[LOGO] FIFTH THIRD FUNDS
STOCK AND BOND MUTUAL FUNDS
ASSET ALLOCATION FUNDS
MONEY MARKET MUTUAL FUNDS
CLASS A SHARES
CLASS B SHARES
CLASS C SHARES
ADVISOR SHARES
PROSPECTUS
NOVEMBER 29, 2006
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THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE
SHARES DESCRIBED IN THIS PROSPECTUS OR DETERMINED WHETHER THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
FIFTH THIRD FUNDS
STOCK AND BOND MUTUAL FUNDS
ASSET ALLOCATION FUNDS
MONEY MARKET MUTUAL FUNDS
CLASS A SHARES
CLASS B SHARES
CLASS C SHARES
ADVISOR SHARES
TABLE OF CONTENTS
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This prospectus has been arranged into different sections so that you can easily
review this important information. For more detailed information about each
Fund, please see:
OBJECTIVES, STRATEGIES AND RISKS
EQUITY FUNDS - GROWTH STYLE
Small Cap Growth Fund ................................................... 2
Mid Cap Growth Fund ..................................................... 4
Quality Growth Fund ..................................................... 6
EQUITY FUNDS - CORE STYLE
Large Cap Core Fund ..................................................... 8
Equity Index Fund ....................................................... 10
Balanced Fund ........................................................... 12
EQUITY FUNDS - VALUE STYLE
Micro Cap Value Fund .................................................... 14
Small Cap Value Fund .................................................... 16
Multi Cap Value Fund .................................................... 18
Disciplined Large Cap Value Fund ........................................ 20
ASSET ALLOCATION STRATEGY
LifeModel Aggressive Fund SM ............................................ 22
LifeModel Moderately Aggressive Fund SM ................................. 26
LifeModel Moderate Fund SM .............................................. 30
LifeModel Moderately Conservative Fund SM ............................... 34
LifeModel Conservative Fund SM .......................................... 38
STRATEGIC INCOME STRATEGY
Strategic Income Fund ................................................... 42
SPECIALTY STRATEGY
Dividend Growth Fund .................................................... 46
Technology Fund ......................................................... 48
International Equity Fund ............................................... 50
FIXED INCOME FUNDS - TAXABLE STYLE
High Yield Bond Fund .................................................... 52
Bond Fund ............................................................... 54
Intermediate Bond Fund .................................................. 56
Short Term Bond Fund .................................................... 58
U.S. Government Bond Fund ............................................... 60
FIXED INCOME FUNDS - MUNICIPAL STYLE
Municipal Bond Fund ..................................................... 62
Intermediate Municipal Bond Fund ........................................ 64
Ohio Municipal Bond Fund ................................................ 66
Michigan Municipal Bond Fund ............................................ 68
MONEY MARKET FUNDS
Prime Money Market Fund ................................................. 70
Government Money Market Fund ............................................ 71
Michigan Municipal Money Market Fund .................................... 72
Municipal Money Market Fund ............................................. 74
SHAREHOLDER FEES AND FUND EXPENSES
Fee Tables .............................................................. 76
Expense Examples ........................................................ 87
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
Name Policies ........................................................... 93
Investment Practices .................................................... 93
Investment Risks ........................................................ 99
Investment Policies of the Underlying Funds ............................. 101
Additional Information about the Funds .................................. 101
FUND MANAGEMENT
Investment Advisor and Subadvisors ...................................... 102
Portfolio Managers ...................................................... 110
Portfolio Holdings ...................................................... 115
SHAREHOLDER INFORMATION
Purchasing and Selling Fund Shares ...................................... 116
Abusive Trading Practices ............................................... 116
Purchasing and Adding To Your Shares .................................... 117
Shareholder Contact Information ......................................... 117
Selling Your Shares ..................................................... 119
Exchanging Your Shares .................................................. 120
Distribution Arrangements/Sales Charges for
Stock, Bond, and Money Market Funds ................................... 121
Dividends and Capital Gains ............................................. 128
Expenses ................................................................ 128
Taxation ................................................................ 129
FINANCIAL HIGHLIGHTS .................................................... 131
BACK COVER
Where to learn more about Fifth Third Funds
OVERVIEW
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This section provides important information about each of the stock, bond, and
money market funds (each, a "Fund" and, collectively, the "Funds"), each a
separate series of Fifth Third Funds, including the investment objective,
principal investment strategies, principal risks, and volatility and performance
information.
All Funds are managed by Fifth Third Asset Management, Inc. ("FTAM" or
"Advisor"). Morgan Stanley Investment Management Inc. ("MSIM") acts as
investment subadvisor to Fifth Third International Equity Fund. Fort Washington
Investment Advisors, Inc. ("Fort Washington") acts as investment subadvisor to
Fifth Third High Yield Bond Fund.
LIKE OTHER INVESTMENTS, YOU COULD LOSE MONEY ON YOUR INVESTMENT IN A FUND. YOUR
INVESTMENT IN A FUND IS NOT A DEPOSIT OR AN OBLIGATION OF FIFTH THIRD BANK OR
ANY OTHER BANK AND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
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 FUND.
There is no guarantee that any Fund will achieve its objective.
1
GROWTH
FIFTH THIRD SMALL CAP GROWTH FUND STYLE
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FUNDAMENTAL OBJECTIVE Long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in the equity securities of small cap companies. Small
cap companies are defined as those companies included in the Russell 2000 Growth
Index and companies with similar market capitalizations. Market capitalization,
a common measure of the size of a company, is the market price of a share of a
company's stock multiplied by the number of shares that are outstanding. As of
October 31, 2006, the market capitalization of companies included in the Russell
2000 Growth Index ranged from $90 million to $2.90 billion. The median market
capitalization of companies included in the Russell 2000 Growth Index was
approximately $625 million.
The Fund seeks to outperform the Russell 2000 Growth Index over rolling
five-year periods. The Advisor believes that stock prices are driven by earnings
growth, and that superior returns occur when a company experiences rapid and
accelerating growth due to improving fundamentals. The Advisor uses a bottom-up
investment process with fundamental research providing the basis for stock
selection. The Advisor believes this method is particularly valuable in the
small cap universe. The Advisor uses a combination of fundamental, momentum and
valuation-based disciplines for portfolio construction, with a particular focus
on companies demonstrating above-average growth and strong balance sheets.
Quantitative analysis is used to identify stocks the Advisor believes have
above-average growth and strong balance sheets. Factors considered include
return on assets, price to earnings per share, price to cash flow, and earnings
per share growth. The Advisor uses a fundamental analysis of financial
statements to look for companies that, in its opinion, have stock prices that do
not accurately reflect cash flows, tangible assets or management skills.
The Advisor also utilizes a strict sell discipline and may consider selling a
security when: it becomes overvalued or less attractive; there is deterioration
in a company's fundamentals, management, or financial reporting; one of the
Fund's holdings has exceeded the Advisor's position weighting; or a company's
relative strength falls below the Advisor's target.
The Advisor will look to manage risk through several strategies, which will
typically include maintaining minimum and maximum sector and position weightings
relative to the Russell 2000 Growth Index and monitoring risk statistics
relative to the Russell 2000 Growth Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value or periods of lackluster
performance.
SMALLER COMPANY RISK. The smaller companies in which the Fund invests are
especially sensitive to these factors and therefore may be subject to greater
share price fluctuations than other companies. Also, securities of these smaller
companies are often less liquid, thus possibly limiting the ability of the Fund
to dispose of such securities when the Advisor deems it desirable to do so. As a
result of these factors, securities of these smaller companies may expose
shareholders of the Fund to above-average risk.
GROWTH SECURITIES RISK. The Fund invests in growth oriented stocks, which are
sensitive to market movements. The prices of growth stocks tend to reflect
future expectations, and when those expectations are not met, share prices
generally fall.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
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[BAR CHART]
19.16% 27.71% -6.40% 27.73% -0.59% -4.51% -25.19% 40.11% 5.86% 4.33%
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1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
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Best quarter: Q4 2001 20.46%
Worst quarter: Q3 1998 -21.26%
Year to Date Return (1/1/06 to 9/30/06): 5.27%
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_____________________________
1 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Small Company Growth Fund. On October 29, 2001, the Kent Small Company
Growth Fund, a registered open-end investment company managed by Fifth
Third Asset Management, Inc., was merged into Fifth Third Small Cap Growth
Fund.
2
FIFTH THIRD SMALL CAP GROWTH FUND
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AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
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INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
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CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 12/4/92
Return Before Taxes -0.86% 0.99% 6.61%
Return After Taxes on Distributions 3 -2.68% -0.33% 5.19%
Return After Taxes on Distributions and Sale of Fund Shares 3 1.91% 0.75% 5.37%
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CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes -0.97% 1.00% 6.35%
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CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes 3.48% 1.27% 6.36%
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ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 11/2/92
Return Before Taxes 0.64% 1.11% 6.54%
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RUSSELL 2000(R) GROWTH INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.15% 2.28% 4.69%
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1 On October 29, 2001, the Kent Small Company Growth Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into the Fifth Third Small Cap Growth Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Small Company Growth Fund, adjusted to reflect the sales charges for Class
A shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 For the period prior to October 29, 2001, the performance of Class B,
Class C and Advisor shares reflects the performance of Institutional
shares of the Kent Small Company Growth Fund, adjusted to reflect the
expenses and sales charges for Class B, Class C and Advisor shares.
* The Russell 2000(R) Growth Index is an unmanaged index of common stocks
that measures the performance of those Russell 2000 companies with higher
price-to-book ratios and higher forecasted growth values.
3
GROWTH
FIFTH THIRD MID CAP GROWTH FUND STYLE
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FUNDAMENTAL OBJECTIVE Growth of capital. Income is a secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in common stocks of mid cap companies. Mid cap companies
are defined as those companies included in the Russell MidCap Growth Index and
companies with similar market capitalizations. Market capitalization, a common
measure of the size of a company, is the market price of a share of a company's
stock multiplied by the number of shares that are outstanding. As of October 31,
2006, the market capitalization of companies included in the Russell MidCap
Growth Index ranged from approximately $1.4 billion to approximately $18.6
billion. The average market capitalization of companies included in the Russell
MidCap Growth Index was $8.1 billion and the median market capitalization was
approximately $4.1 billion.
To achieve its secondary objective of income, the Fund relies on dividend and
interest income. The Fund may invest up to 20% of its assets in common stocks of
large cap companies (many of which pay dividends), small cap companies,
convertible securities and debt securities that pay interest.
The Fund seeks to outperform the Russell MidCap Growth Index over rolling
five-year periods. The Advisor believes that stock prices are driven by earnings
growth, and that superior returns occur when a company experiences rapid and
accelerating growth due to improving fundamentals. The Advisor uses a bottom-up
investment process with fundamental research providing the basis for stock
selection. The Advisor believes this method is particularly valuable in the mid
cap universe. The Advisor uses a combination of fundamental, momentum and
valuation-based disciplines for portfolio construction, with a particular focus
on companies demonstrating above-average growth and strong balance sheets.
Quantitative analysis is used to identify stocks the Advisor believes have
above-average growth and strong balance sheets. Factors considered include
return on assets, price to earnings per share, price to cash flow, and earnings
per share growth. The Advisor uses a fundamental analysis of financial
statements to look for companies that, in its opinion, have stock prices that do
not accurately reflect cash flows, tangible assets or management skills.
The Advisor also utilizes a strict sell discipline and may consider selling a
security when: it becomes overvalued or less attractive; there is deterioration
in a company's fundamentals, management, or financial reporting; one of the
Fund's holdings has exceeded the Advisor's position weighting; or a company's
relative strength falls below the Advisor's target.
The Advisor will look to manage risk through several strategies, which will
typically include maintaining minimum and maximum sector and position weightings
relative to the Russell MidCap Growth Index and monitoring risk statistics
relative to the Russell MidCap Growth Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value or periods of lackluster
performance.
MEDIUM-SIZED COMPANY RISK. Stocks of medium-sized companies can be more
sensitive to long market declines than larger companies, in part because they
generally do not have the financial resources that larger companies have.
DIVIDEND SECURITIES RISK. Stocks that pay regular dividends provide investors
some return on their investment, to an extent, supporting a stock's price, even
during periods when prices of equity securities are falling. However,
dividend-paying stocks, especially those that pay significant dividends, also
tend to appreciate less quickly than stocks of companies in developing
industries, which tend to reinvest profits into research, development, plant and
equipment to accommodate expansion.
GROWTH SECURITIES RISK. The Fund invests in growth oriented stocks, which are
sensitive to market movements. The prices of growth stocks tend to reflect
future expectations, and when those expectations change or are not met, share
prices generally fall.
CONVERTIBLE SECURITIES RISK. Prices of convertible securities, which include
bonds and preferred stocks, may be affected by the prices of the underlying
security, which generally is common stock.
4
FIFTH THIRD MID CAP GROWTH FUND
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VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
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[BAR CHART]
17.59% 32.64% 3.29% 16.77% 6.54% -6.53% -30.65% 37.27% 7.94% 11.05%
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1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
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Best quarter: Q4 1999 23.18%
Worst quarter: Q3 2001 -22.73%
Year to Date Return (1/1/06 to 9/30/06): 4.82%
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AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
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INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
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CLASS A SHARES (WITH 5.00% SALES CHARGE) 1/1/85
Return Before Taxes 5.47% 0.27% 7.34%
Return After Taxes on Distributions 1 5.27% 0.10% 5.92%
Return After Taxes on Distributions
and Sale of Fund Shares 1 3.82% 0.19% 5.74%
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CLASS B SHARES 2 (WITH APPLICABLE
CONTINGENT DEFERRED SALES CHARGE) 1/1/85
Return Before Taxes 5.20% 0.18% 6.98%
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CLASS C SHARES 3 (WITH APPLICABLE
CONTINGENT DEFERRED SALES CHARGE) 1/1/85
Return Before Taxes 10.22% 0.52% 7.14%
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ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 1/1/85
Returns before Taxes 7.17% 0.40% 7.29%
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RUSSELL MIDCAP(R) GROWTH INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 12.10% 1.38% 9.27%
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1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
3 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on April 24, 1996.
4 For the period prior to October 29, 2001, the quoted performance of
Advisor shares reflects the performance of Class A shares, adjusted to
reflect the expenses and sales charges for Advisor shares.
* The Russell MidCap(R) Growth Index is an unmanaged index that measures the
performance of the 800 smallest companies in the Russell 1000(R) Index
with higher price-to-book ratios and higher forecasted growth values.
5
GROWTH
FIFTH THIRD QUALITY GROWTH FUND STYLE
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FUNDAMENTAL OBJECTIVE Growth of capital. Income is a secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 65% of total assets in common stocks of high quality growth companies.
High quality growth companies are companies that, in the opinion of the Advisor,
offer excellent prospects for consistent, above-average revenue and earnings
growth. To determine whether a company is of high quality, the Advisor generally
looks for a strong record of earnings growth, as well as the company's current
ratio of debt to capital and the quality of its management. Most of the
companies in which the Fund invests are U.S. companies with a market
capitalization greater than $3 billion.
To achieve its secondary objective of income, the Fund may rely on dividend
income that it receives from common stocks and interest income it receives from
other investments, including convertible securities. The Fund reserves the right
to invest up to 35% of total assets in convertible securities. At the time of
investment, those securities are rated investment grade, that is, in the BBB
major rating category or higher by Standard & Poor's or in the Baa major rating
category or higher by Moody's, or their unrated equivalents.
The Fund seeks to outperform the Russell 1000 Growth Index over rolling
five-year periods. The Russell 1000(R) Growth Index is an unmanaged index of
common stocks that measures the performance of those Russell 1000 companies with
higher-price-to-book ratios and higher forecasted growth values. The Advisor
believes that stock prices are driven by earnings growth, and that superior
returns occur when a company experiences rapid and accelerating growth due to
improving fundamentals. The Advisor uses a bottom-up investment process with
fundamental research providing the basis for stock selection. The Advisor uses a
combination of fundamental, momentum and valuation-based disciplines for
portfolio construction, with a particular focus on companies demonstrating
above-average growth and strong balance sheets. Quantitative analysis is used to
identify stocks the Advisor believes have above-average growth and strong
balance sheets. Factors considered include return on assets, price to earnings
per share, price to cash flow, and earnings per share growth. The Advisor uses a
fundamental analysis of financial statements to look for companies that, in its
opinion, have stock prices that do not accurately reflect cash flows, tangible
assets or management skills.
The Advisor also utilizes a strict sell discipline and may consider selling a
security when: it becomes overvalued or less attractive; there is deterioration
in a company's fundamentals, management, or financial reporting; one of the
Fund's holdings has exceeded the Advisor's position weighting; or a company's
relative strength falls below the Advisor's target.
The Advisor will look to manage risk through several strategies, which will
typically include maintaining minimum and maximum sector and position weightings
relative to the Russell 1000 Growth Index and monitoring risk statistics
relative to the Russell 1000 Growth Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value and the potential for extended
periods of lackluster performance.
DIVIDEND SECURITIES RISK. Stocks that pay regular dividends provide investors
some return of their investment, to an extent, supporting the stock's price,
even during periods when the prices of equity securities generally are falling.
However, dividend-paying stocks, especially those that pay significant
dividends, also tend to appreciate less quickly than stocks of companies in
developing industries, which tend to reinvest most profits into research,
development, plant and equipment to accommodate expansion.
GROWTH SECURITIES RISK. The Fund invests in growth oriented stocks, which are
sensitive to market movements. The prices of growth stocks tend to reflect
future expectations, and when those expectations change or are not met, share
prices generally fall.
SMALLER COMPANY RISK. Stocks of smaller companies tend to be volatile and more
sensitive to long-term market declines than stocks of larger companies, in part
because they generally do not have the financial resources that larger companies
have.
CONVERTIBLE SECURITIES RISK. Prices of convertible securities, which include
bonds and preferred stocks, may be affected by the prices of the underlying
security, which generally is common stock.
6
FIFTH THIRD QUALITY GROWTH FUND
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VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to two broad-based
securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
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[BAR CHART]
23.68% 32.70% 30.50% 23.51% -4.00% -13.99% -32.71% 31.10% -1.09% 5.96%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 1998 28.18%
Worst quarter: Q2 2002 -19.77%
Year to Date Return (1/1/06 to 9/30/06): -0.12%
- --------------------------------------------------------------------------------
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AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
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INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 1/1/83
Return Before Taxes 0.69% -5.45% 6.69%
Return After Taxes on Distributions 1 0.66% -5.58% 5.60%
Return After Taxes on Distributions and Sale of Fund Shares 1 0.48% -4.57% 5.48%
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CLASS B SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 1/1/83
Return Before Taxes 0.15% -5.55% 6.32%
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CLASS C SHARES 3 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 1/1/83
Return Before Taxes 5.15% -5.21% 6.55%
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ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 1/1/83
Return Before Taxes 2.23% -5.34% 6.63%
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RUSSELL 1000(R) GROWTH INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 5.26% -3.58% 6.73%
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S&P 500 (R) INDEX** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.91% 0.54% 9.07%
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1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
3 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on April 25, 1996.
4 For the period prior to October 29, 2001, the quoted performance of
Advisor shares reflects the performance of Class A shares, adjusted to
reflect the expenses and sales charges for Advisor shares.
* The Russell 1000(R) Growth Index is an unmanaged index of common stocks
that measures the performance of those Russell 1000 companies with higher
price-to-book ratios and higher forecasted growth values.
** The S&P 500(R) Index is an unmanaged 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.
7
CORE
FIFTH THIRD LARGE CAP CORE FUND STYLE
- ------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation with current income as a
secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities of large cap companies. Large cap
companies are defined as U.S. companies included in the S&P 500(R) Index* and
companies with similar market capitalizations. Market capitalization, a common
measure of the size of a company, is the market price of a share of a company's
stock multiplied by the number of shares that are outstanding. As of September
30, 2006, the market capitalization of companies included in the S&P 500(R)
Index ranged from $1.2 billion to $398.9 billion. The average market
capitalization of companies included in the S&P 500(R) Index was approximately
$24.0 billion and the median market capitalization was approximately $11.7
billion. The Fund seeks to provide moderate and consistent outperformance of the
S&P 500(R) Index.
In managing the Fund, the Advisor adheres to a disciplined, quantitative process
for stock selection and portfolio construction. The Advisor first screens out
those companies facing financial distress, and then uses a proprietary
multi-factor model to rank stocks both across the Fund's remaining investment
universe and on a sector-specific basis. The Advisor ranks each stock on the
basis of, among other things, valuation factors (e.g., valuation multiples),
earnings quality, financial discipline, and review of purchase and sale activity
in company shares by company executives. The Advisor believes these factors
denote long-term success.
The Advisor may consider selling a security held by the Fund when it becomes
overvalued or if the issuer's earnings quality or financial management
deteriorates. Stocks that are sold are generally replaced with stocks that are
attractive based on proprietary rankings and that contribute favorably to the
risk exposures of the entire portfolio. Risk exposure is actively managed
through portfolio construction. The Advisor will typically maintain certain
minimum and maximum sector and position weightings relative to the S&P 500(R)
Index and monitor risk statistics relative to the S&P 500(R) Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
The Advisor may hedge cash balances with derivative securities or exchange
traded funds. Cash hedging is performed in an effort to reduce Fund tracking
error and minimize cash drag on performance.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value or periods of lackluster
performance.
LARGER COMPANY RISK. Significant investment in large companies also creates
various risks for the Fund. For instance, larger, more established companies
tend to operate in mature markets, which often are very competitive. Larger
companies also do not tend to respond quickly to competitive challenges,
especially to changes caused by technology or consumer preference.
VALUE SECURITIES RISK. Value stocks are those that appear to be underpriced
based upon valuation measures, such as lower price-to-earnings ratios and
price-to-book ratios. The Fund may expose shareholders to the risk of
underperformance during periods when value stocks do not perform as well as
other kinds of investments or market averages.
GROWTH SECURITIES RISK. Growth stocks are those that have a history of
above-average growth or that are expected to enter periods of above-average
growth. Growth stocks are sensitive to market movements. The prices of growth
stocks tend to reflect future expectations, and when those expectations are not
met, share prices generally fall.
DERIVATIVES RISK. When a derivative is used as a hedge against an opposite
position that the Fund also holds, any loss generated by the derivative should
be substantially offset by gains on the hedged investment, and vice versa.
Hedges are sometimes subject to imperfect matching between the derivative and
underlying security, and there can be no assurance that the Fund's hedging
transactions will be effective.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
_______________________________
* "S&P 500(R)" is a registered service mark of Standard & Poor's, a division
of the McGraw-Hill Companies, Inc., which does not sponsor and is in no
way affiliated with the Fund.
8
FIFTH THIRD LARGE CAP CORE FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to two broad-based
securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1,2
- --------------------------------------------------------------------------------
[BAR CHART]
19.14% 23.89% 27.68% 18.53% -11.47% -13.07% -23.94% 25.86% 10.33% 5.41%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 1998 21.08%
Worst quarter: Q3 2002 -18.22%
Year to Date Return (1/1/06 to 9/30/06): 9.08%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 12/1/92
Return Before Taxes 0.11% -1.67% 6.14%
Return After Taxes on Distributions 3 -0.19% -2.09% 4.70%
Return After Taxes on Distributions and Sale of Fund Shares 3 0.48% -1.52% 4.70%
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes -0.39% -1.77% 5.87%
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes 4.60% -1.40% 5.87%
- ----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 3.25% SALES CHARGE) 11/2/92
Returns Before Taxes 1.66% -1.56% 6.06%
- ----------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.91% 0.54% 9.07%
- ----------------------------------------------------------------------------------------------------------------------------------
RUSSELL 1000(R) INDEX** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.27% 1.07% 9.29%
- ----------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Growth and Income Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into the Fifth Third Large Cap Core Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Growth and Income Fund, adjusted to reflect the sales charges for Class A
shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B and Class C shares is based on the performance
for Institutional shares of Kent Growth and Income Fund, adjusted to
reflect the expenses and sales charges for Class B and Class C shares, for
the period prior to the commencement of operations of Class B and Class C
shares on October 29, 2001.
5 The quoted performance of Advisor shares reflects the performance of
Institutional Shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005. For the period prior to October 29,
2001, the quoted performance of Advisor shares reflects the performance of
the Institutional shares of Kent Growth and Income Fund, adjusted to
reflect the expenses and sales charges for Advisor shares.
* The S&P 500(R) Index is an unmanaged 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 Russell 1000(R) Index is an unmanaged index that measures the
performance of the 1,000 largest companies in the Russell 3000 Index.
9
CORE
FIFTH THIRD EQUITY INDEX FUND STYLE
- ------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation with current income as a
secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities that comprise an equity index. The
Fund invests substantially all of its assets in common stock of companies that
make up the Standard & Poor's 500 Composite Stock Price Index(R) ("S&P 500")*.
The Advisor attempts to track the performance of the S&P 500 to achieve a
correlation of 0.95 between the performance of the Fund and that of the S&P 500
without taking into account the Fund's expenses. Several factors may affect the
Fund's ability to exactly track the S&P 500's performance, including the timing
of purchases and redemptions, changes in securities markets, and changes in the
size of the Fund.
Although the Fund's investment style is essentially passive, the portfolio
managers attempt to add incremental value by timing the purchase and sale of
securities to changes in the index. Specifically, the portfolio managers may buy
or sell ahead of or after index changes to take advantage of price volatility
and obtain favorable prices. When index changes are not mirrored exactly,
additions and deletions within the portfolio generally will be made within
several days so as to maintain a 0.95 correlation to the index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
The Advisor may hedge cash balances with derivative securities or exchange
traded funds. Cash hedging is performed in an effort to reduce Fund tracking
error and minimize cash drag on performance.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value and the potential for extended
periods of lackluster performance.
INDEX INVESTING RISK. Indexing is a strategy whereby the Fund attempts to weight
its securities to match those of a broad-based securities index (the S&P 500) in
an attempt to approximate the index's performance. The Fund may purchase, retain
and sell securities at times when an actively managed fund would not do so. If
the value of securities that are heavily weighted in the index changes, you can
expect a greater risk of loss than would be the case if the Fund were not fully
invested in such securities. There is also a risk that the Fund will not
accurately track the S&P 500. Should this occur, the Board of Trustees will act
as necessary to bring the Fund's accuracy back to 0.95. A correlation of 1.0
would mean that the Fund's net asset value (including the value of its dividends
and capital gains distributions) increases or decreases in exact proportion to
changes in the S&P 500. There is also the risk that the Fund's investment
results may fail to match those of the S&P 500 and the risk that if the S&P 500
does not perform well, the investment results of the Fund may not be as
favorable as those of other funds.
_____________________________
* "S&P 500" is a registered service mark of Standard & Poor's, a division of
The McGraw-Hill Companies, Inc., which does not sponsor and is in no way
affiliated with the Fund.
DERIVATIVES RISK. When a derivative is used as a hedge against an opposite
position that the Fund also holds, any loss generated by the derivative should
be substantially offset by gains on the hedged investment, and vice versa.
Hedges are sometimes subject to imperfect matching between the derivative and
underlying security, and there can be no assurance that the Fund's hedging
transactions will be effective.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHARRT]
21.92% 32.24% 27.93% 20.24% -9.52% -12.45% -22.53% 27.81% 10.39% 4.47%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 1998 21.23%
Worst quarter: Q3 2002 -17.39%
Year to Date Return (1/1/06 to 9/30/06): 8.19%
- --------------------------------------------------------------------------------
_____________________________
1 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Index Equity Fund. On October 29, 2001, the Kent Index Equity Fund, a
registered open-end investment company managed by Fifth Third Asset
Management, Inc. was merged into Fifth Third Equity Index Fund.
10
FIFTH THIRD EQUITY INDEX FUND
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 11/25/92
Return Before Taxes -0.76% -1.03% 7.86%
Return After Taxes on Distributions 3 -0.98% -1.32% 7.32%
Return After Taxes on Distributions and Sale of Fund Shares 3 -0.21% -0.99% 6.65%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes -1.31% -1.14% 7.61%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes 3.68% -0.75% 7.61%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 11/2/92
Return Before Taxes 0.85% -0.89% 7.81%
- -----------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.91% 0.54% 9.07%
- -----------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Index Equity Fund, a registered open-end
investment company managed by Fifth Third Asset Management, Inc. was
merged into the Fifth Third Equity Index Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Index Equity Fund, adjusted to reflect the sales charges for Class A
shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 For the period prior to October 29, 2001, the quoted performance of Class
B, Class C and Advisor shares reflects the performance of the
Institutional shares of the Kent Index Equity Fund, adjusted to reflect
the expenses and sales charges for Class B, Class C and Advisor shares.
* The S&P 500(R) Index is an unmanaged 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.
11
CORE
FIFTH THIRD BALANCED FUND STYLE
- ------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Capital appreciation and income.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund uses an
asset allocation strategy, investing in three primary categories of securities:
stocks, bonds and money market instruments. The Fund intends to invest between
50% to 75% of its net assets in common stocks, convertible preferred stocks and
convertible corporate bonds, 25% to 40% of its net assets in U.S. Treasury
bills, notes and bonds, securities of U.S. Government agencies and
instrumentalities and corporate debt securities, including mortgage-backed
securities, and 0% to 25% of its net assets in money market instruments. By
analyzing financial trends and market conditions, the Fund may adjust its
allocations from time to time based on the current, relative attractiveness of
stocks versus bonds. However, the Fund takes a moderate to long-term view of
changing market conditions, and tends to avoid large, sudden shifts in the
composition of its portfolio.
The equity portion of the Fund will be primarily invested in companies
exhibiting strong records of earnings growth, and excellent prospects for above
average revenue and earnings growth (such factors include rising earnings
expectations, new management, new products, and restructuring) over the next one
to three years. The Advisor also considers balance sheet strength and cash flow,
as well as the company's debt ratio, and the quality of its management to be key
components in evaluating potential investments. The Fund will be comprised of
both growth and value-oriented stocks, typically of large and medium-sized
companies. The Advisor anticipates that most economic sectors will be
represented in this investment style and that the portfolio will typically
contain between 40-60 stocks.
The fixed income portion of the Fund tends to be invested in investment grade
bonds with maturities ranging from overnight to thirty years in length. In
selecting bond securities, the Advisor considers, among other things, the
remaining maturity, the stated interest rate, the price of the security, as well
as the financial condition of the issuer and its prospects for long-term growth
of earnings and revenues.
The Advisor may consider selling one of the Fund's holdings when a significant
deterioration in a company's strategic position or growth prospects is detected,
an individual security comprises too large of a position in the portfolio, a
company's valuations are no longer attractive or the Fund has realized its
intended profit, or a better opportunity arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
MANAGEMENT RISK - ASSET ALLOCATION STRATEGY. The Fund is exposed to risks
associated with following an asset allocation strategy, such as the risk that
the Fund will not correctly anticipate the relative performance of the different
asset classes in which it may invest.
EQUITY SECURITIES RISK. To the extent the Fund invests in stocks and convertible
securities, it assumes the risks of equity investing, including sudden and
unpredictable drops in value and periods of lackluster performance.
LARGE AND MEDIUM-SIZED COMPANY RISK. There are inherent risks to investing in
equity securities of large and medium-sized companies. For instance, changes in
the competitive environment can create business challenges that may increase the
volatility of a specific equity. A company's size, usually defined by market
capitalization, can also create various risks for the Fund. Larger, more
established companies tend to operate in mature markets, which often are very
competitive with less robust growth prospects. Stocks of mid-sized companies
tend to be more volatile and more sensitive to market declines than stocks of
larger companies, in part because they generally do not have the financial
resources that larger companies have.
FIXED INCOME SECURITIES RISK. Through its investment in bonds, the Fund assumes
the risks of bond investing, including INTEREST RATE RISK, which is the tendency
of prices to fall as interest rates rise. That risk is greater for bonds with
longer maturities.
CREDIT RISK is the risk that a bond issuer will default on principal or interest
payments. Prices of convertible securities, which include bonds and preferred
stocks, may be affected by the price of the underlying security, which generally
is common stock.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
12
FIFTH THIRD BALANCED FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to two broad-based
securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
14.23% 24.08% 17.87% 15.30% 2.09% -8.74% -16.60% 14.39% 4.62% 1.61%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 1998 17.81%
Worst quarter: Q3 2001 -14.43%
Year to Date Return (1/1/06 to 9/30/06): 1.26%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 1/1/83
Return Before Taxes -3.46% -2.54% 5.63%
Return After Taxes on Distributions 1 -3.74% -2.93% 4.12%
Return After Taxes on Distributions and Sale of Fund Shares 1 -2.05% -2.30% 4.19%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 2 (WITH APPLICABLE
CONTINGENT DEFERRED SALES CHARGE) 1/1/83
Return Before Taxes -4.22% -2.64% 5.26%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 3 (WITH APPLICABLE
CONTINGENT DEFERRED SALES CHARGE) 1/1/83
Return Before Taxes 0.79% -2.28% 5.45%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 1/1/83
Return Before Taxes -1.93% -2.45% 5.41%
- -----------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.91% 0.54% 9.07%
- -----------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS AGGREGATE BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 2.43% 5.87% 6.16%
- -----------------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
3 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on April 25, 1996.
4 For the period prior to October 29, 2001, the quoted performance of
Advisor shares reflects the performance of Class A shares, adjusted to
reflect the expenses and sales for Advisor shares.
* The S&P 500(R) Index is an unmanaged 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 Lehman Brothers Aggregate Bond Index(R) is an unmanaged total return
index measuring both capital price changes and income provided by the
underlying universe of securities and is generally representative of the
performance of the bond market as a whole.
13
VALUE
FIFTH THIRD MICRO CAP VALUE FUND STYLE
- ------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities of micro cap companies. Micro cap
companies are those companies contained within the Russell Micro Cap Value
Index, or companies with similar size characteristics. As of October 31, 2006,
the market capitalization range for companies contained within the Russell Micro
Cap Value Index was from $23 million to $1.6 billion. Equity securities consist
of common stock and securities convertible into common stock.
The Fund seeks to provide broad exposure to micro cap domestic equities and
seeks to outperform the Russell Micro Cap Value Index over a long-term
investment horizon. The Advisor seeks to invest in companies that it considers
to be "statistically cheap" (based on factors which may include, for example,
low ratio of price to earnings, price to cash flow, price to book value, and
price to sales). The Advisor also looks for companies that it believes are
undervalued relative to their earning power and long term earnings growth
prospects, adjusted for risk. The Advisor may filter less attractive companies
by analyzing cash flows, evaluating financial strength, performing normalized
earnings analysis, review of purchase and sale activity in company shares by
company executives, and through fundamental analysis, which may include a review
of assets, earnings, sales, products, markets, and management, among other
indicators. Ideally, after filtering out companies that do not meet the
Advisor's criteria above, the Advisor looks for companies that have a positive
catalyst (e.g., new products, management changes, acquisition, etc.).
The Advisor also utilizes a strict sell discipline and may consider selling a
security when: it becomes fully valued or less attractive; one of the Fund's
holdings has performed well and reached or approached the Advisor's price
target; a company fails to pass the Advisor's investment screens; or there is
deterioration in a company's fundamentals, management or financial reporting.
The Advisor will look to manage risk through several strategies, which will
typically include: maintaining minimum and maximum sector weightings relative to
the Russell Micro Cap Value Index; monitoring risk statistics relative to the
Russell Micro Cap Value Index; and monitoring trade volume.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The prices of equity securities fluctuate based on
changes in a company's activities and financial condition and in overall market
and financial conditions. To the extent the Fund invests in equity securities,
it assumes the risks of sudden and unpredictable drops in value and periods of
lackluster performance.
SMALLER COMPANY RISK. The smaller companies in which the Fund invests are
especially sensitive to the risks of equity investing and therefore may be
subject to greater share price fluctuations than other companies. Also,
securities of these smaller companies may be thinly-traded, thus possibly
limiting the ability of the Fund to dispose of such securities when the Advisor
deems it desirable to do so. As a result of these factors, securities of these
smaller companies may expose shareholders of the Fund to above average risk.
VALUE SECURITIES RISK. Value stocks are those that appear to be underpriced
based upon valuation measures, such as lower price-to-earnings ratios and
price-to-book ratios. The Fund may expose shareholders to the risk of
underperformance during periods when value stocks do not perform as well as
other kinds of investments or market averages.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to two broad-based
securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
21.21% -1.38% 22.13% 0.08% 69.16% 22.97% -0.60%
-----------------------------------------------------
1999 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 31.28%
Worst quarter: Q3 2002 -20.91%
Year to Date Return (1/1/06 to 9/30/06): 2.72%
- --------------------------------------------------------------------------------
_____________________________
1 For the period prior to August 13, 2001, the quoted performance of Class A
shares reflects the performance of the Institutional shares of the Fifth
Third/Maxus Aggressive Value Fund. On August 13, 2001, the Fifth
Third/Maxus Aggressive Value Fund, a registered open-end investment
company managed by Fifth Third Asset Management, Inc., was merged into
Fifth Third Micro Cap Value Fund.
14
FIFTH THIRD MICRO CAP VALUE FUND
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS SINCE INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 2/1/98
Return Before Taxes -5.54% 19.22% 13.95%
Return After Taxes on Distributions 3 -9.61% 17.58% 12.25%
Return After Taxes on Distributions and Sale of Fund Shares 3 1.86% 16.85% 11.82%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 2/1/98
Return Before Taxes -4.52% 19.62% 13.98%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 2/1/98
Return Before Taxes -1.03% 19.89% 14.23%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 2/1/98
Return Before Taxes -4.01% 19.45% 13.95%
- -----------------------------------------------------------------------------------------------------------------------------------
(SINCE 2/1/98)
RUSSELL 2000(R) VALUE INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.71% 13.55% 10.32%
- -----------------------------------------------------------------------------------------------------------------------------------
(SINCE 2/1/98)
RUSSELL MICROCAP TM INDEX** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 2.57% 13.95% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
(SINCE 2/1/98)
RUSSELL MICROCAP TM VALUE INDEX*** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 3.15% 19.62% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
1 On August 13, 2001, the Fifth Third/Maxus Aggressive Value Fund, a
registered open-end investment company managed by Fifth Third Asset
Management, Inc., was merged into Fifth Third Micro Cap Value Fund.
2 For the period prior to August 13, 2001, the quoted performance of Class
A, Class B and Class C shares reflects the performance of the
Institutional shares of the Fifth Third/Maxus Aggressive Value Fund,
adjusted to reflect the expenses and sales charges for Class A, Class B
and Class C shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 For the period prior to August 13, 2001, the performance of Advisor shares
reflects the performance of the Investor shares of the Fifth Third/Maxus
Aggressive Value Fund, adjusted to reflect the sales charges for Advisor
shares.
* The Russell 2000(R) Value Index is an unmanaged index of the smallest
2,000 companies in the Russell 3000(R) Index, as ranked by market
capitalization with lower price-to-book ratios and lower forecasted growth
values.
** The Russell Microcap TM Index measures performance of the microcap
segment, representing less than 3% of the U.S. equity market. The Russell
Microcap Index includes the 1,000 smallest securities in the small-cap
Russell 2000(R) Index plus the next 1,000 securities.
*** The Russell Microcap TM Value Index measures the performance of those
Russell Microcap companies with lower price-to-book ratios and lower
forecasted growth values.
15
VALUE
FIFTH THIRD SMALL CAP VALUE FUND STYLE
- ------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in the equity securities of small cap companies. Small
cap companies are defined as those companies included in the Russell 2000 Value
Index and companies with similar market capitalizations. Market capitalization,
a common measure of the size of a company, is the market price of a share of a
company's stock multiplied by the number of shares that are outstanding. As of
October 31, 2006, the market capitalization of companies included in the Russell
2000 Value Index ranged from $95 million to approximately $2.9 billion. The
median market capitalization of companies included in the Russell 2000 Value
Index was $643 million. Equity securities consist of common stock and securities
convertible into common stock. The Fund's investments in stocks may include real
estate investment trusts ("REITs"), which are pooled investment vehicles
investing primarily in income producing real estate or real estate loans or
interest.
The Fund seeks to outperform the Russell 2000 Value Index over a long-term
investment horizon, The Advisor seeks to invest in companies that it considers
to be "statistically cheap" (based on factors which may include, for example,
low ratio of price to earnings, price to cash flow, price to book value, and
price to sales). The Advisor also looks for companies that it believes are
undervalued relative to their earning power and long term earnings growth
prospects, adjusted for risk. The Advisor may filter less attractive companies
by analyzing cash flows, evaluating financial strength, performing normalized
earnings analysis, review of purchase and sale activity in company shares by
company executives, and through fundamental analysis. Ideally, attractive
companies will have a positive catalyst (e.g., new products, management changes,
acquisition, etc.).
The Advisor also utilizes a strict sell discipline and may consider selling a
security when: it becomes fully valued or less attractive; one of the Fund's
holdings has performed well and reached or approached the Advisor's price
target; a company fails to pass the Advisor's investment screens; or there is
deterioration in a company's fundamentals, management or financial reporting.
The Advisor will look to manage risk through several strategies, which will
typically include maintaining minimum and maximum sector weightings relative to
the Russell 2000 Value Index and monitoring risk statistics relative to the
Russell 2000 Value Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value and the potential for extended
periods of lackluster performance.
SMALLER COMPANY RISK. The smaller companies in which the Fund invests are
especially sensitive to the risks of equity investing and therefore may be
subject to greater share price fluctuations than other companies. Also,
securities of these smaller companies are often thinly-traded, thus possibly
limiting the ability of the Fund to dispose of such securities when the Advisor
deems it desirable to do so. As a result of these factors, securities of these
smaller companies may expose shareholders of the Fund to above average risk.
VALUE SECURITIES RISK. Value stocks are those that appear to be underpriced
based upon valuation measures, such as lower price-to-earnings ratios and
price-to-book ratios. The Fund may expose shareholders to the risk of
underperformance during periods when value stocks do not perform as well as
other kinds of investments or market averages.
REIT RISK. Investments in real estate investment trusts or "REITs" subject the
Fund to risks associated with the direct ownership of real estate. Market
conditions or events affecting the overall market for REITs, such as declining
property values or rising interest rates, could have a negative impact on the
Fund's performance.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
over time, as well as compared to a broad-based securities index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their Fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after-tax returns included in the table are only for Class A Shares.
After-tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
11.43% 11.66%
--------------
2004 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 2004 7.77%
Worst quarter: Q3 2004 -2.67%
Year to Date Return (1/1/06 to 9/30/06): 6.38%
- --------------------------------------------------------------------------------
16
FIFTH THIRD SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR SINCE INCEPTION
- ------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 4/1/03
Return Before Taxes 6.06% 19.52%
Return After Taxes on Distributions 1 3.28% 16.76%
Return After Taxes on Distributions and Sale of Fund Shares 1 5.14% 15.57%
- ------------------------------------------------------------------------------------------------------------------
CLASS B SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 4/1/03
Return Before Taxes 5.87% 20.13%
- ------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 4/1/03
Return Before Taxes 10.89% 20.87%
- ------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES (WITH 3.25% SALES CHARGE) 4/1/03
Return Before Taxes 7.79% 20.08%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 4/1/03)
RUSSELL 2000(R) VALUE INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.71% 27.94%
- ------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
* The Russell 2000(R) Value Index is an unmanaged index of the smallest
2,000 companies in the Russell 3000(R) Index, as marked by market
capitalization with lower price-to-book ratios and lower forecasted growth
values.
17
VALUE
FIFTH THIRD MULTI CAP VALUE FUND STYLE
- ------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High level of total return (using a combination of capital
appreciation and income).
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities of companies of all
capitalizations. Equity securities of multi cap companies consist of common
stock and securities convertible into common stock of companies with market
capitalizations of any size.
The Fund seeks to outperform the Russell 3000 Value Index over a long-term
investment horizon. The Advisor seeks to invest in companies that it considers
to be "statistically cheap" (based on factors which may include, for example,
low ratio of price to earnings, price to cash flow, price to book value, and
price to sales). The Advisor also looks for companies that it believes are
undervalued relative to their earning power and long term earnings growth
prospects, adjusted for risk. The Advisor may filter less attractive companies
by analyzing cash flows, evaluating financial strength, performing normalized
earnings analysis, review of purchase and sale activity in company shares by
company executives, and through fundamental analysis. Ideally, attractive
companies will have a positive catalyst (e.g., new products, management changes,
acquisition, etc.).
The Advisor also utilizes a strict sell discipline and may consider selling a
security when: it becomes fully valued or less attractive; one of the Fund's
holdings has performed well and reached or approached the Advisor's price
target; a company fails to pass the Advisor's investment screens; or there is
deterioration in a company's fundamentals, management; or financial reporting.
The Advisor will look to manage risk through several strategies, which will
typically include maintaining minimum and maximum sector weightings relative to
the Russell 3000 Value Index and monitoring risk statistics relative to the
Russell 3000 Value Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The prices of equity securities fluctuate based on
changes in a company's activities and financial condition and in overall market
conditions. To the extent the Fund invests in equity securities, it is exposed
to the risks of sudden and unpredictable drops in value and the potential for
extended periods of lackluster performance.
SMALLER COMPANY RISK. The smaller companies in which the Fund invests are
especially sensitive to the risks of equity investing and therefore may be
subject to greater share price fluctuations than other companies. Also,
securities of these smaller companies are often thinly-traded, thus possibly
limiting the ability of the Fund to dispose of such securities when the Advisor
deems it desirable to do so. As a result of these factors, securities of these
smaller companies may expose shareholders of the Fund to above-average risk.
VALUE SECURITIES RISK. Value stocks are those that appear to be underpriced
based upon valuation measures, such as lower price-to-earnings ratios and
price-to-book ratios. The Fund may expose shareholders to the risk of
underperformance during periods when value stocks do not perform as well as
other kinds of investments or market averages.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to two broad-based
securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
19.08% 28.20% -8.74% 12.95% 23.33% 7.54% -16.01% 40.23% 15.12% 7.41%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 23.06%
Worst quarter: Q3 1998 -21.07%
Year to Date Return (1/1/06 to 9/30/06): 12.34%
- --------------------------------------------------------------------------------
_____________________________
1 For the period prior to August 13, 2001, the quoted performance of Class A
shares reflects the performance of the Investor shares of the Fifth
Third/Maxus Equity Fund. On August 13, 2001, the Fifth Third/Maxus Equity
Fund, a registered open-end investment company managed by Fifth Third
Asset Management, Inc., was merged into Fifth Third Multi Cap Value Fund.
18
FIFTH THIRD MULTI CAP VALUE FUND
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 9/30/89
Return Before Taxes 2.04% 8.26% 11.17%
Return After Taxes on Distributions 3 0.74% 7.53% 9.51%
Return After Taxes on Distributions and Sale of Fund Shares 3 3.06% 7.01% 9.03%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 9/30/89
Return Before Taxes 1.71% 8.42% 11.41%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 9/30/89
Return Before Taxes 6.59% 8.69% 11.40%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 2 (WITH 3.25% SALES CHARGE) 9/30/89
Return Before Taxes 3.70% 8.43% 11.27%
- -----------------------------------------------------------------------------------------------------------------------------------
RUSSELL 3000(R) VALUE INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.85% 5.86% 11.04%
- -----------------------------------------------------------------------------------------------------------------------------------
RUSSELL MIDCAP(R) VALUE INDEX** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 12.65% 12.21% 13.65%
- -----------------------------------------------------------------------------------------------------------------------------------
1 On August 13, 2001, the Fifth Third/Maxus Equity Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.,
was merged into Fifth Third Multi Cap Value Fund.
2 For the period prior to August 13, 2001, the quoted performance of Class
A, Class B, Class C and Advisor shares reflects the performance of the
Investor shares of the Fifth Third/Maxus Equity Fund adjusted to reflect
the expenses for Class B and Class C shares and sales charges for Class A,
Class B, Class C and Advisor shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
* The Russell 3000(R) Value Index is an unmanaged index that measures the
performance of those Russell 3000(R) Index companies with lower
price-to-book ratios and lower forecasted growth values.
** The Russell MidCap(R) Value Index measures the performance of those
securities found in the Russell universe with lower price-to-book ratios
and lower forecasted growth values. The stocks are also members of the
Russell 1000(R) Value Index.
19
VALUE
FIFTH THIRD DISCIPLINED LARGE CAP VALUE FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation with current income as a
secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities of large capitalization companies.
Large capitalization companies are defined as those companies included in the
Russell 1000 Value Index and companies with similar market capitalizations.
Market capitalization, a common measure of the size of a company, is the market
price of a share of a company's stock multiplied by the number of shares that
are outstanding. As of October 31, 2006, the market capitalization of companies
included in the Russell 1000 Value Index ranged from approximately $1.6 billion
to approximately $432 billion. The average market capitalization of companies
included in the Russell 1000 Value Index was approximately $105 billion and the
median market capitalization was approximately $5.1 billion.
The Fund seeks to outperform the Russell 1000 Value Index over a long-term
investment horizon. The Advisor seeks to invest in companies that it considers
to be "statistically cheap" (based on factors which may include, for example,
low ratio of price to earnings, price to cash flow, price to book value, price
to dividend and price to sales). The Advisor also looks for companies that it
believes are undervalued relative to their earning power and long term earnings
growth prospects, adjusted for risk. Ideally, attractive companies will have a
positive catalyst (e.g., new products, management changes, acquisition, etc.).
The Advisor may consider selling a security when it performs well and reaches
its price target, when a lower price target results from a reassessment of a
company's fundamentals, when a more attractive stock is identified or when the
integrity of financial reporting becomes suspect.
The Advisor will look to manage risk through several strategies, which will
typically include maintaining minimum and maximum sector weightings relative to
the Russell 1000 Value Index and monitoring risk statistics relative to the
Russell 1000 Value Index.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value or periods of lackluster
performance.
VALUE SECURITIES RISK. Value stocks are those that appear to be underpriced
based upon valuation measures, such as lower price-to-earnings ratios and
price-to-book ratios. The Fund may expose shareholders to the risk of
underperformance during periods when value stocks do not perform as well as
other kinds of investments or market averages.
LARGER COMPANY RISK. Significant investment in large companies also creates
various risks for the Fund. For instance, larger, more established companies
tend to operate in mature markets, which often are very competitive. Larger
companies also do not tend to respond quickly to competitive challenges,
especially to challenges caused by technology and consumer preferences.
20
FIFTH THIRD DISCIPLINED LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
16.83% 38.15% 17.82% -4.87% 12.36% -12.58% -14.00% 33.88% 13.40% 5.75%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 18.93%
Worst quarter: Q3 2002 -13.94%
Year to Date Return (1/1/06 to 9/30/06): 13.25%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 1 (WITH 5.00% SALES CHARGE) 1/1/83
Return Before Taxes 0.49% 2.78% 8.83%
Return After Taxes on Distributions 2 -1.20% 1.78% 7.30%
Return After Taxes on Distributions and Sale of Fund Shares 2 2.35% 2.10% 7.08%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 3 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 1/1/83
Return Before Taxes 0.18% 2.76% 8.59%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 1/1/83
Return Before Taxes 4.92% 3.04% 8.62%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 3.25% SALES CHARGE) 1/1/83
Return Before Taxes 2.03% 2.89% 8.75%
- ----------------------------------------------------------------------------------------------------------------------------------
RUSSELL 1000(R) VALUE INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 7.05% 5.28% 10.94%
- -----------------------------------------------------------------------------------------------------------------------------------
1 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 and
sales charges 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
performance shown after tax reflects only the performance dating back to
the commencement of operation of the Fund and does not include the
performance of these collectively managed accounts prior to that date.
2 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
3 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
4 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on January 27, 1997.
5 The quoted performance of Advisor shares reflects the performance of Class
A shares, adjusted to reflect expenses and sales charges for Advisor
shares, for the period prior to commencement of operations of Advisor
shares on August 1, 2005.
* The Russell 1000(R) Value Index is an unmanaged index of common stocks
that measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values.
21
ASSET
ALLOCATION
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM STRATEGY
- --------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE The Fund seeks long-term capital appreciation by investing
primarily in a diversified group of Fifth Third Funds which invest primarily in
equity securities.
PRINCIPAL INVESTMENT STRATEGIES The Fund is a "fund of funds." The Fund's
investment strategy is to invest in a diversified group of Fifth Third Funds
Institutional shares. Because this is an aggressive allocation fund, the
majority of the Fund's assets will be invested in Fifth Third equity funds,
although a portion of its assets will be invested in Fifth Third bond and money
market funds. The Fund's investment return is diversified by its investment in
the underlying mutual funds which invest in growth and value stocks, foreign
securities, debt securities and cash or cash equivalents.
Under normal circumstances, the Fund is diversified between stocks and bonds,
with a heavy emphasis on stocks:
o From 80% to 100% of the Fund's net assets will be invested in Fifth
Third equity funds.
o Up to 20% of the Fund's net assets will be invested in Fifth Third
bond funds.
o Up to 10% of the Fund's net assets will be invested in Fifth Third
money market funds.
The Fund invests its assets in the underlying mutual funds within the following
ranges:
PERCENTAGE OF
FUND NAME FUND HOLDINGS
Small Cap Growth Fund................................................... 0-50%
Mid Cap Growth Fund..................................................... 0-50%
Quality Growth Fund..................................................... 0-50%
Large Cap Core Fund..................................................... 0-50%
Small Cap Value Fund.................................................... 0-50%
Multi Cap Value Fund.................................................... 0-50%
Disciplined Large Cap Value Fund........................................ 0-50%
International Equity Fund............................................... 0-25%
High Yield Bond Fund.................................................... 0-20%
Bond Fund............................................................... 0-20%
Intermediate Bond Fund.................................................. 0-20%
Short Term Bond Fund.................................................... 0-20%
Institutional Money Market Fund......................................... 0-10%
U.S. Treasury Money Market Fund......................................... 0-10%
The Advisor actively manages the allocations in the portfolio based on current
market and economic conditions. Changes in these conditions often lead to
adjustments in the portfolio's fund weightings.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
Each LifeModel Fund SM has a target neutral index blend, which is listed below.
The target neutral index blend is an index-based baseline style class allocation
determined by the Advisor to be optimal under static market and economic
conditions. THE TARGET NEUTRAL STYLE CLASS INDEX BLEND IS A HYPOTHETICAL BLEND
ONLY AND DOES NOT REPRESENT UNDERLYING ALLOCATIONS IN THE FUND. The Advisor will
periodically adjust the baseline style class allocation.
LIFEMODEL AGGRESSIVE TARGET NEUTRAL STYLE CLASS INDEX BLEND
Small Cap Growth Index 1 ............................................... 6.0%
Small Cap Value Index 2 ................................................ 6.0%
International Index 3 .................................................. 8.0%
Mid Cap Growth Index 4 ................................................. 10.0%
Mid Cap Value Index 5 .................................................. 10.0%
Large Cap Growth Index 6 ............................................... 18.0%
Large Cap Value Index 7 ................................................ 18.0%
Large Cap Core Index 8 ................................................. 14.0%
High Yield Bond Index 9................................................. 5.0%
Intermediate Bond Index 10 ............................................. 5.0%
For more information about the Fund and its investment strategies, please see
the section "Additional Information About the Funds' Investments.".
________________________________
1 The Small Cap Growth Index represents the Russell 2000(R) Growth Index.
The Russell 2000(R) Growth Index measures the performance of those Russell
2000 companies that have higher price-to-book values and higher forecasted
growth rates.
2 The Small Cap Value Index represents the Russell 2000(R) Value Index. The
Russell 2000(R) Value Index measures the performance of those Russell
2000 companies that have lower price-to-book ratios and lower forecasted
growth values.
3 The International Index represents the MSCI EAFE(R) Index. The MSCI
EAFE(R) Index is a widely recognized, unmanaged index composed of a sample
of companies representative of the market structure of 20 European and
Pacific Basin countries.
4 The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index.
The Russell MidCap(R) Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher
forecasted growth values.
5 The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The
Russell MidCap(R) Value Index measures the performance of those Russell
MidCap companies with lower price-to-book ratios and lower forecasted
growth values.
6 The Large Cap Growth Index represents the Russell 1000(R) Growth Index.
The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values.
7 The Large Cap Value Index represents the Russell 1000(R) Value Index. The
Russell 1000(R) Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth
values.
8 The Large Cap Core Index represents the Standard & Poor's 500(R) Index.
The Standard & Poor's 500(R) Index is comprised of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
9 The High Yield Bond Index represents the Merrill Lynch High Yield Master
Index. The Merrill Lynch High Yield Master Index 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.
10 The Intermediate Bond Index represents the Lehman Brothers
Government/Credit Intermediate Index. The Lehman Brothers
Government/Credit Intermediate Index is composed of 5,000 publicly-issued
corporate and U.S. Government debt issues rated Baa or better, with at
least one year to maturity and at least $150 million par outstanding.
22
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
PRINCIPAL INVESTMENT RISKS The principal risks of investing in the Fund are as
follows:
INVESTMENTS IN MUTUAL FUNDS. The Fund's investments are concentrated in
underlying Fifth Third Funds, so the Fund's investment performance is directly
related to the performance of the underlying funds. The Fund's net asset value
will change with changes in the equity and bond markets and the value of the
mutual funds in which it invests. In addition, the Fund must allocate its
investments among the underlying funds. As a result, the Fund does not have the
same flexibility to invest as a mutual fund without such constraints. In
addition, the Fund indirectly pays a portion of the expenses incurred by the
underlying funds.
EQUITY FUNDS. Equity funds invest primarily in equity securities (such as
stocks) that are more volatile and carry more risks than some other forms of
investment. The price of equity securities may rise or fall because of economic
or political changes or changes in a company's financial condition. Equity
securities also are subject to "stock market risk," meaning that stock prices in
general may decline over short or extended periods of time. When the value of
the stocks held by an underlying Fifth Third equity fund goes down, the value of
your investment in LifeModel Aggressive Fund SM will be affected.
BOND FUNDS. Bond funds invest primarily in fixed income securities. These
securities will increase or decrease in value based on changes in interest
rates. If rates increase, the value of a fund's investments generally declines.
On the other hand, if rates fall, the value of the investments generally
increases. The value of your investment in LifeModel Aggressive Fund SM will
change as the value of investments of the underlying Fifth Third Funds increases
and decreases. In addition, the prices of long-term bonds (bonds with a
remaining maturity of at least 10 years) tend to be more volatile than the
prices of bonds with a shorter maturity. Bond funds are subject to credit risk
which is the risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise become unable to honor a financial
obligation. Credit risk is generally higher for non-investment grade securities.
The price of a security can be adversely affected prior to actual default as its
credit status deteriorates and the probability of default rises.
SMALLER COMPANIES. Investments in smaller, newer companies may be riskier than
investments in larger, more established companies. Small companies may be more
vulnerable to economic, market and industry changes. Because economic events
have a greater impact on smaller companies, there may be greater and more
frequent changes in their stock price. This may cause unexpected and frequent
decreases in the value of the underlying Fund's investment.
FOREIGN SECURITIES. Funds investing in foreign securities are subject to special
risks in addition to those of U.S. investments. These risks include political
and economic risks, currency fluctuations, higher transaction costs, delayed
settlement, and less stringent investor protection and disclosure standards of
some foreign markets. These risks can make foreign investments more volatile and
potentially less liquid than U.S. investments.
EMERGING MARKETS. The risks associated with foreign securities are magnified in
countries in "emerging markets." These countries may have relatively unstable
governments and less established market economies than developed countries.
Emerging markets may face greater social, economic, regulatory, and political
uncertainties. These risks make emerging market securities more volatile and
less liquid than securities issued in more developed countries.
VOLATILITY AND PERFORMANCE INFORMATION. The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
over time, as well as compared to two broad-based securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
33.69% 8.43% 7.23%
----------------------
2003 04 04
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 17.46%
Worst quarter: Q1 2003 -4.57%
Year to Date Return (1/1/06 to 9/30/06): 7.28%
- --------------------------------------------------------------------------------
23
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR SINCE INCEPTION
- ------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 8/1/02
Return Before Taxes 1.85% 11.33%
Return After Taxes on Distributions 1 1.31% 10.82%
Return After Taxes on Distributions and Sale of Fund Shares 1 1.78% 9.61%
- ------------------------------------------------------------------------------------------------------------------
CLASS B SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 1.53% 11.51%
- ------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 6.46% 12.19%
- ------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 2 (WITH 3.25% SALES CHARGE) 8/1/02
Return Before Taxes 3.45% 11.66%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
WILSHIRE 5000 INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.32% 13.43%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.57% 4.09%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL AGGRESSIVE TARGET NEUTRAL STYLE CLASS INDEX BLEND***
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 7.30% 14.83%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL AGGRESSIVE TARGET NEUTRAL ASSET CLASS INDEX BLEND****
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 5.88% 12.56%
- ------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assume a continued
investment in the Fund and show the effect of taxes on Fund distributions.
Returns after taxes on distributions and sales of Fund shares assume all
shares were redeemed at the end of each measurement period, and show the
effect of any taxable gain (or offsetting loss) on redemption, as well as
the effects of taxes on Fund distributions. These after tax returns do not
reflect the effect of any applicable state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ
from those shown. After tax returns are not relevant to investors holding
shares through tax-deferred programs, such as IRA or 401(k) plans.
2 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005.
* The Wilshire 5000 Index is an unmanaged index that measures the
performance of all U.S. headquartered equity securities with readily
available price data. Over 5000 capitalization weighted security returns
are used to adjust the Wilshire 5000.
** The Lehman Brothers Intermediate Government/Credit Bond Index(R) is an
unmanaged index comprised of U.S. Treasuries issues, debt of U.S.
Government agencies, corporate debt guaranteed by the U.S. Government and
all publicly issued, fixed rate, nonconvertible investment-grade, dollar
denominated, SEC-registered corporate debt.
*** See page 22 for a description of the LifeModel Aggressive Target Neutral
Style Class Index Blend.
**** LifeModel Aggressive Target Neutral Asset Class Index Blend is an
unmanaged custom-blended index, created by Fifth Third Asset Management,
Inc., comprised of Wilshire 5000 Index (90%) and 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.
24
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
25
ASSET
ALLOCATION
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM STRATEGY
- ---------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE The Fund seeks long-term capital appreciation and growth
of income by investing primarily in a diversified group of Fifth Third Funds
which invest primarily in equity securities.
PRINCIPAL INVESTMENT STRATEGIES The Fund is a "fund of funds." The Fund's
investment strategy is to invest in a diversified group of Fifth Third Funds
Institutional shares. Because this is a moderately aggressive allocation fund,
the majority of the Fund's assets will be invested in Fifth Third equity funds,
although a portion of its assets will be invested in Fifth Third bond and money
market funds. The Fund's investment return is diversified by its investment in
the underlying mutual funds which invest in growth and value stocks, foreign
securities, debt securities and cash or cash equivalents.
Under normal circumstances, the Fund is diversified between stocks and bonds,
with an emphasis on stocks:
o From 60% to 80% of the Fund's net assets will be invested in Fifth
Third equity funds.
o From 20% to 40% of the Fund's net assets will be invested in Fifth
Third bond funds.
o Up to 10% of the Fund's net assets will be invested in Fifth Third
money market funds.
The Fund invests its assets in the underlying mutual funds within the following
ranges:
PERCENTAGE OF
FUND NAME FUND HOLDINGS
Small Cap Growth Fund................................................... 0-40%
Mid Cap Growth Fund..................................................... 0-40%
Quality Growth Fund..................................................... 0-40%
Large Cap Core Fund..................................................... 0-40%
Small Cap Value Fund.................................................... 0-40%
Multi Cap Value Fund.................................................... 0-40%
Disciplined Large Cap Value Fund........................................ 0-40%
International Equity Fund............................................... 0-20%
High Yield Bond Fund.................................................... 0-20%
Bond Fund............................................................... 0-30%
Intermediate Bond Fund.................................................. 0-30%
Short Term Bond Fund.................................................... 0-30%
Institutional Money Market Fund......................................... 0-10%
U.S. Treasury Money Market Fund......................................... 0-10%
The Advisor actively manages the allocations in the portfolio based on current
market and economic conditions. Changes in these conditions often lead to
adjustments in the portfolio's fund weightings.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
Each LifeModel Fund SM has a target neutral index blend, which is listed below.
The target neutral index blend is an index-based baseline style class allocation
determined by the Advisor to be optimal under static market and economic
conditions. THE TARGET NEUTRAL STYLE CLASS INDEX BLEND IS A HYPOTHETICAL BLEND
ONLY AND DOES NOT REPRESENT UNDERLYING ALLOCATIONS IN THE FUND. The Advisor will
periodically adjust the baseline style class allocation.
LIFEMODEL MODERATELY AGGRESSIVE TARGET NEUTRAL STYLE CLASS INDEX BLEND
Small Cap Growth Index 1 ............................................... 4.7%
Small Cap Value Index 2 ................................................ 4.7%
International Index 3 .................................................. 6.2%
Mid Cap Growth Index 4 ................................................. 7.8%
Mid Cap Value Index 5 .................................................. 7.8%
Large Cap Growth Index 6 ............................................... 14.0%
Large Cap Value Index 7 ................................................ 14.0%
Large Cap Core Index 8 ................................................. 10.8%
High Yield Bond Index 9 ................................................ 5.0%
Bond Index 10 .......................................................... 5.0%
Intermediate Bond Index 11 ............................................. 10.0%
Short Term Bond Index 12 ............................................... 10.0%
________________________________
1 The Small Cap Growth Index represents the Russell 2000(R) Growth Index.
The Russell 2000(R) Growth Index measures the performance of those
Russell 2000 companies that have higher price-to-book values and higher
forecasted growth rates.
2 The Small Cap Value Index represents the Russell 2000(R) Value Index. The
Russell 2000(R) Value Index measures the performance of those Russell
2000 companies that have lower price-to-book ratios and lower forecasted
growth values.
3 The International Index represents the MSCI EAFE(R) Index. The MSCI
EAFE(R) Index is a widely recognized, unmanaged index composed of a sample
of companies representative of the market structure of 20 European and
Pacific Basin countries.
4 The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index.
The Russell MidCap(R) Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher
forecasted growth values.
5 The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The
Russell MidCap (R) Value Index measures the performance of those Russell
MidCap companies with lower price-to-book ratios and lower forecasted
growth values.
6 The Large Cap Growth Index represents the Russell 1000(R) Growth Index.
The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values.
7 The Large Cap Value Index represents the Russell 1000(R) Value Index. The
Russell 1000(R) Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth
values.
8 The Large Cap Core Index represents the Standard & Poor's 500(R) Index.
The Standard & Poor's 500(R) Index is comprised of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
9 The High Yield Bond Index represents the Merrill Lynch High Yield Master
Index. The Merrill Lynch High Yield Master Index 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.
10 The Bond Index represents the Lehman Brothers Aggregate Bond Index. The
Lehman Brothers Aggregate Bond Index is a market value-weighted
performance benchmark for investment-grade fixed-rate debt issues,
including government, corporate, asset-backed and mortgage-backed
securities with maturities of at least one year.
11 The Intermediate Bond Index represents the Lehman Brothers
Government/Credit Intermediate Index. The Lehman Brothers
Government/Credit Intermediate Index is composed of 5,000 publicly-issued
corporate and U.S. Government debt issues rated Baa or better, with at
least one year to maturity and at least $150 million par outstanding.
12 The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government
Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond
Index tracks the trading of short-term U.S. government securities and
short-term domestic investment-grade corporate bonds with maturities
between 1 and 2.99 years.
26
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
For more information about the Fund and its investment strategies, please see
the section "Additional Information About the Funds' Investments."
PRINCIPAL INVESTMENT RISKS The principal risks of investing in the Fund are as
follows:
INVESTMENTS IN MUTUAL FUNDS. The Fund's investments are concentrated in
underlying Fifth Third Funds, so the Fund's investment performance is directly
related to the performance of the underlying funds. The Fund's net asset value
will change with changes in the equity and bond markets and the value of the
mutual funds in which it invests. In addition, the Fund must allocate its
investments among the underlying funds. As a result, the Fund does not have the
same flexibility to invest as a mutual fund without such constraints. In
addition, the Fund indirectly pays a portion of the expenses incurred by the
underlying Funds.
EQUITY FUNDS. Equity funds invest primarily in equity securities (such as
stocks) that are more volatile and carry more risks than some other forms of
investment. The price of equity securities may rise or fall because of economic
or political changes or changes in a company's financial condition. Equity
securities also are subject to "stock market risk," meaning that stock prices in
general may decline over short or extended periods of time. When the value of
the stocks held by an underlying Fifth Third equity fund goes down, the value of
your investment in LifeModel Moderately Aggressive Fund SM will be affected.
BOND FUNDS. Bond funds invest primarily in fixed income securities. These
securities will increase or decrease in value based on changes in interest
rates. If rates increase, the value of a fund's investments generally declines.
On the other hand, if rates fall, the value of the investments generally
increases. The value of your investment in LifeModel Moderately Aggressive Fund
SM will change as the value of investments of the underlying Fifth Third Funds
increases and decreases. In addition, the prices of long-term bonds (bonds with
a remaining maturity of at least 10 years) tend to be more volatile than the
prices of bonds with a shorter maturity. Bond funds are subject to credit risk
which is the risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise become unable to honor a financial
obligation. Credit risk is generally higher for non-investment grade securities.
The price of a security can be adversely affected prior to actual default as its
credit status deteriorates and the probability of default rises.
SMALLER COMPANIES. Investments in smaller, newer companies may be riskier than
investments in larger, more established companies. Small companies may be more
vulnerable to economic, market and industry changes. Because economic events
have a greater impact on smaller companies, there may be greater and more
frequent changes in their stock price. This may cause unexpected and frequent
decreases in the value of the underlying Fund's investment.
FOREIGN SECURITIES. Funds investing in foreign securities are subject to special
risks in addition to those of U.S. investments. These risks include political
and economic risks, currency fluctuations, higher transaction costs, delayed
settlement, and less stringent investor protection and disclosure standards of
some foreign markets. These risks can make foreign investments more volatile and
potentially less liquid than U.S. investments.
EMERGING MARKETS. The risks associated with foreign securities are magnified in
countries in "emerging markets." These countries may have relatively unstable
governments and less established market economies than developed countries.
Emerging markets may face greater social, economic, regulatory and political
uncertainties. These risks make emerging market securities more volatile and
less liquid than securities issued in more developed countries.
VOLATILITY AND PERFORMANCE INFORMATION. The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
over time, as well as compared to two broad-based securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
27.13% 7.08% 5.94%
--------------------
2003 04 04
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 13.90%
Worst quarter: Q1 2003 -2.85%
Year to Date Return (1/1/06 to 9/30/06): 6.66%
- --------------------------------------------------------------------------------
27
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR SINCE INCEPTION
- ------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 8/1/02
Return Before Taxes 0.68% 10.54%
Return After Taxes on Distributions 1 -0.10% 9.89%
Return After Taxes on Distributions and Sale of Fund Shares 1 0.90% 8.82%
- ------------------------------------------------------------------------------------------------------------------
CLASS B SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 0.14% 10.73%
- ------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 5.12% 11.40%
- ------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 2 (WITH 3.25% SALES CHARGE) 8/1/02
Return Before Taxes 2.27% 10.87%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
WILSHIRE 5000 INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.32% 13.43%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.57% 4.09%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL MODERATELY AGGRESSIVE TARGET NEUTRAL STYLE CLASS INDEX BLEND***
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.15% 12.47%
- ------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL MODERATELY AGGRESSIVE TARGET NEUTRAL ASSET CLASS INDEX BLEND****
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.96% 10.77%
- ------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assume a continued
investment in the Fund and show the effect of taxes on Fund distributions.
Returns after taxes on distributions and sales of Fund shares assume all
shares were redeemed at the end of each measurement period, and show the
effect of any taxable gain (or offsetting loss) on redemption, as well as
the effects of taxes on Fund distributions. These after tax returns do not
reflect the effect of any applicable state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ
from those shown. After tax returns are not relevant to investors holding
shares through tax-deferred programs, such as IRA or 401(k) plans.
2 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005.
* The Wilshire 5000 Index is an unmanaged index that measures the
performance of all U.S. headquartered equity securities with readily
available price data. Over 5000 capitalization weighted security returns
are used to adjust the Wilshire 5000.
** The Lehman Brothers Intermediate Government/Credit Bond Index(R) is an
unmanaged index comprised of U.S. Treasuries issues, debt of U.S.
Government agencies, corporate debt guaranteed by the U.S. Government and
all publicly issued, fixed rate, nonconvertible investment-grade, dollar
denominated, SEC-registered corporate debt.
*** See page 26 for a description of the LifeModel Moderately Aggressive
Target Neutral Style Class Index Blend
**** LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is
an unmanaged custom-blended index, created by Fifth Third Asset
Management, Inc., comprised of Wilshire 5000 Index (70%) and 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.
28
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
29
ASSET
ALLOCATION
FIFTH THIRD LIFEMODEL MODERATE FUND SM STRATEGY
- ---------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE The Fund seeks high total return consistent with the
preservation of capital by investing primarily in a diversified group of Fifth
Third Funds which invest primarily in equity and fixed income securities.
PRINCIPAL INVESTMENT STRATEGIES The Fund is a "fund of funds." The Fund's
investment strategy is to invest in a diversified group of Fifth Third Funds
Institutional shares. Because this is a moderate growth allocation fund,
approximately half of the Fund's assets will be invested in Fifth Third equity
funds and approximately half will be invested in Fifth Third bond funds,
although a portion of the Fund's assets will be invested in Fifth Third money
market funds. The Fund's investment return is diversified by its investment in
the underlying mutual funds which invest in growth and value stocks, foreign
securities, debt securities and cash or cash equivalents.
Under normal circumstances, the Fund is diversified between stocks and bonds:
o From 40% to 60% of the Fund's net assets will be invested in Fifth
Third equity funds.
o From 40% to 60% of the Fund's net assets will be invested in Fifth
Third bond funds.
o Up to 15% of the Fund's net assets will be invested in Fifth Third
money market funds.
The Fund invests its assets in the underlying mutual funds within the following
ranges:
PERCENTAGE OF
FUND NAME FUND HOLDINGS
Small Cap Growth Fund................................................... 0-30%
Mid Cap Growth Fund..................................................... 0-30%
Quality Growth Fund..................................................... 0-30%
Large Cap Core Fund..................................................... 0-30%
Small Cap Value Fund.................................................... 0-30%
Multi Cap Value Fund.................................................... 0-30%
Disciplined Large Cap Value Fund........................................ 0-30%
International Equity Fund............................................... 0-15%
High Yield Bond Fund.................................................... 0-20%
Bond Fund............................................................... 0-40%
Intermediate Bond Fund.................................................. 0-40%
Short Term Bond Fund.................................................... 0-40%
Institutional Money Market Fund......................................... 0-15%
U.S. Treasury Money Market Fund......................................... 0-15%
The Advisor actively manages the allocations in the portfolio based on current
market and economic conditions. Changes in these conditions often lead to
adjustments in the portfolio's fund weightings.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
Each LifeModel Fund SM has a target neutral index blend, which is listed below.
The target neutral index blend is an index-based baseline style class allocation
determined by the Advisor to be optimal under static market and economic
conditions. THE TARGET NEUTRAL STYLE CLASS INDEX BLEND IS A HYPOTHETICAL BLEND
ONLY AND DOES NOT REPRESENT UNDERLYING ALLOCATIONS IN THE FUND. The Advisor will
periodically adjust the baseline style class allocation.
LIFEMODEL MODERATE TARGET NEUTRAL STYLE CLASS INDEX BLEND
Small Cap Growth Index 1 ............................................... 3.3%
Small Cap Value Index 2 ................................................ 3.3%
International Index 3 .................................................. 4.4%
Mid Cap Growth Index 4 ................................................. 5.6%
Mid Cap Value Index 5 .................................................. 5.6%
Large Cap Growth Index 6 ............................................... 10.0%
Large Cap Value Index 7 ................................................ 10.0%
Large Cap Core Index 8.................................................. 7.8%
High Yield Bond Index 9 ................................................ 5.0%
Bond Index 10 .......................................................... 10.0%
Intermediate Bond Index 11 ............................................. 20.0%
Short Term Bond Index 12 ............................................... 15.0%
________________________________
1 The Small Cap Growth Index represents the Russell 2000(R) Growth Index.
The Russell 2000(R) Growth Index measures the performance of those Russell
2000 companies that have higher price-to-book values and higher forecasted
growth rates.
2 The Small Cap Value Index represents the Russell 2000(R) Value Index. The
Russell 2000(R) Value Index measures the performance of those Russell 2000
companies that have lower price-to-book ratios and lower forecasted growth
values.
3 The International Index represents the MSCI EAFE(R) Index. The MSCI
EAFE(R) Index is a widely recognized, unmanaged index composed of a sample
of companies representative of the market structure of 20 European and
Pacific Basin countries.
4 The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index.
The Russell MidCap(R) Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher
forecasted growth values.
5 The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The
Russell MidCap(R) Value Index measures the performance of those Russell
MidCap companies with lower price-to-book ratios and lower forecasted
growth values.
6 The Large Cap Growth Index represents the Russell 1000(R) Growth Index.
The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values.
7 The Large Cap Value Index represents the Russell 1000(R) Value Index. The
Russell 1000(R) Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth
values.
8 The Large Cap Core Index represents the Standard & Poor's 500(R) Index.
The Standard & Poor's 500(R) Index is comprised of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
9 The High Yield Bond Index represents the Merrill Lynch High Yield Master
Index. The Merrill Lynch High Yield Master Index 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.
10 The Bond Index represents the Lehman Brothers Aggregate Bond Index. The
Lehman Brothers Aggregate Bond Index is a market value-weighted
performance benchmark for investment-grade fixed-rate debt issues,
including government, corporate, asset-backed and mortgage-backed
securities with maturities of at least one year.
11 The Intermediate Bond Index represents the Lehman Brothers
Government/Credit Intermediate Index. The Lehman Brothers
Government/Credit Intermediate Index is composed of 5,000 publicly-issued
corporate and U.S. Government debt issues rated Baa or better, with at
least one year to maturity and at least $150 million par outstanding.
12 The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government
Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond
Index tracks the trading of short-term U.S. government securities and
short-term domestic investment-grade corporate bonds with maturities
between 1 and 2.99 years.
30
FIFTH THIRD LIFEMODEL MODERATE FUND SM
- --------------------------------------------------------------------------------
For more information about the Fund and its investment strategies, please see
the section "Additional Information About the Funds' Investments."
PRINCIPAL INVESTMENT RISKS The principal risks of investing in the Fund are as
follows:
INVESTMENTS IN MUTUAL FUNDS. The Fund's investments are concentrated in
underlying Fifth Third Funds, so the Fund's investment performance is directly
related to the performance of the underlying Funds. The Fund's net asset value
will change with changes in the equity and bond markets and the value of the
mutual funds in which it invests. In addition, the Fund must allocate its
investments among the underlying funds. As a result, the Fund does not have the
same flexibility to invest as a mutual fund without such constraints. In
addition, the Fund indirectly pays a portion of the expenses incurred by the
underlying Funds.
EQUITY FUNDS. Equity funds invest primarily in equity securities (such as
stocks) that are more volatile and carry more risks than some other forms of
investment. The price of equity securities may rise or fall because of economic
or political changes or changes in a company's financial condition. Equity
securities also are subject to "stock market risk," meaning that stock prices in
general may decline over short or extended periods of time. When the value of
the stocks held by an underlying Fifth Third equity fund goes down, the value of
your investment in LifeModel Moderate Fund SM will be affected.
BOND FUNDS. Bond funds invest primarily in fixed income securities. These
securities will increase or decrease in value based on changes in interest
rates. If rates increase, the value of a fund's investments generally declines.
On the other hand, if rates fall, the value of the investments generally
increases. The value of your investment in LifeModel Moderate Fund SM will
change as the value of investments of the underlying Fifth Third Funds increases
and decreases. In addition, the prices of long-term bonds (bonds with a
remaining maturity of at least 10 years) tend to be more volatile than the
prices of bonds with a shorter maturity. Bond funds are subject to credit risk
which is the risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise become unable to honor a financial
obligation. Credit risk is generally higher for non-investment grade securities.
The price of a security can be adversely affected prior to actual default as its
credit status deteriorates and the probability of default rises.
SMALLER COMPANIES. Investments in smaller, newer companies may be riskier than
investments in larger, more established companies. Small companies may be more
vulnerable to economic, market and industry changes. Because economic events
have a greater impact on smaller companies, there may be greater and more
frequent changes in their stock price. This may cause unexpected and frequent
decreases in the value of the underlying Fund's investment.
FOREIGN SECURITIES. Funds investing in foreign securities are subject to special
risks in addition to those of U.S. investments. These risks include political
and economic risks, currency fluctuations, higher transaction costs, delayed
settlement, and less stringent investor protection and disclosure standards of
some foreign markets. These risks can make foreign investments more volatile and
potentially less liquid than U.S. investments.
EMERGING MARKETS. The risks associated with foreign securities are magnified in
countries in "emerging markets." These countries may have relatively unstable
governments and less established market economies than developed countries.
Emerging markets may face greater social, economic, regulatory, and political
uncertainties. These risks make emerging market securities more volatile and
less liquid than securities issued in more developed countries.
VOLATILITY AND PERFORMANCE INFORMATION. The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
over time, as well as compared to two broad-based securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
20.42% 5.96% 4.82%
------------------------
2003 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 10.46%
Worst quarter: Q1 2003 -1.63%
Year to Date Return (1/1/06 to 9/30/06): 5.62%
- --------------------------------------------------------------------------------
31
FIFTH THIRD LIFEMODEL MODERATE FUND SM
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR SINCE INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 8/1/02
Return Before Taxes -0.41% 7.40%
Return After Taxes on Distributions 1 -1.36% 6.61%
Return After Taxes on Distributions and Sale of Fund Shares 1 0.17% 5.97%
- ----------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes -1.01% 7.47%
- ----------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 4.06% 8.23%
- ----------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 2 (WITH 3.25% SALES CHARGE) 8/1/02
Return Before Taxes 1.11% 7.67%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
WILSHIRE 5000 INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.32% 13.43%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.57% 4.09%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL MODERATE TARGET NEUTRAL STYLE CLASS INDEX BLEND***
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.96% 10.15%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL MODERATE TARGET NEUTRAL ASSET CLASS INDEX BLEND****
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.03% 8.92%
- ----------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assume a continued
investment in the Fund and show the effect of taxes on Fund distributions.
Returns after taxes on distributions and sales of Fund shares assume all
shares were redeemed at the end of each measurement period, and show the
effect of any taxable gain (or offsetting loss) on redemption, as well as
the effects of taxes on Fund distributions. These after tax returns do not
reflect the effect of any applicable state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ
from those shown. After tax returns are not relevant to investors holding
shares through tax-deferred programs, such as IRA or 401(k) plans.
2 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005.
* The Wilshire 5000 Index is an unmanaged index that measures the
performance of all U.S. headquartered equity securities with readily
available price data. Over 5000 capitalization weighted security returns
are used to adjust the Wilshire 5000.
** The Lehman Brothers Intermediate Government/Credit Bond Index(R) is an
unmanaged index comprised of U.S. Treasuries issues, debt of U.S.
Government agencies, corporate debt guaranteed by the U.S. Government and
all publicly issued, fixed rate, nonconvertible investment-grade, dollar
denominated, SEC-registered corporate debt
*** See page 30 for a description of the LifeModel Moderate Target Neutral
Style Class Index Blend.
**** LifeModel Moderate Target Neutral Asset Class Index Blend is an unmanaged
custom-blended index, created by Fifth Third Asset Management, Inc.,
comprised of Wilshire 5000 Index (50%) and 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.
32
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
33
ASSET
ALLOCATION
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM STRATEGY
- ---------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE The Fund seeks income and capital appreciation by
investing primarily in a diversified group of Fifth Third Funds which invest
primarily in fixed income and equity securities.
PRINCIPAL INVESTMENT STRATEGIES The Fund is a "fund of funds." The Fund's
investment strategy is to invest in a diversified group of Fifth Third Funds
Institutional shares. Because this is a moderately conservative allocation fund,
the majority of the Fund's assets will be invested in Fifth Third bond and
equity funds, although a portion of its assets will be invested in Fifth Third
money market funds. The Fund's investment return is diversified by its
investment in the underlying mutual funds which invest in debt securities,
growth and value stocks, foreign securities and cash or cash equivalents.
Under normal circumstances, the Fund is diversified between stocks and bonds,
with an emphasis on bonds:
o From 50% to 70% of the Fund's net assets will be invested in Fifth
Third bond funds.
o From 30% to 50% of the Fund's net assets will be invested in Fifth
Third equity funds.
o Up to 20% of the Fund's net assets will be invested in Fifth Third
money market funds.
The Fund invests its assets in the underlying mutual funds within the following
ranges:
PERCENTAGE OF
FUND NAME FUND HOLDINGS
Small Cap Growth Fund................................................ 0-25%
Mid Cap Growth Fund.................................................. 0-25%
Quality Growth Fund.................................................. 0-25%
Large Cap Core Fund.................................................. 0-25%
Small Cap Value Fund................................................. 0-25%
Multi Cap Value Fund................................................. 0-25%
Disciplined Large Cap Value Fund..................................... 0-25%
International Equity Fund............................................ 0-10%
High Yield Bond Fund................................................. 0-20%
Bond Fund............................................................ 0-50%
Intermediate Bond Fund............................................... 0-50%
Short Term Bond Fund................................................. 0-50%
Institutional Money Market Fund...................................... 0-20%
U.S. Treasury Money Market Fund...................................... 0-20%
The Advisor actively manages the allocations in the portfolio based on current
market and economic conditions. Changes in these conditions often lead to
adjustments in the portfolio's fund weightings.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
Each LifeModel Fund SM has a target neutral index blend, which is listed below.
The target neutral index blend is an index-based baseline style class allocation
determined by the Advisor to be optimal under static market and economic
conditions. THE TARGET NEUTRAL STYLE CLASS INDEX BLEND IS A HYPOTHETICAL BLEND
ONLY AND DOES NOT REPRESENT UNDERLYING ALLOCATIONS IN THE FUND. The Advisor will
periodically adjust the baseline style class allocation.
LIFEMODEL MODERATELY CONSERVATIVE TARGET NEUTRAL STYLE
CLASS INDEX BLEND
Small Cap Growth Index 1 ............................................ 2.7%
Small Cap Value Index 2 ............................................. 2.7%
International Index 3 ............................................... 3.6%
Mid Cap Growth Index 4 .............................................. 4.4%
Mid Cap Value Index 5 ............................................... 4.4%
Large Cap Growth Index 6 ............................................ 8.0%
Large Cap Value Index 7 ............................................. 8.0%
Large Cap Core Index 8............................................... 6.2%
High Yield Bond Index 9 ............................................. 5.0%
Bond Index 10 ....................................................... 10.0%
Intermediate Bond Index 11 .......................................... 30.0%
Short Term Bond Index 12............................................. 15.0%
__________________________
1 The Small Cap Growth Index represents the Russell 2000(R) Growth Index.
The Russell 2000(R) Growth Index measures the performance of those
Russell 2000 companies that have higher price-to-book values and higher
forecasted growth rates.
2 The Small Cap Value Index represents the Russell 2000(R) Value Index. The
Russell 2000(R) Value Index measures the performance of those Russell
2000 companies that have lower price-to-book ratios and lower forecasted
growth values.
3 The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE
(R) Index is a widely recognized, unmanaged index composed of a sample of
companies representative of the market structure of 20 European and
Pacific Basin countries.
4 The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index.
The Russell MidCap(R) Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher
forecasted growth values.
5 The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The
Russell MidCap(R) Value Index measures the performance of those Russell
MidCap companies with lower price-to-book ratios and lower forecasted
growth values.
6 The Large Cap Growth Index represents the Russell 1000(R) Growth Index.
The Russell 1000(R) Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values.
7 The Large Cap Value Index represents the Russell 1000(R) Value Index. The
Russell 1000(R) Value Index measures the performance of those Russell
1000 companies with lower price-to-book ratios and lower forecasted growth
values.
8 The Large Cap Core Index represents the Standard & Poor's 500(R) Index.
The Standard & Poor's 500(R) Index is comprised of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
9 The High Yield Bond Index represents the Merrill Lynch High Yield Master
Index. The Merrill Lynch High Yield Master Index 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.
10 The Bond Index represents the Lehman Brothers Aggregate Bond Index. The
Lehman Brothers Aggregate Bond Index is a market value-weighted
performance benchmark for investment-grade fixed-rate debt issues,
including government, corporate, asset-backed and mortgage-backed
securities with maturities of at least one year.
11 The Intermediate Bond Index represents the Lehman Brothers
Government/Credit Intermediate Index. The Lehman Brothers
Government/Credit Intermediate Index is composed of 5,000 publicly-issued
corporate and U.S. Government debt issues rated Baa or better, with at
least one year to maturity and at least $150 million par outstanding.
12 The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government
Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond
Index tracks the trading of short-term U.S. government securities and
short-term domestic investment-grade corporate bonds with maturities
between 1 and 2.99 years.
34
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
For more information about the Fund and its investment strategies, please see
the section "Additional Information About the Funds' Investments."
PRINCIPAL INVESTMENT RISKS The principal risks of investing in the Fund are as
follows:
INVESTMENTS IN MUTUAL FUNDS. The Fund's investments are concentrated in
underlying Fifth Third Funds, so the Fund's investment performance is directly
related to the performance of the underlying funds. The Fund's net asset value
will change with changes in the equity and bond markets and the value of the
mutual funds in which it invests. In addition, the Fund must allocate its
investments among the underlying funds. As a result, the Fund does not have the
same flexibility to invest as a mutual fund without such constraints. In
addition, the Fund indirectly pays a portion of the expenses incurred by the
underlying Funds.
EQUITY FUNDS. Equity funds invest primarily in equity securities (such as
stocks) that are more volatile and carry more risks than some other forms of
investment. The price of equity securities may rise or fall because of economic
or political changes or changes in a company's financial condition. Equity
securities also are subject to "stock market risk," meaning that stock prices in
general may decline over short or extended periods of time. When the value of
the stocks held by an underlying Fifth Third equity fund goes down, the value of
your investment in LifeModel Moderately Conservative Fund SM will be affected.
BOND FUNDS. Bond funds invest primarily in fixed income securities. These
securities will increase or decrease in value based on changes in interest
rates. If rates increase, the value of a fund's investments generally declines.
On the other hand, if rates fall, the value of the investments generally
increases. The value of your investment in LifeModel Moderately Conservative
Fund SM will change as the value of investments of the underlying Fifth Third
Funds increases and decreases. In addition, the prices of long-term bonds (bonds
with a remaining maturity of at least 10 years) tend to be more volatile than
the prices of bonds with a shorter maturity. Bond funds are subject to credit
risk, which is the risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise become unable to honor a financial
obligation. Credit risk is generally higher for non-investment grade securities.
The price of a security can be adversely affected prior to actual default as its
credit status deteriorates and the probability of default rises.
SMALLER COMPANIES. Investments in smaller, newer companies may be riskier than
investments in larger, more established companies. Small companies may be more
vulnerable to economic, market and industry changes. Because economic events
have a greater impact on smaller companies, there may be greater and more
frequent changes in their stock price. This may cause unexpected and frequent
decreases in the value of the underlying Fund's investment.
FOREIGN SECURITIES. Funds investing in foreign securities are subject to special
risks in addition to those of U.S. investments. These risks include political
and economic risks, currency fluctuations, higher transaction costs, delayed
settlement, and less stringent investor protection and disclosure standards of
some foreign markets. These risks can make foreign investments more volatile and
potentially less liquid than U.S. investments.
EMERGING MARKETS. The risks associated with foreign securities are magnified in
countries in "emerging markets." These countries may have relatively unstable
governments and less established market economies than developed countries.
Emerging markets may face greater social, economic, regulatory, and political
uncertainties. These risks make emerging market securities more volatile and
less liquid than securities issued in more developed countries.
VOLATILITY AND PERFORMANCE INFORMATION. The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
over time, as well as compared to two broad-based securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, C and Advisor Shares will differ from the returns for Class A Shares
(which are shown in the bar chart) because of differences in expenses of each
class. The table assumes that shareholders redeem their fund shares at the end
of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
16.88% 5.02% 3.98%
------------------------
2003 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 8.92%
Worst quarter: Q1 2003 -1.30%
Year to Date Return (1/1/06 to 9/30/06): 5.24%
- --------------------------------------------------------------------------------
35
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR SINCE INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 8/1/02
Return Before Taxes -1.23% 5.65%
Return After Taxes on Distributions 1 -2.35% 4.59%
Return After Taxes on Distributions and Sale of Fund Shares 1 -0.29% 4.31%
- ----------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes -1.65% 5.72%
- ----------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 3.20% 6.46%
- ----------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 2 (WITH 3.25% SALES CHARGE) 8/1/02
Return Before Taxes 0.43% 5.96%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
WILSHIRE 5000 INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.32% 13.43%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.57% 4.09%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL MODERATELY CONSERVATIVE TARGET NEUTRAL STYLE CLASS INDEX BLEND***
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.33% 9.02%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL MODERATELY CONSERVATIVE TARGET NEUTRAL ASSET CLASS INDEX BLEND****
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 3.55% 7.98%
- ----------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assume a continued
investment in the Fund and show the effect of taxes on Fund distributions.
Returns after taxes on distributions and sales of Fund shares assume all
shares were redeemed at the end of each measurement period, and show the
effect of any taxable gain (or offsetting loss) on redemption, as well as
the effects of taxes on Fund distributions. These after tax returns do not
reflect the effect of any applicable state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ
from those shown. After tax returns are not relevant to investors holding
shares through tax-deferred programs, such as IRA or 401(k) plans.
2 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005.
* The Wilshire 5000 Index is an unmanaged index that measures the
performance of all U.S. headquartered equity securities with readily
available price data. Over 5000 capitalization weighted security returns
are used to adjust the Wilshire 5000.
** The Lehman Brothers Intermediate Government/Credit Bond Index(R) is an
unmanaged index comprised of U.S. Treasuries issues, debt of U.S.
Government agencies, corporate debt guaranteed by the U.S. Government and
all publicly issued, fixed rate, nonconvertible investment-grade, dollar
denominated, SEC-registered corporate debt.
*** See page 34 for a description of the LifeModel Moderately Conservative
Target Neutral Style Class Index Blend.
**** LifeModel Moderately Conservative Target Neutral Asset Class Index Blend
is an unmanaged custom-blended index, created by Fifth Third Asset
Management, Inc., comprised of Wilshire 5000 Index (40%) and 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.
36
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37
ASSET
ALLOCATION
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM STRATEGY
- ---------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE The Fund seeks income and capital appreciation by
investing primarily in a diversified group of Fifth Third Funds which invest
primarily in fixed income and equity securities.
PRINCIPAL INVESTMENT STRATEGIES The Fund is a "fund of funds." The Fund's
investment strategy is to invest in a diversified group of Fifth Third Funds
Institutional shares. Because this is a conservative allocation fund, the
majority of the Fund's assets will be invested in Fifth Third bond funds,
although a portion of its assets will be invested in Fifth Third equity and
money market funds. The Fund's investment return is diversified by its
investment in the underlying mutual funds which invest in debt securities,
growth and value stocks, foreign securities, and cash or cash equivalents.
Under normal circumstances, the Fund is diversified between stocks and bonds,
with a heavy emphasis on bonds:
o From 70% to 90% of the Fund's net assets will be invested in Fifth
Third bond funds.
o From 10% to 30% of the Fund's net assets will be invested in Fifth
Third equity funds.
o Up to 20% of the Fund's net assets will be invested in Fifth Third
money market funds.
The Fund invests its asset in the underlying mutual funds within the following
ranges:
PERCENTAGE OF
FUND NAME FUND HOLDINGS
Small Cap Growth Fund................................................ 0-15%
Mid Cap Growth Fund.................................................. 0-15%
Quality Growth Fund.................................................. 0-15%
Large Cap Core Fund.................................................. 0-15%
Small Cap Value Fund................................................. 0-15%
Multi Cap Value Fund................................................. 0-15%
Disciplined Large Cap Value Fund..................................... 0-15%
International Equity Fund............................................ 0-5%
High Yield Bond Fund................................................. 0-20%
Bond Fund............................................................ 0-60%
Intermediate Bond Fund............................................... 0-60%
Short Term Bond Fund................................................. 0-60%
Institutional Money Market Fund...................................... 0-20%
U.S. Treasury Money Market Fund...................................... 0-20%
The Advisor actively manages the allocations in the portfolio based on current
market and economic conditions. Changes in these conditions often lead to
adjustments in the portfolio's fund weightings.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
Each LifeModel Fund SM has a target neutral index blend, which is listed below.
The target neutral index blend is an index-based baseline style class allocation
determined by the Advisor to be optimal under static market and economic
conditions. THE TARGET NEUTRAL STYLE CLASS INDEX BLEND IS A HYPOTHETICAL BLEND
ONLY AND DOES NOT REPRESENT UNDERLYING ALLOCATIONS IN THE FUND. The Advisor will
periodically adjust the baseline style class allocation.
LIFEMODEL CONSERVATIVE TARGET NEUTRAL STYLE
CLASS INDEX BLEND
Small Cap Growth Index 1 ............................................ 1.3%
Small Cap Value Index 2 ............................................. 1.3%
International Index 3 ............................................... 1.9%
Mid Cap Growth Index 4 .............................................. 2.2%
Mid Cap Value Index 5 ............................................... 2.2%
Large Cap Growth Index 6 ............................................ 4.0%
Large Cap Value Index 7 ............................................. 4.0%
Large Cap Core Index 8............................................... 3.1%
High Yield Bond Index 9 ............................................. 5.0%
Bond Index 10 ....................................................... 15.0%
Intermediate Bond Index 11 .......................................... 40.0%
Short Term Bond Index 12 ............................................ 20.0%
__________________________
1 The Small Cap Growth Index represents the Russell 2000(R) Growth Index.
The Russell 2000(R) Growth Index measures the performance of those
Russell 2000 companies that have higher price-to-book values and higher
forecasted growth rates.
2 The Small Cap Value Index represents the Russell 2000(R) Value Index. The
Russell 2000(R) Value Index measures the performance of those Russell
2000 companies that have lower price-to-book ratios and lower forecasted
growth values.
3 The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE
(R) Index is a widely recognized, unmanaged index composed of a sample of
companies representative of the market structure of 20 European and
Pacific Basin countries.
4 The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index.
The Russell MidCap(R) Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher
forecasted growth values.
5 The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The
Russell MidCap(R) Value Index measures the performance of those Russell
MidCap companies with lower price-to-book ratios and lower forecasted
growth values.
6 The Large Cap Growth Index represents the Russell 1000(R) Growth Index.
The Russell 1000(R) Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values.
7 The Large Cap Value Index represents the Russell 1000(R) Value Index. The
Russell 1000(R) Value Index measures the performance of those Russell
1000 companies with lower price-to-book ratios and lower forecasted growth
values.
8 The Large Cap Core Index represents the Standard & Poor's 500(R) Index.
The Standard & Poor's 500(R) Index is comprised of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
9 The High Yield Bond Index represents the Merrill Lynch High Yield Master
Index. The Merrill Lynch High Yield Master Index 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.
10 The Bond Index represents the Lehman Brothers Aggregate Bond Index. The
Lehman Brothers Aggregate Bond Index is a market value-weighted
performance benchmark for investment-grade fixed-rate debt issues,
including government, corporate, asset-backed and mortgage-backed
securities with maturities of at least one year.
11 The Intermediate Bond Index represents the Lehman Brothers
Government/Credit Intermediate Index. The Lehman Brothers
Government/Credit Intermediate Index is composed of 5,000 publicly-issued
corporate and U.S. Government debt issues rated Baa or better, with at
least one year to maturity and at least $150 million par outstanding.
12 The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government
Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond
Index tracks the trading of short-term U.S. government securities and
short-term domestic investment-grade corporate bonds with maturities
between 1 and 2.99 years.
38
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
For more information about the Fund and its investment strategies, please see
the section "Additional Information About the Funds' Investments."
PRINCIPAL INVESTMENT RISKS The principal risks of investing in the Fund are as
follows:
INVESTMENTS IN MUTUAL FUNDS. The Fund's investments are concentrated in
underlying Fifth Third Funds, so the Fund's investment performance is directly
related to the performance of the underlying funds. The Fund's net asset value
will change with changes in the equity and bond markets and the value of the
mutual funds in which it invests. In addition, the Fund must allocate its
investments among the underlying funds. As a result, the Fund does not have the
same flexibility to invest as a mutual fund without such constraints. In
addition, the Fund indirectly pays a portion of the expenses incurred by the
underlying Funds.
EQUITY FUNDS. Equity funds invest primarily in equity securities (such as
stocks) that are more volatile and carry more risks than some other forms of
investment. The price of equity securities may rise or fall because of economic
or political changes or changes in a company's financial condition. Equity
securities also are subject to "stock market risks," meaning that stock prices
in general may decline over short or extended periods of time. When the value of
the stocks held by an underlying Fifth Third equity fund goes down, the value of
your investment in LifeModel Conservative Fund SM will be affected.
BOND FUNDS. Bond funds invest primarily in fixed income securities. These
securities will increase or decrease in value based on changes in interest
rates. If rates increase, the value of a fund's investments generally declines.
On the other hand, if rates fall, the value of the investments generally
increases. The value of your investment in LifeModel Conservative Fund SM will
change as the value of investments of the underlying Fifth Third Funds increases
and decreases. In addition, the prices of long-term bonds (bonds with a
remaining maturity of at least 10 years) tend to be more volatile than the
prices of bonds with a shorter maturity. Bond funds are subject to credit risk,
which is the risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise become unable to honor a financial
obligation. Credit risk is generally higher for non-investment grade securities.
The price of a security can be adversely affected prior to actual default as its
credit status deteriorates and the probability of default rises.
SMALLER COMPANIES. Investments in smaller, newer companies may be riskier than
investments in larger, more established companies. Small companies may be more
vulnerable to economic, market and industry changes. Because economic events
have a greater impact on smaller companies, there may be greater and more
frequent changes in their stock price. This may cause unexpected and frequent
decreases in the value of the underlying Fund's investment.
FOREIGN SECURITIES. Funds investing in foreign securities are subject to special
risks in addition to those of U.S. investments. These risks include political
and economic risks, currency fluctuations, higher transaction costs, delayed
settlement, and less stringent investor protection and disclosure standards of
some foreign markets. These risks can make foreign investments more volatile and
potentially less liquid than U.S. investments.
EMERGING MARKETS. The risks associated with foreign securities are magnified in
countries in "emerging markets." These countries may have relatively unstable
governments and less established market economies than developed countries.
Emerging markets may face greater social, economic, regulatory, and political
uncertainties. These risks make emerging market securities more volatile and
less liquid than securities issued in more developed countries.
VOLATILITY AND PERFORMANCE INFORMATION. The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
over time, as well as compared to two broad-based securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
10.91% 3.50% 3.00%
------------------------
2003 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 5.75%
Worst quarter: Q2 2004 -1.52%
Year to Date Return (1/1/06 to 9/30/06): 4.16%
- --------------------------------------------------------------------------------
39
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR SINCE INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 8/1/02
Return Before Taxes -2.15% 4.13%
Return After Taxes on Distributions 1 -3.33% 2.95%
Return After Taxes on Distributions and Sale of Fund Shares 1 -1.21% 2.88%
- ----------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes -2.71% 4.17%
- ----------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/1/02
Return Before Taxes 2.18% 4.94%
- ----------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 2 (WITH 3.25% SALES CHARGE) 8/1/02
Return Before Taxes -0.63% 4.43%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
WILSHIRE 5000 INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.32% 13.43%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.57% 4.09%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL CONSERVATIVE TARGET NEUTRAL STYLE CLASS INDEX BLEND***
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 3.11% 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
(SINCE 8/1/02)
LIFEMODEL CONSERVATIVE TARGET NEUTRAL ASSET CLASS INDEX BLEND****
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 2.57% 6.06%
- ----------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assume a continued
investment in the Fund and show the effect of taxes on Fund distributions.
Returns after taxes on distributions and sales of Fund shares assume all
shares were redeemed at the end of each measurement period, and show the
effect of any taxable gain (or offsetting loss) on redemption, as well as
the effects of taxes on Fund distributions. These after tax returns do not
reflect the effect of any applicable state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ
from those shown. After tax returns are not relevant to investors holding
shares through tax-deferred programs, such as IRA or 401(k) plans.
2 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005.
* The Wilshire 5000 Index is an unmanaged index that measures the
performance of all U.S. headquartered equity securities with readily
available price data. Over 5000 capitalization weighted security returns
are used to adjust the Wilshire 5000.
** The Lehman Brothers Intermediate Government/Credit Bond Index(R) is an
unmanaged index comprised of U.S. Treasuries issues, debt of U.S.
Government agencies, corporate debt guaranteed by the U.S. Government and
all publicly issued, fixed rate, nonconvertible investment-grade, dollar
denominated, SEC-registered corporate debt.
*** See page 38 for a description of the LifeModel Conservative Target Neutral
Style Class Index Blend.
**** LifeModel Conservative Target Neutral Asset Class Index Blend is an
unmanaged custom-blended index, created by Fifth Third Asset Management,
Inc., comprised of Wilshire 5000 Index (20%) and 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.
40
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41
STRATEGIC
INCOME
FIFTH THIRD STRATEGIC INCOME FUND STRATEGY
- ----------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High level of income consistent with reasonable risk.
Achieving capital appreciation is a secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in income-producing securities such as debt securities,
common stocks, preferred stocks and common and preferred shares of closed-end
investment companies (also known as "closed-end funds") having portfolios
consisting primarily of income-producing securities. Certain of the debt
securities and preferred stocks in which the Fund invests may be convertible
into common shares. The Fund's investment in stocks may include real estate
investment trusts ("REITs"), which are pooled investment vehicles investing
primarily in income producing real estate or real estate loans or interest.
The Fund will respond to and attempt to anticipate economic and market trends.
The Advisor seeks to provide value by investing in asset classes that are most
attractive based on their risks and in companies with cheap (e.g., attractive
price to cash flow ratio) cash flows in each asset class. The Advisor may invest
in debt securities of any maturity, and will increase its investment in
short-term debt securities during periods when it believes interest rates will
rise and will increase its investment in long-term debt securities during
periods when it believes interest rates will decline. The Advisor seeks to
maximize risk-adjusted returns through fundamental research, quantitative
modeling, and capital structure analysis. In performing this research and
analysis, the Advisor reviews companies based on such factors as sales, assets,
earnings, markets, and management, and the Advisor searches for companies with
favorable debt-to-equity ratios. The Fund seeks returns by investing across a
larger universe than traditional investment grade fixed income funds, and the
Advisor believes that a low correlation between various asset classes leads to
stability of expected returns.
In selecting corporate debt securities for the Fund, the Advisor intends to
invest principally in securities rated BBB or better by Standard & Poor's, but
may invest in securities rated as low as BB, B, CCC or CC or unrated securities
when these investments are believed by the Advisor to be sound and consistent
with an objective of reasonable risk. The Fund will not invest more than 20% of
its portfolio in (i) securities rated BB or lower by Standard & Poor's and/or
(ii) unrated securities which, in the opinion of the Advisor, are of quality
comparable to those rated BB or lower. Securities rated lower than BBB by
Standard & Poor's, sometimes referred to as "junk bonds," are lower-rated
securities and have speculative characteristics.
Investments may be made in any diversified closed-end income fund as long as the
Fund's total portfolio maintains no more than 20% of its assets in securities
rated BB or lower. The Fund may consider closed-end funds as a "pass through"
security, and will look at the composition of the underlying portfolio.
Therefore, the Fund may invest in any single closed-end fund even if the
underlying portfolio contains more than 20% of its assets invested in securities
rated BB or lower. Such closed-end funds may invest in debt securities of United
States or foreign issuers.
The Advisor will look to manage risk through several strategies, which will
typically include: maintaining certain minimum and maximum sector and position
weightings; limiting investment in non-investment grade securities to a maximum
of 20% of the portfolio; and monitoring risk statistics relative to the Lehman
Aggregate Index.
The Advisor may consider selling one of the Fund's holdings when: deterioration
in a company's strategic position, growth prospects, or financial reporting
issues is detected, an individual security comprises too large a position in the
portfolio, a company with declining financial fundamentals has risk volatility
of more than one standard deviation in the Adviser's proprietary credit risk
model a company's valuations are no longer attractive, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the risk that prices of debt securities will rise
and fall in response to interest rate changes for similar securities. Generally,
when interest rates rise, prices of debt securities fall. The net asset value of
the Fund may also decrease during periods of rising interest rates. In addition,
debt securities are subject to CREDIT RISK, which is the risk that an issuer of
debt securities may default (fail to repay interest and principal when due). If
an issuer defaults or the risk of such default is perceived to have increased,
the Fund may lose all or part of its investment. The net asset value of the Fund
may fall during periods of economic downturn when such defaults or risk of
defaults increase.
NON-INVESTMENT GRADE SECURITIES RISK. Securities rated below investment grade,
also known as junk bonds, generally entail greater risks than investment grade
securities. For example, their prices are more volatile, their values are more
negatively impacted by economic downturns, and their trading market may be more
limited.
CLOSED-END INVESTMENT COMPANY RISK. Investments in closed-end funds present
additional risks to investors. Investment by the Fund in closed-end funds
results in a duplication of advisory fees and other expenses, thereby resulting
in a lower return for the Fund than would be the case in the absence of such
duplication. Such investments may be less liquid than other investments and
often trade at a discount. In addition, since these closed-end funds invest in
debt securities, they are subject to the same risks described above.
CURRENCY RISK. Certain of the closed-end funds in which the Fund invests may
invest part or all of their assets in debt securities of foreign issuers.
Because foreign securities ordinarily are denominated in currencies other than
the U.S. dollar, the Fund may be subject to CURRENCY RISK. Changes in foreign
currency exchange rates may affect the closed-end fund's net asset value, the
value of dividends and interest earned, gains and losses realized on the sale of
securities and net investment income and capital gains, if any, to be
distributed to shareholders by the closed-end fund. If the value of a foreign
currency declines against the U.S. dollar, the value of the closed-end fund's
assets denominated in that currency will decrease. Although these closed-end
funds may enter into "hedging" transactions intended to minimize the risk of
loss due to a decline in the value of the subject foreign currency, in some
cases all or a portion of the closed-end fund's portfolio remains subject to
this risk of loss.
42
FIFTH THIRD STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
FOREIGN INVESTMENT RISK. There are additional risks relating to political,
economic, or regulatory conditions in foreign countries; withholding or other
taxes; trading, settlement, custodial, and other operational risks; and the
potentially less stringent investor protection and disclosure standards of
foreign markets. All of these factors can make foreign investments of such
closed-end funds more volatile and potentially less liquid than U.S.
investments.
REIT RISK. The Fund's investments in REITs are subject to the same risks as
direct investments in real estate. Real estate values rise and fall in response
to many factors, including local, regional and national economic conditions, the
demand for rental property, and interest rates. When economic growth is slowing,
demand for property decreases and prices may fall. Rising interest rates, which
drive up mortgage and financing costs, can inhibit construction, purchases, and
sales of property. Property values could decrease because of overbuilding,
extended vacancies, increase in property taxes and operating expenses, zoning
laws, environmental regulations, clean-up of and liability for environmental
hazards, uninsured casualty or condemnation losses, or a general decline in
neighborhood values. The Fund's investment may decline in response to declines
in property values or other adverse changes to the real estate market. In
addition, REITs may have limited financial resources, may trade less frequently
and in limited volume and may be more volatile than other securities.
PRE-PAYMENT/CALL RISK. The prices of mortgage-backed securities also are
affected by changes in interest rates. Although mortgage-backed securities tend
to pay higher interest rates, they also carry additional risk. For instance,
their prices and yields typically assume that the securities will be redeemed at
a given time before maturity. When interest rates fall substantially, they
usually are redeemed early because the underlying mortgages often are prepaid.
The Fund would then have to reinvest the proceeds it receives because of those
redemptions at a lower rate. The price or yield of mortgage-backed securities
also may fall if they are redeemed after that date.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value or periods of lackluster
performance.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1,2
- --------------------------------------------------------------------------------
[BAR CHART]
9.20% 11.47% 3.48% -5.72% 16.01% 12.65% 7.45% 9.83% 6.70% 1.59%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2000 5.99%
Worst quarter: Q4 1999 -4.72%
Year to Date Return (1/1/06 to 9/30/06): 5.22%
- --------------------------------------------------------------------------------
__________________________
1 On October 22, 2001, the Fifth Third/Maxus Income Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into Fifth Third Strategic Income Fund.
2 The performance of Class A shares is based on the performance for Advisor
shares, adjusted to reflect the sale charges for Class A shares, for the
period prior to the commencement of operations of Class A shares on April
1, 2004. For the period prior to October 22, 2001, the quoted performance
reflects the performance of the Investor shares of the Fifth Third/Maxus
Income Fund, adjusted to reflect the sales charges for Class A shares.
43
FIFTH THIRD STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 3/10/85
Return Before Taxes -3.49% 6.49% 6.55%
Return After Taxes on Distributions 3 -4.67% 4.71% 4.13%
Return After Taxes on Distributions and Sale of Fund Shares 3 -1.97% 4.51% 4.09%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 3/10/85
(WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE)
Return Before Taxes -3.94% 6.65% 6.52%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 5 3/10/85
(WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE)
Return Before Taxes 0.94% 6.87% 6.48%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 6 (WITH 3.25% SALES CHARGE) 3/10/85
Return Before Taxes -1.96% 6.77% 6.69%
- -----------------------------------------------------------------------------------------------------------------------------------
LEHMAN (U.S.) AGGREGATE INDEX*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 2.43% 5.87% 6.16%
- -----------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS INTERMEDIATE CREDIT BOND INDEX(R)**
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.42% 6.41% 6.20%
- -----------------------------------------------------------------------------------------------------------------------------------
1 On October 22, 2001, the Fifth Third/Maxus Income Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into Fifth Third Strategic Income Fund.
2 The performance of Class A shares is based on the performance for Advisor
shares, adjusted to reflect the sales charges for Class A shares, for the
period prior to the commencement of operations of Class A shares on April
1, 2004. For the period prior to October 22, 2001, the quoted performance
reflects the performance of the Investor shares of the Fifth Third/Maxus
Income Fund, adjusted to reflect the sales charges for Class A shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B shares is based on the performance for Advisor
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on April 1, 2004. For the period prior to October 22, 2001, the
quoted performance reflects the performance of the Investor shares of the
Fifth Third/Maxus Income Fund, adjusted to reflect the expenses and sales
charges for Class B shares.
5 For the period prior to October 29, 2001, the quoted performance of Class
C shares reflects the performance of the Advisor shares of the Fifth Third
Strategic Income Fund, adjusted to reflect the expenses and sales charges
for Class C shares. For the period prior to October 22, 2001, the quoted
performance reflects the performance of the Investor Shares of the Fifth
Third/Maxus Income Fund, adjusted to reflect the expenses and sales
charges for Class C shares.
6 For the period prior to October 22, 2001, the quoted performance of
Advisor shares reflects the performance of the Investor shares of Fifth
Third/Maxus Income Fund, adjusted to reflect the sales charges for Advisor
shares.
* Effective September 29, 2006 the Fund changed its primary benchmark from
the Lehman Brothers Intermediate Credit Bond Index to the Lehman Aggregate
(U.S.) Index, retaining the Lehman Brothers Intermediate Credit Bond Index
as its secondary benchmark, to better correspond to the Fund's investment
strategy. The Lehman U.S. Aggregate Index covers the U.S.
dollar-denominated, investment-grade, fixed rate, taxable bond market of
SEC-registered securities. The index includes bonds from the Treasury,
government-related, corporate, mortgage-backed securities, asset-backed
securities, and CMBS sectors.
** The Lehman Brothers Intermediate Credit Bond Index(R) is comprised of
publicly issued, fixed rate, non-convertible investment grade
dollar-denominated, SEC-registered corporate debt. Included are debts
issued or guaranteed by foreign sovereign governments, municipalities,
governmental agencies or international agencies.
44
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
45
SPECIALTY
FIFTH THIRD DIVIDEND GROWTH FUND STRATEGY
- ----------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities. The Fund will normally concentrate
its investments in a group of 35 to 65 stocks. The Fund is designed to provide
long-term capital appreciation by investing primarily in high-quality companies
with histories of rising earnings and dividends. The portfolio managers believe
that high-quality companies have the potential to provide an increasing stream
of income to shareholders and protect investment capital in down markets. In
selecting suitable investments, the Advisor will attempt to find companies with
a track record of consistent growth in earnings and dividends. The Advisor will
focus on several key areas in implementing the Fund's investment strategy.
The Advisor will employ quantitative screens to identify high-quality companies
that meet market capitalization targets. The Advisor will evaluate widely-traded
companies with market capitalizations greater than $2 billion - including large
and some mid cap companies. Within this universe of companies, the Advisor will
seek companies that are experiencing consistent earnings and dividend growth by
searching for companies that have reported increased earnings and/or dividends
over the last several reporting periods.
The Advisor will also rank each company based on the quality of earnings and
dividends and the prospect for a continuation of earnings and dividends growth.
The Advisor will employ screening tools that capture quantitative factors such
as earnings and dividend quality rankings, earnings stability, and earnings and
dividend growth - screening that will aid in the identification of attractive
new ideas warranting further consideration.
The Advisor will also conduct an analysis of company fundamentals and historical
valuations. The Advisor will utilize a stock selection approach that is
fundamentally based and focuses on issues related to the quality of management,
product development, reputation, financial progress, business models, and
enterprise risks.
The Fund's disciplined approach will continue once a stock is purchased
and the Advisor will closely monitor risk factors of the portfolio and seek to
control risk by adjusting sector weights and diversifying the portfolio as it
deems appropriate.
The Advisor will also employ a consistent sell strategy. If a stock that was
chosen for the portfolio no longer meets the pre-established parameters, or if
another company is identified to have greater fundamental potential, the stock
may be sold.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
NON-DIVERSIFICATION RISK. The Fund is a non-diversified fund with regard to
issuers of securities. As a result, it does not have to invest in as many
issuers as a diversified fund and, thus, could be significantly affected by the
performance of one or a small number of issuers. Because the Fund is
non-diversified, a single security's increase or decrease in value may have a
greater impact on the Fund's net asset value and total return and the Fund also
could produce lower yields and be subject to higher volatility during some
periods.
EQUITY SECURITIES RISK. Equity securities may be subject to sudden and
unpredictable drops in value or periods of lackluster performance.
GROWTH SECURITIES RISK. Growth stocks are those that have a history of above
average growth or that are expected to enter periods of above average growth.
Growth stocks are sensitive to market movements. The prices of growth stocks
tend to reflect future expectations, and when those expectations are not met,
share prices generally fall.
LARGER COMPANY RISK. Larger, more established companies tend to operate in
mature markets, which often are very competitive. Larger companies also do not
tend to respond quickly to competitive challenges, especially to changes caused
by technology or consumer preferences.
MEDIUM-SIZED COMPANY RISK. Stocks of medium-sized companies can be more
sensitive to long market declines than larger companies, in part because they
generally do not have the financial resources that larger companies have.
DIVIDEND SECURITIES RISK. Stocks that pay regular dividends provide investors
some return of their investment, to an extent, supporting the stock's price,
even during periods when the prices of equity securities generally are falling.
However, dividend-paying stocks, especially those that pay significant
dividends, also tend to appreciate less quickly than stocks of companies in
developing industries, which tend to reinvest most profits into research,
development, plant and equipment to accommodate expansion.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
46
FIFTH THIRD DIVIDEND GROWTH FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their Fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1,2
- --------------------------------------------------------------------------------
[BAR CHART]
22.44% 35.43% 32.83% 11.37% -19.95% -22.00% -29.90% 20.12% 4.28% 4.20%
- -------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 1998 24.87%
Worst quarter: Q1 2001 -18.70%
Year to Date Return (1/1/06 to 9/30/06): 7.37%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 5.00% SALES CHARGE) 3/4/85
Return Before Taxes -1.01% -7.48% 2.90%
Return After Taxes on Distributions 3 -1.01% -7.48% 1.58%
Return After Taxes on Distributions and Sale of Fund Shares 3 -0.66% -6.20% 1.79%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 3/4/85
Return Before Taxes -1.60% -7.72% 2.65%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 5 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 3/4/85
Return Before Taxes 3.44% -7.25% 2.65%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 6 (WITH 3.25% SALES CHARGE) 3/4/85 0.55% -7.37% 2.84%
- -----------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) INDEX* (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.91% 0.54% 9.07%
- -----------------------------------------------------------------------------------------------------------------------------------
RUSSELL 1000(R) INDEX** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 6.27% 1.07% 9.29%
- -----------------------------------------------------------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX*** (REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 5.26% -3.58% 6.73%
- -----------------------------------------------------------------------------------------------------------------------------------
1 Effective August 1, 2005, the investment strategies, policies and risks of
the Fifth Third Select Stock Fund were modified and the fund was renamed
the Fifth Third Dividend Growth Fund.
2 On March 6, 1998, the Pinnacle Fund, a registered open-end investment
company managed by Heartland Capital Management, Inc. was merged into the
Fifth Third Select Stock Fund. For the period prior to March 6, 1998, the
quoted performance of Class A shares reflects the performance of the Class
A shares of The Pinnacle Fund.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
5 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on March 9, 1998.
6 The performance of Advisor shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Advisor
shares, for the period prior to the commencement of operations of Advisor
shares on August 1, 2005.
* The S&P 500(R) Index is an unmanaged 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 Fund changed its benchmark 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 Russell 1000(R) Index is an unmanaged index of common stocks that
measures the performance of the 1,000 largest companies in the Russell
3000(R) Index, and represents approximately 92% of the total market
capitalization of the Russell 3000(R) Index.
*** The Russell Growth Index is an unmanaged index of common stocks that
measures the performance of those Russell 1000(R) companies with higher
price-to-book ratios and higher forecasted growth values.
47
SPECIALTY
FIFTH THIRD TECHNOLOGY FUND STRATEGY
- ----------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in the equity securities of technology companies. The
technology companies in which the Fund typically invests include U.S. and, to a
lesser extent, foreign companies.
Technology companies are those that are substantially engaged in developing
products, processes or services that provide technological advances. Those
companies may be in any of a variety of industries, such as computer hardware,
software, electronic components and systems, telecommunications, Internet, media
and information services, and biotechnology. They also may include companies in
more traditional industries, such as securities brokers and retailers that have
extensively used technological advances to develop new or to improve existing
products or processes.
The Fund generally takes a growth approach to selecting stocks, looking for
established companies that appear poised to grow because of new products,
technology or management, as well as new companies that are in the developmental
stage. Factors in identifying these companies include the quality of management,
financial strength, a strong position relative to competitors and a stock price
that appears reasonable relative to its expected growth rate. The Fund may
invest in companies of any size, including small, high growth companies. The
Fund also may invest in companies whose shares are being, or recently have been,
offered to the public for the first time.
The Advisor may consider selling one of the Fund's holdings when deterioration
in a company's strategic position or growth prospects is detected, an individual
security comprises too large of a position in the portfolio, a company's
valuations are no longer attractive, or a better opportunity arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities include the
risk of sudden and unpredictable drops in value or periods of lackluster
performance.
TECHNOLOGY SECURITIES RISK. The Fund focuses on, and assumes the risks of,
holding technology stocks. For example, technology stocks tend to:
o fluctuate in price more widely and rapidly than the market as a whole;
o underperform other types of stocks or be difficult to sell when the
economy is not robust, during market downturns, or when technology
stocks are out of favor;
o decline in price due to sector specific developments; and
o be more vulnerable than most stocks to the obsolescence of existing
technology, expired patents, short product cycles, price competition,
market saturation and new market entrants.
SMALLER AND MEDIUM-SIZED COMPANY RISK. To the extent that the Fund invests in
mid cap and small cap stocks, it takes on additional risks. For instance, mid
cap and small cap stocks tend to be less liquid and more volatile than large cap
stocks. Smaller companies tend to be unseasoned issuers with new products and
less experienced management.
GROWTH SECURITIES RISK. The prices of most growth stocks are based on future
expectations. As a result, those stocks tend to be more sensitive than value
stocks to negative earnings surprises and changes in internal growth rates.
Growth stocks in particular may underperform during periods when the market
favors value stocks. The Fund's performance may also suffer if certain stocks do
not perform as the portfolio management team expected.
FOREIGN INVESTMENT RISK. Stocks of foreign companies present additional risks
for U.S. investors. Stocks of foreign companies tend to be less liquid and more
volatile than their U.S. counterparts, in part because accounting standards and
market regulations tend to be less standardized and economic and political
climates less stable. Fluctuations in exchange rates also may reduce or
eliminate gains or create losses.
EMERGING MARKETS RISK. The risks associated with foreign investments usually are
higher in emerging markets, such as most countries in Africa, Asia, Latin
America and the Middle East. To the extent that the Fund invests in those kinds
of stocks or in those areas, it will be exposed to the risks associated with
those kinds of investments.
IPO RISK. To the extent the Fund invests in companies whose shares are being, or
recently have been, offered to the public for the first time, the Fund takes on
additional risks, including risks associated with inexperienced management, the
risk that a liquid secondary trading market may not develop and risks of greater
market volatility often associated with the securities sold in initial public
offerings.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
48
FIFTH THIRD TECHNOLOGY FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
-33.45% -42.17% 87.96% -7.16% 7.20%
-------------------------------------------
2001 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q2 2003 41.02%
Worst quarter: Q3 2001 -35.48%
Year to Date Return (1/1/06 to 9/30/06): -0.19%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS SINCE INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 6/5/00
Return Before Taxes 1.83% -7.31% -11.48%
Return After Taxes on Distributions 1 1.83% -7.31% -11.54%
Return After Taxes on Distributions and Sale of Fund Shares 1 1.19% -6.06% -9.32%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 6/5/00
Return Before Taxes 1.50% -7.45% -11.45%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 6/5/00
Return Before Taxes 6.41% -7.08% -11.34%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 3 (WITH 3.25% SALES CHARGE) 6/5/00
Return Before Taxes 3.47% -7.22% -11.43%
- -----------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH 100 TECHNOLOGY INDEX* (REFLECTS NO DEDUCTION FOR FEES, (SINCE 6/1/00)
EXPENSES OR TAXES) 5.87% -5.46% -11.61%
- -----------------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
3 For the period prior to October 29, 2001, the quoted performance of
Advisor shares reflects the performance of Class A shares, adjusted to
reflect the expenses and sales charges for Advisor shares.
* 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 ADRs.
49
SPECIALTY
FIFTH THIRD INTERNATIONAL EQUITY FUND STRATEGY
- ----------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in equity securities and at least 65% of its total
assets in securities of non-U.S. companies. The companies whose securities are
represented in the Fund's portfolio are located in at least three countries
other than the U.S.
The Fund uses a top-down strategy of selecting securities in its portfolio. It
allocates assets among geographic regions and individual countries and sectors,
rather than emphasizing individual stock selection. The Fund capitalizes on the
significance of country and sector selection in international equity portfolio
returns by over and underweighting countries and/or sectors based on three
factors: (i) valuation, (ii) fundamental change, and (iii) market
momentum/technicals. Valuation factors include price/book values and price/cash
earnings. Fundamental change factors include incremental shifts in economic
growth, interest rates, the political, social, business, and regulatory
environment, and monetary and fiscal policy. Market momentum/technical factors
include market capitalization, liquidity, volatility, and investor sentiment.
The Fund's investment subadvisor analyzes both the global economic environment
and the economies of countries throughout the world, focusing mainly on the
industrialized countries comprising the Morgan Stanley Capital International
Europe, Australasia, and Far East Index(R) (the "EAFE Index"). The investment
subadvisor views each country and sector as a unique investment opportunity and
evaluates prospects for value, growth, inflation, interest rates, corporate
earnings, liquidity and risk characteristics, investor sentiment and economic
and currency outlook. The investment subadvisor - on an ongoing basis -
establishes the proportion or weighting for each country and sector (E.G.,
overweight, underweight or neutral) relative to the EAFE Index for investment by
the Fund. The investment subadvisor invests the Fund's assets within each
country and/or sector based on its assigned weighting. Within each country
and/or sector, the investment subadvisor will try to replicate, in the
aggregate, the performance of a broad local market index by investing in
"baskets" of common stocks and other equity securities. Although the Fund
invests primarily in established foreign securities markets, from time to time,
it may also invest in emerging market countries and, with regard to such
investments, may make global and regional allocations to emerging markets, as
well as allocations to specific emerging market countries. The Fund may use
various instruments that derive their values from those of specified securities,
indices, currencies or other points of reference for both hedging and
non-hedging purposes. Derivatives, including those used to manage risk, are
themselves subject to risks of the different markets in which they trade and may
not serve their intended purposes.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
EQUITY SECURITIES RISK. The risks of investing in equity securities, such as,
the risk of sudden and unpredictable drops in value or periods of lackluster
performance.
FOREIGN INVESTMENT RISK. Stocks of foreign companies present additional risks
for U.S. investors. Stocks of foreign companies tend to be less liquid and more
volatile than their U.S. counterparts, in part because accounting standards and
market regulations tend to be less standardized and economic and political
climates less stable. Fluctuations in exchange rates also may reduce or
eliminate gains or create losses.
EMERGING MARKETS RISK. The risks associated with foreign investments usually are
higher in emerging markets, such as most countries in Africa, Asia, Latin
America and the Middle East. To the extent that the Fund invests in those kinds
of stocks or in those areas, it will be exposed to the risks associated with
those kinds of investments.
CURRENCY RISK. The Fund's investments in foreign countries generally will be
denominated in foreign currencies. As a result, changes in the value of a
country's currency compared to the U.S. dollar may affect the value of the
Fund's investments.
DERIVATIVES RISK. The Fund may invest in derivatives, and may use certain
techniques, such as hedging, to manage currency risks as well as to gain
exposure to foreign markets. The primary risks of derivatives are: (1) changes
in the market value of securities, and of derivatives relating to those
securities, may not be proportionate; (2) there may not be a liquid market to
sell a derivative, which could result in difficulty closing a position; and (3)
certain derivatives can magnify the extent of losses incurred due to changes in
market value. In addition, some derivative are subject to counterparty risk.
50
FIFTH THIRD INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
8.54% 7.96% 19.34% 25.74% -14.43% -18.01% -13.96% 33.38% 15.64% 13.66%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q4 1999 17.70%
Worst quarter: Q3 2002 -18.00%
Year to Date Return (1/1/06 to 9/30/06): 11.47%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 5.00% SALES CHARGE) 8/18/94
Return Before Taxes 7.94% 3.29% 5.86%
Return After Taxes on Distributions 1 7.47% 2.99% 4.44%
Return After Taxes on Distributions and Sale of Fund Shares 1 6.10% 2.75% 4.33%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/18/94
Return Before Taxes 7.79% 3.12% 5.54%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 3 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 8/18/94
Return Before Taxes 12.74% 3.46% 5.64%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 8/18/94
Return Before Taxes 9.65% 3.38% 5.79%
- -----------------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 14.02% 4.94% 6.18%
- -----------------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
3 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on April 25, 1996.
4 For the period prior to November 7, 2003, the quoted performance of
Advisor shares reflects the performance for Class A shares, adjusted to
reflect the expenses and sales charges for Advisor shares.
* The Morgan Stanley Capital International EAFE Index(R) is a widely
recognized, unmanaged index composed of a sample of companies
representative of the market structure of 20 European and Pacific Basin
countries.
51
FIXED-
INCOME
FIFTH THIRD HIGH YIELD BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High level of income. Capital appreciation is a secondary
objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in non-investment grade debt securities. The Fund
generally invests in non-investment grade debt securities of domestic
corporations. Non-investment grade securities are rated below investment grade
by the primary rating agencies (e.g., BB or lower by Standard & Poor's and Ba or
lower by Moody's). These securities are often referred to as "junk bonds" and
are considered speculative. The Fund expects to hold securities with an average
maturity of between 6 and 10 years, but the holding period average may vary
between 4 and 12 years.
In selecting portfolio securities, the Fund's Subadvisor analyzes the overall
investment opportunities and risks in different industry sectors focusing on
those industries that exhibit stability and predictability. Having developed
certain industry biases resulting from the current macroeconomic environment,
the Subadvisor implements a process of elimination through which certain types
of securities are removed from the list of initially selected securities due to
their structure. The Subadvisor then conducts a rigorous credit selection
process in order to identify securities that offer attractive investment
opportunities. Once a security has been purchased, the credit analysis process
is re-applied to each individual security in the Fund's portfolio on a periodic
basis or as new information becomes available to determine whether or not to
keep a security in the Fund's portfolio.
When the Subadvisor believes that market conditions warrant a temporary
defensive posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. Generally, the price of a bond
moves in the opposite direction from interest rates. New bonds issued after a
rise in rates offer higher yields to investors. An existing bond with a lower
yield can appear attractive to investors by selling it at a lower price. This
process works in reverse as well; as interest rates fall, the price of a bond
tends to increase. The prices of long term bonds (bonds with a remaining
maturity of at least 10 years) tend to be more volatile than the prices of bonds
with a shorter remaining maturity.
NON-INVESTMENT GRADE SECURITIES RISK. Non-investment grade debt securities are
considered speculative and, compared to investment grade securities, tend to
have:
o more volatile prices and increased price sensitivity to changing
interest rates and to adverse economic and business developments;
o greater risk of loss due to default or declining credit quality;
o greater likelihood that adverse economic or company specific events
will make the issuer unable to make interest and/or principal
payments; and
o greater susceptibility to negative market sentiments leading to
depressed prices and decreased liquidity.
Non-investment grade debt securities present a higher degree of credit risk
because their issuers are often highly leveraged and may not have more
traditional methods of financing available to them. As a result, their ability
to service their debt obligations during an economic downturn or during
sustained periods of rising interest rates may be impaired. The risk of loss due
to default by such issuers is significantly greater than with investment grade
securities because these securities generally are unsecured and subordinated to
the prior payment of senior indebtedness. The Fund also may incur additional
expenses to the extent that it is required to seek recovery upon a default in
the payment of principal or interest on its portfolio holdings.
Under rating agency guidelines, medium- and lower-rated securities and
comparable unrated securities will likely have some quality and protective
characteristics that are outweighed by large uncertainties or major risk
exposures to adverse conditions. Medium- and lower-rated securities may have
poor prospects of ever attaining any real investment standing, may have a
current identifiable vulnerability to default or be in default, may be unlikely
to have the capacity to pay interest and repay principal when due in the event
of adverse business, financial or economic conditions, and/or may be likely to
be in default or not current in the payment of interest or principal. Such
securities are considered speculative with respect to the issuer's capacity to
pay interest and repay principal in accordance with the terms of the
obligations. It is possible that these types of factors could reduce the value
of securities held by the Fund with a commensurate effect on the value of the
Fund's shares.
Changes by the primary rating agencies in their ratings of any fixed-income
security and in the ability of an issuer to make payments of interest and
principal may also affect the value of these investments. The ratings of S&P,
Moody's and other rating agencies generally represent the opinions of those
organizations as to the quality of the securities that they rate. Such ratings,
however, are relative and subjective, are not absolute standards of quality, are
subject to change and do not evaluate the market risk or liquidity of the
securities.
52
FIFTH THIRD HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
LIQUIDITY RISK. In addition, secondary markets for non-investment grade debt
securities are not as liquid as the secondary markets for higher-rated corporate
debt securities. The secondary markets for non-investment grade corporate debt
securities are concentrated in relatively few market makers, and participants in
the market are mostly institutional investors, including insurance companies,
banks, other financial institutions and funds. The trading volume for
non-investment grade corporate debt securities is generally lower than that for
higher-rated corporate debt securities and the secondary markets could contract
under adverse market or economic conditions independent of any specific adverse
changes in the condition of a particular issuer. These factors could have an
adverse effect on the ability of the Fund to dispose of particular portfolio
investments, adversely affect the Fund's net asset value and limit the ability
of the Fund to obtain accurate market quotations for purposes of valuing
securities and calculating net asset value. If the Fund is not able to obtain
precise or accurate market quotations for a particular security, it will become
more difficult to value the Fund's portfolio securities, and a greater degree of
judgment may be necessary in making such valuations. Less liquid secondary
markets also could affect the ability of the Fund to sell securities at their
fair value. If the secondary markets for non-investment grade securities
contract due to adverse economic conditions or for other reasons, certain liquid
securities in the Fund's portfolio may become illiquid and the proportion of the
Fund's assets invested in illiquid securities may significantly increase.
REGULATORY RISK. Prices for non-investment grade debt securities may be affected
by legislative and regulatory developments, which could adversely affect the
Fund's net asset value and investment practices, the secondary market for
non-investment grade securities, the financial condition of issuers of these
securities and the value of outstanding non-investment grade securities.
VOLATILITY AND PERFORMANCE INFORMATION This section would normally include a bar
chart and table showing how the Fund has performed and how performance has
varied from year to year. A bar chart and table will be provided after the Fund
has been in operation for a full calendar year.
53
FIXED-
INCOME
FIFTH THIRD BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High current income. Capital growth is a secondary
objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in bonds. The bonds in which the Fund invests may
include U.S. Government securities and corporate debt securities, including
mortgage-backed securities. Corporate bonds are rated as investment grade.
Investment grade securities are securities rated in the BBB major rating
category or higher by Standard & Poor's, or in the Baa major rating category or
higher by Moody's, or their unrated equivalents.
The Fund tends to be invested in high quality bonds with maturities ranging from
overnight to thirty years in length. The Fund is managed for growth of capital
but with less volatility than a bond fund investing in lower quality securities.
In selecting bond securities, the Advisor considers, among other things, the
remaining maturity, the stated interest rate, the price of the security, the
financial condition of the issuer, and the issuer's prospects for long-term
growth of earnings and revenues.
U.S. Government securities (or bonds) are debt securities issued or guaranteed
as to principal and interest by the U.S. Treasury and obligations issued by U.S.
Government-sponsored enterprises ("GSEs"), which may be agencies or
instrumentalities of the U.S. Government, the securities of which are not
guaranteed as to principal and interest by the U.S. Treasury. U.S. Government
securities that are guaranteed and insured by the full faith and credit of the
U.S. Treasury include U.S. Treasury securities and securities issued by the
Government National Mortgage Association (Ginnie Mae) and the Small Business
Administration (SBA). U.S. Government securities issued by GSEs the securities
of which are neither guaranteed nor insured by the full faith and credit of the
U.S. Treasury but which have the ability to borrow from the Treasury include
Federal Home Loan Bank (FHLB), Student Loan Marketing Association (Sallie-Mae),
Tennessee Valley Authority (TVA), Federal National Mortgage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). Federal Farm
Credit Bank (FFCB) is a GSE that issues securities that are neither guaranteed
nor insured by the full faith and credit of the U.S. Treasury and which has no
ability to borrow from the Treasury. While there are different degrees of credit
quality, all U.S. Government securities and securities issued by GSEs generally
are considered highly credit worthy.
The Fund reserves the right to invest up to 20% of its assets in other
securities, such as high yield securities, foreign bonds, and money market
instruments.
The Advisor may adjust the Fund's sector weightings and duration to attempt to
capture additional returns relative to the Fund's benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in a company's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuations are no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. The prices of long-term bonds
(bonds with a remaining maturity of at least 10 years) tend to be more volatile
than the prices of bonds with a shorter remaining maturity.
Generally, the price of a bond moves in the opposite direction from interest
rates. As interest rates fall, the price of a bond tends to increase. With
respect to GSEs such as FHLB, Sallie-Mae, TVA, Fannie Mae, FFCB and Freddie Mac,
although the issuers may be chartered or sponsored by Acts of Congress, their
securities are neither insured nor guaranteed by the U.S. Treasury and therefore
have more issuer default risk than any direct obligation of the U.S. Treasury.
PRE-PAYMENT/CALL RISK. The prices of mortgage-backed securities also are
affected by changes in interest rates. Although mortgage-backed securities tend
to pay higher interest rates, they also carry additional risk. For instance,
their prices and yields typically assume that the securities will be redeemed at
a given time before maturity. When interest rates fall substantially, they
usually are redeemed early because the underlying mortgages often are prepaid.
The Fund would then have to reinvest the proceeds it receives because of those
redemptions at a lower rate. The price or yield of mortgage-backed securities
also may fall if they are redeemed after that date.
NON-INVESTMENT GRADE SECURITIES RISK. The Fund may invest up to 20% of its
assets in non-investment grade securities. High yield, or non-investment grade,
securities (also known as "junk bonds") are those rated below investment grade
by the primary rating agencies (e.g., below BB/Ba by S&P/Moody's) and are
considered speculative. Compared to investment grade debt securities,
non-investment grade debt securities tend to have more volatile prices and
increased price sensitivity to changing interest rates and adverse economic and
business developments. In addition, compared to investments in investment grade
securities, investments in non-investments grade securities are subject to
greater risk of loss due to default or a decline in credit quality, a greater
likelihood that adverse economic or company-specific events will make the issuer
unable to make interest and/or principal payments, and greater susceptibility to
negative market sentiment, leading to depressed prices and decreased liquidity.
FOREIGN INVESTMENT RISK. In addition, investments in foreign bonds are subject
to special risks in addition to those to which U.S. investments are subject.
These risks include political and economic risks, currency fluctuations, higher
transaction costs, delayed settlement, and less stringent investor protection
and disclosure standards of some foreign markets. These risks can make foreign
investments more volatile and less liquid than U.S. investments.
54
FIFTH THIRD BOND FUND
- --------------------------------------------------------------------------------
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
1.16% 10.19% 9.04% -4.76% 11.65% 6.99% 9.35% 2.85% 3.52% 1.86%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q3 2001 5.29%
Worst quarter: Q1 1996 -3.78%
Year to Date Return (1/1/06 to 9/30/06): 2.53%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 4.75% SALES CHARGE) 3/22/95
Return Before Taxes -3.01% 3.87% 4.56%
Return After Taxes on Distributions 3 -4.43% 2.23% 2.29%
Return After Taxes on Distributions and Sale of Fund Shares 3 -1.92% 2.31% 2.45%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 3/20/95
Return Before Taxes -3.80% 3.70% 4.25%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 3/20/95
Return Before Taxes 1.06% 4.04% 4.25%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 3.25% SALES CHARGE) 3/20/95
Return Before Taxes -1.72% 3.89% 4.44%
- -----------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS AGGREGATE BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 2.43% 5.87% 6.16%
- -----------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Income Fund, a registered open-end
investment company managed by Fifth Third Asset Management, Inc. was
merged into Fifth Third Bond Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Income Fund, adjusted to reflect the sales charges for Class A shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B and Class C shares is based on the performance
for Institutional shares of the Kent Income Fund, adjusted to reflect the
expenses and sales charges for Class B and Class C shares, for the period
prior to the commencement of operations of Class B and Class C shares on
October 29, 2001.
5 For the period prior to October 29, 2001, the quoted performance of
Advisor shares reflects the performance of the Institutional shares of the
Kent Income Fund, adjusted to reflect the expenses and sales charges for
Advisor shares.
* The Lehman Brothers Aggregate Bond Index(R) is an unmanaged total return
index measuring both capital price changes and income index provided by
the underlying universe of securities and is generally representative of
the performance of the bond market as a whole.
55
FIXED-
INCOME
FIFTH THIRD INTERMEDIATE BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High level of current income.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in bonds. The Fund typically invests in the following
types of investment grade bonds: corporate securities, asset-backed securities
mortgage-backed securities, and U.S. Government securities. Investment grade
securities are securities rated in the BBB major rating category or higher by
Standard & Poor's or in the Baa major rating category or higher by Moody's, or
their unrated equivalents. The Fund's dollar-weighted average maturity will
range from more than three years to less than ten years.
U.S. Government securities (or bonds) are debt securities issued or guaranteed
as to principal and interest by the U.S. Treasury and obligations issued by U.S.
Government-sponsored enterprises ("GSEs"), which may be agencies or
instrumentalities of the U.S. Government, the securities of which are not
guaranteed as to principal and interest by the U.S. Treasury. U.S. Government
securities that are guaranteed and insured by the full faith and credit of the
U.S. Treasury include U.S. Treasury securities and securities issued by the
Government National Mortgage Association (Ginnie Mae) and the Small Business
Administration (SBA). U.S. Government securities issued by GSEs the securities
of which are neither guaranteed nor insured by the full faith and credit of the
U.S. Treasury but which have the ability to borrow from the Treasury include
Federal Home Loan Bank (FHLB), Student Loan Marketing Association (Sallie-Mae),
Tennessee Valley Authority (TVA), Federal National Mortgage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). Federal Farm
Credit Bank (FFCB) is a GSE that issues securities that are neither guaranteed
nor insured by the full faith and credit of the U.S. Treasury and which has no
ability to borrow from the Treasury. While there are different degrees of credit
quality, all U.S. Government securities and securities issued by GSEs generally
are considered highly credit worthy.
The Fund strives to manage its portfolio so that it receives a fairly consistent
level of income regardless of fluctuations in interest rates. Additionally, the
Fund may seek some capital appreciation, especially when bond prices are rising,
if the Advisor believes that the Fund can realize such appreciation without
foregoing its objective of high current income.
The Fund reserves the right to invest up to 20% of its assets in other
securities, such as high yield securities, foreign bonds, and money market
instruments.
The Advisor may adjust the Fund's sector weightings and duration to attempt to
capture additional returns relative to the Fund's benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in a company's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuations are no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments and may shorten its
dollar-weighted average maturity below its normal range. The taking of such a
temporary defensive posture may adversely affect the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. The prices of long-term bonds tend
to be more volatile than the prices of bonds with a shorter remaining maturity.
Generally, the price of a bond moves in the opposite direction from interest
rates. As interest rates fall, the price of a bond tends to increase. With
respect to GSEs such as FHLB, Sallie-Mae, TVA, Fannie Mae, FFCB and Freddie Mac,
although the issuers may be chartered or sponsored by Acts of Congress, their
securities are neither insured nor guaranteed by the U.S. Treasury and therefore
have more issuer default risk than any direct obligation of the U.S. Treasury.
PRE-PAYMENT/CALL RISK. The prices of mortgage-backed securities also are
affected by changes in interest rates. Although mortgage-backed securities tend
to pay higher interest rates, they also carry additional risk. For instance,
their prices and yields typically assume that the securities will be redeemed at
a given time before maturity. When interest rates fall substantially, they
usually are redeemed early because the underlying mortgages are often prepaid.
The Fund would then have to reinvest the proceeds it receives because of those
redemptions at a lower rate. The price or yield of mortgage-backed securities
also may fall if they are redeemed after that date.
NON-INVESTMENT GRADE SECURITIES RISK. The Fund may invest up to 20% of its
assets in non-investment grade securities. High yield, or non-investment grade,
securities (also known as "junk bonds") are those rated below investment grade
by the primary rating agencies (e.g., below BB/Ba by S&P/Moody's) and are
considered speculative. Compared to investment grade debt securities,
non-investment grade debt securities tend to have more volatile prices and
increased price sensitivity to changing interest rates and adverse economic and
business developments. In addition, compared to investments in investment grade
securities, investment in non-investment grade securities are subject to greater
risk of loss due to default or a decline in credit quality, a greater likelihood
that adverse economic or company-specific events will make the issuer unable to
make interest and/or principal payments, and greater susceptibility to negative
market sentiment, leading to depressed prices and decreased liquidity.
56
FIFTH THIRD INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
FOREIGN INVESTMENT RISK. In addition, investments in foreign bonds are subject
to special risks in addition to those to which U.S. investments are subject.
These risks include political and economic risks, currency fluctuations, higher
transaction costs, delayed settlement, and less stringent investor protection
and disclosure standards of some foreign markets. These risks can make foreign
investments more volatile and less liquid than U.S. investments.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, C and Advisor Shares will differ from the returns for Class A Shares
(which are shown in the bar chart) because of differences in expenses of each
class. The table assumes that shareholders redeem their fund shares at the end
of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1,2
- --------------------------------------------------------------------------------
[BAR CHART]
2.76% 7.62% 7.26% -1.36% 9.44% 7.94% 8.33% 2.61% 2.18% 1.08%
------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q3 2001 4.65%
Worst quarter: Q2 2004 -2.79%
Year to Date Return (1/1/06 to 9/30/06): 2.98%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 3.50% SALES CHARGE) 11/25/92
Return Before Taxes -2.44% 3.64% 4.35%
Return After Taxes on Distributions 3 -3.83% 2.04% 2.34%
Return After Taxes on Distributions and Sale of Fund Shares 3 -1.59% 2.14% 2.44%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes -3.77% 3.56% 4.07%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes 0.32% 3.61% 3.92%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 2.00% SALES CHARGE) 11/2/92
Return Before Taxes -1.12% 3.74% 4.26%
- -----------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.58% 5.50% 5.80%
- -----------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Intermediate Bond Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into the Fifth Third Intermediate Bond Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Intermediate Bond Fund, adjusted to reflect the sales charges for Class A
shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B and Class C shares is based on the performance
for Institutional shares of the Kent Intermediate Bond Fund, adjusted to
reflect the expenses and sales charges for Class B and Class C shares, for
the period prior to the commencement of operations of Class B and Class C
shares on October 29, 2001.
5 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005. For the period prior to October 29,
2001, the quoted performance of Advisor shares reflects the performance of
Institutional shares of the Kent Intermediate Bond Fund, adjusted to
reflect the expenses and sales charges for Advisor shares.
* The Lehman Brothers Intermediate Government/Credit Bond Index(R) is an
unmanaged index comprised of U.S. Treasuries issues, debt of U.S.
Government agencies, corporate debt guaranteed by the U.S. Government and
all publicly issued, fixed rate, nonconvertible investment-grade, dollar
denominated, SEC-registered corporate debt.
57
FIXED-
INCOME
FIFTH THIRD SHORT TERM BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Current income.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in bonds. The bonds in which the Fund invests typically
include corporate debt securities, mortgage-backed securities, asset-backed
securities, and U.S. Government debt securities.
U.S. Government securities (or bonds) are debt securities issued or guaranteed
as to principal and interest by the U.S. Treasury and obligations issued by U.S.
Government-sponsored enterprises ("GSEs"), which may be agencies or
instrumentalities of the U.S. Government, the securities of which are not
guaranteed as to principal and interest by the U.S. Treasury. U.S. Government
securities that are guaranteed and insured by the full faith and credit of the
U.S. Treasury include U.S. Treasury securities and securities issued by the
Government National Mortgage Association (Ginnie Mae) and the Small Business
Administration (SBA). U.S. Government securities issued by GSEs the securities
of which are neither guaranteed nor insured by the full faith and credit of the
U.S. Treasury but which have the ability to borrow from the Treasury include
Federal Home Loan Bank (FHLB), Student Loan Marketing Association (Sallie-Mae),
Tennessee Valley Authority (TVA), Federal National Mortgage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). Federal Farm
Credit Bank (FFCB) is a GSE that issues securities that are neither guaranteed
nor insured by the full faith and credit of the U.S. Treasury and which has no
ability to borrow from the Treasury. While there are different degrees of credit
quality, all U.S. Government securities and securities issued by GSEs generally
are considered highly credit worthy.
The Fund will maintain a dollar-weighted average portfolio maturity of less than
three years. While maturity and credit quality are the most important investment
factors, the Fund also considers current yield and yield to maturity and
potential for capital gain. The Fund may consider selling a security if it falls
below the minimum credit quality required for purchase.
The Fund reserves the right to invest up to 20% of its assets in other
securities, such as high yield securities, foreign bonds, and money market
instruments.
The Advisor may actively manage the Fund's sector weightings and duration to
attempt to capture excess returns, as related to the Fund benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in a company's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuations are no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments and may shorten its dollar-weighted average maturity below its
normal range. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities, include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. The prices of long-term bonds tend
to be more volatile than the prices of bonds with a shorter remaining maturity.
Generally, the price of a bond moves in the opposite direction from interest
rates. As interest rates fall, the price of a bond tends to increase. With
respect to GSEs such as FHLB, Sallie-Mae, TVA, Fannie Mae, FFCB and Freddie Mac,
although the issuers may be chartered or sponsored by Acts of Congress, their
securities are neither insured nor guaranteed by the U.S. Treasury and therefore
have more issuer default risk than any direct obligation of the U.S. Treasury.
PRE-PAYMENT/CALL RISK. The prices of mortgage-backed securities also are
affected by changes in interest rates. Although mortgage-backed securities tend
to pay higher interest rates, they also carry additional risk. For instance,
their prices and yields typically assume that the securities will be redeemed at
a given time before maturity. When interest rates fall substantially, they
usually are redeemed early because the underlying mortgages are often prepaid.
The Fund would then have to reinvest the proceeds it receives because of those
redemptions at a lower rate. The price or yield of mortgage-backed securities
also may fall if they are redeemed after that date.
LOWER-RATED SECURITIES RISK. Obligations rated in the fourth highest rating
category and below involve greater risks, including price volatility and risk of
default in the payment of interest and principal, than higher-quality
securities.
NON-INVESTMENT GRADE SECURITIES RISK. The Fund may invest up to 20% of its asses
in non-investment grade securities. High yield, or non-investment grade
securities (also known as "junk bonds") are those rated below investment grade
by the primary rating agencies (e.g., below BB/Ba by S&P/Moody's) and are
considered speculative. Compared to investment grade debt securities,
non-investment grade debt securities tend to have more volatile prices and
increased price sensitivity to changing interest rates and adverse economic and
business developments, greater risk of loss due to default or a decline in
credit quality, greater likelihood that adverse economic or company-specific
events will make the issuer unable to make interest and/or principal payments,
and greater susceptibility to negative market sentiment, leading to depressed
prices and decreased liquidity.
FOREIGN INVESTMENT RISK. Investments in foreign bonds are subject to special
risks in addition to those to which U.S. investments are subject. These risks
include political and economic risks, currency fluctuations, higher transaction
costs, delayed settlement, and less stringent investor protection and
58
FIFTH THIRD SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
disclosure standards of some foreign markets. These risks can make foreign
investments more volatile and less liquid than U.S. investments.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The table
assumes that shareholders redeem their fund shares at the end of the period
indicated. The returns of Class C and Advisor Shares will differ from the
returns for Class A Shares (which are shown in the bar chart) because of
differences in expenses of each class.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1,2
- --------------------------------------------------------------------------------
[BAR CHART]
4.06% 6.26% 6.00% 2.35% 7.96% 7.75% 4.70% 1.86% 0.51% 1.40%
-----------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q3 2001 3.15%
Worst quarter: Q2 2004 -1.14%
Year to Date Return (1/1/06 to 9/30/06): 2.84%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 3.50% SALES CHARGE) 12/4/92
Return Before Taxes -2.11% 2.48% 3.89%
Return After Taxes on Distributions 3 -3.27% 1.02% 1.97%
Return After Taxes on Distributions and Sale of Fund Shares 3 -1.38% 1.23% 2.11%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 11/2/92
Return Before Taxes 0.59% 2.36% 3.38%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 2.00% SALES CHARGE) 11/2/92
Return Before Taxes -0.93% 2.45% 3.69%
- -----------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH 1-3 YEAR GOVERNMENT CORPORATE INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.75% 4.06% 5.03%
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRICE INDEX** 3.42% 2.49% 2.52%
- -----------------------------------------------------------------------------------------------------------------------------------
91-DAY TREASURY BILL*** 3.07% 2.11% 3.63%
- -----------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Short Term Bond Fund, a registered open-end
investment company managed by Fifth Third Asset Management, Inc. was
merged into the Fifth Third Short Term Bond Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Short Term Bond Fund, adjusted to reflect the sales charges for Class A
shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class C shares is based on the performance for
Institutional shares, adjusted to reflect the expenses and sales charges
for Class C shares, for the period prior to the commencement of operations
of Class C shares on August 1, 2003.
5 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005. For the period prior to October 29,
2001, the quoted performance of Advisor shares reflects the performance of
the Institutional shares of the Kent Short Term Bond Fund, adjusted to
reflect the expenses and sales charges for Advisor shares.
* The Merrill Lynch 1-3 Year Government Corporate Index(R) is an unmanaged
index trading short-term U.S. Government securities and short-term
domestic investment-grade corporate bonds with maturities between 1 and
2.99 years.
** The Consumer Price Index is an unmanaged index measuring price increases
in a standardized "market basket" of goods.
*** The 91-day Treasury Bill return tracks in the investment return paid on
U.S. Treasury bills maturing in 91 days.
59
FIXED-
INCOME
FIFTH THIRD U.S. GOVERNMENT BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High level of current income. Capital growth is a
secondary objective.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in U.S. Government bonds.
U.S. Government securities (or bonds) are debt securities issued or guaranteed
as to principal and interest by the U.S. Treasury and obligations issued by U.S.
Government-sponsored enterprises ("GSEs"), which may be agencies or
instrumentalities of the U.S. Government, the securities of which are not
guaranteed as to principal and interest by the U.S. Treasury. U.S. Government
securities that are guaranteed and insured by the full faith and credit of the
U.S. Treasury include U.S. Treasury securities and securities issued by the
Government National Mortgage Association (Ginnie Mae) and the Small Business
Administration (SBA). U.S. Government securities issued by GSEs the securities
of which are neither guaranteed nor insured by the full faith and credit of the
U.S. Treasury but which have the ability to borrow from the Treasury include
Federal Home Loan Bank (FHLB), Student Loan Marketing Association (Sallie-Mae),
Tennessee Valley Authority (TVA), Federal National Mortgage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). Federal Farm
Credit Bank (FFCB) is a GSE that issues securities that are neither guaranteed
nor insured by the full faith and credit of the U.S. Treasury and which has no
ability to borrow from the Treasury. While there are different degrees of credit
quality, all U.S. Government securities and securities issued by GSEs generally
are considered highly credit worthy.
In selecting portfolio securities, the Fund generally considers, among other
things, stated interest rates and the price of a security. The Fund attempts to
limit volatility of Fund share prices by managing the average life of the Fund's
investment portfolio. The Fund seeks to maintain a dollar-weighted average
maturity of between two and ten years.
The Fund reserves the right to invest up to 20% of its assets in other
securities, such as money market instruments.
The Advisor may actively manage the Fund's duration to attempt to capture excess
returns, as related to the Fund benchmark. The Advisor may consider selling one
of the Fund's holdings when there is a dramatic shift in interest rates, the
portfolio mix is not considered optimal, or a better opportunity arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality,
short-term debt securities and money market instruments and may shorten its
dollar-weighted average maturity below its normal range. The taking of such a
temporary defensive posture may adversely impact the ability of the Fund to
achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. Generally, the price of a bond
moves in the opposite direction from interest rates. As interest rates fall, the
price of a bond tends to increase. With respect to GSEs such as FHLB,
Sallie-Mae, TVA, Fannie Mae, FFCB and Freddie Mac, although the issuers may be
chartered or sponsored by Acts of Congress, their securities are neither insured
nor guaranteed by the U.S. Treasury and therefore have more issuer default risk
than any direct obligation of the U.S. Treasury.
PRE-PAYMENT/CALL RISK. The prices of mortgage-backed securities also are
affected by changes in interest rates. Although mortgage-backed securities tend
to pay higher interest rates, they also carry additional risk. For instance,
their prices and yields typically assume that the securities will be redeemed at
a given time before maturity. When interest rates fall substantially, they
usually are redeemed early because the underlying mortgages often are prepaid.
The Fund would then have to reinvest the proceeds it receives because of those
redemptions at a lower rate. The price or yield of mortgage-backed securities
also may fall if they are redeemed after that date.
TURNOVER RISK. Through active trading, the Fund may have a high portfolio
turnover rate, which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class C and Advisor Shares will differ from the returns for Class A Shares
(which are shown in the bar chart) because of differences in expenses of each
class. The table assumes that shareholders redeem their fund shares at the end
of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
2.45% 7.14% 7.38% 0.02% 9.15% 7.54% 8.51% 1.25% 1.74% 1.40%
-----------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q3 2001 4.89%
Worst quarter: Q2 2004 -2.31%
Year to Date Return (1/1/06 to 9/30/06): 2.64%
- --------------------------------------------------------------------------------
60
FIFTH THIRD U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 4.75% SALES CHARGE) 1/1/86
Return Before Taxes -3.43% 3.04% 4.09%
Return After Taxes on Distributions 1 -4.52% 1.68% 2.35%
Return After Taxes on Distributions and Sale of Fund Shares 1 -2.19% 1.79% 2.41%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 1/1/86
Return Before Taxes 0.55% 3.22% 3.82%
- -----------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 3 (WITH 3.25% SALES CHARGE) 1/1/86
Return Before Taxes -2.18% 3.09% 4.00%
- -----------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.58% 5.50% 5.80%
- -----------------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on April 24, 1996.
3 The quoted performance of Advisor shares reflects the performance of Class
A shares, adjusted to reflect expenses and sales charges for Advisor
shares, for the period prior to the commencement of operations of Advisor
shares on August 1, 2005.
* The Lehman Brothers Intermediate Government Bond Index(R) is an unmanaged
index generally representative of intermediate-term government bonds.
61
FIXED-
INCOME
FIFTH THIRD MUNICIPAL BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Current income that is exempt from federal income tax.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in municipal bond obligations. Municipal bond
obligations consist of bonds, notes and commercial paper issued by states and
their political subdivisions that pay interest that is exempt from federal
income taxes. The Fund may invest up to 100% of its assets in securities that
may subject you to federal alternative minimum tax. The Fund maintains a
dollar-weighted average portfolio maturity of between five and twenty-five
years. The Fund will purchase securities rated in one of the four highest rating
categories by a Rating Agency or unrated securities of comparable quality (for
example, BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's).
While maturity and credit quality are the most important investment factors, the
Fund also considers current yield and yield to maturity and potential for
capital gain. The Advisor may consider selling a security if it falls below the
minimum credit quality required for purchase.
The Advisor may actively manage the Fund's sector weightings and duration to
attempt to capture excess returns, as related to the Fund benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in an issuer's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuation is no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments and may shorten its dollar-weighted average maturity below its
normal range. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. Generally, the price of a bond
moves in the opposite direction from interest rates. As interest rates fall, the
price of a bond tends to increase. The prices of long-term bonds tend to be more
volatile than the prices of bonds with a shorter remaining maturity.
LOWER-RATED SECURITIES RISK. The Fund can acquire bonds that carry investment
grade credit ratings, which are bonds rated by a Rating Agency in one of the
four highest rating categories. Obligations rated in the fourth highest rating
category involve greater risks, including price volatility and risk of default
in the payment of interest and principal, than higher-quality securities.
POLITICAL RISK. The Fund's performance may be affected by political and economic
factors at the state, regional or national level. Those factors may include
budgetary problems and declining tax bases. Actual or proposed changes in tax
rates also may affect your net return.
LIMITED OBLIGATION SECURITIES RISK. Limited obligation securities are not
general obligations of the issuers. As a result, in the event of a default or
termination, the security holders may have limited recourse.
TAX RISK. Tax risk involves the possibility that the issuer of securities will
fail to comply with certain requirements of the Internal Revenue Code, which
would create adverse tax consequences.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
3.53% 8.32% 5.43% -3.40% 11.97% 3.89% 9.34% 4.47% 2.79% 1.81%
- -------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------------------------
Best quarter: Q3 2002 4.83%
Worst quarter: Q2 2004 -2.63%
Year to Date Return (1/1/06 to 9/30/06): 3.03%
- --------------------------------------------------------------------------------
__________________________
1 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Tax-Free Income Fund. On October 29, 2001, the Kent Tax-Free Income Fund,
a registered open-end investment company managed by Fifth Third Asset
Management, Inc. was merged into Fifth Third Municipal Bond Fund.
62
FIFTH THIRD MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 4.75% SALES CHARGE) 4/1/95
Return Before Taxes -3.05% 3.42% 4.23%
Return After Taxes on Distributions 3 -3.75% 2.86% 3.86%
Return After Taxes on Distributions and Sale of Fund Shares 3 -0.03% 3.32% 4.05%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 3/20/95
Return Before Taxes -3.72% 3.29% 3.94%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 3/20/95
Return Before Taxes 1.02% 3.63% 3.96%
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 3/20/95
Return Before Taxes -1.83% 3.49% 4.15%
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS MUNICIPAL BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 3.51% 5.59% 5.71%
- ------------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Tax-Free Income Fund, a registered open-end
investment company managed by Fifth Third Asset Management, Inc. was
merged into the Fifth Third Municipal Bond Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Tax-Free Income Fund, adjusted to reflect the sales charges for Class A
shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B, Class C and Advisor shares is based on the
performance for Institutional shares of the Kent Tax-Free Income Fund,
adjusted to reflect the expenses and sales charges for Class B, Class C
and Advisor shares, for the period prior to the commencement of operations
of Class B, Class C and Advisor shares on October 29, 2001.
* The Lehman Brothers Municipal Bond Index(R) is an unmanaged index that is
generally representative of the municipal bond market. The index is
comprised of 8,000-investment grade, fixed rate tax exempt securities with
remaining maturities of at least one year.
63
FIXED-
INCOME
FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High level of current income that is exempt from federal
regular income taxes.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in municipal bond obligations. Municipal bond
obligations consist of bonds, notes and commercial paper issued by states and
their political subdivisions that pay interest that is exempt from federal
income taxes. The Fund may invest up to 100% of its assets in securities that
may subject you to federal alternative minimum tax. The Fund maintains a
dollar-weighted average portfolio maturity of between three and ten years. The
Fund will purchase securities rated in one of the four highest rating categories
by a Rating Agency or unrated securities of comparable quality (for example,
BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's).
While maturity and credit quality are the most important investment factors, the
Fund also considers current yield and yield to maturity and potential for
capital gain. The Advisor may consider selling a security if it falls below the
minimum credit quality required for purchase.
The Advisor may actively manage the Fund's sector weightings and duration to
attempt to capture excess returns, as related to the Fund benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in an issuer's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuation is no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments and may shorten its dollar-weighted average maturity below its
normal range. The taking of such a temporary defensive posture may adversely
impact the ability of the Fund to achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities, include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. Generally, the price of a bond
moves in the opposite direction from interest rates. As interest rates fall, the
price of a bond tends to increase. The prices of long-term bonds tend to be more
volatile than the prices of bonds with a shorter remaining maturity.
LOWER-RATED SECURITIES RISK. The Fund can acquire bonds that carry investment
grade credit ratings, which are bonds rated by a Rating Agency in one of the
four highest rating categories. Obligations rated in the fourth highest rating
category involve greater risks, including price volatility and risk of default
in the payment of interest and principal, than higher-quality securities.
POLITICAL RISK. The Fund's performance may be affected by political and economic
factors at the state, regional or national level. Those factors may include
budgetary problems and declining tax bases. Actual or proposed changes in tax
rates also may affect your net return.
LIMITED OBLIGATION SECURITIES RISK. Limited obligation securities are not
general obligations of the issuers. As a result, in the event of a default or
termination, the security holders may have limited recourse.
TAX RISK. Tax risk involves the possibility that the issuer of securities will
fail to comply with certain requirements of the Internal Revenue Code, which
would create adverse tax consequences.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to two broad-based
securities indices.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
3.17% 6.80% 5.09% -1.27% 8.72% 4.47% 7.99% 3.09% 1.81% 0.94%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q2 2002 3.48%
Worst quarter: Q2 2004 -2.08%
Year to Date Return (1/1/06 to 9/30/06): 2.68%
- --------------------------------------------------------------
____________________
1 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Intermediate Tax-Free Fund. On October 29, 2001, the Kent Intermediate
Tax-Free Fund, a registered open-end investment company managed by Fifth
Third Asset Management, Inc. was merged into Fifth Third Intermediate
Municipal Bond Fund.
64
FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 3.50% SALES CHARGE) 12/18/92
Return Before Taxes -2.60% 2.89% 3.67%
Return After Taxes on Distributions 3 -2.85% 2.54% 3.48%
Return After Taxes on Distributions and Sale of Fund Shares 3 -0.44% 2.79% 3.58%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 12/16/92
Return Before Taxes -3.89% 2.80% 3.39%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 12/16/92
Return Before Taxes 0.17% 2.84% 3.24%
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 2.00% SALES CHARGE) 12/16/92
Return Before Taxes -1.26% 2.93% 3.56%
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS QUALITY INTERMEDIATE MUNICIPAL BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.65% 4.78% 5.02%
- ------------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Intermediate Tax-Free Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into the Fifth Third Intermediate Municipal Bond Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Intermediate Tax-Free Fund, adjusted to reflect the sales charges for
Class A shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B and Class C shares is based on the performance
for Institutional shares, adjusted to reflect the expenses and sales
charges for Class B and Class C shares, for the period prior to the
commencement of operations of Class B and Class C shares on October 29,
2001.
5 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales charges for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005. For the period prior to October 29,
2001, the quoted performance of Advisor shares reflects the performance of
the Institutional shares of the Kent Intermediate Tax-Free Fund, adjusted
to reflect the expenses and sales charges for Advisor shares.
* The Lehman Brothers Quality Intermediate Municipal Bond Index(R) is
generally representative of intermediate term municipal bonds with a
maturity between two and twelve years.
65
FIXED-
INCOME
FIFTH THIRD OHIO MUNICIPAL BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Current income exempt from federal income tax and the
personal income taxes imposed by the State of Ohio and Ohio municipalities.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in municipal bond obligations that pay interest that is
exempt from personal income taxes imposed by Ohio and its municipalities. The
securities are generally issued by the State of Ohio, as well as counties,
cities, towns, territories and public authorities in Ohio. These securities pay
interest that is exempt from personal income taxes imposed by Ohio and its
municipalities. Municipal bond obligations consist of bonds, notes and
commercial paper issued by states and their political subdivisions which pay
interest that is exempt from federal income taxes. The Fund may invest up to
100% of its assets in securities that may subject you to federal alternative
minimum tax. The Fund maintains a dollar-weighted average portfolio maturity of
between three and ten years. The Fund will purchase securities rated in one of
the four highest rating categories by a Rating Agency or unrated securities of
comparable quality (for example, BBB- or higher by Standard & Poor's or Baa3 or
higher by Moody's).
While maturity and credit quality are the most important investment factors, the
Fund also considers current yield and yield to maturity and potential for
capital gain. The Advisor may consider selling a security if it falls below the
minimum credit quality required for purchase.
The Advisor may actively manage the Fund's sector weightings and duration to
attempt to capture excess returns, as related to the Fund benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in an issuer's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuation is no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments and may shorten its dollar-weighted average maturity below its
normal range. In addition, during times when the Fund assumes a temporary
defensive posture, the Fund may invest in municipal bonds, the income on which
is exempt from federal income tax but not exempt from Ohio personal income
taxes. The taking of such a temporary defensive posture may adversely impact the
ability of the Fund to achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. Generally, the price of a bond
moves in the opposite direction from interest rates. As interest rates fall, the
price of a bond tends to increase. The prices of long-term bonds tend to be more
volatile than the prices of bonds with a shorter remaining maturity.
NON-DIVERSIFICATION RISK. This Fund is a non-diversified fund with regard to
issuers of securities. As a result, it does not have to invest in as many
issuers as a diversified fund and thus, could be significantly affected by the
performance of one or a small number of issuers and a single security's increase
or decrease in value may have a greater impact on the Fund's net asset value and
total return.
OHIO STATE-SPECIFIC RISK. Because the Fund concentrates its investments in the
securities of issuers in Ohio, certain factors including economic conditions,
constitutional amendments, legislative and executive measures, and voter
initiatives may have a disproportionately negative effect on the Fund's
investments. For example, the Ohio economy relies to a significant degree on
manufacturing. As a result, economic activity in Ohio tends to be cyclical,
which may affect the market value of Ohio municipal securities or the ability of
issuers to make timely payments of interest and principal. Actual or proposed
changes in tax rates also may affect your net return.
LIMITED OBLIGATION SECURITIES RISK. In addition, because revenue bonds and
limited obligation securities are not general obligations of the issuers, the
Fund will have limited recourse in the event of a default or termination of
these securities.
TAX RISK. Tax risk involves the possibility that the issuer of securities will
fail to comply with certain requirements of the Internal Revenue Code, which
would create adverse tax consequences.
66
FIFTH THIRD OHIO MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
3.48% 6.92% 5.50% -3.17% 8.72% 4.23% 7.59% 3.56% 1.84% 0.82%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q3 2002 3.62%
Worst quarter: Q2 1999 -2.34%
Year to Date Return (1/1/06 to 9/30/06): 2.63%
- --------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES (WITH 4.75% SALES CHARGE) 1/1/87
Return Before Taxes -3.98% 2.57% 3.39%
Return After Taxes on Distributions 1 -4.03% 2.53% 3.34%
Return After Taxes on Distributions
and Sale of Fund Shares 1 -1.48% 2.68% 3.40%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 2 (WITH APPLICABLE
CONTINGENT DEFERRED SALES CHARGE) 1/1/87
Return Before Taxes -4.75% 2.37% 2.98%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 3 (WITH APPLICABLE
CONTINGENT DEFERRED SALES CHARGE) 1/1/87
Return Before Taxes 0.09% 2.79% 3.15%
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 4 (WITH 3.25% SALES CHARGE) 1/1/87
Return Before Taxes -2.65% 2.66% 3.30%
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS QUALITY INTERMEDIATE MUNICIPAL BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.65% 4.78% 5.02%
- ------------------------------------------------------------------------------------------------------------------------------------
1 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
2 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
3 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on April 24, 1996.
4 The quoted performance of Advisor shares reflects the performance of Class
A shares, adjusted to reflect expenses and sales charges for Advisor
shares, for the period prior to the commencement of operations of Advisor
shares on August 1, 2005.
* The Lehman Brothers Quality Intermediate Municipal Bond Index(R) is
generally representative of intermediate term municipal bonds with a
maturity between two and twelve years.
67
FIXED-
INCOME
FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND STYLE
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Current income that is exempt from federal income tax and
Michigan personal income tax.
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at
least 80% of its assets in municipal bond obligations that pay interest that is
exempt from personal income taxes imposed by the State of Michigan or its
political subdivisions. The securities are generally issued by the State of
Michigan, as well as counties, cities, towns, territories and public authorities
in Michigan. These securities pay interest that is exempt from personal income
taxes imposed by Michigan and its municipalities. Municipal bond obligations
consist of bonds, notes and commercial paper issued by states and their
political subdivisions that pay interest that is exempt from federal income
taxes. The Fund may invest up to 100% of its assets in securities that may
subject you to federal alternative minimum tax. The Fund maintains a
dollar-weighted average portfolio maturity of between two and five years. No
security in the Fund will have a remaining maturity of more than ten years. The
Fund will purchase securities rated in one of the four highest rating categories
by a Rating Agency or unrated securities of comparable quality (for example BBB-
or higher by Standard & Poor's or Baa3 or higher by Moody's).
While maturity and credit quality are the most important investment factors, the
Fund also considers current yield and yield to maturity and potential for
capital gain. The Advisor may consider selling a security if it falls below the
minimum credit quality required for purchase.
The Advisor may actively manage the Fund's sector weightings and duration to
attempt to capture excess returns, as related to the Fund benchmark.
The Advisor may consider selling one of the Fund's holdings when a deterioration
in an issuer's credit worthiness is detected, an individual security comprises
too large of a position in the portfolio, a security's valuation is no longer
attractive or the intended profit has been realized, or a better opportunity
arises.
When the Advisor believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in money market
instruments and may shorten its dollar-weighted average maturity below its
normal range. In addition, during times when the Fund assumes a temporary
defensive posture, the Fund may invest in municipal bonds, the income on which
is exempt from federal income tax but not exempt from Michigan personal income
taxes. The taking of such a temporary defensive posture may adversely impact the
ability of the Fund to achieve its investment objective.
PRINCIPAL INVESTMENT RISKS Below is a description of the principal risks of
investing in the Fund.
FIXED INCOME SECURITIES RISK. The risks of investing in debt securities, include
INTEREST RATE RISK, which is the tendency of bond prices to fall when interest
rates rise and CREDIT RISK, which is the risk of an issuer defaulting on its
obligations of paying principal and interest. Generally, the price of a bond
moves in the opposite direction from interest rates. As interest rates fall, the
price of a bond tends to increase. The prices of long-term bonds tend to be more
volatile than the prices of bonds with a shorter remaining maturity.
LOWER-RATED SECURITIES RISK. The Fund can acquire bonds that carry investment
grade credit ratings, which are bonds rated by a rating agency in one of the
four highest rating categories. Obligations rated in the fourth highest rating
category involve greater risks, including price volatility and risk of default
in the payment of interest and principal, than higher-quality securities.
MICHIGAN STATE-SPECIFIC RISK. Due to the level of investment in municipal
obligations issued by the State of Michigan and its local political
subdivisions, the performance of the Fund will be closely tied to the economic
and political conditions in the State of Michigan, and, therefore, an investment
in the Fund may be riskier than an investment in other types of bond funds. The
State's economy is principally dependent upon manufacturing (particularly
automobiles, office equipment and other durable goods), tourism and agriculture
and historically has been highly cyclical. The Fund may also be subject to
credit risks of municipal issuers, which may have historically experienced
periods of financial difficulties. When the Fund's assets are invested in
obligations from revenues of similar projects issued by issuers located in the
same state or in industrial development bonds, the Fund will be subject to the
particular risks (including legal and economic conditions) related to such
securities to a greater extent than if its assets were not so invested.
TAX RISK. Tax risk involves the possibility that the issuer of securities will
fail to comply with certain requirements of the Internal Revenue Code, which
would create adverse tax consequences.
68
FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time, as well as compared to a broad-based securities
index.
The returns assume that Fund distributions have been reinvested. The returns for
Class B, Class C and Advisor Shares will differ from the returns for Class A
Shares (which are shown in the bar chart) because of differences in expenses of
each class. The table assumes that shareholders redeem their fund shares at the
end of the period indicated.
Past performance does not indicate how the Fund will perform in the future.
The after tax returns included in the table are only for Class A Shares. After
tax returns for Class B, Class C and Advisor Shares will vary.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1,2
- --------------------------------------------------------------------------------
[BAR CHART]
3.36% 5.38% 4.60% 0.51% 6.05% 5.33% 6.17% 2.20% 0.94% 0.63%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q2 2002 2.73%
Worst quarter: Q2 2004 -1.41%
Year to Date Return (1/1/06 to 9/30/06): 1.98%
- --------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 (WITH 4.75% SALES CHARGE) 5/11/93
Return Before Taxes -4.18% 2.04% 3.00%
Return After Taxes on Distributions 3 -4.18% 1.98% 2.96%
Return After Taxes on Distributions and Sale of Fund Shares 3 -1.84% 2.15% 3.04%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 5/3/93
Return Before Taxes -5.14% 1.76% 2.61%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 4 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 5/3/93
Return Before Taxes -0.26% 2.12% 2.61%
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 5 (WITH 3.25% SALES CHARGE) 5/3/93
Return Before Taxes -2.91% 1.99% 2.80%
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 1-5 YEAR MUNICIPAL BOND INDEX(R)*
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 1.02% 3.85% 4.30%
- ------------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Michigan Municipal Bond Fund, a registered
open-end investment company managed by Fifth Third Asset Management, Inc.
was merged into Fifth Third Michigan Municipal Bond Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Michigan Municipal Bond Fund, adjusted to reflect the sales charges for
Class A shares.
3 After tax returns are calculated using a standard set of assumptions. The
stated returns assume the highest historical federal income and capital
gains tax rules. Returns after taxes on distributions assumes a continued
investment in the Fund and shows the effect of taxes on Fund
distributions. Returns after taxes on distributions and sales of Fund
shares assumes all shares were redeemed at the end of each measurement
period, and shows the effect of any taxable gain (or offsetting loss) on
redemption, as well as the effects of taxes on Fund distributions. These
after tax returns do not reflect the effect of any applicable state and
local taxes. Actual after tax returns depend on an investor's tax
situation and may differ from those shown. After tax returns are not
relevant to investors holding shares through tax-deferred programs, such
as IRA or 401(k) plans.
4 The performance of Class B and Class C shares is based on the performance
for Institutional shares of the Kent Michigan Municipal Bond Fund,
adjusted to reflect the expenses and sales charges for Class B and Class C
shares, for the period prior to the commencement of operations of Class B
and Class C shares on October 29, 2001.
5 The quoted performance of Advisor shares reflects the performance of
Institutional shares, adjusted to reflect expenses and sales changes for
Advisor shares, for the period prior to the commencement of operations of
Advisor shares on August 1, 2005. For the period prior to October 29,
2001, the quoted performance of Advisor shares reflects the performance of
the Institutional shares of the Kent Michigan Municipal Bond Fund,
adjusted to reflect the expenses and sales charges for Advisor shares.
* The Lehman Brothers 1-5 Year Municipal Bond Index(R) is representative of
short term municipal bonds with a maturity between one and six years.
69
MONEY
FIFTH THIRD PRIME MONEY MARKET FUND MARKET
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Current income consistent with stability of principal.
PRINCIPAL INVESTMENT STRATEGIES The Fund manages its portfolio subject to strict
SEC guidelines, which are designed so that the Fund may maintain a stable $1.00
per share price, although there is no guarantee that it will do so. All of the
Fund's investments are expected to mature in the short-term (397 days or less)
and the dollar-weighted average portfolio maturity of the Fund may not exceed 90
days.
The Fund invests at least 95% of its portfolio in high-quality securities called
"first tier" securities or unrated securities that are considered equivalent by
the Fund's Advisor. These generally will be domestic or foreign corporate
securities, including commercial paper that, at the time of purchase, are rated
by such firms as Standard & Poor's and Moody's in their highest short-term major
rating categories, or unrated securities that are considered equivalent by the
Fund's Advisor. They also may include securities issued or guaranteed as to
principal or interest by the U.S. Treasury or any U.S. Government agency or
instrumentality. Additionally, shares of money market investment companies that
invest exclusively in these securities may be used.
The Fund reserves the right to invest up to 5% of its total assets in "second
tier" securities, which generally are corporate securities that, at the time of
purchase, are rated by such firms as Standard & Poor's and Moody's in their
second highest short-term major rating categories, or unrated securities that
are considered equivalent by the Fund's Advisor. Some corporate securities
purchased by the Fund may be restricted securities, that is, they may be subject
to limited resale rights.
The Fund may also invest in asset-backed securities and repurchase agreements
collateralized by the securities mentioned above.
PRINCIPAL INVESTMENT RISKS The Fund's principal risks include interest rate
risk, net asset value risk, credit risk and foreign investment risk.
INTEREST RATE RISK involves the possibility that the Fund's yield will decrease
due to a decrease in interest rates or that the value of the Fund's investments
will decline due to an increase in interest rates.
NET ASSET VALUE RISK involves the possibility that the Fund will be unable to
meet its goal of a constant $1.00 per share.
CREDIT RISK involves the risk that an issuer cannot make timely interest and
principal payments on its debt securities.
FOREIGN INVESTMENT RISK involves the risk associated with higher transaction
costs, delayed settlements, and adverse economic, political or social
developments.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time.
The returns assume that Fund distributions have been reinvested.
Past performance does not indicate how the Fund will perform in the future.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
5.04% 5.21% 5.05% 4.53% 5.80% 3.59% 1.19% 0.49% 0.69% 2.53%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q4 2000 1.51%
Worst quarter: Q4 2003 0.09%
Year to Date Return (1/1/06 to 9/30/06): 3.15%
- --------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 6/14/89 2.53% 1.69% 3.40%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES 1 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 6/14/89 1.76% 1.13% 2.63%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES 2 (WITH APPLICABLE CONTINGENT DEFERRED SALES CHARGE) 6/14/89 1.76% 1.13% 2.63%
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR SHARES 3 6/14/89 2.27% 1.49% 3.09%
- ------------------------------------------------------------------------------------------------------------------------------------
1 The performance of Class B shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class B
shares, for the period prior to the commencement of operations of Class B
shares on October 11, 2000.
2 The performance of Class C shares is based on the performance for Class A
shares, adjusted to reflect the expenses and sales charges for Class C
shares, for the period prior to the commencement of operations of Class C
shares on May 1, 2002.
3 The performance of Advisor shares is based on the performance for Class A
shares, adjusted to reflect the expenses for Advisor shares, for the
period prior to the commencement of operations of Advisor shares on
October 29, 2001.
To obtain current yield information, visit www.53.com or call 1-800-282-5706.
70
MONEY
FIFTH THIRD GOVERNMENT MONEY MARKET FUND MARKET
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE High current income consistent with stability of principal
and liquidity.
PRINCIPAL INVESTMENT STRATEGIES The Fund manages its portfolio subject to strict
SEC guidelines, which are designed so that the Fund may maintain a stable $1.00
per share price, although there is no guarantee that it will do so. All of the
Fund's investments are expected to mature in the short-term (397 days or less),
and the dollar-weighted average portfolio maturity of the Fund may not exceed 90
days.
Under normal circumstances, the Fund invests at least 80% of its assets in U.S.
Government securities, repurchase agreements collateralized by these securities,
and shares of money market investment companies that invest exclusively in these
securities. U.S. Government securities are debt securities issued or guaranteed
as to principal and interest by the U.S. Treasury and obligations issued by U.S.
Government-sponsored enterprises ("GSEs"), which may be agencies or
instrumentalities of the U.S. Government, the securities of which are not
guaranteed as to principal and interest by the U.S. Treasury. U.S. Government
securities that are guaranteed and insured by the full faith and credit of the
U.S. Treasury include U.S. Treasury securities and securities issued by the
Government National Mortgage Association (Ginnie Mae), the Overseas Private
Investment Corporation (OPIC), and the Small Business Administration (SBA). U.S.
Government securities issued by GSEs, the securities of which are neither
guaranteed nor insured by the full faith and credit of the U.S. Treasury but
which have the ability to borrow from the Treasury include Federal Home Loan
Bank (FHLB), Student Loan Marketing Association (Sallie-Mae), Tennessee Valley
Authority (TVA), Federal National Mortgage Association (Fannie Mae), Federal
Home Loan Mortgage Corporation (Freddie Mac) and Federal Agricultural Mortgage
Corporation (Farmer Mac). Federal Farm Credit Bank (FFCB) is a GSE that issues
securities that are neither guaranteed nor insured by the full faith and credit
of the U.S. Treasury and which has no ability to borrow from the Treasury. While
there are different degrees of credit quality, all U.S. Government securities
and securities issued by GSEs generally are considered highly credit worthy.
PRINCIPAL INVESTMENT RISKS The Fund's principal risks include credit risk,
interest rate risk and net asset value risk.
CREDIT RISK involves the risk that an issuer cannot make timely interest and
principal payments on its debt securities. With respect to GSEs such as FHLB,
Sallie-Mae, TVA, Fannie Mae, FFCB and Freddie Mac, although the issuers may be
chartered or sponsored by Acts of Congress, their securities are neither insured
nor guaranteed by the U.S. Treasury and therefore have more credit risk than any
direct obligation of the U.S. Treasury.
INTEREST RATE RISK involves the possibility that the Fund's yield will decrease
due to a decrease in interest rates or that the value of the Fund's investments
will decline due to an increase in interest rates.
NET ASSET VALUE RISK involves the possibility that the Fund will be unable to
meet its goal of a constant $1.00 per share.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time.
The returns assume that Fund distributions have been reinvested.
Past performance does not indicate how the Fund will perform in the future.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES
- --------------------------------------------------------------------------------
[BAR CHART]
4.96% 5.10% 4.92% 4.40% 5.65% 3.47% 1.07% 0.38% 0.57% 2.42%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q4 2000 1.48%
Worst quarter: Q1 2004 0.05%
Year to Date Return (1/1/06 to 9/30/06): 3.09%
- --------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 7/10/91 2.42% 1.57% 3.27%
- ------------------------------------------------------------------------------------------------------------------------------------
To obtain current yield information, visit www.53.com or call 1-800-282-5706.
71
MONEY
FIFTH THIRD MICHIGAN MUNICIPAL MONEY MARKET FUND MARKET
- -------------------------------------------------------------------------
FUNDAMENTAL OBJECTIVE Current income that is exempt from federal income tax and
Michigan personal income tax.
PRINCIPAL INVESTMENT STRATEGIES The Fund, under normal circumstances, invests at
least 80% of its assets in Michigan municipal obligations, which consist of
bonds, notes and commercial paper issued by the State of Michigan and its
political subdivisions that are exempt from federal income taxes. The Fund may
invest up to 100% of its assets in securities that may subject you to federal
alternative minimum tax. The securities will have short-term debt ratings in the
two highest rating categories of at least one Rating Agency or will be unrated
securities of comparable quality.
The Fund manages its portfolio subject to strict SEC guidelines, which are
designed so that the Fund may maintain a stable $1.00 per share price, although
there is no guarantee that it will do so. All of the Fund's investments are
expected to mature in the short-term (397 days or less) and the dollar-weighted
average portfolio maturity of the Fund may not exceed 90 days.
PRINCIPAL INVESTMENT RISKS The principal risks of investing in the Fund include
interest rate risk, net asset value risk, and credit risk.
INTEREST RATE RISK involves the possibility that the Fund's yield will decrease
due to a decrease in interest rates or that the value of the Fund's investments
will decline due to an increase in interest rates.
NET ASSET VALUE RISK involves the possibility that the Fund will be unable to
meet its goal of a constant $1.00 per share.
CREDIT RISK involves the risk that an issuer cannot make timely interest and
principal payments on its debt securities.
MICHIGAN STATE-SPECIFIC RISK. Due to the level of investment in municipal
obligations issued by the State of Michigan and its local governments, the
performance of the Fund will be closely tied to the economic and political
conditions in the State of Michigan, and, therefore, an investment in the Fund
may be riskier than an investment in other types of money market funds. The
State's economy is principally dependent upon manufacturing (particularly
automobiles, office equipment and other durable goods), tourism and agriculture
and historically has been highly cyclical. The Fund may also be subject to
credit risks of municipal issuers, which may have historically experienced
periods of financial difficulties. When a Fund's assets are concentrated in
obligations from revenues of similar projects issued by issuers located in the
same state or in industrial development bonds, the Fund will be subject to the
particular risks (including legal and economic conditions) related to such
securities to a greater extent than if its assets were not so concentrated.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time.
The returns assume that Fund distributions have been reinvested.
Past performance does not indicate how the Fund will perform in the future.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
3.11% 3.31% 3.06% 2.86% 3.70% 2.22% 1.02% 0.57% 0.67% 1.81%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q2 2000 0.96%
Worst quarter: Q3 2003 0.10%
Year to Date Return (1/1/06 to 9/30/06): 2.08%
- --------------------------------------------------------------
____________________
1 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Michigan Municipal Money Market Fund. On October 29, 2001, the Kent
Michigan Municipal Money Market Fund, a registered open-end investment
company managed by Fifth Third Asset Management, Inc., was merged into
Fifth Third Michigan Municipal Money Market Fund.
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AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 12/15/92 1.81% 1.25% 2.22%
- ------------------------------------------------------------------------------------------------------------------------------------
1 On October 29, 2001, the Kent Michigan Municipal Money Market Fund, a
registered open-end investment company managed by Fifth Third Asset
Management, Inc., was merged into the Fifth Third Michigan Municipal Money
Market Fund.
2 For the period prior to October 29, 2001, the quoted performance of Class
A shares reflects the performance of the Investment shares of the Kent
Michigan Municipal Money Market Fund.
To obtain current yield information, visit www.53.com or call 1-800-282-5706.
72
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
73
MONEY
FIFTH THIRD MUNICIPAL MONEY MARKET FUND MARKET
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FUNDAMENTAL OBJECTIVE Maximize current income, exempt from federal income tax,
while preserving capital and maintaining liquidity.
PRINCIPAL INVESTMENT STRATEGIES The Fund manages its portfolio subject to strict
SEC guidelines, which are designed so that the Fund may maintain a stable $1.00
per share price, although there is no guarantee that it will do so. All of the
Fund's investments are expected to mature in the short-term (397 days or less)
and the dollar-weighted average portfolio maturity of the Fund may not exceed 90
days.
The Fund invests at least 95% of its portfolio in high-quality securities called
"first tier" securities, which generally are securities that, at the time of
purchase, are rated by such firms as Standard & Poor's and Moody's in their
highest short-term major rating categories, or unrated securities that are
considered equivalent by the Fund's Advisor.
Under normal circumstances, at least 80% of its assets are invested in municipal
securities. These include fixed and variable rate debt obligations issued by
various states, their counties, towns and public authorities. These securities
tend to be:
o general obligation bonds, the principal and interest of which are paid
from general tax revenues received by the issuer;
o revenue bonds, the principal and interest of which are paid only from
the revenues received from one or more public projects or special
excise taxes. These bonds tend to be issued in connection with the
financing of infrastructure projects, such as toll roads and housing
projects, and they are not general obligations of the issuer;
o industrial development bonds, the principal and interest of which are
paid only from revenues received from privately-operated facilities.
Generally, these bonds are issued in the name of a public finance
authority to finance infrastructure to be used by a private entity.
However, they are general obligations of the private entity, not the
issuer.
The Fund may invest up to 100% of its assets in securities that may subject you
to federal alternative minimum tax. The Fund reserves the right to invest up to
5% of its total assets in "second tier" securities, which generally are
securities that, at the time of purchase, are rated by such firms as Standard &
Poor's and Moody's in their second highest short-term major rating categories,
or unrated securities that are considered equivalent by the Fund's Advisor. Some
securities purchased by the Fund may be restricted securities, that is, they may
be subject to limited resale rights.
The Fund may also invest in asset-backed securities and repurchase agreements
collateralized by U.S. Treasury securities.
PRINCIPAL INVESTMENT RISKS The Fund's principal risks include interest rate
risk, net asset value risk, credit risk, and tax risk.
INTEREST RATE RISK involves the possibility that the Fund's yield will decrease
due to a decrease in interest rates or that the value of the Fund's investments
will decline due to an increase in interest rates.
NET ASSET VALUE RISK involves the possibility that the Fund will be unable to
meet its goal of a constant $1.00 per share.
CREDIT RISK involves the risk that an issuer cannot make timely interest and
principal payments on its debt securities.
TAX RISK involves the possibility that the issuer of securities will fail to
comply with certain requirements of the Internal Revenue Code, which would
create adverse tax consequences.
VOLATILITY AND PERFORMANCE INFORMATION The bar chart and table provide an
indication of the risks of an investment in the Fund by showing its performance
from year to year and over time.
The returns assume that Fund distributions have been reinvested.
Past performance does not indicate how the Fund will perform in the future.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR CLASS A SHARES 1
- --------------------------------------------------------------------------------
[BAR CHART]
2.72% 2.75% 2.68% 2.79% 3.81% 2.42% 1.06% 0.58% 0.61% 1.84%
- --------------------------------------------------------------------------------
1996 97 98 99 00 01 02 03 04 05
The bar chart above does not reflect the impact of any applicable sales charges
or account fees, which would reduce returns.
- --------------------------------------------------------------
Best quarter: Q4 2000 1.01%
Worst quarter: Q3 2003 0.09%
Year to Date Return (1/1/06 to 9/30/06): 2.24%
- --------------------------------------------------------------
____________________
1 For the period prior to September 21, 1998, the quoted performance of
Class A shares reflects the performance of the Investor shares of the
Cardinal Tax Exempt Money Market Fund. On September 21, 1998, the Cardinal
Tax Exempt Money Market Fund, a registered open-end investment company
managed by The Ohio Company, was consolidated into Fifth Third Municipal
Money Market Fund.
74
FIFTH THIRD MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2005) 1
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE PAST YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES 2 9/7/83 1.84% 1.30% 2.12%
- ------------------------------------------------------------------------------------------------------------------------------------
1 On September 21, 1998, the Cardinal Tax Exempt Money Market Fund, a
registered open-end investment company managed by The Ohio Company was
consolidated with the Fifth Third Municipal Money Market Fund.
2 For the period prior to September 21, 1998, the quoted performance of
Class A shares reflects the performance of the Investor shares of the
Cardinal Tax Exempt Money Market Fund.
To obtain current yield information, visit www.53.com or call 1-800-282-5706.
75
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
THESE TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
SHARES OF THE FUNDS.
Shareholder fees are paid by you at the time you purchase or sell your shares.
Annual Fund Operating Expenses are paid out of Fund assets, and are reflected in
the share price. Each Fund's fees and expenses are based upon the Fund's
operating expenses for the fiscal year ended July 31, 2006 or estimated amounts
for the current fiscal year.
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- ------------------------------------------------------------------------
FIFTH THIRD SMALL
CAP GROWTH FUND
- ------------------------------------------------------------------------
CLASS NAME A B C ADVISOR
- ------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED
ON PURCHASES 5.00% 1,2 None None 3.25% 1
- ------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None
- ------------------------------------------------------------------------
MAXIMUM DEFERRED
SALES LOAD None 5.00% 3 1.00% 4 None
- ------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- ------------------------------------------------------------------------
MANAGEMENT FEES 0.70% 0.70% 0.70% 0.70%
- ------------------------------------------------------------------------
DISTRIBUTION/SERVICE
(12B-1) FEES 0.25% 1.00% 0.75% 0.50%
- ------------------------------------------------------------------------
OTHER EXPENSES 0.33% 0.33% 0.58% 0.33%
- ------------------------------------------------------------------------
TOTAL ANNUAL FUND
OPERATING EXPENSES 1.28% 2.03% 2.03% 1.53%
- ------------------------------------------------------------------------
FEE WAIVER AND/OR
EXPENSE REIMBURSEMENT 5 -- -- -- --
- ------------------------------------------------------------------------
NET EXPENSES -- -- -- --
- ------------------------------------------------------------------------
EQUITY FUNDS (GROWTH STYLE)--FEE TABLE
- -----------------------------------------------------------------------------------------------------
FIFTH THIRD MID FIFTH THIRD
CAP GROWTH FUND QUALITY GROWTH FUND
- -----------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- -----------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED
ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- -----------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- -----------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED
SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- -----------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- -----------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80%
- -----------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE
(12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- -----------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.28% 0.28% 0.53% 0.28% 0.28% 0.28% 0.53% 0.28%
- -----------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND
OPERATING EXPENSES 1.33% 2.08% 2.08% 1.58% 1.33% 2.08% 2.08% 1.58%
- -----------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR
EXPENSE REIMBURSEMENT 5 -- -- -- -- 0.01% 0.01% 0.01% 0.01%
- -----------------------------------------------------------------------------------------------------
NET EXPENSES -- -- -- -- 1.32% 2.07% 2.07% 1.57%
- -----------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Fund's Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007 to limit total
annual fund operating expenses for the Quality Growth Fund to: 1.32% for
Class A shares, 2.07% for Class B shares, 2.07% for Class C shares, and
1.57% for Advisor shares. Under the terms of the expense limitation
agreement, fees waived or expenses reimbursed by the Advisor and
Administrator are subject to reimbursement by the Quality Growth Fund for
the 13 month period in which the expense limitation agreement is in
effect. No reimbursement payment will be made by the Fund if it would
result in the Fund exceeding the expense limitation described herein.
76
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- ------------------------------------------------------------------------
FIFTH THIRD LARGE
CAP CORE FUND
- ------------------------------------------------------------------------
CLASS NAME A B C ADVISOR
- ------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED
ON PURCHASES 5.00% 1,2 None None 3.25% 1
- ------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None
- ------------------------------------------------------------------------
MAXIMUM DEFERRED
SALES LOAD None 5.00% 3 1.00% 4 None
- ------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- ------------------------------------------------------------------------
MANAGEMENT FEES 0.70% 0.70% 0.70% 0.70%
- ------------------------------------------------------------------------
DISTRIBUTION/SERVICE
(12B-1) FEES 0.25% 1.00% 0.75% 0.50%
- ------------------------------------------------------------------------
OTHER EXPENSES 0.33% 0.33% 0.58% 0.33%
- ------------------------------------------------------------------------
TOTAL ANNUAL FUND
OPERATING EXPENSES 1.28% 2.03% 2.03% 1.53%
- ------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE
REIMBURSEMENT 5 0.11% 0.11% 0.11% 0.11%
- ------------------------------------------------------------------------
NET EXPENSES 1.17% 1.92% 1.92% 1.42%
- ------------------------------------------------------------------------
EQUITY FUNDS (CORE STYLE)--FEE TABLE
- -----------------------------------------------------------------------------------------------------
FIFTH THIRD FIFTH THIRD
EQUITY INDEX FUND BALANCED FUND
- -----------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- -----------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED
ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- -----------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- -----------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED
SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- -----------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- -----------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.30% 0.30% 0.30% 0.30% 0.80% 0.80% 0.80% 0.80%
- -----------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE
(12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- -----------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.30% 0.30% 0.55% 0.30% 0.42% 0.42% 0.67% 0.42%
- -----------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND
OPERATING EXPENSES 0.85% 1.60% 1.60% 1.10% 1.47% 6 2.22% 6 2.22% 6 1.72% 6
- -----------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE
REIMBURSEMENT 5 0.41% 0.41% 0.41% 0.41% -- -- -- --
- -----------------------------------------------------------------------------------------------------
NET EXPENSES 0.44% 1.19% 1.19% 0.69% -- -- -- --
- -----------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Funds' Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007 to limit total
annual fund operating expenses for the Large Cap Core Fund to: 1.17% for
Class A shares, 1.92% for Class B shares, 1.92% for Class C shares and
1.42% for Advisor shares and for the Equity Index Fund to: 0.44% for Class
A shares, 1.19% for Class B shares, 1.19% for Class C shares and 0.69% for
Advisor shares. Under the terms of the expense limitation agreement, fees
waived or expenses reimbursed by the Advisor and Administrator are subject
to reimbursement by the Large Cap Core Fund and the Equity Index Fund for
the 13 month period in which the expense limitation agreement is in
effect. No reimbursement payment will be made by the Fund if it would
result in the Fund exceeding the expense limitation described herein.
6 The Fund's Advisor and Administrator have voluntarily agreed to waive fees
and/or reimburse expenses to limit total annual fund operating expenses
for the Balanced Fund to: 1.21% for Class A shares, 1.96% for Class B
shares, 1.96% for Class C shares and 1.46% for Advisor shares. These
waivers and/or expense reimbursements may be discontinued at any time.
77
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) EQUITY FUNDS (VALUE STYLE)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD MICRO FIFTH THIRD SMALL
CAP VALUE FUND CAP VALUE FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 1.00% 1.00% 1.00% 1.00% 0.90% 0.90% 0.90% 0.90%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.40% 0.40% 0.65% 0.40% 0.34% 0.34% 0.59% 0.34%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.65% 2.40% 2.40% 1.90% 1.49% 2.24% 2.24% 1.74%
- --------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) EQUITY FUNDS (VALUE STYLE)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD MULTI FIFTH THIRD DISCIPLINED
CAP VALUE FUND LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 1.00% 1.00% 1.00% 1.00% 0.80% 0.80% 0.80% 0.80%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.31% 0.31% 0.56% 0.31% 0.27% 0.27% 0.52% 0.27%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.56% 2.31% 2.31% 1.81% 1.32% 2.07% 2.07% 1.57%
- --------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 5 0.12% 0.12% 0.12% 0.12% 0.06% 0.06% 0.06% 0.06%
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 1.44% 2.19% 2.19% 1.69% 1.26% 2.01% 2.01% 1.51%
- --------------------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Funds' Advisor and Administrator have contractually agreed to waive
and/or reimburse expenses through November 28, 2007, to limit total annual
fund operating expenses for the Multi Cap Value Fund to: 1.44% for Class A
shares, 2.19% for Class B shares, 2.19% for Class C shares and 1.69% for
Advisor shares; and for the Disciplined Large Cap Value Fund to: 1.26% for
Class A shares, 2.01% for Class B shares, 2.01% for Class C shares, and
1.51% for Advisor shares. Under the terms of the expense limitation
agreement, fees waived or expenses reimbursed by the Advisor and
Administrator are subject to reimbursement by the Funds for the 13 month
period in which the expense limitation agreement is in effect. No
reimbursement payment will be made by the Funds if it would result in the
Funds exceeding the expense limitation described herein.
78
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) ASSET ALLOCATION STRATEGY--FEE TABLE
- ---------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL FIFTH THIRD LIFEMODEL FIFTH THIRD LIFEMODEL
AGGRESSIVE FUND SM MODERATELY AGGRESSIVE FUND SM MODERATE FUND SM
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR A B C ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED
ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- ---------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE
(LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None None None None None
- ---------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED
SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- ---------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- ---------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15%
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE
(12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.33% 0.33% 0.58% 0.33% 0.30% 0.30% 0.55% 0.30% 0.28% 0.28% 0.53% 0.28%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND
OPERATING EXPENSES 0.73% 1.48% 1.48% 0.98% 0.70% 1.45% 1.45% 0.95% 0.68% 1.43% 1.43% 0.93%
- ---------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE
REIMBURSEMENT 5 0.40% 0.40% 0.40% 0.40% 0.37% 0.37% 0.37% 0.37% 0.35% 0.35% 0.35% 0.35%
- ---------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 6 0.33% 1.08% 1.08% 0.58% 0.33% 1.08% 1.08% 0.58% 0.33% 1.08% 1.08% 0.58%
- ---------------------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Funds' Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007, to limit total
annual fund operating expenses for the LifeModel Aggressive Fund SM, the
LifeModel Moderately Aggressive Fund SM and the LifeModel Moderate Fund SM
to: 0.33% for Class A shares, 1.08% for Class B shares, 1.08% for Class C
shares and 0.58% for Advisor shares. Under the terms of the expense
limitation agreement, fees waived or expenses reimbursed by the Advisor
and Administrator are subject to reimbursement by the Funds for the 13
month period in which the expense limitation agreement is in effect. No
reimbursement payment will be made by the Funds if it would result in the
Funds exceeding the expense limitation described herein.
6 In addition to the operating expenses disclosed above, each Fund
indirectly pays a portion of the expenses incurred by the underlying
funds. The estimated average weighted expense ratios for the underlying
funds of the LifeModel Aggressive Fund SM are 1.03% for Class A, Class B,
Class C and Advisor shares; of the LifeModel Moderately Aggressive Fund SM
are 0.99% for Class A, Class B, Class C and Advisor shares; and of the
LifeModel Moderate Fund SM are 0.95% for Class A, Class B, Class C and
Advisor shares.
79
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) ASSET ALLOCATION STRATEGY--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL FIFTH THIRD LIFEMODEL
MODERATELY CONSERVATIVE FUND SM CONSERVATIVE FUND SM
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.35% 0.35% 0.60% 0.35% 0.43% 0.43% 0.68% 0.43%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 0.75% 1.50% 1.50% 1.00% 0.83% 1.58% 1.58% 1.08%
- --------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 5 0.42% 0.42% 0.42% 0.42% 0.50% 0.50% 0.50% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 6 0.33% 1.08% 1.08% 0.58% 0.33% 1.08% 1.08% 0.58%
- --------------------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Funds' Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007, to limit total
annual fund operating expenses for the LifeModel Moderately Conservative
Fund SM and the LifeModel Conservative Fund SM to: 0.33% for Class A
shares, 1.08% for Class B shares, 1.08% for Class C shares and 0.58% for
Advisor shares. Under the terms of the expense limitation agreement, fees
waived or expenses reimbursed by the Advisor and Administrator are subject
to reimbursement by the Funds for the 13 month period in which the expense
limitation agreement is in effect. No reimbursement payment will be made
by the Funds if it would result in the Funds exceeding the expense
limitation described herein.
6 In addition to the operating expenses disclosed above, each Fund
indirectly pays a portion of the expenses incurred by the underlying
funds. The estimated average weighted expense ratios for the underlying
funds of the LifeModel Moderately Conservative Fund SM are 0.90% for Class
A, Class B, Class C and Advisor shares and of the LifeModel Conservative
Fund SM are 0.86% for Class A, Class B, Class C and Advisor shares.
80
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) STRATEGIC INCOME STRATEGY--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------
FIFTH THIRD STRATEGIC
INCOME FUND
- --------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 5.00% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON REINVESTED DIVIDENDS None None None None
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 1.00% 1.00% 1.00% 1.00%
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.34% 0.34% 0.59% 0.34%
- --------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.59% 2.34% 2.34% 1.84%
- --------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 5 0.38% 0.38% 0.38% 0.38%
- --------------------------------------------------------------------------------------------------------------------
NET EXPENSES 1.21% 1.96% 1.96% 1.46%
- --------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Funds' Advisor and Administrator have contractually agreed to waive
and/or reimburse expenses through November 28, 2007, to limit total annual
fund operating expenses for the Strategic Income Fund to: 1.21% for Class
A shares, 1.96% for Class B shares, 1.96% for Class C shares, and 1.46%
for Advisor shares. Under the terms of the expense limitation agreement,
fees waived or expenses reimbursed by the Advisor and Administrator are
subject to reimbursement by the Funds for the 13 month period in which the
expense limitation agreement is in effect. No reimbursement payment will
be made by the Funds if it would result in the Funds exceeding the expense
limitation described herein.
81
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) SPECIALTY STRATEGY--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD FIFTH THIRD
DIVIDEND GROWTH FUND TECHNOLOGY FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 5.00% 1,2 None None 3.25% 1 5.00% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.80% 0.80% 0.80% 0.80% 1.00% 1.00% 1.00% 1.00%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 1.92% 1.92% 2.17% 1.92% 0.51% 0.51% 0.76% 0.51%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 2.97% 3.72% 3.72% 3.22% 1.76% 2.51% 2.51% 2.01%
- --------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 5 1.99% 1.99% 1.99% 1.99% -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 0.98% 1.73% 1.73% 1.23% -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) SPECIALTY STRATEGY--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------
FIFTH THIRD
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 5.00% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 1.00% 1.00% 1.00% 1.00%
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.37% 0.37% 0.62% 0.37%
- --------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.62% 2.37% 2.37% 1.87%
- --------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 6 0.02% 0.02% 0.02% 0.02%
- --------------------------------------------------------------------------------------------------------------------
NET EXPENSES 1.60% 2.35% 2.35% 1.85%
- --------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Fund's Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses to limit total annual fund operating
expenses for the Dividend Growth Fund to: 0.98% for Class A shares, 1.73%
for Class B shares, 1.73% for Class C shares and 1.23% for Advisor Shares.
These waivers and/or expense reimbursements will remain in effect until
November 28, 2008. Under the terms of the expense limitation agreement,
fees waived or expenses reimbursed by the Advisor and Administrator are
subject to reimbursement by the Dividend Growth Fund for the 40 month
period in which the expense limitation agreement is in effect. No
reimbursement payment will be made by the Fund if it would result in the
Fund exceeding the expense limitation described herein.
6 The Fund's Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007 to limit total
annual fund operating expenses for the International Equity Fund to: 1.60%
for Class A shares, 2.35% for Class B shares, 2.35% for Class C shares and
1.85% for Advisor shares. Under the terms of the expense limitation
agreement, fees waived or expenses reimbursed by the Advisor and
Administrator are subject to reimbursement by the International Equity
Fund for the 13 month period in which the expense limitation agreement is
in effect. No reimbursement payment will be made by the Fund if it would
result in the Fund exceeding the expense limitation described herein.
82
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) FIXED INCOME FUNDS (TAXABLE)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD HIGH YIELD FIFTH THIRD
BOND FUND BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 4.75% 1,2 None None 3.25% 1 4.75% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED
SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.70% 0.70% 0.70% 0.70% 0.60% 0.60% 0.60% 0.60%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.45% 0.45% 0.70% 0.45% 0.30% 0.30% 0.55% 0.30%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.40% 2.15% 2.15% 1.65% 1.15% 6 1.90% 6 1.90% 6 1.40% 6
- --------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 5 0.41% 0.41% 0.41% 0.41% -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 0.99% 1.74% 1.74% 1.24% -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) FIXED INCOME FUNDS (TAXABLE)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------
FIFTH THIRD
INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 3.50% 1,2 None None 2.00% 1
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON REINVESTED DIVIDENDS None None None None
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.55% 0.55% 0.55% 0.55%
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.28% 0.28% 0.53% 0.28%
- --------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.08% 6 1.83% 6,7 1.83% 6 1.33% 6
- --------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Funds' Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007 to limit total
annual fund operating expenses for the High Yield Bond Fund to: 0.99% for
Class A shares, 1.74% for Class B shares, 1.74% for Class C shares and
1.24% for Advisor shares. Under the terms of the expense limitation
agreement, fees waived or expenses reimbursed by the Advisor and
Administrator are subject to reimbursement by the Fund for the 13 month
period in which the expense limitation agreement is in effect. No
reimbursement payment will be made by the Fund if it would result in the
Fund exceeding the expense limitation described herein.
6 The Fund's Advisor and Administrator have voluntarily agreed to waive fees
and/or reimburse expenses to limit total annual fund operating expenses
for the Bond Fund to: 0.97% for Class A shares, 1.72% for Class B
shares,1.72% for Class C shares and 1.22% for Advisor shares; and for the
Intermediate Bond Fund to: 0.95% for Class A shares, 1.70% for Class B
shares, 1.70% for Class C shares and 1.20% for Advisor shares. These
waivers and/or expense reimbursements may be discontinued at any time.
7 The Fund's Distributor has voluntarily agreed to waive fees and/or
reimburse expenses to limit total annual fund operating expenses for the
Intermediate Bond Fund to 0.95% for Class B shares. These waivers and/or
expense reimbursements may be discontinued at any time.
83
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) FIXED INCOME FUNDS (TAXABLE)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD SHORT FIFTH THIRD U.S.
TERM BOND FUND GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A C ADVISOR A C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 3.50% 1,2 None 2.00% 1 4.75% 1,2 None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON REINVESTED DIVIDENDS None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 1.00% 3 None None 1.00% 3 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.50% 0.50% 0.50% 0.55% 0.55% 0.55%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 0.75% 0.50% 0.25% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.28% 0.53% 0.28% 0.43% 0.68% 0.43%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 4 1.03% 1.78% 1.28% 1.23% 1.98% 1.48%
- --------------------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however. a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
4 The Fund's Advisor and Administrator have voluntarily agreed to waive fees
and/or reimburse expenses to limit total annual fund operating expenses
for the Short Term Bond Fund to: 0.89% for Class A shares, 1.64% for Class
C shares and 1.14% for Advisor shares; and for the U.S. Government Bond
Fund to: 0.94% for Class A shares, 1.69% for Class C shares and 1.19% for
Advisor shares. These waivers and/or expense reimbursements may be
discontinued at any time.
84
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) FIXED INCOME FUNDS (MUNICIPAL)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD FIFTH THIRD INTERMEDIATE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 4.75% 1,2 None None 3.25% 1 3.50% 1,2 None None 2.00% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.51% 0.51% 0.76% 0.51% 0.32% 0.32% 0.57% 0.32%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.31% 5 2.06% 5 2.06% 5 1.56% 5 1.12% 1.87% 6 1.87% 1.37%
- --------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 7 -- -- -- -- 0.20% 0.20% 0.20% 0.20%
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES -- -- -- -- 0.92% 1.67% 1.67% 1.17%
- --------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) FIXED INCOME FUNDS (MUNICIPAL)--FEE TABLE
- --------------------------------------------------------------------------------------------------------------------------------
FIFTH THIRD OHIO FIFTH THIRD MICHIGAN
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A B C ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES 4.75% 1,2 None None 3.25% 1 4.75% 1,2 None None 3.25% 1
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
REINVESTED DIVIDENDS None None None None None None None None
- --------------------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 3 1.00% 4 None None 5.00% 3 1.00% 4 None
- --------------------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.55% 0.55% 0.55% 0.55% 0.45% 0.45% 0.45% 0.45%
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 1.00% 0.75% 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.35% 0.35% 0.60% 0.35% 0.43% 0.43% 0.68% 0.43%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES 1.15% 5 1.90% 5 1.90% 5 1.40% 5 1.13% 1.88% 1.88% 1.38%
- --------------------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT 7 -- -- -- -- 0.20% 0.20% 0.20% 0.20%
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES -- -- -- -- 0.93% 8 1.68% 1.68% 1.18%
- --------------------------------------------------------------------------------------------------------------------------------
1 Lower sales charges are available depending upon the amount invested.
2 For investments of $1 million or more, no sales charges apply; however, a
contingent deferred sales charge ("CDSC") of 1% is applicable to
redemptions within 18 months of purchase. See "Calculation of Sales
Charges."
3 5% in the first year after purchase, declining to 4% in the second year,
3% in the third and fourth years, 2% in the fifth year, 1% in the sixth
year and eliminated thereafter. Approximately eight years after purchase,
Class B shares automatically convert to Class A shares.
4 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
5 The Fund's Advisor and Administrator have voluntarily agreed to waive fees
and/or reimburse expenses to limit total annual fund operating expenses
for the Municipal Bond Fund to: 0.86% for Class A shares, 1.61% for Class
B shares, 1.61% for Class C shares and 1.11% for Advisor shares; and for
the Ohio Municipal Bond Fund to: 1.04% for Class A shares, 1.79% for Class
B shares, 1.79% for Class C shares and 1.29% for Advisor shares. These
waivers and/or expense reimbursements may be discontinued at any time.
6 The Fund's Distributor has voluntarily agreed to waive fees and/or
reimburse expenses to limit total annual fund operating expenses for the
Intermediate Municipal Bond Fund to 0.92% for Class B shares. These
waivers and/or expense reimbursements may be discontinued at any time.
7 The Funds' Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007 to limit total
annual fund operating expenses for the Intermediate Municipal Bond Fund
to: 0.92% for Class A shares, 1.67% for Class B shares, 1.67% for Class C
shares and 1.17% for Advisor shares and for the Michigan Municipal Bond
Fund to: 0.93% for Class A shares, 1.68% for Class B shares, 1.68% for
Class C shares and 1.18% for Advisor shares. Under the terms of the
expense limitation agreement, fees waived or expenses reimbursed by the
Advisor and Administrator are subject to reimbursement by the Funds for
the 13 month period in which the expense limitation agreement is in
effect. No reimbursement payment will be made by the Fund if it would
result in the Fund exceeding the expense limitation described herein.
8 The Fund's Distributor has voluntarily agreed to waive fees and/or
reimburse expenses to limit total annual operating expenses for the
Michigan Municipal Bond Fund to 0.83% for Class A shares. This waiver
and/or expense reimbursement may be discontinued at any time.
85
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) MONEY MARKET FUNDS--FEE TABLE
- -----------------------------------------------------------------------------------------------------------------------
FIFTH THIRD FIFTH THIRD FIFTH THIRD FIFTH THIRD
PRIME GOVERNMENT MICHIGAN MUNICIPAL
MONEY MONEY MUNICIPAL MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS NAME A B C ADVISOR A A A
- -----------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED
ON PURCHASES None None None None None None None
- -----------------------------------------------------------------------------------------------------------------------
MAXIMUM SALES CHARGE (LOAD) IMPOSED
ON REINVESTED DIVIDENDS None None None None None None None
- -----------------------------------------------------------------------------------------------------------------------
MAXIMUM DEFERRED SALES LOAD None 5.00% 1 1.00% 2 None None None None
- -----------------------------------------------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
- -----------------------------------------------------------------------------------------------------------------------
MANAGEMENT FEES 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.50%
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12B-1) FEES 0.25% 1.00% 0.75% 0.50% 0.25% 0.25% 0.25%
- -----------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES 0.26% 0.26% 0.51% 0.26% 0.28% 0.27% 0.31%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND
OPERATING EXPENSES 0.91% 1.66% 1.66% 1.16% 0.93% 3 0.92% 1.06%
- -----------------------------------------------------------------------------------------------------------------------
FEE WAIVER AND/OR
EXPENSE REIMBURSEMENT 4 0.12% 0.12% 0.12% 0.12% -- 0.13% 0.60%
- -----------------------------------------------------------------------------------------------------------------------
NET EXPENSES 0.79% 1.54% 1.54% 1.04% -- 0.79% 5 0.46%
- -----------------------------------------------------------------------------------------------------------------------
1 5% the first year after purchase, declining to 4% in the second year, 3%
in the third and fourth years, 2% in the fifth year, 1% in the sixth year
and eliminated thereafter. Approximately eight years after purchase, Class
B shares automatically convert to Class A shares.
2 The CDSC for Class C shares of 1.00% applies to shares redeemed within the
first year of purchase.
3 The Fund's Advisor, Distributor, and Administrator have voluntarily agreed
to waive fees and/or reimburse expenses to limit total annual fund
operating expenses for the Government Money Market Fund to: 0.73% for
Class A shares. This waiver and/or expense reimbursement may be
discontinued at any time.
4 The Funds' Advisor and Administrator have contractually agreed to waive
fees and/or reimburse expenses through November 28, 2007 to limit total
annual fund operating expenses for the Prime Money Market Fund to: 0.79%
for Class A shares, 1.54% for Class B shares, 1.54% for Class C shares and
1.04% for Advisor shares; for the Michigan Municipal Money Market Fund to:
0.79% for Class A shares; and for the Municipal Money Market Fund to:
0.46% for Class A shares. Under the terms of the expense limitation
agreement, fees waived or expenses reimbursed by the Advisor and
Administrator are subject to reimbursement by the Funds for the 13 month
period in which the expense limitation agreement is in effect. No
reimbursement payment will be made by the Fund if it would result in the
Fund exceeding the expense limitation described herein.
5 The Funds' Distributor has voluntarily agreed to waive fees and/or
reimburse expenses to limit total annual operating expenses for the
Michigan Municipal Money Market Fund to 0.70% for Class A shares. These
waivers and/or expense reimbursements may be discontinued at any time.
86
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
EXPENSE EXAMPLES
- --------------------------------------------------------------------------------
Use the tables below to compare fees and expenses with the fees and expenses of
other mutual funds. The tables illustrate the amount of fees and expenses you
and the Fund would pay, assuming a $10,000 initial investment, 5% annual return,
payment of maximum sales charges, and no changes in the Fund's operating
expenses. Amounts are presented assuming redemption at the end of each period.
Because these examples are hypothetical and for comparison only, your actual
costs may be different.
EQUITY FUNDS (GROWTH STYLE)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD SMALL CAP GROWTH FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 624 $ 886 $ 1,167 $ 1,968
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 706 $ 937 $ 1,293 $ 2,166
Assuming no Redemption $ 206 $ 637 $ 1,093 $ 2,166
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 306 $ 637 $ 1,093 $ 2,358
Assuming no Redemption $ 206 $ 637 $ 1,093 $ 2,358
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 476 $ 793 $ 1,132 $ 2,089
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MID CAP GROWTH FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 629 $ 900 $ 1,192 $ 2,021
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 711 $ 952 $ 1,319 $ 2,219
Assuming no Redemption $ 211 $ 652 $ 1,119 $ 2,219
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 311 $ 652 $ 1,119 $ 2,410
Assuming no Redemption $ 211 $ 652 $ 1,119 $ 2,410
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 480 $ 808 $ 1,157 $ 2,142
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD QUALITY GROWTH FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 628 $ 899 $ 1,191 $ 2,021
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 710 $ 951 $ 1,318 $ 2,218
Assuming no Redemption $ 210 $ 651 $ 1,118 $ 2,218
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 310 $ 651 $ 1,118 $ 2,410
Assuming no Redemption $ 210 $ 651 $ 1,118 $ 2,410
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 480 $ 807 $ 1,157 $ 2,141
- ------------------------------------------------------------------------------------------------------------
EQUITY FUNDS (CORE STYLE)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD LARGE CAP CORE FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 613 $ 875 $ 1,157 $ 1,959
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 695 $ 926 $ 1,283 $ 2,157
Assuming no Redemption $ 195 $ 626 $ 1,083 $ 2,157
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 295 $ 626 $ 1,083 $ 2,350
Assuming no Redemption $ 195 $ 626 $ 1,083 $ 2,350
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 465 $ 782 $ 1,122 $ 2,080
- ------------------------------------------------------------------------------------------------------------
87
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
EQUITY FUNDS (CORE STYLE) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD EQUITY INDEX FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 543 $ 719 $ 910 $ 1,460
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 621 $ 765 $ 1,032 $ 1,664
Assuming no Redemption $ 121 $ 465 $ 832 $ 1,664
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 221 $ 465 $ 832 $ 1,866
Assuming no Redemption $ 121 $ 465 $ 832 $ 1,866
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 393 $ 624 $ 873 $ 1,586
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD BALANCED FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 642 $ 942 $ 1,263 $ 2,170
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 725 $ 994 $ 1,390 $ 2,365
Assuming no Redemption $ 225 $ 694 $ 1,190 $ 2,365
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 325 $ 694 $ 1,190 $ 2,554
Assuming no Redemption $ 225 $ 694 $ 1,190 $ 2,554
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 494 $ 849 $ 1,228 $ 2,289
- ------------------------------------------------------------------------------------------------------------
EQUITY FUNDS (VALUE STYLE)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MICRO CAP VALUE FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 659 $ 994 $ 1,352 $ 2,357
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 743 $ 1,048 $ 1,480 $ 2,550
Assuming no Redemption $ 243 $ 748 $ 1,280 $ 2,550
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 343 $ 748 $ 1,280 $ 2.736
Assuming no Redemption $ 243 $ 748 $ 1,280 $ 2,736
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 512 $ 903 $ 1,318 $ 2,475
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD SMALL CAP VALUE FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 644 $ 947 $ 1,273 $ 2,191
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 727 $ 1,000 $ 1,400 $ 2,386
Assuming no Redemption $ 227 $ 700 $ 1,200 $ 2,386
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 327 $ 700 $ 1,200 $ 2,575
Assuming no Redemption $ 227 $ 700 $ 1,200 $ 2,575
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 496 $ 855 $ 1,238 $ 2,310
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MULTI CAP VALUE FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 639 $ 957 $ 1,297 $ 2,254
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 722 $ 1,010 $ 1,424 $ 2,449
Assuming no Redemption $ 222 $ 710 $ 1,224 $ 2,449
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 322 $ 710 $ 1,224 $ 2,637
Assuming no Redemption $ 222 $ 710 $ 1,224 $ 2,637
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 491 $ 865 $ 1,262 $ 2,373
- ------------------------------------------------------------------------------------------------------------
88
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
EQUITY FUNDS (VALUE STYLE) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD DISCIPLINED LARGE CAP VALUE FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 622 $ 892 $ 1,182 $ 2,006
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 704 $ 943 $ 1,308 $ 2,203
Assuming no Redemption $ 204 $ 643 $ 1,108 $ 2,203
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 304 $ 643 $ 1,108 $ 2,395
Assuming no Redemption $ 204 $ 643 $ 1,108 $ 2,395
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 474 $ 799 $ 1,147 $ 2,127
- ------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS LIFEMODEL AGGRESSIVE FUND SM 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 532 $ 684 $ 848 $ 1,325
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 610 $ 729 $ 970 $ 1,530
Assuming no Redemption $ 110 $ 429 $ 770 $ 1,530
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 210 $ 429 $ 770 $ 1,734
Assuming no Redemption $ 110 $ 429 $ 770 $ 1,734
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 382 $ 588 $ 811 $ 1,452
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS LIFEMODEL MODERATELY AGGRESSIVE FUND SM 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 532 $ 677 $ 835 $ 1,294
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 610 $ 722 $ 957 $ 1,499
Assuming no Redemption $ 110 $ 422 $ 757 $ 1,499
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 210 $ 422 $ 757 $ 1,703
Assuming no Redemption $ 110 $ 422 $ 757 $ 1,703
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 382 $ 582 $ 798 $ 1,421
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS LIFEMODEL MODERATE FUND SM 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 532 $ 673 $ 827 $ 1,273
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 610 $ 718 $ 948 $ 1,478
Assuming no Redemption $ 110 $ 418 $ 748 $ 1,478
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 210 $ 418 $ 748 $ 1,683
Assuming no Redemption $ 110 $ 418 $ 748 $ 1,683
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 382 $ 578 $ 790 $ 1,400
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS LIFEMODEL MODERATELY CONSERVATIVE FUND SM 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 532 $ 688 $ 857 $ 1,346
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 610 $ 733 $ 979 $ 1,551
Assuming no Redemption $ 110 $ 433 $ 779 $ 1,551
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 210 $ 433 $ 779 $ 1,755
Assuming no Redemption $ 110 $ 433 $ 779 $ 1,755
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 382 $ 593 $ 820 $ 1,473
- ------------------------------------------------------------------------------------------------------------
89
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY (CONTINUED)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD FUNDS LIFEMODEL CONSERVATIVE FUND SM 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 532 $ 704 $ 891 $ 1,430
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 610 $ 750 $ 1,013 $ 1,634
Assuming no Redemption $ 110 $ 450 $ 813 $ 1,634
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 210 $ 450 $ 813 $ 1,836
Assuming no Redemption $ 110 $ 450 $ 813 $ 1,836
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 382 $ 609 $ 854 $ 1,556
- ------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME STRATEGY
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD STRATEGIC INCOME FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 617 $ 941 $ 1,288 $ 2,264
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 699 $ 994 $ 1,416 $ 2,459
Assuming no Redemption $ 199 $ 694 $ 1,216 $ 2,459
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 299 $ 694 $ 1,216 $ 2,647
Assuming no Redemption $ 199 $ 694 $ 1,216 $ 2,647
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 469 $ 849 $ 1,254 $ 2,383
- ------------------------------------------------------------------------------------------------------------
SPECIALTY STRATEGY
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD DIVIDEND GROWTH FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 595 $ 1,002 $ 1,638 $ 3,343
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 676 $ 1,057 $ 1,771 $ 3,529
Assuming no Redemption $ 176 $ 757 $ 1,571 $ 3,529
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 276 $ 757 $ 1,571 $ 3,698
Assuming no Redemption $ 176 $ 757 $ 1,571 $ 3,698
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 446 $ 911 $ 1,606 $ 3,455
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD TECHNOLOGY FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 670 $ 1,026 $ 1,406 $ 2,469
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 754 $ 1,082 $ 1,535 $ 2,662
Assuming no Redemption $ 254 $ 782 $ 1,335 $ 2,662
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 354 $ 782 $ 1,335 $ 2,846
Assuming no Redemption $ 254 $ 782 $ 1,335 $ 2,846
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 522 $ 935 $ 1,373 $ 2,587
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD INTERNATIONAL EQUITY FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 655 $ 984 $ 1,335 $ 2,324
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 738 $ 1,038 $ 1,464 $ 2,518
Assuming no Redemption $ 238 $ 738 $ 1,264 $ 2,518
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 338 $ 738 $ 1,264 $ 2,705
Assuming no Redemption $ 238 $ 738 $ 1,264 $ 2,705
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 507 $ 892 $ 1,301 $ 2,443
- ------------------------------------------------------------------------------------------------------------
90
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FIXED INCOME FUNDS (TAXABLE)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD HIGH YIELD BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 571 $ 859 $ 1,167 $ 2,041
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 677 $ 934 $ 1,317 $ 2,259
Assuming no Redemption $ 177 $ 634 $ 1,117 $ 2,259
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 277 $ 634 $ 1,117 $ 2,450
Assuming no Redemption $ 177 $ 634 $ 1,117 $ 2,450
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 447 $ 790 $ 1,155 $ 2,183
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 587 $ 823 $ 1,078 $ 1,806
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 693 $ 897 $ 1,226 $ 2,027
Assuming no Redemption $ 193 $ 597 $ 1,026 $ 2,027
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 293 $ 597 $ 1,026 $ 2,222
Assuming no Redemption $ 193 $ 597 $ 1,026 $ 2,222
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 463 $ 754 $ 1,066 $ 1,950
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD INTERMEDIATE BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 456 $ 681 $ 925 $ 1,621
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 686 $ 876 $ 1,190 $ 1,951
Assuming no Redemption $ 186 $ 576 $ 990 $ 1,951
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 286 $ 576 $ 990 $ 2,148
Assuming no Redemption $ 186 $ 576 $ 990 $ 2,148
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 333 $ 613 $ 914 $ 1,769
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD SHORT TERM BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 451 $ 666 $ 899 $ 1,565
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 281 $ 560 $ 964 $ 2,095
Assuming no Redemption $ 181 $ 560 $ 964 $ 2,095
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 328 $ 598 $ 888 $ 1,714
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD U.S. GOVERNMENT BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 599 $ 862 $ 1,144 $ 1,947
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 301 $ 621 $ 1,068 $ 2,306
Assuming no Redemption $ 201 $ 621 $ 1,068 $ 2,306
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 471 $ 778 $ 1,107 $ 2,036
- ------------------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS (MUNICIPAL)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MUNICIPAL BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 602 $ 870 $ 1,159 $ 1,979
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 709 $ 946 $ 1,308 $ 2,197
Assuming no Redemption $ 209 $ 646 $ 1,108 $ 2,197
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 309 $ 646 $ 1,108 $ 2,390
Assuming no Redemption $ 209 $ 646 $ 1,108 $ 2,390
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 479 $ 802 $ 1,147 $ 2,121
- ------------------------------------------------------------------------------------------------------------
91
SHAREHOLDER FEES AND FUND EXPENSES
- --------------------------------------------------------------------------------
FIXED INCOME FUNDS (MUNICIPAL) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 441 $ 674 $ 927 $ 1,648
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 670 $ 868 $ 1,192 $ 1,978
Assuming no Redemption $ 170 $ 568 $ 992 $ 1,978
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 270 $ 568 $ 992 $ 2,174
Assuming no Redemption $ 170 $ 568 $ 992 $ 2,174
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 317 $ 606 $ 916 $ 1,796
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD OHIO MUNICIPAL BOND FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 587 $ 823 $ 1,078 $ 1,806
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 693 $ 897 $ 1,226 $ 2,027
Assuming no Redemption $ 193 $ 597 $ 1,026 $ 2,027
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 293 $ 597 $ 1,026 $ 2,222
Assuming no Redemption $ 193 $ 597 $ 1,026 $ 2,222
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 463 $ 754 $ 1,066 $ 1,950
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 565 $ 798 $ 1,049 $ 1,767
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 671 $ 871 $ 1,198 $ 1,989
Assuming no Redemption $ 171 $ 571 $ 998 $ 1,989
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 271 $ 571 $ 998 $ 2,185
Assuming no Redemption $ 171 $ 571 $ 998 $ 2,185
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 441 $ 729 $ 1,037 $ 1,912
- ------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD PRIME MONEY MARKET FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 81 $ 278 $ 492 $ 1,109
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Assuming Redemption $ 657 $ 812 $ 1,091 $ 1,755
Assuming no Redemption $ 157 $ 512 $ 891 $ 1,755
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Assuming Redemption $ 257 $ 512 $ 891 $ 1,955
Assuming no Redemption $ 157 $ 512 $ 891 $ 1,955
- ------------------------------------------------------------------------------------------------------------
ADVISOR SHARES $ 106 $ 357 $ 627 $ 1,398
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD GOVERNMENT MONEY MARKET FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 95 $ 296 $ 515 $ 1,143
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MICHIGAN MUNICIPAL MONEY MARKET FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 81 $ 280 $ 497 $ 1,119
- ------------------------------------------------------------------------------------------------------------
FIFTH THIRD MUNICIPAL MONEY MARKET FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES $ 47 $ 277 $ 526 $ 1,240
- ------------------------------------------------------------------------------------------------------------
92
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
NAME POLICIES
- --------------------------------------------------------------------------------
To comply with Securities and Exchange Commission ("SEC") rules regarding the
use of descriptive words in a fund's name, some Funds have adopted policies of
investing at least 80% of their net assets plus any borrowings made for
investment purposes in specific types of investments or industries. Each Fund's
policy is described in its summary description under the heading "Principal
Investment Strategies." A Fund will not change its name policy without providing
its shareholders at least 60 days' prior written notice.
INVESTMENT PRACTICES
- --------------------------------------------------------------------------------
Each Fund may invest in a variety of securities and employ a number of
investment techniques. The following table includes a list of permissible
securities and investment techniques that each Fund may use; however, the
selection of such securities and techniques is left to the investment discretion
of the Advisor or Subadvisor. Each security and technique involves certain
risks. Following the table is a discussion of the risks associated with these
securities and techniques. You may also consult the Statement of Additional
Information for additional details regarding these permissible investments.
93
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
Foreign
FIFTH THIRD FUNDS Asset-Backed Common Convertible Delayed Delivery/ Currency
EQUITY FUNDS Securities Stock Securities When-Issueds Derivatives Transactions
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Quality Growth Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Large Cap Core Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Equity Index Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Balanced Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Multi Cap Value Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive Fund SM
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive Fund SM
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate Fund SM
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative Fund SM
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative Fund SM
- ----------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME STRATEGY
- ----------------------------------------------------------------------------------------------------------------------------------
Strategic Income Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY STRATEGY
- ----------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Technology Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS
- ----------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Government Bond Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- ----------------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Government Money Market Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Money Market Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Money Market Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Institutional Money Market Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund X X
- ----------------------------------------------------------------------------------------------------------------------------------
Guaranteed High-Yield/ Investment Investment
FIFTH THIRD FUNDS Investment High-Risk Debt Illiquid Company Grade Loan
EQUITY FUNDS Contracts Securities Securities Securities Bonds Participations
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Quality Growth Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Large Cap Core Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Equity Index Fund X X
- ----------------------------------------------------------------------------------------------------------------------------------
Balanced Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Multi Cap Value Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive Fund SM X
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive Fund SM X
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate Fund SM X
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative Fund SM X
- ----------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative Fund SM X
- ----------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME STRATEGY
- ----------------------------------------------------------------------------------------------------------------------------------
Strategic Income Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY STRATEGY
- ----------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Technology Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS
- ----------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Bond Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Fund X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Government Bond Fund X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- ----------------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Government Money Market Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Money Market Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Money Market Fund X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
Institutional Money Market Fund X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund X
- ----------------------------------------------------------------------------------------------------------------------------------
Money Mortgage Non-U.S.
FIFTH THIRD FUNDS Market Mortgage-Backed Dollar Municipal Traded Foreign Preferred
EQUITY FUNDS Instruments Securities Rolls Securities Securities Stocks
- --------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Quality Growth Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Large Cap Core Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Equity Index Fund X
- --------------------------------------------------------------------------------------------------------------------------------
Balanced Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Multi Cap Value Fund X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive Fund SM X
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive Fund SM X
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate Fund SM X
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative Fund SM X
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative Fund SM X
- --------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME STRATEGY
- --------------------------------------------------------------------------------------------------------------------------------
Strategic Income Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
SPECIALTY STRATEGY
- --------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Technology Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
International Equity Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS
- --------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Bond Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Fund X X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Government Bond Fund X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- --------------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund X X X
- --------------------------------------------------------------------------------------------------------------------------------
Government Money Market Fund X X X
- --------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Money Market Fund X X X
- --------------------------------------------------------------------------------------------------------------------------------
Municipal Money Market Fund X X X
- --------------------------------------------------------------------------------------------------------------------------------
Institutional Money Market Fund X X X
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund X
- --------------------------------------------------------------------------------------------------------------------------------
Real Estate
Investment Reverse Small and
FIFTH THIRD FUNDS Trusts Restricted Repurchase Securities Short-Term Micro Cap
EQUITY FUNDS (REITs) Securities Agreements Lending Trading Equities
- -------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Quality Growth Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Large Cap Core Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Equity Index Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Balanced Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Multi Cap Value Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY
- -------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive Fund SM
- -------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive Fund SM
- -------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate Fund SM
- -------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative Fund SM
- -------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative Fund SM
- -------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME STRATEGY
- -------------------------------------------------------------------------------------------------------------------------
Strategic Income Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
SPECIALTY STRATEGY
- -------------------------------------------------------------------------------------------------------------------------
Dividend Growth Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Technology Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
International Equity Fund X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS
- -------------------------------------------------------------------------------------------------------------------------
High Yield Bond Fund X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Bond Fund X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Fund X X X X X
- -------------------------------------------------------------------------------------------------------------------------
Short Term Bond Fund X X X X X
- -------------------------------------------------------------------------------------------------------------------------
U.S. Government Bond Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- -------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Government Money Market Fund X X X
- -------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Money Market Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Municipal Money Market Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
Institutional Money Market Fund X X X X
- -------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund X
- -------------------------------------------------------------------------------------------------------------------------
U.S. Government U.S. Traded Variable and
FIFTH THIRD FUNDS Stripped Agency Foreign U.S. Treasury Floating Rate
EQUITY FUNDS Obligations Securities Securities Obligations Instruments Warrants
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Core Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Balanced Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Multi Cap Value Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION STRATEGY
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive Fund SM
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive Fund SM
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate Fund SM
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative Fund SM
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative Fund SM
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME STRATEGY
- ------------------------------------------------------------------------------------------------------------------------------------
Strategic Income Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
SPECIALTY STRATEGY
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Technology Fund X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
International Equity Fund X X X X X X
FIXED INCOME FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Government Bond Fund X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Prime Money Market Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Government Money Market Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Money Market Fund X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Money Market Fund X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Money Market Fund X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund X X X
- ------------------------------------------------------------------------------------------------------------------------------------
Zero-Coupon
FIFTH THIRD FUNDS Debt
EQUITY FUNDS Obligations
- ---------------------------------------------------------
Small Cap Growth Fund X
- ---------------------------------------------------------
Mid Cap Growth Fund X
- ---------------------------------------------------------
Quality Growth Fund X
- ---------------------------------------------------------
Large Cap Core Fund X
- ---------------------------------------------------------
Equity Index Fund X
- ---------------------------------------------------------
Balanced Fund X
- ---------------------------------------------------------
Micro Cap Value Fund X
- ---------------------------------------------------------
Small Cap Value Fund X
- ---------------------------------------------------------
Multi Cap Value Fund X
- ---------------------------------------------------------
Disciplined Large Cap Value Fund X
- ---------------------------------------------------------
ASSET ALLOCATION STRATEGY
- ---------------------------------------------------------
LifeModel Aggressive Fund SM
- ---------------------------------------------------------
LifeModel Moderately Aggressive Fund SM
- ---------------------------------------------------------
LifeModel Moderate Fund SM
- ---------------------------------------------------------
LifeModel Moderately Conservative Fund SM
- ---------------------------------------------------------
LifeModel Conservative Fund SM
- ---------------------------------------------------------
STRATEGIC INCOME STRATEGY
- ---------------------------------------------------------
Strategic Income Fund X
- ---------------------------------------------------------
SPECIALTY STRATEGY
- ---------------------------------------------------------
Dividend Growth Fund X
- ---------------------------------------------------------
Technology Fund X
- ---------------------------------------------------------
International Equity Fund X
- ---------------------------------------------------------
FIXED INCOME FUNDS
- ---------------------------------------------------------
High Yield Bond Fund X
- ---------------------------------------------------------
Bond Fund X
- ---------------------------------------------------------
Intermediate Bond Fund X
- ---------------------------------------------------------
Short Term Bond Fund X
- ---------------------------------------------------------
U.S. Government Bond Fund X
- ---------------------------------------------------------
Municipal Bond Fund X
- ---------------------------------------------------------
Intermediate Municipal Bond Fund X
- ---------------------------------------------------------
Ohio Municipal Bond Fund X
- ---------------------------------------------------------
Michigan Municipal Bond Fund X
- ---------------------------------------------------------
MONEY MARKET FUNDS
- ---------------------------------------------------------
Prime Money Market Fund X
- ---------------------------------------------------------
Government Money Market Fund X
- ---------------------------------------------------------
Michigan Municipal Money Market Fund X
- ---------------------------------------------------------
Municipal Money Market Fund X
- ---------------------------------------------------------
Institutional Money Market Fund X
- ---------------------------------------------------------
U.S. Treasury Money Market Fund X
- ---------------------------------------------------------
Spread 94-95
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES: Securities secured by company receivables, home equity
loans, truck and auto loans, leases, credit card receivables and securities
backed by other types of receivables or other assets.
COLLATERALIZED LOAN OBLIGATIONS: A type of asset-backed security that is an
obligation of a trust typically collateralized by pools of loans.
COMMON STOCK: Shares of ownership of a company.
CONVERTIBLE SECURITIES: Bonds or preferred stock that convert to common stock.
DELAYED DELIVERY TRANSACTIONS/FORWARD COMMITMENTS/WHEN-ISSUEDS: A purchase of,
or contract to purchase, securities at a fixed price for delivery at a future
date. Under normal market conditions, a Fund's obligations under these
commitments will not exceed 25% of its total assets.
DERIVATIVES: Instruments whose value is derived from an underlying contract,
index or security, or any combination thereof, including futures, options,
(e.g., put and calls), options on futures, swaps, swaptions, some
mortgage-backed securities and custody receipts.
CALL AND PUT OPTIONS: A call option gives the buyer the right to buy, and
obligates the seller of the option to sell, a security at a specified price. A
put option gives the buyer the right to sell, and obligates the seller of the
option to buy a security at a specified price. The Money Market Funds, Dividend
Growth Fund, Intermediate Municipal Bond Fund, and Ohio Municipal Bond Fund may
not invest in these securities. In addition, the following Funds may only buy or
sell listed put options on financial futures contracts or buy or sell listed
call options or over-the-counter call options on futures contracts: Micro Cap
Value Fund, Multi Cap Value Fund, and Strategic Income Fund.
CUSTODY RECEIPTS: Derivative products which, in the aggregate, evidence
direct ownership in a pool of securities, such as Lehman Brothers TRAINs and
Morgan Stanley TRACERs.
FUTURES AND RELATED OPTIONS: A contract providing for the future sale and
purchase of a specified amount of a specified security, class of securities, or
an index at a specified time in the future and at a specified price. The Money
Market Funds, Dividend Growth Fund, Intermediate Municipal Bond Fund, and Ohio
Municipal Bond Fund may not invest in these.
STOCK-INDEX OPTIONS: A security that combines features of options with
securities trading using composite stock indices. The Money Market Funds, Bond
Funds, and Dividend Growth Fund may not invest in these.
STRUCTURED NOTES: Debt obligations that may include components such as
swaps, forwards, options, caps or floors, which change their return pattern.
They may be used to alter the risks to a portfolio or, alternatively, may be
used to expose a portfolio to asset classes or markets in which one does not
desire to invest directly. The Money Market Funds may not invest in these.
SWAPS AND SWAPTIONS: Two-party contracts where the parties agree to
exchange net returns (or differentials in rates of return) earned or realized on
particular predetermined investments or instruments. The Money Market Funds may
not invest in these.
FOREIGN CURRENCY TRANSACTIONS: Foreign currency transactions include forward
foreign currency exchange contracts, foreign currency options, and foreign
currency futures transactions.
FOREIGN SECURITIES--NON-U.S. TRADED: Stocks, bonds, and other obligations issued
by foreign companies, foreign governments, and supranational entities that trade
on non-U.S. exchanges.
FOREIGN SECURITIES--U.S. TRADED: Stocks, bonds, and other obligations issued by
foreign companies, foreign governments, and supranational entities that trade on
U.S. exchanges.
AMERICAN DEPOSITARY RECEIPTS ("ADRS"): ADRs are foreign shares of a
company held by a U.S. bank that issues a receipt evidencing ownership.
YANKEE BONDS AND SIMILAR DEBT OBLIGATIONS: U.S.-dollar denominated bonds
issued by foreign corporations or governments.
CANADA BONDS: Issued by Canadian provinces.
SOVEREIGN BONDS: Issued by the government of a foreign country.
SUPRANATIONAL BONDS: Issued by supranational entities, such as the
World Bank and European Investment Bank.
GUARANTEED INVESTMENT CONTRACTS: Contract between a fund and an insurance
company that guarantees a specific rate of return on the invested capital over
the life of the contract.
96
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
HIGH-YIELD/HIGH-RISK DEBT SECURITIES: High-yield/high-risk debt securities are
securities that are rated below investment grade by the primary rating agencies
(e.g., BB or lower by Standard & Poor's and Ba or lower by Moody's). These
securities are considered speculative and involve greater risk of loss than
investment grade debt securities. Other terms commonly used to describe such
securities include "lower rated bonds," "non-investment grade bonds" and "junk
bonds."
ILLIQUID SECURITIES: Securities that cannot be disposed of within seven days in
the ordinary course of business at approximately the amount at which the Fund
has valued the security.
INVESTMENT COMPANY SECURITIES: Shares of investment companies. Investment
companies may include money market funds and shares of other registered
investment companies for which the Advisor to a Fund or any of its affiliates
serves as investment advisor, administrator or distributor.
BEAR FUNDS: A fund intended to increase/decrease in value inversely to the
stock or equity index to which it relates. The Money Market Funds may not invest
in these.
CLOSED-END FUNDS: Funds traded on an exchange, which are not redeemable on
a continuous basis. The Money Market Funds may not invest in these.
EXCHANGE-TRADED FUNDS ("ETFS"): ETFs entitle a holder to receive
proportionate quarterly cash distributions corresponding to the dividends that
accrue to the index stocks in the underlying portfolios, less trust expenses.
Examples of ETFs include Standard & Poor's Depositary Receipts ("SPDRs"). A SPDR
is an ownership interest in a long-term unit investment trust that holds a
portfolio of common stocks designed to track the price performance and dividend
yield of an index, such as the S&P 500(R) Index. iShares(R) are also ETFs and
are index funds that trade like shares. Each share represents a portfolio of
stocks designed to track closely one specific index. The Money Market Funds may
not invest in these.
LEVERAGED FUNDS: Funds that utilize leverage in an attempt to maximize
gains. The Money Market Funds may not invest in these.
INVESTMENT GRADE BONDS: Interest-bearing or discounted securities that obligate
the issuer to pay the bondholder a specified sum of money, usually at specific
intervals, and to repay the principal amount of the loan at maturity. These
bonds are rated BBB or better by S&P or Baa or better by Moody's or similarly
rated by other nationally recognized statistical rating organizations, or, if
not rated, determined to be of comparable quality by the Advisor.
LOAN PARTICIPATIONS: Interests in loans to U.S. corporations that are
administered by the lending bank or agent for a syndicate of lending banks.
MONEY MARKET INSTRUMENTS: Investment-grade, U.S.-dollar denominated debt
securities that have remaining maturities of one year or less. These securities
may include U.S. Government obligations, commercial paper and other short-term
corporate obligations, repurchase agreements collateralized with U.S. Government
securities, certificates of deposit, bankers' acceptances, and other financial
institution obligations. Money market instruments may carry fixed or variable
interest rates.
BANKERS' ACCEPTANCES: Bills of exchange or time drafts drawn on and
accepted by a commercial bank. Maturities are generally six months or less.
CERTIFICATES OF DEPOSIT: Negotiable instruments with a stated maturity.
COMMERCIAL PAPER: Secured and unsecured short-term promissory notes issued
by corporations and other entities. Maturities generally vary from a few days to
nine months.
REPURCHASE AGREEMENTS: The purchase of a security and the simultaneous
commitment to return the security to the seller at an agreed upon price on an
agreed upon date.
TIME DEPOSITS: Non-negotiable receipts issued by a bank in exchange for
the deposit of funds.
MORTGAGE-BACKED SECURITIES: Debt obligations secured by real estate loans and
pools of loans. These include collateralized mortgage obligations and real
estate mortgage investment conduits.
COLLATERALIZED MORTGAGE OBLIGATIONS: Mortgage-backed bonds that separate
mortgage pools into different maturity classes.
MORTGAGE DOLLAR ROLLS: Transactions in which a Fund sells securities and
simultaneously contracts with the same counterparty to repurchase similar but
not identical securities on a specified future date.
97
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
MUNICIPAL SECURITIES: Securities issued by a state or political subdivision to
obtain funds for various public purposes. Municipal securities include (a)
governmental lease certificates of participation issued by state or municipal
authorities where payment is secured by installment payments for equipment,
buildings, or other facilities being leased by the state or municipality; (b)
municipal notes and tax-exempt commercial paper; (c) serial bonds; (d) tax
anticipation notes sold to finance working capital needs of municipalities in
anticipation of receiving taxes at a later date; (e) bond anticipation notes
sold in anticipation of the issuance of long-term bonds in the future; (f)
pre-refunded municipal bonds whose timely payment of interest and principal is
ensured by an escrow of U.S. Government obligations; and (g) general obligation
bonds.
STAND-BY COMMITMENTS: Contract where a dealer agrees to purchase at a
fund's option a specified municipal obligation at its amortized cost value to a
fund plus accrued interest.
PREFERRED STOCKS: Equity securities that generally pay dividends at a specified
rate and have preference over common stock in the payment of dividends and
liquidation. These securities generally do not carry voting rights.
REAL ESTATE INVESTMENT TRUSTS ("REITS"): Pooled investment vehicles investing
primarily in income producing real estate or real estate loans or interest.
RESTRICTED SECURITIES: Securities not registered under the Securities Act of
1933, such as privately placed commercial paper and Rule 144A securities.
REVERSE REPURCHASE AGREEMENTS: The sale of a security and the simultaneous
commitment to buy the security back at an agreed upon price on an agreed upon
date. This is treated as a borrowing by a Fund.
SECURITIES LENDING: The lending of up to 33 1/3% of the Fund's total assets,
plus the amount of the securities out on loan. In return, the Fund will receive
cash, other securities, and/or letters of credit.
SHORT-TERM TRADING: The sale of a security soon after its purchase. A portfolio
engaging in such trading will have higher turnover and transaction expenses.
SMALL AND MICRO CAP EQUITIES: Equity securities of companies with market
capitalizations within or lower than those included in the Russell 2000(R)
Index.
STRIPPED OBLIGATIONS: U.S. Treasury Obligations and their unmatured interest
coupons that have been separated ("stripped") by their holder, typically a
custodian bank or other institution.
TRUST PREFERRED SECURITIES: Securities possessing characteristics of both equity
and debt issues.
U.S. GOVERNMENT AGENCY SECURITIES: Securities issued by agencies and
instrumentalities of the U.S. Government. These include Fannie Mae and Freddie
Mac.
U.S. TREASURY OBLIGATIONS: Bills, notes, bonds, Ginnie Maes, separately traded
registered interest and principal securities, and coupons under bank entry
safekeeping.
VARIABLE AND FLOATING RATE INSTRUMENTS: Obligations with interest rates that are
reset daily, weekly, quarterly or according to some other period and that may be
payable to a Fund on demand.
WARRANTS: Securities, typically issued with preferred stock or bonds, which give
the holder the right to buy a proportionate amount of common stock at a
specified price.
ZERO-COUPON DEBT OBLIGATIONS: Bonds and other debt obligations that pay no
interest, but are issued at a discount from their value at maturity. When held
to maturity, their entire return equals the difference between their issue price
and their maturity value.
98
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
INVESTMENT RISKS
- --------------------------------------------------------------------------------
Below is a discussion of the types of risks inherent in the securities and
investment techniques listed above as well as those risks discussed in
"Principal Investment Risks." Because of these risks, the value of the
securities held by the Funds may fluctuate, as will the value of your investment
in the Funds. Certain investments and Funds are more susceptible to these risks
than others. Equity securities are subject mainly to market risk. Fixed income
securities are primarily influenced by market, credit and pre-payment risks,
although certain securities may be subject to additional risks.
CREDIT RISK. The risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise become unable to honor a financial
obligation. Credit risk is generally higher for non-investment grade securities.
The price of a security can be adversely affected prior to actual default as its
credit status deteriorates and the probability of default rises. The following
investments and practices are subject to credit risk: asset-backed securities,
bankers' acceptances, bonds, call and put options, certificates of deposit,
commercial paper, convertible securities, derivatives, futures and related
options, guaranteed investment contracts, high-yield/high-risk/debt securities,
investment grade bonds, loan participations, money market instruments,
mortgage-backed securities, municipal securities, real estate investment trusts
(REITs), securities lending, stock-index options, time deposits, U.S. Government
agency securities, variable and floating rate instruments, warrants, when-issued
and delayed delivery transactions, Yankee bonds and similar debt obligations,
and zero-coupon debt obligations.
FOREIGN INVESTMENT RISK. The risk associated with higher transaction costs,
delayed settlements, currency controls and adverse economic developments related
to foreign investments. This also includes the risk that fluctuations in the
exchange rates between the U.S. dollar and foreign currencies may negatively
affect an investment. Adverse changes in exchange rates may erode or reverse any
gains produced by foreign currency denominated investments and may widen any
losses. Exchange rate volatility also may affect the ability of an issuer to
repay U.S. dollar denominated debt, thereby increasing credit risk. Foreign
securities also may be affected by incomplete or inaccurate financial
information on companies, social upheavals or political actions ranging from tax
code changes to governmental collapse. These risks are more significant in
emerging markets. The following investments and practices are subject to foreign
investment risk: American depository receipts (ADRs), foreign currency
transactions, non-U.S. traded and U.S. traded foreign securities, and Yankee
bonds and similar debt obligations.
INTEREST RATE RISK. The risk that debt prices overall will decline over short or
even long periods due to rising interest rates. A rise in interest rates
typically causes a fall in values, while a fall in rates typically causes a rise
in values. Interest rate risk should be modest for shorter-term securities,
moderate for intermediate-term securities, and high for longer-term securities.
Generally, an increase in the average maturity of a Fund will make it more
sensitive to interest rate risk. The market prices of securities structured as
zero coupon are generally affected to a greater extent by interest rate changes.
These securities tend to be more volatile than securities that pay interest
periodically. The following investments and practices are subject to interest
rate risk: asset-backed securities, bankers' acceptances, bonds, certificates of
deposit, collateralized mortgage obligations, commercial paper, derivatives,
high-yield/high-risk/debt securities, investment grade bonds, loan
participations, mortgage-backed securities, REITs, stripped obligations, U.S.
Government agency securities, U.S. Treasury obligations, Yankee bonds and
similar debt obligations, and zero-coupon debt obligations.
INVERSE MARKET RISK. The particular type of market risk (see summary below)
associated with "bear funds" that are intended to perform when equity markets
decline. These investments will lose value when the equity markets to which they
are tied are increasing in value.
LEVERAGE RISK. The risk associated with securities or practices that multiply
small index or market movements into large changes in value. Leverage is often
associated with investments in derivatives, but also may be embedded directly in
the characteristics of other securities.
HEDGED. When a derivative (a security whose value is based on another
security or index) is used as a hedge against an opposite position that a
Fund also holds, any loss generated by the derivative should be
substantially offset by gains on the hedged investment, and vice versa.
Hedges are sometimes subject to imperfect matching between the derivative
and underlying security, and there can be no assurance that a Fund's
hedging transactions will be effective.
SPECULATIVE. To the extent that a derivative is not used as a hedge, a
Fund is directly exposed to the risks of that derivative. Gains or losses
from speculative positions in a derivative may be substantially greater
than the derivative's original cost.
The following investments and practices are subject to leverage risk: bear
funds, call and put options, derivatives, forward commitments, futures and
related options, leveraged funds, repurchase agreements, reverse repurchase
agreements, securities lending, stock-index options, and when-issued and delayed
delivery transactions.
99
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
LIQUIDITY RISK. The risk that certain securities may be difficult or impossible
to sell at the time and the price that would normally prevail in the market. The
seller may have to lower the price, sell other securities instead or forego an
investment opportunity, any of which could have a negative effect on investment
management or performance. This includes the risk of missing out on an
investment opportunity because the assets necessary to take advantage of it are
tied up in less advantageous investments. The following investments and
practices are subject to liquidity risk: asset-backed securities, bankers'
acceptances, bear funds, call and put options, certificates of deposit,
closed-end funds, commercial paper, derivatives, non-U.S. traded and U.S. traded
foreign securities, forward commitments, futures and related options,
high-yield/high-risk/debt securities, illiquid securities, loan participations,
REITs, restricted securities, securities lending, small and micro cap equities,
stock-index options, time deposits, variable and floating rate instruments, and
when-issued and delayed delivery transactions.
MANAGEMENT RISK. The risk that a strategy used by a Fund's portfolio manager may
fail to produce the intended result. This includes the risk that changes in the
value of a hedging instrument will not match those of the asset being hedged.
Incomplete matching can result in unanticipated risks. The following investments
and practices are subject to management risk: call and put options, derivatives,
futures and related options, REITs, and stock-index options.
MARKET RISK. The risk that the market value of a security may move up and down,
sometimes rapidly and unpredictably. These fluctuations may cause a security to
be worth less than the price originally paid for it, or less than it was worth
at an earlier time. Market risk may affect a single issuer, industrial sector of
the economy or the market as a whole. There is also the risk that the current
interest rate may not accurately reflect existing market rates. For fixed income
securities, market risk is largely, but not exclusively, influenced by changes
in interest rates. A rise in interest rates typically causes a fall in values,
while a fall in rates typically causes a rise in values. Finally, key
information about a security or market may be inaccurate or unavailable. This is
particularly relevant to investments in foreign securities. The following
investments/investment practices are subject to market risk: ADRs, asset-backed
securities, bankers' acceptances, bonds, call and put options, certificates of
deposit, closed-end funds, commercial paper, common stock, convertible
securities, derivatives, exchange-traded funds (ETFs), foreign currency
transactions, non-U.S. traded and U.S. traded foreign securities, futures and
related options, high-yield/high-risk/debt securities, illiquid securities,
investment company securities, investment grade bonds, leveraged funds, money
market instruments, mortgage-backed securities, mortgage dollar rolls, municipal
securities, preferred stocks, REITs, repurchase agreements, restricted
securities, reverse repurchase agreements, securities lending, short-term
trading, small and micro cap equities, stand-by commitments, stock-index
options, time deposits, variable and floating rate instruments, warrants,
when-issued and delayed delivery transactions, Yankee bonds and similar debt
obligations, and zero-coupon debt obligations.
POLITICAL RISK. The risk of losses attributable to unfavorable governmental or
political actions, seizure of foreign deposits, changes in tax or trade
statutes, and governmental collapse and war. The following
investments/investment practices are subject to political risk: ADRs, bonds,
foreign currency transactions, non-U.S. traded and U.S. traded foreign
securities, municipal securities, and Yankee bonds and similar debt obligations.
PRE-PAYMENT/CALL RISK. The risk that the principal repayment of a security will
occur at an unexpected time. Pre-payment risk is the chance that the repayment
of a mortgage will occur sooner than expected. Call risk is the possibility
that, during times of declining interest rates, a bond issuer will "call"--or
repay--higher yielding bonds before their stated maturity. Changes in
pre-payment rates can result in greater price and yield volatility. Pre-payments
and calls generally accelerate when interest rates decline. When mortgage and
other obligations are pre-paid or called, a Fund may have to reinvest in
securities with a lower yield. In this event, the Fund would experience a
decline in income--and the potential for taxable capital gains. Further, with
early pre-payment, a Fund may fail to recover any premium paid, resulting in an
unexpected capital loss. Pre-payment/call risk is generally low for securities
with a short-term maturity, moderate for securities with an intermediate-term
maturity, and high for securities with a long-term maturity. The following
investments/investment practices are subject to pre-payment/call risk:
asset-backed securities, bonds, collateralized mortgage obligations,
mortgage-backed securities, and mortgage dollar rolls.
REGULATORY RISK. The risk associated with federal and state laws that may
restrict the remedies that a lender has when a borrower defaults on loans. These
laws include restrictions on foreclosures, redemption rights after foreclosure,
federal and state bankruptcy and debtor relief laws, restrictions on "due on
sale" clauses, and state usury laws. The following investments/investment
practices are subject to regulatory risk: asset-backed securities,
mortgage-backed securities, mortgage dollar rolls, and municipal securities.
SMALLER COMPANY RISK. The risk associated with investment in companies with
smaller market capitalizations. These investments may be riskier than
investments in larger, more established companies. Small companies may be more
vulnerable to economic, market and industry changes. Because economic events
have a greater impact on smaller companies, there may be greater and more
frequent changes in their stock price. Small and Micro Cap Equities are subject
to smaller company risk.
TAX RISK. The risk that the issuer of securities will fail to comply with
certain requirements of the Internal Revenue Code, which would cause adverse tax
consequences. Municipal securities are subject to tax risk.
TURNOVER RISK. The risk that, through active trading, the Fund may have a high
portfolio turnover rate, which can mean higher taxable distributions and lower
performance due to increased brokerage costs.
100
ADDITIONAL INFORMATION ABOUT THE FUNDS' INVESTMENTS
- --------------------------------------------------------------------------------
INVESTMENT POLICIES OF THE UNDERLYING FUNDS
- --------------------------------------------------------------------------------
The following is a brief description of the principal investment policies of the
Institutional Money Market Fund and the U.S. Treasury Money Market Fund, two
underlying Funds of the LifeModel Funds SM whose policies are not otherwise
described in this Prospectus.
INSTITUTIONAL MONEY MARKET FUND
The Fund's fundamental investment objective is current income from short-term
securities consistent with the stability of principal.
The Fund manages its portfolio subject to strict SEC guidelines, which are
designed so that the Fund may maintain a stable $1.00 per share price, although
there is no guarantee that it will be able to do so. All of the Fund's
investments are expected to mature in the short-term (397 days or less) and the
dollar-weighted average portfolio maturity of the Fund may not exceed 90 days.
The Fund invests at least 95% of its portfolio in high-quality securities called
"first tier" securities or unrated securities that are considered equivalent by
the Fund's investment manager. These generally will be corporate securities,
including commercial paper, that at the time of purchase are rated by such firms
as Standard & Poor's and Moody's in their highest short-term major rating
categories, or are unrated securities that are considered equivalent by the
Fund's investment manager. They also may include securities issued or guaranteed
as to principal or interest by the U.S. Treasury or any U.S. Government agency
or instrumentality. Additionally, shares of registered money market investment
companies that invest exclusively in these securities may be used.
The Fund reserves the right to invest up to 5% of its total assets in "second
tier" securities, which generally are corporate securities that, at the time of
purchase, are rated by such firms as Standard & Poor's and Moody's in their
second highest short-term major rating categories, or unrated securities that
are considered equivalent by the Fund's investment manager. Some corporate
securities purchased by the Fund may be restricted securities, that is, they may
be subject to limited resale rights.
The Fund may also invest in repurchase agreements collateralized by the
securities mentioned above.
U.S. TREASURY MONEY MARKET FUND
The Fund's fundamental investment objective is stability of principal and
current income consistent with stability of principal.
The Fund manages its portfolio subject to strict SEC guidelines, which are
designed so that the Fund may maintain a stable $1.00 per share price, although
there is no guarantee that it will do so. All of the Fund's investments are
expected to mature in the short-term (397 days or less), and the dollar-weighted
average portfolio maturity of the Fund may not exceed 90 days.
The Fund invests all of its assets in high-quality, short-term obligations
issued by the U.S. Treasury, which are guaranteed as to principal and interest
by the U.S. Government, and repurchase agreements collateralized by U.S.
Treasury securities, and shares of registered money market investment companies
that invest exclusively in these securities.
ADDITIONAL INFORMATION ABOUT THE FUNDS
- --------------------------------------------------------------------------------
INVESTMENT IN EXCHANGE-TRADED FUNDS. The Funds, except the Money Market Funds,
may each invest in exchange-traded funds, such as iShares(R) Trust and iShares
(R), Inc. ("iShares (R)").*
iShares(R) is a registered investment company unaffiliated with the Funds that
offers several series, each of which seeks to replicate the performance of a
stock market index or a group of stock markets in a particular geographic area.
Thus, investment in iShares(R) offers, among other things, an efficient means
to achieve diversification to a particular industry that would otherwise only be
possible through a series of transactions and numerous holdings. Although
similar diversification benefits may be achieved through an investment in
another investment company, exchange-traded funds generally offer greater
liquidity and lower expenses. Because an exchange-traded fund charges its own
fees and expenses, fund shareholders will indirectly bear these costs. The Funds
will also incur brokerage commissions and related charges when purchasing shares
in an exchange-traded fund in secondary market transactions. Unlike typical
investment company shares, which are valued once daily, shares in an
exchange-traded fund may be purchased or sold on a listed securities exchange
throughout the trading day at market prices that are generally close to net
asset value.
Because most exchange-traded funds are investment companies, investment in most
such funds would, absent exemptive relief, be limited under applicable federal
statutory provisions. Those provisions restrict a fund's investment in the
shares of another investment company to up to 5% of its assets (which may
represent no more than 3% of the securities of such other investment company)
and limit aggregate investments in all investment companies to 10% of assets,
unless otherwise permitted under the Investment Company Act of 1940 or the rules
thereunder. Upon meeting certain conditions, the Funds may invest their
respective assets in iShares(R) in excess of the statutory limit in reliance on
an exemptive order issued to that entity.
* iShares(R) is a registered trademark of Barclays Global Investors, N.A.
("BGI"). Neither BGI nor the iShares(R) Funds make any representations
regarding the advisability of investing in an iShares(R) fund.
101
FUND MANAGEMENT
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR AND SUBADVISORS
- --------------------------------------------------------------------------------
Fifth Third Asset Management, Inc., (the "Advisor" or "FTAM"), 38 Fountain
Square Plaza, Cincinnati, Ohio 45202, serves as investment advisor to all Funds.
The Advisor is a wholly-owned subsidiary of Fifth Third Bank. Fifth Third Bank
is a wholly-owned subsidiary of Fifth Third Financial Corporation, which is in
turn a wholly-owned subsidiary of Fifth Third Bancorp. FTAM provides
comprehensive advisory services for institutional and personal clients. FTAM
offers a broadly diversified asset management product line utilizing proprietary
mutual funds, commingled funds, and separate accounts. Through teams of
experienced and knowledgable investment professionals, advanced research
resources, and disciplined investment processes, the Advisor's goal is to
produce superior, long-term investment results and client satisfaction.
Morgan Stanley Investment Management Inc. ("MSIM"), 1221 Avenue of the Americas,
New York, New York 10020, serves as investment subadvisor to Fifth Third
International Equity Fund.
Fort Washington Investment Advisors, Inc. ("Fort Washington"), 420 East Fourth
Street, Cincinnati, OH 45202-4133, serves as investment subadvisor to Fifth
Third High Yield Bond Fund.
Subject to the supervision of the Funds' Board of Trustees, the Advisor manages
the Funds' assets, including buying and selling portfolio securities. The
Advisor employs an experienced staff of over 50 professional investment
analysts, portfolio managers and traders, and uses several computer-based
systems in conjunction with fundamental analysis to identify investment
opportunities. The Advisor also furnishes office space and certain
administrative services to the Funds.
As of September 30, 2006, Fifth Third Asset Management, Inc. had approximately
$21.0 billion of assets under management, including approximately $11.8 billion
of assets in the Fifth Third Funds. As of September 30, 2006, MSIM, together
with its affiliated institutional asset management companies, had approximately
$448.3 billion of assets under management, including approximately $295.5
billion of assets held by mutual funds (including sub-advisory relationships).
As of September 30, 2006, Fort Washington, together with its wholly-owned
subsidiaries, had approximately $31.1 billion of assets under management.
A discussion of the basis for the Board of Trustees' approval of the Funds'
investment advisory contracts is included in the shareholder reports for the
period during which the Board of Trustees approved such contracts.
The Advisor may appoint one or more subadvisors to manage all or a portion of
the assets of the Funds. On September 28, 2005, the Securities and Exchange
Commission (SEC) granted exemptive relief to the Funds and the Advisor to permit
the Advisor, subject to certain conditions, including the one-time prior
approval of the Funds' Board of Trustees and shareholders, to appoint and
replace subadvisors, enter into subadvisory agreements, and amend and terminate
subadvisory agreements on behalf of the Funds without shareholder approval. The
Advisor has received the one-time approval from the Funds' Board of Trustees and
shareholders. The exemptive order gives the Advisor the ability to change the
fee payable to a subadvisor or appoint a new subadvisor at a fee different than
that paid to the current subadvisor, which in turn may result in a different fee
retained by the Advisor.
102
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
103
SPECIALTY
DIVIDEND GROWTH STRATEGY STRATEGY
- ----------------------------------------------------------------------
RELATED PERFORMANCE OF THE INVESTMENT ADVISOR
The table below sets forth the performance data relating to the historical
performance of all fully discretionary, tax-exempt, fee-paying separate accounts
greater than $1 million managed by the Advisor and its predecessor, since the
dates indicated, that have substantially similar investment objectives,
policies, strategies and risks to the Fifth Third Dividend Growth Fund ("Fund").
The Advisor has offered institutional and high net worth clients a dividend
growth strategy for more than 16 years. THESE COMPOSITES ARE PROVIDED TO
ILLUSTRATE THE PAST PERFORMANCE OF THE ADVISOR IN MANAGING ACCOUNTS
SUBSTANTIALLY SIMILAR TO THE FUND. THESE COMPOSITES DO NOT REPRESENT THE
PERFORMANCE OF THE FUND. YOU SHOULD NOT CONSIDER THIS PERFORMANCE DATA AS AN
INDICATION OF FUTURE PERFORMANCE OF THE FUND OR OF THE ADVISOR.
The annual composite performance was computed by geometrically linking quarterly
composite rates of return for periods January 1, 1996 -- December 31, 2001 and
monthly composite rates of return thereafter. All returns reflect the deduction
of the highest annualized fee applied to the separate accounts (a 0.75%
all-inclusive investment management fee). In addition, all returns are net of
trading commissions and assume the reinvestment of dividends and capital gains.
The separately managed accounts include institutional separate accounts,
collective funds and common funds managed by the Advisor, but do not include
retail or personal accounts managed by affiliates of the Advisor. The separately
managed accounts were not subject to the same types of expenses to which the
Fund is subject, nor to the specific tax restrictions, investment limitations,
or diversification requirements imposed on the Fund by the Investment Company
Act. Consequently, the performance results for the separately managed accounts
could have been adversely affected if the separately managed accounts had been
regulated as investment companies under the federal securities laws.
The results presented at right may not necessarily equate with the return
experienced by any particular investor as a result of timing of investments and
redemptions. In addition, the effect of taxes on any investor will depend on
such person's tax status, and the results have not been reduced to reflect any
income tax which may have been payable.
The investment results presented at right are unaudited and are not intended to
predict or suggest the returns that might be experienced by the Fund or an
individual investor investing in the Fund. The investment results were not
calculated pursuant to the methodology established by the SEC that will be used
to calculate the Fund's performance results. Investors should also be aware that
the use of a methodology different from that used below to calculate performance
could result in different performance data.
DIVIDEND GROWTH COMPOSITE AND BENCHMARK PERFORMANCE COMPARISON 1
- --------------------------------------------------------------------------------
FIFTH THIRD DIVIDEND GROWTH COMPOSITE VS. S&P 500(R) INDEX
- --------------------------------------------------------------------------------
- -----------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1/1/96 -- 12/31/05
RETURN
Dividend Growth Composite 1,2 10.58%
S&P 500 Index 3 9.06%
- -----------------------------------------------
[LINE CHART]
Dividend Growth
Composite 1,2 S&P 500 Index 3
$ 10,000 $ 10,000
$ 10,406 $ 10,537
$ 10,752 $ 11,010
$ 11,381 $ 11,350
$ 12,132 $ 12,297
$ 12,438 $ 12,626
$ 14,842 $ 14,831
$ 15,752 $ 15,942
$ 17,493 $ 16,399
$ 19,751 $ 18,687
$ 19,655 $ 19,304
$ 18,401 $ 17,383
$ 21,590 $ 21,086
$ 21,457 $ 22,136
$ 22,342 $ 23,696
$ 20,608 $ 22,218
$ 22,256 $ 25,524
$ 21,092 $ 26,108
$ 22,745 $ 25,414
$ 24,246 $ 25,167
$ 26,130 $ 23,199
$ 23,194 $ 20,448
$ 23,824 $ 21,644
$ 22,243 $ 18,467
$ 23,767 $ 20,430
$ 24,728 $ 20,495
$ 22,440 $ 17,749
$ 20,400 $ 14,682
$ 21,374 $ 15,921
$ 20,515 $ 15,419
$ 22,280 $ 17,792
$ 22,701 $ 18,264
$ 24,920 $ 20,488
$ 25,129 $ 20,835
$ 26,151 $ 21,193
$ 26,042 $ 20,797
$ 27,695 $ 22,716
$ 27,014 $ 22,228
$ 26,585 $ 22,532
$ 26,465 $ 23,343
$ 27,332 $ 23,831
- ----------------------------------------------------------------------------------------------------
ANNUAL RETURNS -- DIVIDEND GROWTH COMPOSITE VS. S&P 500(R) INDEX
- ----------------------------------------------------------------------------------------------------
DIVIDEND 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
GROWTH ---------------------------------------------------------------------------------
COMPOSITE 1,2 21.32% 44.19% 23.42% 3.08% 17.41% -9.04% -10.07% 16.59% 11.14% -1.31%
- ----------------------------------------------------------------------------------------------------
S&P (500)(R)
INDEX 3 22.96% 33.36% 28.58% 21.04% -9.11% -11.88% -22.10% 28.68% 10.88% 4.91%
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 4 September 2006 -------- AS OF 12/31/05 ------
Year-to-Date 1 Year 5 Years 10 Years
- --------------------------------------------------------------------------------
DIVIDEND GROWTH COMPOSITE 1,2 8.37% -1.31% 0.90% 10.58%
S&P (500)(R) INDEX 3 8.53% 4.91% 0.54% 9.06%
1 These composites are provided to illustrate the past performance of the
Advisor in managing accounts substantially similar to the Dividend Growth
Fund. These composites do not represent the performance of the Dividend
Growth Fund. You should not consider this performance data as an
indication of the future performance of the Dividend Growth Fund or the
Advisor.
2 Performance numbers reflect the deduction of the highest annualized fee
applied to the separate accounts (a 0.75% all-inclusive investment
management fee). As a result, the performance of the Dividend Growth
Composite presented herein will not match the performance of the composite
in instances where actual fees are applied.
3 The S&P 500 Index is a broad-based measurement of changes in stock-market
conditions based on the average performance of 500 widely held common
stocks.
4 Annualized total returns from January 1, 1996 to December 31, 2005.
Returns of less than one year are not annualized.
104
SPECIALTY
DIVIDEND GROWTH STRATEGY STRATEGY
- ----------------------------------------------------------------------
THE FIFTH THIRD DIVIDEND GROWTH STRATEGY
o The portfolio management team focuses on five key areas as they implement
the Dividend Growth Strategy for clients:
o Quantitative screens are conducted to identify high-quality
companies that meet market capitalization targets
o Dividend and Earnings Rankings are evaluated and the prospect for a
continuation of superior earnings and dividend growth is assessed
for each company
o An extensive analysis of company fundamentals and historical
valuations is completed
o Risk factors of the portfolio are evaluated and controls are
maintained
o A consistent sell strategy is implemented
o A disciplined investment process seeks to provide investors with capital
appreciation, less portfolio volatility than the stock market as a whole,
and regular income for those investors seeking income
- --------------------------------------------------------------------------------
KEY AREAS OF FOCUS
- --------------------------------------------------------------------------------
o QUANTITATIVE SCREENS
Produces a list of stocks that have specific market capitalization
requirements and meet the desired financial strength criteria of fund
managers
o DIVIDEND AND EARNINGS RANKINGS
FTAM's portfolio management team ranks each company based on the quality
of the earnings and dividends, and prospects for increasing dividends
o FUNDAMENTAL ANALYSIS
Portfolio managers evaluate the business model of each company, the
quality of management, competitive advantages, historical profitability
and securities valuation, and prospects for the future
o RISK CONTROLS
Individual portfolio positions and sector allocations are closely
monitored to control risk in the portfolio
o SELL DISCIPLINE
A highly disciplined sell strategy typically results in the sale of the
stock when the company experiences a deceleration in earnings or dividend
growth, or a change in its dividend policy
[GRAPHIC OMITTED]
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
Indexes are unmanaged and investors cannot invest directly in an index. Index
returns do not reflect any fees, expenses or sales charges associated with
mutual fund investing.
Stocks tend to be more volatile than other types of investments, but generally
provide greater return potential.
105
HIGH YIELD
BOND
HIGH YIELD BOND STRATEGY STRATEGY
- --------------------------------------------------------------------
RELATED PERFORMANCE OF THE INVESTMENT SUBADVISOR
The table below sets forth data relating to the historical performance of all
fee-paying, fully discretionary portfolios managed by Fort Washington
Investments Advisors, Inc. ("Fort Washington") with a minimum of $20 million
under Fort Washington's management that have investment objectives, policies,
strategies and risks substantially similar to those of the High Yield Bond Fund.
The portfolios include private accounts, Fort Washington High Yield Investors
LLC, a limited liability company, Touchstone Investment Trust High Yield Fund, a
mutual fund, and Touchstone Variable Series Trust High Yield Fund, a variable
annuity mutual fund. THE DATA IS PROVIDED TO ILLUSTRATE THE PAST PERFORMANCE OF
FORT WASHINGTON IN MANAGING SUBSTANTIALLY SIMILAR PORTFOLIOS AS MEASURED AGAINST
A SPECIFIED MARKET INDEX AND DOES NOT REPRESENT THE PERFORMANCE OF THE HIGH
YIELD BOND FUND. YOU SHOULD NOT CONSIDER THIS PERFORMANCE DATA AS AN INDICATION
OF FUTURE PERFORMANCE OF THE HIGH YIELD BOND FUND OR OF FORT WASHINGTON.
Portfolios in this composite include cash, cash equivalents, investment
securities, interest and dividends. Investment performance of segments of
balanced portfolios, which are separately managed, are also included in the
composite. Cash is maintained, within each separately managed account segment,
in accordance with Fort Washington's asset allocation ratio. The U.S. dollar is
the base currency. Composite returns are reported net of management fees and
transaction costs and include realized and unrealized gains and losses as well
as the reinvestment of all dividend and interest income. Trade date accounting
is used when calculating performance. Individual portfolio returns are
calculated on a daily valuation basis. Prior to January 1, 1997, individual
portfolio returns were calculated on a monthly basis using a time-weighted
return method. There is no use of leverage or derivatives. The private accounts
and limited liability company included in the Subadvisor's composite are not
subject to the same types of expenses to which the High Yield Bond Fund is
subject nor to the diversification requirements, specific tax restrictions and
investment limitations imposed on the High Yield Bond Fund by the 1940 Act or
Subchapter M of the Internal Revenue Code. Consequently, the performance results
for the Subadvisor's composite could have been adversely affected if the private
accounts and limited liability company had been regulated as investment
companies under the federal securities laws. A fee of 0.55% was applied to the
private accounts and limited liability company in the composite. This represents
the highest fee paid at the account level by the private accounts and limited
liability company included in the composite. A fee of 1.05% was applied to the
mutual fund included in the composite. This represents the actual fee, after
applicable fee waivers and/or reimbursements, applied to Class A shares of the
mutual fund included in the composite. A fee of 0.80% was applied to the
variable annuity mutual fund included in the composite. This represents the
actual fee, after applicable fee waivers and/or reimbursements, applied to the
variable annuity mutual fund included in the composite, but does not reflect the
effect of any fees or other expenses of any variable annuity or variable life
insurance product. Composite performance results would be lower if fee waivers
and/or reimbursements were not applied. Composite performance results would be
lower if the expenses to which the High Yield Bond Fund is subject were applied.
The investment results of the private accounts and limited liability company
were not calculated pursuant to the methodology established by the SEC that will
be used below to calculate performance results of the High Yield Bond Fund. The
use of a methodology different from that used to calculate performance could
result in different performance data. All information set forth in the tables
relies on data supplied by the Subadvisor or from statistical services, reports
or other sources believed by the Subadvisor to be reliable. The benchmark for
this composite is the Merrill Lynch High Yield Master Index. This benchmark
return includes interest income, but as an unmanaged fixed-income index, it does
not include transaction fees (brokerage commissions), and no direct comparison
is possible. This benchmark is a broad-based measure of the performance of the
non-investment grade U.S. domestic bond market. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
FORT WASHINGTON INVESTMENT ADVISORS, INC. HIGH YIELD BOND COMPOSITE
(NET OF FEES) AND BENCHMARK PERFORMANCE COMPARISON 1
- --------------------------------------------------------------------------------
HIGH YIELD BOND COMPOSITE VS. MERRILL LYNCH HIGH YIELD MASTER
- --------------------------------------------------------------------------------
- -----------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1/1/96 -- 12/31/05
RETURN
High Yield Bond Composite 7.17%
Merrill Lynch High Yield Master 6.80%
- -----------------------------------------------
[LINE CHART]
High Yield Merrill Lynch
Bond Composite High Yield Master
$ 10,000 $ 10,000
$ 10,149 $ 10,146
$ 10,162 $ 10,285
$ 10,548 $ 10,686
$ 10,911 $ 11,106
$ 11,023 $ 11,222
$ 11,486 $ 11,755
$ 11,907 $ 12,215
$ 12,123 $ 12,530
$ 12,478 $ 12,880
$ 12,628 $ 13,096
$ 12,378 $ 12,627
$ 12,634 $ 12,990
$ 12,973 $ 13,130
$ 12,965 $ 13,218
$ 12,792 $ 13,053
$ 12,889 $ 13,194
$ 12,651 $ 12,956
$ 12,898 $ 13,038
$ 13,105 $ 13,215
$ 12,414 $ 12,694
$ 13,240 $ 13,483
$ 13,358 $ 13,312
$ 13,113 $ 12,774
$ 13,689 $ 13,481
$ 14,114 $ 13,746
$ 13,986 $ 12,902
$ 13,442 $ 12,494
$ 14,091 $ 13,327
$ 14,881 $ 14,247
$ 16,294 $ 15,625
$ 16,718 $ 16,020
$ 17,527 $ 16,956
$ 17,995 $ 17,334
$ 17,934 $ 17,181
$ 18,730 $ 17,978
$ 19,311 $ 18,780
$ 19,084 $ 18,512
$ 19,569 $ 19,010
$ 19,792 $ 19,183
$ 19,980 $ 19,314
- ----------------------------------------------------------------------------------------------------
ANNUAL RETURNS -- HIGH YIELD BOND COMPOSITE VS. MERRILL LYNCH HIGH YIELD MASTER
- ----------------------------------------------------------------------------------------------------
HIGH YIELD 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
BOND ---------------------------------------------------------------------------------
COMPOSITE 1,2 9.11 11.11 4.21 2.02 -3.68 10.27 2.94 24.38 10.18 3.46
- ----------------------------------------------------------------------------------------------------
MERRILL LYNCH
HIGH YIELD
MASTER 3 11.06 12.82 3.66 1.57 -3.79 6.20 -1.15 27.23 10.76 2.83
- ----------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 4 YTD ---------- AS OF 12/31/05 ----------
9/30/06 1 YEAR 3 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
HIGH YIELD BOND COMPOSITE (NET OF FEES) 1,2 3.86% 3.46 9.985 7.167
- ----------------------------------------------------------------------------------------------------
MERRILL LYNCH HIGH YIELD MASTER 3 7.17% 2.83 8.75 6.80
- ----------------------------------------------------------------------------------------------------
1 The composite is provided to illustrate past performance of Fort
Washington in managing private accounts, a limited liability company, a
mutual fund, and a variable annuity mutual fund substantially similar to
the High Yield Bond Fund. The composite does not represent the performance
of the High Yield Bond Fund. You should not consider this performance data
as an indication of the future performance of the High Yield Bond Fund or
Fort Washington.
2 Performance numbers reflect the deduction of the highest annualized fee
applied to the private accounts and limited liability company (a 0.55 %
all-inclusive investment management fee), deduction of a 1.05% fee applied
to the mutual fund (representing the mutual fund's total operating
expenses, after waivers and/or reimbursements), and deduction of a 0.80%
fee applied to the variable annuity mutual fund (representing the variable
annuity mutual fund's total operating expenses, after waivers and/or
reimbursements, but not including the effect of any fees or other expenses
of any variable annuity or variable life insurance product). As a result,
the performance of the High Yield Bond Fund Composite presented herein
will not match the performance of the composite in instances where actual
fees are applied.
3 The Merrill Lynch High Yield Master Index is a broad-based measure of the
performance of the non-investment grade U.S. domestic bond market.
4 Annualized total returns from January 1, 1996 to December 31, 2005.
Returns of less than one year are not annualized.
106
HIGH YIELD
BOND
HIGH YIELD BOND STRATEGY STRATEGY
- ---------------------------------------------------------------------
THE SUBADVISOR'S HIGH YIELD BOND STRATEGY
o The Subadvisor's portfolio management team focuses on five key areas as
they implement the High Yield Bond Strategy for clients
1. Alignment of Risk and Return is used to form the philosophy and
process to select the credit types that have had the best historical
risk-adjusted return
2. A Full Market Cycle Orientation is designed to outperform the
benchmark over the long term. Excluding the lowest rated issues has
historically reduced the volatility of the portfolio, while not
inhibiting performance
3. Industry Bias is used to overweight industries with favorable
characteristics and underweight those that are less favorable
4. Issue Selection identifies bonds that are backed by companies with a
strong management, prudent and flexible capital structure and an
ability to generate free cash flow
5. A consistent and diligent sell strategy is implemented
o A disciplined investment process seeks to achieve a high level of income
as its main goal. Capital appreciation is a secondary consideration
- --------------------------------------------------------------------------------
KEY AREAS OF FOCUS
- --------------------------------------------------------------------------------
o ALIGNMENT OF RISK AND RETURN
Assesses the risk-adjusted return for each credit level to determine which
level has the best risk-return relationship
o FULL MARKET CYCLE ORIENTATION
Seeks a portfolio of securities that has the potential to outperform over
an entire market cycle, including strong markets, moderate markets, and
weak markets. The goal is to manage volatility and provide competitive
returns over the long term
o INDUSTRY BIAS ANALYSIS
Identifies and overweights industries that have a history of stable and
predictable cash flow, consistent product demand, stable pricing and
conservative accounting practices. Typically underweights those with more
speculative business models, potential for aggressive accounting practices
and cyclical tendencies
o INDIVIDUAL SECURITY SELECTION
Evaluates company management, capital structure, liquidity and income
statements to find the securities that managers believe provide the best
risk-return relationship
o SELL DISCIPLINE
Considers selling securities when:
o Companies become cash users instead of cash generators
o Access to capital becomes questionable
o Management adversely alters strategy
o Risk-return relationship becomes inappropriate
[GRAPHIC OMITTED]
107
HIGH YIELD
BOND
HIGH YIELD BOND STRATEGY STRATEGY
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO BUILDING PROCESS
o The five key areas of focus lead to a disciplined portfolio building
process
o The process narrows the universe of available securities into a group of
issues with attractive risk-return relationships
o Initial "top-down" steps manage risk while final "bottom-up" issue
selection step provides the potential for outperforming peers and the
benchmark
o Rigorous bottom-up security selection is performed by the Subadvisor's
team of credit analysts and is the core competency of the process
o Diversification is achieved with portfolios generally holding 90 to 120
securities across multiple industries. The portfolios have an overall
emphasis on higher rated securities, which are continuously monitored for
any signs of deterioration
o Objective is a return profile that outperforms over a full market cycle
and has less volatility
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INDUSTRY BIAS ANALYSIS: OVERWEIGHT OR UNDERWEIGHT PARTICULAR INDUSTRIES
o Identify those sectors that are considered "stable" - predictable cash
flows, stable pricing, mature industries, consistent product demand
o Underweight those sectors that have more speculative characteristics -
cyclical in nature, aggressive accounting practices, excess volatility
GOAL: A UNIVERSE OF BELOW-INVESTMENT GRADE SECURITIES IN "STABLE" INDUSTRIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO RISK MANAGEMENT ANALYSIS
o Evaluate Macroeconomic and Regulatory Outlook
o Analyze the macroeconomic and legislative environment, including the
outlook for GDP growth, consumer confidence, inflation and
anticipated Fed activity
o Determine if any factors may have an impact on the fixed-income
market or specific industries
o Eliminate unattractive security types
o Select issues that meet size and rating criteria
o Avoid triple-C rated securities because of their inappropriate
risk-return trade-off
o Avoid deferred pay securities, as they tend to be issued by
companies that do not generate cash flow
GOAL: A UNIVERSE OF SECURITIES FROM THE HIGHER QUALITY, MORE STABLE SEGMENTS OF
THE HIGH YIELD MARKET WHICH HAVE OFFERED THE BEST RETURN FOR THE LEVEL OF RISK
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ISSUE SELECTION: RIGOROUS BOTTOM-UP CREDIT SELECTION PROCESS
o Identify key attributes that contribute to a high risk-return relationship
o Solid market position and stable to improving trends
o Strong asset coverage that can reduce losses in the event of a
deteriorating credit profile
o Ability to generate cash flow to reduce debt for de-leveraging
o Exceptional and accessible management.
o The fixed-income credit analysts research leverage ratios, capital
structure, maturity schedules, liquidity and covenant packages
o Utilize external research, including Wall Street research reports, annual
reports, 10Ks, and 10Qs
GOAL: A PORTFOLIO OF HIGHER RATED, HIGH YIELD SECURITIES THAT IS BELIEVED TO
HAVE A FAVORABLE RISK RETURN PROFILE AND HAS THE POTENTIAL TO OUTPERFORM OVER A
FULL MARKET CYCLE
- --------------------------------------------------------------------------------
108
FUND MANAGEMENT
- --------------------------------------------------------------------------------
The management and subadvisory fees, after fee waivers, paid by the Funds for
the fiscal year ended July 31, 2006 are as follows:
AS A PERCENTAGE OF
AVERAGE NET ASSETS
- --------------------------------------------------------------------------------
FIFTH THIRD SMALL CAP GROWTH FUND 0.70%
- --------------------------------------------------------------------------------
FIFTH THIRD MID CAP GROWTH FUND 0.80%
- --------------------------------------------------------------------------------
FIFTH THIRD QUALITY GROWTH FUND 0.80%
- --------------------------------------------------------------------------------
FIFTH THIRD LARGE CAP CORE FUND 0.70%
- --------------------------------------------------------------------------------
FIFTH THIRD EQUITY INDEX FUND 0.10%
- --------------------------------------------------------------------------------
FIFTH THIRD BALANCED FUND 0.60%
- --------------------------------------------------------------------------------
FIFTH THIRD MICRO CAP VALUE FUND 1.00%
- --------------------------------------------------------------------------------
FIFTH THIRD SMALL CAP VALUE FUND 0.90%
- --------------------------------------------------------------------------------
FIFTH THIRD MULTI CAP VALUE FUND 1.00%
- --------------------------------------------------------------------------------
FIFTH THIRD DISCIPLINED LARGE CAP VALUE FUND 0.80%
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM 0.03%
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM 0.03%
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATE FUND SM 0.03%
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM 0.03%
- --------------------------------------------------------------------------------
FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM 0.03%
- --------------------------------------------------------------------------------
FIFTH THIRD STRATEGIC INCOME FUND 1.00%
- --------------------------------------------------------------------------------
FIFTH THIRD DIVIDEND GROWTH FUND 0.64%
- --------------------------------------------------------------------------------
FIFTH THIRD TECHNOLOGY FUND 1.00%
- --------------------------------------------------------------------------------
FIFTH THIRD INTERNATIONAL EQUITY FUND 1 1.00%
- --------------------------------------------------------------------------------
FIFTH THIRD HIGH YIELD BOND FUND 1,2 0.70%
- --------------------------------------------------------------------------------
FIFTH THIRD BOND FUND 0.53%
- --------------------------------------------------------------------------------
FIFTH THIRD INTERMEDIATE BOND FUND 0.51%
- --------------------------------------------------------------------------------
FIFTH THIRD SHORT TERM BOND FUND 0.43%
- --------------------------------------------------------------------------------
FIFTH THIRD U.S. GOVERNMENT BOND FUND 0.41%
- --------------------------------------------------------------------------------
FIFTH THIRD MUNICIPAL BOND FUND 0.44%
- --------------------------------------------------------------------------------
FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND 0.40%
- --------------------------------------------------------------------------------
FIFTH THIRD OHIO MUNICIPAL BOND FUND 0.55%
- --------------------------------------------------------------------------------
FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND 0.45%
- --------------------------------------------------------------------------------
FIFTH THIRD PRIME MONEY MARKET FUND 0.40%
- --------------------------------------------------------------------------------
FIFTH THIRD GOVERNMENT MONEY MARKET FUND 0.40%
- --------------------------------------------------------------------------------
FIFTH THIRD MICHIGAN MUNICIPAL MONEY MARKET FUND 0.40%
- --------------------------------------------------------------------------------
FIFTH THIRD MUNICIPAL MONEY MARKET FUND 0.13%
- --------------------------------------------------------------------------------
1 The Advisor paid a portion of this fee to the Fund's subadvisor.
2 As of the date of this prospectus, the High Yield Bond Fund has not
operated for a full fiscal year, but pays an annual management fee of
0.70% of its average net assets, a portion of which is paid to the Fund's
subadvisor.
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PORTFOLIO MANAGERS
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FIFTH THIRD ASSET MANAGEMENT, INC.
JOHN E. AUGUSTINE has been portfolio manager for the FIFTH THIRD LIFEMODEL FUNDS
SM since their inception in August 2002, and is the Chief Investment Strategist
for Fifth Third Asset Management, Inc. He joined Fifth Third Bank in 1998 as a
Senior Portfolio Manager for both equity and fixed income clients. Previously,
he spent four years with Star Bank as a portfolio manager, three years with
Heritage Trust & Asset Management, and two years with IDS Financial Services. He
is a member of the Fifth Third Asset Management Investment Policy Committee,
Investment Strategy Team, Alternative Investments Team, and has over 15 years of
portfolio management experience. He holds the professional designation of
Chartered Financial Analyst. Mr. Augustine is a graduate of The Ohio State
University and the Midwest Bankers Association Trust School. He is a former
president and board member for the Dayton Society of Financial Analysts, is on
the University of Dayton - Flyer Investment Advisory Board, and is a part-time
business professor in the graduate school at the University of Dayton.
SCOTT A. BILLEADEAU has been the portfolio manager of the FIFTH THIRD MID CAP
GROWTH FUND since June 2003, of the FIFTH THIRD SMALL CAP GROWTH FUND since
February 2005, and of the FIFTH THIRD TECHNOLOGY FUND since November 2003. A
Chartered Financial Analyst, Mr. Billeadeau graduated from Princeton University
with a degree in Economics. He started his career at IDS/American Express (now
Ameriprise) in 1985 as a statistical project analyst. In 1991, he joined Pacific
Century Advisers, a subsidiary of Security Pacific Bank (which was subsequently
acquired by Bank of America) as a portfolio manager and analyst. In 1994, he
assumed management responsibilities for all small- and mid-cap assets for Bank
of America. Mr. Billeadeau joined Nation's Bank's subsidiary, Tradestreet
Investment Associates, Inc., in 1997, where he was the Director and Senior
Portfolio Manager responsible for the mid-cap and small-cap growth strategies.
Mr. Billeadeau joined Investment Advisers, Inc. in July of 1999 and became a
principal of Paladin Investment Associates, LLC upon its launch on December 1,
2000. At Paladin, Mr. Billeadeau was a Senior Portfolio Manager of small,
small-to-mid cap and mid-cap growth strategies. Additionally, in 2000, Scott was
elected to the Board of Directors of FactSet Research Systems, a NYSE listed
company, where he serves as Chairman of the audit committee. Mr. Billeadeau has
20 years of investment experience.
JOHN L. CASSADY III has been the portfolio manager of the FIFTH THIRD BOND FUND
and the FIFTH THIRD INTERMEDIATE BOND FUND since November 1999, of the FIFTH
THIRD U.S. GOVERNMENT BOND FUND since October 2001, and of the FIFTH THIRD
BALANCED FUND (fixed income portion) since August 2002. Mr. Cassady is a Senior
Portfolio Manager - Taxable Fixed Income for Fifth Third Asset Management, Inc.
Prior to joining Fifth Third Asset Management, Inc.'s predecessor, Lyon Street
Asset Management, in 1999, Mr. Cassady spent eight years as a portfolio manager
for APAM, Inc. Mr. Cassady earned his Chartered Financial Analyst designation in
1999 and has over eighteen years of investment experience, including thirteen
years of fixed income portfolio management experience. He earned his BS in
Industrial Management from the Georgia Institute of Technology.
AMY DENN has been a portfolio manager for the FIFTH THIRD BALANCED FUND (equity
portion) since January 2006 and for the FIFTH THIRD QUALITY GROWTH FUND since
November 2006. Ms. Denn joined Fifth Third Asset Management in March 2003 as
Portfolio Manager of Core Strategies. Prior to joining FTAM, she spent thirteen
years with Minneapolis-based Investment Advisers, Inc., and then over three
years as a portfolio manager with Paladin Investment Associates. Ms. Denn
graduated from Minnesota State University, Mankato in 1987 with a BS degree in
Business Administration, majoring in Accounting and Finance. Ms. Denn has nine
years of investment experience.
JON FISHER has been a portfolio manager for the FIFTH THIRD BALANCED FUND
(equity portion) since January 2006. Mr. Fisher is a Portfolio Manager of Core
Strategies. Prior to joining FTAM in 2000, he worked for seven years at PNC as a
Portfolio Manager and Equity Analyst and subsequently worked for two years at
Dain Bosworth as an Equity Analyst. In January 2000, Mr. Fisher joined FTAM as a
healthcare analyst supporting their growth products. In 2002, he was promoted to
Director of Research and in 2003 was named co-Portfolio Manager of the Small Cap
Growth Strategy. In January 2005, Mr. Fisher became Portfolio Manager of FTAM's
Active Core and Active Growth products. Mr. Fisher has taught courses in
Economics and Basic Investments for the Cincinnati Chapter of the American
Institute of Bankers, has served as President for the Cincinnati Society of
Financial Analysts, and has over 16 years of investment experience. Mr. Fisher
graduated from the University of Iowa with a BS degree in Business
Administration, majoring in Finance and earned his MBA from the University of
Chicago. He earned the Chartered Financial Analyst designation in 1996.
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FUND MANAGEMENT
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STEVEN E. FOLKER has been the portfolio manager of the FIFTH THIRD QUALITY
GROWTH FUND since February 1993, and the portfolio manager of the FIFTH THIRD
LIFEMODEL FUNDS SM since August 2006. Mr. Folker is the Managing Director of
Growth Strategies for Fifth Third Asset Management, Inc. and is a Vice President
of Fifth Third Bank. He has earned his Chartered Financial Analyst designation
and has over twenty-five years of investment experience. He earned a BBA in
Finance & Accounting and an M.S. - Business in Finance, Investments & Banking
from the University of Wisconsin.
MARTIN E. HARGRAVE has been the portfolio manager of the FIFTH THIRD MID CAP
GROWTH FUND since February 2005, and has been the portfolio manager of the FIFTH
THIRD SMALL CAP GROWTH FUND since August 2006. A Chartered Financial Analyst,
Mr. Hargrave graduated from the University of Southern California with a
Bachelor of Science degree, followed by a Master's degree in Finance from the
Anderson School at the University of California, Los Angeles. In 1991, Mr.
Hargrave joined Sunkist Growers, Inc. where he was responsible for managing the
employee benefits investments, banking relationships and cash management
operations. Mr. Hargrave joined Investment Advisers, Inc. in 1996 as an
institutional client service representative and in August 2000 he joined their
small/mid cap team as a portfolio manager. Mr. Hargrave joined Fifth Third in
2003 as a Portfolio Manager of Small, Small-to-Mid, and Mid Cap Growth
Strategies. Mr. Hargrave has 15 years of investment experience.
JOHN P. HOETING has been the portfolio manager of the Fifth Third taxable money
market funds since February 2000 and the portfolio manager of the FIFTH THIRD
SHORT TERM BOND FUND since April 2004. Prior to joining Fifth Third Asset
Management, Inc. in February 2000, he spent nearly 3 years as a research analyst
and money market portfolio manager with Ft. Washington Investment Advisors and
its predecessor, Countrywide Investments. Mr. Hoeting has over fourteen years of
experience as a research analyst and portfolio manager. Mr. Hoeting earned a BS
in Finance from the University of Dayton and earned the Chartered Financial
Analyst designation in 1997.
ERIC J. HOLMES has been the portfolio manager for the FIFTH THIRD MICRO CAP
VALUE FUND since April 2005. Mr. Holmes is the Director of Micro Cap Strategies
for Fifth Third Asset Management, Inc. Prior to joining Fifth Third in February
2003, Mr. Holmes accumulated over eight years of experience as an equity analyst
for Manning & Napier Advisors and Victory Capital Management. Mr. Holmes
received his undergraduate degree in Economics from the State University of New
York at Geneseo and his MBA in Finance from Rochester Institute of Technology.
He earned the Chartered Financial Analyst designation in 1998.
JAMES R. KIRK has been a portfolio manager of the FIFTH THIRD DISCIPLINED LARGE
CAP VALUE FUND since August 2002 and of the FIFTH THIRD MULTI CAP VALUE FUND
since April 2005. He is managing Director of Value Strategies for Fifth Third
Asset Management, Inc. Prior to joining Fifth Third, he spent almost three years
as the chief investment strategist and manager of a value equity fund for
National City Investment Management Co., and then four years as the Chief
Investment Officer for National City Bank's Private Investment Advisors Group.
Prior to his association with National City, Mr. Kirk was the President and
Chief Investment Officer of Society Asset Management, a subsidiary of KeyCorp.
Mr. Kirk earned a BA in Economics and an MBA from Case Western Reserve
University and has also earned his Chartered Financial Analyst designation. He
has accumulated over thirty-four years of investment experience in the
capacities of portfolio manager, director of research, and chief investment
officer. He is a member of the board of trustees of the Fairview/Lutheran
Hospital Foundation and is a past president of the CFA Society of Cleveland.
PETER M. KLEIN has been the portfolio manager of the FIFTH THIRD MULTI CAP VALUE
FUND since January 2003. Mr. Klein is a Senior Portfolio Manager of Value
Strategies for Fifth Third Asset Management, Inc. He spent seven years as an
individual and institutional portfolio manager and an equity analyst with
Gelfand/Maxus Asset Management, which, prior to its merger with Fifth Third
Asset Management, Inc., was a subsidiary of Maxus Investment Group. He has over
twenty-three years of experience managing personal, corporate, endowment and
Taft-Hartley portfolios. Mr. Klein received his undergraduate degree in
Philosophy magna cum laude from John Carroll University and his MBA in Finance
from Cleveland State University. He holds the Chartered Financial Analyst
designation as well as a Series-7 General Securities Representative license. In
addition, he has served as President and Program Chairman for the CFA Society of
Cleveland.
111
FUND MANAGEMENT
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MARK KOENIG has been the portfolio manager of the FIFTH THIRD LARGE CAP CORE
FUND and the FIFTH THIRD EQUITY INDEX FUND since February 2005. He is the
Managing Director of Quantitative Strategies for Fifth Third Asset Management,
Inc. He has nine years of investment experience and served as the Director of
Quantitative Analysis at the National City Investment Management Co. from 1999 -
2004. In this capacity he was responsible for the management of the quantitative
equity products and the development of decision support models for National
City's fundamental equity teams. From 1995 - 1998, Mr. Koenig was a quantitative
analyst with National City Bank, where he was responsible for developing risk
analytics to support the bank's fixed-income desk. Previously, he spent ten
years as a research engineer at Draper Laboratory, where he specialized in
developing guidance, navigation, and control algorithms for spacecraft,
aircraft, and underwater vehicles. Mr. Koenig has an M.S. in Computational
Finance from Carnegie Mellon University, an M.S. in Electrical Engineering from
the University of Arizona, and a B.S. in Aerospace Engineering from the
University of Cincinnati. He is a member of the American Finance Association. He
earned the Chartered Financial Analyst designation in 2003.
JOSEPH W. KREMER has been the portfolio manager of the FIFTH THIRD SMALL CAP
VALUE FUND since November 2005, and is the Director of Small Cap Value
Strategies. Mr. Kremer joined Fifth Third Asset Management in November 2005 as
Senior Portfolio Manager of Small Cap Value Strategies. Mr. Kremer previously
spent 3 1/2 years with Evergreen Asset Management, a subsidiary of Wachovia
Bank, where he was a Regional Investment Manager. Prior to that, he worked for
National City for 2 1/2 years, where he was a Senior Investment Officer. He
has also worked for M&I Investment Management Corporation, a subsidiary of
Marshall & Ilsley Corp. and has run his own investment management firm. Before
beginning his investment career, Mr. Kremer was an assistant professor of
finance at the University of Notre Dame, where he taught portfolio management
and investment theory courses for six years and contributed to academic journals
including the JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS and ADVANCES IN
FUTURES AND OPTIONS RESEARCH. He has a Ph.D. in Business Administration with a
major in Finance from the University of South Carolina, where his dissertation
topic was the pricing of corporate warrants. His other degrees include an M.B.A.
from the University of Wisconsin, a B.S. in Accounting and a B.A. in Economics,
both CUM LAUDE, from the University of Delaware. Mr. Kremer earned the Charter
Financial Analyst designation and is a Certified Financial Planner.
J. JEFFREY KRUMPELMAN has been the portfolio manager for the FIFTH THIRD
DIVIDEND GROWTH FUND and the FIFTH THIRD STRATEGIC INCOME FUND since September
2005. He joined Fifth Third Asset Management, Inc. in August 2005 as the
Director of Quality Core Strategies. Previously, Mr. Krumpelman spent six years
with INVESCO National Asset Management, where he was a Managing Director and
Portfolio Manager and managed three products with over $10 billion in assets.
Prior to that, he was a Senior Portfolio Manager for First Union National Bank,
where he managed over $300 million in private assets. Mr. Krumpelman graduated
from DePauw University with a B.A. in Economics and holds an M.B.A. in Finance
from Northwestern University. He earned the Chartered Financial Analyst
designation in 1993 and has accumulated over 14 years of investment management
experience.
PETER KWIATKOWSKI has been the portfolio manager of the FIFTH THIRD STRATEGIC
INCOME FUND since February 2005 and portfolio manager of the FIFTH THIRD
DIVIDEND GROWTH FUND since August 2005. He is currently a Portfolio Manager of
Income Strategies of Fifth Third Asset Management, Inc. He joined Fifth Third
Bank's Treasury Group in August 2001 with responsibility for structured
finance/securitizations, investments, balance sheet management, and economic
analysis. He moved in May 2003 to Fifth Third's Income Strategies Group, where
he is responsible for strategic income, dividend growth, fixed income, and
alternative income/quantitative strategies. He spent over two years beginning in
April 1999 with Pacific Investment Management Company LLC (PIMCO) in various
functions including as a Portfolio Analyst supporting the emerging markets and
mortgage strategies. Mr. Kwiatkowski's previous experience includes seven years
in real estate. He graduated summa cum laude from California State University at
Long Beach with a B. S. in Finance, Real Estate and Law and earned the Chartered
Financial Analyst designation in 2002.
DAVID R. LUEBKE has been the portfolio manager of the FIFTH THIRD MID CAP GROWTH
FUND and the FIFTH THIRD SMALL CAP GROWTH FUND since August 2006. For the four
years prior to joining Fifth Third, Mr. Luebke was Vice President and Senior
Equity Analyst for Harbor Capital Management and then Fortis Investments, after
its acquisition of Harbor, where he was responsible for covering the technology
sector for small, mid and large cap stocks. Prior to joining Fortis, Mr. Luebke
was Portfolio Manager and Equity Analyst at First American Asset Management and
Piper Capital Management. Mr. Luebke graduated with honors (recipient of the
Wall Street Journal Achievement Award) from the University of Minnesota with a
Bachelor of Science degree in Business Administration. He also has an MBA in
Finance from the Carlson School of Management. A Chartered Financial Analyst,
Mr. Luebke has 9 years of investment experience.
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FUND MANAGEMENT
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MICHAEL J. MARTIN has been portfolio manager for the FIFTH THIRD MUNICIPAL BOND
FUND and the FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND since November 1997,
of the FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND since January 1995, and of the
FIFTH THIRD OHIO MUNICIPAL BOND FUND since October 2001. Mr. Martin is the
Managing Director of Tax Exempt Fixed Income for Fifth Third Asset Management,
Inc. and has over twelve years of experience as a portfolio manager with FTAM
and its predecessor, Lyon Street Asset Management Company. Mr. Martin earned his
Chartered Financial Analyst designation in 1993. He earned his BS in Geological
Engineering, with honors, from Michigan Technological University in 1983 and his
MBA from Michigan State University in 1989.
MARY JANE MATTS has been a portfolio manager of the FIFTH THIRD DISCIPLINED
LARGE CAP VALUE FUND since July 2005. Prior to joining Fifth Third Asset
Management, Inc. in July 2005, she spent 10 years in various functions with
National City Bank. Most recently, from 2000 to 2005, she was Director of
Research for the Wealth Management Group, which includes the Private Client
Group and NatCity Investments, a brokerage firm. From 2001-2002, Ms. Matts
served as the interim Chief Investment Officer for the Wealth Management Group.
In 2003, Ms. Matts assisted in the transition of the management of the Armada
value funds, while continuing to function as the Director of Research for the
Wealth Management Group. Prior to that, Ms. Matts managed the Value Team on the
institutional side. Before joining National City in 1995, Ms. Matts was the
Director of Research at Society Asset Management, now known as Victory Capital
Management. She has 19 years of investment experience. She earned a B.A. in
Economics, cum laude and with honors, from Kenyon College and an M.B.A. from
Case Western Reserve University. Ms. Matts earned the Chartered Financial
Analyst designation in 1991.
MIRKO M. MIKELIC has been a portfolio manager of the FIFTH THIRD BOND FUND since
April 2005 and of the FIFTH THIRD U.S. GOVERNMENT BOND FUND since November 2004.
Mr. Mikelic joined Fifth Third Asset Management, Inc. as a Senior Analyst -
Fixed Income in June 2003. Prior to joining Fifth Third, Mr. Mikelic was an
international equity analyst at ReachCapital Management in Harrison, NY and
wrote research reports for CCN LLC. Prior to CCN, Mr. Mikelic spent 3 years at
Credit Suisse First Boston/DLJ where he was part of the Liability Management
desk. Additionally, he worked in a mortgage sales capacity with many of the
largest fixed income managers globally. Previous to DLJ, Mr. Mikelic spent two
years with Morgan Stanley as a Fixed Income Associate on the Mortgage Research &
Trading desks. Mr. Mikelic received a BA degree in Chemistry/Physics at
Kalamazoo College as well as a BSEE from Wayne State University. Mr. Mikelic
also completed an MA in International Political Economy/Relations and later an
MBA in Analytic Finance and Accounting from the University of Chicago. In
between his MA and MBA, Mr. Mikelic was a consultant for Information Resources,
designing multidimensional OLAP databases.
TED MOORE joined Fifth Third Asset Management, Inc. in August 2006, and has been
a portfolio manager for the FIFTH THIRD SMALL CAP VALUE FUND since August 2006.
Mr. Moore has ten years of investment experience and, prior to joining Fifth
Third, he served as an Equity Research Analyst with National City Private Client
Group for six years and a small and mid cap stock analyst for both Driehaus
Capital Management and Morgan Keegan & Co. Mr. Moore earned a BA in history from
Williams College, an M.B.A. in finance from Indiana University, and earned the
Chartered Financial Analyst designation in 2000.
DANIEL O'NEILL has been the portfolio manager of the FIFTH THIRD MICRO CAP VALUE
FUND since April 2005. Prior to joining Fifth Third Asset Management, Inc., Mr.
O'Neill spent four years as an equity analyst focused on the Consumer/Retail
sector for DB Advisors, LLC and Granite Capital International Group, LP.
Previously, he was a sell-side analyst at Credit Suisse First Boston, where he
followed the Leisure Industry for two years. Before attending business school,
Mr. O'Neill was an equity analyst at Clarion Management Ltd for four years. Mr.
O'Neill received his B.S. in Industrial and Labor Relations from Cornell
University and his MBA from Columbia Business School, where he was elected to
the Beta Gamma Sigma Honor Society. He earned the Chartered Financial Analyst
designation in 1997.
SARAH M. QUIRK has been the portfolio manager for the FIFTH THIRD MICHIGAN
MUNICIPAL BOND FUND, the FIFTH THIRD MUNICIPAL BOND FUND and the FIFTH THIRD
INTERMEDIATE MUNICIPAL BOND FUND since May 1998, and of the FIFTH THIRD OHIO
MUNICIPAL BOND FUND since May 2005. Ms. Quirk is a Senior Portfolio Manager of
Tax Exempt Fixed Income for Fifth Third Asset Management, Inc. and has over
twenty-one years of investment experience. Prior to joining Fifth Third Asset
Management, Inc.'s predecessor, Lyon Street Asset Management, in January 1998,
Ms. Quirk managed a Michigan municipal money market fund and spent fifteen years
in the municipal bond industry as a municipal bond trader. She earned her BS
degree in finance in 1979 from Ball State University and her MBA from The
University of Notre Dame in 1997.
SUNIL M. REDDY has been the portfolio manager for the FIFTH THIRD TECHNOLOGY
FUND since inception in June 2000. Mr. Reddy is a Senior Portfolio Manager of
Large Cap Growth Strategies for Fifth Third Asset Management, Inc. Since 1997,
he has been an Equity Analyst covering semiconductor, semiconductor equipment,
enterprise hardware and software sectors at Fifth Third Bank. Prior to 1997, he
was a portfolio manager at a large Midwestern bank. He earned his Chartered
Financial Analyst designation in 1996 and has over fourteen years of investment
experience. Mr. Reddy earned a BS in Electrical Engineering from The Ohio State
University and a MBA from Case Western Reserve University.
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FUND MANAGEMENT
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CHRISTIAN L. RIEDDLE has been a portfolio manager of the FIFTH THIRD BOND FUND,
the FIFTH THIRD INTERMEDIATE BOND FUND and the FIFTH THIRD U.S. GOVERNMENT BOND
FUND since March 2003. Mr. Rieddle joined Fifth Third Asset Management, Inc. as
a Senior Portfolio Manager of Taxable Fixed Income in August 2002. Prior to
joining Fifth Third Asset Management, Inc., he spent nearly four years as a
Trust Officer and Portfolio Manager with First Indiana Bank. From 1989 through
1998, Mr. Rieddle was an Institutional Portfolio Manager with Bank One and its
predecessor institutions. Mr. Rieddle graduated from Indiana
University-Bloomington with a B.S. degree in Business in May 1979, and a Masters
of Business Administration degree in May 1982. Mr. Rieddle earned his Chartered
Financial Analyst designation in 1993.
MITCHELL L. STAPLEY has been the portfolio manager of the FIFTH THIRD BALANCED
FUND (fixed income portion) since August 2002, of the FIFTH THIRD INTERMEDIATE
BOND FUND since November 1992, of the FIFTH THIRD U.S. GOVERNMENT BOND FUND
since October 2001, of the FIFTH THIRD SHORT TERM BOND FUND since November 1996,
of the FIFTH THIRD BOND FUND since March 1995, of the FIFTH THIRD HIGH YIELD
BOND FUND since November 2005, and the portfolio manager of the FIFTH THIRD
LIFEMODEL FUNDS SM since August 2006. Mr. Stapley, Chief Fixed Income Officer
for Fifth Third Asset Management, Inc., is responsible for all fixed income
management and trading. Mr. Stapley has been with Fifth Third since December
1988 and has over twenty-two years of portfolio management experience. Prior to
joining Fifth Third, Mr. Stapley was Manager of Short Term Investments/Foreign
Exchange Exposure at Navistar International Corporation in Chicago, where he was
responsible for both investment strategy and implementation and foreign exchange
hedging and trading. Prior to joining Navistar, Mr. Stapley served as a
Portfolio Manager for William Wrigley Jr. Company in Chicago. He earned the
Chartered Financial Analyst designation in 1994 and received his BS degree in
Economics and Political Science, with honors, from Albion College in 1981. Mr.
Stapley is a member of the Detroit Bond Club.
JILL A. THOMPSON has been the portfolio manager of the FIFTH THIRD SMALL CAP
GROWTH FUND since July 2005, and has been the portfolio manager of the FIFTH
THIRD MID CAP GROWTH FUND since August 2006. Ms. Thompson joined Fifth Third
Asset Management in March 2005 as Portfolio Manager on the firm's small and mid
cap growth products. Before joining Fifth Third, Ms. Thompson served as
co-portfolio manager of KB Growth Advisors' small cap growth product for five
years. Prior to that, she was with US Bancorp Piper Jaffray for ten years, where
she served as co-portfolio manager of US Bancorp Asset Management/Piper Capital
Management's small and mid cap growth products. A Chartered Financial Analyst,
Ms. Thompson graduated from St. Cloud State University with a Bachelor of
Science in Finance. Ms. Thompson has 17 years of investment experience.
MICHAEL P. WAYTON has been a portfolio manager of the FIFTH THIRD EQUITY INDEX
FUND and the FIFTH THIRD LARGE CAP CORE FUND since February 2005. Mr. Wayton is
a Portfolio Manager of Quantitative Strategies for Fifth Third Asset Management,
Inc. Prior to joining Fifth Third in December 2004, he spent 4 1/2 years as
a quantitative analyst for the National City Investment Management Company where
he was responsible for the management of the firm's passive assets and the
development of quantitative equity models. Prior to that he spent 1 1/2 years
in National City's personal trust department. Mr. Wayton earned the Chartered
Financial Analyst designation in 2005. Mr. Wayton earned a BSBA in finance from
The Ohio State University.
E. KEITH WIRTZ has been the portfolio manager of the FIFTH THIRD INTERNATIONAL
EQUITY FUND since November 2003, and the portfolio manager of the FIFTH THIRD
LIFEMODEL FUNDS SM since August 2006. Mr. Wirtz joined Fifth Third Asset
Management, Inc. as the President and Chief Investment Officer and Fifth Third
Bank as the Chief Investment Officer in March 2003. From 2000 through March
2003, Mr. Wirtz was the President and Chief Executive Officer of Paladin
Investment Associates, LLC, an investment management firm. From 1999 to 2000,
Mr. Wirtz was the President and Chief Executive Officer of Investment Advisers,
Inc., an investment management subsidiary of Lloyds TSB. From 1981 to 1999, Mr.
Wirtz held a variety of investment management positions at Bank of America Corp.
DAVID L. WITHROW has been the portfolio manager the FIFTH THIRD SHORT TERM BOND
FUND since May 2002 and of the FIFTH THIRD INTERMEDIATE BOND FUND since April
2004. He joined Fifth Third Bank's Investment Advisors Division in 1999 as a
senior fixed income portfolio manager for actively managed institutional
accounts. Prior to joining Fifth Third, he spent over 10 years as a fixed income
portfolio manager with Prime Capital Management. Mr. Withrow graduated from
Anderson University and earned a BA in Economics. Mr. Withrow earned his
Chartered Financial Analyst designation in 1993.
PATRICIA YOUNKER has been a portfolio manager for the Fifth Third municipal
money market funds since October 2001 and has been a portfolio manager for the
FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND, the FIFTH THIRD MUNICIPAL BOND FUND,
the FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND, and the FIFTH THIRD OHIO
MUNICIPAL BOND FUND since November 2006. Ms. Younker has been a Senior Portfolio
Manager for Fifth Third Asset Management, Inc. Ms. Younker has 20 years of
experience within the investment department of FTAM and its predecessor, Lyon
Street Asset Management Company. Ms. Younker graduated from Davenport University
with a B.S. in Business Administration.
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MORGAN STANLEY INVESTMENT MANAGEMENT INC.
ANN D. THIVIERGE has served as portfolio manager for the FIFTH THIRD
INTERNATIONAL EQUITY FUND since November 1995. She joined Morgan Stanley in
1986. Pior to 1995, Ms. Thivierge was a senior professional in Morgan Stanley
Investment Management's (MSIM) Fiduciary Group, advising large pension plans and
family trusts on asset allocation and manager selection. In 1997, Ms. Thivierge
was named managing director and has been a member of MSIM's Asset Allocation
Committee since 1998. Ms. Thivierge graduated from James Madison College,
Michigan State University with a B.A., in International Relations and earned her
M.B.A. in finance from Stern Business School, New York University in 1992. Ms.
Thivierge is on the Board of Highbridge Voices, an afterschool choir program
serving over 200 children in the Bronx.
FORT WASHINGTON INVESTMENT ADVISORS, INC.
J. KEVIN SEAGRAVES is a Chartered Financial Analyst and has served as portfolio
manager for the FIFTH THIRD HIGH YIELD BOND FUND since its inception in
November, 2005. Mr. Seagraves has served as a Senior Credit Analyst for Fixed
Income and Credit Research at Fort Washington since 2003. From 1998-2003, Mr.
Seagraves was a Senior Analyst at Summit Investment Partners. From 1996-1998,
Mr. Seagraves was a Credit Team Leader and Credit Analyst at National City Bank.
Mr. Seagraves earned a BS in Finance from Miami University.
BRENDAN M. WHITE is a Chartered Financial Analyst and has served as portfolio
manager for the FIFTH THIRD HIGH YIELD BOND FUND since its inception in
November, 2005. Mr. White is currently a Managing Director and Senior Portfolio
Manager of Fort Washington and was previously a Vice President and Senior
Portfolio Manager of Fort Washington. He has worked for Fort Washington since
1993 and has over 15 years of fixed-income management experience. Mr. White
holds an MBA from Xavier University and a BS in Finance from The Ohio State
University.
The SAI provides additional information about the portfolio managers'
compensation, other accounts managed by the portfolio managers, and the
portfolio managers' ownership of securities in the Funds
PORTFOLIO HOLDINGS
- --------------------------------------------------------------------------------
The Funds have established policies and procedures with respect to the
disclosure of the Funds' portfolio holdings. A description of the policies and
procedures is provided in the Statement of Additional Information. The Funds
will publicly disclose their portfolio holdings, as reported on a week-end
basis, by posting this information on the Trust's website
(www.fifththirdfunds.com), in the section entitled "Annual Reports and Other
Information". The schedules will consist of the following information about each
security (other than cash positions) held by the Funds as of the relevant
week-end: CUSIP number, the name of the issuer, number of shares or aggregate
par value held, and the traded market value. This information will be posted on
the Tuesday following the relevant week's end, and will remain accessible on the
website until the next week's information is posted.
115
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
PURCHASING AND SELLING FUND SHARES
- --------------------------------------------------------------------------------
PRICING MONEY MARKET FUND SHARES
The price of Fund shares is based on the Fund's Net Asset Value (NAV), which is
calculated by dividing the Fund's net assets by the number of its shares
outstanding. The Fund attempts to maintain a NAV of $1 per share. The value of
each portfolio instrument held by the Funds is determined by using amortized
cost.
The Fifth Third Michigan Municipal Money Market Fund calculates its NAV at 12
noon. The Fifth Third Government Money Market Fund calculates its NAV at 2 p.m.
The Fifth Third Municipal Money Market Fund calculates its NAV at 12 noon and 2
p.m. Fifth Third Prime Money Market Fund calculates its NAV at 4 p.m. All times
are Eastern Time. Each Money Market Fund's NAV is calculated on any day that the
Federal Reserve Bank of Cleveland and the principal bond markets (as recommended
by the Bond Market Association) are open for regular trading, as well as any
other day on which regular trading in money market instruments is taking place.
On any day that the bond markets close early, such as days in advance of
holidays or in the event of any emergency, the Funds reserve the right to
advance the time NAV is determined and by which purchase, redemption, and
exchange orders must be received on that day. The Funds will be closed on the
following holidays: New Year's Day, Martin Luther King Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans'
Day, Thanksgiving Day and Christmas.
PRICING STOCK AND BOND FUND SHARES
The price of Fund shares is based on the Fund's NAV, which is calculated by
dividing the Fund's net assets by the number of its shares outstanding. The
value of each portfolio instrument held by the Funds is determined by using
market prices, where available, and fair market values. Under special
circumstances, such as when an event occurs after the close of the exchange on
which a Fund's portfolio securities are principally traded, but prior to 4:00
p.m. Eastern Time, which, in the investment manager's opinion has materially
affected the price of those securities, the Fund may use fair value pricing.
There is no guarantee that the value determined for a particular security would
be the value realized upon sale of the security. Each Fund's NAV is calculated
at 4:00 p.m. Eastern Time each day the New York Stock Exchange is open for
regular trading. Each Fund's NAV may change on days when shareholders will not
be able to purchase or redeem Fund shares. The Funds will be closed on the
following holidays: New Year's Day, Martin Luther King Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas.
ADDITIONAL INFORMATION ABOUT PRICING FUND SHARES
Shares of the Funds are sold through financial intermediaries who have entered
into sales agreements with Fifth Third Funds Distributor, Inc., the Funds'
Distributor. The Trust has authorized one or more brokers to receive on its
behalf purchase or redemption orders. These brokers are authorized to designate
other intermediaries to act in this capacity. Orders received prior to the close
of the New York Stock Exchange by a financial intermediary that has been
authorized to accept orders on the Trust's behalf will be deemed accepted by the
Trust the same day and will be executed at that day's closing share price. Each
financial intermediary's agreement with the Trust permits the financial
intermediary to transmit orders received by the financial intermediary prior to
the close of regular trading on the New York Stock Exchange to the Trust after
that time and allows those orders to be executed at the closing share price
calculated on the day the order was received by the financial intermediary.
The purchase or sale of Fund shares through financial intermediaries may be
subject to transaction fees or other different or additional fees than those
otherwise disclosed in this Prospectus.
ABUSIVE TRADING PRACTICES
- --------------------------------------------------------------------------------
In order to protect shareholders, the Funds discourage excessive short-term or
other abusive trading practices that can increase transactional expenses,
produce adverse tax consequences, or interfere with the efficient execution of
portfolio management strategies. The Funds may reject purchases or exchanges, or
terminate purchase or exchange privileges where excessive short-term or other
abusive trading practices are detected. Certain accounts ("omnibus accounts")
include multiple investors and such accounts typically provide the Funds with a
net purchase or redemption request on any given day where purchasers of Fund
shares and redeemers of Fund shares are netted against one another and the
identity of individual purchasers and redeemers whose orders are aggregated are
not known by the Funds. While the Funds monitor for excessive short-term or
other abusive trading practices, there can be no guarantee that the Funds will
be successful in identifying this activity, particularly with respect to
activity occurring within omnibus accounts.
116
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
The Trustees have approved policies and procedures designed to detect and
prevent short-term trading activity and other abusive trading activity in Fund
shares. First, when a market quotation is not readily available for a security,
the Funds are exposed to the risk that investors may purchase or redeem shares
at a net asset value that does not appropriately reflect the value of the
underlying securities. The Funds seek to deter and prevent this activity,
sometimes referred to as "stale price arbitrage", by the appropriate use of
"fair value" pricing of the Funds' portfolio securities. Second, the Funds seek
to monitor shareholder account activities in order to detect and prevent
excessive and disruptive trading practices. Personnel responsible for detecting
short-term trading activity (the "Trading Monitor") in the Funds' shares is
responsible for (i) rejecting any purchase or exchange, or (ii) terminating
purchase or exchange privileges if, in the judgment of the Trading Monitor, the
transaction would adversely affect a Fund or its shareholders. The Funds
recognize that the Trading Monitor will not always be able to detect or prevent
short-term or other abusive trading practices, particularly with respect to
activity occurring within omnibus accounts.
PURCHASING AND ADDING TO YOUR SHARES
- --------------------------------------------------------------------------------
You may purchase shares on days when the Funds are open for business. Your
purchase price will be the next NAV after your purchase order, completed
application and full payment have been received by the Funds, its transfer
agent, or other servicing agent. All orders for the Stock Funds, the Asset
Allocation Funds, or for the Bond Funds must be received by the Funds or its
transfer agent prior to 4:00 p.m. Eastern Time in order to receive that day's
NAV. All purchase orders for the Money Market Funds must be received by the
Funds' transfer agent on the following schedule (Eastern Time) in order to
receive that day's NAV (and in the case of the Fifth Third Municipal Money
Market Fund, the NAV calculated at 2 p.m.) and dividends: Fifth Third Michigan
Municipal Money Market Fund -- 12 noon; Fifth Third Government Money Market Fund
and Fifth Third Municipal Money Market Fund -- 2 p.m.; and Fifth Third Prime
Money Market Fund -- 4 p.m. Purchase orders received after those times will be
processed on the following business day.
You may purchase Class A, B, C and Advisor shares through broker-dealers and
financial institutions which have a sales agreement with the distributor of Fund
shares ("Dealers"). In order to purchase shares through any financial
institution, you must open an account with that institution. That account will
be governed by its own rules and regulations, which may be more stringent than
the rules and regulations governing an investment in the Funds, and you should
consult your account documents for full details.
SHAREHOLDER CONTACT INFORMATION
- --------------------------------------------------------------------------------
For accounts held at the Funds, please call 1-800-282-5706, or write to Fifth
Third Funds, P.O. Box 182706, Columbus, Ohio 43218-2706 or via express mail to:
Fifth Third Funds, c/o BISYS Fund Services, 3435 Stelzer Road, Columbus, Ohio
43219-3035.
For account holders at other financial institutions, contact your investment
representative at your financial institution.
The entity through which you are purchasing your shares is responsible for
transmitting orders to the Funds and it may have an earlier cut-off time and
different trading and exchanging policies. Consult that entity for specific
information. Some policy differences may include:
o minimum investment requirements
o exchange policies
o cutoff time for investments
o redemption fees
If your purchase order has been received by the Funds prior to the time
designated by the Funds for receiving orders, you will receive the dividend, if
any, declared for that day.
INVESTMENT AMOUNTS
The minimum initial investment in Class A shares, Class B shares, Class C
shares, or Advisor shares of the Funds offered by this Prospectus is $1,000. The
minimum initial investment through an individual retirement account is $500.
Subsequent investments must be in amounts of at least $50. The maximum
investment for total purchases of Class B shares by a shareholder is $99,999.
The maximum investment for total purchases of Class C shares or Advisor shares
by a shareholder is $999,999. These limitations on purchases of Class B, Class C
and Advisor shares do not apply to retirement plans or omnibus accounts.
117
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
The investment limitations described above are for your benefit. They are
cumulative and therefore multiple transactions that in total exceed these stated
limitations must be disclosed to your investment representative to allow an
accurate calculation. It is your responsibility to disclose all your
transactions and holdings in the Funds to your investment representative.
SHAREHOLDER INFORMATION
All purchases must be in U.S. dollars. A fee may be charged for any checks that
do not clear. The Funds reserve the right to reject cash, third-party checks,
starter checks, traveler's checks and credit card convenience checks. Money
orders are not accepted. All checks should be made payable to the Fifth Third
Funds.
For details, contact the Trust toll-free at 1-800-282-5706 or write to: Fifth
Third Funds, 3435 Stelzer Road, Columbus, Ohio 43219.
The Funds may reject a purchase order for any reason. The Funds reserve the
right to waive the minimum initial investment.
SYSTEMATIC INVESTMENT PROGRAM
You may make monthly systematic investments in Class A, B, C or Advisor shares
of the Funds from your bank account. There is no minimum amount required for
initial amounts invested into the Funds. You may elect to make systematic
investments on the 1st or the 15th of each month, or both. If the 1st or the
15th of the month is not a day on which the Funds are open for business, the
purchase will be made on the following day the Funds are open for business.
AVOID WITHHOLDING TAX
Each Fund is required to withhold a portion of taxable dividends, capital gains
distributions and redemptions paid to any shareholder who has not provided the
Fund with his or her certified Taxpayer Identification Number (your Social
Security Number for individual investors) or otherwise fails to comply with IRS
rules. Shareholders are urged to read the additional information concerning
withholding provided in the SAI.
CUSTOMER IDENTIFICATION INFORMATION
To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person that opens a new account, and
to determine whether such person's name appears on government lists of known or
suspected terrorists and terrorist organizations.
As a result, the Funds must obtain the following information for each person
that opens a new account:
o Name;
o Date of birth (for individuals);
o Residential or business street address (although post office boxes
are still permitted for mailing); and
o Social security number, taxpayer identification number, or other
identifying number.
You may also be asked for a copy of your driver's license, passport or other
identifying document in order to verify your identity. In addition, it may be
necessary to verify your identity by cross-referencing your identification
information with a consumer report or other electronic database. Additional
information may be required to open accounts for corporations and other
entities. Federal law prohibits the Funds and other financial institutions from
opening a new account unless they receive the minimum identifying information
listed above. After an account is opened, the Funds may restrict your ability to
purchase additional shares until your identity is verified. The Funds may close
your account or take other appropriate action if they are unable to verify your
identity within a reasonable time. If your account is closed for this reason,
your shares will be redeemed at the NAV next calculated after the account is
closed.
118
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
SELLING YOUR SHARES
- --------------------------------------------------------------------------------
You may sell your shares on days when the Fund is open for business. Your sales
price will be the next NAV after your sell order is received by the Funds, its
transfer agent, or other servicing agent. For stock, bond, and asset allocation
Funds, all orders must be received prior to the time the Fund calculates its NAV
in order to receive that day's NAV. If your order has been received by the Fund
prior to the time the Fund calculates its NAV, and your shares have been sold,
you will not receive the dividend, if any, declared for that day.
For money market funds, orders to sell shares received by the Fifth Third Funds'
transfer agent according to the following schedule will be processed that day
and will not be entitled to that day's dividend: Fifth Third Municipal Money
Market Fund and Fifth Third Michigan Municipal Money Market Fund -- 12 noon;
Fifth Third Government Money Market Fund -- 2 p.m.; and Fifth Third Prime Money
Market Fund -- 4 p.m. Orders to sell shares of the Funds received by the Fifth
Third Funds' transfer agent after these times will be processed on the following
business day and will be entitled to dividends until the processing date.
The entity through which you are selling your shares is responsible for
transmitting the order to the Funds, and it may have an earlier cut-off for sale
requests. Consult that entity for specific information.
For accounts held at the Funds, please call 1-800-282-5706, or write to Fifth
Third Funds, P.O. Box 182706, Columbus, Ohio 43218-2706 or via express mail to:
Fifth Third Funds, c/o BISYS Fund Services, 3435 Stelzer Road, Columbus, Ohio
43219-3035.
In certain circumstances, shares may be sold only by written request,
accompanied by a signature guarantee.
REDEMPTIONS IN WRITING REQUIRED
You must request redemption in writing and obtain a signature guarantee if:
o The address on file has been changed in the last 10 business days.
o The check is not being mailed to the address on your account.
o The check is not being made payable to the owner of the account.
o You are requesting a redemption with electronic or wire transfer
payment and have not previously established this option on your
account.
You may obtain a signature guarantee from a financial institution, such as a
bank, broker-dealer, or credit union, or from members of the Securities Transfer
Agents Medallion Program (STAMP), New York Stock Exchange Medallion Signature
Program (MSP), or Stock Exchanges Medallion Program (SEMP). Members of the
STAMP, MSP, and SEMP are subject to dollar limitations, which must be considered
when requesting their guarantee. The Transfer Agent may reject any signature
guarantee if it believes the transaction would otherwise be improper.
SYSTEMATIC WITHDRAWAL PLAN
You may make automatic withdrawals on a monthly, quarterly or annual basis on
the first day of that period that the Funds are open for business. The minimum
required balance is $10,000 and the minimum withdrawal amount is $100.
POSTPONEMENT OF REDEMPTION PAYMENTS
Federal securities law permits any Fund to delay sending to you redemption
proceeds for up to seven days if the Fund believes that a redemption would
disrupt its operation or performance. Under unusual circumstances, the law also
permits the Fund to delay sending redemption payments during any period when (a)
trading on the NYSE is restricted by applicable rules and regulations of the
SEC, (b) the NYSE is closed for other than customary weekend and holiday
closings, (c) the SEC has by order permitted such suspension, or (d) an
emergency exists as determined by the SEC.
REDEMPTION IN KIND
If, during any 90 day period, you redeem Fund shares worth more than $250,000
(or 1% of a Fund's net asset value if that amount is less than $250,000), the
Funds reserve the right to pay part or all of the redemption proceeds in excess
of these amounts in readily marketable securities instead of in cash.
REDEMPTIONS WITHIN 15 DAYS OF INVESTMENT--SHARES PURCHASED BY CHECK
When you have made your investment by check, you cannot redeem any portion of it
until the Transfer Agent is satisfied that the check has cleared (which may
require up to 15 business days). You can avoid this delay by purchasing shares
with a certified check, or by wire.
119
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
UNDELIVERABLE OR UNCASHED CHECKS
Any check tendered in payment of a redemption transaction that cannot be
delivered by the post office or which remains uncashed for more than six months
may be reinvested in the shareholder's account at the then-current NAV.
Any check tendered in payment of dividends or other distributions that cannot be
delivered by the post office or which remains uncashed for more than six months
may be reinvested in the shareholder's account at the then-current NAV, and the
dividend option may be changed from cash to reinvest. Distributions are
reinvested on the ex-date at the NAV determined at the close of business on that
date. No interest will accrue on amounts represented by uncashed redemption
checks.
CLOSING OF SMALL ACCOUNTS
If your account falls below $1,000 because of redemptions, the Fund may ask you
to increase your balance. If it is still below the minimum after 30 days, the
Fund may close your account and send you the proceeds at the current NAV.
EXCHANGING YOUR SHARES
- --------------------------------------------------------------------------------
You may exchange your Fund shares for the same class of shares of any other
Fifth Third Fund. No transaction fees are charged for exchanges. Be sure to read
the Prospectus carefully of any Fund into which you wish to exchange shares.
You must meet the minimum investment requirements for the Fund into which you
are exchanging. Exchanges from one Fund to another are taxable for investors
subject to federal or state income taxation.
INSTRUCTIONS FOR EXCHANGING SHARES
For accounts held at the Funds, please call 1-800-282-5706, or write to Fifth
Third Funds, P.O. Box 182706, Columbus, Ohio 43218-2706 or via express mail to:
Fifth Third Funds, c/o BISYS Fund Services, 3435 Stelzer Road, Columbus, Ohio
43219-3035.
For account holders at other financial institutions, contact your investment
representative at your financial institution.
NOTES ON EXCHANGES
In order to prevent excessive short-term or other abusive trading practices, the
Funds may reject exchanges, or change or terminate rights to exchange shares at
any time.
When exchanging from a Fund that has no sales charge or a lower sales charge to
a Fund with a higher sales charge, you will pay the difference. +
Shares of the new Fund must be held in the same account name, with the same
registration and tax identification numbers, as the shares of the old Fund.
The Exchange Privilege may be changed or eliminated at any time.
The Exchange Privilege is available only in states where shares of the Funds may
be sold.
All exchanges are based on the relative net asset value next determined after
the exchange order is received by the Funds.
+ Fifth Third has agreed to waive the sales load for former Kent Fund
shareholders and for shareholders who owned Advisor shares of any Fifth
Third Fund prior to August 1, 2005.
AUTOMATIC EXCHANGE PROGRAM--PRIME MONEY MARKET FUND'S CLASS B SHARES ONLY
You can use the Funds' Automatic Exchange feature to purchase Class B shares of
the Funds at regular intervals through regular, automatic redemptions from your
Fifth Third Fund account. Shareholders investing directly in Class B shares of
the Fund, as opposed to Shareholders obtaining Class B shares of the Fund upon
exchange of Class B shares of any of the other Funds will be requested to
participate in the Automatic Exchange Program and to set the time and amount of
their regular, automatic withdrawal in such a way that all of the Class B shares
have been withdrawn from the Fund within two years of purchase. To participate
in the Automatic Exchange Program invest a minimum of $10,000 in the Fund and
$1,000 in the Fund whose shares you are buying. To add the Automatic Exchange
Program to your account or to change or terminate the Automatic Exchange
instructions on an existing account, contact Fifth Third Securities, Inc. or
your financial institution.
120
SHAREHOLDER INFORMATION
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DISTRIBUTION ARRANGEMENTS/SALES CHARGES FOR STOCK, BOND AND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
Class A shares, Class B shares, Class C shares, and Advisor shares have
different expenses and other characteristics, allowing you to choose the class
that best suits your needs. You should consider the amount you want to invest,
how long you plan to have it invested, and whether you plan to make additional
investments. Your financial representative can help you decide which share class
is best for you. When purchasing shares, you must specify which class of shares
you wish to purchase.
CLASS A CLASS B CLASS C ADVISOR
- -----------------------------------------------------------------------------------------------------------------------------------
CHARGE (LOAD) Front-end sales charge No front-end sales charge. No front-end sales charge. Front-end sales charge
(not applicable to money A contingent deferred A contingent deferred (not applicable to
market funds); reduced sales charge (CDSC) will sales charge (CDSC) will money market funds);
sales charges available. be imposed on shares be imposed on shares reduced sales charges
redeemed within 6 years redeemed within 12 available.
after purchase. months after purchase.
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION/SERVICE Subject to annual Subject to annual Subject to annual Subject to annual
(12B-1) FEE distribution and distribution and distribution and distribution and
shareholder servicing shareholder servicing fees shareholder servicing fees shareholder servicing fees
fees of up to 0.25% of up to 1.00% of the of up to 0.75% of the of up to 0.50% of the
of the Fund's assets. Fund's assets. Fund's assets. (Also Fund's assets.
subject to a non-12b-1
fee for shareholder
servicing of up to 0.25%
of the Fund's assets.)
- -----------------------------------------------------------------------------------------------------------------------------------
FUND EXPENSES Lower annual expenses Higher annual expenses Higher annual expenses Higher annual expenses
than Class B, C than Class A shares. than Class A shares. than Class A shares.
and Advisor shares.
- -----------------------------------------------------------------------------------------------------------------------------------
CONVERSION None Converts to Class A None None
shares after 8 years.
- -----------------------------------------------------------------------------------------------------------------------------------
MAXIMUM PURCHASE None $99,999 $999,999 $999,999
AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
121
SHAREHOLDER INFORMATION
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Fifth Third Funds (the "Trust") offers shares of certain classes of the
following Funds:
FUND CLASS A CLASS B CLASS C ADVISOR
- --------------------------------------------------------------------------------
Small Cap Growth Fund X X X X
- --------------------------------------------------------------------------------
Mid Cap Growth Fund X X X X
- --------------------------------------------------------------------------------
Quality Growth Fund X X X X
- --------------------------------------------------------------------------------
Large Cap Core Fund X X X X
- --------------------------------------------------------------------------------
Equity Index Fund X X X X
- --------------------------------------------------------------------------------
Balanced Fund X X X X
- --------------------------------------------------------------------------------
Micro Cap Value Fund X X X X
- --------------------------------------------------------------------------------
Small Cap Value Fund X X X X
- --------------------------------------------------------------------------------
Multi Cap Value Fund X X X X
- --------------------------------------------------------------------------------
Disciplined Large Cap Value Fund X X X X
- --------------------------------------------------------------------------------
LifeModel Aggressive Fund SM X X X X
- --------------------------------------------------------------------------------
LifeModel Moderately Aggressive Fund SM X X X X
- --------------------------------------------------------------------------------
LifeModel Moderate Fund SM X X X X
- --------------------------------------------------------------------------------
LifeModel Moderately Conservative Fund SM X X X X
- --------------------------------------------------------------------------------
LifeModel Conservative Fund SM X X X X
- --------------------------------------------------------------------------------
Strategic Income Fund X X X X
- --------------------------------------------------------------------------------
Dividend Growth Fund X X X X
- --------------------------------------------------------------------------------
Technology Fund X X X X
- --------------------------------------------------------------------------------
International Equity Fund X X X X
- --------------------------------------------------------------------------------
High Yield Bond Fund X X X X
- --------------------------------------------------------------------------------
Bond Fund X X X X
- --------------------------------------------------------------------------------
Intermediate Bond Fund X * X X
- --------------------------------------------------------------------------------
Short Term Bond Fund X X X
- --------------------------------------------------------------------------------
U.S. Government Bond Fund X X X
- --------------------------------------------------------------------------------
Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------
Intermediate Municipal Bond Fund X * X X
- --------------------------------------------------------------------------------
Ohio Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------
Michigan Municipal Bond Fund X X X X
- --------------------------------------------------------------------------------
Prime Money Market Fund X X X X
- --------------------------------------------------------------------------------
Government Money Market Fund X
- --------------------------------------------------------------------------------
Michigan Municipal Money Market Fund X
- --------------------------------------------------------------------------------
Municipal Money Market Fund X
- --------------------------------------------------------------------------------
* Class B shares are closed for purchases to all investors with no
exceptions. Shareholders of Class B shares of any Fifth Third Fund are not
permitted to exchange such shares for Class B shares of the Fifth Third
Intermediate Bond Fund or the Fifth Third Intermediate Municipal Bond
Fund.
122
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
CALCULATION OF SALES CHARGES
CLASS A SHARES
Class A shares are sold at their public offering price. This price includes the
initial sales charge (except the Money Market Funds, which do not impose a sales
charge). Therefore, part of the money you send to the Funds will be used to pay
the sales charge. The remainder is invested in Fund shares. The sales charge
decreases with larger purchases. There is no sales charge on reinvested
dividends and distributions.
The current sales charge rates are as follows:
EQUITY FUNDS SELECTED BOND FUNDS 3
- ---------------------------------------------------------------------------------------------------------------------
SALES CHARGE SALES CHARGE
AS A CHARGE AS A CHARGE
% OF AS A % % OF AS A %
OFFERING OF YOUR DEALER OFFERING OF YOUR DEALER
PRICE INVESTMENT REALLOWANCE PRICE INVESTMENT REALLOWANCE
- ---------------------------------------------------------------------------------------------------------------------
LESS THAN $50,000 5.00% 5.26% 4.50% 3.50% 3.63% 3.00%
- ---------------------------------------------------------------------------------------------------------------------
$50,000 BUT LESS THAN $100,000 4.50% 4.71% 4.00% 3.00% 3.09% 2.60%
- ---------------------------------------------------------------------------------------------------------------------
$100,000 BUT LESS THAN $250,000 3.50% 3.63% 3.00% 2.50% 2.56% 2.10%
- ---------------------------------------------------------------------------------------------------------------------
$250,000 BUT LESS THAN $500,000 2.50% 2.56% 2.10% 2.00% 2.04% 1.70%
- ---------------------------------------------------------------------------------------------------------------------
$500,000 BUT LESS THAN $1,000,000 2.00% 2.04% 1.70% 1.50% 1.52% 1.25%
- ---------------------------------------------------------------------------------------------------------------------
$1,000,000 OR MORE 1 0.00% 0.00% -- 2 0.00% 0.00% -- 2
- ---------------------------------------------------------------------------------------------------------------------
OTHER BOND FUNDS
- ---------------------------------------------------------------------------
SALES CHARGE
AS A CHARGE
% OF AS A %
OFFERING OF YOUR DEALER
PRICE INVESTMENT REALLOWANCE
- ---------------------------------------------------------------------------
LESS THAN $50,000 4.75% 4.99% 4.25%
- ---------------------------------------------------------------------------
$50,000 BUT LESS THAN $100,000 4.50% 4.71% 3.75%
- ---------------------------------------------------------------------------
$100,000 BUT LESS THAN $250,000 3.50% 3.63% 3.00%
- ---------------------------------------------------------------------------
$250,000 BUT LESS THAN $500,000 2.50% 2.56% 2.10%
- ---------------------------------------------------------------------------
$500,000 BUT LESS THAN $1,000,000 2.00% 2.04% 1.70%
- ---------------------------------------------------------------------------
$1,000,000 OR MORE 1 0.00% 0.00% -- 2
- ---------------------------------------------------------------------------
_____________________
1 If you purchase $1,000,000 or more of Class A shares and do not pay a
sales charge, and you sell any of these shares before the eighteen month
anniversary of purchase, you will pay a 1% CDSC on the portion redeemed at
the time of redemption. The CDSC will be based upon the lower of the NAV
at the time of purchase and the NAV at the time of redemption. In any
sales, certain shares not subject to the CDSC (i.e., shares purchased with
reinvested dividends or distributions) will be redeemed first, followed by
shares subject to the lowest CDSC (typically shares held for the longest
time). The CDSC will be waived for shares purchased as part of an
agreement where an organization agrees to waive its customary sales
commission.
2 With respect to dealer reallowance amounts applicable to purchases of
$1,000,000 or more, such amounts differ for certain funds as detailed in
the statement of additional information under the section entitled,
"Payments to Dealers." Please refer to the statement of additional
information for the specific details.
3 "Selected Bond Funds" include the Short Term Bond Fund, Intermediate Bond
Fund and Intermediate Municipal Bond Fund.
123
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
CLASS B SHARES
Class B shares are offered at NAV, without any up-front sales charge. Therefore,
all of the money that you send to the Funds is used to purchase Fund shares. If
you sell your Class B shares before the end of the sixth year after purchase,
however, you will pay a contingent deferred sales charge, or CDSC, at the time
of redemption. The CDSC will be based upon the lower of the NAV at the time of
purchase and the NAV at the time of redemption. In any sale, certain shares not
subject to the CDSC (i.e., shares purchased with reinvested dividends or
distributions) will be redeemed first, followed by shares subject to the lowest
CDSC (typically shares held for the longest time).
Class B shares are subject to the following CDSC schedule:
% OF NAV (AT TIME OF PURCHASE OR SALE
YEAR OF REDEMPTION AFTER PURCHASE IF LOWER) DEDUCTED FROM PROCEEDS
- --------------------------------------------------------------------------------
DURING THE FIRST YEAR 5%
- --------------------------------------------------------------------------------
DURING THE SECOND YEAR 4%
- --------------------------------------------------------------------------------
DURING THE THIRD OR FOURTH YEARS 3%
- --------------------------------------------------------------------------------
DURING THE FIFTH YEAR 2%
- --------------------------------------------------------------------------------
DURING THE SIXTH YEAR 1%
- --------------------------------------------------------------------------------
DURING THE SEVENTH OR EIGHTH YEARS 0%
- --------------------------------------------------------------------------------
CLASS C SHARES
Class C shares are offered at NAV, without any up-front sales charge. Therefore,
all the money you send to the Funds is used to purchase Fund shares. If you sell
your Class C shares before the first anniversary of purchase, however, you may
pay a 1% contingent deferred sales charge, or CDSC, at the time of redemption.
The CDSC will be based upon the lower of the NAV at the time of purchase and the
NAV at the time of redemption. In any sale, certain shares not subject to the
CDSC (i.e., shares purchased with reinvested dividends or distributions) will be
redeemed first, followed by shares subject to the lowest CDSC (typically shares
held for the longest time).
ADVISOR SHARES
The price of Advisor shares includes the initial sales charge (except the Prime
Money Market Fund, which does not impose a sales charge). Therefore, part of the
money you send to the Funds will be used to pay the sales charge. The remainder
is invested in Fund shares. The sales charge decreases with larger purchases.
There is no sales charge on reinvested dividends and distributions.
The current sales charge rates for the Short Term Bond Fund, the Intermediate
Bond Fund and the Intermediate Municipal Bond Fund are as follows:
SALES CHARGE AS A % CHARGE AS A %
OF OFFERING PRICE OF YOUR INVESTMENT DEALER REALLOWANCE
- ------------------------------------------------------------------------------------------------
LESS THAN $50,000 2.00% 2.04% 1.70%
- ------------------------------------------------------------------------------------------------
$50,000 BUT LESS THAN $100,000 1.50% 1.52% 1.25%
- ------------------------------------------------------------------------------------------------
$100,000 BUT LESS THAN $250,000 1.25% 1.27% 1.00%
- ------------------------------------------------------------------------------------------------
$250,000 BUT LESS THAN $500,000 1.00% 1.01% 0.85%
- ------------------------------------------------------------------------------------------------
$500,000 TO $999,999 0.50% 0.50% 0.40%
- ------------------------------------------------------------------------------------------------
$1,000,000 OR MORE Not available Not available Not available
- ------------------------------------------------------------------------------------------------
The current sales charge rates for all other Fifth Third Funds (except for the
Prime Money Market Fund) are as follows:
SALES CHARGE AS A % CHARGE AS A %
OF OFFERING PRICE OF YOUR INVESTMENT DEALER REALLOWANCE
- ------------------------------------------------------------------------------------------------
LESS THAN $50,000 3.25% 3.36% 2.90%
- ------------------------------------------------------------------------------------------------
$50,000 BUT LESS THAN $100,000 2.75% 2.83% 2.40%
- ------------------------------------------------------------------------------------------------
$100,000 BUT LESS THAN $250,000 2.00% 2.04% 1.70%
- ------------------------------------------------------------------------------------------------
$250,000 BUT LESS THAN $500,000 1.25% 1.27% 1.00%
- ------------------------------------------------------------------------------------------------
$500,000 TO $999,999 1.00% 1.01% 0.85%
- ------------------------------------------------------------------------------------------------
$1,000,000 OR MORE Not available Not available Not available
- ------------------------------------------------------------------------------------------------
124
SHAREHOLDER INFORMATION
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SALES CHARGE REDUCTIONS - CLASS A AND ADVISOR SHARES
The Funds offer reduced sales charges on Class A and Advisor shares under
certain circumstances, as defined below. To calculate the sales charge
applicable to your net purchase of Advisor shares, you may aggregate your
investment with the greater of the current market value or amount purchased of
any shares of any Fifth Third Fund (Market Funds) held in your account or
accounts listed under "Combination Privilege" below.
- --------------------------------------------------------------------------------
AS AN INVESTOR, IT IS YOUR RESPONSIBILITY TO DISCLOSE TO YOUR INVESTMENT
REPRESENTATIVE ALL OF YOUR MUTUAL FUND HOLDINGS TO ENSURE THAT YOU RECEIVE ALL
SALES CHARGE REDUCTIONS TO WHICH YOU ARE ENTITLED.
- --------------------------------------------------------------------------------
o LETTER OF INTENT. You inform the Fund in writing that you intend to
purchase at least $50,000 of Class A or Advisor shares (excluding
money market fund shares) over a 13-month period to qualify for a
reduced sales charge. You must include at least 5.00% of the total
amount you intend to purchase with your Letter of Intent. Shares
purchased under the non-binding Letter of Intent will be held in
escrow until the total investment has been completed. A Letter of
Intent may be backdated up to 90 days to include previous purchases
for determining your sales charge. In the event the Letter of Intent
is not completed, sufficient escrowed shares will be redeemed to pay
any applicable front-end sales charges.
o RIGHTS OF ACCUMULATION. When the value of shares you already own
plus the amount you intend to invest reaches the amount needed to
qualify for reduced sales charges, any additional investment will
qualify for the reduced sales charge. To determine whether the sale
charge reduction applies, the value of the shares you already own
will be calculated by using the greater of the current value or the
original investment amount. To be eligible for the right of
accumulation, shares of the Funds must be held in the following
types of accounts: (i) individual or joint accounts; (ii) retirement
accounts (IRA's, 401(k)'s, etc.); or (iii) other accounts owned by
the same shareholder (determined by tax ID) or other shareholders
eligible under the Combination Privilege defined below.
o COMBINATION PRIVILEGE. Combine accounts of multiple funds (excluding
Class A and Advisor shares of the Money Market Funds) or accounts of
immediate family household members (spouse and children under 21) to
achieve reduced sales charges.
In order to obtain a sales charge reduction you must provide the Distributor or
your investment representative, at the time of purchase, with information
regarding shares held in other accounts which may be eligible for aggregation.
It may be necessary to provide information or records regarding shares of the
Funds held in: (i) all accounts with the Funds or your investment
representative; (ii) accounts with other investment representatives; and (iii)
accounts in the name of immediate family household members (spouse and children
under 21).
Information regarding the Funds' sales charge reduction program can also be
obtained free of charge on the Funds' web-site: www.53.com.
SALES CHARGE WAIVERS
CLASS A SHARES
The following transactions qualify for waivers of sales charges that apply to
Class A shares:
o Reinvestment of distributions from a deferred compensation plan,
agency, trust, or custody account that was maintained by the Advisor
or its affiliates or invested in any Fifth Third Fund.
o Shares purchased for trust or other advisory accounts established
with the Advisor or its affiliates.
o Shares purchased by current and retired directors, trustees,
employees, and immediate family household members (spouse and
children under 21) of the Advisor and its affiliates, and any
organization that provides services to the Funds; current and
retired Fund trustees; dealers who have an agreement with the
Distributor; and any trade organization to which the Advisor or the
Administrator belongs.
o Shares purchased in connection with 401(k) plans, 403(b) plans and
other employer-sponsored Qualified Retirement Plans, "wrap" type
programs, non-transactional fee fund programs, and programs offered
by fee-based financial planners and other types of financial
institutions (including omnibus service providers).
o Shares purchased by former Kent Fund Investment Class shareholders.
125
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
CLASS B SHARES
The CDSC will be waived under certain circumstances, including the following:
o Minimum required distributions from an IRA or other qualifying
retirement plan to a shareholder who has attained age 70 1/2.
o Redemptions from accounts following the death or disability of the
shareholder.
o Investors who purchased through a participant directed defined
benefit plan.
o Returns of excess contributions to certain retirement plans.
o Distributions of less than 12% of the annual account value under the
Systematic Withdrawal Plan.
o Shares issued in a plan of reorganization sponsored by Fifth Third
Bank, or shares redeemed involuntarily in a similar situation.
o Shares issued for sweep accounts when a sales commission was not
paid at the time of purchase. In this case, the maximum purchase
amount is waived also.
CLASS C SHARES
The CDSC will be waived for shares purchased as part of an agreement whereby an
organization agrees to waive their customary sales commission.
ADVISOR SHARES
The following transactions qualify for waivers of sales charges that apply to
Advisor shares:
o Reinvestment of distributions from a deferred compensation plan,
agency, trust, or custody account that was maintained by the Advisor
or its affiliates or invested in any Fifth Third Fund.
o Shares purchased for trust or other advisory accounts established
with the Advisor or its affiliates.
o Shares purchased by current and retired directors, trustees,
employees, and immediate family household members (spouse and
children under 21) of the Advisor and its affiliates and any
organization that provides services to the Funds; current and
retired Fund trustees; dealers who have an agreement with the
Distributor; and any trade organization to which the Advisor or the
Administrator belongs.
o Shares purchased in connection with 401(k) plans, 403(b) plans and
other employer-sponsored Qualified Retirement Plans, "wrap" type
programs, non-transactional fee fund programs, and fee-based
programs offered by financial planners and other types of financial
institutions (including omnibus service providers).
o Shares purchased by shareholders who owned Advisor shares of any
Fifth Third Fund prior to August 1, 2005.
ADDITIONAL INFORMATION ABOUT SALES CHARGES
Current information regarding each Fund's sales charges and breakpoint discounts
is available by hyperlink on the Funds' Web site at www.53.com.
REINSTATEMENT PRIVILEGE
If you have sold Class A shares or Advisor shares and decide to reinvest in the
Fund within a 90-day period, you will not be charged the applicable sales load
on amounts up to the value of the shares you sold. You must provide a written
reinstatement request and payment within 90 days of the date your instructions
to sell were processed.
126
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
DISTRIBUTION/SERVICE (12b-1) FEES FOR ALL FUNDS
12b-1 fees compensate the Distributor and other dealers and investment
representatives for services and expenses related to the sale and distribution
of the Fund's shares and/or for providing shareholder services. In particular,
for Class B, Class C and Advisor shares, these fees help to defray the
Distributor's costs of advancing brokerage commissions to investment
representatives.
The 12b-1 fees vary by share class as follows:
o Class A shares may pay a 12b-1 fee of up to 0.25% of the average
daily net assets of the applicable Fund, which the Distributor may
use for shareholder servicing and distribution.
o Class B shares pay a 12b-1 fee at an annual rate of up to 1.00% of
the average daily net assets of the applicable Fund. The Distributor
may use up to 0.25% of the 12b-1 fee for shareholder servicing and
up to 0.75% for distribution.
o Class C shares pay a 12b-1 fee of up to 0.75% of the average daily
net assets of the applicable Fund, which the Distributor may use for
distribution. The higher 12b-1 fee on Class C shares, together with
the CDSC help to defray the Distributor's costs of advancing
brokerage commissions to investment representatives, allowing for
these shares to be sold without an "upfront" sales charge.
o Advisor shares may pay a 12b-1 fee at an annual rate of up to 0.50%
of the average daily net assets of the applicable Fund, which the
Distributor may use for shareholder servicing and distribution.
Please note that Class C shares pay a non-12b-1 shareholder servicing fee of up
to 0.25% of the average daily net assets of the applicable Fund.
Over time shareholders will pay more than the equivalent of the maximum
permitted front-end sales charge because 12b-1 distribution and service fees are
paid out of the Fund's assets on an on-going basis.
While Class B and Class C shares do not have any front-end sales charges, their
higher ongoing annual expenses (due to higher 12b-1 fees) mean that over time
Class B and Class C shareholders could end up paying more for these shares than
if such shareholders would have purchased Class A or Advisor shares and paid a
front-end sales charge.
- --------------------------------------------------------------------------------
YOUR FINANCIAL INTERMEDIARY MAY NOT SELL SHARES IN ALL CLASSES OF THE FUNDS OR
MAY SELL CLASSES THAT ARE MORE EXPENSIVE TO YOU AS COMPENSATION OR REIMBURSEMENT
FOR DIFFERING LEVELS OF SERVICING OR EXPENSES ASSOCIATED WITH YOUR ACCOUNT. THE
FUNDS CANNOT BE RESPONSIBLE FOR ENSURING THAT YOUR FINANCIAL INTERMEDIARY IS
PLACING YOU IN THE MOST APPROPRIATE CLASS OF SHARES AS WE ARE NOT PRIVY TO
DETAILS OF YOUR ACCOUNT AND ARE UNABLE TO MAKE A DETERMINATION AS TO WHICH CLASS
IS MOST SUITABLE. YOU SHOULD DISCUSS ALL COMPENSATION WITH YOUR FINANCIAL
INTERMEDIARY AND BE AWARE OF HOW YOUR ACCOUNT MIGHT BE AFFECTED.
- --------------------------------------------------------------------------------
CONVERSION TO CLASS A SHARES
Class B shares convert automatically to Class A shares 8 years after purchase.
After conversion, the 12b-1 fees applicable to your shares are reduced from
1.00% to 0.25% of the average daily net assets.
DEALER COMPENSATION AND INCENTIVES
The Distributor pays Dealers selling Class A or Advisor shares a one-time
concession at the time of sale ("Concession") equal to the "Dealer Reallowance"
set forth in the sales load schedule under "Calculation of Sales Charges - Class
A Shares" and "Calculation of Sales Charges - Advisor Shares." Additionally,
Dealers receive monthly ongoing compensation of up to 0.25% and 0.50% per year,
respectively, of the net asset value of the Class A and Advisor shares owned by
their customers as compensation for servicing such shareholders' accounts. The
Distributor may pay Dealers a finders fee on purchases of Class A shares
exceeding $1,000,000, as described in the Statement of Additional Information.
127
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
The Distributor pays Dealers selling Class B shares a Concession equal to 4% of
the purchase amount. Additionally, Dealers receive monthly ongoing compensation
of up to 0.25% per year of the net asset value of the Class B shares owned by
their customers as compensation for servicing such shareholders' accounts.
The Distributor pays Dealers selling Class C shares a Concession equal to 1% of
the purchase amount. Additionally, during the first 18 months following each
sale, Dealers receive monthly ongoing compensation of up to 0.25% per year of
the net asset value of such Class C shares for servicing such shareholders'
accounts. Thereafter, dealers receive quarterly ongoing compensation of 1.00%
per year of such Class C shares (0.25% per year for servicing the shareholder
accounts, and 0.75% per year as additional reallowance or concession).
With respect to Class A, Class B, Class C and Advisor shares, no Concession is
paid on shares issued in connection with reinvestments of dividends and capital
gains distributions.
In addition, the Advisor or its affiliates, in their sole discretion and out of
their own assets, may pay additional amounts to Dealers in connection with the
marketing and sale of Fund shares.
The Adviser is not permitted to consider sales of shares of the Funds (or other
Fifth Third Funds) as a factor in the selection of broker-dealers to execute
portfolio transactions for the Funds.
DIVIDENDS AND CAPITAL GAINS
- --------------------------------------------------------------------------------
All dividends and capital gains will be automatically reinvested unless you
request otherwise. You can receive them in cash or by electronic funds transfer
to your bank account if you are not a participant in an IRA account or in a tax
qualified plan. There are no sales charges for reinvested distributions.
Dividends are higher for Class A shares than for Class B shares, Class C shares
or Advisor shares, because Class A shares have lower operating expenses than
Class B shares, Class C shares or Advisor shares.
Distributions are made on a per share basis regardless of how long you've owned
your shares. Therefore, if you invest shortly before the distribution date, some
of your investment will be returned to you in the form of a taxable
distribution.
Dividends, if any, are DECLARED DAILY AND PAID MONTHLY by the following Funds:
Fifth Third Strategic Income Fund, Fifth Third Prime Money Market Fund, Fifth
Third Government Money Market Fund, Fifth Third Michigan Municipal Money Market
Fund, and Fifth Third Municipal Money Market Fund.
Dividends, if any, are DECLARED AND PAID MONTHLY by the following Funds: 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, Fifth
Third Ohio Municipal Bond Fund, and Fifth Third Michigan Municipal Bond Fund.
Dividends, if any, are DECLARED AND PAID QUARTERLY by the following Funds: 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 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 Dividend Growth Fund, and
Fifth Third Technology Fund.
Dividends, if any, are DECLARED AND PAID ANNUALLY by the following Funds: Fifth
Third Small Cap Growth Fund, Fifth Third Small Cap Value Fund and Fifth Third
International Equity Fund.
Capital gains, if any, are distributed at least annually.
As discussed in detail in the Statement of Additional Information, if a Fund
makes a distribution in excess of its current and accumulated "earnings and
profits" in any taxable year, the excess distribution will be treated as a
return of capital to the extent of a Shareholder's tax basis in Fund shares, and
thereafter as capital gain. A return of capital is not taxable, but it reduces
the Shareholder's tax basis in the shares, thus reducing any loss or increasing
any gain on a subsequent taxable disposition of those shares. The Fifth Third
Strategic Income Fund is particularly susceptible to this possibility because it
may, at times in its discretion, pay out less than the entire amount of net
investment income earned in any particular period and may at times pay out such
accumulated undistributed income in addition to net investment income earned in
other periods in order to permit the Fund to maintain a more stable level of
distributions. As a result, the dividend paid by the Fund to shareholders for
any particular period may be more or less than the amount of net investment
income earned by the Fund during such period. The Fund is not required to
maintain a stable level of distributions to shareholders.
EXPENSES
- --------------------------------------------------------------------------------
The expenses for investing in funds of funds, like the LifeModel Funds SM, are
generally higher than those for mutual funds that do not invest primarily in
other mutual funds. This is because shareholders in a fund of funds indirectly
pay a portion of the fees and expenses charged at the underlying fund level. To
lessen the impact of expenses incurred at the underlying fund level, the
LifeModel Funds SM invest in Institutional shares of the underlying funds, which
are not subject to any sales charge or distribution/service (12b-1) fees.
128
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
TAXATION
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
TAXATION OF SHAREHOLDER TRANSACTIONS
A sale, exchange or redemption of Fund shares generally will result in a taxable
gain or loss to the shareholder.
TAXATION OF DISTRIBUTIONS
Each Fund expects to distribute substantially all of its investment income
(including net realized capital gains and tax-exempt interest income, if any) to
its shareholders at least annually. Unless otherwise exempt or as discussed
below, shareholders are required to pay federal income tax on any dividends and
other distributions, including capital gains distributions received. This
applies whether dividends and other distributions are received in cash or
reinvested in additional shares. For federal income tax purposes, distributions
of investment income are generally taxable as ordinary income. Taxes on
distributions of capital gains are determined by how long the Fund owned the
investments that generated them, rather than how long a shareholder has owned
his or her shares. Distributions of net capital gain (that is, the excess of net
long-term capital gains over net short-term capital losses) from the sale of
investments that the Fund owned for more than one year and that are properly
designated by the Fund as capital gain dividends will be taxable as long-term
capital gains. Distributions of gains from the sale of investments that the Fund
owned for one year or less will be taxable as ordinary income. Distributions of
investment income designated by the Fund as derived from "qualified dividend
income" will be taxed at the rates applicable to long-term capital gains,
provided holding period and other requirements are met at both the Shareholder
and Fund level. The fixed income funds do not expect a significant portion of
Fund distributions to be derived from qualified dividend income. An Asset
Allocation Fund will not be able to offset gains realized by one Fund in which
it invests against losses realized by another Fund in which it invests until it
disposes of shares of the Fund that realized such losses. The use of a
fund-of-funds structure could therefore affect the amount, timing and character
of distributions to shareholders and increase the amount of taxes payable by
shareholders. Distributions are taxable to shareholders even if they are paid
from income or gains earned by a Fund before a shareholder's investment (and
thus were included in the price paid). See the Statement of Additional
Information for further details.
FOREIGN INVESTMENTS
If a Fund invests in foreign securities, please note that investment income
received by the Fund from sources within foreign countries may be subject to
foreign taxes withheld at the source which may decrease the yield of such
investments. The United States has entered into tax treaties with many foreign
countries that entitle the Fund to reduce tax rates or exemption on this income.
The effective rate of foreign tax cannot be predicted since the amount of the
Fund's assets to be invested within various countries is unknown. However, Fifth
Third International Equity Fund intends to operate so as to qualify for
treaty-reduced tax rates where applicable.
Fifth Third International Equity Fund intends to qualify so as to be eligible to
elect to "pass through" to its shareholders foreign income taxes that it pays.
If Fifth Third International Equity Fund makes that election, a shareholder must
include its share of those taxes in gross income as a distribution from the Fund
and will be allowed to claim a credit (or a deduction, if that shareholder
itemizes deductions) for such amounts on its U.S. federal income tax return,
subject to certain limitations. In general, shareholders in other Funds
investing in foreign securities will not be entitled to claim a credit or
deduction for foreign taxes on their U.S. federal income tax returns. There are,
some exceptions, however. Shareholders should consult their tax advisors for
more information with respect to their individual circumstances.
In addition, foreign investment may prompt a Fund to distribute ordinary income
more frequently or in greater amounts than purely domestic funds, which could
increase a shareholder's tax liability.
ADDITIONAL TAX INFORMATION FOR FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND, FIFTH
THIRD OHIO MUNICIPAL BOND FUND, FIFTH THIRD MUNICIPAL BOND FUND, FIFTH THIRD
INTERMEDIATE MUNICIPAL BOND, FIFTH THIRD MICHIGAN MUNICIPAL MONEY MARKET FUND,
AND FIFTH THIRD MUNICIPAL MONEY MARKET FUND ("MUNICIPAL SECURITIES FUNDS").
If, at the end of each quarter of its taxable year, at least 50% of the value of
a Fund's assets consists of obligations the interest on which is exempt from
federal income tax, the Fund may pay "exempt-interest dividends" to its
shareholders. Generally, exempt-interest dividends will be excluded from gross
income for federal income tax purposes but may be subject to federal alternative
minimum tax and state and local taxes. Exempt-interest dividends attributable to
investments in certain "private activity" bonds will be treated as tax
preference items in computing the alternative minimum tax. Also, a portion of
all other exempt-interest dividends earned by a corporation may be subject to
the alternative minimum tax.
129
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
If a shareholder receives an exempt-interest dividend with respect to any share
and such share is held by the shareholder for six months or less, any loss on
the sale or exchange of such share will be disallowed to the extent of the
amount of such exempt-interest dividend. In certain limited instances, the
portion of Social Security or Railroad Retirement benefits that may be subject
to federal income taxation may be affected by the amount of tax-exempt interest
income, include exempt-interest dividends, received by a shareholder.
Shareholders who receive Social Security or Railroad Retirement benefits should
consult their tax advisors to determine what effect, if any, an investment in
the Funds may have on the federal taxation of their benefits.
Interest income from certain types of municipal securities may be subject to
federal alternative minimum tax. To the extent a Fund invests in those
securities, individual shareholders, depending on their own tax status, may be
subject to alternative minimum tax on that part of the Fund's distributions
derived from those securities.
Distributions, if any, derived from net capital gains will generally be taxable
to shareholders as long-term capital gains. The "Municipal Securities Funds" may
pay such capital gains distributions from time to time. Dividends, if any,
derived from taxable interest income and any distributions of short-term capital
gains will be taxable to shareholders as ordinary income.
The Municipal Securities Funds may invest as much as 100% of their assets in
municipal securities issued to finance private activities, the interest on which
is a tax preference item for purposes of the alternative minimum tax.
Interest on indebtedness incurred by a shareholder to purchase or carry shares
of the Municipal Securities Funds generally will not be deductible for federal
income tax purposes.
STATE AND LOCAL TAXES
Shareholders may also be subject to state and local taxes on distributions and
redemptions. Under state or local law, distributions of investment income may be
taxable to shareholders as dividend income even though a substantial portion of
such distribution may be derived from interest excluded from gross income for
federal income tax purposes that, if received directly, would be exempt from
such income taxes. State laws differ on this issue, and shareholders are urged
to consult their own tax advisors regarding the taxation of their investments
under state and local tax laws.
Dividends from Fifth Third Ohio Municipal Bond Fund representing interest on
obligations held by that Fund which are issued by the State of Ohio, political
or governmental subdivisions thereof as defined in Section 5709.76(D)(10) of the
Ohio Revised Code, or nonprofit corporations authorized to issue public
securities for or on behalf of Ohio or a subdivision or agencies or
instrumentalities of Ohio or its political subdivisions ("Ohio Obligations") are
exempt from Ohio personal income tax as well as Ohio municipal or school
district income taxes. Corporate shareholders that are subject to the Ohio
corporation franchise tax may exclude such dividends from the Fund from the net
income base of the Ohio corporation franchise tax.
Distributions with respect to shares of the Fifth Third Ohio Municipal Bond Fund
properly attributable to profit on the sale, exchange or other disposition of
Ohio Obligations will not be subject to Ohio personal income tax, the Ohio
commercial activity tax, or municipal or school district income taxes in Ohio
and will not be included in the net income base of the Ohio corporation
franchise tax. Distributions attributable to other sources generally will not be
exempt from Ohio personal income tax, municipal or school district income taxes
in Ohio or the net income base of the Ohio corporation franchise tax.
Although the Fund distributions described above attributable to interest on, and
any profit from the sale, exchange or other disposition of, Ohio Obligations are
excludable from the net income base of the Ohio corporation franchise tax, the
value of all Fund shares may be included in the net worth base of the Ohio
corporation franchise tax.
This discussion of Ohio taxes assumes that the Fifth Third Ohio Municipal Bond
Fund will continue to qualify as a regulated investment company under the
Internal Revenue Code and that at all times at least 50% of the value of the
total assets of the Fund consists of Ohio Obligations or similar obligations of
other states or their subdivisions.
Because the Fifth Third Michigan Municipal Money Market Fund and the Michigan
Municipal Bond Fund intend to invest substantially all of their assets in
tax-exempt obligations of the State of Michigan or its political subdivisions,
shareholders who are subject to Michigan state income tax will generally not be
subject to tax on dividends paid by these Funds to the extent that the dividends
are attributable to interest income from these obligations. Shareholders should
consult their tax advisors regarding the tax status of distributions in their
state and locality.
130
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
This is a brief summary of certain income tax consequences relating to an
investment in the Funds. The Statement of Additional Information provides
further details regarding taxation. Shareholders are urged to consult their own
tax advisors regarding the taxation of their investments under federal, state
and local laws.
ADDITIONAL COMPENSATION TO SERVICING AGENTS
The Advisor and/or its affiliates may pay amounts from their own assets to
selling or servicing agents of the Funds for distribution-related activities,
shareholder servicing, or other services they provide. These amounts may be
fixed dollar amounts, a percentage of sales, a percentage of assets, or any
combination thereof, and may be up-front or ongoing payments or both. Agents may
agree to provide a variety of shareholder servicing services, marketing related
services, or access advantages to the Funds, including, for example, presenting
the Funds on "approved" or "select" lists, in return for these payments. Selling
or servicing agents, in turn, may pay some or all of these amounts to their
employees who recommend or sell Fund shares or allocate or invest client assets
among different investment options.
In addition, the Advisor and/or its affiliates may pay amounts from their own
assets for services provided and costs incurred by third parties that are of a
type that would typically be provided or incurred directly by Fifth Third Funds'
transfer agent. The Fifth Third Funds also may pay amounts to third party
intermediaries, including selling and servicing agents, for providing these
types of services or incurring these types of costs.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The financial highlights table is intended to help you understand the Funds'
financial performance for the past five years or the period of each Fund's
operations, if shorter. Certain information reflects financial results for a
single Fund share. The total returns in the tables represent the rate that an
investor would have earned or lost on an investment in a Fund (assuming
reinvestment of all dividends and distributions). The information for the Funds
has been audited by PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP's
report, along with the Funds' financial statements, is incorporated by reference
in the SAI, which is available upon request.
131
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $17.71 (0.07) (3.56) (3.63) -- (0.56)
Year ended 7/31/03 $13.52 (0.06) 2.19 2.13 -- --
Year ended 7/31/04 $15.65 (0.17)@ 1.43 1.26 -- (1.73)
Year ended 7/31/05 $15.18 (0.14)@ 3.00 2.86 -- (2.87)
Year ended 7/31/06 $15.17 (0.14)@ 0.49 0.35 -- (1.87)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $16.54 (0.05) (2.34) (2.39) -- (0.56)
Year ended 7/31/03 $13.59 (0.14) 2.16 2.02 -- --
Year ended 7/31/04 $15.61 (0.29)@ 1.43 1.14 -- (1.73)
Year ended 7/31/05 $15.02 (0.24)@ 2.94 2.70 -- (2.87)
Year ended 7/31/06 $14.85 (0.25)@ 0.48 0.23 -- (1.87)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $16.54 (0.11) (2.28) (2.39) -- (0.56)
Year ended 7/31/03 $13.59 (0.14) 2.17 2.03 -- --
Year ended 7/31/04 $15.62 (0.29)@ 1.43 1.14 -- (1.73)
Year ended 7/31/05 $15.03 (0.24)@ 2.94 2.70 -- (2.87)
Year ended 7/31/06 $14.86 (0.25)@ 0.49 0.24 -- (1.87)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $16.54 (0.03) (2.31) (2.34) -- (0.56)
Year ended 7/31/03 $13.64 (0.06) 2.17 2.11 -- --
Year ended 7/31/04 $15.75 (0.21)@ 1.44 1.23 -- (1.73)
Year ended 7/31/05 $15.25 (0.17)@ 3.00 2.83 -- (2.87)
Year ended 7/31/06 $15.21 (0.18)@ 0.49 0.31 -- (1.87)
- --------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $14.94 (0.09) (4.27) (4.36) -- (0.47)
Year ended 7/31/03 $10.11 (0.09)@ 1.80 1.71 -- --
Year ended 7/31/04 $11.82 (0.12) 1.02 0.90 -- --
Year ended 7/31/05 $12.72 (0.05) 3.02 2.97 -- --
Year ended 7/31/06 $15.69 (0.08)@ 0.76 0.68 (0.01) (0.19)
- --------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $14.86 (0.14) (4.27) (4.41) -- (0.47)
Year ended 7/31/03 $ 9.98 (0.17)@ 1.78 1.61 -- --
Year ended 7/31/04 $11.59 (0.21) 1.00 0.79 -- --
Year ended 7/31/05 $12.38 (0.15) 2.93 2.78 -- --
Year ended 7/31/06 $15.16 (0.20)@ 0.73 0.53 -- (0.19)
- --------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $14.36 (0.18) (4.08) (4.26) -- (0.47)
Year ended 7/31/03 $ 9.63 (0.16)@ 1.70 1.54 -- --
Year ended 7/31/04 $11.17 (0.21) 0.98 0.77 -- --
Year ended 7/31/05 $11.94 (0.16) 2.83 2.67 -- --
Year ended 7/31/06 $14.61 (0.19)@ 0.71 0.52 -- (0.19)
- --------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $13.47 (0.04) (2.87) (2.91) -- (0.47)
Year ended 7/31/03 $10.09 (0.12)@ 1.81 1.69 -- --
Year ended 7/31/04 $11.78 (0.12) 0.99 0.87 -- --
Year ended 7/31/05 $12.65 (0.07) 2.98 2.91 -- --
Year ended 7/31/06 $15.56 (0.12)@ 0.75 0.63 -- (0.19)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 (0.56) $13.52 (21.15%)
Year ended 7/31/03 -- $15.65 15.75%
Year ended 7/31/04 (1.73) $15.18 7.16%
Year ended 7/31/05 (2.87) $15.17 20.45%
Year ended 7/31/06 (1.87) $13.65 2.50%
- ------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.56) $13.59 (13.01%)*
Year ended 7/31/03 -- $15.61 14.86%
Year ended 7/31/04 (1.73) $15.02 6.30%
Year ended 7/31/05 (2.87) $14.85 19.51%
Year ended 7/31/06 (1.87) $13.21 1.69%
- ------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.56) $13.59 (13.01%)*
Year ended 7/31/03 -- $15.62 14.94%
Year ended 7/31/04 (1.73) $15.03 6.29%
Year ended 7/31/05 (2.87) $14.86 19.57%
Year ended 7/31/06 (1.87) $13.23 1.75%
- ------------------------------------------------------------------------------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.56) $13.64 (12.69%)*
Year ended 7/31/03 -- $15.75 15.47%
Year ended 7/31/04 (1.73) $15.25 6.84%
Year ended 7/31/05 (2.87) $15.21 20.13%
Year ended 7/31/06 (1.87) $13.65 2.20%
- ------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 (0.47) $10.11 (30.21%)
Year ended 7/31/03 -- $11.82 17.03%
Year ended 7/31/04 -- $12.72 7.61%
Year ended 7/31/05 -- $15.69 23.35%
Year ended 7/31/06 (0.20) $16.17 4.34%
- ------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
Year ended 7/31/02 (0.47) $ 9.98 (30.65%)
Year ended 7/31/03 -- $11.59 16.13%
Year ended 7/31/04 -- $12.38 6.82%
Year ended 7/31/05 -- $15.16 22.46%
Year ended 7/31/06 (0.19) $15.50 3.51%
- ------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/02 (0.47) $ 9.63 (30.67%)
Year ended 7/31/03 -- $11.17 15.99%
Year ended 7/31/04 -- $11.94 6.89%
Year ended 7/31/05 -- $14.61 22.36%
Year ended 7/31/06 (0.19) $14.94 3.57%
- ------------------------------------------------------------------------------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.47) $10.09 (19.75%)*
Year ended 7/31/03 -- $11.78 16.75%
Year ended 7/31/04 -- $12.65 7.39%
Year ended 7/31/05 -- $15.56 23.00%
Year ended 7/31/06 (0.19) $16.00 4.07%
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- --------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $16,468 1.18% (0.46%) 1.21% 25%
Year ended 7/31/03 $16,471 1.19% (0.42%) 1.23% 63%
Year ended 7/31/04 $25,921 1.25% (0.99%) 1.25% 95%
Year ended 7/31/05 $22,714 1.26% (0.93%) 1.26% 65%
Year ended 7/31/06 $17,783 1.27% (0.99%) 1.28% 67%
- --------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 872 1.93%** (1.25%)** 1.98%** 25%
Year ended 7/31/03 $ 1,407 1.94% (1.17%) 1.98% 63%
Year ended 7/31/04 $ 1,784 2.00% (1.74%) 2.00% 95%
Year ended 7/31/05 $ 1,805 2.01% (1.68%) 2.01% 65%
Year ended 7/31/06 $ 1,414 2.02% (1.74%) 2.03% 67%
- --------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 346 1.93%** (1.26%)** 1.97%** 25%
Year ended 7/31/03 $ 436 1.93% (1.16%) 1.98% 63%
Year ended 7/31/04 $ 810 2.00% (1.74%) 2.00% 95%
Year ended 7/31/05 $ 618 2.01% (1.68%) 2.01% 65%
Year ended 7/31/06 $ 384 2.02% (1.75%) 2.03% 67%
- --------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 220 1.43%** (0.74%)** 1.48%** 25%
Year ended 7/31/03 $ 469 1.44% (0.66%) 1.48% 63%
Year ended 7/31/04 $ 1,173 1.51% (1.26%) 1.51% 95%
Year ended 7/31/05 $ 1,195 1.51% (1.18%) 1.51% 65%
Year ended 7/31/06 $ 671 1.52% (1.25%) 1.53% 67%
- --------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $30,165 1.36% (0.74%) 1.39% 27%
Year ended 7/31/03 $35,504 1.35% (0.89%) 1.35% 25%
Year ended 7/31/04 $49,586 1.34% (0.93%) 1.34% 83%
Year ended 7/31/05 $41,921 1.34% (0.29%) 1.34% 54%
Year ended 7/31/06 $34,437 1.33% (0.49%) 1.33% 69%
- --------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $ 5,008 2.12% (1.51%) 2.15% 27%
Year ended 7/31/03 $ 5,846 2.10% (1.64%) 2.10% 25%
Year ended 7/31/04 $ 6,730 2.09% (1.68%) 2.09% 83%
Year ended 7/31/05 $ 6,874 2.09% (1.03%) 2.09% 54%
Year ended 7/31/06 $ 6,507 2.08% (1.24%) 2.08% 69%
- --------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $ 1,061 2.12% (1.49%) 2.14% 27%
Year ended 7/31/03 $ 1,525 2.10% (1.64%) 2.10% 25%
Year ended 7/31/04 $ 1,700 2.09% (1.68%) 2.09% 83%
Year ended 7/31/05 $ 1,600 2.09% (1.03%) 2.09% 54%
Year ended 7/31/06 $ 1,122 2.08% (1.22%) 2.08% 69%
- --------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 145 1.68%** (1.06%)** 1.71%** 27%
Year ended 7/31/03 $ 240 1.60% (1.14%) 1.60% 25%
Year ended 7/31/04 $ 962 1.59% (1.17%) 1.59% 83%
Year ended 7/31/05 $ 1,218 1.59% (0.52%) 1.59% 54%
Year ended 7/31/06 $ 813 1.58% (0.72%) 1.58% 69%
- --------------------------------------------------------------------------------------------------
Spread 132-133
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $18.33 (0.08) (4.89) (4.97) -- (0.59)
Year ended 7/31/03 $12.77 (0.02) 1.29 1.27 -- --
Year ended 7/31/04 $14.04 (0.08) 0.42 0.34 -- --
Year ended 7/31/05 $14.38 (0.02) 1.72 1.70 (0.03) --
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)
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)
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)
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) --
Year ended 7/31/06 $15.92 (0.11)@ (0.62) (0.73) -- --
- --------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 7/31/02 $15.02 0.05 (3.62) (3.57) (0.07) (0.31)
Year ended 7/31/03 $11.07 0.08 0.64 0.72 (0.09) --
Year ended 7/31/04 $11.70 0.07 1.36 1.43 (0.09) --
Year ended 7/31/05 $13.04 0.14 1.73 1.87 (0.14) (0.35)
Year ended 7/31/06 $14.42 0.13 0.71 0.84 (0.12) (0.18)
- --------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $13.86 0.02 (2.41) (2.39) (0.04) (0.31)
Year ended 7/31/03 $11.12 --^ 0.65 0.65 (0.02) --
Year ended 7/31/04 $11.75 (0.02) 1.36 1.34 (0.01) --
Year ended 7/31/05 $13.08 0.04 1.74 1.78 (0.05) (0.35)
Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18)
- --------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $13.86 0.03 (2.40) (2.37) (0.03) (0.31)
Year ended 7/31/03 $11.15 0.01 0.63 0.64 (0.03) --
Year ended 7/31/04 $11.76 (0.01) 1.35 1.34 (0.02) --
Year ended 7/31/05 $13.08 0.03 1.74 1.77 (0.04) (0.35)
Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18)
- --------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $14.61 0.09 0.73 0.82 (0.09) (0.18)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/02 (0.59) $12.77 (28.08%)
Year ended 7/31/03 -- $14.04 9.95%
Year ended 7/31/04 -- $14.38 2.42%
Year ended 7/31/05 (0.03) $16.05 11.83%
Year ended 7/31/06 -- $15.36 (4.30%)
- ------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS B SHARES
Year ended 7/31/02 (0.59) $12.60 (28.63%)
Year ended 7/31/03 -- $13.75 9.13%
Year ended 7/31/04 -- $13.99 1.75%
Year ended 7/31/05 --^ $15.52 10.95%
Year ended 7/31/06 -- $14.74 (5.03%)
- ------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/02 (0.59) $12.28 (28.62%)
Year ended 7/31/03 -- $13.40 9.12%
Year ended 7/31/04 -- $13.63 1.72%
Year ended 7/31/05 --^ $15.12 10.95%
Year ended 7/31/06 -- $14.36 (5.03%)
- ------------------------------------------------------------------------------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.59) $12.75 (19.05%)*
Year ended 7/31/03 -- $13.98 9.65%
Year ended 7/31/04 -- $14.29 2.22%
Year ended 7/31/05 (0.02) $15.92 11.57%
Year ended 7/31/06 -- $15.19 (4.59%)
- ------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 7/31/02 (0.38) $11.07 (24.25%)
Year ended 7/31/03 (0.09) $11.70 6.56%
Year ended 7/31/04 (0.09) $13.04 12.21%
Year ended 7/31/05 (0.49) $14.42 14.58%
Year ended 7/31/06 (0.30) $14.96 5.84%
- ------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.35) $11.12 (15.86%)*
Year ended 7/31/03 (0.02) $11.75 5.90%
Year ended 7/31/04 (0.01) $13.08 11.47%
Year ended 7/31/05 (0.40) $14.46 13.67%
Year ended 7/31/06 (0.21) $14.98 5.07%
- ------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.34) $11.15 (15.66%)*
Year ended 7/31/03 (0.03) $11.76 5.72%
Year ended 7/31/04 (0.02) $13.08 11.38%
Year ended 7/31/05 (0.39) $14.46 13.73%
Year ended 7/31/06 (0.21) $14.98 5.07%
- ------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.27) $15.16 5.63%
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------
RATIOS OF RATIOS OF
NET EXPENSES RATIOS OF NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- --------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS A SHARES
Year ended 7/31/02 $221,972 1.34% (0.49%) 1.34% 20%
Year ended 7/31/03 $211,221 1.33% (0.19%) 1.33% 19%
Year ended 7/31/04 $220,904 1.32% (0.49%) 1.32% 35%
Year ended 7/31/05 $165,836 1.33% (0.08%) 1.33% 71%
Year ended 7/31/06 $114,828 1.33% (0.42%) 1.33% 108%
- --------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS B SHARES
Year ended 7/31/02 $ 19,678 2.10% (1.25%) 2.10% 20%
Year ended 7/31/03 $ 20,700 2.08% (0.94%) 2.08% 19%
Year ended 7/31/04 $ 20,947 2.07% (1.24%) 2.07% 35%
Year ended 7/31/05 $ 17,791 2.08% (0.85%) 2.08% 71%
Year ended 7/31/06 $ 13,259 2.08% (1.18%) 2.08% 108%
- --------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND CLASS C SHARES
Year ended 7/31/02 $ 8,044 2.09% (1.24%) 2.09% 20%
Year ended 7/31/03 $ 8,380 2.08% (0.94%) 2.08% 19%
Year ended 7/31/04 $ 7,536 2.07% (1.24%) 2.07% 35%
Year ended 7/31/05 $ 5,238 2.08% (0.83%) 2.08% 71%
Year ended 7/31/06 $ 3,199 2.08% (1.17%) 2.08% 108%
- --------------------------------------------------------------------------------------------------
QUALITY GROWTH FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 366 1.69%** (0.80%)** 1.69%** 20%
Year ended 7/31/03 $ 1,205 1.58% (0.48%) 1.58% 19%
Year ended 7/31/04 $ 3,127 1.57% (0.75%) 1.57% 35%
Year ended 7/31/05 $ 3,257 1.58% (0.38%) 1.58% 71%
Year ended 7/31/06 $ 1,877 1.58% (0.67%) 1.58% 108%
- --------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS A SHARES
Year ended 7/31/02 $ 23,320 1.18% 0.38% 1.22% 5%
Year ended 7/31/03 $ 21,288 1.17% 0.72% 1.24% 13%
Year ended 7/31/04 $ 25,573 1.17% 0.58% 1.29% 101%
Year ended 7/31/05 $ 24,026 1.17% 0.99% 1.31% 102%
Year ended 7/31/06 $ 20,923 1.17% 0.85% 1.27% 126%
- --------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $ 361 1.93%** (0.36%)** 1.99%** 5%
Year ended 7/31/03 $ 557 1.92% (0.05%) 1.98% 13%
Year ended 7/31/04 $ 783 1.92% (0.17%) 2.04% 101%
Year ended 7/31/05 $ 1,007 1.92% 0.18% 2.06% 102%
Year ended 7/31/06 $ 953 1.92% 0.09% 2.03% 126%
- --------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $ 20 1.90%** (0.12%)** 1.97%** 5%
Year ended 7/31/03 $ 29 1.92% (0.04%) 1.99% 13%
Year ended 7/31/04 $ 158 1.92% (0.23%) 2.03% 101%
Year ended 7/31/05 $ 193 1.92% 0.21% 2.06% 102%
Year ended 7/31/06 $ 112 1.92% 0.13% 2.02% 126%
- --------------------------------------------------------------------------------------------------
LARGE CAP CORE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 3 1.42% 0.58% 1.57% 126%
- --------------------------------------------------------------------------------------------------
Spread 134-135
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
Year ended 7/31/02 $23.10 0.17 (5.69) (5.52) (0.20) --
Year ended 7/31/03 $17.38 0.20 1.50 1.70 (0.21) --
Year ended 7/31/04 $18.87 0.25@ 2.10 2.35 (0.28) --
Year ended 7/31/05 $20.94 0.37@ 2.46 2.83 (0.39) --
Year ended 7/31/06 $23.38 0.36@ 0.80 1.16 (0.38) --
- --------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $21.07 0.06 (3.69) (3.63) (0.12) --
Year ended 7/31/03 $17.32 0.07 1.50 1.57 (0.11) --
Year ended 7/31/04 $18.78 0.09@ 2.09 2.18 (0.13) --
Year ended 7/31/05 $20.83 0.20@ 2.44 2.64 (0.23) --
Year ended 7/31/06 $23.24 0.18@ 0.79 0.97 (0.20) --
- --------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $21.07 0.10 (3.73) (3.63) (0.11) --
Year ended 7/31/03 $17.33 0.08 1.49 1.57 (0.12) --
Year ended 7/31/04 $18.78 0.09@ 2.10 2.19 (0.13) --
Year ended 7/31/05 $20.84 0.20@ 2.44 2.64 (0.22) --
Year ended 7/31/06 $23.26 0.18@ 0.78 0.96 (0.19) --
- --------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $21.07 0.13 (3.67) (3.54) (0.14) --
Year ended 7/31/03 $17.39 0.18 1.48 1.66 (0.19) --
Year ended 7/31/04 $18.86 0.20@ 2.10 2.30 (0.24) --
Year ended 7/31/05 $20.92 0.31@ 2.45 2.76 (0.33) --
Year ended 7/31/06 $23.35 0.30@ 0.79 1.09 (0.31) --
- --------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
Year ended 7/31/02(e) $13.35 0.12 (2.27) (2.15) (0.14) (0.20)
Year ended 7/31/03 $10.86 0.13 0.48 0.61 (0.15) --
Year ended 7/31/04 $11.32 0.10 0.63 0.73 (0.12) --
Year ended 7/31/05 $11.93 0.21 0.79 1.00 (0.22) --
Year ended 7/31/06 $12.71 0.22 (0.43) (0.21) (0.22) --
- --------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
Year ended 7/31/02(e) $13.28 0.02 (2.24) (2.22) (0.11) (0.20)
Year ended 7/31/03 $10.75 0.04 0.48 0.52 (0.08) --
Year ended 7/31/04 $11.19 0.01 0.63 0.64 (0.03) --
Year ended 7/31/05 $11.80 0.11 0.79 0.90 (0.13) --
Year ended 7/31/06 $12.57 0.12 (0.44) (0.32) (0.12) --
- --------------------------------------------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
Year ended 7/31/02(e) $13.26 0.02 (2.24) (2.22) (0.11) (0.20)
Year ended 7/31/03 $10.73 0.04 0.48 0.52 (0.08) --
Year ended 7/31/04 $11.17 0.01 0.63 0.64 (0.03) --
Year ended 7/31/05 $11.78 0.11 0.79 0.90 (0.13) --
Year ended 7/31/06 $12.55 0.12 (0.44) (0.32) (0.12) --
- --------------------------------------------------------------------------------------------------------------------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) $12.58 0.07 (1.50) (1.43) (0.11) (0.20)
Year ended 7/31/03 $10.84 0.10 0.49 0.59 (0.13) --
Year ended 7/31/04 $11.30 0.06 0.64 0.70 (0.09) --
Year ended 7/31/05 $11.91 0.17 0.79 0.96 (0.19) --
Year ended 7/31/06 $12.68 0.18 (0.43) (0.25) (0.18) --
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS A SHARES
Year ended 7/31/02 (0.20) $17.38 (24.03%)
Year ended 7/31/03 (0.21) $18.87 9.90%
Year ended 7/31/04 (0.28) $20.94 12.48%
Year ended 7/31/05 (0.39) $23.38 13.58%
Year ended 7/31/06 (0.38) $24.16 4.97%
- ------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.12) $17.32 (15.32%)*
Year ended 7/31/03 (0.11) $18.78 9.14%
Year ended 7/31/04 (0.13) $20.83 11.64%
Year ended 7/31/05 (0.23) $23.24 12.74%
Year ended 7/31/06 (0.20) $24.01 4.17%
- ------------------------------------------------------------------------------
EQUITY INDEX FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.11) $17.33 (15.30%)*
Year ended 7/31/03 (0.12) $18.78 9.14%
Year ended 7/31/04 (0.13) $20.84 11.66%
Year ended 7/31/05 (0.22) $23.26 12.72%
Year ended 7/31/06 (0.19) $24.03 4.15%
- ------------------------------------------------------------------------------
EQUITY INDEX FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.14) $17.39 (14.89%)*
Year ended 7/31/03 (0.19) $18.86 9.68%
Year ended 7/31/04 (0.24) $20.92 12.21%
Year ended 7/31/05 (0.33) $23.35 13.28%
Year ended 7/31/06 (0.31) $24.13 4.70%
- ------------------------------------------------------------------------------
BALANCED FUND CLASS A SHARES
Year ended 7/31/02(e) (0.34) $10.86 (16.53%)
Year ended 7/31/03 (0.15) $11.32 5.57%
Year ended 7/31/04 (0.12) $11.93 6.52%
Year ended 7/31/05 (0.22) $12.71 8.41%
Year ended 7/31/06 (0.22) $12.28 (1.71%)
- ------------------------------------------------------------------------------
BALANCED FUND CLASS B SHARES
Year ended 7/31/02(e) (0.31) $10.75 (17.14%)
Year ended 7/31/03 (0.08) $11.19 4.87%
Year ended 7/31/04 (0.03) $11.80 5.72%
Year ended 7/31/05 (0.13) $12.57 7.61%
Year ended 7/31/06 (0.12) $12.13 (2.57%)
- ------------------------------------------------------------------------------
BALANCED FUND CLASS C SHARES
Year ended 7/31/02(e) (0.31) $10.73 (17.16%)
Year ended 7/31/03 (0.08) $11.17 4.90%
Year ended 7/31/04 (0.03) $11.78 5.71%
Year ended 7/31/05 (0.13) $12.55 7.62%
Year ended 7/31/06 (0.12) $12.11 (2.56%)
- ------------------------------------------------------------------------------
BALANCED FUND ADVISOR SHARES
10/29/01(d) to 7/31/02(e) (0.31) $10.84 (9.24%)*
Year ended 7/31/03 (0.13) $11.30 5.39%
Year ended 7/31/04 (0.09) $11.91 6.31%
Year ended 7/31/05 (0.19) $12.68 8.08%
Year ended 7/31/06 (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/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
Spread 136-137
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03 -- --
1/1/02 to 7/31/02(c) $ 5.96 (0.02) (0.12) (0.14) -- --
Year ended 7/31/03 $ 5.82 (0.06)@ 2.37 2.31 -- (0.05)
Year ended 7/31/04 $ 8.08 (0.05)@ 2.63 2.58 -- (0.52)
Year ended 7/31/05 $10.14 (0.03)@ 1.39 1.36 -- (0.72)
Year ended 7/31/06 $10.78 --^@ 0.15 0.15 --^ (3.13)
- --------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.03 0.02 -- --
1/1/02 to 7/31/02(c) $ 5.95 (0.03) (0.13) (0.16) -- --
Year ended 7/31/03 $ 5.79 (0.10)@ 2.33 2.23 -- (0.05)
Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51 -- (0.52)
Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32 -- (0.72)
Year ended 7/31/06 $10.56 (0.06)@ 0.15 0.09 -- (3.13)
- --------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03 -- --
1/1/02 to 7/31/02(c) $ 5.96 (0.03) (0.14) (0.17) -- --
Year ended 7/31/03 $ 5.79 (0.10)@ 2.33 2.23 -- (0.05)
Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51 -- (0.52)
Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32 -- (0.72)
Year ended 7/31/06 $10.56 (0.06)@ 0.15 0.09 -- (3.13)
- --------------------------------------------------------------------------------------------------------------------
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 -- (0.05)
Year ended 7/31/04 $ 8.05 (0.06)@ 2.62 2.56 -- (0.52)
Year ended 7/31/05 $10.09 (0.03)@ 1.37 1.34 -- (0.72)
Year ended 7/31/06 $10.71 (0.03)@ 0.16 0.13 -- (3.13)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 $15.00 (0.01) 2.53 2.52 -- --
Year ended 7/31/04 $17.52 (0.11)@ 3.52 3.41 --^ (0.98)
Year ended 7/31/05 $19.95 (0.10)@ 4.49 4.39 -- (1.66)
Year ended 7/31/06 $22.68 0.02 0.47 0.49 -- (2.43)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS B SHARES
4/1/03(d) to 7/31/03 $15.00 (0.03) 2.51 2.48 -- --
Year ended 7/31/04 $17.48 (0.25)@ 3.51 3.26 -- (0.98)
Year ended 7/31/05 $19.76 (0.24)@ 4.43 4.19 -- (1.66)
Year ended 7/31/06 $22.29 (0.13) 0.45 0.32 -- (2.43)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS C SHARES
4/1/03(d) to 7/31/03 $15.00 (0.03) 2.51 2.48 -- --
Year ended 7/31/04 $17.48 (0.26)@ 3.50 3.24 -- (0.98)
Year ended 7/31/05 $19.74 (0.24)@ 4.41 4.17 -- (1.66)
Year ended 7/31/06 $22.25 (0.14) 0.46 0.32 -- (2.43)
- --------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND ADVISOR SHARES
4/1/03(d) to 7/31/03 $15.00 (0.01) 2.52 2.51 -- --
Year ended 7/31/04 $17.51 (0.16)@ 3.52 3.36 -- (0.98)
Year ended 7/31/05 $19.89 (0.15)@ 4.48 4.33 -- (1.66)
Year ended 7/31/06 $22.56 (0.02) 0.45 0.43 -- (2.43)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------
MICRO CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 -- $ 5.96 0.56%*
1/1/02 to 7/31/02(c) -- $ 5.82 (2.35%)*
Year ended 7/31/03 (0.05) $ 8.08 39.88%
Year ended 7/31/04 (0.52) $10.14 32.56%
Year ended 7/31/05 (0.72) $10.78 13.60%
Year ended 7/31/06 (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) $ 7.97 38.70%
Year ended 7/31/04 (0.52) $ 9.96 32.13%
Year ended 7/31/05 (0.72) $10.56 13.54%
Year ended 7/31/06 (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) $ 7.97 38.70%
Year ended 7/31/04 (0.52) $ 9.96 32.13%
Year ended 7/31/05 (0.72) $10.56 13.54%
Year ended 7/31/06 (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) $ 8.05 39.60%
Year ended 7/31/04 (0.52) $10.09 32.44%
Year ended 7/31/05 (0.72) $10.71 13.57%
Year ended 7/31/06 (3.13) $ 7.71 1.30%
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND CLASS A SHARES
4/1/03(d) to 7/31/03 -- $17.52 16.73%*
Year ended 7/31/04 (0.98) $19.95 19.81%
Year ended 7/31/05 (1.66) $22.68 23.24%
Year ended 7/31/06 (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) $19.76 19.02%
Year ended 7/31/05 (1.66) $22.29 22.35%
Year ended 7/31/06 (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) $19.74 18.85%
Year ended 7/31/05 (1.66) $22.25 22.39%
Year ended 7/31/06 (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) $19.89 19.52%
Year ended 7/31/05 (1.66) $22.56 23.00%
Year ended 7/31/06 (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 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 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%
- --------------------------------------------------------------------------------------------------
Spread 138-139
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- ---------------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET RETURN
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED OF
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS CAPITAL
- ---------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 $19.44 0.01 0.57 0.58 (0.06) (0.91) --
1/1/02 to 7/31/02(c) $19.05 (0.02) (3.26) (3.28) -- -- --
Year ended 7/31/03 $15.77 --^ 3.08 3.08 -- -- --
Year ended 7/31/04 $18.85 --^ 3.59 3.59 (0.01) (0.07) --
Year ended 7/31/05 $22.36 0.04 4.79 4.83 (0.05) (1.38) --
Year ended 7/31/06 $25.76 0.19 1.77 1.96 (0.18) (2.15) --
- ---------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 $19.44 (0.02) 0.56 0.54 (0.04) (0.91) --
1/1/02 to 7/31/02(c) $19.03 (0.08) (3.26) (3.34) -- -- --
Year ended 7/31/03 $15.69 (0.13) 3.07 2.94 -- -- --
Year ended 7/31/04 $18.63 (0.14) 3.52 3.38 -- (0.07) --
Year ended 7/31/05 $21.94 (0.14) 4.69 4.55 -- (1.38) --
Year ended 7/31/06 $25.11 --^ 1.71 1.71 (0.06) (2.15) --
- ---------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 $19.44 (0.01) 0.55 0.54 (0.04) (0.92) --
1/1/02 to 7/31/02(c) $19.02 (0.08) (3.25) (3.33) -- -- --
Year ended 7/31/03 $15.69 (0.12) 3.04 2.92 -- -- --
Year ended 7/31/04 $18.61 (0.13) 3.52 3.39 -- (0.07) --
Year ended 7/31/05 $21.93 (0.15) 4.69 4.54 -- (1.38) --
Year ended 7/31/06 $25.09 --^ 1.71 1.71 (0.06) (2.15) --
- ---------------------------------------------------------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/01 $18.61 0.02 1.37 1.39 -- (0.91) --
1/1/02 to 7/31/02(c) $19.09 (0.04) (3.27) (3.31) -- -- --
Year ended 7/31/03 $15.78 (0.05) 3.09 3.04 -- -- --
Year ended 7/31/04 $18.82 (0.05) 3.59 3.54 -- (0.07) --
Year ended 7/31/05 $22.29 (0.02) 4.77 4.75 (0.01) (1.38) --
Year ended 7/31/06 $25.65 0.13 1.75 1.88 (0.12) (2.15) --
- ---------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/02 $13.11 0.07 (1.74) (1.67) (0.08) (0.53) --
Year ended 7/31/03 $10.83 0.16@ 1.14 1.30 (0.14) (0.16) --
Year ended 7/31/04 $11.83 0.12 2.08 2.20 (0.13) (0.40) --
Year ended 7/31/05 $13.50 0.14 1.94 2.08 (0.14) (0.39) --
Year ended 7/31/06 $15.05 0.17 1.07 1.24 (0.16) (1.44) --
- ---------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
Year ended 7/31/02 $13.24 (0.02) (1.74) (1.76) (0.02) (0.53) --
Year ended 7/31/03 $10.93 0.08@ 1.15 1.23 (0.07) (0.16) --
Year ended 7/31/04 $11.93 0.03 2.09 2.12 (0.04) (0.40) --
Year ended 7/31/05 $13.61 0.04 1.95 1.99 (0.04) (0.39) --
Year ended 7/31/06 $15.17 0.06 1.08 1.14 (0.06) (1.44) --
- ---------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/02 $13.10 (0.03) (1.73) (1.76) (0.01) (0.53) --
Year ended 7/31/03 $10.80 0.08@ 1.11 1.19 (0.07) (0.16) --
Year ended 7/31/04 $11.76 0.02 2.07 2.09 (0.05) (0.40) --
Year ended 7/31/05 $13.40 0.03 1.94 1.97 (0.04) (0.39) --
Year ended 7/31/06 $14.94 0.06 1.06 1.12 (0.06) (1.44) --
- ---------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
Year ended 7/31/06 (h) $15.05 0.11 1.09 1.20 (0.15) (1.44) --
- ---------------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS A SHARES
8/13/01(d) to 12/31/01 (0.97) $19.05 2.90%*
1/1/02 to 7/31/02(c) -- $15.77 (17.22%)*
Year ended 7/31/03 -- $18.85 19.53%
Year ended 7/31/04 (0.08) $22.36 19.07%
Year ended 7/31/05 (1.43) $25.76 22.22%
Year ended 7/31/06 (2.33) $25.39 8.16%
- ------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS B SHARES
8/13/01(d) to 12/31/01 (0.95) $19.03 2.76%*
1/1/02 to 7/31/02(c) -- $15.69 (17.55%)*
Year ended 7/31/03 -- $18.63 18.74%
Year ended 7/31/04 (0.07) $21.94 18.15%
Year ended 7/31/05 (1.38) $25.11 21.33%
Year ended 7/31/06 (2.21) $24.61 7.33%
- ------------------------------------------------------------------------------
MULTI CAP VALUE FUND CLASS C SHARES
8/13/01(d) to 12/31/01 (0.96) $19.02 2.72%*
1/1/02 to 7/31/02(c) -- $15.69 (17.51%)*
Year ended 7/31/03 -- $18.61 18.61%
Year ended 7/31/04 (0.07) $21.93 18.22%
Year ended 7/31/05 (1.38) $25.09 21.24%
Year ended 7/31/06 (2.21) $24.59 7.33%
- ------------------------------------------------------------------------------
MULTI CAP VALUE FUND ADVISOR SHARES
Year ended 12/31/01 (0.91) $19.09 7.47%
1/1/02 to 7/31/02(c) -- $15.78 (17.34%)*
Year ended 7/31/03 -- $18.82 19.26%
Year ended 7/31/04 (0.07) $22.29 18.81%
Year ended 7/31/05 (1.39) $25.65 21.90%
Year ended 7/31/06 (2.27) $25.26 7.87%
- ------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES
Year ended 7/31/02 (0.61) $10.83 (13.24%)
Year ended 7/31/03 (0.30) $11.83 12.30%
Year ended 7/31/04 (0.53) $13.50 18.96%
Year ended 7/31/05 (0.53) $15.05 15.74%
Year ended 7/31/06 (1.60) $14.69 9.05%
- ------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES
Year ended 7/31/02 (0.55) $10.93 (13.84%)
Year ended 7/31/03 (0.23) $11.93 11.50%
Year ended 7/31/04 (0.44) $13.61 18.07%
Year ended 7/31/05 (0.43) $15.17 14.85%
Year ended 7/31/06 (1.50) $14.81 8.22%
- ------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES
Year ended 7/31/02 (0.54) $10.80 (13.85%)
Year ended 7/31/03 (0.23) $11.76 11.28%
Year ended 7/31/04 (0.45) $13.40 18.07%
Year ended 7/31/05 (0.43) $14.94 14.96%
Year ended 7/31/06 (1.50) $14.56 8.21%
- ------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES
Year ended 7/31/06 (h) (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)
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
Spread 140-141
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $10.00 0.02# 1.33# 1.35 (0.02) --
Year ended 7/31/04 $11.33 0.11# 1.30# 1.41 (0.11) (0.18)
Year ended 7/31/05 $12.45 0.12# 1.95# 2.07 (0.12) (0.08)
Year ended 7/31/06 $14.32 0.17# 0.51# 0.68 (0.16) (0.31)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $10.00 (0.02)# 1.28# 1.26 --^ --
Year ended 7/31/04 $11.26 0.05# 1.27# 1.32 (0.10) (0.18)
Year ended 7/31/05 $12.30 0.03# 1.90# 1.93 (0.07) (0.08)
Year ended 7/31/06 $14.08 0.06# 0.51# 0.57 (0.10) (0.31)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $10.00 (0.01)# 1.28# 1.27 (0.01) --
Year ended 7/31/04 $11.26 0.03# 1.28# 1.31 (0.09) (0.18)
Year ended 7/31/05 $12.30 0.03# 1.90# 1.93 (0.07) (0.08)
Year ended 7/31/06 $14.08 0.06# 0.51# 0.57 (0.10) (0.31)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $14.36 0.15# 0.50# 0.65 (0.16) (0.31)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $10.00 0.07# 1.58# 1.65 (0.07) --
Year ended 7/31/04 $11.58 0.16# 1.04# 1.20 (0.17) (0.14)
Year ended 7/31/05 $12.47 0.19# 1.49# 1.68 (0.18) (0.08)
Year ended 7/31/06 $13.89 0.26# 0.33# 0.59 (0.25) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $10.00 0.02# 1.55# 1.57 (0.02) --
Year ended 7/31/04 $11.55 0.07# 1.03# 1.10 (0.09) (0.14)
Year ended 7/31/05 $12.42 0.09# 1.48# 1.57 (0.08) (0.08)
Year ended 7/31/06 $13.83 0.15# 0.34# 0.49 (0.15) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $10.00 0.02# 1.55# 1.57 (0.02) --
Year ended 7/31/04 $11.55 0.07# 1.02# 1.09 (0.09) (0.14)
Year ended 7/31/05 $12.41 0.09# 1.49# 1.58 (0.08) (0.08)
Year ended 7/31/06 $13.83 0.15# 0.33# 0.48 (0.15) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $13.91 0.24# 0.32# 0.56 (0.25) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $10.00 0.12# 0.92# 1.04 (0.11) --
Year ended 7/31/04 $10.93 0.19# 0.74# 0.93 (0.18) (0.12)
Year ended 7/31/05 $11.56 0.24# 0.96# 1.20 (0.23) (0.03)
Year ended 7/31/06 $12.50 0.30# 0.15# 0.45 (0.30) (0.24)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $10.00 0.06# 0.89# 0.95 (0.06) --
Year ended 7/31/04 $10.89 0.12# 0.73# 0.85 (0.11) (0.12)
Year ended 7/31/05 $11.51 0.14# 0.97# 1.11 (0.14) (0.03)
Year ended 7/31/06 $12.45 0.21# 0.14# 0.35 (0.21) (0.24)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $10.00 0.06# 0.90# 0.96 (0.06) --
Year ended 7/31/04 $10.90 0.12# 0.73# 0.85 (0.12) (0.12)
Year ended 7/31/05 $11.51 0.15# 0.96# 1.11 (0.14) (0.03)
Year ended 7/31/06 $12.45 0.21# 0.14# 0.35 (0.20) (0.24)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $12.52 0.29# 0.11# 0.40 (0.29) (0.24)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.02) $11.33 13.57%*
Year ended 7/31/04 (0.29) $12.45 12.49%
Year ended 7/31/05 (0.20) $14.32 16.59%
Year ended 7/31/06 (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 (0.28) $12.30 11.70%
Year ended 7/31/05 (0.15) $14.08 15.73%
Year ended 7/31/06 (0.41) $14.24 4.10%
- ------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.01) $11.26 12.74%*
Year ended 7/31/04 (0.27) $12.30 11.67%
Year ended 7/31/05 (0.15) $14.08 15.80%
Year ended 7/31/06 (0.41) $14.24 4.11%
- ------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.47) $14.54 4.61%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.07) $11.58 16.51%*
Year ended 7/31/04 (0.31) $12.47 10.32%
Year ended 7/31/05 (0.26) $13.89 13.53%
Year ended 7/31/06 (0.52) $13.96 4.36%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.02) $11.55 15.70%*
Year ended 7/31/04 (0.23) $12.42 9.47%
Year ended 7/31/05 (0.16) $13.83 12.68%
Year ended 7/31/06 (0.42) $13.90 3.63%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.02) $11.55 15.71%*
Year ended 7/31/04 (0.23) $12.41 9.45%
Year ended 7/31/05 (0.16) $13.83 12.75%
Year ended 7/31/06 (0.42) $13.89 3.53%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.52) $13.95 4.11%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.11) $10.93 10.48%*
Year ended 7/31/04 (0.30) $11.56 8.53%
Year ended 7/31/05 (0.26) $12.50 10.43%
Year ended 7/31/06 (0.54) $12.41 3.65%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.06) $10.89 9.58%*
Year ended 7/31/04 (0.23) $11.51 7.80%
Year ended 7/31/05 (0.17) $12.45 9.58%
Year ended 7/31/06 (0.45) $12.35 2.82%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.06) $10.90 9.67%*
Year ended 7/31/04 (0.24) $11.51 7.76%
Year ended 7/31/05 (0.17) $12.45 9.64%
Year ended 7/31/06 (0.44) $12.36 2.88%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.53) $12.39 3.27%
- ------------------------------------------------------------------------------
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 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 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%
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
Spread 142-143
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $10.00 0.15# 0.59# 0.74 (0.14) --
Year ended 7/31/04 $10.60 0.22# 0.53# 0.75 (0.22) (0.20)
Year ended 7/31/05 $10.93 0.25# 0.73# 0.98 (0.24) (0.09)
Year ended 7/31/06 $11.58 0.32# 0.03# 0.35 (0.31) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $10.00 0.10# 0.58# 0.68 (0.10) --
Year ended 7/31/04 $10.58 0.14# 0.53# 0.67 (0.15) (0.20)
Year ended 7/31/05 $10.90 0.17# 0.72# 0.89 (0.16) (0.09)
Year ended 7/31/06 $11.54 0.24# 0.02# 0.26 (0.23) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $10.00 0.09# 0.59# 0.68 (0.09) --
Year ended 7/31/04 $10.59 0.14# 0.52# 0.66 (0.15) (0.20)
Year ended 7/31/05 $10.90 0.17# 0.72# 0.89 (0.16) (0.09)
Year ended 7/31/06 $11.54 0.24# 0.03# 0.27 (0.22) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $11.59 0.25# 0.07# 0.32 (0.31) (0.27)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 $10.00 0.21# 0.51# 0.72 (0.19) --
Year ended 7/31/04 $10.53 0.26# 0.28# 0.54 (0.27) (0.16)
Year ended 7/31/05 $10.64 0.30# 0.34# 0.64 (0.29) (0.09)
Year ended 7/31/06 $10.90 0.37#@ (0.09)# 0.28 (0.37) (0.11)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 $10.00 0.16# 0.49# 0.65 (0.15) --
Year ended 7/31/04 $10.50 0.19# 0.27# 0.46 (0.19) (0.16)
Year ended 7/31/05 $10.61 0.22# 0.34# 0.56 (0.21) (0.09)
Year ended 7/31/06 $10.87 0.29#@ (0.09)# 0.20 (0.29) (0.11)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 $10.00 0.15# 0.50# 0.65 (0.14) --
Year ended 7/31/04 $10.51 0.18# 0.28# 0.46 (0.20) (0.16)
Year ended 7/31/05 $10.61 0.23# 0.34# 0.57 (0.21) (0.09)
Year ended 7/31/06 $10.88 0.29#@ (0.11)# 0.18 (0.28) (0.11)
- --------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) $10.92 0.36#@ (0.12)# 0.24 (0.36) (0.11)
- --------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 $11.65 0.17 (0.54) (0.37) (0.16) --
Year ended 7/31/05 $11.12 0.49 0.38 0.87 (0.47) (0.01)
Year ended 7/31/06 $11.51 0.48@ (0.22) 0.26 (0.49) (0.03)
- --------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 $11.65 0.15 (0.54) (0.39) (0.14) --
Year ended 7/31/05 $11.12 0.40 0.39 0.79 (0.39) (0.01)
Year ended 7/31/06 $11.51 0.40@ (0.23) 0.17 (0.40) (0.03)
- --------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 $10.53 0.16 (0.10) 0.06 (0.09) --
1/1/02 to 7/31/02(c) $10.50 0.27 0.07 0.34 (0.29) --
Year ended 7/31/03 $10.55 0.47 0.24 0.71 (0.44) --
Year ended 7/31/04 $10.82 0.39 0.25 0.64 (0.41) --
Year ended 7/31/05 $11.05 0.39 0.39 0.78 (0.39) (0.01)
Year ended 7/31/06 $11.43 0.40@ (0.23) 0.17 (0.40) (0.03)
- --------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/01 $ 9.95 0.63 0.60 1.23 (0.65) --
1/1/02 to 7/31/02(c) $10.53 0.28 0.10 0.38 (0.31) --
Year ended 7/31/03 $10.60 0.51 0.26 0.77 (0.49) --
Year ended 7/31/04 $10.88 0.46 0.25 0.71 (0.47) --
Year ended 7/31/05 $11.12 0.45 0.39 0.84 (0.45) (0.01)
Year ended 7/31/06 $11.50 0.45@ (0.22) 0.23 (0.46) (0.03)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.14) $10.60 7.51%*
Year ended 7/31/04 (0.42) $10.93 7.15%
Year ended 7/31/05 (0.33) $11.58 8.97%
Year ended 7/31/06 (0.58) $11.35 3.14%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.10) $10.58 6.81%*
Year ended 7/31/04 (0.35) $10.90 6.35%
Year ended 7/31/05 (0.25) $11.54 8.10%
Year ended 7/31/06 (0.50) $11.30 2.28%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.09) $10.59 6.81%*
Year ended 7/31/04 (0.35) $10.90 6.29%
Year ended 7/31/05 (0.25) $11.54 8.18%
Year ended 7/31/06 (0.49) $11.32 2.43%
- ------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.58) $11.33 2.84%
- ------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES
8/1/02(d) to 7/31/03 (0.19) $10.53 7.31%*
Year ended 7/31/04 (0.43) $10.64 5.11%
Year ended 7/31/05 (0.38) $10.90 6.13%
Year ended 7/31/06 (0.48) $10.70 2.62%
- ------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES
8/1/02(d) to 7/31/03 (0.15) $10.50 6.54%*
Year ended 7/31/04 (0.35) $10.61 4.37%
Year ended 7/31/05 (0.30) $10.87 5.34%
Year ended 7/31/06 (0.40) $10.67 1.83%
- ------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES
8/1/02(d) to 7/31/03 (0.14) $10.51 6.58%*
Year ended 7/31/04 (0.36) $10.61 4.34%
Year ended 7/31/05 (0.30) $10.88 5.30%
Year ended 7/31/06 (0.39) $10.67 1.72%
- ------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES
Year ended 7/31/06 (h) (0.47) $10.69 2.27%
- ------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS A SHARES
4/1/04(d) to 7/31/04 (0.16) $11.12 (3.15%)*
Year ended 7/31/05 (0.48) $11.51 7.96%
Year ended 7/31/06 (0.52) $11.25 2.36%
- ------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS B SHARES
4/1/04(d) to 7/31/04 (0.14) $11.12 (3.36%)*
Year ended 7/31/05 (0.40) $11.51 7.16%
Year ended 7/31/06 (0.43) $11.25 1.60%
- ------------------------------------------------------------------------------
STRATEGIC INCOME FUND CLASS C SHARES
10/29/01(d) to 12/31/01 (0.09) $10.50 0.62%*
1/1/02 to 7/31/02(c) (0.29) $10.55 3.22%*
Year ended 7/31/03 (0.44) $10.82 6.82%
Year ended 7/31/04 (0.41) $11.05 6.07%
Year ended 7/31/05 (0.40) $11.43 7.12%
Year ended 7/31/06 (0.43) $11.17 1.62%
- ------------------------------------------------------------------------------
STRATEGIC INCOME FUND ADVISOR SHARES
Year ended 12/31/01 (0.65) $10.53 12.64%
1/1/02 to 7/31/02(c) (0.31) $10.60 3.64%*
Year ended 7/31/03 (0.49) $10.88 7.36%
Year ended 7/31/04 (0.47) $11.12 6.55%
Year ended 7/31/05 (0.46) $11.50 7.70%
Year ended 7/31/06 (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 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%
- --------------------------------------------------------------------------------------------------
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 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%
- --------------------------------------------------------------------------------------------------
Spread 144-145
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND 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 (0.24) --
- --------------------------------------------------------------------------------------------------------------------
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 (0.16) --
- --------------------------------------------------------------------------------------------------------------------
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 (0.15) --
- --------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
Year ended 7/31/06 (h) $21.34 0.15@ 0.83 0.98 (0.21) --
- --------------------------------------------------------------------------------------------------------------------
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 -- --
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------
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) $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) $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) $20.97 4.22%
- ------------------------------------------------------------------------------
DIVIDEND GROWTH FUND ADVISOR SHARES ++
Year ended 7/31/06 (h) (0.21) $22.11 4.59%
- ------------------------------------------------------------------------------
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)
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
Spread 146-147
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND CLASS A SHARES
Year ended 7/31/02 $ 9.02 (0.04) (1.24) (1.28) (0.10) --
Year ended 7/31/03 $ 7.64 0.07 0.12 0.19 (0.02) --
Year ended 7/31/04 $ 7.81 0.05@ 1.59 1.64 (0.12) --
Year ended 7/31/05 $ 9.33 0.10 1.54 1.64 (0.17) --
Year ended 7/31/06 $10.80 0.13@ 2.36 2.49 (0.17) (0.28)
- --------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND CLASS B SHARES
Year ended 7/31/02 $ 9.06 (0.05) (1.31) (1.36) (0.10) --
Year ended 7/31/03 $ 7.60 --^ 0.11 0.11 -- --
Year ended 7/31/04 $ 7.71 (0.02)@ 1.59 1.57 (0.05) --
Year ended 7/31/05 $ 9.23 0.02 1.52 1.54 (0.11) --
Year ended 7/31/06 $10.66 0.04@ 2.32 2.36 (0.10) (0.28)
- --------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND CLASS C SHARES
Year ended 7/31/02 $ 8.82 (0.08) (1.24) (1.32) (0.10) --
Year ended 7/31/03 $ 7.40 0.02 0.08 0.10 -- --
Year ended 7/31/04 $ 7.50 (0.02)@ 1.54 1.52 (0.03) --
Year ended 7/31/05 $ 8.99 0.02 1.49 1.51 (0.11) --
Year ended 7/31/06 $10.39 0.03@ 2.28 2.31 (0.11) (0.28)
- --------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND ADVISOR SHARES
11/10/03(d) to 7/31/04 $ 8.67 0.02@ 0.65 0.67 (0.03) --
Year ended 7/31/05 $ 9.31 0.08 1.54 1.62 (0.15) --
Year ended 7/31/06 $10.78 0.08@ 2.37 2.45 (0.12) (0.28)
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05(d) to 7/31/06 $10.00 0.41 (0.27) 0.14 (0.40) --
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05(d) to 7/31/06 $10.00 0.33 (0.24) 0.09 (0.36) --
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05(d) to 7/31/06 $10.00 0.35 (0.25) 0.10 (0.36) --
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05(d) to 7/31/06 $10.00 0.39 (0.26) 0.13 (0.39) --
- --------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 9.95 0.51 (0.03) 0.48 (0.51) --
Year ended 7/31/03 $ 9.92 0.37 0.08 0.45 (0.42) --
Year ended 7/31/04 $ 9.95 0.25 0.16 0.41 (0.34) --
Year ended 7/31/05 $10.02 0.30 0.11 0.41 (0.35) (0.01)
Year ended 7/31/06 $10.07 0.39 (0.30) 0.09 (0.42) (0.06)
- --------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $10.13 0.29 (0.17) 0.12 (0.32) --
Year ended 7/31/03 $ 9.93 0.28 0.08 0.36 (0.34) --
Year ended 7/31/04 $ 9.95 0.15 0.18 0.33 (0.26) --
Year ended 7/31/05 $10.02 0.23 0.10 0.33 (0.27) (0.01)
Year ended 7/31/06 $10.07 0.32 (0.30) 0.02 (0.35) (0.06)
- --------------------------------------------------------------------------------------------------------------------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $10.13 0.27 (0.16) 0.11 (0.31) --
Year ended 7/31/03 $ 9.93 0.29 0.08 0.37 (0.34) --
Year ended 7/31/04 $ 9.96 0.17 0.15 0.32 (0.26) --
Year ended 7/31/05 $10.02 0.23 0.10 0.33 (0.27) (0.01)
Year ended 7/31/06 $10.07 0.31 (0.28) 0.03 (0.35) (0.06)
- --------------------------------------------------------------------------------------------------------------------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $10.13 0.35 (0.19) 0.16 (0.36) --
Year ended 7/31/03 $ 9.93 0.34 0.08 0.42 (0.39) --
Year ended 7/31/04 $ 9.96 0.23 0.14 0.37 (0.31) --
Year ended 7/31/05 $10.02 0.28 0.11 0.39 (0.33) (0.01)
Year ended 7/31/06 $10.07 0.36 (0.30) 0.06 (0.39) (0.06)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND CLASS A SHARES
Year ended 7/31/02 (0.10) $ 7.64 (14.23%)
Year ended 7/31/03 (0.02) $ 7.81 2.52%
Year ended 7/31/04 (0.12) $ 9.33 21.11%
Year ended 7/31/05 (0.17) $10.80 17.79%
Year ended 7/31/06 (0.45) $12.84 23.53%
- --------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND CLASS B SHARES
Year ended 7/31/02 (0.10) $ 7.60 (15.11%)
Year ended 7/31/03 -- $ 7.71 1.45%
Year ended 7/31/04 (0.05) $ 9.23 20.43%
Year ended 7/31/05 (0.11) $10.66 16.76%
Year ended 7/31/06 (0.38) $12.64 22.59%
- --------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND CLASS C SHARES
Year ended 7/31/02 (0.10) $ 7.40 (15.07%)
Year ended 7/31/03 -- $ 7.50 1.35%
Year ended 7/31/04 (0.03) $ 8.99 20.32%
Year ended 7/31/05 (0.11) $10.39 16.83%
Year ended 7/31/06 (0.39) $12.31 22.61%
- --------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND ADVISOR SHARES
11/10/03(d) to 7/31/04 (0.03) $ 9.31 7.70%*
Year ended 7/31/05 (0.15) $10.78 17.43%
Year ended 7/31/06 (0.40) $12.83 23.18%
- --------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS A SHARES
11/29/05(d) to 7/31/06 (0.40) $ 9.74 1.44%*
- --------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS B SHARES
11/29/05(d) to 7/31/06 (0.36) $ 9.73 0.91%*
- --------------------------------------------------------------------------
HIGH YIELD BOND FUND CLASS C SHARES
11/29/05(d) to 7/31/06 (0.36) $ 9.74 0.94%*
- --------------------------------------------------------------------------
HIGH YIELD BOND FUND ADVISOR SHARES
11/29/05(d) to 7/31/06 (0.39) $ 9.74 1.26%*
- --------------------------------------------------------------------------
BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.51) $ 9.92 4.91%
Year ended 7/31/03 (0.42) $ 9.95 4.62%
Year ended 7/31/04 (0.34) $10.02 4.00%
Year ended 7/31/05 (0.36) $10.07 4.17%
Year ended 7/31/06 (0.48) $ 9.68 0.97%
- --------------------------------------------------------------------------
BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.32) $ 9.93 1.22%*
Year ended 7/31/03 (0.34) $ 9.95 3.74%
Year ended 7/31/04 (0.26) $10.02 3.19%
Year ended 7/31/05 (0.28) $10.07 3.38%
Year ended 7/31/06 (0.41) $ 9.68 0.20%
- --------------------------------------------------------------------------
BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.31) $ 9.93 1.20%*
Year ended 7/31/03 (0.34) $ 9.96 3.75%
Year ended 7/31/04 (0.26) $10.02 3.20%
Year ended 7/31/05 (0.28) $10.07 3.37%
Year ended 7/31/06 (0.41) $ 9.69 0.30%
- --------------------------------------------------------------------------
BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.36) $ 9.93 1.69%*
Year ended 7/31/03 (0.39) $ 9.96 4.25%
Year ended 7/31/04 (0.31) $10.02 3.73%
Year ended 7/31/05 (0.34) $10.07 3.90%
Year ended 7/31/06 (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/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- --------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND 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 FUND 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 FUND 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 FUND 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%
- --------------------------------------------------------------------------------------------------
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 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%
- --------------------------------------------------------------------------------------------------
Spread 148-149
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 9.93 0.50 0.06 0.56 (0.48) --
Year ended 7/31/03 $10.01 0.36 0.09 0.45 (0.40) --
Year ended 7/31/04 $10.06 0.29 (0.04) 0.25 (0.36) --
Year ended 7/31/05 $ 9.95 0.34 (0.08) 0.26 (0.39) --
Year ended 7/31/06 $ 9.82 0.40@ (0.26) 0.14 (0.42) --
- -----------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $10.08 0.29 (0.10) 0.19 (0.31) --
Year ended 7/31/03 $ 9.96 0.29 0.09 0.38 (0.33) --
Year ended 7/31/04 $10.01 0.24 (0.03) 0.21 (0.32) --
Year ended 7/31/05 $ 9.90 0.34 (0.08) 0.26 (0.39) --
Year ended 7/31/06 $ 9.77 0.40@ (0.26) 0.14 (0.42) --
- -----------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $10.08 0.27 (0.07) 0.20 (0.30) --
Year ended 7/31/03 $ 9.98 0.30 0.08 0.38 (0.33) --
Year ended 7/31/04 $10.03 0.20 (0.03) 0.17 (0.28) --
Year ended 7/31/05 $ 9.92 0.26 (0.07) 0.19 (0.32) --
Year ended 7/31/06 $ 9.79 0.33@ (0.26) 0.07 (0.35) --
- -----------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 9.80 0.39@ (0.28) 0.11 (0.40) --
- -----------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 7/31/02 $ 9.82 0.43 0.03 0.46 (0.47) --
Year ended 7/31/03 $ 9.81 0.28 0.02 0.30 (0.37) --
Year ended 7/31/04 $ 9.74 0.18@ (0.07) 0.11 (0.29) --
Year ended 7/31/05 $ 9.56 0.19 (0.09) 0.10 (0.30) --
Year ended 7/31/06 $ 9.36 0.28 (0.04) 0.24 (0.35) --
- -----------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 $ 9.75 0.09@ (0.06) 0.03 (0.22) --
Year ended 7/31/05 $ 9.56 0.10 (0.08) 0.02 (0.22) --
Year ended 7/31/06 $ 9.36 0.21 (0.04) 0.17 (0.28) --
- -----------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $ 9.37 0.27 (0.07) 0.20 (0.33) --
- -----------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.48) $10.01 5.78%
Year ended 7/31/03 (0.40) $10.06 4.52%
Year ended 7/31/04 (0.36) $ 9.95 2.45%
Year ended 7/31/05 (0.39) $ 9.82 2.67%
Year ended 7/31/06 (0.42) $ 9.54 1.48%
- -----------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.31) $ 9.96 1.92%*
Year ended 7/31/03 (0.33) $10.01 3.78%
Year ended 7/31/04 (0.32) $ 9.90 2.06%
Year ended 7/31/05 (0.39) $ 9.77 2.58%
Year ended 7/31/06 (0.42) $ 9.49 1.49%
- -----------------------------------------------------------------------
INTERMEDIATE BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.30) $ 9.98 2.02%*
Year ended 7/31/03 (0.33) $10.03 3.78%
Year ended 7/31/04 (0.28) $ 9.92 1.72%
Year ended 7/31/05 (0.32) $ 9.79 1.91%
Year ended 7/31/06 (0.35) $ 9.51 0.72%
- -----------------------------------------------------------------------
INTERMEDIATE BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.40) $ 9.51 1.17%
- -----------------------------------------------------------------------
SHORT TERM BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.47) $ 9.81 4.83%
Year ended 7/31/03 (0.37) $ 9.74 3.07%
Year ended 7/31/04 (0.29) $ 9.56 1.12%
Year ended 7/31/05 (0.30) $ 9.36 1.00%
Year ended 7/31/06 (0.35) $ 9.25 2.60%
- -----------------------------------------------------------------------
SHORT TERM BOND FUND CLASS C SHARES
8/1/03 (d) to 7/31/04 (0.22) $ 9.56 0.39%*
Year ended 7/31/05 (0.22) $ 9.36 0.23%
Year ended 7/31/06 (0.28) $ 9.25 1.81%
- -----------------------------------------------------------------------
SHORT TERM BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.33) $ 9.24 2.18%
- -----------------------------------------------------------------------
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)
- -----------------------------------------------------------------------------------------------
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%
- -----------------------------------------------------------------------------------------------
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%
- -----------------------------------------------------------------------------------------------
Spread 150-151
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/02(f) $10.06 0.38 0.35 0.73 (0.36) --
Year ended 7/31/03 $10.43 0.27 0.03 0.30 (0.28) (0.16)
Year ended 7/31/04 $10.29 0.20 0.03 0.23 (0.23) (0.16)
Year ended 7/31/05 $10.13 0.28 (0.06) 0.22 (0.26) --
Year ended 7/31/06 $10.09 0.36 (0.19) 0.17 (0.33) (0.03)
- --------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/02(f) $10.01 0.30 0.34 0.64 (0.29) --
Year ended 7/31/03 $10.36 0.19 0.03 0.22 (0.20) (0.16)
Year ended 7/31/04 $10.22 0.15 (0.01) 0.14 (0.15) (0.16)
Year ended 7/31/05 $10.05 0.20 (0.06) 0.14 (0.18) --
Year ended 7/31/06 $10.01 0.29 (0.20) 0.09 (0.25) (0.03)
- --------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $10.09 0.34 (0.19) 0.15 (0.31) (0.03)
- --------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 $10.78 0.40 0.25 0.65 (0.41) (0.25)
Year ended 7/31/03 $10.77 0.40@ (0.07) 0.33 (0.40) (0.16)
Year ended 7/31/04 $10.54 0.40@ 0.06 0.46 (0.40) (0.17)
Year ended 7/31/05 $10.43 0.38 0.06 0.44 (0.37) (0.39)
Year ended 7/31/06 $10.11 0.36 (0.23) 0.13 (0.35) (0.44)
- --------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $10.87 0.25 0.09 0.34 (0.25) (0.25)
Year ended 7/31/03 $10.71 0.32@ (0.07) 0.25 (0.33) (0.16)
Year ended 7/31/04 $10.47 0.32@ 0.07 0.39 (0.32) (0.17)
Year ended 7/31/05 $10.37 0.29 0.06 0.35 (0.29) (0.39)
Year ended 7/31/06 $10.04 0.28 (0.24) 0.04 (0.27) (0.44)
- --------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $10.87 0.25 0.10 0.35 (0.25) (0.25)
Year ended 7/31/03 $10.72 0.32@ (0.07) 0.25 (0.33) (0.16)
Year ended 7/31/04 $10.48 0.32@ 0.07 0.39 (0.32) (0.17)
Year ended 7/31/05 $10.38 0.31 0.04 0.35 (0.29) (0.39)
Year ended 7/31/06 $10.05 0.28 (0.23) 0.05 (0.27) (0.44)
- --------------------------------------------------------------------------------------------------------------------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $10.87 0.28 0.13 0.41 (0.30) (0.25)
Year ended 7/31/03 $10.73 0.38@ (0.08) 0.30 (0.38) (0.16)
Year ended 7/31/04 $10.49 0.38@ 0.06 0.44 (0.37) (0.17)
Year ended 7/31/05 $10.39 0.34 0.06 0.40 (0.34) (0.39)
Year ended 7/31/06 $10.06 0.33 (0.23) 0.10 (0.32) (0.44)
- --------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS A SHARES
Year ended 7/31/02(f) (0.36) $10.43 7.42%
Year ended 7/31/03 (0.44) $10.29 2.83%
Year ended 7/31/04 (0.39) $10.13 2.26%
Year ended 7/31/05 (0.26) $10.09 2.13%
Year ended 7/31/06 (0.36) $ 9.90 1.65%
- --------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND CLASS C SHARES
Year ended 7/31/02(f) (0.29) $10.36 6.53%
Year ended 7/31/03 (0.36) $10.22 2.12%
Year ended 7/31/04 (0.31) $10.05 1.41%
Year ended 7/31/05 (0.18) $10.01 1.39%
Year ended 7/31/06 (0.28) $ 9.82 0.86%
- --------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.34) $ 9.90 1.44%
- --------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.66) $10.77 6.31%
Year ended 7/31/03 (0.56) $10.54 3.05%
Year ended 7/31/04 (0.57) $10.43 4.35%
Year ended 7/31/05 (0.76) $10.11 4.35%
Year ended 7/31/06 (0.79) $ 9.45 1.32%
- --------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.50) $10.71 3.36%*
Year ended 7/31/03 (0.49) $10.47 2.26%
Year ended 7/31/04 (0.49) $10.37 3.71%
Year ended 7/31/05 (0.68) $10.04 3.50%
Year ended 7/31/06 (0.71) $ 9.37 0.47%
- --------------------------------------------------------------------------
MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.50) $10.72 3.42%*
Year ended 7/31/03 (0.49) $10.48 2.31%
Year ended 7/31/04 (0.49) $10.38 3.71%
Year ended 7/31/05 (0.68) $10.05 3.45%
Year ended 7/31/06 (0.71) $ 9.39 0.56%
- --------------------------------------------------------------------------
MUNICIPAL BOND FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 (0.55) $10.73 3.99%*
Year ended 7/31/03 (0.54) $10.49 2.76%
Year ended 7/31/04 (0.54) $10.39 4.22%
Year ended 7/31/05 (0.73) $10.06 4.01%
Year ended 7/31/06 (0.76) $ 9.40 1.08%
- --------------------------------------------------------------------------
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)
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------------------------
Spread 152-153
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
-------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 $10.78 0.36 0.24 0.60 (0.35) (0.24)
Year ended 7/31/03 $10.79 0.34@ (0.07) 0.27 (0.34) (0.07)
Year ended 7/31/04 $10.65 0.34 (0.02) 0.32 (0.34) (0.09)
Year ended 7/31/05 $10.54 0.33 (0.07) 0.26 (0.39) (0.08)
Year ended 7/31/06 $10.33 0.33@ (0.20) 0.13 (0.33) (0.13)
- ------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $10.67 0.21 0.11 0.32 (0.21) --
Year ended 7/31/03 $10.78 0.26@ (0.08) 0.18 (0.26) (0.07)
Year ended 7/31/04 $10.63 0.30 (0.03) 0.27 (0.30) (0.09)
Year ended 7/31/05 $10.51 0.34 (0.07) 0.27 (0.39) (0.08)
Year ended 7/31/06 $10.31 0.33@ (0.20) 0.13 (0.33) (0.13)
- ------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $10.67 0.19 0.13 0.32 (0.21) --
Year ended 7/31/03 $10.78 0.26@ (0.08) 0.18 (0.26) (0.07)
Year ended 7/31/04 $10.63 0.28 (0.04) 0.24 (0.25) (0.09)
Year ended 7/31/05 $10.53 0.24 (0.05) 0.19 (0.31) (0.08)
Year ended 7/31/06 $10.33 0.26@ (0.21) 0.05 (0.26) (0.13)
- ------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $10.33 0.32@ (0.21) 0.11 (0.31) (0.13)
- ------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02(g) $10.28 0.36 0.19 0.55 (0.35) --
Year ended 7/31/03 $10.48 0.35 (0.10) 0.25 (0.34) --
Year ended 7/31/04 $10.39 0.33 0.03 0.36 (0.33) (0.03)
Year ended 7/31/05 $10.39 0.33 (0.08) 0.25 (0.32) (0.07)
Year ended 7/31/06 $10.25 0.33@ (0.21) 0.12 (0.33) (0.03)
- ------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
Year ended 7/31/02(g) $10.10 0.28 0.19 0.47 (0.28) --
Year ended 7/31/03 $10.29 0.27 (0.10) 0.17 (0.27) --
Year ended 7/31/04 $10.19 0.24 0.03 0.27 (0.25) (0.03)
Year ended 7/31/05 $10.18 0.25 (0.08) 0.17 (0.25) (0.07)
Year ended 7/31/06 $10.03 0.25@ (0.21) 0.04 (0.26) (0.03)
- ------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/02(g) $10.25 0.28 0.19 0.47 (0.28) --
Year ended 7/31/03 $10.44 0.26 (0.09) 0.17 (0.26) --
Year ended 7/31/04 $10.35 0.26 0.02 0.28 (0.25) (0.03)
Year ended 7/31/05 $10.35 0.25 (0.09) 0.16 (0.24) (0.07)
Year ended 7/31/06 $10.20 0.25@ (0.20) 0.05 (0.25) (0.03)
- ------------------------------------------------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $10.25 0.31@ (0.22) 0.09 (0.32) (0.03)
- ------------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.59) $10.79 5.74%
Year ended 7/31/03 (0.41) $10.65 2.48%
Year ended 7/31/04 (0.43) $10.54 3.03%
Year ended 7/31/05 (0.47) $10.33 2.44%
Year ended 7/31/06 (0.46) $10.00 1.27%
- ---------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.21) $10.78 3.02%*
Year ended 7/31/03 (0.33) $10.63 1.67%
Year ended 7/31/04 (0.39) $10.51 2.54%
Year ended 7/31/05 (0.47) $10.31 2.54%
Year ended 7/31/06 (0.46) $ 9.98 1.28%
- ---------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.21) $10.78 3.03%*
Year ended 7/31/03 (0.33) $10.63 1.64%
Year ended 7/31/04 (0.34) $10.53 2.29%
Year ended 7/31/05 (0.39) $10.33 1.76%
Year ended 7/31/06 (0.39) $ 9.99 0.41%
- ---------------------------------------------------------------------------------
INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.44) $10.00 1.09%
- ---------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02(g) (0.35) $10.48 5.50%
Year ended 7/31/03 (0.34) $10.39 2.39%
Year ended 7/31/04 (0.36) $10.39 3.40%
Year ended 7/31/05 (0.39) $10.25 2.36%
Year ended 7/31/06 (0.36) $10.01 1.19%
- ---------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS B SHARES
Year ended 7/31/02(g) (0.28) $10.29 4.76%
Year ended 7/31/03 (0.27) $10.19 1.59%
Year ended 7/31/04 (0.28) $10.18 2.62%
Year ended 7/31/05 (0.32) $10.03 1.66%
Year ended 7/31/06 (0.29) $ 9.78 0.37%
- ---------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND CLASS C SHARES
Year ended 7/31/02(g) (0.28) $10.44 4.71%
Year ended 7/31/03 (0.26) $10.35 1.65%
Year ended 7/31/04 (0.28) $10.35 2.65%
Year ended 7/31/05 (0.31) $10.20 1.60%
Year ended 7/31/06 (0.28) $ 9.97 0.44%
- ---------------------------------------------------------------------------------
OHIO MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (0.35) $ 9.99 0.83%
- ---------------------------------------------------------------------------------
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 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%
- ---------------------------------------------------------------------------------------------------------
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(g) $ 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%
- ---------------------------------------------------------------------------------------------------------
Spread 154-155
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- --------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 $10.24 0.36 0.19 0.55 (0.36) (0.05)
Year ended 7/31/03 $10.38 0.30 (0.05) 0.25 (0.30) (0.03)
Year ended 7/31/04 $10.30 0.27 (0.13) 0.14 (0.27) (0.01)
Year ended 7/31/05 $10.16 0.26 (0.13) 0.13 (0.26) (0.01)
Year ended 7/31/06 $10.02 0.27 (0.15) 0.12 (0.27) --
- -----------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 $10.35 0.21 0.08 0.29 (0.21) (0.05)
Year ended 7/31/03 $10.38 0.21 (0.05) 0.16 (0.21) (0.03)
Year ended 7/31/04 $10.30 0.18 (0.13) 0.05 (0.18) (0.01)
Year ended 7/31/05 $10.16 0.17 (0.13) 0.04 (0.17) (0.01)
Year ended 7/31/06 $10.02 0.19 (0.15) 0.04 (0.18) --
- -----------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 $10.35 0.19 0.10 0.29 (0.21) (0.05)
Year ended 7/31/03 $10.38 0.21 (0.06) 0.15 (0.21) (0.03)
Year ended 7/31/04 $10.29 0.19 (0.13) 0.06 (0.18) (0.01)
Year ended 7/31/05 $10.16 0.18 (0.14) 0.04 (0.17) (0.01)
Year ended 7/31/06 $10.02 0.19 (0.15) 0.04 (0.18) --
- -----------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) $10.03 0.23 (0.14) 0.09 (0.24) --
- -----------------------------------------------------------------------------------------------------------------------
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES
Year ended 7/31/02 (0.41) $10.38 5.51%
Year ended 7/31/03 (0.33) $10.30 2.45%
Year ended 7/31/04 (0.28) $10.16 1.37%
Year ended 7/31/05 (0.27) $10.02 1.33%
Year ended 7/31/06 (0.27) $ 9.87 1.20%
- -----------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES
10/29/01(d) to 7/31/02 (0.26) $10.38 2.82%*
Year ended 7/31/03 (0.24) $10.30 1.70%
Year ended 7/31/04 (0.19) $10.16 0.43%
Year ended 7/31/05 (0.18) $10.02 0.46%
Year ended 7/31/06 (0.18) $ 9.88 0.42%
- -----------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES
10/29/01(d) to 7/31/02 (0.26) $10.38 2.89%*
Year ended 7/31/03 (0.24) $10.29 1.60%
Year ended 7/31/04 (0.19) $10.16 0.48%
Year ended 7/31/05 (0.18) $10.02 0.43%
Year ended 7/31/06 (0.18) $ 9.88 0.43%
- -----------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES
Year ended 7/31/06 (h) (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/(LOSS) AVERAGE PORTFOLIO
PERIOD NET TO AVERAGE NET TURNOVER
(000'S) ASSETS NET ASSETS ASSETS (a) RATE (b)
- -----------------------------------------------------------------------------------------------------
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%
- -----------------------------------------------------------------------------------------------------
Spread 156-157
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 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(d) 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(d) 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)
- ---------------------------------------------------------------------------------------------------------
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)
- ---------------------------------------------------------------------------------------------------------
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 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)
- ---------------------------------------------------------------------------------------------------------
NET ASSET
VALUE,
END OF TOTAL
PERIOD RETURN
- -------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $1.00 1.77%
Year ended 7/31/03 $1.00 0.76%
Year ended 7/31/04 $1.00 0.40%
Year ended 7/31/05 $1.00 1.66%
Year ended 7/31/06 $1.00 3.71%
- -------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
Year ended 7/31/02 $1.00 1.00%
Year ended 7/31/03 $1.00 0.32%
Year ended 7/31/04 $1.00 0.24%
Year ended 7/31/05 $1.00 0.95%
Year ended 7/31/06 $1.00 2.94%
- -------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(d) to 7/31/02 $1.00 0.19%*
Year ended 7/31/03 $1.00 0.32%
Year ended 7/31/04 $1.00 0.23%
Year ended 7/31/05 $1.00 0.95%
Year ended 7/31/06 $1.00 2.93%
- -------------------------------------------------------------------------
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $1.00 1.02%*
Year ended 7/31/03 $1.00 0.53%
Year ended 7/31/04 $1.00 0.24%
Year ended 7/31/05 $1.00 1.40%
Year ended 7/31/06 $1.00 3.45%
- -------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $1.00 1.58%
Year ended 7/31/03 $1.00 0.71%
Year ended 7/31/04 $1.00 0.27%
Year ended 7/31/05 $1.00 1.55%
Year ended 7/31/06 $1.00 3.61%
- -------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $1.00 1.25%
Year ended 7/31/03 $1.00 0.78%
Year ended 7/31/04 $1.00 0.49%
Year ended 7/31/05 $1.00 1.30%
Year ended 7/31/06 $1.00 2.48%
- -------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $1.00 1.38%
Year ended 7/31/03 $1.00 0.80%
Year ended 7/31/04 $1.00 0.43%
Year ended 7/31/05 $1.00 1.30%
Year ended 7/31/06 $1.00 2.62%
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------
RATIOS OF RATIOS OF RATIO OF
NET EXPENSES NET EXPENSES
ASSETS, TO INVESTMENT TO
END OF AVERAGE INCOME AVERAGE
PERIOD NET TO AVERAGE NET
(000'S) ASSETS NET ASSETS ASSETS (a)
- ------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $447,556 0.80% 1.71% 0.89%
Year ended 7/31/03 $436,687 0.79% 0.77% 0.90%
Year ended 7/31/04 $387,424 0.79% 0.40% 0.91%
Year ended 7/31/05 $464,391 0.79% 1.67% 0.90%
Year ended 7/31/06 $455,183 0.79% 3.65% 0.91%
- ------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS B SHARES
Year ended 7/31/02 $ 1,893 1.55% 0.91% 1.64%
Year ended 7/31/03 $ 2,426 1.22% 0.33% 1.65%
Year ended 7/31/04 $ 1,651 0.95% 0.23% 1.66%
Year ended 7/31/05 $ 1,340 1.51% 1.14% 1.66%
Year ended 7/31/06 $ 1,216 1.54% 2.84% 1.66%
- ------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND CLASS C SHARES
5/5/02(d) to 7/31/02 $ 60 1.54%** 0.48%** 1.71%**
Year ended 7/31/03 $ 154 1.14% 0.32% 1.65%
Year ended 7/31/04 $ 2,843 0.98% 0.25% 1.66%
Year ended 7/31/05 $ 1,474 1.46% 0.85% 1.65%
Year ended 7/31/06 $ 879 1.54% 2.80% 1.66%
- ------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND ADVISOR SHARES
10/29/01(d) to 7/31/02 $ 2 0.89%** 1.23%** 0.96%**
Year ended 7/31/03 $ 62 1.02% 0.46% 1.15%
Year ended 7/31/04 $ 36 0.96% 0.26% 1.16%
Year ended 7/31/05 $ 42 1.04% 1.28% 1.15%
Year ended 7/31/06 $ 1,628 1.04% 3.71% 1.17%
- ------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $270,062 0.85% 1.57% 0.94%
Year ended 7/31/03 $177,390 0.81% 0.66% 0.91%
Year ended 7/31/04 $110,153 0.82% 0.27% 0.92%
Year ended 7/31/05 $ 95,375 0.79% 1.53% 0.92%
Year ended 7/31/06 $ 72,896 0.75% 3.53% 0.93%
- ------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $ 177 0.70% 1.26% 0.91%
Year ended 7/31/03 $ 19 0.64% 0.90% 0.92%
Year ended 7/31/04 $ 18 0.64% 0.48% 0.91%
Year ended 7/31/05 $ 110 0.69% 1.45% 0.93%
Year ended 7/31/06 $ 1,686 0.70% 2.77% 0.93%
- ------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND CLASS A SHARES
Year ended 7/31/02 $ 42,004 0.41% 1.35% 1.02%
Year ended 7/31/03 $ 53,079 0.52% 0.80% 1.03%
Year ended 7/31/04 $ 17,590 0.63% 0.42% 1.05%
Year ended 7/31/05 $ 25,516 0.63% 1.30% 1.06%
Year ended 7/31/06 $ 27,027 0.50% 2.62% 1.06%
- ------------------------------------------------------------------------------------------------
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, 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 0.75% 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.
SEE NOTES TO FINANCIAL STATEMENTS
Spread 158-159
FIFTH THIRD FUNDS
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(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, 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
3.52% 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, 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 an losses per share
by ($0.00) and increase the ratio of net investment income to average net
assets from 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
160
ADDRESSES
- -------------------------------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
Stock and Bond Mutual Funds 3435 Stelzer Road
Asset Allocation Funds Columbus, Ohio 43219
Money Market Mutual Funds
Class A Shares
Class B Shares
Class C Shares
Advisor Shares
- -------------------------------------------------------------------------------------------------------
Investment Advisor, Administrator and Accountant Fifth Third Asset Management, Inc.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- -------------------------------------------------------------------------------------------------------
Sub-Advisor Morgan Stanley Investment Management Inc.
(International Equity Fund only) 1221 Avenue of the Americas
New York, New York 10020
- -------------------------------------------------------------------------------------------------------
Sub-Advisor Fort Washington Investment Advisors, Inc.
(High Yield Bond Fund only) 420 East Fourth Street
Cincinnati, Ohio 45202
- -------------------------------------------------------------------------------------------------------
Distributor Fifth Third Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------------------
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 and Sub-Accountant BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
- -------------------------------------------------------------------------------------------------------
Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP
100 East Broad Street
Suite 2100
Columbus, Ohio 43215
- -------------------------------------------------------------------------------------------------------
161
The following additional information is available to you upon request and
without charge.
ANNUAL/SEMI-ANNUAL REPORTS:
The Funds' annual and semi-annual reports to shareholders contain additional
information on the Funds' investments. The Funds' annual reports also contain
discussions of the market conditions and investment strategies that
significantly affected the Funds' performance during each Fund's last fiscal
year.
Statement of Additional Information (SAI): The SAI provides more detailed
information about the Funds, including their operations and investment policies.
It is incorporated by reference and is legally considered a part of this
prospectus.
- --------------------------------------------------------------------------------
YOU CAN GET FREE COPIES OF ANNUAL AND SEMI-ANNUAL REPORTS, THE SAI, PROSPECTUSES
OF OTHER FIFTH THIRD FUNDS, OR REQUEST OTHER INFORMATION AND DISCUSS YOUR
QUESTIONS ABOUT THE FUNDS BY CONTACTING A BROKER OR OTHER FINANCIAL INSTITUTION
THAT SELLS THE FUNDS. IN ADDITION, YOU MAY CONTACT THE FUNDS AT:
FIFTH THIRD FUNDS
3435 STELZER ROAD
COLUMBUS, OHIO 43219
TELEPHONE: 1-800-282-5706
INTERNET: HTTP://WWW.53.COM*
- --------------------------------------------------------------------------------
* The Funds' website is not part of this Prospectus.
You can review the annual and semi-annual reports and the SAI at the Public
Reference Room of the Securities and Exchange Commission. You can get copies:
o For a fee, by writing the Public Reference Section of the Commission,
Washington, D.C. 20549-0102 or calling 1-202-942-8090, or by
electronic request, by e-mailing the Commission at the following
address: publicinfo@sec.gov.
o At no charge on the EDGAR Database on the Commission's Website at
http://www.sec.gov.
Investment Company Act file no. 811-5669.
162
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165
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