UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5669
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Fifth Third Funds
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(Exact name of registrant as specified in charter)
3435 Stelzer Road, Columbus, OH 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
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Date of fiscal year end: July 31
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Date of reporting period: July 31, 2006
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ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
LOGO: FIFTH THIRD FUNDS
MONEY MARKET MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
July 31, 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
Economic Outlook and
Commentary Section ................... 1
Manager Commentary ................... 3
Schedules of Portfolio
Investments .......................... 5
Notes to Schedules of
Portfolio Investments ................ 23
Statements of Assets
and Liabilities ...................... 24
Statements of Operations ............. 26
Statements of Changes
in Net Assets ........................ 28
Notes to Financial Statements ........ 32
Financial Highlights ................. 38
Report of Independent Registered
Public Accounting Firm ............... 44
Supplemental Information ............. 45
OUR MESSAGE TO YOU
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LOGO: FIFTH THIRD FUNDS
The 12-month period ending July 31, 2006, proved challenging for stock and bond
investors alike. Nonetheless, we are pleased of the performance of the Fifth
Third Funds.
As for the issues faced by the financial markets during the period, two themes--
the relentless pressure of the Federal Reserve Board (the "Fed") to increase
short-term interest rates and the surging price of crude oil--overshadowed all
else.
The Fed took its key fed funds rate from 3.25% at the beginning of the fiscal
year to 5.25% by the end. Perhaps more importantly, the central bank's
chairmanship turned over from Alan Greenspan to Ben Bernanke. Having guided the
Fed quite adeptly since 1987, Mr. Greenspan's legacy seems as though it will be
a hard act to follow for Mr. Bernanke. Shortly after the period's end, the Fed
paused in its tightening cycle, but as Mr. Bernanke's tendencies remain
relatively unknown, many are suspicious that the policymakers may not yet be
done.
Crude oil moved from $60 a barrel at the beginning of the fiscal year to nearly
$75 barrel at its end--an increase of almost 25%. This ruthless rise in the
price of black gold had the arguable effect of causing simultaneous inflationary
and recessionary fears in the economy. A terrible 2005 hurricane season severely
disrupted the U.S. energy infrastructure, although Mother Nature did bail us out
with a warmer winter than normal. As for 2006, the first portion of hurricane
season was relatively quiet, though it's still early.
The combination of an active central bank and rising oil prices applied downward
pressure on the returns of virtually all domestic financial markets. Among those
posting subdued gains were the major domestic stock indices that many of our
stock managers utilize. These broad indices generally recorded advances in the
5% range during the fiscal year. Interestingly, large cap stocks outperformed
small cap equities for the first time in five years. In addition, there was a
lag in growth stocks, which benefit from healthy expectations for economic and
corporate earnings growth rates. The growth stock indices that we utilize
underperformed the value indices by more than 9% for large cap stocks and around
4% for small cap stocks.
Fixed income investments endured even tougher obstacles than stocks. With an
active central bank pushing short-term rates higher--causing prices to move
downward in an inverse fashion--few bonds performed well. Adding to the adverse
conditions was a flattening of the yield curve, which occurs when short-term
rates increase faster than long-term yields. Consider that while the Fed's
overnight rate rose 2% during the period, short-term Treasury yields moved
higher by about 1% and long-term yields moved higher by about 0.6%. Within this
environment, the total returns of the major bond indices that our fund managers
use fell within the 2% range.
Compared to the year-over-year gain of 4.1% in the Consumer Price Index1, such
meager returns signaled a negative real return for bond investors--something
none of us like to see. However, if the Fed plans to hold on further moves in
the coming quarters, we are still optimistic that bond returns could take a turn
for the better over the next 12-months. Further reinforcing our outlook was the
significant degree to which the yield curve flattened, which indicates that the
bond market is already anticipating Fed rate cuts some time in 2007.
More broadly speaking, the fundamentals that drive financial markets over longer
periods of time--fiscal policy, monetary policy, economic growth, corporate
profit growth, bond yields and inflation--ended the year in an overall mixed
fashion. Notable developments include:
o The favorable 15% tax treatment for dividends and long-term capital gains
was extended to 2010, a very positive development.
o The Fed left its fed funds rate at 5.25% at its early August meeting
conducted just after the end of our fiscal year.
1
o Gross Domestic Product1 growth averaged 3.5%--consistent with its long-term
average--during the 12-month period ended July 31, 2006.
o Double-digit gains in quarterly operating profit growth for the S&P 500
Index1 reached 12 consecutive reporting periods in the second quarter of
2006.
o In comparison to the start of the fiscal year longer term Treasury yields
moved higher but ended the fiscal year below 5%, while corporate bond
yields ended the period in a similar spot, relative to Treasuries.
o The 4.1% year-over-year increase in consumer prices was cause for concern,
but the Fed indicated it believes inflationary pressures will cool in the
near term.
Despite the challenges of the fiscal year, our fund managers stayed with their
disciplines to produce competitive returns for you, our shareholders. We thank
you for your continued confidence in the family of Fifth Third Funds.
/s/ Keith Wirtz, CFA
Keith Wirtz, CFA
Chief Investment Officer
/s/ John Augustine, CFA
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
CONSUMER PRICE INDEX is a measure that examines the weighted average of prices
of a basket of consumer goods and services, such as transportation, food and
medical care.
GROSS DOMESTIC PRODUCT is the monetary value of all the goods and services
produced by an economy over a specified period. It includes consumption,
government purchases, investments, and exports minus imports.
THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500 INDEX") 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 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.
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MONEY MARKET FUNDS
Within the 12-month period ended July 31, 2006, yields on the Fifth Third Money
Market Funds steadily increased on an absolute basis. The rise reflected the
ability to reinvest in higher yielding securities as the Federal Reserve's
Federal Open Market Committee ("FOMC") increased the Federal Funds target rate
by 25 basis points (0.25%) at each of its eight meetings during the period,
moving the key rate from 3.25% to 5.25%. Throughout the period, a relatively
neutral duration strategy also aided the Funds.
Consistent with the neutral duration approach, the taxable Money Market Funds
continued to utilize traditional money market securities such as U.S. Treasury
bills, U.S. government agency discount notes and commercial paper. The Funds
also selectively invested in floating rate and fixed coupon extension issues to
capture additional yield. The strategy, which was based on the belief that the
FOMC would remain "measured" in its approach and continue to raise rates through
early 2006, proved effective as the Funds benefited from the frequent
reinvestment in better yielding assets and the inherent hedge provided by the
floating rate securities. Furthermore, heightened liquidity allowed the Funds to
readily cope with volatile cash flows during the period.
Near the period's end, Federal Reserve Board Chairman Ben Bernanke testified to
Congress that the extent and timing of future target rate adjustments would be
dictated by core economic data and inflation indicators, relative to FOMC
forecasts. This fueled speculation that the current rate-hike campaign may be
nearing completion, which increased overall market volatility. Consequently, the
Funds slightly extended duration in anticipation of the eventual completion of
the tightening cycle.
With a continued emphasis on high quality security selection, the Fifth Third
Prime Money Market and the Fifth Third Institutional Money Market Funds
maintained a conservative orientation to achieve principal preservation
objectives.
The municipal money market yield curve was generally flat during the period. At
times, however, it inverted and consequently, daily and weekly floating rate
securities had higher yields than 1-year notes.
Maintaining a high quality orientation, the Fifth Third Michigan Municipal Money
Market Fund1 and the Fifth Third Municipal Money Market Fund continued to be
managed conservatively during the period. In general, the average maturity was
in line or slightly longer than the iMoneyNet peer group, which allowed both
Funds to capitalize on rising interest rates.
Approximately 70% of each Fund is comprised of weekly and daily floater issues,
many of which are supported by letters of credit and other forms of credit
enhancements from banks, financial institutions and corporations. The balance of
the portfolio is comprised of commercial paper, notes and bonds that have a
final maturity within 397 days. The investment mix did not change dramatically
over the 12-month period.+
MATURITY COMPOSITION AS OF JULY 31, 2006
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WEIGHTED AVERAGE MATURITY+
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DAYS DAYS
AS OF 1/31/06 AS OF 7/31/06
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Fifth Third Prime 36 34
Money Market Fund
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Fifth Third Institutional 33 42
Money Market Fund
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Fifth Third Institutional 42 37
Government Money
Market Fund
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Fifth Third Government 42 31
Money Market Fund
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Fifth Third U. S. Treasury 26 16
Money Market Fund
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Fifth Third Michigan Municipal 27 27
Money Market Fund
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Fifth Third Municipal 29 23
Money Market Fund
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+Portfolio composition is subject to change.
Investment Risk Considerations
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An investment in any of the funds is not insured or guaranteed by the FDIC or
any government agency. Although each money market fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by
investing in a money market fund.
1The 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.
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MONEY MARKET MATURITY SCHEDULES
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AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Institutional Michigan
Prime Institutional Government Government U.S. Treasury Municipal Municipal
Money Money Money Money Money Money Money
Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund
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Less than 8 days 50.2% 43.5% 50.5% 26.3% 87.5% 86.0% 88.7%
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8 to 14 Days 4.8% 2.5% 4.4% 15.6% 0.8% 0.0% 0.0%
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15 to 30 Days 19.9% 22.2% 18.1% 41.3% 0.0% 2.1% 1.5%
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31 to 180 Days 21.8% 26.6% 23.5% 14.2% 7.1% 6.6% 5.6%
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181 to 365 Days 3.3% 5.2% 3.5% 2.6% 4.6% 5.3% 4.2%
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366 to 397 Days 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
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+Portfolio composition is subject to change.
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
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PRINCIPAL
AMOUNT VALUE
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CERTIFICATES OF DEPOSIT (7.6%)
Bank of Nova Scotia, 5.34%, 9/29/06 * $ 10,000 $ 10,000
BNP Paribas, 4.93%, 9/5/06 15,000 15,000
Canadian Imperial Bank, 5.02%,
11/27/06 10,000 10,000
Credit Suisse First Boston, 4.81%,
12/5/06 6,000 6,000
Credit Suisse First Boston, 5.10%,
8/30/06 5,000 5,000
Dexia Credit, 5.27%, 11/6/06 * 20,000 19,999
Toronto Dominion Bank, 5.10%,
10/4/06 12,000 11,999
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TOTAL CERTIFICATES OF DEPOSIT 77,998
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COMMERCIAL PAPER (18.2%)
American Honda Finance Corp., 5.37%,
9/12/06 ** 10,000 9,938
Bank of America Corp., 5.27%, 9/7/06 ** 10,000 9,947
Barclays U.S. Funding, 5.18%, 8/24/06 ** 10,000 9,967
Barclays U.S. Funding, 5.40%, 9/21/06 ** 5,000 4,962
Barclays U.S. Funding, 5.41%, 9/25/06 ** 10,000 9,918
Barclays U.S. Funding, 5.12%, 8/16/06 ** 15,000 14,968
Bear Stearns &Co., Inc., 5.31%, 8/7/06 ** 15,000 14,987
Bear Stearns &Co., Inc., 5.45%, 10/26/06 ** 5,000 4,936
BNP Paribas, 5.32%, 8/11/06 ** 10,550 10,534
BNP Paribas, 5.45%, 9/29/06 ** 4,890 4,847
General Electric Capital Corp., 5.27%,
12/29/06 ** 12,000 11,745
Merrill Lynch & Co., 5.30%, 8/8/06 ** 20,000 19,980
Metlife Funding, Inc., 5.17%, 8/22/06 ** 10,000 9,970
Nestle Capital Corp., 5.31%, 11/29/06 ** (c) 5,000 4,914
Rabobank U.S. Financial Corp., 5.27%,
9/29/06 ** 11,000 10,907
Scotiabank, Inc., 5.37%, 8/25/06 ** (c) 15,592 15,536
Societe Generale, 5.18%, 8/16/06 ** 6,700 6,686
Societe Generale, 5.17%, 8/22/06 ** 5,600 5,583
Societe Generale, 5.22%, 10/6/06 ** 5,250 5,201
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TOTAL COMMERCIAL PAPER 185,526
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CORPORATE BONDS (29.0%)
American Express Credit Corp.,
5.50%, 9/12/06 8,823 8,833
Bank of America Corp., 5.25%,
2/1/07 7,000 6,995
Bear Stearns & Co., Inc., 5.31%,
2/15/07 * 10,000 10,009
Bear Stearns & Co., Inc., 5.38%,
8/3/07 * 20,000 20,000
Credit Suisse First Boston, 5.88%,
8/1/06 25,724 25,723
Credit Suisse First Boston, 5.47%,
1/12/07 * 10,000 10,000
Continued
PRINCIPAL
AMOUNT VALUE
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CORPORATE BONDS, CONTINUED
Credit Suisse First Boston, 4.79%,
1/24/07 $ 3,000 $ 2,988
Florida Hurricane Catastrophe, 5.38%,
8/15/07 * 12,000 12,000
Goldman Sachs Group, Inc., 5.39%,
8/1/06 * 20,000 20,000
Goldman Sachs Group, Inc., 5.26%,
5/11/07 * 15,000 15,015
Household Finance Corp., 5.75%,
1/30/07 8,119 8,146
HSBC Finance Corp., 5.32%, 9/6/07 * 10,000 10,000
JP Morgan Chase & Co., 3.13%,
12/11/06 6,500 6,463
Merrill Lynch & Co., 5.60%, 9/18/06 * 7,400 7,402
Merrill Lynch & Co., 5.36%, 2/1/07 3,190 3,197
Merrill Lynch & Co., 5.60%, 7/11/07 * 15,000 15,000
Morgan Stanley, 5.39%, 9/4/07 * 15,000 15,000
National City Bank, 5.36%, 8/14/06 * 15,000 15,000
SunTrust Bank, 5.23%, 5/17/07 * 10,000 10,008
Toyota Motor Credit Corp., Series
EMTN, 5.48%, 12/18/06 * 5,000 5,003
U.S. Bank NA, 2.85%, 11/15/06 5,000 4,973
U.S. Bank NA, 5.33%, 9/29/06 * 3,250 3,250
U.S. Bank NA, Series BKNT, 2.87%,
2/1/07 7,300 7,222
Wachovia Bank NA, 4.85%, 7/30/07 3,500 3,473
Wachovia Corp., 4.95%, 11/1/06 22,000 21,994
Wells Fargo & Co., 5.38%, 8/15/07 * 25,000 25,001
Wells Fargo & Co., 6.88%, 8/8/06 3,000 3,001
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TOTAL CORPORATE BONDS 295,696
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DEMAND NOTES (17.7%)
Arbor Hospice, Inc., 5.40%, 10/1/26,
(LOC: Comerica Bank) * (c) 4,745 4,745
Atlas Industries, Inc., 5.40%, 6/1/10,
(LOC: National City Bank) * 3,920 3,920
Beavercreek Enterprises, 5.40%,
3/2/20, (LOC: National City Bank) * 4,115 4,115
Buckeye Corrugated, Inc., 5.40%,
10/1/17, (LOC: Key Bank) * (c) 5,465 5,465
Bybee Foods LLC, 5.40%, 11/1/26 * 1,600 1,600
Capital One Funding Corp., 5.35%,
10/1/14, (LOC: Bank One) * 2,029 2,029
Capital One Funding Corp., 5.35%,
7/2/18, (LOC: Bank One) * (c) 712 712
Capital One Funding Corp., 5.35%,
10/1/21, (LOC: Bank One) * (c) 1,000 1,000
Capital One Funding Corp., 5.35%,
1/4/27, (LOC: Bank One) * 4,534 4,534
Central Michigan Inns, 5.40%, 4/1/30,
(LOC: Michigan National Bank) * 2,010 2,010
Continued
5
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
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PRINCIPAL
AMOUNT VALUE
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DEMAND NOTES, CONTINUED
CHF-ELON LLC, 5.34%, 6/1/35,
(LOC: Regions Financial Corp) * (c) $ 6,500 $ 6,500
Clare at Water Tower, 5.35%, 5/15/38,
(LOC: Lasalle Bank) * 12,500 12,500
Cornerstone Funding Corp., 5.46%,
12/1/11, (LOC: SunTrust) * 8,080 8,080
Cornerstone Funding Corp., 5.46%,
9/1/25, (LOC: SunTrust) * 5,690 5,690
Harry W. Albright, Jr., 5.50%, 5/1/21,
(LOC: National Australia Bank) * 5,485 5,485
HWP Co., Ltd. Project, 5.40%,
12/3/18, (LOC: National City Bank) * (c) 4,340 4,340
Iowa 80 Group Inc., 5.33%, 6/1/16,
(LOC: Wells Fargo) * 4,000 4,000
Jackson 2000, 5.40%, 6/1/49, (LOC:
KeyBank) * 8,975 8,975
Jefferson Land Development, 5.45%,
10/1/16, (LOC: National City Bank) * (c) 1,030 1,030
Landmark Medical LLC, 5.39%,
1/1/21, (LOC: Bank One) * 7,680 7,680
Lexington Financial Services, 5.44%,
2/1/26, (LOC: LaSalle Bank) * 8,800 8,800
Mount Carmel East Professional,
5.40%, 1/1/14, (LOC: National City) * (c) 1,580 1,580
Mr. K Enterprises, 5.59%, 9/1/16,
(LOC: National Australia Bank) * 6,150 6,150
New Belgium Brewery Co., 5.49%,
7/1/15, (LOC: KeyBank) * 3,195 3,195
Northside Christian Church, 5.39%,
4/1/30, (LOC: Bank One) * 6,720 6,720
PCI Paper Conversions, Inc., 5.40%,
4/1/10, (LOC: KeyBank) * 1,870 1,870
Pittsburgh Technical Institute, 5.40%,
10/1/15, (LOC: National City Bank) * 10,125 10,125
Precision Tool and Die, 5.40%, 3/1/10,
(LOC: National City Bank) * 3,983 3,983
Revenue Bond CTF Series Trust,
5.65%, 6/1/24, (LOC: AIG) * (c) 3,790 3,790
Revenue Bond CTF Series Trust
Castlegate 3, 5.65%, 6/1/17,
(LOC: AIG) * (c) 2,540 2,540
Royal Town Center LLC Project,
5.40%, 10/1/47, (LOC:
Comerica Bank) * (c) 5,095 5,095
Saint Andrew United, 5.35%, 7/1/29,
(LOC: Wachovia Bank) * 13,335 13,335
SDK Cameron LLC, 5.40%, 10/1/35,
(LOC: Comerica Bank) * (c) 3,275 3,275
Second & Main, Ltd., 5.40%, 8/1/11,
(LOC: National City Bank) * 1,750 1,750
Secor Realty, Inc., 5.40%, 4/1/20,
(LOC: National City Bank) * 8,190 8,190
Continued
PRINCIPAL
AMOUNT VALUE
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DEMAND NOTES, CONTINUED
SGS Tool Co., 5.40%, 12/1/12, (LOC:
Bank One) * $ 4,750 $ 4,750
Zeigler Realty LLC, 5.40%, 9/1/26,
(LOC: National City Bank) * 1,920 1,920
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TOTAL DEMAND NOTES 181,478
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MUNICIPAL BONDS (16.2%)
ALASKA (0.3%)
Four Dam Pool Electric Revenue,
5.34%, 7/1/26 * 3,480 3,480
-----------
CALIFORNIA (3.8%)
Riverside County, 5.38%, 11/1/20 * 7,000 7,000
Sacramento County, 5.38%, 7/1/22 * 32,430 32,430
-----------
39,430
-----------
COLORADO (0.2%)
Pueblo Housing Authority Purchasing
Revenue, 5.49%, 12/1/18 * (c) 1,820 1,820
-----------
GEORGIA (1.0%)
Columbus Development Authority,
Industrial Revenue, Litho-Krome
Project, 5.43%, 8/1/22 * 10,125 10,125
-----------
ILLINOIS (1.4%)
Chicago, Series B, 5.39%, 1/1/19 * 13,530 13,530
Kane County School District, Series A,
5.50%, 12/1/06 335 335
-----------
13,865
-----------
IOWA (0.7%)
Dallas County Industrial Development
Revenue, Sioux City Brick & Tile,
5.39%, 9/1/21 * 6,980 6,980
-----------
KENTUCKY (1.5%)
Bardstown Industrial Revenue, 5.50%,
6/1/24 * 7,950 7,950
Webster County Industrial Revenue,
Green River Project, 5.35%, 11/1/24 * 7,700 7,700
-----------
15,650
-----------
MICHIGAN (2.0%)
Commerce Charter Township,
Downtown Development, 5.37%,
10/1/34 * 20,000 20,000
-----------
MINNESOTA (1.0%)
Minneapolis Taxable Pension, 5.34%,
12/1/13 * 9,830 9,830
-----------
Continued
6
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
NEW YORK (1.2%)
Housing Development Corp.,
Multifamily Rental Housing Revenue,
5.30%, 6/1/33 * $ 12,655 $ 12,655
-----------
NORTH CAROLINA (1.5%)
Roman Catholic Diocese, Series A,
5.45%, 6/1/18 * 15,225 15,225
-----------
OHIO (0.4%)
Cleveland-Cuyahoga County, Port
Authority Revenue, CBT Project,
5.40%, 6/1/31 * 4,500 4,500
-----------
PENNSYLVANIA (0.3%)
Allegheny County, Industrial
Development Authority Revenue,
5.40%, 5/1/15 * 2,680 2,680
-----------
UTAH (0.2%)
Housing Corp., Multi Family Revenue,
5.65%, 1/1/22 * 2,061 2,061
-----------
WASHINGTON (0.7%)
Housing Finance Community,
Multifamily Revenue, Monticello Park
Project, 5.36%, 9/1/34 * 3,865 3,865
State Housing Finance Community,
Multi Family Revenue, Eaglepointe
Apartments-B, 5.65%, 7/1/28 * 1,610 1,610
State Housing Finance Community,
Multi Family Revenue,Winterhill
Apartments-B, 5.65%, 7/1/28 * 2,175 2,175
-----------
7,650
-----------
TOTAL MUNICIPAL BONDS 165,951
-----------
U.S. GOVERNMENT AGENCIES (0.5%)
FREDDIE MAC (0.5%)
4.85%, 2/27/07 5,000 4,996
-----------
TOTAL U.S. GOVERNMENT AGENCIES 4,996
-----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (10.3%)
Deutsche Bank, 5.27%, 8/1/06,
(Proceeds at maturity, $45,007,
Collateralized by various U.S.
Government Agency securities,
0.00%-6.00%, 12/12/06-05/25/11,
value $45,901) $ 45,000 $ 45,000
UBS Investment Bank, 5.27%, 8/1/06,
(Proceeds at maturity, $60,427,
Collateralized by various U.S.
Government Agency securities,
5.70%-5.75%, 7/3/25-7/21/25,
value $61,628) 60,418 60,418
-----------
TOTAL REPURCHASE AGREEMENTS 105,418
-----------
MONEY MARKETS (0.2%)
AIM STIT Liquid Assets Portfolio 1,181,119 1,181
Goldman Sachs Financial Square
Prime Obligations Fund 1,169,913 1,170
-----------
TOTAL MONEY MARKETS 2,351
-----------
TOTAL INVESTMENTS (COST $1,019,414) (A) - 99.7% 1,019,414
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 3,043
-----------
NET ASSETS - 100.0% $ 1,022,457
===========
See notes to schedules of portfolio investments
and notes to financial statements.
7
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (15.1%)
Bank of Nova Scotia, 5.34%, 9/29/06* $ 20,000 $ 19,998
Barclays Capital, 4.74%, 1/19/07 10,000 9,986
Barclays Capital, 5.34%, 1/29/07 * 17,500 17,499
Bear Stearns & Co., Inc., 5.36%, 9/19/06 * 20,000 20,000
BNP Paribas, 4.24%, 8/25/06 6,050 6,047
BNP Paribas, 4.93%, 9/5/06 10,000 10,000
Canadian Imperial Bank, 5.02%,
11/27/06 15,000 15,000
Credit Suisse First Boston, 5.10%,
8/30/06 12,000 12,000
Deutsche Bank, 4.11%, 8/25/06 15,000 14,990
Dexia Credit, 5.27%, 11/6/06 * 15,000 15,000
Marshall & Ilsley, 5.44%, 10/25/06 15,000 15,000
Natexis Banques Populaires, 4.75%,
10/26/06 18,000 17,986
National City Bank, 5.34%, 5/11/07 * 5,000 5,001
Royal Bank of Scotland, 5.34%, 12/27/06 * 11,000 10,999
Royal Bank of Scotland, 5.34%, *
2/23/07 10,000 9,999
SunTrust Bank, 5.35%, 8/22/06 * 15,000 15,000
Toronto Dominion Bank, 5.10%,
10/4/06 12,000 12,000
Wachovia Bank NA, 5.46%, 3/30/07 * 8,800 8,800
-----------
TOTAL CERTIFICATES OF DEPOSIT 235,305
-----------
COMMERCIAL PAPER (22.9%)
Abbey National, 5.17%, 8/7/06 ** 15,000 14,987
American Honda Finance Corp.,
5.37%, 9/12/06 ** 15,000 14,907
Bank of America Corp., 5.27%, 9/7/06 ** 11,000 10,941
Barclays U.S. Funding, 5.18%, 8/24/06 ** 5,000 4,984
Barclays U.S. Funding, 5.40%, 9/21/06 ** 10,000 9,925
Barclays U.S. Funding, 5.41%, 9/25/06 ** 15,000 14,877
Bear Stearns & Co., Inc., 5.31%, 8/7/06 ** 15,000 14,987
Bear Stearns & Co., Inc., 5.45%, 10/26/06 ** 10,000 9,871
BNP Paribas, 5.18%, 8/17/06 ** 21,450 21,401
BNP Paribas, 5.45%, 9/29/06 ** 14,000 13,877
California State University, 5.48%,
10/3/06 312 312
California State University, 5.48%,
10/3/06 7,754 7,754
Defpa Bank PLC, 5.46%, 10/13/06 ** (c) 5,000 4,945
General Electric Capital Corp., 5.27%,
12/29/06 ** 10,000 9,788
Merrill Lynch & Co., 5.29%, 8/8/06 ** 20,000 19,979
Metlife Funding, Inc., 5.17%, 8/22/06 ** 5,000 4,985
National City Bank, 5.29%, 8/4/06 ** 15,000 14,993
National Rural Utilities CO-OP, 5.33%,
8/10/06 ** 10,500 10,486
Nestle Capital Corp., 5.31%, 11/29/06 ** (c) 10,000 9,827
Purdue University Research, 5.32%,
11/1/06 6,150 6,150
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER, CONTINUED
Rabobank U.S. Financial Corp., 5.27%,
9/29/06 ** $ 11,000 $ 10,907
Salvation Army, 5.55%, 9/26/06 3,000 3,000
San Jose California International
Airport, 5.30%, 8/3/06 ** 8,124 8,122
Scotiabank, Inc., 5.37%, 8/25/06 ** (c) 25,000 24,911
Societe Generale, 5.30%, 8/1/06 ** 30,000 30,000
Societe Generale, 5.13%, 8/8/06 ** 5,900 5,894
Societe Generale, 5.22%, 10/6/06 ** 14,000 13,867
Toyota Motor Credit Corp., 5.27%,
11/6/06 * 15,000 15,000
UBS Finance, Inc., 5.21%, 8/21/06 ** 4,900 4,886
UBS Finance, Inc., 5.35%, 8/24/06 ** 15,000 14,949
University Of Michigan, 5.32%,
8/2/06 4,660 4,660
-----------
TOTAL COMMERCIAL PAPER 356,172
-----------
CORPORATE BONDS (26.7%)
Abbott Laboratories, 6.40%, 12/1/06 1,000 1,005
American Express Credit Corp.,
5.50%, 9/12/06 7,000 7,008
Bank of America Corp., 7.13%,
9/15/06 8,503 8,529
Bank of America Corp., 5.25%,
2/1/07 6,700 6,685
Bear Stearns & Co., Inc., 5.31%,
2/15/07 * 15,000 15,014
Bear Stearns & Co., Inc., 5.38%,
8/3/07 * 15,000 15,000
Citigroup, Inc., 5.50%, 8/9/06 2,000 2,000
Citigroup, Inc., 5.33%, 6/4/07 * 5,000 5,004
Credit Suisse First Boston, 5.88%,
8/1/06 28,500 28,501
Credit Suisse First Boston, 5.47%,
1/12/07 * 15,000 14,999
Fleetboston Financial Corp., 4.88%,
12/1/06 4,918 4,913
Florida Hurricane Catastrophe, 5.38%,
8/15/07 * 15,000 15,000
General Electric Capital Corp., 5.00%,
2/15/07 5,000 4,981
Goldman Sachs Group, Inc., 5.39%,
8/1/06 * 20,000 20,001
Goldman Sachs Group, Inc., 5.66%,
10/27/06 * 11,050 11,055
Goldman Sachs Group, Inc., 5.26%,
5/11/07 * 6,000 6,006
Healthcare Network Property, 5.35%,
1/1/29 * 16,300 16,300
Household Finance Corp., 5.75%,
1/30/07 19,896 19,963
HSBC Finance Corp., 6.88%, 3/1/07 5,000 5,045
HSBC Finance Corp., 5.32%, 8/6/07 15,000 15,000
Continued
8
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
CORPORATE BONDS, CONTINUED
IBM Corp., 5.49%, 6/28/07 * $ 25,000 $ 25,009
JP Morgan Chase & Co., 5.25%,
5/30/07 3,285 3,274
Lehman Brothers Holdings, 7.50%,
9/1/06 11,110 11,135
Merrill Lynch & Co., 5.60%, 9/18/06 * 7,400 7,402
Merrill Lynch & Co., 4.18%, 1/26/07 9,000 8,969
Merrill Lynch & Co., 5.36%, 2/1/07 3,270 3,274
Merrill Lynch & Co., 5.41%, 6/15/07 * 20,000 20,013
National City Bank Michigan/Illinois,
5.29%, 9/1/06 * 12,000 12,000
National City Bank Of Indiana, 4.88%,
7/20/07 4,920 4,889
Northern Trust Corp., 2.88%,
12/15/06 2,610 2,587
Procter & Gamble Co., 4.75%,
6/15/07 5,000 4,970
SunTrust Bank, 2.50%, 11/1/06 4,365 4,334
SunTrust Bank, 5.23%, 5/17/07 * 2,155 2,156
U.S. Bank, 2.85%, 11/15/06 4,465 4,441
Wachovia Bank NA, 4.85%, 7/30/07 5,000 4,961
Wachovia Corp., 4.95%, 11/1/06 13,897 13,900
Wachovia Corp., 6.63%, 11/15/06 2,500 2,510
Wachovia Corp., 5.28%, 12/4/06 * 5,000 5,000
Wells Fargo & Co., 5.42%, 9/15/06 * 4,000 4,001
Wells Fargo & Co., 5.13%, 2/15/07 13,335 13,320
Wells Fargo & Co., 5.51%, 3/23/07 * 25,000 25,016
Wells Fargo & Co., 5.38%, 8/15/07 * 10,000 10,000
-----------
TOTAL CORPORATE BONDS 415,170
-----------
DEMAND NOTES (4.3%)
Capital One Funding, 5.35%, 8/2/21,
(LOC: Bank One) * 4,338 4,338
Capital One Funding, 5.35%, 4/1/26,
(LOC: Bank One) * 7,451 7,451
CHF-ELON LLC, 5.34%, 6/1/35,
(LOC: Regions Financial Corp) * (c) 7,000 7,000
Cornerstone Funding Corp., 5.39%,
11/15/06, (LOC: SunTrust) * 4,381 4,381
Cornerstone Funding Corp., 5.46%,
1/1/34, (LOC: SunTrust) * 4,156 4,156
Gulf Gate Apartments, 5.39%, 9/1/28,
(LOC: Wells Fargo) * (c) 2,000 2,000
J&S Properties, Inc., 5.40%, 3/1/26 * 3,500 3,500
Metaltec Steel Abrasive, 5.37%,
11/1/34, (LOC: Comerica Bank) * 4,505 4,505
Northport Baptist Church, 5.45%,
9/1/24, (LOC: Regions Financial Corp.) * 3,100 3,100
Park State Properties LLC, 5.40%,
11/1/34, (LOC: US Bank) * 5,500 5,500
Praise Tabernacle Outreach, 5.45%,
6/1/24, (LOC: Comerica Bank) * 3,615 3,615
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
DEMAND NOTES, CONTINUED
Presentation School, Inc., 5.35%,
7/1/30, (LOC: FHLB) * $ 5,700 $ 5,700
Sioux City Brick & Tile, 5.35%,
12/1/36 * (c) 12,250 12,250
-----------
TOTAL DEMAND NOTES 67,496
-----------
MUNICIPAL BONDS (18.7%)
ARKANSAS (2.0%)
Mississippi County Industrial
Development Revenue, 5.40%, 5/1/36 * (c) 14,000 14,000
Northwest Regional Airport Authority,
Airport Revenue, Series A, 5.40%,
2/1/21 * 15,725 15,725
Northwest Regional Airport Authority,
Airport Revenue, Series B, 5.40%,
2/1/08 * 1,235 1,235
-----------
30,960
-----------
CALIFORNIA (1.6%)
Kern Water Authority Revenue, Series
B, 5.39%, 7/1/28 * 4,600 4,600
Sacramento County, 5.38%, 7/1/22 * 5,000 5,000
Sacramento County Housing
Authority, Multifamily Revenue,
Natomas Park Apartments, Series B,
5.37%, 7/15/35 * 1,950 1,950
Saint Michael's Episcopal Day School,
5.44%, 7/1/28 * 1,990 1,990
San Jose Financing Authority Lease
Revenue, Hayes Mansion, Phase B,
5.38%, 7/1/24 * 8,000 8,000
Statewide Community Development
Authority, Multifamily Revenue, Palms
Apartments, 5.35%, 5/15/35 * 2,745 2,745
Statewide Community Development
Authority, Multifamily Revenue,
Series X-T, 5.37%, 10/15/32 * 1,300 1,300
-----------
25,585
-----------
FLORIDA (0.4%)
Housing Finance Corp., Mulitfamily
Revenue, 5.36%, 5/15/36 * 7,000 7,000
-----------
GEORGIA (1.6%)
Athens-Clarke County Industrial
Development Authority Revenue,
Leucadia Inc., Project, 5.39%, 7/1/07 * (c) 3,550 3,550
Augusta Housing Authority
Multifamily Revenue, 5.42%, 5/15/33 * 500 500
Gwinnett County Development
Authority, Hopewell Christian
Academy, 5.37%, 12/1/21 * 6,100 6,100
Municipal Gas Authority Revenue,
5.43%, 2/1/15 * 15,175 15,175
-----------
25,325
-----------
9
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
ILLINOIS (1.6%)
Financial Authority Revenue, Fairview
Obligation, Series D, 5.35%, 8/15/34 * $ 1,150 $ 1,150
Financial Authority Revenue, Fariview
Obligation, Series C, 5.35%, 8/15/34 * 12,350 12,350
Financial Authority Revenue,
Franciscan Community, Series B,
5.35%, 5/1/36 * 12,000 12,000
-----------
25,500
-----------
INDIANA (1.9%)
Health Facilities Financing Authority
Revenue, 5.35%, 4/1/24 * 4,470 4,470
Health Facilities Financing Authority,
Hospital Revenue, Community
Foundation of Northwest Indiana,
Series B, 5.35%, 8/1/25 * 23,875 23,875
Indianapolis Economic Development
Multifamily Housing Revenue, Series B,
5.45%, 11/1/36 * 985 985
-----------
29,330
-----------
IOWA (0.3%)
Finance Authority Retirement
Community Revenue, 5.35%, 12/1/20 * 5,315 5,315
-----------
KENTUCKY (0.3%)
Boone County Industrial Revenue,
5.49%, 6/1/23 * 5,230 5,230
-----------
MARYLAND (1.3%)
State Health & Higher Educational
Facilities Revenue, Series B, 5.35%,
1/1/28 * 19,900 19,900
-----------
MICHIGAN (2.9%)
Canton Charter Township, General
Obligation, 5.49%, 3/1/11 * 1,500 1,500
Commerce Charter Township,
Downtown Development, 5.37%,
10/1/18 * 13,000 13,000
Commerce Charter Township,
Downtown Development, 5.37%,
10/1/34 * 15,000 15,000
Kent County, 5.40%, 3/1/08 * 12,000 12,000
Ypsilanti Charter Township, Taxable
Capital Improvements, Series B, 5.49%,
4/1/19 * 3,340 3,340
-----------
44,840
-----------
MINNESOTA (0.3%)
Plymouth Revenue, Carlson Center
Project, 5.39%, 4/1/12 * 1,100 1,100
St. Paul Port Authority District, 5.46%,
3/1/22 * 3,580 3,580
-----------
4,680
-----------
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MISSOURI (0.6%)
Kansas City Industrial Development
Authority, Taxable Downtown Arena,
5.43%, 4/1/40 * $ 8,925 $ 8,925
-----------
NEBRASKA (0.8%)
Omaha Special Obligation, Riverfront
Redevelopment, 5.50%, 2/1/26 * 11,765 11,765
-----------
NEW MEXICO (0.2%)
Albuquerque Industrial Revenue,
KTECH Corp. Project, 5.39%, 11/1/22 * 3,785 3,785
-----------
NEW YORK (1.0%)
Housing Development Corp.,
Multifamily Rental Housing Revenue,
5.30%, 6/1/33 * 14,900 14,900
-----------
NORTH CAROLINA (0.5%)
Roman Catholic Diocese, Series A,
5.45%, 6/1/18 * 8,140 8,140
-----------
OHIO (0.2%)
Cuyahoga County Ohio Health Care
Revenue, 5.45%, 5/15/12 * 3,125 3,125
-----------
PENNSYLVANIA (0.3%)
Berks County Industrial Development
Authority Revenue, 5.40%, 7/1/16 * (c) 1,500 1,500
Berks County Municipal Authority,
5.45%, 5/15/22 * 2,885 2,885
-----------
4,385
-----------
TEXAS (0.1%)
Alamo Heights Higher Education
Facilities Corp., 5.50%, 4/1/07 * 840 840
-----------
UTAH (0.2%)
Tooele City Industrial Development
Revenue, Series A, 5.39%, 10/1/22 * 2,800 2,800
-----------
VIRGINIA (0.3%)
Arlington County Industrial
Development Authority, 5.33%, 2/1/16 * 5,000 5,000
-----------
WASHINGTON (0.3%)
Housing Finance Community
Multifamily Housing Revenue, Everett,
Series B, 5.36%, 1/15/38 * 2,000 2,000
Housing Finance Community
Multifamily Housing Revenue,
Granite Falls,
Series B, 5.37%, 10/1/27 * 1,190 1,190
Continued
10
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
WASHINGTON, CONTINUED
Housing Finance Community
Multifamily Housing Revenue,
Summer Ridge,
Series B, 5.46%, 12/1/29 * $ 780 $ 780
-----------
3,970
-----------
TOTAL MUNICIPAL BONDS 291,300
-----------
U.S. GOVERNMENT AGENCIES (1.1%)
FREDDIE MAC (1.1%)
4.85%, 2/27/07 10,000 9,992
5.40%, 1/15/42 * 7,793 7,793
-----------
17,785
-----------
TOTAL U.S. GOVERNMENT AGENCIES 17,785
-----------
REPURCHASE AGREEMENTS (10.9%)
Deutsche Bank, 5.27%, 8/1/06,
(Proceeds at maturity, $110,016,
Collateralized by various U.S.
Government Agency securities,
4.75%-6.00%, 1/18/11-4/25/16,
value $112,201) 110,000 110,000
UBS Investment Bank, 5.27%, 8/1/06,
(Proceeds at maturity, $60,398,
Collateralized by various U.S.
Government Agency securities,
0.00%-6.125%, 2/22/07-10/27/25,
value $61,600) 60,389 60,389
-----------
TOTAL REPURCHASE AGREEMENTS 170,389
-----------
Continued
SHARES VALUE
- ----------------------------------------------------------------------------------------
MONEY MARKETS (0.3%)
AIM STIT Liquid Assets Portfolio 2,561,192 $ 2,561
Goldman Sachs Financial Square
Prime Obligations Fund 1,664,799 1,665
-----------
TOTAL MONEY MARKETS 4,226
-----------
TOTAL INVESTMENTS (COST $1,557,843) (A) - 100.0% 1,557,843
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% 390
-----------
NET ASSETS - 100.0% $ 1,558,233
===========
See notes to schedules of portfolio investments
and notes to financial statements.
11
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
GOVERNMENT BONDS (1.2%)
Overseas Private Invest, 5.35%, 12/31/10 * $ 2,000 $ 2,000
Overseas Private Invest, 5.35%, 5/15/21 * 5,000 5,000
-----------
TOTAL GOVERNMENT BONDS 7,000
-----------
U.S. GOVERNMENT AGENCIES (67.1%)
FANNIE MAE (16.1%)
4.00%, 8/8/06 5,000 4,999
2.75%, 8/11/06 11,500 11,493
5.22%, 9/7/06 * 22,100 22,100
5.46%, 9/20/06 ** 5,858 5,816
5.30%, 9/21/06 * 13,325 13,325
5.48%, 9/27/06 ** 2,335 2,316
2.81%, 9/28/06 2,000 1,992
2.13%, 9/29/06 1,000 995
5.41%, 10/4/06 ** 5,000 4,954
4.00%, 10/16/06 500 499
2.63%, 11/15/06 5,000 4,958
3.00%, 12/15/06 6,000 5,952
3.55%, 1/12/07 4,000 3,968
2.63%, 1/19/07 5,000 4,940
2.71%, 1/30/07 5,000 4,935
3.00%, 2/26/07 2,550 2,514
3.00%, 3/2/07 500 493
-----------
96,249
-----------
FEDERAL FARM CREDIT BANK (8.4%)
5.24%, 8/1/06 * 15,000 15,000
2.25%, 9/1/06 1,100 1,097
3.20%, 10/12/06 2,000 1,994
5.27%, 12/22/06 * 10,000 10,000
5.27%, 1/3/07 * 11,075 11,077
1.88%, 1/16/07 811 799
5.33%, 3/29/07 * 10,000 10,003
-----------
49,970
-----------
FEDERAL HOME LOAN BANK (26.9%)
5.18%, 8/4/06 ** 10,200 10,196
5.21%, 8/9/06 ** 10,000 9,989
3.50%, 8/15/06 9,375 9,371
5.25%, 8/15/06 2,000 2,000
5.26%, 8/18/06 ** 4,300 4,289
5.28%, 8/21/06 * 30,000 30,001
2.88%, 9/15/06 5,000 4,986
3.75%, 9/29/06 2,500 2,494
2.38%, 10/2/06 2,300 2,291
2.63%, 10/16/06 5,800 5,767
5.20%, 11/9/06 * 15,000 14,998
5.48%, 11/10/06 ** 8,157 8,034
2.75%, 11/15/06 6,000 5,964
4.88%, 11/15/06 5,505 5,498
3.75%, 11/30/06 2,200 2,187
2.60%, 12/12/06 1,000 991
2.75%, 12/15/06 3,000 2,975
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK, CONTINUED
3.80%, 12/22/06 $ 2,810 $ 2,797
3.50%, 1/18/07 3,300 3,270
4.00%, 1/23/07 2,500 2,483
3.38%, 2/23/07 800 792
2.45%, 3/23/07 2,200 2,158
5.26%, 5/10/07 * 10,000 9,999
3.50%, 5/15/07 2,100 2,072
5.28%, 6/14/07 * 15,000 15,000
-----------
160,602
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (5.5%)
4.99%, 8/1/06 ** 5,000 5,000
5.27%, 8/22/06 ** 4,500 4,486
5.10%, 9/20/06 ** 5,000 4,965
5.10%, 10/17/06 ** 5,000 4,947
5.36%, 10/31/06 ** 3,500 3,454
5.18%, 11/21/06 ** 5,000 4,921
5.28%, 12/1/06 ** 2,350 2,309
2.38%, 2/15/07 2,563 2,523
-----------
32,605
-----------
FREDDIE MAC (10.2%)
2.75%, 8/15/06 4,630 4,626
3.75%, 11/15/06 4,000 3,985
2.50%, 11/28/06 2,250 2,234
2.88%, 12/15/06 10,460 10,372
2.85%, 2/23/07 1,706 1,684
4.88%, 3/15/07 4,000 3,983
5.40%, 1/15/42 * 24,352 24,352
5.40%, 10/15/45 * 9,928 9,928
-----------
61,164
-----------
TOTAL U.S. GOVERNMENT AGENCIES 400,590
-----------
REPURCHASE AGREEMENTS (31.5%)
Deutsche Bank, 5.27%, 8/1/06,
(Proceeds at maturity, $90,013,
Collateralized by various U.S.
Government Agency securities,
0.00%-5.50%, 8/15/06-8/15/09,
value $91,801) 90,000 90,000
UBS Investment Bank, 5.27%, 8/1/06,
(Proceeds at maturity, $98,326,
Collateralized by various U.S.
Government Agency securities,
0.00%-7.10%, 8/30/06-4/28/26,
value $100,280) 98,312 98,312
-----------
TOTAL REPURCHASE AGREEMENTS 188,312
-----------
Continued
12
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
SHARES VALUE
- ----------------------------------------------------------------------------------------
MONEY MARKETS (0.2%)
AIM STIT Government Agency Money
Market Fund 1,123,147 $ 1,123
Goldman Sachs Financial Square
Government Fund 4,125 4
-----------
TOTAL MONEY MARKETS 1,127
-----------
TOTAL INVESTMENTS (COST $597,029) (A) - 100.0% 597,029
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (97)
-----------
NET ASSETS - 100.0% $ 596,932
===========
See notes to schedules of portfolio investments
and notes to financial statements.
13
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (97.4%)
FEDERAL FARM CREDIT BANK (17.6%)
5.24%, 8/1/06 * $ 10,000 $ 10,000
5.17%, 8/11/06 ** 6,670 6,660
4.82%, 8/31/06 ** 2,500 2,490
3.02%, 11/24/06 1,000 993
5.40%, 12/15/06 ** 1,475 1,446
5.27%, 12/22/06 * 5,000 5,000
5.27%, 1/3/07 * 7,150 7,152
3.27%, 1/12/07 1,000 993
4.60%, 1/23/07 500 500
-----------
35,234
-----------
FEDERAL HOME LOAN BANK (79.8%)
5.10%, 8/2/06 ** 10,485 10,484
5.18%, 8/4/06 ** 10,000 9,996
5.19%, 8/7/06 ** 2,148 2,146
5.17%, 8/9/06 ** 14,600 14,583
3.25%, 8/11/06 2,205 2,204
5.19%, 8/11/06 ** 7,838 7,827
3.50%, 8/15/06 7,265 7,261
5.25%, 8/15/06 3,245 3,246
6.38%, 8/15/06 2,265 2,266
5.19%, 8/16/06 ** 13,170 13,142
3.38%, 8/18/06 700 700
5.20%, 8/18/06 ** 10,000 9,976
5.28%, 8/21/06 * 15,000 15,000
5.23%, 8/23/06 ** 15,050 15,002
5.29%, 8/25/06 ** 4,047 4,033
2.95%, 9/14/06 3,545 3,536
2.88%, 9/15/06 1,645 1,640
3.13%, 9/15/06 800 798
3.13%, 9/15/06 1,400 1,397
2.10%, 10/13/06 250 248
2.63%, 10/16/06 905 899
5.20%, 11/9/06 * 5,000 4,999
2.75%, 11/15/06 2,445 2,429
3.00%, 11/15/06 1,000 995
3.13%, 11/15/06 1,410 1,402
4.13%, 11/15/06 1,685 1,678
4.88%, 11/15/06 400 400
4.10%, 11/17/06 300 299
3.20%, 11/29/06 1,000 995
2.75%, 12/15/06 1,350 1,339
3.80%, 1/16/07 500 496
4.63%, 1/17/07 1,440 1,435
3.50%, 1/18/07 510 506
4.00%, 1/23/07 1,500 1,490
2.88%, 2/15/07 300 296
4.88%, 2/15/07 1,455 1,449
3.75%, 3/7/07 1,000 990
4.25%, 4/16/07 2,500 2,478
5.28%, 6/14/07 * 10,000 10,000
-----------
160,060
-----------
TOTAL U.S. GOVERNMENT AGENCIES 195,294
-----------
Continued
SHARES VALUE
- ----------------------------------------------------------------------------------------
MONEY MARKETS (2.5%)
AIM STIT Government Tax
Advantage Fund 7,476 $ 7
Goldman Sachs Financial Square
Federal Fund 4,973,585 4,974
-----------
TOTAL MONEY MARKETS 4,981
-----------
TOTAL INVESTMENTS (COST $200,275) (A) - 99.9% 200,275
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 158
-----------
NET ASSETS - 100.0% $ 200,433
===========
See notes to schedules of portfolio investments
and notes to financial statements.
14
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
TREASURY BILLS (5.0%)
4.54%, 8/3/06 ** $ 10,000 $ 9,998
4.60%, 8/10/06 ** 10,000 9,989
4.73%, 9/14/06 ** 20,000 19,887
4.80%, 9/21/06 ** 10,000 9,933
5.17%, 12/21/06 ** 10,000 9,801
-----------
TOTAL TREASURY BILLS 59,608
-----------
TREASURY NOTES (8.4%)
2.63%, 11/15/06 25,000 24,823
3.50%, 11/15/06 10,000 9,968
2.88%, 11/30/06 10,000 9,933
3.13%, 1/31/07 35,000 34,641
6.25%, 2/15/07 20,000 20,124
-----------
TOTAL TREASURY NOTES 99,489
-----------
REPURCHASE AGREEMENTS (B) (86.7%)
ABN AMRO, 5.24%, 8/1/06 250,000 250,000
Bank of America, 5.24%, 8/1/06 75,000 75,000
Deutsche Bank, 5.24%, 8/1/06 265,000 265,000
Nesbitt Burns, 5.23%, 8/1/06 200,000 200,000
UBS Investment Bank, 5.24%, 8/1/06 238,750 238,750
-----------
TOTAL REPURCHASE AGREEMENTS 1,028,750
-----------
MONEY MARKETS (0.2%)
AIM STIT Money Market Fund 1,437,358 1,437
Goldman Sachs Financial Square
Treasury Obligation 1,224,064 1,224
-----------
TOTAL MONEY MARKETS 2,661
-----------
TOTAL INVESTMENTS (COST $1,190,508) (A) - 100.3% 1,190,508
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (3,439)
-----------
NET ASSETS - 100.0% $ 1,187,069
===========
See notes to schedules of portfolio investments
and notes to financial statements.
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER (2.6%)
MICHIGAN (2.6%)
State Building Authority, 3.50%, 8/3/06 $ 5,000 $ 5,000
-----------
TOTAL COMMERCIAL PAPER 5,000
-----------
MUNICIPAL BONDS (96.9%)
ALASKA (0.4%)
Valdez Marine Terminal Revenue,
Exxon Pipeline Co., Project A,
3.57%, 12/1/33 * 700 700
-----------
MICHIGAN (94.0%)
Ann Arbor Economic Development
Corp., Limited Obligation Revenue,
Glacier Hills, Inc. Project,
3.64%, 11/1/25* 2,250 2,250
Building Authority, 3.65%, 10/15/40 * (c) 13,500 13,500
Building Authority Revenue, Series III,
3.00%, 10/15/06 2,500 2,500
Detroit Sewage Disposal Revenue,
3.68%, 7/1/33 * 100 100
Detroit Waterfront Reclamation,
Series C, 3.68%, 5/1/09 * 4,400 4,400
Dexter Community School District, GO,
6.25%, 5/1/07 1,730 1,762
Farmington Hills Economic
Development Corp., Marketing
Displays, (AMT), 3.75%, 9/1/08 * 470 470
Ferndale School District, GO, 5.50%,
5/1/22 200 203
Genesee County Economic Development
Corp., Rawcar Group, (AMT),
3.77%, 5/1/20 * 2,005 2,005
Holland School District, GO, 4.00%,
5/1/07 150 150
Hospital Finance Authority Revenue,
Balmoral, Inc., 3.25%, 9/1/16 * (c) 550 550
Housing Development Authority, Hunt
Club Apartments, 3.68%, 7/15/35 * 475 475
Housing Development Authority,
Limited Obligation Revenue, Shoal
Creek, 3.65%, 10/1/07 * 5,080 5,080
Housing Development Authority, Ltd.,
3.71%, 6/1/25 * 5,050 5,050
Housing Development Authority, Ltd.,
3.70%, 1/1/29 * (c) 3,800 3,800
Housing Development Authority, Ltd.,
Series A, 3.70%, 9/1/35 * 6,900 6,900
Jackson County Hospital Financial
Authority, Hospital Revenue, W.A.
Foote Memorial Hospital-B,
3.66%, 6/1/26 * 2,950 2,950
Continued
15
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Livonia Economic Development Corp.,
3.65%, 8/1/15 * (c) $ 500 $ 500
Livonia Water Supply & Wastewater
Systems, 2.50%, 11/1/06 200 200
Mancelona Area Water Sewer Authority,
Water Supply Systems Revenue,
3.72%, 4/1/21 * 940 940
Marquette City Hospital Finance,
Marquette General Hospital Group,
3.71%, 7/1/09 * 1,755 1,755
Marquette County Economic
Development Corp., Pioneer
Labs, Inc., Series A, (AMT),
3.81%, 6/1/12 * 725 725
Municipal Bond Authority Revenue,
Series A, 4.50%, 8/18/06 2,000 2,000
Municipal Bond Authority Revenue,
Series B-1, 4.00%, 8/18/06 1,000 1,001
Municipal Bond Authority Revenue,
Series C, 4.25%, 8/18/06 1,000 1,001
Muskegon County Wastewater
Management System No. 1, (AMT),
5.00%, 7/1/07 1,000 1,012
Oakland County Economic Development
Corp., Limited Obligation Revenue,
Moody Family, Ltd., (AMT),
3.85%, 9/1/12 * (c) 1,835 1,835
Oakland County Economic Development
Corp., North America, (AMT),
3.80%, 7/1/18 * (c) 1,240 1,240
Public Power Agency Revenue,
Series A, 5.00%, 1/1/07 2,000 2,013
Romeo Community School District
Building & Site, GO, 5.00%, 5/1/07 125 126
Saginaw School District Building &
Site, GO, 4.00%, 5/1/07 1,210 1,214
Southfield Economic Development,
Lawrence Technical University
Project, 3.72%, 10/1/31 * 2,850 2,850
St. Clair Shores Economic Development
Corp., Borman's, Inc., (AMT),
4.10%, 10/15/06 * 180 180
State Building Authority Revenue,
3.65%, 10/15/16 * 3,900 3,900
State Comprehensive Transportation,
Series B, 5.00%, 5/15/07 400 404
State Environmental Protection Program,
GO, 5.50%, 11/1/06 385 387
State Hospital Finance Authority
Revenue, Henry Ford Health Center,
3.63%, 11/15/40 * 3,000 3,000
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
State Hospital Financial Authority
Revenue, Holland Community Hospital,
Series B, 3.66%, 1/1/34 * $ 1,400 $ 1,400
State, Series A, GO, 4.50%, 9/29/06 3,000 3,006
Strategic Fund Limited Obligation
Revenue, 3.66%, 5/1/32 * 5,000 5,001
Strategic Fund, Automatic Spring,
(AMT), 3.81%, 9/1/10 * 1,000 1,000
Strategic Fund, Banks Hardwoods, Inc.,
(AMT), 3.78%, 7/1/12 * (c) 692 692
Strategic Fund, Biewer of Lansing,
(AMT), 3.78%, 5/1/19 * (c) 885 885
Strategic Fund, Brazing Concepts Co.,
(AMT), 3.88%, 9/1/18 * (c) 1,500 1,500
Strategic Fund, Donnelly Corp.,
Series A, (AMT), 3.79%, 3/1/10 * (c) 4,500 4,500
Strategic Fund, Donnelly Corp.,
Series B, (AMT), 3.70%, 4/1/08 * (c) 2,500 2,500
Strategic Fund, Emerson Schools,
3.71%, 7/1/24 * (c) 2,555 2,555
Strategic Fund, Environmental Powder
Co., (AMT), 3.80%, 7/1/22 * 120 120
Strategic Fund, Fitz-Land LLC, (AMT),
3.77%, 8/1/25 * 2,365 2,365
Strategic Fund, Fleet Engineers Project,
(AMT), 3.80%, 9/1/09 * 400 400
Strategic Fund, Forest City
Technologies, (AMT), 3.77%, 9/1/15 * 1,400 1,400
Strategic Fund, Frederick Wolfgang,
(AMT), 3.80%, 9/1/26 * 820 820
Strategic Fund, Glastender, Inc., (AMT),
3.88%, 9/1/08 * (c) 715 715
Strategic Fund, John Dekker & Sons,
(AMT), 3.80%, 1/1/18 * 355 355
Strategic Fund, Joy Properties LLC,
3.85%, 5/1/17 * (c) 580 580
Strategic Fund, Kaspari Investments
LLC, (AMT), 3.88%, 6/1/09 * (c) 100 100
Strategic Fund, Kazoo, Inc., (AMT),
3.65%, 3/15/07 * 95 95
Strategic Fund, Kundinger, (AMT),
3.80%, 2/1/29 * (c) 1,130 1,130
Strategic Fund, Limited Obligation
Revenue, All American Property LLC,
(AMT), 4.03%, 12/1/18 * 800 800
Strategic Fund, Limited Obligation
Revenue, Aspen Reality LLC. Project,
(AMT), 4.03%, 7/1/13 * (c) 100 100
Strategic Fund, Limited Obligation
Revenue, Besser International Sales Co.
Project, (AMT), 3.88%, 9/1/11 * (c) 300 300
Continued
16
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, BK Real Estate Project,
(AMT), 3.77%, 12/1/23 * $ 1,990 $ 1,990
Strategic Fund, Limited Obligation
Revenue, Bowers Manufacturing Co.
(AMT), 3.88%, 9/1/10 * (c) 500 500
Strategic Fund, Limited Obligation
Revenue, Cayman Chemical Company
Project, (AMT), 3.77%, 6/1/28 * (c) 830 830
Strategic Fund, Limited Obligation
Revenue, Creative Foam Corp. (AMT),
3.88%, 11/1/11 * (c) 2,400 2,400
Strategic Fund, Limited Obligation
Revenue, CTD Real Estate Co. (AMT),
4.03%, 11/1/12 * (c) 100 100
Strategic Fund, Limited Obligation
Revenue, Delta Containers, Inc. (AMT),
3.88%, 3/1/11 * 1,800 1,800
Strategic Fund, Limited Obligation
Revenue, Detroit Symphony Project,
Series B, 3.68%, 6/1/31 * 2,400 2,400
Strategic Fund, Limited Obligation
Revenue, Eclipse Mold (AMT),
4.03%, 12/1/12 * (c) 400 400
Strategic Fund, Limited Obligation
Revenue, Flyer Fund Leasing LLC
Project, 3.88%, 11/1/17 * (c) 1,300 1,300
Strategic Fund, Limited Obligation
Revenue, Gebara Management Co.
LLC Project, 3.88%, 11/1/13 * (c) 300 300
Strategic Fund, Limited Obligation
Revenue, Harbor Industries, Inc.
Project, (AMT), 3.81%, 4/1/25 * 400 400
Strategic Fund, Limited Obligation
Revenue, Heartland Goodwill Project,
3.66%, 9/1/25 * 600 600
Strategic Fund, Limited Obligation
Revenue, Henry Ford Museum Village
Project, 3.68%, 12/1/33 * 1,895 1,895
Strategic Fund, Limited Obligation
Revenue, Jet Enterprises, (AMT),
3.78%, 3/1/11 * (c) 500 500
Strategic Fund, Limited Obligation
Revenue, Lakeport Realty Project,
4.03%, 6/1/07 * (c) 200 200
Strategic Fund, Limited Obligation
Revenue, Landscape Forms, Inc. Project,
(AMT), 3.88%, 5/1/14 * (c) 200 200
Strategic Fund, Limited Obligation
Revenue, Lansing Saint Vincent Home
Project, 3.66%, 8/1/28 * 1,500 1,500
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Limited Obligation
Revenue, Metal Technologies Project,
(AMT), 3.82%, 7/1/19 * (c) $ 2,000 $ 2,000
Strategic Fund, Limited Obligation
Revenue, Midwest Kellering Co.
Project, (AMT), 3.88%, 6/1/19 * (c) 1,500 1,500
Strategic Fund, Limited Obligation
Revenue, Milan Screw Products Inc.
Project, (AMT), 3.88%, 9/1/16 * 400 400
Strategic Fund, Limited Obligation
Revenue, MOT LLC Project,
3.66%, 12/1/34 * 1,300 1,300
Strategic Fund, Limited Obligation
Revenue, Non-Ferrous Cast Alloys
Project, (AMT), 3.88%, 3/1/19 * 435 435
Strategic Fund, Limited Obligation
Revenue, Oak Industrial Drive
Project, (AMT), 3.80%, 11/1/33 * (c) 950 950
Strategic Fund, Limited Obligation
Revenue, Orchestra Place Renewal
Project, 3.66%, 9/1/22 * 2,000 2,000
Strategic Fund, Limited Obligation
Revenue, Peachwood Center,
3.66%, 6/1/16 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Production Engineering
Project, (AMT), 3.76%, 6/1/13 * (c) 1,400 1,400
Strategic Fund, Limited Obligation
Revenue, Profile Industrial Packaging,
(AMT), 3.81%, 9/1/09 * 225 225
Strategic Fund, Limited Obligation
Revenue, R. L. Adams Plastics, Inc.,
(AMT), 3.80%, 5/1/23 * (c) 1,600 1,600
Strategic Fund, Limited Obligation
Revenue, RA Rink LLC Project, (AMT),
4.03%, 11/1/17 * (c) 1,040 1,040
Strategic Fund, Limited Obligation
Revenue, RL Enterprises LLC (AMT),
4.03%, 12/1/09 * (c) 400 400
Strategic Fund, Limited Obligation
Revenue, Van Andel Research Institute
Project, 3.68%, 11/1/27 * 500 500
Strategic Fund, Limited Obligation
Revenue, Whitehall Industries, Inc.
Project, (AMT), 3.76%, 3/1/25 * 100 100
Strategic Fund, Limited Obligation
Revenue, Whitehall Industries, Inc.,
(AMT), 3.88%, 11/1/20 * (c) 700 700
Strategic Fund, Lions Bear Lake Camp
Project, 3.77%, 8/1/32 * (c) 1,070 1,070
Strategic Fund, MacArthur, (AMT),
3.80%, 6/1/15 * 2,000 2,000
Continued
17
MICHIGAN MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Maco Steel, Inc.,
(AMT), 3.80%, 3/1/24 * $ 1,510 $ 1,510
Strategic Fund, Merrill Group, (AMT),
3.82%, 10/1/22 * (c) 1,250 1,250
Strategic Fund, Middleville Tool & Die
Project, (AMT), 3.88%, 9/1/13 * (c) 2,100 2,100
Strategic Fund, Patten Monument,
(AMT), 3.80%, 11/1/26 * 635 635
Strategic Fund, Phipps Emmett
Association, (AMT), 3.81%, 12/1/23 * 2,000 2,000
Strategic Fund, Proto-Techniques,
(AMT), 3.80%, 12/1/26 * (c) 2,355 2,355
Strategic Fund, Protomark Corp.
Project, (AMT), 3.88%, 8/1/17 * (c) 400 400
Strategic Fund, SFI Acquisition, Inc.,
(AMT), 3.80%, 2/1/28 * (c) 900 900
Strategic Fund, Stegner East Investments
LLC Project, (AMT), 3.80%, 6/1/29 * (c) 3,040 3,040
Strategic Fund, Thompson Family
Holdings, (AMT), 3.87%, 7/1/28 * 860 860
Strategic Fund, Trenton Forging Co.,
(AMT), 3.76%, 6/1/20 * (c) 990 990
Strategic Fund, Trio Tool Co., (AMT),
3.72%, 7/1/24 * 1,325 1,325
Strategic Fund, Ultra Tech Printing Co.,
(AMT), 3.80%, 8/1/23 * 1,105 1,105
Strategic Fund, Waltec American
Forging, (AMT), 3.88%, 10/1/14 * (c) 1,415 1,415
Strategic Fund, Warren Screw Products,
Inc., (AMT), 3.88%, 9/1/16 * (c) 400 400
Strategic Fund, Wright K Technology,
Inc., (AMT), 3.87%, 5/1/17 * (c) 595 595
Strategic Fund, YMCA Detroit Project,
3.69%, 5/1/31 * 1,000 1,000
University of Michigan Hospital
Revenue, 3.67%, 12/1/35 * 2,400 2,400
University of Michigan Hospital
Revenue, Series A, 3.65%, 12/1/19 * 3,500 3,500
University of Michigan, Medical Service
Plan, Series A-1, 3.65%, 12/1/21 * 3,825 3,825
Warren Economic Development Corp.,
Limited Obligation, CMX Corp., (AMT),
3.65%, 3/15/07 * 275 275
Wayne Charter County, Airport
Revenue, Detroit Metro County,
(AMT), 3.70%, 12/1/16 * 500 500
Wayne Charter County, Airport
Revenue, Detroit Metro County,
Series D, (AMT), 5.25%, 12/1/06 1,000 1,006
-----------
180,068
-----------
Continued
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
PUERTO RICO (2.5%)
Industrial Medical & Environmental
Pollution Control, Facilities Financing
Authority, Abbott Laboratories,
3.55%, 3/1/23 * (c) $ 4,695 $ 4,695
-----------
TOTAL MUNICIPAL BONDS 185,463
-----------
MONEY MARKETS (0.2%)
AIM Tax Free Money Market Fund 20,536 21
Dreyfus Tax Exempt Money
Market Fund 6,265 6
Goldman Sachs Financial Tax Free
Money Market Fund 310,898 310
Merrill Lynch Institutional
Tax Exempt Fund 10,697 11
-----------
TOTAL MONEY MARKETS 348
-----------
TOTAL INVESTMENTS (COST $190,811) (A) - 99.7% 190,811
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 570
-----------
NET ASSETS - 100.0% $ 191,381
===========
See notes to schedules of portfolio investments
and notes to financial statements.
18
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER (1.8%)
MICHIGAN (1.8%)
State Building Authority, 3.50%, 8/3/06 $ 5,000 $ 5,000
-----------
TOTAL COMMERCIAL PAPER 5,000
-----------
MUNICIPAL BONDS (97.9%)
ARIZONA (0.5%)
Revenue Bond Certificate Series Trust,
3.89%, 12/1/34 * (c) 1,500 1,500
-----------
ARKANSAS (0.7%)
Sheridan Industrial Development,
3.68%, 8/1/14 * (c) 2,000 2,000
-----------
COLORADO (8.0%)
Arapahoe County Water and
Wastewater Authority Revenue,
Series A, 3.67%, 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%, 12/1/06 2,500 2,500
Central Platte Valley Metropolitan
District, 3.45%, 12/1/31 * 500 500
Colorado Springs, Revenue, National
Strength and Condition, 3.75%,
11/1/22 * 660 660
Commerce City Northern, 3.69%, 12/1/28 * 1,500 1,500
Denver City & County Airport
Revenue, Series C, 3.70%, 11/15/25 * 2,400 2,400
Denver City & County Airport
Revenue, Series F, 3.70%, 11/15/25 * 2,000 2,000
Durango, Revenue, Health and Human
Services, 3.75%, 12/15/14 * 640 640
Parker, Automotive Metropolitan
District, 3.45%, 12/1/34 * 2,000 2,000
Pinery West Metropolitan District
No. 2, 3.25%, 11/1/06 4,200 4,200
Revenue Bond Certificate Series Trust,
3.89%, 12/1/34 * (c) 1,000 1,000
-----------
22,400
-----------
FLORIDA (3.1%)
Alachua County Health Facilities
Authority Revenue, Shands Teaching
Hospital and Clinic, 3.69%, 12/1/32 * 2,000 2,000
Alachua County Health Facilities
Authority Revenue, Shands Teaching
Hospital, Series A, 3.69%, 12/1/12 * 4,950 4,950
Collier County Housing Finance
Authority Multi Family Revenue,
3.74%, 9/1/47 * 500 500
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
FLORIDA, CONTINUED
Hillsborough County Housing Finance
Authority Multi Family Revenue,
3.70%, 12/15/38 * $ 1,340 $ 1,340
-----------
8,790
-----------
GEORGIA (1.3%)
Emanuel County Development
Authority Revenue, 3.74%, 4/1/12 * 1,475 1,475
Kennesaw Development Authority,
3.69%, 4/1/37 * 1,500 1,500
Macon-Bibb County Hospital
Authority Revenue, 3.69%, 5/1/30 * 700 700
-----------
3,675
-----------
IDAHO (0.3%)
Ada & Canyon Counties School
District, 4.00%, 8/15/06 250 250
Power County, Pollution Control
Revenue, FMC Corp. Project,
3.65%, 12/1/10 * 500 500
-----------
750
-----------
ILLINOIS (13.5%)
Chicago O'Hare International Airport
Revenue, 5.00%, 1/1/07 330 332
Chicago Park District, Series B, 4.50%,
1/1/07 200 201
Chicago Solid Waste Disposal Facility
Revenue, 3.80%, 12/1/15 * (c) 1,000 1,000
Crystal Lake Industrial Development
Revenue, 3.84%, 6/1/36 * 1,500 1,500
Development Finance Authority
Revenue, McCormick Theological,
Series B, 3.66%, 6/1/35 * 2,000 2,000
Development Finance Authority,
WTVP Channel 47, Series A, Lake
County Family YMCA, 3.68%, 9/1/22 * 3,650 3,650
Development Financial Authority
Pollution Control Revenue, Diamond
Star Motors Project, 3.70%, 12/1/08 * (c) 1,700 1,700
Development Financial Authority
Revenue, World Communications, Inc.,
3.72%, 8/1/15 * 875 875
Educational Facilities Authority, Field
Museum of Natural History,
3.72%, 11/1/25 * (c) 4,900 4,900
Educational Facilities Authority, Lake
County Family YMCA, 3.72%, 11/1/30 * 1,450 1,450
Financial Authority Revenue, (AMT),
3.76%, 8/1/24 * 1,700 1,700
Financial Authority Revenue, (AMT),
3.76%, 6/1/25 * 1,300 1,300
Financial Authority Revenue, (AMT),
3.70%, 6/1/26 * 4,000 4,000
Continued
19
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
ILLINOIS, CONTINUED
Health Facilities Authority, 3.67%,
1/1/16 * (c) $ 2,000 $ 2,000
Health Facilities Authority Revenue,
3.67%, 8/15/33 * 1,500 1,500
Lake Villa, Allendale Association,
3.72%, 10/1/26 * (c) 4,640 4,640
Peoria, Peoria Academy, 3.83%,
9/1/26 * (c) 4,300 4,300
Rock Island County Airport Authority
Revenue, 3.68%, 12/1/18 * 1,235 1,235
-----------
38,283
-----------
INDIANA (5.8%)
Advanced Funding Program, Series A,
4.50%, 2/1/07 1,000 1,006
Bond Bank Revenue, 4.00%, 8/1/06 500 500
Crawfordsville, Economic
Development, Autumn Woods
Apartments, Series A, 3.66%, 1/1/30 * 3,349 3,349
Dekko Foundation Educational
Facilities Revenue, Series I,
3.83%, 4/1/21 * (c) 605 605
Development Financial Authority,
Mental Health, 3.75%, 12/1/22 * (c) 3,400 3,400
Development Financial Authority,
Regional Council of Carpenters,
3.77%, 9/1/31 * (c) 1,195 1,195
Indianapolis, State Development
Finance Authority, Lutheran
Educational Facilities Project,
3.67%, 10/1/17 * (c) 2,475 2,475
Ivy Tech Community College, Series K,
4.00%, 7/1/07 330 331
Saint Joseph County, Economic
Development Revenue, 3.75%, 6/1/22 * 2,300 2,300
State Development Finance Authority
Environmental Revenue, (AMT),
3.74%, 9/1/31 * 1,000 1,000
-----------
16,161
-----------
IOWA (1.8%)
Higher Education Authority,
3.68%, 4/1/33 * 1,300 1,300
Higher Education Authority Revenue,
3.68%, 7/1/25 * 1,700 1,700
Sergeant Bluff Industrial Development
Revenue, 3.76%, 3/1/16 * (c) 2,100 2,100
-----------
5,100
-----------
KANSAS (0.3%)
Development Finance Authority,
Shalom Revenue, 3.68%, 11/15/28 * 750 750
-----------
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
KENTUCKY (1.8%)
Breckinridge County Lease Program,
3.68%, 2/1/32 * $ 5,152 $ 5,152
-----------
MARYLAND (1.0%)
Baltimore County Economic
Development Revenue, Garrison
Forest School Project, 3.69%, 6/1/26 * 2,700 2,700
-----------
MICHIGAN (13.6%)
Detroit Waterfront Reclamation,
Series C, 3.68%, 5/1/09 * 2,000 2,000
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A,
3.68%, 3/1/14 * 5,610 5,610
Hospital Financial Authority Revenue,
Crittenton Hospital, Series A,
3.68%, 3/1/30 * 2,000 2,000
Jackson County Economic
Development Corp., Limited
Obligation Revenue, Vista Grande Villa,
Series A, 3.67%, 11/1/31 * 300 300
Livonia Economic Development
Corp., 3.65%, 8/1/15 * (c) 720 720
Macomb County Hospital Finance
Authority Mount Clemens, Series A,
3.70%, 10/1/20 * 12,000 12,000
Muskegon County Wastewater
Management System No. 1, (AMT),
5.00%, 7/1/07 1,110 1,123
State Hospital Finance Authority
Revenue, 3.67%, 5/1/36 * 2,185 2,185
Strategic Fund, Limited Obligation
Revenue, Detroit Symphony Project,
Series B, 3.68%, 6/1/31 * 5,755 5,755
Strategic Fund, Limited Obligation
Revenue, Heartland Goodwill Project,
3.66%, 9/1/25 * 1,000 1,000
Strategic Fund, Limited Obligation
Revenue, Lansing Saint Vincent Home
Project, 3.66%, 8/1/28 * 5,145 5,145
University of Michigan Hospital
Revenue, Series A, 3.65%, 12/1/19 * 300 300
-----------
38,138
-----------
MINNESOTA (4.1%)
Blue Earth Industrial Development
Revenue, (AMT), 3.85%, 6/1/21 * 1,440 1,440
Lauderdale, Children's Home Society,
3.73%, 12/1/30 * 415 415
Little Canada Industrial Development
Revenue, (AMT), 3.85%, 6/1/16 * (c) 420 420
Minneapolis, Minnehaha Academy
Project, 3.73%, 5/1/26 * 3,600 3,600
Continued
20
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
MINNESOTA, CONTINUED
Roseville Health Care Facilities
Revenue, Presbyterian Homes Project,
3.73%, 10/1/29 * $ 2,630 $ 2,630
Saint Paul Housing & Redevelopment
Authority, Multifamily Housing
Revenue, (AMT), 3.76%, 1/1/27 * 400 400
State Higher Education Facilities
Authority Revenue, 3.68%, 10/1/30 * 1,335 1,335
State Higher Education Facilities,
Series 5-M1, 3.68%, 10/1/32 * 1,190 1,190
-----------
11,430
-----------
MISSOURI (1.9%)
Health & Educational Facilities
Authority, Saint Francis Medical Center,
Series A, 3.68%, 6/1/26 * 385 385
Sikeston Industrial Development
Authority Revenue, 3.85%, 7/1/09 * (c) 765 765
State Health & Education Facilities
Authority, Drury College,
3.73%, 8/15/24 * 1,000 1,000
State Health & Educational Facilities
Authority, Drury University,
3.73%, 8/15/28 * 1,645 1,645
State Health & Educational Facilities
Authority, Missouri Valley College,
3.73%, 10/1/31 * 1,600 1,600
-----------
5,395
-----------
NEVADA (4.7%)
Clark County Industrial Development
Revenue, 3.72%, 11/1/20 * 13,000 13,000
Douglas County, Solid Waste Disposal,
3.00%, 12/1/06 100 100
-----------
13,100
-----------
NEW HAMPSHIRE (0.9%)
New Hampshire Business Finance
Authority Industrial Development
Revenue, 3.68%, 6/1/23 * (c) 2,600 2,600
-----------
NEW MEXICO (1.7%)
Farmington Pollution Control Revenue,
Series C, 3.69%, 9/1/24 * 4,700 4,700
-----------
NEW YORK (2.1%)
New York City Housing Development
Corp. Multi Family Revenue,
3.70%, 6/1/36 * 2,300 2,300
State Environmental Facilities Corp.
Solid Waste Disposal Revenue,
Series B, 3.70%, 5/1/19 * 3,100 3,100
State Housing Finance Authority
Revenue, (AMT), 3.68%, 11/1/36 * 500 500
-----------
5,900
-----------
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
NORTH CAROLINA (1.7%)
Capital Facilities Finance Agency
Exempt Revenue, 3.74%, 7/1/34 * $ 1,300 $ 1,300
Halifax County Industrial Facilities &
Pollution Financing Authority Revenue,
3.74%, 12/1/19 * 2,400 2,400
Lee County Industrial Facilities &
Pollution Control Funding Authority
Revenue, Trion, Inc. Project,
3.76%, 11/1/11 * (c) 1,000 1,000
-----------
4,700
-----------
NORTH DAKOTA (0.2%)
Hebron Industrial Development
Revenue, 3.75%, 3/1/15 * (c) 440 440
-----------
OHIO (5.1%)
Anderson Township, 4.75%, 6/14/07 2,490 2,511
Columbiana County, Revenue, East
Liverpool, 3.72%, 10/1/23 * 1,175 1,175
Coshocton County, Hospital Revenue,
3.83%, 3/1/14 * (c) 180 180
Greene County, 3.50%, 8/16/06 1,000 1,000
Independence, Economic
Development Revenue, 3.72%, 12/1/16 * 2,550 2,550
Montgomery County, Economic
Development, Benjamin & Marian Arts
Center, Series A, 3.72%, 4/1/11 * 1,160 1,160
Montgomery County, Economic
Development, The Dayton Art Institute,
3.72%, 5/1/26 * 1,400 1,400
Montgomery County, Health Care
Facilities, Community Blood Center,
3.83%, 12/1/20 * 1,580 1,580
State Higher Education Facilities
Revenue, Ashland University Project,
3.69%, 9/1/24 * 1,825 1,825
Summit County, Industrial
Development Revenue, SSP Fittings
Corporate Project, 3.98%, 9/1/11 * 825 825
-----------
14,206
-----------
OREGON (1.7%)
Portland Special Obligation Revenue,
(AMT), 3.69%, 3/1/36 * 2,000 2,000
State Economic Development
Revenue, 3.74%, 12/1/25 * 2,400 2,400
State Economic Development
Revenue, (AMT), 3.75%, 11/1/16 * (c) 500 500
-----------
4,900
-----------
Continued
21
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- ----------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
PENNSYLVANIA (7.4%)
Allegheny County Hospital
Development Authority Revenue,
3.78%, 5/1/07 $ 2,000 $ 2,000
Allegheny County Port Authority,
4.50%, 6/29/07 1,300 1,308
Allegheny County, Industrial
Development Authority Revenue,
Sacred Heart High School,
3.70%, 6/1/22 * 1,200 1,200
Allegheny County, Industrial
Development Authority Revenue,
Sewickley Academy, Series A,
3.71%, 11/1/22 * 1,100 1,100
Berks County Industrial Development
Authority Revenue, (AMT), 3.74%,
12/1/11 * 1,415 1,415
Higher Educational Facilities Authority
Revenue, 3.19%, 11/1/06 1,600 1,600
North Wales Water Authority, Rural
Water Projects Revenue, 4.00%,
10/1/06 3,000 3,005
Philadelphia Authority for Industrial
Development Revenues,
Newcourtland Elderly Services
Project, 3.68%, 3/1/27 * 6,800 6,800
Somerset County Hospital Authority
Revenue, 3.40%, 3/1/22 * 1,000 1,000
Westmoreland County Industrial
Development Authority,
3.68%, 12/1/24 * 1,500 1,500
-----------
20,928
-----------
SOUTH CAROLINA (0.2%)
Jobs Economic Development
Authority Industrial Revenue,
3.78%, 2/1/26 * 500 500
-----------
SOUTH DAKOTA (3.4%)
Lawrence County Solid Waste
Disposal Revenue, Series A,
3.76%, 7/1/32 * 9,600 9,600
-----------
TENNESSEE (0.9%)
Greenville Industrial Development
Revenue, 3.68%, 5/1/13 * (c) 500 500
Lewisburg Industrial Development
Board, Solid Waste Disposal, (AMT),
3.74%, 7/1/33 * 2,000 2,000
-----------
2,500
-----------
Continued
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
TEXAS (2.7%)
Lufkin Health Facilities Development
Corp., 3.68%, 2/15/35 * $ 900 $ 900
Mansfield Industrial Development
Corp. Revenue, 3.72%, 11/1/26 * 2,600 2,600
Tax & Revenue Anticipation Notes,
4.50%, 8/31/06 2,000 2,002
Waco Industrial Development Corp.
Economic Development Revenue,
3.85%, 6/1/14 * 2,100 2,100
-----------
7,602
-----------
UTAH (1.0%)
Housing Corp., Single Family
Mortgage Revenue, Series A, Class I,
(AMT), 2.35%, 7/1/07 380 372
Salt Lake County Training Facilities
Revenue, Community Foundation
Disabled Project, 3.75%, 8/1/30 * 1,540 1,540
Weber County Industrial Revenue,
Enable Industries, Inc., 3.75%, 12/1/15 * 1,000 1,000
-----------
2,912
-----------
VIRGINIA (1.6%)
Brunswick County Industrial
Development Authority, 3.88%, 1/1/17 * 1,000 1,000
King George County Industrial
Development Authority Revenue,
3.69%, 12/1/24 * 900 900
Suffolk Redevelopment & Housing
Authority, Multi-Family Housing
Revenue, North Beach Apartments,
3.74%, 9/1/19 * (c) 1,400 1,400
Wythe County Industrial Development
Authority Revenue, (AMT),
3.79%, 12/1/14 * (c) 1,230 1,230
-----------
4,530
-----------
WASHINGTON (3.7%)
Bremerton Revenue, 3.68%, 12/1/28 * 3,000 3,000
Health Care Facilities Authority
Revenue, Inland Northwest Blood,
3.68%, 8/1/26 * 4,055 4,055
Kitsap County Industrial Development
Corp., 3.75%, 6/1/31 * 1,000 1,000
Pierce County School District, 3.50%,
12/1/06 250 250
Seattle Housing Authority Revenue,
3.71%, 12/1/36 * 400 400
Yakama Indian Nation Confederated
Tribes & Bands, 3.71%, 6/1/07 * (c) 1,300 1,300
Yakima County Public Corp., 3.81%,
1/1/18 * 400 400
-----------
10,405
-----------
Continued
22
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- ----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------
MUNICIPAL BONDS, CONTINUED
WISCONSIN (1.2%)
Manitowoc Industrial Development
Revenue, (AMT), 3.84%, 6/1/31 * $ 2,300 $ 2,300
Oconomowoc Community
Development Authority Multifamily
Revenue, 3.71%, 12/1/44 * 1,200 1,200
-----------
3,500
-----------
TOTAL MUNICIPAL BONDS 275,247
-----------
MONEY MARKETS (0.1%)
AIM Tax Free Money Market Fund 1,507 2
Dreyfus Tax Exempt Money
Market Fund 37,655 38
Goldman Sachs Financial Tax Free
Money Market Fund 287,977 287
-----------
TOTAL MONEY MARKETS 327
-----------
TOTAL INVESTMENTS (COST $280,574) (A) - 99.8% 280,574
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 429
-----------
NET ASSETS - 100.0% $ 281,003
===========
See notes to schedules of portfolio investments
and notes to financial statements.
NOTES TO SCHEDULES OF
PORTFOLIO INVESTMENTS
* Variable rate security. Rate presented represents the rate in effect at
July 31, 2006. Maturity date reflects the actual maturity date.
** Effective yield at purchase.
(a) Also represents cost for federal income tax purposes.
(b) Collateralized by various U.S. Treasury and Government Agency securities,
0.00%-9.25%, 08/03/06-02/15/29.
Collateral
Security Proceeds Value
ABN AMRO $250,036 $255,001
Bank of America 75,011 76,501
Deutsche Bank 265,039 270,301
Nesbitt Burns 200,029 204,000
UBS Investment Bank 238,785 243,527
(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 financial statements.
23
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2006
(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 and value $ 913,996 $1,387,454 $408,717
Repurchase agreements, at cost and value 105,418 170,389 188,312
---------- ---------- --------
Total Investments 1,019,414 1,557,843 597,029
Cash 1 -- 1
Interest receivable 5,595 8,972 2,083
Receivable from Advisor and affiliates 14 28 12
Prepaid expenses and other assets 39 23 16
---------- ---------- --------
Total Assets 1,025,063 1,566,866 599,141
---------- ---------- --------
LIABILITIES:
Payable to Custodian -- 5 --
Distributions payable 1,951 3,386 2,019
Payable for investments purchased -- 4,889 --
Accrued expenses and other payables:
Payable to Advisor and affiliates 376 155 69
Distribution and administrative services fees 98 39 50
Other 181 159 71
---------- ---------- --------
Total Liabilities 2,606 8,633 2,209
---------- ---------- --------
NET ASSETS:
Paid-in Capital $1,022,463 $1,558,205 $596,924
Accumulated net investment income 86 29 8
Accumulated net realized loss from
investment transactions (92) (1) --^
---------- ---------- --------
Net Assets $1,022,457 $1,558,233 $596,932
========== ========== ========
Net Assets:
Institutional Shares $ 563,551 $1,263,609 $304,332
Class A Shares 455,183 NA NA
Class B Shares 1,216 NA NA
Class C Shares 879 NA NA
Advisor Shares 1,628 NA NA
Select Shares NA 35,579 6,337
Preferred Shares NA 98,263 190,260
Trust Shares NA 160,782 96,003
---------- ---------- --------
Total $1,022,457 $1,558,233 $596,932
========== ========== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 563,596 1,263,583 304,329
Class A Shares 455,184 NA NA
Class B Shares 1,218 NA NA
Class C Shares 880 NA NA
Advisor Shares 1,628 NA NA
Select Shares NA 35,579 6,337
Preferred Shares NA 98,262 190,259
Trust Shares NA 160,782 96,002
---------- ---------- --------
Total 1,022,506 1,558,206 596,927
========== ========== ========
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 and value $200,275 $ 161,758 $190,811 $280,574
Repurchase agreements, at cost and value -- 1,028,750 -- --
-------- ---------- -------- --------
Total Investments 200,275 1,190,508 190,811 280,574
Cash -- 1 -- --
Interest receivable 820 1,003 983 1,111
Receivable from Advisor and affiliates 1 7 2 8
Prepaid expenses and other assets 18 18 5 20
-------- ---------- -------- --------
Total Assets 201,114 1,191,537 191,801 281,713
-------- ---------- -------- --------
LIABILITIES:
Payable to Custodian -- -- -- --^
Distributions payable 567 4,101 328 642
Payable for investments purchased -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 76 113 67 31
Distribution and administrative services fees 9 104 --^ 12
Other 29 150 25 25
-------- ---------- -------- --------
Total Liabilities 681 4,468 420 710
-------- ---------- -------- --------
NET ASSETS:
Paid-in Capital $200,371 $1,187,210 $191,391 $281,006
Accumulated net investment income 64 1 (10) --^
Accumulated net realized loss from
investment transactions (2) (142) -- (3)
-------- ---------- -------- --------
Net Assets $200,433 $1,187,069 $191,381 $281,003
======== ========== ======== ========
Net Assets:
Institutional Shares $127,537 $ 386,757 $189,695 $214,995
Class A Shares 72,896 NA 1,686 27,027
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 61,992 NA 10,551
Preferred Shares NA 625,196 NA 2,402
Trust Shares NA 113,124 NA 26,028
-------- ---------- -------- --------
Total $200,433 $1,187,069 $191,381 $281,003
======== ========== ======== ========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 127,558 386,689 189,653 214,990
Class A Shares 72,936 NA 1,687 27,039
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA 61,989 NA 10,551
Preferred Shares NA 625,171 NA 2,402
Trust Shares NA 113,121 NA 26,028
-------- ---------- -------- --------
Total 200,494 1,186,970 191,340 281,010
======== ========== ======== ========
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
24-25 spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL
MONEY MARKET MONEY MARKET GOVERNMENT MONEY
FUND FUND MARKET FUND
-------------- -------------- --------------------
INVESTMENT INCOME:
Interest income $56,328 $60,749 $27,376
Dividend income 216 230 81
------- ------- -------
Total Investment Income 56,544 60,979 27,457
------- ------- -------
EXPENSES:
Investment advisory fees 5,163 5,458 2,506
Administrative fees 2,271 2,390 1,096
Distribution services fees-Class A Shares 1,074 NA NA
Distribution services fees-Class B Shares 10 NA NA
Distribution services fees-Class C Shares 9 NA NA
Distribution services fees-Advisor Shares 4 NA NA
Administrative services fees-Class C Shares 3 NA NA
Administrative services fees-Select Shares NA 24 3
Administrative services fees-Preferred Shares NA 50 347
Administrative services fees-Trust Shares NA 135 293
Accounting fees 259 259 156
Transfer and dividend disbursing agent fees 275 274 137
Custody fees 63 72 42
Trustees' fees and expenses 55 61 25
Other expenses 429 393 213
------- ------- -------
Total expenses 9,615 9,116 4,818
------- ------- -------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (1,523) (6,040) (2,840)
Transfer and dividend disbursing agent fees waived (12) (9) (9)
Distribution services-Class A Shares waived -- -- --
------- ------- -------
Net expenses 8,080 3,067 1,969
------- ------- -------
Net Investment Income 48,464 57,912 25,488
------- ------- -------
Net realized gains (losses) on investment transactions 7 -- --
------- ------- -------
Change in net assets resulting from operations $48,471 $57,912 $25,488
======= ======= =======
GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
-------------- -------------- -------------------- ------------
INVESTMENT INCOME:
Interest income $9,311 $50,296 $5,581 $6,818
Dividend income 346 179 94 111
------ ------- ------ ------
Total Investment Income 9,657 50,475 5,675 6,929
------ ------- ------ ------
EXPENSES:
Investment advisory fees 899 4,753 716 1,104
Administrative fees 393 2,078 313 398
Distribution services fees-Class A Shares 211 NA 1 59
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 57 NA 2
Administrative services fees-Preferred Shares NA 948 NA 1
Administrative services fees-Trust Shares NA 298 NA 24
Accounting fees 59 228 52 96
Transfer and dividend disbursing agent fees 58 241 41 63
Custody fees 22 76 22 32
Trustees' fees and expenses 8 45 7 9
Other expenses 82 338 53 82
------ ------- ------ ------
Total expenses 1,732 9,062 1,205 1,870
------ ------- ------ ------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (209) (5,251) (237) (1,235)
Transfer and dividend disbursing agent fees waived -- (9) -- (2)
Distribution services-Class A Shares waived (69) -- --^ --
------ ------- ------ ------
Net expenses 1,454 3,802 968 633
------ ------- ------ ------
Net Investment Income 8,203 46,673 4,707 6,296
------ ------- ------ ------
Net realized gains (losses) on investment transactions --^ 2 --^ 2
------ ------- ------ ------
Change in net assets resulting from operations $8,203 $46,675 $4,707 $6,298
====== ======= ====== ======
^ Amount is less than five hundred dollars.
See notes to financial statements
26-27 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
INSTITUTIONAL
PRIME INSTITUTIONAL GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
----------------------- ----------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005 2006 2005
---------- ---------- ---------- ---------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 48,464 $ 26,689 $ 57,912 $ 26,251 $ 25,488 $ 12,286
Net realized gains (losses) from
investment transactions 7 (99) -- (1) -- --^
---------- ---------- ---------- ---------- --------- ---------
Change in net assets resulting
from operations 48,471 26,590 57,912 26,250 25,488 12,286
---------- ---------- ---------- ---------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (32,705) (19,802) (53,024) (24,724) (11,623) (4,760)
Class A Shares (15,668) (6,827) NA NA NA NA
Class B Shares (27) (43) NA NA NA NA
Class C Shares (35) (16) NA NA NA NA
Advisor Shares (29) (1) NA NA NA NA
Select Shares NA NA (1,225) (380) (153) (94)
Preferred Shares NA NA (1,409) (726) (9,199) (5,145)
Trust Shares NA NA (2,254) (421) (4,513) (2,287)
---------- ---------- ---------- ---------- --------- ---------
Change in net assets from
shareholder distributions (48,464) (26,689) (57,912) (26,251) (25,488) (12,286)
---------- ---------- ---------- ---------- --------- ---------
Change in net assets from fund
share transactions (403,532) (30,495) 408,824 41,738 (19,249) 40,484
---------- ---------- ---------- ---------- --------- ---------
Change in net assets (403,525) (30,594) 408,824 41,737 (19,249) 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 $1,022,457 $1,425,982 $1,558,233 $1,149,409 $ 596,932 $ 616,181
========== ========== ========== ========== ========= =========
Accumulated Net Investment Income/(Loss) $ 86 $ 85 $ 29 $ 29 $ 8 $ 7
========== ========== ========== ========== ========= =========
GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
FUND FUND
----------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
--------- --------- ---------- ----------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 8,203 $ 4,496 $ 46,673 $ 27,542
Net realized gains (losses) from
investment transactions --^ --^ 2 13
--------- --------- ---------- ----------
Change in net assets resulting
from operations 8,203 4,496 46,675 27,555
--------- --------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (5,198) (2,887) (15,029) (7,279)
Class A Shares (2,969) (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 (2,824) (1,723)
Preferred Shares NA NA (24,294) (16,072)
Trust Shares NA NA (4,526) (2,468)
--------- --------- ---------- ----------
Change in net assets from
shareholder distributions (8,167) (4,468) (46,673) (27,542)
--------- --------- ---------- ----------
Change in net assets from fund
share transactions (39,006) (44,643) (76,394) (497,345)
--------- --------- ---------- ----------
Change in net assets (38,970) (44,615) (76,392) (497,332)
NET ASSETS:
Beginning of period 239,403 284,018 1,263,461 1,760,793
--------- --------- ---------- ----------
End of period $ 200,433 $ 239,403 $1,187,069 $1,263,461
========= ========= ========== ==========
Accumulated Net Investment Income/(Loss) $ 64 $ 28 $ 1 $ --^
========= ========= ========== ==========
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
FUND FUND
------------------------ ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 4,707 $ 2,648 $ 6,296 $ 2,835
Net realized gains (losses) from
investment transactions --^ --^ 2 --
--------- --------- --------- ---------
Change in net assets resulting
from operations 4,707 2,648 6,298 2,835
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Shares (4,693) (2,647) (5,331) (2,449)
Class A Shares (14) (1) (622) (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 (64) (4)
Preferred Shares NA NA (14) (2)
Trust Shares NA NA (265) (62)
--------- --------- --------- ---------
Change in net assets from
shareholder distributions (4,707) (2,648) (6,296) (2,835)
--------- --------- --------- ---------
Change in net assets from fund
share transactions 26,867 (32,729) 58,909 66,456
--------- --------- --------- ---------
Change in net assets 26,867 (32,729) 58,911 66,456
NET ASSETS:
Beginning of period 164,514 197,243 222,092 155,636
--------- --------- --------- ---------
End of period $ 191,381 $ 164,514 $ 281,003 $ 222,092
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ (10) $ (10) $ --^ $ --^
========= ========= ========= =========
^ Amount is less than five hundred dollars.
See notes to financial statements
28-29 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL GOVERNMENT
MONEY MARKET FUND MONEY MARKET MONEY MARKET
FUND FUND FUND
----------------------- ----------------------- ---------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005 2006 2005
---------- ---------- ---------- ---------- ---------- ----------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 1,629,794 2,228,288 5,892,873 4,778,153 1,832,832 1,880,786
Dividends reinvested 4,695 2,262 26,298 11,952 2,029 564
Shares redeemed (2,029,677) (2,336,368) (5,732,822) (4,762,451) (1,795,236) (1,840,494)
---------- ---------- ---------- ---------- ---------- ----------
Total Institutional Shares (395,188) (105,818) 186,349 27,654 39,625 40,856
---------- ---------- ---------- ---------- ---------- ----------
Class A Shares
Shares issued 651,274 413,667 NA NA NA NA
Dividends reinvested 16,625 6,049 NA NA NA NA
Shares redeemed (677,111) (342,721) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Class A Shares (9,212) 76,995 NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Class B Shares
Shares issued 830 32,582 NA NA NA NA
Dividends reinvested 20 9 NA NA NA NA
Shares redeemed (973) (32,901) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Class B Shares (123) (310) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Class C Shares
Shares issued 1,418 398 NA NA NA NA
Dividends reinvested 36 14 NA NA NA NA
Shares redeemed (2,049) (1,780) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Class C Shares (595) (1,368) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Advisor Shares
Shares issued 3,359 210 NA NA NA NA
Dividends reinvested 29 --^ NA NA NA NA
Shares redeemed (1,802) (204) NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Total Advisor Shares 1,586 6 NA NA NA NA
---------- ---------- ---------- ---------- ---------- ----------
Select Shares
Shares issued NA NA 119,127 66,974 16,859 70,606
Dividends reinvested NA NA 1,084 261 -- 9
Shares redeemed NA NA (108,556) (56,578) (12,698) (73,641)
---------- ---------- ---------- ---------- ---------- ----------
Total Select Shares NA NA 11,655 10,657 4,161 (3,026)
---------- ---------- ---------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA 295,319 267,927 1,001,430 1,094,119
Dividends reinvested NA NA 1,297 538 5,130 1,965
Shares redeemed NA NA (221,531) (272,494) (1,044,855) (1,143,902)
---------- ---------- ---------- ---------- ---------- ----------
Total Preferred Shares NA NA 75,085 (4,029) (38,295) (47,818)
---------- ---------- ---------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA 392,172 119,393 263,920 288,065
Dividends reinvested NA NA 981 343 490 322
Shares redeemed NA NA (257,418) (112,280) (289,150) (237,914)
---------- ---------- ---------- ---------- ---------- ----------
Total Trust Shares NA NA 135,735 7,456 (24,740) 50,473
---------- ---------- ---------- ---------- ---------- ----------
GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
FUND FUND
-------------------- ------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
-------- -------- ---------- ----------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 281,380 302,031 1,004,979 1,181,212
Dividends reinvested 56 25 1,415 337
Shares redeemed (297,949) (331,912) (915,221) (1,285,163)
-------- -------- ---------- ----------
Total Institutional Shares (16,513) (29,856) 91,173 (103,614)
-------- -------- ---------- ----------
Class A Shares
Shares issued 83,238 95,093 NA NA
Dividends reinvested 2,860 1,290 NA NA
Shares redeemed (108,591) (111,171) NA NA
-------- -------- ---------- ----------
Total Class A Shares (22,493) (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 516,145 721,963
Dividends reinvested NA NA -- --^
Shares redeemed NA NA (537,325) (732,025)
-------- -------- ---------- ----------
Total Select Shares NA NA (21,180) (10,062)
-------- -------- ---------- ----------
Preferred Shares
Shares issued NA NA 3,762,766 3,142,600
Dividends reinvested NA NA 5,206 2,434
Shares redeemed NA NA (3,909,465) (3,481,318)
-------- -------- ---------- ----------
Total Preferred Shares NA NA (141,493) (336,284)
-------- -------- ---------- ----------
Trust Shares
Shares issued NA NA 398,521 498,703
Dividends reinvested NA NA 7 14
Shares redeemed NA NA (403,422) (546,101)
-------- -------- ---------- ----------
Total Trust Shares NA NA (4,894) (47,384)
-------- -------- ---------- ----------
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
FUND FUND
--------------------- --------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
-------- -------- -------- --------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 436,822 431,915 735,196 548,248
Dividends reinvested 1,729 940 729 179
Shares redeemed (413,261) (465,676) (708,761) (496,898)
-------- -------- -------- --------
Total Institutional Shares 25,290 (32,821) 27,164 51,529
-------- -------- -------- --------
Class A Shares
Shares issued 11,463 118 128,704 128,126
Dividends reinvested 13 --^ 629 281
Shares redeemed (9,899) (26) (127,822) (120,484)
-------- -------- -------- --------
Total Class A Shares 1,577 92 1,511 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 23,889 960
Dividends reinvested NA NA 1 3
Shares redeemed NA NA (13,425) (1,740)
-------- -------- -------- --------
Total Select Shares NA NA 10,465 (777)
-------- -------- -------- --------
Preferred Shares
Shares issued NA NA 2,371 6
Dividends reinvested NA NA 1 2
Shares redeemed NA NA (6) (609)
-------- -------- -------- --------
Total Preferred Shares NA NA 2,366 (601)
-------- -------- -------- --------
Trust Shares
Shares issued NA NA 56,164 31,202
Dividends reinvested NA NA 59 12
Shares redeemed NA NA (38,820) (22,833)
-------- -------- -------- --------
Total Trust Shares NA NA 17,403 8,381
-------- -------- -------- --------
* Share transactions are at a par value of $1.00 per share.
^ Amount is less than five hundred shares.
See notes to financial statements
30-31 sperad
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2006
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Fifth Third Funds (the "Trust") are registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company established as a Massachusetts business trust. At July 31, 2006, the
Trust consisted of thirty-six separate investment portfolios, one of which is
not currently offered and not included in these financial statements.
The accompanying financial statements and notes relate only to the following
Funds (individually a "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
each 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 Trust'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
32
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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 Fund of the Trust are allocated
among the respective Funds based on their 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.
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax return to determine whether the tax positions
are "more-likely-than-not" of being sustained by the applicable tax authority.
Tax positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year.Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Management has not completed
their analysis on whether the adoption of FIN 48 will have an impact to the
financial statements.
(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
$1,624,847 in fees from Fifth Third during the year ended July 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.
33
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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 subject to adjustment annually by the percentage
increase in consumer prices for services as measured by the United States
Consumer Price Index. 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 Funds. Under the terms of this agreement, to the extent that ordinary
operating expenses incurred by a Fund in any fiscal year exceed the expense
limit for the Fund, such excess amount will be the liability of the Advisor and
Administrator. If the operating expenses are less than the expense limit for the
Fund, the Advisor and Administrator shall be entitled to reimbursement of the
fees waived or reduced to the extent that the operating expenses and the amount
reimbursed do not exceed such expense 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 July 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 reimbursement
expiring on November 28, 2006. $1,011 $4,275 $1,920 $3,468 $162 $931
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.
34
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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 $594,531 in fees for its services during the
year ended July 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 $2,827,627 in fees from Fifth Third during the year ended July 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 year.
35
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
(5) FEDERAL TAX INFORMATION
The tax character of distributions paid during the fiscal year ended July 31,
2006 was as follows (Amounts in thousands):
ORDINARY TOTAL
INCOME TAX EXEMPT DISTRIBUTIONS
DISTRIBUTIONS DISTRIBUTIONS PAID
------------- ------------- -------------
Prime Money Market Fund $47,592 $ -- $47,592
Institutional Money Market Fund 54,536 -- 54,536
Institutional Government Money Market Fund 24,332 -- 24,332
Government Money Market Fund 7,859 -- 7,859
U.S. Treasury Money Market Fund 45,276 -- 45,276
Michigan Municipal Money Market Fund --^ 4,472 4,472
Municipal Money Market Fund -- 5,805 5,805
The tax character of distributions paid during the fiscal year ended July 31,
2005 was as follows (Amounts in thousands):
ORDINARY TOTAL
INCOME TAX EXEMPT DISTRIBUTIONS
DISTRIBUTIONS DISTRIBUTIONS PAID
------------- ------------- -------------
Prime Money Market Fund $24,392 $ -- $24,392
Institutional Money Market Fund 24,208 -- 24,208
Institutional Government Money Market Fund 11,180 -- 11,180
Government Money Market Fund 4,101 -- 4,101
U.S. Treasury Money Market Fund 25,567 -- 25,567
Michigan Municipal Money Market Fund --^ 2,483 2,483
Municipal Money Market Fund -- 2,613 2,613
As of July 31, 2006, the components of accumulated earnings/(deficit) on a tax
basis were as follows (Amounts in thousands):
ACCUMULATED TOTAL
UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND ACCUMULATED
TAX EXEMPT ORDINARY DISTRIBUTIONS OTHER EARNINGS/
INCOME INCOME PAYABLE LOSSES (DEFICIT)
------------- ------------- ------------- ----------- -----------
Prime Money Market Fund $ -- $4,242 $(4,160) $ (92) $ (10)
Institutional Money Market Fund -- 6,458 (6,429) (1) 28
Institutional Government Money Market Fund -- 2,734 (2,723) --^ 11
Government Money Market Fund -- 887 (823) (2) 62
U.S. Treasury Money Market Fund -- 4,738 (4,737) (142) (141)
Michigan Municipal Money Market Fund 494 -- (500) -- (6)
Municipal Money Market Fund 803 -- (803) (3) (3)
As of July 31, 2006, 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 2014
---- ---- ---- ---- ----
Prime Money Market Fund $-- $-- $-- $-- $92 $ 92
Institutional Money Market Fund -- -- -- -- 1 1
Institutional Government Money Market Fund -- -- -- -- --^ --^
Government Money Market Fund 2 -- -- -- -- 2
U.S. Treasury Money Market Fund 83 59 -- -- -- 142
Municipal Money Market Fund -- -- 3 --^ -- 3
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, 2006, the Funds deferred to August 1, 2006 post October
capital losses (Amounts in thousands):
CAPITAL
LOSSES
-------
Government Money Market $--^
^ 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.
36
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 7/31/02 $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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND INSTITUTIONAL SHARES
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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 7/31/02 $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%
Year ended 7/31/06 $1.00 3.97% $ 563,551 0.54% 3.81% 0.66%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
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%
Year ended 7/31/06 $1.00 3.71% $ 455,183 0.79% 3.65% 0.91%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
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%
Year ended 7/31/06 $1.00 2.94% $ 1,216 1.54% 2.84% 1.66%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(b) to 7/31/02 $1.00 0.19%* $ 60 1.54%** 0.48%** 1.71%**
Year ended 7/31/03 $1.00 0.32% $ 154 1.14% 0.32% 1.65%
Year ended 7/31/04 $1.00 0.23% $ 2,843 0.98% 0.25% 1.66%
Year ended 7/31/05 $1.00 0.95% $ 1,474 1.46% 0.85% 1.65%
Year ended 7/31/06 $1.00 2.93% $ 879 1.54% 2.80% 1.66%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $1.00 3.45% $ 1,628 1.04% 3.71% 1.17%
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $1.00 4.30% $1,263,609 0.21% 4.25% 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%
Year ended 7/31/06 $1.00 4.22% $ 35,579 0.29% 4.16% 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%
Year ended 7/31/06 $1.00 4.15% $ 98,263 0.36% 4.21% 0.81%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $1.00 4.04% $ 160,782 0.46% 4.18% 0.91%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
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
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND INSTITUTIONAL SHARES
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
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 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%
Year ended 7/31/06 $1.00 4.23% $ 304,332 0.21% 4.24% 0.66%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $1.00 4.14% $ 6,337 0.29% 4.22% 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%
Year ended 7/31/06 $1.00 4.07% $ 190,260 0.36% 3.98% 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%
Year ended 7/31/06 $1.00 3.97% $ 96,003 0.46% 3.85% 0.92%
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $1.00 3.79% $ 127,537 0.58% 3.73% 0.68%
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
CLASS A SHARES
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%
Year ended 7/31/06 $1.00 3.61% $ 72,896 0.75% 3.53% 0.93%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $1.00 4.13% $ 386,757 0.21% 4.11% 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%
Year ended 7/31/06 $1.00 4.05% $ 61,992 0.29% 3.95% 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%
Year ended 7/31/06 $1.00 3.98% $ 625,196 0.36% 3.85% 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%
Year ended 7/31/06 $1.00 3.87% $ 113,124 0.46% 3.79% 0.90%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
40-41 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 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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
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)
Year ended 7/31/06 $1.00 0.02 --^ (0.02)
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
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)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
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 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%
Year ended 7/31/06 $1.00 2.65% $ 189,695 0.54% 2.63% 0.67%
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
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%
Year ended 7/31/06 $1.00 2.48% $ 1,686 0.70% 2.77% 0.93%
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $1.00 2.88% $ 214,995 0.25% 2.88% 0.81%
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
CLASS A SHARES
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%
Year ended 7/31/06 $1.00 2.62% $ 27,027 0.50% 2.62% 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%
Year ended 7/31/06 $1.00 2.80% $ 10,551 0.29% 3.23% 0.89%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $1.00 2.73% $ 2,402 0.36% 3.27% 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%
Year ended 7/31/06 $1.00 2.62% $ 26,028 0.49% 2.81% 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.
^ Amount is less than $0.005.
* Not annualized.
** Annualized.
See notes to financial statements
42
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and
Trustees of Fifth Third Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Fifth Third Prime Money Market
Fund, Fifth Third Institutional Money Market Fund, Fifth Third Institutional
Government Money Market Fund, Fifth Third Government Money Market Fund, Fifth
Third U.S. Treasury Money Market Fund, Fifth Third Michigan Municipal Money
Market Fund and Fifth Third Municipal Money Market Fund (separate portfolios
constituting Fifth Third Funds, hereafter referred to as the "Funds") at July
31, 2006, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods in the five years
then ended, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at July
31, 2006 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
September 22, 2006
44
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED):
- --------------------------------------------------------------------------------
Event (Unaudited) Subsequent to the Date of the Report of Independent Registered
Public Accounting Firm
Subsequent to the completion of the Funds' Annual Report to shareholders for the
fiscal year ended July 31, 2006, BISYS Fund Services, Inc. ("BISYS"), which
provides various services to the Trust, reached a settlement with the Securities
and Exchange Commission ("SEC") regarding the SEC's investigation of BISYS's
past payment of certain marketing and other expenses with respect to certain of
its mutual fund clients. The SEC's investigation of BISYS with respect to this
matter is complete. The SEC's inquiries related to this matter, including those
of the Trust's service arrangements with BISYS, have not been completed. At this
time, the Trust's management cannot evaluate the likelihood of an unfavorable
outcome or estimate the amount or range of potential loss, if any, with respect
to the Trust regarding the BISYS matter. Accordingly, the impact, if any, of
this matter on the Funds or the Funds' financial statements is uncertain.
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT ^
The Trustees and Officers of the Funds, their date of birth, the position they
hold with the Funds, their term of office and length of time served, a
description of their principal occupations during the past five years, the
number of portfolios in the fund complex that the Trustee oversees and any other
directorships held by the Trustee are listed in the two tables immediately
following. The business address of the persons listed below is 3435 Stelzer
Road, Columbus, Ohio 43219-3035
INDEPENDENT TRUSTEES
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF IN FUND
HELD OFFICE AND COMPLEX OTHER
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Durham Trustee Indefinite, Chairman of Clipper Products, Inc., 36 None
Date of Birth: 5/10/1945 June 2001- a wholesale distributor, 2005-Present.
Present Chairman of Norris Products Corp.,
a wholesale distributor, 2005-Present.
President and Chief Executive Officer
of Clipper Products, Inc., 1997-Present.
J. Joseph Hale Jr. Trustee Indefinite, Consultant, Duke Energy, 36 Trustee for
Date of Birth: 9/11/1949 March 2006-Present. President, Cinergy Hanover College.
2001-Present Foundation, November 2001-Present. National Underground
President, Cinergy Corp., Freedom Center,
Cincinnati Gas & Electric Co., The Cincinnati Zoo,
The Union Light Heat & Power Co., The Ohio Arts Council,
July 2000-October 2001. The Cincinnati
Parks Foundation,
and Playhouse
in the Park.
John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 36 Printing
Date of Birth: 12/5/1944 October Present. Business Industries of
2001-Present Management Consultant, April America: Web Offset
2000-February 2002. Assoc., Director;
Master Printers
of America, Director.
David J. Gruber Trustee Indefinite, Resources Global Professionals, 36 None
Date of Birth: 8/19/1963 December Project Professional, December
2003-Present 2004-Present. Ohio Arts & Sports
Facilities Commission (state
funding oversight agency),
CFO, April 2003-December 2004.
Ohio Expositions Commission
(state fair and expo center),
Finance Director, April
1996-March 2003.
^ Additional disclosure can be found in the Statement of Additional
Information, which can be obtained by calling 1-800-282-5706.
* Mr. Carey is treated by the Trust as an "interested person" (as defined in
Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor.
Mr. Carey is an "interested person" because of his past business
transactions with Fifth Third Bank and its affiliates.
45
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF IN FUND
HELD OFFICE AND COMPLEX OTHER
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Edward Burke Carey* Chairman- Indefinite, Carey Realty Investments, Inc. 36 The Foundation
Date of Birth: 7/2/1945 Board of January (real estate development and of the Catholic
Trustees 1989-Present consulting), President, 1990-Present. Diocese of
Columbus-Trustee,
Canisius
College-Trustee.
OFFICERS
TERM OF
POSITION(S) OFFICE AND
HELD LENGTH OF
NAME WITH THE TIME PRINCIPAL OCCUPATION(S)
AND DATE OF BIRTH FUNDS SERVED DURING THE PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------
Bryan C. Haft President Indefinite, Employee of BISYS Fund Services
Date of Birth: 1/23/1965 June Limited Partnership since 1992.
2005-Present
Matthew A. Ebersbach Vice President Indefinite, Assistant Vice President of Fifth
Date of Birth: 1/2/1970 March Third Bank since 2001
2006-Present
Russell D. Ungerman Vice President Indefinite, Assistant Vice President of Fifth
Date of Birth: 2/9/1971 September Third Bank since 1998.
2002-Present
Rodney L. Ruehle Anti-Money Laundering Indefinite, Employee of BISYS Fund Services
Date of Birth: 4/26/1968 and Chief Compliance Officer September Limited Partnership since August 1995.
2001-Present
Alaina Metz Assistant Secretary Indefinite, Employee of BISYS Fund Services
Date of Birth: 4/4/1967 September Limited Partnership since June 1995.
2004-Present
Aaron J. Masek Treasurer Indefinite, Employee of BISYS Fund Services
Date of Birth: 1/26/1974 November Limited Partnership since July 1996.
2005-Present
Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund Services
Date of Birth: 2/13/1962 and Assistant Treasurer September Limited Partnership since May 1995.
2001-Present
* Mr. Carey is treated by the Trust as an "interested person" (as defined in
Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor.
Mr. Carey is an "interested person" because of his past business
transactions with Fifth Third Bank and its affiliates.
46
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
As a shareholder of the Fifth Third Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; and (2)
ongoing costs, including management fees; distribution and/or service 12b-1
fees; and other Fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fifth Third Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from February 1, 2006 through July 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
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
- ----------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,021.80 $2.71 0.54%
Class A Shares 1,000.00 1,020.60 3.96 0.79%
Class B Shares 1,000.00 1,016.80 7.70 1.54%
Class C Shares 1,000.00 1,016.80 7.70 1.54%
Advisor Shares 1,000.00 1,019.30 5.21 1.04%
Institutional Money Market Fund Institutional Shares 1,000.00 1,023.50 1.05 0.21%
Select Shares 1,000.00 1,023.10 1.45 0.29%
Preferred Shares 1,000.00 1,022.80 1.81 0.36%
Trust Shares 1,000.00 1,022.30 2.31 0.46%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,023.20 1.05 0.21%
Select Shares 1,000.00 1,022.80 1.45 0.29%
Preferred Shares 1,000.00 1,022.40 1.81 0.36%
Trust Shares 1,000.00 1,021.90 2.31 0.46%
Government Money Market Fund Institutional Shares 1,000.00 1,021.00 2.91 0.58%
Class A Shares 1,000.00 1,020.20 3.71 0.74%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,022.70 1.05 0.21%
Select Shares 1,000.00 1,022.20 1.45 0.29%
Preferred Shares 1,000.00 1,021.90 1.80 0.36%
Trust Shares 1,000.00 1,021.40 2.31 0.46%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,014.60 2.70 0.54%
Class A Shares 1,000.00 1,013.80 3.50 0.70%
Municipal Money Market Fund Institutional Shares 1,000.00 1,016.10 1.05 0.21%
Class A Shares 1,000.00 1,014.80 2.30 0.46%
Select Shares 1,000.00 1,015.70 1.45 0.29%
Preferred Shares 1,000.00 1,015.30 1.80 0.36%
Trust Shares 1,000.00 1,014.80 2.30 0.46%
* 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.
47
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED:
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may however use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
- ----------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,022.12 $2.71 0.54%
Class A Shares 1,000.00 1,020.88 3.96 0.79%
Class B Shares 1,000.00 1,017.16 7.70 1.54%
Class C Shares 1,000.00 1,017.16 7.70 1.54%
Advisor Shares 1,000.00 1,019.64 5.21 1.04%
Institutional Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21%
Select Shares 1,000.00 1,023.36 1.45 0.29%
Preferred Shares 1,000.00 1,023.01 1.81 0.36%
Trust Shares 1,000.00 1,022.51 2.31 0.46%
Institutional Government
Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21%
Select Shares 1,000.00 1,023.36 1.45 0.29%
Preferred Shares 1,000.00 1,023.01 1.81 0.36%
Trust Shares 1,000.00 1,022.51 2.31 0.46%
Government Money Market Fund Institutional Shares 1,000.00 1,021.92 2.91 0.58%
Class A Shares 1,000.00 1,021.12 3.71 0.74%
U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21%
Select Shares 1,000.00 1,023.36 1.45 0.29%
Preferred Shares 1,000.00 1,023.01 1.81 0.36%
Trust Shares 1,000.00 1,022.51 2.31 0.46%
Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,022.12 2.71 0.54%
Class A Shares 1,000.00 1,021.32 3.51 0.70%
Municipal Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21%
Class A Shares 1,000.00 1,022.51 2.31 0.46%
Select Shares 1,000.00 1,023.36 1.45 0.29%
Preferred Shares 1,000.00 1,023.01 1.81 0.36%
Trust Shares 1,000.00 1,022.51 2.31 0.46%
* 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.
48
ADDRESSES
- -------------------------------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Money Market Mutual Funds 3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------------------
Investment Advisor Fifth Third Asset Management, Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- -------------------------------------------------------------------------------------------------------
Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------------------
Administrator, Accountant and Custodian Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- -------------------------------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------------------
Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc.
and Sub-Accountant 3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------------------
Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- -------------------------------------------------------------------------------------------------------
Logo: Fifth Third Funds
9/06 AR-MMF-06
[LOGO] Fifth Third Funds
STOCK AND BOND MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
___________________
July 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 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 ..................................................... 6
Quality Growth Fund ..................................................... 8
Large Cap Core Fund ..................................................... 10
Equity Index Fund ....................................................... 12
Balanced Fund ........................................................... 14
Micro Cap Value Fund .................................................... 16
Small Cap Value Fund .................................................... 18
Multi Cap Value Fund .................................................... 20
Disciplined Large Cap Value Fund ........................................ 22
Fifth Third LifeModel Aggressive Fund SM ................................ 24
Fifth Third LifeModel Moderately Aggressive Fund SM ..................... 26
Fifth Third LifeModel Moderate Fund SM .................................. 28
Fifth Third LifeModel Moderately Conservative Fund SM ................... 30
Fifth Third LifeModel Conservative Fund SM .............................. 32
Strategic Income Fund ................................................... 34
Dividend Growth Fund .................................................... 36
Technology Fund ......................................................... 38
International Equity Fund ............................................... 40
High Yield Bond Fund .................................................... 42
Bond Fund ............................................................... 44
Intermediate Bond Fund .................................................. 46
Short Term Bond Fund .................................................... 48
U.S. Government Bond Fund ............................................... 50
Municipal Bond Fund ..................................................... 52
Intermediate Municipal Bond Fund ........................................ 54
Ohio Municipal Bond Fund ................................................ 56
Michigan Municipal Bond Fund ............................................ 58
Schedules of Portfolio Investments ...................................... 61
Notes to Schedules of Portfolio Investments ............................. 117
Statements of Assets and Liabilities .................................... 126
Statements of Operations ................................................ 131
Statements of Changes in Net Assets ..................................... 136
Notes to Financial Statements ........................................... 154
Financial Highlights .................................................... 166
Notes to Financial Highlights ........................................... 206
Report of Independent Registered Public Accounting Firm ................. 207
Supplemental Information ................................................ 208
OUR MESSAGE TO YOU
- --------------------------------------------------------------------------------
[LOGO] The 12-month period ending July 31, 2006, proved challenging for stock
and bond investors alike. Nonetheless, we are pleased of the performance of the
Fifth Third Funds.
As for the issues faced by the financial markets during the period, two themes--
the relentless pressure of the Federal Reserve Board (the "Fed") to increase
short-term interest rates and the surging price of crude oil--overshadowed all
else.
The Fed took its key fed funds rate from 3.25% at the beginning of the fiscal
year to 5.25% by the end. Perhaps more importantly, the central bank's
chairmanship turned over from Alan Greenspan to Ben Bernanke. Having guided the
Fed quite adeptly since 1987, Mr. Greenspan's legacy seems as though it will be
a hard act to follow for Mr. Bernanke. Shortly after the period's end, the Fed
paused in its tightening cycle, but as Mr. Bernanke's tendencies remain
relatively unknown, many are suspicious that the policymakers may not yet be
done.
Crude oil moved from $60 a barrel at the beginning of the fiscal year to nearly
$75 barrel at its end--an increase of almost 25%. This ruthless rise in the
price of black gold had the arguable effect of causing simultaneous inflationary
and recessionary fears in the economy. A terrible 2005 hurricane season severely
disrupted the U.S. energy infrastructure, although Mother Nature did bail us out
with a warmer winter than normal. As for 2006, the first portion of hurricane
season was relatively quiet, though it's still early.
The combination of an active central bank and rising oil prices applied downward
pressure on the returns of virtually all domestic financial markets. Among those
posting subdued gains were the major domestic stock indices that many of our
stock managers utilize. These broad indices generally recorded advances in the
5% range during the fiscal year. Interestingly, large cap stocks outperformed
small cap equities for the first time in five years. In addition, there was a
lag in growth stocks, which benefit from healthy expectations for economic and
corporate earnings growth rates. The growth stock indices that we utilize
underperformed the value indices by more than 9% for large cap stocks and around
4% for small cap stocks.
Fixed income investments endured even tougher obstacles than stocks. With an
active central bank pushing short-term rates higher--causing prices to move
downward in an inverse fashion--few bonds performed well. Adding to the adverse
conditions was a flattening of the yield curve, which occurs when short-term
rates increase faster than long-term yields. Consider that while the Fed's
overnight rate rose 2% during the period, short-term Treasury yields moved
higher by about 1% and long-term yields moved higher by about 0.6%. Within this
environment, the total returns of the major bond indices that our fund managers
use fell within the 2% range.
Compared to the year-over-year gain of 4.1% in the Consumer Price Index 1, such
meager returns signaled a negative real return for bond investors--something
none of us like to see. However, if the Fed plans to hold on further moves in
the coming quarters, we are still optimistic that bond returns could take a turn
for the better over the next 12-months. Further reinforcing our outlook was the
significant degree to which the yield curve flattened, which indicates that the
bond market is already anticipating Fed rate cuts some time in 2007.
More broadly speaking, the fundamentals that drive financial markets over longer
periods of time--fiscal policy, monetary policy, economic growth, corporate
profit growth, bond yields and inflation--ended the year in an overall mixed
fashion. Notable developments include:
o The favorable 15% tax treatment for dividends and long-term capital gains
was extended to 2010, a very positive development.
o The Fed left its fed funds rate at 5.25% at its early August meeting
conducted just after the end of our fiscal year.
1
o Gross Domestic Product 1 growth averaged 3.5%--consistent with its
long-term average--during the 12-month period ended July 31,2006.
o Double-digit gains in quarterly operating profit growth for the S&P 500(R)
Index 1 reached 12 consecutive reporting periods in the second quarter of
2006.
o In comparison to the start of the fiscal year longer term Treasury yields
moved higher but ended the fiscal year below 5%, while corporate bond yields
ended the period in a similar spot, relative to Treasuries.
o The 4.1% year-over-year increase in consumer prices was cause for concern,
but the Fed indicated it believes inflationary pressures will cool in the
near term.
Despite the challenges of the fiscal year, our fund managers stayed with their
disciplines to produce competitive returns for you, our shareholders. We thank
you for your continued confidence in the family of 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.
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1 TERMS AND DEFINITIONS
- --------------------------------------------------------------------------------
CONSUMER PRICE INDEX IS A MEASURE THAT EXAMINES THE WEIGHTED AVERAGE OF PRICES
OF A BASKET OF CONSUMER GOODS AND SERVICES, SUCH AS TRANSPORTATION, FOOD AND
MEDICAL CARE.
GROSS DOMESTIC PRODUCT IS THE MONETARY VALUE OF ALL THE GOODS AND SERVICES PRO
DUCED BY AN ECONOMY OVER A SPECIFIED PERIOD. IT INCLUDES CONSUMPTION, GOVERNMENT
PURCHASES, INVESTMENTS, AND EXPORTS MINUS IMPORTS.
THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500(R) INDEX") 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 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
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SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Small Cap Growth
Fund (Institutional Shares) advanced 2.71% on a net of fee basis, outgaining its
benchmark, the Russell 2000(R) Growth Index, which returned 1.53%.
The modest gains mask a volatile period which featured a drop early on, a
sizable rally from late 2005 through early May and another large drop within the
final months. A catalyst for the wild swings was the Fed, which raised its key
interest rate a quarter point at each of its eight meetings during the period.
This resulted in a short-term rate of 5.25%, a level that fueled some concerns
that the Fed had gone too far in its efforts to tame inflation.
Many investors turned defensive during the period's final stretch and opted for
larger, more liquid stocks, which, in turn, dampened the performance of small
cap equities.
Against this backdrop, strong stock selection in the industrials and energy
sectors lifted the Fund. More specifically, electrical equipment and
transportation logistics positions aided the industrials group while oilfield
equipment and services names boosted the energy position. Despite a minor
underweight, relative to the benchmark, exploration and production outfits also
bolstered returns from the energy sector.+
Elsewhere, a lack of exposure to the struggling media group within the consumer
discretionary sector enhanced relative performance.+
Diminishing returns were holdings in the information technology (IT) sector,
especially within the computers and peripherals and IT services groups, and an
underweight stake in consumer staples, which rallied during the late-period
flight to stability.+
Over the course of the period, the Fund's stake in the IT and consumer
discretionary sectors was lightened with most of the proceeds directed into the
industrials space.+
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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.
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AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares 2.71% 4.12% 7.23% $20,090
- --------------------------------------------------------------------------------
Class A Shares* -2.63% 2.77% 6.42% $18,623
- --------------------------------------------------------------------------------
Class B Shares** -2.76% 2.80% 6.14% $18,143
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Class C Shares** 1.75% 3.09% 6.15% $18,164
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Advisor Shares*** -1.11% 2.91% 6.32% $18,465
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Russell 2000(R)
Growth Index 1 1.53% 4.23% 4.93% $16,177
- --------------------------------------------------------------------------------
Lipper Small-Cap
Growth Funds Average 1 0.30% 3.32% 7.95% $23,459
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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%.
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.
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TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
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AS A PERCENTAGE OF VALUE OF INVESTMENTS+
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Core Laboratories N.V. ................................................ 1.79%
General Cable Corp..................................................... 1.70%
Psychiatric Solutions, Inc............................................. 1.68%
Bucyrus International, Inc............................................. 1.65%
First Cash Financial Services, Inc..................................... 1.47%
Huron Consulting Group, Inc............................................ 1.43%
FormFactor, Inc........................................................ 1.41%
NICE Systems, Ltd., ADR ............................................... 1.37%
VCA Antech, Inc........................................................ 1.34%
MWI Veterinary Supply, Inc............................................. 1.31%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
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SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Small Lipper Small-Cap
Cap Growth Fund Russell 2000(R) Growth Funds
(Institutional Shares) Growth Index Average
---------------------- --------------- ----------------
7/31/96 10000 10000 10000
10800 11293 11329
12/96 11377 11323 11285
11157 10136 10168
13167 11915 12005
15179 13931 14081
12/97 14556 12789 13175
15918 14309 14826
15183 13487 14351
11964 10471 11348
12/98 13660 12946 14091
12541 12729 13878
15022 14606 15913
14553 13888 16175
12/99 17482 18525 23078
18914 20245 26848
18669 18752 25217
19004 18007 25438
12/00 17415 14370 20976
14851 12185 17013
17020 14376 19988
13841 10339 15158
12/01 16700 13044 18751
17061 12788 18460
15097 10781 15883
12202 8461 12873
12/02 12525 9097 13556
12117 8744 13136
14138 10855 16096
15552 11992 17624
12/03 17592 13512 19904
17937 14267 20811
17822 14280 20651
16693 13422 19331
12/04 18655 15446 22079
17990 14391 20995
18454 14892 21853
19245 15833 23175
12/05 19520 16087 23537
22826 18398 26552
21130 17064 24746
7/31/06 20090 16177 23459
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 2000(R) Growth
Index and the Lipper Small-Cap Growth Funds Average. The Russell 2000(R)
Growth Index tracks the performance of common stocks that measure the
performance of the securities found in the Russell 2000(R) universe with
higher forecasted growth values. The Lipper Small-Cap Growth Funds Average
is representative of the average of the total returns reported by all of
the mutual funds designated by Lipper, Inc., which fell into this
category.
The Russell 2000(R) Growth Index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper Small-Cap Growth
Funds Average and the Fund's performance reflect the deduction of fees for
these value-added services. Investors cannot invest directly in an index,
although they can invest in its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
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MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Mid Cap Growth Fund
(Institutional Shares) advanced 4.56% on a net of fee basis, topping its
benchmark, the Russell MidCap(R) Growth Index, which gained 2.98%.
Inflation fears, rising interest rates and an economic slowdown sent investors
scurrying back to value stocks through the final few months of the period.
Large-capitalization companies also benefited from the rush to stability, which
reversed months of outperformance by small- and mid-cap stocks with solid growth
characteristics.
Market sentiment generally hinged on the Fed, which ratcheted up its key
interest rate from 3.25% to 5.25% during the period. As the campaign wore on and
new Fed chair Ben Bernanke assumed a vigilant position on inflation--economists
generally believe that higher short-term interest rates soften inflationary
pressures--some investors questioned whether the central bank had been too
aggressive and was risking a significant economic slowdown.
Within the Fund, the industrials, energy and materials sectors led the way. More
specifically, industrial distribution and machinery stocks lifted the
industrials group, oilfield equipment and services companies excelled in the
energy sector and specialty metals accounted for the bulk of the gain from
materials.+
Adding to performance relative to the benchmark was a lack of exposure to the
media sector, which weighed heavily on the consumer discretionary sector.+
Semiconductor and computer peripheral stocks hindered the Fund's returns from
the information technology (IT) sector while specialty retailers pulled down the
consumer discretionary group. Further limiting relative gains was an absence of
holdings within the diversified financial services industry, which did
exceptionally well.+
Building on the period's strengths, the Fund broadened its stake in the
industrials sector, with the addition of commercial services stocks, and the
materials group. Conversely, profits were booked in the energy sector,
particularly among exploration and production firms. In the consumer space,
broader uncertainties prompted a shift from discretionary to staples stocks.+
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INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
MID CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MID-SIZE
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MID-SIZE
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares 4.56% 2.75% 8.48% $22,575
- --------------------------------------------------------------------------------
Class A Shares* -0.91% 1.45% 7.69% $20,980
- --------------------------------------------------------------------------------
Class B Shares** -1.49% 1.37% 7.34% $20,307
- --------------------------------------------------------------------------------
Class C Shares** 3.57% 1.73% 7.49% $20,587
- --------------------------------------------------------------------------------
Advisor Shares*** 0.70% 1.59% 7.63% $20,860
- --------------------------------------------------------------------------------
Russell MidCap(R)
Growth Index 1 2.98% 5.46% 8.94% $23,552
- --------------------------------------------------------------------------------
Lipper Mid-Cap Growth
Funds Average 1 1.97% 2.95% 7.66% $21,694
- --------------------------------------------------------------------------------
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%.
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.
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TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
WESCO International, Inc............................................... 1.82%
T. Rowe Price Group, Inc............................................... 1.77%
NII Holdings, Inc...................................................... 1.75%
Alliance Data Systems Corp............................................. 1.73%
National-Oilwell Varco, Inc............................................ 1.67%
GlobalSantaFe Corp..................................................... 1.64%
Corporate Executive Board Co........................................... 1.61%
Herbalife Ltd.......................................................... 1.58%
Cognizant Technology Solutions Corp.................................... 1.54%
Cytyc Corp............................................................. 1.53%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Mid Russell Lipper Mid-Cap
Cap Growth Fund MidCap(R) Growth Funds
(Institutional Shares) Growth Index Average
---------------------- --------------- ----------------
7/31/96 10000 10000 10000
11359 11210 11284
12/96 11987 11534 11443
11546 11113 10668
13408 12749 12335
15696 14533 14185
12/97 15900 14134 13671
17197 15821 15398
15967 15811 15377
13833 13171 12545
12/98 16453 16658 15696
15704 17228 15907
17456 19022 17636
15640 18070 17200
12/99 19261 25203 23823
21803 30527 27887
21020 28266 26129
22756 28979 27706
12/00 20595 22242 22610
17110 16663 17697
20308 19359 19808
15701 13977 15060
12/01 19301 17760 18018
18856 17446 17712
15381 14261 15240
12607 11811 12612
12/02 13428 12893 13194
13078 12891 12929
15570 15309 15171
16391 16405 15998
12/03 18466 18400 17830
18977 19289 18609
18870 19492 18711
17765 18648 17803
12/04 20001 21248 20172
19314 20893 19553
20594 21610 20200
21725 23025 21460
12/05 22261 23818 22118
24962 25631 24183
23557 24428 22722
7/31/06 22575 23552 21694
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell MidCap(R) Growth
Index and the Lipper Mid-Cap Growth Funds Average. The Russell MidCap(R)
Growth Index measures the performance of those Russell mid cap companies
with higher price-to-book ratios and higher forecasted growth values. The
stocks are also members of the Russell 1000(R) Growth Index. The Lipper
Mid-Cap Growth Funds Average is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc.,
which fell into this category.
The Russell MidCap(R) Growth Index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper Mid-Cap Growth
Funds Average and the Fund's performance reflect the deduction of fees for
these value-added services. Investors cannot invest directly in an index,
although they can invest in its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
QUALITY GROWTH FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Quality Growth Fund
(Institutional Shares) decreased 4.10% on a net of fee basis, underperforming
its benchmark, the Russell 1000(R) Growth Index, which lost 0.76%.
Despite a continued sound economy and strong corporate earnings growth, the
market flocked to defensive, slower growth companies through the final three
months of the period. Fears that inflation had accelerated more than expected
fueled the shift, which was magnified by the Fed's assertion that it needed to
keep raising interest rates to hold price pressures at bay. Caught in the
crosswinds, stocks of some of the faster growth companies in the Fund declined
on concerns about the sustainability of future earnings growth.
Modestly overweight positions, relative to the benchmark, in the information
technology (IT) and consumer discretionary sectors contributed to the Fund's
decline. Although the Fund's IT investments were focused on companies with solid
long-term prospects in the semiconductor and electronics industries, the stocks
dropped amid investors' aversion to anything perceived as economically
sensitive. Similarly, do-it-yourself home improvement retailers and casino
holdings weighed on the Fund's consumer discretionary stake.+
An underweight stake in the consumer staples space hampered relative performance
as well. The sector is filled with companies that have modest expectations for
growth and a low degree of economic sensitivity--the type of holdings that led
the market through the closing months despite relatively high valuations.+
An overweight stake in the financial services sector provided a lift. Strong
merger and acquisition activity aided capital market companies early and the
Fund later benefited from its rotation into large diversified banks. In
addition, strong performance from select biotechnology and healthcare services
firms generated solid healthcare sector returns.+
Amid broad expectations for slower--but still positive-- economic and earnings
growth rates, the Fund ended the period with a renewed focus on company
fundamentals. This emphasis stressed strong balance sheets, healthy cash flow
levels and solid earnings growth that is sustainable through periods of moderate
growth. In addition, companies that serve vibrant market niches held appeal,
provided they were selling at reasonable valuations.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares -4.10% -2.58% 6.31% $18,446
- --------------------------------------------------------------------------------
Class A Shares* -9.06% -3.81% 5.57% $17,190
- --------------------------------------------------------------------------------
Class B Shares** -9.77% -3.92% 5.21% $16,616
- --------------------------------------------------------------------------------
Class C Shares** -5.03% -3.55% 5.37% $16,874
- --------------------------------------------------------------------------------
Advisor Shares*** -7.66% -3.70% 5.50% $17,078
- --------------------------------------------------------------------------------
Russell 1000(R)
Growth Index 1 -0.76% -0.64% 5.86% $17,667
- --------------------------------------------------------------------------------
S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405
- --------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 3.77% 1.40% 7.18% $20,548
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES
OF THE QUALITY GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996
AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE
REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
CVS Corp............................................................... 3.66%
Gilead Sciences, Inc................................................... 3.50%
Pharmaceutical Product Development..................................... 3.23%
Cisco Systems, Inc..................................................... 2.81%
Caremark Rx, Inc....................................................... 2.70%
Best Buy Co., Inc...................................................... 2.56%
Bank of America Corp................................................... 2.43%
Genzyme Corp........................................................... 2.10%
Marriott International, Inc., Class A.................................. 2.07%
First Data Corp........................................................ 1.95%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
8
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
QUALITY GROWTH FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Quality
Growth Fund Russell 1000(R) S&P 500(R) Lipper Large-Cap
(Institutional Shares) Growth Index Index Core Funds Average
---------------------- --------------- ---------------- --------------------
7/31/96 10000 10000 10000 10000
11034 11005 10785 10802
12/96 11842 11670 11684 11555
11877 11732 11998 11690
14267 13951 14090 13539
15318 15000 15146 14675
12/97 15714 15228 15580 14875
17583 17535 17752 16726
17583 18331 18341 17084
15952 16666 16521 15148
12/98 20453 21122 20036 18289
21158 22464 21034 18969
22465 23329 22514 20293
21807 22474 21112 18970
12/99 25333 28125 24250 21801
27164 30129 24806 22610
26684 29316 24147 22063
26194 27739 23913 22106
12/00 24366 21818 22043 20557
20259 17258 19431 18129
21408 18711 20568 19114
17620 15079 17550 16230
12/01 21014 17362 19425 18000
20462 16913 19479 17982
16424 13755 16871 15674
13384 11685 13958 13147
12/02 14183 12521 15134 14041
13701 12387 14657 13538
15873 14160 16912 15454
16695 14714 17360 15823
12/03 18632 16246 19472 17631
18691 16374 19802 17860
18445 16691 20142 18055
17000 15819 19766 17600
12/04 18468 17269 21590 19157
17551 16564 21126 18772
18222 16972 21415 19014
19022 17653 22187 19750
12/05 19623 18178 22649 20227
20364 18741 23602 21043
19222 18010 23262 20552
7/31/06 18446 17667 23405 20548
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 1000(R) Growth
Index, the S&P 500(R) Index and the Lipper Large-Cap Core Funds Average.
The Russell 1000(R) Growth Index measures the performance of 1,000
securities found in the Russell universe with higher price-to-book ratios
and higher forecasted growth values. The S&P 500(R) Index measures the
performance of 500 selected common stocks, most of which are listed on the
New York Stock Exchange, and is a measure of the U.S. stock market as a
whole. The Lipper Large-Cap Core Funds Average is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The Russell 1000(R) Growth Index and the S&P 500(R) Index are unmanaged
and do not reflect the deduction of fees associated with a mutual fund
such as investment management and fund accounting fees. However, the
Lipper Large-Cap Core Funds Average and the Fund's performance reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in its underlying mutual
funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
LARGE CAP CORE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Large Cap Core Fund
(Institutional Shares) advanced 6.12% on a net of fee basis, outperforming its
benchmark, the S&P 500 Index, which advanced 5.38%.
The results were indicative of the performance the quantitative mathematical
model used to select stocks for the Fund. The model, which provides an objective
and balanced approach to evaluating stocks, consists of four broad factor
groups-- sentiment, valuation, earnings quality and capital discipline. The
diverse factors employed in the model help ensure that it--and the
Fund--performs effectively in a variety of market conditions. This was
especially important during the reporting period as the market rotated between
two dramatically different environments.
High energy prices and inflation concerns weighed heavily on the market during
the first three months of the period and again over the final three months. Such
conditions prompted a shift from economically sensitive sectors into lower risk
stocks with more reasonable valuations. Since valuation factors are well
represented in the model, the Fund more than held its own during these periods.
During the intermediate six months of the period, strong industrial data,
stabilizing energy prices and strong earnings reports fueled investor optimism.
During this phase, stocks with positive earnings revisions outperformed, and as
a result of the sentiment factors in the model, the Fund was more than
competitive against its benchmark.
On an industry basis, overweight positions, relative to the benchmark, in
integrated oil companies, diversified financial service providers and railroads
boosted returns, as did an underweight exposure to the slumping Internet
software and services group.+
Positions that diminished results included an underweight stake in the
telecommunications services sector, which thrived through the closing months of
the period despite high valuations, and an overweight in industrials, which led
the market early on before slumping with other economically sensitive groups.+
Generally, sector weightings don't vary much from the benchmark, but stock
selection within a group can generate a significant difference. Standouts that
enhanced returns during the past 12-months included picks in the healthcare
services and beverage industries.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares 6.12% 2.16% 6.94% $19,553
- --------------------------------------------------------------------------------
Class A Shares* 0.54% 0.86% 6.12% $18,117
- --------------------------------------------------------------------------------
Class B Shares** 0.07% 0.75% 5.85% $17,659
- --------------------------------------------------------------------------------
Class C Shares** 5.07% 1.13% 5.85% $17,665
- --------------------------------------------------------------------------------
Advisor Shares*** 2.20% 0.97% 6.05% $17,997
- --------------------------------------------------------------------------------
Russell 1000(R) 5.23% 3.45% 9.12% $23,943
Index 1
- --------------------------------------------------------------------------------
S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405
- --------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 3.77% 1.40% 7.18% $20,548
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTST+
- --------------------------------------------------------------------------------
Exxon Mobil Corp....................................................... 4.03%
General Electric Corp.................................................. 3.06%
Microsoft Corp......................................................... 2.50%
Citigroup, Inc......................................................... 2.35%
Chevron Corp........................................................... 1.98%
J.P. Morgan Chase & Co................................................. 1.78%
IBM Corp............................................................... 1.76%
Cisco Systems, Inc..................................................... 1.68%
Hewlett-Packard Co..................................................... 1.56%
Wells Fargo & Co....................................................... 1.47%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
10
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
LARGE CAP CORE FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Large
Cap Core Fund Russell 1000(R) Lipper Large-Cap
(Institutional Shares) Index S&P 500 Index Core Funds Average
---------------------- --------------- ---------------- --------------------
7/31/96 10000 10000 10000 10000
10691 10850 10785 10802
12/96 11428 11716 11684 11555
11646 11897 11998 11690
13110 13897 14090 13539
14284 15110 15146 14675
12/97 14187 15564 15580 14875
16028 17645 17752 16726
16545 18087 18341 17084
14992 16222 16521 15148
12/98 18169 19770 20036 18289
18972 20586 21034 18969
20236 22052 22514 20293
18965 20596 21112 18970
12/99 21583 23905 24250 21801
21807 24948 24806 22610
21157 24092 24147 22063
20753 24264 23913 22106
12/00 19154 22043 22043 20557
16874 19273 19431 18129
17749 20489 20568 19114
15232 17368 17550 16230
12/01 16699 19298 19425 18000
16727 19441 19479 17982
14483 16825 16871 15674
11855 13979 13958 13147
12/02 12730 15120 15134 14041
12284 14675 14657 13538
13999 16985 16912 15454
14306 17494 17360 15823
12/03 16053 19639 19472 17631
16448 20013 19802 17860
16603 20294 20142 18055
16228 19926 19766 17600
12/04 17762 21879 21590 19157
17702 21462 21126 18772
17895 21902 21415 19014
18366 22767 22187 19750
12/05 18771 23250 22649 20227
19716 24294 23602 21043
19359 23891 23262 20552
7/31/06 19553 23943 23405 20548
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 1000(R) Index, the
S&P 500(R) Index and the Lipper Large-Cap Core Funds Average. The Russell
1000(R) Index measures the performance of 1,000 largest securities found
in the Russell universe. The S&P 500(R) Index measures the performance of
500 selected common stocks, most of which are listed on the New York Stock
Exchange, and is a measure of the U.S. stock market as a whole. The Lipper
Large-Cap Core Funds Average is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc.,
which fell into this category.
The Russell 1000(R) Index and the S&P 500(R) Index are unmanaged and do
not reflect the deduction of fees associated with a mutual fund such as
investment management and fund accounting fees. However, the Lipper
Large-Cap Core Funds Average and the Fund's performance reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in its underlying mutual
funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Equity Index Fund
(Institutional Shares) returned 5.21% on a net of fee basis, underperforming its
benchmark, the S&P 500(R) Index, which advanced 5.38%. As the Fund seeks to
duplicate the returns of the S&P 500(R) Index, slight underperformance is
expected, due primarily to Fund management fees.
Following a significant mid-period runup in cyclical stocks, investors reverted
to a more defensive mindset in May and sent economically sensitive issues
tumbling. Accordingly, value stocks generally outperformed growth names, large
capitalization holdings topped small cap equities and higher quality positions
outperformed low quality stocks.
From a sector standpoint, the energy sector led the market as oil prices settled
above $70 a barrel. Early attraction to exploration and production companies
gave way to drillers and oilfield service companies, which benefited from
expanded capital expenditure budgets industrywide.
One of the worst performing groups during the first six months of
period--telecommunication services--rallied through the second half to finish
with the second-best overall performance. As risk tolerance faded, many
investors sought out the stable growth rates found within the sector, as well as
relatively healthy dividend yields.+
Interestingly, the financial services sector also boosted returns despite
steadily rising interest rates, which usually weigh on bank earnings. Largely
accounting for the outperformance were brokerages, asset managers and large
investment banks, which profited from the heightened merger and acquisition
activity.+
Hindering performance were the information technology (IT) and consumer
discretionary sectors, which both posted negative returns. Slowing growth in
personal computer sales and easing fortunes among high-flying Internet concerns
weighed on the IT group while worries about consumer spending in the face of
higher interest rates and a cooler housing market prompted an aversion to
discretionary stocks.
- --------------------------------------------------------------------------------
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 95% BETWEEN THE PERFORMANCE
OF THE FUND AND THAT OF THE S&P 500(R) INDEX WITHOUT TAKING INTO ACCOUNT THE
FUND'S EXPENSES.
IT IS IMPORTANT TO REMEMBER THAT THERE ARE RISKS ASSOCIATED WITH INDEX
INVESTING, INCLUDING THE POTENTIAL RISK OF MARKET DECLINE, AS WELL AS THE RISKS
ASSOCIATED WITH INVESTING IN SPECIFIC COMPANIES.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares 5.21% 2.55% 8.51% $22,625
- --------------------------------------------------------------------------------
Class A Shares* -0.28% 1.24% 7.68% $20,959
- --------------------------------------------------------------------------------
Class B Shares** -0.83% 1.14% 7.43% $20,469
- --------------------------------------------------------------------------------
Class C Shares** 4.15% 1.53% 7.43% $20,480
- --------------------------------------------------------------------------------
Advisor Shares*** 1.32% 1.39% 7.63% $20,856
- --------------------------------------------------------------------------------
Select Shares 5.13% 2.46% 8.43% $22,465
- --------------------------------------------------------------------------------
Preferred Shares 5.06% 2.39% 8.35% $22,302
- --------------------------------------------------------------------------------
Trust Shares 4.95% 2.29% 8.25% $22,086
- --------------------------------------------------------------------------------
S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405
- --------------------------------------------------------------------------------
Lipper S&P 500(R) Index
Objective Funds Average 1 4.84% 2.26% 8.42% $22,450
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE EQUITY
INDEX FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INDEX
EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992.
PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES
REFLECTS THE PERFORMANCE OF THE KENT INDEX EQUITY FUND INVESTMENT SHARES, WITH
AN INCEPTION DATE OF NOVEMBER 25, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE
INCEPTION DATE FOR THE CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001.
PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES
REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT
EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES.
THE INCEPTION DATE FOR THE SELECT, PREFERRED AND TRUST SHARES IS OCTOBER 20,
2003. PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF THE SELECT, PREFERRED AND TRUST
SHARES REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO
REFLECT EXPENSES FOR SELECT, PREFERRED AND TRUST SHARES. DURING THE PERIOD
SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
Exxon Mobil Corp....................................................... 3.14%
General Electric Corp.................................................. 2.60%
Citigroup, Inc......................................................... 1.84%
Bank of America Corp................................................... 1.80%
Microsoft Corp......................................................... 1.61%
Pfizer, Inc............................................................ 1.46%
Johnson & Johnson...................................................... 1.42%
Procter & Gamble Co.................................................... 1.41%
Altria Group, Inc...................................................... 1.28%
J.P. Morgan Chase & Co................................................. 1.21%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
12
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Equity Lipper S&P 500
Index Fund S&P 500(R) Index Objective
(Institutional Shares) Index Funds Average
---------------------- --------------- ----------------
7/31/96 10000 10000 10000
10770 10785 10774
12/96 11643 11684 11657
11947 11998 11952
13999 14090 14022
15015 15146 15051
12/97 15433 15580 15463
17568 17752 17598
18136 18341 18160
16324 16521 16345
12/98 19794 20036 19817
20770 21034 20775
22215 22514 22206
20797 21112 20801
12/99 23862 24250 23867
24391 24806 24382
23722 24147 23703
23484 23913 23460
12/00 21644 22043 21611
19060 19431 19031
20157 20568 20119
17185 17550 17146
12/01 18999 19425 18955
19033 19479 18987
16471 16871 16424
13616 13958 13579
12/02 14752 15134 14709
14282 14657 14228
16467 16912 16401
16882 17360 16815
12/03 18912 19472 18841
19218 19802 19139
19533 20142 19448
19158 19766 19065
12/04 20923 21590 20805
20463 21126 20342
20734 21415 20600
21472 22187 21324
12/05 21909 22649 21756
22829 23602 22655
22485 23262 22318
7/31/06 22625 23405 22450
The minimum investment for the Institutional Share Class is $5 million, based on
the initial investment of $5 million the ending value for the Institutional
Shares would have been $11,312,478.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the S&P 500(R) Index and the
Lipper S&P 500(R) Index Objective Funds Average. The S&P 500(R) Index
measures the performance of 500 selected common stocks, most of which are
listed on the New York Stock Exchange, and is a measure of the U.S. stock
market as a whole. The Lipper S&P 500(R) Index Objective Funds Average is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The S&P 500(R) Index is an unmanaged index and does not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper S&P 500(R) Index
Objective Funds Average and the Fund's performance reflect the deduction
of fees for these value-added services. Investors cannot invest directly
in an index, although they can invest in its underlying mutual funds or
securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
13
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Balanced Fund
(Institutional Shares) lost 1.51% on a net of fee basis, compared to the S&P
500(R) Index return of 5.38% and the Lehman Brothers Aggregate Bond Index return
of 1.46%.
As concerns slowing economic growth compounded amid rising interest rates and
increasing inflationary pressures, equity markets experienced a swift and
volatile shift in leadership through the final three months of the period.
Seeking companies with more reliable earnings and steadier growth rates,
investors dumped cyclical stocks, which tend to prosper in periods of robust
economic growth, and shifted to more defensive names.
Against this backdrop, Fund holdings in the healthcare, information technology
(IT) and energy sectors hampered performance. Within the healthcare space,
preferences shifted to previously neglected large capitalization pharmaceutical
companies and away from Fund positions in the insurer and medical device groups,
which contended with cloudy growth prospects.+
Broader expectations for slower growth also pulled down IT stocks, although the
Fund realized a modest benefit from reducing its stake from overweight to
underweight, relative to the benchmark, during the period. Also diminishing
returns were the Fund's oilfield services stocks, which dropped as energy sector
investors migrated toward large integrated oil companies.
Aiding performance was a well-diversified overweight position in the consumer
staples sector and a materials group stake which was somewhat insulated from
wild swings in commodity prices.
As interest rates rose across the yield curve, the fixed income component of the
Fund benefited from overweight positions, relative to the benchmark, in asset
backed securities (ABS) and commercial mortgage backed securities (CMBS).+
Consisting primarily of home equity loans originating 3-5 years ago--before the
rapid acceleration in housing values--the Fund's ABS exposure saw minimal
reaction to the cooling of the housing market.+
Within the CMBS space, the solid fundamental health of the commercial real
estate market, which featured low delinquency and foreclosure rates, bolstered
the Fund's holdings.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares -1.51% 0.26% 6.20% $18,251
- --------------------------------------------------------------------------------
Class A Shares* -6.63% -1.02% 5.45% $16,996
- --------------------------------------------------------------------------------
Class B Shares** -7.39% -1.13% 5.09% $16,428
- --------------------------------------------------------------------------------
Class C Shares** -2.56% -0.75% 5.27% $16,712
- --------------------------------------------------------------------------------
Advisor Shares*** -5.18% -0.90% 5.25% $16,685
- --------------------------------------------------------------------------------
S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405
- --------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1 1.46% 4.79% 6.33% $18,476
- --------------------------------------------------------------------------------
Lipper Balanced
Funds Average 1 4.30% 3.53% 7.02% $20,005
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
Fannie Mae, 5.50%, 9/1/36 TBA.......................................... 2.78%
Truck Retail Installment Paper Corp., 5.47%, 12/15/16.................. 2.19%
Chase Mortgage Finance Corp., Series 2005-AI,
Class 2A2,5.25%, 12/25/35............................................ 2.11%
J.P. Morgan Mortgage Trust, Series 2005-A2,
Class 3A2,4.93%, 4/25/35............................................. 2.11%
Freddie Mac, 4.50%, 8/15/16............................................ 1.65%
Chase Mortgage Finance Corp.,5.00%, I 1/25/1933........................ 1.63%
American Home Mortgage Investment Trust,
Series 2005-2, Class 5A4D, 5.33%, 9/25/35............................ 1.55%
Northern Trust Corp.................................................... 1.25%
McDonald's Corp........................................................ 1.24%
Procter & Gamble Co.................................................... 1.17%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
14
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Lehman Brothers
Balanced Fund S&P 500(R) Aggregate Bond Lipper Balanced
(Institutional Shares) Index Index Funds Average
---------------------- --------------- ---------------- --------------------
7/31/96 10000 10000 10000 10000
10825 10785 10157 10538
12/96 11399 11684 10462 11102
11358 11998 10403 11126
12935 14090 10785 12289
13926 15146 11144 13111
12/97 14144 15580 11472 13284
15193 17752 11650 14323
15113 18341 11922 14497
14146 16521 12427 13604
12/98 16669 20036 12468 15194
16770 21034 12407 15431
17476 22514 12298 16117
16851 21112 12381 15420
12/99 19275 24250 12366 16593
20349 24806 12639 17102
20304 24147 12859 16907
20752 23913 13247 17274
12/00 19717 22043 13804 17005
17081 19431 14223 16122
18202 20568 14303 16743
15599 17550 14962 15371
12/01 18053 19425 14969 16423
17847 19479 14983 16460
15720 16871 15537 15318
14412 13958 16249 13881
12/02 15100 15134 16504 14553
14850 14657 16734 14304
15895 16912 17153 15840
16190 17360 17128 16133
12/03 17316 19472 17182 17367
17417 19802 17638 17739
17385 20142 17207 17692
17205 19766 17758 17631
12/04 18161 21590 17927 18751
18188 21126 17841 18500
18343 21415 18378 18818
18382 22187 18254 19299
12/05 18499 22649 18363 19569
18933 23602 18244 20154
18443 23262 18230 19916
7/31/06 18251 23405 18476 20005
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the S&P 500(R) Index, the
Lehman Brothers Aggregate Bond Index and Lipper Balanced Funds Average.
The S&P 500(R) Index measures the performance of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. stock market as a whole. The Lehman Brothers Aggregate
Bond Index is generally representative of the bond market as a whole. The
Lipper Balanced Funds Average is representative of the average of the
total returns reported by all of the mutual funds designated by Lipper,
Inc., which fell into this category.
The S&P 500(R) Index and the Lehman Brothers Aggregate Bond Index are
unmanaged and do not reflect the deduction of fees associated with a
mutual fund such as investment management and fund accounting fees.
However, the Lipper Balanced Funds Average and the Fund's performance
reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in the
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MICRO CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Micro Cap Value
Fund (Institutional Shares) gained 1.93% on a net of fees basis, underperforming
its benchmark, the Russell Microcap(R) Index, which returned 2.79%.
Despite rising interest rates, increasing prices on raw materials and a housing
slowdown, corporate earnings held up well during the period. Residual concerns
over such conditions, however, contributed to skittish equity markets, which
traded in a relatively muted range-bound fashion.
Relative to the benchmark, the Fund's most disappointing performance was in the
consumer discretionary sector. Both an overweight position in the poorly
performing group and company specific disappointments detracted from
performance. Having benefited from an overweight position in the sector over the
past several years, the Fund's exposure was gradually reduced to an underweight
stake over the course of the period.+
An underweight position in the financial services sector also hindered relative
returns as the sector performed well despite rising interest rates. With an eye
toward the eventual end of the Federal Reserve's rate-hike campaign, in which
the key overnight lending rate has advanced from 1.00% to 5.25% in a 24-month
span, the Fund recently increased its ownership of bank stocks.+
The Fund's best relative performance came in the industrials sector, where a
substantial overweight position and good stock selection contributed to gains.
Notably, picks in the transportation and engineering and construction groups
performed well. In addition, the Fund benefited from an underweight position in
the healthcare sector, where very good stock selection led to positive returns
in a sector that declined within the benchmark.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
MICRO CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MICRO-CAP
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MICRO-CAP
STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY
STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 2
--------- -------- -------- --------- ---------
Institutional Shares 2/1/98 1.93% 16.05% 13.92% $30,252
- --------------------------------------------------------------------------------
Class A Shares* 2/1/98 -3.51% 14.58% 13.08% $28,399
- --------------------------------------------------------------------------------
Class B Shares** 2/1/98 -2.70% 14.94% 13.05% $28,343
- --------------------------------------------------------------------------------
Class C Shares** 2/1/98 0.86% 15.17% 13.28% $28,846
- --------------------------------------------------------------------------------
Advisor Shares*** 2/1/98 -2.00% 14.79% 13.06% $28,355
- --------------------------------------------------------------------------------
Russell Micro
Cap(R) Index 1 2.79% 11.20% N/A $17,126
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index 1 6.93% 13.28% 10.68% $23,700
- --------------------------------------------------------------------------------
Lipper Small-Cap
Value Funds Average 1 3.83% 11.70% 9.81% $22,445
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MICRO CAP
VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH
THIRD/MAXUS AGGRESSIVE VALUE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
FEBRUARY 1, 1998. THE INCEPTION DATE FOR CLASS A, CLASS B AND CLASS C SHARES IS
AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS A, CLASS B
AND CLASS C SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS
ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS A, CLASS B
AND CLASS C SHARES. FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED
PERFORMANCE OF THE MICRO CAP VALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE
OF THE FIFTH THIRD/MAXUS AGGRESSIVE VALUE FUND INVESTOR SHARES WITH AN INCEPTION
DATE OF FEBRUARY 1, 1998. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES
WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR
REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
Input/Output, Inc...................................................... 1.79%
Apogee Enterprises, Inc................................................ 1.63%
SonicWALL, Inc......................................................... 1.53%
National Dentex Corp................................................... 1.44%
OSI Systems, Inc....................................................... 1.44%
EFJ, Inc............................................................... 1.41%
National Atlantic Holdings Corp........................................ 1.35%
Hartmarx Corp.......................................................... 1.34%
Symmetricom, Inc....................................................... 1.34%
Texas United Bancshares, Inc........................................... 1.30%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
16
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MICRO CAP VALUE FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Micro
Cap Value Fund Russell 2000(R) Russell Micro Lipper Small-Cap
(Institutional Shares) Value Index Cap(R) Index Value Funds Average
---------------------- --------------- ---------------- --------------------
2/1/98 10000 10000 10000
10480 11035 11123
10280 10636 10516
8380 8735 8371
12/98 9713 9527 9424
10217 8604 8418
12393 10028 9980
11305 9244 9253
12/99 11799 9385 9756
13004 9744 10152
12373 9934 10000 10206
12562 10663 9953 10980
12/00 11654 11528 8695 11513
12708 11640 8684 11513
14845 12994 10603 13066
12636 11262 8444 11343
12/01 14323 13144 10225 13307
15819 14403 10625 14410
15843 14098 10255 13801
12565 11097 7960 11205
12/02 14358 11643 8578 11768
14190 11051 8361 11138
18641 13562 10743 13346
20867 14610 12279 14333
12/03 24323 17001 14271 16611
26445 18178 15200 17640
27127 18332 14933 17924
26445 18359 14103 17767
12/04 29975 20783 16288 19995
28842 19957 15076 19642
27654 20970 15555 20210
29462 21618 16496 21206
12/05 29881 21762 16704 21369
33034 24701 19065 23789
31454 24033 17774 23006
7/31/06 30252 23700 17126 22445
- --------------------------------------------------------------------------------
The Russell Micro Cap(R) Index is a subset of the the Russell 2000(R) Value
Index. The Russell Micro Cap(R) Index has no historical performance prior to
June 2000, therefore the ending value for this index was not calculated from the
inception date of the Fund. The Russell 2000(R) Value Index and the Lipper
Small-Cap Value Funds Average are calculated from the inception date of the
Fund.
- --------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 2000(R) Value
Index, the Russell Micro Cap(R) Index and the Lipper Small-Cap Value Funds
Average. The Russell 2000(R) Value Index measures the performance of those
Russell 2000(R) companies with a less-than-average growth orientation. The
Russell Micro Cap(R) Index is a subset of the Russell 2000(R) Value Index.
This custom index consists of the smallest one-half of the stocks in the
Russell 2000(R) Value Index using market capitalization as of June 30, of
each year after the Russell reconstitution of the Russell 2000(R) Value
Index. The Lipper Small-Cap Value Funds Average is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The Russell 2000(R)Value Index and the Russell Micro Cap(R) Index are
unmanaged and do not reflect the deduction of fees associated with a
mutual fund such as investment management and fund accounting fees.
However, the Lipper Small-Cap Value Funds Average and the Fund's
performance reflect the deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they can invest in
its underlying mutual funds or securities.
2 The ending value represents the value of a $ 10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Small Cap Value
Fund (Institutional Shares) returned 2.62% on a net of fee basis, lagging its
benchmark, the Russell 2000(R) Value Index, which gained 6.93%.
A strong economy, which led to rising inflationary pressures, caused the Federal
Reserve to keep ratcheting up its core lending rate during the period. Through
much of the first six months of the period, the fallout proved advantageous to
small cap value stocks, but the tide turned during the first quarter of 2006. As
many investors focused on global growth prospects, information technology (IT),
materials and industrials sector stocks that were too expensive, relative to the
Fund's value discipline, led the market.
Complicating matters, IT positions that did fit the Fund's investment profile
struggled in the market shift, although the group rallied somewhat through the
final quarter. Poor stock selection in the software and semiconductor spaces
proved especially detrimental.+
The materials sector also weighed on returns as the Fund held little exposure to
the industrial metals group, which performed well but was quite highly valued.
Some buying opportunities within the sector did arise in the paper, chemicals
and alternative fuels groups.+
Lifting returns was the Fund's energy sector stake, where a shift from oilfield
service providers to tankers enhanced solid gains. Consumer discretionary sector
positions in the apparel manufacturing industry and retail group, which
experienced significant consolidation during the period, boosted results as
well. By the period's close, however, expectations for an economic slowdown
prompted a reduction in discretionary names with a tighter focus on more
defensive names.+
Additionally, the Fund's exposure to the consumer staples sector, which tends to
offer more consistent returns, was increased through an assortment of new food,
beverage and retail positions. As part of its more defensive stance, the Fund's
dividend yield increased significantly through the period's closing months.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- -------- --------- ---------
Institutional Shares 4/1/03 2.62% 18.90% $17,803
- --------------------------------------------------------------------------------
Class A Shares* 4/1/03 -2.74% 16.77% $16,761
- --------------------------------------------------------------------------------
Class B Shares** 4/1/03 -2.94% 17.12% $16,930
- --------------------------------------------------------------------------------
Class C Shares** 4/1/03 1.59% 17.68% $17,202
- --------------------------------------------------------------------------------
Advisor Shares*** 4/1/03 -1.23% 17.15% $16,945
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index 1 6.93% 25.72% $21,445
- --------------------------------------------------------------------------------
Lipper Small-Cap
Core Funds Average 1 3.67% 22.30% $19,661
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
EnerSys................................................................ 2.19%
Platinum Underwriters Holdings......................................... 1.86%
Quebecor World, Inc.................................................... 1.73%
Coca-Cola Femsa, SA de CV ADR ......................................... 1.73%
Kindred Healthcare, Inc................................................ 1.72%
Irwin Financial Corp................................................... 1.72%
Tsakos Energy Navigation, Ltd.......................................... 1.65%
Iowa Telecommunications Services....................................... 1.64%
Molina Healthcare, Inc................................................. 1.59%
Schweitzer-Mauduit International....................................... 1.56%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
18
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Small Lipper Small-Cap
Cap Value Fund Russell 2000(R) Core Funds
(Institutional Shares) Value IndeX Average
---------------------- --------------- ----------------
4/1/03 10000 10000 10000
11240 12272 12143
11860 13220 13130
12/03 13841 15384 15100
14837 16449 16004
14732 16588 16167
14346 16613 15847
12/04 15471 18806 17925
16041 18058 17327
16520 18975 17919
16741 19562 18882
12/05 17326 19692 19101
18519 22351 21391
18281 21747 20392
7/31/06 17803 21445 19661
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 2000(R) Value Index
and the Lipper Small-Cap Core Funds Average. The Russell 2000(R) Value
Index measures the performance of those Russell 2000(R) companies with a
less-than-average growth orientation. Companies in this index generally
have low price-to-book and price-to-earnings ratios. The Lipper Small-Cap
Core Funds Average is representative of the average of the total returns
reported by all of the mutual funds designated by Lipper, Inc., which fell
into this category.
The Russell 2000(R) Value Index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper Small-Cap Core
Funds Average and the Fund's performance reflect the deduction of fees for
these value-added services. Investors cannot invest directly in an index,
although they can invest in its underlying mutual funds or securities.
2 The ending value represents the value of a $ 10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MULTI CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Multi Cap Value
Fund (Institutional Shares) advanced 8.38%, underperforming its benchmarks, the
Russell 3000(R)Value Index and the Russell MidCap(R) Value Index, which returned
I 1.16% and 8.44%, respectively.
Shaken by the Gulf Coast hurricanes through the early months of the period and
enthusiastic about a bounce back in economic growth during the middle portion,
investors grew somber through the closing months. While the Federal Reserve
warned about inflationary pressures--and kept raising interest rates to counter
such conditions --economically sensitive stocks fell out of favor, replaced by
defensive issues.
Concurrently, large capitalization stocks outperformed small and medium cap
stocks, reversing a 5-year trend. Having recognized the likelihood of this
shift, based on historical patterns, early in the period, the average weighted
market cap of the Fund's holdings was pushed from $35 billion to $63 billion
over the 12-months. Although this added to gains late in the period, it wasn't
enough to overcome underperformance by select stocks and sectors.
Detractors included the information technology sector, where stakes in
semiconductor-related companies and auto industry suppliers diminished returns
from an overweight position, relative to the benchmark.
Larger-than-the benchmark stakes in the healthcare and industrials sectors
offered mixed results. Early in the period, managed care stocks added to
relative performance, as did industrial services and manufacturing companies
poised to benefit from a post-hurricane season renewal in economic activity.
Later on, however, hospital stocks hindered gains and small cap industrial
services and manufacturing holdings weighed as investors sought the relative
safety of large non-cyclical companies.+
Energy sector investments lifted the Fund, enhanced by a mid-period shift from
oil service firms to refining and marketing companies. Strong performance from
retailer stocks--bolstered by companies that were acquired and a modest recovery
in beaten-down discount chains--provided gains from the consumer discretionary
sector.+
Considering the economic and consumer uncertainties that emerged even before the
market's late-period slump, the Fund's exposure to discretionary stocks was
pared back during the period. Conversely, its stake in the financial services
sector, which stands to benefit from the ultimate end of the Fed's rate-hike
campaign, was increased significantly.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares 8.38% 10.19% 12.54% $32,596
- --------------------------------------------------------------------------------
Class A Shares* 2.74% 8.77% 11.74% $30,337
- --------------------------------------------------------------------------------
Class B Shares** 2.43% 8.84% 11.92% $30,831
- --------------------------------------------------------------------------------
Class C Shares** 7.33% 9.11% 11.91% $30,813
- --------------------------------------------------------------------------------
Advisor Shares*** 4.37% 8.91% 11.81% $30,542
- --------------------------------------------------------------------------------
Russell 3000(R)
Value Index 1 11.16% 7.88% 11.65% $30,098
- --------------------------------------------------------------------------------
Russell MidCap(R)
Value Index 1 8.44% 12.98% 14.08% $37,334
- --------------------------------------------------------------------------------
Lipper Multi-Cap
Value Funds Average 1 7.25% 6.29% 9.77% $25,762
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP
VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH
THIRD/MAXUS EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF APRIL 1,
1999. PRIOR TO APRIL 1, 1999, THE QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF
THE FIFTH THIRD/MAXUS EQUITY FUND INVESTOR SHARES WITH AN INCEPTION DATE OF
SEPTEMBER 30, 1989. THE INCEPTION DATE FOR THE CLASS A, CLASS B AND CLASS C
SHARES IS AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS
A SHARES REFLECTS PERFORMANCE OF THE ADVISOR SHARES AND IS ADJUSTED FOR MAXIMUM
SALES CHARGES. THE QUOTED PERFORMANCE OF CLASS B AND CLASS C SHARES REFLECTS THE
PERFORMANCE OF THE MULTI CAP VALUE FUND ADVISOR SHARES AND IS ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES.
PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP VALUE FUND
ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/ MAXUS EQUITY FUND
INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. DURING THE PERIOD
SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS
EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
J.P. Morgan Chase & Co................................................. 2.34%
Marathon Oil Corp...................................................... 2.20%
Verizon Communications, Inc............................................ 2.19%
American International Group, Inc...................................... 2.14%
Exxon Mobil Corp....................................................... 2.14%
Bank of America Corp................................................... 1.99%
ConocoPhillips......................................................... 1.94%
Pfizer, Inc............................................................ 1.92%
Bank of New York Co., Inc.............................................. 1.81%
Safeway, Inc........................................................... 1.44%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
20
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MULTI CAP VALUE FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Multi
Cap Value Fund Russell 3000(R) Russell MidCap(R) Lipper Multi-Cap
(Institutional Shares) Value Index Value Index Value Funds Average
---------------------- --------------- ---------------- --------------------
7/31/96 10000 10000 10000 10000
10705 10697 10802 10726
12/96 11715 11766 11733 11607
12020 12033 11933 11773
13759 13811 13436 13376
15352 15226 15149 14777
12/97 15013 15863 15765 14774
16133 17661 17341 16481
15577 17672 16895 16224
12297 15525 14588 13815
12/98 13701 18005 16567 15986
13788 18105 16051 16029
16369 20214 17846 17858
14889 18263 15947 15991
12/99 15493 19203 16549 17068
17462 19339 16715 17136
17320 18520 16434 16711
18197 19970 18021 17880
12/00 19174 20746 19723 18680
18917 19625 19026 17959
20049 20675 20367 19075
17428 18377 18014 16574
12/01 20697 19847 20181 18523
20654 20738 21775 19109
18934 19073 20758 17051
15961 15457 17031 13965
12/02 17421 16834 18235 15071
16296 16012 17495 14303
20081 18839 20626 16872
21157 19305 21851 17438
12/03 24503 22075 25176 19880
25568 22810 26522 20571
25637 23010 26981 20742
25294 23338 27449 20628
12/04 28278 25816 31144 22778
28172 25747 31386 22642
28759 26253 32862 23093
30049 27254 34621 24007
12/05 30449 27584 35083 24491
32974 29403 37756 25856
32520 29487 37546 25650
7/31/06 32596 30098 37334 25762
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell 3000(R) Value
Index, the Russell MidCap(R) Value Index and the Lipper Multi-Cap Value
Funds Average. The Russell 3000(R) Value Index measures the performance of
those companies in the Russell 3000(R) Index with lower price-to-book
ratios and lower forecasted growth values. The Russell MidCap(R) Value
Index measures the performance of those Russell mid cap companies with
lower price-to-book ratios and lower forecasted growth values. The Lipper
Multi-Cap Value Funds Average is representative of the average of the
total returns reported by all of the mutual funds designated by Lipper,
Inc., which fell into this category.
The Russell 3000(R) Value and the Russell MidCap(R) Value Indices are
unmanaged and do not reflect the deduction of fees associated with a
mutual fund such as investment management and fund accounting fees.
However, the Lipper Multi-Cap Value Funds Average and the Fund's
performance reflect the deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they can invest in
its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Disciplined Large
Cap Value Fund (Institutional Shares) returned 9.29% on a net of fee basis,
underperforming its benchmark, the Russell 1000(R) Value Index, which returned
11.59%.
Euphoria over the possible end to the Federal Reserve's tightening cycle reigned
in the fourth quarter of 2005 and fueled a market shift away from higher quality
stocks, which hindered the Fund's performance. Although the broader sentiment
reversed course again in May 2006, and investors sought out more defensive
names, the Fund's outperformance during the final months of the period wasn't
enough to fully offset the earlier underperformance.
Adverse stock selection in the materials, telecommunication services and
healthcare sectors hindered performance. In materials, the Fund held an
overweight stake, relative to the benchmark, in chemical stocks, which corrected
on concerns over margin pressure from rising input costs. Also weighing on
returns was an overweight stake in the industrials sector, mitigated by good
stock selection in the capital goods and commercial services groups.+
The Fund's significant underweight in financials, which performed well despite a
rising-rate environment, diminished returns. The impact, however, was dwarfed by
the outperformance resulting from strong stock selection among capital market
and brokerage holdings.+
An overweight position in consumer staples, which rallied in the late-period
search for stability, enhanced returns. In addition, effective stock picks
within the sector's tobacco and grocery store groups bolstered results.+
At the period's close, the Fund's emphasis was on stocks that tend to outperform
late in economic cycles--and not on interest-rate sensitive stocks. Remaining
similar to the benchmark in traditional value measures such as price-book ratio
and average yield, the Fund's price-earnings ratio was actually lower than the
benchmark--a deeper value indicator--and its average weighted market cap was
modestly smaller.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT
RECOGNIZE THEIR INTRINSIC VALUE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- --------- ---------
Institutional Shares 9.29% 8.18% 10.35% $26,767
- --------------------------------------------------------------------------------
Class A Shares* 3.61% 6.80% 9.55% $24,899
- --------------------------------------------------------------------------------
Class B Shares** 3.34% 6.81% 9.32% $24,383
- --------------------------------------------------------------------------------
Class C Shares** 8.21% 7.08% 9.35% $24,449
- --------------------------------------------------------------------------------
Advisor Shares*** 5.16% 6.92% 9.48% $24,735
- --------------------------------------------------------------------------------
Russell 1000(R)
Value Index 1 11.59% 7.46% 11.54% $29,815
- --------------------------------------------------------------------------------
Lipper Equity
Income Funds Average 1 8.32% 5.52% 9.07% $24,151
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
ConocoPhillips......................................................... 3.47%
Chevron Corp........................................................... 3.30%
MetLife, Inc........................................................... 3.23%
J.P. Morgan Chase & Co................................................. 3.23%
Exxon Mobil Corp....................................................... 2.98%
Morgan Stanley......................................................... 2.92%
Marathon Oil Corp...................................................... 2.85%
Bank of America Corp................................................... 2.75%
SunTrust Banks, Inc.................................................... 2.72%
UST, Inc............................................................... 2.70%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
22
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third
Disciplined Large Lipper Equity
Cap Value Fund Russell 1000(R) Income Funds
(Institutional Shares) Value Index Average
---------------------- --------------- ----------------
7/31/96 10000 10000 10000
10714 10695 10580
12/96 11466 11762 11347
11714 12063 11533
13504 13842 12939
14485 15220 13887
12/97 15841 15900 14402
17673 17754 15772
17434 17833 15630
16359 15767 14374
12/98 18697 18385 16204
17909 18649 16067
19278 20752 17614
17082 18719 16205
12/99 17817 19736 16848
16612 19830 16875
17719 18901 16651
19020 20387 17881
12/00 20087 21121 18572
17929 19884 17625
18328 20855 18294
16660 18571 16687
12/01 17606 19940 17734
17900 20756 18346
16142 18988 16724
13904 15423 13922
12/02 15191 16845 14986
14388 16025 14235
17132 18793 16461
17679 19181 16760
12/03 20377 21903 18901
20964 22567 19323
21476 22765 19508
21648 23117 19595
12/04 23174 25516 21366
23265 25538 21330
23534 25966 21594
24735 26974 22385
12/05 24560 27316 22642
26000 28937 23741
26349 29107 23785
7/31/06 26767 29815 24151
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Russell l000(R) Value Index
and the Lipper Equity Income Funds Average. The Russell l000(R) Value
Index measures the performance of 1,000 securities found in the Russell
universe with a less-than-average growth orientation. Companies in this
index generally have low price-to-book and price-to-earning ratios, higher
dividend yields and lower forecasted growth values. The Lipper Equity
Income Funds Average is representative of the average of the total returns
reported by all of the mutual funds designated by Lipper, Inc., which fell
into this category.
The Russell l000(R) Value Index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper Equity Income
Funds Average and the Fund's performance reflect the deduction of fees for
these value-added services. Investors cannot invest directly in an index,
although they can invest in its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third LifeModel
Aggressive Fund SM (Institutional Shares) returned 5.13% on a net of fee basis,
while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers
Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%,
respectively.
During the period, equity investors logged subdued returns in the face of
continued headwinds from the Federal Reserve and crude oil markets--a pair of
forces that have stymied investors for two years. Within the most recent
12-month period, the Fed raised its key Federal Funds rate eight times--pushing
it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel.
The combination of forces pressured price-to-earnings multiples for the major
stock indices, even though corporate profits continued to grow at a robust pace.
As a result, the broader domestic stock indices posted returns in the 5% range
for the period.
The global MSCI EAFE Index, by comparison, returned 24.51 %, a positive
development for the Fund, which had elevated its exposure to international
equities early in the period. Also aiding performance was the decision to
increase the Fund's allocation to the short-term Money Market Fund in early
2006.+
In general, the Fund maintained a bias toward large capitalization stocks and a
defensive posture in the bond portfolio throughout the period. Both approaches
represented a more conservative stance in acknowledgement of the dual risks of
rising energy prices and an active Federal Reserve.+
Shortly after the period's close, the Fed halted its rate-hike campaign, a
development which could prove beneficial for both stock and bond investors.
Still risky, however, were volatile energy markets.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------- --------- ---------
Institutional Shares 8/1/02 5.13% 12.12% $15,797
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -0.41% 10.37% $14,836
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -0.90% 10.41% $14,859
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 4.11% 10.98% $15,166
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 1.23% 10.63% $14,977
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.22% 12.23% $15,863
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 1.78% 3.73% $11,579
- --------------------------------------------------------------------------------
LifeModel Aggressive
Target Neutral Asset Class
Index Blend 3 4.90% 11.43% $15,419
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
[BAR CHART]
Fifth Third Quality Growth Fund 23.38%
Fifth Third Disciplined Large Cap Value Fund 18.13%
Fifth Third Large Cap Core Fund 14.19%
Fifth Third International Equity Fund 11.70%
Fifth Third Mid Cap Growth Fund 8.97%
Fifth Third Institutional Money Market Fund 8.13%
Fifth Third Multi Cap Value Fund 7.21%
Fifth Third Small Cap Growth Fund 4.48%
Fifth Third Small Cap Value Fund 3.81%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
24
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lehman Brothers LifeModel
Fifth Third LifeModel Dow Jones Intermediate Aggressive Target
Aggressive Fund SM Wilshire 5000 Government/Credit Neutral Asset Class
(Institutional Shares) Index Bond Index Index Blend
---------------------- --------------- ----------------- -------------------
8/1/02 10000 10000 10000 10000
9070 9049 10331 9177
12/02 9798 9757 10506 9844
9346 9456 10664 9585
10990 11017 10954 11030
11562 11425 10952 11400
12/03 13136 12845 10959 12671
13455 13179 11230 12999
13491 13349 10946 13117
13062 13111 11242 12943
12/04 14267 14466 11292 14149
14010 14120 11193 13833
14399 14469 11471 14176
15038 15032 11412 14666
12/05 15344 15381 11470 14980
16372 16231 11426 15719
15981 15921 11450 15452
7/31/06 15797 15863 11579 15419
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Dow Jones Wilshire 5000
Index, and the Lehman Brothers Intermediate Government/Credit Bond Index.
The Dow Jones Wilshire 5000 Index measures the performance of all U.S.
headquartered equity securities with readily available price data. The
Lehman Brothers Intermediate Government/Credit Bond Index is composed of
investment grade corporate debt issues as well as debt issues of U.S.
government agencies and the U.S. Treasury. The debt issues all maintain
maturities within a range of one to ten years.
The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index are unmanaged and do not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Fund's performance
reflects the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
3 The LifeModel Aggressive Target Neutral Asset Class Index Blend is an
unmanaged custom-blended index, created by Fifth Third Asset Management,
Inc., comprised of the Dow Jones Wilshire 5000 Index (90%) and the Lehman
Brothers Intermediate Government/Credit Bond Index (10%). The LifeModel
Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend
only and does not represent underlying allocations in the Fund.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third LifeModel
Moderately Aggressive Fund SM (Institutional Shares) returned 4.60% on a net of
fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman
Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%,
respectively.
During the period, equity investors logged subdued returns in the face of
continued headwinds from the Federal Reserve and crude oil markets--a pair of
forces that have stymied investors for two years. Within the most recent
12-month period, the Fed raised its key Federal Funds rate eight times--pushing
it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel.
The combination of forces pressured price-to-earnings multiples for the major
stock indices, even though corporate profits continued to grow at a robust pace,
while bond yields generally advanced. As a result, the broader domestic stock
indices posted returns in the 5% range and major bond indices gained around 2%
for the period.
The global MSCI EAFE Index, by comparison, returned 24.51 %, a positive
development for the Fund, which had elevated its exposure to international
equities early in the period. Also aiding performance was the decision to
initiate a modest position in the Fifth Third High Yield Bond Fund in December
2005 as well as the decision to increase the Fund's allocation to the short-term
Money Market Fund in early 2006.+
In general, the Fund maintained a bias toward large capitalization stocks and a
defensive posture in the bond portfolio throughout the period. Both approaches
represented a more conservative stance in acknowledgement of the dual risks of
rising energy prices and an active Federal Reserve.+
Shortly after the period's close, the Fed halted its rate-hike campaign, a
development which could prove beneficial for both stock and bond investors.
Still risky, however, were volatile energy markets.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------- --------- ---------
Institutional Shares 8/1/02 4.60% 11.36% $15,376
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -0.85% 9.67% $14,462
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -1.37% 9.72% $14,488
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 3.53% 10.27% $14,783
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 0.71% 9.89% $14,581
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.22% 12.23% $15,863
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 1.78% 3.73% $11,579
- --------------------------------------------------------------------------------
LifeModel Moderately
Aggressive Target Neutral
Asset Class Index Blend 3 4.23% 9.80% $14,537
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
[BAR CHART]
Fifth Third Quality Growth Fund 18.84%
Fifth Third Disciplined Large Cap Value Fund 14.62%
Fifth Third Large Cap Core Fund 10.76%
Fifth Third International Equity Fund 10.35%
Fifth Third Intermediate Bond Fund 7.53%
Fifth Third Mid Cap Growth Fund 6.63%
Fifth Third Multi Cap Value Fund 5.60%
Fifth Third Institutional Money Market Fund 5.52%
Fifth Third High Yield Bond Fund 5.40%
Fifth Third Short Term Bond Fund 5.12%
Fifth Third Bond Fund 4.19%
Fifth Third Small Cap Growth Fund 3.00%
Fifth Third Small Cap Value Fund 2.44%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Lehman Brothers LifeModel Moderately
LifeModel Moderately Dow Jones Intermediate Aggressive Target
Aggressive Fund Wilshire Government/Credit Neutral Asset Class
(Institutional Shares) 5000 Index Bond Index Index Blend
---------------------- --------------- ----------------- --------------------
8/1/02 10000 10000 10000 10000
9700 9049 10331 9432
12/02 10290 9757 10506 10009
10011 9456 10664 9837
11406 11017 10954 11043
11866 11425 10952 11333
12/03 13125 12845 10959 12311
13421 13179 11230 12628
13385 13349 10946 12646
13117 13111 11242 12591
12/04 14086 14466 11292 13511
13871 14120 11193 13252
14234 14469 11471 13582
14710 15032 11412 13933
12/05 14956 15381 11470 14182
15757 16231 11426 14712
15475 15921 11450 14526
7/31/06 15376 15863 11579 14537
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Dow Jones Wilshire 5000
Index, and the Lehman Brothers Intermediate Government/Credit Bond Index.
The Dow Jones Wilshire 5000 Index measures the performance of all U.S.
headquartered equity securities with readily available price data. The
Lehman Brothers Intermediate Government/Credit Bond Index is composed of
investment grade corporate debt issues as well as debt issues of U.S.
government agencies and the U.S. Treasury. The debt issues all maintain
maturities within a range of one to ten years.
The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index are unmanaged and do not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Fund's performance
reflects the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
3 The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend
is an unmanaged custom-blended index, created by Fifth Third Asset
Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (70%) and
the Lehman Brothers Intermediate Government/Credit Bond Index (30%). The
LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is
a hypothetical blend only and does not represent underlying allocations in
the Fund.
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATE FUND SM
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third LifeModel Moderate
Fund SM (Institutional Shares) returned 3.90% on a net of fee basis, while its
benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers Intermediate
Government/Credit Bond Index, advanced 5.22% and 1.78%, respectively.
During the period, equity investors logged subdued returns in the face of
continued headwinds from the Federal Reserve and crude oil markets--a pair of
forces that have stymied investors for two years. Within the most recent
12-month period, the Fed raised its key Federal Funds rate eight times--pushing
it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel.
The combination of forces pressured price-to-earnings multiples for the major
stock indices, even though corporate profits continued to grow at a robust pace,
while bond yields generally advanced. As a result, the broader domestic stock
indices posted returns in the 5% range and major bond indices gained around 2%
for the period.
The global MSCI EAFE Index, by comparison, returned 24.51%, a positive
development for the Fund, which had elevated its exposure to international
equities early in the period. Also aiding performance was the decision to
initiate a modest position in the Fifth Third High Yield Bond Fund for
diversification purposes in December 2005 as well as the decision to increase
the Fund's allocation to the short-term Money Market Fund in early 2006.+
In general, the Fund maintained a bias toward large capitalization stocks and a
defensive posture in the bond portfolio throughout the period. Both approaches
represented a more conservative stance in acknowledgement of the dual risks of
rising energy prices and an active Federal Reserve.+
Shortly after the period's close, the Fed halted its rate-hike campaign, a
development which could prove beneficial for both stock and bond investors.
Still risky, however, were volatile energy markets.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------- --------- ---------
Institutional Shares 8/1/02 3.90% 8.52% $13,865
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -1.55% 6.85% $13,033
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -2.14% 6.83% $13,021
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 2.88% 7.46% $13,331
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 -0.08% 7.05% $13,129
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.22% 12.23% $15,863
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 1.78% 3.73% $11,579
- --------------------------------------------------------------------------------
LifeModel Moderate Target
Neutral Asset Class Index
Blend 3 3.55% 8.13% $13,668
- --------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE
VISIT WWW.53.COM.
* 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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
[BAR CHART]
Fifth Third Intermediate Bond Fund 15.99%
Fifth Third Quality Growth Fund 13.97%
Fifth Third Short Term Bond Fund 10.94%
Fifth Third Disciplined Large Cap Value Fund 10.53%
Fifth Third Bond Fund 9.03%
Fifth Third Large Cap Core Fund 8.48%
Fifth Third International Equity Fund 8.02%
Fifth Third High Yield Bond Fund 5.45%
Fifth Third Mid Cap Growth Fund 4.85%
Fifth Third Institutional Money Market Fund 4.81%
Fifth Third Multi Cap Value Fund 3.92%
Fifth Third Small Cap Growth Fund 2.08%
Fifth Third Small Cap Value Fund 1.93%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
28
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATE FUND SM
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lehman Brothers LifeModel
Fifth Third LifeModel Dow Intermediate Moderate Target
Moderate Fund Jones Wilshire Government/Credit Neutral Asset
(Institutional Shares) 5000 Index Bond Index Class Index Blend
---------------------- --------------- ----------------- --------------------
8/1/02 10000 10000 10000 10000
9594 9049 10331 9687
12/02 10053 9757 10506 10164
9894 9456 10664 10083
10944 11017 10954 11039
11269 11425 10952 11247
12/03 12129 12845 10959 11938
12449 13179 11230 12242
12367 13349 10946 12166
12220 13111 11242 12223
12/04 12892 14466 11292 12873
12736 14120 11193 12665
13045 14469 11471 12981
13354 15032 11412 13202
12/05 13547 15381 11470 13391
14078 16231 11426 13732
13876 15921 11450 13617
7/31/06 13865 15863 11579 13668
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Dow Jones Wilshire 5000
Index, and the Lehman Brothers Intermediate Government/Credit Bond Index.
The Dow Jones Wilshire 5000 Index measures the performance of all U.S.
headquartered equity securities with readily available price data. The
Lehman Brothers Intermediate Government/Credit Bond Index is composed of
investment grade corporate debt issues as well as debt issues of U.S.
government agencies and the U.S. Treasury. The debt issues all maintain
maturities within a range of one to ten years.
The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index are unmanaged and do not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Fund's performance
reflects the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
3 The LifeModel Moderate Target Neutral Asset Class Index Blend is an
unmanaged custom-blended index, created by Fifth Third Asset Management,
Inc., comprised of the Dow Jones Wilshire 5000 Index (50%) and the Lehman
Brothers Intermediate Government/Credit Bond Index (50%). The LifeModel
Moderate Target Neutral Asset Class Index Blend is a hypothetical blend
only and does not represent underlying allocations in the Fund.
29
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third LifeModel
Moderately Conservative Fund SM (Institutional Shares) returned 3.39% on a net
of fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman
Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%,
respectively.
During the period, bond investors netted lackluster returns that trailed the
rate of inflation in the face of continued headwinds from the Federal Reserve
and crude oil markets--a pair of forces that have stymied investors for two
years. Within the most recent 12-month period, the Fed raised its key Federal
Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24%
to more than $70 a barrel.
The combination of forces generally lifted bond yields higher while pressuring
price-to-earnings multiples for the major stock indices. As a result, the major
bond indices gained around 2% for the period while the broader domestic stock
indices posted returns in the 5% range.
The Fund's diversified stock portfolio enhanced performance during the period,
especially within its international exposure, which was increased early on.+
Further bolstering returns was the addition of a modest position in the Fifth
Third High Yield Bond Fund for diversification purposes in December 2005 as well
as the decision to increase the Fund's allocation to the short-term Money Market
Fund in early 2006.+
In general, the Fund maintained a defensive posture in the bond portfolio and a
large capitalization bias in the stock portfolio throughout the period. Both
approaches represented a more conservative stance in acknowledgement of the dual
risks of rising energy prices and an active Federal Reserve.+
Shortly after the period's close, the Fed halted its rate-hike campaign, a
development which could prove beneficial for both bond and stock investors.
Still risky, however, were volatile energy markets.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------- --------- ---------
Institutional Shares 8/1/02 3.39% 6.96% $13,084
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -2.02% 5.33% $12,306
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -2.61% 5.25% $12,270
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 2.43% 5.91% $12,581
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 -0.51% 5.53% $12,399
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.22% 12.23% $15,863
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 1.78% 3.73% $11,579
- --------------------------------------------------------------------------------
LifeModel Moderately
Conservative Target Neutral
Asset Class Index Blend 3 3.21% 7.27% $13,239
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
[BAR CHART]
Fifth Third Intermediate Bond Fund 21.11%
Fifth Third Short Term Bond Fund 13.62%
Fifth Third Quality Growth Fund 11.49%
Fifth Third Bond Fund 11.29%
Fifth Third Disciplined Large Cap Value Fund 9.29%
Fifth Third International Equity Fund 7.79%
Fifth Third Institutional Money Market Fund 6.99%
Fifth Third Large Cap Core Fund 6.04%
Fifth Third High Yield Bond Fund 4.87%
Fifth Third Mid Cap Growth Fund 3.11%
Fifth Third Multi Cap Value Fund 2.62%
Fifth Third Small Cap Growth Fund 0.98%
Fifth Third Small Cap Value Fund 0.80%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
30
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third LifeModel Lehman Brothers LifeModel Moderately
Moderately Dow Jones Intermediate Conservative Target
Conservative Fund Wilshire 5000 Government/Credit Neutral Asset Class
(Institutional Shares) Index Bond Index Blend Index
---------------------- --------------- ----------------- --------------------
8/1/02 10000 10000 10000 10000
9517 9049 10331 9816
12/02 9958 9757 10506 10237
9844 9456 10664 10203
10726 11017 10954 11030
10988 11425 10952 11197
12/03 11674 12845 10959 11747
11925 13179 11230 12045
11817 13349 10946 11924
11751 13111 11242 12033
12/04 12291 14466 11292 12554
12158 14120 11193 12370
12437 14469 11471 12679
12673 15032 11412 12839
12/05 12822 15381 11470 12999
13217 16231 11426 13254
13073 15921 11450 13170
7/31/06 13084 15863 11579 13239
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Dow Jones Wilshire 5000
Index, and the Lehman Brothers Intermediate Government/Credit Bond Index.
The Dow Jones Wilshire 5000 Index measures the performance of all U.S.
headquartered equity securities with readily available price data. The
Lehman Brothers Intermediate Government/Credit Bond Index is composed of
investment grade corporate debt issues as well as debt issues of U.S.
government agencies and the U.S. Treasury. The debt issues all maintain
maturities within a range of one to ten years.
The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index are unmanaged and do not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Fund's performance
reflects the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
3 The LifeModel Moderately Conservative Target Neutral Asset Class Index
Blend is an unmanaged custom-blended index, created by Fifth Third Asset
Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (40%) and
the Lehman Brothers Intermediate Government/Credit Bond Index (60%). The
LifeModel Moderately Conservative Target Neutral Asset Class Index Blend
is a hypothetical blend only and does not represent underlying allocations
in the Fund.
31
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third LifeModel
Conservative Fund SM (Institutional Shares) returned 2.88% on a net of fee
basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman
Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%,
respectively.
During the period, bond investors netted lackluster returns that trailed the
rate of inflation in the face of continued headwinds from the Federal Reserve
and crude oil markets--a pair of forces that have stymied investors for two
years. Within the most recent 12-month period, the Fed raised its key Federal
Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24%
to more than $70 a barrel.
The combination of forces generally lifted bond yields higher, although the
yield curve flattened as short-term rates rose more than long-term yields.
Meanwhile, the major stock indices contended with pressure on price-to-earnings
multiples. As a result, the major bond indices gained around 2% for the period
while the broader domestic stock indices posted returns in the 5% range.
The Fund's limited--but diversified--stock portfolio enhanced performance during
the period, especially within its international exposure, which was increased
early on.+
Further bolstering returns was the addition of a modest position in the Fifth
Third High Yield Bond Fund for diversification purposes in December 2005 as well
as the decision to increase the Fund's allocation to the short-term Money Market
Fund in early 2006.+
In general, the Fund maintained a defensive posture in the bond portfolio and a
large capitalization bias in the stock portfolio throughout the period. Both
approaches represented a more conservative stance in acknowledgement of the dual
risks of rising energy prices and an active Federal Reserve.+
Shortly after the period's close, the Fed halted its rate-hike campaign, a
development which could prove beneficial for both bond and stock investors.
Still risky, however, were volatile energy markets.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY
RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING,
INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE
BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE
VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF
INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND
PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH
EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE 2
--------- ------- --------- ---------
Institutional Shares 8/1/02 2.88% 5.56% $12,415
- --------------------------------------------------------------------------------
Class A Shares* 8/1/02 -2.48% 3.93% $11,666
- --------------------------------------------------------------------------------
Class B Shares** 8/1/02 -3.07% 3.85% $11,628
- --------------------------------------------------------------------------------
Class C Shares** 8/1/02 1.72% 4.50% $11,923
- --------------------------------------------------------------------------------
Advisor Shares*** 8/1/02 -1.08% 4.14% $11,759
- --------------------------------------------------------------------------------
Dow Jones Wilshire
5000 Index 1 5.22% 12.23% $15,863
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 1.78% 3.73% $11,579
- --------------------------------------------------------------------------------
LifeModel Conservative
Target Neutral Asset Class
Index Blend 3 2.50% 5.52% $12,396
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
[BAR CHART]
Fifth Third Intermediate Bond Fund 30.00%
Fifth Third Short Term Bond Fund 19.94%
Fifth Third Bond Fund 17.57%
Fifth Third Quality Growth Fund 7.26%
Fifth Third Disciplined Large Cap Value Fund 5.78%
Fifth Third High Yield Bond Fund 5.04%
Fifth Third Institutional Money Market Fund 4.86%
Fifth Third International Equity Fund 3.47%
Fifth Third Large Cap Core Fund 2.82%
Fifth Third Mid Cap Growth Fund 0.97%
Fifth Third Multi Cap Value Fund 0.88%
Fifth Third Small Cap Growth Fund 0.78%
Fifth Third Small Cap Value Fund 0.63%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
32
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lehman Brothers LifeModel
Fifth Third LifeModel Dow Jones Intermediate Conservative Target
Conservative Fund SM Wilshire 5000 Government/Credit Neutral Asset Class
(Institutional Shares) Index Bond Index Index Blend
---------------------- --------------- ----------------- --------------------
8/1/02 10000 10000 10000 10000
9909 9049 10331 10073
12/02 10233 9757 10505 10377
10245 9456 10663 10437
10840 11017 10952 11000
10996 11425 10950 11082
12/03 11383 12845 10957 11356
11609 13179 11229 11641
11450 13349 10946 11436
11500 13111 11241 11643
12/04 11819 14466 11290 11919
11714 14120 11191 11779
11979 14469 11468 12073
12086 15032 11408 12118
12/05 12194 15381 11467 12225
12414 16231 11422 12321
12345 15921 11446 12295
7/31/06 12415 15863 11579 12396
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Dow Jones Wilshire 5000
Index, and the Lehman Brothers Intermediate Government/Credit Bond Index.
The Dow Jones Wilshire 5000 Index measures the performance of all U.S.
headquartered equity securities with readily available price data. The
Lehman Brothers Intermediate Government/Credit Bond Index is composed of
investment grade corporate debt issues as well as debt issues of U.S.
government agencies and the U.S. Treasury. The debt issues all maintain
maturities within a range of one to ten years.
The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate
Government/Credit Bond Index are unmanaged and do not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Fund's performance
reflects the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
3 The LifeModel Conservative Target Neutral Asset Class Index Blend is an
unmanaged custom-blended index, created by Fifth Third Asset Management,
Inc., comprised of the Dow Jones Wilshire 5000 Index (20%) and the Lehman
Brothers Intermediate Government/Credit Bond Index (80%). The LifeModel
Conservative Target Neutral Asset Class Index Blend is a hypothetical
blend only and does not represent underlying allocations in the Fund.
33
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Strategic Income
Fund (Institutional Shares) gained 2.61% on a net of fee basis, outperforming
its benchmark's, the Lehman Brothers Aggregate Bond Index and the Lehman
Brothers Intermediate Credit Bond Index, which returned 1.44% and 1.46%,
respectively. The Fund changed its benchmark index from the Lehman Brothers
Intermediate Credit Bond Index to the Lehman Brothers Aggregate Bond Index, in
order to better represent the Fund's investment policies for comparison
purposes.
A slight inversion of the yield curve, featuring higher short-term interest
rates than long-term yields, kept a lid on returns from income-generating
investments during the period. The Federal Reserve dominated the landscape with
eight straight quarter-point increases in its key overnight lending rate, which
pushed short-term yields from 3.25% to 5.25%. Meanwhile, longer-term issues
reflected growing concerns over an economic slowdown and rose modestly.
While anticipating that the Fed would remain vigilant throughout the period, the
Fund emphasized better-yielding vehicles such as real estate investment trusts
(REITs) and preferred stocks. In doing so, the Fund not only topped its
benchmark but it achieved its number one goal of providing a steady stream of
income for investors. Furthermore, within the period, the monthly average
dividend was increased, resulting in a yield of nearly 5%.
Strong fundamentals buoyed the Fund's REIT positions, which were concentrated in
the retail and industrial industries. Having rallied for nearly four years, many
REITs have attained rich valuations, which prompted a reduction in the Fund's
exposure during the period.+
Preferred stocks featuring floating rates--which have yields that generally move
upward with Fed rate hikes--and lower tax rates for taxable investors were the
focus of additions to the Fund during the period.
Detracting from performance were any holdings with maturation dates beyond 5
years, which struggled in the rising rate environment.+
At the period's end, the Fund's Money Market Fund position was larger than its
historical average, reflecting the better yield opportunities that existed at
the short end of the investment spectrum. The Fund finished the period with a 8%
turnover rate, another historically low figure that minimized capital gains and
trading costs throughout the year.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
--------- ------- --------- ---------
Institutional Shares 2.61% 6.51% 7.22% $20,087
- --------------------------------------------------------------------------------
Class A Shares* -2.79% 5.04% 6.41% $18,608
- --------------------------------------------------------------------------------
Class B Shares** -3.29% 5.15% 6.37% $18,544
- --------------------------------------------------------------------------------
Class C Shares** 1.62% 5.37% 6.32% $18,452
- --------------------------------------------------------------------------------
Advisor Shares*** -1.24% 5.28% 6.54% $18,838
- --------------------------------------------------------------------------------
Lehman Brothers Aggregate
Bond Index 1 1.46% 4.79% 6.33% $18,476
- --------------------------------------------------------------------------------
Lehman Brothers Intermediate
Credit Bond Index 1 1.44% 5.05% 6.35% $18,514
- --------------------------------------------------------------------------------
Lipper Flexible Income
Funds Average 1 0.30% 0.49% -0.50% $11,493
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 22, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD STRATEGIC INCOME FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE
FIFTH THIRD/ MAXUS INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
SEPTEMBER 1, 1998. PRIOR TO SEPTEMBER 1, 1998 THE QUOTED PERFORMANCE REFLECTS
THE PERFORMANCE FOR THE FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES. CLASS A,
CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON APRIL 1, 2004, APRIL 1,
2004 AND OCTOBER 29, 2001, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS A,
CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATES REPRESENT THE
PERFORMANCE FOR ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND
APPLICABLE SALES CHARGES FOR THE RESPECTIVE SHARE CLASS. PRIOR TO OCTOBER 22,
2001, THE QUOTED PERFORMANCE FOR ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE
FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES WITH AN INCEPTION DATE OF MARCH
10, 1985. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR
REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS
NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
FUND HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
[BAR CHART]
Corporate Bond Equivalents 34.46%
Corporate Bonds 23.55%
Investment Companies 8.38%
Common Stocks 6.88%
Preferred Stocks 6.76%
Real Estate Investment Trusts 6.59%
Investments in Affiliates 5.20%
Short-Term Securities Held as
Collateral for Securities Lending 4.11%
U.S. Government Agencies 2.89%
Foreign Bonds 1.18%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
34
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lehman Brothers
Fifth Third Strategic Intermediate Lehman Brothers Lipper Flexible
Income Fund Credit Bond Aggregate Bond Income Funds
(Institutional Shares) Index Index Average
---------------------- --------------- ----------------- --------------------
7/31/96 10000 10000 10000 10000
10228 10170 10157 10064
12/96 10517 10467 10462 10210
10740 10424 10403 10189
11124 10786 10785 10306
11512 11128 11144 10443
12/97 11723 11341 11472 10084
11994 11533 11650 10124
12043 11762 11922 10087
12030 12232 12427 10494
12/98 12141 12282 12468 10011
12061 12283 12407 9796
12426 12183 12298 9675
12028 12269 12381 9527
12/99 11446 12302 12366 9184
11930 12454 12639 9239
12643 12635 12859 9368
13017 13040 13247 9474
12/00 13338 13466 13804 9620
14064 14001 14223 10312
14530 14142 14303 10153
14776 14730 14962 10510
12/01 15089 14781 14969 10414
15289 14756 14983 10334
15710 15225 15537 10827
16020 15863 16249 11593
12/02 16275 16280 16504 11312
16599 16647 16734 11326
17494 17316 17153 11302
17382 17337 17128 11181
12/03 17956 17405 17182 11290
18632 17896 17638 11541
17763 17392 17207 11153
18633 17977 17758 11427
12/04 19198 18115 17927 11499
18773 17904 17841 11320
19470 18398 18378 11430
19498 18302 18254 11362
12/05 19569 18373 18363 11322
19871 18276 18244 11360
19738 18286 18230 11415
7/31/06 20087 18514 18476 11493
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers
Intermediate Credit Bond Index, the Lehman Brothers Aggregate Bond Index
and the Lipper Flexible Income Funds Average. The Lehman Brothers
Intermediate Credit Bond Index is generally representative of investment
grade corporate bonds with maturities from one to ten years. The Lehman
Brothers Aggregate Bond Index is generally representative of the bond
market as a whole. The Lipper Flexible Income Funds Average is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Intermediate Credit Bond Index and the Lehman Brothers
Aggregate Bond Index are unmanaged and do not reflect the deduction of
fees associated with a mutual fund such as investment management and fund
accounting fees. However, the Lipper Flexible Income Funds Average and the
Fund's performance reflect the deduction of fees for these value-added
services. Investors cannot invest directly in an index, although they can
invest in its underlying mutual funds or securities.
2 The Ending Value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
35
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
DIVIDEND GROWTH FUND
(FORMERLY KNOWN AS FIFTH THIRD SELECT STOCK FUND)
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Dividend Growth
Fund (Institutional Shares) gained 5.14% on a net of fee basis, trailing its
benchmark, the S&P 500(R) Index, which returned 5.38%. The Fund changed its
benchmark index from the Russell 1000(R) Index to the S&P 500(R) Index,
effective August 1, 2005, in order to better represent the Fund's investment
policies for comparison purposes.
Equity investors adopted a more cautionary stance beginning in mid-May as
concerns over a slowing economy blossomed. The shifting mindset prompted a
significant change in market leadership as traditionally defensive sectors, or
those consistently known for reliable and steady earnings, replaced groups that
thrive in periods of strong economic growth.
Among the market's leaders were the telecommunication services and utilities
sectors, previously out-of-favor groups which offered attractive dividend
yields. Due to an emphasis on high quality companies, however, the Fund had no
exposure to either group for the majority of the period--a stance which
diminished performance. Although the insistence on consistency in growth in
earnings and dividends may occasionally detract from returns, it's a proven
strategy for generating investment gains through a wide range of economic
cycles.
Also weighing on results was an underweight position, relative to the benchmark,
in the top-performing energy sector, although the Fund's exposure was increased
throughout the period as opportunities arose.+
Bolstering gains were underweight stakes in the information technology (IT) and
consumer discretionary sectors, which both sagged in the broader move away from
economically sensitive stocks. Overweight positions in the consumer staples and
industrials groups also proved advantageous as select food, beverage, tobacco
and diversified manufacturing companies outperformed.+
By the period's end, the Fund's stake in the IT and staples sectors had been
expanded and its exposure to discretionary names--especially retailers--was
trimmed. Additionally, its positioning within the financial services sector was
better balanced between brokerages and large banks.+
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BECAUSE THE FUND MAY INVEST IN A SINGLE INDUSTRY, ITS SHARES DO NOT REPRESENT A
COMPLETE INVESTMENT PROGRAM. AS A NON-DIVERSIFIED FUND, THE VALUE OF THE SHARES
MAY FLUCTUATE MORE THAN SHARES INVESTED IN A BROADER RANGE OF INDUSTRIES AND
COMPANIES.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
--------- ------- --------- ---------
Institutional Shares 5.14% -2.17% 3.03% $13,484
- --------------------------------------------------------------------------------
Class A Shares* -0.19% -3.37% 2.32% $12,582
- --------------------------------------------------------------------------------
Class B Shares** -0.87% -3.64% 2.08% $12,285
- --------------------------------------------------------------------------------
Class C Shares** 4.22% -3.12% 2.08% $12,290
- --------------------------------------------------------------------------------
Advisor Shares*** 1.18% -3.30% 2.24% $12,475
- --------------------------------------------------------------------------------
S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405
- --------------------------------------------------------------------------------
Russell 1000(R) Index 5.23% 3.45% 9.12% $23,943
- --------------------------------------------------------------------------------
Lipper Large-Cap
Core Funds Average 1 3.77% 1.40% 7.18% $20,548
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
Exxon Mobil Corp....................................................... 4.03%
PepsiCo, Inc........................................................... 3.95%
United Technologies Corp............................................... 3.71%
Wells Fargo & Co....................................................... 3.60%
Johnson & Johnson...................................................... 3.48%
Procter & Gamble Co.................................................... 3.48%
General Electric Corp.................................................. 3.36%
Wachovia Corp.......................................................... 2.88%
Becton, Dickinson & Co................................................. 2.76%
Citigroup, Inc......................................................... 2.65%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
36
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
DIVIDEND GROWTH FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Dividend
Growth Fund Russell 1000(R) Lipper Large-Cap
(Institutional Shares) Index S&P 500 Index Core Funds Average
---------------------- --------------- ----------------- --------------------
7/31/96 10000 10000 10000 10000
10811 10850 10785 10802
12/96 11152 11716 11684 11555
11259 11897 11998 11690
13377 13897 14090 13539
14494 15110 15146 14675
12/97 15104 15564 15580 14875
17482 17645 17752 16726
17794 18087 18341 17084
16072 16222 16521 15148
12/98 20079 19770 20036 18289
20841 20586 21034 18969
21394 22052 22514 20293
20294 20596 21112 18970
12/99 22416 23905 24250 21801
23218 24948 24806 22610
22393 24092 24147 22063
21380 24264 23913 22106
12/00 17987 22043 22043 20557
14632 19273 19431 18129
15282 20489 20568 19114
12943 17368 17550 16230
12/01 14065 19298 19425 18000
13681 19441 19479 17982
11637 16825 16871 15674
9729 13979 13958 13147
12/02 9889 15120 15134 14041
9510 14675 14657 13538
10527 16985 16912 15454
10556 17494 17360 15823
12/03 11903 19639 19472 17631
12245 20013 19802 17860
12263 20294 20142 18055
11271 19926 19766 17600
12/04 12440 21879 21590 19157
11737 21462 21126 18772
12015 21902 21415 19014
12612 22767 22187 19750
12/05 12996 23250 22649 20227
13438 24294 23602 21043
13245 23891 23262 20552
7/31/06 13484 23943 23405 20548
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the S&P 500(R) Index, the
Russell 1000(R) Index and the Lipper Large-Cap Core Funds Average. The
Fund changed its benchmark index from the Russell 1000(R) Index to the S&P
500(R) Index, effective August 1, 2005, in order to better represent the
Fund's investment policies for comparison purposes. The S&P 500(R) Index
measures the performance of 500 selected common stocks, most of which are
listed on the New York Stock Exchange, and is a measure of the U.S. stock
market as a whole. The Russell 1000(R) Index measures the performance of
the 1,000 largest companies in the Russell 3000(R) Index which represents
approximately 92% of the total market capitalization of the Russell
3000(R) Index. The Russell 1000(R) Growth Index measures the performance
of those Russell 1000(R) companies with higher price-to-book ratios and
higher forecasted growth values. The Lipper Large-Cap Core Funds Average
is representative of the average of the total returns reported by all of
the mutual funds designated by Lipper, Inc., which fell into this
category.
The S&P 500(R) Index and the Russell 1000(R) Index are unmanaged and do
not reflect the deduction of fees associated with a mutual fund such as
investment management and fund accounting fees. However, the Lipper
Large-Cap Core Funds Average and the Fund's performance reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in its underlying mutual
funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
37
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Technology Fund
(Institutional Shares) returned 1.00% on a net of fee basis, outperforming to
its benchmark, the Merrill 100 Lynch Technology Index, which advanced 0.60%.
Eying rising interest rates and growing inflationary pressures, investors exited
cyclical stocks through the final three months of the period and moved into more
defensive positions. Caught up in the broader rotation, the information
technology sector endured a fall that erased virtually all of the gains it
recorded through the first nine months of the period.
In addition to the macro issues, tech companies contended with seasonal
weaknesses and worries about slowing demand through the final quarter of the
period. Much of the concern over demand focused on consumers as higher interest
rates and energy prices took a toll, although uncertainties over business
spending plans emerged as well. Further exacerbating woes were acknowledgments
of heightened competitive pressures and product delays from some of the sector's
high-profile blue chip companies.
Aiding the Fund's performance were holdings within the software and services
group which develop specialized products for specific needs. Similarly, tightly
focused biotechnology positions proved advantageous.+
Detracting from performance was a lack of exposure to consumer-oriented
companies that are in the midst of turnarounds. As the Fund wasn't invested in
the companies when they were struggling, it didn't participate in the recent
rebound. In addition, holdings in the communications equipment space faltered.+
At the period's end, a renewed discipline in avoiding companies that weren't
executing reinforced the Fund's preference for companies possessing the
potential for accelerating earnings. The approach led to a modestly larger stake
in mid cap companies, which tend to offer a higher likelihood of greater
earnings growth than larger companies while exhibiting less volatility than
smaller issues.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S VALUE AND ITS RETURNS MAY BE CONSIDERABLY MORE VOLATILE AND POSE
GREATER RISKS DUE TO THE NATURE OF THE TECHNOLOGY SECTOR (SHORT PRODUCT CYCLES,
PRICE COMPETITION, OBSOLESCENCE OF EXISTING TECHNOLOGY) THAN THE VALUES AND
RETURNS OF OTHER MUTUAL FUNDS INVESTED IN A BROADER RANGE OF INDUSTRIES AND
COMPANIES. THE FUND COULD FLUCTUATE IN PRICE MORE THAN MOST FUNDS, DUE TO THE
VOLATILE NATURE OF THE TECHNOLOGY SECTOR.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE 2
--------- -------- -------- --------- ---------
Institutional Shares 6/5/00 1.00% -0.61% -10.43% $5,077
- --------------------------------------------------------------------------------
Class A Shares* 6/5/00 -4.25% -1.87% -11.39% $4,752
- --------------------------------------------------------------------------------
Class B Shares** 6/5/00 -4.89% -1.98% -11.28% $4,789
- --------------------------------------------------------------------------------
Class C Shares** 6/5/00 0.11% -1.59% -11.32% $4,774
- --------------------------------------------------------------------------------
Advisor Shares*** 6/5/00 -2.68% -1.77% -11.36% $4,763
- --------------------------------------------------------------------------------
Merrill Lynch 100
Technology Index 1 0.60% -0.71% -11.48% $4,715
- --------------------------------------------------------------------------------
Lipper Science and
Technology Funds
Average 1 -2.67% -3.78% -12.87% $4,606
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
THE INCEPTION DATE FOR THE INSTITUTIONAL, CLASS A AND CLASS C SHARES OF THE
TECHNOLOGY FUND IS JUNE 5, 2000. THE INCEPTION DATE FOR CLASS B AND ADVISOR
SHARES IS OCTOBER 11, 2000 AND OCTOBER 29, 2001, RESPECTIVELY. THE QUOTED
PERFORMANCE PRIOR TO THE INCEPTION OF CLASS B AND ADVISOR SHARES IS BASED ON THE
PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR
AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE
WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN
LOWER.
- --------------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
- --------------------------------------------------------------------------------
Comverse Technology, Inc............................................... 2.67%
Cadence Design Systems, Inc............................................ 2.24%
Freescale Semiconductor, Inc., Class A................................. 2.11%
International Game Technology.......................................... 2.11%
Symbol Technologies, Inc............................................... 2.10%
Lexmark International, Inc............................................. 2.05%
BEA Systems, Inc....................................................... 2.02%
GameStop Corp., Class A................................................ 2.01%
Cephalon, Inc.......................................................... 1.88%
Microsoft Corp......................................................... 1.82%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
38
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Merrill Lynch Lipper Science
Technology Fund 100 Technology and Technology
(Institutional Shares) Index Funds Average
---------------------- --------------- ----------------
6/5/00 10000 10000 10000
10185 11377 11538
9895 10948 11208
12/00 7413 6649 7391
4925 4655 5123
5743 5372 5710
3709 3176 3695
12/01 4951 4485 4876
4542 4351 4547
3058 3018 3362
2114 2069 2550
12/02 2871 2622 2944
2887 2617 2920
4073 3404 3594
4628 3821 3956
12/03 5405 4426 4440
5375 4491 4492
5026 4503 4487
4214 4002 4043
12/04 5031 4742 4676
4552 4355 4290
4703 4389 4438
5163 4819 4769
12/05 5410 5021 4954
6177 5468 5304
5380 4974 4825
7/31/06 5077 4715 4606
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Merrill Lynch 100
Technology Index and the Lipper Science and Technology Funds Average. The
Merrill Lynch 100 Technology Index is an equal-dollar weighted index of
100 stocks designed to measure the performance of a cross-section of
large, actively traded technology stocks and American Depository Receipts.
The Lipper Science and Technology Funds Average is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The Merrill Lynch 100 Technology Index is unmanaged and does not reflect
the deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper Science and
Technology Funds Average and the Fund's performance reflect the deduction
of fees for these value-added services. Investors cannot invest directly
in an index, although they can invest in its underlying mutual funds or
securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
39
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third International
Equity Fund (Institutional Shares) advanced 23.86% on a net of fees basis,
underperforming its benchmark, the MSCI EAFE(R) Index, which gained 24.51%.
While investors grappled with the slowing pace of global economic growth,
inflationary pressures, high oil prices and geopolitical uncertainty, Asian
equities proved most rewarding during the period as Japan returned 33.8%, and
Asia excluding Japan gained 26.0%. Europe modestly trailed the benchmark,
posting a 23.2% advance.
Within the Fund, an emphasis on Germany diminished returns from European
holdings, as did an underweight position, relative to the benchmark, in the
euro, which gained against the U.S. dollar. Overweight stakes in Hong Kong and
Singapore--two Asian laggards--also detracted from performance. +
The Fund benefited from its significant exposure to Japan, where resilience in
the economic recovery lifted equities most notably during the first portion of
the period. Indicators such as double-digit increases in machinery orders and an
uptick in bank lending buoyed optimism about the economy, although some
investors worried about the potential impact of a global slowdown. Considering
domestic developments such as a healthy real estate market, steady job growth
and solid gains in corporate revenues, the Fund maintained its stake. +
Further enhancing gains was a modest position in emerging markets, which rallied
28.4% as a group, and underweight stakes in two European underperformers--the
United Kingdom and Italy. +
At the period's end, economic growth appeared to be easing worldwide, but not
dramatically. Meanwhile, although inflationary pressures continued to gain
traction, the efforts of the U.S. Federal Reserve, the European Central Bank,
the Bank of Japan and the Chinese government were all focused on tempering
inflationary expectations with proactive measures. Against this backdrop, the
outlook for equities remained good.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THIS FUND ENTAILS THE SPECIAL RISKS OF INTERNATIONAL INVESTING,
INCLUDING CURRENCY EXCHANGE FLUCTUATION, GOVERNMENT REGULATIONS, AND THE
POTENTIAL FOR POLITICAL AND ECONOMIC INSTABILITY. THE FUND'S SHARE PRICE IS
EXPECTED TO BE MORE VOLATILE THAN THAT OF A U.S.-ONLY FUND.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 23.86% 9.30% 7.22% $20,071
- --------------------------------------------------------------------------------
Class A Shares* 17.34% 8.03% 6.49% $18,758
- --------------------------------------------------------------------------------
Class B Shares** 17.59% 7.93% 6.18% $18,221
- --------------------------------------------------------------------------------
Class C Shares** 22.61% 8.21% 6.29% $18,409
- --------------------------------------------------------------------------------
Advisor Shares*** 19.20% 8.15% 6.43% $18,643
- --------------------------------------------------------------------------------
MSCI EAFE(R) Index 1 24.51% 11.07% 7.17% $19,996
- --------------------------------------------------------------------------------
Lipper International
Large-Cap Core Funds
Average 1 22.48% 8.10% 6.65% $19,448
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
CLASS A SHARES WERE INITIALLY OFFERED ON AUGUST 18, 1994. CLASS B AND CLASS C
SHARES WERE INITIALLY OFFERED ON OCTOBER 11, 2000 AND APRIL 25, 1996,
RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS
PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES.
INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON OCTOBER 9, 1998. THE PERFORMANCE
FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE
PERFORMANCE FOR CLASS A SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON
NOVEMBER 10, 2003. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR THE PERIODS
PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR ADVISOR SHARES. DURING THE
PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR
VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT,
PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
BP PLC................................................................. 1.91%
Toyota Motor Corp...................................................... 1.66%
Glaxosmithkline PLC.................................................... 1.40%
HSBC Holdings PLC...................................................... 1.34%
Total SA............................................................... 1.12%
Mitsubishi Tokyo Financial Group....................................... 1.07%
Royal Dutch Shell PLC.................................................. 1.06%
Nestle................................................................. 1.03%
AstraZeneca PLC........................................................ 0.91%
Novartis AG, Registered................................................ 0.90%
+ Portfolio composition is subject to change.
40
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Lipper
International International
Equity Fund Large-Cap
(Institutional MSCI EAFE(R) Core Funds
Shares) Index Average
-------------- ------------ -------------
7/31/96 10000 10000 10000
10335 10293 10375
12/96 10561 10465 10848
10561 10308 10991
11935 11654 12300
11986 11579 12509
12/97 11402 10680 11604
13192 12259 13346
13500 12398 13478
11896 10643 11292
12/98 13620 12852 13227
13789 13040 13545
14070 13380 14245
14588 13976 14766
12/99 17176 16360 18442
16770 16352 18658
16205 15714 17799
15135 14455 16291
12/00 14730 14077 15545
13065 12154 13366
12993 12049 13310
11670 10368 11291
12/01 12093 11092 12235
12280 11206 12353
12122 10939 11946
9945 8785 9508
12/02 10428 9355 10114
9558 8595 9221
11095 10276 10834
11907 11117 11539
12/03 13897 13019 13342
14118 13592 13807
14324 13652 13659
14118 13621 13577
12/04 16115 15713 15504
15935 15698 15376
15755 15580 15253
17527 17206 16954
12/05 18366 17916 17733
20040 19613 19421
19868 19797 19312
7/31/06 20071 19996 19448
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Morgan Stanley Capital
International (MSCI) Europe, Australasia and Far East (EAFE)(R) Index and
the Lipper International Large-Cap Core Funds Average. The Morgan Stanley
Capital International (MSCI) Europe, Australasia and Far East (EAFE)(R)
Index is generally representative of a sample of companies of the market
structure of 20 European and Pacific Basin countries. The Lipper
International Large-Cap Core Funds Average is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The MSCI EAFE(R) Index does not reflect the deduction of fees associated
with a mutual fund such as investment management and fund accounting fees.
However, the Lipper International Large-Cap Core Funds Average and the
Fund's performance reflect the deduction of fees for these value-added
services. Investors cannot invest directly in an index, although they can
invest in its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-year period ended July 31, 2006.
41
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
From inception on November 29, 2005, through July 31, 2006, the Fifth Third High
Yield Bond Fund (Institutional Shares) returned 1.59% on a net of fee basis,
lagging its benchmark, the Merrill Lynch High Yield Master Index, which returned
5.06%.
Much of the underperformance stemmed from two factors: the Fund's higher quality
discipline in a market driven by low-quality issues and its underweight stake,
relative to the benchmark, in automotive-related debt.
The market's appetite for riskier, low-quality bonds reflected investors' more
speculative mindset and a desire for higher yields. Although demand cooled
somewhat in the final two months, the riskiest issues--those rated CCC--ended
with an average return of 9.76% in the abbreviated period since the Fund's
inception.
Auto-industry bonds, primarily those issued by General Motors and Ford,
currently account for over 13% of the benchmark. Since such a weighting is
inappropriate for a well-diversified high yield bond portfolio, the Fund
maintained a significantly smaller position during the period. Yet as the group
advanced 17.24% since the Fund's inception, the Fund's performance suffered. +
Underperformance within the utilities, healthcare and energy sectors--all
traditionally considered defensive in nature-- further diminished returns during
the period. Along with the market's distaste for more conservative investments,
many of the Fund's holdings within these areas are sensitive to interest rate
moves and struggled as rates generally moved higher. +
Considering such circumstances, it's important to remember that the Fund is
designed to generate solid returns in an up market and protect principal
investments as much as possible in a down market. Accordingly, bets on
low-quality bonds, which are historically more volatile, and oversized positions
in any sector are ill advised.
In keeping with its overarching investment philosophy, the Fund at the end of
the period remained thoughtfully structured to deliver optimal risk-adjusted
returns with reduced volatility. +
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
AGGREGATE TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
SINCE ENDING
INCEPTION DATE INCEPTION VALUE 2
---------------- ----------- ---------
Institutional Shares 11/29/05 1.59% $10,159
- --------------------------------------------------------------------------------
Class A Shares* 11/29/05 -3.39% $ 9,661
- --------------------------------------------------------------------------------
Class B Shares** 11/29/05 -3.96% $ 9,604
- --------------------------------------------------------------------------------
Class C Shares** 11/29/05 -0.03% $ 9,997
- --------------------------------------------------------------------------------
Advisor Shares*** 11/29/05 -2.07% $ 9,793
- --------------------------------------------------------------------------------
Merrill Lynch High
Yield Master Index 1 5.07% $10,507
- --------------------------------------------------------------------------------
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%.
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.
- --------------------------------------------------------------------------------
FUND HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
Corporate Bonds 86.20%
Short-Term Securities Held as
Collateral for Securities Lending 7.40%
Investments in Affiliates 6.40%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
42
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
Fifth Third High Yield Merrill Lynch
Bond Fund High Yield
(Institutional Shares) Master Index
---------------------- -------------
11/29/05 10000 10000
10000 10000
12/05 10002 10092
10147 10253
10208 10318
3/06 10231 10380
10247 10442
10180 10434
6/06 10094 10396
7/31/06 10159 10507
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Merrill Lynch High Yield
Master Index is an unmanaged index which tracks the performance of below
investment grade, U.S. dollar-denominated corporate bonds publicly issued
in the U.S. domestic market. Qualifying bonds must have at least one year
remaining term to maturity, at least $100,000,000 par outstanding, and a
fixed coupon schedule. The index does 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 mutual funds or securities.
2 The ending value represents the value of a $ 10,000 investment in the
indicated share class from its inception to the period ended July 31,
2006.
43
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Bond Fund
(Institutional Shares) returned 1.21% on a net of fee basis, trailing its
benchmark, the Lehman Brothers Aggregate Bond Index, which advanced 1.46%.
The Federal Reserve's tightening cycle reached the two-year mark during the
period as it pushed its key overnight rate from 3.25% to 5.25%. The Fed's moves
inspired higher rates along the yield curve, but as short-term rates rose faster
than long-term yields, the curve flattened and actually inverted for a portion
of the period.
In such cases when long-term rates lag short-term yields, it's advisable to
maintain a barbell strategy, which emphasizes holdings at each end of the yield
curve. As the Fund relied more upon a bulleted structure, which consists of
larger positions in the middle of the curve, its performance sagged. The
bulleted strategy was employed in anticipation of a normalized yield
curve--featuring lower yields at the short end and higher rates at the long end
- - and was still in place at the period's close. +
Aiding performance during the period were overweight positions, relative to the
benchmark, in asset backed securities (ABS) and commercial mortgage backed
securities (CMBS). Consisting primarily of home equity loans originating 3-5
years ago--before the rapid acceleration in housing values--the Fund's ABS
exposure saw minimal reaction to the cooling of the housing market. +
Within the CMBS space, the solid fundamental health of the commercial real
estate market, which featured low delinquency and foreclosure rates, bolstered
the Fund's holdings. Non-traditional fixed income investors such as hedge funds
further boosted values in the CMBS market. +
Underweight stakes in corporate bonds, which were richly valued considering the
uncertain fallout from the Fed's rate hikes, and government agency issues,
especially in mortgage-backers Fannie Mae and Freddie Mac which are still
sorting out sticky accounting issues, also enhanced relative 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.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.21% 3.94% 5.79% $17,551
- --------------------------------------------------------------------------------
Class A Shares* -3.81% 2.71% 5.05% $16,363
- --------------------------------------------------------------------------------
Class B Shares** -4.61% 2.55% 4.73% $15,868
- --------------------------------------------------------------------------------
Class C Shares** 0.30% 2.92% 4.73% $15,882
- --------------------------------------------------------------------------------
Advisor Shares*** -2.60% 2.76% 4.91% $16,145
- --------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1 1.46% 4.79% 6.33% $18,476
- --------------------------------------------------------------------------------
Lipper Corporate
Debt Funds A Rated Average 1 0.78% 4.34% 5.75% $17,516
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME
FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH 20, 1995. PRIOR TO
OCTOBER 29, 2001, THE PERFORMANCE FIGURES FOR THE FIFTH THIRD BOND FUND CLASS A
SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME FUND INVESTMENT SHARES WITH
AN INCEPTION DATE OF MARCH 22, 1995, ADJUSTED FOR THE MAXIMUM SALES CHARGE.
CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE
PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH
DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO
REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES.
ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE
FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE
PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR
ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED
AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR
REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER.
- --------------------------------------------------------------------------------
FUND HOLDINGS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
Corporate Bonds 52.77%
U.S. Government Agencies 37.42%
Commercial Paper 5.83%
Investments in Affiliates 2.52%
Foreign Bonds 0.71%
U.S. Treasury Obligations 0.51%
Short-Term Securities Held as
Collateral for Securities Lending 0.24%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
44
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Lehman Brothers Lipper Corporate
Bond Fund Aggregate Bond Debt Funds A
(Institutional Shares) Index Rated Average
---------------------- --------------- ----------------
7/31/96 10000 10000 10000
10158 10157 10156
12/96 10540 10462 10498
10309 10403 10386
10787 10785 10777
11279 11144 11177
12/97 11652 11472 11525
11831 11650 11686
12134 11922 11984
12660 12427 12422
12/98 12734 12468 12404
12535 12407 12271
12273 12298 12085
12265 12381 12105
12/99 12173 12366 12045
12544 12639 12329
12616 12859 12429
13021 13247 12785
12/00 13623 13804 13275
14077 14223 13704
14097 14303 13764
14836 14962 14298
12/01 14610 14969 14310
14461 14983 14262
15076 15537 14733
15789 16249 15377
12/02 15986 16504 15625
16196 16734 15869
16517 17153 16415
16467 17128 16351
12/03 16498 17182 16423
16894 17638 16879
16460 17207 16401
16954 17758 16941
12/04 17105 17927 17135
17056 17841 17065
17527 18378 17573
17386 18254 17414
12/05 17466 18363 17492
17362 18244 17348
17319 18230 17293
7/31/06 17551 18476 17516
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Aggregate
Bond Index and the Lipper Corporate Debt Funds A Rated Average. The Lehman
Brothers Aggregate Bond Index is representative of investment-grade
fixed-rate debt issues, including government, corporate, asset-backed,
and mortgage-backed securities, with maturities of at least one year. The
Lipper Corporate Debt Funds A Rated Average is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Aggregate Bond Index is an unmanaged index and does
not reflect the deduction of fees associated with a mutual fund such as
investment management and fund accounting fees. However, the Lipper
Corporate Debt Funds A Rated Average and the Fund's performance reflect
the deduction of fees for these value-added services. Investors cannot
invest directly in an index, although they can invest in its underlying
mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-year period ended July 31, 2006.
45
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Intermediate Bond
Fund (Institutional Shares) returned 1.76% on a net of fee basis, slightly
underperforming its benchmark, the Lehman Brothers Intermediate
Government/Credit Bond Index, which advanced 1.78%.
While the Federal Reserve steadily increased its overnight lending rate, using a
series of quarter-point moves to lift the key rate from 3.25% to 5.25% over the
period, longer-term bonds posted modest increases in yields. The disconnect
between the central bank, which cited inflationary pressures, and investors, who
feared the moves would lead to an economic slowdown, resulted in a slightly
inverted yield curve. Such a condition, which exists when short-term yields are
higher than long-term rates, is counterintuitive and challenging for fixed
income investors.
To attempt to overcome this market challenge, the Fund's holdings were focused
on better quality, higher yielding bonds such as commercial mortgage backed
securities (CMBS), residential mortgage backed securities (RMBS) and asset
backed securities (ABS). Among CMBS holdings, those holding the highest credit
ratings outperformed, as did "seasoned" issues--10-year bonds issued three or
four years ago. Hybrid adjustable rate mortgages led the Fund's RMBS exposure
while home equity loans were used for ABS holdings. +
Also providing a lift were select investments in U.S. dollar denominated
overseas energy and commodity metals production companies. Originally sold at a
larger discount than U.S. investment grade corporate bonds, these positions
performed well, benefiting from the upward trend of energy and metal prices. +
Weighing on performance were the Fund's holdings in U.S. Treasury issues,
government agency bonds and investment grade corporate investments, which were
all underweight relative to the benchmark. Treasuries and agency bonds struggled
as the entire yield curve rose while increased leveraged buyout activity took a
selective toll on bonds issued by corporations perceived to be potential
targets. +
At the period's end, the Fund was defensively positioned with a neutral duration
profile, which is suited for an uncertain interest rate environment. +
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.65% 3.63% 5.20% $16,609
- --------------------------------------------------------------------------------
Class A Shares* -2.11% 2.63% 4.57% $15,632
- --------------------------------------------------------------------------------
Class B Shares** -3.37% 2.64% 4.33% $15,280
- --------------------------------------------------------------------------------
Class C Shares** 0.72% 2.60% 4.14% $14,999
- --------------------------------------------------------------------------------
Advisor Shares*** -0.85% 2.74% 4.48% $15,504
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index 1 1.78% 4.42% 5.89% $17,730
- --------------------------------------------------------------------------------
Lipper Intermediate
Investment Grade Debt
Funds Average 1 1.08% 4.15% 5.60% $17,281
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
Corporate Bonds 80.32%
U.S. Government Agencies 11.72%
Short-Term Securities Held as
Collateral for Securities Lending 4.32%
Investments in Affiliates 3.44%
Foreign Bonds 0.20%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
46
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lehman Brothers
Fifth Third Intermediate Lipper Intermediate
Intermediate Bond Fund Government/Credit Investment Grade
(Institutional Shares) Bond Index Debt Funds Average
----------------------- ----------------- -------------------
7/31/96 10000 10000 10000
10146 10147 10168
12/96 10405 10396 10481
10339 10384 10429
10675 10690 10797
10980 10979 11152
12/97 11215 11214 11427
11391 11389 11608
11606 11603 11855
12036 12124 12252
12/98 12074 12160 12279
12003 12137 12222
11871 12089 12077
11960 12200 12133
12/99 11926 12207 12121
12138 12390 12345
12294 12600 12489
12655 12963 12836
12/00 13088 13442 13320
13524 13897 13732
13621 13991 13780
14265 14634 14353
12/01 14179 14647 14330
14071 14614 14300
14575 15134 14684
15147 15819 15221
12/02 15400 16087 15494
15607 16330 15733
15949 16774 16162
15863 16771 16144
12/03 15826 16781 16218
16184 17196 16611
15756 16762 16212
16144 17215 16693
12/04 16228 17291 16866
16086 17140 16774
16462 17566 17217
16374 17474 17117
12/05 16430 17564 17191
16412 17496 17098
16437 17533 17064
7/31/06 16609 17730 17281
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers
Intermediate Government/Credit Bond Index and the Lipper Intermediate
Investment Grade Debt Funds Average. The Lehman Brothers Intermediate
Government/Credit Bond Index is composed of investment grade corporate
debt issues as well as debt issues of U.S. government agencies and the
U.S. Treasury agencies. The debt issues within the index all maintain
maturities within a range of one to ten years. The Lipper Intermediate
Investment Grade Debt Funds Average is representative of the average of
the total returns reported by all of the mutual funds designated by
Lipper, Inc., which fell into this category.
The Lehman Brothers Intermediate Government/Credit Bond Index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund
such as investment management and fund accounting fees. However, the
Lipper Intermediate Investment Grade Debt Funds Average and the Fund's
performance reflect the deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they can invest in
its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
47
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Short Term Bond
Fund (Institutional Shares) returned 2.86% on a net of fee basis, narrowly
trailing its benchmark, the Merrill Lynch 1-3 Year Government/Corporate Bond
Index, which advanced 3.00%.
Fueled by persistently high energy prices, concerns over inflationary pressures
prompted the Federal Reserve to extend its rate-hike campaign throughout the
period, moving its overnight lending rate from 3.25% to 5.25%. The steady push,
which consisted of eight consecutive quarter-point bumps, ran rates higher than
many observers expected at the outset of the period. It also led some to
question whether the central bank moved too far.
Contributing to the mixed sentiments were the actions of new Fed chair Ben
Bernanke, who appeared determined to shake his pre-appointment reputation as an
inflation dove, or one who would opt for fewer rate hikes. Until the markets
grow comfortable with his approach to the economy and monetary policy, wariness
between investors and Bernanke will likely linger.
As rates advanced, Treasury issues struggled and weighed on the Fund's
performance, although an underweight position, relative to the benchmark,
minimized the damage. +
Boosting returns were stakes in select commercial mortgage backed securities
(CMBS) and asset backed securities (ABS). Among CMBS holdings, high quality
bonds originally issued in the 1990s--called "seasoned" due to their
age--outperformed while providing enhanced yields. Similarly, better yielding
ABS issues tied to home equity loans proved advantageous. +
Positioned for much of the period with a short duration, relative to the
benchmark, the Fund managed to mitigate much of the impact of the rise in
short-term rates. By the period's end, however, the duration had been adjusted
closer to neutral, reflecting the expectation that Fed activity was nearing its
end. Holdings also emphasized the mid-point of the short-term universe -- 2-year
issues -- in anticipation of a more normalized interest rate environment where
long-term yields run higher than short-term yields. +
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 2.75% 2.70% 4.49% $15,520
- --------------------------------------------------------------------------------
Class A Shares* -1.00% 1.78% 3.96% $14,743
- --------------------------------------------------------------------------------
Class C Shares** 1.81% 1.68% 3.46% $14,048
- --------------------------------------------------------------------------------
Advisor Shares*** 0.15% 1.77% 3.76% $14,469
- --------------------------------------------------------------------------------
Merrill Lynch 1-3 Year
Government/Corporate
Bond Index 1 3.00% 3.34% 5.04% $16,351
- --------------------------------------------------------------------------------
Lipper Short Investment
Grade Debt Funds Average 1 2.74% 2.84% 4.46% $15,481
- --------------------------------------------------------------------------------
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 1.00%
FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD Short Term Bond FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE
KENT SHORT TERM BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF
NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD
SHORT TERM BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT SHORT
TERM BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF DECEMBER 4, 1992,
ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS C 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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
Corporate Bonds 50.33%
U.S. Government Agencies 25.52%
Short-Term Securities Held as
Collateral for Securities Lending 13.65%
U.S. Treasury Obligations 7.87%
Investments in Affiliates 1.88%
Foreign Bonds 0.46%
Municipal Bonds 0.29%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
48
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lipper Short
Fifth Third Short Term Merrill Lynch 1-3 Year Investment
Bond Fund Government/Corporate Grade Debt
(Institutional Shares) Bond Index Funds Average
---------------------- ---------------------- -------------
7/31/96 10000 10000 10000
10124 10126 10124
12/96 10309 10320 10318
10340 10391 10381
10575 10622 10601
10791 10832 10813
12/97 10970 11011 10966
11119 11176 11119
11271 11350 11281
11553 11687 11555
12/98 11644 11783 11611
11721 11868 11707
11748 11938 11742
11881 12083 11861
12/99 11936 12166 11942
12072 12317 12083
12271 12524 12266
12566 12806 12534
12/00 12905 13147 12825
13271 13529 13183
13418 13705 13337
13846 14181 13734
12/01 13925 14293 13770
13863 14295 13784
14150 14640 14032
14440 14986 14286
12/02 14598 15164 14419
14720 15295 14544
14834 15464 14698
14895 15540 14730
12/03 14894 15580 14759
15026 15754 14914
14864 15577 14759
14993 15753 14915
12/04 15004 15768 14949
14966 15725 14914
15138 15918 15080
15162 15939 15107
12/05 15252 16045 15192
15321 16122 15276
15416 16228 15372
7/31/06 15520 16351 15481
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Merrill Lynch 1-3 Year
Government/Corporate Bond Index and the Lipper Short Investment Grade Debt
Funds Average. The Merrill Lynch 1-3 Year Government/Corporate Bond Index
is composed of U.S. Treasury issues and publicly issued debt of U.S.
Government agencies with maturities of one to three years. The Lipper
Short Investment Grade Debt Funds Average is representative of the average
of the total returns reported by all of the mutual funds designated by
Lipper, Inc., which fell into this category.
The Merrill Lynch 1-3 Year Government/Corporate Bond Index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund
such as investment management and fund accounting fees. However, the
Lipper Short Investment Grade Debt Funds Average and the Fund's
performance reflect the deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they can invest in
its underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
49
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third U.S. Government
Bond Fund (Institutional Shares) returned 1.91% on a net of fee basis,
underperformed its benchmark, the Lehman Brothers Intermediate Government Bond
Index, which gained 1.99%.
The realization that new Federal Reserve chair Ben Bernanke would extend Alan
Greenspan's rate-hike campaign in an effort to fend off inflation rattled the
fixed income markets in early 2006. Concerns over how far Bernanke would go
prompted investors to sell off riskier issues such as mortgage-related bonds
with longer maturation dates.
The heightened volatility adversely affected the Fund, which held a number of
underperforming long-dated mortgage backed securities. The situation was
exacerbated by extremely high demand for high quality, short-dated
mortgage-backed debt, which tends to offer better yields than Treasury issues.
As the supply of such bonds was relatively small, any available issues commanded
premium prices. +
Due in part to the mortgage-related positioning, the Fund's duration stood at a
neutral stance, relative to the benchmark, for much of the period. Ideal for
periods with a normalized yield curve, featuring higher long-term rates than
short-term yields, the strategy shift followed a lengthy stretch where the Fund
maintained a short duration designed to mitigate the affect of the rising
short-term rates. +
Bolstering performance were structured mortgage-backed bonds that pay back
investors from the interest component of real estate loans. The issues offer
slightly better yields to account for the prepayment risk of the underlying
mortgages, but when short-term rates steadily rise, refinancing activity eases,
which helps such interest-only issues. +
Also adding to returns were high quality bonds with floating yields. Generally
adjusted monthly, these issues offered a near-immediate hike in interest income
as the Fed moved its key overnight rate from 3.25% to 5.25% in eight consecutive
meetings 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 JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.91% 3.47% 4.97% $16,237
- --------------------------------------------------------------------------------
Class A Shares* -3.15% 2.24% 4.26% $15,178
- --------------------------------------------------------------------------------
Class C Shares** 0.86% 2.44% 4.00% $14,797
- --------------------------------------------------------------------------------
Advisor Shares*** -1.86% 2.31% 4.17% $15,052
- --------------------------------------------------------------------------------
Lehman Brothers Intermediate
Government Bond Index 1 1.99% 3.95% 5.58% $17,209
- --------------------------------------------------------------------------------
Lipper Short-Intermediate
U.S. Government Bond Funds
Average 1 1.62% 3.09% 4.71% $15,866
- --------------------------------------------------------------------------------
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 1.00%
FOR CLASS C SHARES.
*** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%.
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 JULY 31, 2006
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
Freddie Mac 28.35%
Fannie Mae 16.62%
Government National Mortgage Association 12.51%
Investments in Affiliates 10.65%
Financing Corporation 9.02%
Small Business Administration 6.33%
Federal Home Loan Bank 6.08%
U.S. Treasury Obligations 4.98%
Corporate Bonds 3.56%
Tennessee Valley Authority 1.90%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
50
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lehman Brothers Lipper Short-
Fifth Third U.S. Intermediate Intermediate U.S.
Government Bond Fund Government Bond Government Bond
(Institutional Shares) Index Funds Average
---------------------- --------------- -----------------
7/31/96 10000 10000 10000
10141 10141 10127
12/96 10333 10375 10338
10322 10373 10361
10589 10662 10607
10852 10935 10844
12/97 11070 11177 11041
11239 11346 11186
11423 11555 11359
11897 12095 11760
12/98 11901 12125 11798
11863 12092 11811
11809 12068 11756
11921 12190 11855
12/99 11922 12184 11879
12056 12383 12031
12251 12609 12222
12593 12947 12520
12/00 13053 13460 12931
13428 13864 13273
13459 13922 13352
14109 14613 13935
12/01 14053 14593 13910
13974 14555 13921
14489 15117 14367
15155 15845 14883
12/02 15286 16000 15022
15428 16148 15140
15635 16421 15321
15550 16399 15267
12/03 15514 16366 15254
15808 16727 15510
15453 16342 15212
15755 16711 15479
12/04 15824 16748 15525
15729 16634 15439
16066 17018 15704
16017 16929 15641
12/05 16073 17030 15698
16037 16979 15685
16080 17031 15723
7/31/06 16237 17209 15866
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers
Intermediate Government Bond Index and the Lipper Short-Intermediate U.S.
Government Bond Funds Average. The Lehman Brothers Intermediate Government
Bond Index is generally representative of intermediate-term government
bonds. The Lipper Short-Intermediate U.S. Government Bond Funds Average is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Intermediate Government Bond Index is unmanaged and
does not reflect the deduction of fees associated with a mutual fund such
as investment management and fund accounting fees. However, the Lipper
Short-Intermediate U.S. Government Bond Funds Average and the Fund's
performance reflect the deduction for fees for these value-added services
Investors cannot invest directly in an index, although they can invest in
the underlying securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
51
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Municipal Bond Fund
(Institutional Shares) returned 1.49% on a net of fee basis, trailing its
benchmark, the Lehman Brothers Municipal Bond Index, which returned 2.55%.
Taking cues from the U.S. Treasury market, where short-term yields rose faster
than long-term rates, the municipal bond yield curve flattened during the
period. For example, the average yield on a 3-year municipal bond increased 70
basis points (0.70%), while the average yield on a 30-year municipal bond
increased 12 basis points (0.12%). By comparison, the Federal Reserve raised its
overnight rate from 3.25% to 5.25% during the period--a far more dramatic move
than among Treasury debentures dated 2 years and up, where increases were
restrained by concerns over an economic slowdown.
At the start of the period, the Fund's duration was short of the benchmark--a
position designed to mitigate the impact of rising short-term interest rates.
Over the course of the 12-months, however, the position was adjusted back to
neutral and finished slightly longer than the benchmark. Although this helped in
July as fixed income markets rallied on the belief that the Fed had completed
its rate-hike campaign, an underweight stake at the longest end of the yield
curve affected returns. +
The outperformance by low-quality issues, especially in tobacco-related bonds,
also affected gains as, given the Fund's high-quality orientation, it held no
tobacco-related issues. +
The Fund's long-term issues enhanced returns and better yielding opportunities
arose among A-rated issues, especially within the healthcare sector. +
From a supply standpoint, 2006 has been tighter than 2005, with issuance down
about 15% through the first six months. Much of the decrease may be attributed
to the 52% drop in pre-refunded bonds, or new issues featuring better terms
which allow issuers to retire higher yielding debt. As rates have increased,
refinancing activity has subsided significantly.
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.49% 4.11% 5.09% $16,422
- --------------------------------------------------------------------------------
Class A Shares* -3.45% 2.85% 4.31% $15,256
- --------------------------------------------------------------------------------
Class B Shares** -4.20% 2.74% 4.03% $14,841
- --------------------------------------------------------------------------------
Class C Shares** 0.56% 3.09% 4.04% $14,863
- --------------------------------------------------------------------------------
Advisor Shares*** -2.23% 2.95% 4.24% $15,145
- --------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index 1 2.55% 4.99% 5.82% $17,607
- --------------------------------------------------------------------------------
Lipper General Municipal
Debt Funds Average 1 2.23% 4.22% 4.94% $16,216
- --------------------------------------------------------------------------------
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%.
THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF
TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES.
FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH
THIRD MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE
KENT TAX--FREE INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH
20, 1995. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD
MUNICIPAL BOND FUND CLASS A Shares REFLECTS THE PERFORMANCE OF THE KENT TAX-FREE
INCOME FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MARCH 31, 1995, AND IS
ADJUSTED TO REFLECT APPLICABLE SALES CHARGE. CLASS B AND CLASS C SHARES WERE
INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS B AND
CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR
INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES
CHARGES FOR CLASS B AND CLASS C SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON
OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR
TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED
TO REFLECT EXPENSES FOR ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR
AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE
WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN
LOWER.
- --------------------------------------------------------------------------------
BOND QUALITY RATINGS AS OF JULY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
AAA 69.47%
AA 16.55%
A 6.03%
BBB 7.18%
Net Cash and Equivalents 0.77%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
52
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Fifth Third Municipal Lipper General
Bond Fund Lehman Brothers Municipal Debt
(Institutional Shares) Municipal Bond Index Funds Average
--------------------- -------------------- --------------
7/31/96 10000 10000 10000
10104 10137 10142
12/96 10378 10396 10387
10312 10371 10339
10668 10728 10700
10977 11052 11031
12/97 11270 11351 11345
11354 11482 11455
11496 11657 11606
11888 12015 11941
12/98 11914 12087 11949
11968 12194 12006
11699 11979 11735
11645 11931 11565
12/99 11525 11838 11377
11893 12184 11698
12054 12369 11824
12336 12668 12099
12/00 12954 13222 12617
13194 13515 12860
13245 13603 12919
13593 13985 13249
12/01 13480 13899 13099
13606 14030 13201
14117 14544 13638
14810 15234 14225
12/02 14781 15234 14171
14936 15417 14256
15320 15815 14647
15302 15828 14643
12/03 15474 16044 14870
15687 16321 15093
15283 15935 14743
15825 16556 15277
12/04 15949 16762 15474
15882 16757 15464
16277 17247 15891
16213 17226 15873
12/05 16264 17352 15979
16275 17394 16037
16247 17400 16033
7/31/06 16422 17607 16216
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Municipal
Bond Index and the Lipper General Municipal Debt Funds Average. The Lehman
Brothers Municipal Bond Index is generally representative of the municipal
bond market. The Lipper General Municipal Debt Funds Average is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Municipal Bond Index is unmanaged and does not reflect
the deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper General Municipal
Debt Funds Average and the Fund's performance reflect the deduction of
fees for these value-added services. Investors cannot invest directly in
an index, although they can invest in its underlying mutual funds or
securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-year period ended July 31, 2006.
53
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Intermediate
Municipal Bond Fund (Institutional Shares) returned 1.43% on a net of fee basis,
underperforming its benchmark, the Lehman Brothers Quality Intermediate
Municipal Bond Index, which advanced 2.04%.
Taking cues from the U.S. Treasury market, where short-term yields rose faster
than long-term rates, the municipal bond yield curve flattened out during the
period. For example, the average yield on a 3-year municipal bond increased 70
basis points (0.70%), while the average yield on a 5-year municipal bond
increased 53 basis points (0.53%). By comparison, the Federal Reserve raised its
overnight rate from 3.25% to 5.25% during the period--a far more dramatic move
than among Treasury debentures dated 2 years and up, where increases were
restrained by concerns over an economic slowdown.
For much of the period, the Fund's duration was short of the benchmark--a
position designed to mitigate the impact of rising short-term interest rates. By
the end of June, however, the position was adjusted to a slightly longer
duration than the benchmark. Although this helped in July as fixed income
markets rallied on the belief that the Fed had completed its rate-hike campaign,
an underweight stake at the longest end of the yield curve affected returns. +
The Fund's stake in Puerto Rico issues enhanced gains. Purchased when the
country's credit quality ratings were under pressure, the Fund enjoyed a rebound
as the market grew more comfortable with the country's fiscal policy. Elsewhere,
better yielding opportunities arose among A-rated issues, especially within the
healthcare sector. +
From a supply standpoint, 2006 has been tighter than 2005, with issuance down
about 15% through the first six months. Much of the decrease may be attributed
to the 52% drop in pre-refunded bonds, or new issues featuring better terms
which allow issuers to retire higher yielding debt. As rates have increased,
refinancing activity has subsided significantly. +
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.43% 3.22% 4.35% $15,307
- --------------------------------------------------------------------------------
Class A Shares* -2.23% 2.25% 3.73% $14,421
- --------------------------------------------------------------------------------
Class B Shares** -3.56% 2.25% 3.49% $14,097
- --------------------------------------------------------------------------------
Class C Shares** 0.41% 2.20% 3.30% $13,834
- --------------------------------------------------------------------------------
Advisor Shares*** -0.92% 2.32% 3.63% $14,291
- --------------------------------------------------------------------------------
Lehman Brothers
Quality Intermediate
Municipal Bond Index 1 2.04% 4.10% 5.04% $16,479
- --------------------------------------------------------------------------------
Lipper Intermediate
Municipal Debt Funds Average 1 1.72% 3.68% 4.62% $15,721
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
AAA 60.92%
AA 20.06%
A 7.68%
BBB 8.07%
Net Cash and Equivalents 2.34%
Not Rated 0.93%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
54
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lipper
Fifth Third Intermediate Lehman Brothers Intermediate
Municipal Bond Fund Quality Intermediate Municipal Debt
(Institutional Shares) Municipal Bond Index Funds Average
------------------------ -------------------- --------------
7/31/96 10000 10000 10000
10084 10170 10098
12/96 10314 10406 10312
10288 10407 10308
10563 10683 10579
10819 10946 10832
12/97 11042 11167 11070
11139 11285 11177
11246 11425 11316
11570 11746 11629
12/98 11635 11837 11691
11693 11940 11754
11503 11770 11555
11535 11869 11546
12/99 11517 11871 11505
11749 12060 11711
11905 12245 11856
12133 12503 12104
12/00 12553 12896 12518
12830 13225 12791
12924 13328 12870
13255 13694 13203
12/01 13146 13606 13094
13237 13725 13198
13707 14255 13671
14195 14825 14241
12/02 14229 14862 14244
14364 15027 14376
14615 15369 14699
14645 15446 14718
12/03 14694 15552 14859
14840 15753 15026
14539 15422 14722
14935 15916 15159
12/04 14997 16022 15270
14867 15879 15149
15181 16253 15505
15120 16210 15468
12/05 15178 16289 15548
15156 16282 15562
15170 16308 15564
7/31/06 15307 16479 15721
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmarks,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Quality
Intermediate Municipal Bond Index and the Lipper Intermediate Municipal
Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal
Bond Index is generally representative of intermediate term municipal
bonds with a maturity between two and twelve years. The Lipper
Intermediate Municipal Debt Funds Average is representative of the average
of the total returns reported by all of the mutual funds designated by
Lipper, Inc., which fell into this category.
The Lehman Brothers Quality Intermediate Municipal Bond Index does not
reflect the deduction of fees associated with a mutual fund such as
investment management and fund accounting fees. However, the Lipper
Intermediate Municipal Debt Funds Average and the Fund's performance
reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
55
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Ohio Municipal Bond
Fund (Institutional Shares) returned 1.46% on a net of fee basis,
underperforming its benchmark, the Lehman Brothers Quality Intermediate
Municipal Bond Index, which gained 2.04%.
Taking cues from the U.S. Treasury market, where short-term yields rose faster
than long-term rates, the municipal bond yield curve flattened out during the
period. For example, the average yield on a 3-year municipal bond increased 70
basis points (0.70%), while the average yield on a 30-year municipal bond
increased 12 basis points (0.12%). By comparison, the Federal Reserve raised its
overnight rate from 3.25% to 5.25% during the period--a far more dramatic move
than among Treasury debentures dated 2 years and up, where increases were
restrained by concerns over an economic slowdown.
For much of the period, the Fund's duration was short of the benchmark--a
position designed to mitigate the impact of rising short-term interest rates. By
the end of June, however, the position was adjusted to a slightly longer
duration than the benchmark. Although this helped in July as fixed income
markets rallied on the belief that the Fed had completed its rate-hike campaign,
an underweight stake at the longest end of the yield curve affected returns. +
The Fund's high quality orientation provided stable, consistent returns.
Although the manufacturing industry's struggles and the overall slowing of the
U.S. economy weighed more heavily on select Ohio communities, the state's
overall credit profile remained steady. Efforts to benefit from modestly better
yields led to opportunities among A-rated issues, especially within the
healthcare sector. +
From a supply standpoint, 2006 has been tighter than 2005, with issuance in Ohio
down about 24% through the first seven months. Much of the decrease may be
attributed to a large drop in pre-refunded bonds--new issues featuring better
terms which allow issuers to retire higher yielding debt. As rates have
increased, refinancing activity has subsided significantly. +
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST
IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.46% 3.23% 4.10% $14,949
- --------------------------------------------------------------------------------
Class A Shares* -3.61% 1.98% 3.40% $13,975
- --------------------------------------------------------------------------------
Class B Shares** -4.51% 1.83% 2.98% $13,418
- --------------------------------------------------------------------------------
Class C Shares** 0.44% 2.20% 3.19% $13,686
- --------------------------------------------------------------------------------
Advisor Shares*** -2.41% 2.03% 3.30% $13,840
- --------------------------------------------------------------------------------
Lehman Brothers
Quality Intermediate
Municipal Bond Index 1 2.04% 4.10% 5.04% $16,479
- --------------------------------------------------------------------------------
Lipper Ohio Intermediate
Municipal Debt Funds
Average 1 1.16% 2.98% 3.93% $14,720
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
AAA 41.89%
AA 33.25%
A 14.82%
BBB 9.98%
Net Cash and Equivalents 0.06%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
56
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lipper Ohio
Fifth Third Ohio Lehman Brothers Intermediate
Municipal Bond Fund Quality Intermediate Municipal Debt
(Institutional Shares) Municipal Bond Index Funds Average
---------------------- -------------------- --------------
7/31/96 10000 10000 10000
10048 10170 10082
12/96 10284 10406 10298
10238 10407 10275
10523 10683 10534
10765 10946 10769
12/97 10995 11167 10987
11065 11285 11072
11195 11425 11202
11558 11746 11507
12/98 11613 11837 11549
11637 11940 11597
11372 11770 11366
11344 11869 11347
12/99 11271 11871 11295
11511 12060 11486
11638 12245 11613
11868 12503 11841
12/00 12271 12896 12224
12532 13225 12462
12609 13328 12518
12920 13694 12819
12/01 12832 13606 12700
12896 13725 12792
13343 14255 13232
13821 14825 13732
12/02 13839 14862 13729
13962 15027 13850
14226 15369 14107
14267 15446 14112
12/03 14369 15552 14204
14513 15753 14337
14197 15422 14040
14591 15916 14419
12/04 14654 16022 14470
14529 15879 14352
14837 16253 14618
14758 16210 14567
12/05 14813 16289 14615
14816 16282 14597
14799 16308 14580
7/31/06 14949 16479 14720
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers Quality
Intermediate Municipal Bond Index and the Lipper Ohio Intermediate
Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate
Municipal Bond Index is generally representative of intermediate term
municipal bonds with a maturity between two and twelve years.The Lipper
Ohio Intermediate Municipal Debt Funds Average is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper, Inc., which fell into this category.
The Lehman Brothers Quality Intermediate Municipal Bond Index does not
reflect the deduction of fees associated with a mutual fund such as
investment management and fund accounting fees. However, the Lipper Ohio
Intermediate Municipal Debt Funds Average and the Fund's performance
reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
57
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2006, the Fifth Third Michigan Municipal
Bond Fund (Institutional Shares) gained 1.35% on a net of fee basis,
underperforming its benchmark, the Lehman Brothers 1-5 year Municipal Bond
Index, which returned 1.88%.
Taking cues from the U.S. Treasury market, where short-term yields rose faster
than long-term rates, the municipal bond yield curve flattened out during the
period. For example, the average yield on a 3-year municipal bond increased 70
basis points (0.70%), while the average yield on a 30-year municipal bond
increased 12 basis points (0.12%). By comparison, the Federal Reserve raised its
overnight rate from 3.25% to 5.25% during the period--a far more dramatic move
than among Treasury debentures dated 2 years and up, where increases were
restrained by concerns over an economic slowdown.
In Michigan, the economy remained in somewhat of a holding pattern as it waited
for the fallout from the struggles of large automakers General Motors and Ford.
While it appeared both companies would need to make changes which could be
detrimental to the fiscal health of the eastern half of the state, it was too
early to determine how any moves would play out. Meanwhile, in the western half
of the state, which is less dependent on the auto industry, the economy
performed better. +
Within the Fund, pre-refunded issues, which carry triple-A ratings, weighed on
returns as the best performing group, from a rating perspective, held single-A
ratings. In addition, longer-term bonds purchased with original issue discounts
sagged more than premium debentures as rates rose. +
Providing gains were an assortment of groups including state-issued housing and
student loan bonds, hospital bonds primarily from the western side of the state
and water and sewer revenue bonds from a number of municipalities. During the
period, the Fund's short duration, relative to the benchmark, also enhanced
returns as it mitigated the impact of the rising short-term interest rates. +
- --------------------------------------------------------------------------------
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING
ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST
IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS.
BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL
FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM,
HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A
LOWER RATE OF RETURN.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
-------- -------- -------- ---------
Institutional Shares 1.35% 2.51% 3.59% $14,234
- --------------------------------------------------------------------------------
Class A Shares* -3.61% 1.37% 2.94% $13,361
- --------------------------------------------------------------------------------
Class B Shares** -4.51% 1.13% 2.57% $12,883
- --------------------------------------------------------------------------------
Class C Shares** 0.43% 1.50% 2.57% $12,883
- --------------------------------------------------------------------------------
Advisor Shares*** -2.40% 1.36% 2.75% $13,119
- --------------------------------------------------------------------------------
Lehman Brothers 1-5
Year Municipal Bond Index 1 1.88% 3.16% 4.24% $15,249
- --------------------------------------------------------------------------------
Lipper Other States
Short-Intermediate Municipal
Debt Funds Average 1 1.55% 3.09% 3.68% $14,373
- --------------------------------------------------------------------------------
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%.
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 JULY 31, 2006
AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS +
- --------------------------------------------------------------------------------
[BAR CHART]
AAA 61.72%
AA 20.51%
A 10.45%
BBB 4.99%
Net Cash and Equivalents 0.24%
Not Rated 2.09%
+ PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE.
58
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
- --------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[LINE CHART]
Lipper Other
States Short-
Fifth Third Michigan Lehman Brothers Intermediate
Municipal Bond Fund 1-5 Year Municipal Municipal Debt
(Institutional Shares) Bond Index Funds Average
---------------------- ------------------ --------------
7/31/96 10000 10000 10000
10066 10146 10075
12/96 10222 10329 10226
10222 10353 10255
10431 10568 10436
10622 10765 10615
12/97 10786 10927 10770
10883 11047 10867
10982 11169 10973
11212 11411 11184
12/98 11298 11516 11273
11389 11640 11343
11290 11570 11260
11358 11681 11300
12/99 11373 11712 11331
11493 11841 11461
11627 12009 11553
11821 12209 11747
12/00 12091 12477 12016
12374 12796 12262
12485 12943 12353
12754 13243 12578
12/01 12753 13254 12595
12817 13325 12682
13185 13743 12990
13459 14076 13339
12/02 13545 14192 13389
13662 14316 13502
13799 14481 13676
13893 14619 13760
12/03 13865 14621 13813
13946 14766 13931
13753 14558 13713
13983 14858 13997
12/04 14014 14919 14056
13915 14804 13980
14082 15013 14181
14080 15026 14184
12/05 14126 15072 14230
14123 15093 14245
14156 15138 14277
7/31/06 14234 15249 14373
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.53.COM.
- --------------------------------------------------------------------------------
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark,
and represents the reinvestment of dividends and capital gains in the Fund.
However, the performance does not reflect the deduction of taxes on Fund
distributions, or redemption of shares.
1 The Fund's performance is measured against the Lehman Brothers 1-5 Year
Municipal Bond Index and the Lipper Other States Short-Intermediate
Municipal Debt Funds Average. The Lehman Brothers 1-5 Year Municipal Bond
Index is representative of short term municipal bonds with a maturity
between one and six years. The Lipper Other States Short-Intermediate
Municipal Debt Funds Average is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper, Inc.,
which fell into this category.
The Lehman Brothers 1-5 Year Municipal Bond Index does not reflect the
deduction of fees associated with a mutual fund such as investment
management and fund accounting fees. However, the Lipper Other States
Short-Intermediate Municipal Debt Funds Average and the Fund's performance
reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in its
underlying mutual funds or securities.
2 The ending value represents the value of a $10,000 investment in the
indicated share class for the 10-Year period ended July 31, 2006.
59
This page intentionally left blank.
60
SMALL CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (91.0%)
A.S.V., Inc. * (g) 102,364 $ 1,562
Aaron Rents, Inc. (g) 65,273 1,576
Advanced Analogic Technologies, Inc. * (g) 156,400 1,472
Aeropostale, Inc. * (g) 70,000 1,940
American Medical Systems
Holdings, Inc. * (g) 133,800 2,442
ArthroCare Corp. * (g) 34,300 1,511
Basic Energy Services, Inc. * 74,009 1,998
Beacon Roofing Supply, Inc. * (g) 91,150 1,667
Benchmark Electronics, Inc. * 48,150 1,171
Bucyrus International, Inc., Class A (g) 68,250 3,324
CARBO Ceramics, Inc. (g) 15,100 587
Carpenter Technology Corp. 24,600 2,421
Children's Place Retail Stores, Inc. * (g) 43,400 2,423
Core Laboratories N.V. * 49,300 3,599
Crocs, Inc. * (g) 63,400 1,754
Delek US Holdings, Inc. * (g) 127,586 2,080
Denbury Resources, Inc. * 28,900 1,002
Digene Corp. * 42,900 1,811
East-West Bancorp., Inc. 59,200 2,389
Energy Conversion Devices, Inc. * (g) 65,030 2,188
Epicor Software Corp. * (g) 168,500 1,975
First Cash Financial Services, Inc. * (g) 154,700 2,945
FormFactor, Inc. * (g) 66,000 2,829
Gardner Denver, Inc. * 61,600 2,134
General Cable Corp. * 95,700 3,417
Grey Wolf, Inc. * (g) 202,800 1,553
HealthExtras, Inc. * (g) 90,500 2,349
Hibbet Sporting Goods, Inc. * (g) 69,350 1,370
Hologic, Inc. * (g) 31,800 1,428
Houston Wire and Cable Co. * 130,496 2,456
Hub Group, Inc., Class A * (g) 105,000 2,371
Hub International Ltd. 73,100 1,909
Huron Consulting Group, Inc. * 82,745 2,870
Inventiv Health, Inc. * (g) 51,800 1,445
Jarden Corp. * (g) 68,200 1,977
Labor Ready, Inc. * 70,100 1,143
LKQ Corp. * (g) 105,868 2,371
Morton's Restaurant Group, Inc. * 139,033 2,085
MWI Veterinary Supply, Inc. * 70,100 2,627
NCI, Inc. * 123,738 1,678
NICE Systems, Ltd., ADR * 105,172 2,757
NuVasive, Inc. * (g) 122,458 2,142
OpenTV Corp., Class A * 650,000 2,054
OraSure Technologies, Inc. * 164,100 1,533
Parametric Technology Corp. * 155,320 2,401
PGT, Inc. * 95,700 1,507
Pinnacle Entertainment, Inc. * 57,400 1,574
Providence Service Corp. * (g) 76,404 1,877
Psychiatric Solutions, Inc. * (g) 106,900 3,366
Respironics, Inc. * 66,700 2,373
Sciele Pharma, Inc. * (g) 113,246 2,315
SI International, Inc. * (g) 70,500 1,923
Stage Stores, Inc. 79,000 2,343
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Superior Energy Services, Inc. * 49,900 $ 1,709
Symmetricom, Inc. * (g) 281,400 1,992
Texas Industries, Inc. 47,000 2,321
Thomas Weisel Partners Group, Inc. * (g) 96,172 1,446
Trammell Crow Co. * 43,000 1,482
Trident Microsystems, Inc. * 71,300 1,228
United Natural Foods, Inc. * (g) 75,100 2,264
Vasco Data Security International, Inc. * (g) 242,300 2,096
VCA Antech, Inc. * (g) 77,200 2,700
Volterra Semiconductor Corp. * 105,000 1,531
Witness Systems, Inc. * 55,200 879
Xyratex, Ltd. * 108,000 2,510
Zenith National Insurance Corp. 42,500 1,699
-----------
TOTAL COMMON STOCKS 133,871
-----------
INVESTMENTS IN AFFILIATES (h) (9.1%)
Fifth Third Institutional Money
Market Fund 13,324,078 13,324
-----------
TOTAL INVESTMENTS IN AFFILIATES 13,324
-----------
SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING (36.5%)
Pool of various securities for Fifth Third
Funds $ 53,720 53,720
-----------
TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL
FOR SECURITIES LENDING 53,720
-----------
TOTAL INVESTMENTS (COST $173,171)+ - 136.6% 200,915
LIABILITIES IN EXCESS OF OTHER ASSETS - (36.6)% (53,854)
-----------
NET ASSETS - 100.0% $ 147,061
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
61
MID CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (94.7%)
Advance Auto Parts, Inc. 123,050 $ 3,725
Affiliated Managers Group, Inc. * (g) 45,000 4,120
Allegheny Technologies, Inc. 109,100 6,970
Alliance Data Systems Corp. * (g) 161,100 8,269
Amdocs Ltd. * 167,100 6,062
American Medical Systems Holdings, 358,200 6,537
Inc. * (g)
Autodesk, Inc. * 134,100 4,574
C.H. Robinson Worldwide, Inc. (g) 112,100 5,132
CACI International, Inc., Class A * 77,000 4,339
CapitalSource, Inc. (g) 255,000 6,015
Caremark Rx, Inc. 102,400 5,407
Carters, Inc. * (g) 233,000 5,082
Coach, Inc. * 187,000 5,369
Cognizant Technology Solutions Corp. * 112,100 7,341
Community Health Systems, Inc. * 111,600 4,047
Complete Production Services, Inc. * (g) 126,704 2,610
Comverse Technology, Inc. * 160,292 3,106
Corporate Executive Board Co. 82,000 7,708
Covance, Inc. * (g) 95,200 6,070
Coventry Health Care, Inc. * 88,500 4,664
Cytyc Corp. * 296,900 7,305
D. R. Horton, Inc. (g) 112,100 2,402
DaVita, Inc. * (g) 109,000 5,452
E*TRADE Financial Corp. * 237,800 5,543
Express Scripts, Inc. * 47,300 3,644
Fisher Scientific International, Inc. * (g) 51,800 3,839
FormFactor, Inc. * (g) 102,300 4,386
Gardner Denver, Inc. * 145,000 5,024
GEN-Probe, Inc. * (g) 86,000 4,468
GlobalSantaFe Corp. (g) 142,100 7,807
Herbalife Ltd. * 210,600 7,522
IDEX Corp. 115,100 5,001
Intersil Corp., Class A 206,000 4,843
ITT Industries, Inc. (g) 72,000 3,640
Joy Global, Inc. 144,350 5,416
Laureate Education, Inc. * (g) 128,018 5,844
Manpower, Inc. 98,100 5,835
Marriott International, Inc., Class A (g) 186,300 6,554
Martin Marietta Materials, Inc. (g) 57,000 4,589
Microchip Technology, Inc. 195,737 6,314
MICROS Systems, Inc. * (g) 148,600 5,944
Nabors Industries Ltd. * (g) 188,200 6,647
National-Oilwell Varco, Inc. * 119,100 7,984
NII Holdings, Inc. * (g) 158,000 8,340
Polo Ralph Lauren Corp. 101,100 5,766
Precision Castparts Corp. 114,100 6,806
ProAssurance Corp. * 100,700 5,006
Respironics, Inc. * 163,100 5,803
Scientific Games Corp., Class A * (g) 177,100 6,016
Seagate Technology (g) 163,000 3,782
Starwood Hotels & Resorts
Worldwide, Inc. 129,300 6,798
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Station Casinos, Inc. (g) 81,000 $ 4,444
Stericycle, Inc. * (g) 64,000 4,300
T. Rowe Price Group, Inc. (g) 204,200 8,435
Thermo Electron Corp. * (g) 156,100 5,777
Time Warner Telecom, Inc., Class A * (g) 335,000 5,611
Tractor Supply Co. * (g) 68,500 3,133
Ultra Petroleum Corp. * 74,100 4,339
Urban Outfitters, Inc. * 157,700 2,301
VCA Antech, Inc. * 125,200 4,378
WESCO International, Inc. * (g) 149,100 8,685
Williams-Sonoma, Inc. 109,100 3,469
XTO Energy, Inc. 115,100 5,409
-----------
TOTAL COMMON STOCKS 341,748
-----------
INVESTMENTS IN AFFILIATES (h) (8.4%)
Fifth Third Institutional Money Market
Fund 30,458,427 30,458
-----------
TOTAL INVESTMENTS IN AFFILIATES 30,458
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (29.1%)
Pool of various securities for Fifth
Third Funds $ 105,117 105,117
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 105,117
-----------
TOTAL INVESTMENTS (COST $414,812)+ - 132.2% 477,323
LIABILITIES IN EXCESS OF OTHER ASSETS - (32.2)% (116,311)
-----------
NET ASSETS - 100.0% $ 361,012
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
62
QUALITY GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (99.4%)
Accenture Ltd., Class A (g) 420,000 $ 12,289
ACE Ltd. 299,000 15,407
Alberto-Culver Co. 158,000 7,701
Altera Corp. * (g) 384,000 6,647
AT&T, Inc. 250,000 7,498
Autodesk, Inc. * 287,000 9,790
Bank of America Corp. 435,000 22,416
Best Buy Co., Inc. (g) 521,000 23,622
BJ Services Co. (g) 493,000 17,881
Cadence Design Systems, Inc. * 429,000 6,946
Caremark Rx, Inc. 472,000 24,922
Cephalon, Inc. * 116,000 7,626
Cerner Corp. * (g) 187,000 7,570
Cintas Corp. 95,000 3,354
Cisco Systems, Inc. * 1,455,000 25,972
Coach, Inc. * 503,000 14,441
Corning, Inc. * 599,000 11,423
CVS Corp. 1,034,000 33,832
Dover Corp. 165,000 7,778
First Data Corp. 442,000 18,055
Foster Wheeler Ltd.. * (g) 288,000 10,984
Freescale Semiconductor, Inc., Class A * 447,000 12,798
General Electric Corp. 173,000 5,655
Genzyme Corp. * 284,000 19,392
Gilead Sciences, Inc. * (g) 526,000 32,338
Halliburton Co. (g) 328,000 10,942
Henry Schein, Inc. * (g) 339,000 16,072
Hewlett-Packard Co. 237,000 7,562
Illinois Tool Works, Inc. 252,000 11,525
J.P. Morgan Chase & Co. 337,000 15,373
Kellogg Co. 158,000 7,611
Laboratory Corp. of America Holdings * 118,000 7,601
Lowe's Cos., Inc. 265,000 7,513
Manpower, Inc. 93,000 5,532
Marriott International, Inc., Class A (g) 544,000 19,137
Microsoft Corp. 621,000 14,923
Morgan Stanley 151,000 10,042
MSC Industrial Direct Co., Inc.,
Class A (g) 175,000 7,215
News Corp. 378,000 7,605
Nordstrom, Inc. (g) 426,000 14,612
Northern Trust Corp. (g) 193,000 11,020
Peabody Energy Corp. 153,000 7,635
PepsiCo, Inc. 201,000 12,739
Pharmaceutical Product Development,
Inc. 777,000 29,899
Praxair, Inc. 139,000 7,623
Procter & Gamble Co. 283,000 15,905
QUALCOMM, Inc. 459,000 16,184
Red Hat, Inc. * (g) 363,000 8,596
Republic Services, Inc. 189,000 7,590
Rockwell Automation, Inc. (g) 233,000 14,441
Station Casinos, Inc. (g) 139,000 7,626
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Texas Instruments, Inc. 596,000 $ 17,749
Textron, Inc. 87,000 7,822
The Walt Disney Co. 262,000 7,779
Union Pacific Corp. 130,000 11,050
Varian Medical Systems, Inc. * (g) 206,000 9,336
Vertex Pharmaceuticals, Inc. * (g) 108,000 3,620
Western Digital Corp. * 383,000 6,718
Wyeth 155,000 7,513
Yahoo, Inc. * (g) 200,000 5,428
-----------
TOTAL COMMON STOCKS 745,875
-----------
INVESTMENTS IN AFFILIATES (h) (3.4%)
Fifth Third Institutional Money Market
Fund 25,700,049 25,700
-----------
TOTAL INVESTMENTS IN AFFILIATES 25,700
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (20.4%)
Pool of various securities for Fifth
Third Funds $ 152,650 152,650
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 152,650
-----------
TOTAL INVESTMENTS (COST $872,678)+ - 123.2% 924,225
LIABILITIES IN EXCESS OF OTHER ASSETS - (23.2)% (174,325)
-----------
NET ASSETS - 100.0% $ 749,900
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
63
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (97.4%)
3M Co. 12,775 $ 899
Advanced Micro Devices, Inc. * 633 12
AES Corp. * 85,464 1,697
Air Products and Chemicals, Inc. 24,897 1,592
Alcoa, Inc. 13,440 403
Altria Group, Inc. 15,092 1,207
AMBAC Financial Group, Inc. 7,775 646
American International Group, Inc. 35,151 2,132
AmeriCredit Corp. * (g) 24,009 590
Amgen, Inc. * 3,396 237
Aon Corp. 10,766 369
Applied Biosystems Group 44,630 1,435
Aramark Corp., Class B 14,727 473
Assurant, Inc. 1,537 74
AT&T, Inc. 21,344 640
Autoliv, Inc. 18,368 1,032
Bank of America Corp. 50,089 2,581
Bank of New York Co., Inc. 44,683 1,502
Bear Stearns Cos., Inc. 6,111 867
Biogen Idec, Inc. * 26,584 1,120
Biovail Corp. International 30,221 671
BMC Software, Inc. * (g) 41,240 966
Campbell Soup Co. (g) 2,813 103
Cardinal Health, Inc. 14,285 957
Carolina Group 11,817 678
CBS Corp., Class B 65,081 1,785
CenturyTel, Inc. 2,669 103
Chevron Corp. 62,514 4,112
Circuit City Stores, Inc. 27,627 677
Cisco Systems, Inc. * 195,466 3,489
CIT Group, Inc. 23,936 1,099
Citigroup, Inc. 101,033 4,881
Coca-Cola Enterprises, Inc. 74,631 1,601
Colgate-Palmolive Co. 9,543 566
ConocoPhillips 11,045 758
Coventry Health Care, Inc. * 1,749 92
Danaher Corp. 13,047 851
Darden Restaurants, Inc. 21,372 722
Deere & Co. 3,798 276
DENTSPLY International, Inc. 43,138 1,350
Deutsche Bank AG 9,381 1,084
Dollar Tree Stores, Inc. * 55,638 1,480
E. I. du Pont de Nemours & Co. 48,409 1,920
Eastman Kodak Co. (g) 10,935 243
Emerson Electric Corp. 22,019 1,738
Encana Corp. 4,498 243
Exxon Mobil Corp. 123,593 8,373
Family Dollar Stores, Inc. (g) 53,487 1,215
FedEx Corp. 13,472 1,411
First American Financial Corp. 8,498 315
First Data Corp. 29,041 1,186
FirstEnergy Corp. 23,579 1,320
Freescale Semiconductor, Inc. * 28,892 824
Gap, Inc. 8,313 144
CONTINUED
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
General Dynamics Corp. 32,360 $ 2,169
General Electric Corp. (a) 194,492 6,359
General Mills, Inc. 32,906 1,707
Goldman Sachs Group, Inc. 14,335 2,190
Halliburton Co. 12,136 405
Hewlett-Packard Co. 101,199 3,229
Home Depot, Inc. 42,880 1,488
IAC/InterActiveCorp. * (g) 56,130 1,331
IBM Corp. 47,083 3,645
Illinois Tool Works, Inc. 33,213 1,519
International Paper Co. 17,127 588
Intuit, Inc. * (g) 67,558 2,086
J.C. Penney Co., Inc. (g) 25,707 1,619
J.P. Morgan Chase & Co. 80,828 3,687
Johnson & Johnson 23,252 1,455
Jones Apparel Group, Inc. 39,292 1,163
King Pharmaceuticals, Inc. * (g) 87,920 1,496
Kohl's Corp. * 9,142 518
Kraft Foods, Inc., Class A (g) 46,993 1,523
Kroger Co. (g) 54,378 1,247
Laboratory Corp. of America 24,900 1,605
Holdings * (g)
Lehman Brothers Holdings, Inc. 24,652 1,601
Lexmark International, Inc. * (g) 33,898 1,832
Limited Brands, Inc. (g) 37,321 939
Loews Corp. 36,600 1,356
Manulife Financial Corp. 32,744 1,037
Marathon Oil Corp. 26,228 2,377
Masco Corp. (g) 52,846 1,413
McDonald's Corp. 39,863 1,411
McGraw-Hill Cos., Inc. (g) 26,367 1,484
McKesson, Inc. 4,980 251
MeadWestvaco Corp. 37,111 969
Merck & Co., Inc. 73,118 2,945
Merrill Lynch & Co., Inc. 1,363 99
Micron Technology, Inc. * (g) 118,600 1,849
Microsoft Corp. (a) 215,845 5,186
Morgan Stanley 34,338 2,283
Motorola, Inc. 121,542 2,766
News Corp., Class A 111,760 2,150
Norfolk Southern Corp. 12,099 525
Northrop Grumman Corp. 33,164 2,195
Nucor Corp. 14,048 747
Office Depot, Inc. * 44,477 1,603
Old Republic International Corp. 50,533 1,075
Pepco Holdings, Inc. 52,177 1,278
Pepsi Bottling Group, Inc. 44,178 1,469
PepsiCo, Inc. 3,218 204
Pfizer, Inc. 61,735 1,604
PG&E Corp. 50,100 2,089
PPG Industries, Inc. 14,145 870
Procter & Gamble Co. 26,767 1,504
Quest Diagnostics, Inc. 5,228 314
Raytheon Co. 47,474 2,140
CONTINUED
64
LARGE CAP CORE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Reynolds American, Inc. (g) 5,164 $ 655
Schlumberger, Ltd. 23,457 1,568
Seagate Technology 22,074 512
Sears Holdings Corp. * 10,699 1,468
Southwest Airlines Co. 2,139 38
Sunoco, Inc. 2,120 147
Tesoro Corp. 11,224 840
Texas Instruments, Inc. 82,107 2,445
The PMI Group, Inc. 19,589 832
The Walt Disney Co. 84,383 2,506
Tyco International Ltd. 47,889 1,249
U.S. Bancorp. 51,805 1,658
UBS AG 19,030 1,035
United Parcel Service, Inc. 11,390 785
United Technologies Corp. 983 61
Valero Energy 9,078 612
Verizon Communications, Inc. 79,852 2,701
Wachovia Corp. (g) 37,156 1,993
Wal-Mart Stores, Inc. 7,338 327
Waste Management, Inc. 22,859 786
Wells Fargo & Co. 42,313 3,061
Wyeth 9,470 459
Xerox Corp. * 32,071 452
-----------
TOTAL COMMON STOCKS 183,525
-----------
INVESTMENTS IN AFFILIATES (h) (2.6%)
Fifth Third Institutional Money
Market Fund 4,973,611 4,974
-----------
TOTAL INVESTMENTS IN AFFILIATES 4,974
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (10.1%)
Pool of various securities for Fifth
Third Funds $ 19,054 19,054
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 19,054
-----------
TOTAL INVESTMENTS (COST $190,665)+ - 110.1% 207,553
LIABILITIES IN EXCESS OF OTHER ASSETS - (10.1)% (19,052)
-----------
NET ASSETS - 100.0% $ 188,501
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (96.3%)
3M Co. 25,785 $ 1,815
Abbott Laboratories 52,198 2,493
ACE Ltd. 11,122 573
ADC Telecommunications, Inc. * 4,010 49
Adobe Systems, Inc. * 20,477 584
Advanced Micro Devices, Inc. * (g) 16,557 321
AES Corp. * 22,515 447
Aetna, Inc. 19,392 611
Affiliated Computer Services Inc., Class A * 4,055 207
AFLAC, Inc. 17,053 753
Agilent Technologies, Inc. * 14,563 415
Air Products and Chemicals, Inc. 7,667 490
Alberto-Culver Co. 2,601 127
Alcoa, Inc. 29,758 890
Allegheny Energy, Inc. * (g) 5,586 229
Allegheny Technologies, Inc. 2,985 191
Allergan, Inc. 5,221 563
Allied Waste Industries, Inc. * 8,272 84
Allstate Corp. 21,730 1,235
Alltel Corp. 13,308 734
Altera Corp. * 12,288 213
Altria Group, Inc. 71,416 5,710
Amazon.com, Inc. * (g) 10,576 284
AMBAC Financial Group, Inc. 3,616 301
Ameren Corp. (g) 7,023 362
American Electric Power Co. 13,472 487
American Express Co. 42,198 2,197
American International Group, Inc. 88,836 5,389
American Power Conversion Corp. (g) 5,802 98
American Standard Companies, Inc. 6,051 234
Ameriprise Financial, Inc. 8,358 373
AmerisourceBergen Corp. 7,179 309
Amgen, Inc. * 40,330 2,813
AmSouth Bancorp. 11,836 339
Anadarko Petroleum Corp. 15,682 717
Analog Devices, Inc. 12,352 399
Andrew Corp. * 5,459 46
Anheuser-Busch Co., Inc. 26,430 1,273
Aon Corp. 10,898 373
Apache Corp. 11,298 796
Apartment Investment & Management Co. 3,324 160
Apollo Group, Inc., Class A * 4,786 226
Apple Computer, Inc. * 29,088 1,977
Applied Biosystems Group 6,329 203
Applied Materials, Inc. (g) 53,483 842
Archer-Daniels-Midland Co. 22,382 984
Ashland, Inc. 2,430 162
AT&T, Inc. (g) 132,971 3,988
Autodesk, Inc. * 7,924 270
Automatic Data Processing, Inc. 19,712 863
AutoNation, Inc. * 5,072 100
AutoZone, Inc. * 1,829 161
Avaya, Inc. * (g) 14,057 130
Avery Dennison Corp. 3,754 220
65
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Avon Products, Inc. 15,400 $ 446
Baker Hughes, Inc. 11,654 932
Ball Corp. 3,581 137
Bank of America Corp. 156,075 8,042
Bank of New York Co., Inc. 26,395 887
Barr Pharmaceuticals, Inc. * 3,631 181
Bausch & Lomb, Inc. 1,839 87
Baxter International, Inc. 22,395 941
BB&T Corp. 18,811 790
Bear Stearns Cos., Inc. 4,125 585
Becton, Dickinson & Co. 8,458 558
Bed Bath & Beyond, Inc. * (g) 9,653 323
BellSouth Corp. 61,863 2,423
Bemis Co. 3,585 110
Best Buy Co., Inc. 13,769 624
Big Lots, Inc. * (g) 3,899 63
Biogen Idec, Inc. * 11,760 495
Biomet, Inc. 8,416 277
BJ Services Co. 10,996 399
BMC Software, Inc. * 7,279 170
Boeing Co. 27,346 2,117
Boston Properties, Inc. (g) 3,123 307
Boston Scientific Corp. * 41,555 707
Bristol-Myers Squibb Co. (g) 67,250 1,612
Broadcom Corp., Class A * 15,666 376
Brown-Forman Corp. 2,844 209
Brunswick Corp. (g) 3,235 96
Burlington Northern Santa Fe Corp. 12,472 859
C.R. Bard, Inc. 3,542 251
CA, Inc. 15,605 327
Campbell Soup Co. 6,338 232
Capital One Financial Corp. 10,364 802
Cardinal Health, Inc. 14,285 957
Caremark Rx, Inc. 15,131 799
Carnival Corp. 14,855 578
Caterpillar, Inc. 22,902 1,623
CBS Corp., Class B 26,420 725
Centerpoint Energy, Inc. (g) 10,649 146
Centex Corp. 4,151 196
CenturyTel, Inc. 3,973 153
Charles Schwab Corp. 35,288 560
Chesapeake Energy Corp. (g) 14,101 464
Chevron Corp. 75,807 4,987
Chubb Corp. 14,190 715
Ciena Corp. * (g) 20,099 73
CIGNA Corp. 4,096 374
Cincinnati Financial Corp. 5,926 279
Cintas Corp. 4,716 166
Circuit City Stores, Inc. 5,150 126
Cisco Systems, Inc. * 208,783 3,727
CIT Group, Inc. 6,818 313
Citigroup, Inc. 170,020 8,214
Citizens Communications Co. 11,114 143
Citrix Systems, Inc. * 6,230 198
CONTINUED
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Clear Channel Communications, Inc. 17,212 $ 498
Clorox Co. 5,160 309
CMS Energy Corp. * (g) 7,563 106
Coach, Inc. * 13,166 378
Coca-Cola Co. 70,095 3,119
Coca-Cola Enterprises, Inc. 10,380 223
Colgate-Palmolive Co. 17,602 1,044
Comcast Corp., Class A * (g) 72,261 2,485
Comerica, Inc. 5,555 325
Commerce Bancorp, Inc. (g) 6,299 214
Compass Bancshares, Inc. 4,416 260
Computer Sciences Corp. * 6,423 337
Compuware Corp. * 12,906 90
Comverse Technology, Inc. * 6,909 134
ConAgra, Inc. 17,763 382
ConocoPhillips 56,453 3,875
Consol Energy, Inc. 6,265 258
Consolidated Edison, Inc. (g) 8,406 394
Constellation Brands, Inc., Class A * (g) 6,802 166
Constellation Energy Group, Inc. 6,120 354
Convergys Corp. * 4,792 91
Cooper Industries Ltd., Class A (g) 3,160 272
Corning, Inc. * 53,270 1,016
Costco Wholesale Corp. 16,117 850
Countrywide Credit Industries, Inc. 20,781 745
Coventry Health Care, Inc. * 5,489 289
CSX Corp. 7,578 460
Cummins Engine, Inc. (g) 1,588 186
CVS Corp. 27,990 916
D. R. Horton, Inc. (g) 9,303 199
Danaher Corp. 8,069 526
Darden Restaurants, Inc. 4,410 149
Dean Foods Co. * 4,652 175
Deere & Co. 8,023 582
Dell, Inc. * 77,691 1,684
Devon Energy Corp. 15,048 973
Dillards Department Stores, Inc. 2,114 63
Dollar General Corp. (g) 10,662 143
Dominion Resources, Inc. 11,886 933
Dover Corp. 6,973 329
Dow Chemical Co. 32,891 1,137
Dow Jones & Co. 2,021 71
DTE Energy Co. (g) 6,080 257
Duke Energy Corp. 42,237 1,281
Dynegy, Inc. * 12,623 71
E*TRADE Financial Corp. * 14,584 340
E. I. du Pont de Nemours & Co. 31,508 1,250
Eastman Chemical Co. 2,796 139
Eastman Kodak Co. (g) 9,824 219
Eaton Corp. 5,137 329
eBay, Inc. * 39,546 952
Ecolab, Inc. 6,228 268
Edison International 11,143 461
El Paso Energy Corp. 23,794 381
CONTINUED
66
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Electronic Arts, Inc. * 10,471 $ 493
Electronic Data Systems Corp. 17,731 424
Eli Lilly & Co. 38,651 2,194
Embarq Corp. * (g) 5,098 231
EMC Corp. * 80,871 821
Emerson Electric Corp. 14,038 1,108
Entergy Corp. 7,112 548
EOG Resources, Inc. 8,296 615
Equifax, Inc. 4,397 142
Equity Office Properties Trust (g) 12,522 474
Estee Lauder Companies Inc., Class A 4,064 152
Exelon Corp. 22,863 1,324
Express Scripts, Inc. * 5,028 387
Exxon Mobil Corp. 206,926 14,017
Family Dollar Stores, Inc. 5,312 121
Fannie Mae 33,103 1,586
Federated Department Stores, Inc. 18,920 664
Federated Investors, Inc. 2,887 90
FedEx Corp. 10,435 1,093
Fifth Third Bancorp. (b) 19,033 726
First Data Corp. 26,183 1,070
First Horizon National Corp. (g) 4,215 177
FirstEnergy Corp. 11,281 632
Fiserv, Inc. * 6,009 262
Fisher Scientific International, Inc. * (g) 4,246 315
Fluor Corp. 2,994 263
Ford Motor Co. 64,159 428
Forest Laboratories, Inc. * 11,146 516
Fortune Brands, Inc. 5,015 364
FPL Group, Inc. 13,826 596
Franklin Resources, Inc. 5,246 480
Freddie Mac 23,633 1,367
Freeport-McMoRan Copper & Gold, 6,446 352
Inc., Class B
Freescale Semiconductor, Inc. * 13,877 396
Gannett Co., Inc. 8,133 424
Gap, Inc. 18,811 326
General Dynamics Corp. (g) 13,806 925
General Electric Corp. (a) 355,633 11,626
General Mills, Inc. 12,173 632
General Motors Corp. (g) 19,343 624
Genuine Parts Co. 5,906 246
Genworth Financial, Inc., Class A 12,477 428
Genzyme Corp. * 8,904 608
Gilead Sciences, Inc. * 15,562 957
Golden West Financial Corp. 8,760 645
Goldman Sachs Group, Inc. 14,776 2,257
Goodrich Corp. 4,238 171
Goodyear Tire & Rubber Co. * (g) 6,061 67
Google, Inc., Class A * 7,049 2,725
H & R Block, Inc. 11,232 256
H.J. Heinz Co. 11,458 481
Halliburton Co. 35,308 1,178
Harley-Davidson, Inc. 9,188 524
CONTINUED
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Harman International Industries, Inc. 2,288 $ 183
Harrah's Entertainment, Inc. 6,319 380
Hartford Financial Services Group, Inc. 10,366 879
Hasbro, Inc. 5,888 110
HCA, Inc. 13,956 686
Health Management Associates, Inc., 8,234 168
Class A (g)
Hercules, Inc. * (g) 3,886 54
Hess Corp. 8,247 436
Hewlett-Packard Co. 95,405 3,044
Hilton Hotels Corp. (g) 11,313 271
Home Depot, Inc. 70,692 2,455
Honeywell International, Inc. 28,316 1,096
Hospira, Inc. * 5,343 233
Humana, Inc. * 5,631 315
Huntington Bancshares 8,389 204
IBM Corp. 53,025 4,104
Illinois Tool Works, Inc. 14,164 648
IMS Health, Inc. 6,830 187
Ingersoll-Rand Co., Class A 11,253 403
Intel Corp. 198,946 3,581
International Flavors & Fragrances, Inc. 2,703 100
International Game Technology 11,597 448
International Paper Co. 16,859 578
Interpublic Group Cos., Inc. * (g) 14,920 122
Intuit, Inc. * (g) 11,686 361
ITT Industries, Inc. 6,326 320
J.C. Penney Co., Inc. (g) 8,032 506
J.P. Morgan Chase & Co. 118,833 5,421
Jabil Circuit, Inc. (g) 6,090 141
Janus Capital Group, Inc. (g) 7,238 117
JDS Uniphase Corp. * (g) 57,624 123
Johnson & Johnson 101,269 6,333
Johnson Controls, Inc. 6,668 512
Jones Apparel Group, Inc. 3,850 114
Juniper Networks, Inc. * (g) 19,349 260
KB Home (g) 2,578 110
Kellogg Co. 8,340 402
Kerr-McGee Corp. 7,764 545
KeyCorp 13,824 510
KeySpan Corp. 5,984 241
Kimberly-Clark Corp. 15,724 960
Kinder Morgan, Inc. 3,565 364
King Pharmaceuticals, Inc. * (g) 8,284 141
KLA-Tencor Corp. (g) 6,809 287
Kohls Corp. * (g) 11,643 659
Kroger Co. (g) 24,743 567
L-3 Communications Holdings, Inc. 4,171 307
Laboratory Corp. of America Holdings * (g) 4,265 275
Legg Mason, Inc. 4,516 377
Leggett & Platt, Inc. (g) 6,235 142
Lehman Brothers Holdings, Inc. 18,312 1,189
Lennar Corp., Class A 4,769 213
Lexmark International, Inc. * 3,602 195
CONTINUED
67
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Limited Brands, Inc. (g) 11,733 $ 295
Lincoln National Corp. 9,820 557
Linear Technology Corp. 10,384 336
Liz Claiborne, Inc. 3,574 126
Lockheed Martin Corp. 12,112 965
Loews Corp. 13,886 515
Louisiana-Pacific Corp. 3,632 73
Lowes Cos., Inc. 53,066 1,504
LSI Logic Corp. * 13,568 111
Lucent Technologies, Inc. * (g) 153,217 326
M&T Bank Corp. (g) 2,699 329
Manor Care, Inc. (g) 2,702 135
Marathon Oil Corp. 12,396 1,124
Marriott International, Inc., Class A (g) 11,183 393
Marsh & McLennan Cos., Inc. 18,791 508
Marshall & Ilsley Corp. 7,705 362
Masco Corp. (g) 13,585 363
Mattel, Inc. 13,320 240
Maxim Integrated Products, Inc. 10,968 322
MBIA, Inc. (g) 4,608 271
McCormick & Co. 4,531 159
McDonalds Corp. 42,617 1,508
McGraw-Hill Cos., Inc. 12,237 689
McKesson, Inc. 10,401 524
MeadWestvaco Corp. 6,195 162
Medco Health Solutions, Inc. * 10,317 612
MedImmune, Inc. * (g) 8,508 216
Medtronic, Inc. 41,281 2,086
Mellon Financial Corp. 14,144 495
Merck & Co., Inc. 74,643 3,006
Meredith Corp. 1,446 68
Merrill Lynch & Co., Inc. 31,602 2,301
MetLife, Inc. 25,946 1,349
MGIC Investment Corp. 2,990 170
Micron Technology, Inc. * (g) 24,800 387
Microsoft Corp. 300,045 7,211
Millipore Corp. * 1,818 114
Molex, Inc. 4,855 154
Molson Coors Brewing Co., Class B 1,970 141
Monsanto Co. 18,508 796
Monster Worldwide, Inc. * 4,390 176
Moodys Corp. 8,354 458
Morgan Stanley 36,632 2,436
Motorola, Inc. 84,474 1,923
Murphy Oil Corp. 5,681 292
Mylan Laboratories, Inc. (g) 7,190 158
Nabors Industries Ltd. * (g) 10,616 375
National City Corp. 18,553 668
National Semiconductor Corp. 11,547 269
National-Oilwell Varco, Inc. * 5,984 401
Navistar International Corp. * 2,110 47
NCR Corp. * (g) 6,225 200
Network Appliance, Inc. * 12,797 380
New York Times Co., Class A (g) 4,954 110
CONTINUED
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Newell Rubbermaid, Inc. (g) 9,467 $ 250
Newmont Mining Corp. 15,353 787
News Corp., Class A 80,903 1,557
NICOR, Inc. (g) 1,518 67
Nike, Inc., Class B (g) 6,457 510
NiSource, Inc. 9,325 212
Noble Corp. 4,712 338
Nordstrom, Inc. 7,365 253
Norfolk Southern Corp. 14,183 616
North Fork Bancorp., Inc. 15,910 451
Northern Trust Corp. (g) 6,339 362
Northrop Grumman Corp. 11,757 778
Novell, Inc. * 11,594 75
Novellus Systems, Inc. * (g) 4,352 110
Nucor Corp. 10,657 567
NVIDIA Corp. * (g) 12,056 267
Occidental Petroleum Corp. 14,647 1,578
Office Depot, Inc. * 9,840 355
Officemax, Inc. 2,433 100
Omnicom Group, Inc. 5,835 517
Oracle Corp. * 133,188 1,994
PACCAR, Inc. 5,702 460
Pactiv Corp. * 4,827 118
Pall Corp. 4,269 111
Parametric Technology Corp. * 3,823 59
Parker Hannifin Corp. 4,115 297
Patterson Cos, Inc. * (g) 4,742 158
Paychex, Inc. 11,430 391
Peoples Energy Corp. 1,314 55
Pepsi Bottling Group, Inc. 4,586 152
PepsiCo, Inc. 56,516 3,582
PerkinElmer, Inc. 4,331 78
Pfizer, Inc. 250,603 6,514
PG&E Corp. 11,873 495
Phelps Dodge Corp. 6,971 609
Pinnacle West Capital Corp. 3,393 146
Pitney Bowes, Inc. 7,592 314
Plum Creek Timber Co., Inc. (g) 6,305 215
PMC-Sierra, Inc. * 7,062 36
PNC Financial Services Group 10,123 717
PPG Industries, Inc. 5,665 349
PPL Corp. (g) 13,013 443
Praxair, Inc. 11,051 606
Principal Financial Group 9,473 512
Procter & Gamble Co. 112,229 6,307
Progress Energy, Inc. 8,652 377
Progressive Corp. 26,762 647
Prudential Financial, Inc. (g) 16,827 1,323
Public Service Enterprise Group, Inc. 8,600 580
Public Storage, Inc. (g) 2,830 227
Pulte Homes, Inc. (g) 7,284 208
QLogic Corp. * 5,514 96
QUALCOMM, Inc. 57,326 2,021
Quest Diagnostics, Inc. 5,558 334
CONTINUED
68
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Qwest Communications International, 53,537 $ 428
Inc. * (g)
R.R. Donnelley & Sons Co. 7,391 216
RadioShack Corp. (g) 4,628 75
Raytheon Co. 15,260 688
Realogy Corp. - When Issued 8,552 216
Regions Financial Corp. 15,600 566
Reynolds American, Inc. 2,931 372
Robert Half International, Inc. 5,875 190
Rockwell Automation, Inc. 6,071 376
Rockwell Collins, Inc. 5,851 312
Rohm & Haas Co. 4,970 229
Rowan Cos., Inc. 3,770 128
Ryder Systems, Inc. 2,086 105
Sabre Group Holdings Corp., Class A 4,540 94
SAFECO Corp. 4,077 219
Safeway, Inc. 15,394 432
SanDisk Corp. * (g) 6,680 312
Sanmina-SCI Corp. * 18,223 63
Sara Lee Corp. 25,997 439
Schering-Plough Corp. 50,653 1,035
Schlumberger, Ltd. 40,353 2,697
Sealed Air Corp. 2,790 132
Sears Holdings Corp. * (g) 3,317 455
Sempra Energy 8,861 428
Sherwin-Williams Co. 3,810 193
Sigma-Aldrich Corp. (g) 2,290 159
SLM Corp. 14,052 707
Snap-On, Inc. 1,987 83
Solectron Corp. * 31,274 94
Southern Co. (g) 25,379 857
Southwest Airlines Co. 24,155 435
Sovereign Bancorp, Inc. 13,497 279
Sprint Nextel Corp. (g) 101,885 2,017
St. Jude Medical, Inc. * 12,345 456
St. Paul Cos. 23,812 1,091
Stanley Works (g) 2,418 110
Staples, Inc. (g) 24,902 538
Starbucks Corp. * 26,249 899
Starwood Hotels & Resorts Worldwide, 7,430 391
Inc.
State Street Corp. 11,367 683
Stryker Corp. 10,001 455
Sun Microsystems, Inc. * 119,625 520
Sunoco, Inc. 4,536 315
SunTrust Banks, Inc. 12,436 981
SUPERVALU, Inc. 6,995 190
Symantec Corp. * 35,402 615
Symbol Technologies, Inc. 8,679 96
Synovus Financial Corp. 11,038 312
Sysco Corp. 21,154 584
T. Rowe Price Group, Inc. 9,082 375
Target Corp. 29,529 1,356
Teco Energy, Inc. 7,140 114
CONTINUED
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Tektronix, Inc. 2,861 $ 78
Tellabs, Inc. * 15,325 144
Temple-Inland, Inc. 3,779 161
Tenet Healthcare Corp. * (g) 16,097 95
Teradyne, Inc. * (g) 6,779 89
Texas Instruments, Inc. (g) 53,286 1,587
Textron, Inc. 4,449 400
The Black & Decker Corp. 2,599 183
The E.W. Scripps Co., Class A (g) 2,909 124
The Hershey Company (g) 6,074 334
The McClatchy Co., Class A 1 --#
The Walt Disney Co. 75,065 2,229
Thermo Electron Corp. * 5,598 207
Tiffany & Co. (g) 4,810 152
Time Warner, Inc. 146,452 2,416
TJX Companies, Inc. 15,631 381
Torchmark Corp. (g) 3,432 208
Transocean, Inc. * 11,112 858
Tribune Co. 7,486 222
TXU Corp. 15,815 1,016
Tyco International Ltd. 69,653 1,817
Tyson Foods, Inc., Class A (g) 8,616 122
U.S. Bancorp. 60,873 1,948
Union Pacific Corp. 9,198 782
Unisys Corp. * 11,731 60
United Parcel Service, Inc. 37,096 2,556
United States Steel Corp. (g) 4,272 269
United Technologies Corp. 34,572 2,151
UnitedHealth Group, Inc. 46,068 2,204
Univision Communications, Inc. * 7,628 255
UNUMProvident Corp. 10,240 166
UST, Inc. (g) 5,520 279
V.F. Corp. (g) 3,003 204
Valero Energy 21,049 1,419
VeriSign, Inc. * 8,384 150
Verizon Communications, Inc. 99,771 3,374
Viacom Inc., Class B * 24,660 859
Vulcan Materials Co. 3,441 230
W.W. Grainger, Inc. 2,610 162
Wachovia Corp. (g) 55,012 2,950
Wal-Mart Stores, Inc. 85,514 3,806
Walgreen Co. 34,548 1,616
Washington Mutual, Inc. 32,858 1,469
Waste Management, Inc. 18,644 641
Waters Corp. * 3,540 144
Watson Pharmaceuticals, Inc. * 3,489 78
Weatherford International, Ltd. * 11,925 559
WellPoint, Inc. * 21,801 1,624
Wells Fargo & Co. 57,458 4,157
Wendys International, Inc. 3,988 240
Weyerhaeuser Co. 8,421 494
Whirlpool Corp. (g) 2,667 207
Whole Foods Market, Inc. (g) 4,791 276
Williams Cos., Inc. (g) 20,355 493
CONTINUED
69
EQUITY INDEX FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Windstream Corp. 16,216 $ 203
Wm. Wrigley Jr. Co. 7,593 348
Wyeth 46,033 2,231
Wyndham Worldwide Corp., W/I 6,842 229
Xcel Energy, Inc. (g) 13,868 278
Xerox Corp. * 31,406 442
Xilinx, Inc. (g) 11,748 238
XL Capital Ltd., Class A 6,166 393
XTO Energy, Inc. 12,454 585
Yahoo, Inc. * (g) 42,882 1,164
YUM! Brands, Inc. 9,301 419
Zimmer Holdings, Inc. * 8,487 537
Zions Bancorporation 3,629 298
-----------
TOTAL COMMON STOCKS 392,583
-----------
REAL ESTATE INVESTMENT TRUSTS (i) (0.6%)
Archstone-Smith Trust 7,310 384
Equity Residential Properties Trust (g) 9,961 463
Kimco Realty Corp. (g) 7,237 284
ProLogis 8,378 464
Simon Property Group, Inc. 6,270 536
Vornado Realty Trust (g) 4,067 425
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 2,556
-----------
INVESTMENTS IN AFFILIATES (h) (3.2%)
Fifth Third Institutional Money
Market Fund 12,850,518 12,851
-----------
TOTAL INVESTMENTS IN AFFILIATES 12,851
-----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING (9.5%)
Pool of various securities for
Fifth Third Funds $ 38,883 38,883
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 38,883
-----------
TOTAL INVESTMENTS (COST $228,416) + - 109.6% 446,873
LIABILITIES IN EXCESS OF OTHER ASSETS - (9.6)% (39,202)
-----------
NET ASSETS - 100.0% $ 407,671
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (61.4%)
Abbott Laboratories 18,000 $ 859
Alberto-Culver Co. 17,500 853
Amgen, Inc. * 10,000 697
Anixter International, Inc. (g) 15,900 877
Archer-Daniels-Midland Co. 21,000 924
Associated Banc-Corp. 24,000 753
Bank of America Corp. 18,250 940
Becton, Dickinson & Co. 13,500 890
Best Buy Co., Inc. 19,000 861
Boeing Co. 12,000 929
Borg Warner, Inc. 11,200 672
Chevron Corp. 9,000 592
Cisco Systems, Inc. * 34,250 611
ConocoPhillips 15,000 1,029
Covance, Inc. * 11,000 702
Deere & Co. 11,000 798
DENTSPLY International, Inc. 32,000 1,002
Ecolab, Inc. 16,500 711
Exelon Corp. 15,500 897
Fiserv, Inc. * 22,500 982
Gardner Denver, Inc. * 26,500 918
GlaxoSmithKline PLC ADR 15,000 830
Google, Inc., Class A * 1,450 561
Halliburton Co. 23,000 767
Harley-Davidson, Inc. 12,000 684
Hormel Foods Corp. 25,000 943
Illinois Tool Works, Inc. 23,000 1,052
J.P. Morgan Chase & Co. 19,000 867
Johnson & Johnson 13,500 844
Johnson Controls, Inc. 6,000 461
Joy Global, Inc. 10,000 375
Kellogg Co. (g) 20,000 964
Limited Brands, Inc. 30,000 755
Lincoln National Corp. 15,600 884
Manpower, Inc. 16,000 952
Marshall & Ilsley Corp. 21,500 1,010
McDonald's Corp. 32,000 1,132
Medtronic, Inc. 16,000 808
Merck & Co., Inc. 17,000 685
MGIC Investment Corp. (g) 12,000 683
Noble Corp. 7,300 524
Northern Trust Corp. (g) 20,000 1,141
Oracle Corp. * 62,000 928
Oshkosh Truck Corp. 12,250 525
Peabody Energy Corp. (g) 11,700 584
PepsiCo, Inc. 16,000 1,014
Procter & Gamble Co. 19,000 1,068
Prudential Financial, Inc. (g) 9,500 747
Quest Diagnostics, Inc. 10,500 631
Regal-Beloit Corp. 18,000 716
Reynolds American, Inc. 5,800 735
Rockwell Automation, Inc. 15,000 930
Schlumberger, Ltd. 10,000 669
Stericycle, Inc. * (g) 14,000 941
CONTINUED
70
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Target Corp. 17,000 $ 781
Tellabs, Inc. * 61,000 573
The Walt Disney Co. 27,600 819
U.S. Bancorp. 29,500 944
Walgreen Co. 17,750 830
Weatherford International, Ltd. * 15,500 726
Wells Fargo & Co. 14,250 1,031
Wisconsin Energy Corp. (g) 23,000 971
-----------
TOTAL COMMON STOCKS 50,582
-----------
CORPORATE BONDS (30.1%)
American Home Mortgage Investment $ 1,500 1,420
Trust, Series 2005-2, Class 5A4D,
5.33%, 9/25/35 (d)
Bank One Capital III, 8.75%, 9/1/30 675 844
Bear Stearns Adjustable Rate Mortgage 637 624
Trust, Series 2004-10, Class 12A3,
4.67%, 1/25/35 (d)
Bear Stearns Adjustable Rate Mortgage 965 942
Trust, Series 2005-12, Class 13A1,
5.47%, 2/25/36 (d)
Bear Stearns Alternative-A Trust, Series 456 458
2005-9, 5.85%, 11/25/35 (f)
Bear Stearns Commercial Mortgage 363 369
Securities, Inc., Series 2000-WF2, Class
A1, 7.11%, 10/15/32
Bear Stearns Commercial Mortgage 700 679
Securities, Inc., Series 2004-T14, Class
A4, 5.20%, 1/12/41 (d)
Chase Mortgage Finance Corp., 5.00%, 1,559 1,489
11/25/33
Chase Mortgage Finance Corp., Series 1,961 1,937
2005-A1, Class 2A2, 5.25%, 12/25/35 (d)
Chaseflex Trust, Series 2006-1, Class 400 400
A2A, 5.94%, 6/25/36, (d)
Countrywide Alternative Loan Trust, 268 269
6.50%, 9/25/34, (d)
Countrywide Alternative Loan Trust, 423 420
Series 2005-74T1, Class A1, 6.00%,
1/25/36
Credit Based Asset Service and 515 503
Securitization, Series 2005-CB8, Class
AF5, 5.65%, 12/25/35 (d)
DaimlerChrysler, 8.50%, 1/18/31 65 75
Duke Energy Corp., 6.45%, 10/15/32 225 228
First Union-Lehman Brothers, 7.00%, 630 664
4/18/29 (e)
General Electric Capital Corp., 6.75%, 175 190
3/15/32
General Motors Acceptance Corp., 160 160
Mortgage Corp. Loan Trust, 5.62%,
12/25/20 (d)
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
General Motors Acceptance Corp., $ 385 $ 377
Mortgage Corp. Loan Trust, 4.34%,
11/1/34
General Motors Acceptance Corp., 1,000 1,002
Mortgage Corp. Loan Trust, 5.58%,
3/25/35 (d)
Green Tree Financial Corp., 7.60%, 6/15/25 270 276
Green Tree Financial Corp., Series 43 43
1998-6, Class A6, 6.27%, 6/1/30
Greenwich Capital Commercial Funding 1,000 964
Corp., Series 2002-C1, Class A4, 4.95%,
1/11/35
Greenwich Capital Commercial Funding 700 682
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36
GS Mortgage Securities Corp. II, Series 1,000 978
2004-GG2, Class A3, 4.60%, 8/10/38
IBM Corp., 5.88%, 11/29/32 250 243
IndyMac Index Mortgage Loan Trust, 338 340
Series 2005-AR9, 5.45%, 7/25/35, (d)
JP Morgan Mortgage Trust, Series 406 396
2005-A1, Class 2A1, 4.88%, 2/25/35, (d)
JP Morgan Mortgage Trust, Series 2,000 1,932
2005-A2, Class 3A2, 4.93%, 4/25/35
Morgan Stanley Capital I, 5.11%, 800 770
6/15/40
Morgan Stanley Dean Witter Capital I, 700 669
4.74%, 11/13/36
Morgan Stanley Mortgage Loan Trust, 800 773
5.00%, 8/25/19
Motorola, Inc., 6.50%, 11/15/28 205 207
Residential Accredit Loans, Inc., 5.66%, 680 680
3/25/34 (d) (f)
Residential Asset Securities Corp., 67 67
5.63%, 3/25/34 (d) (f)
Time Warner Entertainment, 8.38%, 120 135
7/15/33
Trans-Canada Pipeline, 5.60%, 3/31/34 195 182
Truck Retail Installment Paper Corp., 2,000 2,005
5.47%, 12/15/16 (d) (e) (f)
Washington Mutual, Series 2004-AR3,
Class A-2, 4.24%, 6/25/34 379 370
-----------
TOTAL CORPORATE BONDS 24,762
-----------
FOREIGN BONDS (0.3%)
France Telecom, 8.75%, 3/1/31 200 247
-----------
TOTAL FOREIGN BONDS 247
-----------
CONTINUED
71
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
TREASURY BONDS (0.2%)
5.25%, 2/15/29 150 $ 152
-----------
TOTAL TREASURY BONDS 152
-----------
U.S. GOVERNMENT AGENCIES (10.4%)
FANNIE MAE (6.5%)
5.50%, 2/1/25 243 239
5.00%, 5/1/25 442 424
7.50%, 6/1/27 34 36
7.50%, 12/1/27 97 101
7.00%, 9/1/31 166 170
7.00%, 6/1/32 14 15
6.00%, 8/25/33 (d) 440 430
7.00%, 9/1/34 12 13
6.00%, 9/1/35 645 641
5.50%, 2/1/36 328 318
5.00%, 9/1/36 TBA 500 473
5.50%, 9/1/36 TBA 2,625 2,548
-----------
5,408
-----------
FREDDIE MAC (3.6%)
4.50%, 8/15/16 1,585 1,515
7.50%, 7/1/27 13 13
7.50%, 8/1/27 46 48
7.50%, 11/1/27 31 32
7.50%, 12/1/27 58 60
6.50%, 5/1/31 174 177
6.50%, 11/1/31 547 556
7.00%, 1/1/32 7 8
7.00%, 8/1/32 33 34
4.50%, 6/1/34 179 165
4.50%, 9/1/34 222 205
6.00%, 10/1/34 144 143
-----------
2,956
-----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (0.3%)
6.50%, 4/15/32 123 126
7.00%, 7/20/32 78 80
-----------
206
-----------
TOTAL U.S. GOVERNMENT AGENCIES 8,570
-----------
INVESTMENTS IN AFFILIATES (h) (0.0%)
Fifth Third Institutional
Money Market Fund 20,564 21
-----------
TOTAL INVESTMENTS IN AFFILIATES 21
-----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUTUAL FUNDS (1.0%)
Materials Select Sector SPDR Trust (g) 26,500 $ 819
-----------
TOTAL MUTUAL FUNDS 819
-----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL FOR
SECURITIES LENDING (7.8%)
Pool of various securities for
Fifth Third Funds $ 6,463 6,463
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 6,463
-----------
TOTAL INVESTMENTS (COST $90,883)+ - 111.2% 91,616
LIABILITIES IN EXCESS OF OTHER ASSETS - (11.2)% (9,262)
-----------
NET ASSETS - 100.0% $ 82,354
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
72
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (91.0%)
A. T. Cross Co., Class A * 151,240 $ 862
Abigail Adams National Bancorp, Inc. 43,000 602
ActivIdentity Corp. * (g) 316,130 1,505
American Bancorp of New Jersey, Inc. 97,150 1,156
Analysts International Corp. * 318,080 690
Anaren, Inc. * 13,000 232
Angelica Corp. 59,230 998
APAC Customer Services, Inc. * 579,930 1,264
Apogee Enterprises, Inc. 160,990 2,313
@Road, Inc. * (g) 246,850 1,079
Audiovox Corp., Class A * 87,820 1,100
B of I Holding, Inc. * 169,800 1,240
Benihana, Inc., Class A * 39,000 854
Benjamin Franklin Bancorp, Inc. 89,200 1,245
Berkshire Hills Bancorp, Inc. 49,770 1,737
Beverly National Corp. 13,009 312
BioScrip, Inc. * 413,791 1,643
Bombay Co., Inc. * (g) 585,430 1,270
Boykin Lodging Co. * 84,890 912
Bradley Pharmaceuticals, Inc. * (g) 79,030 801
Brush Engineered Materials, Inc. * 50,750 1,171
BUCA, Inc. * (g) 176,610 945
CalAmp Corp. * (g) 66,350 417
Calgon Carbon Corp. (g) 261,480 1,585
Catalyst Semiconductor, Inc. * 90,000 293
CBIZ, Inc. * (g) 138,550 1,022
Center Bancorp, Inc. (g) 85,860 1,249
Cepheid, Inc. * (g) 56,590 516
Compudyne Corp. * (g) 124,160 654
Covenant Transport, Inc., Class A * 65,300 856
Crawford & Co., Class A 3,920 27
Crawford & Co., Class B 167,800 1,297
Cutter & Buck, Inc. 56,590 603
Deb Shops, Inc. 31,220 742
DHB Industries, Inc. * 285,000 775
Digimarc Corp. * 188,540 1,173
Dot Hill Systems Corp. * 192,200 609
EFJ, Inc. * (g) 304,780 1,991
Emerson Radio Corp. * (g) 81,270 245
Epic Bancorp 24,000 354
First Clover Leaf Financial Corp. 82,000 918
Frisch's Restaurants, Inc. 15,400 360
Government Properties Trust, Inc. 191,230 1,722
Hancock Fabrics, Inc. (g) 492,740 1,617
Hartmarx Corp. * 303,100 1,897
HealthTronics, Inc. * 1,120 7
Heidrick & Struggles International, Inc. * 12,680 410
Hersha Hospitality Trust 173,100 1,598
Hooper Holmes, Inc. 370,150 1,110
Input/Output, Inc. * (g) 257,590 2,532
K2, Inc. * 80,010 842
KMG America Corp. * 157,900 1,318
Lightbridge, Inc. * 79,030 913
CONTINUED
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Lydall, Inc. * 98,550 $ 883
MAIR Holdings, Inc. * (g) 71,220 395
Material Sciences Corp. * 185,760 1,750
Matrix Bancorp, Inc. * 14,902 354
Maverick Oil & Gas, Inc. * 400,800 261
Maxwell Technologies, Inc. * (g) 84,500 1,526
Meade Instruments Corp. * 104,450 226
Medical Action Industries, Inc. * 72,470 1,607
MEDTOX Scientific, Inc. * 125,870 1,123
MHI Hospitality Corp. 166,800 1,490
Michael Baker Corp. * 34,010 718
Monterey Pasta Co. * (g) 316,040 1,673
Nanometrics, Inc. * 59,520 564
National Atlantic Holdings Corp. * 196,130 1,912
National Dentex Corp. * 88,850 2,039
North Pointe Holdings Corp. * 78,840 575
Northwest Pipe Co. * 25,030 675
On Assignment, Inc. * (g) 156,110 1,335
OSI Systems, Inc. * (g) 113,180 2,036
Osteotech, Inc. * 344,430 1,336
Perceptron, Inc. * 86,073 693
Pharmacopeia Drug Discovery, Inc. * 187,330 849
Plato Learning, Inc. * 208,810 1,103
Powell Industries, Inc. * 61,470 1,440
ProCentury Corp. 99,090 1,446
R.G. Barry Corp. * 102,450 674
Rehabcare Group, Inc. * 55,390 1,037
Rockford Corp. * (g) 193,190 728
Rocky Brands, Inc. * (g) 79,540 881
Russ Berrie & Co., Inc. * 10,000 110
SEMCO Energy, Inc. * 168,310 1,035
SonicWALL, Inc. * 216,980 2,169
Southcoast Financial Corp. * 49,900 1,053
Standard Register Co. 77,080 948
StealthGas, Inc. 68,600 851
Stepan Co. 59,970 1,799
Storm Cat Energy Corp. * 331,900 730
Superior Uniform Group, Inc. 59,440 713
Symmetricom, Inc. * (g) 266,990 1,890
Synplicity, Inc. * (g) 168,900 966
Tasty Baking Co. 80,980 611
Texas United Bancshares, Inc. (g) 56,590 1,838
The Inventure Group, Inc. * 542,890 1,270
The Rowe Cos. * 89,600 76
Top Tankers, Inc. (g) 99,510 607
U.S. Xpress Enterprises, Inc., A Shares * 24,030 559
Ultratech, Inc. * 44,000 666
Universal Electronics, Inc. * 30,250 535
Vignette Corp. * 68,250 887
White Electronic Designs Corp. * 188,310 939
Willbros Group, Inc. * 98,550 1,685
Wolverine Tube, Inc. * (g) 246,850 1,077
Zomax, Inc. * 321,990 470
-----------
TOTAL COMMON STOCKS 108,396
-----------
CONTINUED
73
MICRO CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
INVESTMENT COMPANIES (0.8%)
Equus II, Inc. 86,996 $ 611
MVC Capital, Inc. 29,270 387
-----------
TOTAL INVESTMENT COMPANIES 998
-----------
INVESTMENTS IN AFFILIATES (h) (7.5%)
Fifth Third Institutional Money
Market Fund 8,993,998 8,994
-----------
TOTAL INVESTMENTS IN AFFILIATES 8,994
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (19.4%)
Pool of various securities for Fifth
Third Funds $ 23,113 23,113
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 23,113
-----------
TOTAL INVESTMENTS (COST $126,608)+ - 118.7% 141,501
LIABILITIES IN EXCESS OF OTHER ASSETS - (18.7)% (22,271)
-----------
NET ASSETS - 100.0% $ 119,230
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (96.8%)
Agilysys, Inc. 97,975 $ 1,535
Alexander & Baldwin, Inc. 39,000 1,564
Anixter International, Inc. (g) 38,625 2,129
Arkansas Best Corp. 32,400 1,440
Ashford Hospitalilty Trust (g) 151,075 1,775
Asset Acceptance Capital Corp. * 65,300 1,187
Axcelis Technologies, Inc. * (g) 263,799 1,459
Big Lots, Inc. * (g) 140,000 2,263
Bob Evans Farms, Inc. 81,825 2,254
Briggs & Stratton Corp. (g) 52,900 1,354
Cabot Microelectronics Corp. * (g) 64,625 1,925
Casey's General Stores, Inc. 78,400 1,774
Cash America International, Inc. 17,050 584
Coca-Cola Femsa, SA de CV ADR 86,700 2,638
Community Bank System, Inc. 83,550 1,768
Cost Plus, Inc. * 114,650 1,547
CTS Corp. 120,500 1,736
Endurance Specialty Holdings, Ltd. 53,575 1,627
EnerSys * 185,100 3,337
Ferro Corp. 112,000 1,809
Glatfelter 96,550 1,506
Hawaiian Electric Industries, Inc. (g) 48,500 1,390
Headwaters, Inc. * (g) 60,625 1,403
Hooper Holmes, Inc. 210,500 632
Houston Exploration Co. * 25,000 1,597
Inter-Tel, Inc. 61,725 1,323
Iowa Telecommunications
Services, Inc. 128,350 2,500
Irwin Financial Corp. 133,125 2,614
Jackson Hewitt Tax Service, Inc. 37,225 1,270
Jo-Ann Stores, Inc. * 42,700 606
Journal Communications, Inc. 132,625 1,399
Kindred Healthcare, Inc. * 98,950 2,615
Kronos, Inc. * (g) 60,300 1,750
La-Z-Boy, Inc. (g) 134,275 1,712
Lithia Motors, Inc., Class A 39,650 1,117
Lubrizol Corp. 52,675 2,253
Molina Healthcare, Inc. * 73,175 2,425
Newalliance Bancshares, Inc. 107,350 1,515
Orthofix International N.V. * 31,275 1,232
Overseas Shipholding Group, Inc. (g) 35,650 2,296
Performance Food Group Co. * (g) 77,925 2,172
Perry Ellis International, Inc. * 77,500 2,004
Photronics, Inc. * (g) 90,750 1,268
Pioneer Drilling Co. * 42,075 642
Platinum Underwriters
Holdings, Ltd. 100,000 2,829
Polyone Corp. * (g) 265,900 2,220
Quebecor World, Inc. 245,000 2,638
RailAmerica, Inc. * 112,000 1,124
Sanderson Farms, Inc. (g) 57,950 1,501
Schawk, Inc. (g) 97,800 1,620
Schweitzer-Mauduit
International, Inc. 117,400 2,375
CONTINUED
74
SMALL CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Semitool, Inc. * 172,500 $ 1,531
Service Corp. International 315,400 2,369
South Financial Group, Inc. 59,000 1,594
South Jersey Industries, Inc. 43,000 1,276
Stanley Furniture Co., Inc. (g) 44,275 1,002
Tennant Co. 76,700 1,823
The Steak n Shake Co. * 106,150 1,569
Tidewater, Inc. 17,000 811
Tsakos Energy Navigation Ltd. 56,225 2,514
U-Store-It Trust 102,525 1,954
UCBH Holdings, Inc. (g) 121,250 2,023
UMB Financial Corp. (g) 53,100 1,825
Vectren Corp. 68,000 1,891
Veritas DGC, Inc. * (g) 25,400 1,455
Westar Energy, Inc. (g) 97,400 2,250
Wintrust Financial Corp. (g) 34,675 1,665
YRC Worldwide, Inc. * (g) 34,400 1,368
-----------
TOTAL COMMON STOCKS 118,173
-----------
INVESTMENTS IN AFFILIATES (h) (2.8%)
Fifth Third Institutional Money
Market Fund 3,468,192 3,468
-----------
TOTAL INVESTMENTS IN AFFILIATES 3,468
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (25.1%)
Pool of various securities for Fifth
Third Funds $ 30,712 30,712
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 30,712
-----------
TOTAL INVESTMENTS (COST $146,806)+ - 124.7% 152,353
LIABILITIES IN EXCESS OF OTHER ASSETS - (24.7)% (30,171)
-----------
NET ASSETS - 100.0% $ 122,182
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (98.2%)
3M Co. 35,000 $ 2,464
Abbott Laboratories 103,700 4,954
Alcoa, Inc. 107,600 3,223
Allstate Corp. 25,000 1,421
Alltel Corp. 53,900 2,974
American Electric Power Co. 78,800 2,846
American Express Co. 48,800 2,541
American International Group, Inc. 134,000 8,129
Anadarko Petroleum Corp. 78,000 3,568
Andrew Corp. * (g) 195,200 1,649
Applied Materials, Inc. (g) 224,500 3,534
AT&T, Inc. (g) 75,000 2,249
Autoliv, Inc. 25,000 1,404
Bank of America Corp. 146,400 7,545
Bank of New York Co., Inc. 205,000 6,890
Big Lots, Inc. * (g) 209,800 3,390
Bob Evans Farms, Inc. 122,000 3,360
Borg Warner, Inc. 48,800 2,928
Cadbury Schweppes PLC ADR (g) 58,600 2,301
Charles Schwab Corp. 219,000 3,478
Chevron Corp. 78,100 5,137
CIGNA Corp. 43,900 4,006
Coherent, Inc. * (g) 97,600 3,129
Comerica, Inc. 40,000 2,342
ConAgra, Inc. 195,200 4,197
ConocoPhillips 107,400 7,372
CSX Corp. 13,900 843
Deere & Co. 28,600 2,076
Dover Corp. (g) 39,000 1,838
Dow Chemical Co. 100,000 3,458
Duke Energy Corp. 107,400 3,256
E. I. du Pont de Nemours & Co. 100,000 3,966
Edison International 75,000 3,104
Exxon Mobil Corp. 120,000 8,129
Federated Department Stores, Inc. 66,930 2,350
Florida East Coast Industries, Inc. (g) 60,000 2,810
Foot Locker, Inc. 78,100 2,122
FPL Group, Inc. 75,000 3,236
Gannett Co., Inc. 10,000 521
General Dynamics Corp. 48,400 3,243
General Electric Corp. 107,400 3,511
Georgia Gulf Corp. (g) 44,500 1,133
Global Industries, Ltd. * 120,000 2,002
Goldman Sachs Group, Inc. 15,000 2,291
H.J. Heinz Co. 68,300 2,867
Harris Corp. 82,500 3,758
Hartford Financial Services Group, Inc. 39,000 3,309
Health Management Associates, Inc.,
Class A (g) 93,300 1,900
Hewlett-Packard Co. 86,600 2,763
Home Depot, Inc. 87,800 3,048
Honda Motor Co., Ltd. 73,200 2,412
Honeywell International, Inc. 120,000 4,644
Horace Mann Educators Corp. 89,700 1,522
CONTINUED
75
MULTI CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Input/Output, Inc. * (g) 48,800 $ 480
Intel Corp. 245,000 4,410
J.P. Morgan Chase & Co. 195,200 8,905
JAKKS Pacific, Inc. * (g) 97,600 1,609
Johnson & Johnson 50,000 3,128
Jones Apparel Group, Inc. 48,800 1,444
K2, Inc. * 53,400 561
KeyCorp 97,600 3,601
Kraft Foods, Inc. 50,000 1,620
Laboratory Corp. of America
Holdings * (g) 43,900 2,827
Lubrizol Corp. 83,000 3,550
Manpower, Inc. 35,000 2,082
Marathon Oil Corp. (g) 92,100 8,348
Masco Corp. (g) 60,000 1,604
McDonald's Corp. 107,400 3,801
Methode Electronics, Inc. 111,000 888
MetLife, Inc. (g) 43,900 2,283
Molson Coors Brewing Co., Class B 40,000 2,858
Motorola, Inc. 73,200 1,666
National City Corp. 110,000 3,960
Natuzzi S.p.A. ADR * 19,000 131
New York Community Bancorp, Inc. 97,600 1,594
New York Times Co., Class A (g) 120,000 2,660
NiSource, Inc. 83,000 1,888
Pall Corp. 136,200 3,552
Pepco Holdings, Inc. 161,000 3,944
Pfizer, Inc. 281,000 7,303
Piper Jaffray Cos., Inc. * (g) 38,800 1,986
Pitney Bowes, Inc. 25,000 1,033
Royal Dutch Shell PLC ADR,
A Shares 58,600 4,149
Sabre Group Holdings Corp., Class A 25,000 518
Safeway, Inc. (g) 195,200 5,480
Schering-Plough Corp. 165,900 3,391
Snap-On, Inc. (g) 29,300 1,231
SonicWALL, Inc. * 50,000 500
Standard Register Co. 195,200 2,401
Stanley Works (g) 73,200 3,321
SunTrust Banks, Inc. 43,900 3,462
SUPERVALU, Inc. (g) 126,900 3,440
Symmetricom, Inc. * (g) 98,200 695
TD Ameritrade Holding Corp. (g) 97,000 1,589
The Walt Disney Co. 81,800 2,429
Tidewater, Inc. 55,000 2,623
Triad Hospitals, Inc. * (g) 50,000 1,949
Tyson Foods, Inc., Class A 250,000 3,538
U.S. Bancorp. 78,100 2,499
UCBH Holdings, Inc. (g) 50,000 834
Union Pacific Corp. 28,600 2,431
United Technologies Corp. 19,500 1,213
UST, Inc. (g) 25,000 1,264
Verizon Communications, Inc. 246,000 8,321
Windstream Corp. 55,729 698
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Wyeth 39,000 $ 1,890
YRC Worldwide, Inc. * (g) 29,300 1,166
-----------
TOTAL COMMON STOCKS 317,891
-----------
INVESTMENTS IN AFFILIATES (h) (2.9%)
Fifth Third Institutional Money
Market Fund 9,515,174 9,515
-----------
TOTAL INVESTMENTS IN AFFILIATES 9,515
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (16.2%)
Pool of various securities for Fifth
Third Funds $ 52,482 52,482
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 52,482
-----------
TOTAL INVESTMENTS (COST $309,022)+ - 117.3% 379,888
LIABILITIES IN EXCESS OF OTHER ASSETS - (17.3)% (55,990)
-----------
NET ASSETS - 100.0% $ 323,898
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
76
DISCIPLINED LARGE CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (97.2%)
3M Co. 194,074 $ 13,663
Abbott Laboratories 342,575 16,366
Alcoa, Inc. 345,921 10,360
Allstate Corp. 86,480 4,914
American International Group, Inc. 237,675 14,420
Applied Materials, Inc. 302,680 4,764
AT&T, Inc. (g) 426,712 12,798
Bank of America Corp. 367,540 18,939
Bank of New York Co., Inc. 428,220 14,392
Bristol-Myers Squibb Co. (g) 285,335 6,839
Carnival Corp. (g) 302,681 11,792
Chevron Corp. 345,281 22,713
CIT Group, Inc. 65,091 2,988
ConAgra, Inc. 578,095 12,429
ConocoPhillips 347,649 23,863
Deere & Co. 128,465 9,323
Dow Chemical Co. 246,227 8,514
E. I. du Pont de Nemours & Co. 88,041 3,492
Edison International 132,345 5,476
Embarq Corp. * (g) 17,807 806
Exxon Mobil Corp. 302,681 20,504
Federated Department Stores, Inc. 67,926 2,385
Fiserv, Inc. * 172,960 7,551
Fortune Brands, Inc. 87,858 6,371
FPL Group, Inc. (g) 172,510 7,443
Gannett Co., Inc. (g) 256,932 13,391
General Dynamics Corp. 42,671 2,860
Hartford Financial Services
Group, Inc. 151,340 12,840
Health Management Associates, Inc.,
Class A (g) 261,925 5,333
Honda Motor Co., Ltd. 432,401 14,248
Honeywell International, Inc. 259,440 10,040
IBM Corp. 107,820 8,347
Intel Corp. 648,601 11,675
J.P. Morgan Chase & Co. 487,315 22,232
Johnson & Johnson 85,342 5,338
Kraft Foods, Inc. 341,370 11,060
Lubrizol Corp. 174,493 7,463
Manpower, Inc. 45,478 2,705
Marathon Oil Corp. 216,200 19,596
McDonald's Corp. 164,529 5,823
MetLife, Inc. (g) 428,220 22,267
Molson Coors Brewing Co., Class B 215,639 15,407
Morgan Stanley 302,680 20,128
National City Corp. 389,160 14,010
Parker Hannifin Corp. 108,101 7,809
Pfizer, Inc. 583,740 15,171
Pitney Bowes, Inc. 216,200 8,933
R.R. Donnelley & Sons Co. 172,961 5,049
Sprint Nextel Corp. (g) 345,921 6,849
SunTrust Banks, Inc. 237,820 18,757
The Black & Decker Corp. 65,779 4,638
United Technologies Corp. 151,340 9,412
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
UST, Inc. (g) 367,540 $ 18,579
Verizon Communications, Inc. 351,108 11,874
-----------
TOTAL COMMON STOCKS 594,939
-----------
INVESTMENTS IN AFFILIATES (h) (2.7%)
Fifth Third Institutional Money
Market Fund 16,767,126 16,767
-----------
TOTAL INVESTMENTS IN AFFILIATES 16,767
-----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (12.5%)
Pool of various securities for Fifth
Third Funds $ 76,631 76,631
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 76,631
-----------
TOTAL INVESTMENTS (COST $595,316) + - 112.4% 688,337
LIABILITIES IN EXCESS OF OTHER ASSETS - (12.4)% (75,704)
-----------
NET ASSETS - 100.0% $ 612,633
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
77
LIFEMODEL AGGRESSIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
INVESTMENTS IN AFFILIATES (h) (100.8%)
Fifth Third Disciplined Large Cap
Value Fund 2,138,166 $ 31,474
Fifth Third Institutional Money
Market Fund 14,123,454 14,123
Fifth Third International Equity Fund 1,583,816 20,320
Fifth Third Large Cap Core Fund 1,624,568 24,628
Fifth Third Mid Cap Growth Fund 940,799 15,570
Fifth Third Multi Cap Value Fund 487,257 12,513
Fifth Third Quality Growth Fund * 2,590,262 40,590
Fifth Third Small Cap Growth Fund * 551,568 7,777
Fifth Third Small Cap Value Fund 316,644 6,615
-----------
TOTAL INVESTMENTS IN AFFILIATES 173,610
-----------
TOTAL INVESTMENTS (COST $149,485) + -100.8% 173,610
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8)% (1,457)
-----------
NET ASSETS - 100.0% $ 172,153
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL MODERATELY AGGRESSIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
INVESTMENTS IN AFFILIATES (h) (100.5%)
Fifth Third Bond Fund 1,422,679 $ 13,772
Fifth Third Disciplined Large Cap
Value Fund 3,264,000 48,046
Fifth Third High Yield Bond Fund 1,820,574 17,732
Fifth Third Institutional Money
Market Fund 18,150,509 18,151
Fifth Third Intermediate Bond Fund 2,600,867 24,734
Fifth Third International Equity Fund 2,649,814 33,997
Fifth Third Large Cap Core Fund 2,332,802 35,365
Fifth Third Mid Cap Growth Fund 1,316,796 21,793
Fifth Third Multi Cap Value Fund 716,418 18,398
Fifth Third Quality Growth Fund * 3,948,522 61,873
Fifth Third Short Term Bond Fund 1,819,794 16,833
Fifth Third Small Cap Growth Fund * 697,957 9,841
Fifth Third Small Cap Value Fund 383,329 8,008
-----------
TOTAL INVESTMENTS IN AFFILIATES 328,543
-----------
TOTAL INVESTMENTS (COST $288,443) + - 100.5% 328,543
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (1,476)
-----------
NET ASSETS - 100.0% $ 327,067
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
78
LIFEMODEL MODERATE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
INVESTMENTS IN AFFILIATES (h) (100.0%)
Fifth Third Bond Fund 4,856,134 $ 47,007
Fifth Third Disciplined Large Cap
Value Fund 3,725,663 54,842
Fifth Third High Yield Bond Fund 2,912,761 28,370
Fifth Third Institutional Money
Market Fund 25,058,109 25,058
Fifth Third Intermediate Bond Fund 8,757,840 83,288
Fifth Third International Equity Fund 3,253,833 41,747
Fifth Third Large Cap Core Fund 2,911,152 44,133
Fifth Third Mid Cap Growth Fund 1,527,459 25,279
Fifth Third Multi Cap Value Fund 794,980 20,415
Fifth Third Quality Growth Fund * 4,642,525 72,749
Fifth Third Short Term Bond Fund 6,156,152 56,944
Fifth Third Small Cap Growth Fund * 766,531 10,808
Fifth Third Small Cap Value Fund 481,187 10,052
-----------
TOTAL INVESTMENTS IN AFFILIATES 520,692
-----------
TOTAL INVESTMENTS (COST $490,176) + - 100.0% 520,692
LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (50)
-----------
NET ASSETS - 100.0% $ 520,642
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
LIFEMODEL MODERATELY CONSERVATIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
INVESTMENTS IN AFFILIATES (h) (101.1%)
Fifth Third Bond Fund 1,222,957 $ 11,838
Fifth Third Disciplined Large Cap
Value Fund 661,858 9,743
Fifth Third High Yield Bond Fund 524,542 5,109
Fifth Third Institutional Money
Market Fund 7,336,014 7,336
Fifth Third Intermediate Bond Fund 2,328,766 22,146
Fifth Third International Equity Fund 636,997 8,173
Fifth Third Large Cap Core Fund 417,976 6,337
Fifth Third Mid Cap Growth Fund 197,124 3,262
Fifth Third Multi Cap Value Fund 106,824 2,743
Fifth Third Quality Growth Fund * 768,961 12,050
Fifth Third Short Term Bond Fund 1,543,839 14,280
Fifth Third Small Cap Growth Fund * 72,773 1,026
Fifth Third Small Cap Value Fund 40,140 839
-----------
TOTAL INVESTMENTS IN AFFILIATES 104,882
-----------
TOTAL INVESTMENTS (COST $97,364) + - 101.1% 104,882
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.1)% (1,112)
-----------
NET ASSETS - 100.0% $ 103,770
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
79
LIFEMODEL CONSERVATIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
INVESTMENTS IN AFFILIATES (h) (100.3%)
Fifth Third Bond Fund 994,207 $ 9,624
Fifth Third Disciplined Large Cap
Value Fund 215,011 3,165
Fifth Third High Yield Bond Fund 283,259 2,759
Fifth Third Institutional Money
Market Fund 2,663,302 2,663
Fifth Third Intermediate Bond Fund 1,728,204 16,436
Fifth Third International Equity Fund 147,962 1,898
Fifth Third Large Cap Core Fund 101,863 1,544
Fifth Third Mid Cap Growth Fund 32,270 534
Fifth Third Multi Cap Value Fund 18,807 483
Fifth Third Quality Growth Fund * 253,893 3,978
Fifth Third Short Term Bond Fund 1,180,805 10,922
Fifth Third Small Cap Growth Fund * 30,127 425
Fifth Third Small Cap Value Fund 16,450 344
-----------
TOTAL INVESTMENTS IN AFFILIATES 54,775
-----------
TOTAL INVESTMENTS (COST $54,123) + - 100.3% 54,775
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (183)
-----------
NET ASSETS - 100.0% $ 54,592
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS (7.2%)
Altria Group, Inc. 22,650 $ 1,811
American Capital Strategies Ltd. (g) 15,400 539
Bank of America Corp. 19,900 1,025
BB&T Corp. 4,800 202
Chevron Corp. 8,430 555
Citigroup, Inc. 16,925 818
Duke Energy Corp. 25,800 782
FPL Group, Inc. 13,650 589
General Electric Corp. 10,735 351
Marshall & Ilsley Corp. 4,400 207
PepsiCo, Inc. 1,800 114
Procter & Gamble Co. 11,030 620
Southern Co. 14,900 503
Sysco Corp. 9,525 263
U.S. Bancorp. 20,000 640
Verizon Communications, Inc. 6,950 235
Wachovia Corp. 11,475 615
Wells Fargo & Co. 15,945 1,153
-----------
TOTAL COMMON STOCKS 11,022
-----------
CORPORATE BONDS (24.5%)
AMVESCAP PLC, 5.38%, 2/27/13 $ 500 484
Bankers Trust New York, 7.25%,
10/15/11 1,000 1,078
Bear Stearns Cos., Inc., 4.65%,
7/2/18 1,000 888
Bear Stearns Cos., Inc., Series
2003-AC7, Class A2, 5.25%, 1/25/34 756 736
Citibank Credit Card Issuance Trust,
3.10%, 3/10/10 500 482
Comcast Cable, 7.13%, 6/15/13 500 528
Core Invest Grade Trust, 4.66%,
11/30/07 454 449
Countrywide Home Loans, 4.59%,
10/25/33 1,406 1,319
Countrywide Home Loans, 5.03%,
4/20/35 (d) 498 493
Cox Communications, Inc., 7.75%,
11/1/10 1,000 1,068
Cullen/Frost Cap Trust I, 6.37%, 3/1/34 (d) 1,000 1,017
CVS Corp., 7.77%, 1/10/12 (e) 822 884
Developers Diversified Realty, 3.88%,
1/30/09 1,000 957
Emigrant Cap Trust I, 7.47%, 12/10/33 (d) (e) 1,000 994
First Tennessee Cap II, 6.30%,
4/15/34 (e) 1,500 1,389
Goldman Sachs Group, Inc., 5.25%,
10/15/13 1,000 967
HBOS PLC, 5.38%, 11/1/13 (d) (e) 2,000 1,917
Hutchison Whampoa International,
Ltd., 6.50%, 2/13/13 (e) 1,000 1,026
HVB Funding Trust I, 8.74%, 6/30/31 (e) 1,000 1,201
CONTINUED
80
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
International Lease Finance Corp.,
4.38%, 11/1/09 $ 1,000 $ 959
Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,532
Lehman Brothers Holdings, 4.70%,
10/22/08 (d) 1,000 1,001
Lehman Brothers TRAINS, 6.50%,
8/15/08 (d)(e) 259 261
Marsh & McLennan Cos., Inc., 5.88%,
8/1/33 500 439
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A,
4.53%, 12/25/32 159 158
Motorola, Inc., 6.50%, 11/15/28 (g) 500 506
Pacific Gas & Electric, 4.20%, 3/1/11 1,000 944
Pemex Project Funding Master Trust,
7.88%, 2/1/09 1,000 1,040
Public Service Oklahoma, 4.85%,
9/15/10 500 483
Radian Group, Inc., 5.63%, 2/15/13 500 491
RBS Capital Trust, Class B, 6.80%,
3/31/08 500 499
SLM Corp., 5.11%, 4/1/09 (d) 1,000 962
SLM Corp., 4.88%, 2/1/10 (d) 1,000 959
SLM Corp., 5.54%, 11/21/13 (d) 1,000 971
Sprint Capital Corp, 8.38%, 3/15/12 1,500 1,665
TCI Communications, Inc., 7.88%,
8/1/13 1,100 1,194
Union Pacific Corp., 3.63%, 6/1/10 500 466
Union Planters Corp., 4.38%, 12/1/10 500 478
Washington Mutual, Inc., 4.82%,
10/25/32 81 80
Washington Mutual, Inc., Series
2003-AR10, Class A4, 4.08%, 10/25/33 1,351 1,335
Wells Fargo Mortgage Backed
Securities Trust, 4.98%, 11/25/34 1,000 925
Wells Fargo Mortgage Backed
Securities, Series 2005-AR10, Class
2A14, 4.11%, 6/25/35 (d) 1,000 967
Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,553
-----------
TOTAL CORPORATE BONDS 37,745
-----------
FOREIGN BONDS (1.2%)
Korea Development Bank, 3.88%,
3/2/09 1,000 960
Russian Federation, 8.25%, 3/31/10 (e) 889 927
-----------
TOTAL FOREIGN BONDS 1,887
-----------
CORPORATE BOND EQUIVALENTS (c) (35.8%)
AAG Holding Co., Inc., $1.17 20,000 494
Abbey National PLC, Series B $1.84 24,900 646
Abbey National PLC, Series C $1.84 (g) 60,600 1,554
AMBAC Financial Group, Inc., $1.49 54,100 1,229
CONTINUED
SHARES VALUE
----------- -----------
CORPORATE BOND EQUIVALENTS (c),
CONTINUED
AMBAC Financial Group, Inc., $1.75 52,895 $ 1,328
BAC Capital Trust I, $1.75 64,500 1,622
BAC Capital Trust VI, $1.75 48,600 1,232
BBC Capital Trust II, $2.13 31,000 789
Bear Stearns Capital Trust III, $1.95 58,900 1,477
Citigoup Capital VII, $1.78 124,925 3,171
Cleveland Electric Financial Trust I,
$2.25 10,000 258
Consolidated Edison, $1.81 50,700 1,290
Corp-Backed Trust Certs (CBTCS),
$1.53 60,000 1,402
Corp-Backed Trust Certs (CBTCS),
$1.56 33,500 762
Corp-Backed Trust Certs (CBTCS),
$1.80 15,800 394
Corp-Backed Trust Certs (CBTCS),
$1.97 2,200 56
Corts Countrywide Capital II, $2.00 10,000 254
Corts-Sherwin Williams, $1.81 17,600 438
Corts-TR Verizon Global, $3.13 54,500 1,381
Developers Diversified Realty, $2.15 (g) 48,300 1,237
Dominion CNG Capital Trust I, $1.95 39,800 997
Duke Realty Corp. $1.67 30,000 720
Duquesne Light Co., $1.68 24,000 608
Entergy Arkansas, Inc., $1.50 80,600 1,969
Entergy Mississippi, Inc., $1.50 29,300 706
Federal Realty Investment Trust,
$2.13 43,300 1,089
Financial Security Assurance
Holdings, $1.56 (g) 90,750 2,127
Fleet Captial Trust VII, $1.80 29,200 737
General Electric Capital Corp., $1.53 19,000 456
General Electric Capital Corp., $1.66 59,000 1,478
Glenborough Realty, Series A, $1.94 20,661 513
Harris Preferred Capital, Series A,
$1.84 31,800 801
HRPT Properties Trust, Series B,
$2.19 22,900 592
HSBC Finance Corp. $1.72 32,800 832
HSBC USA, Inc., $1.04 60,000 1,554
Huntington Preferred Cap, Inc.,
$1.97 15,507 454
ING Group NV, $1.80 41,200 1,058
Kimco Reality Preferred, $1.66 39,994 974
MBNA Corp., $2.03 (g) 37,800 975
Merrill Lynch Preferred Capital,
$0.99 80,000 2,050
ML Capital Trust III, $1.75 9,800 250
Morgan Stanley Capital II, $1.81 61,525 1,540
Preferred Plus Trust NAI-1, $2.01 4,400 112
Public Credit & Repack Securities,
$1.78 15,600 390
Public Storage, Inc., Series A, $2.45 15,000 405
Public Storage, Inc., Series S, $1.97 10,000 252
CONTINUED
81
STRATEGIC INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BOND EQUIVALENTS (c),
CONTINUED
Rouchester Gas & Electric, $1.66 42,800 $ 1,076
Saturns JPM, $1.78 12,000 301
Stilwell Financial, $1.97 36,800 933
Suntrust Capital V, $1.76 46,600 1,174
Torchmark Capital Trust I, $1.94 58,819 1,473
USB Capital V, $1.81 14,100 356
Wachovia Funding, Series A, $1.81 79,000 2,150
Wells Fargo Capital Trust V, $1.75 18,600 471
Wells Fargo Capital Trust VI, $1.74 74,550 1,887
Wells Fargo Capital Trust VII, $1.46 33,500 761
-----------
TOTAL CORPORATE BOND EQUIVALENTS 55,235
-----------
PREFERRED STOCKS (c) (7.0%)
Aegon NV, $.77 20,000 506
Barclays Bank PLC, $.07 * 40,000 1,013
Duke Realty Corp., $.72 10,000 247
Equity Residential Properties, $2.15 24,500 627
First Tennessee Bank, $52.28 1,000 1,026
Freddie Mac, $2.50 20,000 816
Freddie Mac, $2.55 (g) 10,000 415
Freddie Mac, $2.85 25,500 1,208
Goldman Sachs Group, Inc., $1.16 (g) 40,000 1,024
Lehman Brothers, $1.92 50,000 1,261
MetLife, Inc., $1.22 40,000 1,033
Source Capital, $2.40 35,600 1,143
U.S. Bancorp, $1.73 20,000 516
-----------
TOTAL PREFERRED STOCKS 10,835
-----------
REAL ESTATE INVESTMENT TRUSTS (i) (6.9%)
AMB Property Corp. 6,450 338
Developers Diversified Realty, Corp. 10,700 565
Duke Realty Corp. (g) 15,100 563
Equity Residential Properties Trust (g) 15,600 726
Health Care Property Investors, Inc. (g) 29,250 802
Kimco Realty Corp. 38,500 1,510
ProLogis 13,650 756
Simon Property Group, Inc. 17,054 1,458
Thornburg Mortgage, Inc. (g) 31,100 796
Vornado Realty Trust (g) 15,300 1,599
Weingarten Realty Investors 36,075 1,442
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 10,555
-----------
U.S. GOVERNMENT AGENCIES (3.0%)
FANNIE MAE (1.1%)
5.125%, 1/2/14 $ 1,000 975
4.28%, 7/1/18 742 719
-----------
1,694
-----------
FEDERAL HOME LOAN MORTGAGE
CORPORATION (0.6%)
5.71%, 10/1/32 (d) 845 859
-----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
U.S. GOVERNMENT AGENCIES, CONTINUED
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (1.3%)
5.49%, 8/16/27 $ 1,150 $ 1,139
4.89%, 7/16/34 1,000 942
-----------
2,081
-----------
TOTAL U.S. GOVERNMENT AGENCIES 4,634
-----------
INVESTMENT COMPANIES (8.7%)
1838 Bond Debenture Trading 127,000 2,167
American Income Fund, Inc. 135,400 1,066
Blackrock Income Trust 108,600 681
Blackrock North American
Government Income 225,000 2,233
Eaton Vance Tax-Advantaged
Dividend Income Fund 23,600 571
ING Prime Rate Trust 160,400 1,139
MFS Government Markets
Income Trust 217,400 1,376
MFS Intermediate Income Trust 49,000 297
Pioneer Interest Shares 90,700 1,000
Templeton Global Income Fund, Inc. 61,374 543
Van Kampen Bond Fund 64,800 1,086
Van Kampen Senior Income Trust 152,000 1,274
-----------
TOTAL INVESTMENT COMPANIES 13,433
-----------
INVESTMENTS IN AFFILIATES (h) (5.4%)
Fifth Third Institutional Money
Market Fund 8,337,817 8,338
-----------
TOTAL INVESTMENTS IN AFFILIATES 8,338
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (4.3%)
Pool of various securities for Fifth
Third Funds $ 6,581 6,581
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 6,581
-----------
TOTAL INVESTMENTS (COST $157,464) + - 104.0% 160,265
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.0)% (6,219)
-----------
NET ASSETS - 100.0% $ 154,046
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
82
DIVIDEND GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (98.5%)
3M Co. 4,775 $ 336
Alberto-Culver Co. 4,275 208
Altria Group, Inc. 5,217 417
American International Group, Inc. 7,437 451
Apache Corp. 2,942 207
AT&T, Inc. 11,275 338
Bank of America Corp. 5,756 297
Becton, Dickinson & Co. 9,440 622
Cardinal Health, Inc. 2,825 189
Chevron Corp. 3,500 230
Citigroup, Inc. 12,360 597
Coca-Cola Co. 10,198 454
DENTSPLY International, Inc. 10,265 321
Ecolab, Inc. 9,775 421
Eli Lilly & Co. 4,058 230
Emerson Electric Corp. 4,710 372
Exxon Mobil Corp. 13,392 908
First Data Corp. 6,705 274
Franklin Resources, Inc. 3,955 362
General Dynamics Corp. 4,005 268
General Electric Corp. 23,153 757
Genzyme Corp. * 4,880 333
Graco, Inc. 1,900 75
IBM Corp. 2,441 189
Illinois Tool Works, Inc. 4,480 205
Johnson & Johnson 12,530 784
Johnson Controls, Inc. 2,775 213
Kellogg Co. (g) 10,870 524
Marriott International, Inc., Class A 12,281 432
Marshall & Ilsley Corp. 10,261 482
McGraw-Hill Cos., Inc. 4,072 229
Medtronic, Inc. 4,570 231
Merrill Lynch & Co., Inc. 5,990 436
Microchip Technology, Inc. 10,630 343
Microsoft Corp. 15,191 365
Nike, Inc., Class B (g) 2,937 232
Noble Corp. 2,897 208
Novartis AG ADR 5,890 332
Nuveen Investments, Inc. 8,080 384
PepsiCo, Inc. 14,036 889
Pfizer, Inc. 6,730 175
Praxair, Inc. 10,165 557
Procter & Gamble Co. 13,950 784
QUALCOMM, Inc. 8,783 310
Sysco Corp. 4,037 111
Target Corp. 5,939 273
Texas Instruments, Inc. 9,760 291
The Hershey Company (g) 3,550 195
United Technologies Corp. 13,457 837
Wachovia Corp. 12,121 650
Walgreen Co. 2,527 118
Weatherford International, Ltd. * 7,908 370
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Wells Fargo & Co. 11,192 $ 810
XTO Energy, Inc. 5,723 269
-----------
TOTAL COMMON STOCKS 20,895
-----------
INVESTMENTS IN AFFILIATES (h) (3.7%)
Fifth Third Institutional Money
Market Fund 773,749 774
-----------
TOTAL INVESTMENTS IN AFFILIATES 774
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (4.1%)
Pool of various securities for Fifth
Third Funds $ 862 862
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 862
-----------
TOTAL INVESTMENTS (COST $21,439)+ - 106.3% 22,531
LIABILITIES IN EXCESS OF OTHER ASSETS - (6.3)% (1,329)
-----------
NET ASSETS - 100.0% $ 21,202
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
83
TECHNOLOGY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
COMMON STOCKS (98.2%)
Agere Systems, Inc. * 60,000 $ 874
Akamai Technologies, Inc. * (g) 24,250 961
Altera Corp. * 75,000 1,297
American Tower Corp., Class A * 25,000 845
Applera Corp.- Celera Genomics Group * 40,000 540
Autodesk, Inc. * 30,000 1,023
BEA Systems, Inc. * (g) 125,000 1,467
Cadence Design Systems, Inc. * (g) 100,000 1,620
Catalina Marketing Corp. 20,000 581
Cephalon, Inc. * (g) 20,750 1,364
Ceradyne, Inc. * (g) 17,500 856
Cisco Systems, Inc. * 30,000 536
Citrix Systems, Inc. * (g) 15,000 477
Comverse Technology, Inc. * 100,000 1,938
Concur Technologies, Inc. * (g) 30,000 392
Convergys Corp. * 27,500 525
Crown Castle International Corp. * 15,000 528
CSG Systems International, Inc. * 25,000 651
Daktronics, Inc. 30,000 844
Digene Corp. * (g) 15,000 633
Exfo Electro-Optical Engineering, Inc. * 100,000 520
First Data Corp. 5,000 204
FormFactor, Inc. * (g) 15,000 643
Freescale Semiconductor, Inc., Class A * 53,500 1,531
GameStop Corp., Class A * (g) 35,000 1,456
Gartner, Inc. * 25,000 356
General Cable Corp. * 15,000 536
Hittite Microwave Corp. * (g) 15,000 611
Hypercom Corp. * 125,000 1,175
Integrated Device Technologies, Inc. * 66,750 1,033
International Game Technology 39,500 1,527
Intersil Corp., Class A 27,500 647
Kinetic Concepts, Inc. * 25,000 1,114
Lattice Semiconductor Corp. * 30,000 177
Lexmark International, Inc. * (g) 27,500 1,486
Lincoln Electric Holdings, Inc. 12,000 689
Linear Technology Corp. (g) 33,250 1,075
Mentor Graphics Corp. * 40,000 551
Microsemi Corp. * 27,500 696
Microsoft Corp. 54,750 1,316
Microstrategy, Inc., Class A * 7,500 618
NDS Group PLC ADR * 20,000 947
Nuance Communications, Inc. * (g) 100,000 926
NVIDIA Corp. * 50,000 1,106
Parametric Technology Corp. * 55,000 850
Phase Forward, Inc. * 100,000 1,117
Polycom, Inc. * 25,000 555
QLogic Corp. * 55,000 962
QUALCOMM, Inc. 34,000 1,199
ResMed, Inc. * 13,000 603
Seagate Technology 35,000 812
Semtech Corp. * 75,000 968
Sigmatel, Inc. * (g) 150,000 738
SonicWALL, Inc. * 25,000 250
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMON STOCKS, CONTINUED
Symbol Technologies, Inc. 137,500 $ 1,520
Technitrol, Inc. 27,500 681
Time Warner Telecom, Inc., Class A * 31,750 532
Triquint Semiconductor * 180,000 850
VeriFone Holdings, Inc. * (g) 30,000 848
Vertex Pharmaceuticals, Inc. * (g) 37,500 1,257
WebEx Communications, Inc. * (g) 30,000 1,028
Western Digital Corp. * 32,500 570
-----------
TOTAL COMMON STOCKS 54,232
-----------
INVESTMENTS IN AFFILIATES (h) (2.9%)
Fifth Third Institutional Money
Market Fund 1,590,595 1,591
-----------
TOTAL INVESTMENTS IN AFFILIATES 1,591
-----------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR SECURITIES
LENDING (30.1%)
Pool of various securities for
Fifth Third Funds $ 16,640 16,640
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 16,640
-----------
TOTAL INVESTMENTS (COST $73,253) + - 131.2% 72,463
LIABILITIES IN EXCESS OF OTHER ASSETS - (31.2)% (17,251)
-----------
NET ASSETS - 100.0% $ 55,212
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
84
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS (90.3%)
AUSTRALIA (3.6%)
Alumina, Ltd. 59,739 $ 292
Amcor, Ltd. 46,386 241
AMP, Ltd. 31,657 219
Ansell, Ltd. 1,145 7
Australia & New Zealand Banking
Group, Ltd. 14,034 271
Australian Gas & Light Co. 5,010 73
BHP Billiton, Ltd. 184,704 3,929
BlueScope Steel, Ltd. 37,741 198
Boral, Ltd. 30,732 177
Brambles Industries, Ltd. (g) 25,713 214
Caltex Australia, Ltd. 20,530 384
Coca-Cola Amatil, Ltd. 18,944 99
Coles Myer, Ltd. 10,427 91
Commonwealth Bank of Australia 29,387 1,009
CSL, Ltd. 3,164 128
CSR, Ltd. 49,853 129
Foster's Group, Ltd. 46,300 191
Insurance Australia Group 43,892 175
James Hardie Industries NV 24,574 132
John Fairfax Holdings, Ltd. 8,521 26
Leighton Holdings, Ltd. 2,707 40
Lend Lease Corp., Ltd. 4,578 50
Macquarie Bank, Ltd. 5,426 257
Macquarie Infrastructure Group 83,850 175
Mayne Pharma, Ltd. * 9,701 20
National Australia Bank, Ltd. 39,390 1,083
Newcrest Mining, Ltd. 17,110 251
Onesteel, Ltd. (g) 29,255 87
Orica, Ltd. 14,750 265
Origin Energy, Ltd. 147,089 851
Paperlinx, Ltd. 23,747 63
QBE Insurance Group, Ltd. 17,030 288
Rinker Group, Ltd. 49,029 495
Rio Tinto, Ltd. (g) 16,022 913
Santos, Ltd. 108,016 952
Sonic Healthcare, Ltd. 1,643 16
Stockland Trust Group 469 2
Suncorp Metway, Ltd. 5,353 79
Sydney Roads Group * 27,950 22
SYMBION Health, Ltd. 9,701 23
TABCORP Holdings, Ltd. (g) 10,500 123
Telstra Corp., Ltd. (g) 51,965 152
Toll Holdings Ltd. 4,810 53
Transurban Group (g) 6,346 34
Westfarmers, Ltd. 8,854 240
Westpac 21,491 362
Woodside Petroleum, Ltd. 59,092 1,937
Woolworths, Ltd. 27,586 402
-----------
17,220
-----------
AUSTRIA (0.8%)
Andritz AG 476 83
Bank Austria Creditanstalt 2,492 320
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
AUSTRIA, CONTINUED
Boehler-Uddeholm AG 2,480 $ 130
Erste Bank Der Oesterreichischen
Sparkassen AG 12,549 724
Flughafen Wein AG 714 55
Immofinanz Immobilien Anlagen * 23,087 265
Mayr-Melnhof Karton AG 291 49
Oesterreichische
Elektrizitaetswirtschafts AG 5,200 252
OMV AG 11,087 680
Raiffeisen Intl Bank Holding AG 1,849 159
Telekom Austria AG 22,713 513
Voest-Alpine Stahl AG (g) 1,257 186
Wiener Staedtische Allgemine
Versicherung AG 1,518 88
Wienerberger Baust 3,975 188
-----------
3,692
-----------
BELGIUM (0.8%)
Agfa Gevaert NV 1,931 45
Bekaert NV 325 30
Belgacom SA 3,263 110
Delhaize Group 1,553 113
Dexia 25,883 634
Fortis 36,918 1,312
Groupe Bruxelles Lambert SA 1,616 170
InBev NV 3,790 199
KBC Bancassurance Holding SA 3,615 394
Solvay SA 2,472 293
UCB SA 4,219 246
Umicore 1,052 133
-----------
3,679
-----------
BERMUDA (0.1%)
Cheung Kong Infrastructure Holdings,
Ltd. 13,000 40
Esprit Holdings, Ltd. 33,000 250
Johnson Electric Holdings, Ltd. 46,500 33
Kerry Properties, Ltd. 12,652 42
Li & Fung, Ltd. 57,200 120
Shagri-La Asia, Ltd. 31,021 64
Yue Yuen Industrial Holdings, Ltd. 13,500 38
-----------
587
-----------
BRAZIL (0.7%)
Aracruz Celulose SA, B Shares 21,000 105
Arcelor Brasil SA 3,690 59
Banco Itau Holding Financeira SA 21,000 645
Centrais Eletricas Brasileiras SA,
B Shares 5,176,000 104
Companhia de Bebidas das Americas 154,000 55
Companhia Siderurgica Nacional SA 4,000 129
Companhia Vale do Rio Doce,
A Shares 58,536 1,170
Empresa Brasileira de Aeronautica S.A
(Embraer) 16,500 142
Souza Cruz SA 3,900 63
CONTINUED
85
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
BRAZIL, CONTINUED
Tele Norte Leste Participacoes SA 13,000 $ 172
Telesp Celular Participacoes SA * 21,249 53
Unibanco - Uniao de Bancos Brasileiros
SA GDR 3,600 250
Usinas Siderurgicas de Minas Gerais SA,
A Shares 4,200 145
-----------
3,092
-----------
DENMARK (0.5%)
A P Moller - Maersk AS 10 76
Danisco AS (g) 900 66
Danske Bank 21,687 832
DSV AS 1,400 225
GN Store Nord AS (g) 12,700 180
Novo Nordisk AS 8,730 538
Novozymes AS 1,950 130
Vestas Wind Systems AS * 5,550 150
William Demant Holdings AS * 1,000 75
-----------
2,272
-----------
FINLAND (1.4%)
Cargotec Corp., B Shares 1,677 69
Fortum Oyj 7,489 203
Kesko Oyj, B Shares 4,103 170
Kone Oyj, B Shares 3,354 150
Metso Oyj, B Shares 4,716 170
Neste Oil Oyj 2,291 79
Nokia Oyj 213,031 4,226
Outokumpo Oyj 9,396 228
Rautaruukki Oyj 3,708 105
Sampo Insurance Co. 13,856 261
Stora Enso Oyj 24,479 362
TietoEnator Oyj 5,565 133
UPM-Kym'mene Oyj 21,307 473
Uponor Oyj 1,282 35
Wartsila Corp. Oyj, B Shares 2,611 101
-----------
6,765
-----------
FRANCE (8.1%)
Accor SA 12,681 748
Alcatel 58,712 662
Alstom * 3,934 341
Arcelor (g) 19,418 1,035
Arkema * 2,028 79
Atos Origin SA * 1,078 50
AXA SA 86,515 2,983
BNP Paribas SA 40,417 3,934
Bouygues 10,422 520
Business Objects SA * 2,957 71
Cap Gemini 4,365 234
Carrefour SA 24,625 1,535
Casino Guichard-Perrachon 2,238 184
CNP Assurances 2,917 278
Compagnie de Saint-Gobain 10,839 774
Compagnie Generale des
Etablissements Michelin 3,038 185
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
FRANCE, CONTINUED
Credit Agricole SA 16,973 $ 682
Dassault Systems SA 2,314 120
Essilor International SA 2,213 221
Euronext NV 2,317 208
European Aeronautic Defence and
Space Co. 8,411 242
France Telecom SA 54,437 1,140
Gecina SA 1,903 246
Groupe Danone 10,041 1,327
Hermes International 1,062 88
Imerys SA 1,299 94
Klepierre 1,607 204
L'Air Liquide SA 4,730 955
L'Oreal SA 8,747 876
Lafarge SA 6,910 836
Lagardere Group SCA 3,721 261
LVMH Moet-Hennessy Louis Vuitton 6,483 651
Neopost SA 1,658 181
Peugeot SA 3,461 182
PPR SA 1,689 226
Publicis Groupe (g) 2,839 106
Renault SA 3,561 389
Safran SA 3,684 72
Sanofi-Aventis 34,761 3,305
Schneider Electric SA 7,778 800
Societe BIC SA 1,476 89
Societe Generale-A 15,897 2,371
Societe Television Francaise 1 3,496 111
Sodexho SA 5,019 255
STMicroelectronics NV 8,706 130
Suez SA 16,628 689
Technip-Coflexip SA 1,654 89
Thales SA 3,488 139
Thomson 6,464 109
Total SA 81,156 5,519
Unibail Union Credit 2,597 482
Veolia Environnement 3,368 183
Vinci SA 4,968 505
Vivendi Universal 23,213 786
Zodiac SA 1,683 96
-----------
38,578
-----------
GERMANY (8.5%)
Adidas-Salomon AG 11,528 538
Allianz AG 21,413 3,363
Altana AG 3,946 227
BASF AG 29,433 2,372
Bayer AG 36,013 1,773
Beiersdorf AG 2,853 150
Celesio AG 4,370 205
Commerzbank AG 32,417 1,140
Continental AG 7,178 736
DaimlerChrysler AG 44,315 2,292
Deutsche Bank AG 27,128 3,140
CONTINUED
86
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
GERMANY, CONTINUED
Deutsche Boerse AG 5,605 $ 794
Deutsche Lufthansa AG 12,571 235
Deutsche Post AG 39,484 977
Deutsche Postbank AG 2,905 212
Deutsche Telekom AG 157,542 2,439
E.ON AG 34,023 4,107
Fresenius Medical Care AG 3,516 424
Heidelberger Druckmaschinen AG 2,900 120
Henkel KGaA 3,349 398
Hochtief AG 3,045 158
Hypo Real Estate Holding AG 7,464 415
Infineon Technologies AG * 35,239 377
Karstadt AG * (g) 4,366 103
Linde AG 4,310 364
MAN AG 8,720 631
Merck KGAA 2,696 246
Metro AG 7,872 449
Muenchener Rueckver AG 10,806 1,489
Porsche AG 387 380
Puma AG Rudolf Dassler Sport 680 247
RWE AG 2,000 159
RWE AG 22,764 1,996
SAP AG 12,216 2,233
Siemens AG 44,261 3,573
Suedzucker AG (g) 4,457 108
Thyssen Krupp AG 20,056 700
TUI AG (g) 12,610 257
Volkswagen AG (g) 8,534 641
-----------
40,168
-----------
GREAT BRITAIN (19.9%)
3I Group PLC 2,424 42
Aegis Group PLC 34,975 79
AMEC PLC 12,375 64
Amvescap PLC 3,733 36
Anglo American PLC 53,387 2,229
ARM Holdings PLC 44,473 97
Arriva PLC 10,995 113
Associated British Ports Holdings PLC 19,494 330
AstraZeneca PLC 73,208 4,469
Aviva PLC 114,821 1,540
BAE Systems PLC 130,854 873
Balfour Beatty 21,507 144
Barclays PLC 221,223 2,595
Barratt Developments PLC 6,653 120
BBA Group PLC 30,027 141
Bellway PLC 3,499 77
Berkeley Group Holdings PLC * 3,666 84
BG Group PLC 133,581 1,796
BHP Billiton PLC 93,576 1,772
BOC Group PLC 19,198 575
Boots Group PLC 18,784 276
BP PLC 780,078 9,397
Brambles Industries PLC 3,701 30
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
British Airways PLC * 25,641 $ 185
British American Tobacco PLC 49,480 1,334
British Land Co. PLC 14,566 372
British Sky Broadcasting Group PLC 28,331 297
BT Group PLC 305,111 1,355
Bunzl PLC 16,193 189
Burberry Group PLC 7,387 66
Cadbury Schweppes PLC 83,589 817
Capita Group PLC 3,380 33
Carnival PLC 9,335 372
Centrica PLC 82,105 449
Close Brothers Group PLC 665 11
Cobham PLC 48,564 151
Compass Group PLC 112,548 537
Corus Group PLC 34,053 273
Daily Mail & General Trust 8,477 90
Diageo PLC 154,707 2,719
Dixons Group PLC 51,800 193
Electrocomponents PLC 20,828 92
EMAP PLC 7,086 92
EMI Group PLC 22,340 107
Enterprise Inns PLC 18,788 341
FirstGroup PLC 25,542 214
FKI PLC 19,992 37
Friends Provident PLC 87,895 299
George Wimpey PLC 10,884 98
GKN PLC 19,649 95
Glaxosmithkline PLC 249,681 6,906
Group 4 Securicor PLC 5,825 18
GUS PLC 20,830 392
Hammerson PLC 8,008 187
Hanson PLC 27,658 340
Hays PLC 8,139 20
HBOS PLC 126,833 2,309
HSBC Holdings PLC 363,484 6,591
ICAP PLC 2,480 22
IMI PLC 20,114 190
Imperial Chemical Industries PLC 45,589 316
Imperial Tobacco Group PLC 20,578 673
InterContinental Hotels Group PLC 22,077 357
International Power PLC 9,592 53
Invensys PLC * 251,292 87
ITV PLC 97,501 177
J Sainsbury PLC 44,940 295
Johnson Matthey PLC 8,435 204
Kelda Group PLC 13,820 215
Kesa Electricals PLC 8,163 47
Kingfisher PLC 31,317 143
Ladbrokes PLC 30,621 221
Land Securities Group PLC 13,012 480
Legal & General Group PLC 291,166 676
Liberty International PLC 7,004 150
Lloyds TSB Group PLC 176,828 1,780
CONTINUED
87
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
Logica PLC 37,077 $ 118
London Stock Exchange Group PLC 1,096 23
Man Group PLC 1,505 69
Marks & Spencer PLC 42,231 471
Meggitt PLC 21,954 122
Misys PLC 23,956 109
Mitchells & Butlers PLC 27,489 272
National Express Group PLC 8,899 136
National Grid PLC 98,436 1,121
Next PLC 6,598 210
Pearson PLC 20,364 277
Persimmon PLC 7,497 179
Provident Financial PLC 1,305 14
Prudential Corp. PLC 82,550 867
Punch Taverns PLC 13,133 216
Reckitt Benckiser PLC 23,680 950
Reed Elsevier PLC 32,223 321
Rentokil Initial PLC 9,250 28
Resolution PLC 1,014 11
Reuters Holding PLC 37,796 277
Rexam PLC 21,397 202
Rio Tinto PLC 40,541 2,094
Rolls-Royce Group PLC 61,986 510
Royal & Sun Alliance Insurance
Group PLC 119,897 300
Royal Bank of Scotland Group PLC 95,869 3,119
Royal Dutch Shell PLC 148,733 5,247
Royal Dutch Shell PLC, B Shares 103,914 3,826
Sage Group PLC 57,209 248
Schroders PLC 635 11
Scottish & Southern Energy PLC 30,125 681
Scottish Power PLC 50,980 576
Serco Group PLC 2,367 15
Severn Trent PLC 14,055 341
Signet Group PLC 41,542 78
Slough Estates PLC 11,434 142
Smith & Nephew PLC 17,131 148
Smiths Industries PLC 21,670 365
Stagecoach Group PLC 47,328 99
Tate & Lyle PLC 28,676 367
Taylor Woodrow PLC 16,288 105
Tesco PLC 258,299 1,734
Tompkins PLC 38,925 205
Unilever PLC 61,963 1,465
United Business Media PLC 7,678 91
United Utilities PLC 5,154 64
Vodafone Group PLC 1,955,335 4,246
Vodafone Group PLC, B Shares (j) 2,234,668 626
Whitbread PLC 11,647 270
William Hill PLC 21,682 239
Wolseley PLC 23,361 497
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
WPP Group PLC 24,954 $ 295
Yell Group PLC 17,214 164
-----------
94,707
-----------
GREECE (0.3%)
Alpha Bank A.E 14,112 362
EFG Eurobank Ergasias 7,234 204
National Bank of Greece SA 12,654 492
OPAP SA 7,500 272
Titan Cement Co. 2,300 112
-----------
1,442
-----------
HONG KONG (1.0%)
ASM Pacific Technology, Ltd. 1,500 8
Bank of East Asia, Ltd. 45,249 187
BOC Hong Kong Holdings, Ltd. 111,000 226
Cathay Pacific Airways, Ltd. 30,000 54
Cheung Kong Infrastructure
Holdings, Ltd. 46,000 498
CLP Holdings, Ltd. 56,180 333
Hang Lung Properties, Ltd. 56,000 111
Hang Seng Bank, Ltd. 23,500 300
Henderson Land Development, Ltd. 23,000 126
Hong Kong & China Gas Co., Ltd. 121,348 275
Hong Kong Electric Holdings, Ltd. 43,000 205
Hong Kong Exchanges & Clearing, Ltd. 31,000 201
Hopewell Holdings, Ltd. 19,000 54
Hutchison Telecommunications
International, Ltd. * 40,000 69
Hutchison Whampoa, Ltd. 64,000 585
Hysan Development Co., Ltd. 18,908 53
MTR Corp. 42,650 109
New World Development Co., Ltd. 70,649 121
PCCW, Ltd. 109,047 69
Sino Land Company, Ltd. 24,401 41
Sun Hung Kai Properties, Ltd. 40,136 422
Swire Pacific, Ltd. 29,000 301
Techtronic Industries Co., Ltd. 28,500 38
Television Broadcasts, Ltd. 9,000 55
The Link REIT * 50,000 105
Wharf Holdings, Ltd. 36,600 136
-----------
4,682
-----------
INDONESIA (0.0%)
PT Mulia Industrindo Tbk * 19,000 -- #
-----------
IRELAND (0.1%)
Depfa Bank PLC 17,593 298
-----------
JAPAN (27.5%)
Acom Co., Ltd. 1,120 51
Advantest 5,200 504
AEON Co., Ltd. 27,000 630
AEON Credit Service Co., Ltd. 900 19
Aiful Corp. 1,050 41
Ajinomoto Co., Inc. 31,400 353
CONTINUED
88
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Alps Electric Co., Ltd. 9,000 $ 111
Amada Co., Ltd. 16,000 170
Asahi Breweries, Ltd. 20,900 305
Asahi Glass Co., Ltd. 62,800 805
Asahi Kasei Corp. 62,000 386
Asatsu, Ltd. 1,200 39
Astellas Pharma, Inc. 31,100 1,237
Bank of Kyoto, Ltd. 15,000 155
Bank of Yokohama, Ltd. 75,000 601
Benesse Corp. 2,700 96
Bridgestone Corp. 47,000 855
Canon, Inc. 58,200 2,798
Casio Computer Co., Ltd. (g) 17,000 336
Central Japan Railway Co. 69 764
Chiba Bank, Ltd. 48,000 470
Chiyoda Corp. (g) 10,000 192
Chubu Electric Power Co., Inc. 24,300 589
Chugai Pharmaceutical Co., Ltd. 16,004 330
Citizen Watch Co., Ltd. (g) 19,300 165
COMSYS Holdings Corp. 9,000 104
Credit Saison Co., Ltd. 2,600 113
CSK Corp. 4,100 168
Dai Nippon Printing Co., Ltd. 22,600 356
Daicel Chemical Industries, Ltd. 9,000 66
Daiichi Sanko Co., Ltd. 41,400 1,138
Daikin Kogyo Corp. 9,100 294
Dainippon Ink & Chemicals, Inc. 32,000 111
Daito Trust Construction Co., Ltd. 7,500 408
Daiwa House Co., Ltd. 38,600 629
Daiwa Securities Group, Ltd. 171,000 1,911
Denki Kagaku Kogyo Kabushiki
Kaisha, Ltd. 20,000 81
Denso Corp. 34,350 1,178
Dentsu, Inc. 24 71
Dowa Mining Co., Ltd. (g) 28,000 252
E*TRADE Securities Co., Ltd. 107 143
East Japan Railway Co. 198 1,473
Ebara Corp. 16,800 70
Eisai Co., Ltd. 16,702 771
FamilyMart Co., Ltd. 2,900 88
Fanuc Co., Ltd. 9,600 801
Fast Retailing Co., Ltd. 3,800 309
Fuji Electric Holdings Co., Ltd. 11,000 54
Fuji Photo Film Co., Ltd. 22,600 761
Fuji Soft ABC, Inc. 2,200 73
Fuji Television Network 29 60
Fujikura 14,000 175
Fujitsu, Ltd. 85,000 659
Furukawa Electric Co., Ltd. (g) 30,800 199
Hankyu Department Stores, Inc. (g) 4,000 31
Hirose Electric Co., Ltd. 2,800 361
Hitachi Chemical Co., Ltd. 1,000 24
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Hitachi Construction Machinery
Co., Ltd. 1,200 $ 28
Hitachi, Ltd. 166,000 1,063
Hokkaido Electric Power Co., Inc. 6,900 167
Hokuhoku Financial Group, Inc. 79,000 298
Honda Motor Co., Ltd. 96,102 3,170
Hoya Corp. 24,700 864
IBIDEN Co., Ltd. 5,500 266
Index Corp. (g) 53 42
INPEX Holdings, Inc. * 21 198
Isetan Co., Ltd. 10,500 165
Ishikawajima-Harima Heavy Industries
Co., Ltd. 56,000 158
Itochu Corp. 71,000 640
Itochu Techno-Science Corp. (g) 1,700 76
Japan Airlines System Corp. * (g) 43,000 79
Japan Real Estate Investment Corp. 24 209
Japan Retail Fund Investment Corp. 21 162
Japan Tobacco, Inc. 175 670
JFE Holdings, Inc. 18,300 731
JGC Corp. 14,000 232
Joyo Bank, Ltd. 54,000 330
JS Group Corp. 12,800 263
JSR Corp. 8,200 193
Kajima Corp. 67,400 283
Kaneka Corp. 12,000 107
Kansai Electric Power Co., Inc. 33,800 778
Kao Corp. 28,000 728
Kawasaki Heavy Industries, Ltd. 57,000 173
Kawasaki Kisen Kaisha, Ltd. (g) 4,000 23
Keihin Electric Express Railway
Co., Ltd. (g) 13,000 92
Keio Electric Railway Co., Ltd. 9,000 56
Keyence Corp. 3,000 685
Kikkoman Corp. 6,000 77
Kinki Nippon Railway Co., Ltd. (g) 79,230 249
Kirin Brewery Co., Ltd. 43,400 644
Kobe Steel, Ltd. 90,000 272
Kokuyo Co., Ltd. (g) 2,900 48
Komatsu, Ltd. 55,400 1,114
Komori Corp. 1,000 22
Konami Co., Ltd. 5,700 139
Konica Corp. 27,500 350
Kubota Corp. 76,000 699
Kuraray Co., Ltd. 19,500 215
Kurita Water Industries, Ltd. 3,500 65
Kyocera Corp. 8,300 680
Kyowa Hakko Kogyo Co., Ltd. 15,000 109
Kyushu Electric Power Co., Inc. 15,200 355
Lawson, Inc. 2,600 89
Leopalace 21 Corp. 9,900 346
Mabuchi Motor Co., Ltd. (g) 1,800 121
Marubeni Corp. 69,800 371
CONTINUED
89
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Marui Co., Ltd. 26,900 $ 383
Matsui Securities Co., Ltd. 100 1
Matsushita Electric Industrial Co., Ltd. 98,000 2,039
Matsushita Electric Works 16,000 178
Meiji Seika Co., Ltd. 7,000 35
Meitec Corp. 1,300 42
Millea Holdings, Inc. 73 1,414
Minebea Co., Ltd. 19,000 97
Mitsubishi Chemical Holdigs Corp. 43,500 274
Mitsubishi Corp. 62,300 1,277
Mitsubishi Electric Corp. 107,800 846
Mitsubishi Estate Co., Ltd. 101,000 2,093
Mitsubishi Heavy Industries, Ltd. 182,000 745
Mitsubishi Logistics Corp. 3,000 44
Mitsubishi Materials Corp. 91,000 361
Mitsubishi Rayon Co., Ltd. 27,000 205
Mitsubishi Tokyo Financial Group, Inc. 372 5,258
Mitsubishi UFJ Securities Co., Ltd. 24,000 270
Mitsui & Co., Ltd. 76,800 1,170
Mitsui Chemicals, Inc. 24,000 151
Mitsui Fudosan Co., Ltd. 71,400 1,517
Mitsui Mining & Smelting Co., Ltd. 56,000 319
Mitsui O.S.K. Lines, Ltd. (g) 10,000 66
Mitsui Sumitomo Insurance Co. 60,230 709
Mitsui Trust Holding, Inc. 36,513 401
Mitsukoshi, Ltd. 28,000 130
Mizuho Financial Group, Inc. 439 3,689
Murata Manufacturing Co., Ltd. 11,200 741
NEC Corp. 110,200 609
NEC Electronics Corp. * (g) 2,600 79
Net One Systems Co., Ltd. (g) 33 51
New Oji Paper Co. 52,400 304
NGK Insulators, Ltd. 20,600 264
NGK Spark Plug Co., Ltd. 12,000 251
Nidec Corp. 5,300 376
Nikko Cordial Corp. 72,000 859
Nikon Corp. (g) 15,000 266
Nintendo Co., Ltd. 6,200 1,158
Nippon Building Fund, Inc. (g) 28 276
Nippon Electric Glass Co., Ltd. 10,000 223
Nippon Express Co., Ltd. 40,600 206
Nippon Meat Packers, Inc. 9,600 113
Nippon Mining Holdings, Inc. 25,500 216
Nippon Oil Co., Ltd. 76,600 600
Nippon Paper Group, Inc. 44 175
Nippon Sheet Glass Co., Ltd. (g) 21,000 101
Nippon Steel Corp. 230,800 898
Nippon Telegraph and
Telephone Corp. 145 758
Nippon Yusen Kabushiki Kaisha 60,000 386
Nishi-Nippon City Bank, Ltd. 42,000 186
Nissan Chemical Industries, Ltd. 7,000 88
Nissan Motors Co., Ltd. 143,400 1,546
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Nisshin Seifun Group, Inc. 6,000 $ 68
Nisshin Steel Co., Ltd. 9,000 27
Nisshinbo Industries, Inc. 3,000 32
Nissin Food Products Co., Ltd. 4,100 150
Nitto Denko Corp. 9,900 719
Nomura Holdings, Inc. 168,900 2,998
Nomura Research Institute, Ltd. 1,400 188
NSK, Ltd. 37,000 284
NTN Corp. 27,000 204
NTT Data Corp. 79 359
NTT DoCoMo, Inc. 190 277
Obayashi Corp. 44,000 284
OBIC Co., Inc. 400 85
Oki Electric Industry Co., Ltd. (g) 33,000 69
Okumura Corp. 12,000 62
Olympus Optical Co., Ltd. 8,000 230
Omron Corp. 11,000 277
Onward Kashiyama Co., Ltd. 4,000 53
Oracle Corp. Japan 2,000 88
Oriental Land Co., Ltd. 2,700 148
Osaka Gas Co., Ltd. 91,200 308
Pioneer Electronic Corp. (g) 8,601 141
Promise Co., Ltd. 1,450 65
Resona Holdings, Inc. 223 698
Ricoh Co., Ltd. 32,000 645
Rohm Co., Ltd. 7,400 629
Sampo Japan Insurance, Inc. 41,000 554
Sanken Electric Co., Ltd. 7,000 90
Sanyo Electric Co., Ltd. * (g) 81,000 163
Secom Co., Ltd. 9,100 444
Seiko Epson Corp. (g) 5,500 154
Sekisui Chemical Co., Ltd. 20,000 173
Sekisui House, Ltd. (g) 48,600 689
Seven & I Holdings Co., Ltd. 36,180 1,262
Sharp Corp. 41,200 696
Shimachu Co., Ltd. 2,500 66
Shimamura Co., Ltd. 1,300 133
Shimano, Inc. 4,600 138
Shimizu Construction Corp. (g) 47,600 254
Shin-Etsu Chemical Co. 18,948 1,098
Shinko Securities Co., Ltd. 22,000 79
Shinsei Bank, Ltd. 68,000 424
Shionogi & Co., Ltd. 19,000 361
Shisiedo Co., Ltd. 17,800 356
Shizuoka Bank, Ltd. (g) 40,000 455
Showa Denko KK 32,000 131
Showa Shell Sekiyu KK 10,000 125
Skylark Co., Ltd. (g) 7,000 151
SMC Corp. 3,400 435
Softbank Corp. (g) 46,200 848
Sony Corp. 35,398 1,630
Stanley Electric Co., Ltd. 5,600 119
Sumitomo Bakelite Co. 6,000 53
CONTINUED
90
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Sumitomo Chemical Co., Ltd. 65,600 $ 518
Sumitomo Corp. 46,200 655
Sumitomo Electric Industries 34,400 451
Sumitomo Heavy Industries, Ltd. 23,000 200
Sumitomo Metal Industry, Ltd. 136,000 543
Sumitomo Metal Mining Co., Ltd. 52,600 742
Sumitomo Mitsui Financial Group, Inc. 273 2,906
Sumitomo Osaka Cement Co., Ltd. 12,000 36
Sumitomo Realty & Development
Co., Ltd. 44,000 1,094
Sumitomo Trust & Banking 76,000 807
T&D Holdings, Inc. 11,450 910
Taiheiyo Cement Corp. 29,000 109
Taisei Construction 63,000 211
Taisho Pharmaceutical Co. 11,913 234
Taiyo Yuden Co., Ltd. 5,000 66
Taka Shi Maya Co., Ltd. (g) 18,000 217
Takara Holdings, Inc. (g) 7,000 39
Takeda Pharmaceutical Co., Ltd. 53,600 3,461
Takefuji Corp. 1,780 87
TDK Corp. 6,100 477
Teijin, Ltd. 42,400 239
Terumo Corp. 9,500 343
The 77 Bank, Ltd. 14,000 102
The Bank of Fukuoka, Ltd. (g) 31,000 231
The Daimaru, Inc. 17,000 203
THK Co., Ltd. 2,300 61
TIS, Inc. 1,851 40
Tobu Railway Co., Ltd. 32,600 158
Toho Co. 2,200 46
Tohoku Electric Power Co., Ltd. 18,900 397
Tokyo Broadcasting System, Inc. 6,600 139
Tokyo Electric Power Co., Inc. 51,700 1,389
Tokyo Electronics, Ltd. 11,200 712
Tokyo Gas Co., Ltd. 109,600 545
Tokyo Tatemono Co., Ltd. 16,000 162
Tokyu Corp. 47,400 294
Tonengeneral Sekiyu K.K. (g) 17,000 170
Toppan Printing Co., Ltd. 23,600 272
Toray Co. 61,100 513
Toshiba Corp. (g) 166,000 1,073
Tosoh Corp. 27,000 95
Toto, Ltd. (g) 25,600 244
Toyo Seikan Kaisha, Ltd. 9,000 178
Toyota Industries Corp. 5,300 215
Toyota Motor Corp. 154,700 8,179
Trend Micro, Inc. 6,200 203
Uni-Charm Corp. 2,000 111
Uniden Corp. 4,000 42
UNY Co., Ltd. 6,000 86
Ushio, Inc. 3,000 64
USS Co., Ltd. 2,940 195
Wacoal Corp. 3,000 39
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
West Japan Railway Co. 22 $ 92
Yahoo Japan Corp. 948 401
Yakult Honsha Co., Ltd. (g) 5,000 130
Yamada Denki Co., Ltd. 6,100 593
Yamaha Corp. 6,300 122
Yamaha Motor Co., Ltd. 1,000 26
Yamato Transport Co., Ltd. 17,000 251
Yamazaki Baking Co., Ltd. (g) 5,000 45
Yokogawa Electric Corp. 12,000 160
-----------
130,764
-----------
JERSEY (0.0%)
Meinl European Land, Ltd. * 7,576 159
-----------
MEXICO (0.9%)
Alfa, SA 13,000 66
America Movil SA de CV 746,000 1,333
Cemex SA de CV 244,000 689
Coca-Cola Femsa SA de CV 6,000 18
Corporacion GEO SA de CV * 15,000 59
Fomento Economico Mexicano SA
de CV 26,000 228
Grupo Carso SA de CV 30,000 80
Grupo Financiero Banorte SA de CV 51,000 140
Grupo Mexico SA de CV 45,000 145
Grupo Modelo SA de CV 21,000 92
Grupo Televisa SA 88,000 326
Kimberly Clark de Mexico SA de CV 21,000 79
Telefonos de Mexico SA de CV 503,000 592
Urbi, Desarrollos Urbanos, SA de CV * 12,000 31
Wal-Mart de Mexico SA de CV 154,000 475
-----------
4,353
-----------
NETHERLANDS (3.0%)
ABN AMRO Holding NV (g) 83,651 2,315
Aegon NV 85,974 1,459
Akzo NV 10,755 598
ASML Holding NV * 20,394 402
Corio NV 3,575 239
Heineken NV 9,339 439
ING Groep NV 78,752 3,196
Koninklijke DSM NV 5,893 230
Koninklijke KNP NV 65,300 741
Oce NV 4,385 71
Philips Electronics NV 36,887 1,218
QIAGEN NV * 8,202 125
Reed Elsevier NV (g) 17,002 253
Rodamco Cont Eurpope NV 2,933 311
TNT Post Groep NV 17,981 643
Unilever NV 70,046 1,665
Vedior NV 5,687 107
Wereldhave NV 1,458 155
Wolters Kluwer NV CVA 9,213 217
-----------
14,384
-----------
CONTINUED
91
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
NEW ZEALAND (0.0%)
Auckland International Airport, Ltd. 7,148 $ 9
Contact Energy, Ltd. 2,639 12
Fisher & Paykel Appliances Holdings,
Ltd. 1,810 5
Fisher & Paykel Industries, Ltd. 2,095 6
Fletcher Building, Ltd. 2,432 13
Sky City Entertainment Group, Ltd. 2,511 8
Telecom Corp. of New Zealand, Ltd. (g) 12,253 30
The Warehouse Group, Ltd. 1,226 4
-----------
87
-----------
NORWAY (0.5%)
DnB Holding ASA 13,396 170
Norsk Hydro ASA 24,210 688
Norske Skogindustrier AG 7,100 109
Orkla SA 8,000 363
Schibsted ASA (g) 1,250 34
Statoil ASA 22,650 672
Storebrand ASA 1,300 14
Tandberg ASA 5,800 54
Tandberg Television ASA * 3,000 42
Telenor ASA 23,000 294
Tomra Systems ASA 2,135 15
Yara International ASA 8,742 132
-----------
2,587
-----------
PORTUGAL (0.2%)
Banco Commercial 88,339 254
BPI-SGPS SA 2,389 18
Brisa Auto-Estradas (g) 20,326 207
Energias de Portugal SA 12,673 50
Portugal Telecom SA 24,085 298
PT Multimedia-Servicos de
Telecomunicacoes e Multimedia,
SGPS, SA 1,374 16
Sonae, SGPS SA 25,407 40
-----------
883
-----------
RUSSIA (1.3%)
AO VimpelCom ADR * 4,200 202
GMK Norilsk Nickel ADR 3,400 464
Lukoil ADR 22,100 1,918
Mobile TeleSystems, ADR 8,000 256
Oao Gazprom ADR 46,950 1,986
Polyus Gold ADR * 4,700 209
RAO Unified Energy Systems, GDR 3,727 273
Surgutneftegaz ADR (g) 6,600 485
Tatneft ADR 3,000 309
-----------
6,102
-----------
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
SINGAPORE (1.0%)
Ascendas Real Estate Investment Trust 50,000 $ 61
Capitaland, Ltd. 61,000 158
CapitaMall Trust 44,300 62
Chartered Semiconductor Manufacturing,
Ltd. * (g) 71,000 49
City Developments, Ltd. 26,370 150
ComfortDelGro Corp., Ltd. 95,333 94
Cosco Corp., Ltd. 41,000 40
Creative Technology, Ltd. 6,254 34
DBS Group Holdings, Ltd. 53,945 618
Fraser and Neave, Ltd. 100,000 256
Jardine Cycle & Carriage, Ltd. 13,031 88
K-REIT Asia 6,400 6
Keppel Corp., Ltd. 27,000 262
Keppel Land, Ltd. (g) 18,000 45
Neptune Orient Lines, Ltd. 55,000 63
Oversea-Chinese Banking Corp., Ltd. 121,490 489
Parkway Holdings, Ltd. 31,000 50
SembCorp Industries, Ltd. 41,784 90
SembCorp. Marine, Ltd. 28,000 59
Singapore Airlines, Ltd. 28,000 231
Singapore Exchange, Ltd. 38,911 91
Singapore Land, Ltd. 17,000 68
Singapore Post, Ltd. 76,000 52
Singapore Press Holdings, Ltd. 76,743 190
Singapore Technology Engineering, Ltd. 67,760 121
Singapore Telecommunications, Ltd. 372,503 610
STATS ChipPAC, Ltd. * 68,000 39
United Overseas Bank, Ltd. 56,720 561
United Overseas Land, Ltd. 31,376 57
Venture Corp., Ltd. 13,445 91
-----------
4,785
-----------
SPAIN (2.0%)
Abertis Infraestructuras (g) 7,916 187
Acciona SA 802 122
Acerinox SA (g) 6,445 121
Actividades de Construccion y
Servicios SA 5,946 260
Altadis SA 10,809 511
Antena 3 Television SA (g) 1,288 28
Banco Bilbao Vizcaya-Argentari 78,816 1,675
Banco Popular Espanol SA 22,101 332
Banco Santander Central Hispano SA (g) 110,347 1,671
Cintra Concesiones de Infraestructuras
de Transporte SA (g) 7,334 93
Endesa SA 12,113 414
Fomento de Construcciones y
Contratas SA 931 73
Gas Natural SDG SA (g) 16,755 541
Grupo Ferrovial SA (g) 1,326 107
CONTINUED
92
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
SPAIN, CONTINUED
Iberdrola SA 10,338 $ 367
Indra Sistemas SA 2,092 42
Industria de Diseno Textil SA 4,668 203
Repsol SA 18,817 529
Sociedad General De Aguas De
Barcelona SA 2,047 56
Telefonica SA 108,118 1,829
Union Electric Fenosa SA (g) 2,178 89
Vallehermoso SA 2,086 78
-----------
9,328
-----------
SWEDEN (2.1%)
Alfa Laval AB 900 29
Assa Abloy AB, Series B 12,150 200
Atlas Copco AB, A Shares 12,092 301
Atlas Copco AB, B Shares 7,200 171
Billerud 4,050 62
Electrolux AB, Series B 7,900 115
Eniro AB 4,900 56
Ericsson LM, Series B 593,737 1,871
Getinge AB, B Shares 6,400 115
Hennes & Mauritz AB, Series B 12,550 466
Holmen AB 2,100 90
Husqvarna AB, B Shares * 7,900 85
Modern Times Group MTG AB,
B Shares * 1,550 77
Nordea Bank AB 130,222 1,631
Sandvik AB 38,440 400
Scania AB, Series B 4,000 180
Securitas AB, Series B 15,700 293
Shanska AB, Series B 13,117 206
Skandiaviska Enskil 22,520 555
SKF AB, Series B 12,200 173
SSAB Svenskt Stal AB, Series A 7,200 143
Svenska Cellulosa AB, Series B 7,600 319
Svenska Handelsbanken, Series A 36,502 925
Swedish Match AB 19,700 325
Tele2 AB (g) 5,425 53
Telia 53,426 300
Volvo AB, Series A 3,633 195
Volvo AB, Series B 8,410 445
WM-Data AB 9,600 32
-----------
9,813
-----------
SWITZERLAND (5.3%)
Abb, Ltd. 67,709 875
Adecco SA, Registered 1,689 98
Ciba Specialty Chemicals AG 2,570 142
Clariant AG 8,759 120
Compagnie Finaciere Richemont AG 13,296 600
Credit Suisse Group 27,666 1,551
Geberit AG 170 190
Givaudan 268 221
Holcim, Ltd. 7,707 602
CONTINUED
SHARES VALUE
----------- -----------
FOREIGN STOCKS, CONTINUED
SWITZERLAND, CONTINUED
Kudelski SA 1,850 $ 40
Logitech International S.A. * 7,960 162
Lonza Group AG 1,476 100
Nestle 15,523 5,089
Nobel Biocare Holding AG 963 228
Novartis AG, Registered 77,814 4,421
Roche Holdings AG, Genusscheine 23,396 4,165
Schindler Holding AG 2,450 131
Serono SA 174 118
Societe Generale de Surveillance
Holdings SA 132 122
Straumann AG 510 130
Swiss Reinsurance 2,788 201
Swisscom AG 664 219
Syngenta 4,147 596
Synthes, Inc. 2,018 233
The Swatch Group AG, Series B 1,016 181
UBS AG 78,142 4,253
Zurich Financial Services 2,010 451
-----------
25,239
-----------
TURKEY (0.7%)
Akbank TAS 99,593 480
Anadolu Efes Biracilik ve Malt Sanayii AS 2,297 61
Arcelik AS 19,534 121
Dogan Sirketler Grubu Holding AS 42,270 174
Dogan Yayin Holding AS * 26,147 88
Eregli Demir ve Celik Fabrikalari TAS 45,737 234
Ford Otomotiv Sanayi AS 11,885 81
Haci Omer Sabanci Holding AS 71,444 227
Hurriyet Gazetecilik ve Matbaacilik AS 14,856 34
Koc Holding AS * 37,480 130
Migros Turk AS * 15,768 127
Trakya Cam Sanayii AS 6,357 16
Tupras-Turkiye Petrol Rafinerileri AS 14,064 265
Turk Hava Yollari Anonim Ortakligi * 5,160 18
Turk Sise ve Cam Fabrikalari AS * 14,713 46
Turkcell Iletisim Hizmetleri AS 56,386 252
Turkiye Garanti Bankasi AS 123,855 356
Turkiye Is Bankasi 86,742 465
Yapi ve Kredi Bankasi AS * 104,700 165
-----------
3,340
-----------
TOTAL FOREIGN STOCKS 429,006
-----------
PREFERRED STOCKS (0.9%)
BRAZIL (0.7%)
Banco Bradesco SA 17,000 570
Brasil Telecom Participacoes SA 10,895,000 68
Companhia de Bebidas das Americas 771,000 312
Companhia Energetica de Minas Gerais 4,560,000 198
Gerdau SA 16,000 251
Klabin SA 27,000 60
CONTINUED
93
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
PREFERRED STOCKS, CONTINUED
BRAZIL, CONTINUED
Petroleo Brasileiro SA 103,300 $ 2,135
Sadia SA 23,000 65
Votorantim Celulose e Papel SA 4,000 62
-----------
3,721
-----------
GERMANY (0.1%)
Volkswagen AG 5,125 273
-----------
RUSSIA (0.1%)
Surgutneftegaz ADR 3,100 324
-----------
TOTAL PREFERRED STOCKS 4,318
-----------
INVESTMENT COMPANIES (3.5%)
UNITED STATES (3.5%)
DWS Latin America Fund 14,934 796
Excelsior Pacific Asia Fund * 33 -- #
Invesco Gold and Precision Metals Fund * 59 -- #
iShares MSCI Emerging Markets
Index Fund (g) 15,900 1,528
iShares MSCI Germany Index Fund (g) 165,500 3,788
iShares MSCI Hong Kong Index
Fund (g) 561,700 7,724
Matthews China Fund 55,918 1,011
Matthews Pacific Tiger Fund 80,040 1,622
-----------
TOTAL INVESTMENT COMPANIES 16,469
-----------
RIGHTS (0.0%)
GREAT BRITAIN (0.0%)
Resolution PLC, Rights N/P 901 2
-----------
TOTAL RIGHTS 2
-----------
MONEY MARKETS (3.0%)
UNITED STATES (3.0%)
JPMorgan Prime Money Market Fund 14,141,789 14,142
-----------
TOTAL MONEY MARKETS 14,142
-----------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
SHORT TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (6.0%)
Pool of various securities for Fifth
Third Funds $ 28,616 $ 28,616
-----------
TOTAL SHORT TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 28,616
-----------
TOTAL INVESTMENTS (COST $426,676) + - 103.7% 492,553
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.7)% (17,426)
-----------
NET ASSETS - 100.0% $ 475,127
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
94
HIGH YIELD BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS (91.3%)
AES Corp., 8.75%, 5/15/13 $ 1,000 $ 1,070
Allied Waste North America, 7.25%, 750 724
3/15/15
Asbury Automotive Group, 8.00%, 750 732
3/15/14
Atlas Pipeline Partners, 8.13%, 90 91
12/15/15
Atlas Pipeline Partners, 8.13%, 219 221
12/15/15
Autonation, Inc., 7.00%, 4/15/14 (e) 112 111
Basic Energy Services, 7.13%, 4/15/16 (e) 750 699
Beazer Homes USA, 6.88%, 7/15/15 750 668
Bluewater Finance Ltd., 10.25%, 700 712
2/15/12
Bristow Group, Inc., 6.13%, 6/15/13 600 557
Buckeye Technologies, Inc., 8.50%, 750 731
10/1/13
Case Corp., 7.25%, 1/15/16 365 354
Case New Holland, Inc., 9.25%, 750 790
8/1/11
Cenveo Corp., 7.88%, 12/1/13 862 839
Chaparral Steel Co., 10.00%, 7/15/13 750 827
CHC Helicopter Corp., 7.38%, 5/1/14 870 817
Chesapeake Energy Corp., 6.88%, 750 724
1/15/16
Chesapeake Energy Corp., 6.50%, 149 139
8/15/17
Citizens Communications, 6.25%, 564 537
1/15/13
CMS Energy Corp., 6.30%, 2/1/12 800 766
Communications & Power Industries, 750 750
8.00%, 2/1/12 (e)
Consol Energy, Inc., 7.88%, 3/1/12 750 770
Copano Energy LLC, 8.13%, 3/1/16 (e) 171 172
CSC Holdings, Inc., 8.13%, 8/15/09 750 768
Del Monte Corp., 8.63%, 12/15/12 (e) 550 571
Del Monte Corp., 6.75%, 2/15/15 (e) 750 699
Dex Media, Inc., 0.00%, 11/15/13 645 532
Dex Media, Inc., 0.00%, 11/15/13 215 177
Dex Media, Inc., 8.00%, 11/15/13 184 184
Dow Jones CDX High Yield, 8.63%, 2,000 1,971
6/29/11
Dresser-Rand Group, Inc., 7.38%, 850 812
11/1/14
DRS Technologies, Inc., 6.63%, 256 246
2/1/16
Edison Mission Energy, 7.50%, 6/15/13 (e) 249 246
Enterprise Products, 8.38%, 8/1/66 (g) 1,600 1,635
Fisher Scientific International, 6.75%, 750 745
8/15/14
Ford Motor Co., 7.45%, 7/16/31 (g) 800 588
Ford Motor Credit Co., 7.88%, 875 823
6/15/10
Forest Oil Corp., 8.00%, 12/15/11 750 771
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Foundation PA Coal Co., 7.25%, $ 750 $ 728
8/1/14
GCI, Inc., 7.25%, 2/15/14 750 716
General Motors Acceptance Corp., 750 726
6.88%, 9/15/11
General Motors Acceptance Corp., 750 736
8.00%, 11/1/31
Georgia - Pacific Corp., 7.70%, 750 718
6/15/15
Gibraltar Industries, Inc., 8.00%, 750 746
12/1/15 (e)
Glencore Funding LLC, 6.00%, 4/15/14 (e) 750 698
Hanover Equipment Trust, Series B, 750 782
8.75%, 9/1/11
HCA, Inc., 6.50%, 2/15/16 1,500 1,194
Houghton Mifflin Co., 8.25%, 2/1/11 750 758
IKON Office Solutions, 7.75%, 9/15/15 (g) 750 743
Jarden Corp., 9.75%, 5/1/12 750 780
K. Hovnanian Enterprises, 6.25%, 1,000 865
1/15/15
K. Hovnanian Enterprises, 8.63%, 250 244
1/15/17 (g)
KB Home, 7.25%, 6/15/18 1,000 914
M/I Homes, Inc., 6.88%, 4/1/12 500 428
Massey Energy Co., 6.88%, 12/15/13 750 692
Mirant North America LLC, 7.38%, 750 721
12/31/13 (e)
Mylan Laboratories, Inc., 6.38%, 750 724
8/15/15
Nell AF SARL, 8.38%, 8/15/15 (e)(g) 750 728
Novelis, Inc., 8.00%, 2/15/15 (e) 600 580
NRG Energy, Inc., 7.25%, 2/1/14 730 714
Omnicare, Inc., 6.88%, 12/15/15 107 103
Overseas Shipholding Group, 8.75%, 280 297
12/1/13
Owens-Brockway Glass Containers, 750 791
8.75%, 11/15/12
Panamsat Corp., 9.00%, 8/15/14 623 633
Paramount Resources Ltd., 8.50%, 750 773
1/31/13
Pilgrim's Pride Corp., 9.63%, 9/15/11 150 157
Pilgrim's Pride Corp., 9.25%, 11/15/13 1,000 1,003
Polyone Corp., 8.88%, 5/1/12 (g) 750 749
Quebecor Media, 7.75%, 3/15/16 902 886
Qwest Corp., 7.88%, 9/1/11 750 777
Range Resources Corp., 7.38%, 585 589
7/15/13
Range Resources Corp., 7.50%, 250 253
5/15/16
Reliant Energy, Inc., 9.50%, 7/15/13 750 769
Rogers Wireless, Inc., 7.25%, 750 759
12/15/12
Sensata Technologies BV, 8.00%, 714 685
5/1/14 (e)
CONTINUED
95
HIGH YIELD BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Service Corp. International, 8.00%, $ 750 $ 700
6/15/17 (e)
Sierra Pacific Power Co., 6.00%, 320 309
5/15/16
Solo Cup Co., 8.50%, 2/15/14 (g) 750 649
Southern Copper Corp., 6.38%, 500 485
7/27/15
Station Casinos, 6.50%, 2/1/14 750 690
Stena AB, 7.50%, 11/1/13 750 726
Stena AB, 7.00%, 12/1/16 250 233
Stewart Enterprises, 6.25%, 2/15/13 500 446
Sungard Data Systems, Inc., 9.13%, 750 766
8/15/13
Texas Industries, Inc., 7.25%, 705 706
7/15/13
Transcont Gas Pipe Corp., 6.40%, 679 653
4/15/16
Trinity Industries, Inc., 6.50%, 750 728
3/15/14
United Auto Group, Inc., 9.63%, 275 287
3/15/12
United Refining Co., 10.50%, 8/15/12 750 791
United Rentals NA, Inc., 6.50%, 750 709
2/15/12
US Concrete, Inc., 8.38%, 4/1/14 (e) 1,000 990
Videotron LTEE, 6.88%, 1/15/14 750 716
Windstream Corp., 8.13%, 8/1/13 (e) 181 188
Windstream Corp., 8.63%, 8/1/16 (e) 144 150
TOTAL CORPORATE BONDS 60,650
-----------
INVESTMENTS IN AFFILIATES (h) (6.8%)
Fifth Third Institutional Money
Market Fund 4,505,557 4,506
-----------
TOTAL INVESTMENTS IN AFFILIATES 4,506
-----------
SHORT-TERM SECURITIES HELD
AS COLLATERAL FOR SECURITIES
LENDING (7.8%)
Pool of various securities for Fifth
Third Funds 5,202 5,202
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 5,202
-----------
TOTAL INVESTMENTS (COST $72,362)+ - 105.9% 70,358
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.9)% (3,937)
-----------
NET ASSETS - 100.0% $ 66,421
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
COMMERCIAL PAPER (6.9%)
ABN Amro North American Finance, $ 430 $ 429
5.28%, 8/17/06 **(f)
Credit Suisse, 5.33%, 8/21/06 **(f) 2,270 2,263
Dexia Delaware LLC, 5.29%, 8/14/06 **(f) 12,000 11,978
Merrill Lynch & Co., 5.32%, 8/17/06 **(f) 1,095 1,092
Royal Bank of Scotland, 5.27%, 8/14/06 **(f) 2,570 2,565
-----------
TOTAL COMMERCIAL PAPER 18,327
-----------
CORPORATE BONDS (62.1%)
Banc of America Commercial Mortgage, 2,850 2,722
Inc., Series 2005-6, Class AJ, 5.18%,
9/10/47
Bank of Montreal-Chicago, 7.80%, 2,000 2,028
4/1/07
Bear Stearns Adjustable Rate Mortgage 1,337 1,311
Trust, Series 2004-10, Class 12A3,
4.66%, 1/25/35 (d)
Bear Stearns Adjustable Rate Mortgage 3,982 3,949
Trust, Series 2005-12, Class 11A2,
5.42%, 2/25/36 (d)
Bear Stearns Adjustable Rate Mortgage 3,859 3,769
Trust, Series 2005-12, Class 13A1,
5.48%, 2/25/36 (d)
Bear Stearns Commercial Mortgage 1,487 1,510
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32
Bear Stearns Commercial Mortgage 2,000 1,941
Securities, Inc., Series 2004-T14,
Class A4, 5.20%, 1/12/41
Bear Stearns Commercial Mortgage 7,500 7,055
Securities, Series 2004-T16, Class A6,
4.75%, 2/13/46 (d)
Chaseflex Trust, Series 2006-1, Class 1,600 1,602
A2A, 5.94%, 6/25/36 (d)
Cigna CDO Ltd., Series 2000-1X, Class 4,556 4,562
A, 5.64%, 8/28/12 (d) (e)
Comcast Cable, 7.13%, 6/15/13 1,750 1,847
Countrywide Alternative Loan Trust, 628 631
6.50%, 9/25/34 (d)
Countrywide Asset-Backed Certificates, 522 522
Series 2002-BC1, Class M1, 6.81%,
4/25/32 (d)(f)
Cox Communications, Inc., 5.50%, 10/1/15 800 745
Credit-Based Asset Servicing and 3,350 3,259
Securitization, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36
DaimlerChrysler, 8.50%, 1/18/31 600 693
Devon Energy Corp., 7.95%, 4/15/32 700 825
Duke Energy Corp., 6.45%, 10/15/32 850 860
Equity One ABS, Inc., Series 2004-1, 4,000 3,923
Class AF4, 4.15%, 4/25/34 (d)
First Union-Lehman Brothers, 7.00%, 2,750 2,898
4/18/29 (e)
CONTINUED
96
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Fleet/Norstar Group, 8.63%, 1/15/07 $ 1,000 $ 1,013
Gazprom International, 7.20%, 2/1/20 (e) 1,000 1,037
General Electric Capital Corp., 6.75%, 1,055 1,148
3/15/32
General Motors Acceptance Corp., 319 319
Mortgage Corp. Loan Trust, 5.62%,
12/25/20 (d)(f)
General Motors Acceptance Corp., 2,700 2,623
Mortgage Corp. Loan Trust, 5.00%,
10/25/33
General Motors Acceptance Corp., 1,750 1,714
Mortgage Corp. Loan Trust, 4.34%,
11/1/34 (d)
Global Signal Trust, Series 2006-1, 2,550 2,524
Class C, 5.71%, 2/15/36 (d) (e)
Greenwich Capital Commercial Funding 1,000 964
Corp., Series 2002-C1, Class A4, 4.95%,
1/11/35
Greenwich Capital Commercial Funding 2,000 1,948
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36
GS Mortgage Securities Corp. II, Series 4,900 4,794
2004-GG2, Class A3, 4.60%, 8/10/38
Harley-Davidson Motorcycle Trust, 207 202
Series 2004-2, Class B, 2.96%, 2/15/12
Hertz Vehicle Financing LLC, Series 3,000 2,971
2005-2A, Class A6, 5.08%, 11/25/11 (e)
Homebanc Mortgage Trust, Series 2,881 2,890
2004-2, 5.84%, 12/25/34 (d)(f)
Homebanc Mortgage Trust, Series 952 956
2006-1, Class 1A1, 6.17%, 4/25/37 (d)
Household Finance Corp., 6.50%, 170 174
11/15/08
IndyMac Index Mortgage Loan Trust, 4,436 4,459
Series 2005-AR9, 5.45%, 7/25/35 (d)
iStar Financial, Inc., 6.00%, 12/15/10 1,500 1,507
JP Morgan Chase Commercial Mortgage 71 71
Securities Corp., Series 2001-CIBC,
Class A2, 6.00%, 3/15/33
JP Morgan Chase Commercial Mortgage 865 845
Securities Corp., Series 2003-CB6,
Class A2, 5.26%, 7/12/37
JP Morgan Mortgage Trust, Series 1,083 1,056
2005-A1, Class 2A1, 4.84%, 2/25/35 (d)
JP Morgan Mortgage Trust, Series 3,000 2,898
2005-A2, Class 3A2, 4.93%, 4/25/35
JP Morgan Mortgage Trust, Series 3,966 3,868
2005-A2, Class 7CB1, 4.90%, 4/25/35 (d)
JP Morgan Mortgage Trust, Series 2,954 2,922
2005-A3, Class 7CA1, 5.17%, 6/25/35
JP Morgan Mortgage Trust, Series 3,770 3,714
2005-ALT1, Class 4A1, 5.65%, 10/25/35 (d)
JP Morgan Mortgage Trust, Series 3,742 3,685
2006-A2, Class 3A2, 5.69%, 4/25/36 (d)
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Kroger Co., 6.20%, 6/15/12 $ 500 $ 504
LB-UBS Commercial Mortgage Trust, 330 319
Series 2005-C3, 4.55%, 7/15/30
Lehman Brothers Holdings, 8.25%, 170 174
6/15/07
Merrill Lynch & Co., 4.25%, 2/8/10 1,000 957
Morgan Stanley Capital I, 5.11%, 3,200 3,078
6/15/40
Morgan Stanley Dean Witter Capital I, 2,590 2,477
4.74%, 11/13/36
Morgan Stanley Mortgage Loan Trust, 2,268 2,190
5.00%, 8/25/19
Motorola, Inc., 6.50%, 11/15/28 (g) 805 814
National City Bank, 7.25%, 7/15/10 2,000 2,123
National Rural Utilities, 7.25%, 3/1/12 125 134
Navistar Financial Corp. Owner Trust, 2,981 2,983
5.57%, 4/15/08 (d)(f)
Navistar Financial Corp. Owner Trust, 1,101 1,059
Series 2004-A, Class B, 2.46%, 3/15/11
NCNB Corp., 10.20%, 7/15/15 2,500 3,234
Norfolk Southern Corp., 5.59%, 130 122
5/17/25
Oncor Electric Delivery, 7.00%, 5/1/32 480 506
Pemex Master Trust, 6.13%, 8/15/08 825 827
Republic New York Corp., 7.00%, 2,000 2,105
3/22/11
Residential Accredit Loans, Inc., 5.66%, 1,699 1,699
3/25/34 (d)(f)
Residential Accredit Loans, Inc., Series 4,051 4,031
2005-QA12, Class CB1, 5.77%, 12/25/35 (d)
Residential Asset Mortgage Products, 3,305 3,218
Inc., Series 2003-RZ5, Class A7, 4.97%,
9/25/33 (d)
Residential Asset Securities Corp., 133 133
5.63%, 3/25/34 (d)(f)
SACO I Trust, Series 2004-2, Class A3, 1,804 1,805
5.86%, 10/25/34 (d)(f)
Science Applications International Co., 2,105 1,797
5.50%, 7/1/33
SLM Corp., 5.00%, 4/15/15 175 164
Structured Asset Securities Corp., 1,245 1,196
5.15%, 12/25/34 (d)
Suntrust Alternative Loan Trust, Series 1,396 1,225
2005-1F, Class B3, 6.07%, 12/25/35 (d)
Swiss Bank Corp. - New York, 7.38%, 2,000 2,230
7/15/15
Thornburg Mortgage Securities Trust, 4,275 4,314
Series 2004-2, Class A3,
5.60%, 6/25/44 (d)(f)
Time Warner Entertainment, 8.38%, 460 519
7/15/33
Trans-Canada Pipeline, 5.60%, 3/31/34 750 698
Travelers Property Casualty Corp., 85 97
7.75%, 4/15/26
CONTINUED
97
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Truck Retail Installment Paper Corp., $ 6,950 $ 6,969
5.64%, 12/15/16 (d) (e) (f)
UBS Preferred Funding Trust I, 8.62%, 925 1,018
10/29/49 (d)
US Bank NA, 6.30%, 2/4/14 345 358
Vodafone Group PLC, 5.75%, 3/15/16 775 748
Washington Mutual, Series 2003-AR9, 5,862 5,695
Class 1A6, 4.05%, 9/25/33 (d)
Washington Mutual, Series 2004-AR3, 1,677 1,635
Class A-2, 4.24%, 6/25/34
Wells Fargo Mortgage Backed Securities 2,981 2,893
Trust, 5.14%, 5/25/35 (d)
Wells Fargo Mortgage Backed Securities 1,550 1,471
Trust, Series 2003-N, 4.75%, 12/25/33 (d)
YUM! Brands Inc., 7.70%, 7/1/12 1,250 1,357
-----------
TOTAL CORPORATE BONDS 165,830
-----------
FOREIGN BONDS (0.8%)
France Telecom, 8.75%, 3/1/31 650 802
United Mexican States, 4.63%, 10/8/08 1,460 1,431
-----------
TOTAL FOREIGN BONDS 2,233
-----------
U.S. GOVERNMENT AGENCIES (44.0%)
FANNIE MAE (25.5%)
6.05%, 12/1/08 2,834 2,850
6.00%, 5/1/17 218 220
6.50%, 6/1/17 309 313
6.50%, 8/1/17 218 221
5.50%, 1/1/18 15 14
5.50%, 2/1/18 8 8
4.50%, 5/1/18 7,200 6,877
6.00%, 5/1/18 1,155 1,166
5.50%, 2/1/25 1,485 1,458
5.00%, 5/1/25 2,389 2,288
7.50%, 6/1/28 236 245
6.50%, 8/1/28 210 214
6.50%, 6/1/29 191 194
6.50%, 4/1/32 426 432
6.50%, 6/1/32 880 894
7.00%, 6/1/32 261 269
6.50%, 7/1/32 694 706
6.50%, 7/1/32 548 557
7.50%, 12/1/32 211 219
6.00%, 1/1/33 414 413
6.50%, 3/1/33 318 322
5.00%, 5/1/33 16,000 15,142
5.50%, 5/1/33 11,000 10,682
6.00%, 8/25/33 (d) 2,640 2,579
5.50%, 5/25/34 3,150 2,886
7.00%, 9/1/34 224 230
5.50%, 6/1/35 940 914
6.00%, 7/1/35 4,959 4,929
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
U.S. GOVERNMENT
AGENCIES, CONTINUED
FANNIE MAE, CONTINUED
6.00%, 9/1/35 $ 2,738 $ 2,723
5.00%, 11/1/35 4,057 3,841
6.00%, 1/1/36 4,533 4,508
-----------
68,314
-----------
FEDERAL HOME LOAN BANK (1.5%)
4.06%, 8/25/09 3,383 3,271
4.00%, 2/25/10 681 667
-----------
3,938
-----------
FREDDIE MAC (12.0%)
4.50%, 8/15/16 3,000 2,867
4.00%, 1/15/17 7,500 6,986
5.00%, 2/15/25 3,245 2,968
6.50%, 1/1/29 1,705 1,735
7.00%, 1/1/32 140 145
6.50%, 7/1/32 295 300
7.00%, 8/1/32 581 597
6.50%, 9/1/32 155 158
5.50%, 2/1/33 12,900 12,532
6.00%, 9/1/33 627 624
6.50%, 5/15/34 (d) 1,277 1,213
4.50%, 6/1/34 947 873
4.50%, 9/1/34 1,182 1,089
-----------
32,087
-----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (5.0%)
5.00%, 7/1/33 4,000 3,819
5.50%, 10/1/33 5,000 4,895
0.80%, 5/16/46 (d) 25,000 1,469
3.40%, 5/16/46 (d) 2,500 1,563
1.06%, 12/16/47 (d) 25,000 1,500
-----------
13,246
-----------
TOTAL U.S. GOVERNMENT AGENCIES 117,585
-----------
U.S. TREASURY OBLIGATIONS (0.6%)
U.S. TREASURY BONDS (0.4%)
5.00%, 11/15/27 ** 2,900 975
-----------
U.S. TREASURY NOTES (0.2%)
5.45%, 5/15/17 ** 1,080 625
-----------
TOTAL U.S. TREASURY OBLIGATIONS 1,600
-----------
INVESTMENTS IN AFFILIATES (h) (3.0%)
Fifth Third Institutional
Money Market Fund 7,932,886 7,933
-----------
TOTAL INVESTMENTS IN AFFILIATES 7,933
-----------
CONTINUED
98
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
SHORT-TERM SECURITIES
HELD AS COLLATERAL
FOR SECURITIES LENDING (0.3%)
Pool of various securities for Fifth
Third Funds $ 745 $ 745
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 745
-----------
TOTAL INVESTMENTS (COST $318,231) + - 117.7% 314,253
LIABILITIES IN EXCESS OF OTHER ASSETS - (17.7)% (47,221)
-----------
NET ASSETS - 100.0% $ 267,032
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS (84.6%)
ABN Amro NA Holding Cap, 6.52%, $ 2,997 $ 3,053
11/8/12 (d) (e)
Ace Securities Corp., 6.00%, 9/25/35 (d) 3,000 3,024
Alabama Power Cap, 5.50%, 10/1/42 (d) 874 864
Ameriprise Financial, Inc., 5.65%,
11/15/15 1,480 1,445
Arizona Public Services, 6.88%,
8/1/36 5,000 4,992
Associated Bank, NA, 5.36%, 6/2/08 (d) 5,000 5,008
AT&T Broadband Corp., 8.38%,
3/15/13 825 924
Bank of America Corp., 9.38%,
9/15/09 5,000 5,558
BankAmerica Capital, 8.00%,
12/15/26 2,000 2,093
Bear Stearns Adjustable Rate
Mortgage Trust, 4.91%, 7/25/34 (d) 3,843 3,685
Bear Stearns Alternative-A Trust,
Series 2005-9, 5.85%, 11/25/35 2,026 2,037
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32 1,268 1,287
Chaseflex Trust, Series 2005-2, 5.96%,
6/25/35 5,387 5,237
Chaseflex Trust, Series 2006-1,
Class A4, 6.30%, 6/25/36 (d) 7,344 7,296
Chaseflex Trust, Series 2006-1,
Class A6, 6.29%, 6/25/36 (d) 5,265 5,272
CIT Group, Inc., 5.13%, 9/30/14 2,000 1,896
Citigroup Commercial Mortgage Trust,
Series 2005-EMG, 4.38%, 9/20/51 (e) 5,000 4,763
Commerce Group, Inc., 5.95%,
12/9/13 (g) 1,000 980
Commercial Mortgage Acceptance
Corp., Series 1998-C2, Class F,
5.44%, 9/15/30 (d) 3,500 3,435
Commercial Mortgage Asset Trust,
Series 1999-C1, Class B, 7.23%, 1/17/32 (d) 1,500 1,634
Countrywide Alternative Loan Trust,
5.75%, 5/25/26 (d) 2,376 2,368
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1, 4.25%,
3/25/34 4,117 4,017
Countrywide Alternative Loan Trust,
Series 2005-10CB, Class 1A2,
5.50%, 5/25/35 (d) 1,895 1,897
Countrywide Alternative Loan Trust,
Series 2005-10CB, Class 1A6,
5.50%, 5/25/35 3,710 3,636
Countrywide Alternative Loan Trust,
Series 2005-7CB, Class M,
5.50%, 4/25/35 2,475 2,352
CONTINUED
99
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Countrywide Home Loan, 4.00%,
3/22/11 (g) $ 2,325 $ 2,158
Countrywide Home Loans, 5.38%,
2/27/08 (d) 1,000 1,000
Cox Communications, Inc., 7.13%,
10/1/12 1,550 1,614
Credit Suisse First Boston Mortgage
Securities Corp., Series 2002-CKN2,
6.38%, 4/15/37 1,000 1,033
Credit Suisse First Boston, Inc., 5.13%,
8/15/15 1,910 1,812
Credit-Based Asset Servicing and
Securitization, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36 3,025 2,943
Credit-Based Asset Servicing and
Securitization, Series 2006-CB2,
Class AF2, 5.50%, 12/25/36 (d) 2,400 2,388
Credit-Based Asset Servicing and
Securitizing, 5.43%, 11/25/36 (d) 2,475 2,405
Crown Castle Towers LLC,
Series 2005-1A, 4.64%, 6/15/35 (e) 4,000 3,875
CS First Boston Mortgage Securities
Corp., Series 2003-CK2, Class A4,
4.80%, 3/15/36 4,750 4,537
Deutsche Alt-A Securities, Inc.
Mortgage Loan Trust, Series 2006-AB3,
Class A3, 6.51%, 7/28/36 2,445 2,475
Deutsche Alternative-A Securities
Inc., Mortgage Loan Trust, 5.05%,
9/25/35 1,540 1,521
Deutsche Mortgage Securities Inc.,
Series 2005-1, 5.75%, 2/25/35 4,891 4,739
Deutsche Mortgage Securities, Inc.,
5.03%, 6/26/35 (d) 2,131 2,121
Dover Corp., 4.88%, 10/15/15 1,000 935
Duke Capital LLC, 5.50%, 3/1/14 1,825 1,754
Duke Realty Corp., 5.70%, 12/22/06 (d) 2,880 2,882
First Horizon ABS Trust, Series
2006-HE1, Class A, 5.48%, 10/25/34 (d) 2,270 2,270
First Horizon Mortgage Pass Through
Trust, Series 2006-AR1, Class 3A1,
6.03%, 4/25/36 (d) 4,176 4,165
First Tennessee Bank, Series BKNT,
5.65%, 4/1/16 2,000 1,951
First Union-Lehman Brothers, 7.00%,
4/18/29 (e) 3,220 3,393
Fleet Financial Group, 7.38%,
12/1/09 5,000 5,291
Gazprom International, 7.20%, 2/1/20 (e) 2,000 2,075
GE Global Insurance Holding, 6.45%,
3/1/19 1,000 1,020
Global Signal Trust, Series 2006-1,
Class D, 6.05%, 2/15/36 (e) 3,000 2,962
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Goldman Sachs Group, Inc., 5.00%,
10/1/14 (g) $ 2,500 $ 2,355
Goldman Sachs Group, Inc.,
Series MTN, 5.02%, 3/2/10 (d) 5,000 5,008
Green Tree Financial Corp.,
Series 1998-6, Class A6, 6.27%, 6/1/30 224 224
GS Mortgage Securities Corp. II,
Series 2004-C1, Class B, 4.46%,
10/10/28 (d) 2,600 2,481
GS Mortgage Securities Corp. II,
Series 2004-C1, Class C, 4.52%,
10/10/28 (d) 3,888 3,714
GSR Mortgage Loan Trust,
Series 2005-AR6, Class 3A1,
4.56%, 9/25/35 (d) 2,253 2,201
Hibernia Corp., 5.35%, 5/1/14 2,845 2,712
Homebanc Mortgage Trust,
Series 2006-1, Class 2A1,
6.11%, 4/25/37 (d) 4,659 4,683
HSBC Bank USA, 4.63%, 4/1/14 2,000 1,855
HSBC Finance Corp., 6.38%, 10/15/11 (g) 2,000 2,063
Indiana Michigan Power, 5.05%,
11/15/14 2,035 1,905
Indymac Home Equity Loan,
Series 2002-B, Class B1, 8.22%,
10/25/33 (d) 530 531
International Lease Finance Corp.,
5.88%, 5/1/13 2,500 2,512
Jefferies Group, Inc., 5.50%, 3/15/16 1,000 945
JP Morgan Alternative Loan Trust,
Series 2005-S1, Class 1A2, 5.50%,
12/25/35 2,381 2,349
JP Morgan Alternative Loan Trust,
Series 2006-A4, Class A7,
6.30%, 7/26/36 (d) 5,000 5,011
JP Morgan Alternative Loan Trust,
Series 2006-A4, Class A9,
6.30%, 7/1/36 5,020 5,039
JP Morgan Alternative Loan Trust,
Series 2006-S1, Class 1A18,
6.00%, 3/25/36 (d) 4,661 4,623
JP Morgan Alternative Loan Trust,
Series 2006-S2, Class A3, 5.92%,
5/25/36 (d) 4,730 4,667
JP Morgan Alternative Loan Trust,
Series 2006-S2, Class A6, 6.05%,
5/25/36 (d) 4,975 4,961
JP Morgan Alternative Loan Trust,
Series 2006-S3, Class A3A, 6.00%,
7/1/36 4,529 4,536
JP Morgan Alternative Loan Trust,
Series 2006-S3, Class A7, 6.24%,
8/25/36 5,245 5,251
CONTINUED
100
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
JP Morgan Chase & Co., 5.13%,
9/15/14 $ 1,755 $ 1,671
JP Morgan Chase Commercial
Mortgage Securities Corp.,
Series 2003-CB6, Class A2,
5.26%, 7/12/37 4,460 4,358
JP Morgan Chase Commercial
Mortgage Securities Corp.,
Series 2003-LN1, Class A2,
4.92%, 10/15/37 6,680 6,385
JP Morgan Chase Commercial
Mortgage Securities Corp.,
Series 2006-LDP7, Class AJ,
5.88%, 4/15/45 (d) 4,785 4,835
JP Morgan Mortgage Trust,
Series 2003-A1, Class 4A4, 4.71%,
10/25/33 (d) 5,000 4,746
JP Morgan Mortgage Trust,
Series 2005-A1, Class 3A4,
5.05%, 2/25/35 6,218 6,030
JP Morgan Mortgage Trust,
Series 2005-A2, Class 5A1,
4.36%, 4/25/35 (d) 4,211 4,025
JP Morgan Mortgage Trust,
Series 2005-A3, 4.52%, 6/25/35 4,511 4,358
JP Morgan Mortgage Trust,
Series 2005-A6, Class 1B1,
5.18%, 9/25/35 (d) 2,639 2,540
JP Morgan Mortgage Trust,
Series 2005-ALT1, Class 4A1,
5.65%, 10/25/35 (d) 2,218 2,185
JP Morgan Mortgage Trust,
Series 2005-S1, Class B1,
6.26%, 1/25/35 2,629 2,595
JP Morgan Mortgage Trust,
Series 2006-A1, Class 3A2,
5.64%, 2/25/36 2,290 2,261
JP Morgan Mortgage Trust,
Series 2006-A2, Class 3A2,
5.69%, 4/25/36 (d) 4,924 4,849
JP Morgan Mortgage Trust,
Series 2006-A4, Class 2A2,
5.83%, 6/25/36 (d) 7,386 7,351
JP Morgan Mortgage Trust,
Series 2006-A4, Class 3A4,
6.00%, 6/25/36 (d) 8,533 8,532
Key Bank NA, 4.95%, 9/15/15 2,365 2,206
Keycorp., 5.42%, 5/26/09 (d) 2,500 2,499
Kimco Realty Corp., 4.82%, 6/1/14 1,215 1,125
LB-UBS Commercial Mortgage Trust,
Series 2003-C8, Class A4, 5.12%,
11/15/32 2,924 2,844
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Manufacturers & Traders Trust Co.,
3.85%, 4/1/13 (d) $ 1,075 $ 1,047
Marlin Leasing Receivables LLC,
4.75%, 8/15/12 (e) 3,000 2,983
MassMutual Global Funding II, 3.80%,
4/15/09 (e) 1,390 1,333
MBNA Master Credit Card Trust,
7.80%, 10/15/12 3,000 3,266
Merrill Lynch Mortgage Trust,
Series 2005-LC1, Class AM,
5.26%, 1/12/44 2,525 2,451
Merrill Lynch Mortgage Trust,
Series 2006-C1, Class ASB,
5.84%, 5/12/39 (d) 2,000 2,008
Morgan Stanley, 4.75%, 4/1/14 3,500 3,251
Morgan Stanley Capital I,
Series 2006-HQ8, Class AJ,
5.47%, 3/12/44 (d) 2,529 2,489
Morgan Stanley Capital,
Series 2005-HQ7, Class AM,
5.21%, 11/14/42 2,500 2,420
National City Bank, 4.25%, 1/29/10 2,375 2,280
Nelnet, Inc., 5.13%, 6/1/10 3,100 2,993
Nextel Communications, 7.38%,
8/1/15 1,285 1,316
NiSource Finance Corp., 5.76%,
11/23/09 (d) 2,795 2,800
Nomura Asset Acceptance Corp.,
Series 2004-AR4, Class 1A2,
4.93%, 12/25/34 1,470 1,456
Nomura Asset Acceptance Corp.,
Series 2005-AR1, Class 1A2,
5.40%, 2/25/35 2,557 2,527
Nomura Asset Acceptance Corp.,
Series 2005-AR2, Class 2A2,
5.57%, 5/25/35 (d) 1,942 1,957
Nomura Asset Acceptance Corp.,
Series 2005-AR3, 5.66%, 7/25/35 2,748 2,679
Nomura Asset Acceptance Corp.,
Series 2005-AR5, Class 2A2,
5.65%, 10/25/35 (d) 1,844 1,828
Nomura Asset Acceptance
Corporation, Series 2006-AF1,
Class 3A2, 6.64%, 6/25/36 (d) 3,274 3,329
Nomura Asset Securities Corp.,
Series 1998-D6, Class A2,
6.78%, 3/15/30 (d) 1,000 1,084
Nomura Asset Securities Corp.,
Series 1998-D6, Class A4,
7.62%, 3/15/30 (d) 1,600 1,782
Pemex Project Funding Master Trust,
7.38%, 12/15/14 2,000 2,130
Popular ABS Mortgage Pass-Through
Trust, 4.98%, 9/15/35 1,510 1,485
CONTINUED
101
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Popular NA, Inc., 6.13%, 10/15/06 $ 3,150 $ 3,153
PPG Industries, Inc., 6.50%, 11/1/07 30 30
Preferred Term XXII, 6.57%, 9/22/36 (d) (e) 1,500 1,503
Premcor Refining Group, 9.25%,
2/1/10 2,000 2,126
Prestige Auto Receivables Trust,
Series 2006-1A, Class A2, 5.25%,
6/17/13 (d) (e) 2,000 1,995
PSEG Power, 5.00%, 4/1/14 1,500 1,401
Ras Laffan Liquid & Natural Gas,
5.30%, 9/30/20 (e) 2,700 2,549
Regions Financial Corp., 7.00%,
3/1/11 1,275 1,348
Renaissance Home Equity Loan Trust,
Series 2005-2, 4.93%, 8/25/35 (d) 2,500 2,412
Renaissance Home Equity Loan Trust,
Series 2006-1, Class AF4, 6.01%,
5/25/36 1,575 1,566
Residential Funding Mortgage
Securities, Series 2006-HI3, Class A4,
6.31%, 5/25/36 (d) 1,500 1,510
Residential Funding Mortgage
Securities, Series 2006-HSA1, Class A4,
5.49%, 2/25/36 1,500 1,468
SACO I Trust, 5.69%, 7/25/35 (d) 2,485 2,486
Salomon Brothers Mortgage Securities
VII, Series 2002-KEY2, Class A3,
4.87%, 3/18/36 2,270 2,193
Salomon Brothers Mortgage Securities,
Series 2002-KEY2, Class C, 5.05%,
3/18/36 1,417 1,377
Salomon Smith Barney, 7.13%,
10/1/06 5,000 5,014
Sempra Energy, 5.66%, 5/21/08 (d) 5,000 5,004
SLM Corp., Series MTNA, 5.00%,
6/15/18 1,000 890
Southern Copper Corp., 6.38%, 7/27/15 1,000 970
Sovrisc BV, 5.25%, 4/30/11 (e) 2,000 1,995
SunTrust Alternative Loan Trust,
Series 2005-1F, Class B3,
6.07%, 12/25/35 (d) 1,603 1,406
TCI Communications, Inc., 7.88%,
8/1/13 860 934
U.S. Bank, N.A., 3.75%, 2/6/09 2,500 2,403
UPFC Auto Receivables Trust,
Series 2004-A, Class A3, 3.27%,
9/15/10 1,648 1,626
Vanderbilt Acquisition Loan Trust,
Series 2002-1, Class A4, 6.57%, 5/7/27 2,725 2,802
Vectren Utility Holdings, 5.45%,
12/1/15 1,000 948
Wells Fargo Mortgage Backed
Securities Trust, Series 2003-N,
4.75%, 12/25/33 (d) 2,545 2,415
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
WMALT Mortgage Pass-through
Certificates, Series 2005-1, Class 1A2,
5.50%, 3/25/35 (d) $ 2,093 $ 2,051
WPS Resources Corp., 7.00%, 11/1/09 1,540 1,600
-----------
TOTAL CORPORATE BONDS 395,162
-----------
FOREIGN BONDS (0.2%)
Korea Electric Power, 4.25%, 9/12/07 (e) 1,000 985
-----------
TOTAL FOREIGN BONDS 985
-----------
U.S. GOVERNMENT AGENCIES (12.4%)
FANNIE MAE (1.1%)
6.25%, 1/25/08 431 432
5.65%, 4/10/13 4,675 4,648
5.21%, 8/1/34 159 156
-----------
5,236
-----------
FEDERAL HOME LOAN BANK (2.8%)
4.50%, 8/8/08 5,000 4,929
5.00%, 9/1/10 3,240 3,214
5.13%, 11/1/10 2,855 2,824
5.63%, 12/20/10 2,200 2,197
-----------
13,164
-----------
FREDDIE MAC (5.9%)
5.73%, 12/28/09 5,000 5,014
5.15%, 1/24/11 1,956 1,933
6.25%, 3/5/12 (g) 8,500 8,530
4.75%, 6/28/12 (g) 5,000 4,862
5.00%, 8/15/12 2,275 2,240
4.65%, 10/10/13 1,300 1,232
5.74%, 7/15/23 2,455 2,465
6.50%, 5/15/34 (d) 1,277 1,213
-----------
27,489
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (2.6%)
9.50%, 12/15/09 1,064 1,100
5.43%, 4/16/41 (j) 2,095 2,012
0.97%, 6/17/45 (d) 10,721 602
0.53%, 3/16/46 (d) 14,242 613
0.80%, 5/16/46 (d) 20,000 1,175
0.73%, 12/16/47 (d) 23,219 1,124
0.92%, 12/16/47 (d) 35,289 1,863
1.06%, 12/16/47 (d) 55,000 3,301
-----------
11,790
-----------
TOTAL U.S. GOVERNMENT AGENCIES 57,679
-----------
CONTINUED
102
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
INVESTMENTS IN AFFILIATES (h) (3.6%)
Fifth Third Institutional Money
Market Fund 16,949,146 $ 16,949
-----------
TOTAL INVESTMENTS IN AFFILIATES 16,949
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (4.6%)
Pool of various securities for Fifth
Third Funds $ 21,265 21,265
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 21,265
-----------
TOTAL INVESTMENTS (COST $498,078)+ - 105.4% 492,040
LIABILITIES IN EXCESS OF OTHER
ASSETS - (5.4)% (25,017)
-----------
NET ASSETS - 100.0% $ 467,023
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS (57.9%)
Alabama Power Co., 2.80%, 12/1/06 $ 1,190 $ 1,180
Australian Gas Light Co., 6.40%,
4/15/08 (e) 3,210 3,240
Bank of America Commercial
Mortgage, Inc., Series 2004-1,
Class A1, 3.16%, 11/10/39 2,828 2,719
Bank of America Mortgage Securities,
4.15%, 7/25/34 (d) 3,539 3,429
Bank One Issuance Trust,
Series 2004-A1, Class A1,
3.45%, 10/17/11 810 775
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2000-WF2,
Class A1, 7.11%, 10/15/32 1,716 1,742
Bear Stearns Cos., Inc.,
Series 2003-AC7, Class A2,
5.25%, 1/25/34 1,519 1,479
Capital One Auto Finance Trust,
3.44%, 6/15/09 2,314 2,295
Centerpoint Energy, 6.50%, 2/1/08 1,600 1,618
Chase Mortgage Finance Corp.,
Series 2005-A1, Class 2A2,
5.25%, 12/25/35 (d) 3,487 3,445
CNH Equipment Trust, 4.02%,
4/15/09 2,060 2,036
Comcast Cable, 7.63%, 4/15/08 1,550 1,598
Cooper Cameron Corp., 2.65%,
4/15/07 780 764
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1,
4.25%, 3/25/34 2,346 2,289
Countrywide Alternative Loan Trust,
Series 2005-14, Class 1A1,
3.30%, 5/25/35 2,844 2,774
Countrywide Home Loans, 5.03%,
4/20/35 (d) 2,585 2,560
DaimlerChrysler NA Holding, 4.75%,
1/15/08 1,500 1,478
DLJ Commercial Mortgage Corp.,
Series 1999-CG1, Class A1A, 6.08%,
3/10/32 723 725
First Boston Mortgage Securities Corp.,
Series 2001-CK6, Class A2, 6.10%,
8/15/36 2,269 2,287
General Motors Acceptance Corp.,
Commercial Mortgage Securities, Inc.,
Series 1996-C1, 7.86%, 11/15/06 (e) 800 799
General Motors Acceptance Corp.,
Mortgage Corp. Loan Trust,
Series 2005-HE2, 4.62%, 11/25/35 4,000 3,944
General Motors Acceptance Corp.,
Mortgage Corporation Loan Trust,
4.24%, 10/25/33 4,170 4,055
CONTINUED
103
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
GMAC Mortgage Corp. Loan Trust,
Series 2006-HE2, Class 2, 6.18%,
5/25/36 (d) $ 3,000 $ 3,013
Goldman Sachs Group, Inc., 6.65%,
5/15/09 3,000 3,094
Green Tree Financial Corp.,
Series 1998-6, Class A6, 6.27%,
6/1/30 321 321
Greenwich Capital Commercial
Funding Corp., Series 2004-GG1,
Class A2, 3.84%, 6/10/36 447 442
Harborview Mortgage Loan Trust,
Series 2004-5, Class 2A6, 3.96%,
6/19/34 (d) 5,730 5,565
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%, 2/15/12 1,203 1,176
Hertz Vehicle Financing LLC,
Series 2005-2A, Class A2, 4.93%,
2/25/10 (e) 3,375 3,348
Homebanc Mortgage Trust,
Series 2004-2, 5.84%, 12/25/34 (d) 2,322 2,329
Homebanc Mortgage Trust,
Series 2006-1, Class 1A1, 6.17%,
4/25/37 (d) 3,330 3,346
Household Automotive Trust,
Series 2002-3, Class A4A,
3.44%, 5/18/09 2,069 2,042
HSBC Finance Corp., 4.63%, 1/15/08 3,500 3,462
Hyundai Auto Receivables Trust,
Series 2005-A, 4.18%, 2/15/12 3,000 2,907
IBM, Corp., 3.80%, 2/1/08 3,030 2,959
Impac Commercial Holdings, Inc.,
Series 1998-C1, Class D, 7.58%,
8/20/30 3,500 3,603
International Lease Finance Corp.,
4.75%, 7/1/09 3,000 2,936
iStar Financial, Inc., 4.88%, 1/15/09 1,600 1,566
J.P. Morgan Alternative Loan Trust,
Series 2006-A3, Class 1A2,
5.42%, 7/25/36 (d) 2,937 2,936
J.P. Morgan Alternative Loan Trust,
Series 2006-S2, Class A2, 5.81%,
5/25/36 (d) 2,075 2,067
John Deere Owner Trust,
Series 2004-A, Class A3,
2.32%, 12/17/07 854 847
JP Morgan Mortgage Trust,
Series 2005-A1, 4.90%, 2/25/35 2,911 2,840
JP Morgan Mortgage Trust,
Series 2005-A2, Class 5A1,
4.36%, 4/25/35 (d) 2,558 2,445
JP Morgan Mortgage Trust,
Series 2005-A3, Class 7CA1,
5.17%, 6/25/35 4,734 4,683
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS, CONTINUED
Kraft Foods, Inc., 5.25%, 6/1/07 $ 1,930 $ 1,921
LB-UBS Commercial Mortgage Trust,
Series 2002-C2, Class A1, 3.83%,
6/15/26 1,019 1,014
Long Beach Auto Receivables Trust,
4.40%, 5/15/10 2,875 2,838
Marlin Leasing Receivables LLC,
4.49%, 1/15/08 (e) 2,748 2,723
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A, 4.53%,
12/25/32 497 493
Morgan Stanley Dean Witter, 8.33%,
1/15/07 3,190 3,229
Morgan Stanley Dean Witter Capital I,
3.48%, 9/15/37 1,081 1,066
Morgan Stanley Dean Witter Capital I,
3.92%, 4/14/40 5,680 5,532
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class A4, 3.25%,
10/15/10 3,990 3,890
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class B, 3.79%,
10/15/10 891 872
Nissan Auto Lease Trust, 3.18%,
6/15/10 830 817
Pemex Finance, Ltd., 8.45%, 2/15/07 400 404
Pemex Finance, Ltd., 9.69%, 8/15/09 527 556
Protective Life US Funding, 3.70%,
11/24/08 1,590 1,530
RAAC, Series 2005-SP1, 5.25%,
9/25/34 2,696 2,635
Simon Property Group LP, 7.13%,
9/20/07 2,400 2,422
SLM Corp., 5.63%, 4/10/07 4,000 3,998
SVO VOI Mortgage, Corp.,
Series 2005-AA, Class A,
5.25%, 2/20/21 (e) 1,515 1,494
UnitedHealth Group, Inc., 5.20%,
1/17/07 3,390 3,384
Verizon Communications, 7.51%,
4/1/09 3,300 3,439
Washington Mutual, Inc., 4.82%,
10/25/32 624 619
Washington Mutual, Inc.,
Series 2003-AR10, Class A4,
4.08%, 10/25/33 3,621 3,579
Wells Fargo Mortgage Backed
Securities, Series 2005-AR10,
Class 2A14, 4.11%, 6/25/35 (d) 3,500 3,384
-----------
TOTAL CORPORATE BONDS 156,997
-----------
CONTINUED
104
SHORT TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
FOREIGN BONDS (0.5%)
Korea Electric Power, 4.25%, 9/12/07 (e) $ 810 $ 799
Telecom Italia Capital, 4.00%,
11/15/08 650 626
-----------
TOTAL FOREIGN BONDS 1,425
-----------
MUNICIPAL BONDS (0.3%)
OHIO (0.3%)
State Economic Development
Revenue, Ohio Enterprise, Series 3,
4.05%, 3/1/11 (e) 950 901
-----------
TOTAL MUNICIPAL BONDS 901
-----------
U.S. GOVERNMENT AGENCIES (29.4%)
FANNIE MAE (4.5%)
3.13%, 12/15/07 1,190 1,156
4.65%, 12/25/12 3,272 3,157
4.71%, 4/1/33 (d) 2,529 2,485
5.21%, 9/1/34 3,018 2,968
5.01%, 4/1/35 2,589 2,546
-----------
12,312
-----------
FEDERAL HOME LOAN BANK (7.8%)
3.75%, 8/15/07 3,670 3,610
4.00%, 5/15/08 5,500 5,378
3.88%, 8/22/08 (g) 5,000 4,868
4.00%, 10/27/08 4,220 4,111
4.75%, 10/25/10 3,354 3,283
-----------
21,250
-----------
FREDDIE MAC (10.1%)
5.00%, 2/1/07 348 345
5.75%, 4/15/08 (g) 6,000 6,044
3.63%, 9/15/08 5,000 4,840
5.13%, 10/15/08 (g) 8,000 7,980
4.00%, 3/1/34 (d) 2,931 2,851
4.76%, 7/1/35 (d) 5,188 5,052
-----------
27,112
-----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (7.0%)
2.87%, 2/16/20 5,231 5,029
6.11%, 11/16/21 1,962 1,979
3.27%, 1/16/23 2,788 2,664
6.00%, 2/16/24 2,882 2,913
4.29%, 9/16/25 3,120 3,037
3.72%, 12/16/26 3,452 3,316
-----------
18,938
-----------
TOTAL U.S. GOVERNMENT AGENCIES 79,612
-----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
U.S. TREASURY OBLIGATIONS (9.1%)
U.S. TREASURY NOTES (9.1%)
3.00%, 11/15/07 (g) $ 6,410 $ 6,246
4.38%, 1/31/08 (g) 4,500 4,457
3.38%, 2/15/08 (g) 4,500 4,390
4.63%, 2/29/08 (g) 5,000 4,970
4.75%, 11/15/08 (g) 4,510 4,490
-----------
24,553
-----------
TOTAL U.S. TREASURY OBLIGATIONS 24,553
-----------
INVESTMENTS IN AFFILIATES (h) (2.2%)
Fifth Third Institutional Money
Market Fund 5,856,528 5,857
-----------
TOTAL INVESTMENTS IN AFFILIATES 5,857
-----------
SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES
LENDING (15.7%)
Pool of various securities for Fifth
Third Funds $ 42,583 42,583
-----------
TOTAL SHORT-TERM SECURITIES HELD AS
COLLATERAL FOR SECURITIES LENDING 42,583
-----------
TOTAL INVESTMENTS (COST $316,575)+ - 115.1% 311,928
LIABILITIES IN EXCESS OF OTHER
ASSETS - (15.1)% (40,935)
-----------
NET ASSETS - 100.0% $ 270,993
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
105
U.S. GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS (3.7%)
FINANCING CORPORATION (3.7%)
Hertz Vehicle Financing LLC,
Series 2005-2A, Class A3,
(AAA wrapped by MBIA),
5.59%, 2/25/11 (d) (e) (f) $ 2,000 $ 2,004
-----------
TOTAL CORPORATE BONDS 2,004
-----------
U.S. GOVERNMENT AGENCIES (83.6%)
FANNIE MAE (17.2%)
6.25%, 1/25/08 884 886
4.00%, 9/2/08 1,000 974
6.38%, 6/15/09 1,100 1,134
6.63%, 9/15/09 1,000 1,040
4.62%, 4/25/10 729 714
4.40%, 12/25/12 686 683
4.31%, 1/1/35 2,117 2,052
3.99%, 3/25/40 (d) 580 575
5.57%, 8/25/44 (d) 1,297 1,299
-----------
9,357
-----------
FEDERAL HOME LOAN BANK (6.4%)
5.12%, 8/14/06 (f) 1,990 1,986
4.06%, 8/25/09 667 647
4.84%, 1/25/12 826 835
-----------
3,468
-----------
FINANCING CORPORATION (9.3%)
3.59%, 4/5/09 ** 2,000 1,742
4.21%, 12/6/11 ** 2,000 1,535
4.81%, 6/6/15 ** 2,000 1,257
6.37%, 11/11/17 ** 1,000 547
-----------
5,081
-----------
FREDDIE MAC (29.3%)
2.75%, 3/15/08 1,450 1,393
5.50%, 7/15/10 1,000 996
6.88%, 9/15/10 2,000 2,116
5.88%, 3/21/11 1,000 1,017
4.50%, 11/15/12 1,000 958
5.25%, 4/18/16 2,000 1,977
4.00%, 12/15/21 468 461
5.00%, 12/15/32 1,100 1,096
5.00%, 1/15/34 1,000 913
6.50%, 5/15/34 (d) 1,277 1,213
5.50%, 7/15/35 1,977 1,830
6.00%, 9/1/36 TBA 2,000 1,989
-----------
15,959
-----------
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
U.S. GOVERNMENT AGENCIES, CONTINUED
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (12.9%)
3.59%, 11/16/17 $ 441 $ 426
3.96%, 9/16/21 759 738
3.27%, 1/16/23 842 805
4.39%, 5/16/23 862 843
5.50%, 2/20/31 2,000 1,976
5.50%, 12/20/32 1,000 953
5.50%, 11/20/33 1,000 936
0.97%, 6/17/45 2,924 164
1.06%, 12/16/47 3,334 200
-----------
7,041
-----------
SMALL BUSINESS ADMINISTRATION (6.5%)
4.94%, 8/10/15 (f) 3,657 3,564
-----------
TENNESSEE VALLEY AUTHORITY (2.0%)
6.79%, 5/23/12 1,000 1,072
-----------
TOTAL U.S. GOVERNMENT AGENCIES 45,542
-----------
U.S. TREASURY OBLIGATIONS (5.1%)
U.S. TREASURY BONDS (1.8%)
4.75%, 5/15/14 1,000 987
-----------
U.S. TREASURY NOTES (3.3%)
5.50%, 2/15/08 800 806
5.63%, 5/15/08 1,000 1,010
-----------
1,816
-----------
TOTAL U.S. TREASURY OBLIGATIONS 2,803
-----------
INVESTMENTS IN AFFILIATES (h) (11.0%)
Fifth Third Institutional Government
Money Market Fund 5,997,222 5,997
-----------
TOTAL INVESTMENTS IN AFFILIATES 5,997
-----------
TOTAL INVESTMENTS (COST $57,704)+ - 103.4% 56,346
LIABILITIES IN EXCESS OF OTHER
ASSETS - (3.4)% (1,869)
-----------
NET ASSETS - 100.0% $ 54,477
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
106
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (100.8%)
ARIZONA (6.7%)
Arizona State University, 5.00%, 7/1/26,
(Callable 7/1/15 @100) $ 1,000 $ 1,039
Greater Arizona Development Authority,
6.00%, 8/1/13, (Callable 8/1/08 @ 102) 1,070 1,134
Mesa Street and Highway Revenue,
5.25%, 7/1/23 600 657
-----------
2,830
-----------
CALIFORNIA (8.9%)
Cal Poly Pomona Foundation, Inc.,
5.50%, 2/1/20, (Callable 2/1/11 @ 101) 265 287
La Canada University School District,
Series A, GO, 5.50%, 8/1/24,
(Callable 8/1/14 @ 100) 1,000 1,092
Long Beach Community College
District, Series B, GO, 5.00%, 5/1/30 1,000 1,036
Placentia -Yorba Linda Union School
District, Series B, GO, 5.38%, 8/1/22,
(Callable 8/1/14 @ 100) 1,000 1,085
Sacramento County Sanitation Financing
Authority, 6.00%, 12/1/15,
(Callable 12/1/10 @ 101) 250 271
-----------
3,771
-----------
COLORADO (5.1%)
Denver City & County Airport Revenue,
5.00%, 11/15/08 1,020 1,044
Douglas County School District No.1,
GO, 5.75%, 12/15/21, (Callable
12/15/14 @ 100) 1,000 1,110
-----------
2,154
-----------
FLORIDA (5.1%)
Sunrise Utility Systems Revenue,
5.50%, 10/1/18 1,000 1,098
Volusia County School Board, Series A,
5.00%, 8/1/19, (Callable 8/1/15 @ 100) 1,010 1,058
-----------
2,156
-----------
ILLINOIS (7.8%)
Chicago Metropolitan Water
Reclamation District-Greater
Chicago, Capital Improvements,
GO, 7.25%, 12/1/12 500 596
Chicago Single Family Mortgage
Revenue, Series A, (AMT), 4.70%,
10/1/17, (Callable 4/1/09 @ 102) 170 172
Development Finance Authority,
Elmhurst Community School, 6.38%,
1/1/17, (Prerefunded 1/1/11 @ 100) 1,700 1,877
Finance Authority, 5.00%, 12/1/14,
(Callable 12/1/13 @ 100) 300 306
State GO, 5.88%, 10/1/17, (Callable
1/1/09 @ 100) 300 318
-----------
3,269
-----------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
IOWA (5.3%)
Finance Authority, Private College
Revenue, Drake University Project,
6.50%, 12/1/11 $ 2,055 $ 2,247
-----------
KANSAS (4.3%)
Geary County School District, GO,
5.25%, 9/1/17, (Callable 9/1/15 @ 100) 1,675 1,812
-----------
LOUISIANA (2.5%)
State Citizens Property Insurance Corp.,
Series B, 5.00%, 6/1/18, (Callable
6/1/16 @ 100) 1,000 1,056
-----------
MICHIGAN (11.7%)
Detroit Water Supply Systems,
Series A, 5.00%, 7/1/16 1,000 1,071
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.75%, 3/1/09 1,000 1,019
Kent Hospital Financial Authority
Revenue, Spectrum Health, Series A,
5.50%, 1/15/13, (Prerefunded
7/15/11 @ 101) 1,000 1,081
State Hospital Finance Authority
Revenue, 5.00%, 11/15/20, (Callable
11/15/16 @ 100) 500 515
State Strategic Fund Solidwaste
Disposal Revenue, 4.63%, 12/1/12 250 249
Strategic Fund Hope Network Project,
Series B, 5.13%, 9/1/13, (Callable
9/1/08 @ 102) 1,000 1,040
-----------
4,975
-----------
MISSOURI (6.1%)
Greene County School District, 6.20%,
3/1/18, (Callable 3/1/10 @ 100) 2,400 2,579
-----------
NEBRASKA (3.8%)
Omaha Series A, GO, 6.50%, 12/1/13 1,365 1,591
-----------
NEW MEXICO (2.3%)
Mortgage Financial Authority, Single
Family Mortgage, (AMT),
5.50%, 7/1/36 900 962
-----------
NEW YORK (2.5%)
State Housing Finance Agency, State
Personal Income Tax Revenue,
5.00%, 9/15/23, (Callable
9/15/15 @ 100) 1,000 1,045
-----------
CONTINUED
107
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
OHIO (3.8%)
Cuyahoga County, 5.25%, 12/1/18 $ 1,500 $ 1,615
-----------
OKLAHOMA (2.4%)
Tulsa International Airport (AMT),
5.50%, 6/1/10 1,000 1,030
-----------
OREGON (2.5%)
Sunrise Water Authority Revenue,
5.25%, 3/1/24, (Callable 3/1/14 @ 100) 1,000 1,064
-----------
PENNSYLVANIA (7.5%)
Central Dauphin School District, 6.75%,
2/1/24, (Callable 2/1/16 @ 100) 1,000 1,201
Higher Educational Facilities Authority
Revenue, Health System, Series A,
5.00%, 8/15/07 500 506
Higher Educational Facilities Authority,
Widener University, 3.85%, 7/15/13 430 409
Lancaster Higher Education Authority
College Revenue, 5.00%, 4/15/25,
(Callable 4/15/16 @ 100) 1,000 1,033
-----------
3,149
-----------
PUERTO RICO (5.0%)
Commonwealth, Refunding Series A,
5.00%, 7/1/30 1,000 1,033
Public Building Authority Revenue,
Series I, 5.50%, 7/1/23, (Callable
7/1/14 @ 100) 1,000 1,057
-----------
2,090
-----------
SOUTH CAROLINA (2.5%)
Georgetown County School District,
Series B, 5.00%, 3/1/19, (Callable
3/1/12 @ 102) 1,000 1,047
-----------
TENNESSEE (2.5%)
Energy Acquisition Corp., Gas Revenue,
Series A, 5.00%, 9/1/15 1,000 1,054
-----------
WASHINGTON (2.5%)
Metropolitan Park District Tacoma,
5.00%, 12/1/22, (Callable
12/1/15 @ 100) 1,000 1,041
-----------
TOTAL MUNICIPAL BONDS 42,537
-----------
CONTINUED
SHARES VALUE
----------- -----------
MONEY MARKETS (0.4%)
AIM Tax Free Money Market Fund 106 $ -- #
Dreyfus Tax Exempt Money
Market Fund 575 1
Goldman Sachs Financial Tax Free
Money Market Fund 151,120 150
Merrill Lynch Institutional Tax Exempt
Fund 667 1
-----------
TOTAL MONEY MARKETS 152
-----------
TOTAL INVESTMENTS (COST $41,649) + - 101.2% 42,689
LIABILITIES IN EXCESS OF OTHER
ASSETS - (1.2)% (520)
-----------
NET ASSETS - 100.0% $ 42,169
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
108
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (99.3%)
ALABAMA (4.4%)
Birmingham Baptist Medical Center
Special Care Facilities Financing $ 4,000 $ 4,104
Authority, Series A, 5.00%, 11/15/14
Mobile County, Refunding &
Improvements Warrants, 5.25%,
8/1/17, (Callable 8/1/14 @ 100) 3,080 3,326
-----------
7,430
-----------
ALASKA (1.2%)
Sport Fishing Revenue, 4.25%, 4/1/15 1,000 1,004
Sport Fishing Revenue, 4.38%, 4/1/16 1,000 1,009
-----------
2,013
-----------
ARIZONA (4.2%)
Mesa Street & Highway Revenue,
6.25%, 7/1/12 1,000 1,126
Mesa Street & Highway Revenue,
6.25%, 7/1/13, (Prerefunded
7/1/11 @ 100) 1,000 1,109
Pinal County Industrial Development
Authority Revenue, Correctional
Facilities Contract, 5.25%, 10/1/12 220 232
Tempe Performing Arts Center, Excise
Tax Revenue, 5.25%, 7/1/17,
(Callable 7/1/14 @ 100) 2,000 2,158
Tucson Street & Highway, User
Revenue, Junior Lien, Series 1994-E,
6.75%, 7/1/13 2,000 2,341
-----------
6,966
-----------
ARKANSAS (0.6%)
University of Arkansas Revenue,
5.00%, 3/1/16 1,000 1,069
-----------
CALIFORNIA (2.6%)
La Canada University School District,
Series A, GO, 5.50%, 8/1/24,
(Callable 8/1/14 @ 100) 375 410
Orange County, Series A, Refunding
Recovery, 6.00%, 6/1/10 3,000 3,248
Placentia -Yorba Linda Union School
District, Series B, GO, 5.38%,
8/1/22, (Callable 8/1/14 @ 100) 675 732
-----------
4,390
-----------
COLORADO (4.9%)
El Paso County School District
No. 038, GO, 6.38%, 12/1/16,
(Prerefunded 12/1/10 @ 100) 1,150 1,269
El Paso County School District
No. 038, GO, 6.38%, 12/1/18,
(Prerefunded 12/1/10 @ 100) 1,005 1,109
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
State Department of Corrections
Certificate of Participation, 5.00%,
3/1/17, (Callable 3/1/16 @ 100) $ 4,000 $ 4,237
Summitt County School District
No. RE1, GO, 5.75%, 12/1/12,
(Callable 12/1/11 @ 100) 1,465 1,602
-----------
8,222
-----------
CONNECTICUT (1.0%)
New Haven, Series B, GO, 5.75%,
11/1/09 1,500 1,594
-----------
FLORIDA (0.9%)
Sunrise Utility Systems Revenue,
5.50%, 10/1/18 1,425 1,566
-----------
HAWAII (5.2%)
Airport Systems Revenue, Series B
(AMT), 8.00%, 7/1/10 2,000 2,280
Highway Revenue, 5.50%, 7/1/10 765 811
State Highway Revenue, 5.50%,
7/1/17 5,000 5,578
-----------
8,669
-----------
ILLINOIS (3.9%)
Chicago Metropolitan Water
Reclamation District, Capital
Improvement, ETM, GO,
5.50%, 12/1/10 3,000 3,205
Development Financial Authority
Revenue, DePaul University,
Series C, 5.00%, 10/1/06 125 125
Development Financial Authority
Revenue, DePaul University,
Series C, 5.00%, 10/1/07 200 202
Educational Facilities Authority, Art
Institute, 4.13%, 3/1/30 1,000 987
Financial Authority, 4.75%, 12/1/10 200 202
Financial Authority, 5.00%, 12/1/11 250 256
Financial Authority, 5.00%, 12/1/12 275 282
Financial Authority, 5.00%, 12/1/13 275 282
Financial Authority Gas Supply
Revenue, Peoples Gas Light &
Coke Co., 4.30%, 6/1/35 1,000 991
-----------
6,532
-----------
INDIANA (5.5%)
Fort Wayne International Airport
Building Corp. Revenue, (AMT),
5.00%, 7/1/12 1,615 1,679
Fort Wayne International Airport
Building Corp. Revenue, (AMT),
5.00%, 7/1/13 1,695 1,765
CONTINUED
109
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
INDIANA, CONTINUED
Municipal Power Supply Agency
System Revenue, Series B,
5.88%, 1/1/10 $ 2,000 $ 2,130
Municipal Power Supply Agency
System Revenue, Series B,
6.00%, 1/1/13 3,000 3,345
State Financial Authority, Series A,
5.00%, 2/1/15 250 267
-----------
9,186
-----------
IOWA (0.1%)
Iowa State University, Science &
Technology Revenue, 3.75%, 7/1/10 140 139
-----------
KENTUCKY (1.8%)
Area Development Financing Lease
Program, 3.00%, 6/1/09 470 450
Area Development Lease Acquisition
Certificate of Participation,
2.70%, 12/1/08 250 239
Area Development Lease Acquisition
Certificate of Participation,
3.00%, 12/1/09 255 243
Floyd County Public Properties
Corp., 3.00%, 5/1/07, (Callable
10/23/06 @ 100) 475 467
Housing Corp., 3.45%, 1/1/10 275 271
Kenton County Airport Board, 5.00%,
3/1/10 730 753
Munfordville Industrial Development
Revenue, 3.10%, 6/1/08 300 294
Munfordville Industrial Development
Revenue, Louisville Bedding Co.
Project, (AMT), 3.50%, 6/1/09 310 303
-----------
3,020
-----------
LOUISIANA (0.9%)
Public Facilities Authority Revenue,
5.00%, 7/1/16 1,000 1,034
State Citizens Property Insurance Corp.,
Series B, 5.00%, 6/1/18, (Callable
6/1/16 @ 100) 400 422
-----------
1,456
-----------
MICHIGAN (23.0%)
Brandon School District, GO, 4.00%,
5/1/16 1,430 1,417
Building Authority Revenue, 5.00%,
10/15/29 1,500 1,570
Building Authority Revenue, Police
Communications, 5.50%, 10/1/12 350 381
Comprehensive Transportation, 5.50%,
5/15/11 950 1,019
Comprehensive Transportation, 4.00%,
5/15/15 320 319
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Detroit Water Supply Systems,
Series A, 5.00%, 7/1/16 $ 500 $ 536
Higher Education Facilites Authority
Revenue, Kalamazoo College
Project, 5.25%, 12/1/07 765 779
Higher Education Facilities Authority
Revenue, Hope College Project,
4.50%, 10/1/07 250 253
Higher Education Facilities Authority
Revenue, Hope College Project,
4.80%, 10/1/10, (Callable
10/1/09 @ 100) 590 598
Higher Education Facilities Authority,
Hope College Project, 4.70%, 10/1/09 200 204
Higher Education Student Loan
Authority Revenue, Series XII-Q,
(AMT), 5.05%, 9/1/08 3,885 3,940
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.60%, 9/1/08 1,000 1,012
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 5.20%, 9/1/08 4,225 4,310
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.75%, 3/1/09 1,800 1,834
Higher Education Student Loan
Authority Revenue, Series XVII-I,
(AMT), 3.95%, 3/1/11 1,000 977
Hospital Finance Authority, 4.35%,
3/1/09 500 501
Hospital Financial Authority Revenue,
Edward W. Sparrow Group, 5.25%,
11/15/08 1,125 1,157
Hospital Financial Authority Revenue,
Edward W. Sparrow Hospital, 5.25%,
11/15/09 1,165 1,208
Hospital Financial Authority Revenue,
Holland Community Hospital,
Series A, 5.00%, 1/1/15, (Callable
1/1/14 @ 100) 505 526
Kent Hospital Financial Authority
Revenue, Spectrum Health, Series A,
5.50%, 1/15/13, (Prerefunded
7/15/11 @ 101) 125 135
Kent Hospital Financial Authority
Revenue, Spectrum Health, Series B,
5.00%, 7/15/11 2,275 2,362
Kent Hospital Financial Authority,
Revenue, Spectrum Health, Series A,
5.25%, 1/15/09 1,075 1,106
CONTINUED
110
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Montague Public School District,
GO, 5.50%, 5/1/12, (Callable
11/1/11 @ 100) $ 1,005 $ 1,081
State Hospital Finance Authority
Revenue, Henry Ford Health
Systems-A, 5.00%, 11/15/18,
(Callable 11/15/16 @100) 500 516
State Hospital Financial Authority
Revenue, Marquette General Hospital
Obligations Group-A, 5.00%, 5/15/13 1,505 1,539
State Housing Development Authority,
Multi-Family Revenue, 4.15%, 4/20/11 320 319
State Housing Development Authority,
Multi-Family Revenue, 4.40%, 4/20/13 175 175
State Housing Development Authority,
Series A, (AMT), 3.95%, 12/1/12 660 654
State Strategic Fund Solidwaste
Disposal Revenue, 4.63%, 12/1/12 750 747
Strategic Fund, Limited Obligation
Revenue, Hope Network Project,
Series B, 4.80%, 9/1/08 1,000 1,016
Strategic Fund, Limited Obligation
Revenue, International Project,
3.00%, 8/1/07 1,415 1,392
Strategic Fund, Limited Obligation
Revenue, International Project,
4.75%, 8/1/11 2,240 2,284
Strategic Fund, Limited Obligation
Revenue, International Project,
5.00%, 8/1/13 820 849
Trunk Line, Series A, 5.25%, 11/1/13 600 649
Wyandotte Electric Revenue, (AMT),
5.00%, 10/1/13 600 624
Wyandotte Electric Revenue, (AMT),
4.50%, 10/1/14 600 604
-----------
38,593
-----------
MINNESOTA (2.6%)
Housing Finance Agency, 4.55%,
7/1/12, (Callable 7/1/11 @ 100) 1,140 1,144
St. Paul, Housing & Redevelopment
Authority Revenue, Smith Avenue
Transit Center, 3.50%, 6/1/12,
(Callable 6/1/10 @100) 2,000 1,934
State Housing Finance Agency,
Residential Housing, (AMT),
3.40%, 7/1/12 1,345 1,276
-----------
4,354
-----------
MISSISSIPPI (0.8%)
University Educational Building Corp.
Revenue, Series A, 5.00%, 8/1/18,
(Callable 8/1/16 @100) 1,270 1,340
-----------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
MISSOURI (1.4%)
Brentwood Tax Increment Revenue,
Brentwood Square Project,
4.13%, 5/1/11 $ 245 $ 244
Clay County Public School District
No. 53, Liberty Direct Deposit
Program, GO, 6.25%, 3/1/17,
(Callable 3/1/10 @ 100) 2,000 2,152
-----------
2,396
-----------
NEBRASKA (0.7%)
Financial Authority Single Family
Housing, Series C, 3.75%, 9/1/11 240 237
Financial Authority Single Family
Housing, Series C, 3.85%, 3/1/12 150 148
Investment Financial Authority, Single
Family Housing Revenue, Series D,
(AMT), 4.10%, 9/1/10 325 319
Investment Financial Authority, Single
Family Housing Revenue, Series D,
(AMT), 4.25%, 9/1/11 465 462
-----------
1,166
-----------
NEVADA (1.0%)
Clark County, GO, 4.50%, 6/1/17,
(Callable 6/1/16 @ 100) 1,325 1,353
Douglas County, Solid Waste Disposal,
3.00%, 12/1/07 100 98
Douglas County, Solid Waste Disposal,
3.50%, 12/1/08 100 99
Douglas County, Solid Waste Disposal,
3.75%, 12/1/09 100 99
-----------
1,649
-----------
NEW JERSEY (2.3%)
State Transportation Fund Authority,
Series A, 5.25%, 12/15/19 1,000 1,088
Turnpike Authority Revenue, Series A,
6.00%, 1/1/13 575 643
Turnpike Authority Revenue, Series A,
ETM, 6.00%, 1/1/13 1,925 2,155
-----------
3,886
-----------
NEW MEXICO (3.4%)
Mortgage Finance Authority, Series A2,
Class I, (AMT), 3.90%, 1/1/19,
(Callable 1/1/16 @ 100) 1,250 1,248
Mortgage Finance Authority, Series A2,
Class I, (AMT), 4.40%, 1/1/27,
(Callable 1/1/16 @ 100) 2,000 1,991
Mortgage Financial Authority, Single
Family Mortgage, (AMT), 4.05%,
7/1/26 930 926
Mortgage Financial Authority, Single
Family Mortgage, (AMT), 5.50%,
7/1/36 960 1,026
CONTINUED
111
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
NEW MEXICO , CONTINUED
Taos County Gross Receipts Tax
Revenue, County Educational
Improvements, 3.88%, 10/1/11 $ 565 $ 528
-----------
5,719
-----------
NEW YORK (0.6%)
Utica Industrial Development Agency
Civic Facility, 4.50%, 10/1/34 1,000 1,014
-----------
NORTH DAKOTA (0.2%)
Department of Transportation,
Grant & Revenue Anticipation
Bonds, 3.50%, 6/1/12 395 384
-----------
OHIO (2.6%)
Cuyahoga County, 5.25%, 12/1/18 915 985
Economic Development Revenue,
(AMT), 4.08%, 6/1/13 500 493
Housing Financial Agency Mortgage
Revenue, (AMT), 3.55%, 3/1/10 1,000 980
Housing Financial Agency Mortgage
Revenue, (AMT), 3.70%, 3/1/11 1,000 983
Housing Financial Agency Mortgage
Revenue, (AMT), 4.00%, 3/1/14 500 492
Summit County, GO, 6.00%, 12/1/09 400 426
-----------
4,359
-----------
OKLAHOMA (0.4%)
Housing Finance Agency, Single Family
Revenue, 4.25%, 9/1/25, (Callable
9/1/15 @ 100) 600 598
-----------
OREGON (4.3%)
Clackamas County School District, GO,
5.00%, 6/15/16 5,020 5,317
State Department Transportation
Highway Usertax, Series A, 5.25%,
11/15/16, (Callable 11/15/14 @ 100) 1,775 1,918
-----------
7,235
-----------
PENNSYLVANIA (1.8%)
Higher Educational Facilities Authority,
Widener University, 3.60%, 7/15/11 250 238
Higher Educational Facilities Authority,
Widener University, 3.75%, 7/15/12 405 385
Housing Finance Agency, 4.50%,
10/1/09 1,195 1,210
Lehigh Northampton Airport (AMT),
5.00%, 1/1/19, (Callable 1/1/15 @ 100) 1,175 1,209
-----------
3,042
-----------
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
PUERTO RICO (2.2%)
Commonwealth Government
Development, (AMT), 5.25%, 1/1/15 $ 1,500 $ 1,563
Commonwealth, Refunding Series A,
5.00%, 7/1/30 2,000 2,066
-----------
3,629
-----------
RHODE ISLAND (1.6%)
Depositors Economic Protection
Corp., Series A, ETM, 5.88%, 8/1/11 2,535 2,751
-----------
SOUTH CAROLINA (0.6%)
Anderson County School District
No. 002, Series B, GO, 6.00%, 3/1/13,
(Callable 3/1/10 @ 101) 890 962
-----------
TENNESSEE (3.5%)
Energy Acquisition Corp., Gas Revenue,
Series A, 5.00%, 9/1/15 2,000 2,107
Housing Development Agency, Series A,
4.00%, 7/1/10 1,100 1,094
Metropolitan Nashville Airport
Authority Revenue, (AMT), 5.38%,
7/1/14, (Callable 7/1/08 @ 102) 2,570 2,677
-----------
5,878
-----------
TEXAS (2.3%)
Dallas Fort Worth International Airport
Revenue, 5.00%, 11/1/15, (Callable
11/1/09 @ 100) 2,000 2,045
Hidalgo County Health Services,
Mission Hospital, Inc. Project,
4.00%, 8/15/06 250 250
Municipal Power Agency Revenue,
4.00%, 9/1/12 500 500
State Transportation
Community-Mobility Fund, GO,
5.00%, 4/1/19, (Callable 4/1/16 @ 100) 1,000 1,053
-----------
3,848
-----------
UTAH (0.3%)
Housing Corp., Single Family Mortgage
Revenue, Series A, Class I, (AMT),
2.35%, 7/1/07 500 490
-----------
VIRGINIA (1.3%)
Richmond, GO, 5.38%, 7/15/13,
(Prerefunded 7/15/11 @ 101) 2,000 2,158
-----------
CONTINUED
112
INTERMEDIATE MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
WASHINGTON (5.2%)
Energy Northwest Electric Revenue,
5.50%, 7/1/15 $ 3,190 $ 3,511
Grant County Public Utility District
No. 002, Electric Revenue,
5.00%, 1/1/11 2,485 2,599
King County School District No. 415,
Kent, Series A, GO, 5.55%, 12/1/11 2,000 2,152
Yakima County, GO, 5.25%, 12/1/16,
(Callable 12/1/12 @ 100) 425 451
-----------
8,713
-----------
TOTAL MUNICIPAL BONDS 166,416
-----------
MONEY MARKETS (0.1%)
AIM Tax Free Money Market Fund 105 -- #
Dreyfus Tax Exempt Money
Market Fund 311 -- #
Goldman Sachs Financial Tax Free
Money Market Fund 166,095 167
Merrill Lynch Institutional Tax Exempt
Fund 328 -- #
TOTAL MONEY MARKETS 167
-----------
TOTAL INVESTMENTS (COST $164,040)+ - 99.4% 166,583
OTHER ASSETS IN EXCESS OF
LIABILITIES - 0.6% 1,051
-----------
NET ASSETS - 100.0% $ 167,634
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (98.5%)
MICHIGAN (1.8%)
State Comprehensive Transportation,
4.00%, 5/15/14 $ 2,000 $ 2,003
-----------
OHIO (91.1%)
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 1,050
American Municipal Power - Ohio, Inc.,
5.25%, 1/1/11 1,825 1,931
Beavercreek Local School District,
6.60%, 12/1/15 1,500 1,740
Berea, GO, 5.13%, 12/1/13 1,080 1,111
Building Authority, 5.25%, 10/1/10,
(Callable 4/1/09 @ 101) 2,410 2,521
Butler County Hospital Facilities
Revenue, 4.75%, 11/15/18 820 845
Butler County Hospital Facilities
Revenue, 4.75%, 11/15/18,
(Callable 11/15/08 @ 101) 1,180 1,155
Cincinnati City School District,
Classroom Facilities Construction
& Improvements, 5.25%, 12/1/14,
(Callable 12/1/13 @ 100) 3,000 3,242
Cleveland Public Power System
Revenue, 5.25%, 11/15/16,
(Callable 11/15/06 @ 102) 4,900 5,018
Cleveland, GO, 5.25%, 12/1/17 1,125 1,215
Cleveland, Non Tax Revenue, Cleveland
Stadium Project, 5.00%, 12/1/15 1,225 1,302
Cuyahoga County, 5.25%, 12/1/18 2,000 2,153
Cuyahoga County Hospital Revenue,
5.50%, 2/15/09 1,245 1,292
Cuyahoga County Jail Facilities, GO,
5.25%, 10/1/13 3,000 3,243
Dayton-Montgomery County Port
Authority, (AMT), 4.75%, 11/15/15 695 699
Dayton-Montgomery County Port
Authority, Development-Parking Garage
Project, Series A, 5.00%, 11/15/17 1,000 1,004
Economic Development Revenue,
3.50%, 12/1/07 210 206
Economic Development Revenue,
4.40%, 12/1/12 815 812
Erie County Hospital Facilities
Revenue, 5.00%, 8/15/08 400 404
Erie County Hospital Facilities Revenue,
5.50%, 8/15/12 250 262
Franklin County Development Revenue,
5.50%, 10/1/12, (Callable
10/1/09 @ 101) 2,270 2,381
Franklin County, Online Computer
Library Center, 5.00%, 4/15/10 2,270 2,325
CONTINUED
113
OHIO MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Franklin County, Trinity Health, 5.00%,
6/1/13 $ 475 $ 496
Hamilton County Hospital Facilities
Revenue, Cincinnati Children's
Hospital, Series J, 4.50%, 5/15/14 1,510 1,553
Higher Education, Case Western
Reserve, 6.25%, 7/1/14 6,500 7,427
Higher Education, Dennison University
Project, 5.50%, 11/1/12, (Callable
11/1/11@ 101) 1,000 1,081
Higher Education, John Carroll
University, 5.25%, 11/15/14,
(Callable 11/15/13 @ 100) 1,435 1,522
Higher Education, John Carroll
University, 5.25%, 11/15/15,
(Callable 11/15/13 @ 100) 1,490 1,575
Higher Educational Facilities Revenue,
Ohio Northern University Project,
3.50%, 5/1/10 475 461
Higher Educational Facilities Revenue,
Ohio Northern University Project,
3.88%, 5/1/13 645 626
Housing Authority, 4.63%, 9/1/31,
(Callable 1/1/11 @ 100) 1,240 1,242
Housing Finance Agency, (AMT),
3.95%, 9/1/08 305 305
Housing Finance Agency, (AMT),
4.15%, 9/1/09 525 518
Housing Finance Agency, (AMT),
4.35%, 9/1/10 200 198
Housing Finance Agency, (AMT),
3.65%, 9/1/11 705 676
Housing Finance Agency, (AMT),
4.55%, 9/1/11 200 200
Housing Finance Agency, (AMT),
3.30%, 9/1/30 1,035 1,021
Housing Finance Agency, Mortgage
Revenue, (AMT), 3.90%, 3/1/13 1,000 986
Knox County Hospital Facilities
Revenue, 4.70%, 6/1/08 1,150 1,162
Knox County Hospital Facilities
Revenue, 5.00%, 6/1/12 6,250 6,486
Lucas County, 6.65%, 12/1/12 130 131
Mental Health Capital Facilities,
Series II-A, 5.00%, 6/1/13 2,135 2,259
Miami County Hospital Facility, 5.25%,
5/15/15 500 523
Montgomery County Catholic Health
Initiatives, Series A, 6.00%, 12/1/26 2,750 2,959
Municipal Electric Generation Agency,
Refunding, Joint Venture, 5-CTFS
Ben Int, 5.00%, 2/15/14 2,675 2,847
North Olmstead, 6.20%, 12/1/11 3,000 3,229
Ohio State Higher Education Facilities
Revenue, 5.00%, 5/1/16 2,010 2,136
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
OHIO, CONTINUED
Ohio State Higher Education Facilities
Revenue, 5.00%, 5/1/19 $ 3,115 $ 3,267
Ohio State Higher Education, Series A,
4.25%, 5/1/16 2,310 2,339
Ohio State Univeristy General Reciepts,
Series B, 5.25%, 6/1/18 5,880 6,264
State Higher Education Facility
Revenue, John Carroll University,
4.00%, 11/15/09 500 501
State Higher Educational Facility,
Mount Union College Project,
4.75%, 10/1/15 385 402
State Higher Educational Facility,
Mount Union College Project,
4.75%, 10/1/16 300 313
State Higher Educational Facility,
Mount Union College Project, 5.25%,
10/1/21, (Callable 10/1/16 @ 100) 980 1,035
State Mental Health Facilities, 4.13%, 6/1/15 1,600 1,604
State Schools, 5.00%, 6/15/13 1,000 1,067
State Solid Waste Revenue, Ohio Water
Development Authority, (AMT),
4.85%, 11/1/22 3,000 3,017
State Solid Waste Revenue, Republic
Services Project, (AMT), 4.25%, 4/1/33 3,470 3,355
Toledo-Lucas County, Port Authority
Special Assessment Revenue, Crocker
Park Public Improvement Project,
5.00%, 12/1/09 1,110 1,122
Toledo-Lucas County, Port Authority
Special Assessment Revenue,
Crocker Park Public Improvements
Project, 5.00%, 12/1/08 1,155 1,170
University of Cincinnati, 5.00%, 6/1/10 300 313
-----------
103,299
-----------
PUERTO RICO (2.7%)
Commonwealth, Refunding Series A,
5.00%, 7/1/30 3,000 3,099
-----------
WASHINGTON (2.9%)
Energy Northwest Electric Revenue,
5.50%, 7/1/15 3,000 3,301
-----------
TOTAL MUNICIPAL BONDS 111,702
-----------
MONEY MARKETS (2.2%)
Goldman Sachs Financial Tax Free
Money Market Fund 2,532,341 2,532
-----------
TOTAL MONEY MARKETS 2,532
-----------
TOTAL INVESTMENTS (COST $112,932)+ - 100.7% 114,234
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.7)% (840)
-----------
NET ASSETS - 100.0% $ 113,394
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
114
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (100.6%)
MICHIGAN (97.9%)
Ann Arbor Water Supply Systems,
5.00%, 2/1/10 $ 880 $ 915
Avondale School District, UTGO,
5.00%, 5/1/10 800 832
Birmingham City School District,
5.00%, 11/1/10 1,905 1,991
Building Authority Revenue, 5.00%,
10/15/29 1,000 1,046
Certificate of Participation, Series A,
5.00%, 9/1/31 2,000 2,084
Clarkston Community Schools, 5.25%,
5/1/29 1,000 1,081
Clarkston Schools, 4.00%, 5/1/12 200 201
Coldwater Electric Utility Revenue,
4.50%, 8/1/11 515 525
Coldwater Electric Utility Revenue,
4.50%, 8/1/13 570 582
Comprehensive Transportation,
Series A, 5.25%, 5/15/09 1,000 1,039
Detroit Convention Facilities, 5.00%,
9/30/08 2,000 2,048
Detroit Water Supply Systems,
Series A, 5.00%, 7/1/15 1,000 1,071
Grand Rapids & Kent County Joint
Building Authority, GO, 5.50%,
10/1/09 605 636
Grand Rapids & Kent County Joint
Building Authority, UTGO, 5.50%,
10/1/07 535 546
Higher Education Facilities Authority
Revenue, Hope College Project,
4.60%, 10/1/08 320 325
Higher Education Facilities Authority
Revenue, Kalamazoo College
Project, 5.25%, 12/1/06 725 729
Higher Education Facilities Authority,
Thomas M. Cooley Law School,
4.75%, 5/1/07 1,265 1,270
Higher Education Student Loan
Authority Revenue, (AMT), 5.00%,
3/1/07 2,525 2,535
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.60%, 9/1/08 1,000 1,012
Higher Education Student Loan
Authority Revenue, Series XII-W,
(AMT), 4.75%, 3/1/09 200 204
Higher Education Student Loan
Authority Revenue, Series XVII-I
(AMT), 3.65%, 3/1/10 1,000 978
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
3.85%, 3/1/07 200 199
CONTINUED
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Hospital Financial Authority Revenue,
Hospital Crittenton, Series A,
4.15%, 3/1/08 $ 300 $ 301
Hospital Financial Authority Revenue,
McLaren Health Care, Series C,
4.00%, 8/1/08 405 406
Hospital Financial Authority Revenue,
Sparrow Obligation Group,
5.00%, 11/15/06 735 736
Housing Development Authority,
(AMT), Series B, 3.55%, 12/1/06 175 175
Housing Development Authority,
(AMT), Series B, 3.85%, 12/1/07 215 213
Housing Development Authority,
(AMT), Series B, 4.13%, 12/1/08 305 304
Housing Development Authority,
(AMT), Series B, 4.35%, 12/1/09 355 356
Housing Development Authority,
(AMT), Series B, 4.55%, 12/1/10 455 460
Housing Development Authority,
(AMT), Series B, 4.65%, 12/1/11 485 493
Housing Development Authority,
Parkway Meadows Project,
3.50%, 10/15/08 930 919
Housing Development Authority,
Parkway Meadows Project, 3.50%,
10/15/09 710 710
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.50%, 5/15/08 750 771
Kalamazoo Hospital Finance Authority
Revenue, Bronson Methodist Hospital,
5.00%, 10/15/08 500 512
Kent, Hospital Financial Authority
Revenue, Spectrum Health, Series B,
5.00%, 7/15/11 600 623
Kent, Hospital Financial Authority
Revenue, Spectrum Health, 5.25%,
1/15/08 430 438
Mount Clemens Community School
District, 5.50%, 5/1/12 1,075 1,162
Municipal Building Authority Revenue,
Government Loan Program, Series C,
5.00%, 5/1/10 1,000 1,042
Muskegon County, Wastewater
Management System, No. 1, (AMT),
5.00%, 7/1/08 1,000 1,020
Novi Community School District,
Building & Site Improvements, 5.00%,
10/1/08 2,320 2,378
South Macomb Disposal Authority
Revenue, 5.00%, 9/1/08 1,115 1,142
CONTINUED
115
MICHIGAN MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
State Hospital Finance Authority
Revenue, 5.00%, 11/15/14 $ 250 $ 262
State Hospital Finance Authority
Revenue, Holland Community
Hospital, 4.15%, 1/1/12 450 448
State Hospital Finance Authority
Revenue, General Hospital
Obligations Group, 5.00%, 5/15/10 905 927
State Housing Development Authority,
Multi-Family Revenue, 3.55%, 4/20/08 395 394
State Strategic Fund Solidwaste
Disposal Revenue, 4.63%, 12/1/12 250 249
Strategic Fund, Hope Network Project,
Series B, 4.75%, 9/1/07 615 619
Strategic Fund, Limited Obligation
Revenue, Consumers Energy
Company Project, 3.38%, 6/15/10 2,000 1,937
Strategic Fund, Limited Obligation
Revenue, Henry Ford Museum Village
Project, 3.68%, 12/1/33 (d) 1,680 1,680
University of Michigan Hospital
Revenue, 5.00%, 12/1/08 2,000 2,048
University of Michigan Hospital
Revenue, 5.00%, 12/1/09 510 528
University of Michigan Hospital
Revenue, 3.67%, 12/1/35 (d) 900 900
University of Michigan, Medical Service
Plan, Series A-1, 3.65%, 12/1/21 (d) 175 175
University of Michigan, Series A-2,
3.65%, 12/1/24 (d) 400 400
Warren Building Authority, 3.70%,
11/1/09 225 223
Wayne Charter County, Airport
Revenue, Detroit Metro County,
Series D, (AMT), 5.25%, 12/1/06 2,000 2,009
Wayne County Airport Authority,
5.00%, 12/1/09 1,000 1,029
Wayne County Community College,
5.25%, 7/1/09 1,000 1,040
Wayne-Westland Community Schools,
5.00%, 5/1/10 1,000 1,041
Wyandotte City School District, 4.00%,
5/1/13 810 814
Wyandotte, Electric Revenue, (AMT),
4.50%, 10/1/11 600 608
Wyandotte, Electric Revenue, (AMT),
5.00%, 10/1/12 600 623
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/06 245 245
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/07 255 254
CONTINUED
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS, CONTINUED
MICHIGAN, CONTINUED
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/08 $ 270 $ 269
Zeeland, Water System Revenue,
(AMT), 4.00%, 10/1/09 280 275
-----------
55,007
-----------
PUERTO RICO (2.7%)
Commonwealth Government
Development, (AMT), 5.25%, 1/1/15 500 521
Public Buildings Authority Revenue,
Refunding, Government Facilities,
Series K, 4.50%, 7/1/22 1,000 1,004
-----------
1,525
-----------
TOTAL MUNICIPAL BONDS 56,532
-----------
MONEY MARKETS (0.1%)
AIM Tax Free Money Market Fund 174 -- #
Dreyfus Tax Exempt Money
Market Fund 103 -- #
Goldman Sachs Financial Tax Free
Money Market Fund 69,794 70
Merrill Lynch Institutional Tax Exempt
Fund 1,772 2
-----------
TOTAL MONEY MARKETS 72
-----------
TOTAL INVESTMENTS (COST $57,108)+ - 100.7% 56,604
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.7)% (400)
-----------
NET ASSETS - 100.0% $ 56,204
===========
SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AND NOTES TO FINANCIAL STATEMENTS.
116
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
JULY 31, 2006
(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 designated as initial margin on open
futures contracts.
(b) Affiliate.
(c) Dollar value included in the security description indicated represents
expected per share annual dividend.
(d) Variable rate security. Rate presented represents rate in effect at July
31, 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 Funds 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 designated as collateral for TBA
security.
(g) All or part of this security was on loan at July 31, 2006.
(h) Investment is in Institutional Shares of underlying fund.
(i) Common Stock.
(j) Security was fair valued at July 31, 2006 using procedures approved by the
Board of Trustees.
The following abbreviations are used in these Schedules of Portfolio
Investments:
ADR - American Depositary Receipt
AMT - Alternative Minimum Tax Paper
CBTCS - Convertible Bond Transferable Custodial Security
ETM - Escrowed to Maturity
GDR - Global Depositary Receipts
GO - General Obligation
SPDR - Standard & Poor's Depositary Receipt
TBA - To Be Announced
TRAINS - Targeted Return Index Security
UTGO - Unlimited Tax General Obligation
W/I - When Issued
COST OF NET
INVESTMENTS FOR GROSS GROSS UNREALIZED
FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/
FIFTH THIRD FUNDS PURPOSES APPRECIATION DEPRECIATION (DEPRECIATION)
--------------- ------------ ------------ --------------
Small Cap Growth Fund $173,216 $ 34,057 $ (6,358) $ 27,699
Mid Cap Growth Fund 415,843 71,310 (9,830) 61,480
Quality Growth Fund 873,904 84,224 (33,903) 50,321
Large Cap Core Fund 190,833 21,480 (4,760) 16,720
Equity Index Fund 233,129 229,542 (15,798) 213,744
Balanced Fund 90,987 3,104 (2,475) 629
Micro Cap Value Fund 126,713 23,166 (8,378) 14,788
Small Cap Value Fund 146,817 10,770 (5,234) 5,536
Multi Cap Value Fund 309,022 76,602 (5,736) 70,866
Disciplined Large Cap Value Fund 596,439 108,847 (16,949) 91,898
LifeModel Aggressive Fund 149,800 24,854 (1,044) 23,810
LifeModel Moderately Aggressive Fund 289,216 42,472 (3,145) 39,327
LifeModel Moderate Fund 491,798 38,674 (9,780) 28,894
LifeModel Moderately Conservative Fund 97,756 9,491 (2,365) 7,126
LifeModel Conservative Fund 54,455 2,124 (1,804) 320
Strategic Income Fund 157,548 7,964 (5,247) 2,717
Dividend Growth Fund 21,518 1,484 (471) 1,013
Technology Fund 73,326 1,895 (2,758) (863)
International Equity Fund 427,657 102,151 (37,255) 64,896
High Yield Bond Fund 72,362 206 (2,210) (2,004)
Bond Fund 318,952 1,134 (5,833) (4,699)
Intermediate Bond Fund 499,050 643 (7,653) (7,010)
Short Term Bond Fund 317,750 (1,113) (4,709) (5,822)
U.S. Government Bond Fund 57,333 482 (1,469) (987)
Municipal Bond Fund 41,625 1,081 (17) 1,064
Intermediate Municipal Bond Fund 164,029 3,470 (916) 2,554
Ohio Municipal Bond Fund 112,757 2,058 (581) 1,477
Michigan Municipal Bond Fund 57,092 161 (649) (488)
SEE NOTES TO FINANCIAL STATEMENTS
117
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
Open futures contracts as of July 31, 2006
(Amounts in thousands, except contract amount):
UNREALIZED
NUMBER OF NOTIONAL APPRECIATION/ MARKET
CONTRACTS CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE
--------- ----------------------------- -------- -------------- --------
Large Cap Core Fund 16 Standard & Poors 500, 9/14/06 $ 5,095 $ 32 $ 5,127
==== ======== ====== ========
Equity Index Fund 41 Standard & Poors 500, 9/14/06 12,939 199 13,138
==== ======== ====== ========
International Equity Fund 72 CAC 40, 9/15/06 4,436 189 4,625
7 DAX, 9/15/06 1,206 69 1,275
(90) DJ, 9/15/06 (4,109) (138) (4,247)
34 NIKKEI 225, 9/7/06 4,587 (16) 4,571
70 TOPIX, 9/7/06 9,351 239 9,590
82 FTSE, 9/21/06 2,007 262 2,269
43 HANG SENG, 8/30/06 4,687 10 4,697
---- -------- ------ --------
218 $ 22,165 $ 615 $ 22,780
==== ======== ====== ========
The table below reflects the Fund's activities in written options, all of which
were for purposes of earning additional income during the period. No other Funds
engaged in written option contracts during the year needed July 31, 2006.
BALANCE AT OPTIONS OPTIONS BALANCE AT
NUMBER OF CONTRACTS JULY 31, 2005 WRITTEN EXPIRED JULY 31, 2006
----------------- ------- ---------- -------------
Balanced 34 -- (34) --
Dividend Growth -- 40 (40) --
PREMIUMS
Balanced $ 8 $-- $ (8) $--
Dividend Growth -- 7 (7) --
As of July 31, 2006, the following Funds had securities on loan with the
following market values and collateral amounts:
MARKET
OPEN VALUE OF AVERAGE
CASH COLLATERAL LOANED LOAN
COLLATERAL COMMITMENTS SECURITIES OUTSTANDING*
---------- ----------- ---------- ------------
Small Cap Growth Fund $ 53,720 $ 36 $ 52,019 $ 49,922
Mid Cap Growth Fund 105,117 267 101,984 89,713
Quality Growth Fund 152,650 (265) 147,451 143,865
Large Cap Core Fund 19,054 (57) 18,381 17,451
Equity Index Fund 38,883 (203) 37,422 44,837
Balanced Fund 6,463 40 6,294 7,643
Micro Cap Value Fund 23,113 (40) 22,325 17,435
Small Cap Value Fund 30,712 23 29,742 24,762
Multi Cap Value Fund 52,482 (94) 50,691 47,368
Disciplined Large Cap Value Fund 76,631 (996) 73,157 77,894
Strategic Income Fund 6,581 (7) 6,360 8,025
Dividend Growth Fund 862 (7) 827 1,055
Technology Fund 16,640 17 16,119 16,515
International Equity Fund 28,616 (114) 27,576 26,856
High Yield Bond Fund 5,202 6 5,039 3,330
Bond Fund 745 2 723 8,156
Intermediate Bond Fund 21,265 26 20,603 16,934
Short Term Bond Fund 42,583 (53) 41,152 24,643
__________________________
* For the periods when securities lending was utilized.
SEE NOTES TO FINANCIAL STATEMENTS
118
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
The cash collateral received by the Fifth Third Funds at July 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 5.45% 7/24/07
Floating Rate Security AISF Global Finance 10,002 5.38% 12/11/06
Floating Rate Security American Express 35,000 5.35% 7/20/07
Floating Rate Security Bank of America 30,008 5.76% 8/22/06
Floating Rate Security Bank of New York Co., Inc. 40,000 5.34% 7/11/07
Floating Rate Security BNP Paribas 15,000 5.14% 5/18/07
Floating Rate Security Canadian Imperial Bank NY 20,000 5.38% 7/25/07
Floating Rate Security Florida Heart Group 8,705 5.40% 4/1/14
Floating Rate Security General Electric Capital Corp. 7,704 5.45% 8/9/07
Floating Rate Security General Electric Capital Corp. 25,006 5.41% 12/8/06
Floating Rate Security Goldman Sachs Group, Inc. 27,000 5.40% 1/12/07
Floating Rate Security Guiding Light Church 10,700 5.40% 3/1/25
Floating Rate Security HSBC Finance Corp. 35,000 5.43% 7/24/07
Floating Rate Security IBM Corp. 35,000 5.34% 8/9/07
Floating Rate Security Lehman 10,006 5.37% 5/31/07
Floating Rate Security Lehman 15,000 5.20% 6/26/07
Floating Rate Security Merrill Lynch 30,000 5.36% 5/29/07
Floating Rate Security Metlife Global 30,018 5.41% 3/16/07
Floating Rate Security Morgan Stanley 10,000 5.37% 8/6/07
Floating Rate Security Morgan Stanley 5,000 5.37% 8/6/07
Floating Rate Security Morgan Stanley 25,000 5.39% 8/6/07
Floating Rate Security National Australia Bank 25,000 5.31% 8/9/07
Floating Rate Security National City Bank 30,002 5.46% 4/4/07
Floating Rate Security Toyota 30,016 5.56% 10/16/06
Repurchase Agreement Barclays Capital Markets 47,152 5.28% 8/1/06
Repurchase Agreement Deutsche Bank Securities, Inc. 100,000 5.27% 8/1/06
SEE NOTES TO FINANCIAL STATEMENTS
119
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
International Equity Fund Foreign Currency Contracts as of July 31, 2006:
CONTRACT CONTRACT CURRENT UNREALIZED
DELIVERY AMOUNT (LOCAL VALUE U.S. VALUE APPRECIATION/
DATE CURRENCY) DOLLAR U.S. DOLLAR (DEPRECIATION)
- ---------------------- ------------- ---------- ----------- --------------
BRITISH POUND STERLING
- --------------------------------------
Short Contracts
8/17/06 2,604 $ 4,932 $ 4,866 $ 66
8/17/06 951 1,755 1,777 (22)
Long Contracts
8/17/06 4,806 9,125 8,981 (144)
8/17/06 1,955 3,708 3,654 (54)
EURO
- --------------------------------------
Short Contracts
9/14/06 2,357 2,983 3,019 (36)
9/14/06 1,570 1,988 2,011 (23)
Long Contacts
8/17/06 10,796 13,926 13,806 (120)
8/17/06 8,020 10,433 10,256 (177)
9/14/06 1,961 2,481 2,512 31
9/14/06 833 1,054 1,067 13
9/14/06 3,543 4,493 4,539 46
HONG KONG DOLLAR
- --------------------------------------
Short Contracts
8/17/06 40,714 5,259 5,244 15
Long Contracts
8/17/06 3,333 430 429 (1)
JAPANESE YEN
- --------------------------------------
Short Contracts
8/17/06 1,282,753 11,882 11,220 662
8/17/06 945,086 8,731 8,267 464
8/17/06 62,442 578 546 32
8/17/06 129,838 1,175 1,136 39
8/17/06 1,086,279 9,813 9,502 311
9/14/06 1,066,989 9,433 9,370 63
9/14/06 1,547,623 13,667 13,591 76
9/14/06 602,397 5,323 5,290 33
Long Contracts
8/17/06 1,469,343 13,614 12,853 (761)
9/14/06 1,352,172 11,944 11,875 (69)
9/14/06 611,136 5,399 5,367 (32)
9/14/06 1,188,572 10,504 10,438 (66)
9/14/06 80,099 707 703 (4)
SOUTH AFRICAN RAND
- --------------------------------------
Long Contracts
9/14/06 11,100 1,614 1,595 (19)
9/14/06 2,467 359 354 (5)
SEE NOTES TO FINANCIAL STATEMENTS
120
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121
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
The investment concentrations for the Equity Funds as a percentage of net
assets, by industry, as of July 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% -- -- -- 0.2% 1.1% -- --
Aerospace/Defense -- -- -- 3.5% 2.1% -- -- 1.4%
Agriculture -- -- -- 1.3% 1.8% -- -- 0.4%
Airlines -- -- -- --^ 0.1% 0.3% -- --
Apparel 1.2% 4.5% 1.9% 0.6% 0.3% 4.6% 1.6% 0.4%
Auto Manufacturers -- -- -- -- 0.4% -- -- 0.7%
Auto Parts & Equipment 1.1% -- -- 0.5% 0.1% -- -- 1.3%
Banks 1.6% 1.7% 4.5% 6.4% 6.8% 4.5% 9.5% 9.7%
Beverages -- -- 1.7% 1.7% 2.2% -- 2.2% 0.9%
Biotechnology 1.2% -- 3.1% 0.7% 1.0% -- -- --
Building Materials 1.0% -- -- 0.7% 0.2% 1.9% -- 0.5%
Cash Equivalents 36.5% 29.1% 20.4% 10.1% 9.5% 19.4% 25.1% 16.2%
Chemicals -- -- 1.0% 2.3% 1.2% 1.5% 6.7% 3.7%
Closed-end Funds -- -- -- -- -- -- -- --
Coal -- -- 1.0% -- -- -- -- --
Commercial Services 5.1% 7.7% 6.4% 0.4% 0.6% 3.8% 5.7% 0.6%
Computers 4.2% 4.3% 2.8% 4.9% 3.6% 4.2% 4.0% 0.9%
Cosmetics/Personal Care -- -- 3.1% 1.1% 2.2% -- -- --
Distribution/Wholesale 4.5% 2.4% -- -- 0.1% -- -- --
Diversified Financial Services 1.0% 5.0% 3.4% 9.8% 8.0% -- 1.0% 6.4%
Electric -- -- -- 3.4% 3.3% -- 4.1% 5.6%
Electrical Components & Equipment 5.5% -- -- 0.9% 0.3% 1.2% 2.7% --
Electronics 0.8% 2.7% -- 0.8% 0.5% 3.1% 1.4% 1.2%
Engineering & Construction 1.6% -- -- -- 0.1% 0.6% -- --
Entertainment 1.1% 1.7% -- -- 0.1% 0.4% -- --
Environmental Control -- 1.2% 1.0% 0.4% 0.2% 1.3% -- --
Food 1.5% -- 1.0% 2.4% 1.7% 3.0% 3.0% 7.3%
Food Service -- -- -- -- -- -- -- --
Forest Products & Paper -- -- -- 0.8% 0.4% -- 3.2% --
Gas -- -- -- -- 0.2% 0.9% 2.6% --
Hand/Machine Tools -- -- -- -- 0.1% -- -- 1.4%
Healthcare-Products 7.7% 8.1% 3.4% 1.5% 3.2% 3.8% 1.0% 1.0%
Healthcare-Services 2.3% 4.1% 2.0% 1.1% 1.7% 2.6% 4.1% 2.1%
Holding Companies-Diversified -- -- -- -- -- -- -- --
Home Builders -- 0.7% -- -- 0.2% -- -- --
Home Furnishings -- -- -- -- 0.1% 1.6% 2.2% --^
Household Products/Wares 1.3% -- -- -- 0.2% 1.6% -- 0.7%
Housewares -- -- -- -- 0.1% -- -- --
Insurance 2.5% 1.4% 2.1% 4.2% 4.7% 5.6% 3.6% 6.4%
Internet 1.4% -- 0.7% 0.7% 1.5% 4.7% -- 0.2%
Investment Companies 9.1% 8.4% 3.4% 2.6% 3.2% 8.3% 2.8% 2.9%
Iron/Steel 1.6% 1.9% -- 0.4% 0.3% 1.5% -- --
Leisure Time -- -- -- -- 0.3% 0.7% -- 0.3%
Lodging -- 4.9% 3.6% -- 0.4% -- -- --
Machinery-Construction & Mining 2.3% 2.9% -- -- 0.4% -- -- --
Machinery-Diversified 1.5% 1.4% 3.0% 0.1% 0.4% -- 2.6% 1.2%
Media -- -- 2.1% 4.2% 3.1% -- 1.1% 1.7%
Metal Fabricate/Hardware -- 1.9% -- -- -- 1.5% -- --
Mining -- -- -- 0.2% 0.6% 1.0% -- 1.0%
Miscellaneous Manufacturing -- 2.3% 4.8% 6.0% 4.9% 0.7% -- 4.4%
Office/Business Equipment -- -- -- 0.2% 0.2% -- -- 0.3%
Oil & Gas 3.2% 7.4% -- 9.4% 8.3% 0.8% 1.8% 11.4%
Oil & Gas Services 5.4% 2.2% 3.8% 1.0% 1.5% 3.5% 1.9% 1.6%
Packaging & Containers -- -- -- -- 0.1% -- -- --
Pharmaceuticals 5.0% 5.8% 9.7% 4.3% 6.2% 2.8% -- 5.4%
Pipelines -- -- -- -- 0.3% -- -- --
Real Estate 1.0% -- -- -- 0.1% -- -- --
REITS -- -- -- -- 0.9% 4.8% 3.1% --
Retail 8.8% 3.5% 11.5% 7.3% 5.4% 4.9% 9.7% 5.6%
Savings & Loans -- -- -- -- 0.6% 5.7% 1.2% 0.5%
Semiconductors 4.0% 4.3% 5.0% 2.7% 2.5% 2.1% 3.5% 2.5%
Software 5.8% 2.9% 6.8% 5.0% 3.4% 0.9% 1.1% --
Telecommunications 3.2% 6.4% 8.1% 5.1% 5.8% 4.6% 5.8% 6.8%
Textiles -- -- 0.4% -- --^ 0.8% -- --
Toys/Games/Hobbies -- -- -- -- 0.1% -- -- 0.5%
Transportation 1.6% 1.4% 1.5% 1.4% 1.6% 2.4% 6.4% 2.2%
Water -- -- -- -- -- -- -- --
_______________________________
^ Amount is less than 0.05%.
SEE NOTES TO FINANCIAL STATEMENTS
122
DISCIPLINED LIFEMODEL LIFEMODEL
LARGE CAP LIFEMODEL MODERATELY LIFEMODEL MODERATELY
VALUE AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE
FUND FUND SM FUND SM FUND SM FUND SM
----------- ---------- ---------- --------- ------------
Advertising -- -- -- -- --
Aerospace/Defense 2.0% -- -- -- --
Agriculture 3.0% -- -- -- --
Airlines -- -- -- -- --
Apparel -- -- -- -- --
Auto Manufacturers 2.3% -- -- -- --
Auto Parts & Equipment -- -- -- -- --
Banks 10.8% -- -- -- --
Beverages 2.5% -- -- -- --
Biotechnology -- -- -- -- --
Building Materials -- -- -- -- --
Cash Equivalents 12.5% -- -- -- --
Chemicals 3.2% -- -- -- --
Closed-end Funds -- -- -- -- --
Coal -- -- -- -- --
Commercial Services 1.3% -- -- -- --
Computers 2.6% -- -- -- --
Cosmetics/Personal Care -- -- -- -- --
Distribution/Wholesale -- -- -- -- --
Diversified Financial Services 7.4% -- -- -- --
Electric 2.1% -- -- -- --
Electrical Components & Equipment -- -- -- -- --
Electronics 1.3% -- -- -- --
Engineering & Construction -- -- -- -- --
Entertainment -- -- -- -- --
Environmental Control -- -- -- -- --
Food 3.8% -- -- -- --
Food Service -- -- -- -- --
Forest Products & Paper -- -- -- -- --
Gas -- -- -- -- --
Hand/Machine Tools 0.8% -- -- -- --
Healthcare-Products 0.9% -- -- -- --
Healthcare-Services 0.9% -- -- -- --
Holding Companies-Diversified -- -- -- -- --
Home Builders -- -- -- -- --
Home Furnishings -- -- -- -- --
Household Products/Wares 1.0% -- -- -- --
Housewares -- -- -- -- --
Insurance 8.9% -- -- -- --
Internet -- -- -- -- --
Investment Companies 2.7% 100.8% 100.5% 100.0% 101.1%
Iron/Steel -- -- -- -- --
Leisure Time 1.9% -- -- -- --
Lodging -- -- -- -- --
Machinery-Construction & Mining -- -- -- -- --
Machinery-Diversified 1.5% -- -- -- --
Media 2.2% -- -- -- --
Metal Fabricate/Hardware -- -- -- -- --
Mining 1.7% -- -- -- --
Miscellaneous Manufacturing 3.9% -- -- -- --
Office/Business Equipment 1.5% -- -- -- --
Oil & Gas 14.1% -- -- -- --
Oil & Gas Services -- -- -- -- --
Packaging & Containers -- -- -- -- --
Pharmaceuticals 6.3% -- -- -- --
Pipelines -- -- -- -- --
Real Estate -- -- -- -- --
REITS -- -- -- -- --
Retail 1.3% -- -- -- --
Savings & Loans -- -- -- -- --
Semiconductors 2.7% -- -- -- --
Software -- -- -- -- --
Telecommunications 5.3% -- -- -- --
Textiles -- -- -- -- --
Toys/Games/Hobbies -- -- -- -- --
Transportation -- -- -- -- --
Water -- -- -- -- --
LIFEMODEL DIVIDEND INTERNATIONAL
CONSERVATIVE GROWTH TECHNOLOGY EQUITY
FUND SM FUND FUND FUND
------------ -------- ---------- -------------
Advertising -- -- 1.1% 0.1%
Aerospace/Defense -- 5.2% -- 0.4%
Agriculture -- 2.0% -- 0.7%
Airlines -- -- -- --
Apparel -- 1.1% -- 0.2%
Auto Manufacturers -- -- -- 3.8%
Auto Parts & Equipment -- 1.0% -- 0.7%
Banks -- 10.5% -- 15.6%
Beverages -- 6.3% -- 1.3%
Biotechnology -- 1.6% 4.4% --^
Building Materials -- -- -- 1.5%
Cash Equivalents -- 4.1% 30.1% 9.0%
Chemicals -- 4.6% -- 2.7%
Closed-end Funds -- -- -- 0.1%
Coal -- -- -- --^
Commercial Services -- -- 1.6% 0.6%
Computers -- 0.9% 9.1% 0.4%
Cosmetics/Personal Care -- 4.7% -- 0.5%
Distribution/Wholesale -- -- -- 1.1%
Diversified Financial Services -- 8.4% -- 2.7%
Electric -- -- -- 3.1%
Electrical Components & Equipment -- 1.8% 1.0% 1.1%
Electronics -- -- 5.5% 1.7%
Engineering & Construction -- -- -- 0.8%
Entertainment -- -- 2.8% 0.2%
Environmental Control -- -- -- --
Food -- 3.9% -- 3.6%
Food Service -- -- -- 0.2%
Forest Products & Paper -- -- -- 0.4%
Gas -- -- -- 0.5%
Hand/Machine Tools -- -- 1.2% 0.5%
Healthcare-Products -- 9.2% 1.1% 0.5%
Healthcare-Services -- -- 2.0% --^
Holding Companies-Diversified -- -- -- 0.5%
Home Builders -- -- -- 0.4%
Home Furnishings -- -- -- 0.8%
Household Products/Wares -- -- -- 0.3%
Housewares -- -- -- 0.1%
Insurance -- 2.1% -- 4.4%
Internet -- -- 5.8% 0.3%
Investment Companies 100.3% 3.7% 2.9% 3.5%
Iron/Steel -- -- -- 1.3%
Leisure Time -- -- -- 0.2%
Lodging -- 2.0% -- 0.3%
Machinery-Construction & Mining -- -- -- 0.3%
Machinery-Diversified -- 0.4% -- 0.6%
Media -- 1.1% -- 0.8%
Metal Fabricate/Hardware -- -- -- 0.2%
Mining -- -- -- 3.2%
Miscellaneous Manufacturing -- 6.1% 1.6% 1.7%
Office/Business Equipment -- -- -- 0.8%
Oil & Gas -- 8.6% -- 9.1%
Oil & Gas Services -- 1.7% -- --
Packaging & Containers -- -- -- 0.1%
Pharmaceuticals -- 4.4% 2.5% 6.9%
Pipelines -- -- -- --
Real Estate -- -- -- 2.3%
REITS -- -- -- 0.2%
Retail -- 1.8% 2.6% 2.0%
Savings & Loans -- -- -- --
Semiconductors -- 3.0% 23.8% 0.5%
Software -- 3.0% 17.9% 0.8%
Telecommunications -- 3.1% 14.2% 5.7%
Textiles -- -- -- 0.3%
Toys/Games/Hobbies -- -- -- 0.2%
Transportation -- -- -- 1.6%
Water -- -- -- 0.3%
SEE NOTES TO FINANCIAL STATEMENTS
123
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
The investment concentrations for the Balanced Fund and Strategic Income Fund as
a percentage of net assets, by industry, as of July 31, 2006, were as follows:
STRATEGIC
BALANCED INCOME
FUND FUND
--------- ---------
Aerospace/Defense 1.1% --
Agriculture 0.9% 1.2%
Auto Manufacturers 0.7% --
Auto Parts & Equipment 1.4% --
Automobile ABS 3.1% --
Banks 8.1% 16.0%
Beverages 1.2% 0.1%
Biotechnology 0.8% --
Cash Equivalents 7.8% 4.3%
Chemicals 0.9% --
Closed-end Funds -- 9.4%
Coal 0.7% --
Commercial MBS 9.4% --
Commercial Services 1.2% --
Computers 1.5% --
Cosmetics/Personal Care 2.3% 0.4%
Credit Card ABS -- 0.3%
Diversified Financial Services 1.8% 21.3%
Electric 2.6% 5.9%
Environmental Control 1.1% --
FHLMC Collateral -- 0.6%
FNMA Collateral 0.4% --
Food 3.4% 1.2%
Forest Products & Paper -- 1.0%
Hand/Machine Tools 0.9% --
Healthcare-Products 4.3% --
STRATEGIC
BALANCED INCOME
FUND FUND
--------- ---------
Healthcare-Services 1.6% --
Holding Companies-Diversified -- 0.7%
Insurance 2.8% 6.6%
Internet 0.7% --
Investment Companies 1.0% 5.7%
Leisure Time 0.8% --
Machinery-Construction & Mining 0.5% --
Machinery-Diversified 3.2% --
Media 1.2% 1.8%
Miscellaneous Manufacturing 1.3% 0.2%
Oil & Gas 2.6% 1.1%
Oil & Gas Services 2.6% --
Other ABS 0.6% --
Pharmaceuticals 2.9% --
Pipelines 0.2% 0.6%
Regional(state/province) -- 0.6%
REITS -- 13.5%
Retail 5.3% 0.6%
Savings & Loans -- 0.5%
Software 1.1% --
Sovereign 10.2% 4.6%
Telecommunications 3.1% 1.6%
TRAINS -- --
Transportation -- 0.3%
WL Collateral CMO 13.9% 3.9%
The investment concentrations for the Municipal Bond Funds as a percentage of
net assets, by industry, as of July 31, 2006, were as follows:
INTERMEDIATE OHIO MICHIGAN
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
FUND FUND FUND FUND
--------- ------------ --------- ---------
Airport 4.9% 7.4% -- 5.4%
Cash Equivalents 0.4% 0.1% 2.2% 0.1%
Development 2.7% 7.9% 3.0% 7.4%
Education 4.5% -- -- --
Facilities 2.5% 4.3% 2.2% 9.4%
General 2.5% 5.1% 5.2% 5.6%
General Obligation 14.7% 10.1% 17.5% 6.4%
Higher Education 15.5% 3.6% 23.7% 7.6%
Housing 2.5% 4.9% 3.4% 2.9%
Medical 7.0% 9.2% 17.5% 16.6%
Multifamily Housing -- 0.3% -- 0.7%
Pollution 0.6% 0.4% 5.6% 2.5%
Power -- 7.9% 11.6% 4.2%
School District 25.9% 10.9% 4.4% 12.7%
Single Family Housing 2.7% 5.6% 1.1% 3.6%
Student Loan 2.4% 7.2% -- 8.4%
Transportation 1.6% 11.4% 3.3% 1.8%
Utilities 5.7% 2.8% -- --
Water 5.1% 0.3% -- 5.4%
SEE NOTES TO FINANCIAL STATEMENTS
124
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
The investment concentrations for the Bond Funds as a percentage of net assets,
by industry, as of July 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 0.4% -- -- -- --
Agency Collateral CMO -- 1.7% 1.9% 1.1% 1.9%
Agency Collateral PAC CMO -- -- -- 3.2% --
Auto Manufacturers 0.9% 0.3% -- 0.5% --
Automobile ABS -- 6.1% 0.8% 7.4% --
Banks -- 5.3% 9.1% -- --
Building Materials 2.6% -- -- -- --
Cash Equivalents 7.8% 0.3% 4.6% 15.7% --
Chemicals 1.1% -- --^ -- --
Coal 3.3% -- -- -- --
Commercial MBS -- 16.3% 14.4% 8.8% --
Commercial Services 4.1% 0.7% 1.1% -- --
Computers 1.2% -- -- 1.1% --
Credit Card ABS -- -- 0.7% 0.3% --
Development -- -- -- 0.3% --
Diversified Financial Services 8.4% 8.0% 8.8% 6.6% --
Electric 6.9% 0.5% 2.0% 0.7% --
Electronics 2.3% -- -- -- --
Environmental Control 1.1% -- -- -- --
Food 3.7% 0.2% -- 0.7% --
Forest Products & paper 2.2% -- -- -- --
Gas -- -- 1.1% 1.2% --
Healthcare-Services 1.8% -- -- 1.2% --
Home Builders 4.7% -- -- -- --
Home Equity ABS -- -- 1.8% 1.1% --
Household Products/Wares 1.2% -- -- -- --
Insurance -- --^ 0.4% 0.6% --
Investment Companies 6.8% 3.0% 3.6% 2.2% 11.0%
Iron/Steel 2.4% -- -- -- --
Lodging 1.0% -- -- -- --
Machinery-Diversified 1.7% -- -- 0.8% --
Media 6.1% 1.2% 0.7% 0.6% --
Mining 1.6% -- 0.2% -- --
Miscellaneous Manufacturing 1.1% -- 0.2% -- --
Office/Business Equipment 1.1% -- -- -- --
Oil & Gas 8.4% 1.0% 1.9% 0.3% --
Oil & Gas Services 3.5% -- -- -- --
Other ABS -- 4.3% 4.7% 1.9% 6.5%
Packaging & Containers 2.2% -- -- -- --
Pharmaceuticals 1.2% -- -- -- --
Pipelines 1.7% 0.3% 0.4% 0.6% --
REITS -- 0.6% 0.9% 1.5% --
Retail 1.7% 0.5% -- -- --
Savings & Loans -- 1.5% -- -- --
Semiconductors 1.0% -- -- -- --
Sovereign -- 43.4% 10.5% 34.2% 84.0%
Telecommunications 5.7% 0.9% 0.3% 1.5% --
Transportation 2.5% --^ -- -- --
WL Collateral CMO 2.5% 21.6% 35.3% 21.0% --
SEE NOTES TO FINANCIAL STATEMENTS
125
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2006
(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 $ 159,847 $ 384,354 $ 846,978 $ 185,691
Net unrealized appreciation 27,744 62,511 51,547 16,888
--------- --------- --------- ---------
Investments, at value 187,591 446,865 898,525 202,579
Investment in affiliates, at value (cost $13,324, $30,458, $25,700, $4,974,
$12,851, $21, $8,994, $3,468, $9,515, $16,767, $--; respectively) 13,324 30,458 25,700 4,974
--------- --------- --------- ---------
Total Investments 200,915 477,323 924,225 207,553
Interest, dividends and other receivables 54 109 249 169
Receivable for investments sold 4,540 -- 77,048 --
Receivable for Fund shares sold 10 51 136 2
Receivable from Advisor and affiliates 1 2 4 6
Prepaid expenses and other assets 21 27 32 22
--------- --------- --------- ---------
Total Assets 205,541 477,512 1,001,694 207,752
--------- --------- --------- ---------
LIABILITIES:
Payable to Custodian -- -- -- --
Payable for investments purchased 4,395 10,659 97,421 --
Payable for securities loaned 53,720 105,117 152,650 19,054
Payable for Fund shares redeemed 227 405 1,002 25
Payable for variation margin on futures contracts -- -- -- 10
Accrued expenses and other payables:
Payable to Advisor and affiliates 92 258 540 116
Distribution and administrative services fees 6 14 40 5
Other 40 47 141 41
--------- --------- --------- ---------
Total Liabilities 58,480 116,500 251,794 19,251
--------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 89,045 236,364 710,629 203,355
Accumulated net investment income/(loss) (10) -- -- 87
Accumulated net realized gain/(loss) from investment
transactions, option contracts and futures 30,282 62,137 (12,276) (31,861)
Net unrealized appreciation on investments
and futures 27,744 62,511 51,547 16,920
--------- --------- --------- ---------
Net Assets $ 147,061 $ 361,012 $ 749,900 $ 188,501
========= ========= ========= =========
Market value of securities loaned $ 52,019 $ 101,984 $ 147,451 $ 18,381
========= ========= ========= =========
Net Assets:
Institutional Shares $ 126,809 $ 318,133 $ 616,737 $ 166,510
Class A Shares 17,783 34,437 114,828 20,923
Class B Shares 1,414 6,507 13,259 953
Class C Shares 384 1,122 3,199 112
Advisor Shares 671 813 1,877 3
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- ---------
Total $ 147,061 $ 361,012 $ 749,900 $ 188,501
========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 8,994 19,219 39,348 10,986
Class A Shares 1,303 2,130 7,478 1,399
Class B Shares 107 420 899 64
Class C Shares 29 75 223 8
Advisor Shares 49 51 124 -- ^
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- ---------
Total 10,482 21,895 48,072 12,457
========= ========= ========= =========
Net Asset Value+
Institutional Shares $ 14.10 $ 16.55 $ 15.67 $ 15.16
========= ========= ========= =========
Class A Shares-redemption price per share $ 13.65 $ 16.17 $ 15.36 $ 14.96
========= ========= ========= =========
Class B Shares-offering price per share* $ 13.21 $ 15.50 $ 14.74 $ 14.98
========= ========= ========= =========
Class C Shares-offering price per share* $ 13.23 $ 14.94 $ 14.36 $ 14.98
========= ========= ========= =========
Advisor Shares-redemption price per share $ 13.65 $ 16.00 $ 15.19 $ 15.16
========= ========= ========= =========
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 $ 14.37 $ 17.02 $ 16.17 $ 15.75
========= ========= ========= =========
Advisor Shares $ 14.11 $ 16.54 $ 15.70 $ 15.67
========= ========= ========= =========
EQUITY MICRO CAP SMALL CAP
INDEX BALANCED VALUE VALUE
FUND FUND FUND FUND
--------- --------- --------- ---------
ASSETS:
Investments, at cost $ 215,565 $ 90,862 $ 117,614 $ 143,338
Net unrealized appreciation 218,457 733 14,893 5,547
--------- --------- --------- ---------
Investments, at value 434,022 91,595 132,507 148,885
Investment in affiliates, at value (cost $13,324, $30,458, $25,700, $4,974,
$12,851, $21, $8,994, $3,468, $9,515, $16,767, $--; respectively) 12,851 21 8,994 3,468
--------- --------- --------- ---------
Total Investments 446,873 91,616 141,501 152,353
Interest, dividends and other receivables 423 208 54 59
Receivable for investments sold 97 1,600 3,292 1,917
Receivable for Fund shares sold 402 3 45 14
Receivable from Advisor and affiliates 12 3 2 2
Prepaid expenses and other assets 22 24 24 17
--------- --------- --------- ---------
Total Assets 447,829 93,454 144,918 154,362
--------- --------- --------- ---------
LIABILITIES:
Payable to Custodian -- 421 1,208 --
Payable for investments purchased -- 3,629 829 1,213
Payable for securities loaned 38,883 6,463 23,113 30,712
Payable for Fund shares redeemed 1,090 489 367 137
Payable for variation margin on futures contracts 26 -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 42 47 107 97
Distribution and administrative services fees 44 16 21 3
Other 73 35 43 18
--------- --------- --------- ---------
Total Liabilities 40,158 11,100 25,688 32,180
--------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 231,055 125,708 80,052 101,468
Accumulated net investment income/(loss) 434 134 -- 200
Accumulated net realized gain/(loss) from investment
transactions, option contracts and futures (42,474) (44,221) 24,285 14,967
Net unrealized appreciation on investments
and futures 218,656 733 14,893 5,547
--------- --------- --------- ---------
Net Assets $ 407,671 $ 82,354 $ 119,230 $ 122,182
========= ========= ========= =========
Market value of securities loaned $ 37,422 $ 6,294 $ 22,325 $ 29,742
========= ========= ========= =========
Net Assets:
Institutional Shares $ 184,177 $ 35,740 72,981 $ 116,503
Class A Shares 65,204 37,286 17,759 2,434
Class B Shares 4,229 7,536 6,032 1,221
Class C Shares 1,998 1,669 5,161 839
Advisor Shares 1,819 123 17,297 1,185
Select Shares 17,558 NA NA NA
Preferred Shares 64,939 NA NA NA
Trust Shares 67,747 NA NA NA
--------- --------- --------- ---------
Total $ 407,671 $ 82,354 119,230 $ 122,182
========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 7,599 2,895 9,071 5,578
Class A Shares 2,699 3,037 2,278 117
Class B Shares 176 621 803 61
Class C Shares 83 138 687 42
Advisor Shares 75 10 2,243 58
Select Shares 725 NA NA NA
Preferred Shares 2,680 NA NA NA
Trust Shares 2,796 NA NA NA
--------- --------- --------- ---------
Total 16,833 6,701 15,082 5,856
========= ========= ========= =========
Net Asset Value+
Institutional Shares $ 24.24 $ 12.35 $ 8.05 $ 20.89
========= ========= ========= =========
Class A Shares-redemption price per share $ 24.16 $ 12.28 $ 7.80 $ 20.74
========= ========= ========= =========
Class B Shares-offering price per share* $ 24.01 $ 12.13 $ 7.52 $ 20.18
========= ========= ========= =========
Class C Shares-offering price per share* $ 24.03 $ 12.11 $ 7.52 $ 20.14
========= ========= ========= =========
Advisor Shares-redemption price per share $ 24.13 $ 12.25 $ 7.71 $ 20.56
========= ========= ========= =========
Select Shares $ 24.23 NA NA NA
========= ========= ========= =========
Preferred Shares $ 24.23 NA NA NA
========= ========= ========= =========
Trust Shares $ 24.23 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 $ 25.43 $ 12.93 $ 8.21 $ 21.83
========= ========= ========= =========
Advisor Shares $ 24.94 $ 12.66 $ 7.97 $ 21.25
========= ========= ========= =========
DISCIPLINED
MULTI CAP LARGE CAP LIFEMODEL
VALUE VALUE AGGRESSIVE
FUND FUND FUND SM
--------- ----------- ----------
ASSETS:
Investments, at cost $ 299,507 $ 578,549 $ 149,485
Net unrealized appreciation 70,866 93,021 24,125
--------- --------- ---------
Investments, at value 370,373 671,570 173,610
Investment in affiliates, at value (cost $13,324, $30,458, $25,700, $4,974,
$12,851, $21, $8,994, $3,468, $9,515, $16,767, $--; respectively) 9,515 16,767 --
--------- --------- ---------
Total Investments 379,888 688,337 173,610 #
Interest, dividends and other receivables 435 972 57
Receivable for investments sold 7,748 22,731 --
Receivable for Fund shares sold 120 689 129
Receivable from Advisor and affiliates 4 4 10
Prepaid expenses and other assets 25 31 22
--------- --------- ---------
Total Assets 388,220 712,764 173,828
--------- --------- ---------
LIABILITIES:
Payable to Custodian -- -- --
Payable for investments purchased 11,174 22,719 --
Payable for securities loaned 52,482 76,631 --
Payable for Fund shares redeemed 283 267 1,610
Payable for variation margin on futures contracts -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 281 427 10
Distribution and administrative services fees 44 12 27
Other 58 75 28
--------- --------- ---------
Total Liabilities 64,322 100,131 1,675
--------- --------- ---------
NET ASSETS:
Paid-in Capital 203,379 449,196 143,301
Accumulated net investment income/(loss) 255 711 23
Accumulated net realized gain/(loss) from investment
transactions, option contracts and futures 49,398 69,705 4,704
Net unrealized appreciation on investments
and futures 70,866 93,021 24,125
--------- --------- ---------
Net Assets $ 323,898 $ 612,633 $ 172,153
========= ========= =========
Market value of securities loaned $ 50,691 $ 73,157 $ --
========= ========= =========
Net Assets:
Institutional Shares $ 226,189 $ 581,507 $ 101,365
Class A Shares 38,714 22,968 50,416
Class B Shares 21,679 5,783 16,926
Class C Shares 4,455 2,227 2,661
Advisor Shares 32,861 148 785
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
--------- --------- ---------
Total $ 323,898 $ 612,633 $ 172,153
========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 8,807 39,502 6,951
Class A Shares 1,525 1,564 3,469
Class B Shares 881 390 1,188
Class C Shares 181 153 187
Advisor Shares 1,301 10 54
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
--------- --------- ---------
Total 12,695 41,619 11,849
========= ========= =========
Net Asset Value+
Institutional Shares $ 25.68 $ 14.72 $ 14.58
========= ========= =========
Class A Shares-redemption price per share $ 25.39 $ 14.69 $ 14.53
========= ========= =========
Class B Shares-offering price per share* $ 24.61 $ 14.81 $ 14.24
========= ========= =========
Class C Shares-offering price per share* $ 24.59 $ 14.56 $ 14.24
========= ========= =========
Advisor Shares-redemption price per share $ 25.26 $ 14.66 $ 14.54
========= ========= =========
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 $ 26.73 $ 15.46 $ 15.29
========= ========= =========
Advisor Shares $ 26.11 $ 15.15 $ 15.03
========= ========= =========
_________________
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred shares.
# Represents investments in affiliates.
+ Per share amounts may not recalculate due to rounding of net assets and/or
shares outstanding.
SEE NOTES TO FINANCIAL STATEMENTS
126-127 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2006
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL
MODERATELY LIFEMODEL MODERATELY LIFEMODEL STRATEGIC
AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE INCOME
FUND SM FUND SM FUND SM FUND SM FUND
---------- --------- ------------ ------------ ---------
ASSETS:
Investments, at cost $ 288,443 $ 490,176 $ 97,364 $ 54,123 $ 149,126
Net unrealized appreciation/(depreciation) 40,100 30,516 7,518 652 2,801
--------- --------- --------- --------- ---------
Investments, at value 328,543 520,692 104,882 54,775 151,927
Investment in affiliates, at value (cost $--, $--, $--, $--,
$8,338, $774, $1,591, $--, $4,506, $7,933, $16,949,
$5,857; respectively) -- -- -- -- 8,338
--------- --------- --------- --------- ---------
Total Investments 328,543 # 520,692 # 104,882 # 54,775 # 160,265
Cash -- -- -- -- --
Foreign currency, at value (cost $--, $--, $--, $--, $--,
$--, $--, $8,417, $--, $--, $-- and $--; respectively) -- -- -- -- --
Interest, dividends and other receivables 87 99 25 11 885
Receivable for investments sold -- -- -- -- --
Receivable for Fund shares sold 113 299 40 15 209
Receivable for forward foreign currency contracts -- -- -- -- --
Reclaims receivable -- -- -- -- --
Receivable from Advisor and affiliates 18 24 7 5 2
Prepaid expenses and other assets 24 24 20 20 25
--------- --------- --------- --------- ---------
Total Assets 328,785 521,138 104,974 54,826 161,386
--------- --------- --------- --------- ---------
LIABILITIES:
Payable to Custodian -- -- -- -- --
Distributions payable -- -- -- -- 410
Payable for investments purchased -- -- -- -- --
Payable for securities loaned -- -- -- -- 6,581
Payable for Fund shares redeemed 1,561 332 1,151 204 163
Payable for forward foreign currency contracts -- -- -- -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 18 29 6 3 133
Distribution and administrative services fees 80 64 28 15 28
Other 59 71 19 12 25
--------- --------- --------- --------- ---------
Total Liabilities 1,718 496 1,204 234 7,340
--------- --------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 278,869 478,580 93,838 53,018 149,903
Accumulated net investment income/(loss) 323 939 218 156 (100)
Accumulated net realized gain/(loss) from investment
transactions, options contracts, futures and
foreign currency 7,775 10,607 2,196 766 1,442
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency 40,100 30,516 7,518 652 2,801
--------- --------- --------- --------- ---------
Net Assets $ 327,067 $ 520,642 $ 103,770 $ 54,592 $ 154,046
========= ========= ========= ========= =========
Market value of securities loaned $ -- $ -- $ -- $ -- $ 6,360
========= ========= ========= ========= =========
Net Assets:
Institutional Shares $ 135,542 $ 369,903 $ 42,683 $ 24,385 $ 107,130
Class A Shares 128,564 100,588 37,479 16,138 4,429
Class B Shares 53,395 43,234 20,488 10,208 1,588
Class C Shares 8,196 6,495 3,058 3,816 20,019
Advisor Shares 1,370 422 62 45 20,880
--------- --------- --------- --------- ---------
Total $ 327,067 $ 520,642 $ 103,770 $ 54,592 $ 154,046
========= ========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 9,694 29,770 3,756 2,276 9,500
Class A Shares 9,211 8,106 3,304 1,509 394
Class B Shares 3,843 3,502 1,812 957 141
Class C Shares 590 526 270 358 1,792
Advisor Shares 98 34 5 4 1,857
--------- --------- --------- --------- ---------
Total 23,436 41,938 9,147 5,104 13,684
========= ========= ========= ========= =========
Net Asset Value+
Institutional Shares $ 13.98 $ 12.43 $ 11.36 $ 10.72 $ 11.28
========= ========= ========= ========= =========
Class A Shares-redemption price per share $ 13.96 $ 12.41 $ 11.35 $ 10.70 $ 11.25
========= ========= ========= ========= =========
Class B Shares-offering price per share* $ 13.90 $ 12.35 $ 11.30 $ 10.67 $ 11.25
========= ========= ========= ========= =========
Class C Shares-offering price per share* $ 13.89 $ 12.36 $ 11.32 $ 10.67 $ 11.17
========= ========= ========= ========= =========
Advisor Shares-redemption price per share $ 13.95 $ 12.39 $ 11.33 $ 10.69 $ 11.24
========= ========= ========= ========= =========
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 5.00% 5.00%
Advisor Shares 3.25% 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 $ 14.69 $ 13.06 $ 11.95 $ 11.26 $ 11.84
========= ========= ========= ========= =========
Advisor Shares $ 14.42 $ 12.81 $ 11.71 $ 11.05 $ 11.62
========= ========= ========= ========= =========
DIVIDEND INTERNATIONAL HIGH YIELD
GROWTH TECHNOLOGY EQUITY BOND BOND
FUND (A) FUND FUND FUND FUND
--------- ---------- ----------- --------- ---------
ASSETS:
Investments, at cost $ 20,665 $ 71,662 $ 426,676 $ 67,856 $ 310,298
Net unrealized appreciation/(depreciation) 1,092 (790) 65,877 (2,004) (3,978)
--------- --------- --------- --------- ---------
Investments, at value 21,757 70,872 492,553 65,852 306,320
Investment in affiliates, at value (cost $--, $--, $--, $--,
$8,338, $774, $1,591, $--, $4,506, $7,933, $16,949,
$5,857; respectively) 774 1,591 -- 4,506 7,933
--------- --------- --------- --------- ---------
Total Investments 22,531 72,463 492,553 70,358 314,253
Cash -- -- 1,811 -- --
Foreign currency, at value (cost $--, $--, $--, $--, $--,
$--, $--, $8,417, $--, $--, $-- and $--; respectively) -- -- 8,543 -- --
Interest, dividends and other receivables 8 2 444 1,323 1,333
Receivable for investments sold -- 11,234 3,666 -- 7,823
Receivable for Fund shares sold 8 36 281 10 54
Receivable for forward foreign currency contracts -- -- 1,851 -- --
Reclaims receivable -- -- 111 -- --
Receivable from Advisor and affiliates 4 -- 2 4 3
Prepaid expenses and other assets 27 24 31 10 26
--------- --------- --------- --------- ---------
Total Assets 22,578 83,759 509,293 71,705 323,492
--------- --------- --------- --------- ---------
LIABILITIES:
Payable to Custodian -- -- -- 32 --
Distributions payable -- -- -- -- --
Payable for investments purchased 463 11,621 3,343 -- 55,370
Payable for securities loaned 862 16,640 28,616 5,202 745
Payable for Fund shares redeemed 24 221 167 2 181
Payable for forward foreign currency contracts -- -- 1,533 -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 11 49 407 40 119
Distribution and administrative services fees 2 3 13 -- ^ 5
Other 14 13 87 8 40
--------- --------- --------- --------- ---------
Total Liabilities 1,376 28,547 34,166 5,284 56,460
--------- --------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 35,180 101,819 427,115 68,189 275,493
Accumulated net investment income/(loss) -- -- 1,428 22 27
Accumulated net realized gain/(loss) from investment
transactions, options contracts, futures and
foreign currency (15,070) (45,817) (20,210) 214 (4,510)
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency 1,092 (790) 66,794 (2,004) (3,978)
--------- --------- --------- --------- ---------
Net Assets $ 21,202 $ 55,212 $ 475,127 $ 66,421 $ 267,032
========= ========= ========= ========= =========
Market value of securities loaned $ 827 $ 16,119 $ 27,576 $ 5,039 $ 723
========= ========= ========= ========= =========
Net Assets:
Institutional Shares $ 15,759 $ 47,523 $ 434,572 $ 66,033 $ 252,145
Class A Shares 4,670 4,048 27,725 227 11,657
Class B Shares 371 935 2,060 96 2,655
Class C Shares 389 787 1,139 55 315
Advisor Shares 13 1,919 9,631 10 260
--------- --------- --------- --------- ---------
Total $ 21,202 $ 55,212 $ 475,127 $ 66,421 $ 267,032
========= ========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 698 4,722 33,883 6,779 26,035
Class A Shares 211 408 2,159 23 1,204
Class B Shares 17 99 163 10 274
Class C Shares 19 83 93 6 33
Advisor Shares 1 196 750 1 27
--------- --------- --------- --------- ---------
Total 946 5,508 37,048 6,819 27,573
========= ========= ========= ========= =========
Net Asset Value+
Institutional Shares $ 22.56 $ 10.06 $ 12.83 $ 9.74 $ 9.68
========= ========= ========= ========= =========
Class A Shares-redemption price per share $ 22.18 $ 9.91 $ 12.84 $ 9.74 $ 9.68
========= ========= ========= ========= =========
Class B Shares-offering price per share* $ 21.53 $ 9.49 $ 12.64 $ 9.73 $ 9.68
========= ========= ========= ========= =========
Class C Shares-offering price per share* $ 20.97 $ 9.46 $ 12.31 $ 9.74 $ 9.69
========= ========= ========= ========= =========
Advisor Shares-redemption price per share $ 22.11 $ 9.79 $ 12.83 $ 9.74 $ 9.68
========= ========= ========= ========= =========
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 4.75% 4.75%
Advisor Shares 3.25% 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 $ 23.35 $ 10.43 $ 13.52 $ 10.23 $ 10.16
========= ========= ========= ========= =========
Advisor Shares $ 22.85 $ 10.12 $ 13.26 $ 10.07 $ 10.01
========= ========= ========= ========= =========
INTERMEDIATE SHORT TERM
BOND BOND
FUND FUND
--------- ---------
ASSETS:
Investments, at cost $ 481,129 $ 310,718
Net unrealized appreciation/(depreciation) (6,038) (4,647)
--------- ---------
Investments, at value 475,091 306,071
Investment in affiliates, at value (cost $--, $--, $--, $--,
$8,338, $774, $1,591, $--, $4,506, $7,933, $16,949,
$5,857; respectively) 16,949 5,857
--------- ---------
Total Investments 492,040 311,928
Cash -- --
Foreign currency, at value (cost $--, $--, $--, $--, $--,
$--, $--, $8,417, $--, $--, $-- and $--; respectively) -- --
Interest, dividends and other receivables 4,009 1,879
Receivable for investments sold 9,965 --
Receivable for Fund shares sold 54 52
Receivable for forward foreign currency contracts -- --
Reclaims receivable -- --
Receivable from Advisor and affiliates 8 2
Prepaid expenses and other assets 28 26
--------- ---------
Total Assets 506,104 313,887
--------- ---------
LIABILITIES:
Payable to Custodian -- --
Distributions payable -- --
Payable for investments purchased 16,800 --
Payable for securities loaned 21,265 42,583
Payable for Fund shares redeemed 723 168
Payable for forward foreign currency contracts -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 211 100
Distribution and administrative services fees 6 3
Other 76 40
--------- ---------
Total Liabilities 39,081 42,894
--------- ---------
NET ASSETS:
Paid-in Capital 512,799 298,569
Accumulated net investment income/(loss) 69 15
Accumulated net realized gain/(loss) from investment
transactions, options contracts, futures and
foreign currency (39,807) (22,944)
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency (6,038) (4,647)
--------- ---------
Net Assets $ 467,023 $ 270,993
========= =========
Market value of securities loaned $ 20,603 $ 41,152
========= =========
Net Assets:
Institutional Shares $ 440,962 $ 258,423
Class A Shares 23,075 12,362
Class B Shares 2,232 NA
Class C Shares 741 205
Advisor Shares 13 3
--------- ---------
Total $ 467,023 $ 270,993
========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 46,352 27,928
Class A Shares 2,419 1,338
Class B Shares 235 NA
Class C Shares 78 22
Advisor Shares 1 -- ^
--------- ---------
Total 49,085 29,288
========= =========
Net Asset Value+
Institutional Shares $ 9.51 $ 9.25
========= =========
Class A Shares-redemption price per share $ 9.54 $ 9.25
========= =========
Class B Shares-offering price per share* $ 9.49 NA
========= =========
Class C Shares-offering price per share* $ 9.51 $ 9.25
========= =========
Advisor Shares-redemption price per share $ 9.51 $ 9.24
========= =========
Maximum Sales Charge
Class A Shares 3.50% 3.50%
Advisor Shares 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 $ 9.89 $ 9.59
========= =========
Advisor Shares $ 9.70 $ 9.43
========= =========
___________________
(a) Formerly the Select Stock Fund.
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred shares.
# Represents investments in affiliates.
+ Per share amounts may not recalculate due to rounding of net assets and/or
shares outstanding.
SEE NOTES TO FINANCIAL STATEMENTS
128-129 Spread
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2006
(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 $ 51,707 $ 41,649 $ 164,040 $ 112,932 $ 57,108
Net unrealized appreciation/(depreciation) (1,358) 1,040 2,543 1,302 (504)
--------- --------- --------- --------- ---------
Investments, at value 50,349 42,689 166,583 114,234 56,604
Investment in affiliates (cost $5,997, $--, $--, $--,
$--; respectively) 5,997 -- -- -- --
--------- --------- --------- --------- ---------
Total Investments 56,346 42,689 166,583 114,234 56,604
Interest, dividends and other receivables 384 574 1,737 1,128 650
Receivable for investments sold -- -- 5 -- --
Receivable for Fund shares sold 3 10 30 -- 18
Receivable from Advisor and affiliates 2 3 2 1 3
Prepaid expenses and other assets 21 14 25 26 21
--------- --------- --------- --------- ---------
Total Assets 56,756 43,290 168,382 115,389 57,296
--------- --------- --------- --------- ---------
LIABILITIES:
Payable to Custodian 45 -- -- -- --
Payable for investments purchased 2,170 1,056 528 1,605 1,056
Payable for Fund shares redeemed 29 40 129 309 -- ^
Accrued expenses and other payables:
Payable to Advisor and affiliates 20 16 62 56 24
Distribution and administrative services fees 6 1 1 9 1
Other 9 8 28 16 11
--------- --------- --------- --------- ---------
Total Liabilities 2,279 1,121 748 1,995 1,092
--------- --------- --------- --------- ---------
NET ASSETS:
Paid-in Capital 55,703 40,820 165,116 112,034 56,991
Accumulated net investment income 154 12 15 6 2
Accumulated net realized gain/(loss) from
investment transactions (22) 297 (40) 52 (285)
Net unrealized appreciation/(depreciation) on
investments (1,358) 1,040 2,543 1,302 (504)
--------- --------- --------- --------- ---------
Net Assets $ 54,477 $ 42,169 $ 167,634 $ 113,394 $ 56,204
========= ========= ========= ========= =========
Net Assets:
Institutional Shares $ 29,005 $ 39,514 $ 164,537 $ 85,716 $ 50,670
Class A Shares 23,702 1,378 2,559 23,032 4,728
Class B Shares NA 1,016 446 3,426 607
Class C Shares 1,767 87 89 1,217 196
Advisor Shares 3 174 3 3 3
--------- --------- --------- --------- ---------
Total $ 54,477 $ 42,169 $ 167,634 $ 113,394 $ 56,204
========= ========= ========= ========= =========
Shares of Beneficial Interest Outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 2,932 4,201 16,463 8,572 5,126
Class A Shares 2,393 146 256 2,302 479
Class B Shares NA 108 45 350 61
Class C Shares 180 9 9 122 20
Advisor Shares -- ^ 18 -- ^ -- ^ -- ^
--------- --------- --------- --------- ---------
Total 5,505 4,482 16,773 11,346 5,686
========= ========= ========= ========= =========
Net Asset Value+
Institutional Shares $ 9.89 $ 9.40 $ 9.99 $ 10.00 $ 9.88
========= ========= ========= ========= =========
Class A Shares-redemption price per share $ 9.90 $ 9.45 $ 10.00 $ 10.01 $ 9.87
========= ========= ========= ========= =========
Class B Shares-offering price per share* NA $ 9.37 $ 9.98 $ 9.78 $ 9.88
========= ========= ========= ========= =========
Class C Shares-offering price per share* $ 9.82 $ 9.39 $ 9.99 $ 9.97 $ 9.88
========= ========= ========= ========= =========
Advisor Shares-redemption price per share $ 9.90 $ 9.40 $ 10.00 $ 9.99 $ 9.88
========= ========= ========= ========= =========
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 $ 10.39 $ 9.92 $ 10.36 $ 10.51 $ 10.36
========= ========= ========= ========= =========
Advisor Shares $ 10.23 $ 9.72 $ 10.20 $ 10.33 $ 10.21
========= ========= ========= ========= =========
__________________
* Redemption price per share varies by length of time shares are held.
^ Represents fewer than five hundred shares.
+ Per share amounts may not recalculate due to rounding of net assets and/or
shares outstanding.
SEE NOTES TO FINANCIAL STATEMENTS
130
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2006
(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 $ 397 $ 3,245 $ 7,377 $ 3,791 $ 8,020
Income from securities lending 96 82 145 18 58
--------- --------- --------- --------- ---------
Total Investment Income 493 3,327 7,522 3,809 8,078
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 1,268 3,179 6,697 1,324 1,243
Administrative fees 327 705 1,473 341 762
Distribution services fees-Class A Shares 52 99 354 56 172
Distribution services fees-Class B Shares 17 69 159 10 44
Distribution services fees-Class C Shares 4 11 31 1 17
Distribution services fees-Advisor Shares 4 5 13 -- ^ 8
Administrative services fees-Class C Shares 1 4 10 -- ^ 6
Administrative services fees-Select Shares NA NA NA NA 14
Administrative services fees-Preferred Shares NA NA NA NA 109
Administrative services fees-Trust Shares NA NA NA NA 180
Accounting fees 80 122 192 86 162
Registration and filing fees 27 35 44 25 36
Transfer and dividend disbursing agent fees 72 138 330 72 136
Custody fees 21 22 36 22 33
Trustees' fees and expenses 7 16 31 8 15
Other expenses 61 92 250 61 125
--------- --------- --------- --------- ---------
Total expenses 1,941 4,497 9,620 2,006 3,062
--------- --------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (22) (6) (37) (199) (1,706)
Transfer and dividend disbursing agent fees waived -- (12) (12) -- (21)
--------- --------- --------- --------- ---------
Net Expenses 1,919 4,479 9,571 1,807 1,335
--------- --------- --------- --------- ---------
Net Investment Income/(Loss) (1,426) (1,152) (2,049) 2,002 6,743
--------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES)
FROM INVESTMENTS AND FUTURES:
Net realized gains on investment transactions 39,940 88,879 95,193 10,681 15,100
Net realized gains/(losses) on futures transactions 257 -- -- (163) 222
Change in unrealized appreciation/depreciation on
investments and futures (34,296) (70,388) (123,423) (1,203) (1,847)
--------- --------- --------- --------- ---------
Net realized and unrealized gains/(losses) on investments
and futures 5,901 18,491 (28,230) 9,315 13,475
--------- --------- --------- --------- ---------
Change in net assets resulting from operations $ 4,475 $ 17,339 $ (30,279) $ 11,317 $ 20,218
========= ========= ========= ========= =========
_________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
131
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
MICRO CAP SMALL CAP MULTI CAP
BALANCED VALUE VALUE VALUE
FUND FUND FUND FUND
--------- --------- --------- ---------
INVESTMENT INCOME:
Interest income $ 1,885 $ -- $ -- $ --
Dividend income 1,177 2,201 2,114 7,768
Income from securities lending 9 70 47 56
--------- --------- --------- ---------
Total Investment Income 3,071 2,271 2,161 7,824
--------- --------- --------- ---------
EXPENSES:
Investment advisory fees 868 1,429 1,222 3,389
Administrative fees 199 261 247 603
Distribution services fees-Class A Shares 121 51 7 98
Distribution services fees-Class B Shares 92 70 12 222
Distribution services fees-Class C Shares 23 43 7 34
Distribution services fees-Advisor Shares 1 114 7 183
Administrative services fees-Class C Shares 8 14 2 11
Accounting fees 82 76 72 112
Registration and filing fees 35 34 18 25
Transfer and dividend disbursing agent fees 79 96 50 163
Custody fees 20 40 21 21
Trustees' fees and expenses 4 6 5 14
Other expenses 37 51 43 109
--------- --------- --------- ---------
Total expenses 1,569 2,285 1,713 4,984
--------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (270) (34) (40) (50)
Transfer and dividend disbursing agent fees waived -- -- -- (12)
--------- --------- --------- ---------
Net Expenses 1,299 2,251 1,673 4,922
--------- --------- --------- ---------
Net Investment Income 1,772 20 488 2,902
--------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND OPTIONS:
Net realized gains/(losses) on investment and option transactions 8,157 41,836 20,068 67,055
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on investments and options (11,421) (39,004) (18,289) (43,868)
--------- --------- --------- ---------
Net realized and unrealized gains/(losses) on investments and options (3,264) 2,832 1,779 23,187
--------- --------- --------- ---------
Change in net assets resulting from operations $ (1,492) $ 2,852 $ 2,267 $ 26,089
========= ========= ========= =========
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 14,908 2,284 # 6,866 # 13,513 #
Income from securities lending 75 -- -- --
--------- --------- --------- ---------
Total Investment Income 14,983 2,284 6,866 13,513
--------- --------- --------- ---------
EXPENSES:
Investment advisory fees 4,849 233 472 728
Administrative fees 1,070 282 561 860
Distribution services fees-Class A Shares 60 123 319 261
Distribution services fees-Class B Shares 57 166 520 441
Distribution services fees-Class C Shares 17 18 66 55
Distribution services fees-Advisor Shares 1 1 3 1
Administrative services fees-Class C Shares 6 6 22 18
Accounting fees 159 73 105 140
Registration and filing fees 41 18 21 20
Transfer and dividend disbursing agent fees 169 85 171 174
Custody fees 27 15 21 26
Trustees' fees and expenses 24 6 13 20
Other expenses 187 48 96 154
--------- --------- --------- ---------
Total expenses 6,667 1,074 2,390 2,898
--------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (35) (636) (1,196) (1,721)
Transfer and dividend disbursing agent fees waived (12) -- (12) (12)
--------- --------- --------- ---------
Net Expenses 6,620 438 1,182 1,165
--------- --------- --------- ---------
Net Investment Income 8,363 1,846 5,684 12,348
--------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND OPTIONS:
Net realized gains/(losses) on investment and option transactions 88,966 (82)+ 12 + 703 +
Realized gain distributions from underlying funds -- 5,088 8,409 10,525
Change in unrealized appreciation/depreciation on investments and options (44,459) (259) (1,747) (6,444)
--------- --------- --------- ---------
Net realized and unrealized gains/(losses) on investments and options 44,507 4,747 6,674 4,784
--------- --------- --------- ---------
Change in net assets resulting from operations $ 52,870 $ 6,593 $ 12,358 $ 17,132
========= ========= ========= =========
LIFEMODEL
MODERATELY LIFEMODEL STRATEGIC
CONSERVATIVE CONSERVATIVE INCOME
FUND SM (A) FUND SM (A) FUND
------------ ------------ ---------
INVESTMENT INCOME:
Interest income $ -- $ -- $ 2,411
Dividend income 3,273 # 2,165 # 6,844
Income from securities lending -- -- 20
--------- --------- ---------
Total Investment Income 3,273 2,165 9,275
--------- --------- ---------
EXPENSES:
Investment advisory fees 157 86 1,581
Administrative fees 193 110 285
Distribution services fees-Class A Shares 98 45 13
Distribution services fees-Class B Shares 219 113 19
Distribution services fees-Class C Shares 27 32 179
Distribution services fees-Advisor Shares -- ^ -- ^ 131
Administrative services fees-Class C Shares 9 11 60
Accounting fees 70 70 75
Registration and filing fees 16 16 27
Transfer and dividend disbursing agent fees 55 36 81
Custody fees 13 10 11
Trustees' fees and expenses 4 2 6
Other expenses 35 20 48
--------- --------- ---------
Total expenses 896 551 2,516
--------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (459) (304) (36)
Transfer and dividend disbursing agent fees waived -- -- --
--------- --------- ---------
Net Expenses 437 247 2,480
--------- --------- ---------
Net Investment Income 2,836 1,918 6,795
--------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND OPTIONS:
Net realized gains/(losses) on investment and option transactions 1,257 + 503 + 1,927
Realized gain distributions from underlying funds 1,770 631 --
Change in unrealized appreciation/depreciation on investments and options (2,737) (1,657) (5,228)
--------- --------- ---------
Net realized and unrealized gains/(losses) on investments and options 290 (523) (3,301)
--------- --------- ---------
Change in net assets resulting from operations $ 3,126 $ 1,395 $ 3,494
========= ========= =========
_________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
# Represents income from affiliates.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
132-133 Spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2006
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DIVIDEND
GROWTH INTERNATIONAL HIGH YIELD
FUND TECHNOLOGY EQUITY BOND BOND
(A) (B) FUND FUND FUND (C) FUND
--------- ---------- ------------- ---------- ---------
INVESTMENT INCOME:
Interest income $ -- $ -- $ 28 $ 2,592 $ 13,781
Dividend income 401 112 11,537 97 316
Foreign tax withholding -- -- (810) -- --
Income from securities lending 1 36 364 -- ^ 33
--------- --------- --------- --------- ---------
Total Investment Income 402 148 11,119 2,689 14,130
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 160 544 4,284 249 1,709
Administrative fees 45 104 760 69 508
Distribution services fees-Class A Shares 14 13 64 -- ^ 34
Distribution services fees-Class B Shares 3 11 17 -- ^ 31
Distribution services fees-Class C Shares 3 5 9 -- ^ 3
Distribution services fees-Advisor Shares -- ^ 4 54 -- ^ 2
Administrative services fees-Class C Shares 1 2 3 -- ^ 1
Accounting fees 71 69 259 52 119
Registration and filing fees 36 34 41 11 34
Transfer and dividend disbursing agent fees 32 37 128 16 88
Custody fees 14 14 277 5 28
Trustees' fees and expenses 1 2 17 2 11
Other expenses 187 16 136 13 92
--------- --------- --------- --------- ---------
Total expenses 567 855 6,049 417 2,660
--------- --------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (398) -- (101) (151) (480)
Transfer and dividend disbursing agent fees waived -- -- (12) -- (12)
Distribution services-Class A Shares and
Class B Shares waived -- -- -- -- --
--------- --------- --------- --------- ---------
Net Expenses 169 855 5,936 266 2,168
--------- --------- --------- --------- ---------
Net Investment Income/(Loss) 233 (707) 5,183 2,423 11,962
--------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, OPTIONS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment, option
and foreign currency transactions 2,473 2,359 16,142 230 (2,853)
Net realized gains on futures transactions -- -- 3,059 -- --
Change in unrealized appreciation/depreciation on
investments, options, futures and foreign currency (1,483) (3,384) 64,678 (2,004) (5,788)
--------- --------- --------- --------- ---------
Net realized and unrealized gains/(losses) on
investments, options, futures and foreign currency 990 (1,025) 83,879 (1,774) (8,641)
--------- --------- --------- --------- ---------
Change in net assets resulting from operations $ 1,223 $ (1,732) $ 89,062 $ 649 $ 3,321
========= ========= ========= ========= =========
U.S. INTERMEDIATE
INTERMEDIATE SHORT TERM GOVERNMENT MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND
FUND (A) FUND (A) FUND (A) FUND FUND (A)
------------ ---------- ---------- --------- ------------
INVESTMENT INCOME:
Interest income $ 26,246 $ 11,646 $ 2,588 $ 2,124 $ 7,942
Dividend income 494 309 124 18 38
Foreign tax withholding -- -- -- -- --
Income from securities lending 28 32 -- -- --
--------- --------- --------- --------- ---------
Total Investment Income 26,768 11,987 2,712 2,142 7,980
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 2,866 1,502 324 261 1,035
Administrative fees 921 525 103 92 339
Distribution services fees-Class A Shares 67 36 64 4 7
Distribution services fees-Class B Shares 27 NA NA 13 8
Distribution services fees-Class C Shares 7 2 17 1 1
Distribution services fees-Advisor Shares -- ^ -- ^ -- ^ 1 -- ^
Administrative services fees-Class C Shares 2 1 6 -- ^ -- ^
Accounting fees 170 103 67 77 99
Registration and filing fees 33 28 28 20 30
Transfer and dividend disbursing agent fees 140 83 27 24 54
Custody fees 35 18 8 10 20
Trustees' fees and expenses 20 11 2 2 7
Other expenses 158 91 19 17 61
--------- --------- --------- --------- ---------
Total expenses 4,446 2,400 665 522 1,661
--------- --------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (600) (354) (150) (192) (308)
Transfer and dividend disbursing agent fees waived (12) (9) -- -- --
Distribution services-Class A Shares and
Class B Shares waived (20) -- -- -- (6)
--------- --------- --------- --------- ---------
Net Expenses 3,814 2,037 515 330 1,347
--------- --------- --------- --------- ---------
Net Investment Income/(Loss) 22,954 9,950 2,197 1,812 6,633
--------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, OPTIONS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment, option
and foreign currency transactions (10,643) (1,687) (205) 314 (60)
Net realized gains on futures transactions -- -- -- -- --
Change in unrealized appreciation/depreciation on
investments, options, futures and foreign currency (3,876) (55) (991) (1,445) (3,858)
--------- --------- --------- --------- ---------
Net realized and unrealized gains/(losses) on
investments, options, futures and foreign currency (14,519) (1,742) (1,196) (1,131) (3,918)
--------- --------- --------- --------- ---------
Change in net assets resulting from operations $ 8,435 $ 8,208 $ 1,001 $ 681 $ 2,715
========= ========= ========= ========= =========
OHIO MICHIGAN
MUNICIPAL MUNICIPAL
BOND BOND
FUND (A) FUND (A)
--------- ---------
INVESTMENT INCOME:
Interest income $ 5,394 $ 2,345
Dividend income 32 15
Foreign tax withholding -- --
Income from securities lending -- --
--------- ---------
Total Investment Income 5,426 2,360
--------- ---------
EXPENSES:
Investment advisory fees 689 302
Administrative fees 229 127
Distribution services fees-Class A Shares 62 13
Distribution services fees-Class B Shares 38 8
Distribution services fees-Class C Shares 15 2
Distribution services fees-Advisor Shares -- ^ -- ^
Administrative services fees-Class C Shares 5 1
Accounting fees 76 79
Registration and filing fees 34 20
Transfer and dividend disbursing agent fees 42 27
Custody fees 13 11
Trustees' fees and expenses 5 3
Other expenses 42 21
--------- ---------
Total expenses 1,250 614
--------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (133) (135)
Transfer and dividend disbursing agent fees waived -- --
Distribution services-Class A Shares and
Class B Shares waived -- (5)
--------- ---------
Net Expenses 1,117 474
--------- ---------
Net Investment Income/(Loss) 4,309 1,886
--------- ---------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, OPTIONS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment, option
and foreign currency transactions (203) (247)
Net realized gains on futures transactions -- --
Change in unrealized appreciation/depreciation on
investments, options, futures and foreign currency (2,512) (755)
--------- ---------
Net realized and unrealized gains/(losses) on
investments, options, futures and foreign currency (2,715) (1,002)
--------- ---------
Change in net assets resulting from operations $ 1,594 $ 884
========= =========
_____________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
(b) Formerly the Select Stock Fund. Other expenses includes $73 in legal and
$105 in printing.
(c) Reflects operations for the period from November 29, 2005 (date of
commencement of operations) to July 31, 2006.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
134-135 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP MID CAP
GROWTH FUND GROWTH FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (1,426) $ (1,728) $ (1,152) $ (318)
Net realized gains on investment and
option transactions 39,940 21,831 88,879 3,529
Net realized gains/(losses) on futures transactions 257 811 -- --
Net change in unrealized appreciation/depreciation on
investments, options and futures (34,296) 24,776 (70,388) 83,951
--------- --------- --------- ---------
Change in net assets resulting from operations 4,475 45,690 17,339 87,162
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares -- -- (353) --
Class A Shares -- -- (17) --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares (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) --
--------- --------- --------- ---------
Change in net assets from Fund share transactions (75,185) (13,767) (95,876) (37,413)
--------- --------- --------- ---------
Change in net assets (93,163) (12,903) (83,530) 49,749
NET ASSETS:
Beginning of period 240,224 253,127 444,542 394,793
--------- --------- --------- ---------
End of period $ 147,061 $ 240,224 $ 361,012 $ 444,542
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ (10) $ (12) $ -- $ --
========= ========= ========= =========
LARGE CAP
QUALITY GROWTH FUND CORE FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 (A) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (2,049) $ 863 $ 2,002 $ 1,271
Net realized gains on investment and
option transactions 95,193 40,777 10,681 6,423
Net realized gains/(losses) on futures transactions -- -- (163) 138
Net change in unrealized appreciation/depreciation on
investments, options and futures (123,423) 71,107 (1,203) 9,054
--------- --------- --------- ---------
Change in net assets resulting from operations (30,279) 112,747 11,317 16,886
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares -- (1,869) (1,749) (1,019)
Class A Shares -- (341) (180) (264)
Class B Shares -- (3) (2) (3)
Class C Shares -- (1) -- ^ -- ^
Advisor Shares -- (4) -- ^ NA
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
Distributions from net realized gains:
Institutional Shares -- -- (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 -- (2,218) (4,211) (4,061)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (119,709) (345,411) (13,554) 65,388
--------- --------- --------- ---------
Change in net assets (149,988) (234,882) (6,448) 78,213
NET ASSETS:
Beginning of period 899,888 1,134,770 194,949 116,736
--------- --------- --------- ---------
End of period $ 749,900 $ 899,888 $ 188,501 $ 194,949
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ -- $ -- $ 87 $ 20
========= ========= ========= =========
EQUITY INDEX FUND BALANCED FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 6,743 $ 8,661 $ 1,772 $ 2,720
Net realized gains on investment and
option transactions 15,100 69,597 8,157 7,493
Net realized gains/(losses) on futures transactions 222 715 -- --
Net change in unrealized appreciation/depreciation on
investments, options and futures (1,847) (14,823) (11,421) 3,518
--------- --------- --------- ---------
Change in net assets resulting from operations 20,218 64,150 (1,492) 13,731
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (3,218) (3,630) (922) (1,594)
Class A Shares (1,082) (1,253) (807) (1,180)
Class B Shares (36) (42) (85) (121)
Class C Shares (18) (22) (28) (44)
Advisor Shares (20) (24) (2) (3)
Select Shares (301) (306) NA NA
Preferred Shares (1,209) (1,755) NA NA
Trust Shares (1,121) (1,348) NA NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
--------- --------- --------- ---------
Change in net assets from shareholder distributions (7,005) (8,380) (1,844) (2,942)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (25,827) (170,144) (48,640) (66,996)
--------- --------- --------- ---------
Change in net assets (12,614) (114,374) (51,976) (56,207)
NET ASSETS:
Beginning of period 420,285 534,659 134,330 190,537
--------- --------- --------- ---------
End of period $ 407,671 $ 420,285 $ 82,354 $ 134,330
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ 434 $ 697 $ 134 $ 122
========= ========= ========= =========
MICRO CAP
VALUE FUND
---------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 2005
--------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 20 $ (404)
Net realized gains on investment and
option transactions 41,836 37,827
Net realized gains/(losses) on futures transactions -- --
Net change in unrealized appreciation/depreciation on
investments, options and futures (39,004) (9,592)
--------- ---------
Change in net assets resulting from operations 2,852 27,831
--------- ---------
Distributions from net investment income:
Institutional Shares (84) --
Class A Shares (7) --
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 (42,243) (16,489)
--------- ---------
Change in net assets from Fund share transactions (18,958) (85,038)
--------- ---------
Change in net assets (58,349) (73,696)
NET ASSETS:
Beginning of period 177,579 251,275
--------- ---------
End of period $ 119,230 $ 177,579
========= =========
Accumulated Net Investment Income/(Loss) $ -- $ --
========= =========
_________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
136-137 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND MULTI CAP VALUE FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 488 $ (315) $ 2,902 $ 928
Net realized gains/(losses) on investment transactions 20,068 12,474 67,055 24,985
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments (18,289) 18,099 (43,868) 46,090
--------- --------- --------- ---------
Change in net assets resulting from operations 2,267 30,258 26,089 72,003
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (288) -- (2,147) (1,146)
Class A Shares -- -- (275) (74)
Class B Shares -- -- (53) --
Class C Shares -- -- (10) --
Advisor Shares -- -- (162) (14)
Distributions from net realized gains:
Institutional Shares (13,847) (10,543) (19,664) (15,051)
Class A Shares (285) (219) (3,250) (2,088)
Class B Shares (135) (60) (1,866) (1,156)
Class C Shares (105) (46) (392) (289)
Advisor Shares (147) (140) (2,894) (2,387)
--------- --------- --------- ---------
Change in net assets from shareholder distributions (14,807) (11,008) (30,713) (22,205)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (30,546) 33,727 (50,529) (1,733)
--------- --------- --------- ---------
Change in net assets (43,086) 52,977 (55,153) 48,065
NET ASSETS:
Beginning of period 165,268 112,291 379,051 330,986
--------- --------- --------- ---------
End of period $ 122,182 $ 165,268 $ 323,898 $ 379,051
========= ========= ========= =========
Accumulated Net Investment Income $ 200 $ -- $ 255 $ --
========= ========= ========= =========
DISCIPLINED LARGE CAP LIFEMODEL
VALUE FUND AGGRESSIVE FUND SM
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 (A) 2005 2006 (A) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 8,363 $ 8,216 $ 1,846 $ 1,123
Net realized gains/(losses) on investment transactions 88,966 52,351 (82)+ 637 +
Realized gain distributions from underlying funds -- -- 5,088 2,976
Net change in unrealized appreciation/depreciation
on investments (44,459) 37,251 (259) 14,201
--------- --------- --------- ---------
Change in net assets resulting from operations 52,870 97,818 6,593 18,937
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (7,875) (7,923) (1,151) (680)
Class A Shares (266) (241) (540) (374)
Class B Shares (24) (14) (115) (72)
Class C Shares (9) (6) (16) (9)
Advisor Shares (2) NA (1) NA
Distributions from net realized gains:
Institutional Shares (54,494) (16,850) (1,714) (346)
Class A Shares (2,337) (655) (1,043) (248)
Class B Shares (541) (134) (349) (81)
Class C Shares (222) (57) (48) (11)
Advisor Shares (16) NA (1) NA
--------- --------- --------- ---------
Change in net assets from shareholder distributions (65,786) (25,880) (4,978) (1,821)
--------- --------- --------- ---------
Change in net assets from Fund share transactions 18,441 (125,327) 34,927 14,139
--------- --------- --------- ---------
Change in net assets 5,525 (53,389) 36,542 31,255
NET ASSETS:
Beginning of period 607,108 660,497 135,611 104,356
--------- --------- --------- ---------
End of period $ 612,633 $ 607,108 $ 172,153 $ 135,611
========= ========= ========= =========
Accumulated Net Investment Income $ 711 $ 524 $ 23 $ --
========= ========= ========= =========
LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE FUND SM MODERATE FUND SM
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 (A) 2005 2006 (A) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 5,684 $ 3,460 $ 12,348 $ 9,811
Net realized gains/(losses) on investment transactions 12 + 1,446 + 703 + 2,848 +
Realized gain distributions from underlying funds 8,409 4,937 10,525 7,386
Net change in unrealized appreciation/depreciation
on investments (1,747) 23,784 (6,444) 28,761
--------- --------- --------- ---------
Change in net assets resulting from operations 12,358 33,627 17,132 48,806
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (2,542) (1,539) (8,669) (7,125)
Class A Shares (2,296) (1,532) (2,511) (1,978)
Class B Shares (563) (276) (733) (479)
Class C Shares (93) (52) (120) (88)
Advisor Shares (10) NA (4) NA
Distributions from net realized gains:
Institutional Shares (2,273) (537) (6,249) (768)
Class A Shares (2,490) (650) (2,006) (240)
Class B Shares (996) (257) (828) (93)
Class C Shares (172) (50) (142) (17)
Advisor Shares (5) NA (2) NA
--------- --------- --------- ---------
Change in net assets from shareholder distributions (11,440) (4,893) (21,264) (10,788)
--------- --------- --------- ---------
Change in net assets from Fund share transactions 31,606 41,124 26,544 2,644
--------- --------- --------- ---------
Change in net assets 32,524 69,858 22,412 40,662
NET ASSETS:
Beginning of period 294,543 224,685 498,230 457,568
--------- --------- --------- ---------
End of period $ 327,067 $ 294,543 $ 520,642 $ 498,230
========= ========= ========= =========
Accumulated Net Investment Income $ 323 $ 143 $ 939 $ 628
========= ========= ========= =========
LIFEMODEL MODERATELY
CONSERVATIVE FUND SM
---------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 (A) 2005
--------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 2,836 $ 2,245
Net realized gains/(losses) on investment transactions 1,257 + 794 +
Realized gain distributions from underlying funds 1,770 1,270
Net change in unrealized appreciation/depreciation
on investments (2,737) 4,723
--------- ---------
Change in net assets resulting from operations 3,126 9,032
--------- ---------
Distributions from net investment income:
Institutional Shares (1,189) (970)
Class A Shares (1,076) (878)
Class B Shares (434) (321)
Class C Shares (70) (51)
Advisor Shares (2) 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 (5,206) (3,028)
--------- ---------
Change in net assets from Fund share transactions (983) (2,817)
--------- ---------
Change in net assets (3,063) 3,187
NET ASSETS:
Beginning of period 106,833 103,646
--------- ---------
End of period $ 103,770 $ 106,833
========= =========
Accumulated Net Investment Income $ 218 $ 153
========= =========
___________________________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
SEE NOTES TO FINANCIAL STATEMENTS
138-139 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
LIFEMODEL STRATEGIC
CONSERVATIVE FUND SM INCOME FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,918 $ 1,530 $ 6,795 $ 7,124
Net realized gains/(losses) on investment, option, and
foreign currency transactions 503 + (11) + 1,927 481
Net realized gains on futures transactions -- -- -- --
Realized gain distributions from underlying funds 631 544 -- --
Net change in unrealized appreciation/depreciation
on investments, options, futures and foreign currency (1,657) 1,359 (5,228) 5,346
--------- --------- --------- ---------
Change in net assets resulting from operations 1,395 3,422 3,494 12,951
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (870) (500) (4,619) (4,198)
Class A Shares (615) (620) (218) (110)
Class B Shares (295) (264) (69) (36)
Class C Shares (109) (111) (861) (1,191)
Advisor Shares (1) NA (1,065) (1,483)
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)
--------- --------- --------- ---------
Change in net assets from shareholder distributions (2,475) (1,994) (7,304) (7,142)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (4,570) 4,065 (8,104) (11,467)
--------- --------- --------- ---------
Change in net assets (5,650) 5,493 (11,914) (5,658)
NET ASSETS:
Beginning of period 60,242 54,749 165,960 171,618
--------- --------- --------- ---------
End of period $ 54,592 $ 60,242 $ 154,046 $ 165,960
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ 156 $ 128 $ (100) $ (63)
========= ========= ========= =========
DIVIDEND GROWTH FUND
------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 (a) (b) 2005
----------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 233 $ (142)
Net realized gains/(losses) on investment, option, and
foreign currency transactions 2,473 245
Net realized gains on futures transactions -- --
Realized gain distributions from underlying funds -- --
Net change in unrealized appreciation/depreciation
on investments, options, futures and foreign currency (1,483) 1,776
----------- ---------
Change in net assets resulting from operations 1,223 1,879
----------- ---------
Distributions from net investment income:
Institutional Shares (178) --
Class A Shares (53) --
Class B Shares (3) --
Class C Shares (3) --
Advisor Shares -- ^ NA
Distributions from net realized gains:
Institutional Shares -- --
Class A Shares -- --
Class B Shares -- --
Class C Shares -- --
Advisor Shares -- NA
----------- ---------
Change in net assets from shareholder distributions (237) --
----------- ---------
Change in net assets from Fund share transactions 6,329 (5,570)
----------- ---------
Change in net assets 7,315 (3,691)
NET ASSETS:
Beginning of period 13,887 17,578
----------- ---------
End of period $ 21,202 $ 13,887
=========== =========
Accumulated Net Investment Income/(Loss) $ -- $ --
=========== =========
INTERNATIONAL
TECHNOLOGY FUND EQUITY FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (707) $ (699) $ 5,183 $ 4,228
Net realized gains/(losses) on investment, option, and
foreign currency transactions 2,359 3,738 16,142 23,657
Net realized gains on futures transactions -- -- 3,059 1,695
Realized gain distributions from underlying funds -- -- -- --
Net change in unrealized appreciation/depreciation
on investments, options, futures and foreign currency (3,384) 4,482 64,678 34,124
--------- --------- --------- ---------
Change in net assets resulting from operations (1,732) 7,521 89,062 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 10,315 (9,010) 85,787 (100,439)
--------- --------- --------- ---------
Change in net assets 8,583 (1,489) 157,585 (44,017)
NET ASSETS:
Beginning of period 46,629 48,118 317,542 361,559
--------- --------- --------- ---------
End of period $ 55,212 $ 46,629 $ 475,127 $ 317,542
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ -- $ -- $ 1,428 $ 4,804
========= ========= ========= =========
HIGH YIELD
BOND FUND BOND FUND
---------- ----------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31,
2006 (c) 2006 2005
---------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 2,423 $ 11,962 $ 9,498
Net realized gains/(losses) on investment, option, and
foreign currency transactions 230 (2,853) 6,278
Net realized gains on futures transactions -- -- --
Realized gain distributions from underlying funds -- -- --
Net change in unrealized appreciation/depreciation
on investments, options, futures and foreign currency (2,004) (5,788) (2,694)
---------- --------- ---------
Change in net assets resulting from operations 649 3,321 13,082
---------- --------- ---------
Distributions from net investment income:
Institutional Shares (2,421) (12,002) (10,012)
Class A Shares (7) (581) (669)
Class B Shares (2) (107) (114)
Class C Shares (2) (16) (19)
Advisor Shares -- ^ (16) (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 (2,432) (14,559) (11,186)
---------- --------- ---------
Change in net assets from Fund share transactions 68,204 (34,827) 5,001
---------- --------- ---------
Change in net assets 66,421 (46,065) 6,897
NET ASSETS:
Beginning of period -- 313,097 306,200
---------- --------- ---------
End of period $ 66,421 $ 267,032 $ 313,097
========== ========= =========
Accumulated Net Investment Income/(Loss) $ 22 $ 27 $ 48
========== ========= =========
___________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
(b) Formerly the Select Stock Fund.
(c) Reflects operations for the period from November 29, 2005 (date of
commencement of operations) to July 31, 2006.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
140-141 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
INTERMEDIATE SHORT TERM
BOND FUND BOND FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 22,954 $ 23,267 $ 9,950 $ 11,175
Net realized gains/(losses) on investment transactions (10,643) 4,672 (1,687) (3,173)
Net change in unrealized appreciation/depreciation
on investments (3,876) (8,592) (55) (2,091)
--------- --------- --------- ---------
Change in net assets resulting from operations 8,435 19,347 8,208 5,911
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (22,657) (25,017) (11,345) (15,030)
Class A Shares (1,162) (1,343) (541) (726)
Class B Shares (118) (146) NA NA
Class C Shares (34) (44) (7) (11)
Advisor Shares -- ^ NA -- ^ NA
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- NA NA
Class C Shares -- -- -- --
Advisor Shares -- NA -- NA
--------- --------- --------- ---------
Change in net assets from shareholder distributions (23,971) (26,550) (11,893) (15,767)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (95,752) (133,932) (76,710) (162,815)
--------- --------- --------- ---------
Change in net assets (111,288) (141,135) (80,395) (172,671)
NET ASSETS:
Beginning of period 578,311 719,446 351,388 524,059
--------- --------- --------- ---------
End of period $ 467,023 $ 578,311 $ 270,993 $ 351,388
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ 69 $ 59 $ 15 $ 63
========= ========= ========= =========
U.S. GOVERNMENT
BOND FUND
----------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 (a) 2005
--------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,197 $ 1,915
Net realized gains/(losses) on investment transactions (205) 519
Net change in unrealized appreciation/depreciation
on investments (991) (744)
--------- ---------
Change in net assets resulting from operations 1,001 1,690
--------- ---------
Distributions from net investment income:
Institutional Shares (1,092) (1,002)
Class A Shares (848) (725)
Class B Shares NA NA
Class C Shares (58) (63)
Advisor Shares -- ^ NA
Distributions from net realized gains:
Institutional Shares (79) --
Class A Shares (68) --
Class B Shares NA NA
Class C Shares (6) --
Advisor Shares -- ^ NA
--------- ---------
Change in net assets from shareholder distributions (2,151) (1,790)
--------- ---------
Change in net assets from Fund share transactions (7,677) (15,817)
--------- ---------
Change in net assets (8,827) (15,917)
NET ASSETS:
Beginning of period 63,304 79,221
--------- ---------
End of period $ 54,477 $ 63,304
========= =========
Accumulated Net Investment Income/(Loss) $ 154 $ 96
========= =========
INTERMEDIATE MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 (a) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,812 $ 2,203 $ 6,633 $ 8,041
Net realized gains/(losses) on investment transactions 314 2,624 (60) 3,539
Net change in unrealized appreciation/depreciation
on investments (1,445) (2,137) (3,858) (4,799)
--------- --------- --------- ---------
Change in net assets resulting from operations 681 2,690 2,715 6,781
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (1,688) (2,063) (6,495) (9,070)
Class A Shares (55) (72) (93) (134)
Class B Shares (36) (44) (24) (41)
Class C Shares (4) (9) (3) (7)
Advisor Shares (10) (14) -- ^ NA
Distributions from net realized gains:
Institutional Shares (2,037) (2,066) (2,353) (1,780)
Class A Shares (70) (89) (36) (30)
Class B Shares (65) (59) (11) (9)
Class C Shares (8) (16) (2) (2)
Advisor Shares (16) (17) -- ^ NA
--------- --------- --------- ---------
Change in net assets from shareholder distributions (3,989) (4,449) (9,017) (11,073)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (7,998) (7,190) (35,350) (47,562)
--------- --------- --------- ---------
Change in net assets (11,306) (8,949) (41,652) (51,854)
NET ASSETS:
Beginning of period 53,475 62,424 209,286 261,140
--------- --------- --------- ---------
End of period $ 42,169 $ 53,475 $ 167,634 $ 209,286
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ 12 $ -- $ 15 $ 8
========= ========= ========= =========
OHIO MUNICIPAL MICHIGAN MUNICIPAL
BOND FUND BOND FUND
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005
--------- --------- --------- ---------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 4,309 $ 5,034 $ 1,886 $ 2,600
Net realized gains/(losses) on investment transactions (203) 616 (247) 97
Net change in unrealized appreciation/depreciation
on investments (2,512) (1,635) (755) (1,219)
--------- --------- --------- ---------
Change in net assets resulting from operations 1,594 4,015 884 1,478
--------- --------- --------- ---------
Distributions from net investment income:
Institutional Shares (3,375) (3,881) (1,725) (2,418)
Class A Shares (812) (872) (136) (150)
Class B Shares (100) (109) (15) (23)
Class C Shares (48) (94) (5) (14)
Advisor Shares -- ^ NA -- ^ NA
Distributions from net realized gains:
Institutional Shares (240) (857) -- (120)
Class A Shares (63) (200) -- (8)
Class B Shares (10) (33) -- (2)
Class C Shares (4) (29) -- (1)
Advisor Shares -- ^ NA -- NA
--------- --------- --------- ---------
Change in net assets from shareholder distributions (4,652) (6,075) (1,881) (2,736)
--------- --------- --------- ---------
Change in net assets from Fund share transactions (24,071) (19,764) (23,235) (34,329)
--------- --------- --------- ---------
Change in net assets (27,129) (21,824) (24,232) (35,587)
NET ASSETS:
Beginning of period 140,523 162,347 80,436 116,023
--------- --------- --------- ---------
End of period $ 113,394 $ 140,523 $ 56,204 $ 80,436
========= ========= ========= =========
Accumulated Net Investment Income/(Loss) $ 6 $ 72 $ 2 $ --
========= ========= ========= =========
____________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
142-143 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND QUALITY GROWTH FUND
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005 2006 2005
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 13,485 $ 54,748 $ 46,492 $ 80,245 $ 117,271 $ 151,799
Dividends reinvested 19,476 39,477 4,159 -- -- 694
Shares redeemed (104,269) (104,594) (136,084) (98,890) (183,406) (414,863)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (71,308) (10,369) (85,433) (18,645) (66,135) (262,370)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 2,925 1,881 2,329 3,564 3,847 6,110
Dividends reinvested 2,452 4,334 487 -- -- 321
Shares redeemed (8,398) (9,484) (11,762) (20,717) (50,363) (81,333)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (3,021) (3,269) (8,946) (17,153) (46,516) (74,902)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 66 233 647 517 508 607
Dividends reinvested 201 320 80 -- -- 2
Shares redeemed (490) (523) (1,253) (1,730) (4,375) (5,664)
--------- --------- --------- --------- --------- ---------
Total Class B Shares (223) 30 (526) (1,213) (3,867) (5,055)
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 60 34 231 255 187 299
Dividends reinvested 68 117 18 -- -- 1
Shares redeemed (315) (324) (783) (701) (2,073) (3,196)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (187) (173) (534) (446) (1,886) (2,896)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 49 123 224 267 595 546
Dividends reinvested 90 213 9 -- -- 4
Shares redeemed (585) (322) (670) (223) (1,900) (738)
--------- --------- --------- --------- --------- ---------
Total Advisor Shares (446) 14 (437) 44 (1,305) (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 $ (75,185) $ (13,767) $ (95,876) $ (37,413) $(119,709) $(345,411)
========= ========= ========= ========= ========= =========
LARGE CAP CORE FUND EQUITY INDEX FUND BALANCED FUND
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 2005 2006 2005
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 16,964 $ 100,722 $ 82,440 $ 52,844 $ 4,152 $ 7,356
Dividends reinvested 2,159 2,375 2,686 2,884 818 1,433
Shares redeemed (28,562) (33,811) (74,461) (102,652) (27,677) (52,487)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (9,439) 69,286 10,665 (46,924) (22,707) (43,698)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 1,337 2,862 9,892 8,770 1,014 3,084
Dividends reinvested 435 889 1,048 1,216 783 1,148
Shares redeemed (5,713) (7,801) (18,395) (20,648) (22,227) (23,632)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (3,941) (4,050) (7,455) (10,662) (20,430) (19,400)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 144 366 491 956 164 320
Dividends reinvested 10 23 29 36 82 117
Shares redeemed (244) (254) (840) (821) (3,380) (3,366)
--------- --------- --------- --------- --------- ---------
Total Class B Shares (90) 135 (320) 171 (3,134) (2,929)
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 72 36 506 937 113 221
Dividends reinvested 2 4 14 19 28 43
Shares redeemed (161) (23) (903) (889) (2,452) (1,230)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (87) 17 (383) 67 (2,311) (966)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 3 NA 932 788 15 31
Dividends reinvested --^ NA 17 22 2 3
Shares redeemed -- NA (1,100) (352) (75) (37)
--------- --------- --------- --------- --------- ---------
Total Advisor Shares 3 NA (151) 458 (58) (3)
--------- --------- --------- --------- --------- ---------
Select Shares
Shares issued NA NA 4,805 5,010 NA NA
Dividends reinvested NA NA 237 235 NA NA
Shares redeemed NA NA (6,577) (2,666) NA NA
--------- --------- --------- --------- --------- ---------
Total Select Shares NA NA (1,535) 2,579 NA NA
--------- --------- --------- --------- --------- ---------
Preferred Shares
Shares issued NA NA 13,177 13,120 NA NA
Dividends reinvested NA NA 1,151 1,695 NA NA
Shares redeemed NA NA (30,070) (117,426) NA NA
--------- --------- --------- --------- --------- ---------
Total Preferred Shares NA NA (15,742) (102,611) NA NA
--------- --------- --------- --------- --------- ---------
Trust Shares
Shares issued NA NA 2,558 23,837 NA NA
Dividends reinvested NA NA 206 190 NA NA
Shares redeemed NA NA (13,670) (37,249) NA NA
--------- --------- --------- --------- --------- ---------
Total Trust Shares NA NA (10,906) (13,222) NA NA
--------- --------- --------- --------- --------- ---------
Change from capital transactions $ (13,554) $ 65,388 $ (25,827) $(170,144) $ (48,640) $ (66,996)
========= ========= ========= ========= ========= =========
MICRO CAP VALUE FUND
----------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 2005
--------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 20,739 $ 9,452
Dividends reinvested 25,967 9,657
Shares redeemed (48,158) (82,599)
--------- ---------
Total Institutional Shares (1,452) (63,490)
--------- ---------
Class A Shares
Shares issued 6,881 1,651
Dividends reinvested 4,993 2,394
Shares redeemed (18,229) (18,230)
--------- ---------
Total Class A Shares (6,355) (14,185)
--------- ---------
Class B Shares
Shares issued 554 261
Dividends reinvested 2,023 480
Shares redeemed (1,862) (744)
--------- ---------
Total Class B Shares 715 (3)
--------- ---------
Class C Shares
Shares issued 1,741 1,306
Dividends reinvested 1,557 371
Shares redeemed (2,665) (1,504)
--------- ---------
Total Class C Shares 633 173
--------- ---------
Advisor Shares
Shares issued 1,834 3,832
Dividends reinvested 5,916 2,517
Shares redeemed (20,249) (13,882)
--------- ---------
Total Advisor Shares (12,499) (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 $ (18,958) $ (85,038)
========= =========
_____________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars.
SEE NOTES TO FINANCIAL STATEMENTS
144-145 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND QUALITY GROWTH FUND
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005 2006 2005
--------- --------- --------- --------- --------- ---------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 912 3,582 2,731 5,611 7,148 10,164
Dividends reinvested 1,403 2,753 251 -- -- 46
Shares redeemed (7,052) (7,034) (8,277) (7,004) (11,117) (27,268)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (4,737) (699) (5,295) (1,393) (3,969) (17,058)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 199 129 140 255 235 417
Dividends reinvested 182 310 30 -- -- 22
Shares redeemed (575) (649) (712) (1,481) (3,090) (5,468)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (194) (210) (542) (1,226) (2,855) (5,029)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 4 16 41 39 32 43
Dividends reinvested 15 23 5 -- -- -- ^
Shares redeemed (34) (36) (80) (129) (279) (395)
--------- --------- --------- --------- --------- ---------
Total Class B Shares (15) 3 (34) (90) (247) (352)
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 4 2 15 20 13 21
Dividends reinvested 5 8 1 -- -- -- ^
Shares redeemed (22) (22) (51) (52) (136) (228)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (13) (12) (35) (32) (123) (207)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 2 9 14 18 38 36
Dividends reinvested 7 15 1 -- -- -- ^
Shares redeemed (39) (22) (42) (16) (119) (50)
--------- --------- --------- --------- --------- ---------
Total Advisor Shares (30) 2 (27) 2 (81) (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 (4,989) (916) (5,933) (2,739) (7,275) (22,660)
========= ========= ========= ========= ========= =========
LARGE CAP CORE FUND EQUITY INDEX FUND BALANCED FUND
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 2005 2006 2005
--------- --------- --------- --------- --------- ---------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,143 7,053 3,433 2,347 327 589
Dividends reinvested 146 171 112 128 65 114
Shares redeemed (1,923) (2,437) (3,119) (4,521) (2,178) (4,211)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (634) 4,787 426 (2,046) (1,786) (3,508)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 91 212 418 402 80 249
Dividends reinvested 30 65 44 54 62 92
Shares redeemed (389) (571) (768) (934) (1,767) (1,901)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (268) (294) (306) (478) (1,625) (1,560)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 9 26 21 43 12 26
Dividends reinvested 1 2 1 2 7 9
Shares redeemed (16) (18) (35) (37) (270) (275)
--------- --------- --------- --------- --------- ---------
Total Class B Shares (6) 10 (13) 8 (251) (240)
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 6 3 21 43 10 18
Dividends reinvested -- ^ -- ^ 1 1 2 4
Shares redeemed (11) (2) (38) (40) (196) (102)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (5) 1 (16) 4 (184) (80)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued -- ^ NA 38 36 1 3
Dividends reinvested -- ^ NA 1 1 -- ^ -- ^
Shares redeemed -- NA (47) (16) (6) (3)
--------- --------- --------- --------- --------- ---------
Total Advisor Shares -- ^ NA (8) 21 (5) -- ^
--------- --------- --------- --------- --------- ---------
Select Shares
Shares issued NA NA 200 224 NA NA
Dividends reinvested NA NA 10 10 NA NA
Shares redeemed NA NA (282) (119) NA NA
--------- --------- --------- --------- --------- ---------
Total Select Shares NA NA (72) 115 NA NA
--------- --------- --------- --------- --------- ---------
Preferred Shares
Shares issued NA NA 550 584 NA NA
Dividends reinvested NA NA 48 76 NA NA
Shares redeemed NA NA (1,250) (5,222) NA NA
--------- --------- --------- --------- --------- ---------
Total Preferred Shares NA NA (652) (4,562) NA NA
--------- --------- --------- --------- --------- ---------
Trust Shares
Shares issued NA NA 107 1,052 NA NA
Dividends reinvested NA NA 9 8 NA NA
Shares redeemed NA NA (573) (1,651) NA NA
--------- --------- --------- --------- --------- ---------
Total Trust Shares NA NA (457) (591) NA NA
--------- --------- --------- --------- --------- ---------
Change from share transactions (913) 4,504 (1,098) (7,529) (3,851) (5,388)
========= ========= ========= ========= ========= =========
MICRO CAP VALUE FUND
----------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 2005
--------- ---------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,122 893
Dividends reinvested 3,250 915
Shares redeemed (5,287) (7,924)
--------- ---------
Total Institutional Shares 85 6,116
--------- ---------
Class A Shares
Shares issued 808 164
Dividends reinvested 644 231
Shares redeemed (1,881) (1,771)
--------- ---------
Total Class A Shares (429) (1,376)
--------- ---------
Class B Shares
Shares issued 62 27
Dividends reinvested 269 47
Shares redeemed (224) (75)
--------- ---------
Total Class B Shares 107 (1)
--------- ---------
Class C Shares
Shares issued 208 128
Dividends reinvested 207 37
Shares redeemed (310) (148)
--------- ---------
Total Class C Shares 105 17
--------- ---------
Advisor Shares
Shares issued 210 390
Dividends reinvested 770 245
Shares redeemed (2,102) (1,385)
--------- ---------
Total Advisor Shares (1,122) (750)
--------- ---------
Select Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
--------- ---------
Total Select Shares NA NA
--------- ---------
Preferred Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
--------- ---------
Total Preferred Shares NA NA
--------- ---------
Trust Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
--------- ---------
Total Trust Shares NA NA
--------- ---------
Change from share transactions (1,254) (8,226)
========= =========
_____________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred shares.
SEE NOTES TO FINANCIAL STATEMENTS
146-147 Spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP
SMALL CAP VALUE FUND MULTI CAP VALUE FUND VALUE FUND
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005 2006 (a) 2005
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 24,440 $ 55,220 $ 31,770 $ 66,947 $ 100,135 $ 82,591
Dividends reinvested 14,091 10,515 19,731 15,107 54,710 18,198
Shares redeemed (68,554) (33,029) (92,103) (82,530) (135,385) (227,228)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (30,023) 32,706 (40,602) (476) 19,460 (126,439)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 651 1,102 5,613 9,858 3,805 7,203
Dividends reinvested 234 184 3,111 1,951 2,217 802
Shares redeemed (946) (1,186) (9,066) (10,763) (7,307) (7,514)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (61) 100 (342) 1,046 (1,285) 491
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 271 599 1,808 2,803 718 1,398
Dividends reinvested 98 55 1,798 1,133 443 139
Shares redeemed (176) (137) (3,853) (3,229) (1,008) (1,172)
--------- --------- --------- --------- --------- ---------
Total Class B Shares 193 517 (247) 707 153 365
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 139 474 1,523 2,020 390 708
Dividends reinvested 93 44 312 213 175 56
Shares redeemed (233) (256) (1,857) (2,078) (603) (508)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (1) 262 (22) 155 (38) 256
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 289 344 2,398 1,914 177 NA
Dividends reinvested 124 129 2,973 2,263 11 NA
Shares redeemed (1,067) (331) (14,687) (7,342) (37) NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares (654) 142 (9,316) (3,165) 151 NA
--------- --------- --------- --------- --------- ---------
Change from capital transactions $ (30,546) $ 33,727 $ (50,529) $ (1,733) $ 18,441 $(125,327)
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,137 2,646 1,243 2,739 6,842 5,849
Dividends reinvested 688 529 813 634 3,972 1,295
Shares redeemed (3,193) (1,594) (3,624) (3,414) (9,395) (15,801)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (1,368) 1,581 (1,568) (41) 1,419 (8,657)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 29 54 222 415 262 509
Dividends reinvested 12 9 129 83 161 57
Shares redeemed (44) (57) (357) (450) (507) (528)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (3) 6 (6) 48 (84) 38
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 13 30 74 121 49 97
Dividends reinvested 5 3 77 49 32 10
Shares redeemed (8) (7) (157) (140) (69) (82)
--------- --------- --------- --------- --------- ---------
Total Class B Shares 10 26 (6) 30 12 25
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 6 24 62 86 27 50
Dividends reinvested 5 2 13 9 13 4
Shares redeemed (11) (12) (75) (88) (42) (36)
--------- --------- --------- --------- --------- ---------
Total Class C Shares -- ^ 14 -- ^ 7 (2) 18
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 14 16 95 81 12 NA
Dividends reinvested 6 7 124 96 1 NA
Shares redeemed (50) (16) (581) (308) (3) NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares (30) 7 (362) (131) 10 NA
--------- --------- --------- --------- --------- ---------
Change from share transactions (1,391) 1,634 (1,942) (87) 1,355 (8,576)
========= ========= ========= ========= ========= =========
LIFEMODEL LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE FUND SM AGGRESSIVE FUND SM MODERATE FUND SM
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 53,193 $ 24,902 $ 51,733 $ 35,699 $ 126,383 $ 62,059
Dividends reinvested 2,838 1,014 4,701 2,008 14,667 7,796
Shares redeemed (25,510) (16,721) (31,436) (20,044) (108,380) (70,750)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares 30,521 9,195 24,998 17,663 32,670 (895)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 13,302 13,179 28,416 37,035 21,112 31,945
Dividends reinvested 1,481 607 4,428 2,109 4,236 2,162
Shares redeemed (12,216) (10,978) (29,928) (21,154) (30,023) (34,525)
--------- --------- --------- --------- --------- ---------
Total Class A Shares 2,567 2,808 2,916 17,990 (4,675) (418)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 2,974 4,444 9,238 11,955 6,180 9,857
Dividends reinvested 413 148 1,457 518 1,437 543
Shares redeemed (2,820) (2,442) (7,487) (7,064) (8,128) (6,313)
--------- --------- --------- --------- --------- ---------
Total Class B Shares 567 2,150 3,208 5,409 (511) 4,087
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 1,133 761 1,836 3,453 1,414 3,077
Dividends reinvested 54 20 232 98 214 93
Shares redeemed (709) (795) (2,972) (3,489) (2,994) (3,300)
--------- --------- --------- --------- --------- ---------
Total Class C Shares 478 (14) (904) 62 (1,366) (130)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 796 NA 1,399 NA 430 NA
Dividends reinvested 1 NA 13 NA 5 NA
Shares redeemed (3) NA (24) NA (9) NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares 794 NA 1,388 NA 426 NA
--------- --------- --------- --------- --------- ---------
Change from capital transactions $ 34,927 $ 14,139 $ 31,606 $ 41,124 $ 26,544 $ 2,644
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 3,631 1,868 3,669 2,705 10,098 5,175
Dividends reinvested 197 75 339 152 1,183 647
Shares redeemed (1,756) (1,234) (2,248) (1,513) (8,678) (5,880)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares 2,072 709 1,760 1,344 2,603 (58)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 910 1,002 2,023 2,859 1,684 2,680
Dividends reinvested 103 45 320 160 342 179
Shares redeemed (839) (824) (2,141) (1,610) (2,400) (2,883)
--------- --------- --------- --------- --------- ---------
Total Class A Shares 174 223 202 1,409 (374) (24)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 208 342 660 925 496 832
Dividends reinvested 29 11 106 39 117 45
Shares redeemed (199) (187) (537) (542) (655) (529)
--------- --------- --------- --------- --------- ---------
Total Class B Shares 38 166 229 422 (42) 348
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 79 59 132 266 115 258
Dividends reinvested 4 1 17 7 17 8
Shares redeemed (50) (62) (212) (268) (241) (278)
--------- --------- --------- --------- --------- ---------
Total Class C Shares 33 (2) (63) 5 (109) (12)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 54 NA 99 NA 35 NA
Dividends reinvested -- ^ NA 1 NA -- ^ NA
Shares redeemed -- ^ NA (2) NA (1) NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares 54 NA 98 NA 34 NA
--------- --------- --------- --------- --------- ---------
Change from share transactions 2,371 1,096 2,226 3,180 2,112 254
========= ========= ========= ========= ========= =========
LIFEMODEL MODERATELY
CONSERVATIVE FUND SM
----------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 (a) 2005
--------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 13,916 $ 9,260
Dividends reinvested 1,999 1,221
Shares redeemed (11,056) (12,191)
--------- ---------
Total Institutional Shares 4,859 (1,710)
--------- ---------
Class A Shares
Shares issued 8,301 8,736
Dividends reinvested 1,872 1,130
Shares redeemed (13,338) (11,563)
--------- ---------
Total Class A Shares (3,165) (1,697)
--------- ---------
Class B Shares
Shares issued 1,693 4,612
Dividends reinvested 874 462
Shares redeemed (4,403) (4,725)
--------- ---------
Total Class B Shares (1,836) 349
--------- ---------
Class C Shares
Shares issued 490 1,608
Dividends reinvested 130 72
Shares redeemed (1,524) (1,439)
--------- ---------
Total Class C Shares (904) 241
--------- ---------
Advisor Shares
Shares issued 65 NA
Dividends reinvested 2 NA
Shares redeemed (4) NA
--------- ---------
Total Advisor Shares 63 NA
--------- ---------
Change from capital transactions $ (983) $ (2,817)
========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,213 824
Dividends reinvested 176 108
Shares redeemed (963) (1,080)
--------- ---------
Total Institutional Shares 426 (148)
--------- ---------
Class A Shares
Shares issued 723 782
Dividends reinvested 165 100
Shares redeemed (1,164) (1,038)
--------- ---------
Total Class A Shares (276) (156)
--------- ---------
Class B Shares
Shares issued 148 417
Dividends reinvested 77 41
Shares redeemed (385) (424)
--------- ---------
Total Class B Shares (160) 34
--------- ---------
Class C Shares
Shares issued 43 144
Dividends reinvested 11 6
Shares redeemed (133) (129)
--------- ---------
Total Class C Shares (79) 21
--------- ---------
Advisor Shares
Shares issued 5 NA
Dividends reinvested -- ^ NA
Shares redeemed -- ^ NA
--------- ---------
Total Advisor Shares 5 NA
--------- ---------
Change from share transactions (84) (249)
========= =========
_____________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
148-149 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
---------------------- ---------------------- -----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 2005 2006 (a) (b) 2005
--------- --------- --------- --------- ----------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 8,371 $ 12,957 $ 30,183 $ 24,974 $ 13,614 $ 503
Dividends reinvested 1,072 610 930 649 103 --
Shares redeemed (6,849) (5,952) (19,695) (21,877) (4,705) (2,518)
--------- --------- --------- --------- ----------- ---------
Total Institutional Shares 2,594 7,615 11,418 3,746 9,012 (2,015)
--------- --------- --------- --------- ----------- ---------
Class A Shares
Shares issued 2,292 9,897 2,449 3,984 301 865
Dividends reinvested 759 764 180 76 51 --
Shares redeemed (6,582) (11,653) (2,492) (652) (2,954) (4,122)
--------- --------- --------- --------- ----------- ---------
Total Class A Shares (3,531) (992) 137 3,408 (2,602) (3,257)
--------- --------- --------- --------- ----------- ---------
Class B Shares
Shares issued 1,035 2,138 600 1,573 114 25
Dividends reinvested 378 351 43 18 2 --
Shares redeemed (3,682) (3,641) (919) (96) (67) (200)
--------- --------- --------- --------- ----------- ---------
Total Class B Shares (2,269) (1,152) (276) 1,495 49 (175)
--------- --------- --------- --------- ----------- ---------
Class C Shares
Shares issued 681 1,893 1,493 2,493 50 15
Dividends reinvested 121 152 792 957 3 --
Shares redeemed (2,211) (3,451) (10,775) (14,830) (196) (138)
--------- --------- --------- --------- ----------- ---------
Total Class C Shares (1,409) (1,406) (8,490) (11,380) (143) (123)
--------- --------- --------- --------- ----------- ---------
Advisor Shares
Shares issued 48 NA 1,974 4,501 13 NA
Dividends reinvested 1 NA 1,076 1,335 -- ^ NA
Shares redeemed (4) NA (13,943) (14,572) -- NA
--------- --------- --------- --------- ----------- ---------
Total Advisor Shares 45 NA (10,893) (8,736) 13 NA
--------- --------- --------- --------- ----------- ---------
Change from capital transactions $ (4,570) $ 4,065 $ (8,104) $ (11,467) $ 6,329 $ (5,570)
========= ========= ========= ========= =========== =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 773 1,199 2,675 2,176 630 25
Dividends reinvested 100 56 82 57 5 --
Shares redeemed (633) (551) (1,745) (1,908) (212) (125)
--------- --------- --------- --------- ----------- ---------
Total Institutional Shares 240 704 1,012 325 423 (100)
--------- --------- --------- --------- ----------- ---------
Class A Shares
Shares issued 212 925 216 348 15 47
Dividends reinvested 71 71 16 7 2 --
Shares redeemed (610) (1,083) (222) (57) (138) (214)
--------- --------- --------- --------- ----------- ---------
Total Class A Shares (327) (87) 10 298 (121) (167)
--------- --------- --------- --------- ----------- ---------
Class B Shares
Shares issued 97 199 52 137 5 1
Dividends reinvested 35 33 4 2 -- ^ --
Shares redeemed (342) (339) (81) (8) (3) (10)
--------- --------- --------- --------- ----------- ---------
Total Class B Shares (210) (107) (25) 131 2 (9)
--------- --------- --------- --------- ----------- ---------
Class C Shares
Shares issued 64 177 133 220 4 1
Dividends reinvested 11 14 71 84 -- ^ --
Shares redeemed (205) (322) (963) (1,308) (10) (8)
--------- --------- --------- --------- ----------- ---------
Total Class C Shares (130) (131) (759) (1,004) (6) (7)
--------- --------- --------- --------- ----------- ---------
Advisor Shares
Shares issued 4 NA 174 394 1 NA
Dividends reinvested -- ^ NA 95 117 -- ^ NA
Shares redeemed -- ^ NA (1,240) (1,279) -- NA
--------- --------- --------- --------- ----------- ---------
Total Advisor Shares 4 NA (971) (768) 1 NA
--------- --------- --------- --------- ----------- ---------
Change from share transactions (423) 379 (733) (1,018) 299 (283)
========= ========= ========= ========= =========== =========
INTERNATIONAL HIGH YIELD
TECHNOLOGY FUND EQUITY FUND BOND FUND BOND FUND
---------------------- ---------------------- ---------- ----------------------
YEAR YEAR YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 2005 2006 (c) 2006 2005
--------- --------- --------- --------- ---------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 22,631 $ 9,259 $ 163,862 $ 82,064 $ 71,545 $ 44,572 $ 93,508
Dividends reinvested -- -- 11,562 2,185 70 4,406 3,033
Shares redeemed (12,574) (14,038) (88,658) (177,553) (3,810) (78,354) (83,909)
--------- --------- --------- --------- ---------- --------- ---------
Total Institutional Shares 10,057 (4,779) 86,766 (93,304) 67,805 (29,376) 12,632
--------- --------- --------- --------- ---------- --------- ---------
Class A Shares
Shares issued 651 1,208 10,028 4,426 272 1,047 2,296
Dividends reinvested -- -- 805 384 5 613 617
Shares redeemed (2,441) (3,614) (7,793) (10,704) (43) (5,324) (9,750)
--------- --------- --------- --------- ---------- --------- ---------
Total Class A Shares (1,790) (2,406) 3,040 (5,894) 234 (3,664) (6,837)
--------- --------- --------- --------- ---------- --------- ---------
Class B Shares
Shares issued 83 121 682 503 103 192 253
Dividends reinvested -- -- 38 10 -- ^ 111 103
Shares redeemed (314) (573) (192) (154) (5) (1,432) (988)
--------- --------- --------- --------- ---------- --------- ---------
Total Class B Shares (231) (452) 528 359 98 (1,129) (632)
--------- --------- --------- --------- ---------- --------- ---------
Class C Shares
Shares issued 611 81 441 519 56 9 79
Dividends reinvested -- -- 33 6 1 18 19
Shares redeemed (316) (1,409) (461) (214) -- (341) (223)
--------- --------- --------- --------- ---------- --------- ---------
Total Class C Shares 295 (1,328) 13 311 57 (314) (125)
--------- --------- --------- --------- ---------- --------- ---------
Advisor Shares
Shares issued 2,678 152 1,477 605 10 48 81
Dividends reinvested -- -- 315 175 -- 14 18
Shares redeemed (694) (197) (6,352) (2,691) -- (406) (136)
--------- --------- --------- --------- ---------- --------- ---------
Total Advisor Shares 1,984 (45) (4,560) (1,911) 10 (344) (37)
--------- --------- --------- --------- ---------- --------- ---------
Change from capital transactions $ 10,315 $ (9,010) $ 85,787 $(100,439) $ 68,204 $ (34,827) $ 5,001
========= ========= ========= ========= ========== ========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,993 1,021 14,066 8,108 7,153 4,530 9,257
Dividends reinvested -- -- 994 211 7 448 299
Shares redeemed (1,182) (1,549) (7,353) (17,002) (381) (7,939) (8,263)
--------- --------- --------- --------- ---------- --------- ---------
Total Institutional Shares 811 (528) 7,707 (8,683) 6,779 (2,961) 1,293
--------- --------- --------- --------- ---------- --------- ---------
Class A Shares
Shares issued 60 135 823 432 27 107 226
Dividends reinvested -- -- 69 37 -- ^ 62 61
Shares redeemed (232) (403) (631) (1,036) (4) (542) (962)
--------- --------- --------- --------- ---------- --------- ---------
Total Class A Shares (172) (268) 261 (567) 23 (373) (675)
--------- --------- --------- --------- ---------- --------- ---------
Class B Shares
Shares issued 9 14 56 48 10 19 25
Dividends reinvested -- -- 3 1 -- ^ 11 10
Shares redeemed (32) (68) (16) (15) -- ^ (144) (97)
--------- --------- --------- --------- ---------- --------- ---------
Total Class B Shares (23) (54) 43 34 10 (114) (62)
--------- --------- --------- --------- ---------- --------- ---------
Class C Shares
Shares issued 53 9 37 51 6 2 8
Dividends reinvested -- -- 3 1 -- ^ 2 2
Shares redeemed (32) (164) (40) (21) -- (35) (23)
--------- --------- --------- --------- ---------- --------- ---------
Total Class C Shares 21 (155) -- ^ 31 6 (31) (13)
--------- --------- --------- --------- ---------- --------- ---------
Advisor Shares
Shares issued 240 17 121 58 1 5 8
Dividends reinvested -- -- 27 17 -- 1 2
Shares redeemed (69) (22) (541) (260) -- (41) (13)
--------- --------- --------- --------- ---------- --------- ---------
Total Advisor Shares 171 (5) (393) (185) 1 (35) (3)
--------- --------- --------- --------- ---------- --------- ---------
Change from share transactions 808 (1,010) 7,618 (9,370) 6,819 (3,514) 540
========= ========= ========= ========= ========== ========= =========
_____________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
(b) Formerly the Select Stock Fund.
(c) Reflects operations for the period from November 29, 2005 (date of
commencement of operations) to July 31, 2006.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
150-151 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
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 (a) 2005 2006 (a) 2005 2006 (a) 2005
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 56,824 $ 78,453 $ 33,522 $ 113,038 $ 4,977 $ 7,325
Dividends reinvested 3,132 4,315 1,840 3,007 552 499
Shares redeemed (148,472) (208,267) (107,348) (268,049) (9,175) (18,374)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (88,516) (125,499) (71,986) (152,004) (3,646) (10,550)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 1,573 2,719 1,127 3,235 755 1,411
Dividends reinvested 915 1,060 469 620 893 709
Shares redeemed (8,407) (11,082) (6,169) (14,513) (4,651) (5,978)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (5,919) (7,303) (4,573) (10,658) (3,003) (3,858)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 4 -- NA NA NA NA
Dividends reinvested 105 128 NA NA NA NA
Shares redeemed (1,112) (749) NA NA NA NA
--------- --------- --------- --------- --------- ---------
Total Class B Shares (1,003) (621) NA NA NA NA
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 151 193 27 206 123 205
Dividends reinvested 31 36 6 9 48 51
Shares redeemed (509) (738) (187) (368) (1,202) (1,665)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (327) (509) (154) (153) (1,031) (1,409)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 13 NA 3 NA 3 NA
Dividends reinvested -- ^ NA -- ^ NA -- ^ NA
Shares redeemed -- NA -- NA -- NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares 13 NA 3 NA 3 NA
--------- --------- --------- --------- --------- ---------
Change from capital transactions $ (95,752) $(133,932) $ (76,710) $(162,815) $ (7,677) $ (15,817)
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 5,899 7,923 3,610 11,863 500 721
Dividends reinvested 326 434 198 317 55 49
Shares redeemed (15,417) (20,921) (11,533) (28,302) (921) (1,804)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (9,192) (12,564) (7,725) (16,122) (366) (1,034)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 163 271 121 341 76 139
Dividends reinvested 95 107 51 65 90 70
Shares redeemed (873) (1,112) (663) (1,534) (469) (588)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (615) (734) (491) (1,128) (303) (379)
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued -- ^ -- NA NA NA NA
Dividends reinvested 11 13 NA NA NA NA
Shares redeemed (116) (75) NA NA NA NA
--------- --------- --------- --------- --------- ---------
Total Class B Shares (105) (62) NA NA NA NA
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 16 19 2 22 13 20
Dividends reinvested 3 4 1 1 5 5
Shares redeemed (53) (74) (20) (39) (122) (164)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (34) (51) (17) (16) (104) (139)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued 1 NA -- ^ NA -- ^ NA
Dividends reinvested -- ^ NA -- ^ NA -- ^ NA
Shares redeemed -- NA -- NA -- NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares 1 NA -- ^ NA -- ^ NA
--------- --------- --------- --------- --------- ---------
Change from share transactions (9,945) (13,411) (8,233) (17,266) (773) (1,552)
========= ========= ========= ========= ========= =========
INTERMEDIATE MUNICIPAL OHIO MUNICIPAL
MUNICIPAL BOND FUND BOND FUND BOND FUND
---------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2006 2005 2006 (a) 2005 2006 (a) 2005
--------- --------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 5,557 $ 8,466 $ 6,499 $ 6,896 $ 4,240 $ 2,429
Dividends reinvested 2,074 2,120 2,456 1,920 303 910
Shares redeemed (14,847) (16,807) (43,318) (54,557) (21,060) (23,611)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (7,216) (6,221) (34,363) (45,741) (16,517) (20,272)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 89 55 22 99 360 4,818
Dividends reinvested 82 96 101 119 248 408
Shares redeemed (323) (907) (533) (1,571) (4,859) (3,892)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (152) (756) (410) (1,353) (4,251) 1,334
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 47 175 -- -- 24 109
Dividends reinvested 80 83 29 40 89 117
Shares redeemed (496) (258) (545) (302) (872) (597)
--------- --------- --------- --------- --------- ---------
Total Class B Shares (369) -- ^ (516) (262) (759) (371)
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 25 51 1 10 -- ^ 249
Dividends reinvested 6 15 5 9 39 108
Shares redeemed (111) (238) (70) (225) (2,586) (812)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (80) (172) (64) (206) (2,547) (455)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued -- 10 3 NA 3 NA
Dividends reinvested 8 19 -- ^ NA -- ^ NA
Shares redeemed (189) (70) -- NA -- NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares (181) (41) 3 NA 3 NA
--------- --------- --------- --------- --------- ---------
Change from capital transactions $ (7,998) $ (7,190) $ (35,350) $ (47,562) $ (24,071) $ (19,764)
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 578 834 644 660 421 234
Dividends reinvested 218 209 243 182 30 88
Shares redeemed (1,541) (1,642) (4,282) (5,195) (2,089) (2,278)
--------- --------- --------- --------- --------- ---------
Total Institutional Shares (745) (599) (3,395) (4,353) (1,638) (1,956)
--------- --------- --------- --------- --------- ---------
Class A Shares
Shares issued 9 5 2 10 35 462
Dividends reinvested 9 9 10 11 25 39
Shares redeemed (34) (88) (53) (149) (478) (377)
--------- --------- --------- --------- --------- ---------
Total Class A Shares (16) (74) (41) (128) (418) 124
--------- --------- --------- --------- --------- ---------
Class B Shares
Shares issued 5 17 -- -- 2 11
Dividends reinvested 8 8 3 4 9 12
Shares redeemed (52) (25) (54) (29) (88) (59)
--------- --------- --------- --------- --------- ---------
Total Class B Shares (39) -- ^ (51) (25) (77) (36)
--------- --------- --------- --------- --------- ---------
Class C Shares
Shares issued 2 5 -- ^ 1 -- ^ 24
Dividends reinvested 1 1 -- ^ 1 3 10
Shares redeemed (12) (23) (6) (22) (256) (77)
--------- --------- --------- --------- --------- ---------
Total Class C Shares (9) (17) (6) (20) (253) (43)
--------- --------- --------- --------- --------- ---------
Advisor Shares
Shares issued -- 1 -- ^ NA -- ^ NA
Dividends reinvested -- ^ 2 -- ^ NA -- ^ NA
Shares redeemed (20) (7) -- NA -- NA
--------- --------- --------- --------- --------- ---------
Total Advisor Shares (20) (4) -- ^ NA -- ^ NA
--------- --------- --------- --------- --------- ---------
Change from share transactions (829) (694) (3,493) (4,526) (2,386) (1,911)
========= ========= ========= ========= ========= =========
MICHIGAN MUNICIPAL
BOND FUND
----------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2006 (a) 2005
--------- ---------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 3,535 $ 5,241
Dividends reinvested 77 259
Shares redeemed (26,140) (35,599)
--------- ---------
Total Institutional Shares (22,528) (30,099)
--------- ---------
Class A Shares
Shares issued 777 19
Dividends reinvested 98 114
Shares redeemed (782) (2,641)
--------- ---------
Total Class A Shares 93 (2,508)
--------- ---------
Class B Shares
Shares issued -- 34
Dividends reinvested 8 14
Shares redeemed (564) (430)
--------- ---------
Total Class B Shares (556) (382)
--------- ---------
Class C Shares
Shares issued 5 37
Dividends reinvested 5 14
Shares redeemed (257) (1,391)
--------- ---------
Total Class C Shares (247) (1,340)
--------- ---------
Advisor Shares
Shares issued 3 NA
Dividends reinvested -- ^ NA
Shares redeemed -- NA
--------- ---------
Total Advisor Shares 3 NA
--------- ---------
Change from capital transactions $ (23,235) $ (34,329)
========= =========
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 355 516
Dividends reinvested 8 26
Shares redeemed (2,626) (3,508)
--------- ---------
Total Institutional Shares (2,263) (2,966)
--------- ---------
Class A Shares
Shares issued 78 2
Dividends reinvested 10 11
Shares redeemed (79) (261)
--------- ---------
Total Class A Shares 9 (248)
--------- ---------
Class B Shares
Shares issued -- 3
Dividends reinvested 1 1
Shares redeemed (57) (42)
--------- ---------
Total Class B Shares (56) (38)
--------- ---------
Class C Shares
Shares issued -- ^ 4
Dividends reinvested -- ^ 1
Shares redeemed (25) (137)
--------- ---------
Total Class C Shares (25) (132)
--------- ---------
Advisor Shares
Shares issued -- ^ NA
Dividends reinvested -- ^ NA
Shares redeemed -- NA
--------- ---------
Total Advisor Shares -- ^ NA
--------- ---------
Change from share transactions (2,335) (3,384)
========= =========
________________
(a) Reflects operations for the period from August 1, 2005 (date of
commencement of operations) to July 31, 2006 for Advisor Shares.
^ Represents fewer than five hundred dollars/shares.
SEE NOTES TO FINANCIAL STATEMENTS
152-153 Spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2006
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Fifth Third Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company established as a Massachusetts business trust. At July 31, 2006, the
Trust consisted of thirty-six separate investment portfolios, one of which is
not currently offered and not included in these financial statements.
The accompanying financial statements and notes relate only to the following
Funds (individually a "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 each offer 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. Class A Shares and Advisor 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
154
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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. Class B Shares of the Intermediate Bond Fund
and Intermediate Municipal Bond Fund are closed for purchases to all investors.
Under the Trust'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 at fair value on the basis of the closing bid
as supplied by an independent pricing service approved by the Board of Trustees
("Trustees") or valuations provided by dealers. 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
155
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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 Funds' securities transactions are recorded 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. Paydown gains and losses on
mortgage-and asset-backed securities are recorded as adjustments to interest
income. 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 settlement of security transactions in
foreign currencies. 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 designated 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
$1,750,788 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.
156
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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 collateralized 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.
Pursuant to an exemptive order from the Securities and Exchange Commission, the
cash collateral received by the Funds was pooled, which in turn the cash may
then be invested in a pool of 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.
OTHER--Expenses directly attributable to a Fund are charged to the Fund, while
expenses which are attributable to more than one Fund of the Trust are allocated
among the respective Funds based on their 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.
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.
157
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Fund's tax return to determine whether the tax positions
are "more-likely-than-not" of being sustained by the applicable tax authority.
Tax positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Management has not completed
their analysis on whether the adoption of FIN 48 will have an impact to the
financial statements.
(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 rates based on
the respective Funds' 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
$1,624,847 in fees from Fifth Third during the year ended July 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 subject to adjustment annually by the percentage
increase in consumer prices for services as measured by the United States
Consumer Price Index. BISYS pays the salary and other compensation earned by any
such individuals as employees of BISYS.
158
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
The Advisor and Administrator have entered into expense limitation agreements
with the Funds. 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 July 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 reimbursement
expiring on November 28, 2006. $ 146 $1,149 $ 439 $ 829 $ 1,154
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% 1.18%
Amount subject to reimbursement
expiring on November 28, 2006. $ 301 $ 195 $ 71 $ 152 $ 94
For the period from August 1, 2005 for the Dividend Growth Fund, through July
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%
Amount subject to reimbursement
expiring on November 28, 2008. $ 398
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
159
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor,
Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's
principal distributor. Under the terms of the Plan, the Funds will compensate
the principal distributor from the net assets of the Funds' Class A Shares,
Class B Shares, Class C Shares and Advisor Shares to finance activities intended
to result in the sales of each Funds' shares. The Plan provides that the Funds
may incur distribution expenses up to 0.25% of the average daily net assets for
Class A Shares, up to 1.00% of the average daily net assets for Class B Shares,
up to 0.75% of the average daily net assets for Class C Shares and up to 0.50%
of the average daily net assets for Advisor Shares, annually, to compensate the
distributor. For the year ended July 31, 2006, the Distributor received
$2,708,507 from commissions earned on sales of Class A Shares and Advisor Shares
and redemption of Class B Shares and Class C Shares, of which, the Distributor
re-allowed $2,602,974 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 $594,531 in fees for its services during the
year ended July 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
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 $2,827,627 in fees from Fifth Third
during the year ended July 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.
160
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
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 year
ended July 31, 2006, were as follows (Amounts in thousands):
PURCHASES SALES
---------- ----------
Small Cap Growth Fund $ 119,234 $ 225,024
Mid Cap Growth Fund 266,642 370,349
Quality Growth Fund 891,333 1,017,583
Large Cap Core Fund 233,735 249,453
Equity Index Fund 24,060 54,966
Balanced Fund 190,070 239,856
Micro Cap Value Fund 58,134 127,611
Small Cap Value Fund 127,982 163,211
Multi Cap Value Fund 135,908 214,042
Disciplined Large Cap Value Fund 335,104 374,733
LifeModel Aggressive Fund SM 45,484 21,153
LifeModel Moderately Aggressive Fund SM 78,606 59,198
LifeModel Moderate Fund SM 148,309 144,150
LifeModel Moderately Conservative Fund SM 22,777 30,308
LifeModel Conservative Fund SM 8,636 15,036
Strategic Income Fund 11,133 25,799
Dividend Growth Fund 34,666 28,624
Technology Fund 281,694 273,300
International Equity Fund 149,211 94,332
High Yield Bond Fund 80,194 17,744
Bond Fund 782,168 849,986
Intermediate Bond Fund 606,468 823,559
Short Term Bond Fund 132,194 193,776
U.S. Government Bond Fund 53,625 73,357
Municipal Bond Fund 39,401 47,244
Intermediate Municipal Bond Fund 109,925 145,877
Ohio Municipal Bond Fund 31,382 56,054
Michigan Municipal Bond Fund 7,858 31,763
Purchase and sales of long-term U.S. Government Securities for the year ended
July 31, 2006, were as follows (Amounts in thousands):
PURCHASES SALES
---------- ----------
Balanced Fund $ 68,822 $ 81,149
Strategic Income Fund -- 122
Bond Fund 741,026 771,955
Intermediate Bond Fund 81,042 146,729
Short Term Bond Fund 41,340 52,739
U.S. Government Bond Fund 53,618 67,451
(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 year.
161
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
(6) FEDERAL TAX INFORMATION
The Funds designate the following amounts as long term capital gain
distributions qualifying for the maximum 15% income tax rate for individuals.
The amounts designated may not agree with the long term capital gains in the tax
character of distribution table due to utilization of earnings and profits
distributed to shareholders on redemption of shares. (Amounts in thousands):
AMOUNT
---------
Small Cap Growth Fund $ 23,558
Mid Cap Growth Fund 4,993
Large Cap Core Fund 2,280
Micro Cap Value Fund 43,999
Small Cap Value Fund 6,294
Multi Cap Value Fund 28,876
Disciplined Large Cap Value Fund 49,300
LifeModel Aggressive Fund SM 3,132
LifeModel Moderately Aggressive Fund SM 5,004
LifeModel Moderate Fund SM 8,544
LifeModel Moderately Conservative Fund SM 2,257
LifeModel Conservative Fund SM 448
Strategic Income Fund 472
International Equity Fund 10,140
Bond Fund 697
U.S. Government Bond Fund 153
Municipal Bond Fund 2,043
Intermediate Municipal Bond Fund 1,654
Ohio Municipal Bond Fund 275
The tax character of distributions paid during the fiscal year ended July 31,
2006 was as follows (Amounts in thousands):
DISTRIBUTIONS PAID FROM
-----------------------------
NET
LONG TERM TAX TOTAL
ORDINARY CAPITAL EXEMPT DISTRIBUTIONS
INCOME GAINS INCOME PAID
-------- --------- ------ -------------
Small Cap Growth Fund -- $ 22,453 -- $22,453
Mid Cap Growth Fund -- 4,993 -- 4,993
Large Cap Core Fund $ 1,931 2,280 -- 4,211
Equity Index Fund 7,005 -- -- 7,005
Balanced Fund 1,844 -- -- 1,844
Micro Cap Value Fund 91 42,152 -- 42,243
Small Cap Value Fund 8,884 5,923 -- 14,807
Multi Cap Value Fund 2,972 27,741 -- 30,713
Disciplined Large Cap Value Fund 17,021 48,765 -- 65,786
LifeModel Aggressive Fund SM 1,846 3,132 -- 4,978
LifeModel Moderately Aggressive Fund SM 6,436 5,004 -- 11,440
LifeModel Moderate Fund SM 12,720 8,544 -- 21,264
LifeModel Moderately Conservative Fund SM 2,949 2,257 -- 5,206
LifeModel Conservative Fund SM 2,027 448 -- 2,475
Strategic Income Fund 6,797 472 -- 7,269
Dividend Growth Fund 237 -- -- 237
International Equity Fund 7,124 10,140 -- 17,264
High Yield Bond Fund 2,432 -- -- 2,432
Bond Fund 13,862 697 -- 14,559
Intermediate Bond Fund 23,971 -- -- 23,971
Short Term Bond Fund 11,893 -- -- 11,893
U.S. Government Bond Fund 1,998 153 -- 2,151
Municipal Bond Fund 160 2,043 $1,786 3,989
Intermediate Municipal Bond Fund 748 1,654 6,615 9,017
Ohio Municipal Bond Fund 43 275 4,334 4,652
Michigan Municipal Bond Fund -- -- 1,881 1,881
162
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
The tax character of distributions paid during the fiscal year ended July 31,
2005 was as follows (Amounts in thousands):
DISTRIBUTIONS PAID FROM
-----------------------------
NET
LONG TERM TAX TOTAL
ORDINARY CAPITAL EXEMPT DISTRIBUTIONS
INCOME GAINS INCOME PAID
-------- --------- ------ -------------
Small Cap Growth Fund -- $ 44,826 -- $44,826
Quality Growth Fund $ 2,218 -- -- 2,218
Large Cap Core Fund 1,286 2,775 -- 4,061
Equity Index Fund 8,380 -- -- 8,380
Balanced Fund 2,942 -- -- 2,942
Micro Cap Value Fund 3,376 13,113 -- 16,489
Small Cap Value Fund 7,395 3,613 -- 11,008
Multi Cap Value Fund 1,673 20,532 -- 22,205
Disciplined Large Cap Value Fund 10,747 15,133 -- 25,880
LifeModel Aggressive Fund SM 1,135 686 -- 1,821
LifeModel Moderately Aggressive Fund SM 3,543 1,350 -- 4,893
LifeModel Moderate Fund SM 9,769 1,019 -- 10,788
LifeModel Moderately Conservative Fund SM 2,405 623 -- 3,028
LifeModel Conservative Fund SM 1,772 222 -- 1,994
Strategic Income Fund 7,053 124 -- 7,177
International Equity Fund 7,282 -- -- 7,282
Bond Fund 10,836 350 -- 11,186
Intermediate Bond Fund 26,550 -- -- 26,550
Short Term Bond Fund 15,767 -- -- 15,767
U.S. Government Bond Fund 1,790 -- -- 1,790
Municipal Bond Fund -- 2,247 $2,202 4,449
Intermediate Municipal Bond Fund -- 1,820 9,253 11,073
Ohio Municipal Bond Fund -- 1,118 4,957 6,075
Michigan Municipal Bond Fund -- 131 2,605 2,736
As of July 31, 2006, the components of accumulated earnings/(deficit) on a tax
basis was as follows (Amounts in thousands):
ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND
TAX EXEMPT ORDINARY LONG-TERM DISTRIBUTIONS OTHER
INCOME INCOME CAPITAL GAINS PAYABLE LOSSES
------------- ------------- ------------- ------------- -----------
Small Cap Growth Fund -- $2,993 $27,317 -- --
Mid Cap Growth Fund -- -- 63,168 -- --
Quality Growth Fund -- -- -- -- ($11,050)
Large Cap Core Fund -- 81 758 -- (32,400)
Equity Index Fund -- 432 -- -- (37,552)
Balanced Fund -- 134 -- -- (44,117)
Micro Cap Value Fund -- 2,220 22,170 -- --
Small Cap Value Fund -- 8,002 7,176 -- --
Multi Cap Value Fund -- 3,652 46,001 -- --
Disciplined Large Cap Value Fund -- 5,095 66,444 -- --
LifeModel Aggressive Fund SM -- 23 5,019 -- --
LifeModel Moderately Aggressive Fund SM -- 825 8,046 -- --
LifeModel Moderate Fund SM -- 2,550 10,618 -- --
LifeModel Moderately Conservative Fund SM -- 301 2,505 -- --
LifeModel Conservative Fund SM -- 283 971 -- --
Strategic Income Fund -- 897 1,526 ($609) --
Dividend Growth Fund -- -- -- -- (14,991)
Technology Fund -- -- -- -- (45,744)
International Equity Fund -- 1,895 6,046 -- (25,416)
High Yield Bond Fund -- 236 -- -- --
Bond Fund -- 24 -- -- (3,789)
Intermediate Bond Fund -- 63 -- -- (38,833)
Short Term Bond Fund -- 17 -- -- (21,769)
U.S. Government Bond Fund -- 154 -- -- (393)
Municipal Bond Fund $12 -- 274 -- --
Intermediate Municipal Bond Fund 13 -- -- -- (52)
Ohio Municipal Bond Fund 6 -- -- -- (123)
Michigan Municipal Bond Fund 2 -- -- -- (301)
TOTAL
UNREALIZED ACCUMULATED
APPRECIATION/ EARNINGS/
(DEPRECIATION)* (DEFICIT)
--------------- -----------
Small Cap Growth Fund $ 27,699 $ 58,009
Mid Cap Growth Fund 61,480 124,648
Quality Growth Fund 50,321 39,271
Large Cap Core Fund 16,720 (14,841)
Equity Index Fund 213,744 176,624
Balanced Fund 629 (43,354)
Micro Cap Value Fund 14,788 39,178
Small Cap Value Fund 5,536 20,714
Multi Cap Value Fund 70,866 120,519
Disciplined Large Cap Value Fund 91,898 163,437
LifeModel Aggressive Fund SM 23,810 28,852
LifeModel Moderately Aggressive Fund SM 39,327 48,198
LifeModel Moderate Fund SM 28,894 42,062
LifeModel Moderately Conservative Fund SM 7,126 9,932
LifeModel Conservative Fund SM 320 1,574
Strategic Income Fund 2,717 4,531
Dividend Growth Fund 1,013 (13,978)
Technology Fund (863) (46,607)
International Equity Fund 65,556 48,081
High Yield Bond Fund (2,004) (1,768)
Bond Fund (4,699) (8,464)
Intermediate Bond Fund (7,010) (45,780)
Short Term Bond Fund (5,822) (27,574)
U.S. Government Bond Fund (987) (1,226)
Municipal Bond Fund 1,064 1,350
Intermediate Municipal Bond Fund 2,554 2,515
Ohio Municipal Bond Fund 1,477 1,360
Michigan Municipal Bond Fund (488) (787)
_______________
* The differences between the book-basis and tax-basis unrealized
appreciation (depreciation) is attributable primarily to: tax deferral of
losses on wash sales and the difference between book and tax amortization
methods for premium and market discount.
163
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
As of July 31, 2006, 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
---------------------------------------------------------------
2007 2008 2009 2010 2011 2012 2013 2014 TOTAL
---- ----- ---- ------- ------- ------ ----- ----- -------
Quality Growth Fund -- -- -- -- $11,050 -- -- -- $11,050
Large Cap Core Fund -- -- -- -- -- $ 793 -- -- 793
Equity Index Fund -- -- -- -- 36,946 606 -- -- 37,552
Balanced Fund -- -- -- -- 44,117 -- -- -- 44,117
Dividend Growth Fund -- -- -- $11,928 3,024 39 -- -- 14,991
Technology Fund -- -- -- 12,493 32,941 -- -- -- 45,434
Bond Fund -- -- -- -- -- -- -- 399 399
Intermediate Bond Fund -- 3,390 970 313 -- 2,968 3,492 6,550 17,683
Short Term Bond Fund 220 1,126 -- -- -- 733 6,363 9,779 18,221
U.S. Government Bond Fund -- -- -- -- -- -- -- 156 156
Intermediate Municipal Bond Fund -- -- -- -- -- -- -- 29 29
Ohio Municipal Bond Fund -- -- -- -- -- -- -- 123 123
Michigan Municipal Bond Fund -- -- -- -- -- -- -- 52 52
As of July 31, 2006, 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 $ 9,866 $21,741 -- -- $31,607
International Equity Fund 1,846 868 $17,397 $5,305 25,416
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, 2006, the fund deferred to August 1, 2006 post October
capital losses, post October currency losses and post October passive foreign
investment company losses of (Amounts in thousands):
CAPITAL
LOSSES
-------
Technology Fund $ 310
Bond Fund 3,390
Intermediate Bond Fund 11,121
Short Term Bond Fund 3,548
U.S. Government Bond Fund 237
Intermediate Municipal Bond Fund 23
Michigan Municipal Bond Fund 249
164
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2006
- --------------------------------------------------------------------------------
(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 July 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.
165
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
--------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET NET GAINS/(LOSSES) NET ASSETS TOTAL
VALUE, INVESTMENT FROM RESULTING NET NET DIVIDENDS
BEGINNING INCOME/ INVESTMENT FROM INVESTMENT REALIZED AND
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $17.86 (0.04) (3.56) (3.60) -- (0.56) (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) (1.73)
Year ended 7/31/05 $15.48 (0.10)@ 3.07 2.97 -- (2.87) (2.87)
Year ended 7/31/06 $15.58 (0.11)@ 0.50 0.39 -- (1.87) (1.87)
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $17.71 (0.07) (3.56) (3.63) -- (0.56) (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) (1.73)
Year ended 7/31/05 $15.18 (0.14)@ 3.00 2.86 -- (2.87) (2.87)
Year ended 7/31/06 $15.17 (0.14)@ 0.49 0.35 -- (1.87) (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) (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) (1.73)
Year ended 7/31/05 $15.02 (0.24)@ 2.94 2.70 -- (2.87) (2.87)
Year ended 7/31/06 $14.85 (0.25)@ 0.48 0.23 -- (1.87) (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) (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) (1.73)
Year ended 7/31/05 $15.03 (0.24)@ 2.94 2.70 -- (2.87) (2.87)
Year ended 7/31/06 $14.86 (0.25)@ 0.49 0.24 -- (1.87) (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) (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) (1.73)
Year ended 7/31/05 $15.25 (0.17)@ 3.00 2.83 -- (2.87) (2.87)
Year ended 7/31/06 $15.21 (0.18)@ 0.49 0.31 -- (1.87) (1.87)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS OF RATIOS OF
NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES
ASSET RETURN ASSETS, TO INVESTMENT TO
VALUE, (EXCLUDES END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
END OF SALES PERIOD NET TO AVERAGE NET TURNOVER
PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $13.70 (20.80%) $485,623 0.93% (0.21%) 0.96% 25%
Year ended 7/31/03 $15.90 16.06% $391,934 0.93% (0.16%) 0.98% 63%
Year ended 7/31/04 $15.48 7.31% $223,439 1.00% (0.72%) 1.00% 95%
Year ended 7/31/05 $15.58 20.81% $213,892 1.01% (0.68%) 1.01% 65%
Year ended 7/31/06 $14.10 2.71% $126,809 1.02% (0.75%) 1.03% 67%
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $13.52 (21.15%) $ 16,468 1.18% (0.46%) 1.21% 25%
Year ended 7/31/03 $15.65 15.75% $ 16,471 1.19% (0.42%) 1.23% 63%
Year ended 7/31/04 $15.18 7.16% $ 25,921 1.25% (0.99%) 1.25% 95%
Year ended 7/31/05 $15.17 20.45% $ 22,714 1.26% (0.93%) 1.26% 65%
Year ended 7/31/06 $13.65 2.50% $ 17,783 1.27% (0.99%) 1.28% 67%
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $13.59 (13.01%)* $ 872 1.93%** (1.25%)** 1.98%** 25%
Year ended 7/31/03 $15.61 14.86% $ 1,407 1.94% (1.17%) 1.98% 63%
Year ended 7/31/04 $15.02 6.30% $ 1,784 2.00% (1.74%) 2.00% 95%
Year ended 7/31/05 $14.85 19.51% $ 1,805 2.01% (1.68%) 2.01% 65%
Year ended 7/31/06 $13.21 1.69% $ 1,414 2.02% (1.74%) 2.03% 67%
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $13.59 (13.01%)* $ 346 1.93%** (1.26%)** 1.97%** 25%
Year ended 7/31/03 $15.62 14.94% $ 436 1.93% (1.16%) 1.98% 63%
Year ended 7/31/04 $15.03 6.29% $ 810 2.00% (1.74%) 2.00% 95%
Year ended 7/31/05 $14.86 19.57% $ 618 2.01% (1.68%) 2.01% 65%
Year ended 7/31/06 $13.23 1.75% $ 384 2.02% (1.75%) 2.03% 67%
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $13.64 (12.69%)* $ 220 1.43%** (0.74%)** 1.48%** 25%
Year ended 7/31/03 $15.75 15.47% $ 469 1.44% (0.66%) 1.48% 63%
Year ended 7/31/04 $15.25 6.84% $ 1,173 1.51% (1.26%) 1.51% 95%
Year ended 7/31/05 $15.21 20.13% $ 1,195 1.51% (1.18%) 1.51% 65%
Year ended 7/31/06 $13.65 2.20% $ 671 1.52% (1.25%) 1.53% 67%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
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 NET GAINS/(LOSSES) NET ASSETS TOTAL
VALUE, INVESTMENT FROM RESULTING NET NET DIVIDENDS
BEGINNING INCOME/ INVESTMENT FROM INVESTMENT REALIZED AND
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $15.10 (0.06) (4.33) (4.39) -- (0.47) (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 -- -- --
Year ended 7/31/06 $16.03 (0.04)@ 0.77 0.73 (0.02) (0.19) (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $14.94 (0.09) (4.27) (4.36) -- (0.47) (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 -- -- --
Year ended 7/31/06 $15.69 (0.08)@ 0.76 0.68 (0.01) (0.19) (0.20)
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $14.86 (0.14) (4.27) (4.41) -- (0.47) (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 -- -- --
Year ended 7/31/06 $15.16 (0.20)@ 0.73 0.53 -- (0.19) (0.19)
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $14.36 (0.18) (4.08) (4.26) -- (0.47) (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 -- -- --
Year ended 7/31/06 $14.61 (0.19)@ 0.71 0.52 -- (0.19) (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) (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 -- -- --
Year ended 7/31/06 $15.56 (0.12)@ 0.75 0.63 -- (0.19) (0.19)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS OF RATIOS OF
NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES
ASSET RETURN ASSETS, TO INVESTMENT TO
VALUE, (EXCLUDES END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
END OF SALES PERIOD NET TO AVERAGE NET TURNOVER
PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- -------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $10.24 (30.02%) $207,807 1.12% (0.49%) 1.14% 27%
Year ended 7/31/03 $12.02 17.38% $335,285 1.10% (0.65%) 1.10% 25%
Year ended 7/31/04 $12.96 7.82% $335,815 1.09% (0.68%) 1.09% 83%
Year ended 7/31/05 $16.03 23.69% $392,929 1.09% (0.03%) 1.09% 54%
Year ended 7/31/06 $16.55 4.56% $318,133 1.08% (0.24%) 1.08% 69%
- -------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $10.11 (30.21%) $ 30,165 1.36% (0.74%) 1.39% 27%
Year ended 7/31/03 $11.82 17.03% $ 35,504 1.35% (0.89%) 1.35% 25%
Year ended 7/31/04 $12.72 7.61% $ 49,586 1.34% (0.93%) 1.34% 83%
Year ended 7/31/05 $15.69 23.35% $ 41,921 1.34% (0.29%) 1.34% 54%
Year ended 7/31/06 $16.17 4.34% $ 34,437 1.33% (0.49%) 1.33% 69%
- -------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $ 9.98 (30.65%) $ 5,008 2.12% (1.51%) 2.15% 27%
Year ended 7/31/03 $11.59 16.13% $ 5,846 2.10% (1.64%) 2.10% 25%
Year ended 7/31/04 $12.38 6.82% $ 6,730 2.09% (1.68%) 2.09% 83%
Year ended 7/31/05 $15.16 22.46% $ 6,874 2.09% (1.03%) 2.09% 54%
Year ended 7/31/06 $15.50 3.51% $ 6,507 2.08% (1.24%) 2.08% 69%
- -------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $ 9.63 (30.67%) $ 1,061 2.12% (1.49%) 2.14% 27%
Year ended 7/31/03 $11.17 15.99% $ 1,525 2.10% (1.64%) 2.10% 25%
Year ended 7/31/04 $11.94 6.89% $ 1,700 2.09% (1.68%) 2.09% 83%
Year ended 7/31/05 $14.61 22.36% $ 1,600 2.09% (1.03%) 2.09% 54%
Year ended 7/31/06 $14.94 3.57% $ 1,122 2.08% (1.22%) 2.08% 69%
- -------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $10.09 (19.75%)* $ 145 1.68%** (1.06%)** 1.71%** 27%
Year ended 7/31/03 $11.78 16.75% $ 240 1.60% (1.14%) 1.60% 25%
Year ended 7/31/04 $12.65 7.39% $ 962 1.59% (1.17%) 1.59% 83%
Year ended 7/31/05 $15.56 23.00% $ 1,218 1.59% (0.52%) 1.59% 54%
Year ended 7/31/06 $16.00 4.07% $ 813 1.58% (0.72%) 1.58% 69%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
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 NET GAINS/(LOSSES) NET ASSETS TOTAL
VALUE, INVESTMENT FROM RESULTING NET NET DIVIDENDS
BEGINNING INCOME/ INVESTMENT FROM INVESTMENT REALIZED AND
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $18.48 (0.04) (4.94) (4.98) -- (0.59) (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) -- (0.04)
Year ended 7/31/06 $16.34 (0.03)@ (0.64) (0.67) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $18.33 (0.08) (4.89) (4.97) -- (0.59) (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) -- (0.03)
Year ended 7/31/06 $16.05 (0.07)@ (0.62) (0.69) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $18.23 (0.16) (4.88) (5.04) -- (0.59) (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 --^ -- --^
Year ended 7/31/06 $15.52 (0.18)@ (0.60) (0.78) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $17.78 (0.20) (4.71) (4.91) -- (0.59) (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 --^ -- --^
Year ended 7/31/06 $15.12 (0.18)@ (0.58) (0.76) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $16.79 (0.03) (3.42) (3.45) -- (0.59) (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) -- (0.02)
Year ended 7/31/06 $15.92 (0.11)@ (0.62) (0.73) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS OF RATIOS OF
NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES
ASSET RETURN ASSETS, TO INVESTMENT TO
VALUE, (EXCLUDES END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
END OF SALES PERIOD NET TO AVERAGE NET TURNOVER
PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- -------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $12.91 (27.90%) $566,235 1.09% (0.24%) 1.09% 20%
Year ended 7/31/03 $14.23 10.23% $795,988 1.08% 0.05% 1.08% 19%
Year ended 7/31/04 $14.61 2.67% $882,256 1.07% (0.24%) 1.07% 35%
Year ended 7/31/05 $16.34 12.13% $707,766 1.08% 0.16% 1.08% 71%
Year ended 7/31/06 $15.67 (4.10%) $616,737 1.08% (0.18%) 1.08% 108%
- -------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $12.77 (28.08%) $221,972 1.34% (0.49%) 1.34% 20%
Year ended 7/31/03 $14.04 9.95% $211,221 1.33% (0.19%) 1.33% 19%
Year ended 7/31/04 $14.38 2.42% $220,904 1.32% (0.49%) 1.32% 35%
Year ended 7/31/05 $16.05 11.83% $165,836 1.33% (0.08%) 1.33% 71%
Year ended 7/31/06 $15.36 (4.30%) $114,828 1.33% (0.42%) 1.33% 108%
- -------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $12.60 (28.63%) $ 19,678 2.10% (1.25%) 2.10% 20%
Year ended 7/31/03 $13.75 9.13% $ 20,700 2.08% (0.94%) 2.08% 19%
Year ended 7/31/04 $13.99 1.75% $ 20,947 2.07% (1.24%) 2.07% 35%
Year ended 7/31/05 $15.52 10.95% $ 17,791 2.08% (0.85%) 2.08% 71%
Year ended 7/31/06 $14.74 (5.03%) $ 13,259 2.08% (1.18%) 2.08% 108%
- -------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $12.28 (28.62%) $ 8,044 2.09% (1.24%) 2.09% 20%
Year ended 7/31/03 $13.40 9.12% $ 8,380 2.08% (0.94%) 2.08% 19%
Year ended 7/31/04 $13.63 1.72% $ 7,536 2.07% (1.24%) 2.07% 35%
Year ended 7/31/05 $15.12 10.95% $ 5,238 2.08% (0.83%) 2.08% 71%
Year ended 7/31/06 $14.36 (5.03%) $ 3,199 2.08% (1.17%) 2.08% 108%
- -------------------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $12.75 (19.05%)* $ 366 1.69%** (0.80%)** 1.69%** 20%
Year ended 7/31/03 $13.98 9.65% $ 1,205 1.58% (0.48%) 1.58% 19%
Year ended 7/31/04 $14.29 2.22% $ 3,127 1.57% (0.75%) 1.57% 35%
Year ended 7/31/05 $15.92 11.57% $ 3,257 1.58% (0.38%) 1.58% 71%
Year ended 7/31/06 $15.19 (4.59%) $ 1,877 1.58% (0.67%) 1.58% 108%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
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 TOTAL
VALUE, NET FROM RESULTING NET NET DIVIDENDS
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED AND
OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $15.17 0.08 (3.66) (3.58) (0.08) (0.31) (0.39)
Year ended 7/31/03 $11.20 0.12 0.63 0.75 (0.11) -- (0.11)
Year ended 7/31/04 $11.84 0.12 1.36 1.48 (0.12) -- (0.12)
Year ended 7/31/05 $13.20 0.18 1.76 1.94 (0.18) (0.35) (0.53)
Year ended 7/31/06 $14.61 0.17 0.72 0.89 (0.16) (0.18) (0.34)
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 7/31/02 $15.02 0.05 (3.62) (3.57) (0.07) (0.31) (0.38)
Year ended 7/31/03 $11.07 0.08 0.64 0.72 (0.09) -- (0.09)
Year ended 7/31/04 $11.70 0.07 1.36 1.43 (0.09) -- (0.09)
Year ended 7/31/05 $13.04 0.14 1.73 1.87 (0.14) (0.35) (0.49)
Year ended 7/31/06 $14.42 0.13 0.71 0.84 (0.12) (0.18) (0.30)
- ------------------------------------------------------------------------------------------------------------------------------------
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) (0.35)
Year ended 7/31/03 $11.12 --^ 0.65 0.65 (0.02) -- (0.02)
Year ended 7/31/04 $11.75 (0.02) 1.36 1.34 (0.01) -- (0.01)
Year ended 7/31/05 $13.08 0.04 1.74 1.78 (0.05) (0.35) (0.40)
Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18) (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
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) (0.34)
Year ended 7/31/03 $11.15 0.01 0.63 0.64 (0.03) -- (0.03)
Year ended 7/31/04 $11.76 (0.01) 1.35 1.34 (0.02) -- (0.02)
Year ended 7/31/05 $13.08 0.03 1.74 1.77 (0.04) (0.35) (0.39)
Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18) (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $14.61 0.09 0.73 0.82 (0.09) (0.18) (0.27)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS OF RATIOS OF
NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES
ASSET RETURN ASSETS, TO INVESTMENT TO
VALUE, (EXCLUDES END OF AVERAGE INCOME AVERAGE PORTFOLIO
END OF SALES PERIOD NET TO AVERAGE NET TURNOVER
PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $11.20 (24.07%) $520,727 0.93% 0.64% 0.97% 5%
Year ended 7/31/03 $11.84 6.79% $181,278 0.92% 0.99% 0.99% 13%
Year ended 7/31/04 $13.20 12.50% $ 90,222 0.92% 0.84% 1.04% 101%
Year ended 7/31/05 $14.61 14.92% $169,723 0.92% 1.17% 1.05% 102%
Year ended 7/31/06 $15.16 6.12% $166,510 0.92% 1.09% 1.03% 126%
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 7/31/02 $11.07 (24.25%) $ 23,320 1.18% 0.38% 1.22% 5%
Year ended 7/31/03 $11.70 6.56% $ 21,288 1.17% 0.72% 1.24% 13%
Year ended 7/31/04 $13.04 12.21% $ 25,573 1.17% 0.58% 1.29% 101%
Year ended 7/31/05 $14.42 14.58% $ 24,026 1.17% 0.99% 1.31% 102%
Year ended 7/31/06 $14.96 5.84% $ 20,923 1.17% 0.85% 1.27% 126%
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $11.12 (15.86%)* $ 361 1.93%** (0.36%)** 1.99%** 5%
Year ended 7/31/03 $11.75 5.90% $ 557 1.92% (0.05%) 1.98% 13%
Year ended 7/31/04 $13.08 11.47% $ 783 1.92% (0.17%) 2.04% 101%
Year ended 7/31/05 $14.46 13.67% $ 1,007 1.92% 0.18% 2.06% 102%
Year ended 7/31/06 $14.98 5.07% $ 953 1.92% 0.09% 2.03% 126%
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $11.15 (15.66%)* $ 20 1.90%** (0.12%)** 1.97%** 5%
Year ended 7/31/03 $11.76 5.72% $ 29 1.92% (0.04%) 1.99% 13%
Year ended 7/31/04 $13.08 11.38% $ 158 1.92% (0.23%) 2.03% 101%
Year ended 7/31/05 $14.46 13.73% $ 193 1.92% 0.21% 2.06% 102%
Year ended 7/31/06 $14.98 5.07% $ 112 1.92% 0.13% 2.02% 126%
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $15.16 5.63% $ 3 1.42% 0.58% 1.57% 126%
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
172-173 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 23.11 0.23 (5.70) (5.47)
Year ended 7/31/03 $ 17.42 0.24 1.51 1.75
Year ended 7/31/04 $ 18.93 0.29@ 2.12 2.41
Year ended 7/31/05 $ 21.01 0.44@ 2.45 2.89
Year ended 7/31/06 $ 23.46 0.42@ 0.79 1.21
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
Year ended 7/31/02 $ 23.10 0.17 (5.69) (5.52)
Year ended 7/31/03 $ 17.38 0.20 1.50 1.70
Year ended 7/31/04 $ 18.87 0.25@ 2.10 2.35
Year ended 7/31/05 $ 20.94 0.37@ 2.46 2.83
Year ended 7/31/06 $ 23.38 0.36@ 0.80 1.16
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 21.07 0.06 (3.69) (3.63)
Year ended 7/31/03 $ 17.32 0.07 1.50 1.57
Year ended 7/31/04 $ 18.78 0.09@ 2.09 2.18
Year ended 7/31/05 $ 20.83 0.20@ 2.44 2.64
Year ended 7/31/06 $ 23.24 0.18@ 0.79 0.97
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 21.07 0.10 (3.73) (3.63)
Year ended 7/31/03 $ 17.33 0.08 1.49 1.57
Year ended 7/31/04 $ 18.78 0.09@ 2.10 2.19
Year ended 7/31/05 $ 20.84 0.20@ 2.44 2.64
Year ended 7/31/06 $ 23.26 0.18@ 0.78 0.96
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 21.07 0.13 (3.67) (3.54)
Year ended 7/31/03 $ 17.39 0.18 1.48 1.66
Year ended 7/31/04 $ 18.86 0.20@ 2.10 2.30
Year ended 7/31/05 $ 20.92 0.31@ 2.45 2.76
Year ended 7/31/06 $ 23.35 0.30@ 0.79 1.09
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND SELECT SHARES
10/20/03(d) to 7/31/04 $ 19.86 0.22@ 1.18 1.40
Year ended 7/31/05 $ 21.00 0.41@ 2.47 2.88
Year ended 7/31/06 $ 23.45 0.40@ 0.80 1.20
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03(d) to 7/31/04 $ 19.86 0.22@ 1.18 1.40
Year ended 7/31/05 $ 21.01 0.43@ 2.41 2.84
Year ended 7/31/06 $ 23.45 0.39@ 0.79 1.18
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND TRUST SHARES
10/20/03(d) to 7/31/04 $ 19.86 0.20@ 1.18 1.38
Year ended 7/31/05 $ 21.01 0.37@ 2.46 2.83
Year ended 7/31/06 $ 23.45 0.36@ 0.79 1.15
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.22) -- (0.22) $ 17.42 (23.82%)
Year ended 7/31/03 (0.24) -- (0.24) $ 18.93 10.22%
Year ended 7/31/04 (0.33) -- (0.33) $ 21.01 12.75%
Year ended 7/31/05 (0.44) -- (0.44) $ 23.46 13.86%
Year ended 7/31/06 (0.43) -- (0.43) $ 24.24 5.21%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
Year ended 7/31/02 (0.20) -- (0.20) $ 17.38 (24.03%)
Year ended 7/31/03 (0.21) -- (0.21) $ 18.87 9.90%
Year ended 7/31/04 (0.28) -- (0.28) $ 20.94 12.48%
Year ended 7/31/05 (0.39) -- (0.39) $ 23.38 13.58%
Year ended 7/31/06 (0.38) -- (0.38) $ 24.16 4.97%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.12) -- (0.12) $ 17.32 (15.32%)*
Year ended 7/31/03 (0.11) -- (0.11) $ 18.78 9.14%
Year ended 7/31/04 (0.13) -- (0.13) $ 20.83 11.64%
Year ended 7/31/05 (0.23) -- (0.23) $ 23.24 12.74%
Year ended 7/31/06 (0.20) -- (0.20) $ 24.01 4.17%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.11) -- (0.11) $ 17.33 (15.30%)*
Year ended 7/31/03 (0.12) -- (0.12) $ 18.78 9.14%
Year ended 7/31/04 (0.13) -- (0.13) $ 20.84 11.66%
Year ended 7/31/05 (0.22) -- (0.22) $ 23.26 12.72%
Year ended 7/31/06 (0.19) -- (0.19) $ 24.03 4.15%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.14) -- (0.14) $ 17.39 (14.89%)*
Year ended 7/31/03 (0.19) -- (0.19) $ 18.86 9.68%
Year ended 7/31/04 (0.24) -- (0.24) $ 20.92 12.21%
Year ended 7/31/05 (0.33) -- (0.33) $ 23.35 13.28%
Year ended 7/31/06 (0.31) -- (0.31) $ 24.13 4.70%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND SELECT SHARES
10/20/03(d) to 7/31/04 (0.26) -- (0.26) $ 21.00 7.03%*
Year ended 7/31/05 (0.43) -- (0.43) $ 23.45 13.79%
Year ended 7/31/06 (0.42) -- (0.42) $ 24.23 5.13%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND PREFERRED SHARES
10/20/03(d) to 7/31/04 (0.25) -- (0.25) $ 21.01 7.03%*
Year ended 7/31/05 (0.40) -- (0.40) $ 23.45 13.62%
Year ended 7/31/06 (0.40) -- (0.40) $ 24.23 5.06%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND TRUST SHARES
10/20/03(d) to 7/31/04 (0.23) -- (0.23) $ 21.01 6.95%*
Year ended 7/31/05 (0.39) -- (0.39) $ 23.45 13.53%
Year ended 7/31/06 (0.37) -- (0.37) $ 24.23 4.95%
- ------------------------------------------------------------------------------------------------------------------------------------
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 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%
Year ended 7/31/06 $ 184,177 0.19% 1.75% 0.60% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 65,204 0.44% 1.52% 0.85% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 4,229 1.19% 0.76% 1.60% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 1,998 1.19% 0.77% 1.60% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 1,819 0.69% 1.26% 1.10% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 17,558 0.27% 1.67% 0.68% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 64,939 0.34% 1.62% 0.75% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 67,747 0.44% 1.52% 0.85% 6%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
174-175 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND INSTITUTIONAL SHARES
Year ended 7/31/02(e) $ 13.39 0.14 (2.27) (2.13)
Year ended 7/31/03 $ 10.91 0.15 0.49 0.64
Year ended 7/31/04 $ 11.38 0.13 0.64 0.77
Year ended 7/31/05 $ 12.00 0.24 0.80 1.04
Year ended 7/31/06 $ 12.79 0.25 (0.44) (0.19)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
Year ended 7/31/02(e) $ 13.35 0.12 (2.27) (2.15)
Year ended 7/31/03 $ 10.86 0.13 0.48 0.61
Year ended 7/31/04 $ 11.32 0.10 0.63 0.73
Year ended 7/31/05 $ 11.93 0.21 0.79 1.00
Year ended 7/31/06 $ 12.71 0.22 (0.43) (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
Year ended 7/31/02(e) $ 13.28 0.02 (2.24) (2.22)
Year ended 7/31/03 $ 10.75 0.04 0.48 0.52
Year ended 7/31/04 $ 11.19 0.01 0.63 0.64
Year ended 7/31/05 $ 11.80 0.11 0.79 0.90
Year ended 7/31/06 $ 12.57 0.12 (0.44) (0.32)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
Year ended 7/31/02(e) $ 13.26 0.02 (2.24) (2.22)
Year ended 7/31/03 $ 10.73 0.04 0.48 0.52
Year ended 7/31/04 $ 11.17 0.01 0.63 0.64
Year ended 7/31/05 $ 11.78 0.11 0.79 0.90
Year ended 7/31/06 $ 12.55 0.12 (0.44) (0.32)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) $ 12.58 0.07 (1.50) (1.43)
Year ended 7/31/03 $ 10.84 0.10 0.49 0.59
Year ended 7/31/04 $ 11.30 0.06 0.64 0.70
Year ended 7/31/05 $ 11.91 0.17 0.79 0.96
Year ended 7/31/06 $ 12.68 0.18 (0.43) (0.25)
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND INSTITUTIONAL SHARES
Year ended 7/31/02(e) (0.15) (0.20) (0.35) $ 10.91 (16.34%)
Year ended 7/31/03 (0.17) -- (0.17) $ 11.38 5.94%
Year ended 7/31/04 (0.15) -- (0.15) $ 12.00 6.76%
Year ended 7/31/05 (0.25) -- (0.25) $ 12.79 8.73%
Year ended 7/31/06 (0.25) -- (0.25) $ 12.35 (1.51%)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
Year ended 7/31/02(e) (0.14) (0.20) (0.34) $ 10.86 (16.53%)
Year ended 7/31/03 (0.15) -- (0.15) $ 11.32 5.57%
Year ended 7/31/04 (0.12) -- (0.12) $ 11.93 6.52%
Year ended 7/31/05 (0.22) -- (0.22) $ 12.71 8.41%
Year ended 7/31/06 (0.22) -- (0.22) $ 12.28 (1.71%)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
Year ended 7/31/02(e) (0.11) (0.20) (0.31) $ 10.75 (17.14%)
Year ended 7/31/03 (0.08) -- (0.08) $ 11.19 4.87%
Year ended 7/31/04 (0.03) -- (0.03) $ 11.80 5.72%
Year ended 7/31/05 (0.13) -- (0.13) $ 12.57 7.61%
Year ended 7/31/06 (0.12) -- (0.12) $ 12.13 (2.57%)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
Year ended 7/31/02(e) (0.11) (0.20) (0.31) $ 10.73 (17.16%)
Year ended 7/31/03 (0.08) -- (0.08) $ 11.17 4.90%
Year ended 7/31/04 (0.03) -- (0.03) $ 11.78 5.71%
Year ended 7/31/05 (0.13) -- (0.13) $ 12.55 7.62%
Year ended 7/31/06 (0.12) -- (0.12) $ 12.11 (2.56%)
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) (0.11) (0.20) (0.31) $ 10.84 (9.24%)*
Year ended 7/31/03 (0.13) -- (0.13) $ 11.30 5.39%
Year ended 7/31/04 (0.09) -- (0.09) $ 11.91 6.31%
Year ended 7/31/05 (0.19) -- (0.19) $ 12.68 8.08%
Year ended 7/31/06 (0.18) -- (0.18) $ 12.25 (1.97%)
- ------------------------------------------------------------------------------------------------------------------------------------
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 7/31/02(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%
Year ended 7/31/06 $ 35,740 0.97% 1.86% 1.22% 191%
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 37,286 1.22% 1.61% 1.47% 191%
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
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%
Year ended 7/31/06 $ 7,536 1.97% 0.86% 2.22% 191%
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
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%
Year ended 7/31/06 $ 1,669 1.97% 0.86% 2.21% 191%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 123 1.47% 1.37% 1.72% 191%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
176-177 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/01 $ 4.91 0.01 1.11 1.12
1/1/02 to 7/31/02(c) $ 6.03 (0.01) (0.13) (0.14)
Year ended 7/31/03 $ 5.89 (0.04)@ 2.40 2.36
Year ended 7/31/04 $ 8.20 (0.02)@ 2.66 2.64
Year ended 7/31/05 $ 10.32 (0.01)@ 1.41 1.40
Year ended 7/31/06 $ 11.00 0.02@ 0.17 0.19
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03
1/1/02 to 7/31/02(c) $ 5.96 (0.02) (0.12) (0.14)
Year ended 7/31/03 $ 5.82 (0.06)@ 2.37 2.31
Year ended 7/31/04 $ 8.08 (0.05)@ 2.63 2.58
Year ended 7/31/05 $ 10.14 (0.03)@ 1.39 1.36
Year ended 7/31/06 $ 10.78 --^@ 0.15 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.03 0.02
1/1/02 to 7/31/02(c) $ 5.95 (0.03) (0.13) (0.16)
Year ended 7/31/03 $ 5.79 (0.10)@ 2.33 2.23
Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51
Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32
Year ended 7/31/06 $ 10.56 (0.06)@ 0.15 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03
1/1/02 to 7/31/02(c) $ 5.96 (0.03) (0.14) (0.17)
Year ended 7/31/03 $ 5.79 (0.10)@ 2.33 2.23
Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51
Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32
Year ended 7/31/06 $ 10.56 (0.06)@ 0.15 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/01 $ 4.88 (0.02) 1.10 1.08
1/1/02 to 7/31/02(c) $ 5.96 (0.04) (0.11) (0.15)
Year ended 7/31/03 $ 5.81 (0.07)@ 2.36 2.29
Year ended 7/31/04 $ 8.05 (0.06)@ 2.62 2.56
Year ended 7/31/05 $ 10.09 (0.03)@ 1.37 1.34
Year ended 7/31/06 $ 10.71 (0.03)@ 0.16 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/05 $ 20.01 (0.04)@ 4.51 4.47
Year ended 7/31/06 $ 22.82 0.09 0.46 0.55
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/05 $ 19.95 (0.10)@ 4.49 4.39
Year ended 7/31/06 $ 22.68 0.02 0.47 0.49
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/05 $ 19.76 (0.24)@ 4.43 4.19
Year ended 7/31/06 $ 22.29 (0.13) 0.45 0.32
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/05 $ 19.74 (0.24)@ 4.41 4.17
Year ended 7/31/06 $ 22.25 (0.14) 0.46 0.32
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/05 $ 19.89 (0.15)@ 4.48 4.33
Year ended 7/31/06 $ 22.56 (0.02) 0.45 0.43
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/01 -- --^ --^ $ 6.03 22.90%
1/1/02 to 7/31/02(c) -- -- -- $ 5.89 (2.32%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 8.20 40.26%
Year ended 7/31/04 -- (0.52) (0.52) $ 10.32 32.84%
Year ended 7/31/05 -- (0.72) (0.72) $ 11.00 13.86%
Year ended 7/31/06 (0.01) (3.13) (3.14) $ 8.05 1.93%
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 -- -- -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- -- -- $ 5.82 (2.35%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 8.08 39.88%
Year ended 7/31/04 -- (0.52) (0.52) $ 10.14 32.56%
Year ended 7/31/05 -- (0.72) (0.72) $ 10.78 13.60%
Year ended 7/31/06 --^ (3.13) (3.13) $ 7.80 1.59%
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 -- -- -- $ 5.95 0.39%*
1/1/02 to 7/31/02(c) -- -- -- $ 5.79 (2.69%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 7.97 38.70%
Year ended 7/31/04 -- (0.52) (0.52) $ 9.96 32.13%
Year ended 7/31/05 -- (0.72) (0.72) $ 10.56 13.54%
Year ended 7/31/06 -- (3.13) (3.13) $ 7.52 0.86%
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 -- -- -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- -- -- $ 5.79 (2.85%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 7.97 38.70%
Year ended 7/31/04 -- (0.52) (0.52) $ 9.96 32.13%
Year ended 7/31/05 -- (0.72) (0.72) $ 10.56 13.54%
Year ended 7/31/06 -- (3.13) (3.13) $ 7.52 0.86%
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/01 -- --^ --^ $ 5.96 22.22%
1/1/02 to 7/31/02(c) -- -- -- $ 5.81 (2.52%)*
Year ended 7/31/03 -- (0.05) (0.05) $ 8.05 39.60%
Year ended 7/31/04 -- (0.52) (0.52) $ 10.09 32.44%
Year ended 7/31/05 -- (0.72) (0.72) $ 10.71 13.57%
Year ended 7/31/06 -- (3.13) (3.13) $ 7.71 1.30%
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND INSTITUTIONAL SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.54 16.87%*
Year ended 7/31/04 (0.02) (0.98) (1.00) $ 20.01 20.11%
Year ended 7/31/05 -- (1.66) (1.66) $ 22.82 23.59%
Year ended 7/31/06 (0.05) (2.43) (2.48) $ 20.89 2.62%
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.52 16.73%*
Year ended 7/31/04 --^ (0.98) (0.98) $ 19.95 19.81%
Year ended 7/31/05 -- (1.66) (1.66) $ 22.68 23.24%
Year ended 7/31/06 -- (2.43) (2.43) $ 20.74 2.36%
- ------------------------------------------------------------------------------------------------------------------------------------
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) (0.98) $ 19.76 19.02%
Year ended 7/31/05 -- (1.66) (1.66) $ 22.29 22.35%
Year ended 7/31/06 -- (2.43) (2.43) $ 20.18 1.59%
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.48 16.47%*
Year ended 7/31/04 -- (0.98) (0.98) $ 19.74 18.85%
Year ended 7/31/05 -- (1.66) (1.66) $ 22.25 22.39%
Year ended 7/31/06 -- (2.43) (2.43) $ 20.14 1.59%
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 -- -- -- $ 17.51 16.67%*
Year ended 7/31/04 -- (0.98) (0.98) $ 19.89 19.52%
Year ended 7/31/05 -- (1.66) (1.66) $ 22.56 23.00%
Year ended 7/31/06 -- (2.43) (2.43) $ 20.56 2.10%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $ 72,981 1.37% 0.23% 1.40% 42%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 17,759 1.62% (0.05%) 1.65% 42%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 6,032 2.37% (0.73%) 2.40% 42%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 5,161 2.37% (0.71%) 2.40% 42%
- ------------------------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND ADVISOR SHARES
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%
Year ended 7/31/06 $ 17,297 1.87% (0.34%) 1.90% 42%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 116,503 1.21% 0.39% 1.24% 99%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 2,434 1.46% 0.11% 1.49% 99%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 1,221 2.21% (0.64%) 2.24% 99%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 839 2.21% (0.64%) 2.24% 99%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 1,185 1.71% (0.09%) 1.74% 99%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
178-179 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/01 $ 18.64 0.05 1.43 1.48
1/1/02 to 7/31/02(c) $ 19.14 -- (3.28) (3.28)
Year ended 7/31/03 $ 15.86 0.02 3.14 3.16
Year ended 7/31/04 $ 19.02 0.06 3.62 3.68
Year ended 7/31/05 $ 22.58 0.10 4.85 4.95
Year ended 7/31/06 $ 26.04 0.26 1.77 2.03
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 19.44 0.01 0.57 0.58
1/1/02 to 7/31/02(c) $ 19.05 (0.02) (3.26) (3.28)
Year ended 7/31/03 $ 15.77 --^ 3.08 3.08
Year ended 7/31/04 $ 18.85 --^ 3.59 3.59
Year ended 7/31/05 $ 22.36 0.04 4.79 4.83
Year ended 7/31/06 $ 25.76 0.19 1.77 1.96
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 19.44 (0.02) 0.56 0.54
1/1/02 to 7/31/02(c) $ 19.03 (0.08) (3.26) (3.34)
Year ended 7/31/03 $ 15.69 (0.13) 3.07 2.94
Year ended 7/31/04 $ 18.63 (0.14) 3.52 3.38
Year ended 7/31/05 $ 21.94 (0.14) 4.69 4.55
Year ended 7/31/06 $ 25.11 --^ 1.71 1.71
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 19.44 (0.01) 0.55 0.54
1/1/02 to 7/31/02(c) $ 19.02 (0.08) (3.25) (3.33)
Year ended 7/31/03 $ 15.69 (0.12) 3.04 2.92
Year ended 7/31/04 $ 18.61 (0.13) 3.52 3.39
Year ended 7/31/05 $ 21.93 (0.15) 4.69 4.54
Year ended 7/31/06 $ 25.09 --^ 1.71 1.71
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/01 $ 18.61 0.02 1.37 1.39
1/1/02 to 7/31/02(c) $ 19.09 (0.04) (3.27) (3.31)
Year ended 7/31/03 $ 15.78 (0.05) 3.09 3.04
Year ended 7/31/04 $ 18.82 (0.05) 3.59 3.54
Year ended 7/31/05 $ 22.29 (0.02) 4.77 4.75
Year ended 7/31/06 $ 25.65 0.13 1.75 1.88
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 12/31/01 (0.07) (0.91) (0.98) $ 19.14 7.91%
1/1/02 to 7/31/02(c) -- -- -- $ 15.86 (17.14%)*
Year ended 7/31/03 -- -- -- $ 19.02 19.92%
Year ended 7/31/04 (0.05) (0.07) (0.12) $ 22.58 19.36%
Year ended 7/31/05 (0.11) (1.38) (1.49) $ 26.04 22.51%
Year ended 7/31/06 (0.24) (2.15) (2.39) $ 25.68 8.38%
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 (0.06) (0.91) (0.97) $ 19.05 2.90%*
1/1/02 to 7/31/02(c) -- -- -- $ 15.77 (17.22%)*
Year ended 7/31/03 -- -- -- $ 18.85 19.53%
Year ended 7/31/04 (0.01) (0.07) (0.08) $ 22.36 19.07%
Year ended 7/31/05 (0.05) (1.38) (1.43) $ 25.76 22.22%
Year ended 7/31/06 (0.18) (2.15) (2.33) $ 25.39 8.16%
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 (0.04) (0.91) (0.95) $ 19.03 2.76%*
1/1/02 to 7/31/02(c) -- -- -- $ 15.69 (17.55%)*
Year ended 7/31/03 -- -- -- $ 18.63 18.74%
Year ended 7/31/04 -- (0.07) (0.07) $ 21.94 18.15%
Year ended 7/31/05 -- (1.38) (1.38) $ 25.11 21.33%
Year ended 7/31/06 (0.06) (2.15) (2.21) $ 24.61 7.33%
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 (0.04) (0.92) (0.96) $ 19.02 2.72%*
1/1/02 to 7/31/02(c) -- -- -- $ 15.69 (17.51%)*
Year ended 7/31/03 -- -- -- $ 18.61 18.61%
Year ended 7/31/04 -- (0.07) (0.07) $ 21.93 18.22%
Year ended 7/31/05 -- (1.38) (1.38) $ 25.09 21.24%
Year ended 7/31/06 (0.06) (2.15) (2.21) $ 24.59 7.33%
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/01 -- (0.91) (0.91) $ 19.09 7.47%
1/1/02 to 7/31/02(c) -- -- -- $ 15.78 (17.34%)*
Year ended 7/31/03 -- -- -- $ 18.82 19.26%
Year ended 7/31/04 -- (0.07) (0.07) $ 22.29 18.81%
Year ended 7/31/05 (0.01) (1.38) (1.39) $ 25.65 21.90%
Year ended 7/31/06 (0.12) (2.15) (2.27) $ 25.26 7.87%
- ------------------------------------------------------------------------------------------------------------------------------------
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 12/31/01 $ 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%
Year ended 7/31/06 $ 226,189 1.29% 0.99% 1.31% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 38,714 1.54% 0.74% 1.56% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 21,679 2.29% (0.01%) 2.31% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 4,455 2.29% (0.01%) 2.31% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
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%
Year ended 7/31/06 $ 32,861 1.79% 0.48% 1.81% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
180-181 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
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 13.12 0.09 (1.73) (1.64)
Year ended 7/31/03 $ 10.85 0.18@ 1.14 1.32
Year ended 7/31/04 $ 11.85 0.15 2.08 2.23
Year ended 7/31/05 $ 13.52 0.18 1.95 2.13
Year ended 7/31/06 $ 15.08 0.21 1.07 1.28
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/02 $ 13.11 0.07 (1.74) (1.67)
Year ended 7/31/03 $ 10.83 0.16@ 1.14 1.30
Year ended 7/31/04 $ 11.83 0.12 2.08 2.20
Year ended 7/31/05 $ 13.50 0.14 1.94 2.08
Year ended 7/31/06 $ 15.05 0.17 1.07 1.24
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
Year ended 7/31/02 $ 13.24 (0.02) (1.74) (1.76)
Year ended 7/31/03 $ 10.93 0.08@ 1.15 1.23
Year ended 7/31/04 $ 11.93 0.03 2.09 2.12
Year ended 7/31/05 $ 13.61 0.04 1.95 1.99
Year ended 7/31/06 $ 15.17 0.06 1.08 1.14
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/02 $ 13.10 (0.03) (1.73) (1.76)
Year ended 7/31/03 $ 10.80 0.08@ 1.11 1.19
Year ended 7/31/04 $ 11.76 0.02 2.07 2.09
Year ended 7/31/05 $ 13.40 0.03 1.94 1.97
Year ended 7/31/06 $ 14.94 0.06 1.06 1.12
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 15.05 0.11 1.09 1.20
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.10) (0.53) (0.63) $ 10.85 (12.96%)
Year ended 7/31/03 (0.16) (0.16) (0.32) $ 11.85 12.53%
Year ended 7/31/04 (0.16) (0.40) (0.56) $ 13.52 19.22%
Year ended 7/31/05 (0.18) (0.39) (0.57) $ 15.08 16.07%
Year ended 7/31/06 (0.20) (1.44) (1.64) $ 14.72 9.29%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/02 (0.08) (0.53) (0.61) $ 10.83 (13.24%)
Year ended 7/31/03 (0.14) (0.16) (0.30) $ 11.83 12.30%
Year ended 7/31/04 (0.13) (0.40) (0.53) $ 13.50 18.96%
Year ended 7/31/05 (0.14) (0.39) (0.53) $ 15.05 15.74%
Year ended 7/31/06 (0.16) (1.44) (1.60) $ 14.69 9.05%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
Year ended 7/31/02 (0.02) (0.53) (0.55) $ 10.93 (13.84%)
Year ended 7/31/03 (0.07) (0.16) (0.23) $ 11.93 11.50%
Year ended 7/31/04 (0.04) (0.40) (0.44) $ 13.61 18.07%
Year ended 7/31/05 (0.04) (0.39) (0.43) $ 15.17 14.85%
Year ended 7/31/06 (0.06) (1.44) (1.50) $ 14.81 8.22%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/02 (0.01) (0.53) (0.54) $ 10.80 (13.85%)
Year ended 7/31/03 (0.07) (0.16) (0.23) $ 11.76 11.28%
Year ended 7/31/04 (0.05) (0.40) (0.45) $ 13.40 18.07%
Year ended 7/31/05 (0.04) (0.39) (0.43) $ 14.94 14.96%
Year ended 7/31/06 (0.06) (1.44) (1.50) $ 14.56 8.21%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.15) (1.44) (1.59) $ 14.66 8.72%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (A) RATE (B)
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $ 581,507 1.07% 1.40% 1.07% 57%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 22,968 1.32% 1.16% 1.32% 57%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
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%
Year ended 7/31/06 $ 5,783 2.07% 0.40% 2.07% 57%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
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%
Year ended 7/31/06 $ 2,227 2.07% 0.41% 2.07% 57%
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 148 1.57% 0.84% 1.57% 57%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
182-183 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.04# 1.35# 1.39
Year ended 7/31/04 $ 11.35 0.14# 1.31# 1.45
Year ended 7/31/05 $ 12.49 0.16# 1.94# 2.10
Year ended 7/31/06 $ 14.36 0.21# 0.52# 0.73
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.33# 1.35
Year ended 7/31/04 $ 11.33 0.11# 1.30# 1.41
Year ended 7/31/05 $ 12.45 0.12# 1.95# 2.07
Year ended 7/31/06 $ 14.32 0.17# 0.51# 0.68
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/05 $ 12.30 0.03# 1.90# 1.93
Year ended 7/31/06 $ 14.08 0.06# 0.51# 0.57
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 (0.01)# 1.28# 1.27
Year ended 7/31/04 $ 11.26 0.03# 1.28# 1.31
Year ended 7/31/05 $ 12.30 0.03# 1.90# 1.93
Year ended 7/31/06 $ 14.08 0.06# 0.51# 0.57
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 14.36 0.15# 0.50# 0.65
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.09# 1.58# 1.67
Year ended 7/31/04 $ 11.59 0.19# 1.03# 1.22
Year ended 7/31/05 $ 12.48 0.22# 1.50# 1.72
Year ended 7/31/06 $ 13.91 0.28# 0.34# 0.62
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.07# 1.58# 1.65
Year ended 7/31/04 $ 11.58 0.16# 1.04# 1.20
Year ended 7/31/05 $ 12.47 0.19# 1.49# 1.68
Year ended 7/31/06 $ 13.89 0.26# 0.33# 0.59
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57
Year ended 7/31/04 $ 11.55 0.07# 1.03# 1.10
Year ended 7/31/05 $ 12.42 0.09# 1.48# 1.57
Year ended 7/31/06 $ 13.83 0.15# 0.34# 0.49
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57
Year ended 7/31/04 $ 11.55 0.07# 1.02# 1.09
Year ended 7/31/05 $ 12.41 0.09# 1.49# 1.58
Year ended 7/31/06 $ 13.83 0.15# 0.33# 0.48
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 13.91 0.24# 0.32# 0.56
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, (EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.04) -- (0.04) $ 11.35 13.92%*
Year ended 7/31/04 (0.13) (0.18) (0.31) $ 12.49 12.83%
Year ended 7/31/05 (0.15) (0.08) (0.23) $ 14.36 16.91%
Year ended 7/31/06 (0.20) (0.31) (0.51) $ 14.58 5.13%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.02) -- (0.02) $ 11.33 13.57%*
Year ended 7/31/04 (0.11) (0.18) (0.29) $ 12.45 12.49%
Year ended 7/31/05 (0.12) (0.08) (0.20) $ 14.32 16.59%
Year ended 7/31/06 (0.16) (0.31) (0.47) $ 14.53 4.80%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 --^ -- -- $ 11.26 12.65%*
Year ended 7/31/04 (0.10) (0.18) (0.28) $ 12.30 11.70%
Year ended 7/31/05 (0.07) (0.08) (0.15) $ 14.08 15.73%
Year ended 7/31/06 (0.10) (0.31) (0.41) $ 14.24 4.10%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.01) -- (0.01) $ 11.26 12.74%*
Year ended 7/31/04 (0.09) (0.18) (0.27) $ 12.30 11.67%
Year ended 7/31/05 (0.07) (0.08) (0.15) $ 14.08 15.80%
Year ended 7/31/06 (0.10) (0.31) (0.41) $ 14.24 4.11%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.16) (0.31) (0.47) $ 14.54 4.61%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.08) -- (0.08) $ 11.59 16.78%*
Year ended 7/31/04 (0.19) (0.14) (0.33) $ 12.48 10.54%
Year ended 7/31/05 (0.21) (0.08) (0.29) $ 13.91 13.87%
Year ended 7/31/06 (0.28) (0.27) (0.55) $ 13.98 4.60%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.07) -- (0.07) $ 11.58 16.51%*
Year ended 7/31/04 (0.17) (0.14) (0.31) $ 12.47 10.32%
Year ended 7/31/05 (0.18) (0.08) (0.26) $ 13.89 13.53%
Year ended 7/31/06 (0.25) (0.27) (0.52) $ 13.96 4.36%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.02) -- (0.02) $ 11.55 15.70%*
Year ended 7/31/04 (0.09) (0.14) (0.23) $ 12.42 9.47%
Year ended 7/31/05 (0.08) (0.08) (0.16) $ 13.83 12.68%
Year ended 7/31/06 (0.15) (0.27) (0.42) $ 13.90 3.63%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.02) -- (0.02) $ 11.55 15.71%*
Year ended 7/31/04 (0.09) (0.14) (0.23) $ 12.41 9.45%
Year ended 7/31/05 (0.08) (0.08) (0.16) $ 13.83 12.75%
Year ended 7/31/06 (0.15) (0.27) (0.42) $ 13.89 3.53%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.25) (0.27) (0.52) $ 13.95 4.11%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 101,365 0.08% 1.38% 0.48% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 50,416 0.33% 1.15% 0.72% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 16,926 1.08% 0.39% 1.47% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 2,661 1.08% 0.37% 1.47% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 785 0.58% 0.41% 1.00% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 135,542 0.08% 2.09% 0.45% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 128,564 0.33% 1.86% 0.70% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 53,395 1.08% 1.10% 1.45% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 8,196 1.08% 1.11% 1.45% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 1,370 0.58% 1.48% 0.97% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
184-185 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 MODERATE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.14# 0.92# 1.06
Year ended 7/31/04 $ 10.93 0.21# 0.76# 0.97
Year ended 7/31/05 $ 11.57 0.27# 0.97# 1.24
Year ended 7/31/06 $ 12.52 0.33# 0.15# 0.48
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.12# 0.92# 1.04
Year ended 7/31/04 $ 10.93 0.19# 0.74# 0.93
Year ended 7/31/05 $ 11.56 0.24# 0.96# 1.20
Year ended 7/31/06 $ 12.50 0.30# 0.15# 0.45
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.89# 0.95
Year ended 7/31/04 $ 10.89 0.12# 0.73# 0.85
Year ended 7/31/05 $ 11.51 0.14# 0.97# 1.11
Year ended 7/31/06 $ 12.45 0.21# 0.14# 0.35
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.90# 0.96
Year ended 7/31/04 $ 10.90 0.12# 0.73# 0.85
Year ended 7/31/05 $ 11.51 0.15# 0.96# 1.11
Year ended 7/31/06 $ 12.45 0.21# 0.14# 0.35
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 12.52 0.29# 0.11# 0.40
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.18# 0.60# 0.78
Year ended 7/31/04 $ 10.62 0.27# 0.51# 0.78
Year ended 7/31/05 $ 10.95 0.27# 0.73# 1.00
Year ended 7/31/06 $ 11.59 0.34# 0.04# 0.38
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.59# 0.74
Year ended 7/31/04 $ 10.60 0.22# 0.53# 0.75
Year ended 7/31/05 $ 10.93 0.25# 0.73# 0.98
Year ended 7/31/06 $ 11.58 0.32# 0.03# 0.35
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.10# 0.58# 0.68
Year ended 7/31/04 $ 10.58 0.14# 0.53# 0.67
Year ended 7/31/05 $ 10.90 0.17# 0.72# 0.89
Year ended 7/31/06 $ 11.54 0.24# 0.02# 0.26
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $ 10.00 0.09# 0.59# 0.68
Year ended 7/31/04 $ 10.59 0.14# 0.52# 0.66
Year ended 7/31/05 $ 10.90 0.17# 0.72# 0.89
Year ended 7/31/06 $ 11.54 0.24# 0.03# 0.27
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 11.59 0.25# 0.07# 0.32
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.13) -- (0.13) $ 10.93 10.66%*
Year ended 7/31/04 (0.21) (0.12) (0.33) $ 11.57 8.84%
Year ended 7/31/05 (0.26) (0.03) (0.29) $ 12.52 10.79%
Year ended 7/31/06 (0.33) (0.24) (0.57) $ 12.43 3.90%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.11) -- (0.11) $ 10.93 10.48%*
Year ended 7/31/04 (0.18) (0.12) (0.30) $ 11.56 8.53%
Year ended 7/31/05 (0.23) (0.03) (0.26) $ 12.50 10.43%
Year ended 7/31/06 (0.30) (0.24) (0.54) $ 12.41 3.65%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.06) -- (0.06) $ 10.89 9.58%*
Year ended 7/31/04 (0.11) (0.12) (0.23) $ 11.51 7.80%
Year ended 7/31/05 (0.14) (0.03) (0.17) $ 12.45 9.58%
Year ended 7/31/06 (0.21) (0.24) (0.45) $ 12.35 2.82%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.06) -- (0.06) $ 10.90 9.67%*
Year ended 7/31/04 (0.12) (0.12) (0.24) $ 11.51 7.76%
Year ended 7/31/05 (0.14) (0.03) (0.17) $ 12.45 9.64%
Year ended 7/31/06 (0.20) (0.24) (0.44) $ 12.36 2.88%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.29) (0.24) (0.53) $ 12.39 3.27%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.16) -- (0.16) $ 10.62 7.87%*
Year ended 7/31/04 (0.25) (0.20) (0.45) $ 10.95 7.39%
Year ended 7/31/05 (0.27) (0.09) (0.36) $ 11.59 9.24%
Year ended 7/31/06 (0.34) (0.27) (0.61) $ 11.36 3.39%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.14) -- (0.14) $ 10.60 7.51%*
Year ended 7/31/04 (0.22) (0.20) (0.42) $ 10.93 7.15%
Year ended 7/31/05 (0.24) (0.09) (0.33) $ 11.58 8.97%
Year ended 7/31/06 (0.31) (0.27) (0.58) $ 11.35 3.14%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.10) -- (0.10) $ 10.58 6.81%*
Year ended 7/31/04 (0.15) (0.20) (0.35) $ 10.90 6.35%
Year ended 7/31/05 (0.16) (0.09) (0.25) $ 11.54 8.10%
Year ended 7/31/06 (0.23) (0.27) (0.50) $ 11.30 2.28%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.09) -- (0.09) $ 10.59 6.81%*
Year ended 7/31/04 (0.15) (0.20) (0.35) $ 10.90 6.29%
Year ended 7/31/05 (0.16) (0.09) (0.25) $ 11.54 8.18%
Year ended 7/31/06 (0.22) (0.27) (0.49) $ 11.32 2.43%
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.31) (0.27) (0.58) $ 11.33 2.84%
- -----------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 369,903 0.08% 2.70% 0.43% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 100,588 0.33% 2.46% 0.68% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 43,234 1.08% 1.70% 1.43% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 6,495 1.08% 1.70% 1.43% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 422 0.58% 2.13% 0.94% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 42,683 0.08% 3.05% 0.50% 22%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 37,479 0.33% 2.80% 0.75% 22%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 20,488 1.08% 2.05% 1.50% 22%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 3,058 1.08% 2.05% 1.50% 22%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 62 0.58% 2.76% 1.01% 22%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
186-187 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
Year ended 7/31/06 $ 10.92 0.40#@ (0.09)# 0.31
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 10.90 0.37#@ (0.09)# 0.28
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 10.87 0.29#@ (0.09)# 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 10.88 0.29#@ (0.11)# 0.18
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 10.92 0.36#@ (0.12)# 0.24
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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
Year ended 7/31/06 $ 11.54 0.52@ (0.23) 0.29
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 11.51 0.48@ (0.22) 0.26
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 11.51 0.40@ (0.23) 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 11.43 0.40@ (0.23) 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
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
Year ended 7/31/06 $ 11.50 0.45@ (0.22) 0.23
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET RETURN DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED OF AND END OF SALES
INCOME GAINS CAPITAL DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES
8/1/02(d) to 7/31/03 (0.21) -- -- (0.21) $10.54 7.58%*
Year ended 7/31/04 (0.29) (0.16) -- (0.45) $10.66 5.44%
Year ended 7/31/05 (0.32) (0.09) -- (0.41) $10.92 6.38%
Year ended 7/31/06 (0.40) (0.11) -- (0.51) $10.72 2.88%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.19) -- -- (0.19) $10.53 7.31%*
Year ended 7/31/04 (0.27) (0.16) -- (0.43) $10.64 5.11%
Year ended 7/31/05 (0.29) (0.09) -- (0.38) $10.90 6.13%
Year ended 7/31/06 (0.37) (0.11) -- (0.48) $10.70 2.62%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.15) -- -- (0.15) $10.50 6.54%*
Year ended 7/31/04 (0.19) (0.16) -- (0.35) $10.61 4.37%
Year ended 7/31/05 (0.21) (0.09) -- (0.30) $10.87 5.34%
Year ended 7/31/06 (0.29) (0.11) -- (0.40) $10.67 1.83%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.14) -- -- (0.14) $10.51 6.58%*
Year ended 7/31/04 (0.20) (0.16) -- (0.36) $10.61 4.34%
Year ended 7/31/05 (0.21) (0.09) -- (0.30) $10.88 5.30%
Year ended 7/31/06 (0.28) (0.11) -- (0.39) $10.67 1.72%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.36) (0.11) -- (0.47) $10.69 2.27%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
Year ended 12/31/01 (0.67) -- --^ (0.67) $10.57 13.12%
1/1/02 to 7/31/02(c) (0.34) -- -- (0.34) $10.63 3.82%*
Year ended 7/31/03 (0.55) -- -- (0.55) $10.91 7.89%
Year ended 7/31/04 (0.52) -- -- (0.52) $11.15 7.04%
Year ended 7/31/05 (0.50) (0.01) -- (0.51) $11.54 8.21%
Year ended 7/31/06 (0.52) (0.03) -- (0.55) $11.28 2.61%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 (0.16) -- -- (0.16) $11.12 (3.15%)*
Year ended 7/31/05 (0.47) (0.01) -- (0.48) $11.51 7.96%
Year ended 7/31/06 (0.49) (0.03) -- (0.52) $11.25 2.36%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 (0.14) -- -- (0.14) $11.12 (3.36%)*
Year ended 7/31/05 (0.39) (0.01) -- (0.40) $11.51 7.16%
Year ended 7/31/06 (0.40) (0.03) -- (0.43) $11.25 1.60%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 (0.09) -- -- (0.09) $10.50 0.62%*
1/1/02 to 7/31/02(c) (0.29) -- -- (0.29) $10.55 3.22%*
Year ended 7/31/03 (0.44) -- -- (0.44) $10.82 6.82%
Year ended 7/31/04 (0.41) -- -- (0.41) $11.05 6.07%
Year ended 7/31/05 (0.39) (0.01) -- (0.40) $11.43 7.12%
Year ended 7/31/06 (0.40) (0.03) -- (0.43) $11.17 1.62%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/01 (0.65) -- --^ (0.65) $10.53 12.64%
1/1/02 to 7/31/02(c) (0.31) -- -- (0.31) $10.60 3.64%*
Year ended 7/31/03 (0.49) -- -- (0.49) $10.88 7.36%
Year ended 7/31/04 (0.47) -- -- (0.47) $11.12 6.55%
Year ended 7/31/05 (0.45) (0.01) -- (0.46) $11.50 7.70%
Year ended 7/31/06 (0.46) (0.03) -- (0.49) $11.24 2.11%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 24,385 0.08% 3.72% 0.58% 15%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 16,138 0.33% 3.45% 0.82% 15%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 10,208 1.08% 2.69% 1.57% 15%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 3,816 1.08% 2.68% 1.57% 15%
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $ 45 0.58% 3.36% 1.09% 15%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $ 107,130 1.31% 4.56% 1.34% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 4,429 1.56% 4.30% 1.59% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 1,588 2.31% 3.57% 2.34% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 20,019 2.32% 3.53% 2.34% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
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%
Year ended 7/31/06 $ 20,880 1.82% 4.03% 1.84% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
188-189 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
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++
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
Year ended 7/31/06 $ 21.71 0.28@ 0.83 1.11
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS A SHARES ++
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
Year ended 7/31/06 $ 21.34 0.23@ 0.85 1.08
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS B SHARES ++
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
Year ended 7/31/06 $ 20.83 0.06@ 0.80 0.86
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS C SHARES ++
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
Year ended 7/31/06 $ 20.27 0.07@ 0.78 0.85
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
Year ended 7/31/06 (h) $ 21.34 0.15@ 0.83 0.98
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++
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%
Year ended 7/31/06 (0.26) -- (0.26) $ 22.56 5.14%
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS A SHARES ++
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%
Year ended 7/31/06 (0.24) -- (0.24) $ 22.18 5.05%
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS B SHARES ++
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%
Year ended 7/31/06 (0.16) -- (0.16) $ 21.53 4.13%
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS C SHARES ++
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%
Year ended 7/31/06 (0.15) -- (0.15) $ 20.97 4.22%
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
Year ended 7/31/06 (h) (0.21) -- (0.21) $ 22.11 4.59%
- -----------------------------------------------------------------------------------------------------------------------------------
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)
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++
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%
Year ended 7/31/06 $ 15,759 0.73% 1.25% 2.72% 147%
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS A SHARES ++
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%
Year ended 7/31/06 $ 4,670 0.98% 1.08% 2.93% 147%
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS B SHARES ++
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%
Year ended 7/31/06 $ 371 1.73% 0.27% 3.70% 147%
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND CLASS C SHARES ++
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%
Year ended 7/31/06 $ 389 1.73% 0.32% 3.71% 147%
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
Year ended 7/31/06 (h) $ 13 1.23% 0.67% 3.35% 147%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
190-191 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND INSTITUTIONAL SHARES
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
Year ended 7/31/06 $ 9.96 (0.14)@ 0.24 0.10
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS A SHARES
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
Year ended 7/31/06 $ 9.83 (0.16)@ 0.24 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS B SHARES
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
Year ended 7/31/06 $ 9.48 (0.23)@ 0.24 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS C SHARES
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
Year ended 7/31/06 $ 9.45 (0.23)@ 0.24 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
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
Year ended 7/31/06 $ 9.73 (0.19)@ 0.25 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/06 -- -- -- $ 10.06 1.00%
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS A SHARES
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%
Year ended 7/31/06 -- -- -- $ 9.91 0.81%
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS B SHARES
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%
Year ended 7/31/06 -- -- -- $ 9.49 0.11%
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS C SHARES
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%
Year ended 7/31/06 -- -- -- $ 9.46 0.11%
- -----------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 -- -- -- $ 9.79 0.62%
- -----------------------------------------------------------------------------------------------------------------------------------
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 7/31/02 $ 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%
Year ended 7/31/06 $ 47,523 1.51% (1.24%) 1.51% 506%
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 4,048 1.76% (1.48%) 1.76% 506%
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS B SHARES
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%
Year ended 7/31/06 $ 935 2.51% (2.23%) 2.51% 506%
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND CLASS C SHARES
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%
Year ended 7/31/06 $ 787 2.51% (2.25%) 2.51% 506%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 1,919 2.01% (1.77%) 2.01% 506%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
192-193 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
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
Year ended 7/31/02 $ 9.04 0.02 (1.30) (1.28)
Year ended 7/31/03 $ 7.65 0.06 0.12 0.18
Year ended 7/31/04 $ 7.79 0.06@ 1.61 1.67
Year ended 7/31/05 $ 9.32 0.13 1.54 1.67
Year ended 7/31/06 $10.79 0.15@ 2.37 2.52
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/02 $ 9.02 (0.04) (1.24) (1.28)
Year ended 7/31/03 $ 7.64 0.07 0.12 0.19
Year ended 7/31/04 $ 7.81 0.05@ 1.59 1.64
Year ended 7/31/05 $ 9.33 0.10 1.54 1.64
Year ended 7/31/06 $10.80 0.13@ 2.36 2.49
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
Year ended 7/31/02 $ 9.06 (0.05) (1.31) (1.36)
Year ended 7/31/03 $ 7.60 --^ 0.11 0.11
Year ended 7/31/04 $ 7.71 (0.02)@ 1.59 1.57
Year ended 7/31/05 $ 9.23 0.02 1.52 1.54
Year ended 7/31/06 $10.66 0.04@ 2.32 2.36
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/02 $ 8.82 (0.08) (1.24) (1.32)
Year ended 7/31/03 $ 7.40 0.02 0.08 0.10
Year ended 7/31/04 $ 7.50 (0.02)@ 1.54 1.52
Year ended 7/31/05 $ 8.99 0.02 1.49 1.51
Year ended 7/31/06 $10.39 0.03@ 2.28 2.31
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 8.67 0.02@ 0.65 0.67
Year ended 7/31/05 $ 9.31 0.08 1.54 1.62
Year ended 7/31/06 $10.78 0.08@ 2.37 2.45
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
Year ended 7/31/02 (0.11) -- (0.11) $ 7.65 (14.30%)
Year ended 7/31/03 (0.04) -- (0.04) $ 7.79 2.47%
Year ended 7/31/04 (0.14) -- (0.14) $ 9.32 21.56%
Year ended 7/31/05 (0.20) -- (0.20) $ 10.79 17.99%
Year ended 7/31/06 (0.20) (0.28) (0.48) $ 12.83 23.86%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/02 (0.10) -- (0.10) $ 7.64 (14.23%)
Year ended 7/31/03 (0.02) -- (0.02) $ 7.81 2.52%
Year ended 7/31/04 (0.12) -- (0.12) $ 9.33 21.11%
Year ended 7/31/05 (0.17) -- (0.17) $ 10.80 17.79%
Year ended 7/31/06 (0.17) (0.28) (0.45) $ 12.84 23.53%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
Year ended 7/31/02 (0.10) -- (0.10) $ 7.60 (15.11%)
Year ended 7/31/03 -- -- -- $ 7.71 1.45%
Year ended 7/31/04 (0.05) -- (0.05) $ 9.23 20.43%
Year ended 7/31/05 (0.11) -- (0.11) $ 10.66 16.76%
Year ended 7/31/06 (0.10) (0.28) (0.38) $ 12.64 22.59%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/02 (0.10) -- (0.10) $ 7.40 (15.07%)
Year ended 7/31/03 -- -- -- $ 7.50 1.35%
Year ended 7/31/04 (0.03) -- (0.03) $ 8.99 20.32%
Year ended 7/31/05 (0.11) -- (0.11) $ 10.39 16.83%
Year ended 7/31/06 (0.11) (0.28) (0.39) $ 12.31 22.61%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY ADVISOR SHARES
11/10/03(d) to 7/31/04 (0.03) -- (0.03) $ 9.31 7.70%*
Year ended 7/31/05 (0.15) -- (0.15) $ 10.78 17.43%
Year ended 7/31/06 (0.12) (0.28) (0.40) $ 12.83 23.18%
- -----------------------------------------------------------------------------------------------------------------------------------
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 7/31/02 $ 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%
Year ended 7/31/06 $ 434,572 1.35% 1.24% 1.37% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
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%
Year ended 7/31/06 $ 27,725 1.60% 1.03% 1.62% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
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%
Year ended 7/31/06 $ 2,060 2.35% 0.32% 2.37% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
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%
Year ended 7/31/06 $ 1,139 2.35% 0.29% 2.37% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 9,631 1.85% 0.68% 1.88% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
194-195 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND INSTITUTIONAL SHARES
11/29/05 (d) to 7/31/06 $ 10.00 0.44 (0.28) 0.16
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05 (d) to 7/31/06 $ 10.00 0.41 (0.27) 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05 (d) to 7/31/06 $ 10.00 0.33 (0.24) 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05 (d) to 7/31/06 $ 10.00 0.35 (0.25) 0.10
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05 (d) to 7/31/06 $ 10.00 0.39 (0.26) 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 9.97 0.50 (0.01) 0.49
Year ended 7/31/03 $ 9.93 0.39 0.09 0.48
Year ended 7/31/04 $ 9.96 0.28 0.14 0.42
Year ended 7/31/05 $ 10.02 0.34 0.10 0.44
Year ended 7/31/06 $ 10.07 0.42 (0.30) 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 9.95 0.51 (0.03) 0.48
Year ended 7/31/03 $ 9.92 0.37 0.08 0.45
Year ended 7/31/04 $ 9.95 0.25 0.16 0.41
Year ended 7/31/05 $ 10.02 0.30 0.11 0.41
Year ended 7/31/06 $ 10.07 0.39 (0.30) 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.13 0.29 (0.17) 0.12
Year ended 7/31/03 $ 9.93 0.28 0.08 0.36
Year ended 7/31/04 $ 9.95 0.15 0.18 0.33
Year ended 7/31/05 $ 10.02 0.23 0.10 0.33
Year ended 7/31/06 $ 10.07 0.32 (0.30) 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.13 0.27 (0.16) 0.11
Year ended 7/31/03 $ 9.93 0.29 0.08 0.37
Year ended 7/31/04 $ 9.96 0.17 0.15 0.32
Year ended 7/31/05 $ 10.02 0.23 0.10 0.33
Year ended 7/31/06 $ 10.07 0.31 (0.28) 0.03
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 10.13 0.35 (0.19) 0.16
Year ended 7/31/03 $ 9.93 0.34 0.08 0.42
Year ended 7/31/04 $ 9.96 0.23 0.14 0.37
Year ended 7/31/05 $ 10.02 0.28 0.11 0.39
Year ended 7/31/06 $ 10.07 0.36 (0.30) 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND INSTITUTIONAL SHARES
11/29/05 (d) to 7/31/06 (0.42) -- (0.42) $ 9.74 1.59%*
- -----------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05 (d) to 7/31/06 (0.40) -- (0.40) $ 9.74 1.44%*
- -----------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05 (d) to 7/31/06 (0.36) -- (0.36) $ 9.73 0.91%*
- -----------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05 (d) to 7/31/06 (0.36) -- (0.36) $ 9.74 0.94%*
- -----------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05 (d) to 7/31/06 (0.39) -- (0.39) $ 9.74 1.26%*
- -----------------------------------------------------------------------------------------------------------------------------------
BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.53) -- (0.53) $ 9.93 5.06%
Year ended 7/31/03 (0.45) -- (0.45) $ 9.96 4.79%
Year ended 7/31/04 (0.36) -- (0.36) $ 10.02 4.26%
Year ended 7/31/05 (0.38) (0.01) (0.39) $ 10.07 4.43%
Year ended 7/31/06 (0.45) (0.06) (0.51) $ 9.68 1.21%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.51) -- (0.51) $ 9.92 4.91%
Year ended 7/31/03 (0.42) -- (0.42) $ 9.95 4.62%
Year ended 7/31/04 (0.34) -- (0.34) $ 10.02 4.00%
Year ended 7/31/05 (0.35) (0.01) (0.36) $ 10.07 4.17%
Year ended 7/31/06 (0.42) (0.06) (0.48) $ 9.68 0.97%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.32) -- (0.32) $ 9.93 1.22%*
Year ended 7/31/03 (0.34) -- (0.34) $ 9.95 3.74%
Year ended 7/31/04 (0.26) -- (0.26) $ 10.02 3.19%
Year ended 7/31/05 (0.27) (0.01) (0.28) $ 10.07 3.38%
Year ended 7/31/06 (0.35) (0.06) (0.41) $ 9.68 0.20%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.31) -- (0.31) $ 9.93 1.20%*
Year ended 7/31/03 (0.34) -- (0.34) $ 9.96 3.75%
Year ended 7/31/04 (0.26) -- (0.26) $ 10.02 3.20%
Year ended 7/31/05 (0.27) (0.01) (0.28) $ 10.07 3.37%
Year ended 7/31/06 (0.35) (0.06) (0.41) $ 9.69 0.30%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.36) -- (0.36) $ 9.93 1.69%*
Year ended 7/31/03 (0.39) -- (0.39) $ 9.96 4.25%
Year ended 7/31/04 (0.31) -- (0.31) $ 10.02 3.73%
Year ended 7/31/05 (0.33) (0.01) (0.34) $ 10.07 3.90%
Year ended 7/31/06 (0.39) (0.06) (0.45) $ 9.68 0.69%
- -----------------------------------------------------------------------------------------------------------------------------------
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 7/31/06 $ 66,033 0.74%** 6.77%** 1.15%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05 (d) to 7/31/06 $ 227 0.99%** 6.74%** 2.98%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05 (d) to 7/31/06 $ 96 1.74%** 5.98%** 7.16%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05 (d) to 7/31/06 $ 55 1.74%** 5.93%** 8.04%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05 (d) to 7/31/06 $ 10 1.24%** 5.98%** 24.09%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND INSTITUTIONAL SHARES
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%
Year ended 7/31/06 $ 252,145 0.74% 4.23% 0.90% 352%
- ------------------------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 11,657 0.99% 3.97% 1.15% 352%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 2,655 1.74% 3.20% 1.91% 352%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 315 1.74% 3.16% 1.91% 352%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 260 1.24% 3.65% 1.40% 352%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
196-197 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 9.90 0.47 0.11 0.58
Year ended 7/31/03 $ 9.98 0.38 0.10 0.48
Year ended 7/31/04 $ 10.04 0.31 (0.04) 0.27
Year ended 7/31/05 $ 9.93 0.37 (0.08) 0.29
Year ended 7/31/06 $ 9.80 0.43@ (0.27) 0.16
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 9.93 0.50 0.06 0.56
Year ended 7/31/03 $ 10.01 0.36 0.09 0.45
Year ended 7/31/04 $ 10.06 0.29 (0.04) 0.25
Year ended 7/31/05 $ 9.95 0.34 (0.08) 0.26
Year ended 7/31/06 $ 9.82 0.40@ (0.26) 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.08 0.29 (0.10) 0.19
Year ended 7/31/03 $ 9.96 0.29 0.09 0.38
Year ended 7/31/04 $ 10.01 0.24 (0.03) 0.21
Year ended 7/31/05 $ 9.90 0.34 (0.08) 0.26
Year ended 7/31/06 $ 9.77 0.40@ (0.26) 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.08 0.27 (0.07) 0.20
Year ended 7/31/03 $ 9.98 0.30 0.08 0.38
Year ended 7/31/04 $ 10.03 0.20 (0.03) 0.17
Year ended 7/31/05 $ 9.92 0.26 (0.07) 0.19
Year ended 7/31/06 $ 9.79 0.33@ (0.26) 0.07
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 9.80 0.39@ (0.28) 0.11
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.50) -- (0.50) $ 9.98 6.15%
Year ended 7/31/03 (0.42) -- (0.42) $ 10.04 4.77%
Year ended 7/31/04 (0.38) -- (0.38) $ 9.93 2.71%
Year ended 7/31/05 (0.42) -- (0.42) $ 9.80 2.85%
Year ended 7/31/06 (0.45) -- (0.45) $ 9.51 1.65%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.48) -- (0.48) $ 10.01 5.78%
Year ended 7/31/03 (0.40) -- (0.40) $ 10.06 4.52%
Year ended 7/31/04 (0.36) -- (0.36) $ 9.95 2.45%
Year ended 7/31/05 (0.39) -- (0.39) $ 9.82 2.67%
Year ended 7/31/06 (0.42) -- (0.42) $ 9.54 1.48%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.31) -- (0.31) $ 9.96 1.92%*
Year ended 7/31/03 (0.33) -- (0.33) $ 10.01 3.78%
Year ended 7/31/04 (0.32) -- (0.32) $ 9.90 2.06%
Year ended 7/31/05 (0.39) -- (0.39) $ 9.77 2.58%
Year ended 7/31/06 (0.42) -- (0.42) $ 9.49 1.49%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.30) -- (0.30) $ 9.98 2.02%*
Year ended 7/31/03 (0.33) -- (0.33) $ 10.03 3.78%
Year ended 7/31/04 (0.28) -- (0.28) $ 9.92 1.72%
Year ended 7/31/05 (0.32) -- (0.32) $ 9.79 1.91%
Year ended 7/31/06 (0.35) -- (0.35) $ 9.51 0.72%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.40) -- (0.40) $ 9.51 1.17%
- -----------------------------------------------------------------------------------------------------------------------------------
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 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%
Year ended 7/31/06 $ 440,962 0.72% 4.42% 0.83% 154%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 23,075 0.97% 4.17% 1.08% 154%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 2,232 0.97% 4.16% 1.83% 154%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 741 1.72% 3.41% 1.83% 154%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 13 1.20% 4.10% 1.29% 154%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
198-199 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 9.83 0.41 0.07 0.48
Year ended 7/31/03 $ 9.82 0.28 0.03 0.31
Year ended 7/31/04 $ 9.75 0.19@ (0.06) 0.13
Year ended 7/31/05 $ 9.57 0.20 (0.08) 0.12
Year ended 7/31/06 $ 9.37 0.31 (0.06) 0.25
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 9.82 0.43 0.03 0.46
Year ended 7/31/03 $ 9.81 0.28 0.02 0.30
Year ended 7/31/04 $ 9.74 0.18@ (0.07) 0.11
Year ended 7/31/05 $ 9.56 0.19 (0.09) 0.10
Year ended 7/31/06 $ 9.36 0.28 (0.04) 0.24
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03(d) to 7/31/04 $ 9.75 0.09@ (0.06) 0.03
Year ended 7/31/05 $ 9.56 0.10 (0.08) 0.02
Year ended 7/31/06 $ 9.36 0.21 (0.04) 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 9.37 0.27 (0.07) 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02(f) $ 10.06 0.41 0.33 0.74
Year ended 7/31/03 $ 10.42 0.30 0.03 0.33
Year ended 7/31/04 $ 10.29 0.25 --^ 0.25
Year ended 7/31/05 $ 10.12 0.30 (0.06) 0.24
Year ended 7/31/06 $ 10.08 0.38 (0.19) 0.19
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/02(f) $ 10.06 0.38 0.35 0.73
Year ended 7/31/03 $ 10.43 0.27 0.03 0.30
Year ended 7/31/04 $ 10.29 0.20 0.03 0.23
Year ended 7/31/05 $ 10.13 0.28 (0.06) 0.22
Year ended 7/31/06 $ 10.09 0.36 (0.19) 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/02(f) $ 10.01 0.30 0.34 0.64
Year ended 7/31/03 $ 10.36 0.19 0.03 0.22
Year ended 7/31/04 $ 10.22 0.15 (0.01) 0.14
Year ended 7/31/05 $ 10.05 0.20 (0.06) 0.14
Year ended 7/31/06 $ 10.01 0.29 (0.20) 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 10.09 0.34 (0.19) 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.49) -- (0.49) $ 9.82 4.96%
Year ended 7/31/03 (0.38) -- (0.38) $ 9.75 3.23%
Year ended 7/31/04 (0.31) -- (0.31) $ 9.57 1.31%
Year ended 7/31/05 (0.32) -- (0.32) $ 9.37 1.16%
Year ended 7/31/06 (0.37) -- (0.37) $ 9.25 2.75%
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.47) -- (0.47) $ 9.81 4.83%
Year ended 7/31/03 (0.37) -- (0.37) $ 9.74 3.07%
Year ended 7/31/04 (0.29) -- (0.29) $ 9.56 1.12%
Year ended 7/31/05 (0.30) -- (0.30) $ 9.36 1.00%
Year ended 7/31/06 (0.35) -- (0.35) $ 9.25 2.60%
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03(d) to 7/31/04 (0.22) -- (0.22) $ 9.56 0.39%*
Year ended 7/31/05 (0.22) -- (0.22) $ 9.36 0.23%
Year ended 7/31/06 (0.28) -- (0.28) $ 9.25 1.81%
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.33) -- (0.33) $ 9.24 2.18%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02(f) (0.38) -- (0.38) $ 10.42 7.55%
Year ended 7/31/03 (0.30) (0.16) (0.46) $ 10.29 3.19%
Year ended 7/31/04 (0.26) (0.16) (0.42) $ 10.12 2.42%
Year ended 7/31/05 (0.28) -- (0.28) $ 10.08 2.39%
Year ended 7/31/06 (0.35) (0.03) (0.38) $ 9.89 1.91%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/02(f) (0.36) -- (0.36) $ 10.43 7.42%
Year ended 7/31/03 (0.28) (0.16) (0.44) $ 10.29 2.83%
Year ended 7/31/04 (0.23) (0.16) (0.39) $ 10.13 2.26%
Year ended 7/31/05 (0.26) -- (0.26) $ 10.09 2.13%
Year ended 7/31/06 (0.33) (0.03) (0.36) $ 9.90 1.65%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/02(f) (0.29) -- (0.29) $ 10.36 6.53%
Year ended 7/31/03 (0.20) (0.16) (0.36) $ 10.22 2.12%
Year ended 7/31/04 (0.15) (0.16) (0.31) $ 10.05 1.41%
Year ended 7/31/05 (0.18) -- (0.18) $ 10.01 1.39%
Year ended 7/31/06 (0.25) (0.03) (0.28) $ 9.82 0.86%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.31) (0.03) (0.34) $ 9.90 1.44%
- -----------------------------------------------------------------------------------------------------------------------------------
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 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%
Year ended 7/31/06 $ 258,423 0.67% 3.33% 0.78% 53%
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
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%
Year ended 7/31/06 $ 12,362 0.92% 3.07% 1.03% 53%
- ------------------------------------------------------------------------------------------------------------------------------------
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%
Year ended 7/31/06 $ 205 1.67% 2.31% 1.79% 53%
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 3 1.16% 2.85% 1.28% 53%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02(f) $ 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% 159%
Year ended 7/31/06 $ 29,005 0.73% 3.88% 0.98% 103%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/02(f) $ 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% 159%
Year ended 7/31/06 $ 23,702 0.98% 3.63% 1.23% 103%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/02(f) $ 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% 159%
Year ended 7/31/06 $ 1,767 1.73% 2.87% 1.98% 103%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 3 1.19% 3.43% 1.39% 103%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
200-201 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 10.75 0.43 0.24 0.67
Year ended 7/31/03 $ 10.74 0.43@ (0.09) 0.34
Year ended 7/31/04 $ 10.49 0.43@ 0.08 0.51
Year ended 7/31/05 $ 10.40 0.40 0.06 0.46
Year ended 7/31/06 $ 10.07 0.37 (0.23) 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 10.78 0.40 0.25 0.65
Year ended 7/31/03 $ 10.77 0.40@ (0.07) 0.33
Year ended 7/31/04 $ 10.54 0.40@ 0.06 0.46
Year ended 7/31/05 $ 10.43 0.38 0.06 0.44
Year ended 7/31/06 $ 10.11 0.36 (0.23) 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.87 0.25 0.09 0.34
Year ended 7/31/03 $ 10.71 0.32@ (0.07) 0.25
Year ended 7/31/04 $ 10.47 0.32@ 0.07 0.39
Year ended 7/31/05 $ 10.37 0.29 0.06 0.35
Year ended 7/31/06 $ 10.04 0.28 (0.24) 0.04
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.87 0.25 0.10 0.35
Year ended 7/31/03 $ 10.72 0.32@ (0.07) 0.25
Year ended 7/31/04 $ 10.48 0.32@ 0.07 0.39
Year ended 7/31/05 $ 10.38 0.31 0.04 0.35
Year ended 7/31/06 $ 10.05 0.28 (0.23) 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 10.87 0.28 0.13 0.41
Year ended 7/31/03 $ 10.73 0.38@ (0.08) 0.30
Year ended 7/31/04 $ 10.49 0.38@ 0.06 0.44
Year ended 7/31/05 $ 10.39 0.34 0.06 0.40
Year ended 7/31/06 $ 10.06 0.33 (0.23) 0.10
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 10.78 0.38 0.25 0.63
Year ended 7/31/03 $ 10.79 0.37@ (0.09) 0.28
Year ended 7/31/04 $ 10.64 0.37 (0.03) 0.34
Year ended 7/31/05 $ 10.53 0.37 (0.07) 0.30
Year ended 7/31/06 $ 10.33 0.36@ (0.21) 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 10.78 0.36 0.24 0.60
Year ended 7/31/03 $ 10.79 0.34@ (0.07) 0.27
Year ended 7/31/04 $ 10.65 0.34 (0.02) 0.32
Year ended 7/31/05 $ 10.54 0.33 (0.07) 0.26
Year ended 7/31/06 $ 10.33 0.33@ (0.20) 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
Year ended 7/31/03 $ 10.78 0.26@ (0.08) 0.18
Year ended 7/31/04 $ 10.63 0.30 (0.03) 0.27
Year ended 7/31/05 $ 10.51 0.34 (0.07) 0.27
Year ended 7/31/06 $ 10.31 0.33@ (0.20) 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
Year ended 7/31/03 $ 10.78 0.26@ (0.08) 0.18
Year ended 7/31/04 $ 10.63 0.28 (0.04) 0.24
Year ended 7/31/05 $ 10.53 0.24 (0.05) 0.19
Year ended 7/31/06 $ 10.33 0.26@ (0.21) 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 10.33 0.32@ (0.21) 0.11
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.43) (0.25) (0.68) $ 10.74 6.57%
Year ended 7/31/03 (0.43) (0.16) (0.59) $ 10.49 3.18%
Year ended 7/31/04 (0.43) (0.17) (0.60) $ 10.40 4.84%
Year ended 7/31/05 (0.40) (0.39) (0.79) $ 10.07 4.53%
Year ended 7/31/06 (0.37) (0.44) (0.81) $ 9.40 1.49%
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.41) (0.25) (0.66) $ 10.77 6.31%
Year ended 7/31/03 (0.40) (0.16) (0.56) $ 10.54 3.05%
Year ended 7/31/04 (0.40) (0.17) (0.57) $ 10.43 4.35%
Year ended 7/31/05 (0.37) (0.39) (0.76) $ 10.11 4.35%
Year ended 7/31/06 (0.35) (0.44) (0.79) $ 9.45 1.32%
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.25) (0.25) (0.50) $ 10.71 3.36%*
Year ended 7/31/03 (0.33) (0.16) (0.49) $ 10.47 2.26%
Year ended 7/31/04 (0.32) (0.17) (0.49) $ 10.37 3.71%
Year ended 7/31/05 (0.29) (0.39) (0.68) $ 10.04 3.50%
Year ended 7/31/06 (0.27) (0.44) (0.71) $ 9.37 0.47%
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.25) (0.25) (0.50) $ 10.72 3.42%*
Year ended 7/31/03 (0.33) (0.16) (0.49) $ 10.48 2.31%
Year ended 7/31/04 (0.32) (0.17) (0.49) $ 10.38 3.71%
Year ended 7/31/05 (0.29) (0.39) (0.68) $ 10.05 3.45%
Year ended 7/31/06 (0.27) (0.44) (0.71) $ 9.39 0.56%
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.30) (0.25) (0.55) $ 10.73 3.99%*
Year ended 7/31/03 (0.38) (0.16) (0.54) $ 10.49 2.76%
Year ended 7/31/04 (0.37) (0.17) (0.54) $ 10.39 4.22%
Year ended 7/31/05 (0.34) (0.39) (0.73) $ 10.06 4.01%
Year ended 7/31/06 (0.32) (0.44) (0.76) $ 9.40 1.08%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.38) (0.24) (0.62) $ 10.79 6.00%
Year ended 7/31/03 (0.36) (0.07) (0.43) $ 10.64 2.64%
Year ended 7/31/04 (0.36) (0.09) (0.45) $ 10.53 3.27%
Year ended 7/31/05 (0.42) (0.08) (0.50) $ 10.33 2.83%
Year ended 7/31/06 (0.36) (0.13) (0.49) $ 9.99 1.43%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.35) (0.24) (0.59) $ 10.79 5.74%
Year ended 7/31/03 (0.34) (0.07) (0.41) $ 10.65 2.48%
Year ended 7/31/04 (0.34) (0.09) (0.43) $ 10.54 3.03%
Year ended 7/31/05 (0.39) (0.08) (0.47) $ 10.33 2.44%
Year ended 7/31/06 (0.33) (0.13) (0.46) $ 10.00 1.27%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.21) -- (0.21) $ 10.78 3.02%*
Year ended 7/31/03 (0.26) (0.07) (0.33) $ 10.63 1.67%
Year ended 7/31/04 (0.30) (0.09) (0.39) $ 10.51 2.54%
Year ended 7/31/05 (0.39) (0.08) (0.47) $ 10.31 2.54%
Year ended 7/31/06 (0.33) (0.13) (0.46) $ 9.98 1.28%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.21) -- (0.21) $ 10.78 3.03%*
Year ended 7/31/03 (0.26) (0.07) (0.33) $ 10.63 1.64%
Year ended 7/31/04 (0.25) (0.09) (0.34) $ 10.53 2.29%
Year ended 7/31/05 (0.31) (0.08) (0.39) $ 10.33 1.76%
Year ended 7/31/06 (0.26) (0.13) (0.39) $ 9.99 0.41%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.31) (0.13) (0.44) $ 10.00 1.09%
- -----------------------------------------------------------------------------------------------------------------------------------
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 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% 83%
Year ended 7/31/06 $ 39,514 0.65% 3.87% 1.06% 87%
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
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% 83%
Year ended 7/31/06 $ 1,378 0.90% 3.62% 1.31% 87%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 83%
Year ended 7/31/06 $ 1,016 1.66% 2.86% 2.06% 87%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 83%
Year ended 7/31/06 $ 87 1.66% 2.86% 2.06% 87%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 83%
Year ended 7/31/06 $ 174 1.16% 3.36% 1.55% 87%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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% 60%
Year ended 7/31/06 $ 164,537 0.71% 3.53% 0.87% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
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% 60%
Year ended 7/31/06 $ 2,559 0.96% 3.28% 1.12% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 60%
Year ended 7/31/06 $ 446 0.96% 3.27% 1.87% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 60%
Year ended 7/31/06 $ 89 1.71% 2.52% 1.87% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 3 1.16% 3.11% 1.31% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
202-203 Spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
-------------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING
BEGINNING INVESTMENT INVESTMENT FROM
OF PERIOD INCOME TRANSACTIONS OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02(g) $ 10.27 0.39 0.20 0.59
Year ended 7/31/03 $ 10.48 0.37 (0.09) 0.28
Year ended 7/31/04 $ 10.39 0.36 0.02 0.38
Year ended 7/31/05 $ 10.39 0.36 (0.09) 0.27
Year ended 7/31/06 $ 10.24 0.36@ (0.21) 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02(g) $ 10.28 0.36 0.19 0.55
Year ended 7/31/03 $ 10.48 0.35 (0.10) 0.25
Year ended 7/31/04 $ 10.39 0.33 0.03 0.36
Year ended 7/31/05 $ 10.39 0.33 (0.08) 0.25
Year ended 7/31/06 $ 10.25 0.33@ (0.21) 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
Year ended 7/31/02(g) $ 10.10 0.28 0.19 0.47
Year ended 7/31/03 $ 10.29 0.27 (0.10) 0.17
Year ended 7/31/04 $ 10.19 0.24 0.03 0.27
Year ended 7/31/05 $ 10.18 0.25 (0.08) 0.17
Year ended 7/31/06 $ 10.03 0.25@ (0.21) 0.04
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/02(i) $ 10.25 0.28 0.19 0.47
Year ended 7/31/03 $ 10.44 0.26 (0.09) 0.17
Year ended 7/31/04 $ 10.35 0.26 0.02 0.28
Year ended 7/31/05 $ 10.35 0.25 (0.09) 0.16
Year ended 7/31/06 $ 10.20 0.25@ (0.20) 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 10.25 0.31@ (0.22) 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 $ 10.25 0.38 0.19 0.57
Year ended 7/31/03 $ 10.39 0.31 (0.05) 0.26
Year ended 7/31/04 $ 10.31 0.28 (0.13) 0.15
Year ended 7/31/05 $ 10.17 0.28 (0.13) 0.15
Year ended 7/31/06 $ 10.03 0.28 (0.15) 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 10.24 0.36 0.19 0.55
Year ended 7/31/03 $ 10.38 0.30 (0.05) 0.25
Year ended 7/31/04 $ 10.30 0.27 (0.13) 0.14
Year ended 7/31/05 $ 10.16 0.26 (0.13) 0.13
Year ended 7/31/06 $ 10.02 0.27 (0.15) 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 10.35 0.21 0.08 0.29
Year ended 7/31/03 $ 10.38 0.21 (0.05) 0.16
Year ended 7/31/04 $ 10.30 0.18 (0.13) 0.05
Year ended 7/31/05 $ 10.16 0.17 (0.13) 0.04
Year ended 7/31/06 $ 10.02 0.19 (0.15) 0.04
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 10.35 0.19 0.10 0.29
Year ended 7/31/03 $ 10.38 0.21 (0.06) 0.15
Year ended 7/31/04 $ 10.29 0.19 (0.13) 0.06
Year ended 7/31/05 $ 10.16 0.18 (0.14) 0.04
Year ended 7/31/06 $ 10.02 0.19 (0.15) 0.04
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 10.03 0.23 (0.14) 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DIVIDENDS AND
DISTRIBUTIONS FROM
----------------------
NET TOTAL
TOTAL ASSET RETURN
NET NET DIVIDENDS VALUE, EXCLUDES
INVESTMENT REALIZED AND END OF SALES
INCOME GAINS DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02(g) (0.38) -- (0.38) $ 10.48 5.86%
Year ended 7/31/03 (0.37) -- (0.37) $ 10.39 2.65%
Year ended 7/31/04 (0.35) (0.03) (0.38) $ 10.39 3.66%
Year ended 7/31/05 (0.35) (0.07) (0.42) $ 10.24 2.61%
Year ended 7/31/06 (0.36) (0.03) (0.39) $ 10.00 1.46%
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02(g) (0.35) -- (0.35) $ 10.48 5.50%
Year ended 7/31/03 (0.34) -- (0.34) $ 10.39 2.39%
Year ended 7/31/04 (0.33) (0.03) (0.36) $ 10.39 3.40%
Year ended 7/31/05 (0.32) (0.07) (0.39) $ 10.25 2.36%
Year ended 7/31/06 (0.33) (0.03) (0.36) $ 10.01 1.19%
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
Year ended 7/31/02(g) (0.28) -- (0.28) $ 10.29 4.76%
Year ended 7/31/03 (0.27) -- (0.27) $ 10.19 1.59%
Year ended 7/31/04 (0.25) (0.03) (0.28) $ 10.18 2.62%
Year ended 7/31/05 (0.25) (0.07) (0.32) $ 10.03 1.66%
Year ended 7/31/06 (0.26) (0.03) (0.29) $ 9.78 0.37%
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/02(i) (0.28) -- (0.28) $ 10.44 4.71%
Year ended 7/31/03 (0.26) -- (0.26) $ 10.35 1.65%
Year ended 7/31/04 (0.25) (0.03) (0.28) $ 10.35 2.65%
Year ended 7/31/05 (0.24) (0.07) (0.31) $ 10.20 1.60%
Year ended 7/31/06 (0.25) (0.03) (0.28) $ 9.97 0.44%
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.32) (0.03) (0.35) $ 9.99 0.83%
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
Year ended 7/31/02 (0.38) (0.05) (0.43) $ 10.39 5.65%
Year ended 7/31/03 (0.31) (0.03) (0.34) $ 10.31 2.70%
Year ended 7/31/04 (0.28) (0.01) (0.29) $ 10.17 1.43%
Year ended 7/31/05 (0.28) (0.01) (0.29) $ 10.03 1.49%
Year ended 7/31/06 (0.28) -- (0.28) $ 9.88 1.35%
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.36) (0.05) (0.41) $ 10.38 5.51%
Year ended 7/31/03 (0.30) (0.03) (0.33) $ 10.30 2.45%
Year ended 7/31/04 (0.27) (0.01) (0.28) $ 10.16 1.37%
Year ended 7/31/05 (0.26) (0.01) (0.27) $ 10.02 1.33%
Year ended 7/31/06 (0.27) -- (0.27) $ 9.87 1.20%
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.21) (0.05) (0.26) $ 10.38 2.82%*
Year ended 7/31/03 (0.21) (0.03) (0.24) $ 10.30 1.70%
Year ended 7/31/04 (0.18) (0.01) (0.19) $ 10.16 0.43%
Year ended 7/31/05 (0.17) (0.01) (0.18) $ 10.02 0.46%
Year ended 7/31/06 (0.18) -- (0.18) $ 9.88 0.42%
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.21) (0.05) (0.26) $ 10.38 2.89%*
Year ended 7/31/03 (0.21) (0.03) (0.24) $ 10.29 1.60%
Year ended 7/31/04 (0.18) (0.01) (0.19) $ 10.16 0.48%
Year ended 7/31/05 (0.17) (0.01) (0.18) $ 10.02 0.43%
Year ended 7/31/06 (0.18) -- (0.18) $ 9.88 0.43%
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.24) -- (0.24) $ 9.88 0.91%
- -----------------------------------------------------------------------------------------------------------------------------------
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 7/31/02(g) $ 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% 19%
Year ended 7/31/06 $ 85,716 0.80% 3.54% 0.90% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02(g) $ 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% 19%
Year ended 7/31/06 $ 23,032 1.05% 3.29% 1.15% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
Year ended 7/31/02(g) $ 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% 19%
Year ended 7/31/06 $ 3,426 1.80% 2.54% 1.90% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/02(i) $ 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% 19%
Year ended 7/31/06 $ 1,217 1.80% 2.50% 1.90% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 3 1.29% 3.06% 1.46% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES
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% 11%
Year ended 7/31/06 $ 50,670 0.68% 2.84% 0.88% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
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% 11%
Year ended 7/31/06 $ 4,728 0.83% 2.70% 1.13% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 11%
Year ended 7/31/06 $ 607 1.68% 1.83% 1.88% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
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% 11%
Year ended 7/31/06 $ 196 1.68% 1.83% 1.88% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 3 1.18% 2.31% 1.26% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS
AND NOTES TO FINANCIAL STATEMENTS.
204-205 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) 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.
(g) 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.
(h) Commencement of operations was August 1, 2005.
^ Amount is less than $0.005 per share.
++ 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
206
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and
Trustees of Fifth Third Funds:
In our opinion, the accompanying statements of assets and liabilities, including
schedules of portfolio investments, and the related statements of operations and
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Fifth Third Small Cap Growth Fund,
Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth Third
Large Cap Core Fund, Fifth Third Equity Index Fund, Fifth Third Balanced Fund,
Fifth Third Micro Cap Value Fund, Fifth Third Small Cap Value Fund, Fifth Third
Multi Cap Value Fund, Fifth Third Disciplined Large Cap Value Fund, Fifth Third
LifeModel Aggressive Fund SM, Fifth Third LifeModel Moderately Aggressive Fund
SM, Fifth Third LifeModel Moderate Fund SM, Fifth Third LifeModel Moderately
Conservative Fund SM, Fifth Third LifeModel Conservative Fund SM, Fifth Third
Strategic Income Fund, Fifth Third Dividend Growth Fund (formerly Fifth Third
Select Stock Fund), Fifth Third Technology Fund, Fifth Third International
Equity Fund, Fifth Third High Yield Bond Fund, Fifth Third Bond Fund, Fifth
Third Intermediate Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third U.S.
Government Bond Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate
Municipal Bond Fund, Fifth Third Ohio Municipal Bond Fund, and Fifth Third
Michigan Municipal Bond Fund (separate portfolios constituting Fifth Third
Funds, hereafter referred to as the "Funds") at July 31, 2006, the results of
each of their operations for the year or period then ended, the changes in each
of their net assets for the two years or period then ended and the financial
highlights for each of the five years or period presented (except for the period
ended December 31, 2001), in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at July 31, 2006 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion. The financial
highlights of Fifth Third Micro Cap Value Fund, Fifth Third Multi Cap Value Fund
and Fifth Third Strategic Income Fund for the periods ended December 31, 2001
and prior were audited by other independent auditors. Those independent auditors
expressed an unqualified opinion on those statements in their report dated
February 22, 2002.
PricewaterhouseCoopers LLP
September 22, 2006
207
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Event (Unaudited) Subsequent to the Date of the Report of Independent Registered
Public Accounting Firm
Subsequent to the completion of the Funds' Annual Report to shareholders for the
fiscal year ended July 31, 2006, BISYS Fund Services, Inc. ("BISYS"), which
provides various services to the Trust, reached a settlement with the Securities
and Exchange Commission ("SEC") regarding the SEC's investigation of BISYS's
past payment of certain marketing and other expenses with respect to certain of
its mutual fund clients. The SEC's investigation of BISYS with respect to this
matter is complete. The SEC's inquiries related to this matter, including those
of the Trust's service arrangements with BISYS, have not been completed. At this
time, the Trust's management cannot evaluate the likelihood of an unfavorable
outcome or estimate the amount or range of potential loss, if any, with respect
to the Trust regarding the BISYS matter. Accordingly, the impact, if any, of
this matter on the Funds or the Funds' financial statements is uncertain.
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT^
The Trustees and Officers of the Funds, their date of birth, the position they
hold with the Funds, their term of office and length of time served, a
description of their principal occupations during the past five years, the
number of portfolios in the fund complex that the Trustee oversees and any other
directorships held by the Trustee are listed in the two tables immediately
following. The business address of the persons listed below is 3435 Stelzer
Road, Columbus, Ohio 43219-3035.
INDEPENDENT TRUSTEES
--------------------
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF IN FUND
HELD OFFICE AND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ------------------- -------------- ----------------------- ----------- --------------------------
David J. Durham Trustee Indefinite, Chairman of Clipper 36 None
Date of Birth: 5/10/1945 June 2001- Products, Inc., a
Present wholesale distributor,
2005-present. Chairman
of Norris Products
Corp., a wholesale
distributor,
2005-present. President
and Chief Executive
Officer of Clipper
Products, Inc.,
1997-Present.
J. Joseph Hale Jr. Trustee Indefinite, Consultant, Duke Energy 36 Trustee for Hanover
Date of Birth: 9/11/1949 March 2001- 2006-Present. College, National
Present President, Cinergy Underground Freedom
Foundation, November Center, The Cincinnati
2001-Present. Zoo, The Ohio Arts
President, Cinergy Council, The Cincinnati
Corp., Cincinnati Gas & Parks Foundation and
Electric Co.,The Union Playhouse in the Park.
Light Heat & Power Co.,
July 2000-October 2001.
John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 36 Printing Industries of
Date of Birth: 12/5/1944 October 2001- Present. Business America:Web Offset Assoc.,
Present Management Consultant, Director; Master Printers
April 2000-February of America, Director.
2002.
________________
^ Additional disclosures can be found in the Statement of Additional
Information, which can be obtained by calling 1-800-282-5706.
208
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES, CONTINUED
-------------------------------
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF IN FUND
HELD OFFICE AND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ------------------- -------------- ----------------------- ----------- --------------------------
David J. Gruber Trustee Indefinite, Resources Global 36 None
Date of Birth: 8/19/1963 December 2003- Professionals, Project
Present Professional, December
2004-Present. Ohio Arts
& Sports Facilities
Commission (state
funding oversight
agency), CFO,April
2003-December 2004.
Ohio Expositions
Commission (state fair
and expo center),
Finance Director, April
1996-March 2003.
INTERESTED TRUSTEE
------------------
Edward Burke Carey* Chairman-Board Indefinite, Carey Realty 36 The Foundation of the
Date of Birth: 7/2/1945 of Trustees January 1989- Investments, Inc. (real Catholic Diocese of
Present estate development and Columbus-Trustee
consulting), President, Canisius College-Trustee
1990-Present.
OFFICERS
--------
NAME AND POSITION(S) HELD TERM OF OFFICE AND PRINCIPAL OCCUPATION(S)
DATE OF BIRTH WITH THE FUNDS LENGTH OF TIME SERVED DURING THE PAST 5 YEARS
- ------------------------ ------------------- --------------------- ---------------------------------
Bryan C. Haft President Indefinite, Employee of BISYS Fund
Date of Birth: 1/23/1965 June 2005- Services Limited Partnership
Present since 1992.
Matthew A Ebersbach Vice President Indefinite, Assistant Vice President of Fifth
Date of Birth: 1/2/1970 March 2006- Third Bank since 2001.
Present
Russell D. Ungerman Vice President Indefinite, Assistant Vice President of Fifth
Date of Birth: 2/9/1971 September 2002- Third Bank since 1998.
Present
Rodney L. Ruehle Anti-Money Indefinite, Employee of BISYS Fund
Date of Birth: 4/26/1968 Laundering and September 2001- Services Limited Partnership
Chief Compliance Present since August 1995.
Officer
Alaina Metz Assistant Secretary Indefinite, Employee of BISYS Fund
Date of Birth: 4/4/1967 September 2004- Services Limited Partnership
Present since 1995.
Aaron J. Masek Treasurer Indefinite, Employee of BISYS Fund
Date of Birth: 1/26/1974 November 2005- Services Limited Partnership
Present since July 1996.
Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund
Date of Birth: 2/13/1962 and Assistant September 2001- Services Limited Partnership
Treasurer Present since May 1995.
________________
* Mr. Carey is treated by the Trust as an "interested person" (as defined in
Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor.
Mr. Carey is an "interested person" because of his past business
transactions with Fifth Third Bank and its affiliates.
209
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
ADDITIONAL TAX INFORMATION
For the taxable year ended July 31, 2006, the following percentage of income
dividends paid by the Fund qualify for the dividends received deduction
available to corporations:
PERCENTAGE
----------
Large Cap Core Fund 100%
Equity Index Fund 100%
Balanced Fund 55%
Micro Cap Value Fund 81%
Small Cap Value Fund 14%
Multi Cap Value Fund 100%
Disciplined Large Cap Value Fund 89%
LifeModel Aggressive Fund SM 46%
LifeModel Moderately Aggressive Fund SM 27%
LifeModel Moderate Fund SM 14%
LifeModel Moderately Conservative Fund SM 10%
LifeModel Conservative Fund SM 6%
Strategic Income Fund 33%
For the period ended July 31, 2006, certain dividends paid by the Funds are
subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax
Relief Reconciliation Act of 2003. The Funds intend to designate the maximum
amount allowable as taxed at a maximum rate of 15%. Complete information will be
reported in conjunction with your 2005 Form 1099-DIV.
For the period ended July 31, 2006, the following Funds paid qualified dividend
income of (Amounts in thousands):
AMOUNT
--------
Large Cap Core Fund $1,932
Equity Index Fund 7,006
Balanced Fund 1,009
Micro Cap Value Fund 73
Small Cap Value Fund 1,220
Multi Cap Value Fund 2,970
Disciplined Large Cap Value Fund 15,131
LifeModel Aggressive Fund SM 1,365
LifeModel Moderately Aggressive Fund SM 1,866
LifeModel Moderate Fund SM 2,047
LifeModel Moderately Conservative Fund SM 469
LifeModel Conservative Fund SM 145
Strategic Income Fund 2,257
International Equity Fund 3,481
The International Equity Fund may elect to pass through to shareholders the
income tax credit for taxes paid to foreign countries. Foreign source income and
foreign tax expense per outstanding share on July 31, 2006 are as follows:
FOREIGN FOREIGN
SOURCE TAX
INCOME EXPENSE
------- -------
International Equity Fund $0.17 $0.02
If elected, the pass-through of the foreign tax credit will only affect those
persons who are shareholders on the dividend record date in December 2006. These
shareholders will receive more detailed information along with their 2006 Form
1099-DIV.
210
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
As a shareholder of the Fifth Third Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; and (2)
ongoing costs, including management fees; distribution and/or service 12b-1
fees; and other Fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fifth Third Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from February 1, 2006 through July 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
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
--------- --------- ---------------- ----------------
Small Cap Growth Fund Institutional Shares $1,000.00 $ 926.40 $ 4.87 1.02%
Class A Shares 1,000.00 925.40 6.06 1.27%
Class B Shares 1,000.00 921.80 9.63 2.02%
Class C Shares 1,000.00 922.00 9.63 2.02%
Advisor Shares 1,000.00 924.20 7.25 1.52%
Mid Cap Growth Fund Institutional Shares 1,000.00 935.00 5.23 1.09%
Class A Shares 1,000.00 934.10 6.43 1.34%
Class B Shares 1,000.00 930.40 10.00 2.09%
Class C Shares 1,000.00 930.30 10.00 2.09%
Advisor Shares 1,000.00 932.90 7.62 1.59%
Quality Growth Fund Institutional Shares 1,000.00 915.80 5.13 1.08%
Class A Shares 1,000.00 914.80 6.31 1.33%
Class B Shares 1,000.00 911.00 9.86 2.08%
Class C Shares 1,000.00 911.20 9.86 2.08%
Advisor Shares 1,000.00 913.40 7.50 1.58%
Large Cap Core Fund Institutional Shares 1,000.00 1,010.50 4.59 0.92%
Class A Shares 1,000.00 1,009.20 5.83 1.17%
Class B Shares 1,000.00 1,005.40 9.55 1.92%
Class C Shares 1,000.00 1,004.70 9.54 1.92%
Advisor Shares 1,000.00 1,007.70 7.07 1.42%
Equity Index Fund Institutional Shares 1,000.00 1,005.90 0.94 0.19%
Class A Shares 1,000.00 1,004.70 2.19 0.44%
Class B Shares 1,000.00 1,000.90 5.90 1.19%
Class C Shares 1,000.00 1,001.10 5.90 1.19%
Advisor Shares 1,000.00 1,003.60 3.43 0.69%
Select Shares 1,000.00 1,005.50 1.34 0.27%
Preferred Shares 1,000.00 1,005.20 1.69 0.34%
Trust Shares 1,000.00 1,004.70 2.19 0.44%
Balanced Fund Institutional Shares 1,000.00 971.30 4.69 0.96%
Class A Shares 1,000.00 969.70 5.91 1.21%
Class B Shares 1,000.00 965.60 9.55 1.96%
Class C Shares 1,000.00 965.60 9.55 1.96%
Advisor Shares 1,000.00 968.40 7.13 1.46%
Micro Cap Value Fund Institutional Shares 1,000.00 932.70 6.52 1.36%
Class A Shares 1,000.00 931.10 7.71 1.61%
Class B Shares 1,000.00 928.40 11.28 2.36%
Class C Shares 1,000.00 928.40 11.28 2.36%
Advisor Shares 1,000.00 930.00 8.90 1.86%
____________________________
* 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.
211
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
--------- --------- ---------------- ----------------
Small Cap Value Fund Institutional Shares $1,000.00 $ 963.60 $ 5.84 1.20%
Class A Shares 1,000.00 962.40 7.06 1.45%
Class B Shares 1,000.00 958.70 10.68 2.20%
Class C Shares 1,000.00 958.60 10.68 2.20%
Advisor Shares 1,000.00 961.20 8.27 1.70%
Multi Cap Value Fund Institutional Shares 1,000.00 1,015.50 6.45 1.29%
Class A Shares 1,000.00 1,014.30 7.69 1.54%
Class B Shares 1,000.00 1,010.60 11.42 2.29%
Class C Shares 1,000.00 1,010.90 11.42 2.29%
Advisor Shares 1,000.00 1,013.10 8.93 1.79%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,053.50 5.45 1.07%
Class A Shares 1,000.00 1,052.20 6.72 1.32%
Class B Shares 1,000.00 1,047.90 10.51 2.07%
Class C Shares 1,000.00 1,048.00 10.51 2.07%
Advisor Shares 1,000.00 1,050.50 7.98 1.57%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 983.80 0.39 0.08%
Class A Shares 1,000.00 982.50 1.62 0.33%
Class B Shares 1,000.00 978.70 5.30 1.08%
Class C Shares 1,000.00 978.70 5.30 1.08%
Advisor Shares 1,000.00 981.70 2.85 0.58%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 990.50 0.39 0.08%
Class A Shares 1,000.00 989.90 1.63 0.33%
Class B Shares 1,000.00 986.20 5.32 1.08%
Class C Shares 1,000.00 986.10 5.32 1.08%
Advisor Shares 1,000.00 988.10 2.86 0.58%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 995.10 0.40 0.08%
Class A Shares 1,000.00 993.80 1.63 0.33%
Class B Shares 1,000.00 990.10 5.33 1.08%
Class C Shares 1,000.00 990.00 5.33 1.08%
Advisor Shares 1,000.00 992.30 2.87 0.58%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 998.30 0.40 0.08%
Class A Shares 1,000.00 997.90 1.63 0.33%
Class B Shares 1,000.00 993.20 5.34 1.08%
Class C Shares 1,000.00 993.90 5.34 1.08%
Advisor Shares 1,000.00 995.20 2.87 0.58%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,004.10 0.40 0.08%
Class A Shares 1,000.00 1,002.80 1.64 0.33%
Class B Shares 1,000.00 998.90 5.35 1.08%
Class C Shares 1,000.00 998.00 5.35 1.08%
Advisor Shares 1,000.00 1,001.10 2.88 0.58%
Strategic Income Fund Institutional Shares 1,000.00 1,015.40 6.55 1.31%
Class A Shares 1,000.00 1,014.20 7.79 1.56%
Class B Shares 1,000.00 1,010.50 11.52 2.31%
Class C Shares 1,000.00 1,010.60 11.52 2.31%
Advisor Shares 1,000.00 1,013.00 9.03 1.81%
Dividend Growth Fund Institutional Shares 1,000.00 1,025.90 3.67 0.73%
Class A Shares 1,000.00 1,026.00 4.92 0.98%
Class B Shares 1,000.00 1,021.20 8.67 1.73%
Class C Shares 1,000.00 1,022.00 8.67 1.73%
Advisor Shares 1,000.00 1,022.90 6.17 1.23%
Technology Fund Institutional Shares 1,000.00 864.30 6.89 1.49%
Class A Shares 1,000.00 863.20 8.04 1.74%
Class B Shares 1,000.00 861.20 11.49 2.49%
Class C Shares 1,000.00 860.80 11.53 2.50%
Advisor Shares 1,000.00 862.60 9.28 2.01%
____________________________
* 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.
212
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
--------- --------- ---------------- ----------------
International Equity Fund Institutional Shares $1,000.00 $1,027.20 $ 6.79 1.35%
Class A Shares 1,000.00 1,025.60 8.04 1.60%
Class B Shares 1,000.00 1,021.80 11.78 2.35%
Class C Shares 1,000.00 1,021.60 11.78 2.35%
Advisor Shares 1,000.00 1,023.90 9.28 1.85%
High Yield Bond Fund Institutional Shares 1,000.00 1,001.30 1.30 0.74%
Class A Shares 1,000.00 1,000.20 1.74 0.99%
Class B Shares 1,000.00 996.10 3.05 1.74%
Class C Shares 1,000.00 996.60 3.05 1.74%
Advisor Shares 1,000.00 998.70 2.17 1.24%
Bond Fund Institutional Shares 1,000.00 1,004.30 3.58 0.72%
Class A Shares 1,000.00 1,004.10 4.82 0.97%
Class B Shares 1,000.00 999.20 8.53 1.72%
Class C Shares 1,000.00 1,000.20 8.53 1.72%
Advisor Shares 1,000.00 1,002.70 6.06 1.22%
Intermediate Bond Fund Institutional Shares 1,000.00 1,010.00 3.49 0.70%
Class A Shares 1,000.00 1,008.70 4.73 0.95%
Class B Shares 1,000.00 1,009.80 4.73 0.95%
Class C Shares 1,000.00 1,006.00 8.46 1.70%
Advisor Shares 1,000.00 1,007.70 6.02 1.21%
Short Term Bond Fund Institutional Shares 1,000.00 1,016.10 3.20 0.64%
Class A Shares 1,000.00 1,014.90 4.45 0.89%
Class C Shares 1,000.00 1,011.20 8.18 1.64%
Advisor Shares 1,000.00 1,013.00 5.69 1.14%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,008.10 3.44 0.69%
Class A Shares 1,000.00 1,006.80 4.68 0.94%
Class C Shares 1,000.00 1,002.80 8.39 1.69%
Advisor Shares 1,000.00 1,005.60 5.92 1.19%
Municipal Bond Fund Institutional Shares 1,000.00 1,006.10 3.03 0.61%
Class A Shares 1,000.00 1,005.90 4.28 0.86%
Class B Shares 1,000.00 1,001.20 7.99 1.61%
Class C Shares 1,000.00 1,002.10 7.99 1.61%
Advisor Shares 1,000.00 1,004.60 5.52 1.11%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,007.00 3.53 0.71%
Class A Shares 1,000.00 1,005.60 4.77 0.96%
Class B Shares 1,000.00 1,005.80 4.77 0.96%
Class C Shares 1,000.00 1,001.90 8.49 1.71%
Advisor Shares 1,000.00 1,004.80 5.77 1.16%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,007.00 3.93 0.79%
Class A Shares 1,000.00 1,005.70 5.17 1.04%
Class B Shares 1,000.00 1,001.10 8.88 1.79%
Class C Shares 1,000.00 1,002.00 8.89 1.79%
Advisor Shares 1,000.00 1,003.70 6.41 1.29%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,006.60 3.38 0.68%
Class A Shares 1,000.00 1,005.90 4.13 0.83%
Class B Shares 1,000.00 1,002.40 8.34 1.68%
Class C Shares 1,000.00 1,002.60 8.34 1.68%
Advisor Shares 1,000.00 1,004.30 5.86 1.18%
____________________________
* 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.
213
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. However, you may use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
--------- --------- ---------------- ----------------
Small Cap Growth Fund Institutional Shares $1,000.00 $1,019.74 $ 5.11 1.02%
Class A Shares 1,000.00 1,018.50 6.36 1.27%
Class B Shares 1,000.00 1,014.78 10.09 2.02%
Class C Shares 1,000.00 1,014.78 10.09 2.02%
Advisor Shares 1,000.00 1,017.26 7.60 1.52%
Mid Cap Growth Fund Institutional Shares 1,000.00 1,019.39 5.46 1.09%
Class A Shares 1,000.00 1,018.15 6.71 1.34%
Class B Shares 1,000.00 1,014.43 10.44 2.09%
Class C Shares 1,000.00 1,014.43 10.44 2.09%
Advisor Shares 1,000.00 1,016.91 7.95 1.59%
Quality Growth Fund Institutional Shares 1,000.00 1,019.44 5.41 1.08%
Class A Shares 1,000.00 1,018.20 6.66 1.33%
Class B Shares 1,000.00 1,014.48 10.39 2.08%
Class C Shares 1,000.00 1,014.48 10.39 2.08%
Advisor Shares 1,000.00 1,016.96 7.90 1.58%
Large Cap Core Fund Institutional Shares 1,000.00 1,020.23 4.61 0.92%
Class A Shares 1,000.00 1,018.99 5.86 1.17%
Class B Shares 1,000.00 1,015.27 9.59 1.92%
Class C Shares 1,000.00 1,015.27 9.59 1.92%
Advisor Shares 1,000.00 1,017.75 7.10 1.42%
Equity Index Fund Institutional Shares 1,000.00 1,023.85 0.95 0.19%
Class A Shares 1,000.00 1,022.61 2.21 0.44%
Class B Shares 1,000.00 1,018.89 5.96 1.19%
Class C Shares 1,000.00 1,018.89 5.96 1.19%
Advisor Shares 1,000.00 1,021.37 3.46 0.69%
Select Shares 1,000.00 1,023.46 1.35 0.27%
Preferred Shares 1,000.00 1,023.11 1.71 0.34%
Trust Shares 1,000.00 1,022.61 2.21 0.44%
Balanced Fund Institutional Shares 1,000.00 1,020.03 4.81 0.96%
Class A Shares 1,000.00 1,018.79 6.06 1.21%
Class B Shares 1,000.00 1,015.08 9.79 1.96%
Class C Shares 1,000.00 1,015.08 9.79 1.96%
Advisor Shares 1,000.00 1,017.55 7.30 1.46%
Micro Cap Value Fund Institutional Shares 1,000.00 1,018.05 6.80 1.36%
Class A Shares 1,000.00 1,016.81 8.05 1.61%
Class B Shares 1,000.00 1,013.09 11.78 2.36%
Class C Shares 1,000.00 1,013.09 11.78 2.36%
Advisor Shares 1,000.00 1,015.57 9.30 1.86%
____________________________
* 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.
214
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
--------- --------- ---------------- ----------------
Small Cap Value Fund Institutional Shares $1,000.00 $1,018.84 $ 6.01 1.20%
Class A Shares 1,000.00 1,017.60 7.25 1.45%
Class B Shares 1,000.00 1,013.88 10.99 2.20%
Class C Shares 1,000.00 1,013.88 10.99 2.20%
Advisor Shares 1,000.00 1,016.36 8.50 1.70%
Multi Cap Value Fund Institutional Shares 1,000.00 1,018.40 6.46 1.29%
Class A Shares 1,000.00 1,017.16 7.70 1.54%
Class B Shares 1,000.00 1,013.44 11.43 2.29%
Class C Shares 1,000.00 1,013.44 11.43 2.29%
Advisor Shares 1,000.00 1,015.92 8.95 1.79%
Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,019.49 5.36 1.07%
Class A Shares 1,000.00 1,018.25 6.61 1.32%
Class B Shares 1,000.00 1,014.53 10.34 2.07%
Class C Shares 1,000.00 1,014.53 10.34 2.07%
Advisor Shares 1,000.00 1,017.01 7.85 1.57%
LifeModel Aggressive Fund SM Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
Advisor Shares 1,000.00 1,021.92 2.91 0.58%
LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
Advisor Shares 1,000.00 1,021.92 2.91 0.58%
LifeModel Moderate Fund SM Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
Advisor Shares 1,000.00 1,021.92 2.91 0.58%
LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
Advisor Shares 1,000.00 1,021.92 2.91 0.58%
LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
Advisor Shares 1,000.00 1,021.92 2.91 0.58%
Strategic Income Fund Institutional Shares 1,000.00 1,018.30 6.56 1.31%
Class A Shares 1,000.00 1,017.06 7.80 1.56%
Class B Shares 1,000.00 1,013.34 11.53 2.31%
Class C Shares 1,000.00 1,013.34 11.53 2.31%
Advisor Shares 1,000.00 1,015.82 9.05 1.81%
Dividend Growth Fund Institutional Shares 1,000.00 1,021.17 3.66 0.73%
Class A Shares 1,000.00 1,019.93 4.91 0.98%
Class B Shares 1,000.00 1,016.22 8.65 1.73%
Class C Shares 1,000.00 1,016.22 8.65 1.73%
Advisor Shares 1,000.00 1,018.70 6.16 1.23%
Technology Fund Institutional Shares 1,000.00 1,017.41 7.45 1.49%
Class A Shares 1,000.00 1,016.17 8.70 1.74%
Class B Shares 1,000.00 1,012.45 12.42 2.49%
Class C Shares 1,000.00 1,012.40 12.47 2.50%
Advisor Shares 1,000.00 1,014.83 10.04 2.01%
____________________________
* 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.
215
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06
--------- --------- ---------------- ----------------
International Equity Fund Institutional Shares $1,000.00 $1,018.10 $ 6.76 1.35%
Class A Shares 1,000.00 1,016.86 8.00 1.60%
Class B Shares 1,000.00 1,013.14 11.73 2.35%
Class C Shares 1,000.00 1,013.14 11.73 2.35%
Advisor Shares 1,000.00 1,015.62 9.25 1.85%
High Yield Bond Fund Institutional Shares 1,000.00 1,021.12 3.71 0.74%
Class A Shares 1,000.00 1,019.89 4.96 0.99%
Class B Shares 1,000.00 1,016.17 8.70 1.74%
Class C Shares 1,000.00 1,016.17 8.70 1.74%
Advisor Shares 1,000.00 1,018.65 6.21 1.24%
Bond Fund Institutional Shares 1,000.00 1,021.22 3.61 0.72%
Class A Shares 1,000.00 1,019.98 4.86 0.97%
Class B Shares 1,000.00 1,016.27 8.60 1.72%
Class C Shares 1,000.00 1,016.27 8.60 1.72%
Advisor Shares 1,000.00 1,018.74 6.11 1.22%
Intermediate Bond Fund Institutional Shares 1,000.00 1,021.32 3.51 0.70%
Class A Shares 1,000.00 1,020.08 4.76 0.95%
Class B Shares 1,000.00 1,020.08 4.76 0.95%
Class C Shares 1,000.00 1,016.36 8.50 1.70%
Advisor Shares 1,000.00 1,018.79 6.06 1.21%
Short Term Bond Fund Institutional Shares 1,000.00 1,021.62 3.21 0.64%
Class A Shares 1,000.00 1,020.38 4.46 0.89%
Class C Shares 1,000.00 1,016.66 8.20 1.64%
Advisor Shares 1,000.00 1,019.14 5.71 1.14%
U.S. Government Bond Fund Institutional Shares 1,000.00 1,021.37 3.46 0.69%
Class A Shares 1,000.00 1,020.13 4.71 0.94%
Class C Shares 1,000.00 1,016.41 8.45 1.69%
Advisor Shares 1,000.00 1,018.89 5.96 1.19%
Municipal Bond Fund Institutional Shares 1,000.00 1,021.77 3.06 0.61%
Class A Shares 1,000.00 1,020.53 4.31 0.86%
Class B Shares 1,000.00 1,016.81 8.05 1.61%
Class C Shares 1,000.00 1,016.81 8.05 1.61%
Advisor Shares 1,000.00 1,019.29 5.56 1.11%
Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,021.27 3.56 0.71%
Class A Shares 1,000.00 1,020.03 4.81 0.96%
Class B Shares 1,000.00 1,020.03 4.81 0.96%
Class C Shares 1,000.00 1,016.31 8.55 1.71%
Advisor Shares 1,000.00 1,019.04 5.81 1.16%
Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,020.88 3.96 0.79%
Class A Shares 1,000.00 1,019.64 5.21 1.04%
Class B Shares 1,000.00 1,015.92 8.95 1.79%
Class C Shares 1,000.00 1,015.92 8.95 1.79%
Advisor Shares 1,000.00 1,018.40 6.46 1.29%
Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,021.42 3.41 0.68%
Class A Shares 1,000.00 1,020.68 4.16 0.83%
Class B Shares 1,000.00 1,016.46 8.40 1.68%
Class C Shares 1,000.00 1,016.46 8.40 1.68%
Advisor Shares 1,000.00 1,018.94 5.91 1.18%
____________________________
* 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.
216
ADDRESSES
- --------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Stock and Bond Mutual Funds 3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Investment Advisor Fifth Third Asset Management, Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- ------------------------------------------------------------------------------------------
Sub-Advisor (International Equity Fund only) Morgan Stanley Investment
Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- ------------------------------------------------------------------------------------------
Sub-Advisor (High Yield Bond Fund only) Fort Washington Investment
Advisors, Inc.
420 East Fourth Street
Cincinnati, Ohio 45202
- ------------------------------------------------------------------------------------------
Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Administrator, Accountant and Custodian Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- ------------------------------------------------------------------------------------------
Sub-Administrator BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc.
and Sub-Accountant 3435 Stelzer Road
Columbus, Ohio 43219
- ------------------------------------------------------------------------------------------
Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- ------------------------------------------------------------------------------------------
[LOGO] FIFTH THIRD FUNDS
9/06 AR-STBD-06
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so.
THE REGISTRANT HAS ADOPTED A CODE OF ETHICS THAT APPLIES TO THE
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER,
PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR
FUNCTIONS. THIS CODE OF ETHICS IS INCLUDED AS AN EXHIBIT.
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its code of ethics that
applies to the registrant's principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these individuals are
employed by the registrant or a third party, and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 12(a)(1), unless the registrant has elected to
satisfy paragraph (f) of this Item by posting its code of ethics on its
website pursuant to paragraph (f)(2) of this Item, or by undertaking to
provide its code of ethics to any person without charge, upon request,
pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of
ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that relates
to one or more items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
DURING THE PERIOD COVERED BY THE REPORT, WITH RESPECT TO THE REGISTRANT'S
CODE OF ETHICS THAT APPLIES TO ITS PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS; THERE HAVE BEEN NO AMENDMENTS TO, NOR ANY
WAIVERS GRANTED FROM, A PROVISION THAT RELATES TO ANY ELEMENT OF THE CODE
OF ETHICS DEFINITION ENUMERATED IN PARAGRAPH (B) OF THIS ITEM 2.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) Disclose that the registrant's board of directors has determined
that the registrant either:
(i) Has at least one audit committee financial expert serving on its
audit committee; or
(ii) Does not have an audit committee financial expert serving on its
audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an
audit committee financial expert.
3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS DAVID J. GRUBER, WHO IS
"INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
AUDIT FEES
2005 - $270,600
2006 - $320,760
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
AUDIT-RELATED FEES
2005 - $21,000
2006 - $22,000
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
TAX FEES
2005 - $91,200
2006 - $102,718
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
ALL OTHER FEES
2005 - $0
2006 - $0
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
AUDIT AND NON-AUDIT SERVICES PRE-APPROVAL POLICIES AND PROCEDURES
I. PURPOSE
UNDER THE SARBANES-OXLEY ACT OF 2002 (THE "ACT"), THE AUDIT COMMITTEE
(THE "COMMITTEE") OF THE BOARD OF TRUSTEES OF FIFTH THIRD FUNDS (THE "TRUST") IS
RESPONSIBLE FOR THE APPOINTMENT, COMPENSATION AND OVERSIGHT OF THE WORK OF THE
TRUST'S INDEPENDENT AUDITOR. AS PART OF THIS RESPONSIBILITY, THE COMMITTEE IS
REQUIRED TO GRANT APPROVAL FOR AUDIT AND NON-AUDIT SERVICES PERFORMED BY THE
INDEPENDENT AUDITOR FOR THE TRUST IN ORDER ASSURE THAT THEY DO NOT IMPAIR THE
AUDITOR'S INDEPENDENCE FROM THE TRUST. TO IMPLEMENT THESE PROVISIONS OF THE ACT,
THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") HAS ISSUED RULES SPECIFYING
THE TYPES OF SERVICES THAT THE TRUST'S INDEPENDENT AUDITOR MAY NOT PROVIDE TO
THE TRUST, AS WELL AS THE COMMITTEE'S ADMINISTRATION OF THE ENGAGEMENT OF THE
INDEPENDENT AUDITOR. UNDER THESE RULES, THE SEC HAS PROVIDED THAT A PERMISSIBLE
APPROVAL OF AUDIT AND NON-AUDIT SERVICES CAN TAKE THE FORM OF EITHER (I) AN
EXPRESS APPROVAL OF A PARTICULAR ENGAGEMENT, OR (II) A PRE-APPROVAL (WHERE A
SPECIFIC TYPE OF SERVICE IS AUTHORIZED, GENERALLY SUBJECT TO A FEE MAXIMUM). THE
LATTER TYPE OF APPROVALS ARE AUTHORIZED BY SEC RULES ONLY SUBJECT TO DETAILED
POLICIES AND PROCEDURES. ACCORDINGLY, THE COMMITTEE HAS ADOPTED THESE AUDIT AND
NON-AUDIT SERVICES PRE-APPROVAL POLICIES AND PROCEDURES, WHICH SET FORTH THE
PROCEDURES AND THE CONDITIONS PURSUANT TO WHICH SERVICES FOR THE TRUST MAY BE
PERFORMED BY THE INDEPENDENT AUDITOR UNDER PRE-APPROVALS.
II. GENERAL PRE-APPROVAL POLICIES
IT IS THE POLICY OF THE COMMITTEE THAT AUDIT AND NON-AUDIT SERVICES TO
BE PERFORMED BY THE TRUST'S INDEPENDENT AUDITOR BE PRE-APPROVED ONLY WHEN IN THE
BEST INTERESTS OF THE TRUST'S SHAREHOLDERS AND FULLY CONSISTENT WITH APPLICABLE
LAW AND, PARTICULARLY, THE MAINTENANCE OF THE AUDITOR'S INDEPENDENCE. IN
GRANTING ANY PRE-APPROVAL, CONSIDERATION SHALL BE GIVEN TO:
1. THE QUALIFICATIONS OF THE AUDITOR TO PERFORM THE SERVICES
INVOLVED;
2. THE PROPOSED COSTS (WHICH MAY BE PRESENTED AS AN ESTIMATE OR
BASED ON PROFESSIONAL TIME CHARGES SUBJECT TO A CEILING) OF
THE SERVICES AND THE REASONABLENESS THEREOF;
3. THE PERMISSIBILITY OF THE SERVICES UNDER APPLICABLE RULES AND
GUIDANCE OF THE SEC;
4. THE EFFECT, IF ANY, OF THE PERFORMANCE OF THE PROPOSED
SERVICES ON THE AUDITOR'S INDEPENDENCE;
5. THE EFFECT OF THE COMPENSATION FOR THE PROPOSED SERVICES ON
THE AUDITOR'S INDEPENDENCE; AND
6. THE EFFECT, IF ANY, OF THE PROPOSED SERVICES ON THE TRUST'S
ABILITY TO MANAGE OR CONTROL RISK OR TO IMPROVE AUDIT QUALITY.
WHILE NON-AUDIT SERVICES MAY INCLUDE REVIEWING AND/OR VALIDATING
PROCEDURES OR WORK PRODUCTS OF THE TRUST, THEY MAY NOT INCLUDE THE PRODUCTION OR
MODIFICATION OF SUCH PROCEDURES OR WORK PRODUCTS. WHILE NON-AUDIT SERVICES MAY
INCLUDE MARKET RESEARCH AND STRATEGIC INSIGHTS, SUCH SERVICES SHALL BE LIMITED
TO FACTUAL REPORTS AND SHALL NOT INCLUDE RECOMMENDATIONS. NO PRE-APPROVAL SHALL
BE MADE IN A MANNER THAT WOULD CONSTITUTE A DELEGATION TO THE TRUST'S
MANAGEMENT.
III. PROCEDURES FOR PRE-APPROVAL BY THE COMMITTEE
1. REQUESTS FOR PRE-APPROVAL SHALL BE IN WRITING AND MAY BE MADE BY EITHER
THE INDEPENDENT AUDITORS OR BY MANAGEMENT OF THE TRUST.
2. ALL REQUESTS FOR PRE-APPROVAL SHALL BE MADE TO THE FULL COMMITTEE AT
REGULARLY SCHEDULED MEETINGS THEREOF (OR AT A SPECIAL MEETING OF THE
COMMITTEE SET TO COINCIDE WITH REGULAR MEETINGS OF THE TRUST'S BOARD OF
TRUSTEES) WHENEVER PRACTICABLE.
3. UNDER NORMAL CIRCUMSTANCES, REQUESTS FOR PRE-APPROVAL SHOULD BE
PRESENTED AT LEAST 14 DAYS PRIOR (AND IN NO EVENT LATER THAN 48 HOURS
PRIOR) TO THE PROPOSED COMMENCEMENT OF THE ENGAGEMENT.
4. IF CONSIDERATION OF A REQUEST FOR PRE-APPROVAL ON THE DATES IDENTIFIED
IN SECTION III (2) WOULD NOT BE TIMELY, THE REQUESTING PARTY SHALL
NOTIFY THE TRUST'S CHAIRMAN. THE TRUST'S CHAIRMAN SHALL THEN DETERMINE
WHETHER TO SCHEDULE
A SPECIAL MEETING OF THE COMMITTEE (WHICH MAY BE CONDUCTED
TELEPHONICALLY) ON AN ALTERNATIVE DATE OR WHETHER THE REQUEST MAY
APPROPRIATELY BE PRESENTED TO A DELEGATE OF THE COMMITTEE UNDER
PROCEDURES SET FORTH IN SECTION IV BELOW.
5. REQUESTS FOR PRE-APPROVAL MAY INCLUDE, BUT ARE NOT LIMITED TO, THE
FOLLOWING SERVICES:
A. AUDIT ENGAGEMENT, PARTICULARLY FOR INTERIM PERIODS;
B. PREPARATION OF FUND TAX RETURNS;
C. REVIEW AND CONSENTS WITH RESPECT TO USE OF REPORTS IN
POST-EFFECTIVE AMENDMENTS TO THE REGISTRATION
STATEMENTS OF THE TRUST;
D. REVIEW OF IRS SHAREHOLDER MATERIALS;
E. REVIEW AND VALIDATION OF FUND PROCEDURES (E.G.,
VALUATION, INTERFUND LENDING, ETC.), AND
F. MARKET RESEARCH AND STRATEGIC INSIGHTS.
6. REQUESTS FOR PRE-APPROVAL SHOULD IDENTIFY THE NATURE OF THE SERVICES
TO BE PROVIDED IN A MANNER SUFFICIENTLY SPECIFIC TO ALLOW EVALUATION
OF THE CONSIDERATIONS IDENTIFIED ABOVE IN SECTION II.
7. REQUESTS FOR PRE-APPROVAL MUST INCLUDE AN ASSESSMENT BY THE
INDEPENDENT AUDITOR OF THEIR INDEPENDENCE SHOULD THE REQUEST BE
GRANTED AND THE PROPOSED SERVICES RENDERED.
8. THE COMMITTEE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE RECORDED
IN THE COMMITTEE'S MINUTES.
9. THE COMMITTEE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE
COMMUNICATED IN WRITING TO THE INDEPENDENT AUDITOR AND, UNDER NORMAL
CIRCUMSTANCES, A COPY OF THIS COMMUNICATION SHALL BE PROVIDED TO THE
TRUST'S MANAGEMENT.
10. THE COMMITTEE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE REPORTED
TO THE FULL BOARD OF TRUSTEES.
11. PRE-APPROVALS WILL BE GRANTED FOR A PERIOD OF NO MORE THAN ONE YEAR.
IV. PROCEDURES FOR PRE-APPROVAL BY A DELEGATE OF THE COMMITTEE
1. WHERE IT HAS BEEN DETERMINED BY THE TRUST'S CHAIRMAN THAT
CONSIDERATION OF A REQUEST FOR PRE-APPROVAL BY THE FULL COMMITTEE
WOULD NOT BE TIMELY, THE CHAIRMAN MAY DETERMINE THAT THE REQUEST BE
PRESENTED TO A MEMBER(S) OF THE COMMITTEE APPOINTED BY THE COMMITTEE
AS ITS DELEGATE (THE "DELEGATE") FOR THIS PURPOSE. (AS OF THE DATE OF
THE ADOPTION OF THESE GUIDELINES AND PROCEDURES, JOHN E. JAYMONT HAS
BEEN SO APPOINTED, AND SUCH APPOINTMENT MAY BE REVOKED OR MODIFIED BY
THE COMMITTEE AT ANY TIME.)
2. REQUESTS FOR PRE-APPROVAL SHALL BE IN WRITING AND MAY BE MADE BY
EITHER THE INDEPENDENT AUDITORS OR BY MANAGEMENT OF THE TRUST.
3. UNDER NORMAL CIRCUMSTANCES, REQUESTS FOR PRE-APPROVAL SHOULD BE
PRESENTED AT LEAST 14 DAYS PRIOR (AND IN NO EVENT LATER THAN 48 HOURS
PRIOR) TO THE PROPOSED COMMENCEMENT OF THE ENGAGEMENT.
4. REQUESTS FOR PRE-APPROVAL MAY INCLUDE, BUT ARE NOT LIMITED TO, THE
FOLLOWING SERVICES:
A. AUDIT ENGAGEMENT, PARTICULARLY FOR INTERIM PERIODS;
B. PREPARATION OF FUND TAX RETURNS;
C. REVIEW AND CONSENTS WITH RESPECT TO USE OF REPORTS IN
POST-EFFECTIVE AMENDMENTS TO THE REGISTRATION
STATEMENTS OF THE TRUST;
D. REVIEW OF IRS SHAREHOLDER MATERIALS;
E. REVIEW AND VALIDATION OF FUND PROCEDURES (E.G.,
VALUATION, INTERFUND LENDING, ETC.); AND
F. MARKET RESEARCH AND STRATEGIC INSIGHTS.
5. REQUESTS FOR PRE-APPROVAL SHOULD IDENTIFY THE NATURE OF THE SERVICES
TO BE PROVIDED IN A MANNER SUFFICIENTLY SPECIFIC TO ALLOW EVALUATION
OF THE CONSIDERATIONS IDENTIFIED ABOVE IN SECTION II.
6. REQUESTS FOR PRE-APPROVAL MUST INCLUDE AN ASSESSMENT BY THE
INDEPENDENT AUDITOR OF THEIR INDEPENDENCE SHOULD THE REQUEST BE
GRANTED AND THE PROPOSED SERVICES RENDERED.
7. THE DELEGATE'S ACTION ON A REQUEST FOR PRE-APPROVAL SHALL BE
COMMUNICATED IN WRITING TO THE INDEPENDENT AUDITOR, WITH A COPY TO
EACH OTHER MEMBER OF THE COMMITTEE AND, UNDER NORMAL CIRCUMSTANCES, TO
THE TRUST'S MANAGEMENT.
8. PRE-APPROVALS BY THE DELEGATE SHALL BE REVIEWED BY THE COMMITTEE AT A
MEETING HELD NO LATER THAN THE NEXT SCHEDULED MEETING OF THE BOARD OF
TRUSTEES OR THE COMMITTEE, WHICHEVER OCCURS SOONER. AN EARLIER REVIEW
SHALL BE CONDUCTED UPON THE WRITTEN REQUEST OF ONE OR MORE COMMITTEE
MEMBERS ADDRESSED TO THE CHAIRMAN OF THE TRUST.
9. PRE-APPROVALS BY THE DELEGATE MAY BE MODIFIED OR REVOKED BY THE
COMMITTEE, BUT WILL NOT ABSOLVE THE TRUST OF ITS RESPONSIBILITY TO
COMPENSATE THE INDEPENDENT AUDITOR FOR SERVICES RENDERED PRIOR TO SUCH
MODIFICATION OR REVOCATION.
10. THE RESULTS OF THE COMMITTEE'S REVIEW OF THE DELEGATE'S ACTION ON A
REQUEST FOR PRE-APPROVAL SHALL BE RECORDED IN THE COMMITTEE'S MINUTES
AND REPORTED TO THE FULL BOARD OF TRUSTEES.
11. PRE-APPROVALS WILL BE GRANTED BY THE DELEGATE FOR A PERIOD OF NO MORE
THAN ONE YEAR.
V. PROCEDURES FOR MONITORING ENGAGEMENTS AUTHORIZED UNDER
PRE-APPROVAL PROCEDURES
THE INDEPENDENT AUDITOR SHALL INFORM THE COMMITTEE IN WRITING UPON THE
COMMENCEMENT OF SERVICES RENDERED UNDER A PRE-APPROVAL. THE INDEPENDENT AUDITOR
SHALL THEREAFTER PROVIDE THE COMMITTEE WITH WRITTEN QUARTERLY PROGRESS REPORTS
WITHIN ONE MONTH OF THE CLOSE OF EACH CALENDAR QUARTER DETAILING THE WORK DONE
AND FEES AND OTHER CHARGES INCURRED DURING SAID CALENDAR QUARTER. SHOULD FEES
AND EXPENSES EXCEED THOSE SPECIFIED IN A PRE-APPROVAL (OR APPEAR LIKELY TO DO SO
PRIOR TO COMPLETION OF THE WORK), THE INDEPENDENT AUDITOR OR MANAGEMENT SHALL SO
APPRISE THE COMMITTEE AND AN ADDITIONAL EXPRESS APPROVAL OR PRE-APPROVAL MUST BE
OBTAINED.
VI. AMENDMENT
THESE POLICIES AND PROCEDURES MAY BE AMENDED OR REVOKED AT ANY TIME BY
THE COMMITTEE AND SHALL BE REVIEWED AT LEAST ANNUALLY IN CONJUNCTION WITH REVIEW
OF THE AUDIT COMMITTEE CHARTER.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
2005 - NONE
2006 - NONE
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
NOT APPLICABLE.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
2005 - $91,200
2006 - $102,718
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
THE AUDIT COMMITTEE HAS CONSIDERED THAT THE PROVISION OF NON-AUDIT SERVICES THAT
WERE RENDERED TO THE REGISTRANT'S INVESTMENT ADVISER (NOT INCLUDING ANY
SUBADVISER WHOSE ROLE IS PRIMARILY PORTFOLIO MANAGEMENT AND IS SUBCONTRACTED
WITH OR OVERSEEN BY ANOTHER INVESTMENT ADVISER), AND ANY ENTITY CONTROLLING,
CONTROLLED BY, OR UNDER COMMON CONTROL WITH THE INVESTMENT ADVISER THAT PROVIDES
ONGOING SERVICES TO THE REGISTRANT THAT WERE NOT PRE-APPROVED PURSUANT TO
PARAGRAPH (C)(7)(II) OF RULE 2-01 OF REGULATION S-X IS COMPATIBLE WITH
MAINTAINING THE PRINCIPAL ACCOUNTANT'S INDEPENDENCE.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
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.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
THE TRUST, EFFECTIVE SEPTEMBER 29, 2004, ADOPTED PROCEDURES BY WHICH
SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND
REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE
COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE SECOND FISCAL QUARTER OF THE PERIOD COVERED
BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO
MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS
ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2(a)
under the Act (17 CFR 270.30a-2).
CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1
under the Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange
Act, provide the certifications required by rule 30a-2(b) under the Act as an
exhibit. A certification furnished pursuant to this paragraph will not be deemed
"filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to
the liability of that section. Such certification will not be deemed to be
incorporated by reference into any filing under the Securities Act of 1933 or
the Exchange Act, except to the extent that the registrant incorporates it by
reference.
CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Fifth Third Funds
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By (Signature and Title) /s/ Aaron J. Masek Aaron J. Masek, Treasurer
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Date December 1, 2006
----------------
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) Bryan C. Haft, President
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Date December 1, 2006
----------------
By (Signature and Title) Aaron J. Masek, Treasurer
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Date December 1, 2006
----------------
INCLUDE A CODE OF ETHICS OR AMENDMENT TO A CODE OF ETHICS FILED UNDER ITEM 11(A)
OF FORM N-CSR IN A SINGLE EDGAR EXHIBIT NAMED EX-99.CODE ETH.
ALL SECTION 302 CERTIFICATIONS SHOULD BE INCLUDED IN ONE EDGAR EX-99.CERT
EXHIBIT DOCUMENT AND ALL SECTION 906 CERTIFICATIONS SHOULD BE INCLUDED IN A
SEPARATE EDGAR EX-99.906CERT EXHIBIT DOCUMENT TO FORM N-CSR. [FGS-DON'T INCLUDE
THIS LANGUAGE IN THE FILING.]