UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-5669 -------------------------------------------- Fifth Third Funds - ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 3435 Stelzer Road, Columbus, OH 43219 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 614-470-8000 ------------- Date of fiscal year end: July 31 ------- Date of reporting period: July 31, 2005 ------------- 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 ANNUAL REPORT TO SHAREHOLDERS ----------------- JULY 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 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 and Commentary Section ..................................... 1 Manager Commentary .......................................................... 3 Schedules of Portfolio Investments .......................................... 5 Notes to Schedules of Portfolio Investments ................................. 20 Statements of Assets and Liabilities ........................................ 22 Statements of Operations .................................................... 24 Statements of Changes in Net Assets ......................................... 26 Notes to Financial Statements ............................................... 30 Financial Highlights ........................................................ 36 Report of Independent Registered Public Accounting Firm ..................... 42 Supplemental Information .................................................... 43 OUR MESSAGE TO YOU - -------------------------------------------------------------------------------- [LOGO] Stock investors realized above average returns during the 12-month period ended July 31, 2005, while bond investors endured below average returns. Major stock index returns were as follows: 1. The S&P 500(R) Index 1 of large cap stocks returned 14.04%. 2. The S&P 400(R) Index 1 of mid cap stocks returned 25.89%. 3. The Russell 2000(R) Index 1 of small cap stocks returned 24.79%. 4. The MSCI EAFE(R) Index 1 of international stocks returned 21.56%. Major bond index returns were as follows: 1. The Lehman Brothers Aggregate Bond Index 1 returned 4.79%. 2. The Lehman Brothers Intermediate Government/Credit Index 1 returned 3.06%. 3. The Lehman Brothers 1-3 Year Government Bond Index 1 returned 1.36%. 4. The Lehman Brothers Municipal Bond Index 1 returned 6.35%. Continued double-digit growth in corporate profits drove strong equity returns, along with the continuation of relatively low bond yields. Weaker performance in the fixed income market resulted from an active Federal Reserve Board (the "Fed"), which raised the overnight fed funds rate from 1.25% to 3.25% during the fiscal year. In addition, the rate of inflation drifted upwards amid above average economic growth and a rise in energy prices. Several patterns that investors have experienced for the past few years repeated themselves during the period, including the outperformance of mid cap and small cap stocks, relative to large cap names, and international large cap equities outpacing domestic large cap stocks. During the fiscal year the managers of the Fifth Third Funds focused on quality, growth potential and valuation characteristics within their individual portfolios. The fiscal year was highlighted by four events that, arguably, had the largest effect on the financial markets: 1. The outcome, and finality, of the November 2004 elections. 2. An active Federal Reserve. 3. The flattening of the yield curve. 4. A dramatic rise in the price of energy. The outcome of the November elections, which were quickly resolved, helped stocks move sharply higher from the final week of October through the end of 2004 (propelling the S&P 500(R) Index 10% during that time). In 2005, stocks rallied into March, but fell in early April as economic and corporate profit growth concerns followed sharp increases in energy prices. In late April, stocks began another comeback on stronger than expected corporate earnings and a downward move in long-term bond yields, and the period finished with an unusually strong July. Within the bond market, the Fed's commitment to raising rates at the short end of the yield curve combined with sustained buying pressure on the long end to create a "conundrum," as described by Federal Reserve Board Chairman Alan Greenspan. The yield on the two-year Treasury bond started the fiscal year at 2.68%, but ended the period on July 31, 2005 at 4.01%. In contrast, the yield on the 10-year Treasury bond started the fiscal year at 4.47% and ended the period on July 31, 2005 at 4.28%. For the first time in history, the long end of the yield curve did not respond to a Fed tightening cycle by moving higher as well. This flattening of the curve frustrated the Fed, which believed higher long-term yields would cool the housing market and the overall economy, but the bond market did not cooperate. Energy prices proved unsettling for investors and frustrating for consumers. To us, what differentiates this rise in the price of oil from past increases is that this one is demand driven, whereas past spikes resulted from shocks to the supply side of the equation. Such conditions increase the potential staying power of higher energy prices, as 1 long as demand continues to expand. Complicating matters shortly after the period's end was the damage caused by Hurricane Katrina, which raised supply concerns and led to a price spike that added elevated risk to the country's economic expansion. As of this writing, however, we are encouraged by the progress being made in restoring energy assets along the Gulf Coast. We also continue to be encouraged by the underlying strength of the U.S. economy, even with the drag of higher energy prices and the direct and indirect challenges stemming from Hurricane Katrina. Similarly, we are heartened by the resilience of the American spirit to overcome adversity. As we move into the new fiscal year, we are focusing on the Fed, inflation, energy and the U.S. consumer. While economic and corporate growth may slow early on, we remain optimistic that the Fed will not risk a recession in the U.S. Thank you for your continued confidence in the Fifth Third Funds. /s/ Keith Wirtz Keith Wirtz, CFA Chief Investment Officer /s/ John Augustine John Augustine, CFA Chief Investment Strategist The foregoing information and opinions are for general information only. Fifth Third Asset Management, Inc. does not guarantee the accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering of individual or personalized investment advice. 1 TERMS AND DEFINITIONS - -------------------------------------------------------------------------------- THE STANDARD & POOR'S 500 STOCK(R) INDEX ("S&P 500(R)") IS AN INDEX OF 500 SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED ON THE NEWYORK STOCK EXCHANGE, AND IS A MEASURE OF THE U.S. STOCK MARKET AS A WHOLE. THE STANDARD & POOR'S MIDCAP 400(R) INDEX ("S&P 400(R)") IS AN INDEX COMPRISED OF 400 DOMESTIC STOCKS CHOSEN FOR MARKET SIZE (MEDIAN MARKET CAPITALIZATION OF $676 MILLION), LIQUIDITY AND INDUSTRY GROUP REPRESENTATION. THE RUSSELL 2000(R) INDEX WHICH MEASURES THE PERFORMANCE OF THE 2,000 SMALLEST COMPANIES IN THE RUSSELL 3000(R) INDEX, WHICH REPRESENTS APPROXIMATELY 8% OF THE TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000(R) INDEX.THE COMPANIES WHICH COMPRISE THIS INDEX HAVE HIGH PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES. THE MORGAN STANLEY CAPITAL INTERNATIONAL(R) EUROPE AUSTRALASIA AND FAR EAST INDEX ("MSCI(R) EAFE") IS A MARKET CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF THE 48 COUNTRIES IN THE MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD OUTSIDE OF NORTH AMERICA. EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN AGGREGATED, WITHOUT CHANGE, INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS CALCULATED IN U.S. DOLLARS AND IN LOCAL CURRENCY. THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED PERFORMANCE BENCHMARK FOR INVESTMENT-GRADE FIXED-RATE DEBT ISSUES, INCLUDING GOVERNMENT, CORPORATE, ASSET-BACKED, AND MORTGAGE-BACKED SECURITIES, WITH MATURITIES OF AT LEAST ONE YEAR. THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX IS COMPOSED OF INVESTMENT GRADE CORPORATE DEBT ISSUES AS WELL AS DEBT ISSUES OF U.S. GOVERNMENT AGENCIES AND THE U.S.TREASURY. THE DEBT ISSUES ALL MAINTAIN MATURITIES WITHIN A RANGE OF ONE TO TEN YEARS. THE LEHMAN BROTHERS 1-3 YEAR GOVERNMENT BOND INDEX IS THE 1-3 YEAR COMPONENT OF THE U.S. GOVERNMENT INDEX. IT CONSISTS OF SECURITIES IN THE U.S. GOVERNMENT INDEX WITH A MATURITY FROM ONE UP TO BUT NOT INCLUDING THREE YEARS. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS A BROAD MARKET PERFORMANCE BENCHMARK FOR THE TAX-EXEMPT BOND MARKET, THE BONDS INCLUDED IN THIS INDEX MUST HAVE A MINIMUM CREDIT RATING OF AT LEAST BAA. THEY MUST HAVE AN OUTSTANDING PAR VALUE OF AT LEAST $3 MILLION AND BE ISSUED AS PART OF A TRANSACTION OF AT LEAST $50 MILLION. THE INDEX INCLUDES BOTH ZERO COUPON BONDS AND BONDS SUBJECT TO THE ALTERNATIVE MINIMUM TAX. THE ABOVE INDICES DO NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING SECURITIES. 2 MANAGEMENT DISCUSSION OF FUND PERFORMANCE MONEY MARKET FUNDS For the 12-month period ended July 31, 2005, yields across the Fifth Third Money Market Funds increased gradually, but persistently, on an absolute basis. The rise reflected the ability to reinvest in higher yielding securities as the Federal Open Market Committee ("FOMC") increased the federal funds target rate from 1.25% to 3.25% over the course of its eight scheduled meetings during the period. Against this backdrop, the Funds maintained a neutral or slightly longer duration strategy, relative to peers, which allowed them to fully participate in the rising rate environment. Within this strategy, the taxable Money Market Funds continued to utilize 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 out floating and fixed extension investments, which traditionally yield more than cash equivalent securities while hedging against future interest rate increases. This approach was based on the belief that the FOMC would remain "measured" while removing the accommodation in the federal funds target rate and that upward adjustments would continue throughout most of 2005. The strategy proved effective as the Funds benefited from the frequent reinvestment of cash equivalents and the floating rate securities provided a solid yield enhancement. Furthermore, the additional liquidity allowed the Funds to readily cope with volatile cash flows.+ The Fifth Third Prime Money Market Fund and the Fifth Third Institutional Money Market maintained a conservative orientation during the period. The continued emphasis on high quality security selection helped the Funds meet the principal preservation objective.+ Municipal money markets experienced a shift in emphasis during the period as the FOMC kept pushing its key rate higher. The early demand for better yielding short notes such as variable rate demand notes gave way to growing interest in longer one-year notes, where yields steadily improved. Although a limited supply of Michigan paper made it difficult at times, the Michigan Municipal Money Market Fund successfully met its duration goal throughout the period and the strategy generally helped it's performance. To capitalize on the broader trend, the Municipal Money Market Fund maintained a neutral to slightly longer duration, relative to its peers, which allowed it to capitalize on short-term rates' move higher.+ Both tax-exempt Funds also continued to hold high quality securities throughout the period. Approximately 70% of the Fund's holdings were composed of weekly and daily floater programs, which are supported by letters of credit and other forms of credit enhancements issued by domestic and foreign banks as well as other financial institutions and corporations. The balance of the Funds' holdings consisted of commercial paper, notes, and money market eligible bonds. While there was little change in the investment mix during the period, smaller issues added value, typically providing a higher yield than larger issues due to lighter demand.+ MATURITY COMPOSITION AS OF JULY 31, 2005 - -------------------------------------------------------------------------------- WEIGHTED AVERAGE MATURITY+ - -------------------------------------------------------------------------------- DAYS DAYS AS OF 1/31/05 AS OF 7/31/05 Fifth Third Prime Money Market Fund 37 35 Fifth Third Institutional Money Market Fund 37 35 Fifth Third Institutional Government Money Market Fund 34 35 Fifth Third Government Money Market Fund 37 34 Fifth Third U.S.Treasury Money Market Fund 21 22 Fifth Third Michigan Municipal Money Market Fund 34 31 Fifth Third Municipal Money Market Fund 42 19 + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- 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. 1 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 Money Money Money Money Money Money Money Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund - ----------------------------------------------------------------------------------------------------------------- Less than 8 days 45.7% 46.7% 42.1% 39.3% 80.3% 74.5% 82.6% - ----------------------------------------------------------------------------------------------------------------- 8 to 14 Days 9.5% 9.2% 7.2% 14.8% -- -- -- - ----------------------------------------------------------------------------------------------------------------- 15 to 30 Days 20.9% 14.6% 23.3% 25.0% -- 6.7% 2.7% - ----------------------------------------------------------------------------------------------------------------- 31 to 180 Days 19.9% 24.7% 22.0% 15.1% 17.3% 12.8% 14.5% - ----------------------------------------------------------------------------------------------------------------- 181 to 365 Days 3.6% 4.8% 5.4% 5.8% 2.4% 6.0% 0.2% - ----------------------------------------------------------------------------------------------------------------- 366 to 397 Days 0.4% -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 4 PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CERTIFICATES OF DEPOSIT (5.0%) Bank of Montreal, 3.25%, 1/6/06 * $ 15,000 $ 14,997 Barclays Bank PLC, 3.42%, 10/31/05 * 15,000 14,998 Credit Suisse First Boston, 3.46%, 3/21/06 * 6,500 6,501 Royal Bank of Scotland PLC, 3.26%, 7/5/06 * 15,000 14,994 SunTrust Banks, Inc., 3.33%, 10/7/05 10,000 10,001 SunTrust Banks, Inc., 3.33%, 10/12/05 10,000 10,000 ------------ TOTAL CERTIFICATES OF DEPOSIT 71,491 ------------ COMMERCIAL PAPER (19.6%) ABN AMRO North American Financial, 10,000 9,990 3.30%, 8/12/05 ** Bank of Montreal, 3.20%, 8/8/05 ** 10,000 9,994 Barclays Capital, 3.31%, 8/12/05 ** 20,000 19,979 Barclays Capital, 3.35%, 8/15/05 ** 11,500 11,485 BNP Paribas, 3.24%, 8/22/05 ** 5,000 4,991 BNP Paribas, 3.50%, 9/26/05 ** 15,000 14,919 BNP Paribas, 3.49%, 10/5/05 ** 10,000 9,938 BNP Paribas, 3.40%, 11/2/05 ** 5,975 5,923 DEPFA Bank PLC, 3.22%, 8/19/05 ** (c) 15,000 14,975 DEPFA Bank PLC, 3.56%, 10/17/05 ** (c) 10,000 9,924 Deutsche Bank, 3.51%, 10/11/05 ** 10,000 9,931 Dexia Delaware LLC, 3.26%, 8/2/05 ** 8,100 8,099 Dexia Delaware LLC, 3.27%, 8/4/05 ** 15,000 14,996 National City Credit Corp., 3.34%, 8/9/05 ** 25,000 24,981 Northern Trust Corp., 3.35%, 8/26/05 ** 20,000 19,954 Northern Trust Corp., 3.42%, 9/6/05 ** 6,435 6,413 Royal Bank of Scotland PLC, 3.30%, 8/15/05 ** 14,900 14,881 San Jose International Airport, 3.46%, 9/1/05 ** 7,782 7,759 Societe Generale, 3.39%, 8/26/05 ** 15,000 14,965 Societe Generale, 3.49%, 10/2/05 ** 15,000 14,911 UBS Investment Bank, 3.25%, 8/8/05 ** 15,000 14,991 UBS Investment Bank, 3.40%, 8/30/05 ** 16,200 16,156 ------------ TOTAL COMMERCIAL PAPER 280,155 ------------ CORPORATE BONDS (29.8%) American Express Credit Corp., 3.36%, 8/9/05 * 15,000 15,000 American Express Credit Corp., 3.45%, 10/14/05 * 7,500 7,501 American Express Credit Corp., 6.88%, 11/1/05 5,000 5,051 American International Group, 2.85%, 12/1/05 9,070 9,047 Bank of America Corp., 6.95%, 3/20/06 5,000 5,098 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS, CONTINUED Bank One Corp., 6.50%, 2/1/06 $ 5,000 $ 5,081 Barclays Bank PLC, 3.32%, 6/13/06 * 10,000 9,998 Bear Stearns & Co., Inc., 3.50%, 12/22/05 * 10,000 10,003 Bear Stearns & Co., Inc., 3.00%, 3/30/06 11,000 10,934 Bear Stearns & Co., Inc., 3.36%, 5/5/06 * 20,000 20,000 Citigroup, Inc., 6.75%, 12/1/05 9,175 9,278 Citigroup, Inc., 5.75%, 5/10/06 14,250 14,448 Credit Suisse First Boston, 3.25%, 8/10/05 * 20,000 20,000 Credit Suisse First Boston, 5.88%, 8/1/06 5,000 5,085 First Union Corp., 7.55%, 8/18/05 20,000 20,044 General Electric Capital Corp., 6.80%, 11/1/05 10,350 10,433 General Electric Capital Corp., 3.41%, 2/3/06 * 20,000 20,025 General Electric Capital Franchise Financial, 7.88%, 11/30/05 7,500 7,623 Goldman Sachs Group, Inc., 7.63%, 8/17/05 17,775 17,815 Goldman Sachs Group, Inc., 3.48%, 2/21/06 * 10,000 10,013 Goldman Sachs Group, Inc., 3.80%, 4/20/06 * 14,000 14,021 Household Finance Corp., 6.50%, 1/24/06 15,700 15,915 Household Finance Corp., 3.38%, 2/21/06 6,035 6,021 Lehman Brothers Holdings, 3.98%, 9/28/05 * 21,780 21,799 Lehman Brothers Holdings, 6.25%, 5/15/06 3,450 3,515 Merrill Lynch & Co., 3.55%, 7/11/06 * 15,000 15,000 Morgan Stanley, 3.37%, 8/4/06 * 15,000 15,000 National City Bank, 3.46%, 7/26/06 * 9,250 9,254 Societe Generale, 3.28%, 8/10/05 * 18,000 18,000 SunTrust Banks, Inc., 3.53%, 10/3/05 * 16,700 16,701 SunTrust Banks, Inc., 2.50%, 5/4/06 4,675 4,621 US Bancorp, 3.56%, 9/16/05 * 10,000 10,002 Wells Fargo & Co., 7.25%, 8/24/05 9,500 9,529 Wells Fargo & Co., 3.45%, 3/3/06 * 7,100 7,106 Wells Fargo & Co., 3.38%, 8/15/06 * 25,000 25,001 ------------ TOTAL CORPORATE BONDS 423,962 ------------ DEMAND NOTES (15.3%) American Healthcare Funding, 3.38%, 5/1/27, (LOC: LaSalle Bank) * 5,355 5,355 Atlas Industries, Inc., 3.47%, 6/1/10, (LOC: National City Bank) * 4,735 4,735 CONTINUED 5 PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ DEMAND NOTES, CONTINUED Beavercreek Enterprises, 3.47%, 3/2/20, (LOC: National City Bank) * $ 4,290 $ 4,290 Buckeye Corrugated, Inc., 3.52%, 10/1/17, (LOC: Key Bank) * (c) 6,185 6,185 Capital One Funding Corp., 3.36%, 10/1/14, (LOC: Bank One) * 2,473 2,473 Capital One Funding Corp., 3.36%, 7/2/18, (LOC: Bank One) * (c) 913 913 Capital One Funding Corp., 3.36%, 10/1/21, (LOC: Bank One) * (c) 1,200 1,200 Capital One Funding Corp., 3.36%, 1/4/27, (LOC: Bank One) * 7,661 7,661 Central Michigan Inns, 3.45%, 4/1/30, (LOC: Michigan National Bank) * 2,010 2,010 Cornerstone Funding Corp., 3.53%, 12/1/11, (LOC: SunTrust) * 8,360 8,360 Cornerstone Funding Corp., 3.53%, 9/1/25, (LOC: SunTrust) * 5,750 5,750 GTB Properties LLC, 3.68%, 7/1/23, (LOC: National Australia Bank) * 4,265 4,265 Harry W. Albright, Jr., 3.59%, 5/1/21, (LOC: National Australia Bank) * 5,485 5,485 Heart Center Medical Group, 3.47%, 10/1/30, (LOC: National City Bank) * 10,425 10,425 HWP Co., Ltd. Project, 3.47%, 12/3/18, (LOC: National City Bank) * (c) 4,555 4,555 Iowa 80 Group Inc., 3.40%, 6/1/16, (LOC: Wells Fargo) * 4,400 4,400 Jackson 2000, 3.52%, 6/1/49, (LOC: KeyBank) * 9,245 9,245 Jefferson Land Development, 3.52%, 10/1/16, (LOC: National City Bank) * (c) 1,050 1,050 Landmark Medical LLC, 3.40%, 1/1/21, (LOC: Bank One) * 8,280 8,280 Lexington Financial Services, 3.55%, 2/1/26, (LOC: LaSalle Bank) * 9,100 9,100 Mount Carmel East Professional, 3.47%, 1/1/14, (LOC: National City) * (c) 1,740 1,740 Mr. K Enterprises, 3.68%, 9/1/16, (LOC: National Australia Bank) * 6,525 6,525 New Belgium Brewery Co., 3.52%, 7/1/15, (LOC: KeyBank) * 3,740 3,740 Northside Christian Church, 3.40%, 4/1/30, (LOC: Bank One) * 6,930 6,930 Park State Properties LLC, 3.44%, 11/1/34, (LOC: US Bank) * 5,500 5,500 PCI Paper Conversions, Inc., 3.52%, 4/1/10, (LOC: KeyBank) * 2,285 2,285 Pittsburgh Technical Institute, 3.47%, 10/1/15, (LOC: National City Bank) * 10,870 10,870 PRD Finance LLC, 3.42%, 4/1/27, (LOC: National City Bank) * 7,750 7,750 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ DEMAND NOTES, CONTINUED Precision Tool and Die, 3.47%, 3/1/10, (LOC: National City Bank) * $ 3,983 $ 3,983 Revenue Bond CTF Series Trust, 3.99%, 6/1/24, (LOC: AIG) * (c) 3,875 3,875 Revenue Bond CTF Series Trust Castlegate 3, 3.99%, 6/1/17, (LOC: AIG) * (c) 2,540 2,540 Royal Town Center LLC Project, 3.52%, 10/1/47, (LOC: Comerica Bank) * (c) 5,095 5,095 Saint Andrew United, 3.45%, 7/1/29, (LOC: Wachovia Bank) * 15,335 15,335 Second & Main, Ltd., 3.47%, 8/1/11, (LOC: National City Bank) * 3,450 3,450 Secor Realty, Inc., 3.47%, 4/1/20, (LOC: National City Bank) * 9,035 9,035 SGS Tool Co., 3.47%, 12/1/12, (LOC: Bank One) * 5,900 5,900 Sharonville Realty Enterprises, 3.40%, 4/1/20, (LOC: Bank One) * (c) 8,560 8,560 Southeastern College, 3.43%, 1/2/30, (LOC: Regions Financial Corp.) * 6,900 6,900 Zeigler Realty LLC, 3.59%, 9/1/26, (LOC: National City Bank) * 2,490 2,490 ------------ TOTAL DEMAND NOTES 218,240 ------------ MUNICIPAL BONDS (16.9%) ALASKA (0.3%) Four Dam Pool Electric Revenue, 3.37%, 7/1/26 * 3,770 3,770 ------------ ARIZONA (0.8%) Tempe Industrial Development Authority Revenue, 3.38%, 7/1/34 * 11,690 11,690 ------------ CALIFORNIA (2.8%) Riverside County, 3.32%, 11/1/20 * 7,200 7,200 Sacramento County, 3.31%, 7/1/22 * 32,430 32,430 ------------ 39,630 ------------ COLORADO (0.1%) Pueblo Housing Authority Purchasing Revenue, 3.52%, 12/1/18 * (c) 1,900 1,900 ------------ GEORGIA (1.0%) Athens Clarke County Government Development Authority Revenue, University of Georgia Athletic Department, 3.25%, 7/1/21 * 3,640 3,640 Columbus Development Authority, Industrial Revenue, Litho-Krome Project, 3.52%, 8/1/22 * 10,125 10,125 ------------ 13,765 ------------ CONTINUED 6 PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED ILLINOIS (1.0%) Chicago, Series B, 3.50%, 1/1/19 * $ 13,630 $ 13,630 ------------ INDIANA (0.5%) Ball State University, 3.29%, 9/1/31 * 7,000 7,000 ------------ IOWA (0.5%) Dallas County Industrial Development Revenue, Sioux City Brick & Tile, 3.40%, 9/1/21 * 6,980 6,980 ------------ KANSAS (0.4%) Park City Industrial Revenue, Hayes Co., Inc., 3.29%, 9/15/16 * 5,695 5,695 ------------ KENTUCKY (1.1%) Bardstown Industrial Revenue, 3.59%, 6/1/24 * 7,950 7,950 Webster County Industrial Revenue, Green River Project, 3.40%, 11/1/24 * 8,000 8,000 ------------ 15,950 ------------ MICHIGAN (1.7%) Commerce Charter Township, Downtown Development, 3.53%, 10/1/34 * 20,000 20,000 Hospital Association Financial Corp., 3.59%, 11/1/30 * 4,455 4,455 ------------ 24,455 ------------ MINNESOTA (1.1%) Minneapolis Taxable Pension, 3.37%, 12/1/13 * 15,295 15,295 ------------ MISSISSIPPI (0.2%) Business Finance Corp., Industrial Development Revenue, Koch Freezers LLC, 3.40%, 3/1/17 * 2,900 2,900 ------------ NEW YORK (1.2%) Anti-Defamation League Foundation, 3.47%, 1/1/34 * (c) 9,900 9,900 Housing Development Corp., Multi Family Rental Housing Revenue, 3.35%, 6/1/33 * 7,800 7,800 ------------ 17,700 ------------ NORTH CAROLINA (1.6%) Capital Facilities Financial Agency Revenue, Wolfpack Powers, 3.38%, 9/1/18 * 5,500 5,500 Roman Catholic Diocese, Series A, 3.54%, 6/1/18 * 17,050 17,050 ------------ 22,550 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED NORTH DAKOTA (0.5%) Ward County Health Care Facilities Revenue, 3.29%, 7/1/31 * $ 7,400 $ 7,400 ------------ OHIO (0.3%) Cleveland-Cuyahoga County, Port Authority Revenue, CBT Project, 3.52%, 6/1/31 * 4,500 4,500 ------------ PENNSYLVANIA (0.2%) Allegheny County, Industrial Development Authority Revenue, 3.47%, 5/1/15 * 2,700 2,700 ------------ TENNESSEE (0.6%) Jackson Energy Authority, 3.38%, 10/1/25 * 8,450 8,450 ------------ UTAH (0.1%) Housing Corp., Multi Family Revenue, 3.99%, 1/1/22 * 2,061 2,061 ------------ VIRGINIA (0.4%) Norfolk Redevelopment and Housing Authority Revenue, 3.38%, 8/1/13 * 5,785 5,785 ------------ WASHINGTON (0.5%) Housing Finance Community, Multifamily Revenue, Monticello Park Project, 3.41%, 8/1/26 * 3,955 3,955 State Housing Finance Community, Multi Family Revenue, Eaglepointe Apartments-B, 3.99%, 7/1/28 * 1,610 1,610 State Housing Finance Community, Multi Family Revenue, Winterhill Apartments- B, 3.99%, 7/1/28 * 2,175 2,175 ------------ 7,740 ------------ TOTAL MUNICIPAL BONDS 241,546 ------------ REPURCHASE AGREEMENTS (11.0%) State Street, 3.21%, 8/1/05 (Proceeds at maturity, $6,263, Collateralized by U.S. Treasury Note, 1.63%, 10/31/05, value $6,390) 6,261 6,261 UBS Investment Bank, 3.29%, 8/1/05 (Proceeds at maturity, $150,041, Collateralized by various U.S. Government Agency securities, 0.00%-7.10%, 9/1/05 - 8/15/19, value $153,000) 150,000 150,000 ------------ TOTAL REPURCHASE AGREEMENTS 156,261 ------------ CONTINUED 7 PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ MONEY MARKETS (0.4%) AIM Funds Liquid Assets Portfolio - Institutional Class 2,351,858 $ 2,352 Goldman Sachs Financial Square Prime Obligations Fund 2,879,797 2,880 ------------ TOTAL MONEY MARKETS 5,232 ------------ TOTAL INVESTMENTS (COST $1,396,887) (a) - 98.0% 1,396,887 OTHER ASSETS IN EXCESS OF LIABILITIES - 2.0% 29,095 ------------ NET ASSETS - 100.0% $ 1,425,982 ============ SEE NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CERTIFICATES OF DEPOSIT (11.8%) Bank of Montreal, 3.25%, 1/6/06 * $ 12,000 $ 11,998 Barclays Bank PLC, 3.42%, 10/31/05 * 10,000 9,999 BNP Paribas, 3.18%, 8/9/05 15,000 15,000 Credit Suisse First Boston, 3.28%, 9/2/05 24,000 24,000 Deutsche Bank, 2.40%, 10/7/05 5,000 4,994 Harris Trust & Savings, 3.29%, 9/14/05 * 25,000 25,000 SunTrust Banks, Inc., 3.33%, 10/7/05 15,000 15,001 SunTrust Banks, Inc., 3.33%, 10/12/05 15,000 15,000 Toronto Dominion Bank, 3.15%, 8/5/05 15,000 15,000 ------------ TOTAL CERTIFICATES OF DEPOSIT 135,992 ------------ COMMERCIAL PAPER (22.4%) ABN AMRO North American Financial, 3.30%, 8/12/05 ** 10,000 9,990 ABN AMRO North American Financial, 3.43%, 8/23/05 ** 7,750 7,734 American Express Co., 3.18%, 8/11/05 ** 10,000 9,991 Bank of Montreal, 3.20%, 8/8/05 ** 15,000 14,991 Barclays Capital, 3.31%, 8/12/05 ** 15,000 14,985 Benedictine Health Systems, 3.60%, 10/12/05 ** 7,055 7,005 BNP Paribas, 3.49%, 10/5/05 ** 10,000 9,938 BP Amoco PLC, 3.19%, 8/15/05 ** 5,000 4,994 DEPFA Bank PLC, 3.22%, 8/19/05 ** (c) 12,000 11,981 DEPFA Bank PLC, 3.56%, 10/17/05 ** (c) 10,000 9,924 Deutsche Bank, 3.51%, 10/11/05 ** 15,000 14,897 Dexia Delaware LLC, 3.27%, 8/4/05 ** 20,000 19,994 General Electric Capital Corp., 3.27%, 8/30/05 ** 15,000 14,961 General Electric Capital Corp., 3.40%, 9/6/05 ** 15,000 14,949 Michigan State, 2.59%, 10/19/05 2,000 2,000 Northern Trust Corp., 3.35%, 8/26/05 ** 5,000 4,988 Northern Trust Corp., 3.40%, 9/8/05 ** 20,000 19,928 Purdue University, 3.25%, 8/1/05 10,250 10,250 Societe Generale, 3.24%, 8/8/05 ** 15,000 14,991 Toyota Motor Corp., 3.40%, 9/9/05 ** 15,000 14,945 UBS Investment Bank, 3.40%, 8/30/05 ** 10,000 9,973 University of Michigan, 3.42%, 9/1/05 3,960 3,960 University of Texas, 3.39%, 9/7/05 10,342 10,342 ------------ TOTAL COMMERCIAL PAPER 257,711 ------------ CORPORATE BONDS (23.9%) American Express Credit Corp., 3.36%, 8/9/05 * 10,000 10,000 American International Group, 2.85%, 12/1/05 5,205 5,192 Bank One Corp., 7.63%, 8/1/05 9,910 9,910 Bank One Corp., 6.50%, 2/1/06 18,250 18,514 CONTINUED 8 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS, CONTINUED Barclays Bank PLC, 3.32%, 6/13/06 * $ 15,000 $ 14,997 Bear Stearns & Co., Inc., 3.50%, 12/22/05 * 5,000 5,002 Bear Stearns & Co., Inc., 3.00%, 3/30/06 10,000 9,938 Bear Stearns & Co., Inc., 3.36%, 5/5/06 * 15,000 15,000 Citigroup, Inc., 6.75%, 12/1/05 29,300 29,628 Citigroup, Inc., 5.75%, 5/10/06 7,500 7,606 Credit Suisse First Boston, 3.25%, 8/10/05 * 13,200 13,200 First Union Corp., 7.55%, 8/18/05 19,700 19,743 General Electric Capital Corp., 3.41%, 2/3/06 * 15,000 15,019 General Electric Capital Franchise Financial, 7.88%, 11/30/05 2,750 2,795 Goldman Sachs Group, Inc., 7.63%, 8/17/05 10,133 10,155 Goldman Sachs Group, Inc., 3.48%, 2/21/06 * 5,000 5,007 Goldman Sachs Group, Inc., 3.80%, 4/20/06 * 16,635 16,660 Household Finance Corp., 6.50%, 1/24/06 2,765 2,802 Household Finance Corp., 3.38%, 2/21/06 5,000 4,988 Merrill Lynch & Co., 3.59%, 1/13/06 * 6,000 6,013 National City Bank, 3.43%, 12/29/05 * 12,000 11,999 National City Bank, 2.50%, 4/17/06 10,000 9,916 Societe Generale, 3.28%, 8/10/05 * 3,000 3,000 US Bancorp, 2.75%, 3/30/06 3,870 3,846 US Bank NA, 3.35%, 12/5/05 * 3,300 3,300 Wells Fargo & Co., 7.25%, 8/24/05 9,640 9,663 Wells Fargo & Co., 6.20%, 12/1/05 1,600 1,616 Wells Fargo & Co., 3.38%, 8/15/06 * 10,000 10,000 ------------ TOTAL CORPORATE BONDS 275,509 ------------ DEMAND NOTES (5.2%) Capital One Funding, 3.36%, 8/2/21, (LOC: Bank One) * 4,600 4,600 Capital One Funding, 3.36%, 4/1/26, (LOC: Bank One) * 11,143 11,143 Cornerstone Funding Corp., 3.53%, 11/15/06, (LOC: SunTrust) * 4,519 4,519 Cornerstone Funding Corp., 3.53%, 4/1/21 * 6,700 6,700 Cornerstone Funding Corp., 3.53%, 1/1/34, (LOC: SunTrust) * 4,196 4,196 Flatrock River Lodge LP, 3.54%, 7/1/16, (LOC: FHLB) * 1,520 1,520 Gulf Gate Apartments, 3.42%, 9/1/28, (LOC: Wells Fargo) * (c) 2,000 2,000 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ DEMAND NOTES, CONTINUED Lodge of the Wabash, 3.54%, 7/1/16, (LOC: FHLB) * $ 1,730 $ 1,730 Metaltec Steel Abrasive, 3.56%, 11/1/34, (LOC: Comerica Bank) * 4,760 4,760 Northport Baptist Church, 3.54%, 9/1/24, (LOC: Regions Financial Corp.) * 3,100 3,100 Park State Properties LLC, 3.44%, 11/1/34, (LOC: US Bank) * 5,500 5,500 Praise Tabernacle Outreach, 3.54%, 6/1/24, (LOC: Comerica Bank) * 3,790 3,790 Vancouver Clinic Building, 3.43%, 2/1/24, (LOC: US Bank) * 4,550 4,550 White River Lodge LP, 3.54%, 7/1/16, (LOC: FHLB) * 1,625 1,625 ------------ TOTAL DEMAND NOTES 59,733 ------------ MUNICIPAL BONDS (22.7%) ARIZONA (0.3%) Tucson Airport Authority, Inc., 3.38%, 12/1/18 * 3,635 3,635 ------------ ARKANSAS (1.5%) Northwest Regional Airport Authority, Airport Revenue, Series A, 3.49%, 2/1/21 * 15,725 15,725 Northwest Regional Airport Authority, Airport Revenue, Series B, 3.49%, 2/1/08 * 1,850 1,850 ------------ 17,575 ------------ CALIFORNIA (3.3%) Kern Water Authority Revenue, Series B, 3.42%, 7/1/28 * 4,800 4,800 Sacramento County, 3.31%, 7/1/22 * 5,000 5,000 Sacramento County Housing Authority, Multifamily Revenue, Natomas Park Apartments, Series B, 3.42%, 7/15/35 * 2,250 2,250 Saint Michael's Episcopal Day School, 3.48%, 7/1/28 * 2,390 2,390 San Jose Financing Authority Lease Revenue, Hayes Mansion, Phase B, 3.31%, 7/1/24 * 8,000 8,000 Statewide Community Development Authority, Multifamily Revenue, Dublin, 3.44%, 12/15/37 * 5,010 5,010 Statewide Community Development Authority, Multifamily Revenue, Fairway Properties, 3.44%, 12/15/37 * 5,550 5,550 Statewide Community Development Authority, Multifamily Revenue, Palms Apartments, 3.40%, 5/15/35 * 3,045 3,045 CONTINUED 9 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED CALIFORNIA, CONTINUED Statewide Community Development Authority, Multifamily Revenue, Series X-T, 3.42%, 10/15/32 * $ 1,500 $ 1,500 ------------ 37,545 ------------ COLORADO (0.1%) Denver City & County Airport Revenue, Series D, 3.38%, 11/15/05 * 1,600 1,600 ------------ FLORIDA (0.1%) Lee County Industrial Development Authority Revenue, Suncoast Aluminum, Series B, 3.38%, 10/1/22 * 955 955 ------------ GEORGIA (2.1%) Albany Dougherty, Payroll Development Authority, 3.54%, 7/1/24 * 4,935 4,935 Athens-Clarke County Industrial Development Authority Revenue, Leucadia Inc., Project, 3.43%, 7/1/07 * (c) 3,550 3,550 Atlanta Urban Residential Finance Authority, 3.50%, 1/1/23 * 700 700 Augusta Housing Authority Multifamily Revenue, 3.51%, 5/15/33 * 500 500 Gwinnett County Development Authority, Hopewell Christian Academy, 3.38%, 12/1/21 * 6,300 6,300 Municipal Gas Authority Revenue, 3.52%, 2/1/15 * 7,875 7,875 ------------ 23,860 ------------ ILLINOIS (1.4%) Evanston, Maple Street Parking Facility, 3.45%, 12/1/21 * 2,000 2,000 Financial Authority Revenue, Fairview Obligation, Series D, 3.45%, 8/15/34 * 1,180 1,180 Financial Authority Revenue, Fairview Obligation, Series C, 3.45%, 8/15/34 * 12,595 12,595 ------------ 15,775 ------------ INDIANA (2.6%) Health Facilities Financing Authority Revenue, 3.36%, 4/1/24 * 4,995 4,995 Health Facilities Financing Authority, Hospital Revenue, Community Foundation of Northwest Indiana, Series B, 3.45%, 8/1/25 * 24,375 24,375 Indianapolis Economic Development Multifamily Housing Revenue, Series B, 3.55%, 11/1/36 * 991 991 ------------ 30,361 ------------ IOWA (0.5%) Finance Authority Retirement Community Revenue, 3.45%, 12/1/20 * 5,315 5,315 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED KENTUCKY (0.5%) Boone County Industrial Revenue, 3.53%, 6/1/23 * $ 5,395 $ 5,395 ------------ MICHIGAN (3.9%) Canton Charter Township, General Obligation, 3.58%, 3/1/11 * 1,500 1,500 Commerce Charter Township, Downtown Development, 3.56%, 10/1/18 * 13,000 13,000 Commerce Charter Township, Downtown Development, 3.53%, 10/1/34 * 15,000 15,000 Kent County, 3.49%, 3/1/08 * 12,000 12,000 Ypsilanti Charter Township, Taxable Capital Improvements, Series B, 3.58%, 4/1/19 * 4,745 4,745 ------------ 46,245 ------------ MINNESOTA (0.4%) Plymouth Revenue, Carlson Center Project, 3.43%, 4/1/12 * 1,200 1,200 St. Paul Port Authority District, 3.39%, 3/1/22 * 3,655 3,655 ------------ 4,855 ------------ MISSOURI (0.8%) Kansas City Industrial Development Authority, Taxable Downtown Arena, 3.52%, 4/1/40 * 8,930 8,930 ------------ NEBRASKA (1.0%) Omaha Special Obligation, Riverfront Redevelopment, 3.58%, 2/1/26 * 11,765 11,765 ------------ NEW MEXICO (0.3%) Albuquerque Industrial Revenue, KTECH Corp. Project, 3.42%, 11/1/22 * 1,900 1,900 Chaves County Revenue, 3.38%, 8/1/09 * 1,890 1,890 ------------ 3,790 ------------ NEW YORK (0.4%) Housing Finance Agency, Service Contract Revenue, Series F, 3.35%, 9/15/07 * 4,700 4,700 ------------ NORTH CAROLINA (0.8%) Roman Catholic Diocese, Series A, 3.54%, 6/1/18 * 9,115 9,115 ------------ OHIO (0.8%) Cuyahoga County Ohio Health Care Revenue, 3.54%, 5/15/12 * 3,675 3,675 Richland County, Healthcare Facilities Revenue, Wesleyan, Series B, 3.34%, 11/1/27 * 5,000 5,000 ------------ 8,675 ------------ CONTINUED 10 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED PENNSYLVANIA (0.1%) Berks County Industrial Development Authority Revenue, 3.55%, 7/1/16 * $ 1,600 $ 1,600 ------------ SOUTH CAROLINA (0.3%) Facilities Authority, 3.38%, 6/1/10 * 3,200 3,200 ------------ TEXAS (0.3%) Alamo Heights Higher Education Facilities Corp., 3.59%, 4/1/07 * 1,630 1,630 Houston Health Facilities Development Corp., 3.61%, 2/15/34 * 1,310 1,310 ------------ 2,940 ------------ UTAH (0.3%) Tooele City Industrial Development Revenue, Series A, 3.43%, 10/1/22 * 3,500 3,500 ------------ VIRGINIA (0.5%) Arlington County Industrial Development Authority, 3.43%, 2/1/16 * 5,300 5,300 ------------ WASHINGTON (0.4%) Housing Finance Community Multifamily Housing Revenue, Everett, Series B, 3.41%, 1/15/38 * 2,000 2,000 Housing Finance Community Multifamily Revenue, Granite Falls, Series B, 3.42%, 10/1/27 * 1,260 1,260 Housing Finance Community Multifamily Revenue, Summer Ridge, Series B, 3.39%, 12/1/29 * 860 860 ------------ 4,120 ------------ TOTAL MUNICIPAL BONDS 260,751 ------------ U.S. GOVERNMENT AGENCIES (0.7%) FREDDIE MAC (0.7%) 3.51%, 1/15/42 * 7,891 7,891 ------------ TOTAL U.S. GOVERNMENT AGENCIES 7,891 ------------ REPURCHASE AGREEMENTS (13.2%) State Street, 3.21%, 8/1/05 (Proceeds at maturity, $8,366, Collateralized by a U.S. Treasury Bill, 0.00%, 8/25/05, value $8,533) 8,364 8,364 UBS Investment Bank, 3.29%, 8/1/05 (Proceeds at maturity, $143,039, Collateralized by various U.S. Government Agency securities, 2.63%-5.25%, 10/16/06 - 6/18/14, value $145,861) 143,000 143,000 ------------ TOTAL REPURCHASE AGREEMENTS 151,364 ------------ CONTINUED SHARES VALUE ------------ ------------ MONEY MARKETS (0.3%) AIM Funds Liquid Assets Portfolio - Institutional Class 1,431,217 $ 1,431 Goldman Sachs Financial Square Prime Obligations Fund 1,575,482 1,576 ------------ TOTAL MONEY MARKETS 3,007 ------------ TOTAL INVESTMENTS (COST $1,151,958) (a) - 100.2% 1,151,958 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (2,549) ------------ NET ASSETS - 100.0% $ 1,149,409 ============ SEE NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 11 INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES (75.0%) FANNIE MAE (26.2%) 3.28%, 8/5/05 ** $ 20,602 $ 20,595 3.17%, 8/10/05 ** 3,120 3,118 3.31%, 8/17/05 * 20,000 20,000 3.26%, 8/24/05 ** 22,900 22,852 3.29%, 9/14/05 ** 15,000 14,940 3.27%, 9/15/05 * 10,000 9,999 3.37%, 9/27/05 ** 5,000 4,974 3.42%, 9/28/05 ** 5,000 4,973 2.32%, 9/30/05 2,750 2,745 3.57%, 10/7/05 * 15,000 15,003 3.30%, 10/19/05 ** 5,000 4,964 3.25%, 12/9/05 * 14,750 14,746 2.38%, 12/15/05 500 498 3.23%, 1/9/06 * 11,250 11,248 5.50%, 2/15/06 6,094 6,152 2.25%, 2/28/06 4,655 4,619 ------------ 161,426 ------------ FEDERAL HOME LOAN BANK (25.6%) 3.24%, 8/12/05 ** 15,000 14,985 1.75%, 8/15/05 4,725 4,723 3.25%, 8/15/05 6,440 6,442 2.20%, 8/18/05 3,500 3,500 3.31%, 8/19/05 ** 15,000 14,975 1.50%, 8/26/05 3,000 2,996 2.03%, 8/26/05 2,000 1,998 3.32%, 9/9/05 ** 10,000 9,964 3.31%, 9/16/05 * 25,000 25,000 3.35%, 9/22/05 ** 5,240 5,215 3.22%, 10/12/05 ** 5,000 4,968 2.50%, 11/15/05 5,000 4,983 6.50%, 11/15/05 2,000 2,017 2.50%, 11/18/05 1,375 1,370 3.63%, 12/2/05 ** 2,145 2,119 2.50%, 12/15/05 5,430 5,410 2.18%, 1/30/06 2,240 2,228 3.19%, 2/7/06 5,000 4,991 2.00%, 2/13/06 4,000 3,962 5.38%, 2/15/06 3,500 3,533 5.13%, 3/6/06 6,265 6,319 2.32%, 4/28/06 1,250 1,238 3.47%, 6/14/06 * 25,000 24,998 ------------ 157,934 ------------ CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES, CONTINUED FREDDIE MAC (23.2%) 3.10%, 8/1/05 ** $ 17,000 $ 17,000 1.80%, 8/4/05 3,500 3,500 3.20%, 8/8/05 ** 14,648 14,639 2.88%, 8/9/05 ** 11,500 11,492 3.19%, 8/16/05 ** 15,000 14,980 3.33%, 8/23/05 ** 5,000 4,990 3.25%, 9/6/05 ** 7,775 7,750 3.27%, 9/7/05 ** 10,000 9,967 3.55%, 11/1/05 ** 12,200 12,090 3.18%, 11/7/05 * 14,390 14,390 2.13%, 11/15/05 575 573 2.05%, 11/28/05 4,000 3,990 2.26%, 12/30/05 3,000 2,984 3.51%, 1/15/42 * 24,659 24,659 ------------ 143,004 ------------ TOTAL U.S. GOVERNMENT AGENCIES 462,364 ------------ REPURCHASE AGREEMENTS (24.8%) State Street, 3.21%, 8/1/05 (Proceeds at maturity, $9,536, Collateralized by U.S. Treasury Note, 1.63%, 10/31/05, value $9,725) 9,533 9,533 UBS Investment Bank, 3.29%, 8/1/05 (Proceeds at maturity, $143,039, Collateralized by various U.S. Government Agency securities, 0.00%-7.63%, 8/1/05-12/31/16, value $145,360) 143,000 143,000 ------------ TOTAL REPURCHASE AGREEMENTS 152,533 ------------ MONEY MARKETS (0.2%) AIM Treasury Money Market Fund 1,531,335 1,531 ------------ TOTAL MONEY MARKETS 1,531 ------------ TOTAL INVESTMENTS (COST $616,428) (a) - 100.0% 616,428 LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (247) ------------ NET ASSETS - 100.0% $ 616,181 ============ SEE NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 12 GOVERNMENT MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES (96.4%) FEDERAL FARM CREDIT BANK (25.6%) 3.27%, 8/10/05 * $ 10,000 $ 10,000 2.13%, 8/15/05 5,500 5,498 3.51%, 9/1/05 * 16,000 16,001 3.33%, 10/20/05 * 11,500 11,499 2.40%, 10/27/05 1,250 1,247 2.63%, 12/15/05 2,000 1,992 3.28%, 5/8/06 * 15,000 15,001 ------------ 61,238 ------------ FEDERAL HOME LOAN BANK (70.8%) 3.07%, 8/1/05 ** 10,000 10,000 3.18%, 8/2/05 ** 8,000 7,999 3.20%, 8/3/05 ** 7,000 6,999 1.70%, 8/5/05 2,500 2,500 3.18%, 8/5/05 ** 7,000 6,998 3.10%, 8/8/05 ** 11,119 11,112 3.24%, 8/12/05 ** 14,250 14,236 1.75%, 8/15/05 4,440 4,438 3.25%, 8/15/05 3,550 3,550 3.29%, 8/17/05 ** 6,500 6,491 3.17%, 8/24/05 ** 9,500 9,481 2.25%, 8/30/05 3,850 3,849 3.23%, 8/31/05 ** 5,000 4,987 3.31%, 9/16/05 * 15,000 14,999 3.22%, 10/12/05 ** 2,500 2,484 3.50%, 10/18/05 ** 6,500 6,451 3.50%, 10/19/05 ** 5,000 4,962 2.38%, 11/1/05 4,000 3,988 2.50%, 11/15/05 5,000 4,983 6.50%, 11/15/05 2,000 2,019 2.50%, 12/15/05 2,000 1,993 2.49%, 12/29/05 1,000 995 3.19%, 2/7/06 2,000 1,996 2.00%, 2/13/06 6,525 6,465 2.38%, 2/15/06 3,000 2,979 3.40%, 3/1/06 * 5,000 5,000 5.13%, 3/6/06 2,460 2,482 3.47%, 6/14/06 * 15,000 14,999 ------------ 169,435 ------------ TOTAL U.S. GOVERNMENT AGENCIES 230,673 ------------ CONTINUED SHARES VALUE ------------ ------------ MONEY MARKETS (3.5%) Goldman Sachs Financial Square Federal Fund 7,073,459 $ 7,073 STIT Government Tax Advantage Fund 1,393,013 1,393 ------------ TOTAL MONEY MARKETS 8,466 ------------ TOTAL INVESTMENTS (COST $239,139) (a) - 99.9% 239,139 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 264 ------------ NET ASSETS - 100.0% $ 239,403 ============ SEE NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 13 U.S. TREASURY MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ------------ ------------ TREASURY BILLS (16.5%) 2.87%, 8/4/05 ** $ 35,000 $ 34,992 3.08%, 9/8/05 ** 25,000 24,921 2.99%, 9/22/05 ** 25,000 24,893 3.10%, 10/20/05 ** 40,000 39,726 3.37%, 10/27/05 ** 15,000 14,879 3.15%, 11/3/05 ** 30,000 29,756 3.11%, 11/17/05 ** 10,000 9,908 3.27%, 12/22/05 ** 30,000 29,616 ------------ TOTAL TREASURY BILLS 208,691 ------------ TREASURY NOTES (6.0%) 5.75%, 11/15/05 45,000 45,361 1.63%, 2/28/06 20,000 19,802 4.63%, 5/15/06 10,000 10,074 ------------ TOTAL TREASURY NOTES 75,237 ------------ REPURCHASE AGREEMENTS (77.5%) (b) ABN AMRO, 3.27%, 8/1/05 210,000 210,000 Bank of America, 3.26%, 8/1/05 50,000 50,000 Barclays Capital, 3.24%, 8/1/05 175,000 175,000 Deutsche Bank, 3.27%, 8/1/05 225,000 225,000 Nesbitt Burns, 3.25%, 8/1/05 50,000 50,000 Societe Generale, 3.25%, 8/1/05 50,000 50,000 State Street, 3.18%, 8/1/05 9,269 9,269 UBS Investment Bank, 3.27%, 8/1/05 210,000 210,000 ------------ TOTAL REPURCHASE AGREEMENTS 979,269 ------------ MONEY MARKETS (0.2%) AIM Treasury Money Market Fund 2,944,845 2,945 ------------ TOTAL MONEY MARKETS 2,945 ------------ TOTAL INVESTMENTS (COST $1,266,142) (a) - 100.2% 1,266,142 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (2,681) ------------ NET ASSETS - 100.0% $ 1,263,461 ============ SEE NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ COMMERCIAL PAPER (7.3%) MICHIGAN (7.3%) Building Authority Revenue, 2.55%, 8/25/05 $ 10,000 $ 10,000 Modal, Series 2002 A, GO, 2.00%, 10/4/05 2,000 2,000 ------------ TOTAL COMMERCIAL PAPER 12,000 ------------ MUNICIPAL BONDS (92.8%) MICHIGAN (89.9%) Bay City, Series B, GO, 2.50%, 10/1/05 330 330 Building Authority Revenue, State Police Communications III, 5.00%, 10/1/05 1,700 1,708 Cadillac Area Public Schools, 5.38%, 5/1/17, (Prerefunded 5/1/06 @ 100) 1,665 1,697 Detroit City School District, 5.50%, 5/1/06 1,730 1,765 Detroit Waterfront Reclamation, Series C, 2.49%, 5/1/09 * 7,405 7,405 Farmington Hills Economic Development Corp., Marketing Displays, (AMT), 2.60%, 9/1/08 * 655 655 Forest Hills Public Schools, 3.00%, 5/1/06 1,225 1,228 Genesee County Economic Development Corp., Rawcar Group, (AMT), 2.45%, 5/1/20 * 2,190 2,190 Hospital Finance Authority Revenue Balmoral, Inc., 1.75%, 9/1/16 * (c) 555 555 Hospital Financial Authority Revenue, Crittenton Hospital, Series A, 2.34%, 3/1/14 * 700 700 Hospital Financial Authority Revenue, Hospital Equipment Loan Program, 2.38%, 12/1/23 * 60 60 Housing Development Authority, Hunt Club Apartments, 2.37%, 7/15/35 * 500 500 Housing Development Authority, Limited Obligation Revenue, Shoal Creek, 2.33%, 10/1/07 * 2,100 2,100 Housing Development Authority, Ltd., 2.35%, 6/1/25 * 150 150 Housing Development Authority, Ltd., 2.38%, 1/1/29 * (c) 3,800 3,800 Housing Development Authority, Rental Housing Revenue, Series B, 1.90%, 10/1/05 1,065 1,065 Housing Development Authority, Series A, 2.39%, 9/1/35 * 6,900 6,900 CONTINUED 14 MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Jackson County Hospital Financial Authority, Hospital Revenue, W.A. Foote Memorial Hospital-B, 2.35%, 6/1/26 * $ 2,950 $ 2,950 Leelanau County Economic Development Corp., American Community Mutual Insurance Co., 3.00%, 6/15/06 * 345 345 Mancelona Area Water, Sewer Authority, Water Supply Systems Revenue, 2.40%, 4/1/21 * 890 890 Marquette City Hospital Finance, Marquette General Hospital Group, 2.35%, 7/1/09 * 2,255 2,255 Marquette County Economic Development Corp., Pioneer Labs, Inc., Series A, (AMT), 2.65%, 6/1/12 * 800 800 Municipal Bond Authority, Clean Water Revolving Fund, 5.00%, 10/1/05 200 201 Municipal Building Authority Revenue, Series B-1, 3.00%, 8/19/05 1,000 1,001 Novi, GO, 4.90%, 10/1/05 250 251 Oakland County Economic Development Corp., Limited Obligation Revenue, Moody Family, Ltd., (AMT), 2.50%, 9/1/12 * (c) 2,035 2,035 Oakland County Economic Development Corp., North America, (AMT), 2.50%, 7/1/18 * (c) 1,600 1,600 South Central Power Agency, Power Supply System Revenue, 5.80%, 11/1/05 1,935 1,953 Southfield Economic Development, Lawrence Technical University Project, 2.35%, 10/1/31 * 3,000 3,000 St. Clair Shores Economic Development Corp., Borman's, Inc., (AMT), 3.18%, 10/15/06 * 350 350 State Building Authority Revenue, Facilities Program, Series I, 5.00%, 10/15/05 1,000 1,007 State Hospital Financial Authority Revenue, Holland Community Hospital, Series B, 2.35%, 1/1/34 * 1,400 1,400 State, Series A, GO, 3.50%, 9/30/05 4,000 4,010 Sterling Heights Economic Development Corp., Sterling Shopping Center, 2.37%, 12/1/10 * 670 670 Strategic Fund, Automatic Spring, (AMT), 2.65%, 9/1/10 * 1,300 1,300 Strategic Fund, Banks Hardwoods, Inc., (AMT), 2.49%, 7/1/12 * (c) 882 882 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Biewer of Lansing, (AMT), 2.49%, 5/1/19 * $ 1,165 $ 1,165 Strategic Fund, Brazing Concepts Co., (AMT), 2.50%, 9/1/18 * 1,900 1,900 Strategic Fund, Donnelly Corp., Series A, (AMT), 2.40%, 3/1/10 * (c) 4,500 4,500 Strategic Fund, Donnelly Corp., Series B, (AMT), 2.55%, 4/1/08 * (c) 2,500 2,500 Strategic Fund, Emerson Schools, 2.42%, 7/1/24 * 2,615 2,615 Strategic Fund, Environmental Powder Co., (AMT), 2.50%, 7/1/22 * 235 235 Strategic Fund, Fitz-Land LLC, (AMT), 2.45%, 8/1/25 * 2,535 2,535 Strategic Fund, Fleet Engineers Project, (AMT), 2.50%, 9/1/09 * (c) 600 600 Strategic Fund, Forest City Technologies, (AMT), 2.45%, 9/1/15 * 1,700 1,700 Strategic Fund, Frederick Wolfgang, (AMT), 2.50%, 9/1/26 * 820 820 Strategic Fund, Glastender, Inc., (AMT), 2.50%, 9/1/08 * (c) 915 915 Strategic Fund, HP Pelzer, Inc., (AMT), 2.50%, 3/1/11 * (c) 800 800 Strategic Fund, Jedco, Inc., (AMT), 2.50%, 11/1/15 * 2,320 2,320 Strategic Fund, John Dekker & Sons, (AMT), 2.50%, 1/1/18 * 390 390 Strategic Fund, Joy Properties LLC, 2.50%, 5/1/17 * (c) 580 580 Strategic Fund, Kaspari Investments LLC, (AMT), 2.50%, 6/1/09 * 100 100 Strategic Fund, Kazoo, Inc., (AMT), 2.55%, 3/15/07 * 180 180 Strategic Fund, Kundinger, (AMT), 2.50%, 2/1/29 * (c) 1,185 1,185 Strategic Fund, Limited Obligated Revenue, Oak Industrial Drive Project, (AMT), 2.50%, 11/1/33 * 1,000 1,000 Strategic Fund, Limited Obligation Revenue, All American Property LLC, (AMT), 2.50%, 12/1/18 * 800 800 Strategic Fund, Limited Obligation Revenue, American Litho Project, (AMT), 2.59%, 2/1/31 * 3,125 3,125 Strategic Fund, Limited Obligation Revenue, Besser International Sales Co. Project, (AMT), 2.50%, 9/1/11 * (c) 400 400 Strategic Fund, Limited Obligation Revenue, BK Real Estate Project, (AMT), 2.47%, 12/1/23 * 1,990 1,990 CONTINUED 15 MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Limited Obligation Revenue, Bowers Manufacturing Co. (AMT), 2.50%, 9/1/10 * (c) $ 600 $ 600 Strategic Fund, Limited Obligation Revenue, Cayman Chemical Company Project, (AMT), 2.45%, 6/1/28 * (c) 930 930 Strategic Fund, Limited Obligation Revenue, Creative Foam Corp. (AMT), 2.50%, 11/1/11 * (c) 2,400 2,400 Strategic Fund, Limited Obligation Revenue, Delta Containers, Inc. (AMT), 2.50%, 3/1/11 * 2,100 2,100 Strategic Fund, Limited Obligation Revenue, Eclipse Mold (AMT), 2.50%, 12/1/12 * (c) 600 600 Strategic Fund, Limited Obligation Revenue, Flyer Fund Leasing LLC Project, 2.50%, 11/1/17 * (c) 1,400 1,400 Strategic Fund, Limited Obligation Revenue, Gebara Management Co. LLC Project, 2.50%, 11/1/13 * 300 300 Strategic Fund, Limited Obligation Revenue, Harbor Industries, Inc. Project, (AMT), 2.65%, 4/1/25 * 300 300 Strategic Fund, Limited Obligation Revenue, Jet Enterprises, (AMT), 2.59%, 3/1/11 * (c) 700 700 Strategic Fund, Limited Obligation Revenue, Lakeport Realty Project, 2.50%, 6/1/07 * (c) 385 385 Strategic Fund, Limited Obligation Revenue, Landscape Forms, Inc. Project, (AMT), 2.50%, 5/1/14 * (c) 200 200 Strategic Fund, Limited Obligation Revenue, Metal Technologies Project, (AMT), 2.45%, 7/1/19 * 2,000 2,000 Strategic Fund, Limited Obligation Revenue, Midwest Kellering Co. Project, (AMT), 2.50%, 6/1/19 * 1,700 1,700 Strategic Fund, Limited Obligation Revenue, Production Engineering Project, (AMT), 2.45%, 6/1/13 * (c) 1,600 1,600 Strategic Fund, Limited Obligation Revenue, R. L. Adams Plastics, Inc., (AMT), 2.50%, 5/1/23 * (c) 2,160 2,160 Strategic Fund, Limited Obligation Revenue, RA Rink, LLC Project, (AMT), 2.50%, 11/1/17 * (c) 1,140 1,140 Strategic Fund, Limited Obligation Revenue, RL Enterprises LLC (AMT), 2.50%, 12/1/09 * (c) 500 500 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Limited Obligation Revenue, S.K.Y. Sakaiya Corp. Project, (AMT), 2.46%, 5/1/10 * (c) $ 700 $ 700 Strategic Fund, Limited Obligation Revenue, Whitehall Industries, Inc. Project, (AMT), 2.50%, 3/1/25 * 100 100 Strategic Fund, Limited Obligation Revenue, Whitehall Industries, Inc., (AMT), 2.50%, 11/1/20 * 300 300 Strategic Fund, Lions Bear Lake Camp Project, 2.45%, 8/1/32 * 1,110 1,110 Strategic Fund, MacArthur, (AMT), 2.50%, 6/1/15 * 2,100 2,100 Strategic Fund, Maco Steel, Inc., (AMT), 2.50%, 3/1/24 * 1,640 1,640 Strategic Fund, Merrill Group, (AMT), 2.56%, 10/1/22 * (c) 1,140 1,140 Strategic Fund, Middleville Tool & Die Project, (AMT), 2.50%, 9/1/13 * (c) 2,500 2,500 Strategic Fund, Patten Monument, (AMT), 2.50%, 11/1/26 * 710 710 Strategic Fund, Phipps Emmett Association, (AMT), 2.65%, 12/1/23 * 2,000 2,000 Strategic Fund, Proto-Techniques, (AMT), 2.50%, 12/1/26 * (c) 2,535 2,535 Strategic Fund, Protomark Corp. Project, (AMT), 2.50%, 8/1/17 * (c) 400 400 Strategic Fund, SFI Acquisition, Inc., (AMT), 2.50%, 2/1/28 * (c) 990 990 Strategic Fund, Stegner East Investments LLC Project, (AMT), 2.50%, 6/1/29 * (c) 3,090 3,090 Strategic Fund, Thompson Family Holdings, (AMT), 2.55%, 7/1/28 * 910 910 Strategic Fund, Trenton Forging Co., (AMT), 2.45%, 6/1/20 * (c) 1,165 1,165 Strategic Fund, Trio Tool Co., (AMT), 2.57%, 7/1/24 * 1,325 1,325 Strategic Fund, Ultra Tech Printing Co., (AMT), 2.50%, 8/1/23 * 1,190 1,190 Strategic Fund, Waltec American Forging, (AMT), 2.50%, 10/1/09 * (c) 1,615 1,615 Strategic Fund, Warren Screw Products, Inc., (AMT), 2.50%, 9/1/16 * (c) 500 500 Strategic Fund, Wright K Technology, Inc., (AMT), 2.55%, 5/1/17 * 645 645 Strategic Fund, YMCA Detroit Project, 2.43%, 5/1/31 * 1,000 1,000 University of Michigan, Medical Service Plan, Series A-1, 2.33%, 12/1/21 * 2,000 2,000 University of Michigan, Series A-2, 2.33%, 12/1/24 * 2,690 2,690 CONTINUED 16 MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Walled Lake Consolidated School District, 3.00%, 5/1/06 $ 500 $ 501 Warren Economic Development Corp., Limited Obligation, CMX Corp., (AMT), 2.55%, 3/15/07 * 525 525 Wayne Charter County Airport, (AMT), 5.25%, 12/1/05 2,545 2,570 Wayne Charter County, Airport Revenue, Detroit Metropolitan, Series D, 5.25%, 12/1/05 1,035 1,045 ------------ 148,074 ------------ PUERTO RICO (2.9%) Industrial Medical & Environmental Pollution Control, Facilities Financing Authority, Abbott Laboratories, 2.55%, 3/1/23 * (c) 4,695 4,695 ------------ TOTAL MUNICIPAL BONDS 152,769 ------------ MONEY MARKETS (0.4%) AIM Tax Free Money Market Fund 14,222 14 Dreyfus Tax Exempt Money Market Fund 117,837 118 Goldman Sachs Financial Tax Free Money Market Fund 385,357 385 Merrill Lynch Institutional Tax Exempt Fund 83,637 84 ------------ TOTAL MONEY MARKETS 601 ------------ TOTAL INVESTMENTS (COST $165,370) (a) - 100.5% 165,370 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (856) ------------ NET ASSETS - 100.0% $ 164,514 ============ SEE NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ COMMERCIAL PAPER (4.5%) ARIZONA (2.2%) Mesa, 2.45%, 11/14/05 $ 4,970 $ 4,970 ------------ MICHIGAN (2.3%) Building Authority Revenue, 2.55%, 8/25/05 5,000 5,000 ------------ TOTAL COMMERCIAL PAPER 9,970 ------------ MUNICIPAL BONDS (95.1%) COLORADO (8.3%) Arapahoe County Water and Wastewater Authority Revenue, Series A, 2.36%, 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 Central Platte Valley Metropolitan District, 2.30%, 12/1/31 * 500 500 Colorado Springs, Pikes Peak YMCA, 2.35%, 11/1/22 * 800 800 Colorado Springs, Revenue, National Strength and Condition, 2.45%, 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, 2.45%, 12/15/14 * 725 725 Educational and Cultural Facility Authority Revenue, Community Wireless Park City, 2.38%, 12/1/23 * 765 765 Holland Creek, 2.41%, 6/1/41 * 740 740 Parker, Automotive Metropolitan District, 2.85%, 12/1/34 * 2,000 2,000 Pinery West Metropolitan District No. 2, 1.95%, 11/1/32 * 3,200 3,200 ------------ 18,475 ------------ GEORGIA (1.4%) Dekalb County, Development Authority Revenue, Oglethorpe University, 2.35%, 10/1/29 * 1,000 1,000 Fulton County, Development Authority Revenue, Holy Innocents Episcopal, 2.35%, 8/1/24 * 2,100 2,100 ------------ 3,100 ------------ IDAHO (1.2%) Power County, Pollution Control Revenue, FMC Corp. Project, 2.33%, 12/1/10 * 2,680 2,680 ------------ ILLINOIS (16.6%) Development Finance Authority, 2.32%, 4/1/32 * 2,000 2,000 CONTINUED 17 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED ILLINOIS, CONTINUED Development Finance Authority Revenue, McCormick Theological, Series B, 2.32%, 6/1/35 * $ 2,000 $ 2,000 Development Finance Authority Revenue, St. Anne Place Project, 2.48%, 6/1/22 * 2,970 2,970 Development Finance Authority, WTVP Channel 47, Series A, Lake County Family YMCA, 2.39%, 9/1/22 * 3,650 3,650 Development Financial Authority Pollution Control Revenue, Diamond Star Motors Project, 2.34%, 12/1/08 * (c) 2,500 2,500 Development Financial Authority Revenue, World Communications, Inc., 2.35%, 8/1/15 * 875 875 Educational Facilities Authority, Field Museum of Natural History, 2.35%, 11/1/25 * (c) 4,900 4,900 Educational Facilities Authority, Lake County Family YMCA, 2.35%, 11/1/30 * 1,450 1,450 Galesburg, Knox College, 2.34%, 7/1/24 * 2,400 2,400 Health Facilities Authority, 2.34%, 1/1/16 * (c) 2,000 2,000 Lake Villa, Allendale Association, 2.40%, 10/1/26 * 4,835 4,835 Macon County, Millikin University, 2.36%, 10/1/31 * 1,300 1,300 Peoria, Peoria Academy, 2.45%, 9/1/26 * 4,400 4,400 Rock Island County Public Building Commission, Justice Center, 4.35%, 12/1/05 205 206 Springfield Community Improvement, 2.32%, 12/1/25 * 1,000 1,000 Springfield Electric Revenue, 6.00%, 3/1/06 400 408 ------------ 36,894 ------------ INDIANA (11.7%) Bluffton-Harrison High School Building Corp., 3.00%, 8/1/05 240 240 Crawfordsville, Economic Development, Autumn Woods Apartments, Series A, 2.36%, 1/1/30 * 3,381 3,381 Dekko Foundation Educational Facilities Revenue, Series I, 2.55%, 4/1/21 * (c) 650 650 Development Financial Authority Revenue, Industrial Development Revenue, Indiana University Foundation Project, 2.40%, 8/1/18 * (c) 1,800 1,800 Development Financial Authority, Mental Health, 2.45%, 12/1/22 * (c) 3,600 3,600 Development Financial Authority, Regional Council of Carpenters, 2.45%, 9/1/31 * 1,420 1,420 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED INDIANA, CONTINUED Economic Development Revenue, Morningside College, 2.36%, 8/1/22 * (c) $ 4,785 $ 4,785 Educational Facility Authority Revenue, 2.34%, 12/1/08 * 1,500 1,500 Greenfield, Economic Development, 2.61%, 9/1/05 * (c) 50 50 Hamilton Southeastern Consolidated School Building Corp., 3.00%, 1/10/06 290 291 Healthcare Facilities Revenue, Southern Indiana Rehabilitation Hospital, 2.45%, 4/1/20 * 1,650 1,650 Indianapolis, State Development Finance Authority, Lutheran Educational Facilities Project, 2.44%, 10/1/17 * (c) 2,555 2,555 Mount Vernon of Hancock County Multi-School Building Corp., 4.00%, 1/15/06 320 322 Plymouth Multi-School Building Corp., 3.00%, 1/10/06 750 751 Saint Joseph County, Economic Development Revenue, 2.45%, 6/1/22 * 2,500 2,500 West Clark School Building Corp., 3.00%, 1/15/06 495 496 ------------ 25,991 ------------ IOWA (2.5%) Financial Authority, Diocese of Sioux City, 2.35%, 3/1/19 * 1,640 1,640 Hills, Healthcare Revenue, Mercy Hospital Project, 2.30%, 8/1/32 * 4,000 4,000 ------------ 5,640 ------------ MARYLAND (0.4%) Baltimore County Economic Development Revenue, Garrison Forest School Project, 2.33%, 6/1/26 * 850 850 ------------ MICHIGAN (14.2%) Detroit Sewage Disposal Revenue, 2.30%, 7/1/33 * 8,000 8,000 Hospital Financial Authority Revenue, Crittenton Hospital, Series A, 2.34%, 3/1/14 * 7,025 7,025 Hospital Financial Authority Revenue, Crittenton Hospital, Series A, 2.34%, 3/1/30 * 2,500 2,500 Jackson Public Schools, 3.00%, 8/23/05 1,000 1,001 Mancelona Area Water, Sewer Authority, Water Supply Systems Revenue, 2.40%, 4/1/21 * 100 100 Strategic Fund, Limited Obligation Revenue, Detroit Symphony Project, Series B, 2.33%, 6/1/31 * 1,000 1,000 CONTINUED 18 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Limited Obligation Revenue, Henry Ford Museum Village Project, 2.32%, 12/1/33 * $ 100 $ 100 Strategic Fund, Limited Obligation Revenue, Lansing Saint Vincent Home Project, 2.34%, 8/1/28 * 6,645 6,645 University of Michigan Hospital Revenue, Series A, 2.33%, 12/1/19 * 2,930 2,930 University of Michigan, Medical Service Plan, Series A-1, 2.33%, 12/1/21 * 1,000 1,000 University of Michigan, Series A-2, 2.33%, 12/1/24 * 1,200 1,200 ------------ 31,501 ------------ MINNESOTA (3.1%) Lauderdale, Children's Home Society, 2.40%, 12/1/30 * 625 625 Minneapolis, Minnehaha Academy Project, 2.40%, 5/1/26 * 3,600 3,600 Roseville Health Care Facilities Revenue, Presbyterian Homes Project, 2.35%, 10/1/29 * 2,730 2,730 ------------ 6,955 ------------ MISSOURI (2.9%) State Health & Educational Facilities Authority, Drury University, 2.35%, 8/15/28 * 1,775 1,775 State Health & Educational Facilities Authority, Missouri Valley College, 2.35%, 10/1/31 * 1,700 1,700 State Public Utilities Revenue, 2.75%, 10/1/05 3,000 3,005 ------------ 6,480 ------------ NORTH CAROLINA (0.5%) Lee County Industrial Facilities & Pollution Control Funding Authority Revenue, Trion, Inc. Project, 2.44%, 11/1/11 * (c) 1,000 1,000 ------------ OHIO (8.6%) Butler County, Healthcare Facilities, 2.35%, 5/1/27 * 1,000 1,000 Columbiana County, Revenue, East Liverpool, 2.40%, 10/1/23 * 4,985 4,985 Coshocton County, Hospital Revenue, 2.45%, 3/1/14 * (c) 200 200 Higher Education, Capital Facilities Revenue, Series II-A, 5.25%, 12/1/05 2,000 2,020 Independence, Economic Development Revenue, 2.40%, 12/1/16 * 2,770 2,770 Montgomery County, Economic Development, Benjamin & Marian Arts Center, Series A, 2.40%, 4/1/11 * 2,000 2,000 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED OHIO, CONTINUED Montgomery County, Economic Development, The Dayton Art Institute, 2.40%, 5/1/26 * $ 1,400 $ 1,400 Montgomery County, Health Care Facilities, Community Blood Center, 2.45%, 12/1/20 * 1,685 1,685 State Higher Education Facilities Revenue, Ashland University Project, 2.38%, 9/1/24 * 2,000 2,000 Summit County, Industrial Development Revenue, SSP Fittings Corporate Project, 2.45%, 9/1/11 * 955 955 ------------ 19,015 ------------ PENNSYLVANIA (11.4%) Allegheny County, Industrial Development Authority Revenue, Sacred Heart High School, 2.39%, 6/1/22 * 1,200 1,200 Allegheny County, Industrial Development Authority Revenue, Sewickley Academy, Series A, 2.42%, 11/1/22 * 1,100 1,100 Chester County, Industrial Development Authority Revenue, Archdiocese of Philadelphia, 2.27%, 7/1/31 * 16,330 16,330 Donegal School District, 3.00%, 10/1/05 175 175 North Wales Water Authority, 2.75%, 10/1/05 2,000 2,003 Philadelphia Authority for Industrial Development Revenues, Newcourtland Elderly Services Project, 2.27%, 3/1/27 * 3,000 3,000 Schuylkill County, Industrial Development Authority, Northeastern Power Co., 2.38%, 12/1/22 * 1,500 1,500 ------------ 25,308 ------------ TENNESSEE (2.5%) Clarksville Public Building Authority Revenue, Pooled Funding, Municipal Bond Fund, 2.34%, 7/1/31 * 1,405 1,405 Clarksville, Public Building Authority Revenue, Pooled Funding, Municipal Bond Fund, 2.34%, 7/1/34 * 4,135 4,135 ------------ 5,540 ------------ TEXAS (1.9%) State Tax & Revenue, 3.00%, 8/31/05 4,000 4,005 Tyler Water & Sewer Systems, Revenue, 3.00%, 9/1/05 205 205 ------------ 4,210 ------------ UTAH (3.0%) Salt Lake County Training Facilities Revenue, Community Foundation Disabled Project, 2.45%, 8/1/30 * 1,540 1,540 Weber County Industrial Revenue, Enable Industries, Inc., 2.45%, 12/1/15 * 1,095 1,095 CONTINUED 19 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2005 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED UTAH, CONTINUED West Valley City Industrial Development Revenue, Johnson Matthey, Inc. Project, 2.34%, 12/1/11 * (c) $ 4,000 $ 4,000 ------------ 6,635 ------------ VIRGINIA (0.7%) Suffolk Redevelopment & Housing Authority, Multi-Family Housing Revenue, North Beach Apartments, 2.45%, 9/1/19 * (c) 1,500 1,500 ------------ WASHINGTON (4.2%) Bremerton Revenue, 2.39%, 12/1/28 * 3,100 3,100 Ferndale Water & Sewer Revenue, 3.00%, 11/1/05 120 120 Health Care Facilities Authority Revenue, Inland Northwest Blood, 2.39%, 8/1/26 * 4,140 4,140 Port Olympia, 3.00%, 12/1/05 355 355 Richland Gold Enterprises Revenue, 2.34%, 12/1/21 * (c) 1,400 1,400 Snohomish County School District No. 332, Granite Falls, 3.50%, 12/1/05 300 301 ------------ 9,416 ------------ TOTAL MUNICIPAL BONDS 211,190 ------------ CONTINUED SHARES VALUE ------------ ------------ MONEY MARKETS (0.4%) AIM Tax Free Money Market Fund 2,458 $ 2 Dreyfus Tax Exempt Money Market Fund 424,432 424 Goldman Sachs Financial Tax Free Money Market Fund 557,163 557 ------------ TOTAL MONEY MARKETS 983 ------------ TOTAL INVESTMENTS (COST $222,143) (a) - 100.0% 222,143 LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (51) ------------ NET ASSETS - 100.0% $ 222,092 ============ NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS * Variable rate security. Rate presented represents the rate in effect at July 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 $9,271 to $225,061. Collateralized by various U.S. Treasury securities, 3.18%-3.27%, 8/1/05, value $998,862. (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 This page intentionally left blank. FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2005 (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 $ 1,240,626 $ 1,000,594 $ 463,895 Repurchase agreements, at cost 156,261 151,364 152,533 ----------- ------------ --------------- Total Investments, at value 1,396,887 1,151,958 616,428 Cash -- 1 --^ Interest receivable 5,699 5,671 1,454 Receivable for investments sold 41,995 -- -- Receivable from Advisor and affiliates 10 14 11 Prepaid expenses and other assets 39 11 17 ----------- ------------ --------------- Total Assets 1,444,630 1,157,655 617,910 ----------- ------------ --------------- LIABILITIES: Payable to Custodian -- -- -- Distributions payable 3,288 3,053 1,567 Payable for investments purchased 14,634 5,006 -- Accrued expenses and other payables: Payable to Advisor and affiliates 521 133 75 Distribution and administrative services fees 98 10 54 Other 107 44 33 ----------- ------------ --------------- Total Liabilities 18,648 8,246 1,729 ----------- ------------ --------------- NET ASSETS: Paid-in Capital $ 1,425,996 $ 1,149,381 $ 616,174 Accumulated net investment income 85 29 7 Accumulated net realized loss from investment transactions (99) (1) --^ ----------- ------------ --------------- Net Assets $ 1,425,982 $ 1,149,409 $ 616,181 =========== ============ =============== Net Assets: Institutional Shares $ 958,735 $ 1,077,260 $ 264,707 Class A Shares 464,391 NA NA Class B Shares 1,340 NA NA Class C Shares 1,474 NA NA Advisor Shares 42 NA NA Select Shares NA 23,924 2,176 Preferred Shares NA 23,178 228,555 Trust Shares NA 25,047 120,743 ----------- ------------ --------------- Total $ 1,425,982 $ 1,149,409 $ 616,181 =========== ============ =============== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 958,784 1,077,234 264,704 Class A Shares 464,396 NA NA Class B Shares 1,341 NA NA Class C Shares 1,475 NA NA Advisor Shares 42 NA NA Select Shares NA 23,924 2,176 Preferred Shares NA 23,177 228,554 Trust Shares NA 25,047 120,742 ----------- ------------ --------------- Total 1,426,038 1,149,382 616,176 =========== ============ =============== 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 JULY 31, 2005 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- MICHIGAN GOVERNMENT U.S. TREASURY MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET ASSETS: FUND FUND FUND FUND ------------ ------------ ------------ ----------- Investments, at amortized cost $ 239,139 $ 286,873 $ 165,370 $ 222,143 Repurchase agreements, at cost -- 979,269 -- -- ----------- ------------ ------------ ----------- Total Investments, at value 239,139 1,266,142 165,370 222,143 Cash -- --^ -- -- Interest receivable 891 1,056 716 652 Receivable for investments sold -- -- -- -- Receivable from Advisor and affiliates -- 12 2 5 Prepaid expenses and other assets 20 23 6 26 ----------- ------------ ------------ ----------- Total Assets 240,050 1,267,233 166,094 222,826 ----------- ------------ ------------ ----------- LIABILITIES: Payable to Custodian -- -- -- 62 Distributions payable 515 3,340 266 312 Payable for investments purchased -- -- 1,228 301 Accrued expenses and other payables: Payable to Advisor and affiliates 90 150 66 52 Distribution and administrative services fees 17 138 --^ 7 Other 25 144 20 --^ ----------- ------------ ------------ ----------- Total Liabilities 647 3,772 1,580 734 ----------- ------------ ------------ ----------- NET ASSETS: Paid-in Capital $ 239,377 $ 1,263,606 $ 164,524 $ 222,097 Accumulated net investment income 28 --^ (10) --^ Accumulated net realized loss from investment transactions (2) (145) -- (5) ----------- ------------ ------------ ----------- Net Assets $ 239,403 $ 1,263,461 $ 164,514 $ 222,092 =========== ============ ============ =========== Net Assets: Institutional Shares $ 144,028 $ 295,584 $ 164,404 $ 187,829 Class A Shares 95,375 NA 110 25,516 Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA 83,171 NA 86 Preferred Shares NA 766,688 NA 36 Trust Shares NA 118,018 NA 8,625 ----------- ------------ ------------ ----------- Total $ 239,403 $ 1,263,461 $ 164,514 $ 222,092 =========== ============ ============ =========== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 144,071 295,516 164,363 187,826 Class A Shares 95,429 NA 110 25,528 Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA 83,169 NA 86 Preferred Shares NA 766,664 NA 36 Trust Shares NA 118,015 NA 8,625 ----------- ------------ ------------ ----------- Total 239,500 1,263,364 164,473 222,101 =========== ============ ============ =========== 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 YEAR ENDED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INSTITUTIONAL PRIME INSTITUTIONAL GOVERNMENT MONEY MARKET MONEY MARKET MONEY FUND FUND MARKET FUND ------------ ------------ ------------- INVESTMENT INCOME: Interest income $ 35,445 $ 28,608 $ 14,159 Dividend income 305 272 104 ------------ ------------ ------------- Total Investment Income 35,750 28,880 14,263 ------------ ------------ ------------- EXPENSES: Investment advisory fees 5,915 4,707 2,415 Administrative fees 2,602 2,061 1,058 Distribution services fees--Class A Shares 1,022 NA NA Distribution services fees--Class B Shares 38 NA NA Distribution services fees--Class C Shares 14 NA NA Distribution services fees--Advisor Shares --^ NA NA Administrative services fees--Class C Shares 5 NA NA Administrative services fees--Select Shares NA 14 4 Administrative services fees--Preferred Shares NA 55 393 Administrative services fees--Trust Shares NA 52 291 Accounting fees 278 233 151 Transfer and dividend disbursing agent fees 331 256 144 Custody fees 62 52 37 Trustees' fees and expenses 41 31 16 Other expenses 415 261 176 ------------ ------------ ------------- Total expenses 10,723 7,722 4,685 ------------ ------------ ------------- Less:Waiver and/or reimbursement from Advisor and/or affiliates (1,647) (5,083) (2,699) Transfer and dividend disbursing agent fees waived (13) (10) (9) Distribution services--Class A Shares, Class B Shares, Class C Shares and Advisor Shares waived (2) -- -- - ---------- ------------ ------------ ------------- Net Expenses 9,061 2,629 1,977 ------------ ------------ ------------- Net Investment Income 26,689 26,251 12,286 ------------ ------------ ------------- Net realized gains/(losses) from investment transactions (99) (1) --^ ------------ ------------ ------------- Change in net assets resulting from operations $ 26,590 $ 26,250 $ 12,286 ============ ============ ============= FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2005 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- MICHIGAN GOVERNMENT U.S. TREASURY MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET FUND FUND FUND FUND ------------ ------------ ------------ ------------ INVESTMENT INCOME: Interest income $ 6,112 $ 32,223 $ 3,578 $ 3,568 Dividend income 203 155 79 47 ------------ ------------ ------------ ----------- Total Investment Income 6,315 32,378 3,657 3,615 ------------ ------------ ------------ ----------- EXPENSES: Investment advisory fees 1,102 5,828 747 933 Administrative fees 483 2,557 327 335 Distribution services fees--Class A Shares 261 NA --^ 62 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 69 NA --^ Administrative services fees--Preferred Shares NA 1,306 NA --^ Administrative services fees--Trust Shares NA 347 NA 9 Accounting fees 69 264 55 77 Transfer and dividend disbursing agent fees 75 319 47 59 Custody fees 24 105 23 21 Trustees' fees and expenses 8 44 5 5 Other expenses 99 413 56 72 ------------ ------------ ------------ ----------- Total expenses 2,121 11,252 1,260 1,573 ------------ ------------ ------------ ----------- Less:Waiver and/or reimbursement from Advisor and/or affiliates (248) (6,405) (250) (792) Transfer and dividend disbursing agent fees waived (2) (11) (1) (1) Distribution services--Class A Shares, Class B Shares, Class C Shares and Advisor Shares waived (52) -- --^ -- - --------- ------------ ------------ ------------ ----------- Net Expenses 1,819 4,836 1,009 780 ------------ ------------ ------------ ----------- Net Investment Income 4,496 27,542 2,648 2,835 ------------ ------------ ------------ ----------- Net realized gains/(losses) from investment transactions --^ 13 --^ -- ------------ ------------ ------------ ----------- Change in net assets resulting from operations $ 4,496 $ 27,555 $ 2,648 $ 2,835 ============ ============ ============ =========== - ------------------ ^ 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 INSTITUTIONAL GOVERNMENT MONEY MARKET MONEY MARKET MONEY MARKET FUND FUND FUND ------------------------- ------------------------- ----------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2005 2004 2005 2004 (a) 2005 2004 (a) ----------- ----------- ----------- ----------- ---------- ---------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 26,689 $ 10,139 $ 26,251 $ 8,935 $ 12,286 $ 4,419 Net realized gains (losses) from investment transactions (99) 30 (1) 14 --^ 1 ----------- ----------- ----------- ----------- ---------- ---------- Change in net assets resulting from operations 26,590 10,169 26,250 8,949 12,286 4,420 ----------- ----------- ----------- ----------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Institutional Shares (19,802) (8,538) (24,724) (8,709) (4,760) (2,186) Class A Shares (6,827) (1,594) NA NA NA NA Class B Shares (43) (4) NA NA NA NA Class C Shares (16) (3) NA NA NA NA Advisor Shares (1) --^ NA NA NA NA Select Shares NA NA (380) (60) (94) (40) Preferred Shares NA NA (726) (97) (5,145) (1,740) Trust Shares NA NA (421) (69) (2,287) (453) ----------- ----------- ----------- ----------- ---------- ---------- Change in net assets from shareholder distributions (26,689) (10,139) (26,251) (8,935) (12,286) (4,419) ----------- ----------- ----------- ----------- ---------- ---------- Change in net assets from fund share transactions (30,495) (548,372) 41,738 341,635 40,484 (41,303) ----------- ----------- ----------- ----------- ---------- ---------- Change in net assets (30,594) (548,342) 41,737 341,649 40,484 (41,302) NET ASSETS: Beginning of period 1,456,576 2,004,918 1,107,672 766,023 575,697 616,999 ----------- ----------- ----------- ----------- ---------- ---------- End of period $ 1,425,982 $ 1,456,576 $ 1,149,409 $ 1,107,672 $ 616,181 $ 575,697 =========== =========== =========== =========== ========== ========== Accumulated Net Investment Income/(Loss) $ 85 $ 85 $ 29 $ 29 $ 7 $ 7 =========== =========== =========== =========== ========== ========== FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET FUND FUND ------------------------- ------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2005 2004 2005 2004 (a) ----------- ----------- ----------- ----------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 4,496 $ 1,524 $ 27,542 $ 12,149 Net realized gains (losses) from investment transactions --^ 89 13 27 ----------- ----------- ----------- ----------- Change in net assets resulting from operations 4,496 1,613 27,555 12,176 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Institutional Shares (2,887) (1,109) (7,279) (5,196) Class A Shares (1,581) (370) NA NA Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA NA (1,723) (476) Preferred Shares NA NA (16,072) (5,778) Trust Shares NA NA (2,468) (699) ----------- ----------- ----------- ----------- Change in net assets from shareholder distributions (4,468) (1,479) (27,542) (12,149) ----------- ----------- ----------- ----------- Change in net assets from fund share transactions (44,643) (168,613) (497,345) 115,861 ----------- ----------- ----------- ----------- Change in net assets (44,615) (168,479) (497,332) 115,888 NET ASSETS: Beginning of period 284,018 452,497 1,760,793 1,644,905 ----------- ----------- ----------- ----------- End of period $ 239,403 $ 284,018 $ 1,263,461 $ 1,760,793 =========== =========== =========== =========== Accumulated Net Investment Income/(Loss) $ 28 $ -- $ -- $ -- =========== =========== =========== =========== MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET FUND FUND ------------------------- ------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2005 2004 2005 2004 (a) ----------- ----------- ----------- ----------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 2,648 $ 1,271 $ 2,835 $ 1,382 Net realized gains (losses) from investment transactions --^ -- -- 12 ----------- ----------- ----------- ----------- Change in net assets resulting from operations 2,648 1,271 2,835 1,394 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Institutional Shares (2,647) (1,271) (2,449) (1,226) Class A Shares (1) --^ (318) (142) Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA NA (4) (5) Preferred Shares NA NA (2) (1) Trust Shares NA NA (62) (10) ----------- ----------- ----------- ----------- Change in net assets from shareholder distributions (2,648) (1,271) (2,835) (1,384) ----------- ----------- ----------- ----------- Change in net assets from fund share transactions (32,729) (50,581) 66,456 (96,892) ----------- ----------- ----------- ----------- Change in net assets (32,729) (50,581) 66,456 (96,882) NET ASSETS: Beginning of period 197,243 247,824 155,636 252,518 ----------- ----------- ----------- ----------- End of period $ 164,514 $ 197,243 $ 222,092 $ 155,636 =========== =========== =========== =========== Accumulated Net Investment Income/(Loss) $ (10) $ (10) $ -- $ -- =========== =========== =========== =========== - ------------------ (a) Reflects operations for the period from October 20, 2003 (date of commencement of operations) to July 31, 2004 for Select Shares, Preferred Shares and Trust Shares. ^ Amount is less than five hundred dollars. 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 -------------------------- -------------------------- -------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2005 2004 2005 2004 (a) 2005 2004 (a) ----------- ----------- ----------- ----------- ----------- ----------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 2,228,288 2,769,748 4,778,153 3,760,386 1,880,786 1,244,240 Dividends reinvested 2,262 786 11,952 3,555 564 378 Shares redeemed (2,336,368) (3,271,523) (4,762,451) (3,480,370) (1,840,494) (1,637,764) ----------- ----------- ----------- ----------- ----------- ----------- Total Institutional Shares (105,818) (500,989) 27,654 283,571 40,856 (393,146) ----------- ----------- ----------- ----------- ----------- ----------- Class A Shares Shares issued 413,667 304,072 NA NA NA NA Dividends reinvested 6,049 1,542 NA NA NA NA Shares redeemed (342,721) (354,892) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Total Class A Shares 76,995 (49,278) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Class B Shares Shares issued 32,582 1,096 NA NA NA NA Dividends reinvested 9 4 NA NA NA NA Shares redeemed (32,901) (1,875) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Total Class B Shares (310) (775) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Class C Shares Shares issued 398 5,367 NA NA NA NA Dividends reinvested 14 2 NA NA NA NA Shares redeemed (1,780) (2,680) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Total Class C Shares (1,368) 2,689 NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Advisor Shares Shares issued 210 62 NA NA NA NA Dividends reinvested --^ --^ NA NA NA NA Shares redeemed (204) (88) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Total Advisor Shares 6 (26) NA NA NA NA ----------- ----------- ----------- ----------- ----------- ----------- Select Shares Shares issued NA NA 66,974 46,190 70,606 68,664 Dividends reinvested NA NA 261 41 9 --^ Shares redeemed NA NA (56,578) (32,964) (73,641) (63,462) ----------- ----------- ----------- ----------- ----------- ----------- Total Select Shares NA NA 10,657 13,267 (3,026) 5,202 ----------- ----------- ----------- ----------- ----------- ----------- Preferred Shares Shares issued NA NA 267,927 109,370 1,094,119 1,186,580 Dividends reinvested NA NA 538 66 1,965 590 Shares redeemed NA NA (272,494) (82,230) (1,143,902) (910,798) ----------- ----------- ----------- ----------- ----------- ----------- Total Preferred Shares NA NA (4,029) 27,206 (47,818) 276,372 ----------- ----------- ----------- ----------- ----------- ----------- Trust Shares Shares issued NA NA 119,393 90,278 288,065 861,501 Dividends reinvested NA NA 343 54 322 32 Shares redeemed NA NA (112,280) (72,741) (237,914) (791,264) ----------- ----------- ----------- ----------- ----------- ----------- Total Trust Shares NA NA 7,456 17,591 50,473 70,269 ----------- ----------- ----------- ----------- ----------- ----------- FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET FUND FUND --------------------- -------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2005 2004 2005 2004 (a) --------- --------- ----------- ----------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 302,031 380,768 1,181,212 1,990,678 Dividends reinvested 25 32 337 342 Shares redeemed (331,912) (482,127) (1,285,163) (3,236,738) --------- --------- ----------- ----------- Total Institutional Shares (29,856) (101,327) (103,614) (1,245,718) --------- --------- ----------- ----------- Class A Shares Shares issued 95,093 164,601 NA NA Dividends reinvested 1,290 332 NA NA Shares redeemed (111,171) (232,219) NA NA --------- --------- ----------- ----------- Total Class A Shares (14,788) (67,286) NA NA --------- --------- ----------- ----------- Class B Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- ----------- ----------- Total Class B Shares NA NA NA NA --------- --------- ----------- ----------- Class C Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- ----------- ----------- Total Class C Shares NA NA NA NA --------- --------- ----------- ----------- Advisor Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- ----------- ----------- Total Advisor Shares NA NA NA NA --------- --------- ----------- ----------- Select Shares Shares issued NA NA 721,963 566,393 Dividends reinvested NA NA --^ --^ Shares redeemed NA NA (732,025) (473,162) --------- --------- ----------- ----------- Total Select Shares NA NA (10,062) 93,231 --------- --------- ----------- ----------- Preferred Shares Shares issued NA NA 3,142,600 3,405,308 Dividends reinvested NA NA 2,434 632 Shares redeemed NA NA (3,481,318) (2,302,992) --------- --------- ----------- ----------- Total Preferred Shares NA NA (336,284) 1,102,948 --------- --------- ----------- ----------- Trust Shares Shares issued NA NA 498,703 1,327,544 Dividends reinvested NA NA 14 2 Shares redeemed NA NA (546,101) (1,162,147) --------- --------- ----------- ----------- Total Trust Shares NA NA (47,384) 165,399 --------- --------- ----------- ----------- MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET FUND FUND --------------------- -------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2005 2004 2005 2004 (a) --------- --------- ----------- ----------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 431,915 413,265 548,248 422,435 Dividends reinvested 940 509 179 92 Shares redeemed (465,676) (464,354) (496,898) (485,670) --------- --------- ----------- ----------- Total Institutional Shares (32,821) (50,580) 51,529 (63,143) --------- --------- ----------- ----------- Class A Shares Shares issued 118 209 128,126 120,106 Dividends reinvested --^ -- 281 141 Shares redeemed (26) (210) (120,484) (155,739) --------- --------- ----------- ----------- Total Class A Shares 92 (1) 7,923 (35,492) --------- --------- ----------- ----------- Class B Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- ----------- ----------- Total Class B Shares NA NA NA NA --------- --------- ----------- ----------- Class C Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- ----------- ----------- Total Class C Shares NA NA NA NA --------- --------- ----------- ----------- Advisor Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- ----------- ----------- Total Advisor Shares NA NA NA NA --------- --------- ----------- ----------- Select Shares Shares issued NA NA 960 15,021 Dividends reinvested NA NA 3 1 Shares redeemed NA NA (1,740) (14,159) --------- --------- ----------- ----------- Total Select Shares NA NA (777) 863 --------- --------- ----------- ----------- Preferred Shares Shares issued NA NA 6 637 Dividends reinvested NA NA 2 --^ Shares redeemed NA NA (609) --^ --------- --------- ----------- ----------- Total Preferred Shares NA NA (601) 637 --------- --------- ----------- ----------- Trust Shares Shares issued NA NA 31,202 17,815 Dividends reinvested NA NA 12 --^ Shares redeemed NA NA (22,833) (17,571) --------- --------- ----------- ----------- Total Trust Shares NA NA 8,381 244 --------- --------- ----------- ----------- - ------------------ (a) Reflects operations for the period from October 20, 2003 (date of commencement of operations) to July 31, 2004 for Select Shares, Preferred Shares and Trust Shares. * Share transactions are at a par value of $1.00 per share. ^ Amount is less than five hundred shares. 28-29 Spread FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 2005 - -------------------------------------------------------------------------------- (1) ORGANIZATION The Fifth Third Funds (the "Trust") are registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company established as a Massachusetts business trust. At July 31, 2005, the Trust consisted of thirty-five separate investment portfolios, one of which is not currently offered and is not included in these financial statements. 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 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. 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 their 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 JULY 31, 2005 - -------------------------------------------------------------------------------- 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 and is 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 received $1,801,141 in fees from Fifth Third during the year ended July 31, 2005, computed as a percentage (up to 0.0145%) 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 JULY 31, 2005 - -------------------------------------------------------------------------------- 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 July 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. $1,098 $ 168 For the period from October 20, 2003 through July 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. $8,334 $4,708 $12,397 $1,503 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 JULY 31, 2005 - -------------------------------------------------------------------------------- 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 Fund. 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 of 0.005% from BISYS Ohio computed as a percentage of the average daily net assets of each Fund. Fifth Third received $746,932 in fees for its services during the year ended July 31, 2005. Effective November 1, 2004, transfer agent fees were changed and are computed at 0.0195% of the average daily net assets of each Fund up to $700 million, 0.017% of the average daily net assets of each Fund between $700 million and $1 billion, 0.0155% of the average daily assets of each Fund 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 Fund up to $700 million, 0.017% of the average daily net assets of each Fund between $700 million and $1 billion, 0.0155% of the average daily net assets of each Fund between $1 billion and $2 billion and 0.0125% of more than $2 billion of the average daily net assets of each Fund. 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 Fund up to $500 million, 0.015% of the average daily net assets of each Fund between $500 million and $1 billion, and 0.01% of more than $1 billion of the average daily net assets of each Fund. 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. Pursuant to a separate agreement with Fifth Third, BISYS Ohio performs sub-accounting services on behalf of the Funds, for which it received $2,774,827 in fees from Fifth Third during the year ended July 31, 2005, computed as a percentage (up to 0.015%) of the average daily net assets of each Fund including annual fees for additional classes of shares per Fund plus reimbursement of out-of-pocket fees and other miscellaneous expenses. Custody fees are computed at 0.01% of the average daily net assets of each Fund up to $25 million, 0.0075% of the average daily net assets of each Fund between $25 million and $100 million, 0.005% of the average daily net assets of each Fund between $100 million and $200 million, and 0.0025% of more than $200 million of the average daily net assets of each Fund plus transaction charges. 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. There were no borrowings against the line of credit at the end of the year. 33 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2005 - -------------------------------------------------------------------------------- (5) FEDERAL TAX INFORMATION The tax character of distributions paid during the fiscal year ended July 31, 2005 was as follows (Amounts in thousands): ORDINARY TOTAL INCOME TAX EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID ------------- ------------- ------------- Prime Money Market Fund $ 24,392 $ -- $ 24,392 Institutional Money Market Fund 24,208 -- 24,208 Institutional Government Money Market Fund 11,180 -- 11,180 Government Money Market Fund 4,101 -- 4,101 U.S. Treasury Money Market Fund 25,567 -- 25,567 Michigan Municipal Money Market Fund --^ 2,483 2,483 Municipal Money Market Fund -- 2,613 2,613 The tax character of distributions paid during the fiscal year ended July 31, 2004 was as follows (Amounts in thousands): ORDINARY TOTAL INCOME TAX EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID ------------- ------------- ------------- Prime Money Market Fund $ 10,216 -- $ 10,216 Institutional Money Market Fund 8,584 -- 8,584 Institutional Government Money Market Fund 4,361 -- 4,361 Government Money Market Fund 1,487 -- 1,487 U.S. Treasury Money Market Fund 11,715 -- 11,715 Michigan Municipal Money Market Fund -- $ 1,267 1,267 Municipal Money Market Fund -- 1,410 1,410 As of July 31, 2005, the components of accumulated earnings/(deficit) on a tax basis were as follows (Amounts in thousands): ACCUMULATED TOTAL UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND ACCUMULATED TAX EXEMPT ORDINARY DISTRIBUTIONS OTHER EARNINGS/ INCOME INCOME PAYABLE LOSSES (DEFICIT) ------------- ------------- ------------- ----------- ----------- Prime Money Market Fund $ -- $ 3,370 $ (3,288) $ (99) $ (17) Institutional Money Market Fund -- 3,082 (3,053) (1) 28 Institutional Government Money Market Fund -- 1,577 (1,567) --^ 10 Government Money Market Fund -- 543 (515) (2) 26 U.S. Treasury Money Market Fund -- 3,340 (3,340) (145) (145) Michigan Municipal Money Market Fund 261 -- (266) -- (5) Municipal Money Market Fund 312 -- (312) (5) (5) As of July 31, 2005, the following Funds have net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by Treasury regulations (Amounts in thousands): EXPIRATION YEAR TOTAL -------------------------------------------------------- 2008 2009 2010 2011 --------- --------- --------- --------- Government Money Market Fund $ 2 -- -- -- $ 2 U.S. Treasury Money Market Fund 86 $ 59 -- -- 145 Municipal Money Market Fund -- 2 $ 3 $ --^ 5 Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. For the year ended July 31, 2005, the Funds deferred to August 1, 2005 post October capital losses (Amounts in thousands): CAPITAL LOSSES --------- Prime Money Market Fund $99 Institutional Money Market Fund 1 Institutional Government Money Market Fund --^ ^ Represents fewer than five hundred dollars. (6) CONCENTRATION OF CREDIT RISK The Michigan Municipal Money Market Fund invests a substantial portion of its assets in debt obligations issued by the State of Michigan, and their political subdivisions, agencies and public authorities. The Fund is more susceptible to factors adversely affecting issuers of Michigan municipal securities than a fund that is not concentrated in these issuers to the same extent. 34 This page intentionally left blank. FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) NET REALISED NET ASSET AND UNREALISED LESS VALUE, NET GAINS/ DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) FROM TO OF PERIOD INCOME INVESTMENTS SHAREHOLDERS - ---------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $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) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET FUND CLASS A SHARES 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------- 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) - ---------------------------------------------------------------------------------------------------------------------- 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) - ---------------------------------------------------------------------------------------------------------------------- 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) - ---------------------------------------------------------------------------------------------------------------------- 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) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------- 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 7/31/01 $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% Year ended 7/31/05 $1.00 1.91% $ 958,735 0.54% 1.86% 0.65% - -------------------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET FUND CLASS A SHARES 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% Year ended 7/31/05 $1.00 1.66% $ 464,391 0.79% 1.67% 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% Year ended 7/31/05 $1.00 0.95% $ 1,340 1.51% 1.14% 1.66% - -------------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 $1.00 0.95% $ 1,474 1.46% 0.85% 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% Year ended 7/31/05 $1.00 1.40% $ 42 1.04% 1.28% 1.15% - -------------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 $1.00 2.24% $ 1,077,260 0.21% 2.24% 0.65% - -------------------------------------------------------------------------------------------------------------------------------- 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%** Year ended 7/31/05 $1.00 2.15% $ 23,924 0.29% 2.23% 0.73% - -------------------------------------------------------------------------------------------------------------------------------- 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%** Year ended 7/31/05 $1.00 2.08% $ 23,178 0.36% 1.99% 0.80% - -------------------------------------------------------------------------------------------------------------------------------- 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%** Year ended 7/31/05 $1.00 1.98% $ 25,047 0.46% 2.01% 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 - ---------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES 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) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET FUND CLASS A SHARES 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND INSTITUTIONAL SHARES 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) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) - ---------------------------------------------------------------------------------------------------------------------------- FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) NET ASSET VALUE, END OF TOTAL PERIOD RETURN - ----------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 12/31/00 $1.00 6.03% 1/1/01 to 7/31/01(c) $1.00 2.71%* Year ended 7/31/02 $1.00 2.05% Year ended 7/31/03 $1.00 1.07% Year ended 7/31/04 $1.00 0.86% Year ended 7/31/05 $1.00 2.17% - ----------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.65%* Year ended 7/31/05 $1.00 2.09% - ----------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.59%* Year ended 7/31/05 $1.00 2.02% - ----------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.51%* Year ended 7/31/05 $1.00 1.92% - ----------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $1.00 5.23% Year ended 7/31/02 $1.00 1.79% Year ended 7/31/03 $1.00 0.92% Year ended 7/31/04 $1.00 0.47% Year ended 7/31/05 $1.00 1.75% - ----------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET FUND CLASS A SHARES Year ended 7/31/01 $1.00 5.02% Year ended 7/31/02 $1.00 1.58% Year ended 7/31/03 $1.00 0.71% Year ended 7/31/04 $1.00 0.27% Year ended 7/31/05 $1.00 1.55% - ----------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $1.00 5.30% Year ended 7/31/02 $1.00 1.92% Year ended 7/31/03 $1.00 1.02% Year ended 7/31/04 $1.00 0.80% Year ended 7/31/05 $1.00 2.08% - ----------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.59%* Year ended 7/31/05 $1.00 2.00% - ----------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.54%* Year ended 7/31/05 $1.00 1.93% - ----------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.46%* Year ended 7/31/05 $1.00 1.83% - ----------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PERIOD NET TO AVERAGE NET (000'S) ASSETS NET ASSETS ASSETS (a) - ----------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 12/31/00 $ 309,711 0.39% 5.92% 0.63% 1/1/01 to 7/31/01(c) $ 410,278 0.40%** 4.56%** 0.63%** Year ended 7/31/02 $ 425,092 0.41% 2.03% 0.64% Year ended 7/31/03 $ 616,999 0.40% 1.04% 0.65% Year ended 7/31/04 $ 223,852 0.31% 0.79% 0.66% Year ended 7/31/05 $ 264,707 0.21% 2.16% 0.66% - ----------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $ 5,202 0.30%** 0.82%** 0.75%** Year ended 7/31/05 $ 2,176 0.30% 1.83% 0.74% - ----------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $ 276,373 0.37%** 0.75%** 0.82%** Year ended 7/31/05 $ 228,555 0.36% 1.96% 0.81% - ----------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $ 70,270 0.47%** 0.66%** 0.92%** Year ended 7/31/05 $ 120,743 0.46% 1.96% 0.91% - ----------------------------------------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $ 238,816 0.55% 5.12% 0.60% Year ended 7/31/02 $ 279,059 0.65% 1.75% 0.69% Year ended 7/31/03 $ 275,107 0.61% 0.84% 0.66% Year ended 7/31/04 $ 173,865 0.62% 0.47% 0.67% Year ended 7/31/05 $ 144,028 0.58% 1.70% 0.67% - ----------------------------------------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET FUND CLASS A SHARES Year ended 7/31/01 $ 248,064 0.75% 4.92% 0.85% Year ended 7/31/02 $ 270,062 0.85% 1.57% 0.94% Year ended 7/31/03 $ 177,390 0.81% 0.66% 0.91% Year ended 7/31/04 $ 110,153 0.82% 0.27% 0.92% Year ended 7/31/05 $ 95,375 0.79% 1.53% 0.92% - ----------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $ 1,058,407 0.39% 5.08% 0.64% Year ended 7/31/02 $ 1,143,352 0.41% 1.88% 0.64% Year ended 7/31/03 $ 1,644,905 0.40% 0.98% 0.65% Year ended 7/31/04 $ 399,195 0.30% 0.74% 0.65% Year ended 7/31/05 $ 295,584 0.21% 2.01% 0.65% - ----------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $ 93,233 0.30%** 0.76%** 0.73%** Year ended 7/31/05 $ 83,171 0.29% 2.01% 0.73% - ----------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $ 1,102,963 0.37%** 0.69%** 0.80%** Year ended 7/31/05 $ 766,688 0.36% 1.85% 0.80% - ----------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $ 165,402 0.47%** 0.58%** 0.90%** Year ended 7/31/05 $ 118,018 0.46% 1.78% 0.90% - ----------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS 38-39 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 12/31/00 $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) Year ended 7/31/05 $1.00 0.01 --^ (0.01) - ---------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES 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 --^ -- --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) - ---------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES 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) Year ended 7/31/05 $1.00 0.02 -- (0.02) - ---------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND CLASS A SHARES 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 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) - ---------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) - ---------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) - ---------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) - ---------------------------------------------------------------------------------------------------------------------------- FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) NET ASSET VALUE, END OF TOTAL PERIOD RETURN - ----------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 12/31/00 $1.00 3.73% 1/1/01 to 7/31/01(c) $1.00 1.71%* Year ended 7/31/02 $1.00 1.41% Year ended 7/31/03 $1.00 0.88% Year ended 7/31/04 $1.00 0.59% Year ended 7/31/05 $1.00 1.45% - ----------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 12/31/00 $1.00 3.70% 1/1/01 to 7/31/01(c) $1.00 1.57%* Year ended 7/31/02 $1.00 1.25% Year ended 7/31/03 $1.00 0.78% Year ended 7/31/04 $1.00 0.49% Year ended 7/31/05 $1.00 1.30% - ----------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $1.00 3.44% Year ended 7/31/02 $1.00 1.45% Year ended 7/31/03 $1.00 0.91% Year ended 7/31/04 $1.00 0.68% Year ended 7/31/05 $1.00 1.55% - ----------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 7/31/01 $1.00 3.37% Year ended 7/31/02 $1.00 1.38% Year ended 7/31/03 $1.00 0.80% Year ended 7/31/04 $1.00 0.43% Year ended 7/31/05 $1.00 1.30% - ----------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.47%* Year ended 7/31/05 $1.00 1.47% - ----------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.42%* Year ended 7/31/05 $1.00 1.40% - ----------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.34%* Year ended 7/31/05 $1.00 1.30% - ----------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PERIOD NET TO AVERAGE NET (000 'S) ASSETS NET ASSETS ASSETS (a) - ----------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 12/31/00 $ 295,219 0.53% 3.67% 0.62% 1/1/01 to 7/31/01(c) $ 317,543 0.54%** 2.93%** 0.63%** Year ended 7/31/02 $ 292,618 0.54% 1.41% 0.65% Year ended 7/31/03 $ 247,805 0.54% 0.88% 0.67% Year ended 7/31/04 $ 197,225 0.54% 0.59% 0.67% Year ended 7/31/05 $ 164,404 0.54% 1.42% 0.67% - ----------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 12/31/00 $ 160 0.54% 3.44% 0.63% 1/1/01 to 7/31/01(c) $ 215 0.79%** 2.67%** 0.88%** Year ended 7/31/02 $ 177 0.70% 1.26% 0.91% Year ended 7/31/03 $ 19 0.64% 0.90% 0.92% Year ended 7/31/04 $ 18 0.64% 0.48% 0.91% Year ended 7/31/05 $ 110 0.69% 1.45% 0.93% - ----------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/01 $ 190,268 0.29% 3.33% 0.74% Year ended 7/31/02 $ 249,280 0.34% 1.43% 0.77% Year ended 7/31/03 $ 199,439 0.42% 0.92% 0.78% Year ended 7/31/04 $ 136,302 0.38% 0.67% 0.80% Year ended 7/31/05 $ 187,829 0.38% 1.55% 0.80% - ----------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 7/31/01 $ 40,981 0.36% 3.26% 0.99% Year ended 7/31/02 $ 42,004 0.41% 1.35% 1.02% Year ended 7/31/03 $ 53,079 0.52% 0.80% 1.03% Year ended 7/31/04 $ 17,590 0.63% 0.42% 1.05% Year ended 7/31/05 $ 25,516 0.63% 1.30% 1.06% - ----------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $ 863 0.46%** 0.62%** 0.91%** Year ended 7/31/05 $ 86 0.46% 0.99% 0.89% - ----------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $ 637 0.53%** 0.55%** 0.98%** Year ended 7/31/05 $ 36 0.53% 0.97% 0.97% - ----------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $ 244 0.63%** 0.44%** 1.06%** Year ended 7/31/05 $ 8,625 0.63% 1.70% 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. ^ Amount is less than $0.005. * Not annualized. ** Annualized. SEE NOTES TO FINANCIAL STATEMENTS 40-41 Spread REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- To the Shareholders and Trustees of Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fifth Third Prime Money Market Fund, Fifth Third Institutional Money Market Fund, Fifth Third Institutional Government Money Market Fund, Fifth Third Government Money Market Fund, Fifth Third U.S. Treasury Money Market Fund, Fifth Third Michigan Municipal Money Market Fund and Fifth Third Municipal Money Market Fund (separate portfolios constituting Fifth Third Funds, hereafter referred to as the "Funds") at July 31, 2005, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods in the four years then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of the Fifth Third Prime Money Market Fund, Fifth Third Government Money Market Fund, Fifth Third U.S. Treasury Money Market Fund and Fifth Third Municipal Money Market Fund for the period ended July 31, 2001 were audited by other independent auditors who have ceased operations. Those independent auditors expressed an unqualified opinion on those statements in their report dated September 7, 2001. The financial highlights of the Fifth Third Institutional Money Market Fund, Fifth Third Institutional Government Money Market Fund and Fifth Third Michigan Municipal Money Market Fund for the period ended July 31, 2001 and prior were audited by other independent auditors who have ceased operations. Those independent auditors expressed an unqualified opinion on those statements in their report dated September 4, 2001. PricewaterhouseCoopers LLP Columbus, Ohio September 28, 2005 42 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED): - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT ^ The Trustees and Officers of the Funds, their date of birth, the position they hold with the Funds, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the fund complex that the Trustee oversees and any other directorships held by the Trustee are listed in the two tables immediately following. The business address of the persons listed below is 3435 Stelzer Road, Columbus, Ohio 43219-3035 INDEPENDENT TRUSTEES ------------------- NUMBER OF PORTFOLIOS POSITION(S) TERM OF IN FUND HELD OFFICE AND COMPLEX OTHER NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE - ------------------------ -------------- ------------- ------------------------------- ----------- ------------------------ David J. Durham Trustee Indefinite, President and Chief 35 None Date of Birth: 5/10/1945 June 2001- Executive Officer of Clipper Present Products, Inc., a wholesale distributor, 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, Vice President and Chief 35 Trustee for Date of Birth: 9/11/1949 March Communications Officer, Cinergy Hanover College. 2001-Present Corp., September 2004-Present. National Underground President, Cinergy Foundation, Freedom Center, November 2001-Present. The Cincinnati Zoo, President, Cinergy Corp., The Ohio Arts Council, Cincinnati Gas & Electric Co., The Cincinnati The Union Light Heat & Power Parks Foundation, Co., July 2000-October 2001. and Playhouse Vice President, Corporate in the Park. Communications, August 1996- June 2000. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 35 Printing Date of Birth: 12/5/1944 October Present. Business Management Industries of 2001- Present Consultant,April 2000-February America:Web Offset 2002. President, Metroweb Assoc., Director; Master Corp. (publications printing) Printers of America, 1997-2000. Director. David J. Gruber Trustee Indefinite, Resources Global Professionals, 35 None Date of Birth: 8/19/1963 December Project Professional, December 2003-Present 2004-Present. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO, April 2003- December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director,April 1996-March 2003. INTERESTED TRUSTEE ------------------ Edward Burke Carey* Chairman-Board Indefinite, Carey Realty Investments, Inc. 35 The Foundation Date of Birth: 7/2/1945 of Trustees January (real estate development and of the Catholic 1989-Present consulting), President, 1990- Diocese of Present. Columbus-Trustee, Canisius College-Trustee. ^ Additional disclosure can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. * Mr. Carey is treated by the Funds as an "interested person" (as defined in Section 2(a)(19) of the 1940 Act) of the Funds and the Investment Advisor. Mr. Carey is an "interested person" because of his past business transactions with Fifth Third Bank and its affiliates. 43 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED: - -------------------------------------------------------------------------------- OFFICERS -------- TERM OF POSITION(S) OFFICE AND HELD LENGTH OF NAME WITH THE TIME PRINCIPAL OCCUPATION(S) AND DATE OF BIRTH FUNDS SERVED DURING THE PAST 5 YEARS - ------------------------- ---------------------------- ------------ -------------------------------------- Bryan C. Haft President Indefinite, Employee of BISYS Fund Services Date of Birth: 1/23/65 June Limited Partnership since 1992. 2005-Present Russell D. Ungerman Vice President Indefinite, Assistant Vice President of Fifth Date of Birth: 2/9/1971 September Third Bank since 1998. 2002-Present Rodney L. Ruehle Anti-Money Laundering Indefinite, Employee of BISYS Fund Services Date of Birth: 4/26/1968 and Chief Compliance Officer September Limited Partnership since August 1995. 2001-Present Alaina Metz Assistant Secretary Indefinite, Employee of BISYS Fund Services Date of Birth: 4/4/1967 September Limited Partnership since June 1995. 2004-Present Steven D. Pierce Treasurer Indefinite, Employee of BISYS Fund services Date of Birth: 11/12/1965 March Limited Partnership since April 1999. 2005-Present Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund Services Date of Birth: 2/13/1962 and Assistant Treasurer September Limited Partnership since May 1995. 2001-Present 44 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; and (2) ongoing costs, including management fees; distribution and/or service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fifth Third Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2005 through July 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 PERIOD* PERIOD 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ---------- ---------- ---------------- ---------------- Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,012.00 $ 2.69 0.54% Class A Shares 1,000.00 1,010.70 3.94 0.79% Class B Shares 1,000.00 1,007.00 7.66 1.54% Class C Shares 1,000.00 1,007.00 7.66 1.54% Advisor Shares 1,000.00 1,009.50 5.18 1.04% Institutional Money Market Fund Institutional Shares 1,000.00 1,013.60 1.05 0.21% Select Shares 1,000.00 1,013.20 1.45 0.29% Preferred Shares 1,000.00 1,012.90 1.80 0.36% Trust Shares 1,000.00 1,012.40 2.30 0.46% Institutional Government Money Market Fund Institutional Shares 1,000.00 1,013.30 1.05 0.21% Select Shares 1,000.00 1,012.90 1.45 0.29% Preferred Shares 1,000.00 1,012.60 1.80 0.36% Trust Shares 1,000.00 1,012.10 2.29 0.46% Government Money Market Fund Institutional Shares 1,000.00 1,011.20 2.99 0.60% Class A Shares 1,000.00 1,010.20 3.99 0.80% U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,013.00 1.05 0.21% Select Shares 1,000.00 1,012.60 1.45 0.29% Preferred Shares 1,000.00 1,012.20 1.80 0.36% Trust Shares 1,000.00 1,012.40 2.30 0.46% Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,009.00 2.69 0.54% Class A Shares 1,000.00 1,008.20 3.49 0.70% Municipal Money Market Fund Institutional Shares 1,000.00 1,009.50 1.89 0.38% Class A Shares 1,000.00 1,008.30 3.14 0.63% Select Shares 1,000.00 1,009.10 2.29 0.46% Preferred Shares 1,000.00 1,008.80 2.64 0.53% Trust Shares 1,000.00 1,008.30 3.14 0.63% * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 45 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED: - -------------------------------------------------------------------------------- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may however use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ---------- ---------- ---------------- ---------------- Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,022.12 $ 2.71 0.54% Class A Shares 1,000.00 1,020.88 3.96 0.79% Class B Shares 1,000.00 1,017.16 7.70 1.54% Class C Shares 1,000.00 1,017.16 7.70 1.54% Advisor Shares 1,000.00 1,019.64 5.21 1.04% Institutional Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Institutional Government Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Government Money Market Fund Institutional Shares 1,000.00 1,021.82 3.01 0.60% Class A Shares 1,000.00 1,020.83 4.01 0.80% U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,022.12 2.71 0.54% Class A Shares 1,000.00 1,021.32 3.51 0.70% Municipal Money Market Fund Institutional Shares 1,000.00 1,022.91 1.91 0.38% Class A Shares 1,000.00 1,021.67 3.16 0.63% Select Shares 1,000.00 1,022.51 2.31 0.46% Preferred Shares 1,000.00 1,022.17 2.66 0.53% Trust Shares 1,000.00 1,021.67 3.16 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. 46 This page intentionally left blank. 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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 - ------------------------------------------------------------------------------------------ Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP 100 East Broad Street Suite 2100 Columbus, Ohio 43215 - ------------------------------------------------------------------------------------------ [LOGO] FIFTH THIRD FUNDS 9/05 AR-MMF-05 [LOGO] Fifth Third Funds STOCK AND BOND MUTUAL FUNDS Annual Report to Shareholders ---------------- July 31, 2005 [GRAPHIC OMITTED] NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the polices and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities and information regarding how the Funds voted relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-282-5706 or on the Securities and Exchange Commission's website at http://www.sec.gov. Schedules of Portfolio Investments for periods ending April 30 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 ..................................................... 4 Mid Cap Growth Fund ....................................................... 6 Quality Growth Fund ....................................................... 8 Large Cap Core Fund ....................................................... 10 Equity Index Fund ......................................................... 12 Balanced Fund ............................................................. 14 Micro Cap Value Fund ...................................................... 16 Small Cap Value Fund ...................................................... 18 Multi Cap Value Fund ...................................................... 20 Disciplined Large Cap Value Fund .......................................... 22 Fifth Third LifeModel Aggressive Fund (SM)................................. 24 Fifth Third LifeModel Moderately Aggressive Fund (SM)...................... 26 Fifth Third LifeModel Moderate Fund (SM)................................... 28 Fifth Third LifeModel Moderately Conservative Fund (SM).................... 30 Fifth Third LifeModel Conservative Fund (SM)............................... 32 Strategic Income Fund ..................................................... 34 Select Stock Fund ......................................................... 36 Technology Fund ........................................................... 38 International Equity Fund ................................................. 40 Bond Fund ................................................................. 42 Intermediate Bond Fund .................................................... 44 Short Term Bond Fund ...................................................... 46 U.S. Government Bond Fund ................................................. 48 Municipal Bond Fund ....................................................... 50 Intermediate Municipal Bond Fund .......................................... 52 Ohio Municipal Bond Fund .................................................. 54 Michigan Municipal Bond Fund .............................................. 56 Schedules of Portfolio Investments ........................................ 59 Notes to Schedules of Portfolio Investments ............................... 110 Statements of Assets and Liabilities ...................................... 118 Statements of Operations .................................................. 123 Statements of Changes in Net Assets ....................................... 128 Notes to Financial Statements ............................................. 146 Financial Highlights ...................................................... 158 Notes to Financial Highlights ............................................. 186 Report of Independent Registered Public Accounting Firm ................... 187 Supplemental Information .................................................. 188 [LOGO] Stock investors realized above average returns during the 12-month period ended July 31, 2005, while bond investors endured below average returns. Major stock index returns were as follows: 1. The S&P 500(R) Index (1) of large cap stocks returned 14.04%. 2. The S&P 400(R) Index (1) of mid cap stocks returned 25.89%. 3. The Russell 2000(R) Index (1) of small cap stocks returned 24.79%. 4. The MSCI EAFE(R) Index (1) of international stocks returned 21.56%. Major bond index returns were as follows: 1. The Lehman Brothers Aggregate Bond Index (1) returned 4.79%. 2. The Lehman Brothers Intermediate Government/Credit Index (1) returned 3.06%. 3. The Lehman Brothers 1-3 Year Government Bond Index (1) returned 1.36%. 4. The Lehman Brothers Municipal Bond Index (1) returned 6.35%. Continued double-digit growth in corporate profits drove strong equity returns, along with the continuation of relatively low bond yields. Weaker performance in the fixed income market resulted from an active Federal Reserve Board (the "Fed"), which raised the overnight fed funds rate from 1.25% to 3.25% during the fiscal year. In addition, the rate of inflation drifted upwards amid above average economic growth and a rise in energy prices. Several patterns that investors have experienced for the past few years repeated themselves during the period, including the outperformance of mid cap and small cap stocks, relative to large cap names, and international large cap equities outpacing domestic large cap stocks. During the fiscal year the managers of the Fifth Third Funds focused on quality, growth potential and valuation characteristics within their individual portfolios. The fiscal year was highlighted by four events that, arguably, had the largest effect on the financial markets: 1. The outcome, and finality, of the November 2004 elections. 2. An active Federal Reserve. 3. The flattening of the yield curve. 4. A dramatic rise in the price of energy. The outcome of the November elections, which were quickly resolved, helped stocks move sharply higher from the final week of October through the end of 2004 (propelling the S&P 500(R) Index 10% during that time). In 2005, stocks rallied into March, but fell in early April as economic and corporate profit growth concerns followed sharp increases in energy prices. In late April, stocks began another comeback on stronger than expected corporate earnings and a downward move in long-term bond yields, and the period finished with an unusually strong July. Within the bond market, the Fed's commitment to raising rates at the short end of the yield curve combined with sustained buying pressure on the long end to create a "conundrum," as described by Federal Reserve Board Chairman Alan Greenspan. The yield on the two-year Treasury bond started the fiscal year at 2.68%, but ended the period on July 31, 2005 at 4.01%. In contrast, the yield on the 10-year Treasury bond started the fiscal year at 4.47% and ended the period on July 31, 2005 at 4.28%. For the first time in history, the long end of the yield curve did not respond to a Fed tightening cycle by moving higher as well. This flattening of the curve frustrated the Fed, which believed higher long-term yields would cool the housing market and the overall economy, but the bond market did not cooperate. Energy prices proved unsettling for investors and frustrating for consumers. To us, what differentiates this rise in the price of oil from past increases is that this one is demand driven, whereas past spikes resulted from shocks to the supply side of the equation. Such conditions increase the potential staying power of higher energy prices, as long as demand continues to expand. 1 Complicating matters shortly after the period's end was the damage caused by Hurricane Katrina, which raised supply concerns and led to a price spike that added elevated risk to the country's economic expansion. As of this writing, however, we are encouraged by the progress being made in restoring energy assets along the Gulf Coast. We also continue to be encouraged by the underlying strength of the U.S. economy, even with the drag of higher energy prices and the direct and indirect challenges stemming from Hurricane Katrina. Similarly, we are heartened by the resilience of the American spirit to overcome adversity. As we move into the new fiscal year, we are focusing on the Fed, inflation, energy and the U.S. consumer. While economic and corporate growth may slow early on, we remain optimistic that the Fed will not risk a recession in the U.S. Thank you for your continued confidence in the Fifth Third Funds. /s/ Keith Wirtz Keith Wirtz, CFA Chief Investment Officer /s/ John Augustine John Augustine, CFA Chief Investment Strategist The foregoing information and opinions are for general information only. Fifth Third Asset Management, Inc. does not guarantee the accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering of individual or personalized investment advice. (1) Terms and Definitions - -------------------------------------------------------------------------------- The Standard & Poor's 500 Stock(R) Index ("S&P 500(R)") is an index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The Standard & Poor's MidCap 400(R) Index ("S&P 400(R)") is an index comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation. The Russell 2000(R) Index which measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, which represents approximately 8% of the total market capitalization of the Russell 3000(R) Index. The companies which comprise this index have high price-to-book ratios and higher forecasted growth values. The Morgan Stanley Capital International(R) Europe Australasia and Far East Index ("MSCI(R) EAFE") is a market capitalization-weighted equity index comprising 20 of the 48 countries in the MSCI universe and representing the developed world outside of North America. Each MSCI country index is created separately, then aggregated, without change, into regional MSCI indices. EAFE performance data is calculated in U.S. dollars and in local currency. The Lehman Brothers Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The Lehman Brothers Intermediate Government/Credit Index is composed of investment grade corporate debt issues as well as debt issues of U.S. Government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Lehman Brothers 1-3 Year Government Bond Index is the 1-3 year component of the U.S. Government index. It consists of securities in the U.S. Government Index with a maturity from one up to but not including three years. The Lehman Brothers Municipal Bond Index is a broad market performance benchmark for the tax-exempt bond market, the bonds included in this index must have a minimum credit rating of at least Baa. They must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $50 million. The index includes both zero coupon bonds and bonds subject to the Alternative Minimum tax. The above indices do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities. 2 This page intentionally left blank. MANAGEMENT DISCUSSION OF FUND PERFORMANCE Small Cap Growth Fund For the 12-month period ended July 31, 2005, the Fifth Third Small Cap Growth Fund (Institutional Shares) produced a total return of 20.81%, lagging its benchmark, the Russell 2000(R) Growth Index, which gained 22.58%. After pre-election uncertainty and post-election relief contributed to market volatility during the first part of the period, rising oil prices and climbing short-term interest rates dampened enthusiasm across the equity markets during the spring. Yet the resilient U.S. economy inspired investors through the final months of the period. As a group, small stocks outperformed large cap holdings, yet trailed mid cap stocks. Sharpening the volatility among growth stocks was the continued dominance of value holdings. Hindering the Fund's performance was its position in the healthcare sector. Select holdings in the biotechnology, medical equipment and supplies areas sagged significantly, exacerbating lackluster returns from this group. + Similarly, communications equipment stocks pulled down the Fund's information technology stake. As customer preferences shifted from smaller to bigger vendors and merger and acquisition activity swept across the service provider group, which generally put spending plans on hold, smaller stocks struggled to meet expectations. + Generating positive returns for the Fund were holdings within the consumer discretionary and energy sectors. Apparel stores and other specialty retailers propelled the discretionary group as consumer spending levels remained robust. Homebuilders added a lift, strengthened by the continuing rally in the residential real estate market. + Elsewhere, an overweight position, relative to the benchmark, carried the Fund's energy stake to a sizable gain as oil-related stocks thrived. + Moving forward, the Fund will attempt to be more streamlined-by holding approximately 65-75 stocks instead of the previous 125-140. As part of a broader philosophical change, positions in companies with risky profiles and slower growth stocks were eliminated, leaving only companies operating with solid fundamentals that we believe display good prospects for sustainable growth. + Investment Risk Considerations - -------------------------------------------------------------------------------- Small capitalization funds typically carry additional risk since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 20.81% 1.81% 8.02% $21,638 - -------------------------------------------------------------------------------- Class A Shares* 14.43% 0.51% 7.21% $20,058 - -------------------------------------------------------------------------------- Class B Shares** 14.56% 0.48% 6.93% $19,546 - -------------------------------------------------------------------------------- Class C Shares** 19.57% 0.79% 6.94% $19,569 - -------------------------------------------------------------------------------- Advisor Shares 20.13% 1.28% 7.47% $20,555 - -------------------------------------------------------------------------------- Russell 2000(R) Growth Index (1) 22.58% -1.46% 5.08% $16,414 - -------------------------------------------------------------------------------- Lipper Small-Cap Growth Funds Average (1) 22.12% -1.12% 8.57% $25,021 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + General Cable Corp. .......................... 1.80% American Medical Systems Holdings, ........... 1.74% WCI Communities, Inc. ........................ 1.64% Labor Ready, Inc. ............................ 1.62% A.S.V., Inc. ................................. 1.51% Parametric Technology Corp. .................. 1.44% aQuantive, Inc. .............................. 1.42% Hibbet Sporting Goods, Inc. .................. 1.42% RC2 Corp. .................................... 1.39% Children's Place Retail Stores, Inc. ......... 1.39% + Portfolio composition is subject to change. 4 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Small Cap Growth Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Small Cap Growth Fund Russell 2000(R) Lipper Small-Cap (Institutional Shares) Growth Index Growth Funds Average 7/31/1995 10000 10000 10000 10500 10332 10453 Dec-95 10536 10485 10706 11145 11087 11490 11881 11735 12503 11948 11635 12717 Dec-96 12586 11665 12651 12343 10442 11374 14566 12275 13422 16792 14352 15664 Dec-97 16103 13176 14663 17610 14741 16472 16797 13894 15899 13235 10788 12424 Dec-98 15112 13338 15429 13874 13114 15164 16618 15047 17384 16100 14307 17602 Dec-99 19340 19085 25170 20924 20857 29138 20654 19319 27212 21024 18552 27371 Dec-00 19267 14804 22742 16430 12554 18547 18830 14810 21766 15312 10651 16459 1-Dec 18475 13438 20407 18874 13175 20019 16701 11107 17155 13500 8717 13880 2-Dec 13857 9372 14641 13405 9008 14115 15641 11183 17257 17205 12354 18912 3-Dec 19462 13921 21334 19844 14698 22212 19717 14711 22141 18467 13827 20796 4-Dec 20638 15912 23784 19902 14826 22626 20416 15342 23610 7/31/2005 21638 16414 25021 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 2000(R) Growth Index and the Lipper Small-Cap Growth Funds Average. The Russell 2000(R) Growth Index tracks the performance of common stocks that measure the performance of the securities found in the Russell 2000(R) universe with higher forecasted growth values. The Lipper Small-Cap Growth Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Growth Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 5 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Mid Cap Growth Fund For the 12-month period ended July 31, 2005, the Fifth Third Mid Cap Growth Fund (Institutional Shares) produced a total return of 23.69%, trailing its benchmark, the Russell MidCap(R) Growth Index, which gained 25.65%. After election-related developments fueled volatility during the first half of the period, stocks behaved similarly in the second half, dropping through March and April and rising through the final three months of the fiscal period. Worries over increasing interest rates and surging oil prices contributed to the spring malaise, which dissipated as economic growth continued along a solid, steady path and inflation pressures remained muted. Mid cap stocks collectively outpaced smaller and larger stocks during the period, although value holdings extended their lengthy dominance over growth stocks. Accordingly, classic value sectors such as energy, utilities and telecommunications services led the broader indexes. Within the Fund, ineffective stock picking contributed to underperformance within the healthcare and information technology sectors. While the Fund's medical equipment and device companies provided solid healthcare gains, modest exposure to the service providers area proved detrimental. + In the technology stock arena, communications equipment stocks struggled to meet expectations as customer preferences shifted from smaller to bigger vendors and merger and acquisition activity swept across the service provider group, which generally put spending plans on hold. + Over the course of the period, the Fund reduced its technology stock exposure from an overweight stake, relative to the benchmark, to an underweight position. Most of the proceeds were directed into the energy sector, which ranked among the Fund's leading performers due to strong performances from exploration and production companies and service outfits. Service firms attracted the bulk of the new investments, specifically offshore drillers. Consumer discretionary investments also performed well as the enduring strength of the U.S. consumer propped up specialty retailers in the apparel, auto parts and craft goods industries. Furthermore, historically low mortgage rates and solid job growth set the stage for solid returns from homebuilders. Investment Risk Considerations - -------------------------------------------------------------------------------- Mid capitalization funds typically carry additional risk since mid-size companies generally have a higher risk of failure. Historically, mid-size companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 23.69% -0.27% 8.14% $21,864 - -------------------------------------------------------------------------------- Class A Shares* 17.18% -1.55% 7.37% $20,362 - -------------------------------------------------------------------------------- Class B Shares** 17.46% -1.38% 7.00% $19,669 - -------------------------------------------------------------------------------- Class C Shares** 22.36% -1.30% 7.15% $19,950 - -------------------------------------------------------------------------------- Advisor Shares 23.00% -0.76% 7.66% $20,923 - -------------------------------------------------------------------------------- Russell MidCap(R) Growth Index (1) 25.65% -2.89% 9.39% $24,528 - -------------------------------------------------------------------------------- Lipper Mid-Cap Growth Funds Average (1) 22.58% -3.18% 8.06% $22,503 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + D. R. Horton, Inc. .................................... 2.32% Advance Auto Parts, Inc. .............................. 2.02% Caremark Rx, Inc. ..................................... 1.91% Chico's FAS, Inc. ..................................... 1.87% American Medical Systems Holdings, .................... 1.86% Ultra Petroleum Corp. ................................. 1.83% Gilead Sciences, Inc. ................................. 1.82% Nextel Partners Inc., Class A ......................... 1.79% Nabors Industries Ltd. ................................ 1.79% Polo Ralph Lauren ..................................... 1.76% + Portfolio composition is subject to change. 6 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Mid Cap Growth Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Mid Cap Growth Fund Russell MidCap(R) Lipper Mid-Cap Growth (Institutional Shares) Growth Index Funds Average 7/31/1995 10000 10000 10000 10539 10335 10415 Dec-95 10323 10529 10674 10873 11208 11299 10890 11627 12008 11503 12022 12284 Dec-96 12139 12369 12414 11692 11919 11587 13578 13673 13388 15895 15586 15312 Dec-97 16101 15158 14817 17414 16967 16648 16169 16956 16623 14009 14126 13574 Dec-98 16662 17866 16972 15903 18476 17135 17677 20401 18991 15839 19379 18424 Dec-99 19505 27029 25484 22079 32739 29815 21286 30314 28024 23045 31079 29686 Dec-00 20856 23854 24186 17327 17870 18800 20565 20762 21126 15900 14990 15935 1-Dec 19545 19047 19106 19095 18710 18762 15576 15294 16081 12766 12667 13341 2-Dec 13598 13827 13977 13244 13825 13691 15767 16418 16049 16599 17593 16937 3-Dec 18700 19733 18858 19218 20687 19660 19109 20905 19776 17990 19999 18775 4-Dec 20254 22787 21308 19559 22407 20642 20855 23176 21316 7/31/2005 21864 24528 22503 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell MidCap(R) Growth Index and the Lipper Mid-Cap Growth Funds Average. The Russell MidCap(R) Growth Index measures the performance of those Russell mid cap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000(R) Growth Index. The Lipper Mid-Cap Growth Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell MidCap(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Mid-Cap Growth Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 7 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Quality Growth Fund For the 12-month period ended July 31, 2005, the Fifth Third Quality Growth Fund (Institutional Shares) produced a total return of 12.13%, underperforming its benchmark, the Russell 1000(R) Growth Index, which gained 13.04%. Investors gradually warmed to higher quality growth stocks during the period as confidence grew about the economy's solid footing and inflation's limited influence. Following a marketwide lull in March and April, the Fund benefited from the more optimistic sentiment through the final three months of the fiscal period and recovered accordingly, albeit not as much as its benchmark. Weighing on performance was a complete lack of exposure to the materials, telecommunications and utilities sectors-three groups that don't comprise a large portion of the Index but performed well. As all three industries continue to lack significant growth opportunities, the Fund remained on the sideline. + The defensive mindset that fueled interest in those three sectors also steered investors into the consumer staples space, which performed relatively well through the first nine months of the period before faltering somewhat. Because we believed the sector was rife with deteriorating fundamentals and high valuations, the Fund held an underweight position, relative to the benchmark, which diminished returns. + Contributing positively to performance were holdings in the energy sector, which performed well. Consisting of integrated oil companies and service outfits, the Fund's stake was modestly overweight, relative to the benchmark. + Gains from specialty growth retailers boosted returns from the Fund's consumer discretionary position, as did an aversion to more economically sensitive areas of the sector, such as media and entertainment companies, which underperformed. By the period's close, the Fund was more diversified across sectors in an effort to soften volatility. Related moves included a reduction in exposure to the consumer discretionary, industrials and information technology sectors. Stakes were padded in the financial services group-specifically among investment banks and insurance providers-and healthcare-specifically in the managed care, medical product and biotechnology spaces. + Investment Risk Considerations - -------------------------------------------------------------------------------- Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 12.13% -6.03% 8.04% $21,675 - -------------------------------------------------------------------------------- Class A Shares* 6.22% -7.23% 7.30% $20,238 - -------------------------------------------------------------------------------- Class B Shares** 5.95% -7.30% 6.92% $19,519 - -------------------------------------------------------------------------------- Class C Shares** 10.95% -6.97% 7.15% $19,946 - -------------------------------------------------------------------------------- Advisor Shares 11.57% -6.50% 7.59% $20,792 - -------------------------------------------------------------------------------- Russell 1000(R) Growth Index (1) 13.04% -8.72% 7.48% $20,564 - -------------------------------------------------------------------------------- S&P 500(R) Index (1) 14.04% -1.35% 9.98% $25,888 - -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average (1) 12.60% -2.63% 8.20% $22,454 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Intel Corp. ........................................... 3.51% Texas Instruments, Inc. ............................... 3.01% EMC Corp. ............................................. 2.79% CVS Corp. ............................................. 2.69% Henry Schein, Inc. .................................... 2.57% Office Depot, Inc. .................................... 2.56% Linear Technology Corp. ............................... 2.56% Broadcom Corp., Class A ............................... 2.52% Motorola, Inc. ........................................ 2.51% Goldman Sachs Group, Inc. ............................. 2.49% + Portfolio composition is subject to change. 8 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Quality Growth Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Quality Growth Fund Lipper Large- (Institutional Russell 1000 Cap Core Funds Shares) Growth Index S&P 500 Index Average 7/31/1995 10000 10000 10000 10000 10269 10472 10448 10382 Dec-95 10790 10949 11076 10856 11242 11537 11671 11456 11860 12271 12194 11884 12435 12713 12571 12266 Dec-96 13344 13481 13618 13137 13384 13554 13984 13285 16077 16117 16423 15419 17262 17328 17653 16712 Dec-97 17708 17591 18159 16967 19814 20257 20691 19093 19814 21176 21378 19513 17976 19253 19256 17281 Dec-98 23048 24400 23353 20925 23843 25951 24516 21718 25315 26950 26241 23224 24574 25963 24606 21708 Dec-99 28548 32491 28265 24987 30611 34806 28912 25971 30070 33867 28144 25347 29517 32045 27871 25402 Dec-00 27457 25205 25692 23646 22830 19937 22648 20809 24125 21616 23972 21914 19856 17420 20455 18616 1-Dec 23681 20058 22641 20666 23059 19539 22703 20626 18508 15890 19663 17947 15083 13499 16268 15064 2-Dec 15982 14465 17639 16082 15440 14310 17083 15528 17887 16358 19712 17715 18814 16998 20233 18137 3-Dec 20997 18768 22696 20183 21063 18915 23080 20430 20785 19282 23477 20646 19158 18274 23038 20113 4-Dec 20811 19950 25163 21868 19778 19135 24623 21423 20534 19606 24960 21678 7/31/2005 21675 20564 25888 22454 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Growth Index, the S&P 500(R) Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Growth Index measures the performance of 1,000 securities found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Growth Index and the S&P 500(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 9 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Large Cap Core Fund For the 12-month period ended July 31, 2005, the Fifth Third Large Cap Core Fund (Institutional Shares) produced a total return of 14.92%, outperforming its benchmark, the S&P 500(R) Index, which advanced 14.04%. Constructed around an investment strategy that relies on quantitative analysis, or a series of financial calculations, the Fund effectively matched the broader market's leading trends during the period. 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, the Fund's research process highlights stocks that feature the best prospects for positive returns while minimizing risk relative to the benchmark. Holdings are rebalanced monthly. Most notably, a bias toward stocks with lower price-to-earnings (1) (P/E) ratios paid off as investor's lengthy attraction to cheaper valuations-generally associated with value holdings-continued throughout much of the year. Sentiment seemed to shift, however, in the spring as the range in P/E ratios narrowed and increased risk tolerance surfaced. As growth factors such as increasing earnings and accelerating sales started to gain traction, the Fund's orientation gradually adjusted as well, although it ended the period still modestly favoring lower price-to-earning stocks. Investment themes that proved ineffective during the period included a preference for companies with high earnings quality and those demonstrating disciplined use of capital, both of which faltered amid a flight to stocks with less reliable earnings and companies that are less disciplined with their capital. As our bias toward fundamentally sound companies is rooted in historical research, such short-term results offer insight into performance but tend not to lead to changes in the Fund's makeup. + From a sector standpoint, the Fund, which held about 140 stocks, benefited from its stake in the energy group, which enjoyed strong growth as oil prices surged. Conversely, the Fund's modest utilities sector position lagged. + Investment Risk Considerations - -------------------------------------------------------------------------------- Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 14.92% -2.39% 7.96% $ 21,517 - -------------------------------------------------------------------------------- Class A Shares* 8.82% -3.63% 7.14% $ 19,937 - -------------------------------------------------------------------------------- Class B Shares** 8.67% -3.74% 6.87% $ 19,433 - -------------------------------------------------------------------------------- Class C Shares** 13.73% -3.38% 6.87% $ 19,440 - -------------------------------------------------------------------------------- Russell 1000(R) Index (1) 16.20% -0.80% 10.17% $ 26,337 - -------------------------------------------------------------------------------- S&P 500(R) Index (1) 14.04% -1.35% 9.98% $ 25,888 - -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average (1) 12.60% -2.63% 8.20% $ 22,454 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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 Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Exxon Mobil Corp. .......................... 3.69% Microsoft Corp. ............................ 2.76% Citigroup, Inc. ............................ 2.45% General Electric Corp. ..................... 2.30% Pfizer, Inc. ............................... 2.23% Johnson & Johnson. ......................... 2.18% Intel Corp. ................................ 2.04% Bank of America Corp. ...................... 2.04% Wells Fargo & Co. .......................... 1.50% Coca-Cola Co. .............................. 1.48% + Portfolio composition is subject to change. (1) Price/Earnings (P/E) Ratio is the price of a stock divided by its historical earnings per share. 10 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Large Cap Core Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Large Cap Lipper Large- Core Fund Russell Cap Core (Institutional 1000(R) S&P 500(R) Funds Shares) Index Index Average 7/31/1995 10000 10000 10000 10000 10431 10490 10448 10382 Dec-95 11200 11074 11076 10856 11661 11685 11671 11456 12196 12161 12194 11884 12485 12558 12571 12266 Dec-96 13346 13560 13618 13137 13601 13770 13984 13285 15310 16085 16423 15419 16681 17489 17653 16712 Dec-97 16568 18015 18159 16967 18718 20424 20691 19093 19321 20934 21378 19513 17509 18776 19256 17281 Dec-98 21219 22883 23353 20925 22156 23827 24516 21718 23633 25524 26241 23224 22148 23839 24606 21708 Dec-99 25205 27668 28265 24987 25467 28876 28912 25971 24708 27885 28144 25347 24235 28084 27871 25402 Dec-00 22369 25513 25692 23646 19706 22308 22648 20809 20728 23715 23972 21914 17788 20103 20455 18616 1-Dec 19502 22337 22641 20666 19534 22502 22703 20626 16914 19474 19663 17947 13844 16180 16268 15064 2-Dec 14866 17501 17639 16082 14346 16986 17083 15528 16348 19659 19712 17715 16706 20248 20233 18137 3-Dec 18747 22732 22696 20183 19208 23164 23080 20430 19390 23489 23477 20646 18951 23064 23038 20113 4-Dec 20742 25324 25163 21868 20673 24841 24623 21423 20898 25351 24960 21678 7/31/2005 21517 26337 25888 22454 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Index, the S&P 500(R) Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Index measures the performance of 1,000 largest securities found in the Russell universe. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Index and the S&P 500(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 11 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Equity Index Fund For the 12-month period ended July 31, 2005, the Fifth Third Equity Index Fund (Institutional Shares) produced a total return of 13.86%, compared to its benchmark, the S&P 500(R) Index, which advanced 14.04%. 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 and operating expenses. While market inefficiencies stemming from Index membership changes occasionally offer opportunities to make up some of the difference, the latter half of the year offered few such opportunities. In fact, there were no Index constituent changes during the second calendar quarter of 2005, an event that last happened in the first quarter of 1993. Generally speaking, stocks with lower price-to-earnings 1 (P/E) ratios outperformed those with higher PE ratios during the period, reflecting a continuing preference for lower-valued companies. Supporting that trend, stocks with lower price-to-book ratios also posted stronger returns. Additionally, companies with earnings growth at the high and low ends of spectrum outperformed those in the middle, while stocks with largest market capitalizations lagged smaller stocks. From a sector standpoint, the energy group paced the Index, benefiting from surging oil prices and increasing capital expenditure budgets at companies seeking to meet steadily climbing worldwide demand. As long-term interest rates fell, income seeking investors bid up the utilities sector, which traditionally features stable dividend yields. The interest rate environment also allowed mortgage rates to linger near historically low levels, which helped homebuilders thrive and prop up the consumer discretionary sector. + On the downside, interest rate worries and accounting probes weighed on the financial services group, which was the worst performer during the period. Telecommunication services providers also lagged the benchmark as competitive pressures and limited growth potential disheartened many investors. The industrials group endured a cyclical slump as prospects for the broader economy dimmed. + Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests substantially all of its assets in common stock of companies that make up the S&P 500(R) Index. The Advisor attempts to track the performance of the S&P 500(R) Index to achieve a correlation of 0.95 between the performance of the Fund and that of the S&P 500(R) Index without taking into account the Fund's expenses. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 13.86% -1.63% 9.56% $ 24,921 - -------------------------------------------------------------------------------- Class A Shares* 7.91% -2.89% 8.73% $ 23,083 - -------------------------------------------------------------------------------- Class B Shares** 7.74% -3.00% 8.48% $ 22,579 - -------------------------------------------------------------------------------- Class C Shares** 12.72% -2.61% 8.49% $ 22,585 - -------------------------------------------------------------------------------- Advisor Shares 13.28% -2.11% 9.04% $ 23,761 - -------------------------------------------------------------------------------- Select Shares 13.79% -1.72% 9.49% $ 24,763 - -------------------------------------------------------------------------------- Preferred Shares 13.62% -1.79% 9.42% $ 24,593 - -------------------------------------------------------------------------------- Trust Shares 13.53% -1.88% 9.31% $ 24,356 - -------------------------------------------------------------------------------- S&P 500(R) Index (1) 14.04% -1.35% 9.98% $ 25,888 - -------------------------------------------------------------------------------- Lipper S&P 500(R) Index Objective Funds Average (1) 13.43% -1.89% 9.53% $ 24,857 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Exxon Mobil Corp. ................................ 2.86% General Electric Corp. ........................... 2.80% Microsoft Corp. .................................. 1.97% Citigroup, Inc. .................................. 1.73% Pfizer, Inc. ..................................... 1.51% Johnson & Johnson ................................ 1.46% Bank of America Corp. ............................ 1.34% Intel Corp. ...................................... 1.28% Wal-Mart Stores, Inc. ............................ 1.26% American International Group, Inc. ............... 1.20% + Portfolio composition is subject to change. (1) Price/Earnings (P/E) Ratio is the price of a stock divided by its historical earnings per share. Price-to-Book Ratio (P/B) is used to compare a stock's market value to its book value. 12 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Equity Index Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Lipper Equity Index S&P 500 Index Fund Objective (Institutional S&P 500(R) Funds Shares) Index Average 7/31/1995 10000 10000 10000 10428 10448 10437 Dec-95 11043 11076 11053 11617 11671 11634 12118 12194 12142 12481 12571 12502 Dec-96 13493 13618 13528 13846 13984 13871 16223 16423 16276 17401 17653 17472 Dec-97 17885 18159 17950 20359 20691 20429 21017 21378 21083 18917 19256 18977 Dec-98 22938 23353 23011 24070 24516 24126 25744 26241 25790 24101 24606 24160 Dec-99 27653 28265 27722 28266 28912 28319 27491 28144 27536 27215 27871 27256 Dec-00 25083 25692 25111 22089 22648 22116 23360 23972 23384 19915 20455 19930 1-Dec 22018 22641 22034 22057 22703 22072 19088 19663 19095 15779 16268 15789 2-Dec 17096 17639 17105 16551 17083 16549 19084 19712 19076 19564 20233 19559 3-Dec 21917 22696 21916 22272 23080 22264 22637 23477 22625 22202 23038 22181 4-Dec 24247 25163 24207 23714 24623 23671 24029 24960 23973 7/31/2005 24921 25888 24857 The minimum investment for the Institutional Share Class is $5 million, based on the initial investment of $5 million the ending value for the Institutional Shares would have been $12,460,486. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the S&P 500(R) Index and the Lipper S&P 500(R) Index Objective Funds Average. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper S&P 500(R) Index Objective Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500(R) Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper S&P 500(R) Index Objective Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 13 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Balanced Fund For the 12-month period ended July 31, 2005, the Fifth Third Balanced Fund (Institutional Shares) produced a total return of 8.73%, the Fund's benchmarks, the S&P 500(R) Index returned 14.04% and the Lehman Brothers Aggregate Bond Index advanced 4.79%. Maintaining a high quality orientation throughout the period, the underperformance of the equity portion of the Fund may largely be traced to the final three months of 2004, when lower quality stocks thrived. More specifically, riskier stocks within the information technology sector led the broader market higher in a relief rally following the quick resolution of the Presidential election. Against such a backdrop, the Fund's collection of larger software developers and stable companies within the hardware and networking spaces struggled to keep pace. + Also weighing on returns was the Fund's energy stake, a collection of integrated oil, service and drilling names that rose significantly but fell short of the benchmark. + An underweight position, relative to the benchmark, in the financial services sector contributed to gains as solid fundamentals anchored the Fund's insurance company stocks. Drug distribution and medical device companies bolstered returns from the healthcare group, offsetting extended woes within the pharmaceutical space. + Within the fixed income portion of the Fund, an underweight position in corporate bonds, which rallied as investors sought out better yielding assets, diminished performance. Despite the surge in valuations, the Fund maintained a relatively light stake in corporate debentures at the period's close, reflecting a wariness of the growing likelihood that some companies will make shareholder friendly moves-which rarely benefit bondholders. + Slipping long-term interest rates helped keep mortgage rates low, which contributed to solid gains from mortgage backed securities and asset backed securities. The Fund also benefited modestly from a shorter-than-the-benchmark duration position, which helped reduce the impact of increasing short-term rates. + Investment Risk Considerations - -------------------------------------------------------------------------------- Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 8.73% -1.89% 7.04% $ 19,738 - -------------------------------------------------------------------------------- Class A Shares* 2.97% -3.15% 6.30% $ 18,426 - -------------------------------------------------------------------------------- Class B Shares** 2.61% -3.20% 5.92% $ 17,780 - -------------------------------------------------------------------------------- Class C Shares** 7.62% -2.85% 6.11% $ 18,101 - -------------------------------------------------------------------------------- Advisor Shares 8.08% -2.44% 6.42% $ 18,636 - -------------------------------------------------------------------------------- S&P 500(R) Index (1) 14.04% -1.35% 9.98% $ 25,888 - -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index (1) 4.79% 7.01% 6.75% $ 19,219 - -------------------------------------------------------------------------------- Lipper Balanced Funds Average (1) 11.18% 2.47% 7.68% $ 21,243 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Wells Fargo & Co. ............................ 3.16% Fannie Mae, 5.50%, 6/1/33 .................... 2.86% Synovus Financial Corp. ...................... 2.53% Dell, Inc. ................................... 2.17% Microsoft Corp. .............................. 2.15% Honeywell International, Inc. ................ 1.96% Exxon Mobil Corp. ............................ 1.95% Analog Devices, Inc. ......................... 1.94% McDonald's Corp. ............................. 1.92% United Technologies Corp. .................... 1.89% + Portfolio composition is subject to change. 14 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Balanced Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Balanced Fund Lehman Brothers (Institutional Aggregate Bond Lipper Balanced Shares) S&P 500(R) Index Index Funds Average 7/31/1995 10000 10000 10000 10000 10265 10448 10219 10314 Dec-95 10629 11076 10655 10764 10784 11671 10466 11046 11050 12194 10525 11307 11530 12571 10720 11609 Dec-96 12142 13618 11041 12227 12098 13984 10980 12228 13778 16423 11383 13554 14833 17653 11761 14491 Dec-97 15066 18159 12107 14707 16182 20691 12296 15886 16097 21378 12583 16080 15068 19256 13115 15063 Dec-98 17755 23353 13159 16945 17862 24516 13094 17218 18614 26241 12979 17980 17949 24606 13067 17186 Dec-99 20531 28265 13051 18496 21674 28912 13339 19055 21626 28144 13571 18834 22103 27871 13980 19225 Dec-00 21002 25692 14568 18890 18193 22648 15010 17831 19387 23972 15095 18533 16615 20455 15791 16931 1-Dec 19228 22641 15798 18162 19010 22703 15813 18189 16744 19663 16397 16856 15351 16268 17149 15216 2-Dec 16084 17639 17419 15963 15817 17083 17661 15684 16930 19712 18103 17425 17244 20233 18077 17753 3-Dec 18444 22696 18134 19130 18551 23080 18616 19555 18517 23477 18161 19511 18326 23038 18741 19440 4-Dec 19344 25163 18920 20694 19373 24623 18829 20430 19537 24960 19396 20794 7/31/2005 19738 25888 19219 21243 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the S&P 500(R) Index, the Lehman Brothers Aggregate Bond Index and Lipper Balanced Target Maturity Funds Average. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lehman Brothers Aggregate Bond Index is generally representative of the bond market as a whole. The Lipper Balanced Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500(R) Index and the Lehman Brothers Aggregate Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Balanced Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in the underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 15 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Micro Cap Value Fund For the 12-month period ended July 31, 2005, the Fifth Third Micro Cap Value Fund (Institutional Shares) produced a total return of 13.86%, lagging its benchmarks, the Russell 2000(R) Value Index, and the Russell Micro Cap Index (1) which gained 26.72% and 23.59%, respectively. During the period, the small cap sector exhibited its traditionally volatile characteristics. After climbing about 20% through the final months of 2004, worries over the economy, Iraq and oil prices dampened enthusiasm throughout the first part of 2005. Market preferences swinging from small to large cap stocks accelerated the swoon through the spring, but strong second quarter earnings reports bolstered a solid recovery through the period's closing weeks. Given the unknowns of the broader equity market and declining long-term interest rates, many investors sought out stocks offering better dividend yields, which drove up the utilities sector. As valuations heightened, the Fund's underweight stake, relative to the benchmark, suffered and weighed on returns. + Also negatively affecting performance was a greater-than-the-benchmark position in consumer discretionary stocks, which struggled in the face of up-and-down consumer sales reports. Given the reasonable valuations across the sector, the Fund maintained its overweight stake, although it generally avoided companies within the beleaguered automobile industry. + An underweight position in the financial sector proved positive as the dynamics of a flattening yield curve-where short-term interest rates rose faster than long-term rates-weighed. The Fund's financial holdings focused primarily on insurance-related stocks as opposed to banks, where values exceeded reasonable levels considering the underlying fundamentals. + Elsewhere, an overweight position in industrials helped as the economy's growth proved enduring, and the significant jump in oil prices lifted many stocks within the energy sector. The Fund actually slightly reduced its energy exposure as equipment manufacturers that enjoyed rallies on the news that capital expenditure levels were increasing across the industry. + Investment Risk Considerations - -------------------------------------------------------------------------------- Micro capitalization funds typically carry additional risk since micro-cap companies generally have a higher risk of failure. Historically, micro-cap stocks have experienced a greater degree of market volatility than large company stocks on average. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value (2) --------- ------ ------ --------- --------- Institutional Shares 2/1/98 13.86% 19.04% 15.62% $29,678 - -------------------------------------------------------------------------------- Class A Shares* 2/1/98 7.95% 17.59% 14.69% $27,929 - -------------------------------------------------------------------------------- Class B Shares** 2/1/98 8.54% 18.00% 14.78% $28,101 - -------------------------------------------------------------------------------- Class C Shares** 2/1/98 13.54% 18.33% 15.05% $28,600 - -------------------------------------------------------------------------------- Advisor Shares 2/1/98 13.57% 18.61% 15.24% $28,943 - -------------------------------------------------------------------------------- Russell 2000(R) Value Index (1) 26.72% 16.64% 11.19% $22,163 - -------------------------------------------------------------------------------- Russell Micro Cap(R) Index (1) 23.59% 11.72% N/A N/A - -------------------------------------------------------------------------------- Lipper Small-Cap Value Funds Average (1) 24.19% 16.10% 10.45% $21,338 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Stepan Co. .................................. 2.42% Material Sciences Corp. ..................... 2.31% Apogee Enterprises, Inc. .................... 1.73% Symmetricom, Inc. ........................... 1.63% Skechers U.S.A., Inc. ....................... 1.57% Powell Industries, Inc. ..................... 1.52% Hartmarx Corp. .............................. 1.50% Blair Corp. ................................. 1.37% Dril-Quip, Inc. ............................. 1.35% Brush Wellman, Inc. ......................... 1.34% + Portfolio composition is subject to change. 16 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Micro Cap Value Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Micro Cap Value Lipper Fund Small-Cap (Institutional Russell 2000(R) Russell Micro Value Funds Shares) Value Index Cap(R) Index Average 2/1/1998 10000 10000 10000 10480 11035 11126 10280 10636 10500 8380 8735 8363 Dec-98 9713 9527 9400 10217 8604 8383 12393 10028 9928 11305 9244 9202 Dec-99 11799 9385 9673 13004 9744 10039 12373 9934 10000 10170 12562 10663 9952 10948 Dec-00 11654 11528 8694 11413 12708 11640 8683 11424 14845 12994 10601 12982 12636 11262 8442 11272 1-Dec 14323 13144 10223 13214 15819 14403 10624 14332 15843 14098 10252 13763 12565 11097 7958 11197 2-Dec 14358 11643 8577 11715 14190 11051 8360 11084 18641 13562 10742 13284 20867 14610 12277 14282 3-Dec 24323 17001 14268 16545 26445 18178 15196 17569 27127 18332 14929 17846 26445 18359 14100 17702 4-Dec 29975 20783 16286 19971 28842 19957 15075 19630 27654 20970 15553 20204 7/31/2005 29678 22163 16661 21338 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 2000(R) Value Index, the Russell Micro Cap(R) Index and the Lipper Small-Cap Value Funds Average. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. The Russell Micro Cap(R) Index is a subset of the Russell 2000(R) Value Index. This custom index consists of the smallest one-half of the stocks in the Russell 2000(R) Value Index using market capitalization as of June 30, of each year after the Russell reconstitution of the Russell 2000(R) Value Index. The Lipper Small-Cap Value Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Value Index and the Russell Micro Cap(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Value Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. 17 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Small Cap Value Fund For the 12-month period ended July 31, 2005, the Fifth Third Small Cap Value Fund (Institutional Shares) produced a total return of 23.59%, trailing its benchmark, the Russell 2000(R) Value Index, which gained 26.72%. Despite spiking oil prices and rising short-term interest rates, stocks performed well during the period. More specifically, small cap equities extended their run of outperformance, compared to larger companies, although undervalued stocks were difficult to find by the period's end. Against this backdrop, stock picking in the small cap value space proved tricky and some of the Fund's holdings turned in weak results, which reduced returns. For example, insurance-related stocks in the financial services sector did not perform as well as expected as the fallout from an investigation by the New York Attorney General into industry practices lingered beyond the period's opening months. + Company specific disappointments also hindered performance in the energy and materials sectors, where companies were punished for failing to meet expectations. In general, the Fund's exposure to the energy sector was pared back as valuations surged while oil prices touched new highs. + Healthcare sector investments hindered the Fund through the first part of the period but rebounded nicely through the second half, helped by some merger activity, to finish as the Fund's top performing group. + Utility stocks, which were purchased for solid yields and performed well as long-term interest rates remained relatively tame, also bolstered returns. + At the period's close, the Fund held overweight stakes in the materials, consumer discretionary, consumer staples, energy, healthcare, and utilities sectors and underweight positions in the industrials, technology and financial sectors. Notable additions occurred in the financial area, where the Fund maintained its insurance exposure and picked up some diversified financial services stocks. + Investment Risk Considerations - -------------------------------------------------------------------------------- Small capitalization funds typically carry additional risk since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value (2) --------- ------ --------- --------- Institutional Shares 4/1/03 23.59% 26.66% $ 17,349 - -------------------------------------------------------------------------------- Class A Shares* 4/1/03 17.08% 23.55% $ 16,374 - -------------------------------------------------------------------------------- Class B Shares** 4/1/03 17.35% 24.47% $ 16,660 - -------------------------------------------------------------------------------- Class C Shares** 4/1/03 22.39% 25.37% $ 16,940 - -------------------------------------------------------------------------------- Advisor Shares 4/1/03 23.00% 26.03% $ 17,150 - -------------------------------------------------------------------------------- Russell 2000(R) Value Index (1) 26.72% 34.75% $ 20,055 - -------------------------------------------------------------------------------- Lipper Small-Cap Core Funds Average (1) 24.01% 31.28% $ 18,940 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Platinum Underwriters Holdings, Ltd. ......... 2.80% Service Corp. International................... 2.58% Tommy Hilfiger Corp. ......................... 2.20% Priority Healthcare Corp., Class B............ 2.17% Agrium, Inc. ................................. 2.14% Endurance Specialty Holdings, Ltd. ........... 2.13% Steris Corp. ................................. 2.04% Performance Food Group Co. ................... 1.95% Bob Evans Farms, Inc. ........................ 1.95% Westar Energy, Inc. .......................... 1.94% + Portfolio composition is subject to change. 18 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Small Cap Value Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Small Cap Value Fund Russell 2000(R) Lipper Small-Cap (Institutional Shares) Value Index Core Funds Average 4/1/2003 10000 10000 10000 11240 12272 12155 11860 13220 13146 3-Dec 13841 15384 15123 14837 16449 16023 14732 16588 16174 14346 16613 15809 4-Dec 15471 18806 17885 16041 18058 17287 16520 18975 17865 7/31/2005 17349 20055 18940 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 2000(R) Value Index and the Lipper Small-Cap Core Funds Average. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios. The Lipper Small-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. 19 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Multi Cap Value Fund For the 12-month period ended July 31, 2005, the Fifth Third Multi Cap Value Fund (Institutional Shares) produced a total return of 22.51%, compared to its benchmarks, the Russell 3000(R) Value Index and the Russell MidCap(R) Value Index which returned 19.68% and 31.15%. The multi-year rally by smaller capitalization stocks started to sputter during the period, but it was mid cap stocks-and not the largest companies-that generally picked up the slack. As a result, the Fund's increasing bias toward mid-sized opportunities contributed to positive returns. + The decision to move the Fund up the capitalization scale stemmed in part from the determination that the valuation discount that small cap companies formerly enjoyed is essentially gone, as is the historical premium placed on large cap stocks. Accordingly, as the Fund realized returns during the period, the proceeds were usually directed into larger stocks. + From a sector standpoint, the energy group was the largest contributor to performance as rising oil prices aided in the turnaround efforts at some of the Fund's holdings. Another leader was the consumer discretionary group, where a number of buyouts of retailers bolstered performance. + The Fund's healthcare stake proved a double-edged sword during the period. While its managed care holdings enjoyed a tremendous rise, due in part to the government's revamping of Medicare rules, the large pharmaceutical names lagged amid drug recalls and pricing issues. + Similarly, information technology holdings surged through the first part of the period as economic optimism prevailed, only to drag on performance through much of the latter half as sentiments cooled. Given the traditional cyclical nature of the tech industry, especially in the semiconductor space, the Fund maintained its positions in anticipation of a potential reversal. + The materials sector was the worst performer during the period, slowed by the economic pessimism that swept through the markets during the spring. + Investment Risk Considerations - -------------------------------------------------------------------------------- Small capitalization funds typically carry additional risk since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------- ------ ------- --------- Institutional Shares 22.51% 11.63% 12.24% $ 31,723 - -------------------------------------------------------------------------------- Class A Shares* 16.10% 10.15% 11.46% $ 29,598 - -------------------------------------------------------------------------------- Class B Shares** 16.33% 10.42% 11.73% $ 30,311 - -------------------------------------------------------------------------------- Class C Shares** 21.24% 10.67% 11.72% $ 30,282 - -------------------------------------------------------------------------------- Advisor Shares 21.90% 11.10% 11.93% $ 30,873 - -------------------------------------------------------------------------------- Russell 3000(R) Value Index (1) 19.68% 7.60% 12.06% $ 31,229 - -------------------------------------------------------------------------------- Russell MidCap(R) Value Index (1) 31.15% 15.40% 14.42% $ 38,476 - -------------------------------------------------------------------------------- Lipper Multi-Cap Value Funds Average (1) 17.55% 6.76% 10.23% $ 26,882 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Transocean, Inc. ................................. 2.05% ConocoPhillips ................................... 1.71% Marathon Oil Corp. ............................... 1.59% Borg Warner, Inc. ................................ 1.46% Humana, Inc. ..................................... 1.36% Honeywell International, Inc. .................... 1.34% CIGNA Corp. ...................................... 1.21% SUPERVALU, Inc. .................................. 1.21% Schlumberger Ltd. ................................ 1.14% Jefferson-Pilot Corp. ............................ 1.14% + Portfolio composition is subject to change. 20 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Multi Cap Value Fund GROWTH OF A $10,000 INVESTMENT Russell Russell Fifth Third 3000(R) MidCap(R) Lipper Multi-Cap Multi Cap Value Fund Value Value Value Funds (Institutional Shares) Index Index Average 7/31/1995 10000 10000 10000 10000 10294 10502 10430 10440 Dec-95 10373 11160 10904 10855 10796 11778 11513 11432 10950 12007 11734 11738 11291 12338 12072 12017 Dec-96 12356 13570 13113 13009 12678 13878 13336 13206 14512 15929 15016 15033 16193 17561 16931 16621 Dec-97 15836 18297 17619 16677 17017 20370 19380 18611 16431 20382 18882 18358 12970 17906 16303 15735 Dec-98 14452 20767 18515 18244 14543 20882 17939 18271 17266 23315 19944 20330 15705 21064 17823 18273 Dec-99 16342 22148 18495 19396 18418 22305 18681 19380 18269 21360 18367 18942 19194 23033 20140 20233 Dec-00 20225 23928 22042 21185 19953 22635 21263 20418 21147 23846 22762 21600 18383 21196 20132 18995 1-Dec 21831 22891 22554 21079 21785 23919 24336 21785 19972 21999 23199 19449 16835 17828 19034 15928 2-Dec 18375 19416 20379 17208 17189 18468 19553 16308 21181 21728 23051 19164 22316 22266 24420 19727 3-Dec 25846 25461 28137 22424 26968 26309 29641 23177 27041 26540 30154 23371 26680 26918 30677 23287 4-Dec 29827 29776 34807 25619 29715 29697 35077 25488 30334 30279 36726 25970 7/31/2005 31723 31229 38476 26882 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 3000(R) Value Index, the Russell MidCap(R) Value Index and the Lipper Multi-Cap Value Funds Average. The Russell 3000(R) Value Index measures the performance of those companies in the Russell 3000(R) Index with lower price-to-book ratios and lower forecasted growth values. The Russell MidCap(R) Value Index measures the performance of those Russell mid cap companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Multi-Cap Value Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 3000(R) Value and the Russell MidCap(R) Value Indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Multi-Cap Value Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 21 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Disciplined Large Cap Value Fund For the 12-month period ended July 31, 2005, the Fifth Third Disciplined Large Cap Value Fund (Institutional Shares) produced a total return of 16.07%, compared to its benchmark, the Russell 1000(R) Value Index, which returned 19.04%. The bulk of the Fund's underperformance occurred during the fourth quarter of 2004 when euphoria over the decisiveness of the U.S. Presidential election and the pace of the economic recovery took hold and market sentiment shifted decidedly away from higher quality stocks. More specifically, adverse stock selection in the healthcare, utilities and consumer discretionary sectors hindered performance. In the healthcare space, the Fund was significantly exposed to pharmaceutical stocks, which fell out of favor over drug safety concerns. + Within the utilities and consumer discretionary groups, low quality, higher risk stocks propelled the benchmark to a greater extent than the Fund. Other Fund characteristics that detracted from performance included an emphasis on stocks with lower price-to-book ratios and those with lower yields. + Stock selection in the energy sector added value, with exposure to refining capabilities emerging as the common thread among the Fund's leading oil and natural gas holdings. + A substantial underweight in financials, which were hit by accounting issues and interest rate worries, helped, as did an aversion to the largest stocks in the Index, which underperformed smaller issues. + Other Fund characteristics that aided returns include an emphasis on stocks with a lower price-to-sales ratio, stocks with positive earnings revisions and companies with higher return on equity ratios. + At the period's end, the Fund held overweight stakes in the industrials and materials sectors, which we believe stand to experience continually improving fundamentals if the economy keeps expanding. The Fund was underweight in the financial services, utilities and telecommunications services sectors, which carry sensitivities to rising interest rates. + Investment Risk Considerations - -------------------------------------------------------------------------------- Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 16.07% 6.73% 10.97% $ 28,311 - -------------------------------------------------------------------------------- Class A Shares* 9.96% 5.35% 10.19% $ 26,386 - -------------------------------------------------------------------------------- Class B Shares** 9.85% 5.59% 9.94% $ 25,785 - -------------------------------------------------------------------------------- Class C Shares** 14.96% 5.66% 9.97% $ 25,858 - -------------------------------------------------------------------------------- Russell 1000(R) Value Index (1) 19.04% 6.90% 11.96% $ 30,961 - -------------------------------------------------------------------------------- Lipper Equity Income Funds Average (1) 16.33% 5.36% 9.60% $ 25,399 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. The quoted performance of the Disciplined Large Cap Value Fund includes performance of certain collectively managed accounts advised by Fifth Third Bank, prior to the Disciplined Large Cap Value Fund's commencement of operations on January 27, 1997, as adjusted to reflect the expenses associated with the Fund (without waivers or reimbursements). These collectively managed accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If such accounts had been registered, the performance may have been adversely affected. The performance shown reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The performance also reflects reinvestment of all dividends and capital-gains distributions. The inception dates for the Institutional, Class B and Class C Shares of the Disciplined Large Cap Value Fund are August 11, 1998, October 11, 2000 and January 27, 1997, respectively. Prior to such dates, quoted performance reflects performance of Class A Shares and is adjusted to reflect expenses and applicable sales charges of Class B and Class C Shares. During the period shown, the Advisor and/or affiliates waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance would have been lower. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Marathon Oil Corp. ........................ 3.25% ConocoPhillips ............................ 3.19% MetLife, Inc. ............................. 2.97% SunTrust Banks, Inc. ...................... 2.79% Royal Dutch Shell PLC ADR, A Shares ....... 2.76% Dow Chemical Co. .......................... 2.60% Hartford Financial Services Group, Inc. ... 2.59% Pfizer, Inc. .............................. 2.50% J.P. Morgan Chase & Co. ................... 2.41% Merrill Lynch & Co., Inc. ................. 2.38% + Portfolio composition is subject to change. 22 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Disciplined Large Cap Value Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Disciplined Large Cap Value Fund Russell 1000(R) Lipper Equity (Institutional Shares) Value Index Income Funds Average 7/31/1995 10000 10000 10000 10418 10508 10475 11650 11840 11593 11650 11840 11593 12113 12044 11923 12384 12394 12164 Dec-96 13254 13630 13036 13540 13980 13245 15610 16041 14848 16744 17638 15925 Dec-97 18311 18426 16499 20428 20574 18075 20153 20666 17924 18909 18272 16481 Dec-98 21612 21306 18588 20702 21611 18472 22284 24048 20264 19746 21692 18665 Dec-99 20595 22871 19487 19203 22981 19578 20482 21904 19281 21986 23626 20635 Dec-00 23220 24476 21314 20725 23043 20175 21186 24168 20896 19258 21521 19032 1-Dec 20352 23108 20204 20692 24053 20855 18659 22004 19010 16072 17873 15836 2-Dec 17560 19521 17051 16631 18571 16214 19803 21779 18738 20436 22229 19091 3-Dec 23554 25383 21523 24233 26152 22021 24825 26382 22224 25024 26789 22324 4-Dec 26787 29569 24352 26893 29595 24315 27203 30091 24614 7/31/2005 28311 30961 25399 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Value Index and the Lipper Equity Income Funds Average. The Russell 1000(R) Value Index measures the performance of 1,000 securities found in the Russell universe with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earning ratios, higher dividend yields and lower forecasted growth values. The Lipper Equity Income Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Equity Income Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 23 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Aggressive Fund SM For the 12-month period ended July 31, 2005, the Fifth Third LifeModel Aggressive Fund SM (Institutional Shares) produced a total return of 16.91%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers Intermediate Government/Credit Bond Indices, advanced 17.41% and 3.06%, respectively. Over the course of the year, equity investors enjoyed above average returns, driven by a continuation of double-digit corporate earnings growth as well as low bond yields. More specifically, mid cap, small cap and international stocks led the way as all three outperformed large cap stocks in an extension of a trend that has been in place for several years. As the Fund was biased toward stocks for the entire period, shareholders benefited from the above average returns equities offered. In addition, the Fund's emphasis on mid cap, small cap and international stocks for most of the fiscal year aided in its performance, boosted by strong returns from the underlying funds. + At the period's close, challenges facing the U.S. economy and financial markets included an active Federal Reserve and concerns about energy prices. Operating with an outlook that's ultimately optimistic, the Fund's focus remained on maintaining the best risk-reward posture within such conditions. 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 July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value (2) --------- ------ --------- --------- Institutional Shares 8/1/02 16.91% 14.55% $ 15,026 - -------------------------------------------------------------------------------- Class A Shares* 8/1/02 10.72% 12.27% $ 14,146 - -------------------------------------------------------------------------------- Class B Shares** 8/1/02 10.73% 12.57% $ 14,262 - -------------------------------------------------------------------------------- Class C Shares** 8/1/02 15.80% 13.40% $ 14,578 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index (1) 17.41% 14.66% $ 15,075 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index (1) 3.06% 4.39% $ 11,373 - -------------------------------------------------------------------------------- LifeModel Aggressive Target Neutral Asset Class Index Blend (3) 15.94% 13.70% $ 14,699 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Fifth Third Quality Growth Fund 23.32% Fifth Third Disciplined Large Cap Value Fund 16.61% Fifth Third Large Cap Core Fund 13.83% Fifth Third Mid Cap Growth Fund 12.52% Fifth Third Multi Cap Value Fund 9.93% Fifth Third Small Cap Growth Fund 8.12% Fifth Third Small Cap Value Fund 6.51% Fifth Third International Equity Fund 6.10% Fifth Third Intermediate Bond Fund 3.00% Fifth Third Institutional Money Market Fund 0.06% + Portfolio composition is subject to change. 24 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Aggressive Fund (SM) GROWTH OF A $10,000 INVESTMENT LifeModel Fifth Third Lehman Brothers Aggressive LifeModel Dow Jones Intermediate Target Neutral Aggressive Fund (SM) Wilshire Government/Credit Asset Class (Institutional Shares) 5000 Index Bond Index Index Blend 8/1/2002 10000 10000 10000 10000 9070 9049 10331 9177 2-Dec 9798 9757 10506 9844 9346 9456 10664 9585 10990 11017 10954 11030 11562 11425 10952 11400 3-Dec 13136 12845 10959 12671 13455 13179 11230 12999 13491 13349 10946 13117 13062 13111 11243 12943 4-Dec 14267 14466 11292 14149 14010 14120 11194 13833 14399 14469 11471 14176 7/31/2005 15026 15075 11373 14699 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. (3) The LifeModel Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Composite Index (90%) and the Lehman Brothers Intermediate Government/Credit Bond Index (10%). The LifeModel Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 25 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Moderately Aggressive Fund (SM) For the 12-month period ended July 31, 2005, the Fifth Third LifeModel Moderately Aggressive Fund (SM) (Institutional Shares) produced a total return of 13.87%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers Intermediate Government/Credit Bond Indices, advanced 17.41% and 3.06%, respectively. Over the course of the year, equity investors enjoyed above average returns, driven by a continuation of double-digit corporate earnings growth as well as low bond yields. As a group, stocks outperformed bonds by a wide margin. More specifically, mid cap, small cap and international stocks led the way as all three outgained large cap stocks in an extension of a trend that has been in place for several years. As the Fund was biased toward stocks for the entire period, shareholders benefited from the above average returns equities offered. In addition, the Fund's emphasis on mid cap, small cap and international stocks for most of the fiscal year aided in its performance, boosted by strong returns from the underlying funds. + At the period's close, challenges facing the U.S. economy and financial markets included an active Federal Reserve and concerns about energy prices. Operating with an outlook that's ultimately optimistic, the Fund's focus remained on maintaining the best risk-reward posture within such conditions. 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 July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value (2) --------- ------ --------- --------- Institutional Shares 8/1/02 13.87% 13.71% $ 14,699 - -------------------------------------------------------------------------------- Class A Shares* 8/1/02 7.82% 11.50% $ 13,858 - -------------------------------------------------------------------------------- Class B Shares** 8/1/02 7.68% 11.80% $ 13,970 - -------------------------------------------------------------------------------- Class C Shares** 8/1/02 12.75% 12.62% $ 14,279 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index (1) 17.41% 14.66% $ 15,075 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index (1) 3.06% 4.39% $ 11,373 - -------------------------------------------------------------------------------- LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend (3) 13.02% 11.73% $ 13,947 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Fifth Third Quality Growth Fund 18.65% Fifth Third Disciplined Large Cap Value Fund 13.35% Fifth Third Large Cap Core Fund 10.75% Fifth Third Mid Cap Growth Fund 10.30% Fifth Third Intermediate Bond Fund 9.63% Fifth Third Multi Cap Value Fund 8.14% Fifth Third Short Term Bond Fund 6.89% Fifth Third Small Cap Growth Fund 6.44% Fifth Third Bond Fund 5.89% Fifth Third Small Cap Value Fund 5.07% Fifth Third International Equity Fund 4.21% Fifth Third Institutional Money Market Fund 0.68% + Portfolio composition is subject to change. 26 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Moderately Aggressive Fund (SM) GROWTH OF A $10,000 INVESTMENT Fifth Third LifeModel LifeModel Moderately Lehman Brothers Moderately Aggressive Fund(SM) Dow Jones Intermediate Aggressive Target (Institutional Wilshire Government/Credit Neutral Asset Shares) 5000 Index Bond Index Class Index Blend 8/1/2002 10000 10000 10000 10000 9700 9049 10331 9432 2-Dec 10290 9757 10506 10009 10011 9456 10664 9837 11406 11017 10954 11043 11866 11425 10952 11333 3-Dec 13125 12845 10959 12311 13421 13179 11230 12628 13385 13349 10946 12646 13117 13111 11243 12591 4-Dec 14086 14466 11292 13511 13871 14120 11194 13252 14234 14469 11471 13582 7/31/2005 14699 15075 11373 13947 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. (3) The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Composite Index (70%) and the Lehman Brothers Intermediate Government/Credit Bond Index (30%). The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 27 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Moderate Fund (SM) For the 12-month period ended July 31, 2005, the Fifth Third LifeModel Moderate Fund (SM) (Institutional Shares) produced a total return of 10.79%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers Intermediate Government/Credit Bond Indices, advanced 17.41% and 3.06%, respectively. Over the course of the year, balanced fund investors enjoyed above average returns due to strong stock market performance. These robust returns were driven by a continuation of double-digit corporate earnings growth as well as low bond yields. Meanwhile, bond investors generally experienced below average returns as short-term bond yields were pushed higher by an active Federal Reserve, causing a corresponding drop in prices. Interest rates on longer term maturities changed little during the period, offering small price increases in some cases but primarily providing returns in line with yields. Mid cap, small cap and international stocks led the way for equity investors as all three outperformed large cap stocks in an extension of a trend that has been in place for several years. As the Fund was biased toward stocks for the entire period-with an added emphasis on mid cap, small cap and international holdings for the majority of the 12 months-shareholders benefited from the above average returns equities offered. The bond portion of the portfolio was defensively positioned, which detracted from performance, relative to the benchmark, as long-term bond yields remained lower than expected. Strong performance by individual bond managers, however, helped offset the lagging returns. + At the period's close, challenges facing the U.S. economy and financial markets included an uncertain timetable for the Federal Reserve's rate hike campaign and concerns about energy prices. Operating with an outlook that's ultimately optimistic, the Fund's focus remained on maintaining the best risk-reward posture within such conditions. 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 July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value (2) --------- ------ --------- --------- Institutional Shares 8/1/02 10.79% 10.10% $ 13,344 - -------------------------------------------------------------------------------- Class A Shares* 8/1/02 4.90% 7.94% $ 12,574 - -------------------------------------------------------------------------------- Class B Shares** 8/1/02 4.58% 8.15% $ 12,645 - -------------------------------------------------------------------------------- Class C Shares** 8/1/02 9.64% 9.03% $ 12,958 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index (1) 17.41% 14.66% $ 15,075 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index (1) 3.06% 4.39% $ 11,373 - -------------------------------------------------------------------------------- LifeModel Moderate Target Neutral Asset Class Index Blend (3) 10.13% 9.69% $ 13,199 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Fifth Third Intermediate Bond Fund 18.54% Fifth Third Quality Growth Fund 13.49% Fifth Third Short Term Bond Fund 12.79% Fifth Third Bond Fund 10.85% Fifth Third Disciplined Large Cap Value Fund 9.75% Fifth Third Mid Cap Growth Fund 8.11% Fifth Third Large Cap Core Fund 8.00% Fifth Third Multi Cap Value Fund 6.36% Fifth Third Small Cap Growth Fund 5.40% Fifth Third Small Cap Value Fund 4.24% Fifth Third International Equity Fund 2.47% + Portfolio composition is subject to change. 28 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Moderate Fund (SM) GROWTH OF A $10,000 INVESTMENT Fifth Third LifeModel LifeModel Lehman Brothers Moderate Moderate Fund (SM) Dow Jones Intermediate Target Neutral (Institutional Wilshire Government/Credit Asset Class Shares) 5000 Index Bond Index Index Blend 8/1/2002 10000 10000 10000 10000 9594 9049 10331 9687 2-Dec 10053 9757 10506 10164 9894 9456 10664 10083 10944 11017 10954 11039 11269 11425 10952 11247 3-Dec 12129 12845 10959 11938 12449 13179 11230 12242 12367 13349 10946 12166 12220 13111 11243 12223 4-Dec 12892 14466 11292 12873 12736 14120 11194 12665 13045 14469 11471 12981 7/31/2005 13344 15075 11373 13199 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. (3) The LifeModel Moderate Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Composite Index (50%) and the Lehman Brothers Intermediate Government/Credit Bond Index (50%). The LifeModel Moderate Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 29 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Moderately Conservative Fund (SM) For the 12-month period ended July 31, 2005, the Fifth Third LifeModel Moderately Conservative Fund (SM) (Institutional Shares) produced a total return of 9.24%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers Intermediate Government/Credit Bond Indices, advanced 17.41% and 3.06%, respectively. Over the course of the year, more conservative investors had the potential to enjoy above average returns as long as they maintained some representation in the stock market. There, robust returns were driven by a continuation of double-digit corporate earnings growth as well as low bond yields. Meanwhile, bond investors generally experienced below average returns as short-term bond yields were pushed higher by an active Federal Reserve, causing a corresponding drop in prices. Interest rates on longer term maturities changed little during the period, offering small price increases in some cases but primarily providing returns in line with yields. Because the Fund was biased towards the higher end of its permissible allocation for stocks for the entire period, shareholders benefited from the above average returns equities offered in relation to fixed income investments. The bond portion of the portfolio was defensively positioned, which detracted from performance, relative to the benchmark, as long-term bond yields remained lower than expected. Strong performance by individual bond managers, however, helped offset the lagging returns. + At the period's close, challenges facing the U.S. economy and financial markets included an uncertain timetable for the Federal Reserve's rate hike campaign and concerns about energy prices. Operating with an outlook that's ultimately optimistic, the Fund's focus remained on maintaining the best risk-reward posture within such conditions. 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 July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value (2) --------- ------ --------- --------- Institutional Shares 8/1/02 9.24% 8.17% $ 12,655 - -------------------------------------------------------------------------------- Class A Shares* 8/1/02 3.48% 6.04% $ 11,921 - -------------------------------------------------------------------------------- Class B Shares** 8/1/02 3.10% 6.21% $ 11,979 - -------------------------------------------------------------------------------- Class C Shares** 8/1/02 8.18% 7.10% $ 12,282 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index (1) 17.41% 14.66% $ 15,075 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index (1) 3.06% 4.39% $ 11,373 - -------------------------------------------------------------------------------- LifeModel Moderately Conservative Target Neutral Asset Class Index Blend (3) 8.70% 8.66% $ 12,828 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Fifth Third Intermediate Bond Fund 23.59% Fifth Third Short Term Bond Fund 15.75% Fifth Third Bond Fund 12.89% Fifth Third Quality Growth Fund 11.93% Fifth Third Disciplined Large Cap Value Fund 8.66% Fifth Third Mid Cap Growth Fund 6.47% Fifth Third Large Cap Core Fund 6.04% Fifth Third Multi Cap Value Fund 5.10% Fifth Third Small Cap Growth Fund 4.24% Fifth Third Small Cap Value Fund 3.33% Fifth Third International Equity Fund 1.61% Fifth Third Institutional Money Market Fund 0.39% + Portfolio composition is subject to change. 30 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Moderately Conservative Fund (SM) GROWTH OF A $10,000 INVESTMENT Fifth Third LifeModel LifeModel Moderately Moderately Lehman Brothers Conservative Conservative Fund (SM) Dow Jones Intermediate Target Neutral (Institutional Wilshire Government/Credit Asset Class Shares) 5000 Index Bond Index Index Blend 8/1/2002 10000 10000 10000 10000 9517 9049 10331 9816 2-Dec 9958 9757 10506 10237 9844 9456 10664 10203 10726 11017 10954 11030 10988 11425 10952 11197 3-Dec 11674 12845 10959 11747 11925 13179 11230 12045 11817 13349 10946 11924 11751 13111 11243 12033 4-Dec 12291 14466 11292 12554 12158 14120 11194 12370 12437 14469 11471 12679 7/31/2005 12655 15075 11373 12828 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. (3) The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Composite Index (40%) and the Lehman Brothers Intermediate Government/ Credit Bond Index (60%). The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 31 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Conservative Fund (SM) For the 12-month period ended July 31, 2005, the Fifth Third LifeModel Conservative Fund (SM) (Institutional Shares) produced a total return of 6.38%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers Intermediate Government/Credit Bond Indices, advanced 17.41% and 3.06%, respectively. Over the course of the year, conservative investors had the potential to enjoy above average returns as long as they maintained some representation in the stock market. There, robust returns were driven by a continuation of double-digit corporate earnings growth as well as low bond yields. Meanwhile, bond investors generally experienced below average returns as short-term bond yields were pushed higher by an active Federal Reserve, causing a corresponding drop in prices. Interest rates on longer term maturities changed little during the period, offering small price increases in some cases but primarily providing returns in line with yields. As the Fund maintained a relatively strong presence in the stock market, within the Fund's permissible allocation guidelines, shareholders benefited from the above average returns equities offered in relation to fixed income investments. The bond portion of the portfolio was defensively positioned, which detracted from performance, relative to the benchmark, as long-term bond yields remained lower than expected. Strong performance by individual bond managers, however, helped offset the lagging returns. + At the period's close, challenges facing the U.S. economy and financial markets included an uncertain timetable for the Federal Reserve's rate hike campaign and concerns about energy prices. The potential for continued volatility in the bond market remains high, although investors may focus on the safety and stability of bonds issued by the government and its agencies. Operating with an outlook that's ultimately optimistic, the Fund's focus remained on maintaining the best risk-reward posture within such conditions. 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 July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value (2) --------- ------ --------- --------- Institutional Shares 8/1/02 6.38% 6.47% $ 12,067 - -------------------------------------------------------------------------------- Class A Shares* 8/1/02 0.83% 4.37% $ 11,368 - -------------------------------------------------------------------------------- Class B Shares** 8/1/02 0.34% 4.51% $ 11,413 - -------------------------------------------------------------------------------- Class C Shares** 8/1/02 5.30% 5.41% $ 11,710 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index (1) 17.41% 14.66% $ 15,075 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index (1) 3.06% 4.39% $ 11,373 - -------------------------------------------------------------------------------- LifeModel Conservative Target Neutral Asset Class Index Blend (3) 5.85% 6.54% $ 12,094 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Fifth Third Intermediate Bond Fund 32.18% Fifth Third Short Term Bond Fund 21.83% Fifth Third Bond Fund 17.59% Fifth Third Quality Growth Fund 7.16% Fifth Third Disciplined Large Cap Value Fund 4.26% Fifth Third Mid Cap Growth Fund 4.20% Fifth Third Small Cap Growth Fund 3.66% Fifth Third Large Cap Core Fund 3.01% Fifth Third Multi Cap Value Fund 2.30% Fifth Third Small Cap Value Fund 1.87% Fifth Third International Equity Fund 1.01% Fifth Third Institutional Money Market Fund 0.93% + Portfolio composition is subject to change. 32 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Fifth Third LifeModel Conservative Fund (SM) GROWTH OF A $10,000 INVESTMENT Fifth Third Lifemodel Lifemodel Conservative Lehman Brothers Conservative Fund (SM) Dow Jones Intermediate Target Neutral (Institutional Wilshire 5000 Government/Credit Asset Class Shares) Index Bond Index Index Blend 8/1/2002 10000 10000 10000 10000 9909 9049 10331 10073 2-Dec 10233 9757 10506 10377 10245 9456 10664 10437 10840 11017 10954 11000 10996 11425 10952 11082 3-Dec 11383 12845 10959 11356 11609 13179 11230 11641 11450 13349 10946 11436 11500 13111 11243 11643 4-Dec 11819 14466 11292 11919 11714 14120 11194 11779 11979 14469 11471 12073 7/31/2005 12067 15075 11373 12094 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. (3) The LifeModel Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Composite Index (20%) and the Lehman Brothers Intermediate Government/Credit Bond Index (80%). The LifeModel Conservative Target Neutral Asset Class Blend Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 33 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Strategic Income Fund For the 12-month period ended July 31, 2005, the Fifth Third Strategic Income Fund (Institutional Shares) produced a total return of 8.21%, topping its benchmark, the Lehman Brothers Intermediate Credit Bond Index, which returned 3.88%. Adhering to an overarching strategy of protecting shareholders' capital while generating an optimal income stream, the Fund benefited from an uncharacteristic flattening of the yield curve. Typically, when the Federal Reserve engages in a rate hike campaign such as the one it conducted over the past 12 months, when it raised short-term lending rates from 1.25% to 3.25%, long term rates go up, too. But this time, yields on 10-year Treasuries dropped. As a result, income-oriented investors bid up virtually any security offering better yields. Top performers within the Fund included real estate investment trusts (REITs), especially top-tier operators of retail facilities, which backed solid dividend returns with good earnings growth. + Preferred stock issues tied to REITs also posted solid returns an the Fund's small stake appreciated accordingly. Elsewhere, long-dated corporate bonds performed better than the overall fixed income market and contributed to the Fund's gains as well. + Within the corporate bond space, automotive-related issues struggled and somewhat hindered the Fund's performance, although it held an underweight stake, relative to the benchmark. Preferred issues from government-backed mortgage agencies Freddie Mac and Fannie Mae also underperformed, compared to their peers, and added a modestly negative impact on returns. + As REITs commanded more attention and valuations expanded, the Fund maintained a steady weighting by booking some profits. Its stake in preferred stocks was pared back to reduce its exposure to the risk that companies will redeem such issues sooner rather than later to take advantage of low long-term interest rates. Some of the proceeds were directed into corporate bonds without such callable features and others with exposure to floating-not fixed-interest rates. 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 July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 8.21% 8.72% 7.83% $ 21,242 - -------------------------------------------------------------------------------- Class A Shares* 2.52% 7.17% 7.03% $ 19,731 - -------------------------------------------------------------------------------- Class B Shares** 2.16% 7.37% 7.02% $ 19,707 - -------------------------------------------------------------------------------- Class C Shares** 7.12% 7.58% 6.97% $ 19,623 - -------------------------------------------------------------------------------- Advisor Shares 7.70% 8.20% 7.55% $ 20,702 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Credit Bond Index (1) 3.88% 7.44% 6.79% $ 19,297 - -------------------------------------------------------------------------------- Lipper Flexible Income Funds Average (1) 2.86% 3.43% 2.83% $ 15,185 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Corporate Bond Equivalents 38.88% Corporate Bonds 24.05% Real Estate Investment Trusts 10.32% Investment Companies 8.48% Common Stocks 6.29% Preferred Stocks 4.64% Investments in Affiliates 2.42% U.S. Government Agencies 2.44% Foreign Bonds 1.24% U.S. Treasury Notes 1.24% + Portfolio composition is subject to change. 34 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Strategic Income Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Lehman Brothers Lipper Flexible Strategic Income Fund Intermediate Income Funds (Institutional Shares) Credit Bond Index Average 7/31/1995 10000 10000 10000 10231 10218 10104 Dec-95 10450 10644 10316 10608 10496 10534 10826 10546 10569 11099 10752 10766 Dec-96 11412 11066 10979 11655 11021 11032 12070 11404 11283 12492 11765 11589 Dec-97 12720 11991 11410 13015 12193 11588 13068 12436 11640 13054 12933 11815 Dec-98 13175 12985 11670 13087 12987 11582 13484 12881 11607 13052 12971 11492 Dec-99 12420 13006 11389 12945 13167 11605 13719 13358 11863 14125 13787 12063 Dec-00 14473 14237 12114 15261 14803 12825 15767 14952 12816 16033 15574 13042 1-Dec 16374 15628 13107 16590 15601 13147 17047 16097 13594 17384 16771 14135 2-Dec 17660 17212 14099 18012 17601 14195 18983 18308 14409 18861 18330 14351 3-Dec 19484 18402 14676 20217 18921 15030 19275 18388 14610 20218 19007 14967 4-Dec 20832 19153 15256 20371 18929 14949 21127 19452 15088 7/31/2005 21242 19297 15185 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Intermediate Credit Bond Index and the Lipper Flexible Income Funds Average. The Lehman Brothers Intermediate Credit Bond Index is generally representative of investment grade corporate bonds with maturities from one to ten years. The Lipper Flexible Income Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Credit Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Flexible Income Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The Ending Value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 35 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Select Stock Fund For the 12-month period ended July 31, 2005, the Fifth Third Select Stock Fund (renamed Fifth Third Dividend Growth Fund on August 1, 2005) (Institutional Shares) produced a total return of 13.66%, trailing its benchmark, the Russell 1000(R) Index, which advanced 16.20%. Despite climbing oil prices and short-term interest rates, the Fund's 20-30 holdings tended to fluctuate based on company specific developments and evolving industry trends during the period. + For example, investment bank Morgan Stanley lagged as it endured top level management changes and reported ineffectiveness in building synergies between its various business units. Meanwhile, Kinetic Concepts, a developer of wound treatments, contended with the overhang of a patent lawsuit and investor displeasure with the added expense of an enlarged sales force. In both situations, we believe the changes could ultimately prove beneficial and therefore warrant further patience. + Broader themes negatively affected plastic and metal component and fastener manufacturer Illinois Tool Works, which suffered in light of its exposure to the struggling automotive industry, and analog semiconductor chip developer Maxim Integrated Products, which lagged following reports of bloated chip inventories at key customers. + Positive performers included retailers Office Depot and Nordstrom. Office Depot benefited from a fresh start under CEO Steve Odland, who quickly went to work on improving fundamentals and shoring up the company's cost structure while sparking a solid increase in same-store sales. Serving higher- end consumers, Nordstrom appeared unaffected by heightened oil prices, which generally diminished sales at lower-end chains, and demonstrated improved operational efficiencies. + Within the healthcare industry, managed care plan provider WellPoint thrived after merging with fellow Blue Cross and Blue Shield licensee Anthem, which had also been a Fund holding. In general, health maintenance organizations and insurers enjoyed improving earnings characteristics as rising premiums outpaced medical cost increases. Henry Schein, a medical products distributor, performed well, too, as it recovered from a slump that coincided with last fall's well-publicized flu vaccine shortage. + Investment Risk Considerations - -------------------------------------------------------------------------------- Because the Fund may invest in a single industry, its shares do not represent a complete investment program. As a non-diversified Fund, the value of the shares may fluctuate more than shares invested in a broader range of industries and companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------- ------- --------- Institutional Shares 13.66% -10.14% 4.63% $ 15,718 - -------------------------------------------------------------------------------- Class A Shares* 7.72% -11.28% 3.92% $ 14,682 - -------------------------------------------------------------------------------- Class B Shares** 7.53% -11.19% 3.65% $ 14,317 - -------------------------------------------------------------------------------- Class C Shares** 12.55% -11.04% 3.65% $ 14,310 - -------------------------------------------------------------------------------- Russell 1000(R) Index (1) 16.20% -0.80% 10.17% $ 26,337 - -------------------------------------------------------------------------------- Russell 1000(R) Growth Index (1) 13.04% -8.72% 7.48% $ 20,564 - -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average (1) 12.60% -2.63% 8.20% $ 25,543 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + L-3 Communications Holdings, Inc. .......... 6.76% Teva Pharmaceutical Industries Ltd., ....... 6.33% EMC Corp. .................................. 6.21% Varian Medical Systems, Inc. ............... 5.65% Broadcom Corp., Class A. ................... 5.54% Best Buy Co., Inc. ......................... 4.96% Texas Instruments, Inc. .................... 4.80% Goldman Sachs Group, Inc. .................. 4.64% Kinetic Concepts, Inc. ..................... 4.32% Linear Technology Corp. .................... 4.20% + Portfolio composition is subject to change. 36 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Select Stock Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Select Stock Fund Russell (Institutional 1000(R) Russell 1000(R) Lipper Large-Cap Shares) Index Growth Index Core Funds Average 7/31/1995 10000 10000 10000 10000 10447 10490 10472 10379 Dec-95 11163 11074 10949 10636 11958 11685 11537 11194 12798 12161 12271 11663 13250 12558 12713 12008 Dec-96 13668 13560 13481 12749 13799 13770 13554 12678 16395 16085 16117 14583 17764 17489 17328 16156 Dec-97 18511 18015 17591 15913 21426 20424 20257 17866 21808 20934 21176 17998 19698 18776 19253 15567 Dec-98 24609 22883 24400 18977 25543 23827 25951 19704 26220 25524 26950 21386 24872 23839 25963 20119 Dec-99 27473 27668 32491 24053 28456 28876 34806 25843 27445 27885 33867 24901 26203 28084 32045 25265 Dec-00 22045 25513 25205 23634 17933 22308 19937 21003 18729 23715 21616 22468 15862 20103 17420 18813 1-Dec 17238 22337 20058 21240 16767 22502 19539 21378 14262 19474 15890 18678 11924 16180 13499 15587 2-Dec 12119 17501 14465 16709 11656 16986 14310 16139 12901 19659 16358 18914 12938 20248 16998 19604 3-Dec 14588 22732 18768 21982 15008 23164 18915 22605 15030 23489 19282 22819 13814 23064 18274 22234 4-Dec 15247 25324 19950 24546 14386 24841 19135 23991 14726 25351 19606 24507 7/31/2005 15718 26337 20564 25543 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Index, the Russell 1000(R) Growth Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Index measures the performance of the 1,000 largest companies in the Russell 3000(R) Index which represents approximately 92% of the total market capitalization of the Russell 3000(R) Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Index and the Russell 1000(R) Growth Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 37 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Technology Fund For the 12-month period ended July 31, 2005, the Fifth Third Technology Fund (Institutional Shares) produced a total return of 17.73%, compared to its benchmark, the Merrill Lynch 100 Technology Index, which returned 17.51%. During the first half of the period, robust economic activity fueled growing expectations for improved technology spending. Inventories within the sector expanded, which, combined with geopolitical concerns, higher interest rates and surging oil prices, eventually tempered investors' optimism. Companies then focused on working down the excess inventory levels, which contributed to improved sales and earnings levels through the final months of the period. However, outlooks remained somewhat muted as the Federal Reserve steadily boosted short-term interest rates. More specifically within the technology sector, investors rotated between industry groups, contributing to traditional volatility levels and uneven performance from quarter to quarter. One industry group that missed a turn among the sector's leaders was telecommunications equipment, which struggled in the face of intense competition, anemic increases in capital spending by telecom service providers and excess capacity. The industry group's lackluster performance weighed on the Fund's returns, but by the end of the period, there were signs of improvement within the long-suffering area. + Software and semiconductor stocks provided positive contributions, as did an underweight stake relative to the benchmark, in the e-commerce space. The software stocks rebounded modestly from low valuation levels while semiconductor-related stocks benefited from shrinking inventory levels, which generally precede periods of solid growth. + E-commerce stocks surged through the final months of 2004 but dropped significantly through the first half of 2005 as worries over sky high valuation relative to long-term growth prospects emerged. The Fund's aversion to such stocks was in keeping with its emphasis on companies possessing an optimal mix of potential near-term catalysts and a strong likelihood for sustained long-term growth. + Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund's value and its returns may be considerably more volatile and pose greater risks due to the nature of the technology sector (short product cycles, price competition, obsolescence of existing technology) than the values and returns of other mutual funds invested in a broader range of industries and companies. The Fund could fluctuate in price more than most funds, due to the volatile nature of the technology sector. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value (2) --------- ------- ------- --------- --------- Institutional Shares 6/5/00 17.73% -12.15% -12.50% $5,026 - -------------------------------------------------------------------------------- Class A Shares* 6/5/00 11.45% -13.27% -13.58% $4,713 - -------------------------------------------------------------------------------- Class B Shares** 6/5/00 11.46% -13.36% -13.50% $4,737 - -------------------------------------------------------------------------------- Class C Shares** 6/5/00 16.50% -13.04% -13.37% $4,774 - -------------------------------------------------------------------------------- Advisor Shares 6/5/00 16.95% -12.61% -12.95% $4,893 - -------------------------------------------------------------------------------- Merrill Lynch 100 Technology Index (1) 17.51% -15.04% -13.64% $4,687 - -------------------------------------------------------------------------------- Lipper Science and Technology Funds Average (1) 16.14% -17.01% -14.85% $4,650 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + Tellabs, Inc. ...................................... 3.49% Agilent Technologies, Inc. ......................... 3.41% Cadence Design Systems, Inc. ....................... 3.17% Vertex Pharmaceuticals, Inc. ....................... 2.86% Jabil Circuit, Inc. ................................ 2.80% Invitrogen Corp. ................................... 2.69% Broadcom Corp., Class A ............................ 2.68% Celgene Corp. ...................................... 2.57% NCR Corp. .......................................... 2.49% Micron Technology, Inc. ............................ 2.45% + Portfolio composition is subject to change. 38 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Technology Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Technology Fund Merrill Lynch Lipper Science (Institutional 100 Technology and Technology Shares) Index Funds Average 6/5/2000 10000 10000 10000 10185 11377 11563 9895 10948 11211 Dec-00 7413 6649 7343 4925 4655 5063 5743 5372 5653 3709 3176 3646 1-Dec 4951 4485 4815 4542 4351 4489 3058 3018 3320 2114 2069 2516 2-Dec 2871 2622 2910 2887 2617 2887 4073 3404 3555 4628 3821 3909 3-Dec 5405 4426 4388 5375 4491 4442 5026 4503 4441 4214 4002 4002 4-Dec 5031 4742 4624 4552 4355 4238 4703 4389 4382 7/31/2005 5026 4687 4650 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Merrill Lynch 100 Technology Index and the Lipper Science and Technology Funds Average. The Merrill Lynch 100 Technology Index is an equal-dollar weighted index of 100 stocks designed to measure the performance of a cross-section of large, actively traded technology stocks and American Depository Receipts. The Lipper Science and Technology Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Merrill Lynch 100 Technology Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Science and Technology Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2005. 39 MANAGEMENT DISCUSSION OF FUND PERFORMANCE International Equity Fund For the 12-month period ended July 31, 2005, the Fifth Third International Equity Fund (Institutional Shares) produced a total return of 17.99%, compared to its benchmark, the MSCI(R) EAFE Index, which gained 21.56%. With the exception of a broad sell-off in the spring, international equity markets moved consistently higher during the period. Non-Japanese Asian markets generated the strongest returns, collectively rising 37%, while European markets advanced 25% as a group. Japan posted a less inspiring 6% return. The Fund's underperformance stemmed in part from an overweight stake, relative to the benchmark, in Japan and an underweight position in Europe. + More specifically within Europe, performance was hindered by an overweight stake in Germany and an underweight stake in the United Kingdom. Underexposure to Italian stocks, which rallied 27% on heightened merger and acquisition activity, also hurt the Fund's returns. + From a sector standpoint, energy stocks paced the market, gaining 32%, followed by the materials group, which climbed 29%. The information technology sector offered the smallest return at 9%, although it rallied through the final months of the period. + During 2005, the global economy underwent a mid-cycle slowdown in the face of key lending rate increases by central banks, higher oil prices and some deterioration in business and consumer confidence. Global equity markets responded in a choppy fashion, enjoying a summertime recovery after enduring sharp declines between March and May. A sense that leading economic indicators had bottomed and firm reports from key business surveys supported the resurgence in optimism, although the interest rate outlook remained murky. As the slowdown didn't appear strong enough to derail the global economy and world equity markets, the Fund was fully invested throughout the period. Overweight positions in more cyclical areas such as Asia, energy and materials boosted performance. + With equity valuations reasonable, long-term bond yields low and central banks nearing the end of their rate-hike campaigns, we believe potential positives abound for international stocks, provided record high oil prices, interest rate uncertainty and potential spending fatigue among U.S. consumers fail to undermine any further uptick in sentiment. Investment Risk Considerations - -------------------------------------------------------------------------------- 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 July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 17.99% 0.75% 5.88% $17,705 - -------------------------------------------------------------------------------- Class A Shares* 11.92% -0.43% 5.20% $16,608 - -------------------------------------------------------------------------------- Class B Shares** 11.76% -0.42% 4.86% $16,077 - -------------------------------------------------------------------------------- Class C Shares** 16.83% -0.25% 4.97% $16,238 - -------------------------------------------------------------------------------- Advisor Shares 17.43% 0.34% 5.48% $17,046 - -------------------------------------------------------------------------------- MSCI(R) EAFE Index (1) 21.56% 1.30% 5.25% $16,675 - -------------------------------------------------------------------------------- Lipper International Large-Cap Core Funds Average (1) 19.28% -1.87% 5.15% $16,894 - ------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 5.00%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Top Ten Equity Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + BP PLC ............................................. 1.97% HSBC Holdings PLC .................................. 1.63% Vodaphone Airtouch PLC ............................. 1.42% Toyota Motor Corp. ................................. 1.33% Total SA ........................................... 1.31% Glaxosmithkline PLC ................................ 1.21% Royal Dutch Shell PLC, A Shares .................... 1.20% Novartis AG, Registered ............................ 1.06% Nestle ............................................. 1.03% Royal Dutch Shell PLC, B Shares .................... 0.91% + Portfolio composition is subject to change. 40 MANAGEMENT DISCUSSION OF FUND PERFORMANCE International Equity Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Lipper International International Equity MSCI(R) EAFE Large-Cap Core Fund (Institutional Shares) Index Funds Average 7/31/1995 10000 10000 10000 10081 9811 10011 Dec-95 10631 10216 10230 11099 10519 10679 11434 10694 11091 11292 10688 11065 Dec-96 11539 10866 11569 11539 10704 11727 13040 12101 13133 13095 12024 13342 Dec-97 12457 11090 12357 14413 12730 14177 14749 12873 14302 12997 11052 11974 Dec-98 14880 13345 14043 15065 13540 14351 15373 13893 15156 15939 14513 15745 Dec-99 18766 16988 19757 18323 16979 19992 17705 16317 19043 16536 15010 17429 Dec-00 16093 14617 16598 14274 12621 14238 14196 12511 14171 12750 10766 11981 1-Dec 13212 11517 13012 13417 11636 13146 13244 11359 12707 10866 9123 10118 2-Dec 11393 9714 10782 10443 8924 9834 12122 10670 11575 13010 11544 12343 3-Dec 15183 13518 14256 15425 14114 14772 15650 14176 14580 15425 14144 14513 4-Dec 17607 16316 16574 17410 16301 16436 17213 16178 16312 7/31/2005 17705 16675 16894 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Morgan Stanley Capital International(R) (MSCI) Europe, Australasia and Far East (EAFE) Index and the Lipper International Large-Cap Core Funds Average. The Morgan Stanley Capital International(R) (MSCI) Europe, Australasia and Far East (EAFE) Index is generally representative of a sample of companies of the market structure of 20 European and Pacific Basin countries. The Lipper International Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The MSCI(R) EAFE Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper International Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2005. 41 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Bond Fund (Institutional Shares) produced a total return of 4.43%, slightly trailing its benchmark, the Lehman Brothers Aggregate Bond Index, which advanced 4.79%. Although the Federal Reserve steadily increased short-term lending rates during the period-hiking its overnight rate 2.00% with eight quarter-point moves-yields on longer term issues generally fell. Such conditions sent many buyers, including a large number of foreign investors, scrambling for better yields, which propped up the corporate bond market. Such developments hindered the performance of the Fund, which held an underweight stake, relative to the benchmark, in corporate debentures. Yet by the period's close, exceedingly high valuations and a growing likelihood that some companies will make shareholder friendly moves-which rarely benefit bondholders-we believe made the group's fundamentals appear even shakier, and the Fund remained underweight. + The interest-rate picture helped keep mortgage rates low, which contributed to solid gains from mortgage backed securities and asset backed securities. The Fund especially benefited from home loan related holdings tied to hybrid adjustable rate mortgages holding 2- to 5-year terms, which were purchased during a momentary setback but proceeded to outperform the market. + The Fund also benefited modestly from a shorter-than-the-benchmark duration position, which helped reduce the impact of increasing short-term rates. By the period's end, the Fund's duration was closer to neutral, but still slightly shorter than the Index. + Elsewhere, the Fund held underweight stakes in Treasury issues and government agency debentures. A portion of the Treasury securities were inflation-indexed bonds, which helped offset the impact of any significant rise in inflation, while issues from agencies such as Fannie Mae, which buys and sells home mortgages, appeared fully valued. + Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 4.43% 6.36% 6.05% $18,000 - -------------------------------------------------------------------------------- Class A Shares* -0.78% 5.08% 5.31% $16,769 - -------------------------------------------------------------------------------- Class B Shares** -1.62% 4.97% 4.99% $16,279 - -------------------------------------------------------------------------------- Class C Shares** 3.37% 5.29% 4.99% $16,277 - -------------------------------------------------------------------------------- Advisor Shares 3.90% 5.84% 5.53% $17,130 - -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index (1) 4.79% 7.01% 6.75% $19,219 - -------------------------------------------------------------------------------- Lipper Corporate Debt Funds A Rated Average (1) 4.71% 6.49% 6.16% $18,221 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 4.75%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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, 1995, adjusted for the maximum sales charge. Class B and Class C Shares were initially offered on October 29, 2001. The performance figures for Class B and Class C Shares for periods prior to such date represent the performance for Institutional Shares and is adjusted to reflect expenses and applicable sales charges for Class B and Class C Shares. Advisor Shares were initially offered on October 29, 2001. The performance figures for Advisor Shares for periods prior to such date represent the performance for Institutional Shares and is adjusted to reflect expenses for Advisor Shares. During the period shown, the Advisor and/or affiliates waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance would have been lower. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Corporate Bonds 43.51% U.S. Government Agencies 35.77% Short-Term Securities Held as Collateral for Securities lending 6.96% Commercial Paper 6.21% U.S. Treasury Obligations 4.85% Money Markets 1.41% Foreign Bonds 1.29% + Portfolio composition is subject to change. 42 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Bond Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Lehman Brothers Lipper Corporate Bond Fund Aggregate Debt Funds (Institutional Shares) Bond Index A Rated Average 7/31/1995 10000 10000 10000 10272 10219 10253 Dec-95 10813 10655 10752 10421 10466 10455 10376 10525 10479 10544 10720 10663 Dec-96 10941 11041 11019 10701 10980 10909 11197 11383 11321 11708 11761 11736 Dec-97 12094 12107 12086 12281 12296 12263 12595 12583 12566 13141 13115 13015 Dec-98 13218 13159 13007 13011 13094 12874 12739 12979 12685 12731 13067 12710 Dec-99 12635 13051 12655 13021 13339 12951 13096 13571 13055 13516 13980 13426 Dec-00 14141 14568 13944 14612 15010 14390 14633 15095 14459 15400 15791 15028 1-Dec 15165 15798 15041 15010 15813 14994 15649 16397 15459 16389 17149 16115 2-Dec 16594 17419 16369 16811 17661 16621 17145 18103 17165 17092 18077 17104 3-Dec 17125 18134 17178 17536 18616 17641 17086 18161 17160 17598 18741 17715 4-Dec 17755 18920 17926 17704 18829 17855 18193 19396 18388 7/31/2005 18000 19219 18221 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Average. The Lehman Brothers Aggregate Bond Index is representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The Lipper Corporate Debt Funds A Rated Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Aggregate Bond Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Corporate Debt Funds A Rated Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2005. 43 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Intermediate Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Intermediate Bond Fund (Institutional Shares) produced a total return of 2.85%, narrowly trailing its benchmark, the Lehman Brothers Intermediate Government/Credit Bond Index, which gained 3.06%. Over the past year, the fixed income market bucked tradition during the period as longer-term rates declined while the Federal Reserve (the "Fed") steadily increased short-term lending rates. Similar Fed campaigns in the past usually led to higher long-term rates, reflecting concerns over robust economic conditions. Recently, however, beliefs that inflationary pressures were in check emboldened many bond investors to venture out on the longer end of the yield curve, which kept prices higher and yields subdued. Against this backdrop, intermediate bonds, perched between the active short-term and the improving long-term markets, tended to trade in a narrow range during the period. As a result, U.S. Treasury issues and government-backed agency securities offered minimal gains, and the Fund's small positions in both types of investments proved a modest drag on performance. + The Fund's duration position, which was slightly shorter than the benchmark in an effort to minimize the impact of the Fed's rate-hike efforts, also hindered returns. + To offset the lower yields provided by a short-duration strategy, the Fund built up positions in longer term notes to capture some of the price appreciation that occurred as rates eased. In addition, it held stakes in higher yielding high quality issues within the collateralized mortgage backed securities (CMBS) and mortgage-backed securities (MBS). + CMBS holdings linked to commercial buildings and housing facilities proved especially beneficial. In the MBS market, the Fund realized gains from securities holding whole loans - which are large home mortgages-although it generally avoided such debt originating in California. + Asset-backed securities from the automobile sector also boosted returns with higher yields than similarly rated corporate issues. + Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 2.85% 5.67% 5.45% $16,998 - -------------------------------------------------------------------------------- Class A Shares* -0.91% 4.67% 4.81% $16,001 - -------------------------------------------------------------------------------- Class B Shares** -2.34% 4.49% 4.48% $15,504 - -------------------------------------------------------------------------------- Class C Shares** 1.91% 4.61% 4.38% $15,350 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index (1) 3.06% 6.53% 6.26% $18,344 - -------------------------------------------------------------------------------- Lipper Intermediate Investment Grade Debt Funds Average (1) 4.36% 6.33% 5.94% $17,841 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 3.50%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Corporate Bonds 65.52% Short-Term Securities Held as Collateral for Securities Lending 12.25% Fannie Mae 6.43% Freddie Mac 5.95% Government National Mortgage Association 4.31% Federal Home Loan Bank 2.75% U.S. Treasury Obligations 2.62% Foreign Bonds 0.15% Money Markets 0.02% + Portfolio composition is subject to change. 44 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Intermediate Bond Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Lehman Brothers Lipper Intermediate Intermediate Bond Fund Intermediate Investment Grade (Institutional Shares) Government/Credit Index Debt Funds Average 7/31/1995 10000 10000 10000 10172 10164 10215 Dec-95 10520 10522 10647 10373 10434 10442 10397 10499 10479 10567 10686 10678 Dec-96 10836 10947 11002 10767 10935 10944 11117 11257 11327 11435 11561 11696 Dec-97 11680 11809 11977 11862 11993 12165 12087 12219 12423 12535 12767 12846 Dec-98 12574 12805 12872 12500 12781 12805 12363 12730 12652 12455 12848 12710 Dec-99 12420 12854 12690 12640 13048 12920 12803 13268 13064 13179 13650 13423 Dec-00 13630 14155 13926 14084 14635 14355 14185 14733 14403 14855 15411 15007 1-Dec 14766 15424 14975 14654 15389 14945 15178 15937 15350 15774 16658 15924 2-Dec 16038 16941 16198 16253 17196 16444 16609 17664 16897 16520 17660 16871 3-Dec 16482 17671 16947 16854 18108 17363 16409 17651 16935 16813 18129 17438 4-Dec 16900 18208 17616 16752 18050 17513 17144 18498 17974 7/31/2005 16998 18344 17841 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Intermediate Government/Credit Index and the Lipper Intermediate Investment Grade Debt Funds Average. The Lehman Brothers Intermediate Government/Credit Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury agencies. The debt issues within the index all maintain maturities within a range of one to ten years. The Lipper Intermediate Investment Grade Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Government/Credit Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Intermediate Investment Grade Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 45 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Short Term Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Short Term Bond Fund (Institutional Shares) produced a total return of 1.16%, trailing its benchmark, the Merrill Lynch 1-3 Year Government/Corporate Bond Index, which advanced 1.47%. Tied closely to the behavior of the Federal Reserve (the "Fed"), short-term bonds generally experienced rising yields and falling valuations as the central bank raised its key overnight rate from 1.25% to 3.25% during the period. The gradual nature of the increases-eight quarter-point moves-minimized any dramatic fallout as the markets generally followed a similarly steady upward path. The Fund's underexposure, relative to the benchmark, to lower quality bonds diminished returns, especially as industrial sector debentures outperformed. The Fund's underweight stake actually helped through the initial five months of the period, as the markets feared an economic slowdown. But through the second half of the period, those worries dissipated and contributed to a rally. As the second-half surge seemed as overdone as the first-half sell off, the Fund remained underweight at the period's close. + Furthermore, the Fund is generally biased toward higher quality issues and it finished the period skewed toward investment quality corporate bonds, where the risk-reward profiles were more appealing. + Just as high quality corporate issues-especially within the heavily regulated financial sector-enhanced returns, so, too, did issues related to the real estate market, which continued to thrive amid historically low lending rates. Stakes in asset backed securities tied to home equity loans proved beneficial, as did mortgage backed securities composed of 3-, 5- and 7-year term hybrid adjustable rate mortgages. + Also contributing positively was an assortment of holdings within the commercial mortgage backed security sector, which finance non-residential real estate projects, and a shorter-than-the-benchmark duration position. Installed to mitigate the impact of the Fed's actions, the strategy provided a definite benefit as the central bank kept pushing rates higher. + Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- ---------- Institutional Shares 1.16% 4.09% 4.68% $ 15,799 - -------------------------------------------------------------------------------- Class A Shares* -2.56% 3.20% 4.15% $ 15,020 - -------------------------------------------------------------------------------- Class C Shares** 0.23% 3.07% 3.64% $ 14,304 - -------------------------------------------------------------------------------- Merrill Lynch 1-3 Year Government/Corporate Bond Index (1) 1.47% 4.71% 5.29% $ 16,750 - -------------------------------------------------------------------------------- Lipper Short Investment Grade Debt Funds Average (1) 1.76% 4.07% 4.77% $ 15,942 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 3.50%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. For the period prior to October 29, 2001, the quoted performance for the Fifth Third Short Term Bond Fund Institutional Shares reflects the performance of the Kent Short Term Bond Fund Institutional Shares with an inception date of November 2, 1992. Prior to October 29, 2001, the performance for the Fifth Third Short Term Bond Fund Class A Shares reflects the performance of the Kent Short Term Bond Fund Investment Shares with an inception date of December 4, 1992, adjusted for the maximum sales charge. Class C shares were initially offered on August 1, 2003. The performance figures for Class C Shares for the periods prior to such date represent the performance for Institutional Shares and is adjusted to reflect expenses and applicable sales charges for Class C Shares. During the period shown, the Advisor and/or affiliates waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance would have been lower. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Corporate Bonds 53.14% U.S. Government Agencies 24.70% Short-Term Securities Held as Collateral for Securities Lending 10.23% U.S. Treasury Obligations 8.99% Money Markets 2.13% Foreign Bonds 0.54% Municipal Bonds 0.27% + Portfolio composition is subject to change. 46 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Short Term Bond Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Merrill Lynch 1-3 Year Lipper Short Short Term Bond Fund Government/Corporate Investment Grade (Institutional Shares) Bond Index Debt Funds Average 7/31/1995 10000 10000 10000 10101 10108 10126 Dec-95 10359 10362 10381 10357 10402 10396 10439 10509 10489 10601 10684 10661 Dec-96 10795 10888 10870 10827 10964 10939 11074 11207 11173 11300 11428 11398 Dec-97 11488 11617 11559 11643 11792 11723 11803 11975 11896 12098 12331 12184 Dec-98 12193 12431 12247 12273 12521 12350 12301 12595 12386 12441 12748 12513 Dec-99 12498 12836 12599 12641 12995 12750 12850 13214 12945 13159 13511 13231 Dec-00 13513 13871 13540 13896 14274 13926 14050 14460 14094 14498 14962 14521 1-Dec 14581 15080 14555 14517 15082 14571 14817 15446 14826 15120 15811 15093 2-Dec 15286 15999 15236 15414 16137 15374 15533 16315 15549 15597 16396 15584 3-Dec 15596 16438 15617 15734 16622 15790 15564 16435 15622 15699 16621 15794 4-Dec 15711 16637 15834 15671 16590 15796 15852 16795 15975 7/31/2005 15799 16750 15942 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Merrill Lynch 1-3 Year Government/Corporate Bond Index and the Lipper Short Investment Grade Debt Funds Average. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is composed of U.S. Treasury issues and publicly issued debt of U.S. Government agencies with maturities of one to three years. The Lipper Short Investment Grade Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Short Investment Grade Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 47 MANAGEMENT DISCUSSION OF FUND PERFORMANCE U.S. Government Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third U.S. Government Bond Fund (Institutional Shares) produced a total return of 2.39%, narrowly lagging its benchmark, the Lehman Brothers Intermediate Government Bond Index, which returned 2.51%. The Treasury yield curve flattened considerably during the period as the Federal Reserve (the "Fed") engaged in a slow-but-steady rate increase campaign at the short end and heightened demand kept prices high-and yields low-at the long end. The Fed's efforts resulted in a 2.00% increase in its key overnight lending rate, while the constant buying pressure at the other end of the spectrum drove yields on 10-year Treasuries lower. Expectations that inflation would gradually increase during the period proved incorrect as pricing data remained relatively tame. The development weighed on inflation-indexed Treasury securities, which, in turn, hurt the Fund's performance. The Fund first established a position as the inflation-sensitive bonds sold off to reach reasonable valuations, but a continued sell off hampered returns. + The Fund maintains a high quality focus and frequently seeks to enhance performance with higher yielding structured mortgage-related securities. These solidly rated issues tend to reduce risk while providing above-benchmark yields. + Z-bonds, a class of mortgage-backed security issues that aren't paid off until all other classes are redeemed, benefited from an acceleration of prepayment trends in the residential mortgage market. Such developments, which occur when refinancing activity is healthy, infuse the Z-bond issues with added principal, which boosts their value. Elsewhere, the Fund's stake in government-sponsored agency debt from mortgage backer Fannie Mae profited despite the consistently strong residential refinancing activity, which generally detracts from the value of its bonds. Although Fannie Mae itself has reduced its issuance, as it's been ordered to increase its capital reserve, foreign demand for mortgage-backed debt helped prop up the entire mortgage backed market. + Investment Risk Considerations - -------------------------------------------------------------------------------- U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the funds shares. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 2.39% 5.27% 5.14% $ 16,510 - -------------------------------------------------------------------------------- Class A Shares* -2.76% 4.00% 4.46% $ 15,476 - -------------------------------------------------------------------------------- Class C Shares** 1.39% 4.23% 4.19% $ 15,070 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government Bond Index (1) 2.51% 5.86% 5.91% $ 17,751 - -------------------------------------------------------------------------------- Lipper Short-Intermediate U.S. Government Bond Funds Average (1) 1.79% 4.83% 5.07% $ 16,389 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 4.75%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Fund Holdings as of July 31, 2005 - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] Fannie Mae 33.00% Freddie Mac 22.84% Government National Mortgage Association 13.56% Federal Home Loan Bank 10.41% U.S. Treasury Obligations 8.49% Financing Corp. 7.19% Tennessee Valley Authority 1.62% Federal Farm Credit Bank 1.46% Money Markets 1.43% + Portfolio composition is subject to change. 48 MANAGEMENT DISCUSSION OF FUND PERFORMANCE U.S. Government Bond Fund GROWTH OF A $10,000 INVESTMENT Lipper Fifth Third U.S. Lehman Brothers Short-Intermediate Government Bond Fund Intermediate U.S. Government (Institutional Shares) Government Bond Index Bond Funds Average 7/31/1995 10000 10000 10000 10142 10150 10140 Dec-95 10452 10489 10446 10307 10418 10386 10339 10488 10437 10509 10668 10603 Dec-96 10708 10915 10828 10696 10912 10849 10973 11216 11112 11245 11503 11362 Dec-97 11472 11758 11573 11647 11936 11725 11837 12156 11907 12329 12724 12322 Dec-98 12333 12756 12359 12293 12721 12372 12238 12695 12312 12353 12824 12415 Dec-99 12355 12818 12445 12494 13028 12604 12695 13264 12803 13050 13620 13119 Dec-00 13526 14160 13549 13915 14585 13908 13947 14646 13992 14621 15373 14611 1-Dec 14562 15352 14580 14481 15312 14593 15014 15903 15071 15704 16670 15623 2-Dec 15840 16832 15771 15987 16988 15896 16202 17275 16088 16114 17252 16028 3-Dec 16077 17217 16012 16382 17597 16283 16014 17192 15966 16326 17580 16255 4-Dec 16398 17619 16305 16300 17499 16211 16649 17903 16500 7/31/2005 16510 17751 16389 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Intermediate Government Bond Index and the Lipper Short-Intermediate U.S. Government Bond Funds Average. The Lehman Brothers Intermediate Government Bond Index is generally representative of intermediate-term government bonds. The Lipper Short-Intermediate U.S. Government Bond Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Government Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Short-Intermediate U.S. Government Bond Funds Average and the Fund's performance reflect the deduction for fees for these value-added services Investors cannot invest directly in an index, although they can invest in the underlying securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 49 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Municipal Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Municipal Bond Fund (Institutional Shares) produced a total return of 4.53%, lagging its benchmark, the Lehman Brothers Municipal Bond Index, which returned 6.35%. Shadowing the U.S. Treasury market, where the Federal Reserve steadily increased its overnight lending rate and heavy demand pulled down long-term yields, short-term municipal bond interest rates climbed and long-term yields dropped during the period. Such a flattening of the yield curve proved perplexing to many observers, including Federal Reserve Chairman Alan Greenspan, and seemed to indicate lingering concerns over the economy's growth prospects. As the Fund's duration was positioned shorter than the benchmark, which helped buffer the effect of rising short-term rates, the yield curve's flattening hurt performance. + Also diminishing returns, relative to the benchmark, was the Fund's complete avoidance of bonds tied to the tobacco industry's 1998 nationwide settlement. Sold by states and municipalities, these debentures are financed by the future payments from cigarette makers. Essentially ignored for the past two years, the market's recent scramble for yield raised the profile of the issues, which represent a small portion of the benchmark but rallied significantly during the period. Possessing volatile tendencies and low quality characteristics, the bonds were never seriously considered for the quality conscious Fund. + The high quality orientation weighed elsewhere as higher yielding, riskier issues tended to attract new investors to the municipal bond space. These especially proved appealing to hedge funds and other non-traditional market participants who appear to be establishing a permanent presence among classic municipal bond holders such as insurance companies and individual investors. Providing a lift was a collection of bonds that were pre-refunded as issuers determined it would be profitable to refinance the generally high quality securities. The Fund benefited from the resulting jump in prices on the refurbished securities, which were all long-term holdings. + Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 4.53% 5.78% 5.51% $ 17,105 - -------------------------------------------------------------------------------- Class A Shares* -0.61% 4.51% 4.73% $ 15,869 - -------------------------------------------------------------------------------- Class B Shares** -1.34% 4.38% 4.45% $ 15,457 - -------------------------------------------------------------------------------- Class C Shares** 3.45% 4.72% 4.46% $ 15,465 - -------------------------------------------------------------------------------- Advisor Shares 4.01% 5.27% 4.99% $ 16,280 - -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index (1) 6.35% 6.48% 6.23% $ 18,302 - -------------------------------------------------------------------------------- Lipper General Municipal Debt Funds Average (1) 5.57% 5.62% 5.29% $ 16,778 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 4.75%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Bond Quality Ratings as of July 31, 2005 as represented by Standard and Poor's Rating Agency - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] AAA 65.57% AA 28.55% BBB 4.89% A 0.99% + Portfolio composition is subject to change. 50 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Municipal Bond Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Municipal Lipper General Bond Fund Lehman Brothers Municipal Municipal Debt (Institutional Shares) Bond Index Funds Average 7/31/1995 10000 10000 10000 10186 10191 10167 Dec-95 10559 10612 10640 10465 10484 10449 10491 10564 10504 10681 10806 10745 Dec-96 10971 11082 11001 10901 11055 10950 11277 11436 11332 11604 11781 11682 Dec-97 11913 12100 12012 12003 12240 12126 12152 12426 12285 12567 12807 12643 Dec-98 12594 12884 12650 12651 12998 12710 12368 12769 12424 12310 12718 12250 Dec-99 12183 12619 12056 12572 12988 12398 12742 13185 12533 13041 13503 12823 Dec-00 13693 14094 13376 13948 14407 13634 14002 14500 13694 14369 14907 14047 1-Dec 14250 14816 13887 14383 14956 13995 14923 15503 14463 15655 16239 15090 2-Dec 15625 16239 15035 15789 16434 15132 16195 16858 15543 16176 16872 15538 3-Dec 16357 17102 15772 16583 17398 16005 16156 16986 15637 16728 17648 16202 4-Dec 16860 17868 16403 16789 17862 16382 17207 18385 16830 7/31/2005 17105 18302 16778 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Municipal Bond Index and the Lipper General Municipal Debt Funds Average. The Lehman Brothers Municipal Bond Index is generally representative of the municipal bond market. The Lipper General Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Municipal Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper General Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2005. 51 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Intermediate Municipal Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Intermediate Municipal Bond Fund (Institutional Shares) produced a total return of 2.83%, compared to its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index which gained 2.61%. Shadowing the U.S. Treasury market, where the Federal Reserve steadily increased its overnight lending rate and heavy demand pulled down long-term yields, short-term municipal bond interest rates climbed and long-term yields dropped during the period. Such a flattening of the yield curve proved perplexing to many observers, including Federal Reserve Chairman Alan Greenspan, and seemed to indicate a significant amount of angst over the economy's growth prospects. Such conditions can have varying effects on intermediate term bonds, but during the period, 3- and 5-year yields advanced. This proved ideal for the Fund, which held a duration position which was shorter than both of its benchmarks. As a result, the strategy, which helped buffer the effect of rising short-term rates, enhanced returns. + Further boosting performance was the Fund's stake in put bonds, which provide the bondholder with the right to redeem notes prior to the maturity date. Offering better yields with solid quality characteristics, such bonds generally added to the Fund's performance, especially those with 5- or 10-year terms. + The Fund also benefited from an assortment of alternative minimum tax (AMT)-eligible issues, which tend to offer more yield to compensate for potential AMT exposure and the uncertainty surrounding the future of the AMT-eligible issues.+ Modestly hindering returns was a limited exposure to longer-term issues such as 10-year bonds, which enjoyed solid price appreciation, and an absence from the low quality high yield arena, where demand remained high. + Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 2.83% 4.64% 4.65% $ 15,749 - -------------------------------------------------------------------------------- Class A Shares* -1.13% 3.62% 4.02% $ 14,825 - -------------------------------------------------------------------------------- Class B Shares** -2.36% 3.47% 3.70% $ 14,375 - -------------------------------------------------------------------------------- Class C Shares** 1.76% 3.60% 3.59% $ 14,229 - -------------------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index (1) 2.61% 5.37% 5.32% $ 16,829 - -------------------------------------------------------------------------------- Lipper Intermediate Municipal Debt Funds Average (1) 3.44% 5.02% 4.92% $ 16,179 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 3.50%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Bond Quality Ratings as of July 31, 2005 as represented by Standard and Poor's Rating Agency - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] AAA 65.85% AA 18.70% BBB 7.96% A 5.50% Net Cash & Equivalents 1.47% Not Rated 0.52% + Portfolio composition is subject to change. 52 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Intermediate Municipal Bond Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Intermediate Lehman Brothers Lipper Intermediate Municipal Bond Fund Quality Intermediate Municipal Debt Funds (Institutional Shares) Municipal Bond Index Average 7/31/1995 10000 10000 10000 10152 10152 10153 Dec-95 10408 10401 10442 10332 10376 10378 10366 10421 10427 10522 10598 10619 Dec-96 10763 10844 10844 10735 10845 10843 11022 11133 11130 11289 11407 11396 Dec-97 11523 11637 11645 11623 11760 11754 11735 11906 11900 12073 12241 12231 Dec-98 12141 12335 12297 12201 12443 12362 12003 12266 12151 12037 12369 12147 Dec-99 12018 12371 12106 12259 12568 12320 12423 12761 12472 12661 13029 12732 Dec-00 13098 13439 13162 13388 13782 13452 13486 13889 13533 13832 14270 13883 1-Dec 13718 14179 13766 13812 14303 13873 14303 14855 14368 14812 15449 14959 2-Dec 14848 15488 14966 14988 15660 15100 15251 16016 15435 15282 16096 15454 3-Dec 15333 16207 15599 15485 16416 15772 15172 16071 15453 15584 16586 15908 4-Dec 15649 16697 16023 15513 16548 15893 15841 16937 16266 7/31/2005 15749 16829 16179 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index and the Lipper Intermediate Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lipper Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 53 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Ohio Municipal Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Ohio Municipal Bond Fund (Institutional Shares) produced a total return of 2.61%, compared to its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which also gained 2.61%. Generally speaking, Ohio maintained its solid credit profile during the period. Although cities in the industrial north such as Toledo and Cleveland were exposed to the struggling automotive industry, more diversified communities such as Columbus and Cincinnati helped weather these challenges. State-issued Ohio Housing Authority bonds boosted performance. These securities are subject to the alternative minimum tax (AMT), a factor that enhanced yield without forfeiting much in quality. As yield curves across the fixed income universe flattened-short term rates followed the Federal Reserve's steady rate hike efforts while heightened demand propped up prices and shrank yields at the long end-it appeared as though many observers were uncertain about the economy's growth prospects. Such conditions can have varying effects on intermediate term bonds, but during the period, yields advanced on issues with terms up to 5 years. This proved ideal for the Fund, whose duration position was shorter than both benchmarks. As a result, the strategy, which helped buffer the effect of rising short-term rates, enhanced returns. + Further boosting performance was the Fund's stake in put bonds, which provide the bondholder with the right to redeem notes prior to the maturity date. Offering better yields with solid quality characteristics, such bonds generally added to the Fund's performance, especially those with 5- or 10-year terms. + Modestly hindering returns was the Fund's small exposure relative to its Index to longer-term issues such as 10-year bonds, which enjoyed solid price appreciation, and an absence from the low quality high yield arena, where demand remained high. + Investment Risk Considerations - -------------------------------------------------------------------------------- The fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Single state funds may be subject to additional risk, since issuers they invest in are more likely to be subject to the same political and/or economic risks. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 2.61% 4.59% 4.39% $15,371 - -------------------------------------------------------------------------------- Class A Shares* -2.52% 3.31% 3.71% $14,393 - -------------------------------------------------------------------------------- Class B Shares** -3.27% 2.92% 3.31% $13,843 - -------------------------------------------------------------------------------- Class C Shares** 1.60% 3.56% 3.47% $14,063 - -------------------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index (1) 2.61% 5.37% 5.32% $16,829 - -------------------------------------------------------------------------------- Lipper Ohio Intermediate Municipal Debt Funds Average (1) 2.34% 4.33% 4.36% $15,332 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 4.75%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Bond Quality Ratings as of July 31, 2005 as represented by Standard and Poor's Rating Agency - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] AAA 48.02% AA 32.47% A 9.79% BBB 9.72% + Portfolio composition is subject to change. 54 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Ohio Municipal Bond Fund GROWTH OF A $10,000 INVESTMENT Fifth Third Ohio Lehman Brothers Lipper Ohio Municipal Bond Quality Intermediate Intermediate Fund (Institutional Municipal Bond Municipal Debt Shares) Index Funds Average 7/31/1995 10000 10000 10000 10112 10152 10155 Dec-95 10368 10401 10419 10324 10376 10355 10336 10421 10394 10483 10598 10568 Dec-96 10729 10844 10795 10680 10845 10774 10979 11133 11045 11230 11407 11294 Dec-97 11471 11637 11524 11544 11760 11616 11679 11906 11755 12058 12241 12071 Dec-98 12115 12335 12118 12140 12443 12172 11863 12266 11936 11835 12369 11919 Dec-99 11759 12371 11869 12008 12568 12067 12142 12761 12203 12381 13029 12445 Dec-00 12802 13439 12848 13074 13782 13101 13155 13889 13160 13479 14270 13480 1-Dec 13387 14179 13355 13454 14303 13457 13920 14855 13925 14419 15449 14456 2-Dec 14437 15488 14456 14566 15660 14586 14842 16016 14862 14884 16096 14867 3-Dec 14991 16207 14967 15140 16416 15108 14811 16071 14801 15222 16586 15203 4-Dec 15288 16697 15261 15157 16548 15141 15479 16937 15422 7/31/2005 15371 16829 15332 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index and the Lipper Ohio Intermediate Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lipper Ohio Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Ohio Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 55 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Michigan Municipal Bond Fund For the 12-month period ended July 31, 2005, the Fifth Third Michigan Municipal Bond Fund (Institutional Shares) produced a total return of 1.49%, outperforming its benchmark, the Lehman Brothers 1-5 year Municipal Bond Index, which gained 1.25%. Weakening fundamentals in the automobile industry weighed heavily on Michigan's economy during the period-enough so that the major credit rating agencies downgraded the State's ratings. Since the market had anticipated such a move, however, the impact was relatively minor. While the issuance of municipal bonds nationwide was running at record levels through the first seven months of 2005, Michigan's new supply essentially matched historical volumes. The traditionally cyclical nature of the State's new issue calendar also continued, and the alternating periods of heightened activity and calm contributed to volatile yields, although demand remained relatively static. The Fund's outperformance stemmed primarily from its short duration, relative to the benchmark. The tactic is designed to minimize the effect of rising short-term interest rates and as the municipal market generally followed the Federal Reserve's steady rate hike campaign, it paid off. + Since a shorter duration strategy normally features smaller than-average yields, the Fund built up its exposure to better yielding issues to compensate. Without giving up much in the way of quality, the Fund benefited from increased stakes in some rural hospital issues and bonds subject to the alternative minimum tax. + The Fund maintains a higher quality focus, which proved a modest drag on performance during the period as lower quality issues rallied. + Investment Risk Considerations - -------------------------------------------------------------------------------- The fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Single state funds may be subject to additional risk, since issuers they invest in are more likely to be subject to the same political and/or economic risks. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Average Annual Total Returns as of July 31, 2005 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value (2) ------ ------ ------- --------- Institutional Shares 1.49% 3.69% 3.86% $14,602 - -------------------------------------------------------------------------------- Class A Shares* -3.51% 2.53% 3.21% $13,716 - -------------------------------------------------------------------------------- Class B Shares** -4.47% 2.29% 2.82% $13,206 - -------------------------------------------------------------------------------- Class C Shares** 0.43% 2.65% 2.82% $13,205 - -------------------------------------------------------------------------------- Lehman Brothers 1-5 Year Municipal Bond Index (1) 1.25% 4.25% 4.47% $15,551 - -------------------------------------------------------------------------------- Lipper Other States Short- Intermediate Municipal Debt Funds Average (1) 3.10% 4.37% 4.19% $15,096 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.53.com. * Reflects the maximum sales charge of 4.75%. ** Reflects the maximum applicable contingent deferred sales charge of 5.00%. 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. Bond Quality Ratings as of July 31, 2005 as represented by Standard and Poor's Rating Agency - -------------------------------------------------------------------------------- as a percentage of value of investments + [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.] AAA 60.54% AA 21.58% A 12.33% BBB 5.13% Not Rated 0.42% + Portfolio composition is subject to change. 56 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Michigan Municipal Bond Fund GROWTH OF A $10,000 INVESTMENT Lipper Fifth Third Other States Michigan Lehman Short- Municipal Brothers Intermediate Bond Fund 1-5 Year Municipal (Institutional Municipal Debt Funds Shares) Bond Index Average 7/31/1995 10000 10000 10000 10099 10109 10129 Dec-95 10267 10288 10305 10267 10319 10304 10333 10390 10392 10466 10542 10551 Dec-96 10628 10732 10709 10628 10757 10740 10845 10980 10944 11044 11185 11163 Dec-97 11214 11353 11339 11315 11478 11445 11418 11605 11565 11657 11856 11795 Dec-98 11747 11965 11890 11841 12094 11961 11738 12021 11880 11809 12137 11905 Dec-99 11825 12169 11929 11950 12303 12074 12089 12477 12175 12291 12685 12380 Dec-00 12571 12964 12668 12866 13295 12925 12981 13448 13024 13261 13759 13271 1-Dec 13260 13771 13300 13326 13845 13401 13709 14279 13717 13994 14625 14111 2-Dec 14083 14746 14175 14205 14874 14295 14347 15046 14479 14445 15189 14585 3-Dec 14415 15191 14652 14500 15342 14798 14300 15126 14535 14538 15437 14881 4-Dec 14570 15501 14967 14468 15381 14899 14642 15599 15142 7/31/2005 14602 15551 15096 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.53.com. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers 1-5 Year Municipal Bond Index and the Lipper Other States Short-Intermediate Municipal Debt Funds Average. The Lehman Brothers 1-5 Year Municipal Bond Index is representative of short term municipal bonds with a maturity between one and six years. The Lipper Other States Short-Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers 1-5 Year Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Other States Short-Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2005. 57 This page intentionally left blank. Small Cap Growth Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (97.3%) A.S.V., Inc. * (g) 96,000 $ 4,603 Affiliated Managers Group, Inc. * (g) 41,400 2,952 Akamai Technologies, Inc. * (g) 252,000 3,848 American Medical Systems Holdings, Inc. * 227,700 5,294 aQuantive, Inc. * (g) 230,300 4,344 ArthroCare Corp. * (g) 72,000 2,633 Avid Technology, Inc. * (g) 41,417 1,704 Benchmark Electronics, Inc. * 95,000 3,040 Bucyrus International, Inc. 75,000 3,197 CARBO Ceramics, Inc. 32,056 2,785 Carpenter Technology Corp. (g) 35,000 2,192 Cash Systems, Inc. * (g) 258,622 2,121 Centene Corp. * (g) 120,500 3,531 Central Garden & Pet Co. * (g) 77,900 3,908 Children's Place Retail Stores, Inc. * 92,600 4,232 CKE Restaurants, Inc. (g) 240,000 3,110 Coherent, Inc. * 62,750 2,136 Core Laboratories N.V. * 91,265 2,939 Denbury Resources, Inc. * 70,000 3,276 East-West Bancorp., Inc. 67,734 2,336 Engineered Support Systems, Inc. 108,675 4,019 Epicor Software Corp. * 275,900 4,092 ev3, Inc. * 151,500 2,939 F5 Networks, Inc. * (g) 57,000 2,404 First Cash Financial Services, Inc. * 174,700 4,167 FormFactor, Inc. * 121,800 3,184 GEN-Probe, Inc. * 59,000 2,601 General Cable Corp. * (g) 330,000 5,478 Grey Wolf, Inc. * (g) 540,000 4,142 Headwaters, Inc. * (g) 60,000 2,565 HealthExtras, Inc. * 145,000 2,884 Hibbet Sporting Goods, Inc. * 108,200 4,331 Hub Group, Inc., Class A * 95,000 2,943 Immucor, Inc. * (g) 60,000 1,648 Jarden Corp. * (g) 96,900 3,717 Kanbay International Inc. * (g) 141,000 3,125 Labor Ready, Inc. * 208,244 4,937 MGI Pharma, Inc. * (g) 145,000 3,958 Navigant Consulting, Inc. * 125,278 2,506 Openwave Systems, Inc. * (g) 217,400 4,033 OraSure Technologies, Inc. * 364,000 3,924 Parametric Technology Corp. * (g) 635,000 4,381 Psychiatric Solutions, Inc. * 82,000 3,950 Quiksilver, Inc. * (g) 210,000 3,526 Range Resources Corp. 94,000 2,871 RC2 Corp. * 104,028 4,245 Respironics, Inc. * 97,646 3,701 Salesforce.com, Inc. * (g) 110,400 2,600 Scientific Games Corp., Class A * 95,000 2,601 Serologicals Corp. * (g) 100,850 2,320 SFBC International, Inc. * 76,600 3,082 SI International, Inc. * 120,000 3,781 Stage Stores, Inc. * 63,951 2,825 Stein Mart, Inc. (g) 100,000 2,269 Sterling Financial Corp. * (g) 56,000 2,186 Superior Energy Services, Inc. * 162,000 3,457 Continued Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Sybron Dental Specialites, Inc. * (g) 90,000 $ 3,308 Symmetricom, Inc. * 275,000 2,877 TBS International, Ltd.,A Shares * (g) 259,790 2,686 Texas Industries, Inc. 37,000 2,724 Trimble Navigation Ltd. * (g) 95,000 3,701 Tsakos Energy Navigation Ltd. 62,100 2,403 UbiquiTel, Inc. * (g) 325,000 2,970 United Natural Foods, Inc. * (g) 77,780 2,623 United Surgical Partners International, Inc. * 67,425 2,428 Varian Semiconductor Equipment Associates, Inc. * (g) 70,000 2,906 VCA Antech, Inc. * 133,778 3,176 Ventiv Health, Inc. * 100,000 2,200 WCI Communities, Inc. * (g) 147,000 4,992 Wintrust Financial Corp. 43,400 2,328 Witness Systems, Inc. * 176,000 3,434 Zenith National Insurance Corp. 47,500 3,308 ------------ Total Common Stocks 233,637 ------------ Treasury Bills (0.2%) 2.99%, 9/22/05 **(a) $ 500 498 ------------ Total Treasury Bills 498 ------------ Investments in Affiliates (2.2%) Fifth Third Institutional Money Market Fund 5,370,789 5,371 ------------ Total Investments in Affiliates 5,371 ------------ Short-Term Securities Held as Collateral for Securities Lending (27.2%) Pool of various securities for Fifth Third Funds $ 65,350 65,350 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 65,350 ------------ Total Investments (Cost $243,213)+ - 126.9% 304,856 Liabilities in excess of other assets - (26.9)% (64,632) ------------ NET ASSETS - 100.0% $ 240,224 ============ See notes to schedules of portfolio investments and notes to financial statements. 59 Mid Cap Growth Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (96.1%) A.G. Edwards, Inc. 81,700 $ 3,619 Abercrombie & Fitch Co. 84,000 6,052 Advance Auto Parts, Inc. * (g) 160,800 11,089 Alliance Data Systems Corp. * (g) 142,900 6,083 American Capital Strategies Ltd. (g) 153,100 5,761 American Medical Systems Holdings, Inc. * (g) 440,300 10,237 Autodesk, Inc. 171,000 5,846 Avid Technology, Inc. * (g) 88,000 3,621 Biomet, Inc. 134,000 5,109 Burlington Resources, Inc. 135,300 8,674 CACI International, Inc., Class A * (g) 139,100 9,151 Caremark Rx, Inc. * 234,800 10,467 Charles River Laboratories International, Inc. * 132,700 6,462 Chico's FAS, Inc. * (g) 256,500 10,288 CNET Networks, Inc. * 484,900 6,207 Cognizant Technology Solutions Corp., Class A * 142,900 7,014 Corporate Executive Board Co. (g) 104,600 8,439 Covance, Inc. * 185,000 9,167 Cytyc Corp. * (g) 362,400 9,046 D. R. Horton, Inc. 309,600 12,719 Education Management Corp. * 153,100 5,320 Engineered Support Systems, Inc. 133,950 4,953 Fastenal Co. (g) 82,900 5,442 Fidelity National Financial, Inc. 177,400 6,990 Fiserv, Inc. * (g) 94,400 4,189 Fisher Scientific International, Inc. * (g) 136,500 9,152 GEN-Probe, Inc. * (g) 111,100 4,898 Gilead Sciences, Inc. * 223,300 10,006 GlobalSantaFe Corp. (g) 182,500 8,211 Hughes Supply, Inc. 237,400 6,746 International Rectifier Corp. * (g) 163,300 7,683 ITT Industries, Inc. (g) 68,900 7,331 Jabil Circuit, Inc. * 301,200 9,395 Joy Global, Inc. (g) 208,000 8,543 Laureate Education, Inc. * 200,800 9,097 Lennar Corp., Class A (g) 107,200 7,211 Manpower, Inc. 84,200 4,025 Michael's Stores, Inc. (g) 219,500 9,000 Nabors Industries Ltd. * 150,100 9,824 National-Oilwell Varco, Inc. * 151,900 7,952 Network Appliance, Inc. * 125,100 3,191 Nextel Partners Inc., Class A * (g) 395,600 9,850 North Fork Bancorp 179,900 4,927 Polo Ralph Lauren 196,500 9,676 Respironics, Inc. * 58,456 2,215 Scientific Games Corp., Class A * 174,800 4,786 Scientific-Atlanta, Inc. 158,200 6,091 Station Casinos, Inc. 89,300 6,559 Stericycle, Inc. * (g) 81,700 4,748 T. Rowe Price Group, Inc. 130,200 8,639 Tempur-Pedic International, Inc. * (g) 298,600 5,139 Thermo Electron Corp. * 199,100 5,945 Ultra Petroleum Corp. * 265,300 10,061 Continued Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Urban Outfitters, Inc. * (g) 107,200 $ 6,508 Varian, Inc. * 39,800 1,491 Varian Medical Systems, Inc. * 173,600 6,816 VeriSign, Inc. * 324,600 8,540 WESCO International, Inc. * (g) 190,100 6,475 Williams-Sonoma, Inc. * (g) 159,500 7,044 XTO Energy, Inc. 210,800 7,397 ------------ Total Common Stocks 427,117 ------------ Investments in Affiliates (6.0%) Fifth Third Institutional Money Market Fund 26,729,509 26,730 ------------ Total Investments in Affiliates 26,730 ------------ Short-Term Securities Held as Collateral for Securities Lending (21.4%) Pool of various securities for Fifth Third Funds $ 95,287 95,287 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 95,287 ------------ Total Investments (Cost $416,235)+ - 123.5% 549,134 Liabilities in excess of other assets - (23.5)% (104,592) ------------ NET ASSETS - 100.0% $ 444,542 ============ See notes to schedules of portfolio investments and notes to financial statements. 60 Quality Growth Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (100.0%) 3M Co. 123,000 $ 9,225 Allstate Corp. 218,000 13,355 Amgen, Inc. * (g) 181,000 14,435 Best Buy Co., Inc. 276,000 21,142 Broadcom Corp., Class A * 599,000 25,619 C.R. Bard, Inc. 120,000 8,015 Caremark Rx, Inc. * 302,000 13,463 Cintas Corp. (g) 397,000 17,599 Coach, Inc. * 432,000 15,168 Comverse Technology, Inc. * (g) 626,000 15,832 CVS Corp. 884,000 27,430 EMC Corp. * 2,074,000 28,393 Emerson Electric Corp. 205,000 13,489 Exxon Mobil Corp. 177,000 10,399 General Electric Corp. 601,000 20,735 Gilead Sciences, Inc. * 299,000 13,398 Goldman Sachs Group, Inc. 236,000 25,365 Henry Schein, Inc. * (g) 607,000 26,204 Home Depot, Inc. 445,000 19,362 Infosys Technologies Ltd.,ADR 123,000 8,755 Intel Corp. 1,317,000 35,743 Jabil Circuit, Inc. * (g) 461,000 14,379 Juniper Networks, Inc. * (g) 455,000 10,915 Kinetic Concepts, Inc. * (g) 258,000 15,472 L-3 Communications Holdings, Inc. (g) 285,000 22,296 Lehman Brothers Holdings, Inc. (g) 150,000 15,770 Linear Technology Corp. (g) 670,000 26,036 Lowe's Cos., Inc. 215,000 14,237 Marriott International, Inc., Class A (g) 332,000 22,732 Microsoft Corp. 335,000 8,579 Morgan Stanley 255,000 13,528 Motorola, Inc. 1,208,000 25,585 NCR Corp. * 239,000 8,296 Network Appliance, Inc. * (g) 433,000 11,046 Nordstrom, Inc. 494,000 18,283 Northern Trust Corp. (g) 423,000 21,488 Office Depot, Inc. * 919,000 26,081 Oracle Corp. * 1,270,000 17,247 PepsiCo, Inc. 132,000 7,198 Procter & Gamble Co. (g) 328,000 18,247 Rockwell Automation, Inc. (g) 426,000 21,943 Schlumberger Ltd. (g) 123,000 10,300 Station Casinos, Inc. 251,000 18,436 Teva Pharmaceutical Industries Ltd.,ADR (g) 794,000 24,932 Texas Instruments, Inc. 965,000 30,648 United Technologies Corp. 209,000 10,596 Varian Medical Systems, Inc. * (g) 549,000 21,554 VeriSign, Inc. * (g) 495,000 13,023 WellChoice, Inc. * 131,000 8,646 WellPoint, Inc. * 249,000 17,615 Wm.Wrigley Jr. Co. 191,000 13,588 Zimmer Holdings, Inc. * 104,000 8,565 ------------ Total Common Stocks 900,387 ------------ Continued Shares or Principal Amount Value ------------ ------------- Investments in Affiliates (0.0%) Fifth Third Institutional Money Market Fund 90,417 $ 90 ------------ Total Investments in Affiliates 90 ------------ Short-Term Securities Held as Collateral for Securities Lending (13.1%) Pool of various securities for Fifth Third Funds $ 117,696 117,696 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 117,696 ------------ Total Investments (Cost $843,203)+ - 113.1% 1,018,173 Liabilities in excess of other assets - (13.1)% (118,285) ------------ NET ASSETS - 100.0% $ 899,888 ============ See notes to schedules of portfolio investments and notes to financial statements. 61 Large Cap Core Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (97.3%) ACE Ltd. 12,002 $ 555 Agilent Technologies, Inc. * 25,373 666 Alcon, Inc. (g) 12,833 1,470 Allergan, Inc. 7,315 654 Allstate Corp. 35,084 2,149 Altria Group, Inc. 13,835 926 American Electric Power Co. (g) 29,606 1,146 American International Group, Inc. 18,875 1,136 AmerisourceBergen Corp. (g) 18,281 1,312 Anadarko Petroleum Corp. (g) 9,755 862 Applied Materials, Inc. 41,050 758 Archer-Daniels-Midland Co. 74,644 1,712 AstraZeneca PLC ADR 32,147 1,461 AT&T Corp. 87,787 1,738 Autoliv, Inc. 16,860 751 AutoNation, Inc. * 5,072 110 Bank of America Corp. (g) 99,160 4,324 Barr Pharmaceuticals, Inc. * 12,068 572 Bayer AG ADR 5,193 185 BEA Systems, Inc. * 51,292 465 Bear, Stearns & Co., Inc. 683 70 Becton, Dickinson & Co. 26,538 1,469 Best Buy Co., Inc. 15,978 1,224 Boeing Co. 36,763 2,427 BP PLC ADR 11,162 735 Brown-Forman Corp. 17,604 1,029 Burlington Northern Santa Fe Corp. 4,240 230 Burlington Resources, Inc. (g) 2,583 166 Cadence Design Systems, Inc. * 26,127 420 Cardinal Health, Inc. 5,723 341 Caremark Rx, Inc. * 34,237 1,526 Cendant Corp. 56,640 1,210 Check Point Software Technologies Ltd. * 7,168 161 ChevronTexaco Corp. 36,467 2,115 Chubb Corp. 6,490 576 CIGNA Corp. 7,737 826 Circuit City Stores, Inc. 73,373 1,339 Cisco Systems, Inc. * 35,835 686 CIT Group, Inc. 37,019 1,634 Citigroup, Inc. 119,164 5,183 CMS Energy Corp. * (g) 63,124 1,000 Coca-Cola Co. 71,712 3,138 Comcast Corp., Class A * 29,358 902 Compuware Corp. * 59,805 504 ConocoPhillips 48,155 3,014 Countrywide Credit Industries, Inc. 46,293 1,667 CSX Corp. 18,519 843 Darden Restaurants, Inc. 45,716 1,586 Deere & Co. 25,515 1,876 Dell, Inc. * 77,179 3,123 Deutsche Telekom AG ADR 29,343 580 Discovery Holding Co.,A Shares * (g) 5,358 76 Dynegy, Inc. * (g) 92,388 514 E. I. du Pont de Nemours & Co. 2,303 98 Eastman Chemical Co. 17,041 944 Edison International, Inc. 40,577 1,659 EMC Corp. * 69,090 946 Express Scripts, Inc. * 22,975 1,202 Continued Shares Value ------------ ------------- Common Stocks, continued Exxon Mobil Corp. 132,972 $ 7,813 Fannie Mae 20,842 1,164 Federated Department Stores, Inc. (g) 21,880 1,660 Fiserv, Inc. * 35,849 1,591 Freddie Mac 33,408 2,114 Gap, Inc. 31,279 660 General Electric Corp. (a) 141,580 4,884 General Mills, Inc. 30,043 1,424 Genuine Parts Co. 1,382 63 Goodyear Tire & Rubber Co. * (g) 58,055 1,011 Hartford Financial Services Group, Inc. 23,579 1,900 HCA, Inc. 27,371 1,348 Hershey Foods Corp. 18,864 1,205 Hewlett-Packard Co. 109,125 2,687 Home Depot, Inc. 871 38 IBM Corp. 8,898 743 Ingersoll-Rand Co., Class A 13,139 1,027 Intel Corp. 159,391 4,326 Invitrogen Corp * (g) 16,716 1,434 J.C. Penney Co., Inc. 31,401 1,762 J.P. Morgan Chase & Co. 21,028 739 Johnson & Johnson 72,320 4,626 KeyCorp (g) 1,000 34 Kimberly-Clark Corp. 30,523 1,947 Koninklijke (Royal) Philips Electronics NV 15,342 416 Kroger Co. * 15,711 312 Lehman Brothers Holdings, Inc. 19,048 2,003 Liberty Media Corp., Class A * 53,583 471 Lockheed Martin Corp. 28,837 1,799 Loews Corp. 19,665 1,645 LSI Logic Corp. * 45,645 445 Marathon Oil Corp. 2,122 124 Marriott International, Inc., Class A (g) 24,024 1,645 McAfee, Inc. * 15,877 499 McDonald's Corp. 35,002 1,091 MCI, Inc. (g) 54,883 1,401 McKesson, Inc. 31,169 1,402 Medco Health Solutions, Inc. * 24,266 1,175 Mercury Interactive Corp. * (g) 3,262 128 MetLife, Inc. 44,139 2,168 Michael's Stores, Inc. 15,998 656 Microsoft Corp. (a) 228,491 5,851 Monsanto Co. 25,402 1,712 Motorola, Inc. 92,599 1,961 National Semiconductor Corp. 32,444 802 Newell Rubbermaid, Inc. 64,132 1,595 Nokia Corp. ADR 65,167 1,039 Nordstrom, Inc. 27,364 1,013 Northrop Grumman Corp. 31,510 1,747 Novartis AG ADR 22,854 1,113 Occidental Petroleum Corp. 12,310 1,013 Owens-Illinois, Inc. * 4,562 117 Parametric Technology Corp. * 10,125 70 PepsiCo, Inc. 2,949 161 Pfizer, Inc. 178,007 4,718 PG&E Corp. (g) 44,066 1,658 Phelps Dodge Corp. (g) 3,856 410 PNC Financial Services Group 9,750 534 Continued 62 Large Cap Core Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Procter & Gamble Co. (g) 15,934 $ 886 Progressive Corp. 7,709 769 Prudential Financial, Inc. 30,242 2,023 Qwest Communications International, Inc. * (g) 58,107 222 Republic Services, Inc. 35,231 1,277 Sabre Group Holdings Corp., Class A 34,680 666 SAFECO Corp. 469 26 Safeway, Inc. 68,447 1,663 Solectron Corp. * 2,121 8 Sprint Corp. (g) 79,724 2,146 SPX Corp. (g) 13,166 644 Student Loan Corp. (g) 226 49 SUPERVALU, Inc. (g) 38,861 1,376 Target Corp. 18,294 1,075 Texas Instruments, Inc. 76,994 2,445 Total SA ADR 10,834 1,354 Tyco International Ltd. 26,142 797 United Parcel Service, Inc. 25,827 1,885 Valero Energy (g) 11,215 928 Verizon Communications, Inc. 6,681 229 Viacom, Inc. 70,874 2,374 Vivendi Universal SA ADR 10,951 348 Vodafone Group PLC ADR 31,100 803 Wachovia Corp. 40,713 2,051 Wal-Mart Stores, Inc. (a) 28,183 1,391 Wells Fargo & Co. 51,926 3,185 ------------ Total Common Stocks 189,705 ------------ Investments in Affiliates (2.7%) Fifth Third Institutional Money Market Fund 5,272,871 5,273 ------------ Total Investments in Affiliates 5,273 ------------ Money Markets (0.0%) Dreyfus Cash Management Money Market Fund 1 --# ------------ Total Money Markets --# ------------ Short-Term Securities Held as Collateral for Securities Lending (8.7%) Pool of various securities for Fifth Third Funds $ 16,933 16,933 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 16,933 ------------ Total Investments (Cost $193,879)+ - 108.7% 211,911 Liabilities in excess of other assets - (8.7)% (16,962) ------------ NET ASSETS - 100.0% $ 194,949 ============ See notes to schedules of portfolio investments and notes to financial statements. Equity Index Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (98.0%) 3M Co. 28,223 $ 2,117 Abbott Laboratories 56,961 2,656 ACE Ltd. (g) 10,384 480 ADC Telecommunications, Inc. * (g) 4,231 111 Adobe Systems, Inc. 17,782 527 Advanced Micro Devices, Inc. * (g) 14,394 289 AES Corp. * 23,706 380 Aetna, Inc. 10,559 817 Affiliated Computer Services, Inc., Class A * (g) 4,628 231 AFLAC, Inc. 18,337 827 Agilent Technologies, Inc. * 15,793 415 Air Products and Chemicals, Inc. 8,316 497 Alberto-Culver Co. (g) 3,099 140 Albertson's, Inc. (g) 13,448 287 Alcoa, Inc. 31,844 894 Allegheny Energy, Inc. * (g) 6,047 172 Allegheny Technologies, Inc. 3,271 95 Allergan, Inc. 4,809 430 Allied Waste Industries, Inc. * (g) 9,915 85 Allstate Corp. 24,400 1,495 Alltel Corp. (g) 12,024 800 Altera Corp. * 13,603 297 Altria Group, Inc. (g) 75,873 5,081 AMBAC Financial Group, Inc. 3,971 285 Amerada Hess Corp. 3,114 367 Ameren Corp. (g) 7,487 416 American Electric Power Co. 14,007 542 American Express Co. 42,863 2,357 American International Group, Inc. 95,166 5,730 American Power Conversion Corp. 6,569 185 American Standard Companies, Inc. 6,583 291 AmerisourceBergen Corp. (g) 3,822 274 Amgen, Inc. * 45,285 3,612 AmSouth Bancorp. (g) 12,975 362 Anadarko Petroleum Corp. (g) 8,653 764 Analog Devices, Inc. (g) 13,611 534 Andrew Corp. * (g) 5,883 65 Anheuser-Busch Co., Inc. 28,389 1,259 Aon Corp. 11,563 294 Apache Corp. 11,929 816 Apartment Investment & Management Co. 3,497 154 Apollo Group, Inc., Class A * (g) 6,055 455 Apple Computer, Inc. * 30,285 1,292 Applied Biosystems Group 7,174 149 Applied Materials, Inc. 59,978 1,107 Applied Micro Circuits Corp. * 11,257 34 Archer-Daniels-Midland Co. 22,769 522 Ashland, Inc. 2,423 149 AT&T Corp. 29,243 579 Autodesk, Inc. 8,385 287 Automatic Data Processing, Inc. 21,305 946 AutoNation, Inc. * 8,251 178 AutoZone, Inc. * (g) 2,473 241 Avaya, Inc. * 17,539 181 Avery Dennison Corp. 3,713 210 Avon Products, Inc. 17,229 564 Baker Hughes, Inc. 12,357 699 Ball Corp. 4,017 152 Continued 63 Equity Index Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks, continued Bank of America Corp. (g) 147,215 $ 6,420 Bank of New York Co., Inc. 28,442 875 Bausch & Lomb, Inc. 1,960 166 Baxter International, Inc. (g) 22,643 889 BB&T Corp. 20,039 838 Bear, Stearns & Co., Inc. 4,140 423 Becton, Dickinson & Co. 9,241 512 Bed Bath & Beyond, Inc. * 10,688 491 BellSouth Corp. 66,921 1,847 Bemis Co. (g) 3,911 106 Best Buy Co., Inc. 10,908 836 Big Lots, Inc. * 4,124 53 Biogen Idec, Inc. * 12,659 497 Biomet, Inc. (g) 9,232 352 BJ Services Co. (g) 5,936 362 Black & Decker Corp. 2,931 265 BMC Software, Inc. * 8,094 155 Boeing Co. 30,415 2,008 Boston Scientific Corp. * 27,770 804 Bristol-Myers Squibb Co. (g) 71,399 1,784 Broadcom Corp., Class A * 10,627 455 Brown-Forman Corp. 3,293 192 Brunswick Corp. 3,540 165 Burlington Northern Santa Fe Corp. 13,825 750 Burlington Resources, Inc. (g) 14,137 906 C.R. Bard, Inc. 3,827 256 Calpine Corp. * (g) 19,523 65 Campbell Soup Co. (g) 11,897 367 Capital One Financial Corp. (g) 9,248 763 Cardinal Health, Inc. 15,843 944 Caremark Rx, Inc. * 16,697 744 Carnival Corp. 19,250 1,009 Caterpillar, Inc. 25,060 1,351 Cendant Corp. 38,554 823 Centerpoint Energy, Inc. (g) 10,572 145 Centex Corp. 4,624 342 CenturyTel, Inc. (g) 4,917 169 Charles Schwab Corp. 41,945 575 ChevronTexaco Corp. 76,892 4,461 Chiron Corp. * 5,393 195 Chubb Corp. 7,189 639 Ciena Corp. * 20,909 47 CIGNA Corp. 4,807 513 Cincinnati Financial Corp. 6,095 251 Cinergy Corp. 7,370 325 Cintas Corp. 5,459 242 Circuit City Stores, Inc. 6,989 128 Cisco Systems, Inc. * 234,167 4,483 CIT Group, Inc. 7,704 340 Citigroup, Inc. 190,442 8,285 Citizens Communications Co. 12,257 161 Citrix System, Inc. * 6,193 148 Clear Channel Communications, Inc. 18,720 611 Clorox Co. 5,604 313 CMS Energy Corp. * (g) 7,873 125 Coach, Inc. * 13,972 491 Coca-Cola Co. 82,776 3,622 Coca-Cola Enterprises, Inc. 12,888 303 Colgate-Palmolive Co. 19,201 1,017 Comcast Corp., Class A * (g) 80,825 2,483 Continued Shares Value ------------ ------------- Common Stocks, continued Comerica, Inc. 6,219 $ 380 Compass Bancshares, Inc. 4,515 218 Computer Associates International, Inc. 19,446 534 Computer Sciences Corp. * (g) 6,611 303 Compuware Corp. * 14,152 119 Comverse Technology, Inc. * 7,222 183 ConAgra, Inc. 18,835 428 ConocoPhillips 51,125 3,200 Consolidated Edison, Inc. 8,863 427 Constellation Brands, Inc. * 7,154 196 Constellation Energy Group, Inc. 6,462 389 Convergys Corp. * 5,193 76 Cooper Industries Ltd. 3,386 219 Cooper Tire & Rubber Co. (g) 2,564 52 Corning, Inc. * (g) 53,207 1,014 Costco Wholesale Corp. 17,611 810 Countrywide Credit Industries, Inc. 21,622 778 CSX Corp. 7,878 359 Cummins Engine, Inc. 1,563 134 CVS Corp. 29,787 924 D. R. Horton, Inc. 9,949 409 Dana Corp. 5,487 86 Danaher Corp. (g) 10,055 558 Darden Restaurants, Inc. 5,398 187 Deere & Co. 9,020 663 Dell, Inc. * 88,718 3,590 Delphi Corp. 20,505 109 Delta Air Lines, Inc. * (g) 5,138 15 Devon Energy Corp. 17,517 983 Dillards Department Stores, Inc. 2,581 59 Dollar General Corp. (g) 11,015 224 Dominion Resources, Inc. 12,445 919 Dover Corp. 7,443 307 Dow Chemical Co. 35,211 1,689 Dow Jones & Co. 2,579 97 DTE Energy Co. 6,356 299 Duke Energy Corp. 34,271 1,012 Dynegy, Inc. * (g) 12,100 67 E*TRADE Financial Corp. * 13,542 210 E. I. du Pont de Nemours & Co. 36,428 1,555 Eastman Chemical Co. 3,124 173 Eastman Kodak Co. (g) 10,475 280 Eaton Corp. 5,587 365 eBay, Inc. * 44,655 1,865 Ecolab, Inc. (g) 8,068 271 Edison International, Inc. 11,904 487 El Paso Energy Corp. (g) 23,501 282 Electronic Arts, Inc. * (g) 11,251 648 Electronic Data Systems Corp. 18,914 389 Eli Lilly & Co. 41,387 2,331 EMC Corp. * 87,893 1,203 Emerson Electric Corp. 15,321 1,008 Engelhard Corp. (g) 4,464 128 Entergy Corp. 7,788 607 EOG Resources, Inc. (g) 8,732 534 Equifax, Inc. 4,936 180 Equity Office Properties Trust 14,734 522 Exelon Corp. (g) 24,630 1,319 Express Scripts, Inc. * 5,560 291 Exxon Mobil Corp. 233,038 13,690 Continued 64 Equity Index Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks, continued Family Dollar Stores, Inc. 6,128 $ 158 Fannie Mae 35,365 1,975 Federated Department Stores, Inc. (g) 6,182 469 Federated Investors, Inc. (g) 3,476 111 FedEx Corp. 11,010 926 Fifth Third Bancorp. (b)(g) 19,003 819 First Data Corp. 28,514 1,173 First Energy Corp. 12,052 600 First Horizon National Corp. 4,499 184 Fiserv, Inc. * 7,061 313 Fisher Scientific International, Inc. * 4,285 287 Fluor Corp. 3,126 199 Ford Motor Co. 68,323 734 Forest Laboratories, Inc. * (g) 12,437 496 Fortune Brands, Inc. 5,294 501 FPL Group, Inc. 14,293 616 Franklin Resources, Inc. 7,227 584 Freddie Mac 25,388 1,607 Freeport-McMoRan Copper & Gold, Inc., Class B (g) 6,540 263 Freescale Semiconductor, Inc. * (g) 14,672 378 Gannett, Inc. 9,177 670 Gap, Inc. 27,755 586 Gateway, Inc. * (g) 10,923 43 General Dynamics Corp. 7,312 842 General Electric Corp. (a) 388,299 13,396 General Mills, Inc. 13,657 647 General Motors Corp. (g) 20,638 760 Genuine Parts Co. (g) 6,384 292 Genzyme Corp. * 9,316 694 Georgia Pacific Corp. (g) 9,494 324 Gilead Sciences, Inc. * 16,573 743 Gillette Co. 36,533 1,961 Golden West Financial Corp. (g) 10,318 672 Goldman Sachs Group, Inc. 16,191 1,740 Goodrich Corp. 4,389 194 Goodyear Tire & Rubber Co. * (g) 6,423 112 Guidant Corp. 11,787 811 H & R Block, Inc. (g) 6,038 344 H.J. Heinz Co. (g) 12,791 470 Halliburton Co. 18,432 1,033 Harley-Davidson, Inc. (g) 10,340 550 Harrah's Entertainment, Inc. 6,685 526 Hartford Financial Services Group, Inc. 10,805 871 Hasbro, Inc. 6,099 134 HCA, Inc. 15,331 755 Health Management Associates, Inc., Class A (g) 8,915 212 Hercules, Inc. * (g) 4,091 57 Hershey Foods Corp. 7,994 511 Hewlett-Packard Co. 105,798 2,605 Hilton Hotels Corp. 14,057 348 Home Depot, Inc. 78,614 3,421 Honeywell International, Inc. 31,086 1,221 Hospira, Inc. * 5,703 218 Humana, Inc. * 5,876 234 Huntington Bancshares (g) 8,472 211 IBM Corp. 59,106 4,934 Illinois Tool Works, Inc. 10,038 860 IMS Health, Inc. 8,475 231 Continued Shares Value ------------ ------------- Common Stocks, continued Ingersoll-Rand Co., Class A 6,115 $ 478 Intel Corp. 226,306 6,143 International Flavors & Fragrances, Inc. 3,237 123 International Game Technology 12,607 345 International Paper Co. (g) 17,916 566 Interpublic Group Cos., Inc. * (g) 15,452 193 Intuit, Inc. * 6,775 325 ITT Industries, Inc. 3,372 359 J.C. Penney Co., Inc. 9,680 543 J.P. Morgan Chase & Co. 128,888 4,529 Jabil Circuit, Inc. * 6,706 209 Janus Capital Group, Inc. 8,633 130 JDS Uniphase Corp. * (g) 52,786 80 Jefferson-Pilot Corp. 4,988 250 Johnson & Johnson 108,897 6,964 Johnson Controls, Inc. 6,985 401 Jones Apparel Group, Inc. 4,473 137 KB Home (g) 3,044 249 Kellogg Co. 12,824 581 Kerr-McGee Corp. 4,258 342 KeyCorp (g) 14,846 508 KeySpan Corp. 6,389 260 Kimberly-Clark Corp. 17,585 1,121 Kinder Morgan, Inc. 4,013 357 King Pharmaceuticals, Inc. * 8,826 98 KLA-Tencor Corp. (g) 7,181 371 Knight-Ridder, Inc. 2,759 173 Kohl's Corp. * 11,909 671 Kroger Co. * 26,752 531 L-3 Communications Holdings, Inc. 4,423 346 Laboratory Corp. of America Holdings * (g) 4,934 250 Leggett & Platt, Inc. 6,973 176 Lehman Brothers Holdings, Inc. 10,086 1,060 Lexmark International, Inc. * 4,627 290 Limited Brands, Inc. 13,959 340 Lincoln National Corp. 6,370 308 Linear Technology Corp. 11,220 436 Liz Claiborne, Inc. (g) 3,966 165 Lockheed Martin Corp. 14,921 931 Loews Corp. 5,833 488 Louisiana-Pacific Corp. 4,047 109 Lowe's Cos., Inc. 28,235 1,870 LSI Logic Corp. * (g) 14,065 137 Lucent Technologies, Inc. * (g) 161,898 474 M&T Bank Corp. (g) 3,593 390 Manor Care, Inc. 3,149 120 Marathon Oil Corp. 13,251 773 Marriott International, Inc., Class A 7,342 503 Marsh & McLennan Cos.,Inc 19,326 560 Marshall & Ilsley Corp. 7,954 365 Masco Corp. 15,879 539 Mattel, Inc. (g) 15,225 284 Maxim Integrated Products, Inc. 11,938 500 May Department Stores Co. 11,073 455 Maytag Corp. (g) 2,905 49 MBIA, Inc. 4,864 295 MBNA Corp. 46,684 1,175 McCormick & Co. 4,961 173 McDonald's Corp. 46,481 1,449 McGraw-Hill Cos., Inc. 13,537 623 Continued 65 Equity Index Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks, continued McKesson, Inc. 10,786 $ 485 MeadWestvaco Corp. 6,863 201 Medco Health Solutions, Inc. * 10,061 487 MedImmune, Inc. * 9,088 258 Medtronic, Inc. 44,193 2,384 Mellon Financial Corp. 15,484 472 Merck & Co., Inc. 80,678 2,506 Mercury Interactive Corp. * (g) 3,085 121 Meredith Corp. 1,662 82 Merrill Lynch & Co., Inc. 34,629 2,035 MetLife, Inc. 26,780 1,316 MGIC Investment Corp. 3,536 242 Micron Technology, Inc. * 22,428 266 Microsoft Corp. 368,119 9,428 Millipore Corp. * 1,817 111 Molex, Inc. (g) 6,127 173 Molson Coors Brewing Co., Class B 2,937 184 Monsanto Co. 9,729 655 Monster Worldwide, Inc. * (g) 4,410 134 Moody's Corp. 10,024 474 Morgan Stanley 40,138 2,129 Motorola, Inc. 89,584 1,897 Mylan Laboratories, Inc. 7,994 139 Nabors Industries Ltd. * 5,483 359 National City Corp. 21,712 801 National Semiconductor Corp. (g) 12,982 321 National-Oilwell Varco, Inc. * 6,469 339 Navistar International Corp. * 2,403 82 NCR Corp. * 6,804 236 Network Appliance, Inc. * 13,378 341 New York Times Co. (g) 5,326 168 Newell Rubbermaid, Inc. 10,041 250 Newmont Mining Corp. 16,219 609 News Corp., Class A 105,342 1,726 Nextel Communications, Inc., Class A * 41,168 1,433 NICOR, Inc. (g) 1,612 66 Nike, Inc., Class B (g) 8,394 702 NiSource, Inc. 9,911 241 Noble Corp. 4,953 333 Nordstrom, Inc. 9,212 341 Norfolk Southern Corp. 15,122 563 North Fork Bancorp 17,777 487 Northern Trust Corp. 7,431 377 Northrop Grumman Corp. 13,163 730 Novell, Inc. * (g) 13,868 84 Novellus Systems, Inc. * (g) 5,108 147 Nucor Corp. (g) 5,838 324 NVIDIA Corp. * (g) 6,073 164 Occidental Petroleum Corp. 14,514 1,194 Office Depot, Inc. * 11,428 324 Officemax, Inc. 2,643 78 Omnicom Group, Inc. 6,808 578 Oracle Corp. * 162,197 2,203 PACCAR, Inc. 6,346 458 Pactiv Corp. * (g) 5,423 119 Pall Corp. 4,531 140 Parametric Technology Corp. * 9,883 68 Parker Hannifin Corp. 4,391 289 Paychex, Inc. 12,994 454 People's Energy Corp. 1,389 60 Continued Shares Value ------------ ------------- Common Stocks, continued Pepsi Bottling Group, Inc. 7,224 $ 211 PepsiCo, Inc. 61,317 3,344 PerkinElmer, Inc. 4,727 99 Pfizer, Inc. 272,597 7,225 PG&E Corp. (g) 13,649 514 Phelps Dodge Corp. (g) 3,532 376 Pinnacle West Capital Corp. 3,713 170 Pitney Bowes, Inc. 8,434 376 Plum Creek Timber Co., Inc. 6,716 254 PMC-Sierra, Inc. * 6,575 65 PNC Financial Services Group 10,327 566 PPG Industries, Inc. (g) 6,328 412 PPL Corp. 6,910 426 Praxair, Inc. 11,793 582 Principal Financial Group (g) 10,944 481 Procter & Gamble Co. (g) 90,534 5,035 Progress Energy, Inc. 9,027 403 Progressive Corp. 7,315 729 Providian Financial Corp. * (g) 10,710 202 Prudential Financial, Inc. 19,146 1,281 Public Service Enterprise Group, Inc. 8,709 560 Pulte Homes, Inc. 4,329 405 QLogic Corp. * 3,356 104 QUALCOMM, Inc. 60,134 2,375 Quest Diagnostics, Inc. 6,670 342 Qwest Communications International, Inc. * (g) 61,066 233 R.R. Donnelley & Sons Co. 7,870 284 RadioShack Corp. 5,790 136 Raytheon Co. 16,555 651 Reebok International Ltd. 2,047 87 Regions Financial Corp. 16,975 571 Reynolds American, Inc. (g) 4,255 354 Robert Half International, Inc. (g) 5,882 199 Rockwell Automation, Inc. 6,393 329 Rockwell Collins, Inc. 6,518 318 Rohm & Haas Co. 7,104 327 Rowan Cos., Inc. 3,918 134 Ryder Systems, Inc. (g) 2,342 91 Sabre Group Holdings Corp., Class A 4,806 92 SAFECO Corp. 4,647 255 Safeway, Inc. 16,351 397 Sanmina-SCI Corp. * 19,125 91 Sara Lee Corp. 28,841 575 SBC Communications, Inc. (g) 121,378 2,968 Schering-Plough Corp. 53,893 1,122 Schlumberger Ltd. 21,542 1,803 Scientific-Atlanta, Inc. 5,556 214 Sealed Air Corp. * 3,053 162 Sears Holdings Corp. * 3,756 579 Sempra Energy 8,696 369 Sherwin-Williams Co. 4,625 220 Siebel Systems, Inc. 18,810 158 Sigma-Aldrich Corp. 2,515 161 SLM Corp. (g) 15,348 790 Snap-On, Inc. 2,117 78 Solectron Corp. * 35,481 136 Southern Co. 27,142 950 Southwest Airlines Co. (g) 26,919 382 Sovereign Bancorp, Inc. 13,694 329 Continued 66 Equity Index Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks, continued Sprint Corp. (g) 54,003 $ 1,453 St. Jude Medical, Inc. * 13,187 625 St. Paul Cos 24,878 1,095 Stanley Works 2,747 134 Staples, Inc. 27,144 618 Starbucks Corp. * (g) 14,269 750 Starwood Hotels & Resorts Worldwide, Inc. 7,763 492 State Street Corp. 12,187 606 Stryker Corp. 13,691 741 Sun Microsystems, Inc. * (g) 123,420 474 SunGard Data Systems, Inc. * 10,555 379 Sunoco, Inc. (g) 2,534 319 SunTrust Banks, Inc. 12,393 901 SUPERVALU, Inc. (g) 4,936 175 Symantec Corp. * 43,264 951 Symbol Technologies, Inc. 8,866 103 Synovus Financial Corp. (g) 11,358 336 Sysco Corp. 23,271 839 T. Rowe Price Group, Inc. 4,522 300 Target Corp. 32,358 1,901 Teco Energy, Inc. (g) 7,546 143 Tektronix, Inc. (g) 3,266 82 Tellabs, Inc. * 16,880 164 Temple-Inland, Inc. 4,619 184 Tenet Healthcare Corp. * (g) 17,112 208 Teradyne, Inc. * (g) 7,095 110 Texas Instruments, Inc. 61,079 1,940 Textron, Inc. 4,938 366 The Walt Disney Co. 74,807 1,918 Thermo Electron Corp. * 5,844 175 Tiffany & Co. (g) 5,316 181 Time Warner, Inc. * 171,695 2,921 TJX Companies, Inc. (g) 16,938 398 Torchmark Corp. 3,950 206 Transocean, Inc. * 12,021 678 Tribune Co. (g) 10,898 398 TXU Corp. 8,777 760 Tyco International Ltd. 74,084 2,257 U.S. Bancorp 67,076 2,016 U.S.T., Inc. (g) 6,040 278 Union Pacific Corp. 9,536 670 Unisys Corp. * 12,324 80 United Parcel Service, Inc. 40,894 2,984 United States Steel Corp. (g) 4,171 178 United Technologies Corp. 37,428 1,898 UnitedHealth Group, Inc. 46,346 2,425 Univision Communications, Inc. * (g) 10,665 302 Unocal Corp. 9,886 641 UNUMProvident Corp. (g) 10,872 208 V.F. Corp. 3,653 216 Valero Energy (g) 9,377 776 Verizon Communications, Inc. 101,209 3,463 Viacom, Inc. 59,106 1,979 Visteon Corp. 4,733 42 Vulcan Materials Co. 3,760 264 W.W. Grainger, Inc. 3,048 190 Wachovia Corp. 57,611 2,902 Wal-Mart Stores, Inc. (g) 122,434 6,043 Walgreen Co. 37,319 1,786 Continued Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Washington Mutual, Inc. 32,309 $ 1,372 Waste Management, Inc. 20,771 584 Waters Corp. * 4,415 200 Watson Pharmaceuticals, Inc. * (g) 4,001 134 Weatherford International Ltd. * (g) 5,070 321 WellPoint, Inc. * 22,524 1,593 Wells Fargo & Co. 61,696 3,785 Wendy's International, Inc. 4,165 215 Weyerhaeuser Co. 9,111 628 Whirlpool Corp. (g) 2,443 196 Williams Cos., Inc. 20,834 442 Wm.Wrigley Jr. Co. 7,146 508 Wyeth 49,190 2,250 Xcel Energy, Inc. (g) 14,648 284 Xerox Corp. * (g) 34,981 462 Xilinx, Inc. 12,734 361 XL Capital Ltd., Class A 5,080 365 XTO Energy, Inc. 13,324 468 Yahoo, Inc. * (g) 48,113 1,604 YUM! Brands, Inc. 10,646 557 Zimmer Holdings, Inc. * 9,014 742 Zions Bancorporation 3,283 235 ------------ Total Common Stocks 412,090 ------------ Real Estate Investment Trusts(i) (0.4%) Archstone-Smith Trust 7,300 310 Equity Residential Properties Trust 10,775 435 ProLogis 6,719 306 Simon Property Group, Inc. (g) 8,081 645 ------------ Total Real Estate Investment Trusts 1,696 ------------ Investments in Affiliates (1.5%) Fifth Third Institutional Money Market Fund 6,248,278 6,248 ------------ Total Investments in Affiliates 6,248 ------------ Short-Term Securities Held as Collateral for Securities Lending (13.8%) Pool of various securities for Fifth Third Funds $ 57,984 57,984 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 57,984 ------------ Total Investments (Cost $257,712)+ - 113.7% 478,018 Liabilities in excess of other assets - (13.7)% (57,733) ------------ NET ASSETS - 100.0% $ 420,285 ============ See notes to schedules of portfolio investments and notes to financial statements. 67 Balanced Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Commercial Paper (1.3%) Cargill, Inc., 3.32%, 8/16/05, ** $ 1,770 $ 1,765 ------------ Total Commercial Paper 1,765 ------------ Common Stocks (62.4%) Abbott Laboratories 25,570 1,192 Air Products and Chemicals, Inc. 31,375 1,876 Allstate Corp. 37,933 2,324 Alltel Corp. (g) 30,000 1,995 Analog Devices, Inc. (g) 78,362 3,071 Bank of America Corp. 34,000 1,482 Check Point Software Technologies Ltd.* 126,807 2,857 Citigroup, Inc. 39,871 1,734 Coca-Cola Co. 29,650 1,297 Dell, Inc. * 84,853 3,434 Ecolab, Inc. (g) 16,868 566 Emerson Electric Corp. 15,642 1,029 Exxon Mobil Corp. 52,505 3,085 FedEx Corp. 5,949 500 FPL Group, Inc. 19,386 836 General Electric Corp. 71,905 2,481 Guidant Corp. 24,742 1,702 Honeywell International, Inc. 78,747 3,094 Intel Corp. 67,379 1,829 Johnson & Johnson 31,519 2,016 McDonald's Corp. 97,509 3,039 Medco Health Solutions, Inc. * 24,484 1,186 Microsoft Corp. 132,575 3,395 Noble Corp. (g) 17,106 1,149 Omnicom Group, Inc. 31,071 2,637 PepsiCo, Inc. 47,281 2,579 Pfizer, Inc. 64,716 1,715 Praxair, Inc. 31,451 1,553 Procter & Gamble Co. (g) 31,831 1,771 Prudential Financial, Inc. 30,127 2,015 Schlumberger Ltd. 19,731 1,652 Sherwin-Williams Co. 60,217 2,867 Symantec Corp. * 111,760 2,455 Synovus Financial Corp. 135,455 4,006 Teva Pharmaceutical Industries Ltd.,ADR (g) 45,054 1,415 UnionBanCal Corp. 370 26 United Technologies Corp. 58,860 2,984 Walgreen Co. (g) 39,051 1,869 Weatherford International Ltd. * (g) 31,898 2,019 Wells Fargo & Co. 81,450 4,998 ------------ Total Common Stocks 83,730 ------------ Corporate Bonds (21.5%) AOL Time Warner, Inc., 7.70%, 5/1/32 $ 125 156 Bank One Capital III, 8.75%, 9/1/30 675 923 Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A3, 4.74%, 1/25/35 (d) 846 838 Continued Principal Amount Value ------------ ------------- Corporate Bonds, continued Bear Stearns Asset Backed Securities, Inc., Series 2004-HE3, Class 1A1, 3.48%, 5/25/31 (d)(f) $ 576 $ 576 Bear Stearns Commercial Mortgage Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 478 497 Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-T14, Class A4, 5.20%, 1/12/41 (d) 700 714 Chase Manhattan Auto Owner Trust, 1.52%, 5/15/07 425 423 Chase Mortgage Finance Corp., 5.00%, 11/25/33 1,737 1,705 Countrywide Alternative Loan Trust, 6.50%, 9/25/34 393 402 Credit Suisse First Boston Mortgage Securities Corp., Series 1997-C2, Class A2, 6.52%, 1/17/35 108 108 DaimlerChrysler, 8.50%, 1/18/31 (g) 65 83 Duke Energy Corp., 6.45%, 10/15/32 225 248 First Franklin Mortgage Loan, 2.47%, 7/25/33(d) 59 59 First Union-Lehman Brothers, 7.00%, 4/18/29 630 695 Ford Motor Credit Co., 7.00%, 10/1/13 (g) 145 141 Gazprom International, 7.20%, 2/1/20 110 118 General Electric Capital Corp., 6.75%, 3/15/32 175 210 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 3.54%, 12/25/20(d) 1,378 1,378 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 4.34%, 11/1/34 385 380 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 3.50%, 2/25/35 (d)(f) 1,000 1,003 Green Tree Financial Corp., 7.60%, 6/15/25 270 284 Green Tree Financial Corp., Series 1998-6, Class A, 6.27%, 6/1/30 203 205 Greenwich Capital Commercial Funding Corp., Series 2002-C1, Class A4, 4.95%, 1/11/35 1,000 1,009 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 700 705 GS Mortgage Securities Corp. II, Series 2004-C1, Class A1, 3.66%, 10/10/28 691 673 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 1,000 998 IBM Corp., 5.88%, 11/29/32 250 271 IndyMac Index Mortgage Loan Trust, Series 2005-AR9, 5.48%, 7/25/35 486 488 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.88%, 2/25/35 471 467 Continued 68 Balanced Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds, continued JP Morgan Mortgage Trust, Series 2005-A2, 4.93%, 4/25/35 $ 2,000 $ 1,979 Lockheed Martin Corp., 7.75%, 5/1/26 180 232 Marsh & McLennan Cos., Inc., 5.38%, 7/15/14 225 217 Morgan Stanley Capital I, 5.11%, 6/15/40 800 810 Morgan Stanley Dean Witter Capital I, 4.74%, 11/13/36 700 696 Morgan Stanley Mortgage Loan Trust, 5.00%, 8/25/19 1,001 998 Motorola, Inc., 6.50%, 11/15/28 (g) 205 224 Navistar Financial Corp. Owner Trust, 1.73%, 2/15/07 176 175 Navistar Financial Corp. Owner Trust, 3.42%, 4/15/08 (d)(f) 2,000 2,002 Pemex Master Trust, 6.13%, 8/15/08 175 179 Residential Accredit Loans, Inc., 3.38%, 3/25/34 (d)(f) 1,166 1,165 Residential Asset Securities Corp., 3.55%, 3/25/34 (d)(f) 971 973 Trans-Canada Pipeline, 5.60%, 3/31/34 195 202 Truck Retail Installment Paper Corp., 3.66%, 12/15/16 (d)(f) 2,000 2,001 UBS Preferred Funding Trust I, 8.62%, 10/1/10(d) 250 292 Viacom, Inc., 5.50%, 5/15/33 250 222 Washington Mutual, Series 2004-AR3, Class A-2, 4.24%, 6/25/34 449 443 YUM! Brands Inc., 7.70%, 7/1/12 250 289 ------------ Total Corporate Bonds 28,856 ------------ Foreign Bonds (0.6%) France Telecom, 8.75%, 3/1/31 200 275 United Mexican States, 4.63%, 10/8/08 580 577 ------------ Total Foreign Bonds 852 ------------ U.S. Government Agencies (15.5%) Fannie Mae (10.5%) 6.50%, 6/1/16 1,287 1,337 5.50%, 1/1/18 305 311 4.50%, 5/1/18 TBA 2,750 2,706 5.50%, 11/1/18 593 605 4.00%, 2/25/21 1,431 1,429 5.50%, 2/1/25 285 288 5.00%, 5/1/25 494 491 7.50%, 6/1/27 45 48 7.50%, 12/1/27 26 28 7.50%, 12/1/27 99 105 7.00%, 9/1/31 236 249 7.00%, 6/1/32 24 25 5.00%, 6/1/33 TBA 1,000 985 5.50%, 6/1/33 TBA 4,500 4,525 6.00%, 2/1/34 399 408 6.00%, 2/1/34 418 427 7.00%, 9/1/34 57 60 ------------ 14,027 ------------ Continued Shares or Principal Amount Value ------------ ------------- U.S. Government Agencies, continued Freddie Mac (3.7%) 4.50%, 8/15/16 $ 1,585 $ 1,558 7.50%, 7/1/27 13 14 7.50%, 8/1/27 60 64 7.50%, 11/1/27 31 34 7.50%, 12/1/27 80 85 6.50%, 5/1/31 244 253 6.50%, 11/1/31 734 761 7.00%, 1/1/32 10 10 6.25%, 7/15/32 (g) 700 847 7.00%, 8/1/32 49 52 4.50%, 6/1/34 189 181 4.50%, 9/1/34 227 217 6.00%, 10/1/34 770 787 6.00%, 10/1/34 168 172 ------------ 5,035 ------------ Government National Mortgage Association (1.3%) 4.50%, 11/16/29 465 457 6.50%, 4/15/32 174 182 7.00%, 7/20/32 131 137 5.50%, 10/1/33 TBA 1,000 1,013 ------------ 1,789 ------------ Total U.S. Government Agencies 20,851 ------------ U.S. Treasury Obligations (1.7%) U.S. Treasury Bonds (0.6%) 6.25%, 5/15/30 (g) 300 377 5.38%, 2/15/31 (g) 400 455 ------------ 832 ------------ U.S. Treasury Notes (1.1%) 4.13%, 5/15/15 (g) 1,500 1,481 ------------ Total U.S. Treasury Obligations 2,313 ------------ Money Markets (3.8%) Dreyfus Cash Management Money Market Fund 468 --# Federated Prime Value Obligations Money Market Fund 5,064,382 5,064 ------------ Total Money Markets 5,064 ------------ Short-Term Securities Held as Collateral for Securities Lending (10.9%) Pool of various securities for Fifth Third Funds $ 14,651 14,651 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 14,651 ------------ Total Investments (Cost $145,934)+ - 117.7% 158,082 Liabilities in excess of other assets - (17.7)% (23,752) ------------ NET ASSETS - 100.0% $ 134,330 ============ See notes to schedules of portfolio investments and notes to financial statements. 69 Micro Cap Value Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (97.4%) A. M. Castle & Co. * 74,000 $ 1,126 A.T. Cross Co., Class A * 163,000 817 ActivCard S.A. * 3,000 14 Agilysys, Inc. (g) 28,000 542 Ameron International Corp. 57,000 2,178 Analysts International Corp. * 250,000 938 Anaren, Inc. * (g) 90,000 1,301 Angelica Corp. 33,000 833 APAC Customer Services, Inc. * 525,000 462 Apogee Enterprises, Inc. 217,000 3,431 Associated Estates Realty Corp. 110,000 1,073 Ault, Inc. * 222,000 633 Bassett Furniture Industries, Inc. 36,570 715 BEI Technologies, Inc. (g) 72,000 2,502 Benihana, Inc., Class A * (g) 131,000 2,602 BioScrip, Inc. * 266,721 1,827 BKF Capital Group 75,000 2,557 Blair Corp. (g) 68,000 2,719 Bombay Co., Inc. * 300,000 1,500 Boykin Lodging Co. * 91,000 1,364 Brush Wellman, Inc. * 157,000 2,658 BUCA, Inc. * (g) 220,014 1,342 CalAmp Corp. * 147,000 1,207 Calgon Carbon Corp. 213,000 1,866 Capstone Turbine Corp. * 129,157 235 Celadon Group, Inc. * 100,000 1,993 Century Business Services, Inc. * 372,183 1,693 Cepheid, Inc. * 98,000 841 Cobra Electronics Corp. * 206,000 1,810 Compudyne Corp. * 135,000 1,030 Comstock Resources, Inc. * 81,000 2,243 Crawford & Co., Class A 12,200 81 Crawford & Co., Class B 157,800 1,136 Cutter & Buck, Inc. 135,801 1,761 Deb Shops, Inc. 88,000 2,112 DHB Industries, Inc. * (g) 125,000 951 Digimarc Corp. * 145,000 911 Dot Hill Systems Corp. * (g) 295,000 1,758 Dril-Quip, Inc. * 81,000 2,691 Electro Rent Corp. * 97,000 1,378 Emerson Radio Corp. * 450,000 1,526 Enesco Group, Inc. * 250,000 685 ESS Technology, Inc. * 3,000 12 Flow International Corp. * (g) 125,000 968 Frozen Food Express Industries, Inc. * 114,000 1,192 GSI Lumonics, Inc. * 146,000 1,463 Haggar Corp. 103,000 2,313 Hancock Fabrics, Inc. (g) 200,000 1,380 Hardinge, Inc. 47,000 719 Hartmarx Corp. * (g) 291,000 2,974 Heidrick & Struggles International, Inc. * (g) 49,000 1,469 ICO, Inc. * 155,000 364 InFocus Corp. * 273,000 977 Input/Output, Inc. * (g) 285,000 2,063 Jameson Inns, Inc. * 145,700 345 K2, Inc. * 99,480 1,323 KVH Industries, Inc. * (g) 89,000 878 Lazare Kaplan International, Inc. * 183,000 2,094 Continued Shares Value ------------ ------------- Common Stocks, continued LESCO, Inc. * 177,000 $ 2,482 Lightbridge, Inc. * 110,000 792 Lydall, Inc. * 135,000 1,289 MAIR Holdings, Inc. * (g) 140,685 1,272 Material Sciences Corp. * 306,000 4,590 Maxwell Technologies, Inc. * (g) 172,000 2,374 Meade Instruments Corp. * 400,000 1,044 Meadowbrook Insurance Group * 140,000 727 MEDTOX Scientific, Inc. * 131,000 921 MGP Ingredients, Inc. 125,000 1,084 MHI Hospitality Corp. 95,000 971 Michael Baker Corp. * 89,423 2,070 Monterey Pasta Co. * 423,000 1,523 Movado Group, Inc. 49,000 947 Nanometrics, Inc. * (g) 166,000 1,902 National Atlantic Holdings Corp. * 90,000 1,110 National Dentex Corp. * 97,500 1,895 Northwest Pipe Co. * 40,000 1,040 Olympic Steel, Inc. * (g) 74,514 1,192 On Assignment, Inc. * 323,000 1,745 Oregon Steel Mills, Inc. * 53,245 1,183 Orthologic Corp. * 98,000 431 OSI Systems, Inc. * (g) 145,000 2,588 Osteotech, Inc. * 70,600 313 Overland Storage, Inc. * 65,000 675 PAM Transportation Services, Inc. * 50,000 823 PAREXEL International Corp. * 20,000 397 Perceptron, Inc. * 90,213 650 Pharmacopeia, Inc. * (e)(g) 188,000 765 Planar Systems, Inc. * (g) 120,000 938 Plato Learning, Inc. * (g) 245,000 1,997 Poore Brothers, Inc. * 100,000 490 Powell Industries, Inc. * 130,000 3,021 Quaker Fabric Corp. (g) 90,000 362 R.G. Barry Corp. * 196,000 980 Register.com, Inc. * 42,219 325 Rewards Network, Inc. * (g) 175,000 926 Rockford Corp. * (g) 283,000 1,019 Rocky Shoes & Boots, Inc. * 75,000 2,159 RTI International Metals, Inc. * 23,000 792 Russ Berrie & Co., Inc. (g) 95,000 1,519 Safeguard Scientifics, Inc. * 505,000 682 Saucony, Inc., Class A 34,000 779 Sea Containers, Ltd. 163,000 2,519 Skechers U.S.A., Inc. * 190,000 3,124 SonicWALL, Inc. * 425,000 2,270 Southcoast Financial Corp. * 36,300 915 Standard Register Co. 99,000 1,510 Steinway Musical Instruments, Inc. * 16,000 477 Stepan Co. 181,000 4,805 Strategic Distribution, Inc. * 101,000 1,054 Stride Rite Corp. 23,000 322 Superior Uniform Group, Inc. 58,000 754 Sykes Enterprises, Inc. * 115,000 1,179 Symmetricom, Inc. * 310,000 3,242 Systemax, Inc. * 14,000 97 Tasty Baking Co. 73,000 632 The Row Companies * 114,100 428 Continued 70 Micro Cap Value Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Top Tankers, Inc. 119,000 $ 1,825 Transport Corp. of America, Inc. * 142,000 988 U. S. Concrete, Inc. * 70,000 469 U.S. Xpress Enterprises, Inc.,A Shares * 125,000 1,643 Universal Electronics, Inc. * 99,000 1,802 Veritas DGC, Inc. * (g) 30,000 924 Vesta Insurance Group, Inc. 200,000 518 Vignette Corp. * 42,500 670 White Electronic Designs Corp. * 120,000 730 Willbros Group, Inc. * 110,000 1,848 Wolverine Tube, Inc. * 100,000 661 Zomax, Inc. * 390,300 1,151 ------------ Total Common Stocks 172,917 ------------ Investment Companies (0.9%) Equus II, Inc. 139,801 1,160 MVC Capital, Inc. 40,000 444 ------------ Total Investment Companies 1,604 ------------ Investments in Affiliates (0.6%) Fifth Third Institutional Money Market Fund 1,055,408 1,055 ------------ Total Investments in Affiliates 1,055 ------------ Short-Term Securities Held as Collateral for Securities Lending (13.0%) Pool of various securities for Fifth Third Funds $ 23,129 23,129 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 23,129 ------------ Total Investments (Cost $144,808)+ - 111.9% 198,705 Liabilities in excess of other assets - (11.9)% (21,126) ------------ NET ASSETS - 100.0% $ 177,579 ============ See notes to schedules of portfolio investments and notes to financial statements. Small Cap Value Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (91.7%) ACE Cash Express, Inc. * 65,000 $ 1,529 Agrium, Inc. 189,000 4,322 Albany Molecular Research, Inc. * (g) 150,000 2,328 Anixter International, Inc. * (g) 67,400 2,801 Ann Taylor Stores Corp. * (g) 132,700 3,420 Applied Films Corp. * 46,000 1,208 Avnet, Inc. * (g) 129,800 3,398 Big Lots, Inc. * (g) 200,000 2,594 Black Hills Corp. (g) 94,400 3,765 Bob Evans Farms, Inc. 155,000 3,930 Borland Software Corp. * (g) 193,000 1,295 Cal Dive International, Inc. * 20,000 1,184 Cambior, Inc. * 223,300 475 Cash America International, Inc. 75,000 1,562 Coeur d'Alene Mines Corp. * (g) 5,000 18 Colonial Properties Trust 15,000 711 Commercial Capital Bancorp., Inc. (g) 73,600 1,460 Community Health System, Inc. * 89,000 3,436 Credence Systems Corp. * (g) 253,600 2,762 Dana Corp. (g) 117,000 1,838 Eldorado Gold Corp. * 161,700 435 Endurance Specialty Holdings, Ltd. 110,000 4,290 Goody's Family Clothing, Inc. 106,900 827 Great Plains Energy, Inc. (g) 82,600 2,681 Hain Celestial Group, Inc. * 189,000 3,748 Headwaters, Inc. * (g) 76,900 3,287 Horace Mann Educators Corp. (g) 53,000 1,059 Houston Exploration Co. * 46,500 2,687 Input/Output, Inc. * (g) 180,000 1,303 Jack in the Box, Inc. * 25,000 951 Jackson Hewitt Tax Service, Inc. 70,000 1,772 Lubrizol Corp. 65,000 2,860 Methode Electronics, Inc. 185,600 2,346 Odyssey Healthcare, Inc. * (g) 117,000 1,719 Payless ShoeSource, Inc. * (g) 100,000 1,942 PepsiAmericas, Inc. 66,200 1,707 Performance Food Group Co. * 130,900 3,931 Perry Ellis International, Inc. * 117,500 2,825 Photronics, Inc. * (g) 56,500 1,516 Piper Jaffray Cos., Inc. * 50,300 1,731 Platinum Underwriters Holdings, Ltd. 163,000 5,651 Polyone Corp. * (g) 384,000 2,742 Priority Healthcare Corp., Class B * (g) 159,000 4,371 PT Indosat TBK ADR 60,000 1,771 Raymond James Financial, Inc. (g) 53,000 1,582 Scottish Re Group, Ltd. (g) 150,900 3,629 Service Corp. International 600,000 5,203 South Financial Group, Inc. 104,000 3,012 Standard Register Co. 224,000 3,416 Steiner Leisure, Ltd. * 33,000 1,140 Steris Corp. 151,600 4,119 The Steak n Shake Co. * 172,000 3,724 Tidewater, Inc. 69,500 2,806 Tommy Hilfiger Corp. * 334,000 4,449 Vectren Corp. (g) 100,200 2,904 Veritas DGC, Inc. * (g) 111,000 3,419 Westar Energy, Inc. (g) 161,000 3,918 Continued 71 Small Cap Value Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Wintrust Financial Corp. (g) 63,400 $ 3,400 WPS Resources Corp. 47,100 2,720 ------------ Total Common Stocks 151,629 ------------ Investments in Affiliates (7.6%) Fifth Third Institutional Money Market Fund 12,491,507 12,492 ------------ Total Investments in Affiliates 12,492 ------------ Short-Term Securities Held as Collateral for Securities Lending (22.8%) Pool of various securities for Fifth Third Funds $ 37,661 37,661 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 37,661 ------------ Total Investments (Cost $177,946)+ - 122.1% 201,782 Liabilities in excess of other assets - (22.1)% (36,514) ------------ NET ASSETS - 100.0% $ 165,268 ============ See notes to schedules of portfolio investments and notes to financial statements. Multi Cap Value Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (97.3%) Alcoa, Inc. 50,000 $ 1,403 Alltel Corp. (g) 50,000 3,325 American Electric Power Co. 50,000 1,935 American Express Co. 50,000 2,750 American International Group, Inc. 80,000 4,816 American Power Conversion Corp. 60,000 1,687 Ameritrade Holding Corp. * 125,000 2,441 Anadarko Petroleum Corp. (g) 50,000 4,418 Andrew Corp. * (g) 140,000 1,539 Apache Corp. (g) 50,000 3,420 Applera Corp.- Celera Genomics Group * 250,000 3,085 Applied Materials, Inc. 265,000 4,892 Archer-Daniels-Midland Co. 115,000 2,638 Bank of America Corp. 60,000 2,616 Bank of New York Co., Inc. 50,000 1,539 Becton, Dickinson & Co. 40,000 2,215 Berkshire Hathaway, Inc. * 1,000 2,782 Big Lots, Inc. * (g) 215,000 2,789 BMC Software, Inc. * (g) 60,000 1,145 Bob Evans Farms, Inc. (g) 125,000 3,170 Borg Warner, Inc. 110,000 6,399 Bristol-Myers Squibb Co. (g) 150,000 3,747 Cadbury Schweppes PLC ADR 60,000 2,318 Charles Schwab Corp. (g) 250,000 3,425 ChevronTexaco Corp. 60,000 3,481 CIGNA Corp. 50,000 5,337 Coca-Cola Co. 40,000 1,750 Coherent, Inc. * (g) 100,000 3,403 Comverse Technology, Inc. * (g) 125,000 3,161 ConAgra, Inc. 200,000 4,542 ConocoPhillips 120,000 7,510 CSX Corp. 50,000 2,277 CVS Corp. 50,000 1,552 Discovery Holding Co.,A Shares * (g) 30,000 428 Dominion Resources, Inc. 15,000 1,108 Duke Energy Corp. (g) 110,000 3,249 E*TRADE Financial Corp. * 175,000 2,714 E. I. du Pont de Nemours & Co. 60,000 2,561 EMC Corp. * 165,000 2,259 Florida East Coast Industries, Inc. (g) 100,000 4,700 Foot Locker, Inc. 80,000 2,000 Furniture Brands International, Inc. (g) 135,000 2,587 Gannett, Inc. 30,000 2,189 General Dynamics Corp. 40,000 4,608 General Electric Corp. 135,000 4,658 Georgia Pacific Corp. 40,000 1,366 Global Industries, Ltd. * 150,000 1,472 Goodyear Tire & Rubber Co. * (g) 100,000 1,741 Harris Corp. 120,000 4,448 Hewlett-Packard Co. 160,000 3,939 Hillenbrand Industries, Inc. (g) 50,000 2,570 Home Depot, Inc. 100,000 4,350 Honda Motor Co., Ltd. 75,000 1,933 Honeywell International, Inc. 150,000 5,892 Horace Mann Educators Corp. (g) 220,000 4,396 Humana, Inc. * 150,000 5,978 IBM Corp. 50,000 4,173 Continued 72 Multi Cap Value Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks, continued Industrias Bachoco, S.A.ADR (g) 80,000 $ 1,575 Intel Corp. 150,000 4,071 Interpublic Group Cos., Inc. * (g) 125,000 1,563 J.C. Penney Co., Inc. 30,000 1,684 J.P. Morgan Chase & Co. 135,000 4,745 JAKKS Pacific, Inc. * (g) 110,000 1,885 Jefferson-Pilot Corp. (g) 100,000 5,017 K2, Inc. * (g) 75,000 998 Kellwood Co. 90,000 2,188 Kerr-McGee Corp. 39,815 3,194 KeyCorp 100,000 3,423 Kimberly-Clark Corp. 50,000 3,188 Kraft Foods, Inc. 100,000 3,055 Liberty Media Corp., Class A * 300,000 2,637 Lubrizol Corp. 85,000 3,740 Manpower, Inc. 25,000 1,195 Marathon Oil Corp. 120,000 7,002 Masco Corp. 85,000 2,882 May Department Stores Co. 110,000 4,515 McDonald's Corp. 120,000 3,739 McKesson, Inc. 25,000 1,125 Merck & Co., Inc. 125,000 3,883 Merrill Lynch & Co., Inc. 50,000 2,939 Methode Electronics, Inc. 165,000 2,086 Micron Technology, Inc. * 175,000 2,079 Millenium Pharmaceuticals, Inc. * (g) 220,000 2,273 Motorola, Inc. 225,000 4,765 Mylan Laboratories, Inc. 100,000 1,736 National City Corp. 50,000 1,846 Natuzzi S.p.A.ADR 125,000 1,049 Neiman Marcus Group, Inc., Class A 35,000 3,448 New York Times Co. (g) 50,000 1,576 Newell Rubbermaid, Inc. 30,000 746 Pall Corp. 160,000 4,955 Payless ShoeSource, Inc. * (g) 175,000 3,399 Pepco Holdings, Inc. 165,000 3,939 Pfizer, Inc. 150,000 3,974 Pier 1 Imports, Inc. (g) 80,000 1,138 Piper Jaffray Cos., Inc. * 40,000 1,376 Plum Creek Timber Co., Inc. 50,000 1,893 Royal Dutch Shell PLC ADR,A Shares * 60,000 3,677 Safeway, Inc. 200,000 4,860 Saks, Inc. * (g) 100,000 2,122 Schering-Plough Corp. 185,000 3,852 Schlumberger Ltd. 60,000 5,024 Scientific-Atlanta, Inc. 45,000 1,733 Snap-On, Inc. 30,000 1,100 Standard Register Co. 200,000 3,050 Stanley Works 75,000 3,670 Steris Corp. 50,000 1,359 Stewart & Stevenson Services, Inc. 130,000 3,010 Sun Microsystems, Inc. * (g) 300,000 1,152 SunTrust Banks, Inc. 25,000 1,818 SUPERVALU, Inc. (g) 150,000 5,310 Tecumseh Products Co., Class A (g) 125,000 3,750 The Walt Disney Co. 135,000 3,461 Thomas & Betts Corp. * 70,000 2,364 Continued Shares or Principal Amount Value ------------ ------------- Common Stocks, continued Transocean, Inc. * 160,000 $ 9,028 Trizec Properties, Inc. (g) 35,000 769 U.S. Bancorp 80,000 2,405 Union Pacific Corp. (g) 60,000 4,219 Verizon Communications, Inc. 100,000 3,423 Vishay Intertechnology, Inc. * 75,000 1,052 Whirlpool Corp. (g) 45,000 3,598 Wyeth 40,000 1,830 ------------ Total Common Stocks 368,983 ------------ Investment Companies (1.1%) iShares Russell 1000 Value Index (g) 20,000 1,374 iShares Russell 3000 Value Index (g) 10,000 898 John Hancock Bank & Thrift Opportunity Fund 200,000 1,992 ------------ Total Investment Companies 4,264 ------------ Investments in Affiliates (0.9%) Fifth Third Institutional Money Market Fund 3,296,945 3,297 ------------ Total Investments in Affiliates 3,297 ------------ Short-Term Securities Held as Collateral for Securities Lending (16.7%) Pool of various securities for Fifth Third Funds $ 63,202 63,202 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 63,202 ------------ Total Investments (Cost $325,012)+ - 116.0% 439,746 Liabilities in excess of other assets - (16.0)% (60,695) ------------ NET ASSETS - 100.0% $ 379,051 ============ See notes to schedules of portfolio investments and notes to financial statements. 73 Disciplined Large Cap Value Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (97.2%) Abbott Laboratories 239,296 $ 11,158 Alcoa, Inc. 152,500 4,278 Alltel Corp. (g) 119,542 7,950 American Electric Power Co. 317,013 12,269 American International Group, Inc. 177,591 10,691 Anadarko Petroleum Corp. (g) 92,120 8,139 Bank of America Corp. 291,432 12,706 Bank of New York Co., Inc. 475,300 14,630 Bristol-Myers Squibb Co. (g) 322,112 8,046 Cadbury Schweppes PLC ADR 360,350 13,924 Carnival Corp. (g) 192,800 10,103 Caterpillar, Inc. 234,284 12,630 ChevronTexaco Corp. 237,596 13,783 CIT Group, Inc. 288,264 12,724 ConAgra, Inc. 263,657 5,988 ConocoPhillips 342,805 21,456 CVS Corp. 282,086 8,753 Dow Chemical Co. 364,244 17,465 FPL Group, Inc. 192,262 8,290 Gannett, Inc. 193,455 14,114 General Dynamics Corp. 90,817 10,462 General Electric Corp. 143,800 4,961 Genuine Parts Co. (g) 143,391 6,566 H.J. Heinz Co. 287,800 10,585 Hartford Financial Services Group, Inc. 216,084 17,410 Health Management Associates, Inc., Class A 153,400 3,651 Hewlett-Packard Co. 415,892 10,239 Honda Motor Co., Ltd. 480,538 12,383 Honeywell International, Inc. 289,952 11,389 IBM Corp. 102,671 8,569 J.P. Morgan Chase & Co. 460,385 16,178 KeyCorp (g) 445,318 15,248 Laboratory Corp. of America Holdings * 72,000 3,648 Lubrizol Corp. 148,900 6,552 Manpower, Inc. (g) 96,900 4,632 Marathon Oil Corp. (g) 374,899 21,880 Masco Corp. 203,250 6,892 May Department Stores Co. 121,052 4,969 McDonald's Corp. 356,588 11,115 Merck & Co., Inc. 176,944 5,496 Merrill Lynch & Co., Inc. (g) 272,039 15,990 MetLife, Inc. 406,335 19,967 Micron Technology, Inc. * (g) 737,500 8,762 National City Corp. 242,200 8,940 NiSource, Inc. 231,224 5,616 Parker Hannifin Corp. 185,375 12,183 Pfizer, Inc. 634,400 16,812 R.R. Donnelley & Sons Co. 100,500 3,623 Royal Dutch Shell PLC ADR,A Shares * (g) 302,627 18,545 Safeway, Inc. 476,000 11,567 SunTrust Banks, Inc. (g) 258,241 18,779 United Technologies Corp. 177,600 9,004 Verizon Communications, Inc. 390,672 13,372 Weyerhaeuser Co. 71,893 4,959 ------------ Total Common Stocks 590,041 ------------ Continued Shares or Principal Amount Value ------------ ------------- Investments in Affiliates (2.6%) Fifth Third Institutional Money Market Fund 16,086,255 $ 16,086 ------------ Total Investments in Affiliates 16,086 ------------ Short-Term Securities Held as Collateral for Securities Lending (10.9%) Pool of various securities for Fifth Third Funds $ 66,221 66,221 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 66,221 ------------ Total Investments (Cost $534,868)+ - 110.7% 672,348 Liabilities in excess of other assets - (10.7)% (65,240) ------------ NET ASSETS - 100.0% $ 607,108 ============ See notes to schedules of portfolio investments and notes to financial statements. 74 LifeModel Aggressive Fund(SM) Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Investments in Affiliates(h) (100.0%) Fifth Third Disciplined Large Cap Value Fund 1,493,454 $ 22,521 Fifth Third Institutional Money Market Fund 78,741 79 Fifth Third Intermediate Bond Fund 415,185 4,069 Fifth Third International Equity Fund 765,926 8,264 Fifth Third Large Cap Core Fund 1,283,068 18,746 Fifth Third Mid Cap Growth Fund * 1,059,252 16,980 Fifth Third Multi Cap Value Fund 516,763 13,457 Fifth Third Quality Growth Fund 1,935,267 31,622 Fifth Third Small Cap Growth Fund * 706,895 11,013 Fifth Third Small Cap Value Fund * 386,687 8,824 ------------ Total Investments in Affiliates 135,575 ------------ Total Investments (Cost $111,191)+ - 100.0% 135,575 Other assets in excess of liabilities - 0.0% 36 ------------ NET ASSETS - 100.0% $ 135,611 ============ See notes to schedules of portfolio investments and notes to financial statements. LifeModel Moderately Aggressive Fund(SM) Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Investments in Affiliates(h) (100.1%) Fifth Third Bond Fund 1,722,840 $ 17,349 Fifth Third Disciplined Large Cap Value Fund 2,609,359 39,349 Fifth Third Institutional Money Market Fund 1,996,727 1,997 Fifth Third Intermediate Bond Fund 2,896,772 28,388 Fifth Third International Equity Fund 1,150,617 12,415 Fifth Third Large Cap Core Fund 2,169,267 31,693 Fifth Third Mid Cap Growth Fund * 1,892,990 30,345 Fifth Third Multi Cap Value Fund 920,819 23,978 Fifth Third Quality Growth Fund 3,363,551 54,960 Fifth Third Short Term Bond Fund 2,170,351 20,314 Fifth Third Small Cap Growth Fund * 1,218,978 18,992 Fifth Third Small Cap Value Fund * 654,493 14,936 ------------ Total Investments in Affiliates 294,716 ------------ Total Investments (Cost $252,869)+ - 100.1% 294,716 Liabilities in excess of other assets - (0.1)% (173) ------------ NET ASSETS - 100.0% $ 294,543 ============ See notes to schedules of portfolio investments and notes to financial statements. 75 LifeModel Moderate Fund(SM) Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Investments in Affiliates(h) (99.8%) Fifth Third Bond Fund 5,357,058 $ 53,946 Fifth Third Disciplined Large Cap Value Fund 3,214,141 48,469 Fifth Third Intermediate Bond Fund 9,410,488 92,223 Fifth Third International Equity Fund 1,138,727 12,287 Fifth Third Large Cap Core Fund 2,721,344 39,759 Fifth Third Mid Cap Growth Fund * 2,514,402 40,306 Fifth Third Multi Cap Value Fund 1,215,121 31,642 Fifth Third Quality Growth Fund 4,104,788 67,072 Fifth Third Short Term Bond Fund 6,792,787 63,580 Fifth Third Small Cap Growth Fund * 1,722,319 26,834 Fifth Third Small Cap Value Fund * 924,603 21,099 ------------ Total Investments in Affiliates 497,217 ------------ Total Investments (Cost $460,257)+ - 99.8% 497,217 Other assets in excess of liabilities - 0.2% 1,013 ------------ NET ASSETS - 100.0% $ 498,230 ============ See notes to schedules of portfolio investments and notes to financial statements. LifeModel Moderately Conservative Fund(SM) Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Investments in Affiliates(h) (100.1%) Fifth Third Bond Fund 1,369,363 $ 13,789 Fifth Third Disciplined Large Cap Value Fund 614,241 9,263 Fifth Third Institutional Money Market Fund 420,024 420 Fifth Third Intermediate Bond Fund 2,574,214 25,227 Fifth Third International Equity Fund 160,037 1,727 Fifth Third Large Cap Core Fund 442,101 6,459 Fifth Third Mid Cap Growth Fund * 431,472 6,916 Fifth Third Multi Cap Value Fund 209,665 5,460 Fifth Third Quality Growth Fund 781,024 12,762 Fifth Third Short Term Bond Fund 1,800,504 16,853 Fifth Third Small Cap Growth Fund * 291,138 4,536 Fifth Third Small Cap Value Fund * 156,247 3,566 ------------ Total Investments in Affiliates 106,978 ------------ Total Investments (Cost $96,723)+ - 100.1% 106,978 Liabilities in excess of other assets - (0.1)% (145) ------------ NET ASSETS - 100.0% $ 106,833 ============ See notes to schedules of portfolio investments and notes to financial statements. 76 LifeModel Conservative Fund(SM) Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Investments in Affiliates(h) (100.0%) Fifth Third Bond Fund 1,052,352 $ 10,597 Fifth Third Disciplined Large Cap Value Fund 169,971 2,563 Fifth Third Institutional Money Market Fund 561,365 561 Fifth Third Intermediate Bond Fund 1,978,000 19,385 Fifth Third International Equity Fund 56,138 606 Fifth Third Large Cap Core Fund 124,069 1,813 Fifth Third Mid Cap Growth Fund * 157,645 2,527 Fifth Third Multi Cap Value Fund 53,226 1,386 Fifth Third Quality Growth Fund 263,914 4,312 Fifth Third Short Term Bond Fund 1,404,436 13,146 Fifth Third Small Cap Growth Fund * 141,595 2,206 Fifth Third Small Cap Value Fund * 49,403 1,127 ------------ Total Investments in Affiliates 60,229 ------------ Total Investments (Cost $57,920)+ - 100.0% 60,229 Other assets in excess of liabilities - 0.0% 13 ------------ NET ASSETS - 100.0% $ 60,242 ============ See notes to schedules of portfolio investments and notes to financial statements. Strategic Income Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Common Stocks (6.3%) Abbott Laboratories 25,575 $ 1,193 Altria Group, Inc. 14,150 947 American Capital Strategies Ltd. 30,800 1,159 Bank of America Corp. 19,900 868 Chevron Corp. 8,430 489 Citigroup, Inc. 16,925 736 FPL Group, Inc. 13,650 589 General Electric Corp. 10,735 370 North Fork Bancorp., Inc. 10,500 288 Procter & Gamble Co. 11,030 614 Southern Co. 14,900 521 Sysco Corp. 19,025 686 U.S. Bancorp 10,000 301 Verizon Communications, Inc. 6,950 238 Wachovia Corp. 9,475 477 Wells Fargo & Co. 15,945 977 ------------ Total Common Stocks 10,453 ------------ Corporate Bonds (24.2%) AMVESCAP PLC, 5.38%, 2/27/13 $ 500 504 Bankers Trust New York, 7.25%, 10/15/11 1,000 1,127 Bear, Stearns Co., Inc., 4.65%, 7/2/18 1,000 938 Bear, Stearns Co., Inc., Series 2003-AC7, Class A2, 5.25%, 1/25/34 1,024 1,026 Citibank Credit Card Issuance Trust, 3.10%, 3/10/10 500 484 Comcast Cable, 7.13%, 6/15/13 500 564 Core Invest Grade Trust, 4.66%, 11/30/07 454 453 Countrywide Home Loans, 4.59%, 10/25/33 1,573 1,522 Countrywide Home Loans, 5.10%, 4/20/35(d) 744 737 Cullen/Frost Cap Trust I, 4.46%, 3/1/34 (d) 1,000 1,030 CVS Corp., 7.77%, 1/10/12 867 967 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 1,000 963 Emigrant Cap Trust I, 5.73%, 12/10/33 (d) 1,000 993 First Tennessee Cap II, 6.30%, 4/15/34 1,500 1,541 Ford Motor Credit Co., 7.00%, 10/1/13 1,500 1,457 Goldman Sachs Group, Inc., 5.25%, 10/15/13 1,000 1,014 HBOS PLC, 5.38%, 11/1/13 (d) 2,000 2,024 Hutchison Whampoa International, Ltd., 6.50%, 2/13/13 1,000 1,067 HVB Funding Trust I, 8.74%, 6/30/31 1,000 1,322 International Lease Finance Corp., 4.38%, 11/1/09 1,000 987 Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,619 Continued 77 Strategic Income Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Corporate Bonds, continued Lehman Brothers TRAINS, 6.50%, 8/15/08 (d)(e) $ 493 $ 504 Marsh & Mclennan Cos., Inc., 5.88%, 8/1/33 500 461 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.53%, 12/25/32 274 274 Motorola, Inc., 6.50%, 11/15/28 500 547 Pacific Gas & Electric, 4.20%, 3/1/11 1,000 968 Pemex Project Funding Master Trust, 7.88%, 2/1/09 1,000 1,085 Public Service Oklahoma, 4.85%, 9/15/10 500 501 Radian Group, Inc., 5.63%, 2/15/13 500 511 RBS Capital Trust, Class B, 6.80%, 3/31/08 500 516 SLM Corp., 4.27%, 4/1/09 (d) 1,000 972 SLM Corp., 4.54%, 2/1/10 (d) 1,000 967 SLM Corp., 5.65%, 11/21/13 (d) 1,000 988 Sprint Capital Corp, 8.38%, 3/15/12 1,500 1,779 TCI Communications, Inc., 7.88%, 8/1/13 1,100 1,283 Union Pacific Corp., 3.63%, 6/1/10 500 472 Union Planters Corp., 4.38%, 12/1/10 500 490 Washington Mutual Bank, 4.82%, 10/25/32 134 134 Washington Mutual Bank, Series 2003-AR10, Class A4, 4.08%, 10/25/33 1,500 1,487 Wells Fargo Mortgage Backed Securities Trust, 4.98%, 11/25/34 1,000 949 Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,758 ------------ Total Corporate Bonds 39,979 ------------ Foreign Bonds (1.2%) Korea Development Bank, 3.88%, 3/2/09 1,000 971 Russian Federation, 8.25%, 3/31/10 1,000 1,087 ------------ Total Foreign Bonds 2,058 ------------ Corporate Bond Equivalents (c) (39.0%) AAG Holding Co., Inc., $1.17 20,000 513 Abbey National PLC, Series B $1.84 24,900 660 Abbey National PLC, Series C $1.84 60,600 1,596 AMBAC Financial Group, Inc., $1.49 54,100 1,374 AMBAC Financial Group, Inc., $1.75 52,895 1,360 BAC Capital Trust I, $1.75 64,500 1,662 BAC Capital Trust VI, $1.75 48,600 1,283 Bank One Capital V, $2.00 76,300 1,943 BBC Capital Trust II, $2.13 31,000 819 Bear Stearns Capital Trust III, $1.95 58,900 1,508 Citigoup Capital VII, $1.78 124,925 3,237 Cleveland Electric Financial Trust I, $2.25 10,000 268 Consolidated Edison, $1.81 50,700 1,340 Corp-Backed Trust Certs (CBTCS), $1.53 60,000 1,497 Corp-Backed Trust Certs (CBTCS), $1.56 33,500 843 Corp-Backed Trust Certs (CBTCS), $1.80 15,800 401 Continued Shares Value ------------ ------------- Corporate Bond Equivalents (c), continued Corp-Backed Trust Certs (CBTCS), $1.97 2,200 $ 57 Corp-Backed Trust Certs (CBTCS), $2.06 7,800 201 Corp-Backed Trust Certs (CBTCS), $2.20 1,800 46 Corts Countrywide Capital II, $2.00 10,000 260 Corts Trust II Safeco Capital I, $2.18 10,000 260 Corts-First Union Capital II, $1.88 17,700 450 Corts-Sherwin Williams, $1.81 17,600 450 Corts-TR Verizon Global, $3.13 54,500 1,427 Developers Diversified Realty, $2.15 48,300 1,274 Dominion CNG Capital Trust I, $1.95 39,800 1,025 Duke Realty Corp. $1.67 30,000 754 Duke Realty Corp., $2.11 40,800 1,047 Duquesne Light Co., $1.68 24,000 639 Energy East Capital, $2.06 5,000 129 Entergy Arkansas, Inc., $1.50 80,600 2,070 Entergy Mississippi, Inc., $1.50 29,300 752 Equity Residential Properties, Series B, $2.28 19,900 506 Federal Realty Investment Trust, $2.13 43,300 1,131 Financial Security Assurance Holdings, $1.56 90,750 2,303 Fleet Capital Trust VI, $2.20 46,000 1,175 Fleet Captial Trust VII, $1.80 29,200 755 Ford Capital Trust Series II, $3.25 10,000 417 General Electric Capital Corp., $1.53 19,000 491 General Electric Capital Corp., $1.66 59,000 1,546 Glenborough Realty, Series A, $1.94 20,661 531 Harris Preferred Capital, Series A, $1.84 31,800 805 HRPT Properties Trust, $2.47 26,100 669 HRPT Properties Trust, Series B, $2.19 22,900 619 HSBC Finance Corp. $1.72 32,800 854 Huntington Preferred Cap, Inc., $1.97 15,507 447 ING Group NV, $1.80 41,200 1,089 Kimco Reality Preferred, $1.66 39,994 1,021 MBNA Corp., $1.88 28,400 730 MBNA Corp., $2.03 37,800 1,019 Merrill Lynch Preferred Capital, $0.99 20,000 497 ML Capital Trust III, $1.75 9,800 256 Morgan Stanley Capital II, $1.81 61,525 1,563 National Rural Utility CFC, $1.91 10,000 258 Nordstrom (CBTCS), $1.91 10,000 262 Preferred Plus Trust NAI-1, $2.01 4,400 113 PS Business Parks, Inc., $2.38 10,000 260 Public Credit & Repack Securities, $1.78 15,600 400 Public Storage, Inc., Series A, $2.45 15,000 420 Public Storage, Inc., Series S, $1.97 10,000 259 Puget Sound Energy Capital Trust, $2.10 13,700 354 Regions Financial Trust I, $2.00 66,500 1,701 Rouchester Gas & Electric, $1.66 42,800 1,151 Saturns JPM, $1.78 12,000 310 Stilwell Financial, $1.97 36,800 953 Suntrust Capital V, $1.76 46,600 1,203 Torchmark Capital Trust I, $1.94 58,819 1,518 USB Capital V, $1.81 14,100 365 Wachovia Funding, Series A, $1.81 79,000 2,275 Wells Fargo Capital Trust V, $1.75 18,600 482 Wells Fargo Capital Trust VI, $1.74 74,550 1,931 Wells Fargo Capital Trust VII, $1.46 33,500 838 ------------ Total Corporate Bond Equivalents 64,622 ------------ Continued 78 Strategic Income Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- Preferred Stocks (c) (4.6%) Fannie Mae, $1.77 8,800 $ 320 Fannie Mae, $2.91 8,500 418 First Tennessee Bank, $11.92 (e) 1,000 985 Freddie Mac, $2.50 20,000 845 Freddie Mac, $2.55 10,000 439 Freddie Mac, $2.85 25,500 1,230 Goldman Sachs Group, Inc., $1.16 40,000 996 Lehman Brothers, $1.92 50,000 1,245 Source Capital, $2.40 35,600 1,238 ------------ Total Preferred Stocks 7,716 ------------ Real Estate Investment Trusts (i) (10.4%) AMB Property Corp. 10,450 481 Developers Diversified Realty, Corp. 16,200 788 Duke-Weeks Realty Corp. 24,000 815 Equity Residential Properties 5,700 153 Equity Residential Properties Trust 24,450 988 Health Care Property Investors, Inc. 36,750 1,024 Kimco Realty Corp. 36,000 2,364 Mills Corp. 15,900 1,034 ProLogis 22,000 1,002 Simon Property Group, Inc. 34,004 2,711 Thornburg Mortgage, Inc. 45,100 1,339 Vornado Realty Trust 26,100 2,314 Weingarten Realty Investors 54,575 2,144 ------------ Total Real Estate Investment Trusts 17,157 ------------ U.S. Treasury Notes (1.2%) 7.00%, 7/15/06 $ 2,000 2,057 Total U.S. Treasury Notes 2,057 ------------ U.S. Government Agencies (2.4%) Fannie Mae (1.1%) 5.13%, 1/2/14 1,000 1,020 4.28%, 7/1/18 865 864 ------------ 1,884 ------------ Government National Mortgage Association (1.3%) 5.50%, 8/16/27 1,150 1,188 4.89%, 7/16/34 1,000 992 ------------ 2,180 ------------ Total U.S. Government Agencies 4,064 ------------ Investment Companies (8.5%) 1838 Bond Debenture Trading 127,000 2,375 American Income Fund, Inc. 135,400 1,124 Blackrock Income Trust 108,600 710 Blackrock North American Government Income 225,000 2,497 Eaton Vance Tax-Advantaged Dividend Income Fund 23,600 526 ING Prime Rate Trust 160,400 1,139 Continued Shares Value ------------ ------------- Investment Companies, continued MFS Government Markets Income Trust 217,400 $ 1,441 MFS Intermediate Income Trust 49,000 319 Pioneer Interest Shares 90,700 1,038 Templeton Global Income Fund, Inc. 61,374 536 Van Kampen Bond Fund 64,800 1,144 Van Kampen Senior Income Trust 152,000 1,245 ------------ Total Investment Companies 14,094 ------------ Investments in Affiliates (2.4%) Fifth Third Institutional Money Market Fund 4,029,611 4,030 ------------ Total Investments in Affiliates 4,030 ------------ Total Investments (Cost $158,201)+ - 100.2% 166,230 Liabilities in excess of other assets - (0.2)% (270) ------------ NET ASSETS - 100.0% $ 165,960 ============ See notes to schedules of portfolio investments and notes to financial statements. 79 Select Stock Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (99.9%) Agilent Technologies, Inc. * 20,000 $ 525 Best Buy Co., Inc. 9,000 689 Broadcom Corp., Class A * 18,000 770 Cintas Corp. 10,000 443 Cisco Systems, Inc. * 30,000 574 Coach, Inc. * 10,000 351 Comverse Technology, Inc. * 10,000 253 EMC Corp. * 63,000 862 Goldman Sachs Group, Inc. 6,000 644 Henry Schein, Inc. * 10,000 432 Illinois Tool Works, Inc. 6,000 514 Kinetic Concepts, Inc. * 10,000 600 L-3 Communications Holdings, Inc. 12,000 939 Lehman Brothers Holdings, Inc. 4,000 421 Linear Technology Corp. 15,000 583 Maxim Integrated Products, Inc. 9,000 377 Morgan Stanley 10,000 531 Nordstrom, Inc. 14,500 537 Office Depot, Inc. * 20,000 568 Rockwell Automation, Inc. 9,000 464 Station Casinos, Inc. 3,300 242 Teva Pharmaceutical Industries Ltd., ADR 28,000 879 Texas Instruments, Inc. 21,000 667 Varian Medical Systems, Inc. * 20,000 785 WellPoint, Inc. * 3,100 219 ------------ Total Common Stocks 13,869 ------------ Investments in Affiliates (0.1%) Fifth Third Institutional Money Market Fund 17,209 17 ------------ Total Investments in Affiliates 17 ------------ Total Investments (Cost $11,311)+ - 100.0% 13,886 Other assets in excess of liabilities - 0.0% 1 ------------ NET ASSETS - 100.0% $ 13,887 ============ See notes to schedules of portfolio investments and notes to financial statements. Technology Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stocks (100.5%) ADC Telecommunications, Inc. * (g) 47,500 $ 1,242 Agilent Technologies, Inc. * 72,500 1,902 Altera Corp. * 25,000 547 Amphenol Corp., Class A 20,250 902 ARM Holdings PLC ADR (g) 135,000 857 ASML Holding NV * (g) 75,000 1,320 ATMI, Inc. * (g) 23,500 748 Blackboard, Inc. * 20,000 493 Broadcom Corp., Class A * 35,000 1,496 Cadence Design Systems, Inc. * 110,000 1,770 Celgene Corp. * (g) 30,000 1,436 Compuware Corp. * 100,000 843 Comverse Technology, Inc. * (g) 47,750 1,208 Corning, Inc. * (g) 40,000 762 EMC Corp. * 80,000 1,095 Foxhollow Technologies, Inc. * (g) 10,000 513 Freescale Semiconductor, Inc., Class A * 40,000 1,021 Getty Images, Inc. * 15,000 1,211 Infosys Technologies Ltd.,ADR 2,500 178 Internet Security Systems, Inc. * (g) 25,000 569 Invitrogen Corp * (g) 17,500 1,501 Jabil Circuit, Inc. * 50,000 1,560 Juniper Networks, Inc. * 50,000 1,200 Linear Technology Corp. 25,000 972 LSI Logic Corp. * 5,000 49 Maxim Integrated Products, Inc. 24,350 1,020 McAfee, Inc. * 37,500 1,178 Microchip Technology, Inc. 30,000 932 Micron Technology, Inc. * 115,000 1,365 National Semiconductor Corp. 40,000 988 NAVTEQ Corp. * 29,750 1,308 NCR Corp. * 40,000 1,388 Network Appliance, Inc. * 51,750 1,320 Oracle Corp. * 5,000 68 SafeNet, Inc. * 32,500 1,111 SanDisk Corp. * 30,000 1,015 Sapient Corp. * (g) 162,060 1,261 Scientific-Atlanta, Inc. 30,000 1,155 Silicon Image, Inc. * (g) 85,000 1,005 Tellabs, Inc. * 200,000 1,943 Texas Instruments, Inc. 30,000 953 VeriSign, Inc. * 40,000 1,052 Vertex Pharmaceuticals, Inc. * 100,000 1,595 webMethods, Inc. * (g) 135,000 819 ------------ Total Common Stocks 46,871 ------------ Continued 80 Technology Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Short-Term Securities Held as Collateral for Securities Lending (19.1%) Pool of various securities for Fifth Third Funds $ 8,901 $ 8,901 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 8,901 ------------ Total Investments (Cost $53,178)+ - 119.6% 55,772 Liabilities in excess of other assets - (19.6)% (9,143) ------------ NET ASSETS - 100.0% $ 46,629 ============ See notes to schedules of portfolio investments and notes to financial statements. International Equity Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Common Stock(j) (0.1%) United States (0.1%) Synthes, Inc. 1,608 $ 174 ------------ Total Common Stock 174 ------------ Foreign Stocks(j) (91.2%) Australia (3.9%) Alumina, Ltd. 52,355 229 Amcor, Ltd. (g) 40,653 216 AMP, Ltd. 27,744 142 Ansell, Ltd. 903 7 Australia & New Zealand Banking Group, Ltd. 12,299 199 Australian Gas & Light Co. 4,391 47 BHP Billiton, Ltd. 161,874 2,396 BlueScope Steel, Ltd. 33,077 235 Boral, Ltd. 26,933 136 Brambles Industries, Ltd. (g) 22,535 141 Coca-Cola Amatil, Ltd. 16,401 97 Coles Myer, Ltd. 9,138 65 Commonwealth Bank of Australia 25,755 759 CSL, Ltd. 2,772 73 CSR, Ltd. 43,691 86 Foster's Group, Ltd. 40,577 167 Insurance Australia Group 38,467 177 James Hardie Industries NV 21,536 143 John Fairfax Holdings, Ltd. 9,472 31 Leighton Holdings, Ltd. 2,372 23 Lend Lease Corp., Ltd. 3,916 39 Macquarie Bank, Ltd. 4,756 225 Macquarie Infrastructure Group 71,386 215 Mayne Nickless, Ltd. 8,502 31 National Australia Bank, Ltd. 34,522 815 Newcrest Mining, Ltd. 14,995 185 Onesteel, Ltd. 25,640 53 Orica, Ltd. 12,926 186 Origin Energy, Ltd. 115,393 637 Paperlinx, Ltd. 20,812 55 Patrick Corp., Ltd. 10,538 46 QBE Insurance Group, Ltd. 14,599 186 Rinker Group, Ltd. 42,969 487 Rio Tinto, Ltd. (g) 14,042 519 Santos, Ltd. 86,430 703 Sonic Healthcare, Ltd. 1,295 13 Stockland Trust Group 446 2 Suncorp Metway, Ltd. 4,691 72 TABCORP Holdings, Ltd. 9,202 111 Telstra Corp., Ltd. 45,542 175 Transurban Group 5,359 29 Westfarmers, Ltd. 7,759 233 Westpac 18,835 281 Woodside Petroleum, Ltd. 68,957 1,570 Woolworths, Ltd. 24,176 299 ------------ 12,536 ------------ Continued 81 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Austria (1.0%) Bank Austria Creditanstalt 4,208 $ 446 Boehler-Uddeholm AG 600 91 Erste Bank Der Oesterreichischen Sparkassen AG 13,922 708 Flughafen Wein AG 1,211 78 Immofinanz Immobilien Anlagen * 26,674 245 Mayr-Melnhof Karton AG 500 72 Oesterreichische Elektrizitaetswirtschafts AG 544 162 OMV AG 13,339 621 RHI AG * 1,954 59 Telekom Austria AG (g) 19,977 403 Voest-Alpine Stahl AG 1,263 93 Wienerberger Baust 2,610 121 ------------ 3,099 ------------ Belgium (0.9%) Agfa Gevaert NV 1,931 53 Bekaert NV 325 26 Belgacom SA 3,263 115 Cumerio 955 16 Delhaize Group 1,553 95 Dexia 25,883 584 Fortis 36,918 1,077 Groupe Bruxelles Lambert SA 1,616 146 InBev NV 3,790 141 KBC Bancassurance Holding SA 3,615 288 Solvay SA 1,841 199 UCB SA 2,960 160 Umicore 717 63 ------------ 2,963 ------------ Bermuda (0.2%) Cheung Kong Infrastructure Holdings, Ltd. 14,000 44 Esprit Holdings, Ltd. 35,000 260 Johnson Electric Holdings, Ltd. 49,500 47 Kerry Properties, Ltd. 13,299 34 Li & Fung, Ltd. 56,000 118 SCMP Group, Ltd. 10,000 4 Shagri-La Asia, Ltd. 33,021 58 Yue Yuen Industrial Holdings, Ltd. 14,500 46 ------------ 611 ------------ Denmark (0.7%) A P Moller - Maersk AS 10 97 Danisco AS 900 59 Danske Bank 21,687 677 DSV AS 1,400 132 GN Store Nord AS 12,700 141 Novo Nordisk AS 9,680 501 Novozymes AS 2,950 150 TDC AS 5,900 265 Vestas Wind Systems AS * 5,550 102 William Demant Holdings AS * 1,000 48 ------------ 2,172 ------------ Finland (1.5%) Cargotec Corp., B Shares * 1,400 41 Fortum Oyj 6,249 114 Kesko Oyj, B Shares 3,423 93 Kone Oyj, B Shares * 1,400 95 Continued Shares Value ------------ ------------- Foreign Stocks, continued Finland, continued Metso Oyj, B Shares 3,935 $ 95 Neste Oil Oyj * (g) 1,912 53 Nokia Oyj 177,755 2,836 Outokumpo Oyj 7,841 108 Sampo Insurance Co. 6,221 95 Stora Enso Oyj 28,807 381 TietoEnator Oyj 4,643 151 UPM-Kym'mene Oyj 24,131 468 Uponor Oyj 1,070 21 Wartsila Corp. Oyj, B Shares 2,179 67 ------------ 4,618 ------------ France (8.2%) Accor SA 10,357 526 Alcatel * 47,961 583 Alstom * 128,511 131 Arcelor 17,466 375 Atos Origin SA * 797 57 Autoroutes du Sud de la France 3,373 192 AXA SA 48,211 1,313 BNP Paribas SA 33,015 2,381 Bouygues 10,300 450 Business Objects SA * 2,186 72 Cap Gemini * 3,563 119 Carrefour SA 20,115 947 Casino Guichard-Perrachon 1,826 128 CNP Assurances 1,284 86 Compagnie de Saint-Gobain 8,853 530 Compagnie Generale des Etablissements Michelin 2,481 153 Credit Agricole SA 13,864 379 Dassault Systems SA 1,711 87 Essilor International SA 1,806 131 Euronext NV 1,780 70 European Aeronautic Defence and Space Co. 6,870 230 France Telecom SA (g) 40,361 1,243 Gecina SA 1,553 176 Groupe Danone 8,202 809 Hermes International 262 54 Imerys SA 1,427 105 Klepierre 1,311 126 L'Air Liquide SA 4,380 777 L'Oreal SA 7,143 564 Lafarge SA 6,616 625 Lagardere Group SCA 3,038 219 LVMH Moet-Hennessy Louis Vuitton 5,295 439 Neopost SA 1,353 126 Peugeot SA 2,825 181 PPR SA 1,379 139 Publicis Groupe 2,099 71 Renault SA 2,908 266 Safran SA 2,724 60 Sanofi-Aventis 27,670 2,389 Schneider Electric SA 6,352 499 Societe BIC SA 1,091 61 Societe Generale-A 12,985 1,417 Societe Television Francaise 1 2,585 72 Continued 82 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued France, continued Sodexho SA 4,099 $ 146 STMicroelectronics NV 7,386 127 Suez SA 13,582 372 Technip-Coflexip SA 1,223 66 Thales SA (g) 2,847 115 Thomson 5,279 119 Total SA 17,256 4,313 Unibail Union Credit 2,119 293 Veolia Environnement 2,750 106 Vinci SA 4,057 329 Vivendi Universal 18,961 601 Zodiac SA 1,244 71 ------------ 26,016 ------------ Germany (7.1%) Adidas-Salomon AG 1,232 223 Allianz AG 8,902 1,127 Altana AG 2,696 141 BASF AG 23,033 1,632 Bayer AG 28,713 1,024 Bayerische Hypo- und Vereinsbank AG * 15,845 416 Beiersdorf AG 2,501 284 Celesio AG 3,035 245 Commerzbank AG 21,217 473 Continental AG 2,378 185 DaimlerChrysler AG 16,228 786 Deutsche Bank AG 25,078 2,170 Deutsche Boerse AG 6,255 549 Deutsche Lufthansa AG (g) 7,771 97 Deutsche Post AG 22,341 553 Deutsche Telekom AG 119,228 2,361 Douglas Holdings AG 737 28 E.ON AG 25,873 2,392 Epcos AG * 1,756 26 Fresenius Medical Care AG (g) 3,066 268 Heidelberger Zement AG 2,693 194 Henkel KGaA 2,849 267 Hypo Real Estate Holding AG 6,864 279 Infineon Technologies AG * 10,539 104 Karstadt AG * 516 7 Lanxess * 2,506 72 Linde AG 4,510 317 MAN AG 4,458 207 Merck KGAA 2,009 179 Metro AG 5,322 267 Muenchener Rueckver AG 1,769 206 Porsche AG 137 109 ProSiebenSat. 1 Media AG 1,593 29 Puma AG Rudolf Dassler Sport 430 108 RWE AG 11,664 777 SAP AG 6,866 1,178 Schering AG 5,878 370 Siemens AG 27,311 2,101 Thyssen Krupp AG 13,406 252 TUI AG 6,560 171 Volkswagen AG 4,244 230 Wincor Nixdorf AG 700 63 ------------ 22,467 ------------ Continued Shares Value ------------ ------------- Foreign Stocks, continued Great Britain (21.3%) Aegis Group PLC 28,037 $ 49 AMEC PLC 8,557 52 Anglo American PLC 51,227 1,300 ARM Holdings PLC 30,000 63 Arriva PLC 8,814 87 Associated British Ports Holdings PLC 14,385 118 AstraZeneca PLC 48,066 2,176 Astro All Asia Networks PLC * 73,100 112 Aviva PLC 69,014 792 BAA PLC 39,255 416 BAE Systems PLC 91,738 495 Balfour Beatty 15,493 95 Barclays PLC 191,044 1,866 Barratt Developments PLC 5,333 67 BBA Group PLC 22,083 118 Bellway PLC 2,805 42 Berkeley Group Holdings PLC * 2,939 46 BG Group PLC 97,719 807 BHP Billiton PLC 89,057 1,274 BOC Group PLC 19,248 365 Boots Group PLC 20,342 216 BP PLC 589,411 6,492 BPB PLC 15,065 189 Brambles Industries PLC 39,392 216 British Airways PLC * 18,337 89 British American Tobacco PLC 57,017 1,138 British Land Co. PLC 24,281 358 British Sky Broadcasting Group PLC 22,711 213 BT Group PLC 243,520 978 Bunzl PLC 11,575 106 Cable & Wireless PLC 70,849 198 Cadbury Schweppes PLC 67,007 644 Capita Group PLC 36,708 233 Carnival PLC 7,483 402 Centrica PLC 50,750 209 Cobham PLC 34,340 87 Compass Group PLC 90,221 390 Corus Group PLC * 134,835 111 Daily Mail & General Trust 6,795 79 Davis Service Group 11,805 92 De La Rue PLC 11,421 79 Diageo PLC 129,001 1,779 Dixons Group PLC 41,524 116 Electrocomponents PLC 14,913 66 EMAP PLC 5,680 84 EMI Group PLC 17,908 76 Enterprise Inns PLC 15,061 216 Exel PLC 13,635 225 Filtrona PLC * 8,708 35 FirstGroup PLC 18,862 106 FKI PLC 16,026 29 Friends Provident PLC 51,463 165 George Wimpey PLC 8,725 65 GKN PLC 15,751 73 Glaxosmithkline PLC 169,010 3,979 Group 4 Securicor PLC 62,734 174 Continued 83 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Great Britain, continued GUS PLC 19,417 $ 308 Hammerson PLC 13,235 199 Hanson PLC 26,687 268 Hays PLC 94,626 212 HBOS PLC 106,298 1,616 Hilton Group PLC 69,550 354 HSBC Holdings PLC 330,682 5,361 IMI PLC 14,697 115 Imperial Chemical Industries PLC 42,921 200 Imperial Tobacco Group PLC 16,496 423 InterContinental Hotels Group PLC 20,226 257 International Power PLC 1,655 6 Invensys PLC * 178,148 42 ITV PLC 78,159 165 J Sainsbury PLC 36,025 177 Johnson Matthey PLC 9,823 190 Kelda Group PLC 9,540 119 Kesa Electricals PLC 6,544 29 Kingfisher PLC 25,104 113 Land Securities Group PLC 21,777 532 Legal & General Group PLC 168,721 339 Liberty International PLC 11,669 198 Lloyds TSB Group PLC 145,223 1,228 Logica PLC 25,028 82 Marks & Spencer PLC 33,853 213 Meggitt PLC 15,833 86 Misys PLC 19,204 79 Mitchells & Butlers PLC 22,036 138 National Express Group PLC 7,134 110 National Grid Transco PLC 77,264 710 Next PLC 5,289 146 Pearson PLC 16,324 195 Peninsular & Oriental Steam Navigation Co. PLC 30,547 169 Persimmon PLC 6,010 84 Pilkington PLC 32,410 70 Prudential Corp. PLC 45,821 431 Punch Taverns PLC 10,528 138 Rank Group PLC 24,350 112 Reckitt Benckiser PLC 18,982 569 Reed Elsevier PLC 25,831 238 Rentokil Initial PLC 98,732 270 Reuters Holding PLC 30,298 205 Rexam PLC 18,065 155 Rio Tinto PLC 38,633 1,284 Rolls-Royce Group PLC * 43,208 254 Royal & Sun Alliance Insurance Group PLC 71,941 114 Royal Bank of Scotland Group PLC 65,575 1,949 Royal Dutch Shell PLC,A Shares * (g) 128,663 3,956 Royal Dutch Shell PLC, B Shares * 94,418 2,998 Sage Group PLC 40,600 165 Scot Power PLC 43,851 388 Scottish & Southern Energy PLC 20,631 354 Serco Group PLC 26,223 112 Severn Trent PLC 9,843 169 Signet Group PLC 33,301 68 Slough Estates PLC 18,663 175 Continued Shares Value ------------ ------------- Foreign Stocks, continued Great Britain, continued Smith & Nephew PLC 9,886 $ 94 Smiths Industries PLC 15,062 253 Stagecoach Group PLC 37,939 76 Tanjong PLC 17,900 67 Tate & Lyle PLC 22,987 187 Taylor Woodrow PLC 13,057 78 Tesco PLC 207,058 1,183 Tompkins PLC 28,037 135 Unilever PLC 117,278 1,133 United Business Media PLC * 6,155 59 United Utilities PLC 559 6 Vodaphone Group PLC 1,812,911 4,661 Whitbread PLC 10,985 191 William Hill PLC 17,381 176 Wolseley PLC 16,302 339 WPP Group PLC 20,004 212 Yell Group PLC 13,799 109 ------------ 67,643 ------------ Greece (0.4%) Alpha Bank A.E 10,080 279 EFG Eurobank Ergasias 6,029 193 National Bank of Greece SA 12,654 462 OPAP SA 7,500 244 Titan Cement Co. 2,800 95 ------------ 1,273 ------------ Hong Kong (1.5%) ASM Pacific Technology, Ltd. 1,500 7 Bank of East Asia, Ltd. 46,114 140 BOC Hong Kong Holdings, Ltd. 119,000 240 Cathay Pacific Airways, Ltd. 32,000 59 Cheung Kong Infrastructure Holdings, Ltd. 50,000 537 CLP Holdings, Ltd. 60,180 347 Hang Lung Properties, Ltd. 60,000 95 Hang Seng Bank, Ltd. 25,200 348 Henderson Land Development, Ltd. 24,000 121 Hong Kong & China Gas Co., Ltd. 130,348 271 Hong Kong Electric Holdings, Ltd. 46,000 218 Hong Kong Exchanges & Clearing, Ltd. 33,000 102 Hopewell Holdings, Ltd. 20,000 52 Hutchison Telecommunications International, Ltd. * 43,000 49 Hutchison Whampoa, Ltd. 68,000 663 Hysan Development Co., Ltd. 20,522 48 MTR Corp. 44,592 92 New World Development Co., Ltd. 72,989 97 PCCW, Ltd. 117,047 79 Sino Land Company, Ltd. 25,741 30 Sun Hung Kai Properties, Ltd. 43,136 444 Swire Pacific, Ltd. 31,000 296 Techtronic Industries Co., Ltd. 30,500 76 Television Broadcasts, Ltd. 9,000 54 Wharf Holdings, Ltd. 39,600 149 ------------ 4,614 ------------ Indonesia (0.0%) PT Mulia Industrindo Tbk * 19,000 1 ------------ Continued 84 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Ireland (0.9%) Allied Irish Banks PLC 1,135 $ 25 Allied Irish Banks PLC 40,467 876 Bank of Ireland 47,320 784 CRH PLC 3,678 104 CRH PLC 24,328 688 DCC PLC 1,498 33 Elan Corp. PLC * 13,100 96 Grafton Group PLC * 7,087 80 Independent News & Media PLC 7,163 22 Irish Life & Permanent PLC 1,760 32 Kerry Group PLC 2,168 54 ------------ 2,794 ------------ Italy (2.1%) Alleanza Assicurazioni SpA 5,236 60 Assicurazioni Generali 8,882 290 Autogrill SpA 4,518 64 Autostrade SpA 11,078 279 Banca Fideuram SpA 2,314 12 Banca Intesa SpA 83,871 407 Banca Intesa SpA-RNC 8,351 38 Banca Monte dei Paschi di Seina SpA 8,468 32 Banca Nazionale del Lavoro SpA * (g) 14,847 48 Banca Popolare di Milano 1,586 16 Banche Popolari Unite Scrl 1,219 25 Banco Popolare di Verona e Novara Scrl 8,553 153 Benetton Group SpA 1,544 15 Capitalia SpA 6,134 36 Enel SpA 13,009 111 ENI SpA 79,967 2,269 Fiat SpA * (g) 8,796 74 Finmeccanica SpA 10,241 187 Italcementi SpA 1,107 18 Luxottica Group SpA 3,560 82 Mediaset SpA 8,738 106 Mediobanca SpA 3,625 69 Mediolanum SpA 1,739 11 Pirelli SpA 87,520 92 Riunione Adriatica di Sicurta SpA 3,216 64 San Paolo IMI SpA 23,414 338 Seat Pagine Gialle SpA * 47,465 21 Snam Rete Gas SpA 2,184 12 Telecom Italia SpA 230,380 752 Telecom Italia SpA, RNC 141,485 380 Tiscali SpA * (g) 3,856 12 UniCredito Italiano SA 103,275 546 ------------ 6,619 ------------ Japan (23.1%) Acom Co., Ltd. 3,390 213 Advantest 3,000 239 AEON Co., Ltd. 23,000 371 AEON Credit Service Co., Ltd. 1,000 61 Aiful Corp. 3,000 216 Ajinomoto Co., Inc. 26,400 279 Alps Electric Co., Ltd. 7,000 105 Amada Co., Ltd. 10,000 71 Asahi Breweries, Ltd. 16,900 190 Asahi Glass Co., Ltd. 44,800 431 Continued Shares Value ------------ ------------- Foreign Stocks, continued Japan, continued Asahi Kasei Corp. 52,000 $ 234 Asatsu, Ltd. 800 22 Astellas Pharma, Inc. 18,600 604 Bank of Yokohama, Ltd. 52,000 293 Benesse Corp. 2,100 70 Bridgestone Corp. 36,000 699 Canon, Inc. 32,800 1,613 Casio Computer Co., Ltd. 14,000 179 Central Japan Railway Co. 58 418 Chiba Bank, Ltd. 31,000 199 Chubu Electric Power Co., Inc. (g) 20,200 488 Chugai Pharmaceutical Co., Ltd. 9,304 157 Citizen Watch Co., Ltd. (g) 12,100 107 Credit Saison Co., Ltd. 6,600 219 CSK Corp. 3,500 130 Dai Nippon Printing Co., Ltd. 18,600 291 Daicel Chemical Industries, Ltd. 4,000 22 Daiichi Pharmaceutical Co., Ltd. 10,100 230 Daikin Kogyo Corp. 5,400 131 Dainippon Ink & Chemicals, Inc. 25,000 76 Daito Trust Construction Co., Ltd. 4,000 148 Daiwa House Co., Ltd. 21,600 243 Daiwa Securities Group, Ltd. 129,000 757 Denki Kagaku Kogyo Kabushiki Kaisha, Ltd. 10,000 36 Denso Corp. 26,650 643 Dentsu, Inc. 24 59 Dowa Mining Co., Ltd. 23,000 156 East Japan Railway Co. 166 812 Ebara Corp. 13,800 55 Eisai Co., Ltd. 10,802 366 FamilyMart Co., Ltd. 2,300 67 Fanuc Co., Ltd. 6,800 481 Fast Retailing Co., Ltd. 3,100 182 Fuji Photo Film Co., Ltd. 18,600 579 Fuji Television Network 23 45 Fujikura 8,000 40 Fujitsu, Ltd. 71,000 395 Furukawa Electric Co., Ltd. * 24,800 109 Hankyu Department Stores, Inc. 2,000 14 Hirose Electric Co., Ltd. 1,300 135 Hitachi Chemical Co., Ltd. 1,000 17 Hitachi, Ltd. 129,000 785 Hokkaido Electric Power Co., Inc. 4,900 102 Hokuhoku Financial Group, Inc. 42,000 120 Honda Motor Co., Ltd. 38,451 1,982 Hoya Corp. 4,200 518 Isetan Co., Ltd. 8,500 118 Ishikawajima-Harima Heavy Industries Co., Ltd. * 35,000 53 Ito Yokado Co., Ltd. 12,900 426 Itochu Corp. 51,000 265 Itochu Techno-Science Corp. 1,900 63 Japan Airlines System Corp. (g) 34,000 91 Japan Real Estate Investment Corp. 15 128 Japan Tobacco, Inc. 29 413 JFE Holdings, Inc. 22,800 590 JGC Corp. 5,000 62 Continued 85 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Japan, continued Joyo Bank, Ltd. 30,000 $ 145 JS Group Corp. 7,900 128 JSR Corp. 6,200 123 Kajima Corp. 41,400 150 Kaneka Corp. 9,000 102 Kansai Electric Power Co., Inc. 28,300 597 Kao Corp. 24,000 549 Kawasaki Heavy Industries, Ltd. 29,000 57 Kawasaki Kisen Kaisha, Ltd. 2,000 12 Keihin Electric Express Railway Co., Ltd. 10,000 59 Keio Electric Railway Co., Ltd. 6,000 31 Keyence Corp. 1,300 312 Kikkoman Corp. 4,000 36 Kinki Nippon Railway Co., Ltd. 65,230 201 Kirin Brewery Co., Ltd. 36,400 339 Kobe Steel, Ltd. 114,000 234 Kokuyo Co., Ltd. 1,900 25 Komatsu, Ltd. 41,400 391 Komori Corp. 1,000 16 Konami Co., Ltd. 4,400 96 Konica Corp. 18,000 165 Kubota Corp. 59,000 343 Kuraray Co., Ltd. 15,500 139 Kurita Water Industries, Ltd. 1,900 30 Kyocera Corp. 6,600 463 Kyushu Electric Power Co., Inc. 12,600 271 Lawson, Inc. 2,100 75 Mabuchi Motor Co., Ltd. 1,400 78 Marubeni Corp. 44,800 166 Marui Co., Ltd. 22,900 335 Matsushita Electric Industrial Co., Ltd. 82,000 1,331 Matsushita Electric Works 5,000 42 Meiji Seika Co., Ltd. 4,000 20 Meitec Corp. 900 27 Millea Holdings, Inc. 79 1,033 Minebea Co., Ltd. 15,000 63 Mitsubishi Chemical Corp. 72,000 210 Mitsubishi Corp. 45,900 656 Mitsubishi Electric Corp. 75,800 398 Mitsubishi Estate Co., Ltd. 73,000 808 Mitsubishi Heavy Industries, Ltd. (g) 129,000 323 Mitsubishi Logistics Corp. 2,000 21 Mitsubishi Materials Corp. 76,000 189 Mitsubishi Rayon Co., Ltd. 22,000 88 Mitsubishi Tokyo Financial Group, Inc. 205 1,721 Mitsui & Co., Ltd. 50,800 490 Mitsui Chemicals, Inc. 17,000 103 Mitsui Fudosan Co., Ltd. 54,400 617 Mitsui Mining & Smelting Co., Ltd. 46,000 221 Mitsui O.S.K. Lines, Ltd. 7,000 45 Mitsui Sumitomo Insurance Co. 97,230 859 Mitsui Trust Holding, Inc. 32,513 327 Mitsukoshi, Ltd. 23,000 108 Mizuho Financial Group, Inc. 361 1,619 Murata Manufacturing Co., Ltd. 9,300 450 NEC Corp. 66,200 336 NEC Electronics Corp. 1,700 59 Continued Shares Value ------------ ------------- Foreign Stocks, continued Japan, continued Net One Systems Co., Ltd. 30 $ 77 New Oji Paper Co. 43,400 218 NGK Insulators, Ltd. 12,600 127 NGK Spark Plug Co., Ltd. 8,000 106 Nidec Corp. 1,900 205 Nikko Cordial Corp. 46,000 196 Nikon Corp. 12,000 134 Nintendo Co., Ltd. 4,500 472 Nippon Building Fund, Inc. 15 130 Nippon Express Co., Ltd. 33,600 144 Nippon Meat Packers, Inc. 7,600 87 Nippon Mining Holdings, Inc. 12,000 71 Nippon Oil Co., Ltd. 63,600 432 Nippon Paper Group, Inc. 44 157 Nippon Sheet Glass Co., Ltd. 17,000 70 Nippon Steel Corp. 294,800 741 Nippon Telegraph and Telephone Corp. 270 1,186 Nippon Yusen Kabushiki Kaisha 49,000 282 Nissan Chemical Industries, Ltd. 5,000 57 Nissan Motors Co., Ltd. 109,900 1,141 Nisshin Seifun Group, Inc. 4,000 42 Nisshin Steel Co., Ltd. 5,000 12 Nisshinbo Industries, Inc. 2,000 16 Nissin Food Products Co., Ltd. 3,300 82 Nitto Denko Corp. 7,300 400 Nomura Holdings, Inc. 80,400 952 Nomura Research Institute, Ltd. 1,100 107 NSK, Ltd. 26,000 137 NTN Corp. 18,000 101 NTT Data Corp. 65 215 NTT DoCoMo, Inc. 381 589 Obayashi Corp. 29,000 162 OBIC Co., Inc. 400 69 Oki Electric Industry Co., Ltd. 27,000 88 Olympus Optical Co., Ltd. 6,000 120 Omron Corp. 8,700 185 Onward Kashiyama Co., Ltd. 3,000 41 Oracle Corp. Japan 1,900 84 Oriental Land Co., Ltd. 2,200 128 Orix Corp. 4,100 606 Osaka Gas Co., Ltd. 76,200 240 Pioneer Electronic Corp. 6,901 101 Promise Co., Ltd. 4,200 255 Resona Holdings, Inc. * 196,000 344 Ricoh Co., Ltd. 27,000 411 Rohm Co., Ltd. 4,200 381 Sampo Japan Insurance, Inc. 34,000 321 Sankyo Co., Ltd. 15,804 311 Sanyo Electric Co., Ltd. (g) 66,000 163 Secom Co., Ltd. 7,600 337 Seiko Epson Corp. 3,800 112 Sekisui Chemical Co., Ltd. 10,000 64 Sekisui House, Ltd. 26,600 267 Seven-Eleven Japan Co., Ltd. 14,700 409 Sharp Corp. 34,200 517 Shimachu Co., Ltd. 1,900 47 Shimamura Co., Ltd. 1,100 88 Continued 86 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Japan, continued Shimano, Inc. 3,700 $ 117 Shimizu Construction 29,600 141 Shin-Etsu Chemical Co. 15,248 578 Shinsei Bank, Ltd. 24,000 129 Shionogi & Co., Ltd. 13,000 160 Shisiedo Co., Ltd. 14,800 202 Shizuoka Bank, Ltd. 25,000 210 Showa Denko KK 26,000 65 Showa Shell Sekiyu KK 7,000 75 Skylark Co., Ltd. 5,000 72 SMC Corp. 2,600 295 Softbank Corp. 10,300 419 Sony Corp. 29,698 970 Stanley Electric Co., Ltd. 3,600 57 Sumitomo Bakelite Co. 4,000 25 Sumitomo Chemical Co., Ltd. 54,600 277 Sumitomo Corp. 32,200 271 Sumitomo Electric Industries 22,400 249 Sumitomo Heavy Industries, Ltd. 8,000 38 Sumitomo Metal Industry, Ltd. 173,000 312 Sumitomo Metal Mining Co., Ltd. 43,600 301 Sumitomo Mitsui Financial Group, Inc. 295 1,944 Sumitomo Osaka Cement Co., Ltd. 7,000 18 Sumitomo Realty & Development Co., Ltd. 28,000 307 Sumitomo Trust & Banking 49,000 302 Taiheiyo Cement Corp. 8,000 23 Taisei Construction 25,000 83 Taisho Pharmaceutical Co. 2,913 57 Taiyo Yuden Co., Ltd. 3,000 34 Taka Shi Maya Co., Ltd. 15,000 145 Takara Holdings, Inc. 4,000 25 Takeda Pharmaceutical Co., Ltd. 35,300 1,805 Takefuji Corp. 3,000 194 Takuma Co., Ltd. 3,000 21 TDK Corp. 5,000 344 Teijin, Ltd. 35,400 162 Teikoku Oil Co., Ltd. 4,000 30 Terumo Corp. 7,900 221 The 77 Bank, Ltd. 17,000 100 The Bank of Fukuoka, Ltd. 23,000 132 The Daimaru, Inc. 14,000 127 THK Co., Ltd. 600 13 TIS, Inc. 2,251 66 Tobu Railway Co., Ltd. 25,600 95 Toho Co. 1,600 24 Tohoku Electric Power Co., Ltd. 15,700 345 Tokyo Broadcasting System, Inc. 4,600 79 Tokyo Electric Power Co., Inc. 43,400 1,038 Tokyo Electronics, Ltd. 7,300 393 Tokyo Gas Co., Ltd. 90,600 330 Tokyu Corp. 39,400 169 Tonengeneral Sekiyu K.K 4,000 42 Toppan Printing Co., Ltd. 18,600 181 Toray Co. 51,100 239 Toshiba Corp. 115,000 447 Tosoh Corp. 22,000 87 Toto, Ltd. 19,600 151 Continued Shares Value ------------ ------------- Foreign Stocks, continued Japan, continued Toyo Seikan Kaisha, Ltd. 7,000 $ 108 Toyota Industries Corp. 2,500 71 Toyota Motor Corp. 115,400 4,374 Trend Micro, Inc. 4,200 150 UJF Holdings, Inc. * 188 965 Uni-Charm Corp. 1,600 62 Uniden Corp. 3,000 49 UNY Co., Ltd. 4,000 42 USS Co., Ltd. 1,940 129 Wacoal Corp. 2,000 25 West Japan Railway Co. 17 57 World Co., Ltd. 850 35 Yahoo Japan Corp. 157 338 Yakult Honsha Co., Ltd. 4,000 73 Yamada Denki Co., Ltd. 5,000 282 Yamaha Corp. 4,300 69 Yamaha Motor Co., Ltd. 1,000 19 Yamato Transport Co., Ltd. 14,000 185 Yamazaki Baking Co., Ltd. 3,000 25 Yokogawa Electric Corp. 10,000 124 ------------ 73,700 ------------ Malaysia (0.9%) AMMB Holdings Berhad 98,300 73 Berjaya Sports Toto Berhad 51,800 63 British American Tobacco Malaysia Berhad 11,100 118 Commerce Asset-Holdings Berhad 93,800 139 Gamuda Berhad 29,700 37 Genting Berhad 25,000 133 Hong Leong Bank Berhad 50,600 75 IOI Corp. Berhad 50,000 147 Kuala Lumpur Kepong Berhad 26,800 51 Magnum Corp. Berhad 44,000 25 Malakoff Berhad 42,000 87 Malayan Banking Berhad 119,000 363 Malaysian International Shipping Corp. Berhad 37,700 186 Maxis Communications Berhad 50,000 133 Nestle Berhad 8,000 53 O.Y.L. Industries Berhad 5,400 51 Petronas Gas Berhad 10,000 22 PLUS Expressways Berhad 114,400 101 Proton Holdings Berhad 18,000 44 Public Bank Berhad 70,000 138 Resorts World Berhad 33,700 96 RHB Capital Berhad 93,000 58 Sime Darby Berhad 96,800 159 SP Setia Berhad 53,200 61 Telekom Malaysia Berhad 59,000 171 Tenaga Nasional Berhad 61,500 182 YTL Corporation Berhad 61,866 92 ------------ 2,858 ------------ Netherlands (2.8%) ABN AMRO Holding NV (g) 60,932 1,521 Aegon NV 43,824 626 Akzo NV 10,053 413 ASML Holding NV * 15,665 274 Continued 87 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Netherlands, continued Corio NV 2,746 $ 153 DSM NV 2,857 217 Elsevier NV 13,059 178 Heineken NV 7,173 228 ING Groep NV 60,490 1,826 Koninklijke KNP NV 54,384 473 Oce NV 3,368 49 Philips Electronics NV 28,333 767 Rodamco Cont Eurpope NV 2,253 191 TNT Post Groep NV 13,811 351 Unilever NV 17,606 1,179 Vedior NV 4,368 66 VNU NV 4,922 141 Wereldhave 1,120 119 Wolters Kluwer NV CVA 6,891 134 ------------ 8,906 ------------ New Zealand (0.0%) Auckland International Airport, Ltd. 7,148 11 Carter Holt Harvey, Ltd. 5,862 10 Contact Energy, Ltd. 2,639 14 Fisher & Paykel Appliances Holdings, Ltd. 1,810 5 Fisher & Paykel Industries, Ltd. 2,095 5 Fletcher Building, Ltd. 2,432 12 Sky City Entertainment Group, Ltd. 2,451 8 Telecom Corp. of New Zealand, Ltd. 12,253 52 The Warehouse Group, Ltd. 1,226 3 ------------ 120 ------------ Norway (0.6%) DnB Holding ASA 13,396 140 Norsk Hydro ASA 4,842 459 Norske Skogindustrier AG 5,100 90 Orkla SA 8,000 313 Schibsted ASA 1,250 34 Statoil ASA 23,600 508 Storebrand ASA 1,300 13 Tandberg ASA 5,800 66 Tandberg Television ASA * 3,000 38 Telenor ASA 23,000 198 Tomra Systems ASA 2,135 11 Yara International ASA 11,242 193 ------------ 2,063 ------------ Portugal (0.2%) Banco Commercial 88,339 226 BPI-SGPS SA 2,389 10 Brisa Auto-Estradas (g) 20,326 156 Energias de Portugal SA 12,673 34 Portugal Telecom SA 24,085 229 PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS, SA * 1,374 14 Sonae, SGPS SA 25,407 36 ------------ 705 ------------ Russia (1.0%) AO VimpelCom ADR * 9,500 365 GMK Norilsk Nickel ADR 4,700 325 Lukoil ADR 35,400 1,459 Mobile TeleSystems,ADR 8,000 284 Continued Shares Value ------------ ------------- Foreign Stocks, continued Russia, continued RAO Unified Energy Systems, GDR * 5,127 $ 161 Surgutneftegaz ADR 8,600 349 Tatneft ADR 3,900 157 ------------ 3,100 ------------ Singapore (2.0%) Ascendas Real Estate Investment Trust 65,000 92 Capitaland, Ltd. (g) 86,000 146 CapitaMall Trust 55,300 86 Chartered Semiconductor Manufacturing, Ltd. * (g) 86,000 66 City Developments, Ltd. 48,370 251 ComfortDelGro Corp., Ltd. 147,333 139 Creative Technology, Ltd. (g) 4,705 35 DBS Group Holdings, Ltd. 90,945 879 Fraser & Neave, Ltd. 15,000 147 Jardine Cycle & Carriage, Ltd. 10,000 80 Keppel Corp., Ltd. 45,000 339 Keppel Land, Ltd. 32,000 62 Neptune Orient Lines, Ltd. 41,000 88 Oversea-Chinese Banking Corp., Ltd. 86,745 672 Overseas Union Enterprises 3,735 21 Parkway Holdings, Ltd. 54,000 68 SembCorp Industries, Ltd. 70,784 117 SembCorp. Marine, Ltd. 48,000 77 Singapore Airlines, Ltd. 42,000 300 Singapore Exchange, Ltd. 66,911 88 Singapore Land, Ltd. 13,000 45 Singapore Post, Ltd. 114,000 68 Singapore Press Holdings, Ltd. 128,743 354 Singapore Technology Engineering, Ltd. 108,760 172 Singapore Telecommunications, Ltd. * 553,503 921 STATS ChipPAC, Ltd. * 85,000 58 United Overseas Bank, Ltd. 96,720 877 United Overseas Land, Ltd. 44,376 63 Venture Corp., Ltd. 18,445 177 ------------ 6,488 ------------ Spain (3.0%) Abertis Infraestructuras (g) 8,964 230 Acciona SA 908 93 Acerinox, SA 7,043 100 Actividades de Construccion y Servicios, SA 6,733 194 Altadis SA 12,240 516 Antena 3 Television SA * 1,458 29 Banco Bilbao Vizcaya-Argentari (g) 89,252 1,501 Banco Popular Espanol SA 25,027 299 Banco Santander Central Hispano SA (g) 124,959 1,545 Cintra Concesiones de Infraestructuras de Transporte SA 8,305 100 Endesa SA 13,718 306 Fomento de Construcciones y Contratas SA 1,054 59 Gas Natural SDG SA 18,973 564 Grupo Ferrovial SA 1,502 109 Iberdrola SA 11,707 298 Indra Sistemas SA 2,369 47 Industria de Diseno Textil SA 5,286 141 Repsol SA 22,187 620 Continued 88 International Equity Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares Value ------------ ------------- Foreign Stocks, continued Spain, continued Sociedad General De Aguas De Barcelona SA 2,318 $ 52 Telefonica SA 147,732 2,482 Union Electric Penosa SA 2,466 72 Vallehermoso SA 2,362 55 ------------ 9,412 ------------ Sweden (2.6%) Alfa Laval AB 700 12 Assa Abloy AB, Series B 11,750 160 Atlas Copco AB,A Shares 11,592 197 Atlas Copco AB, B Shares 6,900 106 Billerud 3,250 43 Electrolux AB, Series B 7,600 171 Eniro AB 4,000 45 Ericsson LM, Series B 566,537 1,948 Gambro AB, Series A 900 13 Getinge AB, B Shares 6,200 83 Hennes & Mauritz AB, Series B 12,050 429 Holmen AB 2,900 81 Modern Times Group MTG AB * 1,250 38 Nordea Bank AB 124,322 1,190 Sandvik AB 7,388 295 Scania AB, Series B 3,800 138 Securitas AB, Series B 24,100 407 Shanska AB, Series B 12,617 163 Skandia Forsakrings AB 16,831 95 Skandiaviska Enskil 21,620 384 SKF AB, Series B 11,800 139 Svenska Cellulosa AB, Series B 10,000 338 Svenska Handelsbanken, Series A 34,902 752 Svenskt Stal AB, Series A 1,300 33 Swedish Match AB 18,900 236 Tele2 AB 5,625 61 Telia 51,326 254 Volvo AB, Series A 3,533 143 Volvo AB, Series B (g) 8,010 335 WM-Data AB 7,800 23 ------------ 8,312 ------------ Switzerland (5.3%) Abb, Ltd. * 53,839 366 Adecco SA, Registered 2,329 116 Ciba Specialty Chemicals AG 2,170 130 Clariant AG * 7,539 104 Compagnie Finaciere Richemont AG 10,576 372 Credit Suisse Group 21,996 919 Geberit AG 130 87 Givaudan 258 155 Holcim 5,607 346 Kudelski SA 1,470 59 Logitech International SA * 3,160 123 Lonza Group AG 1,496 83 Nestle 12,343 3,383 Nobel Biocare Holding AG 763 161 Novartis AG, Registered 71,624 3,479 Roche Holdings AG, Genusscheine 21,346 2,899 Schindler Holding AG 195 79 Serono SA 264 177 Continued Shares or Principal Amount Value ------------ ------------- Foreign Stocks, continued Switzerland, continued Societe Generale de Surveillance Holdings SA 172 $ 129 Straumann AG 410 88 Swiss Reinsurance 2,066 131 Swisscom AG 604 199 Syngenta 4,027 420 The Swatch Group AG, Series B 806 115 UBS AG 31,061 2,548 Zurich Financial Services 1,428 253 ------------ 16,921 ------------ Total Foreign Stocks 290,011 ------------ Preferred Stocks(j) (0.1%) Germany (0.0%) Volkswagen AG, $1.11 2,141 88 ------------ Russia (0.1%) Surgutneftegaz ADR, $1.77 4,200 272 ------------ Total Preferred Stocks 360 ------------ Investment Companies(j) (5.1%) United States (5.1%) Excelsior Pacific Asia Fund 33 --# Franklin Mutual European Fund 72,960 1,537 Invesco Gold and Precision Metals Fund 59 --# iShares MSCI Emerging Markets Index Fund (g) 15,900 1,226 iShares MSCI Germany Index Fund (g) 132,400 2,516 iShares MSCI Hong Kong Index Fund (g) 398,500 5,253 iShares MSCI Switzerland Index Fund (g) 20,800 363 Matthews China Fund 55,918 823 Matthews Pacific Tiger Fund 80,040 1,418 Oakmark International Fund 30,250 679 Oakmark International Small Cap Fund 54,067 1,174 Scudder Latin America Fund 14,934 567 Vanguard International Growth Fund 14,470 277 Vanguard International Value Fund 9,181 296 ------------ Total Investment Companies 16,129 ------------ Short Term Securities Held as Collateral for Securities Lending (7.0%) Pool of various securities for Fifth Third Funds $ 22,137 22,137 ------------ Total Short Term Securities Held as Collateral for Securities Lending 22,137 ------------ Total Investments (Cost $326,479)+ - 103.5% 328,811 Liabilities in excess of other assets - (3.5)% (11,269) ------------ NET ASSETS - 100.0% $ 317,542 ============ See notes to schedules of portfolio investments and notes to financial statements. 89 Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Commercial Paper (8.3%) Cargill, Inc., 3.32%, 8/16/05 ** (f) $ 9,790 $ 9,766 Cargill, Inc., 3.38%, 8/30/05 ** (f) 2,000 1,994 E.I. du Pont de Nemours & Co., 3.19%, 8/11/05** (f) 2,190 2,188 Gannett, Inc., 3.31%, 8/18/05 ** (f) 440 439 Nestle Capital Corp., 3.24%, 8/11/05 ** (f) 7,065 7,059 Wells Fargo & Co., 3.25%, 8/11/05 ** (f) 4,500 4,496 ------------ Total Commercial Paper 25,942 ------------ Corporate Bonds (58.0%) AOL Time Warner, Inc., 7.70%, 5/1/32 480 600 Bank of Montreal-Chicago, 7.80%, 4/1/07 2,750 2,895 Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A3, 4.73%, 1/25/35 (d) 1,778 1,760 Bear Stearns Asset Backed Securities, Inc., Series 2004-HE3, Class 1A1, 3.48%, 5/25/31 (d)(f) 984 984 Bear Stearns Commercial Mortgage Securities, 4.75%, 2/13/46 7,500 7,411 Bear Stearns Commercial Mortgage Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 1,956 2,033 Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-T14, Class A4, 5.20%, 1/12/41 2,000 2,041 Columbus Southern Power, 4.40%, 12/1/10 500 490 Comcast Cable, 7.13%, 6/15/13 1,750 1,973 Countrywide Alternative Loan Trust, 6.50%, 9/25/34 (d) 923 942 Countrywide Asset-Backed Certificates, Series 2002-BC1, Class M1, 4.26%, 4/25/32 (d)(f) 1,426 1,428 Cox Communications, Inc., 5.50%, 10/1/15(g) 800 803 Credit Suisse First Boston Mortgage Securities Corp., Series 1997-C2, Class A2, 6.52%, 1/17/35 307 310 DaimlerChrysler, 8.50%, 1/18/31 (g) 600 769 Devon Energy Corp., 7.95%, 4/15/32 (g) 700 904 Duke Energy Corp., 6.45%, 10/15/32 850 937 Equity One ABS, Inc., Series 2004-1, Class AF4, 4.14%, 4/25/34 (d) 4,000 3,974 First Franklin Mortgage Loan, 2.47%, 7/25/33(d) 238 238 First Union-Lehman Brothers, 7.00%, 4/18/29 2,750 3,034 Firstenergy Corp., 6.45%, 11/15/11 1,070 1,151 Fleet/Norstar Group, 8.63%, 1/15/07 2,000 2,115 Ford Motor Credit Co., 7.00%, 10/1/13 (g) 950 923 Gazprom International, 7.20%, 2/1/20 1,000 1,074 General Electric Capital Corp., 6.75%, 3/15/32 1,055 1,265 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 3.54%, 12/25/20 (d)(f) 2,757 2,757 Continued Principal Amount Value ------------ ------------- Corporate Bonds, continued General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 5.00%, 10/25/33 $ 2,700 $ 2,669 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 4.34%, 11/1/34(d) 1,750 1,727 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, 3.50%, 3/25/35 (d)(f) 8,000 8,021 Goldman Sachs Group, Inc., 4.75%, 7/15/13 1,800 1,770 Greenwich Capital Commercial Funding Corp., Series 2002-C1, Class A4, 4.95%, 1/11/35 1,000 1,009 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 2,000 2,014 GS Mortgage Securities Corp. II, Series 2004-C1, Class A1, 3.66%, 10/10/28 5,131 5,001 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 4,900 4,888 Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 320 314 Homebanc Mortgage Trust, Series 2004-2, 3.91%, 12/25/34 (d)(f) 4,392 4,408 Household Finance Corp., 6.50%, 11/15/08 170 180 IndyMac Index Mortgage Loan Trust, Series 2005-AR9, 5.48%, 7/25/35 6,372 6,403 iStar Financial, Inc., 6.00%, 12/15/10 1,500 1,546 JP Morgan Chase Commercial Mortgage, 5.26%, 7/12/37 865 887 JP Morgan Chase Commercial Mortgage Securities, Series 200-CIBC, Class A2, 6.00%, 3/15/33 1,541 1,569 JP Morgan Mortgage Trust, 4.91%, 4/25/35(d) 4,787 4,758 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.88%, 2/25/35 1,255 1,246 JP Morgan Mortgage Trust, Series 2005-A2, 4.93%, 4/25/35 3,000 2,967 JP Morgan Mortgage Trust, Series 2005-A3, 5.17%, 6/25/35 3,856 3,862 Kroger Co., 6.20%, 6/15/12 500 530 LB-UBS Commercial Mortgage Trust, Series 2005-C3, 4.55%, 7/15/30 330 327 Lehman Brothers Holdings, 8.25%, 6/15/07 170 181 Merrill Lynch & Co., 4.25%, 2/8/10 (g) 1,000 982 Morgan Stanley Capital I, 5.11%, 6/15/40 3,200 3,239 Morgan Stanley Dean Witter Capital I, 4.74%, 11/13/36 5,200 5,174 Morgan Stanley Mortgage Loan Trust, 5.00%, 8/25/19 2,835 2,828 Motorola, Inc., 6.50%, 11/15/28 (g) 805 880 National City Bank, 7.25%, 7/15/10 3,000 3,345 National Rural Utilities, 7.25%, 3/1/12 125 143 Continued 90 Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds, continued Navistar Financial Corp. Owner Trust, 1.73%, 2/15/07 $ 213 $ 211 Navistar Financial Corp. Owner Trust, 3.42%, 4/15/08 (d)(f) 8,200 8,210 Navistar Financial Corp. Owner Trust, Series 2004-A, Class B, 2.46%, 3/15/11 1,527 1,482 NCNB Corp., 10.20%, 7/15/15 2,500 3,424 Norfolk Southern Corp., 5.59%, 5/17/25 130 132 Oncor Electric Delivery, 7.00%, 5/1/32 480 566 Pemex Master Trust, 6.13%, 8/15/08 825 846 Republic New York Corp., 7.00%, 3/22/11 2,000 2,198 Residential Accredit Loans, Inc., 3.58%, 3/25/34 (d)(f) 2,916 2,913 Residential Asset Mortgage Products, Inc., 3.23%, 5/25/24 (d)(f) 6,450 6,452 Residential Asset Securities Corp., 3.55%, 3/25/34 (d)(f) 1,943 1,944 SACO I Trust, Series 2004-2, Class A3, 3.78%, 10/25/34 (d)(f) 5,000 5,009 Science Applications International Co., 5.50%, 7/1/33 2,105 2,076 SLM Corp., 5.00%, 4/15/15 175 174 Structured Asset Securities Corp., 5.15%, 12/25/34 (d) 1,245 1,228 Swiss Bank Corp. - New York, 7.38%, 7/15/15 2,000 2,380 Thornburg Mortgage Securities Trust, Series 2004-2, Class A3, 3.59%, 6/25/44 (d)(f) 5,200 5,213 Trans-Canada Pipeline, 5.60%, 3/31/34 750 777 Travelers Property Casualty Corp., 7.75%, 4/15/26 85 103 Truck Retail Installment Paper Corp., 3.66%, 12/15/16 (d)(f) 6,950 6,955 UBS Preferred Funding Trust I, 8.62%, 10/29/49(d) 925 1,079 U.S. Bank NA, 6.30%, 2/4/14 345 380 Verizon Florida, Inc., 6.13%, 1/15/13 1,575 1,664 Washington Mutual, Series 2003-AR9, Class 1A6, 4.06%, 9/25/33 (d) 5,862 5,767 Washington Mutual, Series 2004-AR3, Class A-2, 4.24%, 6/25/34 1,984 1,961 Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, 4.75%, 12/25/33 (d) 1,550 1,522 YUM! Brands Inc., 7.70%, 7/1/12 1,250 1,446 ------------ Total Corporate Bonds 181,791 ------------ Foreign Bonds (1.7%) France Telecom, 8.75%, 3/1/31 650 895 Midland Bank PLC, 7.63%, 6/15/06 2,000 2,055 United Mexican States, 4.63%, 10/8/08 2,460 2,447 ------------ Total Foreign Bonds 5,397 ------------ Continued Principal Amount Value ------------ ------------- U.S. Government Agencies (47.7%) Fannie Mae (28.2%) 6.05%, 12/1/08 $ 2,881 $ 2,988 6.00%, 5/1/17 286 296 6.50%, 6/1/17 364 379 6.50%, 8/1/17 302 313 5.50%, 12/1/17 1,407 1,436 5.50%, 1/1/18 17 18 5.50%, 1/1/18 918 937 5.50%, 2/1/18 13 13 5.50%, 2/1/18 75 77 5.50%, 2/1/18 TBA 4,000 4,082 4.50%, 5/1/18 TBA 11,550 11,365 6.00%, 5/1/18 1,583 1,636 5.00%, 7/1/18 TBA 4,200 4,212 5.50%, 12/1/18 717 732 4.00%, 12/25/20 5,000 4,984 4.00%, 2/25/21 3,819 3,815 5.50%, 2/1/25 1,738 1,759 5.00%, 5/1/25 2,668 2,650 7.50%, 6/1/28 313 334 6.50%, 8/1/28 216 224 6.50%, 6/1/29 196 203 6.50%, 4/1/32 432 447 6.50%, 6/1/32 1,239 1,283 7.00%, 6/1/32 432 458 6.50%, 7/1/32 866 898 6.50%, 7/1/32 622 644 7.50%, 12/1/32 295 314 6.00%, 1/1/33 TBA 6,000 6,129 6.00%, 1/1/33 578 590 6.50%, 3/1/33 397 411 5.00%, 5/1/33 TBA 16,500 16,257 5.50%, 5/1/33 TBA 11,500 11,562 6.00%, 2/1/34 708 723 6.00%, 2/1/34 675 690 5.50%, 5/25/34 3,150 3,083 7.00%, 9/1/34 1,020 1,073 5.50%, 6/1/35 1,023 1,029 ------------ 88,044 ------------ Federal Home Loan Bank (1.5%) 4.06%, 8/25/09 4,121 4,032 4.00%, 2/25/10 835 819 ------------ 4,851 ------------ Freddie Mac (14.4%) 4.50%, 8/15/16 3,000 2,948 4.00%, 1/15/17 7,500 7,190 5.50%, 1/1/18 67 68 5.00%, 2/15/25 3,245 3,147 6.50%, 1/1/29 2,243 2,328 7.00%, 1/1/32 190 200 6.50%, 7/1/32 422 437 6.25%, 7/15/32 (g) 3,500 4,233 7.00%, 8/1/32 866 911 6.50%, 9/1/32 157 163 5.50%, 2/1/33 TBA 13,900 13,980 6.00%, 9/1/33 778 795 4.50%, 6/1/34 1,003 962 Continued 91 Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- U.S. Government Agencies, continued Freddie Mac, continued 4.50%, 9/1/34 $ 1,207 $ 1,157 6.00%, 10/1/34 4,546 4,644 6.50%, 8/30/35 (d) 2,000 1,996 ------------ 45,159 ------------ Government National Mortgage Association (3.6%) 4.50%, 11/16/29 2,387 2,344 5.00%, 7/1/33 TBA 4,000 3,976 5.50%, 10/1/33 TBA 5,000 5,064 ------------ 11,384 ------------ Total U.S. Government Agencies 149,438 ------------ U.S. Treasury Obligations (6.5%) U.S. Treasury Bonds (0.7%) 6.00%, 2/15/26 350 417 5.00%, 11/15/27 ** 2,900 1,052 5.38%, 2/15/31 (g) 535 608 ------------ 2,077 ------------ U.S. Treasury Inflation Protected Bonds (2.1%) 1.63%, 1/15/15 (g) 6,618 6,470 ------------ U.S. Treasury Notes (3.7%) 3.63%, 4/30/07 1,000 994 4.00%, 4/15/10 (g) 4,000 3,973 4.00%, 2/15/15 (g) 1,200 1,172 4.13%, 5/15/15 (g) 5,000 4,937 5.45%, 5/15/17 ** 1,080 638 ------------ 11,714 ------------ Total U.S. Treasury Obligations 20,261 ------------ Money Markets (1.9%) Dreyfus Cash Management Money Market Fund 988 1 Federated Prime Value Obligations Money Market Fund 5,897,434 5,897 ------------ Total Money Markets 5,898 ------------ Continued Principal Amount Value ------------ ------------- Short-Term Securities Held as Collateral for Securities Lending (9.3%) Pool of various securities for Fifth Third Funds $ 29,073 $ 29,073 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 29,073 ------------ Total Investments (Cost $415,990)+ - 133.4% 417,800 Liabilities in excess of other assets - (33.4)% (104,703) ------------ NET ASSETS - 100.0% $ 313,097 ============ See notes to schedules of portfolio investments and notes to financial statements. 92 Intermediate Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds (74.2%) ABN AMRO Bank NV, 7.30%, 12/1/26 $ 2,750 $ 2,824 Affiliated Computer Services, 4.70%, 6/1/10 1,860 1,820 Anthem, Inc., 3.50%, 9/1/07 2,375 2,325 Associated Bank, NA, 3.46%, 6/2/08 (d) 5,000 4,998 AT & T Broadband Corp., 8.38%, 3/15/13 1,750 2,104 Bank of Montreal-Chicago, 7.80%, 4/1/07 6,000 6,317 Bay View Auto Trust, Series 2005-LJ2, 4.55%, 2/25/14 2,880 2,880 BB&T Corp., 7.25%, 6/15/07 6,000 6,293 Bear Stearns Co., Inc., 5.70%, 1/15/07 (g) 3,000 3,056 Bear Stearns Commercial Mortgage Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 1,667 1,732 Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-T14, Class A3, 4.80%, 1/12/41 2,000 2,001 Berkshire Hathaway Financial, 4.75%, 5/15/12 3,000 2,979 Caterpillar Financial Asset Trust, Series 2005-A, Class A4, 4.10%, 6/25/10 2,435 2,411 Chaseflex Trust, Series 2005-2, 5.96%, 6/25/35 5,131 5,197 Chevron Phillips Chemical Co., 5.38%, 6/15/07 6,015 6,088 CIT Group, Inc., 5.13%, 9/30/14 2,000 1,994 Citicorp Mortgage Securities, Inc., Series 2004-4, 5.25%, 6/25/34 3,783 3,764 Citicorp Mortgage Securities, Inc., Series 2005-3, 5.50%, 4/25/35 2,282 2,271 Citigroup Commercial Mortgage Trust, Series 2004-C1, 5.46%, 4/15/40 (d) 4,835 5,010 Citigroup Commercial Mortgage Trust, Series 2005-EMG, 4.38%, 9/20/51 5,000 4,899 Citigroup, Inc., 5.00%, 9/15/14 2,106 2,109 CNH Equipment Trust, Series 2005-A, Class A4A, 3.43%, 6/15/12 (d) 2,435 2,436 Commerce Group, Inc., 5.95%, 12/9/13 (g) 1,000 1,027 Commercial Mortgage Pass-Through Certificate, Series 2004-LB3AC, Class B, 5.28%, 7/10/37 2,500 2,554 Commercial Mortgage Pass-Through Certificate, Series 2004-LB4A, Class A5, 4.84%, 10/15/37 (d) 3,700 3,667 Commercial Mortgage Pass-Through Certificate, Series 2005-LP5, Class A2, 4.63%, 5/10/43 2,450 2,437 Commercial Mortgage Acceptance Corp., Series 1998-C2, Class D, 6.73%, 9/15/30(d) 5,550 5,869 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 4,562 4,525 Continued Principal Amount Value ------------ ------------- Corporate Bonds, continued Countrywide Alternative Loan Trust, Series 2005-10CB, Class 1A6, 5.50%, 5/25/35 $ 2,480 $ 2,506 Countrywide Alternative Loan Trust, Series 2005-7CB, Class M, 5.50%, 4/25/35 2,388 2,375 Countrywide Home Loan, 4.00%, 3/22/11 2,325 2,212 Cox Communications, Inc., 7.75%, 11/1/10 1,550 1,729 Credit Suisse First Boston Mortgage Securities Corp., Series 1997-C2, Class A2, 6.52%, 1/17/35 273 275 Credit Suisse First Boston Mortgage Securities Corp., Series 2002-CKN2, 6.38%, 4/15/37 1,500 1,610 Credit Suisse First Boston Mortgage Securities Corp., Series 2004-C5, Class A3, 4.50%, 11/15/37 2,425 2,386 Crown Castle Towers LLC, Series 2005-1A, 4.64%, 6/15/35 4,000 3,935 DaimlerChrysler, 3.61%, 3/7/07 (d) 5,000 4,979 Deutsche Alternative-A Securities, Inc., Mortgage Loan, Series 2005-2. Class 2A1, 3.39%, 3/25/20 (d) 2,277 2,281 Deutsche Mortgage Securities Inc., Series 2005-1, 5.75%, 2/25/35 4,625 4,670 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 1,656 DLJ Commercial Mortgage Corp., Series 2000-CF1, Class A1B, 7.62%, 6/10/33 2,400 2,678 Duke Capital LLC, 4.37%, 3/1/09 (g) 2,000 1,982 Duke Energy Corp., 6.25%, 1/15/12 2,000 2,146 Duke Realty Corp., 3.70%, 12/22/06 (d) 2,880 2,882 Energen Corp., 7.63%, 12/15/10 1,000 1,109 Entergy Gulf States, 3.60%, 6/1/08 1,725 1,673 Fedex Corp., 7.25%, 2/15/11 2,000 2,221 First Franklin Mortgage Loan, 2.47%, 7/25/33(d) 297 297 First Horizon Mortgage Pass-Through Trust, Series 2004-FL1, Class 2A1, 3.02%, 2/25/35 (d) 1,662 1,660 First Union-Lehman Brothers, 7.00%, 4/18/29 2,900 3,200 Fleet Financial Group, 7.38%, 12/1/09 5,000 5,520 Ford Motor Credit Co., 7.00%, 10/1/13 (g) 1,960 1,904 Fund American Cos., Inc., 5.88%, 5/15/13 1,000 1,020 Gazprom International, 7.20%, 2/1/20 2,000 2,148 General Electric Capital Corp., 5.88%, 2/15/12(g) 6,000 6,359 General Electric Capital Credit Card Master Note Trust, Series 2005-3, 4.13%, 6/15/13 4,320 4,248 Continued 93 Intermediate Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds, continued Goldman Sachs Group, Inc., 5.00%, 10/1/14 $ 2,500 $ 2,490 Green Tree Financial Corp., Series 1998-6, Class A, 6.27%, 6/1/30 875 885 GTE California, Inc., 6.70%, 9/1/09 3,000 3,172 Heller Financial, 6.85%, 5/15/31 5,000 5,323 Hertz Corp., 6.63%, 5/15/08 1,400 1,395 Hertz Corp., 7.40%, 3/1/11 2,000 1,934 HSBC Bank USA, 4.63%, 4/1/14 2,000 1,957 HSBC Finance Corp., 6.38%, 10/15/11 2,000 2,144 Hyundai Auto Receivables Trust, Series 2004-A, Class A4, 3.54%, 8/15/11 3,000 2,930 Indiana Michigan Power, 5.05%, 11/15/14 2,035 2,012 IndyMac Home Equity Loan, Series 2002-B, Class B1, 5.75%, 10/25/33 (d) 1,395 1,412 International Lease Finance Corp., 3.13%, 5/3/07 3,700 3,612 International Lease Finance Corp., 5.88%, 5/1/13 2,500 2,598 International Paper Co., 5.50%, 1/15/14 1,500 1,506 JP Morgan Chase Commercial Mortgage Securities Corp., 5.26%, 7/12/37 2,525 2,590 JP Morgan Chase Commercial Mortgage Securities Corp., 4.63%, 3/15/46 3,365 3,353 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-LN1, Class A2, 4.92%, 10/15/37 9,500 9,553 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2004-LN2, Class A2, 5.12%, 7/15/41 4,420 4,476 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CB12, 4.74%, 9/12/37 2,500 2,498 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, 4.74%, 7/15/42 2,500 2,478 JP Morgan Chase Commercial Mortgage, Series 2001-CIB3, Class A1, 4.47%, 11/15/35 1,478 1,478 JP Morgan Commercial Mortgage Finance Corp., Series 2000-C9, 7.77%, 10/15/32 2,305 2,555 JP Morgan Commercial Mortgage Securities Corp., Series 2002-C3, Class A2, 4.99%, 7/12/35 5,045 5,103 JP Morgan Mortgage Trust, 4.91%, 4/25/35(d) 2,321 2,307 JP Morgan Mortgage Trust, Series 2004-A6, Class 3A1, 4.90%, 12/25/34 4,244 4,238 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.88%, 2/25/35 3,115 3,092 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A3, 4.88%, 2/25/35 2,400 2,369 JP Morgan Mortgage Trust, Series 2005-A1, Class 3A4, 5.05%, 2/25/35 6,218 6,339 Continued Principal Amount Value ------------ ------------- Corporate Bonds, continued JP Morgan Mortgage Trust, Series 2005-A1, Class 4A1, 4.79%, 2/25/35 $ 3,333 $ 3,291 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.39%, 4/25/35 (d) 4,779 4,659 JP Morgan Mortgage Trust, Series 2005-A3, 4.52%, 6/25/35 4,809 4,727 JP Morgan Mortgage Trust, Series 2005-A4, 5.19%, 7/25/35 2,400 2,394 JP Morgan Mortgage Trust, Series 2005-S1, Class B1, 6.26%, 1/25/35 2,433 2,518 JP Morgan RV Marine Trust, Series 2004-1A, Class A1, 3.12%, 4/15/11 1,541 1,523 Key Bank N.A., 5.80%, 7/1/14 2,000 2,110 Kinder Morgan Energy Partners, 5.00%, 12/15/13 1,500 1,483 Kroger Co., 5.50%, 2/1/13 (g) 1,425 1,456 Lehman Brothers Holdings, 8.25%, 6/15/07(g) 3,600 3,840 Lehman Brothers TRAINS, 6.50%, 8/15/08 (d)(e) 8,217 8,392 Long Beach Auto Receivables Trust, Series 2005-A, 4.25%, 4/15/12 2,660 2,631 Marathon Oil Corp., 6.13%, 3/15/12 2,000 2,142 MassMutual Global Funding II, 3.80%, 4/15/09 1,390 1,353 Master Adjustable Rate Mortgages Trust, Series 2003-5, 4.53%, 11/25/33 (d) 2,195 2,128 MBNA Master Credit Card Trust, 7.80%, 10/15/12 3,000 3,424 Mellon Financial Corp., 7.38%, 5/15/07 5,000 5,230 Merrill Lynch & Co., 5.45%, 7/15/14 1,500 1,554 Merrill Lynch Mortgage Investors, Inc., Series 2005-A1, Class 2A1, 4.67%, 12/25/34 2,192 2,179 Miller Brewing Co., 5.50%, 8/15/13 1,000 1,027 Morgan Stanley, 4.00%, 1/15/10 2,340 2,270 Morgan Stanley, 4.75%, 4/1/14 3,500 3,402 Morgan Stanley Capital I, Series 2004-IQ7, Class A2, 5.02%, 6/15/38 3,000 3,035 Morgan Stanley Capital I, Series 2004-IQ8, 4.50%, 6/15/40 2,400 2,379 National City Bank, 4.25%, 1/29/10 2,375 2,335 Navistar Financial Corp. Owner Trust, Series 2004-B, Class A4, 3.53%, 10/15/12 5,405 5,259 NCNB Corp., 9.38%, 9/15/09 5,000 5,856 Nelnet, Inc., 5.13%, 6/1/10 3,100 3,057 NiSource Finance Corp., 3.85%, 11/23/09(d) 2,710 2,720 Nomura Asset Acceptance Corp., Series 2004-AR4, Class 1A2, 4.93%, 12/25/34 1,883 1,878 Nomura Asset Acceptance Corp., Series 2005-AR1, Class 1A2, 5.40%, 12/25/09 3,483 3,531 Nomura Asset Acceptance Corp., Series 2005-AR2, Class 2A2, 5.59%, 5/25/35 (d) 2,314 2,365 Nomura Asset Acceptance Corp., Series 2005-AR3, 5.69%, 7/25/35 3,148 3,151 Continued 94 Intermediate Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds, continued Pemex Project Funding Master Trust, 7.38%, 12/15/14 $ 2,000 $ 2,210 Pepco Holdings, Inc., 6.45%, 8/15/12 1,000 1,077 PHH Corp., 7.13%, 3/1/13 1,000 1,086 PNC Mortgage Acceptance Corp., 7.33%, 12/10/32 5,000 5,472 PPG Industries, Inc., 6.50%, 11/1/07 30 31 PPL Electric Utilities, 5.88%, 8/15/07 2,000 2,051 Premark International, 6.88%, 11/15/08 1,000 1,075 Prestige Auto Receivables Trust, Series 2005-1A, 4.37%, 6/15/12 2,000 1,996 Providian Gateway Master Trust, Series 2004-DA, Class B, 3.55%, 9/15/11 1,825 1,782 Prudential Financial, Inc., 4.75%, 6/13/15 2,000 1,956 Prudential Securities Secured Financing, 6.48%, 11/1/31 6,924 7,256 PSEG Power, 5.00%, 4/1/14 1,500 1,488 RAAC, Series 2005-SP1, 5.25%, 9/25/34 2,326 2,320 Regions Financial Corp., 7.00%, 3/1/11 1,275 1,408 Renaissance Home Equity Loan Trust, 4.26%, 5/25/35 (d) 2,440 2,423 Renaissance Home Equity Loan Trust, Series 2005-2, 4.11%, 8/25/35 (d) 2,500 2,469 Rental Car Finance Corp., 4.59%, 6/25/11 2,475 2,454 Residential Accredit Loans, Inc., Series 2002-QS19, Class A8, 6.00%, 12/25/32 1,686 1,696 Residential Funding Mortgage Securities, 5.50%, 9/25/33 4,515 4,542 Ryder System, Inc., 5.00%, 4/1/11 1,000 991 Salomon Smith Barney, 7.13%, 10/1/06 5,000 5,164 Sempra Energy, 3.75%, 5/21/08 (d) 5,000 5,021 SLM Corp., 5.38%, 5/15/14 1,000 1,026 Sunoco, Inc., 4.88%, 10/15/14 1,500 1,471 Tampa Electric, 5.38%, 8/15/07 2,000 2,029 U.S. Bank, N.A., 3.75%, 2/6/09 3,000 2,913 UPFC Auto Receivables Trust, Series 2004-A, Class A3, 3.27%, 9/15/10 1,975 1,942 Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A4, 6.57%, 5/7/27 2,555 2,671 Washington Mutual Bank, 6.88%, 6/15/11 5,000 5,481 Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, 4.75%, 12/25/33 (d) 2,400 2,356 ------------ Total Corporate Bonds 429,694 ------------ Continued Principal Amount Value ------------ ------------- Foreign Bonds (0.2%) Korea Electric Power, 4.25%, 9/12/07 $ 1,000 $ 991 ------------ Total Foreign Bonds 991 ------------ U.S. Government Agencies (22.1%) Fannie Mae (7.4%) 5.50%, 5/2/06 (g) 5,000 5,051 2.13%, 10/5/06 2,500 2,442 3.42%, 3/15/07 10,000 9,884 3.67%, 5/8/07 7,110 7,049 3.38%, 5/15/07 (g) 4,745 4,679 6.25%, 1/25/08 923 949 4.92%, 7/25/20 3,195 3,191 5.09%, 7/1/34 3,200 3,229 5.24%, 8/1/34 209 211 4.86%, 3/1/35 5,523 5,497 ------------ 42,182 ------------ Federal Home Loan Bank (3.1%) 2.50%, 3/15/06 (g) 3,000 2,973 3.50%, 8/15/06 (g) 5,500 5,465 3.50%, 5/15/07 (g) 5,000 4,934 4.84%, 1/25/12 2,261 2,289 5.00%, 4/25/12 2,412 2,407 ------------ 18,068 ------------ Freddie Mac (6.7%) 7.22%, 6/14/06 3,000 3,081 3.88%, 11/10/08 (g) 8,935 8,777 3.88%, 1/12/09 (g) 5,525 5,422 4.38%, 7/30/09 4,000 3,947 6.25%, 3/5/12 (g) 8,500 8,757 5.00%, 11/15/19 3,225 3,207 5.18%, 5/1/35 3,821 3,839 6.50%, 8/30/35 (d) 2,000 1,996 ------------ 39,026 ------------ Government National Mortgage Association (4.9%) 9.50%, 12/15/09 1,658 1,760 3.96%, 9/16/21 1,987 1,955 4.02%, 12/16/21 4,742 4,671 4.60%, 10/16/24 2,500 2,452 5.25%, 9/16/27 2,675 2,725 4.45%, 8/16/32 2,500 2,439 4.81%, 8/16/32 2,450 2,437 0.99%, 6/17/45 11,079 687 4.59%, 8/16/45 5,000 4,886 0.62%, 6/16/46 15,000 717 0.89%, 4/16/47 47,721 3,534 ------------ 28,263 ------------ Total U.S. Government Agencies 127,539 ------------ Continued 95 Intermediate Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Shares or Principal Amount Value ------------ ------------- U.S. Treasury Obligations (3.0%) U.S. Treasury Inflation Protected Bonds (1.8%) 1.63%, 1/15/15 (g) $ 10,589 $ 10,352 ------------ U.S. Treasury Notes (1.2%) 3.88%, 7/15/10 2,000 1,978 4.13%, 5/15/15 (g) 4,900 4,838 ------------ 6,816 ------------ Total U.S. Treasury Obligations 17,168 ------------ Money Markets (0.0%) Dreyfus Cash Management Money Market Fund 655 1 Federated Prime Value Obligations Money Market Fund 116,715 117 ------------ Total Money Markets 118 ------------ Short-Term Securities Held as Collateral for Securities Lending (13.9%) Pool of various securities for Fifth Third Funds $ 80,375 80,375 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 80,375 ------------ Total Investments (Cost $658,047)+ - 113.4% 655,885 Liabilities in excess of other assets - (13.4)% (77,574) ------------ NET ASSETS - 100.0% $ 578,311 ============ See notes to schedules of portfolio investments and notes to financial statements. Short Term Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds (58.8%) Abbey National PLC, 6.69%, 10/17/05 $ 3,190 $ 3,209 ABN AMRO, 7.55%, 6/28/06 3,190 3,281 Aesop Funding II LLC, 2.75%, 7/20/07 (e) 3,990 3,947 Alabama Power Co., 2.80%, 12/1/06 1,190 1,167 Alcoa, Inc., 4.25%, 8/15/07 (g) 1,290 1,287 American Electric Power Co., 6.13%, 5/15/06 370 375 Australian Gas Light Co., 6.40%, 4/15/08(e) 3,210 3,337 Bank of America Commercial Mortgage, Inc., Series 2001-PB1, Class A1, 4.91%, 5/11/35(d) 2,479 2,489 Bank of America Commercial Mortgage, Inc., Series 2004-1, Class A1, 3.16%, 11/10/39(d) 3,481 3,363 Bank of America Mortgage Securities, 4.17%, 7/25/34 (d) 4,242 4,164 Bank of New York, 2.20%, 5/12/06 6,050 5,958 Bank One Issuance Trust, Series 2004-A1, Class A1, 3.45%, 10/17/11 810 784 Bear Stearns Commercial Mortgage Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 (d) 2,257 2,344 Bear, Stearns Co., Inc., Series 2003-AC7, Class A2, 5.25%, 1/25/34 2,057 2,062 Capital One Auto Finance Trust, 3.44%, 6/15/09 3,990 3,964 Centerpoint Energy, 6.50%, 2/1/08 1,600 1,666 CIT Group, Inc., 3.65%, 6/19/06 (d) 3,190 3,195 CNH Equipment Trust, 4.02%, 4/15/09 2,060 2,047 Comcast Cable Communication, 6.38%, 1/30/06 710 718 Cooper Cameron Corp., 2.65%, 4/15/07 780 753 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34(d) 3,447 3,419 Countrywide Financial, 3.50%, 12/19/05 3,190 3,184 Countrywide Home Loans, 5.10%, 4/20/35(d) 3,867 3,830 Credit Suisse First Boston Mortgage Securities Corp., Series 1997-C2, Class A2, 6.52%, 1/17/35 (d) 618 623 Credit Suisse First Boston, Inc., 7.75%, 5/15/06(e) 3,190 3,274 DaimlerChrysler NA Holdings, 6.40%, 5/15/06 1,525 1,549 DLJ Commercial Mortgage Corp., Series 1999-CG1, Class A1A, 6.08%, 3/10/32 (d) 1,971 2,007 Duke Energy Field Services, Inc., 7.50%, 8/16/05 1,700 1,702 Ford Motor Credit Co., 6.88%, 2/1/06 3,210 3,242 General Motors Acceptance Corp., Commercial Mortgage Securities, Inc., Series 1996-C1, 7.86%, 11/15/06 (e) 3,325 3,437 Continued 96 Short Term Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Corporate Bonds, continued General Motors Acceptance Corp., Mortgage Corp. Loan Trust, Series 2005-HE2, 4.62%, 11/25/35 (d) $ 4,000 $ 3,975 General Motors Acceptance Corp., Mortgage Corporation Loan Trust, 4.24%, 10/25/33(d) 4,170 4,121 Green Tree Financial Corp., Series 1998-6, Class A6, 6.27%, 6/1/30 (d) 1,535 1,551 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A2, 3.84%, 6/10/36 (d) 1,596 1,574 Harborview Mortgage Loan Trust, Series 2004-5, Class 2A6, 4.00%, 6/19/34 (d) 5,730 5,573 Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 1,858 1,827 Hertz Corp., 4.70%, 10/2/06 970 960 Homebanc Mortgage Trust, Series 2004-2, 3.91%, 12/25/34 (d) 3,540 3,553 Household Automotive Trust, Series 2002-3, Class A4A, 3.44%, 5/18/09 4,020 3,994 HSBC USA, Inc., 7.00%, 11/1/06 3,194 3,288 Hyundai Auto Receivables Trust, Series 2005-A, 4.18%, 2/15/12 3,000 2,958 IBM, Corp., 3.80%, 2/1/08 3,030 2,989 International Lease Finance Corp., 3.13%, 5/3/07 3,210 3,134 John Deere Owner Trust, Series 2004-A, Class A3, 2.32%, 12/17/07 2,150 2,115 JP Morgan Mortgage Trust, Series 2005-A1, 4.90%, 2/25/35 4,588 4,556 JP Morgan Mortgage Trust, Series 2005-A1, Class 4A1, 4.79%, 2/25/35 (d) 4,211 4,157 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.39%, 4/25/35 (d) 7,923 7,725 JP Morgan Mortgage Trust, Series 2005-A3, 5.17%, 6/25/35 (d) 6,179 6,191 JP Morgan Mortgage Trust, Series 2005-A4, Class 3A3, 5.19%, 7/25/35 (d) 4,000 3,991 Kraft Foods, Inc., 5.25%, 6/1/07 1,930 1,956 LB-UBS Commercial Mortgage Trust, Series 2002-C2, Class A1, 3.83%, 6/15/26(d) 3,277 3,266 MBNA America Bank NA, 6.50%, 6/20/06 790 805 MBNA America Bank NA, 3.64%, 5/5/08(d) 2,020 2,037 Merrill Lynch & Co., 3.63%, 9/18/06 (d) 4,670 4,675 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.53%, 12/25/32(d) 862 864 Morgan Stanley Dean Witter, 8.33%, 1/15/07 3,190 3,366 Morgan Stanley Dean Witter Capital I, 3.48%, 9/15/37 (d) 3,142 3,091 Morgan Stanley Dean Witter Capital I, 3.92%, 4/14/40 (d) 5,680 5,584 National Rural Utilities, 6.00%, 5/15/06 3,300 3,346 Continued Principal Amount Value ------------ ------------- Corporate Bonds, continued Navistar Financial Corp. Owner Trust, Series 2003-B, Class A4, 3.25%, 10/15/10 $ 3,990 $ 3,888 Navistar Financial Corp. Owner Trust, Series 2003-B, Class B, 3.79%, 10/15/10 1,257 1,237 Nissan Auto Lease Trust, 3.18%, 6/15/10 830 814 Pemex Finance, Ltd., 9.69%, 8/15/09 689 746 Protective Life US Funding, 3.70%, 11/24/08 1,590 1,551 RAAC, Series 2005-SP1, 5.25%, 9/25/34 3,147 3,139 Safeway, Inc., 2.50%, 11/1/05 1,840 1,832 Sempra Energy, 6.95%, 12/1/05 630 636 Societe Generale - New York, 7.40%, 6/1/06 2,110 2,162 Sprint Capital Corp., 7.13%, 1/30/06 650 658 Synovus Financial, 7.25%, 12/15/05 3,143 3,177 Time Warner, Inc., 6.13%, 4/15/06 1,190 1,204 UnitedHealth Group, Inc., 5.20%, 1/17/07(g) 3,390 3,424 Verizon Communications, 7.51%, 4/1/09 3,300 3,591 Washington Mutual, Inc., 4.82%, 10/25/32(d) 1,050 1,051 Washington Mutual, Inc., Series 2003-AR10, Class A4, 4.08%, 10/25/33 (d) 4,020 3,984 ------------ Total Corporate Bonds 206,693 ------------ Foreign Bonds (0.6%) British Telecom PLC, 7.88%, 12/15/05 650 659 Korea Electric Power, 4.25%, 9/12/07 (e) 810 803 Telecom Italia Capital, 4.00%, 11/15/08 650 637 ------------ Total Foreign Bonds 2,099 ------------ Municipal Bonds (0.3%) Ohio (0.3%) State Economic Development Revenue, Ohio Enterprise, Series 3, 4.05%, 3/1/11 (e) 1,060 1,032 ------------ Total Municipal Bonds 1,032 ------------ U.S. Government Agencies (27.3%) Fannie Mae (7.7%) 3.13%, 7/15/06 4,860 4,817 2.63%, 11/15/06 3,940 3,866 3.13%, 12/15/07 (g) 1,190 1,160 2.50%, 6/15/08 2,000 1,904 4.65%, 12/25/12 4,116 4,156 4.72%, 4/1/33 (d) 3,343 3,350 5.21%, 9/1/34 3,952 3,988 Continued 97 Short Term Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- U.S. Government Agencies, continued Fannie Mae, continued 5.01%, 4/1/35 (d) $ 3,900 $ 3,951 ------------ 27,192 ------------ Federal Home Loan Bank (8.3%) 2.60%, 1/27/06 (d) 4,470 4,446 1.88%, 6/15/06 3,540 3,474 2.88%, 8/15/06 (g) 8,150 8,050 2.38%, 10/2/06 4,490 4,400 3.75%, 8/15/07 3,670 3,630 4.00%, 10/27/08 5,220 5,146 ------------ 29,146 ------------ Freddie Mac (6.5%) 5.00%, 2/1/07 600 605 2.85%, 2/23/07 (g) 6,410 6,273 4.88%, 3/15/07 6,020 6,088 4.01%, 3/1/34 (d) 3,893 3,845 4.77%, 7/1/35 (d) 6,000 5,984 ------------ 22,795 ------------ Government National Mortgage Association (4.8%) 4.88%, 5/15/07 2,060 2,082 2.87%, 2/16/20 (d) 5,579 5,400 3.27%, 1/16/23 (d) 2,927 2,829 4.29%, 9/16/25 (d) 3,200 3,162 3.72%, 12/16/26 (d) 3,568 3,473 ------------ 16,946 ------------ Total U.S. Government Agencies 96,079 ------------ U.S. Treasury Obligations (10.0%) U.S. Treasury Inflation Protected Bonds (1.7%) 3.63%, 1/15/08 5,776 6,054 ------------ U.S. Treasury Notes (8.3%) 2.38%, 8/15/06 (g) 6,900 6,792 2.38%, 8/31/06 (g) 7,140 7,023 2.50%, 10/31/06 3,670 3,606 3.13%, 5/15/07 (g) 1,010 995 3.00%, 11/15/07 (g) 6,410 6,268 4.75%, 11/15/08 (g) 4,160 4,243 ------------ 28,927 ------------ Total U.S. Treasury Obligations 34,981 ------------ Continued Shares or Principal Amount Value ------------ ------------- Money Markets (2.4%) Dreyfus Cash Management Money Market Fund 74,427 $ 74 Federated Prime Value Obligations Money Market Fund 8,211,450 8,211 ------------ Total Money Markets 8,285 ------------ Short-Term Securities Held as Collateral for Securities Lending (11.3%) Pool of various securities for Fifth Third Funds $ 39,788 39,788 ------------ Total Short-Term Securities Held as Collateral for Securities Lending 39,788 ------------ Total Investments (Cost $393,549)+ - 110.7% 388,957 Liabilities in excess of other assets - (10.7)% (37,569) ------------ NET ASSETS - 100.0% $ 351,388 ============ See notes to schedules of portfolio investments and notes to financial statements. 98 U.S. Government Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- U.S. Government Agencies (99.6%) Fannie Mae (36.5%) 2.00%, 1/15/06 $ 1,700 $ 1,686 5.50%, 5/2/06 1,000 1,010 5.25%, 6/15/06 1,500 1,515 6.25%, 1/25/08 1,891 1,945 4.00%, 9/2/08 1,000 987 6.38%, 6/15/09 1,100 1,178 6.63%, 9/15/09 1,000 1,084 4.62%, 4/25/10 900 905 4.40%, 12/25/12 875 869 5.13%, 1/2/14 2,000 2,040 5.00%, 7/1/18 TBA 2,000 2,006 5.50%, 6/1/33 TBA 2,000 2,011 4.31%, 1/1/35 2,220 2,208 3.99%, 3/25/40 (d) 1,925 1,905 3.71%, 8/25/44 (d) 1,749 1,749 ------------ 23,098 ------------ Federal Farm Credit Bank (1.6%) 6.60%, 7/7/06 1,000 1,023 ------------ Federal Home Loan Bank (11.5%) 3.16%, 8/9/05 **(f) 2,020 2,018 2.50%, 3/15/06 2,000 1,982 6.09%, 6/2/06 1,500 1,525 4.06%, 8/25/09 824 806 4.84%, 1/25/12 942 954 ------------ 7,285 ------------ Financing Corporation (7.9%) 3.59%, 4/5/09 ** 2,000 1,707 4.21%, 12/6/11 ** 2,000 1,511 4.81%, 6/6/15 ** 2,000 1,260 6.37%, 11/11/17 ** 1,000 553 ------------ 5,031 ------------ Freddie Mac (25.3%) 5.25%, 1/15/06 2,575 2,591 2.75%, 3/15/08 1,450 1,399 5.50%, 7/15/10 1,000 1,017 6.88%, 9/15/10 2,000 2,226 5.88%, 3/21/11 1,000 1,060 4.75%, 10/11/12 (f) 2,000 1,992 4.50%, 11/15/12 1,000 997 4.00%, 12/15/21 753 748 5.00%, 12/15/32 1,047 999 5.00%, 1/15/34 1,000 964 6.50%, 8/30/35 (d) 2,000 1,996 ------------ 15,989 ------------ Government National Mortgage Association (15.0%) 3.59%, 11/16/17 474 463 3.96%, 9/16/21 993 977 3.27%, 1/16/23 884 855 4.39%, 8/30/25 1,000 995 4.50%, 12/16/25 2,000 2,002 5.50%, 2/20/31 2,000 2,015 5.50%, 12/20/32 1,000 1,001 5.50%, 11/20/33 1,000 1,001 1.00%, 6/17/45 2,988 185 ------------ 9,494 ------------ Continued Shares or Principal Amount Value ------------ ------------- Tennessee Valley Authority (1.8%) 6.79%, 5/23/12 $ 1,000 $ 1,131 ------------ Total U.S. Government Agencies 63,051 ------------ U.S. Treasury Obligations (9.4%) U.S. Treasury Inflation Protected Bonds (3.1%) 1.63%, 1/15/15 2,036 1,991 ------------ U.S. Treasury Notes (6.3%) 5.50%, 2/15/08 800 828 5.63%, 5/15/08 1,000 1,041 5.00%, 8/15/11 1,000 1,045 4.75%, 5/15/14 1,000 1,035 ------------ 3,949 ------------ Total U.S. Treasury Obligations 5,940 ------------ Money Markets (1.6%) Dreyfus Government Cash Management Money Market Fund 164 --# Federated Government Obligations Money Market Fund 998,354 998 ------------ Total Money Markets 998 ------------ Total Investments (Cost $70,356)+ - 110.6% 69,989 Liabilities in excess of other assets - (10.6)% (6,685) ------------ NET ASSETS - 100.0% $ 63,304 ============ See notes to schedules of portfolio investments and notes to financial statements. 99 Municipal Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds (100.2%) Arizona (4.1%) Greater Arizona Development Authority, 6.00%, 8/1/13, (Callable 8/1/08 @ 102) $ 1,070 $ 1,173 Sedona, Excise Tax Revenue, 4.00%, 7/1/17, (Callable 7/1/15 @ 100) 1,000 994 ------------ 2,167 ------------ California (9.2%) Beverly Hills Unified School District, 5.00%, 8/1/26, (Callable 8/1/15 @100) 1,000 1,062 Cal Poly Pomona Foundation, Inc., 5.50%, 2/1/20, (Callable 2/1/11 @ 101) 265 294 Imperial Community College District, 5.00%, 8/1/26, (Callable 8/1/15 @ 100) 1,000 1,066 La Canada University School District, Series A, GO, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 1,000 1,117 Placentia -Yorba Linda Union School District, Series B, GO, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 1,000 1,108 Sacramento County Sanitation Financing Authority, 6.00%, 12/1/15, (Callable 12/1/10 @ 101) 250 280 ------------ 4,927 ------------ Colorado (12.2%) Boulder Sales and Use Tax, Series A, 6.00%, 12/15/18, (Callable 12/15/09 @ 101) 2,000 2,235 Denver City & County Airport Revenue, 5.00%, 11/15/08 1,020 1,071 Douglas County School District No.1, GO, 5.75%, 12/15/21, (Callable 12/15/14 @ 100) 1,000 1,152 E-470 Public Highway Authority Revenue, Series C, 6.00%, 9/1/07 1,000 1,062 University of Colorado, Enterprise System Revenue, 5.00%, 6/1/25, (Callable 6/1/15 @ 100) 1,000 1,064 ------------ 6,584 ------------ Florida (1.1%) Jupiter, Community Center Project, 5.50%, 7/1/21 500 586 ------------ Idaho (2.1%) University of Idaho, 5.00%, 4/1/18, (Callable 4/1/15 @ 100) 1,055 1,142 ------------ Illinois (7.8%) Chicago Metropolitan Water Reclamation District-Greater Chicago, Capital Improvements GO, 7.25%, 12/1/12 500 620 Chicago Single Family Mortgage Revenue, Series A, (AMT), 4.70%, 10/1/17, (Callable 4/1/09 @ 102) 230 231 Development Finance Authority, Elmhurst Community School, 6.38%, 1/1/17, (Prerefunded 1/1/11 @ 100) 1,700 1,956 State GO, 5.88%, 10/1/17, (Callable 1/1/09 @ 100) 300 330 Continued Principal Amount Value ------------ ------------- Municipal Bonds, continued Illinois, continued State Sales Tax Revenue, 5.00%, 6/15/08 $ 1,000 $ 1,052 ------------ 4,189 ------------ Iowa (4.5%) Finance Authority, Private College Revenue, Drake University Project, 6.50%, 12/1/11 2,055 2,399 ------------ Kansas (2.0%) Sedgwick & Shawnee Counties, Single Family Revenue, Series A-5, (AMT), 3.00%, 12/1/27, (Callable 12/1/14 @ 101) 985 1,068 ------------ Kentucky (1.5%) Fayette County School District Finance Corp., 3.75%, 4/1/11 205 208 Fayette County School District Finance Corp., 4.00%, 4/1/13 570 583 ------------ 791 ------------ Maine (4.1%) Housing Authority Management, Series F-2 (AMT), 2.55%, 11/15/05 2,190 2,184 ------------ Massachusetts (1.0%) Boston Economic Development & Industrial Corp., 4.50%, 6/1/30, (Callable 6/1/10 @ 100) 500 524 ------------ Michigan (12.1%) Grand Ledge Public School District, 5.00%, 5/1/22, (Callable 5/1/15 @ 100) 1,000 1,072 Higher Education Student Loan Authority Revenue, Series XII-W (AMT), 4.75%, 3/1/09 1,000 1,046 Kent Hospital Financial Authority Revenue, Spectrum Health, Series A, 5.50%, 1/15/13, (Prerefunded 7/15/11 @ 101) 2,125 2,383 Kent, Hospital Financial Authority Revenue, Spectrum Health, Series B, 5.00%, 7/15/11 375 402 State Hospital Financial Authority Revenue, Marquette General Hospital Obligations Group-A, 5.00%, 5/15/13 500 526 Strategic Fund, Hope Network Project, Series B, 5.13%, 9/1/13, (Callable 9/1/08 @ 102) 1,000 1,062 ------------ 6,491 ------------ Minnesota (4.8%) Becker Independent School District No. 726, 6.00%, 2/1/21, (Callable 2/1/10 @ 100) 1,000 1,108 St. Paul, Housing & Redevelopment Authority Revenue, Smith Avenue Transit Center, 3.50%, 6/1/12, (Callable 6/1/10 @ 100) 500 490 Continued 100 Municipal Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds, continued Minnesota, continued State Housing Finance Agency, Residential Housing, (AMT), 3.40%, 7/1/12 $ 1,000 $ 952 ------------ 2,550 ------------ Missouri (5.0%) Greene County School District, 6.20%, 3/1/18, (Callable 3/1/10 @ 100) 2,400 2,679 ------------ Nebraska (3.1%) Omaha Series A, GO, 6.50%, 12/1/13 1,365 1,646 ------------ New Mexico (2.0%) Mortgage Financial Authority, Single Family Mortgage, (AMT), 3.50%, 7/1/36 1,000 1,074 ------------ New York (2.9%) Environmental Facilties Corp., Solid Waste Disposition Revenue, Series A, 2.90%, 5/1/12 500 498 Thruway Authority, Series 1997 B, 6.00%, 4/1/07 1,000 1,049 ------------ 1,547 ------------ North Dakota (2.2%) State Water Commission, 4.25%, 8/1/15 1,130 1,172 ------------ Oklahoma (2.0%) Tulsa International Airport (AMT), 5.50%, 6/1/10 1,000 1,073 ------------ Oregon (4.9%) Marion County, 5.50%, 6/1/21 1,315 1,521 Sunrise Water Authority Revenue, 5.25%, 3/1/24, (Callable 3/1/14 @ 100) 1,000 1,089 ------------ 2,610 ------------ Pennsylvania (6.7%) Chester County, Industrial Development Authority Revenue,Archdiocese of Philadelphia, 2.27%, 7/1/31 (d) 1,400 1,400 Higher Educational Facilities Authority Revenue, Health System, Series A, 5.00%, 8/15/07 500 515 Higher Educational Facilities Authority, Widener University, 4.10%, 7/15/16, (Callable 7/15/15 @ 100) 470 459 Lehigh Northampton Airport (AMT), 5.00%, 1/1/19, (Callable 1/1/15 @ 100) 1,175 1,229 ------------ 3,603 ------------ Puerto Rico (2.1%) Public Building Authority Revenue, Series I, 5.50%, 7/1/23, (Callable 7/1/14 @ 100) 1,000 1,105 ------------ Continued Shares or Principal Amount Value ------------ ------------- Municipal Bonds, continued Tennessee (1.1%) Housing Development Agency, Mortgage Finance, Series C, (AMT), 5.95%, 7/1/09, (Callable 7/1/05 @ 102) $ 555 $ 564 ------------ Texas (1.7%) Travis County GO, 5.75%, 3/1/17, (Prerefunded 3/1/10 @ 100) 815 902 ------------ Total Municipal Bonds 53,577 ------------ Money Markets (0.7%) AIM Tax Free Money Market Fund 101 --# Dreyfus Tax Exempt Money Market Fund 290 --# Goldman Sachs Financial Tax Free Money Market Fund 342,061 342 Merrill Lynch Institutional Tax Exempt Fund 29,891 30 ------------ Total Money Markets 372 ------------ Total Investments (Cost $51,464)+ - 100.9% 53,949 Liabilities in excess of other assets - (0.9)% (474) ------------ NET ASSETS - 100.0% $ 53,475 ============ See notes to schedules of portfolio investments and notes to financial statements. 101 Intermediate Municipal Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds (97.8%) Alabama (1.6%) Mobile County, Refunding & Improvements Warrants, 5.25%, 8/1/17, (Callable 8/1/14 @ 100) $ 3,080 $ 3,422 ------------ Alaska (0.3%) State Housing Finance Corp., Housing Development, Series A (AMT), 2.35%, 12/1/07 745 728 ------------ Arizona (4.7%) Glendale Water & Sewer Revenue, 5.00%, 7/1/07 1,040 1,080 Mesa Street & Highway Revenue, 6.25%, 7/1/12 1,000 1,165 Mesa Street & Highway Revenue, 6.25%, 7/1/13, (Prerefunded 7/1/11 @ 100) 1,000 1,153 Pima County Community College District Revenue, 5.00%, 7/1/07 670 696 Pima County University School District, No. 012 Sunnyside, GO, 5.75%, 7/1/12, (Prerefunded 7/1/09 @ 100) 1,050 1,150 Tempe Performing Arts Center, Excise Tax Revenue, 5.25%, 7/1/17, (Callable 7/1/14 @ 100) 2,000 2,217 Tucson Street & Highway, User Revenue, Junior Lien, Series 1994-E, 6.75%, 7/1/13 2,000 2,429 ------------ 9,890 ------------ California (6.2%) Beverly Hills Unified School District, 3.63%, 8/1/16 475 465 Contra Costa, 5.00%, 10/1/18 5,000 5,367 Imperial Community College District, 5.00%, 8/1/26, (Callable 8/1/15 @ 100) 910 970 La Canada Unified School District, Election 2004, Series A, GO, 5.38%, 8/1/21, (Callable 8/1/14 @ 100) 1,400 1,552 La Canada University School District, Series A, GO, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 375 419 Orange County, Series A, Refunding Recovery, 6.00%, 6/1/10 3,000 3,371 Placentia -Yorba Linda Union School District, Series B, GO, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 775 859 ------------ 13,003 ------------ Colorado (6.6%) Denver City & County Airport Revenue, Series B, (AMT), 5.50%, 11/15/07 1,000 1,050 Denver City & County Airport Revenue, Series D, (AMT), 5.00%, 11/15/06 1,000 1,026 Denver City & County Airport Revenue, Series D, (AMT), 5.00%, 11/15/07 2,655 2,760 Douglas County School District No.1, GO, 5.75%, 12/15/21, (Callable 12/15/14 @ 100) 1,500 1,729 Continued Principal Amount Value ------------ ------------- Municipal Bonds, continued Colorado, continued El Paso County School District No. 038, GO, 6.38%, 12/1/16, (Prerefunded 12/1/10 @ 100) $ 1,150 $ 1,322 El Paso County School District No. 038, GO, 6.38%, 12/1/18, (Prerefunded 12/1/10 @ 100) 1,005 1,155 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 2,183 Regional Transportation District, 2.30%, 12/1/22 1,000 986 Summitt County School District No RE1, GO, 5.75%, 12/1/12, (Callable 12/1/11 @ 100) 1,465 1,658 ------------ 13,874 ------------ Connecticut (0.8%) New Haven, Series B, GO, 5.75%, 11/1/09 1,500 1,652 ------------ Florida (1.0%) Lakeland Electric & Water Revenue, ETM, 5.90%, 10/1/07 2,000 2,124 ------------ Hawaii (1.5%) Airport Systems Revenue, Series B (AMT), 8.00%, 7/1/10 2,000 2,370 Highway Revenue, 5.50%, 7/1/10 765 842 ------------ 3,212 ------------ Illinois (4.3%) Chicago Metropolitan Water Reclamation District, Capital Improvement, ETM, GO, 5.50%, 12/1/10 3,000 3,321 Development Financial Authority Revenue, DePaul University, Series C, 5.00%, 10/1/06 125 127 Development Financial Authority Revenue, DePaul University, Series C, 5.00%, 10/1/07 200 207 DuPage County, Stormwater Project, 5.60%, 1/1/21 2,000 2,289 Educational Facilities Authority,Art Institute, 4.13%, 3/1/30 1,000 1,011 Financial Authority Gas Supply Revenue, Peoples Gas Light & Coke Co., 4.30%, 6/1/35 1,000 1,006 State, GO, 5.25%, 2/1/09 1,000 1,069 ------------ 9,030 ------------ Indiana (5.6%) Fort Wayne International Airport Building Corp. Revenue, (AMT), 5.00%, 7/1/12 1,615 1,701 Fort Wayne International Airport Building Corp. Revenue, (AMT), 5.00%, 7/1/13 1,695 1,780 Continued 102 Intermediate Municipal Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds, continued Indiana, continued Michigan City Independent School Building Corp., 5.00%, 7/5/09 $ 1,400 $ 1,492 Municipal Power Supply Agency System Revenue, Series B, 5.88%, 1/1/10 2,000 2,209 Municipal Power Supply Agency System Revenue, Series B, 6.00%, 1/1/13 3,000 3,454 Tippecanoe County Independent Elementary School Building Corp., 5.10%, 7/15/06 1,000 1,021 ------------ 11,657 ------------ Iowa (0.1%) Iowa State University, Science & Technology Revenue, 3.75%, 7/1/10 140 143 ------------ Kentucky (0.1%) Housing Corp., 3.45%, 1/1/10 275 275 ------------ Massachusetts (1.2%) Boston Economic Development & Industrial Corp., 4.50%, 6/1/30, (Callable 6/1/10 @ 100) 1,000 1,048 State Development Finance Agency Revenue, Chelsea Homes, (AMT), 2.90%, 12/15/06 1,525 1,509 ------------ 2,557 ------------ Michigan (23.2%) Battle Creek Downtown Development Authority, 6.00%, 5/1/07 2,215 2,333 Building Authority Revenue, 5.00%, 10/15/29 1,500 1,613 Building Authority Revenue, Police Communications, 5.50%, 10/1/12 350 393 Certificate of Participation, Series A, 5.00%, 9/1/31 2,000 2,145 Comprehensive Transportation, 5.50%, 5/15/11 950 1,055 Detroit, GO, (AMT), 5.50%, 4/1/08 1,195 1,263 Grand Rapids & Kent County Joint Building Authority, GO, 5.50%, 10/1/08 565 606 Grand Rapids Water Supply, 5.00%, 1/1/08 1,000 1,046 Higher Education Facilities Authority Revenue, Kalamazoo College Project, 5.25%, 12/1/07 765 802 Higher Education Facilities Authority Revenue, Hope College Project, 4.50%, 10/1/07 250 257 Higher Education Facilities Authority Revenue, Hope College Project, 4.80%, 10/1/10, (Callable 10/1/09 @ 100) 590 607 Higher Education Facilities Authority, Hope College Project, 4.70%, 10/1/09 200 207 Continued Principal Amount Value ------------ ------------- Municipal Bonds, continued Michigan, continued Higher Education Student Loan Authority Revenue, Series XII-Q, (AMT), 5.05%, 9/1/08 $ 3,885 $ 4,026 Higher Education Student Loan Authority Revenue, Series XII-W (AMT), 4.60%, 9/1/08 1,000 1,038 Higher Education Student Loan Authority Revenue, Series XII-W (AMT), 4.75%, 3/1/09 1,800 1,884 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 5.20%, 9/1/08 4,225 4,415 Higher Education Student Loan Authority Revenue, Series XVII-I, (AMT), 3.95%, 3/1/11 1,000 1,003 Hospital Finance Authority, 4.35%, 3/1/09 500 509 Hospital Financial Authority Revenue, Edward W. Sparrow Group, 5.25%, 11/15/08 1,125 1,190 Hospital Financial Authority Revenue, Edward W. Sparrow Hospital, 5.25%, 11/15/09 1,165 1,244 Hospital Financial Authority Revenue, Holland Community Hospital, Series A, 5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505 539 Kent Hospital Financial Authority, Revenue, Spectrum Health, Series A, 5.25%, 1/15/09 1,075 1,131 Kent, Hospital Financial Authority Revenue, Spectrum Health, Series B, 5.00%, 7/15/11 1,900 2,037 Mattawan Consolidated School District, 3.50%, 5/1/11 260 262 Montague Public School District, GO, 5.50%, 5/1/12, (Callable 11/1/11 @ 100) 1,005 1,113 Muskegon Water System, Series A, 5.25%, 11/1/09 340 367 State Hospital Financial Authority Revenue, Marquette General Hospital Obligations Group-A, 5.00%, 5/15/13 1,005 1,058 State Housing Development Authority, Multi-Family Revenue, 4.15%, 4/20/11 320 322 State Housing Development Authority, Multi-Family Revenue, 4.40%, 4/20/13 175 177 Strategic Fund, Limited Obligation Revenue, Hope Network Project, Series B, 4.80%, 9/1/08 1,000 1,039 Strategic Fund, Limited Obligation Revenue, International Project, 3.00%, 8/1/07 1,415 1,399 Strategic Fund, Limited Obligation Revenue, International Project, 4.75%, 8/1/11 2,240 2,340 Continued 103 Intermediate Municipal Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds, continued Michigan, continued Strategic Fund, Limited Obligation Revenue, International Project, 5.00%, 8/1/13 $ 820 $ 868 Strategic Fund, Limited Obligation Revenue, Solid Waste Disposal, 3.15%, 12/1/13 1,000 999 Trunk Line Fund, 3.00%, 9/1/09 150 149 Trunk Line, Series A, 5.25%, 11/1/13 600 668 University of Michigan Hospital Revenue, 5.00%, 12/1/08 4,130 4,363 University of Michigan, Medical Service Plan, Series A-1, 2.33%, 12/1/21 (d) 700 700 Wyandotte Electric Revenue, (AMT), 5.00%, 10/1/13 600 643 Wyandotte Electric Revenue, (AMT), 4.50%, 10/1/14 600 617 ------------ 48,427 ------------ Minnesota (3.2%) Elk River, Independent School District No. 728, Series C, 4.00%, 2/1/17 1,985 1,993 Housing Finance Agency, 4.55%, 7/1/12, (Callable 7/1/11 @ 100) 1,305 1,320 Minneapolis Special School District No. 001, 4.00%, 2/1/11 1,095 1,129 St. Paul, Housing & Redevelopment Authority Revenue, Smith Avenue Transit Center, 3.50%, 6/1/12, (Callable 6/1/10 @ 100) 2,000 1,958 State Housing Finance Agency, 3.40%, 7/1/12 385 367 ------------ 6,767 ------------ Mississippi (0.3%) Series A, GO, 5.25%, 12/1/07 500 525 ------------ Missouri (1.2%) Clarence Cannon Wholesale Water Commission, 4.00%, 5/15/14 285 292 Clay County Public School District No. 53, Liberty Direct Deposit Program, GO, 6.25%, 3/1/17, (Callable 3/1/10 @ 100) 2,000 2,235 ------------ 2,527 ------------ Nebraska (0.5%) Investment Financial Authority, Single Family Housing Revenue, Series D, (AMT), 4.10%, 9/1/10 400 398 Investment Financial Authority, Single Family Housing Revenue, Series D, (AMT), 4.25%, 9/1/11 560 561 ------------ 959 ------------ Nevada (1.8%) Clark County, GO, 5.00%, 11/1/16 3,090 3,354 Douglas County, Solid Waste Disposal, 3.00%, 12/1/06 100 100 Douglas County, Solid Waste Disposal, 3.00%, 12/1/07 100 100 Douglas County, Solid Waste Disposal, 3.50%, 12/1/08 100 100 Continued Principal Amount Value ------------ ------------- Municipal Bonds, continued Nevada, continued Douglas County, Solid Waste Disposal, 3.75%, 12/1/09 $ 100 $ 101 ------------ 3,755 ------------ New Jersey (2.6%) Ocean County Utilities Authority, Wastewater, Refunding, 6.00%, 1/1/07 2,500 2,608 Turnpike Authority Revenue, Series A, 6.00%, 1/1/13 575 666 Turnpike Authority Revenue, Series A, ETM, 6.00%, 1/1/13 1,925 2,234 ------------ 5,508 ------------ New Mexico (0.8%) Mortgage Financial Authority, Single Family Mortgage, (AMT), 3.50%, 7/1/36 1,000 1,075 Taos County Gross Receipts Tax Revenue, County Educational Improvements, 3.80%, 10/1/11 565 538 ------------ 1,613 ------------ New York (1.0%) Environmental Facilities Corp., Solid Waste Disposition Revenue, Series A, 2.90%, 5/1/12 2,000 1,992 ------------ North Dakota (0.1%) State Water Commission, 4.00%, 8/1/14 220 225 ------------ Ohio (2.2%) Economic Development Revenue, (AMT), 4.08%, 6/1/13 500 498 Higher Educational Facilities Revenue, Ohio Northern University Project, 3.88%, 5/1/13 645 645 Housing Financial Agency Mortgage Revenue, (AMT), 3.55%, 3/1/10 1,000 993 Housing Financial Agency Mortgage Revenue, (AMT), 3.70%, 3/1/11 1,000 994 Housing Financial Agency Mortgage Revenue, (AMT), 4.00%, 3/1/14 500 496 State Higher Education Facility Revenue, John Carroll University, 4.00%, 11/15/09 500 509 Summit County, GO, 6.00%, 12/1/09 400 443 ------------ 4,578 ------------ Oregon (1.1%) Marion County, 5.50%, 6/1/18 1,000 1,151 Marion County, 5.50%, 6/1/19 1,000 1,156 ------------ 2,307 ------------ Pennsylvania (5.7%) Allentown Commercial & Industrial Development, Diocese of Allentown, 2.27%, 12/1/29 (d) 1,450 1,450 Chartiers Valley Joint School, ETM, 6.15%, 3/1/07 4,110 4,321 Chichester School District, 4.00%, 3/15/13 805 828 Continued 104 Intermediate Municipal Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds, continued Pennsylvania, continued Chichester School District, 4.25%, 3/15/15 $ 640 $ 666 Clarion County, Industrial Development Authority,Water Facilities Revenue, (AMT), 3.60%, 12/1/32 2,000 1,987 Higher Educational Facilities Authority, Widener University, 3.60%, 7/15/11 250 241 Higher Educational Facilities Authority, Widener University, 3.75%, 7/15/12 405 394 Higher Educational Facilities Authority, Widener University, 3.85%, 7/15/13 430 417 Higher Educational Facilities Authority, Widener University, 4.00%, 7/15/14 490 480 Housing Finance Agency, 4.50%, 10/1/09 1,195 1,226 ------------ 12,010 ------------ Puerto Rico (4.9%) Commonwealth, Refunding Series A, 5.00%, 7/1/30 3,000 3,181 Public Building Authority Revenue, Series I, 5.50%, 7/1/23, (Callable 7/1/14 @ 100) 2,000 2,210 Public Buildings Authority Revenue, Refunding, Government Facilities, Series K, 4.50%, 7/1/22 2,000 2,044 Public Finance Corp., Commonwealth Appropriations, Series A, 5.75%, 8/1/27 2,500 2,750 ------------ 10,185 ------------ Rhode Island (1.4%) Depositors Economic Protection Corp., Series A, ETM, 5.88%, 8/1/11 2,535 2,874 ------------ South Carolina (0.5%) Anderson County School District No. 002, Series B, GO, 6.00%, 3/1/13, (Callable 3/1/10 @ 101) 890 998 ------------ Tennessee (3.2%) Housing Development Agency, Series A, 4.00%, 7/1/10 1,100 1,106 Metropolitan Nashville Airport Authority Revenue, (AMT), 5.38%, 7/1/14, (Callable 7/1/08 @ 102) 2,570 2,723 Shelby County, Health Educational & Housing Facilities Board, 4.00%, 9/1/06 (e) 1,000 1,008 Shelby County, Health Educational & Housing Facilities Board, 5.00%, 9/1/24 (e) 1,795 1,879 ------------ 6,716 ------------ Texas (2.6%) Cypress-Fairbanks Independent School District, 5.00%, 2/15/22 1,500 1,602 Dallas Waterworks & Sewer Systems Revenue, 5.25%, 10/1/09 1,000 1,078 Hidalgo County Health Services, Mission Hospital, Inc. Project, 4.00%, 8/15/06 250 250 Continued Shares or Principal Amount Value ------------ ------------- Municipal Bonds, continued Texas, continued Huffman Independent School District, GO, 7.00%, 2/15/06 $ 100 $ 102 Huffman Independent School District, GO, 7.00%, 2/15/07 160 170 Municipal Power Agency Revenue, 4.00%, 9/1/12 500 504 Series A, GO, 6.00%, 10/1/08 1,600 1,738 ------------ 5,444 ------------ 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%, 7/1/07 880 864 ------------ 1,531 ------------ Virginia (1.1%) Richmond, GO, 5.38%, 7/15/13, (Prerefunded 7/15/11 @ 101) 2,000 2,230 ------------ Washington (5.7%) Energy Northwest, Electric Revenue, Columbia General Station, Series F, 5.25%, 7/1/16 4,040 4,411 Grant County Public Utility District No. 002, Electric Revenue, 5.00%, 1/1/11 2,485 2,682 King County School District No. 415, Kent, Series A, GO, 5.55%, 12/1/11 2,000 2,214 Motor Vehicle Fuel Tax, R-92D, 6.25%, 9/1/07 1,000 1,066 Port Tacoma, Series A, GO, (AMT), 4.90%, 12/1/07 1,010 1,049 Yakima County, GO, 5.25%, 12/1/16, (Callable 12/1/12 @ 100) 425 462 ------------ 11,884 ------------ Total Municipal Bonds 204,622 ------------ Money Markets (2.3%) AIM Tax Free Money Market Fund 101 --# Dreyfus Tax Exempt Money Market Fund 4,841,658 4,842 Goldman Sachs Financial Tax Free Money Market Fund 240 --# Merrill Lynch Institutional Tax Exempt Fund 19,380 19 ------------ Total Money Markets 4,861 ------------ Total Investments (Cost $203,082)+ - 100.1% 209,483 Liabilities in excess of other assets - (0.1)% (197) ------------ NET ASSETS - 100.0% $ 209,286 ============ See notes to schedules of portfolio investments and notes to financial statements. 105 Ohio Municipal Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds (99.4%) Ohio (95.2%) Akron Bath Copley Joint Township Hospital District, Summa Health System Revenue, Series A, 5.25%, 11/15/16, (Callable 11/15/14 @ 100) $ 1,000 $ 1,077 Akron, GO, 5.50%, 12/1/07 2,000 2,116 American Municipal Power - Ohio, Inc., 5.25%, 1/1/11 1,825 1,997 Beavercreek Local School District, 6.60%, 12/1/15 1,500 1,841 Berea, GO, 5.13%, 12/1/13 1,215 1,282 Building Authority, 5.25%, 10/1/10, (Callable 4/1/09 @ 101) 2,410 2,590 Butler County Hospital Facilities Revenue, 4.75%, 11/15/18, (Callable 11/15/08 @ 101) 2,000 1,984 Butler County Transportation Improvement District, Series A, 6.00%, 4/1/12, (Callable 4/1/08 @ 102) 2,000 2,180 Cincinnati City School District, Classroom Facilities Construction & Improvements, 5.25%, 12/1/14, (Callable 12/1/13 @ 100) 3,000 3,337 Cleveland Public Power System Revenue, 5.25%, 11/15/16, (Callable 11/15/06 @ 102) 4,900 5,134 Cleveland Stadium Project, 5.25%, 11/15/11, (Callable 11/15/07 @ 102) 4,110 4,379 Cleveland, GO, 5.25%, 12/1/17 1,125 1,249 Cleveland, Non Tax Revenue, Cleveland Stadium Project, 5.00%, 12/1/15 1,225 1,338 Cleveland-Cuyahoga County, Port Authority Revenue, Dev-Rita Project, 4.00%, 11/15/10 1,100 1,120 Cuyahoga County Hospital Revenue, 5.50%, 2/15/09 2,245 2,404 Cuyahoga County Jail Facilities, GO, 5.25%, 10/1/13 3,000 3,354 Dayton, City School District, School Facilities Construction & Improvement, Series D, 5.00%, 12/1/16, (Callable 6/1/13 @ 100) 5,820 6,278 Dayton-Montgomery County Port Authority, Development-Parking Garage Project, Series A, 5.00%, 11/15/17 1,060 1,081 Economic Development Revenue, 3.50%, 12/1/07 350 348 Economic Development Revenue, 4.40%, 12/1/12 815 825 Erie County Hospital Facilities Revenue, 5.00%, 8/15/08 400 412 Erie County Hospital Facilities Revenue, 5.50%, 8/15/12 250 270 Euclid City School District, GO, 5.13%, 12/1/11, (Callable 12/1/05 @ 102) 1,500 1,541 Franklin County Development Revenue, 5.50%, 10/1/12, (Callable 10/1/09 @ 101) 2,270 2,441 Continued Principal Amount Value ------------ ------------- Municipal Bonds, continued Ohio, continued Franklin County, Online Computer Library Center, 5.00%, 4/15/10 $ 2,270 $ 2,389 Greater Cleveland Regional Transit Authority, 5.38%, 12/1/11, (Callable 12/1/08 @ 101) 1,455 1,574 Hamilton County Hospital Facilities Revenue, 5.20%, 12/1/13, (Callable 12/1/07 @ 101) 1,000 1,060 Hamilton County Hospital Facilities Revenue, Cincinnati Children's Hospital, Series J, 4.50%, 5/15/14 1,510 1,592 Hamilton County Hospital Facilities, Revenue, 5.25%, 5/15/11, (Callable 11/15/08 @ 101) 2,670 2,874 Hamilton County Sewer System Revenue, Series A, 5.60%, 12/1/08, (Callable 12/1/05 @ 102) 1,000 1,030 Higher Education, Capital Facilities Revenue, Series II-A, 5.50%, 12/1/07 4,695 4,961 Higher Education, Capital Facilities Revenue, Series II-A, 5.00%, 12/1/08 2,000 2,120 Higher Education, Case Western Reserve, 6.25%, 7/1/14 6,500 7,690 Higher Education, Dennison University Project, 5.50%, 11/1/12, (Callable 11/1/11 @ 101) 1,000 1,116 Higher Education, John Carroll University, 5.25%, 11/15/14, (Callable 11/15/13 @ 100) 1,435 1,570 Higher Education, John Carroll University, 5.25%, 11/15/15, (Callable 11/15/13 @ 100) 1,490 1,627 Higher Educational Facilities Revenue, Ohio Northern University Project, 3.50%, 5/1/10 475 475 Hilliard School District, 5.50%, 12/1/08 2,780 2,987 Housing Authority, 4.63%, 9/1/31, (Callable 1/1/11 @ 100) 1,620 1,642 Housing Finance Agency, (AMT), 3.95%, 9/1/08 370 371 Housing Finance Agency, (AMT), 4.15%, 9/1/09 625 623 Housing Finance Agency, (AMT), 4.35%, 9/1/10 235 235 Housing Finance Agency, (AMT), 3.65%, 9/1/11 785 757 Housing Finance Agency, (AMT), 4.55%, 9/1/11 240 243 Housing Finance Agency, (AMT), 3.30%, 9/1/30 1,180 1,170 Housing Finance Agency, Mortgage Revenue, (AMT), 3.90%, 3/1/13 1,000 993 Knox County Hospital Facilities Revenue, 4.70%, 6/1/08 1,150 1,189 Knox County Hospital Facilities Revenue, 5.00%, 6/1/12 6,250 6,663 Continued 106 Ohio Municipal Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds, continued Ohio, continued Lucas County, 6.65%, 12/1/12 $ 145 $ 147 Mental Health Capital Facilities, Series II-A, 5.00%, 6/1/13 2,135 2,331 Montgomery County Catholic Health Initiatives, Series A, 6.00%, 12/1/26 2,750 3,088 Montgomery County Solid Waste Revenue, 5.40%, 11/1/08, (Callable 11/1/05 @ 102) 3,000 3,078 Municipal Electric Generation Agency, Refunding, Joint Venture, 5-CTFS Ben Int, 5.00%, 2/15/14 3,675 4,016 North Olmstead, 6.20%, 12/1/11 3,000 3,460 Ohio State University General Receipts, 3.50%, 6/1/09 1,250 1,265 Penta Career Center, 5.00%, 4/1/10 1,330 1,429 Sidney Construction, 4.90%, 11/1/07 530 533 Solid Waste Revenue, 4.85%, 11/1/22 3,000 3,064 State Building Authority, Refunding, State Facilities-Administration Building Fund, Series A, 5.00%, 4/1/13 1,230 1,347 State Infrastructure Improvements, GO, Series B, 5.00%, 3/1/19, (Prerefunded 3/1/12 @ 100) 1,000 1,089 State Schools, 5.00%, 6/15/13 1,000 1,095 State Solid Waste Revenue, Refunding, Republic Services Project, 4.25%, 4/1/33 3,470 3,415 State, GO, 6.65%, 9/1/09 1,000 1,069 Toledo-Lucas County, Port Authority Special Assessment Revenue, Crocker Park Public Improvement Project, 5.00%, 12/1/09 1,110 1,146 Toledo-Lucas County, Port Authority Special Assessment Revenue, Crocker Park Public Improvements Project, 5.00%, 12/1/08 1,155 1,193 University of Cincinnati, 5.00%, 6/1/10 300 323 University of Cincinnati, GO, 5.50%, 6/1/09 2,000 2,167 Water Development Authority, Pollution Control Facilities Revenue, 5.25%, 12/1/08, (Callable 12/1/07 @ 101) 1,000 1,060 ------------ 133,844 ------------ Continued Shares or Principal Amount Value ------------ ------------- Municipal Bonds, continued Puerto Rico (4.2%) Commonwealth, Refunding Series A, 5.00%, 7/1/30 $ 3,000 $ 3,181 Public Buildings Authority Revenue, Refunding, Government Facilities, Series K, 4.50%, 7/1/22 1,000 1,022 Public Finance Corp., Commonwealth Appropriations, Series A, 5.75%, 8/1/27 1,500 1,650 ------------ 5,853 ------------ Total Municipal Bonds 139,697 ------------ Money Markets (0.8%) Goldman Sachs Financial Tax Free Money Market Fund 1,180,414 1,180 ------------ Total Money Markets 1,180 ------------ Total Investments (Cost $137,063)+ - 100.2% 140,877 Liabilities in excess of other assets - (0.2)% (354) ------------ NET ASSETS - 100.0% $ 140,523 ============ See notes to schedules of portfolio investments and notes to financial statements. 107 Michigan Municipal Bond Fund Schedule of Portfolio Investments July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds (99.5%) Michigan (96.9%) Ann Arbor Water Supply Systems, 5.00%, 2/1/10 $ 880 $ 944 Avondale School District, UTGO, 5.00%, 5/1/10 800 859 Birmingham City School District, 5.00%, 11/1/10 1,905 2,055 Building Authority Revenue, 5.00%, 10/15/29 1,000 1,075 Building Authority Revenue, Facilities Program, Series III, 5.00%, 10/15/08 2,000 2,115 Central Michigan University, 5.00%, 10/1/09 1,605 1,716 Certificate of Participation, Series A, 5.00%, 9/1/31 1,000 1,072 Charles Stewart Mott Community College, UTGO, 5.00%, 7/1/09 1,000 1,067 Clarkston Schools, 4.00%, 5/1/12 200 205 Comprehensive Transportation, Series A, 5.25%, 5/15/09 3,000 3,221 Comprehensive Transportation, Series B, 5.25%, 5/15/09 1,390 1,493 Detroit City School District, Building & Site Improvements, Series A, 5.00%, 5/1/08 1,000 1,051 Detroit Convention Facilities, 5.00%, 9/30/08 2,000 2,114 Detroit, GO, 6.00%, 4/1/06 750 766 Dexter Community School District, GO, 6.25%, 5/1/07 1,730 1,828 Ferndale, UTGO, 4.50%, 4/1/10 1,190 1,253 Forest Hills Public Schools, GO, 5.25%, 5/1/09 2,785 2,984 Frankenmuth School District, UTGO, 5.50%, 5/1/06 125 127 Grand Rapids & Kent County Joint Building Authority, GO, 5.50%, 10/1/09 605 659 Grand Rapids & Kent County Joint Building Authority, UTGO, 5.50%, 10/1/07 535 563 Greater Detroit Resource Recovery Authority, 6.25%, 12/13/06 2,500 2,612 Higher Education Facilities Authority Revenue, Hope College Project, 4.60%, 10/1/08 320 332 Higher Education Facilities Authority Revenue, Kalamazoo College Project, 5.25%, 12/1/05 590 594 Higher Education Facilities Authority Revenue, Kalamazoo College Project, 5.25%, 12/1/06 725 747 Higher Education Facility Authority - Thomas M. Cooley Law School, 4.75%, 5/1/07 1,265 1,292 Higher Education Student Loan Authority Revenue, (AMT), 5.00%, 3/1/07 2,525 2,579 Continued Principal Amount Value ------------ ------------- Municipal Bonds, continued Michigan, continued Higher Education Student Loan Authority Revenue, Series XII-W (AMT), 4.60%, 9/1/08 $ 1,000 $ 1,038 Higher Education Student Loan Authority Revenue, Series XII-W (AMT), 4.75%, 3/1/09 200 209 Higher Education Student Loan Authority Revenue, Series XVII-I (AMT), 3.65%, 3/1/10 1,000 1,000 Hospital Finance Authority Revenue, Oakwood Obligated Group, 5.00%, 11/1/05 730 733 Hospital Finance Authority, Bay Medical Center, Series A, 5.38%, 7/1/06 1,855 1,899 Hospital Financial Authority Revenue, Hospital Crittenton, Series A, 3.50%, 3/1/06 200 200 Hospital Financial Authority Revenue, Hospital Crittenton, Series A, 3.85%, 3/1/07 200 201 Hospital Financial Authority Revenue, Hospital Crittenton, Series A, 4.15%, 3/1/08 300 304 Hospital Financial Authority Revenue, McLaren Health Care, Series C, 4.00%, 8/1/08 405 410 Hospital Financial Authority Revenue, Sparrow Obligation Group, 5.00%, 11/15/05 1,055 1,061 Hospital Financial Authority Revenue, Sparrow Obligation Group, 5.00%, 11/15/06 735 749 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%, 12/1/07 215 216 Housing Development Authority, (AMT), Series B, 4.13%, 12/1/08 305 306 Housing Development Authority, (AMT), Series B, 4.35%, 12/1/09 355 356 Housing Development Authority, (AMT), Series B, 4.55%, 12/1/10 455 458 Housing Development Authority, (AMT), Series B, 4.65%, 12/1/11 485 494 Housing Development Authority, Parkway Meadows Project, 3.50%, 10/15/08 930 945 Housing Development Authority, Parkway Meadows Project, 3.50%, 10/15/09 710 717 Kalamazoo Hospital Finance Authority Revenue, Bronson Methodist Hospital, 5.50%, 5/15/08 750 797 Continued 108 Michigan Municipal Bond Fund Schedule of Portfolio Investments, continued July 31, 2005 (Amounts in thousands, except shares) - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------- Municipal Bonds, continued Michigan, continued Kent, Hospital Finance Authority Revenue, Spectrum Health, 5.25%, 1/15/08 $ 430 $ 449 Kent, Hospital Financial Authority Revenue, Spectrum Health, Series B, 5.00%, 7/15/11 600 643 Municipal Bond Authority Revenue, Series A, 5.25%, 12/1/07 1,000 1,050 Municipal Building Authority Revenue, Government Loan Program, Series C, 5.00%, 5/1/10 1,000 1,075 Muskegon County,Wastewater Management System, No. 1, (AMT), 5.00%, 7/1/06 1,130 1,152 Muskegon County,Wastewater Management System, No. 1, (AMT), 5.00%, 7/1/08 1,000 1,047 Novi Community School District, Building & Site Improvements, 4.13%, 5/1/08 1,000 1,027 Novi Community School District, Building & Site Improvements, 5.00%, 10/1/08 2,320 2,452 South Central Power Agency, Power Supply System Revenue, 5.80%, 11/1/05 65 66 South Macomb Disposal Authority Revenue, 5.00%, 9/1/08 1,115 1,177 State Hospital Finance Authority Revenue, Holland Community Hospital, 4.15%, 1/1/12 450 458 State Hospital Financial Authority Revenue, General Hospital Obligations Group, 5.00%, 5/15/10 905 950 State Housing Development Authority, Multi-Family Revenue, 3.55%, 4/20/08 395 395 Strategic Fund, Hope Network Project, Series B, 4.75%, 9/1/07 615 632 Strategic Fund, Limited Obligation Revenue, Consumers Energy Company Project, 3.38%, 6/15/10 2,000 1,992 Strategic Fund, Limited Obligation Revenue, Detroit Symphony Project, Series B, 2.33%, 6/1/31 (d) 1,000 1,000 Strategic Fund, Limited Obligation Revenue, International Project, 2.00%, 8/1/05 1,030 1,030 Strategic Fund, Limited Obligation Revenue, Solid Waste Disposal, 3.15%, 12/1/13 1,000 999 Trunk Line, Series A, 5.50%, 11/1/07 1,025 1,082 Trunk Line, Series A, 5.25%, 11/1/09 1,000 1,078 University of Michigan Hospital Revenue, 5.00%, 12/1/08 2,000 2,113 University of Michigan Hospital Revenue, 5.00%, 12/1/09 510 544 Continued Shares or Principal Amount Value ------------ ------------- Municipal Bonds, continued Michigan, continued Warren Building Authority, 3.70%, 11/1/09 $ 225 $ 227 Wayne Charter,Airport Revenue, Series D, 5.25%, 12/1/06 2,000 2,060 Wayne County Airport Authority, 5.00%, 12/1/09 1,000 1,059 Wayne County Community College, 5.25%, 7/1/09 1,000 1,076 Wayne-Westland Community Schools, 5.00%, 5/1/10 1,000 1,076 Wyandotte, Electric Revenue, (AMT), 4.50%, 10/1/11 600 624 Wyandotte, Electric Revenue, (AMT), 5.00%, 10/1/12 600 641 Zeeland,Water System Revenue, (AMT), 4.00%, 10/1/06 245 248 Zeeland,Water System Revenue, (AMT), 4.00%, 10/1/07 255 258 Zeeland,Water System Revenue, (AMT), 4.00%, 10/1/08 270 273 Zeeland,Water System Revenue, (AMT), 4.00%, 10/1/09 280 282 ------------ 77,896 ------------ Puerto Rico (2.6%) Public Buildings Authority Revenue, Refunding, Government Facilities, Series K, 4.50%, 7/1/22 1,000 1,022 Public Finance Corp., Commonwealth Appropriations, Series A, 5.75%, 8/1/27 1,000 1,100 ------------ 2,122 ------------ Total Municipal Bonds 80,018 ------------ Money Markets (1.0%) AIM Tax Free Money Market Fund 170 --# Dreyfus Tax Exempt Money Market Fund 4,703 5 Goldman Sachs Financial Tax Free Money Market Fund 169,728 170 Merrill Lynch Institutional Tax Exempt Fund 647,795 648 ------------ Total Money Markets 823 ------------ Total Investments (Cost $80,590)+ - 100.5% 80,841 Liabilities in excess of other assets - (0.5)% (405) ------------ NET ASSETS - 100.0% $ 80,436 ============ See notes to schedules of portfolio investments and notes to financial statements. 109 Fifth Third Funds Notes to Schedules of Portfolio Investments July 31, 2005 (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 value included in the security description indicated represents expected per share annual dividend. (d) Variable rate security. Rate presented represents rate in effect at July 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 July 31, 2005. (h) Investment is in Institutional Shares of the underlying fund. (i) Common Stock. (j) The Fund's securities were fair valued at July 31, 2005 using procedures approved by the Board of Trustees. 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 REITS - Real Estate Investment Trust SPDR - Standard & Poor's Depositary Receipt TBA - To be announced TRAINS - Targeted Return Index Security 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 $ 243,215 $ 62,598 $ (957) $ 61,641 Mid Cap Growth Fund 416,381 135,991 (3,238) 132,753 Quality Growth Fund 849,239 177,364 (8,430) 168,934 Large Cap Core Fund 194,457 21,800 (4,346) 17,454 Equity Index Fund 262,708 234,342 (19,032) 215,310 Balanced Fund 146,137 12,678 (733) 11,945 Micro Cap Value Fund 144,889 61,485 (7,669) 53,816 Small Cap Value Fund 177,973 24,834 (1,025) 23,809 Multi Cap Value Fund 325,050 122,916 (8,220) 114,696 Disciplined Large Cap Value Fund 536,641 144,450 (8,743) 135,707 LifeModel Aggressive Fund(SM) 111,493 24,460 (378) 24,082 LifeModel Moderately Aggressive Fund(SM) 253,515 42,892 (1,691) 41,201 LifeModel Moderate Fund(SM) 460,880 42,671 (6,334) 36,337 LifeModel Moderately Conservative Fund(SM) 97,052 11,414 (1,488) 9,926 LifeModel Conservative Fund(SM) 58,244 3,027 (1,042) 1,985 Strategic Income Fund 158,303 11,100 (3,173) 7,927 Select Stock Fund 11,311 2,736 (161) 2,575 Technology Fund 53,416 2,796 (440) 2,356 International Equity Fund 327,348 46,892 (45,429) 1,463 Bond Fund 416,909 2,943 (2,052) 891 Intermediate Bond Fund 660,190 2,835 (7,140) (4,305) Short Term Bond Fund 396,495 31 (7.569) (7,538) U.S. Government Bond Fund 70,210 353 (574) (221) Municipal Bond Fund 51,436 2,563 (50) 2,513 Intermediate Municipal Bond Fund 203,073 7,064 (654) 6,410 Ohio Municipal Bond Fund 136,847 4,585 (555) 4,030 Michigan Municipal Bond Fund 80,577 618 (354) 264 See notes to financial statements 110 Fifth Third Funds Notes to Schedules of Portfolio Investments, continued July 31, 2005 - -------------------------------------------------------------------------------- The table below reflects the Balanced Fund's activities in written options, all of which were for purposes of earning additonal income during the period. The Balanced Fund had outstanding written option contracts of Bank of America Corp., $50.00, 8/20/05 at the end of the period. No other Funds engaged in written option contracts during the year ended July 31, 2005: Balance at Options Options Balance July 31, 2004 written expired July 31, 2005 ------------- ------- ------- ------------- Number of Contracts Balanced Fund -- 57 (23) 34 Premiums Balanced Fund $ -- $ 22 $ (14) $ 8 Open futures contracts as of July 31, 2005 (Amounts in thousands except contract amount): Unrealized Number of Notional Appreciation/ Market Contracts Contract Type Amount (Depreciation) Value --------- ------------------------- -------- -------------- --------- Small Cap Growth Fund 15 Russell 2000, 9/15/05 $ 4,719 $ 397 $ 5,116 === ======== ======= ========= Large Cap Core Fund 18 Standard & Poor's 500, 9/15/05 5,475 91 5,566 === ======== ======= ========= Equity Index Fund 22 Standard & Poor's 500, 9/15/05 6,605 197 6,802 === ======== ======= ========= International Equity Fund 21 DAX, 9/16/05 3,099 20 3,119 15 S&P/MIB, 9/16/05 (3,065) 2 (3,063) 43 HANG SENG, 8/30/05 4,093 24 4,117 29 TOPIX, 9/08/05 3,093 16 3,109 129 MSCI Taiwan, 8/30/05 3,417 (47) 3,370 --- -------- ------- --------- 237 $ 10,637 $ 15 $ 10,652 === ======== ======= ========= As of July 31, 2005, the following Funds had securities on loan with the following market values and collateral amounts: Average Market Loan Open Value of Outstanding Cash Collateral Loaned during the Collateral Commitments Securities year ---------- ----------- ---------- ------------- Small Cap Growth Fund $ 65,350 $ (52) $ 63,524 $ 52,252 Mid Cap Growth Fund 95,287 (1,460) 91,242 82,725 Quality Growth Fund 117,696 (637) 113,865 102,966 Large Cap Core Fund 16,933 (15) 16,458 10,071 Equity Index Fund 57,984 (365) 56,045 61,033 Balanced Fund 14,651 (81) 14,173 11,708 Micro Cap Value Fund 23,129 (196) 22,306 13,719 Small Cap Value Fund 37,661 (209) 36,430 36,369 Multi Cap Value Fund 63,202 (226) 61,262 51,876 Disciplined Large Cap Value Fund 66,221 (373) 64,052 59,608 Technology Fund 8,901 (64) 8,596 10,541 International Equity Fund 22,137 49 21,586 31,125 Bond Fund 29,073 (105) 28,179 13,859 Intermediate Bond Fund 80,375 (131) 78,064 130,072 Short Term Bond Fund 39,788 (2) 38,706 129,582 See notes to financial statements 111 Fifth Third Funds Notes to Schedules of Portfolio Investments, continued July 31, 2005 - -------------------------------------------------------------------------------- The cash collateral received by the Fifth Third Funds at July 31, 2005, was pooled and invested in the following: Security Type Security Name Value Rate Maturity Date - ----------------------- --------------------------------- -------- ------ ---------------- Certificate of Deposit Bayersiche Landesbank NY $ 25,000 3.45% 08/24/06 Floating Rate Security International Lease Finance Corp. 5,000 3.23% 08/01/05 Floating Rate Security International Lease Finance Corp. 1,260 3.19% 08/01/05 Floating Rate Security Bear, Stearns & Co., Inc. 25,000 3.49% 08/02/05 Floating Rate Security American Express Credit Co. 7,700 3.35% 08/09/05 Floating Rate Security Credit Suisse First Boston 35,000 3.21% 08/10/05 Floating Rate Security MetLife Global Funding, Inc. 4,000 3.35% 08/26/05 Floating Rate Security International Lease Finance Corp. 17,946 3.46% 09/22/05 Floating Rate Security Goldman Sachs Group, Inc. 20,000 3.48% 09/27/05 Floating Rate Security American Express Credit Co. 5,001 3.35% 10/14/05 Floating Rate Security General Electric Co. 10,002 3.61% 10/24/05 Floating Rate Security General Electric Co. 10,001 3.65% 10/24/05 Floating Rate Security Westdeutsche Landesbank 34,995 3.48% 10/31/05 Floating Rate Security Merrill Lynch & Co., Inc. 8,362 3.19% 11/04/05 Floating Rate Security Credit Suisse First Boston 5,001 3.35% 12/08/05 Floating Rate Security IBM Corp. 35,000 3.31% 01/09/06 Floating Rate Security General Electric Capital Corp. 7,704 3.33% 01/09/06 Floating Rate Security Goldman Sachs Group, Inc. 17,000 3.43% 01/13/06 Floating Rate Security Abbey National Treasury Service 25,008 3.58% 01/13/06 Floating Rate Security Abbey National Treasury Service 15,005 3.58% 01/13/06 Floating Rate Security General Electric Capital Corp. 6,007 3.18% 02/03/06 Floating Rate Security General Electric Capital Corp. 5,006 3.18% 02/06/06 Floating Rate Security Wal-Mart Stores, Inc. 39,979 3.36% 03/16/06 Floating Rate Security American Express Bank 27,000 3.37% 03/16/06 Floating Rate Security Merrill Lynch & Co., Inc. 29,016 3.39% 03/17/06 Floating Rate Security Proctor & Gamble Co. 25,000 3.34% 07/10/06 Floating Rate Security Morgan Stanley 10,000 3.33% 08/03/06 Floating Rate Security Morgan Stanley 5,000 3.33% 08/03/06 Floating Rate Security Morgan Stanley 25,000 3.34% 08/04/06 Floating Rate Security Bank of New York Co., Inc. 40,000 3.32% 08/10/06 Floating Rate Security HSBC Finance Corp. 35,000 3.45% 08/24/06 Floating Rate Security Florida Heart Group 8,915 3.49% 04/01/14 Floating Rate Security Guiding Light Church 11,000 3.44% 03/01/25 Repurchase Agreement Barclays Capital Markets 57,480 3.30% 08/01/05 Repurchase Agreement UBS Investment Bank 100,000 3.30% 08/01/05 See notes to financial statements 112 Fifth Third Funds Notes to Schedules of Portfolio Investments, continued July 31, 2005 - -------------------------------------------------------------------------------- International Equity Fund Foreign Currency Contracts as of July 31, 2005: Contract Current Amount Contract Value Unrealized Delivery (Local Value U.S. U.S. Appreciation/ Date Currency) Dollar Dollar (Depreciation) --------- --------- ---------- -------- -------------- British Pound Sterling - ------------------------------------ Short Contracts 9/15/05 1,833 $3,216 $3,220 ($4) 9/08/05 1,906 3,305 3,348 (43) 8/01/05 435 760 765 (5) 8/02/05 90 158 158 --^ Long Contracts 9/15/05 1,833 3,193 3,220 27 9/08/05 1,906 3,375 3,348 (27) Danish Kroner - ------------------------------------ Long Contracts 8/01/05 1,047 169 170 1 Euro - ------------------------------------ Short Contracts 9/08/05 5,422 6,650 6,585 65 9/15/05 5,898 7,170 7,166 4 9/15/05 1,677 2,042 2,037 5 9/15/05 1,570 1,907 1,907 --^ 9/15/05 1,055 1,276 1,282 (6) 9/15/05 1,597 1,942 1,941 1 8/01/05 293 354 356 (2) 8/02/05 69 84 84 --^ 8/02/05 665 808 807 1 8/02/05 200 243 243 --^ Long Contracts 9/15/05 9,541 11,544 11,592 48 9/15/05 1,961 2,382 2,382 --^ 9/08/05 5,422 6,604 6,585 (19) 9/15/05 296 361 359 (2) Hong Kong Dollar - ------------------------------------ Short Contracts 9/08/05 26,249 3,375 3,377 (2) Japanese Yen - ------------------------------------ Short Contracts 9/08/05 699,647 6,500 6,249 251 9/08/05 989,325 9,100 8,837 263 9/15/05 1,547,623 14,259 13,834 425 9/15/05 1,066,989 9,845 9,538 307 9/15/05 465,462 4,297 4,161 136 9/15/05 861,123 7,934 7,697 237 9/15/05 201,250 1,862 1,799 63 9/08/05 1,356,240 12,171 12,114 57 Long Contracts 9/15/05 611,136 5,643 5,463 (180) 9/15/05 1,907,296 17,612 17,049 (563) 9/15/05 1,352,172 12,477 12,087 (390) 9/15/05 271,843 2,510 2,430 (80) 9/08/05 1,688,972 15,643 15,086 (557) 9/08/05 1,356,240 12,203 12,114 (89) 9/15/05 343,650 3,110 3,072 (38) Norwegian Krone - ------------------------------------ Long Contracts 8/01/05 741 113 114 1 Swiss Franc - ------------------------------------ Long Contracts 8/02/05 73 56 57 1 8/04/05 97 76 75 (1) Taiwan Dollar - ------------------------------------ Long Contracts 8/25/05 52,414 1,643 1,648 5 8/25/05 48,586 1,528 1,527 (1) - --------------------- ^ Represents fewer than five hundred dollars. See notes to financial statements 113 Fifth Third Funds Notes to Schedules of Portfolio Investments, continued July 31, 2005 - -------------------------------------------------------------------------------- The investment concentrations for the Equity Funds as a percentage of net assets, by industry, as of July 31, 2005, were as follows: Small Cap Mid Cap Quality Large Cap Equity Micro Cap Small Cap Multi Cap Growth Growth Growth Core Index Value Value Value Fund Fund Fund Fund Fund Fund Fund Fund -------- -------- -------- -------- -------- -------- -------- -------- Advertising 0.9% -- -- -- 0.2% 0.3% -- 0.4% Aerospace/Defense 1.7% 1.1% 3.7% 3.1% 1.9% -- -- 1.2% Agriculture -- -- -- 1.4% 1.5% -- -- -- Airlines -- -- -- -- 0.1% 0.7% -- -- Apparel 1.5% 2.2% 1.7% -- 0.4% 9.1% 4.4% 0.6% Auto Manufacturers -- -- -- -- 0.5% -- -- 0.5% Auto Parts & Equipment 1.9% -- -- 0.9% 0.2% -- 1.1% 2.2% Banks 1.9% 1.1% 2.4% 5.2% 6.1% 0.5% 3.9% 3.6% Beverages -- -- 0.8% 2.2% 2.2% -- 1.0% 0.5% Biotechnology 1.0% 1.5% 1.6% 0.7% 1.2% -- -- 1.4% Building Materials -- -- -- -- 0.3% 2.2% -- 0.8% Cash Equivalents 27.2% 21.4% 13.1% 8.7% 13.8% 13.0% 22.8% 16.7% Chemicals -- -- -- 0.6% 1.5% 4.3% 6.0% 1.7% Closed-end Funds -- -- -- -- -- -- -- 0.5% Commercial Services 5.3% 7.4% -- 1.3% 0.9% 4.7% 7.2% 0.6% Computers 2.9% 4.4% 5.3% 4.1% 3.9% 5.3% -- 3.0% Cosmetics/Personal Care -- -- 2.0% 1.5% 2.3% -- -- 0.8% Distribution/Wholesale -- 4.2% -- --^ 0.1% 0.6% -- -- Diversified Financial Services 1.2% 2.8% 6.1% 7.5% 7.5% 1.4% 2.0% 5.4% Electric 1.1% -- -- 2.8% 3.2% -- 9.9% 2.7% Electrical Components & Equipment 2.3% -- 1.5% -- 0.3% 2.2% -- 0.4% Electronics 3.7% 5.8% 1.6% 0.6% 0.5% 5.1% 3.5% 2.4% Engineering & Construction 1.1% -- -- -- --^ 1.2% -- -- Entertainment 1.1% 1.1% -- -- 0.1% 0.9% -- -- Environmental Control -- 1.1% -- 0.7% 0.2% 1.1% -- -- Food 1.1% -- 1.5% 3.9% 1.7% 2.1% 4.6% 6.4% Food Service -- -- -- -- -- -- -- -- Forest Products & Paper -- -- -- -- 0.5% -- -- 0.9% Gas -- -- -- -- 0.2% -- 1.8% -- Hand/Machine Tools -- -- -- -- 0.1% 0.4% -- 1.3% Healthcare-Products 10.9% 8.6% 7.1% 3.9% 3.6% 1.4% 2.5% 1.6% Healthcare-Services 4.1% 2.1% 4.6% 0.7% 1.7% 1.1% 3.1% 1.6% Holding Companies- Diversified -- -- -- -- -- -- -- -- Home Builders 2.1% 4.5% -- -- 0.3% -- -- -- Home Furnishings -- 1.2% -- -- 0.1% 3.5% -- 1.9% Household Products/ Wares 3.2% -- -- -- 0.2% 2.2% 2.1% 0.8% Housewares -- -- -- 0.8% 0.1% 0.4% -- 0.2% Insurance 1.4% 1.6% 1.5% 7.1% 4.6% 2.0% 8.9% 5.9% Internet 6.1% 3.3% 1.4% 0.3% 1.1% 2.2% -- -- Investment Companies 2.2% 7.3% --^ 2.7% 1.5% 1.5% 7.6% 1.5% Iron/Steel 0.9% -- -- -- 0.1% 3.9% -- -- Leisure Time -- -- -- 0.3% 0.4% 0.7% -- 0.3% Lodging -- 1.5% 4.6% 0.8% 0.4% -- -- -- Machinery-Construction & Mining 1.3% 1.9% -- -- 0.3% -- -- -- Machinery-Diversified -- -- 2.4% 1.0% 0.3% 0.5% -- 1.8% Media -- -- -- 2.1% 3.4% -- -- 2.7% Metal Fabricate/ Hardware -- -- -- -- -- 1.6% -- -- Mining -- -- -- 0.2% 0.5% 1.9% 0.6% 0.4% Miscellaneous Manufacturing -- 1.6% 3.3% 3.8% 5.4% 2.8% 0.7% 4.1% Office Furnishings -- -- -- -- -- -- -- -- Office/Business Equipment -- -- -- -- 0.2% -- -- -- Oil & Gas 4.3% 9.9% 1.2% 9.3% 7.6% 1.3% 1.6% 10.7% Oil & Gas Services 3.8% 1.8% 1.1% -- 1.1% 4.2% 5.3% 1.7% Packaging & Containers -- -- -- 0.1% 0.1% -- -- -- Pharmaceuticals 4.2% 4.6% 5.8% 7.2% 6.0% 1.5% 2.6% 5.0% Pipelines -- -- -- 0.3% 0.3% -- -- -- Real Estate -- -- -- -- -- -- -- -- REITS -- -- -- -- 0.6% 2.1% 0.4% 0.2% Retail 8.7% 11.1% 14.1% 7.0% 6.7% 8.3% 11.4% 9.0% Savings & Loans 0.9% -- -- -- 0.6% -- 0.9% -- Semiconductors 2.5% 1.7% 13.1% 4.5% 3.4% 1.5% 2.6% 2.9% Shipbuilding -- -- -- -- -- -- -- -- Software 6.7% 3.1% 3.8% 4.4% 4.2% 1.1% 0.8% 0.3% Sovereign 0.2% -- -- -- -- -- -- -- Storage/Warehousing -- -- -- -- -- -- -- -- Telecommunications 3.4% 3.6% 5.8% 5.5% 5.8% 4.2% 2.8% 5.9% Textiles -- -- 2.0% -- 0.1% 0.7% -- -- Toys/Games/Hobbies 1.8% -- -- -- 0.1% -- -- 0.5% Transportation 2.3% -- -- 1.5% 1.5% 6.2% -- 3.0% Trucking & Leasing -- -- -- -- --^ -- -- -- Water -- -- -- -- -- -- -- -- Disciplined LifeModel LifeModel Large Cap LifeModel Moderately LifeModel Moderately LifeModel Select International Value Aggressive Aggressive Moderate Conservative Conservative Stock Technology Equity Fund Fund(SM) Fund(SM) Fund(SM) Fund(SM) Fund(SM) Fund Fund Fund ---------- ----------- ----------- --------- ------------- ------------ ------- ---------- ------------- Advertising -- -- -- -- -- -- -- 2.6% 0.1% Aerospace/Defense 3.2% -- -- -- -- -- 6.8% -- 0.5% Agriculture -- -- -- -- -- -- -- -- 1.0% Airlines -- -- -- -- -- -- -- -- 0.1% Apparel -- -- -- -- -- -- 2.5% -- 0.1% Auto Manufacturers 2.0% -- -- -- -- -- -- -- 3.0% Auto Parts & Equipment -- -- -- -- -- -- -- -- 0.6% Banks 11.6% -- -- -- -- -- -- -- 17.4% Beverages -- -- -- -- -- -- -- -- 1.0% Biotechnology -- -- -- -- -- -- -- 6.6% --^ Building Materials 1.1% -- -- -- -- -- -- -- 1.8% Cash Equivalents 10.9% -- -- -- -- -- -- 19.1% 7.0% Chemicals 4.0% -- -- -- -- -- -- -- 2.7% Closed-end Funds -- -- -- -- -- -- -- -- 0.1% Commercial Services 1.4% -- -- -- -- -- -- -- 1.3% Computers 3.1% -- -- -- -- -- 6.2% 14.1% 0.5% Cosmetics/Personal Care -- -- -- -- -- -- -- -- 0.6% Distribution/Wholesale 1.1% -- -- -- -- -- -- -- 0.9% Diversified Financial Services 7.4% -- -- -- -- -- 11.5% -- 1.5% Electric 4.3% -- -- -- -- -- -- -- 3.0% Electrical Components & Equipment -- -- -- -- -- -- -- -- 0.9% Electronics 2.0% -- -- -- -- -- 3.8% 9.4% 1.5% Engineering & Construction -- -- -- -- -- -- -- -- 1.1% Entertainment -- -- -- -- -- -- -- -- 0.4% Environmental Control -- -- -- -- -- -- -- -- --^ Food 6.9% -- -- -- -- -- -- -- 3.6% Food Service -- -- -- -- -- -- -- -- 0.1% Forest Products & Paper 0.8% -- -- -- -- -- -- -- 0.6% Gas -- -- -- -- -- -- -- -- 0.6% Hand/Machine Tools -- -- -- -- -- -- -- -- 0.5% Healthcare-Products -- -- -- -- -- -- 8.8% 1.1% 0.5% Healthcare-Services 1.2% -- -- -- -- -- 5.9% -- --^ Holding Companies- Diversified -- -- -- -- -- -- -- -- 0.7% Home Builders -- -- -- -- -- -- -- -- 0.3% Home Furnishings -- -- -- -- -- -- -- -- 0.9% Household Products/ Wares -- -- -- -- -- -- -- -- 0.3% Housewares -- -- -- -- -- -- -- -- --^ Insurance 7.9% -- -- -- -- -- -- -- 3.3% Internet -- -- -- -- -- -- -- 10.5% 0.3% Investment Companies 2.6% 100.0% 100.1% 99.8% 100.1% 100.0% 0.1% -- 5.2% Iron/Steel -- -- -- -- -- -- -- -- 1.0% Leisure Time 1.7% -- -- -- -- -- -- -- 0.2% Lodging -- -- -- -- -- -- 1.7% -- 0.3% Machinery-Construction & Mining 2.1% -- -- -- -- -- -- -- 0.2% Machinery-Diversified -- -- -- -- -- -- 3.3% -- 0.3% Media 2.3% -- -- -- -- -- -- -- 1.0% Metal Fabricate/ Hardware -- -- -- -- -- -- -- -- 0.2% Mining 0.7% -- -- -- -- -- -- -- 2.5% Miscellaneous Manufacturing 2.7% -- -- -- -- -- 3.7% -- 1.6% Office Furnishings -- -- -- -- -- -- -- -- --^ Office/Business Equipment -- -- -- -- -- -- -- -- 0.7% Oil & Gas 13.9% -- -- -- -- -- -- -- 9.2% Oil & Gas Services -- -- -- -- -- -- -- -- -- Packaging & Containers -- -- -- -- -- -- -- -- 0.1% Pharmaceuticals 6.8% -- -- -- -- -- 6.3% 3.1% 6.5% Pipelines -- -- -- -- -- -- -- -- -- Real Estate -- -- -- -- -- -- -- -- 2.1% REITS -- -- -- -- -- -- -- -- 0.3% Retail 4.1% -- -- -- -- -- 12.9% -- 1.9% Savings & Loans -- -- -- -- -- -- -- -- -- Semiconductors 1.4% -- -- -- -- -- 17.3% 28.4% 0.4% Shipbuilding -- -- -- -- -- -- -- -- --^ Software -- -- -- -- -- -- -- 6.2% 0.7% Sovereign -- -- -- -- -- -- -- -- -- Storage/Warehousing -- -- -- -- -- -- -- -- --^ Telecommunications 3.5% -- -- -- -- -- 6.0% 18.5% 8.0% Textiles -- -- -- -- -- -- 3.2% -- 0.2% Toys/Games/Hobbies -- -- -- -- -- -- -- -- 0.1% Transportation -- -- -- -- -- -- -- -- 1.7% Trucking & Leasing -- -- -- -- -- -- -- -- -- Water -- -- -- -- -- -- -- -- 0.3% - ------------------------ ^ Amount is less than 0.05%. See notes to financial statements 114 & 115 Fifth Third Funds Notes to Schedules of Portfolio Investments, continued July 31, 2005 - -------------------------------------------------------------------------------- The investment concentrations for the Balanced Fund and Strategic Income Fund as a percentage of net assets, by industry, as of July 31, 2005, were as follows: Strategic Strategic Balanced Income Balanced Income Fund Fund Fund Fund -------- ------ -------- ------ Advertising 2.0% -- Internet 4.0% -- Aerospace/Defense 2.4% -- Investment Companies -- 3.6% Agriculture -- 0.6% Machinery-Diversified -- -- Auto Manufacturers 0.1% 0.3% Media 0.3% 1.1% Automobile ABS 4.7% -- Miscellaneous Manufacturing 6.3% 0.2% Banks 8.6% 15.8% Oil & Gas 3.4% 1.0% Beverages 2.9% -- Oil & Gas Services 2.7% -- Cash Equivalents 14.7% -- Other ABS 0.7% -- Chemicals 3.0% -- Pharmaceuticals 4.1% 0.7% Closed-end Funds -- 9.2% Pipelines 0.2% 0.6% Commercial MBS 5.6% -- Regional (state/provnc) -- 0.6% Computers 2.8% -- REITS -- 17.3% Cosmetics/Personal Care 1.3% 0.4% Retail 3.9% 0.6% Credit Card ABS -- 0.3% Savings & Loans -- 0.5% Diversified Financial Services 3.9% 21.1% Semiconductors 3.6% -- Electric 0.8% 5.6% Software 2.5% -- Electrical Components & Equipment 0.8% -- Sovereign 17.6% 6.0% Food -- 1.4% Telecommunications 1.9% 1.5% Forest Products & Paper -- 1.1% Transportation 0.4% 0.3% Healthcare-Products 2.8% -- WL Collateral CMO 6.3% 4.3% Holding Companies-Diversified -- 0.6% Insurance 3.4% 5.5% The investment concentrations for the Municipal Bond Funds as a percentage of net assets, by industry, as of July 31, 2005, were as follows: Intermediate Ohio Michigan Municipal Municipal Municipal Municipal Bond Bond Bond Bond Fund Fund Fund Fund --------- --------- --------- --------- Airport 6.3% 6.4% -- 3.9% Cash Equivalents 0.7% 2.3% 0.8% 1.0% Development 6.7% 6.8% 2.6% 5.0% Education 5.1% 1.2% 3.5% -- Facilities 2.1% 4.4% 6.6% 9.4% General 8.0% 5.3% 6.5% 5.3% General Obligation 10.5% 14.3% 15.7% 9.9% Higher Education 13.0% 3.5% 13.1% 7.2% Housing 7.8% 3.9% 3.1% 2.1% Medical 8.2% 8.1% 15.3% 15.0% Multifamily Housing -- 0.2% -- 0.5% Pollution -- 0.5% 7.6% 6.0% Power -- 6.9% 7.9% 1.7% School District 17.5% 14.5% 11.4% 13.9% Single Family Housing 4.4% 2.3% 1.2% 2.6% Student Loan 2.0% 5.9% -- 6.0% Transportation 3.9% 5.4% 4.2% 8.5% Utilities 0.5% 3.8% 0.7% -- Water 4.2% 4.4% -- 2.5% See notes to financial statements 116 Fifth Third Funds Notes to Schedules of Portfolio Investments, continued July 31, 2005 - -------------------------------------------------------------------------------- The investment concentrations for the Bond Funds as a percentage of net assets, by industry, as of July 31, 2005, were as follows: U. S. Intermediate Short Term Government Bond Bond Bond Bond Fund Fund Fund Fund ---------- ------------ ---------- ---------- Agency Collateral CMO -- 2.0% -- -- Agency Collateral PAC CMO -- -- 3.2% -- Auto Manufacturers 0.2% 0.9% 0.4% -- Automobile ABS 6.9% 3.7% 6.4% -- Banks 7.9% 8.3% 6.9% -- Beverages -- 0.2% -- -- Cash Equivalents 11.2% 13.9% 13.7% 1.6% Chemicals 0.7% 1.1% -- -- Commercial MBS 10.4% 17.2% 7.9% -- Commercial Services 0.7% 0.8% 0.3% -- Computers -- 0.3% 0.9% -- Construction Machinery -- -- 0.6% -- Credit Card ABS -- 1.6% 0.2% -- Development -- -- 0.3% -- Diversified Financial Services 8.6% 10.4% 8.3% -- Electric 1.0% 2.8% 0.6% -- Food 2.5% 0.3% 1.1% -- Forest Products & paper -- 0.3% -- -- Gas -- 1.1% 1.1% -- Healthcare-Services -- -- 1.0% -- Home Equity ABS -- 0.8% 1.1% -- Household Products/Wares -- 0.2% -- -- Insurance -- 1.4% 0.4% -- Media 1.2% 0.7% 0.5% -- Mining -- -- 0.4% -- Oil & Gas 0.9% 1.7% 0.2% -- Other ABS 5.1% 1.5% 0.6% -- Pipelines 0.2% 0.6% 1.0% -- REITS 0.5% 0.5% -- -- Retail 0.5% -- -- -- Savings & Loans 1.3% 0.9% -- -- Sovereign 54.9% 23.1% 34.1% 109.0% Telecommunications 1.1% 0.5% 1.6% -- Transportation -- 0.6% -- -- WL Collateral CMO 17.6% 16.0% 17.9% -- See notes to financial statements 117 Fifth Third Funds Statements of Assets and Liabilities July 31, 2005 (Amounts in thousands except per share amounts) - -------------------------------------------------------------------------------- Small Cap Mid Cap Quality Large Cap Growth Growth Growth Core Assets: Fund Fund Fund Fund -------- -------- -------- --------- Investments, at cost $237,842 $389,505 $843,113 $188,606 Net unrealized appreciation 61,643 132,899 174,970 18,032 -------- -------- -------- -------- Investments, at value 299,485 522,404 1,018,083 206,638 Investment in affiliates, at value (cost $5,371; $26,730; $90; $5,273; $6,248; $0, $1,055; $12,492; $3,297; $16,086; $0, respectively) 5,371 26,730 90 5,273 -------- -------- -------- -------- Total Investments 304,856 549,134 1,018,173 211,911 Cash -- -- -- -- Interest, dividends and other receivables 42 88 220 162 Receivable for investments sold 2,200 3,581 42,855 -- Receivable for Fund shares sold -- 43 17 9 Receivable from Advisor and affiliates -- -- -- 3 Prepaid expenses and other assets 17 33 41 12 -------- -------- -------- -------- Total Assets 307,115 552,879 1,061,306 212,097 -------- -------- -------- -------- Liabilities: Payable to Custodian -- -- -- -- Options written, at value (premiums received $0, $0, $0, $0, $0, $8, $0, $0, $0, $0 and, $0, respectively) -- -- -- -- Payable for investments purchased 1,286 12,628 42,484 -- Payable for securities loaned 65,350 95,287 117,696 16,933 Payable for Fund shares redeemed 21 46 394 8 Payable for variation margin on futures contracts 18 -- -- 46 Accrued expenses and other payables: Payable to Advisor and affiliates 153 317 644 125 Distribution and administrative services fees 7 17 56 6 Other 56 42 144 30 -------- -------- -------- -------- Total Liabilities 66,891 108,337 161,418 17,148 -------- -------- -------- -------- Net Assets: Paid-in Capital 164,125 333,392 832,387 216,905 Accumulated net investment income/(loss) (12) -- -- 20 Accumulated net realized gain/(loss) from investment transactions, option contracts and futures 14,071 (21,749) (107,469) (40,099) Net unrealized appreciation on investments, options and futures 62,040 132,899 174,970 18,123 -------- -------- -------- -------- Net Assets $240,224 $444,542 $899,888 $194,949 ======== ======== ======== ======== Market value of securities loaned $ 63,524 $ 91,242 $113,865 $ 16,458 ======== ======== ======== ======== Net Assets: Institutional Shares $213,892 $392,929 $707,766 $169,723 Class A Shares 22,714 41,921 165,836 24,026 Class B Shares 1,805 6,874 17,791 1,007 Class C Shares 618 1,600 5,238 193 Advisor Shares 1,195 1,218 3,257 NA Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA -------- -------- -------- -------- Total $240,224 $444,542 $899,888 $194,949 ======== ======== ======== ======== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 13,731 24,514 43,317 11,620 Class A Shares 1,497 2,672 10,333 1,667 Class B Shares 122 454 1,146 70 Class C Shares 42 110 346 13 Advisor Shares 79 78 205 NA Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA -------- -------- -------- -------- Total 15,471 27,828 55,347 13,370 ======== ======== ======== ======== Net Asset Value Institutional Shares $ 15.58 $ 16.03 $ 16.34 $ 14.61 ======== ======== ======== ======== Class A Shares-redemption price per share $ 15.17 $ 15.69 $ 16.05 $ 14.42 ======== ======== ======== ======== Class B Shares-offering price per share* $ 14.85 $ 15.16 $ 15.52 $ 14.46 ======== ======== ======== ======== Class C Shares-offering price per share* $ 14.86 $ 14.61 $ 15.12 $ 14.46 ======== ======== ======== ======== Advisor Shares $ 15.21 $ 15.56 $ 15.92 NA ======== ======== ======== ======== Select Shares NA NA NA NA ======== ======== ======== ======== Preferred Shares NA NA NA NA ======== ======== ======== ======== Trust Shares NA NA NA NA ======== ======== ======== ======== Maximum sales charge-Class A Shares 5.00% 5.00% 5.00% 5.00% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share (Class A Shares) $ 15.97 $ 16.52 $ 16.89 $ 15.18 ======== ======== ======== ======== Equity Micro Cap Small Cap Index Balanced Value Value Assets: Fund Fund Fund Fund --------- --------- --------- --------- Investments, at cost $ 251,464 $ 145,934 $ 143,753 $ 165,454 Net unrealized appreciation 220,306 12,148 53,897 23,836 --------- --------- --------- --------- Investments, at value 471,770 158,082 197,650 189,290 Investment in affiliates, at value (cost $5,371; $26,730; $90; $5,273; $6,248; $0, $1,055; $12,492; $3,297; $16,086; $0, respectively) 6,248 -- 1,055 12,492 --------- --------- --------- --------- Total Investments 478,018 158,082 198,705 201,782 Cash -- 228 -- -- Interest, dividends and other receivables 536 364 592 57 Receivable for investments sold -- -- 2,272 1,202 Receivable for Fund shares sold 5 30 74 27 Receivable from Advisor and affiliates 15 -- -- -- Prepaid expenses and other assets 26 31 26 9 --------- --------- --------- --------- Total Assets 478,600 158,735 201,669 203,077 --------- --------- --------- --------- Liabilities: Payable to Custodian -- -- 101 -- Options written, at value (premiums received $0, $0, $0, $0, $0, $8, $0, $0, $0, $0 and, $0, respectively) -- 2 -- -- Payable for investments purchased -- 9,482 524 -- Payable for securities loaned 57,984 14,651 23,129 37,661 Payable for Fund shares redeemed 93 132 118 --^ Payable for variation margin on futures contracts 59 -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 51 78 162 132 Distribution and administrative services fees 49 26 32 3 Other 79 34 24 13 --------- --------- --------- --------- Total Liabilities 58,315 24,405 24,090 37,809 --------- --------- --------- --------- Net Assets: Paid-in Capital 256,883 174,348 98,163 131,105 Accumulated net investment income/(loss) 697 122 -- -- Accumulated net realized gain/(loss) from investment transactions, option contracts and futures (57,798) (52,294) 25,519 10,327 Net unrealized appreciation on investments, options and futures 220,503 12,154 53,897 23,836 --------- --------- --------- --------- Net Assets $ 420,285 $ 134,330 $ 177,579 $ 165,268 ========= ========= ========= ========= Market value of securities loaned $ 56,045 $ 14,173 $ 22,306 $ 36,430 ========= ========= ========= ========= Net Assets: Institutional Shares $ 168,279 $ 59,868 $ 98,885 $ 158,505 Class A Shares 70,261 59,274 29,172 2,715 Class B Shares 4,399 10,957 7,348 1,142 Class C Shares 2,301 4,046 6,143 927 Advisor Shares 1,928 185 36,031 1,979 Select Shares 18,690 NA NA NA Preferred Shares 78,132 NA NA NA Trust Shares 76,295 NA NA NA --------- --------- --------- --------- Total $ 420,285 $ 134,330 $ 177,579 $ 165,268 ========= ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): 7,173 4,681 8,986 6,946 Institutional Shares 3,005 4,662 2,707 120 Class A Shares 189 872 696 51 Class B Shares 99 322 582 42 Class C Shares 83 15 3,365 88 Advisor Shares 797 NA NA NA Select Shares 3,332 NA NA NA Preferred Shares 3,253 NA NA NA Trust Shares --------- --------- --------- --------- 17,931 10,552 16,336 7,247 Total ========= ========= ========= ========= Net Asset Value Institutional Shares $ 23.46 $ 12.79 $ 11.00 $ 22.82 ========= ========= ========= ========= Class A Shares-redemption price per share $ 23.38 $ 12.71 $ 10.78 $ 22.68 ========= ========= ========= ========= Class B Shares-offering price per share* $ 23.24 $ 12.57 $ 10.56 $ 22.29 ========= ========= ========= ========= Class C Shares-offering price per share* $ 23.26 $ 12.55 $ 10.56 $ 22.25 ========= ========= ========= ========= Advisor Shares $ 23.35 $ 12.68 $ 10.71 $ 22.56 ========= ========= ========= ========= Select Shares $ 23.45 NA NA NA ========= ========= ========= ========= Preferred Shares $ 23.45 NA NA NA ========= ========= ========= ========= Trust Shares $ 23.45 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) $ 24.61 $ 13.38 $ 11.35 $ 23.87 ========= ========= ========= ========= Disciplined Multi Cap Large Cap LifeModel Value Value Aggressive Assets: Fund Fund Fund(SM) --------- ----------- --------- Investments, at cost $ 321,715 $ 518,782 $ 111,191 Net unrealized appreciation 114,734 137,480 24,384 --------- --------- --------- Investments, at value 436,449 656,262 135,575 Investment in affiliates, at value (cost $5,371; $26,730; $90; $5,273; $6,248; $0, $1,055; $12,492; $3,297; $16,086; $0, respectively) 3,297 16,086 -- --------- --------- --------- Total Investments 439,746 672,348 135,575# Cash -- -- -- Interest, dividends and other receivables 271 1,118 1 Receivable for investments sold 12,930 9,740 -- Receivable for Fund shares sold 146 119 80 Receivable from Advisor and affiliates -- -- 7 Prepaid expenses and other assets 15 35 7 --------- --------- --------- Total Assets 453,108 683,360 135,670 --------- --------- --------- Liabilities: Payable to Custodian -- -- -- Options written, at value (premiums received $0, $0, $0, $0, $0, $8, $0, $0, $0, $0 and, $0, respectively) -- -- -- Payable for investments purchased 10,347 9,503 -- Payable for securities loaned 63,202 66,221 -- Payable for Fund shares redeemed 89 26 7 Payable for variation margin on futures contracts -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 335 437 11 Distribution and administrative services fees 49 12 25 Other 35 53 16 --------- --------- --------- Total Liabilities 74,057 76,252 59 --------- --------- --------- Net Assets: Paid-in Capital 252,761 431,148 108,374 Accumulated net investment income/(loss) -- 524 -- Accumulated net realized gain/(loss) from investment transactions, option contracts and futures 11,556 37,956 2,853 Net unrealized appreciation on investments, options and futures 114,734 137,480 24,384 --------- --------- --------- Net Assets $ 379,051 $ 607,108 $ 135,611 ========= ========= ========= Market value of securities loaned $ 61,262 $ 64,052 $ -- ========= ========= ========= Net Assets: Institutional Shares $ 270,131 $ 574,251 $ 70,072 Class A Shares 39,433 24,805 47,172 Class B Shares 22,278 5,739 16,203 Class C Shares 4,553 2,313 2,164 Advisor Shares 42,656 NA NA Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA --------- --------- --------- Total $ 379,051 $ 607,108 $ 135,611 ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 10,375 38,083 4,879 Class A Shares 1,531 1,648 3,295 Class B Shares 887 378 1,150 Class C Shares 181 155 154 Advisor Shares 1,663 NA NA Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA --------- --------- --------- Total 14,637 40,264 9,478 ========= ========= ========= Net Asset Value Institutional Shares $ 26.04 $ 15.08 $ 14.36 ========= ========= ========= Class A Shares-redemption price per share $ 25.76 $ 15.05 $ 14.32 ========= ========= ========= Class B Shares-offering price per share* $ 25.11 $ 15.17 $ 14.08 ========= ========= ========= Class C Shares-offering price per share* $ 25.09 $ 14.94 $ 14.08 ========= ========= ========= Advisor Shares $ 25.65 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) $ 27.12 $ 15.84 $ 15.07 ========= ========= ========= - -------------- * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred dollars. # Represents investments in affiliates. See notes to financial statements 118 & 119 Fifth Third Funds Statements of Assets and Liabilities July 31, 2005 (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 $ 252,869 $ 460,257 $ 96,723 $ 57,920 Net unrealized appreciation/(depreciation) 41,847 36,960 10,255 2,309 ---------- ---------- ---------- ---------- Investments, at value 294,716 497,217 106,978 60,229 Investment in affiliates, at value (cost $0,$0,$0,$0, $4,030, $17,$0,$0,$0,$0,$0, respectively) -- -- -- -- ---------- ---------- ---------- ---------- Total Investments 294,716# 497,217# 106,978# 60,229# Cash -- -- -- -- Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0, $962, $0, $0 and $0, respectively) -- -- -- -- Interest, dividends and other receivables 4 4 1 2 Receivable for investments sold -- 1,474 -- -- Receivable for Fund shares sold 37 66 7 45 Receivable for forward foreign currency contracts -- -- -- -- Receivable for variation margin on futures contracts -- -- -- -- Reclaims receivable -- -- -- -- Receivable from Advisor and affiliates 13 19 5 4 Prepaid expenses and other assets 10 10 4 4 ---------- ---------- ---------- ---------- Total Assets 294,780 498,790 106,995 60,284 ---------- ---------- ---------- ---------- Liabilities: Payable to Custodian -- 302 -- -- Distributions payable -- -- -- -- Payable for investments purchased -- -- -- -- Payable for securities loaned -- -- -- -- Payable for Fund shares redeemed 109 115 108 7 Payable for forward foreign currency contracts -- -- -- -- Payable for variation margin on futures contracts -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 21 35 10 7 Distribution and administrative services fees 76 67 32 19 Other 31 41 12 9 ---------- ---------- ---------- ---------- Total Liabilities 237 560 162 42 ---------- ---------- ---------- ---------- Net Assets: Paid-in Capital 247,263 452,036 94,821 57,588 Accumulated net investment income/(loss) 143 628 153 128 Accumulated net realized gain/(loss) from investment transactions, futures and foreign currency 5,290 8,606 1,604 217 Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 41,847 36,960 10,255 2,309 ---------- ---------- ---------- ---------- Net Assets $ 294,543 $ 498,230 $ 106,833 $ 60,242 ========== ========== ========== ========== Market value of securities loaned $ -- $ -- $ -- $ -- ========== ========== ========== ========== Net Assets: Institutional Shares $ 110,379 $ 340,163 $ 38,606 $ 22,236 Class A Shares 125,130 106,044 41,446 20,014 Class B Shares 50,000 44,111 22,752 12,688 Class C Shares 9,034 7,912 4,029 5,304 Advisor Shares NA NA NA NA ---------- ---------- ---------- ---------- Total $ 294,543 $ 498,230 $ 106,833 $ 60,242 ========== ========== ========== ========== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 7,934 27,167 3,330 2,036 Class A Shares 9,009 8,480 3,580 1,836 Class B Shares 3,614 3,544 1,972 1,167 Class C Shares 653 635 349 488 Advisor Shares NA NA NA NA ---------- ---------- ---------- ---------- Total 21,210 39,826 9,231 5,527 ========== ========== ========== ========== Net Asset Value Institutional Shares $ 13.91 $ 12.52 $ 11.59 $ 10.92 ========== ========== ========== ========== Class A Shares-redemption price per share $ 13.89 $ 12.50 $ 11.58 $ 10.90 ========== ========== ========== ========== Class B Shares-offering price per share* $ 13.83 $ 12.45 $ 11.54 $ 10.87 ========== ========== ========== ========== Class C Shares-offering price per share* $ 13.83 $ 12.45 $ 11.54 $ 10.88 ========== ========== ========== ========== 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) $ 14.62 $ 13.16 $ 12.19 $ 11.47 ========== ========== ========== ========== Strategic Select International Income Stock Technology Equity Fund Fund Fund Fund ---------- ---------- ---------- ---------- Assets: Investments, at cost $ 154,171 $ 11,294 $ 53,178 $ 326,479 Net unrealized appreciation/(depreciation) 8,029 2,575 2,594 2,332 ---------- ---------- ---------- ---------- Investments, at value 162,200 13,869 55,772 328,811 Investment in affiliates, at value (cost $0,$0,$0,$0, $4,030, $17,$0,$0,$0,$0,$0, respectively) 4,030 17 -- -- ---------- ---------- ---------- ---------- Total Investments 166,230 13,886 55,772 328,811 Cash --^ -- -- 8,074 Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0, $962, $0, $0 and $0, respectively) -- -- -- 966 Interest, dividends and other receivables 1,071 2 2 594 Receivable for investments sold -- -- 7,548 4,706 Receivable for Fund shares sold 21 --^ -- -- Receivable for forward foreign currency contracts -- -- -- 1,897 Receivable for variation margin on futures contracts -- -- -- 41 Reclaims receivable -- -- -- 98 Receivable from Advisor and affiliates -- 1 -- 3 Prepaid expenses and other assets 17 27 30 37 ---------- ---------- ---------- ---------- Total Assets 167,339 13,916 63,352 345,227 ---------- ---------- ---------- ---------- Liabilities: Payable to Custodian -- -- 247 -- Distributions payable 574 -- -- -- Payable for investments purchased 500 -- 7,506 3,105 Payable for securities loaned -- -- 8,901 22,137 Payable for Fund shares redeemed 74 9 8 1 Payable for forward foreign currency contracts -- -- -- 2,008 Payable for variation margin on futures contracts -- -- -- 61 Accrued expenses and other payables: Payable to Advisor and affiliates 148 10 43 325 Distribution and administrative services fees 41 2 3 12 Other 42 8 15 36 ---------- ---------- ---------- ---------- Total Liabilities 1,379 29 16,723 27,685 ---------- ---------- ---------- ---------- Net Assets: Paid-in Capital 158,007 28,855 92,211 341,328 Accumulated net investment income/(loss) (63) -- -- 4,804 Accumulated net realized gain/(loss) from investment transactions, futures and foreign currency (13) (17,543) (48,176) (30,706) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 8,029 2,575 2,594 2,116 ---------- ---------- ---------- ---------- Net Assets $ 165,960 $ 13,887 $ 46,629 $ 317,542 ========== ========== ========== ========== Market value of securities loaned $ -- $ -- $ 8,596 $ 21,586 ========== ========== ========== ========== Net Assets: Institutional Shares $ 97,921 $ 5,973 $ 38,941 $ 282,476 Class A Shares 4,423 7,087 5,699 20,509 Class B Shares 1,909 311 1,160 1,280 Class C Shares 29,176 516 590 962 Advisor Shares 32,531 NA 239 12,315 ---------- ---------- ---------- ---------- Total $ 165,960 $ 13,887 $ 46,629 $ 317,542 ========== ========== ========== ========== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 8,488 275 3,911 26,176 Class A Shares 384 332 580 1,898 Class B Shares 166 15 122 120 Class C Shares 2,551 25 62 93 Advisor Shares 2,828 NA 25 1,143 ---------- ---------- ---------- ---------- Total 14,417 647 4,700 29,430 ========== ========== ========== ========== Net Asset Value Institutional Shares $ 11.54 $ 21.71 $ 9.96 $ 10.79 ========== ========== ========== ========== Class A Shares-redemption price per share $ 11.51 $ 21.34 $ 9.83 $ 10.80 ========== ========== ========== ========== Class B Shares-offering price per share* $ 11.51 $ 20.83 $ 9.48 $ 10.66 ========== ========== ========== ========== Class C Shares-offering price per share* $ 11.43 $ 20.27 $ 9.45 $ 10.39 ========== ========== ========== ========== Advisor Shares $ 11.50 NA $ 9.73 $ 10.78 ========== ========== ========== ========== 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) $ 12.12 $ 22.46 $ 10.35 $ 11.37 ========== ========== ========== ========== Intermediate Short Term Bond Bond Bond Fund Fund Fund ---------- ---------- ---------- Assets: Investments, at cost $ 415,990 $ 658,047 $ 393,549 Net unrealized appreciation/(depreciation) 1,810 (2,162) (4,592) ---------- ---------- ---------- Investments, at value 417,800 655,885 388,957 Investment in affiliates, at value (cost $0,$0,$0,$0, $4,030, $17,$0,$0,$0,$0,$0, respectively) -- -- -- ---------- ---------- ---------- Total Investments 417,800 655,885 388,957 Cash -- -- -- Foreign currency, at value (cost $0, $0, $0, $0, $0, $0, $0, $962, $0, $0 and $0, respectively) -- -- -- Interest, dividends and other receivables 1,480 4,861 2,414 Receivable for investments sold 2,953 7,419 -- Receivable for Fund shares sold 5 -- 44 Receivable for forward foreign currency contracts -- -- -- Receivable for variation margin on futures contracts -- -- -- Reclaims receivable -- -- -- Receivable from Advisor and affiliates 6 7 5 Prepaid expenses and other assets 31 28 16 ---------- ---------- ---------- Total Assets 422,275 668,200 391,436 ---------- ---------- ---------- Liabilities: Payable to Custodian -- 1,369 1 Distributions payable -- -- -- Payable for investments purchased 79,856 7,709 -- Payable for securities loaned 29,073 80,375 39,788 Payable for Fund shares redeemed 32 54 40 Payable for forward foreign currency contracts -- -- -- Payable for variation margin on futures contracts -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 174 299 166 Distribution and administrative services fees 8 8 4 Other 35 75 49 ---------- ---------- ---------- Total Liabilities 109,178 89,889 40,048 ---------- ---------- ---------- Net Assets: Paid-in Capital 310,320 608,552 375,517 Accumulated net investment income/(loss) 48 59 63 Accumulated net realized gain/(loss) from investment transactions, futures and foreign currency 919 (28,138) (19,600) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 1,810 (2,162) (4,592) ---------- ---------- ---------- Net Assets $ 313,097 $ 578,311 $ 351,388 ========== ========== ========== Market value of securities loaned $ 28,179 $ 78,064 $ 38,706 ========== ========== ========== Net Assets: Institutional Shares $ 292,043 $ 544,101 $ 333,909 Class A Shares 15,876 29,798 17,117 Class B Shares 3,907 3,316 NA Class C Shares 649 1,096 362 Advisor Shares 622 NA NA ---------- ---------- ---------- Total $ 313,097 $ 578,311 $ 351,388 ========== ========== ========== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 28,996 55,544 35,653 Class A Shares 1,577 3,034 1,829 Class B Shares 388 340 NA Class C Shares 64 112 39 Advisor Shares 62 NA NA ---------- ---------- ---------- Total 31,087 59,030 37,521 ========== ========== ========== Net Asset Value Institutional Shares $ 10.07 $ 9.80 $ 9.37 ========== ========== ========== Class A Shares-redemption price per share $ 10.07 $ 9.82 $ 9.36 ========== ========== ========== Class B Shares-offering price per share* $ 10.07 $ 9.77 NA ========== ========== ========== Class C Shares-offering price per share* $ 10.07 $ 9.79 $ 9.36 ========== ========== ========== Advisor Shares $ 10.07 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) $ 10.57 $ 10.18 $ 9.70 ========== ========== ========== - -------------- * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred dollars. # Represents investments in affiliates. See notes to financial statements 120 & 121 Fifth Third Funds Statements of Assets and Liabilities July 31, 2005 (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 $ 70,356 $ 51,464 $ 203,082 $ 137,063 $ 80,590 Net unrealized appreciation (367) 2,485 6,401 3,814 251 ---------- ---------- ------------ ------------ ------------ Total Investments 69,989 53,949 209,483 140,877 80,841 Interest, dividends and other receivables 417 623 2,259 1,494 903 Receivable for investments sold -- -- 3,911 -- -- Receivable from Advisor and affiliates -- 2 -- -- 2 Prepaid expenses and other assets 23 11 24 24 6 ---------- ---------- ------------ ------------ ------------ Total Assets 70,429 54,585 215,677 142,395 81,752 ---------- ---------- ------------ ------------ ------------ Liabilities: Payable to Custodian -- -- 1,593 -- -- Payable for investments purchased 7,019 1,067 4,687 1,742 1,261 Payable for Fund shares redeemed 57 --^ -- 25 -- Accrued expenses and other payables: Payable to Advisor and affiliates 28 28 82 73 36 Distribution and administrative services fees 8 2 1 13 2 Other 13 13 28 19 17 ---------- ---------- ------------ ------------ ------------ Total Liabilities 7,125 1,110 6,391 1,872 1,316 ---------- ---------- ------------ ------------ ------------ Net Assets: Paid-in Capital 63,380 48,818 200,466 136,105 80,226 Accumulated net investment income/(loss) 96 -- 8 72 -- Accumulated net realized gain/(loss) from investment transactions 195 2,172 2,411 532 (41) Net unrealized appreciation on investments (367) 2,485 6,401 3,814 251 ---------- ---------- ------------ ------------ ------------ Net Assets $ 63,304 $ 53,475 $ 209,286 $ 140,523 $ 80,436 ========== ========== ============ ============ ============ Net Assets: Institutional Shares $ 33,246 $ 49,802 $ 205,078 $ 104,554 $ 74,099 Class A Shares 27,214 1,637 3,064 27,870 4,713 Class B Shares NA 1,479 987 4,279 1,175 Class C Shares 2,844 179 157 3,820 449 Advisor Shares NA 378 NA NA NA ---------- ---------- ------------ ------------ ------------ Total $ 63,304 $ 53,475 $ 209,286 $ 140,523 $ 80,436 ========== ========== ============ ============ ============ Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 3,298 4,946 19,858 10,210 7,389 Class A Shares 2,696 162 297 2,720 470 Class B Shares NA 147 96 427 117 Class C Shares 284 18 15 375 45 Advisor Shares NA 38 NA NA NA ---------- ---------- ------------ ------------ ------------ Total 6,278 5,311 20,266 13,732 8,021 ========== ========== ============ ============ ============ Net Asset Value Institutional Shares $ 10.08 $ 10.07 $ 10.33 $ 10.24 $ 10.03 ========== ========== ============ ============ ============ Class A Shares-redemption price per share $ 10.09 $ 10.11 $ 10.33 $ 10.25 $ 10.02 ========== ========== ============ ============ ============ Class B Shares-offering price per share* NA $ 10.04 $ 10.31 $ 10.03 $ 10.02 ========== ========== ============ ============ ============ Class C Shares-offering price per share* $ 10.01 $ 10.05 $ 10.33 $ 10.20 $ 10.02 ========== ========== ============ ============ ============ Advisor Shares NA $ 10.06 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) $ 10.59 $ 10.61 $ 10.70 $ 10.76 $ 10.52 ========== ========== ============ ============ ============ - ------------- * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred dollars. See notes to financial statements 122 Fifth Third Funds Statements of Operations For the year ended July 31, 2005 (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 $ 173 $ 260 $ 337 $ 84 $ 102 Dividend income 526 4,003 11,956 2,300 10,005 Income from securities lending 93 67 86 8 59 --------- --------- --------- --------- --------- Total Investment Income 792 4,330 12,379 2,392 10,166 --------- --------- --------- --------- --------- Expenses: Investment advisory fees 1,679 3,271 7,980 796 1,398 Administrative fees 430 727 1,761 200 861 Distribution services fees-Class A Shares 60 113 471 63 180 Distribution services fees-Class B Shares 18 67 190 9 42 Distribution services fees-Class C Shares 6 13 46 1 17 Distribution services fees-Advisor Shares 6 5 15 NA 8 Administrative services fees-Class C Shares 2 4 15 --^ 6 Administrative services fees-Select Shares NA NA NA NA 13 Administrative services fees-Preferred Shares NA NA NA NA 160 Administrative services fees-Trust Shares NA NA NA NA 196 Accounting fees 95 127 225 66 189 Registration and filing fees 35 57 70 18 61 Transfer and dividend disbursing agent fees 94 150 408 58 169 Custody fees 31 28 51 25 74 Trustees' fees and expenses 7 12 30 4 15 Other expenses 61 85 266 32 150 --------- --------- --------- --------- --------- Total expenses 2,524 4,659 11,528 1,272 3,539 --------- --------- --------- --------- --------- Less:Waiver and/or reimbursement from Advisor and/or affiliates -- -- -- (150) (2,016) Transfer and dividend disbursing agent fees waived (4) (11) (12) (1) (18) --------- --------- --------- --------- --------- Net Expenses 2,520 4,648 11,516 1,121 1,505 --------- --------- --------- --------- --------- Net Investment Income/(Loss) (1,728) (318) 863 1,271 8,661 --------- --------- --------- --------- --------- Realized and Unrealized Gains/(Losses) from Investments and Futures: Net realized gains on investment transactions 21,831 3,529 40,777 6,423 69,597+ Net realized gains on futures transactions 811 -- -- 138 715 Change in unrealized appreciation/depreciation on investments and futures 24,776 83,951 71,107 9,054 (14,823) --------- --------- --------- --------- --------- Net realized and unrealized gains on investments and futures 47,418 87,480 111,884 15,615 55,489 --------- --------- --------- --------- --------- Change in net assets resulting from operations $ 45,690 $ 87,162 $ 112,747 $ 16,886 $ 64,150 ========= ========= ========= ========= ========= - ----------- ^ Represents fewer than five hundred dollars. + Includes realized gains from in-kind transactions in the amount of $65,877. See notes to financial statements 123 Fifth Third Funds Statements of Operations For the year ended July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Disciplined Micro Cap Small Cap Multi Cap Large Cap LifeModel Balanced Value Value Value Value Aggressive Fund Fund Fund Fund Fund Fund(SM) --------- --------- --------- --------- ----------- --------- Investment Income: Interest income $ 2,257 $ 122 $ 187 $ 525 $ 365 -- Dividend income 2,446 2,768 1,156 5,589 14,968 $ 1,489# Income from securities lending 10 20 36 89 55 -- --------- --------- --------- --------- --------- --------- Total Investment Income 4,713 2,910 1,379 6,203 15,388 1,489 --------- --------- --------- --------- --------- --------- Expenses: Investment advisory fees 1,299 2,265 1,250 3,647 5,276 182 Administrative fees 295 407 250 649 1,157 212 Distribution services fees-Class A Shares 169 93 6 90 59 108 Distribution services fees-Class B Shares 119 71 8 204 52 141 Distribution services fees-Class C Shares 33 44 5 35 16 15 Distribution services fees-Advisor Shares 1 200 9 208 NA NA Administrative services fees-Class C Shares 11 15 2 12 5 5 Accounting fees 91 92 60 119 162 61 Registration and filing fees 55 61 11 31 57 14 Transfer and dividend disbursing agent fees 108 127 48 159 181 71 Custody fees 28 39 19 30 35 14 Trustees' fees and expenses 5 6 3 10 19 3 Other expenses 43 65 24 92 162 30 --------- --------- --------- --------- --------- --------- Total expenses 2,257 3,485 1,695 5,286 7,181 856 --------- --------- --------- --------- --------- --------- Less:Waiver and/or reimbursement from Advisor and/or affiliates (263) -- -- -- -- (489) Transfer and dividend disbursing agent fees waived (1) (5) (1) (11) (9) (1) Distribution services-Class B Shares, Class C Shares and Advisor Shares waived -- (166) -- -- -- -- --------- --------- --------- --------- --------- --------- Net Expenses 1,993 3,314 1,694 5,275 7,172 366 --------- --------- --------- --------- --------- --------- Net Investment Income/(Loss) 2,720 (404) (315) 928 8,216 1,123 --------- --------- --------- --------- --------- --------- Realized and Unrealized Gains/(Losses) from Investments and Options: Net realized gains/(losses) on investment transactions and options 7,493 37,827 12,474 24,985 52,351 637+ Realized gain distributions from underlying funds -- -- -- -- -- 2,976 Change in unrealized appreciation/depreciation on investments and options 3,518 (9,592) 18,099 46,090 37,251 14,201 --------- --------- --------- --------- --------- --------- Net realized and unrealized gains on investments and options 11,011 28,235 30,573 71,075 89,602 17,814 --------- --------- --------- --------- --------- --------- Change in net assets resulting from operations $ 13,731 $ 27,831 $ 30,258 $ 72,003 $ 97,818 $ 18,937 ========= ========= ========= ========= ========= ========= LifeModel LifeModel Moderately LifeModel Moderately LifeModel Strategic Aggressive Moderate Conservative Conservative Income Fund(SM) Fund(SM) Fund(SM) Fund(SM) Fund ----------- --------- ------------ ------------ --------- Investment Income: Interest income -- -- -- -- $ 2,416 Dividend income $ 4,494# $ 10,951# $ 2,695# $ 1,828# 7,589 Income from securities lending -- -- -- -- -- --------- --------- --------- --------- --------- Total Investment Income 4,494 10,951 2,695 1,828 10,005 --------- --------- --------- --------- --------- Expenses: Investment advisory fees 396 730 160 89 1,717 Administrative fees 463 853 188 104 313 Distribution services fees-Class A Shares 284 262 103 58 7 Distribution services fees-Class B Shares 451 410 225 135 11 Distribution services fees-Class C Shares 65 59 27 44 260 Distribution services fees-Advisor Shares NA NA NA NA 189 Administrative services fees-Class C Shares 22 20 9 15 87 Accounting fees 85 131 61 61 92 Registration and filing fees 26 20 12 14 32 Transfer and dividend disbursing agent fees 132 163 56 40 91 Custody fees 20 26 14 11 28 Trustees' fees and expenses 8 14 3 2 6 Other expenses 62 114 29 13 49 --------- --------- --------- --------- --------- Total expenses 2,014 2,802 887 586 2,882 --------- --------- --------- --------- --------- Less:Waiver and/or reimbursement from Advisor and/or affiliates (972) (1,654) (436) (287) -- Transfer and dividend disbursing agent fees waived (8) (8) (1) (1) (1) Distribution services-Class B Shares, Class C Shares -- -- -- -- -- and Advisor Shares waived --------- --------- --------- --------- --------- 1,034 1,140 450 298 2,881 Net Expenses --------- --------- --------- --------- --------- Net Investment Income/(Loss) 3,460 9,811 2,245 1,530 7,124 --------- --------- --------- --------- --------- Realized and Unrealized Gains/(Losses) from Investments and Options: Net realized gains/(losses) on investment transactions and options 1,446+ 2,848+ 794+ (11)+ 481 Realized gain distributions from underlying funds 4,937 7,386 1,270 544 -- Change in unrealized appreciation/depreciation on investments and options 23,784 28,761 4,723 1,359 5,346 --------- --------- --------- --------- --------- Net realized and unrealized gains on investments and options 30,167 38,995 6,787 1,892 5,827 --------- --------- --------- --------- --------- Change in net assets resulting from operations $ 33,627 $ 48,806 $ 9,032 $ 3,422 $ 12,951 ========= ========= ========= ========= ========= - ----------- # Represents income from affiliates. + Represents realized gains/(losses) from investment transactions with affiliates. See notes to financial statements 124 & 125 Fifth Third Funds Statements of Operations For the year ended July 31, 2005 (Amounts in thousands) - -------------------------------------------------------------------------------- Select International Intermediate Stock Technology Equity Bond Bond Fund Fund Fund Fund Fund -------- ---------- ------------- -------- ------------ Investment Income: Interest income $ 9 $ 4 $ 179 $ 11,627 $ 27,849 Dividend income 101 66 9,747 245 220 Foreign tax withholding -- -- (667) -- -- Income from securities lending 1 36 256 21 123 -------- -------- ------------- -------- ------------ Total Investment Income 111 106 9,515 11,893 28,192 -------- -------- ------------- -------- ------------ Expenses: Investment advisory fees 123 469 3,812 1,757 3,489 Administrative fees 27 93 679 524 1,113 Distribution services fees-Class A Shares 20 16 58 49 83 Distribution services fees-Class B Shares 4 13 10 42 37 Distribution services fees-Class C Shares 4 10 6 5 10 Distribution services fees-Advisor Shares NA 1 65 3 NA Administrative services fees-Class C Shares 1 3 2 2 3 Accounting fees 62 74 266 121 181 Registration and filing fees 47 47 74 55 49 Transfer and dividend disbursing agent fees 34 48 127 98 175 Custody fees 7 16 238 35 40 Trustees' fees and expenses --^ 1 11 9 19 Other expenses 8 15 97 73 163 -------- -------- ------------- -------- ------------ Total expenses 337 806 5,445 2,773 5,362 -------- -------- ------------- -------- ------------ Less:Waiver and/or reimbursement from Advisor and/or affiliates (83) -- (147) (368) (400) Transfer and dividend disbursing agent fees waived (1) (1) (11) (10) (9) Distribution services-Class A Shares and Class B Shares waived -- -- -- -- (28) -------- -------- ------------- -------- ------------ Net Expenses 253 805 5,287 2,395 4,925 -------- -------- ------------- -------- ------------ Net Investment Income/(Loss) (142) (699) 4,228 9,498 23,267 -------- -------- ------------- -------- ------------ Realized and Unrealized Gains/(Losses) from Investments, Futures and Foreign Currency: Net realized gains/(losses) on investment and foreign currency transactions 245 3,738 23,657 6,278 4,672 Net realized gains on futures transactions -- -- 1,695 -- -- Change in unrealized appreciation/depreciation on investments, futures and foreign currency 1,776 4,482 34,124 (2,694) (8,592) -------- -------- ------------- -------- ------------ Net realized and unrealized gains/(losses) on investments, futures and foreign currency 2,021 8,220 59,476 3,584 (3,920) -------- -------- ------------- -------- ------------ Change in net assets resulting from operations $ 1,879 $ 7,521 $ 63,704 $ 13,082 $ 19,347 ======== ======== ============= ======== ============ U.S. Intermediate Ohio Michigan Short Term Government Municipal Municipal Municipal Municipal Bond Bond Bond Bond Bond Bond Fund Fund Fund Fund Fund Fund ---------- ---------- --------- ------------ --------- --------- Investment Income: Interest income $ 14,354 $ 2,553 $ 2,661 $ 9,649 $ 6,376 $ 3,278 Dividend income 276 39 16 35 28 18 Foreign tax withholding -- -- -- -- -- -- Income from securities lending 109 -- -- -- -- -- ---------- ---------- --------- ------------ --------- --------- Total Investment Income 14,739 2,592 2,677 9,684 6,404 3,296 ---------- ---------- --------- ------------ --------- --------- Expenses: Investment advisory fees 2,387 382 318 1,284 846 438 Administrative fees 838 122 112 410 270 171 Distribution services fees-Class A Shares 59 73 5 9 71 15 Distribution services fees-Class B Shares NA NA 15 11 45 14 Distribution services fees-Class C Shares 4 27 2 2 30 7 Distribution services fees-Advisor Shares NA NA 2 NA NA NA Administrative services fees-Class C Shares 1 9 1 1 10 2 Accounting fees 140 60 82 104 74 78 Registration and filing fees 30 39 24 42 29 10 Transfer and dividend disbursing agent fees 129 34 36 70 54 40 Custody fees 35 14 13 23 18 15 Trustees' fees and expenses 15 2 2 7 5 3 Other expenses 123 19 14 58 41 26 ---------- ---------- --------- ------------ --------- --------- Total expenses 3,761 781 626 2,021 1,493 819 ---------- ---------- --------- ------------ --------- --------- Less:Waiver and/or reimbursement from Advisor and/or affiliates (191) (104) (152) (369) (123) (117) Transfer and dividend disbursing agent fees waived (6) -- -- (1) -- -- Distribution services-Class A Shares and Class B Shares waived -- -- -- (8) -- (6) ---------- ---------- --------- ------------ --------- --------- Net Expenses 3,564 677 474 1,643 1,370 696 ---------- ---------- --------- ------------ --------- --------- Net Investment Income/(Loss) 11,175 1,915 2,203 8,041 5,034 2,600 ---------- ---------- --------- ------------ --------- --------- Realized and Unrealized Gains/(Losses) from Investments, Futures and Foreign Currency: (3,173)+ 519 2,624 3,539 616 97 Net realized gains/(losses) on investment and foreign currency transactions -- -- -- -- -- -- Net realized gains on futures transactions Change in unrealized appreciation/depreciation on investments, futures and foreign currency (2,091) (744) (2,137) (4,799) (1,635) (1,219) ---------- ---------- --------- ------------ --------- --------- Net realized and unrealized gains/(losses) on investments, futures and foreign currency (5,264) (225) 487 (1,260) (1,019) (1,122) ---------- ---------- --------- ------------ --------- --------- Change in net assets resulting from operations $ 5,911 $ 1,690 $ 2,690 $ 6,781 $ 4,015 $ 1,478 ========== ========== ========= ============ ========= ========= - ---------------- ^ Represents fewer than five hundred dollars. + Includes realized losses from in-kind transactions in the amount of $323. See notes to financial statements 126 & 127 Fifth Third Funds Statements of Changes in Net Assets (Amounts in thousands) - -------------------------------------------------------------------------------- Small Cap Mid Cap Growth Fund Growth Fund Quality Growth Fund --------------------- --------------------- ------------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 --------- --------- --------- --------- ----------- ----------- Change in Net Assets: Operations: Net investment income/(loss) $ (1,728) $ (2,563) $ (318) $ (3,032) $ 863 $ (3,706) Net realized gains/(losses) on investment transactions and option contracts 21,831 122,151 3,529 18,823 40,777 (1,831) Net realized gains on futures transactions 811 1,907 -- -- -- -- Net change in unrealized appreciation/depreciation on investments, options and futures 24,776 (79,194) 83,951 14,211 71,107 28,290 --------- --------- --------- --------- ----------- ----------- Change in net assets resulting from operations 45,690 42,301 87,162 30,002 112,747 22,753 --------- --------- --------- --------- ----------- ----------- Distributions from net investment income: Institutional Shares -- -- -- -- (1,869) -- Class A Shares -- -- -- -- (341) -- Class B Shares -- -- -- -- (3) -- Class C Shares -- -- -- -- (1) -- Advisor Shares -- -- -- -- (4) -- Select Shares NA NA NA NA NA NA Preferred Shares NA NA NA NA NA NA Trust Shares NA NA NA NA NA NA Distributions from net realized gains: Institutional Shares (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) -- -- (2,218) -- --------- --------- --------- --------- ----------- ----------- Change in net assets from Fund share transactions (13,767) (161,358) (37,413) (13,609) (345,41) 74,523 --------- --------- --------- --------- ----------- ----------- Change in net assets (12,903) (157,590) 49,749 16,393 (234,88) 97,276 Net Assets: Beginning of period 253,127 410,717 394,793 378,400 1,134,770 1,037,494 --------- --------- --------- --------- ----------- ----------- End of period $ 240,224 $ 253,127 $ 444,542 $ 394,793 $ 899,888 $ 1,134,770 ========= ========= ========= ========= =========== =========== Accumulated Net Investment Income/(Loss) $ (1,742) $ (14) $ (318) $ -- $ (1,355) $ -- ========= ========= ========= ========= =========== =========== Large Cap Core Fund Equity Index Fund ----------------------- ----------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004(a) --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income/(loss) $ 1,271 $ 1,170 $ 8,661 $ 7,891 Net realized gains/(losses) on investment transactions and option contracts 6,423 13,266 69,597 27,907 Net realized gains on futures transactions 138 629 715 1,865 Net change in unrealized appreciation/depreciation on investments, options and futures 9,054 4,314 (14,823) 35,942 --------- --------- --------- --------- Change in net assets resulting from operations 16,886 19,379 64,150 73,605 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (1,019) (1,093) (3,630) (4,473) Class A Shares (264) (175) (1,253) (898) Class B Shares (3) --^ (42) (21) Class C Shares --^ --^ (22) (11) Advisor Shares NA NA (24) (9) Select Shares NA NA (306) (93) Preferred Shares NA NA (1,755) (1,664) Trust Shares NA NA (1,348) (962) 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 (4,061) (1,268) (8,380) (8,131) --------- --------- --------- --------- Change in net assets from Fund share transactions 65,388 (104,527) (170,144) (152,194) --------- --------- --------- --------- Change in net assets 78,213 (86,416) (114,374) (86,720) Net Assets: Beginning of period 116,736 203,152 534,659 621,379 --------- --------- --------- --------- End of period $ 194,949 $ 116,736 $ 420,285 $ 534,659 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 24 $ 39 $ 697 $ 416 ========= ========= ========= ========= Balanced Fund Micro Cap Value Fund ----------------------- ----------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income/(loss) $ 2,720 $ 2,167 $ (404) $ (890) Net realized gains/(losses) on investment transactions and option contracts 7,493 15,483 37,827 26,765 Net realized gains on futures transactions -- -- -- -- Net change in unrealized appreciation/depreciation on investments, options and futures 3,518 708 (9,592) 32,423 --------- --------- --------- --------- Change in net assets resulting from operations 13,731 18,358 27,831 58,298 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (1,594) (1,777) -- -- Class A Shares (1,180) (801) -- -- Class B Shares (121) (36) -- -- Class C Shares (44) (14) -- -- Advisor Shares (3) (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 (2,942) (2,629) (16,489) (12,151) --------- --------- --------- --------- Change in net assets from Fund share transactions (66,996) (95,354) (85,038) 55,393 --------- --------- --------- --------- Change in net assets (56,207) (79,625) (73,696) 101,540 Net Assets: Beginning of period 190,537 270,162 251,275 149,735 --------- --------- --------- --------- End of period $ 134,330 $ 190,537 $ 177,579 $ 251,275 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ (18) $ 204 $ (404) $ -- ========= ========= ========= ========= - ------------ (a) Reflects operations for the period from October 20, 2003 (date of commencement of operations) to July 31, 2004 for Select, Preferred and Trust Shares. ^ Represents fewer than five hundred dollars. See notes to financial statements 128 & 129 Fifth Third Funds Statements of Changes in Net Assets (Amounts in thousands) - -------------------------------------------------------------------------------- Small Cap Multi Cap Disciplined Large Cap Value Fund Value Fund Value Fund ----------------------- --------------------- --------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 --------- --------- --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income/(loss) $ (315) $ (214) $ 928 $ 408 $ 8,216 $ 6,352 Net realized gains/(losses) on investment transactions 12,474 15,827 24,985 16,925 52,351 19,590 Realized gain distributions from underlying funds -- -- -- -- -- -- Net change in unrealized appreciation/depreciation on investments 18,099 (1,332) 46,090 31,860 37,251 53,831 --------- --------- --------- --------- --------- --------- Change in net assets resulting from operations 30,258 14,281 72,003 49,193 97,818 79,773 --------- --------- --------- --------- --------- --------- Distributions from net investment income: Institutional Shares -- (67) (1,146) (490) (7,923) (6,088) Class A Shares -- --^ (74) (19) (241) (202) Class B Shares -- -- -- -- (14) (13) Class C Shares -- -- -- -- (6) (6) Advisor Shares -- -- (14) -- NA NA Distributions from net realized gains: Institutional Shares (10,543) (3,928) (15,051) (644) (16,850) (12,613) Class A Shares (219) (30) (2,088) (87) (655) (566) Class B Shares (60) (8) (1,156) (52) (134) (120) Class C Shares (46) (17) (289) (9) (57) (40) Advisor Shares (140) (21) (2,387) (135) NA NA --------- --------- --------- --------- --------- --------- Change in net assets from shareholder distributions (11,008) (4,071) (22,205) (1,436) (25,880) (19,648) --------- --------- --------- --------- --------- --------- Change in net assets from Fund share transactions 33,727 28,748 (1,733) 27,907 (125,327) 246,013 --------- --------- --------- --------- --------- --------- Change in net assets 52,977 38,958 48,065 75,664 (53,389) 306,138 Net Assets: Beginning of period 112,291 73,333 330,986 255,322 660,497 354,359 --------- --------- --------- --------- --------- --------- End of period $ 165,268 $ 112,291 $ 379,051 $ 330,986 $ 607,108 $ 660,497 ========= ========= ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ (315) $ -- $ (145) $ -- $ 524 $ 492 ========= ========= ========= ========= ========= ========= LifeModel LifeModel Moderately Aggressive Fund(SM) Aggressive Fund(SM) ------------------------ ------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 Change in Net Assets: --------- --------- --------- --------- Operations: Net investment income/(loss) $ 1,123 $ 659 $ 3,460 $ 2,189 Net realized gains/(losses) on investment transactions 637+ 642+ 1,446+ 1,450+ Realized gain distributions from underlying funds 2,976 773 4,937 1,350 Net change in unrealized appreciation/depreciation on investments 14,201 3,010 23,784 5,940 --------- --------- --------- --------- Change in net assets resulting from operations 18,937 5,084 33,627 10,929 --------- --------- --------- --------- Distributions from net investment income: (680) (386) (1,539) (1,006) Institutional Shares (374) (223) (1,532) (951) Class A Shares (72) (55) (276) (169) Class B Shares (9) (10) (52) (30) Class C Shares NA NA NA NA Advisor Shares Distributions from net realized gains: Institutional Shares (346) (499) (537) (663) Class A Shares (248) (309) (650) (707) Class B Shares (81) (96) (257) (250) Class C Shares (11) (19) (50) (39) Advisor Shares NA NA NA NA --------- --------- --------- --------- Change in net assets from shareholder distributions (1,821) (1,597) (4,893) (3,815) --------- --------- --------- --------- Change in net assets from Fund share transactions 14,139 54,239 41,124 107,096 --------- --------- --------- --------- Change in net assets 31,255 57,726 69,858 114,210 Net Assets: Beginning of period 104,356 46,630 224,685 110,475 --------- --------- --------- --------- End of period $ 135,611 $ 104,356 $ 294,543 $ 224,685 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ (12) $ -- $ 143 $ 82 ========= ========= ========= ========= LifeModel LifeModel Moderately Moderate Fund(SM) Conservative Fund(SM) ------------------------ ------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income/(loss) $ 9,811 $ 4,402 $ 2,245 $ 1,854 Net realized gains/(losses) on investment transactions 2,848+ 1,610+ 794+ 1,320+ Realized gain distributions from underlying funds 7,386 1,019 1,270 466 Net change in unrealized appreciation/depreciation on investments 28,761 (1,694) 4,723 1,210 --------- --------- --------- --------- Change in net assets resulting from operations 48,806 5,337 9,032 4,850 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (7,125) (2,668) (970) (867) Class A Shares (1,978) (1,065) (878) (691) Class B Shares (479) (250) (321) (217) Class C Shares (88) (44) (51) (33) Advisor Shares NA NA NA NA Distributions from net realized gains: Institutional Shares (768) (643) (301) (677) Class A Shares (240) (561) (307) (563) Class B Shares (93) (246) (173) (264) Class C Shares (17) (40) (27) (30) Advisor Shares NA NA NA NA --------- --------- --------- --------- Change in net assets from shareholder distributions (10,788) (5,517) (3,028) (3,342) --------- --------- --------- --------- Change in net assets from Fund share transactions 2,644 341,253 (2,817) 32,177 --------- --------- --------- --------- Change in net assets 40,662 341,073 3,187 33,685 Net Assets: Beginning of period 457,568 116,495 103,646 69,961 --------- --------- --------- --------- End of period $ 498,230 $ 457,568 $ 106,833 $ 103,646 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 628 $ 487 $ 153 $ 128 ========= ========= ========= ========= - ----------------- ^ Represents fewer than five hundred dollars. + Represents realized gains/(losses) from investment transactions with affiliates. See notes to financial statements 130 & 131 Fifth Third Funds Statements of Changes in Net Assets (Amounts in thousands) - -------------------------------------------------------------------------------- LifeModel Strategic Select Conservative Fund(SM) Income Fund Stock Fund --------------------- --------------------- ------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004(a) 2005 2004 ---------- -------- --------- --------- -------- -------- Change in Net Assets: Operations: Net investment income/(loss) $ 1,530 $ 1,131 $ 7,124 $ 7,261 $ (142) $ (191) Net realized gains/(losses) on investment and foreign currency transactions (11)+ 861+ 481 1,407 245 1,542 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 1,359 (336) 5,346 878 1,776 (34) -------- -------- --------- --------- -------- -------- Change in net assets resulting from operations 3,422 1,828 12,951 9,546 1,879 1,317 -------- -------- --------- --------- -------- -------- Distributions from net investment income: Institutional Shares (500) (372) (4,198) (4,080) -- -- Class A Shares (620) (430) (110) (9) -- -- Class B Shares (264) (205) (36) (3) -- -- Class C Shares (111) (89) (1,191) (1,584) -- -- Advisor Shares NA NA (1,483) (1,704) NA NA 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) -- NA NA -------- -------- --------- --------- -------- -------- Change in net assets from shareholder distributions (1,994) (1,748) (7,142) (7,380) -- -- -------- -------- --------- --------- -------- -------- Change in net assets from Fund share transactions 4,065 18,270 (11,467) 27,648 (5,570) (7,739) -------- -------- --------- --------- -------- -------- Change in net assets 5,493 18,350 (5,658) 29,814 (3,691) (6,422) Net Assets: Beginning of period 54,749 36,399 171,618 141,804 17,578 24,000 -------- -------- --------- --------- -------- -------- End of period $ 60,242 $ 54,749 $ 165,960 $ 171,618 $ 13,887 $ 17,578 ======== ======== ========= ========= ======== ======== Accumulated Net Investment Income/(Loss) $ 128 $ 93 $ (63) $ (169) $ (142) $ -- ======== ======== ========= ========= ======== ======== International Technology Fund Equity Fund ------------------------ ------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004(b) --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income/(loss) $ (699) $ (632) $ 4,228 $ 1,994 Net realized gains/(losses) on investment and foreign currency transactions 3,738 7,023 23,657 36,267 Net realized gains on futures transactions -- -- 1,695 2,518 Realized gain distributions from underlying funds -- -- -- -- Net change in unrealized appreciation/depreciation on investments, futures and foreign currency 4,482 (11,739) 34,124 16,818 --------- --------- --------- --------- Change in net assets resulting from operations 7,521 (5,348) 63,704 57,597 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares -- -- (6,672) (3,876) Class A Shares -- -- (407) (168) Class B Shares -- -- (10) (2) Class C Shares -- -- (7) (1) Advisor Shares -- -- (186) (39) 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 -- -- (7,282) (4,086) --------- --------- --------- --------- Change in net assets from Fund share transactions (9,010) 16,375 (100,439) 142,755 --------- --------- --------- --------- Change in net assets (1,489) 11,027 (44,017) 196,266 Net Assets: Beginning of period 48,118 37,091 361,559 165,293 --------- --------- --------- --------- End of period $ 46,629 $ 48,118 $ 317,542 $ 361,559 --------- --------- --------- --------- Accumulated Net Investment Income/(Loss) $ (699) $ -- $ 948 $ 4,002 ========= ========= ========= ========= Intermediate Bond Fund Bond Fund ------------------------ ------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income/(loss) $ 9,498 $ 8,735 $ 23,267 $ 24,279 Net realized gains/(losses) on investment and foreign currency transactions 6,278 1,860 4,672 (5,79) Net realized gains on futures transactions -- -- -- -- Realized gain distributions from underlying funds -- -- -- -- Net change in unrealized appreciation/depreciation on investments, futures and foreign currency (2,694) 1,720 (8,592) 2,154 --------- --------- --------- --------- Change in net assets resulting from operations 13,082 12,315 19,347 20,643 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (10,012) (10,360) (25,017) (27,582) Class A Shares (669) (791) (1,343) (1,39) Class B Shares (114) (158) (146) (145) Class C Shares (19) (24) (44) (54) Advisor Shares (22) (21) NA NA Distributions from net realized gains: Institutional Shares (317) -- -- -- Class A Shares (26) -- -- -- Class B Shares (5) -- -- -- Class C Shares (1) -- -- -- Advisor Shares (1) -- NA NA --------- --------- --------- --------- Change in net assets from shareholder distributions (11,186) (11,354) (26,550) (29,176) --------- --------- --------- --------- Change in net assets from Fund share transactions 5,001 (28,184) (133,932) (88,911) --------- --------- --------- --------- Change in net assets 6,897 (27,223) (141,135) (97,444) Net Assets: Beginning of period 306,200 333,423 719,446 816,890 --------- --------- --------- --------- End of period $ 313,097 $ 306,200 $ 578,311 $ 719,446 --------- --------- --------- --------- Accumulated Net Investment Income/(Loss) $ (1,289) $ 49 $ (3,089) $ 194 ========= ========= ========= ========= - ---------- (a) 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. (b) 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 132 & 133 Fifth Third Funds Statements of Changes in Net Assets (Amounts in thousands) - -------------------------------------------------------------------------------- U.S. Government Short Term Bond Fund Bond Fund ----------------------- --------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004(a) 2005 2004 --------- --------- -------- -------- Change in Net Assets: Operations: Net investment income $ 11,175 $ 9,740 $ 1,915 $ 1,809 Net realized gains/(losses) on investment transactions (3,173) 535 519 (181) Net change in unrealized appreciation/depreciation on investments (2,091) (3,782) (744) 516 --------- --------- -------- -------- Change in net assets resulting from operations 5,911 6,493 1,690 2,144 --------- --------- -------- -------- Distributions from net investment income: Institutional Shares (15,030) (14,724) (1,002) (1,106) Class A Shares (726) (898) (725) (726) Class B Shares NA NA NA NA Class C Shares (11) (7) (63) (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 (15,767) (15,629) (1,790) (3,310) --------- --------- -------- -------- Change in net assets from Fund share transactions (162,815) 8,991 (15,817) 8,319 --------- --------- -------- -------- Change in net assets (172,671) (145) (15,917) 7,153 Net Assets: Beginning of period 524,059 524,204 79,221 72,068 --------- --------- -------- -------- End of period $ 351,388 $ 524,059 $ 63,304 $ 79,221 ========= ========= ======== ======== Accumulated Net Investment Income/(Loss) $ (4,520) $ 72 $ 172 $ 47 ========= ========= ======== ======== Intermediate Municipal Bond Fund Municipal Bond Fund --------------------- ----------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 -------- -------- --------- --------- Change in Net Assets: Operations: Net investment income $ 2,203 $ 2,937 $ 8,041 $ 9,990 Net realized gains/(losses) on investment transactions 2,624 2,753 3,539 2,428 Net change in unrealized appreciation/depreciation on investments (2,137) (2,134) (4,799) (2,712) -------- -------- --------- --------- Change in net assets resulting from operations 2,690 3,556 6,781 9,706 -------- -------- --------- --------- Distributions from net investment income: Institutional Shares (2,063) (2,740) (9,070) (9,698) Class A Shares (72) (97) (134) (157) Class B Shares (44) (41) (41) (36) Class C Shares (9) (14) (7) (13) Advisor Shares (14) (15) NA NA Distributions from net realized gains: (2,066) (1,116) (1,780) (2,509) Institutional Shares (89) (34) (30) (41) Class A Shares (59) (21) (9) (11) Class B Shares (16) (8) (2) (5) Class C Shares (17) (7) NA NA Advisor Shares -------- -------- --------- --------- Change in net assets from shareholder distributions (4,449) (4,093) (11,073) (12,470) -------- -------- --------- --------- Change in net assets from Fund share transactions (7,190) (15,427) (47,562) (47,206) -------- -------- --------- --------- Change in net assets (8,949) (15,964) (51,854) (49,970) Net Assets: Beginning of period 62,424 78,388 261,140 311,110 -------- -------- --------- --------- End of period $ 53,475 $ 62,424 $ 209,286 $ 261,140 ======== ======== ========= ========= Accumulated Net Investment Income/(Loss) $ 11 $ 10 $ (1,115) $ 96 ======== ======== ========= ========= Ohio Michigan Municipal Bond Fund Municipal Bond Fund ----------------------- ----------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 --------- --------- --------- --------- Change in Net Assets: Operations: Net investment income $ 5,034 $ 5,793 $ 2,600 $ 3,506 Net realized gains/(losses) on investment transactions 616 1,533 97 (27) Net change in unrealized appreciation/depreciation on investments (1,635) (1,097) (1,219) (1,404) --------- --------- --------- --------- Change in net assets resulting from operations 4,015 6,229 1,478 2,075 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (3,881) (4,697) (2,418) (3,231) Class A Shares (872) (779) (150) (186) Class B Shares (109) (122) (23) (32) Class C Shares (94) (125) (14) (51) Advisor Shares NA NA NA NA Distributions from net realized gains: (857) (354) (120) (167) Institutional Shares (200) (56) (8) (11) Class A Shares (33) (13) (2) (3) Class B Shares (29) (14) (1) (5) Class C Shares NA NA NA NA Advisor Shares --------- --------- --------- --------- Change in net assets from shareholder distributions (6,075) (6,160) (2,736) (3,686) --------- --------- --------- --------- Change in net assets from Fund share transactions (19,764) (25,873) (34,329) (15,216) --------- --------- --------- --------- Change in net assets (21,824) (25,804) (35,587) (16,827) Net Assets: Beginning of period 162,347 188,151 116,023 132,850 --------- --------- --------- --------- End of period $ 140,523 $ 162,347 $ 80,436 $ 116,023 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 103 $ 25 $ 3 $ 8 ========= ========= ========= ========= - -------------- (a) Reflects operations for the period from August 1, 2003 (date of commencement of operations) to July 31, 2004 for Class C Shares. See notes to financial statements 134 & 135 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions (Amounts in thousands) - -------------------------------------------------------------------------------- Small Cap Growth Fund Mid Cap Growth Fund Quality Growth Fund ----------------------- ---------------------- ----------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 --------- --------- -------- --------- --------- --------- Capital Transactions: Institutional Shares Shares issued $ 54,748 $ 50,621 $ 80,245 $ 85,089 $ 151,799 $ 275,956 Dividends reinvested 39,477 35,609 -- -- 694 -- Shares redeemed (104,594) (260,325) (98,890) (110,834) (414,863) (206,29) --------- --------- -------- --------- --------- --------- Total Institutional Shares (10,369) (174,095) (18,645) (25,745) (262,370) 69,660 --------- --------- -------- --------- --------- --------- Class A Shares Shares issued 1,881 15,183 3,564 65,226 6,110 50,886 Dividends reinvested 4,334 2,431 -- -- 321 -- Shares redeemed (9,484) (6,598) (20,717) (54,394) (81,333) (46,916) --------- --------- -------- --------- --------- --------- Total Class A Shares (3,269) 11,016 (17,153) 10,832 (74,902) 3,970 --------- --------- -------- --------- --------- --------- Class B Shares Shares issued 233 557 517 1,329 607 2,939 Dividends reinvested 320 160 -- -- 2 -- Shares redeemed (523) (247) (1,730) (824) (5,664) (3,037) --------- --------- -------- --------- --------- --------- Total Class B Shares 30 470 (1,213) 505 (5,055) (98) --------- --------- -------- --------- --------- --------- Class C Shares Shares issued 34 680 255 625 299 1,416 Dividends reinvested 117 59 -- -- 1 -- Shares redeemed (324) (296) (701) (552) (3,196) (2,437) --------- --------- -------- --------- --------- --------- Total Class C Shares (173) 443 (446) 73 (2,896) (1,021) --------- --------- -------- --------- --------- --------- Advisor Shares Shares issued 123 866 267 778 546 2,414 Dividends reinvested 213 84 -- -- 4 -- Shares redeemed (322) (142) (223) (52) (738) (402) --------- --------- -------- --------- --------- --------- Total Advisor Shares 14 808 44 726 (188) 2,012 --------- --------- -------- --------- --------- --------- Select Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- -------- --------- --------- --------- Total Select Shares NA NA NA NA NA NA --------- --------- -------- --------- --------- --------- Preferred Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- -------- --------- --------- --------- Total Preferred Shares NA NA NA NA NA NA --------- --------- -------- --------- --------- --------- Trust Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- -------- --------- --------- --------- Total Trust Shares NA NA NA NA NA NA --------- --------- -------- --------- --------- --------- Change from capital transactions $ (13,767) $(161,358) $(37,413) $ (13,609) $(345,411) $ 74,523 ========= ========= ======== ========= ========= ========= Large Cap Core Fund Equity Index Fund Balanced Fund Micro Cap Value Fund --------------------- ---------------------- -------------------- -------------------- Year Year Year Year Year Year Year Year ended ended ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31 July 31, July 31, 2005 2004 2005 2004(a) 2005 2004 2005 2004 --------- --------- --------- --------- -------- -------- -------- -------- Capital Transactions: Institutional Shares Shares issued $ 100,722 $ 1,952 $ 52,844 $ 87,452 $ 7,356 $ 8,464 $ 9,452 $ 61,276 Dividends reinvested 2,375 329 2,884 3,480 1,433 1,594 9,657 7,200 Shares redeemed (33,811) (108,664) (102,652) (528,617) (52,487) (99,029) (82,599) (43,053) --------- --------- --------- --------- -------- -------- -------- -------- Total Institutional Shares 69,286 (106,383) (46,924) (437,685) (43,698) (88,971) (63,490) 25,423 --------- --------- --------- --------- -------- -------- -------- -------- Class A Shares Shares issued 2,862 7,505 8,770 89,595 3,084 21,533 1,651 30,015 Dividends reinvested 889 169 1,216 875 1,148 780 2,394 1,709 Shares redeemed (7,801) (6,098) (20,648) (56,436) (23,632) (25,773) (18,230) (15,638) --------- --------- --------- --------- -------- -------- -------- -------- Total Class A Shares (4,050) 1,576 (10,662) 34,034 (19,400) (3,460) (14,185) 16,086 --------- --------- --------- --------- -------- -------- -------- -------- Class B Shares Shares issued 366 257 956 1,357 320 882 261 1,947 Dividends reinvested 23 --^ 36 18 117 35 480 337 Shares redeemed (254) (102) (821) (282) (3,366) (2,545) (744) (843) --------- --------- --------- --------- -------- -------- -------- -------- Total Class B Shares 135 155 171 1,093 (2,929) (1,628) (3) 1,441 --------- --------- --------- --------- -------- -------- -------- -------- Class C Shares Shares issued 36 141 937 1,058 221 736 1,306 4,507 Dividends reinvested 4 --^ 19 10 43 14 371 167 Shares redeemed (23) (16) (889) (947) (1,230) (2,111) (1,504) (812) --------- --------- --------- --------- -------- -------- -------- -------- Total Class C Shares 17 125 67 121 (966) (1,361) 173 3,862 --------- --------- --------- --------- -------- -------- -------- -------- Advisor Shares Shares issued NA NA 788 1,142 31 104 3,832 18,793 Dividends reinvested NA NA 22 8 3 1 2,517 1,930 Shares redeemed NA NA (352) (217) (37) (39) (13,882) (12,142) --------- --------- --------- --------- -------- -------- -------- -------- Total Advisor Shares NA NA 458 933 (3) 66 (7,533) 8,581 --------- --------- --------- --------- -------- -------- -------- -------- Select Shares Shares issued NA NA 5,010 14,858 NA NA NA NA Dividends reinvested NA NA 235 69 NA NA NA NA Shares redeemed NA NA (2,666) (723) NA NA NA NA --------- --------- --------- --------- -------- -------- -------- -------- Total Select Shares NA NA 2,579 14,204 NA NA NA NA --------- --------- --------- --------- -------- -------- -------- -------- Preferred Shares Shares issued NA NA 13,120 187,348 NA NA NA NA Dividends reinvested NA NA 1,695 1,581 NA NA NA NA Shares redeemed NA NA (117,426) (29,488) NA NA NA NA --------- --------- --------- --------- -------- -------- -------- -------- Total Preferred Shares NA NA (102,611) 159,441 NA NA NA NA --------- --------- --------- --------- -------- -------- -------- -------- Trust Shares Shares issued NA NA 23,837 98,438 NA NA NA NA Dividends reinvested NA NA 190 107 NA NA NA NA Shares redeemed NA NA (37,249) (22,880) NA NA NA NA --------- --------- --------- --------- -------- -------- -------- -------- Total Trust Shares NA NA (13,222) 75,665 NA NA NA NA --------- --------- --------- --------- -------- -------- -------- -------- Change from capital transactions $ 65,388 $(104,527) $(170,144) $(152,194) $(66,996) $(95,354) $(85,038) $ 55,393 ========= ========= ========= ========= ======== ======== ======== ======== - ---------- (a) Reflects operations for the period from October 20, 2003 (date of commencement of operations) to July 31, 2004 for Select, Preferred and Trust Shares. ^ Represents fewer than five hundred dollars/shares. See notes to financial statements 136 & 137 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions (Amounts in thousands) - -------------------------------------------------------------------------------- Small Cap Growth Fund Mid Cap Growth Fund Quality Growth Fund Large Cap Core Fund ---------------------- ---------------------- ---------------------- --------------------- Year Year Year Year Year Year Year Year ended ended ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 2005 2004 --------- --------- --------- --------- --------- --------- --------- --------- Share Transactions: Institutional Shares Shares issued 3,582 3,000 5,611 6,373 10,164 17,925 7,053 155 Dividends reinvested 2,753 2,101 -- -- 46 -- 171 25 Shares redeemed (7,034) (15,324) (7,004) (8,371) (27,268) (13,496) (2,437) (8,654) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares (699) (10,223) (1,393) (1,998) (17,058) 4,429 4,787 (8,474) --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 129 908 255 5,213 417 3,405 212 597 Dividends reinvested 310 146 -- -- 22 -- 65 13 Shares redeemed (649) (399) (1,481) (4,318) (5,468) (3,092) (571) (469) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares (210) 655 (1,226) 895 (5,029) 313 (294) 141 --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 16 34 39 103 43 196 26 21 Dividends reinvested 23 10 -- -- --^ -- 2 --^ Shares redeemed (36) (15) (129) (63) (395) (203) (18) (8) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares 3 29 (90) 40 (352) (7) 10 13 --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 2 40 20 50 21 97 3 11 Dividends reinvested 8 4 -- -- --^ -- --^ --^ Shares redeemed (22) (18) (52) (44) (228) (169) (2) (1) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares (12) 26 (32) 6 (207) (72) 1 10 --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 9 50 18 60 36 160 NA NA Dividends reinvested 15 5 -- -- --^ -- NA NA Shares redeemed (22) (8) (16) (4) (50) (27) NA NA --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares 2 47 2 56 (14) 133 NA NA --------- --------- --------- --------- --------- --------- --------- --------- Select 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 Select Shares NA NA NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Preferred 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 Preferred Shares NA NA NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Trust 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 Trust Shares NA NA NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Change from share transactions (916) (9,466) (2,739) (1,001) (22,660) 4,796 4,504 (8,310) ========= ========= ========= ========= ========= ========= ========= ========= Equity Index Fund Balanced Fund Micro Cap Value Fund ---------------------- ---------------------- ---------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004(a) 2005 2004 2005 2004 --------- --------- --------- --------- --------- --------- Share Transactions: Institutional Shares Shares issued 2,347 4,320 589 705 893 6,449 Dividends reinvested 128 170 114 132 915 770 Shares redeemed (4,521) (26,097) (4,211) (8,202) (7,924) (4,402) --------- --------- --------- --------- --------- --------- Total Institutional Shares (2,046) (21,607) (3,508) (7,365) (6,116) 2,817 --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 402 4,550 249 1,826 164 3,254 Dividends reinvested 54 42 92 65 231 186 Shares redeemed (934) (2,879) (1,901) (2,145) (1,771) (1,621) --------- --------- --------- --------- --------- --------- Total Class A Shares (478) 1,713 (1,560) (254) (1,376) 1,819 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 43 66 26 75 27 215 Dividends reinvested 2 1 9 3 47 37 Shares redeemed (37) (14) (275) (214) (75) (89) --------- --------- --------- --------- --------- --------- Total Class B Shares 8 53 (240) (136) (1) 163 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 43 51 18 64 128 485 Dividends reinvested 1 --^ 4 1 37 18 Shares redeemed (40) (47) (102) (177) (148) (84) --------- --------- --------- --------- --------- --------- Total Class C Shares 4 4 (80) (112) 17 419 --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 36 55 3 9 390 2,019 Dividends reinvested 1 --^ --^ --^ 245 211 Shares redeemed (16) (10) (3) (3) (1,385) (1,262) --------- --------- --------- --------- --------- --------- Total Advisor Shares 21 45 --^ 6 (750) 968 --------- --------- --------- --------- --------- --------- Select Shares Shares issued 224 713 NA NA NA NA Dividends reinvested 10 3 NA NA NA NA Shares redeemed (119) (34) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Select Shares 115 682 NA NA NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued 584 9,212 NA NA NA NA Dividends reinvested 76 75 NA NA NA NA Shares redeemed (5,222) (1,393) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares (4,562) 7,894 NA NA NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued 1,052 4,932 NA NA NA NA Dividends reinvested 8 5 NA NA NA NA Shares redeemed (1,651) (1,093) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares (591) 3,844 NA NA NA NA --------- --------- --------- --------- --------- --------- Change from share transactions (7,529) (7,372) (5,388) (7,861) (8,226) 6,186 ========= ========= ========= ========= ========= ========= - -------------- (a) Reflects operations for the period from October 20, 2003 (date of commencement of operations) to July 31, 2004 for Select, Preferred and Trust Shares. ^ Represents fewer than five hundred dollars/shares. See notes to financial statements 138 & 139 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions (Amounts in thousands) - -------------------------------------------------------------------------------- Disciplined Large Cap LifeModel Small Cap Value Fund Multi Cap Value Fund Value Fund Aggressive Fund(SM) -------------------- -------------------- ---------------------- -------------------- Year Year Year Year Year Year Year Year ended ended ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 2005 2004 -------- -------- -------- -------- --------- --------- -------- -------- Capital Transactions: Institutional Shares Shares issued $ 55,220 $ 56,630 $ 66,947 $ 84,532 $ 82,591 $ 300,125 $ 24,902 $ 32,676 Dividends reinvested 10,515 3,940 15,107 751 18,198 13,643 1,014 881 Shares redeemed (33,029) (36,181) (82,530) (66,562) (227,228) (74,461) (16,721) (16,370) -------- -------- -------- -------- --------- --------- -------- -------- Total Institutional Shares 32,706 24,389 (476) 18,721 (126,439) 239,307 9,195 17,187 -------- -------- -------- -------- --------- --------- -------- -------- Class A Shares Shares issued 1,102 2,347 9,858 15,347 7,203 17,304 13,179 31,283 Dividends reinvested 184 29 1,951 102 802 725 607 522 Shares redeemed (1,186) (331) (10,763) (5,995) (7,514) (12,995) (10,978) (4,416) -------- -------- -------- -------- --------- --------- -------- -------- Total Class A Shares 100 2,045 1,046 9,454 491 5,034 2,808 27,389 -------- -------- -------- -------- --------- --------- -------- -------- Class B Shares Shares issued 599 428 2,803 3,955 1,398 1,325 4,444 8,856 Dividends reinvested 55 8 1,133 51 139 127 148 149 Shares redeemed (137) (41) (3,229) (1,772) (1,172) (562) (2,442) (702) -------- -------- -------- -------- --------- --------- -------- -------- Total Class B Shares 517 395 707 2,234 365 890 2,150 8,303 -------- -------- -------- -------- --------- --------- -------- -------- Class C Shares Shares issued 474 702 2,020 1,961 708 1,013 761 2,038 Dividends reinvested 44 17 213 7 56 43 20 29 Shares redeemed (256) (182) (2,078) (537) (508) (274) (795) (707) -------- -------- -------- -------- --------- --------- -------- -------- Total Class C Shares 262 537 155 1,431 256 782 (14) 1,360 -------- -------- -------- -------- --------- --------- -------- -------- Advisor Shares Shares issued 344 1,481 1,914 7,464 NA NA NA NA Dividends reinvested 129 21 2,263 128 NA NA NA NA Shares redeemed (331) (120) (7,342) (11,525) NA NA NA NA -------- -------- -------- -------- --------- --------- -------- -------- Total Advisor Shares 142 1,382 (3,165) (3,933) NA NA NA NA -------- -------- -------- -------- --------- --------- -------- -------- Change from capital transactions $ 33,727 $ 28,748 $ (1,733) $ 27,907 $(125,327) $ 246,013 $ 14,139 $ 54,239 ======== ======== ======== ======== ========= ========= ======== ======== Share Transactions: Institutional Shares Shares issued 2,646 2,856 2,739 3,830 5,849 23,119 1,868 2,568 Dividends reinvested 529 206 634 35 1,295 1,091 75 70 Shares redeemed (1,594) (1,846) (3,414) (3,042) (15,801) (5,812) (1,234) (1,324) -------- -------- -------- -------- --------- --------- -------- -------- Total Institutional Shares 1,581 1,216 (41) 823 (8,657) 18,398 709 1,314 -------- -------- -------- -------- --------- --------- -------- -------- Class A Shares Shares issued 54 117 415 704 509 1,340 1,002 2,486 Dividends reinvested 9 2 83 5 57 58 45 42 Shares redeemed (57) (17) (450) (269) (528) (979) (824) (347) -------- -------- -------- -------- --------- --------- -------- -------- Total Class A Shares 6 102 48 440 38 419 223 2,181 -------- -------- -------- -------- --------- --------- -------- -------- Class B Shares Shares issued 30 21 121 181 97 100 342 710 Dividends reinvested 3 --^ 49 2 10 10 11 12 Shares redeemed (7) (2) (140) (82) (82) (43) (187) (56) -------- -------- -------- -------- --------- --------- -------- -------- Total Class B Shares 26 19 30 101 25 67 166 666 -------- -------- -------- -------- --------- --------- -------- -------- Class C Shares Shares issued 24 35 86 90 50 80 59 164 Dividends reinvested 2 1 9 --^ 4 3 1 2 Shares redeemed (12) (9) (88) (25) (36) (21) (62) (57) -------- -------- -------- -------- --------- --------- -------- -------- Total Class C Shares 14 27 7 65 18 62 (2) 109 -------- -------- -------- -------- --------- --------- -------- -------- Advisor Shares Shares issued 16 74 81 347 NA NA NA NA Dividends reinvested 7 1 96 6 NA NA NA NA Shares redeemed (16) (6) (308) (527) NA NA NA NA -------- -------- -------- -------- --------- --------- -------- -------- Total Advisor Shares 7 69 (131) (174) NA NA NA NA -------- -------- -------- -------- --------- --------- -------- -------- Change from share transactions 1,634 1,433 (87) 1,255 (8,576) 18,946 1,096 4,270 ======== ======== ======== ======== ========= ========= ======== ======== LifeModel Moderately LifeModel LifeModel Moderately Aggressive Fund(SM) Moderate Fund(SM) Conservative Fund(SM) --------------------- --------------------- --------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 -------- --------- -------- --------- -------- -------- Capital Transactions: Institutional Shares Shares issued $ 35,699 $ 42,003 $ 62,059 $ 293,587 $ 9,260 $ 16,845 Dividends reinvested 2,008 1,625 7,796 3,255 1,221 1,496 Shares redeemed (20,044) (27,861) (70,750) (51,038) (12,191) (21,740) -------- --------- -------- --------- -------- -------- Total Institutional Shares 17,663 15,767 (895) 245,804 (1,710) (3,399) -------- --------- -------- --------- -------- -------- Class A Shares Shares issued 37,035 72,485 31,945 83,406 8,736 28,373 Dividends reinvested 2,109 1,637 2,162 1,608 1,130 1,236 Shares redeemed (21,154) (15,784) (34,525) (17,065) (11,563) (8,496) -------- --------- -------- --------- -------- -------- Total Class A Shares 17,990 58,338 (418) 67,949 (1,697) 21,113 -------- --------- -------- --------- -------- -------- Class B Shares Shares issued 11,955 28,608 9,857 24,584 4,612 13,543 Dividends reinvested 518 414 543 485 462 459 Shares redeemed (7,064) (2,663) (6,313) (3,637) (4,725) (2,100) -------- --------- -------- --------- -------- -------- Total Class B Shares 5,409 26,359 4,087 21,432 349 11,902 -------- --------- -------- --------- -------- -------- Class C Shares Shares issued 3,453 7,547 3,077 7,079 1,608 3,424 Dividends reinvested 98 67 93 83 72 62 Shares redeemed (3,489) (982) (3,300) (1,094) (1,439) (925) -------- --------- -------- --------- -------- -------- Total Class C Shares 62 6,632 (130) 6,068 241 2,561 -------- --------- -------- --------- -------- -------- Advisor Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA -------- --------- -------- --------- -------- -------- Total Advisor Shares NA NA NA NA NA NA -------- --------- -------- --------- -------- -------- Change from capital transactions $ 41,124 $ 107,096 $ 2,644 $ 341,253 $ (2,817) $ 32,177 ======== ========= ======== ========= ======== ======== Share Transactions: Institutional Shares Shares issued 2,705 3,306 5,175 24,802 824 1,512 Dividends reinvested 152 130 647 279 108 136 Shares redeemed (1,513) (2,252) (5,880) (4,399) (1,080) (1,976) -------- --------- -------- --------- -------- -------- Total Institutional Shares 1,344 1,184 (58) 20,682 (148) (328) -------- --------- -------- --------- -------- -------- Class A Shares Shares issued 2,859 5,785 2,680 7,162 782 2,555 Dividends reinvested 160 131 179 139 100 112 Shares redeemed (1,610) (1,234) (2,883) (1,450) (1,038) (765) -------- --------- -------- --------- -------- -------- Total Class A Shares 1,409 4,682 (24) 5,851 (156) 1,902 -------- --------- -------- --------- -------- -------- Class B Shares Shares issued 925 2,279 832 2,123 417 1,227 Dividends reinvested 39 33 45 42 41 42 Shares redeemed (542) (212) (529) (312) (424) (190) -------- --------- -------- --------- -------- -------- Total Class B Shares 422 2,100 348 1,853 34 1,079 -------- --------- -------- --------- -------- -------- Class C Shares Shares issued 266 601 258 612 144 310 Dividends reinvested 7 5 8 7 6 6 Shares redeemed (268) (78) (278) (94) (129) (84) -------- --------- -------- --------- -------- -------- Total Class C Shares 5 528 (12) 525 21 232 -------- --------- -------- --------- -------- -------- Advisor Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA -------- --------- -------- --------- -------- -------- Total Advisor Shares NA NA NA NA NA NA -------- --------- -------- --------- -------- -------- Change from share transactions 3,180 8,494 254 28,911 (249) 2,885 ======== ========= ======== ========= ======== ======== - ----------- ^ Represents fewer than five hundred dollars/shares. See notes to financial statements 140 & 141 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions (Amounts in thousands) - -------------------------------------------------------------------------------- LifeModel Select Conservative Fund(SM) Strategic Income Fund Stock Fund ---------------------- ---------------------- ---------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004(a) 2005 2004 --------- --------- --------- --------- --------- --------- Capital Transactions: Institutional Shares Shares issued $ 12,957 $ 6,828 $ 24,974 $ 48,821 $ 503 $ 1,352 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 610 544 649 645 -- -- Shares redeemed (5,952) (9,370) (21,877) (27,289) (2,518) (9,672) --------- --------- --------- --------- --------- --------- Total Institutional Shares 7,615 (1,998) 3,746 22,177 (2,015) (8,320) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 9,897 17,121 3,984 1,045 865 3,212 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 764 653 76 4 -- -- Shares redeemed (11,653) (6,620) (652) (104) (4,122) (2,524) --------- --------- --------- --------- --------- --------- Total Class A Shares (992) 11,154 3,408 945 (3,257) 688 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 2,138 7,782 1,573 387 25 147 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 351 343 18 1 -- -- Shares redeemed (3,641) (3,428) (96) (4) (200) (71) --------- --------- --------- --------- --------- --------- Total Class B Shares (1,152) 4,697 1,495 384 (175) 76 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 1,893 6,320 2,493 21,878 15 20 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 152 145 957 1,233 -- -- Shares redeemed (3,451) (2,048) (14,830) (22,066) (138) (203) --------- --------- --------- --------- --------- --------- Total Class C Shares (1,406) 4,417 (11,380) 1,045 (123) (183) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued NA NA 4,501 19,845 NA NA Shares issued in merger NA NA -- -- NA NA Dividends reinvested NA NA 1,335 1,446 NA NA Shares redeemed NA NA (14,572) (18,194) NA NA --------- --------- --------- --------- --------- --------- Total Advisor Shares NA NA (8,736) 3,097 NA NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ 4,065 $ 18,270 $ (11,467) $ 27,648 $ (5,570) $ (7,739) ========= ========= ========= ========= ========= ========= Share Transactions: Institutional Shares Shares issued 1,199 627 2,176 4,351 25 69 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 56 51 57 58 -- -- Shares redeemed (551) (865) (1,908) (2,449) (125) (501) --------- --------- --------- --------- --------- --------- Total Institutional Shares 704 (187) 325 1,960 (100) (432) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 925 1,581 348 95 47 167 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 71 61 7 --^ -- -- Shares redeemed (1,083) (610) (57) (9) (214) (129) --------- --------- --------- --------- --------- --------- Total Class A Shares (87) 1,032 298 86 (167) 38 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 199 723 137 35 1 8 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 33 32 2 --^ -- -- Shares redeemed (339) (318) (8) --^ (10) (4) --------- --------- --------- --------- --------- --------- Total Class B Shares (107) 437 131 35 (9) 4 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 177 586 220 1,953 1 1 Shares issued in merger -- -- -- -- -- -- Dividends reinvested 14 13 84 111 -- -- Shares redeemed (322) (190) (1,308) (2,003) (8) (11) --------- --------- --------- --------- --------- --------- Total Class C Shares (131) 409 (1,004) 61 (7) (10) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued NA NA 394 1,756 NA NA Shares issued in merger NA NA -- -- NA NA Dividends reinvested NA NA 117 129 NA NA Shares redeemed NA NA (1,279) (1,631) NA NA --------- --------- --------- --------- --------- --------- Total Advisor Shares NA NA (768) 254 NA NA --------- --------- --------- --------- --------- --------- Change from share transactions 379 1,691 (1,018) 2,396 (283) (400) ========= ========= ========= ========= ========= ========= International Intermediate Technology Fund Equity Fund Bond Fund Bond Fund --------------------- ---------------------- --------------------- ---------------------- Year Year Year Year Year Year Year Year ended ended ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004(b) 2005 2004 2005 2004 --------- --------- --------- --------- -------- --------- --------- --------- Capital Transactions: Institutional Shares Shares issued $ 9,259 $ 25,660 $ 82,064 $ 104,241 $ 93,508 84,603 $ 78,453 $ 207,569 Shares issued in merger -- -- -- 172,761 -- -- -- -- Dividends reinvested -- -- 2,185 2,209 3,033 2,983 4,315 7,249 Shares redeemed (14,038) (13,544) (177,553) (163,646) (83,909) (114,066) (208,267) (302,980) --------- --------- --------- --------- -------- --------- --------- --------- Total Institutional Shares (4,779) 12,116 (93,304) 115,565 12,632 (26,480) (125,499) (88,162) --------- --------- --------- --------- -------- --------- --------- --------- Class A Shares Shares issued 1,208 7,293 4,426 16,084 2,296 10,586 2,719 16,139 Shares issued in merger -- -- -- 5,153 -- -- -- -- Dividends reinvested -- -- 384 165 617 684 1,060 1,110 Shares redeemed (3,614) (4,677) (10,704) (6,195) (9,750) (9,430) (11,082) (15,769) --------- --------- --------- --------- -------- --------- --------- --------- Total Class A Shares (2,406) 2,616 (5,894) 15,207 (6,837) 1,840 (7,303) 1,480 --------- --------- --------- --------- -------- --------- --------- --------- Class B Shares Shares issued 121 940 503 379 253 426 -- 147 Shares issued in merger -- -- -- 70 -- -- -- -- Dividends reinvested -- -- 10 2 103 138 128 128 Shares redeemed (573) (549) (154) (65) (988) (3,535) (749) (1,819) --------- --------- --------- --------- -------- --------- --------- --------- Total Class B Shares (452) 391 359 386 (632) (2,971) (621) (1,544) --------- --------- --------- --------- -------- --------- --------- --------- Class C Shares Shares issued 81 1,882 519 374 79 87 193 543 Shares issued in merger -- -- -- 379 -- -- -- -- Dividends reinvested -- -- 6 1 19 23 36 43 Shares redeemed (1,409) (886) (214) (557) (223) (596) (738) (1,271) --------- --------- --------- --------- -------- --------- --------- --------- Total Class C Shares (1,328) 996 311 197 (125) (486) (509) (685) --------- --------- --------- --------- -------- --------- --------- --------- Advisor Shares Shares issued 152 402 605 765 81 134 NA NA Shares issued in merger -- -- -- 15,823 -- -- NA NA Dividends reinvested -- -- 175 37 18 15 NA NA Shares redeemed (197) (146) (2,691) (5,225) (136) (236) NA NA --------- --------- --------- --------- -------- --------- --------- --------- Total Advisor Shares (45) 256 (1,911) 11,400 (37) (87) NA NA --------- --------- --------- --------- -------- --------- --------- --------- Change from capital transactions $ (9,010) $ 16,375 $(100,439) $ 142,755 $ 5,001 $ (28,184) $(133,932) $ (88,911) ========= ========= ========= ========= ======== ========= ========= ========= Share Transactions: Institutional Shares Shares issued 1,021 2,375 8,108 11,779 9,257 8,270 7,923 20,481 Shares issued in merger -- -- -- 19,982 -- -- -- -- Dividends reinvested -- -- 211 252 299 295 434 718 Shares redeemed (1,549) (1,326) (17,002) (17,582) (8,263) (11,327) (20,921) (30,042) --------- --------- --------- --------- -------- --------- --------- --------- Total Institutional Shares (528) 1,049 (8,683) 14,431 1,293 (2,762) (12,564) (8,843) --------- --------- --------- --------- -------- --------- --------- --------- Class A Shares Shares issued 135 694 432 1,835 226 1,051 271 1,594 Shares issued in merger -- -- -- 595 -- -- -- -- Dividends reinvested -- -- 37 19 61 68 107 110 Shares redeemed (403) (449) (1,036) (687) (962) (934) (1,112) (1,561) --------- --------- --------- --------- -------- --------- --------- --------- Total Class A Shares (268) 245 (567) 1,762 (675) 185 (734) 143 --------- --------- --------- --------- -------- --------- --------- --------- Class B Shares Shares issued 14 93 48 41 25 42 -- 15 Shares issued in merger -- -- -- 8 -- -- -- -- Dividends reinvested -- -- 1 -- ^ 10 14 13 13 Shares redeemed (68) (54) (15) (7) (97) (351) (75) (182) --------- --------- --------- --------- -------- --------- --------- --------- Total Class B Shares (54) 39 34 42 (62) (295) (62) (154) --------- --------- --------- --------- -------- --------- --------- --------- Class C Shares Shares issued 9 181 51 45 8 9 19 54 Shares issued in merger -- -- -- 45 -- -- -- -- Dividends reinvested -- -- 1 -- ^ 2 2 4 4 Shares redeemed (164) (92) (21) (69) (23) (59) (74) (126) --------- --------- --------- --------- -------- --------- --------- --------- Total Class C Shares (155) 89 31 21 (13) (48) (51) (68) --------- --------- --------- --------- -------- --------- --------- --------- Advisor Shares Shares issued 17 39 58 81 8 13 NA NA Shares issued in merger -- -- -- 1,826 -- -- NA NA Dividends reinvested -- -- 17 4 2 2 NA NA Shares redeemed (22) (15) (260) (583) (13) (24) NA NA --------- --------- --------- --------- -------- --------- --------- --------- Total Advisor Shares (5) 24 (185) 1,328 (3) (9) NA NA --------- --------- --------- --------- -------- --------- --------- --------- Change from share transactions (1,010) 1,446 (9,370) 17,584 540 (2,929) (13,411) (8,922) ========= ========= ========= ========= ======== ========= ========= ========= - ------------------- (a) 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. (b) Reflects operations for the period from November 10, 2003 (date of commencement of operations) to July 31, 2004 for Advisor Shares. ^ Represents fewer than five hundred dollars/shares. See notes to financial statements 142 & 143 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 Municipal Bond Fund ---------------------- ---------------------- --------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004(a) 2005 2004 2005 2004 --------- --------- --------- --------- --------- --------- Capital Transactions: Institutional Shares Shares issued $ 113,038 $ 232,770 $ 7,325 $ 12,659 $ 8,466 $ 7,893 Dividends reinvested 3,007 4,831 499 1,326 2,120 1,219 Shares redeemed (268,049) (223,970) (18,374) (20,172) (16,807) (25,329) --------- --------- --------- --------- --------- --------- Total Institutional Shares (152,004) 13,631 (10,550) (6,187) (6,221) (16,217) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 3,235 15,629 1,411 29,119 55 7,061 Dividends reinvested 620 756 709 1,236 96 98 Shares redeemed (14,513) (21,560) (5,978) (10,195) (907) (6,586) --------- --------- --------- --------- --------- --------- Total Class A Shares (10,658) (5,175) (3,858) 20,160 (756) 573 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued NA NA NA NA 175 397 Dividends reinvested NA NA NA NA 83 45 Shares redeemed NA NA NA NA (258) (102) --------- --------- --------- --------- --------- --------- Total Class B Shares NA NA NA NA --^ 340 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 206 757 205 306 51 135 Dividends reinvested 9 6 51 190 15 17 Shares redeemed (368) (228) (1,665) (6,150) (238) (332) --------- --------- --------- --------- --------- --------- Total Class C Shares (153) 535 (1,409) (5,654) (172) (180) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued NA NA NA NA 10 87 Dividends reinvested NA NA NA NA 19 15 Shares redeemed NA NA NA NA (70) (45) --------- --------- --------- --------- --------- --------- Total Advisor Shares NA NA NA NA (41) 57 --------- --------- --------- --------- --------- --------- Change from capital transactions $(162,815) $ 8,991 $ (15,817) $ 8,319 $ (7,190) $ (15,427) ========= ========= ========= ========= ========= ========= Share Transactions: Institutional Shares Shares issued 11,863 24,026 721 1,242 834 745 Dividends reinvested 317 498 49 130 209 115 Shares redeemed (28,302) (23,028) (1,804) (1,964) (1,642) (2,400) --------- --------- --------- --------- --------- --------- Total Institutional Shares (16,122) 1,496 (1,034) (592) (599) (1,540) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 341 1,611 139 2,837 5 668 Dividends reinvested 65 78 70 121 9 9 Shares redeemed (1,534) (2,221) (588) (992) (88) (622) --------- --------- --------- --------- --------- --------- Total Class A Shares (1,128) (532) (379) 1,966 (74) 55 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued NA NA NA NA 17 38 Dividends reinvested NA NA NA NA 8 4 Shares redeemed NA NA NA NA (25) (10) --------- --------- --------- --------- --------- --------- Total Class B Shares NA NA NA NA --^ 32 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 22 78 20 30 5 13 Dividends reinvested 1 1 5 19 1 2 Shares redeemed (39) (24) (164) (605) (23) (32) --------- --------- --------- --------- --------- --------- Total Class C Shares (16) 55 (139) (556) (17) (17) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued NA NA NA NA 1 9 Dividends reinvested NA NA NA NA 2 1 Shares redeemed NA NA NA NA (7) (4) --------- --------- --------- --------- --------- --------- Total Advisor Shares NA NA NA NA (4) 6 --------- --------- --------- --------- --------- --------- Change from share transactions (17,266) 1,019 (1,552) 818 (694) (1,464) ========= ========= ========= ========= ========= ========= Intermediate Ohio Michigan Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund --------------------- --------------------- --------------------- Year Year Year Year Year Year ended ended ended ended ended ended July 31, July 31, July 31, July 31, July 31, July 31, 2005 2004 2005 2004 2005 2004 --------- --------- --------- --------- --------- --------- Capital Transactions: Institutional Shares Shares issued $ 6,896 $ 18,353 $ 2,429 $ 5,948 $ 5,241 $ 25,275 Dividends reinvested 1,920 2,688 910 416 259 446 Shares redeemed (54,557) (68,066) (23,611) (31,734) (35,599) (37,741) --------- --------- --------- --------- --------- --------- Total Institutional Shares (45,741) (47,025) (20,272) (25,370) (30,099) (12,020) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 99 6,508 4,818 16,923 19 1,995 Dividends reinvested 119 162 408 473 114 146 Shares redeemed (1,571) (6,460) (3,892) (15,435) (2,641) (2,774) --------- --------- --------- --------- --------- --------- Total Class A Shares (1,353) 210 1,334 1,961 (2,508) (633) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued -- 376 109 853 34 350 Dividends reinvested 40 38 117 107 14 24 Shares redeemed (302) (196) (597) (1,340) (430) (792) --------- --------- --------- --------- --------- --------- Total Class B Shares (262) 218 (371) (380) (382) (418) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 10 83 249 82 37 254 Dividends reinvested 9 17 108 121 14 39 Shares redeemed (225) (709) (812) (2,287) (1,391) (2,438) --------- --------- --------- --------- --------- --------- Total Class C Shares (206) (609) (455) (2,084) (1,340) (2,145) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Advisor Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (47,562) $ (47,206) $ (19,764) $ (25,873) $ (34,329) $ (15,216) ========= ========= ========= ========= ========= ========= Share Transactions: Institutional Shares Shares issued 660 1,706 234 564 516 2,454 Dividends reinvested 182 251 88 39 26 43 Shares redeemed (5,195) (6,381) (2,278) (3,016) (3,508) (3,667) --------- --------- --------- --------- --------- --------- Total Institutional Shares (4,353) (4,424) (1,956) (2,413) (2,966) (1,170) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 10 608 462 1,607 2 196 Dividends reinvested 11 15 39 45 11 14 Shares redeemed (149) (603) (377) (1,480) (261) (269) --------- --------- --------- --------- --------- --------- Total Class A Shares (128) 20 124 172 (248) (59) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued -- 35 11 83 3 34 Dividends reinvested 4 4 12 10 1 2 Shares redeemed (29) (18) (59) (130) (42) (76) --------- --------- --------- --------- --------- --------- Total Class B Shares (25) 21 (36) (37) (38) (40) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 1 8 24 8 4 25 Dividends reinvested 1 2 10 12 1 4 Shares redeemed (22) (67) (77) (220) (137) (237) --------- --------- --------- --------- --------- --------- Total Class C Shares (20) (57) (43) (200) (132) (208) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Advisor Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Change from share transactions (4,526) (4,440) (1,911) (2,478) (3,384) $ (1,477) ========= ========= ========= ========= ========= ========= - ----------- (a) Reflects operations for the period from August 1, 2003 (date of commencement of operations) to July 31, 2004 for Class C Shares. See notes to financial statements 144 & 145 Fifth Third Funds Notes to Financial Statements July 31, 2005 - -------------------------------------------------------------------------------- (1) Organization The Fifth Third Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company established as a Massachusetts business trust. At July 31, 2005, the Trust consisted of thirty-five separate investment portfolios, one of which is not currently offered and is not included in these financial statements. 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 FundSM ("LifeModel Aggressive Fund(SM)") Fifth Third LifeModel Moderately Aggressive FundSM ("LifeModel Moderately Aggressive Fund(SM)") Fifth Third LifeModel Moderate FundSM ("LifeModel Moderate FundSM") Fifth Third LifeModel Moderately Conservative FundSM ("LifeModel Moderately Conservative Fund(SM)") Fifth Third LifeModel Conservative FundSM ("LifeModel Conservative Fund(SM)") Fifth Third Strategic Income Fund ("Strategic Income Fund") Fifth Third Select Stock Fund ("Select Stock 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 146 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- 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. 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. 147 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- (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 of America.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 price on that exchange. 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--For financial reporting purposes, securities transactions are accounted for on the trade date. At all other times, the Trust's securities transactions are booked 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. 148 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- 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 Select Stock Fund, the Intermediate Municipal Bond Fund and the Ohio Municipal Bond 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 $1,231,985 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 149 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- 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 year ended July 31, 2005, the Equity Index Fund and Short Term Bond Fund realized $65,877,286 of net gain and $322,659 of net loss on $133,786,020 and $47,172,962 of in-kind redemptions, respectively. Other--Expenses directly attributable to a Fund are charged to the Fund, while expenses which are attributable to more than one series of the Trust are allocated among the respective series based upon relative net assets or another appropriate basis. Income, expenses, and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets, except that each class separately bears expenses related specifically to that class, such as distribution fees. Distributions to Shareholders--Dividends, if any, from net investment income are declared daily and paid monthly for the Strategic Income Fund. Dividends, if any, from net investment income are declared and paid monthly for the Bond Fund, Intermediate Bond Fund, Short Term Bond Fund, U.S. Government Bond Fund, Municipal Bond Fund, Intermediate Municipal Bond Fund, Ohio Municipal Bond Fund and Michigan Municipal Bond Fund. Dividends, if any, from net investment income are declared and paid quarterly for the Mid Cap Growth Fund, Quality Growth Fund, Large Cap Core Fund, Equity Index Fund, Balanced Fund, Micro Cap Value Fund, Multi Cap Value Fund, Disciplined Large Cap Value Fund, LifeModel Aggressive Fund(SM), LifeModel Moderately Aggressive Fund(SM), LifeModel Moderate Fund(SM), LifeModel Moderately Conservative Fund(SM), LifeModel Conservative Fund(SM), Select Stock Fund and Technology Fund. Dividends, if any, from net investment income are declared and paid annually for the Small Cap Growth Fund, Small Cap Value Fund and International Equity Fund. Distributable net realized gains, if any, are declared and distributed at least annually. Dividends to shareholders are recorded on the ex-dividend date. Dividends from net investment income and from net realized capital gains are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.These differences are primarily due to differing treatments for mortgage-backed securities, amortization and/or accretion of securities, foreign currency transactions, expiring capital loss carryforwards and deferrals of certain losses. These "book/tax" differences are either considered temporary or permanent in nature.To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassifications.To the extent they exceed net investment income and net realized gains for tax purposes, they are reported as distribution of capital. Federal Taxes--It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. 150 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- (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 received $1,801,141 in fees from Fifth Third during the year ended July 31, 2005, computed as a percentage (up to 0.0145%) 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 July 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. $ 101 $ -- $ 63 $ 254 $ 266 151 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- 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. $ 150 $ 105 $ 80 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 July 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. $ 3,856 $ 943 $ 1,813 $ 2,771 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. $ 964 $ 647 $ 334 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 year ended July 31, 2005, the Distributor received $3,423,771 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 $2,712,224 to affiliated broker-dealers of the Funds. 152 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- 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 of 0.005% from BISYS Ohio computed as a percentage of the average daily net assets of each Fund. Fifth Third received $746,932 in fees for its services during the year ended July 31, 2005. Effective November 1, 2004, transfer agent fees were changed and 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. Pursuant to a separate agreement with Fifth Third, BISYS Ohio performs sub-accounting services on behalf of the Funds, for which it received $2,774,827 in fees from Fifth Third during the year ended July 31, 2005, computed as a percentage (up to 0.015%) 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. 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. 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. 153 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- (5) Investment Transactions Purchases and sales of investments, excluding short-term securities for the year ended July 31, 2005, were as follows (Amounts in thousands): Purchases Sales ---------- ---------- Small Cap Growth Fund $ 154,861 $ 217,394 Mid Cap Growth Fund 211,549 246,404 Quality Growth Fund 707,432 1,051,193 Large Cap Core Fund 183,181 118,062 Equity Index Fund 17,178 104,748 Balanced Fund 225,574 289,525 Micro Cap Value Fund 25,930 109,011 Small Cap Value Fund 159,464 135,312 Multi Cap Value Fund 86,872 80,389 Disciplined Large Cap Value Fund 195,943 327,674 LifeModel Aggressive Fund(SM) 61,502 42,049 LifeModel Moderately Aggressive Fund(SM) 139,063 90,521 LifeModel Moderate Fund(SM) 212,565 198,531 LifeModel Moderately Conservative Fund(SM) 39,931 42,651 LifeModel Conservative Fund(SM) 31,801 27,096 Strategic Income Fund 26,791 41,633 Select Stock Fund 4,265 9,867 Technology Fund 171,721 180,931 International Equity Fund 75,458 150,744 Bond Fund 1,030,489 1,033,477 Intermediate Bond Fund 594,615 682,905 Short Term Bond Fund 291,891 431,534 U.S. Government Bond Fund 103,719 108,916 Municipal Bond Fund 45,309 56,555 Intermediate Municipal Bond Fund 136,676 188,635 Ohio Municipal Bond Fund 27,816 44,873 Michigan Municipal Bond Fund 9,968 43,242 154 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- (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.There were no borrowings against the line of credit at the end of the year. (7) Federal Tax Information The Funds designate the following amounts as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals.The amounts designated may not agree with the long term capital gains in the tax character of distribution table due to utilization of earnings and profits distributed to shareholders on redemption of shares. (Amounts in thousands): Amount ------- Small Cap Growth Fund $53,383 Large Cap Core Fund 2,775 Micro Cap Value Fund 23,671 Small Cap Value Fund 4,642 Multi Cap Value Fund 22,427 Disciplined Large Cap Value Fund 22,079 LifeModel Aggressive Fund(SM) 1,197 LifeModel Moderately Aggressive Fund(SM) 1,902 LifeModel Moderate Fund(SM) 2,033 LifeModel Moderately Conservative Fund(SM) 798 LifeModel Conservative Fund(SM) 329 Strategic Income Fund 124 Bond Fund 402 Municipal Bond Fund 2,593 Intermediate Municipal Bond Fund 2,257 Ohio Municipal Bond Fund 1,173 Michigan Municipal Bond Fund 131 The tax character of distributions paid during the fiscal year ended July 31, 2005 was as follows (Amounts in thousands): Distributions paid from ----------------------- Net Long Term Tax Total Ordinary Capital Exempt Distributions Income Gains Income Paid --------- ---------- -------- --------------- Small Cap Growth Fund -- $ 44,826 -- $44,826 Quality Growth Fund $ 2,218 -- -- 2,218 Large Cap Core Fund 1,286 2,775 -- 4,061 Equity Index Fund 8,380 -- -- 8,380 Balanced Fund 2,942 -- -- 2,942 Micro Cap Value Fund 3,376 13,113 -- 16,489 Small Cap Value Fund 7,395 3,613 -- 11,008 Multi Cap Value Fund 1,673 20,532 -- 22,205 Disciplined Large Cap Value Fund 10,747 15,133 -- 25,880 LifeModel Aggressive Fund(SM) 1,135 686 -- 1,821 LifeModel Moderately Aggressive Fund(SM) 3,543 1,350 -- 4,893 LifeModel Moderate Fund(SM) 9,769 1,019 -- 10,788 LifeModel Moderately Conservative Fund(SM) 2,405 623 -- 3,028 LifeModel Conservative Fund(SM) 1,772 222 -- 1,994 Strategic Income Fund 7,053 124 -- 7,177 International Equity Fund 7,282 -- -- 7,282 Bond Fund 10,836 350 -- 11,186 Intermediate Bond Fund 26,550 -- -- 26,550 Short Term Bond Fund 15,767 -- -- 15,767 U.S. Government Bond Fund 1,790 -- -- 1,790 Municipal Bond Fund -- 2,247 $ 2,202 4,449 Intermediate Municipal Bond Fund -- 1,820 9,253 11,073 Ohio Municipal Bond Fund -- 1,118 4,957 6,075 Michigan Municipal Bond Fund -- 131 2,605 2,736 155 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- The tax character of distributions paid during the fiscal year ended July 31, 2004 was as follows (Amounts in thousands): Distributions paid from ----------------------- Net Long Term Tax Total Ordinary Capital Exempt Distributions Income Gains Income Paid --------- ---------- -------- --------------- Small Cap Growth Fund -- $ 38,533 -- $38,533 Large Cap Core Fund $ 1,268 -- -- 1,268 Equity Index Fund 8,131 -- -- 8,131 Balanced Fund 2,629 -- -- 2,629 Micro Cap Value Fund 5,591 6,560 -- 12,151 Small Cap Value Fund 4,071 -- -- 4,071 Multi Cap Value Fund 508 928 -- 1,436 Disciplined Large Cap Value Fund 11,531 8,117 -- 19,648 LifeModel Aggressive Fund(SM) 1,590 7 -- 1,597 LifeModel Moderately Aggressive Fund(SM) 3,790 25 -- 3,815 LifeModel Moderate Fund(SM) 5,489 28 -- 5,517 LifeModel Moderately Conservative Fund(SM) 3,330 12 -- 3,342 LifeModel Conservative Fund(SM) 1,741 7 -- 1,748 Strategic Income Fund 7,316 -- -- 7,316 International Equity Fund 4,086 -- -- 4,086 Bond Fund 11,354 -- -- 11,354 Intermediate Bond Fund 29,176 -- -- 29,176 Short Term Bond Fund 15,629 -- -- 15,629 U.S. Government Bond Fund 2,781 529 -- 3,310 Municipal Bond Fund 325 861 $ 2,907 4,093 Intermediate Municipal Bond Fund 497 2,119 9,854 12,470 Ohio Municipal Bond Fund -- 436 5,724 6,160 Michigan Municipal Bond Fund -- 186 3,500 3,686 As of July 31, 2005, the components of accumulated earnings/(deficit) on a tax basis was as follows (Amounts in thousands): Accumulated Undistributed Undistributed Undistributed Capital and Tax Exempt Ordinary Long-Term Distributions Other Income Income Capital Gains Payable Losses ------------- ------------- ------------- ------------- ------------- Small Cap Growth Fund -- -- $ 14,469 -- -- Mid Cap Growth Fund -- -- -- -- $ (21,604) Quality Growth Fund -- -- -- -- (101,433) Large Cap Core Fund -- $ 21 2,279 -- (41,699) Equity Index Fund -- 711 -- -- (52,606) Balanced Fund -- 123 -- -- (52,091) Micro Cap Value Fund -- -- 25,599 -- -- Small Cap Value Fund -- 6,779 3,575 -- -- Multi Cap Value Fund -- 323 11,271 -- -- Disciplined Large Cap Value Fund -- 7,709 32,544 -- -- LifeModel Aggressive Fund(SM) -- 23 3,132 -- -- LifeModel Moderately Aggressive Fund(SM) -- 1,075 5,004 -- -- LifeModel Moderate Fund(SM) -- 1,313 8,544 -- -- LifeModel Moderately Conservative Fund(SM) -- 261 1,825 -- -- LifeModel Conservative Fund(SM) -- 264 405 -- -- Strategic Income Fund -- 909 90 ($574) -- Select Stock Fund -- -- -- -- (17,543) Technology Fund -- -- -- -- (47,937) International Equity Fund -- 4,810 4,629 -- (34,621) Bond Fund -- 1,187 697 -- -- Intermediate Bond Fund -- 57 -- -- (25,995) Short Term Bond Fund -- 66 -- -- (16,655) U.S. Government Bond Fund -- 96 153 -- (104) Municipal Bond Fund $ 1 102 2,043 -- -- Intermediate Municipal Bond Fund 7 747 1,654 -- -- Ohio Municipal Bond Fund 71 42 275 -- -- Michigan Municipal Bond Fund 2 -- -- -- (55) Total Unrealized Accumulated Appreciation/ Earnings/ (Depreciation)* (Deficit) ------------- ------------- Small Cap Growth Fund $ 61,639 $ 76,108 Mid Cap Growth Fund 132,754 111,150 Quality Growth Fund 168,934 67,501 Large Cap Core Fund 17,454 (21,945) Equity Index Fund 215,311 163,416 Balanced Fund 11,950 (40,018) Micro Cap Value Fund 53,816 79,415 Small Cap Value Fund 23,809 34,163 Multi Cap Value Fund 114,695 126,289 Disciplined Large Cap Value Fund 135,707 175,960 LifeModel Aggressive Fund(SM) 24,083 27,238 LifeModel Moderately Aggressive Fund(SM) 41,202 47,281 LifeModel Moderate Fund(SM) 36,337 46,194 LifeModel Moderately Conservative Fund(SM) 9,926 12,012 LifeModel Conservative Fund(SM) 1,985 2,654 Strategic Income Fund 7,927 8,352 Select Stock Fund 2,575 (14,968) Technology Fund 2,356 (45,581) International Equity Fund 1,463 (23,719) Bond Fund 891 2,775 Intermediate Bond Fund (4,306) (30,244) Short Term Bond Fund (7,538) (24,127) U.S. Government Bond Fund (222) (77) Municipal Bond Fund 2,513 4,659 Intermediate Municipal Bond Fund 6,409 8,817 Ohio Municipal Bond Fund 4,030 4,418 Michigan Municipal Bond Fund 264 211 - --------------- * The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales and the difference between book and tax amortization methods for premium and market discount. 156 Fifth Third Funds Notes to Financial Statements, continued July 31, 2005 - -------------------------------------------------------------------------------- As of July 31, 2005, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset future capital gains, if any, to the extent provided by the treasury regulations (Amounts in thousands): Expiration Year ------------------------------------------------------------------------------------- 2006 2007 2008 2009 2010 2011 2012 2013 Total -------- -------- -------- -------- -------- -------- -------- -------- -------- Mid Cap Growth Fund -- -- -- -- -- $ 21,604 -- -- $ 21,604 Quality Growth Fund -- -- -- -- -- 101,433 -- -- 101,433 Large Cap Core Fund -- -- -- -- -- -- $ 793 -- 793 Equity Index Fund -- -- -- $ 3,493 $ 3,128 45,379 606 -- 52,606 Balanced Fund -- -- -- -- -- 52,091 -- -- 52,091 Select Stock Fund -- -- -- -- 14,480 3,024 39 -- 17,543 Technology Fund -- -- -- -- 14,996 32,941 -- -- 47,937 Intermediate Bond Fund -- -- $ 3,390 970 313 -- 2,968 $ 3,492 11,133 Short Term Bond Fund $ 238 $ 220 1,126 -- -- -- 733 6,363 8,680 As of July 31, 2005, the following Funds have additional capital loss carryforwards and built in losses, subject to certain limitations on availability, to offset future capital gains, if any, as the successor of a merger (Amounts in thousands): Expiration Year ------------------------------------- 2008 2009 2010 2011 Total ------- ------- ------- ------- ------- Large Cap Core Fund $19,165 $21,741 -- -- $40,906 International Equity Fund 2,769 868 $25,679 $ 5,305 34,621 Intermediate Bond Fund 10,029 -- -- -- 10,029 Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. For the year ended July 31, 2005, the fund deferred to August 1, 2005 post October capital losses, post October currency losses and post October passive foreign investment company losses of (Amounts in thousands): Capital Losses ---------- Intermediate Bond Fund $ 4,833 Short Term Bond Fund 7,975 U.S. Government Bond Fund 104 Michigan Municipal Bond Fund 55 (8) Concentration of Credit Risk The International Equity Fund invests in equity and fixed income securities of non-U.S. issuers.Although the Fund maintains a diversified investment portfolio, the political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations.Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings. The Intermediate Municipal Bond Fund held a substantial amount of their assets in debt obligations issued by the State of Michigan and their political subdivisions, agencies and public authorities at July 31, 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. (9) Subsequent Events Effective August 1, 2005, the Select Stock Fund was renamed the Dividend Growth Fund.Also effective August 1, 2005, 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), Dividend Growth Fund, Intermediate Bond Fund, Short Term Bond Fund, U.S. Government Bond Fund, Intermediate Municipal Bond Fund, Ohio Municipal Bond Fund and Michigan Municipal Bond Fund launched Advisor Shares. 157 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------------ Small Cap Growth Fund Institutional Shares Year ended 12/31/00 $19.29 -- (0.08) (0.08) -- (0.19) 1/01/01 to 7/31/01(c) $19.02 (0.02) (1.08) (1.10) -- (0.06) Year ended 7/31/02 $17.86 (0.04) (3.56) (3.60) -- (0.56) 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 -- (1.73) Year ended 7/31/05 $15.48 (0.10)@ 3.07 2.97 -- (2.87) - ------------------------------------------------------------------------------------------------------------------------------------ Small Cap Growth Fund Class A Shares Year ended 12/31/00 $19.19 -- (0.13) (0.13) -- (0.19) 1/01/01 to 7/31/01(c) $18.87 (0.04) (1.06) (1.10) -- (0.06) Year ended 7/31/02 $17.71 (0.07) (3.56) (3.63) -- (0.56) 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 -- (1.73) Year ended 7/31/05 $15.18 (0.14)@ 3.00 2.86 -- (2.87) - ------------------------------------------------------------------------------------------------------------------------------------ Small Cap Growth Fund Class B Shares 10/29/01(d)to 7/31/02 $16.54 (0.05) (2.34) (2.39) -- (0.56) 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 -- (1.73) Year ended 7/31/05 $15.02 (0.24)@ 2.94 2.70 -- (2.87) - ------------------------------------------------------------------------------------------------------------------------------------ Small Cap Growth Fund Class C Shares 10/29/01(d)to 7/31/02 $16.54 (0.11) (2.28) (2.39) -- (0.56) 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 -- (1.73) Year ended 7/31/05 $15.03 (0.24)@ 2.94 2.70 -- (2.87) - ------------------------------------------------------------------------------------------------------------------------------------ Small Cap Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 $16.54 (0.03) (2.31) (2.34) -- (0.56) 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 -- (1.73) Year ended 7/31/05 $15.25 (0.17)@ 3.00 2.83 -- (2.87) - ------------------------------------------------------------------------------------------------------------------------------------ Mid Cap Growth Fund Institutional Shares Year ended 7/31/01 $19.28 -- (1.69) (1.69) -- (2.49) Year ended 7/31/02 $15.10 (0.06) (4.33) (4.39) -- (0.47) 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 -- -- Year ended 7/31/05 $12.96 --^ 3.07 3.07 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Mid Cap Growth Fund Class A Shares Year ended 7/31/01 $19.16 -- (1.73) (1.73) -- (2.49) Year ended 7/31/02 $14.94 (0.09) (4.27) (4.36) -- (0.47) 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 -- -- Year ended 7/31/05 $12.72 (0.05) 3.02 2.97 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Mid Cap Growth Fund Class B Shares 10/11/00(d)to 7/31/01 $17.91 -- (0.56) (0.56) -- (2.49) Year ended 7/31/02 $14.86 (0.14) (4.27) (4.41) -- (0.47) 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 -- -- Year ended 7/31/05 $12.38 (0.15) 2.93 2.78 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Mid Cap Growth Fund Class C Shares Year ended 7/31/01 $18.65 -- (1.80) (1.80) -- (2.49) Year ended 7/31/02 $14.36 (0.18) (4.08) (4.26) -- (0.47) 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 -- -- Year ended 7/31/05 $11.94 (0.16) 2.83 2.67 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Mid Cap Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 $13.47 (0.04) (2.87) (2.91) -- (0.47) 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 -- -- Year ended 7/31/05 $12.65 (0.07) 2.98 2.91 -- -- Ratios/Supplemental Data ----------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ---------------------------------------------------------------------------------------------------------------------- Small Cap Growth Fund Institutional Shares Year ended 12/31/00 (0.19) $19.02 (0.38%) $804,758 0.91% 1/01/01 to 7/31/01(c) (0.06) $17.86 (5.75%)* $724,275 0.93%** Year ended 7/31/02 (0.56) $13.70 (20.80%) $485,623 0.93% Year ended 7/31/03 -- $15.90 16.06% $391,934 0.93% Year ended 7/31/04 (1.73) $15.48 7.31% $223,439 1.00% Year ended 7/31/05 (2.87) $15.58 20.81% $213,892 1.01% - ---------------------------------------------------------------------------------------------------------------------- Small Cap Growth Fund Class A Shares Year ended 12/31/00 (0.19) $18.87 (0.59%) $ 25,231 1.16% 1/01/01 to 7/31/01(c) (0.06) $17.71 (5.85%)* $ 21,481 1.18%** Year ended 7/31/02 (0.56) $13.52 (21.15%) $ 16,468 1.18% Year ended 7/31/03 -- $15.65 15.75% $ 16,471 1.19% Year ended 7/31/04 (1.73) $15.18 7.16% $ 25,921 1.25% Year ended 7/31/05 (2.87) $15.17 20.45% $ 22,714 1.26% - ---------------------------------------------------------------------------------------------------------------------- Small Cap Growth Fund Class B Shares 10/29/01(d)to 7/31/02 (0.56) $13.59 (13.01%)* $ 872 1.93%** Year ended 7/31/03 -- $15.61 14.86% $ 1,407 1.94% Year ended 7/31/04 (1.73) $15.02 6.30% $ 1,784 2.00% Year ended 7/31/05 (2.87) $14.85 19.51% $ 1,805 2.01% - ---------------------------------------------------------------------------------------------------------------------- Small Cap Growth Fund Class C Shares 10/29/01(d)to 7/31/02 (0.56) $13.59 (13.01%)* $ 346 1.93%** Year ended 7/31/03 -- $15.62 14.94% $ 436 1.93% Year ended 7/31/04 (1.73) $15.03 6.29% $ 810 2.00% Year ended 7/31/05 (2.87) $14.86 19.57% $ 618 2.01% - ---------------------------------------------------------------------------------------------------------------------- Small Cap Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.56) $13.64 (12.69%)* $ 220 1.43%** Year ended 7/31/03 -- $15.75 15.47% $ 469 1.44% Year ended 7/31/04 (1.73) $15.25 6.84% $ 1,173 1.51% Year ended 7/31/05 (2.87) $15.21 20.13% $ 1,195 1.51% - ---------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Fund Institutional Shares Year ended 7/31/01 (2.49) $15.10 (9.94%) $255,634 1.02% Year ended 7/31/02 (0.47) $10.24 (30.02%) $207,807 1.12% Year ended 7/31/03 -- $12.02 17.38% $335,285 1.10% Year ended 7/31/04 -- $12.96 7.82% $335,815 1.09% Year ended 7/31/05 -- $16.03 23.69% $392,929 1.09% - ---------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Fund Class A Shares Year ended 7/31/01 (2.49) $14.94 (10.18%) $ 41,278 1.28% Year ended 7/31/02 (0.47) $10.11 (30.21%) $ 30,165 1.36% Year ended 7/31/03 -- $11.82 17.03% $ 35,504 1.35% Year ended 7/31/04 -- $12.72 7.61% $ 49,586 1.34% Year ended 7/31/05 -- $15.69 23.35% $ 41,921 1.34% - ---------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Fund Class B Shares 10/11/00(d)to 7/31/01 (2.49) $14.86 (4.46%)* $ 3,757 2.05%** Year ended 7/31/02 (0.47) $ 9.98 (30.65%) $ 5,008 2.12% Year ended 7/31/03 -- $11.59 16.13% $ 5,846 2.10% Year ended 7/31/04 -- $12.38 6.82% $ 6,730 2.09% Year ended 7/31/05 -- $15.16 22.46% $ 6,874 2.09% - ---------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Fund Class C Shares Year ended 7/31/01 (2.49) $14.36 (10.95%) $ 1,410 1.99% Year ended 7/31/02 (0.47) $ 9.63 (30.67%) $ 1,061 2.12% Year ended 7/31/03 -- $11.17 15.99% $ 1,525 2.10% Year ended 7/31/04 -- $11.94 6.89% $ 1,700 2.09% Year ended 7/31/05 -- $14.61 22.36% $ 1,600 2.09% - ---------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.47) $10.09 (19.75%)* $ 145 1.68%** Year ended 7/31/03 -- $11.78 16.75% $ 240 1.60% Year ended 7/31/04 -- $12.65 7.39% $ 962 1.59% Year ended 7/31/05 -- $15.56 23.00% $ 1,218 1.59% - ---------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data -------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - ----------------------------------------------------------------------------------------------- Small Cap Growth Fund Institutional Shares Year ended 12/31/00 (0.11%) 0.92% 28% 1/01/01 to 7/31/01(c) (0.16%)** 0.93%** 13% Year ended 7/31/02 (0.21%) 0.96% 25% Year ended 7/31/03 (0.16%) 0.98% 63% Year ended 7/31/04 (0.72%) 1.00% 95% Year ended 7/31/05 (0.68%) 1.01% 65% - ----------------------------------------------------------------------------------------------- Small Cap Growth Fund Class A Shares Year ended 12/31/00 (0.36%) 1.17% 28% 1/01/01 to 7/31/01(c) (0.41%)** 1.18%** 13% Year ended 7/31/02 (0.46%) 1.21% 25% Year ended 7/31/03 (0.42%) 1.23% 63% Year ended 7/31/04 (0.99%) 1.25% 95% Year ended 7/31/05 (0.93%) 1.26% 65% - ----------------------------------------------------------------------------------------------- Small Cap Growth Fund Class B Shares 10/29/01(d)to 7/31/02 (1.25%)** 1.98%** 25% Year ended 7/31/03 (1.17%) 1.98% 63% Year ended 7/31/04 (1.74%) 2.00% 95% Year ended 7/31/05 (1.68%) 2.01% 65% - ----------------------------------------------------------------------------------------------- Small Cap Growth Fund Class C Shares 10/29/01(d)to 7/31/02 (1.26%)** 1.97%** 25% Year ended 7/31/03 (1.16%) 1.98% 63% Year ended 7/31/04 (1.74%) 2.00% 95% Year ended 7/31/05 (1.68%) 2.01% 65% - ----------------------------------------------------------------------------------------------- Small Cap Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.74%)** 1.48%** 25% Year ended 7/31/03 (0.66%) 1.48% 63% Year ended 7/31/04 (1.26%) 1.51% 95% Year ended 7/31/05 (1.18%) 1.51% 65% - ----------------------------------------------------------------------------------------------- Mid Cap Growth Fund Institutional Shares Year ended 7/31/01 (0.24%) 1.06% 26% Year ended 7/31/02 (0.49%) 1.14% 27% Year ended 7/31/03 (0.65%) 1.10% 25% Year ended 7/31/04 (0.68%) 1.09% 83% Year ended 7/31/05 (0.03%) 1.09% 54% - ----------------------------------------------------------------------------------------------- Mid Cap Growth Fund Class A Shares Year ended 7/31/01 (0.49%) 1.32% 26% Year ended 7/31/02 (0.74%) 1.39% 27% Year ended 7/31/03 (0.89%) 1.35% 25% Year ended 7/31/04 (0.93%) 1.34% 83% Year ended 7/31/05 (0.29%) 1.34% 54% - ----------------------------------------------------------------------------------------------- Mid Cap Growth Fund Class B Shares 10/11/00(d)to 7/31/01 (1.24%)** 2.09%** 26% Year ended 7/31/02 (1.51%) 2.15% 27% Year ended 7/31/03 (1.64%) 2.10% 25% Year ended 7/31/04 (1.68%) 2.09% 83% Year ended 7/31/05 (1.03%) 2.09% 54% - ----------------------------------------------------------------------------------------------- Mid Cap Growth Fund Class C Shares Year ended 7/31/01 (1.20%) 2.15% 26% Year ended 7/31/02 (1.49%) 2.14% 27% Year ended 7/31/03 (1.64%) 2.10% 25% Year ended 7/31/04 (1.68%) 2.09% 83% Year ended 7/31/05 (1.03%) 2.09% 54% - ----------------------------------------------------------------------------------------------- Mid Cap Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 (1.06%)** 1.71%** 27% Year ended 7/31/03 (1.14%) 1.60% 25% Year ended 7/31/04 (1.17%) 1.59% 83% Year ended 7/31/05 (0.52%) 1.59% 54% - ----------------------------------------------------------------------------------------------- See notes to financial highlights 158 & 159 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ---------------------------------------------------------------------------------------------------------------------------------- Quality Growth Fund Institutional Shares Year ended 7/31/01 $26.24 -- (4.85) (4.85) -- (2.91) Year ended 7/31/02 $18.48 (0.04) (4.94) (4.98) -- (0.59) 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 -- -- Year ended 7/31/05 $14.61 0.03 1.74 1.77 (0.04) -- - ---------------------------------------------------------------------------------------------------------------------------------- Quality Growth Fund Class A Shares Year ended 7/31/01 $26.12 -- (4.88) (4.88) -- (2.91) Year ended 7/31/02 $18.33 (0.08) (4.89) (4.97) -- (0.59) 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 -- -- Year ended 7/31/05 $14.38 (0.02) 1.72 1.70 (0.03) -- - ---------------------------------------------------------------------------------------------------------------------------------- Quality Growth Fund Class B Shares 10/11/00(d)to 7/31/01 $24.17 -- (3.03) (3.03) -- (2.91) Year ended 7/31/02 $18.23 (0.16) (4.88) (5.04) -- (0.59) 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 -- -- Year ended 7/31/05 $13.99 (0.14) 1.67 1.53 --^ -- - ---------------------------------------------------------------------------------------------------------------------------------- Quality Growth Fund Class C Shares Year ended 7/31/01 $25.59 -- (4.90) (4.90) -- (2.91) Year ended 7/31/02 $17.78 (0.20) (4.71) (4.91) -- (0.59) 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 -- -- Year ended 7/31/05 $13.63 (0.15) 1.64 1.49 --^ -- - ---------------------------------------------------------------------------------------------------------------------------------- Quality Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 $16.79 (0.03) (3.42) (3.45) -- (0.59) 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 -- -- Year ended 7/31/05 $14.29 (0.06) 1.71 1.65 (0.02) -- - ---------------------------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Institutional Shares Year ended 12/31/00 $20.42 0.07 (2.24) (2.17) (0.07) (1.34) 1/1/01 to 7/31/01(c) $16.84 0.03 (1.43) (1.40) (0.03) (0.24) Year ended 7/31/02 $15.17 0.08 (3.66) (3.58) (0.08) (0.31) Year ended 7/31/03 $11.20 0.12 0.63 0.75 (0.11) -- Year ended 7/31/04 $11.84 0.12 1.36 1.48 (0.12) -- Year ended 7/31/05 $13.20 0.18 1.76 1.94 (0.18) (0.35) - ---------------------------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Class A Shares Year ended 12/31/00 $20.25 0.02 (2.22) (2.20) (0.02) (1.34) 1/1/01 to 7/31/01(c) $16.69 0.02 (1.42) (1.40) (0.03) (0.24) Year ended 7/31/02 $15.02 0.05 (3.62) (3.57) (0.07) (0.31) Year ended 7/31/03 $11.07 0.08 0.64 0.72 (0.09) -- Year ended 7/31/04 $11.70 0.07 1.36 1.43 (0.09) -- Year ended 7/31/05 $13.04 0.14 1.73 1.87 (0.14) (0.35) - ---------------------------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Class B Shares 10/29/01(d)to 7/31/02 $13.86 0.02 (2.41) (2.39) (0.04) (0.31) Year ended 7/31/03 $11.12 --^ 0.65 0.65 (0.02) -- Year ended 7/31/04 $11.75 (0.02) 1.36 1.34 (0.01) -- Year ended 7/31/05 $13.08 0.04 1.74 1.78 (0.05) (0.35) - ---------------------------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Class C Shares 10/29/01(d)to 7/31/02 $13.86 0.03 (2.40) (2.37) (0.03) (0.31) Year ended 7/31/03 $11.15 0.01 0.63 0.64 (0.03) -- Year ended 7/31/04 $11.76 (0.01) 1.35 1.34 (0.02) -- Year ended 7/31/05 $13.08 0.03 1.74 1.77 (0.04) (0.35) - ---------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ---------------------------------------------------------------------------------------------------------------- Quality Growth Fund Institutional Shares Year ended 7/31/01 (2.91) $18.48 (19.93%) $716,251 1.02% Year ended 7/31/02 (0.59) $12.91 (27.90%) $566,235 1.09% Year ended 7/31/03 --^ $14.23 10.23% $795,988 1.08% Year ended 7/31/04 -- $14.61 2.67% $882,256 1.07% Year ended 7/31/05 (0.04) $16.34 12.13% $707,766 1.08% - ---------------------------------------------------------------------------------------------------------------- Quality Growth Fund Class A Shares Year ended 7/31/01 (2.91) $18.33 (20.16%) $340,596 1.28% Year ended 7/31/02 (0.59) $12.77 (28.08%) $221,972 1.34% Year ended 7/31/03 -- $14.04 9.95% $211,221 1.33% Year ended 7/31/04 -- $14.38 2.42% $220,904 1.32% Year ended 7/31/05 (0.03) $16.05 11.83% $165,836 1.33% - ---------------------------------------------------------------------------------------------------------------- Quality Growth Fund Class B Shares 10/11/00(d)to 7/31/01 (2.91) $18.23 (24.58%)* $ 14,531 2.05%** Year ended 7/31/02 (0.59) $12.60 (28.63%) $ 19,678 2.10% Year ended 7/31/03 -- $13.75 9.13% $ 20,700 2.08% Year ended 7/31/04 -- $13.99 1.75% $ 20,947 2.07% Year ended 7/31/05 --^ $15.52 10.95% $ 17,791 2.08% - ---------------------------------------------------------------------------------------------------------------- Quality Growth Fund Class C Shares Year ended 7/31/01 (2.91) $17.78 (20.71%) $ 11,687 1.98% Year ended 7/31/02 (0.59) $12.28 (28.62%) $ 8,044 2.09% Year ended 7/31/03 -- $13.40 9.12% $ 8,380 2.08% Year ended 7/31/04 -- $13.63 1.72% $ 7,536 2.07% Year ended 7/31/05 --^ $15.12 10.95% $ 5,238 2.08% - ---------------------------------------------------------------------------------------------------------------- Quality Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.59) $12.75 (19.05%)* $ 366 1.69%** Year ended 7/31/03 -- $13.98 9.65% $ 1,205 1.58% Year ended 7/31/04 -- $14.29 2.22% $ 3,127 1.57% Year ended 7/31/05 (0.02) $15.92 11.57% $ 3,257 1.58% - ---------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Institutional Shares Year ended 12/31/00 (1.41) $16.84 (11.25%) $624,860 0.91% 1/1/01 to 7/31/01(c) (0.27) $15.17 (8.24%)* $547,524 0.93%** Year ended 7/31/02 (0.39) $11.20 (24.07%) $520,727 0.93% Year ended 7/31/03 (0.11) $11.84 6.79% $181,278 0.92% Year ended 7/31/04 (0.12) $13.20 12.50% $ 90,222 0.92% Year ended 7/31/05 (0.53) $14.61 14.92% $169,723 0.92% - ---------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Class A Shares Year ended 12/31/00 (1.36) $16.69 (11.47%) $ 47,847 1.16% 1/1/01 to 7/31/01(c) (0.27) $15.02 (8.36%)* $ 38,659 1.18%** Year ended 7/31/02 (0.38) $11.07 (24.25%) $ 23,320 1.18% Year ended 7/31/03 (0.09) $11.70 6.56% $ 21,288 1.17% Year ended 7/31/04 (0.09) $13.04 12.21% $ 25,573 1.17% Year ended 7/31/05 (0.49) $14.42 14.58% $ 24,026 1.17% - ---------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Class B Shares 10/29/01(d)to 7/31/02 (0.35) $11.12 (15.86%)* $ 361 1.93%** Year ended 7/31/03 (0.02) $11.75 5.90% $ 557 1.92% Year ended 7/31/04 (0.01) $13.08 11.47% $ 783 1.92% Year ended 7/31/05 (0.40) $14.46 13.67% $ 1,007 1.92% - ---------------------------------------------------------------------------------------------------------------- Large Cap Core Fund Class C Shares 10/29/01(d)to 7/31/02 (0.34) $11.15 (15.66%)* $ 20 1.90%** Year ended 7/31/03 (0.03) $11.76 5.72% $ 29 1.92% Year ended 7/31/04 (0.02) $13.08 11.38% $ 158 1.92% Year ended 7/31/05 (0.39) $14.46 13.73% $ 193 1.92% - ---------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data ---------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - --------------------------------------------------------------------------------------------- Quality Growth Fund Institutional Shares Year ended 7/31/01 (0.22%) 1.02% 20% Year ended 7/31/02 (0.24%) 1.09% 20% Year ended 7/31/03 0.05% 1.08% 19% Year ended 7/31/04 (0.24%) 1.07% 35% Year ended 7/31/05 0.16% 1.08% 71% - --------------------------------------------------------------------------------------------- Quality Growth Fund Class A Shares Year ended 7/31/01 (0.46%) 1.28% 20% Year ended 7/31/02 (0.49%) 1.34% 20% Year ended 7/31/03 (0.19%) 1.33% 19% Year ended 7/31/04 (0.49%) 1.32% 35% Year ended 7/31/05 (0.08%) 1.33% 71% - --------------------------------------------------------------------------------------------- Quality Growth Fund Class B Shares 10/11/00(d)to 7/31/01 (1.22%)** 2.05%** 20% Year ended 7/31/02 (1.25%) 2.10% 20% Year ended 7/31/03 (0.94%) 2.08% 19% Year ended 7/31/04 (1.24%) 2.07% 35% Year ended 7/31/05 (0.85%) 2.08% 71% - --------------------------------------------------------------------------------------------- Quality Growth Fund Class C Shares Year ended 7/31/01 (1.17%) 2.11% 20% Year ended 7/31/02 (1.24%) 2.09% 20% Year ended 7/31/03 (0.94%) 2.08% 19% Year ended 7/31/04 (1.24%) 2.07% 35% Year ended 7/31/05 (0.83%) 2.08% 71% - --------------------------------------------------------------------------------------------- Quality Growth Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.80%)** 1.69%** 20% Year ended 7/31/03 (0.48%) 1.58% 19% Year ended 7/31/04 (0.75%) 1.57% 35% Year ended 7/31/05 (0.38%) 1.58% 71% - --------------------------------------------------------------------------------------------- Large Cap Core Fund Institutional Shares Year ended 12/31/00 0.35% 0.92% 14% 1/1/01 to 7/31/01(c) 0.40%** 0.94%** 5% Year ended 7/31/02 0.64% 0.97% 5% Year ended 7/31/03 0.99% 0.99% 13% Year ended 7/31/04 0.84% 1.04% 101% Year ended 7/31/05 1.17% 1.05% 102% - --------------------------------------------------------------------------------------------- Large Cap Core Fund Class A Shares Year ended 12/31/00 0.10% 1.17% 14% 1/1/01 to 7/31/01(c) 0.15%** 1.19%** 5% Year ended 7/31/02 0.38% 1.22% 5% Year ended 7/31/03 0.72% 1.24% 13% Year ended 7/31/04 0.58% 1.29% 101% Year ended 7/31/05 0.99% 1.31% 102% - --------------------------------------------------------------------------------------------- Large Cap Core Fund Class B Shares 10/29/01(d)to 7/31/02 (0.36%)** 1.99%** 5% Year ended 7/31/03 (0.05%) 1.98% 13% Year ended 7/31/04 (0.17%) 2.04% 101% Year ended 7/31/05 0.18% 2.06% 102% - --------------------------------------------------------------------------------------------- Large Cap Core Fund Class C Shares 10/29/01(d)to 7/31/02 (0.12%)** 1.97%** 5% Year ended 7/31/03 (0.04%) 1.99% 13% Year ended 7/31/04 (0.23%) 2.03% 101% Year ended 7/31/05 0.21% 2.06% 102% - --------------------------------------------------------------------------------------------- See notes to financial highlights 160 & 161 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income Transactions Operations Income Gains - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Institutional Shares Year ended 12/31/00 $28.31 0.22 (2.81) (2.59) (0.22) (0.32) 1/1/01 to 7/31/01(c) $25.18 0.12 (2.08) (1.96) (0.11) -- Year ended 7/31/02 $23.11 0.23 (5.70) (5.47) (0.22) -- Year ended 7/31/03 $17.42 0.24 1.51 1.75 (0.24) -- Year ended 7/31/04 $18.93 0.29@ 2.12 2.41 (0.33) -- Year ended 7/31/05 $21.01 0.44@ 2.45 2.89 (0.44) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Class A Shares Year ended 12/31/00 $28.32 0.15 (2.80) (2.65) (0.15) (0.32) 1/1/01 to 7/31/01(c) $25.20 0.09 (2.09) (2.00) (0.10) -- Year ended 7/31/02 $23.10 0.17 (5.69) (5.52) (0.20) -- Year ended 7/31/03 $17.38 0.20 1.50 1.70 (0.21) -- Year ended 7/31/04 $18.87 0.25@ 2.10 2.35 (0.28) -- Year ended 7/31/05 $20.94 0.37@ 2.46 2.83 (0.39) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Class B Shares 10/29/01(d)to 7/31/02 $21.07 0.06 (3.69) (3.63) (0.12) -- Year ended 7/31/03 $17.32 0.07 1.50 1.57 (0.11) -- Year ended 7/31/04 $18.78 0.09@ 2.09 2.18 (0.13) -- Year ended 7/31/05 $20.83 0.20@ 2.44 2.64 (0.23) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Class C Shares 10/29/01(d)to 7/31/02 $21.07 0.10 (3.73) (3.63) (0.11) -- Year ended 7/31/03 $17.33 0.08 1.49 1.57 (0.12) -- Year ended 7/31/04 $18.78 0.09@ 2.10 2.19 (0.13) -- Year ended 7/31/05 $20.84 0.20@ 2.44 2.64 (0.22) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Advisor Shares 10/29/01(d)to 7/31/02 $21.07 0.13 (3.67) (3.54) (0.14) -- Year ended 7/31/03 $17.39 0.18 1.48 1.66 (0.19) -- Year ended 7/31/04 $18.86 0.20@ 2.10 2.30 (0.24) -- Year ended 7/31/05 $20.92 0.31@ 2.45 2.76 (0.33) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Select Shares 10/20/03 (d)to 7/31/04 $19.86 0.22@ 1.18 1.40 (0.26) -- Year ended 7/31/05 $21.00 0.41@ 2.47 2.88 (0.43) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Preferred Shares 10/20/03 (d)to 7/31/04 $19.86 0.22@ 1.18 1.40 (0.25) -- Year ended 7/31/05 $21.01 0.43@ 2.41 2.84 (0.40) -- - ---------------------------------------------------------------------------------------------------------------------------------- Equity Index Fund Trust Shares 10/20/03 (d)to 7/31/04 $19.86 0.20@ 1.18 1.38 (0.23) -- Year ended 7/31/05 $21.01 0.37@ 2.46 2.83 (0.39) -- - ---------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Institutional Shares Year ended 12/31/00 (0.54) $25.18 (9.30%) $860,647 0.40% 1/1/01 to 7/31/01(c) (0.11) $23.11 (7.83%)* $822,909 0.40%** Year ended 7/31/02 (0.22) $17.42 (23.82%) $608,556 0.41% Year ended 7/31/03 (0.24) $18.93 10.22% $583,530 0.40% Year ended 7/31/04 (0.33) $21.01 12.75% $193,734 0.27% Year ended 7/31/05 (0.44) $23.46 13.86% $168,279 0.19% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Class A Shares Year ended 12/31/00 (0.47) $25.20 (9.52%) $ 38,930 0.65% 1/1/01 to 7/31/01(c) (0.10) $23.10 (7.94%)* $ 33,765 0.65%** Year ended 7/31/02 (0.20) $17.38 (24.03%) $ 24,817 0.66% Year ended 7/31/03 (0.21) $18.87 9.90% $ 33,402 0.65% Year ended 7/31/04 (0.28) $20.94 12.48% $ 72,944 0.47% Year ended 7/31/05 (0.39) $23.38 13.58% $ 70,261 0.44% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Class B Shares 10/29/01(d)to 7/31/02 (0.12) $17.32 (15.32%)* $ 1,315 1.40%** Year ended 7/31/03 (0.11) $18.78 9.14% $ 2,409 1.40% Year ended 7/31/04 (0.13) $20.83 11.64% $ 3,776 1.23% Year ended 7/31/05 (0.23) $23.24 12.74% $ 4,399 1.19% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Class C Shares 10/29/01(d)to 7/31/02 (0.11) $17.33 (15.30%)* $ 635 1.41%** Year ended 7/31/03 (0.12) $18.78 9.14% $ 1,711 1.40% Year ended 7/31/04 (0.13) $20.84 11.66% $ 1,990 1.23% Year ended 7/31/05 (0.22) $23.26 12.72% $ 2,301 1.19% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.14) $17.39 (14.89%)* $ 7 0.82%** Year ended 7/31/03 (0.19) $18.86 9.68% $ 327 0.90% Year ended 7/31/04 (0.24) $20.92 12.21% $ 1,296 0.71% Year ended 7/31/05 (0.33) $23.35 13.28% $ 1,928 0.69% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Select Shares 10/20/03 (d)to 7/31/04 (0.26) $21.00 7.03%* $ 14,315 0.27%** Year ended 7/31/05 (0.43) $23.45 13.79% $ 18,690 0.27% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Preferred Shares 10/20/03 (d)to 7/31/04 (0.25) $21.01 7.03%* $165,845 0.34%** Year ended 7/31/05 (0.40) $23.45 13.62% $ 78,132 0.34% - ---------------------------------------------------------------------------------------------------------------- Equity Index Fund Trust Shares 10/20/03 (d)to 7/31/04 (0.23) $21.01 6.95%* $ 80,759 0.44%** Year ended 7/31/05 (0.39) $23.45 13.53% $ 76,295 0.44% - ---------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data ----------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - --------------------------------------------------------------------------------------------- Equity Index Fund Institutional Shares Year ended 12/31/00 0.80% 0.53% 9% 1/1/01 to 7/31/01(c) 0.86%** 0.53%** 4% Year ended 7/31/02 1.06% 0.56% 9% Year ended 7/31/03 1.42% 0.58% 2% Year ended 7/31/04 1.43% 0.58% 14% Year ended 7/31/05 1.97% 0.62% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Class A Shares Year ended 12/31/00 0.55% 0.78% 9% 1/1/01 to 7/31/01(c) 0.61%** 0.78%** 4% Year ended 7/31/02 0.81% 0.81% 9% Year ended 7/31/03 1.16% 0.83% 2% Year ended 7/31/04 1.19% 0.86% 14% Year ended 7/31/05 1.69% 0.87% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Class B Shares 10/29/01(d)to 7/31/02 0.08%** 1.57%** 9% Year ended 7/31/03 0.40% 1.57% 2% Year ended 7/31/04 0.44% 1.60% 14% Year ended 7/31/05 0.93% 1.63% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Class C Shares 10/29/01(d)to 7/31/02 0.11%** 1.58%** 9% Year ended 7/31/03 0.39% 1.57% 2% Year ended 7/31/04 0.44% 1.60% 14% Year ended 7/31/05 0.90% 1.63% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Advisor Shares 10/29/01(d)to 7/31/02 0.62%** 0.88%** 9% Year ended 7/31/03 0.84% 1.06% 2% Year ended 7/31/04 0.94% 1.11% 14% Year ended 7/31/05 1.40% 1.13% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Select Shares 10/20/03 (d)to 7/31/04 1.32%** 0.69%** 14% Year ended 7/31/05 1.83% 0.71% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Preferred Shares 10/20/03 (d)to 7/31/04 1.31%** 0.76%** 14% Year ended 7/31/05 1.98% 0.77% 4% - --------------------------------------------------------------------------------------------- Equity Index Fund Trust Shares 10/20/03 (d)to 7/31/04 1.22%** 0.86%** 14% Year ended 7/31/05 1.69% 0.87% 4% - --------------------------------------------------------------------------------------------- See notes to financial highlights 162 & 163 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income Transactions Operations Income Gains - ---------------------------------------------------------------------------------------------------------------------------------- Balanced Fund Institutional Shares Year ended 7/31/01 $17.39 0.18 (1.97) (1.79) (0.21) (2.00) Year ended 7/31/02(e) $13.39 0.14 (2.27) (2.13) (0.15) (0.20) Year ended 7/31/03 $10.91 0.15 0.49 0.64 (0.17) -- Year ended 7/31/04 $11.38 0.13 0.64 0.77 (0.15) -- Year ended 7/31/05 $12.00 0.24 0.80 1.04 (0.25) -- - ---------------------------------------------------------------------------------------------------------------------------------- Balanced Fund Class A Shares Year ended 7/31/01 $17.37 0.18 (2.00) (1.82) (0.20) (2.00) Year ended 7/31/02(e) $13.35 0.12 (2.27) (2.15) (0.14) (0.20) Year ended 7/31/03 $10.86 0.13 0.48 0.61 (0.15) -- Year ended 7/31/04 $11.32 0.10 0.63 0.73 (0.12) -- Year ended 7/31/05 $11.93 0.21 0.79 1.00 (0.22) -- - ---------------------------------------------------------------------------------------------------------------------------------- Balanced Fund Class B Shares 10/11/00(d)to 7/31/01 $16.53 0.17 (1.27) (1.10) (0.15) (2.00) Year ended 7/31/02(e) $13.28 0.02 (2.24) (2.22) (0.11) (0.20) Year ended 7/31/03 $10.75 0.04 0.48 0.52 (0.08) -- Year ended 7/31/04 $11.19 0.01 0.63 0.64 (0.03) -- Year ended 7/31/05 $11.80 0.11 0.79 0.90 (0.13) -- - ---------------------------------------------------------------------------------------------------------------------------------- Balanced Fund Class C Shares Year ended 7/31/01 $17.35 0.15 (2.07) (1.92) (0.17) (2.00) Year ended 7/31/02(e) $13.26 0.02 (2.24) (2.22) (0.11) (0.20) Year ended 7/31/03 $10.73 0.04 0.48 0.52 (0.08) -- Year ended 7/31/04 $11.17 0.01 0.63 0.64 (0.03) -- Year ended 7/31/05 $11.78 0.11 0.79 0.90 (0.13) -- - ---------------------------------------------------------------------------------------------------------------------------------- Balanced Fund Advisor Shares 10/29/01(d)to 7/31/02(e) $12.58 0.07 (1.50) (1.43) (0.11) (0.20) Year ended 7/31/03 $10.84 0.10 0.49 0.59 (0.13) -- Year ended 7/31/04 $11.30 0.06 0.64 0.70 (0.09) -- Year ended 7/31/05 $11.91 0.17 0.79 0.96 (0.19) -- - ---------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data ----------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ------------------------------------------------------------------------------------------------------------ Balanced Fund Institutional Shares Year ended 7/31/01 (2.21) $13.39 (11.64%) $211,221 1.01% Year ended 7/31/02(e) (0.35) $10.91 (16.34%) $189,730 1.10% Year ended 7/31/03 (0.17) $11.38 5.94% $177,052 1.10% Year ended 7/31/04 (0.15) $12.00 6.76% $ 98,282 1.13% Year ended 7/31/05 (0.25) $12.79 8.73% $ 59,868 1.02% - ------------------------------------------------------------------------------------------------------------ Balanced Fund Class A Shares Year ended 7/31/01 (2.20) $13.35 (11.84%) $106,275 1.26% Year ended 7/31/02(e) (0.34) $10.86 (16.53%) $ 81,079 1.34% Year ended 7/31/03 (0.15) $11.32 5.57% $ 73,287 1.35% Year ended 7/31/04 (0.12) $11.93 6.52% $ 74,231 1.38% Year ended 7/31/05 (0.22) $12.71 8.41% $ 59,274 1.27% - ------------------------------------------------------------------------------------------------------------ Balanced Fund Class B Shares 10/11/00(d)to 7/31/01 (2.15) $13.28 (8.14%)* $ 10,239 2.03%** Year ended 7/31/02(e) (0.31) $10.75 (17.14%) $ 14,007 2.10% Year ended 7/31/03 (0.08) $11.19 4.87% $ 13,972 2.10% Year ended 7/31/04 (0.03) $11.80 5.72% $ 13,117 2.13% Year ended 7/31/05 (0.13) $12.57 7.61% $ 10,957 2.02% - ------------------------------------------------------------------------------------------------------------ Balanced Fund Class C Shares Year ended 7/31/01 (2.17) $13.26 (12.47%) $ 6,883 1.96% Year ended 7/31/02(e) (0.31) $10.73 (17.16%) $ 4,963 2.09% Year ended 7/31/03 (0.08) $11.17 4.90% $ 5,747 2.10% Year ended 7/31/04 (0.03) $11.78 5.71% $ 4,731 2.13% Year ended 7/31/05 (0.13) $12.55 7.62% $ 4,046 2.02% - ------------------------------------------------------------------------------------------------------------ Balanced Fund Advisor Shares 10/29/01(d)to 7/31/02(e) (0.31) $10.84 (9.24%)* $ 38 1.63%** Year ended 7/31/03 (0.13) $11.30 5.39% $ 104 1.60% Year ended 7/31/04 (0.09) $11.91 6.31% $ 176 1.64% Year ended 7/31/05 (0.19) $12.68 8.08% $ 185 1.52% - ------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - -------------------------------------------------------------------------------------- Balanced Fund Institutional Shares Year ended 7/31/01 1.48% 1.07% 77% Year ended 7/31/02(e) 1.11% 1.13% 78% Year ended 7/31/03 1.39% 1.12% 133% Year ended 7/31/04 1.07% 1.13% 166% Year ended 7/31/05 1.89% 1.18% 146% - -------------------------------------------------------------------------------------- Balanced Fund Class A Shares Year ended 7/31/01 1.23% 1.32% 77% Year ended 7/31/02(e) 0.86% 1.38% 78% Year ended 7/31/03 1.14% 1.37% 133% Year ended 7/31/04 0.79% 1.38% 166% Year ended 7/31/05 1.63% 1.44% 146% - -------------------------------------------------------------------------------------- Balanced Fund Class B Shares 10/11/00(d)to 7/31/01 0.42%** 2.09%** 77% Year ended 7/31/02(e) 0.10% 2.14% 78% Year ended 7/31/03 0.39% 2.12% 133% Year ended 7/31/04 0.05% 2.13% 166% Year ended 7/31/05 0.86% 2.19% 146% - -------------------------------------------------------------------------------------- Balanced Fund Class C Shares Year ended 7/31/01 0.53% 2.15% 77% Year ended 7/31/02(e) 0.11% 2.13% 78% Year ended 7/31/03 0.38% 2.12% 133% Year ended 7/31/04 0.05% 2.13% 166% Year ended 7/31/05 0.85% 2.19% 146% - -------------------------------------------------------------------------------------- Balanced Fund Advisor Shares 10/29/01(d)to 7/31/02(e) 0.55%** 1.68%** 78% Year ended 7/31/03 0.82% 1.61% 133% Year ended 7/31/04 0.52% 1.64% 166% Year ended 7/31/05 1.33% 1.69% 146% - -------------------------------------------------------------------------------------- See notes to financial highlights 164 & 165 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ---------------------------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Institutional Shares Year ended 12/31/00 $ 5.62 0.06 (0.13) (0.07) (0.05) (0.59) 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 -- (0.05) Year ended 7/31/04 $ 8.20 (0.02)@ 2.66 2.64 -- (0.52) Year ended 7/31/05 $10.32 (0.01)@ 1.41 1.40 -- (0.72) - ---------------------------------------------------------------------------------------------------------------------------------- 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 -- (0.05) Year ended 7/31/04 $ 8.08 (0.05)@ 2.63 2.58 -- (0.52) Year ended 7/31/05 $10.14 (0.03)@ 1.39 1.36 -- (0.72) - ---------------------------------------------------------------------------------------------------------------------------------- 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 -- (0.05) Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51 -- (0.52) Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32 -- (0.72) - ---------------------------------------------------------------------------------------------------------------------------------- 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 -- (0.05) Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51 -- (0.52) Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32 -- (0.72) - ---------------------------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Advisor Shares Year ended 12/31/00 $ 5.58 0.03 (0.11) (0.08) (0.03) (0.59) 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 -- (0.05) Year ended 7/31/04 $ 8.05 (0.06)@ 2.62 2.56 -- (0.52) Year ended 7/31/05 $10.09 (0.03)@ 1.37 1.34 -- (0.72) - ---------------------------------------------------------------------------------------------------------------------------------- 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 (0.02) (0.98) Year ended 7/31/05 $20.01 (0.04)@ 4.51 4.47 -- (1.66) - ---------------------------------------------------------------------------------------------------------------------------------- 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 --^ (0.98) Year ended 7/31/05 $19.95 (0.10)@ 4.49 4.39 -- (1.66) - ---------------------------------------------------------------------------------------------------------------------------------- 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 -- (0.98) Year ended 7/31/05 $19.76 (0.24)@ 4.43 4.19 -- (1.66) - ---------------------------------------------------------------------------------------------------------------------------------- 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 -- (0.98) Year ended 7/31/05 $19.74 (0.24)@ 4.41 4.17 -- (1.66) - ---------------------------------------------------------------------------------------------------------------------------------- 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 -- (0.98) Year ended 7/31/05 $19.89 (0.15)@ 4.48 4.33 -- (1.66) - ---------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net istributions Period charge) (000's) Assets - ----------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Institutional Shares Year ended 12/31/00 (0.64) $ 4.91 (1.21%) $ 6,743 1.40% Year ended 12/31/01 --^ $ 6.03 22.90% $ 14,957 1.29% 1/1/02 to 7/31/02(c) -- $ 5.89 (2.32%)* $ 45,538 1.40%** Year ended 7/31/03 (0.05) $ 8.20 40.26% $100,676 1.40% Year ended 7/31/04 (0.52) $10.32 32.84% $155,798 1.33% Year ended 7/31/05 (0.72) $11.00 13.86% $ 98,885 1.35% - ----------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Class A Shares 8/13/01(d)to 12/31/01 -- $ 5.96 0.56%* $ 862 1.59%** 1/1/02 to 7/31/02(c) -- $ 5.82 (2.35%)* $ 5,030 1.66%** Year ended 7/31/03 (0.05) $ 8.08 39.88% $ 18,297 1.65% Year ended 7/31/04 (0.52) $10.14 32.56% $ 41,402 1.58% Year ended 7/31/05 (0.72) $10.78 13.60% $ 29,172 1.60% - ----------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Class B Shares 8/13/01(d)to 12/31/01 -- $ 5.95 0.39%* $ 352 2.31%** 1/1/02 to 7/31/02(c) -- $ 5.79 (2.69%)* $ 2,709 2.42%** Year ended 7/31/03 (0.05) $ 7.97 38.70% $ 4,254 2.40% Year ended 7/31/04 (0.52) $ 9.96 32.13% $ 6,937 1.89% Year ended 7/31/05 (0.72) $10.56 13.54% $ 7,348 1.73% - ----------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Class C Shares 8/13/01(d)to 12/31/01 -- $ 5.96 0.56%* $ 59 2.32%** 1/1/02 to 7/31/02(c) -- $ 5.79 (2.85%)* $ 712 2.42%** Year ended 7/31/03 (0.05) $ 7.97 38.70% $ 1,166 2.40% Year ended 7/31/04 (0.52) $ 9.96 32.13% $ 5,624 1.81% Year ended 7/31/05 (0.72) $10.56 13.54% $ 6,143 1.73% - ----------------------------------------------------------------------------------------------------------------- Micro Cap Value Fund Advisor Shares Year ended 12/31/00 (0.62) $ 4.88 (1.38%) $ 15,424 1.90% Year ended 12/31/01 --^ $ 5.96 22.22% $ 19,196 1.79% 1/1/02 to 7/31/02(c) -- $ 5.81 (2.52%)* $ 18,905 1.90%** Year ended 7/31/03 (0.05) $ 8.05 39.60% $ 25,342 1.90% Year ended 7/31/04 (0.52) $10.09 32.44% $ 41,514 1.68% Year ended 7/31/05 (0.72) $10.71 13.57% $ 36,031 1.64% - ----------------------------------------------------------------------------------------------------------------- Small Cap Value Fund Institutional Shares 4/1/03(d)to 7/31/03 -- $17.54 16.87%* $ 72,783 1.24%** Year ended 7/31/04 (1.00) $20.01 20.11% $107,344 1.25% Year ended 7/31/05 (1.66) $22.82 23.59% $158,505 1.20% - ----------------------------------------------------------------------------------------------------------------- Small Cap Value Fund Class A Shares 4/1/03(d)to 7/31/03 -- $17.52 16.73%* $ 216 1.47%** Year ended 7/31/04 (0.98) $19.95 19.81% $ 2,277 1.49% Year ended 7/31/05 (1.66) $22.68 23.24% $ 2,715 1.45% - ----------------------------------------------------------------------------------------------------------------- Small Cap Value Fund Class B Shares 4/1/03(d)to 7/31/03 -- $17.48 16.47%* $ 103 2.22%** Year ended 7/31/04 (0.98) $19.76 19.02% $ 503 2.24% Year ended 7/31/05 (1.66) $22.29 22.35% $ 1,142 2.19% - ----------------------------------------------------------------------------------------------------------------- Small Cap Value Fund Class C Shares 4/1/03(d)to 7/31/03 -- $17.48 16.47%* $ 15 2.23%** Year ended 7/31/04 (0.98) $19.74 18.85% $ 561 2.24% Year ended 7/31/05 (1.66) $22.25 22.39% $ 927 2.19% - ----------------------------------------------------------------------------------------------------------------- Small Cap Value Fund Advisor Shares 4/1/03(d)to 7/31/03 -- $17.51 16.67%* $ 216 1.72%** Year ended 7/31/04 (0.98) $19.89 19.52% $ 1,606 1.74% Year ended 7/31/05 (1.66) $22.56 23.00% $ 1,979 1.70% - ----------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data ---------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - ---------------------------------------------------------------------------------------------- Micro Cap Value Fund Institutional Shares Year ended 12/31/00 1.03% 1.40% 116% Year ended 12/31/01 0.21% 1.35% 47% 1/1/02 to 7/31/02(c) (0.51%)** 1.68%** 16% Year ended 7/31/03 (0.68%) 1.47% 28% Year ended 7/31/04 (0.25%) 1.33% 23% Year ended 7/31/05 (0.07%) 1.35% 12% - ---------------------------------------------------------------------------------------------- Micro Cap Value Fund Class A Shares 8/13/01(d)to 12/31/01 (0.36%)** 1.78%** 47% 1/1/02 to 7/31/02(c) (0.77%)** 1.95%** 16% Year ended 7/31/03 (0.95%) 1.69% 28% Year ended 7/31/04 (0.49%) 1.58% 23% Year ended 7/31/05 (0.31%) 1.60% 12% - ---------------------------------------------------------------------------------------------- Micro Cap Value Fund Class B Shares 8/13/01(d)to 12/31/01 (1.08%)** 2.52%** 47% 1/1/02 to 7/31/02(c) (1.50%)** 2.72%** 16% Year ended 7/31/03 (1.66%) 2.47% 28% Year ended 7/31/04 (0.81%) 2.33% 23% Year ended 7/31/05 (0.40%) 2.36% 12% - ---------------------------------------------------------------------------------------------- Micro Cap Value Fund Class C Shares 8/13/01(d)to 12/31/01 (0.97%)** 2.57%** 47% 1/1/02 to 7/31/02(c) (1.52%)** 2.73%** 16% Year ended 7/31/03 (1.66%) 2.47% 28% Year ended 7/31/04 (0.82%) 2.33% 23% Year ended 7/31/05 (0.39%) 2.36% 12% - ---------------------------------------------------------------------------------------------- Micro Cap Value Fund Advisor Shares Year ended 12/31/00 0.53% 1.90% 116% Year ended 12/31/01 (0.29%) 1.85% 47% 1/1/02 to 7/31/02(c) (1.02%)** 2.12%** 16% Year ended 7/31/03 (1.15%) 1.97% 28% Year ended 7/31/04 (0.61%) 1.83% 23% Year ended 7/31/05 (0.34%) 1.85% 12% - ---------------------------------------------------------------------------------------------- Small Cap Value Fund Institutional Shares 4/1/03(d)to 7/31/03 0.03%** 1.60%** 39% Year ended 7/31/04 (0.15%) 1.41% 279% Year ended 7/31/05 (0.20%) 1.20% 105% - ---------------------------------------------------------------------------------------------- Small Cap Value Fund Class A Shares 4/1/03(d)to 7/31/03 (0.21%)** 1.86%** 39% Year ended 7/31/04 (0.53%) 1.63% 279% Year ended 7/31/05 (0.48%) 1.45% 105% - ---------------------------------------------------------------------------------------------- Small Cap Value Fund Class B Shares 4/1/03(d)to 7/31/03 (1.07%)** 2.60%** 39% Year ended 7/31/04 (1.26%) 2.38% 279% Year ended 7/31/05 (1.18%) 2.20% 105% - ---------------------------------------------------------------------------------------------- Small Cap Value Fund Class C Shares 4/1/03(d)to 7/31/03 (0.97%)** 2.62%** 39% Year ended 7/31/04 (1.31%) 2.38% 279% Year ended 7/31/05 (1.21%) 2.20% 105% - ---------------------------------------------------------------------------------------------- Small Cap Value Fund Advisor Shares 4/1/03(d)to 7/31/03 (0.51%)** 2.11%** 39% Year ended 7/31/04 (0.79%) 1.88% 279% Year ended 7/31/05 (0.72%) 1.70% 105% - ---------------------------------------------------------------------------------------------- See notes to financial highlights 166 & 167 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 12/31/00 $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 Year ended 7/31/05 $22.58 0.10 4.85 4.95 - -------------------------------------------------------------------------------------------------------------------- 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 Year ended 7/31/05 $22.36 0.04 4.79 4.83 - -------------------------------------------------------------------------------------------------------------------- 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 Year ended 7/31/05 $21.94 (0.14) 4.69 4.55 - -------------------------------------------------------------------------------------------------------------------- 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 Year ended 7/31/05 $21.93 (0.15) 4.69 4.54 - -------------------------------------------------------------------------------------------------------------------- Multi Cap Value Fund Advisor Shares 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 Year ended 7/31/05 $22.29 (0.02) 4.77 4.75 - -------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Fund Institutional Shares 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 Year ended 7/31/05 $13.52 0.18 1.95 2.13 - -------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Fund Class A Shares 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 Year ended 7/31/05 $13.50 0.14 1.94 2.08 - -------------------------------------------------------------------------------------------------------------------- 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 Year ended 7/31/05 $13.61 0.04 1.95 1.99 - -------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Fund Class C Shares 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 Year ended 7/31/05 $13.40 0.03 1.94 1.97 - -------------------------------------------------------------------------------------------------------------------- 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 12/31/00 (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% Year ended 7/31/05 (0.11) (1.38) -- (1.49) $26.04 22.51% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 (0.05) (1.38) -- (1.43) $25.76 22.22% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 -- (1.38) -- (1.38) $25.11 21.33% - ----------------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 -- (1.38) -- (1.38) $25.09 21.24% - ------------------------------------------------------------------------------------------------------------------------------------ Multi Cap Value Fund Advisor Shares - 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% Year ended 7/31/05 (0.01) (1.38) -- (1.39) $25.65 21.90% - ----------------------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Fund Institutional Shares 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% Year ended 7/31/05 (0.18) (0.39) -- (0.57) $15.08 16.07% - ------------------------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Fund Class A Shares 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% Year ended 7/31/05 (0.14) (0.39) -- (0.53) $15.05 15.74% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 (0.04) (0.39) -- (0.43) $15.17 14.85% - ------------------------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Fund Class C Shares 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% Year ended 7/31/05 (0.04) (0.39) -- (0.43) $14.94 14.96% - ------------------------------------------------------------------------------------------------------------------------------------ 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 12/31/00 $ 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% Year ended 7/31/05 $270,131 1.30% 0.41% 1.30% 24% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 $ 39,433 1.55% 0.15% 1.55% 24% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 $ 22,278 2.30% (0.60%) 2.30% 24% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 $ 4,553 2.30% (0.58%) 2.30% 24% - ------------------------------------------------------------------------------------------------------------------------------------ Multi Cap Value Fund Advisor Shares 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% Year ended 7/31/05 $ 42,656 1.80% (0.09%) 1.80% 24% - ------------------------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Fund Institutional Shares 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% Year ended 7/31/05 $574,251 1.07% 1.27% 1.07% 31% - ------------------------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Fund Class A Shares 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% Year ended 7/31/05 $ 24,805 1.32% 1.01% 1.32% 31% - ------------------------------------------------------------------------------------------------------------------------------------ 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% Year ended 7/31/05 $ 5,739 2.07% 0.26% 2.07% 31% - ------------------------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Fund Class C Shares 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% Year ended 7/31/05 $ 2,313 2.07% 0.26% 2.07% 31% - ------------------------------------------------------------------------------------------------------------------------------------ See notes to financial highlights 168 & 169 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 $10.00 0.04# 1.35# 1.39 (0.04) -- Year ended 7/31/04 $11.35 0.14# 1.31# 1.45 (0.13) (0.18) Year ended 7/31/05 $12.49 0.16# 1.94# 2.10 (0.15) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 $10.00 0.02# 1.33# 1.35 (0.02) -- Year ended 7/31/04 $11.33 0.11# 1.30# 1.41 (0.11) (0.18) Year ended 7/31/05 $12.45 0.12# 1.95# 2.07 (0.12) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive Fund(SM) 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 (0.10) (0.18) Year ended 7/31/05 $12.30 0.03# 1.90# 1.93 (0.07) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 $10.00 (0.01)# 1.28# 1.27 (0.01) -- Year ended 7/31/04 $11.26 0.03# 1.28# 1.31 (0.09) (0.18) Year ended 7/31/05 $12.30 0.03# 1.90# 1.93 (0.07) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 $10.00 0.09# 1.58# 1.67 (0.08) -- Year ended 7/31/04 $11.59 0.19# 1.03# 1.22 (0.19) (0.14) Year ended 7/31/05 $12.48 0.22# 1.50# 1.72 (0.21) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 $10.00 0.07# 1.58# 1.65 (0.07) -- Year ended 7/31/04 $11.58 0.16# 1.04# 1.20 (0.17) (0.14) Year ended 7/31/05 $12.47 0.19# 1.49# 1.68 (0.18) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 $10.00 0.02# 1.55# 1.57 (0.02) -- Year ended 7/31/04 $11.55 0.07# 1.03# 1.10 (0.09) (0.14) Year ended 7/31/05 $12.42 0.09# 1.48# 1.57 (0.08) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 $10.00 0.02# 1.55# 1.57 (0.02) -- Year ended 7/31/04 $11.55 0.07# 1.02# 1.09 (0.09) (0.14) Year ended 7/31/05 $12.41 0.09# 1.49# 1.58 (0.08) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 $10.00 0.14# 0.92# 1.06 (0.13) -- Year ended 7/31/04 $10.93 0.21# 0.76# 0.97 (0.21) (0.12) Year ended 7/31/05 $11.57 0.27# 0.97# 1.24 (0.26) (0.03) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 $10.00 0.12# 0.92# 1.04 (0.11) -- Year ended 7/31/04 $10.93 0.19# 0.74# 0.93 (0.18) (0.12) Year ended 7/31/05 $11.56 0.24# 0.96# 1.20 (0.23) (0.03) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 $10.00 0.06# 0.89# 0.95 (0.06) -- Year ended 7/31/04 $10.89 0.12# 0.73# 0.85 (0.11) (0.12) Year ended 7/31/05 $11.51 0.14# 0.97# 1.11 (0.14) (0.03) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 $10.00 0.06# 0.90# 0.96 (0.06) -- Year ended 7/31/04 $10.90 0.12# 0.73# 0.85 (0.12) (0.12) Year ended 7/31/05 $11.51 0.15# 0.96# 1.11 (0.14) (0.03) - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ------------------------------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 (0.04) $11.35 13.92%* $ 32,421 0.08%** Year ended 7/31/04 (0.31) $12.49 12.83% $ 52,085 0.08% Year ended 7/31/05 (0.23) $14.36 16.91% $ 70,072 0.08% - ------------------------------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 (0.02) $11.33 13.57%* $ 10,090 0.33%** Year ended 7/31/04 (0.29) $12.45 12.49% $ 38,249 0.33% Year ended 7/31/05 (0.20) $14.32 16.59% $ 47,172 0.33% - ------------------------------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 -- $11.26 12.65%* $ 3,587 1.08%** Year ended 7/31/04 (0.28) $12.30 11.70% $ 12,106 1.08% Year ended 7/31/05 (0.15) $14.08 15.73% $ 16,203 1.08% - ------------------------------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 (0.01) $11.26 12.74%* $ 532 1.08%** Year ended 7/31/04 (0.27) $12.30 11.67% $ 1,916 1.08% Year ended 7/31/05 (0.15) $14.08 15.80% $ 2,164 1.08% - ------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 (0.08) $11.59 16.78%* $ 62,677 0.08%** Year ended 7/31/04 (0.33) $12.48 10.54% $ 82,264 0.08% Year ended 7/31/05 (0.29) $13.91 13.87% $110,379 0.08% - ------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 (0.07) $11.58 16.51%* $ 33,806 0.33%** Year ended 7/31/04 (0.31) $12.47 10.32% $ 94,739 0.33% Year ended 7/31/05 (0.26) $13.89 13.53% $125,130 0.33% - ------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 (0.02) $11.55 15.70%* $ 12,606 1.08%** Year ended 7/31/04 (0.23) $12.42 9.47% $ 39,636 1.08% Year ended 7/31/05 (0.16) $13.83 12.68% $ 50,000 1.08% - ------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 (0.02) $11.55 15.71%* $ 1,386 1.08%** Year ended 7/31/04 (0.23) $12.41 9.45% $ 8,046 1.08% Year ended 7/31/05 (0.16) $13.83 12.75% $ 9,034 1.08% - ------------------------------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 (0.13) $10.93 10.66%* $ 71,538 0.08%** Year ended 7/31/04 (0.33) $11.57 8.84% $315,055 0.08% Year ended 7/31/05 (0.29) $12.52 10.79% $340,163 0.08% - ------------------------------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 (0.11) $10.93 10.48%* $ 28,991 0.33%** Year ended 7/31/04 (0.30) $11.56 8.53% $ 98,293 0.33% Year ended 7/31/05 (0.26) $12.50 10.43% $106,044 0.33% - ------------------------------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 (0.06) $10.89 9.58%* $ 14,631 1.08%** Year ended 7/31/04 (0.23) $11.51 7.80% $ 36,778 1.08% Year ended 7/31/05 (0.17) $12.45 9.58% $ 44,111 1.08% - ------------------------------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 (0.06) $10.90 9.67%* $ 1,335 1.08%** Year ended 7/31/04 (0.24) $11.51 7.76% $ 7,442 1.08% Year ended 7/31/05 (0.17) $12.45 9.64% $ 7,912 1.08% - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) ---------------------------------------------------- LifeModel Aggressive Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 0.45%** 0.78%** 79% Year ended 7/31/04 1.09% 0.51% 22% Year ended 7/31/05 1.15% 0.47% 35% - ----------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 0.16%** 1.24%** 79% Year ended 7/31/04 0.80% 0.76% 22% Year ended 7/31/05 0.91% 0.72% 35% - ----------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 (0.54%)** 2.06%** 79% Year ended 7/31/04 0.03% 1.51% 22% Year ended 7/31/05 0.15% 1.47% 35% - ----------------------------------------------------------------------------------- LifeModel Aggressive Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 (0.62%)** 2.20%** 79% Year ended 7/31/04 0.06% 1.51% 22% Year ended 7/31/05 0.14% 1.47% 35% - ----------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 1.15%** 0.54%** 55% Year ended 7/31/04 1.56% 0.45% 16% Year ended 7/31/05 1.62% 0.44% 35% - ----------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 0.86%** 0.90%** 55% Year ended 7/31/04 1.32% 0.70% 16% Year ended 7/31/05 1.38% 0.69% 35% - ----------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 0.10%** 1.60%** 55% Year ended 7/31/04 0.53% 1.45% 16% Year ended 7/31/05 0.62% 1.44% 35% - ----------------------------------------------------------------------------------- LifeModel Moderately Aggressive Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 0.06%** 1.61%** 55% Year ended 7/31/04 0.48% 1.45% 16% Year ended 7/31/05 0.62% 1.44% 35% - ----------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 1.82%** 0.52%** 55% Year ended 7/31/04 1.76% 0.43% 14% Year ended 7/31/05 2.17% 0.42% 41% - ----------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 1.52%** 0.84%** 55% Year ended 7/31/04 1.79% 0.68% 14% Year ended 7/31/05 1.92% 0.67% 41% - ----------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 0.74%** 1.63%** 55% Year ended 7/31/04 1.05% 1.43% 14% Year ended 7/31/05 1.17% 1.42% 41% - ----------------------------------------------------------------------------------- LifeModel Moderate Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 0.70%** 1.66%** 55% Year ended 7/31/04 1.04% 1.43% 14% Year ended 7/31/05 1.16% 1.42% 41% - ----------------------------------------------------------------------------------- See notes to financial highlights 170 & 171 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 $10.00 0.18# 0.60# 0.78 (0.16) -- Year ended 7/31/04 $10.62 0.27# 0.51# 0.78 (0.25) (0.20) Year ended 7/31/05 $10.95 0.27# 0.73# 1.00 (0.27) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 $10.00 0.15# 0.59# 0.74 (0.14) -- Year ended 7/31/04 $10.60 0.22# 0.53# 0.75 (0.22) (0.20) Year ended 7/31/05 $10.93 0.25# 0.73# 0.98 (0.24) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 $10.00 0.10# 0.58# 0.68 (0.10) -- Year ended 7/31/04 $10.58 0.14# 0.53# 0.67 (0.15) (0.20) Year ended 7/31/05 $10.90 0.17# 0.72# 0.89 (0.16) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 $10.00 0.09# 0.59# 0.68 (0.09) -- Year ended 7/31/04 $10.59 0.14# 0.52# 0.66 (0.15) (0.20) Year ended 7/31/05 $10.90 0.17# 0.72# 0.89 (0.16) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 $10.00 0.23# 0.52# 0.75 (0.21) -- Year ended 7/31/04 $10.54 0.31# 0.26# 0.57 (0.29) (0.16) Year ended 7/31/05 $10.66 0.31# 0.36# 0.67 (0.32) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 $10.00 0.21# 0.51# 0.72 (0.19) -- Year ended 7/31/04 $10.53 0.26# 0.28# 0.54 (0.27) (0.16) Year ended 7/31/05 $10.64 0.30# 0.34# 0.64 (0.29) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 $10.00 0.16# 0.49# 0.65 (0.15) -- Year ended 7/31/04 $10.50 0.19# 0.27# 0.46 (0.19) (0.16) Year ended 7/31/05 $10.61 0.22# 0.34# 0.56 (0.21) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 $10.00 0.15# 0.50# 0.65 (0.14) -- Year ended 7/31/04 $10.51 0.18# 0.28# 0.46 (0.20) (0.16) Year ended 7/31/05 $10.61 0.23# 0.34# 0.57 (0.21) (0.09) - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 (0.16) $10.62 7.87%* $ 40,412 0.08%** Year ended 7/31/04 (0.45) $10.95 7.39% $ 38,097 0.08% Year ended 7/31/05 (0.36) $11.59 9.24% $ 38,606 0.08% - ------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 (0.14) $10.60 7.51%* $ 19,449 0.33%** Year ended 7/31/04 (0.42) $10.93 7.15% $ 40,851 0.33% Year ended 7/31/05 (0.33) $11.58 8.97% $ 41,446 0.33% - ------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 (0.10) $10.58 6.81%* $ 9,083 1.08%** Year ended 7/31/04 (0.35) $10.90 6.35% $ 21,122 1.08% Year ended 7/31/05 (0.25) $11.54 8.10% $ 22,752 1.08% - ------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 (0.09) $10.59 6.81%* $ 1,017 1.08%** Year ended 7/31/04 (0.35) $10.90 6.29% $ 3,576 1.08% Year ended 7/31/05 (0.25) $11.54 8.18% $ 4,029 1.08% - ------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 (0.21) $10.54 7.58%* $ 16,014 0.08%** Year ended 7/31/04 (0.45) $10.66 5.44% $ 14,201 0.08% Year ended 7/31/05 (0.41) $10.92 6.38% $ 22,236 0.08% - ------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 (0.19) $10.53 7.31%* $ 9,387 0.33%** Year ended 7/31/04 (0.43) $10.64 5.11% $ 20,461 0.33% Year ended 7/31/05 (0.38) $10.90 6.13% $ 20,014 0.33% - ------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 (0.15) $10.50 6.54%* $ 8,795 1.08%** Year ended 7/31/04 (0.35) $10.61 4.37% $ 13,524 1.08% Year ended 7/31/05 (0.30) $10.87 5.34% $ 12,688 1.08% - ------------------------------------------------------------------------------------------------------------ LifeModel Conservative Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 (0.14) $10.51 6.58%* $ 2,203 1.08%** Year ended 7/31/04 (0.36) $10.61 4.34% $ 6,563 1.08% Year ended 7/31/05 (0.30) $10.88 5.30% $ 5,304 1.08% - ------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data --------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - -------------------------------------------------------------------------------------- LifeModel Moderately Conservative Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 2.23%** 0.60%** 72% Year ended 7/31/04 2.33% 0.49% 19% Year ended 7/31/05 2.44% 0.47% 38% - -------------------------------------------------------------------------------------- LifeModel Moderately Conservative Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 1.82%** 1.04%** 72% Year ended 7/31/04 2.09% 0.74% 19% Year ended 7/31/05 2.18% 0.72% 38% - -------------------------------------------------------------------------------------- LifeModel Moderately Conservative Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 1.09%** 1.80%** 72% Year ended 7/31/04 1.31% 1.49% 19% Year ended 7/31/05 1.44% 1.47% 38% - -------------------------------------------------------------------------------------- LifeModel Moderately Conservative Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 1.07%** 1.73%** 72% Year ended 7/31/04 1.26% 1.49% 19% Year ended 7/31/05 1.42% 1.47% 38% - -------------------------------------------------------------------------------------- LifeModel Conservative Fund(SM) Institutional Shares 8/1/02(d)to 7/31/03 2.90%** 0.75%** 63% Year ended 7/31/04 2.79% 0.58% 27% Year ended 7/31/05 3.00% 0.54% 46% - -------------------------------------------------------------------------------------- LifeModel Conservative Fund(SM) Class A Shares 8/1/02(d)to 7/31/03 2.52%** 1.17%** 63% Year ended 7/31/04 2.59% 0.84% 27% Year ended 7/31/05 2.76% 0.79% 46% - -------------------------------------------------------------------------------------- LifeModel Conservative Fund(SM) Class B Shares 8/1/02(d)to 7/31/03 1.75%** 1.86%** 63% Year ended 7/31/04 1.80% 1.58% 27% Year ended 7/31/05 2.01% 1.54% 46% - -------------------------------------------------------------------------------------- LifeModel Conservative Fund(SM) Class C Shares 8/1/02(d)to 7/31/03 1.63%** 1.86%** 63% Year ended 7/31/04 1.81% 1.58% 27% Year ended 7/31/05 2.01% 1.54% 46% - -------------------------------------------------------------------------------------- See notes to financial highlights 172 & 173 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 12/31/00 $ 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 Year ended 7/31/05 $11.15 0.51 0.39 0.90 - -------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Class A Shares 4/1/04(d)to 7/31/04 $11.65 0.17 (0.54) (0.37) Year ended 7/31/05 $11.12 0.49 0.38 0.87 - -------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Class B Shares 4/1/04(d)to 7/31/04 $11.65 0.15 (0.54) (0.39) Year ended 7/31/05 $11.12 0.40 0.39 0.79 - -------------------------------------------------------------------------------------------------------------------- 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 Year ended 7/31/05 $11.05 0.39 0.39 0.78 - -------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Advisor Shares 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 Year ended 7/31/05 $11.12 0.45 0.39 0.84 - -------------------------------------------------------------------------------------------------------------------- Select Stock Fund Institutional Shares 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 Year ended 7/31/05 $19.10 (0.15)@ 2.76 2.61 - -------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class A Shares 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 Year ended 7/31/05 $18.82 (0.19)@ 2.71 2.52 - -------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class B 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 Year ended 7/31/05 $18.51 (0.33)@ 2.65 2.32 - -------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class C Shares 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 Year ended 7/31/05 $18.01 (0.32)@ 2.58 2.26 - -------------------------------------------------------------------------------------------------------------------- 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 12/31/00 (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% Year ended 7/31/05 (0.50) (0.01) -- (0.51) $11.54 8.21% - --------------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Class A Shares 4/1/04(d)to 7/31/04 (0.16) -- -- (0.16) $11.12 (3.15%)* Year ended 7/31/05 (0.47) (0.01) -- (0.48) $11.51 7.96% - --------------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Class B Shares 4/1/04(d)to 7/31/04 (0.14) -- -- (0.14) $11.12 (3.36%)* Year ended 7/31/05 (0.39) (0.01) -- (0.40) $11.51 7.16% - --------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 (0.39) (0.01) -- (0.40) $11.43 7.12% - --------------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Advisor Shares 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% Year ended 7/31/05 (0.45) (0.01) -- (0.46) $11.50 7.70% - --------------------------------------------------------------------------------------------------------------------------- Select Stock Fund Institutional Shares 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% Year ended 7/31/05 -- -- -- -- $21.71 13.66% - --------------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class A Shares 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% Year ended 7/31/05 -- -- -- -- $21.34 13.39% - --------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 -- -- -- -- $20.83 12.53% - --------------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class C Shares 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% Year ended 7/31/05 -- -- -- -- $20.27 12.55% - --------------------------------------------------------------------------------------------------------------------------- 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 12/31/00 $ 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% Year ended 7/31/05 $ 97,921 1.36% 4.47% 1.36% 17% - -------------------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Class A Shares 4/1/04(d)to 7/31/04 $ 954 1.63%** 5.02%** 1.63%** 36% Year ended 7/31/05 $ 4,423 1.62% 4.25% 1.62% 17% - -------------------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Class B Shares 4/1/04(d)to 7/31/04 $ 389 2.37%** 4.27%** 2.37%** 36% Year ended 7/31/05 $ 1,909 2.37% 3.49% 2.37% 17% - -------------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 $ 29,176 2.35% 3.47% 2.35% 17% - -------------------------------------------------------------------------------------------------------------------------------- Strategic Income Fund Advisor Shares 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% Year ended 7/31/05 $ 32,531 1.85% 3.96% 1.85% 17% - -------------------------------------------------------------------------------------------------------------------------------- Select Stock Fund Institutional Shares 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% Year ended 7/31/05 $ 5,973 1.45% (0.73%) 1.99% 28% - -------------------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class A Shares 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% Year ended 7/31/05 $ 7,087 1.70% (0.98%) 2.24% 28% - -------------------------------------------------------------------------------------------------------------------------------- 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% Year ended 7/31/05 $ 311 2.45% (1.73%) 2.97% 28% - -------------------------------------------------------------------------------------------------------------------------------- Select Stock Fund Class C Shares 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% Year ended 7/31/05 $ 516 2.45% (1.73%) 3.00% 28% - -------------------------------------------------------------------------------------------------------------------------------- See notes to financial highlights 174 & 175 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ Technology Fund Institutional Shares Year ended 7/31/01 $19.21 -- (8.68) (8.68) -- (0.16) 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) -- -- Year ended 7/31/05 $ 8.46 (0.13)@ 1.63 1.50 -- -- - ------------------------------------------------------------------------------------------------------------------------------ Technology Fund Class A Shares Year ended 7/31/01 $19.21 -- (8.70) (8.70) -- (0.16) 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) -- -- Year ended 7/31/05 $ 8.38 (0.15)@ 1.60 1.45 -- -- - ------------------------------------------------------------------------------------------------------------------------------ Technology Fund Class B Shares 10/11/00(d)to 7/31/01 $17.28 -- (6.84) (6.84) -- (0.16) 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) -- -- Year ended 7/31/05 $ 8.14 (0.21)@ 1.55 1.34 -- -- - ------------------------------------------------------------------------------------------------------------------------------ Technology Fund Class C Shares Year ended 7/31/01 $19.20 -- (8.80) (8.80) -- (0.16) 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) -- -- Year ended 7/31/05 $ 8.11 (0.20)@ 1.54 1.34 -- -- - ------------------------------------------------------------------------------------------------------------------------------ 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) -- -- Year ended 7/31/05 $ 8.31 (0.17)@ 1.59 1.42 -- -- - ------------------------------------------------------------------------------------------------------------------------------ International Equity Institutional Shares Year ended 7/31/01 $12.70 0.13 (2.17) (2.04) -- (1.62) Year ended 7/31/02 $ 9.04 0.02 (1.30) (1.28) (0.11) -- Year ended 7/31/03 $ 7.65 0.06 0.12 0.18 (0.04) -- Year ended 7/31/04 $ 7.79 0.06@ 1.61 1.67 (0.14) -- Year ended 7/31/05 $ 9.32 0.13 1.54 1.67 (0.20) -- - ------------------------------------------------------------------------------------------------------------------------------ International Equity Class A Shares Year ended 7/31/01 $12.71 0.12 (2.19) (2.07) -- (1.62) Year ended 7/31/02 $ 9.02 (0.04) (1.24) (1.28) (0.10) -- Year ended 7/31/03 $ 7.64 0.07 0.12 0.19 (0.02) -- Year ended 7/31/04 $ 7.81 0.05@ 1.59 1.64 (0.12) -- Year ended 7/31/05 $ 9.33 0.10 1.54 1.64 (0.17) -- - ------------------------------------------------------------------------------------------------------------------------------ International Equity Class B Shares 10/11/00(d)to 7/31/01 $12.09 0.03 (1.44) (1.41) -- (1.62) Year ended 7/31/02 $ 9.06 (0.05) (1.31) (1.36) (0.10) -- Year ended 7/31/03 $ 7.60 --^ 0.11 0.11 -- -- Year ended 7/31/04 $ 7.71 (0.02)@ 1.59 1.57 (0.05) -- Year ended 7/31/05 $ 9.23 0.02 1.52 1.54 (0.11) -- - ------------------------------------------------------------------------------------------------------------------------------ International Equity Class C Shares Year ended 7/31/01 $12.54 0.13 (2.23) (2.10) -- (1.62) Year ended 7/31/02 $ 8.82 (0.08) (1.24) (1.32) (0.10) -- 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 (0.03) -- Year ended 7/31/05 $ 8.99 0.02 1.49 1.51 (0.11) -- - ------------------------------------------------------------------------------------------------------------------------------ International Equity Advisor Shares 11/10/03(d)to 7/31/04 $ 8.67 0.02@ 0.65 0.67 (0.03) -- Year ended 7/31/05 $ 9.31 0.08 1.54 1.62 (0.15) -- - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ----------------------------------------------------------------------------------------------------------------- Technology Fund Institutional Shares Year ended 7/31/01 (0.16) $10.37 (46.65%) $ 45,842 1.50% Year ended 7/31/02 -- $ 5.55 (46.48%) $ 21,183 1.51% Year ended 7/31/03 -- $ 8.72 57.12% $ 29,573 1.55% Year ended 7/31/04 -- $ 8.46 (2.98%) $ 37,573 1.20% Year ended 7/31/05 -- $ 9.96 17.73% $ 38,941 1.63% - ----------------------------------------------------------------------------------------------------------------- Technology Fund Class A Shares Year ended 7/31/01 (0.16) $10.35 (45.62%) $ 5,615 1.76% Year ended 7/31/02 -- $ 5.52 (46.67%) $ 3,256 1.75% Year ended 7/31/03 -- $ 8.66 56.88% $ 5,218 1.81% Year ended 7/31/04 -- $ 8.38 (3.23%) $ 7,105 1.45% Year ended 7/31/05 -- $ 9.83 17.30% $ 5,699 1.87% - ----------------------------------------------------------------------------------------------------------------- Technology Fund Class B Shares 10/11/00(d)to 7/31/01 (0.16) $10.28 (39.95%)* $ 900 2.54%** Year ended 7/31/02 -- $ 5.44 (47.08%) $ 679 2.51% Year ended 7/31/03 -- $ 8.47 55.70% $ 1,164 2.55% Year ended 7/31/04 -- $ 8.14 (3.90%) $ 1,436 2.20% Year ended 7/31/05 -- $ 9.48 16.46% $ 1,160 2.62% - ----------------------------------------------------------------------------------------------------------------- Technology Fund Class C Shares Year ended 7/31/01 (0.16) $10.24 (46.12%) $ 150 2.60% Year ended 7/31/02 -- $ 5.43 (46.97%) $ 96 2.45% Year ended 7/31/03 -- $ 8.44 55.43% $ 1,081 2.47% Year ended 7/31/04 -- $ 8.11 (3.79%) $ 1,757 2.20% Year ended 7/31/05 -- $ 9.45 16.50% $ 590 2.60% - ----------------------------------------------------------------------------------------------------------------- Technology Fund Advisor Shares 10/29/01(d)to 7/31/02 -- $ 5.51 (34.48%)* $ 6 1.95%** Year ended 7/31/03 -- $ 8.61 56.26% $ 55 1.90% Year ended 7/31/04 -- $ 8.31 (3.37%) $ 247 1.71% Year ended 7/31/05 -- $ 9.73 16.95% $ 239 2.12% - ----------------------------------------------------------------------------------------------------------------- International Equity Institutional Shares Year ended 7/31/01 (1.62) $ 9.04 (17.61%) $154,950 1.48% Year ended 7/31/02 (0.11) $ 7.65 (14.30%) $148,593 1.38% Year ended 7/31/03 (0.04) $ 7.79 2.47% $159,160 1.42% Year ended 7/31/04 (0.14) $ 9.32 21.56% $324,852 1.36% Year ended 7/31/05 (0.20) $10.79 17.99% $282,476 1.35% - ----------------------------------------------------------------------------------------------------------------- International Equity Class A Shares Year ended 7/31/01 (1.62) $ 9.02 (17.85%) $ 5,933 1.73% Year ended 7/31/02 (0.10) $ 7.64 (14.23%) $ 4,105 1.62% Year ended 7/31/03 (0.02) $ 7.81 2.52% $ 5,489 1.67% Year ended 7/31/04 (0.12) $ 9.33 21.11% $ 22,999 1.61% Year ended 7/31/05 (0.17) $10.80 17.79% $ 20,509 1.60% - ----------------------------------------------------------------------------------------------------------------- International Equity Class B Shares 10/11/00(d)to 7/31/01 (1.62) $ 9.06 (13.36%)* $ 176 2.43%** Year ended 7/31/02 (0.10) $ 7.60 (15.11%) $ 246 2.38% Year ended 7/31/03 -- $ 7.71 1.45% $ 340 2.42% Year ended 7/31/04 (0.05) $ 9.23 20.43% $ 793 2.36% Year ended 7/31/05 (0.11) $10.66 16.76% $ 1,280 2.35% - ----------------------------------------------------------------------------------------------------------------- International Equity Class C Shares Year ended 7/31/01 (1.62) $ 8.82 (18.39%) $ 163 2.43% Year ended 7/31/02 (0.10) $ 7.40 (15.07%) $ 127 2.38% Year ended 7/31/03 -- $ 7.50 1.35% $ 304 2.39% Year ended 7/31/04 (0.03) $ 8.99 20.32% $ 555 2.36% Year ended 7/31/05 (0.11) $10.39 16.83% $ 962 2.35% - ----------------------------------------------------------------------------------------------------------------- International Equity Advisor Shares 11/10/03(d)to 7/31/04 (0.03) $ 9.31 7.70%* $ 12,360 1.85%** Year ended 7/31/05 (0.15) $10.78 17.43% $ 12,315 1.85% - ----------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - --------------------------------------------------------------------------------------------- Technology Fund Institutional Shares Year ended 7/31/01 (1.24%) 1.50% 50% Year ended 7/31/02 (1.35%) 1.51% 97% Year ended 7/31/03 (1.46%) 1.87% 258% Year ended 7/31/04 (1.07%) 1.55% 191% Year ended 7/31/05 (1.40%) 1.63% 367% - --------------------------------------------------------------------------------------------- Technology Fund Class A Shares Year ended 7/31/01 (1.49%) 1.76% 50% Year ended 7/31/02 (1.59%) 1.75% 97% Year ended 7/31/03 (1.71%) 2.13% 258% Year ended 7/31/04 (1.31%) 1.80% 191% Year ended 7/31/05 (1.64%) 1.87% 367% - --------------------------------------------------------------------------------------------- Technology Fund Class B Shares 10/11/00(d)to 7/31/01 (2.28%)** 2.54%** 50% Year ended 7/31/02 (2.35%) 2.51% 97% Year ended 7/31/03 (2.45%) 2.87% 258% Year ended 7/31/04 (2.06%) 2.56% 191% Year ended 7/31/05 (2.39%) 2.62% 367% - --------------------------------------------------------------------------------------------- Technology Fund Class C Shares Year ended 7/31/01 (2.33%) 2.60% 50% Year ended 7/31/02 (2.29%) 2.45% 97% Year ended 7/31/03 (2.37%) 2.82% 258% Year ended 7/31/04 (2.07%) 2.55% 191% Year ended 7/31/05 (2.37%) 2.60% 367% - --------------------------------------------------------------------------------------------- Technology Fund Advisor Shares 10/29/01(d)to 7/31/02 (1.82%)** 1.95%** 97% Year ended 7/31/03 (1.83%) 2.30% 258% Year ended 7/31/04 (1.58%) 2.04% 191% Year ended 7/31/05 (1.89%) 2.12% 367% - --------------------------------------------------------------------------------------------- International Equity Institutional Shares Year ended 7/31/01 0.98% 1.48% 42% Year ended 7/31/02 0.17% 1.38% 23% Year ended 7/31/03 0.96% 1.45% 44% Year ended 7/31/04 0.61% 1.42% 50% Year ended 7/31/05 1.15% 1.39% 21% - --------------------------------------------------------------------------------------------- International Equity Class A Shares Year ended 7/31/01 0.07% 1.73% 42% Year ended 7/31/02 0.17% 1.62% 23% Year ended 7/31/03 0.88% 1.69% 44% Year ended 7/31/04 0.51% 1.67% 50% Year ended 7/31/05 0.88% 1.64% 21% - --------------------------------------------------------------------------------------------- International Equity Class B Shares 10/11/00(d)to 7/31/01 2.08%** 2.43%** 42% Year ended 7/31/02 (0.79%) 2.38% 23% Year ended 7/31/03 0.01% 2.45% 44% Year ended 7/31/04 (0.21%) 2.42% 50% Year ended 7/31/05 0.23% 2.39% 21% - --------------------------------------------------------------------------------------------- International Equity Class C Shares Year ended 7/31/01 (0.01%) 2.57% 42% Year ended 7/31/02 (0.94%) 2.38% 23% Year ended 7/31/03 0.64% 2.44% 44% Year ended 7/31/04 (0.22%) 2.42% 50% Year ended 7/31/05 0.26% 2.39% 21% - --------------------------------------------------------------------------------------------- International Equity Advisor Shares 11/10/03(d)to 7/31/04 0.31%** 1.92%** 50% Year ended 7/31/05 0.64% 1.89% 21% - --------------------------------------------------------------------------------------------- See notes to financial highlights 176 & 177 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ Bond Fund Institutional Shares Year ended 12/31/00 $ 9.27 0.61 0.45 1.06 (0.61) -- 1/1/01 to 7/31/01(f) $ 9.72 0.28 0.31 0.59 (0.34) -- Year ended 7/31/02 $ 9.97 0.50 (0.01) 0.49 (0.53) -- Year ended 7/31/03 $ 9.93 0.39 0.09 0.48 (0.45) -- Year ended 7/31/04 $ 9.96 0.28 0.14 0.42 (0.36) -- Year ended 7/31/05 $10.02 0.34 0.10 0.44 (0.38) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Bond Fund Class A Shares Year ended 12/31/00 $ 9.25 0.59 0.46 1.05 (0.59) -- 1/1/01 to 7/31/01(f) $ 9.71 0.27 0.30 0.57 (0.33) -- Year ended 7/31/02 $ 9.95 0.51 (0.03) 0.48 (0.51) -- Year ended 7/31/03 $ 9.92 0.37 0.08 0.45 (0.42) -- Year ended 7/31/04 $ 9.95 0.25 0.16 0.41 (0.34) -- Year ended 7/31/05 $10.02 0.30 0.11 0.41 (0.35) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Bond Fund Class B Shares 10/29/01(d)to 7/31/02 $10.13 0.29 (0.17) 0.12 (0.32) -- Year ended 7/31/03 $ 9.93 0.28 0.08 0.36 (0.34) -- Year ended 7/31/04 $ 9.95 0.15 0.18 0.33 (0.26) -- Year ended 7/31/05 $10.02 0.23 0.10 0.33 (0.27) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Bond Fund Class C Shares 10/29/01(d)to 7/31/02 $10.13 0.27 (0.16) 0.11 (0.31) -- Year ended 7/31/03 $ 9.93 0.29 0.08 0.37 (0.34) -- Year ended 7/31/04 $ 9.96 0.17 0.15 0.32 (0.26) -- Year ended 7/31/05 $10.02 0.23 0.10 0.33 (0.27) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Bond Fund Advisor Shares 10/29/01(d)to 7/31/02 $10.13 0.35 (0.19) 0.16 (0.36) -- Year ended 7/31/03 $ 9.93 0.34 0.08 0.42 (0.39) -- Year ended 7/31/04 $ 9.96 0.23 0.14 0.37 (0.31) -- Year ended 7/31/05 $10.02 0.28 0.11 0.39 (0.33) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Bond Fund Institutional Shares Year ended 12/31/00 $ 9.37 0.60 0.29 0.89 (0.60) -- 1/1/01 to 7/31/01(g) $ 9.66 0.25 0.32 0.57 (0.33) -- Year ended 7/31/02 $ 9.90 0.47 0.11 0.58 (0.50) -- Year ended 7/31/03 $ 9.98 0.38 0.10 0.48 (0.42) -- Year ended 7/31/04 $10.04 0.31 (0.04) 0.27 (0.38) -- Year ended 7/31/05 $ 9.93 0.37 (0.08) 0.29 (0.42) -- - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Bond Fund Class A Shares Year ended 12/31/00 $ 9.40 0.57 0.28 0.85 (0.57) -- 1/1/01 to 7/31/01(g) $ 9.68 0.25 0.32 0.57 (0.32) -- Year ended 7/31/02 $ 9.93 0.50 0.06 0.56 (0.48) -- Year ended 7/31/03 $10.01 0.36 0.09 0.45 (0.40) -- Year ended 7/31/04 $10.06 0.29 (0.04) 0.25 (0.36) -- Year ended 7/31/05 $ 9.95 0.34 (0.08) 0.26 (0.39) -- - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Bond Fund Class B Shares 10/29/01(d)to 7/31/02 $10.08 0.29 (0.10) 0.19 (0.31) -- Year ended 7/31/03 $ 9.96 0.29 0.09 0.38 (0.33) -- Year ended 7/31/04 $10.01 0.24 (0.03) 0.21 (0.32) -- Year ended 7/31/05 $ 9.90 0.34 (0.08) 0.26 (0.39) -- - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Bond Fund Class C Shares 10/29/01(d)to 7/31/02 $10.08 0.27 (0.07) 0.20 (0.30) -- Year ended 7/31/03 $ 9.98 0.30 0.08 0.38 (0.33) -- Year ended 7/31/04 $10.03 0.20 (0.03) 0.17 (0.28) -- Year ended 7/31/05 $ 9.92 0.26 (0.07) 0.19 (0.32) -- - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ------------------------------------------------------------------------------------------------------------------- Bond Fund Institutional Shares Year ended 12/31/00 (0.61) $ 9.72 11.91% $295,093 0.82% 1/1/01 to 7/31/01(f) (0.34) $ 9.97 6.19%* $281,795 0.83%** Year ended 7/31/02 (0.53) $ 9.93 5.06% $403,677 0.81% Year ended 7/31/03 (0.45) $ 9.96 4.79% $303,450 0.80% Year ended 7/31/04 (0.36) $10.02 4.26% $277,706 0.79% Year ended 7/31/05 (0.39) $10.07 4.43% $292,043 0.78% - ------------------------------------------------------------------------------------------------------------------- Bond Fund Class A Shares Year ended 12/31/00 (0.59) $ 9.71 11.65% $ 6,663 1.07% 1/1/01 to 7/31/01(f) (0.33) $ 9.95 6.05%* $ 6,190 1.08%** Year ended 7/31/02 (0.51) $ 9.92 4.91% $ 19,949 1.06% Year ended 7/31/03 (0.42) $ 9.95 4.62% $ 20,572 1.05% Year ended 7/31/04 (0.34) $10.02 4.00% $ 22,559 1.04% Year ended 7/31/05 (0.36) $10.07 4.17% $ 15,876 1.03% - ------------------------------------------------------------------------------------------------------------------- Bond Fund Class B Shares 10/29/01(d)to 7/31/02 (0.32) $ 9.93 1.22%* $ 6,857 1.81%** Year ended 7/31/03 (0.34) $ 9.95 3.74% $ 7,418 1.80% Year ended 7/31/04 (0.26) $10.02 3.19% $ 4,512 1.79% Year ended 7/31/05 (0.28) $10.07 3.38% $ 3,907 1.78% - ------------------------------------------------------------------------------------------------------------------- Bond Fund Class C Shares 10/29/01(d)to 7/31/02 (0.31) $ 9.93 1.20%* $ 1,194 1.81%** Year ended 7/31/03 (0.34) $ 9.96 3.75% $ 1,246 1.80% Year ended 7/31/04 (0.26) $10.02 3.20% $ 768 1.79% Year ended 7/31/05 (0.28) $10.07 3.37% $ 649 1.78% - ------------------------------------------------------------------------------------------------------------------- Bond Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.36) $ 9.93 1.69%* $ 723 1.31%** Year ended 7/31/03 (0.39) $ 9.96 4.25% $ 737 1.30% Year ended 7/31/04 (0.31) $10.02 3.73% $ 655 1.29% Year ended 7/31/05 (0.34) $10.07 3.90% $ 622 1.28% - ------------------------------------------------------------------------------------------------------------------- Intermediate Bond Fund Institutional Shares Year ended 12/31/00 (0.60) $ 9.66 9.74% $714,445 0.76% 1/1/01 to 7/31/01(g) (0.33) $ 9.90 6.16%* $663,571 0.78%** Year ended 7/31/02 (0.50) $ 9.98 6.15% $799,642 0.77% Year ended 7/31/03 (0.42) $10.04 4.77% $772,536 0.76% Year ended 7/31/04 (0.38) $ 9.93 2.71% $676,344 0.76% Year ended 7/31/05 (0.42) $ 9.80 2.85% $544,101 0.76% - ------------------------------------------------------------------------------------------------------------------- Intermediate Bond Fund Class A Shares Year ended 12/31/00 (0.57) $ 9.68 9.44% $ 9,130 1.01% 1/1/01 to 7/31/01(g) (0.32) $ 9.93 5.98%* $ 8,467 1.03%** Year ended 7/31/02 (0.48) $10.01 5.78% $ 31,977 1.02% Year ended 7/31/03 (0.40) $10.06 4.52% $ 36,471 1.01% Year ended 7/31/04 (0.36) $ 9.95 2.45% $ 37,500 1.01% Year ended 7/31/05 (0.39) $ 9.82 2.67% $ 29,798 1.01% - ------------------------------------------------------------------------------------------------------------------- Intermediate Bond Fund Class B Shares 10/29/01(d)to 7/31/02 (0.31) $ 9.96 1.92%* $ 2,580 1.77%** Year ended 7/31/03 (0.33) $10.01 3.78% $ 5,564 1.76% Year ended 7/31/04 (0.32) $ 9.90 2.06% $ 3,982 1.46% Year ended 7/31/05 (0.39) $ 9.77 2.58% $ 3,316 1.01% - ------------------------------------------------------------------------------------------------------------------- Intermediate Bond Fund Class C Shares 10/29/01(d)to 7/31/02 (0.30) $ 9.98 2.02%* $ 797 1.77%** Year ended 7/31/03 (0.33) $10.03 3.78% $ 2,319 1.76% Year ended 7/31/04 (0.28) $ 9.92 1.72% $ 1,620 1.76% Year ended 7/31/05 (0.32) $ 9.79 1.91% $ 1,096 1.76% - ------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income/(Loss) Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - ------------------------------------------------------------------------------------------------ Bond Fund Institutional Shares Year ended 12/31/00 6.51% 0.82% 135% 1/1/01 to 7/31/01(f) 4.87%** 0.84%** 131% Year ended 7/31/02 4.74% 0.90% 229% Year ended 7/31/03 3.86% 0.89% 332% Year ended 7/31/04 2.75% 0.90% 389% Year ended 7/31/05 3.28% 0.91% 385% - ------------------------------------------------------------------------------------------------ Bond Fund Class A Shares Year ended 12/31/00 6.27% 1.07% 135% 1/1/01 to 7/31/01(f) 4.61%** 1.09%** 131% Year ended 7/31/02 4.47% 1.16% 229% Year ended 7/31/03 3.57% 1.14% 332% Year ended 7/31/04 2.51% 1.15% 389% Year ended 7/31/05 3.01% 1.16% 385% - ------------------------------------------------------------------------------------------------ Bond Fund Class B Shares 10/29/01(d)to 7/31/02 3.70%** 1.93%** 229% Year ended 7/31/03 2.81% 1.89% 332% Year ended 7/31/04 1.76% 1.90% 389% Year ended 7/31/05 2.27% 1.91% 385% - ------------------------------------------------------------------------------------------------ Bond Fund Class C Shares 10/29/01(d)to 7/31/02 3.68%** 1.92%** 229% Year ended 7/31/03 2.79% 1.89% 332% Year ended 7/31/04 1.76% 1.90% 389% Year ended 7/31/05 2.26% 1.91% 385% - ------------------------------------------------------------------------------------------------ Bond Fund Advisor Shares 10/29/01(d)to 7/31/02 4.21%** 1.46%** 229% Year ended 7/31/03 3.34% 1.39% 332% Year ended 7/31/04 2.25% 1.40% 389% Year ended 7/31/05 2.77% 1.41% 385% - ------------------------------------------------------------------------------------------------ Intermediate Bond Fund Institutional Shares Year ended 12/31/00 6.29% 0.77% 168% 1/1/01 to 7/31/01(g) 4.52%** 0.78%** 141% Year ended 7/31/02 4.53% 0.82% 229% Year ended 7/31/03 3.72% 0.81% 252% Year ended 7/31/04 3.13% 0.81% 189% Year ended 7/31/05 3.69% 0.82% 104% - ------------------------------------------------------------------------------------------------ Intermediate Bond Fund Class A Shares Year ended 12/31/00 6.04% 1.02% 168% 1/1/01 to 7/31/01(g) 4.26%** 1.03%** 141% Year ended 7/31/02 4.25% 1.07% 229% Year ended 7/31/03 3.45% 1.06% 252% Year ended 7/31/04 2.88% 1.07% 189% Year ended 7/31/05 3.43% 1.07% 104% - ------------------------------------------------------------------------------------------------ Intermediate Bond Fund Class B Shares 10/29/01(d)to 7/31/02 3.45%** 1.84%** 229% Year ended 7/31/03 2.64% 1.81% 252% Year ended 7/31/04 2.42% 1.81% 189% Year ended 7/31/05 3.44% 1.82% 104% - ------------------------------------------------------------------------------------------------ Intermediate Bond Fund Class C Shares 10/29/01(d)to 7/31/02 3.48%** 1.84%** 229% Year ended 7/31/03 2.59% 1.81% 252% Year ended 7/31/04 2.12% 1.81% 189% Year ended 7/31/05 2.67% 1.82% 104% - ------------------------------------------------------------------------------------------------ See notes to financial highlights 178 & 179 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ Short Term Bond Fund Institutional Shares Year ended 12/31/00 $ 9.48 0.57 0.18 0.75 (0.57) -- 1/1/01 to 7/31/01(h) $ 9.66 0.26 0.23 0.49 (0.32) -- Year ended 7/31/02 $ 9.83 0.41 0.07 0.48 (0.49) -- Year ended 7/31/03 $ 9.82 0.28 0.03 0.31 (0.38) -- Year ended 7/31/04 $ 9.75 0.19@ (0.06) 0.13 (0.31) -- Year ended 7/31/05 $ 9.57 0.20 (0.08) 0.12 (0.32) -- - ------------------------------------------------------------------------------------------------------------------------------ Short Term Bond Fund Class A Shares Year ended 12/31/00 $ 9.47 0.56 0.18 0.74 (0.56) -- 1/1/01 to 7/31/01(h) $ 9.65 0.23 0.25 0.48 (0.31) -- Year ended 7/31/02 $ 9.82 0.43 0.03 0.46 (0.47) -- Year ended 7/31/03 $ 9.81 0.28 0.02 0.30 (0.37) -- Year ended 7/31/04 $ 9.74 0.18@ (0.07) 0.11 (0.29) -- Year ended 7/31/05 $ 9.56 0.19 (0.09) 0.10 (0.30) -- - ------------------------------------------------------------------------------------------------------------------------------ Short Term Bond Fund Class C Shares 8/1/03 (d)to 7/31/04 $ 9.75 0.09@ (0.06) 0.03 (0.22) -- Year ended 7/31/05 $ 9.56 0.10 (0.08) 0.02 (0.22) -- - ------------------------------------------------------------------------------------------------------------------------------ U.S. Government Bond Fund Institutional Shares Year ended 7/31/01 $ 9.54 0.51 0.52 1.03 (0.51) -- Year ended 7/31/02(i) $10.06 0.41 0.33 0.74 (0.38) -- Year ended 7/31/03 $10.42 0.30 0.03 0.33 (0.30) (0.16) Year ended 7/31/04 $10.29 0.25 --^ 0.25 (0.26) (0.16) Year ended 7/31/05 $10.12 0.30 (0.06) 0.24 (0.28) -- - ------------------------------------------------------------------------------------------------------------------------------ U.S. Government Bond Fund Class A Shares Year ended 7/31/01 $ 9.55 0.50 0.51 1.01 (0.50) -- Year ended 7/31/02(i) $10.06 0.38 0.35 0.73 (0.36) -- Year ended 7/31/03 $10.43 0.27 0.03 0.30 (0.28) (0.16) Year ended 7/31/04 $10.29 0.20 0.03 0.23 (0.23) (0.16) Year ended 7/31/05 $10.13 0.28 (0.06) 0.22 (0.26) -- - ------------------------------------------------------------------------------------------------------------------------------ U.S. Government Bond Fund Class C Shares Year ended 7/31/01 $ 9.52 0.44 0.49 0.93 (0.44) -- Year ended 7/31/02(i) $10.01 0.30 0.34 0.64 (0.29) -- Year ended 7/31/03 $10.36 0.19 0.03 0.22 (0.20) (0.16) Year ended 7/31/04 $10.22 0.15 (0.01) 0.14 (0.15) (0.16) Year ended 7/31/05 $10.05 0.20 (0.06) 0.14 (0.18) -- - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average Distributions Period charge) (000's) Asset - ----------------------------------------------------------------------------------------------------------------- Short Term Bond Fund Institutional Shares Year ended 12/31/00 (0.57) $ 9.66 8.12% $169,790 0.73% 1/1/01 to 7/31/01(h) (0.32) $ 9.83 5.29%* $233,444 0.74%** Year ended 7/31/02 (0.49) $ 9.82 4.96% $304,882 0.74% Year ended 7/31/03 (0.38) $ 9.75 3.23% $490,229 0.74% Year ended 7/31/04 (0.31) $ 9.57 1.31% $495,271 0.74% Year ended 7/31/05 (0.32) $ 9.37 1.16% $333,909 0.73% - ----------------------------------------------------------------------------------------------------------------- Short Term Bond Fund Class A Shares Year ended 12/31/00 (0.56) $ 9.65 7.96% $ 3,505 0.88% 1/1/01 to 7/31/01(h) (0.31) $ 9.82 5.20%* $ 3,340 0.89%** Year ended 7/31/02 (0.47) $ 9.81 4.83% $ 19,019 0.90% Year ended 7/31/03 (0.37) $ 9.74 3.07% $ 33,975 0.89% Year ended 7/31/04 (0.29) $ 9.56 1.12% $ 28,262 0.89% Year ended 7/31/05 (0.30) $ 9.36 1.00% $ 17,117 0.98% - ----------------------------------------------------------------------------------------------------------------- Short Term Bond Fund Class C Shares 8/1/03 (d)to 7/31/04 (0.22) $ 9.56 0.39%* $ 526 1.74%** Year ended 7/31/05 (0.22) $ 9.36 0.23% $ 362 1.73% - ----------------------------------------------------------------------------------------------------------------- U.S. Government Bond Fund Institutional Shares Year ended 7/31/01 (0.51) $10.06 11.10% $ 48,770 0.74% Year ended 7/31/02(i) (0.38) $10.42 7.55% $ 50,809 0.87% Year ended 7/31/03 (0.46) $10.29 3.19% $ 50,649 0.81% Year ended 7/31/04 (0.42) $10.12 2.42% $ 43,820 0.76% Year ended 7/31/05 (0.28) $10.08 2.39% $ 33,246 0.82% - ----------------------------------------------------------------------------------------------------------------- U.S. Government Bond Fund Class A Shares Year ended 7/31/01 (0.50) $10.06 10.76% $ 4,076 0.99% Year ended 7/31/02(i) (0.36) $10.43 7.42% $ 8,436 1.13% Year ended 7/31/03 (0.44) $10.29 2.83% $ 11,413 1.06% Year ended 7/31/04 (0.39) $10.13 2.26% $ 31,146 1.01% Year ended 7/31/05 (0.26) $10.09 2.13% $ 27,214 1.07% - ----------------------------------------------------------------------------------------------------------------- U.S. Government Bond Fund Class C Shares Year ended 7/31/01 (0.44) $10.01 9.98% $ 531 1.71% Year ended 7/31/02(i) (0.29) $10.36 6.53% $ 2,623 1.89% Year ended 7/31/03 (0.36) $10.22 2.12% $ 10,006 1.80% Year ended 7/31/04 (0.31) $10.05 1.41% $ 4,255 1.77% Year ended 7/31/05 (0.18) $10.01 1.39% $ 2,844 1.82% - ----------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - ---------------------------------------------------------------------------------------------- Short Term Bond Fund Institutional Shares Year ended 12/31/00 6.03% 0.74% 73% 1/1/01 to 7/31/01(h) 4.48%** 0.75%** 56% Year ended 7/31/02 4.02% 0.76% 111% Year ended 7/31/03 2.59% 0.76% 72% Year ended 7/31/04 1.96% 0.77% 90% Year ended 7/31/05 2.35% 0.77% 68% - ---------------------------------------------------------------------------------------------- Short Term Bond Fund Class A Shares Year ended 12/31/00 5.88% 0.99% 73% 1/1/01 to 7/31/01(h) 4.22%** 1.00%** 56% Year ended 7/31/02 3.71% 1.01% 111% Year ended 7/31/03 2.39% 1.01% 72% Year ended 7/31/04 1.81% 1.02% 90% Year ended 7/31/05 2.10% 1.02% 68% - ---------------------------------------------------------------------------------------------- Short Term Bond Fund Class C Shares 8/1/03 (d)to 7/31/04 0.97%** 1.77%** 90% Year ended 7/31/05 1.34% 1.77% 68% - ---------------------------------------------------------------------------------------------- U.S. Government Bond Fund Institutional Shares Year ended 7/31/01 5.20% 0.98% 77% Year ended 7/31/02(i) 4.02% 1.02% 180% Year ended 7/31/03 2.88% 0.92% 304% Year ended 7/31/04 2.35% 0.91% 180% Year ended 7/31/05 2.91% 0.97% 100% - ---------------------------------------------------------------------------------------------- U.S. Government Bond Fund Class A Shares Year ended 7/31/01 4.93% 1.24% 77% Year ended 7/31/02(i) 3.70% 1.28% 180% Year ended 7/31/03 2.61% 1.17% 304% Year ended 7/31/04 2.10% 1.16% 180% Year ended 7/31/05 2.67% 1.22% 100% - ---------------------------------------------------------------------------------------------- U.S. Government Bond Fund Class C Shares Year ended 7/31/01 4.17% 2.05% 77% Year ended 7/31/02(i) 2.86% 2.03% 180% Year ended 7/31/03 1.77% 1.91% 304% Year ended 7/31/04 1.34% 1.91% 180% Year ended 7/31/05 1.91% 1.97% 100% - ---------------------------------------------------------------------------------------------- See notes to financial highlights 180 & 181 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ Municipal Bond Fund Institutional Shares Year ended 12/31/00 $ 9.95 0.47 0.73 1.20 (0.47) -- 1/1/01 to 7/31/01(j) $10.68 0.26 0.12 0.38 (0.26) (0.05) Year ended 7/31/02 $10.75 0.43 0.24 0.67 (0.43) (0.25) Year ended 7/31/03 $10.74 0.43@ (0.09) 0.34 (0.43) (0.16) Year ended 7/31/04 $10.49 0.43@ 0.08 0.51 (0.43) (0.17) Year ended 7/31/05 $10.40 0.40 0.06 0.46 (0.40) (0.39) - ------------------------------------------------------------------------------------------------------------------------------ Municipal Bond Fund Class A Shares Year ended 12/31/00 $ 9.98 0.44 0.73 1.17 (0.44) -- 1/1/01 to 7/31/01(j) $10.71 0.26 0.11 0.37 (0.25) (0.05) Year ended 7/31/02 $10.78 0.40 0.25 0.65 (0.41) (0.25) Year ended 7/31/03 $10.77 0.40@ (0.07) 0.33 (0.40) (0.16) Year ended 7/31/04 $10.54 0.40@ 0.06 0.46 (0.40) (0.17) Year ended 7/31/05 $10.43 0.38 0.06 0.44 (0.37) (0.39) - ------------------------------------------------------------------------------------------------------------------------------ Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 $10.87 0.25 0.09 0.34 (0.25) (0.25) Year ended 7/31/03 $10.71 0.32@ (0.07) 0.25 (0.33) (0.16) Year ended 7/31/04 $10.47 0.32@ 0.07 0.39 (0.32) (0.17) Year ended 7/31/05 $10.37 0.29 0.06 0.35 (0.29) (0.39) - ------------------------------------------------------------------------------------------------------------------------------ Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 $10.87 0.25 0.10 0.35 (0.25) (0.25) Year ended 7/31/03 $10.72 0.32@ (0.07) 0.25 (0.33) (0.16) Year ended 7/31/04 $10.48 0.32@ 0.07 0.39 (0.32) (0.17) Year ended 7/31/05 $10.38 0.31 0.04 0.35 (0.29) (0.39) - ------------------------------------------------------------------------------------------------------------------------------ Municipal Bond Fund Advisor Shares 10/29/01(d)to 7/31/02 $10.87 0.28 0.13 0.41 (0.30) (0.25) Year ended 7/31/03 $10.73 0.38@ (0.08) 0.30 (0.38) (0.16) Year ended 7/31/04 $10.49 0.38@ 0.06 0.44 (0.37) (0.17) Year ended 7/31/05 $10.39 0.34 0.06 0.40 (0.34) (0.39) - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Institutional Shares Year ended 12/31/00 $10.20 0.46 0.43 0.89 (0.46) -- 1/1/01 to 7/31/01(k) $10.63 0.27 0.16 0.43 (0.26) (0.02) Year ended 7/31/02 $10.78 0.38 0.25 0.63 (0.38) (0.24) Year ended 7/31/03 $10.79 0.37@ (0.09) 0.28 (0.36) (0.07) Year ended 7/31/04 $10.64 0.37 (0.03) 0.34 (0.36) (0.09) Year ended 7/31/05 $10.53 0.37 (0.07) 0.30 (0.42) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Class A Shares Year ended 12/31/00 $10.20 0.44 0.43 0.87 (0.44) -- 1/1/01 to 7/31/01(k) $10.63 0.25 0.16 0.41 (0.24) (0.02) Year ended 7/31/02 $10.78 0.36 0.24 0.60 (0.35) (0.24) Year ended 7/31/03 $10.79 0.34@ (0.07) 0.27 (0.34) (0.07) Year ended 7/31/04 $10.65 0.34 (0.02) 0.32 (0.34) (0.09) Year ended 7/31/05 $10.54 0.33 (0.07) 0.26 (0.39) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 $10.67 0.21 0.11 0.32 (0.21) -- Year ended 7/31/03 $10.78 0.26@ (0.08) 0.18 (0.26) (0.07) Year ended 7/31/04 $10.63 0.30 (0.03) 0.27 (0.30) (0.09) Year ended 7/31/05 $10.51 0.34 (0.07) 0.27 (0.39) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 $10.67 0.19 0.13 0.32 (0.21) -- Year ended 7/31/03 $10.78 0.26@ (0.08) 0.18 (0.26) (0.07) Year ended 7/31/04 $10.63 0.28 (0.04) 0.24 (0.25) (0.09) Year ended 7/31/05 $10.53 0.24 (0.05) 0.19 (0.31) (0.08) - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ---------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - --------------------------------------------------------------------------------------------------------------- Municipal Bond Fund Institutional Shares Year ended 12/31/00 (0.47) $10.68 12.40% $135,184 0.78% 1/1/01 to 7/31/01(j) (0.31) $10.75 3.66%* $125,382 0.79%** Year ended 7/31/02 (0.68) $10.74 6.57% $104,209 0.79% Year ended 7/31/03 (0.59) $10.49 3.18% $ 74,347 0.79% Year ended 7/31/04 (0.60) $10.40 4.84% $ 57,638 0.79% Year ended 7/31/05 (0.79) $10.07 4.53% $ 49,802 0.78% - --------------------------------------------------------------------------------------------------------------- Municipal Bond Fund Class A Shares Year ended 12/31/00 (0.44) $10.71 11.97% $ 1,479 1.03% 1/1/01 to 7/31/01(j) (0.30) $10.78 3.58%* $ 1,114 1.04%** Year ended 7/31/02 (0.66) $10.77 6.31% $ 1,498 1.04% Year ended 7/31/03 (0.56) $10.54 3.05% $ 1,906 1.04% Year ended 7/31/04 (0.57) $10.43 4.35% $ 2,462 1.04% Year ended 7/31/05 (0.76) $10.11 4.35% $ 1,637 1.03% - --------------------------------------------------------------------------------------------------------------- Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 (0.50) $10.71 3.36%* $ 511 1.80%** Year ended 7/31/03 (0.49) $10.47 2.26% $ 1,205 1.79% Year ended 7/31/04 (0.49) $10.37 3.71% $ 1,528 1.79% Year ended 7/31/05 (0.68) $10.04 3.50% $ 1,479 1.78% - --------------------------------------------------------------------------------------------------------------- Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 (0.50) $10.72 3.42%* $ 210 1.80%** Year ended 7/31/03 (0.49) $10.48 2.31% $ 548 1.79% Year ended 7/31/04 (0.49) $10.38 3.71% $ 363 1.79% Year ended 7/31/05 (0.68) $10.05 3.45% $ 179 1.78% - --------------------------------------------------------------------------------------------------------------- Municipal Bond Fund Advisor Shares 10/29/01(d)to 7/31/02 (0.55) $10.73 3.99%* $ 174 1.30%** Year ended 7/31/03 (0.54) $10.49 2.76% $ 382 1.29% Year ended 7/31/04 (0.54) $10.39 4.22% $ 433 1.29% Year ended 7/31/05 (0.73) $10.06 4.01% $ 378 1.28% - --------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Fund Institutional Shares Year ended 12/31/00 (0.46) $10.63 8.99% $256,926 0.72% 1/1/01 to 7/31/01(k) (0.28) $10.78 4.06%* $237,929 0.74%** Year ended 7/31/02 (0.62) $10.79 6.00% $346,386 0.73% Year ended 7/31/03 (0.43) $10.64 2.64% $304,754 0.73% Year ended 7/31/04 (0.45) $10.53 3.27% $255,026 0.73% Year ended 7/31/05 (0.50) $10.33 2.83% $205,078 0.70% - --------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Fund Class A Shares Year ended 12/31/00 (0.44) $10.63 8.72% $ 2,989 0.97% 1/1/01 to 7/31/01(k) (0.26) $10.78 3.91%* $ 5,204 0.99%** Year ended 7/31/02 (0.59) $10.79 5.74% $ 4,445 0.98% Year ended 7/31/03 (0.41) $10.65 2.48% $ 4,317 0.98% Year ended 7/31/04 (0.43) $10.54 3.03% $ 4,479 0.98% Year ended 7/31/05 (0.47) $10.33 2.44% $ 3,064 0.95% - --------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 (0.21) $10.78 3.02%* $ 303 1.74%** Year ended 7/31/03 (0.33) $10.63 1.67% $ 1,066 1.73% Year ended 7/31/04 (0.39) $10.51 2.54% $ 1,269 1.44% Year ended 7/31/05 (0.47) $10.31 2.54% $ 987 0.95% - --------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 (0.21) $10.78 3.03%* $ 528 1.74%** Year ended 7/31/03 (0.33) $10.63 1.64% $ 973 1.73% Year ended 7/31/04 (0.34) $10.53 2.29% $ 366 1.73% Year ended 7/31/05 (0.39) $10.33 1.76% $ 157 1.69% - --------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - ------------------------------------------------------------------------------------------ Municipal Bond Fund Institutional Shares Year ended 12/31/00 4.61% 0.79% 119% 1/1/01 to 7/31/01(j) 4.21%** 0.81%** 89% Year ended 7/31/02 4.06% 0.89% 97% Year ended 7/31/03 3.98% 0.93% 21% Year ended 7/31/04 4.05% 0.98% 35% Year ended 7/31/05 3.86% 1.04% 27% - ------------------------------------------------------------------------------------------ Municipal Bond Fund Class A Shares Year ended 12/31/00 4.36% 1.04% 119% 1/1/01 to 7/31/01(j) 3.98%** 1.06%** 89% Year ended 7/31/02 3.83% 1.14% 97% Year ended 7/31/03 3.71% 1.18% 21% Year ended 7/31/04 3.81% 1.24% 35% Year ended 7/31/05 3.63% 1.29% 27% - ------------------------------------------------------------------------------------------ Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 3.08%** 1.96%** 97% Year ended 7/31/03 2.97% 1.92% 21% Year ended 7/31/04 3.06% 1.99% 35% Year ended 7/31/05 2.85% 2.04% 27% - ------------------------------------------------------------------------------------------ Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 3.10%** 1.94%** 97% Year ended 7/31/03 2.98% 1.93% 21% Year ended 7/31/04 3.05% 1.98% 35% Year ended 7/31/05 2.91% 2.03% 27% - ------------------------------------------------------------------------------------------ Municipal Bond Fund Advisor Shares 10/29/01(d)to 7/31/02 3.57%** 1.50%** 97% Year ended 7/31/03 3.47% 1.43% 21% Year ended 7/31/04 3.56% 1.49% 35% Year ended 7/31/05 3.36% 1.54% 27% - ------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Institutional Shares Year ended 12/31/00 4.43% 0.73% 59% 1/1/01 to 7/31/01(k) 4.29%** 0.74%** 36% Year ended 7/31/02 3.56% 0.83% 86% Year ended 7/31/03 3.36% 0.83% 85% Year ended 7/31/04 3.42% 0.84% 84% Year ended 7/31/05 3.45% 0.86% 30% - ------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Class A Shares Year ended 12/31/00 4.18% 0.98% 59% 1/1/01 to 7/31/01(k) 3.96%** 1.00%** 36% Year ended 7/31/02 3.32% 1.07% 86% Year ended 7/31/03 3.10% 1.08% 85% Year ended 7/31/04 3.17% 1.09% 84% Year ended 7/31/05 3.20% 1.10% 30% - ------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 2.41%** 1.87%** 86% Year ended 7/31/03 2.35% 1.83% 85% Year ended 7/31/04 2.71% 1.84% 84% Year ended 7/31/05 3.20% 1.86% 30% - ------------------------------------------------------------------------------------------ Intermediate Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 2.08%** 1.87%** 86% Year ended 7/31/03 2.35% 1.83% 85% Year ended 7/31/04 2.42% 1.83% 84% Year ended 7/31/05 2.45% 1.85% 30% - ------------------------------------------------------------------------------------------ See notes to financial highlights 182 & 183 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ------------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Institutional Shares Year ended 7/31/01 $ 9.88 0.41 0.39 0.80 (0.41) -- Year ended 7/31/02(l) $10.27 0.39 0.20 0.59 (0.38) -- Year ended 7/31/03 $10.48 0.37 (0.09) 0.28 (0.37) -- Year ended 7/31/04 $10.39 0.36 0.02 0.38 (0.35) (0.03) Year ended 7/31/05 $10.39 0.36 (0.09) 0.27 (0.35) (0.07) - ------------------------------------------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Class A Shares Year ended 7/31/01 $ 9.89 0.39 0.39 0.78 (0.39) -- Year ended 7/31/02(l) $10.28 0.36 0.19 0.55 (0.35) -- Year ended 7/31/03 $10.48 0.35 (0.10) 0.25 (0.34) -- Year ended 7/31/04 $10.39 0.33 0.03 0.36 (0.33) (0.03) Year ended 7/31/05 $10.39 0.33 (0.08) 0.25 (0.32) (0.07) - ------------------------------------------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Class B Shares 10/11/00(d)to 7/31/01 $ 9.90 0.30 0.20 0.50 (0.30) -- Year ended 7/31/02(l) $10.10 0.28 0.19 0.47 (0.28) -- Year ended 7/31/03 $10.29 0.27 (0.10) 0.17 (0.27) -- Year ended 7/31/04 $10.19 0.24 0.03 0.27 (0.25) (0.03) Year ended 7/31/05 $10.18 0.25 (0.08) 0.17 (0.25) (0.07) - ------------------------------------------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Class C Shares Year ended 7/31/01 $ 9.87 0.33 0.38 0.71 (0.33) -- Year ended 7/31/02(l) $10.25 0.28 0.19 0.47 (0.28) -- Year ended 7/31/03 $10.44 0.26 (0.09) 0.17 (0.26) -- Year ended 7/31/04 $10.35 0.26 0.02 0.28 (0.25) (0.03) Year ended 7/31/05 $10.35 0.25 (0.09) 0.16 (0.24) (0.07) - ------------------------------------------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Institutional Shares Year ended 12/31/00 $ 9.93 0.43 0.18 0.61 (0.43) (0.01) 1/1/01 to 7/31/01(m) $10.10 0.24 0.16 0.40 (0.24) (0.01) Year ended 7/31/02 $10.25 0.38 0.19 0.57 (0.38) (0.05) Year ended 7/31/03 $10.39 0.31 (0.05) 0.26 (0.31) (0.03) Year ended 7/31/04 $10.31 0.28 (0.13) 0.15 (0.28) (0.01) Year ended 7/31/05 $10.17 0.28 (0.13) 0.15 (0.28) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Class A Shares Year ended 12/31/00 $ 9.92 0.41 0.18 0.59 (0.41) (0.01) 1/1/01 to 7/31/01(m) $10.09 0.23 0.16 0.39 (0.23) (0.01) Year ended 7/31/02 $10.24 0.36 0.19 0.55 (0.36) (0.05) Year ended 7/31/03 $10.38 0.30 (0.05) 0.25 (0.30) (0.03) Year ended 7/31/04 $10.30 0.27 (0.13) 0.14 (0.27) (0.01) Year ended 7/31/05 $10.16 0.26 (0.13) 0.13 (0.26) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 $10.35 0.21 0.08 0.29 (0.21) (0.05) Year ended 7/31/03 $10.38 0.21 (0.05) 0.16 (0.21) (0.03) Year ended 7/31/04 $10.30 0.18 (0.13) 0.05 (0.18) (0.01) Year ended 7/31/05 $10.16 0.17 (0.13) 0.04 (0.17) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 $10.35 0.19 0.10 0.29 (0.21) (0.05) Year ended 7/31/03 $10.38 0.21 (0.06) 0.15 (0.21) (0.03) Year ended 7/31/04 $10.29 0.19 (0.13) 0.06 (0.18) (0.01) Year ended 7/31/05 $10.16 0.18 (0.14) 0.04 (0.17) (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data ----------------------------- Ratios of Net Total Net Expenses Total Asset Return Assets, to Dividends Value, (excludes End of Average and End of sales Period Net Distributions Period charge) (000's) Assets - ----------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Fund Institutional Shares Year ended 7/31/01 (0.41) $10.27 8.28% $166,802 0.76% Year ended 7/31/02(l) (0.38) $10.48 5.86% $169,455 0.86% Year ended 7/31/03 (0.37) $10.39 2.65% $151,478 0.77% Year ended 7/31/04 (0.38) $10.39 3.66% $126,343 0.78% Year ended 7/31/05 (0.42) $10.24 2.61% $104,554 0.79% - ----------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Fund Class A Shares Year ended 7/31/01 (0.39) $10.28 8.04% $ 14,516 1.01% Year ended 7/31/02(l) (0.35) $10.48 5.50% $ 18,638 1.11% Year ended 7/31/03 (0.34) $10.39 2.39% $ 25,177 1.02% Year ended 7/31/04 (0.36) $10.39 3.40% $ 26,962 1.03% Year ended 7/31/05 (0.39) $10.25 2.36% $ 27,870 1.04% - ----------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Fund Class B Shares 10/11/00(d)to 7/31/01 (0.30) $10.10 5.17%* $ 898 1.78%** Year ended 7/31/02(l) (0.28) $10.29 4.76% $ 2,732 1.87% Year ended 7/31/03 (0.27) $10.19 1.59% $ 5,101 1.76% Year ended 7/31/04 (0.28) $10.18 2.62% $ 4,714 1.78% Year ended 7/31/05 (0.32) $10.03 1.66% $ 4,279 1.79% - ----------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Fund Class C Shares Year ended 7/31/01 (0.33) $10.25 7.31% $ 1,516 1.72% Year ended 7/31/02(l) (0.28) $10.44 4.71% $ 3,746 1.88% Year ended 7/31/03 (0.26) $10.35 1.65% $ 6,395 1.77% Year ended 7/31/04 (0.28) $10.35 2.65% $ 4,328 1.78% Year ended 7/31/05 (0.31) $10.20 1.60% $ 3,820 1.79% - ----------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Fund Institutional Shares Year ended 12/31/00 (0.44) $10.10 6.31% $ 87,926 0.68% 1/1/01 to 7/31/01(m) (0.25) $10.25 4.01%* $ 80,556 0.69%** Year ended 7/31/02 (0.43) $10.39 5.65% $ 96,269 0.69% Year ended 7/31/03 (0.34) $10.31 2.70% $118,867 0.69% Year ended 7/31/04 (0.29) $10.17 1.43% $105,361 0.69% Year ended 7/31/05 (0.29) $10.03 1.49% $ 74,099 0.68% - ----------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Fund Class A Shares Year ended 12/31/00 (0.42) $10.09 6.05% $ 3,629 0.83% 1/1/01 to 7/31/01(m) (0.24) $10.24 4.02%* $ 3,569 0.84%** Year ended 7/31/02 (0.41) $10.38 5.51% $ 3,575 0.84% Year ended 7/31/03 (0.33) $10.30 2.45% $ 8,006 0.84% Year ended 7/31/04 (0.28) $10.16 1.37% $ 7,294 0.84% Year ended 7/31/05 (0.27) $10.02 1.33% $ 4,713 0.83% - ----------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 (0.26) $10.38 2.82%* $ 374 1.70%** Year ended 7/31/03 (0.24) $10.30 1.70% $ 2,010 1.69% Year ended 7/31/04 (0.19) $10.16 0.43% $ 1,574 1.69% Year ended 7/31/05 (0.18) $10.02 0.46% $ 1,175 1.68% - ----------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 (0.26) $10.38 2.89%* $ 795 1.70%** Year ended 7/31/03 (0.24) $10.29 1.60% $ 3,967 1.69% Year ended 7/31/04 (0.19) $10.16 0.48% $ 1,794 1.69% Year ended 7/31/05 (0.18) $10.02 0.43% $ 449 1.68% - ----------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data -------------------------------------------------- Ratios of Ratios of Net Expenses Investment to Income Average Portfolio to Average Net Turnover Net Assets Assets (a) Rate (b) - -------------------------------------------------------------------------------------------- Ohio Municipal Bond Fund Institutional Shares Year ended 7/31/01 4.09% 0.82% 26% Year ended 7/31/02(l) 3.80% 0.91% 28% Year ended 7/31/03 3.49% 0.85% 20% Year ended 7/31/04 3.39% 0.86% 15% Year ended 7/31/05 3.37% 0.87% 6% - ------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Class A Shares Year ended 7/31/01 3.83% 1.07% 26% Year ended 7/31/02(l) 3.53% 1.17% 28% Year ended 7/31/03 3.23% 1.10% 20% Year ended 7/31/04 3.14% 1.11% 15% Year ended 7/31/05 3.13% 1.12% 6% - ------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Class B Shares 10/11/00(d)to 7/31/01 2.99%** 1.84%** 26% Year ended 7/31/02(l) 2.72% 1.93% 28% Year ended 7/31/03 2.48% 1.84% 20% Year ended 7/31/04 2.39% 1.86% 15% Year ended 7/31/05 2.37% 1.87% 6% - ------------------------------------------------------------------------------------------ Ohio Municipal Bond Fund Class C Shares Year ended 7/31/01 3.12% 1.89% 26% Year ended 7/31/02(l) 2.72% 1.94% 28% Year ended 7/31/03 2.48% 1.85% 20% Year ended 7/31/04 2.39% 1.86% 15% Year ended 7/31/05 2.37% 1.87% 6% - ------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Institutional Shares Year ended 12/31/00 4.17% 0.69% 36% 1/1/01 to 7/31/01(m) 4.00%** 0.71%** 19% Year ended 7/31/02 3.64% 0.78% 25% Year ended 7/31/03 3.02% 0.77% 12% Year ended 7/31/04 2.75% 0.78% 21% Year ended 7/31/05 2.70% 0.80% 3% - ------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Class A Shares Year ended 12/31/00 4.01% 0.94% 36% 1/1/01 to 7/31/01(m) 3.85%** 0.96%** 19% Year ended 7/31/02 3.49% 1.03% 25% Year ended 7/31/03 2.84% 1.02% 12% Year ended 7/31/04 2.60% 1.03% 21% Year ended 7/31/05 2.55% 1.05% 3% - ------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Class B Shares 10/29/01(d)to 7/31/02 2.48%** 1.84%** 25% Year ended 7/31/03 1.95% 1.76% 12% Year ended 7/31/04 1.76% 1.78% 21% Year ended 7/31/05 1.71% 1.80% 3% - ------------------------------------------------------------------------------------------ Michigan Municipal Bond Fund Class C Shares 10/29/01(d)to 7/31/02 2.47%** 1.82%** 25% Year ended 7/31/03 1.97% 1.77% 12% Year ended 7/31/04 1.76% 1.78% 21% Year ended 7/31/05 1.69% 1.80% 3% - ------------------------------------------------------------------------------------------ See notes to financial highlights 184 & 185 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 amortiz- ing 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 amortiz- ing 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 supple- mental 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 amortiz- ing 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 supple- mental 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 supple- mental 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 supple- mental data for periods prior to December 31, 2000 have not been restated to reflect this change in presentation. ^ Amount is less than $0.005 per share. * Not annualized. ** Annualized. # Represents income or gains/(losses) from affiliates. @ Average shares method used in calculation. See notes to financial statements 186 Report of Independent Registered Public Accounting Firm - -------------------------------------------------------------------------------- To the Shareholders and Trustees of Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including schedules of portfolio investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fifth Third Small Cap Growth Fund, Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth Third Large Cap Core Fund, Fifth Third Equity Index Fund, Fifth Third Balanced Fund, Fifth Third Micro Cap Value Fund, Fifth Third Small Cap Value Fund, Fifth Third Multi Cap Value Fund, Fifth Third Disciplined Large Cap Value Fund, Fifth Third LifeModel Aggressive Fund(SM), Fifth Third LifeModel Moderately Aggressive Fund(SM), Fifth Third LifeModel Moderate Fund(SM), Fifth Third LifeModel Moderately Conservative Fund(SM), Fifth Third LifeModel Conservative Fund(SM), Fifth Third Strategic Income Fund, Fifth Third Select Stock Fund, Fifth Third Technology Fund, Fifth Third International Equity Fund, Fifth Third Bond Fund, Fifth Third Intermediate Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third U.S. Government Bond Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate Municipal Bond Fund, Fifth Third Ohio Municipal Bond Fund, and Fifth Third Michigan Municipal Bond Fund (separate portfolios constituting Fifth Third Funds, hereafter referred to as the "Funds") at July 31, 2005, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods in the four years then ended, in conformity with accounting principles generally accepted in the United States of America.These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.The financial highlights of the Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth Third Balanced Fund, Fifth Third Disciplined Large Cap Value Fund, Fifth Third Select Stock Fund, Fifth Third Technology Fund, Fifth Third International Equity Fund, Fifth Third U.S. Government Bond Fund and Fifth Third Ohio Municipal Bond Fund for the periods ended July 31, 2001 and prior were audited by other auditors who have ceased operations.Those independent auditors expressed an unqualified opinion on those statements in their report dated September 7, 2001. The financial highlights of the Fifth Third Small Cap Growth Fund, Fifth Third Large Cap Core Fund, Fifth Third Equity Index Fund, Fifth Third Bond Fund, Fifth Third Intermediate Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate Municipal Bond Fund, and Fifth Third Michigan Municipal Bond Fund for the periods ended July 31, 2001 and prior were audited by other auditors who have ceased operations.Those independent auditors expressed an unqualified opinion on those statements in their report dated September 4, 2001.The financial highlights of Fifth Third Micro Cap Value Fund, Fifth Third Multi Cap Value Fund and Fifth Third Strategic Income Fund for the periods ended December 31, 2001 and prior were audited by other independent auditors.Those independent auditors expressed an unqualified opinion on those statements in their report dated February 22, 2002. PricewaterhouseCoopers LLP Columbus, Ohio September 28, 2005 187 Fifth Third Funds Supplemental Information (unaudited) - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT^ The Trustees and Officers of the Funds, their date of birth, the position they hold with the Funds, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the fund complex that the Trustee oversees and any other directorships held by the Trustee are listed in the two tables immediately following.The business address of the persons listed below is 3435 Stelzer Road, Columbus, Ohio 43219-3035. Independent Trustees -------------------- Number of Portfolios Position(s) Term of in Fund Held Office and Complex Name and with the Length of Principal Occupation(s) Overseen by Other Directorships Date of Birth Funds Time Served During the Past 5 Years Trustee Held by Trustee ------------- ----- ----------- ----------------------- ------- --------------- David J. Durham Trustee Indefinite, President and Chief 35 None Date of Birth: 5/10/1945 June 2001- Executive Officer of Clipper Present Products, Inc., a wholesale distributor, 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, Vice President and Chief 35 Trustee for Hanover Date of Birth: 9/11/1949 March 2001- Communications Officer, College, National Present Cinergy Corp., September Underground Freedom 2004-Present. President, Center, The Cincinnati Cinergy Foundation, Zoo, The Ohio Arts November 2001-Present. Council, The Cincinnati President, Cinergy Corp., Parks Foundation and Cincinnati Gas & Electric Co., Playhouse in the Park. The Union Light Heat & Power Co., July 2000-October 2001. Vice President, Corporate Communications,August 1996- June 2000. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 35 Printing Date of Birth: 12/5/1944 October 2001- Present. Business Industries of Present Management Consultant,April America:Web Offset 2000-February 2002. President, Assoc., Director; Master Metroweb Corp. (publications Printers of America, printing) 1997-2000. Director. David J. Gruber Trustee Indefinite, Resources Global Professionals, 35 None Date of Birth: 8/19/1963 December 2003- Project Professional, December Present 2004-Present. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO,April 2003- December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director, April 1996-March 2003. Interested Trustee ------------------ Edward Burke Carey* Chairman Indefinite, Carey Realty Investments, Inc. 35 The Foundation of the Date of Birth: 7/2/1945 -Board January 1989- (real estate development and Catholic Diocese of of Trustees Present consulting), President, 1990-Present. Columbus-Trustee Canisius College-Trustee - ------------------------ ^ Additional disclosures can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. * Mr. Carey is treated by the Funds as an "interested person" (as defined in Section 2(a)(19) of the 1940 Act) of the Funds and the Investment Advisor. Mr. Carey is an "interested person" because of his past business transactions with Fifth Third Bank and its affiliates. 188 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Officers -------- Name and Position(s) Held Term of Office and Principal Occupation(s) Date of Birth with the Funds Length of Time Served During the Past 5 Years ------------- -------------- --------------------- ----------------------- Bryan C. Haft President Indefinite, Employee of BISYS Fund Date of Birth: 1/23/65 June 2005- Services Limited Partnership Present since 1992. Russell D. Ungerman Vice President Indefinite, Assistant Vice President of Fifth Date of Birth: 2/9/1971 September 2002- Third Bank since 1998. Present Rodney L. Ruehle Anti-Money Laundering Indefinite, Employee of BISYS Fund Date of Birth: 4/26/1968 and Chief Compliance Officer September 2001- Services Limited Partnership Present since August 1995. Alaina Metz Assistant Secretary Indefinite, Employee of BISYS Fund Date of Birth: 4/4/1967 September 2004- Services Limited Partnership Present since 1995. Steven D. Pierce Treasurer Indefinite, Employee of BISYS Fund Date of Birth: 11/12/1965 March 2005- Services Limited Partnership Present since April 1999. Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund Date of Birth: 2/13/1962 and Assistant Treasurer September 2001- Services Limited Partnership Present since May 1995. 189 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- ADDITIONAL TAX INFORMATION For the taxable year ended July 31, 2005, the following percentage of income dividends paid by the Fund qualify for the dividends received deduction available to corporations: Percentage ---------- Quality Growth Fund 100% Large Cap Core Fund 100% Equity Index Fund 100% Balanced Fund 80% Micro Cap Value Fund 26% Small Cap Value Fund 6% Multi Cap Value Fund 100% Disciplined Large Cap Value Fund 83% LifeModel Aggressive Fund(SM) 46% LifeModel Moderately Aggressive Fund(SM) 21% LifeModel Moderate Fund(SM) 12% LifeModel Moderately Conservative Fund(SM) 10% LifeModel Conservative Fund(SM) 4% Strategic Income Fund 37% For the period ended July 31, 2005, certain dividends paid by the Funds are subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003.The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2005 Form 1099-DIV. For the period ended July 31, 2005, the following Funds paid qualified dividend income of (Amounts in thousands): Amount ------ Quality Growth Fund $2,218 Large Cap Core Fund 1,286 Equity Index Fund 8,379 Balanced Fund 2,347 Micro Cap Value Fund 893 Small Cap Value Fund 399 Multi Cap Value Fund 1,673 Disciplined Large Cap Value Fund 8,901 LifeModel Aggressive Fund(SM) 526 LifeModel Moderately Aggressive Fund(SM) 755 LifeModel Moderate Fund(SM) 1,175 LifeModel Moderately Conservative Fund(SM) 230 LifeModel Conservative Fund(SM) 82 Strategic Income Fund 6,341 International Equity Fund 7,950 The International Equity Fund may elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per outstanding share on July 31, 2005 are as follows: Foreign Foreign Source Tax Income Expense -------- -------- International Equity Fund $0.29 $0.02 If elected, the pass-through of the foreign tax credit will only affect those persons who are shareholders on the dividend record date in December 2005.These shareholders will receive more detailed information along with their 2005 Form 1099-DIV. 190 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; and (2) ongoing costs, including management fees; distribution and/or service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fifth Third Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2005 through July 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 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ------ ------- ---------------- ---------------- Small Cap Growth Fund Institutional Shares $1,000.00 $1,086.50 $ 5.28 1.02% Class A Shares 1,000.00 1,085.10 6.57 1.27% Class B Shares 1,000.00 1,080.80 10.42 2.02% Class C Shares 1,000.00 1,080.70 10.42 2.02% Advisor Shares 1,000.00 1,083.30 7.85 1.52% Mid Cap Growth Fund Institutional Shares 1,000.00 1,113.20 5.71 1.09% Class A Shares 1,000.00 1,112.00 7.02 1.34% Class B Shares 1,000.00 1,108.20 10.92 2.09% Class C Shares 1,000.00 1,107.70 10.92 2.09% Advisor Shares 1,000.00 1,110.60 8.32 1.59% Quality Growth Fund Institutional Shares 1,000.00 1,085.70 5.69 1.10% Class A Shares 1,000.00 1,084.40 6.98 1.35% Class B Shares 1,000.00 1,080.20 10.83 2.10% Class C Shares 1,000.00 1,080.20 10.83 2.10% Advisor Shares 1,000.00 1,083.10 8.21 1.59% Large Cap Core Fund Institutional Shares 1,000.00 1,055.20 4.69 0.92% Class A Shares 1,000.00 1,053.90 5.96 1.17% Class B Shares 1,000.00 1,049.40 9.76 1.92% Class C Shares 1,000.00 1,049.30 9.76 1.92% Equity Index Fund Institutional Shares 1,000.00 1,053.40 0.97 0.19% Class A Shares 1,000.00 1,052.30 2.24 0.44% Class B Shares 1,000.00 1,048.80 6.05 1.19% Class C Shares 1,000.00 1,048.70 6.04 1.19% Advisor Shares 1,000.00 1,050.70 3.51 0.69% Select Shares 1,000.00 1,053.10 1.37 0.27% Preferred Shares 1,000.00 1,052.70 1.73 0.34% Trust Shares 1,000.00 1,052.20 2.24 0.44% Balanced Fund Institutional Shares 1,000.00 1,022.00 5.11 1.02% Class A Shares 1,000.00 1,020.80 6.36 1.27% Class B Shares 1,000.00 1,017.30 10.10 2.02% Class C Shares 1,000.00 1,017.30 10.10 2.02% Advisor Shares 1,000.00 1,019.60 7.61 1.52% Micro Cap Value Fund Institutional Shares 1,000.00 1,009.20 6.87 1.38% Class A Shares 1,000.00 1,007.50 8.11 1.63% Class B Shares 1,000.00 1,007.60 9.36 1.88% Class C Shares 1,000.00 1,007.60 9.41 1.89% Advisor Shares 1,000.00 1,007.50 8.51 1.71% - -------------- * 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. 191 Fifth Third Funds Supplemental Information (Unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ------ ------- ---------------- ---------------- Small Cap Value Fund Institutional Shares $1,000.00 $1,141.60 $ 6.16 1.16% Class A Shares 1,000.00 1,140.30 7.48 1.41% Class B Shares 1,000.00 1,136.10 11.39 2.15% Class C Shares 1,000.00 1,136.30 11.39 2.15% Advisor Shares 1,000.00 1,138.80 8.80 1.66% Multi Cap Value Fund Institutional Shares 1,000.00 1,091.10 6.74 1.30% Class A Shares 1,000.00 1,089.90 8.03 1.55% Class B Shares 1,000.00 1,086.00 11.90 2.30% Class C Shares 1,000.00 1,085.70 11.89 2.30% Advisor Shares 1,000.00 1,089.00 9.32 1.80% Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,078.70 5.57 1.08% Class A Shares 1,000.00 1,077.50 6.85 1.33% Class B Shares 1,000.00 1,073.00 10.69 2.08% Class C Shares 1,000.00 1,073.50 10.69 2.08% LifeModel Aggressive Fund(SM) Institutional Shares 1,000.00 1,083.30 0.41 0.08% Class A Shares 1,000.00 1,081.50 1.70 0.33% Class B Shares 1,000.00 1,077.30 5.56 1.08% Class C Shares 1,000.00 1,078.00 5.56 1.08% LifeModel Moderately Aggressive Fund(SM) Institutional Shares 1,000.00 1,066.60 0.41 0.08% Class A Shares 1,000.00 1,065.50 1.69 0.33% Class B Shares 1,000.00 1,061.10 5.52 1.08% Class C Shares 1,000.00 1,061.80 5.52 1.08% LifeModel Moderate Fund(SM) Institutional Shares 1,000.00 1,051.40 0.41 0.08% Class A Shares 1,000.00 1,050.10 1.68 0.33% Class B Shares 1,000.00 1,045.60 5.48 1.08% Class C Shares 1,000.00 1,046.40 5.48 1.08% LifeModel Moderately Conservative Fund(SM) Institutional Shares 1,000.00 1,042.50 0.41 0.08% Class A Shares 1,000.00 1,041.20 1.67 0.33% Class B Shares 1,000.00 1,037.40 5.46 1.08% Class C Shares 1,000.00 1,037.40 5.46 1.08% LifeModel Conservative Fund(SM) Institutional Shares 1,000.00 1,027.60 0.40 0.08% Class A Shares 1,000.00 1,026.30 1.66 0.33% Class B Shares 1,000.00 1,022.60 5.42 1.08% Class C Shares 1,000.00 1,022.30 5.42 1.08% Strategic Income Fund Institutional Shares 1,000.00 1,023.80 6.87 1.37% Class A Shares 1,000.00 1,022.60 8.12 1.62% Class B Shares 1,000.00 1,018.90 11.86 2.37% Class C Shares 1,000.00 1,019.00 11.86 2.37% Advisor Shares 1,000.00 1,021.40 9.37 1.87% Dividend Growth Fund Institutional Shares 1,000.00 1,076.40 7.47 1.45% Class A Shares 1,000.00 1,075.60 8.75 1.70% Class B Shares 1,000.00 1,071.50 12.58 2.45% Class C Shares 1,000.00 1,071.40 12.58 2.45% Technology Fund Institutional Shares 1,000.00 1,082.60 8.68 1.68% Class A Shares 1,000.00 1,081.40 9.96 1.93% Class B Shares 1,000.00 1,077.30 13.80 2.68% Class C Shares 1,000.00 1,078.70 13.71 2.66% Advisor Shares 1,000.00 1,079.90 11.19 2.17% International Equity Fund Institutional Shares 1,000.00 1,028.60 6.79 1.35% Class A Shares 1,000.00 1,027.60 8.04 1.60% Class B Shares 1,000.00 1,023.00 11.79 2.35% Class C Shares 1,000.00 1,023.60 11.79 2.35% Advisor Shares 1,000.00 1,026.70 9.30 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. 192 Fifth Third Funds Supplemental Information (Unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ------ ------- ---------------- ---------------- Bond Fund Institutional Shares $1,000.00 $1,007.10 $3.88 0.78% Class A Shares 1,000.00 1,006.80 5.13 1.03% Class B Shares 1,000.00 1,003.00 8.84 1.78% Class C Shares 1,000.00 1,002.90 8.84 1.78% Advisor Shares 1,000.00 1,005.40 6.36 1.28% Intermediate Bond Fund Institutional Shares 1,000.00 1,004.30 3.78 0.76% Class A Shares 1,000.00 1,003.10 5.02 1.01% Class B Shares 1,000.00 1,003.10 5.02 1.01% Class C Shares 1,000.00 1,000.20 8.73 1.76% Short Term Bond Fund Institutional Shares 1,000.00 1,005.40 3.63 0.73% Class A Shares 1,000.00 1,005.20 4.87 0.98% Class C Shares 1,000.00 1,001.20 8.58 1.73% U.S. Government Bond Fund Institutional Shares 1,000.00 1,005.30 4.28 0.86% Class A Shares 1,000.00 1,004.10 5.52 1.11% Class C Shares 1,000.00 1,000.40 9.23 1.86% Municipal Bond Fund Institutional Shares 1,000.00 1,007.50 3.83 0.77% Class A Shares 1,000.00 1,006.20 5.07 1.02% Class B Shares 1,000.00 1,002.60 8.79 1.77% Class C Shares 1,000.00 1,002.10 8.79 1.77% Advisor Shares 1,000.00 1,004.90 6.31 1.27% Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,003.50 3.58 0.72% Class A Shares 1,000.00 1,002.00 4.81 0.97% Class B Shares 1,000.00 1,002.00 4.81 0.97% Class C Shares 1,000.00 998.30 8.52 1.72% Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,002.20 3.97 0.80% Class A Shares 1,000.00 1,001.00 5.21 1.05% Class B Shares 1,000.00 998.40 8.92 1.80% Class C Shares 1,000.00 997.40 8.91 1.80% Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,002.10 3.38 0.68% Class A Shares 1,000.00 1,001.20 4.12 0.83% Class B Shares 1,000.00 996.90 8.32 1.68% Class C Shares 1,000.00 996.70 8.32 1.68% - ------------------- * 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. 193 Fifth Third Funds Supplemental Information (Unaudited), continued - -------------------------------------------------------------------------------- Hypothetical Example for Comparison Purposes The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. However, you may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ------ ------- ---------------- ---------------- Small Cap Growth Fund Institutional Shares $1,000.00 $1,019.74 $ 5.11 1.02% Class A Shares 1,000.00 1,018.50 6.36 1.27% Class B Shares 1,000.00 1,014.78 10.09 2.02% Class C Shares 1,000.00 1,014.78 10.09 2.02% Advisor Shares 1,000.00 1,017.26 7.60 1.52% Mid Cap Growth Fund Institutional Shares 1,000.00 1,019.39 5.46 1.09% Class A Shares 1,000.00 1,018.15 6.71 1.34% Class B Shares 1,000.00 1,014.43 10.44 2.09% Class C Shares 1,000.00 1,014.43 10.44 2.09% Advisor Shares 1,000.00 1,016.91 7.95 1.59% Quality Growth Fund Institutional Shares 1,000.00 1,019.34 5.51 1.10% Class A Shares 1,000.00 1,018.10 6.76 1.35% Class B Shares 1,000.00 1,014.38 10.49 2.10% Class C Shares 1,000.00 1,014.38 10.49 2.10% Advisor Shares 1,000.00 1,016.91 7.95 1.59% Large Cap Core Fund Institutional Shares 1,000.00 1,020.23 4.61 0.92% Class A Shares 1,000.00 1,018.99 5.86 1.17% Class B Shares 1,000.00 1,015.27 9.59 1.92% Class C Shares 1,000.00 1,015.27 9.59 1.92% Equity Index Fund Institutional Shares 1,000.00 1,023.85 0.95 0.19% Class A Shares 1,000.00 1,022.61 2.21 0.44% Class B Shares 1,000.00 1,018.89 5.96 1.19% Class C Shares 1,000.00 1,018.89 5.96 1.19% Advisor Shares 1,000.00 1,021.37 3.46 0.69% Select Shares 1,000.00 1,023.46 1.35 0.27% Preferred Shares 1,000.00 1,023.11 1.71 0.34% Trust Shares 1,000.00 1,022.61 2.21 0.44% Balanced Fund Institutional Shares 1,000.00 1,019.74 5.11 1.02% Class A Shares 1,000.00 1,018.50 6.36 1.27% Class B Shares 1,000.00 1,014.78 10.09 2.02% Class C Shares 1,000.00 1,014.78 10.09 2.02% Advisor Shares 1,000.00 1,017.26 7.60 1.52% Micro Cap Value Fund Institutional Shares 1,000.00 1,017.95 6.90 1.38% Class A Shares 1,000.00 1,016.71 8.15 1.63% Class B Shares 1,000.00 1,015.47 9.39 1.88% Class C Shares 1,000.00 1,015.42 9.44 1.89% Advisor Shares 1,000.00 1,016.31 8.55 1.71% - ------------------- * 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. 194 Fifth Third Funds Supplemental Information (Unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ------ ------- ---------------- ---------------- Small Cap Value Fund Institutional Shares $1,000.00 $1,019.04 $ 5.81 1.16% Class A Shares 1,000.00 1,017.80 7.05 1.41% Class B Shares 1,000.00 1,014.13 10.74 2.15% Class C Shares 1,000.00 1,014.13 10.74 2.15% Advisor Shares 1,000.00 1,016.56 8.30 1.66% Multi Cap Value Fund Institutional Shares 1,000.00 1,018.35 6.51 1.30% Class A Shares 1,000.00 1,017.11 7.75 1.55% Class B Shares 1,000.00 1,013.39 11.48 2.30% Class C Shares 1,000.00 1,013.39 11.48 2.30% Advisor Shares 1,000.00 1,015.87 9.00 1.80% Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,019.44 5.41 1.08% Class A Shares 1,000.00 1,018.20 6.66 1.33% Class B Shares 1,000.00 1,014.48 10.39 2.08% Class C Shares 1,000.00 1,014.48 10.39 2.08% LifeModel Aggressive Fund(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.16 1.66 0.33% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% LifeModel Moderately Aggressive Fund(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.16 1.66 0.33% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% LifeModel Moderate Fund(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.16 1.66 0.33% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% LifeModel Moderately Conservative Fund(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.16 1.66 0.33% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% LifeModel Conservative Fund(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.16 1.66 0.33% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% Strategic Income Fund Institutional Shares 1,000.00 1,018.00 6.85 1.37% Class A Shares 1,000.00 1,016.76 8.10 1.62% Class B Shares 1,000.00 1,013.04 11.83 2.37% Class C Shares 1,000.00 1,013.04 11.83 2.37% Advisor Shares 1,000.00 1,015.52 9.35 1.87% Dividend Growth Fund Institutional Shares 1,000.00 1,017.60 7.25 1.45% Class A Shares 1,000.00 1,016.36 8.50 1.70% Class B Shares 1,000.00 1,012.65 12.23 2.45% Class C Shares 1,000.00 1,012.65 12.23 2.45% Technology Fund Institutional Shares 1,000.00 1,016.46 8.40 1.68% Class A Shares 1,000.00 1,015.22 9.64 1.93% Class B Shares 1,000.00 1,011.50 13.37 2.68% Class C Shares 1,000.00 1,011.60 13.27 2.66% Advisor Shares 1,000.00 1,014.03 10.84 2.17% International Equity Fund Institutional Shares 1,000.00 1,018.10 6.76 1.35% Class A Shares 1,000.00 1,016.86 8.00 1.60% Class B Shares 1,000.00 1,013.14 11.73 2.35% Class C Shares 1,000.00 1,013.14 11.73 2.35% Advisor Shares 1,000.00 1,015.62 9.25 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. 195 Fifth Third Funds Supplemental Information (Unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/05 7/31/05 2/1/05 - 7/31/05 2/1/05 - 7/31/05 ------ ------- ---------------- ---------------- Bond Fund Institutional Shares $1,000.00 $1,020.93 $3.91 0.78% Class A Shares 1,000.00 1,019.69 5.16 1.03% Class B Shares 1,000.00 1,015.97 8.90 1.78% Class C Shares 1,000.00 1,015.97 8.90 1.78% Advisor Shares 1,000.00 1,018.45 6.41 1.28% Intermediate Bond Fund Institutional Shares 1,000.00 1,021.03 3.81 0.76% Class A Shares 1,000.00 1,019.79 5.06 1.01% Class B Shares 1,000.00 1,019.79 5.06 1.01% Class C Shares 1,000.00 1,016.07 8.80 1.76% Short Term Bond Fund Institutional Shares 1,000.00 1,021.17 3.66 0.73% Class A Shares 1,000.00 1,019.93 4.91 0.98% Class C Shares 1,000.00 1,016.22 8.65 1.73% U.S. Government Bond Fund Institutional Shares 1,000.00 1,020.53 4.31 0.86% Class A Shares 1,000.00 1,019.29 5.56 1.11% Class C Shares 1,000.00 1,015.57 9.30 1.86% Municipal Bond Fund Institutional Shares 1,000.00 1,020.98 3.86 0.77% Class A Shares 1,000.00 1,019.74 5.11 1.02% Class B Shares 1,000.00 1,016.02 8.85 1.77% Class C Shares 1,000.00 1,016.02 8.85 1.77% Advisor Shares 1,000.00 1,018.50 6.36 1.27% Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,021.22 3.61 0.72% Class A Shares 1,000.00 1,019.98 4.86 0.97% Class B Shares 1,000.00 1,019.98 4.86 0.97% Class C Shares 1,000.00 1,016.27 8.60 1.72% Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,020.83 4.01 0.80% Class A Shares 1,000.00 1,019.59 5.26 1.05% Class B Shares 1,000.00 1,015.87 9.00 1.80% Class C Shares 1,000.00 1,015.87 9.00 1.80% Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,021.42 3.41 0.68% Class A Shares 1,000.00 1,020.68 4.16 0.83% Class B Shares 1,000.00 1,016.46 8.40 1.68% Class C Shares 1,000.00 1,016.46 8.40 1.68% - ------------- * 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. 196 Addresses - -------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds Stock and Bond Mutual Funds 3435 Stelzer Road Columbus, Ohio 43219 - -------------------------------------------------------------------------------------------------- Investment Advisor Fifth Third Asset Management, Inc. 38 Fountain Square Plaza Cincinnati, Ohio 45263 - -------------------------------------------------------------------------------------------------- Sub-Advisor (International Equity Fund only) Morgan Stanley Investment Management, Inc. 1221 Avenue of the Americas New York, New York 10020 - -------------------------------------------------------------------------------------------------- Distributor Fifth Third Funds Distributor, Inc. 3435 Stelzer Road Columbus, Ohio 43219 - -------------------------------------------------------------------------------------------------- Administrator, 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 - -------------------------------------------------------------------------------------------------- Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP 100 East Broad Street Suite 2100 Columbus, Ohio 43215 - -------------------------------------------------------------------------------------------------- [LOGO] Fifth Third Funds 9/05 AR-STBD-05 ITEM 2. CODE OF ETHICS. (a) THE REGISTRANT HAS ADOPTED A CODE OF ETHICS THAT APPLIES TO THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR FUNCTIONS. THIS CODE OF ETHICS IS INCLUDED AS AN EXHIBIT. (b) 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. 3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT COMMITTEE. 3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS DAVID J. GRUBER, WHO IS "INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) AUDIT FEES ---------- 2004 - $290,600 2005 - $270,600 (b) AUDIT-RELATED FEES ------------------ 2004 - $0 2005 - $21,000 (c) TAX FEES -------- 2004 - $109,400 2005 - $91,200 (d) ALL OTHER FEES -------------- 2004 - $0 2005 - $0 AUDIT AND NON-AUDIT SERVICES PRE-APPROVAL POLICIES AND PROCEDURES I. PURPOSE UNDER THE SARBANES-OXLEY ACT OF 2002 (THE "ACT"), THE AUDIT COMMITTEE (THE "COMMITTEE") OF THE BOARD OF TRUSTEES OF FIFTH THIRD FUNDS (THE "TRUST") IS RESPONSIBLE FOR THE APPOINTMENT, COMPENSATION AND OVERSIGHT OF THE WORK OF THE TRUST'S INDEPENDENT AUDITOR. AS PART OF THIS RESPONSIBILITY, THE COMMITTEE IS REQUIRED TO GRANT APPROVAL FOR AUDIT AND NON-AUDIT SERVICES PERFORMED BY THE INDEPENDENT AUDITOR FOR THE TRUST IN ORDER ASSURE THAT THEY DO NOT IMPAIR THE AUDITOR'S INDEPENDENCE FROM THE TRUST. TO IMPLEMENT THESE PROVISIONS OF THE ACT, THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") HAS ISSUED RULES SPECIFYING THE TYPES OF SERVICES THAT THE TRUST'S INDEPENDENT AUDITOR MAY NOT PROVIDE TO THE TRUST, AS WELL AS THE COMMITTEE'S ADMINISTRATION OF THE ENGAGEMENT OF THE INDEPENDENT AUDITOR. UNDER THESE RULES, THE SEC HAS PROVIDED THAT A PERMISSIBLE APPROVAL OF AUDIT AND NON-AUDIT SERVICES CAN TAKE THE FORM OF EITHER (I) AN EXPRESS APPROVAL OF A PARTICULAR ENGAGEMENT, OR (II) A PRE-APPROVAL (WHERE A SPECIFIC TYPE OF SERVICE IS AUTHORIZED, GENERALLY SUBJECT TO A FEE MAXIMUM). THE LATTER TYPE OF APPROVALS ARE AUTHORIZED BY SEC RULES ONLY SUBJECT TO DETAILED POLICIES AND PROCEDURES. ACCORDINGLY, THE COMMITTEE HAS ADOPTED THESE AUDIT AND NON-AUDIT SERVICES PRE-APPROVAL POLICIES AND PROCEDURES, WHICH SET FORTH THE PROCEDURES AND THE CONDITIONS PURSUANT TO WHICH SERVICES FOR THE TRUST MAY BE PERFORMED BY THE INDEPENDENT AUDITOR UNDER PRE-APPROVALS. II. GENERAL PRE-APPROVAL POLICIES IT IS THE POLICY OF THE COMMITTEE THAT AUDIT AND NON-AUDIT SERVICES TO BE PERFORMED BY THE TRUST'S INDEPENDENT AUDITOR BE PRE-APPROVED ONLY WHEN IN THE BEST INTERESTS OF THE TRUST'S SHAREHOLDERS AND FULLY CONSISTENT WITH APPLICABLE LAW AND, PARTICULARLY, THE MAINTENANCE OF THE AUDITOR'S INDEPENDENCE. IN GRANTING ANY PRE-APPROVAL, CONSIDERATION SHALL BE GIVEN TO: 1. THE QUALIFICATIONS OF THE AUDITOR TO PERFORM THE SERVICES INVOLVED; 2. THE PROPOSED COSTS (WHICH MAY BE PRESENTED AS AN ESTIMATE OR BASED ON PROFESSIONAL TIME CHARGES SUBJECT TO A CEILING) OF THE SERVICES AND THE REASONABLENESS THEREOF; 3. THE PERMISSIBILITY OF THE SERVICES UNDER APPLICABLE RULES AND GUIDANCE OF THE SEC; 4. THE EFFECT, IF ANY, OF THE PERFORMANCE OF THE PROPOSED SERVICES ON THE AUDITOR'S INDEPENDENCE; 5. THE EFFECT OF THE COMPENSATION FOR THE PROPOSED SERVICES ON THE AUDITOR'S INDEPENDENCE; AND 6. THE EFFECT, IF ANY, OF THE PROPOSED SERVICES ON THE TRUST'S ABILITY TO MANAGE OR CONTROL RISK OR TO IMPROVE AUDIT QUALITY. WHILE NON-AUDIT SERVICES MAY INCLUDE REVIEWING AND/OR VALIDATING PROCEDURES OR WORK PRODUCTS OF THE TRUST, THEY MAY NOT INCLUDE THE PRODUCTION OR MODIFICATION OF SUCH PROCEDURES OR WORK PRODUCTS. WHILE NON-AUDIT SERVICES MAY INCLUDE MARKET RESEARCH AND STRATEGIC INSIGHTS, SUCH SERVICES SHALL BE LIMITED TO FACTUAL REPORTS AND SHALL NOT INCLUDE RECOMMENDATIONS. NO PRE-APPROVAL SHALL BE MADE IN A MANNER THAT WOULD CONSTITUTE A DELEGATION TO THE TRUST'S MANAGEMENT. III. PROCEDURES FOR PRE-APPROVAL BY THE COMMITTEE 1. REQUESTS FOR PRE-APPROVAL SHALL BE IN WRITING AND MAY BE MADE BY EITHER THE INDEPENDENT AUDITORS OR BY MANAGEMENT OF THE TRUST. 2. ALL REQUESTS FOR PRE-APPROVAL SHALL BE MADE TO THE FULL COMMITTEE AT REGULARLY SCHEDULED MEETINGS THEREOF (OR AT A SPECIAL MEETING OF THE COMMITTEE SET TO COINCIDE WITH REGULAR MEETINGS OF THE TRUST'S BOARD OF TRUSTEES) WHENEVER PRACTICABLE. 3. UNDER NORMAL CIRCUMSTANCES, REQUESTS FOR PRE-APPROVAL SHOULD BE PRESENTED AT LEAST 14 DAYS PRIOR (AND IN NO EVENT LATER THAN 48 HOURS PRIOR) TO THE PROPOSED COMMENCEMENT OF THE ENGAGEMENT. 4. IF CONSIDERATION OF A REQUEST FOR PRE-APPROVAL ON THE DATES IDENTIFIED IN SECTION III (2) WOULD NOT BE TIMELY, THE REQUESTING PARTY SHALL NOTIFY THE TRUST'S CHAIRMAN. THE TRUST'S CHAIRMAN SHALL THEN DETERMINE WHETHER TO SCHEDULE A SPECIAL MEETING OF THE COMMITTEE (WHICH MAY BE CONDUCTED TELEPHONICALLY) ON AN ALTERNATIVE DATE OR WHETHER THE REQUEST MAY APPROPRIATELY BE PRESENTED TO A DELEGATE OF THE COMMITTEE UNDER PROCEDURES SET FORTH IN SECTION IV BELOW. 5. REQUESTS FOR PRE-APPROVAL MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING SERVICES: a. AUDIT ENGAGEMENT, PARTICULARLY FOR INTERIM PERIODS; b. PREPARATION OF FUND TAX RETURNS; c. REVIEW AND CONSENTS WITH RESPECT TO USE OF REPORTS IN POST-EFFECTIVE AMENDMENTS TO THE REGISTRATION STATEMENTS OF THE TRUST; d. REVIEW OF IRS SHAREHOLDER MATERIALS; e. REVIEW AND VALIDATION OF FUND PROCEDURES (E.G., VALUATION, INTERFUND LENDING, ETC.), AND f. MARKET RESEARCH AND STRATEGIC INSIGHTS. 6. REQUESTS FOR PRE-APPROVAL SHOULD IDENTIFY THE NATURE OF THE SERVICES TO BE PROVIDED IN A MANNER SUFFICIENTLY SPECIFIC TO ALLOW EVALUATION OF THE CONSIDERATIONS IDENTIFIED ABOVE IN SECTION II. 7. REQUESTS FOR PRE-APPROVAL MUST INCLUDE AN ASSESSMENT BY THE INDEPENDENT AUDITOR OF THEIR INDEPENDENCE SHOULD THE REQUEST BE GRANTED AND THE PROPOSED SERVICES RENDERED. 8. THE COMMITTEE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE RECORDED IN THE COMMITTEE'S MINUTES. 9. THE COMMITTEE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE COMMUNICATED IN WRITING TO THE INDEPENDENT AUDITOR AND, UNDER NORMAL CIRCUMSTANCES, A COPY OF THIS COMMUNICATION SHALL BE PROVIDED TO THE TRUST'S MANAGEMENT. 10. THE COMMITTEE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE REPORTED TO THE FULL BOARD OF TRUSTEES. 11. PRE-APPROVALS WILL BE GRANTED FOR A PERIOD OF NO MORE THAN ONE YEAR. IV. PROCEDURES FOR PRE-APPROVAL BY A DELEGATE OF THE COMMITTEE 1. WHERE IT HAS BEEN DETERMINED BY THE TRUST'S CHAIRMAN THAT CONSIDERATION OF A REQUEST FOR PRE-APPROVAL BY THE FULL COMMITTEE WOULD NOT BE TIMELY, THE CHAIRMAN MAY DETERMINE THAT THE REQUEST BE PRESENTED TO A MEMBER(S) OF THE COMMITTEE APPOINTED BY THE COMMITTEE AS ITS DELEGATE (THE "DELEGATE") FOR THIS PURPOSE. (AS OF THE DATE OF THE ADOPTION OF THESE GUIDELINES AND PROCEDURES, JOHN E. JAYMONT HAS BEEN SO APPOINTED, AND SUCH APPOINTMENT MAY BE REVOKED OR MODIFIED BY THE COMMITTEE AT ANY TIME.) 2. REQUESTS FOR PRE-APPROVAL SHALL BE IN WRITING AND MAY BE MADE BY EITHER THE INDEPENDENT AUDITORS OR BY MANAGEMENT OF THE TRUST. 3. UNDER NORMAL CIRCUMSTANCES, REQUESTS FOR PRE-APPROVAL SHOULD BE PRESENTED AT LEAST 14 DAYS PRIOR (AND IN NO EVENT LATER THAN 48 HOURS PRIOR) TO THE PROPOSED COMMENCEMENT OF THE ENGAGEMENT. 4. REQUESTS FOR PRE-APPROVAL MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING SERVICES: a. AUDIT ENGAGEMENT, PARTICULARLY FOR INTERIM PERIODS; b. PREPARATION OF FUND TAX RETURNS; c. REVIEW AND CONSENTS WITH RESPECT TO USE OF REPORTS IN POST-EFFECTIVE AMENDMENTS TO THE REGISTRATION STATEMENTS OF THE TRUST; d. REVIEW OF IRS SHAREHOLDER MATERIALS; e. REVIEW AND VALIDATION OF FUND PROCEDURES (E.G., VALUATION, INTERFUND LENDING, ETC.); AND f. MARKET RESEARCH AND STRATEGIC INSIGHTS. 5. REQUESTS FOR PRE-APPROVAL SHOULD IDENTIFY THE NATURE OF THE SERVICES TO BE PROVIDED IN A MANNER SUFFICIENTLY SPECIFIC TO ALLOW EVALUATION OF THE CONSIDERATIONS IDENTIFIED ABOVE IN SECTION II. 6. REQUESTS FOR PRE-APPROVAL MUST INCLUDE AN ASSESSMENT BY THE INDEPENDENT AUDITOR OF THEIR INDEPENDENCE SHOULD THE REQUEST BE GRANTED AND THE PROPOSED SERVICES RENDERED. 7. THE DELEGATE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE COMMUNICATED IN WRITING TO THE INDEPENDENT AUDITOR, WITH A COPY TO EACH OTHER MEMBER OF THE COMMITTEE AND, UNDER NORMAL CIRCUMSTANCES, TO THE TRUST'S MANAGEMENT. 8. PRE-APPROVALS BY THE DELEGATE SHALL BE REVIEWED BY THE COMMITTEE AT A MEETING HELD NO LATER THAN THE NEXT SCHEDULED MEETING OF THE BOARD OF TRUSTEES OR THE COMMITTEE, WHICHEVER OCCURS SOONER. AN EARLIER REVIEW SHALL BE CONDUCTED UPON THE WRITTEN REQUEST OF ONE OR MORE COMMITTEE MEMBERS ADDRESSED TO THE CHAIRMAN OF THE TRUST. 9. PRE-APPROVALS BY THE DELEGATE MAY BE MODIFIED OR REVOKED BY THE COMMITTEE, BUT WILL NOT ABSOLVE THE TRUST OF ITS RESPONSIBILITY TO COMPENSATE THE INDEPENDENT AUDITOR FOR SERVICES RENDERED PRIOR TO SUCH MODIFICATION OR REVOCATION. 10. THE RESULTS OF THE COMMITTEE'S REVIEW OF THE DELEGATE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE RECORDED IN THE COMMITTEE'S MINUTES AND REPORTED TO THE FULL BOARD OF TRUSTEES. 11. PRE-APPROVALS WILL BE GRANTED BY THE DELEGATE FOR A PERIOD OF NO MORE THAN ONE YEAR. V. PROCEDURES FOR MONITORING ENGAGEMENTS AUTHORIZED UNDER PRE-APPROVAL PROCEDURES THE INDEPENDENT AUDITOR SHALL INFORM THE COMMITTEE IN WRITING UPON THE COMMENCEMENT OF SERVICES RENDERED UNDER A PRE-APPROVAL. THE INDEPENDENT AUDITOR SHALL THEREAFTER PROVIDE THE COMMITTEE WITH WRITTEN QUARTERLY PROGRESS REPORTS WITHIN ONE MONTH OF THE CLOSE OF EACH CALENDAR QUARTER DETAILING THE WORK DONE AND FEES AND OTHER CHARGES INCURRED DURING SAID CALENDAR QUARTER. SHOULD FEES AND EXPENSES EXCEED THOSE SPECIFIED IN A PRE-APPROVAL (OR APPEAR LIKELY TO DO SO PRIOR TO COMPLETION OF THE WORK), THE INDEPENDENT AUDITOR OR MANAGEMENT SHALL SO APPRISE THE COMMITTEE AND AN ADDITIONAL EXPRESS APPROVAL OR PRE-APPROVAL MUST BE OBTAINED. VI. AMENDMENT THESE POLICIES AND PROCEDURES MAY BE AMENDED OR REVOKED AT ANY TIME BY THE COMMITTEE AND SHALL BE REVIEWED AT LEAST ANNUALLY IN CONJUNCTION WITH REVIEW OF THE AUDIT COMMITTEE CHARTER. (e) 2004 - NONE 2005 - NONE (f) NOT APPLICABLE. (g) 2004 - $109,400 2005 - $91,200 (h) THE AUDIT COMMITTEE HAS CONSIDERED THAT THE PROVISION OF NON-AUDIT SERVICES THAT WERE RENDERED TO THE REGISTRANT'S INVESTMENT ADVISER (NOT INCLUDING ANY SUBADVISER WHOSE ROLE IS PRIMARILY PORTFOLIO MANAGEMENT AND IS SUBCONTRACTED WITH OR OVERSEEN BY ANOTHER INVESTMENT ADVISER), AND ANY ENTITY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH THE INVESTMENT ADVISER THAT PROVIDES ONGOING SERVICES TO THE REGISTRANT THAT WERE NOT PRE-APPROVED PURSUANT TO PARAGRAPH (C)(7)(II) OF RULE 2-01 OF REGULATION S-X IS COMPATIBLE WITH MAINTAINING THE PRINCIPAL ACCOUNTANT'S INDEPENDENCE. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. NOT APPLICABLE. ITEM 6. SCHEDULE OF INVESTMENTS. NOT APPLICABLE. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. NOT APPLICABLE. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. NOT APPLICABLE. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. NOT APPLICABLE. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. 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) 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 RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS. (b) 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)(1) THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS ATTACHED HERETO. (a)(2) CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO. (a)(3) NOT APPLICABLE. (b) 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 ------------------------------------------------------------------ By (Signature and Title) /s/ Steven D. Pierce Steven D. Pierce, Treasurer ----------------------------------------------------- Date October 11, 2005 ---------------- 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/ Bryan C. Haft Bryan C. Haft, President ------------------------------------------------------ Date October 11, 2005 ---------------- By (Signature and Title) /s/ Steven D. Pierce Steven D. Pierce, Treasurer ------------------------------------------------------- Date October 11, 2005 ----------------