UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5669
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Fifth Third Funds
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(Exact name of registrant as specified in charter)
3435 Stelzer Road, Columbus, OH 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
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Date of fiscal year end: July 31
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Date of reporting period: January 31, 2006
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ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO]FIFTH THIRD FUNDS
STOCK AND BOND MUTUAL FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
________________
JANUARY 31, 2006
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 tollfree 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
TABLE OF CONTENTS
Economic Outlook and Commentary Section .................................. 1
Management Discussion of Fund Performance
Small Cap Growth Fund .................................................... 4
Mid Cap Growth Fund ...................................................... 5
Quality Growth Fund ...................................................... 6
Large Cap Core Fund ...................................................... 7
Equity Index Fund ........................................................ 8
Balanced Fund ............................................................ 9
Micro Cap Value Fund ..................................................... 10
Small Cap Value Fund ..................................................... 11
Multi Cap Value Fund ..................................................... 12
Disciplined Large Cap Value Fund ......................................... 13
Fifth Third LifeModel Aggressive Fund SM ................................. 14
Fifth Third LifeModel Moderately Aggressive Fund SM ...................... 15
Fifth Third LifeModel Moderate Fund SM ................................... 16
Fifth Third LifeModel Moderately Conservative Fund SM .................... 17
Fifth Third LifeModel Conservative Fund SM ............................... 18
Strategic Income Fund .................................................... 19
Dividend Growth Fund ..................................................... 20
Technology Fund .......................................................... 21
International Equity Fund ................................................ 22
Bond Fund ................................................................ 23
Intermediate Bond Fund ................................................... 24
Short Term Bond Fund ..................................................... 25
U.S. Government Bond Fund ................................................ 26
Municipal Bond Fund ...................................................... 27
Intermediate Municipal Bond Fund ......................................... 28
Ohio Municipal Bond Fund ................................................. 29
Michigan Municipal Bond Fund ............................................. 30
Schedules of Portfolio Investments ....................................... 35
Notes to Schedules of Portfolio Investments .............................. 91
Statements of Assets and Liabilities ..................................... 100
Statements of Operations ................................................. 105
Statements of Changes in Net Assets ...................................... 110
Notes to Financial Statements ............................................ 128
Financial Highlights ..................................................... 138
Notes to Financial Highlights ............................................ 178
Supplemental Information ................................................. 179
OUR MESSAGE TO YOU
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[LOGO]
Patient stock investors were rewarded in the second half of 2005, just as they
were in the second half of 2004.
For the six-month period ended January 31, 2006, the major stock averages posted
the following returns:
o The S&P 500 Index 1 of large cap stocks returned 4.68%.
o The S&P 400 Index 1 of mid cap stocks returned 9.04%.
o The Russell 2000(R) Index 1 of small cap stocks returned 8.50%.
o The MSCI EAFE Index 1 of international stocks returned 18.31%.
The trends in performance--small and mid cap stocks outperforming large caps and
international equities outperforming domestic stocks--extend themes that have
been prevalent for much of the first six years of this decade. Such recurring
patterns continue to illustrate that investors benefit from diversification.
The solid stock market returns were driven by a confluence of several events,
including:
o Hints that the Federal Reserve (the "Fed") may be close to the end
of its rate-hike campaign.
o Continued above-average corporate profit growth.
o Stabilization in energy prices.
o The relatively low bond yield environment.
It was not an easy six-month period for stock investors, though. All of the
major indices endured losses from August through October as the U.S. reeled from
the effects of a disastrous hurricane season on the nation's energy industry and
the entire southeast region. It was not until the energy industry started to
recover and economic reports began to stabilize that stocks reversed their
losses and moved to new highs.
The resilience of the American economy following the devastating hurricanes has
truly been remarkable and highlights how the flexibility of free markets and
capitalism allows our system to absorb such exogenous shocks. It should also be
noted that during this six-month period, the S&P 400 Index and Russell 2000(R)
Index reached all-time highs, while the S&P 500 Index hit levels not seen since
before the September 11 attacks.
While the performance of U.S. stocks was remarkable, international equities
proved to be the star asset class of the period. Net purchases of stocks of
companies based outside the U.S. totaled $86 billion in 2005, according to AMG
Data, nearly equal the record of $88 billion in 2003. Investors continue to be
attracted to the diversification benefits and strong economic growth in areas
from Latin America to Asia.
Fixed income investors experienced a more challenging period. Returns for most
bond indices hovered around 1% as the Fed took its overnight Fed Funds Rate from
3.25% to 4.50%, energy costs spiked and questions emerged about the country's
economic growth prospects. All of these factors combined to push yields higher
across the yield curve and contributed to an inversion of the curve, which
occurs when long-term yields lag short-term rates.
On the bright side, the environment did improve for yield-oriented investors.
Money market yields are now approaching 4%, with corporate bond yields in the 5%
range.
As we move further into 2006, financial markets are likely to remain focused on:
o The Federal Reserve's actions.
o The value of the U.S. dollar.
o Inflationary developments.
o The price of oil.
Much like in 2005, the world economic community continues to grapple with strong
growth in Asia and the resulting upward pressure on global commodity prices. On
the domestic front, baby boomers are enjoying their peak earning, spending and
saving years, but as the first wave turns 60 in 2006, Congress continues to
struggle with how to deal with this aging generation.
One overriding concern is that the Fed will continue to raise short-term rates
despite an already inverted yield curve, which is a signal from the bond market
of concern about a sharply slower rate of future economic growth.
1
While there are always risks, we believe the average diversified and patient
fund investor should continue to do reasonably well as investment opportunities
ebb and flow on a global basis, shifting between stocks and bonds, large and
small companies, international and domestic concerns. Simply put, as long as
global capital is allowed to flow to its best use, solid investment
opportunities could exist.
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 INDEX ("S&P 500") 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 INDEX ("S&P 400") 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 EUROPE AUSTRALASIA AND FAR EAST INDEX
("MSCI EAFE") IS A MARKET CAPITALIZATION-WEIGHTED EQUITY INDEX COMPRISING 20 OF
THE 48 COUNTRIES IN THE MSCI UNIVERSE AND REPRESENTING THE DEVELOPED WORLD
OUTSIDE OF NORTH AMERICA. EACH MSCI COUNTRY INDEX IS CREATED SEPARATELY, THEN
AGGREGATED, WITHOUT CHANGE, INTO REGIONAL MSCI INDICES. EAFE PERFORMANCE DATA IS
CALCULATED IN U.S. DOLLARS AND IN LOCAL CURRENCY.
THE 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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3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP GROWTH FUND
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For the six-month period ended January 31, 2006, the Fifth Third Small Cap
Growth Fund (Institutional Shares) returned 10.87%, slightly topping its
benchmark, the Russell 2000(R) Growth Index, which gained 10.71%.
Small cap stocks shook off the overhang of rising interest rates and increased
energy costs to outperform mid and large cap equities during the period. While
enjoying a rally that ran from November through January, small cap investors
focused on growth names also benefited from a shift in the market's preferences
toward companies with expanding revenues, profits and margins--and away from
value names.
Within the Fund, strong stock selection within the industrials sector
significantly contributed to returns. Machinery holdings performed exceptionally
well as long-stagnant industries such as mining ramped up capital spending
plans. +
Also providing a lift were the Fund's investments in consumer finance and asset
managers. Elsewhere within the financial services sector, an avoidance of banks
and thrifts, which are generally more sensitive to rising interest rates, proved
advantageous. +
The Federal Reserve raised its short-term interest rate 1.25% during the period,
leading many to fret over mortgage and other lending rates. The concerns led to
a downturn in the stocks of homebuilders and durable consumer goods, which
weighed on the Fund's consumer discretionary stake. +
Information technology holdings also detracted from the Fund's performance as an
underweight stake and unfavorable stock selection in the surging semiconductor
area proved painful. With little exposure to the metals group, the Fund
similarly missed out on much of the rally in materials sector shares. +
Within the energy sector, which essentially performed inline with the benchmark,
the Fund's strategy was altered to focus more on service and equipment providers
and less on exploration and production outfits. +
INVESTMENT RISK CONSIDERATIONS
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SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
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6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
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Institutional Shares 10.87% 20.46% 3.75% 8.54%
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Class A Shares* 5.15% 14.07% 2.42% 7.71%
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Class B Shares** 5.48% 14.22% 2.43% 7.44%
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Class C Shares** 9.33% 19.19% 2.71% 7.45%
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Advisor Shares*** 7.00% 15.93% 2.54% 7.62%
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Russell 2000(R)
Growth Index 1 10.71% 19.59% 2.57% 5.74%
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Lipper Small-Cap
Growth Funds Average 1 10.01% 19.34% 2.43% 8.95%
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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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
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AS A PERCENTAGE OF VALUE OF INVESTMENTS +
A.S.V., Inc. ........................................................... 2.26%
General Cable Corp. .................................................... 1.91%
First Cash Financial Services, Inc. .................................... 1.82%
Basic Energy Services, Inc. ............................................ 1.69%
Akamai Technologies, Inc. .............................................. 1.67%
Psychiatric Solutions, Inc. ............................................ 1.66%
American Medical Systems Holdings, ..................................... 1.65%
Hub Group, Inc., Class A ............................................... 1.55%
Core Laboratories N.V. ................................................. 1.51%
HealthExtras, Inc. ..................................................... 1.49%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MID CAP GROWTH FUND
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For the six-month period ended January 31, 2006, the Fifth Third Mid Cap Growth
Fund (Institutional Shares) gained 11.82%, outperforming its benchmark, the
Russell MidCap(R) Growth Index, which returned 10.38%.
The market started the period near the peak of the sizeable rally off April
lows. Hurricane Katrina swamped the optimism in late August and the resulting
slump was exacerbated by the subsequent surge in oil and natural gas prices.
Sentiment improved in November and sparked a recovery that ran through the first
month of 2006. All the while, the Federal Reserve kept bumping up short-term
interest rates--making five quarter-point moves during the period.
Strong performance from the Fund's industrial and energy investments drove
relative returns. Select holdings within the industrials sector powered gains as
large equipment manufacturers such as those supplying the mining industry
enjoyed a resurgence in capital spending plans. +
Hurricane-related production interruptions in the Gulf of Mexico and steadily
growing demand propped up oil and natural gas prices, which contributed to a
strong performance in the energy sector, in which the Fund was overweight. An
emphasis on oilfield equipment and services, which benefited from a renewed
interest in drilling, accounted for much of the lift. +
Dragging on performance was an underweight stake in the information technology
sector, particularly within the semiconductor space, which ranked among the
group's top contributors. By the period's end, the Fund was overweight
technology, with the additions largely occurring among chipmakers and software
companies. +
Consumer discretionary investments modestly diminished returns, although the
Fund lightened up on its specialty retail holdings early in the period to
capture profits realized during the early summer run-up. +
In general, mid cap stocks outperformed larger companies during the period but
slightly trailed small cap names. The five-year run by equities classified as
value holdings appeared to be ending as growth names outperformed--especially
through the closing weeks of the period.
INVESTMENT RISK CONSIDERATIONS
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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 JANUARY 31, 2006
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6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 11.82% 24.48% 1.16% 8.91%
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Class A Shares* 6.08% 18.01% -0.12% 8.13%
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Class B Shares** 6.26% 18.29% -0.21% 7.77%
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Class C Shares** 10.34% 23.32% 0.14% 7.93%
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Advisor Shares*** 7.94% 19.87% 0.02% 8.06%
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Russell MidCap(R)
Growth Index 1 10.38% 22.08% 1.43% 9.71%
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Lipper Mid-Cap Growth
Funds Average 1 10.69% 20.50% 0.48% 8.72%
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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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
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AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Joy Global, Inc. ....................................................... 2.76%
Ultra Petroleum Corp. .................................................. 2.14%
National-Oilwell Varco, Inc. ........................................... 1.89%
GlobalSantaFe Corp. .................................................... 1.81%
Covance, Inc. .......................................................... 1.72%
Laureate Education, Inc. ............................................... 1.72%
Cytyc Corp. ............................................................ 1.70%
XTO Energy, Inc. ....................................................... 1.69%
American Medical Systems Holdings, ..................................... 1.66%
T. Rowe Price Group, Inc. .............................................. 1.63%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
QUALITY GROWTH FUND
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For the six-month period ended January 31, 2006, the Fifth Third Quality Growth
Fund (Institutional Shares) advanced 4.71%, outperforming its benchmarks, the
Russell 1000(R) Growth Index and the S&P 500 Index, which returned 3.91% and
4.68%, respectively.
Modest stock returns defined the large capitalization growth category during the
period, despite reasonably good economic conditions, modest inflationary
pressures and very good corporate earnings reports. Offsetting the positive
factors were high and rising energy costs, an extended run of short-term
interest-rate hikes from the Federal Reserve and the subsequent flattening of
the yield curve as long-term interest rates rose at a much slower pace.
The Fund found success in the consumer discretionary sector, which actually
produced a negative return for the benchmark. Good stock selection in the retail
group--especially among high-end chains and companies transforming under new
management teams--and limited exposure to struggling areas such as media and
cyclical stocks helped generate the outperformance.+
Further enhancing the Fund's gains was an effective collection of companies in
the healthcare space, more specifically drug and device developers in the midst
of strong product cycles. Elsewhere, automation, services and homeland security
stocks lifted the Fund's industrials sector exposure. +
The Fund's emphasis on high quality stocks hurt its performance in the energy
sector, which did well. While the group's riskier names rallied on the strength
of spiking oil and natural gas prices, the Fund's more stable holdings proved
too diversified to fully participate in the headline-driven rallies. +
Similarly, the Fund avoided the materials sector, which is dominated by cyclical
and lower quality stocks. The resulting underweight, relative to the benchmark,
to the solidly performing group diminished returns. +
By the period's end, the Fund reduced its exposure to the industrials sector and
redirected some of the proceeds into companies that reduce costs in the
healthcare industry and some into financial services outfits that stand to gain
once the Federal Reserve stops increasing interest rates. +
INVESTMENT RISK CONSIDERATIONS
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EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 4.71% 13.68% -4.35% 7.53%
- --------------------------------------------------------------------------------
Class A Shares* -0.59% 7.77% -5.58% 6.79%
- --------------------------------------------------------------------------------
Class B Shares** -0.75% 7.61% -5.66% 6.42%
- --------------------------------------------------------------------------------
Class C Shares** 3.23% 12.59% -5.33% 6.65%
- --------------------------------------------------------------------------------
Advisor Shares*** 1.09% 9.50% -5.46% 6.72%
- --------------------------------------------------------------------------------
Russell 1000(R)
Growth Index 1 3.91% 10.81% -4.53% 6.56%
- --------------------------------------------------------------------------------
S&P 500 Index 1 4.68% 10.38% 0.37% 8.99%
- --------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 5.04% 10.31% -0.88% 7.58%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
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AS A PERCENTAGE OF VALUE OF INVESTMENTS +
L-3 Communications Holdings, Inc. ...................................... 3.03%
Amgen, Inc. ............................................................ 2.90%
CVS Corp. .............................................................. 2.82%
EMC Corp. .............................................................. 2.67%
Best Buy Co., Inc. ..................................................... 2.61%
Marriott International, Inc., Class A .................................. 2.57%
General Electric Corp. ................................................. 2.52%
Station Casinos, Inc. .................................................. 2.50%
Microsoft Corp. ........................................................ 2.39%
Caremark Rx, Inc. ...................................................... 2.34%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
LARGE CAP CORE FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Large Cap Core
Fund (Institutional Shares) advanced 5.02%, compared to its benchmarks, the
Russell 1000(R) Index and the S&P 500 Index, which advanced 5.04% and 4.68%,
respectively.
Relying on a series of financial calculations, also known as quantitative
analysis, to pick stocks and control risk, the Fund emphasize equities with
attractive valuations, positive market sentiment, disciplined capital use and
high earnings quality. The mathematical models identify emerging trends to drive
stock selection for the Fund, which is rebalanced monthly to capture market
shifts. +
For example, during the second quarter of 2005, momentum-driven equities
possessing lower quality profiles and above-average volatility came to the
forefront. Aside from October, when pessimism over economic growth, interest
rates and inflation flared, such stocks outperformed for much of the past six
months, and the Fund was well positioned to benefit.
Generally speaking, the Fund also invested in stocks with traditional value
characteristics--as opposed to those with growth traits--and its average market
capitalization was smaller than the benchmark. Stock selection accounted for
much of the Fund's outperformance, with top individual performers coming from a
variety of industries. +
Significant sector stakes are generally avoided as the Fund's weightings are
kept close to the benchmark. Accordingly, the best performing sectors during the
period were energy and materials--just like the Index--while the worst
contributor was consumer discretionary. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 5.02% 10.82% -0.43% 6.99%
- --------------------------------------------------------------------------------
Class A Shares* -0.38% 5.02% -1.70% 6.19%
- --------------------------------------------------------------------------------
Class B Shares** -0.49% 4.68% -1.80% 5.91%
- --------------------------------------------------------------------------------
Class C Shares** 3.57% 9.74% -1.41% 5.92%
- --------------------------------------------------------------------------------
Advisor Shares*** 1.35% 6.66% -1.57% 6.11%
- --------------------------------------------------------------------------------
Russell 1000(R) Index 1 5.04% 12.07% 0.98% 9.24%
- --------------------------------------------------------------------------------
S&P 500 Index 1 4.68% 10.38% 0.37% 8.99%
- --------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 5.04% 10.31% -0.88% 7.58%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001,
OCTOBER 29, 2001 AND AUGUST 1, 2005, RESPECTIVELY. 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Exxon Mobil Corp. ...................................................... 3.81%
Microsoft Corp. ........................................................ 2.77%
Citigroup, Inc. ........................................................ 2.53%
Bank of America Corp. .................................................. 2.30%
Pfizer, Inc. ........................................................... 2.24%
General Electric Corp. ................................................. 2.02%
Johnson & Johnson ...................................................... 2.00%
Intel Corp. ............................................................ 1.59%
Hewlett-Packard Co. .................................................... 1.43%
Coca-Cola Co. .......................................................... 1.40%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Equity Index
Fund (Institutional Shares) returned 4.59%, in comparison its benchmark, the S&P
500 Index, which advanced 4.68%.
As the Fund seeks to duplicate the returns of the S&P 500 Index, slight
underperformance is expected, due primarily to Fund management fees.
Opportunities to regain some measure of performance occasionally occur when the
Index changes its membership. After an exceptionally quiet second quarter of
2005, in which there were no constituent changes, 17 additions or deletions were
made during the six-month reporting period. While merger and acquisition
activity accounted for many of the changes, financial woes led to the removal of
four companies, including three that filed for bankruptcy. +
Generally speaking, smaller capitalization stocks outperformed larger equities
and value names outgained growth holdings during the period. In addition,
tolerance for riskier stocks increased and more cyclical issues gained favor.
More specifically, the energy sector was the best performing group during the
period. Already high oil and natural gas prices jumped further in the aftermath
of Hurricane Katrina and contributed to record profits within the group.
Reinvigorated exploration and capital investment plans further bolstered the
stocks of drillers and equipment companies. +
Steadily increasing worldwide consumption levels contributed to rising commodity
costs and enhanced earnings in the materials group, the second best performer.
Financial services stocks also outperformed as investment banks profited from a
healthy merger and acquisition environment. +
The multifaceted consumer discretionary sector led all detractors. Soaring
energy prices and rising interest rates weighed on consumer spending habits,
which cut into retailers' profits, while the media and broadcast industries
contended with an acceleration of spending on Internet advertising options. +
The telecommunication services group also generated a negative return during the
period, while the consumer staples sector, where consumer spending concerns
resonated, offered a meager gain. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS SUBSTANTIALLY ALL OF ITS ASSETS IN COMMON STOCK OF COMPANIES
THAT MAKE UP THE S&P 500(R) INDEX. THE ADVISOR ATTEMPTS TO TRACK THE
PERFORMANCE OF THE S&P 500(R) INDEX TO ACHIEVE A CORRELATION OF 0.95 BETWEEN
THE PERFORMANCE OF THE FUND AND THAT OF THE S&P 500(R) INDEX WITHOUT TAKING
INTO ACCOUNT THE FUND'S EXPENSES.
IT IS IMPORTANT TO REMEMBER THAT THERE ARE RISKS ASSOCIATED WITH INDEX
INVESTING, INCLUDING THE POTENTIAL RISK OF MARKET DECLINE, AS WELL AS THE RISKS
ASSOCIATED WITH INVESTING IN SPECIFIC COMPANIES.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 4.59% 10.18% 0.08% 8.62%
- --------------------------------------------------------------------------------
Class A Shares* -0.74% 4.44% -1.19% 7.80%
- --------------------------------------------------------------------------------
Class B Shares** -0.97% 4.11% -1.31% 7.54%
- --------------------------------------------------------------------------------
Class C Shares** 3.03% 9.10% -0.91% 7.54%
- --------------------------------------------------------------------------------
Advisor Shares*** 0.96% 6.06% 1.05% 7.73%
- --------------------------------------------------------------------------------
Select Shares 4.56% 10.11% -0.00% 8.55%
- --------------------------------------------------------------------------------
Preferred Shares 4.52% 10.03% -0.08% 8.47%
- --------------------------------------------------------------------------------
Trust Shares 4.46% 9.91% -0.17% 8.36%
- --------------------------------------------------------------------------------
S&P 500 Index 1 4.68% 10.38% 0.37% 8.99%
- --------------------------------------------------------------------------------
Lipper S&P 500(R) Index
Objective Funds Average 1 4.40% 9.82% -0.19% 8.54%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Exxon Mobil Corp. ...................................................... 2.95%
General Electric Corp. ................................................. 2.61%
Microsoft Corp. ........................................................ 1.94%
Citigroup, Inc. ........................................................ 1.78%
Bank of America Corp. .................................................. 1.55%
Procter & Gamble Co. ................................................... 1.50%
Pfizer, Inc. ........................................................... 1.43%
Johnson & Johnson ...................................................... 1.29%
American International Group, Inc. ..................................... 1.28%
Altria Group, Inc. ..................................................... 1.14%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
8
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BALANCED FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Balanced Fund
(Institutional Shares) gained 1.40%. Separately, its benchmarks, the S&P 500
Index and the Lehman Brothers Aggregate Bond Index returned 4.68% and 0.84%,
respectively.
Within the period, record price increases for crude oil and metals such as
copper, along with a 25-year high in the price of gold, fueled concerns about
inflation, prompting the Federal Reserve to keep bumping up short-term interest
rates. In addition, a slowing housing market started to take the steam out of
consumer spending levels.
The Fund's equity holdings suffered from poor stock selection in the information
technology sector, notably semiconductors, software and hardware. Financial
services stocks also hindered returns as the Fund was overweight in banks, which
contended with a very difficult operating environment as short-term interest
rates rose faster than long-term yields. +
Positive contributors included the energy sector, where an overweight stake,
relative to the benchmark, in oilfield service and equipment thrived. A solid
collection of companies from the industrials group outperformed as well. +
At the period's close, the Fund had reduced its exposure to the semiconductor
and bank industries while moving to overweight positions in the energy and
industrials sectors, where growth prospects continued to be robust. +
In the fixed income portion of the Fund, asset backed securities tied to home
equity loans outperformed. Further enhancing gains were high quality commercial
mortgage backed securities (CMBS), which offered higher yields than Treasuries.
Diminishing returns were bank and financial service provider bonds which sagged
amid a broad corporate pullback. +
By the period's end, the Fund had boosted its exposure to the CMBS market, where
strong fundamentals such as high occupancy rates and historically low default
levels abound. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 1.40% 3.63% -1.97% 6.46%
- --------------------------------------------------------------------------------
Class A Shares* -3.72% -1.71% -3.23% 5.72%
- --------------------------------------------------------------------------------
Class B Shares** -4.10% -2.35% -3.32% 5.36%
- --------------------------------------------------------------------------------
Class C Shares** -0.09% 2.66% -2.98% 5.55%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.09% -0.14% -3.13% 5.51%
- --------------------------------------------------------------------------------
S&P 500 Index 1 4.68% 10.38% 0.37% 8.99%
- --------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1 0.84% 1.80% 5.53% 6.10%
- --------------------------------------------------------------------------------
Lipper Balanced
Funds Average 1 4.47% 8.59% 2.65% 7.13%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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. 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 HOLDINGS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fannie Mae, 4.50%, 5/1/18 TBA .......................................... 2.34%
Fannie Mae, 5.50%, 6/1/33 TBA .......................................... 2.17%
Chase Mortgage Finance Corp., Series ................................... 1.90%
McDonald's Corp. ....................................................... 1.84%
Truck Retail Installment Paper Corp. ................................... 1.76%
JP Morgan Mortgage Trust, Series ....................................... 1.72%
BMW US Capital LLC, 4.36%, 2/16/06 ..................................... 1.53%
Chase Mortgage Finance Corp, 5.00%, .................................... 1.36%
Freddie Mac. 4.50%, 8/15/16 ............................................ 1.35%
American Home Mortgage Investment ...................................... 1.27%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICRO CAP VALUE FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Micro Cap Value
Fund (Institutional Shares) produced a total return of 9.28%, in comparison to
its benchmarks, the Russell 2000(R) Value Index, and the Russell Micro Cap(R)
Index which gained 6.31% and 9.51%, respectively.
Amid record prices in the oil market, the energy sector topped the benchmark.
Although the Fund's energy holdings participated in the rally, an underweight
stake, relative to the Index, diminished performance. Investing primarily in
companies that provide oilfield services and develop the industry's
infrastructure, the Fund missed out on the run-up in exploration and production
companies. Many of those names, however, are more speculative and don't own
proven reserves--key assets that value investors require from an exploration and
production outfit. +
Elsewhere, the Fund's overweight position in the materials sector detracted from
performance, as did a greater-than-the-benchmark stake in the consumer
discretionary space. Expanding energy costs, rising interest rates and a cooling
housing market dampened enthusiasm among discretionary names and the Fund spent
much of the period scaling back its exposure. +
Consumer staples stocks also lagged during the period, but the Fund's overweight
stake in a collection of strong performers--most notably within the alternative
fuel industry--bolstered returns. Similarly, strong stock picking and overweight
positions in the industrial and healthcare sectors supplied benchmark-beating
gains. A portion of the advance may be attributed to a healthy merger and
acquisition environment. +
Further boosting performance was an underweight position in financial services,
one of the weaker performing groups during the period. Concerns about the impact
of the flattening of the yield curve--which occurs when the difference between
short-term and long-term interest rates shrinks--prompted an aversion to banks,
which rely on larger interest rate spreads for profits. By the period's end,
however, expectations for a reversal in conditions began to emerge and the Fund
began moving into bank stocks that appeared undervalued. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
MICRO CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MICRO-CAP
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MICRO-CAP
STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY
STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR 5 YEAR INCEPTION
--------- ------------ ------- ------- ---------
Institutional Shares 2/1/98 9.28% 10.29% 18.61% 15.85%
- --------------------------------------------------------------------------------
Class A Shares* 2/1/98 3.71% 4.54% 17.14% 14.96%
- --------------------------------------------------------------------------------
Class B Shares** 2/1/98 4.81% 5.61% 17.52% 14.98%
- --------------------------------------------------------------------------------
Class C Shares** 2/1/98 7.87% 9.47% 17.79% 15.23%
- --------------------------------------------------------------------------------
Advisor Shares*** 2/1/98 5.38% 6.14% 17.37% 14.96%
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index 1 6.31% 17.93% 14.74% 11.31%
- --------------------------------------------------------------------------------
Russell Micro
Cap(R) Index 1 9.51% 16.65% 13.53% N/A
- --------------------------------------------------------------------------------
Lipper Small-Cap Value
Funds Average 1 6.93% 17.15% 14.20% 10.76%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Stepan Co. ............................................................. 2.17%
Apogee Enterprises, Inc. ............................................... 1.99%
Material Sciences Corp. ................................................ 1.91%
SonicWALL, Inc. ........................................................ 1.72%
BioScrip, Inc. ......................................................... 1.68%
OSI Systems, Inc. ...................................................... 1.61%
Symmetricom, Inc. ...................................................... 1.59%
National Atlantic Holdings Corp. ....................................... 1.46%
Input/Output, Inc. ..................................................... 1.38%
Brush Engineered Materials, Inc. ....................................... 1.37%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
10
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Small Cap Value
Fund (Institutional Shares) produced a total return of 6.50%, compared to its
benchmark, the Russell 2000(R) Value Index, which gained 6.31%.
Hurricanes Katrina and Rita had a powerful impact on the equity markets during
the period, contributing to a large rally in oil and natural gas prices and
spurring pessimism about the underlying health of the economy. In the closing
weeks, signs of the long-feared moderation in consumer spending appeared on the
margins, which raised new questions.
Against this backdrop, small cap stocks performed surprisingly well and
outperformed the larger names that tend to lead the market in periods of
uncertainty.
Within the Fund, Katrina aftershocks contributed to the leading performance by
the industrials sector. As transportation stocks slumped following the disaster,
the Fund stepped in and purchased a number of temporarily undervalued companies.
When the prices subsequently recovered, the Fund benefited. +
A successful turnaround and buyout in the retail clothing area boosted the
Fund's consumer discretionary stake, while some effective stock picks boosted
the consumer staples sector. +
Detracting from returns was a collection of poor performers within the
information technology sector. Competitive issues in the drug and medical device
arenas also pulled down the Fund's healthcare holdings. Although smaller
ventures in the healthcare space are vulnerable to challenges by larger,
better-financed entities, good values continue to exist and offer potential for
future gains. +
Over the course of the period, the Fund added to its overweight stake in
consumer staples and pared its exposure to the consumer discretionary space down
to an underweight position. Other sector weights in excess of the benchmark
included energy, materials and utilities while the Fund's investments in the
financial services, technology and telecommunication services groups were less
than the Index. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR INCEPTION
--------- ------------ ------ ---------
Institutional Shares 4/1/03 6.50% 21.58% 24.17%
- --------------------------------------------------------------------------------
Class A Shares* 4/1/03 1.06% 15.20% 21.61%
- --------------------------------------------------------------------------------
Class B Shares** 4/1/03 1.25% 15.39% 22.24%
- --------------------------------------------------------------------------------
Class C Shares** 4/1/03 4.99% 20.37% 22.90%
- --------------------------------------------------------------------------------
Advisor Shares*** 4/1/03 2.76% 17.01% 22.13%
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index 1 6.31% 17.93% 30.63%
- --------------------------------------------------------------------------------
Lipper Small-Cap Core
Funds Average 1 8.53% 18.46% 28.68%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Service Corp. International ............................................ 2.60%
Piper Jaffray Cos., Inc. ............................................... 2.36%
Scottish Re Group, Ltd. ................................................ 2.32%
Bob Evans Farms, Inc. .................................................. 2.25%
Georgia Gulf Corp. ..................................................... 2.16%
Wintrust Financial Corp. ............................................... 2.12%
Veritas DGC, Inc. ...................................................... 2.07%
Hain Celestial Group, Inc. ............................................. 1.98%
Standard Register Co. .................................................. 1.97%
Endurance Specialty Holdings, Ltd. ..................................... 1.95%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MULTI CAP VALUE FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Multi Cap Value
Fund (Institutional Shares) advanced 6.73%, outperforming its benchmarks, the
Russell 3000(R) Value Index and the Russell MidCap(R) Value Index, which
returned 6.22% and 6.32%, respectively.
As small capitalization stocks generally outperformed larger equities during the
period, attractively valued opportunities were more likely to materialize within
the large cap universe. Reflecting the market shift, the Fund's weighted average
market cap expanded and by the period's close, the portion of holdings with a
market cap larger than $5 billion had grown from 66% to 73% while positions
smaller than $5 billion shrank from 29% to 22%. +
After years of strength, consumer spending habits appeared to weaken during the
period, prompting the Fund to reduce its exposure to a wide variety of consumer
discretionary holdings, ranging from specialty retail outfits to auto part
manufacturers. The Fund also took profits in the energy sector, one of the top
performers during the period, as stock valuations spiked along with oil and
natural gas prices following Hurricane Katrina. +
Some proceeds were redeployed in the financial services sector, notably in bank
stocks. In a flattening yield curve environment, which occurs when long-term
interest rates don't increase as quickly as short-term rates, bank earnings
generally suffer. Anticipating that the Federal Reserve will stop pushing up
short-term rates in the near future, however, the Fund increased its exposure to
bigger regional banks and diversified money center banks. +
Exposure to the materials sector also jumped as mid-period fears of a recession
and cost concerns pushed down stock prices--a swing that proved temporary as the
lower valuations led to increased merger and acquisition activity and
speculation. +
The Fund's industrials stake gained amid renewed demands for heavy machinery and
a recovery by transportation stocks that fell in the aftermath of the Gulf Coast
hurricanes. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 6.73% 16.46% 9.35% 12.35%
- --------------------------------------------------------------------------------
Class A Shares* 1.25% 10.35% 7.93% 11.56%
- --------------------------------------------------------------------------------
Class B Shares** 1.31% 10.30% 8.07% 11.78%
- --------------------------------------------------------------------------------
Class C Shares** 5.20% 15.27% 8.34% 11.77%
- --------------------------------------------------------------------------------
Advisor Shares*** 2.98% 12.15% 8.10% 11.65%
- --------------------------------------------------------------------------------
Russell 3000(R) Value Index 1 6.22% 13.63% 6.64% 11.19%
- --------------------------------------------------------------------------------
Russell MidCap(R) Value Index 1 6.32% 20.33% 13.25% 13.86%
- --------------------------------------------------------------------------------
Lipper Multi-Cap Value
Funds Average 1 5.62% 12.53% 5.66% 9.78%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Marathon Oil Corp. ..................................................... 2.30%
Humana, Inc. ........................................................... 2.09%
J.P. Morgan Chase & Co. ................................................ 1.99%
Merrill Lynch & Co., Inc. .............................................. 1.88%
ConocoPhillips ......................................................... 1.78%
American International Group, Inc. ..................................... 1.75%
Bank of New York Co., Inc. ............................................. 1.67%
Bank of America Corp. .................................................. 1.66%
Schlumberger, Ltd. ..................................................... 1.59%
Honeywell International, Inc. .......................................... 1.44%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
12
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DISCIPLINED LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Disciplined
Large Cap Value Fund (Institutional Shares) returned 3.74%, in comparison to its
benchmark, the Russell 1000(R) Value Index, which advanced 6.21%.
Value-oriented stocks extended a multi-year winning streak versus growth stocks
during the period, while returns from lower quality equities topped higher
quality names. Given the latter development, a portion of the Fund's
underperformance may be traced to an emphasis on higher quality stocks, which
generally offered better values than low quality equities.
From a sector standpoint, investments in the materials, healthcare and consumer
staples sectors weighed on returns. While the Fund's overweight position in
materials, relative to the benchmark added to performance, as commodity markets
responded to a continued rise in overseas consumption, the Fund's selections in
the chemical and metals groups failed to keep pace with the broader rally. +
Product liability and pipeline issues hindered a number of pharmaceutical
holdings, which contributed to the underperformance in healthcare. The stake in
the consumer staples area included no exposure to tobacco or spirits stocks,
which performed relatively well. A number of the Fund's food and beverage
holdings also produced uninspiring results. +
Providing a lift was effective stock picking in the industrials and consumer
discretionary spaces. In the industrials group, the Fund's investments profited
from the expansion in worldwide demand for mining and other industrial
equipment. Avoiding the major domestic automakers and companies exposed to that
industry produced better-than-the-benchmark results in the discretionary
sector. +
At the period's close, the characteristics of the Fund were very similar to the
benchmark in traditional value measures such as price-book ratio and average
yield, but it demonstrated deeper value traits in measures such as
price-earnings ratio and price-sales ratio. Meanwhile, the Fund's greater
exposure to higher quality names stemmed from the lack of compelling values in
the lower quality space. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 3.74% 11.90% 5.46% 9.77%
- --------------------------------------------------------------------------------
Class A Shares* -1.53% 6.08% 4.12% 9.00%
- --------------------------------------------------------------------------------
Class B Shares** -1.39% 5.81% 4.12% 8.76%
- --------------------------------------------------------------------------------
Class C Shares** 2.32% 10.85% 4.40% 8.79%
- --------------------------------------------------------------------------------
Advisor Shares*** 0.11% 7.78% 4.23% 8.93%
- --------------------------------------------------------------------------------
Russell 1000(R)
Value Index 1 6.21% 13.22% 6.00% 11.03%
- --------------------------------------------------------------------------------
Lipper Equity Income
Funds Average 1 4.76% 11.23% 4.15% 8.75%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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, CLASS C AND ADVISOR SHARES OF THE DISCIPLINED LARGE CAP
VALUE FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, JANUARY 27, 1997 AND AUGUST 1,
2005, 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, 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Royal Dutch Shell PLC ADR, A ........................................... 3.33%
MetLife, Inc. .......................................................... 3.08%
J.P. Morgan Chase & Co. ................................................ 2.89%
ConocoPhillips ......................................................... 2.76%
Merrill Lynch & Co., Inc. .............................................. 2.70%
SunTrust Banks, Inc. ................................................... 2.56%
Gannett, Inc. .......................................................... 2.42%
Hartford Financial Services Group ...................................... 2.41%
Marathon Oil Corp. ..................................................... 2.36%
Pfizer, Inc. ........................................................... 2.27%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
13
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third LifeModel
Aggressive Fund SM (Institutional Shares) produced a total return of 6.86%,
while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers
Intermediate Government/Credit Bond Indices, advanced 5.67% and 0.81%
respectively.
Diversification served investors well during the period as returns on asset
classes varied dramatically. While large capitalization domestic stocks
generated returns around 5%, mid cap and small cap equity advances hovered near
9%. Meanwhile, international stocks posted returns of 15% or better and fixed
income investments generally gained around 1%.
The Fund's performance stemmed largely from its continued bias towards a
diversified group of stocks. More specifically, the Fund's international
exposure was increased and domestic holdings tilted toward larger cap companies.
+
Fixed income investments were kept at modest levels as the yield curve
flattened, which occurs when short-term yields increase faster than long-term
rates. Although the Fund's small bond exposure was not additive to performance
for the period, it still plays an essential strategic role, given the elevated
levels of geopolitical and terrorism risk in the world. +
Through the first weeks of 2006, the Fund adopted a more cautious tone and
exited some equity positions in favor of cash. With a still-active Federal
Reserve, an inverted yield curve--featuring higher short-term interest rates
than long-term yields--and the elevated price of gold, a wary approach seems
prudent. However, the outlook for equities is far from dreary as two long-term
drivers of stock prices--above average corporate profits and below average long
bond yields--continue to exhibit favorable characteristics. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR INCEPTION
--------- ------------ ------ ---------
Institutional Shares 8/1/02 6.86% 15.77% 14.48%
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 1.43% 9.66% 12.49%
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 1.36% 9.58% 12.68%
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 5.30% 14.59% 13.33%
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 3.11% 11.38% 12.82%
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.67% 13.13% 14.23%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 0.81% 1.37% 3.98%
- --------------------------------------------------------------------------------
LifeModel Aggressive
Target Neutral Asset Class
Index Blend 1 5.19% 11.94% 13.26%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE
INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE
ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE
ADVISOR SHARES ON AUGUST 1, 2005. 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Fifth Third Quality
Growth Fund 23.42%
Fifth Third Disciplined
Large Cap Value Fund 17.02%
Fifth Third Large
Cap Core Fund 13.62%
Fifth Third International
Equity Fund 12.14%
Fifth Third Mid
Cap Growth Fund 10.53%
Fifth Third Multi
Cap Value Fund 8.11%
Fifth Third Small
Cap Growth Fund 6.11%
Fifth Third Small 4.62%
Cap Value Fund
Fifth Third Intermediate 1.91%
Bond Fund
Fifth Third Institutional
Money Market Fund 1.56%
Fifth Third High
Yield Bond Fund 0.96%
0% 5% 10% 15% 20% 25%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
14
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATELY AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third LifeModel
Moderately Aggressive Fund SM (Institutional Shares) produced a total return of
5.61%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers
Intermediate Government/Credit Bond Indices, advanced 5.67% and 0.81%,
respectively.
Diversification served investors well during the period as returns on asset
classes varied dramatically. While large capitalization domestic stocks
generated returns around 5%, mid cap and small cap equity advances hovered near
9%. Meanwhile, international stocks posted returns of 15% or better and fixed
income investments generally gained around 1%.
The Fund's performance stemmed largely from its continued bias towards a
diversified group of stocks. More specifically, the Fund's international
exposure was increased and domestic holdings tilted toward larger cap companies.
+
Fixed income investments were kept at modest levels as the yield curve
flattened, which occurs when short-term yields increase faster than long-term
rates. Although the Fund's small bond exposure was not additive to performance
for the period, it still plays an essential strategic role, given the elevated
levels of geopolitical and terrorism risk in the world. +
Through the first weeks of 2006, the Fund adopted a more cautious tone and
exited some equity positions in favor of cash. With a still-active Federal
Reserve, an inverted yield curve--featuring higher short-term interest rates
than long-term yields--and the elevated price of gold, a wary approach seems
prudent. However, the outlook for equities is far from dreary as two long-term
drivers of stock prices--above average corporate profits and below average long
bond yields--continue to exhibit favorable characteristics. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR INCEPTION
--------- ------------ ------ ---------
Institutional Shares 8/1/02 5.61% 12.64% 13.38%
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 0.15% 6.70% 11.43%
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 0.08% 6.50% 11.62%
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 3.99% 11.48% 12.26%
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 1.92% 8.47% 11.75%
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.67% 13.13% 14.23%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 0.81% 1.36% 3.98%
- --------------------------------------------------------------------------------
LifeModel Moderately
Aggressive Target Neutral
Asset Class Index Blend 1 4.23% 9.56% 11.28%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE
INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE
ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE
ADVISOR SHARES ON AUGUST 1, 2005. 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Fifth Third Quality 18.91%
Growth Fund
Fifth Third Disciplined 13.83%
Large Cap Value Fund
Fifth Third Large 10.60%
Cap Core Fund
Fifth Third International 10.29%
Equity Fund
Fifth Third Mid 8.20%
Cap Growth Fund
Fifth Third Intermediate 6.58%
Bond Fund
Fifth Third Multi 6.25%
Cap Value Fund
Fifth Third Short 5.64%
Term Bond Fund
Fifth Third High 4.75%
Yield Bond Fund
Fifth Third 4.70%
Bond Fund
Fifth Third Small 4.30%
Cap Growth Fund
Fifth Third Small 3.24%
Cap Value Fund
Fifth Third Institutional 2.71%
Money Market Fund
0% 5% 10% 15% 20%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATE FUND SM
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third LifeModel
Moderate Fund SM (Institutional Shares) produced a total return of 4.41%, while
its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers Intermediate
Government/Credit Bond Indices, advanced 5.67% and 0.81%, respectively.
Returns on asset classes varied dramatically during the period with diversified
stock investors enjoying gains in the 7% range and bond investors realizing
returns of around 1%.
The Fund's performance resulted in part from a continued bias toward stocks.
Furthermore, the diversified nature of the equity portfolio--including large,
medium and small capitalization stocks as well as international
holdings--enhanced returns. +
A defensive posture with a tilt toward shorter-term investments was maintained
within the bond portion of the portfolio. This longstanding strategy reflects
uncertainty over prospects in long-term bonds, where yields appear too low,
given above-average economic growth and an active Federal Reserve. +
Through the first weeks of 2006, the Fund adopted a more cautious tone and
exited some equity positions in favor of cash. With more short-term interest
rate hikes from the Federal Reserve likely, an inverted yield curve--featuring
higher short-term interest rates than long-term yields--and the elevated price
of gold, a wary approach seems prudent. However, the outlook for equities is far
from dreary as two long-term drivers of stock prices--above average corporate
profits and below average long bond yields--continue to exhibit favorable
characteristics. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR INCEPTION
--------- ------------ ------ ---------
Institutional Shares 8/1/02 4.41% 9.78% 9.93%
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -0.94% 4.05% 8.05%
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -1.07% 3.67% 8.14%
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 2.92% 8.74% 8.87%
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 0.69% 5.63% 8.32%
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.67% 13.13% 14.23%
- --------------------------------------------------------------------------------
Lehman Brothers
IntermediateGovernment/
Credit Bond Index 1 0.81% 1.36% 3.98%
- --------------------------------------------------------------------------------
LifeModel Moderate Target
Neutral Asset Class Index
Blend 1 3.26% 7.20% 9.25%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE
INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE
ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE
ADVISOR SHARES ON AUGUST 1, 2005. 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Fifth Third Intermediate
Bond Fund 16.81%
Fifth Third Quality
Growth Fund 14.17%
Fifth Third Short
Term Bond Fund 10.92%
Fifth Third Disciplined
Large Cap Value 10.24%
Fifth Third
Bond Fund 9.90%
Fifth Third International
Equity Fund 8.85%
Fifth Third Large
Cap Core Fund 7.87%
Fifth Third Mid
Cap Growth Fund 5.78%
Fifth Third High
Yield Bond Fund 5.00%
Fifth Third Multi
Cap Value Fund 4.51%
Fifth Third Small
Cap Growth Fund 3.19%
Fifth Third Small
Cap Value Fund 2.41%
Fifth Third Institutional
Money Market Fund 0.35%
0% 5% 10% 15% 20%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
16
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
MODERATELY CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third LifeModel
Moderately Conservative Fund SM (Institutional Shares) produced a total return
of 3.57%, while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman
Brothers Intermediate Government/Credit Bond Indices, advanced 5.67% and 0.81%,
respectively.
Returns on asset classes varied dramatically during the period with diversified
stock investors enjoying gains in the 7% range and bond investors realizing
returns of around 1%.
The Fund's performance resulted in part from a continued bias toward stocks.
Furthermore, the diversified nature of the equity portfolio--including large,
medium and small capitalization stocks as well as international
holdings--enhanced returns while lowering the overall risk profile of the Fund's
equity exposure. +
A defensive posture with a tilt toward shorter-term investments was maintained
within the bond portion of the portfolio. This longstanding strategy reflects
uncertainty over prospects in long-term bonds, where yields appear too low,
given above-average economic growth and an active Federal Reserve.
Through the first weeks of 2006, the Fund adopted a more cautious tone and
exited some equity positions in favor of cash. With more short-term interest
rate hikes from the Federal Reserve likely, an inverted yield curve--featuring
higher short-term interest rates than long-term yields--and the elevated price
of gold, a wary approach seems prudent. As such headwinds can cause
complications for stocks and added volatility for bonds, both markets will be
monitored closely. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR INCEPTION
--------- ------------ ------ ---------
Institutional Shares 8/1/02 3.57% 7.96% 8.03%
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -1.73% 2.33% 6.17%
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -1.91% 1.93% 6.23%
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 2.06% 6.91% 6.96%
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 -0.03% 3.94% 6.48%
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.67% 13.13% 14.23%
- --------------------------------------------------------------------------------
Lehman Brothers
IntermediateGovernment/
Credit Bond Index 1 0.81% 1.36% 3.98%
- --------------------------------------------------------------------------------
LifeModel Moderately
Conservative Target Neutral
Asset Class Index Blend 1 2.77% 6.02% 8.22%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE
INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE
ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE
ADVISOR SHARES ON AUGUST 1, 2005. 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Fifth Third Intermediate
Bond Fund 19.22%
Fifth Third Short
Term Bond Fund 14.46%
Fifth Third
Bond Fund 12.50%
Fifth Third Quality
Growth Fund 12.43%
Fifth Third Disciplined
Large Cap Value Fund 9.18%
Fifth Third International
Equity Fund 7.96%
Fifth Third Large
Cap Core Fund 5.96%
Fifth Third High
Yield Bond Fund 4.87%
Fifth Third Mid
Cap Growth Fund 4.43%
Fifth Third Multi
Cap Value Fund 3.38%
Fifth Third Small
Cap Growth Fund 2.15%
Fifth Third Institutional
Money Market Fund 1.84%
Fifth Third Small
Cap Value Fund 1.62%
0% 5% 10% 15% 20%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
FIFTH THIRD LIFEMODEL
CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third LifeModel
Conservative Fund SM (Institutional Shares) produced a total return of 2.46%,
while its benchmarks, the Dow Jones Wilshire 5000 and the Lehman Brothers
Intermediate Government/Credit Bond Indices, advanced 5.67% and 0.81%,
respectively.
Returns on asset classes varied dramatically during the period with diversified
stock investors enjoying gains in the 7% range and bond investors realizing
returns of around 1%.
The Fund's performance resulted in part from an optimal exposure to equity
investments during the period. Furthermore, the diversified nature of the stock
portfolio--including large, medium and small capitalization stocks as well as
international holdings--enhanced returns while lowering the overall risk profile
of the Fund's equity exposure, which remained modest and within the investment
guidelines. +
A defensive posture with a tilt toward shorter-term investments was maintained
within the bond portion of the portfolio. This longstanding strategy reflects
uncertainty over prospects in long-term bonds, where yields appear too low,
given above-average economic growth and an active Federal Reserve. +
Through the first weeks of 2006, the Fund adopted a more cautious tone and
exited some equity positions in favor of cash. With more short-term interest
rate hikes from the Federal Reserve likely, an inverted yield curve--featuring
higher short-term interest rates than long-term yields--and the elevated price
of gold, a wary approach seems prudent. As such headwinds can cause
complications for stocks and added volatility for bonds, both markets will be
monitored closely. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR INCEPTION
--------- ------------ ------ ---------
Institutional Shares 8/1/02 2.46% 5.29% 6.25%
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -2.75% -0.25% 4.42%
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -3.03% -0.75% 4.43%
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 1.02% 4.29% 5.21%
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 -1.19% 1.34% 4.70%
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.67% 13.13% 14.23%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 0.81% 1.36% 3.98%
- --------------------------------------------------------------------------------
LifeModel Conservative
Target Neutral Asset Class
Index Blend 3 1.79% 3.68% 6.12%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE
INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE
ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE
ADVISOR SHARES ON AUGUST 1, 2005. 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Fifth Third Intermediate
Bond Fund 29.85%
Fifth Third Short
Term Bond Fund 19.96%
Fifth Third
Bond Fund 17.91%
Fifth Third Quality
Growth Fund 7.94%
Fifth Third Disciplined
Large Cap Value Fund 5.89%
Fifth Third High
Yield Bond Fund 4.99%
Fifth Third International
Equity Fund 3.88%
Fifth Third Large
Cap Core Fund 2.98%
Fifth Third Mid
Cap Growth Fund 2.03%
Fifth Third Small
Cap Growth Fund 1.67%
Fifth Third Multi
Cap Value Fund 1.55%
Fifth Third Small
Cap Value Fund 1.28%
Fifth Third Institutional
Money Market Fund 0.07%
0% 5% 10% 15% 20% 25% 30%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
18
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Strategic
Income Fund (Institutional Shares) gained 1.05%, outperforming its benchmark,
the Lehman Brothers Intermediate Credit Bond Index, which returned 0.64%.
As the Federal Reserve pushed its key overnight lending rate from 3.25% to 4.50%
during the period, the sentiment that it had gone too far started to emerge. In
response, investors in long-term bonds kept rates at that end of the yield curve
fairly steady. Eventually, the yield curve inverted, with short-term interest
rates higher than long-term yields. Historically, such a development usually
precedes a recession, but it's too early to tell if that will be the case this
time.
Relatively little volatility in long-term interest rates kept mortgage rates
reasonable, which reinforced solid fundamentals in real estate investment trusts
(REITs), the Fund's top performing asset class. Generally higher yields also
attracted investors to REITs, but as demand heightened, so did risks of a fall,
so the Fund adopted a more cautionary stance and booked some profits. +
Adding to gains were positions in dividend paying common stocks and preferred
stocks. The Fund padded its exposure to preferred equities during a mid-year
slump and enjoyed a recovery during the second half of the period as the rest of
the market resumed its hunt for yield. In the coming months, there's a good
chance several of the Fund's preferred holdings will be called--or retired by
the issuing entity--which would generate cash for new investments either in
other preferred stocks or elsewhere. +
Minimal price movement at the long end of the yield curve contributed to a
challenging environment for Treasury and government agency bonds, which also
experienced continued high demand from overseas buyers. Corporate bonds
struggled amid a resurgence in leveraged buyouts, which generally entail
issuance of large volumes of new corporate debt. Accounting for about 30% of the
Fund, the bond market woes diminished performance. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 1.05% 3.46% 7.27% 7.18%
- --------------------------------------------------------------------------------
Class A Shares* -4.15% -1.91% 5.78% 6.38%
- --------------------------------------------------------------------------------
Class B Shares** -4.38% -2.49% 5.94% 6.35%
- --------------------------------------------------------------------------------
Class C Shares** -0.52% 2.38% 6.15% 6.30%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.59% -0.51% 6.06% 6.52%
- --------------------------------------------------------------------------------
Lehman Brothers Intermediate
Credit Bond Index 1 0.64% 1.10% 5.96% 6.10%
- --------------------------------------------------------------------------------
Lipper Flexible Income
Funds Average 1 5.64% 10.52% 3.12% 7.62%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
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%
U.S. Government
Agencies 2.44%
Investments in
Affiliates 2.42%
U.S. Treasury
Notes 1.24%
Foreign 1.24%
Bonds
0% 5% 10% 15% 20% 25% 30% 35% 40%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
DIVIDEND GROWTH FUND
(FORMERLY KNOWN AS FIFTH THIRD SELECT STOCK FUND)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Dividend Growth
Fund (Institutional Shares) returned 2.49%, trailing its benchmark, the S&P 500
Index, which advanced 4.68%.
The Fund is primarily focused on high quality equities that offer solid growth
potential and steadily increasing dividends through all kinds of economic
cycles. Considering dividends have long accounted for a significant portion of
the S&P 500 Index's total return, we believe such an approach can play a key
role in an investor's portfolio.
Over the past six months, lower quality stocks outperformed higher quality
names, which contributed to the Fund's underperformance. Given the cyclicality
of quality trends and considering that low quality equities have outperformed
for longer than three years, the Fund is well-positioned for a shift in market
preferences.
During the period the Fund was underweight, relative to the benchmark, in the
top-performing energy sector, which hurt performance. As oil and natural gas
stocks are not historically known for reliable earnings growth or dividend
stability, the Fund missed out on profiting from the recent run-up in energy
prices. +
Ineffective stock picks in the financial services group also diminished returns
as the Fund's regional bank holdings sagged amid the flattening of the yield
curve--a situation when short-term rates increase faster than long-term
rates--and the expected negative impact on profit margins. +
Boosting performance was a solid collection of holdings within the industrials
sector, which rebounded as the economy's health proved enduring. Diversified
equipment and systems manufacturers led the way along with logistics providers.
Similar stocks within the consumer discretionary sector, which encompasses auto
part suppliers as well as the better-known media and retail companies, enhanced
gains as well. +
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 2.49% 10.31% -6.59% 3.21%
- --------------------------------------------------------------------------------
Class A Shares* -2.72% 4.65% -7.76% 2.50%
- --------------------------------------------------------------------------------
Class B Shares** -3.03% 4.26% -7.99% 2.25%
- --------------------------------------------------------------------------------
Class C Shares** 0.97% 9.25% -7.54% 2.25%
- --------------------------------------------------------------------------------
Advisor Shares*** -1.09% 6.25% -7.65% 2.43%
- --------------------------------------------------------------------------------
S&P 500 Index 1 4.68% 10.38% 0.37% 8.99%
- --------------------------------------------------------------------------------
Russell 1000(R) Index 1,2 5.04% 12.07% 0.98% 9.24%
- --------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 5.04% 10.31% -0.88% 7.58%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
2 THE FUND CHANGED ITS BENCHMARK FROM THE RUSSELL 1000(R) INDEX TO THE S&P
500 INDEX, EFFECTIVE AUGUST 1, 2005, IN ORDER TO BETTER REPRESENT THE
FUND'S INVESTMENT POLICIES FOR COMPARISON PURPOSES.
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 DIVIDEND
GROWTH FUND REFLECTS THE PERFORMANCE OF THE CLASS A SHARES OF THE PINNACLE FUND.
THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES
OF THE FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, MARCH 9, 1998 AND AUGUST 1,
2005, 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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Procter & Gamble Co. ................................................... 3.94%
Exxon Mobile Corp. ..................................................... 3.63%
Johnson & Johnson ...................................................... 3.60%
PepsiCo, Inc. .......................................................... 3.47%
General Electric Co. ................................................... 3.46%
United Technologies Corp. .............................................. 3.39%
Wells Fargo & Co. ...................................................... 3.02%
Wachovia Corp. ......................................................... 2.87%
Medtronic, Inc. ........................................................ 2.64%
Becton, Dickinson & Co. ................................................ 2.62%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
20
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Technology Fund
(Institutional Shares) gained 16.87%, outperforming its benchmark, the Merrill
Lynch 100 Technology Index, which advanced 14.24%.
The potential for an economic slowdown, caused in part by higher energy prices
and the Federal Reserve's unwavering campaign to raise short-term interest
rates, weighed on investors during the first part of the period. The economy
proved resilient in absorbing shocks to the system such as Hurricane Katrina,
sentiment improved. Tepid inflationary developments and a slow but sure
expansion of capital spending levels further bolstered the optimism.
Within the information technology sector, good earnings reports pleased
investors, who continued to favor companies exhibiting solid top-line growth and
expanding margins. Dominant themes arose in wireless-related, service
outsourcing and Internet advertising industries.
The Fund was lifted by an overweight stake, relative to the benchmark, in the
semiconductor space. Underinvestment over the past few years in chip
manufacturing equipment resulted in current capacity utilization running at
historically high levels, which sparked expectations of renewed investment --and
stock gains. Select software companies appealing to well-defined target markets
also aided performance, along with biotechnology concerns with treatments
addressing large needs in late stages of development. +
Although Internet advertising stocks took off during the period, the Fund
avoided the well-publicized names due to concerns over valuation and
sustainability of growth rates--a decision that hampered returns. Ineffective
stock selection in the medical device field also diminished gains. +
Unlike broader market indexes, sector specific benchmarks can be quirky. For
example, the Fund's benchmark, the Merrill Lynch Technology Index, makes
weighting and composition changes in December, which can directly affect
year-end performance. Regardless of the benchmark's moves, the Fund remains
invested in 40-60 stocks in various areas of the information technology and
healthcare technology fields and looks for companies with solid growth rates,
reasonable valuations and little correlation to each other. +
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE
DATE 6 MONTH ++++ 1 YEAR 5 YEAR INCEPTION
--------- ------------ ------ ------ ---------
Institutional Shares 6/5/00 16.87% 26.52% -6.76% -8.98%
- --------------------------------------------------------------------------------
Class A Shares* 6/5/00 10.92% 19.96% -7.95% -10.02%
- --------------------------------------------------------------------------------
Class B Shares** 6/5/00 11.24% 20.23% -8.08% -10.01%
- --------------------------------------------------------------------------------
Class C Shares** 6/5/00 15.17% 25.31% -7.72% -9.89%
- --------------------------------------------------------------------------------
Advisor Shares*** 6/5/00 12.82% 21.91% -7.85% -9.96
- --------------------------------------------------------------------------------
Merrill Lynch 100
Technology Index 1 14.24% 21.53% -7.23% -10.44%
- --------------------------------------------------------------------------------
Lipper Science and
Technology Funds
Average 1 12.23% 19.76% -9.55% -11.80%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
First Data Corp. ....................................................... 3.30%
Information Corp. ...................................................... 2.54%
Freescale Semiconductor, Inc., Class A ................................. 2.52%
Red Hat, Inc. .......................................................... 2.40%
Varian Semiconductor Equipment Associates, Inc. ........................ 2.39%
Advanced Energy Industries, Inc. ....................................... 2.38%
Palm, Inc. ............................................................. 2.34%
QUALCOMM, Inc. ......................................................... 2.32%
Quest Software, Inc. ................................................... 2.19%
BEA Systems, Inc. ...................................................... 2.15%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third International
Equity Fund (Institutional Shares) advanced 20.58%, besting its benchmark, the
MSCI EAFE Index, which gained 18.31%.
The leading performer on the globe during the period was Japan, which advanced
39% behind a strengthening economy. Economic growth estimates, purchasing
manager surveys, industrial production, wages, machinery orders and inflation
are all rising in Japan, which contributed to a sharp rise in the equity
markets. Holding an overweight stake, relative to the benchmark, in Japanese
stocks, the Fund benefited from the rally. +
A larger-than-the-benchmark stake in emerging markets, including Brazil, Mexico,
Russia and Turkey, further enhanced returns, as did an underweight position in
the United Kingdom, where investors contended with mixed economic news. +
Detracting from relative performance were overweight positions in Hong Kong and
Singapore. +
From a sector standpoint, expanding international demand contributed to a 33%
rise in the materials group. The industrials sector, which supplies the booming
materials industry, advanced 28%. Among laggards, the telecommunication services
sector was the worst, falling 9%. +
By the period's end, a wary eye had been cast on heightened valuations in Japan
while sentiment about Europe started to pick up. Although reports such as higher
economic growth projections conflicted with poor employment and retail sales
figures in Germany, such conditions suggested European central bankers would
refrain from any aggressive interest rate moves. Similarly, various data out of
the U.K. suggest the Bank of England will be reluctant to tinker much with rates
as well.
Of course, a large unknown remains the underlying health of the U.S. economy and
corporate earnings, which survived the shock of Hurricane Katrina, but may soon
have to contend with the effects of a slowing housing market. Market volatility
is clearly increasing, which suggests a positive but watchful mindset is
prudent.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 20.58% 24.03% 6.00% 6.84%
- --------------------------------------------------------------------------------
Class A Shares* 14.32% 17.52% 4.74% 6.14%
- --------------------------------------------------------------------------------
Class B Shares** 14.97% 17.74% 4.61% 5.81%
- --------------------------------------------------------------------------------
Class C Shares** 19.02% 22.86% 4.93% 5.92%
- --------------------------------------------------------------------------------
Advisor Shares*** 16.42% 19.53% 4.88% 6.08%
- --------------------------------------------------------------------------------
MSCI EAFE Index 1 18.31% 22.76% 5.82% 6.43%
- --------------------------------------------------------------------------------
Lipper International
Large-Cap Core
Funds Average 1 18.98% 23.53% 3.45% 6.60%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
BP PLC ................................................................. 1.75%
Toyota Motor Corp. ..................................................... 1.65%
Ishares MSCI Hong Kong Index Fund ...................................... 1.55%
Glaxosmithkline PLC .................................................... 1.16%
Total Fina SA .......................................................... 1.15%
Mitisubishi UFJ Holdings, Inc. ......................................... 1.10%
Royal Dutch Shell PLC, A Shares ........................................ 1.08%
HSBC Holdings PLC ...................................................... 1.05%
Novartis AG, (REG) ..................................................... 1.02%
Nestle ................................................................. 0.94%
+ Portfolio composition is subject to change.
22
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Bond Fund
(Institutional Shares) returned 0.78%, slightly trailing its benchmark, the
Lehman Brothers Aggregate Bond Index, which advanced 0.84%.
The Federal Reserve spent the period continuing to implement its short-term
interest rate policy, which resulted in five quarter-point rate hikes. Yet while
the key overnight rate climbed from 3.25% to 4.50%, yields in the long-term bond
market changed little, which resulted in a flattening of the yield curve.
With little or negative price movement on most bonds, fixed income investors
spent the period seeking better yielding issues, as the interest paid generally
drove each investment's total return. Few were willing to take large risks,
however, as higher quality issues outperformed lower quality bonds. High yield
corporate bonds especially struggled as leveraged buyout activity picked up.
Within the Fund, A-rated bonds from issuers such as banks and financial services
companies sagged with the rest of the corporate group. Also hurting performance
was an underweight, relative to the benchmark, in government agency debentures,
which outperformed Treasuries. Given the rally and the resulting rich valuations
in the group, the Fund refrained from adding to its agency position during the
period. +
Conversely, the Fund upped its stake in commercial mortgage backed securities
(CMBS), which are supported by solid fundamentals such as high occupancy rates
and historically low default levels. Offering more yield than Treasuries and
carrying high quality ratings, CMBS enhanced the Fund's returns over the past
six months. +
Contributing most significantly to performance were asset backed securities
(ABS) holding home equity loans. By the period's end, the Fund's focus had
narrowed to emphasize ABS issues comprised of seasoned home equity loans--those
made on residences prior to the surge in home values over the past three-plus
years. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 0.78% 1.50% 4.83% 5.26%
- --------------------------------------------------------------------------------
Class A Shares* -4.20% -3.58% 3.55% 4.52%
- --------------------------------------------------------------------------------
Class B Shares** -4.62% -4.27% 3.43% 4.21%
- --------------------------------------------------------------------------------
Class C Shares** -0.70% 0.56% 3.78% 4.20%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.86% -2.30% 3.61% 4.38%
- --------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1 0.84% 1.80% 5.53% 6.10%
- --------------------------------------------------------------------------------
Lipper Corporate Debt
Funds A Rated Average 1 0.49% 1.28% 5.06% 5.39%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Corporate 54.42%
Bonds
U.S. Government 35.98%
Agencies
Commercial 4.02%
Paper
U.S. Treasury 1.65%
Obligations
Foreign 1.53%
Bonds
Investments in 1.22%
Affiliates
Short-Term Securities Held as 1.18%
Collateral for Securities Lending
0% 5% 10% 20% 30% 40% 50% 60%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Intermediate
Bond Fund (Institutional Shares) returned 0.75%, narrowly trailing its
benchmark, the Lehman Brothers Intermediate Government/Credit Bond Index, which
gained 0.81%.
The fixed income market behaved in a counterintuitive fashion during the period,
which proved challenging. Maintaining a vigilant stance against inflation, the
Federal Reserve gradually moved its short-term interest rate from 3.25% to 4.50%
with five quarter-point adjustments. Believing that the Fed had inflation
contained, investors in longer maturities generally stood by their positions.
These circumstances caused short-term rates to rise faster than longer term
rates and resulted in an inverted yield curve, with 2-year maturities yielding
more than 10-year issues.
Relatively higher quality bonds outperformed lower quality issues--those rated
BBB--during the period. Specifically within the corporate sector, lower rated
issues struggled amid increasing leveraged buyout (LBO) activity. Some of the
Fund's BBB holdings suffered from LBO fears, which detracted from performance.
With no exposure to General Motors and Ford, however, the Fund avoided some
underperformance attributed to both companies' extended woes. +
Contributing positively were holdings in asset backed securities (ABS),
commercial mortgage backed securities (CMBS) and mortgage backed securities
(MBS). These holdings offered more yield than the benchmark's corporate sector,
at a higher quality, which proved essential in a period when bond prices were
little changed. Specifically among MBS issues, the Fund benefited from holding
positions containing hybrid adjustable rate mortgages. +
At the period's close, the Fund held a significant exposure to ABS, CMBS and MBS
issues, which offered better relative values versus other sectors of the
benchmark. The Fund was also underweight, relative to the benchmark, in
Treasuries and government agency bonds, which offered relatively poor values,
and in corporate issues, which continue to be fully priced. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 0.75% 1.18% 4.35% 4.91%
- --------------------------------------------------------------------------------
Class A Shares* -2.95% -2.60% 3.37% 4.28%
- --------------------------------------------------------------------------------
Class B Shares** -4.31% -3.92% 3.25% 3.99%
- --------------------------------------------------------------------------------
Class C Shares** -0.86% 0.14% 3.29% 3.84%
- --------------------------------------------------------------------------------
Advisor Shares*** -1.40% -1.19% 3.44% 4.19%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 0.81% 1.37% 5.15% 5.71%
- --------------------------------------------------------------------------------
Lipper Intermediate
Investment Grade Debt
Funds Average 1 0.63% 1.41% 4.93% 5.31%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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, CLASS C AND ADVISOR SHARES
WERE INITIALLY OFFERED ON OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST, 1,
2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR
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, 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.
FUND HOLDINGS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Corporate 74.40%
Bonds
U.S. Government
Agencies 17.71%
Short-Term Securities Held as 4.97%
Collateral for Securities Lending
U.S. Treasury
Obligations 2.03%
Investments in
Affiliates 0.71%
Foreign
Bonds 0.18%
0% 10% 20% 30% 40% 50% 60% 70% 80%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
24
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Short Term Bond
Fund (Institutional Shares) returned 1.23%, narrowly trailing its benchmark, the
Merrill Lynch 1-3 Year Government/Corporate Bond Index, which advanced 1.28%.
The Federal Reserve kept the short-term bond market busy during the period as it
raised its overnight rate from 3.25% to 4.50% with five quarter-point moves.
Yields on the 2-year note, which are less correlated to the central bank's
activity, rose about 0.50%, which contributed to a flattening of the yield
curve--which describes conditions when longer term rates don't increase as
quickly as short-term yields.
Two technical maneuvers designed to reduce the impact of such developments aided
performance. The Fund maintained a slightly shorter duration--a defense against
short-term rate hikes--than the benchmark and skewed its holdings toward the
shortest and longest ends of the relevant bond spectrum--a strategy known as a
barbell, which minimizes exposure to the less-active middle ground. By the
period's end, in anticipation of an end to the Fed's rate-hike run, the Fund's
duration had been adjusted to a nearly neutral stance and held more equal
representation along the entire yield curve. +
The Fund remained underweight, relative to the benchmark, in overseas bonds, a
position which diminished returns during the period. +
Less exposure than the Index to the automotive industry, namely the struggling
General Motors and Ford, enhanced returns, as did a large participation in the
commercial mortgage backed securities (CMBS) and the mortgage backed securities
(MBS) markets. Notable gains came from high quality, well-diversified CMBS
issues and MBS bonds rooted in three- and five-year adjustable rate mortgages. +
The most significant lift came from asset backed securities comprised of home
equity loans. To lock some resulting gains, the Fund sold off such issues used
in combination with first mortgages to purchase homes, which became riskier. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 1.23% 1.78% 3.16% 4.36%
- --------------------------------------------------------------------------------
Class A Shares* -2.46% -1.91% 2.26% 3.82%
- --------------------------------------------------------------------------------
Class C Shares** -0.32% 0.79% 2.14% 3.32%
- --------------------------------------------------------------------------------
Advisor Shares*** -1.03% -0.72% 2.24% 3.64%
- --------------------------------------------------------------------------------
Merrill Lynch 1-3 Year
Government/Corporate
Bond Index 1 1.28% 2.00% 3.83% 4.96%
- --------------------------------------------------------------------------------
Lipper Short Investment
Grade Debt Funds
Average 1 1.17% 1.87% 3.24% 4.38%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 AND ADVISOR SHARES WERE INITIALLY
OFFERED ON AUGUST 1, 2003 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE
FIGURES FOR CLASS C AND ADVISOR 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 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.
FUND HOLDINGS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
Corporate 60.45%
Bonds
U.S. Government
Agencies 22.87%
U.S. Treasury
Obligations 7.09%
Short-Term Securities Held as
Collateral for Securities Lending 5.94%
Investments in
Affiliates 2.88%
Foreign
Bonds 0.46%
Municipal
Bonds 0.31%
0% 10% 20% 30% 40% 50% 60% 70% 80%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third U.S. Government
Bond Fund (Institutional Shares) gained 1.10%, topping its benchmark, the Lehman
Brothers Intermediate Government Bond Index, which returned 0.92%.
Modest returns were the norm for intermediate and longer-term issues, which
moved little during the period. Despite continually climbing short-term yields,
driven by the Federal Reserve's rate-hike campaign, the absence of strong
inflationary evidence kept a lid on moves at the long end.
Helping prevent a breakout was the continuation of strong overseas demand for
U.S. debt. Relative to bonds issued by governments in Japan, Germany and other
developed economies, U.S. government and agency issues offer yields 100-300
basis points (100 basis points equal 1.00%) higher than comparable foreign
bonds, which is attractive worldwide.
Within such a low-volatility environment, higher yields played an essential role
in the Fund's outperformance. Uniquely structured bonds tend to be the best
place to capture slightly better returns and the Fund benefited from investments
in Z-bonds and digital two-tiered index bonds (TIBS). As part of a
collateralized mortgage obligation (CMO) offering, which divides a group of
mortgage-backed securities into different issues with varied features, Z-bonds
are the last issue paid off. To compensate investors for their patience, the
issues generally carry a higher yield. +
The relatively new digital TIBS pay an above-market yield as long as interest
rates remain below a stated level. If rates exceed that level, the issue is
redeemed, but since the threshold is high, considering current conditions, the
Fund has comfortably enjoyed the higher yield. +
Any CMO issue carries prepay risk, or the potential that the underlying
mortgages will be paid off and force redemption of the bond. While the
composition of any CMO bond is always examined, surprises can happen and a few
prepaid issues weighed on the Fund's returns during the period. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S
PORTFOLIO AND NOT THE FUNDS SHARES.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 1.10% 1.64% 4.06% 4.71%
- --------------------------------------------------------------------------------
Class A Shares* -3.81% -3.46% 2.81% 4.02%
- --------------------------------------------------------------------------------
Class C Shares** -0.41% 0.62% 3.02% 3.76%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.41% -2.10% 2.90% 3.94%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government Bond Index 1 0.92% 1.55% 4.54% 5.41%
- --------------------------------------------------------------------------------
Lipper Short
Intermediate U.S.
Government Bond
Funds Average 1 0.71% 1.03% 3.66% 4.60%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 AND ADVISOR SHARES WERE INITIALLY
OFFERED ON APRIL 24, 1996 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE
FIGURES FOR CLASS C AND ADVISOR 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 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.
FUND HOLDINGS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
Fannie Mae 27.14%
Freddie Mac 22.63%
Government National
Mortgage Association 11.80%
Financing
Corporation 10.90%
Federal Home
Loan Bank 7.86%
U.S. Treasury
Obligations 5.96%
Small Business
Administration 5.63%
Investments
in Affiliates 4.82%
Tennessee
Valley Authority 1.70%
Federal Farm
Credit Bank 1.56%
0% 5% 10% 15% 20% 25% 30%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Municipal Bond
Fund (Institutional Shares) returned 0.87%, trailing its benchmark, the Lehman
Brothers Municipal Bond Index, which returned 1.33%.
Much like U.S. Treasuries, the municipal bond yield curve flattened during the
period as short-term rates rose and long-term yields fell. The activity at the
short end of the curve stemmed from the Federal Reserve's continued campaign to
boost its key overnight borrowing rate. The more measured move at the long end
of the curve reflected the fixed income market's reservations about the
underlying health of the U.S. economy.
Municipalities generally operated on solid financial footing during the period
and took advantage of historically low rates to bring more than $400 billion in
new issues to market during 2005. A significant portion of the issuance
represented pre-refunded bonds, which allowed issuers to retire higher yielding
debt in favor of new issues with better terms.
The focus by issuers on reducing costs through bonds with lower yields left
investors hungry for returns. Many found them in tobacco-related bonds, which
received a boost from litigation that eased cigarette makers' liabilities. As
these high volatility, low quality issues don't fit the Fund's investment
criteria, it held no tobacco-related issues, which affected returns, relative to
the benchmark. +
Also affecting performance was the Fund's short duration, relative to the
benchmark, which reduced the Fund's exposure to the long end of the curve, where
bond prices held up better than at the short end. +
Higher yielding issues such as those subject to the alternative minimum tax
aided performance during the period. Additionally, the Fund was lifted by the
purchase of bonds such as insured college issues in the 20-year portion of the
yield curve. +
By the period's end, the Fund was exploring higher yielding investments that
carried slightly lower quality characteristics but would have minimal effect on
the Fund's average credit rating. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 0.87% 1.62% 4.56% 4.95%
- --------------------------------------------------------------------------------
Class A Shares* -4.01% -3.46% 3.29% 4.16%
- --------------------------------------------------------------------------------
Class B Shares** -4.39% -4.07% 3.19% 3.89%
- --------------------------------------------------------------------------------
Class C Shares** -0.60% 0.56% 3.51% 3.89%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.67% -2.16% 3.38% 4.09%
- --------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index 1 1.33% 2.83% 5.44% 5.66%
- --------------------------------------------------------------------------------
Lipper General Municipal
Debt Funds Average 1 1.09% 2.35% 4.69% 4.71%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 JANUARY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
AAA 71.30%
AA 19.83%
A 1.78%
BBB 6.43%
Net Cash and Equivalents 0.66%
0% 10% 20% 30% 40% 50% 60% 70% 80%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Intermediate
Municipal Bond Fund (Institutional Shares) returned 0.73%, compared to its
benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which
gained 1.12%.
Much like U.S. Treasuries, the municipal bond yield curve flattened during the
period as short-term rates rose and long-term yields fell. The activity at the
short end of the curve stemmed from the Federal Reserve's continued campaign to
boost its key overnight borrowing rate. The more measured move at the long end
of the curve reflected the fixed income market's reservations about the
underlying health of the U.S. economy.
The flattening occurred within the intermediate portion of the curve as well,
with 10-year yields increasing much slower than 3-year rates. As the Fund was
positioned with a short duration, relative to the benchmark, it was more
concentrated in the portion of the market where yields moved higher and bond
prices, which move in an opposite fashion, fell more, which affected returns. +
Higher yielding issues such as those subject to the alternative minimum tax
(AMT) boosted performance during the period. The future of the AMT remains
unclear and since it's highly unlikely Congress will take up the issue during an
election year, the bonds continue to offer a modest premium. +
Additionally, the Fund experienced a lift from slightly lower quality holdings,
such as healthcare issues that provided additional yield without compromising
much credit quality. +
In general, the modest steps down the quality spectrum enhanced the Fund's
potential yield with minimal impact on its average AA rating. +
INVESTMENT RISK CONSIDERATIONS
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 0.73% 1.08% 3.64% 4.24%
- --------------------------------------------------------------------------------
Class A Shares* -2.78% -2.62% 2.64% 3.62%
- --------------------------------------------------------------------------------
Class B Shares** -4.20% -3.92% 2.58% 3.34%
- --------------------------------------------------------------------------------
Class C Shares** -0.76% 0.04% 2.61% 3.19%
- --------------------------------------------------------------------------------
Advisor Shares*** -1.40% -1.28% 2.73% 3.52%
- --------------------------------------------------------------------------------
Lehman Brothers
Quality Intermediate
Municipal Bond Index 1 1.12% 1.58% 4.52% 4.94%
- --------------------------------------------------------------------------------
Lipper Intermediate Municipal
Debt Funds Average 1 0.98% 1.43% 4.14% 4.52%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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, CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001,
OCTOBER 29, 2001 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR
CLASS B, CLASS C AND ADVISOR 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, 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.
BOND QUALITY RATINGS AS OF JANUARY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
AAA 62.83%
AA 20.63%
A 6.36%
BBB 9.32%
Net Cash and Equivalents 0.15%
Not Rated 0.71%
0% 10% 20% 30% 40% 50% 60% 70% 80%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
28
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Ohio Municipal
Bond Fund (Institutional Shares) returned 0.76%, compared to its benchmark, the
Lehman Brothers Quality Intermediate Municipal Bond Index, which gained 1.12%.
Much like U.S. Treasuries, the municipal bond yield curve flattened during the
period as short-term rates rose and long-term yields fell. The activity at the
short end of the curve stemmed from the Federal Reserve's continued campaign to
boost its key overnight borrowing rate. The more measured move at the long end
of the curve reflected the fixed income market's reservations about the
underlying health of the U.S. economy.
Municipalities generally operated on solid financial footing during the period
and took advantage of historically low rates to bring more than $400 billion in
new issues to market during 2005. A significant portion of the issuance
represented pre-refunded bonds, which allowed issuers to retire higher yielding
debt in favor of new issues with better terms. Specifically within Ohio, about
$11.5 billion worth of new issues hit the market in 2005, a 9% increase over
2004 levels. +
Strong demand from hedge funds and other non-traditional municipal bond
investors effectively absorbed the healthy supply of new bonds, which helped
tame long-term rates. Conditions diminished returns from the Fund, which
maintained a short duration, relative to its benchmarks. The strategy is
designed to combat rising short-term interest rates but is generally ineffective
when the curve flattens. +
The Fund's higher yielding holdings boosted performance, including a statewide
solid waste agency issue and insured bonds issued by Ohio colleges and
universities. +
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST
IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 0.76% 0.98% 3.65% 3.97%
- --------------------------------------------------------------------------------
Class A Shares* -4.07% -4.00% 2.41% 3.29%
- --------------------------------------------------------------------------------
Class B Shares** -4.67% -4.76% 2.25% 2.87%
- --------------------------------------------------------------------------------
Class C Shares** -0.75% -0.03% 2.62% 3.05%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.59% -2.66% 2.49% 3.20%
- --------------------------------------------------------------------------------
Lehman Brothers
Quality Intermediate
Municipal Bond Index 1 1.12% 1.58% 4.52% 4.94%
- --------------------------------------------------------------------------------
Lipper Ohio
Intermediate Municipal
Debt Funds Average 1 0.68% 0.77% 3.38% 3.93%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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 B, CLASS C AND ADVISOR SHARES WERE
INITIALLY OFFERED ON OCTOBER 11, 2000, APRIL 24, 1996 AND AUGUST 1, 2005,
RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR 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 , 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.
BOND QUALITY RATINGS AS OF JANUARY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
AAA 45.93%
AA 2.58%
A 10.90%
BBB 9.48%
Net Cash and Equivalents 1.11%
0% 10% 20% 30% 40% 50%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
29
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MICHIGAN MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2006, the Fifth Third Michigan
Municipal Bond Fund (Institutional Shares) produced a total return of 0.68%,
compared to its benchmark, the Lehman Brothers 1-5 Year Municipal Bond Index,
gained 0.94%.
Much like U.S. Treasuries, the municipal bond yield curve flattened during the
period as short-term rates rose and long-term yields fell. The activity at the
short end of the curve stemmed from the Federal Reserve's continued campaign to
boost its key overnight borrowing rate. The more measured move at the long end
of the curve reflected the fixed income market's reservations about the
underlying health of the U.S. economy.
Among Michigan municipal bond investors, the lower overall rate environment
sparked interest in higher yielding issues. Such demand aided the performance of
the Fund, which held a solid position in higher yielding paper, including select
housing authority, hospital and alternative minimum tax (AMT) eligible bonds.
While these positions carried slightly lower quality ratings, the Fund
maintained an average AA quality. +
Otherwise affecting performance was the Fund's slightly larger exposure to lower
yielding cash-related investments early in the period. +
The volume of new issues ran high in Michigan during the period, as it did
throughout the U.S. Such conditions allowed for some flexibility in building the
portfolio while marketwide demand remained fairly strong.
Michigan's economic footing became less certain during the period as conditions
at giant automakers General Motors and Ford continued to deteriorate. Further
negative developments from the auto industry could multiply the strains on the
state's fiscal health, which is already struggling with budget woes and
above-average unemployment. That said, the ramifications of any event play out
differently across the state, and it's essential to weigh all of the potential
impacts on a municipal issue before making an investment decision.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST
IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
AVERAGE ANNUAL TOTAL RETURNS AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
6 MONTH ++++ 1 YEAR 5 YEAR 10 YEAR
------------ ------ ------ -------
Institutional Shares 0.68% 0.90% 2.89% 3.59%
- --------------------------------------------------------------------------------
Class A Shares* -4.18% -4.10% 1.76% 2.94%
- --------------------------------------------------------------------------------
Class B Shares** -4.79% -5.04% 1.50% 2.56%
- --------------------------------------------------------------------------------
Class C Shares** -0.83% -0.17% 1.86% 2.56%
- --------------------------------------------------------------------------------
Advisor Shares*** -2.81% -2.81% 1.73% 2.76%
- --------------------------------------------------------------------------------
Lehman Brothers 1-5 Year
Municipal Bond Index 1 0.94% 1.30% 3.59% 4.23%
- --------------------------------------------------------------------------------
Lipper Other States Short-
Intermediate Municipal Debt
Funds Average 1 0.79% 1.50% 3.59% 3.79%
- --------------------------------------------------------------------------------
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%
FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
++++ NOT ANNUALIZED.
1 PLEASE REFER TO THE GLOSSARY OF TERMS FOR ADDITIONAL INFORMATION.
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, CLASS C
AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001, OCTOBER 29, 2001
AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C
AND ADVISOR 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, 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.
BOND QUALITY RATINGS AS OF JANUARY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
[BAR CHART]
AAA 62.12%
AA 22.53%
A 8.17%
BBB 5.00%
Net Cash and Equivalents 1.66%
Not Rated 0.52%
0% 10% 20% 30% 40% 50% 60% 70% 80%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
30
GLOSSARY OF TERMS
DOW JONES WILSHIRE 5000 INDEX measures the performance of all U.S. headquartered
equity securities with readily available price data.
LEHMAN BROTHERS AGGREGATE BOND INDEX is a market value-weighted performance
benchmark for investment-grade fixed-rate debt issues, including government,
corporate, asset-backed, and mortgage-backed securities, with maturities of at
least one year.
LEHMAN BROTHERS INTERMEDIATE CREDIT BOND INDEX includes all publicly issued,
fixed rate, nonconvertible investment grade dollar-denominated, SEC-registered
corporate debt. Included among Yankees is debt issued or guaranteed by foreign
sovereign governments, municipalities, governmental agencies, or international
agencies.
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX is comprised of all publicly
issued, non-convertible domestic debt of the U.S. government or any agency
thereof, or any quasi-federal corporation and of corporate debt guaranteed by
the U.S. government. Only notes and bonds with minimum outstanding principal of
$1 million and minimum maturity of one year and maximum maturity of ten years
are included.
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX is composed of
investment grade corporate debt issues as well as debt issues of U.S. government
agencies and the U.S. Treasury agencies. The debt issues within the index all
maintain maturities within a range of one to ten years.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is broad market performance benchmark for
the tax-exempt bond market, the bonds included in this index must have a minimum
credit rating of at least Baa. They must have an outstanding par value of at
least $3 million and be issued as part of a transaction of at least $50 million.
The index includes both zero coupon bonds and bonds subject to the Alternative
Minimum tax.
LEHMAN BROTHERS 1-5 YEAR MUNICIPAL BOND INDEX is representative of short term
municipal bonds with a maturity between one and six years
LEHMAN BROTHERS QUALITY INTERMEDIATE MUNICIPAL BOND INDEX is generally
representative of intermediate term municipal bonds with a maturity between two
and twelve years.
LIPPER BALANCED FUNDS AVERAGE consists of funds whose primary objective is to
conserve principal by maintaining at all times a balanced portfolio of both
stocks and bonds. Typically, the stock/bond ratio ranges around 60%/40%.
LIPPER CORPORATE DEBT FUNDS A RATED AVERAGE consists of fund that invests at
least 65% of their assets in corporate debt issues rated "A" or better or
government issues.
LIPPER EQUITY INCOME FUNDS AVERAGE consists of funds that seek relatively high
current income and growth of income through investing 60% or more of its
portfolio in equities.
LIPPER FLEXIBLE INCOME FUNDS AVERAGE consists of funds that emphasizes income
generation by investing at least 85% of their assets in debt issues and
preferred and convertible securities. Common stocks and warrants cannot exceed
15%.
LIPPER GENERAL MUNICIPAL DEBT FUNDS AVERAGE consists of fund that invests at
least 65% of their assets in municipal debt issues in the top four credit
ratings.
LIPPER INTERNATIONAL FUNDS AVERAGE consists of funds that invests their assets
in securities with primary trading markets outside of the United States.
LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS AVERAGE consists of funds that
invests at least 65% of their assets in investment grade debt issues (rated in
top four grades) with dollar-weighted average maturities of five to ten years.
LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE consists of fund that invest in
municipal debt issues with dollar-weighted average maturities of five to ten
years.
LIPPER LARGE-CAP CORE FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) greater than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in
the companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio and three-year sales-per-share
growth value, compared to the S&P 500 Index.
31
GLOSSARY OF TERMS
LIPPER MID-CAP GROWTH FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P SuperComposite 1500 Index. Mid-cap growth funds typically have an
above-average price-to-earnings ratio, price-to-book ratio and three-year
sales-per-share growth value, compared to the S&P MidCap(R) 400 Index.
LIPPER MULTI-CAP VALUE FUNDS AVERAGE consists of funds that, by portfolio
practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap funds will generally have between 25%
to 75% of their assets invested in companies with market capitalizations (on a
three-year weighted basis) above 300% of the dollar-weighted median market
capitalization of the S&P MidCap(R) 400 Index. Multi-Cap Value funds seek
long-term growth of capital by investing in companies that are considered to be
undervalued relative to a major unmanaged stock index based on price-to-current
earnings, book value, asset value or other factors. These funds will normally
have a below-average price-to-earnings ratio, price-to-book ratio and three-year
earnings growth figure, compared to the U S diversified multi-cap funds universe
average.
LIPPER OHIO INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE consists of funds that
invests at least 65% of their assets in municipal debt issues that are exempt
from taxation in Ohio, with dollar-weighted average maturities of five to ten
years.
LIPPER OTHER STATES SHORT-INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE consists of
funds that invest in municipal debt issues with dollar-weighted average
maturities of five to ten years and are exempt from taxation on a specified city
or state basis.
LIPPER S&P 500(R) INDEX OBECTIVE FUNDS AVERAGE consists of funds that are
passively managed, limited-expense (management fee no higher than 0.50%) fund
designed to replicate the performance of the S&P 500 Index on a reinvested
basis.
LIPPER SCIENCE AND TECHNOLOGY FUNDS AVERAGE consists of funds that invests at
least 65% of their equity portfolio in science and technology stocks.
LIPPER SHORT INVESTMENT GRADE DEBT FUNDS AVERAGE consists of funds that invest
at least 65% of their assets in investment grade debt issues (rated in top four
grades) with dollar-weighted average maturities of one to five years.
LIPPER SHORT INTERMEDIATE U.S. GOVERNMENT BOND FUNDS AVERAGE consists of funds
that invest at least 65% of their assets in securities issued or guaranteed by
the U.S. government, its agencies or its instrumentalities, with dollar-weighted
average maturities of one to five years.
LIPPER SMALL-CAP CORE FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of the
S&P SuperComposite 1500 Index. Small-cap core funds have more latitude in the
companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P SmallCap(R) 600 Index.
LIPPER SMALL-CAP GROWTH FUNDS AVERAGE consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of the
S&P SuperComposite 1500 Index. Small-cap growth funds typically have an
above-average price-to-earnings ratio, price-to-book ratio, and three-year
sales-per-share growth value,compared to the S&P SmallCap 600 Index.
LIPPER SMALL-CAP VALUE FUNDS AVERAGE consists of funds that by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of S&P
SuperComposite 1500 Index. Small-cap value funds typically have a below-average
price-to-earnings ratio, price-to-book ratio and three-year sales-per-share
growth value, compared to the S&P SmallCap 600 Index.
MERRILL LYNCH 100 TECHNOLOGY INDEX is a equal-dollar weighted index of 100
stocks designed to measure the performance of a cross-section of large, actively
traded technology stocks and American Depositary Receipts.
MERRILL LYNCH 1-3 YEAR GOVERNMENT/CORPORATE BOND INDEX tracks the trading of
short-term U.S. government securities and short-term domestic investment-grade
corporate bonds with maturities between 1 and 2.99 years.
32
GLOSSARY OF TERMS
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST
(EAFE) INDEX is a market capitalization-weighted equity index comprising 20 of
the 48 countries in the MSCI universe and representing the developed world
outside of North America. Each MSCI country index is created separately, then
aggregated, without change, into regional MSCI indices. EAFE performance data is
calculated in U.S. dollars and in local currency.
RUSSELL 1000(R) INDEX measures the performance of 1,000 largest companies in the
Russell 3000(R) Index, which represents approximately 92% of the total market
capitalization of the Russell 3000(R) Index.
RUSSELL 1000(R) GROWTH INDEX measures the performance of 1,000 securities found
in the Russell universe with higher price-to-book ratios and higher forecasted
growth values.
RUSSELL 1000(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.
RUSSELL 2000(R) GROWTH INDEX is comprised of the securities in the Russell
2000(R) Index with a greater-than-average growth orientation. Companies in this
index tend to exhibit higher price-to-book and price-to-earnings ratios.
RUSSELL 2000(R) VALUE INDEX is comprised of the securities in the Russell
2000(R) Index with a less-than-average growth orientation. Companies in this
index generally have low price-to-book and price-to-earnings ratios.
RUSSELL 3000(R) VALUE INDEX measures the performance of the 3,000 largest U.S.
companies based on total market capitalization, which represents approximately
98% of the investable U.S. equity market.
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.
RUSSELL MIDCAP(R) GROWTH INDEX measures the performance of those securities
found in the Russell MidCap universe with higher price-to-book ratios and higher
forecasted growth values. The stocks are also members of the Russell 1000(R)
Growth Index.
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.
STANDARD & POOR'S 500 INDEX ("S&P 500" INDEX) is comprised of 500 selected
common stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
The above indices are unmanaged and do not reflect the deduction of fees
associated with a mutual fund such as investment management and fund accounting
fees. However, the Lipper Average and the Fund's performance reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, althought they can invest in its underlying securities or
funds.
THE FIFTH THIRD LIFEMODEL BLENDED INDICES are hypothetical unmanaged indices
comprised of a percentage of the Wilshire Index and Lehman Brothers Intermediate
Government/Credit Bond Index. The Blended Index was created by Fifth Third Asset
Management, Inc. The Fund will not necessarily maintain a similar weighting at
all times but will invest within a range of stock, bond, and money market funds
as described in the prospectus. Below is a table which indicates the percentage
breakdown for each Fund.
LEHMAN BROTHERS INTERMEDIATE
WILSHIRE 5000 INDEX GOVERNMENT/CREDIT BOND INDEX
- ------------------------------------------------------------------------------------------------------
Fifth Third LifeModel Aggressive Fund 90% 10%
Fifth Third LifeModel Moderately Aggressive Fund 70% 30%
Fifth Third LifeModel Moderate Fund 50% 50%
Fifth Third LifeModel Moderately Conservative Fund 40% 60%
Fifth Third LifeModel Conservative Fund 20% 80%
33
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34
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (96.8%)
A.S.V., Inc. * (g) 161,900 $ 5,343
Affiliated Managers Group, Inc. * (g) 30,000 2,784
Akamai Technologies, Inc. * (g) 180,900 3,950
Allion Healthcare, Inc. * (g) 153,110 2,327
American Medical Systems Holdings, Inc. * 172,500 3,908
American Railcar Industries, Inc. * (g) 7,649 229
aQuantive, Inc. * (g) 32,500 845
ArthroCare Corp. * (g) 52,100 2,334
Avid Technology, Inc. * 27,800 1,381
Basic Energy Services, Inc. * 142,109 3,986
Beacon Roofing Supply, Inc. * 45,000 1,494
Benchmark Electronics, Inc. * (g) 68,800 2,513
Bucyrus International, Inc. 53,800 3,292
CARBO Ceramics, Inc. 34,400 2,318
Carpenter Technology Corp. 36,200 3,278
Cash Systems, Inc. * (g) 183,100 1,620
Centene Corp. * 82,500 2,169
Children's Place Retail Stores, Inc. * 78,100 3,420
Core Laboratories N.V. * 79,900 3,562
DearlerTrack Holdings, Inc. * 18,905 377
Denbury Resources, Inc. * 106,800 3,179
East-West Bancorp., Inc. 49,900 1,842
Epicor Software Corp. * 199,400 2,652
F5 Networks, Inc. * 23,400 1,514
First Cash Financial Services, Inc. * 123,500 4,311
FormFactor, Inc. * 105,000 3,131
Gardner Denver, Inc. * 27,500 1,455
GEN-Probe, Inc. * 41,500 2,093
General Cable Corp. * 184,800 4,528
Grey Wolf, Inc. * (g) 382,100 3,363
Headwaters, Inc. * (g) 45,900 1,584
HealthExtras, Inc. * 107,200 3,527
Hibbet Sporting Goods, Inc. * (g) 82,050 2,515
Hub Group, Inc., Class A * (g) 86,500 3,663
Huron Consulting Group, Inc. * 11,514 324
Immucor, Inc. * 84,300 2,533
Jarden Corp. * (g) 80,700 1,988
Jos. A. Bank Clothiers, Inc. * 19,000 974
Labor Ready, Inc. * (g) 79,900 1,861
LKQ Corp. * 125,268 2,818
Mattson Technology, Inc. * 113,000 1,469
MWI Veterinary Supply, Inc. * (g) 82,900 2,211
National Medical Health Card Systems, Inc. * 66,200 2,090
Navigant Consulting, Inc. * (g) 90,000 2,045
NCI, Inc. * 146,438 2,000
NICE Systems, Ltd., ADR * 62,186 3,279
NuVasive, Inc. * 8,428 155
O2Micro International, Ltd. ADR * 85,600 931
Openwave Systems, Inc. * (g) 153,500 3,309
OraSure Technologies, Inc. * 318,600 3,476
Parametric Technology Corp. * 459,700 2,878
Psychiatric Solutions, Inc. * 119,000 3,926
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
RC2 Corp. * 67,100 $ 2,340
Respironics, Inc. * 81,500 2,936
Saifun Semiconductors, Ltd. * 65,695 2,234
Scientific Games Corp., Class A * 82,500 2,644
SI International, Inc. * 83,400 2,537
Stage Stores, Inc. (g) 93,500 2,776
Stein Mart, Inc. 39,833 660
Superior Energy Services, Inc. * 118,200 3,209
Sybron Dental Specialites, Inc. * 64,400 2,743
Symmetricom, Inc. * 265,200 2,623
Texas Industries, Inc. 25,100 1,351
Trimble Navigation Ltd. * (g) 68,800 2,754
UbiquiTel, Inc. * 226,300 2,215
United Natural Foods, Inc. * (g) 77,700 2,512
United Surgical Partners International,
Inc. * (g) 86,800 3,364
Varian Semiconductor Equipment
Associates, Inc. * (g) 59,600 2,952
VCA Antech, Inc. * 91,300 2,526
Ventiv Health, Inc. * 76,300 1,945
WCI Communities, Inc. * (g) 65,700 1,809
WebSideStory, Inc. * 101,900 2,053
Wintrust Financial Corp. 30,400 1,632
Witness Systems, Inc. * (g) 129,300 2,578
Zenith National Insurance Corp. 50,300 2,781
----------
TOTAL COMMON STOCKS 183,928
----------
INVESTMENTS IN AFFILIATES (4.3%)
Fifth Third Institutional Money Market Fund 8,279,210 8,279
----------
TOTAL INVESTMENTS IN AFFILIATES 8,279
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (23.2%)
Pool of various securities for Fifth Third
Funds $ 44,144 44,144
----------
TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING 44,144
----------
TOTAL INVESTMENTS (COST $174,057) + - 124.1% 236,351
LIABILITIES IN EXCESS OF OTHER ASSETS - (24.1)% (45,910)
----------
NET ASSETS - 100.0% $ 190,441
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
35
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (100.4%)
Advance Auto Parts, Inc. * 132,250 $ 5,762
Advanced Micro Devices, Inc. * (g) 60,000 2,512
Affiliated Managers Group, Inc. * (g) 48,500 4,501
Akamai Technologies, Inc. * (g) 169,900 3,709
Allegheny Technologies, Inc. (g) 119,000 6,170
Alliance Data Systems Corp. * (g) 168,400 7,115
Altera Corp. * 272,500 5,262
Amdocs Ltd. * 179,500 5,780
American Capital Strategies Ltd. (g) 129,000 4,586
American Medical Systems Holdings, Inc. * 377,600 8,556
Analog Devices, Inc. (g) 100,000 3,977
Autodesk, Inc. (g) 144,100 5,849
Avid Technology, Inc. * (g) 111,800 5,553
Biomet, Inc. (g) 112,900 4,269
Broadcom Corp., Class A * 80,600 5,497
C.H. Robinson Worldwide, Inc. (g) 120,400 4,871
CACI International, Inc., Class A * 80,300 4,585
Caremark Rx, Inc. * 74,100 3,653
Carters, Inc. * 86,000 5,847
CNET Networks, Inc. * (g) 251,600 3,779
Coach, Inc. * 119,300 4,289
Cognizant Technology Solutions Corp. * 120,400 6,306
Community Health System, Inc. * 111,600 4,061
Comverse Technology, Inc. * 300,000 8,217
Corporate Executive Board Co. 88,200 7,421
Covance, Inc. * 155,900 8,857
Coventry Health Care, Inc. * 70,000 4,170
Cytyc Corp. * (g) 290,300 8,738
D. R. Horton, Inc. 120,400 4,494
E*TRADE Financial Corp. * 184,000 4,377
Fastenal Co. (g) 95,700 3,651
Fidelity National Financial, Inc. 149,400 5,897
Fisher Scientific International, Inc. * (g) 115,000 7,691
GEN-Probe, Inc. * 92,500 4,665
Gilead Sciences, Inc. * 75,000 4,565
GlobalSantaFe Corp. (g) 152,700 9,323
IDEX Corp. 122,500 5,635
ITT Industries, Inc. 37,400 3,834
Jabil Circuit, Inc. * 183,100 7,397
Joy Global, Inc. 262,550 14,188
Laureate Education, Inc. * 169,900 8,852
Lennar Corp., Class A (g) 66,600 4,166
Manpower, Inc. 103,500 5,571
Marriott International, Inc., Class A 92,800 6,184
Maxim Integrated Products, Inc. 134,800 5,531
Michael's Stores, Inc. 157,000 5,280
Microchip Technology, Inc. 86,000 3,226
MICROS Systems, Inc. * 134,400 6,203
Nabors Industries Ltd. * (g) 101,100 8,214
National-Oilwell Varco, Inc. * 127,900 9,729
Network Appliance, Inc. * (g) 105,400 3,288
Nextel Partners Inc., Class A * 148,400 4,154
Novellus Systems, Inc. * 172,300 4,885
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Polo Ralph Lauren Corp. 108,600 $ 6,151
Precision Castparts Corp. 97,500 4,870
ProAssurance Corp. * 60,000 3,071
Respironics, Inc. * 177,800 6,406
Scientific Games Corp., Class A * 190,300 6,099
Seagate Technology 205,000 5,346
Starwood Hotels & Resorts 111,200 6,762
Worldwide, Inc. (g)
Station Casinos, Inc. 87,100 5,823
Stericycle, Inc. * 68,800 4,112
T. Rowe Price Group, Inc. 109,700 8,385
Thermo Electron Corp. * (g) 167,700 5,641
Ultra Petroleum Corp. * 160,200 11,021
Urban Outfitters, Inc. * 235,600 6,434
VeriSign, Inc. * 134,300 3,190
WESCO International, Inc. * (g) 160,200 7,678
Williams-Sonoma, Inc. * (g) 117,200 4,662
Xilinx, Inc. (g) 149,400 4,207
XTO Energy, Inc. 177,400 8,707
----------
TOTAL COMMON STOCKS 413,457
----------
INVESTMENTS IN AFFILIATES (0.7%)
Fifth Third Institutional Money Market Fund 2,963,451 2,963
----------
TOTAL INVESTMENTS IN AFFILIATES 2,963
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (23.7%)
Pool of various securities for
Fifth Third Funds $ 97,743 97,743
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 97,743
----------
TOTAL INVESTMENTS (COST $395,467) + - 124.8% 514,163
LIABILITIES IN EXCESS OF OTHER ASSETS - (24.8)% (102,075)
----------
NET ASSETS - 100.0% $ 412,088
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
36
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (99.0%)
Accenture Ltd., Class A 438,000 $ 13,810
ACE Ltd. (g) 310,000 16,973
Alcon, Inc. 66,000 8,443
Amgen, Inc. * 372,000 27,115
Applied Materials, Inc. 995,000 18,955
Baker Hughes, Inc. (g) 82,000 6,350
Bank of America Corp. 459,000 20,301
Best Buy Co., Inc. (g) 483,000 24,469
Broadcom Corp., Class A * (g) 90,000 6,138
Capital One Financial Corp. 252,000 20,992
Caremark Rx, Inc. * 445,000 21,939
Cintas Corp. (g) 192,000 8,179
Cisco Systems, Inc. * 683,000 12,683
Coach, Inc. * 527,000 18,946
Comverse Technology, Inc. * (g) 713,000 19,529
CVS Corp. 951,000 26,400
Electronic Arts, Inc. * 150,000 8,187
EMC Corp. * 1,868,000 25,031
Emerson Electric Corp. 115,000 8,907
Exxon Mobil Corp. 156,000 9,789
First Data Corp. 298,000 13,440
General Electric Corp. 720,000 23,580
Genzyme Corp. * 181,000 12,840
Gilead Sciences, Inc. * 227,000 13,817
Henry Schein, Inc. * (g) 463,000 21,594
Home Depot, Inc. 397,000 16,098
Infosys Technologies Ltd., ADR 131,000 9,991
Intel Corp. (g) 394,000 8,380
ITT Industries, Inc. 82,000 8,405
Jabil Circuit, Inc. * 244,000 9,858
Johnson & Johnson 141,000 8,113
KLA-Tencor Corp. (g) 289,000 15,022
L-3 Communications Holdings, Inc. (g) 350,000 28,357
Lowe's Cos., Inc. (g) 190,000 12,075
Marriott International, Inc., Class A (g) 361,000 24,057
Microsoft Corp. 794,000 22,351
Morgan Stanley 161,000 9,893
Motorola, Inc. 936,000 21,257
Nordstrom, Inc. 443,000 18,482
Northern Trust Corp. (g) 204,000 10,651
PepsiCo, Inc. 122,000 6,976
Pharmaceutical Product Development, Inc. 281,000 19,439
Procter & Gamble Co. 295,000 17,473
QUALCOMM, Inc. 394,000 18,896
Red Hat, Inc. * (g) 309,000 8,946
Robert Half International, Inc. 356,000 13,005
Rockwell Automation, Inc. 316,000 20,878
Station Casinos, Inc. 350,000 23,398
Teva Pharmaceutical Industries Ltd., ADR (g) 496,000 21,144
Texas Instruments, Inc. 626,000 18,298
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
WellPoint, Inc. * 283,000 $ 21,734
Wm. Wrigley Jr. Co. 175,000 11,193
Yahoo, Inc. * (g) 214,000 7,349
----------
Total Common Stocks 840,126
----------
INVESTMENTS IN AFFILIATES (0.0%)
Fifth Third Institutional Money Market Fund 80,184 80
----------
TOTAL INVESTMENTS IN AFFILIATES 80
----------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (11.3%)
Pool of various securities for
Fifth Third Funds $ 95,963 95,963
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 95,963
----------
TOTAL INVESTMENTS (COST $782,147) + - 110.3% 936,169
Liabilities in excess of other assets - (10.3)% (87,454)
----------
NET ASSETS - 100.0% $ 848,715
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
37
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (96.7%)
Accenture Ltd., Class A 48,474 $ 1,528
ACE Ltd. 12,002 657
Agilent Technologies, Inc. * 13,050 443
Albertson's, Inc. 25,410 639
Alcon, Inc. 10,596 1,355
Allergan, Inc. 143 17
Altria Group, Inc. 13,568 982
American Eagle Outfitters, Inc. 21,595 583
American International Group, Inc. 24,498 1,604
AmerisourceBergen Corp. 36,562 1,596
Amgen, Inc. * 14,133 1,030
Anadarko Petroleum Corp. 15,846 1,709
Apple Computer, Inc. * 1,623 123
Applied Biosystems Group 12,061 342
Archer-Daniels-Midland Co. 38,485 1,212
AT&T, Inc. 2,547 66
Autoliv, Inc. 29,099 1,426
AutoNation, Inc. * 17,425 388
Baker Hughes, Inc. (g) 5,431 421
Bank of America Corp. 105,332 4,658
Baxter International, Inc. 12,049 444
Best Buy Co., Inc. 33,332 1,689
Biogen Idec, Inc. * 6,392 286
BMC Software, Inc. * 12,103 267
Boeing Co. 34,086 2,328
Brown-Forman Corp. (g) 17,604 1,248
Burlington Northern Santa Fe Corp. 27,160 2,176
Burlington Resources, Inc. 9,934 907
Cardinal Health, Inc. 27,678 1,994
Career Education Corp. * 14,753 479
Caremark Rx, Inc. * 15,244 752
Caterpillar, Inc. 20,055 1,362
CBS Corp., Class B 34,285 896
Cendant Corp. 5,889 99
Centerpoint Energy, Inc. (g) 61,254 783
Check Point Software Technologies Ltd. * 7,168 155
Chevron Corp. 19,574 1,162
Chubb Corp. 6,490 612
Circuit City Stores, Inc. 64,137 1,617
Cisco Systems, Inc. * 119,952 2,227
CIT Group, Inc. 28,363 1,513
Citigroup, Inc. 110,351 5,140
CMS Energy Corp. * (g) 18,491 268
Coca-Cola Co. 68,415 2,831
Comerica, Inc. 1,434 80
ConocoPhillips 6,411 415
Cooper Cameron Corp. * 2,278 110
Costco Wholesale Corp. 11,567 577
Countrywide Credit Industries, Inc. 44,837 1,499
Crown Castle International Corp. * 16,085 509
CSX Corp. 32,297 1,729
Cummins Engine, Inc. (g) 1,420 138
DaimlerChrysler AG 13,828 793
Darden Restaurants, Inc. 38,919 1,582
CONTINUED
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Dean Foods Co. * 26,587 $ 1,008
Deere & Co. 7,571 543
Dell, Inc. * 62,413 1,829
Devon Energy Corp. 17,635 1,203
Diamond Offshore Drilling, Inc. 2,692 228
DST Systems, Inc. * 2,219 126
Eastman Chemical Co. 3,949 190
Edison International 36,987 1,621
EMC Corp. * 14,966 201
Energy East Corp. 61,075 1,518
Express Scripts, Inc. * 19,018 1,736
Exxon Mobil Corp. 123,010 7,719
Fidelity National Financial, Inc. 8,440 333
Freddie Mac 27,272 1,851
Freeport-McMoRan Copper & Gold,
Inc., Class B (g) 20,311 1,305
General Electric Corp. (a) 125,235 4,102
General Mills, Inc. 35,162 1,709
Genuine Parts Co. 1,382 59
Genworth Financial, Inc., Class A 10,847 355
Goldman Sachs Group, Inc. 15,639 2,209
Hartford Financial Services Group, Inc. 21,510 1,769
Hasbro, Inc. 34,173 724
HCA, Inc. 22,877 1,123
Health Net Inc. * 1,438 71
Hewlett-Packard Co. 93,165 2,904
Home Depot, Inc. 776 31
IBM Corp. 10,013 814
Imperial Oil Ltd. 762 80
Ingersoll-Rand Co., Class A 17,326 680
Intel Corp. 151,655 3,226
Intuit, Inc. * (g) 11,556 605
J.C. Penney Co., Inc. 25,585 1,428
J.P. Morgan Chase & Co. 61,384 2,440
Johnson & Johnson 70,391 4,051
King Pharmaceuticals, Inc. * 8,963 168
Kroger Co. * 44,923 827
Lam Research Corp. * 7,561 351
Lehman Brothers Holdings, Inc. (g) 15,424 2,166
Leucadia National Corp. 30,380 1,594
Liberty Media Corp., Class A * 53,583 448
Lincoln National Corp. 14,911 813
Lockheed Martin Corp. 27,995 1,894
Loews Corp. 16,969 1,675
LSI Logic Corp. * 22,588 207
Marathon Oil Corp. 7,811 600
MBIA, Inc. (g) 2,197 135
McDonald's Corp. 53,717 1,881
McKesson, Inc. 31,169 1,652
MeadWestvaco Corp. 7,333 196
Merck & Co., Inc. 44,264 1,527
Merrill Lynch & Co., Inc. (g) 35,494 2,665
MetLife, Inc. 40,832 2,048
Microsoft Corp. (a) 199,328 5,611
CONTINUED
38
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Moody's Corp. (g) 26,578 $ 1,683
Motorola, Inc. 95,323 2,165
National City Corp. 6,369 218
National Semiconductor Corp. 30,740 867
Newell Rubbermaid, Inc. 54,673 1,292
Nike, Inc., Class B 7,334 594
NiSource, Inc. 44,629 916
Nordstrom, Inc. 27,364 1,142
Northrop Grumman Corp. 29,688 1,845
Nucor Corp. (g) 13,524 1,139
Occidental Petroleum Corp. (g) 12,315 1,203
Old Republic International Corp. 12,430 267
PepsiCo, Inc. 2,949 169
Pfizer, Inc. 176,847 4,540
PG&E Corp. 45,025 1,679
Phelps Dodge Corp. 3,856 619
Procter & Gamble Co. 33,412 1,979
Prudential Financial, Inc. (g) 27,382 2,064
R.H. Donnelley Corp. * 7,482 491
Radian Group, Inc. 3,513 201
Raytheon Co. 10,758 441
Reynolds American, Inc. (g) 11,565 1,169
Robert Half International, Inc. 8,391 307
Rohm & Haas Co. (g) 9,658 492
Royal Caribbean Cruises Ltd. 4,929 202
Safeway, Inc. 66,716 1,564
Schlumberger, Ltd. (g) 4,867 620
Seagate Technology (g) 15,307 399
Shaw Communications, Inc. 12,410 302
Solectron Corp. * 309,432 1,181
St. Paul Cos. 33,342 1,513
Staples, Inc. 15,202 360
Sun Life Financial, Inc. 3,749 159
Sunoco, Inc. 3,531 336
Talisman Energy Inc. 6,379 389
Telus Corp. 36,904 1,451
Texas Instruments, Inc. 69,118 2,020
The PMI Group, Inc. 11,323 489
Tiffany & Co. 17,208 649
Time Warner, Inc. 75,230 1,318
Tyco International Ltd. 23,955 624
U.S. Bancorp. 4,499 135
UnionBanCal Corp. 7,496 503
UnitedHealth Group, Inc. 29,144 1,732
Verizon Communications, Inc. 818 26
Viacom, Inc., Class B * 30,681 1,273
Wachovia Corp. (g) 13,404 735
Wal-Mart Stores, Inc. (a) 7,384 340
Wells Fargo & Co. 26,891 1,676
----------
TOTAL COMMON STOCKS 183,173
----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
INVESTMENTS IN AFFILIATES (2.8%)
Fifth Third Institutional Money Market Fund 5,260,261 $ 5,260
----------
TOTAL INVESTMENTS IN AFFILIATES 5,260
----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (7.6%)
Pool of various securities for
Fifth Third Funds $ 14,384 14,384
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 14,384
----------
TOTAL INVESTMENTS (COST $179,946) + - 107.1% 202,817
LIABILITIES IN EXCESS OF OTHER ASSETS - (7.1)% (13,431)
----------
NET ASSETS - 100.0% $ 189,386
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
39
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (98.4%)
3M Co. 26,672 $ 1,940
Abbott Laboratories 54,444 2,349
ACE Ltd. 11,313 619
ADC Telecommunications, Inc. * 4,089 104
Adobe Systems, Inc. 21,101 838
Advanced Micro Devices, Inc. * 14,182 594
AES Corp. * 22,925 391
Aetna, Inc. 10,038 972
Affiliated Computer Services Inc.,
Class A * (g) 4,362 273
AFLAC, Inc. 17,562 825
Agilent Technologies, Inc. * 14,429 490
Air Products and Chemicals, Inc. 7,788 480
Alberto-Culver Co. 2,650 117
Albertson's, Inc. 12,943 326
Alcoa, Inc. 30,542 962
Allegheny Energy, Inc. * 5,716 199
Allegheny Technologies, Inc. 2,985 155
Allergan, Inc. (g) 4,619 538
Allied Waste Industries, Inc. * (g) 7,658 70
Allstate Corp. 22,766 1,185
Alltel Corp. 13,439 807
Altera Corp. * 12,722 246
Altria Group, Inc. 73,086 5,287
Amazon.com, Inc. * (g) 10,765 482
AMBAC Financial Group, Inc. 3,692 284
Amerada Hess Corp. (g) 2,808 435
Ameren Corp. 7,170 364
American Electric Power Co. 13,817 516
American Express Co. 43,580 2,286
American International Group, Inc. 91,100 5,963
American Power Conversion Corp. 6,032 143
American Standard Companies, Inc. (g) 6,416 231
Ameriprise Financial, Inc. 8,634 351
AmerisourceBergen Corp. 7,318 319
Amgen, Inc. * 43,322 3,158
AmSouth Bancorp. 12,234 338
Anadarko Petroleum Corp. 8,325 898
Analog Devices, Inc. 12,875 512
Andrew Corp. * (g) 5,702 74
Anheuser-Busch Co., Inc. 27,247 1,129
Aon Corp. 11,232 384
Apache Corp. (g) 11,557 873
Apartment Investment & Management Co. (g) 3,359 143
Apollo Group, Inc., Class A * 5,108 284
Apple Computer, Inc. * 29,579 2,234
Applied Biosystems Group 6,595 187
Applied Materials, Inc. 56,945 1,085
Applied Micro Circuits Corp. * 10,486 34
Archer-Daniels-Midland Co. 22,925 721
Ashland, Inc. 2,519 166
AT&T Inc. 137,105 3,558
Autodesk, Inc. (g) 8,101 329
CONTINUED
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Automatic Data Processing, Inc. 20,237 $ 889
AutoNation, Inc. * 6,354 142
AutoZone, Inc. * 1,938 189
Avaya, Inc. * 14,698 155
Avery Dennison Corp. 3,877 232
Avon Products, Inc. 16,088 456
Baker Hughes, Inc. (g) 11,998 929
Ball Corp. 3,652 148
Bank of America Corp. 163,020 7,210
Bank of New York Co., Inc. 27,033 860
Bausch & Lomb, Inc. 1,887 127
Baxter International, Inc. 21,888 807
BB&T Corp. 19,033 743
Bear Stearns Cos., Inc. 3,977 503
Becton, Dickinson & Co. 8,846 573
Bed Bath & Beyond, Inc. * 10,419 390
BellSouth Corp. 64,180 1,846
Bemis Co. 3,696 113
Best Buy Co., Inc. 14,345 727
Big Lots, Inc. * (g) 3,999 53
Biogen Idec, Inc. * 11,912 533
Biomet, Inc. (g) 8,742 331
BJ Services Co. 11,313 458
Black & Decker Corp. 2,752 237
BMC Software, Inc. * 7,592 168
Boeing Co. 28,333 1,935
Boston Scientific Corp. * 20,709 453
Bristol-Myers Squibb Co. (g) 68,669 1,565
Broadcom Corp., Class A * 10,150 692
Brown-Forman Corp. 2,916 207
Brunswick Corp. 3,386 127
Burlington Northern Santa Fe Corp. 13,106 1,050
Burlington Resources, Inc. 13,268 1,211
C.R. Bard, Inc. 3,681 233
Campbell Soup Co. 6,532 196
Capital One Financial Corp. 10,512 876
Cardinal Health, Inc. 15,030 1,083
Caremark Rx, Inc. * 15,786 778
Carnival Corp. 15,206 787
Caterpillar, Inc. 23,874 1,621
CBS Corp., Class B 27,121 709
Cendant Corp. 35,953 603
Centerpoint Energy, Inc. (g) 10,884 139
Centex Corp. 4,484 320
CenturyTel, Inc. 4,598 153
Charles Schwab Corp. 36,206 535
Chevron Corp. 78,794 4,678
Chiron Corp. * 3,839 175
Chubb Corp. 7,016 662
Ciena Corp. * 20,285 81
CIGNA Corp. 4,415 537
Cincinnati Financial Corp. 6,132 279
Cinergy Corp. 7,000 304
Cintas Corp. (g) 4,834 206
CONTINUED
40
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Circuit City Stores, Inc. 5,497 $ 139
Cisco Systems, Inc. * 215,589 4,004
CIT Group, Inc. 7,012 374
Citigroup, Inc. 177,558 8,270
Citizens Communications Co. (g) 11,719 144
Citrix Systems, Inc. * 6,189 191
Clear Channel Communications, Inc. 18,971 555
Clorox Co. 5,289 317
CMS Energy Corp. * (g) 7,725 112
Coach, Inc. * 13,339 480
Coca-Cola Co. 72,648 3,006
Coca-Cola Enterprises, Inc. 10,636 210
Colgate-Palmolive Co. 18,182 998
Comcast Corp., Class A * (g) 76,214 2,119
Comerica, Inc. 5,801 322
Compass Bancshares, Inc. 4,371 213
Computer Associates International, Inc. 16,105 440
Computer Sciences Corp. * 6,493 329
Compuware Corp. * 13,598 112
Comverse Technology, Inc. * 7,090 194
ConAgra, Inc. (g) 18,213 378
ConocoPhillips 48,700 3,150
Consolidated Edison, Inc. (g) 8,598 404
Constellation Brands, Inc. * 6,905 184
Constellation Energy Group, Inc. 6,264 365
Convergys Corp. * 4,913 85
Cooper Industries Ltd. 3,216 263
Cooper Tire & Rubber Co. 2,152 32
Corning, Inc. * 53,487 1,302
Costco Wholesale Corp. 16,570 827
Countrywide Credit Industries, Inc. 20,960 701
Coventry Health Care, Inc. * 5,702 340
CSX Corp. 7,625 408
Cummins Engine, Inc. (g) 1,643 160
CVS Corp. 28,576 793
D. R. Horton, Inc. 9,554 357
Dana Corp. 5,278 26
Danaher Corp. 8,326 472
Darden Restaurants, Inc. 4,596 187
Deere & Co. 8,465 607
Dell, Inc. * 82,603 2,421
Devon Energy Corp. 15,594 1,064
Dillards Department Stores, Inc. 2,162 56
Dollar General Corp. 11,113 188
Dominion Resources, Inc. 12,189 921
Dover Corp. 7,113 327
Dow Chemical Co. 33,873 1,434
Dow Jones & Co. 2,071 79
DTE Energy Co. (g) 6,241 263
Duke Energy Corp. (g) 32,555 923
Dynegy, Inc. * 10,574 58
E*TRADE Financial Corp. * 14,357 342
E. I. du Pont de Nemours & Co. 32,268 1,263
Eastman Chemical Co. 2,860 138
CONTINUED
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Eastman Kodak Co. (g) 10,080 $ 253
Eaton Corp. 5,194 344
eBay, Inc. * 40,113 1,730
Ecolab, Inc. 6,470 232
Edison International 11,435 501
El Paso Energy Corp. (g) 23,141 311
Electronic Arts, Inc. * 10,550 576
Electronic Data Systems Corp. 18,305 461
Eli Lilly & Co. 39,893 2,259
EMC Corp. * 83,908 1,124
Emerson Electric Corp. 14,419 1,117
Engelhard Corp. 4,208 170
Entergy Corp. 7,282 506
EOG Resources, Inc. 8,479 717
Equifax, Inc. 4,558 175
Equity Office Properties Trust 14,256 453
Estee Lauder Companies Inc., Class A 4,243 155
Exelon Corp. 23,418 1,344
Express Scripts, Inc. * 5,111 467
Exxon Mobil Corp. (g) 218,391 13,703
Family Dollar Stores, Inc. 5,449 131
Fannie Mae 33,971 1,968
Federated Department Stores, Inc. 9,554 637
Federated Investors, Inc. 2,972 115
FedEx Corp. 10,636 1,076
Fifth Third Bancorp. (b) 19,474 732
First Data Corp. 26,817 1,209
First Horizon National Corp. 4,422 167
FirstEnergy Corp. 11,576 580
Fiserv, Inc. * 6,475 285
Fisher Scientific International, Inc. * (g) 4,304 288
Fluor Corp. 3,047 268
Ford Motor Co. 65,198 558
Forest Laboratories, Inc. * 11,856 549
Fortune Brands, Inc. 5,128 384
FPL Group, Inc. (g) 13,858 579
Franklin Resources, Inc. 5,210 513
Freddie Mac 24,252 1,646
Freeport-McMoRan Copper & Gold, 6,460 415
Inc., Class B
Freescale Semiconductor, Inc. * 14,404 364
Gannett, Inc. 8,420 520
Gap, Inc. 20,144 364
Gateway, Inc. * 9,299 25
General Dynamics Corp. 7,065 822
General Electric Corp. (a) 370,847 12,145
General Mills, Inc. 12,469 605
General Motors Corp. (g) 19,848 478
Genuine Parts Co. 6,090 259
Genworth Financial Inc., Class A 13,219 433
Genzyme Corp. * 9,063 643
Gilead Sciences, Inc. * 16,072 978
Golden West Financial Corp. (g) 8,944 632
Goldman Sachs Group, Inc. 15,822 2,235
CONTINUED
41
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Goodrich Corp. 4,314 $ 170
Goodyear Tire & Rubber Co. * (g) 6,191 97
Guidant Corp. 11,645 857
H & R Block, Inc. 11,499 281
H.J. Heinz Co. 11,746 399
Halliburton Co. (g) 17,999 1,432
Harley-Davidson, Inc. 9,638 516
Harman International Industries, Inc. 2,313 255
Harrah's Entertainment, Inc. (g) 6,450 475
Hartford Financial Services Group, Inc. 10,543 867
Hasbro, Inc. 6,260 133
HCA, Inc. (g) 14,878 730
Health Management Associates, Inc., Class A 8,676 182
Hercules, Inc. * (g) 3,958 46
Hewlett-Packard Co. 100,554 3,136
Hilton Hotels Corp. 11,514 287
Home Depot, Inc. 74,557 3,023
Honeywell International, Inc. 29,579 1,136
Hospira, Inc. * 5,646 253
Humana, Inc. * 5,714 319
Huntington Bancshares 8,009 186
IBM Corp. 55,437 4,508
Illinois Tool Works, Inc. 7,187 606
IMS Health, Inc. 8,132 200
Ingersoll-Rand Co., Class A 11,611 456
Intel Corp. 211,603 4,502
International Flavors & Fragrances, Inc. 2,836 93
International Game Technology 11,826 423
International Paper Co. 17,215 562
Interpublic Group Cos., Inc. * (g) 15,110 153
Intuit, Inc. * (g) 6,210 325
ITT Industries, Inc. 3,241 332
J.C. Penney Co., Inc. 8,151 455
J.P. Morgan Chase & Co. 122,809 4,881
Jabil Circuit, Inc. * 6,106 247
Janus Capital Group, Inc. 7,570 158
JDS Uniphase Corp. * (g) 57,996 182
Jefferson-Pilot Corp. 4,704 274
Johnson & Johnson 104,413 6,007
Johnson Controls, Inc. 6,773 469
Jones Apparel Group, Inc. 4,100 128
KB Home (g) 2,747 209
Kellogg Co. 9,014 387
Kerr-McGee Corp. 4,071 449
KeyCorp 14,312 507
KeySpan Corp. 6,120 220
Kimberly-Clark Corp. 16,397 937
Kinder Morgan, Inc. 3,693 356
King Pharmaceuticals, Inc. * 8,486 159
KLA-Tencor Corp. 6,929 360
Knight-Ridder, Inc. 2,436 152
Kohl's Corp. * 12,100 537
CONTINUED
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Kroger Co. * 25,441 $ 468
L-3 Communications Holdings, Inc. 4,216 342
Laboratory Corp. of America Holdings * (g) 4,665 274
Leggett & Platt, Inc. 6,457 159
Lehman Brothers Holdings, Inc. (g) 9,403 1,321
Lennar Corp., Class A 4,821 302
Lexmark International, Inc. * 4,073 198
Limited Brands, Inc. 12,222 289
Lincoln National Corp. 6,080 332
Linear Technology Corp. 10,697 398
Liz Claiborne, Inc. 3,743 130
Lockheed Martin Corp. 12,550 849
Loews Corp. 4,759 470
Louisiana-Pacific Corp. 3,712 109
Lowe's Cos., Inc. (g) 27,443 1,744
LSI Logic Corp. * 13,757 126
Lucent Technologies, Inc. * (g) 156,003 412
M&T Bank Corp. 2,800 303
Manor Care, Inc. 2,777 109
Marathon Oil Corp. 12,863 989
Marriott International, Inc., Class A 5,777 385
Marsh & McLennan Cos., Inc. 19,118 581
Marshall & Ilsley Corp. (g) 7,341 308
Masco Corp. 14,874 441
Mattel, Inc. 14,173 234
Maxim Integrated Products, Inc. 11,506 472
Maytag Corp. 2,813 48
MBIA, Inc. (g) 4,705 290
McCormick & Co. 4,698 142
McDonald's Corp. 44,173 1,546
McGraw-Hill Cos., Inc. 13,158 672
McKesson, Inc. 10,799 572
MeadWestvaco Corp. 6,369 170
Medco Health Solutions, Inc. * 10,794 584
MedImmune, Inc. * 8,636 295
Medtronic, Inc. 42,454 2,397
Mellon Financial Corp. 14,675 518
Merck & Co., Inc. 76,746 2,648
Meredith Corp. 1,471 81
Merrill Lynch & Co., Inc. (g) 32,253 2,421
MetLife, Inc. 26,579 1,333
MGIC Investment Corp. 3,184 210
Micron Technology, Inc. * (g) 21,690 318
Microsoft Corp. 321,298 9,044
Millipore Corp. * 1,828 126
Molex, Inc. (g) 5,038 152
Molson Coors Brewing Co., Class B 1,982 124
Monsanto Co. 9,423 797
Monster Worldwide, Inc. * (g) 4,321 184
Moody's Corp. (g) 8,709 551
Morgan Stanley 37,832 2,325
Motorola, Inc. 87,421 1,985
Murphy Oil Corp. 5,795 330
Mylan Laboratories, Inc. 7,672 151
CONTINUED
42
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Nabors Industries Ltd. * 5,546 $ 451
National City Corp. (g) 19,344 661
National Semiconductor Corp. 12,062 340
National-Oilwell Varco, Inc. * 6,118 465
Navistar International Corp. * 2,165 59
NCR Corp. * 6,444 239
Network Appliance, Inc. * (g) 13,060 407
New York Times Co. (g) 5,092 144
Newell Rubbermaid, Inc. 9,669 229
Newmont Mining Corp. 15,681 969
News Corp., Class A 85,403 1,346
NICOR, Inc. 1,551 63
Nike, Inc., Class B (g) 6,672 540
NiSource, Inc. 9,568 196
Noble Corp. 4,805 387
Nordstrom, Inc. 7,672 320
Norfolk Southern Corp. 14,264 711
North Fork Bancorp., Inc. (g) 16,695 429
Northern Trust Corp. 6,511 340
Northrop Grumman Corp. 12,470 775
Novell, Inc. * 13,407 131
Novellus Systems, Inc. * 4,681 133
Nucor Corp. (g) 5,462 460
NVIDIA Corp. * (g) 6,008 270
Occidental Petroleum Corp. (g) 15,096 1,475
Office Depot, Inc. * 10,840 359
Officemax, Inc. 2,485 71
Omnicom Group, Inc. 6,328 517
Oracle Corp. * 131,996 1,659
PACCAR, Inc. 5,942 414
Pactiv Corp. * 5,029 112
Pall Corp. 4,372 126
Parametric Technology Corp. * 9,558 60
Parker Hannifin Corp. 4,203 318
Patterson Cos, Inc. * (g) 4,853 168
Paychex, Inc. 11,705 425
People's Energy Corp. 1,339 50
Pepsi Bottling Group, Inc. (g) 4,812 140
PepsiCo, Inc. 58,234 3,330
PerkinElmer, Inc. 4,591 104
Pfizer, Inc. 258,718 6,643
PG&E Corp. 12,042 449
Phelps Dodge Corp. 3,564 572
Pinnacle West Capital Corp. 3,475 148
Pitney Bowes, Inc. 8,006 342
Plum Creek Timber Co., Inc. 6,460 239
PMC-Sierra, Inc. * 6,431 61
PNC Financial Services Group 10,257 665
PPG Industries, Inc. 5,862 349
PPL Corp. 13,342 402
Praxair, Inc. 11,312 596
Principal Financial Group 9,833 464
Procter & Gamble Co. 117,639 6,967
Progress Energy, Inc. 8,833 385
CONTINUED
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Progressive Corp. (g) 6,923 $ 727
Prudential Financial, Inc. (g) 17,724 1,335
Public Service Enterprise Group, Inc. 8,799 613
Public Storage, Inc. (g) 2,902 211
Pulte Homes, Inc. 7,530 300
QLogic Corp. * (g) 2,824 112
QUALCOMM, Inc. 57,707 2,768
Quest Diagnostics, Inc. 5,816 287
Qwest Communications International,
Inc. * (g) 54,184 326
R.R. Donnelley & Sons Co. 7,627 249
RadioShack Corp. (g) 4,725 105
Raytheon Co. 15,679 642
Reebok International Ltd. 1,848 109
Regions Financial Corp. 16,072 533
Reynolds American, Inc. 3,001 303
Robert Half International, Inc. 5,977 218
Rockwell Automation, Inc. 6,287 415
Rockwell Collins, Inc. 6,063 284
Rohm & Haas Co. 5,055 257
Rowan Cos., Inc. 3,841 172
Ryder Systems, Inc. 2,252 101
Sabre Group Holdings Corp., Class A 4,606 113
SAFECO Corp. 4,336 227
Safeway, Inc. 15,769 370
Sanmina-SCI Corp. * 18,448 78
Sara Lee Corp. 26,658 487
Schering-Plough Corp. 51,871 993
Schlumberger, Ltd. (g) 20,676 2,636
Scientific-Atlanta, Inc. 5,390 230
Sealed Air Corp. * 2,857 157
Sears Holdings Corp. * 3,503 425
Sempra Energy 9,023 434
Sherwin-Williams Co. (g) 3,940 208
Siebel Systems, Inc. 18,570 197
Sigma-Aldrich Corp. 2,360 153
SLM Corp. (g) 14,647 820
Snap-On, Inc. 2,033 82
Solectron Corp. * 32,065 122
Southern Co. (g) 26,025 906
Southwest Airlines Co. 24,484 403
Sovereign Bancorp, Inc. 12,535 273
Sprint Nextel Corp. 103,695 2,374
St. Jude Medical, Inc. * 12,866 632
St. Paul Cos. 24,303 1,103
Stanley Works 2,553 125
Staples, Inc. 25,670 609
Starbucks Corp. * 26,971 855
Starwood Hotels & Resorts Worldwide, Inc. 7,695 468
State Street Corp. (g) 11,509 696
Stryker Corp. 10,234 511
Sun Microsystems, Inc. * 119,832 539
Sunoco, Inc. 4,778 455
CONTINUED
43
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
SunTrust Banks, Inc. 12,684 $ 906
SUPERVALU, Inc. 4,780 153
Symantec Corp. * 37,957 698
Symbol Technologies, Inc. 8,808 109
Synovus Financial Corp. 10,961 303
Sysco Corp. (g) 21,771 667
T. Rowe Price Group, Inc. 4,587 351
Target Corp. 30,857 1,689
Teco Energy, Inc. 7,304 125
Tektronix, Inc. 2,927 86
Tellabs, Inc. * 15,740 201
Temple-Inland, Inc. 3,939 185
Tenet Healthcare Corp. * 16,475 120
Teradyne, Inc. * 6,911 120
Texas Instruments, Inc. 56,790 1,660
Textron, Inc. 4,646 392
The E.W. Scripps Co., Class A 2,986 144
The Hershey Company (g) 6,356 325
The Walt Disney Co. 67,514 1,709
Thermo Electron Corp. * 5,692 191
Tiffany & Co. 4,992 188
Time Warner, Inc. (g) 163,646 2,868
TJX Companies, Inc. 16,169 413
Torchmark Corp. 3,642 204
Transocean, Inc. * 11,585 940
Tribune Co. 9,189 267
TXU Corp. 16,946 858
Tyco International Ltd. 70,653 1,841
Tyson Foods, Inc., Class A 8,834 127
U.S. Bancorp. 63,749 1,907
U.S.T., Inc. (g) 5,741 224
Union Pacific Corp. 9,299 823
Unisys Corp. * 11,978 80
United Parcel Service, Inc. 38,732 2,901
United States Steel Corp. (g) 3,980 238
United Technologies Corp. 35,752 2,087
UnitedHealth Group, Inc. 47,865 2,843
Univision Communications, Inc. * 7,847 250
UNUMProvident Corp. 10,460 213
V.F. Corp. 3,122 173
Valero Energy 21,643 1,351
VeriSign, Inc. * 8,988 213
Verizon Communications, Inc. 102,570 3,247
Viacom Inc., Class B * 27,121 1,125
Vulcan Materials Co. 3,574 257
W.W. Grainger, Inc. 2,668 189
Wachovia Corp. (g) 54,523 2,989
Wal-Mart Stores, Inc. 87,677 4,044
Walgreen Co. 35,522 1,537
Washington Mutual, Inc. 34,631 1,465
Waste Management, Inc. 19,368 611
Waters Corp. * 3,884 163
Watson Pharmaceuticals, Inc. * 3,559 118
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Weatherford International, Ltd. * (g) 12,201 $ 546
WellPoint, Inc. * 23,163 1,779
Wells Fargo & Co. 58,692 3,660
Wendy's International, Inc. 4,080 241
Weyerhaeuser Co. 8,537 595
Whirlpool Corp. 2,368 191
Whole Foods Market, Inc. 4,831 357
Williams Cos., Inc. 20,111 480
Wm. Wrigley Jr. Co. 6,297 403
Wyeth 47,110 2,179
Xcel Energy, Inc. (g) 14,140 275
Xerox Corp. * (g) 33,708 483
Xilinx, Inc. 12,232 344
XL Capital Ltd., Class A (g) 6,120 414
XTO Energy, Inc. 12,747 626
Yahoo, Inc. * 44,317 1,522
YUM! Brands, Inc. 9,935 491
Zimmer Holdings, Inc. * 8,696 600
Zions Bancorporation (g) 3,665 290
----------
TOTAL COMMON STOCKS 404,070
----------
REAL ESTATE INVESTMENT TRUSTS (0.5%)
Archstone-Smith Trust 7,440 349
Equity Residential Properties Trust 10,114 429
ProLogis 8,546 438
Simon Property Group, Inc. (g) 6,544 541
Vornado Realty Trust 4,144 366
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 2,123
----------
INVESTMENTS IN AFFILIATES (1.3%)
Fifth Third Institutional Money Market Fund 5,495,906 5,496
----------
TOTAL INVESTMENTS IN AFFILIATES 5,496
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (13.0%)
Pool of various securities for Fifth Third
Funds $ 53,487 53,487
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 53,487
----------
TOTAL INVESTMENTS (COST $240,006) + - 113.2% 465,176
LIABILITIES IN EXCESS OF OTHER ASSETS - (13.2)% (54,119)
----------
NET ASSETS - 100.0% $ 411,057
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
44
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMERCIAL PAPER (1.6%)
BMW US Capital LLC, 4.36%, 2/16/06 ** (f) $ 1,740 $ 1,737
----------
TOTAL COMMERCIAL PAPER 1,737
----------
COMMON STOCKS (54.4%)
Allstate Corp. 23,000 1,197
Analog Devices, Inc. 30,000 1,193
Associated Banc-Corp. 30,000 1,015
Becton, Dickinson & Co. 11,000 713
Best Buy Co., Inc. 18,000 912
Burlington Northern Santa Fe Corp. 15,000 1,201
C.H. Robinson Worldwide, Inc. (g) 25,000 1,012
Caremark Rx, Inc. * 18,800 927
Chemed Corp. 12,000 638
ConocoPhillips 12,800 828
Covance, Inc. * 15,000 852
Dade Behring Holdings, Inc. 25,000 978
Dean Foods Co. * 25,000 949
Ecolab, Inc. (g) 38,500 1,379
Emerson Electric Corp. 10,000 775
Exelon Corp. 15,000 861
Gardner Denver, Inc. * 23,000 1,217
Gentex Corp. (g) 38,000 635
Goldman Sachs Group, Inc. 7,000 989
Grant Prideco, Inc. * 28,000 1,403
Helmerich & Payne, Inc. 10,000 784
Hormel Foods Corp. 25,000 838
IDEX Corp. 15,000 690
Jacobs Engineering Group, Inc. * 10,000 834
Johnson Controls, Inc. 15,000 1,039
Joy Global, Inc. 14,000 757
McDonald's Corp. 60,000 2,101
MDU Resources Group, Inc. 30,000 1,087
Medtronic, Inc. 25,000 1,411
Meredith Corp. 14,000 767
Merrill Lynch & Co., Inc. 15,000 1,126
Microsoft Corp. 50,000 1,407
Motorola, Inc. 45,000 1,022
Noble Corp. (g) 11,500 925
Nuveen Investments, Inc. 20,000 907
Oshkosh Truck Corp. 19,000 937
Peabody Energy Corp. 13,000 1,294
PepsiCo, Inc. 17,600 1,006
Procter & Gamble Co. 23,500 1,392
Prudential Financial, Inc. (g) 15,000 1,130
Regal-Beloit Corp. 23,000 848
Reynolds American, Inc. 7,000 708
Rockwell Automation, Inc. 17,000 1,123
Satyam Computer Services, Ltd., ADR 23,000 902
Schlumberger, Ltd. (g) 11,318 1,441
Sherwin-Williams Co. 15,000 794
Snap-On, Inc. 22,000 883
St. Jude Medical, Inc. * 25,000 1,228
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
State Street Corp. (g) 15,000 $ 907
Target Corp. 20,000 1,094
Tellabs, Inc. * 65,000 831
Teva Pharmaceutical Industries, Ltd., ADR (g) 29,094 1,240
Ultra Petroleum Corp. * 15,000 1,031
UnitedHealth Group, Inc. 20,000 1,189
Varian Semiconductor Equipment 22,000 1,090
Associates, Inc. * (g)
Weatherford International, Ltd. * (g) 26,000 1,164
Wisconsin Energy Corp. 20,000 830
Zions Bancorporation 9,500 751
----------
TOTAL COMMON STOCKS 59,182
----------
CORPORATE BONDS (27.4%)
American Home Mortgage Investment
Trust, Series 2005-2, Class 5A4D,
5.33%, 9/25/35 (d) $ 1,500 1,446
AOL Time Warner, Inc., 7.70%, 5/1/32 125 140
Bank One Capital III, 8.75%, 9/1/30 675 887
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-10, Class 12A3,
4.68%, 1/25/35 (d) 710 699
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-12, Class 13A1,
5.48%, 2/25/36 (d) 983 978
Bear Stearns Alternative-A Trust,
Series 2005-9, 5.85%, 11/25/35 (f) 532 536
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32 432 444
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14,
Class A4, 5.20%, 1/12/41 (d) 700 696
Chase Manhattan Auto Owner Trust,
1.52%, 5/15/07 29 29
Chase Mortgage Finance Corp.,
5.00%, 11/25/33 1,607 1,549
Chase Mortgage Finance Corp.,
Series 2005-A1, Class 2A2, 5.26%,
12/25/35 (d) 2,176 2,164
Countrywide Alternative Loan Trust,
6.50%, 9/25/34 316 321
Countrywide Alternative Loan Trust,
Series 2005-74T1, Class A1,
6.00%, 1/25/36 442 442
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2,
Class A2, 6.52%, 1/17/35 29 29
Credit-Based Asset Servicing and
Securitization, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36 400 400
CONTINUED
45
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
DaimlerChrysler, 8.50%, 1/18/31 $ 65 $ 79
Duke Energy Corp., 6.45%, 10/15/32 225 238
First Union-Lehman Brothers, 7.00%, 4/18/29 (e) 630 683
Gazprom International, 7.20%, 2/1/20 (e) 110 117
General Electric Capital Corp., 6.75%, 3/15/32 175 203
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
4.76%, 12/25/20 (d) 629 629
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
4.34%, 11/1/34 385 377
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
4.57%, 3/25/35 (d) 1,000 1,002
Green Tree Financial Corp., 7.60%,
6/15/25 270 279
Green Tree Financial Corp., Series 1998-6,
Class A6, 6.27%, 6/1/30 121 121
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4,
4.95%, 1/11/35 1,000 985
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 700 691
GS Mortgage Securities Corp. II,
Series 2004-C1, Class A1,
3.66%, 10/10/28 687 664
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3,
4.60%, 8/10/38 1,000 984
IBM Corp., 5.88%, 11/29/32 250 258
IndyMac Index Mortgage Loan Trust,
Series 2005-AR9, 5.47%, 7/25/35 412 414
JP Morgan Mortgage Trust,
Series 2005-A1, Class 2A1, 4.88%, 2/25/35 443 435
JP Morgan Mortgage Trust, Series 2005-A2,
4.93%, 4/25/35 2,000 1,958
Lockheed Martin Corp., 7.75%, 5/1/26 180 222
Morgan Stanley Capital I, 5.11%, 6/15/40 800 790
Morgan Stanley Dean Witter Capital I,
4.74%, 11/13/36 700 681
Morgan Stanley Mortgage Loan Trust,
5.00%, 8/25/19 917 901
Motorola, Inc., 6.50%, 11/15/28 205 221
Navistar Financial Corp. Owner Trust,
4.67%, 4/15/08 (d) (f) 1,381 1,382
Pemex Master Trust, 6.13%, 8/15/08 175 178
Residential Accredit Loans, Inc., 4.80%,
3/25/34 (d) (f) 884 885
Residential Asset Securities Corp.,
4.62%, 3/25/34 (d) (f) 481 481
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Trans-Canada Pipeline, 5.60%, 3/31/34 $ 195 $ 195
Truck Retail Installment Paper Corp.,
4.74%, 12/15/16 (d) (e) (f) 2,000 2,006
UBS Preferred Funding Trust I, 8.62%,
10/1/10 (d) 250 284
Washington Mutual, Series 2004-AR3,
Class A-2, 4.24%, 6/25/34 405 398
YUM! Brands Inc., 7.70%, 7/1/12 250 277
----------
TOTAL CORPORATE BONDS 29,778
----------
FOREIGN BONDS (0.8%)
France Telecom, 8.75%, 3/1/31 200 261
United Mexican States, 4.63%, 10/8/08 580 577
----------
TOTAL FOREIGN BONDS 838
----------
U.S. GOVERNMENT AGENCIES (14.5%)
FANNIE MAE (9.7%)
6.50%, 6/1/16 1,096 1,126
5.50%, 1/1/18 272 274
4.50%, 5/1/18 TBA 2,750 2,670
5.50%, 11/1/18 509 513
5.50%, 2/1/25 263 263
5.00%, 5/1/25 469 458
7.50%, 6/1/27 39 41
7.50%, 12/1/27 7 7
7.50%, 12/1/27 98 103
7.00%, 9/1/31 191 198
7.00%, 6/1/32 15 15
5.00%, 6/1/33 TBA 1,000 966
5.50%, 6/1/33 TBA 2,500 2,474
7.00%, 9/1/34 21 21
6.00%, 7/1/35 724 731
6.00%, 9/1/35 712 720
----------
10,580
----------
FREDDIE MAC (4.2%)
4.50%, 8/15/16 1,585 1,537
5.00%, 4/1/18 549 544
5.00%, 8/1/18 629 622
7.50%, 7/1/27 13 13
7.50%, 8/1/27 47 49
7.50%, 11/1/27 31 33
7.50%, 12/1/27 66 69
6.50%, 5/1/31 199 204
6.50%, 11/1/31 609 625
7.00%, 1/1/32 8 9
6.25%, 7/15/32 200 234
7.00%, 8/1/32 43 44
4.50%, 6/1/34 180 169
CONTINUED
46
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC, CONTINUED
4.50%, 9/1/34 $ 224 $ 211
6.00%, 10/1/34 150 151
----------
4,514
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (0.6%)
4.50%, 11/16/29 465 450
6.50%, 4/15/32 124 130
7.00%, 7/20/32 98 102
----------
682
----------
TOTAL U.S. GOVERNMENT AGENCIES 15,776
----------
INVESTMENTS IN AFFILIATES (6.0%)
Fifth Third Institutional Money Market Fund 6,554,275 6,554
----------
TOTAL INVESTMENTS IN AFFILIATES 6,554
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (0.0%)
Pool of various securities for Fifth Third
Funds $ 8,564 8,564
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 8,564
----------
TOTAL INVESTMENTS (COST $117,630) + - 112.6% 122,429
LIABILITIES IN EXCESS OF OTHER ASSETS - (12.6)% (13,687)
----------
NET ASSETS - 100.0% $ 108,742
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (95.1%)
A. T. Cross Co., Class A * 159,000 $ 684
ActivCard Corp. * 308,000 1,093
Analysts International Corp. * 250,000 713
Anaren, Inc. * 46,000 804
Angelica Corp. 28,000 483
APAC Customer Services, Inc. * 491,000 918
Apogee Enterprises, Inc. 174,000 3,212
Applied Films Corp. * 45,000 1,011
At Road, Inc. * 257,000 1,339
B of I Holding, Inc. * 122,000 946
Benihana, Inc., Class A * (g) 78,000 1,801
Berkshire Hills Bancorp, Inc. 54,000 1,788
BioScrip, Inc. * 351,721 2,708
Bombay Co., Inc. * 600,000 1,956
Boykin Lodging Co. * 89,000 1,157
Bradley Pharmaceuticals, Inc. * (g) 90,000 1,056
Brush Engineered Materials, Inc. * 103,000 2,218
BUCA, Inc. * 185,000 1,108
CalAmp Corp. * 70,000 748
Calgon Carbon Corp. (g) 272,000 1,975
CBIZ, Inc. * (g) 207,000 1,240
Celadon Group, Inc. * 44,000 1,364
Center Bancorp, Inc. 90,000 1,013
Cepheid, Inc. * 70,000 690
Compudyne Corp. * (g) 121,000 807
Crawford & Co., Class A 12,200 79
Crawford & Co., Class B 167,800 1,087
Cutter & Buck, Inc. 90,000 1,050
Deb Shops, Inc. 40,000 1,222
DHB Industries, Inc. * (g) 310,000 1,519
Digimarc Corp. * 181,000 1,405
Dot Hill Systems Corp. * 211,000 1,604
EFJ, Inc. * 141,000 1,583
Electro Rent Corp. * 42,000 713
Emerson Radio Corp. * (g) 368,000 1,133
Flow International Corp. * (g) 51,000 535
Frozen Food Express Industries, Inc. * 40,000 523
Government Properties Trust, Inc. (g) 170,000 1,440
GSI Lumonics, Inc. * 88,000 1,171
Hancock Fabrics, Inc. (g) 460,000 2,098
Hartmarx Corp. * 247,000 2,104
Heidrick & Struggles International, Inc. * 15,000 503
InFocus Corp. * (g) 235,000 917
Input/Output, Inc. * (g) 283,000 2,227
Jameson Inns, Inc. * 145,700 361
K2, Inc. * (g) 90,000 1,071
KVH Industries, Inc. * (g) 65,000 720
Lazare Kaplan International, Inc. * 144,000 1,279
LESCO, Inc. * 130,000 1,856
Lightbridge, Inc. * 85,000 829
Lydall, Inc. * 105,000 945
MAIR Holdings, Inc. * (g) 77,000 461
Material Sciences Corp. * 222,000 3,085
Maxwell Technologies, Inc. * (g) 123,000 2,107
CONTINUED
47
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Meade Instruments Corp. * 352,000 $ 1,123
Meadowbrook Insurance Group * 210,000 1,216
Medical Action Industries, Inc. * (g) 70,000 1,575
MEDTOX Scientific, Inc. * 131,000 1,035
MGP Ingredients, Inc. 104,000 1,915
MHI Hospitality Corp. 150,000 1,410
Michael Baker Corp. * 26,000 697
Monterey Pasta Co. * 423,000 1,658
Nanometrics, Inc. * (g) 65,000 969
National Atlantic Holdings Corp. * 201,000 2,352
National Dentex Corp. * 94,000 2,126
North Pointe Holdings Corp. * 80,800 1,131
Northwest Pipe Co. * 24,500 700
Olympic Steel, Inc. * (g) 26,000 802
On Assignment, Inc. * 169,000 2,100
OSI Systems, Inc. * (g) 118,000 2,591
Osteotech, Inc. * 297,000 1,606
PAM Transportation Services, Inc. * 36,000 689
PAREXEL International Corp. * 20,000 488
Perceptron, Inc. * 90,213 631
Pharmacopeia, Inc. * 208,000 903
Planar Systems, Inc. * (g) 86,000 1,189
Plato Learning, Inc. * 218,000 1,796
Poore Brothers, Inc. * 267,000 734
Powell Industries, Inc. * 69,000 1,452
ProCentury Corp. 113,800 1,283
R.G. Barry Corp. * 117,000 761
Rewards Network, Inc. * (g) 175,000 1,208
Rockford Corp. * (g) 249,000 894
Rocky Shoes & Boots, Inc. * (g) 62,000 1,308
Russ Berrie & Co., Inc. 79,000 1,000
Sea Containers, Ltd. 149,000 2,044
SEMCO Energy, Inc. * 124,500 705
Skechers U.S.A., Inc. * 56,000 1,084
SonicWALL, Inc. * 334,000 2,752
Southcoast Financial Corp. * 44,400 1,104
Standard Register Co. 81,000 1,470
Stepan Co. 132,000 3,498
Strategic Distribution, Inc. * 63,263 595
Superior Uniform Group, Inc. 58,000 644
SupportSoft, Inc. * 330,000 1,439
Symmetricom, Inc. * 260,000 2,571
Tasty Baking Co. 73,000 569
Texas United Bancshares, Inc. 51,000 944
The Rowe Cos. * 205,000 404
Top Tankers, Inc. 104,000 1,306
U. S. Concrete, Inc. * 68,000 824
U.S. Xpress Enterprises, Inc., A Shares * 83,000 1,370
Universal Electronics, Inc. * 40,000 718
Vignette Corp. * 33,000 559
White Electronic Designs Corp. * 197,000 1,197
Willbros Group, Inc. * 108,000 2,214
Wolverine Tube, Inc. * 100,000 529
----------
TOTAL COMMON STOCKS 136,341
----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
INVESTMENT COMPANIES (1.1%)
Equus II, Inc. * 124,801 $ 1,189
MVC Capital, Inc. 30,000 360
----------
TOTAL INVESTMENT COMPANIES 1,549
----------
INVESTMENTS IN AFFILIATES (2.6%)
Fifth Third Institutional Money Market Fund 3,743,658 3,744
----------
TOTAL INVESTMENTS IN AFFILIATES 3,744
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (13.8%)
Pool of various securities for Fifth Third
Funds $ 19,705 19,705
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 19,705
----------
TOTAL INVESTMENTS (COST $122,672) + - 112.6% 161,339
LIABILITIES IN EXCESS OF OTHER ASSETS - (12.6)% (18,075)
----------
NET ASSETS - 100.0% $ 143,264
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
48
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (94.0%)
Agrium, Inc. 92,800 $ 2,213
Andrew Corp. * 90,000 1,167
Anixter International, Inc. (g) 60,700 2,810
Ann Taylor Stores Corp. * 70,100 2,336
Applied Films Corp. * 82,100 1,845
Arkansas Best Corp. (g) 37,000 1,584
Axcelis Technologies, Inc. * 143,000 904
Big Lots, Inc. * (g) 175,000 2,340
Black Hills Corp. (g) 45,600 1,623
Bob Evans Farms, Inc. 135,000 3,604
Borland Software Corp. * 209,000 1,357
Cambior, Inc. * 50,000 158
Cash America International, Inc. 115,000 3,046
Coca-Cola Femsa, SA de CV ADR 86,700 2,589
Coeur d'Alene Mines Corp. * (g) 307,000 1,590
Colonial Properties Trust (g) 15,000 693
Commercial Capital Bancorp., Inc. 86,300 1,347
Credence Systems Corp. * (g) 215,800 1,888
Dot Hill Systems Corp. * 170,000 1,292
EGL, Inc. * (g) 54,600 2,234
Eldorado Gold Corp. * 338,700 1,721
Endurance Specialty Holdings, Ltd. 95,000 3,128
Georgia Gulf Corp. 101,100 3,458
Golden Star Resources, Ltd. * 82,000 299
Hain Celestial Group, Inc. * 136,000 3,170
Headwaters, Inc. * (g) 20,000 690
Horace Mann Educators Corp. 53,000 1,038
Houston Exploration Co. * 25,000 1,552
Input/Output, Inc. * (g) 336,500 2,648
Inter-Tel, Inc. 24,700 535
Invacare Corp. 46,900 1,622
Iowa Telecommunications Services, Inc. 20,500 346
Jackson Hewitt Tax Service, Inc. (g) 70,000 1,768
Kellwood Co. (g) 33,700 816
Lubrizol Corp. 65,000 2,973
Molina Healthcare, Inc. * 55,200 1,461
Nash Finch Co. (g) 69,000 2,042
Nordson Corp. 60,300 2,739
Odyssey Healthcare, Inc. * (g) 96,000 1,956
Pacific Sunwear of California, Inc. * 103,800 2,544
Performance Food Group Co. * 111,600 3,077
Perry Ellis International, Inc. * 117,500 2,386
Photronics, Inc. * 26,500 478
Piper Jaffray Cos., Inc. * 84,300 3,780
Platinum Underwriters Holdings, Ltd. 100,000 3,065
Polyone Corp. * (g) 160,700 1,151
PT Indosat TBK ADR 25,000 778
Raymond James Financial, Inc. 64,200 2,732
Sanderson Farms, Inc. 25,200 706
Scottish Re Group, Ltd. 150,900 3,716
Semitool, Inc. * 172,500 2,355
Service Corp. International 510,000 4,172
South Financial Group, Inc. 59,000 1,539
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Standard Register Co. 174,000 $ 3,158
Steris Corp. 69,500 1,877
Swift Transportation Co., Inc. * 60,000 1,418
The Steak n Shake Co. * 155,000 2,843
Tidewater, Inc. 46,200 2,699
U.S. Xpress Enterprises, Inc., A Shares * 105,000 1,733
Vectren Corp. (g) 75,200 2,057
Veritas DGC, Inc. * (g) 73,800 3,326
Westar Energy, Inc. (g) 89,000 1,833
Wintrust Financial Corp. 63,400 3,404
WPS Resources Corp. (g) 39,100 2,193
YRC Worldwide, Inc. * 45,100 2,247
----------
TOTAL COMMON STOCKS 131,849
----------
INVESTMENTS IN AFFILIATES (6.1%)
Fifth Third Institutional Money Market Fund 8,592,249 8,592
----------
TOTAL INVESTMENTS IN AFFILIATES 8,592
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (14.2%)
Pool of various securities for Fifth
Third Funds $ 19,918 19,918
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 19,918
----------
TOTAL INVESTMENTS (COST $138,000) + - 114.3% 160,359
LIABILITIES IN EXCESS OF OTHER ASSETS - (14.3)% (20,002)
----------
NET ASSETS - 100.0% $ 140,357
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
49
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (98.4%)
Abbott Laboratories 53,700 $ 2,317
Alcoa, Inc. 97,600 3,074
Alltel Corp. 43,900 2,635
American Electric Power Co. 48,800 1,821
American Express Co. 48,800 2,560
American International Group, Inc. 104,400 6,833
Anadarko Petroleum Corp. 39,000 4,205
Andrew Corp. * (g) 195,200 2,532
Applera Corp.- Celera Genomics Group * 224,500 2,640
Applied Materials, Inc. 224,500 4,277
Archer-Daniels-Midland Co. 117,100 3,689
Bank of America Corp. 146,400 6,475
Bank of New York Co., Inc. 205,000 6,521
Big Lots, Inc. * (g) 209,800 2,805
Bob Evans Farms, Inc. 122,000 3,257
Borg Warner, Inc. 48,800 2,690
Bristol-Myers Squibb Co. 72,000 1,641
Cadbury Schweppes PLC ADR 58,600 2,334
Carnival Corp. 14,600 756
Charles Schwab Corp. 244,000 3,609
Chevron Corp. 78,100 4,638
CIGNA Corp. 43,900 5,338
Coherent, Inc. * 97,600 3,022
ConAgra, Inc. (g) 195,200 4,046
ConocoPhillips 107,400 6,949
CSX Corp. 43,900 2,350
Deere & Co. 58,600 4,205
Dover Corp. 39,000 1,791
Dow Chemical Co. 58,600 2,479
Duke Energy Corp. (g) 107,400 3,045
E*TRADE Financial Corp. * 170,800 4,063
E. I. du Pont de Nemours & Co. 65,400 2,560
EMC Corp. * 161,000 2,157
Federated Department Stores, Inc. 33,465 2,230
Florida East Coast Industries, Inc. 73,200 3,571
Foot Locker, Inc. 78,100 1,774
General Dynamics Corp. 34,200 3,980
General Electric Corp. 107,400 3,517
Georgia Gulf Corp. 19,500 667
Global Industries, Ltd. * 146,400 2,050
H.J. Heinz Co. 68,300 2,318
Harris Corp. 102,500 4,760
Hartford Financial Services Group, Inc. 39,000 3,207
Health Management Associates, Inc., Class A 68,300 1,436
Hewlett-Packard Co. 136,600 4,259
Home Depot, Inc. 87,800 3,560
Honda Motor Co., Ltd. 73,200 2,083
Honeywell International, Inc. 146,400 5,625
Horace Mann Educators Corp. 214,700 4,206
Humana, Inc. * 146,400 8,164
IBM Corp. 68,300 5,553
Input/Output, Inc. * (g) 48,800 384
CONTINUED
SHARES VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Intel Corp. 122,000 $ 2,595
J.P. Morgan Chase & Co. 195,200 7,758
JAKKS Pacific, Inc. * (g) 97,600 2,216
Jefferson-Pilot Corp. 48,800 2,847
Jones Apparel Group, Inc. 48,800 1,526
K2, Inc. * (g) 63,400 754
Kerr-McGee Corp. (g) 34,015 3,755
KeyCorp (g) 97,600 3,454
Laboratory Corp. of America Holdings * (g) 43,900 2,575
Lubrizol Corp. 83,000 3,797
Manpower, Inc. 48,800 2,627
Marathon Oil Corp. 117,100 9,000
Masco Corp. 73,200 2,170
McDonald's Corp. 107,400 3,761
Merrill Lynch & Co., Inc. 97,600 7,327
Methode Electronics, Inc. 161,000 1,980
MetLife, Inc. 43,900 2,202
Molson Coors Brewing Co., Class B (g) 24,400 1,525
Motorola, Inc. 73,200 1,662
National City Corp. (g) 73,200 2,502
Natuzzi S.p.A. ADR 39,000 289
New York Community Bancorp, Inc. (g) 97,600 1,665
New York Times Co. (g) 97,600 2,762
NiSource, Inc. 83,000 1,704
Pall Corp. 156,200 4,499
Parker Hannifin Corp. 24,400 1,849
Payless ShoeSource, Inc. * (g) 48,800 1,189
Pepco Holdings, Inc. 161,000 3,705
Pfizer, Inc. 195,200 5,013
Piper Jaffray Cos., Inc. * 48,800 2,188
Royal Dutch Shell PLC ADR, A Shares 58,600 3,991
Safeway, Inc. 195,200 4,576
Schering-Plough Corp. 165,900 3,177
Schlumberger, Ltd. (g) 48,800 6,220
Snap-On, Inc. (g) 29,300 1,176
Sprint Nextel Corp. 97,600 2,234
Standard Register Co. 195,200 3,543
Stanley Works 73,200 3,590
Stewart & Stevenson Services, Inc. 117,100 3,041
SunTrust Banks, Inc. 43,900 3,137
SUPERVALU, Inc. 126,900 4,052
Symmetricom, Inc. * 73,200 724
TD Ameritrade Holding Corp. * 122,000 2,469
The Walt Disney Co. 131,800 3,336
Tidewater, Inc. 39,000 2,278
U.S. Bancorp. 78,100 2,336
U.S. Xpress Enterprises, Inc., A Shares * 19,500 322
Union Pacific Corp. 58,600 5,183
United States Steel Corp. (g) 48,800 2,916
United Technologies Corp. 19,500 1,138
Verizon Communications, Inc. 146,400 4,635
Vishay Intertechnology, Inc. * 73,200 1,159
Whirlpool Corp. (g) 39,000 3,147
CONTINUED
50
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Wyeth 39,000 $ 1,804
YRC Worldwide, Inc. * (g) 29,300 1,460
----------
TOTAL COMMON STOCKS 339,198
----------
INVESTMENTS IN AFFILIATES (1.6%)
Fifth Third Institutional Money Market Fund 5,655,964 5,656
----------
TOTAL INVESTMENTS IN AFFILIATES 5,656
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (13.3%)
Pool of various securities for Fifth Third
Funds $ 45,760 45,760
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 45,760
----------
TOTAL INVESTMENTS (COST $288,301) + - 113.3% 390,614
LIABILITIES IN EXCESS OF OTHER ASSETS - (13.3)% (45,831)
----------
NET ASSETS - 100.0% $ 344,783
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (97.4%)
Abbott Laboratories 349,685 $ 15,089
Alcoa, Inc. 140,534 4,427
Alltel Corp. 69,292 4,160
American Electric Power Co. 167,881 6,265
American International Group, Inc. 162,647 10,647
Anadarko Petroleum Corp. 92,458 9,969
Bank of America Corp. 300,493 13,291
Bank of New York Co., Inc. 463,961 14,759
Black & Decker Corp. 45,548 3,931
Bristol-Myers Squibb Co. 301,349 6,868
Cadbury Schweppes PLC ADR 352,737 14,049
Carnival Corp. 187,278 9,694
Caterpillar, Inc. 134,335 9,121
Chevron Corp. 262,451 15,584
CIT Group, Inc. 58,765 3,135
ConAgra, Inc. (g) 252,822 5,241
ConocoPhillips 303,392 19,630
Deere & Co. 90,801 6,516
Dow Chemical Co. 273,559 11,572
E. I. du Pont de Nemours & Co. 184,325 7,216
Edison International 90,219 3,953
Federated Department Stores, Inc. 33,286 2,218
FirstEnergy Corp. 89,837 4,501
FPL Group, Inc. (g) 190,918 7,979
Gannett, Inc. (g) 278,234 17,195
General Dynamics Corp. 92,589 10,773
H.J. Heinz Co. 372,153 12,631
Hartford Financial Services Group, Inc. 208,698 17,161
Health Management Associates, Inc., Class A 265,964 5,590
Hewlett-Packard Co. 311,985 9,727
Honda Motor Co., Ltd. 462,930 13,170
Honeywell International, Inc. 277,888 10,676
IBM Corp. 115,826 9,417
Intel Corp. 257,173 5,470
J.P. Morgan Chase & Co. 516,401 20,526
KeyCorp (g) 416,645 14,745
Laboratory Corp. of America Holdings * (g) 69,374 4,069
Lubrizol Corp. 138,478 6,334
Manpower, Inc. 92,292 4,968
Marathon Oil Corp. 218,035 16,760
Masco Corp. 184,662 5,475
McDonald's Corp. 360,453 12,619
Merrill Lynch & Co., Inc. (g) 255,495 19,180
MetLife, Inc. (g) 436,815 21,911
Molson Coors Brewing Co., Class B (g) 219,257 13,704
National City Corp. (g) 230,348 7,873
Parker Hannifin Corp. 135,801 10,290
Pfizer, Inc. 627,223 16,107
R.R. Donnelley & Sons Co. 92,394 3,012
Royal Dutch Shell PLC ADR, A Shares 347,098 23,642
CONTINUED
51
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Safeway, Inc. (g) 465,446 $ 10,910
Sprint Nextel Corp. 358,983 8,217
SunTrust Banks, Inc. 254,632 18,193
United Technologies Corp. 161,912 9,451
Verizon Communications, Inc. (g) 486,985 15,418
----------
TOTAL COMMON STOCKS 585,029
----------
INVESTMENTS IN AFFILIATES (2.5%)
Fifth Third Institutional Money Market Fund 15,311,890 15,312
----------
TOTAL INVESTMENTS IN AFFILIATES 15,312
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (18.4%)
Pool of various securities for Fifth
Third Funds $ 110,337 110,337
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 110,337
----------
TOTAL INVESTMENTS (COST $582,773) + - 118.3% 710,678
LIABILITIES IN EXCESS OF OTHER ASSETS - (18.3)% (109,987)
----------
NET ASSETS - 100.0% $ 600,691
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
INVESTMENTS IN
AFFILIATES (H) (100.3%)
Fifth Third Disciplined Large Cap Value Fund 1,891,429 $ 26,612
Fifth Third High Yield Bond Fund 149,570 1,508
Fifth Third Institutional Money Market Fund 2,435,668 2,436
Fifth Third Intermediate Bond Fund 310,508 2,993
Fifth Third International Equity Fund 1,520,134 18,986
Fifth Third Large Cap Core Fund 1,412,749 21,290
Fifth Third Mid Cap Growth Fund 929,703 16,456
Fifth Third Multi Cap Value Fund 498,046 12,685
Fifth Third Quality Growth Fund * 2,139,818 36,613
Fifth Third Small Cap Growth Fund * 627,271 9,547
Fifth Third Small Cap Value Fund 332,941 7,218
----------
TOTAL INVESTMENTS IN AFFILIATES 156,344
----------
TOTAL INVESTMENTS (COST $128,351) + - 100.3% 156,344
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (427)
----------
NET ASSETS - 100.0% $ 155,917
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
52
LIFEMODEL MODERATELY AGGRESSIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
INVESTMENTS IN AFFILIATES (H) (100.1%)
Fifth Third Bond Fund 1,527,164 $ 15,073
Fifth Third Disciplined Large Cap Value Fund 3,153,504 44,370
Fifth Third High Yield Bond Fund 1,513,362 15,255
Fifth Third Institutional Money Market Fund 8,711,920 8,712
Fifth Third Intermediate Bond Fund 2,188,875 21,101
Fifth Third International Equity Fund 2,644,344 33,028
Fifth Third Large Cap Core Fund 2,256,230 34,001
Fifth Third Mid Cap Growth Fund 1,487,179 26,323
Fifth Third Multi Cap Value Fund 787,307 20,053
Fifth Third Quality Growth Fund * 3,546,196 60,675
Fifth Third Short Term Bond Fund 1,948,686 18,103
Fifth Third Small Cap Growth Fund * 907,120 13,806
Fifth Third Small Cap Value Fund 479,783 10,402
----------
TOTAL INVESTMENTS IN AFFILIATES 320,902
----------
TOTAL INVESTMENTS (COST $274,119) + - 100.1% 320,902
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)% (277)
----------
NET ASSETS - 100.0% $ 320,625
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL MODERATE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
INVESTMENTS IN AFFILIATES (H) (100.0%)
Fifth Third Bond Fund 4,830,670 $ 47,679
Fifth Third Disciplined Large Cap Value Fund 3,507,654 49,353
Fifth Third High Yield Bond Fund 2,388,932 24,080
Fifth Third Institutional Money Market Fund 1,669,044 1,669
Fifth Third Intermediate Bond Fund 8,406,837 81,043
Fifth Third International Equity Fund 3,411,968 42,615
Fifth Third Large Cap Core Fund 2,515,087 37,902
Fifth Third Mid Cap Growth Fund 1,574,212 27,864
Fifth Third Multi Cap Value Fund 853,207 21,731
Fifth Third Quality Growth Fund * 3,988,424 68,242
Fifth Third Short Term Bond Fund 5,661,509 52,595
Fifth Third Small Cap Growth Fund * 1,008,428 15,348
Fifth Third Small Cap Value Fund 536,533 11,632
----------
TOTAL INVESTMENTS IN AFFILIATES 481,753
----------
TOTAL INVESTMENTS (COST $442,076) + - 100.0% 481,753
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (140)
----------
NET ASSETS - 100.0% $ 481,613
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
53
LIFEMODEL MODERATELY CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
INVESTMENTS IN AFFILIATES (H) (100.1%)
Fifth Third Bond Fund 1,339,143 $ 13,217
Fifth Third Disciplined Large Cap Value Fund 689,521 9,702
Fifth Third High Yield Bond Fund 510,428 5,145
Fifth Third Institutional Money Market Fund 1,945,238 1,945
Fifth Third Intermediate Bond Fund 2,109,124 20,332
Fifth Third International Equity Fund 673,587 8,413
Fifth Third Large Cap Core Fund 417,976 6,299
Fifth Third Mid Cap Growth Fund 264,401 4,680
Fifth Third Multi Cap Value Fund 140,515 3,579
Fifth Third Quality Growth Fund * 768,288 13,145
Fifth Third Short Term Bond Fund 1,646,464 15,296
Fifth Third Small Cap Growth Fund * 149,197 2,271
Fifth Third Small Cap Value Fund 78,888 1,710
----------
TOTAL INVESTMENTS IN AFFILIATES 105,734
----------
TOTAL INVESTMENTS (COST $95,644) + - 100.1% 105,734
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)% (76)
----------
NET ASSETS - 100.0% $ 105,658
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL CONSERVATIVE FUND SM
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
INVESTMENTS IN AFFILIATES (H) (100.3%)
Fifth Third Bond Fund 1,046,933 $ 10,333
Fifth Third Disciplined Large Cap Value Fund 241,392 3,396
Fifth Third High Yield Bond Fund 285,603 2,879
Fifth Third Institutional Money Market Fund 38,260 38
Fifth Third Intermediate Bond Fund 1,786,249 17,220
Fifth Third International Equity Fund 179,424 2,241
Fifth Third Large Cap Core Fund 114,106 1,720
Fifth Third Mid Cap Growth Fund 66,099 1,170
Fifth Third Multi Cap Value Fund 35,055 893
Fifth Third Quality Growth Fund * 267,839 4,583
Fifth Third Short Term Bond Fund 1,239,386 11,514
Fifth Third Small Cap Growth Fund * 63,362 964
Fifth Third Small Cap Value Fund 34,102 739
----------
TOTAL INVESTMENTS IN AFFILIATES 57,690
----------
TOTAL INVESTMENTS (COST $55,715) + - 100.3% 57,690
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (144)
----------
NET ASSETS - 100.0% $ 57,546
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
54
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS (6.0%)
Altria Group, Inc. 15,650 $ 1,132
American Capital Strategies Ltd. 15,400 547
Bank of America Corp. 19,900 880
BB&T Corp. 4,800 187
Chevron Corp. 8,430 501
Citigroup, Inc. 16,925 788
FPL Group, Inc. 13,650 570
General Electric Corp. 10,735 352
Marshall & Ilsley Corp. (g) 4,400 185
North Fork Bancorp., Inc. (g) 10,500 270
PepsiCo, Inc. 1,800 103
Procter & Gamble Co. 11,030 653
Southern Co. (g) 14,900 519
Sysco Corp. 9,525 292
U.S. Bancorp. 20,000 598
Verizon Communications, Inc. 6,950 220
Wachovia Corp. (g) 11,475 629
Wells Fargo & Co. 15,945 995
----------
TOTAL COMMON STOCKS 9,421
----------
CORPORATE BONDS (24.0%)
AMVESCAP PLC, 5.38%, 2/27/13 $ 500 488
Bankers Trust New York, 7.25%, 10/15/11 1,000 1,107
Bear Stearns Cos., Inc., 4.65%, 7/2/18 1,000 920
Bear Stearns Cos., Inc., Series 2003-AC7,
Class A2, 5.25%, 1/25/34 841 832
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 500 482
Comcast Cable, 7.13%, 6/15/13 500 538
Core Invest Grade Trust, 4.66%, 11/30/07 454 448
Countrywide Home Loans, 4.59%, 10/25/33 1,466 1,400
Countrywide Home Loans, 5.04%, 4/20/35 (d) 568 557
Cullen/Frost Cap Trust I, 5.42%, 3/1/34 (d) 1,000 1,028
CVS Corp., 7.77%, 1/10/12 845 929
Deutsche Mortgage Securities, Inc.,
Series 2004-2, Class A3, 3.78%, 1/25/34 317 315
Developers Diversified Realty, 3.88%, 1/30/09 1,000 958
Emigrant Cap Trust I, 5.73%, 12/10/33 (d) 1,000 993
First Tennessee Cap II, 6.30%, 4/15/34 1,500 1,479
Goldman Sachs Group, Inc., 5.25%, 10/15/13 1,000 990
HBOS PLC, 5.38%, 11/1/13 (d) 2,000 1,984
Hutchison Whampoa International,
Ltd., 6.50%, 2/13/13 1,000 1,054
HVB Funding Trust I, 8.74%, 6/30/31 1,000 1,303
International Lease Finance Corp.,
4.38%, 11/1/09 1,000 967
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Kraft Foods, Inc., 6.25%, 6/1/12 $ 1,500 $ 1,567
Lehman Brothers Holdings, 4.28%, 10/22/08 (d) 1,000 1,000
Lehman Brothers TRAINS, 6.50%,
8/15/08 (d) (e) 485 489
Marsh & McLennan Cos., Inc., 5.88%, 8/1/33 500 473
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A,
4.53%, 12/25/32 219 220
Motorola, Inc., 6.50%, 11/15/28 500 540
Pacific Gas & Electric, 4.20%, 3/1/11 1,000 953
Pemex Project Funding Master Trust,
7.88%, 2/1/09 1,000 1,066
Public Service Oklahoma, 4.85%, 9/15/10 500 492
Radian Group, Inc., 5.63%, 2/15/13 500 497
RBS Capital Trust, Class B, 6.80%, 3/31/08 500 508
SLM Corp., 3.66%, 4/1/09 (d) 1,000 974
SLM Corp., 4.74%, 2/1/10 (d) 1,000 970
SLM Corp., 5.77%, 11/21/13 (d) 1,000 990
Sprint Capital Corp, 8.38%, 3/15/12 1,500 1,730
TCI Communications, Inc., 7.88%, 8/1/13 * 1,100 1,230
Union Pacific Corp., 3.63%, 6/1/10 500 470
Union Planters Corp., 4.38%, 12/1/10 500 486
Washington Mutual, Inc., 4.82%, 10/25/32 91 91
Washington Mutual, Inc.,
Series 2003-AR10, Class A4,
4.08%, 10/25/33 1,500 1,484
Wells Fargo Mortgage Backed
Securities Trust, 4.98%, 11/25/34 1,000 937
Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,655
----------
TOTAL CORPORATE BONDS 37,594
----------
FOREIGN BONDS (1.3%)
Korea Development Bank, 3.88%, 3/2/09 1,000 966
Russian Federation, 8.25%, 3/31/10 * 1,000 1,064
----------
TOTAL FOREIGN BONDS 2,030
----------
CORPORATE BOND EQUIVALENTS (C) (40.5%)
AAG Holding Co., Inc., $1.17 20,000 506
Abbey National PLC, Series B $1.84 24,900 649
Abbey National PLC, Series C $1.84 60,600 1,575
AMBAC Financial Group, Inc., $1.49 54,100 1,318
AMBAC Financial Group, Inc., $1.75 52,895 1,341
BAC Capital Trust I, $1.75 64,500 1,647
BAC Capital Trust VI, $1.75 48,600 1,260
Bank One Capital V, $2.00 76,300 1,909
CONTINUED
55
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
CORPORATE BOND EQUIVALENTS (C),
CONTINUED
BBC Capital Trust II, $2.13 31,000 $ 804
Bear Stearns Capital Trust III, $1.95 58,900 1,477
Citigoup Capital VII, $1.78 124,925 3,192
Cleveland Electric Financial Trust I, $2.25 10,000 260
Consolidated Edison, $1.81 50,700 1,324
Corp-Backed Trust Certs (CBTCS), $1.53 60,000 1,444
Corp-Backed Trust Certs (CBTCS), $1.56 33,500 817
Corp-Backed Trust Certs (CBTCS), $1.80 15,800 397
Corp-Backed Trust Certs (CBTCS), $1.97 2,200 55
Corp-Backed Trust Certs (CBTCS), $2.20 1,800 45
Corts Countrywide Capital II, $2.00 10,000 255
Corts Trust II Safeco Capital I, $2.18 10,000 272
Corts-First Union Capital II, $1.88 17,700 445
Corts-Sherwin Williams, $1.81 17,600 444
Corts-TR Verizon Global, $3.13 54,500 1,398
Developers Diversified Realty, $2.15 48,300 1,259
Dominion CNG Capital Trust I, $1.95 39,800 1,005
Duke Realty Corp. $1.67 30,000 737
Duke Realty Corp., $2.11 40,800 1,027
Duquesne Light Co., $1.68 24,000 617
Energy East Capital, $2.06 5,000 127
Entergy Arkansas, Inc., $1.50 80,600 2,028
Entergy Mississippi, Inc., $1.50 29,300 732
Federal Realty Investment Trust, $2.13 (g) 43,300 1,106
Financial Security Assurance
Holdings, $1.56 90,750 2,264
Fleet Captial Trust VII, $1.80 29,200 742
General Electric Capital Corp., $1.53 19,000 480
General Electric Capital Corp., $1.66 59,000 1,505
Glenborough Realty, Series A, $1.94 20,661 523
Harris Preferred Capital, Series A, $1.84 31,800 802
HRPT Properties Trust, $2.47 26,100 653
HRPT Properties Trust, Series B, $2.19 22,900 586
HSBC Finance Corp. $1.72 32,800 839
HSBC USA, Inc., $1.04 60,000 1,562
Huntington Preferred Cap, Inc., $1.97 15,507 435
ING Group NV, $1.80 (g) 41,200 1,072
Kimco Reality Preferred, $1.66 39,994 1,011
MBNA Corp., $2.03 37,800 992
Merrill Lynch Preferred Capital, $0.99 80,000 2,053
ML Capital Trust III, $1.75 9,800 252
Morgan Stanley Capital II, $1.81 61,525 1,550
National Rural Utility CFC, $1.91 10,000 254
Nordstrom (CBTCS), $1.91 10,000 258
CONTINUED
SHARES VALUE
------------ ----------
CORPORATE BOND EQUIVALENTS (C),
CONTINUED
Preferred Plus Trust NAI-1, $2.01 4,400 $ 113
PS Business Parks, Inc., $2.38 10,000 254
Public Credit & Repack Securities, $1.78 15,600 393
Public Storage, Inc., Series A, $2.45 15,000 413
Public Storage, Inc., Series S, $1.97 10,000 255
Puget Sound Energy Capital Trust, $2.10 13,700 349
Regions Financial Trust I, $2.00 66,500 1,680
Rouchester Gas & Electric, $1.66 42,800 1,111
Saturns JPM, $1.78 12,000 307
Stilwell Financial, $1.97 36,800 937
Suntrust Capital V, $1.76 46,600 1,185
Torchmark Capital Trust I, $1.94 58,819 1,493
USB Capital V, $1.81 14,100 360
Wachovia Funding, Series A, $1.81 79,000 2,180
Wells Fargo Capital Trust V, $1.75 18,600 475
Wells Fargo Capital Trust VI, $1.74 74,550 1,905
Wells Fargo Capital Trust VII, $1.46 33,500 817
----------
TOTAL CORPORATE BOND EQUIVALENTS 63,532
----------
PREFERRED STOCKS (6.1%) (C)
Aegon NV, $21.02 * 20,000 506
Duke Realty Corp., $27.80 * 10,000 250
Equity Residential Properties, $2.15 24,500 634
First Tennessee Bank, $50.72 (e) 1,000 1,010
Freddie Mac, $2.50 20,000 902
Freddie Mac, $2.55 (g) 10,000 452
Freddie Mac, $2.85 25,500 1,275
Goldman Sachs Group, Inc., $1.16 40,000 1,032
Lehman Brothers, $1.92 50,000 1,267
MetLife, Inc., $1.22 40,000 1,044
Source Capital, $2.40 35,600 1,210
----------
TOTAL PREFERRED STOCKS 9,582
----------
REAL ESTATE INVESTMENT
TRUSTS (8.8%) (I)
AMB Property Corp. 9,450 493
Developers Diversified Realty, Corp. (g) 14,500 714
Duke-Weeks Realty Corp. 21,500 780
Equity Residential Properties Trust 21,700 920
Health Care Property Investors, Inc. (g) 35,750 992
Kimco Realty Corp. 52,500 1,842
ProLogis 18,750 960
Simon Property Group, Inc. (g) 24,254 2,010
Thornburg Mortgage, Inc. (g) 41,600 1,066
Vornado Realty Trust 22,100 1,953
Weingarten Realty Investors 49,575 2,010
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 13,740
----------
CONTINUED
56
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. GOVERNMENT AGENCIES (2.5%)
FANNIE MAE (1.1%)
5.13%, 1/2/14 $ 1,000 $ 998
4.28%, 7/1/18 806 788
----------
1,786
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (1.4%)
5.50%, 8/16/27 1,150 1,166
4.89%, 7/16/34 1,000 970
----------
2,136
----------
TOTAL U.S. GOVERNMENT AGENCIES 3,922
----------
U.S. TREASURY NOTES (1.3%)
7.00%, 7/15/06 (g) 2,000 2,021
----------
TOTAL U.S. TREASURY NOTES 2,021
----------
INVESTMENT COMPANIES (8.8%)
1838 Bond Debenture Trading 127,000 2,290
American Income Fund, Inc. 135,400 1,075
Blackrock Income Trust (g) 108,600 694
Blackrock North American Government Income 225,000 2,466
Eaton Vance Tax-Advantaged Dividend Income Fund 23,600 544
ING Prime Rate Trust 160,400 1,113
MFS Government Markets Income Trust 217,400 1,420
MFS Intermediate Income Trust 49,000 306
Pioneer Interest Shares 90,700 994
Templeton Global Income Fund, Inc. 61,374 525
Van Kampen Bond Fund 64,800 1,110
Van Kampen Senior Income Trust 152,000 1,234
----------
TOTAL INVESTMENT COMPANIES 13,771
----------
INVESTMENTS IN AFFILIATES (0.7%)
Fifth Third Institutional Money Market Fund 1,066,196 1,066
----------
TOTAL INVESTMENTS IN AFFILIATES 1,066
----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (6.0%)
Pool of various securities for Fifth
Third Funds $ 9,417 9,417
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 9,417
----------
TOTAL INVESTMENTS (COST $161,024) + - 106.0% 166,096
LIABILITIES IN EXCESS OF OTHER ASSETS - (6.0)% (9,338)
----------
NET ASSETS - 100.0% $ 156,758
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
DIVIDEND GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (98.6%)
3M Co. 2,885 $ 210
Altria Group, Inc. 5,590 404
American International Group, Inc. 7,975 522
Apache Corp. 3,155 238
Automatic Data Processing, Inc. 2,275 100
Bank of America Corp. 6,175 273
Becton, Dickinson & Co. 10,050 651
C.H. Robinson Worldwide, Inc. (g) 7,215 292
Carnival Corp. 4,150 215
Chevron Corp. 6,100 362
Citigroup, Inc. 6,310 294
Coca-Cola Co. 10,935 452
Ecolab, Inc. (g) 13,370 479
Electronic Arts, Inc. * 3,790 207
Eli Lilly & Co. 5,680 322
Emerson Electric Corp. 7,720 598
Exxon Mobil Corp. 14,365 902
General Dynamics Corp. 3,915 456
General Electric Corp. 26,270 860
Graco, Inc. 7,760 312
Home Depot, Inc. 7,665 310
IBM Corp. 2,615 213
Johnson & Johnson 15,530 894
Johnson Controls, Inc. 6,315 437
Kellogg Co. 6,495 279
Lowe's Cos., Inc. 1,445 92
Marriott International, Inc., Class A 6,550 436
Marshall & Ilsley Corp. (g) 11,010 462
McGraw-Hill Cos., Inc. 4,365 223
Medtronic, Inc. 11,605 655
Merrill Lynch & Co., Inc. 6,425 482
Microchip Technology, Inc. 8,880 333
Microsoft Corp. 16,295 459
Nike, Inc., Class B (g) 3,155 255
Novartis AG ADR 5,230 288
Nuveen Investments, Inc. 6,855 311
Paychex, Inc. 3,500 127
PepsiCo, Inc. 15,045 861
Pfizer, Inc. 7,215 185
Praxair, Inc. 11,910 627
Procter & Gamble Co. 16,510 978
QUALCOMM, Inc. 8,125 390
Stryker Corp. 3,970 198
Sysco Corp. 4,330 133
Target Corp. 3,865 212
Texas Instruments, Inc. 6,855 200
The Hershey Company (g) 9,025 462
U.S. Bancorp. 12,015 359
United Technologies Corp. 14,435 842
Wachovia Corp. (g) 13,005 713
Walgreen Co. 2,705 117
Weatherford International Ltd. * 6,135 275
CONTINUED
57
DIVIDEND GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMON STOCKS, CONTINUED
Wells Fargo & Co. 12,000 $ 749
XTO Energy, Inc. 6,135 301
----------
TOTAL COMMON STOCKS 22,007
----------
INVESTMENTS IN AFFILIATES (0.7%)
Fifth Third Institutional Money Market
Fund 151,627 152
----------
TOTAL INVESTMENTS IN AFFILIATES 152
----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (12.0%)
Pool of various securities for Fifth Third
Funds $ 2,679 2,679
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 2,679
----------
TOTAL INVESTMENTS (COST $24,064) + - 111.3% 24,838
LIABILITIES IN EXCESS OF OTHER ASSETS - (11.3)% (2,521)
----------
NET ASSETS - 100.0% $ 22,317
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCKS (99.6%)
Accenture Ltd., Class A 25,000 $ 788
Advanced Energy Industries, Inc. * (g) 110,000 1,726
Amylin Pharmaceuticals, Inc. * (g) 35,000 1,484
Applied Materials, Inc. 60,000 1,143
Arena Pharmaceuticals, Inc. * 57,250 972
ARM Holdings PLC ADR (g) 125,000 889
ASML Holding NV * (g) 50,000 1,130
Atmel Corp. * 230,000 909
ATMI, Inc. * 32,500 1,092
BEA Systems, Inc. * 150,000 1,556
BearingPoint, Inc. * 150,000 1,233
Blackboard, Inc. * 45,000 1,159
Ceradyne, Inc. * 15,000 859
Comverse Technology, Inc. * (g) 46,000 1,260
Cytyc Corp. * (g) 40,000 1,204
DearlerTrack Holdings, Inc. * 26,000 519
Eastman Kodak Co. 45,750 1,148
Electronic Arts, Inc. * 20,000 1,092
EMC Corp. * 110,000 1,474
EMCORE Corp. * 100,000 817
FEI Co. * 43,500 1,004
First Data Corp. 53,000 2,389
Freescale Semiconductor, Inc., Class A * (g) 72,500 1,823
Heidrick & Struggles International, Inc. * 23,500 789
Informatica Corp. * 125,000 1,840
Mattson Technology, Inc. * 100,000 1,300
Micron Technology, Inc. * (g) 80,000 1,174
Microstrategy, Inc., Class A * 11,500 1,105
MKS Instruments, Inc. * 50,000 1,088
Monster Worldwide, Inc. * (g) 20,000 853
NDS Group PLC ADR * 30,000 1,294
Nektar Therapeutics * 51,100 1,012
Palm, Inc. * (g) 42,850 1,692
PDL BioPharma, Inc. * 32,500 947
Pharmaceutical Product Development, Inc. 13,500 934
QUALCOMM, Inc. 35,000 1,679
Quest Software, Inc. * 100,000 1,584
Red Hat, Inc. * (g) 60,000 1,737
Rockwell Automation, Inc. 22,350 1,477
Unica Corp. * 3,900 55
Varian Semiconductor Equipment
Associates, Inc. * (g) 35,000 1,733
Veeco Instruments, Inc. * (g) 70,000 1,522
Ventiv Health, Inc. * 30,000 765
Vertex Pharmaceuticals, Inc. * (g) 31,250 1,115
WebEx Communications, Inc. * (g) 49,000 1,190
----------
TOTAL COMMON STOCKS 54,555
----------
CONTINUED
58
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
INVESTMENTS IN AFFILIATES (1.2%)
Fifth Third Institutional Money Market Fund 649,434 $ 649
----------
TOTAL INVESTMENTS IN AFFILIATES 649
----------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR SECURITIES
LENDING (31.4%)
Pool of various securities for Fifth Third
Funds $ 17,174 17,174
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 17,174
----------
TOTAL INVESTMENTS (COST $67,533) + - 132.2% 72,378
LIABILITIES IN EXCESS OF OTHER ASSETS - (32.2)% (17,632)
----------
NET ASSETS - 100.0% $ 54,746
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
COMMON STOCK (0.1%)
UNITED STATES (0.1%)
Synthes, Inc. 2,018 $ 242
----------
TOTAL COMMON STOCK 242
----------
FOREIGN STOCKS (90.6%)
AUSTRALIA (3.7%)
Alumina, Ltd. 59,739 340
Amcor, Ltd. 46,386 241
AMP, Ltd. 31,657 197
Ansell, Ltd. 1,145 9
Australia & New Zealand Banking Group, Ltd. 14,034 265
Australian Gas & Light Co. 5,010 68
BHP Billiton, Ltd. 184,704 3,613
BlueScope Steel, Ltd. 37,741 224
Boral, Ltd. 30,732 209
Brambles Industries, Ltd. 25,713 193
Caltex Australia, Ltd. 20,530 301
Coca-Cola Amatil, Ltd. 18,944 110
Coles Myer, Ltd. 10,427 83
Commonwealth Bank of Australia 29,387 995
CSL, Ltd. 3,164 104
CSR, Ltd. 49,853 160
Foster's Group, Ltd. 46,300 185
Insurance Australia Group 43,892 185
James Hardie Industries NV 24,574 164
John Fairfax Holdings, Ltd. 8,521 27
Leighton Holdings, Ltd. 2,707 42
Lend Lease Corp., Ltd. 4,578 50
Macquarie Bank, Ltd. 5,426 281
Macquarie Infrastructure Group 81,453 218
Mayne Nickless, Ltd. 9,701 25
Mayne Pharma, Ltd. * 9,701 19
National Australia Bank, Ltd. 39,390 1,012
Newcrest Mining, Ltd. 17,110 340
Onesteel, Ltd. 29,255 83
Orica, Ltd. 14,750 245
Origin Energy, Ltd. 147,089 814
Paperlinx, Ltd. 23,747 62
Patrick Corp., Ltd. 12,024 62
QBE Insurance Group, Ltd. 17,030 250
Rinker Group, Ltd. 49,029 624
Rio Tinto, Ltd. 16,022 921
Santos, Ltd. 108,016 1,073
Sonic Healthcare, Ltd. 1,643 19
Stockland Trust Group 455 2
Suncorp Metway, Ltd. 5,353 90
TABCORP Holdings, Ltd. 10,500 121
Telstra Corp., Ltd. 51,965 157
Transurban Group 6,115 33
Westfarmers, Ltd. 8,854 255
Westpac 21,491 379
Woodside Petroleum, Ltd. 59,092 2,025
Woolworths, Ltd. 27,586 361
----------
17,236
----------
CONTINUED
59
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
AUSTRIA (0.8%)
Bank Austria Creditanstalt 4,208 $ 513
Boehler-Uddeholm AG 368 71
Erste Bank Der Oesterreichischen 13,922 776
Sparkassen AG
Flughafen Wein AG 1,211 96
Immofinanz Immobilien Anlagen * 26,674 275
Mayr-Melnhof Karton AG 500 75
Oesterreichische Elektrizitaetswirtschafts AG 544 243
OMV AG 12,811 906
RHI AG * 1,954 55
Telekom Austria AG 19,977 483
Voest-Alpine Stahl AG 700 82
Wienerberger Baust 2,610 115
----------
3,690
----------
BELGIUM (0.7%)
Agfa Gevaert NV 1,931 33
Bekaert NV 325 32
Belgacom SA 3,263 101
Delhaize Group 1,553 107
Dexia 25,883 636
Fortis 36,918 1,285
Groupe Bruxelles Lambert SA 1,616 180
InBev NV 3,790 179
KBC Bancassurance Holding SA 3,615 363
Solvay SA 1,841 208
UCB SA 4,219 208
Umicore 717 94
----------
3,426
----------
BERMUDA (0.2%)
Cheung Kong Infrastructure Holdings, Ltd. 20,000 62
Esprit Holdings, Ltd. 49,500 430
Johnson Electric Holdings, Ltd. 70,000 69
Kerry Properties, Ltd. 18,935 62
Li & Fung, Ltd. 78,000 145
SCMP Group, Ltd. 14,000 5
Shagri-La Asia, Ltd. 47,021 76
Yue Yuen Industrial Holdings, Ltd. 20,500 64
----------
913
----------
BRAZIL (0.5%)
Aracruz Celulose SA, B Shares 16,000 62
Arcelor Brasil SA * 2,690 40
Banco Itau Holding Financeira SA 16,000 486
Centrais Eletricas Brasileiras SA, B Shares 3,988,000 76
Companhia de Bebidas das Americas 119,000 42
Companhia Siderurgica Nacional SA 3,000 88
Companhia Vale do Rio Doce, A Shares 20,100 889
Souza Cruz SA 2,900 41
Tele Centro Oeste Celular Participacoes SA 3,000 43
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
BRAZIL, CONTINUED
Tele Norte Leste Participacoes SA 10,000 $ 176
Telesp Celular Participacoes SA * 7,000 34
Unibanco - Uniao de Bancos Brasileiros SA GDR 2,800 236
Usinas Siderurgicas de Minas
Gerais SA, A Shares 3,200 105
----------
2,318
----------
DENMARK (0.5%)
A P Moller - Maersk AS 10 100
Danisco AS 900 69
Danske Bank 21,687 761
DSV AS 1,400 195
GN Store Nord AS 12,700 181
Novo Nordisk AS 10,730 601
Novozymes AS 1,850 103
TDC AS 5,900 375
Vestas Wind Systems AS * 5,550 109
William Demant Holdings AS * 1,000 57
----------
2,551
----------
FINLAND (1.3%)
Cargotec Corp., B Shares * 1,677 64
Fortum Oyj 7,489 167
Kesko Oyj, B Shares 4,103 122
Kone Oyj, B Shares * 3,354 135
Metso Oyj, B Shares 4,716 154
Neste Oil Oyj * 2,291 74
Nokia Oyj 213,031 3,895
Outokumpo Oyj 9,396 162
Sampo Insurance Co. 13,856 270
Stora Enso Oyj 20,205 280
TietoEnator Oyj 5,565 216
UPM-Kym'mene Oyj 17,759 363
Uponor Oyj 1,282 32
Wartsila Corp. Oyj, B Shares 2,611 86
----------
6,020
----------
FRANCE (7.8%)
Accor SA 12,681 760
Alcatel * 58,712 774
Alstom * 3,934 299
Arcelor 16,705 587
Atos Origin SA * 1,078 80
Autoroutes du Sud de la France 4,131 252
AXA SA 86,515 2,933
BNP Paribas SA 40,417 3,604
Bouygues 10,422 571
Business Objects SA * 2,957 122
Cap Gemini * 4,365 199
Carrefour SA 24,625 1,163
Casino Guichard-Perrachon 2,238 132
CNP Assurances 2,917 253
Compagnie de Saint-Gobain 10,839 710
Compagnie Generale des Etablissements Michelin 3,038 181
CONTINUED
60
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
FRANCE, CONTINUED
Credit Agricole SA 16,973 $ 599
Dassault Systems SA 2,314 139
Essilor International SA 2,213 193
Euronext NV 2,317 143
European Aeronautic Defence and Space Co. 8,411 330
France Telecom SA 46,492 1,057
Gecina SA 1,903 224
Groupe Danone 10,041 1,094
Hermes International 354 91
Imerys SA 1,191 98
Klepierre 1,607 159
L'Air Liquide SA 3,591 738
L'Oreal SA 8,747 710
Lafarge SA 5,590 588
Lagardere Group SCA 3,721 297
LVMH Moet-Hennessy Louis Vuitton 6,483 585
Neopost SA 1,658 167
Peugeot SA 3,461 206
PPR SA 1,689 197
Publicis Groupe 2,839 107
Renault SA 3,561 336
Safran SA 3,684 97
Sanofi-Aventis 39,554 3,626
Schneider Electric SA 7,778 813
Societe BIC SA 1,476 95
Societe Generale-A 15,897 2,100
Societe Television Francaise 1 3,496 111
Sodexho SA 5,019 227
STMicroelectronics NV 8,706 161
Suez SA 16,628 615
Technip-Coflexip SA 1,654 112
Thales SA 3,488 169
Thomson 6,464 133
Total SA 20,289 5,602
Unibail Union Credit 2,597 383
Veolia Environnement 3,368 170
Vinci SA 4,968 462
Vivendi Universal 23,213 727
Zodiac SA 1,683 108
----------
36,389
----------
GERMANY (6.9%)
Adidas-Salomon AG 1,532 322
Allianz AG 22,113 3,558
Altana AG 3,346 186
BASF AG 17,733 1,395
Bayer AG 21,513 897
Bayerische Hypo- und Vereinsbank AG * (g) 19,795 642
Beiersdorf AG 3,151 403
Celesio AG 3,785 352
Commerzbank AG 26,517 901
Continental AG 2,978 290
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
GERMANY, CONTINUED
DaimlerChrysler AG 20,278 $ 1,165
Deutsche Bank AG 31,378 3,367
Deutsche Boerse AG 7,805 989
Deutsche Lufthansa AG 9,721 154
Deutsche Post AG 32,534 917
Deutsche Telekom AG 101,778 1,613
Douglas Holdings AG 937 42
E.ON AG 32,323 3,616
Epcos AG * 2,206 34
Fresenius Medical Care AG 3,816 406
Henkel KGaA 3,549 397
Hypo Real Estate Holding AG 8,564 560
Infineon Technologies AG * 13,189 125
Karstadt AG * 516 11
Linde AG 3,010 245
MAN AG 5,558 319
Merck KGAA 2,696 282
Metro AG 6,672 339
Muenchener Rueckver AG 5,356 728
Porsche AG 187 146
ProSiebenSat. 1 Media AG 1,993 46
Puma AG Rudolf Dassler Sport 530 168
RWE AG 14,564 1,202
SAP AG 8,566 1,754
Schering AG 7,328 501
Siemens AG (g) 34,161 3,120
Thyssen Krupp AG (g) 12,156 310
TUI AG 8,210 175
Volkswagen AG 5,294 314
Wincor Nixdorf AG * 900 105
----------
32,096
----------
GREAT BRITAIN (17.6%)
Aegis Group PLC 34,975 79
AMEC PLC 10,675 72
Anglo American PLC 46,137 1,773
ARM Holdings PLC 37,424 88
Arriva PLC 10,995 115
Associated British Ports Holdings PLC 17,945 188
AstraZeneca PLC 65,003 3,147
Aviva PLC 102,672 1,316
BAA PLC 48,970 544
BAE Systems PLC 114,441 849
Balfour Beatty 19,327 126
Barclays PLC 188,212 2,012
Barratt Developments PLC 6,653 118
BBA Group PLC 27,548 155
Bellway PLC 3,499 71
Berkeley Group Holdings PLC * 3,666 72
BG Group PLC 117,075 1,322
BHP Billiton PLC 80,966 1,496
BOC Group PLC 16,635 439
Boots Group PLC 25,376 287
BP PLC 706,159 8,490
CONTINUED
61
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
British Airways PLC * 22,875 $ 133
British American Tobacco PLC 49,480 1,115
British Land Co. PLC 11,916 244
British Sky Broadcasting Group PLC 28,331 245
BT Group PLC 261,832 957
Bunzl PLC 14,440 162
Burberry Group PLC 7,387 57
Cable & Wireless PLC 83,867 153
Cadbury Schweppes PLC 83,589 821
Carnival PLC 9,335 518
Centrica PLC 63,309 300
Cobham PLC 42,838 141
Compass Group PLC 112,548 444
Corus Group PLC 147,543 183
Daily Mail & General Trust 8,477 116
Diageo PLC 154,707 2,302
Dixons Group PLC 51,800 162
Electrocomponents PLC 18,604 99
EMAP PLC 7,086 107
EMI Group PLC 22,340 101
Enterprise Inns PLC 18,788 309
FirstGroup PLC 23,530 169
FKI PLC 19,992 46
Friends Provident PLC 78,256 280
George Wimpey PLC 10,884 100
GKN PLC 19,649 104
Glaxosmithkline PLC 219,871 5,623
GUS PLC 20,830 383
Hammerson PLC 6,553 122
Hanson PLC 23,931 276
HBOS PLC 106,936 1,880
Hilton Group PLC 86,762 562
HSBC Holdings PLC 305,756 5,080
IMI PLC 18,334 168
Imperial Chemical Industries PLC 39,502 256
Imperial Tobacco Group PLC 20,578 612
InterContinental Hotels Group PLC 25,231 389
International Power PLC 2,065 10
Invensys PLC * 222,235 85
ITV PLC 97,501 188
J Sainsbury PLC 44,940 241
Johnson Matthey PLC 7,313 190
Kelda Group PLC 11,901 166
Kesa Electricals PLC 8,163 36
Kingfisher PLC 31,317 132
Land Securities Group PLC 10,620 318
Legal & General Group PLC 257,931 575
Liberty International PLC 5,771 108
Lloyds TSB Group PLC 148,215 1,343
Logica PLC 31,222 101
Marks & Spencer PLC 42,231 365
Meggitt PLC 19,751 127
Misys PLC 23,956 104
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
Mitchells & Butlers PLC 27,489 $ 199
National Express Group PLC 8,899 138
National Grid PLC 84,582 866
Next PLC 6,598 203
Pearson PLC 20,364 264
Peninsular & Oriental Steam Navigation Co. PLC 38,107 370
Persimmon PLC 7,497 168
Pilkington PLC 40,431 112
Prudential Corp. PLC 70,167 711
Punch Taverns PLC 13,133 202
Rank Group PLC 30,376 145
Reckitt Benckiser PLC 23,680 778
Reed Elsevier PLC 32,223 304
Reuters Holding PLC 37,796 295
Rexam PLC 18,576 169
Rio Tinto PLC 35,078 1,789
Rolls-Royce Group PLC 53,901 416
Royal & Sun Alliance Insurance Group PLC 104,989 234
Royal Bank of Scotland Group PLC 79,608 2,464
Royal Dutch Shell PLC 154,149 5,245
Royal Dutch Shell PLC, B Shares 113,119 4,056
Sage Group PLC 50,647 240
Scot Power PLC 54,703 558
Scottish & Southern Energy PLC 25,737 489
Severn Trent PLC 12,279 250
Signet Group PLC 41,542 75
Slough Estates PLC 9,273 98
Smith & Nephew PLC 12,333 122
Smiths Industries PLC 18,789 332
Stagecoach Group PLC 47,328 94
Tate & Lyle PLC 28,676 294
Taylor Woodrow PLC 16,288 113
Tesco PLC 258,299 1,461
Tompkins PLC 34,975 191
Unilever PLC 137,697 1,448
United Business Media PLC 7,678 89
United Utilities PLC 697 8
Vodaphone Group PLC 1,911,928 4,013
Whitbread PLC 13,703 259
William Hill PLC 21,682 220
Wolseley PLC 20,336 490
WPP Group PLC * 24,954 277
Yell Group PLC 17,214 163
----------
81,979
----------
GREECE (0.3%)
Alpha Bank A.E. 10,080 346
EFG Eurobank Ergasias 6,029 224
National Bank of Greece SA 12,654 578
OPAP SA 7,500 282
Titan Cement Co. 1,900 84
----------
1,514
----------
CONTINUED
62
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
HONG KONG (1.5%)
ASM Pacific Technology, Ltd. 2,000 $ 11
Bank of East Asia, Ltd. 65,981 205
BOC Hong Kong Holdings, Ltd. 167,500 336
Cathay Pacific Airways, Ltd. 45,000 82
Cheung Kong Infrastructure Holdings, Ltd. 70,000 751
CLP Holdings, Ltd. 84,680 483
Hang Lung Properties, Ltd. 85,000 165
Hang Seng Bank, Ltd. 35,500 474
Henderson Land Development, Ltd. 34,000 173
Hong Kong & China Gas Co., Ltd. 183,348 402
Hong Kong Electric Holdings, Ltd. 65,000 313
Hong Kong Exchanges & Clearing, Ltd. 47,000 229
Hopewell Holdings, Ltd. 28,000 70
Hutchison Telecommunications 61,000 103
International, Ltd. *
Hutchison Whampoa, Ltd. 96,000 982
Hysan Development Co., Ltd. 28,628 73
MTR Corp. 63,490 133
New World Development Co., Ltd. 104,839 153
PCCW, Ltd. 165,047 111
Sino Land Company, Ltd. 36,235 51
Sun Hung Kai Properties, Ltd. 61,136 633
Swire Pacific, Ltd. 43,500 405
Techtronic Industries Co., Ltd. 42,500 82
Television Broadcasts, Ltd. 13,000 71
The Link REIT * 76,000 147
Wharf Holdings, Ltd. 55,600 214
----------
6,852
----------
INDONESIA (0.0%)
PT Mulia Industrindo Tbk * 19,000 --#
----------
IRELAND (0.4%)
Allied Irish Banks PLC 735 17
Allied Irish Banks PLC 26,267 590
Bank of Ireland 30,620 528
CRH PLC 15,728 487
CRH PLC 2,383 74
DCC PLC 998 23
Elan Corp. PLC * 13,458 205
Grafton Group PLC * 4,587 54
Independent News & Media PLC 4,663 15
Irish Life & Permanent PLC 2,120 45
Kerry Group PLC 1,368 30
----------
2,068
----------
ITALY (1.0%)
Alleanza Assicurazioni SpA 3,281 41
Assicurazioni Generali 5,179 179
Autogrill SpA 2,905 43
Autostrade SpA 6,061 153
Banca Fideuram SpA 2,625 16
Banca Intesa SpA 48,564 276
Banca Intesa SpA-RNC 4,499 24
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
ITALY, CONTINUED
Banca Monte dei Paschi di Seina SpA 4,609 $ 22
Banca Nazionale del Lavoro SpA * 6,510 23
Banca Popolare di Milano 1,799 22
Banche Popolari Unite Scrl 391 9
Banco Popolare di Verona e Novara Scrl 4,863 112
Benetton Group SpA 1,752 21
Capitalia SpA 1,956 13
Enel SpA 14,760 125
ENI SpA 67,145 2,029
Fiat SpA * 5,020 49
Finmeccanica SpA * 5,677 124
Italcementi SpA 1,256 24
Luxottica Group SpA 2,162 56
Mediaset SpA 5,367 63
Mediobanca SpA 2,967 57
Mediolanum SpA 1,973 15
Pirelli SpA 44,863 44
Riunione Adriatica di Sicurta SpA 1,735 45
San Paolo IMI SpA 20,004 325
Seat Pagine Gialle SpA * 25,519 13
Snam Rete Gas SpA 2,478 11
Telecom Italia SpA 99,077 278
Telecom Italia SpA, RNC 56,783 134
Tiscali SpA * 1,198 4
UniCredito Italiano SA 60,661 433
----------
4,783
----------
JAPAN (29.2%)
Acom Co., Ltd. 4,720 270
Advantest 5,200 638
AEON Co., Ltd. 27,000 711
AEON Credit Service Co., Ltd. 1,300 116
Aiful Corp. 4,150 280
Ajinomoto Co., Inc. 31,400 326
Alps Electric Co., Ltd. 9,000 127
Amada Co., Ltd. 16,000 145
Asahi Breweries, Ltd. 20,900 262
Asahi Glass Co., Ltd. (g) 62,800 908
Asahi Kasei Corp. 62,000 422
Asatsu, Ltd. 1,200 38
Astellas Pharma, Inc. 22,600 935
Bank of Kyoto, Ltd. 12,000 143
Bank of Yokohama, Ltd. 75,000 607
Benesse Corp. 2,700 97
Bridgestone Corp. 47,000 956
Canon, Inc. 38,800 2,343
Casio Computer Co., Ltd. 17,000 299
Central Japan Railway Co. 69 706
Chiba Bank, Ltd. 48,000 434
Chiyoda Corp. 10,000 257
Chubu Electric Power Co., Inc. (g) 24,300 594
Chugai Pharmaceutical Co., Ltd. 11,304 229
Citizen Watch Co., Ltd. 19,300 171
COMSYS Holdings Corp. 9,000 135
CONTINUED
63
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Credit Saison Co., Ltd. 8,900 $ 399
CSK Corp. 4,700 214
Dai Nippon Printing Co., Ltd. 22,600 408
Daicel Chemical Industries, Ltd. 9,000 73
Daiichi Sanko Co., Ltd. * 32,300 669
Daikin Kogyo Corp. 9,100 299
Dainippon Ink & Chemicals, Inc. 32,000 139
Daito Trust Construction Co., Ltd. 7,500 352
Daiwa House Co., Ltd. 38,600 648
Daiwa Securities Group, Ltd. 171,000 2,008
Denki Kagaku Kogyo Kabushiki Kaisha, Ltd. 20,000 91
Denso Corp. 34,350 1,210
Dentsu, Inc. 24 81
Dowa Mining Co., Ltd. 28,000 328
East Japan Railway Co. 198 1,376
Ebara Corp. 16,800 97
Eisai Co., Ltd. 12,802 547
FamilyMart Co., Ltd. 2,900 97
Fanuc Co., Ltd. 9,600 845
Fast Retailing Co., Ltd. 3,800 344
Fuji Electric Holdings Co., Ltd. 11,000 60
Fuji Photo Film Co., Ltd. 22,600 775
Fuji Soft ABC, Inc. 2,200 74
Fuji Television Network 29 72
Fujikura 14,000 138
Fujitsu, Ltd. 85,000 749
Furukawa Electric Co., Ltd. * 30,800 276
Hankyu Department Stores, Inc. 4,000 39
Hirose Electric Co., Ltd. 2,800 425
Hitachi Chemical Co., Ltd. 1,000 31
Hitachi Construction Machinery Co., Ltd. 1,200 33
Hitachi, Ltd. 166,000 1,170
Hokkaido Electric Power Co., Inc. 6,900 154
Hokuhoku Financial Group, Inc. 79,000 374
Honda Motor Co., Ltd. 48,051 2,729
Hoya Corp. 24,700 990
IBIDEN Co., Ltd. 5,500 309
Index Corp. 61 126
Inpex Corp. 13 133
Isetan Co., Ltd. 10,500 230
Ishikawajima-Harima Heavy Industries
Co., Ltd. * 56,000 183
Itochu Corp. 71,000 603
Itochu Techno-Science Corp. 2,400 103
Japan Airlines System Corp. 43,000 120
Japan Real Estate Investment Corp. 24 205
Japan Retail Fund Investment Corp. 21 176
Japan Tobacco, Inc. 35 543
JFE Holdings, Inc. 18,300 657
JGC Corp. 14,000 297
Joyo Bank, Ltd. 54,000 360
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
JS Group Corp. 12,800 $ 269
JSR Corp. 8,200 244
Kajima Corp. 67,400 443
Kaneka Corp. 12,000 158
Kansai Electric Power Co., Inc. 33,800 759
Kao Corp. 28,000 807
Kawasaki Heavy Industries, Ltd. (g) 57,000 215
Kawasaki Kisen Kaisha, Ltd. 4,000 26
Keihin Electric Express Railway Co., Ltd. 13,000 100
Keio Electric Railway Co., Ltd. 9,000 55
Keyence Corp. 2,800 770
Kikkoman Corp. 6,000 60
Kinki Nippon Railway Co., Ltd. 79,230 324
Kirin Brewery Co., Ltd. 43,400 542
Kobe Steel, Ltd. 90,000 308
Kokuyo Co., Ltd. 2,900 43
Komatsu, Ltd. 55,400 1,023
Komori Corp. 1,000 22
Konami Co., Ltd. 6,500 147
Konica Corp. 27,500 308
Kubota Corp. 76,000 724
Kuraray Co., Ltd. 19,500 230
Kurita Water Industries, Ltd. 3,500 82
Kyocera Corp. 8,300 739
Kyushu Electric Power Co., Inc. 15,200 346
Lawson, Inc. 2,600 103
Leopalace 21 Corp. 9,900 360
Mabuchi Motor Co., Ltd. 1,800 97
Marubeni Corp. 69,800 373
Marui Co., Ltd. 26,900 494
Matsushita Electric Industrial Co., Ltd. 98,000 2,131
Matsushita Electric Works 16,000 180
Meiji Seika Co., Ltd. 7,000 36
Meitec Corp. 1,300 45
Millea Holdings, Inc. 73 1,400
Minebea Co., Ltd. 19,000 114
Mitsubishi Chemical Holdigs Corp. 43,500 278
Mitsubishi Corp. 62,300 1,455
Mitsubishi Electric Corp. 107,800 878
Mitsubishi Estate Co., Ltd. 101,000 2,348
Mitsubishi Heavy Industries, Ltd. 182,000 824
Mitsubishi Logistics Corp. 3,000 51
Mitsubishi Materials Corp. 91,000 471
Mitsubishi Rayon Co., Ltd. 27,000 183
Mitsubishi Tokyo Financial Group, Inc. 372 5,361
Mitsui & Co., Ltd. 76,800 1,105
Mitsui Chemicals, Inc. 24,000 181
Mitsui Fudosan Co., Ltd. 71,400 1,504
Mitsui Mining & Smelting Co., Ltd. 56,000 443
Mitsui O.S.K. Lines, Ltd. 10,000 91
Mitsui Sumitomo Insurance Co. 60,230 739
Mitsui Trust Holding, Inc. 36,513 539
CONTINUED
64
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Mitsukoshi, Ltd. (g) 28,000 $ 175
Mizuho Financial Group, Inc. 361 2,956
Murata Manufacturing Co., Ltd. 11,200 812
NEC Corp. 110,200 714
NEC Electronics Corp. 2,600 86
Net One Systems Co., Ltd. 38 89
New Oji Paper Co. (g) 52,400 306
NGK Insulators, Ltd. 20,600 326
NGK Spark Plug Co., Ltd. 12,000 300
Nidec Corp. 5,300 486
Nikko Cordial Corp. 30,000 477
Nikon Corp. 15,000 257
Nintendo Co., Ltd. 7,100 974
Nippon Building Fund, Inc. 28 248
Nippon Electric Glass Co., Ltd. 10,000 263
Nippon Express Co., Ltd. 40,600 247
Nippon Meat Packers, Inc. 9,600 100
Nippon Mining Holdings, Inc. 25,500 209
Nippon Oil Co., Ltd. 76,600 608
Nippon Paper Group, Inc. 44 173
Nippon Sheet Glass Co., Ltd. 21,000 93
Nippon Steel Corp. 230,800 854
Nippon Telegraph and Telephone Corp. 322 1,493
Nippon Yusen Kabushiki Kaisha 60,000 444
Nishi-Nippon City Bank, Ltd. 42,000 249
Nissan Chemical Industries, Ltd. 7,000 113
Nissan Motors Co., Ltd. 143,400 1,614
Nisshin Seifun Group, Inc. 6,400 68
Nisshin Steel Co., Ltd. 9,000 31
Nisshinbo Industries, Inc. 3,000 33
Nissin Food Products Co., Ltd. 4,100 117
Nitto Denko Corp. 9,900 838
Nomura Holdings, Inc. 103,200 2,015
Nomura Research Institute, Ltd. 1,600 186
NSK, Ltd. 37,000 274
NTN Corp. 27,000 215
NTT Data Corp. 90 447
NTT DoCoMo, Inc. 455 737
Obayashi Corp. 44,000 354
OBIC Co., Inc. 600 140
Oki Electric Industry Co., Ltd. 33,000 116
Okumura Corp. 12,000 72
Olympus Optical Co., Ltd. 8,000 211
Omron Corp. 11,000 259
Onward Kashiyama Co., Ltd. 4,000 75
Oracle Corp. Japan 2,400 121
Oriental Land Co., Ltd. 2,700 159
Orix Corp. 6,900 1,785
Osaka Gas Co., Ltd. 91,200 328
Pioneer Electronic Corp. 8,601 121
Promise Co., Ltd. 5,750 333
Resona Holdings, Inc. * 223 876
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Ricoh Co., Ltd. 32,000 $ 550
Rohm Co., Ltd. 7,400 800
Sampo Japan Insurance, Inc. 41,000 583
Sanken Electric Co., Ltd. 7,000 122
Sanyo Electric Co., Ltd. (g) 81,000 204
Secom Co., Ltd. 9,100 471
Seiko Epson Corp. 5,500 136
Sekisui Chemical Co., Ltd. 20,000 155
Sekisui House, Ltd. (g) 48,600 757
Seven & I Holdings Co., Ltd. * 36,180 1,530
Sharp Corp. 41,200 753
Shimachu Co., Ltd. 2,500 76
Shimamura Co., Ltd. 1,300 165
Shimano, Inc. 4,600 132
Shimizu Construction (g) 47,600 376
Shin-Etsu Chemical Co. 18,948 1,078
Shinsei Bank, Ltd. 68,000 453
Shionogi & Co., Ltd. 16,000 242
Shisiedo Co., Ltd. 17,800 341
Shizuoka Bank, Ltd. 40,000 409
Showa Denko KK 32,000 141
Showa Shell Sekiyu KK 10,000 117
Skylark Co., Ltd. 7,000 111
SMC Corp. 3,400 521
Softbank Corp. (g) 52,800 1,778
Sony Corp. 35,398 1,720
Stanley Electric Co., Ltd. 5,600 117
Sumitomo Bakelite Co. 6,000 54
Sumitomo Chemical Co., Ltd. 65,600 506
Sumitomo Corp. 46,200 632
Sumitomo Electric Industries 34,400 570
Sumitomo Heavy Industries, Ltd. 23,000 205
Sumitomo Metal Industry, Ltd. 136,000 552
Sumitomo Metal Mining Co., Ltd. 52,600 707
Sumitomo Mitsui Financial Group, Inc. 221 2,582
Sumitomo Osaka Cement Co., Ltd. 12,000 38
Sumitomo Realty & Development Co., Ltd. 44,000 998
Sumitomo Trust & Banking 76,000 837
T&D Holdings, Inc. 11,450 817
Taiheiyo Cement Corp. 29,000 117
Taisei Construction 63,000 321
Taisho Pharmaceutical Co. 3,913 76
Taiyo Yuden Co., Ltd. 5,000 82
Taka Shi Maya Co., Ltd. 18,000 282
Takara Holdings, Inc. 7,000 42
Takeda Pharmaceutical Co., Ltd. 42,300 2,396
Takefuji Corp. 4,130 249
Takuma Co., Ltd. 5,000 43
TDK Corp. 6,100 442
Teijin, Ltd. 42,400 289
Teikoku Oil Co., Ltd. 6,000 87
Terumo Corp. 9,500 271
CONTINUED
65
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
The 77 Bank, Ltd. 14,000 $ 106
The Bank of Fukuoka, Ltd. 27,000 232
The Daimaru, Inc. 17,000 264
THK Co., Ltd. 2,300 73
TIS, Inc. 2,951 95
Tobu Railway Co., Ltd. 32,600 165
Toho Co. 2,200 45
Tohoku Electric Power Co., Ltd. 18,900 407
Tokyo Broadcasting System, Inc. 6,600 176
Tokyo Electric Power Co., Inc. 51,700 1,300
Tokyo Electronics, Ltd. 11,200 858
Tokyo Gas Co., Ltd. 109,600 509
Tokyo Tatemono Co., Ltd. 16,000 153
Tokyu Corp. 47,400 331
Tonengeneral Sekiyu K.K. 17,000 174
Toppan Printing Co., Ltd. 23,600 319
Toray Co. 61,100 511
Toshiba Corp. 166,000 1,063
Tosoh Corp. 27,000 137
Toto, Ltd. 25,600 229
Toyo Seikan Kaisha, Ltd. 9,000 160
Toyota Industries Corp. 5,300 192
Toyota Motor Corp. 154,700 8,020
Trend Micro, Inc. 6,700 223
Uni-Charm Corp. 2,000 94
Uniden Corp. 4,000 88
UNY Co., Ltd. 6,000 94
Ushio, Inc. 3,000 77
USS Co., Ltd. 2,940 187
Wacoal Corp. 3,000 42
West Japan Railway Co. 22 91
Yahoo Japan Corp. 542 735
Yakult Honsha Co., Ltd. 5,000 109
Yamada Denki Co., Ltd. 6,100 786
Yamaha Corp. 6,300 110
Yamaha Motor Co., Ltd. 1,000 26
Yamato Transport Co., Ltd. 17,000 294
Yamazaki Baking Co., Ltd. 5,000 39
Yokogawa Electric Corp. 12,000 228
----------
135,388
----------
MEXICO (0.9%)
Alfa, SA 13,000 74
America Movil SA de CV (g) 746,000 1,264
Cemex SA de CV (g) 122,000 804
Coca-Cola Femsa SA de CV * 6,000 18
Corporacion GEO SA de CV * 15,000 52
Fomento Economico Mexicano SA de CV 26,000 204
Grupo Carso SA de CV 30,000 82
Grupo Financiero Banorte SA de CV 51,000 122
Grupo Mexico SA de CV 45,000 126
Grupo Modelo SA de CV 21,000 78
Grupo Televisa SA (g) 88,000 368
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
MEXICO, CONTINUED
Kimberly Clark de Mexico SA de CV 21,000 $ 76
Telefonos de Mexico SA de CV (g) 503,000 598
Urbi, Desarrollos Urbanos, SA de CV * 4,000 29
Wal-Mart de Mexico SA de CV (g) 77,000 449
----------
4,344
----------
NETHERLANDS (2.9%)
ABN AMRO Holding NV 81,360 2,259
Aegon NV 84,631 1,368
Akzo NV 9,089 440
ASML Holding NV * 20,394 460
Corio NV 3,575 210
Elsevier NV 17,002 239
Heineken NV 9,339 328
ING Groep NV 78,752 2,810
Koninklijke DSM NV 4,996 224
Koninklijke KNP NV 65,300 631
Oce NV 4,385 77
Philips Electronics NV 36,887 1,245
Rodamco Cont Eurpope NV 2,933 253
TNT Post Groep NV 17,981 590
Unilever NV 22,921 1,608
Vedior NV 5,687 92
VNU NV 6,408 215
Wereldhave 1,458 150
Wolters Kluwer NV CVA 8,971 199
----------
13,398
----------
NEW ZEALAND (0.0%)
Auckland International Airport, Ltd. 7,148 10
Carter Holt Harvey, Ltd. 5,862 10
Contact Energy, Ltd. 2,639 12
Fisher & Paykel Appliances Holdings, Ltd. 1,810 4
Fisher & Paykel Industries, Ltd. 2,095 5
Fletcher Building, Ltd. 2,432 13
Sky City Entertainment Group, Ltd. 2,451 8
Telecom Corp. of New Zealand, Ltd. 12,253 48
The Warehouse Group, Ltd. 1,226 3
----------
113
----------
NORWAY (0.5%)
DnB Holding ASA 13,396 150
Norsk Hydro ASA 4,842 595
Orkla SA 8,000 319
Schibsted ASA 1,250 37
Statoil ASA 22,650 622
Storebrand ASA 1,300 13
Tandberg ASA 5,800 36
Tandberg Television ASA * 3,000 43
Telenor ASA 23,000 231
Tomra Systems ASA 2,135 17
Yara International ASA 6,942 103
----------
2,166
----------
CONTINUED
66
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
PORTUGAL (0.2%)
Banco Commercial 88,339 $ 258
BPI-SGPS SA 2,389 12
Brisa Auto-Estradas (g) 20,326 178
Energias de Portugal SA 12,673 42
Portugal Telecom SA 24,085 242
PT Multimedia-Servicos de 1,374 16
Telecomunicacoes e Multimedia, SGPS, SA *
Sonae, SGPS SA 25,407 36
----------
784
----------
RUSSIA (1.1%)
AO VimpelCom ADR * 9,500 445
GMK Norilsk Nickel ADR 4,700 422
Lukoil ADR 31,200 2,392
Mobile TeleSystems, ADR 8,000 300
Oao Gazprom ADR (g) 3,816 332
Polyus Gold ADR * 4,700 160
RAO Unified Energy Systems, GDR * 5,127 252
Surgutneftegaz ADR (g) 8,600 589
Tatneft ADR 3,900 335
----------
5,227
----------
SINGAPORE (1.5%)
Ascendas Real Estate Investment Trust 65,000 87
Capitaland, Ltd. 86,000 210
CapitaMall Trust 55,300 82
Chartered Semiconductor Manufacturing, Ltd. * 86,000 74
City Developments, Ltd. 48,370 255
ComfortDelGro Corp., Ltd. 147,333 154
Creative Technology, Ltd. 4,705 39
DBS Group Holdings, Ltd. 90,945 921
Fraser & Neave, Ltd. 15,000 174
Jardine Cycle & Carriage, Ltd. 10,031 71
Keppel Corp., Ltd. 45,000 363
Keppel Land, Ltd. 32,000 75
MCL Land, Ltd. * 7,236 8
Neptune Orient Lines, Ltd. 41,000 63
Oversea-Chinese Banking Corp., Ltd. 173,490 727
Overseas Union Enterprises 3,735 25
Parkway Holdings, Ltd. 54,000 78
SembCorp Industries, Ltd. 70,784 129
SembCorp. Marine, Ltd. 48,000 88
Singapore Airlines, Ltd. 42,000 368
Singapore Exchange, Ltd. 66,911 130
Singapore Land, Ltd. 13,000 48
Singapore Post, Ltd. 114,000 82
Singapore Press Holdings, Ltd. 128,743 341
Singapore Technology Engineering, Ltd. 108,760 201
Singapore Telecommunications, Ltd. 553,503 867
STATS ChipPAC, Ltd. * 85,000 60
United Overseas Bank, Ltd. 96,720 865
United Overseas Land, Ltd. 44,376 76
Venture Corp., Ltd. 18,445 152
----------
6,813
----------
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
SPAIN (2.2%)
Abertis Infraestructuras (g) 9,725 $ 259
Acciona SA 985 123
Acerinox, SA 5,172 83
Actividades de Construccion y Servicios, SA 7,305 254
Altadis SA 13,279 552
Antena 3 Television SA 1,582 43
Banco Bilbao Vizcaya-Argentari 96,830 1,955
Banco Popular Espanol SA 27,152 340
Banco Santander Central Hispano SA (g) 135,568 1,950
Cintra Concesiones de Infraestructuras
de Transporte SA 9,010 117
Endesa SA (g) 14,882 429
Fomento de Construcciones y Contratas SA 1,144 74
Gas Natural SDG SA 20,584 595
Grupo Ferrovial SA 1,629 127
Iberdrola SA 12,701 362
Indra Sistemas SA 2,570 50
Industria de Diseno Textil SA 5,735 197
Repsol SA 23,118 627
Sociedad General De Aguas De Barcelona SA 2,515 62
Telefonica SA 132,830 2,026
Union Electric Penosa SA 2,676 101
Vallehermoso SA 2,563 65
----------
10,391
----------
SWEDEN (2.1%)
Alfa Laval AB 900 19
Assa Abloy AB, Series B 12,150 196
Atlas Copco AB, A Shares * 12,092 284
Atlas Copco AB, B Shares * 7,200 153
Billerud 4,050 55
Electrolux AB, Series B 7,900 211
Eniro AB 4,900 64
Ericsson LM, Series B 593,737 2,144
Gambro AB, Class A 1,100 13
Getinge AB, B Shares 6,400 100
Hennes & Mauritz AB, Series B 12,550 462
Holmen AB 2,100 78
Modern Times Group MTG AB * 1,550 76
Nordea Bank AB 130,222 1,403
Sandvik AB 7,688 379
Scania AB, Series B 4,000 158
Securitas AB, Series B 15,700 286
Shanska AB, Series B 13,117 204
Skandia Forsakrings AB 20,831 144
Skandiaviska Enskil 22,520 503
SKF AB, Series B * 12,200 171
Svenska Cellulosa AB, Series B 6,600 275
Svenska Handelsbanken, Series A 36,502 900
Svenskt Stal AB, Series A 1,600 69
Swedish Match AB 19,700 248
CONTINUED
67
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
SWEDEN, CONTINUED
Tele2 AB * 5,425 $ 58
Telia 53,426 304
Volvo AB, Series A 3,633 172
Volvo AB, Series B (g) 8,410 412
WM-Data AB 9,600 33
----------
9,574
----------
SWITZERLAND (5.3%)
Abb, Ltd. * 67,709 736
Adecco SA, Registered 1,689 94
Ciba Specialty Chemicals AG 2,170 138
Clariant AG * 7,079 107
Compagnie Finaciere Richemont AG 13,296 605
Credit Suisse Group 27,666 1,616
Geberit AG 170 155
Givaudan 218 155
Holcim, Ltd. 5,987 453
Kudelski SA 1,850 59
Logitech International SA * 3,980 169
Lonza Group AG 1,166 73
Nestle 15,523 4,555
Nobel Biocare Holding AG 963 219
Novartis AG, Registered 90,084 4,948
Roche Holdings AG, Genusscheine 26,846 4,243
Schindler Holding AG 245 106
Serono SA 334 253
Societe Generale de Surveillance Holdings SA 132 124
Straumann AG 510 123
Swiss Reinsurance 2,788 207
Swisscom AG 664 204
Syngenta 3,377 429
The Swatch Group AG, Series B 1,016 165
UBS AG 39,071 4,249
Zurich Financial Services 2,010 440
----------
24,625
----------
THAILAND (0.5%)
Advanced Information Service PCL 59,600 158
Airports of Thailand PCL 34,200 45
Bangkok Bank PCL Foreign Registered Shares 66,200 211
Bangkok Bank PCL. 23,800 70
Banpu PLC * 10,400 37
Hana Microelectronics PCL * 44,600 32
Italian-Thai Development PCL 79,400 18
Kasikornbank PCL 36,000 62
Kasikornbank PCL, Foreign Registered Shares 92,800 172
Krung Thai Bank PCL * 223,200 69
Land and Houses PCL 118,600 29
Land and Houses PCL., Foreign 153,565 39
Registered Shares National Finance PCL * 53,000 21
PTT Chemical PCL * 21,700 49
CONTINUED
SHARES VALUE
------------ ----------
FOREIGN STOCKS, CONTINUED
THAILAND, CONTINUED
PTT Exploration and Production PCL. 19,900 $ 292
PTT PCL 60,900 410
Ratchaburi Electricity Generating
Holding PCL * 26,500 28
Shin Corp. PCL * 112,600 140
Siam Cement PCL 10,500 66
Siam Cement PCL, Foreign Registered Shares 24,000 166
Siam City Cement PCL * 2,600 25
Siam Commerical Bank PCL * 63,500 97
Thai Airways International PCL * 40,700 42
TISCO Finance PCL * 26,500 19
True Corp. PCL * 132,900 39
----------
2,336
----------
TURKEY (1.0%)
Akbank TAS 81,485 710
Anadolu Efes Biracilik ve Malt Sanayii AS * 2,297 79
Arcelik AS * 19,534 184
Dogan Sirketler Grubu Holding AS * 42,270 168
Dogan Yayin Holding AS * 26,147 123
Eregli Demir ve Celik Fabrikalari TAS * 45,737 319
Ford Otomotiv Sanayi AS 11,885 110
Haci Omer Sabanci Holding AS 47,629 368
Hurriyet Gazetecilik ve Matbaacilik AS 14,856 62
Koc Holding AS 34,073 189
Migros Turk AS 13,711 152
Trakya Cam Sanayii AS 4,934 20
Tupras-Turkiye Petrol Rafinerileri AS 14,064 293
Turk Hava Yollari Anonim Ortakligi * 5,160 32
Turk Sise ve Cam Fabrikalari AS 14,713 57
Turkcell Iletisim Hizmetleri AS 47,541 326
Turkiye Garanti Bankasi AS * 123,855 573
Turkiye Is Bankasi 86,742 789
Yapi ve Kredi Bankasi AS * 41,531 231
----------
4,785
----------
TOTAL FOREIGN STOCKS 421,779
----------
PREFERRED STOCKS (0.8%)
BRAZIL (0.7%)
Banco Bradesco SA 13,000 512
Brasil Telecom Participacoes SA 8,395,000 59
Caemi Mineracao e Metalurgica SA 59,000 106
Companhia de Bebidas das Americas 594,000 244
Companhia Energetica de Minas Gerais 3,514,000 169
Empresa Brasileira de Aeronautica SA 12,500 129
Gerdau SA 8,000 174
Klabin SA 21,000 41
Petroleo Brasileiro SA 79,300 1,686
Sadia SA 18,000 60
Votorantim Celulose e Papel SA 3,000 37
----------
3,217
----------
CONTINUED
68
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
PREFERRED STOCKS, CONTINUED
GERMANY (0.0%)
Volkswagen AG 2,691 $ 116
----------
RUSSIA (0.1%)
Surgutneftegaz ADR 4,200 449
----------
TOTAL PREFERRED STOCKS 3,782
----------
TREASURY BILLS (0.3%)
UNITED STATES (0.3%)
3.94%, 2/16/06 ** $ 1,200 1,198
----------
TOTAL TREASURY BILLS 1,198
----------
INVESTMENT COMPANIES (3.7%)
UNITED STATES (3.7%)
Excelsior Pacific Asia Fund 33 --#
Invesco Gold and Precision Metals Fund * 59 --#
iShares MSCI Emerging Markets Index Fund (g) 15,900 1,602
iShares MSCI Germany Index Fund (g) 165,500 3,640
iShares MSCI Hong Kong Index Fund (g) 561,700 7,533
Matthews China Fund 55,918 917
Matthews Pacific Tiger Fund 80,040 1,635
Oakmark International Small Cap Fund 54,067 1,139
Scudder Latin America Fund 14,934 811
----------
TOTAL INVESTMENT COMPANIES 17,277
----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
MONEY MARKETS (3.7%)
UNITED STATES (3.7%)
JPMorgan Prime Money Market Fund 17,212,428 $ 17,212
----------
TOTAL MONEY MARKETS 17,212
----------
SHORT TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (5.2%)
Pool of various securities for Fifth
Third Funds $ 24,287 24,287
----------
TOTAL SHORT TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 24,287
----------
TOTAL INVESTMENTS (COST $420,575) + - 104.4% 485,777
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.4)% (20,650)
----------
NET ASSETS - 100.0% $ 465,127
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
69
HIGH YIELD BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS (98.6%)
AES Corp., 8.75%, 5/15/13 (e) $ 1,000 $ 1,087
Allied Waste North America, 7.25%, 3/15/15 750 758
Asbury Automotive Group, 8.00%, 3/15/14 750 736
Atlas Pipline Partners, 8.13%, 12/15/15 (e) 219 226
Beazer Homes USA, 6.88%, 7/15/15 750 731
Bluewater Finance Ltd., 10.25%, 2/15/12 700 754
Bombardier Recreational, 8.38%, 12/15/13 750 763
Bristow Group, Inc., 6.13%, 6/15/13 600 576
Buckeye Technologies, Inc., 8.50%, 10/1/13 750 754
Case New Holland, Inc., 9.25%, 8/1/11 750 803
Cenveo Corp., 9.63%, 3/15/12 750 804
Chaparral Steel Co., 10.00%, 7/15/13 750 825
Chesapeake Energy Corp., 6.88%, 1/15/16 750 765
Chesapeake Energy Corp., 6.50%, 8/15/17 (e) 149 148
CMS Energy Corp., 6.30%, 2/1/12 800 794
Consol Energy, Inc., 7.88%, 3/1/12 750 815
Copano Energy LLC, 8.13%, 3/1/16 (e) 171 174
CSC Holdings, Inc., 8.13%, 8/15/09 750 761
CSK Auto, Inc., 7.00%, 1/15/14 750 684
Del Monte Corp., 6.75%, 2/15/15 (e) 750 744
Dex Media, Inc., 0.00%, 11/15/13 (d) 215 177
Dex Media, Inc., 0.00%, 11/15/13 (d) 43 35
Dex Media, Inc., 8.00%, 11/15/13 184 189
Dow Jones CDX HY, 8.75%, 12/29/10 (e) 6,960 7,069
DRS Technologies, Inc., 6.63%, 2/1/16 256 258
Ford Motor Credit Co., 7.88%, 6/15/10 875 823
Forest Oil Corp., 8.00%, 12/15/11 750 821
Foundation PA Coal Co., 7.25%, 8/1/14 750 778
GCI, Inc., 7.25%, 2/15/14 750 739
General Motors Acceptance Corp., 6.88%, 9/15/11 750 716
General Motors Acceptance Corp., 8.00%, 11/1/31 750 765
Georgia - Pacific Corp., 7.70%, 6/15/15 750 733
Gibraltar Industries, Inc., 8.00%, 12/1/15 (e) 750 752
Houghton Mifflin Co., 8.25%, 2/1/11 750 780
IKON Office Solutions, 7.75%, 9/15/15 (e) 750 758
Jarden Corp., 9.75%, 5/1/12 750 750
K. Hovnanian Enterprises, 6.25%, 1/15/15 1,000 945
Massey Energy Co., 6.88%, 12/15/13 (e) 750 757
Mirant North America LLC, 7.38%, 12/31/13 (e) 750 763
Mylan Laboratories, Inc., 6.38%, 8/15/15 750 761
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Navistar International, 7.50%, 6/15/11 $ 850 $ 842
Nell AF SARL, 8.38%, 8/15/15 (e) 750 749
Novelis, Inc., 7.50%, 2/15/15 (e) 600 567
NRG Energy, Inc., 7.25%, 2/1/14 730 740
Owens-Brockway Glass Containers,
8.75%, 11/15/12 750 806
Pilgrim's Pride Corp., 9.63%, 9/15/11 150 159
Pilgrim's Pride Corp., 9.25%, 11/15/13 1,000 1,063
Polyone Corp., 8.88%, 5/1/12 750 731
Quebecor Media, 7.75%, 3/15/16 (e) 902 921
Qwest Corp., 7.88%, 9/1/11 750 793
Range Resources Corp., 7.38%, 7/15/13 585 613
Reliant Energy, Inc., 9.50%, 7/15/13 750 743
Roger Wireless, Inc., 7.25%, 12/15/12 750 793
Service Corp. International, 7.50%, 6/15/17 (e) 750 761
Station Casinos, 6.50%, 2/1/14 750 748
Stena AB, 7.50%, 11/1/13 750 731
Sungard Data Systems, Inc., 9.13%, 8/15/13 (e) 750 780
Susquehanna Media Co., 7.38%, 4/15/13 750 810
Texas Industries, Inc., 7.25%, 7/15/13 705 728
Transmontaigne, Inc., 9.13%, 6/1/10 750 764
Trinity Industries, Inc., 6.50%, 3/15/14 750 748
United Auto Group, Inc., 9.63%, 3/15/12 275 292
United Rentals NA, Inc., 6.50%, 2/15/12 750 739
----------
TOTAL CORPORATE BONDS 49,692
----------
INVESTMENTS IN AFFILIATES (2.1%)
Fifth Third Institutional Money Market Fund 1,074,757 1,075
----------
TOTAL INVESTMENTS IN AFFILIATES 1,075
----------
TOTAL INVESTMENTS (COST $50,502) + - 100.7% 50,767
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.7)% (349)
----------
NET ASSETS - 100.0% $ 50,418
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
70
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
COMMERCIAL PAPER (4.9%)
BMW US Capital LLC, 4.36%, 2/16/06 ** (f) $ 7,135 $ 7,121
Nestle Capital Corp., 4.34%, 2/13/06 ** (f) 4,790 4,783
Wells Fargo & Co., 4.41%, 2/21/06 ** 2,120 2,113
----------
TOTAL COMMERCIAL PAPER 14,017
----------
CORPORATE BONDS (66.3%)
AOL Time Warner, Inc., 7.70%, 5/1/32 480 538
Banc of America Commercial Mortgage,
Inc., Series 2005-6, Class AJ,
5.18%, 9/10/47 2,850 2,825
Bank of Montreal-Chicago, 7.80%, 4/1/07 2,750 2,834
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-10, Class 12A3,
4.68%, 1/25/35 (d) 1,491 1,468
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-12, Class 11A2,
5.48%, 2/25/36 (d) 4,811 4,821
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-12, Class 13A1,
5.48%, 2/25/36 (d) 3,932 3,912
Bear Stearns Commercial Mortgage
Securities, 4.75%, 2/13/46 (d) 7,500 7,224
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32 1,769 1,817
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2004-T14,
Class A4, 5.20%, 1/12/41 2,000 1,987
Columbus Southern Power, 4.40%, 12/1/10 500 481
Comcast Cable, 7.13%, 6/15/13 1,750 1,885
Countrywide Alternative Loan Trust,
6.50%, 9/25/34 (d) 742 753
Countrywide Asset-Backed Certificates,
Series 2002-BC1, Class M1,
5.33%, 4/25/32 (d) (f) 1,426 1,427
Cox Communications, Inc., 5.50%, 10/1/15 800 772
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2,
Class A2, 6.52%, 1/17/35 83 83
Credit-Based Asset Servicing and
Securitization, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36 3,350 3,350
DaimlerChrysler, 8.50%, 1/18/31 600 728
Devon Energy Corp., 7.95%, 4/15/32 700 891
Duke Energy Corp., 6.45%, 10/15/32 850 897
Equity One ABS, Inc., Series 2004-1,
Class AF4, 4.14%, 4/25/34 (d) 4,000 3,932
First Union-Lehman Brothers, 7.00%,
4/18/29 (e) 2,750 2,983
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Firstenergy Corp., 6.45%, 11/15/11 $ 1,070 $ 1,126
Fleet/Norstar Group, 8.63%, 1/15/07 2,000 2,064
Gazprom International, 7.20%, 2/1/20 (e) 1,000 1,064
General Electric Capital Corp.,
6.75%, 3/15/32 1,055 1,226
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
4.61%, 12/25/20 (d) (f) 1,258 1,258
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
5.00%, 10/25/33 2,700 2,637
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
4.34%, 11/1/34 (d) 1,750 1,715
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
4.57%, 3/25/35 (f) 8,000 8,017
Greenwich Capital Commercial Funding
Corp., Series 2002-C1,
Class A4, 4.95%, 1/11/35 1,000 985
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1,
Class A5, 4.88%, 6/10/36 2,000 1,974
GS Mortgage Securities Corp. II,
Series 2004-C1, Class A1,
3.66%, 10/10/28 5,103 4,936
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%, 8/10/38 4,900 4,824
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 259 253
Hertz Vehicle Financing LLC,
Series 2005-2A, Class A6,
5.08%, 11/25/11 (e) 3,000 2,992
Homebanc Mortgage Trust,
Series 2004-2, 4.98%, 12/25/34 (d) (f) 3,521 3,532
Household Finance Corp., 6.50%, 11/15/08 170 176
IndyMac Index Mortgage Loan Trust,
Series 2005-AR9, 5.47%, 7/25/35 (d) 5,402 5,426
iStar Financial, Inc., 6.00%, 12/15/10 1,500 1,525
JP Morgan Chase Commercial Mortgage
Securities Corp., 5.26%, 7/12/37 865 865
JP Morgan Chase Commercial Mortgage
Securities, Series 200-CIBC, Class A2,
6.00%, 3/15/33 601 602
JP Morgan Mortgage Trust, 4.90%, 4/25/35 (d) 4,243 4,176
JP Morgan Mortgage Trust, 5.66%, 10/25/35 (d) 4,009 3,993
JP Morgan Mortgage Trust, Series 2005-A1,
Class 2A1, 4.88%, 2/25/35 1,180 1,161
JP Morgan Mortgage Trust, Series 2005-A2,
4.93%, 4/25/35 3,000 2,936
CONTINUED
71
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
JP Morgan Mortgage Trust,
Series 2005-A3, 5.17%, 6/25/35 $ 3,356 $ 3,339
Kroger Co., 6.20%, 6/15/12 500 510
LB-UBS Commercial Mortgage Trust,
Series 2005-C3, 4.55%, 7/15/30 330 323
Lehman Brothers Holdings, 8.25%, 6/15/07 170 177
Merrill Lynch & Co., 4.25%, 2/8/10 1,000 969
Morgan Stanley Capital I, 5.11%, 6/15/40 3,200 3,158
Morgan Stanley Dean Witter Capital I,
4.74%, 11/13/36 5,200 5,058
Morgan Stanley Mortgage Loan Trust,
5.00%, 8/25/19 2,599 2,554
Motorola, Inc., 6.50%, 11/15/28 805 869
National City Bank, 7.25%, 7/15/10 3,000 3,259
National Rural Utilities, 7.25%, 3/1/12 125 138
Navistar Financial Corp. Owner Trust,
1.73%, 2/15/07 63 63
Navistar Financial Corp. Owner Trust,
4.57%, 4/15/08 (d) (f) 5,662 5,668
Navistar Financial Corp. Owner Trust,
Series 2004-A, Class B, 2.46%, 3/15/11 1,304 1,262
NCNB Corp., 10.20%, 7/15/15 2,500 3,371
Norfolk Southern Corp., 5.59%, 5/17/25 130 128
Oncor Electric Delivery, 7.00%, 5/1/32 480 538
Pemex Master Trust, 6.13%, 8/15/08 825 840
Republic New York Corp., 7.00%, 3/22/11 2,000 2,160
Residential Accredit Loans, Inc.,
4.65%, 3/25/34 (d) (f) 2,211 2,212
Residential Accredit Loans, Inc.,
Series 2005-QA12, Class CB1,
5.80%, 12/25/35 (d) 4,654 4,688
Residential Asset Mortgage Products,
Inc., 4.52%, 5/25/24 (d) (f) 2,154 2,154
Residential Asset Securities Corp.,
4.62%, 3/25/34 (d) (f) 961 962
SACO I Trust, Series 2004-2, Class A3,
4.85%, 10/25/34 (d) (f) 5,000 5,003
Science Applications International Co.,
5.50%, 7/1/33 2,105 1,954
SLM Corp., 5.00%, 4/15/15 175 169
Structured Asset Securities Corp.,
5.15%, 12/25/34 (d) 1,245 1,197
Swiss Bank Corp. - New York, 7.38%, 7/15/15 2,000 2,323
Thornburg Mortgage Securities Trust,
Series 2004-2, Class A3,
4.66%, 6/25/44 (d) (f) 5,200 5,109
Trans-Canada Pipeline, 5.60%, 3/31/34 750 750
Travelers Property Casualty Corp.,
7.75%, 4/15/26 85 102
Truck Retail Installment Paper Corp.,
4.64%, 12/15/16 (d) (e) (f) 6,950 6,969
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
UBS Preferred Funding Trust I, 8.62%,
10/29/49 (d) $ 925 $ 1,051
US Bank NA, 6.30%, 2/4/14 345 369
Verizon Florida, Inc., 6.13%, 1/15/13 1,575 1,587
Washington Mutual, Series 2003-AR9,
Class 1A6, 4.05%, 9/25/33 (d) 5,862 5,720
Washington Mutual, Series 2004-AR3,
Class A-2, 4.24%, 6/25/34 1,793 1,762
Wells Fargo Mortgage Backed Securities
Trust, 5.14%, 5/25/35 (d) 3,141 3,084
Wells Fargo Mortgage Backed Securities
Trust, Series 2003-N, 4.75%, 12/25/33 (d) 1,550 1,503
YUM! Brands Inc., 7.70%, 7/1/12 1,250 1,386
----------
TOTAL CORPORATE BONDS 189,509
----------
FOREIGN BONDS (1.9%)
France Telecom, 8.75%, 3/1/31 650 849
Midland Bank PLC, 7.63%, 6/15/06 2,000 2,020
United Mexican States, 4.63%, 10/8/08 2,460 2,444
----------
TOTAL FOREIGN BONDS 5,313
----------
U.S. GOVERNMENT AGENCIES (43.8%)
FANNIE MAE (24.7%)
6.05%, 12/1/08 2,859 2,911
6.00%, 5/1/17 263 269
6.50%, 6/1/17 320 329
6.50%, 8/1/17 275 282
5.50%, 12/1/17 1,246 1,254
5.50%, 1/1/18 16 16
5.50%, 1/1/18 812 818
5.50%, 2/1/18 68 69
5.50%, 2/1/18 11 11
4.50%, 5/1/18 11,550 11,212
6.00%, 5/1/18 1,328 1,357
5.00%, 7/1/18 1,000 988
5.50%, 12/1/18 624 628
5.50%, 2/1/25 1,607 1,604
5.00%, 5/1/25 2,533 2,471
7.50%, 6/1/28 308 324
6.50%, 8/1/28 213 219
6.50%, 6/1/29 193 199
6.50%, 4/1/32 429 440
6.50%, 6/1/32 978 1,004
7.00%, 6/1/32 263 275
6.50%, 7/1/32 773 794
6.50%, 7/1/32 553 568
7.50%, 12/1/32 284 297
6.00%, 1/1/33 478 483
6.50%, 3/1/33 320 328
5.00%, 5/1/33 16,500 15,944
5.50%, 5/1/33 8,500 8,412
CONTINUED
72
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. GOVERNMENT
AGENCIES, CONTINUED
FANNIE MAE, CONTINUED
5.50%, 5/25/34 $ 3,150 $ 3,056
7.00%, 9/1/34 369 384
5.50%, 6/1/35 979 968
6.00%, 7/1/35 5,514 5,570
6.00%, 9/1/35 3,026 3,057
5.00%, 11/1/35 4,163 4,023
----------
70,564
----------
FEDERAL HOME LOAN BANK (1.5%)
4.06%, 8/25/09 3,649 3,559
4.00%, 2/25/10 730 714
----------
4,273
----------
FREDDIE MAC (13.7%)
4.50%, 8/15/16 3,000 2,909
4.00%, 1/15/17 7,500 7,061
5.00%, 4/1/18 1,448 1,433
5.00%, 8/1/18 1,587 1,571
5.00%, 2/15/25 3,245 3,080
6.50%, 1/1/29 1,899 1,953
7.00%, 1/1/32 161 168
6.50%, 7/1/32 349 358
6.25%, 7/15/32 1,500 1,759
7.00%, 8/1/32 755 785
6.50%, 9/1/32 156 160
5.50%, 2/1/33 13,900 13,764
6.00%, 9/1/33 632 638
6.50%, 5/15/34 (d) 1,513 1,544
4.50%, 6/1/34 956 898
4.50%, 9/1/34 1,195 1,122
----------
39,203
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (3.9%)
4.50%, 11/16/29 2,387 2,310
5.00%, 7/1/33 4,000 3,940
5.50%, 10/1/33 5,000 5,024
----------
11,274
----------
TOTAL U.S. GOVERNMENT AGENCIES 125,314
----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. TREASURY OBLIGATIONS (2.0%)
U.S. TREASURY BONDS (0.4%)
5.00%, 11/15/27 $ 2,900 1,038
----------
U.S. TREASURY INFLATION
PROTECTED BONDS (1.1%)
1.63%, 1/15/15 (e) 3,250 3,263
----------
U.S. TREASURY NOTES (0.5%)
4.13%, 5/15/15 (e) 850 823
5.45%, 5/15/17 1,080 637
----------
1,460
----------
TOTAL U.S. TREASURY OBLIGATIONS 5,761
----------
INVESTMENTS IN AFFILIATES (1.5%)
Fifth Third Institutional Money Market Fund 4,248,942 4,249
----------
TOTAL INVESTMENTS IN AFFILIATES 4,249
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (1.4%)
Pool of various securities for Fifth
Third Funds $ 4,095 4,095
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 4,095
----------
TOTAL INVESTMENTS (COST $349,653) + - 121.8% 348,258
LIABILITIES IN EXCESS OF OTHER ASSETS - (21.8)% (62,349)
----------
NET ASSETS - 100.0% $ 285,909
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
73
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS (77.7%)
Ace Securities Corp., 5.06%, 9/25/35 (d) $ 3,000 $ 3,005
Ameriprise Financial, Inc., 5.65%, 11/15/15 1,480 1,495
Anthem, Inc., 3.50%, 9/1/07 2,375 2,315
Associated Bank, NA, 4.54%, 6/2/08 (d) 5,000 5,004
AT & T Broadband Corp., 8.38%, 3/15/13 1,750 2,003
Bank of America Corp., 9.38%, 9/15/09 5,000 5,687
Bank of Montreal-Chicago, 7.80%, 4/1/07 3,000 3,092
BankAmerica Capital, 8.00%, 12/15/26 2,000 2,118
Bay View Auto Trust, Series 2005-LJ2,
4.55%, 2/25/14 2,880 2,851
BB&T Corp., 7.25%, 6/15/07 6,000 6,167
Bear Stearns Adjustable Rate Mortgage
Trust, 4.91%, 7/25/34 (d) 3,798 3,690
Bear Stearns Alternative-A Trust,
Series 2005-9, 5.85%, 11/25/35 2,254 2,267
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32 1,508 1,548
Chase Mortgage Finance Corp., 5.50%, 10/25/35 4,641 4,639
Chase Mortgage Finance Corp.,
Series 2005-A1, Class 1A1,
5.42%, 12/25/35 5,037 4,984
Chase Mortgage Finance Corp.,
Series 2005-A2, Class 3A5, 5.47%, 1/25/36 5,005 4,956
Chaseflex Trust, Series 2005-2, 5.96%,
6/25/35 5,086 5,008
CIT Group, Inc., 5.13%, 9/30/14 2,000 1,952
Citicorp Mortgage Securities, Inc.,
Series 2005-3, 5.50%, 4/25/35 2,092 2,064
Citigroup Commercial Mortgage Trust,
Series 2004-C1, 5.29%, 4/15/40 (d) 4,835 4,881
Citigroup Commercial Mortgage Trust,
Series 2005-EMG, 4.38%, 9/20/51 5,000 4,824
Citigroup, Inc., 5.00%, 9/15/14 2,106 2,058
CNH Equipment Trust, Series 2005-A,
Class A4A, 4.51%, 6/15/12 (d) 2,435 2,434
Commerce Group, Inc., 5.95%, 12/9/13 (g) 1,000 1,004
Commercial Mortgage Pass-Through
Certificate, Series 2004-LB3AC,
Class B, 5.28%, 7/10/37 2,500 2,499
Commericial Mortgage Acceptance
Corp., Series 1998-C2, Class D,
6.72%, 9/15/30 (d) 5,550 5,784
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1,
4.25%, 3/25/34 4,959 4,884
Countrywide Alternative Loan Trust,
Series 2005-10CB, Class 1A2,
4.83%, 5/25/35 (d) 2,155 2,163
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Countrywide Alternative Loan Trust,
Series 2005-10CB, Class 1A6, 5.50%, 5/25/35 $ 3,680 $ 3,650
Countrywide Alternative Loan Trust,
Series 2005-7CB, Class M,
5.50%, 4/25/35 2,373 2,322
Countrywide Home Loan, 4.00%, 3/22/11 2,325 2,180
Cox Communications, Inc., 7.75%, 11/1/10 1,550 1,670
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2,
Class A2, 6.52%, 1/17/35 75 74
Credit Suisse First Boston Mortgage
Securities Corp., Series 2002-CKN2,
6.38%, 4/15/37 1,500 1,576
Credit Suisse First Boston Mortgage
Securities Corp., Series 2004-C5,
Class A3, 4.50%, 11/15/37 2,425 2,337
Credit Suisse First Boston, Inc.,
5.13%, 8/15/15 1,910 1,873
Credit-Based Asset Servicing and
Securitization, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36 3,025 3,026
Credit-Based Asset Servicing and
Securitizing, 5.43%, 11/25/36 2,475 2,448
Crown Castle Towers LLC,
Series 2005-1A, 4.64%, 6/15/35 (e) 4,000 3,881
Deutsche Alternative-A Securities Inc.,
Mortgage Loan Trust, 5.05%, 9/25/35 1,440 1,424
Deutsche Mortgage Securities Inc.,
Series 2005-1, 5.75%, 2/25/35 4,586 4,496
Deutsche Mortgage Securities, Inc.,
5.03%, 6/26/35 2,305 2,294
Deutsche Mortgage Securities, Inc.,
Series 2004-2, Class A3, 3.78%, 1/25/34 507 505
DLJ Commercial Mortgage Corp.,
Series 2000-CF1, Class A1B,
7.62%, 6/10/33 2,400 2,608
Duke Capital LLC, 4.37%, 3/1/09 2,000 1,950
Duke Energy Corp., 6.25%, 1/15/12 2,000 2,088
Duke Realty Corp., 4.76%, 12/22/06 (d) 2,880 2,883
First Horizon Mortgage Pass-Through
Trust, Series 2005-5, 5.50%, 10/25/35 2,450 2,384
First Horizon Mortgage Pass-Through
Trust, Series 2005-AR4,
5.35%, 10/25/35 (d) 4,692 4,673
First Tennessee Bank, 5.32%, 12/8/08 500 499
First Union-Lehman Brothers,
7.00%, 4/18/29 (e) 3,220 3,493
Fleet Financial Group, 7.38%, 12/1/09 5,000 5,399
Gazprom International, 7.20%, 2/1/20 (e) 2,000 2,126
Genworth Financial, Inc., 4.95%, 10/1/15 930 899
CONTINUED
74
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
GMAC Commercial Mortgage
Securities, Inc., Series 1997-C1,
Class C, 6.90%, 7/15/29 $ 1,700 $ 1,743
Goldman Sachs Group, Inc., 5.00%, 10/1/14 2,500 2,426
Green Tree Financial Corp.,
Series 1998-6, Class A6, 6.27%, 6/1/30 612 614
Heller Financial, 6.85%, 5/15/31 5,000 5,207
HSBC Bank USA, 4.63%, 4/1/14 2,000 1,906
HSBC Finance Corp., 6.38%, 10/15/11 2,000 2,106
Hyundai Auto Receivables Trust,
Series 2004-A, Class A4, 3.54%, 8/15/11 3,000 2,907
Indiana Michigan Power, 5.05%, 11/15/14 2,035 1,972
Indymac Home Equity Loan,
Series 2002-B, Class B1,
7.28%, 10/25/33 (d) 752 751
International Lease Finance Corp.,
3.13%, 5/3/07 3,700 3,608
International Lease Finance Corp.,
5.88%, 5/1/13 2,500 2,564
Jefferies Group, Inc., 5.50%, 3/15/16 1,000 971
JP Morgan Alternative Loan Trust,
Series 2005-S1, Class 1A2,
5.50%, 12/25/35 2,445 2,424
JP Morgan Alternative Loan Trust,
Series 2005-S1, Class 2A11,
6.00%, 12/25/35 4,888 4,889
JP Morgan Chase & Co., 5.13%, 9/15/14 1,755 1,721
JP Morgan Chase Commercial Mortgage
Securities Corp., 5.26%, 7/12/37 4,460 4,462
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2001-CIB3,
Class A1, 4.47%, 11/15/35 10 10
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2003-LN1,
Class A2, 4.92%, 10/15/37 6,680 6,550
JP Morgan Commercial Mortgage
Finance Corp., Series 2000-C9,
7.77%, 10/15/32 2,305 2,491
JP Morgan Mortgage Trust, 4.90%, 4/25/35 (d) 2,121 2,088
JP Morgan Mortgage Trust,
5.66%, 10/25/35 (d) 2,242 2,233
JP Morgan Mortgage Trust,
Series 2004-A6, Class 3A1, 4.90%, 12/25/34 3,688 3,653
JP Morgan Mortgage Trust,
Series 2005-A1, Class 2A1, 4.88%, 2/25/35 3,081 3,030
JP Morgan Mortgage Trust,
Series 2005-A1, Class 2A3, 4.88%, 2/25/35 2,400 2,344
JP Morgan Mortgage Trust,
Series 2005-A1, Class 3A4, 5.05%, 2/25/35 6,218 6,144
JP Morgan Mortgage Trust,
Series 2005-A2, Class 5A1,
4.37%, 4/25/35 (d) 4,596 4,434
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
JP Morgan Mortgage Trust,
Series 2005-A3, 4.52%, 6/25/35 $ 4,714 $ 4,586
JP Morgan Mortgage Trust,
Series 2005-A3, Class 1B1, 4.98%, 6/25/35 2,611 2,553
JP Morgan Mortgage Trust,
Series 2005-A4, Class 1B1,
5.21%, 7/25/35 (d) 2,822 2,781
JP Morgan Mortgage Trust,
Series 2005-A5, 5.20%, 8/25/35 (d) 3,910 3,832
JP Morgan Mortgage Trust,
Series 2005-A6, 4.98%, 8/25/35 (d) 4,840 4,763
JP Morgan Mortgage Trust,
Series 2005-A6, Class 1B1,
5.18%, 9/25/35 (d) 2,520 2,462
JP Morgan Mortgage Trust,
Series 2005-S1, Class B1, 6.26%, 1/25/35 2,419 2,460
JP Morgan RV Marine Trust,
Series 2004-1A, Class A1, 3.12%, 4/15/11 1,141 1,126
Key Bank N.A., 5.80%, 7/1/14 2,000 2,059
Kinder Morgan Energy Partners, 5.00%, 12/15/13 1,500 1,451
LB-UBS Commercial Mortgage Trust,
Series 2003-C8, Class A4, 5.12%, 11/15/32 2,924 2,904
Long Beach Auto Receivables Trust,
Series 2005-A, 4.25%, 4/15/12 2,760 2,704
Manufacturers & Traders Trust Co.,
3.85%, 4/1/13 (d) 1,075 1,049
Marlin Leasing Receivables LLC,
4.75%, 2/15/09 (e) 3,000 3,006
MassMutual Global Funding II,
3.80%, 4/15/09 (e) 1,390 1,343
Master Adjustable Rate Mortgages
Trust, Series 2003-5, 4.50%, 11/25/33 (d) 1,589 1,593
MBNA Master Credit Card Trust, 7.80%, 10/15/12 3,000 3,343
Merrill Lynch & Co., 4.79%, 8/4/10 3,000 2,953
Merrill Lynch Mortgage Investors, Inc.,
Series 2005-A1, Class 2A1,
4.62%, 12/25/34 (d) 1,972 1,940
Merrill Lynch Mortgage Trust,
Series 2005-CIP1, Class A2, 4.96%, 7/12/38 2,725 2,700
Merrill Lynch Mortgage Trust, Series
2005-LC1, Class AM, 5.26%, 1/12/44 2,525 2,531
Miller Brewing Co., 5.50%, 8/15/13 (e) 1,000 1,006
Morgan Stanley, 4.00%, 1/15/10 2,340 2,240
Morgan Stanley, 4.75%, 4/1/14 3,500 3,331
Morgan Stanley Capital, Series 2005-HQ7,
Class AM, 5.21%, 11/14/42 2,500 2,495
National City Bank, 4.25%, 1/29/10 2,375 2,313
Nationwide Financial Services, 5.10%, 10/1/15 960 933
CONTINUED
75
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Navistar Financial Corp. Owner Trust,
Series 2004-B, Class A4, 3.53%, 10/15/12 $ 5,405 $ 5,214
Nelnet, Inc., 5.13%, 6/1/10 3,100 3,035
NiSource Finance Corp., 4.95%, 11/23/09 (d) 2,795 2,803
Nomura Asset Acceptance Corp.,
Series 2004-AR4, Class 1A2, 4.93%, 12/25/34 1,590 1,574
Nomura Asset Acceptance Corp.,
Series 2005-AR1, Class 1A2, 5.40%, 2/25/35 2,912 2,914
Nomura Asset Acceptance Corp.,
Series 2005-AR2, Class 2A2,
5.57%, 5/25/35 (d) 2,095 2,126
Nomura Asset Acceptance Corp.,
Series 2005-AR3, 5.67%, 7/25/35 2,997 2,962
Nomura Asset Acceptance Corp.,
Series 2005-AR5, Class 2A2,
5.66%, 10/25/35 (d) 2,038 2,036
Pemex Project Funding Master Trust,
7.38%, 12/15/14 (g) 2,000 2,208
Pepco Holdings, Inc., 6.45%, 8/15/12 1,000 1,048
PHH Corp., 7.13%, 3/1/13 1,000 1,045
PNC Mortgage Acceptance Corp.,
7.33%, 12/10/32 5,000 5,340
Popular ABS Mortgage Pass-Through
Trust, 4.98%, 9/15/35 1,435 1,419
Popular NA, Inc., 6.13%, 10/15/06 3,150 3,170
PPG Industries, Inc., 6.50%, 11/1/07 30 31
PPL Electric Utilities, 5.88%, 8/15/07 2,000 2,022
Premark International, 6.88%, 11/15/08 1,000 1,052
Prestige Auto Receivables Trust,
Series 2005-1A, 4.37%, 6/15/12 (e) 2,000 1,976
Private Export Funding, 4.95%, 11/15/15 1,900 1,906
Providian Gateway Master Trust,
Series 2004-DA, Class B,
3.55%, 9/15/11 (e) 1,825 1,779
Prudential Financial, Inc., 4.75%, 6/13/15 2,000 1,921
PSEG Power, 5.00%, 4/1/14 1,500 1,444
RAAC, Series 2005-SP1, 5.25%, 9/25/34 2,103 2,077
Ras Laffan Liquid & Natural Gas,
5.30%, 9/30/20 (e) 2,700 2,633
Regions Financial Corp., 7.00%, 3/1/11 1,275 1,387
Renaissance Home Equity Loan Trust,
4.26%, 5/25/35 (d) 2,440 2,413
Renaissance Home Equity Loan Trust,
Series 2005-2, 4.93%, 8/25/35 (d) 2,500 2,426
Rental Car Finance Corp., 4.59%, 6/25/11 (e) 2,475 2,414
Residential Accredit Loans, Inc.,
Series 2002-QS19, Class A8, 6.00%, 12/25/32 1,311 1,309
Residential Funding Mortgage
Securities, Series 2006-HSA1,
Class A4, 5.49%, 2/25/36 1,500 1,490
Ryder System, Inc., 5.00%, 4/1/11 1,000 970
SACO I Trust, 4.75%, 7/25/35 (d) 2,485 2,485
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
Salomon Brothers Mortgage Securities,
Series 2002-KEY2, Class C, 5.05%, 3/18/36 $ 1,417 $ 1,397
Salomon Smith Barney, 7.13%, 10/1/06 5,000 5,072
Saxon Asset Securities Trust,
Series 2005-4, Class A2C, 4.62%, 11/25/37 2,025 2,029
Sempra Energy, 4.84%, 5/21/08 (d) 5,000 5,010
Southern Copper Corp., 6.38%, 7/27/15 (e) 1,000 989
SOVRISC, 4.63%, 10/31/08 (e) 2,550 2,538
SVO VOI Mortgage, Corp.,
Series 2005-AA, Class A, 5.25%, 2/20/21 (e) 2,827 2,822
U.S. Bank, N.A., 3.75%, 2/6/09 3,000 2,899
UPFC Auto Receivables Trust,
Series 2004-A, Class A3, 3.27%, 9/15/10 1,975 1,946
Vanderbilt Acquisition Loan Trust,
Series 2002-1, Class A4, 6.57%, 5/7/27 2,575 2,651
Vectren Utility Holdings, 5.45%, 12/1/15 1,000 979
Wachovia Bank Commercial Mortgage
Trust, 5.01%, 12/15/35 3,470 3,416
Wells Fargo Mortgage Backed Securities
Trust, Series 2003-N, 4.75%, 12/25/33 (d) 2,400 2,327
WPS Resources Corp., 7.00%, 11/1/09 1,540 1,631
----------
TOTAL CORPORATE BONDS 402,174
----------
FOREIGN BONDS (0.2%)
Korea Electric Power, 4.25%, 9/12/07 (e) 1,000 987
----------
TOTAL FOREIGN BONDS 987
----------
U.S. GOVERNMENT
AGENCIES (18.5%)
FANNIE MAE (3.9%)
3.67%, 5/8/07 5,110 5,037
3.38%, 5/15/07 4,745 4,659
6.25%, 1/25/08 746 756
5.38%, 10/2/13 1,255 1,288
4.92%, 7/25/20 3,195 3,142
5.09%, 7/1/34 2,845 2,833
5.22%, 8/1/34 176 176
5.30%, 12/1/35 2,519 2,513
----------
20,404
----------
FEDERAL HOME LOAN BANK (3.2%)
3.75%, 6/16/08 2,365 2,311
4.50%, 8/8/08 5,000 4,958
4.84%, 1/25/12 2,098 2,122
5.00%, 4/25/12 2,266 2,255
5.27%, 12/28/12 5,000 5,007
----------
16,653
----------
FREDDIE MAC (5.3%)
7.22%, 6/14/06 3,000 3,029
4.90%, 11/3/08 3,000 2,986
6.25%, 3/5/12 (g) 8,500 8,606
4.75%, 6/28/12 (g) 5,000 4,947
5.00%, 5/15/19 (d) 2,500 2,442
CONTINUED
76
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. GOVERNMENT
AGENCIES, CONTINUED
FREDDIE MAC, CONTINUED
6.50%, 5/15/34 (d) $ 1,513 $ 1,544
5.18%, 5/1/35 3,842 3,790
----------
27,344
----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (6.1%)
9.50%, 12/15/09 1,330 1,402
3.96%, 9/16/21 1,625 1,587
4.02%, 12/16/21 4,773 4,655
4.60%, 10/16/24 2,520 2,430
5.25%, 9/16/27 3,075 3,070
4.45%, 8/16/32 2,525 2,426
4.81%, 8/16/32 2,475 2,422
0.98%, 6/17/45 10,836 635
4.95%, 11/16/45 4,800 4,707
0.54%, 3/16/46 14,327 626
5.06%, 9/16/46 2,485 2,429
0.81%, 4/16/47 72,637 2,905
0.80%, 7/16/47 62 3
0.74%, 12/16/47 38,200 1,999
----------
31,296
----------
TOTAL U.S. GOVERNMENT AGENCIES 95,697
----------
U.S. TREASURY OBLIGATIONS (2.1%)
U.S. TREASURY INFLATION PROTECTED BONDS (0.2%)
2.00%, 1/15/16 1,000 996
----------
U.S. TREASURY NOTES (1.9%)
4.25%, 8/15/14 (g) 10,200 9,987
----------
TOTAL U.S. TREASURY OBLIGATIONS 10,983
----------
INVESTMENTS IN AFFILIATES (0.7%)
Fifth Third Institutional Money
Market Fund 3,817,401 3,817
----------
TOTAL INVESTMENTS IN AFFILIATES 3,817
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (5.2%)
Pool of various securities for Fifth
Third Funds $ 26,838 26,838
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 26,838
----------
TOTAL INVESTMENTS (COST $547,115) + - 104.4% 540,496
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.4)% (22,960)
----------
NET ASSETS - 100.0% $ 517,536
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS (63.6%)
Aesop Funding II LLC, 2.75%, 7/20/07 (e) $ 3,990 $ 3,968
Alabama Power Co., 2.80%, 12/1/06 1,190 1,169
American Electric Power Co., 6.13%, 5/15/06 370 371
Australian Gas Light Co.,
6.40%, 4/15/08 (e) 3,210 3,282
Bank of America Commercial Mortgage,
Inc., Series 2001-PB1, Class A1,
4.91%, 5/11/35 807 806
Bank of America Commercial Mortgage,
Inc., Series 2004-1, Class A1,
3.16%, 11/10/39 3,266 3,139
Bank of America Mortgage Securities,
4.16%, 7/25/34 (d) 3,811 3,719
Bank One Issuance Trust, Series 2004-A1,
Class A1, 3.45%, 10/17/11 810 777
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32 2,040 2,095
Bear Stearns Cos., Inc., Series 2003-AC7,
Class A2, 5.25%, 1/25/34 1,690 1,672
Capital One Auto Finance Trust, 3.44%, 6/15/09 3,410 3,381
Centerpoint Energy, 6.50%, 2/1/08 1,600 1,637
Chase Mortgage Finance Corp.,
Series 2005-A1, Class 2A2,
5.26%, 12/25/35 (d) 3,868 3,846
CIT Group, Inc., 5.00%, 11/24/08 2,350 2,345
CNH Equipment Trust, 4.02%, 4/15/09 2,060 2,036
Comcast Cable, 7.63%, 4/15/08 1,550 1,625
Cooper Cameron Corp., 2.65%, 4/15/07 780 754
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 2,907 2,863
Countrywide Home Loans,
5.04%, 4/20/35 (d) 2,949 2,895
Credit Suisse First Boston Mortgage
Securities Corp., Series 1997-C2,
Class A2, 6.52%, 1/17/35 166 166
DaimlerChrysler NA Holding,
4.75%, 1/15/08 1,500 1,484
DLJ Commercial Mortgage Corp.,
Series 1999-CG1, Class A1A, 6.08%, 3/10/32 1,131 1,141
First Boston Mortgage Securities Corp.,
Series 2001-CK6, Class A2, 6.10%, 8/15/36 2,654 2,703
Ford Motor Credit Co., 6.88%, 2/1/06 3,210 3,210
Gannett, Inc., 5.50%, 4/1/07 4,000 4,009
General Motors Acceptance Corp.,
Commercial Mortgage Securities, Inc.,
Series 1996-C1, 7.86%, 11/15/06 (e) 3,325 3,362
CONTINUED
77
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(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 $ 4,000 $ 3,949
General Motors Acceptance Corp.,
Mortgage Corporation Loan Trust,
4.24%, 10/25/33 4,170 4,100
Green Tree Financial Corp., Series 1998-6,
Class A6, 6.27%, 6/1/30 823 825
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A2,
3.84%, 6/10/36 1,467 1,438
Harborview Mortgage Loan Trust,
Series 2004-5, Class 2A6,
3.97%, 6/19/34 (d) 5,730 5,561
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 1,505 1,473
Hertz Vehicle Financing LLC,
Series 2005-2A, Class A2,
4.93%, 2/25/10 (e) 3,375 3,365
Homebanc Mortgage Trust,
Series 2004-2, 4.98%, 12/25/34 (d) 2,838 2,847
Household Automotive Trust,
Series 2002-3, Class A4A, 3.44%, 5/18/09 3,009 2,982
HSBC USA, Inc., 7.00%, 11/1/06 3,194 3,241
Hyundai Auto Receivables Trust,
Series 2005-A, 4.18%, 2/15/12 3,000 2,931
IBM, Corp., 3.80%, 2/1/08 3,030 2,965
Impac Commercial Holdings, Inc.,
Series 1998-C1, Class D, 7.58%, 8/20/30 3,500 3,666
International Lease Finance Corp.,
3.13%, 5/3/07 3,210 3,130
iStar Financial, Inc., 4.88%, 1/15/09 1,600 1,576
John Deere Owner Trust, Series 2004-A,
Class A3, 2.32%, 12/17/07 2,035 2,012
JP Morgan Mortgage Trust,
Series 2005-A1, 4.90%, 2/25/35 3,104 3,053
JP Morgan Mortgage Trust,
Series 2005-A1, Class 4A1,
4.79%, 2/25/35 3,876 3,795
JP Morgan Mortgage Trust,
Series 2005-A2, Class 5A1,
4.37%, 4/25/35 (d) 5,459 5,266
JP Morgan Mortgage Trust,
Series 2005-A3, 5.17%, 6/25/35 5,378 5,352
Kraft Foods, Inc., 5.25%, 6/1/07 1,930 1,932
LB-UBS Commercial Mortgage Trust,
Series 2002-C2, Class A1, 3.83%, 6/15/26 2,221 2,208
Long Beach Auto Receivables Trust,
4.40%, 5/15/10 2,875 2,845
Marlin Leasing Receivables LLC,
4.49%, 1/15/08 (e) 3,200 3,194
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
CORPORATE BONDS, CONTINUED
MBNA America Bank NA, 6.50%, 6/20/06 $ 790 $ 795
MBNA America Bank NA,
4.72%, 5/5/08 (d) 2,020 2,036
Merrill Lynch Mortgage Investors, Inc.,
Series 2003-A1, Class 2A,
4.53%, 12/25/32 690 693
Morgan Stanley Dean Witter,
8.33%, 1/15/07 3,190 3,283
Morgan Stanley Dean Witter Capital I,
3.48%, 9/15/37 1,857 1,824
Morgan Stanley Dean Witter Capital I,
3.92%, 4/14/40 5,680 5,547
National Rural Utilities, 6.00%, 5/15/06 3,300 3,310
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class A4,
3.25%, 10/15/10 3,990 3,881
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class B,
3.79%, 10/15/10 1,068 1,047
Nissan Auto Lease Trust, 3.18%, 6/15/10 830 813
Pemex Finance, Ltd., 8.45%, 2/15/07 667 673
Pemex Finance, Ltd., 9.69%, 8/15/09 608 655
Protective Life US Funding, 3.70%, 11/24/08 1,590 1,538
RAAC, Series 2005-SP1, 5.25%, 9/25/34 2,846 2,810
Simon Property Group LP, 7.13%, 9/20/07 2,400 2,481
SLM Corp., 5.63%, 4/10/07 4,000 4,012
SVO VOI Mortgage, Corp.,
Series 2005-AA, Class A,
5.25%, 2/20/21 (e) 1,720 1,717
Time Warner, Inc., 6.13%, 4/15/06 1,190 1,192
UnitedHealth Group, Inc., 5.20%, 1/17/07 3,390 3,399
Verizon Communications, 7.51%, 4/1/09 3,300 3,471
Washington Mutual, Inc., 4.82%, 10/25/32 710 706
Washington Mutual, Inc.,
Series 2003-AR10, Class A4, 4.08%, 10/25/33 4,020 3,976
Wells Fargo & Co., 5.13%, 2/15/07 4,000 4,001
----------
TOTAL CORPORATE BONDS 186,021
----------
FOREIGN BONDS (0.5%)
Korea Electric Power, 4.25%, 9/12/07 (e) 810 799
Telecom Italia Capital, 4.00%, 11/15/08 650 629
----------
TOTAL FOREIGN BONDS 1,428
----------
CONTINUED
78
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS (0.3%)
OHIO (0.3%)
State Economic Development Revenue,
Ohio Enterprise, Series
3, 4.05%, 3/1/11 (e) $ 1,005 $ 967
----------
TOTAL MUNICIPAL BONDS 967
----------
U.S. GOVERNMENT AGENCIES (24.1%)
FANNIE MAE (4.7%)
3.13%, 12/15/07 1,190 1,155
4.65%, 12/25/12 3,549 3,511
4.73%, 4/1/33 (d) 2,850 2,828
5.21%, 9/1/34 3,219 3,208
5.01%, 4/1/35 3,088 3,088
----------
13,790
----------
FEDERAL HOME LOAN BANK (3.9%)
3.75%, 8/15/07 3,670 3,613
4.00%, 10/27/08 4,220 4,136
4.75%, 10/25/10 3,690 3,658
----------
11,407
----------
FREDDIE MAC (7.7%)
5.00%, 2/1/07 445 445
2.85%, 2/23/07 6,410 6,279
4.88%, 3/15/07 6,020 6,020
5.13%, 10/15/08 1,000 1,009
3.99%, 3/1/34 (d) 3,208 3,135
4.77%, 7/1/35 (d) 5,749 5,627
----------
22,515
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (7.8%)
4.88%, 5/15/07 2,060 2,061
2.87%, 2/16/20 5,408 5,207
6.11%, 11/16/21 3,031 3,085
3.27%, 1/16/23 2,862 2,745
4.29%, 9/16/25 3,162 3,095
3.72%, 12/16/26 3,514 3,392
4.00%, 4/16/30 3,187 3,093
----------
22,678
----------
TOTAL U.S. GOVERNMENT AGENCIES 70,390
----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. TREASURY OBLIGATIONS (7.5%)
U.S. TREASURY INFLATION
PROTECTED BONDS (1.0%)
3.63%, 1/15/08 $ 2,400 $ 3,036
----------
U.S. TREASURY NOTES (6.5%)
3.00%, 12/31/06 (g) 4,500 4,435
3.13%, 5/15/07 (g) 1,010 992
3.00%, 11/15/07 (g) 6,410 6,242
3.38%, 2/15/08 (g) 3,000 2,934
4.75%, 11/15/08 (g) 4,160 4,187
----------
18,790
----------
TOTAL U.S. TREASURY OBLIGATIONS 21,826
----------
INVESTMENTS IN AFFILIATES (3.0%)
Fifth Third Institutional Money Market Fund 8,874,620 8,875
----------
TOTAL INVESTMENTS IN AFFILIATES 8,875
----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (6.3%)
Pool of various securities for Fifth
Third Funds $ 18,281 18,281
----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 18,281
----------
TOTAL INVESTMENTS (COST $312,613) + - 105.3% 307,788
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.3)% (15,543)
----------
NET ASSETS - 100.0% $ 292,245
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
79
U.S. GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. GOVERNMENT AGENCIES (97.8%)
FANNIE MAE (29.8%)
5.50%, 5/2/06 $ 1,000 $ 1,002
5.25%, 6/15/06 1,500 1,503
6.25%, 1/25/08 1,529 1,550
4.00%, 9/2/08 1,000 979
6.38%, 6/15/09 1,100 1,153
6.63%, 9/15/09 1,000 1,060
4.62%, 4/25/10 789 793
4.40%, 12/25/12 760 756
5.00%, 7/1/18 TBA 2,000 1,976
5.50%, 6/1/33 TBA 2,000 1,979
4.31%, 1/1/35 2,122 2,085
3.99%, 3/25/40 (d) 1,231 1,218
4.63%, 8/25/44 (d) 1,515 1,518
----------
17,572
----------
FEDERAL FARM CREDIT BANK (1.7%)
6.60%, 7/7/06 1,000 1,009
----------
FEDERAL HOME LOAN BANK (8.6%)
4.19%, 2/13/06 ** 1,990 1,987
6.09%, 6/2/06 1,500 1,507
4.06%, 8/25/09 730 712
4.84%, 1/25/12 874 884
----------
5,090
----------
FINANCING CORPORATION (11.9%)
3.59%, 4/5/09 ** 2,000 1,719
4.58%, 2/25/11 (d) 2,000 2,000
4.21%, 12/6/11 ** 2,000 1,522
4.81%, 6/6/15 ** 2,000 1,265
6.37%, 11/11/17 ** 1,000 553
----------
7,059
----------
FREDDIE MAC (24.8%)
2.75%, 3/15/08 1,450 1,391
5.50%, 7/15/10 1,000 1,004
6.88%, 9/15/10 2,000 2,167
5.88%, 3/21/11 1,000 1,039
4.50%, 11/15/12 1,000 983
4.00%, 12/15/21 610 602
5.00%, 12/15/32 1,073 1,071
6.00%, 6/1/33 2,000 2,021
5.00%, 1/15/34 1,000 944
6.50%, 5/15/34 (d) 1,513 1,544
5.50%, 7/15/35 1,977 1,882
----------
14,648
----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
U.S. GOVERNMENT AGENCIES,
CONTINUED
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (12.9%)
3.59%, 11/16/17 $ 457 $ 443
3.96%, 9/16/21 812 793
3.27%, 1/16/23 865 829
4.39%, 5/16/23 879 864
4.50%, 12/16/25 553 552
5.50%, 2/20/31 2,000 2,024
5.50%, 12/20/32 1,000 982
5.50%, 11/20/33 1,000 980
0.98%, 6/17/45 2,946 173
----------
7,640
----------
SMALL BUSINESS ADMINISTRATION (6.2%)
4.94%, 8/10/15 3,700 3,646
----------
TENNESSEE VALLEY AUTHORITY (1.9%)
6.79%, 5/23/12 1,000 1,102
----------
TOTAL U.S. GOVERNMENT AGENCIES 57,766
----------
U.S. TREASURY OBLIGATIONS (6.5%)
U.S. TREASURY INFLATION
PROTECTED BONDS (1.7%)
1.63%, 1/15/15 1,000 1,004
----------
U.S. TREASURY NOTES (4.8%)
5.50%, 2/15/08 800 815
5.63%, 5/15/08 1,000 1,024
4.75%, 5/15/14 1,000 1,014
----------
2,853
----------
TOTAL U.S. TREASURY OBLIGATIONS 3,857
----------
INVESTMENTS IN AFFILIATES (5.3%)
Fifth Third Institutional Government
Money Market Fund 3,117,337 3,117
----------
TOTAL INVESTMENTS IN AFFILIATES 3,117
----------
TOTAL INVESTMENTS (COST $65,518) + - 109.6% 64,740
LIABILITIES IN EXCESS OF OTHER ASSETS - (9.6)% (5,653)
----------
NET ASSETS - 100.0% $ 59,087
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
80
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS (98.0%)
ARIZONA (4.8%)
Arizona State University,
(Callable 7/1/15 @ 100), 5.00%, 7/1/26 $ 1,000 $ 1,051
Greater Arizona Development Authority,
6.00%, 8/1/13, (Callable 8/1/08 @ 102) 1,070 1,152
----------
2,203
----------
CALIFORNIA (8.3%)
Cal Poly Pomona Foundation, Inc., 5.50%,
2/1/20, (Callable 2/1/11 @ 101) 265 290
La Canada University School District,
Series A, GO, 5.50%, 8/1/24,
(Callable 8/1/14 @ 100) 1,000 1,103
Long Beach Community College District,
Series B, GO, 5.00%, 5/1/30 1,000 1,045
Placentia -Yorba Linda Union School
District, Series B, GO, 5.38%, 8/1/22,
(Callable 8/1/14 @ 100) 1,000 1,096
Sacramento County Sanitation Financing
Authority, 6.00%, 12/1/15,
(Callable 12/1/10 @ 101) 250 277
----------
3,811
----------
COLORADO (14.1%)
Boulder Sales and Use Tax, Series A, 6.00%,
12/15/18, (Callable 12/15/09 @ 101) 2,000 2,196
Denver City & County Airport Revenue,
5.00%, 11/15/08 1,020 1,055
Douglas County School District No.1,
GO, 5.75%, 12/15/21,
(Callable 12/15/14 @ 100) 1,000 1,142
E-470 Public Highway Authority Revenue,
Series C, 6.00%, 9/1/07 1,000 1,041
University of Colorado, Enterprise
System Revenue, 5.00%, 6/1/25,
(Callable 6/1/15 @ 100) 1,000 1,053
----------
6,487
----------
FLORIDA (1.3%)
Jupiter, Community Center Project,
5.50%, 7/1/21 500 580
----------
ILLINOIS (9.5%)
Chicago Metropolitan Water Reclamation
District-Greater Chicago, Capital
Improvements, GO, 7.25%, 12/1/12 500 608
Chicago Single Family Mortgage Revenue,
Series A, (AMT), 4.70%, 10/1/17,
(Callable 4/1/09 @ 102) 195 195
Development Finance Authority, Elmhurst
Community School, 6.38%, 1/1/17,
(Prerefunded 1/1/11 @ 100) 1,700 1,917
Finance Authority,
(Callable 12/1/13 @ 100),
5.00%, 12/1/14 300 308
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
ILLINOIS, CONTINUED
State GO, 5.88%, 10/1/17,
(Callable 1/1/09 @ 100) $ 300 $ 324
State Sales Tax Revenue, 5.00%, 6/15/08 1,000 1,036
----------
4,388
----------
IOWA (5.0%)
Finance Authority, Private College
Revenue, Drake University Project,
6.50%, 12/1/11 2,055 2,301
----------
KANSAS (4.0%)
Geary County School District, GO,
(Callable 9/1/15 @ 100), 5.25%, 9/1/17 1,675 1,849
----------
KENTUCKY (1.0%)
Area Development Financing Lease
Program, 3.00%, 6/1/09 470 455
----------
MICHIGAN (14.8%)
Grand Ledge Public School District,
5.00%, 5/1/22, (Callable 5/1/15 @ 100) 1,000 1,059
Higher Education Student Loan
Authority Revenue,
Series XII-W, (AMT), 4.75%, 3/1/09 1,000 1,035
Jackson County Economic Development
Corp., Limited Obligation Revenue,
Vista Grande Villa, Series A,
3.07%, 11/1/31 (d) 300 300
Kent Hospital Financial Authority Revenue,
Spectrum Health, Series A, 5.50%,
1/15/13, (Prerefunded 7/15/11 @ 101) 2,000 2,198
Kent, Hospital Financial Authority
Revenue, Spectrum Health, Series B,
5.00%, 7/15/11 375 396
State Hospital Financial Authority Revenue,
Marquette General Hospital
Obligations Group-A, 5.00%, 5/15/13 500 520
State Strategic Fund Solidwaste Disposal
Revenue, 4.63%, 12/1/12 250 253
Strategic Fund, Hope Network Project,
Series B, 5.13%, 9/1/13,
(Callable 9/1/08 @ 102) 1,000 1,051
----------
6,812
----------
MINNESOTA (9.0%)
Becker Independent School District
No. 726, 6.00%, 2/1/21,
(Callable 2/1/10 @ 100) 1,000 1,090
Public Facilities Authority Drinking Water,
Series A, (Callable 3/1/14 @ 100),
5.00%, 3/1/17 1,500 1,616
St. Paul, Housing & Redevelopment
Authority Revenue, Smith Avenue
Transit Center, 3.50%, 6/1/12,
(Callable 6/1/10 @100) 500 492
CONTINUED
81
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(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 $ 970 $ 926
----------
4,124
----------
MISSOURI (5.7%)
Greene County School District, 6.20%,
3/1/18, (Callable 3/1/10 @ 100) 2,400 2,628
----------
NEBRASKA (3.5%)
Omaha Series A, GO, 6.50%, 12/1/13 1,365 1,620
----------
NEW MEXICO (2.3%)
Mortgage Financial Authority, Single Family
Mortgage, (AMT), 5.50%, 7/1/36 990 1,066
----------
NEW YORK (3.4%)
Environmental Facilties Corp., Solid
Waste Disposition Revenue, Series A,
2.90%, 5/1/12 500 499
Tollway Authority Highway & Bridge
Trust Fund, 5.00%, 4/1/19 1,000 1,075
----------
1,574
----------
OKLAHOMA (2.3%)
Tulsa International Airport (AMT),
5.50%, 6/1/10 1,000 1,046
----------
OREGON (2.3%)
Sunrise Water Authority Revenue, 5.25%,
3/1/24, (Callable 3/1/14 @ 100) 1,000 1,078
----------
PENNSYLVANIA (3.8%)
Higher Educational Facilities Authority
Revenue, Health System, Series A,
5.00%, 8/15/07 500 509
Lehigh Northampton Airport (AMT), 5.00%,
1/1/19, (Callable 1/1/15 @ 100) 1,175 1,222
----------
1,731
----------
PUERTO RICO (2.4%)
Public Building Authority Revenue,
Series I, 5.50%, 7/1/23,
(Callable 7/1/14 @ 100) 1,000 1,088
----------
TEXAS (0.5%)
Tomball Hospital Authority Revenue,
4.00%, 7/1/06 250 250
----------
TOTAL MUNICIPAL BONDS 45,091
----------
CONTINUED
SHARES VALUE
------------ ----------
MONEY MARKETS (0.6%)
AIM Tax Free Money Market Fund 104 $ --#
Dreyfus Tax Exempt Money
Market Fund 758 1
Goldman Sachs Financial Tax Free
Money Market Fund 303 --#
Merrill Lynch Institutional Tax Exempt
Fund 295,814 296
----------
TOTAL MONEY MARKETS 297
----------
TOTAL INVESTMENTS (COST $43,564) + - 98.6% 45,388
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.4% 638
----------
NET ASSETS - 100.0% $ 46,026
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
82
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS (100.9%)
ALABAMA (4.0%)
Birmingham Baptist Medical Center
Special Care Facilities Financing
Authority, Series A, 5.00%, 11/15/14 $ 4,000 $ 4,139
Mobile County, Refunding &
Improvements Warrants, 5.25%,
8/1/17, (Callable 8/1/14 @ 100) 3,080 3,390
----------
7,529
----------
ALASKA (0.4%)
State Housing Finance Corp., Housing
Development, Series A (AMT),
2.35%, 12/1/07 745 722
----------
ARIZONA (4.3%)
Mesa Street & Highway Revenue,
6.25%, 7/1/12 1,000 1,146
Mesa Street & Highway Revenue, 6.25%,
7/1/13, (Prerefunded 7/1/11 @ 100) 1,000 1,133
Pima County University School District,
No. 012 Sunnyside, GO, 5.75%,
7/1/12, (Prerefunded 7/1/09 @ 100) 1,050 1,130
Tempe Performing Arts Center, Excise
Tax Revenue, 5.25%, 7/1/17,
(Callable 7/1/14 @ 100) 2,000 2,200
Tucson Street & Highway, User Revenue,
Junior Lien, Series 1994-E, 6.75%, 7/1/13 2,000 2,379
----------
7,988
----------
CALIFORNIA (2.4%)
La Canada University School District,
Series A, GO, 5.50%, 8/1/24,
(Callable 8/1/14 @ 100) 375 414
Orange County, Series A, Refunding
Recovery, 6.00%, 6/1/10 3,000 3,321
Placentia -Yorba Linda Union School
District, Series B, GO, 5.375%,
8/1/22, (Callable 8/1/14 @ 100) 675 740
----------
4,475
----------
COLORADO (6.4%)
Arapahoe County Certificate Participation,
4.00%, 2/15/19, (Callable 2/15/06 @ 100) 1,000 988
Denver City & County Airport Revenue,
Series B, (AMT), 5.50%, 11/15/07 1,000 1,034
Denver City & County Airport Revenue,
Series D, (AMT), 5.00%, 11/15/07 2,655 2,724
El Paso County School District
No. 038, GO, 6.375%, 12/1/16,
(Prerefunded 12/1/10 @ 100) 1,150 1,298
El Paso County School District
No. 038, GO, 6.375%, 12/1/18,
(Prerefunded 12/1/10 @ 100) 1,005 1,134
Housing & Finance Authority, Single
Family Program, Series C-3, 4.70%,
10/1/22, (Callable 10/1/09 @ 102) 5 5
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
COLORADO, CONTINUED
Larimer County School District No. R1,
GO, 5.50%, 12/15/09 $ 2,000 $ 2,149
Regional Transportation District,
2.30%, 12/1/22 1,000 985
Summitt County School District
No. RE1, GO, 5.75%, 12/1/12,
(Callable 12/1/11 @ 100) 1,465 1,632
----------
11,949
----------
CONNECTICUT (0.9%)
New Haven, Series B, GO, 5.75%, 11/1/09 1,500 1,623
----------
FLORIDA (1.1%)
Lakeland Electric & Water Revenue,
ETM, 5.90%, 10/1/07 2,000 2,084
----------
HAWAII (1.7%)
Airport Systems Revenue, Series B
(AMT), 8.00%, 7/1/10 2,000 2,320
Highway Revenue, 5.50%, 7/1/10 765 827
----------
3,147
----------
ILLINOIS (3.6%)
Chicago Metropolitan Water Reclamation
District, Capital Improvement, ETM,
GO, 5.50%, 12/1/10 3,000 3,270
Development Financial Authority Revenue,
DePaul University, Series C,
5.00%, 10/1/06 125 126
Development Financial Authority Revenue,
DePaul University, Series C,
5.00%, 10/1/07 200 204
Educational Facilities Authority, Art
Institute, 4.125%, 3/1/30 1,000 998
Financial Authority, 4.75%, 12/1/10 200 205
Financial Authority, 5.00%, 12/1/11 250 259
Financial Authority, 5.00%, 12/1/12 275 284
Financial Authority, 5.00%, 12/1/13 275 284
Financial Authority Gas Supply Revenue,
Peoples Gas Light & Coke Co.,
4.30%, 6/1/35 1,000 1,019
----------
6,649
----------
INDIANA (6.1%)
Fort Wayne International Airport Building
Corp. Revenue, (AMT), 5.00%, 7/1/12 1,615 1,680
Fort Wayne International Airport Building
Corp. Revenue, (AMT), 5.00%, 7/1/13 1,695 1,759
Michigan City Independent School
Building Corp., 5.00%, 7/5/09 1,400 1,469
Municipal Power Supply Agency System
Revenue, Series B, 5.875%, 1/1/10 2,000 2,174
Municipal Power Supply Agency System
Revenue, Series B, 6.00%, 1/1/13 3,000 3,409
State Financial Authority, Series A,
5.00%, 2/1/15 250 271
CONTINUED
83
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Tippecanoe County Independent
Elementary School Building Corp.,
5.10%, 7/15/06 $ 505 $ 509
----------
11,271
----------
IOWA (0.1%)
Iowa State University, Science &
Technology Revenue, 3.75%, 7/1/10 140 141
----------
KENTUCKY (0.7%)
Floyd County Public Properties Corp.,
3.00%, 5/1/07, (Callable 3/6/06 @ 100) 250 244
Housing Corp., 3.45%, 1/1/10 275 274
Kenton County Airport Board,
5.00%, 3/1/10 730 763
----------
1,281
----------
MICHIGAN (24.4%)
Building Authority Revenue,
5.00%, 10/15/29 1,500 1,595
Building Authority Revenue, Police
Communications, 5.50%, 10/1/12 350 387
Central Michigan University, 4.00%,
10/1/16, (Callable 4/1/16 @ 100) 250 249
Certificate of Participation, Series A,
5.00%, 9/1/31 2,000 2,115
Comprehensive Transportation,
5.50%, 5/15/11 950 1,040
Detroit, GO, (AMT), 5.50%, 4/1/08 1,195 1,240
Grand Rapids & Kent County Joint Building
Authority, GO, 5.50%, 10/1/08 565 595
Higher Education Facilites Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/07 765 789
Higher Education Facilities Authority
Revenue, Hope College Project,
4.50%, 10/1/07 250 255
Higher Education Facilities Authority
Revenue, Hope College Project, 4.80%,
10/1/10, (Callable 10/1/09 @ 100) 590 603
Higher Education Facilities Authority,
Hope College Project, 4.70%, 10/1/09 200 206
Higher Education Student Loan
Authority Revenue, Series XII-Q,
(AMT), 5.05%, 9/1/08 3,885 3,981
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.60%, 9/1/08 1,000 1,026
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 5.20%, 9/1/08 4,225 4,360
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.75%, 3/1/09 1,800 1,862
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Higher Education Student Loan
Authority Revenue, Series XVII-I,
(AMT), 3.95%, 3/1/11 $ 1,000 $ 996
Hospital Finance Authority, 4.35%, 3/1/09 500 505
Hospital Financial Authority Revenue,
Edward W. Sparrow Group, 5.25%, 11/15/08 1,125 1,173
Hospital Financial Authority Revenue,
Edward W. Sparrow Hospital, 5.25%, 11/15/09 1,165 1,227
Hospital Financial Authority Revenue,
Holland Community Hospital, Series A,
5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505 534
Jackson County Economic Development
Corp., Limited Obligation Revenue, Vista
Grande Villa, Series A, 3.07%, 11/1/31 (d) 200 200
Kent Hospital Financial Authority Revenue,
Spectrum Health, Series A, 5.50%,
1/15/13, (Prerefunded 7/15/11 @ 101) 125 137
Kent Hospital Financial Authority, Revenue,
Spectrum Health, Series A, 5.25%, 1/15/09 1,075 1,121
Kent, Hospital Financial Authority Revenue,
Spectrum Health, Series B, 5.00%, 7/15/11 1,900 2,008
Montague Public School District, GO, 5.50%,
5/1/12, (Callable 11/1/11 @ 100) 1,005 1,097
Muskegon Water System, Series A,
5.25%, 11/1/09 340 362
State Hospital Financial Authority Revenue,
Marquette General Hospital Obligations
Group-A, 5.00%, 5/15/13 1,005 1,045
State Housing Development Authority,
Multi-Family Revenue, 4.15%, 4/20/11 320 321
State Housing Development Authority,
Multi-Family Revenue, 4.40%, 4/20/13 175 176
State Housing Development Authority,
Series A, (AMT), 3.95%, 12/1/12 660 658
State Strategic Fund Solidwaste Disposal
Revenue, 4.625%, 12/1/12 750 758
Strategic Fund, Limited Obligation
Revenue, Hope Network Project,
Series B, 4.80%, 9/1/08 1,000 1,027
Strategic Fund, Limited Obligation
Revenue, International Project,
3.00%, 8/1/07 1,415 1,390
Strategic Fund, Limited Obligation Revenue,
International Project, 4.75%, 8/1/11 2,240 2,319
Strategic Fund, Limited Obligation Revenue,
International Project, 5.00%, 8/1/13 820 862
Strategic Fund, Limited Obligation Revenue,
Solid Waste Disposal, 3.15%, 12/1/13 1,000 1,000
Trunk Line, Series A, 5.25%, 11/1/13 600 658
CONTINUED
84
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
University of Michigan Hospital Revenue,
5.00%, 12/1/08 $ 4,130 $ 4,303
Wyandotte Electric Revenue, (AMT),
5.00%, 10/1/13 600 634
Wyandotte Electric Revenue, (AMT),
4.50%, 10/1/14 600 612
----------
45,426
----------
MINNESOTA (2.7%)
Elk River, Independent School District
No. 728, Series C, 4.00%, 2/1/17 735 734
Housing Finance Agency, 4.55%,
7/1/12, (Callable 7/1/11 @ 100) 1,150 1,161
Public Facilities Authority Drinking Water,
Series A, (Callable 3/1/14 @ 100),
5.00%, 3/1/17 700 754
St. Paul, Housing & Redevelopment
Authority Revenue, Smith Avenue
Transit Center, 3.50%, 6/1/12,
(Callable 6/1/10 @100) 2,000 1,967
State Housing Finance Agency, Residential
Housing, (AMT), 3.40%, 7/1/12 375 358
----------
4,974
----------
MISSOURI (1.6%)
Brentwood Tax Increment Revenue,
Brentwood Square Project,
4.125%, 5/1/11 245 244
Cape Girardeau County Building
Corporate Reorganization School
District, 4.00%, 3/1/14 485 493
Clay County Public School District
No. 53, Liberty Direct Deposit Program,
GO, 6.25%, 3/1/17,
(Callable 3/1/10 @ 100) 2,000 2,194
----------
2,931
----------
NEBRASKA (0.7%)
Financial Authority Single Family
Housing, Series C, 3.75%, 9/1/11 240 238
Financial Authority Single Family
Housing, Series C, 3.85%, 3/1/12 150 149
Investment Financial Authority, Single
Family Housing Revenue, Series D,
(AMT), 4.10%, 9/1/10 365 362
Investment Financial Authority, Single
Family Housing Revenue, Series D,
(AMT), 4.25%, 9/1/11 520 520
----------
1,269
----------
NEVADA (3.1%)
Clark County School District, Series D,
GO, 5.00%, 6/15/16,
(Callable 12/15/13 @ 100) 5,000 5,335
Douglas County, Solid Waste Disposal,
3.00%, 12/1/06 100 100
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
NEVADA, CONTINUED
Douglas County, Solid Waste Disposal,
3.00%, 12/1/07 $ 100 $ 99
Douglas County, Solid Waste Disposal,
3.50%, 12/1/08 100 100
Douglas County, Solid Waste Disposal,
3.75%, 12/1/09 100 100
----------
5,734
----------
NEW JERSEY (1.5%)
Turnpike Authority Revenue, Series A,
6.00%, 1/1/13 575 654
Turnpike Authority Revenue, Series A,
ETM, 6.00%, 1/1/13 1,925 2,194
----------
2,848
----------
NEW MEXICO (3.1%)
Mortgage Finance Authority, Series A2,
Class I, (AMT), 3.90%, 1/1/19,
(Callable 1/1/16 @ 100) 1,250 1,251
Mortgage Finance Authority, Series A2,
Class I, (AMT), 4.40%, 1/1/27,
(Callable 1/1/16 @ 100) 2,000 1,998
Mortgage Financial Authority, Single Family
Mortgage, (AMT), 4.05%, 7/1/26 1,000 997
Mortgage Financial Authority, Single Family
Mortgage, (AMT), 5.50%, 7/1/36 985 1,061
Taos County Gross Receipts Tax Revenue,
County Educational Improvements,
3.875%, 10/1/11 565 534
----------
5,841
----------
NEW YORK (1.6%)
Environmental Facilties Corp., Solid Waste
Disposition Revenue, Series A,
2.90%, 5/1/12 2,000 1,995
Utica Industrial Development Agency
Civic Facility, 4.50%, 10/1/34 1,000 1,027
----------
3,022
----------
NORTH CAROLINA (3.6%)
Charlotte, Series B, GO, 5.00%, 6/1/16,
(Callable 6/1/15 @ 100) 6,115 6,686
----------
NORTH DAKOTA (0.3%)
Department of Transportation, Grant &
Revenue Anticipation Bonds,
3.50%, 6/1/12 400 396
State Water Commission, 4.00%, 8/1/14 220 222
----------
618
----------
OHIO (2.4%)
Economic Development Revenue,
(AMT), 4.08%, 6/1/13 500 494
Higher Educational Facilities Revenue,
Ohio Northern University Project,
3.875%, 5/1/13 645 639
Housing Financial Agency Mortgage
Revenue, (AMT), 3.55%, 3/1/10 1,000 991
CONTINUED
85
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Housing Financial Agency Mortgage
Revenue, (AMT), 3.70%, 3/1/11 $ 1,000 $ 993
Housing Financial Agency Mortgage
Revenue, (AMT), 4.00%, 3/1/14 500 495
State Higher Education Facility
Revenue, John Carroll University,
4.00%, 11/15/09 500 505
Summit County, GO, 6.00%, 12/1/09 400 436
----------
4,553
----------
OKLAHOMA (1.3%)
Cleveland County Independent School
District, GO, 4.00%, 1/1/11 2,380 2,421
----------
OREGON (1.0%)
State Department Transportation
Highway Usertax, Series A, 5.25%,
11/15/16, (Callable 11/15/14 @ 100) 1,775 1,949
----------
PENNSYLVANIA (4.6%)
Chartiers Valley Joint School, ETM,
6.15%, 3/1/07 4,110 4,237
Clarion County, Industrial Development
Authority, Water Facilities Revenue,
(AMT), 3.60%, 12/1/32 2,000 1,974
Higher Educational Facilities Authority,
Widener University, 3.60%, 7/15/11 250 242
Higher Educational Facilities Authority,
Widener University, 3.75%, 7/15/12 405 391
Higher Educational Facilities Authority,
Widener University, 3.85%, 7/15/13 430 415
Housing Finance Agency, 4.50%, 10/1/09 1,195 1,219
----------
8,478
----------
PUERTO RICO (2.8%)
Commonwealth, Refunding Series A,
5.00%, 7/1/30 3,000 3,128
Public Buildings Authority Revenue,
Refunding, Government Facilities,
Series K, 4.50%, 7/1/22 2,000 2,017
----------
5,145
----------
RHODE ISLAND (1.5%)
Depositors Economic Protection Corp.,
Series A, ETM, 5.875%, 8/1/11 2,535 2,814
----------
SOUTH CAROLINA (0.5%)
Anderson County School District No. 002,
Series B, GO, 6.00%, 3/1/13,
(Callable 3/1/10 @ 101) 890 980
----------
TENNESSEE (3.5%)
Clarksville, Public Building Authority Revenue,
Pooled Funding, Municipal Bond Fund,
3.08%, 7/1/34 (d) 900 900
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
TENNESSEE, CONTINUED
Housing Development Agency, Series A,
4.00%, 7/1/10 $ 1,100 $ 1,102
Metropolitan Nashville Airport Authority
Revenue, (AMT), 5.375%, 7/1/14,
(Callable 7/1/08 @ 102) 2,570 2,701
Shelby County, Health Educational &
Housing Facilities Board, 5.00%, 9/1/24 (e) 1,795 1,850
----------
6,553
----------
TEXAS (3.0%)
Cypress-Fairbanks Independent School
District, 5.00%, 2/15/22 1,500 1,580
Dallas Waterworks & Sewer Systems
Revenue, 5.25%, 10/1/09 1,000 1,060
Hidalgo County Health Services, Mission
Hospital, Inc. Project, 4.00%, 8/15/06 250 250
Huffman Independent School District,
GO, 7.00%, 2/15/06 100 100
Huffman Independent School District,
GO, 7.00%, 2/15/07 160 166
Municipal Power Agency Revenue,
4.00%, 9/1/12 500 503
Series A, GO, 6.00%, 10/1/08 1,600 1,704
Tomball Hospital Authority Revenue,
4.00%, 7/1/06 250 250
----------
5,613
----------
UTAH (0.8%)
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, (AMT),
2.00%, 7/1/06 680 672
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, (AMT),
2.35%, 7/1/07 880 861
----------
1,533
----------
VIRGINIA (1.2%)
Richmond, GO, 5.375%, 7/15/13,
(Prerefunded 7/15/11 @ 101) 2,000 2,195
----------
WASHINGTON (4.0%)
Grant County Public Utility District
No. 002, Electric Revenue, 5.00%, 1/1/11 2,485 2,645
King County School District No. 415,
Kent, Series A, GO, 5.55%, 12/1/11 2,000 2,184
Motor Vehicle Fuel Tax, R-92D,
6.25%, 9/1/07 1,000 1,044
Port Tacoma, Series A, GO, (AMT),
4.90%, 12/1/07 1,010 1,034
Yakima County, GO, 5.25%, 12/1/16,
(Callable 12/1/12 @ 100) 425 457
----------
7,364
----------
TOTAL MUNICIPAL BONDS 187,806
----------
CONTINUED
86
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
------------ ----------
MONEY MARKETS (0.1%)
AIM Tax Free Money Market Fund 103 $ --#
Dreyfus Tax Exempt Money
Market Fund 2,099 2
Goldman Sachs Financial Tax Free
Money Market Fund 396 --#
Merrill Lynch Institutional Tax
Exempt Fund 265,542 266
----------
TOTAL MONEY MARKETS 268
----------
TOTAL INVESTMENTS (COST $183,871) + - 101.0% 188,074
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.0)% (1,883)
----------
NET ASSETS - 100.0% $ 186,191
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS (97.9%)
OHIO (94.6%)
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 $ 1,066
American Municipal Power - Ohio, Inc.,
5.25%, 1/1/11 1,825 1,967
Beavercreek Local School District,
6.60%, 12/1/15 1,500 1,779
Berea, GO, 5.13%, 12/1/13 1,080 1,129
Building Authority, 5.25%, 10/1/10,
(Callable 4/1/09 @ 101) 2,410 2,561
Butler County Hospital Facilities
Revenue, 4.75%, 11/15/18,
(Callable 11/15/08 @ 101) 2,000 1,972
Butler County Transportation
Improvement District, Series A, 6.00%,
4/1/12, (Callable 4/1/08 @ 102) 2,000 2,149
Cincinnati City School District,
Classroom Facilities Construction &
Improvements, 5.25%, 12/1/14,
(Callable 12/1/13 @ 100) 3,000 3,288
Cleveland Public Power System
Revenue, 5.25%, 11/15/16,
(Callable 11/15/06 @ 102) 4,900 5,068
Cleveland Stadium Project, 5.25%,
11/15/11, (Callable 11/15/07 @ 102) 4,110 4,327
Cleveland, GO, 5.25%, 12/1/17 1,125 1,235
Cleveland, Non Tax Revenue, Cleveland
Stadium Project, 5.00%, 12/1/15 1,225 1,321
Cuyahoga County Hospital Revenue,
5.50%, 2/15/09 2,245 2,370
Cuyahoga County Jail Facilities, GO,
5.25%, 10/1/13 3,000 3,299
Dayton-Montgomery County Port
Authority, Development-Parking
Garage Project, Series A, 5.00%, 11/15/17 1,030 1,047
Economic Development Revenue, 3.50%, 12/1/07 280 276
Economic Development Revenue, 4.40%, 12/1/12 815 819
Erie County Hospital Facilities
Revenue, 5.00%, 8/15/08 400 408
Erie County Hospital Facilities Revenue,
5.50%, 8/15/12 250 266
Euclid City School District, GO, 5.13%,
12/1/11, (Callable 12/1/05 @ 102) 1,500 1,533
Franklin County Development Revenue,
5.50%, 10/1/12,
(Callable 10/1/09 @ 101) 2,270 2,414
Franklin County, Online Computer
Library Center, 5.00%, 4/15/10 2,270 2,362
Franklin County, Trinity Health,
5.00%, 6/1/13 475 506
CONTINUED
87
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Greater Cleveland Regional Transit
Authority, 5.38%, 12/1/11,
(Callable 12/1/08 @ 101) $ 1,455 $ 1,549
Hamilton County Hospital Facilities
Revenue, 5.20%, 12/1/13,
(Callable 12/1/07 @ 101) 1,000 1,044
Hamilton County Hospital Facilities
Revenue, Children's Hospital Medical
Center, 3.02%, 5/15/28 (d) 500 500
Hamilton County Hospital Facilities
Revenue, Cincinnati Children's
Hospital, Series J, 4.50%, 5/15/14 1,510 1,577
Hamilton County Hospital Facilities,
Revenue, 5.25%, 5/15/11,
(Callable 11/15/08 @ 101) 2,670 2,835
Higher Education, Capital Facilities
Revenue, Series II-A, 5.50%, 12/1/07 2,695 2,793
Higher Education, Case Western Reserve,
6.25%, 7/1/14 6,500 7,580
Higher Education, Dennison University
Project, 5.50%, 11/1/12,
(Callable 11/1/11@ 101) 1,000 1,102
Higher Education, John Carroll
University, 5.25%, 11/15/14,
(Callable 11/15/13 @ 100) 1,435 1,543
Higher Education, John Carroll
University, 5.25%, 11/15/15,
(Callable 11/15/13 @ 100) 1,490 1,601
Higher Educational Facilities Revenue,
Ohio Northern University Project,
3.50%, 5/1/10 475 471
Hilliard School District, 5.50%, 12/1/08 2,780 2,934
Housing Authority, 4.63%, 9/1/31,
(Callable 1/1/11 @ 100) 1,405 1,414
Housing Finance Agency, (AMT),
3.95%, 9/1/08 340 342
Housing Finance Agency, (AMT),
4.15%, 9/1/09 580 577
Housing Finance Agency, (AMT),
4.35%, 9/1/10 220 219
Housing Finance Agency, (AMT),
3.65%, 9/1/11 755 728
Housing Finance Agency, (AMT),
4.55%, 9/1/11 220 222
Housing Finance Agency, (AMT),
3.30%, 9/1/30 1,120 1,105
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 1,174
Knox County Hospital Facilities
Revenue, 5.00%, 6/1/12 6,250 6,593
Lucas County, 6.65%, 12/1/12 130 131
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Mental Health Capital Facilities,
Series II-A, 5.00%, 6/1/13 $ 2,135 $ 2,295
Montgomery County Catholic Health
Initiatives, Series A, 6.00%, 12/1/26 2,750 3,017
Montgomery County Solid Waste
Revenue, 5.40%, 11/1/08,
(Callable 11/1/05 @ 102) 3,000 3,068
Municipal Electric Generation Agency,
Refunding, Joint Venture, 5-CTFS
Ben Int, 5.00%, 2/15/14 2,675 2,892
North Olmstead, 6.20%, 12/1/11 3,000 3,406
Ohio State Univeristy General Receipts,
Series B, 5.25%, 6/1/18 5,880 6,374
Sidney Construction, 4.90%, 11/1/07 425 428
State Schools, 5.00%, 6/15/13 1,000 1,082
State Solid Waste Revenue, Ohio Water
Development Authority, (AMT),
4.85%, 11/1/22 3,000 3,042
State Solid Waste Revenue, Republic
Services Project, (AMT), 4.25%, 4/1/33 3,470 3,390
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvement Project,
5.00%, 12/1/09 1,110 1,134
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvements Project,
5.00%, 12/1/08 1,155 1,184
University of Cincinnati, 5.50%, 6/1/09 2,000 2,134
University of Cincinnati, 5.00%, 6/1/10 300 319
Water Development Authority, Pollution
Control Facilities Revenue, 5.25%,
12/1/08, (Callable 12/1/07 @ 101) 1,000 1,044
----------
116,998
----------
PUERTO RICO (3.3%)
Commonwealth, Refunding Series A,
5.00%, 7/1/30 3,000 3,128
Public Buildings Authority Revenue,
Refunding, Government Facilities,
Series K, 4.50%, 7/1/22 1,000 1,009
----------
4,137
----------
TOTAL MUNICIPAL BONDS 121,135
----------
MONEY MARKETS (0.2%)
Goldman Sachs Financial Tax Free
Money Market Fund 244,015 244
----------
TOTAL MONEY MARKETS 244
----------
TOTAL INVESTMENTS (COST $118,515) + - 98.1% 121,379
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.9% 2,299
----------
NET ASSETS - 100.0% $ 123,678
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
88
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS (97.3%)
MICHIGAN (95.7%)
Ann Arbor Water Supply Systems, 5.00%, 2/1/10 $ 880 $ 932
Avondale School District, UTGO, 5.00%, 5/1/10 800 846
Birmingham City School District, 5.00%, 11/1/10 1,905 2,025
Building Authority Revenue, 5.00%, 10/15/29 1,000 1,063
Central Michigan University, 5.00%, 10/1/09 1,605 1,693
Certificate of Participation, Series A,
5.00%, 9/1/31 1,000 1,058
Clarkston Schools, 4.00%, 5/1/12 200 203
Comprehensive Transportation,
Series A, 5.25%, 5/15/09 3,000 3,176
Detroit Convention Facilities, 5.00%, 9/30/08 2,000 2,083
Dexter Community School District,
GO, 6.25%, 5/1/07 1,730 1,792
Ferndale, UTGO, 4.50%, 4/1/10 1,190 1,239
Forest Hills Public Schools, GO,
5.25%, 5/1/09 2,785 2,936
Frankenmuth School District, UTGO,
5.50%, 5/1/06 125 126
Grand Rapids & Kent County Joint
Building Authority, GO, 5.50%, 10/1/09 605 648
Grand Rapids & Kent County Joint
Building Authority, UTGO, 5.50%, 10/1/07 535 554
Higher Education Facilities Authority
Revenue, Hope College Project,
4.60%, 10/1/08 320 328
Higher Education Facilities Authority
Revenue, Kalamazoo College Project,
5.25%, 12/1/06 725 736
Higher Education Facility Authority -
Thomas M. Cooley Law School,
4.75%, 5/1/07 1,265 1,279
Higher Education Student Loan Authority
Revenue, (AMT), 5.00%, 3/1/07 2,525 2,552
Higher Education Student Loan Authority
Revenue, Series XII-W, (AMT),
4.60%, 9/1/08 1,000 1,026
Higher Education Student Loan Authority
Revenue, Series XII-W, (AMT),
4.75%, 3/1/09 200 207
Higher Education Student Loan Authority
Revenue, Series XVII-I (AMT),
3.65%, 3/1/10 1,000 993
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
3.50%, 3/1/06 200 200
CONTINUED
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
3.85%, 3/1/07 $ 200 $ 200
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
4.15%, 3/1/08 300 302
Hospital Financial Authority Revenue,
McLaren Health Care, Series C,
4.00%, 8/1/08 405 407
Hospital Financial Authority Revenue,
Sparrow Obligation Group,
5.00%, 11/15/06 735 741
Housing Development Authority,
(AMT), Series B, 3.55%, 12/1/06 175 175
Housing Development Authority,
(AMT), Series B, 3.85%, 12/1/07 215 214
Housing Development Authority,
(AMT), Series B, 4.13%, 12/1/08 305 306
Housing Development Authority,
(AMT), Series B, 4.35%, 12/1/09 355 354
Housing Development Authority,
(AMT), Series B, 4.55%, 12/1/10 455 456
Housing Development Authority,
(AMT), Series B, 4.65%, 12/1/11 485 493
Housing Development Authority,
Parkway Meadows Project, 3.50%, 10/15/08 930 930
Housing Development Authority,
Parkway Meadows Project, 3.50%, 10/15/09 710 714
Jackson County Economic Development
Corp., Limited Obligation Revenue,
Vista Grande Villa, Series A,
3.07%, 11/1/31 (d) 200 200
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.50%, 5/15/08 750 783
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.00%, 10/15/08 500 520
Kent, Hospital Finance Authority
Revenue, Spectrum Health,
5.25%, 1/15/08 430 444
Kent, Hospital Financial Authority
Revenue, Spectrum Health, Series B,
5.00%, 7/15/11 600 634
Municipal Bond Authority Revenue,
Series A, 5.25%, 12/1/07 1,000 1,033
Municipal Building Authority Revenue,
Government Loan Program, Series C,
5.00%, 5/1/10 1,000 1,061
CONTINUED
89
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/08 $ 1,000 $ 1,033
Novi Community School District,
Building & Site Improvements,
5.00%, 10/1/08 2,320 2,418
South Macomb Disposal Authority
Revenue, 5.00%, 9/1/08 1,115 1,160
State Hospital Finance Authority
Revenue, Holland Community
Hospital, 4.15%, 1/1/12 450 454
State Hospital Financial Authority
Revenue, General Hospital
Obligations Group, 5.00%, 5/15/10 905 940
State Housing Development Authority,
Multi-Family Revenue, 3.55%, 4/20/08 395 393
State Strategic Fund Solidwaste
Disposal Revenue, 4.63%, 12/1/12 250 253
Strategic Fund, Hope Network Project,
Series B, 4.75%, 9/1/07 615 624
Strategic Fund, Limited Obligation
Revenue, Consumers Energy
Company Project, 3.38%, 6/15/10 2,000 1,980
Strategic Fund, Limited Obligation
Revenue, Solid Waste Disposal,
3.15%, 12/1/13 1,000 1,000
Trunk Line, Series A, 5.50%, 11/1/07 1,025 1,063
Trunk Line, Series A, 5.25%, 11/1/09 1,000 1,061
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 2,000 2,083
University of Michigan Hospital
Revenue, 5.00%, 12/1/09 510 536
Warren Building Authority, 3.70%, 11/1/09 225 225
Wayne Charter, Airport Revenue,
Series D, 5.25%, 12/1/06 2,000 2,028
Wayne County Airport Authority, 5.00%, 12/1/09 1,000 1,044
Wayne County Community College, 5.25%, 7/1/09 1,000 1,059
Wayne-Westland Community Schools, 5.00%, 5/1/10 1,000 1,062
Wyandotte City School District, 4.00%, 5/1/13 810 824
Wyandotte, Electric Revenue, (AMT),
4.50%, 10/1/11 600 618
Wyandotte, Electric Revenue, (AMT),
5.00%, 10/1/12 600 632
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/06 245 246
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/07 255 255
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------ ----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/08 $ 270 $ 271
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/09 280 279
----------
61,203
----------
PUERTO RICO (1.6%)
Public Buildings Authority Revenue,
Refunding, Government Facilities,
Series K, 4.50%, 7/1/22 1,000 1,009
----------
TOTAL MUNICIPAL BONDS 62,212
----------
MONEY MARKETS (1.6%)
AIM Tax Free Money Market Fund 172 --#
Dreyfus Tax Exempt Money
Market Fund 365 --#
Goldman Sachs Financial Tax Free
Money Market Fund 1,325 1
Merrill Lynch Institutional
Tax Exempt Fund 1,048,069 1,048
----------
TOTAL MONEY MARKETS 1,049
----------
TOTAL INVESTMENTS (COST $63,487) + - 98.9% 63,261
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.1% 717
----------
NET ASSETS - 100.0% $ 63,978
==========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
90
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
* Non-income producing security.
** Rate represents the effective yield at purchase.
# Market value is less than five hundred dollars.
+ Represents cost for financial reporting purposes.
(a) Part of this security has been deposited as initial margin on open futures
contracts.
(b) Affiliate.
(c) Dollar value included in the security description indicated represents
expected per share annual dividend.
(d) Variable rate security. Rate presented represents rate in effect at
January 31, 2006. Maturity date represents actual maturity date.
(e) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
(f) All or part of this security has been deposited as collateral for TBA
security.
(g) All or part of this security was on loan at January 31, 2006.
(h) Investment is in Institutional Shares of underlying fund.
(i) Common Stock.
The following abbreviations are used in these Schedules of Portfolio
Investments:
ADR - American Depositary Receipt
AMT - Alternative Minimum Tax Paper
CBTCS - Convertible Bond Transferable Custodial Security
ETM - Escrowed to Maturity
GO - General Obligation
REITS - Real Estate Investment Trust
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/
FIFTH THIRD FUNDS PURPOSES APPRECIATION DEPRECIATION (DEPRECIATION)
--------------- ------------ ------------ -------------
Small Cap Growth Fund $ 174,377 $ 62,739 $ (765) $ 61,974
Mid Cap Growth Fund 395,808 120,345 (1,990) 118,355
Quality Growth Fund 789,033 156,031 (8,895) 147,136
Large Cap Core Fund 180,401 27,620 (5,204) 22,416
Equity Index Fund 245,002 236,219 (16,045) 220,174
Balanced Fund 118,006 5,641 (1,218) 4,423
Micro Cap Value Fund 122,765 43,324 (4,750) 38,574
Small Cap Value Fund 138,012 23,750 (1,403) 22,347
Multi Cap Value Fund 288,338 105,862 (3,586) 102,276
Disciplined Large Cap Value Fund 584,673 137,969 (11,964) 126,005
LifeModel Aggressive Fund SM 128,679 27,975 (310) 27,665
LifeModel Moderately Aggressive Fund SM 274,849 47,869 (1,816) 46,053
LifeModel Moderate Fund SM 443,562 45,275 (7,084) 38,191
LifeModel Moderately Conservative Fund SM 96,003 11,572 (1,841) 9,731
LifeModel Conservative Fund SM 56,061 3,045 (1,416) 1,629
Strategic Income Fund 161,124 8,858 (3,886) 4,972
Dividend Growth Fund 24,133 1,150 (445) 705
Technology Fund 67,915 4,975 (512) 4,463
International Equity Fund 421,555 99,771 (35,549) 64,222
High Yield Bond Fund 50,502 439 (174) 265
Bond Fund 351,301 709 (3,752) (3,043)
Intermediate Bond Fund 551,634 2,312 (13,450) (11,138)
Short Term Bond Fund 317,058 20 (9,290) (9,270)
U.S. Government Bond Fund 65,520 172 (952) (780)
Municipal Bond Fund 43,538 1,910 (60) 1,850
Intermediate Municipal Bond Fund 183,823 5,122 (871) 4,251
Ohio Municipal Bond Fund 118,320 3,483 (424) 3,059
Michigan Municipal Bond Fund 63,477 284 (500) (216)
SEE NOTES TO FINANCIAL STATEMENTS
91
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
Open futures contracts as of January 31, 2006
(Amounts in thousands except contract amount):
UNREALIZED
NUMBER OF NOTIONAL APPRECIATION/ MARKET
CONTRACTS CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE
--------- ------------------------------- -------- ------------- ---------
Large Cap Core Fund 19 Standard & Poor's 500, 03/12/06 $ 6,146 $ (49) $ 6,097
==== ========= ======== ========
Equity Index Fund 17 Standard & Poor's 500, 03/12/06 5,378 76 5,454
==== ========= ======== ========
International Equity Fund 27 DAX, 03/14/06 4,591 80 4,671
82 FSTE 100, 03/16/06 2,240 190 2,430
34 FTSE 100, 03/17/06 (3,401) (71) (3,472)
65 HANG SENG, 2/27/06 6,552 93 6,645
66 TOPIX, 03/09/06 8,750 883 9,633
---- --------- -------- --------
274 $ 18,732 $ 1,175 $ 19,907
==== ========= ======== ========
As of January 31, 2006, 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 $ 44,144 $ (147) $ 42,852 $ 45,361
Mid Cap Growth Fund 97,743 (207) 94,881 76,672
Quality Growth Fund 95,963 (86) 93,153 147,231
Large Cap Core Fund 14,384 (119) 13,963 18,377
Equity Index Fund 53,487 (124) 51,921 49,032
Balanced Fund 8,564 (79) 8,313 9,005
Micro Cap Value Fund 19,705 40 19,128 17,316
Small Cap Value Fund 19,918 65 19,335 27,330
Multi Cap Value Fund 45,760 (114) 44,420 45,694
Disciplined Large Cap Value Fund 110,337 (36) 107,106 71,894
Strategic Income Fund 9,417 46 9,142 8,563
Dividend Growth Fund 2,679 --^ 2,600 952
Technology Fund 17,174 144 16,672 12,536
International Equity Fund 24,287 (45) 23,576 17,324
Bond Fund 4,095 -- 3,976 12,242
Intermediate Bond Fund 26,838 2 26,052 22,613
Short Term Bond Fund 18,281 -- 17,746 23,820
SEE NOTES TO FINANCIAL STATEMENTS
92
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
The cash collateral from securities lending received by the Fifth Third Funds at
January 31, 2006, was pooled and invested in the following:
SECURITY TYPE SECURITY NAME VALUE RATE MATURITY DATE
- ------------------ -------------------------- -------- -------- -------------
Certificate of Deposit Bayersiche Landesbank NY $ 25,000 4.54% 2/26/07
Floating Rate Security American Express Bank 27,000 4.40% 3/16/06
Floating Rate Security Bank of New York Co., Inc. 40,000 4.39% 2/9/07
Floating Rate Security Canadian Imperial Bank NY 20,000 4.49% 2/23/07
Floating Rate Security General Electric Capital Corp. 7,705 4.52% 2/9/07
Floating Rate Security Goldman Sachs Group, Inc. 27,000 4.48% 1/12/07
Floating Rate Security HSBC Finance Corp. 35,000 4.51% 2/23/07
Floating Rate Security IBM Corp. 35,000 4.41% 2/8/07
Floating Rate Security Morgan Stanley 10,000 4.38% 2/5/07
Floating Rate Security Morgan Stanley 5,000 4.38% 2/5/07
Floating Rate Security Morgan Stanley 25,000 4.42% 2/2/07
Floating Rate Security Florida Heart Group 8,810 4.54% 4/1/14
Floating Rate Security Guiding Light Church 11,000 4.54% 3/1/25
Floating Rate Security AISF Global Finance 10,006 4.56% 12/11/06
Floating Rate Security General Electric Capital Corp. 6,000 4.46% 2/3/06
Floating Rate Security General Electric Capital Corp. 5,000 4.49% 2/6/06
Floating Rate Security Merrill Lynch & Co., Inc. 29,000 4.55% 3/17/06
Floating Rate Security Procter & Gamble Co. 25,000 4.43% 7/10/06
Floating Rate Security Wal-Mart 39,996 4.35% 3/16/06
Floating Rate Security Bear Stearns 25,000 4.62% 2/1/06
Repurchase Agreement Barclays Capital Markets 96,259 4.46% 2/1/06
Repurchase Agreement Deutsche Bank Securities, Inc. 100,000 4.45% 2/1/06
SEE NOTES TO FINANCIAL STATEMENTS
93
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
International Equity Fund Foreign Currency Contracts as of January 31, 2006:
CONTRACT CONTRACT CURRENT UNREALIZED
DELIVERY AMOUNT (LOCAL VALUE U.S. VALUE APPRECIATION/
DATE CURRENCY) DOLLAR U.S. DOLLAR (DEPRECIATION)
------- -------------- ---------- ----------- -------------
AUSTRALIAN DOLLAR
- -----------------------------------------
Short Contracts
2/17/06 8,795 $ 6,555 $ 6,664 $(109)
Long Contracts
2/17/06 8,795 6,398 6,666 268
EURO
- -----------------------------------------
Short Contracts
2/17/06 2,374 2,793 2,888 (95)
3/15/06 1,570 1,882 1,912 (30)
3/15/06 1,302 1,561 1,586 (25)
3/15/06 1,055 1,265 1,285 (20)
Long Contacts
2/17/06 17,262 20,230 20,993 763
2/17/06 5,556 6,601 6,757 156
3/15/06 1,961 2,353 2,388 35
3/15/06 833 999 1,014 15
BRISTISH POUND STERLING
- -----------------------------------------
Short Contracts
2/17/06 60 104 107 (3)
2/17/06 1,432 2,457 2,547 (90)
2/17/06 1,431 2,456 2,546 (90)
2/17/06 1,551 2,699 2,760 (61)
2/17/06 1,400 2,467 2,490 (23)
Long Contracts
2/17/06 4,806 8,331 8,550 219
2/17/06 5,609 9,703 9,977 274
2/17/06 3,397 6,025 6,042 17
HONG KONG DOLLAR
- -----------------------------------------
Short Contracts
2/17/06 53,049 6,837 6,841 (4)
2/17/06 6,954 897 897 --^
JAPANESE YEN
- -----------------------------------------
Short Contracts
2/17/06 546,233 4,630 4,667 (37)
2/17/06 1,091,972 9,259 9,329 (70)
2/17/06 1,334,885 11,174 11,404 (230)
2/17/06 358,782 3,000 3,065 (65)
2/17/06 190,781 1,600 1,630 (30)
3/15/06 1,066,989 8,980 9,145 (165)
3/15/06 1,547,623 13,034 13,265 (231)
3/15/06 861,123 7,252 7,381 (129)
3/15/06 602,397 5,070 5,163 (93)
3/15/06 191,744 1,655 1,643 12
2/17/06 694,454 6,054 5,933 121
2/17/06 50,894 442 435 7
Long Contracts
2/17/06 632,012 5,361 5,399 38
2/17/06 898,900 7,544 7,679 135
3/15/06 271,843 2,288 2,330 42
3/15/06 611,136 5,147 5,238 91
3/15/06 1,352,172 11,385 11,590 205
3/15/06 2,049,696 17,261 17,568 307
2/17/06 762,911 6,590 6,517 (73)
SINGAPORE DOLLAR
- -----------------------------------------
Short Contracts
2/17/06 4,343 2,558 2,679 (121)
2/17/06 10,103 6,025 6,233 (208)
Long Contacts
2/17/06 4,343 2,580 2,679 99
THAILAND BAHT
- -----------------------------------------
Long Contracts
2/1/06 8,170 210 210 --^
2/2/06 99 3 3 --^
2/3/06 21 1 1 --^
SOUTH AFRICAN RAND
- -----------------------------------------
Long Contracts
3/15/06 11,100 1,796 1,831 35
3/15/06 2,467 400 407 7
^ REPRESENTS FEWER THAN FIVE HUNDRED DOLLARS.
SEE NOTES TO FINANCIAL STATEMENTS
94
This page intentionally left blank.
95
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment concentrations for the Equity Funds as a percentage of net
assets, by industry, as of January 31, 2006, 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 1.0% -- -- 0.3% 0.2% 0.6% -- --
Aerospace/Defense -- -- 3.3% 3.4% 1.9% -- -- 1.5%
Agriculture -- -- -- 1.1% 1.6% -- -- --
Airlines -- -- -- -- 0.1% 0.3% -- --
Apparel -- 4.0% 2.2% 0.3% 0.4% 5.9% 2.3% 0.4%
Auto Manufacturers -- -- -- 0.4% 0.4% -- -- 0.6%
Auto Parts & Equipment 2.8% -- -- 0.8% 0.2% -- -- 0.8%
Banks 1.8% -- 3.6% 4.2% 6.2% 2.1% 3.5% 7.1%
Beverages -- -- 0.8% 2.2% 2.0% -- 1.8% 0.4%
Biotechnology -- -- 4.7% 0.7% 1.1% -- -- 0.8%
Building Materials -- -- -- -- 0.2% 2.8% -- 0.6%
Cash Equivalents 23.2% 23.7% 11.3% 7.6% 13.0% 13.8% 14.2% 13.3%
Chemicals -- -- -- 0.4% 1.3% 3.7% 7.0% 2.8%
Closed-end Funds -- -- -- -- -- -- -- --
Coal -- -- -- -- -- -- -- --
Commercial Services 3.1% 7.0% 5.4% 3.0% 0.8% 4.8% 4.2% 0.8%
Computers 2.4% 4.7% 2.9% 3.4% 4.0% 5.5% 0.9% 3.5%
Cosmetics/Personal Care -- -- 2.1% 1.0% 2.3% -- -- --
Distribution/Wholesale 3.4% 2.7% -- --^ 0.1% 0.4% --
Diversified Financial Services 1.5% 4.2% 3.6% 10.4% 7.9% -- 4.6% 8.7%
Electric 0.8% -- -- 3.6% 3.1% -- 4.5% 3.0%
Electrical Components & Equipment 2.4% -- 1.0% -- 0.3% 1.0% -- --
Electronics 2.8% 5.0% 1.2% 1.0% 0.6% 4.6% -- 2.3%
Engineering & Construction 0.7% -- -- -- 0.1% 0.5% -- --
Entertainment 1.4% 1.5% -- -- 0.1% -- -- --
Environmental Control -- 1.0% -- -- 0.2% 1.4% -- --
Food 1.3% -- 1.3% 3.7% 1.6% 3.4% 6.4% 6.1%
Food Service -- -- -- -- -- -- -- --
Forest Products & Paper -- -- -- 0.1% 0.5% -- -- --
Gas -- -- -- -- 0.2% 0.5% 1.5% --
Hand/Machine Tools -- -- -- -- 0.1% -- -- 1.4%
Healthcare-Products 10.7% 7.9% 4.5% 3.1% 3.3% 3.4% 2.5% --
Healthcare-Services 5.0% 4.1% 2.6% 1.5% 1.9% 1.5% 2.4% 3.5%
Holding Companies-Diversified -- -- -- 0.8% -- -- -- --
Home Builders 0.9% 2.1% -- -- 0.4% -- -- --
Home Furnishings -- -- -- -- 0.2% 1.6% -- 1.0%
Household Products/Wares 1.0% -- -- -- 0.2% 2.2% 2.3% 1.0%
Housewares -- -- -- 0.7% 0.1% -- -- --
Insurance 1.5% 2.2% 2.0% 7.7% 4.9% 5.0% 7.8% 7.1%
Internet 6.3% 2.6% 0.9% 0.1% 1.2% 4.3% -- --
Investment Companies 4.3% 1.8% --^ 2.9% 1.3% 3.7% 6.1% 1.6%
Iron/Steel 1.7% 1.5% -- 0.6% 0.2% 2.7% -- 0.8%
Leisure Time -- -- -- 0.1% 0.4% 0.7% -- 0.4%
Lodging -- 4.6% 5.6% -- 0.4% -- -- --
Machinery-Construction & Mining 1.7% 4.8% -- 0.7% 0.4% -- -- --
Machinery-Diversified 0.8% -- 2.5% 0.4% 0.4% 0.4% 2.0% 2.6%
Media -- -- -- 2.2% 3.1% -- -- 1.8%
Metal Fabricate/Hardware -- 1.2% -- -- -- 0.9% -- --
Mining -- -- -- 1.0% 0.7% 1.5% 2.7% 0.9%
Miscellaneous Manufacturing 0.1% 0.9% 3.8% 2.9% 5.0% 2.2% 1.3% 4.0%
Office Furnishings -- -- -- -- -- -- -- --
Office/Business Equipment -- -- -- -- 0.2% -- -- --
Oil & Gas 3.4% 9.1% 1.2% 8.4% 8.3% -- 1.1% 9.5%
Oil & Gas Services 6.9% 2.4% 0.7% 0.6% 1.6% 3.1% 6.2% 3.2%
Packaging & Containers -- -- -- -- 0.1% -- -- --
Pharmaceuticals 4.3% 2.0% 6.7% 6.5% 6.1% 3.3% -- 4.0%
Pipelines -- -- -- -- 0.3% -- -- --
Real Estate -- -- -- -- -- -- -- --
REITS -- -- -- -- 0.7% 3.0% 0.5% --
Retail 8.9% 5.4% 11.6% 6.5% 5.8% 6.6% 12.0% 5.4%
Savings & Loans -- -- -- -- 0.6% 1.9% 1.0% 0.5%
Semiconductors 5.6% 8.5% 7.9% 3.5% 3.1% 1.5% 4.0% 2.0%
Shipbuilding -- -- -- -- -- -- -- --
Software 5.0% 4.3% 7.4% 3.4% 4.0% 1.3% 1.3% --
Sovereign -- -- -- -- -- -- -- --
Storage/Warehousing -- -- -- -- -- -- -- --
Telecommunications 4.3% 4.4% 8.5% 3.4% 5.9% 5.1% 3.6% 5.6%
Textiles -- -- 1.0% -- 0.1% 0.3% -- --
Toys/Games/Hobbies 1.2% -- -- 0.4% 0.1% -- -- 0.6%
Transportation 1.9% 1.2% -- 2.1% 1.7% 5.1% 6.6% 3.7%
Trucking & Leasing -- -- -- -- --^ -- -- --
Water -- -- -- -- -- -- -- --
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED LIFEMODEL LIFEMODEL
LARGE CAP LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL
VALUE AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUND FUND SM FUND SM FUND SM FUND SM FUND SM
---------- ---------- ----------- ---------- ------------- -------------
Advertising -- -- -- -- -- --
Aerospace/Defense 3.4% -- -- -- -- --
Agriculture -- -- -- -- -- --
Airlines -- -- -- -- -- --
Apparel -- -- -- -- -- --
Auto Manufacturers 2.2% -- -- -- -- --
Auto Parts & Equipment -- -- -- -- -- --
Banks 11.5% -- -- -- -- --
Beverages 2.3% -- -- -- -- --
Biotechnology -- -- -- -- -- --
Building Materials 0.9% -- -- -- -- --
Cash Equivalents 18.4% -- -- -- -- --
Chemicals 4.2% -- -- -- -- --
Closed-end Funds -- -- -- -- -- --
Coal -- -- -- -- -- --
Commercial Services 1.3% -- -- -- -- --
Computers 3.2% -- -- -- -- --
Cosmetics/Personal Care -- -- -- -- -- --
Distribution/Wholesale -- -- -- -- -- --
Diversified Financial Services 7.1% -- -- -- -- --
Electric 3.8% -- -- -- -- --
Electrical Components & Equipment -- -- -- -- -- --
Electronics 1.7% -- -- -- -- --
Engineering & Construction -- -- -- -- -- --
Entertainment -- -- -- -- -- --
Environmental Control -- -- -- -- -- --
Food 7.1% -- -- -- -- --
Food Service -- -- -- -- -- --
Forest Products & Paper -- -- -- -- -- --
Gas -- -- -- -- -- --
Hand/Machine Tools 0.7% -- -- -- -- --
Healthcare-Products -- -- -- -- -- --
Healthcare-Services 1.6% -- -- -- -- --
Holding Companies-Diversified -- -- -- -- -- --
Home Builders -- -- -- -- -- --
Home Furnishings -- -- -- -- -- --
Household Products/Wares -- -- -- -- -- --
Housewares -- -- -- -- -- --
Insurance 8.3% -- -- -- -- --
Internet -- -- -- -- -- --
Investment Companies 2.5% 100.3% 100.1% 100.0% 100.1% 100.3%
Iron/Steel -- -- -- -- -- --
Leisure Time 1.6% -- -- -- -- --
Lodging -- -- -- -- -- --
Machinery-Construction & Mining 1.5% -- -- -- -- --
Machinery-Diversified 1.1% -- -- -- -- --
Media 2.9% -- -- -- -- --
Metal Fabricate/Hardware -- -- -- -- -- --
Mining 0.7% -- -- -- -- --
Miscellaneous Manufacturing 1.8% -- -- -- -- --
Office Furnishings -- -- -- -- -- --
Office/Business Equipment -- -- -- -- -- --
Oil & Gas 14.2% -- -- -- -- --
Oil & Gas Services -- -- -- -- -- --
Packaging & Containers -- -- -- -- -- --
Pharmaceuticals 6.3% -- -- -- -- --
Pipelines -- -- -- -- -- --
Real Estate -- -- -- -- -- --
REITS -- -- -- -- -- --
Retail 2.5% -- -- -- -- --
Savings & Loans -- -- -- -- -- --
Semiconductors 0.9% -- -- -- -- --
Shipbuilding -- -- -- -- -- --
Software -- -- -- -- -- --
Sovereign -- -- -- -- -- --
Storage/Warehousing -- -- -- -- -- --
Telecommunications 4.6% -- -- -- -- --
Textiles -- -- -- -- -- --
Toys/Games/Hobbies -- -- -- -- -- --
Transportation -- -- -- -- -- --
Trucking & Leasing -- -- -- -- -- --
Water -- -- -- -- -- --
DIVIDEND INTERNATIONAL
GROWTH TECHNOLOGY EQUITY
FUND FUND FUND
----------- ---------- --------------
Advertising -- 1.4% 0.1%
Aerospace/Defense 5.8% -- 0.5%
Agriculture 1.8% -- 0.7%
Airlines -- -- 0.1%
Apparel 1.1% -- 0.1%
Auto Manufacturers -- -- 3.3%
Auto Parts & Equipment 2.0% -- 0.6%
Banks 11.4% -- 17.0%
Beverages 5.9% -- 1.1%
Biotechnology -- 7.4% --^
Building Materials -- -- 1.6%
Cash Equivalents 12.0% 31.4% 8.9%
Chemicals 5.0% -- 2.2%
Closed-end Funds -- -- 0.1%
Coal -- -- --^
Commercial Services 0.6% 6.8% 0.7%
Computers 1.0% 5.8% 0.5%
Cosmetics/Personal Care 4.4% -- 0.6%
Distribution/Wholesale -- -- 1.2%
Diversified Financial Services 4.9% -- 2.1%
Electric -- -- 2.8%
Electrical Components & Equipment 2.7% 3.2% 1.2%
Electronics -- 1.8% 2.0%
Engineering & Construction -- -- 1.3%
Entertainment -- -- 0.3%
Environmental Control -- -- --^
Food 3.9% -- 3.2%
Food Service -- -- 0.1%
Forest Products & Paper -- -- 0.4%
Gas -- -- 0.5%
Hand/Machine Tools -- -- 0.5%
Healthcare-Products 10.6% 2.2% 0.6%
Healthcare-Services -- -- --^
Holding Companies-Diversified -- -- 0.8%
Home Builders -- -- 0.4%
Home Furnishings -- -- 0.9%
Household Products/Wares -- -- 0.3%
Housewares -- -- --^
Insurance 2.3% -- 4.4%
Internet -- 7.0% 0.6%
Investment Companies 0.7% 1.2% 3.7%
Iron/Steel -- -- 1.0%
Leisure Time 1.0% -- 0.1%
Lodging 2.0% -- 0.3%
Machinery-Construction & Mining -- -- 0.3%
Machinery-Diversified 1.4% 2.7% 0.5%
Media 1.0% -- 1.0%
Metal Fabricate/Hardware -- -- 0.2%
Mining -- -- 2.9%
Miscellaneous Manufacturing 4.8% 3.7% 1.7%
Office Furnishings -- -- --^
Office/Business Equipment -- -- 0.7%
Oil & Gas 8.1% -- 9.2%
Oil & Gas Services 1.2% -- --
Packaging & Containers -- -- 0.1%
Pharmaceuticals 3.6% 2.7% 6.2%
Pipelines -- -- --
Real Estate -- -- 2.3%
REITS -- -- 0.1%
Retail 3.3% -- 2.3%
Savings & Loans -- -- --
Semiconductors 2.4% 26.6% 0.5%
Shipbuilding -- -- --^
Software 3.4% 22.9% 0.7%
Sovereign -- -- 0.3%
Storage/Warehousing -- -- --^
Telecommunications 1.7% 5.4% 6.2%
Textiles -- -- 0.3%
Toys/Games/Hobbies -- -- 0.2%
Transportation 1.3% -- 1.6%
Trucking & Leasing -- -- --
Water -- -- 0.3%
___________________________________
^ Amount is less than 0.05%.
SEE NOTES TO FINANCIAL STATEMENTS
96-97 Speard
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment concentrations for the Balanced Fund and Strategic Income Fund as
a percentage of net assets, by industry, as of January 31, 2006, were as
follows:
STRATEGIC
BALANCED INCOME
FUND FUND
--------- ---------
Aerospace/Defense 0.2% --
Agriculture 0.7% 0.7%
Auto Manufacturers 2.6% --
Auto Parts & Equipment 1.0% --
Automobile ABS 4.1% --
Banks 3.6% 17.4%
Beverages 0.9% 0.1%
Cash Equivalents 7.9% 6.0%
Chemicals 1.3% --
Closed-end Funds -- 9.6%
Coal 1.2% --
Commercial MBS 7.6% --
Commercial Services 0.6% --
Computers 0.2% --
Cosmetics/Personal Care 1.3% 0.4%
Credit Card ABS -- 0.3%
Diversified Financial Services 3.8% 22.1%
Electric 2.8% 5.8%
Electrical Components & Equipment 0.7% --
Electronics 0.6% --
Engineering & Construction 0.8% --
FGLMC Collateral 1.1% --
FNMA Collateral 1.3% --
Food 1.6% 1.2%
Forest Products & Paper -- 1.1%
Hand / Machine Tools 1.6% --
Healthcare-Products 3.9% --
Healthcare-Services 1.9% --
Holding Companies-Diversified -- 0.7%
Insurance 2.1% 6.7%
Investment Companies 6.0% 1.5%
Machinery-Construction & Mining 1.3% --
Machinery-Diversified 2.2% --
Media 0.8% 1.1%
Miscellaneous Manufacturing 0.7% 0.2%
Oil & Gas 3.6% 1.0%
Oil & Gas Services 3.6% --
Other ABS 0.4% --
Pharmaceuticals 2.0% --
Pipelines 0.2% 0.6%
Regional(state/provnc) -- 0.6%
REITS -- 16.2%
Retail 4.0% 0.6%
Savings & Loans -- 0.5%
Semiconductors 2.1% --
Software 2.1% --
Sovereign 12.7% 6.1%
Telecommunications 2.1% 1.5%
Transportation 2.0% 0.3%
WL Collateral CMO 11.4% 3.7%
The investment concentrations for the Municipal Bond Funds as a percentage of
net assets, by industry, as of January 31, 2006, were as follows:
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
FUND FUND FUND FUND
--------- ------------ --------- ---------
Airport 7.2% 7.0% -- 4.8%
Cash Equivalents 0.6% 0.1% 0.2% 1.6%
Development 5.2% 6.4% 2.8% 3.4%
Education 4.2% 1.3% 2.3% --
Facilities 2.4% 3.0% 6.4% 8.4%
General 7.0% 5.0% 4.9% 4.9%
General Obligation 6.8% 14.3% 13.9% 7.7%
Higher Education 13.6% 2.9% 17.1% 8.0%
Housing 3.1% 4.3% 3.4% 2.6%
Medical 10.3% 11.1% 18.0% 13.9%
Multifamily Housing -- 0.3% -- 0.6%
Pollution 0.5% 0.9% 8.5% 3.8%
Power -- 5.4% 8.0% 2.0%
School District 21.7% 15.8% 7.7% 15.2%
Single Family Housing 2.7% 5.4% 1.1% 3.1%
Student Loan 2.2% 6.6% -- 7.5%
Transportation 4.6% 7.2% 3.8% 8.3%
Utilities 0.6% 2.2% -- --
Water 5.9% 1.8% -- 3.1%
SEE NOTES TO FINANCIAL STATEMENTS
98
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment concentrations for the Bond Funds as a percentage of net assets,
by industry, as of January 31, 2006, were as follows:
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT
HIGH YIELD BOND BOND BOND BOND
BOND FUND FUND FUND FUND FUND
---------- -------- ------------ ---------- ----------
Aerospace/Defense 0.5% -- -- -- --
Agency Collateral CMO -- -- -- 1.1% 1.5%
Agency Collateral PAC CMO -- -- -- 3.7% --
Agency Collateral Supp CMO -- -- -- -- 3.2%
Auto Manufacturers 1.7% 2.8% -- 0.5% --
Automobile ABS -- 7.1% 4.1% 9.1% --
Banks -- 7.5% 8.3% 1.1% --
Beverages -- -- 0.2% -- --
Building Materials 1.4% -- -- -- --
Cash Equivalents -- 1.4% 5.2% 6.3% --
Chemicals 1.4% -- --^ -- --
Coal 4.7% -- -- -- --
Commercial MBS -- 17.4% 14.3% 9.5% --
Commercial Services 4.6% 0.7% 0.2% -- --
Computers 1.5% -- -- 1.0% --
Credit Card ABS -- -- 1.0% 0.3% --
Development -- -- -- 0.3% --
Diversified Financial Services 20.2% 1.3% 9.1% 8.3% --
Electric 8.3% 1.1% 2.7% 0.8% --
Environmental Control 1.5% -- -- -- --
FGLMC Collateral -- 1.1% -- -- --
FNMA Collateral -- 3.0% -- -- --
Food 3.9% 1.9% -- 0.7% --
Forest Products & paper 2.9% -- -- -- --
Home Builders 3.3% -- -- -- --
Gas -- -- 1.0% 1.1% --
Healthcare-Services -- -- -- 1.2% --
Holding Companies-Diversified -- -- -- 1.4% --
Home Equity ABS -- -- 1.8% 1.4% --
Household Products/Wares 1.5% -- 0.2% -- --
Insurance -- 0.0% 1.4% 0.5% --
Investment Companies 2.1% 1.5% 0.7% 3.0% 5.3%
Iron/Steel 3.1% -- -- -- --
Leisure Time 1.5% -- -- -- --
Lodging 1.5% -- -- -- --
Machinery - Diversified 1.6% -- -- -- --
Media 7.3% 1.1% 0.7% 2.3% --
Mining 1.1% -- 0.2% -- --
Miscellaneous Manufacturing 1.5% -- -- -- --
Office Furnishings 1.5% -- -- -- --
Oil & Gas 4.7% 1.0% 1.3% 0.3% --
Other ABS -- 2.4% 4.5% 2.4% 6.2%
Packaging & Containers 1.6% -- -- -- --
Pharmaceuticals 1.5% -- -- -- --
Pipelines 2.3% 0.3% 0.7% 0.6% --
REITS -- 0.5% 0.6% 1.4% --
Retail 3.4% 0.5% -- -- --
Savings & Loans -- 1.4% -- -- --
Sovereign -- 42.6% 20.6% 26.8% 93.4%
Telecommunications 4.6% 1.2% -- 1.4% --
Transportation 1.1% --^ 0.2% -- --
WL Collateral CMO 2.9% 24.0% 25.4% 18.1% --
SEE NOTES TO FINANCIAL STATEMENTS
99
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP
GROWTH GROWTH GROWTH CORE
FUND FUND FUND FUND
--------- --------- --------- ---------
ASSETS:
Investments,at cost $ 165,778 $ 392,504 $ 782,067 $ 174,686
Net unrealized appreciation 62,294 118,696 154,022 22,871
--------- --------- --------- ---------
Investments,at value 228,072 511,200 936,089 197,557
Investment in affiliates,at value (cost $8,279,$2,963,$80,$5,260,
$5,496,$6,554,$3,744,$8,592,$5,656,$15,312,$--;respectively) 8,279 2,963 80 5,260
--------- --------- --------- ---------
Total Investments 236,351 514,163 936,169 202,817
Cash -- -- -- ^ 381
Interest,dividends and other receivables 34 60 211 128
Receivable for investments sold 2,100 -- 14,107 648
Receivable for Fund shares sold 2 24 14 -- ^
Receivable from Advisor and affiliates -- -- -- 3
Prepaid expenses and other assets 25 35 49 25
--------- --------- --------- ---------
Total Assets 238,512 514,282 950,550 204,002
--------- --------- --------- ---------
LIABILITIES:
Payable for investments purchased 3,671 4,088 4,765 --
Payable for securities loaned 44,144 97,743 95,963 14,384
Payable for Fund shares redeemed 69 11 294 58
Payable for variation margin on futures contracts -- -- -- 21
Accrued expenses and other payables:
Payable to Advisor and affiliates 115 285 605 119
Distribution and administrative services fees 7 16 49 6
Other 65 51 159 28
--------- --------- --------- ---------
Total Liabilities 48,071 102,194 101,835 14,616
--------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 120,248 262,808 743,186 205,280
Accumulated net investment income/(loss) (830) (733) (1,157) 2
Accumulated net realized gain/(loss) from investment
transactions and futures 8,729 31,317 (47,336) (38,718)
Net unrealized appreciation on investments and futures 62,294 118,696 154,022 22,822
--------- --------- --------- ---------
Net Assets $ 190,441 $ 412,088 $ 848,715 $ 189,386
========= ========= ========= =========
Market value of securities loaned $ 42,852 $ 94,881 $ 93,153 $ 13,963
========= ========= ========= =========
Net Assets:
Institutional Shares $ 165,742 $ 361,089 $ 682,632 $ 165,241
Class A Shares 21,457 41,224 143,131 22,929
Class B Shares 1,780 7,219 16,253 1,029
Class C Shares 584 1,492 4,188 184
Advisor Shares 878 1,064 2,511 3
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- ---------
Total $ 190,441 $ 412,088 $ 848,715 $ 189,386
========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 10,893 20,397 39,887 10,963
Class A Shares 1,455 2,381 8,524 1,541
Class B Shares 124 434 1,005 70
Class C Shares 41 93 266 11
Advisor Shares 60 62 152 -- ^
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- ---------
Total 12,573 23,367 49,834 12,585
========= ========= ========= =========
Net Asset Value
Institutional Shares $ 15.22 $ 17.70 $ 17.11 $ 15.07
========= ========= ========= =========
Class A Shares-redemption price per share $ 14.75 $ 17.31 $ 16.79 $ 14.87
========= ========= ========= =========
Class B Shares-offering price per share* $ 14.33 $ 16.66 $ 16.18 $ 14.90
========= ========= ========= =========
Class C Shares-offering price per share* $ 14.35 $ 16.06 $ 15.76 $ 14.91
========= ========= ========= =========
Advisor Shares-redemption price per share $ 14.77 $ 17.15 $ 16.63 $ 15.07
========= ========= ========= =========
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%
Advisor Shares 3.25% 3.25% 3.25% 3.25%
Maximum Offering Price (100%/(100%-Maximum sales charge) of net
asset value adjusted to the nearest cent) per share
Class A Shares $ 15.53 $ 18.22 $ 17.67 $ 15.65
========= ========= ========= =========
Advisor Shares $ 15.27 $ 17.73 $ 17.19 $ 15.58
========= ========= ========= =========
EQUITY MICRO CAP SMALL CAP
INDEX BALANCED VALUE VALUE
FUND FUND FUND FUND
--------- --------- --------- ---------
ASSETS:
Investments,at cost $ 234,510 $ 111,076 $ 118,928 $ 129,408
Net unrealized appreciation 225,170 4,799 38,667 22,359
--------- --------- --------- ---------
Investments,at value 459,680 115,875 157,595 151,767
Investment in affiliates,at value (cost $8,279,$2,963,$80,$5,260,
$5,496,$6,554,$3,744,$8,592,$5,656,$15,312,$--;respectively) 5,496 6,554 3,744 8,592
--------- --------- --------- ---------
Total Investments 465,176 122,429 161,339 160,359
Cash -- -- -- --
Interest,dividends and other receivables 376 266 20 48
Receivable for investments sold -- 5,186 1,968 2,310
Receivable for Fund shares sold 11 10 21 -- ^
Receivable from Advisor and affiliates 9 1 -- 6
Prepaid expenses and other assets 45 29 32 11
--------- --------- --------- ---------
Total Assets 465,617 127,921 163,380 162,734
--------- --------- --------- ---------
LIABILITIES:
Payable for investments purchased 732 10,434 -- 2,327
Payable for securities loaned 53,487 8,564 19,705 19,918
Payable for Fund shares redeemed 140 56 218 3
Payable for variation margin on futures contracts 22 -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 43 60 123 108
Distribution and administrative services fees 48 21 23 3
Other 88 44 47 18
--------- --------- --------- ---------
Total Liabilities 54,560 19,179 20,116 22,377
--------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 233,197 148,331 94,041 113,825
Accumulated net investment income/(loss) 401 222 (521) 5
Accumulated net realized gain/(loss) from investment
transactions and futures (47,787) (44,610) 11,077 4,168
Net unrealized appreciation on investments and futures 225,246 4,799 38,667 22,359
--------- --------- --------- ---------
Net Assets $ 411,057 $ 108,742 $ 143,264 $ 140,357
========= ========= ========= =========
Market value of securities loaned $ 51,921 $ 8,313 $ 19,128 $ 19,335
========= ========= ========= =========
Net Assets:
Institutional Shares $ 166,799 $ 48,213 $ 88,908 $ 133,920
Class A Shares 70,708 47,643 20,506 2,815
Class B Shares 4,601 9,356 7,486 1,308
Class C Shares 2,354 3,389 5,910 908
Advisor Shares 1,510 141 20,454 1,406
Select Shares 17,515 NA NA NA
Preferred Shares 74,982 NA NA NA
Trust Shares 72,588 NA NA NA
--------- --------- --------- ---------
Total $ 411,057 $ 108,742 $ 143,264 $ 140,357
========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 6,861 3,748 10,290 6,177
Class A Shares 2,919 3,726 2,448 131
Class B Shares 191 741 923 62
Class C Shares 98 268 730 44
Advisor Shares 63 11 2,466 66
Select Shares 721 NA NA NA
Preferred Shares 3,085 NA NA NA
Trust Shares 2,987 NA NA NA
--------- --------- --------- ---------
Total 16,925 8,494 16,857 6,480
========= ========= ========= =========
Net Asset Value
Institutional Shares $ 24.31 $ 12.86 $ 8.64 $ 21.68
========= ========= ========= =========
Class A Shares-redemption price per share $ 24.23 $ 12.79 $ 8.38 $ 21.55
========= ========= ========= =========
Class B Shares-offering price per share* $ 24.08 $ 12.64 $ 8.10 $ 21.05
========= ========= ========= =========
Class C Shares-offering price per share* $ 24.09 $ 12.62 $ 8.10 $ 21.01
========= ========= ========= =========
Advisor Shares-redemption price per share $ 24.20 $ 12.76 $ 8.29 $ 21.39
========= ========= ========= =========
Select Shares $ 24.30 NA NA NA
========= ========= ========= =========
Preferred Shares $ 24.30 NA NA NA
========= ========= ========= =========
Trust Shares $ 24.30 NA NA NA
========= ========= ========= =========
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 5.00%
Advisor Shares 3.25% 3.25% 3.25% 3.25%
Maximum Offering Price (100%/(100%-Maximum sales charge) of net
asset value adjusted to the nearest cent) per share
Class A Shares $ 25.51 $ 13.46 $ 8.82 $ 22.68
========= ========= ========= =========
Advisor Shares $ 25.01 $ 13.19 $ 8.57 $ 22.11
========= ========= ========= =========
DISCIPLINED
MULTI CAP LARGE CAP LIFEMODEL
VALUE VALUE AGGRESSIVE
FUND FUND FUND SM
--------- ----------- ----------
ASSETS:
Investments,at cost $ 282,645 $ 567,461 $ 128,351
Net unrealized appreciation 102,313 127,905 27,993
--------- ----------- ----------
Investments,at value 384,958 695,366 156,344
Investment in affiliates,at value (cost $8,279,$2,963,$80,$5,260,
$5,496,$6,554,$3,744,$8,592,$5,656,$15,312,$--;respectively) 5,656 15,312 --
--------- ----------- ----------
Total Investments 390,614 710,678 156,344 #
Cash -- -- --
Interest,dividends and other receivables 354 823 5
Receivable for investments sold -- -- ^ --
Receivable for Fund shares sold 95 -- 20
Receivable from Advisor and affiliates -- -- 6
Prepaid expenses and other assets 28 43 14
--------- ----------- ----------
Total Assets 391,091 711,544 156,389
--------- ----------- ----------
LIABILITIES:
Payable for investments purchased -- -- --
Payable for securities loaned 45,760 110,337 --
Payable for Fund shares redeemed 152 15 417
Payable for variation margin on futures contracts -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 301 427 9
Distribution and administrative services fees 46 12 27
Other 49 62 19
--------- ----------- ----------
Total Liabilities 46,308 110,853 472
--------- ----------- ----------
NET ASSETS:
Paid-in Capital 225,918 464,880 123,407
Accumulated net investment income/(loss) 831 505 (10)
Accumulated net realized gain/(loss) from investment
transactions and futures 15,721 7,401 4,527
Net unrealized appreciation on investments and futures 102,313 127,905 27,993
--------- ----------- ----------
Net Assets $ 344,783 $ 600,691 $ 155,917
========= =========== ==========
Market value of securities loaned $ 44,420 $ 107,106 $ --
========= =========== ==========
Net Assets:
Institutional Shares $ 241,507 $ 568,709 $ 86,662
Class A Shares 40,469 23,796 49,821
Class B Shares 22,749 5,682 16,897
Class C Shares 4,581 2,337 2,432
Advisor Shares 35,477 167 105
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
--------- ----------- ----------
Total $ 344,783 $ 600,691 $ 155,917
========= =========== ==========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 9,486 40,414 5,825
Class A Shares 1,608 1,695 3,361
Class B Shares 931 401 1,161
Class C Shares 187 169 168
Advisor Shares 1,416 12 7
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
--------- ----------- ----------
Total 13,628 42,691 10,522
========= =========== ==========
Net Asset Value
Institutional Shares $ 25.47 $ 14.07 $ 14.87
========= =========== ==========
Class A Shares-redemption price per share $ 25.18 $ 14.04 $ 14.82
========= =========== ==========
Class B Shares-offering price per share* $ 24.41 $ 14.16 $ 14.55
========= =========== ==========
Class C Shares-offering price per share* $ 24.38 $ 13.92 $ 14.55
========= =========== ==========
Advisor Shares-redemption price per share $ 25.05 $ 14.02 $ 14.84
========= =========== ==========
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%
Advisor Shares 3.25% 3.25% 3.25%
Maximum Offering Price (100%/(100%-Maximum sales charge) of net
asset value adjusted to the nearest cent) per share
Class A Shares $ 26.51 $ 14.78 $ 15.60
========= =========== ==========
Advisor Shares $ 25.89 $ 14.49 $ 15.34
========= =========== ==========
__________________
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred dollars/shares.
# Represents investments in affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
100-101 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL
MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
FUND SM FUND SM FUND SM FUND SM
------------ ------------ ------------ ------------
ASSETS:
Investments,at cost $ 274,119 $ 442,076 $ 95,644 $ 55,715
Net unrealized appreciation/(depreciation) 46,783 39,677 10,090 1,975
------------ ------------ ------------ ------------
Investments,at value 320,902 481,753 105,734 57,690
Investment in affiliates,at value (cost $--,$--,$--,$--,
$1,066,$152,$649,$--,$1,075,$4,249,$3,817,
$8,875;respectively) -- -- -- --
------------ ------------ ------------ ------------
Total Investments 320,902 # 481,753 # 105,734 # 57,690 #
Cash -- -- -- --
Foreign currency,at value (cost $--,$--,$--,$--,$--,
$--,$--,$1,432,$--,$--,
$--,respectively) -- -- -- --
Interest,dividends and other receivables 9 10 7 1
Receivable for investments sold -- -- -- --
Receivable for Fund shares sold 105 133 1 2
Receivable for forward foreign currency contracts -- -- -- --
Reclaims receivable -- -- -- --
Receivable from Advisor and affiliates 12 17 5 3
Prepaid expenses and other assets 24 28 12 12
------------ ------------ ------------ ------------
Total Assets 321,052 481,941 105,759 57,708
------------ ------------ ------------ ------------
LIABILITIES:
Distributions payable -- -- -- --
Payable for investments purchased -- -- -- --
Payable for securities loaned -- -- -- --
Payable for Fund shares redeemed 290 183 46 128
Payable for forward foreign currency contracts -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 17 27 6 4
Distribution and administrative services fees 80 67 30 17
Other 40 51 19 13
------------ ------------ ------------ ------------
Total Liabilities 427 328 101 162
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in Capital 266,384 431,280 94,098 55,180
Accumulated net investment income/(loss) 214 772 192 149
Accumulated net realized gain/(loss) from investment
transactions,futures and foreign currency 7,244 9,884 1,278 242
Net unrealized appreciation/(depreciation) on
investments,futures and foreign currency 46,783 39,677 10,090 1,975
------------ ------------ ------------ ------------
Net Assets $ 320,625 $ 481,613 $ 105,658 $ 57,546
============ ============ ============ ============
Market value of securities loaned $ -- $ -- $ -- $ --
============ ============ ============ ============
Net Assets:
Institutional Shares $ 128,437 $ 322,826 $ 40,077 $ 23,889
Class A Shares 129,671 106,167 39,669 18,130
Class B Shares 52,798 44,747 22,208 11,373
Class C Shares 9,274 7,614 3,638 4,105
Advisor Shares 445 259 66 49
------------ ------------ ------------ ------------
Total $ 320,625 $ 481,613 $ 105,658 $ 57,546
============ ============ ============ ============
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 9,028 25,543 3,472 2,197
Class A Shares 9,131 8,412 3,442 1,672
Class B Shares 3,733 3,563 1,934 1,052
Class C Shares 655 606 316 379
Advisor Shares 31 21 6 4
------------ ------------ ------------ ------------
Total 22,578 38,145 9,170 5,304
============ ============ ============ ============
Net Asset Value
Institutional Shares $ 14.23 $ 12.64 $ 11.54 $ 10.87
============ ============ ============ ============
Class A Shares-redemption price per share $ 14.20 $ 12.62 $ 11.52 $ 10.85
============ ============ ============ ============
Class B Shares-offering price per share* $ 14.14 $ 12.56 $ 11.48 $ 10.82
============ ============ ============ ============
Class C Shares-offering price per share* $ 14.13 $ 12.57 $ 11.49 $ 10.83
============ ============ ============ ============
Advisor Shares-redemption price per share $ 14.21 $ 12.61 $ 11.52 $ 10.85
============ ============ ============ ============
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 5.00%
Advisor Shares 3.25% 3.25% 3.25% 3.25%
Maximum Offering Price (100%/(100%-Maximum sales
charge) of net asset value adjusted to the nearest
cent) per share
Class A Shares $ 14.95 $ 13.28 $ 12.13 $ 11.42
============ ============ ============ ============
Advisor Shares $ 14.69 $ 13.03 $ 11.91 $ 11.21
============ ============ ============ ============
STRATEGIC DIVIDEND INTERNATIONAL
INCOME GROWTH TECHNOLOGY EQUITY
FUND FUND (a) FUND FUND
------------ ------------ ------------ ------------
ASSETS:
Investments,at cost $ 159,958 $ 23,912 $ 66,884 $ 420,575
Net unrealized appreciation/(depreciation) 5,072 774 4,845 65,202
------------ ------------ ------------ ------------
Investments,at value 165,030 24,686 71,729 485,777
Investment in affiliates,at value (cost $--,$--,$--,$--,
$1,066,$152,$649,$--,$1,075,$4,249,$3,817,
$8,875;respectively) 1,066 152 649 --
------------ ------------ ------------ ------------
Total Investments 166,096 24,838 72,378 485,777
Cash -- -- -- 1,659
Foreign currency,at value (cost $--,$--,$--,$--,$--,
$--,$--,$1,432,$--,$--,
$--,respectively) -- -- -- 1,435
Interest,dividends and other receivables 836 11 2 257
Receivable for investments sold -- 115 4,998 237
Receivable for Fund shares sold 179 -- ^ 4 18
Receivable for forward foreign currency contracts -- -- -- 2,845
Reclaims receivable -- -- -- 93
Receivable from Advisor and affiliates -- 4 -- --
Prepaid expenses and other assets 20 170 22 35
------------ ------------ ------------ ------------
Total Assets 167,131 25,138 77,404 492,356
------------ ------------ ------------ ------------
LIABILITIES:
Distributions payable 561 -- -- --
Payable for investments purchased -- 113 5,405 423
Payable for securities loaned 9,417 2,679 17,174 24,287
Payable for Fund shares redeemed 180 14 15 40
Payable for forward foreign currency contracts -- -- -- 2,001
Accrued expenses and other payables:
Payable to Advisor and affiliates 139 13 47 399
Distribution and administrative services fees 33 2 3 13
Other 43 -- ^ 14 66
------------ ------------ ------------ ------------
Total Liabilities 10,373 2,821 22,658 27,229
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in Capital 151,388 36,601 92,649 429,600
Accumulated net investment income/(loss) 62 80 (307) (1,662)
Accumulated net realized gain/(loss) from investment
transactions,futures and foreign currency 236 (15,138) (42,441) (29,622)
Net unrealized appreciation/(depreciation) on
investments,futures and foreign currency 5,072 774 4,845 66,811
------------ ------------ ------------ ------------
Net Assets $ 156,758 $ 22,317 $ 54,746 $ 465,127
============ ============ ============ ============
Market value of securities loaned $ 9,142 $ 2,600 $ 16,672 $ 23,576
============ ============ ============ ============
Net Assets:
Institutional Shares $ 100,226 $ 16,194 $ 47,395 $ 422,647
Class A Shares 5,299 5,321 5,145 29,166
Class B Shares 2,142 331 1,132 1,730
Class C Shares 23,836 458 475 1,181
Advisor Shares 25,255 13 599 10,403
------------ ------------ ------------ ------------
Total $ 156,758 $ 22,317 $ 54,746 $ 465,127
============ ============ ============ ============
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 8,817 727 4,073 33,826
Class A Shares 468 243 449 2,329
Class B Shares 189 17 102 140
Class C Shares 2,116 21 43 98
Advisor Shares 2,230 1 53 831
------------ ------------ ------------ ------------
Total 13,820 1,009 4,720 37,224
============ ============ ============ ============
Net Asset Value
Institutional Shares $ 11.37 $ 22.25 $ 11.64 $ 12.49
============ ============ ============ ============
Class A Shares-redemption price per share $ 11.34 $ 21.85 $ 11.48 $ 12.52
============ ============ ============ ============
Class B Shares-offering price per share* $ 11.34 $ 21.24 $ 11.02 $ 12.37
============ ============ ============ ============
Class C Shares-offering price per share* $ 11.26 $ 20.67 $ 10.99 $ 12.05
============ ============ ============ ============
Advisor Shares-redemption price per share $ 11.33 $ 21.82 $ 11.35 $ 12.53
============ ============ ============ ============
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 5.00%
Advisor Shares 3.25% 3.25% 3.25% 3.25%
Maximum Offering Price (100%/(100%-Maximum sales
charge) of net asset value adjusted to the nearest
cent) per share
Class A Shares $ 11.94 $ 23.00 $ 12.08 $ 13.18
============ ============ ============ ============
Advisor Shares $ 11.71 $ 22.55 $ 11.73 $ 12.95
============ ============ ============ ============
HIGHYIELD INTERMEDIATE SHORT TERM
BOND BOND BOND BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
ASSETS:
Investments,at cost $ 49,427 $ 345,404 $ 543,298 $ 303,738
Net unrealized appreciation/(depreciation) 265 (1,395) (6,619) (4,825)
------------ ------------ ------------ ------------
Investments,at value 49,692 344,009 536,679 298,913
Investment in affiliates,at value (cost $--,$--,$--,$--,
$1,066,$152,$649,$--,$1,075,$4,249,$3,817,
$8,875;respectively) 1,075 4,249 3,817 8,875
------------ ------------ ------------ ------------
Total Investments 50,767 348,258 540,496 307,788
Cash -- -- -- --
Foreign currency,at value (cost $--,$--,$--,$--,$--,
$--,$--,$1,432,$--,$--,
$--,respectively) -- -- -- --
Interest,dividends and other receivables 920 1,388 4,203 2,046
Receivable for investments sold 153 -- 6,983 793
Receivable for Fund shares sold 1 34 -- 48
Receivable for forward foreign currency contracts -- -- -- --
Reclaims receivable -- -- -- --
Receivable from Advisor and affiliates 22 2 6 2
Prepaid expenses and other assets -- 33 36 26
------------ ------------ ------------ ------------
Total Assets 51,863 349,715 551,724 310,703
------------ ------------ ------------ ------------
LIABILITIES:
Distributions payable -- -- -- --
Payable for investments purchased 1,400 59,514 6,999 --
Payable for securities loaned -- 4,095 26,838 18,281
Payable for Fund shares redeemed -- 19 26 5
Payable for forward foreign currency contracts -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 31 129 237 109
Distribution and administrative services fees -- ^ 6 7 3
Other 14 43 81 60
------------ ------------ ------------ ------------
Total Liabilities 1,445 63,806 34,188 18,458
------------ ------------ ------------ ------------
NET ASSETS:
Paid-in Capital 50,121 289,216 556,614 318,805
Accumulated net investment income/(loss) 4 (420) (839) (1,262)
Accumulated net realized gain/(loss) from investment
transactions,futures and foreign currency 28 (1,492) (31,620) (20,473)
Net unrealized appreciation/(depreciation) on
investments,futures and foreign currency 265 (1,395) (6,619) (4,825)
------------ ------------ ------------ ------------
Net Assets $ 50,418 $ 285,909 $ 517,536 $ 292,245
============ ============ ============ ============
Market value of securities loaned $ -- $ 3,976 $ 26,052 $ 17,746
============ ============ ============ ============
Net Assets:
Institutional Shares $ 50,332 $ 268,408 $ 486,919 $ 277,758
Class A Shares 56 13,639 26,897 14,232
Class B Shares 10 2,989 2,710 NA
Class C Shares 10 435 1,007 252
Advisor Shares 10 438 3 3
------------ ------------ ------------ ------------
Total $ 50,418 $ 285,909 $ 517,536 $ 292,245
============ ============ ============ ============
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 4,993 27,202 50,506 29,885
Class A Shares 6 1,383 2,781 1,532
Class B Shares 1 303 282 NA
Class C Shares 1 43 105 27
Advisor Shares 1 44 -- ^ -- ^
------------ ------------ ------------ ------------
Total 5,002 28,975 53,674 31,444
============ ============ ============ ============
Net Asset Value
Institutional Shares $ 10.08 $ 9.87 $ 9.64 $ 9.29
============ ============ ============ ============
Class A Shares-redemption price per share $ 10.08 $ 9.86 $ 9.67 $ 9.29
============ ============ ============ ============
Class B Shares-offering price per share* $ 10.08 $ 9.87 $ 9.61 NA
============ ============ ============ ============
Class C Shares-offering price per share* $ 10.08 $ 9.87 $ 9.63 $ 9.29
============ ============ ============ ============
Advisor Shares-redemption price per share $ 10.08 $ 9.86 $ 9.64 $ 9.29
============ ============ ============ ============
Maximum Sales Charge
Class A Shares 4.75% 4.75% 3.50% 3.50%
Advisor Shares 3.25% 3.25% 2.00% 2.00%
Maximum Offering Price (100%/(100%-Maximum sales
charge) of net asset value adjusted to the nearest
cent) per share
Class A Shares $ 10.58 $ 10.35 $ 10.02 $ 9.63
============ ============ ============ ============
Advisor Shares $ 10.42 $ 10.19 $ 9.84 $ 9.48
============ ============ ============ ============
________________
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred dollars/shares.
# Represents investments in affiliates.
(a) Formerly the Select Stock Fund.
SEE NOTES TO FINANCIAL STATEMENTS
102-103 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
U.S. INTERMEDIATE OHIO MICHIGAN
GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND
FUND FUND FUND FUND FUND
---------- ---------- ------------ ---------- ----------
ASSETS:
Investments,at cost $ 62,401 $ 43,564 $ 183,871 $ 118,515 $ 63,487
Net unrealized appreciation/(depreciation) (778) 1,824 4,203 2,864 (226)
---------- ---------- ------------ ---------- ----------
Investments,at value 61,623 45,388 188,074 121,379 63,261
Investment in affiliates,at value (cost $3,117,$--,$--,$--,
$--;respectively) 3,117 -- -- -- --
---------- ---------- ------------ ---------- ----------
Total Investments 64,740 45,388 188,074 121,379 63,261
Interest,dividends and other receivables 394 543 2,037 1,280 752
Receivable for investments sold -- 494 1,152 1,119 --
Receivable for Fund shares sold 12 107 -- -- --
Receivable from Advisor and affiliates 1 2 1 1 2
Prepaid expenses and other assets 23 19 28 20 10
---------- ---------- ------------ ---------- ----------
Total Assets 65,170 46,553 191,292 123,799 64,025
---------- ---------- ------------ ---------- ----------
LIABILITIES:
Payable for investments purchased 5,996 494 5,001 -- --
Payable for Fund shares redeemed 43 -- ^ -- 28 --
Accrued expenses and other payables:
Payable to Advisor and affiliates 22 17 70 60 27
Distribution and administrative services fees 7 2 1 10 2
Other 15 14 29 23 18
---------- ---------- ------------ ---------- ----------
Total Liabilities 6,083 527 5,101 121 47
---------- ---------- ------------ ---------- ----------
NET ASSETS:
Paid-in Capital 59,886 44,093 181,689 120,946 64,291
Accumulated net investment income/(loss) 8 12 3 25 (7)
Accumulated net realized gain/(loss) from
investment transactions (29) 97 296 (157) (80)
Net unrealized appreciation/(depreciation) on investments (778) 1,824 4,203 2,864 (226)
---------- ---------- ------------ ---------- ----------
Net Assets $ 59,087 $ 46,026 $ 186,191 $ 123,678 $ 63,978
========== ========== ============ ========== ==========
Net Assets:
Institutional Shares $ 30,748 $ 42,783 $ 182,587 $ 93,922 $ 57,665
Class A Shares 26,115 1,539 2,888 24,658 5,228
Class B Shares NA 1,205 624 3,765 818
Class C Shares 2,221 138 89 1,330 264
Advisor Shares 3 361 3 3 3
---------- ---------- ------------ ---------- ----------
Total $ 59,087 $ 46,026 $ 186,191 $ 123,678 $ 63,978
========== ========== ============ ========== ==========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized,no par value):
Institutional Shares 3,087 4,490 18,069 9,289 5,790
Class A Shares 2,618 161 286 2,436 524
Class B Shares NA 127 61 380 82
Class C Shares 224 15 8 132 26
Advisor Shares -- ^ 38 -- ^ -- ^ -- ^
---------- ---------- ------------ ---------- ----------
Total 5,929 4,831 18,424 12,237 6,422
========== ========== ============ ========== ==========
Net Asset Value
Institutional Shares $ 9.96 $ 9.53 $ 10.10 $ 10.11 $ 9.96
========== ========== ============ ========== ==========
Class A Shares-redemption price per share $ 9.97 $ 9.57 $ 10.11 $ 10.12 $ 9.95
========== ========== ============ ========== ==========
Class B Shares-offering price per share* NA $ 9.50 $ 10.09 $ 9.90 $ 9.95
========== ========== ============ ========== ==========
Class C Shares-offering price per share* $ 9.89 $ 9.51 $ 10.10 $ 10.08 $ 9.95
========== ========== ============ ========== ==========
Advisor Shares-redemption price per share $ 9.97 $ 9.52 $ 10.11 $ 10.11 $ 9.96
========== ========== ============ ========== ==========
Maximum Sales Charge
Class A Shares 4.75% 4.75% 3.50% 4.75% 4.75%
Advisor Shares 3.25% 3.25% 2.00% 3.25% 3.25%
Maximum Offering Price (100%/(100%-Maximum sales
charge) of net asset value adjusted to the
nearest cent) per share
Class A Shares $ 10.47 $ 10.05 $ 10.48 $ 10.62 $ 10.45
========== ========== ============ ========== ==========
Advisor Shares $ 10.30 $ 9.84 $ 10.32 $ 10.45 $ 10.29
========== ========== ============ ========== ==========
_______________
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
104
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31,2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP EQUITY
GROWTH GROWTH GROWTH CORE INDEX
FUND FUND FUND FUND (a) FUND
---------- ---------- ------------ ---------- ----------
INVESTMENT INCOME:
Dividend income $ 209 $ 1,897 $ 3,771 $ 2,022 $ 3,982
Income from securities lending 32 34 77 10 30
---------- ---------- ------------ ---------- ----------
Total Investment Income 241 1,931 3,848 2,032 4,012
---------- ---------- ------------ ---------- ----------
EXPENSES:
Investment advisory fees 701 1,635 3,497 674 626
Administrative fees 181 363 769 173 385
Distribution services fees-Class A Shares 26 51 191 29 88
Distribution services fees-Class B Shares 8 34 84 5 22
Distribution services fees-Class C Shares 2 6 17 1 9
Distribution services fees-Advisor Shares 2 3 7 -- ^ 4
Administrative services fees-Class C Shares 1 2 6 -- ^ 3
Administrative services fees-Select Shares NA NA NA NA 7
Administrative services fees-Preferred Shares NA NA NA NA 57
Administrative services fees-Trust Shares NA NA NA NA 93
Accounting fees 44 63 100 41 84
Registration and filing fees 10 15 19 8 11
Transfer and dividend disbursing agent fees 39 68 165 35 67
Custody fees 12 14 21 11 17
Trustees' fees and expenses 3 6 13 3 6
Other expenses 30 40 122 24 62
---------- ---------- ------------ ---------- ----------
Total expenses 1,059 2,300 5,011 1,004 1,541
---------- ---------- ------------ ---------- ----------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates -- -- -- (82) (850)
Transfer and dividend disbursing agent fees waived -- (6) (6) -- (11)
---------- ---------- ------------ ---------- ----------
Net Expenses 1,059 2,294 5,005 922 680
---------- ---------- ------------ ---------- ----------
Net Investment Income/(Loss) (818) (363) (1,157) 1,110 3,332
---------- ---------- ------------ ---------- ----------
REALIZED AND UNREALIZED GAINS
FROM INVESTMENTS AND FUTURES:
Net realized gains on investment transactions 16,854 57,689 60,133 3,532 9,795
Net realized gains on futures transactions 257 -- -- 129 216
Change in unrealized appreciation/depreciation
on investments and futures 254 (14,203) (20,948) 4,699 4,743
---------- ---------- ------------ ---------- ----------
Net realized and unrealized gains on investments
and futures 17,365 43,486 39,185 8,360 14,754
---------- ---------- ------------ ---------- ----------
Change in net assets resulting from operations $ 16,547 $ 43,123 $ 38,028 $ 9,470 $ 18,086
========== ========== ============ ========== ==========
_______________
(a) Reflects operations for the period from August 1,2005 (date of
commencement of operations) to January 31,2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
105
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
MICRO CAP SMALL CAP MULTI CAP
BALANCED VALUE VALUE VALUE
FUND FUND FUND FUND
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 934 $ -- $ -- $ --
Dividend income 750 662 1,156 3,951
Income from securities lending 6 37 27 25
------------ ------------ ------------ ------------
Total Investment Income 1,690 699 1,183 3,976
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 484 770 649 1,760
Administrative fees 111 140 131 313
Distribution services fees-Class A Shares 67 27 3 49
Distribution services fees-Class B Shares 51 36 6 110
Distribution services fees-Class C Shares 14 21 4 17
Distribution services fees-Advisor Shares -- ^ 67 4 97
Administrative services fees-Class C Shares 5 7 1 6
Accounting fees 43 40 36 57
Registration and filing fees 15 9 5 5
Transfer and dividend disbursing agent fees 42 50 25 76
Custody fees 10 25 9 12
Trustees' fees and expenses 2 3 2 5
Other expenses 17 25 21 49
------------ ------------ ------------ ------------
Total expenses 861 1,220 896 2,556
------------ ------------ ------------ ------------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (130) -- (6) --
Transfer and dividend disbursing agent fees waived -- -- -- (6)
------------ ------------ ------------ ------------
Net Expenses 731 1,220 890 2,550
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 959 (521) 293 1,426
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) on investment transactions 7,684 27,710 8,360 32,231
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on investments (7,355) (15,230) (1,477) (12,421)
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses) on investments 329 12,480 6,883 19,810
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 1,288 $ 11,959 $ 7,176 $ 21,236
============ ============ ============ ============
DISCIPLINED LIFEMODEL
LARGE CAP LIFEMODEL MODERATELY LIFEMODEL
VALUE AGGRESSIVE AGGRESSIVE MODERATE
FUND(a) FUND SM (a) FUND SM (a) FUND SM (a)
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ -- $ -- $ -- $ --
Dividend income 7,383 1,594 # 3,933 # 7,614 #
Income from securities lending 28 -- -- --
------------ ------------ ------------ ------------
Total Investment Income 7,411 1,594 3,933 7,614
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 2,449 108 225 370
Administrative fees 540 131 267 436
Distribution services fees-Class A Shares 31 60 158 133
Distribution services fees-Class B Shares 28 81 254 221
Distribution services fees-Class C Shares 9 8 34 29
Distribution services fees-Advisor Shares -- ^ -- ^ -- ^ -- ^
Administrative services fees-Class C Shares 3 3 11 10
Accounting fees 80 35 50 70
Registration and filing fees 18 2 3 2
Transfer and dividend disbursing agent fees 86 36 73 82
Custody fees 13 7 10 13
Trustees' fees and expenses 9 2 5 8
Other expenses 83 22 41 68
------------ ------------ ------------ ------------
Total expenses 3,349 495 1,131 1,442
------------ ------------ ------------ ------------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates -- (274) (538) (836)
Transfer and dividend disbursing agent fees waived (6) (10) (16) (16)
------------ ------------ ------------ ------------
Net Expenses 3,343 211 577 590
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 4,068 1,383 3,356 7,024
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) on investment transactions 27,055 (259)+ (519)+ (20)+
Realized gain distributions from underlying funds -- 5,088 8,409 10,525
Change in unrealized appreciation/depreciation on investments (9,575) 3,609 4,936 2,717
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses) on investments 17,480 8,438 12,826 13,222
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 21,548 $ 9,821 $ 16,182 $ 20,246
============ ============ ============ ============
LIFEMODEL
MODERATELY LIFEMODEL STRATEGIC
CONSERVATIVE CONSERVATIVE INCOME
FUND SM (a) FUND SM (a) FUND
------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ -- $ -- $ 1,211
Dividend income 1,756 # 1,139 # 3,642
Income from securities lending -- -- 8
------------ ------------ ------------
Total Investment Income 1,756 1,139 4,861
------------ ------------ ------------
EXPENSES:
Investment advisory fees 79 44 821
Administrative fees 97 56 148
Distribution services fees-Class A Shares 51 24 6
Distribution services fees-Class B Shares 113 61 11
Distribution services fees-Class C Shares 14 17 99
Distribution services fees-Advisor Shares -- ^ -- ^ 75
Administrative services fees-Class C Shares 5 6 33
Accounting fees 35 35 40
Registration and filing fees -- ^ -- ^ 7
Transfer and dividend disbursing agent fees 27 18 36
Custody fees 7 5 6
Trustees' fees and expenses 2 1 2
Other expenses 15 9 24
------------ ------------ ------------
Total expenses 445 276 1,308
------------ ------------ ------------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (210) (135) (2)
Transfer and dividend disbursing agent fees waived (10) (10) --
------------ ------------ ------------
Net Expenses 225 131 1,306
------------ ------------ ------------
Net Investment Income/(Loss) 1,531 1,008 3,555
------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) on investment transactions 339 + (21)+ 721
Realized gain distributions from underlying funds 1,770 631 --
Change in unrealized appreciation/depreciation on investments (165) (334) (2,957)
------------ ------------ ------------
Net realized and unrealized gains/(losses) on investments 1,944 276 (2,236)
------------ ------------ ------------
Change in net assets resulting from operations $ 3,475 $ 1,284 $ 1,319
============ ============ ============
_______________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
# Represents income from affiliates.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
106-107 Spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DIVIDEND INTERNATIONAL HIGHYIELD
GROWTH TECHNOLOGY EQUITY BOND
FUND (a) (b) FUND FUND FUND (c)
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income -- -- $ 26 $ 359
Dividend income $ 190 $ 60 3,401 21
Foreign tax withholding -- -- (111) --
Income from securities lending -- ^ 18 61 --
------------ ------------ ------------ ------------
Total Investment Income 190 78 3,377 380
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 76 243 1,958 44
Administrative fees 20 47 346 13
Distribution services fees-Class A Shares 8 7 28 -- ^
Distribution services fees-Class B Shares 2 5 7 -- ^
Distribution services fees-Class C Shares 2 2 4 -- ^
Distribution services fees-Advisor Shares -- ^ 1 29 -- ^
Administrative services fees-Class C Shares 1 1 1 -- ^
Accounting fees 27 33 108 15
Registration and filing fees 14 17 19 4
Transfer and dividend disbursing agent fees 10 16 56 4
Custody fees 5 8 138 2
Trustees' fees and expenses -- ^ 1 6 1
Other expenses 45 4 53 2
------------ ------------ ------------ ------------
Total expenses 210 385 2,753 85
------------ ------------ ------------ ------------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (100) -- (28) (38)
Transfer and dividend disbursing agent fees waived -- -- (6) --
Distribution services-Class A Shares and
Class B Shares waived -- -- -- --
------------ ------------ ------------ ------------
Net Expenses 110 385 2,719 47
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 80 (307) 658 333
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS,FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 2,405 5,735 8,224 28
Net realized gains on futures transactions -- -- 3,000 --
Change in unrealized appreciation/depreciation
on investments,futures and foreign currency (1,801) 2,251 64,695 265
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses)
on investments,futures and foreign currency 604 7,986 75,919 293
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 684 $ 7,679 $ 76,577 $ 626
============ ============ ============ ============
U.S.
INTERMEDIATE SHORT TERM GOVERNMENT
BOND BOND BOND BOND
FUND FUND (a) FUND (a) FUND (a)
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 6,828 $ 13,671 $ 5,951 $ 1,342
Dividend income 228 117 131 38
Foreign tax withholding -- -- -- --
Income from securities lending 22 19 12 --
------------ ------------ ------------ ------------
Total Investment Income 7,078 13,807 6,094 1,380
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 903 1,538 813 170
Administrative fees 269 494 284 54
Distribution services fees-Class A Shares 19 36 20 34
Distribution services fees-Class B Shares 17 15 NA NA
Distribution services fees-Class C Shares 2 4 1 10
Distribution services fees-Advisor Shares 1 -- ^ -- ^ -- ^
Administrative services fees-Class C Shares 1 1 -- ^ 3
Accounting fees 63 91 57 35
Registration and filing fees 14 16 10 12
Transfer and dividend disbursing agent fees 44 74 45 15
Custody fees 15 19 11 4
Trustees' fees and expenses 5 8 5 1
Other expenses 42 75 50 8
------------ ------------ ------------ ------------
Total expenses 1,395 2,371 1,296 346
------------ ------------ ------------ ------------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (219) (266) (154) (65)
Transfer and dividend disbursing agent fees waived (6) (6) (5) --
Distribution services-Class A Shares and
Class B Shares waived -- (11) -- --
------------ ------------ ------------ ------------
Net Expenses 1,170 2,088 1,137 281
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 5,908 11,719 4,957 1,099
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS,FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions (574) (3,482) (873) (71)
Net realized gains on futures transactions -- -- -- --
Change in unrealized appreciation/depreciation
on investments,futures and foreign currency (3,205) (4,457) (233) (411)
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses)
on investments,futures and foreign currency (3,779) (7,939) (1,106) (482)
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 2,129 $ 3,780 $ 3,851 $ 617
============ ============ ============ ============
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
FUND FUND (a) FUND (a) FUND (a)
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 1,111 $ 4,151 $ 2,794 $ 1,257
Dividend income 10 19 13 8
Foreign tax withholding -- -- -- --
Income from securities lending -- -- -- --
------------ ------------ ------------ ------------
Total Investment Income 1,121 4,170 2,807 1,265
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 140 552 363 167
Administrative fees 49 180 121 69
Distribution services fees-Class A Shares 2 4 32 7
Distribution services fees-Class B Shares 7 5 20 5
Distribution services fees-Class C Shares 1 1 10 1
Distribution services fees-Advisor Shares 1 -- ^ -- ^ -- ^
Administrative services fees-Class C Shares -- ^ -- ^ 3 -- ^
Accounting fees 39 51 39 40
Registration and filing fees 8 13 17 5
Transfer and dividend disbursing agent fees 12 29 23 15
Custody fees 6 11 7 6
Trustees' fees and expenses 1 3 2 1
Other expenses 8 26 21 14
------------ ------------ ------------ ------------
Total expenses 274 875 658 330
------------ ------------ ------------ ------------
Less:Waiver and/or reimbursement from
Advisor and/or affiliates (87) (154) (62) (64)
Transfer and dividend disbursing agent fees waived -- -- -- --
Distribution services-Class A Shares and
Class B Shares waived -- (3) -- (3)
------------ ------------ ------------ ------------
Net Expenses 187 718 596 263
------------ ------------ ------------ ------------
Net Investment Income/(Loss) 934 3,452 2,211 1,002
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS,FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions 121 287 (372) (39)
Net realized gains on futures transactions -- -- -- --
Change in unrealized appreciation/depreciation
on investments,futures and foreign currency (661) (2,198) (950) (477)
------------ ------------ ------------ ------------
Net realized and unrealized gains/(losses)
on investments,futures and foreign currency (540) (1,911) (1,322) (516)
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 394 $ 1,541 $ 889 $ 486
============ ============ ============ ============
_______________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
(b) Formerly the Select Stock Fund.Other expenses includes $15 in Legal and
$29 in Printing.
(c) Reflects operations for the period from November 29, 2005 (date of
commencement of operations) to January 31, 2006.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
108-109 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP
GROWTH FUND GROWTH FUND QUALITY GROWTH FUND
----------------------- ----------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
----------- --------- ----------- --------- ----------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (818) $ (1,728) $ (363) $ (318) $ (1,157) $ 863
Net realized gains on investment transactions and
option contracts 16,854 21,831 57,689 3,529 60,133 40,777
Net realized gains on futures transactions 257 811 -- -- -- --
Net change in unrealized appreciation/depreciation
on investments,options and futures 254 24,776 (14,203) 83,951 (20,948) 71,107
----------- --------- ----------- --------- ----------- -----------
Change in net assets resulting from operations 16,547 45,690 43,123 87,162 38,028 112,747
----------- --------- ----------- --------- ----------- -----------
Distributions from net investment income:
Institutional Shares -- -- (353) -- -- (1,869)
Class A Shares -- -- (17) -- -- (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 (19,569) (39,664) (4,028) -- -- --
Class A Shares (2,500) (4,468) (479) -- -- --
Class B Shares (211) (331) (85) -- -- --
Class C Shares (74) (150) (18) -- -- --
Advisor Shares (99) (213) (13) -- -- --
----------- --------- ----------- --------- ----------- -----------
Change in net assets from shareholder distributions (22,453) (44,826) (4,993) -- -- (2,218)
----------- --------- ----------- --------- ----------- -----------
Change in net assets from Fund share transactions (43,877) (13,767) (70,584) (37,413) (89,201) (345,411)
----------- --------- ----------- --------- ----------- -----------
Change in net assets (49,783) (12,903) (32,454) 49,749 (51,173) (234,882)
NET ASSETS:
Beginning of period 240,224 253,127 444,542 394,793 899,888 1,134,770
----------- --------- ----------- --------- ----------- -----------
End of period $ 190,441 $ 240,224 $ 412,088 $ 444,542 $ 848,715 $ 899,888
=========== ========= =========== ========= =========== ===========
Accumulated Net Investment Income/(Loss) $ (830) $ (12) $ (733) $ -- $ (1,157) $ --
=========== ========= =========== ========= =========== ===========
LARGE CAP
CORE FUND EQUITY INDEX FUND BALANCED FUND
----------------------- ----------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a) 2005 2006 (a) 2005
----------- --------- ----------- --------- ----------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,110 $ 1,271 $ 3,332 $ 8,661 $ 959 $ 2,720
Net realized gains on investment transactions and
option contracts 3,532 6,423 9,795 69,597 7,684 7,493
Net realized gains on futures transactions 129 138 216 715 -- --
Net change in unrealized appreciation/depreciation
on investments,options and futures 4,699 9,054 4,743 (14,823) (7,355) 3,518
----------- --------- ----------- --------- ----------- -----------
Change in net assets resulting from operations 9,470 16,886 18,086 64,150 1,288 13,731
----------- --------- ----------- --------- ----------- -----------
Distributions from net investment income:
Institutional Shares (1,015) (1,019) (1,603) (3,630) (437) (1,594)
Class A Shares (111) (264) (577) (1,253) (376) (1,180)
Class B Shares (2) (3) (19) (42) (33) (121)
Class C Shares -- ^ -- ^ (11) (22) (12) (44)
Advisor Shares -- ^ NA (10) (24) (1) (3)
Select Shares NA NA (159) (306) NA NA
Preferred Shares NA NA (652) (1,755) NA NA
Trust Shares NA NA (597) (1,348) NA NA
Distributions from net realized gains:
Institutional Shares (1,989) (2,094) -- -- -- --
Class A Shares (277) (656) -- -- -- --
Class B Shares (12) (21) -- -- -- --
Class C Shares (2) (4) -- -- -- --
Advisor Shares -- ^ NA -- -- -- --
----------- --------- ----------- --------- ----------- -----------
Change in net assets from shareholder distributions (3,408) (4,061) (3,628) (8,380) (859) (2,942)
----------- --------- ----------- --------- ----------- -----------
Change in net assets from Fund share transactions (11,625) 65,388 (23,686) (170,144) (26,017) (66,996)
----------- --------- ----------- --------- ----------- -----------
Change in net assets (5,563) 78,213 (9,228) (114,374) (25,588) (56,207)
NET ASSETS:
Beginning of period 194,949 116,736 420,285 (534,659) 134,330 190,537
----------- --------- ----------- --------- ----------- -----------
End of period $ 189,386 $ 194,949 $ 411,057 $ 420,285 $ 108,742 $ 134,330
=========== ========= =========== ========= =========== ===========
Accumulated Net Investment Income/(Loss) $ 2 $ 20 $ 401 $ 697 $ 222 $ 122
=========== ========= =========== ========= =========== ===========
MICRO CAP
VALUE FUND
-----------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2006 (a) 2005
----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (521) $ (404)
Net realized gains on investment transactions and
option contracts 27,710 37,827
Net realized gains on futures transactions -- --
Net change in unrealized appreciation/depreciation
on investments,options and futures (15,230) (9,592)
----------- ---------
Change in net assets resulting from operations 11,959 27,831
----------- ---------
Distributions from net investment income:
Institutional Shares -- --
Class A Shares -- --
Class B Shares -- --
Class C Shares -- --
Advisor Shares -- --
Select Shares NA NA
Preferred Shares NA NA
Trust Shares NA NA
Distributions from net realized gains:
Institutional Shares (26,630) (9,983)
Class A Shares (5,289) (2,822)
Class B Shares (2,148) (486)
Class C Shares (1,672) (404)
Advisor Shares (6,413) (2,794)
----------- ---------
Change in net assets from shareholder distributions (42,152) (16,489)
----------- ---------
Change in net assets from Fund share transactions (4,122) (85,038)
----------- ---------
Change in net assets (34,315) (73,696)
NET ASSETS:
Beginning of period 177,579 251,275
----------- ---------
$ 143,264 $ 177,579
End of period =========== =========
$ (521) $ --
Accumulated Net Investment Income/(Loss) =========== =========
_________________
(a) Unaudited
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
110-111 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP
SMALL CAP VALUE FUND MULTI CAP VALUE FUND VALUE FUND
----------------------- ----------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a)(b) 2005
----------- --------- ----------- --------- ----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 293 $ (315) $ 1,426 $ 928 $ 4,068 $ 8,216
Net realized gains/(losses) on investment
transactions 8,360 12,474 32,231 24,985 27,055 52,351
Realized gain distributions from underlying funds -- -- -- -- -- --
Net change in unrealized appreciation/depreciation
on investments (1,477) 18,099 (12,421) 46,090 (9,575) 37,251
----------- --------- ----------- --------- ----------- ---------
Change in net assets resulting from operations 7,176 30,258 21,236 72,003 21,548 97,818
----------- --------- ----------- --------- ----------- ---------
Distributions from net investment income:
Institutional Shares (288) -- (554) (1,146) (3,931) (7,923)
Class A Shares -- -- (41) (74) (137) (241)
Class B Shares -- -- -- -- (13) (14)
Class C Shares -- -- -- -- (5) (6)
Advisor Shares -- -- -- (14) (1) NA
Distributions from net realized gains:
Institutional Shares (13,847) (10,543) (19,664) (15,051) (54,494) (16,850)
Class A Shares (285) (219) (3,250) (2,088) (2,337) (655)
Class B Shares (135) (60) (1,866) (1,156) (541) (134)
Class C Shares (105) (46) (392) (289) (222) (57)
Advisor Shares (147) (140) (2,894) (2,387) (16) NA
----------- --------- ----------- --------- ----------- ---------
Change in net assets from shareholder distributions (14,807) (11,008) (28,661) (22,205) (61,697) (25,880)
----------- --------- ----------- --------- ----------- ---------
Change in net assets from Fund share transactions (17,280) 33,727 (26,843) (1,733) 33,732 (125,327)
----------- --------- ----------- --------- ----------- ---------
Change in net assets (24,911) 52,977 (34,268) 48,065 (6,417) (53,389)
NET ASSETS:
Beginning of period 165,268 112,291 379,051 330,986 607,108 660,497
----------- --------- ----------- --------- ----------- ---------
End of period $ 140,357 $ 165,268 $ 344,783 $ 379,051 $ 600,691 $ 607,108
=========== ========= =========== ========= =========== =========
Accumulated Net Investment Income/(Loss) $ 5 $ -- $ 831 $ -- $ 505 $ 524
=========== ========= =========== ========= =========== =========
LIFEMODEL LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE FUND SM AGGRESSIVE FUND SM MODERATE FUND SM
----------------------- ----------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a)(b) 2005 2006 (a)(b) 2005
----------- -------- ----------- -------- ----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,383 $ 1,123 $ 3,356 $ 3,460 $ 7,024 $ 9,811
Net realized gains/(losses) on investment
transactions (259) + 637 + (519) + 1,446 + (20)+ 2,848 +
Realized gain distributions from underlying funds 5,088 2,976 8,409 4,937 10,525 7,386
Net change in unrealized appreciation/depreciation
on investments 3,609 14,201 4,936 23,784 2,717 28,761
----------- -------- ----------- -------- ----------- ---------
Change in net assets resulting from operations 9,821 18,937 16,182 33,627 20,246 48,806
----------- -------- ----------- -------- ----------- ---------
Distributions from net investment income:
Institutional Shares (825) (680) (1,419) (1,539) (4,948) (7,125)
Class A Shares (437) (374) (1,407) (1,532) (1,430) (1,978)
Class B Shares (115) (72) (391) (276) (428) (479)
Class C Shares (16) (9) (66) (52) (73) (88)
Advisor Shares -- ^ NA (2) NA (1) NA
Distributions from net realized gains:
Institutional Shares (1,714) (346) (2,273) (537) (6,249) (768)
Class A Shares (1,043) (248) (2,490) (650) (2,006) (240)
Class B Shares (349) (81) (996) (257) (828) (93)
Class C Shares (48) (11) (172) (50) (142) (17)
Advisor Shares (1) NA (5) NA (2) NA
----------- -------- ----------- -------- ----------- ---------
Change in net assets from shareholder distributions (4,548) (1,821) (9,221) (4,893) (16,107) (10,788)
----------- -------- ----------- -------- ----------- ---------
Change in net assets from Fund share transactions 15,033 14,139 19,121 41,124 (20,756) 2,644
----------- -------- ----------- -------- ----------- ---------
Change in net assets 20,306 31,255 26,082 69,858 (16,617) 40,662
NET ASSETS:
Beginning of period 135,611 104,356 294,543 224,685 498,230 457,568
----------- -------- ----------- -------- ----------- ---------
End of period $ 155,917 $135,611 $ 320,625 $294,543 $ 481,613 $ 498,230
=========== ======== =========== ======== =========== =========
Accumulated Net Investment Income/(Loss) $ (10) $ -- $ 214 $ 143 $ 772 $ 628
=========== ======== =========== ======== =========== =========
LIFEMODEL MODERATELY
CONSERVATIVE FUND SM
------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2006 (a)(b) 2005
----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,531 $ 2,245
Net realized gains/(losses) on investment
transactions 339 + 794 +
Realized gain distributions from underlying funds 1,770 1,270
Net change in unrealized appreciation/depreciation
on investments (165) 4,723
----------- ---------
Change in net assets resulting from operations 3,475 9,032
----------- ---------
Distributions from net investment income:
Institutional Shares (608) (970)
Class A Shares (598) (878)
Class B Shares (245) (321)
Class C Shares (40) (51)
Advisor Shares (1) NA
Distributions from net realized gains:
Institutional Shares (888) (301)
Class A Shares (940) (307)
Class B Shares (522) (173)
Class C Shares (84) (27)
Advisor Shares (1) NA
----------- ---------
Change in net assets from shareholder distributions (3,927) (3,028)
----------- ---------
Change in net assets from Fund share transactions (723) (2,817)
----------- ---------
Change in net assets (1,175) 3,187
NET ASSETS:
Beginning of period 106,833 103,646
----------- ---------
End of period $ 105,658 $ 106,833
=========== =========
Accumulated Net Investment Income/(Loss) $ 192 $ 153
=========== =========
________________
(a) Unaudited.
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
112-113 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL STRATEGIC
CONSERVATIVE FUND SM INCOME FUND DIVIDEND GROWTH FUND
---------------------- ----------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a) 2005 2006 (a)(b)(c) 2005
----------- -------- ----------- --------- -------------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,008 $ 1,530 $ 3,555 $ 7,124 $ 80 $ (142)
Net realized gains/(losses) on investment and
foreign currency transactions (21)+ (11)+ 721 481 2,405 245
Net realized gains on futures transactions -- -- -- -- -- --
Realized gain distributions from underlying funds 631 544 -- -- -- --
Net change in unrealized appreciation/depreciation
on investments,futures and foreign currency (334) 1,359 (2,957) 5,346 (1,801) 1,776
----------- -------- ----------- --------- -------------- ---------
Change in net assets resulting from operations 1,284 3,422 1,319 12,951 684 1,879
----------- -------- ----------- --------- -------------- ---------
Distributions from net investment income:
Institutional Shares (438) (500) (2,234) (4,198) -- --
Class A Shares (329) (620) (109) (110) -- --
Class B Shares (160) (264) (37) (36) -- --
Class C Shares (59) (111) (461) (1,191) -- --
Advisor Shares (1) NA (589) (1,483) -- NA
Distributions from net realized gains:
Institutional Shares (234) (132) (297) (67) -- --
Class A Shares (188) (197) (15) (2) -- --
Class B Shares (117) (118) (6) (1) -- --
Class C Shares (46) (52) (74) (26) -- --
Advisor Shares -- ^ NA (80) (28) -- NA
----------- -------- ----------- --------- -------------- ---------
Change in net assets from shareholder distributions (1,572) (1,994) (3,902) (7,142) -- --
----------- -------- ----------- --------- -------------- ---------
Change in net assets from Fund share transactions (2,408) 4,065 (6,619) (11,467) 7,746 (5,570)
----------- -------- ----------- --------- -------------- ---------
Change in net assets (2,696) 5,493 (9,202) (5,658) 8,430 (3,691)
NET ASSETS:
Beginning of period 60,242 54,749 165,960 171,618 13,887 17,578
----------- -------- ----------- --------- -------------- ---------
End of period $ 57,546 $ 60,242 $ 156,758 $ 165,960 $ 22,317 $ 13,887
=========== ======== =========== ========= ============== =========
Accumulated Net Investment Income/(Loss) $ 149 $ 128 $ 62 $ (63) $ 80 $ --
=========== ======== =========== ========= ============== =========
INTERNATIONAL
TECHNOLOGY FUND EQUITY FUND
---------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
----------- -------- ----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (307) $ (699) $ 658 $ 4,228
Net realized gains/(losses) on investment and
foreign currency transactions 5,735 3,738 8,224 23,657
Net realized gains on futures transactions -- -- 3,000 1,695
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments,futures and foreign currency 2,251 4,482 64,695 34,124
----------- -------- ----------- ---------
Change in net assets resulting from operations 7,679 7,521 76,577 63,704
----------- -------- ----------- ---------
Distributions from net investment income:
Institutional Shares -- -- (6,678) (6,672)
Class A Shares -- -- (320) (407)
Class B Shares -- -- (14) (10)
Class C Shares -- -- (10) (7)
Advisor Shares -- -- (102) (186)
Distributions from net realized gains:
Institutional Shares -- -- (9,322) --
Class A Shares -- -- (525) --
Class B Shares -- -- (36) --
Class C Shares -- -- (26) --
Advisor Shares -- -- (231) --
----------- -------- ----------- ---------
Change in net assets from shareholder distributions -- -- (17,264) (7,282)
----------- -------- ----------- ---------
Change in net assets from Fund share transactions 438 (9,010) 88,272 (100,439)
----------- -------- ----------- ---------
Change in net assets 8,117 (1,489) 147,585 (44,017)
NET ASSETS:
Beginning of period 46,629 48,118 317,542 361,559
----------- -------- ----------- ---------
End of period $ 54,746 $ 46,629 $ 465,127 $ 317,542
=========== ======== =========== =========
Accumulated Net Investment Income/(Loss) $ (307) $ -- $ (1,662) $ 4,804
=========== ======== =========== =========
HIGHYIELD
BOND FUND BOND FUND
----------- -----------------------
PERIOD SIX MONTHS YEAR
ENDED ENDED ENDED
JANUARY 31, JANUARY 31, JULY 31,
2006 (a)(d) 2006 (a) 2005
----------- ----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 333 $ 5,908 $ 9,498
Net realized gains/(losses) on investment and
foreign currency transactions 28 (574) 6,278
Net realized gains on futures transactions -- -- --
Realized gain distributions from underlying funds -- -- --
Net change in unrealized appreciation/depreciation
on investments,futures and foreign currency 265 (3,205) (2,694)
----------- ----------- ---------
Change in net assets resulting from operations 626 2,129 13,082
----------- ----------- ---------
Distributions from net investment income:
Institutional Shares (329) (6,002) (10,012)
Class A Shares -- ^ (299) (669)
Class B Shares -- ^ (56) (114)
Class C Shares -- ^ (9) (19)
Advisor Shares -- ^ (10) (22)
Distributions from net realized gains:
Institutional Shares -- (1,723) (317)
Class A Shares -- (89) (26)
Class B Shares -- (19) (5)
Class C Shares -- (3) (1)
Advisor Shares -- (3) (1)
----------- ----------- ---------
Change in net assets from shareholder distributions (329) (8,213) (11,186)
----------- ----------- ---------
Change in net assets from Fund share transactions 50,121 (21,104) 5,001
----------- ----------- ---------
Change in net assets 50,418 (27,188) 6,897
NET ASSETS:
Beginning of period -- 313,097 306,200
----------- ----------- ---------
End of period $ 50,418 $ 285,909 $ 313,097
=========== =========== =========
Accumulated Net Investment Income/(Loss) $ 4 $ (420) $ 48
=========== =========== =========
_____________________
(a) Unaudited.
(b) Reflects operations from the period August 1, 2005 (date of commencement
of operations) to January 31, 2006 for Advisor Shares.
(c) Formerly the Select Stock Fund.
(d) Reflects operations for the period from November 29, 2005 (date of
commencement of operations) to January 31, 2006.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
114-115 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
INTERMEDIATE SHORT TERM U.S.GOVERNMENT
BOND FUND BOND FUND BOND FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a)(b) 2005 2006 (a)(b) 2005
----------- --------- ----------- --------- ----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 11,719 $ 23,267 $ 4,957 $ 11,175 $ 1,099 $ 1,915
Net realized gains/(losses) on investment
transactions (3,482) 4,672 (873) (3,173) (71) 519
Net change in unrealized appreciation/depreciation
on investments (4,457) (8,592) (233) (2,091) (411) (744)
----------- --------- ----------- --------- ----------- ---------
Change in net assets resulting from operations 3,780 19,347 3,851 5,911 617 1,690
----------- --------- ----------- --------- ----------- ---------
Distributions from net investment income:
Institutional Shares (11,927) (25,017) (5,992) (15,030) (645) (1,002)
Class A Shares (607) (1,343) (286) (726) (504) (725)
Class B Shares (64) (146) NA NA NA NA
Class C Shares (19) (44) (4) (11) (38) (63)
Advisor Shares -- ^ NA -- ^ NA -- ^ NA
Distributions from net realized gains:
Institutional Shares -- -- -- -- (79) --
Class A Shares -- -- -- -- (68) --
Class B Shares -- -- NA NA NA NA
Class C Shares -- -- -- -- (6) --
Advisor Shares -- NA -- NA -- ^ NA
----------- --------- ----------- --------- ----------- ---------
Change in net assets from shareholder distributions (12,617) (26,550) (6,282) (15,767) (1,340) (1,790)
----------- --------- ----------- --------- ----------- ---------
Change in net assets from Fund share transactions (51,938) (133,932) (56,712) (162,815) (3,494) (15,817)
----------- --------- ----------- --------- ----------- ---------
Change in net assets (60,775) (141,135) (59,143) (172,671) (4,217) (15,917)
NET ASSETS:
Beginning of period 578,311 719,446 351,388 524,059 63,304 79,221
----------- --------- ----------- --------- ----------- ---------
End of period $ 517,536 $ 578,311 $ 292,245 $ 351,388 $ 59,087 $ 63,304
=========== ========= =========== ========= =========== =========
Accumulated Net Investment Income/(Loss) $ (839) $ 59 $ (1,262) $ 63 $ 8 $ 96
=========== ========= =========== ========= =========== =========
INTERMEDIATE MUNICIPAL OHIO MUNICIPAL
MUNICIPAL BOND FUND BOND FUND BOND FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a)(b) 2005 2006 (a)(b) 2005
----------- --------- ----------- --------- ----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 934 $ 2,203 $ 3,452 $ 8,041 $ 2,211 $ 5,034
Net realized gains/(losses) on investment
transactions 121 2,624 287 3,539 (372) 616
Net change in unrealized appreciation/depreciation
on investments (661) (2,137) (2,198) (4,799) (950) (1,635)
----------- --------- ----------- --------- ----------- ---------
Change in net assets resulting from operations 394 2,690 1,541 6,781 889 4,015
----------- --------- ----------- --------- ----------- ---------
Distributions from net investment income:
Institutional Shares (868) (2,063) (3,393) (9,070) (1,757) (3,881)
Class A Shares (27) (72) (48) (134) (417) (872)
Class B Shares (19) (44) (14) (41) (53) (109)
Class C Shares (2) (9) (2) (7) (31) (94)
Advisor Shares (6) (14) -- ^ NA -- ^ NA
Distributions from net realized gains:
Institutional Shares (2,037) (2,066) (2,353) (1,780) (240) (857)
Class A Shares (70) (89) (36) (30) (63) (200)
Class B Shares (65) (59) (11) (9) (10) (33)
Class C Shares (8) (16) (2) (2) (4) (29)
Advisor Shares (16) (17) -- ^ NA -- ^ NA
----------- --------- ----------- --------- ----------- ---------
Change in net assets from shareholder distributions (3,118) (4,449) (5,859) (11,073) (2,575) (6,075)
----------- --------- ----------- --------- ----------- ---------
Change in net assets from Fund share transactions (4,725) (7,190) (18,777) (47,562) (15,159) (19,764)
----------- --------- ----------- --------- ----------- ---------
Change in net assets (7,449) (8,949) (23,095) (51,854) (16,845) (21,824)
NET ASSETS:
Beginning of period 53,475 62,424 209,286 261,140 140,523 162,347
----------- --------- ----------- --------- ----------- ---------
End of period $ 46,026 $ 53,475 $ 186,191 $ 209,286 $ 123,678 $ 140,523
=========== ========= =========== ========= =========== =========
Accumulated Net Investment Income/(Loss) $ 12 $ -- $ 3 $ 8 $ 25 $ 72
=========== ========= =========== ========= =========== =========
MICHIGAN MUNICIPAL
BOND FUND
-----------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2006 (a)(b) 2005
----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,002 $ 2,600
Net realized gains/(losses) on investment
transactions (39) 97
Net change in unrealized appreciation/depreciation
on investments (477) (1,219)
----------- ---------
Change in net assets resulting from operations 486 1,478
----------- ---------
Distributions from net investment income:
Institutional Shares (929) (2,418)
Class A Shares (69) (150)
Class B Shares (8) (23)
Class C Shares (3) (14)
Advisor Shares -- ^ NA
Distributions from net realized gains:
Institutional Shares -- (120)
Class A Shares -- (8)
Class B Shares -- (2)
Class C Shares -- (1)
Advisor Shares -- NA
----------- ---------
Change in net assets from shareholder distributions (1,009) (2,736)
----------- ---------
Change in net assets from Fund share transactions (15,935) (34,329)
----------- ---------
Change in net assets (16,458) (35,587)
NET ASSETS:
Beginning of period 80,436 116,023
----------- ---------
End of period $ 63,978 $ 80,436
=========== =========
Accumulated Net Investment Income/(Loss) $ (7) $ --
=========== =========
________________
(a) Unaudited.
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
116-117 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND QUALITY GROWTH FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
----------- --------- ----------- --------- ----------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 4,965 $ 54,748 $ 15,956 $ 80,245 $ 53,216 $ 151,799
Dividends reinvested 19,476 39,477 4,159 -- -- 694
Shares redeemed (67,285) (104,594) (85,235) (98,890) (108,931) (414,863)
----------- --------- ----------- --------- ----------- ---------
Total Institutional Shares (42,844) (10,369) (65,120) (18,645) (55,715) (262,370)
----------- --------- ----------- --------- ----------- ---------
Class A Shares
Shares issued 594 1,881 1,094 3,564 1,964 6,110
Dividends reinvested 2,452 4,334 487 -- -- 321
Shares redeemed (3,793) (9,484) (6,232) (20,717) (31,169) (813,333)
----------- --------- ----------- --------- ----------- ---------
Total Class A Shares (747) (3,269) (4,651) (17,153) (29,205) (74,902)
----------- --------- ----------- --------- ----------- ---------
Class B Shares
Shares issued 30 233 296 517 280 607
Dividends reinvested 201 320 80 -- -- 2
Shares redeemed (211) (523) (690) (1,730) (2,484) (5,664)
----------- --------- ----------- --------- ----------- ---------
Total Class B Shares 20 30 (314) (1,213) (2,204) (5,055)
----------- --------- ----------- --------- ----------- ---------
Class C Shares
Shares issued 32 34 154 255 176 299
Dividends reinvested 68 117 18 -- -- 1
Shares redeemed (116) (324) (417) (701) (1,392) (3,196)
----------- --------- ----------- --------- ----------- ---------
Total Class C Shares (16) (173) (245) (446) (1,216) (2,896)
----------- --------- ----------- --------- ----------- ---------
Advisor Shares
Shares issued 41 123 101 267 530 546
Dividends reinvested 90 213 9 -- -- 4
Shares redeemed (421) (322) (364) (223) (1,391) (738)
----------- --------- ----------- --------- ----------- ---------
Total Advisor Shares (290) 14 (254) 44 (861) (188)
----------- --------- ----------- --------- ----------- ---------
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 $ (43,877) $ (13,767) $ (70,584) $ (37,413) $ (89,201) $(345,411)
=========== ========= =========== ========= =========== =========
LARGE CAP CORE FUND EQUITY INDEX FUND BALANCED FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a) 2005 2006 (a) 2005
----------- --------- ----------- --------- ----------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 5,606 $ 100,722 $ 32,869 $ 52,844 $ 2,206 $ 7,356
Dividends reinvested 2,098 2,375 1,329 2,884 379 1,433
Shares redeemed (17,511) (33,811) (41,626) (102,652) (14,449) (52,487)
----------- --------- ----------- --------- ----------- ---------
Total Institutional Shares (9,807) 69,286 (7,428) (46,924) (11,864) (43,698)
----------- --------- ----------- --------- ----------- ---------
Class A Shares
Shares issued 664 2,862 6,933 8,770 620 3,084
Dividends reinvested 370 889 558 1,216 365 1,148
Shares redeemed (2,834) (7,801) (9,593) (20,648) (12,786) (23,632)
----------- --------- ----------- --------- ----------- ---------
Total Class A Shares (1,800) (4,050) (2,102) (10,662) (11,801) (19,400)
----------- --------- ----------- --------- ----------- ---------
Class B Shares
Shares issued 61 366 360 956 86 320
Dividends reinvested 10 23 15 36 32 117
Shares redeemed (78) (254) (330) (821) (1,759) (3,366)
----------- --------- ----------- --------- ----------- ---------
Total Class B Shares (7) 135 45 171 (1,641) (2,929)
----------- --------- ----------- --------- ----------- ---------
Class C Shares
Shares issued 6 36 308 937 78 221
Dividends reinvested 2 4 8 19 12 43
Shares redeemed (22) (23) (346) (889) (756) (1,230)
----------- --------- ----------- --------- ----------- ---------
Total Class C Shares (14) 17 (30) 67 (666) (966)
----------- --------- ----------- --------- ----------- ---------
Advisor Shares
Shares issued 3 NA 243 788 4 31
Dividends reinvested -- ^ NA 8 22 1 3
Shares redeemed -- NA (709) (352) (50) (37)
----------- --------- ----------- --------- ----------- ---------
Total Advisor Shares 3 NA (458) 458 (45) (3)
----------- --------- ----------- --------- ----------- ---------
Select Shares
Shares issued NA NA 2,833 5,010 NA NA
Dividends reinvested NA NA 124 235 NA NA
Shares redeemed NA NA (4,581) (2,666) NA NA
----------- --------- ----------- --------- ----------- ---------
Total Select Shares NA NA (1,624) 2,579 NA NA
----------- --------- ----------- --------- ----------- ---------
Preferred Shares
Shares issued NA NA 5,938 13,120 NA NA
Dividends reinvested NA NA 623 1,695 NA NA
Shares redeemed NA NA (12,359) (117,426) NA NA
----------- --------- ----------- --------- ----------- ---------
Total Preferred Shares NA NA (5,798) (102,611) NA NA
----------- --------- ----------- --------- ----------- ---------
Trust Shares
Shares issued NA NA 1,339 23,837 NA NA
Dividends reinvested NA NA 107 190 NA NA
Shares redeemed NA NA (7,737) (37,249) NA NA
----------- --------- ----------- --------- ----------- ---------
Total Trust Shares NA NA (6,291) (13,222) NA NA
----------- --------- ----------- --------- ----------- ---------
Change from capital transactions $ (11,625) $ 65,388 $ (23,686) $(170,144) $ (26,017) $ (66,996)
=========== ========= =========== ========= =========== =========
MICRO CAP VALUE FUND
-----------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
2006 (a) 2005
----------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 14,669 $ 9,452
Dividends reinvested 25,917 9,657
Shares redeemed (31,714) (82,599)
----------- ---------
Total Institutional Shares 8,872 (63,490)
----------- ---------
Class A Shares
Shares issued 4,506 1,651
Dividends reinvested 4,986 2,394
Shares redeemed (14,447) (18,230)
----------- ---------
Total Class A Shares (4,955) (14,185)
----------- ---------
Class B Shares
Shares issued 381 261
Dividends reinvested 2,023 480
Shares redeemed (721) (744)
----------- ---------
Total Class B Shares 1,683 (3)
----------- ---------
Class C Shares
Shares issued 797 1,306
Dividends reinvested 1,557 371
Shares redeemed (1,387) (1,504)
----------- ---------
Total Class C Shares 967 173
----------- ---------
Advisor Shares
Shares issued 671 3,832
Dividends reinvested 5,916 2,517
Shares redeemed (17,276) (13,882)
----------- ---------
Total Advisor Shares (10,689) (7,533)
----------- ---------
Select Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
----------- ---------
Total Select Shares NA NA
----------- ---------
Preferred Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
----------- ---------
Total Preferred Shares NA NA
----------- ---------
Trust Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
----------- ---------
Total Trust Shares NA NA
----------- ---------
Change from capital transactions $ (4,122) $ (85,038)
=========== =========
________________
(a) Unaudited
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares
SEE NOTES TO FINANCIAL STATEMENTS
118-119 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS,CONTINUED - FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND QUALITY GROWTH FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
----------- -------- ----------- -------- ----------- --------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 345 3,582 990 5,611 3,257 10,164
Dividends reinvested 1,403 2,753 251 -- -- 46
Shares redeemed (4,586) (7,034) (5,358) (7,004) (6,687) (27,268)
----------- -------- ----------- -------- ----------- --------
Total Institutional Shares (2,838) (699) (4,117) (1,393) (3,430) (17,058)
----------- -------- ----------- -------- ----------- --------
Class A Shares
Shares issued 41 129 69 255 121 417
Dividends reinvested 182 310 30 -- -- 22
Shares redeemed (265) (649) (390) (1,481) (1,930) (5,468)
----------- -------- ----------- -------- ----------- --------
Total Class A Shares (42) (210) (291) (1,226) (1,809) (5,029)
----------- -------- ----------- -------- ----------- --------
Class B Shares
Shares issued 2 16 20 39 18 43
Dividends reinvested 15 23 5 -- -- -- ^
Shares redeemed (15) (36) (45) (129) (159) (395)
----------- -------- ----------- -------- ----------- --------
Total Class B Shares 2 3 (20) (90) (141) (352)
----------- -------- ----------- -------- ----------- --------
Class C Shares
Shares issued 2 2 10 20 12 21
Dividends reinvested 5 8 1 -- -- -- ^
Shares redeemed (8) (22) (28) (52) (92) (228)
----------- -------- ----------- -------- ----------- --------
Total Class C Shares (1) (12) (17) (32) (80) (207)
----------- -------- ----------- -------- ----------- --------
Advisor Shares
Shares issued 3 9 6 18 34 36
Dividends reinvested 7 15 1 -- -- -- ^
Shares redeemed (29) (22) (23) (16) (87) (50)
----------- -------- ----------- -------- ----------- --------
Total Advisor Shares (19) 2 (16) 2 (53) (14)
----------- -------- ----------- -------- ----------- --------
Select Shares
Shares issued NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA
----------- -------- ----------- -------- ----------- --------
Total Select Shares NA NA NA NA NA NA
----------- -------- ----------- -------- ----------- --------
Preferred Shares
Shares issued NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA
----------- -------- ----------- -------- ----------- --------
Total Preferred Shares NA NA NA NA NA NA
----------- -------- ----------- -------- ----------- --------
Trust Shares
Shares issued NA NA NA NA NA NA
Dividends reinvested NA NA NA NA NA NA
Shares redeemed NA NA NA NA NA NA
----------- -------- ----------- -------- ----------- --------
Total Trust Shares NA NA NA NA NA NA
----------- -------- ----------- -------- ----------- --------
Change from share transactions (2,898) (916) (4,461) (2,739) (5,513) (22,660)
=========== ======== =========== ======== =========== ========
LARGE CAP CORE FUND EQUITY INDEX FUND
------------------------ -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a) 2005
----------- -------- ----------- --------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 389 7,053 1,398 2,347
Dividends reinvested 142 171 56 128
Shares redeemed (1,188) (2,437) (1,766) (4,521)
----------- -------- ----------- --------
Total Institutional Shares (657) 4,787 (312) (2,046)
----------- -------- ----------- --------
Class A Shares
Shares issued 46 212 297 402
Dividends reinvested 25 65 24 54
Shares redeemed (197) (571) (407) (934)
----------- -------- ----------- --------
Total Class A Shares (126) (294) (86) (478)
----------- -------- ----------- --------
Class B Shares
Shares issued 4 26 15 43
Dividends reinvested 1 2 1 2
Shares redeemed (5) (18) (14) (37)
----------- -------- ----------- --------
Total Class B Shares -- ^ 10 2 8
----------- -------- ----------- --------
Class C Shares
Shares issued -- ^ 3 14 43
Dividends reinvested -- ^ -- ^ -- ^ 1
Shares redeemed (2) (2) (15) (40)
----------- -------- ----------- --------
Total Class C Shares (2) 1 (1) 4
----------- -------- ----------- --------
Advisor Shares
Shares issued -- ^ NA 11 36
Dividends reinvested -- ^ NA -- ^ 1
Shares redeemed -- NA (31) (16)
----------- -------- ----------- --------
Total Advisor Shares -- ^ NA (20) 21
----------- -------- ----------- --------
Select Shares
Shares issued NA NA 119 224
Dividends reinvested NA NA 5 10
Shares redeemed NA NA (200) (119)
----------- -------- ----------- --------
Total Select Shares NA NA (76) 115
----------- -------- ----------- --------
Preferred Shares
Shares issued NA NA 253 584
Dividends reinvested NA NA 26 76
Shares redeemed NA NA (526) (5,222)
----------- -------- ----------- --------
Total Preferred Shares NA NA (247) (4,562)
----------- -------- ----------- --------
Trust Shares
Shares issued NA NA 58 1,052
Dividends reinvested NA NA 4 8
Shares redeemed NA NA (328) (1,651)
----------- -------- ----------- --------
Total Trust Shares NA NA (266) (591)
----------- -------- ----------- --------
Change from share transactions (785) 4,504 (1,006) (7,529)
=========== ======== =========== ========
BALANCED FUND MICRO CAP VALUE FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
----------- -------- ----------- --------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 174 589 1,412 893
Dividends reinvested 30 114 3,244 915
Shares redeemed (1,137) (4,211) (3,352) (7,924)
----------- -------- ----------- --------
Total Institutional Shares (933) (3,508) 1,304 6,116
----------- -------- ----------- --------
Class A Shares
Shares issued 49 249 520 164
Dividends reinvested 29 92 643 231
Shares redeemed (1,014) (1,901) (1,422) (1,771)
----------- -------- ----------- --------
Total Class A Shares (936) (1,560) (259) (1,376)
----------- -------- ----------- --------
Class B Shares
Shares issued 7 26 39 27
Dividends reinvested 3 9 269 47
Shares redeemed (141) (275) (81) (75)
----------- -------- ----------- --------
Total Class B Shares (131) (240) 227 (1)
----------- -------- ----------- --------
Class C Shares
Shares issued 6 18 90 128
Dividends reinvested 1 4 207 37
Shares redeemed (61) (102) (149) (148)
----------- -------- ----------- --------
Total Class C Shares (54) (80) 148 17
----------- -------- ----------- --------
Advisor Shares
Shares issued -- ^ 3 68 390
Dividends reinvested -- ^ -- ^ 770 245
Shares redeemed (4) (3) (1,737) (1,385)
----------- -------- ----------- --------
Total Advisor Shares (4) -- ^ (899) (750)
----------- -------- ----------- --------
Select Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- -------- ----------- --------
Total Select Shares NA NA NA NA
----------- -------- ----------- --------
Preferred Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- -------- ----------- --------
Total Preferred Shares NA NA NA NA
----------- -------- ----------- --------
Trust Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
----------- -------- ----------- --------
Total Trust Shares NA NA NA NA
----------- -------- ----------- --------
Change from share transactions (2,058) (5,388) 521 (8,226)
=========== ======== =========== ========
____________________
(a) Unaudited.
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
120-121 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED - FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP
SMALL CAP GROWTH FUND MULTI CAP VALUE FUND VALUE FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a)(b) 2005
----------- -------- ----------- -------- ----------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 12,255 $ 55,220 $ 15,643 $ 66,947 $ 56,872 $ 82,591
Dividends reinvested 14,091 10,515 19,419 15,107 53,809 18,198
Shares redeemed (43,618) (33,029) (58,428) (82,530) (78,225) (227,228)
----------- -------- ----------- -------- ----------- ----------
Total Institutional Shares (17,272) 32,706 (23,366) (476) 32,456 (126,439)
----------- -------- ----------- -------- ----------- ----------
Class A Shares
Shares issued 317 1,102 3,483 9,858 2,338 7,203
Dividends reinvested 234 184 2,901 1,951 2,102 802
Shares redeemed (331) (1,186) (4,590) (10,763) (3,831) (7,514)
----------- -------- ----------- -------- ----------- ----------
Total Class A Shares 220 100 1,794 1,046 609 491
----------- -------- ----------- -------- ----------- ----------
Class B Shares
Shares issued 196 599 1,017 2,803 393 1,398
Dividends reinvested 98 55 1,749 1,133 434 139
Shares redeemed (69) (137) (1,759) (3,229) (514) (1,172)
----------- -------- ----------- -------- ----------- ----------
Total Class B Shares 225 517 1,007 707 313 365
----------- -------- ----------- -------- ----------- ----------
Class C Shares
Shares issued 85 474 591 2,020 268 708
Dividends reinvested 93 44 304 213 172 56
Shares redeemed (146) (256) (748) (2,078) (263) (508)
----------- -------- ----------- -------- ----------- ----------
Total Class C Shares 32 262 147 155 177 256
----------- -------- ----------- -------- ----------- ----------
Advisor Shares
Shares issued 188 344 1,028 1,914 167 NA
Dividends reinvested 124 129 2,816 2,263 10 NA
Shares redeemed (797) (331) (10,269) (7,342) -- NA
----------- -------- ----------- -------- ----------- ----------
Total Advisor Shares (485) 142 (6,425) (3,165) 177 NA
----------- -------- ----------- -------- ----------- ----------
Change from capital
transactions $ (17,280) $ 33,727 $ (26,843) $ (1,733) $ 33,732 $ (125,327)
=========== ======== =========== ======== =========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 566 2,646 618 2,739 3,838 5,849
Dividends reinvested 688 529 800 634 3,909 1,295
Shares redeemed (2,023) (1,594) (2,307) (3,414) (5,416) (15,801)
----------- -------- ----------- -------- ----------- ----------
Total Institutional Shares (769) 1,581 (889) (41) 2,331 (8,657)
----------- -------- ----------- -------- ----------- ----------
Class A Shares
Shares issued 15 54 138 415 159 509
Dividends reinvested 12 9 121 83 153 57
Shares redeemed (16) (57) (182) (450) (265) (528)
----------- -------- ----------- -------- ----------- ----------
Total Class A Shares 11 6 77 48 47 38
----------- -------- ----------- -------- ----------- ----------
Class B Shares
Shares issued 9 30 41 121 27 97
Dividends reinvested 5 3 75 49 31 10
Shares redeemed (3) (7) (72) (140) (35) (82)
----------- -------- ----------- -------- ----------- ----------
Total Class B Shares 11 26 44 30 23 25
----------- -------- ----------- -------- ----------- ----------
Class C Shares
Shares issued 4 24 24 86 19 50
Dividends reinvested 5 2 13 9 13 4
Shares redeemed (7) (12) (31) (88) (18) (36)
----------- -------- ----------- -------- ----------- ----------
Total Class C Shares 2 14 6 7 14 18
----------- -------- ----------- -------- ----------- ----------
Advisor Shares
Shares issued 9 16 41 81 11 NA
Dividends reinvested 6 7 118 96 1 NA
Shares redeemed (37) (16) (406) (308) -- NA
----------- -------- ----------- -------- ----------- ----------
Total Advisor Shares (22) 7 (247) (131) 12 NA
----------- -------- ----------- -------- ----------- ----------
Change from share transactions (767) 1,634 (1,009) (87) 2,427 (8,576)
=========== ======== =========== ======== =========== ========
LIFEMODEL LIFEMODEL MODERATELY
AGGRESSIVE FUND SM AGGRESSIVE FUND SM
------------------------ -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a)(b) 2005
----------- -------- ----------- --------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 23,777 $ 24,902 $ 25,016 $ 35,699
Dividends reinvested 2,520 1,014 3,630 2,008
Shares redeemed (12,615) (16,721) (13,264) (20,044)
----------- -------- ----------- --------
Total Institutional Shares 13,682 9,195 15,382 17,663
----------- -------- ----------- --------
Class A Shares
Shares issued 6,064 13,179 13,038 37,035
Dividends reinvested 1,388 607 3,617 2,109
Shares redeemed (6,561) (10,978) (15,031) (21,154)
----------- -------- ----------- --------
Total Class A Shares 891 2,808 1,624 17,990
----------- -------- ----------- --------
Class B Shares
Shares issued 1,315 4,444 4,071 11,955
Dividends reinvested 413 148 1,300 518
Shares redeemed (1,567) (2,442) (3,726) (7,064)
----------- -------- ----------- --------
Total Class B Shares 161 2,150 1,645 5,409
----------- -------- ----------- --------
Class C Shares
Shares issued 493 761 923 3,453
Dividends reinvested 54 20 209 98
Shares redeemed (351) (795) (1,102) (3,489)
----------- -------- ----------- --------
Total Class C Shares 196 (14) 30 62
----------- -------- ----------- --------
Advisor Shares
Shares issued 103 NA 437 NA
Dividends reinvested -- ^ NA 7 NA
Shares redeemed -- NA (4) NA
----------- -------- ----------- --------
Total Advisor Shares 103 NA 440 NA
----------- -------- ----------- --------
Change from capital
transactions $ 15,033 $ 14,139 $ 19,121 $ 41,124
=========== ======== =========== ========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,653 1,868 1,793 2,705
Dividends reinvested 175 75 262 152
Shares redeemed (882) (1,234) (961) (1,513)
----------- -------- ----------- --------
Total Institutional Shares 946 709 1,094 1,344
----------- -------- ----------- --------
Class A Shares
Shares issued 426 1,002 946 2,859
Dividends reinvested 97 45 262 160
Shares redeemed (457) (824) (1,086) (1,610)
----------- -------- ----------- --------
Total Class A Shares 66 223 122 1,409
----------- -------- ----------- --------
Class B Shares
Shares issued 94 342 295 925
Dividends reinvested 29 11 94 39
Shares redeemed (112) (187) (270) (542)
----------- -------- ----------- --------
Total Class B Shares 11 166 119 422
----------- -------- ----------- --------
Class C Shares
Shares issued 35 59 67 266
Dividends reinvested 4 1 15 7
Shares redeemed (25) (62) (80) (268)
----------- -------- ----------- --------
Total Class C Shares 14 (2) 2 5
----------- -------- ----------- --------
Advisor Shares
Shares issued 7 NA 31 NA
Dividends reinvested -- ^ NA -- ^ NA
Shares redeemed -- NA -- ^ NA
----------- -------- ----------- --------
Total Advisor Shares 7 NA 31 NA
----------- -------- ----------- --------
Change from share transactions 1,044 1,096 1,368 3,180
=========== ======== =========== ========
LIFEMODEL LIFEMODEL MODERATELY
MODERATE FUND SM CONSERVATIVE FUND SM
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a)(b) 2005 2006 (a)(b) 2005
----------- -------- ----------- --------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 30,666 $ 62,059 $ 5,220 $ 9,260
Dividends reinvested 11,031 7,796 1,456 1,221
Shares redeemed (61,769) (70,750) (5,073) (12,191)
----------- -------- ----------- --------
Total Institutional Shares (20,072) (895) 1,603 (1,710)
----------- -------- ----------- --------
Class A Shares
Shares issued 10,869 31,945 4,809 8,736
Dividends reinvested 3,226 2,162 1,431 1,130
Shares redeemed (14,918) (34,525) (7,811) (11,563)
----------- -------- ----------- --------
Total Class A Shares (823) (418) (1,571) (1,697)
----------- -------- ----------- --------
Class B Shares
Shares issued 3,174 9,857 934 4,612
Dividends reinvested 1,163 543 706 462
Shares redeemed (4,094) (6,313) (2,084) (4,725)
----------- -------- ----------- --------
Total Class B Shares 243 4,087 (444) 349
----------- -------- ----------- --------
Class C Shares
Shares issued 801 3,077 275 1,608
Dividends reinvested 175 93 105 72
Shares redeemed (1,337) (3,300) (757) (1,439)
----------- -------- ----------- --------
Total Class C Shares (361) (130) (377) 241
----------- -------- ----------- --------
Advisor Shares
Shares issued 255 NA 65 NA
Dividends reinvested 2 NA 1 NA
Shares redeemed -- NA -- ^ NA
----------- -------- ----------- --------
Total Advisor Shares 257 NA 66 NA
----------- -------- ----------- --------
Change from capital
transactions $ (20,756) $ 2,644 $ (723) $ (2,817)
=========== ======== =========== ========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,462 5,175 455 824
Dividends reinvested 890 647 128 108
Shares redeemed (4,976) (5,880) (441) (1,080)
----------- -------- ----------- --------
Total Institutional Shares (1,624) (58) 142 (148)
----------- -------- ----------- --------
Class A Shares
Shares issued 873 2,680 418 782
Dividends reinvested 261 179 126 100
Shares redeemed (1,202) (2,883) (682) (1,038)
----------- -------- ----------- --------
Total Class A Shares (68) (24) (138) (156)
----------- -------- ----------- --------
Class B Shares
Shares issued 256 832 82 417
Dividends reinvested 94 45 62 41
Shares redeemed (331) (529) (182) (424)
----------- -------- ----------- --------
Total Class B Shares 19 348 (38) 34
----------- -------- ----------- --------
Class C Shares
Shares issued 65 258 24 144
Dividends reinvested 14 8 9 6
Shares redeemed (108) (278) (66) (129)
----------- -------- ----------- --------
Total Class C Shares (29) (12) (33) 21
----------- -------- ----------- --------
Advisor Shares
Shares issued 21 NA 6 NA
Dividends reinvested -- ^ NA -- ^ NA
Shares redeemed -- NA -- ^ NA
----------- -------- ----------- --------
Total Advisor Shares 21 NA 6 NA
----------- -------- ----------- --------
Change from share transactions (1,681) 254 (61) (249)
=========== ======== =========== ========
_________________
(a) Unaudited.
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares
SEE NOTES TO FINANCIAL STATEMENTS
122-123 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS,CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL
CONSERVATIVE FUND SM STRATEGIC INCOME FUND DIVIDEND GROWTH FUND
----------------------- ----------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) (b) 2005 2006 (a) 2005 2006 (a)(b)(c) 2005
----------- -------- ----------- -------- -------------- --------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 3,918 $ 12,957 $ 15,089 $ 24,974 $ 11,255 $ 503
Dividends reinvested 656 610 574 649 -- --
Shares redeemed (2,813) (5,952) (11,901) (21,877) (1,596) (2,518)
----------- -------- ----------- -------- -------------- --------
Total Institutional Shares 1,761 7,615 3,762 3,746 9,659 (2,015)
----------- -------- ----------- -------- -------------- --------
Class A Shares
Shares issued 1,191 9,897 1,896 3,984 213 865
Dividends reinvested 490 764 87 76 -- --
Shares redeemed (3,471) (11,653) (1,029) (652) (2,086) (4,122)
----------- -------- ----------- -------- -------------- --------
Total Class A Shares (1,790) (992) 954 3,408 (1,873) (3,257)
----------- -------- ----------- -------- -------------- --------
Class B Shares
Shares issued 385 2,138 492 1,573 45 25
Dividends reinvested 256 351 22 18 -- --
Shares redeemed (1,894) (3,641) (249) (96) (31) (200)
----------- -------- ----------- -------- -------------- --------
Total Class B Shares (1,253) (1,152) 265 1,495 14 (175)
----------- -------- ----------- -------- -------------- --------
Class C Shares
Shares issued 361 1,893 801 2,493 47 15
Dividends reinvested 83 152 424 957 -- --
Shares redeemed (1,618) (3,451) (6,097) (14,830) (114) (138)
----------- -------- ----------- -------- -------------- --------
Total Class C Shares (1,174) (1,406) (4,872) (11,380) (67) (123)
----------- -------- ----------- -------- -------------- --------
Advisor Shares
Shares issued 47 NA 1,335 4,501 13 NA
Dividends reinvested 1 NA 595 1,335 -- NA
Shares redeemed -- NA (8,658) (14,572) -- NA
----------- -------- ----------- -------- -------------- --------
Total Advisor Shares 48 NA (6,728) (8,736) 13 NA
----------- -------- ----------- -------- -------------- --------
Change from capital
transactions $ (2,408) $ 4,065 $ (6,619) $(11,467) $ 7,746 $ (5,570)
=========== ======== =========== ======== ============== ========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 360 1,199 1,329 2,176 525 25
Dividends reinvested 61 56 51 57 -- --
Shares redeemed (260) (551) (1,051) (1,908) (73) (125)
----------- -------- ----------- -------- -------------- --------
Total Institutional Shares 161 704 329 325 452 (100)
----------- -------- ----------- -------- -------------- --------
Class A Shares
Shares issued 110 925 167 348 10 47
Dividends reinvested 46 71 8 7 -- --
Shares redeemed (320) (1,083) (91) (57) (99) (214)
----------- -------- ----------- -------- -------------- --------
Total Class A Shares (164) (87) 84 298 (89) (167)
----------- -------- ----------- -------- -------------- --------
Class B Shares
Shares issued 36 199 43 137 2 1
Dividends reinvested 24 33 2 2 -- --
Shares redeemed (175) (339) (22) (8) -- (10)
----------- -------- ----------- -------- -------------- --------
Total Class B Shares (115) (107) 23 131 2 (9)
----------- -------- ----------- -------- -------------- --------
Class C Shares
Shares issued 33 177 71 220 2 1
Dividends reinvested 8 14 38 84 -- --
Shares redeemed (150) (322) (544) (1,308) (6) (8)
----------- -------- ----------- -------- -------------- --------
Total Class C Shares (109) (131) (435) (1,004) (4) (7)
----------- -------- ----------- -------- -------------- --------
Advisor Shares
Shares issued 4 NA 118 394 1 NA
Dividends reinvested -- ^ NA 53 117 -- NA
Shares redeemed -- NA (769) (1,279) -- NA
----------- -------- ----------- -------- -------------- --------
Total Advisor Shares 4 NA (598) (768) 1 NA
----------- -------- ----------- -------- -------------- --------
Change from share transactions (223) 379 (597) (1,018) 362 (283)
=========== ======== =========== ======== ============== ========
INTERNATIONAL
TECHNOLOGY FUND EQUITY FUND
------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
------------ -------- ----------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 6,745 $ 9,259 $ 125,357 $ 82,064
Dividends reinvested -- -- 11,562 2,185
Shares redeemed (4,906) (14,038) (50,593) (177,553)
----------- -------- ----------- ---------
Total Institutional Shares 1,839 (4,779) 86,326 (93,304)
----------- -------- ----------- ---------
Class A Shares
Shares issued 212 1,208 7,280 4,426
Dividends reinvested -- -- 805 384
Shares redeemed (1,553) (3,614) (2,862) (10,704)
----------- -------- ----------- ---------
Total Class A Shares (1,341) (2,406) 5,223 (5,894)
----------- -------- ----------- ---------
Class B Shares
Shares issued 27 121 267 503
Dividends reinvested -- -- 38 10
Shares redeemed (218) (573) (74) (154)
----------- -------- ----------- ---------
Total Class B Shares (191) (452) 231 359
----------- -------- ----------- ---------
Class C Shares
Shares issued 7 81 202 519
Dividends reinvested -- -- 33 6
Shares redeemed (187) (1,409) (173) (214)
----------- -------- ----------- ---------
Total Class C Shares (180) (1,328) 62 311
----------- -------- ----------- ---------
Advisor Shares
Shares issued 367 152 874 605
Dividends reinvested -- -- 315 175
Shares redeemed (56) (197) (4,759) (2,691)
----------- -------- ----------- ---------
Total Advisor Shares 311 (45) (3,570) (1,911)
----------- -------- ----------- ---------
Change from capital
transactions $ 438 $ (9,010) $ 88,272 $(100,439)
=========== ======== =========== =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 636 1,021 10,996 8,108
Dividends reinvested -- -- 994 211
Shares redeemed (474) (1,549) (4,340) (17,002)
----------- -------- ----------- ---------
Total Institutional Shares 162 (528) 7,650 (8,683)
----------- -------- ----------- ---------
Class A Shares
Shares issued 21 135 608 432
Dividends reinvested -- -- 69 37
Shares redeemed (152) (403) (246) (1,036)
----------- -------- ----------- ---------
Total Class A Shares (131) (268) 431 (567)
----------- -------- ----------- ---------
Class B Shares
Shares issued 3 14 24 48
Dividends reinvested -- -- 3 1
Shares redeemed (23) (68) (7) (15)
----------- -------- ----------- ---------
Total Class B Shares (20) (54) 20 34
----------- -------- ----------- ---------
Class C Shares
Shares issued -- ^ 9 18 51
Dividends reinvested -- -- 3 1
Shares redeemed (19) (164) (16) (21)
----------- -------- ----------- ---------
Total Class C Shares (19) (155) 5 31
----------- -------- ----------- ---------
Advisor Shares
Shares issued 33 17 76 58
Dividends reinvested -- -- 27 17
Shares redeemed (5) (22) (415) (260)
----------- -------- ----------- ---------
Total Advisor Shares 28 (5) (312) (185)
----------- -------- ----------- ---------
Change from share transactions 20 (1,010) 7,794 (9,370)
=========== ======== =========== =========
HIGH YIELD BOND FUND BOND FUND
----------------------- -----------------------
PERIOD SIX MONTHS YEAR
ENDED ENDED ENDED
JANUARY 31, JANUARY 31, JULY 31,
2006 (a) (b) 2006 (a) 2005
------------ ----------- ----------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 51,051 $ 16,738 $ 93,508
Dividends reinvested -- 3,016 3,033
Shares redeemed (1,015) (37,697) (83,909)
---------- ----------- ----------
Total Institutional Shares 50,036 (17,943) 12,632
---------- ----------- ----------
Class A Shares
Shares issued 55 447 2,296
Dividends reinvested -- 355 617
Shares redeemed -- (2,737) (9,750)
---------- ----------- ----------
Total Class A Shares 55 (1,935) (6,837)
---------- ----------- ----------
Class B Shares
Shares issued 10 73 253
Dividends reinvested -- 66 103
Shares redeemed -- (990) (988)
---------- ----------- ----------
Total Class B Shares 10 (851) (632)
---------- ----------- ----------
Class C Shares
Shares issued 10 4 79
Dividends reinvested -- 11 19
Shares redeemed -- (218) (223)
---------- ----------- ----------
Total Class C Shares 10 (203) (125)
---------- ----------- ----------
Advisor Shares
Shares issued 10 34 81
Dividends reinvested -- 9 18
Shares redeemed -- (215) (136)
---------- ----------- ----------
Total Advisor Shares 10 (172) (37)
---------- ----------- ----------
Change from capital
transactions $ 50,121 $ (21,104) $ 5,001
========== =========== ==========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 5,094 1,674 9,257
Dividends reinvested -- 304 299
Shares redeemed (101) (3,772) (8,263)
---------- ----------- ----------
Total Institutional Shares 4,993 (1,794) 1,293
---------- ----------- ----------
Class A Shares
Shares issued 6 45 226
Dividends reinvested -- 36 61
Shares redeemed -- (275) (962)
---------- ----------- ----------
Total Class A Shares 6 (194) (675)
---------- ----------- ----------
Class B Shares
Shares issued 1 7 25
Dividends reinvested -- 7 10
Shares redeemed -- (99) (97)
---------- ----------- ----------
Total Class B Shares 1 (85) (62)
---------- ----------- ----------
Class C Shares
Shares issued 1 -- ^ 8
Dividends reinvested -- 1 2
Shares redeemed -- (22) (23)
---------- ----------- ----------
Total Class C Shares 1 (21) (13)
---------- ----------- ----------
Advisor Shares
Shares issued 1 3 8
Dividends reinvested -- 1 2
Shares redeemed -- (22) (13)
---------- ----------- ----------
Total Advisor Shares 1 (18) (3)
---------- ----------- ----------
Change from share transactions 5,002 (2,112) 540
========== =========== ==========
____________________
(a) Unaudited.
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
(c) Formerly the Select Stock Fund.
(d) Reflects operations for the period from November 29, 2005 (date of
commencement of operations) to January 31, 2006.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
124-125 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
INTERMEDIATE BOND FUND SHORT TERM BOND FUND BOND FUND
------------------------- ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) (b) 2005 2006 (a) (b) 2005 2006 (a) (b) 2005
------------ --------- ------------ --------- ------------ ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 28,452 $ 78,453 $ 11,376 $ 113,038 $ 2,546 $ 7,325
Dividends reinvested 1,670 4,315 974 3,007 362 499
Shares redeemed (78,978) (208,267) (66,189) (268,049) (5,027) (18,374)
------------ --------- ------------ --------- ------------ ---------
Total Institutional Shares (48,856) (125,499) (53,839) (152,004) (2,119) (10,550)
------------ --------- ------------ --------- ------------ ---------
Class A Shares
Shares issued 736 2,719 538 3,235 275 1,411
Dividends reinvested 479 1,060 247 620 557 709
Shares redeemed (3,668) (11,082) (3,553) (14,513) (1,616) (5,978)
------------ --------- ------------ --------- ------------ ---------
Total Class A Shares (2,453) (7,303) (2,768) (10,658) (784) (3,858)
------------ --------- ------------ --------- ------------ ---------
Class B Shares
Shares issued 4 -- NA NA NA NA
Dividends reinvested 57 128 NA NA NA NA
Shares redeemed (621) (749) NA NA NA NA
------------ --------- ------------ --------- ------------ ---------
Total Class B Shares (560) (621) NA NA NA NA
------------ --------- ------------ --------- ------------ ---------
Class C Shares
Shares issued 114 193 17 206 40 205
Dividends reinvested 17 36 3 9 34 51
Shares redeemed (203) (738) (128) (368) (668) (1,665)
------------ --------- ------------ --------- ------------ ---------
Total Class C Shares (72) (509) (108) (153) (594) (1,409)
------------ --------- ------------ --------- ------------ ---------
Advisor Shares
Shares issued 3 NA 3 NA 3 NA
Dividends reinvested -- ^ NA -- ^ NA -- ^ NA
Shares redeemed -- NA -- NA -- NA
------------ --------- ------------ --------- ------------ ---------
Total Advisor Shares 3 NA 3 NA 3 NA
------------ --------- ------------ --------- ------------ ---------
Change from capital transactions $ (51,938) $(133,932) $ (56,712) $(162,815) $ (3,494) $ (15,817)
============ ========= ============ ========= ============ =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,924 7,923 1,217 11,863 254 721
Dividends reinvested 172 434 104 317 36 49
Shares redeemed (8,134) (20,921) (7,089) (28,302) (501) (1,804)
------------ --------- ------------ --------- ------------ ---------
Total Institutional Shares (5,038) (12,564) (5,768) (16,122) (211) (1,034)
------------ --------- ------------ --------- ------------ ---------
Class A Shares
Shares issued 75 271 58 341 27 139
Dividends reinvested 49 107 26 65 56 70
Shares redeemed (377) (1,112) (381) (1,534) (161) (588)
------------ --------- ------------ --------- ------------ ---------
Total Class A Shares (253) (734) (297) (1,128) (78) (379)
------------ --------- ------------ --------- ------------ ---------
Class B Shares
Shares issued -- ^ -- NA NA NA NA
Dividends reinvested 6 13 NA NA NA NA
Shares redeemed (64) (75) NA NA NA NA
------------ --------- ------------ --------- ------------ ---------
Total Class B Shares (58) (62) NA NA NA NA
------------ --------- ------------ --------- ------------ ---------
Class C Shares
Shares issued 12 19 2 22 4 20
Dividends reinvested 2 4 -- ^ 1 3 5
Shares redeemed (21) (74) (14) (39) (67) (164)
------------ --------- ------------ --------- ------------ ---------
Total Class C Shares (7) (51) (12) (16) (60) (139)
------------ --------- ------------ --------- ------------ ---------
Advisor Shares
Shares issued -- ^ NA -- ^ NA -- ^ NA
Dividends reinvested -- ^ NA -- ^ NA -- ^ NA
Shares redeemed -- NA -- NA -- NA
------------ --------- ------------ --------- ------------ ---------
Total Advisor Shares -- ^ NA -- ^ NA -- ^ NA
------------ --------- ------------ --------- ------------ ---------
Change from share transactions (5,356) (13,411) (6,077) (17,266) (349) (1,552)
============ ========= ============ ========= ============ =========
INTERMEDIATE MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
----------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) (b) 2005
----------- -------- ------------ --------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 2,926 $ 8,466 $ 3,741 $ 6,896
Dividends reinvested 2,031 2,120 2,391 1,920
Shares redeemed (9,445) (16,807) (24,390) (54,557)
----------- -------- ------------ --------
Total Institutional Shares (4,488) (6,221) (18,258) (45,741)
----------- -------- ------------ --------
Class A Shares
Shares issued 21 55 1 99
Dividends reinvested 63 96 67 119
Shares redeemed (97) (907) (180) (1,571)
----------- -------- ------------ --------
Total Class A Shares (13) (756) (112) (1,353)
------------ -------- ------------ --------
Class B Shares
Shares issued 16 175 -- --
Dividends reinvested 69 83 22 40
Shares redeemed (281) (258) (366) (302)
----------- -------- ------------ --------
Total Class B Shares (196) -- ^ (344) (262)
----------- -------- ------------ --------
Class C Shares
Shares issued 1 51 1 10
Dividends reinvested 5 15 3 9
Shares redeemed (37) (238) (70) (225)
----------- -------- ------------ --------
Total Class C Shares (31) (172) (66) (206)
----------- -------- ------------ --------
Advisor Shares
Shares issued -- 10 3 NA
Dividends reinvested 7 19 -- ^ NA
Shares redeemed (4) (70) -- NA
----------- -------- ------------ --------
Total Advisor Shares 3 (41) 3 NA
----------- -------- ------------ --------
Change from capital transactions $ (4,725) $ (7,190) $ (18,777) $(47,562)
=========== ======== ============ ========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 299 834 367 660
Dividends reinvested 213 209 237 182
Shares redeemed (968) (1,642) (2,393) (5,195)
----------- -------- ------------ --------
Total Institutional Shares (456) (599) (1,789) (4,353)
----------- -------- ------------ --------
Class A Shares
Shares issued 2 5 -- ^ 10
Dividends reinvested 7 9 7 11
Shares redeemed (10) (88) (18) (149)
----------- -------- ------------ --------
Total Class A Shares (1) (74) (11) (128)
----------- -------- ------------ --------
Class B Shares
Shares issued 2 17 -- --
Dividends reinvested 7 8 2 4
Shares redeemed (29) (25) (37) (29)
----------- -------- ------------ --------
Total Class B Shares (20) -- ^ (35) (25)
----------- -------- ------------ --------
Class C Shares
Shares issued -- ^ 5 -- ^ 1
Dividends reinvested 1 1 -- ^ 1
Shares redeemed (4) (23) (7) (22)
----------- -------- ------------ --------
Total Class C Shares (3) (17) (7) (20)
----------- -------- ------------ --------
Advisor Shares
Shares issued -- 1 -- ^ NA
Dividends reinvested -- ^ 2 -- ^ NA
Shares redeemed -- ^ (7) -- NA
----------- -------- ------------ --------
Total Advisor Shares -- ^ (4) -- ^ NA
----------- -------- ------------ --------
Change from share transactions (480) (694) (1,842) (4,526)
=========== ======== ============ ========
OHIO MUNICIPAL MICHIGAN MUNICIPAL
BOND FUND BOND FUND
------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) (b) 2005 2006 (a) (b) 2005
------------ -------- ------------ --------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 1,745 $ 2,429 $ 2,388 $ 5,241
Dividends reinvested 272 910 45 259
Shares redeemed (11,378) (23,611) (18,392) (35,599)
------------ -------- ------------ --------
Total Institutional Shares (9,361) (20,272) (15,959) (30,099)
------------ -------- ------------ --------
Class A Shares
Shares issued 282 4,818 752 19
Dividends reinvested 143 408 49 114
Shares redeemed (3,317) (3,892) (247) (2,641)
------------ -------- ------------ --------
Total Class A Shares (2,892) 1,334 554 (2,508)
------------- -------- ------------ --------
Class B Shares
Shares issued 20 109 -- 34
Dividends reinvested 52 117 4 14
Shares redeemed (532) (597) (355) (430)
------------ -------- ------------ --------
Total Class B Shares (460) (371) (351) (382)
------------ -------- ------------ --------
Class C Shares
Shares issued -- ^ 249 3 37
Dividends reinvested 29 108 3 14
Shares redeemed (2,477) (812) (188) (1,391)
------------ -------- ------------ --------
Total Class C Shares (2,448) (455) (182) (1,340)
------------ -------- ------------ --------
Advisor Shares
Shares issued 2 NA 3 NA
Dividends reinvested -- ^ NA -- ^ NA
Shares redeemed -- NA -- NA
------------ -------- ------------ --------
Total Advisor Shares 2 NA 3 NA
------------ -------- ------------ --------
Change from capital transactions $ (15,159) $(19,764) $ (15,935) $(34,329)
============ ======== ============ ========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 172 234 239 516
Dividends reinvested 27 88 4 26
Shares redeemed (1,120) (2,278) (1,842) (3,508)
------------ -------- ------------ --------
Total Institutional Shares (921) (1,956) (1,599) (2,966)
------------ -------- ------------ --------
Class A Shares
Shares issued 27 462 75 2
Dividends reinvested 14 39 5 11
Shares redeemed (325) (377) (26) (261)
------------ -------- ------------ --------
Total Class A Shares (284) 124 54 (248)
------------ -------- ------------ --------
Class B Shares
Shares issued 2 11 -- 3
Dividends reinvested 5 12 -- ^ 1
Shares redeemed (54) (59) (35) (42)
------------ -------- ------------ --------
Total Class B Shares (47) (36) (35) (38)
------------ -------- ------------ --------
Class C Shares
Shares issued -- ^ 24 -- ^ 4
Dividends reinvested 3 10 -- ^ 1
Shares redeemed (246) (77) (19) (137)
------------ -------- ------------ --------
Total Class C Shares (243) (43) (19) (132)
------------ -------- ------------ --------
Advisor Shares
Shares issued -- ^ NA -- ^ NA
Dividends reinvested -- ^ NA -- ^ NA
Shares redeemed -- NA -- NA
------------ -------- ------------ --------
Total Advisor Shares -- ^ NA -- ^ NA
------------ -------- ------------ --------
Change from share transactions (1,495) (1,911) (1,599) $ (3,384)
============ ======== ============ ========
__________________
(a) Unaudited.
(b) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to January 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares
SEE NOTES TO FINANCIAL STATEMENTS
126-127 Spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Fifth Third Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company established as a Massachusetts business trust. At January 31, 2006, the
Trust consisted of thirty-six separate investment portfolios, one of which is
not currently offered.
The accompanying financial statements and notes relate only to the following
Funds (individually the "Fund" and collectively the "Funds"):
PORTFOLIO NAME
Fifth Third Small Cap Growth Fund ("Small Cap Growth Fund")
Fifth Third Mid Cap Growth Fund ("Mid Cap Growth Fund")
Fifth Third Quality Growth Fund ("Quality Growth Fund")
Fifth Third Large Cap Core Fund ("Large Cap Core Fund")
Fifth Third Equity Index Fund ("Equity Index Fund")
Fifth Third Balanced Fund ("Balanced Fund")
Fifth Third Micro Cap Value Fund ("Micro Cap Value Fund")
Fifth Third Small Cap Value Fund ("Small Cap Value Fund")
Fifth Third Multi Cap Value Fund ("Multi Cap Value Fund")
Fifth Third Disciplined Large Cap Value Fund ("Disciplined Large Cap Value Fund")
Fifth Third LifeModel Aggressive Fund SM ("LifeModel Aggressive Fund SM")
Fifth Third LifeModel Moderately Aggressive Fund SM ("LifeModel Moderately Aggressive Fund SM")
Fifth Third LifeModel Moderate Fund SM ("LifeModel Moderate Fund SM")
Fifth Third LifeModel Moderately Conservative Fund SM ("LifeModel Moderately Conservative Fund SM")
Fifth Third LifeModel Conservative Fund SM ("LifeModel Conservative Fund SM")
Fifth Third Strategic Income Fund ("Strategic Income Fund")
Fifth Third Dividend Growth Fund ("Dividend Growth Fund") (Formerly the "Select Stock Fund")
Fifth Third Technology Fund ("Technology Fund")
Fifth Third International Equity Fund ("International Equity Fund")
Fifth Third High Yield Bond Fund ("High Yield Bond 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 four classes of
shares: Institutional Shares, Class A Shares, Class C Shares and Advisor 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
128
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
administrative services fees paid by Class C Shares, Select Shares, Preferred
Shares and Trust Shares, distribution services fees paid by Class A Shares,
Class B Shares, Class C Shares and Advisor Shares, voting rights on matters
affecting a single class of shares, and the exchange privileges of each class of
shares. 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) 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 the closing bid as supplied 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
129
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
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. Interest income is recognized on the accrual basis and includes,
where applicable, amortization of premium or accretion of discount. Dividend
income is recorded on the ex-dividend date. Gains or losses realized on sales of
securities are determined by comparing the identified cost of the security lot
sold with the net sales proceeds. Withholding taxes on foreign dividends have
been provided for in accordance with the applicable country's tax rules and
rates.
FOREIGN CURRENCY TRANSLATION--The International Equity Fund does not isolate
that portion of the results of operations resulting from changes in foreign
exchange rates on investments from the fluctuations arising from changes in the
market prices of securities held. Such fluctuations are included with the net
realized and unrealized gains or losses from investments.
Realized foreign exchange gains or losses arise from sales and maturities of
securities, sales of foreign currencies, currency exchange fluctuations between
the trade and settlement dates of securities transactions, and the difference
between the amount of assets and liabilities recorded and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the fair value of assets and
liabilities, including investments in securities, resulting from changes in the
currency exchange rates.
FORWARD CURRENCY CONTRACTS--The International Equity Fund may enter into forward
currency contracts ("forward"), which is an agreement between two parties to buy
and sell a currency at a set price on a future date. The market value of the
forward fluctuates with changes in currency exchange rates. The forward is
marked-to-market daily and the change in market value is recorded by a Fund as
unrealized appreciation or depreciation. When the forward is closed, the Fund
records a realized gain or loss equal to the difference between the value at the
time it was opened and the value at the time it was closed. The Fund could be
exposed to risk if a counterparty is unable to meet the terms of a forward or if
the value of the currency changes unfavorably.
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 Dividend Growth 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 $1,633,174 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.
130
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
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
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.
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 administrative and 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 High Yield
Bond Fund, Bond Fund, Intermediate Bond Fund, Short Term Bond Fund, U.S.
Government Bond Fund, Municipal Bond Fund, Intermediate Municipal Bond Fund,
Ohio Municipal Bond 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, Dividend Growth 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.
131
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
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.
(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: 0.70% for the Small Cap Growth Fund, Large Cap Core Fund and
High Yield Bond Fund, 0.80% for the Mid Cap Growth Fund, Quality Growth Fund,
Balanced Fund, Disciplined Large Cap Value Fund and Dividend Growth 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 Investment Management Inc. is the International Equity Fund's
Sub-Advisor. Fort Washington Investment Advisors, Inc. is the High Yield Bond
Fund's Sub-Advisor.The Advisor compensates the Sub-Advisors at a rate based on
the Fund's average daily net assets.
ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third"), 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 flat fee for each class in excess of four classes per
Fund, and each Fund is subject to an annual minimum fee. 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 Trust including providing certain administrative
personnel and services necessary to operate the Trust, for which it received
$825,187 in fees from Fifth Third during the six-month period ended January 31,
2006, computed as a percentage (up to 0.0145%) of the average daily net assets
of the Trust subject to certain minimums and reimbursement of certain expenses.
Under a Compliance Services Agreement between the Funds', Fifth Third, and BISYS
(the "CCO Agreement"), BISYS makes an employee available to serve as the Funds'
Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS also
provides infrastructure and support in implementing the written policies and
procedures comprising the Funds' compliance program, including support services
to the CCO. For the services provided under the CCO Agreement, the Funds pay
BISYS $200,000 per year. BISYS pays the salary and other compensation earned by
any such individuals as employees of BISYS.
132
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
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, 2005 through January 31, 2006 the expense limits and
the cumulative reimbursement that may potentially be made by the Funds is as
follows (Amounts in thousands):
LIFEMODEL
EQUITY LIFEMODEL MODERATELY LIFEMODEL
LARGE CAP INDEX AGGRESSIVE AGGRESSIVE MODERATE
CORE FUND FUND FUND SM FUND SM FUND SM
---------- ------------- ------------- ----------- ---------
Institutional Shares 0.92% 0.19% 0.08% 0.08% 0.08%
Class A Shares 1.17% 0.44% 0.33% 0.33% 0.33%
Class B Shares 1.92% 1.19% 1.08% 1.08% 1.08%
Class C Shares 1.92% 1.19% 1.08% 1.08% 1.08%
Advisor Shares 1.42% 0.69% 0.58% 0.58% 0.58%
Select Shares NA 0.27% NA NA NA
Preferred Shares NA 0.34% NA NA NA
Trust Shares NA 0.44% NA NA NA
Amount subject to recoupment
expiring on November 28, 2006. $ 28 $ 293 $ 98 $ 190 $ 288
LIFEMODEL
MODERATELY LIFEMODEL INTERNATIONAL HIGH YIELD MICHIGAN
CONSERVATIVE CONSERVATIVE EQUITY BOND MUNICIPAL
FUND SM FUND SM FUND FUND BOND FUND
------------ ------------- ------------- ----------- ----------
Institutional Shares 0.08% 0.08% 1.35% 0.74% 0.68%
Class A Shares 0.33% 0.33% 1.60% 0.99% 0.93%
Class B Shares 1.08% 1.08% 2.35% 1.74% 1.68%
Class C Shares 1.08% 1.08% 2.35% 1.74% 1.68%
Advisor Shares 0.58% 0.58% 1.85% 1.24% 0.93%
Select Shares NA NA NA NA NA
Preferred Shares NA NA NA NA NA
Trust Shares NA NA NA NA NA
Amount subject to recoupment
expiring on November 28, 2006. $ 73 $ 46 $ -- $ 38 $ 22
133
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
For the period from August 1, 2005 for the Dividend Growth Fund, through January
31, 2006, the expense limits currently in place and the cumulative reimbursement
that may potentially be made by the Fund is as follows (Amounts in thousands):
DIVIDEND GROWTH
FUND
---------------
Institutional Shares 0.73%
Class A Shares 0.98%
Class B Shares 1.73%
Class C Shares 1.73%
Advisor Shares 1.23%
Select Shares NA
Preferred Shares NA
Trust Shares NA
Amount subject to recoupment
expiring on November 28, 2008. $ 100
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's
principal distributor. Under the terms of the Plan, the Funds will compensate
the principal distributor from the net assets of the Funds' Class A Shares,
Class B Shares, Class C Shares and Advisor Shares to finance activities intended
to result in the sales of each Funds' shares. The Plan provides that the Funds
may incur distribution expenses up to 0.25% of the average daily net assets for
Class A Shares, up to 1.00% of the average daily net assets for Class B Shares,
up to 0.75% of the average daily net assets for Class C Shares and up to 0.50%
of the average daily net assets for Advisor Shares, annually, to compensate the
distributor. For the six-month period ended January 31, 2006, the Distributor
received $1,393,286 from commissions earned on sales of Class A Shares and
redemption of Class B Shares and Class C Shares, of which, the Distributor
re-allowed $1,338,036 to affiliated broker-dealers of the Funds.
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--BISYS Fund Services Ohio, Inc. ("BISYS
Ohio"), a wholly owned subsidiary of The BISYS Group, Inc., serves 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 $301,189 in fees for its services during the
six-month period ended January 31, 2006. Transfer agent fees are computed at
0.0195% of the average daily net assets of each Funds' shares up to $700
million, 0.017% of the average daily net assets of each Funds' shares between
$700 million and $1 billion, 0.0155% of the average daily net assets of each
Funds' shares between $1 billion and $2 billion and 0.013% of more than $2
billion of the average daily net assets of all Funds with the exception of the
Equity Index Fund, LifeModel Aggressive Fund SM, LifeModel Moderately Aggressive
Fund SM, LifeModel Moderate Fund SM, LifeModel Moderately Conservative Fund SM
and the LifeModel Conservative Fund SM. For the Equity Index Fund, LifeModel
Aggressive Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel Moderate
Fund SM, LifeModel Moderately Conservative Fund SM and the LifeModel
Conservative Fund SM, transfer
134
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
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 flat fee for each 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. In addition,
there shall be an annual flat fee for each additional class of shares per Fund
and each Fund is subject to an annual minimum fee. Pursuant to a separate
agreement with Fifth Third, BISYS Ohio performs sub-accounting services on
behalf of the Trust, for which it received $1,415,448 in fees from Fifth Third
during the six-month period ended January 31, 2006, computed as a percentage (up
to 0.015%) of the average daily net assets of each Fund plus annual flat fees
for each additional classes of shares per Fund and reimbursement of certain 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.
(4) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities for the
six-month period ended January 31, 2006, were as follows (Amounts in thousands):
PURCHASES SALES
----------- -----------
Small Cap Growth Fund $ 50,596 $ 117,810
Mid Cap Growth Fund 148,866 205,860
Quality Growth Fund 467,959 567,375
Large Cap Core Fund 89,352 104,255
Equity Index Fund 13,654 35,716
Balanced Fund 122,977 156,451
Micro Cap Value Fund 32,451 83,108
Small Cap Value Fund 42,383 69,047
Multi Cap Value Fund 71,709 125,418
Disciplined Large Cap Value Fund 117,531 140,042
LifeModel Aggressive Fund SM 26,318 11,256
LifeModel Moderately Aggressive Fund SM 57,429 42,375
LifeModel Moderate Fund SM 88,549 108,379
LifeModel Moderately Conservative Fund SM 18,206 21,148
LifeModel Conservative Fund SM 7,804 9,465
Strategic Income Fund 7,274 11,271
Dividend Growth Fund 17,149 7,683
Technology Fund 141,996 142,291
International Equity Fund 115,448 51,729
High Yield Bond Fund 53,361 3,957
Bond Fund 428,532 462,426
Intermediate Bond Fund 326,593 410,727
Short Term Bond Fund 70,514 111,143
U.S. Government Bond Fund 35,553 45,784
Municipal Bond Fund 19,195 25,711
Intermediate Municipal Bond Fund 52,269 66,358
Ohio Municipal Bond Fund 6,827 24,229
Michigan Municipal Bond Fund 1,602 17,667
135
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
Purchase and sales of long-term U.S. Government Securities for the six-month
period ended January 31, 2006, were as follows (Amounts in thousands):
PURCHASES SALES
---------- -----------
Balanced Fund $ 46,655 $ 51,486
Strategic Income Fund -- 58
Bond Fund 410,405 430,904
Intermediate Bond Fund 42,824 76,716
Short Term Bond Fund 13,240 32,447
U.S. Government Bond Fund 35,553 40,979
(5) 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 six-month period ended Januray 31, 2006.
(6) FEDERAL TAX INFORMATION
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
Dividend Growth 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
136
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
(7) CONCENTRATION OF CREDIT RISK
The International Equity Fund invests in equity and fixed income securities of
non-U.S. issuers. Although the Fund maintains a diversified investment
portfolio, the political or economic developments within a particular country or
region may have an adverse effect on the ability of domiciled issuers to meet
their obligations. Additionally, political or economic developments may have an
effect on the liquidity and volatility of portfolio securities and currency
holdings.
The Intermediate Municipal Bond Fund held a substantial amount of their assets
in debt obligations issued by the State of Michigan and their political
subdivisions, agencies and public authorities at January 31, 2006. 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.
137
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)
Six months ended 1/31/06+ $ 15.58 (0.06)@ 1.57 1.51 -- (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 15.17 (0.07)@ 1.52 1.45 -- (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 14.85 (0.13)@ 1.48 1.35 -- (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 14.86 (0.13)@ 1.49 1.36 -- (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 15.21 (0.09)@ 1.52 1.43 -- (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.19) $ 19.02 (0.38%)
1/01/01 to 7/31/01(c) (0.06) $ 17.86 (5.75%)*
Year ended 7/31/02 (0.56) $ 13.70 (20.80%)
Year ended 7/31/03 -- $ 15.90 16.06%
Year ended 7/31/04 (1.73) $ 15.48 7.31%
Year ended 7/31/05 (2.87) $ 15.58 20.81%
Six months ended 1/31/06+ (1.87) $ 15.22 10.87%*
- --------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 12/31/00 (0.19) $ 18.87 (0.59%)
1/01/01 to 7/31/01(c) (0.06) $ 17.71 (5.85%)*
Year ended 7/31/02 (0.56) $ 13.52 (21.15%)
Year ended 7/31/03 -- $ 15.65 15.75%
Year ended 7/31/04 (1.73) $ 15.18 7.16%
Year ended 7/31/05 (2.87) $ 15.17 20.45%
Six months ended 1/31/06+ (1.87) $ 14.75 10.69%*
- --------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.56) $ 13.59 (13.01%)*
Year ended 7/31/03 -- $ 15.61 14.86%
Year ended 7/31/04 (1.73) $ 15.02 6.30%
Year ended 7/31/05 (2.87) $ 14.85 19.51%
Six months ended 1/31/06+ (1.87) $ 14.33 10.31%*
- --------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.56) $ 13.59 (13.01%)*
Year ended 7/31/03 -- $ 15.62 14.94%
Year ended 7/31/04 (1.73) $ 15.03 6.29%
Year ended 7/31/05 (2.87) $ 14.86 19.57%
Six months ended 1/31/06+ (1.87) $ 14.35 10.29%*
- --------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.56) $ 13.64 (12.69%)*
Year ended 7/31/03 -- $ 15.75 15.47%
Year ended 7/31/04 (1.73) $ 15.25 6.84%
Year ended 7/31/05 (2.87) $ 15.21 20.13%
Six months ended 1/31/06+ (1.87) $ 14.77 10.59%*
- --------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $804,758 0.91% (0.11%) 0.92% 28%
1/01/01 to 7/31/01(c) $724,275 0.93%** (0.16%)** 0.93%** 13%
Year ended 7/31/02 $485,623 0.93% (0.21%) 0.96% 25%
Year ended 7/31/03 $391,934 0.93% (0.16%) 0.98% 63%
Year ended 7/31/04 $223,439 1.00% (0.72%) 1.00% 95%
Year ended 7/31/05 $213,892 1.01% (0.68%) 1.01% 65%
Six months ended 1/31/06+ $165,742 1.02%** (0.78%)** 1.02%** 26%
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 12/31/00 $ 25,231 1.16% (0.36%) 1.17% 28%
1/01/01 to 7/31/01(c) $ 21,481 1.18%** (0.41%)** 1.18%** 13%
Year ended 7/31/02 $ 16,468 1.18% (0.46%) 1.21% 25%
Year ended 7/31/03 $ 16,471 1.19% (0.42%) 1.23% 63%
Year ended 7/31/04 $ 25,921 1.25% (0.99%) 1.25% 95%
Year ended 7/31/05 $ 22,714 1.26% (0.93%) 1.26% 65%
Six months ended 1/31/06+ $ 21,457 1.27%** (1.03%)** 1.27%** 26%
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 872 1.93%** (1.25%)** 1.98%** 25%
Year ended 7/31/03 $ 1,407 1.94% (1.17%) 1.98% 63%
Year ended 7/31/04 $ 1,784 2.00% (1.74%) 2.00% 95%
Year ended 7/31/05 $ 1,805 2.01% (1.68%) 2.01% 65%
Six months ended 1/31/06+ $ 1,780 2.02%** (1.78%)** 2.02%** 26%
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 346 1.93%** (1.26%)** 1.97%** 25%
Year ended 7/31/03 $ 436 1.93% (1.16%) 1.98% 63%
Year ended 7/31/04 $ 810 2.00% (1.74%) 2.00% 95%
Year ended 7/31/05 $ 618 2.01% (1.68%) 2.01% 65%
Six months ended 1/31/06+ $ 584 2.02%** (1.78%)** 2.02%** 26%
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 220 1.43%** (0.74%)** 1.48%** 25%
Year ended 7/31/03 $ 469 1.44% (0.66%) 1.48% 63%
Year ended 7/31/04 $ 1,173 1.51% (1.26%) 1.51% 95%
Year ended 7/31/05 $ 1,195 1.51% (1.18%) 1.51% 65%
Six months ended 1/31/06+ $ 878 1.52%** (1.27%)** 1.52%** 26%
- ------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
138-139 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- -------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $16.03 (0.01) 1.89 1.88 (0.02) (0.19)
- -------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $15.69 (0.03) 1.85 1.82 (0.01) (0.19)
- -------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $15.16 (0.09) 1.78 1.69 -- (0.19)
- -------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $14.61 (0.09) 1.73 1.64 -- (0.19)
- -------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $15.56 (0.05) 1.83 1.78 -- (0.19)
- -------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (2.49) $ 15.10 (9.94%)
Year ended 7/31/02 (0.47) $ 10.24 (30.02%)
Year ended 7/31/03 -- $ 12.02 17.38%
Year ended 7/31/04 -- $ 12.96 7.82%
Year ended 7/31/05 -- $ 16.03 23.69%
Six months ended 1/31/06+ (0.21) $ 17.70 11.82%*
- --------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/01 (2.49) $ 14.94 (10.18%)
Year ended 7/31/02 (0.47) $ 10.11 (30.21%)
Year ended 7/31/03 -- $ 11.82 17.03%
Year ended 7/31/04 -- $ 12.72 7.61%
Year ended 7/31/05 -- $ 15.69 23.35%
Six months ended 1/31/06+ (0.20) $ 17.31 11.69%*
- --------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (2.49) $ 14.86 (4.46%)*
Year ended 7/31/02 (0.47) $ 9.98 (30.65%)
Year ended 7/31/03 -- $ 11.59 16.13%
Year ended 7/31/04 -- $ 12.38 6.82%
Year ended 7/31/05 -- $ 15.16 22.46%
Six months ended 1/31/06+ (0.19) $ 16.66 11.26%*
- --------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/01 (2.49) $ 14.36 (10.95%)
Year ended 7/31/02 (0.47) $ 9.63 (30.67%)
Year ended 7/31/03 -- $ 11.17 15.99%
Year ended 7/31/04 -- $ 11.94 6.89%
Year ended 7/31/05 -- $ 14.61 22.36%
Six months ended 1/31/06+ (0.19) $ 16.06 11.34%*
- --------------------------------------------------------------------------------------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.47) $ 10.09 (19.75%)*
Year ended 7/31/03 -- $ 11.78 16.75%
Year ended 7/31/04 -- $ 12.65 7.39%
Year ended 7/31/05 -- $ 15.56 23.00%
Six months ended 1/31/06+ (0.19) $ 17.15 11.55%*
- --------------------------------------------------------------------------------------
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)
- ------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $255,634 1.02% (0.24%) 1.06% 26%
Year ended 7/31/02 $207,807 1.12% (0.49%) 1.14% 27%
Year ended 7/31/03 $335,285 1.10% (0.65%) 1.10% 25%
Year ended 7/31/04 $335,815 1.09% (0.68%) 1.09% 83%
Year ended 7/31/05 $392,929 1.09% (0.03%) 1.09% 54%
Six months ended 1/31/06+ $361,089 1.08%** (0.13%)** 1.08%** 37%
- -----------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/01 $ 41,278 1.28% (0.49%) 1.32% 26%
Year ended 7/31/02 $ 30,165 1.36% (0.74%) 1.39% 27%
Year ended 7/31/03 $ 35,504 1.35% (0.89%) 1.35% 25%
Year ended 7/31/04 $ 49,586 1.34% (0.93%) 1.34% 83%
Year ended 7/31/05 $ 41,921 1.34% (0.29%) 1.34% 54%
Six months ended 1/31/06+ $ 41,224 1.33%** (0.37%)** 1.33%** 37%
- -----------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 3,757 2.05%** (1.24%)** 2.09%** 26%
Year ended 7/31/02 $ 5,008 2.12% (1.51%) 2.15% 27%
Year ended 7/31/03 $ 5,846 2.10% (1.64%) 2.10% 25%
Year ended 7/31/04 $ 6,730 2.09% (1.68%) 2.09% 83%
Year ended 7/31/05 $ 6,874 2.09% (1.03%) 2.09% 54%
Six months ended 1/31/06+ $ 7,219 2.08%** (1.13%)** 2.08%** 37%
- -----------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/01 $ 1,410 1.99% (1.20%) 2.15% 26%
Year ended 7/31/02 $ 1,061 2.12% (1.49%) 2.14% 27%
Year ended 7/31/03 $ 1,525 2.10% (1.64%) 2.10% 25%
Year ended 7/31/04 $ 1,700 2.09% (1.68%) 2.09% 83%
Year ended 7/31/05 $ 1,600 2.09% (1.03%) 2.09% 54%
Six months ended 1/31/06+ $ 1,492 2.08%** (1.11%)** 2.08%** 37%
- -----------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 145 1.68%** (1.06%)** 1.71%** 27%
Year ended 7/31/03 $ 240 1.60% (1.14%) 1.60% 25%
Year ended 7/31/04 $ 962 1.59% (1.17%) 1.59% 83%
Year ended 7/31/05 $ 1,218 1.59% (0.52%) 1.59% 54%
Six months ended 1/31/06+ $ 1,064 1.58%** (0.61%)** 1.58%** 37%
- -----------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
140-141 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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) --
Six months ended 1/31/06+ $ 16.34 (0.02) 0.79 0.77 -- --
- -------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 16.05 (0.04) 0.78 0.74 -- --
- -------------------------------------------------------------------------------------------------------------------------------
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 --^ --
Six months ended 1/31/06+ $ 15.52 (0.10) 0.76 0.66 -- --
- -------------------------------------------------------------------------------------------------------------------------------
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 --^ --
Six months ended 1/31/06+ $ 15.12 (0.10) 0.74 0.64 -- --
- -------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 15.92 (0.07) 0.78 0.71 -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (2.91) $18.48 (19.93%)
Year ended 7/31/02 (0.59) $12.91 (27.90%)
Year ended 7/31/03 --^ $14.23 10.23%
Year ended 7/31/04 -- $14.61 2.67%
Year ended 7/31/05 (0.04) $16.34 12.13%
Six months ended 1/31/06+ -- $17.11 4.71%*
- --------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/01 (2.91) $18.33 (20.16%)
Year ended 7/31/02 (0.59) $12.77 (28.08%)
Year ended 7/31/03 -- $14.04 9.95%
Year ended 7/31/04 -- $14.38 2.42%
Year ended 7/31/05 (0.03) $16.05 11.83%
Six months ended 1/31/06+ -- $16.79 4.61%*
- --------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (2.91) $18.23 (24.58%)*
Year ended 7/31/02 (0.59) $12.60 (28.63%)
Year ended 7/31/03 -- $13.75 9.13%
Year ended 7/31/04 -- $13.99 1.75%
Year ended 7/31/05 --^ $15.52 10.95%
Six months ended 1/31/06+ -- $16.18 4.25%*
- --------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/01 (2.91) $17.78 (20.71%)
Year ended 7/31/02 (0.59) $12.28 (28.62%)
Year ended 7/31/03 -- $13.40 9.12%
Year ended 7/31/04 -- $13.63 1.72%
Year ended 7/31/05 --^ $15.12 10.95%
Six months ended 1/31/06+ -- $15.76 4.23%*
- --------------------------------------------------------------------------------------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.59) $12.75 (19.05%)*
Year ended 7/31/03 -- $13.98 9.65%
Year ended 7/31/04 -- $14.29 2.22%
Year ended 7/31/05 (0.02) $15.92 11.57%
Six months ended 1/31/06+ -- $16.63 4.46%*
- --------------------------------------------------------------------------------------
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)
- ------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $ 716,251 1.02% (0.22%) 1.02% 20%
Year ended 7/31/02 $ 566,235 1.09% (0.24%) 1.09% 20%
Year ended 7/31/03 $ 795,988 1.08% 0.05% 1.08% 19%
Year ended 7/31/04 $ 882,256 1.07% (0.24%) 1.07% 35%
Year ended 7/31/05 $ 707,766 1.08% 0.16% 1.08% 71%
Six months ended 1/31/06+ $ 682,632 1.08%** (0.20%)** 1.08%** 55%
- ------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/01 $ 340,596 1.28% (0.46%) 1.28% 20%
Year ended 7/31/02 $ 221,972 1.34% (0.49%) 1.34% 20%
Year ended 7/31/03 $ 211,221 1.33% (0.19%) 1.33% 19%
Year ended 7/31/04 $ 220,904 1.32% (0.49%) 1.32% 35%
Year ended 7/31/05 $ 165,836 1.33% (0.08%) 1.33% 71%
Six months ended 1/31/06+ $ 143,131 1.33%** (0.44%)** 1.33%** 55%
- ------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 14,531 2.05%** (1.22%)** 2.05%** 20%
Year ended 7/31/02 $ 19,678 2.10% (1.25%) 2.10% 20%
Year ended 7/31/03 $ 20,700 2.08% (0.94%) 2.08% 19%
Year ended 7/31/04 $ 20,947 2.07% (1.24%) 2.07% 35%
Year ended 7/31/05 $ 17,791 2.08% (0.85%) 2.08% 71%
Six months ended 1/31/06+ $ 16,253 2.08%** (1.19%)** 2.08%** 55%
- ------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/01 $ 11,687 1.98% (1.17%) 2.11% 20%
Year ended 7/31/02 $ 8,044 2.09% (1.24%) 2.09% 20%
Year ended 7/31/03 $ 8,380 2.08% (0.94%) 2.08% 19%
Year ended 7/31/04 $ 7,536 2.07% (1.24%) 2.07% 35%
Year ended 7/31/05 $ 5,238 2.08% (0.83%) 2.08% 71%
Six months ended 1/31/06+ $ 4,188 2.08%** (1.19%)** 2.08%** 55%
- ------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 366 1.69%** (0.80%)** 1.69%** 20%
Year ended 7/31/03 $ 1,205 1.58% (0.48%) 1.58% 19%
Year ended 7/31/04 $ 3,127 1.57% (0.75%) 1.57% 35%
Year ended 7/31/05 $ 3,257 1.58% (0.38%) 1.58% 71%
Six months ended 1/31/06+ $ 2,511 1.58%** (0.68%)** 1.58%** 55%
- ------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
142-143 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 14.61 0.09 0.64 0.73 (0.09) (0.18)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 14.42 0.07 0.63 0.70 (0.07) (0.18)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 14.46 0.01 0.64 0.65 (0.03) (0.18)
- -------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $ 14.46 0.01 0.65 0.66 (0.03) (0.18)
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 14.61 0.05 0.65 0.70 (0.06) (0.18)
- -------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (1.41) $ 16.84 (11.25%)
1/1/01 to 7/31/01(c) (0.27) $ 15.17 (8.24%)*
Year ended 7/31/02 (0.39) $ 11.20 (24.07%)
Year ended 7/31/03 (0.11) $ 11.84 6.79%
Year ended 7/31/04 (0.12) $ 13.20 12.50%
Year ended 7/31/05 (0.53) $ 14.61 14.92%
Six months ended 1/31/06+ (0.27) $ 15.07 5.02%*
- -------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 12/31/00 (1.36) $ 16.69 (11.47%)
1/1/01 to 7/31/01(c) (0.27) $ 15.02 (8.36%)*
Year ended 7/31/02 (0.38) $ 11.07 (24.25%)
Year ended 7/31/03 (0.09) $ 11.70 6.56%
Year ended 7/31/04 (0.09) $ 13.04 12.21%
Year ended 7/31/05 (0.49) $ 14.42 14.58%
Six months ended 1/31/06+ (0.25) $ 14.87 4.87%*
- -------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.35) $ 11.12 (15.86%)*
Year ended 7/31/03 (0.02) $ 11.75 5.90%
Year ended 7/31/04 (0.01) $ 13.08 11.47%
Year ended 7/31/05 (0.40) $ 14.46 13.67%
Six months ended 1/31/06+ (0.21) $ 14.90 4.51%*
- -------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.34) $ 11.15 (15.66%)*
Year ended 7/31/03 (0.03) $ 11.76 5.72%
Year ended 7/31/04 (0.02) $ 13.08 11.38%
Year ended 7/31/05 (0.39) $ 14.46 13.73%
Six months ended 1/31/06+ (0.21) $ 14.91 4.57%*
- -------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.24) $ 15.07 4.75%*
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ---------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $624,860 0.91% 0.35% 0.92% 14%
1/1/01 to 7/31/01(c) $547,524 0.93%** 0.40%** 0.94%** 5%
Year ended 7/31/02 $520,727 0.93% 0.64% 0.97% 5%
Year ended 7/31/03 $181,278 0.92% 0.99% 0.99% 13%
Year ended 7/31/04 $ 90,222 0.92% 0.84% 1.04% 101%
Year ended 7/31/05 $169,723 0.92% 1.17% 1.05% 102%
Six months ended 1/31/06+ $165,241 0.92%** 1.19%** 1.00%** 48%
- ---------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 12/31/00 $ 47,847 1.16% 0.10% 1.17% 14%
1/1/01 to 7/31/01(c) $ 38,659 1.18%** 0.15%** 1.19%** 5%
Year ended 7/31/02 $ 23,320 1.18% 0.38% 1.22% 5%
Year ended 7/31/03 $ 21,288 1.17% 0.72% 1.24% 13%
Year ended 7/31/04 $ 25,573 1.17% 0.58% 1.29% 101%
Year ended 7/31/05 $ 24,026 1.17% 0.99% 1.31% 102%
Six months ended 1/31/06+ $ 22,929 1.17%** 0.94%** 1.25%** 48%
- ---------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 361 1.93%** (0.36%)** 1.99%** 5%
Year ended 7/31/03 $ 557 1.92% (0.05%) 1.98% 13%
Year ended 7/31/04 $ 783 1.92% (0.17%) 2.04% 101%
Year ended 7/31/05 $ 1,007 1.92% 0.18% 2.06% 102%
Six months ended 1/31/06+ $ 1,029 1.92%** 0.17%** 2.00%** 48%
- ---------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 20 1.90%** (0.12%)** 1.97%** 5%
Year ended 7/31/03 $ 29 1.92% (0.04%) 1.99% 13%
Year ended 7/31/04 $ 158 1.92% (0.23%) 2.03% 101%
Year ended 7/31/05 $ 193 1.92% 0.21% 2.06% 102%
Six months ended 1/31/06+ $ 184 1.92%** 0.17%** 2.01%** 48%
- ---------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.42%** 0.68%** 1.50%** 48%
- ---------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
144-145 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.46 0.21 0.86 1.07 (0.22) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.38 0.17 0.87 1.04 (0.19) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.24 0.09 0.86 0.95 (0.11) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.26 0.09 0.85 0.94 (0.11) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.35 0.15 0.86 1.01 (0.16) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.45 0.19 0.87 1.06 (0.21) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.45 0.19 0.86 1.05 (0.20) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 23.45 0.18 0.86 1.04 (0.19) --
- ---------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.54) $ 25.18 (9.30%)
1/1/01 to 7/31/01(c) (0.11) $ 23.11 (7.83%)*
Year ended 7/31/02 (0.22) $ 17.42 (23.82%)
Year ended 7/31/03 (0.24) $ 18.93 10.22%
Year ended 7/31/04 (0.33) $ 21.01 12.75%
Year ended 7/31/05 (0.44) $ 23.46 13.86%
Six months ended 1/31/06+ (0.22) $ 24.31 4.59%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
Year ended 12/31/00 (0.47) $ 25.20 (9.52%)
1/1/01 to 7/31/01(c) (0.10) $ 23.10 (7.94%)*
Year ended 7/31/02 (0.20) $ 17.38 (24.03%)
Year ended 7/31/03 (0.21) $ 18.87 9.90%
Year ended 7/31/04 (0.28) $ 20.94 12.48%
Year ended 7/31/05 (0.39) $ 23.38 13.58%
Six months ended 1/31/06+ (0.19) $ 24.23 4.48%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.12) $ 17.32 (15.32%)*
Year ended 7/31/03 (0.11) $ 18.78 9.14%
Year ended 7/31/04 (0.13) $ 20.83 11.64%
Year ended 7/31/05 (0.23) $ 23.24 12.74%
Six months ended 1/31/06+ (0.11) $ 24.08 4.03%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.11) $ 17.33 (15.30%)*
Year ended 7/31/03 (0.12) $ 18.78 9.14%
Year ended 7/31/04 (0.13) $ 20.84 11.66%
Year ended 7/31/05 (0.22) $ 23.26 12.72%
Six months ended 1/31/06+ (0.11) $ 24.09 4.03%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.14) $ 17.39 (14.89%)*
Year ended 7/31/03 (0.19) $ 18.86 9.68%
Year ended 7/31/04 (0.24) $ 20.92 12.21%
Year ended 7/31/05 (0.33) $ 23.35 13.28%
Six months ended 1/31/06+ (0.16) $ 24.20 4.33%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND SELECT SHARES
10/20/03(d) to 7/31/04 (0.26) $ 21.00 7.03%*
Year ended 7/31/05 (0.43) $ 23.45 13.79%
Six months ended 1/31/06+ (0.21) $ 24.30 4.56%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03(d) to 7/31/04 (0.25) $ 21.01 7.03%*
Year ended 7/31/05 (0.40) $ 23.45 13.62%
Six months ended 1/31/06+ (0.20) $ 24.30 4.52%*
- ---------------------------------------------------------------------------------
EQUITY INDEX FUND TRUST SHARES
10/20/03(d) to 7/31/04 (0.23) $ 21.01 6.95%*
Year ended 7/31/05 (0.39) $ 23.45 13.53%
Six months ended 1/31/06+ (0.19) $ 24.30 4.46%*
- ---------------------------------------------------------------------------------
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)
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $860,647 0.40% 0.80% 0.53% 9%
1/1/01 to 7/31/01(c) $822,909 0.40%** 0.86%** 0.53%** 4%
Year ended 7/31/02 $608,556 0.41% 1.06% 0.56% 9%
Year ended 7/31/03 $583,530 0.40% 1.42% 0.58% 2%
Year ended 7/31/04 $193,734 0.27% 1.43% 0.58% 14%
Year ended 7/31/05 $168,279 0.19% 1.97% 0.62% 4%
Six months ended 1/31/06+ $166,799 0.19%** 1.73%** 0.60%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
Year ended 12/31/00 $ 38,930 0.65% 0.55% 0.78% 9%
1/1/01 to 7/31/01(c) $ 33,765 0.65%** 0.61%** 0.78%** 4%
Year ended 7/31/02 $ 24,817 0.66% 0.81% 0.81% 9%
Year ended 7/31/03 $ 33,402 0.65% 1.16% 0.83% 2%
Year ended 7/31/04 $ 72,944 0.47% 1.19% 0.86% 14%
Year ended 7/31/05 $ 70,261 0.44% 1.69% 0.87% 4%
Six months ended 1/31/06+ $ 70,708 0.44%** 1.48%** 0.85%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 1,315 1.40%** 0.08%** 1.57%** 9%
Year ended 7/31/03 $ 2,409 1.40% 0.40% 1.57% 2%
Year ended 7/31/04 $ 3,776 1.23% 0.44% 1.60% 14%
Year ended 7/31/05 $ 4,399 1.19% 0.93% 1.63% 4%
Six months ended 1/31/06+ $ 4,601 1.19%** 0.73%** 1.60%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 635 1.41%** 0.11%** 1.58%** 9%
Year ended 7/31/03 $ 1,711 1.40% 0.39% 1.57% 2%
Year ended 7/31/04 $ 1,990 1.23% 0.44% 1.60% 14%
Year ended 7/31/05 $ 2,301 1.19% 0.90% 1.63% 4%
Six months ended 1/31/06+ $ 2,354 1.19%** 0.73%** 1.60%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 7 0.82%** 0.62%** 0.88%** 9%
Year ended 7/31/03 $ 327 0.90% 0.84% 1.06% 2%
Year ended 7/31/04 $ 1,296 0.71% 0.94% 1.11% 14%
Year ended 7/31/05 $ 1,928 0.69% 1.40% 1.13% 4%
Six months ended 1/31/06+ $ 1,510 0.69%** 1.24%** 1.10%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND SELECT SHARES
10/20/03(d) to 7/31/04 $ 14,315 0.27%** 1.32%** 0.69%** 14%
Year ended 7/31/05 $ 18,690 0.27% 1.83% 0.71% 4%
Six months ended 1/31/06+ $ 17,515 0.27%** 1.64%** 0.68%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03(d) to 7/31/04 $165,845 0.34%** 1.31%** 0.76%** 14%
Year ended 7/31/05 $ 78,132 0.34% 1.98% 0.77% 4%
Six months ended 1/31/06+ $ 74,982 0.34%** 1.58%** 0.75%** 3%
- ------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND TRUST SHARES
10/20/03(d) to 7/31/04 $ 80,759 0.44%** 1.22%** 0.86%** 14%
Year ended 7/31/05 $ 76,295 0.44% 1.69% 0.87% 4%
Six months ended 1/31/06+ $ 72,588 0.44%** 1.48%** 0.85%** 3%
- ------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
146-147 Spread
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) --
Six months ended 1/31/06+ $ 12.79 0.13 0.05 0.18 (0.11) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 12.71 0.11 0.06 0.17 (0.09) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 12.57 0.05 0.06 0.11 (0.04) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 12.55 0.05 0.06 0.11 (0.04) --
- ---------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 12.68 0.10 0.06 0.16 (0.08) --
- ---------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------
BALANCED FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (2.21) $ 13.39 (11.64%)
Year ended 7/31/02(e) (0.35) $ 10.91 (16.34%)
Year ended 7/31/03 (0.17) $ 11.38 5.94%
Year ended 7/31/04 (0.15) $ 12.00 6.76%
Year ended 7/31/05 (0.25) $ 12.79 8.73%
Six months ended 1/31/06+ (0.11) $ 12.86 1.40%*
- ---------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
Year ended 7/31/01 (2.20) $ 13.35 (11.84%)
Year ended 7/31/02(e) (0.34) $ 10.86 (16.53%)
Year ended 7/31/03 (0.15) $ 11.32 5.57%
Year ended 7/31/04 (0.12) $ 11.93 6.52%
Year ended 7/31/05 (0.22) $ 12.71 8.41%
Six months ended 1/31/06+ (0.09) $ 12.79 1.36%*
- ---------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (2.15) $ 13.28 (8.14%)*
Year ended 7/31/02(e) (0.31) $ 10.75 (17.14%)
Year ended 7/31/03 (0.08) $ 11.19 4.87%
Year ended 7/31/04 (0.03) $ 11.80 5.72%
Year ended 7/31/05 (0.13) $ 12.57 7.61%
Six months ended 1/31/06+ (0.04) $ 12.64 0.90%*
- ---------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
Year ended 7/31/01 (2.17) $ 13.26 (12.47%)
Year ended 7/31/02(e) (0.31) $ 10.73 (17.16%)
Year ended 7/31/03 (0.08) $ 11.17 4.90%
Year ended 7/31/04 (0.03) $ 11.78 5.71%
Year ended 7/31/05 (0.13) $ 12.55 7.62%
Six months ended 1/31/06+ (0.04) $ 12.62 0.91%*
- ---------------------------------------------------------------------------------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) (0.31) $ 10.84 (9.24%)*
Year ended 7/31/03 (0.13) $ 11.30 5.39%
Year ended 7/31/04 (0.09) $ 11.91 6.31%
Year ended 7/31/05 (0.19) $ 12.68 8.08%
Six months ended 1/31/06+ (0.08) $ 12.76 1.23%*
- ---------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------
BALANCED FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $211,221 1.01% 1.48% 1.07% 77%
Year ended 7/31/02(e) $189,730 1.10% 1.11% 1.13% 78%
Year ended 7/31/03 $177,052 1.10% 1.39% 1.12% 133%
Year ended 7/31/04 $ 98,282 1.13% 1.07% 1.13% 166%
Year ended 7/31/05 $ 59,868 1.02% 1.89% 1.18% 146%
Six months ended 1/31/06+ $ 48,213 0.98%** 1.81%** 1.20%** 109%
- ------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
Year ended 7/31/01 $106,275 1.26% 1.23% 1.32% 77%
Year ended 7/31/02(e) $ 81,079 1.34% 0.86% 1.38% 78%
Year ended 7/31/03 $ 73,287 1.35% 1.14% 1.37% 133%
Year ended 7/31/04 $ 74,231 1.38% 0.79% 1.38% 166%
Year ended 7/31/05 $ 59,274 1.27% 1.63% 1.44% 146%
Six months ended 1/31/06+ $ 47,643 1.23%** 1.56%** 1.45%** 109%
- ------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 10,239 2.03%** 0.42%** 2.09%** 77%
Year ended 7/31/02(e) $ 14,007 2.10% 0.10% 2.14% 78%
Year ended 7/31/03 $ 13,972 2.10% 0.39% 2.12% 133%
Year ended 7/31/04 $ 13,117 2.13% 0.05% 2.13% 166%
Year ended 7/31/05 $ 10,957 2.02% 0.86% 2.19% 146%
Six months ended 1/31/06+ $ 9,356 1.98%** 0.81%** 2.20%** 109%
- ------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
Year ended 7/31/01 $ 6,883 1.96% 0.53% 2.15% 77%
Year ended 7/31/02(e) $ 4,963 2.09% 0.11% 2.13% 78%
Year ended 7/31/03 $ 5,747 2.10% 0.38% 2.12% 133%
Year ended 7/31/04 $ 4,731 2.13% 0.05% 2.13% 166%
Year ended 7/31/05 $ 4,046 2.02% 0.85% 2.19% 146%
Six months ended 1/31/06+ $ 3,389 1.98%** 0.81%** 2.20%** 109%
- ------------------------------------------------------------------------------------------------------------------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) $ 38 1.63%** 0.55%** 1.68%** 78%
Year ended 7/31/03 $ 104 1.60% 0.82% 1.61% 133%
Year ended 7/31/04 $ 176 1.64% 0.52% 1.64% 166%
Year ended 7/31/05 $ 185 1.52% 1.33% 1.69% 146%
Six months ended 1/31/06+ $ 141 1.48%** 1.33%** 1.70%** 109%
- ------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
148-149 Spread
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)
Six months ended 1/31/06+ $11.00 (0.02) 0.79 0.77 -- (3.13)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.78 (0.03) 0.76 0.73 -- (3.13)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.56 (0.06) 0.73 0.67 -- (3.13)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.56 (0.06) 0.73 0.67 -- (3.13)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.71 (0.05) 0.76 0.71 -- (3.13)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $22.82 0.05 1.29 1.34 (0.05) (2.43)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $22.68 0.01 1.29 1.30 -- (2.43)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $22.29 (0.06) 1.25 1.19 -- (2.43)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $22.25 (0.07) 1.26 1.19 -- (2.43)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $22.56 --^ 1.26 1.26 -- (2.43)
- -----------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.64) $ 4.91 (1.21%)
Year ended 12/31/01 --^ $ 6.03 22.90%
1/1/02 to 7/31/02(c) -- $ 5.89 (2.32%)*
Year ended 7/31/03 (0.05) $ 8.20 40.26%
Year ended 7/31/04 (0.52) $ 10.32 32.84%
Year ended 7/31/05 (0.72) $ 11.00 13.86%
Six months ended 1/31/06+ (3.13) $ 8.64 9.28%*
- --------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- $ 5.82 (2.35%)*
Year ended 7/31/03 (0.05) $ 8.08 39.88%
Year ended 7/31/04 (0.52) $ 10.14 32.56%
Year ended 7/31/05 (0.72) $ 10.78 13.60%
Six months ended 1/31/06+ (3.13) $ 8.38 9.20%*
- --------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 -- $ 5.95 0.39%*
1/1/02 to 7/31/02(c) -- $ 5.79 (2.69%)*
Year ended 7/31/03 (0.05) $ 7.97 38.70%
Year ended 7/31/04 (0.52) $ 9.96 32.13%
Year ended 7/31/05 (0.72) $ 10.56 13.54%
Six months ended 1/31/06+ (3.13) $ 8.10 8.64%*
- --------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- $ 5.79 (2.85%)*
Year ended 7/31/03 (0.05) $ 7.97 38.70%
Year ended 7/31/04 (0.52) $ 9.96 32.13%
Year ended 7/31/05 (0.72) $ 10.56 13.54%
Six months ended 1/31/06+ (3.13) $ 8.10 8.64%*
- --------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/00 (0.62) $ 4.88 (1.38%)
Year ended 12/31/01 --^ $ 5.96 22.22%
1/1/02 to 7/31/02(c) -- $ 5.81 (2.52%)*
Year ended 7/31/03 (0.05) $ 8.05 39.60%
Year ended 7/31/04 (0.52) $ 10.09 32.44%
Year ended 7/31/05 (0.72) $ 10.71 13.57%
Six months ended 1/31/06+ (3.13) $ 8.29 8.92%*
- --------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 -- $ 17.54 16.87%*
Year ended 7/31/04 (1.00) $ 20.01 20.11%
Year ended 7/31/05 (1.66) $ 22.82 23.59%
Six months ended 1/31/06+ (2.48) $ 21.68 6.50%*
- --------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 -- $ 17.52 16.73%*
Year ended 7/31/04 (0.98) $ 19.95 19.81%
Year ended 7/31/05 (1.66) $ 22.68 23.24%
Six months ended 1/31/06+ (2.43) $ 21.55 6.36%*
- --------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 -- $ 17.48 16.47%*
Year ended 7/31/04 (0.98) $ 19.76 19.02%
Year ended 7/31/05 (1.66) $ 22.29 22.35%
Six months ended 1/31/06+ (2.43) $ 21.05 5.97%*
- --------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 -- $ 17.48 16.47%*
Year ended 7/31/04 (0.98) $ 19.74 18.85%
Year ended 7/31/05 (1.66) $ 22.25 22.39%
Six months ended 1/31/06+ (2.43) $ 21.01 5.93%*
- --------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 -- $ 17.51 16.67%*
Year ended 7/31/04 (0.98) $ 19.89 19.52%
Year ended 7/31/05 (1.66) $ 22.56 23.00%
Six months ended 1/31/06+ (2.43) $ 21.39 6.22%*
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $ 6,743 1.40% 1.03% 1.40% 116%
Year ended 12/31/01 $ 14,957 1.29% 0.21% 1.35% 47%
1/1/02 to 7/31/02(c) $ 45,538 1.40%** (0.51%)** 1.68%** 16%
Year ended 7/31/03 $100,676 1.40% (0.68%) 1.47% 28%
Year ended 7/31/04 $155,798 1.33% (0.25%) 1.33% 23%
Year ended 7/31/05 $ 98,885 1.35% (0.07%) 1.35% 12%
Six months ended 1/31/06+ $ 88,908 1.38%** (0.47%)** 1.38%** 21%
- ------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 862 1.59%** (0.36%)** 1.78%** 47%
1/1/02 to 7/31/02(c) $ 5,030 1.66%** (0.77%)** 1.95%** 16%
Year ended 7/31/03 $ 18,297 1.65% (0.95%) 1.69% 28%
Year ended 7/31/04 $ 41,402 1.58% (0.49%) 1.58% 23%
Year ended 7/31/05 $ 29,172 1.60% (0.31%) 1.60% 12%
Six months ended 1/31/06+ $ 20,506 1.63%** (0.75%)** 1.63%** 21%
- ------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 352 2.31%** (1.08%)** 2.52%** 47%
1/1/02 to 7/31/02(c) $ 2,709 2.42%** (1.50%)** 2.72%** 16%
Year ended 7/31/03 $ 4,254 2.40% (1.66%) 2.47% 28%
Year ended 7/31/04 $ 6,937 1.89% (0.81%) 2.33% 23%
Year ended 7/31/05 $ 7,348 1.73% (0.40%) 2.36% 12%
Six months ended 1/31/06+ $ 7,486 2.38%** (1.47%)** 2.38%** 21%
- -------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 59 2.32%** (0.97%)** 2.57%** 47%
1/1/02 to 7/31/02(c) $ 712 2.42%** (1.52%)** 2.73%** 16%
Year ended 7/31/03 $ 1,166 2.40% (1.66%) 2.47% 28%
Year ended 7/31/04 $ 5,624 1.81% (0.82%) 2.33% 23%
Year ended 7/31/05 $ 6,143 1.73% (0.39%) 2.36% 12%
Six months ended 1/31/06+ $ 5,910 2.38%** (1.47%)** 2.38%** 21%
- ------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/00 $ 15,424 1.90% 0.53% 1.90% 116%
Year ended 12/31/01 $ 19,196 1.79% (0.29%) 1.85% 47%
1/1/02 to 7/31/02(c) $ 18,905 1.90%** (1.02%)** 2.12%** 16%
Year ended 7/31/03 $ 25,342 1.90% (1.15%) 1.97% 28%
Year ended 7/31/04 $ 41,514 1.68% (0.61%) 1.83% 23%
Year ended 7/31/05 $ 36,031 1.64% (0.34%) 1.85% 12%
Six months ended 1/31/06+ $ 20,454 1.88%** (0.95%)** 1.88%** 21%
- ------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 $ 72,783 1.24%** 0.03%** 1.60%** 39%
Year ended 7/31/04 $107,344 1.25% (0.15%) 1.41% 279%
Year ended 7/31/05 $158,505 1.20% (0.20%) 1.20% 105%
Six months ended 1/31/06+ $133,920 1.21%** 0.43%** 1.22%** 32%
- ------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 $ 216 1.47%** (0.21%)** 1.86%** 39%
Year ended 7/31/04 $ 2,277 1.49% (0.53%) 1.63% 279%
Year ended 7/31/05 $ 2,715 1.45% (0.48%) 1.45% 105%
Six months ended 1/31/06+ $ 2,815 1.46%** 0.13%** 1.47%** 32%
- ------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 $ 103 2.22%** (1.07%)** 2.60%** 39%
Year ended 7/31/04 $ 503 2.24% (1.26%) 2.38% 279%
Year ended 7/31/05 $ 1,142 2.19% (1.18%) 2.20% 105%
Six months ended 1/31/06+ $ 1,308 2.21%** (0.62%)** 2.22%** 32%
- ------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 $ 15 2.23%** (0.97%)** 2.62%** 39%
Year ended 7/31/04 $ 561 2.24% (1.31%) 2.38% 279%
Year ended 7/31/05 $ 927 2.19% (1.21%) 2.20% 105%
Six months ended 1/31/06+ $ 908 2.21%** (0.61%)** 2.22%** 32%
- ------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 $ 216 1.72%** (0.51%)** 2.11%** 39%
Year ended 7/31/04 $ 1,606 1.74% (0.79%) 1.88% 279%
Year ended 7/31/05 $ 1,979 1.70% (0.72%) 1.70% 105%
Six months ended 1/31/06+ $ 1,406 1.71%** (0.04%)** 1.72%** 32%
- ------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
150-151 Spread
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 RETURN
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED OF
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS CAPITAL
- -----------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $17.52 0.28 3.88 4.16 (0.24) (2.72) (0.08)
Year ended 12/31/01 $18.64 0.05 1.43 1.48 (0.07) (0.91) --
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 (0.05) (0.07) --
Year ended 7/31/05 $22.58 0.10 4.85 4.95 (0.11) (1.38) --
Six months ended 1/31/06+ $26.04 0.13 1.51 1.64 (0.06) (2.15) --
- -----------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $19.44 0.01 0.57 0.58 (0.06) (0.91) --
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 (0.01) (0.07) --
Year ended 7/31/05 $22.36 0.04 4.79 4.83 (0.05) (1.38) --
Six months ended 1/31/06+ $25.76 0.09 1.51 1.60 (0.03) (2.15) --
- -----------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $19.44 (0.02) 0.56 0.54 (0.04) (0.91) --
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 -- (0.07) --
Year ended 7/31/05 $21.94 (0.14) 4.69 4.55 -- (1.38) --
Six months ended 1/31/06+ $25.11 --^ 1.45 1.45 -- (2.15) --
- -----------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $19.44 (0.01) 0.55 0.54 (0.04) (0.92) --
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 -- (0.07) --
Year ended 7/31/05 $21.93 (0.15) 4.69 4.54 -- (1.38) --
Six months ended 1/31/06+ $25.09 --^ 1.44 1.44 -- (2.15) --
- -----------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/00 $17.49 0.18 3.89 4.07 (0.17) (2.72) (0.06)
Year ended 12/31/01 $18.61 0.02 1.37 1.39 -- (0.91) --
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 -- (0.07) --
Year ended 7/31/05 $22.29 (0.02) 4.77 4.75 (0.01) (1.38) --
Six months ended 1/31/06+ $25.65 0.06 1.49 1.55 -- (2.15) --
- -----------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -------------------------------------------------------------------------------------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (3.04) $ 18.64 23.78%
Year ended 12/31/01 (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 (0.12) $ 22.58 19.36%
Year ended 7/31/05 (1.49) $ 26.04 22.51%
Six months ended 1/31/06+ (2.21) $ 25.47 6.73%*
- -------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 (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 (0.08) $ 22.36 19.07%
Year ended 7/31/05 (1.43) $ 25.76 22.22%
Six months ended 1/31/06+ (2.18) $ 25.18 6.59%*
- -------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 (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) $ 21.94 18.15%
Year ended 7/31/05 (1.38) $ 25.11 21.33%
Six months ended 1/31/06+ (2.15) $ 24.41 6.17%*
- -------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 (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) $ 21.93 18.22%
Year ended 7/31/05 (1.38) $ 25.09 21.24%
Six months ended 1/31/06+ (2.15) $ 24.38 6.17%*
- -------------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/00 (2.95) $ 18.61 23.29%
Year ended 12/31/01 (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) $ 22.29 18.81%
Year ended 7/31/05 (1.39) $ 25.65 21.90%
Six months ended 1/31/06+ (2.15) $ 25.05 6.43%*
- -------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 241,507 1.29%** 0.98%** 1.29%** 21%
- ------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 40,469 1.54%** 0.73%** 1.54%** 21%
- ------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 22,749 2.29%** (0.02%)** 2.29%** 21%
- ------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 4,581 2.29%** (0.03%)** 2.29%** 21%
- ------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 35,477 1.79%** 0.44%** 1.79%** 21%
- ------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
152-153 Spread
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
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $13.22 0.15 0.17 0.32 (0.14) (0.28)
Year ended 7/31/02 $13.12 0.09 (1.73) (1.64) (0.10) (0.53)
Year ended 7/31/03 $10.85 0.18@ 1.14 1.32 (0.16) (0.16)
Year ended 7/31/04 $11.85 0.15 2.08 2.23 (0.16) (0.40)
Year ended 7/31/05 $13.52 0.18 1.95 2.13 (0.18) (0.39)
Six months ended 1/31/06+ $15.08 0.10 0.43 0.53 (0.10) (1.44)
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/01 $13.22 0.11 0.16 0.27 (0.10) (0.28)
Year ended 7/31/02 $13.11 0.07 (1.74) (1.67) (0.08) (0.53)
Year ended 7/31/03 $10.83 0.16@ 1.14 1.30 (0.14) (0.16)
Year ended 7/31/04 $11.83 0.12 2.08 2.20 (0.13) (0.40)
Year ended 7/31/05 $13.50 0.14 1.94 2.08 (0.14) (0.39)
Six months ended 1/31/06+ $15.05 0.08 0.43 0.51 (0.08) (1.44)
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $13.40 0.03 0.12 0.15 (0.03) (0.28)
Year ended 7/31/02 $13.24 (0.02) (1.74) (1.76) (0.02) (0.53)
Year ended 7/31/03 $10.93 0.08@ 1.15 1.23 (0.07) (0.16)
Year ended 7/31/04 $11.93 0.03 2.09 2.12 (0.04) (0.40)
Year ended 7/31/05 $13.61 0.04 1.95 1.99 (0.04) (0.39)
Six months ended 1/31/06+ $15.17 0.02 0.44 0.46 (0.03) (1.44)
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/01 $13.23 0.05 0.14 0.19 (0.04) (0.28)
Year ended 7/31/02 $13.10 (0.03) (1.73) (1.76) (0.01) (0.53)
Year ended 7/31/03 $10.80 0.08@ 1.11 1.19 (0.07) (0.16)
Year ended 7/31/04 $11.76 0.02 2.07 2.09 (0.05) (0.40)
Year ended 7/31/05 $13.40 0.03 1.94 1.97 (0.04) (0.39)
Six months ended 1/31/06+ $14.94 0.03 0.42 0.45 (0.03) (1.44)
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $15.05 0.04 0.45 0.49 (0.08) (1.44)
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (0.42) $13.12 2.18%
Year ended 7/31/02 (0.63) $10.85 (12.96%)
Year ended 7/31/03 (0.32) $11.85 12.53%
Year ended 7/31/04 (0.56) $13.52 19.22%
Year ended 7/31/05 (0.57) $15.08 16.07%
Six months ended 1/31/06+ (1.54) $14.07 3.74%*
- ------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/01 (0.38) $13.11 1.85%
Year ended 7/31/02 (0.61) $10.83 (13.24%)
Year ended 7/31/03 (0.30) $11.83 12.30%
Year ended 7/31/04 (0.53) $13.50 18.96%
Year ended 7/31/05 (0.53) $15.05 15.74%
Six months ended 1/31/06+ (1.52) $14.04 3.64%*
- ------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (0.31) $13.24 0.97%*
Year ended 7/31/02 (0.55) $10.93 (13.84%)
Year ended 7/31/03 (0.23) $11.93 11.50%
Year ended 7/31/04 (0.44) $13.61 18.07%
Year ended 7/31/05 (0.43) $15.17 14.85%
Six months ended 1/31/06+ (1.47) $14.16 3.28%*
- ------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/01 (0.32) $13.10 1.20%
Year ended 7/31/02 (0.54) $10.80 (13.85%)
Year ended 7/31/03 (0.23) $11.76 11.28%
Year ended 7/31/04 (0.45) $13.40 18.07%
Year ended 7/31/05 (0.43) $14.94 14.96%
Six months ended 1/31/06+ (1.47) $13.92 3.26%*
- ------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (1.52) $14.02 3.50%*
- ------------------------------------------------------------------------------------------------
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)
- ---------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $568,709 1.07%** 1.35%** 1.07%** 20%
- ---------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 23,796 1.32%** 1.11%** 1.32%** 20%
- ---------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 5,682 2.07%** 0.35%** 2.07%** 20%
- ---------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 2,337 2.07%** 0.36%** 2.07%** 20%
- ---------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 167 1.56%** 0.63%** 1.56%** 20%
- ---------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
154-155 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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)
Six months ended 1/31/06+ $14.36 0.15# 0.82# 0.97 (0.15) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $14.32 0.13# 0.81# 0.94 (0.13) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $14.08 0.08# 0.80# 0.88 (0.10) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $14.08 0.08# 0.80# 0.88 (0.10) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $14.36 0.12# 0.80# 0.92 (0.13) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $13.91 0.17# 0.59# 0.76 (0.17) (0.27)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $13.89 0.15# 0.58# 0.73 (0.15) (0.27)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $13.83 0.11# 0.58# 0.69 (0.11) (0.27)
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $13.83 0.10# 0.57# 0.67 (0.10) (0.27)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $13.91 0.15# 0.58# 0.73 (0.16) (0.27)
- -----------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.04) $11.35 13.92%*
Year ended 7/31/04 (0.31) $12.49 12.83%
Year ended 7/31/05 (0.23) $14.36 16.91%
Six months ended 1/31/06+ (0.46) $14.87 6.86%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.02) $11.33 13.57%*
Year ended 7/31/04 (0.29) $12.45 12.49%
Year ended 7/31/05 (0.20) $14.32 16.59%
Six months ended 1/31/06+ (0.44) $14.82 6.75%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 -- $11.26 12.65%*
Year ended 7/31/04 (0.28) $12.30 11.70%
Year ended 7/31/05 (0.15) $14.08 15.73%
Six months ended 1/31/06+ (0.41) $14.55 6.36%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.01) $11.26 12.74%*
Year ended 7/31/04 (0.27) $12.30 11.67%
Year ended 7/31/05 (0.15) $14.08 15.80%
Six months ended 1/31/06+ (0.41) $14.55 6.30%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.44) $14.84 6.56%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.08) $11.59 16.78%*
Year ended 7/31/04 (0.33) $12.48 10.54%
Year ended 7/31/05 (0.29) $13.91 13.87%
Six months ended 1/31/06+ (0.44) $14.23 5.61%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.07) $11.58 16.51%*
Year ended 7/31/04 (0.31) $12.47 10.32%
Year ended 7/31/05 (0.26) $13.89 13.53%
Six months ended 1/31/06+ (0.42) $14.20 5.42%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.02) $11.55 15.70%*
Year ended 7/31/04 (0.23) $12.42 9.47%
Year ended 7/31/05 (0.16) $13.83 12.68%
Six months ended 1/31/06+ (0.38) $14.14 5.08%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.02) $11.55 15.71%*
Year ended 7/31/04 (0.23) $12.41 9.45%
Year ended 7/31/05 (0.16) $13.83 12.75%
Six months ended 1/31/06+ (0.37) $14.13 4.99%*
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.43) $14.21 5.37%*
- ----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 32,421 0.08%** 0.45%** 0.78%** 79%
Year ended 7/31/04 $ 52,085 0.08% 1.09% 0.51% 22%
Year ended 7/31/05 $ 70,072 0.08% 1.15% 0.47% 35%
Six months ended 1/31/06+ $ 86,662 0.08%** 2.16%** 0.47%** 8%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10,090 0.33%** 0.16%** 1.24%** 79%
Year ended 7/31/04 $ 38,249 0.33% 0.80% 0.76% 22%
Year ended 7/31/05 $ 47,172 0.33% 0.91% 0.72% 35%
Six months ended 1/31/06+ $ 49,821 0.33%** 1.84%** 0.72%** 8%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 3,587 1.08%** (0.54%)** 2.06%** 79%
Year ended 7/31/04 $ 12,106 1.08% 0.03% 1.51% 22%
Year ended 7/31/05 $ 16,203 1.08% 0.15% 1.47% 35%
Six months ended 1/31/06+ $ 16,897 1.08%** 1.07%** 1.47%** 8%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 532 1.08%** (0.62%)** 2.20%** 79%
Year ended 7/31/04 $ 1,916 1.08% 0.06% 1.51% 22%
Year ended 7/31/05 $ 2,164 1.08% 0.14% 1.47% 35%
Six months ended 1/31/06+ $ 2,432 1.08%** 1.09%** 1.47%** 8%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 105 0.58%** 2.88%** 0.95%** 8%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 62,677 0.08%** 1.15%** 0.54%** 55%
Year ended 7/31/04 $ 82,264 0.08% 1.56% 0.45% 16%
Year ended 7/31/05 $110,379 0.08% 1.62% 0.44% 35%
Six months ended 1/31/06+ $128,437 0.08%** 2.54%** 0.45%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 33,806 0.33%** 0.86%** 0.90%** 55%
Year ended 7/31/04 $ 94,739 0.33% 1.32% 0.70% 16%
Year ended 7/31/05 $125,130 0.33% 1.38% 0.69% 35%
Six months ended 1/31/06+ $129,671 0.33%** 2.29%** 0.70%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 12,606 1.08%** 0.10%** 1.60%** 55%
Year ended 7/31/04 $ 39,636 1.08% 0.53% 1.45% 16%
Year ended 7/31/05 $ 50,000 1.08% 0.62% 1.44% 35%
Six months ended 1/31/06+ $ 52,798 1.08%** 1.52%** 1.45%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,386 1.08%** 0.06%** 1.61%** 55%
Year ended 7/31/04 $ 8,046 1.08% 0.48% 1.45% 16%
Year ended 7/31/05 $ 9,034 1.08% 0.62% 1.44% 35%
Six months ended 1/31/06+ $ 9,274 1.08%** 1.50%** 1.45%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 445 0.58%** 3.47%** 0.93%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
156-157 Spread
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 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)
Six months ended 1/31/06+ $12.52 0.18# 0.36# 0.54 (0.18) (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $12.50 0.17# 0.36# 0.53 (0.17) (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $12.45 0.12# 0.35# 0.47 (0.12) (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $12.45 0.12# 0.36# 0.48 (0.12) (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $12.52 0.17# 0.33# 0.50 (0.17) (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $11.59 0.18# 0.22# 0.40 (0.18) (0.27)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $11.58 0.17# 0.21# 0.38 (0.17) (0.27)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $11.54 0.13# 0.21# 0.34 (0.13) (0.27)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $11.54 0.12# 0.22# 0.34 (0.12) (0.27)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $11.59 0.12# 0.26# 0.38 (0.18) (0.27)
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.13) $10.93 10.66%*
Year ended 7/31/04 (0.33) $11.57 8.84%
Year ended 7/31/05 (0.29) $12.52 10.79%
Six months ended 1/31/06+ (0.42) $12.64 4.41%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.11) $10.93 10.48%*
Year ended 7/31/04 (0.30) $11.56 8.53%
Year ended 7/31/05 (0.26) $12.50 10.43%
Six months ended 1/31/06+ (0.41) $12.62 4.29%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.06) $10.89 9.58%*
Year ended 7/31/04 (0.23) $11.51 7.80%
Year ended 7/31/05 (0.17) $12.45 9.58%
Six months ended 1/31/06+ (0.36) $12.56 3.93%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.06) $10.90 9.67%*
Year ended 7/31/04 (0.24) $11.51 7.76%
Year ended 7/31/05 (0.17) $12.45 9.64%
Six months ended 1/31/06+ (0.36) $12.57 3.92%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.41) $12.61 4.07%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.16) $10.62 7.87%*
Year ended 7/31/04 (0.45) $10.95 7.39%
Year ended 7/31/05 (0.36) $11.59 9.24%
Six months ended 1/31/06+ (0.45) $11.54 3.57%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.14) $10.60 7.51%*
Year ended 7/31/04 (0.42) $10.93 7.15%
Year ended 7/31/05 (0.33) $11.58 8.97%
Six months ended 1/31/06+ (0.44) $11.52 3.45%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.10) $10.58 6.81%*
Year ended 7/31/04 (0.35) $10.90 6.35%
Year ended 7/31/05 (0.25) $11.54 8.10%
Six months ended 1/31/06+ (0.40) $11.48 3.07%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.09) $10.59 6.81%*
Year ended 7/31/04 (0.35) $10.90 6.29%
Year ended 7/31/05 (0.25) $11.54 8.18%
Six months ended 1/31/06+ (0.39) $11.49 3.06%*
- --------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.45) $11.52 3.33%*
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 71,538 0.08%** 1.82%** 0.52%** 55%
Year ended 7/31/04 $315,055 0.08% 1.76% 0.43% 14%
Year ended 7/31/05 $340,163 0.08% 2.17% 0.42% 41%
Six months ended 1/31/06+ $322,826 0.08%** 3.00%** 0.43%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 28,991 0.33%** 1.52%** 0.84%** 55%
Year ended 7/31/04 $ 98,293 0.33% 1.79% 0.68% 14%
Year ended 7/31/05 $106,044 0.33% 1.92% 0.67% 41%
Six months ended 1/31/06+ $106,167 0.33%** 2.77%** 0.68%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 14,631 1.08%** 0.74%** 1.63%** 55%
Year ended 7/31/04 $ 36,778 1.08% 1.05% 1.43% 14%
Year ended 7/31/05 $ 44,111 1.08% 1.17% 1.42% 41%
Six months ended 1/31/06+ $ 44,747 1.08%** 2.01%** 1.43%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,335 1.08%** 0.70%** 1.66%** 55%
Year ended 7/31/04 $ 7,442 1.08% 1.04% 1.43% 14%
Year ended 7/31/05 $ 7,912 1.08% 1.16% 1.42% 41%
Six months ended 1/31/06+ $ 7,614 1.08%** 1.98%** 1.43%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 259 0.58%** 3.54%** 0.91%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 40,412 0.08%** 2.23%** 0.60%** 72%
Year ended 7/31/04 $ 38,097 0.08% 2.33% 0.49% 19%
Year ended 7/31/05 $ 38,606 0.08% 2.44% 0.47% 38%
Six months ended 1/31/06+ $ 40,077 0.08%** 3.26%** 0.50%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 19,449 0.33%** 1.82%** 1.04%** 72%
Year ended 7/31/04 $ 40,851 0.33% 2.09% 0.74% 19%
Year ended 7/31/05 $ 41,446 0.33% 2.18% 0.72% 38%
Six months ended 1/31/06+ $ 39,669 0.33%** 3.00%** 0.75%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 9,083 1.08%** 1.09%** 1.80%** 72%
Year ended 7/31/04 $ 21,122 1.08% 1.31% 1.49% 19%
Year ended 7/31/05 $ 22,752 1.08% 1.44% 1.47% 38%
Six months ended 1/31/06+ $ 22,208 1.08%** 2.24%** 1.50%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 1,017 1.08%** 1.07%** 1.73%** 72%
Year ended 7/31/04 $ 3,576 1.08% 1.26% 1.49% 19%
Year ended 7/31/05 $ 4,029 1.08% 1.42% 1.47% 38%
Six months ended 1/31/06+ $ 3,638 1.08%** 2.22%** 1.50%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 66 0.58%** 3.95%** 0.99%** 18%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
158-159 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-----------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.23# 0.52# 0.75
Year ended 7/31/04 $ 10.54 0.31# 0.26# 0.57
Year ended 7/31/05 $ 10.66 0.31# 0.36# 0.67
Six months ended 1/31/06+ $ 10.92 0.20# 0.06# 0.26
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.21# 0.51# 0.72
Year ended 7/31/04 $ 10.53 0.26# 0.28# 0.54
Year ended 7/31/05 $ 10.64 0.30# 0.34# 0.64
Six months ended 1/31/06+ $ 10.90 0.20# 0.05# 0.25
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.16# 0.49# 0.65
Year ended 7/31/04 $ 10.50 0.19# 0.27# 0.46
Year ended 7/31/05 $ 10.61 0.22# 0.34# 0.56
Six months ended 1/31/06+ $ 10.87 0.16# 0.05# 0.21
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.50# 0.65
Year ended 7/31/04 $ 10.51 0.18# 0.28# 0.46
Year ended 7/31/05 $ 10.61 0.23# 0.34# 0.57
Six months ended 1/31/06+ $ 10.88 0.17# 0.04# 0.21
- ----------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 10.92 0.16# 0.07# 0.23
- ----------------------------------------------------------------------------------------------------------
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
Six months ended 1/31/06+ $ 11.54 0.26 (0.15) 0.11
- ----------------------------------------------------------------------------------------------------------
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
Six months ended 1/31/06+ $ 11.51 0.25 (0.15) 0.10
- ----------------------------------------------------------------------------------------------------------
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
Six months ended 1/31/06+ $ 11.51 0.21 (0.15) 0.06
- ----------------------------------------------------------------------------------------------------------
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
Six months ended 1/31/06+ $ 11.43 0.20 (0.14) 0.06
- ----------------------------------------------------------------------------------------------------------
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
Six months ended 1/31/06+ $ 11.50 0.23 (0.14) 0.09
- ----------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
---------------------------------
NET NET RETURN
INVESTMENT REALIZED OF
INCOME GAINS CAPITAL
- --------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.21) -- --
Year ended 7/31/04 (0.29) (0.16) --
Year ended 7/31/05 (0.32) (0.09) --
Six months ended 1/31/06+ (0.20) (0.11) --
- --------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.19) -- --
Year ended 7/31/04 (0.27) (0.16) --
Year ended 7/31/05 (0.29) (0.09) --
Six months ended 1/31/06+ (0.19) (0.11) --
- --------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.15) -- --
Year ended 7/31/04 (0.19) (0.16) --
Year ended 7/31/05 (0.21) (0.09) --
Six months ended 1/31/06+ (0.15) (0.11) --
- --------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.14) -- --
Year ended 7/31/04 (0.20) (0.16) --
Year ended 7/31/05 (0.21) (0.09) --
Six months ended 1/31/06+ (0.15) (0.11) --
- --------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.19) (0.11) --
- --------------------------------------------------------------------------------------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.75) -- --
Year ended 12/31/01 (0.67) -- --^
1/1/02 to 7/31/02(c) (0.34) -- --
Year ended 7/31/03 (0.55) -- --
Year ended 7/31/04 (0.52) -- --
Year ended 7/31/05 (0.50) (0.01) --
Six months ended 1/31/06+ (0.25) (0.03) --
- --------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 (0.16) -- --
Year ended 7/31/05 (0.47) (0.01) --
Six months ended 1/31/06+ (0.24) (0.03) --
- --------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 (0.14) -- --
Year ended 7/31/05 (0.39) (0.01) --
Six months ended 1/31/06+ (0.20) (0.03) --
- --------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 (0.09) -- --
1/1/02 to 7/31/02(c) (0.29) -- --
Year ended 7/31/03 (0.44) -- --
Year ended 7/31/04 (0.41) -- --
Year ended 7/31/05 (0.39) (0.01) --
Six months ended 1/31/06+ (0.20) (0.03) --
- --------------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/00 (0.70) -- --
Year ended 12/31/01 (0.65) -- --^
1/1/02 to 7/31/02(c) (0.31) -- --
Year ended 7/31/03 (0.49) -- --
Year ended 7/31/04 (0.47) -- --
Year ended 7/31/05 (0.45) (0.01) --
Six months ended 1/31/06+ (0.23) (0.03) --
- --------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.21) $ 10.54 7.58%*
Year ended 7/31/04 (0.45) $ 10.66 5.44%
Year ended 7/31/05 (0.41) $ 10.92 6.38%
Six months ended 1/31/06+ (0.31) $ 10.87 2.46%*
- -------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.19) $ 10.53 7.31%*
Year ended 7/31/04 (0.43) $ 10.64 5.11%
Year ended 7/31/05 (0.38) $ 10.90 6.13%
Six months ended 1/31/06+ (0.30) $ 10.85 2.33%*
- -------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.15) $ 10.50 6.54%*
Year ended 7/31/04 (0.35) $ 10.61 4.37%
Year ended 7/31/05 (0.30) $ 10.87 5.34%
Six months ended 1/31/06+ (0.26) $ 10.82 1.94%*
- -------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.14) $ 10.51 6.58%*
Year ended 7/31/04 (0.36) $ 10.61 4.34%
Year ended 7/31/05 (0.30) $ 10.88 5.30%
Six months ended 1/31/06+ (0.26) $ 10.83 2.02%*
- -------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.30) $ 10.85 2.16%*
- -------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.75) $ 9.96 16.52%
Year ended 12/31/01 (0.67) $ 10.57 13.12%
1/1/02 to 7/31/02(c) (0.34) $ 10.63 3.82%*
Year ended 7/31/03 (0.55) $ 10.91 7.89%
Year ended 7/31/04 (0.52) $ 11.15 7.04%
Year ended 7/31/05 (0.51) $ 11.54 8.21%
Six months ended 1/31/06+ (0.28) $ 11.37 1.05%*
- -------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 (0.16) $ 11.12 (3.15%)*
Year ended 7/31/05 (0.48) $ 11.51 7.96%
Six months ended 1/31/06+ (0.27) $ 11.34 0.93%*
- -------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 (0.14) $ 11.12 (3.36%)*
Year ended 7/31/05 (0.40) $ 11.51 7.16%
Six months ended 1/31/06+ (0.23) $ 11.34 0.55%*
- -------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 (0.09) $ 10.50 0.62%*
1/1/02 to 7/31/02(c) (0.29) $ 10.55 3.22%*
Year ended 7/31/03 (0.44) $ 10.82 6.82%
Year ended 7/31/04 (0.41) $ 11.05 6.07%
Year ended 7/31/05 (0.40) $ 11.43 7.12%
Six months ended 1/31/06+ (0.23) $ 11.26 0.47%*
- -------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/00 (0.70) $ 9.95 16.01%
Year ended 12/31/01 (0.65) $ 10.53 12.64%
1/1/02 to 7/31/02(c) (0.31) $ 10.60 3.64%*
Year ended 7/31/03 (0.49) $ 10.88 7.36%
Year ended 7/31/04 (0.47) $ 11.12 6.55%
Year ended 7/31/05 (0.46) $ 11.50 7.70%
Six months ended 1/31/06+ (0.26) $ 11.33 0.71%*
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 16,014 0.08%** 2.90%** 0.75%** 63%
Year ended 7/31/04 $ 14,201 0.08% 2.79% 0.58% 27%
Year ended 7/31/05 $ 22,236 0.08% 3.00% 0.54% 46%
Six months ended 1/31/06+ $ 23,889 0.08%** 3.80%** 0.57%** 13%
- ------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 9,387 0.33%** 2.52%** 1.17%** 63%
Year ended 7/31/04 $ 20,461 0.33% 2.59% 0.84% 27%
Year ended 7/31/05 $ 20,014 0.33% 2.76% 0.79% 46%
Six months ended 1/31/06+ $ 18,130 0.33%** 3.51%** 0.82%** 13%
- ------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 8,795 1.08%** 1.75%** 1.86%** 63%
Year ended 7/31/04 $ 13,524 1.08% 1.80% 1.58% 27%
Year ended 7/31/05 $ 12,688 1.08% 2.01% 1.54% 46%
Six months ended 1/31/06+ $ 11,373 1.08%** 2.75%** 1.57%** 13%
- ------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 2,203 1.08%** 1.63%** 1.86%** 63%
Year ended 7/31/04 $ 6,563 1.08% 1.81% 1.58% 27%
Year ended 7/31/05 $ 5,304 1.08% 2.01% 1.54% 46%
Six months ended 1/31/06+ $ 4,105 1.08%** 2.73%** 1.57%** 13%
- ------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 49 0.58%** 3.83%** 1.06%** 13%
- ------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $100,226 1.32%** 4.62%** 1.32%** 5%
- ------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 5,299 1.57%** 4.39%** 1.57%** 5%
- ------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 2,142 2.32%** 3.65%** 2.32%** 5%
- ------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 23,836 2.32%** 3.58%** 2.32%** 5%
- ------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/06+ $ 25,255 1.82%** 4.07%** 1.82%** 5%
- ------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
160-161 Spread
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
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++
Year ended 7/31/01 $ 38.23 -- (11.73) (11.73) -- (1.03)
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 -- --
Six months ended 1/31/06+ $ 21.71 0.11@ 0.43 0.54 -- --
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS A SHARES ++
Year ended 7/31/01 $ 38.05 -- (11.74) (11.74) -- (1.03)
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 -- --
Six months ended 1/31/06+ $ 21.34 0.08@ 0.43 0.51 -- --
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS B SHARES ++
10/11/00(d) to 7/31/01 $ 34.43 -- (7.81) (7.81) -- (1.03)
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 -- --
Six months ended 1/31/06+ $ 20.83 --@ 0.41 0.41 -- --
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS C SHARES ++
Year ended 7/31/01 $ 37.56 -- (11.78) (11.78) -- (1.03)
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 -- --
Six months ended 1/31/06+ $ 20.27 --@ 0.40 0.40 -- --
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
8/1/06 to 1/31/06(d) $ 21.34 0.03@ 0.45 0.48 -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++
Year ended 7/31/01 (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%
Six months ended 1/31/06+ -- $ 22.25 2.49%*
- -------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS A SHARES++
Year ended 7/31/01 (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%
Six months ended 1/31/06+ -- $ 21.85 2.39%*
- -------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS B SHARES++
10/11/00(d) to 7/31/01 (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%
Six months ended 1/31/06+ -- $ 21.24 1.97%*
- -------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS C SHARES++
Year ended 7/31/01 (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%
Six months ended 1/31/06+ -- $ 20.67 1.97%*
- -------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES++
8/1/06 to 1/31/06(d) -- $ 21.82 2.25%*
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH 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%
Six months ended 1/31/06+ $16,194 0.97%** 0.96%** 2.04%** 13%
- ------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH 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%
Six months ended 1/31/06+ $ 5,321 1.37%** 0.72%** 2.38%** 13%
- ------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH 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%
Six months ended 1/31/06+ $ 331 2.07%** (0.02%)** 3.11%** 13%
- ------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH 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%
Six months ended 1/31/06+ $ 458 2.11%** 0.02%** 3.12%** 13%
- ------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
8/1/06 to 1/31/06(d) $ 13 1.43%** 0.29%** 2.51%** 13%
- ------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
162-163 Spread
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 -- --
Six months ended 1/31/06+ $ 9.96 (0.06)@ 1.74 1.68 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $ 9.83 (0.07)@ 1.72 1.65 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $ 9.48 (0.11)@ 1.65 1.54 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $ 9.45 (0.11)@ 1.65 1.54 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
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 -- --
Six months ended 1/31/06+ $ 9.73 (0.09)@ 1.71 1.62 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (0.16) $10.37 (46.65%)
Year ended 7/31/02 -- $ 5.55 (46.48%)
Year ended 7/31/03 -- $ 8.72 57.12%
Year ended 7/31/04 -- $ 8.46 (2.98%)
Year ended 7/31/05 -- $ 9.96 17.73%
Six months ended 1/31/06+ -- $11.64 16.87%*
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS A SHARES
Year ended 7/31/01 (0.16) $10.35 (45.62%)
Year ended 7/31/02 -- $ 5.52 (46.67%)
Year ended 7/31/03 -- $ 8.66 56.88%
Year ended 7/31/04 -- $ 8.38 (3.23%)
Year ended 7/31/05 -- $ 9.83 17.30%
Six months ended 1/31/06+ -- $11.48 16.79%*
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (0.16) $10.28 (39.95%)*
Year ended 7/31/02 -- $ 5.44 (47.08%)
Year ended 7/31/03 -- $ 8.47 55.70%
Year ended 7/31/04 -- $ 8.14 (3.90%)
Year ended 7/31/05 -- $ 9.48 16.46%
Six months ended 1/31/06+ -- $11.02 16.24%*
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS C SHARES
Year ended 7/31/01 (0.16) $10.24 (46.12%)
Year ended 7/31/02 -- $ 5.43 (46.97%)
Year ended 7/31/03 -- $ 8.44 55.43%
Year ended 7/31/04 -- $ 8.11 (3.79%)
Year ended 7/31/05 -- $ 9.45 16.50%
Six months ended 1/31/06+ -- $10.99 16.17%*
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 -- $ 5.51 (34.48%)*
Year ended 7/31/03 -- $ 8.61 56.26%
Year ended 7/31/04 -- $ 8.31 (3.37%)
Year ended 7/31/05 -- $ 9.73 16.95%
Six months ended 1/31/06+ -- $11.35 16.65%*
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $ 45,842 1.50% (1.24%) 1.50% 50%
Year ended 7/31/02 $ 21,183 1.51% (1.35%) 1.51% 97%
Year ended 7/31/03 $ 29,573 1.55% (1.46%) 1.87% 258%
Year ended 7/31/04 $ 37,573 1.20% (1.07%) 1.55% 191%
Year ended 7/31/05 $ 38,941 1.63% (1.40%) 1.63% 367%
Six months ended 1/31/06+ $ 47,395 1.52%** (1.20%)** 1.52%** 294%
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS A SHARES
Year ended 7/31/01 $ 5,615 1.76% (1.49%) 1.76% 50%
Year ended 7/31/02 $ 3,256 1.75% (1.59%) 1.75% 97%
Year ended 7/31/03 $ 5,218 1.81% (1.71%) 2.13% 258%
Year ended 7/31/04 $ 7,105 1.45% (1.31%) 1.80% 191%
Year ended 7/31/05 $ 5,699 1.87% (1.64%) 1.87% 367%
Six months ended 1/31/06+ $ 5,145 1.78%** (1.45%)** 1.78%** 294%
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 900 2.54%** (2.28%)** 2.54%** 50%
Year ended 7/31/02 $ 679 2.51% (2.35%) 2.51% 97%
Year ended 7/31/03 $ 1,164 2.55% (2.45%) 2.87% 258%
Year ended 7/31/04 $ 1,436 2.20% (2.06%) 2.56% 191%
Year ended 7/31/05 $ 1,160 2.62% (2.39%) 2.62% 367%
Six months ended 1/31/06+ $ 1,132 2.53%** (2.20%)** 2.53%** 294%
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS C SHARES
Year ended 7/31/01 $ 150 2.60% (2.33%) 2.60% 50%
Year ended 7/31/02 $ 96 2.45% (2.29%) 2.45% 97%
Year ended 7/31/03 $ 1,081 2.47% (2.37%) 2.82% 258%
Year ended 7/31/04 $ 1,757 2.20% (2.07%) 2.55% 191%
Year ended 7/31/05 $ 590 2.60% (2.37%) 2.60% 367%
Six months ended 1/31/06+ $ 475 2.53%** (2.21%)** 2.53%** 294%
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 6 1.95%** (1.82%)** 1.95%** 97%
Year ended 7/31/03 $ 55 1.90% (1.83%) 2.30% 258%
Year ended 7/31/04 $ 247 1.71% (1.58%) 2.04% 191%
Year ended 7/31/05 $ 239 2.12% (1.89%) 2.12% 367%
Six months ended 1/31/06+ $ 599 2.01%** (1.71%)** 2.01%** 294%
- ------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
164-165 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.79 0.02@ 2.16 2.18 (0.20) (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.80 0.01@ 2.16 2.17 (0.17) (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.66 (0.03)@ 2.12 2.09 (0.10) (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.39 (0.03)@ 2.08 2.05 (0.11) (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.78 --@ 2.15 2.15 (0.12) (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
Year ended 7/31/01 (1.62) $ 9.04 (17.61%)
Year ended 7/31/02 (0.11) $ 7.65 (14.30%)
Year ended 7/31/03 (0.04) $ 7.79 2.47%
Year ended 7/31/04 (0.14) $ 9.32 21.56%
Year ended 7/31/05 (0.20) $10.79 17.99%
Six months ended 1/31/06+ (0.48) $12.49 20.58%*
- ---------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/01 (1.62) $ 9.02 (17.85%)
Year ended 7/31/02 (0.10) $ 7.64 (14.23%)
Year ended 7/31/03 (0.02) $ 7.81 2.52%
Year ended 7/31/04 (0.12) $ 9.33 21.11%
Year ended 7/31/05 (0.17) $10.80 17.79%
Six months ended 1/31/06+ (0.45) $12.52 20.34%*
- ---------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
10/11/00(d) to 7/31/01 (1.62) $ 9.06 (13.36%)*
Year ended 7/31/02 (0.10) $ 7.60 (15.11%)
Year ended 7/31/03 -- $ 7.71 1.45%
Year ended 7/31/04 (0.05) $ 9.23 20.43%
Year ended 7/31/05 (0.11) $10.66 16.76%
Six months ended 1/31/06+ (0.38) $12.37 19.97%*
- ---------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/01 (1.62) $ 8.82 (18.39%)
Year ended 7/31/02 (0.10) $ 7.40 (15.07%)
Year ended 7/31/03 -- $ 7.50 1.35%
Year ended 7/31/04 (0.03) $ 8.99 20.32%
Year ended 7/31/05 (0.11) $10.39 16.83%
Six months ended 1/31/06+ (0.39) $12.05 20.02%*
- ---------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 (0.03) $ 9.31 7.70%*
Year ended 7/31/05 (0.15) $10.78 17.43%
Six months ended 1/31/06+ (0.40) $12.53 20.30%*
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
Year ended 7/31/01 $ 154,950 1.48% 0.98% 1.48% 42%
Year ended 7/31/02 $ 148,593 1.38% 0.17% 1.38% 23%
Year ended 7/31/03 $ 159,160 1.42% 0.96% 1.45% 44%
Year ended 7/31/04 $ 324,852 1.36% 0.61% 1.42% 50%
Year ended 7/31/05 $ 282,476 1.35% 1.15% 1.39% 21%
Six months ended 1/31/06+ $ 422,647 1.35%** 0.37%** 1.36%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/01 $ 5,933 1.73% 0.07% 1.73% 42%
Year ended 7/31/02 $ 4,105 1.62% 0.17% 1.62% 23%
Year ended 7/31/03 $ 5,489 1.67% 0.88% 1.69% 44%
Year ended 7/31/04 $ 22,999 1.61% 0.51% 1.67% 50%
Year ended 7/31/05 $ 20,509 1.60% 0.88% 1.64% 21%
Six months ended 1/31/06+ $ 29,166 1.60%** 0.14%** 1.62%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
10/11/00(d) to 7/31/01 $ 176 2.43%** 2.08%** 2.43%** 42%
Year ended 7/31/02 $ 246 2.38% (0.79%) 2.38% 23%
Year ended 7/31/03 $ 340 2.42% 0.01% 2.45% 44%
Year ended 7/31/04 $ 793 2.36% (0.21%) 2.42% 50%
Year ended 7/31/05 $ 1,280 2.35% 0.23% 2.39% 21%
Six months ended 1/31/06+ $ 1,730 2.35%** (0.60%)** 2.36%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/01 $ 163 2.43% (0.01%) 2.57% 42%
Year ended 7/31/02 $ 127 2.38% (0.94%) 2.38% 23%
Year ended 7/31/03 $ 304 2.39% 0.64% 2.44% 44%
Year ended 7/31/04 $ 555 2.36% (0.22%) 2.42% 50%
Year ended 7/31/05 $ 962 2.35% 0.26% 2.39% 21%
Six months ended 1/31/06+ $ 1,181 2.35%** (0.58%)** 2.37%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 12,360 1.85%** 0.31%** 1.92%** 50%
Year ended 7/31/05 $ 12,315 1.85% 0.64% 1.89% 21%
Six months ended 1/31/06+ $ 10,403 1.85%** (0.01%)** 1.87%** 14%
- ---------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
166-167 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND INSTITUTIONAL SHARES
11/29/05(d) to 1/31/06+ $10.00 0.09@ 0.06 0.15 (0.07) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05(d) to 1/31/06+ $10.00 0.09@ 0.05 0.14 (0.06) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05(d) to 1/31/06+ $10.00 0.06@ 0.07 0.13 (0.05) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05(d) to 1/31/06+ $10.00 0.06@ 0.07 0.13 (0.05) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05(d) to 1/31/06+ $10.00 0.07@ 0.07 0.14 (0.06) --
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.07 0.21 (0.13) 0.08 (0.22) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.07 0.18 (0.13) 0.05 (0.20) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.07 0.16 (0.13) 0.03 (0.17) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.07 0.15 (0.12) 0.03 (0.17) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.07 0.18 (0.14) 0.04 (0.19) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND INSTITUTIONAL SHARES
11/29/05(d) to 1/31/06+ (0.07) $10.08 1.47%*
- ---------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05(d) to 1/31/06+ (0.06) $10.08 1.42%*
- ---------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05(d) to 1/31/06+ (0.05) $10.08 1.30%*
- ---------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05(d) to 1/31/06+ (0.05) $10.08 1.28%*
- ---------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05(d) to 1/31/06+ (0.06) $10.08 1.38%*
- ---------------------------------------------------------------------------------------------
BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.61) $ 9.72 11.91%
1/1/01 to 7/31/01(f) (0.34) $ 9.97 6.19%*
Year ended 7/31/02 (0.53) $ 9.93 5.06%
Year ended 7/31/03 (0.45) $ 9.96 4.79%
Year ended 7/31/04 (0.36) $10.02 4.26%
Year ended 7/31/05 (0.39) $10.07 4.43%
Six months ended 1/31/06+ (0.28) $ 9.87 0.78%*
- ---------------------------------------------------------------------------------------------
BOND FUND CLASS A SHARES
Year ended 12/31/00 (0.59) $ 9.71 11.65%
1/1/01 to 7/31/01(f) (0.33) $ 9.95 6.05%*
Year ended 7/31/02 (0.51) $ 9.92 4.91%
Year ended 7/31/03 (0.42) $ 9.95 4.62%
Year ended 7/31/04 (0.34) $10.02 4.00%
Year ended 7/31/05 (0.36) $10.07 4.17%
Six months ended 1/31/06+ (0.26) $ 9.86 0.56%*
- ---------------------------------------------------------------------------------------------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.32) $ 9.93 1.22%*
Year ended 7/31/03 (0.34) $ 9.95 3.74%
Year ended 7/31/04 (0.26) $10.02 3.19%
Year ended 7/31/05 (0.28) $10.07 3.38%
Six months ended 1/31/06+ (0.23) $ 9.87 0.28%*
- ---------------------------------------------------------------------------------------------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.31) $ 9.93 1.20%*
Year ended 7/31/03 (0.34) $ 9.96 3.75%
Year ended 7/31/04 (0.26) $10.02 3.20%
Year ended 7/31/05 (0.28) $10.07 3.37%
Six months ended 1/31/06+ (0.23) $ 9.87 0.28%*
- ---------------------------------------------------------------------------------------------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.36) $ 9.93 1.69%*
Year ended 7/31/03 (0.39) $ 9.96 4.25%
Year ended 7/31/04 (0.31) $10.02 3.73%
Year ended 7/31/05 (0.34) $10.07 3.90%
Six months ended 1/31/06+ (0.25) $ 9.86 0.42%*
- ---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- -----------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND INSTITUTIONAL SHARES
11/29/05(d) to 1/31/06+ $ 50,332 0.74%** 5.19%** 1.24%** 16%
- -----------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05(d) to 1/31/06+ $ 56 0.99%** 4.64%** 63.68%** 16%
- -----------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05(d) to 1/31/06+ $ 10 1.74%** 3.68%** 87.49%** 16%
- -----------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05(d) to 1/31/06+ $ 10 1.74%** 3.68%** 87.50%** 16%
- -----------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05(d) to 1/31/06+ $ 10 1.24%** 4.17%** 87.01%** 16%
- -----------------------------------------------------------------------------------------------------------------------
BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $ 295,093 0.82% 6.51% 0.82% 135%
1/1/01 to 7/31/01(f) $ 281,795 0.83%** 4.87%** 0.84%** 131%
Year ended 7/31/02 $ 403,677 0.81% 4.74% 0.90% 229%
Year ended 7/31/03 $ 303,450 0.80% 3.86% 0.89% 332%
Year ended 7/31/04 $ 277,706 0.79% 2.75% 0.90% 389%
Year ended 7/31/05 $ 292,043 0.78% 3.28% 0.91% 385%
Six months ended 1/31/06+ $ 268,408 0.75%** 3.95%** 0.90%** 167%
- -----------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS A SHARES
Year ended 12/31/00 $ 6,663 1.07% 6.27% 1.07% 135%
1/1/01 to 7/31/01(f) $ 6,190 1.08%** 4.61%** 1.09%** 131%
Year ended 7/31/02 $ 19,949 1.06% 4.47% 1.16% 229%
Year ended 7/31/03 $ 20,572 1.05% 3.57% 1.14% 332%
Year ended 7/31/04 $ 22,559 1.04% 2.51% 1.15% 389%
Year ended 7/31/05 $ 15,876 1.03% 3.01% 1.16% 385%
Six months ended 1/31/06+ $ 13,639 1.00%** 3.70%** 1.15%** 167%
- -----------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 6,857 1.81%** 3.70%** 1.93%** 229%
Year ended 7/31/03 $ 7,418 1.80% 2.81% 1.89% 332%
Year ended 7/31/04 $ 4,512 1.79% 1.76% 1.90% 389%
Year ended 7/31/05 $ 3,907 1.78% 2.27% 1.91% 385%
Six months ended 1/31/06+ $ 2,989 1.75%** 2.94%** 1.90%** 167%
- -----------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 1,194 1.81%** 3.68%** 1.92%** 229%
Year ended 7/31/03 $ 1,246 1.80% 2.79% 1.89% 332%
Year ended 7/31/04 $ 768 1.79% 1.76% 1.90% 389%
Year ended 7/31/05 $ 649 1.78% 2.26% 1.91% 385%
Six months ended 1/31/06+ $ 435 1.75%** 2.93%** 1.90%** 167%
- -----------------------------------------------------------------------------------------------------------------------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 723 1.31%** 4.21%** 1.46%** 229%
Year ended 7/31/03 $ 737 1.30% 3.34% 1.39% 332%
Year ended 7/31/04 $ 655 1.29% 2.25% 1.40% 389%
Year ended 7/31/05 $ 622 1.28% 2.77% 1.41% 385%
Six months ended 1/31/06+ $ 438 1.25%** 3.43%** 1.40%** 167%
- -----------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
168-169 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.80 0.21@ (0.15) 0.06 (0.22) --
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.82 0.19@ (0.13) 0.06 (0.21) --
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.77 0.19@ (0.14) 0.05 (0.21) --
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.79 0.16@ (0.15) 0.01 (0.17) --
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 9.80 0.18@ (0.14) 0.04 (0.20) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.60) $ 9.66 9.74%
1/1/01 to 7/31/01(g) (0.33) $ 9.90 6.16%*
Year ended 7/31/02 (0.50) $ 9.98 6.15%
Year ended 7/31/03 (0.42) $10.04 4.77%
Year ended 7/31/04 (0.38) $ 9.93 2.71%
Year ended 7/31/05 (0.42) $ 9.80 2.85%
Six months ended 1/31/06+ (0.22) $ 9.64 0.75%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 12/31/00 (0.57) $ 9.68 9.44%
1/1/01 to 7/31/01(g) (0.32) $ 9.93 5.98%*
Year ended 7/31/02 (0.48) $10.01 5.78%
Year ended 7/31/03 (0.40) $10.06 4.52%
Year ended 7/31/04 (0.36) $ 9.95 2.45%
Year ended 7/31/05 (0.39) $ 9.82 2.67%
Six months ended 1/31/06+ (0.21) $ 9.67 0.61%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.31) $ 9.96 1.92%*
Year ended 7/31/03 (0.33) $10.01 3.78%
Year ended 7/31/04 (0.32) $ 9.90 2.06%
Year ended 7/31/05 (0.39) $ 9.77 2.58%
Six months ended 1/31/06+ (0.21) $ 9.61 0.61%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.30) $ 9.98 2.02%*
Year ended 7/31/03 (0.33) $10.03 3.78%
Year ended 7/31/04 (0.28) $ 9.92 1.72%
Year ended 7/31/05 (0.32) $ 9.79 1.91%
Six months ended 1/31/06+ (0.17) $ 9.63 0.12%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.20) $ 9.64 0.62%*
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $714,445 0.76% 6.29% 0.77% 168%
1/1/01 to 7/31/01(g) $663,571 0.78%** 4.52%** 0.78%** 141%
Year ended 7/31/02 $799,642 0.77% 4.53% 0.82% 229%
Year ended 7/31/03 $772,536 0.76% 3.72% 0.81% 252%
Year ended 7/31/04 $676,344 0.76% 3.13% 0.81% 189%
Year ended 7/31/05 $544,101 0.76% 3.69% 0.82% 104%
Six months ended 1/31/06+ $486,919 0.73%** 4.21%** 0.83%** 70%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 12/31/00 $ 9,130 1.01% 6.04% 1.02% 168%
1/1/01 to 7/31/01(g) $ 8,467 1.03%** 4.26%** 1.03%** 141%
Year ended 7/31/02 $ 31,977 1.02% 4.25% 1.07% 229%
Year ended 7/31/03 $ 36,471 1.01% 3.45% 1.06% 252%
Year ended 7/31/04 $ 37,500 1.01% 2.88% 1.07% 189%
Year ended 7/31/05 $ 29,798 1.01% 3.43% 1.07% 104%
Six months ended 1/31/06+ $ 26,897 0.98%** 3.96%** 1.08%** 70%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 2,580 1.77%** 3.45%** 1.84%** 229%
Year ended 7/31/03 $ 5,564 1.76% 2.64% 1.81% 252%
Year ended 7/31/04 $ 3,982 1.46% 2.42% 1.81% 189%
Year ended 7/31/05 $ 3,316 1.01% 3.44% 1.82% 104%
Six months ended 1/31/06+ $ 2,710 0.98%** 3.95%** 1.83%** 70%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 797 1.77%** 3.48%** 1.84%** 229%
Year ended 7/31/03 $ 2,319 1.76% 2.59% 1.81% 252%
Year ended 7/31/04 $ 1,620 1.76% 2.12% 1.81% 189%
Year ended 7/31/05 $ 1,096 1.76% 2.67% 1.82% 104%
Six months ended 1/31/06+ $ 1,007 1.73%** 3.21%** 1.83%** 70%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.18%** 3.75%** 1.18%** 70%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
170-171 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.37 0.14 (0.04) 0.10 (0.18) --
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.36 0.13 (0.03) 0.10 (0.17) --
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $ 9.36 0.09 (0.03) 0.06 (0.13) --
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 9.37 0.12 (0.04) 0.08 (0.16) --
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.08 0.20 (0.09) 0.11 (0.20) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.09 0.19 (0.09) 0.10 (0.19) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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) --
Six months ended 1/31/06+ $10.01 0.15 (0.09) 0.06 (0.15) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $10.09 0.16 (0.07) 0.09 (0.18) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.57) $ 9.66 8.12%
1/1/01 to 7/31/01(h) (0.32) $ 9.83 5.29%*
Year ended 7/31/02 (0.49) $ 9.82 4.96%
Year ended 7/31/03 (0.38) $ 9.75 3.23%
Year ended 7/31/04 (0.31) $ 9.57 1.31%
Year ended 7/31/05 (0.32) $ 9.37 1.16%
Six months ended 1/31/06+ (0.18) $ 9.29 1.23%*
- --------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 12/31/00 (0.56) $ 9.65 7.96%
1/1/01 to 7/31/01(h) (0.31) $ 9.82 5.20%*
Year ended 7/31/02 (0.47) $ 9.81 4.83%
Year ended 7/31/03 (0.37) $ 9.74 3.07%
Year ended 7/31/04 (0.29) $ 9.56 1.12%
Year ended 7/31/05 (0.30) $ 9.36 1.00%
Six months ended 1/31/06+ (0.17) $ 9.29 1.09%*
- --------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03(d) to 7/31/04 (0.22) $ 9.56 0.39%*
Year ended 7/31/05 (0.22) $ 9.36 0.23%
Six months ended 1/31/06+ (0.13) $ 9.29 0.68%*
- --------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.16) $ 9.29 0.98%*
- --------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (0.51) $10.06 11.10%
Year ended 7/31/02(i) (0.38) $10.42 7.55%
Year ended 7/31/03 (0.46) $10.29 3.19%
Year ended 7/31/04 (0.42) $10.12 2.42%
Year ended 7/31/05 (0.28) $10.08 2.39%
Six months ended 1/31/06+ (0.23) $ 9.96 1.10%*
- --------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/01 (0.50) $10.06 10.76%
Year ended 7/31/02(i) (0.36) $10.43 7.42%
Year ended 7/31/03 (0.44) $10.29 2.83%
Year ended 7/31/04 (0.39) $10.13 2.26%
Year ended 7/31/05 (0.26) $10.09 2.13%
Six months ended 1/31/06+ (0.22) $ 9.97 0.96%*
- --------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/01 (0.44) $10.01 9.98%
Year ended 7/31/02(i) (0.29) $10.36 6.53%
Year ended 7/31/03 (0.36) $10.22 2.12%
Year ended 7/31/04 (0.31) $10.05 1.41%
Year ended 7/31/05 (0.18) $10.01 1.39%
Six months ended 1/31/06+ (0.18) $ 9.89 0.58%*
- --------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.21) $ 9.97 0.88%
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- -------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $169,790 0.73% 6.03% 0.74% 73%
1/1/01 to 7/31/01(h) $233,444 0.74%** 4.48%** 0.75%** 56%
Year ended 7/31/02 $304,882 0.74% 4.02% 0.76% 111%
Year ended 7/31/03 $490,229 0.74% 2.59% 0.76% 72%
Year ended 7/31/04 $495,271 0.74% 1.96% 0.77% 90%
Year ended 7/31/05 $333,909 0.73% 2.35% 0.77% 68%
Six months ended 1/31/06+ $277,758 0.69%** 3.07%** 0.78%** 26%
- -------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 12/31/00 $ 3,505 0.88% 5.88% 0.99% 73%
1/1/01 to 7/31/01(h) $ 3,340 0.89%** 4.22%** 1.00%** 56%
Year ended 7/31/02 $ 19,019 0.90% 3.71% 1.01% 111%
Year ended 7/31/03 $ 33,975 0.89% 2.39% 1.01% 72%
Year ended 7/31/04 $ 28,262 0.89% 1.81% 1.02% 90%
Year ended 7/31/05 $ 17,117 0.98% 2.10% 1.02% 68%
Six months ended 1/31/06+ $ 14,232 0.94** 2.82%** 1.03%** 26%
- -------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03(d) to 7/31/04 $ 526 1.74%** 0.97%** 1.77%** 90%
Year ended 7/31/05 $ 362 1.73% 1.34% 1.77% 68%
Six months ended 1/31/06+ $ 252 1.69%** 2.05%** 1.78%** 26%
- -------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.17%** 2.56%** 1.26%** 26%
- -------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $ 48,770 0.74% 5.20% 0.98% 77%
Year ended 7/31/02(i) $ 50,809 0.87% 4.02% 1.02% 180%
Year ended 7/31/03 $ 50,649 0.81% 2.88% 0.92% 304%
Year ended 7/31/04 $ 43,820 0.76% 2.35% 0.91% 180%
Year ended 7/31/05 $ 33,246 0.82% 2.91% 0.97% 100%
Six months ended 1/31/06+ $ 30,748 0.76%** 3.72%** 0.97%** 63%
- -------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/01 $ 4,076 0.99% 4.93% 1.24% 77%
Year ended 7/31/02(i) $ 8,436 1.13% 3.70% 1.28% 180%
Year ended 7/31/03 $ 11,413 1.06% 2.61% 1.17% 304%
Year ended 7/31/04 $ 31,146 1.01% 2.10% 1.16% 180%
Year ended 7/31/05 $ 27,214 1.07% 2.67% 1.22% 100%
Six months ended 1/31/06+ $ 26,115 1.01%** 3.47%** 1.22%** 63%
- -------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/01 $ 531 1.71% 4.17% 2.05% 77%
Year ended 7/31/02(i) $ 2,623 1.89% 2.86% 2.03% 180%
Year ended 7/31/03 $ 10,006 1.80% 1.77% 1.91% 304%
Year ended 7/31/04 $ 4,255 1.77% 1.34% 1.91% 180%
Year ended 7/31/05 $ 2,844 1.82% 1.91% 1.97% 100%
Six months ended 1/31/06+ $ 2,221 1.77%** 2.71%** 1.97%** 63%
- -------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.19% 3.29% 1.36% 63%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
172-173 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.07 0.18 (0.10) 0.08 (0.18) (0.44)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.11 0.17 (0.10) 0.07 (0.17) (0.44)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.04 0.14 (0.11) 0.03 (0.13) (0.44)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.05 0.13 (0.10) 0.03 (0.13) (0.44)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.06 0.16 (0.10) 0.06 (0.16) (0.44)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.33 0.18 (0.10) 0.08 (0.18) (0.13)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.33 0.17 (0.09) 0.08 (0.17) (0.13)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.31 0.18 (0.10) 0.08 (0.17) (0.13)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.33 0.12 (0.09) 0.03 (0.13) (0.13)
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR
SHARES
8/1/06(d) to 1/31/06+ $10.33 0.16 (0.09) 0.07 (0.16) (0.13)
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.47) $10.68 12.40%
1/1/01 to 7/31/01(j) (0.31) $10.75 3.66%*
Year ended 7/31/02 (0.68) $10.74 6.57%
Year ended 7/31/03 (0.59) $10.49 3.18%
Year ended 7/31/04 (0.60) $10.40 4.84%
Year ended 7/31/05 (0.79) $10.07 4.53%
Six months ended 1/31/06+ (0.62) $ 9.53 0.87%*
- --------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/00 (0.44) $10.71 11.97%
1/1/01 to 7/31/01(j) (0.30) $10.78 3.58%*
Year ended 7/31/02 (0.66) $10.77 6.31%
Year ended 7/31/03 (0.56) $10.54 3.05%
Year ended 7/31/04 (0.57) $10.43 4.35%
Year ended 7/31/05 (0.76) $10.11 4.35%
Six months ended 1/31/06+ (0.61) $ 9.57 0.73%*
- --------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.50) $10.71 3.36%*
Year ended 7/31/03 (0.49) $10.47 2.26%
Year ended 7/31/04 (0.49) $10.37 3.71%
Year ended 7/31/05 (0.68) $10.04 3.50%
Six months ended 1/31/06+ (0.57) $ 9.50 0.34%*
- --------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.50) $10.72 3.42%*
Year ended 7/31/03 (0.49) $10.48 2.31%
Year ended 7/31/04 (0.49) $10.38 3.71%
Year ended 7/31/05 (0.68) $10.05 3.45%
Six months ended 1/31/06+ (0.57) $ 9.51 0.35%*
- --------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.55) $10.73 3.99%*
Year ended 7/31/03 (0.54) $10.49 2.76%
Year ended 7/31/04 (0.54) $10.39 4.22%
Year ended 7/31/05 (0.73) $10.06 4.01%
Six months ended 1/31/06+ (0.60) $ 9.52 0.61%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.46) $10.63 8.99%
1/1/01 to 7/31/01(k) (0.28) $10.78 4.06%*
Year ended 7/31/02 (0.62) $10.79 6.00%
Year ended 7/31/03 (0.43) $10.64 2.64%
Year ended 7/31/04 (0.45) $10.53 3.27%
Year ended 7/31/05 (0.50) $10.33 2.83%
Six months ended 1/31/06+ (0.31) $10.10 0.73%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/00 (0.44) $10.63 8.72%
1/1/01 to 7/31/01(k) (0.26) $10.78 3.91%*
Year ended 7/31/02 (0.59) $10.79 5.74%
Year ended 7/31/03 (0.41) $10.65 2.48%
Year ended 7/31/04 (0.43) $10.54 3.03%
Year ended 7/31/05 (0.47) $10.33 2.44%
Six months ended 1/31/06+ (0.30) $10.11 0.71%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.21) $10.78 3.02%*
Year ended 7/31/03 (0.33) $10.63 1.67%
Year ended 7/31/04 (0.39) $10.51 2.54%
Year ended 7/31/05 (0.47) $10.31 2.54%
Six months ended 1/31/06+ (0.30) $10.09 0.70%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.21) $10.78 3.03%*
Year ended 7/31/03 (0.33) $10.63 1.64%
Year ended 7/31/04 (0.34) $10.53 2.29%
Year ended 7/31/05 (0.39) $10.33 1.76%
Six months ended 1/31/06+ (0.26) $10.10 0.22%*
- --------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.29) $10.11 0.61%*
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $135,184 0.78% 4.61% 0.79% 119%
1/1/01 to 7/31/01(j) $125,382 0.79%** 4.21%** 0.81%** 89%
Year ended 7/31/02 $104,209 0.79% 4.06% 0.89% 97%
Year ended 7/31/03 $ 74,347 0.79% 3.98% 0.93% 21%
Year ended 7/31/04 $ 57,638 0.79% 4.05% 0.98% 35%
Year ended 7/31/05 $ 49,802 0.78% 3.86% 1.04% 27%
Six months ended 1/31/06+ $ 42,783 0.69%** 3.73%** 1.03%** 41%
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/00 $ 1,479 1.03% 4.36% 1.04% 119%
1/1/01 to 7/31/01(j) $ 1,114 1.04%** 3.98%** 1.06%** 89%
Year ended 7/31/02 $ 1,498 1.04% 3.83% 1.14% 97%
Year ended 7/31/03 $ 1,906 1.04% 3.71% 1.18% 21%
Year ended 7/31/04 $ 2,462 1.04% 3.81% 1.24% 35%
Year ended 7/31/05 $ 1,637 1.03% 3.63% 1.29% 27%
Six months ended 1/31/06+ $ 1,539 0.94%** 3.48%** 1.28%** 41%
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 511 1.80%** 3.08%** 1.96%** 97%
Year ended 7/31/03 $ 1,205 1.79% 2.97% 1.92% 21%
Year ended 7/31/04 $ 1,528 1.79% 3.06% 1.99% 35%
Year ended 7/31/05 $ 1,479 1.78% 2.85% 2.04% 27%
Six months ended 1/31/06+ $ 1,205 1.69%** 2.73%** 2.04%** 41%
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 210 1.80%** 3.10%** 1.94%** 97%
Year ended 7/31/03 $ 548 1.79% 2.98% 1.93% 21%
Year ended 7/31/04 $ 363 1.79% 3.05% 1.98% 35%
Year ended 7/31/05 $ 179 1.78% 2.91% 2.03% 27%
Six months ended 1/31/06+ $ 138 1.69%** 2.73%** 2.04%** 41%
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 174 1.30%** 3.57%** 1.50%** 97%
Year ended 7/31/03 $ 382 1.29% 3.47% 1.43% 21%
Year ended 7/31/04 $ 433 1.29% 3.56% 1.49% 35%
Year ended 7/31/05 $ 378 1.28% 3.36% 1.54% 27%
Six months ended 1/31/06+ $ 361 1.19%** 3.23%** 1.53%** 41%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $256,926 0.72% 4.43% 0.73% 59%
1/1/01 to 7/31/01(k) $237,929 0.74%** 4.29%** 0.74%** 36%
Year ended 7/31/02 $346,386 0.73% 3.56% 0.83% 86%
Year ended 7/31/03 $304,754 0.73% 3.36% 0.83% 85%
Year ended 7/31/04 $255,026 0.73% 3.42% 0.84% 84%
Year ended 7/31/05 $205,078 0.70% 3.45% 0.86% 30%
Six months ended 1/31/06+ $182,587 0.71%** 3.45%** 0.86%** 27%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/00 $ 2,989 0.97% 4.18% 0.98% 59%
1/1/01 to 7/31/01(k) $ 5,204 0.99%** 3.96%** 1.00%** 36%
Year ended 7/31/02 $ 4,445 0.98% 3.32% 1.07% 86%
Year ended 7/31/03 $ 4,317 0.98% 3.10% 1.08% 85%
Year ended 7/31/04 $ 4,479 0.98% 3.17% 1.09% 84%
Year ended 7/31/05 $ 3,064 0.95% 3.20% 1.10% 30%
Six months ended 1/31/06+ $ 2,888 0.96%** 3.20%** 1.11%** 27%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 303 1.74%** 2.41%** 1.87%** 86%
Year ended 7/31/03 $ 1,066 1.73% 2.35% 1.83% 85%
Year ended 7/31/04 $ 1,269 1.44% 2.71% 1.84% 84%
Year ended 7/31/05 $ 987 0.95% 3.20% 1.86% 30%
Six months ended 1/31/06+ $ 624 0.96%** 3.20%** 1.87%** 27%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 528 1.74%** 2.08%** 1.87%** 86%
Year ended 7/31/03 $ 973 1.73% 2.35% 1.83% 85%
Year ended 7/31/04 $ 366 1.73% 2.42% 1.83% 84%
Year ended 7/31/05 $ 157 1.69% 2.45% 1.85% 30%
Six months ended 1/31/06+ $ 89 1.71%** 2.45%** 1.87%** 27%
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.16% 3.05% 1.31% 27%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
174-175 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS 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)
Six months ended 1/31/06+ $10.24 0.18@ (0.10) 0.08 (0.18) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.25 0.16@ (0.09) 0.07 (0.17) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.03 0.12@ (0.09) 0.03 (0.13) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.20 0.12@ (0.09) 0.03 (0.12) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $10.25 0.15@ (0.10) 0.05 (0.16) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.03 0.14 (0.07) 0.07 (0.14) --
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.02 0.13 (0.07) 0.06 (0.13) --
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.02 0.09 (0.07) 0.02 (0.09) --
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/06+ $10.02 0.09 (0.07) 0.02 (0.09) --
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $10.03 0.11 (0.06) 0.05 (0.12) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/01 (0.41) $10.27 8.28%
Year ended 7/31/02(l) (0.38) $10.48 5.86%
Year ended 7/31/03 (0.37) $10.39 2.65%
Year ended 7/31/04 (0.38) $10.39 3.66%
Year ended 7/31/05 (0.42) $10.24 2.61%
Six months ended 1/31/06+ (0.21) $10.11 0.76%*
- --------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/01 (0.39) $10.28 8.04%
Year ended 7/31/02(l) (0.35) $10.48 5.50%
Year ended 7/31/03 (0.34) $10.39 2.39%
Year ended 7/31/04 (0.36) $10.39 3.40%
Year ended 7/31/05 (0.39) $10.25 2.36%
Six months ended 1/31/06+ (0.20) $10.12 0.71%*
- --------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
10/11/00(d) to 7/31/01 (0.30) $10.10 5.17%*
Year ended 7/31/02(l) (0.28) $10.29 4.76%
Year ended 7/31/03 (0.27) $10.19 1.59%
Year ended 7/31/04 (0.28) $10.18 2.62%
Year ended 7/31/05 (0.32) $10.03 1.66%
Six months ended 1/31/06+ (0.16) $ 9.90 0.26%*
- --------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/01 (0.33) $10.25 7.31%
Year ended 7/31/02(l) (0.28) $10.44 4.71%
Year ended 7/31/03 (0.26) $10.35 1.65%
Year ended 7/31/04 (0.28) $10.35 2.65%
Year ended 7/31/05 (0.31) $10.20 1.60%
Six months ended 1/31/06+ (0.15) $10.08 0.24%*
- --------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.19) $10.11 0.65%*
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 (0.44) $10.10 6.31%
1/1/01 to 7/31/01(m) (0.25) $10.25 4.01%*
Year ended 7/31/02 (0.43) $10.39 5.65%
Year ended 7/31/03 (0.34) $10.31 2.70%
Year ended 7/31/04 (0.29) $10.17 1.43%
Year ended 7/31/05 (0.29) $10.03 1.49%
Six months ended 1/31/06+ (0.14) $ 9.96 0.68%*
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/00 (0.42) $10.09 6.05%
1/1/01 to 7/31/01(m) (0.24) $10.24 4.02%*
Year ended 7/31/02 (0.41) $10.38 5.51%
Year ended 7/31/03 (0.33) $10.30 2.45%
Year ended 7/31/04 (0.28) $10.16 1.37%
Year ended 7/31/05 (0.27) $10.02 1.33%
Six months ended 1/31/06+ (0.13) $ 9.95 0.60%*
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.26) $10.38 2.82%*
Year ended 7/31/03 (0.24) $10.30 1.70%
Year ended 7/31/04 (0.19) $10.16 0.43%
Year ended 7/31/05 (0.18) $10.02 0.46%
Six months ended 1/31/06+ (0.09) $ 9.95 0.17%*
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.26) $10.38 2.89%*
Year ended 7/31/03 (0.24) $10.29 1.60%
Year ended 7/31/04 (0.19) $10.16 0.48%
Year ended 7/31/05 (0.18) $10.02 0.43%
Six months ended 1/31/06+ (0.09) $ 9.95 0.16%*
- --------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ (0.12) $ 9.96 0.48%*
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- -------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $166,802 0.76% 4.09% 0.82% 26%
Year ended 7/31/02(l) $169,455 0.86% 3.80% 0.91% 28%
Year ended 7/31/03 $151,478 0.77% 3.49% 0.85% 20%
Year ended 7/31/04 $126,343 0.78% 3.39% 0.86% 15%
Year ended 7/31/05 $104,554 0.79% 3.37% 0.87% 6%
Six months ended 1/31/06+ $ 93,922 0.80%** 3.45%** 0.90%** 5%
- -------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/01 $ 14,516 1.01% 3.83% 1.07% 26%
Year ended 7/31/02(l) $ 18,638 1.11% 3.53% 1.17% 28%
Year ended 7/31/03 $ 25,177 1.02% 3.23% 1.10% 20%
Year ended 7/31/04 $ 26,962 1.03% 3.14% 1.11% 15%
Year ended 7/31/05 $ 27,870 1.04% 3.13% 1.12% 6%
Six months ended 1/31/06+ $ 24,658 1.05%** 3.20%** 1.15%** 5%
- -------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
10/11/00(d) to 7/31/01 $ 898 1.78%** 2.99%** 1.84%** 26%
Year ended 7/31/02(l) $ 2,732 1.87% 2.72% 1.93% 28%
Year ended 7/31/03 $ 5,101 1.76% 2.48% 1.84% 20%
Year ended 7/31/04 $ 4,714 1.78% 2.39% 1.86% 15%
Year ended 7/31/05 $ 4,279 1.79% 2.37% 1.87% 6%
Six months ended 1/31/06+ $ 3,765 1.80%** 2.45%** 1.90%** 5%
- -------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/01 $ 1,516 1.72% 3.12% 1.89% 26%
Year ended 7/31/02(l) $ 3,746 1.88% 2.72% 1.94% 28%
Year ended 7/31/03 $ 6,395 1.77% 2.48% 1.85% 20%
Year ended 7/31/04 $ 4,328 1.78% 2.39% 1.86% 15%
Year ended 7/31/05 $ 3,820 1.79% 2.37% 1.87% 6%
Six months ended 1/31/06+ $ 1,330 1.81%** 2.44%** 1.90%** 5%
- -------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.30% 2.95% 1.46% 5%
- -------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $ 87,926 0.68% 4.17% 0.69% 36%
1/1/01 to 7/31/01(m) $ 80,556 0.69%** 4.00%** 0.71%** 19%
Year ended 7/31/02 $ 96,269 0.69% 3.64% 0.78% 25%
Year ended 7/31/03 $118,867 0.69% 3.02% 0.77% 12%
Year ended 7/31/04 $105,361 0.69% 2.75% 0.78% 21%
Year ended 7/31/05 $ 74,099 0.68% 2.70% 0.80% 3%
Six months ended 1/31/06+ $ 57,665 0.68%** 2.72%** 0.85%** 2%
- -------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 12/31/00 $ 3,629 0.83% 4.01% 0.94% 36%
1/1/01 to 7/31/01(m) $ 3,569 0.84%** 3.85%** 0.96%** 19%
Year ended 7/31/02 $ 3,575 0.84% 3.49% 1.03% 25%
Year ended 7/31/03 $ 8,006 0.84% 2.84% 1.02% 12%
Year ended 7/31/04 $ 7,294 0.84% 2.60% 1.03% 21%
Year ended 7/31/05 $ 4,713 0.83% 2.55% 1.05% 3%
Six months ended 1/31/06+ $ 5,228 0.83%** 2.56%** 1.10%** 2%
- -------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 374 1.70%** 2.48%** 1.84%** 25%
Year ended 7/31/03 $ 2,010 1.69% 1.95% 1.76% 12%
Year ended 7/31/04 $ 1,574 1.69% 1.76% 1.78% 21%
Year ended 7/31/05 $ 1,175 1.68% 1.71% 1.80% 3%
Six months ended 1/31/06+ $ 818 1.68%** 1.72%** 1.85%** 2%
- -------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 795 1.70%** 2.47%** 1.82%** 25%
Year ended 7/31/03 $ 3,967 1.69% 1.97% 1.77% 12%
Year ended 7/31/04 $ 1,794 1.69% 1.76% 1.78% 21%
Year ended 7/31/05 $ 449 1.68% 1.69% 1.80% 3%
Six months ended 1/31/06+ $ 264 1.68%** 1.73%** 1.85%** 2%
- -------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
8/1/06(d) to 1/31/06+ $ 3 1.18%** 2.18%** 1.20%** 2%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
176-177 Spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(a) During various periods, certain fees were reduced. The ratios shown do not
include these fee reductions.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(c) The Fund changed its fiscal year end to July 31 from December 31.
(d) Reflects date of commencement of operations.
(e) As required, effective August 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discounts on debt securities. The effect of this change for the
period ended July 31, 2002 for the Balanced Fund, Institutional, Class A,
Class B, Class C and Advisor Shares was to increase net investment income
per share by $0.02, decrease net realized and unrealized gains and losses
per share by ($0.02) and increase the ratio of net investment income to
average net assets from 0.96% to 1.11%, 0.75% to 0.86%, 0.09% to 0.10%,
0.10% to 0.11% and 0.47% to 0.55%, respectively. Per share, ratios and
supplemental data for periods prior to July 31, 2001 have not been
restated to reflect this change in presentation.
(f) Reflects operations for the period from January 1, 2001 to July 31, 2001.
The Fund changed its fiscal year end to July 31 from December 31. As
required, effective January 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premiums on debt securities. The effect of this change for the
period ended July 31, 2001 for the Bond Fund, Institutional and Class A
Shares was to decrease net investment income per share by ($0.02),
increase net realized and unrealized gains and losses per share by $0.02
and decrease the ratio of net investment income to average net assets from
5.21% to 4.87% and 4.95% to 4.61%, respectively. Per share, ratios and
supplemental data for periods prior to December 31, 2000 have not been
restated to reflect this change in presentation.
(g) Reflects operations for the period from January 1, 2001 to July 31, 2001.
The Fund changed its fiscal year end to July 31 from December 31. As
required, effective January 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premiums on debt securities. The effect of this change for the
period ended July 31, 2001 for the Intermediate Bond Fund, Institutional
and Class A Shares was to decrease net investment income per share by
($0.03), increase net realized and unrealized gains and losses per share
by $0.03 and decrease the ratio of net investment income to average net
assets from 4.97% to 4.52% and 4.70% to 4.26%, respectively. Per share,
ratios and supplemental data for periods prior to December 31, 2000 have
not been restated to reflect this change in presentation.
(h) Reflects operations for the period from January 1, 2001 to July 31, 2001.
The Fund changed its fiscal year end to July 31 from December 31. As
required, effective January 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premiums on debt securities. The effect of this change for the
period ended July 31, 2001 for the Short Term Bond Fund, Institutional and
Class A Shares was to decrease net investment income per share by ($0.02),
increase net realized and unrealized gains and losses per share by $0.02
and decrease the ratio of net investment income to average net assets from
4.93% to 4.48% and 4.67% to 4.22%, respectively. Per share, ratios and
supplemental data for periods prior to December 31, 2000 have not been
restated to reflect this change in presentation.
(i) As required, effective August 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discounts on debt securities. The effect of this change for the
period ended July 31, 2002 for the U.S. Government Bond Fund,
Institutional, Class A and Class C Shares was to increase net investment
income per share by $0.02, decrease net realized and unrealized gains and
losses per share by ($0.02) and increase the ratio of net investment
income to average net assets from 3.82% to 4.02%, 3.52% to 3.70% and 2.71%
to 2.86%, respectively. Per share, ratios and supplemental data for the
periods prior to July 31, 2001 have not been restated to reflect this
change in presentation.
(j) Reflects operations for the period from January 1, 2001 to July 31, 2001.
The Fund changed its fiscal year end to July 31 from December 31. As
required, effective January 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discounts on debt securities. The effect of this change for the
period ended July 31, 2001 for the Municipal Bond Fund, Institutional and
Class A Shares was to increase net investment income per share by $0.00,
decrease net realized and unrealized gains and losses per share by ($0.00)
and increase the ratio of net investment income to average net assets from
4.20% to 4.21% and 3.97% to 3.98%, respectively. Per share, ratios and
supplemental data for periods prior to December 31, 2000 have not been
restated to reflect this change in presentation.
(k) Reflects operations for the period from January 1, 2001 to July 31, 2001.
The Fund changed its fiscal year end to July 31 from December 31. As
required, effective January 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discounts on debt securities. The effect of this change for the
period ended July 31, 2001 for the Intermediate Municipal Bond Fund,
Institutional and Class A Shares was to increase net investment income per
share by $0.00, decrease net realized and unrealized gains and losses per
share by ($0.00) and increase the ratio of net investment income to
average net assets from 4.25% to 4.29% and 3.92% to 3.96%, respectively.
Per share, ratios and supplemental data for periods prior to December 31,
2000 have not been restated to reflect this change in presentation.
(l) As required, effective August 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discounts on debt securities. The effect of this change for the
period ended July 31, 2002 for the Ohio Municipal Bond Fund,
Institutional, Class A, Class B and Class C Shares was to increase net
investment income per share by $0.00, decrease net realized and unrealized
gains and losses per share by ($0.00) and increase the ratio of net
investment income to average net assets from 3.77% to 3.80%, 3.50% to
3.53%, 2.69% to 2.72% and 2.70% to 2.72%, respectively. Per share, ratios
and supplemental data for periods prior to July 31, 2001 have not been
restated to reflect this change in presentation.
(m) Reflects operations for the period from January 1, 2001 to July 31, 2001.
The Fund changed its fiscal year end to July 31 from December 31. As
required, effective January 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discounts on debt securities. The effect of this change for the
period ended July 31, 2001 for the Michigan Municipal Bond Fund,
Institutional and Class A Shares was to increase net investment income per
share by $0.00, decrease net realized and unrealized gains and losses per
share by ($0.00) and increase the ratio of net investment income to
average net assets from 3.99% to 4.00% and 3.84% to 3.85%, respectively.
Per share, ratios and supplemental data for periods prior to December 31,
2000 have not been restated to reflect this change in presentation.
^ Amount is less than $0.005 per share.
+ Unaudited.
++ Formerly the Select Stock Fund.
* Not annualized.
** Annualized.
# Represents income or gains/(losses) from affiliates.
@ Average shares method used in calculation.
SEE NOTES TO FINANCIAL STATEMENTS
178
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
As a shareholder of the Fifth Third Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; (2)
ongoing costs, including management fees; distribution and/or service 12b-1
fees; and other Fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fifth Third Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from August 1, 2005 through January 31,
2006.
EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
----------- ----------- ---------------- ----------------
Small Cap Growth Fund Institutional Shares $1,000.00 $1,108.70 $5.42 1.02%
Class A Shares 1,000.00 1,106.90 6.74 1.27%
Class B Shares 1,000.00 1,103.10 10.71 2.02%
Class C Shares 1,000.00 1,102.90 10.71 2.02%
Advisor Shares 1,000.00 1,105.90 8.07 1.52%
Mid Cap Growth Fund Institutional Shares 1,000.00 1,118.20 5.77 1.08%
Class A Shares 1,000.00 1,116.90 7.10 1.33%
Class B Shares 1,000.00 1,112.60 11.08 2.08%
Class C Shares 1,000.00 1,113.40 11.08 2.08%
Advisor Shares 1,000.00 1,115.50 8.42 1.58%
Quality Growth Fund Institutional Shares 1,000.00 1,047.10 5.57 1.08%
Class A Shares 1,000.00 1,046.10 6.86 1.33%
Class B Shares 1,000.00 1,042.50 10.71 2.08%
Class C Shares 1,000.00 1,042.30 10.71 2.08%
Advisor Shares 1,000.00 1,044.60 8.14 1.58%
Large Cap Core Fund Institutional Shares 1,000.00 1,050.20 4.75 0.92%
Class A Shares 1,000.00 1,048.70 6.04 1.17%
Class B Shares 1,000.00 1,045.10 9.90 1.92%
Class C Shares 1,000.00 1,045.70 9.90 1.92%
Advisor Shares 1,000.00 1,047.50 7.33 1.42%
Equity Index Fund Institutional Shares 1,000.00 1,045.90 0.98 0.19%
Class A Shares 1,000.00 1,044.80 2.27 0.44%
Class B Shares 1,000.00 1,040.30 6.12 1.19%
Class C Shares 1,000.00 1,040.30 6.12 1.19%
Advisor Shares 1,000.00 1,043.30 3.55 0.69%
Select Shares 1,000.00 1,045.60 1.39 0.27%
Preferred Shares 1,000.00 1,045.20 1.75 0.34%
Trust Shares 1,000.00 1,044.60 2.27 0.44%
Balanced Fund Institutional Shares 1,000.00 1,014.00 4.97 0.98%
Class A Shares 1,000.00 1,013.60 6.24 1.23%
Class B Shares 1,000.00 1,009.00 10.03 1.98%
Class C Shares 1,000.00 1,009.10 10.03 1.98%
Advisor Shares 1,000.00 1,012.30 7.51 1.48%
Micro Cap Value Fund Institutional Shares 1,000.00 1,092.80 7.28 1.38%
Class A Shares 1,000.00 1,092.00 8.59 1.63%
Class B Shares 1,000.00 1,086.40 12.52 2.38%
Class C Shares 1,000.00 1,086.40 12.52 2.38%
Advisor Shares 1,000.00 1,089.20 9.90 1.88%
___________________________
* Expenses are equal to the average 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.
179
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
----------- ----------- ---------------- ----------------
Small Cap Value Fund Institutional Shares $1,000.00 $1,065.00 $6.30 1.21%
Class A Shares 1,000.00 1,063.60 7.59 1.46%
Class B Shares 1,000.00 1,059.70 11.47 2.21%
Class C Shares 1,000.00 1,059.30 11.47 2.21%
Advisor Shares 1,000.00 1,062.20 8.89 1.71%
Multi Cap Value Fund Institutional Shares 1,000.00 1,067.30 6.72 1.29%
Class A Shares 1,000.00 1,065.90 8.02 1.54%
Class B Shares 1,000.00 1,061.70 11.90 2.29%
Class C Shares 1,000.00 1,061.70 11.90 2.29%
Advisor Shares 1,000.00 1,064.30 9.31 1.79%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,037.40 5.49 1.07%
Class A Shares 1,000.00 1,036.40 6.78 1.32%
Class B Shares 1,000.00 1,032.80 10.61 2.07%
Class C Shares 1,000.00 1,032.60 10.61 2.07%
Advisor Shares 1,000.00 1,035.00 8.00 1.56%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 1,068.60 0.42 0.08%
Class A Shares 1,000.00 1,067.50 1.72 0.33%
Class B Shares 1,000.00 1,063.60 5.62 1.08%
Class C Shares 1,000.00 1,063.00 5.62 1.08%
Advisor Shares 1,000.00 1,065.60 3.02 0.58%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 1,056.10 0.41 0.08%
Class A Shares 1,000.00 1,054.20 1.71 0.33%
Class B Shares 1,000.00 1,050.80 5.58 1.08%
Class C Shares 1,000.00 1,049.90 5.58 1.08%
Advisor Shares 1,000.00 1,053.70 3.00 0.58%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 1,044.10 0.41 0.08%
Class A Shares 1,000.00 1,042.90 1.70 0.33%
Class B Shares 1,000.00 1,039.30 5.55 1.08%
Class C Shares 1,000.00 1,039.20 5.55 1.08%
Advisor Shares 1,000.00 1,040.70 2.98 0.58%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 1,035.70 0.41 0.08%
Class A Shares 1,000.00 1,034.50 1.69 0.33%
Class B Shares 1,000.00 1,030.70 5.53 1.08%
Class C Shares 1,000.00 1,030.60 5.53 1.08%
Advisor Shares 1,000.00 1,033.30 2.97 0.58%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,024.60 0.41 0.08%
Class A Shares 1,000.00 1,023.30 1.68 0.33%
Class B Shares 1,000.00 1,019.40 5.50 1.08%
Class C Shares 1,000.00 1,020.20 5.50 1.08%
Advisor Shares 1,000.00 1,021.60 2.96 0.58%
Strategic Income Fund Institutional Shares 1,000.00 1,010.50 6.69 1.32%
Class A Shares 1,000.00 1,009.30 7.95 1.57%
Class B Shares 1,000.00 1,005.50 11.73 2.32%
Class C Shares 1,000.00 1,004.70 11.72 2.32%
Advisor Shares 1,000.00 1,007.10 9.21 1.82%
Dividend Growth Fund Institutional Shares 1,000.00 1,024.90 4.95 0.97%
Class A Shares 1,000.00 1,023.90 6.99 1.37%
Class B Shares 1,000.00 1,019.70 10.54 2.07%
Class C Shares 1,000.00 1,019.70 10.74 2.11%
Advisor Shares 1,000.00 1,022.50 7.29 1.43%
Technology Fund Institutional Shares 1,000.00 1,168.70 8.31 1.52%
Class A Shares 1,000.00 1,167.90 9.73 1.78%
Class B Shares 1,000.00 1,162.40 13.79 2.53%
Class C Shares 1,000.00 1,161.70 13.79 2.53%
Advisor Shares 1,000.00 1,166.50 10.98 2.01%
___________________________
* Expenses are equal to the average 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.
180
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
----------- ----------- ---------------- ----------------
International Equity Fund Institutional Shares $1,000.00 $1,205.80 $7.51 1.35%
Class A Shares 1,000.00 1,203.40 8.89 1.60%
Class B Shares 1,000.00 1,199.70 13.03 2.35%
Class C Shares 1,000.00 1,200.20 13.03 2.35%
Advisor Shares 1,000.00 1,203.00 10.27 1.85%
High Yield Bond Fund^ Institutional Shares 1,000.00 1,014.70 1.31 0.74%
Class A Shares 1,000.00 1,014.20 1.75 0.99%
Class B Shares 1,000.00 1,013.00 3.07 1.74%
Class C Shares 1,000.00 1,012.80 3.07 1.74%
Advisor Shares 1,000.00 1,013.80 2.19 1.24%
Bond Fund Institutional Shares 1,000.00 1,007.80 3.80 0.75%
Class A Shares 1,000.00 1,005.60 5.06 1.00%
Class B Shares 1,000.00 1,002.80 8.83 1.75%
Class C Shares 1,000.00 1,002.80 8.83 1.75%
Advisor Shares 1,000.00 1,004.20 6.31 1.25%
Intermediate Bond Fund Institutional Shares 1,000.00 1,007.50 3.69 0.73%
Class A Shares 1,000.00 1,006.10 4.96 0.98%
Class B Shares 1,000.00 1,006.10 4.96 0.98%
Class C Shares 1,000.00 1,001.20 8.73 1.73%
Advisor Shares 1,000.00 1,006.20 5.97 1.18%
Short Term Bond Fund Institutional Shares 1,000.00 1,012.30 3.50 0.69%
Class A Shares 1,000.00 1,010.90 4.76 0.94%
Class C Shares 1,000.00 1,006.80 8.55 1.69%
Advisor Shares 1,000.00 1,009.80 5.93 1.17%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,011.00 3.85 0.76%
Class A Shares 1,000.00 1,009.60 5.12 1.01%
Class C Shares 1,000.00 1,005.80 8.95 1.77%
Advisor Shares 1,000.00 1,008.80 6.03 1.19%
Municipal Bond Fund Institutional Shares 1,000.00 1,008.70 3.49 0.69%
Class A Shares 1,000.00 1,007.30 4.76 0.94%
Class B Shares 1,000.00 1,003.40 8.53 1.69%
Class C Shares 1,000.00 1,003.50 8.53 1.69%
Advisor Shares 1,000.00 1,006.10 6.02 1.19%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,007.30 3.59 0.71%
Class A Shares 1,000.00 1,007.10 4.86 0.96%
Class B Shares 1,000.00 1,007.00 4.86 0.96%
Class C Shares 1,000.00 1,002.20 8.63 1.71%
Advisor Shares 1,000.00 1,006.10 5.87 1.16%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,007.60 4.05 0.80%
Class A Shares 1,000.00 1,007.10 5.31 1.05%
Class B Shares 1,000.00 1,002.60 9.09 1.80%
Class C Shares 1,000.00 1,002.40 9.14 1.81%
Advisor Shares 1,000.00 1,006.50 6.57 1.30%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,006.80 3.44 0.68%
Class A Shares 1,000.00 1,006.00 4.20 0.83%
Class B Shares 1,000.00 1,001.70 8.48 1.68%
Class C Shares 1,000.00 1,001.60 8.48 1.68%
Advisor Shares 1,000.00 1,004.80 5.96 1.18%
___________________________
* Expenses are equal to the average value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
^ Information shown reflects values using expense ratios and rates of return
for the period from November 29, 2005 (date of commencement of operations)
to January 31, 2006.
181
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. However, you may use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
----------- ----------- ---------------- ----------------
Small Cap Growth Fund Institutional Shares $1,000.00 $1,020.06 $5.19 1.02%
Class A Shares 1,000.00 1,018.80 6.46 1.27%
Class B Shares 1,000.00 1,015.02 10.26 2.02%
Class C Shares 1,000.00 1,015.02 10.26 2.02%
Advisor Shares 1,000.00 1,017.54 7.73 1.52%
Mid Cap Growth Fund Institutional Shares 1,000.00 1,019.76 5.50 1.08%
Class A Shares 1,000.00 1,018.50 6.77 1.33%
Class B Shares 1,000.00 1,014.72 10.56 2.08%
Class C Shares 1,000.00 1,014.72 10.56 2.08%
Advisor Shares 1,000.00 1,017.24 8.03 1.58%
Quality Growth Fund Institutional Shares 1,000.00 1,019.76 5.50 1.08%
Class A Shares 1,000.00 1,018.50 6.77 1.33%
Class B Shares 1,000.00 1,014.72 10.56 2.08%
Class C Shares 1,000.00 1,014.72 10.56 2.08%
Advisor Shares 1,000.00 1,017.24 8.03 1.58%
Large Cap Core Fund Institutional Shares 1,000.00 1,020.57 4.69 0.92%
Class A Shares 1,000.00 1,019.31 5.96 1.17%
Class B Shares 1,000.00 1,015.53 9.75 1.92%
Class C Shares 1,000.00 1,015.53 9.75 1.92%
Advisor Shares 1,000.00 1,018.05 7.22 1.42%
Equity Index Fund Institutional Shares 1,000.00 1,024.25 0.97 0.19%
Class A Shares 1,000.00 1,022.99 2.24 0.44%
Class B Shares 1,000.00 1,019.21 6.06 1.19%
Class C Shares 1,000.00 1,019.21 6.06 1.19%
Advisor Shares 1,000.00 1,021.73 3.52 0.69%
Select Shares 1,000.00 1,023.84 1.38 0.27%
Preferred Shares 1,000.00 1,023.49 1.73 0.34%
Trust Shares 1,000.00 1,022.99 2.24 0.44%
Balanced Fund Institutional Shares 1,000.00 1,020.27 4.99 0.98%
Class A Shares 1,000.00 1,019.00 6.26 1.23%
Class B Shares 1,000.00 1,015.22 10.06 1.98%
Class C Shares 1,000.00 1,015.22 10.06 1.98%
Advisor Shares 1,000.00 1,017.74 7.53 1.48%
Micro Cap Value Fund Institutional Shares 1,000.00 1,018.25 7.02 1.38%
Class A Shares 1,000.00 1,016.99 8.29 1.63%
Class B Shares 1,000.00 1,013.21 12.08 2.38%
Class C Shares 1,000.00 1,013.21 12.08 2.38%
Advisor Shares 1,000.00 1,015.73 9.55 1.88%
Small Cap Value Fund Institutional Shares 1,000.00 1,019.11 6.16 1.21%
Class A Shares 1,000.00 1,017.85 7.43 1.46%
Class B Shares 1,000.00 1,014.06 11.22 2.21%
Class C Shares 1,000.00 1,014.06 11.22 2.21%
Advisor Shares 1,000.00 1,016.59 8.69 1.71%
___________________________
* Expenses are equal to the average 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.
182
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
----------- ----------- ---------------- ----------------
Multi Cap Value Fund Institutional Shares $1,000.00 $1,018.70 $6.56 1.29%
Class A Shares 1,000.00 1,017.44 7.83 1.54%
Class B Shares 1,000.00 1,013.66 11.62 2.29%
Class C Shares 1,000.00 1,013.66 11.62 2.29%
Advisor Shares 1,000.00 1,016.18 9.10 1.79%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,019.81 5.45 1.07%
Class A Shares 1,000.00 1,018.55 6.72 1.32%
Class B Shares 1,000.00 1,014.77 10.51 2.07%
Class C Shares 1,000.00 1,014.77 10.51 2.07%
Advisor Shares 1,000.00 1,017.34 7.93 1.56%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
Advisor Shares 1,000.00 1,022.28 2.96 0.58%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
Advisor Shares 1,000.00 1,022.28 2.96 0.58%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
Advisor Shares 1,000.00 1,022.28 2.96 0.58%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
Advisor Shares 1,000.00 1,022.28 2.96 0.58%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,024.80 0.41 0.08%
Class A Shares 1,000.00 1,023.54 1.68 0.33%
Class B Shares 1,000.00 1,019.76 5.50 1.08%
Class C Shares 1,000.00 1,019.76 5.50 1.08%
Advisor Shares 1,000.00 1,022.28 2.96 0.58%
Strategic Income Fund Institutional Shares 1,000.00 1,018.55 6.72 1.32%
Class A Shares 1,000.00 1,017.29 7.98 1.57%
Class B Shares 1,000.00 1,013.51 11.77 2.32%
Class C Shares 1,000.00 1,013.51 11.77 2.32%
Advisor Shares 1,000.00 1,016.03 9.25 1.82%
Dividend Growth Fund Institutional Shares 1,000.00 1,020.32 4.94 0.97%
Class A Shares 1,000.00 1,018.30 6.97 1.37%
Class B Shares 1,000.00 1,014.77 10.51 2.07%
Class C Shares 1,000.00 1,014.57 10.71 2.11%
Advisor Shares 1,000.00 1,018.00 7.27 1.43%
Technology Fund Institutional Shares 1,000.00 1,017.54 7.73 1.52%
Class A Shares 1,000.00 1,016.23 9.05 1.78%
Class B Shares 1,000.00 1,012.45 12.83 2.53%
Class C Shares 1,000.00 1,012.45 12.83 2.53%
Advisor Shares 1,000.00 1,015.07 10.21 2.01%
International Equity Fund Institutional Shares 1,000.00 1,018.40 6.87 1.35%
Class A Shares 1,000.00 1,017.14 8.13 1.60%
Class B Shares 1,000.00 1,013.36 11.93 2.35%
Class C Shares 1,000.00 1,013.36 11.93 2.35%
Advisor Shares 1,000.00 1,015.88 9.40 1.85%
_____________________
* Expenses are equal to the average 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.
183
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
----------- ----------- ---------------- ----------------
High Yield Bond Fund ^ Institutional Shares $1,000.00 $1,021.48 $3.77 0.74%
Class A Shares 1,000.00 1,020.21 5.04 0.99%
Class B Shares 1,000.00 1,016.43 8.84 1.74%
Class C Shares 1,000.00 1,016.43 8.84 1.74%
Advisor Shares 1,000.00 1,018.95 6.31 1.24%
Bond Fund Institutional Shares 1,000.00 1,021.42 3.82 0.75%
Class A Shares 1,000.00 1,020.16 5.09 1.00%
Class B Shares 1,000.00 1,016.38 8.89 1.75%
Class C Shares 1,000.00 1,016.38 8.89 1.75%
Advisor Shares 1,000.00 1,018.90 6.36 1.25%
Intermediate Bond Fund Institutional Shares 1,000.00 1,021.53 3.72 0.73%
Class A Shares 1,000.00 1,020.27 4.99 0.98%
Class B Shares 1,000.00 1,020.27 4.99 0.98%
Class C Shares 1,000.00 1,016.48 8.79 1.73%
Advisor Shares 1,000.00 1,019.26 6.01 1.18%
Short Term Bond Fund Institutional Shares 1,000.00 1,021.73 3.52 0.69%
Class A Shares 1,000.00 1,020.47 4.79 0.94%
Class C Shares 1,000.00 1,016.69 8.59 1.69%
Advisor Shares 1,000.00 1,019.31 5.96 1.17%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,021.37 3.87 0.76%
Class A Shares 1,000.00 1,020.11 5.14 1.01%
Class C Shares 1,000.00 1,016.28 9.00 1.77%
Advisor Shares 1,000.00 1,019.21 6.06 1.19%
Municipal Bond Fund Institutional Shares 1,000.00 1,021.73 3.52 0.69%
Class A Shares 1,000.00 1,020.47 4.79 0.94%
Class B Shares 1,000.00 1,016.69 8.59 1.69%
Class C Shares 1,000.00 1,016.69 8.59 1.69%
Advisor Shares 1,000.00 1,019.21 6.06 1.19%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,021.63 3.62 0.71%
Class A Shares 1,000.00 1,020.37 4.89 0.96%
Class B Shares 1,000.00 1,020.37 4.89 0.96%
Class C Shares 1,000.00 1,016.59 8.69 1.71%
Advisor Shares 1,000.00 1,019.36 5.90 1.16%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,021.17 4.08 0.80%
Class A Shares 1,000.00 1,019.91 5.35 1.05%
Class B Shares 1,000.00 1,016.13 9.15 1.80%
Class C Shares 1,000.00 1,016.08 9.20 1.81%
Advisor Shares 1,000.00 1,018.65 6.61 1.30%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,021.78 3.47 0.68%
Class A Shares 1,000.00 1,021.02 4.23 0.83%
Class B Shares 1,000.00 1,016.74 8.54 1.68%
Class C Shares 1,000.00 1,016.74 8.54 1.68%
Advisor Shares 1,000.00 1,019.26 6.01 1.18%
___________________________
* Expenses are equal to the average value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
^ Information shown reflects values using expense ratios and rates of return
for the period from November 29, 2005 (date of commencement of operations)
to January 31, 2006.
184
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENTS.
The Board of Trustees of Fifth Third Funds (the "Trust"), at a meeting held on
September 28 - 29, 2005, formally considered the Trust's investment advisory
agreement with Fifth Third Asset Management, Inc. ("FTAM" or the "Adviser") with
respect to all funds of the Trust and sub-advisory agreement of FTAM with Morgan
Stanley Investment Management Inc. ("MSIM" or the "Sub-Adviser") with respect to
the International Equity Fund. The Board of Trustees also formally considered
the initial approval of a sub-advisory agreement of FTAM with Fort Washington
Investment Advisors, Inc. ("Fort Washington" or, also a "Sub-Adviser") (the
"Sub-Advisers" collectively with the Adviser, the "Advisers") with respect to
the proposed High Yield Bond Fund (collectively, the "Advisory Agreements").
The Board of Trustees (the "Board" or the "Trustees") reviewed extensive
material in connection with their review of the Advisory Agreements, including
data from Lipper, Inc. ("Lipper"), an independent source of mutual fund data,
which provided comparisons with industry averages for comparable funds of
advisory fees, 12b-1 fees, non 12b-1 fees, transfer agency fees, custodian fees,
and total fund expenses. The data reflected FTAM's fee waivers in place, as well
as FTAM's contractual investment advisory fee levels. FTAM also provided the
Board with the results of a two-pronged performance and expense test developed
by FTAM with the data provided from Lipper. The information provided to the
Trustees also included a report from an independent evaluator of brokerage
practices and best execution. The Board received reports from FTAM's Chief
Investment Officer with respect to equity brokerage practices, fund performance,
and expense trends. The Board was assisted in its review by independent legal
counsel, who provided a memorandum detailing the legal standards for review of
the Advisory Agreements. The Board received a detailed presentation by FTAM,
which included a fund-by-fund analysis of performance and profitability.
Detailed presentations were also provided by each Sub-Adviser. The Board
deliberated outside the presence of management and the Advisers.
In their deliberations, each Trustee attributed different weights to various
factors involved in their analysis of whether the Advisory Agreements should be
continued, and no factor alone was considered determinative. The Trustees
determined that the overall arrangements between the Trust and FTAM, between
FTAM and MSIM, and between FTAM and Fort Washington, as provided in the Advisory
Agreements, were fair and reasonable, and that the continuance of the Advisory
Agreements, as well as the initial approval of the Advisory Agreement with
respect to the High Yield Bond Fund, were in the best interests of each Fund of
the Trust and its shareholders.
The matters addressed below were considered and discussed by the Trustees in
reaching their conclusions.
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY THE ADVISER
The Trustees received and considered information regarding the nature, extent,
and quality of the services provided to each Fund of the Trust under the
Advisory Agreements. The Trustees took into account information furnished
throughout the year at Board meetings, as well as materials furnished
specifically in connection with the annual review process. The Trustees
considered the background and experience of each Adviser's senior management and
the expertise of the investment personnel of each Adviser responsible for the
day-to-day management of each Fund of the Trust.
The Trustees received information concerning the investment philosophy and
investment processes applied by the Advisers in managing the Trust. The Trustees
also considered information regarding regulatory compliance and compliance with
the investment policies of the Trust. The Trustees evaluated the trading
practices of each Adviser. The Trustees also evaluated the procedures of the
Advisers designed to fulfill the Advisers' fiduciary duty to the Trust with
respect to possible conflicts of interest, including the Advisers' codes of
ethics (regulating the personal trading of its officers and employees).
With respect to the initial approval of Fort Washington, the Trustees first
considered the demand for a high yield product. The Trustees then reviewed
FTAM's sub-adviser selection process, which focused on performance, quality, and
duration. The Trustees then considered Fort Washington's disciplined high yield
investment strategy and philosophy with respect to risk/return alignment. The
Trustees also reviewed Fort Washington's portfolio and credit selection process,
as well as its sell strategy.
185
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
With respect to FTAM, the Trustees particularly noted recent staffing
enhancements to the investment teams initiated by the chief investment officer.
Based on their review, the Trustees concluded that, with respect to the quality
and nature of services to be provided by the Advisers, the scope of
responsibilities was typical of those of investment advisers and sub-advisers to
open-end mutual funds generally, and that the quality of the services was very
satisfactory.
INVESTMENT PERFORMANCE
The Trustees considered performance results of each Fund in absolute terms and
relative to each Fund's peer group. In conducting their review of performance,
both long- and short-term performance were considered. The Trustees noted that
performance varied considerably and they focused their review of performance on
those funds whose performance compared unfavorably with their respective peers
over the most recent one-year, three-year and five-year periods. The Trustees
noted that the performance of the Small Cap Growth Fund, the Quality Growth
Fund, the Balanced Fund, the Dividend Growth Fund (formerly, the Select Stock
Fund), the Bond Fund, the Short Term Bond Fund, the Municipal Bond Fund, the
Intermediate Municipal Bond Fund, the Michigan Municipal Bond Fund and the
Government Money Market Fund ranked in the fourth and fifth quintile for the
majority of the one-year, three-year and five-year periods. With respect to the
Small Cap Growth Fund and the Quality Growth Fund, the Trustees considered the
enhanced risk controls and volatility measures put in place and their potential
impact on performance. The Trustees considered the recent changes made to the
Select Stock Fund's investment focus. The Trustees also considered the
substantial redemptions in the Municipal Bond Fund and the stability of the
long-term performance of the Balanced Fund and the Intermediate Bond Fund. With
respect to the Dividend Growth Fund, the Bond Fund, the Short Term Bond Fund,
the Municipal Bond Fund, the Intermediate Bond Fund, the Government Bond Fund,
the Municipal Money Market Fund and the Government Money Market Fund, the
Trustees noted FTAM's proposed fee reductions through contractual expense
limitation agreements and the potential impact these expense reductions could
have on performance. With respect to the Intermediate Municipal Bond Fund, the
Trustees noted the contractual expense limitation agreements put in place last
year. The Trustees also considered the supply constraints FTAM faced with
respect to the Michigan Municipal Bond Fund.
With respect to the International Equity Fund, the Trustees noted that while the
Fund had underperformed its benchmark for the one-year period, it had
outperformed its benchmark for the three- and five-year periods.
With respect to the initial approval of Fort Washington, the Trustees considered
Fort Washington's impressive performance record in the high yield bond market.
Based on their review and consideration of FTAM's attempts to address
performance issues, the Trustees concluded that the performance of each of the
Funds of the Trust was satisfactory or better.
COST OF SERVICES AND PROFITS REALIZED BY FTAM AND ITS AFFILIATES
The Trustees considered comparable peer group information with respect to the
advisory fees charged by FTAM to each of the Funds of the Trust, taking into
consideration both contractual and actual (i.e., after waiver) fee levels. The
Trustees also reviewed administration, accounting, custody and transfer agency
fees received by FTAM's affiliate, Fifth Third Bank. The Trustees also
considered the fallout benefits to FTAM of soft dollars, based on presentations
to the Board. The Trustees reviewed profitability information provided by FTAM
with respect to investment advisory, administration, accounting, transfer agency
and custody services to each Fund of the Trust. The Trustees recognized that
such data is not typically audited and therefore represented FTAM's own
determination of its revenues, as well as the revenues of its affiliates, from
the contractual services provided to the Trust, less expenses of providing such
services. Expenses included direct and indirect costs and were calculated using
an allocation methodology developed by FTAM. The Trustees also received data
from Lipper on profitability margins for large investment advisers of mutual
funds. The Trustees recognized the difficulty in making comparisons of
profitability to other investment advisers, because comparative information is
affected by numerous factors, including the structure of the particular adviser,
the types of funds it manages, its business mix, and numerous assumptions
regarding allocations. The Trustees also considered the impact that the proposed
expense limitations would have on FTAM's profitability. Based on their review,
the Trustees concluded that the profitability to FTAM under the Advisory
Agreement was not unreasonable in light of the services and benefits provided to
each Fund of the Trust.
186
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
With respect to Sub-Adviser profitability, the Trustees noted that sub-advisory
fees are paid by FTAM, rather than directly from the Trust's assets. The Board
also concluded that the these fees were fair and reasonable, in light of the
services and benefits provided to each Fund.
ECONOMIES OF SCALE
The Trustees also considered whether fee levels reflected economies of scale and
whether economies of scale would be produced by the growth of the Trust's
assets. The Trustees took into account the $1 billion decrease in the Trust's
assets over the last year. The Trustees noted the expense limitations proposed
by FTAM for the Dividend Growth Fund, the Bond Fund, the Short Term Bond Fund,
the Municipal Bond Fund, the Intermediate Bond Fund, the Government Bond Fund,
the Municipal Money Market Fund and the Government Money Market Fund. The
Trustees also considered the expense limitations previously enacted for the
Balanced Fund and the Intermediate Municipal Bond Fund. The Trustees took into
account the impact of the expense limitations and the resulting decrease in
revenue for FTAM. The Trustees concluded that the asset levels of the Trust were
not currently so large as to warrant formal contractual breakpoints, and that
the contractual expense limitations were a reasonable way to provide the
benefits of economies of scale to shareholders at this time.
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192
ADDRESSES
- --------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Stock and Bond Mutual Funds 3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------
Investment Advisor Fifth Third Asset Management, Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------
Sub-Advisor (International Morgan Stanley Investment
Equity Fund only) Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------------------------------
Sub-Advisor (High Yield Bond Fort Washington Investment
Fund only) Advisors, Inc.
420 East Fourth Street
Cincinnati, Ohio 45202
- --------------------------------------------------------------------------------
Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------
Administrator, Accountant Fifth Third Bank
and Custodian 38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------
Transfer and Dividend Disbursing BISYS Fund Services Ohio, Inc.
Agent and Sub-Accountant 3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------
Independent Registered Public PricewaterhouseCoopers LLP
Accounting Firm 100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- --------------------------------------------------------------------------------
[LOGO] Fifth Third Funds
3/06
SAR-STBD-06
LOGO: FIFTH THIRD FUNDS
MONEY MARKET MUTUAL FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
- ----------------
January 31, 2006
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 OUR MESSAGE TO YOU
Economic Outlook and
Commentary Section ............. 1
Management Discussion of Fund
Performance .................... 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
Supplemental Information ....... 42
OUR MESSAGE TO YOU
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Patient stock investors were rewarded in the second half of 2005, just as they
were in the second half of 2004.
For the six-month period ended January 31, 2006, the major stock averages posted
the following returns:
o The S&P 500 Index1 of large cap stocks returned 4.68%.
o The S&P 400 Index1 of mid cap stocks returned 9.04%.
o The Russell 2000(R) Index1 of small cap stocks returned 8.50%.
o The MSCI EAFE Index1 of international stocks returned 18.31%.
The trends in performance--small and mid cap stocks outperforming large caps and
international equities outperforming domestic stocks--extend themes that have
been prevalent for much of the first six years of this decade. Such recurring
patterns continue to illustrate that investors benefit from diversification.
The solid stock market returns were driven by a confluence of several events,
including:
o Hints that the Federal Reserve (the "Fed") may be close to the end of
its rate-hike campaign.
o Continued above-average corporate profit growth.
o Stabilization in energy prices.
o The relatively low bond yield environment.
It was not an easy six-month period for stock investors, though. All of the
major indices endured losses from August through October as the U.S. reeled from
the effects of a disastrous hurricane season on the nation's energy industry and
the entire southeast region. It was not until the energy industry started to
recover and economic reports began to stabilize that stocks reversed their
losses and moved to new highs.
The resilience of the American economy following the devastating hurricanes has
truly been remarkable and highlights how the flexibility of free markets and
capitalism allows our system to absorb such exogenous shocks. It should also be
noted that during this six-month period, the S&P 400 Index and Russell 2000(R)
Index reached all-time highs, while the S&P 500 Index hit levels not seen since
before the September 11 attacks.
While the performance of U.S. stocks was remarkable, international equities
proved to be the star asset class of the period. Net purchases of stocks of
companies based outside the U.S. totaled $86 billion in 2005, according to AMG
Data, nearly equal the record of $88 billion in 2003. Investors continue to be
attracted to the diversification benefits and strong economic growth in areas
from Latin America to Asia.
Fixed income investors experienced a more challenging period. Returns for most
bond indices hovered around 1% as the Fed took its overnight Fed Funds Rate from
3.25% to 4.50%, energy costs spiked and questions emerged about the country's
economic growth prospects. All of these factors combined to push yields higher
across the yield curve and contributed to an inversion of the curve, which
occurs when long-term yields lag short-term rates.
On the bright side, the environment did improve for yield-oriented investors.
Money market yields are now approaching 4%, with corporate bond yields in the 5%
range.
As we move further into 2006, financial markets are likely to remain focused on:
o The Federal Reserve's actions.
o The value of the U.S. dollar.
o Inflationary developments.
o The price of oil.
Much like in 2005, the world economic community continues to grapple with strong
growth in Asia and the resulting upward pressure on global commodity prices. On
the domestic front, baby boomers are enjoying their peak earning, spending and
saving years, but as the first wave turns 60 in 2006, Congress continues to
struggle with how to deal with this aging generation.
One overriding concern is that the Fed will continue to raise short-term rates
despite an already inverted yield curve, which is a signal from the bond market
of concern about a sharply slower rate of future economic growth.
1
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
While there are always risks, we believe the average diversified and patient
fund investor should continue to do reasonably well as investment opportunities
ebb and flow on a global basis, shifting between stocks and bonds, large and
small companies, international and domestic concerns. Simply put, as long as
global capital is allowed to flow to its best use, solid investment
opportunities could exist.
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.
1Terms and Definitions
- --------------------------------------------------------------------------------
THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500") 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 INDEX ("S&P 400") 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 EUROPE AUSTRALASIA AND FAR EAST INDEX
("MSCI EAFE") is a market capitalization-weighted equity index comprising 20 of
the 48 countries in the MSCI universe and representing the developed world
outside of North America. Each MSCI country index is created separately, then
aggregated, without change, into regional MSCI indices. EAFE performance data is
calculated in U.S. dollars and in local currency.
The 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
During the six-month period ended January 31, 2006, the Fifth Third Money Market
Funds posted a gradual but persistent increase in yields 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
by a quarter point at each of its five scheduled meetings during the period,
moving its overnight lending rate from 3.25% to 4.50%. Further aiding the Funds
was a neutral duration strategy, relative to peers, which allowed the Funds to
capitalize on the higher interest rates.
Consistent with this strategy, the taxable Money Market Funds held traditional
money market securities, such as U.S.Treasury bills, government agency discount
notes and commercial paper. The Funds also selectively sought floating and fixed
coupon extension trades to capture additional yield.+
The approach was based on the belief that the FOMC would remain "measured" in
its upward adjustments to its key target rate throughout 2005. As this was the
case, the Funds benefited from the frequent reinvestment of cash equivalents and
the inherent hedge provided by the floating interest rate securities.
Furthermore, the additional liquidity allowed the Funds to readily cope with
volatile cash flows. By the period's end, the Funds' duration had been slightly
extended in anticipation of the eventual completion of the tightening cycle by
the FOMC.+
Within the Fifth Third Prime Money Market Fund and Fifth Third Institutional
Money Market Fund, a continued emphasis on high quality security selection
enhanced the conservative orientation required to achieve the principal
preservation objective.+
In municipal money markets, investors spent much of the period focused on the
short end of the spectrum, given the uncertainty surrounding the intentions of
the FOMC, the health of the economy and surging oil prices. As a result, the
shape of the short-term yield curve remained largely unchanged, although rates
generally inched upward.
Against this backdrop, the Fifth Third Michigan Municipal Money Market Fund1 and
the Fifth Third Municipal Money Market Fund were managed conservatively and
maintained a high quality orientation.When possible, the average maturity was in
line or slightly longer than the iMoneyNet peer group, which allowed each Fund
to capitalize on the climb in interest rates. At times, a shortage of Michigan
issues made the maturity goal difficult for the Michigan Municipal Money Market
Fund.+
As of January 31, 2006 approximately 80% of the Fifth Third Michigan Municipal
Money Market and Municipal Money Market Fund portfolio's were comprised of daily
and weekly floating rate securities, many of which are supported by letters of
credit and other forms of credit enhancements issued by banks, financial
institutions and corporations. The balance of the Funds' portfolios were
comprised of commercial paper, notes and bonds that have a final maturity within
397 days.The mix between floaters and other investments did not change
dramatically over the six-month period.+
MATURITY COMPOSITION AS OF JANUARY 31, 2006
- --------------------------------------------------------------------------------
WEIGHTED AVERAGE MATURITY+
- --------------------------------------------------------------------------------
- --------------------------------------------------------------
DAYS
DAYS AS OF
AS OF 7/31/05 1/31/06
- --------------------------------------------------------------
Fifth Third Prime 35 36
Money Market Fund
- --------------------------------------------------------------
Fifth Third Institutional 35 33
Money Market Fund
- --------------------------------------------------------------
Fifth Third Institutional 35 42
Government Money
Market Fund
- --------------------------------------------------------------
Fifth Third Government 34 42
Money Market Fund
- --------------------------------------------------------------
Fifth Third U. S.Treasury 22 26
Money Market Fund
- --------------------------------------------------------------
Fifth Third Michigan 31 27
Municipal
Money Market Fund
- --------------------------------------------------------------
Fifth Third Municipal 19 29
Money Market Fund
- --------------------------------------------------------------
+Portfolio composition is subject to change.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
AN INVESTMENT IN ANY OF THE FUNDS IS NOT INSURED OR GUARANTEED BY THE FDIC OR
ANY GOVERNMENT AGENCY. ALTHOUGH EACH MONEY MARKET FUND SEEKS TO PRESERVE THE
VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY
INVESTING IN A MONEY MARKET FUND.
(1)The Fifth Third Michigan Municipal Money Market Fund's income may be subject
to certain state and local taxes and, depending on one's tax status, the federal
alternative minimum tax. Single state funds may be subject to additional risk,
since issuers they invest in are more likely to be subject to the same political
and/or economic risks.
3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MONEY MARKET MATURITY SCHEDULES
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Institutional Michigan
Prime Institutional Government Government U.S. Treasury Municipal Municipal
Money Money Money Money Money Money Money
Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 8 Days 48.2% 48.3% 46.2% 32.8% 78.6% 84.7% 89.5%
- ------------------------------------------------------------------------------------------------------------------------------------
8 to 14 Days 2.6% 5.3% 6.3% 8.9% 0.0% 0.0% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
15 to 30 Days 23.8% 24.1% 18.5% 24.7% 2.5% 2.9% 1.1%
- ------------------------------------------------------------------------------------------------------------------------------------
31 to 180 Days 20.3% 18.5% 25.1% 28.7% 16.8% 8.0% 1.0%
- ------------------------------------------------------------------------------------------------------------------------------------
181 to 365 Days 5.1% 3.8% 3.9% 4.9% 2.1% 4.4% 7.9%
- ------------------------------------------------------------------------------------------------------------------------------------
366 to 397 Days 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
+Portfolio composition is subject to change.
4
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (8.5%)
Bank of Nova Scotia, 4.50%, 9/29/06 * $ 10,000 $ 9,999
Credit Suisse First Boston, 4.49%, 4/4/06 10,000 10,000
Credit Suisse First Boston, 4.81%, 12/5/06 6,000 5,999
Credit Suisse First Boston, 4.52%,
3/21/06 * 6,500 6,500
Deutsche Bank, 4.63%, 7/5/06 10,000 10,000
Dexia Credit, 4.34%, 11/6/06 * 20,000 19,999
Royal Bank of Scotland PLC, 4.32%,
7/5/06 * 15,500 15,493
Societe Generale, 4.04%, 7/27/06 6,350 6,329
SunTrust Bank, 4.29%, 4/13/06 10,000 9,998
Toronto Dominion Holdings, Inc.,
3.86%, 4/7/06 7,200 7,190
Wells Fargo & Co., 4.50%, 2/27/06 10,000 9,999
-----------
TOTAL CERTIFICATES OF DEPOSIT 111,506
-----------
COMMERCIAL PAPER (20.1%)
AIG Funding, Inc., 4.53%, 3/13/06 ** 10,000 9,950
Barclays Capital, 4.41%, 2/10/06 ** 9,100 9,090
Barclays Capital, 4.33%, 2/23/06 ** 15,000 14,961
Barclays Capital, 4.48%, 2/28/06 ** 6,100 6,080
Barclays Capital, 4.42%, 3/6/06 ** 10,000 9,960
Bear Stearns, 4.23%, 2/2/06 ** 10,000 9,999
BNP Paribas, 4.46%, 3/28/06 ** 15,000 14,899
Citigroup, Inc., 4.37%, 2/15/06 ** 10,000 9,983
Depfa Bank PLC, 4.01%, 3/6/06 ** 8,997 8,965
Deutsche Bank, 4.48%, 2/1/06 ** 25,000 24,999
Deutsche Bank, 4.36%, 2/9/06 ** 15,000 14,985
General Electric Capital Corp., 4.39%,
2/22/06 ** 15,000 14,962
Goldman Sachs Group, Inc., 4.52%,
2/24/06 ** 10,000 9,971
Northern Trust Corp., 4.30%, 2/14/06 ** 10,000 9,985
Northern Trust Corp., 4.45%, 3/28/06 ** 15,000 14,899
Northern Trust Corp., 4.49%, 4/10/06 ** 15,000 14,874
PNC Bank, 4.48%, 2/23/06 ** 10,000 9,973
Societe Generale, 4.18%, 2/6/06 ** 5,500 5,497
Societe Generale, 4.41%, 3/6/06 ** 15,000 14,940
Societe Generale, 4.44%, 3/20/06 ** 10,000 9,943
Toronto Dominion Holdings, Inc.,
4.41%, 2/21/06 ** 10,000 9,976
UBS Finance, Inc., 4.53%, 2/22/06 ** 15,000 14,961
-----------
TOTAL COMMERCIAL PAPER 263,852
-----------
CORPORATE BONDS (29.1%)
American Express Credit Corp., 4.64%,
5/16/06 * 10,000 10,006
American Express Credit Corp., 5.50%,
9/12/06 8,823 8,877
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
CORPORATE BONDS, CONTINUED
Bank of America Corp., 6.95%,
3/20/06 $ 5,000 $ 5,020
Bank One Corp., 6.50%, 2/1/06 10,000 10,000
Barclays Bank PLC, 4.38%, 6/13/06 * 10,000 9,999
Bayerische Landesbank, 2.50%,
4/28/06 5,375 5,350
Bear Stearns & Co., Inc., 3.00%,
3/30/06 16,350 16,325
Bear Stearns & Co., Inc., 4.45%,
12/5/06 * 20,000 20,000
BP Capital PLC, 2.35%, 6/15/06 5,000 4,969
Citigroup, Inc., 5.75%, 5/10/06 14,250 14,319
Citigroup, Inc., 4.50%, 5/19/06 * 7,500 7,503
Credit Suisse First Boston, 5.88%,
8/1/06 25,724 25,900
General Electric Capital Corp., 4.46%,
2/3/06 * 20,000 20,000
Goldman Sachs Group, Inc., 4.57%,
2/21/06 * 10,000 10,001
Goldman Sachs Group, Inc., 4.78%,
4/20/06 * 14,000 14,006
Goldman Sachs Group, Inc., 4.43%,
8/1/06 * 20,000 20,007
Household Finance Corp., 3.38%,
2/21/06 6,035 6,034
HSBC Finance Corp., 7.25%, 5/15/06 4,045 4,075
HSBC Finance Corp., 4.43%, 2/6/07 * 10,000 10,000
JP Morgan Chase & Co., 3.13%,
12/11/06 6,500 6,412
Lehman Brothers Holdings, 6.25%,
5/15/06 17,137 17,236
Merrill Lynch & Co., 4.45%, 5/5/06 * 8,000 8,002
Merrill Lynch & Co., 6.13%, 5/16/06 6,690 6,726
Merrill Lynch & Co., 4.70%, 9/18/06 * 7,400 7,411
Merrill Lynch & Co., 4.64%, 1/11/07 * 15,000 15,000
Morgan Stanley, 4.42%, 2/2/07 * 15,000 15,000
National City Bank, 4.53%, 7/26/06 * 9,250 9,252
National City Bank, 4.47%, 8/14/06 * 15,000 15,004
SunTrust Bank, 2.50%, 5/4/06 4,675 4,657
U.S. Bank, 2.85%, 11/15/06 5,000 4,926
U.S. Bank, 4.49%, 9/29/06 * 3,250 3,249
Wachovia Corp., 4.95%, 11/1/06 12,000 12,014
Wells Fargo & Co., 4.54%, 3/3/06 * 7,100 7,101
Wells Fargo & Co., 4.46%, 1/12/07 * 25,000 25,001
Wells Fargo & Co., 6.88%, 8/8/06 3,000 3,032
-----------
TOTAL CORPORATE BONDS 382,414
-----------
DEMAND NOTES (17.8%)
Arbor Hospice, Inc., 4.55%, 10/1/26,
(LOC: Comerica Bank) * (c) 4,900 4,900
Atlas Industries, Inc., 4.55%, 6/1/10,
(LOC: National City Bank) * 4,335 4,335
Continued
5
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
DEMAND NOTES, CONTINUED
Beavercreek Enterprises, 4.55%, 3/2/20,
(LOC: National City Bank) * $ 4,175 $ 4,175
Buckeye Corrugated, Inc., 4.55%,
10/1/17, (LOC: Key Bank) * (c) 5,860 5,860
Capital One Funding Corp., 4.53%,
10/1/14, (LOC: Bank One) * 2,251 2,251
Capital One Funding Corp., 4.53%,
7/2/18, (LOC: Bank One) * (c) 812 812
Capital One Funding Corp., 4.53%,
10/1/21, (LOC: Bank One) * (c) 1,100 1,100
Capital One Funding Corp., 4.53%,
1/4/27, (LOC: Bank One) * 6,529 6,529
Central Michigan Inns, 4.54%, 4/1/30,
(LOC: Michigan National Bank) * 2,010 2,010
CHF-ELON LLC, 4.49%, 6/1/35,
(LOC: Regions) * 6,500 6,500
Clare at Water Tower, 4.50%, 5/15/38,
(LOC: Lasalle Bank) * 12,500 12,500
Cornerstone Funding Corp., 4.58%,
12/1/11, (LOC: SunTrust) * 8,225 8,225
Cornerstone Funding Corp., 4.58%,
9/1/25, (LOC: SunTrust) * 5,750 5,750
GTB Properties LLC, 4.73%, 7/1/23,
(LOC: National Australia Bank) * 4,265 4,265
Harry W. Albright, Jr., 4.64%, 5/1/21,
(LOC: National Australia Bank) * 5,485 5,485
Heart Center Medical Group, 4.55%,
10/1/30, (LOC: National City Bank) * 10,035 10,035
HWP Co., Ltd. Project, 4.55%,
12/3/18, (LOC: National City Bank) * (c) 4,450 4,450
Iowa 80 Group Inc., 4.51%, 6/1/16,
(LOC: Wells Fargo) * 4,200 4,200
Jackson 2000, 4.55%, 6/1/49, (LOC:
KeyBank) * 9,115 9,115
Jefferson Land Development, 4.60%,
10/1/16, (LOC: National City Bank) * (c) 1,040 1,040
Landmark Medical LLC, 4.60%, 1/1/21,
(LOC: Bank One) * 7,980 7,980
Lexington Financial Services, 4.58%,
2/1/26, (LOC: LaSalle Bank) * 8,800 8,800
Mount Carmel East Professional, 4.55%,
1/1/14, (LOC: National City) * (c) 1,660 1,660
Mr. K Enterprises, 4.73%, 9/1/16,
(LOC: National Australia Bank) * 6,150 6,150
New Belgium Brewery Co., 4.67%,
7/1/15, (LOC: KeyBank) * 3,470 3,470
Northside Christian Church, 4.60%,
4/1/30, (LOC: Bank One) * 6,830 6,830
Park State Properties LLC, 4.49%,
11/1/34, (LOC: US Bank) * 16,500 16,500
PCI Paper Conversions, Inc., 4.55%,
4/1/10, (LOC: KeyBank) * 2,080 2,080
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
DEMAND NOTES, CONTINUED
Pittsburgh Technical Institute, 4.55%,
10/1/15, (LOC: National City Bank) * $ 10,505 $ 10,505
PRD Finance LLC, 4.50%, 4/1/27,
(LOC: National City Bank) * 7,750 7,750
Precision Tool and Die, 4.55%, 3/1/10,
(LOC: National City Bank) * 3,983 3,983
Revenue Bond CTF Series Trust,
5.04%, 6/1/24, (LOC: AIG) * (c) 3,835 3,835
Revenue Bond CTF Series Trust
Castlegate 3, 5.04%, 6/1/17, (LOC: AIG) * 2,540 2,540
Royal Town Center LLC Project,
4.55%, 10/1/47, (LOC: Comerica Bank) * 5,095 5,095
Saint Andrew United, 4.50%, 7/1/29,
(LOC: Wachovia Bank) * 14,085 14,085
SDK Cameron LLC, 4.55%, 10/1/35,
(LOC: Comerica Bank) * (c) 3,275 3,275
Second & Main, Ltd., 4.55%, 8/1/11,
(LOC: National City Bank) * 2,950 2,950
Secor Realty, Inc., 4.55%, 4/1/20,
(LOC: National City Bank) * 8,615 8,615
SGS Tool Co., 4.55%, 12/1/12, (LOC:
Bank One) * 5,325 5,325
Sharonville Realty Enterprises, 4.60%,
4/1/20, (LOC: Bank One) * (c) 7,900 7,900
Zeigler Realty LLC, 4.64%, 9/1/26,
(LOC: National City Bank) * 1,920 1,920
-----------
TOTAL DEMAND NOTES 234,785
-----------
MUNICIPAL BONDS (14.5%)
ALASKA (0.3%)
Four Dam Pool Electric Revenue,
4.52%, 7/1/26 * 3,770 3,770
-----------
ARIZONA (0.9%)
Tempe Industrial Development
Authority Revenue, 4.47%, 7/1/34 * 11,690 11,690
-----------
CALIFORNIA (3.1%)
Riverside County, 4.46%, 11/1/20 * 7,000 7,000
Sacramento County, 4.46%, 7/1/22 * 32,430 32,430
-----------
39,430
-----------
COLORADO (0.1%)
Pueblo Housing Authority Purchasing
Revenue, 4.67%, 12/1/18 * (c) 1,820 1,820
-----------
GEORGIA (0.8%)
Columbus Development Authority,
Industrial Revenue, Litho-Krome Project,
4.57%, 8/1/22 * 10,125 10,125
-----------
ILLINOIS (1.0%)
Chicago, Series B, 4.53%, 1/1/19 * 13,530 13,530
-----------
Continued
6
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
IOWA (0.5%)
Dallas County Industrial Development
Revenue, Sioux City Brick & Tile,
4.60%, 9/1/21 * $ 6,980 $ 6,980
-----------
KENTUCKY (1.2%)
Bardstown Industrial Revenue, 4.64%,
6/1/24 * 7,950 7,950
Webster County Industrial Revenue,
Green River Project, 4.49%, 11/1/24 * 7,700 7,700
-----------
15,650
-----------
MICHIGAN (1.5%)
Commerce Charter Township,
Downtown Development,
4.52%, 10/1/34 * 20,000 20,000
-----------
MINNESOTA (0.7%)
Minneapolis Taxable Pension, 4.52%,
12/1/13 * 9,830 9,830
-----------
MISSISSIPPI (0.2%)
Business Finance Corp., Industrial
Development Revenue, Koch Freezers
LLC, 4.60%, 3/1/17 * 2,900 2,900
-----------
NEW YORK (0.6%)
Housing Development Corp., Multi
Family Rental Housing Revenue, 4.46%,
6/1/33 * 7,700 7,700
-----------
NORTH CAROLINA (1.7%)
Capital Facilities Financial Agency
Revenue, Wolfpack Powers, 4.47%,
9/1/18 * 5,300 5,300
Roman Catholic Diocese, Series A,
4.59%, 6/1/18 * 17,050 17,050
-----------
22,350
-----------
OHIO (0.3%)
Cleveland-Cuyahoga County, Port
Authority Revenue, CBT Project, 4.55%,
6/1/31 * 4,500 4,500
-----------
PENNSYLVANIA (0.2%)
Allegheny County, Industrial
Development Authority Revenue, 4.55%,
5/1/15 * 2,700 2,700
-----------
TENNESSEE (0.6%)
Jackson Energy Authority, 4.47%,
10/1/25 * 8,450 8,450
-----------
UTAH (0.2%)
Housing Corp., Multi Family Revenue,
5.04%, 1/1/22 * 2,061 2,061
-----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
WASHINGTON (0.6%)
Housing Finance Community,
Multifamily Revenue, Monticello Park
Project, 4.53%, 8/1/26 * $ 3,910 $ 3,910
State Housing Finance Community,
Multi Family Revenue, Eaglepointe
Apartments-B, 5.04%, 7/1/28 * 1,610 1,610
State Housing Finance Community,
Multi Family Revenue,Winterhill
Apartments- B, 5.04%, 7/1/28 * 2,175 2,175
-----------
7,695
-----------
TOTAL MUNICIPAL BONDS 191,181
-----------
REPURCHASE AGREEMENTS (9.6%)
State Street, 4.35%, 2/1/06, (Proceeds at
maturity, $1,366, Collateralized by a
U.S. Government Agency security,
4.25%, 7/15/09, value $1,415) 1,366 1,366
UBS Investment Bank, 4.45%, 2/1/06,
(Proceeds at maturity, $125,015,
Collateralized by various U.S.
Government Agency securities,
0.00%-7.63%, 2/15/06-10/15/19,
value $127,504) 125,000 125,000
-----------
TOTAL REPURCHASE AGREEMENTS 126,366
-----------
MONEY MARKETS (0.3%)
AIM Funds Liquid Assets Portfolio 1,391,102 1,391
Goldman Sachs Financial Square Prime
Obligations Fund 2,932,336 2,932
-----------
TOTAL MONEY MARKETS 4,323
-----------
TOTAL INVESTMENTS (COST $1,314,427) (a) - 99.9% 1,314,427
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 943
-----------
NET ASSETS - 100.0% $ 1,315,370
===========
See notes to schedules of portfolio investments
and notes to financial statements.
7
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (7.4%)
Bank of Nova Scotia, 4.50%, 9/29/06 * $ 20,000 $ 19,998
Barclays Bank PLC, 4.33%, 6/1/06 * 10,000 10,000
BNP Paribas, 4.00%, 7/20/06 4,700 4,684
Credit Suisse First Boston, 4.49%, 4/4/06 * 15,000 15,000
Deutsche Bank, 4.63%, 7/5/06 * 10,000 10,000
Dexia Credit, 4.34%, 11/6/06 * 15,000 14,999
SunTrust Bank, 4.29%, 4/13/06 10,000 9,998
Toronto Dominion Bank, 3.82%,
7/3/06 15,000 14,945
Wells Fargo & Co., 4.01%, 7/24/06 4,500 4,484
-----------
TOTAL CERTIFICATES OF DEPOSIT 104,108
-----------
COMMERCIAL PAPER (32.1%)
Abbey National, 4.38%, 2/13/06 ** 25,000 24,964
AIG Funding, Inc., 4.53%, 3/13/06 ** 10,000 9,950
American Express, 4.37%, 2/17/06 ** 15,000 14,971
Barclays Capital, 4.33%, 2/23/06 ** 5,000 4,987
Barclays Capital, 4.43%, 2/27/06 ** 4,600 4,585
Barclays Capital, 4.43%, 2/28/06 ** 4,600 4,585
Barclays Capital, 4.42%, 3/6/06 ** 10,000 9,960
Bear Stearns, 4.23%, 2/2/06 ** 10,000 9,999
BNP Paribas, 4.50%, 2/15/06 ** 30,000 29,947
Citigroup Inc., 4.37%, 2/17/06 ** 15,000 14,971
Depfa Bank PLC, 4.24%, 2/6/06 ** 15,000 14,991
Depfa Bank PLC, 4.01%, 3/6/06 ** 7,000 6,975
Deutsche Bank, 4.36%, 2/9/06 ** 5,000 4,995
Dexia Delaware LLC, 4.31%, 2/3/06 ** 10,000 9,998
Dexia Delaware LLC, 4.47%, 4/5/06 ** 15,000 14,884
Dupont, 4.44%, 2/1/06 ** 24,831 24,831
General Electric Capital Corp., 4.38%,
3/1/06 ** 30,000 29,899
General Electric Capital Corp., 4.45%,
3/15/06 ** 6,200 6,168
Goldman Sachs Group, Inc., 4.52%,
2/24/06 ** 10,000 9,971
Northern Trust Corp., 4.33%, 2/9/06 ** 14,930 14,916
Northern Trust Corp., 4.30%, 2/14/06 ** 10,000 9,985
Northern Trust Corp., 4.37%, 2/21/06 ** 10,000 9,976
Northern Trust Corp., 4.45%, 3/28/06 ** 15,000 14,899
PNC Bank, 4.48%, 2/23/06 ** 5,000 4,986
Purdue Research, 4.45%, 3/1/06 6,150 6,150
Rabobank Capital Funding Trust,
4.46%, 2/1/06 ** 25,000 25,000
Societe Generale, 4.23%, 2/1/06 ** 24,525 24,525
Societe Generale, 4.30%, 2/3/06 ** 4,100 4,099
Societe Generale, 4.54%, 3/6/06 ** 5,300 5,278
Societe Generale, 4.44%, 3/20/06 ** 18,500 18,393
UBS, 4.36%, 2/10/06 ** 20,000 19,978
UBS, 4.43%, 2/28/06 ** 1,785 1,779
UBS, 4.50%, 3/21/06 ** 3,480 3,459
UBS Finance, Inc., 4.48%, 2/22/06 ** 20,800 20,747
University of Michigan, 4.38%, 2/6/06 5,660 5,660
University of Texas, 4.38%, 2/7/06 9,932 9,932
-----------
TOTAL COMMERCIAL PAPER 451,393
-----------
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
CORPORATE BONDS (24.7%)
Abbott Laboratories, 6.40%, 12/1/06 $ 1,000 $ 1,012
American Express Credit Corp., 4.64%,
5/16/06 * 7,000 7,004
American Express Credit Corp., 5.50%,
9/12/06 7,000 7,043
Bank of America Corp., 7.13%,
9/15/06 8,503 8,635
Bank of New York, 2.20%, 5/12/06 7,850 7,801
Bank One Corp., 6.50%, 2/1/06 18,250 18,250
Barclays Bank PLC, 4.38%, 6/13/06 * 15,000 14,999
Bear Stearns & Co., Inc., 3.00%,
3/30/06 10,000 9,985
Bear Stearns & Co., Inc., 6.50%,
5/1/06 5,500 5,525
Bear Stearns & Co., Inc., 4.45%,
12/5/06 * 15,000 15,000
BP Capital PLC, 2.35%, 6/15/06 6,000 5,960
Citigroup, Inc., 5.75%, 5/10/06 7,500 7,537
Credit Suisse First Boston, 5.88%,
8/1/06 12,000 12,082
Deutsche Bank AG, 4.52%, 3/2/06 * 20,495 20,496
General Electric Capital Corp., 4.46%,
2/3/06 * 15,000 15,000
General Electric Capital Corp., 5.35%,
3/30/06 3,937 3,944
Goldman Sachs Group, Inc., 4.57%,
2/21/06 * 5,000 5,001
Goldman Sachs Group, Inc., 4.78%,
4/20/06 * 16,635 16,642
Goldman Sachs Group, Inc., 4.43%,
8/1/06 * 20,000 20,004
Household Finance Corp., 3.38%,
2/21/06 5,000 4,999
HSBC Finance Corp., 4.43%, 2/6/07 * 15,000 15,000
Lehman Brothers Holdings, 6.25%,
5/15/06 11,900 11,964
Lehman Brothers Holdings, 7.50%,
9/1/06 3,615 3,676
Merrill Lynch & Co., 4.45%, 5/5/06 * 8,000 8,002
Merrill Lynch & Co., 6.13%, 5/16/06 5,000 5,029
Merrill Lynch & Co., 4.77%, 5/22/06 * 10,950 10,965
Merrill Lynch & Co., 4.70%, 9/18/06 * 7,400 7,411
Merrill Lynch & Co., 4.18%, 1/26/07 5,000 4,968
National City Bank, 2.50%, 4/17/06 10,000 9,976
U.S. Bancorp, 2.75%, 3/30/06 3,870 3,864
U.S. Bank, 2.85%, 11/15/06 4,465 4,399
Wachovia Corp., 4.34%, 12/4/06 * 5,000 5,000
Wachovia Corp., 4.95%, 11/1/06 11,067 11,081
Wells Fargo & Co., 4.38%, 2/27/06 25,000 25,000
Wells Fargo & Co., 4.58%, 9/15/06 * 4,000 4,003
Wells Fargo & Co., 4.46%, 1/12/07 * 10,000 10,000
-----------
TOTAL CORPORATE BONDS 347,257
-----------
Continued
8
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
DEMAND NOTES (4.9%)
Capital One Funding, 4.53%, 8/2/21,
(LOC: Bank One) * $ 4,557 $ 4,557
Capital One Funding, 4.53%, 4/1/26,
(LOC: Bank One) * 7,871 7,871
CHF-ELON LLC, 4.49%, 6/1/35,
(LOC: Regions Financial Corp.) * 7,000 7,000
Cornerstone Funding Corp., 4.58%,
11/15/06, (LOC: SunTrust) * 4,451 4,451
Cornerstone Funding Corp., 4.58%,
4/1/21, (LOC: SunTrust) * 6,700 6,700
Cornerstone Funding Corp., 4.58%,
1/1/34, (LOC: SunTrust) * 4,176 4,176
Flatrock River Lodge LP, 4.64%,
7/1/16, (LOC: FHLB) * 1,520 1,520
Gulf Gate Apartments, 4.57%, 9/1/28,
(LOC: Wells Fargo) * 2,000 2,000
Lodge of the Wabash, 4.64%, 7/1/16,
(LOC: FHLB) * 1,730 1,730
Metaltec Steel Abrasive, 4.61%,
11/1/34, (LOC: Comerica Bank) * 4,505 4,505
Northport Baptist Church, 4.59%,
9/1/24, (LOC: Regions Financial Corp.) * 3,100 3,100
Park State Properties LLC, 4.49%,
11/1/34, (LOC: US Bank) * 5,500 5,500
Praise Tabernacle Outreach, 4.59%,
6/1/24, (LOC: Comerica Bank) * 3,790 3,790
Presentation School, Inc., 4.50%,
7/1/30, (LOC: FHLB) * 5,700 5,700
Vancouver Clinic Building, 4.51%,
2/1/24, (LOC: US Bank) * 4,550 4,550
White River Lodge LP, 4.64%, 7/1/16,
(LOC: FHLB) * 1,625 1,625
-----------
TOTAL DEMAND NOTES 68,775
-----------
MUNICIPAL BONDS (17.4%)
ARKANSAS (1.3%)
Northwest Regional Airport Authority,
Airport Revenue, Series A, 4.54%, 2/1/21 * 15,725 15,725
Northwest Regional Airport Authority,
Airport Revenue, Series B, 4.54%, 2/1/08 * 1,850 1,850
-----------
17,575
-----------
CALIFORNIA (2.6%)
Kern Water Authority Revenue, Series B,
4.57%, 7/1/28 * 4,800 4,800
Sacramento County, 4.46%, 7/1/22 * 5,000 5,000
Sacramento County Housing Authority,
Multifamily Revenue, Natomas Park
Apartments, Series B, 4.54%, 7/15/35 * 2,050 2,050
Saint Michael's Episcopal Day School,
4.56%, 7/1/28 * 2,290 2,290
San Jose Financing Authority Lease
Revenue, Hayes Mansion, Phase B,
4.46%, 7/1/24 * 8,000 8,000
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
CALIFORNIA, CONTINUED
Statewide Community Development
Authority, Multifamily Revenue, Dublin,
4.56%, 12/15/37 * $ 5,010 $ 5,010
Statewide Community Development
Authority, Multifamily Revenue, Fairway
Properties, 4.56%, 12/15/37 * 5,550 5,550
Statewide Community Development
Authority, Multifamily Revenue, Palms
Apartments, 4.52%, 5/15/35 * 2,945 2,945
Statewide Community Development
Authority, Multifamily Revenue,
Series X-T, 4.54%, 10/15/32 * 1,400 1,400
-----------
37,045
-----------
GEORGIA (1.9%)
Athens-Clarke County Industrial
Development Authority Revenue,
Leucadia Inc., Project, 4.51%, 7/1/07 * 3,550 3,550
Atlanta Urban Residential Finance
Authority, 4.64%, 1/1/23 * 700 700
Augusta Housing Authority Multifamily
Revenue, 4.59%, 5/15/33 * 500 500
Gwinnett County Development
Authority, Hopewell Christian Academy,
4.47%, 12/1/21 * 6,100 6,100
Municipal Gas Authority Revenue,
4.57%, 2/1/15 * 15,175 15,175
-----------
26,025
-----------
ILLINOIS (1.1%)
Evanston, Maple Street Parking Facility,
4.54%, 12/1/21 * 1,600 1,600
Financial Authority Revenue, Fairview
Obligation, Series D, 4.50%, 8/15/34 * 1,150 1,150
Financial Authority Revenue, Fariview
Obligation, Series C, 4.50%, 8/15/34 * 12,350 12,350
-----------
15,100
-----------
INDIANA (2.1%)
Health Facilities Financing Authority
Revenue, 4.53%, 4/1/24 * 4,995 4,995
Health Facilities Financing Authority,
Hospital Revenue, Community
Foundation of Northwest Indiana,
Series B, 4.50%, 8/1/25 * 23,875 23,875
Indianapolis Economic Development
Multifamily Housing Revenue, Series B,
4.60%, 11/1/36 * 985 985
-----------
29,855
-----------
IOWA (0.4%)
Finance Authority Retirement
Community Revenue, 4.50%, 12/1/20 * 5,315 5,315
-----------
KENTUCKY (0.4%)
Boone County Industrial Revenue,,
4.61%, 6/1/23 * 5,395 5,395
-----------
Continued
9
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN (3.3%)
Canton Charter Township, General
Obligation, 4.63%, 3/1/11 * $ 1,500 $ 1,500
Commerce Charter Township,
Downtown Development,
4.52%, 10/1/18 * 13,000 13,000
Commerce Charter Township,
Downtown Development,
4.52%, 10/1/34 * 15,000 15,000
Kent County, 4.54%, 3/1/08 * 12,000 12,000
Ypsilanti Charter Township, Taxable
Capital Improvements, Series B, 4.63%,
4/1/19 * 3,340 3,340
-----------
44,840
-----------
MINNESOTA (0.3%)
Plymouth Revenue, Carlson Center
Project, 4.51%, 4/1/12 * 1,200 1,200
St. Paul Port Authority District, 4.65%,
3/1/22 * 3,655 3,655
-----------
4,855
-----------
MISSOURI (0.6%)
Kansas City Industrial Development
Authority, Taxable Downtown Arena,
4.57%, 4/1/40 * 8,930 8,930
-----------
NEBRASKA (0.8%)
Omaha Special Obligation, Riverfront
Redevelopment, 4.63%, 2/1/26 * 11,765 11,765
-----------
NEW MEXICO (0.1%)
Albuquerque Industrial Revenue,
KTECH Corp. Project, 4.57%, 11/1/22 * 1,800 1,800
-----------
NORTH CAROLINA (0.6%)
Roman Catholic Diocese, Series A,
4.59%, 6/1/18 * 9,115 9,115
-----------
OHIO (0.6%)
Cuyahoga County Ohio Health Care
Revenue, 4.59%, 5/15/12 * 3,675 3,675
Richland County, Healthcare Facilities
Revenue, Wesleyan, Series B, 4.49%,
11/1/27 * 4,900 4,900
-----------
8,575
-----------
PENNSYLVANIA (0.3%)
Berks County Industrial Development
Authority Revenue, 4.69%, 7/1/16 * 1,600 1,600
Berks County Municipal Authority,
4.54%, 5/15/22 * 2,940 2,940
-----------
4,540
-----------
TEXAS (0.1%)
Alamo Heights Higher Education
Facilities Corp., 4.64%, 4/1/07 * 1,630 1,630
-----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
UTAH (0.2%)
Tooele City Industrial Development
Revenue, Series A, 4.51%, 10/1/22 * $ 2,800 $ 2,800
-----------
VIRGINIA (0.4%)
Arlington County Industrial
Development Authority, 4.54%, 2/1/16 * 5,100 5,100
-----------
WASHINGTON (0.3%)
Housing Finance Community
Multifamily Housing Revenue, Everett,
Series B, 4.53%, 1/15/38 * 2,000 2,000
Housing Finance Community
Multifamily Revenue, Granite Falls,
Series B, 4.54%, 10/1/27 * 1,190 1,190
Housing Finance Community
Multifamily Revenue, Summer Ridge,
Series B, 4.65%, 12/1/29 * 780 780
-----------
3,970
-----------
TOTAL MUNICIPAL BONDS 244,230
-----------
U.S. GOVERNMENT AGENCIES (0.6%)
FREDDIE MAC (0.6%)
4.54%, 1/15/42 * 7,842 7,842
-----------
TOTAL U.S. GOVERNMENT AGENCIES 7,842
-----------
REPURCHASE AGREEMENTS (12.6%)
State Street, 4.35%, 2/1/06, (Proceeds at
maturity, $2,049, Collateralized by a
U.S. Government Agency security,
4.25%, 7/15/09, value $2,125) 2,049 2,049
UBS Investment Bank, 4.45%, 2/1/06,
(Proceeds at maturity, $175,022,
Collateralized by various U.S.
Government Agency securities,
0.00%-6.73%, 2/9/06 - 7/7/25,
value $178,503) 175,000 175,000
-----------
TOTAL REPURCHASE AGREEMENTS 177,049
-----------
MONEY MARKETS (0.2%)
AIM Funds Liquid Assets Portfolio 1,481,393 1,481
Goldman Sachs Financial Square Prime
Obligations Fund 1,616,183 1,616
-----------
TOTAL MONEY MARKETS 3,097
-----------
TOTAL INVESTMENTS (COST $1,403,751) (a) - 99.9% 1,403,751
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 801
-----------
NET ASSETS - 100.0% $ 1,404,552
===========
See notes to schedules of portfolio investments
and notes to financial statements.
10
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (70.3%)
FANNIE MAE (19.9%)
4.13%, 2/1/06 ** $ 10,000 $ 10,000
5.88%, 2/2/06 2,000 2,000
3.15%, 2/6/06 12,850 12,848
4.41%, 2/10/06 ** 8,435 8,426
5.50%, 2/15/06 11,374 11,380
4.25%, 2/22/06 ** 10,000 9,976
2.25%, 2/28/06 9,655 9,643
4.42%, 3/8/06 ** 6,980 6,950
3.02%, 6/1/06 5,000 4,976
3.01%, 6/2/06 5,000 4,975
5.25%, 6/15/06 13,015 13,067
3.25%, 6/28/06 3,475 3,459
3.25%, 7/12/06 8,867 8,821
4.00%, 10/16/06 500 497
-----------
107,018
-----------
FEDERAL FARM CREDIT BANK (6.6%)
6.60%, 7/7/06 3,800 3,832
2.13%, 7/17/06 5,000 4,947
4.28%, 8/1/06 * 15,000 14,999
3.20%, 10/12/06 2,000 1,980
4.39%, 12/22/06 * 10,000 9,999
-----------
35,757
-----------
FEDERAL HOME LOAN BANK (27.4%)
3.19%, 2/7/06 5,000 5,000
4.28%, 2/10/06 ** 6,250 6,243
2.00%, 2/13/06 4,000 3,998
5.38%, 2/15/06 3,800 3,802
2.00%, 2/27/06 4,500 4,492
5.13%, 3/6/06 6,265 6,273
2.38%, 4/5/06 5,000 4,986
2.50%, 4/11/06 4,000 3,985
1.85%, 4/20/06 4,000 3,978
2.32%, 4/28/06 1,250 1,246
4.20%, 5/10/06 * 20,000 19,998
2.75%, 5/15/06 3,500 3,482
4.25%, 5/15/06 5,000 4,995
4.45%, 6/14/06 * 25,000 24,999
2.26%, 6/16/06 5,000 4,955
3.25%, 7/21/06 2,350 2,341
3.50%, 8/15/06 6,375 6,344
5.25%, 8/15/06 2,000 2,006
4.40%, 8/21/06 * 30,000 30,001
2.75%, 11/15/06 4,000 3,937
-----------
147,061
-----------
FREDDIE MAC (16.4%)
2.15%, 2/10/06 15,000 14,992
4.29%, 2/21/06 ** 5,000 4,988
4.35%, 3/7/06 ** 10,000 9,959
4.40%, 3/14/06 ** 2,900 2,886
4.45%, 3/21/06 ** 4,461 4,435
4.50%, 5/16/06 ** 4,200 4,146
2.00%, 5/30/06 2,500 2,481
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC, CONTINUED
6.75%, 5/30/06 $ 3,665 $ 3,691
2.50%, 11/28/06 2,250 2,210
2.88%, 12/15/06 4,000 3,938
4.54%, 1/15/42 * 24,508 24,508
4.54%, 10/15/45 * 9,978 9,978
-----------
88,212
-----------
TOTAL U.S. GOVERNMENT AGENCIES 378,048
-----------
REPURCHASE AGREEMENTS (29.5%)
State Street, 4.35%, 2/1/06, (Proceeds at
maturity, $28,440, Collateralized by a
U.S. Government Agency security,
4.25%, 3/23/07, $28,720) 28,437 28,437
UBS Investment Bank, 4.45%, 2/1/06,
(Proceeds at maturity, $130,016,
Collateralized by various U.S.
Government Agency securities,
0.00%-7.06%, 2/6/06 - 5/18/20,
value $132,602) 130,000 130,000
-----------
TOTAL REPURCHASE AGREEMENTS 158,437
-----------
MONEY MARKETS (0.2%)
AIM Treasury Money Market Fund 1,080,978 1,081
Goldman Sachs Financial Square
Government Fund 4,033 4
-----------
TOTAL MONEY MARKETS 1,085
-----------
TOTAL INVESTMENTS (COST $537,570) (a) - 100.0% 537,570
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% 228
-----------
NET ASSETS - 100.0% $ 537,798
===========
See notes to schedules of portfolio investments
and notes to financial statements.
11
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (95.6%)
FEDERAL FARM CREDIT BANK (18.1%)
5.40%, 3/22/06 $ 500 $ 501
4.28%, 5/8/06 * 15,000 15,000
5.50%, 6/15/06 725 728
3.00%, 6/30/06 1,500 1,493
2.13%, 7/17/06 5,000 4,946
4.28%, 8/1/06 * 10,000 9,999
4.39%, 12/22/06 * 5,000 4,999
3.27%, 1/12/07 1,000 986
4.60%, 1/23/07 500 499
-----------
39,151
-----------
FEDERAL HOME LOAN BANK (77.5%)
4.21%, 2/1/06 ** 5,000 5,000
4.22%, 2/3/06 ** 10,600 10,598
4.37%, 2/6/06 ** 8,305 8,300
3.19%, 2/7/06 2,000 2,000
4.28%, 2/10/06 ** 12,858 12,844
2.00%, 2/13/06 6,525 6,521
2.38%, 2/15/06 13,785 13,775
4.37%, 2/22/06 ** 9,300 9,276
2.00%, 2/27/06 530 529
4.47%, 3/1/06 * 5,000 5,000
5.13%, 3/6/06 4,635 4,640
4.33%, 3/7/06 ** 3,035 3,023
4.34%, 3/8/06 ** 6,553 6,526
2.50%, 3/13/06 5,900 5,888
2.50%, 3/15/06 5,020 5,009
4.00%, 3/28/06 5,000 4,997
2.38%, 4/5/06 12,000 11,958
2.50%, 4/11/06 3,000 2,989
2.13%, 5/15/06 500 497
2.75%, 5/15/06 2,000 1,990
2.88%, 5/22/06 2,500 2,490
4.45%, 6/14/06 * 15,000 14,999
3.25%, 7/21/06 4,720 4,696
3.25%, 8/11/06 2,205 2,189
3.50%, 8/15/06 1,925 1,913
5.25%, 8/15/06 1,345 1,354
6.38%, 8/15/06 500 504
3.38%, 8/18/06 700 695
4.40%, 8/21/06 * 15,000 15,000
2.95%, 9/14/06 785 777
3.00%, 11/15/06 1,000 987
4.88%, 11/15/06 400 400
2.75%, 12/15/06 350 344
-----------
167,708
-----------
TOTAL U.S. GOVERNMENT AGENCIES 206,859
-----------
Continued
SHARES VALUE
- -------------------------------------------------------------------
MONEY MARKETS (4.7%)
Goldman Sachs Financial Square
Federal Fund 8,627,668 $ 8,628
STIT Government Tax
Advantage Fund 1,602,723 1,603
-----------
TOTAL MONEY MARKETS 10,231
-----------
TOTAL INVESTMENTS (COST $217,090) (a) - 100.3% 217,090
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (585)
-----------
NET ASSETS - 100.0% $ 216,505
===========
See notes to schedules of portfolio investments
and notes to financial statements.
12
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
TREASURY BILLS (10.5%)
3.84%, 3/2/06 ** $ 10,000 $ 9,970
3.81%, 3/23/06 ** 15,000 14,922
4.25%, 5/11/06 ** 30,000 29,657
4.24%, 6/15/06 ** 40,000 39,378
4.30%, 6/22/06 ** 15,000 14,753
4.29%, 6/29/06 ** 15,000 14,741
-----------
TOTAL TREASURY BILLS 123,421
-----------
TREASURY NOTES (11.0%)
1.63%, 2/28/06 20,000 19,975
4.63%, 5/15/06 45,000 45,091
2.75%, 6/30/06 40,000 39,767
2.75%, 7/31/06 25,000 24,807
-----------
TOTAL TREASURY NOTES 129,640
-----------
REPURCHASE AGREEMENTS (B) (78.6%)
ABN AMRO, 4.38%, 2/1/06 215,000 215,000
Barclays Capital, 4.37%, 2/1/06 200,000 200,000
Deutsche Bank, 4.39%, 2/1/06 200,000 200,000
Nesbitt Burns, 4.37%, 2/1/06 50,000 50,000
State Street, 4.29%, 2/1/06 7,765 7,765
UBS Investment Bank, 4.39%, 2/1/06 255,000 255,000
-----------
TOTAL REPURCHASE AGREEMENTS 927,765
-----------
MONEY MARKETS (0.2%)
AIM Treasury Money Market Fund 1,386,636 1,387
Goldman Sachs Financial Square
Treasury Obligation 1,192,350 1,192
-----------
TOTAL MONEY MARKETS 2,579
-----------
TOTAL INVESTMENTS (COST $1,183,405) (A) - 100.3% 1,183,405
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (3,551)
-----------
NET ASSETS - 100.0% $ 1,179,854
===========
See notes to schedules of portfolio investments
and notes to financial statements.
13
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
COMMERCIAL PAPER (1.3%)
State Building Authority, 3.17%,
2/2/06 $ 2,500 $ 2,500
-----------
TOTAL COMMERCIAL PAPER 2,500
-----------
MUNICIPAL BONDS (98.5%)
ALASKA (1.3%)
Valdez Marine Term Revenue, Exxon
Mobile Corp., 2.97%, 12/1/33 * 2,500 2,500
-----------
MICHIGAN (94.7%)
Ann Arbor Economic Development
Corp., Limited Obligation Revenue,
Glacier Hills, Inc. Project,
3.03%, 11/1/25 * 5,200 5,200
Ann Arbor School District Public
Schools, GO, 3.00%, 5/1/06 1,000 999
Building Authority, 3.02%, 10/15/40 * 9,500 9,500
Building Authority Revenue, Series III,
3.00%, 10/15/06 2,500 2,500
Cadillac Area Public Schools, 5.375%,
5/1/17 1,665 1,676
Chippewa Valley Schools, 4.00%,
5/1/06 370 371
Detroit City School District, 5.50%,
5/1/06 1,730 1,742
Detroit Sewage Disposal Revenue,
3.07%, 7/1/33 * 5,240 5,240
Detroit Waterfront Reclamation,
Series C, 3.17%, 5/1/09 * 7,405 7,406
Farmington Hills Economic
Development Corp., Marketing Displays,
(AMT), 3.25%, 9/1/08 * 470 470
Forest Hills Public Schools, 3.00%,
5/1/06 1,225 1,226
Genesee County Economic Development
Corp., Rawcar Group, (AMT), 3.15%,
5/1/20 * 2,190 2,190
Green Lake Township Economic
Development Corp., 3.02%, 6/1/34 * 3,600 3,600
Hospital Finance Authority Revenue
Balmoral, Inc., 3.25%, 9/1/16 * (c) 465 465
Hospital Financial Authority Revenue,
Hospital Equipment Loan Program,
3.05%, 12/1/23 * 60 60
Housing Development Authority, Hunt
Club Apartments, 3.06%, 7/15/35 * 475 475
Housing Development Authority,
Limited Obligation Revenue, Shoal
Creek, 3.10%, 10/1/07 * 2,100 2,100
Housing Development Authority, Ltd.,
3.03%, 6/1/25 * 150 150
Housing Development Authority, Ltd.,
3.08%, 1/1/29 * (c) 3,800 3,800
Continued
13
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Housing Development Authority,
Series A, 3.09%, 9/1/35 * $ 6,900 $ 6,900
Jackson County Economic Development
Corp., Limited Obligation Revenue, Vista
Grande Villa, Series A, 3.07%, 11/1/31 * 1,200 1,200
Jackson County Hospital Financial
Authority, Hospital Revenue, W.A. Foote
Memorial Hospital-B, 3.02%, 6/1/26 * 2,950 2,950
Jackson Public Schools, State Aid
Anticipation Notes, Series B, 3.75%,
5/24/06 1,250 1,253
Livonia Water Supply & Wastewater
Systems, 2.50%, 11/1/06 * 200 199
Mancelona Area Water, Sewer Authority,
Water Supply Systems Revenue, 3.10%,
4/1/21 * 990 990
Marquette City Hospital Finance,
Marquette General Hospital Group,
3.04%, 7/1/09 * 2,255 2,255
Marquette County Economic
Development Corp., Pioneer Labs, Inc.,
Series A, (AMT), 3.26%, 6/1/12 * 800 800
Municipal Bond Authority, Detroit
School District, Series A, 3.75%,
3/21/06 1,500 1,502
Municipal Bond Authority, Series B-1,
4.00%, 8/18/06 1,000 1,006
Municipal Bond Authority, Series C,
4.25%, 8/18/06 1,000 1,006
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/06 1,130 1,138
Oakland County Economic Development
Corp., Limited Obligation Revenue,
Moody Family, Ltd., (AMT), 3.19%,
9/1/12 * (c) 1,835 1,835
Oakland County Economic Development
Corp., North America, (AMT), 3.19%,
7/1/18 * (c) 1,600 1,600
Plymouth - Canton Community School
District, GO, 4.50%, 5/1/06 200 201
Southfield Economic Development,
Lawrence Technical University Project,
3.09%, 10/1/31 * 2,850 2,850
St. Clair Shores Economic Development
Corp., Borman's, Inc., (AMT), 3.60%,
10/15/06 * 180 180
State Comprehensive Transportation,
Series A, 5.00%, 5/15/06 250 251
State Hospital Finance Authority,
4.50%, 2/15/06 205 205
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
State Hospital Financial Authority
Revenue, Holland Community Hospital,
Series B, 3.04%, 1/1/34 * $ 1,400 $ 1,400
State, Series A, GO, 4.50%, 9/29/06 3,000 3,023
Sterling Heights Economic Development
Corp., Sterling Shopping Center, 3.05%,
12/1/10 * 555 555
Strategic Fund, Automatic Spring,
(AMT), 3.26%, 9/1/10 * 1,000 1,000
Strategic Fund, Banks Hardwoods, Inc.,
(AMT), 3.17%, 7/1/12 * (c) 757 757
Strategic Fund, Biewer of Lansing,
(AMT), 3.17%, 5/1/19 * 1,070 1,070
Strategic Fund, Brazing Concepts Co.,
(AMT), 3.35%, 9/1/18 * 1,500 1,500
Strategic Fund, Donnelly Corp., Series
A, (AMT), 3.15%, 3/1/10 * (c) 4,500 4,500
Strategic Fund, Donnelly Corp., Series
B, (AMT), 2.95%, 4/1/08 * (c) 2,500 2,500
Strategic Fund, Emerson Schools,
3.10%, 7/1/24 * 2,585 2,585
Strategic Fund, Environmental Powder
Co., (AMT), 3.17%, 7/1/22 * 235 235
Strategic Fund, Fitz-Land LLC, (AMT),
3.15%, 8/1/25 * 2,365 2,365
Strategic Fund, Fleet Engineers Project,
(AMT), 3.19%, 9/1/09 * 400 400
Strategic Fund, Forest City
Technologies, (AMT), 3.15%, 9/1/15 * 1,600 1,600
Strategic Fund, Frederick Wolfgang,
(AMT), 3.17%, 9/1/26 * 820 820
Strategic Fund, Glastender, Inc., (AMT),
3.35%, 9/1/08 * (c) 715 715
Strategic Fund, John Dekker & Sons,
(AMT), 3.17%, 1/1/18 * 355 355
Strategic Fund, Joy Properties LLC,
3.19%, 5/1/17 * (c) 580 580
Strategic Fund, Kaspari Investments
LLC, (AMT), 3.13%, 6/1/09 * 100 100
Strategic Fund, Kazoo, Inc., (AMT),
3.15%, 3/15/07 * 180 180
Strategic Fund, Kundinger, (AMT),
3.19%, 2/1/29 * (c) 1,185 1,185
Strategic Fund, Limited Obligation
Revenue, All American Property LLC,
(AMT), 3.50%, 12/1/18 * 800 800
Strategic Fund, Limited Obligation
Revenue, Aspen Reality LLC. Project,
(AMT), 3.50%, 7/1/13 * 200 200
Strategic Fund, Limited Obligation
Revenue, Besser International Sales Co.
Project, (AMT), 3.35%, 9/1/11 * 300 300
Continued
14
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, BK Real Estate Project, (AMT),
3.14%, 12/1/23 * $ 1,990 $ 1,990
Strategic Fund, Limited Obligation
Revenue, Bowers Manufacturing Co.
(AMT), 3.13%, 9/1/10 * (c) 500 500
Strategic Fund, Limited Obligation
Revenue, Cayman Chemical Company
Project, (AMT), 3.15%, 6/1/28 * (c) 930 930
Strategic Fund, Limited Obligation
Revenue, Creative Foam Corp. (AMT),
3.35%, 11/1/11 * 2,400 2,400
Strategic Fund, Limited Obligation
Revenue, CTD Real Estate Co. (AMT),
3.50%, 11/1/12 * 100 100
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc. (AMT),
3.13%, 3/1/11 * 2,100 2,100
Strategic Fund, Limited Obligation
Revenue, Detroit Symphony Project,
Series B, 3.07%, 6/1/31 * 1,100 1,100
Strategic Fund, Limited Obligation
Revenue, Eclipse Mold (AMT), 3.50%,
12/1/12 * (c) 400 400
Strategic Fund, Limited Obligation
Revenue, Flyer Fund Leasing LLC
Project, 3.35% (AMT), 11/1/17 * (c) 1,300 1,300
Strategic Fund, Limited Obligation
Revenue, Gebara Management Co. LLC
Project (AMT), 3.35%, 11/1/13 * 300 300
Strategic Fund, Limited Obligation
Revenue, Harbor Industries, Inc. Project,
(AMT), 3.26%, 4/1/25 * 400 400
Strategic Fund, Limited Obligation
Revenue, Henry Ford Museum Village
Project, 3.05%, 12/1/33 * 200 200
Strategic Fund, Limited Obligation
Revenue, Jet Enterprises, (AMT), 3.15%,
3/1/11 * (c) 700 700
Strategic Fund, Limited Obligation
Revenue, Lakeport Realty Project (AMT),
3.13%, 6/1/07 * (c) 400 400
Strategic Fund, Limited Obligation
Revenue, Landscape Forms, Inc. Project,
(AMT), 3.35%, 5/1/14 * 200 200
Strategic Fund, Limited Obligation
Revenue, Lansing Saint Vincent Home
Project, 3.03%, 8/1/28 * 1,800 1,800
Strategic Fund, Limited Obligation
Revenue, Metal Technologies Project,
(AMT), 3.15%, 7/1/19 * 2,000 2,000
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, Midwest Kellering Co. Project,
(AMT), 3.35%, 6/1/19 * $ 1,700 $ 1,700
Strategic Fund, Limited Obligation
Revenue, Milan Screw Products Inc.
Project, (AMT), 3.35%, 9/1/16 * 400 400
Strategic Fund, Limited Obligation
Revenue, MOT LLC Project, 3.03%,
12/1/34 * 1,300 1,300
Strategic Fund, Limited Obligation
Revenue, Non-Ferrous Cast Alloys
Project, (AMT), 3.35%, 3/1/19 * 500 500
Strategic Fund, Limited Obligation
Revenue, Oak Industrial Drive Project,
(AMT), 3.19%, 11/1/33 * 950 950
Strategic Fund, Limited Obligation
Revenue, Orchestra Place Renewal Project,
3.03%, 9/1/22 * 2,800 2,800
Strategic Fund, Limited Obligation
Revenue, Peachwood Center, 3.03%,
6/1/16 1,100 1,100
Strategic Fund, Limited Obligation
Revenue, Production Engineering Project,
(AMT), 3.13%, 6/1/13 * (c) 1,600 1,600
Strategic Fund, Limited Obligation
Revenue, Profile Industrial Packaging,
(AMT), 3.18%, 9/1/09 * 225 225
Strategic Fund, Limited Obligation
Revenue, R. L. Adams Plastics, Inc.,
(AMT), 3.19%, 5/1/23 * (c) 2,160 2,160
Strategic Fund, Limited Obligation
Revenue, RA Rink, LLC Project, (AMT),
3.50%, 11/1/17 * (c) 1,040 1,040
Strategic Fund, Limited Obligation
Revenue, RL Enterprises LLC (AMT),
3.13%, 12/1/09 * (c) 400 400
Strategic Fund, Limited Obligation
Revenue, Van Andel Research Institute
Project, 3.05%, 11/1/27 * 500 500
Strategic Fund, Limited Obligation
Revenue, Whitehall Industries, Inc.
Project, (AMT), 3.13%, 3/1/25 * 100 100
Strategic Fund, Limited Obligation
Revenue, Whitehall Industries, Inc.,
(AMT), 3.35%, 11/1/20 * 700 700
Strategic Fund, Lions Bear Lake Camp
Project, 3.15%, 8/1/32 * 1,070 1,070
Strategic Fund, MacArthur, (AMT),
3.13%, 6/1/15 * 2,100 2,100
Strategic Fund, Maco Steel, Inc.,
(AMT), 3.17%, 3/1/24 * 1,640 1,640
Strategic Fund, Merrill Group, (AMT),
3.25%, 10/1/22 * (c) 1,050 1,050
Continued
15
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Middleville Tool & Die
Project, (AMT), 3.35%, 9/1/13 * (c) $ 2,100 $ 2,100
Strategic Fund, Patten Monument,
(AMT), 3.17%, 11/1/26 * 710 710
Strategic Fund, Phipps Emmett
Association, (AMT), 3.26%, 12/1/23 * 2,000 2,000
Strategic Fund, Proto-Techniques,
(AMT), 3.19%, 12/1/26 * (c) 2,355 2,355
Strategic Fund, Protomark Corp.
Project, (AMT), 3.35%, 8/1/17 * (c) 400 400
Strategic Fund, SFI Acquisition, Inc.,
(AMT), 3.19%, 2/1/28 * (c) 990 990
Strategic Fund, Stegner East Investments
LLC Project, (AMT), 3.19%, 6/1/29 * (c) 3,090 3,090
Strategic Fund, Thompson Family
Holdings, (AMT), 3.25%, 7/1/28 * 910 910
Strategic Fund, Trenton Forging Co.,
(AMT), 3.13%, 6/1/20 * (c) 1,165 1,165
Strategic Fund, Trio Tool Co., (AMT),
3.17%, 7/1/24 * 1,325 1,325
Strategic Fund, Ultra Tech Printing Co.,
(AMT), 3.17%, 8/1/23 * 1,105 1,105
Strategic Fund, Waltec American
Forging, (AMT), 3.13%, 10/1/09 * (c) 1,615 1,615
Strategic Fund, Warren Screw Products,
Inc., (AMT), 3.35%, 9/1/16 * (c) 400 400
Strategic Fund, Wright K Technology,
Inc., (AMT), 3.25%, 5/1/17 * 595 595
Strategic Fund, YMCA Detroit Project,
3.07%, 5/1/31 * 1,000 1,000
University of Michigan Hospital
Revenue, Series A, 3.07%, 12/1/35 * 1,600 1,600
University of Michigan Hospital
Revenue, Series A, 3.07%, 12/1/19 * 3,600 3,600
University of Michigan, Medical Service
Plan, Series A-1, 3.07%, 12/1/21 * 4,700 4,700
University of Michigan, Series A-2,
3.07%, 12/1/24 * 1,600 1,600
Utica Community Schools, GO, 2.00%,
5/1/06 700 698
Walled Lake Consolidated School
District, 3.00%, 5/1/06 500 500
Warren Economic Development Corp.,
Limited Obligation, CMX Corp., (AMT),
3.15%, 3/15/07 * 525 525
Waterford School District, GO, 4.55%,
6/1/06 100 100
Wayne Charter County, Airport
Revenue, Detroit Metro County, (AMT),
3.07%, 12/1/16 * 500 500
-----------
177,954
-----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
PUERTO RICO (2.5%)
Industrial Medical & Environmental
Pollution Control, Facilities Financing
Authority, Abbott Laboratories, 2.55%,
3/1/23 * (c) $ 4,695 $ 4,695
-----------
TOTAL MUNICIPAL BONDS 185,149
-----------
MONEY MARKETS (0.0%)
AIM Tax Free Money Market Fund 285 --#
Dreyfus Tax Exempt Money
Market Fund 1,927 2
Goldman Sachs Financial Tax Free
Money Market Fund 47,511 48
Merrill Lynch Institutional Tax
Exempt Fund 41,322 41
-----------
TOTAL MONEY MARKETS 91
-----------
TOTAL INVESTMENTS (COST $187,740) (a) - 99.8% 187,740
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 329
-----------
NET ASSETS - 100.0% $ 188,069
===========
See notes to schedules of portfolio investments
and notes to financial statements.
16
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
COMMERCIAL PAPER (1.2%)
MICHIGAN (1.2%)
Building Authority Revenue, 3.17%,
2/2/06 $ 2,500 $ 2,500
-----------
TOTAL COMMERCIAL PAPER 2,500
-----------
MUNICIPAL BONDS (99.2%)
ARKANSAS (0.9%)
Sheridan Industrial Development,
3.05%, 8/1/14 * 2,000 2,000
-----------
COLORADO (13.0%)
Arapahoe County Water and Wastewater
Authority Revenue, Series A, 3.05%,
12/1/33 * 4,000 4,000
Aurora Centretech, Metropolitan District,
Series A, 3.45%, 12/1/28 * 1,000 1,000
Castlewood Ranch Metropolitan District,
3.45%, 12/1/34 2,500 2,500
Central Platte Valley Metropolitan
District, 3.45%, 12/1/31 * 500 500
Colorado Springs, Pikes Peak YMCA,
3.04%, 11/1/22 * 800 800
Colorado Springs, Revenue, National
Strength and Condition, 3.14%, 11/1/22 * 660 660
Durango, Revenue, Health and Human
Services, 3.14%, 12/15/14 * 640 640
Educational & Cultural Facility, 3.07%,
12/1/34 * 7,040 7,040
Educational & Cultural Facility, 3.07%,
9/1/35 * 1,600 1,600
Educational & Cultural Facility, Series
A4, 3.07%, 2/1/34 * 1,900 1,900
Educational and Cultural Facility
Authority Revenue, Community Wireless
Park City, 3.07%, 12/1/23 * 765 765
Holland Creek, 3.04%, 6/1/41 * 740 740
Parker, Automotive Metropolitan
District, 2.85%, 12/1/34 * 2,000 2,000
Pinery West Metropolitan District No.
2, 3.25%, 11/1/32 4,200 4,200
-----------
28,345
-----------
GEORGIA (1.4%)
Dekalb County, Development Authority
Revenue, Oglethorpe University, 3.03%,
10/1/29 * 1,000 1,000
Fulton County, Development Authority
Revenue, Holy Innocents Episcopal,
3.03%, 8/1/24 * 2,100 2,100
-----------
3,100
-----------
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
IDAHO (4.5%)
Power County, Pollution Control
Revenue, FMC Corp. Project, 3.07%,
12/1/10 * $ 9,830 $ 9,830
-----------
ILLINOIS (16.1%)
Development Finance Authority, Roosevelt
University Project, 3.05%, 4/1/32 * 2,000 2,000
Development Finance Authority
Revenue, McCormick Theological, Series
B, 3.05%, 6/1/35 * 2,000 2,000
Development Finance Authority
Revenue, St. Anne Place Project, 3.10%,
6/1/22 * 2,970 2,970
Development Finance Authority, WTVP
Channel 47, Series A, Lake County
Family YMCA, 3.07%, 9/1/22 * 3,650 3,650
Development Financial Authority
Pollution Control Revenue, Diamond
Star Motors Project, 3.10%, 12/1/08 * 1,700 1,700
Development Financial Authority
Revenue, World Communications, Inc.,
3.09%, 8/1/15 * 875 875
Educational Facilities Authority, Field
Museum of Natural History, 3.09%,
11/1/25 * (c) 4,900 4,900
Educational Facilities Authority, Lake
County Family YMCA, 3.09%, 11/1/30 * 1,450 1,450
Galesburg, Knox College, 3.04%, 7/1/24 * 2,400 2,400
Health Facilities Authority, 3.05%,
1/1/16 * (c) 2,000 2,000
Lake Villa, Allendale Association,
3.10%, 10/1/26 * 4,640 4,640
Macon County, Millikin University,
3.06%, 10/1/31 * 700 700
Peoria, Peoria Academy, 3.14%, 9/1/26 * 4,300 4,300
Southern Illinois University Revenue,
3.25%, 4/1/06 100 100
Springfield Community Improvement,
3.05%, 12/1/25 * 1,000 1,000
Springfield Electric Revenue, 6.00%,
3/1/06 400 401
-----------
35,086
-----------
INDIANA (8.7%)
Advanced Funding Program, Series A,
4.50%, 2/1/07 1,000 1,012
Crawfordsville, Economic Development,
Autumn Woods Apartments, Series A,
3.05%, 1/1/30 * 3,349 3,349
Dekko Foundation Educational Facilities
Revenue, Series I, 3.22%, 4/1/21 * (c) 605 605
Continued
17
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Development Financial Authority
Revenue, Industrial Development
Revenue, Indiana University Foundation
Project, 3.09%, 8/1/18 * (c) $ 1,800 $ 1,800
Development Financial Authority,
Mental Health, 3.14%, 12/1/22 * (c) 3,400 3,400
Development Financial Authority,
Regional Council of Carpenters, 3.15%,
9/1/31 * 1,195 1,195
Educational Facility Authority Revenue,
3.02%, 12/1/08 * 1,165 1,165
Healthcare Facilities Revenue, Southern
Indiana Rehabilitation Hospital, 3.14%,
4/1/20 * 1,575 1,575
Indianapolis, State Development Finance
Authority, Lutheran Educational
Facilities Project, 3.14%, 10/1/17 * (c) 2,475 2,475
Saint Joseph County, Economic
Development Revenue, 3.14%, 6/1/22 * 2,400 2,400
-----------
18,976
-----------
IOWA (1.7%)
Financial Authority, Diocese of Sioux
City, 3.04%, 3/1/19 * 1,640 1,640
Higher Education Loan Authority,
3.07%, 11/1/32 * 750 750
Higher Education Authority, 3.07%,
4/1/33 * 1,300 1,300
-----------
3,690
-----------
KANSAS (0.3%)
Development Finance Authority, Shalom
Revenue, 3.07%, 11/15/28 * 750 750
-----------
KENTUCKY (0.4%)
Breckinridge County Lease Program,
3.07%, 2/1/32 * 850 850
-----------
MARYLAND (0.3%)
Baltimore County Economic
Development Revenue, Garrison Forest
School Project, 3.08%, 6/1/26 * 545 545
-----------
MICHIGAN (18.0%)
Ann Arbor Economic Development
Corp., Limited Obligation Revenue,
Glacier Hills, Inc. Project,
3.03%, 11/1/25 * 3,000 3,000
Green Lake Township Economic
Development Corp., 3.02%, 6/1/34 * 300 300
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A, 3.07%,
3/1/14 * 7,325 7,325
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A, 3.07%,
3/1/30 * 2,500 2,500
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Jackson County Economic Development
Corp., Limited Obligation Revenue, Vista
Grande Villa, Series A, 3.07%, 11/1/31 * $ 500 $ 500
Livonia Economic Development Corp.,
3.02%, 8/1/15 * 1,220 1,220
Strategic Fund, Limited Obligation
Revenue, Detroit Symphony Project,
Series B, 3.07%, 6/1/31 * 4,055 4,055
Strategic Fund, Limited Obligation
Revenue, Henry Ford Museum Village
Project, 3.05%, 12/1/33 * 3,200 3,200
Strategic Fund, Limited Obligation
Revenue, Lansing Saint Vincent Home
Project, 3.03%, 8/1/28 * 4,845 4,845
Strategic Fund, Limited Obligation
Revenue, Orchestra Place Renewal Project,
3.03%, 9/1/22 * 1,200 1,200
Strategic Fund, YMCA Metropolitan
Detroit Project, 3.02%, 11/1/33 * 1,650 1,650
University of Michigan Hospital
Revenue, Series A, 3.07%, 12/1/35 * 2,000 2,000
University of Michigan Hospital
Revenue, Series A, 3.07%, 12/1/19 * 3,400 3,400
University of Michigan, Medical Service
Plan, Series A-1, 3.07%, 12/1/21 * 1,000 1,000
University of Michigan, Series A-2,
3.07%, 12/1/24 * 2,700 2,700
-----------
38,895
-----------
MINNESOTA (4.7%)
Center City Health Care Facility, 3.07%,
11/1/35 * 1,000 1,000
Lauderdale, Children's Home Society,
3.17%, 12/1/30 * 520 520
Minneapolis, Minnehaha Academy
Project, 3.17%, 5/1/26 * 3,600 3,600
Minnesota State Higher Education, Olaf
College, 3.07%, 10/1/20 * 1,250 1,250
Roseville Health Care Facilities
Revenue, Presbyterian Homes Project,
3.12%, 10/1/29 * 2,630 2,630
State Higher Education Facilities,
Series 5-M1, 3.07%, 10/1/32 * 1,190 1,190
-----------
10,190
-----------
MISSOURI (2.6%)
Health & Educational Facilities
Authority, Saint Francis Medical Center,
Series A, 3.07%, 6/1/26 * 1,300 1,300
Missouri, State Health & Education
Facilities Authority, Drury College,
3.12%, 8/15/24 * 1,000 1,000
State Health & Educational Facilities
Authority, Drury University, 3.12%,
8/15/28 * 1,645 1,645
Continued
18
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- -------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MISSOURI, CONTINUED
State Health & Educational Facilities
Authority, Missouri Valley College,
3.12%, 10/1/31 * $ 1,600 $ 1,600
-----------
5,545
-----------
NORTH CAROLINA (0.7%)
Davie County Public School &
Community College Facility, 3.50%,
6/1/06 445 445
Lee County Industrial Facilities &
Pollution Control Funding Authority
Revenue, Trion, Inc. Project, 3.13%,
11/1/11 * (c) 1,000 1,000
-----------
1,445
-----------
OHIO (7.6%)
Butler County, Healthcare Facilities,
2.93%, 5/1/27 * 1,000 1,000
Columbiana County, Revenue, East
Liverpool, 3.10%, 10/1/23 * 4,785 4,785
Coshocton County, Hospital Revenue,
3.14%, 3/1/14 * (c) 190 190
Greene County, 3.50%, 8/16/06 1,000 1,003
Independence, Economic Development
Revenue, 3.10%, 12/1/16 * 2,660 2,660
Montgomery County, Economic
Development, Benjamin & Marian Arts
Center, Series A, 3.10%, 4/1/11 * 1,200 1,200
Montgomery County, Economic
Development, The Dayton Art Institute,
3.09%, 5/1/26 * 1,400 1,400
Montgomery County, Health Care
Facilities, Community Blood Center,
3.14%, 12/1/20 * 1,580 1,580
State Higher Education Facilities
Revenue, Ashland University Project,
3.07%, 9/1/24 * 1,915 1,915
Summit County, Industrial Development
Revenue, SSP Fittings Corporate Project,
3.14%, 9/1/11 * 890 890
-----------
16,623
-----------
PENNSYLVANIA (8.9%)
Allegheny County, Industrial
Development Authority Revenue, Sacred
Heart High School, 3.09%, 6/1/22 * 1,200 1,200
Allegheny County, Industrial
Development Authority Revenue,
Sewickley Academy, Series A, 3.10%,
11/1/22 * 1,100 1,100
Chester County, Industrial Development
Authority Revenue, Archdiocese of
Philadelphia, 3.05%, 7/1/31 * 7,350 7,351
Higher Educational Facilities Authority
Revenue, 3.19%, 11/1/12 1,600 1,600
Continued
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
PENNSYLVANIA, CONTINUED
North Wales Water Authority, Rural
Water Projects Revenue,
4.00%, 10/1/06 $ 3,000 $ 3,018
Philadelphia Authority for Industrial
Development Revenues, Newcourtland
Elderly Services Project, 3.05%, 3/1/27 * 2,350 2,350
Schuylkill County, Industrial
Development Authority, Northeastern
Power Co., 3.15%, 12/1/22 * 1,150 1,150
Westmoreland County Industrial
Development Authority, 3.05%, 12/1/24 * 1,500 1,500
-----------
19,269
-----------
TENNESSEE (0.6%)
Clarksville Public Building Authority
Revenue, Pooled Funding, Municipal
Bond Fund, 3.08%, 7/1/31 * 600 600
Clarksville, Public Building Authority
Revenue, Pooled Funding, Municipal
Bond Fund, 3.08%, 1/1/33 * 200 200
Clarksville, Public Building Authority
Revenue, Pooled Funding, Municipal
Bond Fund, 3.08%, 7/1/34 * 500 500
-----------
1,300
-----------
TEXAS (1.9%)
Lufkin Health Facilities Development
Corp., 3.07%, 2/15/35 * 1,000 1,000
North Texas Municipal Water District,
Upper Efork Wastewater Interception
Contract, 4.50%, 6/1/06 1,150 1,155
Tax & Revenue Anticipation Notes,
4.50%, 8/31/06 2,000 2,017
-----------
4,172
-----------
UTAH (1.2%)
Salt Lake County Training Facilities
Revenue, Community Foundation
Disabled Project, 3.14%, 8/1/30 * 1,540 1,540
Weber County Industrial Revenue,
Enable Industries, Inc., 3.14%, 12/1/15 * 1,000 1,000
-----------
2,540
-----------
VIRGINIA (0.6%)
Suffolk Redevelopment & Housing
Authority, Multi-Family Housing
Revenue, North Beach Apartments,
3.13%, 9/1/19 * (c) 1,400 1,400
-----------
WASHINGTON (5.1%)
Bremerton Revenue, 3.07%, 12/1/28 * 3,100 3,100
Health Care Facilities Authority
Revenue, Inland Northwest Blood,
3.07%, 8/1/26 * 4,055 4,055
19
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
WASHINGTON, CONTINUED
King County Housing Authority
Revenue, Summerfield Apartments
Project, 3.08%, 9/1/35 * $ 2,000 $ 2,000
Richland Gold Enterprises Revenue,
3.04%, 12/1/21 * (c) 1,355 1,355
Housing Finance Nonprofit
Revenue, 3.03%, 12/1/23 * 500 500
-----------
11,010
-----------
TOTAL MUNICIPAL BONDS 215,561
-----------
MONEY MARKETS (0.0%)
AIM Tax Free Money Market Fund 1,484 1
Dreyfus Tax Exempt Money Market
Fund 52,880 53
Goldman Sachs Financial Tax Free
Money Market Fund 21,229 21
-----------
TOTAL MONEY MARKETS 75
-----------
TOTAL INVESTMENTS (COST $218,136) (a) - 100.4% 218,136
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.4)% (839)
-----------
NET ASSETS - 100.0% $ 217,297
===========
NOTES TO SCHEDULES OF
PORTFOLIO INVESTMENTS
* Variable rate security. Rate presented represents the rate in effect at
January 31, 2006. Maturity date reflects the actual maturity date.
** Effective yield at purchase.
# Value is less than five hundred dollars.
(a) Also represents cost for federal income tax purposes.
(b) Proceeds at maturity range from $1,366 to $255,031. Collateralized by
various U.S. Treasury and Government Agency securities, 0.00%-12.00%,
04/13/06 - 04/15/32, value $936,129.
(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
FHLB - Federal Home Loan Bank
GO - General Obligation
LOC - Letter of Credit
See notes to schedules of portfolio investments
and notes to financial statements.
20
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FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL
MONEY MARKET MONEY MARKET GOVERNMENT MONEY
ASSETS: FUND FUND MARKET FUND
-------------- --------------- -------------------
Investments, at amortized cost $1,188,061 $1,226,702 $379,133
Repurchase agreements, at cost 126,366 177,049 158,437
---------- ---------- --------
Total Investments, at value 1,314,427 1,403,751 537,570
Cash 1 --^ 1
Interest receivable 5,871 5,690 2,242
Receivable from Advisor and affiliates 6 14 10
Prepaid expenses and other assets 55 38 31
---------- ---------- --------
Total Assets 1,320,360 1,409,493 539,854
---------- ---------- --------
LIABILITIES:
Distributions payable 4,289 4,704 1,865
Payable for investments purchased -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 477 138 59
Distribution and administrative services fees 90 17 52
Other 134 82 80
---------- ---------- --------
Total Liabilities 4,990 4,941 2,056
---------- ---------- --------
NET ASSETS:
Paid-in Capital $1,315,384 $1,404,540 $537,791
Accumulated net investment income 85 13 7
Accumulated net realized loss from
investment transactions (99) (1) --
---------- ---------- --------
Net Assets $1,315,370 $1,404,552 $537,798
========== ========== ========
Net Assets:
Institutional Shares $897,534 $1,295,297 $219,563
Class A Shares 414,841 NA NA
Class B Shares 917 NA NA
Class C Shares 1,468 NA NA
Advisor Shares 610 NA NA
Select Shares NA 29,403 3,127
Preferred Shares NA 19,981 201,085
Trust Shares NA 59,871 114,023
---------- ---------- --------
Total $1,315,370 $1,404,552 $537,798
========== ========== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 897,584 1,295,287 219,558
Class A Shares 414,846 NA NA
Class B Shares 918 NA NA
Class C Shares 1,468 NA NA
Advisor Shares 610 NA NA
Select Shares NA 29,403 3,127
Preferred Shares NA 19,980 201,084
Trust Shares NA 59,872 114,023
---------- ---------- --------
Total 1,315,426 1,404,542 537,792
========== ========== ========
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
========== ========== ========
GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
ASSETS: FUND FUND FUND FUND
-------------- -------------- ------------------- --------------
Investments, at amortized cost $217,090 $ 255,640 $187,740 $218,136
Repurchase agreements, at cost -- 927,765 -- --
-------- ---------- -------- --------
Total Investments, at value 217,090 1,183,405 187,740 218,136
Cash -- 1 -- --^
Interest receivable 1,197 832 801 725
Receivable from Advisor and affiliates -- 8 2 5
Prepaid expenses and other assets 17 40 6 17
-------- ---------- -------- --------
Total Assets 218,304 1,184,286 188,549 218,883
-------- ---------- -------- --------
LIABILITIES:
Distributions payable 690 3,998 391 532
Payable for investments purchased 986 -- -- 1,011
Accrued expenses and other payables:
Payable to Advisor and affiliates 80 119 64 24
Distribution and administrative services fees 11 115 --^ 6
Other 32 200 25 13
-------- ---------- -------- --------
Total Liabilities 1,799 4,432 480 1,586
-------- ---------- -------- --------
NET ASSETS:
Paid-in Capital $216,460 $1,179,996 $188,079 $217,302
Accumulated net investment income 47 --^ (10) --^
Accumulated net realized loss from
investment transactions (2) (142) -- (5)
-------- ---------- -------- --------
Net Assets $216,505 $1,179,854 $188,069 $217,297
======== ========== ======== ========
Net Assets:
Institutional Shares $133,970 $337,264 $187,963 $183,399
Class A Shares 82,535 NA 106 24,459
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 71,752 NA 3,883
Preferred Shares NA 620,815 NA 36
Trust Shares NA 150,023 NA 5,520
-------- ---------- -------- --------
Total $216,505 $1,179,854 $188,069 $217,297
======== ========== ======== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 134,003 337,196 187,922 183,395
Class A Shares 82,581 NA 106 24,471
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 71,750 NA 3,883
Preferred Shares NA 620,788 NA 36
Trust Shares NA 150,019 NA 5,520
-------- ---------- -------- --------
Total 216,584 1,179,753 188,028 217,305
======== ========== ======== ========
Net Asset Value
Offering and redemption price per share -
Institutional Shares, Class A Shares,
Class B Shares, Class C Shares, Advisor Shares,
Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ======== ========
- --------------------------------------------------------------------------------
(a) Redemption price per share for Class B Shares and Class C Shares varies by
length of time shares are held.
^ Amount is less than five hundred dollars.
See notes to financial statements
22-23 SPREAD
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL
MONEY MARKET MONEY MARKET GOVERNMENT MONEY
FUND FUND MARKET FUND
-------------- -------------- --------------------
INVESTMENT INCOME:
Interest income $27,902 $24,746 $11,624
Dividend income 93 118 46
------- ------- -------
Total Investment Income 27,995 24,864 11,670
------- ------- -------
EXPENSES:
Investment advisory fees 2,822 2,513 1,206
Administrative fees 1,242 1,100 528
Distribution services fees-Class A Shares 535 NA NA
Distribution services fees-Class B Shares 5 NA NA
Distribution services fees-Class C Shares 6 NA NA
Distribution services fees-Advisor Shares 1 NA NA
Administrative services fees-Class C Shares 2 NA NA
Administrative services fees-Select Shares NA 12 1
Administrative services fees-Preferred Shares NA 21 179
Administrative services fees-Trust Shares NA 47 159
Accounting fees 138 122 80
Transfer and dividend disbursing agent fees 158 118 77
Custody fees 36 29 24
Trustees' fees and expenses 25 23 11
Other expenses 176 152 88
------- ------- -------
Total expenses 5,146 4,137 2,353
------- ------- -------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (771) (2,741) (1,365)
Transfer and dividend disbursing agent fees waived (6) (5) (5)
Distribution services-Class A Shares, Class B Shares,
Class C Shares and Advisor Shares waived -- -- --
------- ------- -------
Net Expenses 4,369 1,391 983
------- ------- -------
Net Investment Income 23,626 23,473 10,687
------- ------- -------
Net realized gains (losses) on investment transactions -- -- --
------- ------- -------
Change in net assets resulting from operations $23,626 $23,473 $10,687
======= ======= =======
GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
-------------- -------------- -------------------- -------------
INVESTMENT INCOME:
Interest income $4,401 $23,345 $2,463 $2,747
Dividend income 157 118 41 60
------ ------- ------ ------
Total Investment Income 4,558 23,463 2,504 2,807
------ ------- ------ ------
EXPENSES:
Investment advisory fees 473 2,471 351 507
Administrative fees 208 1,082 154 184
Distribution services fees-Class A Shares 114 NA --^ 29
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 30 NA --^
Administrative services fees-Preferred Shares NA 527 NA --^
Administrative services fees-Trust Shares NA 154 NA 8
Accounting fees 33 121 27 49
Transfer and dividend disbursing agent fees 32 127 20 30
Custody fees 15 47 12 17
Trustees' fees and expenses 4 21 3 4
Other expenses 32 167 22 30
------ ------- ------ ------
Total expenses 911 4,747 589 858
------ ------- ------ ------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (107) (2,731) (115) (525)
Transfer and dividend disbursing agent fees waived -- (5) -- --
Distribution services-Class A Shares, Class B Shares,
Class C Shares and Advisor Shares waived (30) -- --^ --
------ ------- ------ ------
Net Expenses 774 2,011 474 333
------ ------- ------ ------
Net Investment Income 3,784 21,452 2,030 2,474
------ ------- ------ ------
Net realized gains (losses) on investment transactions --^ 3 -- --
------ ------- ------ ------
Change in net assets resulting from operations $3,784 $21,455 $2,030 $2,474
====== ======= ====== ======
- --------------
^ 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
-------------------------- -------------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
----------- ----------- ---------- ----------- --------- -----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 23,626 $ 26,689 $ 23,473 $ 26,251 $ 10,687 $ 12,286
Net realized gains (losses) from
investment transactions -- (99) -- (1) -- --^
----------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from operations 23,626 26,590 23,473 26,250 10,687 12,286
----------- ----------- ---------- ----------- --------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (16,796) (19,802) (21,794) (24,724) (4,295) (4,760)
Class A Shares (6,793) (6,827) NA NA NA NA
Class B Shares (13) (43) NA NA NA NA
Class C Shares (18) (16) NA NA NA NA
Advisor Shares (6) (1) NA NA NA NA
Select Shares NA NA (527) (380) (47) (94)
Preferred Shares NA NA (493) (726) (4,177) (5,145)
Trust Shares NA NA (675) (421) (2,168) (2,287)
----------- ----------- ---------- ----------- --------- -----------
Change in net assets from
shareholder distributions (23,626) (26,689) (23,489) (26,251) (10,687) (12,286)
----------- ----------- ---------- ----------- --------- -----------
Change in net assets from
fund share transactions (110,612) (30,495) 255,159 41,738 (78,383) 40,484
----------- ----------- ---------- ----------- --------- -----------
Change in net assets (110,612) (30,594) 255,143 41,737 (78,383) 40,484
NET ASSETS:
Beginning of period 1,425,982 1,456,576 1,149,409 1,107,672 616,181 575,697
----------- ----------- ---------- ----------- --------- -----------
End of period $ 1,315,370 $ 1,425,982 $1,404,552 $ 1,149,409 $ 537,798 $ 616,181
=========== =========== ========== =========== ========= ===========
Accumulated Net Investment Income/(Loss) $ 85 $ 85 $ 13 $ 29 $ 7 $ 7
=========== =========== ========== =========== ========= ===========
GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
FUND FUND
------------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
--------- --------- ---------- ----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 3,784 $ 4,496 $ 21,452 $ 27,542
Net realized gains (losses) from
investment transactions --^ --^ 3 13
--------- --------- ---------- ----------
Change in net assets resulting
from operations 3,784 4,496 21,455 27,555
--------- --------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (2,374) (2,887) (6,052) (7,279)
Class A Shares (1,391) (1,581) 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 (1,301) (1,723)
Preferred Shares NA NA (12,034) (16,072)
Trust Shares NA NA (2,065) (2,468)
--------- --------- ---------- ----------
Change in net assets from
shareholder distributions (3,765) (4,468) (21,452) (27,542)
--------- --------- ---------- ----------
Change in net assets from
fund share transactions (22,917) (44,643) (83,610) (497,345)
--------- --------- ---------- ----------
Change in net assets (22,898) (44,615) (83,607) (497,332)
NET ASSETS:
Beginning of period 239,403 284,018 1,263,461 1,760,793
--------- --------- ---------- ----------
End of period $ 216,505 $ 239,403 $1,179,854 $1,263,461
========= ========= ========== ==========
Accumulated Net Investment Income/(Loss) $ 47 $ 28 $ --^ $ --^
========= ========= ========== ==========
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
FUND FUND
------------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,030 $ 2,648 $ 2,474 $ 2,835
Net realized gains (losses) from
investment transactions -- --^ -- --
--------- --------- --------- ---------
Change in net assets resulting
from operations 2,030 2,648 2,474 2,835
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (2,029) (2,647) (2,146) (2,449)
Class A Shares (1) (1) (255) (318)
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) (4)
Preferred Shares NA NA --^ (2)
Trust Shares NA NA (69) (62)
--------- --------- --------- ---------
Change in net assets from
shareholder distributions (2,030) (2,648) (2,474) (2,835)
--------- --------- --------- ---------
Change in net assets from
fund share transactions 23,555 (32,729) (4,795) 66,456
--------- --------- --------- ---------
Change in net assets 23,555 (32,729) (4,795) 66,456
NET ASSETS:
Beginning of period 164,514 197,243 222,092 155,636
--------- --------- --------- ---------
End of period $ 188,069 $ 164,514 $ 217,297 $ 222,092
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ (10) $ (10) $ --^ $ --^
========= ========= ========= =========
(a) Unaudited.
^ Amount is less than five hundred dollars.
See notes to financial statements
26-27 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL GOVERNMENT
MONEY MARKET FUND MONEY MARKET MONEY MARKET
FUND FUND FUND
---------------------- -------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
--------- --------- --------- --------- --------- ---------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 837,813 2,228,288 2,950,192 4,778,153 966,823 1,880,786
Dividends reinvested 2,064 2,262 9,034 11,952 633 564
Shares redeemed (901,077) (2,336,368) (2,741,173) (4,762,451) (1,012,602) (1,840,494)
--------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (61,200) (105,818) 218,053 27,654 (45,146) 40,856
--------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 327,018 413,667 NA NA NA NA
Dividends reinvested 6,499 6,049 NA NA NA NA
Shares redeemed (383,067) (342,721) NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares (49,550) 76,995 NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 319 32,582 NA NA NA NA
Dividends reinvested 8 9 NA NA NA NA
Shares redeemed (750) (32,901) NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares (423) (310) NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 1,099 398 NA NA NA NA
Dividends reinvested 16 14 NA NA NA NA
Shares redeemed (1,122) (1,780) NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares (7) (1,368) NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 1,048 210 NA NA NA NA
Dividends reinvested 5 --^ NA NA NA NA
Shares redeemed (485) (204) NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 568 6 NA NA NA NA
--------- ---------- ---------- ---------- ---------- ----------
Select Shares
Shares issued NA NA 59,320 66,974 6,847 70,606
Dividends reinvested NA NA 424 261 -- 9
Shares redeemed NA NA (54,265) (56,578) (5,896) (73,641)
--------- ---------- ---------- ---------- ---------- ----------
Total Select Shares NA NA 5,479 10,657 951 (3,026)
--------- ---------- ---------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA 91,292 267,927 417,484 1,094,119
Dividends reinvested NA NA 389 538 2,100 1,965
Shares redeemed NA NA (94,878) (272,494) (447,054) (1,143,902)
--------- ---------- ---------- ---------- ---------- ----------
Total Preferred Shares NA NA (3,197) (4,029) (27,470) (47,818)
--------- ---------- ---------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA 135,586 119,393 163,937 288,065
Dividends reinvested NA NA 304 343 148 322
Shares redeemed NA NA (101,065) (112,280) (170,804) (237,914)
--------- ---------- ---------- ---------- ---------- ----------
Total Trust Shares NA NA 34,825 7,456 (6,719) 50,473
--------- ---------- ---------- ---------- ---------- ----------
GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
FUND FUND
----------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
--------- --------- --------- ----------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 123,308 302,031 444,121 1,181,212
Dividends reinvested 18 25 378 337
Shares redeemed (133,394) (331,912) (402,819) (1,285,163)
--------- --------- --------- ----------
Total Institutional Shares (10,068) (29,856) 41,680 (103,614)
--------- --------- --------- ----------
Class A Shares
Shares issued 44,064 95,093 NA NA
Dividends reinvested 1,194 1,290 NA NA
Shares redeemed (58,106) (111,171) NA NA
--------- --------- --------- ----------
Total Class A Shares (12,848) (14,788) 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 333,233 721,963
Dividends reinvested NA NA -- --^
Shares redeemed NA NA (344,652) (732,025)
--------- --------- --------- ----------
Total Select Shares NA NA (11,419) (10,062)
--------- --------- --------- ----------
Preferred Shares
Shares issued NA NA 2,165,754 3,142,600
Dividends reinvested NA NA 2,502 2,434
Shares redeemed NA NA (2,314,132) (3,481,318)
--------- --------- --------- ----------
Total Preferred Shares NA NA (145,876) (336,284)
--------- --------- --------- ----------
Trust Shares
Shares issued NA NA 192,083 498,703
Dividends reinvested NA NA 7 14
Shares redeemed NA NA (160,086) (546,101)
--------- --------- --------- ----------
Total Trust Shares NA NA 32,004 (47,384)
--------- --------- --------- ----------
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
FUND FUND
---------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
--------- --------- --------- ---------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 208,953 431,915 335,214 548,248
Dividends reinvested 707 940 236 179
Shares redeemed (186,101) (465,676) (339,881) (496,898)
--------- --------- --------- ---------
Total Institutional Shares 23,559 (32,821) (4,431) 51,529
--------- --------- --------- ---------
Class A Shares
Shares issued 373 118 67,925 128,126
Dividends reinvested 1 --^ 230 281
Shares redeemed (378) (26) (69,212) (120,484)
--------- --------- --------- ---------
Total Class A Shares (4) 92 (1,057) 7,923
--------- --------- --------- ---------
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 4,650 960
Dividends reinvested NA NA --^ 3
Shares redeemed NA NA (853) (1,740)
--------- --------- --------- ---------
Total Select Shares NA NA 3,797 (777)
--------- --------- --------- ---------
Preferred Shares
Shares issued NA NA -- 6
Dividends reinvested NA NA --^ 2
Shares redeemed NA NA -- (609)
--------- --------- --------- ---------
Total Preferred Shares NA NA --^ (601)
--------- --------- --------- ---------
Trust Shares
Shares issued NA NA 16,866 31,202
Dividends reinvested NA NA 21 12
Shares redeemed NA NA (19,992) (22,833)
--------- --------- --------- ---------
Total Trust Shares NA NA (3,105) 8,381
--------- --------- --------- ---------
(a) Unaudited.
* Share transactions are at a par value of $1.00 per share.
^ Amount is less than five hundred shares.
See notes to financial statements
28-29 SPREAD
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 January 31, 2006, the
Trust consisted of thirty-six separate investment portfolios, one of which is
not currently offered.
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
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
the Funds to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least equals
the repurchase price to be paid under the repurchase agreement transaction.
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Funds could receive less
than the repurchase price on the sale of collateral securities.
SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are
accounted for on the date the security is purchased or sold (trade date).
Interest income is recognized on the accrual basis and includes, where
applicable, amortization or accretion of the premium or discount. Gains or
losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
OTHER--Expenses directly attributable to a Fund are charged to the Fund, while
expenses which are attributable to more than one series of the Trust are
allocated among the respective series based upon relative net assets or another
appropriate basis. Income, expenses, and realized and unrealized gains or losses
on investments are allocated to each class of shares based on its relative net
assets or another appropriate basis, except that each class separately bears
expenses related specifically to that class, such as distribution fees.
DISTRIBUTIONS TO SHAREHOLDERS--Dividends from net investment income are declared
daily and paid monthly and distributable net realized gains, if any, are
declared and distributed at least annually. Dividends from net investment income
and from net realized gains are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for expiring capital
loss carryforwards and deferrals of certain losses.
FEDERAL TAXES--It is the policy of each Fund to qualify or continue to qualify
as a regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially all,
federal income taxes.
(3) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--The Advisor receives for its services an annual
investment advisory fee based on a percentage of each Fund's average daily net
assets, as follows: 0.40% for the Prime Money Market Fund, Institutional Money
Market Fund, Institutional Government Money Market Fund, Government Money Market
Fund, U.S. Treasury Money Market Fund, and Michigan Municipal Money Market Fund
and 0.50% for the Municipal Money Market Fund.
ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third"), an affiliate of the
Advisor, serves as the Trust's administrator. The administrator generally
assists in all aspects of the Trust's administration and operations including
providing the Funds with certain administrative personnel and services necessary
to operate the Funds. Under the terms of the administration agreement, Fifth
Third's fees are computed as a percentage of the average daily net assets of the
Trust for the period. Administration fees are computed at 0.20% of the first $1
billion of the average daily net assets of the Trust, 0.18% of the average daily
net assets of the Trust between $1 billion and $2 billion, 0.17% of the average
daily net assets of the Trust between $2 billion and $15 billion, and 0.15% of
more than $15 billion of the average daily net assets of the Trust. In addition,
there shall be an annual flat fee per class in excess of four classes per Fund
and each Fund is subject to an annual minimum fee. 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 Trust including providing certain administrative
personnel and services necessary to operate the Trust, for which it received
$825,187 in fees from Fifth Third during the six-month period ended January 31,
2006, computed as a percentage (up to 0.0145%) of the average daily net assets
of the Trust, subject to certain minimums and reimbursement of certain expenses.
Under a Compliance Services Agreement between the Funds', Fifth Third, and BISYS
(the "CCO Agreement"), BISYS makes an employee available to serve as the Funds'
Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS also
provides infrastructure and support in implementing the written policies and
procedures comprising the Funds' compliance program, including support services
to the CCO. For the services provided under the CCO Agreement, the Funds pay
BISYS $200,000 per year. BISYS pays the salary and other compensation earned by
any such individuals as employees of BISYS.
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
31
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
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, 2005 through
January 31, 2006, the expense limits and the cumulative reimbursement that may
potentially be made by the Funds is as follows (Amounts in thousands):
INSTITUTIONAL MICHIGAN
INSTITUTIONAL GOVERNMENT U.S. TREASURY MUNICIPAL MUNICIPAL
PRIME MONEY MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND FUND FUND FUND
----------- ----------- ------------ ------------ ------------ ------------
Institutional Shares 0.54% 0.21% 0.21% 0.21% 0.54% 0.21%
Class A Shares 0.79% NA NA NA 0.79% 0.46%
Class B Shares 1.54% NA NA NA NA NA
Class C Shares 1.54% NA NA NA NA NA
Advisor Shares 1.04% NA NA NA NA NA
Select Shares NA 0.29% 0.29% 0.29% NA 0.29%
Preferred Shares NA 0.36% 0.36% 0.36% NA 0.36%
Trust Shares NA 0.46% 0.46% 0.46% NA 0.46%
Amount subject
to recoupment
expiring on
November 28, 2006. $260 $977 $446 $948 $40 $221
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's
principal distributor. Under the terms of the Plan, the Funds will compensate
the principal distributor from the net assets of the Funds' Class A Shares,
Class B Shares, Class C Shares and Advisor Shares to finance activities intended
to result in the sales of each Funds' shares. The Plan provides that the Funds
may incur distribution services fees up to 0.25% of the average daily net assets
for Class A Shares, up to 1.00% of the average daily net assets for Class B
Shares, up to 0.75% of the average daily net assets for Class C Shares and up to
0.50% of the average daily net assets for Advisor Shares, annually, to
compensate the distributor.
ADMINISTRATIVE SERVICES FEE--The Trust has approved an Administrative Services
Agreement with Fifth Third Funds Distributor, Inc. with respect to Class C
Shares, Select Shares, Preferred Shares and Trust Shares. Under the Agreement,
the Funds may make payments to the distributor and other financial institutions,
which may include affiliates of the advisor, of up to 0.25% of the average daily
net assets for Class C Shares, up to 0.08% of the average daily net assets for
Select Shares, up to 0.15% of the average daily net assets for Preferred Shares
and up to 0.25% of the average daily net assets for Trust Shares in exchange for
certain administrative services fees for shareholders and for the maintenance of
shareholder accounts.
32
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
TRANSFER AND DIVIDEND DISBURSING AGENT--BISYS Fund Services Ohio, Inc. ("BISYS
Ohio"), a wholly owned subsidiary of The BISYS Group, Inc., serves 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 receives a fee of
0.005% from BISYS Ohio computed as a percentage of the average daily net assets
of each Fund. Fifth Third received $301,189 in fees for its services during the
six-month period ended January 31, 2006.Transfer agent fees 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 flat fee for each 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. In addition, there shall be an annual
flat fee for each additional class of shares per Fund and each Fund is subject
to an annual minimum fee. Pursuant to a separate agreement with Fifth Third,
BISYS Ohio performs sub-accounting services on behalf of the Trust, for which it
received $1,415,448 in fees from Fifth Third during the six-month period ended
January 31, 2006, 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 certain 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 period.
33
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
(5) FEDERAL TAX INFORMATION
As of July 31, 2005, the following Funds have net capital loss carryforwards to
offset future net capital gains, if any, to the extent provided by Treasury
regulations (Amounts in thousands):
EXPIRATION YEAR TOTAL
------------------------------------------------------------
2008 2009 2010 2011
------------ --------- ---------- ----------
Government Money Market Fund $ 2 -- -- -- $ 2
U.S. Treasury Money Market Fund 86 $59 -- -- 145
Municipal Money Market Fund -- 2 $ 3 $--^ 5
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. For
the year ended July 31, 2005, the Funds deferred to August 1, 2005 post October
capital losses (Amounts in thousands):
CAPITAL
LOSSES
------------
Prime Money Market Fund $99
Institutional Money Market Fund 1
Institutional Government Money Market Fund --^
- --------------------------------------------------------------
^ Represents fewer than five hundred dollars.
(6) CONCENTRATION OF CREDIT RISK
The Michigan Municipal Money Market Fund invests a substantial portion of its
assets in debt obligations issued by the State of Michigan, and their political
subdivisions, agencies and public authorities. The Fund is more susceptible to
factors adversely affecting issuers of Michigan municipal securities than a fund
that is not concentrated in these issuers to the same extent.
34
This page intentionally left blank.
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
NET REALIZED
NET ASSET AND UNREALIZED LESS
VALUE, NET GAINS/ DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND INSTITUTIONAL SHARES
Year ended 7/31/01 $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.02 -- (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Six months ended 1/31/05+ $1.00 1.74%* $ 897,534 0.54%** 3.43%** 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%
Six months ended 1/31/05+ $1.00 1.62%* $ 414,841 0.79%** 3.17%** 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%
Six months ended 1/31/05+ $1.00 1.23%* $ 917 1.54%** 2.40%** 1.65%**
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
CLASS C SHARES
5/5/02(b) to 7/31/02 $1.00 0.19%* $ 60 1.54%** 0.48%** 1.71%**
Year ended 7/31/03 $1.00 0.32% $ 154 1.14% 0.32% 1.65%
Year ended 7/31/04 $1.00 0.23% $ 2,843 0.98% 0.25% 1.66%
Year ended 7/31/05 $1.00 0.95% $ 1,474 1.46% 0.85% 1.65%
Six months ended 1/31/05+ $1.00 1.23%* $ 1,468 1.54%** 2.44%** 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%
Six months ended 1/31/05+ $1.00 1.49%* $ 610 1.04%** 3.06%** 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%
Six months ended 1/31/05+ $1.00 1.90%* $1,295,297 0.21%** 3.75%** 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%
Six months ended 1/31/05+ $1.00 1.86%* $ 29,403 0.29%** 3.66%** 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%
Six months ended 1/31/05+ $1.00 1.83%* $ 19,981 0.36%** 3.59%** 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%
Six months ended 1/31/05+ $1.00 1.78%* $ 59,871 0.46%** 3.58%** 0.89%**
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.02 --^ (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
NET ASSET ASSETS, TO INVESTMENT TO
VALUE, END OF AVERAGE INCOME AVERAGE
END OF TOTAL PERIOD NET TO AVERAGE NET
PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT
MONEY MARKET FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $1.00 6.03% $ 309,711 0.39% 5.92% 0.63%
1/1/01 to 7/31/01(c) $1.00 2.71%* $ 410,278 0.40%** 4.56%** 0.63%**
Year ended 7/31/02 $1.00 2.05% $ 425,092 0.41% 2.03% 0.64%
Year ended 7/31/03 $1.00 1.07% $ 616,999 0.40% 1.04% 0.65%
Year ended 7/31/04 $1.00 0.86% $ 223,852 0.31% 0.79% 0.66%
Year ended 7/31/05 $1.00 2.17% $ 264,707 0.21% 2.16% 0.66%
Six months ended 1/31/05+ $1.00 1.87%* $ 219,563 0.21%** 3.65%** 0.67%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT
MONEY MARKET FUND SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.65%* $ 5,202 0.30%** 0.82%** 0.75%**
Year ended 7/31/05 $1.00 2.09% $ 2,176 0.30% 1.83% 0.74%
Six months ended 1/31/05+ $1.00 1.82%* $ 3,127 0.29%** 3.57%** 0.75%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET FUND PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.59%* $ 276,373 0.37%** 0.75%** 0.82%**
Year ended 7/31/05 $1.00 2.02% $ 228,555 0.36% 1.96% 0.81%
Six months ended 1/31/05+ $1.00 1.79%* $ 201,085 0.36%** 3.51%** 0.82%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET FUND TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.51%* $ 70,270 0.47%** 0.66%** 0.92%**
Year ended 7/31/05 $1.00 1.92% $ 120,743 0.46% 1.96% 0.91%
Six months ended 1/31/05+ $1.00 1.74%* $ 114,023 0.46%** 3.41%** 0.92%**
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/01 $1.00 5.23% $ 238,816 0.55% 5.12% 0.60%
Year ended 7/31/02 $1.00 1.79% $ 279,059 0.65% 1.75% 0.69%
Year ended 7/31/03 $1.00 0.92% $ 275,107 0.61% 0.84% 0.66%
Year ended 7/31/04 $1.00 0.47% $ 173,865 0.62% 0.47% 0.67%
Year ended 7/31/05 $1.00 1.75% $ 144,028 0.58% 1.70% 0.67%
Six months ended 1/31/05+ $1.00 1.65%* $ 133,970 0.58%** 3.27%** 0.67%**
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/01 $1.00 5.02% $ 248,064 0.75% 4.92% 0.85%
Year ended 7/31/02 $1.00 1.58% $ 270,062 0.85% 1.57% 0.94%
Year ended 7/31/03 $1.00 0.71% $ 177,390 0.81% 0.66% 0.91%
Year ended 7/31/04 $1.00 0.27% $ 110,153 0.82% 0.27% 0.92%
Year ended 7/31/05 $1.00 1.55% $ 95,375 0.79% 1.53% 0.92%
Six months ended 1/31/05+ $1.00 1.56%* $ 82,535 0.77%** 3.08%** 0.92%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/01 $1.00 5.30% $1,058,407 0.39% 5.08% 0.64%
Year ended 7/31/02 $1.00 1.92% $1,143,352 0.41% 1.88% 0.64%
Year ended 7/31/03 $1.00 1.02% $1,644,905 0.40% 0.98% 0.65%
Year ended 7/31/04 $1.00 0.80% $ 399,195 0.30% 0.74% 0.65%
Year ended 7/31/05 $1.00 2.08% $ 295,584 0.21% 2.01% 0.65%
Six months ended 1/31/05+ $1.00 1.83%* $ 337,264 0.21%** 3.61%** 0.65%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.59%* $ 93,233 0.30%** 0.76%** 0.73%**
Year ended 7/31/05 $1.00 2.00% $ 83,171 0.29% 2.01% 0.73%
Six months ended 1/31/05+ $1.00 1.78%* $ 71,752 0.29%** 3.51%** 0.73%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.54%* $1,102,963 0.37%** 0.69%** 0.80%**
Year ended 7/31/05 $1.00 1.93% $ 766,688 0.36% 1.85% 0.80%
Six months ended 1/31/05+ $1.00 1.75%* $ 620,815 0.36%** 3.42%** 0.80%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.46%* $ 165,402 0.47%** 0.58%** 0.90%**
Year ended 7/31/05 $1.00 1.83% $ 118,018 0.46% 1.78% 0.90%
Six months ended 1/31/05+ $1.00 1.70%* $ 150,023 0.46%** 3.35%** 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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
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)
Six months ended 1/31/05+ $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)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
Year ended 7/31/05 $1.00 0.01 -- (0.01)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 --^ --^ --^
Year ended 7/31/05 $1.00 0.01 -- (0.01)
Six months ended 1/31/05+ $1.00 0.01 -- (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES NET EXPENSES
NET ASSET ASSETS, TO INVESTMENT TO
VALUE, END OF AVERAGE INCOME AVERAGE
END OF TOTAL PERIOD NET TO AVERAGE NET
PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a)
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET
FUND INSTITUTIONAL SHARES
Year ended 12/31/00 $1.00 3.73% $ 295,219 0.53% 3.67% 0.62%
1/1/01 to 7/31/01(c) $1.00 1.71%* $ 317,543 0.54%** 2.93%** 0.63%**
Year ended 7/31/02 $1.00 1.41% $ 292,618 0.54% 1.41% 0.65%
Year ended 7/31/03 $1.00 0.88% $ 247,805 0.54% 0.88% 0.67%
Year ended 7/31/04 $1.00 0.59% $ 197,225 0.54% 0.59% 0.67%
Year ended 7/31/05 $1.00 1.45% $ 164,404 0.54% 1.42% 0.67%
Six months ended 1/31/05+ $1.00 1.17%* $ 187,963 0.54%** 2.31%** 0.67%**
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET
FUND CLASS A SHARES
Year ended 12/31/00 $1.00 3.70% $ 160 0.54% 3.44% 0.63%
1/1/01 to 7/31/01(c) $1.00 1.57%* $ 215 0.79%** 2.67%** 0.88%**
Year ended 7/31/02 $1.00 1.25% $ 177 0.70% 1.26% 0.91%
Year ended 7/31/03 $1.00 0.78% $ 19 0.64% 0.90% 0.92%
Year ended 7/31/04 $1.00 0.49% $ 18 0.64% 0.48% 0.91%
Year ended 7/31/05 $1.00 1.30% $ 110 0.69% 1.45% 0.93%
Six months ended 1/31/05+ $1.00 1.09%* $ 106 0.70%** 2.15%** 0.92%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
Year ended 7/31/01 $1.00 3.44% $ 190,268 0.29% 3.33% 0.74%
Year ended 7/31/02 $1.00 1.45% $ 249,280 0.34% 1.43% 0.77%
Year ended 7/31/03 $1.00 0.91% $ 199,439 0.42% 0.92% 0.78%
Year ended 7/31/04 $1.00 0.68% $ 136,302 0.38% 0.67% 0.80%
Year ended 7/31/05 $1.00 1.55% $ 187,829 0.38% 1.55% 0.80%
Six months ended 1/31/05+ $1.00 1.25%* $ 183,399 0.29%** 2.48%** 0.81%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
Year ended 7/31/01 $1.00 3.37% $ 40,981 0.36% 3.26% 0.99%
Year ended 7/31/02 $1.00 1.38% $ 42,004 0.41% 1.35% 1.02%
Year ended 7/31/03 $1.00 0.80% $ 53,079 0.52% 0.80% 1.03%
Year ended 7/31/04 $1.00 0.43% $ 17,590 0.63% 0.42% 1.05%
Year ended 7/31/05 $1.00 1.30% $ 25,516 0.63% 1.30% 1.06%
Six months ended 1/31/05+ $1.00 1.13%* $ 24,459 0.54%** 2.22%** 1.06%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
SELECT SHARES
10/20/03(b) to 7/31/04 $1.00 0.47%* $ 863 0.46%** 0.62%** 0.91%**
Year ended 7/31/05 $1.00 1.47% $ 86 0.46% 0.99% 0.89%
Six months ended 1/31/05+ $1.00 1.21%* $ 3,883 0.32%** 2.66%** 0.88%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
PREFERRED SHARES
10/20/03(b) to 7/31/04 $1.00 0.42%* $ 637 0.53%** 0.55%** 0.98%**
Year ended 7/31/05 $1.00 1.40% $ 36 0.53% 0.97% 0.97%
Six months ended 1/31/05+ $1.00 1.18%* $ 36 0.44%** 2.32%** 0.96%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
TRUST SHARES
10/20/03(b) to 7/31/04 $1.00 0.34%* $ 244 0.63%** 0.44%** 1.06%**
Year ended 7/31/05 $1.00 1.30% $ 8,625 0.63% 1.70% 1.04%
Six months ended 1/31/05+ $1.00 1.13%* $ 5,520 0.54%** 2.22%** 1.06%**
- ------------------------------------------------------------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(A) DURING VARIOUS PERIODS, CERTAIN FEES WERE REDUCED. THE RATIOS SHOWN DO NOT
INCLUDE THESE FEE REDUCTIONS.
(B) REFLECTS DATE OF COMMENCEMENT OF OPERATIONS.
(C) THE FUND CHANGED ITS FISCAL YEAR END TO JULY 31 FROM DECEMBER 31. +
UNAUDITED.
^ AMOUNT IS LESS THAN $0.005.
* NOT ANNUALIZED.
** ANNUALIZED.
See notes to financial statements
40-41 SPREAD
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED):
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
As a shareholder of the Fifth Third Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; 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 August 1, 2005 through January 31,
2006.
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
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
- ------------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,017.40 $2.75 0.54%
Class A Shares 1,000.00 1,016.20 4.01 0.79%
Class B Shares 1,000.00 1,012.30 7.81 1.54%
Class C Shares 1,000.00 1,012.30 7.81 1.54%
Advisor Shares 1,000.00 1,014.90 5.28 1.04%
Institutional Money Market Fund Institutional Shares 1,000.00 1,019.00 1.07 0.21%
Select Shares 1,000.00 1,018.60 1.48 0.29%
Preferred Shares 1,000.00 1,018.30 1.83 0.36%
Trust Shares 1,000.00 1,017.80 2.34 0.46%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,018.70 1.07 0.21%
Select Shares 1,000.00 1,018.20 1.48 0.29%
Preferred Shares 1,000.00 1,017.90 1.83 0.36%
Trust Shares 1,000.00 1,017.40 2.34 0.46%
Government Money Market Fund Institutional Shares 1,000.00 1,016.50 2.95 0.58%
Class A Shares 1,000.00 1,015.60 3.91 0.77%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,018.30 1.07 0.21%
Select Shares 1,000.00 1,017.80 1.47 0.29%
Preferred Shares 1,000.00 1,017.50 1.83 0.36%
Trust Shares 1,000.00 1,017.00 2.34 0.46%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,011.70 2.74 0.54%
Class A Shares 1,000.00 1,010.90 3.55 0.70%
Municipal Money Market Fund Institutional Shares 1,000.00 1,012.50 1.47 0.29%
Class A Shares 1,000.00 1,011.30 2.74 0.54%
Select Shares 1,000.00 1,012.10 1.62 0.32%
Preferred Shares 1,000.00 1,011.80 2.23 0.44%
Trust Shares 1,000.00 1,011.30 2.74 0.54%
* 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.
42
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may however use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/05 1/31/06 8/1/05 - 1/31/06 8/1/05 - 1/31/06
- ------------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,022.48 $2.75 0.54%
Class A Shares 1,000.00 1,021.22 4.02 0.79%
Class B Shares 1,000.00 1,017.44 7.83 1.54%
Class C Shares 1,000.00 1,017.44 7.83 1.54%
Advisor Shares 1,000.00 1,019.96 5.30 1.04%
Institutional Money Market Fund Institutional Shares 1,000.00 1,024.15 1.07 0.21%
Select Shares 1,000.00 1,023.74 1.48 0.29%
Preferred Shares 1,000.00 1,023.39 1.84 0.36%
Trust Shares 1,000.00 1,022.89 2.35 0.46%
Institutional Government Money Institutional Shares 1,000.00 1,024.15 1.07 0.21%
Market Fund Select Shares 1,000.00 1,023.74 1.48 0.29%
Preferred Shares 1,000.00 1,023.39 1.84 0.36%
Trust Shares 1,000.00 1,022.89 2.35 0.46%
Government Money Market Fund Institutional Shares 1,000.00 1,022.28 2.96 0.58%
Class A Shares 1,000.00 1,021.32 3.92 0.77%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,024.15 1.07 0.21%
Select Shares 1,000.00 1,023.74 1.48 0.29%
Preferred Shares 1,000.00 1,023.39 1.84 0.36%
Trust Shares 1,000.00 1,022.89 2.35 0.46%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,022.48 2.75 0.54%
Class A Shares 1,000.00 1,021.68 3.57 0.70%
Municipal Money Market Fund Institutional Shares 1,000.00 1,023.74 1.48 0.29%
Class A Shares 1,000.00 1,022.48 2.75 0.54%
Select Shares 1,000.00 1,023.59 1.63 0.32%
Preferred Shares 1,000.00 1,022.99 2.24 0.44%
Trust Shares 1,000.00 1,022.48 2.75 0.54%
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
43
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENTS.
The Board of Trustees of Fifth Third Funds (the "Trust"), at a meeting held on
September 28 - 29, 2005, formally considered the Trust's investment advisory
agreement with Fifth Third Asset Management, Inc. ("FTAM" or the "Adviser") with
respect to all funds of the Trust and sub-advisory agreement of FTAM with Morgan
Stanley Investment Management Inc. ("MSIM" or the "Sub-Adviser") with respect to
the International Equity Fund. The Board of Trustees also formally considered
the initial approval of a sub-advisory agreement of FTAM with Fort Washington
Investment Advisors, Inc. ("Fort Washington" or, also a "Sub-Adviser") (the
"Sub-Advisers" collectively with the Adviser, the "Advisers") with respect to
the proposed High Yield Bond Fund (collectively, the "Advisory Agreements").
The Board of Trustees (the "Board" or the "Trustees") reviewed extensive
material in connection with their review of the Advisory Agreements, including
data from Lipper, Inc. ("Lipper"), an independent source of mutual fund data,
which provided comparisons with industry averages for comparable funds of
advisory fees, 12b-1 fees, non 12b-1 fees, transfer agency fees, custodian fees,
and total fund expenses. The data reflected FTAM's fee waivers in place, as well
as FTAM's contractual investment advisory fee levels. FTAM also provided the
Board with the results of a two-pronged performance and expense test developed
by FTAM with the data provided from Lipper. The information provided to the
Trustees also included a report from an independent evaluator of brokerage
practices and best execution. The Board received reports from FTAM's Chief
Investment Officer with respect to equity brokerage practices, fund performance,
and expense trends. The Board was assisted in its review by independent legal
counsel, who provided a memorandum detailing the legal standards for review of
the Advisory Agreements. The Board received a detailed presentation by FTAM,
which included a fund-by-fund analysis of performance and profitability.
Detailed presentations were also provided by each Sub-Adviser. The Board
deliberated outside the presence of management and the Advisers.
In their deliberations, each Trustee attributed different weights to various
factors involved in their analysis of whether the Advisory Agreements should be
continued, and no factor alone was considered determinative. The Trustees
determined that the overall arrangements between the Trust and FTAM, between
FTAM and MSIM, and between FTAM and Fort Washington, as provided in the Advisory
Agreements, were fair and reasonable, and that the continuance of the Advisory
Agreements, as well as the initial approval of the Advisory Agreement with
respect to the High Yield Bond Fund, were in the best interests of each Fund of
the Trust and its shareholders.
The matters addressed below were considered and discussed by the Trustees in
reaching their conclusions.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent,
and quality of the services provided to each Fund of the Trust under the
Advisory Agreements. The Trustees took into account information furnished
throughout the year at Board meetings, as well as materials furnished
specifically in connection with the annual review process. The Trustees
considered the background and experience of each Adviser's senior management and
the expertise of the investment personnel of each Adviser responsible for the
day-to-day management of each Fund of the Trust.
The Trustees received information concerning the investment philosophy and
investment processes applied by the Advisers in managing the Trust. The Trustees
also considered information regarding regulatory compliance and compliance with
the investment policies of the Trust. The Trustees evaluated the trading
practices of each Adviser. The Trustees also evaluated the procedures of the
Advisers designed to fulfill the Advisers' fiduciary duty to the Trust with
respect to possible conflicts of interest, including the Advisers' codes of
ethics (regulating the personal trading of its officers and employees).
With respect to the initial approval of Fort Washington, the Trustees first
considered the demand for a high yield product. The Trustees then reviewed
FTAM's sub-adviser selection process, which focused on performance, quality, and
duration. The Trustees then considered Fort Washington's disciplined high yield
investment strategy and philosophy with respect to risk/return alignment. The
Trustees also reviewed Fort Washington's portfolio and credit selection process,
as well as its sell strategy.
With respect to FTAM, the Trustees particularly noted recent staffing
enhancements to the investment teams initiated by the chief investment officer.
Based on their review, the Trustees concluded that, with respect to the quality
and nature of services to be provided by the Advisers, the scope of
responsibilities was typical of those of investment advisers and sub-advisers to
open-end mutual funds generally, and that the quality of the services was very
satisfactory.
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FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
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Investment Performance
The Trustees considered performance results of each Fund in absolute terms and
relative to each Fund's peer group. In conducting their review of performance,
both long- and short-term performance were considered. The Trustees noted that
performance varied considerably and they focused their review of performance on
those funds whose performance compared unfavorably with their respective peers
over the most recent one-year, three-year and five-year periods. The Trustees
noted that the performance of the Small Cap Growth Fund, the Quality Growth
Fund, the Balanced Fund, the Dividend Growth Fund (formerly, the Select Stock
Fund), the Bond Fund, the Short Term Bond Fund, the Municipal Bond Fund, the
Intermediate Municipal Bond Fund, the Michigan Municipal Bond Fund and the
Government Money Market Fund ranked in the fourth and fifth quintile for the
majority of the one-year, three-year and five-year periods. With respect to the
Small Cap Growth Fund and the Quality Growth Fund, the Trustees considered the
enhanced risk controls and volatility measures put in place and their potential
impact on performance. The Trustees considered the recent changes made to the
Select Stock Fund's investment focus. The Trustees also considered the
substantial redemptions in the Municipal Bond Fund and the stability of the
long-term performance of the Balanced Fund and the Intermediate Bond Fund. With
respect to the Dividend Growth Fund, the Bond Fund, the Short Term Bond Fund,
the Municipal Bond Fund, the Intermediate Bond Fund, the Government Bond Fund,
the Municipal Money Market Fund and the Government Money Market Fund, the
Trustees noted FTAM's proposed fee reductions through contractual expense
limitation agreements and the potential impact these expense reductions could
have on performance. With respect to the Intermediate Municipal Bond Fund, the
Trustees noted the contractual expense limitation agreements put in place last
year. The Trustees also considered the supply constraints FTAM faced with
respect to the Michigan Municipal Bond Fund.
With respect to the International Equity Fund, the Trustees noted that while the
Fund had underperformed its benchmark for the one-year period, it had
outperformed its benchmark for the three- and five-year periods.
With respect to the initial approval of Fort Washington, the Trustees considered
Fort Washington's impressive performance record in the high yield bond market.
Based on their review and consideration of FTAM's attempts to address
performance issues, the Trustees concluded that the performance of each of the
Funds of the Trust was satisfactory or better.
Cost of Services and Profits Realized by FTAM and Its Affiliates
The Trustees considered comparable peer group information with respect to the
advisory fees charged by FTAM to each of the Funds of the Trust, taking into
consideration both contractual and actual (i.e., after waiver) fee levels. The
Trustees also reviewed administration, accounting, custody and transfer agency
fees received by FTAM's affiliate, Fifth Third Bank. The Trustees also
considered the fallout benefits to FTAM of soft dollars, based on presentations
to the Board. The Trustees reviewed profitability information provided by FTAM
with respect to investment advisory, administration, accounting, transfer agency
and custody services to each Fund of the Trust. The Trustees recognized that
such data is not typically audited and therefore represented FTAM's own
determination of its revenues, as well as the revenues of its affiliates, from
the contractual services provided to the Trust, less expenses of providing such
services. Expenses included direct and indirect costs and were calculated using
an allocation methodology developed by FTAM. The Trustees also received data
from Lipper on profitability margins for large investment advisers of mutual
funds. The Trustees recognized the difficulty in making comparisons of
profitability to other investment advisers, because comparative information is
affected by numerous factors, including the structure of the particular adviser,
the types of funds it manages, its business mix, and numerous assumptions
regarding allocations. The Trustees also considered the impact that the proposed
expense limitations would have on FTAM's profitability. Based on their review,
the Trustees concluded that the profitability to FTAM under the Advisory
Agreement was not unreasonable in light of the services and benefits provided to
each Fund of the Trust.
With respect to Sub-Adviser profitability, the Trustees noted that sub-advisory
fees are paid by FTAM, rather than directly from the Trust's assets. The Board
also concluded that the these fees were fair and reasonable, in light of the
services and benefits provided to each Fund.
45
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
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Economies of Scale
The Trustees also considered whether fee levels reflected economies of scale and
whether economies of scale would be produced by the growth of the Trust's
assets. The Trustees took into account the $1 billion decrease in the Trust's
assets over the last year. The Trustees noted the expense limitations proposed
by FTAM for the Dividend Growth Fund, the Bond Fund, the Short Term Bond Fund,
the Municipal Bond Fund, the Intermediate Bond Fund, the Government Bond Fund,
the Municipal Money Market Fund and the Government Money Market Fund. The
Trustees also considered the expense limitations previously enacted for the
Balanced Fund and the Intermediate Municipal Bond Fund. The Trustees took into
account the impact of the expense limitations and the resulting decrease in
revenue for FTAM. The Trustees concluded that the asset levels of the Trust were
not currently so large as to warrant formal contractual breakpoints, and that
the contractual expense limitations were a reasonable way to provide the
benefits of economies of scale to shareholders at this time.
46
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ADDRESSES
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Fifth Third Funds Fifth Third Funds
Money Market Mutual Funds 3435 Stelzer Road
Columbus, Ohio 43219
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Investment Advisor Fifth Third Asset Management, Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
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Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
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Administrator, Accountant and Custodian Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
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Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
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Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc.
and Sub-Accountant 3435 Stelzer Road
Columbus, Ohio 43219
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Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
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LOGO: FIFTH THIRD FUNDS
3/06 SAR-MMF-06
ITEM 2. CODE OF ETHICS.
Not applicable - only for annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable - only for annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable - only for annual reports.
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.
Not applicable.
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) Not applicable.
(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
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By (Signature and Title) /s/ Aaron J. Masek
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Aaron J. Masek, Treasurer
Date April 7, 2006
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Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Bryan C. Haft
-------------------------------------------------------
Bryan C. Haft, President
Date April 7, 2006
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By (Signature and Title) /s/ Aaron J. Masek
-------------------------------------------------------
Aaron J. Masek, Treasurer
Date April 7, 2006
--------------