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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
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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
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Date of fiscal year end: July 31
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Date of reporting period: January 31, 2005
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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: FIFTH THIRD FUNDS
MONEY MARKET MUTUAL FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
- ----------------
January 31, 2005
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 April 30 (available
beginning June 29, 2005) and October 31 are available, 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
Commentary Section .......... 1
Manager Commentary .......... 3
Schedules of Portfolio
Investments ............... 5
Notes to Schedules of
Portfolio Investments ..... 20
Statements of Assets
and Liabilities ........... 22
Statements of Operations .... 24
Statements of Changes
in Net Assets ............. 26
Notes to Financial
Statements ................ 30
Financial Highlights ........ 34
Supplemental Information .... 40
OUR MESSAGE TO YOU
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[Fifth Third Logo]
Stock investors were rewarded in the second half of 2004 for their patience
during the first half of 2004. For the six-month period ended January 31, 2005,
positive returns for the major stock averages included:
Bar chart:
MARKET INDICES FOR THE SIX MONTH
PERIOD ENDED JANUARY 31, 2005
12.24% gain for the S&P 400 Index of mid cap stocks
13.88% gain for the Russell 2000(R) Index of small cap stocks
16.68% gain for the MSCI EAFE Index of international stocks
Such strong returns were driven by a confluence of several events, including:
1. The results and finality of the November elections
2. Above average economic growth
3. Continued strength in corporate profits
4. Low bond yields
5. A subdued inflationary environment
Additionally, notice the continuation of the patterns where small cap stocks
outperformed large cap stocks and international stocks outperformed domestic
equities. These trends have persisted for several years and represent a reward
for well-diversified investors.
On the domestic front, an environment of above average economic growth combined
with below average bond yield is historically one where small cap stocks thrive.
For international investors, the mixture of a declining U.S. dollar (which was
down about 7% on a trade-weighted basis for the six months ended January 31,
2005) and strong overseas economic growth led by China, India, Eastern Europe
and parts of South America, continued to attract investor focus.
We expect that investors will continue to be attracted to international
opportunities as long as demand from China and India for commodities and other
infrastructure items remains strong and the governments of those two heavily
populated countries allow their middle classes to develop in a free market
economy.
The rising price of commodities and lower bond yields brought together
an unusual circumstance where the outperforming stock sectors over the past six
months were the utilities, energy, consumer discretionary and materials groups.
This resulted in value stocks outperforming growth stocks by nearly 6% from
August 1, 2004 to January 31, 2005. This situtation provided a challenge to our
growth stock team, while offering opportunity for our value stock team.
1
Perhaps the biggest surprise over the past six months was the positive
performance of the bond market. Most market observers, including ourselves, were
of the opinion that bond yields would rise during the second half of 2004 and
that bond prices, in turn, would fall. However, the yield on the 10-year
Treasury bond, which stood at 4.47% on July 31, 2004, fell to 4.13% by January
31, 2005, and prices rose accordingly. This was great for borrowers, but
extended the challenges facing income-focused investors.
The Federal Reserve Board (the "Fed") remained active during the second half of
2004, pushing its benchmark Fed Funds Rate from 1.25% to 2.25%. This was
primarily in response to continued strength in the U.S. economy and the
resulting concerns of increasing inflation that such growth tends to
generate-although consumers have yet to see any alarming impact from the 2004
expansion. The result was low single-digit total returns for bond investors over
the six-month period ending January 31, 2005.
As we move further into 2005, we believe that the financial markets are likely
to remain focused on the Fed, economic and corporate profit growth, the value of
the dollar, inflation and the price of oil. One chief concern is that the Fed
will keep raising rates despite some expectations of slowing growth in economic
activity and corporate profits, while the dollar and oil prices will remain
inflationary wild cards.
While we agree that the pace of corporate profit growth will inevitably slow
from the torrid rates realized over the past few years, in which increases of
more than 20% were common, we are optimistic that the pace will remain above the
long-term average growth rate of 7%. This should provide upside potential for
stocks, though perhaps at a more subdued level than 2004.
We continue to be concerned about the low level of bond yields, and the effects
such circumstances could have for total return bond investors. The Fed is likely
to stay active for at least the first half of 2005, which could continue to
drive up yields on shorter-term issues. Further, we anticipate that economic
growth will linger near the long-term average of 3.5%, which would keep pressure
on the prices of longer-term bonds. In this environment, our bond fund managers
remain cautious.
All in all, we are fairly optimistic for the economy and the stock market.
However, we are aware of the threats to both from higher oil prices. We believe
that this continues to be an environment where investors should be patient and
well-diversified.
Thank you for your continued confidence in the Fifth Third Funds.
/s/ Keith Wirtz
Keith Wirtz, CFA
Chief Investment Chief
/s/ John Augustine
John Augustine, CFA
Investment Strategist
2
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MONEY MARKET FUNDS
For the six-month period ended January 31, 2005, yields across the Fifth Third
Money Market Funds increased gradually on an absolute basis. The rise reflected
the Funds' ability to consistently reinvest in higher yielding issues against
the backdrop of increases in the Federal Funds target rate by the Federal Open
Market Committee ("FOMC") of the Federal Reserve. Within the period, the FOMC
boosted its short-term rate by 25 basis points (0.25%) at four consecutive
meetings between August 2004 and January 2005, hiking the yield from 1.25% to
2.25% in the process.
The Fifth Third Prime Money Market Fund and the Fifth Third Institutional Money
Market Funds maintained a conservative orientation with continued emphasis on
high quality securities. The strategy continued to provide added comfort to the
principal preservation objective.
Relative to respective peer groups, the taxable Money Market Funds generally
maintained a neutral duration position, which allowed for a more effective
response to the FOMC's rate-increase campaign.
In establishing the somewhat defensive position, the taxable Money Market Funds
utilized more traditional money market securities such as U.S. Treasury bills,
U.S. government agency discount notes and commercial paper as cash equivalents.
The Funds also selectively sought floating and fixed rate issues, aiming to
capture incremental yield relative to the implied rate indicated by Federal
Funds futures contracts. This strategy was based on the belief that the FOMC
would remain "measured" in adjusting the Federal Funds target rate upward and
that the increases would continue into 2005. The strategy proved effective as
the floating rate securities provided additional yield while the cash equivalent
position allowed the Funds to readily cope with volatile cash flows during an
uncertain period.
Municipal money markets experienced high volatility during the period, extending
a trend that emerged during the first part of 2004. As the FOMC followed its
deliberate path, economic data reflected a mixed picture of the state of the
economy. Concurrently, tax-exempt money market funds experienced periods of high
inflows and outflows, which subsequently inflicted significant yield swings in
the critical variable rate demand note market.
A limited supply of Michigan issues curtailed efforts to maintain a longer
duration in the Michigan Municipal Money Market Fund, although it managed to
remain in line or slightly longer than its peer group. Amid struggles with
layoffs and other problems in the automotive and furniture industries, the
state's variable rate demand note market started to pick up by the period's end.
Within this environment, the Municipal Money Market Fund maintained a longer
duration than its peer group, which provided modestly better returns. Weekly and
daily floater issues backed by financial institutions and corporations furnished
additional yield, as did smaller issues, which typically carry higher rates due
to lower market demand.
MATURITY COMPOSITION as of January 31, 2005
WEIGHTED AVERAGE MATURITY+
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DAYS DAYS
AS OF 7/31/04 AS OF 1/31/05
Fifth Third Prime
Money Market Fund 43 37
Fifth Third Institutional
Money Market Fund 47 37
Fifth Third Institutional
Government Money Market Fund 44 34
Fifth Third Government
Money Market Fund 45 37
Fifth Third U. S. Treasury
Money Market Fund 37 21
Fifth Third Michigan Municipal
Money Market Fund 36 34
Fifth Third Municipal
Money Market Fund 29 42
+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 Fifth Third Michigan Municipal Money Market 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
MONEY MARKET MATURITY SCHEDULES
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Institutional Michigan
Prime Institutional Government Government U.S. Treasury Municipal Municipal
as of Money Money Money Money Money Money Money
January 31, 2005 Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund
Less than 8 Days 55.0% 55.3% 39.9% 31.0% 75.3% 75.1% 80.7%
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8 to 14 Days 1.9% 1.1% 5.1% -- -- -- --
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15 to 30 Days 20.7% 17.0% 22.1% 35.3% 2.6% 4.1% 1.4%
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31 to 180 Days 17.4% 21.6% 29.4% 30.6% 20.6% 14.8% 6.6%
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181 to 365 Days 4.6% 4.5% 3.5% 3.1% 1.5% 6.0% 11.3%
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366 to 397 Days 0.4% 0.5% -- -- -- -- --
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+Portfolio composition is subject to change.
4
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
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PRINCIPAL
AMOUNT VALUE
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CERTIFICATES OF DEPOSIT (1.7%)
Canadian Imperial Bank Yankee CD,
2.52%, 5/31/05 * $ 10,000 $ 9,999
Discover Bank, 2.55%, 11/3/05 15,000 15,000
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TOTAL CERTIFICATES OF DEPOSIT 24,999
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COMMERCIAL PAPER (10.2%)
Abby National Treasury Service, 2.44%,
2/22/05 ** 10,000 9,986
Barclays Capital, 2.32%, 2/10/05 ** 7,500 7,496
Citigroup, Inc., 2.45%, 2/15/05 ** 15,000 14,986
Depfa Bank PLC, 2.63%, 4/19/05 ** 15,000 14,916
General Electric Capital Corp., 2.60%,
4/18/05 ** 10,000 9,946
General Electric Capital Corp., 2.68%,
4/28/05 ** 10,000 9,936
Goldman Sachs Group, Inc., 2.44%,
2/18/05 ** 15,000 14,982
Nestle Capital Corp., 1.73%, 2/22/05 ** 10,000 9,990
Northern Trust Corp., 2.42%, 2/23/05 ** 15,000 14,978
State Street, 2.46%, 2/24/05 ** 15,000 14,976
Toyota Motor Corp., 2.27%, 2/16/05 ** 15,000 14,986
Toyota Motor Corp., 2.36%, 3/7/05 ** 10,000 9,978
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TOTAL COMMERCIAL PAPER 147,156
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CORPORATE BONDS (33.4%)
Abbey National Treasury Service,
2.30%, 5/26/05 * 10,000 9,999
American Express Credit Corp.,
4.25%, 2/7/05 5,000 5,002
American Express Credit Corp.,
2.43%, 8/9/05 * 15,000 15,003
American Express Credit Corp.,
2.52%, 10/14/05 * 7,500 7,503
American Express Credit Corp.,
6.88%, 11/1/05 5,000 5,150
Amoco Canada, 6.75%, 2/15/05 6,000 6,012
Associates Corp., N.A., 6.00%, 7/15/05 10,585 10,761
Bank of America Corp.,
7.88%, 5/16/05 10,270 10,449
Bank One Corp., 6.50%, 2/1/06 5,000 5,160
Bear Stearns & Co., Inc.,
7.63%, 2/1/05 9,487 9,487
Bear Stearns & Co., Inc.,
2.89%, 3/18/05 * 5,460 5,463
Bear Stearns & Co., Inc.,
2.72%, 4/29/05 * 10,450 10,454
Bear Stearns & Co., Inc.,
2.58%, 12/22/05 * 10,000 10,007
Bear Stearns & Co., Inc.,
2.35%, 2/3/06 * 20,000 20,001
BP Capital PLC, 4.00%, 4/29/05 10,000 10,032
Continued
PRINCIPAL
AMOUNT VALUE
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CORPORATE BONDS, CONTINUED
Citigroup Global Markets,
2.76%, 7/25/05 * $ 5,000 $ 5,001
Citigroup, Inc., 2.28%, 2/7/05 * 15,000 15,000
Coca-Cola Co., 4.00%, 6/1/05 10,582 10,633
Credit Suisse First Boston,
2.51%, 2/8/05 * 20,000 20,001
Credit Suisse First Boston,
2.28%, 8/10/05 * 20,000 20,005
Deutshe Bank, 2.36%, 2/18/05 * 16,350 16,351
First Union Corp., 7.55%, 8/18/05 10,000 10,262
General Electric Capital Corp.,
2.38%, 2/3/06 * 10,000 10,025
General Electric Capital Franchise
Financial, 7.88%, 11/30/05 7,500 7,807
Goldman Sachs Group, Inc.,
7.63%, 8/17/05 17,775 18,265
International Lease Finance Corp.,
5.95%, 6/6/05 5,000 5,064
Lehman Brothers Holdings,
3.05%, 9/28/05 * 21,780 21,856
Mellon Funding Corp.,
7.50%, 6/15/05 8,000 8,149
Merrill Lynch & Co., 4.54%, 3/8/05 4,650 4,660
Merrill Lynch & Co., 2.58%, 2/10/06 * 15,000 15,000
Morgan Stanley Dean Witter,
7.75%, 6/15/05 18,200 18,558
Morgan Stanley Dean Witter,
2.39%, 2/3/06 * 15,000 15,000
National City Bank, 2.41%, 6/10/05 * 15,000 15,002
Societe Generale, 2.38%, 6/14/05 * 10,000 9,999
Societe Generale, 2.35%, 8/10/05 * 18,000 17,997
SunTrust Bank, 2.56%, 10/3/05 * 15,000 15,004
Wal-Mart Stores, Inc., 2.30%, 2/22/05 * 7,000 7,000
Wells Fargo Co., 7.65%, 3/15/05 2,100 2,115
Wells Fargo Co., 6.50%, 6/1/05 5,000 5,068
Wells Fargo Co., 2.45%, 7/15/05 * (c) 25,000 24,999
Wells Fargo Co., 7.25%, 8/24/05 9,500 9,756
Westdeutsche Landesbank,
2.33%, 3/4/05 * 15,000 15,000
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TOTAL CORPORATE BONDS 484,060
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DEMAND NOTES(C) (22.3%)
American Healthcare Funding, 2.47%,
5/1/27, (LOC: LaSalle Bank) * 5,355 5,355
Atlas Industries, Inc., 2.51%, 6/1/10,
(LOC: National City Bank) * 5,120 5,120
Beavercreek Enterprises, 2.51%, 3/2/20,
(LOC: National City Bank) * 4,345 4,345
Buckeye Corrugated, Inc., 2.56%,
10/1/17, (LOC: Key Bank) * 6,495 6,495
Capital One Funding Corp., 2.42%,
10/1/14, (LOC: Bank One) * 2,876 2,876
Continued
5
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
DEMAND NOTES, CONTINUED
Capital One Funding Corp., 2.42%,
7/2/18, (LOC: Bank One) * $ 914 $ 914
Capital One Funding Corp., 2.42%,
10/1/21, (LOC: Bank One) * 1,300 1,300
Capital One Funding Corp., 2.42%,
1/4/27, (LOC: Bank One) * 8,191 8,191
Central Michigan Inns, 2.60%, 4/1/30,
(LOC: Michigan National Bank) * 2,080 2,080
Cornerstone Funding Corp., 2.57%,
12/1/11, (LOC: SunTrust) * 8,495 8,495
Cornerstone Funding Corp., 2.57%,
9/1/25, (LOC: SunTrust) * 5,750 5,750
Germain Properties, 2.40%, 3/1/31,
(LOC: Bank One) * 45,470 45,470
GTB Properties LLC, 2.75%, 7/1/23,
(LOC: National Australia Bank) * 4,665 4,665
Hannahville Indian Community, 2.47%,
6/1/13, (LOC: National City Bank) * 3,805 3,805
Harry W. Albright, Jr., 2.65%, 5/1/21,
(LOC: National Australia Bank) * 5,725 5,725
Heart Center Medical Group, 2.51%,
10/1/30, (LOC: National City Bank) * 10,810 10,810
HWP Co., Ltd. Project, 2.51%,
12/3/18, (LOC: National City Bank) * 4,650 4,650
Idaho Associates LLC, 2.42%, 4/1/27,
(LOC: ABN AMRO) * 5,950 5,950
Iowa 80 Group Inc., 2.55%, 6/1/16,
(LOC: Wells Fargo) * 4,600 4,600
Jackson 2000, 2.56%, 6/1/49,
(LOC: KeyBank) * 9,375 9,375
Jefferson Land Development, 2.56%,
10/1/16, (LOC: National City Bank) * 1,060 1,060
Kahala Senior Living Community,
2.55%, 11/15/33, (LOC: LaSalle Bank) * 30,000 30,000
Landmark Medical LLC, 2.47%, 1/1/21,
(LOC: Bank One) * 8,580 8,580
Lexington Financial Services, 2.63%,
2/1/26, (LOC: LaSalle Bank) * 9,100 9,100
Mount Carmel East Professional, 2.51%,
1/1/14, (LOC: National City) * 1,820 1,820
Mr. K Enterprises, 2.75%, 9/1/16,
(LOC: National Australia Bank) * 6,525 6,525
New Belgium Brewery Co., 2.62%,
7/1/15, (LOC: KeyBank) * 4,010 4,010
Northside Christian Church, 2.47%,
4/1/30, (LOC: Bank One) * 7,030 7,030
Park State Properties LLC, 2.45%,
11/1/34, (LOC: US Bank) * 5,500 5,500
PCI Paper Conversions, Inc., 2.56%,
4/1/10, (LOC: KeyBank) * 2,480 2,480
Pittsburgh Technical Institute, 2.51%,
10/1/15, (LOC: National City Bank) * 11,230 11,230
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
DEMAND NOTES, CONTINUED
PRD Finance LLC, 2.47%, 4/1/27,
(LOC: National City Bank) * $ 8,020 $ 8,020
Precision Tool and Die, 2.51%, 3/1/10,
(LOC: National City Bank) * 3,983 3,983
Revenue Bond CTF Series Trust
Castlegate 3, 2.97%, 6/1/17,
(LOC: AIG) * 1,270 1,270
Royal Town Center LLC Project,
2.56%, 10/1/47, (LOC: Comerica Bank) * 5,095 5,095
Saint Andrew United, 2.55%, 7/1/29,
(LOC: Wachovia Bank) * 15,335 15,335
SDB Private Residence, 2.52%, 3/1/28,
(LOC: US Bank) * 15,485 15,485
Second & Main, Ltd., 2.51%, 8/1/11,
(LOC: National City) * 4,950 4,950
Secor Realty, Inc., 2.51%, 4/1/20,
(LOC: National City Bank) * 9,445 9,445
SGS Tool Co., 2.51%, 12/1/12,
(LOC: Bank One) * 6,475 6,475
Sharonville Realty Enterprises, 2.47%,
4/1/20, (LOC: Bank One) * 9,140 9,140
Southeastern College, 2.50%, 1/2/30,
(LOC: Regions Financial Corp.) * 6,900 6,900
Zeigler Realty LLC, 2.65%, 9/1/26,
(LOC: National City Bank) * 2,490 2,490
-------------
TOTAL DEMAND NOTES 321,894
-------------
MUNICIPAL BONDS (18.6%)
ALASKA (0.3%)
Four Dam Pool Electric Revenue,
2.47%, 7/1/26 * 3,770 3,770
-------------
ARIZONA (0.8%)
Tempe Industrial Development
Authority Revenue, 2.52%, 7/1/34 * (c) 12,075 12,075
-------------
CALIFORNIA (5.4%)
Riverside County, 2.38%, 11/1/20 * 7,200 7,200
Sacramento County, 2.37%, 7/1/20 * 17,490 17,490
Sacramento County, 2.37%, 7/1/22 * 32,430 32,430
San Jose Redevelopment Agency
Revenue, Merged Area, Series G,
2.52%, 8/1/29 * 19,000 19,000
-------------
76,120
-------------
COLORADO (0.1%)
Pueblo Housing Authority Purchasing
Revenue, 2.62%, 12/1/18 * 1,900 1,900
-------------
Continued
6
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
GEORGIA (1.6%)
Athens Clarke County Government
Development Authority Revenue,
University of Georgia Athletic
Department, 2.53%, 7/1/21 * $ 3,735 $ 3,735
Brooks County Development Authority,
Industrial Development Revenue,
Langboard Inc. Project, 2.56%,
4/1/18 * (c) 8,800 8,800
Columbus Development Authority,
Industrial Revenue, Litho-Krome
Project, 2.59%, 8/1/22 * (c) 10,125 10,125
-------------
22,660
-------------
ILLINOIS (0.9%)
Chicago, Series B, 2.58%, 1/1/19 * (c) 13,630 13,630
-------------
INDIANA (0.5%)
Ball State University, 2.52%, 9/1/31 * (c) 7,000 7,000
-------------
IOWA (0.5%)
Dallas County Industrial Development
Revenue, Sioux City Brick & Tile,
2.47%, 9/1/21 * (c) 6,980 6,980
-------------
KANSAS (0.5%)
Park City Industrial Revenue, Hayes
Co., Inc., 2.52%, 9/15/16 * 7,100 7,100
-------------
KENTUCKY (0.6%)
Webster County Industrial Revenue,
Green River Project, 2.55%, 11/1/24 * 8,000 8,000
-------------
MICHIGAN (1.7%)
Commerce Charter Township,
Downtown Development,
2.60%, 10/1/34 * 20,000 20,000
Hospital Association Financial Corp.,
2.66%, 11/1/30 * (c) 4,455 4,455
-------------
24,455
-------------
MINNESOTA (0.8%)
Minneapolis Taxable Pension,
2.47%, 12/1/13 * 11,635 11,635
-------------
MISSISSIPPI (0.2%)
Business Finance Corp., Industrial
Development Revenue, Koch Freezers
LLC, 2.47%, 3/1/17 * 3,100 3,100
-------------
NEW YORK (0.5%)
Housing Development Corp., Multi
Family Rental Housing Revenue,
2.40%, 6/1/33 * 7,800 7,800
-------------
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
NORTH CAROLINA (1.6%)
Capital Facilities Financial Agency
Revenue, Wolfpack Powers,
2.52%, 9/1/18 * $ 5,500 $ 5,500
Roman Catholic Diocese, Series A,
2.61%, 6/1/18 * (c) 18,255 18,255
-------------
23,755
-------------
NORTH DAKOTA (0.5%)
Ward County Health Care Facilities
Revenue, 2.52%, 7/1/31 * (c) 7,400 7,400
-------------
OHIO (0.3%)
Cleveland-Cuyahoga County, Port
Authority Revenue, CBT Project,
2.56%, 6/1/31 * (c) 4,500 4,500
-------------
PENNSYLVANIA (0.2%)
Allegheny County, Industrial
Development Authority Revenue,
2.51%, 5/1/15 * 2,700 2,700
-------------
TENNESSEE (0.6%)
Jackson Energy Authority, 2.52%,
10/1/25 * (c) 8,450 8,450
-------------
UTAH (0.1%)
Housing Corp., Multi Family Revenue,
2.85%, 1/1/22 * 2,061 2,061
-------------
VIRGINIA (0.4%)
Norfolk Redevelopment and Housing
Authority Revenue, 2.52%, 8/1/13 * (c) 5,785 5,785
-------------
WASHINGTON (0.5%)
Housing Finance Community,
Multifamily Revenue, Monticello Park
Project, 2.44%, 8/1/26 * (c) 4,000 4,000
State Housing Finance Community,
Multi Family Revenue, Eaglepointe
Apartments-B, 2.91%, 7/1/28 * 1,610 1,610
State Housing Finance Community,
Multi Family Revenue,Winterhill
Apartments- B, 2.91%, 7/1/28 * 2,175 2,175
-------------
7,785
-------------
TOTAL MUNICIPAL BONDS 268,661
-------------
Continued
7
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (2.1%)
FANNIE MAE (1.4%)
1.75%, 5/23/05 $ 10,000 $ 9,986
1.85%, 6/3/05 10,000 10,000
-------------
19,986
-------------
FEDERAL HOME LOAN BANK (0.7%)
1.51%, 2/2/05 10,000 10,000
-------------
TOTAL U.S. GOVERNMENT AGENCIES 29,986
-------------
REPURCHASE AGREEMENTS (11.6%)
State Street, 2.43%, 2/1/05
(Proceeds at maturity, $11,877,
Collateralized by a U.S. Government
Agency security) 11,876 11,876
UBS Investment Bank, 2.50%, 2/1/05
(Proceeds at maturity, $155,011,
Collateralized by various U.S.
Government Agency securities) 155,000 155,000
-------------
TOTAL REPURCHASE AGREEMENTS 166,876
-------------
MONEY MARKETS (0.6%)
AIM Funds Liquid Assets Portfolio -
Institutional Class 5,276,911 5,277
Goldman Sachs Financial Square Prime
Obligations Fund 2,843,123 2,843
-------------
TOTAL MONEY MARKETS 8,120
-------------
TOTAL INVESTMENTS (COST
$1,451,752)(A) - 100.5% 1,451,752
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.5)% (7,325)
-------------
NET ASSETS - 100.0% $ 1,444,427
=============
See notes to schedule of portfolio investments and notes to financial statements.
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (1.8%)
Canadian Imperial Bank Yankee CD,
2.52%, 5/31/05 * $ 5,000 $ 5,000
Discover Bank, 2.10%, 3/15/05 14,800 14,792
-------------
TOTAL CERTIFICATES OF DEPOSIT 19,792
-------------
COMMERCIAL PAPER (20.3%)
AIG Funding, Inc., 2.31%, 2/7/05 ** 15,000 14,994
Barclays Capital, 2.29%, 2/3/05 ** 15,000 14,998
Barclays Capital, 2.32%, 2/10/05 ** 7,500 7,496
BNP Paribas, 2.44%, 3/23/05 ** 10,000 9,966
Depfa Bank PLC, 2.63%, 4/19/05 ** 5,000 4,972
Deutsche Bank, 2.53%, 2/1/05 ** 40,000 40,001
General Electric Capital Corp.,
2.36%, 3/2/05 ** 10,000 9,981
General Electric Capital Corp.,
2.53%, 4/6/05 ** 10,000 9,955
General Electric Capital Corp.,
2.68%, 4/28/05 ** 5,000 4,968
Goldman Sachs Group, Inc.,
2.52%, 2/17/05 ** 15,000 14,983
Michigan State Taxable,
2.59%, 10/19/05 2,000 2,000
Purdue University, 2.35%, 2/3/05 13,250 13,250
Rabobank Capital Funding Trust,
2.45%, 3/31/05 ** 10,000 9,961
Societe Generale, 2.40%, 3/9/05 ** 15,000 14,964
Toyota Motor Corp., 2.27%, 2/16/05 ** 10,000 9,991
Toyota Motor Corp., 2.36%, 3/7/05 ** 15,000 14,966
University of Texas, 2.28%, 2/3/05 8,633 8,633
Wells Fargo & Co., 2.27%, 2/1/05 ** 15,000 15,000
-------------
TOTAL COMMERCIAL PAPER 221,079
-------------
CORPORATE BONDS (36.4%)
Abbey National Treasury Service,
2.30%, 5/26/05 * 15,000 14,999
American Express Credit Corp.,
4.25%, 2/7/05 10,000 10,004
American Express Credit Corp.,
2.43%, 8/9/05 * 10,000 10,002
American General Corp.,
7.75%, 4/1/05 1,790 1,808
Amoco Canada, 6.75%, 2/15/05 12,650 12,672
Atlantic Richfield, 10.88%, 7/15/05 5,850 6,062
Bank of America Corp., 7.88%, 5/16/05 5,967 6,069
Bank One Corp., 7.63%, 8/1/05 9,910 10,165
Bank One Corp., 6.50%, 2/1/06 5,000 5,160
Barclays Bank, 2.36%, 3/14/05 * 25,000 24,999
Bear Stearns & Co., Inc.,
7.63%, 2/1/05 17,534 17,534
Bear Stearns & Co., Inc.,
2.58%, 12/22/05 * 5,000 5,004
Continued
8
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
CORPORATE BONDS, CONTINUED
Bear Stearns & Co., Inc.,
2.35%, 2/3/06 * $ 15,000 $ 15,000
BP Capital PLC, 4.00%, 4/29/05 10,000 10,032
BP Capital PLC, 4.63%, 5/27/05 1,000 1,008
Citigroup, Inc., 2.28%, 2/7/05 * 14,000 14,000
Citigroup, Inc., 4.13%, 6/30/05 5,000 5,029
Citigroup, Inc., 6.75%, 12/1/05 8,500 8,765
Coca-Cola Co., 4.00%, 6/1/05 8,000 8,032
Credit Suisse First Boston,
2.51%, 2/8/05 * 5,000 5,000
Credit Suisse First Boston,
2.20%, 5/4/05 * 15,000 15,001
Credit Suisse First Boston,
2.28%, 8/10/05 * 13,200 13,204
Deutshe Bank, 2.36%, 2/18/05 * 6,125 6,125
First Union Corp., 7.70%, 2/15/05 10,735 10,759
First Union Corp., 7.55%, 8/18/05 14,700 15,091
General Electric Capital Corp.,
7.25%, 2/1/05 6,000 6,000
General Electric Capital Corp.,
2.38%, 2/3/06 * 10,000 10,025
General Electric Capital Franchise
Financial, 7.88%, 11/30/05 2,750 2,863
Goldman Sachs Group, Inc.,
7.63%, 8/17/05 10,133 10,404
Household Finance Corp.,
2.36%, 7/5/05 * 15,000 15,000
International Lease Finance Corp.,
5.12%, 6/1/05 2,700 2,722
International Lease Finance Corp.,
5.95%, 6/6/05 5,150 5,212
Mellon Funding Corp., 7.50%, 6/15/05 3,875 3,949
Merrill Lynch & Co., 2.32%, 2/23/05 * 6,300 6,300
Merrill Lynch & Co., 4.54%, 3/8/05 7,750 7,771
Merrill Lynch & Co., 6.00%, 7/15/05 4,110 4,176
Morgan Stanley Dean Witter,
7.75%, 6/15/05 13,400 13,659
Societe Generale, 2.38%, 6/14/05 * 15,000 14,998
Societe Generale, 2.35%, 8/10/05 * 3,000 2,999
US Bank NA, 2.44%, 12/5/05 * 3,300 3,301
Wells Fargo Co., 2.57%, 3/24/05 * 15,000 15,002
Wells Fargo Co., 2.45%, 7/15/05 * 10,000 10,000
Westdeutsche Landesbank,
2.33%, 3/4/05 * 10,000 10,000
-------------
TOTAL CORPORATE BONDS 395,905
-------------
DEMAND NOTES(C) (6.0%)
Capital One Funding, 2.42%, 8/2/21,
(LOC: Bank One) * 4,717 4,717
Capital One Funding, 2.42%, 4/1/26,
(LOC: Bank One) * 11,571 11,571
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
DEMAND NOTES, CONTINUED
Cornerstone Funding Corp., 2.57%,
11/15/06, (LOC: SunTrust) * $ 4,585 $ 4,585
Cornerstone Funding Corp., 2.57%,
1/1/34, (LOC: SunTrust) * 4,215 4,215
Flatrock River Lodge LP, 2.66%,
7/1/16, (LOC: FHLB) * 1,520 1,520
Gulf Gate Apartments, 2.52%, 9/1/28,
(LOC: Wells Fargo) * 2,000 2,000
Kahala Senior Living Community,
2.55%, 11/15/33, (LOC: LaSalle Bank) * 10,750 10,750
Lodge of the Wabash, 2.66%, 7/1/16,
(LOC: FHLB) * 1,730 1,730
Metaltec Steel Abrasive, 2.63%,
11/1/34, (LOC: Comerica Bank) * 4,760 4,760
Northport Baptist Church, 2.60%,
9/1/24, (LOC: Regions Financial Corp.) * 3,100 3,100
Park State Properties LLC, 2.45%,
11/1/34, (LOC: US Bank) * 5,500 5,500
Praise Tabernacle Outreach, 2.62%,
6/1/24, (LOC: Commerica Bank) * 3,950 3,950
Vancouver Clinic Building, 2.52%,
2/1/24, (LOC: US Bank) * 4,800 4,800
White River Lodge LP, 2.66%, 7/1/16,
(LOC: FHLB) * 1,625 1,625
-------------
TOTAL DEMAND NOTES 64,823
-------------
MUNICIPAL BONDS (24.5%)
ARIZONA (0.3%)
Tucson Airport Authority, Inc.,
2.52%, 12/1/18 *(c) 3,635 3,635
-------------
ARKANSAS (1.6%)
Northwest Regional Airport Authority,
Airport Revenue, Series A,
2.55%, 2/1/21 * 15,725 15,725
Northwest Regional Airport Authority,
Airport Revenue, Series B,
2.55%, 2/1/08 * 1,950 1,950
-------------
17,675
-------------
CALIFORNIA (4.2%)
Kern Water Authority Revenue,
Series B, 2.52%, 7/1/28 *(c) 4,900 4,900
Sacramento County, 2.37%, 7/1/20 *(c) 7,220 7,220
Sacramento County, 2.37%, 7/1/22 *(c) 5,000 5,000
Sacramento County Housing Authority,
Multifamily Revenue, Natomas Park
Apartments, Series B, 2.45%, 7/15/35 *(c) 2,250 2,250
Saint Michael's Episcopal Day School,
2.57%, 7/1/28 *(c) 2,740 2,740
Continued
9
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA, CONTINUED
San Jose Financing Authority Lease
Revenue, Hayes Mansion, Phase B,
2.37%, 7/1/24 *(c) $ 8,000 $ 8,000
Statewide Community Development
Authority, Multifamily Revenue,
Dublin, 2.47%, 12/15/37 *(c) 5,010 5,010
Statewide Community Development
Authority, Multifamily Revenue, Fairway
Properties, 2.47%, 12/15/37 *(c) 5,550 5,550
Statewide Community Development
Authority, Multifamily Revenue, Palms
Apartments, 2.43%, 5/15/35 *(c) 3,145 3,145
Statewide Community Development
Authority, Multifamily Revenue,
Series X-T, 2.45%, 10/15/32 *(c) 1,600 1,600
-------------
45,415
-------------
COLORADO (0.1%)
Denver City & County Airport Revenue,
Series D, 2.47%, 11/15/05 *(c) 1,600 1,600
-------------
FLORIDA (0.1%)
Lee County Industrial Development
Authority Revenue, Suncoast Aluminum,
Series B, 2.52%, 10/1/22 *(c) 955 955
-------------
GEORGIA (1.7%)
Albany Dougherty, Payroll Development
Authority, 2.60%, 7/1/24 *(c) 5,035 5,035
Athens-Clarke County Industrial
Development Authority Revenue,
Leucadia Inc., Project, 2.52%, 7/1/07 *(c) 3,550 3,550
Atlanta Urban Residential Finance
Authority, 2.62%, 1/1/23 *(c) 700 700
Augusta Housing Authority Multifamily
Revenue, 2.66%, 5/15/33 *(c) 500 500
Municipal Gas Authority Revenue,
2.59%, 2/1/15 *(c) 8,380 8,380
-------------
18,165
-------------
ILLINOIS (1.5%)
Evanston, Maple Street Parking Facility,
2.50%, 12/1/21 *(c) 2,000 2,000
Financial Authority Revenue, Fairview
Obligation, Series D, 2.55%, 8/15/34 * 1,180 1,180
Financial Authority Revenue, Fariview
Obligation, Series C, 2.55%, 8/15/34 * 12,595 12,595
-------------
15,775
-------------
INDIANA (2.8%)
Health Facilities Financing Authority
Revenue, 2.42%, 4/1/24 *(c) 5,500 5,500
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Health Facilities Financing Authority,
Hospital Revenue, Community
Foundation of Northwest Indiana,
Series B, 2.55%, 8/1/25 *(c) $ 24,375 $ 24,375
Indianapolis Economic Development
Multifamily Housing Revenue, Series B,
2.65%, 11/1/36 *(c) 991 991
-------------
30,866
-------------
IOWA (0.5%)
Finance Authority Retirement Community
Revenue, 2.55%, 12/1/20 *(c) 5,315 5,315
-------------
KENTUCKY (1.2%)
Bardstown Industrial Revenue,
2.60%, 6/1/24 *(c) 7,950 7,950
Boone County Industrial Revenue,,
2.62%, 6/1/23 *(c) 5,550 5,550
-------------
13,500
-------------
MICHIGAN (3.4%)
Canton Charter Township, General
Obligation, 2.65%, 3/1/11 * 1,500 1,500
Commerce Charter Township Downtown
Development, 2.63%, 10/1/18 *(c) 13,000 13,000
Commerce Charter Township, Downtown
Development, 2.55%, 10/1/34 * 15,000 15,000
Grand Traverse Band Economic
Development Corp, 2.52%, 9/1/18 *(c) 7,600 7,600
Strategic Fund, Limited Obligation
Revenue, Carpenter Enterprises, 2.42%,
10/1/05 *(c) 300 300
-------------
37,400
-------------
MINNESOTA (0.5%)
Plymouth Revenue, Carlson Center
Project, 2.52%, 4/1/12 *(c) 1,400 1,400
St. Paul Port Authority District,
2.62%, 3/1/22 *(c) 3,655 3,655
-------------
5,055
-------------
NEBRASKA (1.1%)
Omaha Special Obligation, Riverfront
Redevelopment, 2.65%, 2/1/26 * 11,765 11,765
-------------
NEW MEXICO (0.3%)
Albuquerque Industrial Revenue,
KTECH Corp. Project, 2.52%,
11/1/22 *(c) 1,900 1,900
Chaves County Revenue, 2.52%, 8/1/09 * 1,500 1,500
-------------
3,400
-------------
NEW YORK (0.5%)
Housing Finance Agency, Service
Contract Revenue, Series F,
2.40%, 9/15/07 *(c) 5,500 5,500
-------------
Continued
10
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
NORTH CAROLINA (1.6%)
Natural Gas, Series A, 2.00%, 3/1/05 (c) $ 7,200 $ 7,204
Roman Catholic Diocese, Series A,
2.61%, 6/1/18 *(c) 9,760 9,760
-------------
16,964
-------------
OHIO (0.9%)
Cuyahoga County Ohio Health Care
Revenue, 2.61%, 5/15/12 * 4,295 4,295
Richland County, Healthcare Facilities
Revenue, Wesleyan, Series B,
2.33%, 11/1/27 * 5,000 5,000
-------------
9,295
-------------
PENNSYLVANIA (0.2%)
Berks County Industrial Development
Authority Revenue, 2.67%, 7/1/16 *(c) 1,700 1,700
-------------
SOUTH CAROLINA (0.3%)
Facilities Authority, 2.52%, 6/1/10 * 3,760 3,760
-------------
TEXAS (0.3%)
Alamo Heights Higher Education
Facilities Corp., 2.66%, 4/1/07 *(c) 2,375 2,375
Houston Health Facilities Development
Corp., 2.68%, 2/15/34 *(c) 1,310 1,310
-------------
3,685
-------------
UTAH (1.0%)
Telecommunication Infrastucture
Agency, 2.52%, 7/15/26 *(c) 7,000 7,000
Tooele City Industrial Development
Revenue, Series A, 2.52%, 10/1/22 *(c) 3,500 3,500
-------------
10,500
-------------
WASHINGTON (0.4%)
Housing Finance Community
Multifamily Housing Revenue, Everett,
Series B, 2.44%, 1/15/38 *(c) 2,000 2,000
Housing Finance Community
Multifamily Revenue, Granite Falls,
Series B, 2.45%, 10/1/27 *(c) 1,260 1,260
Housing Finance Community
Multifamily Revenue, Summer Ridge,
Series B, 2.62%, 12/1/29 *(c) 860 860
-------------
4,120
-------------
TOTAL MUNICIPAL BONDS 266,045
-------------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (0.6%)
FEDERAL HOME LOAN BANK (0.6%)
1.51%, 2/2/05 $6,000 $ 6,000
-------------
TOTAL U.S. GOVERNMENT AGENCIES 6,000
-------------
REPURCHASE AGREEMENTS (10.4%)
State Street, 2.43%, 2/1/05
(Proceeds at maturity, $8,622,
Collateralized by a U.S.
Government Agency security) 8,621 8,621
UBS Investment Bank, 2.50%, 2/1/05
(Proceeds at maturity, $105,007,
Collateralized by various U.S.
Government Agency securities) 105,000 105,000
-------------
TOTAL REPURCHASE AGREEMENTS 113,621
-------------
MONEY MARKETS (0.6%)
AIM Funds Liquid Assets Portfolio -
Institutional Class 5,341,524 5,342
Goldman Sachs Financial Square Prime
Obligations Fund 1,555,418 1,555
-------------
TOTAL MONEY MARKETS 6,897
-------------
TOTAL INVESTMENTS (COST
$1,094,162)(A) - 100.6% 1,094,162
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.6)% (6,341)
-------------
NET ASSETS - 100.0% $ 1,087,821
=============
See notes to schedule of portfolio investments
and notes to financial statements.
11
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (76.1%)
FANNIE MAE (26.5%)
1.15%, 2/4/05 ** $ 5,000 $ 5,000
2.42%, 2/7/05 ** 15,000 14,994
2.26%, 2/9/05 ** 8,100 8,096
7.13%, 2/15/05 5,000 5,009
2.42%, 2/18/05 * 14,510 14,510
2.30%, 2/23/05 ** 15,000 14,979
1.40%, 2/25/05 2,500 2,499
2.39%, 3/4/05 ** 15,000 14,970
7.65%, 3/10/05 1,400 1,408
3.88%, 3/15/05 11,536 11,556
1.40%, 3/29/05 4,500 4,495
2.56%, 4/6/05 ** 5,000 4,978
2.44%, 4/20/05 ** 6,000 5,969
1.85%, 6/3/05 5,000 5,000
5.75%, 6/15/05 2,222 2,247
2.52%, 10/7/05 * 15,000 15,010
2.33%, 12/9/05 * 14,750 14,742
-------------
145,462
-------------
FEDERAL FARM CREDIT BANK (5.5%)
2.25%, 2/3/05 * 15,000 14,999
1.23%, 3/22/05 3,000 2,997
4.38%, 4/15/05 2,240 2,250
2.25%, 7/22/05 * 10,000 9,999
-------------
30,245
-------------
FEDERAL HOME LOAN BANK (23.8%)
1.51%, 2/2/05 3,000 3,000
4.38%, 2/15/05 15,000 15,011
1.40%, 2/25/05 15,000 14,991
2.41%, 3/2/05 ** 3,500 3,493
1.35%, 3/22/05 6,000 5,995
1.40%, 3/29/05 6,380 6,373
2.48%, 3/30/05 * 15,000 14,999
1.30%, 4/13/05 10,000 9,984
4.63%, 4/15/05 5,000 5,021
1.50%, 5/4/05 4,000 3,994
2.45%, 7/26/05 * 8,000 7,999
1.75%, 8/15/05 4,725 4,700
3.25%, 8/15/05 6,440 6,469
2.20%, 8/18/05 3,500 3,498
2.38%, 9/16/05 * 25,000 24,993
-------------
130,520
-------------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC (20.3%)
2.24%, 2/1/05 ** $ 10,000 $ 10,000
1.89%, 2/8/05 ** 15,000 14,994
3.88%, 2/15/05 12,810 12,820
2.06%, 3/2/05 ** 10,000 9,983
2.40%, 3/15/05 ** 10,000 9,972
2.10%, 4/12/05 ** 10,000 9,960
2.57%, 4/19/05 ** 10,000 9,945
2.17%, 11/7/05 * 14,390 14,391
2.13%, 11/15/05 575 571
2.05%, 11/28/05 4,000 3,974
2.48%, 1/15/42 ** 14,883 14,883
-------------
111,493
-------------
TOTAL U.S. GOVERNMENT AGENCIES 417,720
-------------
REPURCHASE AGREEMENTS (23.4%)
State Street, 2.43%, 2/1/05
(Proceeds at maturity, $13,760,
Collateralized by a U.S. Government
Agency security) 13,759 13,759
UBS Investment Bank, 2.50%, 2/1/05
(Proceeds at maturity, $115,008,
Collateralized by various U.S.
Government Agency securities) 115,000 115,000
-------------
TOTAL REPURCHASE AGREEMENTS 128,759
-------------
MONEY MARKETS (0.4%)
AIM Treasury Money Market Fund 1,995,934 1,996
-------------
TOTAL MONEY MARKETS 1,996
-------------
TOTAL INVESTMENTS
(COST $548,475)(a) - 99.9% 548,475
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 801
-------------
NET ASSETS - 100.0% $ 549,276
=============
See notes to schedule of portfolio investments
and notes to financial statements.
12
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (95.9%)
FEDERAL FARM CREDIT BANK (23.9%)
3.88%, 2/1/05 $ 5,000 $ 5,000
2.25%, 2/3/05 * 10,000 10,000
2.43%, 3/24/05 * 3,450 3,450
1.75%, 4/8/05 1,000 998
2.58%, 4/19/05 * 5,000 5,000
2.25%, 7/22/05 * 10,000 9,999
2.27%, 8/10/05 * 10,000 10,000
2.46%, 9/1/05 * 16,000 16,008
2.40%, 10/20/05 * 11,500 11,497
-------------
71,952
-------------
FEDERAL HOME LOAN BANK (71.3%)
1.51%, 2/2/05 3,000 3,000
2.22%, 2/2/05 ** 7,000 7,000
2.23%, 2/4/05 ** 15,000 14,998
2.28%, 2/7/05 ** 5,246 5,244
1.88%, 2/15/05 2,910 2,911
4.00%, 2/15/05 3,200 3,203
7.13%, 2/15/05 2,040 2,044
2.31%, 2/16/05 ** 10,000 9,990
2.28%, 2/18/05 ** 11,305 11,293
2.39%, 2/23/05 ** 10,000 9,985
1.40%, 2/25/05 15,000 14,991
2.32%, 3/2/05 ** 10,000 9,981
2.33%, 3/4/05 ** 8,600 8,582
2.51%, 3/16/05 ** 12,250 12,213
2.46%, 3/18/05 ** 10,000 9,969
2.45%, 3/21/05 * 2,000 2,000
1.38%, 3/28/05 2,000 1,998
2.48%, 3/30/05 * 10,000 10,000
2.48%, 4/6/05 ** 12,500 12,445
1.26%, 4/8/05 2,300 2,295
2.51%, 4/8/05 ** 5,000 4,977
1.63%, 4/15/05 1,665 1,664
2.13%, 4/15/05 ** 2,357 2,347
4.63%, 4/15/05 9,445 9,488
2.59%, 4/22/05 ** 4,200 4,176
2.45%, 4/25/05 * 5,000 5,000
4.00%, 4/25/05 2,000 2,007
1.63%, 5/10/05 2,000 1,995
6.96%, 6/15/05 2,500 2,539
1.46%, 7/19/05 1,000 994
1.45%, 7/22/05 1,500 1,494
1.75%, 8/15/05 4,440 4,414
2.25%, 8/30/05 3,850 3,846
2.38%, 9/16/05 * 15,000 14,997
6.50%, 11/15/05 1,000 1,027
-------------
215,107
-------------
TENNESSEE VALLEY AUTHORITY (0.7%)
6.38%, 6/15/05 2,000 2,029
-------------
TOTAL U.S. GOVERNMENT AGENCIES 289,088
-------------
Continued
SHARES VALUE
- ----------------------------------------------------------------------------------------
MONEY MARKETS (4.0%)
Goldman Sachs Financial Square
Federal Fund 10,949,852 $ 10,950
STIT Government Tax Advantage Fund 1,017,822 1,018
-------------
TOTAL MONEY MARKETS 11,968
-------------
TOTAL INVESTMENTS
(COST $301,056)(a) - 99.9% 301,056
OTHER ASSETS IN EXCESS OF
LIABILITIES - 0.1% 369
-------------
NET ASSETS - 100.0% $ 301,425
=============
See notes to schedule of portfolio investments
and notes to financial statements.
13
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
TREASURY NOTES (8.2%)
7.50%, 2/15/05 $ 35,000 $ 35,081
1.63%, 3/31/05 35,000 35,024
6.75%, 5/15/05 20,000 20,268
5.75%, 11/15/05 20,000 20,466
-------------
TOTAL TREASURY NOTES 110,839
-------------
TREASURY BILLS (16.5%)
2.19%, 3/3/05 40,000 39,936
1.94%, 3/10/05 15,000 14,970
1.94%, 3/17/05 25,000 24,941
2.22%, 4/14/05 30,000 29,873
2.39%, 4/28/05 40,000 39,778
2.41%, 5/5/05 40,000 39,754
2.62%, 6/23/05 35,000 34,650
-------------
TOTAL TREASURY BILLS 223,902
-------------
REPURCHASE AGREEMENTS (74.5%)(b)
ABN AMRO, 2.45%, 2/1/05 210,000 210,000
Barclays Capital, 2.45%, 2/1/05 210,000 210,000
Credit Suisse First Boston,
2.43%, 2/1/05 50,000 50,000
Deutsche Bank, 2.45%, 2/1/05 225,000 225,000
Nesbitt Burns, 2.42%, 2/1/05 50,000 50,000
Societe Generale, 2.42%, 2/1/05 50,000 50,000
State Street, 2.36%, 2/1/05 15,780 15,780
UBS Investment Bank, 2.45%, 2/1/05 200,000 200,000
-------------
TOTAL REPURCHASE AGREEMENTS 1,010,780
-------------
MONEY MARKETS (0.8%)
AIM Treasury Money Market Fund 10,365,127 10,365
-------------
TOTAL MONEY MARKETS 10,365
-------------
TOTAL INVESTMENTS
(COST $1,355,886)(a) - 100.0% 1,355,886
LIABILITIES IN EXCESS OF OTHER
ASSETS - 0.0% (378)
-------------
NET ASSETS - 100.0% $ 1,355,508
=============
See notes to schedule of portfolio investments and notes
to financial statements.
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER (6.3%)
MICHIGAN (6.3%)
Building Authority, 1.95%, 4/27/05 $ 10,000 $ 10,000
Modal, Series 2002 A, GO,
2.00%, 10/4/05 2,000 2,000
-------------
12,000
-------------
TOTAL COMMERCIAL PAPER 12,000
-------------
MUNICIPAL BONDS (93.3%)
MICHIGAN (90.8%)
Bay City, Series B, GO, 2.50%, 10/1/05 330 332
Deckerville Community School District,
GO, 2.00%, 5/1/05 305 306
Delhi Township, GO, 2.00%, 5/1/05 320 321
Detroit Economic Development Corp.,
GO, 1.85%, 5/1/09 * 3,330 3,330
Detroit Waterfront Reclamation,
Series C, 2.00%, 5/1/09 * 7,405 7,405
Detroit, Series A, GO, 6.70%, 4/1/10,
(Prerefunded 4/1/05 @ 101) 1,000 1,019
Farmington Hills Economic
Development Corp., Marketing
Displays, (AMT), 1.85%, 9/1/08 * 655 655
Genesee County Economic Development
Corp., Rawcar Group, (AMT),
1.97%, 5/1/20 * 2,365 2,365
Grand Rapids Water Supply, 1.82%, 1/1/20 * 6,305 6,305
Grand Valley State University Revenue,
Series B, 1.85%, 6/1/27 * 4,920 4,920
Holly Area School District, GO, 5.63%,
5/1/25, (Prerefunded 5/1/05 @ 101) 130 137
Holly Area School District,
Refunded-1999, GO, 5.38%, 5/1/12,
(Prerefunded 5/1/05 @ 101) 820 836
Hospital Finance Authority Revenue
Balmoral, Inc., 1.75%, 9/1/16 * 555 555
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A,
1.92%, 3/1/14 * 1,300 1,300
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A,
1.92%, 3/1/30 * 400 400
Housing Development Authority, Hunt
Club Apartments, 1.89%, 7/15/35 * 500 500
Housing Development Authority, Ltd.,
1.89%, 1/1/29 * 3,900 3,900
Housing Development Authority, Rental
Housing Revenue, Series B,
1.90%, 10/1/05 1,065 1,065
Housing Development Authority, Rental
Housing Revenue, Series B,
1.82%, 4/1/19 * 3,010 3,010
Continued
14
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Housing Development Authority,
Series A, 1.90%, 9/1/35 * $ 3,000 $ 3,000
Huron Valley School District, GO,
5.63%, 5/1/05 200 202
Jackson County Hospital Financial
Authority, Hospital Revenue,
W.A. Foote Memorial Hospital-B,
1.86%, 6/1/26 * 2,450 2,450
Jackson Public Schools, 2.50%, 5/1/05 200 200
Job Development, East Lansing,
1.85%, 12/1/14 * 300 300
Kalamazoo, 2.00%, 4/1/05 235 235
Kalamazoo Hospital Finance Authority,
Refunding & Improvement, Bronson
Methodist Hospital, 5.25%, 5/15/05 1,000 1,010
Kalamazoo, GO, 3.00%, 4/1/05 395 396
Leelanau County Economic
Development Corp., American
Community Mutual Insurance Co.,
1.65%, 6/15/06 * 660 660
Mancelona Area Water, Sewer Authority,
Water Supply Systems Revenue,
1.92%, 4/1/21 * 735 735
Marquette County Economic
Development Corp., Pioneer Labs, Inc.,
Series A, (AMT), 2.10%, 6/1/12 * 900 900
Municipal Building Authority Revenue,
Series B-1, 3.00%, 8/19/05 1,000 1,008
Novi, GO, 4.90%, 10/1/05 250 255
Oakland County Economic Development
Corp., Limited Obligation Revenue,
Moody Family, Ltd., (AMT),
2.00%, 9/1/12 * 2,035 2,035
Oakland County Economic Development
Corp., North America, (AMT),
2.00%, 7/1/18 * 1,900 1,900
Riverview Community School District,
GO, 2.00%, 5/1/05 860 861
Southfield Public Schools, School
Building & Site, Series B, GO,
2.00%, 5/1/05 995 997
St. Clair Shores Economic Development
Corp., Borman's, Inc., (AMT),
2.40%, 10/15/06 * 350 350
State Building Authority Revenue,
Facilities Program, Series I,
5.00%, 10/15/05 1,000 1,023
State Comprehensive Transportation
Revenue Bonds, Series A,
5.00%, 5/15/05 225 227
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
State Hospital Financial Authority
Revenue, Holland Community Hospital,
Series B, 1.87%, 1/1/34 * $ 1,400 $ 1,400
State, Series A, GO, 3.50%, 9/30/05 4,000 4,038
Sterling Heights Economic Development
Corp., Sterling Shopping Center,
1.87%, 12/1/10 * 670 670
Strategic Fund, Automatic Spring,
(AMT), 2.10%, 9/1/10 * 1,300 1,300
Strategic Fund, Banks Hardwoods, Inc.,
(AMT), 1.99%, 7/1/12 * 882 882
Strategic Fund, Biewer of Lansing,
(AMT), 1.99%, 5/1/19 * 1,265 1,265
Strategic Fund, Brazing Concepts Co.,
(AMT), 2.00%, 9/1/18 * 1,900 1,900
Strategic Fund, Donnelly Corp.,
Series A, (AMT), 1.95%, 3/1/10 * 2,500 2,500
Strategic Fund, Donnelly Corp.,
Series B, (AMT), 1.65%, 4/1/08 * 2,500 2,500
Strategic Fund, E & L Meat Co.,
(AMT), 1.98%, 3/1/29 * 2,175 2,175
Strategic Fund, Emerson Schools,
1.92%, 7/1/24 * 2,645 2,645
Strategic Fund, Environmental Powder
Co., (AMT), 2.00%, 7/1/22 * 345 345
Strategic Fund, Fitz-Land LLC, (AMT),
1.97%, 8/1/25 * 2,535 2,535
Strategic Fund, Fleet Engineers Project,
(AMT), 2.00%, 9/1/09 * 600 600
Strategic Fund, Forest City
Technologies, (AMT), 1.97%, 9/1/15 * 1,900 1,900
Strategic Fund, Frederick Wolfgang,
(AMT), 2.00%, 9/1/26 * 820 820
Strategic Fund, Glastender, Inc., (AMT),
2.00%, 9/1/08 * 600 600
Strategic Fund, HP Pelzer, Inc., (AMT),
2.00%, 3/1/11 * 800 800
Strategic Fund, Jedco, Inc., (AMT),
2.00%, 11/1/15 * 2,320 2,320
Strategic Fund, John Dekker & Sons,
(AMT), 2.00%, 1/1/18 * 390 390
Strategic Fund, Joy Properties LLC,
2.00%, 5/1/17 * 300 300
Strategic Fund, Kaspari Investments
LLC, (AMT), 2.00%, 6/1/09 * 100 100
Strategic Fund, Kazoo, Inc., (AMT),
1.65%, 3/15/07 * 260 260
Strategic Fund, Kundinger, (AMT),
2.00%, 2/1/29 * 1,235 1,235
Continued
15
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Kurdziel Iron, (AMT),
2.07%, 5/1/10 * $ 900 $ 900
Strategic Fund, Limited Obligation
Revenue, All American Property LLC,
(AMT), 2.00%, 12/1/18 * 800 800
Strategic Fund, Limited Obligation
Revenue, American Litho Project,
(AMT), 2.09%, 2/1/31 * 3,200 3,200
Strategic Fund, Limited Obligation
Revenue, Besser International Sales Co.
Project, (AMT), 2.00%, 9/1/11 * 400 400
Strategic Fund, Limited Obligation
Revenue, BK Real Estate Project,
(AMT), 2.00%, 12/1/23 * 1,990 1,990
Strategic Fund, Limited Obligation
Revenue, Bowers Manufacturing Co.
(AMT), 2.00%, 9/1/10 * 200 200
Strategic Fund, Limited Obligation
Revenue, Cayman Chemical Company
Project, (AMT), 1.97%, 6/1/28 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Creative Foam Corp. (AMT),
2.00%, 11/1/11 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc. (AMT),
2.00%, 3/1/11 * 2,400 2,400
Strategic Fund, Limited Obligation
Revenue, Detroit Symphony Project,
Series B, 1.90%, 6/1/31 * 700 700
Strategic Fund, Limited Obligation
Revenue, Harbor Industries, Inc.
Project, (AMT), 2.10%, 4/1/25 * 300 300
Strategic Fund, Limited Obligation
Revenue, Henry Ford Museum Village
Project, 1.90%, 12/1/33 * 100 100
Strategic Fund, Limited Obligation
Revenue, Holland Home Obligation
Group, 1.88%, 11/1/35 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Jet Enterprises, (AMT),
1.99%, 3/1/11 * 800 800
Strategic Fund, Limited Obligation
Revenue, Landscape Forms, Inc.
Project, (AMT), 2.00%, 5/1/14 * 200 200
Strategic Fund, Limited Obligation
Revenue, Lansing Saint Vincent Home
Project, 1.85%, 8/1/28 * 1,200 1,200
Strategic Fund, Limited Obligation
Revenue, Metal Technologies Project,
(AMT), 1.97%, 7/1/19 * 2,200 2,200
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, Midwest Kellering Co.
Project, (AMT), 2.00%, 6/1/19 * $ 1,900 $ 1,900
Strategic Fund, Limited Obligation
Revenue, Motor City Mold, Inc.
Project, (AMT), 1.97%, 3/1/21 * 1,550 1,550
Strategic Fund, Limited Obligation
Revenue, Oak Industrial Drive Project,
(AMT), 2.00%, 11/1/33 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Plascore Inc. Project, (AMT),
2.00%, 7/1/16 * 150 150
Strategic Fund, Limited Obligation
Revenue, Production Engineering
Project, (AMT), 1.98%, 6/1/13 * 1,800 1,800
Strategic Fund, Limited Obligation
Revenue, R. L. Adams Plastics, Inc.,
(AMT), 2.00%, 5/1/23 * 2,215 2,215
Strategic Fund, Limited Obligation
Revenue, RA Rink, LLC Project, (AMT),
2.00%, 11/1/17 * 1,140 1,140
Strategic Fund, Limited Obligation
Revenue, River City Plastics, Inc.,
(AMT), 2.00%, 3/1/21 * 2,210 2,210
Strategic Fund, Limited Obligation
Revenue, RL Enterprises LLC (AMT),
2.00%, 12/1/09 * 500 500
Strategic Fund, Limited Obligation
Revenue, S.K.Y. Sakaiya Corp. Project,
(AMT), 1.99%, 5/1/10 * 900 900
Strategic Fund, Limited Obligation
Revenue, Whitehall Industries, Inc.,
(AMT), 2.00%, 11/1/20 * 300 300
Strategic Fund, MacArthur, (AMT),
2.00%, 6/1/15 * 2,200 2,200
Strategic Fund, Maco Steel, Inc.,
(AMT), 2.00%, 3/1/24 * 1,765 1,765
Strategic Fund, Merrill Group, (AMT),
2.02%, 10/1/22 * 1,140 1,140
Strategic Fund, Middleville Tool & Die
Project, (AMT), 2.00%, 9/1/13 * 2,500 2,500
Strategic Fund, Patten Monument,
(AMT), 2.00%, 11/1/26 * 780 780
Strategic Fund, Phipps Emmett
Association, (AMT), 2.10%, 12/1/23 * 2,000 2,000
Strategic Fund, Proto-Techniques,
(AMT), 2.00%, 12/1/26 * 2,535 2,535
Strategic Fund, Protomark Corp.
Project, (AMT), 2.00%, 8/1/17 * 400 400
Continued
16
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, SFI Acquisition, Inc.,
(AMT), 2.00%, 2/1/28 * $ 1,080 $ 1,080
Strategic Fund, Solid Waste Disposal,
Grayling Generating, (AMT),
1.87%, 1/1/14 * 3,100 3,100
Strategic Fund, Stegner East Investments
LLC Project, (AMT), 2.00%, 6/1/29 * 3,135 3,135
Strategic Fund, Sunrise Windows, Ltd.,
(AMT), 1.99%, 5/1/13 * 1,060 1,060
Strategic Fund, Thompson Family
Holdings, (AMT), 2.07%, 7/1/28 * 955 955
Strategic Fund, Trenton Forging Co.,
(AMT), 1.98%, 6/1/20 * 1,335 1,335
Strategic Fund, Trio Tool Co., (AMT),
2.00%, 7/1/24 * 1,325 1,325
Strategic Fund, Ultra Tech Printing Co.,
(AMT), 2.00%, 8/1/23 * 1,190 1,190
Strategic Fund, Waltec American
Forging, (AMT), 2.00%, 10/1/09 * 1,700 1,700
Strategic Fund, Warren Screw Products,
Inc., (AMT), 2.00%, 9/1/16 * 500 500
Strategic Fund, Waterland, (AMT),
2.30%, 6/1/25 * 1,000 1,000
Strategic Fund, Wayne Disposal,
(AMT), 1.92%, 3/1/05 * 2,490 2,490
Strategic Fund, Wright K Technology,
Inc., (AMT), 2.07%, 5/1/17 * 645 645
Strategic Fund, YMCA Detroit Project,
1.94%, 5/1/31 * 1,000 1,000
Strategic Fund, YMCA Metropolitan
Detroit Project, 1.85%, 11/1/33 * 200 200
Traverse City Area Public Schools,
7.25%, 5/1/05 950 964
Tri County Area School District,
2.00%, 5/1/05 610 610
Underground Storage Tank Financial
Assurance Authority, Series I,
6.00%, 5/1/05 4,000 4,045
University of Michigan Hospital
Revenue, Series A, 1.90%, 12/1/19 * 1,435 1,435
University of Michigan, Series A-2,
1.90%, 12/1/24 * 1,500 1,500
Vicksburg Community Schools,
2.00%, 5/1/05 250 250
Warren Economic Development Corp.,
Limited Obligation, CMX Corp.,
(AMT), 1.65%, 3/15/07 * 750 750
Washtenaw County, Lyndon & Sylvan
Township Sewer Disposal,
2.50%, 5/1/05 325 326
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Wayne Charter County, Airport
Revenue, Detroit Metropolitan,
Series D, 5.25%, 12/1/05 $ 1,035 $ 1,059
Willow Run Community Schools,
4.75%, 5/1/05 500 504
Zeeland Hospital Finance Authority
Revenue, 1.90%, 9/1/31 * 3,000 3,000
-------------
171,418
-------------
PUERTO RICO (2.5%)
Industrial Medical & Environmental
Pollution Control, Facilities Financing
Authority, Abbott Laboratories,
1.30%, 3/1/23 * 4,695 4,695
-------------
TOTAL MUNICIPAL BONDS 176,113
-------------
MONEY MARKETS (0.3%)
AIM Tax Free Money Market Fund 6,627 7
Dreyfus Tax Exempt Money
Market Fund 94,159 94
Goldman Sachs Financial Tax Free
Money Market Fund 530,440 530
Merrill Lynch Institutional Tax Exempt
Fund 2,667 3
-------------
TOTAL MONEY MARKETS 634
-------------
TOTAL INVESTMENTS
(COST $188,747)(a) - 99.9% 188,747
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 263
-------------
NET ASSETS - 100.0% $ 189,010
=============
See notes to schedule of portfolio investments
and notes to financial statements.
17
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER (5.1%)
ARIZONA (2.6%)
Mesa, 1.89%, 4/5/05 $4,970 $ 4,970
-------------
MICHIGAN (2.5%)
Building Authority, 1.95%, 4/27/05 5,000 5,000
-------------
TOTAL COMMERCIAL PAPER 9,970
-------------
MUNICIPAL BONDS (94.5%)
ARIZONA (0.5%)
Pima County, GO, 4.00%, 7/1/05 1,000 1,008
-------------
COLORADO (8.5%)
Arapahoe County Water and Wastewater
Authority Revenue, Series A,
1.87%, 12/1/33 * 1,500 1,500
Aurora Centretech, Metropolitan District,
Series A, 2.30%, 12/1/28 * 1,000 1,000
Castlewood Ranch Metropolitan District,
2.30%, 12/1/34 * 1,500 1,500
Colorado Springs, Pikes Peak YMCA,
1.85%, 11/1/22 * 800 800
Colorado Springs, Revenue, National
Strength and Condition, 1.95%, 11/1/22 * 665 665
Commerce City, 2.30%, 12/1/31 * 2,290 2,290
Dove Valley Metropolitan District,
Arapahoe County, 1.95%, 5/1/20 * 2,790 2,790
Durango, Revenue, Health and Human
Services, 1.95%, 12/15/14 * 725 725
Educational and Cultural Facility
Authority Revenue, Community
Wireless Park City, 1.88%, 12/1/23 * 765 765
Grand Junction Revenue, 2.00%, 3/1/05 500 500
Holland Creek, 1.85%, 6/1/41 * 740 740
Pinery West Metropolitan District
No. 2, 1.95%, 11/1/32 * 3,200 3,200
-------------
16,475
-------------
FLORIDA (0.9%)
Alachua County Health Facilities
Authority, Health Facilities Revenue,
Shands Teaching Hospital, Series A,
1.91%, 12/1/12 * 1,800 1,800
-------------
GEORGIA (1.6%)
Dekalb County, Development Authority
Revenue, Oglethorpe University,
1.85%, 10/1/29 * 1,000 1,000
Fulton County, Development Authority
Revenue, Holy Innocents Episcopal,
1.85%, 8/1/24 * 2,100 2,100
-------------
3,100
-------------
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
LLINOIS (18.2%)
Development Finance Authority,
1.87%, 4/1/32 * $ 2,000 $ 2,000
Development Finance Authority
Revenue, McCormick Theological,
Series B, 1.87%, 6/1/35 * 2,000 2,000
Development Finance Authority
Revenue, St. Anne Place Project,
1.98%, 6/1/22 * 3,170 3,170
Development Finance Authority, WTVP
Channel 47, Series A, Lake County
Family YMCA, 1.90%, 9/1/22 * 3,650 3,650
Educational Facilities Authority, Field
Museum of Natural History,
1.85%, 11/1/25 * 4,900 4,900
Galesburg, Knox College, 1.85%, 7/1/24 * 2,400 2,400
Health Facilities Authority, 1.85%, 1/1/16 * 3,000 3,000
Hopedale, Industrial Development,
Hopedale Medical Foundation,
1.88%, 5/1/09 * 940 940
Lake County, Warren Township High
School District No. 121, 3.00%, 3/1/05 105 105
Lake Villa, Allendale Association,
1.92%, 10/1/26 * 4,835 4,835
Macon County, Millikin University,
1.89%, 10/1/31 * 1,300 1,300
Peoria, Peoria Academy, 1.95%, 9/1/26 * 4,400 4,400
Springfield Community Improvement,
1.87%, 12/1/25 * 1,000 1,000
Winnebago County Health Care Facility
Revenue, Crusader Clinic, 1.88%, 1/1/17 * 1,270 1,270
-------------
34,970
-------------
INDIANA (8.3%)
Crawfordsville, Economic Development,
Autumn Woods Apartments, Series A,
1.88%, 1/1/30 * 3,381 3,381
Dekko Foundation Educational Facilities
Revenue, Series I, 2.05%, 4/1/21 * 650 650
Development Financial Authority,
Mental Health, 1.95%, 12/1/22 * 3,600 3,600
Development Financial Authority,
Regional Council of Carpenters,
1.97%, 9/1/31 * 1,420 1,420
Greenfield, Economic Development,
2.13%, 9/1/05 * 140 140
Healthcare Facilities Revenue, Southern,
Indiana Rehabilitation Hospital,
1.95%, 4/1/20 * 1,750 1,750
Indianapolis, State Development Finance
Authority, Lutheran Educational
Facilities Project, 1.95%, 10/1/17 * 2,555 2,555
Continued
18
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Saint Joseph County, Economic
Development Revenue, 1.95%, 6/1/22 * $2,600 $ 2,600
-------------
16,096
-------------
IOWA (0.9%)
Financial Authority, Diocese of Sioux
City, 1.85%, 3/1/19 * 1,740 1,740
-------------
LOUISIANA (0.5%)
Local Government Environmental
Facilities, Community Development
Revenue, Northwestern State
University Student Housing,
1.92%, 8/1/34 * 1,000 1,000
-------------
MARYLAND (0.9%)
Baltimore County Economic
Development Revenue, Garrison
Forest School Project, 1.91%, 6/1/26 * 1,800 1,800
-------------
MICHIGAN (14.5%)
Hospital Finance Authority, St. John
Hospital & Medical Center,
5.00%, 5/15/05 1,000 1,010
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A,
1.92%, 3/1/14 * 2,200 2,200
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A,
1.92%, 3/1/30 * 2,100 2,100
Jackson County Economic Development
Corp., Limited Obligation Revenue,
Vista Grande Villa, Series A,
1.89%, 11/1/31 * 2,640 2,640
Mancelona Area Water, Sewer Authority,
Water Supply Systems Revenue,
1.92%, 4/1/21 * 300 300
Marquette City Hospital Finance,
Marquette General Hospital Group,
1.85%, 7/1/09 * 3,000 3,000
Southfield Economic Development,
Lawrence Technical University Project,
1.85%, 10/1/31 * 3,000 3,000
Strategic Fund, Limited Obligation
Revenue, Detroit Symphony Project,
Series B, 1.90%, 6/1/31 * 1,300 1,300
Strategic Fund, Limited Obligation
Revenue, Lansing Saint Vincent Home
Project, 1.85%, 8/1/28 * 5,445 5,445
Strategic Fund, Lions Bear Lake Camp
Project, 1.97%, 8/1/32 * 1,110 1,110
Strategic Fund, YMCA Metropolitan
Detroit Project, 1.85%, 11/1/33 * 200 200
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
University of Michigan, Medical Service
Plan, Series A-1, 1.90%, 12/1/21 * $ 3,830 $ 3,830
University of Michigan, Series A-2,
1.90%, 12/1/24 * 2,000 2,000
-------------
28,135
-------------
MINNESOTA (3.8%)
Lauderdale, Children's Home Society,
2.00%, 12/1/30 * 1,105 1,105
Minneapolis, Minnehaha Academy
Project, 2.00%, 5/1/26 * 3,600 3,600
Roseville Health Care Facilities
Revenue, Presbyterian Homes Project,
1.95%, 10/1/29 * 2,730 2,730
-------------
7,435
-------------
MISSOURI (3.4%)
State Health & Educational Facilities
Authority, Drury University,
1.95%, 8/15/28 * 1,775 1,775
State Health & Educational Facilities
Authority, Missouri Valley College,
1.95%, 10/1/31 * 1,700 1,700
State Public Utilities Revenue,
2.75%, 10/1/05 3,000 3,019
-------------
6,494
-------------
NORTH CAROLINA (0.5%)
Lee County Industrial Facilities &
Pollution Control Funding Authority
Revenue, Trion, Inc. Project,
1.96%, 11/1/11 * 1,000 1,000
-------------
OHIO (9.5%)
Butler County, Bond Anticipation
Notes, Series A, GO, 2.00%, 3/11/05 500 500
Butler County, Healthcare Facilities,
1.85%, 5/1/27 * 1,000 1,000
Columbiana County, Revenue, East
Liverpool, 1.92%, 10/1/23 * 4,500 4,500
Coshocton County, Hospital Revenue,
1.95%, 3/1/14 * 210 210
Higher Education, Capital Facilities
Revenue, Series II-A, 5.25%, 12/1/05 2,000 2,051
Independence, Economic Development
Revenue, 1.92%, 12/1/16 * 2,130 2,130
Montgomery County, Economic
Development, Benjamin & Marian Arts
Center, Series A, 1.92%, 4/1/11 * 2,000 2,000
Montgomery County, Economic
Development, The Dayton Art Institute,
1.90%, 5/1/26 * 1,400 1,400
Montgomery County, Health Care
Facilities, Community Blood Center,
1.95%, 12/1/20 * 1,685 1,685
Continued
19
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
State Higher Education Facilities Revenue,
Ashland University Project,
1.89%, 9/1/24 * $ 2,000 $ 2,000
Summit County, Industrial Development
Revenue, SSP Fittings Corporate
Project, 1.95%, 9/1/11 * 1,020 1,020
-------------
18,496
-------------
PENNSYLVANIA (12.5%)
Allegheny County, Industrial
Development Authority Revenue, Sacred
Heart High School, 1.92%, 6/1/22 * 1,200 1,200
Allegheny County, Industrial Development
Authority Revenue, Sewickley Academy,
Series A, 1.92%, 11/1/22 * 1,100 1,100
Allentown Commercial & Industrial
Development, Diocese of Allentown,
1.86%, 12/1/29 * 6,550 6,550
Chester County, Industrial Development
Authority Revenue, Archdiocese of
Philadelphia, 1.86%, 7/1/31 * 3,670 3,670
Higher Educational Facilities Authority
Revenue, Association of Independent
Colleges, Series F1, 1.84%, 5/1/20 * 1,700 1,700
North Wales Water Authority,
2.75%, 10/1/05 2,000 2,013
Philadelphia Authority for Industrial
Development Revenues, Newcourtland
Elderly Services Project, 1.86%, 3/1/27 * 7,925 7,925
-------------
24,158
-------------
SOUTH CAROLINA (0.1%)
York County School District #4, Fort
Mill, Series B, 3.00%, 3/1/05 230 230
-------------
TENNESSEE (0.9%)
Clarksville, Public Building Authority
Revenue, Pooled Funding, Municipal
Bond Fund, 1.92%, 1/1/33 * 700 700
Clarksville, Public Building Authority
Revenue, Pooled Funding, Municipal
Bond Fund, 1.92%, 7/1/34 * 1,000 1,000
-------------
1,700
-------------
TEXAS (2.9%)
Corpus Christi, 4.00%, 3/1/05 1,200 1,203
Corsicana Independent School District,
2.00%, 2/15/05 280 280
Harlingen, GO, 4.65%, 2/15/05 150 150
State Tax & Revenue, 3.00%, 8/31/05 4,000 4,032
-------------
5,665
-------------
UTAH (1.4%)
Salt Lake County Training Facilities
Revenue, Community Foundation
Disabled Project, 1.95%, 8/1/30 * 1,540 1,540
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
UTAH, CONTINUED
Weber County Industrial Revenue,
Enable Industries, Inc., 1.95%, 12/1/15 * $1,095 $ 1,095
-------------
2,635
-------------
WASHINGTON (4.5%)
Bremerton Revenue, 1.90%, 12/1/28 * 3,100 3,100
Health Care Facilities Authority Revenue,
Inland Northwest Blood,
1.90%, 8/1/26 * 4,140 4,140
Richland Gold Enterprises Revenue,
1.85%, 12/1/21 * 1,400 1,400
-------------
8,640
-------------
WISCONSIN (0.2%)
State Transportation Revenue, Series A,
4.50%, 7/1/05 200 202
Wilmot Union High School District,
Series B, 2.00%, 3/1/05 225 225
-------------
427
-------------
TOTAL MUNICIPAL BONDS 183,004
-------------
MONEY MARKETS (0.3%)
AIM Tax Free Money Market Fund 19,414 19
Dreyfus Tax Exempt Money Market Fund 252,745 253
Goldman Sachs Financial Tax Free
Money Market Fund 274,594 275
-------------
TOTAL MONEY MARKETS 547
-------------
TOTAL INVESTMENTS (COST $193,521)(a) - 99.9% 193,521
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 212
-------------
NET ASSETS - 100.0% $ 193,733
=============
NOTES TO SCHEDULES OF
PORTFOLIO INVESTMENTS
* Variable rate security. Rate presented represents the rate in effect at
January 31, 2005. Maturity date reflects the actual maturity date.
** Effective yield at purchase.
a) Also represents cost for federal income tax purposes.
b) Proceeds at maturity range from $15,781 to $225,015. 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.
20
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FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2005 (UNAUDITED)
(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 $1,284,876 $ 980,541 $419,716
Repurchase agreements, at cost 166,876 113,621 128,759
---------- ---------- --------
Total Investments, at value 1,451,752 1,094,162 548,475
Cash -- --^ 1
Interest receivable 5,419 5,766 1,871
Receivable from Advisor and affiliates 5 10 9
Prepaid expenses and other assets 75 40 34
---------- ---------- --------
Total Assets 1,457,251 1,099,978 550,390
---------- ---------- --------
Liabilities:
Payable to Custodian 11 -- --
Distributions payable 2,116 1,992 952
Payable for investments purchased 10,025 10,025 --
Accrued expenses and other payables:
Payable to Advisor and affiliates 515 116 63
Distribution and administrative
services fees 89 11 59
Other 68 13 40
---------- ---------- --------
Total Liabilities 12,824 12,157 1,114
---------- ---------- --------
Net Assets:
Paid-in Capital $1,444,352 $1,087,793 $ 549,268
Accumulated net investment income 75 28 8
Accumulated net realized loss
from investment transactions -- -- --
---------- ---------- --------
Net Assets $1,444,427 $1,087,821 $549,276
========== ========== ========
Net Assets:
Institutional Shares $1,037,877 $1,024,172 $183,725
Class A Shares 403,151 NA NA
Class B Shares 1,442 NA NA
Class C Shares 1,889 NA NA
Advisor Shares 68 NA NA
Select Shares NA 13,146 3,358
Preferred Shares NA 33,141 237,317
Trust Shares NA 17,362 124,876
---------- ---------- --------
Total $1,444,427 $1,087,821 $549,276
========== ========== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 1,037,864 1,024,145 183,722
Class A Shares 403,131 NA NA
Class B Shares 1,441 NA NA
Class C Shares 1,889 NA NA
Advisor Shares 68 NA NA
Select Shares NA 13,146 3,358
Preferred Shares NA 33,140 237,315
Trust Shares NA 17,362 124,875
---------- ---------- --------
Total 1,444,393 1,087,793 549,270
========== ========== ========
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
========== ========== ========
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2005 (UNAUDITED)
(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 $301,056 $ 345,106 $188,747 $193,521
Repurchase agreements, at cost -- 1,010,780 -- --
-------- ---------- -------- --------
Total Investments, at value 301,056 1,355,886 188,747 193,521
Cash --^ --^ -- --
Interest receivable 892 2,033 558 468
Receivable from Advisor and affiliates -- 9 2 4
Prepaid expenses and other assets 28 70 8 24
-------- ---------- -------- --------
Total Assets 301,976 1,357,998 189,315 194,017
-------- ---------- -------- --------
Liabilities:
Payable to Custodian -- -- -- --
Distributions payable 406 2,106 221 221
Payable for investments purchased -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 106 139 72 45
Distribution and administrative
services fees 19 139 --^ 5
Other 20 106 12 13
-------- ---------- -------- --------
Total Liabilities 551 2,490 305 284
-------- ---------- -------- --------
Net Assets:
Paid-in Capital $301,415 $1,355,662 $189,006 $193,736
Accumulated net investment income 16 -- 4 2
Accumulated net realized loss
from investment transactions (6) (154) -- (5)
-------- ---------- -------- --------
Net Assets $301,425 $1,355,508 $189,010 $193,733
======== ========== ======== ========
Net Assets:
Institutional Shares $190,950 $ 335,090 $188,941 $165,607
Class A Shares 110,475 NA 69 25,154
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 64,448 NA 38
Preferred Shares NA 825,360 NA 35
Trust Shares NA 130,610 NA 2,899
-------- ---------- -------- --------
Total $301,425 $1,355,508 $189,010 $193,733
======== ========== ======== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 191,001 335,025 188,886 165,603
Class A Shares 110,533 NA 69 25,166
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 64,447 NA 38
Preferred Shares NA 825,341 NA 35
Trust Shares NA 130,607 NA 2,899
-------- ---------- -------- --------
Total 301,534 1,355,420 188,955 193,741
======== ========== ======== ========
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
======== ========== ======== ========
- --------------
(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.
See notes to financial statements
22-23 spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
Prime Institutional Institutional
Money Market Money Market Government Money
Fund Fund Market Fund
-------------- -------------- ----------------
Investment Income:
Interest income $14,555 $10,611 $5,722
Dividend income 194 174 52
------- ------- ------
Total Investment Income 14,749 10,785 5,774
------- ------- ------
Expenses:
Investment advisory fees 3,060 2,257 1,242
Administrative fees 1,328 976 537
Distribution services fees--Class A Shares 495 NA NA
Distribution services fees--Class B Shares 8 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 6 3
Administrative services fees--Preferred Shares NA 33 209
Administrative services fees--Trust Shares NA 25 134
Accounting fees 143 112 77
Transfer and dividend disbursing agent fees 180 129 77
Custody fees 33 22 19
Trustees' fees and expenses 17 10 6
Other expenses 179 101 76
------- ------- ------
Total expenses 5,454 3,671 2,380
------- ------- ------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (804) (2,382) (1,360)
Transfer and dividend disbursing agent
fees waived (4) (3) (3)
Distribution services--Class A Shares,
Class B Shares, Class C Shares
and Advisor Shares waived (2) -- --
------- ------- ------
Net Expenses 4,644 1,286 1,017
------- ------- ------
Net Investment Income 10,105 9,499 4,757
------- ------- ------
Net realized gains on investment transactions -- -- --
------- ------- ------
Change in net assets resulting from operations $10,105 $9,499 $4,757
======= ======= ======
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED)
(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 $2,624 $13,679 $1,582 $1,425
Dividend income 91 86 39 26
------ ------- ------ ------
Total Investment Income 2,715 13,765 1,621 1,451
------ ------- ------ ------
Expenses:
Investment advisory fees 594 3,182 398 464
Administrative fees 257 1,376 172 166
Distribution services fees--Class A Shares 137 NA --^ 32
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 34 NA --^
Administrative services fees--Preferred Shares NA 723 NA --^
Administrative services fees--Trust Shares NA 184 NA 2
Accounting fees 37 138 28 44
Transfer and dividend disbursing agent fees 41 182 26 35
Custody fees 14 54 10 13
Trustees' fees and expenses 4 17 2 2
Other expenses 40 197 25 26
------ ------- ------ ------
Total expenses 1,124 6,087 661 784
------ ------- ------ ------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (134) (3,417) (123) (397)
Transfer and dividend disbursing agent
fees waived (1) (3) --^ (1)
Distribution services--Class A Shares,
Class B Shares, Class C Shares
and Advisor Shares waived (27) -- --^ --
------ ------- ------ ------
Net Expenses 962 2,667 538 386
------ ------- ------ ------
Net Investment Income 1,753 11,098 1,083 1,065
------ ------- ------ ------
Net realized gains on investment transactions -- 4 -- --
------ ------- ------ ------
Change in net assets resulting from operations $1,753 $11,102 $1,083 $1,065
====== ======= ====== ======
^ Amount is less than five hundred dollars.
See notes to financial statements
24-25 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
Prime Institutional
Money Market Money Market
Fund Fund
-------------------------- ---------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2005 (a) 2004 2005 (a) 2004 (b)
----------- ----------- ----------- -----------
Change in Net Assets:
Operations:
Net investment income $ 10,105 $ 10,139 $ 9,499 $ 8,935
Net realized gains on investment transactions -- 30 -- 14
----------- ----------- ----------- -----------
Change in net assets resulting from operations 10,105 10,169 9,499 8,949
----------- ----------- ----------- -----------
Distributions to shareholders:
Institutional Shares (7,827) (8,538) (8,882) (8,709)
Class A Shares (2,278) (1,594) NA NA
Class B Shares (4) (4) NA NA
Class C Shares (6) (3) NA NA
Advisor Shares --^ --^ NA NA
Select Shares NA NA (126) (60)
Preferred Shares NA NA (348) (97)
Trust Shares NA NA (144) (69)
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (10,115) (10,139) (9,500) (8,935)
----------- ----------- ----------- -----------
Change in net assets from
fund share transactions (12,139) (548,372) (19,850) 341,635
----------- ----------- ----------- -----------
Change in net assets (12,149) (548,342) (19,851) 341,649
Net Assets:
Beginning of period 1,456,576 2,004,918 1,107,672 766,023
----------- ----------- ----------- -----------
End of period $ 1,444,427 $ 1,456,576 $ 1,087,821 $ 1,107,672
=========== =========== =========== ===========
Accumulated Net Investment Income/(Loss) $ 75 $ 85 $ 28 $ 29
=========== =========== =========== ===========
Institutional Government Government
Money Market Money Market
Fund Fund
-------------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2005 (a) 2004 (b) 2005 (a) 2004
----------- ----------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 4,757 $ 4,419 $ 1,753 $ 1,524
Net realized gains on investment transactions -- 1 -- 89
----------- ----------- ---------- ----------
Change in net assets resulting from operations 4,757 4,420 1,753 1,613
----------- ----------- ---------- ----------
Distributions to shareholders:
Institutional Shares (1,884) (2,186) (1,164) (1,109)
Class A Shares NA NA (573) (370)
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares (49) (40) NA NA
Preferred Shares (2,052) (1,740) NA NA
Trust Shares (771) (453) NA NA
----------- ----------- ---------- ----------
Change in net assets from
shareholder distributions (4,756) (4,419) (1,737) (1,479)
----------- ----------- ---------- ----------
Change in net assets from
fund share transactions (26,422) (41,303) 17,391 (168,613)
----------- ----------- ---------- ----------
Change in net assets (26,421) (41,302) 17,407 (168,479)
Net Assets:
Beginning of period 575,697 616,999 284,018 452,497
----------- ----------- ---------- ----------
End of period $ 549,276 $ 575,697 $ 301,425 $ 284,018
=========== =========== ========== ==========
Accumulated Net Investment Income/(Loss) $ 8 $ 7 $ 16 $ --
=========== =========== ========== ==========
U.S. Treasury Michigan Municipal Municipal
Money Market Money Market Money Market
Fund Fund Fund
-------------------------- ---------------------- --------------------------
Six Months Year Six Months Year Six Months Year
ended ended ended ended ended ended
January 31, July 31, January 31, July 31, January 31, July 31,
2005 (a) 2004 (b) 2005 (a) 2004 2005 (a) 2004 (b)
----------- ----------- --------- ---------- ----------- -----------
Change in Net Assets:
Operations:
Net investment income $ 11,098 $ 12,149 $ 1,083 $ 1,271 $ 1,065 $ 1,382
Net realized gains on
investment transactions 4 27 -- -- -- 12
----------- ----------- --------- ---------- ----------- -----------
Change in net assets resulting
from operations 11,102 12,176 1,083 1,271 1,065 1,394
----------- ----------- --------- ---------- ----------- -----------
Distributions to shareholders:
Institutional Shares (3,009) (5,196) (1,069) (1,271) (934) (1,226)
Class A Shares NA NA --^ --^ (117) (142)
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 (621) (476) NA NA (3) (5)
Preferred Shares (6,524) (5,778) NA NA (2) (1)
Trust Shares (944) (699) NA NA (7) (10)
----------- ----------- --------- ---------- ----------- -----------
Change in net assets from
shareholder distributions (11,098) (12,149) (1,069) (1,271) (1,063) (1,384)
----------- ----------- --------- ---------- ----------- -----------
Change in net assets from
fund share transactions (405,289) 115,861 (8,247) (50,581) 38,095 (96,892)
----------- ----------- --------- ---------- ----------- -----------
Change in net assets (405,285) 115,888 (8,233) (50,581) 38,097 (96,882)
Net Assets:
Beginning of period 1,760,793 1,644,905 197,243 247,824 155,636 252,518
----------- ----------- --------- ---------- ----------- -----------
End of period $ 1,355,508 $ 1,760,793 $ 189,010 $ 197,243 $ 193,733 $ 155,636
=========== =========== ========= ========== =========== ===========
Accumulated Net Investment Income/(Loss) $ -- $ -- $ 4 $ (10) $ 2 $ --
=========== =========== ========= ========== =========== ===========
- ---------------
(a) Unaudited.
(b) 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.
See notes to financial statements
26-27 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED-- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
Prime Institutional Institutional Government
Money Market Fund Money Market Money Market
Fund Fund Fund
------------------------ ------------------------ ----------------------
Six Months Year Six Months Year Six Months Year
ended ended ended ended ended ended
January 31, July 31, January 31, July 31, January 31, July 31,
2005 (a) 2004 2005 (a) 2004 (b) 2005 (a) 2004 (b)
---------- ---------- ---------- ---------- -------- ----------
Share Transactions:*
Institutional Shares
Shares issued 1,463,162 2,769,748 2,188,237 3,760,386 927,905 1,244,240
Dividends reinvested 715 786 3,778 3,555 256 378
Shares redeemed (1,490,615) (3,271,523) (2,217,450) (3,480,370) (968,287) (1,637,764)
---------- ---------- ---------- ---------- -------- ----------
Total Institutional Shares (26,738) (500,989) (25,435) 283,571 (40,126) (393,146)
---------- ---------- ---------- ---------- -------- ----------
Class A Shares
Shares issued 169,663 304,072 NA NA NA NA
Dividends reinvested 1,939 1,542 NA NA NA NA
Shares redeemed (155,872) (354,892) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Total Class A Shares 15,730 (49,278) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Class B Shares
Shares issued 389 1,096 NA NA NA NA
Dividends reinvested 3 4 NA NA NA NA
Shares redeemed (602) (1,875) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Total Class B Shares (210) (775) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Class C Shares
Shares issued 56 5,367 NA NA NA NA
Dividends reinvested 5 2 NA NA NA NA
Shares redeemed (1,015) (2,680) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Total Class C Shares (954) 2,689 NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Advisor Shares
Shares issued 55 62 NA NA NA NA
Dividends reinvested --^ --^ NA NA NA NA
Shares redeemed (23) (88) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Total Advisor Shares 32 (26) NA NA NA NA
---------- ---------- ---------- ---------- -------- ----------
Select Shares
Shares issued NA NA 36,049 46,190 62,964 68,664
Dividends reinvested NA NA 80 41 9 --^
Shares redeemed NA NA (36,250) (32,964) (64,817) (63,462)
---------- ---------- ---------- ---------- -------- ----------
Total Select Shares NA NA (121) 13,267 (1,844) 5,202
---------- ---------- ---------- ---------- -------- ----------
Preferred Shares
Shares issued NA NA 166,861 109,370 512,628 1,186,580
Dividends reinvested NA NA 225 66 701 590
Shares redeemed NA NA (161,152) (82,230) (552,386) (910,798)
---------- ---------- ---------- ---------- -------- ----------
Total Preferred Shares NA NA 5,934 27,206 (39,057) 276,372
---------- ---------- ---------- ---------- -------- ----------
Trust Shares
Shares issued NA NA 63,475 90,278 203,484 861,501
Dividends reinvested NA NA 129 54 127 32
Shares redeemed NA NA (63,833) (72,741) (149,005) (791,264)
---------- ---------- ---------- ---------- -------- ----------
Total Trust Shares NA NA (229) 17,591 54,606 70,269
---------- ---------- ---------- ---------- -------- ----------
Government U.S. Treasury Michigan Municipal Municipal
Money Market Money Market Money Market Money Market
Fund Fund Fund Fund
--------------------- ----------------------- ----------------------- -----------------------
Six Months Year Six Months Year Six Months Year Six Months Year
ended ended ended ended ended ended ended ended
January 31, July 31, January 31, July 31, January 31, July 31, January 31, July 31,
2005 (a) 2004 2005 (a) 2004 (b) 2005 (a) 2004 2005 (a) 2004 (b)
---------- -------- ---------- ---------- ---------- ---------- ----------- --------
Share Transactions:*
Institutional Shares
Shares issued 213,252 380,768 678,119 1,990,678 207,230 413,265 247,481 422,435
Dividends reinvested 8 32 144 342 376 509 50 92
Shares redeemed (196,186) (482,127) (742,368) (3,236,738) (215,904) (464,354) (218,225) (485,670)
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Institutional
Shares 17,074 (101,327) (64,105) (1,245,718) (8,298) (50,580) 29,306 (63,143)
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Class A Shares
Shares issued 51,111 164,601 NA NA 54 209 69,992 120,106
Dividends reinvested 430 332 NA NA --^ -- 100 141
Shares redeemed (51,225) (232,219) NA NA (3) (210) (62,531) (155,739)
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Class A Shares 316 (67,286) NA NA 51 (1) 7,561 (35,492)
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Class B Shares
Shares issued NA NA NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA NA NA
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Class B Shares NA NA NA NA NA NA NA NA
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Class C Shares
Shares issued NA NA NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA NA NA
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Class C Shares NA NA NA NA NA NA NA NA
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Advisor Shares
Shares issued NA NA NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA NA NA
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Advisor Shares NA NA NA NA NA NA NA NA
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Select Shares
Shares issued NA NA 355,832 566,393 NA NA 690 15,021
Dividends reinvested NA NA --^ --^ NA NA 3 1
Shares redeemed NA NA (384,616) (473,162) NA NA (1,518) (14,159)
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Select Shares NA NA (28,784) 93,231 NA NA (825) 863
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Preferred Shares
Shares issued NA NA 1,144,346 3,405,308 NA NA 5 637
Dividends reinvested NA NA 983 632 NA NA 2 --^
Shares redeemed NA NA (1,422,936) (2,302,992) NA NA (609) --^
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Preferred Shares NA NA (277,607) 1,102,948 NA NA (602) 637
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Trust Shares
Shares issued NA NA 293,077 1,327,544 NA NA 4,921 17,815
Dividends reinvested NA NA 14 2 NA NA 4 --^
Shares redeemed NA NA (327,883) (1,162,147) NA NA (2,270) (17,571)
---------- -------- ---------- ---------- ---------- ---------- -------- --------
Total Trust Shares NA NA (34,792) 165,399 NA NA 2,655 244
---------- -------- ---------- ---------- ---------- ---------- -------- --------
- --------------
(a) Unaudited.
(b) 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.
28-29 spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 January 31, 2005, 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
30
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
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, 0.17% of the average
daily net assets of the Trust between $2 billion and $15 billion, and 0.15% of
more than $15 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 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
31
FIFTH THIRD FUNDS NOTES TO FINANCIAL
STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
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 29, 2004
through January 31, 2005, 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
Advisor Shares 1.04% NA
Amount subject to recoupment
expiring on November 28, 2005. $250 $41
For the period from October 20, 2003 through January 31, 2005, the expense
limits currently in place and the cumulative reimbursement that may potentially
be made by the Funds is as follows (Amounts in thousands):
INSTITUTIONAL
INSTITUTIONAL GOVERNMENT U.S. TREASURY MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
----------- -------------- ------------ ------------
Institutional Shares 0.21% 0.21% 0.21% 0.38%
Class A Shares NA NA NA 0.63%
Select Shares 0.29% 0.29% 0.29% 0.46%
Preferred Shares 0.36% 0.36% 0.36% 0.53%
Trust Shares 0.46% 0.46% 0.46% 0.63%
Amount subject to recoupment
expiring on November 30, 2005. $5,211 $3,064 $8,621 $990
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 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.
32
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
TRANSFER AND DIVIDEND DISBURSING AGENT--Fifth Third served as transfer and
dividend disbursing agent for the period prior to October 1, 2004. Transfer
Agent fees for the period from August 1, 2004 through October 31, 2004 were
computed at 0.0225% of the average daily net assets of each Funds' shares. In
addition, there was an annual fee of $7,500 per additional class of shares per
Fund. Effective October 1, 2004, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"),
a wholly owned subsidiary of The BISYS Group, Inc., began serving as transfer
and dividend disbursing agent. Pursuant to a separate agreement, BISYS Ohio
retained the Advisor to perform certain services for the Trust and each
investment portfolio of the Trust, for which the Advisor will receive a fee from
BISYS Ohio computed as a percentage of the average daily net assets of each
Fund. Effective November 1, 2004, transfer agent fees are computed at 0.0195% of
the average daily net assets of each Funds' shares up to $700 million, 0.017% of
the average daily net assets of each Funds' shares between $700 million and $1
billion, 0.0155% of the average daily assets of each Fund's shares between $1
billion and $2 billion and 0.013% of more than $2 billion of the average net
assets of the Prime Money Market Fund, Government Money Market Fund, Michigan
Municipal Money Market Fund and the Municipal Money Market Fund. For the
Institutional Money Market Fund, Institutional Government Money Market Fund and
the U.S. Treasury Money Market Fund, transfer agent fees are computed at 0.0185%
of the average daily net assets of each Funds' shares up to $700 million, 0.017%
of the average daily net assets of each Funds' shares between $700 million and
$1 billion, 0.0155% of the average daily net assets of each Funds' shares
between $1 billion and $2 billion and 0.0125% of more than $2 billion of the
average daily net assets of each Funds' shares. In addition, there is an annual
fee of $3,000 per additional class of shares per Fund.
ACCOUNTING AND CUSTODY FEES--Fifth Third 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. 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
Ohio performs 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 period ended January 31, 2005, there were no
borrowings against the line of credit.
(5) 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.
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)
Six months ended 1/31/05+ $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 --^ --^ --^
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
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 --^ --^ --^
Six months ended 1/31/05+ $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 --^ --^ --^
Six months ended 1/31/05+ $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 --^ --^ --^
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
NET ASSET ASSETS, TO INVESTMENT TO
VALUE, END OF AVERAGE INCOME AVERAGE
END OF TOTAL PERIOD NET TO AVERAGE NET
PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
===================================================================================================================================
PRIME MONEY MARKET FUND INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 5.53% $ 508,414 0.52% 5.44% 0.62%
Year ended 7/31/01 $1.00 5.41% $ 802,176 0.53% 5.11% 0.63%
Year ended 7/31/02 $1.00 2.02% $ 1,732,204 0.55% 1.86% 0.65%
Year ended 7/31/03 $1.00 1.02% $ 1,565,589 0.54% 1.02% 0.65%
Year ended 7/31/04 $1.00 0.65% $ 1,064,622 0.54% 0.64% 0.66%
Six months ended 1/31/05+ $1.00 0.70%* $ 1,037,877 0.54%** 1.38%** 0.65%**
===================================================================================================================================
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/00 $1.00 5.27% $ 215,082 0.77% 5.29% 0.87%
Year ended 7/31/01 $1.00 5.14% $ 356,091 0.78% 4.86% 0.88%
Year ended 7/31/02 $1.00 1.77% $ 447,556 0.80% 1.71% 0.89%
Year ended 7/31/03 $1.00 0.76% $ 436,687 0.79% 0.77% 0.90%
Year ended 7/31/04 $1.00 0.40% $ 387,424 0.79% 0.40% 0.91%
Six months ended 1/31/05+ $1.00 0.58%* $ 403,151 0.79%** 1.15%** 0.90%**
===================================================================================================================================
PRIME MONEY MARKET FUND CLASS B SHARES
10/11/00(b) to 7/31/01 $1.00 3.10%* $ 1,021 1.53%** 3.63%** 1.63%**
Year ended 7/31/02 $1.00 1.00% $ 1,893 1.55% 0.91% 1.64%
Year ended 7/31/03 $1.00 0.32% $ 2,426 1.22% 0.33% 1.65%
Year ended 7/31/04 $1.00 0.24% $ 1,651 0.95% 0.23% 1.66%
Six months ended 1/31/05+ $1.00 0.25%* $ 1,442 1.43%** 0.50%** 1.65%**
===================================================================================================================================
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 $1.00 0.19%* $ 60 1.54%** 0.48%** 1.71%**
Year ended 7/31/03 $1.00 0.32% $ 154 1.14% 0.32% 1.65%
Year ended 7/31/04 $1.00 0.23% $ 2,843 0.98% 0.25% 1.66%
Six months ended 1/31/05+ $1.00 0.25%* $ 1,889 1.41%** 0.48%** 1.65%**
===================================================================================================================================
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(b) to 7/31/02 $1.00 1.02%* $ 2 0.89%** 1.23%** 0.96%**
Year ended 7/31/03 $1.00 0.53% $ 62 1.02% 0.46% 1.15%
Year ended 7/31/04 $1.00 0.24% $ 36 0.96% 0.26% 1.16%
Six months ended 1/31/05+ $1.00 0.45%* $ 68 1.04%** 0.97%** 1.14%**
===================================================================================================================================
INSTITUTIONAL MONEY MARKET
FUND INSTITUTIONAL SHARES
4/11/00(b) to 12/31/00 $1.00 4.71%* $ 47,944 0.22%** 6.39%** 0.74%**
1/1/01 to 7/31/01(c) $1.00 2.84%* $ 71,778 0.22%** 4.78%** 0.68%**
Year ended 7/31/02 $1.00 2.31% $ 189,530 0.22% 2.11% 0.65%
Year ended 7/31/03 $1.00 1.35% $ 766,023 0.22% 1.24% 0.65%
Year ended 7/31/04 $1.00 0.98% $1,049,608 0.22% 0.98% 0.65%
Six months ended 1/31/05+ $1.00 0.86%* $1,024,172 0.22%** 1.69%** 0.64%**
===================================================================================================================================
INSTITUTIONAL MONEY MARKET
FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.70%* $ 13,267 0.30%** 0.92%** 0.73%**
Six months ended 1/31/05+ $1.00 0.82%* $ 13,146 0.30%** 1.64%** 0.72%**
===================================================================================================================================
INSTITUTIONAL MONEY MARKET
FUND PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.65%* $ 27,206 0.37%** 0.85%** 0.80%**
Six months ended 1/31/05+ $1.00 0.78%* $ 33,141 0.37%** 1.60%** 0.79%**
===================================================================================================================================
INSTITUTIONAL MONEY MARKET
FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.57%* $ 17,591 0.47%** 0.75%** 0.90%**
Six months ended 1/31/05+ $1.00 0.73%* $ 17,362 0.47%** 1.44%** 0.89%**
===================================================================================================================================
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
=========================================================================================================
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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
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 --^ --^ --^
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
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 --^ --^ --^
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
U.S. TREASURY MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
NET ASSET ASSETS, TO INVESTMENT TO
VALUE, END OF AVERAGE INCOME AVERAGE
END OF TOTAL PERIOD NET TO AVERAGE NET
PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
===================================================================================================================================
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/99 $1.00 4.81% $ 215,401 0.37% 4.73% 0.65%
Year ended 12/31/00 $1.00 6.03% $ 309,711 0.39% 5.92% 0.63%
1/1/01 to 7/31/01(c) $1.00 2.71%* $ 410,278 0.40%** 4.56%** 0.63%**
Year ended 7/31/02 $1.00 2.05% $ 425,092 0.41% 2.03% 0.64%
Year ended 7/31/03 $1.00 1.07% $ 616,999 0.40% 1.04% 0.65%
Year ended 7/31/04 $1.00 0.86% $ 223,852 0.31% 0.79% 0.66%
Six months ended 1/31/05+ $1.00 0.83%* $ 183,725 0.22%** 1.65%** 0.65%**
===================================================================================================================================
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.65%* $ 5,202 0.30%** 0.82%** 0.75%**
Six months ended 1/31/05+ $1.00 0.79%* $ 3,358 0.30%** 1.46%** 0.74%**
===================================================================================================================================
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.59%* $ 276,373 0.37%** 0.75%** 0.82%**
Six months ended 1/31/05+ $1.00 0.75%* $ 237,317 0.37%** 1.48%** 0.81%**
===================================================================================================================================
INSTITUTIONAL GOVERNMENT MONEY MARKET
FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.51%* $ 70,270 0.47%** 0.66%** 0.92%**
Six months ended 1/31/05+ $1.00 0.70%* $ 124,876 0.47%** 1.44%** 0.90%**
===================================================================================================================================
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 5.31% $ 211,790 0.57% 5.17% 0.64%
Year ended 7/31/01 $1.00 5.23% $ 238,816 0.55% 5.12% 0.60%
Year ended 7/31/02 $1.00 1.79% $ 279,059 0.65% 1.75% 0.69%
Year ended 7/31/03 $1.00 0.92% $ 275,107 0.61% 0.84% 0.66%
Year ended 7/31/04 $1.00 0.47% $ 173,865 0.62% 0.47% 0.67%
Six months ended 1/31/05+ $1.00 0.63%* $ 190,950 0.57%** 1.25%** 0.66%**
===================================================================================================================================
GOVERNMENT MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/00 $1.00 5.10% $ 264,393 0.77% 4.93% 0.89%
Year ended 7/31/01 $1.00 5.02% $ 248,064 0.75% 4.92% 0.85%
Year ended 7/31/02 $1.00 1.58% $ 270,062 0.85% 1.57% 0.94%
Year ended 7/31/03 $1.00 0.71% $ 177,390 0.81% 0.66% 0.91%
Year ended 7/31/04 $1.00 0.27% $ 110,153 0.82% 0.27% 0.92%
Six months ended 1/31/05+ $1.00 0.53%* $ 110,475 0.77%** 1.05%** 0.91%**
===================================================================================================================================
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 5.40% $ 871,657 0.38% 5.26% 0.62%
Year ended 7/31/01 $1.00 5.30% $ 1,058,407 0.39% 5.08% 0.64%
Year ended 7/31/02 $1.00 1.92% $ 1,143,352 0.41% 1.88% 0.64%
Year ended 7/31/03 $1.00 1.02% $ 1,644,905 0.40% 0.98% 0.65%
Year ended 7/31/04 $1.00 0.80% $ 399,195 0.30% 0.74% 0.65%
Six months ended 1/31/05+ $1.00 0.78%* $ 335,090 0.22%** 1.53%** 0.65%**
===================================================================================================================================
U.S. TREASURY MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.59%* $ 93,233 0.30%** 0.76%** 0.73%**
Six months ended 1/31/05+ $1.00 0.73%* $ 64,448 0.30%** 1.44%** 0.72%**
===================================================================================================================================
U.S. TREASURY MONEY MARKET FUND PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.54%* $ 1,102,963 0.37%** 0.69%** 0.80%**
Six months ended 1/31/05+ $1.00 0.70%* $ 825,360 0.37%** 1.35%** 0.80%**
===================================================================================================================================
U.S. TREASURY MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.46%* $ 165,402 0.47%** 0.58%** 0.90%**
Six months ended 1/31/05+ $1.00 0.65%* $ 130,610 0.47%** 1.28%** 0.90%**
===================================================================================================================================
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
VALUE, NET GAINS/ DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
=========================================================================================================
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)
Six months ended 1/31/05+ $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 --^ -- --^
Six months ended 1/31/05+ $1.00 --^ -- --^
=========================================================================================================
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 0.04 -- (0.04)
Year ended 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 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/00 $1.00 0.03 -- (0.03)
Year ended 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 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
Six months ended 1/31/05+ $1.00 --^ -- --^
=========================================================================================================
MUNICIPAL MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
MUNICIPAL MONEY MARKET FUND PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
=========================================================================================================
MUNICIPAL MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
Six months ended 1/31/05+ $1.00 --^ -- --^
=========================================================================================================
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
NET ASSET ASSETS, TO INVESTMENT TO
VALUE, END OF AVERAGE INCOME AVERAGE
END OF TOTAL PERIOD NET TO AVERAGE NET
PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
===================================================================================================================================
MICHIGAN MUNICIPAL MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/99 $1.00 2.86% $ 292,619 0.53% 2.82% 0.63%
Year ended 12/31/00 $1.00 3.73% $ 295,219 0.53% 3.67% 0.62%
1/1/01 to 7/31/01(c) $1.00 1.71%* $ 317,543 0.54%** 2.93%** 0.63%**
Year ended 7/31/02 $1.00 1.41% $ 292,618 0.54% 1.41% 0.65%
Year ended 7/31/03 $1.00 0.88% $ 247,805 0.54% 0.88% 0.67%
Year ended 7/31/04 $1.00 0.59% $ 197,225 0.54% 0.59% 0.67%
Six months ended 1/31/05+ $1.00 0.54%* $ 188,941 0.54%** 1.09%** 0.66%**
===================================================================================================================================
MICHIGAN MUNICIPAL MONEY MARKET
FUND CLASS A SHARES
Year ended 12/31/99 $1.00 2.86% $ 658 0.53% 2.82% 0.63%
Year ended 12/31/00 $1.00 3.70% $ 160 0.54% 3.44% 0.63%
1/1/01 to 7/31/01(c) $1.00 1.57%* $ 215 0.79%** 2.67%** 0.88%**
Year ended 7/31/02 $1.00 1.25% $ 177 0.70% 1.26% 0.91%
Year ended 7/31/03 $1.00 0.78% $ 19 0.64% 0.90% 0.92%
Year ended 7/31/04 $1.00 0.49% $ 18 0.64% 0.48% 0.91%
Six months ended 1/31/05+ $1.00 0.47%* $ 69 0.68%** 1.04%** 0.91%**
===================================================================================================================================
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/00 $1.00 3.46% $ 100,995 0.31% 3.51% 0.83%
Year ended 7/31/01 $1.00 3.44% $ 190,268 0.29% 3.33% 0.74%
Year ended 7/31/02 $1.00 1.45% $ 249,280 0.34% 1.43% 0.77%
Year ended 7/31/03 $1.00 0.91% $ 199,439 0.42% 0.92% 0.78%
Year ended 7/31/04 $1.00 0.68% $ 136,302 0.38% 0.67% 0.80%
Six months ended 1/31/05+ $1.00 0.59%* $ 165,607 0.38%** 1.18%** 0.81%**
===================================================================================================================================
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/00 $1.00 3.40% $ 29,693 0.38% 3.33% 1.08%
Year ended 7/31/01 $1.00 3.37% $ 40,981 0.36% 3.26% 0.99%
Year ended 7/31/02 $1.00 1.38% $ 42,004 0.41% 1.35% 1.02%
Year ended 7/31/03 $1.00 0.80% $ 53,079 0.52% 0.80% 1.03%
Year ended 7/31/04 $1.00 0.43% $ 17,590 0.63% 0.42% 1.05%
Six months ended 1/31/05+ $1.00 0.47%* $ 25,154 0.63%** 0.95%** 1.06%**
===================================================================================================================================
MUNICIPAL MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.47%* $ 863 0.46%** 0.62%** 0.91%**
Six months ended 1/31/05+ $1.00 0.55%* $ 38 0.46%** 0.90%** 0.90%**
===================================================================================================================================
MUNICIPAL MONEY MARKET FUND PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.42%* $ 637 0.53%** 0.55%** 0.98%**
Six months ended 1/31/05+ $1.00 0.52%* $ 35 0.53%** 0.89%** 0.97%**
===================================================================================================================================
MUNICIPAL MONEY MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.34%* $ 244 0.63%** 0.44%** 1.06%**
Six months ended 1/31/05+ $1.00 0.47%* $ 2,899 0.63%** 1.10%** 1.04%**
===================================================================================================================================
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.
+ Unaudited.
^ Amount is less than $0.005.
* Not annualized.
** Annualized.
See notes to financial statements
38-39 spread
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 August 1, 2004 through January 31,
2005.
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 ERIOD* PERIOD
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
----------- --------- ---------------- ----------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $1,007.00 $2.73 0.54%
Class A Shares 1,000.00 1,005.80 3.99 0.79%
Class B Shares 1,000.00 1,002.50 7.22 1.43%
Class C Shares 1,000.00 1,002.50 7.12 1.41%
Advisor Shares 1,000.00 1,004.50 5.25 1.04%
Institutional Money Market Fund Institutional Shares 1,000.00 1,008.60 1.11 0.22%
Select Shares 1,000.00 1,008.20 1.52 0.30%
Preferred Shares 1,000.00 1,007.80 1.87 0.37%
Trust Shares 1,000.00 1,007.30 2.38 0.47%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,008.30 1.11 0.22%
Select Shares 1,000.00 1,007.90 1.52 0.30%
Preferred Shares 1,000.00 1,007.50 1.87 0.37%
Trust Shares 1,000.00 1,007.00 2.38 0.47%
Government Money Market Fund Institutional Shares 1,000.00 1,006.30 2.88 0.57%
Class A Shares 1,000.00 1,005.30 3.89 0.77%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,007.80 1.11 0.22%
Select Shares 1,000.00 1,007.30 1.52 0.30%
Preferred Shares 1,000.00 1,007.00 1.87 0.37%
Trust Shares 1,000.00 1,006.50 2.38 0.47%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,005.40 2.73 0.54%
Class A Shares 1,000.00 1,004.70 3.44 0.68%
Municipal Money Market Fund Institutional Shares 1,000.00 1,005.90 1.92 0.38%
Class A Shares 1,000.00 1,004.70 3.18 0.63%
Select Shares 1,000.00 1,005.50 2.33 0.46%
Preferred Shares 1,000.00 1,005.20 2.68 0.53%
Trust Shares 1,000.00 1,004.70 3.18 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.
40
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
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
----------- --------- ---------------- ----------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $1,022.48 $2.75 0.54%
Class A Shares 1,000.00 1,021.22 4.02 0.79%
Class B Shares 1,000.00 1,018.00 7.27 1.43%
Class C Shares 1,000.00 1,018.10 7.17 1.41%
Advisor Shares 1,000.00 1,019.96 5.30 1.04%
Institutional Money Market Fund Institutional Shares 1,000.00 1,024.10 1.12 0.22%
Select Shares 1,000.00 1,023.69 1.53 0.30%
Preferred Shares 1,000.00 1,023.34 1.89 0.37%
Trust Shares 1,000.00 1,022.84 2.40 0.47%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,024.10 1.12 0.22%
Select Shares 1,000.00 1,023.69 1.53 0.30%
Preferred Shares 1,000.00 1,023.34 1.89 0.37%
Trust Shares 1,000.00 1,022.84 2.40 0.47%
Government Money Market Fund Institutional Shares 1,000.00 1,022.33 2.91 0.57%
Class A Shares 1,000.00 1,021.32 3.92 0.77%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,024.10 1.12 0.22%
Select Shares 1,000.00 1,023.69 1.53 0.30%
Preferred Shares 1,000.00 1,023.34 1.89 0.37%
Trust Shares 1,000.00 1,022.84 2.40 0.47%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,022.48 2.75 0.54%
Class A Shares 1,000.00 1,021.78 3.47 0.68%
Municipal Money Market Fund Institutional Shares 1,000.00 1,023.29 1.94 0.38%
Class A Shares 1,000.00 1,022.03 3.21 0.63%
Select Shares 1,000.00 1,022.89 2.35 0.46%
Preferred Shares 1,000.00 1,022.53 2.70 0.53%
Trust Shares 1,000.00 1,022.03 3.21 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.
41
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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, Accountant and Custodian Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------------------------
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
3/05
SAR-MMF-05
[LOGO] FIFTH THIRD FUNDS
STOCK AND BOND MUTUAL FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
----------------
JANUARY 31, 2005
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,
pleasecall 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 April 30 (available
beginning June 29, 2005) and October 31 are available, 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
OUR MESSAGE TO YOU
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Economic Outlook and Commentary Section ................................... 1
Management Discussion of Fund Performance
Small Cap Growth Fund ..................................................... 3
Mid Cap Growth Fund ....................................................... 4
Quality Growth Fund ....................................................... 5
Large Cap Core Fund ....................................................... 6
Equity Index Fund ......................................................... 7
Balanced Fund ............................................................. 8
Micro Cap Value Fund ...................................................... 9
Small Cap Value Fund ...................................................... 10
Multi Cap Value Fund ...................................................... 11
Disciplined Large Cap Value Fund .......................................... 12
Fifth Third LifeModel Aggressive Fund SM .................................. 13
Fifth Third LifeModel Moderately
Aggressive Fund SM ........................................................ 14
Fifth Third LifeModel Moderate Fund SM .................................... 15
Fifth Third LifeModel Moderately
Conservative Fund SM ...................................................... 16
Fifth Third LifeModel Conservative Fund SM ................................ 17
Strategic Income Fund ..................................................... 18
Select Stock Fund ......................................................... 19
Technology Fund ........................................................... 20
International Equity Fund ................................................. 21
Bond Fund ................................................................. 22
Intermediate Bond Fund .................................................... 23
Short Term Bond Fund ...................................................... 24
US Government Bond Fund ................................................... 25
Municipal Bond Fund ....................................................... 26
Intermediate Municipal Bond Fund .......................................... 27
Ohio Municipal Bond Fund .................................................. 28
Michigan Municipal Bond Fund .............................................. 29
Schedules of Portfolio Investments ........................................ 33
Notes to Schedules of Portfolio Investments ............................... 85
Statements of Assets and Liabilities ...................................... 92
Statements of Operations .................................................. 97
Statements of Changes in Net Assets ....................................... 102
Notes to Financial Statements ............................................. 120
Financial Highlights ...................................................... 130
Notes to Financial Highlights ............................................. 158
Supplemental Information .................................................. 159
[LOGO] Stock investors were rewarded in the second half of 2004 for
their patience during the first half of 2004. For the six-month
period ended January 31, 2005, positive returns for the major
stock averages included:
MARKET INDICES FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2005
[BAR GRAPH]
gain for the S&P 400 Index of mid cap stocks 12.24%
gain for the Russell 2000(R) Index of small cap stocks 13.88%
gain for the MSCI EAFE Index of international stocks 16.68%
Such strong returns were driven by a confluence of several events, including:
1. The results and finality of the November elections
2. Above average economic growth
3. Continued strength in corporate profits
4. Low bond yields
5. A subdued inflationary environment
Additionally, notice the continuation of the patterns where small cap stocks
outperformed large cap stocks and international stocks outperformed domestic
equities. These trends have persisted for several years and represent a reward
for well-diversified investors.
On the domestic front, an environment of above average economic growth combined
with below average bond yield is historically one where small cap stocks thrive.
For international investors, the mixture of a declining U.S. dollar (which was
down about 7% on a trade-weighted basis for the six months ended January 31,
2005) and strong overseas economic growth led by China, India, Eastern Europe
and parts of South America, continued to attract investor focus.
We expect that investors will continue to be attracted to international
opportunities as long as demand from China and India for commodities and other
infrastructure items remains strong and the governments of those two heavily
populated countries allow their middle classes to develop in a free market
economy.
The rising price of commodities and lower bond yields brought together an
unusual circumstance where the outperforming stock sectors over the past six
months were the utilities, energy, consumer discretionary and materials groups.
This resulted in value stocks outperforming growth stocks by nearly 6% from
August 1, 2004 to January 31,2005. This situation provided a challenge to our
growth stock team, while offering opportunity for our value stock team.
1
Perhaps the biggest surprise over the past six months was the positive
performance of the bond market. Most market observers, including ourselves, were
of the opinion that bond yields would rise during the second half of 2004 and
that bond prices, in turn, would fall. However, the yield on the 10-year
Treasury bond, which stood at 4.47% on July 31, 2004, fell to 4.13% by January 3
1, 2005, and prices rose accordingly. This was great for borrowers, but extended
the challenges facing income-focused investors.
The Federal Reserve Board (the "Fed") remained active during the second half of
2004, pushing its benchmark Fed Funds Rate from 1.25% to 2.25%.This was
primarily in response to continued strength in the U.S. economy and the
resulting concerns of increasing inflation that such growth tends to
generate-although consumers have yet to see any alarming impact from the 2004
expansion. The result was low single-digit total returns for bond investors over
the six-month period ending January 31,2005.
As we move further into 2005, we believe that the financial markets are likely
to remain focused on the Fed, economic and corporate profit growth, the value of
the dollar, inflation and the price of oil. One chief concern is that the Fed
will keep raising rates despite some expectations of slowing growth in economic
activity and corporate profits, while the dollar and oil prices will remain
inflationary wild cards.
While we agree that the pace of corporate profit growth will inevitably slow
from the torrid rates realized over the past few years, in which increases of
more than 20% were common, we are optimistic that the pace will remain above the
long-term average growth rate of 7%. This should provide upside potential for
stocks, though perhaps at a more subdued level than 2004.
We continue to be concerned about the low level of bond yields, and the effects
such circumstances could have for total return bond investors. The Fed is likely
to stay active for at least the first half of 2005, which could continue to
drive up yields on shorter-term issues. Further, we anticipate that economic
growth will linger near the long-term average of 3.5%, which would keep pressure
on the prices of longer-term bonds. In this environment, our bond fund managers
remain cautious.
All in all, we are fairly optimistic for the economy and the stock market.
However, we are aware of the threats to both from higher oil prices. We believe
that this continues to be an environment where investors should be patient and
well-diversified.
Thank you for your continued confidence in the Fifth Third Funds.
/s/ E.K. WIRTZ
- -----------------------------
KEITH WIRTZ, CFA
Chief Investment Officer
/s/ JOHN AUGUSTINE
- -----------------------------
JOHN AUGUSTINE, CFA
Chief Investment Strategist
2
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP GROWTH FUND
For the six-month period ended January 31, 2005, the Fifth Third Small Cap
Growth Fund (Institutional Shares) returned 11.19%, trailing its benchmark, the
Russell 2000(R) Growth Index, which advanced 13.48%.
After a quiet start, small cap stocks modestly gained traction before surging
through the final months of the period as oil prices fell from a historic peak
and the U.S. Presidential election passed without incident. Small cap equities
generally outperformed large cap equities due to increased exposure to easing
commodity costs and the resulting impact on earnings outlooks.
The Fund's underperformance hinged primarily on an overweight position, relative
to the benchmark, in the information technology (IT) sector and a
lighter-than-the-benchmark stake in the healthcare group. Specifically within
IT, semiconductor and semiconductor equipment names struggled. Despite good
fundamentals, end-market weaknesses prompted some to exit chip-related names,
which pulled down stock prices. +
As for healthcare, our biotechnology weighting lagged the benchmark's, which
diminished returns from the otherwise solid sector.+
Making positive contributions were the Fund's collection of industrial names,
mostly manufacturing companies that benefited directly from lower material and
energy prices, and a wide range of consumer discretionary holdings. From niche
retailers to specialized housing developers, companies that rely on upbeat
consumer sentiment were pleasantly surprised as the economy steadily improved,
long-term interest rates remained flat and holiday sales proved stronger than
originally anticipated. +
By the period's close, small cap stocks had outperformed large cap stocks for
five straight years, prompting many market observers to renew an annual
prediction of the demise of small cap stocks. However, while it's true the day
may arrive when large cap stocks will once again lead the market, we believe any
current statements are premature as we are still finding good stocks with
healthy earnings profiles.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- ------ ------ -------
Institutional 11.19% -1.92% 1.32% 8.95%
- ------------------------------------------------------------------
Class A* 5.46% -7.04% 0.03% 8.12%
- ------------------------------------------------------------------
Class B** 6.00% -6.95% -0.01% 7.86%
- ------------------------------------------------------------------
Class C** 9.73% -2.86% 0.31% 7.87%
- ------------------------------------------------------------------
Advisor 10.89% -2.42% 0.80% 8.40%
- ------------------------------------------------------------------
Russell 2000(R)
Growth Index 1 13.48% 3.71% -4.28% 6.84%
- ------------------------------------------------------------------
Lipper Small-Cap Growth
Funds Average 1 12.58% 2.40% -1.98% 9.68%
- ------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Trimble Navigation Ltd........................ 1.47%
Engineered Support Systems, Inc............... 1.44%
Children's Place Retail Stores, Inc........... 1.38%
Parametric Technology Corp.................... 1.33%
Jarden Corp................................... 1.25%
WCI Communities, Inc.......................... 1.20%
CKE Restaurants, Inc.......................... 1.19%
Steel Dynamics, Inc........................... 1.17%
F5 Networks, Inc.............................. 1.15%
Urban Outfitters, Inc......................... 1.15%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MID CAP GROWTH FUND
For the six-month period ended January 31, 2005, the Fifth Third Mid Cap Growth
Fund (Institutional Shares) gained 11.11%, under per-forming its benchmark, the
Russell MidCap(R) Growth Index, which advanced 13.61%.
Mirroring the equity market's volatility, mid cap stocks bounced from a
mid-August trough to late December peak before settling somewhat in January.
Much of the rally occurred following Election Day as uncertainties regarding the
vote were resolved. Market leaders following the President's re-election
included defense- and healthcare-related names, which many anticipated would
have fared poorly under a new administration.
Lower quality, higher risk stocks also outperformed in the year-end push, a
development that hampered the Fund's performance due to our emphasis on better
quality names. Elsewhere, holdings in the semiconductor group, burdened with
uninspiring outlooks, pulled down our stake in the information technology
sector. By the period's end, we had trimmed our exposure to
semiconductor-related names while padding the Fund's stake in communications
equipment manufacturers. +
The Fund's smaller-than-the-benchmark weighting in pure manufacturing interests
diminished returns from the industrials sector as such companies benefited from
sturdy economic growth rates at home and abroad. Recognizing that growth
potential remains, we shifted our emphasis from the services group to classic
industrial interests by the period's end. +
Merger and acquisition activity in the wireless telecommunications community
boosted performance as consolidation efforts directly affected some of our
holdings. The Fund's overweight position in the energy group added to returns as
our decision to invest in service companies, which reported increased demand for
drilling amid higher prices for oil, proved smart. +
Without exposure to the troubled large cap pharmaceutical group, the Fund's
healthcare sector stake contributed positively, too. Smaller drug makers and
health maintenance organization operators finished 2005 on a strong note as the
election outcome reduced the likelihood of any broad healthcare reforms
featuring a large single payer of benefits. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
MID CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MID-SIZE
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE THAN LARGER COMPANIES.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- -------- ------- --------
Institutional 11.11% 3.82% 2.08% 9.06%
- ---------------------------------------------------------------
Class A* 5.38% -1.67% 0.74% 8.29%
- ---------------------------------------------------------------
Class B** 5.50% -2.22% 0.68% 7.90%
- ---------------------------------------------------------------
Class C** 9.47% 2.73% 1.02% 8.06%
- ---------------------------------------------------------------
Advisor 10.75% 3.24% 1.55% 8.59%
- ---------------------------------------------------------------
Russell
MidCap(R)
Growth Index 1 13.61% 8.80% -3.88% 10.80%
- ---------------------------------------------------------------
Lipper Mid-Cap
Growth Funds
Average 1 12.65% 6.66% -3.93% 9.60%
- ---------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
as a percentage of value of investments +
D. R. Horton, Inc............................. 1.95%
Caremark Rx, Inc.............................. 1.94%
Fisher Scientific International, Inc.......... 1.82%
Chico's FAS, Inc.............................. 1.80%
Nextel Partners Inc.,......................... 1.66%
Covance, Inc.................................. 1.66%
T. Rowe Price Group, Inc...................... 1.65%
Fidelity National Financial, Inc.............. 1.64%
Polo Ralph Lauren............................. 1.62%
Cephalon, Inc................................. 1.59%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
QUALITY GROWTH FUND
For the six-month period ended January 31, 2005, the Fifth Third Quality Growth
Fund (Institutional Shares) gained 3.29%, under-performing its benchmark, the
Russell 1000(R) Growth Index, which gained 6.01%.
Investors increasingly gravitated toward a sense of stability during the period,
preferring stocks with solid footing for near-term growth. While many of the
Fund's holdings met such criteria, select segments lagged.
One such area appeared in the information technology (IT) sector, where the Fund
was overweight, relative to the benchmark. This overweight within the IT sector
contributed to the Fund's under-performance. Although many IT companies reported
good earnings progress, especially within the semiconductor group, concerns
about the sustainability of the growth rates in the face of increasing inventory
levels at key customers loomed large. +
Uneven equity markets and low trading levels sparked similar worries about
securities processors, which contributed to an underperformance by the Fund's
financial services holdings. Despite the weakness, we opted to boost the Fund's
exposure to the industry, building up stakes in institutions that could benefit
from initial public offerings and mergers and acquisitions activities that both
blossomed in the latter part of the period. +
We adopted a similarly selective approach to investing in the healthcare arena,
where our underweight stake added to performance during the period. We continued
to completely avoid the large pharmaceutical companies, which are mired in
competitive and legal battles, but emphasized positions in managed care system
operators, which have increased premiums faster than costs have risen, as well
as promising biotechnology and medical device firms. +
The Fund's exposure to high-end retailers, which enjoyed a solid holiday season
and lifted the consumer discretionary sector, was scaled back once valuations
fully reflected future growth potential. Some of the proceeds were directed into
the industrials sector, where healthier economies worldwide supported
expectations for good growth prospects and where we also sensed a market shift
toward an emphasis on capital expenditures.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- -------- ------- --------
Institutional 3.29% -7.42% -6.16% 9.07%
- ----------------------------------------------------------------
Class A* -2.05% -12.30% -7.36% 8.34%
- ----------------------------------------------------------------
Class B** -2.28% -12.94% -7.44% 7.94%
- ----------------------------------------------------------------
Class C** 1.71% -8.32% -7.07% 8.17%
- ----------------------------------------------------------------
Advisor 3.01% -7.83% -6.62% 8.63%
- ----------------------------------------------------------------
Russell
1000(R) Growth
Index 1 6.01% 0.70% -9.04% 8.99%
- -----------------------------------------------------------------
S&P 500(R) Index 1 8.15% 6.22% -1.77% 11.51%
- -----------------------------------------------------------------
Lipper Large-Cap
Core Funds
Average 1 7.27% 3.71% -3.03% 9.48%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
as a percentage of value of investments +
Home Depot, Inc............................... 3.74%
Texas Instruments, Inc........................ 3.35%
Goldman Sachs Group, Inc...................... 3.34%
EMC Corp...................................... 3.12%
Microsoft Corp................................ 2.97%
International Game Technology................. 2.94%
Manpower, Inc................................. 2.88%
Teva Pharmaceutical Industries Ltd.,.......... 2.61%
Broadcom Corp., ............................ 2.57%
Northern Trust Corp........................... 2.54%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP CORE FUND
For the six-month period ended January 31, 2005, the Fifth Third Large Cap Core
Fund (Institutional Shares) gained 8.91%, outperforming its benchmarks, the S&P
500(R) Index and the Russell 1000(R) Index, which advanced 8.15% and 8.92%,
respectively.
The Fund has been constructed around an investment strategy that relies on
quantitative analysis, or a series of financial calculations. Focused on factors
such as a company's valuation, earnings quality, profitability and use of
capital, in addition to a mathematical assessment of the market's sentiment
regarding a stock, our process highlights stocks that have a higher expected
risk-adjusted return than the benchmark. In turn, we populate the Fund with the
names that we believe feature the best prospects for positive returns while
attempting to minimizing risk relative to the benchmark.
Following our quantitative process, the Fund's bias during the period tended
toward low price-to-earnings2 (P/E) ratios, high price momentum, smaller-sized
capitalizations and low price volatility. As the benchmark's leaders generally
featured lower P/E ratios, modest growth rates and mid-sized capitalizations,
our strategy and process paid off. +
At the period's close, the Fund held about 100 stocks. We intend to gradually
increase the number of holdings to hopefully improve the risk-return profile of
the Fund. Sector weightings stayed relatively true to the benchmark, as our
risk-adjusted approach tends to dismiss sector preferences. +
From a sector standpoint, utilities toting low valuations and offering generous
dividend yields paced the market. Energy stocks also performed well amid higher
oil and natural gas prices and sustained global demand while the consumer
discretionary group continued to profit from relatively low interest rates and a
healthy economy.
The main laggard was the healthcare sector, where large drug makers struggling
with high-profile safety issues and expanding competitive issues offset solid
gains posted by health insurers. Other weak performers included the
telecommunications group, which offered little to inspire investors, and the
information technology sector, which sagged in anticipation of a sluggish 2005.
2 A VALUATION RATIO OF A COMPANY'S CURRENT SHARE PRICE TO ITS PER-SHARE
EARNINGS (P/E). A HIGH P/E MEANS HIGH PROJECTED EARNINGS IN THE FUTURE.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- -------- ------- --------
Institutional 8.91% 6.75% -3.14% 9.06%
- ----------------------------------------------------------------
Class A* 3.25% 1.18% -4.37% 8.24%
- ----------------------------------------------------------------
Class B** 3.31% 0.73% -4.46% 7.96%
- ----------------------------------------------------------------
Class C** 7.38% 5.71% -4.11% 7.97%
- ----------------------------------------------------------------
Russell 1000(R)
Index 1 8.92% 6.57% -1.43% 11.59%
- ----------------------------------------------------------------
S&P 500(R) Index 1 8.15% 6.22% -1.77% 11.51%
- ----------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 7.27% 3.71% -3.03% 9.48%
- ----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Exxon Mobil Corp.............................. 3.16%
Microsoft Corp................................ 2.77%
Johnson & Johnson............................. 2.06%
Bank of America Corp.......................... 2.00%
Pfizer, Inc................................... 1.91%
American International Group, Inc............. 1.90%
IBM Corp...................................... 1.73%
Intel Corp.................................... 1.61%
J.P. Morgan Chase & Co........................ 1.56%
General Electric Corp......................... 1.51%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
EQUITY INDEX FUND
For the six-month period ended January 31,2005, the Fifth Third Equity Index
Fund (Institutional Shares) returned 8.09%, compared to its benchmark, the S&P
500(R) Index, which advanced 8.15%.
As the Fund seeks to duplicate the returns of the S&P 500(R) Index, slight
underperformance is expected, duE primarily to Fund management fees. During the
period, we were able to make up some of the difference by modestly capitalizing
on market inefficiencies that arose in connection with the Index's 10 membership
changes.
Generally speaking, stocks with lower price-to-earnings 2 (P/E) ratios
outperformed those with higher P/E ratios during the period, reflecting a
preference for lower-valued companies. Other broad characteristics included
stronger returns from stocks with lower price-to-book2 ratios, more modest
earnings growth rates and capitalizations in the middle 60% of the Index. More
speculative names especially suffered during the final month of the period after
participating in the Index's strong run during the fourth quarter of 2004.
From a sector standpoint, utilities were the best performing group as investors
were attracted to the low valuations and higher dividend yields in this long
out-of-favor area. As oil prices spiked to all-time levels and global demand for
oil and natural gas remained high, the energy sector generated the next best
return, followed by the consumer discretionary group, which benefited from a
sturdy U.S. economy and historically low interest rates.
Although every sector closed out the period with a gain, the healthcare group
experienced the smallest gain. Buffeted by drug safety warnings, uninspiring new
product pipelines and expanding generic challenges, large pharmaceutical stocks
weighed heavily on the sector, outweighing the perceived positives from the
Republican domination in Washington, DC. Telecommunications companies contending
with weakening fundamentals added meager gains, as did the information
technology sector, which generally posted brighter results but faded amid dimmer
forecasts.
2 A valuation ratio of a company's current share price to its per-share earnings
(P/E). A high P/E means high projected earnings in the future. The ratio of
price-to-book (P/B) value gives an investor an idea about the relationship
between the stock's price and the company's underlying value. Other things
being equal, people who invest for value prefer companies with a low ratio of
P/B value.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- -------- ------- --------
Institutional 8.09% 6.04% -2.07% 11.03%
- ----------------------------------------------------------------
Class A* 2.54% 0.46% -3.32% 10.17%
- ----------------------------------------------------------------
Class B** 2.49% -0.08% -3.44% 9.94%
- ----------------------------------------------------------------
Class C** 6.48% 4.95% -3.05% 9.94%
- ----------------------------------------------------------------
Advisor 7.81% 5.49% -2.54% 10.51%
- ----------------------------------------------------------------
Select 8.05% 5.96% -2.15% 10.96%
- ----------------------------------------------------------------
Preferred 7.93% 5.81% -2.23% 10.89%
- ----------------------------------------------------------------
Trust 7.90% 5.72% -2.32% 10.78%
- ----------------------------------------------------------------
S&P 500(R) Index 1 8.15% 6.22% -1.77% 11.51%
- ----------------------------------------------------------------
Lipper S&P 500(R)
Index Objective
Funds Average 1 7.83% 5.59% -2.32% 11.03%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
General Electric Corp......................... 2.92%
Exxon Mobil Corp.............................. 2.55%
Microsoft Corp................................ 2.19%
Citigroup, Inc................................ 1.95%
Wal-Mart Stores, Inc.......................... 1.70%
Johnson & Johnson............................. 1.47%
Bank of America Corp.......................... 1.43%
Pfizer, Inc................................... 1.39%
American International Group, Inc............. 1.32%
IBM Corp...................................... 1.19%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BALANCED FUND
For the six-month period ended January 31, 2005, the Fifth Third Balanced Fund
(Institutional Shares) gained 6.39%, underperforming the S&P 500(R) Index return
of 8.15% and outperforming the Lehman Brothers Aggregate BonD Index return of
3.81%.
Actively seeking sustainability in revenues and earnings, equity investors
increasingly turned toward high quality, less cyclical stocks during the period.
The more stable enterprises also generally offered more exposure to the global
economy, where select markets outperformed the United States
Having anticipated such a shift in investor sentiment, we were pleased to see
the market move toward our philosophy, although the transition proved
challenging at times.
Negatively affecting performance was our stake in the financial sector, which
was underweight, relative to the benchmark. More specifically, the Fund's
regional bank stocks struggled amid concerns over rising interest rates.
Elsewhere, the Fund's healthcare position sagged in response to significant sell
offs in the pharmaceutical industry following a series of drug safety warnings,
although gains in the medical device space helped offset some of the setback. +
Positive contributions came from the energy sector, as a resurgence among
oilfield service providers and drillers made up for a modest cooling of oil
prices, and from the industrials group, which benefited from economic growth
overseas and lifted the Fund's significantly overweight position in the
process. +
Within the fixed income portion of the Fund, a bias for higher quality bonds
hampered returns as low quality credits rallied. The underperformance was
offset, however, by the Fund's barbell structure. With the Federal Reserve in
the midst of a tightening cycle, the combination of an underweight position in
medium-term bonds and overweight positions in shorter and longer maturity issues
proved beneficial. +
In addition, better-yielding high quality asset-backed securities tied to home
equity loans and commercial mortgage backed securities issued by office space
developers padded returns. +
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- -------- ------- --------
Institutional 6.39% 4.20% -0.26% 8.47%
- ----------------------------------------------------------------
Class A* 0.87% -1.29% -1.55% 7.73%
- ----------------------------------------------------------------
Class B** 0.78% -1.87% -1.63% 7.34%
- ----------------------------------------------------------------
Class C** 4.79% 3.12% -1.22% 7.53%
- ----------------------------------------------------------------
Advisor 6.01% 3.63% -0.85% 7.85%
- ----------------------------------------------------------------
S&P 500(R) Index 1 8.15% 6.22% -1.77% 11.51%
- ----------------------------------------------------------------
Lehman Brothers
Aggregate Bond
Index 1 3.81% 4.16% 7.92% 7.58%
- ----------------------------------------------------------------
Lipper Balanced
Target Maturity
Funds Average 1 2.70% 0.56% 3.70% 8.36%
- ----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
General Electric Corp......................... 3.51%
FNMA, 5.50%,6/1/33 TBA........................ 3.28%
Microsoft Corp................................ 2.68%
IBM Corp...................................... 2.68%
Wells Fargo & Co.............................. 2.68%
Bank of America Corp.......................... 2.48%
United Technologies Corp...................... 2.40%
McDonald's Corp............................... 2.25%
Abbott Laboratories........................... 2.16%
Johnson & Johnson............................. 2.11%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
8
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICRO CAP VALUE FUND
For the six-month period ended January 31, 2005, the Fifth Third Micro Cap Value
Fund (Institutional Shares) returned 12.82%, trailing its benchmark, the Russell
2000(R)Value Index, which gained 14.24%.
Historically, strong performance in the small cap arena has been paced by the
market's smallest names. As that trend failed to materialize during the period,
the tightly defined Fund lagged its broader benchmark. A combination of factors
likely contributed to the development, including increased risk aversion among
investors, a natural letdown after an extended period of out performance by
micro caps and a shift in the individual-institutional trading mix as many
institutions are prohibited from owning micro caps.
The oil-driven rise in energy stocks also weighed on the Fund's returns,
relative to its benchmark. Aside from a few oil services companies, which did
well, the energy sector has few micro cap stocks, making it difficult for the
Fund to participate in energy sector rallies. +
One corner of the economy that enjoyed a resurgence was the trucking industry,
where demand exceeded capacity, which led to better utilization of trucks and
higher rates. Having invested in select names when the stocks appeared
undervalued, we profited from the rally sparked by improving fundamentals. In
addition, the gains validated our efforts to keep an eye out for areas generally
immune to foreign competition. +
Several buyouts aided the Fund's returns as a wide-ranging merger and
acquisition trend gained traction. With blockbuster deals creating an atmosphere
of heightened activity, larger companies toting healthy balance sheets continued
to seek out companies capable of providing a quick earnings boost. Burdened with
the significant costs of complying with the Sarbanes-Oxley Act, many micro cap
companies became potential candidates.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 Year 5 YEAR INCEPTION
----------- ------- ------- ------- ---------
Institutional 2/1/98 12.82% 13.70% 19.53% 16.67%
- -------------------------------------------------------------------------
Class A* 2/1/98 7.15% 7.76% 18.12% 15.69%
- -------------------------------------------------------------------------
Class B** 2/1/98 7.68% 8.36% 18.44% 15.79%
- -------------------------------------------------------------------------
Class C** 2/1/98 11.68% 13.36% 18.82% 16.08%
- -------------------------------------------------------------------------
Advisor 2/1/98 12.72% 13.39% 19.11% 16.28%
- -------------------------------------------------------------------------
Russell
2000(R) Value
Index 1 14.24% 13.59% 16.93% 10.39%
- -------------------------------------------------------------------------
Lipper Small-Cap
Value Funds
Average 1 13.32% 14.07% 16.49% 9.84%
- -------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 AGGRESSIVE VALUE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
FEBRUARY 1, 1998. THE INCEPTION DATE FOR CLASS A, CLASS B AND CLASS C SHARES IS
AUGUST 13,2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS A, CLASS B
AND CLASS C SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS
ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS A, CLASS B
AND CLASS C SHARES. FOR THE PERIOD PRIOR TO AUGUST 13,2001, THE QUOTED
PERFORMANCE OF THE MICRO CAP VALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE
OF THE FIFTH THIRD/MAXUS AGGRESSIVE VALUE FUND INVESTOR SHARES WITH AN INCEPTION
DATE OF FEBRUARY 1, 1998. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Symmetricom, Inc.............................. 2.52%
Material Sciences Corp........................ 2.28%
Hologic, Inc.................................. 2.00%
Comstock Resources, Inc....................... 1.87%
Stepan Co..................................... 1.72%
Bassett Furniture Industries, Inc............. 1.71%
Blair Corp.................................... 1.70%
Dril-Quip, Inc................................ 1.66%
Michael Baker Corp............................ 1.53%
BKF Capital Group............................. 1.51%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP VALUE FUND
For the six-month period ended January 31, 2005, the Fifth Third Small Cap Value
Fund (Institutional Shares) gained 8.26%, underperforming its benchmark, the
Russell 2000(R) Value Index, which advanced 14.24%.
The malaise the equity market experienced during the first half of 2004
continued into the second half as concerns about rising interest rates and oil
prices weighed on the major indices until mid-August. Fueled by steady corporate
earnings growth and moderating long-term interest rates, a rally subsequently
advanced prices higher through late December. Following the four-month push,
many companies booked profits during January.
Underweight positions, relative to the benchmark, and stock selection in four
sectors: materials, consumer discretionary, consumer staples, and healthcare,
diminished returns for the Fund during the period. Although the Fund was
underweight in the financial services group, a significant stake in the
insurance industry experienced a large drop when the New York Attorney General
announced an investigation into industry practices.+
Contributing to the Fund's gains were holdings in the energy sector, where an
overweight position has been maintained for the long term. Having invested in a
mix of oil and natural gas producers and oil service firms, we continue to
believe that meaningful exposure to this area may prove beneficial to
investors.+
Stocks in the industrial, information technology, telecommunications services
and utility sectors also enhanced returns. In particular, positions within the
telecommunications and utility groups significantly surpassed the relative
performance of the benchmark.+
At the period's close, the Fund held overweight stakes in the consumer staples,
energy, healthcare, materials and telecommunications sectors and underweight
positions in the financial and industrial sectors. +
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 Year INCEPTION
----------- ------- ------- ------------
Institutional 4/1/03 8.26% 7.35% 25.61%
- ------------------------------------------------------------------
Class A* 4/1/03 2.68% 1.66% 21.79%
- ------------------------------------------------------------------
Class B** 4/1/03 2.73% 1.40% 22.57%
- ------------------------------------------------------------------
Class C** 4/1/03 6.71% 6.31% 24.30%
- ------------------------------------------------------------------
Advisor 4/1/03 8.00% 6.82% 24.99%
- ------------------------------------------------------------------
Russell
2000(R) Value Index 1 14.24% 13.59% 38.13%
- ------------------------------------------------------------------
Lipper Small-Cap
Core Funds Average 1 13.54% 10.74% 34.83%
- ------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
+ PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Tidewater, Inc................................ 3.86%
Allegheny Energy, Inc......................... 3.10%
Polyone Corp.................................. 2.91%
Humana, Inc................................... 2.86%
Accredo Health, Inc........................... 2.82%
Endurance Specialty Holdings, Ltd............. 2.63%
Headwaters, Inc............................... 2.59%
Performance Food Group Co..................... 2.43%
Service Corp. International ................ 2.30%
Hilb, Rogal & Hamilton Co..................... 2.23%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
10
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MULTI CAP VALUE FUND
For the six-month period ended January 31, 2005, the Fifth Third Multi Cap Value
Fund (Institutional Shares) advanced 12.28%, outperforming its benchmarks, the
Russell 3000(R) Value Index and the Russell MidCap(R) Index, which returned 1
1.88%. and 15.88%, respectively.
During the period, the Fund's allocation tipped toward the larger end of the
capitalization spectrum-stocks carrying market caps of more than $5 billion. In
a market where undervalued stocks of any size proved scarce, the deeper pool of
large cap stocks yielded more candidates to meet our disciplined investment
criteria. +
Broadly speaking, market sentiment started to sour on value stocks, due in part
to the style's lengthy out performance and resulting expansion of valuations
beyond historically attractive levels. In turn, growth names started to gain
favor, although investors refrained from a wholesale shift into pure momentum
plays, choosing instead a path of gradually shifting preferences.
An underlying theme that generated solid returns was our focus on companies that
contend with minimal overseas competition. As foreign economies, especially
within Asia, enjoyed robust growth and the value of the U.S. dollar slipped,
select large cap names within the hotel, leisure and restaurant industries
experienced strong growth.
Large pharmaceutical stocks weighed on performance as drug safety and generic
competition concerns undercut growth prospects. Although most of our holdings
were purchased following significant falls, subsequent dips on further bad news
reminded us that difficulties remain. +
To mitigate the Fund's risk profile, we continued to maintain a well-diversified
collection of stocks. One area we shied from, however, was the financial
services sector, where valuations appeared rich and prospects seemed uncertain,
given the Federal Reserve's commitment to further interest rate increases.+
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
SMALL- AND MID-CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE
SMALLER COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE THAN LARGER COMPANIES.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- ------ ------- --------
Institutional 12.28% 8.27% 12.55% 12.62%
- ----------------------------------------------------------------
Class A* 6.52% 2.60% 11.05% 11.86%
- ----------------------------------------------------------------
Class B** 6.71% 2.17% 11.42% 12.17%
- ----------------------------------------------------------------
Class C** 10.67% 7.18% 11.66% 12.16%
- ----------------------------------------------------------------
Advisor 11.94% 7.69% 12.02% 12.34%
- ----------------------------------------------------------------
Russell 3000(R)Value
Index 1 11.88% 12.53% 6.37% 13.31%
- ----------------------------------------------------------------
Russell MidCap(R)Value
Index 1 15.88% 17.72% 14.35% 15.13%
- ----------------------------------------------------------------
Lipper Multi-Cap
Value Funds Average 1 10.35% 9.88% 6.09% 11.53%
- ----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 FIFTH THIRD/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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Transocean, Inc............................... 2.00%
Borg Warner, Inc.............................. 1.47%
Humana, Inc................................... 1.44%
CIGNA Corp.................................... 1.37%
ConocoPhillips................................ 1.27%
Honeywell International, Inc.................. 1.23%
Schlumberger Ltd.............................. 1.09%
SUPERVALU, Inc................................ 1.08%
ConAgra, Inc.................................. 1.08%
Marathon Oil Corp............................. 1.06%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DISCIPLINED LARGE CAP VALUE FUND
For the six-month period ended January 31, 2005, the Fifth Third Disciplined
Large Cap Value Fund (Institutional Shares) advanced 7.60%, underperforming its
benchmark, the Russell 1000(R)Value Index, which returned 11.67%.
For most of 2004, the major stock indexes generated lackluster returns amid
domestic and global uncertainty. But once the U.S. Presidential election was
decided-and without terrorist attacks -the markets rallied broadly, reinforced
by the belief that the federal government would remain investor friendly. A
renewed attraction to smaller, riskier stocks generally detracted from large cap
value equities, although positive earnings revisions lifted some of the Fund's
holdings.
Weighing on overall performance was an overweight position, relative to the
benchmark, in the healthcare sector. More specifically, the Fund's investment in
large cap pharmaceuticals, which were pressured by drug safety warnings and
concerns over generic competition, struggled to overcome negative sentiment. +
An underweight stake in the utilities group, which paced the benchmark behind
the out performance of a handful of more speculative companies, also hurt the
Fund's relative performance. Strong returns from tobacco companies similarly
undermined our commitment to higher quality names. +
Conversely, the Fund's overweight stake in the energy sector proved advantageous
as uneasiness over supply lines-especially from the Middle East-combined with
sustained elevated demand to keep crude oil prices high.
Larger-than-the-benchmark positions in the materials and consumer staples groups
helped returns as well. +
An underweight position in the telecommunications sector also contributed
positively on a relative basis as increased competition, looming capital
expenditures and cost pressures caused telecommunications shares to weaken. +
As the potential of moderating economic growth and slowing earnings growth hangs
over the market, as well as historically high oil prices and climbing short-term
interest rates, our focus remains on higher quality, lower risk stocks
possessing a higher likelihood of greater earnings stability and positive
earnings revisions.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
----------- ------ ------ --------
Institutional 7.60% 9.51% 6.18% 11.56%
- ----------------------------------------------------------------
Class A* 2.05% 3.82% 4.81% 10.79%
- ----------------------------------------------------------------
Class B** 2.04% 3.44% 5.03% 10.52%
- ----------------------------------------------------------------
Class C** 6.09% 8.52% 5.13% 10.55%
- ----------------------------------------------------------------
Russell
1000(R) Value Index 1 11.67% 12.45% 5.59% 13.28%
- ----------------------------------------------------------------
Lipper Equity
Income Funds Average 1 9.59% 9.39% 4.48% 10.52%
- ----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 2 7, 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
General Dynamics Corp......................... 3.21%
CVS Corp...................................... 2.95%
Honeywell International, Inc.................. 2.93%
J.R Morgan Chase & Co......................... 2.85%
Dow Chemical Co............................... 2.81%
Royal Dutch Petroleum Co...................... 2.74%
MetLife, Inc.................................. 2.72%
ConocoPhillips................................ 2.65%
Merrill Lynch & Co., Inc...................... 2.61%
Gannett, Inc.................................. 2.55%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
12
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM
For the six-month period ended January 31, 2005, the Fifth Third LifeModel
Aggressive Growth FundSM (Institutional Shares) returned 7.91%, while its
benchmarks, the Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index advanced 9.67% and 2.49%, respectively.
The period featured a strong run for stocks that began after the November
elections as investors cheered the finality of the outcome and had to worry
about one less item on their list of uncertainties. Other catalysts included
strength in corporate profit levels, continued low bond yields and above average
economic growth.
Against this backdrop, we maintained a bias toward equities, which contributed
to the Fund's gains. +
We also maintained an equal stance between growth and value stock styles, a
position that detracted from returns as value stocks, boosted by a greater
exposure to the robust energy sector, outperformed growth stocks by nearly 6%. +
By the period's close, however, the margin of difference between the two styles
had started to shrink. In turn, we started shifting our emphasis toward growth
stocks, where we believe the potential for future returns is higher, even if
there's a slowdown in economic activity and bond yields modestly increase. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. 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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR INCEPTION
--------- -------- ------ ---------
Institutional 8/1/02 7.91% 3.40% 13.97%
- -------------------------------------------------------------------
Class A* 8/1/02 2.38% -2.05% 11.33%
- -------------------------------------------------------------------
Class B** 8/1/02 2.43% -2.57% 11.80%
- -------------------------------------------------------------------
Class C** 8/1/02 6.41% 2.34% 12.82%
- -------------------------------------------------------------------
Wilshire 5000
Index 1 9.67% 7.24% 14.67%
- -------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 2.49% 2.57% 5.06%
- -------------------------------------------------------------------
Blended Index 1 8.95% 6.80% 13.79%
- -------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR GRAPH]
Fifth Third Disciplined Large Cap Value Fund 25.10%
Fifth Third Institutional Money Market 3.09%
Fifth Third Intermediate Bond Fund 2.92%
Fifth Third International Equity 8.89%
Fifth Third Mid Cap Growth Fund 10.90%
Fifth Third Multi Cap Value Fund 10.93%
Fifth Third Quality Growth Fund 24.55%
Fifth Third Small Cap Growth Fund 6.77%
Fifth Third Small Cap Value Fund 6.85%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
13
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM
For the six-month period ended January 31, 2005, the Fifth Third LifeModel
Moderately Aggressive Fund SM (Institutional Shares) returned 6.75%, while its
primary benchmarks, the Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index advanced 9.67% and 2.49%, respectively.
The period featured a strong run for stocks that began after the November
elections as investors cheered the finality of the outcome and had to worry
about one less item on their list of uncertainties. Other catalysts included
strength in corporate profit levels, continued low bond yields and above average
economic growth.
Against this backdrop, we maintained a bias toward equities, which contributed
to the Fund's gains. +
We also maintained an equal stance between growth and value stock styles, a
position that detracted from returns as value stocks, boosted by a greater
exposure to the robust energy sector, outperformed growth stocks by nearly 6%. +
By the period's close, however, the margin of difference between the two styles
had started to shrink. In turn, we started shifting our emphasis toward growth
stocks, where we believe the potential for future returns is higher, even if
there's a slowdown in economic activity and bond yields modestly increase. In
the bond portfolio, we maintained a defensive posture by tilting toward
shorter-term bonds. This is a stance that we have had for some time, as we
remain concerned that longer-term bond yields are still too low, given above
average economic growth and an active Federal Reserve. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. 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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR INCEPTION
--------- -------- ------ ---------
Institutional 8/1/02 6.75% 3.13% 13.68%
- ------------------------------------------------------------------
Class A* 8/1/02 1.20% -2.30% 11.08%
- ------------------------------------------------------------------
Class B** 8/1/02 1.19% -2.88% 11.56%
- ------------------------------------------------------------------
Class C** 8/1/02 5.19% 2.14% 12.57%
- ------------------------------------------------------------------
Wilshire 5000
Index 1 9.67% 7.24% 14.67%
- ------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 2.49% 2.57% 5.06%
- ------------------------------------------------------------------
Blended Index 1 7.52% 5.91% 11.97%
- ------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fifth Third Bond Fund 2.98%
Fifth Third Disciplined Large Cap Value Fund 20.35%
Fifth Third Institutional Money Market Fund 2.42%
Fifth Third Intermediate Bond Fund 8.90%
Fifth Third International Equity 6.96%
Fifth Third Mid Cap Growth Fund 8.82%
Fifth Third Multi Cap Value Fund 8.84%
Fifth Third Quality Growth Fund 20.01%
Fifth Third Short Term Bond Fund 10.87%
Fifth Third Small Cap Growth Fund 4.90%
Fifth Third Small Cap Value Fund 4.95%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
14
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATE FUND SM
For the six-month period ended January 31, 2005, the Fifth Third LifeModel
Moderate FundSM (Institutional Shares) returned 5.37%, while its primary
benchmarks, the Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index advanced 9.67% and 2.49%, respectively.
The period featured a strong run for stocks that began after the November
elections as investors cheered the finality of the outcome and had to worry
about one less item on their list of uncertainties Other catalysts included
strength in corporate profit levels, continued low bond yields and above average
economic growth. While equity investors enjoyed returns in the high single-digit
to low double-digit range (depending on the index), bond investors generally
booked gains in the low single-digits.
During this period, we maintained a bias toward stocks, a position that
contributed positively to performance. Detracting from the gain, however, was an
equal weighting between growth and value stocks as value outperformed growth by
nearly 6%, due in part to the strong rise in the price of oil. +
In the bond portion of the portfolio, we maintained a defensive posture by
tilting toward shorter-term bonds. This is a stance that we have had for some
time, as we remain concerned that longer-term bond yields are still too low,
given above average economic growth and an active Federal Reserve. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. 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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR INCEPTION
--------- ------- ------ ---------
Institutional 8/1/02 5.37% 3.05% 10.00%
- -------------------------------------------------------------------
Class A* 8/1/02 -0.10% -2.44% 7.47%
- -------------------------------------------------------------------
Class B** 8/1/02 -0.20% -3.01% 7.85%
- -------------------------------------------------------------------
Class C** 8/1/02 3.78% 1.97% 8.92%
- -------------------------------------------------------------------
Wilshire 5000
Index 1 9.67% 7.24% 14.67%
- -------------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 2.49% 2.57% 5.06%
- -------------------------------------------------------------------
Blended Index 1 6.08% 4.98% 10.08%
- -------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fifth Third Bond Fund 6.04%
Fifth Third Disciplined Large Cap Value Fund 14.96%
Fifth Third Institutional Money Market Fund 1.70%
Fifth Third Intermediate Bond Fund 15.98%
Fifth Third International Equity 4.94%
Fifth Third Mid Cap Growth Fund 6.95%
Fifth Third Multi Cap Value Fund 7.01%
Fifth Third Quality Growth Fund 14.52%
Fifth Third Short Term Bond Fund 19.95%
Fifth Third Small Cap Growth Fund 3.96%
Fifth Third Small Cap Value Fund 3.99%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM
For the six-month period ended January 31, 2005, the Fifth Third LifeModel
Moderately Conservative Fund SM (Institutional Shares) returned 4.79%, while its
benchmarks, the Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index advanced 9.67% and 2.49%, respectively.
The period featured a strong run for stocks that began after the November
elections as investors cheered the finality of the outcome and had to worry
about one less item on their list of uncertainties. Other catalysts included
strength in corporate profit levels, continued low bond yields and above average
economic growth. While equity investors enjoyed returns in the high single-digit
to low double-digit range (depending on the index), bond investors generally
booked gains in the low single-digits.
Against this backdrop, we stayed toward the upper end of the 30-50% range
allowable for stocks in the Fund, a position that contributed positively to
performance. Detracting from the gain, however, was an equal weighting between
growth and value stocks as value outperformed growth by nearly 6%, due in part
to a significant rise in the price of oil. +
In the bond portion of the portfolio, we maintained a defensive posture by
tilting toward shorter-term bonds. This is a stance that we have had for some
time, as we remain concerned that longer-term bond yields are still too low,
given above average economic growth and an active Federal Reserve. Offering a
similar perspective was Federal Reserve Chairman Alan Greenspan, whose
Congressional testimony near the end of the period reinforced our decision to
keep the bond portion of the Fund conservatively positioned. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. 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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR INCEPTION
--------- --------- ------ ---------
Institutional 8/1/02 4.79% 2.61% 8.06%
- -----------------------------------------------------------------
Class A* 8/1/02 -0.62% -2.83% 5.56%
- -----------------------------------------------------------------
Class B** 8/1/02 -0.80% -3.44% 5.88%
- -----------------------------------------------------------------
Class C** 8/1/02 3.28% 1.54% 6.98%
- -----------------------------------------------------------------
Wilshire 5000
Index 1 9.67% 7.24% 14.67%
- -----------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Bond Index 1 2.49% 2.57% 5.06%
- -----------------------------------------------------------------
Blended Index 1 5.36% 4.51% 9.11%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fifth Third Bond Fund 7.62%
Fifth Third Disciplined Large Cap Value Fund 11.87%
Fifth Third Institutional Money Market Fund 2.49%
Fifth Third Intermediate Bond Fund 20.71%
Fifth Third International Equity 5.01%
Fifth Third Mid Cap Growth Fund 6.04%
Fifth Third Multi Cap Value Fund 6.05%
Fifth Third Quality Growth Fund 11.62%
Fifth Third Short Term Bond Fund 22.66%
Fifth Third Small Cap Growth Fund 2.95%
Fifth Third Small Cap Value Fund 2.98%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
16
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM
For the six-month period ended January 31, 2005, the Fifth Third LifeModel
Conservative Fund SM (Institutional Shares) returned 3.53%, while its
benchmarks, the Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index advanced 9.67% and 2.49%, respectively.
The period featured a strong run for stocks that began after the November
elections as investors cheered the finality of the outcome and had to worry
about one less item on their list of uncertainties. Other catalysts included
strength in corporate profit levels, continued low bond yields and above average
economic growth. While equity investors enjoyed returns in the high single-digit
to low double-digit range (depending on the index), bond investors generally
booked gains in the low single-digits.
Against this backdrop, we stayed toward the upper end of the 10-30% range
allowable for stocks in the Fund, a position that contributed positively to
performance. Detracting from the gain, however, was an equal weighting between
growth and value stocks as value outperformed growth by nearly 6%, due in part
to a significant rise in the price of oil. +
In the bond portion of the portfolio, we maintained a bias away from longer-term
bonds. This is a stance that we have had for some time, as we remain concerned
that yields on such securities are still too low, given above average economic
growth and an active Federal Reserve. Offering a similar perspective was Federal
Reserve Chairman Alan Greenspan, whose Congressional testimony near the end of
the period reinforced our decision to limit our exposure to the longer end of
the bond market. +
INEVSTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. 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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR INCEPTION
--------- --------- ------ ---------
Institutional 8/1/02 3.53% 2.12% 6.63%
- -----------------------------------------------------------------
Class A* 8/1/02 -1.76% -3.16% 4.17%
- -----------------------------------------------------------------
Class B** 8/1/02 -1.98% -3.88% 4.46%
- -----------------------------------------------------------------
Class C** 8/1/02 2.01% 1.05% 5.58%
- -----------------------------------------------------------------
Wilshire 5000 Index 1 9.67% 7.24% 14.67%
- -----------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit Bond
Index 1 2.49% 2.57% 5.06%
- -----------------------------------------------------------------
Blended Index 1 3.92% 3.55% 7.11%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fifth Third Bond Fund 11.04%
Fifth Third Disciplined Large Cap Value Fund 7.03%
Fifth Third Institutional Money Market Fund 0.16%
Fifth Third Intermediate Bond Fund 28.79%
Fifth Third International Equity 2.00%
Fifth Third Mid Cap Growth Fund 2.54%
Fifth Third Multi Cap Value Fund 2.53%
Fifth Third Quality Growth Fund 7.08%
Fifth Third Short Term Bond Fund 32.75%
Fifth Third Small Cap Growth Fund 3.03%
Fifth Third Small Cap Value Fund 3.05%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
STRATEGIC INCOME FUND
For the six-month period ended January 31, 2005, the Fifth Third Strategic
Income Fund (Institutional Shares) advanced 5.69%, outpacing its benchmark, the
Lehman Brothers Intermediate Credit Bond Index, which returned 3.41%.
As we strive to provide investors with an optimal and stable stream of income
while attempting to mitigate the effect of interest rate movements, the Fund
holds a wide assortment of yield-producing assets. During this six-month period,
many of our positions enjoyed solid returns due to the surprising activity in
the U.S.Treasury market, where the yield on short-term bonds climbed but
long-term rates stagnated. As many had anticipated rates all along the spectrum
would advance, the actual flattening of the yield curve instigated a scramble
for higher-yielding investments elsewhere.
Beneficiaries included preferred stocks and real estate investment trusts
(REITs).The strong returns from preferred stocks, which trade like common stocks
but traditionally offer generous dividends in exchange for limited price
appreciation, were enhanced by tight supplies, which forced investors to bid up
prices of existing issues.
REITs enjoyed a stellar year, buoyed by increased investor awareness. Offering
diversification across a number of properties and healthy dividends, REITs
emerged as a popular option to capitalize on the robust real estate market.
Adding to gains was an assortment of common stocks with increasing dividend
payouts, as well as a collection of corporate bond holdings that enjoyed
significant price appreciation in the wake of the lackluster performance by
U.S.Treasury issues +.
In order to lessen the impact from a possible move higher in U.S. interest
rates, we scaled back exposure to REITs and preferred stock. We directed some of
the proceeds into mortgage-backed securities tied to adjustable-rate mortgages,
floating rate bonds and intermediate maturity corporate bonds. +
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.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
--------- -------- ------ --------
Institutional 5.69% 4.99% 10.17% 8.48%
- ---------------------------------------------------------------
Class A* 0.25% -0.43% 8.58% 7.70%
- ---------------------------------------------------------------
Class B** 0.18% -0.91% 8.83% 7.70%
- ---------------------------------------------------------------
Class C** 4.12% 3.97% 9.02% 7.65%
- ---------------------------------------------------------------
Advisor 5.44% 4.56% 9.65% 8.23%
- ---------------------------------------------------------------
Lehman Brothers
Intermediate
Credit Bond Index 1 3.41% 3.55% 8.20% 7.74%
- ---------------------------------------------------------------
Lipper Flexible
Income Funds Average 1 2.56% 0.91% 4.07% 3.81%
- ---------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Corporate Bonds Equivalents 44.20%
Corporate Bonds 23.31%
Real Estate Investment Trusts 8.52%
Investment Companies 8.22%
Common Stocks 5.68%
Preferred Stocks 3.35%
U.S. Government Agencies 2.38%
Repurchase Agreements 1.97%
U.S. Treasury Notes 1.19%
Foreign Bonds 1.18%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
18
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SELECT STOCK FUND
For the six-month period ended January 31, 2005, the Fifth Third Select Stock
Fund (Institutional Shares) gained 5.60%, trailing its benchmarks, the Russell
1000(R) Index and the Russell 1000 Growth Index, which advanced 8.92% and 6.01%,
respectively.
Holding only between 20-30 stocks, the Fund's performance will be much more
susceptible to market swings of individual companies. Regardless of the
resulting ups and downs, we maintain an emphasis on strong enterprises with
sturdy fundamentals and a high likelihood of significant growth over the long
term. +
Keeping a longer perspective sometimes means enduring rough patches for
individual stocks. For example, plastic and metal component and fastener
manufacturer Illinois Tool Works, which had been a strong performer, struggled
in the wake of market concerns over the potential impact of higher interest
rates on two of its end markets: construction and autos. +
Elsewhere, inventory issues at leading customers weighed on analog circuit maker
Maxim Integrated Products and communications gear developer Cisco Systems. As
both companies possess diversified portfolios of products serving a broad range
of industries, we'll keep watching to see how sales trends evolve. +
Broader themes also manifested themselves in positive ways. For example, as the
federal government increased its defense spending and urged further investment
in homeland security measures, L-3 Communications Holdings surged. Responsible
for the electronic brains behind complex systems in fighter jets, airport
screening technology and radar systems, L-3 has certainly been in the right
place at the right time. +
Additionally, international economic strength rooted in China's robust growth
rate fueled rising prices for raw materials such as copper, which propelled
Phelps Dodge, the world's second largest producer of the metal. Domestically, a
resurgent merger and acquisition market buoyed a rise in investment banker
Goldman Sachs Group and the convergence of favorable product cycles in several
areas of consumer electronics bolstered specialty retailer Best Buy. +
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 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
--------- -------- ------- --------
Institutional 5.60% -3.63% -10.86% 5.82%
- ----------------------------------------------------------------
Class A* 0.15% -8.70% -11.99% 5.11%
- ----------------------------------------------------------------
Class B** 0.02% -9.38% -11.93% 4.83%
- ----------------------------------------------------------------
Class C** 4.05% -4.59% -11.74% 4.83%
- ----------------------------------------------------------------
Russell 1000(R)
Index1 8.92% 6.57% -1.43% 11.59%
- ----------------------------------------------------------------
Russell 6.01% 0.70% -9.04% 8.99%
1000(R) Growth
Index1
- ----------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 7.27% 3.71% -3.03 9.48%
- ----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
EMC Corp...................................... 7.00%
Manpower, Inc................................. 6.12%
Best Buy Co., Inc............................. 6.09%
Goldman Sachs Group, Inc...................... 5.43%
L-3 Communications Holdings, Inc.............. 5.39%
Teva Pharmaceutical Industries................ 5.06%
Varian Medical Systems, Inc................... 4.75%
Nordstrom, Inc................................ 4.55%
AK Steel Holding Corp......................... 4.11%
J.R Morgan Chase & Co......................... 3.99%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
TECHNOLOGY FUND
For the six-month period ended January 31,2005, the Fifth Third Technology Fund
(Institutional Shares) advanced 8.75%, lagging its benchmark, the Merrill Lynch
100 Technology Index, which returned 10.46%.
A number of cross-currents buffeted investors during the period, including
continued instability in Iraq, higher energy prices, uncertainties surrounding
the U.S. elections and the Federal Reserve's rate-hike campaign. On the
corporate front, a buildup of inventories prompted questions about the health of
the U.S. economy.
Information technology (IT) companies generally posted better than expected
results during the period and enjoyed improving fundamentals. The sector's
stocks largely suffered, however, as the various unknowns at the macro level
prompted most companies to adopt neutral stances with regard to future growth
prospects.
One area that struggled with such conditions was semiconductors, where the
Fund's overweight stake, relative to the benchmark, hurt performance. Solid
earnings failed to register with investors who focused on muted guidance and the
group's inventory challenges. Also hampering performance was our underweight
position in the technology services industry, which rallied amid views that its
consulting and outsourced data processing outfits are essentially defensive in
nature. +
Companies touting bold growth rates and high price-to-earnings ratios2 tended to
attract the market's affections during the period, yet the slightest sign of
weakness quickly sparked sell offs. Maintaining an emphasis on long-term
prospects and measured valuations, we avoided stocks carrying high multiples and
unsustainable growth rates. +
Contributing positively was a greater-than-the-benchmark collection of storage
companies. Fundamental demand for increased storage capacity is seemingly
constant and accounted for the lion's share of corporate IT budgets as a result.
We also benefited from an underweight stake in the electronic manufacturing
services (EMS) group. Outsourcers to the computer and electronics industries,
many EMS companies were negatively affected by excess capacity, lack of pricing
power and the broad inventory buildup trend. +
2 A VALUATION RATIO OF A COMPANY'S CURRENT SHARE PRICE TO ITS PER-SHARE EARNINGS
(P/E). A HIGH P/E MEANS HIGH PROJECTED EARNINGS IN THE FUTURE.
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 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR INCEPTION
--------- --------- ------ ---------
Institutional 6/5/00 8.75% -22.75% -15.19%
- --------------------------------------------------------------
Class A* 6/5/00 3.06% -26.81% -16.33%
- --------------------------------------------------------------
Class B** 6/5/00 3.11% -27.30% -16.35%
- --------------------------------------------------------------
Class C** 6/5/00 7.00% -23.54% -16.05%
- --------------------------------------------------------------
Advisor 6/5/00 8.29% -23.19% -15.63%
- --------------------------------------------------------------
Merrill Lynch
100 Technology
Index 1 10.46% -6.45% -16.11%
- --------------------------------------------------------------
Lipper Science and
Technology Funds
Average 1 8.71% -7.60% -19.73%
- --------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31, 2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Monster Worldwide, Inc........................ 3.28%
Broadcom Corp................................. 2.57%
EMC Corp...................................... 2.43%
Avaya, Inc.................................... 2.42%
Mercury Interactive Corp...................... 2.38%
Juniper Networks, Inc......................... 2.33%
Jabil Circuit, Inc............................ 2.28%
Agilent Technologies, Inc..................... 2.24%
Texas Instruments, Inc........................ 2.15%
Network Appliance, Inc........................ 2.15%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
20
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATINAL EQUITY FUND
For the six-month period ended January 31, 2005, the Fifth Third International
Equity Fund (Institutional Shares) advanced 14.71%, lagging its benchmark, the
MSCI EAFE(R) Index, which gained 16.77%.
Equities posted strong returns worldwide during the period, contributing to
double-digit gains in nearly every country's leading market index. Against this
backdrop, the Fund was fully invested and tilted towards Asia and sectors with
cyclical characteristics. We continue to believe that global economic growth is
still supportive of equities, although it moderated somewhat during the period,
and we are not overly concerned about the prospect of rising inflation. We view
the main risk to the markets as the potential for a slowdown in growth.
Detractors from performance included an overweight position, relative to the
benchmark, in Japan, where questions about the economic outlook weighed, and
below-benchmark allocations in Australia and the United Kingdom, which both
posted solid gains. Stakes in emerging markets generated positive returns, as
did overweight positions in Austrian and Hong Kong stocks, which generally
outperformed. Less-than-the-benchmark exposure to Switzerland, which lagged,
also boosted relative performance. +
From a sector perspective, the Fund's slight underweight position in financial
service stocks and modest overweight in information technology proved a drag on
performance. Conversely, we benefited from underweight positions in two
struggling groups-health care and consumer staples. +
Remaining constructive on the outlook for the global economy and equity markets,
we do not yet see a reason why this mid-cycle economic pause should deteriorate
into a recession. Although purchasing manager orders-one of the timeliest
indicators available-have turned down around the globe, they remain at
relatively high levels. In turn, equity valuations continue to look reasonable,
in our opinion, especially considering that interest rates remain low, inflation
levels are subdued and 2005 earnings growth estimates look
attainable-particularly in the critical Asian economies.
INVESTMENT RISK CONSIDERATION
- --------------------------------------------------------------------------------
AN INVESTMENT IN THIS FUND ENTAILS THE SPECIAL RISKS OF INTERNATIONAL
INVESTING, INCLUDING CURRENCY EXCHANGE FLUCTUATION, GOVERNMENT REGULATIONS, AND
THE POTENTIAL FOR POLITICAL AND ECONOMIC INSTABILITY. THE FUND'S SHARE PRICE IS
EXPECTED TO BE MORE VOLATILE THAN THAT OF A U.S.-ONLY FUND.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
------- ------ ------ -------
Institutional 14.71% 12.89% -0.26% 6.50%
- ---------------------------------------------------------------
Class A* 8.91% 6.95% -1.42% 5.84%
- ---------------------------------------------------------------
Class B** 9.13% 6.71% -1.44% 5.49%
- ---------------------------------------------------------------
Class C** 13.13% 11.77% -1.23% 5.59%
- ---------------------------------------------------------------
Advisor 14.38% 12.33% -0.68% 6.11%
- ---------------------------------------------------------------
MSCI EAFE(R) Index 1 16.77% 16.83% 0.13% 5.10%
- ---------------------------------------------------------------
Lipper International
Large-Cap Core Funds
Average 1 14.87% 11.55% -3.07% 4.79%
- ---------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 5.00%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION
TOP TEN EQUITY HOLDINGS AS OF JANUARY 31,2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
HSBC Holdings Plc............................. 2.11%
BP Plc........................................ 2.10%
Vodafone Group Plc............................ 1.67%
Telephonic SA................................. 1.54%
Toyota Motor Corp............................. 1.46%
Royal Dutch Petroleum Co...................... 1.41%
Total SA...................................... 1.30%
GlaxoSmithKline Plc........................... 1.10%
Nestle SA..................................... 1.07%
Novartis AG................................... 0.88%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Bond Fund
(Institutional Shares) returned 3.69%, slightly underperforming its benchmark,
the Lehman Brothers Aggregate Bond Index, which advanced 3.81%.
Riskier bonds, especially corporate issues, were back in vogue during the period
as the market accepted lower credit profiles in return for extra yield. As we
remain committed to investing in higher quality issues, the Fund was
underweight, relative to the benchmark, in the lower quality arena and
performance lagged as a result.
Better quality corporate bonds rallied, too, but valuation concerns kept us from
building on the Fund's underweight stake, which hampered returns. At the
period's close, we were further unsettled by a growing willingness among
management teams to embrace mergers, acquisitions and sizeable stock buyback
programs in an effort to appease stockholders, as bondholders rarely benefit
from such tactics.
The Fund's overweight position in asset-backed securities supplied a clear lift.
Consisting primarily of bonds tied to home-equity loans, we enjoyed strong
yields while adding quality. Commercial mortgage backed securities shared an
attractive risk-reward profile and the Fund's larger-than-the-benchmark
collection helped pad returns. As fiscal discipline has kept speculative
building to a minimum and debt servicing a priority among office space
developers, related bonds have proven increasingly stable and performed
accordingly. +
To counteract the flattening of the yield curve, where short-term rates climbed
and long-term rates remained essentially flat, we maintained a barbell strategy.
Consisting of heavier weightings at the short and long ends of the maturity
spectrum-and a lighter stake among intermediate issues-the strategy allowed us
to continually roll proceeds from maturing bonds at the front end of the yield
curve into new issues offering better yields. +
The barbell strategy also facilitated a shorter duration than the benchmark-a
tactic that lessened the impact of rising rates and proved effective as the
Federal Reserve hiked its short-term interest rate four times between August
1,2004 and January 3 1,2005. +
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH++++ 1 YEAR 5 YEAR INCEPTION
---- ------- ----- ------ ---------
Institutional 3/20/95 3.69% 3.59% 7.23% 6.73%
- ----------------------------------------------------------------
Class A* 3/22/95 -1.46% -1.69% 5.95% 5.94%
- ----------------------------------------------------------------
Class B** 3/20/95 -1.93% -2.55% 5.82% 5.66%
- ----------------------------------------------------------------
Class C** 3/20/95 2.07% 2.45% 6.13% 5.66%
- ----------------------------------------------------------------
Advisor 3/20/95 3.34% 2.98% 6.69% 6.20%
- ----------------------------------------------------------------
Lehman Brothers
Aggregate Bond
Index 1 3.81% 4.16% 7.92% 7.34%
- ----------------------------------------------------------------
Lipper Corporate
Debt Funds A
Rated Average 1 3.88% 3.80% 7.17% 6.80%
- ----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 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, 1 995, 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31,2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Corporate Bonds 50.02%
U.S.Government Agencies 39.07%
Commercial Paper 4.98%
Short-Term Securities Held as Collateral for
Securities Lending 2.32%
U.S. Treasury Obligations 1.80%
Money Markets 1.15%
Municipal Bonds 0.66%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
22
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Intermediate
Bond Fund (Institutional Shares) returned 2.41%, narrowly trailing its
benchmark, the Lehman Brothers Intermediate Government/Credit Index, which
gained 2.49%.
The dominant development during the period was the flattening of the yield
curve. While yields on 2-year U.S.Treasury securities increased 62 basis points
(0.62%), rates on 10-year U.S.Treasury securities fell 32 basis points
(0.32%).The 94-point (0.94%) shift reflected the sentiment that the economy was
growing at a healthy clip, which prompted the Federal Reserve to keep raising
its short-term rates, but inflationary pressures remained benign, which
convinced bond investors to continue buying longer dated securities.
Anticipating the flattening, we had positioned the Fund with a barbell approach,
featuring larger stakes in 2- to 4-year and 10-year bonds and less exposure to
5- and 7-year debentures, which traditionally fare poorly during such periods.
Although it took some time, the strategy was finally validated during the final
half of the period when most of the flattening occurred. +
While gauging the broader trends, we bolstered the Fund's yield through
commercial mortgage backed securities (CMBS) and structured bonds tied to large
residential mortgages known as whole loans.+ Used to finance commercial real
estate projects such as offices, warehouses, hotels and storage facilities, CMBS
offered a better relative value compared to bonds of lesser quality. Whole loans
are extended to homebuyers who must take out a mortgage larger than the limits
for backing from federal agencies such as Fannie Mae and Freddie Mac-a common
occurrence in select U.S. metropolitan markets. The absence of agency support
provides for a higher yield than agency backed mortgages, but the securities we
purchased, consisting of a bundle of loans, were still rated AAA. +
On the downside, automotive bonds underperformed amid weak industry
fundamentals. Also hindering returns was the Fund's modest exposure to foreign
issues, which generally produced solid returns. +
INVESTMENT RISK CONSIDERATION
- --------------------------------------------------------------------------------
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
------- ----- ------ -------
Institutional 2.41% 1.99% 6.46% 6.26%
- --------------------------------------------------------------
Class A* -1.21% -1.74% 5.44% 5.61%
- --------------------------------------------------------------
Class B** -2.73% -3.17% 5.20% 5.24%
- --------------------------------------------------------------
Class C** 0.89% 0.99% 5.37% 5.17%
- --------------------------------------------------------------
Lehman Brothers
Intermediate
Government/Credit
Index 1 2.49% 2.57% 7.33% 7.00%
- --------------------------------------------------------------
Lipper Intermediate
Investment Grade Debt
Funds Average 1 3.52% 3.57% 7.04% 6.76%
- --------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31,2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Corporate Bonds 52.89%
U.S. Government Agencies 21.71%
Short-Term Securities Held as Collateral
for Securities Lending 20.39%
U.S. Treasury Obligations 4.26%
Foreign Bonds 0.57%
Money Markets 0.18%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SHORT TERM BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Short Term Bond
Fund (Institutional Shares) returned 0.62%, underperforming its benchmark, the
Merrill Lynch 1-3 Year Government/Corporate Bond Index, which advanced 0.76%.
While not always entirely tied to the actions of the Federal Reserve ("the
Fed"), the short term bond market's moves are highly correlated to the Fed's
moves. Consequently, as the Fed spent the period pushing its key lending rates
higher, yields rose on short term bonds.
Following the adage "don't fight the Fed," we employed a number of strategies to
offset the impact of rising rates while looking for ways to increase the Fund's
yield.
To soften the fallout from climbing rates, we maintained a
shorter-than-the-benchmark duration, which represents the average maturity date
of the Fund's holdings. At the same time, we added issues with 5-year maturities
to reduce the Fund's exposure to the poorly performing 2- to 3-year group. +
To pad the Fund's yield, we bought bonds tied to structured loans such as hybrid
adjustable rate mortgages, asset-backed securities from an assortment of
industries and commercial mortgage backed securities. Constructed in such a way
that required additional analysis, most of these issues offered a modest premium
as a result. +
One tactic we avoided was investing in high yield bonds, as we maintained our
high quality emphasis. The maneuver modestly diminished returns as investors
lacking such a discipline bid up the riskier 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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
------- ----- ------ -------
Institutional 0.62% 0.52% 4.72% 5.17%
- ---------------------------------------------------------------
Class A* -3.07% -3.20% 3.81% 4.64%
- ---------------------------------------------------------------
Class C** -0.88% -0.44% 3.67% 4.13%
- ---------------------------------------------------------------
Merrill Lynch 1-3
Year
Government/Corporate
Bond Index 1 0.76% 0.93% 5.32% 5.81%
- ---------------------------------------------------------------
Lipper Short
Investment Grade Debt
Funds Average 1 0.94% 1.05% 4.56% 5.25%
- ---------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 CLASSA 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31,2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Corporate Bonds 38.43%
Short-Term Securities Held as Collateral for
Securities Lending 26.72%
U.S. Government Agencies 23.80%
U.S. Treasury Obligations 8.88%
Money Markets 1.56%
Foreign Bonds 0.44%
Municipal Bonds 0.17%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
24
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
U.S. GOVERNMENT BOND FUND
For the six-month period ended January 31,2005, the Fifth Third U.S. Government
Bond Fund (Institutional Shares) gained 1.84%, narrowly lagging its benchmark,
the Lehman Brothers Intermediate Government Bond Index, which returned 1.88%.
Bond performance varied greatly during the period. At the short end of the yield
curve, rates steadily climbed as the Federal Reserve followed through on its
pledge to raise its key rates due to the overall health of the U.S. economy. At
the other end of the yield curve, long-term rates barely budged, due in large
part to a massive infusion of foreign investment in U.S. government debt. The
disconnect caused a flattening of the yield curve-the degree of which caught
many market observers by surprise.
Given the minimal movement in the longer dated segment of the market,
mortgage-related debentures offered steady returns. The Fund especially
benefited from differently structured mortgage-backed securities, which
compensate for added complexity with slightly better yields, yet retain high
quality ratings. +
The Fund also received a lift from Fannie Mae subordinated debt, which rallied
after the government-backed mortgage agency resolved accounting issues that had
lingered for a year. While the debt is rated below the organization's senior
debt, which translated into higher yields, we had reasoned that there was a
minimal likelihood that the agency would declare bankruptcy, and we subsequently
enjoyed a price up tick when the controversy was settled. +
Elsewhere, Ginnie Mae project loan bonds aided performance. Resembling
commercial mortgage backed securities in that the issues offer relatively high
yields but low risks, these bonds backed development projects by the
government.+
Offsetting gains was a modestly short duration position, relative to the
benchmark. The lack of movement in yields on longer-dated bonds undermined this
strategy, which best counters rising rates all along the yield curve.+
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1 YEAR 5 YEAR 10 YEAR
------- ----- ------ -------
Institutional 1.84% 1.73% 5.96% 5.77%
- -----------------------------------------------------------------
Class A* -3.16% -3.34% 4.72% 5.10%
- -----------------------------------------------------------------
Class C** 0.35% 0.74% 4.96% 4.81%
- -----------------------------------------------------------------
Lehman Brothers
Intermediate Government
Bond Index 1 1.88% 1.91% 6.67% 6.59%
- -----------------------------------------------------------------
Lipper Short-Intermediate
U.S. Government Bond Funds
Average 1 1.49% 1.30% 5.52% 5.67%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
FUND HOLDINGS AS OF JANUARY 31,2005
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Freddie Mac 35.16%
Fannie Mae 20.83%
U.S. Treasury Obligations 16.54%
Federal Home Loan Bank 12.15%
Government National Mortgage Association 9.12%
Money Markets 3.10%
Tennessee Valley Authority 1.63%
Federal Farm Credit Bank 1.47%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MUNICIPAL BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Municipal Bond
Fund (Institutional Shares) gained 3.75%, trailing its benchmark, the Lehman
Brothers Municipal Bond Index, which returned 4.80%.
Following the lead of U.S.Treasuries, the municipal bond yield curve flattened
during the period with rates on short-term issues rising and yields on long-term
bonds falling. The development reflected the general sentiment that the economy
was reasonably healthy and there was little reason to fear a large jump in the
inflation rate down the road.
Specifically within the municipal bond market, the supply of new issues in 2004
finished a little higher than expected, but the excess volume was easily
absorbed. Enhancing demand was the consistent presence of hedge funds and other
investors from outside the market's traditional group of participants.
Against this backdrop, the Fund's underperformance stemmed primarily from our
strategy of maintaining a short duration, relative to the benchmark. The
defensive tactic, which smoothes the impact of rising rates, left the Fund
under-exposed to longer-term bonds, which enjoyed healthy gains. Our orientation
toward the higher end of the quality spectrum also weighed as lower quality
bonds, especially within the hospital sector, extended a year-long rally.
Select pre-refunded bonds contributed positively to the Fund's performance. As
the issuers of the generally high quality securities announced debt refinancing
plans, our holdings experienced an up tick in prices. +
Looking ahead, we're encouraged by the recent implementation of new reporting
requirements within the municipal bond market. Trade data is now updated every
15 minutes, a significant change from the once-daily schedule formerly in place.
While adding transparency to the market, we believe the increased information
may help us make more effective buying and selling decisions.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH # 1 YEAR 5 YEAR INCEPTION
---- ------- ----- ------ ---------
Institutional 3/20/95 3.75% 3.18% 6.97% 5.81%
- -------------------------------------------------------------------
Class A* 3/31/95 -1.22% -1.95% 5.69% 5.03%
- -------------------------------------------------------------------
Class B** 3/20/95 -1.66% -2.61% 5.56% 4.74%
- -------------------------------------------------------------------
Class C** 3/20/95 2.25% 2.15% 5.91% 4.75%
- -------------------------------------------------------------------
Advisor 3/20/95 3.51% 2.58% 6.46% 5.29%
- -------------------------------------------------------------------
Lehman Brothers
Municipal Bond
Index 1 4.80% 4.86% 7.50% 6.54%
- -------------------------------------------------------------------
Lipper General
Municipal Debt Funds
Average 1 4.33% 4.06% 6.62% 5.53%
- -------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASEREFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
BOND QUALITY RATINGS AS OF JANUARY 31,2005
as represented by standerd and poor's rating agency
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
AAA 68.84%
AA+ 16.45%
AA 4.58%
AA- 3.80%
A+ 2.61%
A 0.91%
A- 1.94%
BBB 0.43%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE MUNICIPAL BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Intermediate
Municipal Bond Fund (Institutional Shares) returned 2.47%, underperforming the
Lehman Brothers Quality Intermediate Municipal Bond Index and the Lehman
Brothers Five-Year General Obligation Index, which advanced 3.14% and 2.73%,
respectively. The Fund outperformed the Lehman Brothers Three-Year General
Obligation Index, which gained 1.28%.
The Fund lagged primarily due to its short duration. A strategy designed to
buffer market moves during a period of rising rates, it proved somewhat
ineffective when rates on long-term bonds failed to increase along with those on
short-term issues. The net effect, defined as a flattening of the yield curve,
reflected the market's belief that the U.S. economy is on solid footing and that
inflationary pressures remain tepid. +
Given the Federal Reserve's stated intentions to keep bumping up short-term
interest rates, we maintained the defensive short-duration profile at the
period's close. +
To compensate for the tactical maneuvers, we looked for areas where we could
boost yield without straying far from our high quality philosophy. By combing
through out-of-favor corners of the market and investing in issues such as put
bonds, which provide the bondholder with the right to redeem notes prior to the
maturity date, we discovered an assortment of better yielding securities yet
kept the quality rating of the bulk of the Fund's holdings at an AA level or
better. +
Generally speaking, our quality discipline weighed on performance during the
period as more speculative issues rallied.
Looking ahead, we're encouraged by the recent implementation of new reporting
requirements within the municipal bond market. Trade data is now updated every
15 minutes, a significant change from the once-daily schedule formerly in place.
While adding transparency to the market, we believe the increased information
will help us make more effective buying and selling decisions.
2 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.
INVESTMENT RISK CONSIDERATION
- --------------------------------------------------------------------------------
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1YEAR 5 YEAR 10 YEAR
-------- ----- ------ -------
Institutional 2.47% 1.90% 5.53% 5.25%
- -----------------------------------------------------------------
Class A* -1.33% -1.91% 4.51% 4.61%
- -----------------------------------------------------------------
Class B** -2.64% -3.31% 4.28% 4.25%
- -----------------------------------------------------------------
Class C** 0.94% 0.96% 4.48% 4.19%
- -----------------------------------------------------------------
Lehman Brothers
Three-Year General
Obligations Index 1,2 1.28% 1.43% 4.53% 4.70%
- -----------------------------------------------------------------
Lehman Brothers
Five-Year General
Obligations Index 1,2 2.73% 2.45% 5.78% 5.52%
- -----------------------------------------------------------------
Lehman Brothers Quality
Intermediate Municipal
Bond Index 1 3.14% 2.92% 6.07% 5.77%
- -----------------------------------------------------------------
Lipper Intermediate
Municipal Debt Funds
Average 1 2.99% 2.67% 5.95% 5.51%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 3.50%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
BOND QUALITY RATINGS AS OF JANUARY 31,2005
AS REPRESENTED BY STANDERD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
AAA 69.57%
AA+ 8.58%
AA 8.08%
AA- 4.00%
A+ 1.30%
A 0.81%
A- 5.00%
BBB+ 1.64%
BBB 1.40%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
OHIO MUNICIPAL BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Ohio Municipal
Bond Fund (Institutional Shares) returned 2.37%, compared to its benchmarks, the
Lehman Brothers Municipal Bond Index, which advanced 4.80%, and the Lehman
Brothers Quality Intermediate Municipal Bond Index, which gained 3.14%.
The bulk of the Fund's underperformance may be traced to its slightly shorter
duration, relative to its benchmarks. Implemented to counteract rising interest
rates, the strategy faltered somewhat as yields on intermediate bonds-those
maturing in 5-10 years-remained essentially unchanged during the period. Helping
keep yields in check were continued gains in productivity and sustained high
foreign demand for U.S. government bonds, which offset classic rate stimulants
such as rising short-term interest rates, spiking oil prices and a resurgence of
inflation. +
As a duration strategy is designed to neutralize the impact of a broader
movement in rates, we sought out higher yielding issues to boost returns. This
prompted a slight shift in the Fund's quality orientation as bonds rated A and
BBB offered higher yields for a modest increase in risk. By the period's end,
however, the Fund's average quality remained within the AA range.
The Fund's yield also benefited from stakes in structured debt such as private
university put bonds, which provide the bondholder with the right to redeem
notes prior to the maturation date. Similarly, more prevalent sinking fund
bonds, which allow the issuer to redeem notes prior to the maturation date,
supplied additional yield.
In general, bond rating changes were minimal across Ohio during the period, as
the state's economy performed on par with rest of the nation. At the same time,
issuance remained comparable with recent years, which translated into a steady
supply of new bonds. +
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1YEAR 5 YEAR 10 YEAR
-------- ----- ------ -------
Institutional 2.37% 1.84% 5.58% 5.12%
- -----------------------------------------------------------------
Class A* -2.62% -3.23% 4.31% 4.45%
- -----------------------------------------------------------------
Class B** -3.18% -4.10% 3.91% 4.03%
- -----------------------------------------------------------------
Class C** 0.86% 0.83% 4.57% 4.19%
- -----------------------------------------------------------------
Lehman Brothers 4.80% 4.86% 7.50% 6.86%
Municipal Bond Index1
- -----------------------------------------------------------------
Lehman Brothers Quality
Intermediate Municipal
Bond Index 1 3.14% 2.92% 6.07% 5.77%
- -----------------------------------------------------------------
Lipper Ohio Intermediate
Municipal Debt Funds
Average 1 2.24% 1.65% 5.28% 4.94%
- -----------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 4.75%.
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
BOND QUALITY RATINGS AS OF JANUARY 31,2005
AS REPRESENTED BY STANDERD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
AAA 50.20%
AA+ 2.16%
AA 29.99%
AA- 0.84%
A 5.73%
A- 4.98%
BBB+ 4.06%
BBB 2.02%
Not Rated 0.02%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
28
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICHIGAN MUNICIPAL BOND FUND
For the six-month period ended January 31,2005, the Fifth Third Michigan
Municipal Bond Fund (Institutional Shares) appreciated 1.27%, outperforming the
Lehman Brothers 1-5 Year Municipal Bond Index and the underperforming the Lehman
Brothers Three-Year General Obligations Index, which returned 0.13% and 1.28%,
respectively.
Michigan's economy continued to struggle during the period, burdened by the
automobile industry's woes. Unemployment levels remained relatively high
statewide and municipalities strained to balance school budgets and sustain
services with reduced revenues. Meanwhile, the state's credit was downgraded one
step.
Such developments aren't unusual in a state long accustomed to seeing its
fortunes rise and fall with the automakers. State lawmakers, however, worked to
avoid falling into historical patterns by capping expenses and seeking
alternative sources of revenue. The fiscal discipline was welcomed as it should
better position the state for a recovery once the clouds finally lift.
Against this backdrop, lower quality bonds paced the market, which undermined
our emphasis on high quality issues. At the same time, demand for new issues
surged and investors, nervous over the stock market outlook and concerned about
rising interest rates, drove up prices, which in turn, shrunk yields. After
assessing market conditions, we started to look into modestly lower quality
issues, which compensate for the higher risk with better yields.
Our short duration strategy took longer than expected to boost returns as yields
on short- and intermediate-term municipal bonds lagged those on U.S.Treasuries,
which steadily climbed. The short duration approach, which mitigates the effect
of rising rates, started to pay off in the closing weeks of the period as rates
crept higher.
Positive contributors included some non-essential purpose bonds such as those
tied to airports. Additionally, bonds which pay interest subject to the federal
alternative minimum tax boosted the Fund's yield-a reflection of smaller market
demand for the high quality issues. +
2 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.
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 JANUARY 31, 2005
- --------------------------------------------------------------------------------
6 MONTH++++ 1YEAR 5 YEAR 10 YEAR
------- ----- ------ -------
Institutional 1.27% 0.86% 4.28% 4.26%
- --------------------------------------------------------------------------
Class A* -3.63% -4.10% 3.13% 3.60%
- --------------------------------------------------------------------------
Class B** -4.22% -5.03% 2.88% 3.22%
- --------------------------------------------------------------------------
Class C** -0.24% -0.07% 3.24% 3.22%
- --------------------------------------------------------------------------
Lehman Brothers
Three-Year General
Obligation Index 1,2 1.28% 1.43% 4.53% 4.70%
- --------------------------------------------------------------------------
Lehman Brothers 1-5
Year Municipal Bond
Index 1 0.13% 0.40% 4.78% 4.90%
- --------------------------------------------------------------------------
Lipper Other States
Short-Intermediate Municipal Debt
Fund Average 1 2.34% 1.82% 4.81% 4.52%
- --------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE. 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 FIFTH THIRD
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT
MICHIGAN MUNICIPAL BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MAY 11,
1993, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C SHARES WERE
INITIALLY OFFERED ON OCTOBER 29, 2001.THE PERFORMANCE FIGURES FOR CLASS B AND
CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR
INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND CLASS C SHARES. 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.
++++ Not Annualized.
* Reflects the maximum sales charge of 4.75%
** Reflects the maximum applicable contingent deferred sales charge.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
BOND QUALITY RATINGS AS OF JANUARY 31,2005
AS REPRESENTED BY STANDERD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
AAA 65.01%
AA+ 8.66%
AA 13.98%
AA- 0.55%
A+ 16.02%
A 1.27%
A- 2.17%
BBB+ 1.41%
BBB 1.04%
+PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
29
GLOSSARY OF TERMS
LEHMAN BROTHERS AGGREGATE BOND INDEX is a market value-weighted performance
benchmark for investment-grade fixed-rate debt issues, including government,
corporate, asset-backed and mortgage-backed securities with maturities of at
least one year.
LEHMAN BROTHERS 1-5 YEAR MUNICIPAL BOND INDEX is generally representative of
short term municipal bonds with a maturity between one and six years.
LEHMAN BROTHERS FIVE-YEAR GENERAL OBLIGATION INDEX is generally representative
of investment grade fixed rate debt obligations issued by state and local
government entities, with maturities of no more than six years.
LEHMAN BROTHERS INTERMEDIATE CREDIT BOND INDEX is comprised of publicly issued,
fixed rate, non-convertible investment grade dollar-denominated, SEC-registered
corporate debt. Included are debts issued or guaranteed by foreign sovereign
governments, municipalities, governmental agencies or international agencies.
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX is comprised of all publicly
issued, non-convertible domestic debt of the U.S. government or any agency
thereof, or any quasi-federal corporation and of corporate debt guaranteed by
the U.S. government. Only notes and bonds with minimum outstanding principal of
$1 million and minimum maturity of one year and maximum maturity often years are
included.
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.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is a broad market performance benchmark for
the tax-exempt bond market. The bonds included in this index must have a minimum
credit rating of at least Baa.They must have an outstanding par value of at
least $3 million and be issued as part of a transaction of at least $50 million.
The index includes both zero coupon bonds and bonds subject to the Alternative
Minimum tax.
LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION INDEX is a price-weighted average
based on the price-only performance of 30 blue chip stocks (the average is
computed by adding the prices of the 30 stocks and dividing by a denominator,
which has been adjusted over the years for stocks splits, stock dividends and
substitutions of stocks).
LEHMAN BROTHERS QUALITY INTERMEDIATE MUNICIPAL BOND INDEX is generally
representative of intermediate term municipal bonds with a maturity between two
and twelve years.
LIPPER BALANCED FUNDS AVERAGE consists of funds whose primary objective is to
conserve principal by maintaining at all times a balanced portfolio of both
stocks and bonds. Typically, the stock/bond ratio ranges around 60%/40%.
LIPPER CORPORATE DEBT FUNDS A RATED AVERAGE consists of funds that invests at
least 65% of their assets in corporate debt issues rated 'A' or better or
government issues.
LIPPER EQUITY INCOME FUNDS AVERAGE consists of funds that seeks relatively high
current income and growth of income through investing 60% or more of their
portfolio in equities.
LIPPER FLEXIBLE INCOME FUNDS AVERAGE consists of funds that allocates their
investments across various asset classes, including domestic common stocks,
bonds, and money market instruments with a focus on total return.
LIPPER GENERAL MUNICIPAL DEBT FUNDS AVERAGE consists of funds that invest at
least 65% of their assets in municipal debt issues in the top four credit
ratings.
LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS AVERAGE consists of funds that
invests at least 65% of their assets in investment grade debt issues (rated in
top four grades) with dollar-weighted average maturities of five to ten years.
LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE consists of funds that invests
in municipal debt issues with dollar-weighted average maturities of five- to
ten-years.
LIPPER INTERNATIONAL FUNDS AVERAGE consists of funds that invest their assets in
securities with primary trading markets outside of the United States.
30
GLOSSARY OF TERMS
LIPPER LARGE-CAP CORE FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) greater than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P Super Composite 1500 Index. Large-cap core funds have more latitude in
the companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio and three-year sales-per-share
growth value, compared to the S&P 500 Index.
LIPPER MID-CAP GROWTH FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P Super Composite 1500 Index. Mid-cap growth funds typically have an
above-average price-to-earnings ratio, price-to-book ratio and three-year
sales-per-share growth value, compared to the S&P MidCap 400 Index.
LIPPER MULTI-CAP VALUE FUNDS AVERAGE consists of funds that, by portfolio
practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap funds will generally have between 25%
to 75% of their assets invested in companies with market capitalizations (on a
three-year weighted basis) above 300% of the dollar-weighted median market
capitalization of the S&P Mid-Cap 400 Index. Multi-Cap Value funds seek
long-term growth of capital by investing in companies that are considered to be
undervalued relative to a major unmanaged stock index based on price-to-current
earnings, book value, asset value or other factors. These funds will normally
have a below-average price-to-earnings ratio, price-to-book ratio and three-year
earnings growth figure, compared to the U S diversified multi-cap funds universe
average.
LIPPER OHIO INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE consists of funds that
invests at least 65% of their assets in municipal debt issues that are exempt
from taxation in Ohio, with dollar-weighted average maturities of five to ten
years.
LIPPER OTHER STATES SHORT-INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE consists of
funds that invest in municipal debt issues with dollar-weighted average
maturities of five to ten years and are exempt from taxation on a specified city
or state basis.
LIPPER S&P 500(R) INDEX FUNDS AVERAGE consists of funds that are passively
managed, limited-expense (management fee no higher than 0.50%) fund designed to
replicate the performance of the Standard & Poor's 500(R) Index on a reinvested
basis.
LIPPER SCIENCE AND TECHNOLOGY FUNDS AVERAGE consists of funds that invests at
least 65% of their equity portfolio in science and technology stocks.
LIPPER SHORT INVESTMENT GRADE DEBT FUNDS AVERAGE consists of funds that invest
at least 65% of their assets in investment grade debt issues (rated in top four
grades) with dollar-weighted average maturities of one to five years.
LIPPER SHORT INTERMEDIATE U.S. GOVERNMENT BOND FUNDS AVERAGE consists of funds
that invest at least 65% of their assets in securities issued or guaranteed by
the U.S. government, its agencies or its instrumentalities, with dollar-weighted
average maturities of one to five years.
LIPPER SMALL-CAP CORE FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of the
S&P Super Composite 1500 Index. Small-cap core funds have more latitude in the
companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P Small Cap 600 Index.
LIPPER SMALL-CAP VALUE FUNDS AVERAGE consists of funds that by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of S&P
Super Composite 1500 Index. Small-cap value funds typically have a below-average
price-to-earnings ratio, price-to-book ratio and three-year sales-per-share
growth value, compared to the S&P Small Cap 600 Index.
31
GLOSSARY OF TERMS
MERRILL LYNCH 100 TECHNOLOGY INDEX is a equal-dollar weighted index of 100
stocks designed to measure the performance of a cross-section of large, actively
traded technology stocks and American Depositary Receipts.
MERRILL LYNCH 1-3 YEAR GOVERNMENT CORPORATE BOND INDEX tracks the trading of
short-term U.S. government securities and short-term domestic investment-grade
corporate bonds with maturities between 1 and 2.99 years.
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST
(EAFE)(R) INDEX is a market capitalization-weighted equity index comprising 20
of the 48 countries in the MSCI universe and representing the developed world
outside of North America. Each MSCI country index is created separately, then
aggregated, without change, into regional MSCI indices. EAFE performance data is
calculated in U.S. dollars and in local currency.
RUSSELL 1000(R) INDEX measures the performance of 1,000 largest companies in the
Russell 3000(R) Index, which represents approximately 92% of the total market
capitalization of the Russell 3000(R) Index.
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.
RUSSELL 1000 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.
RUSSELL 2000(R) GROWTH INDEX is comprised of the securities in the Russell
2000(R) Index with a greater-than-average growth orientation. Companies in this
index tend to exhibit higher price-to-book and price-to-earnings ratios.
RUSSELL 2000(R)VALUE INDEX is comprised of the securities in the Russell 2000(R)
Index with a less-than-average growth orientation. Companies in this index
generally have low price-to-book and price-to-earnings ratios.
RUSSELL 3000(R)VALUE INDEX measures the performance of the 3,000 largest U.S.
companies based on total market capitalization, which represents approximately
98% of the invest able U.S. equity market.
RUSSELL MIDCAP(R) GROWTH INDEX measures the performance of those securities
found in the Russell MidCap universe with higher price-to-book ratios and higher
forecasted growth values. The stocks are also members of the Russell 1000(R)
Growth Index.
STANDARD & POOR'S 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.
WILSHIRE 5000 INDEX measures the performance of all U.S.-headquartered equity
securities with readily available price data.
The above indices are unmanaged and do not reflect the deduction of fees
associated with a mutual fund such as investment management and fund accounting
fees. However, the Lipper Average 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 securities or funds.
THE FIFTH THIRD LIFEMODEL BLENDED INDICES are hypothetical unmanaged indices
comprised of a percentage of the Wilshire Index and Lehman Brothers Intermediate
Government/Credit Bond Index. The Blended Index was created by Fifth Third Asset
Management, Inc. The Fund will not necessarily maintain a similar weighting at
all times but will invest within a range of stock, bond, and money market funds
as described in the prospectus. Below is a table which indicates the percentage
breakdown for each Fund.
LEHMAN BROTHERS
INTERMEDIATE
GOVERNMENT/CREDIT
WILSHIRE 5000 INDEX BOND INDEX
Fifth Third LifeModel Aggressive Fund 90% 10%
Fifth Third LifeModel Moderately Aggressive Fund 70% 30%
Fifth Third LifeModel Moderate Fund 50% 50%
Fifth Third LifeModel Moderately Conservative Fund 40% 60%
Fifth Third LifeModel Conservative Fund 20% 80%
32
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (96.2%)
Acuity Brands, Inc. 40,000 $ 1,099
Affiliated Managers Group, Inc. * (g) 37,450 2,375
Akamai Technologies, Inc. * (g) 125,000 1,638
Altiris, Inc. * 58,478 1,901
American Medical Systems
Holdings, Inc. * (g) 50,000 1,963
ANSYS, Inc. * 20,000 646
aQuantive, Inc. * (g) 100,000 927
Ariad Pharmaceuticals, Inc. * 140,000 1,051
Array BioPharma, Inc. * 100,000 888
ArthroCare Corp. * (g) 50,000 1,488
Ask Jeeves, Inc. * (g) 30,278 859
Avid Technology, Inc. * 27,417 1,729
Avocent Corp. * 40,000 1,460
Axcelis Technologies, Inc. * 120,000 896
BankUnited Finanical Corp. * 35,000 1,021
Belden CDT, Inc. (g) 120,000 2,437
Benchmark Electronics, Inc. * 81,158 2,595
Bone Care International, Inc. * 45,000 1,274
Carpenter Technology Corp. 35,000 2,144
Carrier Access Corp. * 105,000 775
Centene Corp. * 84,600 2,838
Central Garden & Pet Co. * 74,000 3,033
Ceradyne, Inc. * (g) 83,925 2,831
Children's Place Retail Stores, Inc. * 106,545 4,042
CKE Restaurants, Inc. * (g) 240,000 3,480
Cognex Corp. 45,000 1,175
Coherent, Inc. * 56,750 1,703
Commercial Capital Bancorp., Inc. 100,000 1,989
Commscope, Inc. * (g) 70,000 1,052
Comstock Resources, Inc. * 108,917 2,555
Core Laboratories N.V. * 85,000 1,835
Denbury Resources, Inc. * 70,000 2,044
Direct General Corp. 51,700 970
Ditech Communications Corp. * 40,000 532
East-West Bancorp., Inc. 67,734 2,637
ElkCorp 40,000 1,619
Embarcadero Technologies, Inc. * 206,083 1,616
Engineered Support Systems, Inc. 72,450 4,203
Epicor Software Corp. * 221,000 2,980
EPIX Medical, Inc. * 84,095 812
F5 Networks, Inc. * 70,000 3,356
First American Financial Corp. 24,321 899
First Bancorp./Puerto Rico 30,000 1,623
First Cash Financial Services, Inc. * 112,500 2,916
FLIR Systems, Inc. * (g) 32,300 1,969
FormFactor, Inc. * 50,000 1,139
Forward Air Corp. * 50,000 2,131
FSI International, Inc. * 105,000 450
GEN-Probe, Inc. * (g) 32,300 1,577
General Cable Corp. * 240,000 2,897
Given Imaging, Ltd. * (g) 60,000 2,002
Global Payments, Inc. (g) 31,123 1,783
Grey Wolf, Inc. * (g) 400,000 2,120
Harmonic, Inc. * 236,872 2,699
Headwaters, Inc. * (g) 60,000 1,908
HealthExtras, Inc. * 75,000 1,157
Hibbet Sporting Goods, Inc. * 48,625 1,255
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Hutchinson Technology, Inc. * (g) 20,000 $ 706
Hydril * 20,000 1,000
Hyperion Solutions Corp. * 30,000 1,441
I-Flow Corp. * 75,000 1,317
IDX Systems Corp. * 28,000 869
Immucor, Inc. * 60,000 1,836
Infospace, Inc. * 25,000 1,180
J.B. Hunt Transport Services, Inc. 56,750 2,504
Jacuzzi Brands, Inc. * 300,000 3,030
JAMDAT Mobile, Inc. * 33,043 725
Jarden Corp. * (g) 79,017 3,634
Jefferies Group, Inc. 44,878 1,750
Joy Global, Inc. 99,300 2,773
Labor Ready, Inc. * (g) 208,244 3,299
MGI Pharma, Inc. * (g) 64,822 1,471
Microsemi Corp. * 114,000 1,759
Navigant Consulting, Inc. * (g) 96,578 2,311
NCI Building Systems, Inc. * 30,000 1,139
NitroMed, Inc. * (g) 55,000 1,411
NMS Communications Corp. * 235,000 1,481
OMI Corp. 140,000 2,450
Openwave Systems, Inc. * 70,000 953
Oshkosh Truck Corp. 34,772 2,552
Overseas Shipholding Group, Inc. 25,000 1,395
Pacific Sunwear of California, Inc. * (g) 60,000 1,469
Parametric Technology Corp. * (g) 680,000 3,875
Pharmion Corp. * 36,000 1,305
Plantronics, Inc. 28,583 1,064
PLX Technology, Inc. * 231,900 2,134
Progress Software Corp. * 78,533 1,692
Psychiatric Solutions, Inc. * 50,000 1,770
Quiksilver, Inc. * (g) 105,000 3,136
RAE Systems, Inc. * (g) 100,000 678
Range Resources Corp. 45,000 999
RC2 Corp. * 104,028 3,012
Regis Corp. 54,139 2,160
Respironics, Inc. * 31,123 1,802
Rigel Pharmaceuticals, Inc. * 75,000 1,439
Salesforce.com, Inc. * 40,000 548
Salix Pharmaceuticals, Ltd. * 93,591 1,409
Sapient Corp. * (g) 240,050 1,892
Scientific Games Corp. * 44,000 1,132
SCS Transportation, Inc. * 104,028 2,436
Semtech Corp. * (g) 71,061 1,306
Serologicals Corp. * 70,850 1,675
SI International, Inc. * 65,000 1,664
Skyworks Solutions, Inc. * 100,000 759
Sonus Networks, Inc. * 150,000 920
Stage Stores, Inc. * 40,000 1,581
Steel Dynamics, Inc. 90,000 3,402
Stein Mart, Inc. * 100,000 1,973
Sterling Financial Corp. * 40,000 1,500
Superior Energy Services, Inc. * 162,000 2,579
Sybron Dental Specialties, Inc. * 30,000 1,133
Technical Olympic USA, Inc. (g) 45,000 1,223
Tekelec * 121,900 2,225
Telik, Inc. * 89,761 1,708
Texas Industries, Inc. 20,000 1,271
CONTINUED
33
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Trimble Navigation Ltd. * (g) 120,975 $ 4,301
Tsakos Energy Navigation Ltd. 80,000 2,875
UbiquiTel, Inc. * 120,000 839
United Surgical Partners
International, Inc. * (g) 44,950 1,771
Urban Outfitters, Inc. * 79,588 3,348
Varian Semiconductor Equipment
Associates, Inc. * 46,061 1,579
VCA Antech, Inc. * 133,778 2,481
Ventana Medical Systems, Inc. * 20,000 1,346
Ventiv Health, Inc. * 80,000 1,871
WCI Communities, Inc. * 110,000 3,504
Western Digital Corp. * 80,000 862
Wind River Systems, Inc. * 50,000 628
Wintrust Financial Corp. 33,417 1,854
Zenith National Insurance Corp. 20,000 945
------------
TOTAL COMMON STOCKS 235,054
------------
TREASURY BILLS (0.6%)
2.15%, 3/24/05 ** (a) $ 1,500 1,495
------------
TOTAL TREASURY BILLS 1,495
------------
REPURCHASE AGREEMENTS (3.2%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $7,920,
Collateralized by various U.S. Treasury
securities) 7,919 7,919
------------
TOTAL REPURCHASE AGREEMENTS 7,919
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (19.4%)
Pool of various securities for
Fifth Third Funds 47,408 47,408
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 47,408
------------
TOTAL INVESTMENTS (COST $241,188) + - 119.4% 291,876
LIABILITIES IN EXCESS OF OTHER ASSETS - (19.4)% (47,431)
------------
NET ASSETS - 100.0% $ 244,445
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (96.6%)
A.G. Edwards, Inc. (g) 85,300 $ 3,639
Advance Auto Parts, Inc. * 168,000 7,241
Alberto-Culver Co., Class B (g) 112,000 6,076
American Capital Strategies Ltd. (g) 160,035 5,441
Andrew Corp. * (g) 366,696 4,789
Apache Corp. 117,300 6,384
Avaya, Inc. * 341,400 4,899
Avocent Corp. * 201,400 7,353
Beckman Coulter, Inc. 100,000 6,700
Biomet, Inc. 140,000 5,947
Burlington Resources, Inc. 141,400 6,181
CACI International, Inc., Class A * 102,700 5,356
Caremark Rx, Inc. * 245,350 9,593
Cephalon, Inc. * (g) 160,000 7,872
Charles River Laboratories
International, Inc. * (g) 138,668 6,570
Chico's FAS, Inc. * (g) 169,400 8,924
Cintas Corp. 106,700 4,641
CNET Networks, Inc. * (g) 506,720 5,574
Cognizant Technology Solutions
Corp., Class A * (g) 149,400 5,662
Corporate Executive Board Co. 109,300 6,984
Covance, Inc. * 193,400 8,220
Cytyc Corp. * 298,700 7,483
D. R. Horton, Inc. 242,700 9,654
Dollar Tree Stores, Inc. * 190,700 5,193
Education Management Corp. * 160,000 5,110
Engineered Support Systems, Inc. 93,300 5,412
Fastenal Co. (g) 86,700 5,213
Fidelity National Financial, Inc. 185,400 8,124
Fiserv, Inc. * 198,700 7,600
Fisher Scientific International, Inc. * (g) 142,700 9,011
GameStop Corp., Class A * (g) 193,400 3,692
Gentex Corp. 140,000 4,736
Gilead Sciences, Inc. * 194,700 6,445
GlobalSantaFe Corp. 146,700 5,187
Hughes Supply, Inc. 248,000 7,535
International Rectifier Corp. * (g) 170,700 6,682
ITT Industries, Inc. 72,000 6,141
Jabil Circuit, Inc. * 314,700 7,417
Joy Global, Inc. 217,400 6,072
Laureate Education, Inc. * 169,400 7,515
Lennar Corp., Class A (g) 112,000 6,325
Manpower, Inc. 88,000 4,281
Michael's Stores, Inc. (g) 229,400 7,054
National-Oilwell, Inc. * (g) 158,700 5,853
Network Appliance, Inc. * 129,100 4,111
Nextel Partners Inc., Class A * (g) 413,400 8,223
North Fork Bancorp. 188,000 5,396
Plantronics, Inc. 146,700 5,459
Polo Ralph Lauren 205,400 8,000
Radio One, Inc., Class D * (g) 305,400 4,795
Scientific-Atlanta, Inc. (g) 165,400 5,013
Skyworks Solutions, Inc. * 741,700 5,630
Stericycle, Inc. * 85,300 4,387
T. Rowe Price Group, Inc. 136,000 8,139
CONTINUED
34
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Tempur-Pedic International, Inc. * 312,000 $ 6,674
The Cheesecake Factory, Inc. * (g) 148,050 4,792
The Valspar Corp. (g) 93,300 4,572
Thermo Electron Corp. * 208,000 6,228
Varian Inc. * 132,000 5,271
Varian Medical Systems, Inc. * 181,400 6,844
VeriSign, Inc. * (g) 186,700 4,824
WESCO International, Inc. * 198,700 6,714
Williams-Sonoma, Inc. * 166,700 5,768
XTO Energy, Inc. 165,370 5,938
Zebra Technologies Corp., Class A * 69,875 3,559
------------
TOTAL COMMON STOCKS 402,118
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (22.2%)
Pool of various securities for
Fifth Third Funds $ 92,474 92,474
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 92,474
------------
TOTAL INVESTMENTS (COST $408,852) + - 118.8% 494,592
LIABILITIES IN EXCESS OF OTHER ASSETS - (18.8)% (78,251)
NET ASSETS - 100.0% $ 416,341
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (99.9%)
3M Co. 252,000 $ 21,259
Accenture Ltd., Class A * 777,000 20,241
Agilent Technologies, Inc. * 1,127,000 24,918
Amgen, Inc. * 249,000 15,498
Avaya, Inc. * (g) 994,000 14,264
Bank of New York Co., Inc. 325,000 9,656
Best Buy Co., Inc. 464,000 24,959
Broadcom Corp., Class A * (g) 836,000 26,610
Caremark Rx, Inc. * 240,000 9,384
Cintas Corp. (g) 590,000 25,665
Comverse Technology, Inc. * (g) 443,000 9,901
Eaton Corp. 142,000 9,655
EMC Corp. * 2,468,000 32,331
Emerson Electric Corp. 244,000 16,407
Exxon Mobil Corp. 204,000 10,526
Flextronics International Ltd. * (g) 486,000 6,877
General Electric Corp. 709,000 25,616
Genzyme Corp. * 342,000 19,908
Gilead Sciences, Inc. * (g) 780,000 25,818
Goldman Sachs Group, Inc. 321,000 34,620
Harley-Davidson, Inc. 225,000 13,525
Henry Schein, Inc. * 293,000 19,941
Home Depot, Inc. 940,000 38,784
IBM Corp. 196,000 18,310
Illinois Tool Works, Inc. 132,000 11,481
International Game Technology 974,000 30,486
Jabil Circuit, Inc. * 385,000 9,074
Juniper Networks, Inc. * (g) 526,000 13,218
L-3 Communications Holdings, Inc. (g) 273,000 19,495
Lehman Brothers Holdings, Inc. 180,000 16,414
Lowe's Cos., Inc. (g) 173,000 9,859
Manpower, Inc. 614,000 29,871
Marriott International, Inc. 158,000 9,982
Maxim Integrated Products, Inc. (g) 518,000 20,207
Mellon Financial Corp. 752,000 22,071
Microsoft Corp. 1,172,000 30,800
Motorola, Inc. (g) 1,445,000 22,745
Network Appliance, Inc. * 305,000 9,711
Nordstrom, Inc. 471,000 22,726
Northern Trust Corp. (g) 603,000 26,315
Rockwell Automation, Inc. 139,000 7,874
Schlumberger Ltd. (g) 145,000 9,866
Sysco Corp. 420,000 14,687
Teva Pharmaceutical Industries Ltd., ADR 941,000 27,035
Texas Instruments, Inc. 1,497,000 34,745
United Technologies Corp. 123,000 12,384
Varian Medical Systems, Inc. * (g) 526,000 19,846
Wal-Mart Stores, Inc. 338,000 17,711
WellPoint, Inc. * 127,000 15,431
Xilinx, Inc. (g) 603,000 17,602
Zimmer Holdings, Inc. * 123,000 9,699
------------
TOTAL COMMON STOCKS 966,008
------------
CONTINUED
35
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
REPURCHASE AGREEMENTS (0.1%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $1,093,
Collateralized by a U.S. Treasury
security) $ 1,093 $ 1,093
------------
TOTAL REPURCHASE AGREEMENTS 1,093
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (7.2%)
Pool of various securities for
Fifth Third Funds 69,123 69,123
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 69,123
------------
TOTAL INVESTMENTS (COST $918,859) + - 107.2% 1,036,224
LIABILITIES IN EXCESS OF OTHER ASSETS - (7.2)% (69,867)
------------
NET ASSETS - 100.0% $ 966,357
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (94.9%)
ACE Ltd. (g) 23,243 $ 1,009
Adolph Coors Co. (g) 8,250 615
Allstate Corp. 19,212 969
Altria Group, Inc. 9,026 576
American International Group, Inc. 32,077 2,125
Applied Materials, Inc. * (g) 41,050 653
Archer-Daniels-Midland Co. (g) 44,538 1,078
Autoliv, Inc. 5,966 281
Automatic Data Processing, Inc. 22,405 974
Ball Corp. 22,593 965
Bank of America Corp. 48,212 2,236
Bausch & Lomb, Inc. (g) 15,415 1,124
Becton, Dickinson & Co. 17,494 991
BellSouth Corp. 22,800 598
Black & Decker Corp. 3,150 260
BMC Software, Inc. * 53,422 899
Boeing Co. (g) 19,193 971
Cardinal Health, Inc. 10,300 580
ChevronTexaco Corp. 30,087 1,637
CIGNA Corp. (g) 12,181 978
Cisco Systems, Inc. * 29,088 525
Citigroup, Inc. 34,157 1,675
Coca-Cola Co. 10,621 441
Computer Sciences Corp. * 17,627 908
ConocoPhillips 12,931 1,200
Constellation Energy Group, Inc. 22,733 1,137
Deere & Co. 13,355 927
Dell, Inc. * 14,688 613
Doral Financial Corp. (g) 5,246 227
Eaton Corp. 13,732 934
Emerson Electric Corp. 11,650 783
Exxon Mobil Corp. 68,427 3,530
Federated Department Stores, Inc. 15,500 880
FedEx Corp. 3,194 306
First Energy Corp. 25,149 1,000
Ford Motor Co. 67,872 894
Gap, Inc. (g) 2,812 62
General Dynamics Corp. 3,000 310
General Electric Corp. 46,551 1,681
Gillette Co. 21,600 1,095
Harris Corp. 5,146 333
Home Depot, Inc. 14,114 582
IBM Corp. 20,663 1,931
IMS Health, Inc. 20,271 474
Ingersoll-Rand Co., Class A 5,333 397
Intel Corp. 80,021 1,797
International Flavors &
Fragrances, Inc. 5,800 245
J.C. Penney Co., Inc. 24,001 1,025
J.P. Morgan Chase & Co. 46,613 1,740
Jefferson-Pilot Corp. 19,123 954
Johnson & Johnson 35,565 2,301
Kellogg Co. 22,249 993
Kimberly-Clark Corp. 15,099 989
Lincoln National Corp. 21,286 982
Masco Corp. 27,201 1,001
CONTINUED
36
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
MBNA Corp. 35,248 $ 937
McDonald's Corp. 30,993 1,004
McGraw-Hill Cos., Inc. 10,855 982
Medco Health Solutions, Inc. * 23,886 1,017
Merck & Co., Inc. 25,634 719
Mercury General Corp. 4,146 236
MetLife, Inc. 24,528 975
Microsoft Corp. (a) 117,927 3,099
Motorola, Inc. 57,770 909
National City Corp. 26,462 941
NCR Corp. * 28,706 981
Nordstrom, Inc. 21,263 1,027
Occidental Petroleum Corp. 17,026 994
PepsiCo, Inc. 26,269 1,411
Pfizer, Inc. 88,315 2,134
Phelps Dodge Corp. 3,856 371
Pitney Bowes, Inc. 18,850 843
PPG Industries, Inc. 14,578 1,002
Procter & Gamble Co. 14,646 780
Progressive Corp. 11,700 979
Prudential Financial, Inc. 18,079 975
Reynolds American, Inc. (g) 9,681 779
Rohm & Haas Co. 10,800 478
SBC Communications, Inc. 25,368 603
Schlumberger Ltd. 14,579 992
Sempra Energy 27,089 1,008
Tektronix, Inc. 18,997 547
Tellabs, Inc. * (g) 74,000 527
Texas Instruments, Inc. 34,828 808
The Dun & Bradstreet Corp * 5,331 310
Time Warner, Inc. * 71,047 1,279
Tyco International Ltd. (g) 34,474 1,246
Tyson Foods, Inc., Class A 14,581 250
United Parcel Service, Inc. 4,941 369
United Technologies Corp. 10,287 1,036
UnitedHealth Group, Inc. 12,529 1,114
Verizon Communications, Inc. 39,000 1,388
Vulcan Materials Co. 1,713 97
Wachovia Corp. 25,502 1,399
Wal-Mart Stores, Inc. (a) 18,624 976
WellPoint, Inc. * 8,640 1,050
Wells Fargo & Co. 24,461 1,499
Wendy's International, Inc. 11,450 449
Weyerhaeuser Co. 14,782 922
Xerox Corp. * (g) 58,415 928
YUM! Brands, Inc. 20,956 971
------------
TOTAL COMMON STOCKS 97,732
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
REPURCHASE AGREEMENTS (5.0%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $5,154,
Collateralized by various U.S. Treasury
securities) $ 5,154 $ 5,154
------------
TOTAL REPURCHASE AGREEMENTS 5,154
------------
MONEY MARKETS (0.0%)
Dreyfus Cash Management Money
Market Fund 1 --#
------------
TOTAL MONEY MARKETS --#
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (8.6%)
Pool of various securities for
Fifth Third Funds $ 8,804 8,804
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 8,804
------------
TOTAL INVESTMENTS (COST $95,705) + - 108.5% 111,690
LIABILITIES IN EXCESS OF OTHER ASSETS - (8.5)% (8,774)
------------
NET ASSETS - 100.0% $ 102,916
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
37
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (98.9%)
3M Co. 32,721 $ 2,760
Abbott Laboratories 65,345 2,942
ACE Ltd. (g) 11,987 520
ADC Telecommunications, Inc. * 33,866 87
Adobe Systems, Inc. (g) 10,121 576
Adolph Coors Co. (g) 1,591 119
Advanced Micro Devices, Inc. * (g) 16,310 258
AES Corp. * 27,114 381
Aetna, Inc. (g) 6,222 791
Affiliated Computer Services, Inc.,
Class A * (g) 5,404 293
AFLAC, Inc. 21,391 845
Agilent Technologies, Inc. * 20,501 454
Air Products and Chemicals, Inc. 9,598 565
Alberto-Culver Co., Class B 3,870 210
Albertson's, Inc. 15,529 355
Alcoa, Inc. 36,704 1,084
Allegheny Energy, Inc. * (g) 5,881 114
Allegheny Technologies, Inc. 4,042 97
Allergan, Inc. 5,560 422
Allied Waste Industries, Inc. * (g) 13,150 109
Allstate Corp. 28,755 1,450
Alltel Corp. 12,555 691
Altera Corp. * (g) 15,697 301
Altria Group, Inc. (g) 86,165 5,501
AMBAC Financial Group, Inc. 4,576 352
Amerada Hess Corp. (g) 3,850 334
Ameren Corp. (g) 8,190 410
American Electric Power Co. 16,695 588
American Express Co. 52,763 2,815
American International Group, Inc. 109,539 7,262
American Power Conversion Corp. 7,324 156
American Standard Companies, Inc. * 9,035 362
AmerisourceBergen Corp. (g) 4,375 255
Amgen, Inc. * 53,409 3,324
AmSouth Bancorp. (g) 14,930 372
Anadarko Petroleum Corp. 10,561 699
Analog Devices, Inc. 15,971 573
Andrew Corp. * 6,724 88
Anheuser-Busch Co., Inc. (g) 33,233 1,634
Aon Corp. (g) 13,340 303
Apache Corp. 13,761 749
Apartment Investment &
Management Co. (g) 3,967 142
Apollo Group, Inc., Class A * (g) 7,801 610
Apple Computer, Inc. * 16,917 1,301
Applied Biosystems Group 8,536 171
Applied Materials, Inc. * (g) 71,659 1,139
Applied Micro Circuits Corp. * 13,711 45
Archer-Daniels-Midland Co. (g) 27,477 665
Ashland, Inc. 3,001 184
AT&T Corp. (g) 33,564 644
Autodesk, Inc. (g) 9,582 281
Automatic Data Processing, Inc. 24,647 1,072
AutoNation, Inc. * 11,276 215
AutoZone, Inc. * (g) 3,243 289
Avaya, Inc. * 19,215 276
Avery Dennison Corp. 4,669 281
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Avon Products, Inc. (g) 19,953 $ 842
Baker Hughes, Inc. 14,089 610
Ball Corp. 4,745 203
Bank of America Corp. 169,922 7,878
Bank of New York Co., Inc. 32,832 975
Bausch & Lomb, Inc. (g) 2,224 162
Baxter International, Inc. 25,940 876
BB&T Corp. (g) 23,388 923
Bear, Stearns & Co., Inc. 4,350 440
Becton, Dickinson & Co. 10,572 599
Bed Bath & Beyond, Inc. * 12,689 511
BellSouth Corp. 77,237 2,027
Bemis Co. 4,483 130
Best Buy Co., Inc. 13,716 738
Big Lots, Inc. * 4,792 54
Biogen Idec, Inc. * (g) 13,924 905
Biomet, Inc. 10,720 455
BJ Services Co. (g) 6,826 328
Black & Decker Corp. 3,357 276
BMC Software, Inc. * 9,373 158
Boeing Co. (g) 35,413 1,792
Boston Scientific Corp. * 35,530 1,175
Bristol-Myers Squibb Co. (g) 82,065 1,924
Broadcom Corp., Class A * 13,596 433
Brown-Forman Corp. 5,123 247
Brunswick Corp. 4,039 186
Burlington Northern Santa Fe Corp. 15,706 757
Burlington Resources, Inc. 16,127 705
C.R. Bard, Inc. 4,427 300
Calpine Corp. * (g) 22,849 76
Campbell Soup Co. 17,325 508
Capital One Financial Corp. (g) 10,191 798
Cardinal Health, Inc. 18,162 1,023
Caremark Rx, Inc. * 19,049 745
Carnival Corp. (g) 26,707 1,539
Caterpillar, Inc. (g) 14,211 1,266
Cendant Corp. 44,548 1,049
Centerpoint Energy, Inc. (g) 13,132 148
Centex Corp. (g) 5,217 320
CenturyTel, Inc. 5,655 184
Charles Schwab Corp. 55,734 626
ChevronTexaco Corp. 89,040 4,845
Chiron Corp. * 7,932 261
Chubb Corp. 8,057 600
Ciena Corp. * 23,740 61
CIGNA Corp. (g) 5,510 442
Cincinnati Financial Corp. 7,113 314
Cinergy Corp. 7,615 307
Cintas Corp. (g) 7,234 315
Circuit City Stores, Inc. 8,321 119
Cisco Systems, Inc. * (g) 276,965 4,995
CIT Group, Inc. 8,902 359
Citigroup, Inc. 218,519 10,719
Citizens Communications Co. (g) 13,898 187
Citrix System, Inc. * 7,068 152
Clear Channel Communications, Inc. 24,089 781
Clorox Co. 6,401 380
CMS Energy Corp. * (g) 8,138 86
CONTINUED
38
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Coach, Inc. * 7,945 $ 446
Coca-Cola Co. 101,757 4,221
Coca-Cola Enterprises, Inc. 19,797 435
Colgate-Palmolive Co. 22,406 1,177
Comcast Corp., Class A * (g) 93,247 3,002
Comerica, Inc. 7,236 419
Compass Bancshares, Inc. 5,104 239
Computer Associates International, Inc. (g) 24,704 672
Computer Sciences Corp. * 7,968 411
Compuware Corp. * 16,147 111
Comverse Technology, Inc. * 8,269 185
ConAgra, Inc. 21,449 633
ConocoPhillips 29,049 2,695
Consolidated Edison, Inc. (g) 10,182 447
Constellation Energy Group, Inc. 7,404 370
Convergys Corp. * 5,973 85
Cooper Industries Ltd. 3,613 251
Cooper Tire & Rubber Co. 3,108 67
Corning, Inc. * (g) 58,830 644
Costco Wholesale Corp. 19,460 920
Countrywide Credit Industries, Inc. 24,462 905
CSX Corp. 9,074 363
Cummins Engine, Inc. 1,853 144
CVS Corp. 16,857 781
Dana Corp. 6,356 101
Danaher Corp. (g) 13,011 714
Darden Restaurants, Inc. 6,597 195
Deere & Co. 10,473 727
Dell, Inc. * 104,456 4,361
Delphi Automotive Systems Corp. (g) 23,689 180
Delta Air Lines, Inc. * (g) 5,190 28
Devon Energy Corp. 20,407 830
Dillards Department Stores, Inc. 3,469 91
Dollar General Corp. (g) 13,877 280
Dominion Resources, Inc. 13,923 966
Dover Corp. 8,598 329
Dow Chemical Co. 39,631 1,970
Dow Jones & Co. 3,487 133
DTE Energy Co. 7,326 321
Duke Energy Corp. (g) 40,494 1,084
Dynegy, Inc. * 15,719 70
E*TRADE Financial Corp. * 15,714 216
E. I. du Pont de Nemours & Co. 41,603 1,978
Eastman Chemical Co. 3,270 177
Eastman Kodak Co. (g) 12,100 400
Eaton Corp. 6,397 435
eBay, Inc. * 27,884 2,273
Ecolab, Inc. 10,873 366
Edison International, Inc. (g) 13,744 446
El Paso Energy Corp. (g) 27,099 295
Electronic Arts, Inc. * 12,815 825
Electronic Data Systems Corp. (g) 21,633 463
Eli Lilly & Co. 47,698 2,587
EMC Corp. * 99,814 1,308
Emerson Electric Corp. 17,730 1,192
Engelhard Corp. 5,190 156
Entergy Corp. 9,211 640
EOG Resources, Inc. 4,947 367
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Equifax, Inc. 5,718 $ 162
Equity Office Properties Trust 17,029 477
Exelon Corp. (g) 27,840 1,231
Express Scripts, Inc. * 3,277 243
Exxon Mobil Corp. 271,277 13,999
Family Dollar Stores, Inc. 7,054 236
Fannie Mae 40,828 2,637
Federated Department Stores, Inc. 7,165 407
Federated Investors, Inc. 4,591 135
FedEx Corp. 12,674 1,212
Fifth Third Bancorp. (b) 23,551 1,094
First Data Corp. 34,885 1,421
First Energy Corp. 13,910 553
First Horizon National Corp. 5,215 222
Fiserv, Inc. * 8,248 315
Fisher Scientific International, Inc. * 4,851 306
Fluor Corp. (g) 3,477 186
Ford Motor Co. 77,206 1,017
Forest Laboratories, Inc. * 15,627 649
Fortune Brands, Inc. 6,073 510
FPL Group, Inc. (g) 7,812 599
Franklin Resources, Inc. 10,526 714
Freddie Mac 28,975 1,892
Freeport-McMoRan Copper & Gold,
Inc., Class B (g) 7,479 275
Freescale Semiconductor, Inc. * 15,567 272
Gannett, Inc. 10,686 855
Gap, Inc. (g) 36,988 814
Gateway, Inc. * 15,774 75
General Dynamics Corp. 8,434 871
General Electric Corp. (a) 444,625 16,065
General Mills, Inc. 15,306 811
General Motors Corp. (g) 23,838 877
Genuine Parts Co. 7,398 313
Genzyme Corp. * 9,623 560
Georgia Pacific Corp. 10,847 348
Gilead Sciences, Inc. * 18,172 601
Gillette Co. 41,685 2,114
Golden West Financial Corp. (g) 12,884 833
Goldman Sachs Group, Inc. 20,275 2,187
Goodrich Corp. 5,019 172
Goodyear Tire & Rubber Co. * (g) 7,325 113
Great Lakes Chemical Corp. 2,207 58
Guidant Corp. 13,385 970
H & R Block, Inc. (g) 6,960 336
H.J. Heinz Co. 14,751 558
Halliburton Co. (g) 21,084 867
Harley-Davidson, Inc. 12,450 748
Harrah's Entertainment, Inc. (g) 4,723 299
Hartford Financial Services Group, Inc. (g) 12,370 832
Hasbro, Inc. 7,463 146
HCA, Inc. 17,725 789
Health Management Associates, Inc.,
Class A 10,201 225
Hercules, Inc. * (g) 4,861 71
Hershey Foods Corp. 10,388 608
Hewlett-Packard Co. (g) 127,400 2,496
Hilton Hotels Corp. 16,229 361
CONTINUED
39
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Home Depot, Inc. 92,065 $ 3,798
Honeywell International, Inc. 36,271 1,305
Hospira, Inc. * 6,593 190
Humana, Inc. * 6,736 231
Huntington Bancshares 9,675 222
IBM Corp. 69,985 6,537
Illinois Tool Works, Inc. 12,476 1,085
IMS Health, Inc. 9,879 231
Ingersoll-Rand Co., Class A 7,025 523
Intel Corp. 266,130 5,976
International Flavors & Fragrances, Inc. 3,977 168
International Game Technology 14,544 455
International Paper Co. 20,515 802
Interpublic Group Cos., Inc. * (g) 17,793 232
Intuit, Inc. * 8,087 315
ITT Industries, Inc. 3,897 332
J.C. Penney Co., Inc. 12,167 520
J.P. Morgan Chase & Co. (g) 149,646 5,586
Jabil Circuit, Inc. * 8,424 199
Janus Capital Group, Inc. 9,956 148
JDS Uniphase Corp. * (g) 60,565 130
Jefferson-Pilot Corp. 5,754 287
Johnson & Johnson 124,736 8,071
Johnson Controls, Inc. 8,030 475
Jones Apparel Group, Inc. 5,277 177
KB Home 1,955 212
Kellogg Co. 17,435 778
Kerr-McGee Corp. 6,377 394
KeyCorp 17,162 574
KeySpan Corp. 6,749 266
Kimberly-Clark Corp. 20,442 1,339
Kinder Morgan, Inc. 5,212 391
King Pharmaceuticals, Inc. * 10,258 108
KLA-Tencor Corp. * (g) 8,291 383
Knight-Ridder, Inc. 3,251 212
Kohl's Corp. * 14,421 678
Kroger Co. * 31,191 533
L-3 Communications Holdings, Inc. 4,859 347
Laboratory Corp. of America Holdings * 5,894 282
Leggett & Platt, Inc. 8,076 230
Lehman Brothers Holdings, Inc. 11,449 1,044
Lexmark International, Inc. * 5,464 455
Limited Brands, Inc. 17,042 404
Lincoln National Corp. 7,431 343
Linear Technology Corp. 12,977 490
Liz Claiborne, Inc. 4,506 189
Lockheed Martin Corp. 18,365 1,062
Loews Corp. 7,829 532
Louisiana-Pacific Corp. 4,675 120
Lowe's Cos., Inc. 32,482 1,851
LSI Logic Corp. * 15,914 97
Lucent Technologies, Inc. * (g) 188,198 614
M&T Bank Corp. (g) 4,940 506
Manor Care, Inc. 3,675 127
Marathon Oil Corp. 14,600 565
Marriott International, Inc. (g) 9,281 586
Marsh & McLennan Cos.,Inc. (g) 21,977 714
Marshall & Ilsley Corp. 9,405 403
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Masco Corp. (g) 18,929 $ 697
Mattel, Inc. 17,482 340
Maxim Integrated Products, Inc. 13,705 535
May Department Stores Co. 12,317 418
Maytag Corp. (g) 3,415 54
MBIA, Inc. 5,683 340
MBNA Corp. 53,903 1,433
McCormick & Co. 5,753 214
McDonald's Corp. 53,013 1,717
McGraw-Hill Cos., Inc. 8,013 725
McKesson, Inc. 12,397 428
MeadWestvaco Corp. 8,505 246
Medco Health Solutions, Inc. * 11,490 489
MedImmune, Inc. * 10,507 249
Medtronic, Inc. (g) 51,021 2,678
Mellon Financial Corp. 17,906 526
Merck & Co., Inc. 92,864 2,605
Mercury Interactive Corp. * 3,570 156
Meredith Corp. 2,119 102
Merrill Lynch & Co., Inc. 39,210 2,355
MetLife, Inc. 31,064 1,235
MGIC Investment Corp. 4,156 266
Micron Technology, Inc. * (g) 25,823 269
Microsoft Corp. 457,287 12,019
Millipore Corp. * 2,055 89
Molex, Inc. 8,013 230
Monsanto Co. 11,273 610
Monster Worldwide, Inc. * 4,979 156
Moody's Corp. 6,242 523
Morgan Stanley 46,341 2,593
Motorola, Inc. 102,346 1,611
Mylan Laboratories, Inc. (g) 11,233 187
Nabors Industries Ltd. * 6,289 317
National City Corp. 28,587 1,016
National Semiconductor Corp. 15,125 256
Navistar International Corp. * (g) 2,988 116
NCR Corp. * 7,956 272
Network Appliance, Inc. * 15,097 481
New York Times Co. (g) 6,179 240
Newell Rubbermaid, Inc. (g) 11,626 250
Newmont Mining Corp. (g) 18,705 778
News Corp., Class A (g) 109,822 1,867
Nextel Communications, Inc., Class A * 46,976 1,348
NICOR, Inc. 1,836 68
Nike, Inc., Class B (g) 11,111 963
NiSource, Inc. 11,120 255
Noble Corp. * 5,640 301
Nordstrom, Inc. 5,904 285
Norfolk Southern Corp. 16,611 580
North Fork Bancorp. 19,751 567
Northern Trust Corp. 9,285 405
Northrop Grumman Corp. 15,536 806
Novell, Inc. * 16,633 96
Novellus Systems, Inc. * 5,965 156
Nucor Corp. (g) 6,694 376
NVIDIA Corp. * (g) 6,910 158
Occidental Petroleum Corp. 16,521 964
Office Depot, Inc. * 13,174 228
CONTINUED
40
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Officemax, Inc. (g) 3,689 $ 109
Omnicom Group, Inc. 7,902 671
Oracle Corp. * 215,792 2,971
PACCAR, Inc. 7,324 518
Pactiv Corp. * 6,262 139
Pall Corp. 5,343 144
Parametric Technology Corp. * (g) 10,962 62
Parker Hannifin Corp. 5,045 329
Paychex, Inc. 15,962 487
People's Energy Corp. 1,616 69
Pepsi Bottling Group, Inc. 10,738 294
PepsiCo, Inc. 70,840 3,804
PerkinElmer, Inc. 5,359 123
Pfizer, Inc. 316,720 7,652
PG&E Corp. * (g) 16,904 592
Phelps Dodge Corp. (g) 3,969 382
Pinnacle West Capital Corp. 3,897 163
Pitney Bowes, Inc. 9,741 436
Plum Creek Timber Co., Inc. 7,745 277
PMC-Sierra, Inc. * 7,625 78
PNC Financial Services Group 11,913 642
Power-One, Inc. * 3,508 26
PPG Industries, Inc. 7,250 499
PPL Corp. 7,967 430
Praxair, Inc. 13,716 592
Principal Financial Group 12,639 513
Procter & Gamble Co. 106,596 5,675
Progress Energy, Inc. 10,411 461
Progressive Corp. 8,442 706
Providian Financial Corp. * 12,200 203
Prudential Financial, Inc. 21,452 1,156
Public Service Enterprise Group, Inc. (g) 10,004 528
Pulte Homes, Inc. 5,358 354
QLogic Corp. * 3,871 148
QUALCOMM, Inc. 69,213 2,577
Quest Diagnostics, Inc. 4,300 410
Qwest Communications International, Inc. * 76,706 322
R.R. Donnelley & Sons Co. 9,220 308
RadioShack Corp. 6,749 224
Raytheon Co. 19,035 712
Reebok International Ltd. 2,504 112
Regions Financial Corp. 19,490 624
Reynolds American, Inc. (g) 6,247 502
Robert Half International, Inc. (g) 7,285 221
Rockwell Automation, Inc. 7,786 441
Rockwell Collins, Inc. 7,476 321
Rohm & Haas Co. (g) 9,478 419
Rowan Cos., Inc. * 4,412 124
Ryder Systems, Inc. (g) 2,723 124
Sabre Group Holdings Corp., Class A 5,742 121
SAFECO Corp. 5,305 246
Safeway, Inc. * 18,869 356
Sanmina-SCI Corp. * 21,722 134
Sara Lee Corp. 32,498 763
SBC Communications, Inc. 139,801 3,322
Schering-Plough Corp. 62,127 1,153
Schlumberger Ltd. 24,911 1,695
Scientific-Atlanta, Inc. 6,410 194
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Sealed Air Corp. * 3,511 $ 180
Sears Roebuck & Co. 8,498 427
Sempra Energy 9,777 364
Sherwin-Williams Co. 6,000 259
Siebel Systems, Inc. * 21,369 186
Sigma-Aldrich Corp. (g) 2,880 181
SLM Corp. 17,952 901
Snap-On, Inc. 2,387 79
Solectron Corp. * (g) 40,459 201
Southern Co. (g) 31,120 1,051
Southwest Airlines Co. 33,385 483
Sovereign Bancorp, Inc. 14,499 330
Sprint Corp. (g) 62,253 1,483
St. Jude Medical, Inc. * 14,939 587
St. Paul Cos. 28,215 1,059
Stanley Works 3,417 163
Staples, Inc. 21,003 688
Starbucks Corp. * 16,773 906
Starwood Hotels & Resorts Worldwide, Inc. 8,786 509
State Street Corp. 13,705 614
Stryker Corp. 16,931 832
Sun Microsystems, Inc. * 140,377 612
SunGard Data Systems, Inc. * 12,180 328
Sunoco, Inc. (g) 3,180 278
SunTrust Banks, Inc. 15,572 1,121
SUPERVALU, Inc. (g) 5,747 182
Symantec Corp. * 26,596 621
Symbol Technologies, Inc. 10,163 186
Synovus Financial Corp. 13,033 354
Sysco Corp. 26,983 943
T. Rowe Price Group, Inc. 5,378 322
Target Corp. 37,651 1,912
Teco Energy, Inc. (g) 8,249 132
Tektronix, Inc. 3,935 113
Tellabs, Inc. * (g) 19,493 139
Temple-Inland, Inc. (g) 2,384 152
Tenet Healthcare Corp. * (g) 19,664 195
Teradyne, Inc. * 8,140 114
Texas Instruments, Inc. 72,055 1,673
Textron, Inc. 5,851 421
The Walt Disney Co. 85,814 2,457
Thermo Electron Corp. * 6,903 207
Tiffany & Co. 6,173 194
Time Warner, Inc. * (g) 192,904 3,472
TJX Companies, Inc. 19,675 493
Torchmark Corp. (g) 4,620 252
Toys 'R' Us, Inc. * 8,951 192
Transocean, Inc. * (g) 13,553 596
Tribune Co. 13,433 537
TXU Corp. (g) 10,013 693
Tyco International Ltd. (g) 84,750 3,063
U.S. Bancorp. (g) 78,494 2,359
U.S.T., Inc. 6,973 353
Union Pacific Corp. 10,939 652
Unisys Corp. * 14,229 112
United Parcel Service, Inc. 47,121 3,519
United States Steel Corp. (g) 4,787 248
United Technologies Corp. 21,349 2,149
CONTINUED
41
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
UnitedHealth Group, Inc. 27,506 $ 2,445
Univision Communications, Inc. * (g) 13,622 372
Unocal Corp. 11,180 532
UNUMProvident Corp. 12,456 214
V.F. Corp. 4,655 247
Valero Energy 10,790 561
VERITAS Software Corp. * 17,432 448
Verizon Communications, Inc. 116,202 4,136
Viacom, Inc. 71,656 2,676
Visteon Corp. 5,137 38
Vulcan Materials Co. 4,291 242
W.W. Grainger, Inc. 3,854 236
Wachovia Corp. 67,280 3,690
Wal-Mart Stores, Inc. (g) 178,240 9,339
Walgreen Co. (g) 42,621 1,816
Washington Mutual, Inc. 36,802 1,484
Waste Management, Inc. 23,705 688
Waters Corp. * 4,972 244
Watson Pharmaceuticals, Inc. * 4,559 136
WellPoint, Inc. * 12,313 1,496
Wells Fargo & Co. 71,223 4,366
Wendy's International, Inc. 4,752 186
Weyerhaeuser Co. 10,102 630
Whirlpool Corp. 2,774 189
Williams Cos., Inc. (g) 23,460 394
Wm. Wrigley Jr. Co. 9,481 667
Worthington Industries, Inc. 29 1
Wyeth 56,267 2,230
Xcel Energy, Inc. (g) 16,872 307
Xerox Corp. * (g) 40,104 637
Xilinx, Inc. (g) 14,653 428
XL Capital Ltd., Class A 5,838 437
XTO Energy, Inc. 10,500 377
Yahoo, Inc. * (g) 58,032 2,043
YUM! Brands, Inc. 12,263 568
Zimmer Holdings, Inc. * 10,339 815
Zions Bancorp. 3,783 257
------------
TOTAL COMMON STOCKS 461,321
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
REAL ESTATE INVESTMENT TRUSTS (0.3%)
Archstone-Smith Trust 8,066 $ 277
Equity Residential Properties Trust 11,860 374
ProLogis 7,680 293
Simon Property Group, Inc. 9,326 553
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 1,497
------------
REPURCHASE AGREEMENTS (0.7%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $3,119,
Collateralized by various U.S. Treasury
securities) $ 3,119 3,119
------------
TOTAL REPURCHASE AGREEMENTS 3,119
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (18.0%)
Pool of various securities for
Fifth Third Funds 83,790 83,790
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 83,790
------------
TOTAL INVESTMENTS (COST $331,880) + - 117.9% 549,727
LIABILITIES IN EXCESS OF OTHER ASSETS - (17.9)% (83,473)
------------
NET ASSETS - 100.0% $ 466,254
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
42
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMERCIAL PAPER (0.5%)
Nestle Capital Corp., 2.28%, 2/10/05 ** (f) $ 770 $ 770
------------
TOTAL COMMERCIAL PAPER 770
------------
COMMON STOCKS (63.7%)
Abbott Laboratories 89,517 4,030
Air Products and Chemicals, Inc. 38,878 2,290
Allstate Corp. 47,472 2,394
Alltel Corp. 30,000 1,651
Bank of America Corp. 99,583 4,618
Check Point Software Technologies Ltd. * 109,912 2,669
Citigroup, Inc. 34,981 1,716
Diebold, Inc. 38,586 2,077
Emerson Electric Corp. 30,425 2,046
Exxon Mobil Corp. 73,070 3,770
FedEx Corp. (g) 21,511 2,058
FPL Group, Inc. (g) 9,693 743
General Electric Corp. 180,998 6,540
Guidant Corp. 41,033 2,974
Honeywell International, Inc. 106,872 3,845
IBM Corp. 53,487 4,997
Johnson & Johnson 60,840 3,937
McDonald's Corp. 129,802 4,204
Medco Health Solutions, Inc. * 63,548 2,705
Microsoft Corp. 190,393 5,004
Noble Corp. * 23,673 1,263
Omnicom Group, Inc. 44,362 3,766
PepsiCo, Inc. 47,281 2,539
Praxair, Inc. 51,025 2,202
Procter & Gamble Co. 31,831 1,694
Prudential Financial, Inc. 19,532 1,053
Schlumberger Ltd. (g) 31,300 2,130
Sherwin-Williams Co. 49,794 2,151
Synovus Financial Corp. 99,310 2,694
Target Corp. 33,310 1,691
United Technologies Corp. 44,547 4,485
Verizon Communications, Inc. 43,695 1,555
Viacom, Inc., Class A (g) 48,253 1,816
Wal-Mart Stores, Inc. 38,119 1,997
Walgreen Co. (g) 76,404 3,256
Weatherford International Ltd. * (g) 31,898 1,731
Wells Fargo & Co. 81,450 4,993
------------
TOTAL COMMON STOCKS 105,284
------------
CORPORATE BONDS (25.8%)
AIG Sunamerica Global Finance, 6.90%,
3/15/32 (g) $ 675 816
Alliant Master Trust, Series 2000-1A,
Class A, 2.89%, 6/20/06 (d)(e) 2,000 2,000
AOL Time Warner, Inc., 7.70%,
5/1/32 125 156
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-10, Class 12A3,
4.74%, 1/25/35 (d) 980 985
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
Bear Stearns Asset Backed Securities,
Inc., Series 2004-HE3, Class 1A1, 2.70%,
5/25/31 (d) $ 1,547 $ 1,547
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 635 677
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14, Class
A4, 5.20%, 1/12/41 (d) 700 728
Chase Manhattan Auto Owner Trust,
1.52%, 5/15/07 907 900
Chase Mortgage Finance Corp., 5.00%,
11/25/33 2,819 2,801
Citigroup, Inc., 6.50%, 2/7/06 500 516
Cox Communications, Inc., 5.50%,
10/1/15 175 175
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 156 160
DaimlerChrysler, 8.50%, 1/18/31 140 179
Devon Energy Corp., 7.95%, 4/15/32 200 262
Equity One ABS, Inc., Series 2004-1,
Class AF4, 4.14%, 4/25/34 (d) 1,000 999
First Franklin Mortgage Loan, 2.47%,
7/25/33 (d) 432 431
Ford Motor Co., 7.45%, 7/16/31 (g) 115 115
France Telecom, 9.25%, 3/1/31 200 277
Gazprom International, 7.20%, 2/1/20 (e) 110 117
General Electric Capital Corp., 6.75%,
3/15/32 175 210
General Motors, 8.38%, 7/15/33 50 50
General Motors Acceptance Corp.,
6.88%, 9/15/11 145 146
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust, 2.36%,
12/25/20 2,247 2,245
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust, 4.34%,
11/1/34 385 385
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust, 2.72%,
2/25/35 (d) 1,000 1,002
Green Tree Financial Corp., 7.60%,
6/15/25 270 290
Green Tree Financial Corp., Series
1998-6, Class A, 6.27%, 6/1/30 291 297
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4, 4.95%,
1/11/35 3,000 3,086
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 700 719
GS Mortgage Securities Corp. II, Series
2004-C1, Class A1, 3.66%, 10/10/28 695 685
GS Mortgage Securities Corp. II, Series
2004-GG2, Class A3, 4.60%, 8/10/38 1,000 1,018
CONTINUED
43
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
IBM Corp., 4.75%, 11/29/12 $ 160 $ 164
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.88%, 2/25/35 510 512
Kinder Morgan Energy Partners, 5.00%,
12/15/13 250 251
Lehman Brothers TRAINS, 7.76%,
11/15/31 (d)(e) 1,995 2,513
Morgan Stanley Capital I, 5.11%,
6/15/40 800 825
Morgan Stanley Capital I, Series
2004-IQ7, Class A2, 5.02%, 6/15/38 700 724
Morgan Stanley Dean Witter Capital I,
4.74%, 11/13/36 700 710
Morgan Stanley Mortgage Loan Trust,
5.00%, 8/25/19 1,115 1,128
Motorola, Inc., 6.50%, 11/15/28 205 224
Navistar Financial Corp. Owner Trust,
1.73%, 2/15/07 2,283 2,267
Navistar Financial Corp. Owner Trust,
2.68%, 4/15/08 (d) 2,000 2,004
Pemex Master Trust, 6.13%, 8/15/08 175 184
Public Services Co. of Colorado, 7.88%,
10/1/12 210 255
Residential Accredit Loans, Inc., 2.80%,
3/25/34 (d) 1,464 1,462
Residential Asset Securities Corp.,
2.77%, 3/25/34 (d) 1,000 1,000
Trans-Canada Pipeline, 5.60%,
3/31/34 195 200
Truck Retail Installment Paper Corp.,
2.82%, 5/15/13 (d)(e) 2,000 2,001
UBS Preferred Funding Trust I, 8.62%,
10/1/49 (d) 250 299
United Mexican States, 4.63%,
10/8/08 580 586
Valero Energy Corp., 7.50%, 4/15/32 200 248
Verizon Florida, Inc., 6.13%, 1/15/13 250 267
Washington Mutual, Series 2004-AR3,
Class A-2, 4.24%, 6/25/34 490 486
YUM! Brands Inc., 7.70%, 7/1/12 250 297
------------
TOTAL CORPORATE BONDS 42,581
------------
U.S. GOVERNMENT AGENCIES (15.5%)
FANNIE MAE (10.6%)
6.50%, 6/1/16 1,514 1,600
5.50%, 1/1/18 359 371
4.50%, 5/1/18 TBA 2,750 2,747
5.50%, 11/1/18 671 693
4.00%, 2/25/21 2,000 2,008
7.50%, 6/1/27 56 60
7.50%, 12/1/27 26 28
7.50%, 12/1/27 301 323
7.00%, 9/1/31 303 321
7.00%, 6/1/32 35 37
5.00%, 6/1/33 TBA 2,000 1,996
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FANNIE MAE, CONTINUED
5.50%, 6/1/33 TBA $ 6,000 $ 6,112
6.00%, 2/1/34 553 571
6.00%, 2/1/34 554 572
7.00%, 9/1/34 92 97
------------
17,536
------------
FREDDIE MAC (3.4%)
4.50%, 1/15/13 60 61
4.50%, 8/15/16 1,585 1,596
7.50%, 7/1/27 15 16
7.50%, 8/1/27 61 65
7.50%, 11/1/27 54 58
7.50%, 12/1/27 94 101
6.50%, 5/1/31 308 323
6.50%, 11/1/31 891 934
7.00%, 1/1/32 13 13
6.25%, 7/15/32 (g) 800 952
7.00%, 8/1/32 57 60
4.50%, 6/1/34 198 193
4.50%, 9/1/34 229 223
6.00%, 10/1/34 953 985
------------
5,580
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (1.5%)
4.50%, 11/16/29 465 463
6.50%, 8/15/31 453 477
6.50%, 4/15/32 250 263
7.00%, 7/20/32 187 198
5.50%, 10/1/33 TBA 1,000 1,027
------------
2,428
------------
TOTAL U.S. GOVERNMENT AGENCIES 25,544
------------
U.S. TREASURY OBLIGATIONS (0.3%)
U.S. TREASURY BONDS (0.3%)
5.45%, 5/15/17 ** 750 431
------------
TOTAL U.S. TREASURY OBLIGATIONS 431
------------
MONEY MARKETS (0.2%)
Dreyfus Cash Management Money
Market Fund 1,331 1
Federated Prime Value Obligations
Money Market Fund 362,233 362
------------
TOTAL MONEY MARKETS 363
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (7.0%)
Pool of various securities for
Fifth Third Funds $ 11,543 11,543
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 11,543
------------
TOTAL INVESTMENTS (COST $170,258) + - 113.0% 186,516
LIABILITIES IN EXCESS OF OTHER ASSET - (13.0)% (21,499)
------------
NET ASSETS - 100.0% $ 165,017
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
44
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (95.7%)
A. M. Castle & Co. * 90,000 $ 1,213
A. T. Cross Co., Class A * 160,000 834
Accelrys, Inc. * 180,000 1,021
ActivCard S.A. * 250,000 2,000
Agilysys, Inc. 100,000 1,686
Ameron International Corp. 60,000 2,171
Analysts International Corp. * 250,000 918
Anaren, Inc. * 80,000 958
Angelica Corp. 80,000 2,292
APAC Customer Services, Inc. * 525,000 809
Apogee Enterprises, Inc. 225,000 3,008
Associated Estates Realty Corp. 110,000 1,074
At Road, Inc. * 175,000 1,022
Ault, Inc. * (k) 323,000 875
Aviall, Inc. * 40,746 1,174
Bassett Furniture Industries, Inc. 227,000 4,278
BEI Technologies, Inc. 75,000 2,114
Benihana, Inc., Class A * 140,000 2,023
BKF Capital Group 100,000 3,778
Blair Corp. 110,000 4,248
Bombay Co., Inc. * 300,000 1,764
Boykin Lodging Co. * 160,000 1,467
Brush Wellman, Inc. * 215,000 3,709
BUCA, Inc. * 230,014 1,582
CalAmp Corp. * 150,000 1,207
Calgon Carbon Corp. 220,000 2,024
Capstone Turbine Corp. * 129,157 223
Carrington Laboratories, Inc. * 130,220 788
Celadon Group, Inc. * 105,000 2,500
Century Business Services, Inc. * 381,183 1,662
Cepheid, Inc. * 100,000 1,025
Chronimed, Inc. * 238,144 1,646
Cobra Electronics Corp. * 315,154 2,323
Compudyne Corp. * 135,000 945
Comstock Resources, Inc. * 200,000 4,692
Concord Camera Corp. * 280,379 552
Covenant Transport, Inc., Class A * 135,000 2,801
Crawford & Co., Class A 12,200 86
Crawford & Co., Class B 147,800 1,068
Cutter & Buck, Inc. 150,801 2,202
Deb Shops, Inc. 100,000 2,740
DHB Industries, Inc. * 125,000 1,899
Digimarc Corp. * 100,000 879
Dril-Quip, Inc. * 145,000 4,168
Electro Rent Corp. * 110,000 1,538
Emerson Radio Corp. * 425,000 1,615
Enesco Group, Inc. * 250,000 1,870
ESS Technology, Inc. * 175,000 1,059
Flow International Corp. * 125,000 374
Frozen Food Express Industries, Inc. * 225,000 2,873
GSI Lumonics, Inc. * 150,000 1,454
Haggar Corp. 115,000 2,529
Hardinge, Inc. 50,000 688
Harken Energy Corp. * 240,000 115
Hartmarx Corp. * 400,000 3,419
Heidrick & Struggles International, Inc. * 100,000 3,305
Hologic, Inc. * 140,000 4,997
ICO, Inc. * 175,000 551
CONTINUED
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
InFocus Corp. * 250,000 $ 1,838
Input/Output, Inc. * 285,000 1,796
Iomega Corp. * 31,000 162
Ionics, Inc. * 20,000 877
Jameson Inns, Inc. * 145,700 262
K2, Inc. * 99,480 1,399
Kaneb Services LLC 1 0
KVH Industries, Inc. * 90,000 911
Lazare Kaplan International, Inc. * 210,600 2,304
LESCO, Inc. * 200,000 2,716
Lightbridge, Inc. * 110,000 656
Lydall, Inc. * 125,000 1,319
MAIR Holdings, Inc. * 154,685 1,422
Material Sciences Corp. * 375,000 5,704
Maxwell Technologies, Inc. * 180,000 1,827
MDI, Inc. * 294,800 192
Meade Instruments Corp. * 400,000 1,316
Meadowbrook Insurance Group * 140,000 752
MEDTOX Scientific, Inc. * 110,000 902
MGP Ingredients, Inc. 80,000 608
MHI Hospitality Corp. * 90,000 873
Michael Baker Corp. * 197,423 3,842
Mobile Mini, Inc. * 100,000 3,421
Monterey Pasta Co. * 425,000 1,526
Movado Group, Inc. 80,000 1,458
Nanometrics, Inc. * 170,000 2,157
National Dentex Corp. * 97,500 1,969
Northwest Pipe Co. * 50,000 1,137
Olympic Steel, Inc. * 85,514 2,010
On Assignment, Inc. * 325,000 1,788
Oregon Steel Mills, Inc. * 130,245 3,112
Orthologic Corp. * 114,400 681
OSI Systems, Inc. * 150,000 2,451
Osteotech, Inc. * 350,000 1,428
Overland Storage, Inc. * 65,000 957
PAM Transportation Services, Inc. * 50,000 910
PAREXEL International Corp. * 20,000 474
Pemstar, Inc. * 501,885 783
Perceptron, Inc. * 80,213 549
Pharmacopeia, Inc. * 90,000 486
Planar Systems, Inc. * 110,000 998
Plato Learning, Inc. * 250,000 1,828
Poore Brothers, Inc. * 40,000 135
Powell Industries, Inc. * 140,000 2,549
Quaker Fabric Corp. 135,000 653
R.G. Barry Corp. * 235,000 834
Register.com, Inc. * 57,219 352
Rewards Network, Inc. * 125,000 613
Rockford Corp. * 325,100 777
Rocky Shoes & Boots, Inc. * 100,000 2,890
RTI International Metals, Inc. * 150,000 3,660
Safeguard Scientifics, Inc. * 525,000 903
Saucony, Inc., Class A 47,300 1,311
Sea Containers, Ltd. 180,000 3,084
SeeBeyond Technology Corp. * 50,000 173
Skechers U.S.A., Inc. * 200,000 2,929
Smith & Wollensky Restaurant
Group, Inc. * 100,000 492
CONTINUED
45
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
SonicWALL, Inc. * 500,000 $ 3,230
Southcoast Financial Corp. * 33,000 825
Standard Register Co. 100,000 1,249
Stein Mart, Inc. * 150,000 2,960
Steinway Musical Instruments, Inc. * 115,000 3,236
Stepan Co. 185,000 4,300
Stewart & Stevenson Services, Inc. 90,000 1,839
Strategic Distribution, Inc. * 139,100 1,947
Stride Rite Corp. 31,500 386
Superior Uniform Group, Inc. 60,000 882
Sykes Enterprises, Inc. * 115,000 823
Symmetricom, Inc. * 649,694 6,321
Systemax, Inc. * 60,000 407
Terra Nitrogen Company, L.P. 40,000 856
Texas Pacific Land Trust 4,500 560
Theragenics Corp. * 350,000 1,396
Top Tankers, Inc. 150,000 2,534
Transport Corp. of America, Inc. * 140,000 1,313
Tweeter Home Entertainment Group, Inc. * 140,000 893
U. S. Concrete, Inc. * 70,000 557
Universal Electronics, Inc. * 135,000 2,290
Veritas DGC, Inc. * 100,000 2,499
Vesta Insurance Group, Inc. 200,000 686
Vignette Corp. * 425,000 557
White Electronic Designs Corp. * 100,000 500
Willbros Group, Inc. * 125,000 2,680
Wolverine Tube, Inc. * 100,000 1,171
Zomax, Inc. * 390,300 1,698
------------
TOTAL COMMON STOCKS 239,586
------------
INVESTMENT COMPANIES (1.5%)
Brantley Capital Corp. 60,000 693
Equus II, Inc. 139,801 1,076
Malaysia Fund, Inc. 20,000 125
MVC Capital 40,000 372
Royce Micro-Cap Trust 101,163 1,442
------------
TOTAL INVESTMENT COMPANIES 3,708
------------
REPURCHASE AGREEMENTS (2.8%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $7,091,
Collateralized by various U.S.
Treasury securities) $ 7,091 7,091
------------
TOTAL REPURCHASE AGREEMENTS 7,091
------------
TOTAL INVESTMENTS (COST $168,916) + - 100.0% 250,385
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% 96
------------
NET ASSETS - 100.0% $ 250,481
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (88.4%)
Accredo Health, Inc. * 136,100 $ 4,053
Agilysys, Inc. 25,000 422
Agrium, Inc. 168,000 2,712
Allegheny Energy, Inc. * 230,600 4,460
American Italian Pasta Co. 98,300 2,664
Anixter International, Inc. 67,400 2,253
Ann Taylor Stores Corp. * 105,200 2,261
Bema Gold Corp. * 630,000 1,783
Big Lots, Inc. * 200,000 2,252
Cal Dive International, Inc. * 30,000 1,311
Cambior, Inc. * 279,100 709
Coeur d'Alene Mines Corp. * 200,000 706
Community Health System, Inc. * 35,000 1,014
Conventry Health Care, Inc. * 39,402 2,242
Corinthian Colleges, Inc. * 125,000 2,404
Credence Systems Corp. * 213,000 1,704
Dot Hill Systems Corp. * 110,000 693
Eldorado Gold Corp. * 246,700 666
Endurance Specialty Holdings, Ltd. 110,000 3,783
Energy Partners, Ltd. * 90,000 1,976
Goody's Family Clothing, Inc. 246,900 2,299
Headwaters, Inc. * 116,900 3,717
Hilb, Rogal & Hamilton Co. 90,200 3,208
Horace Mann Educators Corp. 56,000 1,032
Humana, Inc. * 120,000 4,112
Input/Output, Inc. * 60,000 378
Jack in the Box, Inc. * 25,000 865
Key Energy Services, Inc. * 148,200 1,839
Lubrizol Corp. 65,000 2,342
Magnum Hunter Resources, Inc. * 180,000 2,683
Methode Electronics, Inc. 235,000 2,945
Odyssey Healthcare, Inc. * 172,100 2,002
ONEOK, Inc. 106,300 2,944
Payless ShoeSource, Inc. * 268,000 3,164
PepsiAmericas, Inc. 118,200 2,512
Performance Food Group Co. * 128,300 3,491
Perry Ellis International, Inc. * 84,400 1,781
Photronics, Inc. * 170,000 2,550
Piper Jaffray Cos., Inc. * 61,500 2,434
Platinum Underwriters Holdings, Ltd. 49,700 1,468
Polyone Corp. * 484,000 4,186
PT Indosat TBK ADR 70,000 2,181
Scottish Re Group, Ltd. 128,100 2,955
Service Corp. International * 480,000 3,312
Standard Register Co. 224,000 2,798
Steiner Leisure, Ltd. * 52,100 1,616
Steris Corp. * 121,600 2,884
The Steak n Shake Co. * 121,000 2,385
Tidewater, Inc. 143,000 5,543
Tommy Hilfiger Corp. * 240,000 2,357
Vectren Corp. 100,200 2,767
Veritas DGC, Inc. * 111,000 2,774
Vignette Corp. * 1,200,000 1,572
Visteon Corp. 170,000 1,261
Wheaton River Minerals, Ltd. * 506,000 1,639
------------
TOTAL COMMON STOCKS 128,064
------------
CONTINUED
46
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
INVESTMENT COMPANIES (3.7%)
iShares Russell 2000 Value 28,700 $ 5,322
------------
TOTAL INVESTMENT COMPANIES 5,322
------------
REPURCHASE AGREEMENTS (7.2%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $10,385,
Collateralized by various U.S.
Treasury securities) $ 10,384 10,384
------------
TOTAL REPURCHASE AGREEMENTS 10,384
------------
TOTAL INVESTMENTS (COST $132,410) + - 99.3% 143,770
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.7% 1,024
------------
NET ASSETS - 100.0% $ 144,794
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (89.3%)
3Com Corp. * 315,000 $ 1,156
Alltel Corp. 40,000 2,202
American Electric Power Co. (g) 50,000 1,763
American Express Co. 50,000 2,668
American International Group, Inc. 60,000 3,977
American Power Conversion Corp. 70,000 1,489
Ameritrade Holding Corp. * 125,000 1,616
Anadarko Petroleum Corp. 50,000 3,311
Andrew Corp. * (g) 165,000 2,155
Apache Corp. 69,300 3,771
Applera Corp.- Celera Genomics Group * 225,000 2,986
Applied Materials, Inc. * (g) 250,000 3,975
Archer-Daniels-Midland Co. 115,000 2,783
AT&T Corp. (g) 50,000 960
Becton, Dickinson & Co. 50,000 2,832
Berkshire Hathaway, Inc. * 1,000 2,994
Big Lots, Inc. * 165,000 1,858
BMC Software, Inc. * 60,000 1,010
Bob Evans Farms, Inc. 110,000 2,680
Borg Warner, Inc. 120,000 6,443
Bristol-Myers Squibb Co. 150,000 3,515
Cadbury Schweppes PLC ADR 60,000 2,178
Charles Schwab Corp. 250,000 2,810
ChevronTexaco Corp. 60,000 3,264
CIGNA Corp. 75,000 6,019
Cincinnati Financial Corp. 21,000 927
Coherent, Inc. * 100,000 3,000
Comverse Technology, Inc. * (g) 125,000 2,793
ConAgra, Inc. 160,000 4,720
ConocoPhillips 60,000 5,567
CSX Corp. (g) 50,000 1,999
CVS Corp. 30,000 1,391
Diebold, Inc. 75,000 4,038
Dominion Resources, Inc. 15,000 1,041
Duke Energy Corp. (g) 110,000 2,947
E*TRADE Financial Corp. * 200,000 2,750
E. I. du Pont de Nemours & Co. 25,000 1,189
EMC Corp. * 165,000 2,162
Florida East Coast Industries, Inc. 100,000 4,306
Foot Locker, Inc. 80,000 2,154
Freescale Semiconductor, Inc. * 24,843 434
Furniture Brands International, Inc. 135,000 3,200
Gannett, Inc. 20,000 1,601
General Dynamics Corp. 40,000 4,130
General Electric Corp. 120,000 4,336
Global Industries, Ltd. * 150,000 1,211
Goodyear Tire & Rubber Co. * (g) 162,400 2,507
Harris Corp. 65,000 4,209
Hewlett-Packard Co. 160,000 3,134
Hillenbrand Industries, Inc. 50,000 2,717
Home Depot, Inc. 100,000 4,125
Honda Motor Co., Ltd. 75,000 1,969
Honeywell International, Inc. 150,000 5,396
Horace Mann Educators Corp. 220,000 4,052
Humana, Inc. * 185,000 6,339
IBM Corp. 35,000 3,270
CONTINUED
47
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Industrias Bachoco, S.A. ADR 115,000 $ 1,496
Intel Corp. 150,000 3,368
International Paper Co. 100,000 3,915
Interpublic Group Cos., Inc. * (g) 200,000 2,610
Ionics, Inc. * (g) 100,000 4,386
J.C. Penney Co., Inc. 50,000 2,136
J.P. Morgan Chase & Co. 100,000 3,733
JAKKS Pacific, Inc. * (g) 110,000 2,400
JDS Uniphase Corp. * (g) 225,000 482
Jefferson-Pilot Corp. (g) 70,000 3,493
Kerr-McGee Corp. (g) 60,000 3,705
KeyCorp 100,000 3,342
Kimberly-Clark Corp. 50,000 3,276
King Pharmaceuticals, Inc. * 50,000 526
Kraft Foods, Inc. (g) 100,000 3,398
Liberty Media Corp., Class A * 365,000 3,811
Lubrizol Corp. 85,000 3,063
Lucent Technologies, Inc. * (g) 550,000 1,793
Marathon Oil Corp. 120,000 4,648
Masco Corp. 85,000 3,128
May Department Stores Co. 110,000 3,729
McDonald's Corp. 120,000 3,886
McKesson, Inc. 25,000 862
Merck & Co., Inc. 110,000 3,086
Merrill Lynch & Co., Inc. 15,000 901
Methode Electronics, Inc. 129,400 1,621
Millennium Pharmaceuticals, Inc. * 220,000 2,026
Motorola, Inc. 225,000 3,541
Mylan Laboratories, Inc. (g) 50,000 832
Natuzzi S.p.A. ADR 125,000 1,309
Neenah Paper, Inc. * (g) 1,515 48
Neiman Marcus Group, Inc. 11,200 699
Neiman Marcus Group, Inc., Class A 48,000 3,211
Newell Rubbermaid, Inc. (g) 30,000 646
Novell, Inc. * 275,000 1,587
OmniVision Technologies, Inc. * (g) 75,000 1,217
Orthodontic Centers of America, Inc. * (g) 225,000 1,247
Pall Corp. 160,000 4,309
Payless ShoeSource, Inc. * (g) 225,000 2,657
Pepco Holdings, Inc. (g) 150,000 3,277
Pfizer, Inc. 110,000 2,658
Pier 1 Imports, Inc. (g) 60,000 1,063
Plum Creek Timber Co., Inc. 50,000 1,786
Royal Dutch Petroleum Co. 60,000 3,508
Safeway, Inc. * 140,000 2,639
Saks, Inc. 90,000 1,281
Schering-Plough Corp. 185,000 3,433
Schlumberger Ltd. 70,000 4,762
Scientific-Atlanta, Inc. (g) 45,000 1,364
Snap-On, Inc. 30,000 993
Standard Register Co. 200,000 2,498
Stanley Works 75,000 3,567
Stewart & Stevenson Services, Inc. 175,000 3,577
Sun Microsystems, Inc. * 300,000 1,308
SUPERVALU, Inc. 150,000 4,741
Tecumseh Products Co., Class A 100,000 4,063
The Walt Disney Co. 135,000 3,864
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS, CONTINUED
Thomas & Betts Corp. * 70,000 $ 2,045
Transocean, Inc. * (g) 200,000 8,799
Trizec Properties, Inc. (g) 125,000 2,214
U.S. Bancorp. (g) 80,000 2,404
Union Pacific Corp. 60,000 3,576
Verizon Communications, Inc. 35,000 1,246
Vishay Intertechnology, Inc. * 75,000 980
Whirlpool Corp. (g) 55,000 3,754
Winn-Dixie Stores, Inc. (g) 150,000 542
Wyeth 40,000 1,585
------------
TOTAL COMMON STOCKS 337,679
------------
CORPORATE BOND EQUIVALENTS (c) (0.0%)
Glenborough Realty, $1.94, Series A 7,138 182
------------
TOTAL CORPORATE BOND EQUIVALENTS 182
------------
INVESTMENT COMPANIES (1.6%)
iShares Russell 1000 Value Index (g) 50,000 3,261
iShares Russell 3000 Value Index 10,000 847
John Hancock Bank & Thrift
Opportunity Fund 200,000 2,040
------------
TOTAL INVESTMENT COMPANIES 6,148
------------
REPURCHASE AGREEMENTS (9.5%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $35,793,
Collateralized by various U.S.
Treasury securities) $ 35,791 35,791
------------
TOTAL REPURCHASE AGREEMENTS 35,791
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (15.6%)
Pool of various securities for
Fifth Third Funds 58,971 58,971
------------
TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING 58,971
------------
TOTAL INVESTMENTS (COST $344,292) + - 116.0% 438,771
LIABILITIES IN EXCESS OF OTHER ASSETS - (16.0)% (60,613)
------------
NET ASSETS - 100.0% $ 378,158
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
48
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (95.3%)
Abbott Laboratories 175,296 $ 7,892
Alltel Corp. (g) 228,742 12,590
American Electric Power Co. (g) 383,299 13,512
American International Group, Inc. 210,000 13,921
Anadarko Petroleum Corp. 102,620 6,794
Bank of America Corp. 327,432 15,183
Bristol-Myers Squibb Co. (g) 372,112 8,723
Cadbury Schweppes PLC ADR 413,550 15,012
Caterpillar, Inc. 168,742 15,035
ChevronTexaco Corp. 280,866 15,279
CIT Group, Inc. 321,299 12,971
ConAgra, Inc. 366,857 10,822
ConocoPhillips 205,055 19,027
CVS Corp. 457,543 21,207
Diebold, Inc. (g) 162,000 8,722
Dow Chemical Co. 406,044 20,180
FPL Group, Inc. (g) 172,681 13,234
Gannett, Inc. 229,055 18,334
General Dynamics Corp. 223,617 23,089
General Electric Corp. 369,000 13,332
Genuine Parts Co. 250,991 10,624
Hartford Financial Services Group, Inc. (g) 268,927 18,096
Hewlett-Packard Co. 453,792 8,890
Honda Motor Co., Ltd. 486,538 12,772
Honeywell International, Inc. 585,852 21,079
IBM Corp. 105,871 9,890
Intel Corp. (g) 209,796 4,710
International Paper Co. (g) 357,525 13,997
J.P. Morgan Chase & Co. 548,105 20,460
KeyCorp 548,418 18,328
Lubrizol Corp. 166,000 5,981
Marathon Oil Corp. 353,921 13,707
Masco Corp. (g) 226,550 8,337
May Department Stores Co. 193,552 6,561
McDonald's Corp. 197,488 6,397
Merck & Co., Inc. 233,244 6,542
Merrill Lynch & Co., Inc. 312,239 18,756
MetLife, Inc. 492,000 19,557
NiSource, Inc. 305,424 6,994
Parker Hannifin Corp. 233,175 15,194
Royal Dutch Petroleum Co. 337,427 19,730
RPM International, Inc. 138,544 2,443
Safeway, Inc. * (g) 355,000 6,692
Sherwin-Williams Co. 248,434 10,732
SunGard Data Systems, Inc. * 277,000 7,449
SunTrust Banks, Inc. 231,241 16,654
United Technologies Corp. 80,000 8,054
Valero Energy 81,000 4,214
Verizon Communications, Inc. 402,672 14,331
Weyerhaeuser Co. (g) 190,493 11,887
------------
TOTAL COMMON STOCKS 633,917
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
REPURCHASE AGREEMENTS (5.0%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $33,177,
Collateralized by a U.S. Treasury
security) $ 33,175 $ 33,175
------------
TOTAL REPURCHASE AGREEMENTS 33,175
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (7.8%)
Pool of various securities for
Fifth Third Funds 51,676 51,676
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 51,676
------------
TOTAL INVESTMENTS (COST $592,145) + - 108.1% 718,768
LIABILITIES IN EXCESS OF OTHER ASSETS - (8.1)% (54,078)
------------
NET ASSETS - 100.0% $ 664,690
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
49
LIFEMODEL AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (h) (100.1%)
Fifth Third Disciplined Large Cap
Value Fund 2,155,772 $ 30,332
Fifth Third Institutional Money
Market Fund 3,730,045 3,730
Fifth Third Intermediate Bond Fund 354,062 3,526
Fifth Third International Equity Fund 1,024,394 10,746
Fifth Third Mid Cap Growth Fund * 915,118 13,178
Fifth Third Multi Cap Value Fund 551,999 13,209
Fifth Third Quality Growth Fund * 1,966,126 29,669
Fifth Third Small Cap Growth Fund * 570,758 8,185
Fifth Third Small Cap Value Fund * 414,309 8,282
------------
TOTAL INVESTMENTS IN AFFILIATES 120,857
------------
TOTAL INVESTMENTS (COST $105,702) + - 100.1% 120,857
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)% (65)
------------
NET ASSETS - 100.0% $ 120,792
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL MODERATELY AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (h) (100.0%)
Fifth Third Bond Fund 789,235 $ 8,042
Fifth Third Disciplined Large Cap
Value Fund 3,903,986 54,928
Fifth Third Institutional Money
Market Fund 6,538,204 6,538
Fifth Third Intermediate Bond Fund 2,410,445 24,008
Fifth Third International Equity Fund 1,790,251 18,780
Fifth Third Mid Cap Growth Fund * 1,653,887 23,816
Fifth Third Multi Cap Value Fund 996,678 23,851
Fifth Third Quality Growth Fund * 3,580,395 54,028
Fifth Third Short Term Bond Fund 3,095,102 29,342
Fifth Third Small Cap Growth Fund * 921,521 13,215
Fifth Third Small Cap Value Fund * 668,099 13,355
------------
TOTAL INVESTMENTS IN AFFILIATES 269,903
------------
TOTAL INVESTMENTS (COST $243,173) + - 100.0% 269,903
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (71)
------------
NET ASSETS - 100.0% $ 269,832
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
50
LIFEMODEL MODERATE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (h) (99.9%)
Fifth Third Bond Fund 2,941,111 $ 29,970
Fifth Third Disciplined Large Cap
Value Fund 5,280,798 74,301
Fifth Third Institutional Money
Market Fund 8,435,841 8,436
Fifth Third Intermediate Bond Fund 7,966,964 79,351
Fifth Third International Equity Fund 2,339,912 24,546
Fifth Third Mid Cap Growth Fund * 2,396,558 34,510
Fifth Third Multi Cap Value Fund 1,454,456 34,805
Fifth Third Quality Growth Fund * 4,779,481 72,122
Fifth Third Short Term Bond Fund 10,449,848 99,065
Fifth Third Small Cap Growth Fund * 1,373,028 19,689
Fifth Third Small Cap Value Fund * 990,834 19,807
------------
TOTAL INVESTMENTS IN AFFILIATES 496,602
------------
TOTAL INVESTMENTS (COST $476,987) + - 99.9% 496,602
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 271
------------
NET ASSETS - 100.0% $ 496,873
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL MODERATELY CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (h) (100.0%)
Fifth Third Bond Fund 810,418 $ 8,258
Fifth Third Disciplined Large Cap
Value Fund 914,149 12,862
Fifth Third Institutional Money
Market Fund 2,694,533 2,695
Fifth Third Intermediate Bond Fund 2,252,858 22,438
Fifth Third International Equity Fund 518,000 5,434
Fifth Third Mid Cap Growth Fund * 454,264 6,541
Fifth Third Multi Cap Value Fund 274,007 6,557
Fifth Third Quality Growth Fund * 834,149 12,587
Fifth Third Short Term Bond Fund 2,590,666 24,559
Fifth Third Small Cap Growth Fund * 222,630 3,193
Fifth Third Small Cap Value Fund * 161,612 3,231
------------
TOTAL INVESTMENTS IN AFFILIATES 108,355
------------
TOTAL INVESTMENTS (COST $100,500) + - 100.0% 108,355
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% 38
------------
NET ASSETS - 100.0% $ 108,393
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
51
LIFEMODEL CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
INVESTMENTS IN AFFILIATES (h) (100.1%)
Fifth Third Bond Fund 651,222 $ 6,636
Fifth Third Disciplined Large Cap
Value Fund 300,523 4,228
Fifth Third Institutional Money
Market Fund 95,570 96
Fifth Third Intermediate Bond Fund 1,737,947 17,310
Fifth Third International Equity Fund 114,789 1,204
Fifth Third Mid Cap Growth Fund * 106,038 1,527
Fifth Third Multi Cap Value Fund 63,554 1,521
Fifth Third Quality Growth Fund * 282,016 4,256
Fifth Third Short Term Bond Fund 2,077,939 19,699
Fifth Third Small Cap Growth Fund * 127,071 1,822
Fifth Third Small Cap Value Fund * 91,663 1,832
------------
TOTAL INVESTMENTS IN AFFILIATES 60,131
------------
TOTAL INVESTMENTS (COST $58,581) + - 100.1% 60,131
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)% (37)
------------
NET ASSETS - 100.0% $ 60,094
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS (5.7%)
Abbott Laboratories 30,775 $ 1,386
American Capital Strategies Ltd. 30,800 1,047
Bank of America Corp. 19,900 923
Citigroup, Inc. 16,925 830
First Horizon National Corp. 15,600 664
FPL Group, Inc. 6,825 523
General Electric Corp. 10,735 388
North Fork Bancorp. 10,500 301
Procter & Gamble Co. 11,030 587
Sara Lee Corp. 20,700 486
Southern Co. 14,900 503
Sysco Corp. 19,025 665
Verizon Communications, Inc. 6,950 247
Wachovia Corp. 9,475 520
Wells Fargo & Co. 15,945 978
------------
TOTAL COMMON STOCKS 10,048
------------
CORPORATE BONDS (23.5%)
Amvescap PLC, 5.38%, 2/27/13 $ 500 508
Bankers Trust New York, 7.25%,
10/15/11 1,000 1,146
Bear, Stearns Co., Inc., 4.65%, 7/2/18 1,000 949
Bear, Stearns Co., Inc., Series
2003-AC7, Class A2, 5.25%, 1/25/34 1,273 1,283
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 500 490
Comcast Cable, 7.13%, 6/15/13 500 578
Core Invest Grade Trust, 4.73%,
11/30/07 500 509
Countrywide Home Loans, 4.59%,
10/25/33 1,678 1,651
Countrywide Home Loans, 5.13%,
4/20/35 (d) 884 888
Cullen/Frost Cap Trust I, 3.34%, 3/1/34 (d) 1,000 1,031
CVS Corp., 7.77%, 1/10/12 (e) 888 997
Deutsche Mortgage Securities, Inc.,
Series 2004-2, Class A3, 3.78%,
1/25/34 1,000 994
Developers Diversified Realty, 3.88%,
1/30/09 1,000 982
Emigrant Cap Trust I, 4.43%, 12/10/33 (d)(e) 1,000 992
First Tennessee Cap II, 6.30%,
4/15/34 1,500 1,537
Ford Motor Credit Co., 7.00%,
10/1/13 1,500 1,580
General Motors Acceptance Corp.,
6.88%, 9/15/11 500 502
Goldman Sachs Group, Inc., 4.75%,
7/15/13 1,000 997
Goldman Sachs Group, Inc., 5.25%,
10/15/13 1,000 1,030
HBOS PLC, 5.38%, 11/1/13 (d)(e) 2,000 2,073
Hutchison Whampoa International, Ltd.,
6.50%, 2/13/13 (e) 1,000 1,087
HVB Funding Trust I, 8.74%, 6/30/31 (e) 1,000 1,302
CONTINUED
52
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
International Lease Finance Corp.,
4.38%, 11/1/09 $ 1,000 $ 1,000
Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,650
Lehman Brothers TRAINS, 6.50%,
8/15/08 (d)(e) 492 514
Marsh & McLennan Cos., Inc., 5.88%,
8/1/33 500 473
Merrill Lynch Mortgage Investors, Inc.,
Series 2003-A1, Class 2A, 4.53%,
12/25/32 343 347
Motorola, Inc., 6.50%, 11/15/28 500 546
Pacific Gas & Electric, 4.20%, 3/1/11 1,000 988
Public Service Oklahoma, 4.85%,
9/15/10 500 510
Radian Group, Inc., 5.63%, 2/15/13 500 521
RBS Cap Trust B, 6.80%, 3/31/08 500 522
SLM Corp., 4.12%, 4/1/09 (d) 1,000 988
SLM Corp., 4.47%, 2/1/10 (d) 1,000 992
SLM Corp., 5.39%, 11/21/13 (d) 1,000 1,017
Sprint Capital Corp, 8.38%, 3/15/12 1,500 1,817
TCI Communications, Inc., 7.88%,
8/1/13 1,100 1,326
Union Planters Corp., 4.38%, 12/1/10 500 501
Washington Mutual Bank, 4.82%,
10/25/32 164 164
Washington Mutual Bank, Series
2003-AR10, Class A4, 4.08%, 10/25/33 1,500 1,484
Wells Fargo Mortgage Backed Securities
Trust, 5.00%, 11/25/34 1,000 955
Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,832
------------
TOTAL CORPORATE BONDS 41,253
------------
FOREIGN BONDS (1.2%)
Korea Development Bank, 3.88%,
3/2/09 1,000 984
Russian Federation, 8.25%, 3/31/10 (e) 1,000 1,100
------------
TOTAL FOREIGN BONDS 2,084
------------
CORPORATE BOND EQUIVALENTS (c) (44.7%)
AAG Holding Co., Inc., $1.17 20,000 508
Abbey National PLC, Series B $1.84 24,900 678
Abbey National PLC, Series C $1.84 70,600 1,938
ABN AMRO Cap Fund Trust V,
$1.48 60,000 1,483
AMBAC Financial Group, Inc., $1.49 54,100 1,367
AMBAC Financial Group, Inc., $1.75 62,895 1,660
BAC Capital Trust I, $1.75 64,500 1,698
BAC Capital Trust VI, $1.75 48,600 1,304
Bank One Capital V, $2.00 76,300 1,988
BBC Capital Trust II, $2.13 31,000 830
Bear Stearns Capital Trust III, $1.95 58,900 1,551
Citigoup Capital VII, $1.78 124,925 3,308
Cleveland Electric Financial Trust I,
$2.25 10,000 271
ConAgra Capital, $1.25 54,900 1,371
CONTINUED
SHARES VALUE
------------ ------------
CORPORATE BOND EQUIVALENTS (c), CONTINUED
Consolidated Edison, $1.81 50,700 $ 1,367
Corp-Backed Trust Certs (CBTCS), $1.53 60,000 1,515
Corp-Backed Trust Certs (CBTCS), $1.56 33,500 857
Corp-Backed Trust Certs (CBTCS), $1.80 15,800 408
Corp-Backed Trust Certs (CBTCS), $1.97 2,200 58
Corp-Backed Trust Certs (CBTCS), $2.06 7,800 205
Corp-Backed Trust Certs (CBTCS), $2.20 1,800 47
Corts Countrywide Capital II, $2.00 10,000 267
Corts Trust For Disney, $1.72 40,000 1,074
Corts Trust II Safeco Capital I, $2.18 10,000 263
Corts-First Union Capital II, $1.88 17,700 458
Corts-Sherwin Williams, $1.81 57,600 1,492
Corts-TR Verizon Global, $3.13 54,500 1,466
Developers Diversified Realty, $2.15 48,300 1,301
Dominion CNG Capital Trust I, $1.95 39,800 1,052
Duke Realty Corp. $1.67 30,000 752
Duke Realty Corp., $2.11 40,800 1,072
Duquesne Light Co., $1.68 24,000 634
Energy East Capital, $2.06 5,000 132
Entergy Arkansas, Inc., $1.50 80,600 2,053
Entergy Mississippi, Inc., $1.50 39,000 1,009
Equity Residential Properties, $2.28,
Series B 19,900 518
Federal Realty Investment Trust, $2.13 43,300 1,159
Financial Security Assurance Holdings,
$1.56 90,750 2,335
Fleet Capital Trust VI, $2.20 46,000 1,185
Fleet Capital Trust VII, $1.80 29,200 771
Ford Capital Trust Series II, $3.25 10,000 500
General Electric Capital Corp., $1.53 19,000 499
General Electric Capital Corp., $1.66 59,000 1,581
Glenborough Realty, $1.94, Series A 20,661 526
Harris Preferred Capital, Series A, $1.84 31,800 813
Household Capital Trust V, $2.50 17,000 439
HRPT Properties Trust, $2.47 26,100 692
HRPT Properties Trust, Series B, $2.19 22,900 623
HSBC Finance Corp. $1.72 32,800 875
Huntington Preferred Cap, Inc., $1.97 15,507 442
ING Group NV, $1.80 41,200 1,118
Kimco Reality Preferred, $1.66 39,994 1,035
Laclede Capital Trust I, $1.93 10,000 276
Maytag Corp., $1.97 19,200 494
MBNA Corp., $1.88 28,400 740
MBNA Corp., $2.03 37,800 1,013
Merrill Lynch Preferred Capital, $0.99 20,000 514
ML Capital Trust III, $1.75 49,800 1,344
Morgan Stanley Capital II, $1.81 81,525 2,138
National Rural Utility CFC, $1.91 10,000 265
Nordstrom (CBTCS), $1.91 10,000 265
Preferred Plus Trust NAI-1, $2.01 4,400 117
PS Business Parks, Inc., $2.38 10,000 268
Public Credit & Repack Securities, $1.78 15,600 406
Public Storage, Inc., Series A, $2.45 15,000 434
Public Storage, Inc., Series S, $1.97 10,000 266
Puget Sound Energy Capital Trust, $2.10 13,700 364
Regions Financial Trust I, $2.00 66,500 1,741
Rouchester Gas & Electric, $1.66 42,800 1,137
CONTINUED
53
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BOND EQUIVALENTS (c), CONTINUED
Saturns JPM, $1.78 12,000 $ 314
Saturns, Series S, $1.81 10,000 257
Sears Roebuck & Co. Acceptance, $1.75 41,600 1,085
Sempra Energy Capital Trust I, $2.23 29,900 755
Southern Co. Capital Trust VI, $1.78 39,600 1,063
Stilwell Financial, $1.97 36,800 968
Suntrust Capital V, $1.76 46,600 1,232
Torchmark Capital Trust I, $1.94 58,819 1,575
USB Capital V, $1.81 14,100 375
Virginia Power Capital Trust, 1.84 26,800 719
Wachovia Funding, $1.81, Series A 79,000 2,248
Wells Fargo Capital Trust V, $1.75 18,600 501
Wells Fargo Capital Trust VI, $1.74 74,550 1,980
Wells Fargo Capital Trust VII, $1.46 33,500 840
------------
TOTAL CORPORATE BOND EQUIVALENTS 78,242
------------
PREFERRED STOCKS(c) (3.4%)
Fannie Mae, $1.77 8,800 350
Fannie Mae, $2.91 8,500 425
Freddie Mac, $2.50 20,000 890
Freddie Mac, $2.55 10,000 454
Freddie Mac, $2.85 25,500 1,281
Lehman Brothers, $1.92 50,000 1,275
Source Capital, $2.40 35,600 1,246
------------
TOTAL PREFERRED STOCKS 5,921
------------
REAL ESTATE INVESTMENT TRUSTS (i) (8.6%)
AMB Property Corp. 10,950 408
Developers Diversified Realty, Corp. 17,000 676
Duke-Weeks Realty Corp. 25,100 781
Equity Residential Properties Trust 25,650 809
Health Care Property Investors, Inc. 38,550 1,001
Kimco Realty Corp. 37,700 1,997
Mills Corp. 16,700 934
ProLogis 23,100 881
Simon Property Group, Inc. 35,604 2,111
Thornburg Mortgage, Inc. 47,300 1,317
Vornado Realty Trust 30,800 2,129
Weingarten Realty Investors 57,175 2,044
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 15,088
------------
U.S. TREASURY NOTES (1.2%)
7.00%, 7/15/06 $ 2,000 2,109
------------
TOTAL U.S. TREASURY NOTES 2,109
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES (2.4%)
FANNIE MAE (1.1%)
5.13%, 1/2/14 $ 1,000 $ 1,030
4.28%, 7/1/18 966 967
------------
1,997
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (1.3%)
5.49%, 8/16/27 1,150 1,214
4.89%, 7/16/34 1,000 1,007
------------
2,221
------------
TOTAL U.S. GOVERNMENT AGENCIES 4,218
------------
INVESTMENT COMPANIES (8.3%)
1838 Bond Debenture Trading 127,000 2,446
American Income Fund, Inc. 135,400 1,152
Blackrock Income Trust 108,600 812
Blackrock North American
Government Income 225,000 2,503
Eaton Vance Tax-Advantaged Dividend
Income Fund 23,600 504
ING Prime Rate Trust 160,400 1,232
MFS Government Markets Income Trust 217,400 1,463
MFS Intermediate Income Trust 49,000 323
Pioneer Interest Shares 90,700 1,063
Templeton Global Income Fund, Inc. 61,374 587
Van Kampen Bond Fund 64,800 1,157
Van Kampen Senior Income Trust 152,000 1,306
------------
TOTAL INVESTMENT COMPANIES 14,548
------------
REPURCHASE AGREEMENTS (2.0%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $3,490,
Collateralized by various U.S. Treasury
securities) $ 3,490 3,490
------------
TOTAL REPURCHASE AGREEMENTS 3,490
------------
TOTAL INVESTMENTS (COST $169,064) + - 101.0% 177,001
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.0)% (1,715)
------------
NET ASSETS - 100.0% $ 175,286
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
54
SELECT STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMON STOCKS (97.9%)
Agilent Technologies, Inc. * 26,000 $ 575
AK Steel Holding Corp. * (g) 45,000 653
Analog Devices, Inc. 10,000 359
Avaya, Inc. * 30,000 431
Best Buy Co., Inc. 18,000 968
Broadcom Corp., Class A * 18,000 572
Cintas Corp. 10,000 435
Cisco Systems, Inc. * 30,000 541
EMC Corp. * 85,000 1,114
Goldman Sachs Group, Inc. 8,000 862
Henry Schein, Inc. * 5,000 340
Illinois Tool Works, Inc. 6,000 522
International Game Technology 20,000 626
J.P. Morgan Chase & Co. 17,000 635
L-3 Communications Holdings, Inc. 12,000 857
Lehman Brothers Holdings, Inc. 4,000 365
Manpower, Inc. 20,000 973
Maxim Integrated Products, Inc. 9,000 351
Nordstrom, Inc. 15,000 724
Phelps Dodge Corp. 6,000 578
Rockwell Automation, Inc. 10,000 567
Teva Pharmaceutical Industries Ltd., ADR 28,000 804
Texas Instruments, Inc. 21,000 487
Varian Medical Systems, Inc. * 20,000 755
Xilinx, Inc. 5,000 146
------------
TOTAL COMMON STOCKS 15,240
------------
REPURCHASE AGREEMENTS (2.0%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $316,
Collateralized by a U.S. Treasury
security) $ 316 316
------------
TOTAL REPURCHASE AGREEMENTS 316
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (2.2%)
Pool of various securities for
Fifth Third Funds 346 346
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 346
------------
TOTAL INVESTMENTS (COST $14,479) + - 102.1% 15,902
LIABILITIES IN EXCESS OF OTHER ASSETS - (2.1)% (331)
------------
NET ASSETS - 100.0% $ 15,571
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (99.4%)
Affymetrix, Inc. * (g) 30,000 $ 1,235
Agilent Technologies, Inc. * 60,000 1,327
Alamosa Holdings, Inc. * (g) 50,000 640
Altera Corp. * (g) 30,000 576
Apple Computer, Inc. * 14,250 1,096
ARM Holdings PLC ADR 200,000 1,102
AudioCodes Ltd. * (g) 60,000 916
Autodesk, Inc. 35,000 1,028
Avaya, Inc. * 100,000 1,435
Avid Technology, Inc. * 15,000 946
Avocent Corp. * 20,000 730
BEA Systems, Inc. * 87,500 746
Broadcom Corp., Class A * 48,000 1,528
Celgene Corp. * 30,000 820
CheckFree Corp. * (g) 32,500 1,268
Comverse Technology, Inc. * (g) 55,000 1,229
Convergys Corp. * 57,500 822
EMC Corp. * 110,000 1,441
Equinix, Inc. * 20,000 839
Genzyme Corp. * 15,000 873
Internet Security Systems, Inc. * 45,000 1,006
Invitrogen Corp * 15,250 1,048
Jabil Circuit, Inc. * 57,500 1,355
Juniper Networks, Inc. * (g) 55,000 1,382
Lam Research Corp. * (g) 46,000 1,231
Maxim Integrated Products, Inc. 23,750 926
Mercury Interactive Corp. * (g) 32,250 1,411
Microsemi Corp. * 45,000 694
Millicom International Cellular S.A. * (g) 37,500 802
Monster Worldwide, Inc. * (g) 62,250 1,948
Motorola, Inc. 65,000 1,023
Network Appliance, Inc. * 40,000 1,274
NMS Communications Corp. * 75,000 473
NVIDIA Corp. * 42,500 974
Openwave Systems, Inc. * (g) 50,000 681
PLX Technology, Inc. * 60,000 552
RealNetworks, Inc. * 105,000 637
Sabre Group Holdings Corp., Class A 55,000 1,161
SafeNet, Inc. * 15,000 509
Salesforce.com, Inc. * 70,000 959
Sapient Corp. * 117,060 922
Seagate Technology 60,000 1,015
Semtech Corp. * (g) 3,000 55
SERENA Software, Inc. * 13,500 290
Synopsys, Inc. * 44,250 752
Texas Instruments, Inc. 55,000 1,277
Tibco Software, Inc. * (g) 115,000 1,264
VeriSign, Inc. * 5,000 129
Western Digital Corp. * 62,500 673
Xilinx, Inc. 20,000 584
------------
TOTAL COMMON STOCKS 47,604
------------
CONTINUED
55
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
REPURCHASE AGREEMENTS (1.1%)
UBS Investment Bank, 2.45%, 2/1/05
(Proceeds at maturity, $548,
Collateralized by a U.S. Treasury
security) $ 548 $ 548
------------
TOTAL REPURCHASE AGREEMENTS 548
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (23.4%)
Pool of various securities for
Fifth Third Funds 11,189 11,189
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 11,189
------------
TOTAL INVESTMENTS (COST $58,351) + - 123.9% 59,341
LIABILITIES IN EXCESS OF OTHER ASSETS - (23.9)% (11,434)
------------
NET ASSETS - 100.0% $ 47,907
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
COMMON STOCKS (0.1%)
UNITED STATES (0.1%)
Synthes, Inc. * 2,120 $ 243
------------
TOTAL COMMON STOCKS 243
------------
FOREIGN STOCKS (91.0%)
AUSTRALIA (2.7%)
Amcor, Ltd. 40,053 220
AMP, Ltd. 30,798 182
Ansell, Ltd. 903 6
Australia & New Zealand Banking
Group, Ltd. 13,652 218
Australian Gas & Light Co. 4,391 47
BHP Steel, Ltd. 33,413 240
BHP, Ltd. 171,508 2,163
Boral, Ltd. 26,760 149
Brambles Industries, Ltd. (g) 25,015 142
Centro Properties Group 7,225 30
CFS Gandel Retail Trust 16,044 20
Coca-Cola Amatil, Ltd. 18,206 111
Coles Myer, Ltd. 10,143 73
Commonwealth Bank of Australia 28,589 743
CSL, Ltd. 3,077 74
CSR, Ltd. 41,804 81
Foster's Group, Ltd. 45,043 182
General Property Trust 18,694 56
Insurance Australia Group 42,701 215
Investa Property Group 12,111 20
James Hardie Industries NV 20,929 112
John Fairfax Holdings, Ltd. 9,472 32
Leighton Holdings, Ltd. 2,372 22
Lend Lease Corp., Ltd. 3,916 41
Macquarie Bank, Ltd. 5,278 200
Macquarie Infrastructure Group 66,938 198
Mayne Nickless, Ltd. 8,502 30
Mirvac Group 7,782 28
National Australia Bank, Ltd. 37,214 855
Newcrest Mining, Ltd. 14,989 198
Onesteel, Ltd. 25,317 54
Orica, Ltd. 12,322 183
Origin Energy, Ltd. 2,961 16
Paperlinx, Ltd. 20,353 72
Patrick Corp., Ltd. 10,538 51
QBE Insurance Group, Ltd. 15,880 188
Rinker Group, Ltd. 43,117 374
Rio Tinto, Ltd. (g) 14,207 472
Santos, Ltd. 5,901 42
Sonic Healthcare, Ltd. 1,295 11
Southcorp Holdings, Ltd. * 6,725 23
Stockland Trust Group 13,213 60
Suncorp Metway, Ltd. 5,206 75
TABCORP Holdings, Ltd. 10,214 140
Telstra Corp., Ltd. 50,555 193
Transurban Group 5,359 34
Westfarmers, Ltd. 8,613 262
Westfield Group 19,881 262
Westpac 20,907 311
CONTINUED
56
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
AUSTRALIA, CONTINUED
WMC Resources, Ltd. 52,804 $ 292
WMC, Ltd. 52,903 250
Woodside Petroleum, Ltd. 12,056 193
Woolworths, Ltd. 26,428 299
------------
10,545
------------
AUSTRIA (0.9%)
Bank Austria Creditanstalt 4,208 365
Boehler-Uddeholm AG 170 22
EFG Eurobank Ergasias 6,029 194
Erste Bank Der Oesterreichischen
Sparkassen AG 13,922 687
Flughafen Wein AG 1,211 87
Immofinanz Immobilien Anlagen * 27,200 252
Mayr-Melnhof Karton AG 500 82
Oesterreichische Elektrizitaetswirtschafts AG 672 146
OMV AG 1,593 496
RHI AG * 1,954 58
Telekom Austria AG 31,750 596
VA Technologie AG * 1,298 109
Voest-Alpine Stahl AG 569 43
Wienerberger Baust 7,140 329
------------
3,466
------------
BELGIUM (1.0%)
Agfa Gevaert NV 8,768 298
Bekaert NV 325 26
Belgacom SA * 2,171 90
Delhaize Group 2,071 152
Dexia (g) 34,518 771
Fortis 49,236 1,328
Groupe Bruxelles Lambert SA 2,154 179
Interbrew 5,054 187
KBC Bancassurance Holding SA 4,820 372
Solvay SA 2,454 263
UCB SA 2,939 144
Umicore 90 8
------------
3,818
------------
BERMUDA (0.1%)
Cheung Kong Infrastructure Holdings, Ltd. 15,000 45
Esprit Holdings, Ltd. 22,500 130
Johnson Electric Holdings, Ltd. 38,000 36
Li & Fung, Ltd. 44,000 72
SCMP Group, Ltd. 10,000 5
Shagri-La Asia, Ltd. 27,021 37
Yue Yuen Industrial Holdings, Ltd. 13,000 34
------------
359
------------
BRAZIL (0.5%)
Aracruz Celulose SA, B Shares 25,000 88
Banco Itau Holding Financeira SA 2,385 356
Centrais Eletricas Brasileiras SA, B Shares 6,652,000 84
Companhia Brasileira de Distribuicao
Grupo Pao de Acucar ADR 800 18
Companhia Siderurgica Nacional SA 6,000 120
Companhia Vale do Rio Doce, A Shares 32,000 809
Souza Cruz SA 5,000 59
Tele Norte Leste Participacoes SA 15,202 220
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
BRAZIL, CONTINUED
Unibanco - Uniao de Bancos Brasileiros
SA GDR 4,400 $ 135
Usinas Siderurgicas de Minas Gerais SA,
A Shares 6,000 123
------------
2,012
------------
CHINA (0.7%)
Aluminum Corp of China, Ltd. 262,000 144
Beijing Capital International Airport
Co., Ltd. 108,000 46
BYD Co., Ltd., H Shares 12,000 37
China Life Insurance Co., Ltd., H Shares * 593,000 395
China Oilfield Services, Ltd., H Shares 122,000 41
China Petroleum & Chemical Corp. 1,336,000 531
China Shipping Container Lines Co., Ltd. * 170,000 68
China Shipping Development Co., Ltd. 104,000 88
China Telecom Corp., Ltd. 1,106,000 411
Jiangsu Expressway Co., Ltd. 98,000 44
Jiangxi Copper Co., Ltd. 92,000 49
Maanshan Iron & Steel Co., Ltd., H Shares 138,000 50
PICC Property & Casualty Co., Ltd.,
H Shares * 276,000 91
Ping An Insurance Co., Ltd. * 209,000 347
Shandong International Power
Development Co., Ltd. 114,000 34
Sinopec Zhenhai Refining & Chemical
Co., Ltd., H Shares 58,000 59
Sinotrans, Ltd. 142,000 46
Weiqiao Textile Co., Ltd., H Shares 27,500 42
Yanzhou Coal Mining Co., Ltd. 98,000 139
Zhejiang Expressway Co., Ltd. 114,000 81
------------
2,743
------------
DENMARK (0.4%)
A P Moller - Maersk AS 10 82
Danisco AS 900 53
Danske Bank 21,687 632
GN Store Nord AS 12,700 137
ISS AS 1,100 63
Novo Nordisk AS 8,580 457
Novozymes AS 1,350 65
TDC AS 3,200 133
Vestas Wind Systems AS * 3,850 46
William Demant Holdings AS * 1,000 49
------------
1,717
------------
FINLAND (1.0%)
Fortum Oyj 7,649 137
Kesko Oyj, B Shares 3,423 88
Kone Corp. 1,760 137
Metso Oyj, B Shares 7,335 111
Nokia Oyj 141,869 2,171
Outokumpo Oyj 7,841 139
Sampo Insurance Co. 6,221 82
Stora Enso Oyj 24,992 359
TietoEnator Oyj 4,643 136
UPM-Kym'mene Oyj 22,623 478
Uponor Oyj 1,070 20
Wartsila Corp. Oyj, B Shares 2,779 63
------------
3,921
------------
CONTINUED
57
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
FRANCE (7.9%)
Accor SA 12,660 $ 553
Alcatel * 37,634 540
Alstom * 10,748 10
Arcelor 10,610 235
Atos Origin SA * 797 51
AXA SA (g) 58,945 1,430
Banque Nationale de Paris 40,366 2,911
BIC 1,284 70
Bouygues 17,248 675
Business Objects SA * 2,186 54
Cap Gemini * 4,197 136
Carrefour SA 24,592 1,267
Casino Guichard-Perrachon 2,229 182
CNP Assurances 1,512 108
Compagnie de Saint Gobain 16,524 1,020
Compagnie Generale des Etablissements
Michelin 3,376 218
Credit Agricole SA 16,947 504
Dassault Systems SA 2,015 94
Essilor International 2,206 157
Euronext NV 2,344 75
European Aeronautic Defence and Space Co. 7,235 221
France Telecom SA (g) 53,371 1,673
Groupe Danone 10,026 934
Imerys SA 1,680 140
L'Air Liquide SA 5,353 920
L'Oreal SA 8,732 653
Lafarge SA 8,085 833
Lagardere Group SCA 8,650 652
LVMH Moet-Hennessy Louis Vuitton 9,036 627
Peugeot SA 5,320 331
Pinault Printemps 2,337 246
Publicis Groupe 4,696 148
Renault SA 5,600 457
Sagem SA 3,209 65
Sanofi-Synthelabo 30,578 2,280
Schneider Electric SA 7,753 592
Societe Generale-A 15,875 1,580
Societe Television Francaise 1 4,417 144
Sodexho SA 3,426 102
STMicroelectronics NV 9,734 162
Suez SA (g) 20,544 552
Technip-Coflexip SA 360 60
Thales SA 2,428 111
Thomson 12,428 315
Total SA 24,406 5,231
Veolia Environnement 7,851 280
Vinci 3,209 460
Vivendi Universal * (g) 35,839 1,133
Zodiac SA 1,686 76
------------
31,268
------------
GERMANY (5.7%)
Adidas-Salomon AG 2,432 363
Allianz AG 8,902 1,058
Altana AG 2,375 139
BASF AG 20,333 1,388
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GERMANY, CONTINUED
Bayer AG 25,063 $ 799
Bayerische Hypo- und Vereinsbank AG * 15,845 347
Beiersdorf AG 2,501 284
Commerzbank AG * 21,217 451
Continental AG 3,078 213
DaimlerChrysler AG 24,878 1,131
Deutsche Bank AG 25,078 2,127
Deutsche Boerse AG 6,255 388
Deutsche Lufthansa AG * 7,771 108
Deutsche Post AG 17,941 415
Deutsche Telekom AG * 113,378 2,450
Douglas Holdings AG 1,137 40
Epcos AG * 1,756 22
Fresenius Medical Care AG (g) 3,066 248
Gehe AG 3,035 234
Heidelberger Zement AG 1,243 83
Henkel KGaA 2,849 255
Hypo Real Estate Holding AG * 6,864 271
Infineon Technologies AG * 10,539 98
Karstadt AG 766 7
Lanxess * 2,506 48
Linde AG 4,510 286
MAN AG 4,408 182
Merck KGAA 1,859 123
Metro AG 5,322 278
Muenchener Rueckver AG 1,769 202
Porsche AG 287 187
ProSiebenSat. 1 Media AG 2,443 45
Puma AG Rudolf Dassler Sport 380 93
RWE AG 14,431 833
SAP AG 6,866 1,063
Schering AG 5,552 375
Siemens AG 32,346 2,571
Thyssen Krupp AG 6,806 145
TUI AG 3,560 83
VEBA AG 32,012 2,867
Volkswagen AG 6,994 336
------------
22,636
------------
GREAT BRITAIN (20.5%)
Aegis Group PLC 48,216 95
AMEC PLC 10,049 59
ARM Holdings PLC 35,206 65
AstraZeneca PLC 56,372 2,111
Astro All Asia Networks PLC * 73,100 106
Aviva PLC 87,133 1,041
BAE Systems PLC 129,356 598
Balfour Beatty 12,655 78
Barclays PLC 294,324 3,223
Barratt Developments PLC 10,231 117
BG Group PLC 144,563 984
BHP Billiton PLC 103,623 1,281
BOC Group PLC 18,308 338
Boots Group PLC 25,903 325
BP Amoco PLC 857,726 8,443
BPB PLC 9,762 95
Brambles Industries PLC 50,170 259
British Airways PLC * 22,005 110
CONTINUED
58
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
British American Tobacco PLC 71,919 $ 1,245
British Sky Broadcasting Group PLC 61,371 653
BT Group PLC 447,957 1,753
Bunzl PLC 31,911 266
Cable & Wireless PLC 64,875 150
Cadbury Schweppes PLC 84,656 758
Capita Group PLC 46,724 315
Carnival PLC 5,681 340
Centrica PLC 136,147 598
Cobham PLC 3,532 89
Compass Group PLC 74,183 336
Daily Mail & General Trust 14,031 188
Davis Service Group 14,163 115
De La Rue PLC 13,711 97
Diageo PLC 162,550 2,213
Dixons Group PLC 79,270 236
Electrocomponents PLC 17,490 99
EMAP PLC 11,913 191
EMI Group PLC 35,202 175
Enterprise Inns PLC 11,763 165
Exel PLC 7,121 107
FKI PLC 16,026 38
Friends Provident PLC 65,779 198
George Wimpey PLC 11,487 91
GKN PLC 16,595 76
Glaxosmithkline PLC 199,056 4,402
Great Universal Stores PLC 41,111 746
Group 4 Securicor PLC * 80,167 202
Hanson PLC 21,056 196
Hays PLC 120,541 282
HBOS PLC 133,964 2,134
Hilton Group PLC 53,588 298
HSBC Holdings PLC 512,387 8,472
IMI PLC 15,569 119
Imperial Chemical Industries PLC 52,419 233
Imperial Tobacco Group PLC 20,883 547
InterContinental Hotels Group PLC 23,055 290
International Power PLC * 35,340 112
Invensys PLC * 178,148 65
ITV PLC 187,565 412
J Sainsbury PLC 46,000 245
Johnson Matthey PLC 9,928 187
Kelda Group PLC 11,438 130
Kesa Electricals PLC 22,201 133
Kidde PLC 29,649 92
Kingfisher PLC 103,013 591
Legal & General Group PLC 213,942 463
Lloyds TSB Group PLC 217,081 2,027
Logica PLC 29,333 97
Marks & Spencer PLC 91,778 623
Misys PLC 22,506 91
Mitchells & Butlers PLC 24,946 153
National Grid Transco PLC 136,941 1,330
Next PLC 11,971 354
Novar PLC 11,168 40
Pearson PLC 36,760 426
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
Peninsular & Oriental Steam Navigation
Co. PLC 15,725 $ 91
Persimmon PLC 2,731 37
Pilkington PLC 53,999 121
Prudential Corp. PLC 58,015 502
Rank Group PLC 21,903 110
Reckitt Benckiser PLC 23,998 712
Reed International PLC 57,408 521
Rentokil Initial PLC 125,448 359
Reuters Holding PLC 68,277 512
Rexam PLC 20,632 177
Rio Tinto PLC 44,707 1,388
RMC Group PLC 5,539 88
Rolls-Royce Group PLC 97,340 478
Royal & Sun Alliance Insurance Group PLC 86,290 139
Royal Bank of Scotland Group PLC 82,618 2,738
Sage Group PLC 51,920 193
Scot Power PLC 55,549 441
Scottish & Southern Energy PLC 26,153 438
Serco Group PLC 31,435 147
Severn Trent PLC 12,577 218
Shell Transportation & Trading Co. PLC 377,794 3,295
Signet Group PLC 83,042 173
Smith & Nephew PLC 11,861 116
Smiths Industries PLC 22,399 355
SSL International PLC 403 3
Tate & Lyle PLC 29,332 243
Taylor Woodrow PLC 15,253 82
Tesco PLC 261,126 1,515
Tompkins PLC 28,072 143
Unilever PLC 147,897 1,403
United Business Media PLC 15,316 156
United Utilities PLC 18,523 223
United Utilities PLC, A Shares 12,447 107
Vodaphone Airtouch PLC 2,600,334 6,705
Whitbread PLC 12,590 209
William Hill PLC 18,698 204
Wolseley PLC 29,048 600
WPP Group PLC 57,154 621
Yell Group PLC 20,256 174
------------
81,049
------------
GREECE (0.2%)
Alpha Bank A.E. 8,400 283
National Bank of Greece SA 12,654 426
Titan Cement Co. 800 26
------------
735
------------
HONG KONG (1.1%)
Angang New Steel Co., Ltd., H Shares 70,000 38
ASM Pacific Technology, Ltd. 1,500 6
Bank of East Asia, Ltd. 37,757 113
Beijing Datang Power Generation 114,000 81
BOC Hong Kong Holdings, Ltd. 69,000 127
Cathay Pacific Airways, Ltd. 26,000 47
Cheung Kong Infrastructure Holdings, Ltd. 39,000 357
China Southern Airlines * 94,000 34
CLP Holdings, Ltd. 45,680 259
Hang Lung Properties, Ltd. 32,000 48
CONTINUED
59
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
HONG KONG, CONTINUED
Hang Seng Bank, Ltd. 18,400 $ 249
Henderson Land Development, Ltd. 18,000 85
Hong Kong & China Gas Co., Ltd. 100,348 208
Hong Kong Electric Holdings, Ltd. 36,000 161
Hong Kong Exchanges & Clearing, Ltd. 27,000 67
Hopewell Holdings, Ltd. 8,000 20
Huaneng Power International 244,000 170
Hutchison Whampoa, Ltd. 57,000 520
Hysan Development Co., Ltd. 7,206 14
MTR Corp. 36,801 58
New World Development Co., Ltd. 35,296 34
PCCW, Ltd. 81,047 46
Petrochina 1,400,000 777
Sino Land Company, Ltd. 25,443 23
Sinopec Shanghai Petrochem 186,000 68
Sun Hung Kai Properties, Ltd. 35,136 325
Swire Pacific, Ltd. 24,500 192
Techtronic Industries Co., Ltd. 25,000 56
Television Broadcasts, Ltd. 5,000 24
Wharf Holdings, Ltd. 32,600 105
------------
4,312
------------
INDIA (0.0%)
Larsen & Toubro, Ltd. GDR 1 --#
------------
INDONESIA (0.0%)
PT Mulia Industrindo Tbk * 19,000 1
------------
IRELAND (0.6%)
Allied Irish Banks PLC 41602 827
Bank of Ireland 47,320 752
CRH PLC 15,106 400
DCC PLC 1,498 34
Elan Corp. PLC * 13,100 341
Grafton Group PLC * 1,311 16
Independent News & Media PLC 7,163 21
Irish Life & Permanent PLC 1,760 32
Kerry Group PLC 2,168 51
------------
2,474
------------
ITALY (2.3%)
Alleanza Assicurazioni SpA 6,729 91
Assicurazioni Generali 11,415 378
Autogrill SpA * 1,564 25
Banca Fideuram SpA 2,974 16
Banca Monte dei Paschi di Seina SpA 10,883 35
Banca Nazionale del Lavoro SpA * (g) 19,082 51
Banca Popolare di Milano 2,038 18
Banche Popolari Unite Scrl 1,567 32
Banco Popolare di Verona e Novara Scrl 10,993 211
Benetton Group SpA 1,984 26
Capitalia SpA 7,884 36
Credito Italiano 132,735 730
Enel SpA 20,686 194
ENI SpA 98,142 2,383
Fiat SpA * 1,635 14
Finmeccanica SpA 145,282 136
IntesaBci SpA 107,795 500
Intesabci SpA-RNC 10,733 44
Italcementi SpA 1,423 24
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
ITALY, CONTINUED
Luxottica Group SpA 1,227 $ 27
Mediaset SpA 17,204 240
Mediobanca SpA 4,659 79
Mediolanum SpA 2,235 17
Pirelli SpA 65,537 93
RAS SpA 4,134 93
San Paolo IMI SpA 30,093 419
Seat Pagine Gialle SpA 90,364 39
Snam Rete Gas SpA 2,807 17
Telecom Italia Mobile SpA (g) 155,271 1,080
Telecom Italia SpA 364,710 1,444
Telecom Italia SpA, RNC 225,449 722
Tiscali SpA * (g) 4,956 17
------------
9,231
------------
JAPAN (25.5%)
Acom Co., Ltd. 4,520 318
Advantest 4,000 334
AEON Co., Ltd. 30,300 509
AEON Credit Service Co., Ltd. 1,400 98
Aiful Corp. 2,650 301
Ajinomoto Co., Inc. 32,400 392
Alps Electric Co., Ltd. 9,000 123
Amada Co., Ltd. 12,000 71
Asahi Breweries, Ltd. 23,600 294
Asahi Glass Co., Ltd. 58,800 620
Asahi Kasei Corp. 78,000 385
Asatsu, Ltd. 800 23
Bank of Yokohama, Ltd. 69,000 435
Benesse Corp. 2,100 75
Bridgestone Corp. 46,000 903
Canon, Inc. 43,900 2,286
Casio Computer Co., Ltd. 17,100 239
Central Japan Railway Co.(g) 72 583
Chiba Bank, Ltd. 41,000 271
Chubu Electric Power Co., Inc. 31,700 749
Chugai Pharmaceutical Co., Ltd. 11,304 178
Citizen Watch Co., Ltd. 15,300 139
Credit Saison Co., Ltd. 8,600 292
CSK Corp. 4,700 214
Dai Nippon Printing Co., Ltd. 26,600 419
Daicel Chemical Industries, Ltd. 4,000 21
Daiichi Pharmaceutical Co., Ltd. 13,000 300
Daikin Kogyo Corp. 6,700 180
Dainippon Ink & Chemicals, Inc. 39,000 98
Daito Trust Construction Co., Ltd. 4,900 226
Daiwa Bank Holdings, Inc. Npv * 258,000 525
Daiwa House Co., Ltd. 27,600 319
Daiwa Securities Group, Ltd. 172,000 1,165
Denki Kagaku Kogyo Kabushiki Kaisha, Ltd. 10,000 34
Denso Corp. 35,750 928
Dentsu, Inc. 24 61
Dowa Mining Co., Ltd. 32,000 220
East Japan Railway Co. 240 1,295
Ebara Corp. 19,800 92
Eisai Co., Ltd. 13,202 428
FamilyMart Co., Ltd. 2,300 74
Fanuc Co., Ltd. 9,200 621
Fast Retailing Co., Ltd. 3,800 259
CONTINUED
60
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Fuji Photo Film Co., Ltd. 25,000 $ 897
Fuji Television Network 52 114
Fujikura 8,000 36
Fujisawa Pharmaceutical Co. 9,200 237
Fujitsu, Ltd. (g) 95,000 552
Furukawa Electric Co., Ltd. * 30,800 165
Hankyu Department Stores, Inc. 2,000 15
Hirose Electric Co., Ltd. 1,700 180
Hitachi Chemical Co., Ltd. 1,000 17
Hitachi, Ltd. 171,000 1,135
Hokkaido Electric Power Co., Inc. 8,600 170
Hokuhoku Financial Group, Inc. 55,000 149
Honda Motor Co., Ltd. 53,751 2,815
Hoya Corp. 5,500 566
Isetan Co., Ltd. 13,100 155
Ishihara Sangyo Kaisha, Ltd. 4,000 9
Ishikawajima-Harima Heavy Industries
Co., Ltd. * 35,000 51
Ito Yokado Co., Ltd. 17,300 693
Itochu Corp. 72,000 340
Itochu Techno-Science Corp. 2,200 86
Japan Airlines System Corp. * 39,000 116
Japan Real Estate Investment Corp. 17 144
Japan Synthetic Rubber 9,100 193
Japan Tobacco, Inc. 33 350
JFE Holdings, Inc. 30,000 829
JGC Corp. 6,000 57
Joyo Bank, Ltd. 39,000 204
Kajima Corp. 51,400 227
Kaneka Corp. 18,000 200
Kansai Electric Power Co., Inc. 36,700 712
Kao Corp. 33,000 767
Kawasaki Heavy Industries, Ltd. 29,000 48
Kawasaki Kisen Kaisha, Ltd. 2,000 14
Keihin Electric Express Railway Co., Ltd. 10,000 63
Keio Electric Railway Co., Ltd. 6,000 36
Keyence Corp. 1,700 390
Kikkoman Corp. 4,000 40
Kinki Nippon Railway Co., Ltd. 89,230 294
Kirin Brewery Co., Ltd. 47,400 479
Kobe Steel, Ltd. 151,000 240
Kokuyo Co., Ltd. 1,900 24
Komatsu, Ltd. 57,400 426
Komori Corp. 2,000 31
Konami Co., Ltd. 5,700 127
Konica Corp. 23,500 295
Kubota Corp. 86,000 460
Kuraray Co., Ltd. 23,000 212
Kurita Water Industries, Ltd. 1,900 29
Kyocera Corp. 8,600 619
Kyowa Hakko Kogyo Co., Ltd. 23 --#
Kyushu Electric Power Co., Inc. 20,400 404
Lawson, Inc. 2,400 93
Mabuchi Motor Co., Ltd. 1,600 109
Marubeni Corp. 54,800 160
Marui Co., Ltd. 28,100 375
Matsushita Electric Industrial Co., Ltd. 109,000 1,617
Matsushita Electric Works 5,000 45
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Meiji Seika Co., Ltd. 4,000 $ 19
Meitec Corp. 900 33
Millea Holdings, Inc. 95 1,311
Minebea Co., Ltd. 15,000 65
Mitsubishi Chemical Corp. 108,000 343
Mitsubishi Corp. 65,300 766
Mitsubishi Electric Corp. 101,800 501
Mitsubishi Estate Co., Ltd. 96,000 1,213
Mitsubishi Gas Chemical Co., Inc. 4,000 19
Mitsubishi Heavy Industries, Ltd. 175,000 475
Mitsubishi Logistics Corp. 2,000 21
Mitsubishi Materials Corp. 107,000 244
Mitsubishi Rayon Co., Ltd. 30,000 104
Mitsubishi Tokyo Financial Group, Inc. 248 2,337
Mitsui & Co., Ltd. 66,800 619
Mitsui Chemicals, Inc. 20,000 116
Mitsui Fudosan Co., Ltd. (g) 70,400 875
Mitsui Mining & Smelting Co., Ltd. 64,000 301
Mitsui O.S.K. Lines, Ltd. 7,000 44
Mitsui Sumitomo Insurance Co. 127,230 1,116
Mitsui Trust Holding, Inc. 39,513 418
Mitsukoshi, Ltd. (g) 37,000 189
Mizuho Financial Group, Inc. 440 2,119
Murata Manufacturing Co., Ltd. 12,300 642
NEC Corp. 86,200 494
NEC Electronics Corp. 2,000 101
Net One Systems Co., Ltd. 34 134
New Oji Paper Co. 58,400 329
NGK Insulators, Ltd. 15,600 158
NGK Spark Plug Co., Ltd. 12,000 121
Nidec Corp. 2,400 269
Nikko Cordial Corp, 63,000 297
Nikon Corp. (g) 16,000 210
Nintendo Co., Ltd. 6,000 680
Nippon Building Fund, Inc. 17 143
Nippon Express Co., Ltd. 44,600 218
Nippon Meat Packers, Inc. 11,600 157
Nippon Mining Holdings, Inc. 12,000 61
Nippon Oil Co., Ltd. 83,600 573
Nippon Sheet Glass Co., Ltd. 17,000 73
Nippon Steel Corp. 388,800 945
Nippon Telegraph and Telephone Corp. 365 1,539
Nippon Unipac Holding 50 216
Nippon Yusen Kabushiki Kaisha 72,000 399
Nissan Chemical Industries, Ltd. 6,000 50
Nissan Motors Co., Ltd. 146,000 1,543
Nisshin Flour Milling Co., Ltd. 4,000 45
Nisshin Steel Co., Ltd. 5,000 12
Nisshinbo Industries, Inc. 2,000 16
Nissin Food Products Co., Ltd. 3,800 101
Nitto Denko Corp. 8,900 473
Nomura Research Institute, Ltd. 1,400 138
Nomura Securities Co., Ltd. 109,000 1,431
NSK, Ltd. 34,000 176
NTN Corp. 23,000 130
NTT Data Corp. 85 293
NTT DoCoMo, Inc. 568 987
Obayashi Corp. 40,000 256
CONTINUED
61
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
OBIC Co., Inc. 500 $ 102
Oki Electric Industry Co., Ltd. * 31,000 137
Olympus Optical Co., Ltd. 7,000 146
Omron Corp. 12,100 292
Onward Kashiyama Co., Ltd. 4,000 62
Oracle Corp. Japan (g) 2,200 110
Oriental Land Co., Ltd. 2,500 171
Orix Corp. 5,000 660
Osaka Gas Co., Ltd. 103,200 312
Pioneer Electronic Corp. 8,701 161
Promise Co., Ltd. 5,500 387
Ricoh Co., Ltd. 35,000 618
Rohm Co., Ltd. 5,600 510
Sampo Japan Insurance, Inc. 41,000 402
Sanden Corp. 1,000 6
Sankyo Co., Ltd. 19,404 432
Sanyo Electric Co., Ltd. 86,000 277
Secom Co., Ltd. 9,100 362
Seiko Epson Corp. 4,700 195
Sekisui Chemical Co., Ltd. 12,000 94
Sekisui House, Ltd. 34,600 401
Seven-Eleven Japan Co., Ltd. 20,200 612
Sharp Corp. 44,200 677
Shimachu Co., Ltd. 1,900 46
Shimamura Co., Ltd. 2,000 144
Shimano, Inc. 4,600 127
Shimizu Construction 36,600 182
Shin-Etsu Chemical Co. 18,648 738
Shinsei Bank, Ltd. 31,000 188
Shionogi & Co., Ltd. 17,000 214
Shisiedo Co., Ltd. 21,800 303
Shizuoka Bank, Ltd. 33,000 334
Showa Denko KK 38,000 91
Showa Shell Sekiyu KK 7,000 64
Skylark Co., Ltd. 5,700 97
SMC Corp. 3,800 444
Softbank Corp. 13,600 643
Sony Corp. 40,698 1,508
Stanley Electric Co., Ltd. 5,700 87
Sumitomo Bakelite Co. 4,000 25
Sumitomo Chemical Co., Ltd. 72,600 375
Sumitomo Corp. 43,200 370
Sumitomo Electric Industries 28,400 310
Sumitomo Heavy Industries, Ltd. * 8,000 36
Sumitomo Metal Industry, Ltd. 229,000 345
Sumitomo Metal Mining Co., Ltd. 60,600 416
Sumitomo Mitsui Financial Group, Inc. (g) 359 2,514
Sumitomo Osaka Cement Co., Ltd. 7,000 17
Sumitomo Realty & Development Co., Ltd. 34,000 475
Sumitomo Trust & Banking 60,000 407
Taiheiyo Cement Corp. 8,000 21
Taisei Construction 32,000 125
Taisho Pharmaceutical Co. 2,913 61
Taiyo Yuden Co., Ltd. 4,000 42
Taka Shi Maya Co., Ltd. 21,000 201
Takara Shuzo Co., Ltd. 4,000 34
Takeda Chemical Industries, Ltd. 45,500 2,159
Takefuji Corp. 4,000 280
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Takuma Co., Ltd. 3,000 $ 24
TDK Corp. 6,500 452
Teijin, Ltd. 50,400 209
Teikoku Oil Co., Ltd. 4,000 25
Terumo Corp. 10,700 309
The 77 Bank, Ltd. 19,000 138
The Bank of Fukuoka, Ltd. 31,000 198
The Daimaru, Inc. 19,000 166
THK Co., Ltd. 600 12
TIS, Inc. 2,551 113
Tobu Railway Co., Ltd. 29,600 117
Toda Corp. 6,000 31
Toho Co. 1,600 26
Tohoku Electric Power Co., Ltd. 21,700 386
Tokyo Broadcasting System, Inc. 4,600 77
Tokyo Electric Power Co., Inc. 58,500 1,394
Tokyo Electronics, Ltd. 9,700 565
Tokyo Gas Co., Ltd. (g) 128,600 531
Tokyu Corp. 48,400 267
Tonengeneral Sekiyu K.K. 5,000 46
Toppan Printing Co., Ltd. 27,600 296
Toray Co. 78,100 364
Toshiba Corp. 153,000 619
Tosoh Corp. 30,000 138
Tostem Corp. 9,600 175
Toto, Ltd. 23,600 214
Toyo Seikan Kaisha, Ltd. 8,000 154
Toyobo Co., Ltd. 2,000 5
Toyoda Gosei Co., Ltd. 500 10
Toyota Automatic Loom Works 2,900 70
Toyota Motor Corp. 150,800 5,863
Trend Micro, Inc. 6,200 278
UJF Holdings, Inc. 234 1,398
Uni-Charm Corp. 1,600 72
Uniden Corp. 3,000 58
UNY Co., Ltd. 5,000 59
USS Co., Ltd. 3,780 313
Wacoal Corp. 2,000 22
West Japan Railway Co. 17 67
World Co., Ltd. 850 31
Yahoo Japan Corp. * 95 481
Yakult Honsha Co., Ltd. 4,000 72
Yamada Denki Co., Ltd. 7,400 311
Yamaha Corp. 4,300 66
Yamaha Motor Co., Ltd. 1,000 16
Yamanouchi Pharmaceutical Co., Ltd. 16,301 593
Yamato Transport Co., Ltd. 17,000 254
Yamazaki Baking Co., Ltd. 3,000 29
Yokogawa Electric Corp. 11,400 151
------------
100,380
------------
MALAYSIA (0.7%)
AMMB Holdings Berhad 98,300 85
Berjaya Sports Toto Berhad 51,800 55
Commerce Asset-Holdings Berhad 93,800 118
Gamuda Berhad 29,700 43
Genting Berhad 25,000 132
Hong Leong Bank Berhad 50,600 73
IOI Corp. Berhad 50,000 122
CONTINUED
62
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
MALAYSIA, CONTINUED
Kuala Lumpur Kepong Berhad 26,800 48
Magnum Corp. Berhad 44,000 27
Mal Rothmans Pall Mall 11,100 139
Malakoff Berhad 42,000 83
Malayan Banking Berhad 119,000 384
Malaysian International Shipping Corp.
Berhad 37,700 153
Maxis Communications Berhad 50,000 125
Nestle Berhad 8,000 50
O.Y.L. Industries Berhad 5,400 51
Petronas Gas Berhad 10,000 19
PLUS Expressways Berhad 114,400 83
Proton Holdings Berhad 18,000 40
Public Bank Berhad 70,000 148
Resorts World Berhad 33,700 90
RHB Capital Berhad 93,000 60
Sime Darby Berhad 96,800 163
SP Setia Berhad 53,200 62
Tanjong PLC 17,900 69
Telekom Malaysia Berhad 59,000 171
Tenaga Nasional Berhad 61,500 173
YTL Corporation Berhad 58,000 85
------------
2,851
------------
NETHERLANDS (4.4%)
ABN AMRO Holding NV 79,277 2,144
Aegon NV 57,287 776
Akzo NV 11,287 471
ASML Holding NV * 20,930 342
DSM NV 2,500 155
Elsevier NV 27,950 377
Hagemeyer NV * 2,132 5
Heineken NV 9,583 328
ING Groep NV 80,828 2,325
Koninklijke KNP NV 81,289 780
Oce NV 3,666 56
Philips Electronics NV 59,147 1,546
Royal Dutch Petroleum (g) 97,265 5,644
TNT Post Groep NV 14,302 392
Unilever NV 23,524 1,532
Vedior NV 4,797 85
VNU NV 11,300 330
Wolters Kluwer NV CVA 13,628 246
------------
17,534
------------
NEW ZEALAND (0.0%)
Auckland International Airport, Ltd. 1,787 10
Carter Holt Harvey, Ltd. 5,862 9
Contact Energy, Ltd. 2,639 12
Fisher & Paykel Appliances Holdings, Ltd. 1,810 5
Fisher & Paykel Industries, Ltd. 2,095 5
Fletcher Building, Ltd. 2,432 11
Sky City Entertainment Group, Ltd. 2,451 9
Telecom Corp. of New Zealand, Ltd. 12,253 54
The Warehouse Group, Ltd. 1,226 3
------------
118
------------
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
NORWAY (0.3%)
DnB Holding ASA 13,396 $ 123
Norsk Hydro ASA 6,142 468
Norske Skogindustrier AG 4,400 86
Orkla SA 8,000 261
Schibsted ASA 1,250 34
Statoil ASA 11,500 174
Storebrand ASA 1,300 11
Tandberg ASA 800 9
Telenor ASA 12,900 119
Tomra Systems ASA 2,135 11
Yara International ASA * 6,142 72
------------
1,368
------------
PORTUGAL (0.2%)
Banco Commercial 88,339 243
BPI-SGPS SA 2,389 10
Brisa Auto-Estradas 6,482 61
Electricidade de Portugal SA 36,526 108
Portugal Telecom SA 34,562 427
PT Multimedia-Servicos de Telecomunicacoes
e Multimedia, SGPS, SA 687 18
Sonae, SGPS SA 25,407 39
------------
906
------------
RUSSIA (0.4%)
Lukoil ADR 5,900 734
MMC Norilsk Nickel 3,700 213
Oao Gazprom ADR (g) 3,598 123
RAO Unified Energy Systems 4,100 119
Rostelecom ADR (g) 6,600 71
Surgutneftegaz ADR (g) 4,600 174
Tatneft ADR (g) 3,300 105
------------
1,539
------------
SINGAPORE (1.5%)
Ascendas Real Estate Investment Trust 59,000 71
Capitaland, Ltd. (g) 96,000 134
CapitaMall Trust 53,300 65
Chartered Semiconductor
Manufacturing, Ltd. * (g) 105,000 65
City Developments, Ltd. 56,370 236
ComfortDelGro Corp., Ltd. 168,333 154
Creative Technology, Ltd. 5,355 73
DBS Group Holdings, Ltd. 94,945 917
Fraser & Neave, Ltd. 14,000 143
Keppel Corp., Ltd. 49,000 275
Neptune Orient Lines, Ltd. 92,000 191
Oversea-Chinese Banking Corp., Ltd. 82,745 692
Overseas Union Enterprises 3,735 18
Sembcorp Industries, Ltd. 82,303 93
Singapore Airlines, Ltd. (g) 47,000 336
Singapore Exchange, Ltd. 100,911 116
Singapore Post, Ltd. 157,000 86
Singapore Press Holdings, Ltd. 140,743 383
Singapore Technology Engineering, Ltd. 120,760 177
Singapore Telecommunications, Ltd. 458,503 714
United Overseas Bank, Ltd. 102,720 872
United Overseas Land, Ltd. 41,704 55
Venture Manufacturing, Ltd. 20,445 196
------------
6,062
------------
CONTINUED
63
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
SPAIN (4.5%)
Abertis Infraestructuras 8,466 192
Acerinox, SA 4,074 62
Actividades de Construccion y Servicios, SA 17,568 440
Altadis SA 16,916 738
Amadeus Global Travel Distribution SA 15,263 144
Antena 3 Television SA * 818 63
Banco Bilbao Vizcaya-Argentari 123,356 2,075
Banco Popular Espanol SA 6,918 459
Banco Santander Central Hispano SA (g) 172,706 2,050
Endesa SA 55,709 1,268
Gas Natural SDG SA 32,444 937
General De Aguas De Barcelona SA 3,730 79
Grupo Ferrovial SA 3,589 215
Iberdrola SA 54,070 1,338
Indra Sistemas SA 3,081 53
Industria de Diseno Textil SA 6,289 178
Repsol SA 45,367 1,158
Telefonica SA 339,812 6,179
Union Electric Penosa SA 3,967 107
Vallehermoso SA 4,713 75
------------
17,810
------------
SWEDEN (2.2%)
Alfa Laval AB 700 11
Assa Abloy AB, Series B 14,650 232
Atlas Copco AB, Series A 3,764 175
Atlas Copco AB, Series B 1,000 43
Billerud 3,250 52
Electrolux AB, Series B 19,700 420
Eniro AB 7,200 72
Ericsson LM, Series B * 440,737 1,293
Gambro AB, Series A 900 13
Getinge AB, B Shares 6,200 81
Hennes & Mauritz AB, Series B 18,450 608
Holmen AB 2,900 97
Modern Times Group MTG AB * 2,150 57
Nordic Baltic 124,322 1,151
Sandvik AB 9,188 375
Securitas AB, Series B 24,100 381
Shanska AB, Series B 36,117 418
Skandia Forsakrings AB 16,831 87
Skandiaviska Enskil 21,620 385
SKF AB, Series B 5,750 264
Svenska Cellulosa AB, Series B 10,000 383
Svenska Handelsbanken, Series A 34,902 826
Svenskt Stal AB, Series A 1,300 31
Swedish Match AB 18,900 227
Tele2 AB 3,475 119
Telia 98,526 558
Volvo AB, Series A 3,233 126
Volvo AB, Series B 8,310 337
WM-Data AB 7,800 17
------------
8,839
------------
SWITZERLAND (4.7%)
Abb, Ltd. * 22,145 122
Adecco SA, Registered 3,071 159
Ciba Specialty Chemicals AG 1,390 100
Clariant AG 2,976 49
Compagnie Finaciere Richemont AG 25,245 790
CONTINUED
SHARES VALUE
------------ ------------
FOREIGN STOCKS, CONTINUED
SWITZERLAND, CONTINUED
Credit Suisse Group 29,039 $ 1,169
Geberit AG 69 51
Givaudan 207 131
Holcim 3,178 198
Logitech International SA * 1,090 67
Lonza Group AG 1,056 65
Nestle (g) 16,296 4,277
Nobel Biocare Holding AG 1,000 175
Novartis AG, Registered 73,928 3,544
Roche Holdings AG, Genusscheine 21,742 2,315
Schindler Holding AG 137 50
Serono SA (g) 343 212
Societe Generale de Surveillance
Holdings SA 192 136
Straumann AG 450 95
Sulzer AG, Registered 63 25
Swiss Reinsurance 2,727 186
Swisscom AG 567 214
Syngenta 5,320 572
The Swatch Group AG 653 18
The Swatch Group AG, Series B 626 87
UBS AG 41,010 3,326
Zurich Financial Services 1,884 313
------------
18,446
------------
THAILAND (1.0%)
Advanced Info Service Public Co., Ltd. 174,300 479
Bangkok Bank Public Co., Ltd. 68,900 191
Bangkok Bank Public Co., Ltd.,
Foreign Registered Shares 132,600 399
BEC World Public Co., Ltd. 175,200 77
Charoen Pokphand Foods Public Co., Ltd. 436,829 42
Delta Electronics Public Co., Ltd. 62,000 31
Electricity Generating PLC 33,548 72
Hana Microelectronics Public Co., Ltd. 37,410 20
Kasikornbank Public Co., Ltd., Foreign
Registered Shares * 277,357 417
Land and Houses Public Co., Ltd. 341,554 88
Land and Houses Public Co., Ltd.,
Foreign Registered Shares 255,315 71
National Finance Public Co., Ltd. 125,300 47
PTT Exploration & Production Co., Ltd. 20,158 151
PTT Public Co., Ltd. 145,300 694
Sahaviriya Steel Industries PLC 826,000 63
Shin Corp. Public Co., Ltd. 225,900 255
Siam Cement Public Co., Ltd. 33,277 219
Siam Cement Public Co., Ltd., Foreign
Registered Shares 60,100 418
Siam City Cement Public Co., Ltd.,
Foreign Registered Shares 19,600 132
Siam Commercial Bank Public Co.,
Ltd., Foreign Registered Shares 98,300 129
TISCO Finance Public Co., Ltd.,
Foreign Registered Shares 75,200 $ 54
------------
4,049
------------
TOTAL FOREIGN STOCKS 360,189
------------
CONTINUED
64
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
PREFERRED STOCKS (0.8%)
BRAZIL (0.7%)
Banco Bradesco SA 12,000 298
Brasil Telecom Participacoes SA 13,208,000 85
Caemi Mineracao e Metalurgica SA * 93,000 86
Companhia de Bebidas das Americas 967,000 248
Companhia Energetica de Minas Gerais 5,531,000 122
Companhia Siderurgica de Tubarao 808,000 44
Embratel Participacoes SA * 11,807,000 19
Empresa Brasileira de Aeronautica SA 19,000 151
Gerdau SA 8,000 136
Klabin SA 34,000 64
Petroleo Brasileiro SA 31,000 1,108
Sadia SA 27,000 52
Tele Centro Oeste Celular
Participacoes SA 13,534,566 45
Telesp Celular Participacoes SA * 23,754,000 59
Votorantim Celulose e Papel SA * 4,605 67
------------
2,584
------------
GERMANY (0.0%)
Volkswagen AG 1,041 37
------------
RUSSIA (0.1%)
Surgutneftegaz ADR 6,500 372
------------
THAILAND (0.0%)
Siam Commercial Bank Public Co., Ltd. 46,641 60
------------
TOTAL PREFERRED STOCKS 3,053
------------
INVESTMENT COMPANIES (3.7%)
UNITED STATES (3.7%)
Excelsior Pacific Asia Fund 33 --#
Franklin Mutual European Fund 72,960 1,413
Invesco Gold and Precision Metals Fund 59 --#
iShares MSCI Emerging Markets Index Fund (g) 5,300 1,064
iShares MSCI Germany Index Fund (g) 132,400 2,350
iShares MSCI Hong Kong Index Fund (g) 398,500 4,592
iShares MSCI Switzerland Index Fund (g) 20,800 344
Matthews China Fund 55,918 769
Matthews Pacific Tiger Fund 80,040 1,249
Oakmark International Fund 30,250 630
Oakmark International Small Cap Fund 54,067 1,102
Scudder Latin America Fund 14,934 466
T. Rowe Price Japan Fund * 15,453 129
Vanguard International Growth Fund 14,470 265
Vanguard International Value Fund 9,181 278
------------
TOTAL INVESTMENT COMPANIES 14,651
------------
SHORT TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (5.9%)
Pool of various securities for
Fifth Third Funds $ 23,315 23,315
------------
TOTAL SHORT TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 23,315
------------
TOTAL INVESTMENTS (COST $387,106) + - 101.5% 401,451(j)
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.5)% (6,011)
------------
NET ASSETS - 100.0% $ 395,440
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
COMMERCIAL PAPER (6.3%)
Goldman Sachs Group, Inc., 2.42%,
2/15/05 ** (f) $ 8,170 $ 8,162
Nestle Capital Corp., 2.28%, 2/10/05 ** (f) 8,850 8,843
------------
TOTAL COMMERCIAL PAPER 17,005
------------
CORPORATE BONDS (63.2%)
AIG Sunamerica Global Finance, 6.90%,
3/15/32 (g) 955 1,154
Alliant Master Trust, Series 2000-1A,
Class A, 2.89%, 6/20/06 (d) (e) 4,000 4,001
AOL Time Warner, Inc., 7.70%, 5/1/32 480 598
Bank of Montreal-Chicago, 7.80%, 4/1/07 2,750 2,969
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-10, Class 12A3,
4.74%, 1/25/35 (d) 2,100 2,112
Bear Stearns Asset Backed Securities,
Inc., Series 2004-HE3, Class 1A1, 2.70%,
5/25/31 (d) 2,644 2,644
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 2,599 2,771
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14, Class
A4, 5.20%, 1/12/41 2,000 2,079
Chase Funding Loan Acquisition Trust,
Series 2004-OPT1, Class M1, 2.99%,
6/25/34 (d) 3,660 3,681
Citigroup, Inc., 6.50%, 2/7/06 175 180
Comcast Cable, 7.13%, 6/15/13 1,750 2,024
Countrywide Asset-Backed Certificates,
Series 2002-BC1, Class M1, 3.37%,
4/25/32 (d) 2,800 2,808
Cox Communications, Inc., 5.50%, 10/1/15 800 803
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 447 458
DaimlerChrysler, 8.50%, 1/18/31 1,035 1,326
Devon Energy Corp., 7.95%, 4/15/32 700 919
Equity One ABS, Inc., Series 2004-1,
Class AF4, 4.15%, 4/25/34 (d) 4,000 3,996
First Franklin Mortgage Loan, 2.47%,
7/25/33 (d) 1,729 1,726
Firstenergy Corp., 6.45%, 11/15/11 1,070 1,161
Fleet/Norstar Group, 8.63%, 1/15/07 2,000 2,186
Ford Motor Co., 7.45%, 7/16/31 (g) 720 718
France Telecom, 9.50%, 3/1/31 650 904
Gazprom International, 7.20%, 2/1/20 (e) 1,000 1,059
General Electric Capital Corp., 6.75%,
3/15/32 1,055 1,265
General Motors Acceptance Corp.,
6.13%, 9/15/06 3,000 3,050
General Motors Acceptance Corp.,
6.88%, 9/15/11 170 171
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust, 2.76%,
12/25/20 (d) 4,494 4,490
CONTINUED
65
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust, 4.34%,
11/1/34 (d) $ 1,750 $ 1,749
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust, 2.72%,
2/25/35 (d) 8,000 8,014
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4, 4.95%,
1/11/35 4,000 4,114
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 2,000 2,055
GS Mortgage Securities Corp. II, Series
2004-C1, Class A1, 3.66%, 10/10/28 5,160 5,091
GS Mortgage Securities Corp. II, Series
2004-GG2, Class A3, 4.60%, 8/10/38 4,900 4,987
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 391 388
Household Finance Corp., 6.50%, 11/15/08 170 184
JP Morgan Chase Commercial
Mortgage, 5.26%, 7/12/37 865 903
JP Morgan Chase Commercial Mortgage
Securities, Series 200-CIBC, Class A2,
6.00%, 3/15/33 2,044 2,119
JP Morgan Mortgage Trust, Series
2004-A5, Class 4A2, 4.85%, 12/25/34 4,552 4,549
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.88%, 1/25/35 1,360 1,366
Kinder Morgan Energy Partners, 5.00%,
12/15/13 1,010 1,015
Lehman Brothers Holdings, 8.25%, 6/15/07 170 187
Midland Bank PLC, 7.63%, 6/15/06 2,000 2,120
Morgan Stanley Capital I, 5.11%, 6/15/40 3,200 3,301
Morgan Stanley Capital I, Series
2004-IQ7, Class A2, 5.02%, 6/15/38 3,300 3,411
Morgan Stanley Dean Witter Capital I,
4.74%, 11/13/36 5,200 5,274
Morgan Stanley Mortgage Loan Trust,
5.00%, 8/25/19 3,160 3,195
Motorola, Inc., 6.50%, 11/15/28 805 878
National City Bank, 7.25%, 7/15/10 3,000 3,439
National Rural Utilities, 7.25%, 3/1/12 125 145
Navistar Financial Corp. Owner Trust,
1.73%, 2/15/07 388 385
Navistar Financial Corp. Owner Trust,
2.55%, 4/15/08 (d) 8,200 8,217
Navistar Financial Corp. Owner Trust,
Series 2004-A, Class B, 2.46%, 3/15/11 1,864 1,824
NCNB Corp., 10.20%, 7/15/15 5,000 6,869
Norfolk Southern, 9.00%, 3/1/21 130 179
Oncor Electric Delivery, 7.00%, 5/1/32 480 571
Pemex Master Trust, 6.13%, 8/15/08 825 867
Republic New York Corp., 7.00%, 3/22/11 2,000 2,245
Residential Accredit Loans, Inc., 2.80%,
3/25/34 (d) 3,661 3,655
Residential Asset Securities Corp.,
2.77%, 3/25/34 (d) 2,000 2,000
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
Science Applications International Co.,
5.50%, 7/1/33 $ 2,105 $ 2,090
SLM Corp., 5.00%, 4/15/15 175 176
Swiss Bank Corp. - New York, 7.38%,
7/15/15 2,000 2,410
Thornburg Mortgage Securities Trust,
Series 2004-2, Class A3, 2.70%, 6/25/44 (d) 5,200 5,201
Trans-Canada Pipeline, 5.60%, 3/31/34 750 770
Travelers Property Casualty Corp.,
7.75%, 4/15/26 85 104
Truck Retail Installment Paper Corp.,
2.82%, 5/15/13 (d) 6,950 6,955
UBS Preferred Funding Trust I, 8.62%,
10/29/49 (d) 925 1,105
United Mexican States, 4.63%, 10/8/08 2,460 2,485
US Bank NA, 6.30%, 2/4/14 345 385
Valero Energy Corp., 7.50%, 4/15/32 750 931
Verizon Florida, Inc., 6.13%, 1/15/13 1,975 2,105
Washington Mutual, Series 2003-AR9,
Class 1A6, 4.10%, 9/25/33 5,862 5,834
Washington Mutual, Series 2004-AR3,
Class A-2, 4.24%, 6/25/34 2,167 2,150
YUM! Brands Inc., 7.70%, 7/1/12 1,250 1,484
------------
TOTAL CORPORATE BONDS 170,734
------------
MUNICIPAL BONDS (0.8%)
CALIFORNIA (0.8%)
San Bernardino County, Financing
Authority Pension Obligation Revenue,
6.99%, 8/1/10 2,000 2,260
------------
TOTAL MUNICIPAL BONDS 2,260
------------
U.S. GOVERNMENT AGENCIES (49.3%)
FANNIE MAE (31.6%)
6.05%, 12/1/08 2,904 3,074
4.25%, 10/25/16 3,643 3,642
6.00%, 2/1/17 141 148
6.00%, 5/1/17 328 343
6.00%, 6/1/17 187 196
6.00%, 6/1/17 291 305
6.50%, 6/1/17 410 434
6.50%, 8/1/17 345 364
5.50%, 12/1/17 2,037 2,104
5.50%, 1/1/18 20 20
5.50%, 1/1/18 1,036 1,069
5.50%, 1/1/18 171 177
5.50%, 2/1/18 14 14
5.50%, 2/1/18 86 89
4.50%, 5/1/18 TBA 13,550 13,538
6.00%, 5/1/18 1,849 1,936
5.00%, 7/1/18 TBA 5,200 5,286
4.00%, 12/25/20 5,000 5,022
4.00%, 2/25/21 5,339 5,360
7.50%, 6/1/28 381 409
6.50%, 8/1/28 218 229
CONTINUED
66
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FANNIE MAE, CONTINUED
6.50%, 6/1/29 $ 250 $ 262
6.50%, 4/1/32 435 456
6.50%, 6/1/32 1,557 1,630
7.00%, 6/1/32 631 671
6.50%, 7/1/32 722 756
6.50%, 7/1/32 919 962
7.50%, 12/1/32 370 396
6.00%, 1/1/33 TBA 3,000 3,093
6.00%, 1/1/33 693 716
6.50%, 3/1/33 423 442
5.00%, 5/1/33 TBA 19,000 18,966
5.50%, 5/1/33 TBA 9,500 9,680
6.00%, 2/1/34 935 966
6.00%, 2/1/34 937 968
7.00%, 9/1/34 1,647 1,743
------------
85,466
------------
FEDERAL HOME LOAN BANK (1.7%)
4.06%, 8/25/09 4,624 4,604
------------
FREDDIE MAC (14.7%)
4.50%, 8/15/16 3,000 3,020
5.50%, 1/1/18 77 79
6.50%, 1/1/29 2,659 2,790
6.75%, 3/15/31 1,300 1,636
7.00%, 1/1/32 240 256
6.50%, 7/1/32 525 551
6.25%, 7/15/32 (g) 3,500 4,167
7.00%, 8/1/32 1,001 1,059
6.50%, 9/1/32 216 226
6.50%, 1/20/33 1,643 1,726
5.50%, 2/1/33 TBA 13,900 14,175
6.00%, 9/1/33 1,009 1,042
4.50%, 6/1/34 1,050 1,025
4.50%, 9/1/34 1,218 1,189
6.00%, 10/1/34 6,670 6,892
------------
39,833
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (1.3%)
6.50%, 3/15/28 315 332
6.50%, 9/15/28 333 351
6.50%, 10/15/28 396 418
4.50%, 11/16/29 2,387 2,375
------------
3,476
------------
TOTAL U.S. GOVERNMENT AGENCIES 133,379
------------
U.S. TREASURY OBLIGATIONS (2.3%)
U.S. TREASURY BONDS (1.4%)
5.45%, 5/15/17 ** 5,800 3,333
6.13%, 8/15/29 85 103
5.38%, 2/15/31(g) 220 246
------------
3,682
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. TREASURY OBLIGATIONS, CONTINUED
U.S. TREASURY NOTES (0.9%)
6.75%, 5/15/05 (g) 1,925 $ 1,947
5.00%, 2/15/11 490 521
------------
2,468
------------
TOTAL U.S. TREASURY OBLIGATIONS 6,150
------------
MONEY MARKETS (1.5%)
Dreyfus Cash Management Money
Market Fund 101 --#
Federated Prime Value Obligations
Money Market Fund 3,931,457 3,931
------------
TOTAL MONEY MARKETS 3,931
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (2.9%)
Pool of various securities for
Fifth Third Funds $ 7,914 7,914
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 7,914
------------
TOTAL INVESTMENTS (COST $335,104) + - 126.3% 341,373
LIABILITIES IN EXCESS OF OTHER ASSETS - (26.3)% (71,067)
------------
NET ASSETS - 100.0% $ 270,306
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
67
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS (66.3%)
ABN AMRO Bank NV, 7.13%, 6/18/07 $ 7,300 $ 7,842
Anthem, Inc., 3.50%, 9/1/07 2,375 2,355
AT & T Broadband Corp., 8.38%, 3/15/13 1,750 2,162
Bank of Montreal-Chicago, 7.80%, 4/1/07 6,000 6,478
BB&T Corp., 7.25%, 6/15/07 6,000 6,457
Bear Stearns Co., Inc., 5.70%, 1/15/07 3,000 3,113
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 2,215 2,362
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14, Class
A3, 4.80%, 1/12/41 2,000 2,041
Bond Securitization Asset-Backed
Certificate, Series 2003-1, Class A1,
2.93%, 10/25/34 (d) 197 197
Chase Funding Mortgage Loan
Asset-Backed, Series 2004-2, Class 1A3,
4.21%, 9/25/26 5,070 5,075
Chase Mortgage Finance Corp., Series
2004-S1, Class A7, 4.50%, 2/25/19 7,036 6,981
Chevron Phillips Chemical Co., 5.38%,
6/15/07 6,015 6,204
CIT Group, Inc., 5.13%, 9/30/14 2,000 2,025
Citicorp Mortgage Securities, Inc., Series
2003-5, Class 2A2, 5.00%, 4/25/18 2,527 2,559
Citigroup, Inc., 5.00%, 3/6/07 3,500 3,595
Citigroup, Inc., 5.00%, 9/15/14 8,624 8,756
Commerce Group, Inc., 5.95%, 12/9/13 1,000 1,033
Commercial Mortgage Pass-Through
Certificate, Series 2004-LB3AC, Class B,
5.28%, 7/10/37 2,500 2,617
Commercial Mortgage Pass-Through
Certificate, Series 2004-LB4A, Class A5,
4.84%, 10/15/37 (d) 3,700 3,733
Commercial Mortgage Acceptance
Corp., Series 1998-C2, Class D, 6.72%,
9/15/30 5,550 6,044
Conoco Funding Co., 6.35%, 10/15/11 3,000 3,352
Countrywide Home Loan, 2.89%, 6/2/06 (d) 5,000 5,023
Countrywide Home Loan, 4.00%, 3/22/11 2,325 2,254
Cox Communications, Inc., 7.75%, 11/1/10 1,550 1,773
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 397 406
Credit Suisse First Boston Mortgage
Securities Corp., Series 2004-C5, Class
A3, 4.50%, 11/15/37 2,425 2,431
Credit-Based Asset Servicing and
Securitization, Series 2005-CB1, Class
AF3, 5.02%, 12/25/35 2,670 2,670
DaimlerChrysler, 3.35%, 9/26/05 (d) 5,000 5,020
Deutsche Mortgage Securities, Inc.,
Series 2004-2, Class A3, 3.78%, 1/25/34 1,500 1,491
Devon Financing Corp., 6.88%, 9/30/11 1,500 1,697
Dial Corp., 7.00%, 8/15/06 1,000 1,054
Duke Capital LLC, 4.37%, 3/1/09 (g) 2,000 2,006
Duke Energy Corp., 6.25%, 1/15/12 2,000 2,192
Duke Realty Corp., 2.78%, 12/22/06 (d) 1,905 1,904
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
Fedex Corp., 7.25%, 2/15/11 $ 2,000 $ 2,279
First Franklin Mortgage Loan, 2.47%,
7/25/33 (d) 2,161 2,158
First Horizon ABS Trust, Series
2004-HE4, Class A2, 4.07%, 7/25/19 3,825 3,787
First Horizon Mortgage Pass-Through
Trust, Series 2004-FL1, Class 2A1,
3.07%, 2/25/35 (d) 2,383 2,378
Fleet Financial Group, 7.38%, 12/1/09 (g) 5,000 5,684
Ford Motor Credit Co., 2.90%, 4/28/05 (d) 5,000 4,992
Ford Motor Credit Co., 7.00%, 10/1/13 (g) 2,770 2,919
Fund American Cos., Inc., 5.88%, 5/15/13 1,000 1,024
Gazprom International, 7.20%, 2/1/20 (e) 2,000 2,120
General Electric Capital Corp., 5.88%,
2/15/12 (g) 6,000 6,488
General Electric Capital Corp., 4.75%,
9/15/14 3,000 3,016
General Motors Acceptance Corp.,
3.19%, 5/18/06 (d)(g) 5,000 4,982
General Motors Acceptance Corp.,
6.75%, 12/1/14 1,000 980
General Motors Nova Financial, 6.85%,
10/15/08 4,100 4,173
Goldman Sachs Group, Inc., 5.00%, 10/1/14 3,350 3,373
Green Tree Financial Corp., Series
1998-6, Class A, 6.27%, 6/1/30 1,253 1,280
GTE California, Inc., 6.70%, 9/1/09 3,000 3,258
Harborview Mortgage Loan Trust, Series
2004-5, Class 2A6, 4.07%, 6/19/34 3,980 3,917
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class A2, 3.56%, 2/15/12 2,400 2,393
Heller Financial, 6.85%, 5/15/31 5,000 5,462
Hertz Corp., 4.70%, 10/2/06 3,140 3,151
HSBC Bank USA, 4.63%, 4/1/14 (g) 2,000 1,976
HSBC Finance Corp., 6.38%, 10/15/11 2,000 2,206
Hyundai Auto Receivables Trust,
3.02%, 10/15/10 2,000 1,972
Hyundai Auto Receivables Trust, Series
2004-A, Class A4, 3.54%, 8/15/11 3,000 2,971
Indiana Michigan Power, 5.05%, 11/15/14 2,035 2,055
Indymac Home Equity Loan, Series
2002-B, Class B1, 4.52%, 10/25/33 1,395 1,422
International Lease Finance Corp.,
3.13%, 5/3/07 3,700 3,645
International Paper Co., 5.50%, 1/15/14 (g) 1,500 1,571
JP Morgan Chase & Co., 5.13%, 9/15/14 (g) 2,000 2,037
JP Morgan Chase Commercial
Mortgage, 5.26%, 7/12/37 5,000 5,221
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2003-LN1, Class
A2, 4.92%, 10/15/37 9,500 9,723
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2004-LN2, Class
A2, 5.12%, 7/15/41 2,500 2,579
JP Morgan Chase Commercial
Mortgage, Series 2001-CIB3, Class A1,
4.47%, 11/15/35 2,161 2,177
CONTINUED
68
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
JP Morgan Commercial Mortgage
Securities Corp., Series 2002-C3, Class
A2, 4.99%, 7/12/35 $ 5,045 $ 5,207
JP Morgan Mortgage Trust, Series
2004-A6, Class 3A1, 4.90%, 12/25/34 4,754 4,818
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.88%, 1/25/35 3,375 3,391
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A3, 4.88%, 2/25/35 2,400 2,427
JP Morgan Mortgage Trust, Series
2005-A1, Class 4A1, 4.79%, 2/25/35 3,625 3,618
JP Morgan RV Marine Trust, Series
2004-1A, Class A1, 3.12%, 4/15/11 2,171 2,162
Key Bank N.A., 5.80%, 7/1/14 2,000 2,136
Kinder Morgan Energy Partners, 5.00%,
12/15/13 1,500 1,508
Korea Electric Power, 4.25%, 9/12/07 1,000 1,006
Kroger Co., 5.50%, 2/1/13 1,425 1,499
Lehman Brothers Holdings, 8.25%, 6/15/07 3,600 3,969
Lehman Brothers TRAINS, 6.50%, 8/15/08 (d)(e) 14,772 15,421
Lehman Brothers, Inc., 6.63%, 2/15/08 3,850 4,134
Marshall & Ilsley Bank, 3.80%, 2/8/08 2,360 2,357
MBNA Master Credit Card Trust,
7.80%, 10/15/12 3,000 3,523
Mellon Financial Corp., 7.38%, 5/15/07 5,000 5,375
Merrill Lynch & Co., 5.36%, 2/1/07 2,000 2,069
Merrill Lynch & Co., 5.45%, 7/15/14 1,500 1,566
Merrill Lynch Mortgage Investors, Inc.,
Series 2005-A1, Class 2A1, 4.67%, 12/25/34 2,375 2,385
Miller Brewing Co., 5.50%, 8/15/13 (e) 1,000 1,049
Monsanto Co., 7.38%, 8/15/12 1,000 1,177
Morgan Stanley, 4.75%, 4/1/14 (g) 3,500 3,445
Morgan Stanley Capital I, Series
2004-IQ7, Class A2, 5.02%, 6/15/38 3,000 3,101
National City Bank, 4.25%, 1/29/10 2,375 2,376
Nationslink Funding Corp., Series
1998-2, Class A2, 6.48%, 8/20/30 5,500 5,902
Navistar Financial Corp. Owner Trust,
Series 2004-B, Class A4, 3.53%, 10/15/12 5,405 5,340
NCNB Corp., 9.38%, 9/15/09 5,000 6,052
Nisource Finance Corp., 3.20%, 11/1/06 (g) 1,000 987
Nomura Asset Acceptance Corp., Series
2004-AR4, Class 1A2, 4.93%, 12/25/34 2,015 2,031
Pemex Project Funding Master Trust,
7.38%, 12/15/14 (g) 2,000 2,235
Pepco Holdings, Inc., 6.45%, 8/15/12 1,000 1,108
PHH Corp., 7.13%, 3/1/13 (g) 1,000 1,125
PNC Mortgage Acceptance Corp.,
7.33%, 12/10/32 5,000 5,632
PPG Industries, Inc., 6.50%, 11/1/07 2,000 2,136
PPL Electric Utilities, 5.88%, 8/15/07 2,000 2,094
Providian Gateway Master Trust, Series
2004-DA, Class B, 3.55%, 9/15/11 1,825 1,802
Prudential Securities Secured Financing,
6.48%, 11/1/31 7,000 7,539
PSEG Power, 5.00%, 4/1/14 1,500 1,502
Public Service Co. of Colorado, 4.38%, 10/1/08 3,500 3,539
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
Regions Financial Corp., 7.00%, 3/1/11 $ 1,275 $ 1,454
Residential Accredit Loans, Inc., Series
2002-QS19, Class A8, 6.00%, 12/25/32 2,274 2,315
Residential Asset Mortgage Products,
Inc., Series 2004-RS12, Class AI5,
5.42%, 12/25/34 4,530 4,530
Safeway, Inc., 5.63%, 8/15/14 (g) 1,500 1,553
Salomon Smith Barney, 7.13%, 10/1/06 5,000 5,292
Sempra Energy, 2.81%, 5/21/08 (d) 5,000 4,995
SLM Corp., 3.63%, 3/17/08 1,500 1,486
SLM Corp., 5.38%, 5/15/14 1,000 1,041
Southwestern Bell Telephone, Co.,
6.63%, 9/1/24 1,725 1,762
State Street Institutional, 7.94%, 12/30/26 1,000 1,108
Sunoco, Inc., 4.88%, 10/15/14 1,500 1,494
Tampa Electric, 5.38%, 8/15/07 2,000 2,070
U.S. Bank, N.A., 3.75%, 2/6/09 3,000 2,962
Union Planters Corp., 5.13%, 6/15/07 2,000 2,068
UPFC Auto Receivables Trust, Series
2004-A, Class A3, 3.27%, 9/15/10 1,975 1,961
Valero Energy Corp., 6.88%, 4/15/12 (g) 3,500 3,972
Vanderbilt Acquisition Loan Trust,
Series 2002-1, Class A4, 6.57%, 5/7/27 2,555 2,713
Verizon Florida, Inc., 6.13%, 1/15/13 2,000 2,132
Viacom, Inc., 7.75%, 6/1/05 5,000 5,074
Washington Mutual, Inc., 8.25%, 4/1/10 (g) 7,000 8,152
Wells Fargo & Co., 6.38%, 8/1/11 3,000 3,319
------------
TOTAL CORPORATE BONDS 414,467
------------
FOREIGN BONDS (0.7%)
DaimlerChrysler, 7.30%, 1/15/12 1,745 1,986
Korea Development Bank, 3.88%, 3/2/09 2,500 2,460
------------
TOTAL FOREIGN BONDS 4,446
------------
U.S. GOVERNMENT AGENCIES (27.2%)
FANNIE MAE (5.9%)
5.50%, 5/2/06 (g) 5,000 5,133
2.13%, 10/5/06 2,500 2,449
4.75%, 1/2/07 (g) 4,375 4,467
3.42%, 3/15/07 10,000 9,977
3.67%, 5/8/07 2,370 2,374
3.38%, 5/15/07 2,375 2,366
6.25%, 1/25/08 1,093 1,136
4.92%, 7/25/20 3,195 3,255
5.09%, 7/1/34 3,527 3,585
5.25%, 8/1/34 2,299 2,342
------------
37,084
------------
FEDERAL HOME LOAN BANK (4.9%)
2.50%, 3/15/06 (g) 5,500 5,455
3.50%, 8/15/06 5,500 5,511
3.50%, 5/15/07 5,000 4,995
3.88%, 8/22/08 3,900 3,893
3.88%, 1/15/10 (g) 8,305 8,262
4.84%, 1/25/12 2,400 2,440
------------
30,556
------------
CONTINUED
69
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC (11.2%)
5.25%, 1/15/06 (g) $ 4,000 $ 4,077
7.22%, 6/14/06 3,000 3,159
2.85%, 2/23/07 (g) 15,000 14,804
2.40%, 3/29/07 (g) 2,500 2,444
3.88%, 11/10/08 (g) 10,000 10,008
3.88%, 1/12/09 (g) 8,000 7,905
4.25%, 5/4/09 (g) 6,000 6,013
4.00%, 8/10/09 (g) 10,000 10,003
6.25%, 3/5/12 (g) 8,500 8,851
4.50%, 7/15/19 2,875 2,778
------------
70,042
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (5.2%)
9.50%, 12/15/09 2,013 2,188
4.02%, 12/16/21 4,900 4,900
4.60%, 10/16/24 2,500 2,500
5.25%, 9/16/27 2,675 2,777
4.66%, 4/16/29 4,995 5,022
4.45%, 8/16/32 2,500 2,486
4.81%, 8/16/32 2,450 2,487
5.05%, 11/16/33 5,055 5,166
4.60%, 2/16/43 4,915 4,915
------------
32,441
------------
TOTAL U.S. GOVERNMENT AGENCIES 170,123
------------
U.S. TREASURY OBLIGATIONS (5.3%)
U.S. TREASURY INFLATION PROTECTED
BONDS (1.7%)
3.63%, 1/15/08 2,450 3,121
2.00%, 1/15/14 (g) 7,000 7,486
------------
10,607
------------
U.S. TREASURY NOTES (3.6%)
2.25%, 2/15/07 (g) 12,800 12,542
4.38%, 5/15/07 (g) 10,000 10,230
------------
22,772
------------
TOTAL U.S. TREASURY OBLIGATIONS 33,379
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MONEY MARKETS (0.2%)
Dreyfus Cash Management Money
Market Fund 101 $ --#
Federated Prime Value Obligations
Money Market Fund 1,425,634 1,426
------------
TOTAL MONEY MARKETS 1,426
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (25.5%)
Pool of various securities for
Fifth Third Funds $ 159,814 159,814
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 159,814
------------
TOTAL INVESTMENTS (COST $778,501) + - 125.2% 783,655
LIABILITIES IN EXCESS OF OTHER ASSETS - (25.2)% (157,612)
------------
NET ASSETS - 100.0% $ 626,043
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
70
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS (52.1%)
Abbey National PLC, 6.69%, 10/17/05 $ 4,350 $ 4,445
ABN AMRO, 7.55%, 6/28/06 4,350 4,596
Aesop Funding II LLC, 2.75%, 7/20/07 (e) 4,350 4,311
Alabama Power Co., 2.80%, 12/1/06 1,610 1,587
Alcoa, Inc., 4.25%, 8/15/07 1,760 1,781
American Electric Power Co., 6.13%,
5/15/06 1,825 1,883
American International Group, 2.85%,
12/1/05 4,350 4,341
Australian Gas Light Co., 6.40%, 4/15/08 4,390 4,676
Banc of America Commercial Mortgage,
Inc., Series 2001-PB1, Class A1,
4.91%, 5/11/35 5,523 5,636
Banc of America Commercial Mortgage,
Inc., Series 2004-1, Class A1, 3.16%,
11/10/39 4,035 3,948
Bank of America Mortgage Securities,
4.18%, 7/25/34 (d) 5,028 4,994
Bank of New York, 2.20%, 5/12/06 8,250 8,122
Bank One Issuance Trust, Series
2004-A1, Class A1, 3.45%, 10/17/11 880 864
Basell America Finance, 7.60%, 3/15/07 880 905
Bayerische Landesbank, 6.38%, 10/15/05 8,690 8,897
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32 3,270 3,486
Bear, Stearns Co., Inc., Series
2003-AC7, Class A2, 5.25%, 1/25/34 2,794 2,817
BMW Vehicle Owner Trust, 1.94%, 2/25/07 2,648 2,635
BP Capital PLC, 4.63%, 5/27/05 3,480 3,499
Capital One Auto Finance Trust, 3.44%,
6/15/09 4,350 4,352
Caterpillar Financial Asset Trust,
3.15%, 2/25/08 1,037 1,038
CIT Group, Inc., 7.63%, 8/16/05 2,180 2,234
CIT Group, Inc., 2.73%, 6/19/06 (d) 4,350 4,357
Comcast Cable Communication, 6.38%,
1/30/06 960 987
Compaq Computer, 7.65%, 8/1/05 4,390 4,488
Cooper Cameron Corp., 2.65%, 4/15/07 1,055 1,024
Countrywide Financial, 3.50%, 12/19/05 4,350 4,360
Countrywide Home Loans, 5.13%, 4/20/35 (d) 5,014 5,041
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2, Class
A2, 6.52%, 1/17/35 981 1,005
Credit Suisse First Boston, Inc., 7.75%,
5/15/06 (e) 4,350 4,579
DaimlerChrysler Auto Trust, 2.93%, 6/6/06 260 260
DaimlerChrysler NA Holdings, 6.40%,
5/15/06 2,090 2,165
DLJ Commercial Mortgage Corp., Series
1999-CG1, Class A1A, 6.08%, 3/10/32 2,839 2,934
Duke Energy Field Services, Inc.,
7.50%, 8/16/05 2,300 2,352
FleetBoston Financial Corp., 7.25%, 9/15/05 4,350 4,460
Ford Motor Credit Co., 6.88%, 2/1/06 4,390 4,502
FPL Group Capital, Inc., 1.88%, 3/30/05 2,350 2,346
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
General Motors Acceptance Corp.,
6.75%, 1/15/06 $ 2,180 $ 2,228
General Motors Acceptance Corp.,
3.18%, 5/18/06 (g)(d) 2,200 2,192
General Motors Acceptance Corp.,
6.13%, 2/1/07 1,495 1,519
Green Tree Financial Corp., Series
1998-6, Class A, 6.27%, 6/1/30 2,395 2,445
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A2,
3.84%, 6/10/36 1,760 1,760
Harborview Mortgage Loan Trust, Series
2004-5, Class 2A6, 4.07%, 6/19/34 6,250 6,151
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 2,473 2,454
Hertz Corp., 4.70%, 10/2/06 1,310 1,315
Household Automotive Trust, Series
2002-3, Class A4A, 3.44%, 5/18/09 4,390 4,403
HSBC USA, Inc., 7.00%, 11/1/06 4,354 4,606
IBM, Corp., 3.80%, 2/1/08 4,100 4,116
International Lease Finance Corp.,
3.13%, 5/3/07 4,390 4,325
John Deere Owner Trust, Series 2004-A,
Class A3, 2.32%, 12/17/07 2,340 2,303
JP Morgan Mortgage Trust, Series
2004-A5, Class 4A2, 4.85%, 12/25/34 4,005 4,003
JP Morgan Mortgage Trust, Series
2005-A1, 4.90%, 2/25/35 5,450 5,469
Kerr-McGee Corp., 5.38%, 4/15/05 2,180 2,190
Korea Electric Power, 4.25%, 9/12/07 880 885
Kraft Foods, Inc., 5.25%, 6/1/07 (g) 2,650 2,733
LB-UBS Commercial Mortgage Trust,
Series 2002-C2, Class A1, 3.83%, 6/15/26 4,804 4,822
MBNA America Bank NA, 6.50%, 6/20/06 1,080 1,122
Merrill Lynch & Co., 2.71%, 9/18/06 (d) 6,340 6,348
Merrill Lynch Mortgage Investors, Inc.,
Series 2003-A1, Class 2A, 4.53%, 12/25/32 1,182 1,196
Morgan Stanley Dean Witter, 8.33%, 1/15/07 4,350 4,727
Morgan Stanley Dean Witter Capital I,
3.48%, 9/15/37 3,963 3,938
Morgan Stanley Dean Witter Capital I,
3.92%, 4/14/40 6,200 6,185
National Rural Utilities, 6.00%, 5/15/06 4,500 4,642
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class A4, 3.25%, 10/15/10 4,350 4,289
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class B, 3.79%, 10/15/10 1,592 1,586
Nissan Auto Lease Trust, 3.18%, 6/15/10 900 891
Pemex Finance, Ltd., 9.69%, 8/15/09 836 951
Protective Life US Funding, 3.70%, 11/24/08 2,180 2,170
Safeway, Inc., 2.50%, 11/1/05 2,440 2,424
Sempra Energy, 6.95%, 12/1/05 855 879
Societe Generale - New York, 7.40%, 6/1/06 (g) 2,870 3,001
Sprint Capital Corp., 7.13%, 1/30/06 880 911
St. Paul Companies, Inc., 7.88%, 4/15/05 4,350 4,392
Synovus Financial, 7.25%, 12/15/05 4,308 4,439
Time Warner, Inc., 6.13%, 4/15/06 1,635 1,685
Valero Energy Corp., 3.50%, 4/1/09 880 855
CONTINUED
71
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
CORPORATE BONDS, CONTINUED
Verizon Communications, 7.51%, 4/1/09 $ 4,500 $ 5,052
Volkswagen Auto Loan Enhanced Trust,
1.49%, 5/21/07 6,767 6,704
Volkswagon Auto Lease Trust, 2.75%, 12/20/07 3,480 3,475
Washington Mutual Bank, 4.82%, 10/25/32 1,406 1,406
Washington Mutual Bank, Series
2003-AR10, Class A4, 4.08%, 10/25/33 4,390 4,343
Westdeutsche Landesbank, 6.75%, 6/15/05 4,350 4,412
Weyerhaeuser Co., 5.50%, 3/15/05 317 318
------------
TOTAL CORPORATE BONDS 268,167
------------
FOREIGN BONDS (0.6%)
British Telecom PLC, 7.63%, 12/15/05 895 929
Deutsche Telekom International Finance,
8.25%, 6/15/05 1,220 1,243
Telecom Italia Capital, 4.00%, 11/15/08 880 873
------------
TOTAL FOREIGN BONDS 3,045
------------
MUNICIPAL BONDS (0.2%)
OHIO (0.2%)
State Economic Development Revenue,
Ohio Enterprise, Series 3, 4.05%, 3/1/11 (e) 1,220 1,201
------------
TOTAL MUNICIPAL BONDS 1,201
------------
U.S. GOVERNMENT AGENCIES (32.3%)
FANNIE MAE (2.3%)
3.13%, 7/15/06 (g) 6,580 6,561
2.63%, 11/15/06 (g) 5,360 5,286
------------
11,847
------------
FEDERAL HOME LOAN BANK (12.9%)
1.65%, 1/27/06 (d) 4,880 4,854
5.13%, 3/6/06 (g) 8,770 8,946
2.25%, 5/15/06 (g) 7,310 7,215
1.88%, 6/15/06 (g) 10,860 10,652
2.88%, 8/15/06 (g) 11,125 11,050
2.38%, 10/2/06 (g) 6,080 5,980
3.38%, 9/14/07 5,000 4,974
2.25%, 7/25/08 5,910 5,625
4.00%, 10/27/08 7,170 7,170
------------
66,466
------------
FREDDIE MAC (13.5%)
5.25%, 1/15/06 (g) 9,020 9,194
5.00%, 2/1/07 850 866
2.85%, 2/23/07 (g) 8,770 8,656
4.88%, 3/15/07 (g) 16,570 17,046
2.40%, 3/29/07 (g) 8,770 8,573
2.88%, 5/15/07 (g) 8,770 8,648
4.50%, 12/15/07 369 368
3.50%, 12/15/10 6,926 6,926
4.00%, 11/15/15 8,690 8,714
------------
68,991
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (3.3%)
2.87%, 2/16/20 $ 7,562 $ 7,395
3.27%, 1/16/23 3,406 3,331
3.72%, 12/16/26 3,983 3,932
4.50%, 3/20/33 2,529 2,537
------------
17,195
------------
3.13%, 12/15/07 (g) 1,650 1,626
------------
TOTAL U.S. GOVERNMENT AGENCIES 166,125
------------
U.S. TREASURY OBLIGATIONS (12.0%)
U.S. TREASURY NOTES (12.0%)
1.88%, 1/31/06 (g) 16,570 16,395
2.00%, 5/15/06 (g) 9,750 9,621
2.75%, 6/30/06 (g) 7,020 6,985
2.38%, 8/15/06 (g) 8,530 8,430
2.38%, 8/31/06 (g) 9,750 9,631
2.50%, 10/31/06 (g) 5,000 4,939
2.25%, 2/15/07 (g) 4,750 4,654
3.13%, 5/15/07 (g) 1,350 1,345
------------
62,000
------------
TOTAL U.S. TREASURY OBLIGATIONS 62,000
------------
MONEY MARKETS (2.1%)
Dreyfus Cash Management Money
Market Fund 904 1
Federated Prime Value Obligations
Money Market Fund 10,869,348 10,869
------------
TOTAL MONEY MARKETS 10,870
------------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (36.2%)
Pool of various securities for
Fifth Third Funds $ 186,483 186,483
------------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 186,483
------------
TOTAL INVESTMENTS (COST $702,328) + - 135.5% 697,891
LIABILITIES IN EXCESS OF OTHER ASSETS - (35.5)% (182,818)
------------
NET ASSETS - 100.0% $ 515,073
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
72
U.S. GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT AGENCIES (84.9%)
FANNIE MAE (37.2%)
2.00%, 1/15/06 $ 2,700 $ 2,670
5.50%, 5/2/06 1,000 1,027
5.25%, 6/15/06 1,500 1,539
6.25%, 1/25/08 2,241 2,352
4.00%, 9/2/08 1,000 1,000
4.00%, 12/15/08 2,000 1,995
6.38%, 6/15/09 1,100 1,207
6.63%, 9/15/09 1,000 1,111
5.13%, 1/2/14 2,000 2,061
4.25%, 10/25/16 729 728
5.00%, 7/1/18 TBA 2,000 2,033
4.00%, 12/25/20 3,000 3,013
4.31%, 1/1/35 2,222 2,231
2.78%, 8/25/44 (d) 1,967 1,967
------------
24,934
------------
FEDERAL FARM CREDIT BANK (1.6%)
6.60%, 7/7/06 1,000 1,046
------------
FEDERAL HOME LOAN BANK (12.8%)
2.23%, 2/7/05 ** 2,000 1,999
2.50%, 3/15/06 3,150 3,124
6.09%, 6/2/06 1,500 1,554
4.06%, 8/25/09 925 921
4.84%, 1/25/12 1,000 1,017
------------
8,615
------------
FREDDIE MAC (22.0%)
2.21%, 2/1/05 ** 2,000 2,000
5.25%, 1/15/06 3,075 3,134
2.75%, 3/15/08 1,450 1,411
6.88%, 9/15/10 2,000 2,276
5.88%, 3/21/11 1,000 1,079
4.75%, 10/11/12 2,000 2,000
4.50%, 11/15/12 1,000 1,014
4.00%, 12/15/21 880 881
5.00%, 12/15/32 1,021 979
------------
14,774
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (9.6%)
3.59%, 11/16/17 492 487
3.27%, 1/16/23 943 923
4.50%, 12/16/25 2,000 2,018
5.50%, 2/20/31 2,000 2,037
5.50%, 12/20/32 1,000 1,006
------------
6,471
------------
TENNESSEE VALLEY AUTHORITY (1.7%)
6.79%, 5/23/12 1,000 1,158
------------
TOTAL U.S. GOVERNMENT AGENCIES 56,998
------------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
U.S. TREASURY OBLIGATIONS (17.5%)
U.S. TREASURY INFLATION PROTECTED
BONDS (1.9%)
3.88%, 1/15/09 $ 1,000 $ 1,291
------------
U.S. TREASURY NOTES (15.6%)
2.00%, 5/15/06 1,000 987
5.50%, 2/15/08 800 847
5.63%, 5/15/08 1,000 1,066
3.13%, 10/15/08 1,000 986
3.59%, 4/5/09 ** 2,000 1,703
5.00%, 8/15/11 1,000 1,064
4.21%, 12/6/11 ** 2,000 1,495
4.75%, 5/15/14 1,000 1,048
4.81%, 6/6/15 ** 2,000 1,244
------------
10,440
------------
TOTAL U.S. TREASURY OBLIGATIONS 11,731
------------
MONEY MARKETS (3.3%)
Dreyfus Government Cash Management
Money Market Fund 100 --#
Federated Government Obligations
Money Market Fund 2,193,728 2,194
------------
TOTAL MONEY MARKETS 2,194
------------
TOTAL INVESTMENTS (COST $70,742) + - 105.7% 70,923
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.7)% (3,832)
------------
NET ASSETS - 100.0% $ 67,091
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
73
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (102.5%)
ARIZONA (2.1%)
Greater Arizona Development Authority,
6.00%, 8/1/13, (Callable 8/1/08 @ 102) $ 1,070 $ 1,196
CALIFORNIA (9.5%)
Cal Poly Pomona Foundation, Inc.,
5.50%, 2/1/20, (Callable 2/1/11 @ 101) 265 300
La Canada University School District,
Series A, GO, 5.38%, 8/1/24, (Callable
8/1/14 @100) 1,000 1,123
Placentia -Yorba Linda Union School
District, Series B, GO, 5.38%, 8/1/22,
(Callable 8/1/14 @100) 1,000 1,119
Sacramento County Sanitation Financing
Authority, 6.00%, 12/1/15, (Callable
12/1/10 @ 101) 250 285
San Francisco City and County Airport,
(AMT), 5.35%, 5/1/10, (Callable 5/1/06
@ 102) 2,445 2,585
------------
5,412
------------
COLORADO (10.4%)
Boulder Sales and Use Tax, Series A,
6.00%, 12/15/18, (Callable 12/15/09
@ 101) 2,265 2,605
Denver City & County Airport Revenue,
5.00%, 11/15/08 1,020 1,094
Douglas County School District No.1,
GO, 5.75%, 12/15/21, (Callable 12/15/14
@100) 1,000 1,165
E-470 Public Highway Authority
Revenue, Series C, 6.00%, 9/1/07 1,000 1,086
------------
5,950
------------
FLORIDA (6.9%)
Board of Education, Series D, 5.75%,
6/1/19, (Callable 6/1/10 @ 101) 2,000 2,264
Tampa Utility Tax & Special Revenue,
5.25%, 10/1/20, (Callable 10/1/12 @101) 1,505 1,662
------------
3,926
------------
ILLINOIS (11.2%)
Chicago Metropolitan Water
Reclamation District-Greater Chicago,
Capital Improvements, GO, 7.25%,
12/1/12 500 636
Chicago Single Family Mortgage
Revenue, Series A, (AMT), 4.70%,
10/1/17, (Callable 4/1/09 @ 102) 315 316
Development Finance Authority, 6.38%,
1/1/17, (Callable 1/1/11 @ 100) 1,700 1,992
Development Finance Authority, 6.38%,
1/1/18, (Callable 1/1/11 @ 100) 1,700 1,996
State GO, 5.88%, 10/1/17, (Callable
1/1/09 @ 100) 300 340
State Sales Tax Revenue, 5.00%, 6/15/08 1,000 1,074
------------
6,354
------------
IOWA (4.3%)
Finance Authority, Private College
Revenue, Drake University Project,
6.50%, 12/1/11 2,055 2,463
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
KANSAS (1.9%)
Sedgwick & Shawnee Counties, Single
Family Revenue, Series A, (AMT),
3.00%, 12/1/27 $ 1,000 $ 1,079
------------
MICHIGAN (11.9%)
Frankenmuth School District, 5.75%,
5/1/20, (Callable 5/1/10 @ 100) 650 739
Higher Education Student Loan
Authority Revenue, Series XII-W (AMT),
4.75%, 3/1/09 1,000 1,069
Kent Spectrum Health, Series A, 5.50%,
1/15/13, (Callable 7/15/11 @101) 2,125 2,339
State Hospital Financial Authority
Revenue, Crittenton Hospital, Series A,
1.92%, 3/1/14 1,500 1,500
Strategic Fund, Hope Network Project,
Series B, 5.13%, 9/1/13, (Callable 9/1/08
@ 102) 1,000 1,072
------------
6,719
------------
MINNESOTA (7.9%)
Becker Independent School District No.
726, 6.00%, 2/1/21, (Callable 2/1/10
@ 100) 1,000 1,133
Rochester Independent School District
No.535, 5.88%, 2/1/20, (Callable 2/1/10
@ 100) 2,150 2,431
State Housing Finance Agency, 3.40%,
7/1/12 1,000 961
------------
4,525
------------
MISSOURI (4.8%)
Greene County School District, 6.20%,
3/1/18, (Callable 3/1/10 @ 100) 2,400 2,727
------------
NEBRASKA (3.0%)
Omaha Series A, GO, 6.50%, 12/1/13 1,365 1,693
------------
NEW MEXICO (1.9%)
Mortgage Financial Authority, Single
Family Mortgage, (AMT), 3.50%,
7/1/36 1,000 1,073
------------
NEW YORK (7.1%)
Environmental Facilities Corp., Solid
Waste Disposition Revenue, Series A,
2.90%, 5/1/12 500 497
New York City Transitional Financial
Authority, 5.75%, 11/15/16, (Callable
5/15/10 @ 101) 2,200 2,489
Thruway Authority, Series 1997 B,
6.00%, 4/1/07 1,000 1,071
------------
4,057
------------
OKLAHOMA (1.9%)
Tulsa International Airport (AMT),
5.50%, 6/1/10 1,000 1,094
------------
CONTINUED
74
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OREGON (1.9%)
Sunrise Water Authority Revenue,
5.25%, 3/1/24, (Callable 3/1/14 @ 100) $ 1,000 $ 1,106
------------
PENNSYLVANIA (0.9%)
Higher Educational Facilities Authority
Revenue, Health System, Series A,
5.00%, 8/15/07 500 524
------------
PUERTO RICO (2.0%)
Public Building Authority Revenue,
Series I, 5.50%, 7/1/23, (Callable 7/1/14
@ 100) 1,000 1,113
------------
TENNESSEE (2.2%)
Housing Development Agency,
Mortgage Finance, Series C, (AMT),
5.95%, 7/1/09, (Callable 7/1/05 @ 102) 1,225 1,258
------------
TEXAS (10.7%)
Clint Independent School District,
6.00%, 2/15/15, (Callable 2/15/11 @ 100) 1,615 1,862
Dallas-Fort Worth International Airport,
6.00%, 11/1/28, (Callable 11/1/09 @ 100) 3,000 3,294
Travis County GO, 5.75%, 3/1/17,
(Callable 3/1/10 @100) 815 926
------------
6,082
------------
TOTAL MUNICIPAL BONDS 58,351
------------
MONEY MARKETS (0.9%)
AIM Tax Free Money Market Fund 100 --#
Dreyfus Tax Exempt Money Market Fund 532,666 533
Merrill Lynch Institutional Tax
Exempt Fund 5,000 5
------------
TOTAL MONEY MARKETS 538
------------
TOTAL INVESTMENTS (COST $54,014) + - 103.4% 58,889
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.4)% (1,940)
------------
NET ASSETS - 100.0% $ 56,949
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (100.0%)
ALABAMA (3.4%)
Auburn University, General Fee
Revenue, 5.25%, 6/1/17 $ 2,020 $ 2,276
Mobile County, Refunding &
Improvements Warrants, 5.25%, 8/1/17,
(Callable 8/1/14 @ 100) 3,080 3,479
Public School & College Authority
Revenue, 5.25%, 8/1/06 2,050 2,137
------------
7,892
------------
ALASKA (0.3%)
State Housing Finance Corp., Housing
Development, Series A (AMT), 2.35%,
12/1/07 745 733
------------
ARIZONA (10.5%)
Glendale Water & Sewer Revenue,
5.00%, 7/1/06 1,290 1,337
Glendale Water & Sewer Revenue,
5.00%, 7/1/07 1,040 1,100
Highway Transportation Board Revenue,
Series A, 5.00%, 7/1/10 4,680 5,155
Mesa Street & Highway Revenue,
6.25%, 7/1/12 1,000 1,193
Mesa Street & Highway Revenue,
6.25%, 7/1/13, (Prerefunded 7/1/11 @
100) 1,000 1,182
Mesa Street & Highway Revenue,
5.00%, 7/1/14, (Prerefunded 7/1/11 @
100) 1,000 1,110
Phoenix Civic Improvement Corp.
Excise Tax Revenue, 5.00%, 7/1/11 1,405 1,553
Pima County Community College
District Revenue, 5.00%, 7/1/07 670 709
Pima County University School District,
No. 012 Sunnyside, GO, 5.75%, 7/1/12,
(Prerefunded 7/1/09 @ 100) 1,050 1,180
Pima County, Improvement, GO,
5.00%, 7/1/06 2,000 2,073
Salt River Project, Agriculture
Improvement & Power District, Electric
Systems Revenue, Series A, ETM,
5.63%, 1/1/06 2,315 2,386
Tempe Performing Arts Center, Excise
Tax Revenue, 5.25%, 7/1/17, (Callable
7/1/14 @ 100) 2,420 2,718
Tucson Street & Highway, User
Revenue, Junior Lien, Series 1994-E,
6.75%, 7/1/13 2,000 2,483
------------
24,179
------------
CALIFORNIA (2.7%)
La Canada Unified School District,
Election 2004, Series A, GO, 5.38%,
8/1/21, (Callable 8/1/14 @ 100) 1,400 1,574
La Canada University School District,
Series A, GO, 5.50%, 8/1/24, (Callable
8/1/14 @100) 375 421
CONTINUED
75
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA, CONTINUED
Orange County, Series A, Refunding
Recovery, 6.00%, 6/1/10 $ 3,000 $ 3,478
Placentia -Yorba Linda Union School
District, Series B, GO, 5.38%, 8/1/22,
(Callable 8/1/14 @100) 775 868
------------
6,341
------------
COLORADO (8.1%)
Denver City & County Airport Revenue,
Series A, (AMT), 5.25%, 11/15/06 2,500 2,608
Denver City & County Airport Revenue,
Series B, (AMT), 5.50%, 11/15/07 1,000 1,072
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/06 1,000 1,044
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/07 2,655 2,812
Douglas County School District No.1,
GO, 5.75%, 12/15/21, (Callable 12/15/14
@100) 1,500 1,747
El Paso County School District No.
038, GO, 6.38%, 12/1/16, (Prerefunded
12/1/10 @ 100) 1,150 1,356
El Paso County School District No.
038, GO, 6.38%, 12/1/18, (Prerefunded
12/1/10 @ 100) 1,005 1,185
Housing & Finance Authority, Single
Family Program, Series C-3, 4.70%,
10/1/22, (Callable 10/1/09 @ 102) 5 5
Larimer County School District No. R1,
GO, 5.50%, 12/15/09 2,000 2,235
Larmier County School District No. R1,
GO, 5.75%, 12/15/16, (Callable 12/15/13
@ 100) 1,800 2,120
Regional Transportation District, 2.30%,
12/1/22 1,000 992
Summitt County School District No.
RE1, GO, 5.75%, 12/1/12, (Callable
12/1/11 @ 100) 1,465 1,693
------------
18,869
------------
CONNECTICUT (0.7%)
New Haven, Series B, GO, 5.75%, 11/1/09 1,500 1,695
------------
DISTRICT OF COLUMBIA (2.3%)
Metropolitan Airport Authority System,
Refunding, Series C (AMT), 5.00%,
10/1/06 1,000 1,040
Metropolitan Washington D. C.
Airports, Series B, (AMT), 5.50%,
10/1/05 4,175 4,264
------------
5,304
------------
FLORIDA (0.9%)
Lakeland Electric & Water Revenue,
ETM, 5.90%, 10/1/07 2,000 2,178
------------
HAWAII (1.4%)
Airport Systems Revenue, Series B
(AMT), 8.00%, 7/1/10 2,000 2,432
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
HAWAII, CONTINUED
Highway Revenue, 5.50%, 7/1/10 $ 765 $ 859
------------
3,291
------------
ILLINOIS (4.4%)
Chicago Metropolitan Water
Reclamation District, Capital
Improvement, ETM, GO, 5.50%,
12/1/10 3,000 3,398
Chicago Metropolitan Water
Reclamation District, Series B, GO,
5.00%, 12/1/05 1,000 1,023
Development Financial Authority
Revenue, DePaul University, Series C,
5.00%, 10/1/06 125 129
Development Financial Authority
Revenue, DePaul University, Series C,
5.00%, 10/1/07 200 210
Development Financial Authority
Revenue, Elmhurst Community School,
6.38%, 1/1/15, (Callable 1/1/11 @ 100) 1,300 1,531
Development Financial Authority
Revenue, Elmhurst Community School,
6.38%, 1/1/16, (Callable 1/1/11 @ 100) 1,470 1,727
Financial Authority Gas Supply
Revenue, Peoples Gas Light & Coke Co.,
4.30%, 6/1/35 1,000 1,011
State, GO, 5.25%, 2/1/09 1,000 1,092
------------
10,121
------------
INDIANA (5.1%)
Fort Wayne International Airport
Building Corp. Revenue, (AMT), 5.00%,
7/1/12 1,615 1,722
Fort Wayne International Airport
Building Corp. Revenue, (AMT), 5.00%,
7/1/13 1,695 1,805
Michigan City Independent School
Building Corp., 5.00%, 7/5/09 1,400 1,522
Municipal Power Supply Agency
System Revenue, Series B, 5.88%,
1/1/10 2,000 2,263
Municipal Power Supply Agency
System Revenue, Series B, 6.00%,
1/1/13 3,000 3,521
Tippecanoe County Independent
Elementary School Building Corp.,
5.10%, 7/15/06 1,000 1,039
------------
11,872
------------
IOWA (0.1%)
Iowa State University, Science &
Technology Revenue, 3.75%, 7/1/10 140 144
------------
MAINE (0.9%)
Housing Authority Management
Provider, Series F-2 (AMT), 2.55%,
11/15/05 2,190 2,188
------------
CONTINUED
76
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MASSACHUSETTS (0.7%)
State Development Finance Agency
Revenue, Chelsea Homes, (AMT), 2.90%,
12/15/06 $ 1,525 $ 1,519
------------
MICHIGAN (19.9%)
Battle Creek Downtown Development
Authority, 6.00%, 5/1/07 2,215 2,388
Building Authority Revenue, Police
Communications, 5.50%, 10/1/12 350 402
Certificate of Participation, Series A,
5.00%, 9/1/31 2,000 2,197
Comprehensive Transportation, 5.50%,
5/15/11 950 1,078
Detroit, GO, (AMT), 5.50%, 4/1/08 1,195 1,292
Grand Rapids & Kent County Joint
Building Authority, GO, 5.50%,
10/1/08 565 619
Grand Rapids Water Supply, 5.00%, 1/1/08 1,000 1,068
Higher Education Facilities Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/07 765 816
Higher Education Facilities Authority
Revenue, Hope College Project, 4.50%,
10/1/07 250 260
Higher Education Facilities Authority
Revenue, Hope College Project, 4.80%,
10/1/10, (Callable 10/1/09 @ 100) 590 613
Higher Education Facilities Authority,
Hope College Project, 4.70%, 10/1/09 200 210
Higher Education Student Loan
Authority Revenue, Series XII-Q, (AMT),
5.05%, 9/1/08 3,885 4,098
Higher Education Student Loan
Authority Revenue, Series XII-W (AMT),
4.60%, 9/1/08 1,000 1,057
Higher Education Student Loan
Authority Revenue, Series XII-W (AMT),
4.75%, 3/1/09 1,800 1,924
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 5.20%, 9/1/08 4,225 4,500
Higher Education Student Loan
Authority Revenue, Series XVII-I,
(AMT), 3.95%, 3/1/11 1,000 1,014
Hospital Finance Authority, 4.35%, 3/1/09 500 516
Hospital Financial Authority Revenue,
Edward W. Sparrow Group, 5.25%,
11/15/08 1,125 1,207
Hospital Financial Authority Revenue,
Edward W. Sparrow Hospital, 5.25%,
11/15/09 1,165 1,256
Hospital Financial Authority Revenue,
Holland Community Hospital, Series A,
5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505 544
Kalamazoo Hospital Finance Authority,
Refunding & Improvement, Bronson
Methodist Hospital, 5.35%, 5/15/06 2,000 2,071
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 $ 1,150
Montague Public School District, GO,
5.50%, 5/1/12, (Callable 11/1/11 @
100) 1,005 1,137
Muskegon Water System, Series A,
5.25%, 11/1/09 340 376
Strategic Fund, Limited Obligation
Revenue, Consumers Energy Company
Project, 3.38%, 6/15/10 2,000 2,019
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 1,417
Strategic Fund, Limited Obligation
Revenue, International Project, 4.75%,
8/1/11 2,240 2,379
Strategic Fund, Limited Obligation
Revenue, International Project, 5.00%,
8/1/13 820 885
Strategic Fund, Limited Obligation
Revenue, Solid Waste Disposal, 3.15%,
12/1/13 1,000 1,000
Trunk Line Fund, 3.00%, 9/1/09 150 151
Trunk Line, Series A, 5.25%, 11/1/13 600 681
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 4,130 4,479
------------
45,862
------------
MINNESOTA (2.1%)
Elk River, Independent School District
No. 728, Series C, 4.00%, 2/1/17 2,985 3,028
Housing Finance Agency, 4.55%,
7/1/12, (Callable 7/1/11 @ 100) 1,450 1,478
State Housing Finance Agency, 3.40%,
7/1/12 385 370
------------
4,876
------------
MISSISSIPPI (0.2%)
Series A, GO, 5.25%, 12/1/07 500 537
------------
MISSOURI (3.0%)
Clay County Public School District No.
53, Liberty Direct Deposit Program, GO,
6.25%, 3/1/17, (Callable 3/1/10 @ 100) 2,000 2,276
Health & Education Facilities Authority
Revenue, Lake of the Ozarks General
Hospital, 6.50%, 2/15/21, (Prerefunded
2/15/06 @ 102) 335 356
State Regal Convention & Sports
Complex Authority, 5.25%, 8/15/12 3,880 4,376
------------
7,008
------------
NEBRASKA (0.5%)
Investment Financial Authority, Single
Family Housing Revenue, Series D,
(AMT), 4.10%, 9/1/10 430 433
CONTINUED
77
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
NEBRASKA, CONTINUED
Investment Financial Authority, Single
Family Housing Revenue, Series D,
(AMT), 4.25%, 9/1/11 $ 610 $ 617
------------
1,050
------------
NEVADA (1.6%)
Clark County, GO, 5.00%, 11/1/16 3,090 3,405
Douglas County, Solid Waste Disposal,
3.00%, 12/1/06 100 101
Douglas County, Solid Waste Disposal,
3.00%, 12/1/07 100 101
Douglas County, Solid Waste Disposal,
3.50%, 12/1/08 100 102
Douglas County, Solid Waste Disposal,
3.75%, 12/1/09 100 103
------------
3,812
------------
NEW JERSEY (2.4%)
Ocean County Utilities Authority,
Wastewater, Refunding, 6.00%, 1/1/07 2,500 2,669
Turnpike Authority Revenue, Series A,
6.00%, 1/1/13 2,500 2,953
------------
5,622
------------
NEW MEXICO (1.2%)
Gallup Joint Utilities Revenue, 4.00%, 6/1/14 1,055 1,092
Mortgage Financial Authority, Single
Family Mortgage, (AMT), 3.50%,
7/1/36 1,000 1,073
Taos County Gross Receipts Tax
Revenue, County Educational
Improvements, 3.88%, 10/1/11 565 550
------------
2,715
------------
NEW YORK (1.3%)
Environmental Facilities Corp., Solid
Waste Disposition Revenue, Series A,
2.90%, 5/1/12 2,000 1,989
Metropolitan Transportation Authority,
Series M, 5.50%, 7/1/08 1,030 1,128
------------
3,117
------------
OHIO (1.0%)
Gateway Economic Development Corp.,
Greater Cleveland Excise Tax Revenue,
Senior Lien, (AMT), 5.13%, 9/1/05 1,000 1,017
Housing Financial Agency Management
Revenue, Series A-1, (AMT), 5.35%,
9/1/05 285 289
State Higher Education Facility
Revenue, John Carroll University, 4.00%,
11/15/09 500 517
Summit County, GO, 6.00%, 12/1/09 400 455
------------
2,278
------------
OREGON (2.0%)
Department of Transportation, Highway
User Tax Revenue, 5.00%, 11/15/05 1,045 1,068
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 2,332
------------
4,551
------------
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
PENNSYLVANIA (3.3%)
Chartiers Valley Joint School, ETM,
6.15%, 3/1/07, (Callable 9/24/04 @ 100) $ 4,110 $ 4,425
Clarion County, Industrial Development
Authority, Water Facilities Revenue,
(AMT), 3.60%, 12/1/32 2,000 2,019
Housing Finance Agency, 4.50%,
10/1/09 1,195 1,213
------------
7,657
------------
PUERTO RICO (4.0%)
Commonwealth, Refunding Series A,
5.00%, 7/1/30 2,000 2,152
Public Building Authority Revenue,
Series I, 5.50%, 7/1/23, (Callable 7/1/14
@ 100) 2,000 2,227
Public Buildings Authority Revenue,
Refunding, Government Facilities, Series
K, 4.50%, 7/1/22 2,000 2,078
Public Finance Corp., Commonwealth
Appropriations, Series A, 5.75%, 8/1/27 2,500 2,812
------------
9,269
------------
RHODE ISLAND (1.3%)
Depositors Economic Protection Corp.,
Series A, ETM, 5.88%, 8/1/11 2,535 2,942
------------
SOUTH CAROLINA (0.4%)
Anderson County School District No.
002, Series B, GO, 6.00%, 3/1/13,
(Callable 3/1/10 @ 101) 890 1,024
------------
TENNESSEE (2.9%)
Housing Development Agency, Series A,
4.00%, 7/1/10 1,100 1,102
Metropolitan Nashville Airport
Authority Revenue, (AMT), 5.38%,
7/1/14, (Callable 7/1/08 @ 102) 2,570 2,755
Shelby County, Health Educational &
Housing Facilities Board, Revenue,
5.00%, 9/1/24 (e) 1,795 1,903
Shelby County, Health Educational &
Housing Facilities Board, Revenue R,
4.00%, 9/1/06 (e) 1,000 1,019
------------
6,779
------------
TEXAS (3.3%)
Cypress-Fairbanks Independent School
District, 5.00%, 2/15/22 1,500 1,634
Dallas Waterworks & Sewer Systems
Revenue, 5.25%, 10/1/09 1,000 1,100
Hidalgo County Health Services,
Mission Hospital, Inc. Project, 4.00%,
8/15/06 250 252
Houston Airport System Revenue, Series
A, (AMT), 5.00%, 7/1/05 1,900 1,922
Huffman Independent School District,
GO, 7.00%, 2/15/06 100 105
Huffman Independent School District,
GO, 7.00%, 2/15/07 160 174
CONTINUED
78
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
TEXAS, CONTINUED
Municipal Power Agency Revenue,
4.00%, 9/1/12 $ 500 $ 508
Saginaw Industrial Development
Authority, Glad Investing Project,
(AMT), 2.00%, 2/1/10 (d) 280 280
Series A, GO, 6.00%, 10/1/08 1,600 1,784
------------
7,759
------------
UTAH (0.7%)
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, (AMT),
2.00%, 7/1/06 680 667
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, (AMT),
2.35%, 7/1/07 880 867
------------
1,534
------------
VIRGINIA (1.0%)
Richmond, GO, 5.38%, 7/15/13,
(Callable 7/15/11 @ 101) 2,000 2,254
------------
WASHINGTON (6.4%)
Energy Northwest, Electric Revenue,
Columbia General Station, Series F,
5.25%, 7/1/16 4,040 4,476
Grant County Public Utility District No.
002, Electric Revenue, 5.00%, 1/1/11 2,485 2,728
King County School District No. 401,
Highline Public Schools, GO, 5.13%,
12/1/20, (Callable 6/1/12 @ 100) 2,590 2,792
King County School District No. 415,
Kent, Series A, GO, 5.55%, 12/1/11 2,000 2,269
Motor Vehicle Fuel Tax, R-92D, 6.25%,
9/1/07 1,000 1,091
Port Tacoma, Series A, GO, (AMT),
4.90%, 12/1/07 1,010 1,068
Yakima County, GO, 5.25%, 12/1/16,
(Callable 12/1/12 @ 100) 425 468
------------
14,892
------------
TOTAL MUNICIPAL BONDS 231,864
------------
CONTINUED
SHARES VALUE
------------ ------------
MONEY MARKETS (0.4%)
AIM Tax Free Money Market Fund 100 $ --#
Dreyfus Tax Exempt Money
Market Fund 867,358 867
Merrill Lynch Institutional Tax
Exempt Fund 5,000 5
------------
TOTAL MONEY MARKETS 872
------------
TOTAL INVESTMENTS (COST $221,337) + - 100.4% 232,736
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.4)% (835)
------------
NET ASSETS - 100.0% $ 231,901
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
79
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (98.8%)
OHIO (96.3%)
Akron, GO, 5.50%, 12/1/07 $ 2,000 $ 2,162
American Municipal Power - Ohio, Inc.,
5.25%, 1/1/11 1,825 2,033
Beavercreek Local School District,
6.60%, 12/1/15 1,500 1,884
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 2,642
Butler County Hospital Facilities
Revenue, 4.75%, 11/15/18, (Callable
11/15/08 @ 101) 2,000 1,980
Butler County Transportation
Improvement District, Series A, 6.00%,
4/1/12, (Callable 4/1/08 @ 102) 2,000 2,220
Cincinnati City School District,
Classroom Facilities Construction &
Improvements, 5.25%, 12/1/14, (Callable
12/1/13 @ 100) 3,000 3,395
Cleveland Public Power System
Revenue, 5.25%, 11/15/16, (Callable
11/15/06 @ 102) 4,900 5,220
Cleveland Stadium Project, 5.25%,
11/15/11, (Callable 11/15/07 @ 102) 4,110 4,463
Cleveland, GO, 5.25%, 12/1/17 1,395 1,571
Cleveland, Non Tax Revenue, Cleveland
Stadium Project, 5.00%, 12/1/15 1,225 1,360
Cleveland-Cuyahoga County, Port
Authority Revenue, Dev-Rita Project,
4.00%, 11/15/10 1,100 1,136
Columbus Sewer Revenue, 5.00%,
6/1/06 2,000 2,070
Columbus, Refunding, Police/Fireman
Disability, 5.00%, 7/15/14 1,000 1,070
Columbus, Series 2, GO, 6.00%,
6/15/07 4,090 4,423
Cuyahoga County Hospital Revenue,
5.50%, 2/15/09 2,245 2,462
Cuyahoga County Jail Facilities, GO,
5.25%, 10/1/13 3,000 3,411
Dayton-Montgomery County Port
Authority, Development-Parking Garage
Project, Series A, 5.00%, 11/15/17 1,090 1,125
Economic Development Revenue,
3.50%, 12/1/07 415 417
Economic Development Revenue,
4.40%, 12/1/12 815 840
Erie County Hospital Facilities
Revenue, 5.00%, 8/15/08 400 419
Erie County Hospital Facilities Revenue,
5.50%, 8/15/12 250 274
Euclid City School District, GO, 5.13%,
12/1/11, (Callable 12/1/05 @ 102) 1,500 1,564
Franklin County Development Revenue,
5.50%, 10/1/12, (Callable 10/1/09 @
101) 2,270 2,479
Franklin County, Online Computer
Library Center, 5.00%, 4/15/10 2,270 2,430
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Greater Cleveland Regional Transit
Authority, 5.38%, 12/1/11, (Callable
12/1/08 @ 101) $ 1,455 $ 1,613
Hamilton County Hospital Facilities
Revenue, 5.20%, 12/1/13, (Callable
12/1/07 @ 101) 1,000 1,070
Hamilton County Hospital Facilities
Revenue, Cincinnati Children's Hospital,
Series J, 4.50%, 5/15/14 1,510 1,615
Hamilton County Hospital Facilities,
Revenue, 5.25%, 5/15/11, (Callable
11/15/08 @ 101) 2,670 2,926
Hamilton County Sewer System
Revenue, Series A, 5.60%, 12/1/08,
(Callable 12/1/05 @ 102) 1,000 1,048
Higher Education, Capital Facilities
Revenue, 5.50%, 12/1/09 2,000 2,224
Higher Education, Capital Facilities
Revenue, Series II-A, 5.50%, 12/1/07 4,695 5,073
Higher Education, Capital Facilities
Revenue, Series II-A, 5.00%, 12/1/08 2,000 2,164
Higher Education, Case Western
Reserve, 6.25%, 7/1/14 6,500 7,859
Higher Education, Dennison University
Project, 5.50%, 11/1/12, (Callable
11/1/11@ 101) 1,000 1,134
Higher Education, John Carroll
University, 5.25%, 11/15/14, (Callable
11/15/13 @ 100) 1,435 1,599
Higher Education, John Carroll
University, 5.25%, 11/15/15, (Callable
11/15/13 @ 100) 1,490 1,655
Hilliard School District, 5.50%,
12/1/08 2,780 3,055
Housing Authority, 4.63%, 9/1/31,
(Callable 1/1/11 @ 100) 1,975 2,019
Housing Finance Agency, (AMT),
3.95%, 9/1/08 430 436
Housing Finance Agency, (AMT),
4.15%, 9/1/09 725 732
Housing Finance Agency, (AMT),
4.35%, 9/1/10 270 273
Housing Finance Agency, (AMT),
3.65%, 9/1/11 830 809
Housing Finance Agency, (AMT),
4.55%, 9/1/11 280 286
Housing Finance Agency, (AMT),
3.30%, 9/1/30 1,220 1,218
Knox County Hospital Facilities
Revenue, 4.70%, 6/1/08 1,150 1,207
Knox County Hospital Facilities
Revenue, 5.00%, 6/1/12 6,250 6,776
Lucas County, 6.65%, 12/1/12 145 147
Mental Health Capital Facilities, Series
II-A, 5.00%, 6/1/13 2,135 2,378
Montgomery County Catholic Health
Initiatives, Series A, 6.00%, 12/1/26 2,750 3,118
CONTINUED
80
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Montgomery County Solid Waste
Revenue, 5.40%, 11/1/08, (Callable
11/1/05 @ 102) $ 3,000 $ 3,127
Municipal Electric Generation Agency,
Refunding, Joint Venture, 5-CTFS Benefit
Interest, 5.00%, 2/15/14 3,675 4,081
North Olmstead, 6.20%, 12/1/11 3,000 3,533
Penta Career Center, 5.00%, 4/1/10 1,330 1,458
Revenue, Major New State Infrastructure,
Series 1, 5.00%, 6/15/06 2,500 2,589
Sidney Construction, 4.90%, 11/1/07 625 630
Solid Waste Revenue, 4.85%, 11/1/22 3,000 3,115
State Building Authority, Refunding,
State Facilities-Administration Building
Fund, Series A, 5.00%, 4/1/13 1,230 1,368
State Infrastructure Improvements, GO,
Series B, 5.00%, 3/1/19 1,000 1,111
State Schools, 5.00%, 6/15/13 1,000 1,116
State Solid Waste Revenue, Refunding,
Republic Services Project, 4.25%,
4/1/33 3,470 3,446
State, GO, 6.65%, 9/1/09 1,000 1,092
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvement Project, 5.00%,
12/1/09 1,110 1,169
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvements Project,
5.00%, 12/1/08 1,155 1,217
Turnpike Revenue, Series A, 5.70%,
2/15/17, (Prerefunded 2/15/06 @ 102) 5,000 5,275
University of Cincinnati, 5.00%,
6/1/10 300 330
University of Cincinnati, GO, 5.50%,
6/1/09 2,000 2,219
Water Development Authority, Pollution
Control Facilities Revenue, 5.25%,
12/1/08, (Callable 12/1/07 @ 101) 1,000 1,081
Water Revenue, 5.30%, 12/1/10,
(Callable 6/1/05 @ 101) 4,000 4,083
------------
148,830
------------
PUERTO RICO (2.5%)
Commonwealth, Refunding Series A,
5.00%, 7/1/30 1,000 1,076
Public Buildings Authority Revenue,
Refunding, Government Facilities, Series
K, 4.50%, 7/1/22 1,000 1,039
Public Finance Corp., Commonwealth
Appropriations, Series A, 5.75%, 8/1/27 1,500 1,687
------------
3,802
------------
TOTAL MUNICIPAL BONDS 152,632
------------
CONTINUED
SHARES VALUE
------------ ------------
MONEY MARKETS (0.2%)
Federated Ohio Municipal Cash Trust 83 $ --#
Touchstone Ohio Money Fund 342,651 343
------------
TOTAL MONEY MARKETS 343
------------
TOTAL INVESTMENTS (COST $146,792) + - 99.0% 152,975
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.0% 1,592
------------
NET ASSETS - 100.0% $ 154,567
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
81
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS (97.8%)
MICHIGAN (95.6%)
Ann Arbor Water Supply Systems,
5.00%, 2/1/10 $ 880 $ 964
Avondale School District, UTGO,
5.00%, 5/1/10 800 876
Berkley School District, GO, 7.00%,
1/1/07 1,300 1,407
Birmingham City School District,
5.00%, 11/1/10 1,905 2,102
Building Authority Revenue, Facilities
Program, Series III, 5.00%, 10/15/08 2,000 2,160
Building Authority Revenue, State
Police Communications III, 5.00%,
10/1/05 1,700 1,733
Cadillac Area Public Schools, UTGO,
7.25%, 5/1/05 300 304
Central Michigan University, 5.00%,
10/1/09 1,605 1,755
Certificate of Participation, Series A,
5.00%, 9/1/31 1,000 1,099
Charles Stewart Mott Community
College, UTGO, 5.00%, 7/1/09 1,000 1,091
Clarkston Schools, 4.00%, 5/1/12 200 208
Comprehensive Transportation, Series
A, 5.25%, 5/15/09 3,000 3,297
Comprehensive Transportation, Series
B, 5.25%, 5/15/09 1,390 1,527
Detroit City School District, 5.50%,
5/1/06 1,730 1,797
Detroit Economic Development Corp.,
(AMT), 4.00%, 5/1/06 2,500 2,542
Detroit City School District, Building &
Site Improvements, Series A, 5.00%,
5/1/08 1,000 1,074
Detroit Convention Facilities, 5.00%,
9/30/08 2,000 2,158
Detroit, GO, 6.00%, 4/1/06 750 782
Dexter Community School District, GO,
6.25%, 5/1/07 1,730 1,872
Farmington Hills Economic
Development Corp. Revenue, Botsford
Continuing Care, Series A, 5.20%,
2/15/05 470 471
Ferndale, UTGO, 4.50%, 4/1/10 1,190 1,276
Forest Hills Public Schools, GO,
5.25%, 5/1/09 2,785 3,043
Frankenmuth School District, UTGO,
5.50%, 5/1/05 100 101
Frankenmuth School District, UTGO,
5.50%, 5/1/06 125 130
Grand Rapids & Kent County Joint
Building, GO, 5.50%, 10/1/09 605 671
Grand Rapids & Kent County Joint
Building, UTGO, 5.50%, 10/1/07 535 574
Grand Rapids Charter Township, Porter
Hills Obligated Group, 4.35%, 7/1/05 200 201
Greater Detroit Resource Recovery
Authority, 6.25%, 12/13/06 2,500 2,672
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Higher Education Facilities Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/05 $ 590 $ 604
Higher Education Facilities Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/06 725 761
Higher Education Facilities Authority
Revenue, Hope College Project, 4.60%,
10/1/08 320 335
Higher Education Facility Authority -
Thomas M. Cooley Law School, 4.75%,
5/1/07 1,265 1,312
Higher Education Student Loan
Authority Revenue, (AMT), 5.00%,
3/1/07 2,525 2,618
Higher Education Student Loan
Authority Revenue, Series XII-W (AMT),
4.60%, 9/1/08 1,000 1,057
Higher Education Student Loan
Authority Revenue, Series XII-W (AMT),
4.75%, 3/1/09 200 214
Higher Education Student Loan
Authority Revenue, Series XVII-I (AMT),
3.65%, 3/1/10 1,000 1,011
Hospital Finance Authority Revenue,
Oakwood Obligated Group, 5.00%,
11/1/05 730 743
Hospital Finance Authority Revenue, St.
John's Hospital & Medical Center,
5.00%, 5/15/06 1,450 1,498
Hospital Finance Authority, Bay
Medical Center, Series A, 5.38%, 7/1/06 1,855 1,930
Hospital Financial Authority Revenue,
7.50%, 10/1/27, (Prerefunded 10/1/05 @
100) 1,000 1,036
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A, 3.50%,
3/1/06 200 201
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A, 3.85%,
3/1/07 200 203
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A, 4.15%,
3/1/08 300 308
Hospital Financial Authority Revenue,
Sparrow Obligation Group, 5.00%,
11/15/05 1,055 1,077
Hospital Financial Authority Revenue,
Sparrow Obligation Group, 5.00%,
11/15/06 735 760
Housing Development Authority,
(AMT), Series B, 3.25%, 12/1/05 70 70
Housing Development Authority,
(AMT), Series B, 3.55%, 12/1/06 175 175
Housing Development Authority,
(AMT), Series B, 3.85%, 12/1/07 215 217
CONTINUED
82
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Housing Development Authority,
(AMT), Series B, 4.13%, 12/1/08 $ 305 $ 309
Housing Development Authority,
(AMT), Series B, 4.35%, 12/1/09 355 361
Housing Development Authority,
(AMT), Series B, 4.55%, 12/1/10 455 464
Housing Development Authority,
(AMT), Series B, 4.65%, 12/1/11 485 500
Housing Development Authority,
Parkway Meadows Project, 3.50%,
10/15/08 930 955
Housing Development Authority,
Parkway Meadows Project, 3.50%,
10/15/09 710 726
Jackson County Economic Development
Corp., Limited Obligation Revenue, Vista
Grande Villa, Series A, 1.89%, 11/1/31 (d) 500 500
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.50%, 5/15/08 750 815
Kenowa Hills Public Schools, UTGO,
5.50%, 5/1/06 1,000 1,039
Kent, Hospital Finance Authority
Revenue, Spectrum Health, 5.25%,
1/15/08 430 457
Municipal Bond Authority Revenue,
5.00%, 12/1/05 2,000 2,047
Municipal Bond Authority Revenue,
Series A, 5.25%, 12/1/07 1,000 1,073
Municipal Building Authority Revenue,
Government Loan Program, Series C,
5.00%, 5/1/10 1,000 1,095
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/06 1,130 1,170
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/08 1,000 1,067
Novi Community School District,
Building & Site Improvements, 4.13%,
5/1/08 1,000 1,045
Novi Community School District,
Building & Site Improvements, 5.00%,
10/1/08 2,320 2,505
South Central Power Agency, Power
Supply System Revenue, 5.80%,
11/1/05 65 67
South Macomb Disposal Authority
Revenue, 5.00%, 9/1/08 1,115 1,201
South Redford School District, GO,
5.25%, 5/1/09, (Prerefunded 5/1/07 @
100) 1,575 1,674
State Hospital Finance Authority
Revenue, 4.15%, 1/1/12 450 463
Strategic Fund Obligation International,
2.00%, 8/1/05 1,030 1,029
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Hope Network Project,
Series B, 4.75%, 9/1/07 $ 615 $ 642
Strategic Fund, Limited Obligation
Revenue, Consumers Energy Company
Project, 3.38%, 6/15/10 2,000 2,019
Strategic Fund, Limited Obligation
Revenue, Solid Waste Disposal, 3.15%,
12/1/13 (d) 1,000 1,000
Three Rivers Community Schools,
6.00%, 5/1/23, (Prerefunded 5/1/06 @
101) 970 1,024
Trunk Line, Series A, 5.50%, 11/1/07 1,025 1,105
Trunk Line, Series A, 5.25%, 11/1/09 1,000 1,102
Underground Storage, Tank Financial
Assurance Authority, Series I, 6.00%,
5/1/06 2,270 2,375
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 2,000 2,168
University of Michigan Hospital
Revenue, 5.00%, 12/1/09 510 557
Warren Building Authority, 3.70%,
11/1/09 225 232
Washtenaw Community College,
4.00%, 4/1/07 2,355 2,435
Wayne Charter, Airport Revenue, Series
D, 5.25%, 12/1/06 2,000 2,090
Wayne County Community College,
5.25%, 7/1/09 1,000 1,101
Wayne-Westland Community Schools,
5.00%, 5/1/10 1,000 1,097
------------
93,526
------------
PUERTO RICO (2.2%)
Public Buildings Authority Revenue,
Refunding, Government Facilities, Series
K, 4.50%, 7/1/22 1,000 1,039
Public Finance Corp., Commonwealth
Appropriations, Series A, 5.75%, 8/1/27 1,000 1,125
------------
2,164
------------
TOTAL MUNICIPAL BONDS 95,690
------------
MONEY MARKETS (0.1%)
AIM Tax Free Money Market Fund 168 --#
Dreyfus Tax Exempt Money Market Fund 71,088 71
Merrill Lynch Institutional Tax
Exempt Fund 5,000 5
------------
TOTAL MONEY MARKETS 76
------------
TOTAL INVESTMENTS (COST $94,477) + - 97.9% 95,766
OTHER ASSETS IN EXCESS OF LIABILITIES - 2.1% 2,052
------------
NET ASSETS - 100.0% $ 97,818
============
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
83
This page intentionally left blank.
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
JANUARY 31, 2005 (UNAUDITED)
(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
January 31, 2005. 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 January 31, 2005.
(h) Investment is in Institutional Shares of underlying fund.
(i) Common Stock.
(j) The Fund's securities were fair valued at January 31, 2005 using
procedures approved by the Board of Trustees.
(k) Affiliated issuer as defined under the Investment Company Act of 1940
(ownership of 5% or more of the outstanding voting securities of this
issuer).
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
LP - Limited Partnership
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 $ 241,270 $ 59,890 $ (9,602) $ 50,288
Mid Cap Growth Fund 409,235 94,089 (8,732) 85,357
Quality Growth Fund 924,186 157,611 (45,573) 112,038
Large Cap Core Fund 97,757 19,446 (5,637) 13,809
Equity Index Fund 341,132 235,286 (26,698) 208,588
Balanced Fund 170,443 16,915 (842) 16,073
Micro Cap Value Fund 169,106 91,630 (10,351) 81,279
Small Cap Value Fund 132,786 16,108 (5,124) 10,984
Multi Cap Value Fund 344,513 103,575 (9,317) 94,258
Disciplined Large Cap Value Fund 593,878 134,041 (9,151) 124,890
LifeModel Aggressive Fund SM 105,988 16,011 (1,142) 14,869
LifeModel Moderately Aggressive Fund SM 243,780 28,874 (2,751) 26,123
LifeModel Moderate Fund SM 477,559 26,854 (7,811) 19,043
LifeModel Moderately Conservative Fund SM 100,756 9,144 (1,545) 7,599
LifeModel Conservative Fund SM 58,879 2,274 (1,022) 1,252
Strategic Income Fund 169,200 9,715 (1,914) 7,801
Select Stock Fund 14,479 1,974 (551) 1,423
Technology Fund 58,456 3,048 (2,163) 885
International Equity Fund 388,609 62,614 (48,268) 14,346
Bond Fund 336,118 5,892 (637) 5,255
Intermediate Bond Fund 782,367 5,038 (3,750) 1,288
Short Term Bond Fund 707,621 271 (10,001) (9,730)
U.S. Government Bond Fund 70,630 577 (284) 293
Municipal Bond Fund 53,986 4,906 (3) 4,903
Intermediate Municipal Bond Fund 221,307 11,650 (221) 11,429
Ohio Municipal Bond Fund 146,598 6,638 (261) 6,377
Michigan Municipal Bond Fund 94,466 1,638 (338) 1,300
SEE NOTES TO FINANCIAL STATEMENTS
85
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
Open futures contracts as of January 31, 2005
(Amounts in thousands except contract amount)
UNREALIZED
NUMBER OF NOTIONAL APPRECIATION/ MARKET
CONTRACTS CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE
--------- ----------------------------- --------- ------------- --------
Small Cap Growth Fund 32 Russell 2000, 3/17/05 $ 10,324 $ (318) $ 10,006
========= ======== ======== ========
Large Cap Core Fund 18 Standard & Poor's 500, 3/17/05 5,441 (124) 5,317
========= ======== ======== ========
Equity Index Fund 11 Standard & Poor's 500, 3/17/05 3,257 (7) 3,250
========= ======== ======== ========
International Equity Fund 15 Long, SPI 200, 3/17/05 1,136 51 1,187
32 Long, CAC40 10, 3/18/05 1,600 36 1,636
38 Long, DAX, 3/18/05 5,439 (153) 5,286
103 Short, Euro Stoxx 50, 3/18/05 (3,989) (28) (4,017)
56 Long, HANG SENG, 2/25/05 4,889 31 4,920
38 Long, TOPIX, 3/10/05 4,228 (42) 4,186
162 Long, Taiwan, 2/25/05 3,945 113 4,058
--------- -------- -------- --------
238 $ 17,248 $ 8 $ 17,256
========= ======== ======== ========
As of January 31, 2005, 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 $ 47,408 $ 46,209 $ 46,861
Mid Cap Growth Fund 92,474 90,136 76,390
Quality Growth Fund 69,123 67,376 82,154
Large Cap Core Fund 8,804 8,581 9,536
Equity Index Fund 83,790 81,672 59,567
Balanced Fund 11,543 11,251 10,179
Multi Cap Value Fund 58,971 57,480 53,345
Disciplined Large Cap Value Fund 51,676 50,370 52,585
Select Stock Fund 346 337 659
Technology Fund 11,189 10,906 10,195
International Equity Fund 23,315 22,726 28,116
Bond Fund 7,914 7,714 8,060
Intermediate Bond Fund 159,814 155,774 162,160
Short Term Bond Fund 186,483 181,769 180,203
At January 31, 2005, 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 2.14%
to 2.70% and maturity dates ranging from February 1, 2005 to April 1, 2014).
SEE NOTES TO FINANCIAL STATEMENTS
86
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
International Equity Fund Foreign Currency Contracts as of January 31, 2005
(Amounts in thousands):
CONTRACT CURRENT
AMOUNT CONTRACT VALUE UNREALIZED
DELIVERY (LOCAL VALUE U.S. U.S. APPRECIATION/
DATE CURRENCY) DOLLAR DOLLAR (DEPRECIATION)
-------- --------- ---------- --------- -------------
AUSTRALIAN DOLLAR
- --------------------------------------
Short Contracts
3/16/05 1,382 $ 1,046 $ 1,067 $ (21)
Long Contracts
3/16/05 2,620 1,975 2,023 48
3/16/05 260 201 201 --^
EURO
- --------------------------------------
Short Contracts
3/16/05 2,270 3,017 2,960 57
3/16/05 3,177 4,227 4,143 84
3/16/05 1,472 1,970 1,920 50
3/16/05 3,050 3,983 3,977 6
3/16/05 1,055 1,375 1,376 (1)
3/16/05 6,100 7,954 7,954 --^
3/16/05 1,230 1,602 1,604 (2)
Long Contracts
3/16/05 9,684 12,895 12,628 (267)
3/16/05 5,372 7,150 7,004 (146)
3/16/05 1,434 1,907 1,869 (38)
3/16/05 789 1,050 1,029 (21)
3/16/05 1,065 1,437 1,389 (48)
3/16/05 2,250 3,067 2,934 (133)
BRITISH POUND STERLING
- --------------------------------------
Short Contracts
3/16/05 1,591 3,043 2,987 56
3/16/05 1,051 2,010 1,974 36
Long Contracts
3/16/05 2,642 5,057 4,962 (95)
JAPANESE YEN
- --------------------------------------
Short Contracts
3/16/05 168,864 1,620 1,635 (15)
3/16/05 1,294,508 12,383 12,534 (151)
3/16/05 65,850 631 638 (7)
3/16/05 861,123 8,233 8,337 (104)
3/16/05 557,830 5,338 5,401 (63)
3/16/05 873,640 8,358 8,459 (101)
3/16/05 253,115 2,441 2,451 (10)
4/06/05 1,410,311 13,591 13,678 (87)
3/16/05 103,925 1,000 1,006 (6)
Long Contracts
3/16/05 1,672,680 16,007 16,195 188
3/16/05 1,352,172 12,971 13,092 121
3/16/05 676,986 6,478 6,555 77
3/16/05 307,528 2,947 2,978 31
3/16/05 100,560 984 974 (10)
3/16/05 103,095 995 998 3
4/06/05 1,410,311 13,626 13,678 52
3/16/05 399,000 3,877 3,863 (14)
TAIWAN DOLLAR
- --------------------------------------
Long Contracts
2/25/05 117,586 3,700 3,699 (1)
SEE NOTES TO FINANCIAL STATEMENTS
87
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment concentrations for the Equity Funds as a percentage of net
assets, by industry, as of January 31, 2005, 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 0.8% -- -- -- 0.2% 0.3%
Aerospace/Defense 1.7% 1.3% 3.3% 2.3% 1.8% --
Agriculture -- -- -- 1.3% 1.5% --
Airlines -- -- -- -- 0.1% 0.6%
Apparel 1.3% 1.9% -- -- 0.5% 9.3%
Auto Manufacturers 1.0% -- -- 0.9% 0.5% --
Auto Parts & Equipment -- -- -- 0.3% 0.2% --
Banks 2.5% 1.3% 6.0% 5.8% 6.4% 0.3%
Beverages -- -- -- 2.4% 2.3% --
Biotechnology 1.8% 1.6% 3.7% -- 1.1% --
Building Materials 1.1% -- -- 1.1% 0.3% 1.4%
Cash Equivalents 22.6% 22.2% 7.3% 13.6% 18.7% 2.8%
Chemicals -- 1.1% -- 1.7% 1.6% 3.4%
Closed-end Funds -- -- -- -- -- --
Commercial Services 2.3% 5.7% 5.2% -- 0.9% 4.0%
Computers 1.3% 3.6% 6.2% 4.3% 4.3% 4.4%
Cosmetics/Personal Care -- 1.5% -- 2.8% 2.4% --
Distribution/Wholesale -- 4.7% -- -- 0.1% 1.2%
Diversified Financial Services 1.7% 2.8% 5.3% 4.4% 8.3% 1.5%
Electric 0.8% -- -- 2.1% 2.9% --
Electrical Components & Equipment 2.2% -- 1.7% 0.8% 0.3% 1.5%
Electronics 4.6% 7.8% 4.2% 0.5% 0.6% 3.8%
Engineering & Construction 0.5% -- -- -- --^ 1.5%
Entertainment 0.5% -- 3.2% -- 0.1% 2.0%
Environmental Control -- 1.1% -- -- 0.2% 1.2%
Food -- -- 1.5% 2.3% 1.8% 0.9%
Food Service -- -- -- -- -- --
Forest Products & Paper -- -- -- 0.9% 0.6% --
Gas -- -- -- 1.0% 0.2% --
Hand/Machine Tools -- -- -- 0.3% 0.1% 0.3%
Healthcare-Products 5.7% 6.5% 5.1% 4.3% 3.8% 3.6%
Healthcare-Services 2.6% 2.0% 1.6% 2.1% 1.5% 1.4%
Holding Companies-Diversified -- -- -- -- -- --
Home Builders 1.9% 3.8% -- -- 0.2% --
Home Furnishings -- 1.6% -- -- 0.1% 4.2%
Household Products/Wares 2.7% -- -- -- 0.3% 0.8%
Housewares -- -- -- -- 0.1% 0.7%
Insurance 1.2% 2.0% -- 9.8% 4.6% 1.0%
Internet 5.0% 4.3% -- -- 1.1% 2.5%
Investment Companies -- -- -- -- -- 1.5%
Iron/Steel 2.3% -- -- -- 0.2% 4.3%
Leisure Time -- -- 1.4% -- 0.6% 0.6%
Lodging -- -- 1.0% -- 0.4% --
Machinery-Construction & Mining 1.1% 1.5% -- -- 0.3% --
Machinery-Diversified 0.5% 0.9% 0.8% 0.9% 0.4% 0.9%
Media -- 1.2% -- 2.2% 3.7% --
Metal Fabricate/Hardware -- -- -- -- --^ 1.4%
Mining -- -- -- 0.4% 0.5% 2.9%
Miscellaneous Manufacturing 2.8% 1.5% 7.0% 4.1% 5.9% 2.2%
Office Furnishings -- -- -- -- -- --
Office/Business Equipment -- -- -- 1.7% 0.2% --
Oil & Gas 3.2% 5.7% 1.1% 7.1% 6.5% 2.1%
Oil & Gas Services 2.2% 1.4% 1.0% 1.0% 0.8% 4.4%
Packaging & Containers -- -- -- 0.9% 0.1% --
Pharmaceuticals 5.8% 5.7% 6.4% 4.3% 5.7% 1.5%
Pipelines -- -- -- -- 0.2% --^
Real Estate -- -- -- -- -- --
REITS -- -- -- -- 0.3% --
Retail 9.2% 11.4% 11.8% 6.7% 6.9% 8.4%
Savings & Loans 1.8% -- -- -- 0.6% --
Semiconductors 4.1% 3.0% 10.3% 3.2% 3.0% 1.5%
Software 8.1% 1.8% 3.2% 5.6% 4.6% 0.7%
Sovereign 0.6% -- -- -- -- --
Storage/Warehousing -- -- -- -- -- 1.4%
Telecommunications 6.2% 6.8% 6.2% 4.7% 5.6% 4.0%
Textiles -- 1.1% 2.7% -- 0.1% 1.2%
Toys/Games/Hobbies 1.2% -- -- -- 0.1% --
Transportation 4.5% -- -- 0.7% 1.5% 6.4%
Trucking & Leasing -- -- -- -- --^ --
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 -- 0.7% -- -- -- --
Aerospace/Defense -- 1.1% 4.7% -- -- --
Agriculture -- -- -- -- -- --
Airlines -- -- -- -- -- --
Apparel 2.9% -- -- -- -- --
Auto Manufacturers -- 0.5% 1.9% -- -- --
Auto Parts & Equipment 0.9% 2.4% -- -- -- --
Banks -- 1.5% 7.5% -- -- --
Beverages 1.7% -- -- -- -- --
Biotechnology -- 1.3% -- -- -- --
Building Materials -- 0.8% 1.3% -- -- --
Cash Equivalents 7.2% 25.1% 12.8% -- -- --
Chemicals 6.4% 1.1% 4.3% -- -- --
Closed-end Funds -- 0.5% -- -- -- --
Commercial Services 5.1% 0.2% -- -- -- --
Computers 0.8% 3.7% 5.3% -- -- --
Cosmetics/Personal Care -- 0.9% -- -- -- --
Distribution/Wholesale -- -- 1.6% -- -- --
Diversified Financial Services 1.7% 3.8% 7.8% -- -- --
Electric 5.6% 2.4% 5.1% -- -- --
Electrical Components & Equipment -- 0.4% -- -- -- --
Electronics 2.0% 2.0% 2.3% -- -- --
Engineering & Construction -- -- -- -- -- --
Entertainment -- -- -- -- -- --
Environmental Control -- 1.2% -- -- -- --
Food 4.3% 5.9% 4.9% -- -- --
Food Service -- -- -- -- -- --
Forest Products & Paper -- 1.5% 3.9% -- -- --
Gas 3.9% -- -- -- -- --
Hand/Machine Tools -- 1.2% -- -- -- --
Healthcare-Products 2.0% 1.5% -- -- -- --
Healthcare-Services 6.5% 2.0% -- -- -- --
Holding Companies-Diversified -- -- -- -- -- --
Home Builders -- -- -- -- -- --
Home Furnishings -- 2.2% -- -- -- --
Household Products/Wares 1.9% 0.7% -- -- -- --
Housewares -- 0.2% -- -- -- --
Insurance 8.6% 5.7% 7.7% -- -- --
Internet 1.1% -- -- -- -- --
Investment Companies 3.7% 1.6% -- 100.1% 100.0% 99.9%
Iron/Steel -- -- -- -- -- --
Leisure Time -- -- -- -- -- --
Lodging -- -- -- -- -- --
Machinery-Construction & Mining -- -- 2.3% -- -- --
Machinery-Diversified -- 2.0% -- -- -- --
Media -- 2.5% 2.8% -- -- --
Metal Fabricate/Hardware -- -- -- -- -- --
Mining 3.8% -- -- -- -- --
Miscellaneous Manufacturing -- 3.7% 6.8% -- -- --
Office Furnishings -- -- -- -- -- --
Office/Business Equipment -- -- -- -- -- --
Oil & Gas 3.2% 9.8% 11.7% -- -- --
Oil & Gas Services 8.2% 1.6% -- -- -- --
Packaging & Containers -- -- -- -- -- --
Pharmaceuticals 2.8% 4.1% 3.5% -- -- --
Pipelines -- -- -- -- -- --
Real Estate -- -- -- -- -- --
REITS -- -- -- -- -- --
Retail 9.0% 8.2% 5.1% -- -- --
Savings & Loans -- -- -- -- -- --
Semiconductors 2.9% 2.4% 0.7% -- -- --
Software -- 0.7% -- -- -- --
Sovereign -- -- -- -- -- --
Storage/Warehousing -- -- -- -- -- --
Telecommunications 3.1% 5.8% 4.1% -- -- --
Textiles -- -- -- -- -- --
Toys/Games/Hobbies -- 0.6% -- -- -- --
Transportation -- 2.6% -- -- -- --
Trucking & Leasing -- -- -- -- -- --
Water -- -- -- -- -- --
LIFEMODEL
MODERATELY LIFEMODEL SELECT INTERNATIONAL
CONSERVATIVE CONSERVATIVE STOCK TECHNOLOGY EQUITY
FUND SM FUND SM FUND FUND FUND
------------ ------------ --------- ---------- -------------
Advertising -- -- -- -- 0.2%
Aerospace/Defense -- -- 5.5% -- 0.4%
Agriculture -- -- -- -- 1.0%
Airlines -- -- -- -- 0.1%
Apparel -- -- -- -- 0.1%
Auto Manufacturers -- -- -- -- 3.4%
Auto Parts & Equipment -- -- -- -- 0.7%
Banks -- -- -- -- 18.1%
Beverages -- -- -- -- 1.1%
Biotechnology -- -- -- 6.6% --^
Building Materials -- -- -- -- 1.6%
Cash Equivalents -- -- 4.2% 24.5% 5.9%
Chemicals -- -- -- -- 2.2%
Closed-end Funds -- -- -- -- --
Commercial Services -- -- 6.2% 1.7% 1.1%
Computers -- -- 7.2% 13.0% 0.4%
Cosmetics/Personal Care -- -- -- -- 0.6%
Distribution/Wholesale -- -- -- -- 0.9%
Diversified Financial Services -- -- 12.0% -- 1.6%
Electric -- -- -- -- 3.5%
Electrical Components & Equipment -- -- -- -- 1.0%
Electronics -- -- 3.7% 5.6% 1.7%
Engineering & Construction -- -- -- -- 1.0%
Entertainment -- -- 4.0% -- 0.3%
Environmental Control -- -- -- -- --^
Food -- -- -- -- 3.7%
Food Service -- -- -- -- 0.1%
Forest Products & Paper -- -- -- -- 0.5%
Gas -- -- -- -- 0.7%
Hand/Machine Tools -- -- -- -- 0.4%
Healthcare-Products -- -- 7.0% -- 0.5%
Healthcare-Services -- -- -- -- --
Holding Companies-Diversified -- -- -- -- 0.5%
Home Builders -- -- -- -- 0.3%
Home Furnishings -- -- -- -- 1.0%
Household Products/Wares -- -- -- -- 0.3%
Housewares -- -- -- -- 0.1%
Insurance -- -- -- -- 3.4%
Internet -- -- -- 19.7% 0.4%
Investment Companies 100.0% 100.1% -- -- 3.7%
Iron/Steel -- -- 4.2% -- 0.9%
Leisure Time -- -- -- 2.4% 0.1%
Lodging -- -- -- -- 0.2%
Machinery-Construction & Mining -- -- -- -- 0.2%
Machinery-Diversified -- -- 3.6% -- 0.2%
Media -- -- -- -- 1.7%
Metal Fabricate/Hardware -- -- -- -- 0.2%
Mining -- -- 3.7% -- 2.3%
Miscellaneous Manufacturing -- -- 3.4% -- 1.9%
Office Furnishings -- -- -- -- --^
Office/Business Equipment -- -- -- -- 0.8%
Oil & Gas -- -- -- -- 8.7%
Oil & Gas Services -- -- -- -- --^
Packaging & Containers -- -- -- -- 0.1%
Pharmaceuticals -- -- 5.2% 1.7% 5.5%
Pipelines -- -- -- -- --
Real Estate -- -- -- -- 1.3%
REITS -- -- -- -- --
Retail -- -- 10.9% -- 2.5%
Savings & Loans -- -- -- -- --
Semiconductors -- -- 12.3% 19.9% 0.4%
Software -- -- -- 11.2% 0.4%
Sovereign -- -- -- -- --
Storage/Warehousing -- -- -- -- --^
Telecommunications -- -- 6.2% 17.6% 9.4%
Textiles -- -- 2.8% -- 0.2%
Toys/Games/Hobbies -- -- -- -- 0.2%
Transportation -- -- -- -- 1.4%
Trucking & Leasing -- -- -- -- --
Water -- -- -- -- 0.4%
_______________
^ Amount is less than 0.05%.
SEE NOTES TO FINANCIAL STATEMENTS
88-89
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment concentrations for the Balanced Fund and Strategic Income Fund as
a percentage of net assets, by industry, as of January 31, 2005, were as
follows:
STRATEGIC
BALANCED INCOME
FUND FUND
-------- ---------
Advertising 2.3% --
Aerospace/Defense 2.7% --
Auto Manufacturers 0.2% 0.3%
Automobile ABS 5.9% --
Banks 7.9% 15.1%
Beverages 1.5% --
Cash Equivalents 7.2% 2.0%
Chemicals 2.7% --
Closed-end Funds -- 9.0%
Commercial MBS 6.9% --
Computers 4.4% --
Cosmetics/Personal Care 1.0% 0.3%
Credit Card ABS -- 0.3%
Diversified Financial Services 4.5% 25.8%
Electric 0.7% 6.5%
Electrical Components & Equipment 1.2% --
Food -- 2.4%
Forest Products & Paper -- 1.0%
Gas -- 0.6%
Healthcare-Products 4.2% --
Holding Companies-Diversified -- 0.6%
STRATEGIC
BALANCED INCOME
FUND FUND
-------- ---------
Home Furnishings -- 0.3%
Insurance 2.6% 5.5%
Internet 1.6% --
Investment Companies -- 8.3%
Media 1.3% 1.1%
Miscellaneous Manufacturing 7.6% 0.2%
Oil & Gas 3.6% --
Oil & Gas Services 2.3% --
Other ABS 1.8% --
Pharmaceuticals 4.1% 0.8%
Pipelines 0.3% 0.6%
Regional (state/provnc) -- 0.6%
REITS -- 8.6%
Retail 7.0% 1.2%
Savings & Loans 0.6% 0.5%
Software 3.0% --
Sovereign 15.8% 3.6%
Telecommunications 2.4% 1.4%
Transportation 1.2% --
WL Collateral CMO 4.5% 4.4%
The investment concentrations for the Bond Funds as a percentage of net assets,
by industry, as of January 31, 2005, were as follows:
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT
BOND BOND BOND BOND
FUND FUND FUND FUND
-------- ------------ ---------- ----------
Agency Collateral PAC CMO -- -- 6.1% --
Agriculture -- 0.2% -- --
Auto Manufacturers 0.8% 1.8% 0.4% --
Automobile ABS 8.9% 2.7% 6.9% --
Banks 9.4% 9.6% 9.9% --
Beverages -- 0.2% -- --
Cash Equivalents 4.4% 25.7% 38.3% 3.3%
Chemicals -- 1.3% 0.2% --
Commercial MBS 14.6% 11.5% 5.6% --
Commercial Services 0.8% 0.7% 0.3% --
Computers -- -- 1.7% --
Credit Card ABS -- 0.9% 0.2% --
Development -- -- 0.2% --
Diversified Financial Services 9.0% 15.9% 5.6% --
Electric 0.6% 2.6% 1.3% --
Food -- 0.5% 1.0% --
Forest Products & paper -- 0.3% -- --
Gas -- 0.8% 1.1% --
General Obligation 0.8% -- -- --
Household Products/Wares -- 0.2% -- --
Insurance 0.5% 0.5% 2.1% --
Media 1.3% 1.4% 0.5% --
Mining -- -- 0.3% --
Miscellaneous Manufacturing -- -- 0.1% --
Oil & Gas 1.4% 2.4% 1.5% --
Other ABS 6.8% 3.3% 0.6% --
Pipelines 0.7% 0.6% 0.5% --
Regional(state/provnc) -- 0.4% -- --
REITS -- 0.3% -- --
Retail 0.5% -- -- --
Savings & Loans 1.5% 1.3% -- --
Sovereign 52.4% 32.5% 44.5% 102.4%
Telecommunications 1.4% 1.1% 1.8% --
Transportation 0.1% 0.4% -- --
WL Collateral CMO 10.4% 6.1% 3.9% --
SEE NOTES TO FINANCIAL STATEMENTS~
90
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment concentrations for the Municipal Bond Funds as a percentage of
net assets, by industry, as of January 31, 2005, were as follows:
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
FUND FUND FUND FUND
--------- ------------ --------- ---------
Airport 14.2% 10.2% -- 2.1%
Cash Equivalents 0.9% 0.4% 0.2% 0.1%
Development 3.0% 5.9% 2.4% 6.2%
Education 7.0% 2.5% 3.3% --
Facilities 2.0% 5.2% 6.2% 8.5%
General 10.8% 6.2% 7.7% 9.0%
General Obligation 6.3% 12.0% 17.0% 10.8%
Higher Education 5.8% 3.3% 12.4% 6.0%
Housing 3.9% 2.5% 2.4% 1.7%
Medical 8.6% 6.8% 13.4% 13.1%
Nursing Homes -- -- -- 0.7%
Pollution -- 0.4% 9.6% 5.0%
Power -- 6.8% 7.3% 0.1%
School District 25.6% 14.9% 6.4% 19.3%
Single Family Housing 4.3% 2.2% 1.3% 2.1%
Student Loan 1.9% 5.4% -- 5.0%
Transportation 3.8% 8.7% 7.4% 7.2%
Utilities 3.4% 5.5% 2.0% --
Water 1.9% 1.5% -- 1.0%
SEE NOTES TO FINANCIAL STATEMENTS~
91
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2005 (UNAUDITED)
(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 $ 233,269 $ 408,852 $ 917,766 $ 90,551
Net unrealized appreciation 50,688 85,740 117,365 15,985
----------- ----------- ----------- -----------
Investments, at value 283,957 494,592 1,035,131 106,536
Investments in affiliates, at value
(cost $0, $0, $0, $0, $0, $0, $1,404, $0, $0, $0, $0) -- -- -- --
Investments in affiliates at value
Repurchase agreements, at cost 7,919 -- 1,093 5,154
----------- ----------- ----------- -----------
Total Investments 291,876 494,592 1,036,224 111,690
Cash --^ -- --^ 1
Interest, dividends and other receivables 19 76 320 78
Receivable for investments sold -- 16,078 -- --
Receivable for Fund shares sold 1 4 15 --^
Receivable for variation margin on futures contracts 150 -- -- 36
Receivable from Advisor and affiliates -- -- -- 2
Prepaid expenses and other assets 34 50 75 18
----------- ----------- ----------- -----------
Total Assets 292,080 510,800 1,036,634 111,825
----------- ----------- ----------- -----------
LIABILITIES:
Payable to Custodian -- 351 -- --
Payable for investments purchased -- 1,240 -- --
Payable for securities loaned 47,408 92,474 69,123 8,804
Payable for Fund shares redeemed 11 37 283 1
Accrued expenses and other payables:
Payable to Advisor and affiliates 156 297 700 66
Distribution and administrative services fees 8 17 63 6
Other 52 43 108 32
----------- ----------- ----------- -----------
Total Liabilities 47,635 94,459 70,277 8,909
----------- ----------- ----------- -----------
NET ASSETS:
Paid-in Capital 181,097 350,897 971,950 131,769
Accumulated net investment income/(loss) (985) (1,151) 2,387 7
Accumulated net realized gain/(loss) from investment
transactions and futures 13,963 (19,145) (125,345) (44,721)
Net unrealized appreciation on investments and futures 50,370 85,740 117,365 15,861
----------- ----------- ----------- -----------
Net Assets $ 244,445 $ 416,341 $ 966,357 $ 102,916
=========== =========== =========== ===========
Market value of securities loaned $ 46,209 $ 90,136 $ 67,376 $ 8,581
=========== =========== =========== ===========
Net Assets:
Institutional Shares $ 216,100 $ 361,166 $ 752,956 $ 76,308
Class A Shares 24,413 45,600 185,210 25,592
Class B Shares 1,908 6,850 19,124 856
Class C Shares 760 1,723 5,973 160
Advisor Shares 1,264 1,002 3,094 NA
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
----------- ----------- ----------- -----------
Total $ 244,445 $ 416,341 $ 966,357 $ 102,916
=========== =========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 15,065 25,088 49,889 5,484
Class A Shares 1,745 3,232 12,486 1,863
Class B Shares 139 501 1,331 62
Class C Shares 55 131 427 12
Advisor Shares 90 71 210 NA
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
----------- ----------- ----------- -----------
Total 17,094 29,023 64,343 7,421
=========== =========== =========== ===========
Net Asset Value
Institutional Shares $ 14.34 $ 14.40 $ 15.09 $ 13.91
=========== =========== =========== ===========
Class A Shares-redemption price per share $ 13.99 $ 14.11 $ 14.83 $ 13.73
=========== =========== =========== ===========
Class B Shares-offering price per share* $ 13.74 $ 13.68 $ 14.37 $ 13.78
=========== =========== =========== ===========
Class C Shares-offering price per share* $ 13.76 $ 13.19 $ 14.00 $ 13.78
=========== =========== =========== ===========
Advisor Shares $ 14.04 $ 14.01 $ 14.72 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) $ 14.73 $ 14.85 $ 15.61 $ 14.45
=========== =========== =========== ===========
EQUITY MICRO CAP SMALL CAP
INDEX BALANCED VALUE VALUE
FUND FUND FUND FUND
----------- ----------- ----------- -----------
ASSETS:
Investments, at cost $ 328,761 $ 170,258 $ 160,421 $ 122,026
Net unrealized appreciation 217,847 16,258 81,998 11,360
----------- ----------- ----------- -----------
Investments, at value 546,608 186,516 242,419 133,386
Investments in affiliates, at value
(cost $0, $0, $0, $0, $0, $0, $1,404, $0, $0, $0, $0) -- -- 875 --
Investments in affiliates at value
Repurchase agreements, at cost 3,119 -- 7,091 10,384
----------- ----------- ----------- -----------
Total Investments 549,727 186,516 250,385 143,770
Cash 1 -- --^ 2,063
Interest, dividends and other receivables 374 377 67 29
Receivable for investments sold -- 3,297 283 570
Receivable for Fund shares sold 5 4 -- 3
Receivable for variation margin on futures contracts 27 -- -- --
Receivable from Advisor and affiliates 11 -- -- --
Prepaid expenses and other assets 61 43 48 12
----------- ----------- ----------- -----------
Total Assets 550,206 190,237 250,783 146,447
----------- ----------- ----------- -----------
LIABILITIES:
Payable to Custodian -- -- -- --
Payable for investments purchased -- 13,378 12 1,457
Payable for securities loaned 83,790 11,543 -- --
Payable for Fund shares redeemed 15 148 12 6
Accrued expenses and other payables:
Payable to Advisor and affiliates 50 91 222 141
Distribution and administrative services fees 51 28 21 2
Other 46 32 35 47
----------- ----------- ----------- -----------
Total Liabilities 83,952 25,220 302 1,653
----------- ----------- ----------- -----------
NET ASSETS:
Paid-in Capital 256,337 206,979 158,733 129,690
Accumulated net investment income/(loss) 470 33 (163) (336)
Accumulated net realized gain/(loss) from investment
transactions and futures (8,393) (58,253) 10,442 4,080
Net unrealized appreciation on investments and futures 217,840 16,258 81,469 11,360
----------- ----------- ----------- -----------
Net Assets $ 466,254 $ 165,017 $ 250,481 $ 144,794
=========== =========== =========== ===========
Market value of securities loaned $ 81,672 $ 11,251 $ -- $ --
=========== =========== =========== ===========
Net Assets:
Institutional Shares $ 206,340 $ 81,169 $ 151,985 $ 139,112
Class A Shares 73,275 67,318 41,880 2,511
Class B Shares 4,140 11,961 7,514 840
Class C Shares 2,390 4,360 6,230 594
Advisor Shares 1,570 209 42,872 1,737
Select Shares 15,581 NA NA NA
Preferred Shares 82,642 NA NA NA
Trust Shares 80,316 NA NA NA
----------- ----------- ----------- -----------
Total $ 466,254 $ 165,017 $ 250,481 $ 144,794
=========== =========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 9,192 6,434 13,944 6,960
Class A Shares 3,275 5,367 3,919 126
Class B Shares 186 965 717 43
Class C Shares 107 352 594 30
Advisor Shares 70 17 4,034 88
Select Shares 694 NA NA NA
Preferred Shares 3,683 NA NA NA
Trust Shares 3,579 NA NA NA
----------- ----------- ----------- -----------
Total 20,786 13,135 23,208 7,247
=========== =========== =========== ===========
Net Asset Value
Institutional Shares $ 22.45 $ 12.62 $ 10.90 $ 19.99
=========== =========== =========== ===========
Class A Shares-redemption price per share $ 22.37 $ 12.54 $ 10.69 $ 19.89
=========== =========== =========== ===========
Class B Shares-offering price per share* $ 22.24 $ 12.40 $ 10.48 $ 19.62
=========== =========== =========== ===========
Class C Shares-offering price per share* $ 22.25 $ 12.38 $ 10.48 $ 19.59
=========== =========== =========== ===========
Advisor Shares $ 22.35 $ 12.51 $ 10.63 $ 19.81
=========== =========== =========== ===========
Select Shares $ 22.44 NA NA NA
=========== =========== =========== ===========
Preferred Shares $ 22.44 NA NA NA
=========== =========== =========== ===========
Trust Shares $ 22.44 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) $ 23.55 $ 13.20 $ 11.25 $ 20.94
=========== =========== =========== ===========
DISCIPLINED
MULTI CAP LARGE CAP LIFEMODEL
VALUE VALUE AGGRESSIVE
FUND FUND FUND SM
----------- ----------- -----------
ASSETS:
Investments, at cost $ 308,501 $ 558,970 $ 105,702
Net unrealized appreciation 94,479 126,623 15,155
----------- ----------- -----------
Investments, at value 402,980 685,593 120,857
Investments in affiliates, at value
(cost $0, $0, $0, $0, $0, $0, $1,404, $0, $0, $0, $0) -- -- --
Investments in affiliates at value
Repurchase agreements, at cost 35,791 33,175 --
----------- ----------- -----------
Total Investments 438,771 718,768 120,857#
Cash 153 1 --
Interest, dividends and other receivables 210 701 5
Receivable for investments sold 634 1,812 --
Receivable for Fund shares sold 102 75 61
Receivable for variation margin on futures contracts -- -- --
Receivable from Advisor and affiliates -- -- 5
Prepaid expenses and other assets 30 58 13
----------- ----------- -----------
Total Assets 439,900 721,415 120,941
----------- ----------- -----------
LIABILITIES:
Payable to Custodian -- -- --
Payable for investments purchased 2,294 4,436 --
Payable for securities loaned 58,971 51,676 --
Payable for Fund shares redeemed 61 94 107
Accrued expenses and other payables:
Payable to Advisor and affiliates 334 470 7
Distribution and administrative services fees 47 11 23
Other 35 38 12
----------- ----------- -----------
Total Liabilities 61,742 56,725 149
----------- ----------- -----------
NET ASSETS:
Paid-in Capital 281,448 524,372 103,182
Accumulated net investment income/(loss) 29 366 (12)
Accumulated net realized gain/(loss) from investment
transactions and futures 2,202 13,329 2,467
Net unrealized appreciation on investments and futures 94,479 126,623 15,155
----------- ----------- -----------
Net Assets $ 378,158 $ 664,690 $ 120,792
=========== =========== ===========
Market value of securities loaned $ 57,480 $ 50,370 $ --
=========== =========== ===========
Net Assets:
Institutional Shares $ 274,616 $ 634,243 $ 61,534
Class A Shares 35,441 23,331 43,125
Class B Shares 20,494 5,090 14,113
Class C Shares 5,214 2,026 2,020
Advisor Shares 42,393 NA NA
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
----------- ----------- -----------
Total $ 378,158 $ 664,690 $ 120,792
=========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 11,478 45,074 4,629
Class A Shares 1,497 1,661 3,255
Class B Shares 886 359 1,080
Class C Shares 226 145 155
Advisor Shares 1,798 NA NA
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
----------- ----------- -----------
Total 15,885 47,239 9,119
=========== =========== ===========
Net Asset Value
Institutional Shares $ 23.93 $ 14.07 $ 13.29
=========== =========== ===========
Class A Shares-redemption price per share $ 23.68 $ 14.04 $ 13.25
=========== =========== ===========
Class B Shares-offering price per share* $ 23.13 $ 14.16 $ 13.07
=========== =========== ===========
Class C Shares-offering price per share* $ 23.11 $ 13.94 $ 13.07
=========== =========== ===========
Advisor Shares $ 23.57 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) $ 24.93 $ 14.78 $ 13.95
=========== =========== ===========
_______________________
* 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
92 - 93 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2005 (UNAUDITED)
(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 $ 243,173 $ 476,987 $ 100,500 $ 58,581
Net unrealized appreciation/(depreciation) 26,730 19,615 7,855 1,550
----------- ----------- ----------- -----------
Investments, at value 269,903 496,602 108,355 60,131
Repurchase agreements, at cost -- -- -- --
----------- ----------- ----------- -----------
Total Investments 269,903# 496,602# 108,355# 60,131#
Cash -- -- -- --
Foreign currency, at value
(cost $0, $0, $0, $0, $0, $0, $0, $169, $0, $0 and $0, respectively) -- -- -- --
Interest, dividends and other receivables 7 16 4 1
Receivable for investments sold -- -- -- --
Receivable for Fund shares sold 138 435 94 --
Receivable for forward foreign currency contracts -- -- -- --
Reclaims receivable -- -- -- --
Receivable from Advisor and affiliates 10 17 4 3
Prepaid expenses and other assets 24 29 11 11
----------- ----------- ----------- -----------
Total Assets 270,082 497,099 108,468 60,146
----------- ----------- ----------- -----------
LIABILITIES:
Distributions payable -- -- -- --
Payable for investments purchased -- -- -- --
Payable for securities loaned -- -- -- --
Payable for Fund shares redeemed 145 98 26 18
Payable for forward foreign currency contracts -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 15 28 6 4
Distribution and administrative services fees 70 65 31 22
Other 20 35 12 8
----------- ----------- ----------- -----------
Total Liabilities 250 226 75 52
----------- ----------- ----------- -----------
NET ASSETS:
Paid-in Capital 238,480 469,891 99,458 58,093
Accumulated net investment income/(loss) 100 524 126 102
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency 4,522 6,843 954 349
Net unrealized appreciation/(depreciation) on investments,
futures and foreign currency 26,730 19,615 7,855 1,550
----------- ----------- ----------- -----------
Net Assets $ 269,832 $ 496,873 $ 108,393 $ 60,094
=========== =========== =========== ===========
Market value of securities loaned $ -- $ -- $ -- $ --
=========== =========== =========== ===========
Net Assets:
Institutional Shares $ 99,466 $ 339,491 $ 40,758 $ 16,149
Class A Shares 116,226 107,728 40,958 24,485
Class B Shares 45,184 41,566 22,838 13,692
Class C Shares 8,956 8,088 3,839 5,768
Advisor Shares NA NA NA NA
----------- ----------- ----------- -----------
Total $ 269,832 $ 496,873 $ 108,393 $ 60,094
=========== =========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 7,580 28,247 3,627 1,499
Class A Shares 8,871 8,976 3,650 2,276
Class B Shares 3,463 3,479 2,043 1,276
Class C Shares 687 677 343 538
Advisor Shares NA NA NA NA
----------- ----------- ----------- -----------
Total 20,601 41,379 9,663 5,589
=========== =========== =========== ===========
Net Asset Value
Institutional Shares $ 13.12 $ 12.02 $ 11.24 $ 10.78
=========== =========== =========== ===========
Class A Shares-redemption price per share $ 13.10 $ 12.00 $ 11.22 $ 10.76
=========== =========== =========== ===========
Class B Shares-offering price per share* $ 13.05 $ 11.95 $ 11.18 $ 10.73
=========== =========== =========== ===========
Class C Shares-offering price per share* $ 13.04 $ 11.95 $ 11.19 $ 10.73
=========== =========== =========== ===========
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) $ 13.79 $ 12.63 $ 11.81 $ 11.33
=========== =========== =========== ===========
STRATEGIC SELECT INTERNATIONAL
INCOME STOCK TECHNOLOGY EQUITY
FUND FUND FUND FUND
----------- ----------- ----------- -----------
ASSETS:
Investments, at cost $ 165,574 $ 14,163 $ 57,803 $ 387,106
Net unrealized appreciation/(depreciation) 7,937 1,423 990 14,345
----------- ----------- ----------- -----------
Investments, at value 173,511 15,586 58,793 401,451
Repurchase agreements, at cost 3,490 316 548 --
----------- ----------- ----------- -----------
Total Investments 177,001 15,902 59,341 401,451
Cash --^ --^ 1 17,581
Foreign currency, at value
(cost $0, $0, $0, $0, $0, $0, $0, $169, $0, $0 and $0, respectively) -- -- -- 172
Interest, dividends and other receivables 872 3 1 314
Receivable for investments sold -- -- 4,209 43
Receivable for Fund shares sold 25 --^ 1 4
Receivable for forward foreign currency contracts -- -- -- 810
Reclaims receivable -- -- -- 137
Receivable from Advisor and affiliates -- 1 -- 2
Prepaid expenses and other assets 28 35 33 61
----------- ----------- ----------- -----------
Total Assets 177,926 15,941 63,586 420,575
----------- ----------- ----------- -----------
LIABILITIES:
Distributions payable 604 -- -- --
Payable for investments purchased 1,762 -- 4,430 --
Payable for securities loaned -- 346 11,189 23,315
Payable for Fund shares redeemed 44 2 1 8
Payable for forward foreign currency contracts -- -- -- 1,342
Accrued expenses and other payables:
Payable to Advisor and affiliates 155 12 43 352
Distribution and administrative services fees 48 2 4 12
Other 27 8 12 106
----------- ----------- ----------- -----------
Total Liabilities 2,640 370 15,679 25,135
----------- ----------- ----------- -----------
NET ASSETS:
Paid-in Capital 167,455 31,687 97,663 428,697
Accumulated net investment income/(loss) 79 (76) (354) (2,701)
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency (185) (17,463) (50,392) (44,396)
Net unrealized appreciation/(depreciation) on investments,
futures and foreign currency 7,937 1,423 990 13,840
----------- ----------- ----------- -----------
Net Assets $ 175,286 $ 15,571 $ 47,907 $ 395,440
=========== =========== =========== ===========
Market value of securities loaned $ -- $ 337 $ 10,906 $ 22,726
=========== =========== =========== ===========
Net Assets:
Institutional Shares $ 97,470 $ 6,925 $ 37,735 $ 356,686
Class A Shares 2,554 7,740 6,880 23,759
Class B Shares 911 344 1,413 1,007
Class C Shares 35,041 562 1,634 679
Advisor Shares 39,310 NA 245 13,309
----------- ----------- ----------- -----------
Total $ 175,286 $ 15,571 $ 47,907 $ 395,440
=========== =========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 8,462 343 4,103 33,999
Class A Shares 222 390 757 2,259
Class B Shares 79 18 161 97
Class C Shares 3,068 30 186 67
Advisor Shares 3,422 NA 27 1,267
----------- ----------- ----------- -----------
Total 15,253 781 5,234 37,689
=========== =========== =========== ===========
Net Asset Value
Institutional Shares $ 11.52 $ 20.17 $ 9.20 $ 10.49
=========== =========== =========== ===========
Class A Shares-redemption price per share $ 11.49 $ 19.84 $ 9.09 $ 10.52
=========== =========== =========== ===========
Class B Shares-offering price per share* $ 11.49 $ 19.44 $ 8.80 $ 10.42
=========== =========== =========== ===========
Class C Shares-offering price per share* $ 11.42 $ 18.92 $ 8.77 $ 10.15
=========== =========== =========== ===========
Advisor Shares $ 11.49 NA $ 9.01 $ 10.50
=========== =========== =========== ===========
Maximum sales charge-Class A Shares 5.00% 5.00% 5.00% 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge)
of net asset value adjusted to the nearest cent) per share
(Class A Shares) $ 12.09 $ 20.88 $ 9.57 $ 11.07
=========== =========== =========== ===========
INTERMEDIATE SHORT TERM
BOND BOND BOND
FUND FUND FUND
----------- ----------- -----------
ASSETS:
Investments, at cost $ 335,104 $ 778,501 $ 702,328
Net unrealized appreciation/(depreciation) 6,269 5,154 (4,437)
----------- ----------- -----------
Investments, at value 341,373 783,655 697,891
Repurchase agreements, at cost -- -- --
----------- ----------- -----------
Total Investments 341,373 783,655 697,891
Cash -- -- --
Foreign currency, at value
(cost $0, $0, $0, $0, $0, $0, $0, $169, $0, $0 and $0, respectively) -- -- --
Interest, dividends and other receivables 1,372 6,209 4,057
Receivable for investments sold -- 15,212 4,036
Receivable for Fund shares sold -- ^ -- --
Receivable for forward foreign currency contracts -- -- --
Reclaims receivable -- -- --
Receivable from Advisor and affiliates 4 5 2
Prepaid expenses and other assets 46 50 36
----------- ----------- -----------
Total Assets 342,795 805,131 706,022
----------- ----------- -----------
LIABILITIES:
Distributions payable -- -- --
Payable for investments purchased 64,350 18,867 4,098
Payable for securities loaned 7,914 159,814 186,483
Payable for Fund shares redeemed 32 7 91
Payable for forward foreign currency contracts -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 146 316 236
Distribution and administrative services fees 8 9 6
Other 39 75 35
----------- ----------- -----------
Total Liabilities 72,489 179,088 190,949
----------- ----------- -----------
NET ASSETS:
Paid-in Capital 264,504 646,708 535,842
Accumulated net investment income/(loss) (691) (1,858) (2,545)
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency 224 (23,961) (13,787)
Net unrealized appreciation/(depreciation) on investments,
futures and foreign currency 6,269 5,154 (4,437)
----------- ----------- -----------
Net Assets $ 270,306 $ 626,043 $ 515,073
=========== =========== ===========
Market value of securities loaned $ 7,714 $ 155,774 $ 181,769
=========== =========== ===========
Net Assets:
Institutional Shares $ 246,439 $ 587,235 $ 490,136
Class A Shares 18,267 33,728 24,355
Class B Shares 4,161 3,680 NA
Class C Shares 750 1,400 582
Advisor Shares 689 NA NA
----------- ----------- -----------
Total $ 270,306 $ 626,043 $ 515,073
=========== =========== ===========
Shares of Beneficial Interest Outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 24,196 58,951 51,702
Class A Shares 1,795 3,378 2,571
Class B Shares 409 370 NA
Class C Shares 74 141 61
Advisor Shares 68 NA NA
----------- ----------- -----------
Total 26,542 62,840 54,334
=========== =========== ===========
Net Asset Value
Institutional Shares $ 10.19 $ 9.96 $ 9.48
=========== =========== ===========
Class A Shares-redemption price per share $ 10.18 $ 9.99 $ 9.47
=========== =========== ===========
Class B Shares-offering price per share* $ 10.18 $ 9.93 NA
=========== =========== ===========
Class C Shares-offering price per share* $ 10.18 $ 9.95 $ 9.47
=========== =========== ===========
Advisor Shares $ 10.18 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) $ 10.69 $ 10.35 $ 9.81
=========== =========== ===========
_______________________
* 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
94 - 95 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2005 (UNAUDITED)
(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 $ 70,742 $ 54,014 $ 221,337 $ 146,792 $ 94,477
Net unrealized appreciation 181 4,875 11,399 6,183 1,289
--------- --------- ------------ --------- ---------
Total Investments 70,923 58,889 232,736 152,975 95,766
Interest, dividends and other receivables 438 743 2,467 1,687 1,108
Receivable for investments sold -- 1,726 104 -- 2,016
Receivable for Fund shares sold -- 2 -- -- --
Receivable from Advisor and affiliates -- 2 -- -- 2
Prepaid expenses and other assets 30 22 36 24 9
--------- --------- ------------ --------- ---------
Total Assets 71,391 61,384 235,343 154,686 98,901
--------- --------- ------------ --------- ---------
LIABILITIES:
Payable for investments purchased 4,240 4,394 3,324 -- 1,000
Payable for Fund shares redeemed 17 --^ -- 13 24
Accrued expenses and other payables:
Payable to Advisor and affiliates 27 29 87 75 41
Distribution and administrative services fees 9 2 1 14 3
Other 7 10 30 17 15
--------- --------- ------------ --------- ---------
Total Liabilities 4,300 4,435 3,442 119 1,083
--------- --------- ------------ --------- ---------
NET ASSETS:
Paid-in Capital 66,607 51,241 219,526 147,987 96,533
Accumulated net investment income/(loss) 75 5 (1,166) 55 5
Accumulated net realized gain/(loss) from
investment transactions 228 828 2,142 342 (9)
Net unrealized appreciation on investments 181 4,875 11,399 6,183 1,289
--------- --------- ------------ --------- ---------
Net Assets $ 67,091 $ 56,949 $ 231,901 $ 154,567 $ 97,818
========= ========= ============ ========= =========
Net Assets:
Institutional Shares $ 34,840 $ 52,877 $ 227,228 $ 116,594 $ 89,819
Class A Shares 28,652 1,763 3,319 29,391 5,850
Class B Shares NA 1,500 1,138 4,512 1,349
Class C Shares 3,599 369 216 4,070 800
Advisor Shares NA 440 NA NA NA
--------- --------- ------------ --------- ---------
Total $ 67,091 $ 56,949 $ 231,901 $ 154,567 $ 97,818
========= ========= ============ ========= =========
Shares of Beneficial Interest Outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 3,426 5,196 21,702 11,227 8,851
Class A Shares 2,814 173 317 2,829 577
Class B Shares NA 148 109 443 133
Class C Shares 356 36 21 393 79
Advisor Shares NA 43 NA NA NA
--------- --------- ------------ --------- ---------
Total 6,596 5,596 22,149 14,892 9,640
========= ========= ============ ========= =========
Net Asset Value
Institutional Shares $ 10.17 $ 10.18 $ 10.47 $ 10.39 $ 10.15
========= ========= ============ ========= =========
Class A Shares-redemption price per share $ 10.18 $ 10.22 $ 10.47 $ 10.39 $ 10.14
========= ========= ============ ========= =========
Class B Shares-offering price per share* NA $ 10.15 $ 10.45 $ 10.17 $ 10.14
========= ========= ============ ========= =========
Class C Shares-offering price per share* $ 10.10 $ 10.16 $ 10.47 $ 10.35 $ 10.14
========= ========= ============ ========= =========
Advisor Shares NA $ 10.17 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) $ 10.69 $ 10.73 $ 10.85 $ 10.91 $ 10.65
========= ========= ============ ========= =========
__________________
* Redemption price per share varies by length of time shares are held.
SEE NOTES TO FINANCIAL STATEMENTS
96
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP EQUITY
GROWTH GROWTH GROWTH CORE INDEX
FUND FUND FUND FUND FUND
-------- -------- -------- -------- --------
INVESTMENT INCOME:
Interest income $ 103 $ 119 $ 83 $ 44 $ 46
Dividend income 200 1,003 8,459 1,333 6,118
Income from securities lending 52 31 27 2 20
-------- -------- -------- -------- --------
Total Investment Income 355 1,153 8,569 1,379 6,184
-------- -------- -------- -------- --------
EXPENSES:
Investment advisory fees 889 1,626 4,326 394 772
Administrative fees 228 361 953 99 471
Distribution services fees-Class A Shares 32 60 261 32 92
Distribution services fees-Class B Shares 9 34 102 4 20
Distribution services fees-Class C Shares 3 7 26 1 8
Distribution services fees-Advisor Shares 3 2 8 NA 4
Administrative services fees-Class C Shares 1 2 9 --^ 3
Administrative services fees-Select Shares NA NA NA NA 6
Administrative services fees-Preferred Shares NA NA NA NA 101
Administrative services fees-Trust Shares NA NA NA NA 101
Accounting fees 50 63 117 33 96
Registration and filing fees 9 16 19 4 15
Transfer and dividend disbursing agent fees 51 72 196 30 87
Custody fees 17 15 26 13 42
Trustees' fees and expenses 3 5 12 1 6
Other expenses 35 45 131 18 73
-------- -------- -------- -------- --------
Total expenses 1,330 2,308 6,186 629 1,897
-------- -------- -------- -------- --------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates -- -- -- (73) (1,067)
Transfer and dividend disbursing agent fees waived (4) (4) (4) (1) (7)
-------- -------- -------- -------- --------
Net Expenses 1,326 2,304 6,182 555 823
-------- -------- -------- -------- --------
Net Investment Income/(Loss) (971) (1,151) 2,387 824 5,361
-------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAINS/(LOSSES)
FROM INVESTMENTS AND FUTURES:
Net realized gains on investment transactions 13,126 6,133 22,901 1,688 53,272+
Net realized gains on futures transactions 851 -- -- 255 568
Change in unrealized appreciation/depreciation
on investments and futures 13,106 36,792 13,502 6,792 (17,486)
-------- -------- -------- -------- --------
Net realized and unrealized gains on investments
and futures 27,083 42,925 36,403 8,735 36,354
-------- -------- -------- -------- --------
Change in net assets resulting from operations $ 26,112 $ 41,774 $ 38,790 $ 9,559 $ 41,715
======== ======== ======== ======== ========
_______________
^ Represents fewer than five hundred dollars.
+ Includes realized gains from in-kind transactions in the amount of
$54,187.
SEE NOTES TO FINANCIAL STATEMENTS
97
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
MICRO CAP SMALL CAP MULTI CAP
BALANCED VALUE VALUE VALUE
FUND FUND FUND FUND
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 1,186 $ 101 $ 112 $ 312
Dividend income 1,590 1,532 358 2,644
Income from securities lending 4 -- -- 51
------------ ------------ ------------ ------------
Total Investment Income 2,780 1,633 470 3,007
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 714 1,262 589 1,778
Administrative fees 162 227 115 316
Distribution services fees-Class A Shares 90 53 3 45
Distribution services fees-Class B Shares 63 36 3 99
Distribution services fees-Class C Shares 17 22 2 17
Distribution services fees-Advisor Shares --^ 105 4 104
Administrative services fees-Class C Shares 6 7 1 6
Accounting fees 47 49 32 58
Registration and filing fees 16 18 3 8
Transfer and dividend disbursing agent fees 52 66 26 71
Custody fees 14 18 12 16
Trustees' fees and expenses 2 3 1 4
Other expenses 26 35 16 42
------------ ------------ ------------ ------------
Total expenses 1,209 1,901 807 2,564
------------ ------------ ------------ ------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (117) -- -- --
Transfer and dividend disbursing agent fees waived (1) (4) (1) (4)
Distribution services-Class B Shares, Class C Shares
and Advisor Shares waived -- (101) -- --
------------ ------------ ------------ ------------
Net Expenses 1,091 1,796 806 2,560
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 1,689 (163) (336) 447
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) on investment transactions 1,394 12,229 4,285 13,353
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on investments 7,622 17,980 5,623 25,835
------------ ------------ ------------ ------------
Net realized and unrealized gains on investments 9,016 30,209 9,908 39,188
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 10,705 $ 30,046 $ 9,572 $ 39,635
============ ============ ============ ============
DISCIPLINED LIFEMODEL
LARGE CAP LIFEMODEL MODERATELY LIFEMODEL
VALUE AGGRESSIVE AGGRESSIVE MODERATE
FUND FUND SM FUND SM FUND SM
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 219 -- -- --
Dividend income 7,202 $ 1,054# $ 2,625# $ 6,034#
Income from securities lending 16 -- -- --
------------ ------------ ------------ ------------
Total Investment Income 7,437 1,054 2,625 6,034
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 2,684 85 188 361
Administrative fees 588 100 219 422
Distribution services fees-Class A Shares 29 52 135 130
Distribution services fees-Class B Shares 25 66 216 199
Distribution services fees-Class C Shares 7 7 31 28
Distribution services fees-Advisor Shares NA NA NA NA
Administrative services fees-Class C Shares 2 2 10 9
Accounting fees 80 30 41 65
Registration and filing fees 16 4 8 3
Transfer and dividend disbursing agent fees 90 30 54 75
Custody fees 16 7 9 12
Trustees' fees and expenses 7 1 3 5
Other expenses 75 15 28 55
------------ ------------ ------------ ------------
Total expenses 3,619 399 942 1,364
------------ ------------ ------------ ------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates -- (225) (447) (802)
Transfer and dividend disbursing agent fees waived (3) --^ (2) (2)
Distribution services-Class B Shares, Class C Shares
and Advisor Shares waived -- -- -- --
------------ ------------ ------------ ------------
Net Expenses 3,616 174 493 560
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 3,821 880 2,132 5,474
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) on investment transactions 19,467 (278)+ (9)+ (10)+
Realized gain distributions from underlying funds -- 2,976 4,937 7,386
Change in unrealized appreciation/depreciation on investments 26,394 4,972 8,667 11,416
------------ ------------ ------------ ------------
Net realized and unrealized gains on investments 45,861 7,670 13,595 18,792
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 49,682 $ 8,550 $ 15,727 $ 24,266
============ ============ ============ ============
LIFEMODEL
MODERATELY LIFEMODEL STRATEGIC
CONSERVATIVE CONSERVATIVE INCOME
FUND SM FUND SM FUND
------------ ------------ ------------
INVESTMENT INCOME:
Interest income -- -- $ 1,171
Dividend income $ 1,431# $ 941# 4,152
Income from securities lending -- -- --
------------ ------------ ------------
Total Investment Income 1,431 941 5,323
------------ ------------ ------------
EXPENSES:
Investment advisory fees 80 45 884
Administrative fees 93 52 161
Distribution services fees-Class A Shares 51 30 2
Distribution services fees-Class B Shares 113 70 3
Distribution services fees-Class C Shares 13 24 143
Distribution services fees-Advisor Shares NA NA 101
Administrative services fees-Class C Shares 4 8 48
Accounting fees 31 30 45
Registration and filing fees 4 4 9
Transfer and dividend disbursing agent fees 27 20 45
Custody fees 7 5 15
Trustees' fees and expenses 1 1 2
Other expenses 14 9 26
------------ ------------ ------------
Total expenses 438 298 1,484
------------ ------------ ------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (214) (142) --
Transfer and dividend disbursing agent fees waived --^ --^ (1)
Distribution services-Class B Shares, Class C Shares
and Advisor Shares waived -- -- --
------------ ------------ ------------
Net Expenses 224 156 1,483
------------ ------------ ------------
Net Investment Income/(Loss) 1,207 785 3,840
------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) on investment transactions (91)+ (11)+ 309
Realized gain distributions from underlying funds 1,270 544 --
Change in unrealized appreciation/depreciation on investments 2,323 600 5,254
------------ ------------ ------------
Net realized and unrealized gains on investments 3,502 1,133 5,563
------------ ------------ ------------
Change in net assets resulting from operations $ 4,709 $ 1,918 $ 9,403
============ ============ ============
________________________
# Represents income from affiliates.
+ Represents realized losses from investment transactions with affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
98 - 99 Spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SELECT INTERNATIONAL
STOCK TECHNOLOGY EQUITY BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 4 $ 3 $ 137 $ 5,572
Dividend income 56 38 3,393 59
Foreign tax withholding -- -- (274) --
Income from securities lending --^ 16 59 5
------------ ------------ ------------ ------------
Total Investment Income 60 57 3,315 5,636
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 67 245 1,974 873
Administrative fees 15 48 353 261
Distribution services fees-Class A Shares 11 9 30 27
Distribution services fees-Class B Shares 2 7 4 22
Distribution services fees-Class C Shares 2 6 2 3
Distribution services fees-Advisor Shares NA 1 32 2
Administrative services fees-Class C Shares 1 2 1 1
Accounting fees 30 36 147 62
Registration and filing fees 15 16 24 16
Transfer and dividend disbursing agent fees 17 24 67 50
Custody fees 4 9 143 18
Trustees' fees and expenses --^ 1 5 4
Other expenses 4 8 61 39
------------ ------------ ------------ ------------
Total expenses 168 412 2,843 1,378
------------ ------------ ------------ ------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (31) -- (103) (175)
Transfer and dividend disbursing agent fees waived (1) (1) (4) (4)
Distribution services-Class A Shares and
Class B Shares waived -- -- -- --
------------ ------------ ------------ ------------
Net Expenses 136 411 2,736 1,199
------------ ------------ ------------ ------------
Net Investment Income/(Loss) (76) (354) 579 4,437
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 325 1,522 7,314 4,138
Net realized gains on futures transactions -- -- 492 --
Change in unrealized appreciation/depreciation
on investments, futures and foreign currency 624 2,878 45,848 1,765
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses) on
investments, futures and foreign currency 949 4,400 53,654 5,903
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 873 $ 4,046 $ 54,233 $ 10,340
============ ============ ============ ============
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT MUNICIPAL
BOND BOND BOND BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 14,166 $ 7,446 $ 1,271 $ 1,443
Dividend income 75 120 24 7
Foreign tax withholding -- -- -- --
Income from securities lending 72 58 -- --
------------ ------------ ------------ ------------
Total Investment Income 14,313 7,624 1,295 1,450
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 1,855 1,332 205 168
Administrative fees 591 466 65 59
Distribution services fees-Class A Shares 46 34 38 3
Distribution services fees-Class B Shares 20 NA NA 8
Distribution services fees-Class C Shares 6 2 15 1
Distribution services fees-Advisor Shares NA NA NA 1
Administrative services fees-Class C Shares 2 1 5 --^
Accounting fees 93 72 29 41
Registration and filing fees 14 8 12 7
Transfer and dividend disbursing agent fees 93 70 17 20
Custody fees 20 15 7 6
Trustees' fees and expenses 8 6 1 1
Other expenses 89 61 9 10
------------ ------------ ------------ ------------
Total expenses 2,837 2,067 403 325
------------ ------------ ------------ ------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (199) (67) (56) (71)
Transfer and dividend disbursing agent fees waived (3) (2) --^ (1)
Distribution services-Class A Shares
and Class B Shares waived (15) -- -- --
------------ ------------ ------------ ------------
Net Expenses 2,620 1,998 347 253
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 11,693 5,626 948 1,197
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 6,075 (254)+ 628 804
Net realized gains on futures transactions -- -- -- --
Change in unrealized appreciation/depreciation
on investments, futures and foreign currency (1,276) (1,936) (196) 253
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses) on
investments, futures and foreign currency 4,799 (2,190) 432 1,057
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 16,492 $ 3,436 $ 1,380 $ 2,254
============ ============ ============ ============
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND
FUND FUND FUND
------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 5,125 $ 3,273 $ 1,786
Dividend income 18 16 6
Foreign tax withholding -- -- --
Income from securities lending -- -- --
------------ ------------ ------------
Total Investment Income 5,143 3,289 1,792
------------ ------------ ------------
EXPENSES:
Investment advisory fees 686 443 244
Administrative fees 219 141 95
Distribution services fees-Class A Shares 5 35 8
Distribution services fees-Class B Shares 6 24 7
Distribution services fees-Class C Shares 1 16 4
Distribution services fees-Advisor Shares NA NA NA
Administrative services fees-Class C Shares --^ 5 1
Accounting fees 53 37 39
Registration and filing fees 13 10 4
Transfer and dividend disbursing agent fees 39 29 23
Custody fees 12 9 8
Trustees' fees and expenses 3 2 1
Other expenses 34 22 16
------------ ------------ ------------
Total expenses 1,071 773 450
------------ ------------ ------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (206) (64) (57)
Transfer and dividend disbursing agent fees waived (1) (1) (1)
Distribution services-Class A Shares and
Class B Shares waived (5) -- (3)
------------ ------------ ------------
Net Expenses 859 708 389
------------ ------------ ------------
Net Investment Income/(Loss) 4,284 2,581 1,403
------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 1,636 402 132
Net realized gains on futures transactions -- -- --
Change in unrealized appreciation/depreciation
on investments, futures and foreign currency 199 734 (181)
------------ ------------ ------------
Net realized and unrealized gains/(losses) on
investments, futures and foreign currency 1,835 1,136 (49)
------------ ------------ ------------
Change in net assets resulting from operations $ 6,119 $ 3,717 $ 1,354
============ ============ ============
___________________
^ Represents fewer than five hundred dollars.
+ Includes realized losses from in-kind transactions in the amount of $39.
SEE NOTES TO FINANCIAL STATEMENTS
100 - 101 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP
GROWTH FUND GROWTH FUND
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (a) 2004 2005 (a) 2004
----------- ----------- ----------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (971) $ (2,563) $ (1,151) $ (3,032)
Net realized gains/(losses) on investment
transactions 13,126 122,151 6,133 18,823
Net realized gains on futures transactions 851 1,907 -- --
Net change in unrealized appreciation/depreciation
on investments and futures 13,106 (79,194) 36,792 14,211
----------- ----------- ----------- -----------
Change in net assets resulting from operations 26,112 42,301 41,774 30,002
----------- ----------- ----------- -----------
Distributions from net investment income:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
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 (39,664) (35,732) -- --
Class A Shares (4,468) (2,457) -- --
Class B Shares (331) (173) -- --
Class C Shares (150) (86) -- --
Advisor Shares (213) (85) -- --
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (44,826) (38,533) -- --
----------- ----------- ----------- -----------
Change in net assets from
Fund share transactions 10,032 (161,358) (20,226) (13,609)
----------- ----------- ----------- -----------
Change in net assets (8,682) (157,590) 21,548 16,393
NET ASSETS:
Beginning of period 253,127 410,717 394,793 378,400
----------- ----------- ----------- -----------
End of period $ 244,445 $ 253,127 $ 416,341 $ 394,793
=========== =========== =========== ===========
Accumulated Net Investment Income/(Loss) $ (985) $ (14) $ (1,151) $ --
=========== =========== =========== ===========
QUALITY GROWTH FUND LARGE CAP CORE FUND
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
----------- ----------- ----------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 2,387 $ (3,706) $ 824 $ 1,170
Net realized gains/(losses) on investment
transactions 22,901 (1,831) 1,688 13,266
Net realized gains on futures transactions -- -- 255 629
Net change in unrealized appreciation/depreciation
on investments and futures 13,502 28,290 6,792 4,314
----------- ----------- ----------- -----------
Change in net assets resulting from operations 38,790 22,753 9,559 19,379
----------- ----------- ----------- -----------
Distributions from net investment income:
Institutional Shares -- -- (677) (1,093)
Class A Shares -- -- (176) (175)
Class B Shares -- -- (3) --^
Class C Shares -- -- --^ --^
Advisor Shares -- -- NA NA
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 -- -- (2,094) --
Class A Shares -- -- (656) --
Class B Shares -- -- (21) --
Class C Shares -- -- (4) --
Advisor Shares -- -- NA NA
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions -- -- (3,631) (1,268)
----------- ----------- ----------- -----------
Change in net assets from
Fund share transactions (207,203) 74,523 (19,748) (104,527)
----------- ----------- ----------- -----------
Change in net assets (168,413) 97,276 (13,820) (86,416)
NET ASSETS:
Beginning of period 1,134,770 1,037,494 116,736 203,152
----------- ----------- ----------- -----------
End of period $ 966,357 $ 1,134,770 $ 102,916 $ 116,736
=========== =========== =========== ===========
Accumulated Net Investment Income/(Loss) $ 2,387 $ -- $ 7 $ 39
=========== =========== =========== ===========
EQUITY INDEX FUND BALANCED FUND
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 (B) 2005 (A) 2004
----------- ----------- ----------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 5,361 $ 7,891 $ 1,689 $ 2,167
Net realized gains/(losses) on investment
transactions 53,272 27,907 1,394 15,483
Net realized gains on futures transactions 568 1,865 -- --
Net change in unrealized appreciation/depreciation
on investments and futures (17,486) 35,942 7,622 708
----------- ----------- ----------- -----------
Change in net assets resulting from operations 41,715 73,605 10,705 18,358
----------- ----------- ----------- -----------
Distributions from net investment income:
Institutional Shares (2,327) (4,473) (1,024) (1,777)
Class A Shares (765) (898) (725) (801)
Class B Shares (28) (21) (80) (36)
Class C Shares (15) (11) (29) (14)
Advisor Shares (14) (9) (2) (1)
Select Shares (174) (93) NA NA
Preferred Shares (1,160) (1,664) NA NA
Trust Shares (824) (962) NA NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (5,307) (8,131) (1,860) (2,629)
----------- ----------- ----------- -----------
Change in net assets from
Fund share transactions (104,813) (152,194) (34,365) (95,354)
----------- ----------- ----------- -----------
Change in net assets (68,405) (86,720) (25,520) (79,625)
NET ASSETS:
Beginning of period 534,659 621,379 190,537 270,162
----------- ----------- ----------- -----------
End of period $ 466,254 $ 534,659 $ 165,017 $ 190,537
=========== =========== =========== ===========
Accumulated Net Investment Income/(Loss) $ 470 $ 416 $ 33 $ 204
=========== =========== =========== ===========
BALANCED FUND MICRO CAP VALUE FUND
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
----------- ----------- ----------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,689 $ 2,167 $ (163) $ (890)
Net realized gains/(losses) on investment
transactions 1,394 15,483 12,229 26,765
Net realized gains on futures transactions -- -- -- --
Net change in unrealized appreciation/depreciation
on investments and futures 7,622 708 17,980 32,423
----------- ----------- ----------- -----------
Change in net assets resulting from operations 10,705 18,358 30,046 58,298
----------- ----------- ----------- -----------
Distributions from net investment income:
Institutional Shares (1,024) (1,777) -- --
Class A Shares (725) (801) -- --
Class B Shares (80) (36) -- --
Class C Shares (29) (14) -- --
Advisor Shares (2) (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 -- -- (9,983) (7,422)
Class A Shares -- -- (2,822) (2,062)
Class B Shares -- -- (486) (343)
Class C Shares -- -- (404) (188)
Advisor Shares -- -- (2,794) (2,136)
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (1,860) (2,629) (16,489) (12,151)
----------- ----------- ----------- -----------
Change in net assets from
Fund share transactions (34,365) (95,354) (14,351) 55,393
----------- ----------- ----------- -----------
Change in net assets (25,520) (79,625) (794) 101,540
NET ASSETS:
Beginning of period 190,537 270,162 251,275 149,735
----------- ----------- ----------- -----------
End of period $ 165,017 $ 190,537 $ 250,481 $ 251,275
=========== =========== =========== ===========
Accumulated Net Investment Income/(Loss) $ 33 $ 204 $ (163) $ --
=========== =========== =========== ===========
______________________
(a) Unaudited.
(b) 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
102 - 103 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MULTI CAP
VALUE FUND VALUE FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (336) $ (214) $ 447 $ 408
Net realized gains/(losses) on
investment transactions 4,285 15,827 13,353 16,925
Realized gain distributions from
underlying funds -- -- -- --
Net change in unrealized appreciation/
depreciation on investments 5,623 (1,332) 25,835 31,860
------------ ------------ ------------ ------------
Change in net assets resulting from operations 9,572 14,281 39,635 49,193
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares -- (67) (400) (490)
Class A Shares -- --^ (18) (19)
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
Distributions from net realized gains:
Institutional Shares (10,543) (3,928) (15,051) (644)
Class A Shares (219) (30) (2,088) (87)
Class B Shares (60) (8) (1,156) (52)
Class C Shares (46) (17) (289) (9)
Advisor Shares (140) (21) (2,387) (135)
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (11,008) (4,071) (21,389) (1,436)
------------ ------------ ------------ ------------
Change in net assets from
Fund share transactions 33,939 28,748 28,926 27,907
------------ ------------ ------------ ------------
Change in net assets 32,503 38,958 47,172 75,664
NET ASSETS:
Beginning of period 112,291 73,333 330,986 255,322
------------ ------------ ------------ ------------
End of period $ 144,794 $ 112,291 $ 378,158 $ 330,986
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ (336) $ -- $ 29 $ --
============ ============ ============ ============
DISCIPLINED LARGE CAP LIFEMODEL
VALUE FUND AGGRESSIVE FUND SM
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 3,821 $ 6,352 $ 880 $ 659
Net realized gains/(losses) on
investment transactions 19,467 19,590 (278)+ 642+
Realized gain distributions from
underlying funds -- -- 2,976 773
Net change in unrealized appreciation/
depreciation on investments 26,394 53,831 4,972 3,010
------------ ------------ ------------ ------------
Change in net assets resulting from operations 49,682 79,773 8,550 5,084
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (3,824) (6,088) (500) (386)
Class A Shares (114) (202) (311) (223)
Class B Shares (6) (13) (72) (55)
Class C Shares (3) (6) (9) (10)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares (16,850) (12,613) (346) (499)
Class A Shares (655) (566) (248) (309)
Class B Shares (134) (120) (81) (96)
Class C Shares (57) (40) (11) (19)
Advisor Shares NA NA NA NA
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (21,643) (19,648) (1,578) (1,597)
------------ ------------ ------------ ------------
Change in net assets from
Fund share transactions (23,846) 246,013 9,464 54,239
------------ ------------ ------------ ------------
Change in net assets 4,193 306,138 16,436 57,726
NET ASSETS:
Beginning of period 660,497 354,359 104,356 46,630
------------ ------------ ------------ ------------
End of period $ 664,690 $ 660,497 $ 120,792 $ 104,356
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ 366 $ 492 $ (12) $ --
============ ============ ============ ============
LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE FUND SM MODERATE FUND SM
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 2,132 $ 2,189 $ 5,474 $ 4,402
Net realized gains/(losses) on
investment transactions (9)+ 1,450+ (10)+ 1,610+
Realized gain distributions from
underlying funds 4,937 1,350 7,386 1,019
Net change in unrealized appreciation/
depreciation on investments 8,667 5,940 11,416 (1,694)
------------ ------------ ------------ ------------
Change in net assets resulting from operations 15,727 10,929 24,266 5,337
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (914) (1,006) (3,972) (2,668)
Class A Shares (945) (951) (1,125) (1,065)
Class B Shares (214) (169) (288) (250)
Class C Shares (41) (30) (52) (44)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares (537) (663) (768) (643)
Class A Shares (650) (707) (240) (561)
Class B Shares (257) (250) (93) (246)
Class C Shares (50) (39) (17) (40)
Advisor Shares NA NA NA NA
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (3,608) (3,815) (6,555) (5,517)
------------ ------------ ------------ ------------
Change in net assets from
Fund share transactions 33,028 107,096 21,594 341,253
------------ ------------ ------------ ------------
Change in net assets 45,147 114,210 39,305 341,073
NET ASSETS:
Beginning of period 224,685 110,475 457,568 116,495
------------ ------------ ------------ ------------
End of period $ 269,832 $ 224,685 $ 496,873 $ 457,568
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ 100 $ 82 $ 524 $ 487
============ ============ ============ ============
LIFEMODEL MODERATELY
CONSERVATIVE FUND SM
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2005 (A) 2004
------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,207 $ 1,854
Net realized gains/(losses) on
investment transactions (91)+ 1,320+
Realized gain distributions from
underlying funds 1,270 466
Net change in unrealized appreciation/
depreciation on investments 2,323 1,210
------------ ------------
Change in net assets resulting from operations 4,709 4,850
------------ ------------
Distributions from net investment income:
Institutional Shares (519) (867)
Class A Shares (474) (691)
Class B Shares (187) (217)
Class C Shares (29) (33)
Advisor Shares NA NA
Distributions from net realized gains:
Institutional Shares (301) (677)
Class A Shares (307) (563)
Class B Shares (173) (264)
Class C Shares (27) (30)
Advisor Shares NA NA
------------ ------------
Change in net assets from
shareholder distributions (2,017) (3,342)
------------ ------------
Change in net assets from
Fund share transactions 2,055 32,177
------------ ------------
Change in net assets 4,747 33,685
NET ASSETS:
Beginning of period 103,646 69,961
------------ ------------
End of period $ 108,393 $ 103,646
============ ============
Accumulated Net Investment Income/(Loss) $ 126 $ 128
============ ============
_________________
(a) Unaudited.
^ Represents fewer than five hundred dollars.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
104 - 105 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL STRATEGIC
CONSERVATIVE FUND SM INCOME FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004 (B)
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 785 $ 1,131 $ 3,840 $ 7,261
Net realized gains/(losses) on investment
and foreign currency transactions (11)+ 861+ 309 1,407
Net realized gains on futures transactions -- -- -- --
Realized gain distributions from underlying funds 544 172 -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency 600 (336) 5,254 878
------------ ------------ ------------ ------------
Change in net assets resulting from operations 1,918 1,828 9,403 9,546
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (238) (372) (2,101) (4,080)
Class A Shares (333) (430) (38) (9)
Class B Shares (142) (205) (12) (3)
Class C Shares (63) (89) (653) (1,584)
Advisor Shares NA NA (788) (1,704)
Distributions from net realized gains:
Institutional Shares (132) (187) (67) --
Class A Shares (197) (241) (2) --
Class B Shares (118) (163) (1) --
Class C Shares (52) (61) (26) --
Advisor Shares NA NA (28) --
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (1,275) (1,748) (3,716) (7,380)
------------ ------------ ------------ ------------
Change in net assets from
Fund share transactions 4,702 18,270 (2,019) 27,648
------------ ------------ ------------ ------------
Change in net assets 5,345 18,350 3,668 29,814
NET ASSETS:
Beginning of period 54,749 36,399 171,618 141,804
------------ ------------ ------------ ------------
End of period $ 60,094 $ 54,749 $ 175,286 $ 171,618
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ 102 $ 93 $ 79 $ (169)
============ ============ ============ ============
SELECT
STOCK FUND TECHNOLOGY FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (76) $ (191) $ (354) $ (632)
Net realized gains/(losses) on investment
and foreign currency transactions 325 1,542 1,522 7,023
Net realized gains on futures transactions -- -- -- --
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency 624 (34) 2,878 (11,739)
------------ ------------ ------------ ------------
Change in net assets resulting from operations 873 1,317 4,046 (5,348)
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares NA 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 -- -- -- --
------------ ------------ ------------ ------------
Change in net assets from
Fund share transactions (2,880) (7,739) (4,257) 16,375
------------ ------------ ------------ ------------
Change in net assets (2,007) (6,422) (211) 11,027
NET ASSETS:
Beginning of period 17,578 24,000 48,118 37,091
------------ ------------ ------------ ------------
End of period $ 15,571 $ 17,578 $ 47,907 $ 48,118
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ (76) $ -- $ (354) $ --
============ ============ ============ ============
INTERNATIONAL
EQUITY FUND BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 (C) 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 579 $ 1,994 $ 4,437 $ 8,735
Net realized gains/(losses) on investment
and foreign currency transactions 7,314 36,267 4,138 1,860
Net realized gains on futures transactions 492 2,518 -- --
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency 45,848 16,818 1,765 1,720
------------ ------------ ------------ ------------
Change in net assets resulting from operations 54,233 57,597 10,340 12,315
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (6,672) (3,876) (4,735) (10,360)
Class A Shares (407) (168) (363) (791)
Class B Shares (10) (2) (58) (158)
Class C Shares (7) (1) (10) (24)
Advisor Shares (186) (39) (11) (21)
Distributions from net realized gains:
Institutional Shares -- -- (317) --
Class A Shares -- -- (26) --
Class B Shares -- -- (5) --
Class C Shares -- -- (1) --
Advisor Shares -- -- (1) --
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (7,282) (4,086) (5,527) (11,354)
------------ ------------ ------------ ------------
Change in net assets from
Fund share transactions (13,070) 142,755 (40,707) (28,184)
------------ ------------ ------------ ------------
Change in net assets 33,881 196,266 (35,894) (27,223)
NET ASSETS:
Beginning of period 361,559 165,293 306,200 333,423
------------ ------------ ------------ ------------
End of period $ 395,440 $ 361,559 $ 270,306 $ 306,200
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ (2,701) $ 4,002 $ (691) $ 49
============ ============ ============ ============
INTERMEDIATE
BOND FUND
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2005 (A) 2004
------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 11,693 $ 24,279
Net realized gains/(losses) on investment
and foreign currency transactions 6,075 (5,790)
Net realized gains on futures transactions -- --
Realized gain distributions from underlying funds -- --
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency (1,276) 2,154
------------ ------------
Change in net assets resulting from operations 16,492 20,643
------------ ------------
Distributions from net investment income:
Institutional Shares (12,943) (27,582)
Class A Shares (703) (1,395)
Class B Shares (75) (145)
Class C Shares (24) (54)
Advisor Shares NA 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 (13,745) (29,176)
------------ ------------
Change in net assets from
Fund share transactions (96,150) (88,911)
------------ ------------
Change in net assets (93,403) (97,444)
NET ASSETS:
Beginning of period 719,446 816,890
------------ ------------
End of period $ 626,043 $ 719,446
============ ============
Accumulated Net Investment Income/(Loss) $ (1,858) $ 194
============ ============
___________________
(a) Unaudited.
(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/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
106 - 107 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
SHORT TERM BOND FUND BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 (B) 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 5,626 $ 9,740 $ 948 $ 1,809
Net realized gains/(losses) on investment transactions (254) 535 628 (181)
Net change in unrealized appreciation/depreciation
on investments (1,936) (3,782) (196) 516
------------ ------------ ------------ ------------
Change in net assets resulting from operations 3,436 6,493 1,380 2,144
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (7,852) (14,724) (524) (1,106)
Class A Shares (385) (898) (363) (726)
Class B Shares NA NA NA NA
Class C Shares (6) (7) (33) (102)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares -- -- -- (704)
Class A Shares -- -- -- (550)
Class B Shares NA NA NA NA
Class C Shares -- -- -- (122)
Advisor Shares NA NA NA NA
------------ ------------ ------------ ------------
Change in net assets from shareholder distributions (8,243) (15,629) (920) (3,310)
------------ ------------ ------------ ------------
Change in net assets from Fund share transactions (4,179) 8,991 (12,590) 8,319
------------ ------------ ------------ ------------
Change in net assets (8,986) (145) (12,130) 7,153
NET ASSETS:
Beginning of period 524,059 524,204 79,221 72,068
------------ ------------ ------------ ------------
End of period $ 515,073 $ 524,059 $ 67,091 $ 79,221
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ (2,545) $ 72 $ 75 $ 47
============ ============ ============ ============
INTERMEDIATE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 (B) 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,197 $ 2,937 $ 4,284 $ 9,990
Net realized gains/(losses) on investment transactions 804 2,753 1,636 2,428
Net change in unrealized appreciation/depreciation
on investments 253 (2,134) 199 (2,712)
------------ ------------ ------------ ------------
Change in net assets resulting from operations 2,254 3,556 6,119 9,706
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (1,121) (2,740) (5,431) (9,698)
Class A Shares (44) (97) (85) (157)
Class B Shares (23) (41) (25) (36)
Class C Shares (6) (14) (5) (13)
Advisor Shares (8) (15) NA NA
Distributions from net realized gains:
Institutional Shares (2,066) (1,116) (1,780) (2,509)
Class A Shares (89) (34) (30) (41)
Class B Shares (59) (21) (9) (11)
Class C Shares (16) (8) (2) (5)
Advisor Shares (17) (7) NA NA
------------ ------------ ------------ ------------
Change in net assets from shareholder distributions (3,449) (4,093) (7,367) (12,470)
------------ ------------ ------------ ------------
Change in net assets from Fund share transactions (4,280) (15,427) (27,991) (47,206)
------------ ------------ ------------ ------------
Change in net assets (5,475) (15,964) (29,239) (49,970)
NET ASSETS:
Beginning of period 62,424 78,388 261,140 311,110
------------ ------------ ------------ ------------
End of period $ 56,949 $ 62,424 $ 231,901 $ 261,140
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ 5 $ 10 $ (1,166) $ 96
============ ============ ============ ============
OHIO MICHIGAN
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,581 $ 5,793 $ 1,403 $ 3,506
Net realized gains/(losses) on investment transactions 402 1,533 132 (27)
Net change in unrealized appreciation/depreciation
on investments 734 (1,097) (181) (1,404)
------------ ------------ ------------ ------------
Change in net assets resulting from operations 3,717 6,229 1,354 2,075
------------ ------------ ------------ ------------
Distributions from net investment income:
Institutional Shares (2,024) (4,697) (1,303) (3,231)
Class A Shares (425) (779) (82) (186)
Class B Shares (55) (122) (12) (32)
Class C Shares (47) (125) (9) (51)
Advisor Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares (857) (354) (120) (167)
Class A Shares (200) (56) (8) (11)
Class B Shares (33) (13) (2) (3)
Class C Shares (29) (14) (1) (5)
Advisor Shares NA NA NA NA
------------ ------------ ------------ ------------
Change in net assets from shareholder distributions (3,670) (6,160) (1,537) (3,686)
------------ ------------ ------------ ------------
Change in net assets from Fund share transactions (7,827) (25,873) (18,022) (15,216)
------------ ------------ ------------ ------------
Change in net assets (7,780) (25,804) (18,205) (16,827)
NET ASSETS:
Beginning of period 162,347 188,151 116,023 132,850
------------ ------------ ------------ ------------
End of period $ 154,567 $ 162,347 $ 97,818 $ 116,023
============ ============ ============ ============
Accumulated Net Investment Income/(Loss) $ 55 $ 25 $ 5 $ 8
============ ============ ============ ============
______________________
(a) Unaudited.
(b) Reflects operations from the period from August 1, 2003 (date of
commencement of operations) to July 31, 2004 for Class C Shares.
SEE NOTES TO FINANCIAL STATEMENTS
108-109 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
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 27,615 $ 50,621 $ 43,144 $ 85,089
Dividends reinvested 39,477 35,609 -- --
Shares redeemed (57,781) (260,325) (53,592) (110,834)
------------ ------------ ------------ ------------
Total Institutional Shares 9,311 (174,095) (10,448) (25,745)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 931 15,183 1,893 65,226
Dividends reinvested 4,334 2,431 -- --
Shares redeemed (5,005) (6,598) (10,907) (54,394)
------------ ------------ ------------ ------------
Total Class A Shares 260 11,016 (9,014) 10,832
------------ ------------ ------------ ------------
Class B Shares
Shares issued 142 557 287 1,329
Dividends reinvested 320 160 -- --
Shares redeemed (194) (247) (840) (824)
------------ ------------ ------------ ------------
Total Class B Shares 268 470 (553) 505
------------ ------------ ------------ ------------
Class C Shares
Shares issued 23 680 109 625
Dividends reinvested 117 59 -- --
Shares redeemed (125) (296) (261) (552)
------------ ------------ ------------ ------------
Total Class C Shares 15 443 (152) 73
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 42 866 44 778
Dividends reinvested 213 84 -- --
Shares redeemed (77) (142) (103) (52)
------------ ------------ ------------ ------------
Total Advisor Shares 178 808 (59) 726
------------ ------------ ------------ ------------
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 $ 10,032 $ (161,358) $ (20,226) $ (13,609)
============ ============ ============ ============
QUALITY GROWTH FUND LARGE CAP CORE FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 53,852 $ 275,956 $ 1,098 $ 1,952
Dividends reinvested -- -- 2,282 329
Shares redeemed (214,127) (206,296) (21,851) (108,664)
------------ ------------ ------------ ------------
Total Institutional Shares (160,275) 69,660 (18,471) (106,383)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 4,041 50,886 1,501 7,505
Dividends reinvested -- -- 805 169
Shares redeemed (46,706) (46,916) (3,607) (6,098)
------------ ------------ ------------ ------------
Total Class A Shares (42,665) 3,970 (1,301) 1,576
------------ ------------ ------------ ------------
Class B Shares
Shares issued 440 2,939 73 257
Dividends reinvested -- -- 23 --^
Shares redeemed (2,823) (3,037) (66) (102)
------------ ------------ ------------ ------------
Total Class B Shares (2,383) (98) 30 155
------------ ------------ ------------ ------------
Class C Shares
Shares issued 180 1,416 9 141
Dividends reinvested -- -- 4 --^
Shares redeemed (1,941) (2,437) (19) (16)
------------ ------------ ------------ ------------
Total Class C Shares (1,761) (1,021) (6) 125
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 129 2,414 NA NA
Dividends reinvested -- -- NA NA
Shares redeemed (248) (402) NA NA
------------ ------------ ------------ ------------
Total Advisor Shares (119) 2,012 NA NA
------------ ------------ ------------ ------------
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 $ (207,203) $ 74,523 $ (19,748) $ (104,527)
============ ============ ============ ============
EQUITY INDEX FUND BALANCED FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (a) 2004 (b) 2005 (a) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 20,715 $ 87,452 $ 3,552 $ 8,464
Dividends reinvested 1,884 3,480 927 1,594
Shares redeemed (23,373) (528,617) (26,009) (99,029)
------------ ------------ ------------ ------------
Total Institutional Shares (774) (437,685) (21,530) (88,971)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 5,424 89,595 1,893 21,533
Dividends reinvested 744 875 706 780
Shares redeemed (10,652) (56,436) (13,093) (25,773)
------------ ------------ ------------ ------------
Total Class A Shares (4,484) 34,034 (10,494) (3,460)
------------ ------------ ------------ ------------
Class B Shares
Shares issued 502 1,357 209 882
Dividends reinvested 24 18 77 35
Shares redeemed (431) (282) (2,057) (2,545)
------------ ------------ ------------ ------------
Total Class B Shares 95 1,093 (1,771) (1,628)
------------ ------------ ------------ ------------
Class C Shares
Shares issued 607 1,058 97 736
Dividends reinvested 13 10 29 14
Shares redeemed (360) (947) (720) (2,111)
------------ ------------ ------------ ------------
Total Class C Shares 260 121 (594) (1,361)
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 295 1,142 26 104
Dividends reinvested 13 8 2 1
Shares redeemed (122) (217) (4) (39)
------------ ------------ ------------ ------------
Total Advisor Shares 186 933 24 66
------------ ------------ ------------ ------------
Select Shares
Shares issued 1,231 14,858 NA NA
Dividends reinvested 133 69 NA NA
Shares redeemed (1,082) (723) NA NA
------------ ------------ ------------ ------------
Total Select Shares 282 14,204 NA NA
------------ ------------ ------------ ------------
Preferred Shares
Shares issued 7,381 187,348 NA NA
Dividends reinvested 1,123 1,581 NA NA
Shares redeemed (103,173) (29,488) NA NA
------------ ------------ ------------ ------------
Total Preferred Shares (94,669) 159,441 NA NA
------------ ------------ ------------ ------------
Trust Shares
Shares issued 5,812 98,438 NA NA
Dividends reinvested 106 107 NA NA
Shares redeemed (11,627) (22,880) NA NA
------------ ------------ ------------ ------------
Total Trust Shares (5,709) 75,665 NA NA
------------ ------------ ------------ ------------
Change from capital transactions $ (104,813) $ (152,194) $ (34,365) $ (95,354)
============ ============ ============ ============
MICRO CAP VALUE FUND
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2005 (a) 2004
------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 4,557 $ 61,276
Dividends reinvested 9,657 7,200
Shares redeemed (26,480) (43,053)
------------ ------------
Total Institutional Shares (12,266) 25,423
------------ ------------
Class A Shares
Shares issued 611 30,015
Dividends reinvested 2,394 1,709
Shares redeemed (4,735) (15,638)
------------ ------------
Total Class A Shares (1,730) 16,086
------------ ------------
Class B Shares
Shares issued 2 1,947
Dividends reinvested 480 337
Shares redeemed (276) (843)
------------ ------------
Total Class B Shares 206 1,441
------------ ------------
Class C Shares
Shares issued 515 4,507
Dividends reinvested 371 167
Shares redeemed (583) (812)
------------ ------------
Total Class C Shares 303 3,862
------------ ------------
Advisor Shares
Shares issued 1,324 18,793
Dividends reinvested 2,517 1,930
Shares redeemed (4,705) (12,142)
------------ ------------
Total Advisor Shares (864) 8,581
------------ ------------
Select Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Select Shares NA NA
------------ ------------
Preferred Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Preferred Shares NA NA
------------ ------------
Trust Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Trust Shares NA NA
------------ ------------
Change from capital transactions $ (14,351) $ 55,393
============ ============
______________________
(a) Unaudited.
(b) 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
110-111 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
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,691 3,000 3,107 6,373
Dividends reinvested 2,753 2,101 -- --
Shares redeemed (3,809) (15,324) (3,926) (8,371)
------------ ------------ ------------ ------------
Total Institutional Shares 635 (10,223) (819) (1,998)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 62 908 140 5,213
Dividends reinvested 310 146 -- --
Shares redeemed (334) (399) (806) (4,318)
------------ ------------ ------------ ------------
Total Class A Shares 38 655 (666) 895
------------ ------------ ------------ ------------
Class B Shares
Shares issued 10 34 22 103
Dividends reinvested 23 10 -- --
Shares redeemed (13) (15) (65) (63)
------------ ------------ ------------ ------------
Total Class B Shares 20 29 (43) 40
------------ ------------ ------------ ------------
Class C Shares
Shares issued 1 40 9 50
Dividends reinvested 8 4 -- --
Shares redeemed (8) (18) (20) (44)
------------ ------------ ------------ ------------
Total Class C Shares 1 26 (11) 6
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 3 50 3 60
Dividends reinvested 15 5 -- --
Shares redeemed (5) (8) (8) (4)
------------ ------------ ------------ ------------
Total Advisor Shares 13 47 (5) 56
------------ ------------ ------------ ------------
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
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
NA NA NA NA
Total Preferred Shares ------------ ------------ ------------ ------------
NA NA NA NA
------------ ------------ ------------ ------------
Trust Shares
Shares issued
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
NA NA NA NA
Total Trust Shares ------------ ------------ ------------ ------------
NA NA NA NA
------------ ------------ ------------ ------------
Change from share transactions
707 (9,466) (1,544) (1,001)
============ ============ ============ ============
QUALITY GROWTH FUND LARGE CAP CORE FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 3,707 17,925 81 155
Dividends reinvested -- -- 164 25
Shares redeemed (14,193) (13,496) (1,594) (8,654)
------------ ------------ ------------ ------------
Total Institutional Shares (10,486) 4,429 (1,349) (8,474)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 277 3,405 115 597
Dividends reinvested -- -- 59 13
Shares redeemed (3,153) (3,092) (272) (469)
------------ ------------ ------------ ------------
Total Class A Shares (2,876) 313 (98) 141
------------ ------------ ------------ ------------
Class B Shares
Shares issued 32 196 5 21
Dividends reinvested -- -- 2 --^
Shares redeemed (199) (203) (5) (8)
------------ ------------ ------------ ------------
Total Class B Shares (167) (7) 2 13
------------ ------------ ------------ ------------
Class C Shares
Shares issued 13 97 1 11
Dividends reinvested -- -- --^ --^
Shares redeemed (139) (169) (1) (1)
------------ ------------ ------------ ------------
Total Class C Shares (126) (72) --^ 10
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 9 160 NA NA
Dividends reinvested -- -- NA NA
Shares redeemed (18) (27) NA NA
------------ ------------ ------------ ------------
Total Advisor Shares (9) 133 NA NA
------------ ------------ ------------ ------------
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 (13,664) 4,796 (1,445) (8,310)
============ ============ ============ ============
EQUITY INDEX BOND BALANCED BOND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 (B) 2005 (A) 2004
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 938 4,320 289 705
Dividends reinvested 84 170 74 132
Shares redeemed (1,049) (26,097) (2,118) (8,202)
------------ ------------ ------------ ------------
Total Institutional Shares (27) (21,607) (1,755) (7,365)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 254 4,550 154 1,826
Dividends reinvested 33 42 57 65
Shares redeemed (495) (2,879) (1,066) (2,145)
------------ ------------ ------------ ------------
Total Class A Shares (208) 1,713 (855) (254)
------------ ------------ ------------ ------------
Class B Shares
Shares issued 24 66 17 75
Dividends reinvested 1 1 6 3
Shares redeemed (20) (14) (170) (214)
------------ ------------ ------------ ------------
Total Class B Shares 5 53 (147) (136)
------------ ------------ ------------ ------------
Class C Shares
Shares issued 27 51 8 64
Dividends reinvested 1 --^ 2 1
Shares redeemed (16) (47) (60) (177)
------------ ------------ ------------ ------------
Total Class C Shares 12 4 (50) (112)
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 12 55 2 9
Dividends reinvested 1 --^ --^ --^
Shares redeemed (5) (10) --^ (3)
------------ ------------ ------------ ------------
Total Advisor Shares 8 45 2 6
------------ ------------ ------------ ------------
Select Shares
Shares issued 55 713 NA NA
Dividends reinvested 6 3 NA NA
Shares redeemed (49) (34) NA NA
------------ ------------ ------------ ------------
Total Select Shares 12 682 NA NA
------------ ------------ ------------ ------------
Preferred Shares
Shares issued 331 9,212 NA NA
Dividends reinvested 51 75 NA NA
Shares redeemed (4,593) (1,393) NA NA
------------ ------------ ------------ ------------
Total Preferred Shares (4,211) 7,894 NA NA
------------ ------------ ------------ ------------
Trust Shares
Shares issued 265 4,932 NA NA
Dividends reinvested 5 5 NA NA
Shares redeemed (535) (1,093) NA NA
------------ ------------ ------------ ------------
Total Trust Shares (265) 3,844 NA NA
------------ ------------ ------------ ------------
Change from share transactions (4,674) 7,372 (2,805) (7,861)
============ ============ ============ ============
MICRO CAP VALUE FUND
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2005 (A) 2004
------------ ------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 428 6,449
Dividends reinvested 915 770
Shares redeemed (2,501) (4,402)
------------ ------------
Total Institutional Shares (1,158) 2,817
------------ ------------
Class A Shares
Shares issued 61 3,254
Dividends reinvested 231 186
Shares redeemed (456) (1,621)
------------ ------------
Total Class A Shares (164) 1,819
------------ ------------
Class B Shares
Shares issued --^ 215
Dividends reinvested 47 37
Shares redeemed (27) (89)
------------ ------------
Total Class B Shares 20 163
------------ ------------
Class C Shares
Shares issued 50 485
Dividends reinvested 37 18
Shares redeemed (58) (84)
------------ ------------
Total Class C Shares 29 419
------------ ------------
Advisor Shares
Shares issued 129 2,019
Dividends reinvested 245 211
Shares redeemed (455) (1,262)
------------ ------------
Total Advisor Shares (81) 968
------------ ------------
Select Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Select Shares NA NA
------------ ------------
Preferred Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Preferred Shares NA NA
------------ ------------
Trust Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Trust Shares NA NA
------------ ------------
Change from share transactions (1,354) 6,186
============ ============
______________________
(a) Unaudited.
(b) 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
112 -113
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED --
FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND MULTI CAP VALUE FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (a) 2004 2005 (a) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 35,645 $ 56,630 $ 42,804 $ 84,532
Dividends reinvested 10,515 3,940 14,989 751
Shares redeemed (12,971) (36,181) (31,149) (66,562)
------------ ------------ ------------ ------------
Total Institutional Shares 33,189 24,389 26,644 18,721
------------ ------------ ------------ ------------
Class A Shares
Shares issued 600 2,347 4,777 15,347
Dividends reinvested 184 29 1,900 102
Shares redeemed (548) (331) (6,423) (5,995)
------------ ------------ ------------ ------------
Total Class A Shares 236 2,045 254 9,454
------------ ------------ ------------ ------------
Class B Shares
Shares issued 364 428 1,256 3,955
Dividends reinvested 55 8 1,133 51
Shares redeemed (75) (41) (1,699) (1,772)
------------ ------------ ------------ ------------
Total Class B Shares 344 395 690 2,234
------------ ------------ ------------ ------------
Class C Shares
Shares issued 164 702 1,532 1,961
Dividends reinvested 44 17 213 7
Shares redeemed (179) (182) (541) (537)
------------ ------------ ------------ ------------
Total Class C Shares 29 537 1,204 1,431
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 146 1,481 1,057 7,464
Dividends reinvested 129 21 2,250 128
Shares redeemed (134) (120) (3,173) (11,525)
------------ ------------ ------------ ------------
Total Advisor Shares 141 1,382 134 (3,933)
------------ ------------ ------------ ------------
Change from capital transactions $ 33,939 $ 28,748 $ 28,926 $ 27,907
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,709 2,856 1,755 3,830
Dividends reinvested 529 206 629 35
Shares redeemed (643) (1,846) (1,322) (3,042)
------------ ------------ ------------ ------------
Total Institutional Shares 1,595 1,216 1,062 823
------------ ------------ ------------ ------------
Class A Shares
Shares issued 30 117 205 704
Dividends reinvested 9 2 81 5
Shares redeemed (27) (17) (272) (269)
------------ ------------ ------------ ------------
Total Class A Shares 12 102 14 440
------------ ------------ ------------ ------------
Class B Shares
Shares issued 19 21 55 181
Dividends reinvested 3 --^ 49 2
Shares redeemed (4) (2) (75) (82)
------------ ------------ ------------ ------------
Total Class B Shares 18 19 29 101
------------ ------------ ------------ ------------
Class C Shares
Shares issued 8 35 67 90
Dividends reinvested 2 1 9 --^
Shares redeemed (8) (9) (24) (25)
------------ ------------ ------------ ------------
Total Class C Shares 2 27 52 65
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 7 74 45 347
Dividends reinvested 7 1 96 6
Shares redeemed (7) (6) (137) (527)
------------ ------------ ------------ ------------
Total Advisor Shares 7 69 4 (174)
------------ ------------ ------------ ------------
Change from share transactions 1,634 1,433 1,161 1,255
============ ============ ============ ============
DISCIPLINED LARGE CAP LIFEMODEL
VALUE FUND AGGRESSIVE FUND SM
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 54,713 $ 300,125 $ 10,941 $ 32,676
Dividends reinvested 17,425 13,643 837 881
Shares redeemed (96,889) (74,461) (5,864) (16,370)
------------ ------------ ------------ ------------
Total Institutional Shares (24,751) 239,307 5,914 17,187
------------ ------------ ------------ ------------
Class A Shares
Shares issued 4,090 17,304 6,263 31,283
Dividends reinvested 690 725 547 522
Shares redeemed (4,093) (12,995) (4,486) (4,416)
------------ ------------ ------------ ------------
Total Class A Shares 687 5,034 2,324 27,389
------------ ------------ ------------ ------------
Class B Shares
Shares issued 607 1,325 2,271 8,856
Dividends reinvested 132 127 148 149
Shares redeemed (643) (562) (1,193) (702)
------------ ------------ ------------ ------------
Total Class B Shares 96 890 1,226 8,303
------------ ------------ ------------ ------------
Class C Shares
Shares issued 380 1,013 412 2,038
Dividends reinvested 53 43 20 29
Shares redeemed (311) (274) (432) (707)
------------ ------------ ------------ ------------
Total Class C Shares 122 782 --^ 1,360
------------ ------------ ------------ ------------
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 $ (23,846) $ 246,013 $ 9,464 $ 54,239
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 3,922 23,119 840 2,568
Dividends reinvested 1,242 1,091 63 70
Shares redeemed (6,830) (5,812) (444) (1,324)
------------ ------------ ------------ ------------
Total Institutional Shares (1,666) 18,398 459 1,314
------------ ------------ ------------ ------------
Class A Shares
Shares issued 293 1,340 489 2,486
Dividends reinvested 49 58 41 42
Shares redeemed (291) (979) (347) (347)
------------ ------------ ------------ ------------
Total Class A Shares 51 419 183 2,181
------------ ------------ ------------ ------------
Class B Shares
Shares issued 43 100 179 710
Dividends reinvested 9 10 11 12
Shares redeemed (46) (43) (94) (56)
------------ ------------ ------------ ------------
Total Class B Shares 6 67 96 666
------------ ------------ ------------ ------------
Class C Shares
Shares issued 27 80 33 164
Dividends reinvested 4 3 1 2
Shares redeemed (23) (21) (35) (57)
------------ ------------ ------------ ------------
Total Class C Shares 8 62 (1) 109
------------ ------------ ------------ ------------
Advisor Shares
Shares issued
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
NA NA NA NA
Total Advisor Shares ------------ ------------ ------------ ------------
NA NA NA NA
------------ ------------ ------------ ------------
Change from share transactions
(1,601) 18,946 737 4,270
============ ============ ============ ============
LIFEMODEL
MODERATELY LIFEMODEL
AGGRESSIVE FUND SM MODERATE FUND SM
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 15,657 $ 42,003 $ 36,540 $ 293,587
Dividends reinvested 1,413 1,625 4,690 3,255
Shares redeemed (4,177) (27,861) (28,941) (51,038)
------------ ------------ ------------ ------------
Total Institutional Shares 12,893 15,767 12,289 245,804
------------ ------------ ------------ ------------
Class A Shares
Shares issued 22,903 72,485 20,618 83,406
Dividends reinvested 1,556 1,637 1,343 1,608
Shares redeemed (8,259) (15,784) (16,354) (17,065)
------------ ------------ ------------ ------------
Total Class A Shares 16,200 58,338 5,607 67,949
------------ ------------ ------------ ------------
Class B Shares
Shares issued 6,431 28,608 5,746 24,584
Dividends reinvested 460 414 366 485
Shares redeemed (3,474) (2,663) (2,796) (3,637)
------------ ------------ ------------ ------------
Total Class B Shares 3,417 26,359 3,316 21,432
------------ ------------ ------------ ------------
Class C Shares
Shares issued 2,006 7,547 1,877 7,079
Dividends reinvested 89 67 63 83
Shares redeemed (1,577) (982) (1,558) (1,094)
------------ ------------ ------------ ------------
Total Class C Shares 518 6,632 382 6,068
------------ ------------ ------------ ------------
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 $ 33,028 $ 107,096 $ 21,594 $ 341,253
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,205 3,306 3,057 24,802
Dividends reinvested 107 130 392 279
Shares redeemed (322) (2,252) (2,427) (4,399)
------------ ------------ ------------ ------------
Total Institutional Shares 990 1,184 1,022 20,682
------------ ------------ ------------ ------------
Class A Shares
Shares issued 1,794 5,785 1,746 7,162
Dividends reinvested 118 131 112 139
Shares redeemed (641) (1,234) (1,386) (1,450)
------------ ------------ ------------ ------------
Total Class A Shares 1,271 4,682 472 5,851
------------ ------------ ------------ ------------
Class B Shares
Shares issued 507 2,279 490 2,123
Dividends reinvested 35 33 31 42
Shares redeemed (271) (212) (238) (312)
------------ ------------ ------------ ------------
Total Class B Shares 271 2,100 283 1,853
------------ ------------ ------------ ------------
Class C Shares
Shares issued 157 601 158 612
Dividends reinvested 7 5 5 7
Shares redeemed (125) (78) (133) (94)
------------ ------------ ------------ ------------
Total Class C Shares 39 528 30 525
------------ ------------ ------------ ------------
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 2,571 8,494 1,807 28,911
============ ============ ============ ============
LIFEMODEL MODERATELY
CONSERVATIVE FUND SM
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2005 (A) 2004
------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 4,536 $ 16,845
Dividends reinvested 795 1,496
Shares redeemed (3,659) (21,740)
------------ ------------
Total Institutional Shares 1,672 (3,399)
------------ ------------
Class A Shares
Shares issued 4,752 28,373
Dividends reinvested 753 1,236
Shares redeemed (6,435) (8,496)
------------ ------------
Total Class A Shares (930) 21,113
------------ ------------
Class B Shares
Shares issued 3,090 13,543
Dividends reinvested 340 459
Shares redeemed (2,289) (2,100)
------------ ------------
Total Class B Shares 1,141 (11,902)
------------ ------------
Class C Shares
Shares issued 915 3,424
Dividends reinvested 54 62
Shares redeemed (797) (925)
------------ ------------
Total Class C Shares 172 2,561
------------ ------------
Advisor Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Advisor Shares NA NA
------------ ------------
Change from capital transactions $ 2,055 $ 32,177
============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 407 1,512
Dividends reinvested 71 136
Shares redeemed (329) (1,976)
------------ ------------
Total Institutional Shares 149 (328)
------------ ------------
Class A Shares
Shares issued 429 2,555
Dividends reinvested 67 112
Shares redeemed (582) (765)
------------ ------------
Total Class A Shares (86) 1,902
------------ ------------
Class B Shares
Shares issued 282 1,227
Dividends reinvested 30 42
Shares redeemed (207) (190)
------------ ------------
Total Class B Shares 105 1,079
------------ ------------
Class C Shares
Shares issued 82 310
Dividends reinvested 5 6
Shares redeemed (72) (84)
------------ ------------
Total Class C Shares 15 232
------------ ------------
Advisor Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Advisor Shares NA NA
------------ ------------
Change from share transactions 183 2,885
============ ============
_______________________
(a) Unaudited.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
114-115 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED --
FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL
CONSERVATIVE FUND SM STRATEGIC INCOME FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (a) 2004 2005 (a) 2004 (b)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 3,219 $ 6,828 $ 13,545 $ 48,821
Shares issued in merger -- -- -- --
Dividends reinvested 360 544 360 645
Shares redeemed (1,778) (9,370) (10,471) (27,289)
------------ ------------ ------------ ------------
Total Institutional Shares 1,801 (1,998) 3,434 22,177
------------ ------------ ------------ ------------
Class A Shares
Shares issued 8,245 17,121 1,868 1,045
Shares issued in merger -- -- -- --
Dividends reinvested 497 653 29 4
Shares redeemed (4,991) (6,620) (338) (104)
------------ ------------ ------------ ------------
Total Class A Shares 3,751 11,154 1,559 945
------------ ------------ ------------ ------------
Class B Shares
Shares issued 1,371 7,782 537 387
Shares issued in merger -- -- -- --
Dividends reinvested 240 343 8 1
Shares redeemed (1,591) (3,428) (40) (4)
------------ ------------ ------------ ------------
Total Class B Shares 20 4,697 505 384
------------ ------------ ------------ ------------
Class C Shares
Shares issued 764 6,320 1,347 21,878
Shares issued in merger -- -- -- --
Dividends reinvested 110 145 533 1,233
Shares redeemed (1,744) (2,048) (7,418) (22,066)
------------ ------------ ------------ ------------
Total Class C Shares (870) 4,417 (5,538) 1,045
------------ ------------ ------------ ------------
Advisor Shares
Shares issued NA NA 2,335 19,845
Shares issued in merger NA NA -- --
Dividends reinvested NA NA 717 1,446
Shares redeemed NA NA (5,031) (18,194)
------------ ------------ ------------ ------------
Total Advisor Shares NA NA (1,979) 3,097
------------ ------------ ------------ ------------
Change from capital transactions $ 4,702 $ 18,270 $ (2,019) $ 27,648
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 298 627 1,181 4,351
Shares issued in merger -- -- -- --
Dividends reinvested 33 51 31 58
Shares redeemed (164) (865) (913) (2,449)
------------ ------------ ------------ ------------
Total Institutional Shares 167 (187) 299 1,960
------------ ------------ ------------ ------------
Class A Shares
Shares issued 771 1,581 163 95
Shares issued in merger -- -- -- --
Dividends reinvested 46 61 3 --^
Shares redeemed (464) (610) (30) (9)
------------ ------------ ------------ ------------
Total Class A Shares 353 1,032 136 86
------------ ------------ ------------ ------------
Class B Shares
Shares issued 128 723 46 35
Shares issued in merger -- -- -- --
Dividends reinvested 22 32 1 --^
Shares redeemed (148) (318) (3) --^
------------ ------------ ------------ ------------
Total Class B Shares 2 437 44 35
------------ ------------ ------------ ------------
Class C Shares
Shares issued 71 586 118 1,953
Shares issued in merger -- -- -- --
Dividends reinvested 10 13 47 111
Shares redeemed (162) (190) (652) (2,003)
------------ ------------ ------------ ------------
Total Class C Shares (81) 409 (487) 61
------------ ------------ ------------ ------------
Advisor Shares
Shares issued NA NA 204 1,756
Shares issued in merger NA NA -- --
Dividends reinvested NA NA 63 129
Shares redeemed NA NA (441) (1,631)
------------ ------------ ------------ ------------
Total Advisor Shares NA NA (174) 254
------------ ------------ ------------ ------------
Change from share transactions 441 1,691 (182) 2,396
============ ============ ============ ============
SELECT
STOCK FUND TECHNOLOGY FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 334 $ 1,352 $ 3,960 $ 25,660
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (950) (9,672) (7,025) (13,544)
------------ ------------ ------------ ------------
Total Institutional Shares (616) (8,320) (3,065) 12,116
------------ ------------ ------------ ------------
Class A Shares
Shares issued 662 3,212 866 7,293
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (2,760) (2,524) (1,657) (4,677)
------------ ------------ ------------ ------------
Total Class A Shares (2,098) 688 (791) 2,616
------------ ------------ ------------ ------------
Class B Shares
Shares issued 8 147 69 940
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (130) (71) (196) (549)
------------ ------------ ------------ ------------
Total Class B Shares (122) 76 (127) 391
------------ ------------ ------------ ------------
Class C Shares
Shares issued 9 20 68 1,882
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (53) (203) (319) (886)
------------ ------------ ------------ ------------
Total Class C Shares (44) (183) (251) 996
------------ ------------ ------------ ------------
Advisor Shares
Shares issued NA NA 34 402
Shares issued in merger NA NA -- --
Dividends reinvested NA NA -- --
Shares redeemed NA NA (57) (146)
------------ ------------ ------------ ------------
Total Advisor Shares NA NA (23) 256
------------ ------------ ------------ ------------
Change from capital transactions $ (2,880) $ (7,739) $ (4,257) $ 16,375
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 17 69 446 2,375
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (49) (501) (782) (1,326)
------------ ------------ ------------ ------------
Total Institutional Shares (32) (432) (336) 1,049
------------ ------------ ------------ ------------
Class A Shares
Shares issued 36 167 98 694
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (145) (129) (189) (449)
------------ ------------ ------------ ------------
Total Class A Shares (109) 38 (91) 245
------------ ------------ ------------ ------------
Class B Shares
Shares issued -- ^ 8 9 93
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (6) (4) (24) (54)
------------ ------------ ------------ ------------
Total Class B Shares (6) 4 (15) 39
------------ ------------ ------------ ------------
Class C Shares
Shares issued -- ^ 1 7 181
Shares issued in merger -- -- -- --
Dividends reinvested -- -- -- --
Shares redeemed (2) (11) (38) (92)
------------ ------------ ------------ ------------
Total Class C Shares (2) (10) (31) 89
------------ ------------ ------------ ------------
Advisor Shares
Shares issued NA NA 3 39
Shares issued in merger NA NA -- --
Dividends reinvested NA NA -- --
Shares redeemed NA NA (6) (15)
------------ ------------ ------------ ------------
Total Advisor Shares NA NA (3) 24
------------ ------------ ------------ ------------
Change from share transactions (149) (400) (476) 1,446
============ ============ ============ ============
INTERNATIONAL
EQUITY FUND BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (a) 2004 (c) 2005 (a) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 51,763 $ 104,241 $ 12,343 $ 84,603
Shares issued in merger -- 172,761 -- --
Dividends reinvested 2,185 2,209 1,731 2,983
Shares redeemed (64,518) (163,646) (49,714) (114,066)
------------ ------------ ------------ ------------
Total Institutional Shares (10,570) 115,565 (35,640) (26,480)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 2,645 16,084 1,571 10,586
Shares issued in merger -- 5,153 -- --
Dividends reinvested 384 165 337 684
Shares redeemed (5,094) (6,195) (6,544) (9,430)
------------ ------------ ------------ ------------
Total Class A Shares (2,065) 15,207 (4,636) 1,840
------------ ------------ ------------ ------------
Class B Shares
Shares issued 137 379 97 426
Shares issued in merger -- 70 -- --
Dividends reinvested 10 2 55 138
Shares redeemed (36) (65) (575) (3,535)
------------ ------------ ------------ ------------
Total Class B Shares 111 386 (423) (2,971)
------------ ------------ ------------ ------------
Class C Shares
Shares issued 100 374 72 87
Shares issued in merger -- 379 -- --
Dividends reinvested 6 1 10 23
Shares redeemed (58) (557) (113) (596)
------------ ------------ ------------ ------------
Total Class C Shares 48 197 (31) (486)
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 233 765 53 134
Shares issued in merger -- 15,823 -- --
Dividends reinvested 175 37 9 15
Shares redeemed (1,002) (5,225) (39) (236)
------------ ------------ ------------ ------------
Total Advisor Shares (594) 11,400 23 (87)
------------ ------------ ------------ ------------
Change from capital transactions $ (13,070) $ 142,755 $ (40,707) $ (28,184)
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 5,260 11,779 1,214 8,270
Shares issued in merger -- 19,982 -- --
Dividends reinvested 211 252 170 295
Shares redeemed (6,331) (17,582) (4,891) (11,327)
------------ ------------ ------------ ------------
Total Institutional Shares (860) 14,431 (3,507) (2,762)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 265 1,835 155 1,051
Shares issued in merger -- 595 -- --
Dividends reinvested 37 19 33 68
Shares redeemed (508) (687) (645) (934)
------------ ------------ ------------ ------------
Total Class A Shares (206) 1,762 (457) 185
------------ ------------ ------------ ------------
Class B Shares
Shares issued 14 41 11 42
Shares issued in merger -- 8 -- --
Dividends reinvested 1 -- ^ 5 14
Shares redeemed (4) (7) (57) (351)
------------ ------------ ------------ ------------
Total Class B Shares 11 42 (41) (295)
------------ ------------ ------------ ------------
Class C Shares
Shares issued 10 45 7 9
Shares issued in merger -- 45 -- --
Dividends reinvested 1 -- ^ 1 2
Shares redeemed (6) (69) (11) (59)
------------ ------------ ------------ ------------
Total Class C Shares 5 21 (3) (48)
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 22 81 6 13
Shares issued in merger -- 1,826 -- --
Dividends reinvested 17 4 1 2
Shares redeemed (100) (583) (4) (24)
------------ ------------ ------------ ------------
Total Advisor Shares (61) 1,328 3 (9)
------------ ------------ ------------ ------------
Change from share transactions (1,111) 17,584 (4,005) (2,929)
============ ============ ============ ============
INTERMEDIATE
BOND FUND
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2005 (A) 2004
------------ --------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 27,207 $ 207,569
Shares issued in merger -- --
Dividends reinvested 2,487 7,249
Shares redeemed (121,398) (302,980)
------------ ------------
Total Institutional Shares (91,704) (88,162)
------------ ------------
Class A Shares
Shares issued 1,567 16,139
Shares issued in merger -- --
Dividends reinvested 551 1,110
Shares redeemed (6,021) (15,769)
------------ ------------
Total Class A Shares (3,903) 1,480
------------ ------------
Class B Shares
Shares issued -- 147
Shares issued in merger -- --
Dividends reinvested 66 128
Shares redeemed (383) (1,819)
------------ ------------
Total Class B Shares (317) (1,544)
------------ ------------
Class C Shares
Shares issued 128 543
Shares issued in merger -- --
Dividends reinvested 20 43
Shares redeemed (374) (1,271)
------------ ------------
Total Class C Shares (226) (685)
------------ ------------
Advisor Shares
Shares issued NA NA
Shares issued in merger NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Advisor Shares NA NA
------------ ------------
Change from capital transactions $ (96,150) $ (88,911)
============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,719 20,481
Shares issued in merger -- --
Dividends reinvested 249 718
Shares redeemed (12,125) (30,042)
------------ ------------
Total Institutional Shares (9,157) (8,843)
------------ ------------
Class A Shares
Shares issued 156 1,594
Shares issued in merger -- --
Dividends reinvested 55 110
Shares redeemed (601) (1,561)
------------ ------------
Total Class A Shares (390) 143
------------ ------------
Class B Shares
Shares issued -- 15
Shares issued in merger -- --
Dividends reinvested 7 13
Shares redeemed (39) (182)
------------ ------------
Total Class B Shares (32) (154)
------------ ------------
Class C Shares
Shares issued 13 54
Shares issued in merger -- --
Dividends reinvested 2 4
Shares redeemed (37) (126)
------------ ------------
Total Class C Shares (22) (68)
------------ ------------
Advisor Shares
Shares issued NA NA
Shares issued in merger NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
------------ ------------
Total Advisor Shares NA NA
------------ ------------
Change from share transactions (9,601) (8,922)
============ ============
______________________
(a) Unaudited.
(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
116 -117 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
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 (B) 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 84,099 $ 232,770 $ 3,941 $ 12,659
Dividends reinvested 1,592 4,831 280 1,326
Shares redeemed (86,259) (223,970) (13,467) (20,172)
------------ ------------ ------------ ------------
Total Institutional Shares (568) 13,631 (9,246) (6,187)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 2,369 15,629 819 29,119
Dividends reinvested 326 756 354 1,236
Shares redeemed (6,367) (21,560) (3,837) (10,195)
------------ ------------ ------------ ------------
Total Class A Shares (3,672) (5,175) (2,664) 20,160
------------ ------------ ------------ ------------
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 122 757 139 306
Dividends reinvested 5 6 27 190
Shares redeemed (66) (228) (846) (6,150)
------------ ------------ ------------ ------------
Total Class C Shares 61 535 (680) (5,654)
------------ ------------ ------------ ------------
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 $ (4,179) $ 8,991 $ (12,590) $ 8,319
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 8,791 24,026 387 1,242
Dividends reinvested 167 498 27 130
Shares redeemed (9,031) (23,028) (1,320) (1,964)
------------ ------------ ------------ ------------
Total Institutional Shares (73) 1,496 (906) (592)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 249 1,611 80 2,837
Dividends reinvested 34 78 35 121
Shares redeemed (669) (2,221) (376) (992)
------------ ------------ ------------ ------------
Total Class A Shares (386) (532) (261) 1,966
------------ ------------ ------------ ------------
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 12 78 14 30
Dividends reinvested 1 1 3 19
Shares redeemed (7) (24) (84) (605)
------------ ------------ ------------ ------------
Total Class C Shares 6 55 (67) (556)
------------ ------------ ------------ ------------
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 (453) 1,019 (1,234) 818
============ ============ ============ ============
INTERMEDIATE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 2,521 $ 7,893 $ 2,676 $ 18,353
Dividends reinvested 2,081 1,219 1,861 2,688
Shares redeemed (8,270) (25,329) (31,111) (68,066)
------------ ------------ ------------ ------------
Total Institutional Shares (3,668) (16,217) (26,574) (47,025)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 33 7,061 26 6,508
Dividends reinvested 76 98 81 162
Shares redeemed (758) (6,586) (1,249) (6,460)
------------ ------------ ------------ ------------
Total Class A Shares (649) 573 (1,142) 210
------------ ------------ ------------ ------------
Class B Shares
Shares issued 152 397 -- 376
Dividends reinvested 67 45 27 38
Shares redeemed (213) (102) (152) (196)
------------ ------------ ------------ ------------
Total Class B Shares 6 340 (125) 218
------------ ------------ ------------ ------------
Class C Shares
Shares issued 51 135 11 83
Dividends reinvested 13 17 6 17
Shares redeemed (50) (332) (167) (709)
------------ ------------ ------------ ------------
Total Class C Shares 14 (180) (150) (609)
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 10 87 NA NA
Dividends reinvested 17 15 NA NA
Shares redeemed (10) (45) NA NA
------------ ------------ ------------ ------------
Total Advisor Shares 17 57 NA NA
------------ ------------ ------------ ------------
Change from capital transactions $ (4,280) $ (15,427) $ (27,991) $ (47,206)
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 243 745 253 1,706
Dividends reinvested 205 115 177 251
Shares redeemed (797) (2,400) (2,939) (6,381)
------------ ------------ ------------ ------------
Total Institutional Shares (349) (1,540) (2,509) (4,424)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 3 668 2 608
Dividends reinvested 7 9 8 15
Shares redeemed (73) (622) (118) (603)
------------ ------------ ------------ ------------
Total Class A Shares (63) 55 (108) 20
------------ ------------ ------------ ------------
Class B Shares
Shares issued 15 38 -- 35
Dividends reinvested 7 4 3 4
Shares redeemed (21) (10) (15) (18)
------------ ------------ ------------ ------------
Total Class B Shares 1 32 (12) 21
------------ ------------ ------------ ------------
Class C Shares
Shares issued 5 13 1 8
Dividends reinvested 1 2 1 2
Shares redeemed (5) (32) (16) (67)
------------ ------------ ------------ ------------
Total Class C Shares 1 (17) (14) (57)
------------ ------------ ------------ ------------
Advisor Shares
Shares issued 1 9 NA NA
Dividends reinvested 1 1 NA NA
Shares redeemed (1) (4) NA NA
------------ ------------ ------------ ------------
Total Advisor Shares 1 6 NA NA
------------ ------------ ------------ ------------
Change from share transactions (409) (1,464) (2,643) (4,440)
============ ============ ============ ============
OHIO MICHIGAN
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2005 (A) 2004 2005 (A) 2004
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 929 $ 5,948 $ 3,105 $ 25,275
Dividends reinvested 883 416 203 446
Shares redeemed (11,608) (31,734) (18,676) (37,741)
------------ ------------ ------------ ------------
Total Institutional Shares (9,796) (25,370) (15,368) (12,020)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 2,878 16,923 17 1,995
Dividends reinvested 250 473 67 146
Shares redeemed (696) (15,435) (1,519) (2,774)
------------ ------------ ------------ ------------
Total Class A Shares 2,432 1,961 (1,435) (633)
------------ ------------ ------------ ------------
Class B Shares
Shares issued 80 853 34 350
Dividends reinvested 74 107 9 24
Shares redeemed (356) (1,340) (265) (792)
------------ ------------ ------------ ------------
Total Class B Shares (202) (380) (222) (418)
------------ ------------ ------------ ------------
Class C Shares
Shares issued 185 82 34 254
Dividends reinvested 68 121 10 39
Shares redeemed (514) (2,287) (1,041) (2,438)
------------ ------------ ------------ ------------
Total Class C Shares (261) (2,084) (997) (2,145)
------------ ------------ ------------ ------------
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 $ (7,827) $ (25,873) $ (18,022) $ (15,216)
============ ============ ============ ============
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 89 564 304 2,454
Dividends reinvested 85 39 20 43
Shares redeemed (1,113) (3,016) (1,828) (3,667)
------------ ------------ ------------ ------------
Total Institutional Shares (939) (2,413) (1,504) (1,170)
------------ ------------ ------------ ------------
Class A Shares
Shares issued 275 1,607 2 196
Dividends reinvested 24 45 7 14
Shares redeemed (66) (1,480) (150) (269)
------------ ------------ ------------ ------------
Total Class A Shares 233 172 (141) (59)
------------ ------------ ------------ ------------
Class B Shares
Shares issued 8 83 3 34
Dividends reinvested 7 10 1 2
Shares redeemed (35) (130) (26) (76)
------------ ------------ ------------ ------------
Total Class B Shares (20) (37) (22) (40)
------------ ------------ ------------ ------------
Class C Shares
Shares issued 18 8 3 25
Dividends reinvested 7 12 1 4
Shares redeemed (50) (220) (102) (237)
------------ ------------ ------------ ------------
Total Class C Shares (25) (200) (98) (208)
------------ ------------ ------------ ------------
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 (751) (2,478) (1,765) (1,477)
============ ============ ============ ============
________________________
(a) Unaudited.
(b) 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
118-119 Spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 January 31, 2005, 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 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
120
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
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. The Micro Cap Value Fund is closed to all investors with the exception
of certain "qualified" retirement plans. Class B Shares of the Intermediate Bond
Fund and Intermediate Municipal Bond Fund are closed for purchases to all
investors.
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.
121
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
(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.
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 as reported by the underlying investment company. 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.
122
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
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.
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
$4,464,481 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.
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 their total assets 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
123
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
investments are recorded as assets of the Funds, offset by a corresponding
liability to repay the cash at the termination of the loan. Fixed income
securities received as collateral are not recorded as an asset or liability of
the Fund because the Fund does not have effective control of such securities.
There may be risks of delay in recovery of the securities or even loss of rights
in the collateral should the borrower of the securities fail financially.
However, loans will be made only to borrowers deemed by the Advisor to be of
good standing and creditworthy under guidelines established by the Trustees and
when, in the judgment of the Advisor, the consideration which can be earned
currently from such securities loans justifies the attendant risks. Loans are
subject to termination by the Funds or the borrower at any time, and are,
therefore, not considered to be illiquid investments.
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 six
months ended January 31, 2005, the Equity Index Fund and Short Term Bond Fund
realized $54,186,774 of net gain and $38,878 of net loss on $85,666,327 and
$14,113,251 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.
124
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 Fund SM, 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.
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, 0.17% of the average
daily net assets of the Trust between $2 billion and $15 billion, and 0.15% of
more than $15 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 29, 2004 through January 31, 2005, 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% 0.78% 0.76%
Class A Shares 1.17% 1.50% 1.70% 1.03% 1.01%
Class B Shares 1.92% 2.25% 2.45% 1.78% 1.76%
Class C Shares 1.92% 2.25% 2.45% 1.78% 1.76%
Advisor Shares NA 1.75% NA 1.28% NA
Amount subject to recoupment
expiring on November 28, 2005. $ 24 $ -- $ 10 $ 61 $ 65
125
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MICHIGAN
SHORT TERM MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
---------- --------- ---------
Institutional Shares 0.73% 0.77% 0.68%
Class A Shares 0.98% 1.02% 0.93%
Class B Shares NA 1.77% 1.68%
Class C Shares 1.73% 1.77% 1.68%
Advisor Shares NA 1.27% NA
Amount subject to recoupment
expiring on November 28, 2005 $ 26 $ 24 $ 19
For the period from October 20, 2003 for the Equity Index Fund, August 1, 2002
for the LifeModel Funds and November 10, 2003 for the International Equity Fund
through January 31, 2005, the expense limits currently in place and the
cumulative reimbursement that may potentially be made by the Funds is as follows
(Amounts in thousands):
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. $ 2,907 $ 686 $ 1,295 $ 1,927
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. $ 749 $ 508 $ 290
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 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 six months ended January 31, 2005, the Distributor received
$1,849,914 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
$1,179,102 to affiliated broker-dealers of the Funds.
126
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
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 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.
TRANSFER AND DIVIDEND DISBURSING AGENT--Fifth Third served as transfer and
dividend disbursing agent for the period prior to October 1, 2004. Transfer
Agent fees for the period from August 1, 2004 through October 31, 2004 were
computed at 0.0225% of the average daily net assets of each Funds' shares. In
addition, there was an annual fee of $7,500 per additional class of shares per
Fund. Effective October 1, 2004, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"),
a wholly owned subsidiary of The BISYS Group, Inc., began serving as transfer
and dividend disbursing agent. Pursuant to a separate agreement, BISYS Ohio
retained the Advisor to perform certain services for the Trust and each
investment portfolio of the Trust, for which the Advisor will receive a fee from
BISYS Ohio computed as a percentage of the average daily net assets of each
Fund. Effective November 1, 2004, transfer agent fees are computed at 0.0195% of
the average daily net assets of each Funds' shares up to $700 million, 0.017% of
the average daily net assets of each Funds' shares between $700 million and $1
billion, 0.0155% of the average daily net assets of each Funds' shares between
$1 billion and $2 billion and 0.013% of more than $2 billion of the average
daily net assets of all Funds with the exception of the Equity Index Fund,
LifeModel Aggressive Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel
Moderate Fund SM, LifeModel Moderately Conservative Fund SM and the LifeModel
Conservative Fund SM. For the Equity Index Fund, LifeModel Aggressive Fund SM,
LifeModel Moderately Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel
Moderately Conservative Fund SM and the LifeModel Conservative Fund SM, transfer
agent fees are computed at 0.0185% of the average daily net assets of each
Funds' shares up to $700 million, 0.017% of the average daily net assets of each
Funds' shares between $700 million and $1 billion, 0.0155% of the average daily
net assets of each Funds' shares between $1 billion and $2 billion and 0.0125%
of more than $2 billion of the average daily net assets of each Funds' shares.
In addition, there is an annual fee of $3,000 per additional class of shares per
Fund.
ACCOUNTING AND CUSTODY FEES--Fifth Third 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.
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 Ohio performs
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.
127
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities for the
period ended January 31, 2005, were as follows (Amounts in thousands):
PURCHASES SALES
--------- ---------
Small Cap Growth Fund $ 62,387 $ 103,845
Mid Cap Growth Fund 123,395 138,694
Quality Growth Fund 281,282 483,941
Large Cap Core Fund 26,442 46,515
Equity Index Fund 7,859 27,637
Balanced Fund 123,377 155,188
Micro Cap Value Fund 13,811 31,635
Small Cap Value Fund 87,211 60,639
Multi Cap Value Fund 41,147 32,025
Disciplined Large Cap Value Fund 59,603 103,722
LifeModel Aggressive Fund SM 24,302 13,075
LifeModel Moderately Aggressive Fund SM 64,053 28,292
LifeModel Moderate Fund SM 88,944 63,758
LifeModel Moderately Conservative Fund SM 15,053 15,385
LifeModel Conservative Fund SM 17,984 12,152
Strategic Income Fund 21,339 24,960
Select Stock Fund 1,163 4,322
Technology Fund 81,363 86,021
International Equity Fund 38,548 36,771
Bond Fund 500,870 541,485
Intermediate Bond Fund 259,343 297,609
Short Term Bond Fund 172,270 174,627
U.S. Government Bond Fund 69,025 73,108
Municipal Bond Fund 15,826 20,855
Intermediate Municipal Bond Fund 71,761 98,277
Ohio Municipal Bond Fund 8,897 15,584
Michigan Municipal Bond Fund 3,088 22,168
128
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 six months ended January 31, 2005, there were no
borrowings against the line of credit.
(7) 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 January 31, 2005. 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.
129
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
Six months ended 1/31/05+ $ 15.48 (0.05) 1.78 1.73
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 15.18 (0.07) 1.75 1.68
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 15.02 (0.12) 1.71 1.59
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 15.03 (0.13) 1.73 1.60
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 15.25 (0.08) 1.74 1.66
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 12.96 (0.04) 1.48 1.44
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 12.72 (0.06) 1.45 1.39
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 12.38 (0.10) 1.40 1.30
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 11.94 (0.10) 1.35 1.25
--------- ------------- -------------- -----------
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
Six months ended 1/31/05+ $ 12.65 (0.07) 1.43 1.36
--------- ------------- -------------- -----------
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)
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (2.87) (2.87) $ 14.34 11.19%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (2.87) (2.87) $ 13.99 11.01%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (2.87) (2.87) $ 13.74 10.57%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (2.87) (2.87) $ 13.76 10.65%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (2.87) (2.87) $ 14.04 10.89%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.40 11.11%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.11 10.93%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 13.68 10.50%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 13.19 10.47%*
---------- -------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.01 10.75%*
---------- -------- ------------- ------- ---------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000's) ASSETS NET ASSETS ASSETS (a) RATE (b)
--------- --------- ------------- ---------- ---------
Small Cap Growth Fund Institutional Shares
Year ended 12/31/99 $ 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%
Six months ended 1/31/05+ $ 216,100 1.01%** (0.73%)** 1.01%** 24%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 24,413 1.26%** (0.98%)** 1.26%** 24%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,908 2.01%** (1.73%)** 2.01%** 24%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 760 2.01%** (1.73%)** 2.01%** 24%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,264 1.51%** (1.23%)** 1.51%** 24%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 361,166 1.08%** (0.52%)** 1.08%** 31%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 45,600 1.33%** (0.76%)** 1.33%** 31%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 6,850 2.08%** (1.51%)** 2.08%** 31%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,723 2.08%** (1.51%)** 2.08%** 31%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,002 1.58%** (1.01%)** 1.58%** 31%
--------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
130 - 131 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
Six months ended 1/31/05+ $ 14.61 0.04 0.44 0.48
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 14.38 0.02 0.43 0.45
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 13.99 (0.04) 0.42 0.38
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 13.63 (0.04) 0.41 0.37
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 14.29 --^ 0.43 0.43
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 13.20 0.11 1.06 1.17
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 13.04 0.09 1.04 1.13
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 13.08 0.04 1.06 1.10
--------- ------------- ------------- ----------
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
Six months ended 1/31/05+ $ 13.08 0.04 1.05 1.09
--------- ------------- ------------- ----------
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%
Six months ended 1/31/05+ -- -- -- $ 15.09 3.29%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.83 3.13%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.37 2.72%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.00 2.71%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ -- -- -- $ 14.72 3.01%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ (0.11) (0.35) (0.46) $ 13.91 8.91%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ (0.09) (0.35) (0.44) $ 13.73 8.72%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ (0.05) (0.35) (0.40) $ 13.78 8.31%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ (0.04) (0.35) (0.39) $ 13.78 8.38%*
--------- ---------- ------------- -------- ---------
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%
Six months ended 1/31/05+ $ 752,956 1.07%** 0.52%** 1.07%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 185,210 1.32%** 0.26%** 1.32%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 19,124 2.07%** (0.50%)** 2.07%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 5,973 2.07%** 0.50%)** 2.07%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 3,094 1.57%** 0.00%** 1.57%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 76,308 0.92%** 1.54%** 1.05%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 25,592 1.17%** 1.27%** 1.30%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 856 1.92%** 0.51%** 2.05%** 25%
--------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 160 1.92%** 0.53%** 2.05%** 25%
--------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
132 - 133 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
--------- ------------ ------------- ----------
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
Six months ended 1/31/05+ $ 21.01 0.24@ 1.46 1.70
--------- ------------ ------------- ----------
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
Six months ended 1/31/05+ $ 20.94 0.21@ 1.45 1.66
--------- ------------ ------------- ----------
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
Six months ended 1/31/05+ $ 20.83 0.13@ 1.43 1.56
--------- ------------ ------------- ----------
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
Six months ended 1/31/05+ $ 20.84 0.12@ 1.44 1.56
--------- ------------ ------------- ----------
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
Six months ended 1/31/05+ $ 20.92 0.18@ 1.45 1.63
--------- ------------ ------------- ----------
EQUITY INDEX FUND SELECT SHARES
10/20/03 (d) to 7/31/04 $ 19.86 0.22@ 1.18 1.40
Six months ended 1/31/05+ $ 21.00 0.23@ 1.46 1.69
--------- ------------ ------------- ----------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03 (d) to 7/31/04 $ 19.86 0.22@ 1.18 1.40
Six months ended 1/31/05+ $ 21.01 0.24@ 1.43 1.67
--------- ------------ ------------- ----------
EQUITY INDEX FUND TRUST SHARES
10/20/03 (d) to 7/31/04 $ 19.86 0.20@ 1.18 1.38
Six months ended 1/31/05+ $ 21.01 0.21@ 1.45 1.66
--------- ------------ ------------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
-----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
--------- ---------- ------------- --------- ---------
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%
Six months ended 1/31/05+ (0.26) -- (0.26) $ 22.45 8.09%*
--------- ---------- ------------- --------- --------
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%
Six months ended 1/31/05+ (0.23) -- (0.23) $ 22.37 7.93%*
--------- ---------- ------------- --------- --------
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%
Six months ended 1/31/05+ (0.15) -- (0.15) $ 22.24 7.49%*
--------- ---------- ------------- --------- --------
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%
Six months ended 1/31/05+ (0.15) -- (0.15) $ 22.25 7.48%*
--------- ---------- ------------- --------- --------
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%
Six months ended 1/31/05+ (0.20) -- (0.20) $ 22.35 7.81%*
--------- ---------- ------------- --------- --------
EQUITY INDEX FUND SELECT SHARES
10/20/03 (d) to 7/31/04 (0.26) -- (0.26) $ 21.00 7.03%*
Six months ended 1/31/05+ (0.25) -- (0.25) $ 22.44 8.05%*
--------- ---------- ------------- --------- --------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03 (d) to 7/31/04 (0.25) -- (0.25) $ 21.01 7.03%*
Six months ended 1/31/05+ (0.24) -- (0.24) $ 22.44 7.93%*
--------- ---------- ------------- --------- --------
EQUITY INDEX FUND TRUST SHARES
10/20/03 (d) to 7/31/04 (0.23) -- (0.23) $ 21.01 6.95%*
Six months ended 1/31/05+ (0.23) -- (0.23) $ 22.44 7.90%*
--------- ---------- ------------- --------- --------
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%
Six months ended 1/31/05+ $ 206,340 0.19%** 2.16%** 0.61%** 2%
--------- ---------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 73,275 0.44%** 1.91%** 0.85%** 2%
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 1,315 1.40%** 0.08%** 1.57%** 9%
Year ended 7/31/03 $ 2,409 1.40% 0.40% 1.57% 2%
Year ended 7/31/04 $ 3,776 1.23% 0.44% 1.60% 14%
Six months ended 1/31/05+ $ 4,140 1.19%** 1.16%** 1.61%** 2%
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 635 1.41%** 0.11%** 1.58%** 9%
Year ended 7/31/03 $ 1,711 1.40% 0.39% 1.57% 2%
Year ended 7/31/04 $ 1,990 1.23% 0.44% 1.60% 14%
Six months ended 1/31/05+ $ 2,390 1.19%** 1.11%** 1.61%** 2%
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 7 0.82%** 0.62%** 0.88%** 9%
Year ended 7/31/03 $ 327 0.90% 0.84% 1.06% 2%
Year ended 7/31/04 $ 1,296 0.71% 0.94% 1.11% 14%
Six months ended 1/31/05+ $ 1,570 0.69%** 1.67%** 1.11%** 2%
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND SELECT SHARES
10/20/03 (d) to 7/31/04 $ 14,315 0.27%** 1.32%** 0.69%** 14%
Six months ended 1/31/05+ $ 15,581 0.27%** 2.07%** 0.68%** 2%
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03 (d) to 7/31/04 $ 165,845 0.34%** 1.31%** 0.76%** 14%
Six months ended 1/31/05+ $ 82,642 0.34%** 2.23%** 0.75%** 2%
--------- ---------- ------------- ---------- ---------
EQUITY INDEX FUND TRUST SHARES
10/20/03 (d) to 7/31/04 $ 80,759 0.44%** 1.22%** 0.86%** 14%
Six months ended 1/31/05+ $ 80,316 0.44%** 1.90%** 0.85%** 2%
--------- ---------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
134-135 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
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.00 0.13 0.63 0.76
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.93 0.12 0.62 0.74
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.80 0.07 0.61 0.68
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.78 0.07 0.61 0.68
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.91 0.09 0.62 0.71
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
-----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
---------- --------- ------------- --------- ---------
BALANCED FUND INSTITUTIONAL SHARES
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%
Six months ended 1/31/05+ (0.14) -- (0.14) $ 12.62 6.39%*
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ (0.13) -- (0.13) $ 12.54 6.19%*
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ (0.08) -- (0.08) $ 12.40 5.78%*
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ (0.08) -- (0.08) $ 12.38 5.79%*
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ (0.11) -- (0.11) $ 12.51 6.01%*
---------- --------- ------------- --------- ---------
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)
---------- ---------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 81,169 1.02%** 2.09%** 1.16%** 73%
---------- ---------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 67,318 1.27%** 1.85%** 1.41%** 73%
---------- ---------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 11,961 2.02%** 1.03%** 2.16%** 73%
---------- ---------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 4,360 2.02%** 1.08%** 2.16%** 73%
---------- ---------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 209 1.52%** 1.56%** 1.66%** 73%
---------- ---------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
136 - 137 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
Six months ended 1/31/05+ $ 10.32 --^ 1.30 1.30
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.14 (0.02) 1.29 1.27
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.96 (0.01) 1.25 1.24
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.96 (0.01) 1.25 1.24
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.09 (0.01) 1.27 1.26
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 20.01 (0.04) 1.68 1.64
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 19.95 (0.08) 1.68 1.60
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 19.76 (0.12) 1.64 1.52
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 19.74 (0.15) 1.66 1.51
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 19.89 (0.10) 1.68 1.58
--------- ------------- -------------- ----------
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%
Six months ended 1/31/05+ -- (0.72) (0.72) $ 10.90 12.82%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (0.72) (0.72) $ 10.69 12.75%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (0.72) (0.72) $ 10.48 12.68%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (0.72) (0.72) $ 10.48 12.68%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (0.72) (0.72) $ 10.63 12.72%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (1.66) (1.66) $ 19.99 8.26%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (1.66) (1.66) $ 19.89 8.08%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (1.66) (1.66) $ 19.62 7.69%*
---------- --------- ------------- ------- ---------
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) $ 19.74 18.85%
Six months ended 1/31/05+ -- (1.66) (1.66) $ 19.59 7.71%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ -- (1.66) (1.66) $ 19.81 8.00%*
---------- --------- ------------- ------- ---------
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%
Six months ended 1/31/05+ $ 151,985 1.33%** (0.03%)** 1.33%** 6%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 41,880 1.58%** (0.28%)** 1.58%** 6%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 7,514 1.58%** (0.29%)** 2.33%** 6%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 6,230 1.58%** (0.28%)** 2.33%** 6%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 42,872 1.58%** (0.28%)** 1.83%** 6%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 139,112 1.25%** (0.51%)** 1.25%** 52%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 2,511 1.50%** (0.76%)** 1.50%** 52%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 840 2.25%** (1.51%)** 2.25%** 52%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 594 2.25%** (1.52%)** 2.25%** 52%
---------- --------- ------------- --------- ---------
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%
Six months ended 1/31/05+ $ 1,737 1.75%** (1.01%)** 1.75%** 52%
---------- --------- ------------- --------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
138 - 139 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
Six months ended 1/31/05+ $ 22.58 0.05 2.72 2.77
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 22.36 0.02 2.69 2.71
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 21.94 (0.07) 2.64 2.57
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 21.93 (0.06) 2.62 2.56
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 22.29 (0.01) 2.67 2.66
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 13.52 0.08 0.94 1.02
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 13.50 0.06 0.94 1.00
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 13.61 0.01 0.95 0.96
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 13.40 0.01 0.94 0.95
--------- ------------- -------------- ----------
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%
Six months ended 1/31/05+ (0.04) (1.38) -- (1.42) $23.93 12.28%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.01) (1.38) -- (1.39) $23.68 12.14%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- (1.38) -- (1.38) $23.13 11.71%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- (1.38) -- (1.38) $23.11 11.67%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- (1.38) -- (1.38) $23.57 11.94%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.08) (0.39) -- (0.47) $14.07 7.60%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.07) (0.39) -- (0.46) $14.04 7.42%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.02) (0.39) -- (0.41) $14.16 7.04%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.02) (0.39) -- (0.41) $13.94 7.09%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ $ 274,616 1.29%** 0.40%** 1.29%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 35,441 1.54%** 0.16%** 1.54%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 20,494 2.29%** (0.60%)** 2.29%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 5,214 2.29%** (0.61%)** 2.29%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 42,393 1.79%** (0.10%)** 1.79%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 634,243 1.06%** 1.16%** 1.06%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 23,331 1.31%** 0.90%** 1.31%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 5,090 2.06%** 0.16%** 2.06%** 10%
---------- -------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 2,026 2.06%** 0.15%** 2.06%** 10%
---------- -------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
140 - 141 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
Six months ended 1/31/05+ $ 12.49 0.11# 0.88# 0.99
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.45 0.10# 0.88# 0.98
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.30 0.05# 0.87# 0.92
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.30 0.05# 0.87# 0.92
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.48 0.13# 0.72# 0.85
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.47 0.12# 0.70# 0.82
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.42 0.07# 0.70# 0.77
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 12.41 0.07# 0.70# 0.77
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.57 0.14# 0.48# 0.62
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.56 0.13# 0.47# 0.60
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.51 0.09# 0.47# 0.56
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.51 0.08# 0.47# 0.55
--------- ------------- -------------- ----------
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%
Six months ended 1/31/05+ (0.11) (0.08) (0.19) $13.29 7.91%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.10) (0.08) (0.18) $13.25 7.81%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.07) (0.08) (0.15) $13.07 7.43%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.07) (0.08) (0.15) $13.07 7.41%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.13) (0.08) (0.21) $13.12 6.75%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.11) (0.08) (0.19) $13.10 6.56%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.06) (0.08) (0.14) $13.05 6.19%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.06) (0.08) (0.14) $13.04 6.19%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.14) (0.03) (0.17) $12.02 5.37%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.13) (0.03) (0.16) $12.00 5.17%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.09) (0.03) (0.12) $11.95 4.80%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.08) (0.03) (0.11) $11.95 4.78%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ $ 61,534 0.08%** 1.78%** 0.47%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 43,125 0.33%** 1.50%** 0.72%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 14,113 1.08%** 0.77%** 1.47%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 2,020 1.08%** 0.74%** 1.47%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 99,466 0.08%** 2.01%** 0.44%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 116,226 0.33%** 1.77%** 0.69%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 45,184 1.08%** 1.01%** 1.44%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 8,956 1.08%** 1.01%** 1.44%** 12%
---------- -------- ------------- ---------- ----------
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%
Six months ended 1/31/05+ $ 339,491 0.08%** 2.43%** 0.41%** 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%
Six months ended 1/31/05+ $ 107,728 0.33%** 2.16%** 0.66%** 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%
Six months ended 1/31/05+ $ 41,566 1.08%** 1.43%** 1.41%** 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%
Six months ended 1/31/05+ $ 8,088 1.08%** 1.42%** 1.41%** 14%
---------- -------- ------------- ---------- ----------
SEE NOTES TO FINANCIAL HIGHLIGHTS
142 - 143 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 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
Six months ended 1/31/05+ $ 10.95 0.15# 0.38# 0.53
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.93 0.14# 0.37# 0.51
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.90 0.09# 0.37# 0.46
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.90 0.09# 0.38# 0.47
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUNDSM 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
Six months ended 1/31/05+ $ 10.66 0.16# 0.21# 0.37
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUNDSM 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
Six months ended 1/31/05+ $ 10.64 0.15# 0.21# 0.36
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUNDSM 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
Six months ended 1/31/05+ $ 10.61 0.11# 0.21# 0.32
--------- ------------- -------------- ----------
LIFEMODEL CONSERVATIVE FUNDSM 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
Six months ended 1/31/05+ $ 10.61 0.12# 0.20# 0.32
--------- ------------- -------------- ----------
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 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%
Six months ended 1/31/05+ (0.15) (0.09) (0.24) $11.24 4.79%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.13) (0.09) (0.22) $11.22 4.65%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.09) (0.09) (0.18) $11.18 4.20%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.09) (0.09) (0.18) $11.19 4.28%*
---------- -------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ (0.16) (0.09) (0.25) $10.78 3.53%*
---------- -------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ (0.15) (0.09) (0.24) $10.76 3.41%*
---------- -------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ (0.11) (0.09) (0.20) $10.73 3.02%*
---------- -------- ------------- ------ ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ (0.11) (0.09) (0.20) $10.73 3.01%*
---------- -------- ------------- ------ ---------
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 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%
Six months ended 1/31/05+ $ 40,758 0.08%* 2.61%* 0.48%* 14%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 40,958 0.33%* 2.35%* 0.73%* 14%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 22,838 1.08%* 1.62%* 1.48%* 14%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 3,839 1.08%* 1.59%* 1.48%* 14%
-------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ $ 16,149 0.08%* 3.06%* 0.56%* 21%
-------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ $ 24,485 0.33%* 2.82%* 0.81%* 21%
-------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ $ 13,692 1.08%* 2.07%* 1.56%* 21%
-------- --------- ------------- ---------- ---------
LIFEMODEL CONSERVATIVE FUNDSM 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%
Six months ended 1/31/05+ $ 5,768 1.08%* 2.06%* 1.56%* 21%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
144 - 145 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
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.15 0.27 0.36 0.63
--------- ------------- -------------- ----------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 $ 11.65 0.17 (0.54) (0.37)
Six months ended 1/31/05+ $ 11.12 0.26 0.36 0.62
--------- ------------- -------------- ----------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 $ 11.65 0.15 (0.54) (0.39)
Six months ended 1/31/05+ $ 11.12 0.22 0.36 0.58
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.05 0.21 0.37 0.58
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 11.12 0.23 0.37 0.60
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 19.10 (0.07)@ 1.14 1.07
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 18.82 (0.09)@ 1.11 1.02
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 18.51 (0.16)@ 1.09 0.93
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 18.01 (0.16)@ 1.07 0.91
--------- ------------- -------------- ----------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
--------------------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET RETURN DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED OF AND END OF SALES
INCOME GAINS CAPITAL DISTRIBUTIONS PERIOD CHARGE)
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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%
Six months ended 1/31/05+ (0.25) (0.01) -- (0.26) $11.52 5.69%*
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 (0.16) -- -- (0.16) $11.12 (3.15%)*
Six months ended 1/31/05+ (0.24) (0.01) -- (0.25) $11.49 5.57%*
---------- -------- ------- ------------- ------ ---------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 (0.14) -- -- (0.14) $11.12 (3.36%)*
Six months ended 1/31/05+ (0.20) (0.01) -- (0.21) $11.49 5.18%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.20) (0.01) -- (0.21) $11.42 5.12%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.22) (0.01) -- (0.23) $11.49 5.44%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- -- -- -- $20.17 5.60%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- -- -- -- $19.84 5.42%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- -- -- -- $19.44 5.02%*
---------- -------- ------- ------------- ------ ---------
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%
Six months ended 1/31/05+ -- -- -- -- $18.92 5.05%*
---------- -------- ------- ------------- ------ ---------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000's) ASSETS NET ASSETS ASSETS (a) RATE (b)
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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%
Six months ended 1/31/05+ $97,470 1.34%** 4.69%** 1.34%** 13%
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 $ 954 1.63%** 5.02%** 1.63%** 36%
Six months ended 1/31/05+ $ 2,554 1.60%** 4.54%** 1.60%** 13%
------- --------- ------------- ---------- ---------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 $ 389 2.37%** 4.27%** 2.37%** 36%
Six months ended 1/31/05+ $ 911 2.35%** 3.78%** 2.35%** 13%
------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $35,041 2.34%** 3.66%** 2.34%** 13%
------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $39,310 1.84%** 4.18%** 1.84%** 13%
------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 6,925 1.45%** (0.72%)** 1.82%** 7%
------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 7,740 1.70%** (0.97%)** 2.07%** 7%
------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 344 2.45%** (1.72%)** 2.82%** 7%
------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 562 2.45%** (1.72%)** 2.82%** 7%
------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
146 - 147 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)
Six months ended 1/31/05+ $ 8.46 (0.06) 0.80 0.74
--------- ------------- -------------- ----------
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)
Six months ended 1/31/05+ $ 8.38 (0.07) 0.78 0.71
--------- ------------- -------------- ----------
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)
Six months ended 1/31/05+ $ 8.14 (0.10) 0.76 0.66
--------- ------------- -------------- ----------
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)
Six months ended 1/31/05+ $ 8.11 (0.11) 0.77 0.66
--------- ------------- -------------- ----------
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)
Six months ended 1/31/05+ $ 8.31 (0.09) 0.79 0.70
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.32 0.03 1.34 1.37
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.33 0.01 1.35 1.36
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.23 (0.03) 1.33 1.30
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 8.99 (0.03) 1.30 1.27
--------- ------------- -------------- ----------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 8.67 0.02@ 0.65 0.67
Six months ended 1/31/05+ $ 9.31 --^ 1.34 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)
---------- -------- ------------- ------ ---------
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%)
Six months ended 1/31/05+ -- -- -- $ 9.20 8.75%*
---------- -------- ------------- ------ ---------
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%)
Six months ended 1/31/05+ -- -- -- $ 9.09 8.47%*
---------- -------- ------------- ------ ---------
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%)
Six months ended 1/31/05+ -- -- -- $ 8.80 8.11%*
---------- -------- ------------- ------ ---------
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%)
Six months ended 1/31/05+ -- -- -- $ 8.77 8.00%*
---------- -------- ------------- ------ ---------
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%)
Six months ended 1/31/05+ -- -- -- $ 9.01 8.29%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.20) -- (0.20) $10.49 14.71%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.17) -- (0.17) $10.52 14.63%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.11) -- (0.11) $10.42 14.13%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.11) -- (0.11) $10.15 14.13%*
---------- -------- ------------- ------ ---------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 (0.03) -- (0.03) $ 9.31 7.70%*
Six months ended 1/31/05+ (0.15) -- (0.15) $10.50 14.38%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ $ 37,735 1.57%** (1.34%)** 1.57%** 168%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 6,880 1.82%** (1.59%)** 1.82%** 168%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,413 2.57%** (2.34%)** 2.57%** 168%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,634 2.57%** (2.34%)** 2.57%** 168%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 245 2.07%** (1.84%)** 2.07%** 168%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $356,686 1.35%** 0.33%** 1.40%** 10%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 23,759 1.60%** 0.09%** 1.65%** 10%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,007 2.35%** (0.68%)** 2.40%** 10%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 679 2.35%** (0.68%)** 2.40%** 10%
-------- --------- ------------- ---------- ---------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 12,360 1.85%** 0.31%** 1.92%** 50%
Six months ended 1/31/05+ $ 13,309 1.85%** (0.17%)** 1.90%** 10%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
148 - 149 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
Six months ended 1/31/05+ $ 10.02 0.16 0.21 0.37
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.02 0.14 0.20 0.34
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.02 0.10 0.20 0.30
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.02 0.10 0.20 0.30
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.02 0.13 0.20 0.33
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.93 0.18 0.06 0.24
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.95 0.16 0.07 0.23
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.90 0.16 0.06 0.22
--------- ------------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.92 0.13 0.06 0.19
--------- ------------- -------------- ----------
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%
Six months ended 1/31/05+ (0.19) (0.01) (0.20) $10.19 3.69%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.17) (0.01) (0.18) $10.18 3.46%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.13) (0.01) (0.14) $10.18 3.07%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.13) (0.01) (0.14) $10.18 3.07%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.16) (0.01) (0.17) $10.18 3.34%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.21) -- (0.21) $ 9.96 2.41%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.19) -- (0.19) $ 9.99 2.36%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.19) -- (0.19) $ 9.93 2.27%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.16) -- (0.16) $ 9.95 1.89%*
---------- -------- ------------- ------ ---------
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)
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $246,439 0.79%** 3.09%** 0.91%** 182%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 18,267 1.04%** 2.84%** 1.16%** 182%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 4,161 1.79%** 2.09%** 1.91%** 182%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 750 1.79%** 2.09%** 1.91%** 182%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 689 1.29%** 2.59%** 1.41%** 182%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $587,235 0.76%** 3.48%** 0.82%** 43%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 33,728 1.01%** 3.24%** 1.07%** 43%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 3,680 1.01%** 3.23%** 1.82%** 43%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,400 1.76%** 2.49%** 1.82%** 43%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
150 - 151 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
Six months ended 1/31/05+ $ 9.57 0.10@ (0.04) 0.06
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 9.56 0.09@ (0.04) 0.05
--------- ---------- -------------- ----------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 $ 9.75 0.09@ (0.06) 0.03
Six months ended 1/31/05+ $ 9.56 0.05@ (0.04) 0.01
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.12 0.14 0.05 0.19
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.13 0.12 0.05 0.17
--------- ---------- -------------- ----------
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
Six months ended 1/31/05+ $ 10.05 0.09 0.05 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%
Six months ended 1/31/05+ (0.15) -- (0.15) $ 9.48 0.62%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.14) -- (0.14) $ 9.47 0.48%*
---------- -------- ------------- ------ ---------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 (0.22) -- (0.22) $ 9.56 0.39%*
Six months ended 1/31/05+ (0.10) -- (0.10) $ 9.47 0.11%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.14) -- (0.14) $10.17 1.84%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.12) -- (0.12) $10.18 1.71%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.09) -- (0.09) $10.10 1.35%*
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000's) ASSETS NET ASSETS ASSETS (a) RATE (b)
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $490,136 0.74%** 2.13%** 0.76%** 35%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 24,355 0.99%** 1.88%** 1.01%** 35%
-------- --------- ------------- ---------- ---------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 $ 526 1.74%** 0.97%** 1.77%** 90%
Six months ended 1/31/05+ $ 582 1.74%** 1.12%** 1.76%** 35%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 34,840 0.78%** 2.70%** 0.93%** 100%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 28,652 1.03%** 2.46%** 1.18%** 100%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 3,599 1.78%** 1.70%** 1.93%** 100%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL STATEMENTS
152 - 153 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
Six months ended 1/31/05+ $ 10.40 0.21 0.17 0.38
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.43 0.20 0.18 0.38
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.37 0.16 0.17 0.33
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.38 0.16 0.17 0.33
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.39 0.19 0.17 0.36
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.53 0.18@ 0.08 0.26
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.54 0.17@ 0.06 0.23
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.51 0.17@ 0.07 0.24
---------- ---------- ---------------- ----------
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
Six months ended 1/31/05+ $ 10.53 0.13@ 0.07 0.20
---------- ---------- ---------------- ----------
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%
Six months ended 1/31/05+ (0.21) (0.39) (0.60) $10.18 3.75%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.20) (0.39) (0.59) $10.22 3.71%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.16) (0.39) (0.55) $10.15 3.24%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.16) (0.39) (0.55) $10.16 3.23%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.19) (0.39) (0.58) $10.17 3.51%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.24) (0.08) (0.32) $10.47 2.47%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.22) (0.08) (0.30) $10.47 2.23%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.22) (0.08) (0.30) $10.45 2.33%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.18) (0.08) (0.26) $10.47 1.93%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ $ 52,877 0.78%** 3.98%** 1.02%** 27%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,763 1.03%** 3.74%** 1.27%** 27%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,500 1.78%** 2.98%** 2.02%** 27%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 369 1.78%** 2.98%** 2.02%** 27%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 440 1.28%** 3.48%** 1.52%** 27%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $227,228 0.68%** 3.44%** 0.85%** 30%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 3,319 0.93%** 3.20%** 1.10%** 30%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,138 0.93%** 3.19%** 1.85%** 30%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 216 1.68%** 2.44%** 1.85%** 30%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
154 - 155 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
Six months ended 1/31/05+ $ 10.39 0.17 0.07 0.24
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.39 0.16 0.07 0.23
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.18 0.12 0.06 0.18
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.35 0.12 0.07 0.19
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.17 0.14 (0.01) 0.13
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.16 0.13 (0.01) 0.12
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.16 0.09 (0.01) 0.08
--------- ------------ -------------- -----------
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
Six months ended 1/31/05+ $ 10.16 0.08 (0.01) 0.07
--------- ------------ -------------- -----------
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%
Six months ended 1/31/05+ (0.17) (0.07) (0.24) $10.39 2.37%
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.16) (0.07) (0.23) $10.39 2.26%
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.12) (0.07) (0.19) $10.17 1.82%
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.12) (0.07) (0.19) $10.35 1.86%
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.14) (0.01) (0.15) $10.15 1.27%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.13) (0.01) (0.14) $10.14 1.21%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.09) (0.01) (0.10) $10.14 0.77%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ (0.08) (0.01) (0.09) $10.14 0.76%*
---------- -------- ------------- ------ ---------
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%
Six months ended 1/31/05+ $116,594 0.78%** 3.31%** 0.86%** 6%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 29,391 1.03%** 3.05%** 1.11%** 6%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 4,512 1.78%** 2.30%** 1.86%** 6%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 4,070 1.78%** 2.30%** 1.86%** 6%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 89,819 0.69%** 2.63%** 0.79%** 3%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 5,850 0.84%** 2.48%** 0.94%** 3%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 1,349 1.69%** 1.63%** 1.79%** 3%
-------- --------- ------------- ---------- ---------
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%
Six months ended 1/31/05+ $ 800 1.69%** 1.64%** 1.79%** 3%
-------- --------- ------------- ---------- ---------
SEE NOTES TO FINANCIAL HIGHLIGHTS
156 - 157 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 and 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.
+ Unaudited.
^ Amount is less than $0.005 per share.
* Not annualized.
** Annualized.
# Represents income or gains/(losses) from affiliates.
@ Average shares method used in calcuation.
SEE NOTES TO FINANCIAL STATEMENTS
158
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 August 1, 2004 through January 31,
2005.
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
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
--------- --------- ---------------- ----------------
Small Cap Growth Fund Institutional Shares $1,000.00 $1,111.90 $ 5.38 1.01%
Class A Shares 1,000.00 1,110.10 6.70 1.26%
Class B Shares 1,000.00 1,105.70 10.67 2.01%
Class C Shares 1,000.00 1,106.50 10.67 2.01%
Advisor Shares 1,000.00 1,108.90 8.03 1.51%
Mid Cap Growth Fund Institutional Shares 1,000.00 1,111.10 5.75 1.08%
Class A Shares 1,000.00 1,109.30 7.07 1.33%
Class B Shares 1,000.00 1,105.00 11.04 2.08%
Class C Shares 1,000.00 1,104.70 11.03 2.08%
Advisor Shares 1,000.00 1,107.50 8.39 1.58%
Quality Growth Fund Institutional Shares 1,000.00 1,032.90 5.48 1.07%
Class A Shares 1,000.00 1,031.30 6.76 1.32%
Class B Shares 1,000.00 1,027.20 10.58 2.07%
Class C Shares 1,000.00 1,027.10 10.58 2.07%
Advisor Shares 1,000.00 1,030.10 8.03 1.57%
Large Cap Core Fund Institutional Shares 1,000.00 1,089.10 4.84 0.92%
Class A Shares 1,000.00 1,087.20 6.16 1.17%
Class B Shares 1,000.00 1,083.10 10.08 1.92%
Class C Shares 1,000.00 1,083.80 10.08 1.92%
Equity Index Fund Institutional Shares 1,000.00 1,080.90 1.00 0.19%
Class A Shares 1,000.00 1,079.30 2.31 0.44%
Class B Shares 1,000.00 1,074.90 6.22 1.19%
Class C Shares 1,000.00 1,074.80 6.22 1.19%
Advisor Shares 1,000.00 1,078.10 3.61 0.69%
Select Shares 1,000.00 1,080.50 1.42 0.27%
Preferred Shares 1,000.00 1,079.30 1.78 0.34%
Trust Shares 1,000.00 1,079.00 2.31 0.44%
Balanced Fund Institutional Shares 1,000.00 1,063.90 5.31 1.02%
Class A Shares 1,000.00 1,061.90 6.60 1.27%
Class B Shares 1,000.00 1,057.80 10.48 2.02%
Class C Shares 1,000.00 1,057.90 10.48 2.02%
Advisor Shares 1,000.00 1,060.10 7.89 1.52%
Micro Cap Value Fund Institutional Shares 1,000.00 1,128.20 7.13 1.33%
Class A Shares 1,000.00 1,127.50 8.47 1.58%
Class B Shares 1,000.00 1,126.80 8.47 1.58%
Class C Shares 1,000.00 1,126.80 8.47 1.58%
Advisor Shares 1,000.00 1,127.20 8.47 1.58%
_____________________
* 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.
159
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
--------- --------- ---------------- ----------------
Small Cap Value Fund Institutional Shares $1,000.00 $1,082.60 $ 6.56 1.25%
Class A Shares 1,000.00 1,080.80 7.87 1.50%
Class B Shares 1,000.00 1,076.90 11.78 2.25%
Class C Shares 1,000.00 1,077.10 11.78 2.25%
Advisor Shares 1,000.00 1,080.00 9.17 1.75%
Multi Cap Value Fund Institutional Shares 1,000.00 1,122.80 6.90 1.29%
Class A Shares 1,000.00 1,121.40 8.23 1.54%
Class B Shares 1,000.00 1,117.10 12.22 2.29%
Class C Shares 1,000.00 1,116.70 12.22 2.29%
Advisor Shares 1,000.00 1,119.40 9.56 1.79%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,076.00 5.55 1.06%
Class A Shares 1,000.00 1,074.20 6.85 1.31%
Class B Shares 1,000.00 1,070.40 10.75 2.06%
Class C Shares 1,000.00 1,070.90 10.75 2.06%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 1,079.10 0.42 0.08%
Class A Shares 1,000.00 1,078.10 1.73 0.33%
Class B Shares 1,000.00 1,074.30 5.65 1.08%
Class C Shares 1,000.00 1,074.10 5.65 1.08%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 1,067.50 0.42 0.08%
Class A Shares 1,000.00 1,065.60 1.72 0.33%
Class B Shares 1,000.00 1,061.90 5.61 1.08%
Class C Shares 1,000.00 1,061.90 5.61 1.08%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 1,053.70 0.41 0.08%
Class A Shares 1,000.00 1,051.70 1.71 0.33%
Class B Shares 1,000.00 1,048.00 5.58 1.08%
Class C Shares 1,000.00 1,047.80 5.57 1.08%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 1,047.90 0.41 0.08%
Class A Shares 1,000.00 1,046.50 1.70 0.33%
Class B Shares 1,000.00 1,042.00 5.56 1.08%
Class C Shares 1,000.00 1,042.80 5.56 1.08%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,035.30 0.41 0.08%
Class A Shares 1,000.00 1,034.10 1.69 0.33%
Class B Shares 1,000.00 1,030.20 5.53 1.08%
Class C Shares 1,000.00 1,030.10 5.53 1.08%
Strategic Income Fund Institutional Shares 1,000.00 1,056.90 6.95 1.34%
Class A Shares 1,000.00 1,055.70 8.29 1.60%
Class B Shares 1,000.00 1,051.80 12.15 2.35%
Class C Shares 1,000.00 1,051.20 12.10 2.34%
Advisor Shares 1,000.00 1,054.40 9.53 1.84%
Select Stock Fund Institutional Shares 1,000.00 1,056.00 7.51 1.45%
Class A Shares 1,000.00 1,054.20 8.80 1.70%
Class B Shares 1,000.00 1,050.20 12.66 2.45%
Class C Shares 1,000.00 1,050.50 12.66 2.45%
Technology Fund Institutional Shares 1,000.00 1,087.50 8.26 1.57%
Class A Shares 1,000.00 1,084.70 9.56 1.82%
Class B Shares 1,000.00 1,081.10 13.48 2.57%
Class C Shares 1,000.00 1,080.00 13.47 2.57%
Advisor Shares 1,000.00 1,082.90 10.87 2.07%
International Equity Fund Institutional Shares 1,000.00 1,147.10 7.31 1.35%
Class A Shares 1,000.00 1,146.30 8.66 1.60%
Class B Shares 1,000.00 1,141.30 12.68 2.35%
Class C Shares 1,000.00 1,141.30 12.68 2.35%
Advisor Shares 1,000.00 1,143.80 10.00 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.
160
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
--------- --------- ---------------- ----------------
Bond Fund Institutional Shares $1,000.00 $1,036.90 $4.06 0.79%
Class A Shares 1,000.00 1,034.60 5.33 1.04%
Class B Shares 1,000.00 1,030.70 9.16 1.79%
Class C Shares 1,000.00 1,030.70 9.16 1.79%
Advisor Shares 1,000.00 1,033.40 6.61 1.29%
Intermediate Bond Fund Institutional Shares 1,000.00 1,024.10 3.88 0.76%
Class A Shares 1,000.00 1,023.60 5.15 1.01%
Class B Shares 1,000.00 1,022.70 5.15 1.01%
Class C Shares 1,000.00 1,018.90 8.96 1.76%
Short Term Bond Fund Institutional Shares 1,000.00 1,006.20 3.74 0.74%
Class A Shares 1,000.00 1,004.80 5.00 0.99%
Class C Shares 1,000.00 1,001.10 8.78 1.74%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,018.40 3.97 0.78%
Class A Shares 1,000.00 1,017.10 5.24 1.03%
Class C Shares 1,000.00 1,013.50 9.03 1.78%
Municipal Bond Fund Institutional Shares 1,000.00 1,037.50 4.01 0.78%
Class A Shares 1,000.00 1,037.10 5.29 1.03%
Class B Shares 1,000.00 1,032.40 9.12 1.78%
Class C Shares 1,000.00 1,032.30 9.12 1.78%
Advisor Shares 1,000.00 1,035.10 6.57 1.28%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,024.70 3.47 0.68%
Class A Shares 1,000.00 1,022.30 4.74 0.93%
Class B Shares 1,000.00 1,023.30 4.74 0.93%
Class C Shares 1,000.00 1,019.30 8.55 1.68%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,023.70 3.98 0.78%
Class A Shares 1,000.00 1,022.60 5.25 1.03%
Class B Shares 1,000.00 1,018.20 9.05 1.78%
Class C Shares 1,000.00 1,018.60 9.06 1.78%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,012.70 3.50 0.69%
Class A Shares 1,000.00 1,012.10 4.26 0.84%
Class B Shares 1,000.00 1,007.70 8.55 1.69%
Class C Shares 1,000.00 1,007.60 8.55 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.~
161
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
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
--------- --------- ---------------- ----------------
Small Cap Growth Fund Institutional Shares $1,000.00 $1,020.11 $ 5.14 1.01%
Class A Shares 1,000.00 1,018.85 6.41 1.26%
Class B Shares 1,000.00 1,015.07 10.21 2.01%
Class C Shares 1,000.00 1,015.07 10.21 2.01%
Advisor Shares 1,000.00 1,017.59 7.68 1.51%
Mid Cap Growth Fund Institutional Shares 1,000.00 1,019.76 5.50 1.08%
Class A Shares 1,000.00 1,018.50 6.77 1.33%
Class B Shares 1,000.00 1,014.72 10.56 2.08%
Class C Shares 1,000.00 1,014.72 10.56 2.08%
Advisor Shares 1,000.00 1,017.24 8.03 1.58%
Quality Growth Fund Institutional Shares 1,000.00 1,019.81 5.45 1.07%
Class A Shares 1,000.00 1,018.55 6.72 1.32%
Class B Shares 1,000.00 1,014.77 10.51 2.07%
Class C Shares 1,000.00 1,014.77 10.51 2.07%
Advisor Shares 1,000.00 1,017.29 7.98 1.57%
Large Cap Core Fund Institutional Shares 1,000.00 1,020.57 4.69 0.92%
Class A Shares 1,000.00 1,019.31 5.96 1.17%
Class B Shares 1,000.00 1,015.53 9.75 1.92%
Class C Shares 1,000.00 1,015.53 9.75 1.92%
Equity Index Fund Institutional Shares 1,000.00 1,024.25 0.97 0.19%
Class A Shares 1,000.00 1,022.99 2.24 0.44%
Class B Shares 1,000.00 1,019.21 6.06 1.19%
Class C Shares 1,000.00 1,019.21 6.06 1.19%
Advisor Shares 1,000.00 1,021.73 3.52 0.69%
Select Shares 1,000.00 1,023.84 1.38 0.27%
Preferred Shares 1,000.00 1,023.49 1.73 0.34%
Trust Shares 1,000.00 1,022.99 2.24 0.44%
Balanced Fund Institutional Shares 1,000.00 1,020.06 5.19 1.02%
Class A Shares 1,000.00 1,018.80 6.46 1.27%
Class B Shares 1,000.00 1,015.02 10.26 2.02%
Class C Shares 1,000.00 1,015.02 10.26 2.02%
Advisor Shares 1,000.00 1,017.54 7.73 1.52%
Micro Cap Value Fund Institutional Shares 1,000.00 1,018.50 6.77 1.33%
Class A Shares 1,000.00 1,017.24 8.03 1.58%
Class B Shares 1,000.00 1,017.24 8.03 1.58%
Class C Shares 1,000.00 1,017.24 8.03 1.58%
Advisor Shares 1,000.00 1,017.24 8.03 1.58%
_____________________
* 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.
162
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
--------- --------- ---------------- ----------------
Small Cap Value Fund Institutional Shares $1,000.00 $1,018.90 $ 6.36 1.25%
Class A Shares 1,000.00 1,017.64 7.63 1.50%
Class B Shares 1,000.00 1,013.86 11.42 2.25%
Class C Shares 1,000.00 1,013.86 11.42 2.25%
Advisor Shares 1,000.00 1,016.38 8.89 1.75%
Multi Cap Value Fund Institutional Shares 1,000.00 1,018.70 6.56 1.29%
Class A Shares 1,000.00 1,017.44 7.83 1.54%
Class B Shares 1,000.00 1,013.66 11.62 2.29%
Class C Shares 1,000.00 1,013.66 11.62 2.29%
Advisor Shares 1,000.00 1,016.18 9.10 1.79%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,019.86 5.40 1.06%
Class A Shares 1,000.00 1,018.60 6.67 1.31%
Class B Shares 1,000.00 1,014.82 10.46 2.06%
Class C Shares 1,000.00 1,014.82 10.46 2.06%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
Strategic Income Fund Institutional Shares 1,000.00 1,018.45 6.82 1.34%
Class A Shares 1,000.00 1,017.14 8.13 1.60%
Class B Shares 1,000.00 1,013.36 11.93 2.35%
Class C Shares 1,000.00 1,013.41 11.88 2.34%
Advisor Shares 1,000.00 1,015.93 9.35 1.84%
Select Stock Fund Institutional Shares 1,000.00 1,017.90 7.37 1.45%
Class A Shares 1,000.00 1,016.64 8.64 1.70%
Class B Shares 1,000.00 1,012.85 12.43 2.45%
Class C Shares 1,000.00 1,012.85 12.43 2.45%
Technology Fund Institutional Shares 1,000.00 1,017.29 7.98 1.57%
Class A Shares 1,000.00 1,016.03 9.25 1.82%
Class B Shares 1,000.00 1,012.25 13.03 2.57%
Class C Shares 1,000.00 1,012.25 13.03 2.57%
Advisor Shares 1,000.00 1,014.77 10.51 2.07%
International Equity Fund Institutional Shares 1,000.00 1,018.40 6.87 1.35%
Class A Shares 1,000.00 1,017.14 8.13 1.60%
Class B Shares 1,000.00 1,013.36 11.93 2.35%
Class C Shares 1,000.00 1,013.36 11.93 2.35%
Advisor Shares 1,000.00 1,015.88 9.40 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.
163
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/04 1/31/05 8/1/04 - 1/31/05 8/1/04 - 1/31/05
--------- --------- ---------------- ----------------
Bond Fund Institutional Shares $1,000.00 $1,021.22 $4.02 0.79%
Class A Shares 1,000.00 1,019.96 5.30 1.04%
Class B Shares 1,000.00 1,016.18 9.10 1.79%
Class C Shares 1,000.00 1,016.18 9.10 1.79%
Advisor Shares 1,000.00 1,018.70 6.56 1.29%
Intermediate Bond Fund Institutional Shares 1,000.00 1,021.37 3.87 0.76%
Class A Shares 1,000.00 1,020.11 5.14 1.01%
Class B Shares 1,000.00 1,020.11 5.14 1.01%
Class C Shares 1,000.00 1,016.33 8.94 1.76%
Short Term Bond Fund Institutional Shares 1,000.00 1,021.48 3.77 0.74%
Class A Shares 1,000.00 1,020.21 5.04 0.99%
Class C Shares 1,000.00 1,016.43 8.84 1.74%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,021.27 3.97 0.78%
Class A Shares 1,000.00 1,020.01 5.24 1.03%
Class C Shares 1,000.00 1,016.23 9.05 1.78%
Municipal Bond Fund Institutional Shares 1,000.00 1,021.27 3.97 0.78%
Class A Shares 1,000.00 1,020.01 5.24 1.03%
Class B Shares 1,000.00 1,016.23 9.05 1.78%
Class C Shares 1,000.00 1,016.23 9.05 1.78%
Advisor Shares 1,000.00 1,018.75 6.51 1.28%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,021.78 3.47 0.68%
Class A Shares 1,000.00 1,020.52 4.74 0.93%
Class B Shares 1,000.00 1,020.52 4.74 0.93%
Class C Shares 1,000.00 1,016.74 8.54 1.68%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,021.27 3.97 0.78%
Class A Shares 1,000.00 1,020.01 5.24 1.03%
Class B Shares 1,000.00 1,016.23 9.05 1.78%
Class C Shares 1,000.00 1,016.23 9.05 1.78%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,021.73 3.52 0.69%
Class A Shares 1,000.00 1,020.97 4.28 0.84%
Class B Shares 1,000.00 1,016.69 8.59 1.69%
Class C Shares 1,000.00 1,016.69 8.59 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.
164
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 Morgan Stanley Investment
Fund only) 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, Accountant and Fifth Third Bank
Custodian 38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------
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
3/05 SAR-STBD-05
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.
Included as part of the report to shareholders filed under Item 1 of
this form.
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 12(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.
NOT APPLICABLE
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
NOT APPLICABLE
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.
INCLUDED AS PART OF THE REPORT TO SHAREHOLDERS FILED UNDER ITEM 1 OF THE FORM.
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
If the registrant is a closed-end management investment company that is filing
an annual report on this Form N-CSR, provide the information specified in
paragraphs (a) and (b) of this Item with respect to portfolio managers.
NOT APPLICABLE.
ITEM 9. 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 10. 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.
THE TRUST, EFFECTIVE SEPTEMBER 29, 2004, ADOPTED PROCEDURES BY WHICH
SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES.
ITEM 11. 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 second fiscal quarter of the period covered by this 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 SECOND FISCAL QUARTER OF THE PERIOD COVERED
BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO
MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 12. 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.
NOT APPLICABLE.
(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/ Steven D. Pierce Steven D. Pierce, Treasurer
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Date April 11, 2005
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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 April 11, 2005
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By (Signature and Title) /s/ Steven D. Pierce Steven D. Pierce, Treasurer
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Date April 11, 2005
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