UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5669
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Fifth Third Funds
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(Exact name of registrant as specified in charter)
3435 Stelzer Road, Columbus, OH 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
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Date of fiscal year end: July 31
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Date of reporting period: July 31, 2005
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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
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[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
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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
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WEIGHTED AVERAGE MATURITY+
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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
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AN INVESTMENT IN ANY OF THE FUNDS IS NOT INSURED OR GUARANTEED BY THE FDIC OR
ANY GOVERNMENT AGENCY. ALTHOUGH EACH MONEY MARKET FUND SEEKS TO PRESERVE THE
VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY
INVESTING IN A MONEY MARKET FUND.
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
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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
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Less than 8 days 45.7% 46.7% 42.1% 39.3% 80.3% 74.5% 82.6%
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8 to 14 Days 9.5% 9.2% 7.2% 14.8% -- -- --
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15 to 30 Days 20.9% 14.6% 23.3% 25.0% -- 6.7% 2.7%
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31 to 180 Days 19.9% 24.7% 22.0% 15.1% 17.3% 12.8% 14.5%
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181 to 365 Days 3.6% 4.8% 5.4% 5.8% 2.4% 6.0% 0.2%
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366 to 397 Days 0.4% -- -- -- -- -- --
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+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
4
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2005
(AMOUNTS IN THOUSANDS)
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PRINCIPAL
AMOUNT VALUE
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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
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TOTAL CERTIFICATES OF DEPOSIT 71,491
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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
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TOTAL COMMERCIAL PAPER 280,155
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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
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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)
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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
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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
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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
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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
----------------