UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER: 811-5669 ----------------------------------------- FIFTH THIRD FUNDS (Exact Name of Registrant as Specified in Charter) ------------------------------------------------- 38 Fountain Square Plaza Cincinnati, Ohio 45263 (Address of Principal Executive Office) (Zip Code) ------------------------------------------------- Registrant's Telephone Number, including area code: (800) 282-5706 (Name and Address of Agent for Service) E. Keith Wirtz President Fifth Third Funds 38 Fountain Square Plaza Cincinnati, Ohio 45263 with a copy to: Alan G. Priest Ropes & Gray LLP One Metro Center 700 12th Street NW Suite 900 Washington, DC 20005-3948 Date of fiscal year end: July 31 Date of reporting period: July 31, 2007 ITEM 1. REPORT TO STOCKHOLDERS. [ ] STOCK AND BOND MUTUAL FUNDS ANNUAL REPORT TO SHAREHOLDERS ________________ JULY 31, 2007 FIFTH THIRD FUNDS NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the polices and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities and information regarding how the Funds voted relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-282-5706 or on the Securities and Exchange Commission's website at http://www.sec.gov. Schedules of Portfolio Investments for periods ending April 30 and October 31 are available, without charge, on the Securities and Exchange Commission's website at http://www.sec.gov. Fifth Third Funds are distributed by ALPS Distributors, Inc., member FINRA, d/b/a FTAM Funds Distributor, Inc. ALPS Distributors, Inc. and FTAM Funds Distributor, Inc. are affiliated firms through direct ownership, although ALPS Distributors, Inc. and FTAM Funds Distributor, Inc. are not affiliates of Fifth Third Bank. Fifth Third Asset Management, Inc. serves as Investment Adviser to Fifth Third Funds and receives a fee for its services. FIFTH THIRD FUNDS, LIKE ALL MUTUAL FUNDS: o ARE NOT FDIC INSURED o HAVE NO BANK GUARANTEE o MAY LOSE VALUE TABLE OF CONTENTS Economic Outlook and Commentary Section................................... 1 Management Discussion of Fund Performance Small Cap Growth ......................................................... 4 Mid Cap Growth ........................................................... 6 Quality Growth ........................................................... 8 Structured Large Cap Plus (formerly Large Cap Core)....................... 10 Equity Index ............................................................. 12 Balanced ................................................................. 14 Micro Cap Value .......................................................... 16 Small Cap Value .......................................................... 18 Multi Cap Value .......................................................... 20 Disciplined Large Cap Value .............................................. 22 Fifth Third LifeModel Aggressive(SM)....................................... 24 Fifth Third LifeModel Moderately Aggressive (SM)............................ 26 Fifth Third LifeModel Moderate (SM)......................................... 28 Fifth Third LifeModel Moderately Conservative (SM).......................... 30 Fifth Third LifeModel Conservative (SM)..................................... 32 Strategic Income.......................................................... 34 Dividend Growth........................................................... 36 Technology ............................................................... 38 International Equity...................................................... 40 High Yield Bond........................................................... 42 Bond...................................................................... 44 Intermediate Bond......................................................... 46 Short Term Bond........................................................... 48 U.S. Government Bond...................................................... 50 Municipal Bond............................................................ 52 Intermediate Municipal Bond............................................... 54 Ohio Municipal Bond....................................................... 56 Michigan Municipal Bond .................................................. 58 Schedules of Portfolio Investments........................................ 61 Notes to Schedules of Portfolio Investments............................... 122 Statements of Assets and Liabilities...................................... 134 Statements of Operations.................................................. 139 Statements of Changes in Net Assets....................................... 144 Financial Highlights...................................................... 162 Notes to Financial Highlights............................................. 202 Notes to Financial Statements............................................. 203 Report of Independent Registered Public Accounting Firm................... 217 Supplemental Information.................................................. 218 OUR MESSAGE TO YOU - -------------------------------------------------------------------------------- Broadly diversified equity investors enjoyed strong returns over the second half of 2006 and the first two quarters of 2007. Fifth Third Funds shareholders also generally benefited from positive returns during this period. For the 12-month period ending July 31, 2007, the major stock market averages posted the following gains: o The S&P 500 Index of large cap stocks returned 16.13%. o The S&P 400 Index of mid cap stocks returned 16.73%. o The S&P 600 Index of small cap stocks returned 14.11%. o The MSCI EAFE(R) Index of international stocks returned 23.91%. The outperformance by international equities reflected continued strength in overseas economies and a slowing of the economic growth rate in the U.S. Reversing a five-year trend, large capitalization stocks outgained mid and small cap stocks as investors strayed from more volatile investments amid a 2007 reassessment of risk tolerances. Another lengthy pattern changed course as growth stock returns topped value stock gains for the first time since the 2002 recovery period. Given the shifting tides of the world's equity markets, we continue to emphasize that a well-diversified approach to investing remains the preferred strategy for individual investors. A number of factors influenced the financial markets during the period, which saw the S&P 500 Index achieve a record high, but also endure some sharp downturns. Most significant were: 1. Complications in the subprime mortgage industry, where poor underwriting practices from 2005 and 2006 resulted in a growing number of home loan defaults. Conditions not only pressured the real estate market, where supply expanded and demand fell, but had a marked effect on the bond market, where many of the bad loans had been packaged into mortgage backed securities (MBS) and sold around the world. 2. A robust merger and acquisition (M&A) market, which contributed to climbing values in takeover targets and peers through the first 10 months of the period. By the end of the period, uncertainties in the bond market dampened much of the enthusiasm, especially among private equity firms that rely on debt to make large purchases. 3. Continued strength in corporate fundamentals, which at times was overshadowed by the M&A buzz. With healthy, albeit moderating, earnings growth, strong global economies to support exports and very solid balance sheets and cash flow, many companies engaged in positive capital activity such as increased dividends and share buybacks. 4. The Federal Reserve's vigilant watch over inflationary pressures, which prompted the central bank to keep its key lending rate at 5.25% for the entire period. 5. Brighter prospects for business spending offsetting a tempered outlook for consumer spending. Emboldened by solid cash positions, businesses forecast healthy spending budgets, especially in capital goods and information technology. As for consumers, although the core inflation rate remained modest, gains in gasoline and food prices weighed, especially in light of the weakening housing market. Fixed income and cash investments provided modest gains during the 12-month period, the result of strong returns through the first 10 months and challenging conditions through the closing months. The U.S. Treasury yield curve spent much of the period inverted, which occurs when short term interest rates are higher than yields on long term bonds. Some 1 economists say an inverted yield curve indicates a recession is forthcoming, but we believe the gradual slope of the inversion during the period failed to point conclusively to such a prediction. While the volatility of the final two months of the period resulted in some unsettling moments, it served as a reminder that financial markets do not move upwards in a straight line. Risk should always be a component within any investment decision, and the market should provide a premium for riskier assets. Small cap stocks, high yield bonds and low quality mortgage backed securities led the fall through June and July as many reasoned that the risk premium had narrowed too far. That said, the family of Fifth Third Funds adheres to a high quality philosophy that emphasizes stability and financial soundness in its investments. And while high quality positions are just as prone to broad market declines as low quality assets, solid fundamentals should soften the drop and better support the eventual recovery. Looking ahead, our expectations on the macro front include: o Solid growth of about 2% to 3% for the domestic economy. o Continued containment of inflationary pressures, leading to minimal advances in long term interest rates. o Steady corporate earnings growth and an emphasis, especially among larger companies, to bolster shareholder returns through increased dividend payouts and share buybacks. o Energy prices that tend to follow traditional seasonal patterns. o Following near term challenges in the capital and liquidity markets, a return to reasonable terms and rates for higher quality borrowers. o A drop in the Federal Reserve's interest rates by year-end. Through the markets twists and turns over the past 12 months, the family of Fifth Third Funds generated competitive returns for you, our shareholder. Due largely to the discipline of our managers, the family of Fifth Third Funds weathered the market turbulence well and stands well-positioned to participate in what we expect to be a recovery in the coming quarters. Of course, risks remain, but ultimately, we believe that investors should be rewarded for a patient and well-diversified approach to investing. Thank you for your confidence in Fifth Third Funds. /s/ Keith Wirtz, CFA E. Keith Wirtz, CFA Chief Investment Officer - -------------------------------------------------------------------------------- 1 TERMS AND DEFINITIONS - -------------------------------------------------------------------------------- THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500 INDEX") IS AN INDEX OF 500 SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED ON THE NEW YORK STOCK EXCHANGE, AND IS A MEASURE OF THE U.S. STOCK MARKET AS A WHOLE. THE STANDARD AND POOR'S MIDCAP 400 INDEX ("S&P 400 INDEX") IS AN INDEX OF 400 SELECTED COMMON STOCKS THAT TRACKS U.S. FIRMS WITH MARKET CAPITALIZATIONS OF $1.5 BILLION TO $5.5 BILLION. THE STANDARD AND POOR'S SMALLCAP 600 INDEX ("S&P 600 INDEX") IS AN INDEX OF 600 SELECTED COMMON STOCKS THAT TRACKS U.S. FIRMS WITH MARKET CAPITALIZATIONS OF $300 MILLION TO $2 BILLION. THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)(R) INDEX IS GENERALLY REPRESENTATIVE OF A SAMPLE OF COMPANIES OF THE MARKET STRUCTURE OF 20 EUROPEAN AND PACIFIC BASIN COUNTRIES. THE ABOVE INDICES DO NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING SECURITIES. 2 This page intentionally left blank. 3 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SMALL CAP GROWTH FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Small Cap Growth Fund (Institutional Shares) advanced 20.45% on a net of fee basis, outperforming its benchmark, the Russell 2000(R) Growth Index, which returned 16.84%. Early in the period, signs of continued economic strength and the Federal Reserve's decision to stop its rate hike campaign inspired investors to revive the market, which had slumped during the summer of 2006. The rise extended for most of the period, aside from a China-related selloff in the first quarter of 2007 and a dip due to subprime mortgage concerns in the period's closing weeks. Accelerated economic growth around the globe overshadowed a modest slowing in the U.S. economy, and economically sensitive sectors such as industrials and materials ranked among the market leaders during the period. Keying the Fund's outperformance was an overweight position, relative to the benchmark, in the industrials sector. Solid stock selection enhanced returns, especially from within the marine transport group. With the Fed holding the line on interest rates and subprime mortgages wreaking havoc on the housing finance industry, the financials sector significantly lagged the market. Along with an underweight stake in the struggling sector, minimal exposure to real estate investment trusts helped produce a strong relative return for the Fund. Elsewhere, an underweight stake in the oil and gas exploration and production industry helped produce a strong relative return. Weighing on gains was an overweight position in healthcare service providers, which underperformed along with other groups that tend to offer more stable growth. An overweight stake in specialty retailers, which contended with an uncertain consumer buying outlook, further diminished returns. Given the challenges facing U.S. consumers, including higher gasoline prices and a sagging real estate market, the Fund focused its consumer discretionary allocation during the period on names with business-driven operations. It also added to industrials and information technology holdings, while taking some profits in the healthcare, energy and materials spaces. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY STOCKS ON AVERAGE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 20.45% 13.23% 5.73% $17,464 - -------------------------------------------------------------------------------- Class A Shares 14.09% 11.80% 4.92% $16,172 - -------------------------------------------------------------------------------- Class B Shares 14.69% 11.87% 4.67% $15,780 - -------------------------------------------------------------------------------- Class C Shares 19.18% 12.10% 4.67% $15,781 - -------------------------------------------------------------------------------- Advisor Shares 15.95% 11.92% 4.85% $16,053 - -------------------------------------------------------------------------------- Russell 2000(R) Growth Index 1 16.84% 15.68% 4.20% $15,089 - -------------------------------------------------------------------------------- Lipper Small-Cap Growth Funds Average 1 18.69% 14.51% 7.62% $22,810 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.06% (INSTITUTIONAL SHARES), 1.30% (CLASS A), 1.56% (ADVISOR SHARES) AND 2.06% (CLASS B) AND 2.05% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE SMALL CAP GROWTH FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT SMALL COMPANY GROWTH FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT SMALL COMPANY GROWTH INVESTMENT SHARES, WITH AN INCEPTION DATE OF DECEMBER 4, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE INCEPTION DATE FOR CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Fifth Third Institutional Money Market Fund .......................... 3.64% Ultrapetrol Bahamas, Ltd. ............................................ 2.11% Bucyrus International, Inc., Class A ................................. 2.00% LKQ Corp. ............................................................ 1.97% Varian Semiconductor Equipment Associates, Inc. ...................... 1.90% HUB Group, Inc., Class A ............................................. 1.86% Huron Consulting Group, Inc. ......................................... 1.84% NuVasive, Inc. ....................................................... 1.83% Aegean Marine Petroleum, Inc. ........................................ 1.83% Vasco Data Security International, Inc. .............................. 1.73% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 4 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SMALL CAP GROWTH FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Fifth Third Small Cap Growth Russell 2000(R) Lipper Small-Cap (Institutional Shares) Growth Index Growth Funds Average ---------------------- --------------- -------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,955 $ 11,122 $ 11,059 12/97 $ 10,505 $ 10,210 $ 10,411 $ 11,488 $ 11,424 $ 11,728 $ 10,958 $ 10,768 $ 11,402 $ 8,634 $ 8,360 $ 8,978 12/98 $ 9,859 $ 10,336 $ 11,206 $ 9,051 $ 10,162 $ 11,041 $ 10,841 $ 11,661 $ 12,758 $ 10,503 $ 11,088 $ 12,951 12/99 $ 12,617 $ 14,790 $ 18,280 $ 13,650 $ 16,163 $ 21,300 $ 13,474 $ 14,971 $ 20,187 $ 13,716 $ 14,377 $ 20,351 12/00 $ 12,569 $ 11,473 $ 17,293 $ 10,719 $ 9,728 $ 14,134 $ 12,284 $ 11,477 $ 16,694 $ 9,989 $ 8,254 $ 12,627 12/01 $ 12,053 $ 10,414 $ 15,662 $ 12,313 $ 10,210 $ 15,372 $ 10,895 $ 8,607 $ 13,262 $ 8,807 $ 6,755 $ 10,672 12/02 $ 9,040 $ 7,263 $ 11,202 $ 8,745 $ 6,981 $ 10,793 $ 10,204 $ 8,667 $ 13,218 $ 11,224 $ 9,574 $ 14,470 12/03 $ 12,696 $ 10,788 $ 16,335 $ 12,946 $ 11,390 $ 16,991 $ 12,862 $ 11,401 $ 16,945 $ 12,047 $ 10,715 $ 15,927 12/04 $ 13,464 $ 12,331 $ 18,199 $ 12,984 $ 11,490 $ 17,262 $ 13,319 $ 11,889 $ 17,950 $ 13,890 $ 12,641 $ 18,986 12/05 $ 14,088 $ 12,844 $ 19,385 $ 16,474 $ 14,688 $ 21,876 $ 15,250 $ 13,623 $ 20,323 $ 14,859 $ 13,384 $ 19,797 12/06 $ 15,786 $ 14,558 $ 21,408 $ 16,749 $ 14,918 $ 22,091 $ 18,310 $ 15,916 $ 23,750 7/31/07 $ 17,464 $ 15,089 $ 22,810 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 2000(R) Growth Index and the Lipper Small-Cap Growth Funds Average. The Russell 2000(R) Growth Index tracks the performance of common stocks that measure the performance of the securities found in the Russell 2000(R) universe with higher forecasted growth values. The Lipper Small-Cap Growth Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Growth Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 5 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MID CAP GROWTH FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Mid Cap Growth Fund (Institutional Shares) advanced 17.32% on a net of fee basis, trailing its benchmark, the Russell Midcap(R) Growth Index, which gained 21.40%. Economically sensitive sectors such as materials and industrials topped the benchmark during the period as economies thrived around the globe. On the domestic front, where the economy slowed somewhat, investors generally cheered the Federal Reserve, which held rates steady for the entire period. The positive conditions, which also featured robust merger and acquisition activity, fueled a broad rise in the mid cap market, which absorbed brief setbacks related to a selloff in China's stock market in the first quarter of 2007 and a dip due to subprime mortgage concerns in the period's closing weeks. The Fund struggled to overcome its first-half of the period underperformance, hindered by underperforming groups in the consumer discretionary sector. Specifically, stock selection in the specialty retailer, hotel and restaurant industries weighed on returns. Further diminishing gains were lagging stocks in the software and computer peripherals groups within the information technology sector. Positive contributors to performance included the aerospace and defense industry, where the Fund held an overweight stake, relative to the benchmark, in a strong collection of names. Elsewhere, a Latin American wireless player boosted the Fund's telecommunication services exposure and titanium, specialty steel and cement concerns lifted the materials sector stake. Within the energy sector, an underweight stake in the lagging oil and gas exploration and production industry added to returns, as did strong stock selection in the rallying oilfield equipment and services group. By the end of the period, the Fund had modestly shifted parts of its sector allocation from the healthcare and industrials sectors into the information technology and consumer discretionary spaces. In general, wariness over the overall health of U.S. consumers prompted an emphasis on companies that have greater exposure to global growth. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- MID CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MID-SIZE COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MID-SIZE COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY STOCKS ON AVERAGE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 17.32% 13.94% 6.05% $17,995 - -------------------------------------------------------------------------------- Class A Shares 11.09% 12.48% 5.24% $16,669 - -------------------------------------------------------------------------------- Class B Shares 11.52% 12.55% 4.93% $16,187 - -------------------------------------------------------------------------------- Class C Shares 16.07% 12.77% 5.04% $16,354 - -------------------------------------------------------------------------------- Advisor Shares 12.84% 12.61% 5.18% $16,571 - -------------------------------------------------------------------------------- Russell Midcap(R) Growth Index 1 21.40% 17.30% 7.58% $20,468 - -------------------------------------------------------------------------------- Lipper Mid-Cap Growth Funds Average 1 21.94% 14.38% 7.25% $22,518 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.09% (INSTITUTIONAL SHARES), 1.35% (CLASS A), 1.59% (ADVISOR SHARES) AND 2.09 (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE MID CAP GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 24, 1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Precision Castparts Corp. ............................................ 2.95% NII Holdings, Inc. ................................................... 2.72% Guess ?, Inc. ........................................................ 2.38% National Oilwell Varco, Inc. ......................................... 2.09% T Rowe Price Group, Inc. ............................................. 2.00% DaVita, Inc. ......................................................... 1.91% Express Scripts, Inc. ................................................ 1.90% Psychiatric Solutions, Inc. .......................................... 1.89% Martin Marietta Materials, Inc. ...................................... 1.86% GlobalSantaFe Corp. .................................................. 1.82% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 6 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MID CAP GROWTH FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Mid Cap Growth Russell MidCap(R) Lipper Mid-Cap (Institutional Shares) Growth Index Growth Funds Average ---------------------- ----------------- -------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,665 $ 10,404 $ 10,649 12/97 $ 10,804 $ 10,118 $ 10,214 $ 11,685 $ 11,325 $ 11,545 $ 10,849 $ 11,318 $ 11,550 $ 9,400 $ 9,429 $ 9,410 12/98 $ 11,180 $ 11,925 $ 11,811 $ 10,671 $ 12,332 $ 12,174 $ 11,861 $ 13,617 $ 13,624 $ 10,628 $ 12,936 $ 13,418 12/99 $ 13,087 $ 18,042 $ 18,918 $ 14,815 $ 21,853 $ 22,038 $ 14,283 $ 20,234 $ 20,916 $ 15,463 $ 20,745 $ 22,170 12/00 $ 13,994 $ 15,922 $ 18,589 $ 11,626 $ 11,928 $ 14,695 $ 13,799 $ 13,858 $ 16,563 $ 10,668 $ 10,006 $ 12,639 12/01 $ 13,115 $ 12,714 $ 15,110 $ 12,813 $ 12,489 $ 14,878 $ 10,451 $ 10,209 $ 12,783 $ 8,566 $ 8,455 $ 10,633 12/02 $ 9,124 $ 9,229 $ 11,104 $ 8,886 $ 9,228 $ 10,907 $ 10,580 $ 10,959 $ 12,807 $ 11,138 $ 11,743 $ 13,507 12/03 $ 12,547 $ 13,171 $ 15,006 $ 12,895 $ 13,808 $ 15,635 $ 12,822 $ 13,954 $ 15,775 $ 12,071 $ 13,349 $ 15,029 12/04 $ 13,591 $ 15,210 $ 16,993 $ 13,124 $ 14,956 $ 16,550 $ 13,993 $ 15,469 $ 17,090 $ 14,762 $ 16,483 $ 18,173 12/05 $ 15,126 $ 17,051 $ 18,738 $ 16,961 $ 18,348 $ 20,486 $ 16,007 $ 17,487 $ 19,329 $ 15,877 $ 17,642 $ 19,090 12/06 $ 16,643 $ 18,867 $ 20,372 $ 17,629 $ 19,614 $ 21,247 7/31/07 $ 18,844 $ 20,937 $ 22,976 $ 17,995 $ 20,468 $ 22,518 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell Midcap(R) Growth Index and the Lipper Mid-Cap Growth Funds Average. The Russell Midcap(R) Growth Index measures the performance of those Russell midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000(R) Growth Index. The Lipper Mid-Cap Growth Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell Midcap(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Mid-Cap Growth Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 7 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- QUALITY GROWTH FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Quality Growth Fund (Institutional Shares) gained 20.51% on a net of fee basis, topping its benchmark, the Russell 1000(R) Growth Index, which advanced 19.47%. The global economy continued its advance during the period, led by China, India and other emerging market countries. Meanwhile, a slowing U.S. economy caused some uneasiness, especially as core inflation readings remained stubbornly above the Federal Reserve's comfort zone. Overall, the dominant theme in the first seven months of 2007 was that strong international growth more than offset soft U.S. trends. During the period, growth stocks outpaced value names, and profit indicators suggest this trend will accelerate. The implication for style leadership is significant, as the growth indices are made up of sectors that rely on the health of the global economy, while value counterparts depend primarily on domestic activity. Importantly, a growing percentage of U.S. corporate profits are coming from abroad, a trend that is likely to persist, given the economic landscape. Not surprisingly, two highly cyclical sectors - information technology (IT) and consumer discretionary - contributed most favorably to the Fund's performance during the period. Along with strong stock selection in the IT space, the Fund benefited from a boost in exposure to tech holdings. Within the discretionary space, higher end retailers and hotel names added to gains. On the downside, the Fund's healthcare and consumer staples holdings dragged on returns as investors generally shunned more defensive positions. By the period's end, the Fund's weighted average market capitalization had grown to approximately $70 billion - in line with its benchmark - in order to capitalize on robust international activity, which is benefiting large, multinational companies. In anticipation of weakening U.S. consumer fundamentals, consumer discretionary exposure was trimmed. Additionally, an overweight stake, relative to the benchmark, in the industrials sector was maintained, as global growth prospects for the manufacturing industry remain attractive. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 20.51% 7.96% 3.74% $14,435 - -------------------------------------------------------------------------------- Class A Shares 14.16% 6.59% 2.98% $13,414 - -------------------------------------------------------------------------------- Class B Shares 14.29% 6.59% 2.66% $13,002 - -------------------------------------------------------------------------------- Class C Shares 19.30% 6.89% 2.80% $13,178 - -------------------------------------------------------------------------------- Advisor Shares 15.96% 6.71% 2.91% $13,322 - -------------------------------------------------------------------------------- Russell 1000(R) Growth Index 1 19.47% 10.18% 3.35% $13,900 - -------------------------------------------------------------------------------- S&P 500 Index 1 16.13% 11.81% 5.98% $17,868 - -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average 1 15.61% 10.45% 5.04% $16,403 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.10% (INSTITUTIONAL SHARES), 1.35% (CLASS A), 1.60% (ADVISOR SHARES) AND 2.10 (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE QUALITY GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25,1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Microsoft Corp. ...................................................... 3.60% International Business Machines Corp. ................................ 2.32% Intel Corp. .......................................................... 2.29% Baxter International, Inc. ........................................... 2.24% Cisco Systems, Inc. .................................................. 2.13% Schlumberger, Ltd. ................................................... 2.06% PepsiCo, Inc. ........................................................ 1.98% McDonald's Corp. ..................................................... 1.93% Praxair, Inc. ........................................................ 1.90% Franklin Resources, Inc. ............................................. 1.90% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 8 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- QUALITY GROWTH FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Fifth Third Quality Growth (Institutional Russell 1000(R) Lipper Large-Cap Shares) Growth Index S&P 500 Index Core Funds Average -------------- --------------- ------------- ------------------ 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,948 $ 9,878 $ 9,957 $ 10,069 12/97 $ 10,205 $ 10,028 $ 10,243 $ 10,196 $ 11,418 $ 11,547 $ 11,671 $ 11,463 $ 11,418 $ 12,072 $ 12,057 $ 11,694 $ 10,359 $ 10,975 $ 10,858 $ 10,378 12/98 $ 13,282 $ 13,910 $ 13,170 $ 12,506 $ 13,740 $ 14,794 $ 13,826 $ 12,930 $ 14,588 $ 15,363 $ 14,800 $ 13,878 $ 14,161 $ 14,800 $ 13,877 $ 12,952 12/99 $ 16,451 $ 18,522 $ 15,943 $ 14,776 $ 17,640 $ 19,842 $ 16,305 $ 15,235 $ 17,328 $ 19,306 $ 15,871 $ 14,886 $ 17,010 $ 18,268 $ 15,718 $ 14,993 12/00 $ 15,823 $ 14,368 $ 14,488 $ 14,144 $ 13,156 $ 11,365 $ 12,770 $ 12,489 $ 13,902 $ 12,322 $ 13,518 $ 13,145 $ 11,443 $ 9,930 $ 11,534 $ 11,187 12/01 $ 13,647 $ 11,434 $ 12,766 $ 12,361 $ 13,288 $ 11,138 $ 12,802 $ 12,400 $ 10,666 $ 9,058 $ 11,087 $ 10,821 $ 8,692 $ 7,695 $ 9,171 $ 8,983 12/02 $ 9,210 $ 8,246 $ 9,945 $ 9,632 $ 8,898 $ 8,158 $ 9,632 $ 9,276 $ 10,308 $ 9,325 $ 11,114 $ 10,634 $ 10,842 $ 9,690 $ 11,409 $ 10,880 12/03 $ 12,100 $ 10,699 $ 12,798 $ 12,159 $ 12,138 $ 10,783 $ 13,014 $ 12,321 $ 11,978 $ 10,992 $ 13,238 $ 12,453 $ 11,040 $ 10,417 $ 12,991 $ 12,154 12/04 $ 11,993 $ 11,373 $ 14,190 $ 13,247 $ 11,397 $ 10,908 $ 13,885 $ 12,984 $ 11,833 $ 11,177 $ 14,075 $ 13,133 $ 12,353 $ 11,625 $ 14,582 $ 13,608 12/05 $ 12,743 $ 11,971 $ 14,889 $ 13,902 $ 13,224 $ 12,342 $ 15,515 $ 14,466 $ 12,483 $ 11,860 $ 15,292 $ 14,161 $ 12,750 $ 12,327 $ 16,158 $ 14,881 12/06 $ 13,373 $ 13,057 $ 17,240 $ 15,831 $ 13,539 $ 13,213 $ 17,350 $ 15,901 $ 14,607 $ 14,118 $ 18,440 $ 16,921 7/31/07 $ 14,435 $ 13,900 $ 17,868 $ 16,403 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 1000(R) Growth Index, the S&P 500 Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Growth Index measures the performance of 1,000 securities found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Growth Index and the S&P 500 Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 9 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS FUND (FORMERLY LARGE CAP CORE) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Structured Large Cap Plus Fund (Institutional Shares) gained 12.94% on a net of fee basis, trailing its benchmark, the S&P 500 Index, which advanced 16.13%. On July 2, 2007, the Fund's strategy changed, along with its name. "Plus" in the Fund's name refers to the additional return the Fund endeavors to add both relative to the S&P 500 Index as well as relative to traditional strategies which do not have the ability to sell stock short. Selling stock short allows the Fund to more fully exploit insights in stocks that the Fund's Advisor expects to underperform and enables the Fund to establish additional long positions while keeping the Fund's net exposure to the market at a level similar to a traditional "long-only" strategy. 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, earnings quality, financial discipline, and investor sentiment. During the period, the Fund's underperformance stemmed in part from a shift in the broader market's preferences from value to growth stocks, reversing a six-year trend. During such transitions, valuation factors tend to prove ineffective, requiring strong performances from at least two of the other three characteristics. That failed to materialize, especially during the volatile final three months of the period. From a sector perspective, underweight exposure, relative to the benchmark, in the healthcare and telecommunication services sectors diminished gains. Conversely, an overweight stake in the energy sector and underweight position in the financials sector aided returns. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 12.94% 10.60% 4.67% $15,792 - -------------------------------------------------------------------------------- Class A Shares 7.05% 9.20% 3.89% $14,640 - -------------------------------------------------------------------------------- Class B Shares 6.86% 9.26% 3.62% $14,271 - -------------------------------------------------------------------------------- Class C Shares 11.93% 9.51% 3.63% $14,284 - -------------------------------------------------------------------------------- Advisor Shares 8.74% 9.31% 3.81% $14,532 - -------------------------------------------------------------------------------- Russell 1000(R) Index 1 16.45% 12.35% 6.37% $18,547 - -------------------------------------------------------------------------------- S&P 500 Index 1 16.13% 11.81% 5.98% $17,868 - -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average 1 15.61% 10.45% 5.04% $16,403 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.02% (INSTITUTIONAL SHARES), 1.27% (CLASS A), 1.53% (ADVISOR SHARES) AND 2.03 (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE STRUCTURED LARGE CAP PLUS FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT GROWTH AND INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES REFLECTS PERFORMANCE OF THE KENT GROWTH AND INCOME FUND INVESTMENT SHARES, WITH AN INCEPTION DATE OF DECEMBER 1, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE INCEPTION DATE OF CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST 1, 2005, RESPECTIVELY. THE QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Exxon Mobil Corp. .................................................... 2.94% Microsoft Corp. ...................................................... 2.70% International Business Machines Corp. ................................ 2.56% Pfizer, Inc. ......................................................... 2.19% Fifth Third Institutional Money Market Fund .......................... 2.02% Applied Materials, Inc. .............................................. 1.98% Halliburton Co. ...................................................... 1.87% eBay, Inc. ........................................................... 1.82% JPMorgan Chase & Co. ................................................. 1.81% Texas Instruments, Inc. .............................................. 1.80% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 10 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Structured Large Cap Plus (Institutional Russell 1000(R) Lipper Large-Cap Shares) Index S&P 500 Index Core Funds Average -------------- --------------- ------------- ------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,214 $ 10,051 $ 9,957 $ 10,069 12/97 $ 10,145 $ 10,353 $ 10,243 $ 10,196 $ 11,462 $ 11,737 $ 11,671 $ 11,463 $ 11,831 $ 12,031 $ 12,057 $ 11,694 $ 10,721 $ 10,790 $ 10,858 $ 10,378 12/98 $ 12,993 $ 13,151 $ 13,170 $ 12,506 $ 13,567 $ 13,693 $ 13,826 $ 12,930 $ 14,471 $ 14,668 $ 14,800 $ 13,878 $ 13,562 $ 13,700 $ 13,877 $ 12,952 12/99 $ 15,434 $ 15,901 $ 15,943 $ 14,776 $ 15,594 $ 16,595 $ 16,305 $ 15,235 $ 15,129 $ 16,025 $ 15,871 $ 14,886 $ 14,840 $ 16,140 $ 15,718 $ 14,993 12/00 $ 13,697 $ 14,662 $ 14,488 $ 14,144 $ 12,067 $ 12,820 $ 12,770 $ 12,489 $ 12,692 $ 13,629 $ 13,518 $ 13,145 $ 10,892 $ 11,553 $ 11,534 $ 11,187 12/01 $ 11,942 $ 12,837 $ 12,766 $ 12,361 $ 11,962 $ 12,932 $ 12,802 $ 12,400 $ 10,357 $ 11,191 $ 11,087 $ 10,821 $ 8,477 $ 9,299 $ 9,171 $ 8,983 12/02 $ 9,103 $ 10,057 $ 9,945 $ 9,632 $ 8,785 $ 9,762 $ 9,632 $ 9,276 $ 10,010 $ 11,298 $ 11,114 $ 10,634 $ 10,230 $ 11,636 $ 11,409 $ 10,880 12/03 $ 11,480 $ 13,063 $ 12,798 $ 12,159 $ 11,762 $ 13,312 $ 13,014 $ 12,321 $ 11,873 $ 13,499 $ 13,238 $ 12,453 $ 11,604 $ 13,254 $ 12,991 $ 12,154 12/04 $ 12,701 $ 14,553 $ 14,190 $ 13,247 $ 12,659 $ 14,276 $ 13,885 $ 12,984 $ 12,797 $ 14,569 $ 14,075 $ 13,133 $ 13,133 $ 15,144 $ 14,582 $ 13,608 12/05 $ 13,423 $ 15,465 $ 14,889 $ 13,902 $ 14,099 $ 16,160 $ 15,515 $ 14,466 $ 13,844 $ 15,892 $ 15,292 $ 14,161 $ 14,675 $ 16,695 $ 16,158 $ 14,881 12/06 $ 15,662 $ 17,856 $ 17,240 $ 15,831 $ 15,829 $ 18,073 $ 17,350 $ 15,901 $ 16,621 $ 19,138 $ 18,440 $ 16,921 7/31/07 $ 15,792 $ 18,547 $ 17,868 $ 16,403 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 1000(R) Index, the S&P 500 Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Index measures the performance of 1,000 largest securities found in the Russell universe. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Index and the S&P 500 Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 11 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- EQUITY INDEX FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Equity Index Fund (Institutional Shares) returned 15.92% on a net of fee basis, compared to its benchmark, the S&P 500 Index, which advanced 16.13%. As the Fund seeks to duplicate the returns of the S&P 500 Index, slight underperformance is expected, due primarily to Fund management fees. Opportunities to make up a modest measure of performance can arise when the Index changes its membership. During the period, 35 Index changes were implemented, including 24 related to merger and acquisition activity. Global economic growth fueled equity markets worldwide, especially as the gross domestic product growth rate in the U.S. slowed sharply in the first quarter. Issues in the subprime mortgage industry, a softening housing market and consumer spending uncertainties added to the increasingly guarded outlook for the U.S. Aided by a growing aversion to risk, large cap companies, which are generally more exposed to the world economy, reversed a lengthy streak by outperforming small cap equities. The steady drumbeat of positive economic news from around the globe bolstered the materials sector, which led the benchmark during the period. Encompassing industries such as metals and agriculture, the materials sector is highly sensitive to economic trends such as those evident during the period. Counter to the global theme, concerns over the health of the U.S. consumer dimmed prospects for companies with high exposure to consumer purchasing habits. In turn, the information technology and telecommunication services sectors, which have strong business-driven sales components, outperformed the benchmark. The lead detractor during the period was the financials sector, where the subprime mortgage mess weighed significantly on company outlooks. The traditionally defensive healthcare and consumer staples sectors also lagged in the growth-oriented market. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND INVESTS SUBSTANTIALLY ALL OF ITS ASSETS IN COMMON STOCK OF COMPANIES THAT MAKE UP THE S&P 500 INDEX. THE ADVISOR ATTEMPTS TO TRACK THE PERFORMANCE OF THE S&P 500 INDEX TO ACHIEVE A CORRELATION OF 95% BETWEEN THE PERFORMANCE OF THE FUND AND THAT OF THE S&P 500 INDEX WITHOUT TAKING INTO ACCOUNT THE FUND'S EXPENSES. IT IS IMPORTANT TO REMEMBER THAT THERE ARE RISKS ASSOCIATED WITH INDEX INVESTING, INCLUDING THE POTENTIAL RISK OF MARKET DECLINE, AS WELL AS THE RISKS ASSOCIATED WITH INVESTING IN SPECIFIC COMPANIES. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE ------- ------ ------- ------- Institutional 15.92% 11.53% 5.68% $17,378 - -------------------------------------------------------------------------------- Class A Shares 9.87% 10.12% 4.88% $16,097 - -------------------------------------------------------------------------------- Class B Shares 9.79% 10.15% 4.63% $15,720 - -------------------------------------------------------------------------------- Class C Shares 14.81% 10.44% 4.63% $15,731 - -------------------------------------------------------------------------------- Advisor Shares 11.62% 10.26% 4.82% $16,018 - -------------------------------------------------------------------------------- Select Shares 15.83% 11.44% 5.60% $17,246 - -------------------------------------------------------------------------------- Preferred Shares 15.76% 11.36% 5.53% $17,122 - -------------------------------------------------------------------------------- Trust Shares 15.69% 11.26% 5.43% $16,963 - -------------------------------------------------------------------------------- S&P 500 Index 16.13% 11.81% 5.98% $17,868 - -------------------------------------------------------------------------------- Lipper S&P 500 Index Objective Funds Average 15.47% 11.20% 5.55% $16,932 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.61% (INSTITUTIONAL SHARES), 0.86% (CLASS A), 1.11% (ADVISOR SHARES), 0.69% (SELECT SHARES), 0.76% (PREFERRED SHARES), 0.86% (TRUST SHARES), AND 1.61% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29,2001,THE QUOTED PERFORMANCE OF THE EQUITY INDEX FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INDEX EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INDEX EQUITY FUND INVESTMENT SHARES, WITH AN INCEPTION DATE OF NOVEMBER 25, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE INCEPTION DATE FOR THE CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001. PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. THE INCEPTION DATE FOR THE SELECT, PREFERRED AND TRUST SHARES IS OCTOBER 20, 2003. PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF THE SELECT, PREFERRED AND TRUST SHARES REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR SELECT, PREFERRED AND TRUST SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Exxon Mobil Corp. .................................................... 3.62% General Electric Co. ................................................. 3.01% Fifth Third Institutional Money Market Fund .......................... 2.34% Microsoft Corp. ...................................................... 1.84% AT&T, Inc. ........................................................... 1.82% Citigroup, Inc. ...................................................... 1.74% Bank of America Corp. ................................................ 1.59% Procter & Gamble Co. ................................................. 1.47% Chevron Corp. ........................................................ 1.38% Cisco Systems, Inc. .................................................. 1.32% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 12 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- EQUITY INDEX FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Equity Index Lipper S&P 500 Index (Institutional Shares) S&P 500 Index Objective Funds Average ---------------------- ------------- ----------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 9,949 $ 9,957 $ 9,950 12/97 $ 10,225 $ 10,243 $ 10,222 $ 11,640 $ 11,671 $ 11,632 $ 12,016 $ 12,057 $ 12,004 $ 10,816 $ 10,858 $ 10,807 12/98 $ 13,115 $ 13,170 $ 13,101 $ 13,762 $ 13,826 $ 13,730 $ 14,719 $ 14,800 $ 14,671 $ 13,779 $ 13,877 $ 13,740 12/99 $ 15,810 $ 15,943 $ 15,758 $ 16,160 $ 16,305 $ 16,096 $ 15,717 $ 15,871 $ 15,646 $ 15,559 $ 15,718 $ 15,481 12/00 $ 14,340 $ 14,488 $ 14,258 $ 12,629 $ 12,770 $ 12,552 $ 13,355 $ 13,518 $ 13,266 $ 11,386 $ 11,534 $ 11,304 12/01 $ 12,588 $ 12,766 $ 12,490 $ 12,611 $ 12,802 $ 12,504 $ 10,913 $ 11,087 $ 10,813 $ 9,021 $ 9,171 $ 8,937 12/02 $ 9,774 $ 9,945 $ 9,676 $ 9,463 $ 9,632 $ 9,358 $ 10,911 $ 11,114 $ 10,780 $ 11,185 $ 11,409 $ 11,047 12/03 $ 12,531 $ 12,798 $ 12,372 $ 12,734 $ 13,014 $ 12,563 $ 12,942 $ 13,238 $ 12,760 $ 12,694 $ 12,991 $ 12,505 12/04 $ 13,863 $ 14,190 $ 13,639 $ 13,558 $ 13,885 $ 13,330 $ 13,738 $ 14,075 $ 13,493 $ 14,227 $ 14,582 $ 13,959 12/05 $ 14,516 $ 14,889 $ 14,231 $ 15,126 $ 15,515 $ 14,813 $ 14,898 $ 15,292 $ 14,581 $ 15,737 $ 16,158 $ 15,384 12/06 $ 16,783 $ 17,240 $ 16,389 $ 16,884 $ 17,350 $ 16,470 $ 17,944 $ 18,440 $ 17,480 7/31/07 $ 17,378 $ 17,868 $ 16,932 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the S&P 500 Index and the Lipper S&P 500 Index Objective Funds Average. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper S&P 500 Index Objective Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500 Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper S&P 500 Index Objective Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 13 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- BALANCED FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Balanced Fund (Institutional Shares) gained 12.33% on a net of fee basis, as compared to the S&P 500 Index return of 16.13% and the Lehman Brothers Aggregate Bond Index return of 5.56%. The U.S. was one of the weakest links in an otherwise strong global economy during the period. Core inflation readings lingered stubbornly above the Federal Reserve's comfort zone, while rising gasoline and food prices weighed on consumers. Internationally, strong economic growth supported improving corporate profits, especially for large multinational companies. Late in the period, equity and bond market activity was driven largely by investor fears regarding the U.S. housing slowdown and issues related to subprime mortgages. In this environment, highly cyclical sectors led the market and the Fund benefited from solid stock selection in the information technology (IT), industrials and consumer discretionary sectors. Further enhancing performance was a reduction in exposure to the financials sector, which was the poorest performer during the period. Sectors that detracted from performance included consumer staples and utilities as investors generally shunned defense-oriented names. By the period's end, the Fund's weighted average market capitalization had increased to about $60 billion, as larger companies are better equipped to profit from healthy international economies. In the fixed income portion of the Fund, an overweight stake, relative to the benchmark, in commercial mortgage backed securities (CMBS) weighed on performance. Amid a dramatic decrease in liquidity in the market for virtually any bonds with a connection to mortgages, CMBS issues, which maintain stellar fundamentals, were swept up in the wave of selling. Residential mortgage backed securities also detracted from returns, but a mid-February decision to sell some positions to lock in gains proved advantageous, given the subsequent falloff. To the upside, a late-period move to decrease an already underweight exposure to corporate bonds enhanced performance as the landscape increasingly worsened for corporate debentures. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 12.33% 6.35% 4.00% $14,806 - -------------------------------------------------------------------------------- Class A Shares 6.39% 4.98% 3.23% $13,748 - -------------------------------------------------------------------------------- Class B Shares 6.23% 4.95% 2.92% $13,330 - -------------------------------------------------------------------------------- Class C Shares 11.26% 5.28% 3.06% $13,521 - -------------------------------------------------------------------------------- Advisor Shares 8.15% 5.13% 3.07% $13,534 - -------------------------------------------------------------------------------- S&P 500 Index 1 16.13% 11.81% 5.98% $17,868 - -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index 1 5.56% 4.40% 5.82% $17,612 - -------------------------------------------------------------------------------- Lipper Balanced Funds Average 1 12.06% 9.01% 5.65% $17,280 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.34% (INSTITUTIONAL SHARES), 1.59% (CLASS A), 1.84% (ADVISOR SHARES), AND 2.33% (CLASS B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Banc of America Funding Corp., Series 2006-G, Class 3A2 .............. 2.72% Chase Mortgage Finance Corp., Series 2005-A1, Class 2A2 .............. 2.65% American Home Mortgage Investment Trust, Series 2005-2, Class 5A4D ......................................................... 2.43% Chase Mortgage Finance Corp., Series 2003-S13, Class A16 ............. 2.31% Fifth Third Institutional Money Market Fund .......................... 2.00% Microsoft Corp. ...................................................... 1.58% Baxter International, Inc. ........................................... 1.53% Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 13A1 ......................................................... 1.51% Cisco Systems, Inc. .................................................. 1.48% Northern Trust Corp. ................................................. 1.39% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 14 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- BALANCED FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Balanced Lehman Brothers (Institutional Aggregate Lipper Balanced Shares) S&P 500 Index Bond Index Funds Average -------------- ------------- --------------- -------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,057 $ 9,957 $ 10,061 $ 10,105 12/97 $ 10,214 $ 10,243 $ 10,357 $ 10,215 $ 10,971 $ 11,671 $ 10,518 $ 11,011 $ 10,913 $ 12,057 $ 10,764 $ 11,148 $ 10,216 $ 10,858 $ 11,219 $ 10,451 12/98 $ 12,037 $ 13,170 $ 11,257 $ 11,655 $ 12,111 $ 13,826 $ 11,201 $ 11,823 $ 12,620 $ 14,800 $ 11,103 $ 12,342 $ 12,169 $ 13,877 $ 11,178 $ 11,841 12/99 $ 13,920 $ 15,943 $ 11,164 $ 12,790 $ 14,695 $ 16,305 $ 11,411 $ 13,163 $ 14,662 $ 15,871 $ 11,609 $ 13,006 $ 14,986 $ 15,718 $ 11,959 $ 13,266 12/00 $ 14,239 $ 14,488 $ 12,462 $ 13,065 $ 12,335 $ 12,770 $ 12,841 $ 12,343 $ 13,144 $ 13,518 $ 12,913 $ 12,793 $ 11,265 $ 11,534 $ 13,508 $ 11,744 12/01 $ 13,037 $ 12,766 $ 13,515 $ 12,559 $ 12,888 $ 12,802 $ 13,527 $ 12,602 $ 11,352 $ 11,087 $ 14,027 $ 11,750 $ 10,408 $ 9,171 $ 14,670 $ 10,620 12/02 $ 10,905 $ 9,945 $ 14,901 $ 11,128 $ 10,724 $ 9,632 $ 15,108 $ 10,923 $ 11,479 $ 11,114 $ 15,486 $ 12,089 $ 11,691 $ 11,409 $ 15,463 $ 12,327 12/03 $ 12,505 $ 12,798 $ 15,512 $ 13,286 $ 12,578 $ 13,014 $ 15,924 $ 13,571 $ 12,554 $ 13,238 $ 15,535 $ 13,534 $ 12,425 $ 12,991 $ 16,032 $ 13,492 12/04 $ 13,115 $ 14,190 $ 16,185 $ 14,383 $ 13,134 $ 13,885 $ 16,107 $ 14,186 $ 13,246 $ 14,075 $ 16,592 $ 14,441 $ 13,274 $ 14,582 $ 16,480 $ 14,838 12/05 $ 13,359 $ 14,889 $ 16,578 $ 15,073 $ 13,672 $ 15,515 $ 16,471 $ 15,563 $ 13,319 $ 15,292 $ 16,458 $ 15,365 $ 13,554 $ 16,158 $ 17,085 $ 15,936 12/06 $ 14,098 $ 17,240 $ 17,297 $ 16,721 $ 14,414 $ 17,350 $ 17,557 $ 16,970 $ 14,981 $ 18,440 $ 17,466 $ 17,596 7/31/07 $ 14,806 $ 17,868 $ 17,612 $ 17,280 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the S&P 500 Index, the Lehman Brothers Aggregate Bond Index and Lipper Balanced Funds Average. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lehman Brothers Aggregate Bond Index is generally representative of the bond market as a whole. The Lipper Balanced Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500 Index and the Lehman Brothers Aggregate Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Balanced Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in the underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 15 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MICRO CAP VALUE FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Micro Cap Value Fund (Institutional Shares) gained 12.53% on a net of fee basis, outperforming its benchmarks, the Russell Microcap(R) Index, which returned 10.22%; the Russell Microcap(R) Value Index, which returned 11.17%; and the Russell 2000(R) Value Index, which returned 7.67%. Following a solid start to the fiscal year, aided by strong economic growth worldwide, the micro cap market changed course dramatically over the past six months. As investors feared growing complications from subprime mortgage problems in the U.S., real estate values toppled, high yield bond values sank and riskier equities sagged. Specifically within the real estate arena, real estate investment trusts (REITs) plummeted more than 20% during the first part of 2007, erasing a substantial portion of gains posted in 2006. Holding a fraction of the benchmark's weighting in REITs, the Fund benefited from its modest exposure to the asset class, as well as solid stock selection among its REIT holdings. Elsewhere in the financials sector, banks were hit hard by the expanding credit issues, and many, like REITs, dropped from significantly overvalued levels. Within the Fund, an underweight stake, relative to the benchmark, in the banking group proved advantageous. An overweight position in the industrials sector further boosted performance, enhanced by solid stock selection in the machinery and aerospace and defense groups. Weighing on returns were underperforming stock picks in the consumer staples sector, a historically defensive area that rose as much of the market struggled. Other laggards included holdings in the materials sector and the Fund's consumer discretionary exposure, due mostly to poorly performing retailers. At the period's end, the Fund remained underweight in financial and consumer discretionary stocks and overweight in the industrials and information technology sectors. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- MICRO CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MICRO-CAP COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MICRO-CAP STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY STOCKS ON AVERAGE. VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT RECOGNIZE THEIR INTRINSIC VALUE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 --------- ------- ------ --------- ------- Institutional 2/1/98 12.53% 19.46% 13.77% $34,042 - -------------------------------------------------------------------------------- Class A Shares 2/1/98 6.63% 17.94% 12.98% $22,434 - -------------------------------------------------------------------------------- Class B Shares 2/1/98 7.13% 18.31% 12.87% $22,740 - -------------------------------------------------------------------------------- Class C Shares 2/1/98 11.28% 18.49% 13.07% $22,817 - -------------------------------------------------------------------------------- Advisor Shares 2/1/98 8.42% 18.17% 12.95% $31,781 - -------------------------------------------------------------------------------- Russell Microcap(R) Index 1 10.22% 16.74% 9.38% $18,876 - -------------------------------------------------------------------------------- Russell 2000(R)Value Index 1 7.67% 16.28% 10.36% $25,518 - -------------------------------------------------------------------------------- Russell Microcap(R) Value Index 1 11.17% 16.46% 16.52% $29,537 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.52% (INSTITUTIONAL SHARES), 1.77% (CLASS A), 2.53% (CLASS B), 2.51% (CLASS C), AND 2.01% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Fifth Third Institutional Money Market Fund .......................... 3.60% Hartmarx Corp. ....................................................... 1.98% Powell Industries, Inc. .............................................. 1.61% Symmetricom, Inc. .................................................... 1.50% Vignette Corp. ....................................................... 1.49% Stealthgas, Inc. ..................................................... 1.47% Willbros Group, Inc. ................................................. 1.41% Hersha Hospitality Trust ............................................. 1.38% LMI Aerospace, Inc. .................................................. 1.36% Radyne Corp. ......................................................... 1.32% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 16 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MICRO CAP VALUE FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Micro Cap Value Russell (Institutional Russell 2000(R) Russell Microcap(R) Microcap(R) Shares) Value Index Index Value Index -------------- --------------- ------------------- ----------- 2/1/98 $ 10,000 $ 10,000 $ 10,480 $ 11,035 $ 10,280 $ 10,636 $ 8,380 $ 8,735 12/98 $ 9,713 $ 9,527 $ 10,217 $ 8,604 $ 12,393 $ 10,028 $ 11,305 $ 9,244 12/99 $ 11,799 $ 9,385 $ 13,004 $ 9,744 $ 12,373 $ 9,934 $ 10,000 $ 10,000 $ 12,562 $ 10,663 $ 9,952 $ 10,390 12/00 $ 11,654 $ 11,528 $ 8,694 $ 10,440 $ 12,708 $ 11,640 $ 8,683 $ 11,090 $ 14,845 $ 12,994 $ 10,601 $ 13,347 $ 12,636 $ 11,262 $ 8,442 $ 11,372 12/01 $ 14,323 $ 13,144 $ 10,223 $ 13,315 $ 15,819 $ 14,403 $ 10,624 $ 14,539 $ 15,843 $ 14,098 $ 10,252 $ 15,069 $ 12,565 $ 11,097 $ 7,958 $ 11,767 12/02 $ 14,358 $ 11,643 $ 8,577 $ 12,544 $ 14,190 $ 11,051 $ 8,360 $ 12,229 $ 18,641 $ 13,562 $ 10,742 $ 15,396 $ 20,867 $ 14,610 $ 12,277 $ 17,434 12/03 $ 24,323 $ 17,001 $ 14,268 $ 20,504 $ 26,445 $ 18,178 $ 15,196 $ 22,200 $ 27,127 $ 18,332 $ 14,929 $ 22,165 $ 26,445 $ 18,359 $ 14,100 $ 21,665 12/04 $ 29,975 $ 20,783 $ 16,286 $ 24,793 $ 28,842 $ 19,957 $ 15,075 $ 23,501 $ 27,654 $ 20,970 $ 15,553 $ 24,231 $ 29,462 $ 21,618 $ 16,495 $ 25,294 12/05 $ 29,881 $ 21,762 $ 16,704 $ 25,574 $ 33,034 $ 24,701 $ 19,065 $ 29,126 $ 31,454 $ 24,033 $ 17,774 $ 28,019 $ 30,748 $ 24,646 $ 17,654 $ 28,287 12/06 $ 33,703 $ 26,871 $ 19,467 $ 31,152 $ 34,915 $ 27,264 $ 19,647 $ 31,520 $ 36,224 $ 27,891 $ 20,300 $ 32,158 7/31/07 $ 34,042 $ 25,518 $ 18,876 $ 29,537 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 2000(R) Value Index, the Russell Microcap(R) Index and the Russell Microcap(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. The Russell Microcap(R) Index is a subset of the Russell 2000(R) Index. This custom index consists of the smallest one-half of the stocks in the Russell 2000(R) Index using market capitalization as of June 30, of each year after the Russell reconstitution of the Russell 2000(R) Index. The Russell Microcap(R) Value Index measures the performance of those Russell Microcap companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000(R) Value Index, the Russell Microcap(R) Index and the Russell Microcap(R) Value Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 17 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SMALL CAP VALUE FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Small Cap Value Fund (Institutional Shares) advanced 10.77% on a net of fee basis, topping its benchmark, the Russell 2000(R) Value Index, which gained 7.67%. The optimism-fueled rally of the first six months of the period gave way to volatile moves during the second half as questions arose over the health of the U.S. economy and unknowns lurking in the mortgage and credit markets. Sharp drops in the broader stock market tempered previously lofty performance expectations, which had built up amid robust economic growth. The market's swings allowed the Fund to better capitalize on situations where sound companies were trading below fair value, which helped contribute to gains. Despite the volatility, all but one sector in the benchmark gained ground during the year. The lone laggard was financials, and the Fund benefited from an underweight stake in the group. More specifically, an underweight exposure to real estate investment trusts helped as the entire real estate industry slumped. In addition, a focus on higher quality bank stocks proved beneficial. An overweight stake in the information technology sector added to gains as a software holding was taken private and select stocks in the semiconductor space advanced. Within the energy sector, investments in oil tanker stocks proved advantageous. Alternatively, a lack of fertilizer stocks hurt the Fund's materials sector performance, as did select chemical stocks with exposure to the slowing U.S. economy. The healthcare sector also weighed as managed care providers contended with anticipated regulatory and legislative changes. With the domestic economic outlook still unclear, the Fund maintained an underweight stake in consumer discretionary names and an overweight position in IT stocks, with an emphasis on communication equipment developers. Additionally, we continued to keep an overweight stake in the traditionally defensive consumer staples sector. Strength in overseas economies also prompted overweight positions in the industrials, materials and energy sectors. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY STOCKS ON AVERAGE. VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT RECOGNIZE THEIR INTRINSIC VALUE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------ --------- ------- Institutional 4/1/03 10.77% 16.96% $19,721 - -------------------------------------------------------------------------------- Class A Shares 4/1/03 5.01% 15.29% $18,526 - -------------------------------------------------------------------------------- Class B Shares 4/1/03 4.84% 15.52% $18,690 - -------------------------------------------------------------------------------- Class C Shares 4/1/03 9.66% 15.77% $18,864 - -------------------------------------------------------------------------------- Advisor Shares 4/1/03 6.63% 15.50% $18,674 - -------------------------------------------------------------------------------- Russell 2000(R)Value Index 1 7.67% 21.03% $23,090 - -------------------------------------------------------------------------------- Lipper Small-Cap Core Funds Average 1 13.75% 20.42% $22,383 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.25% (INSTITUTIONAL SHARES), 1.50% (CLASS A), 1.75% (ADVISOR SHARES), AND 2.25% (CLASS B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- UMB Financial Corp. .................................................. 2.61% Fifth Third Institutional Money Market Fund .......................... 2.56% United Rentals, Inc. ................................................. 2.24% Ferro Corp. .......................................................... 2.16% Platinum Underwriters Holdings, Ltd. ................................. 2.13% EnerSys .............................................................. 2.13% Oil States International, Inc. ....................................... 2.09% Cabot Microelectronics Corp. ......................................... 2.09% EnPro Industries, Inc. ............................................... 2.09% Vectren Corp. ........................................................ 2.01% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 18 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SMALL CAP VALUE FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Small Cap Value Russell 2000(R) Lipper Small-Cap Core (Institutional Shares) Value Index Funds Average ---------------------- --------------- --------------------- 4/1/03 $ 10,000 $ 10,000 $ 10,000 $ 11,240 $ 12,272 $ 12,142 $ 11,860 $ 13,220 $ 13,105 12/03 $ 13,841 $ 15,384 $ 15,060 $ 14,837 $ 16,449 $ 15,967 $ 14,732 $ 16,588 $ 16,149 $ 14,346 $ 16,613 $ 15,842 12/04 $ 15,471 $ 18,806 $ 17,916 $ 16,041 $ 18,058 $ 17,341 $ 16,520 $ 18,975 $ 17,926 $ 16,741 $ 19,562 $ 18,871 12/05 $ 17,326 $ 19,692 $ 19,095 $ 18,519 $ 22,351 $ 21,412 $ 18,281 $ 21,747 $ 20,422 $ 18,460 $ 22,302 $ 20,309 12/06 $ 19,692 $ 24,315 $ 21,968 $ 20,421 $ 24,671 $ 22,584 $ 21,092 $ 25,238 $ 23,804 7/31/07 $ 19,721 $ 23,090 $ 22,383 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 2000(R) Value Index and the Lipper Small-Cap Core Funds Average. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios. The Lipper Small-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 19 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MULTI CAP VALUE FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Multi Cap Value Fund (Institutional Shares) advanced 18.93% on a net of fee basis, topping its benchmarks, the Russell 3000(R) Value Index, which returned 12.97%; and the Russell Midcap(R) Value Index, which returned 15.94%. The investor optimism that elevated the equity markets through the first 10 months of the period faded over the closing weeks as problems in the subprime mortgage market blossomed. The negative developments exacerbated worries over the health of the U.S. economy, which slowed during the first quarter of 2007. Uncertainties over the ultimate impact of the subprime mess even extended overseas, where generally robust economies had propped up stock prices, along with heightened merger and acquisition (M&A) activity. Among value stocks, which underperformed growth equities for the first time in more than five years, mid cap names modestly outgained large cap companies. Small cap stocks, hurt by the market's growing aversion to riskier assets, lagged mid cap equities significantly. During the period, the Fund upped its average weighted market cap to about $75 billion - still shy of the benchmark's $100 billion-plus figure but ideal for capturing mid cap gains. Positions that aided performance included an underweight stake, relative to the benchmark, in the financials sector, an overweight investment in information technology (IT) and solid stock selection in the consumer staples arena. The reduced exposure to financial names helped as the financials sector was the poorest performing group in the benchmark. Furthermore, the Fund held a minimal stake in names affected by the subprime mortgage problems and significant exposure to the boom in M&A transactions through capital markets companies. The Fund's IT holdings benefited from a recovery in expectations within the semiconductor industry and the sector's broader rebound from depressed earnings outlooks, while grocers and food processors boosted the staples position. Detractors included a lack of exposure to the metals industry in the materials sector and a slight underweight in the telecommunication services sector. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY STOCKS ON AVERAGE. VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT RECOGNIZE THEIR INTRINSIC VALUE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 18.93% 17.72% 10.26% $26,567 - -------------------------------------------------------------------------------- Class A Shares 12.64% 16.20% 9.44% $24,649 - -------------------------------------------------------------------------------- Class B Shares 12.71% 16.31% 9.53% $24,858 - -------------------------------------------------------------------------------- Class C Shares 17.67% 16.51% 9.53% $24,848 - -------------------------------------------------------------------------------- Advisor Shares 14.45% 16.35% 9.49% $24,761 - -------------------------------------------------------------------------------- Russell 3000(R) Value Index 1 12.97% 14.57% 8.67% $22,968 - -------------------------------------------------------------------------------- Russell Midcap(R) Value Index 1 15.94% 18.24% 11.61% $29,989 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.31% (INSTITUTIONAL SHARES), 1.56% (CLASS A), 1.81% (ADVISOR SHARES), AND 2.31% (CLASS B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF APRIL 1,1999. PRIOR TO APRIL 1, 1999, THE QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS EQUITY FUND INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. THE INCEPTION DATE FOR THE CLASS A, CLASS B AND CLASS C SHARES IS AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS A SHARES REFLECTS PERFORMANCE OF THE ADVISOR SHARES AND IS ADJUSTED FOR MAXIMUM SALES CHARGES. THE QUOTED PERFORMANCE OF CLASS B AND CLASS C SHARES REFLECTS THE PERFORMANCE OF THE MULTI CAP VALUE FUND ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP VALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/ MAXUS EQUITY FUND INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Fifth Third Institutional Money Market Fund .......................... 4.23% Exxon Mobil Corp. .................................................... 2.65% Verizon Communications, Inc. ......................................... 2.56% Marathon Oil Corp. ................................................... 2.44% American International Group, Inc. ................................... 2.25% Bank of New York Mellon Corp. (The) .................................. 2.21% JPMorgan Chase & Co. ................................................. 2.21% ConocoPhillips ....................................................... 2.19% Bank of America Corp. ................................................ 1.90% Cigna Corp. .......................................................... 1.87% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 20 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MULTI CAP VALUE FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Multi Cap Value Russell 3000(R) Russell MidCap(R) (Institutional Shares) Value Index Value Index ---------------------- --------------- ----------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,521 $ 10,285 $ 10,496 12/97 $ 10,289 $ 10,715 $ 10,923 $ 11,056 $ 11,930 $ 12,015 $ 10,675 $ 11,937 $ 11,706 $ 8,427 $ 10,487 $ 10,107 12/98 $ 9,390 $ 12,162 $ 11,478 $ 9,449 $ 12,230 $ 11,121 $ 11,218 $ 13,654 $ 12,364 $ 10,203 $ 12,336 $ 11,049 12/99 $ 10,617 $ 12,971 $ 11,466 $ 11,967 $ 13,063 $ 11,581 $ 11,869 $ 12,510 $ 11,387 $ 12,470 $ 13,489 $ 12,485 12/00 $ 13,140 $ 14,014 $ 13,665 $ 12,964 $ 13,256 $ 13,182 $ 13,739 $ 13,966 $ 14,111 $ 11,944 $ 12,413 $ 12,481 12/01 $ 14,184 $ 13,406 $ 13,982 $ 14,154 $ 14,008 $ 15,087 $ 12,976 $ 12,884 $ 14,382 $ 10,938 $ 10,441 $ 11,800 12/02 $ 11,938 $ 11,371 $ 12,634 $ 11,168 $ 10,816 $ 12,121 $ 13,761 $ 12,725 $ 14,290 $ 14,499 $ 13,040 $ 15,139 12/03 $ 16,792 $ 14,912 $ 17,443 $ 17,522 $ 15,408 $ 18,376 $ 17,569 $ 15,543 $ 18,694 $ 17,334 $ 15,764 $ 19,018 12/04 $ 19,379 $ 17,438 $ 21,578 $ 19,306 $ 17,392 $ 21,745 $ 19,708 $ 17,733 $ 22,768 $ 20,592 $ 18,409 $ 23,987 12/05 $ 20,867 $ 18,633 $ 24,307 $ 22,597 $ 19,861 $ 26,159 $ 22,286 $ 19,918 $ 26,014 $ 23,483 $ 21,089 $ 26,931 12/06 $ 25,166 $ 22,796 $ 29,221 $ 25,884 $ 23,083 $ 30,641 $ 27,717 $ 24,166 $ 31,760 7/31/07 $ 26,567 $ 22,968 $ 29,989 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 3000(R) Value Index, the Russell Midcap(R) Value Index and the Lipper Multi-Cap Value Funds Average. The Russell 3000(R) Value Index measures the performance of those companies in the Russell 3000(R) Index with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap(R) Value Index measures the performance of those Russell mid cap companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Multi-Cap Value Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 3000(R) Value and the Russell Midcap(R) Value Indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Multi-Cap Value Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 21 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Disciplined Large Cap Value Fund (Institutional Shares) returned 14.52% on a net of fee basis, outperforming its benchmark, the Russell 1000(R) Value Index, which returned 13.47%. Despite significant swings in long term interest rates and growing concerns over the pace of economic activity in the U.S. during the period, the Standard & Poor's 500 Index returned 16.13%, with growth stocks outperforming value stocks. Due in part to heightened merger and acquisition activity, which has tended to concentrate on medium sized companies, mid cap stocks outperformed both large cap and small cap stocks. Although riskier high beta stocks generally outperformed higher quality, low beta stocks during the period, risk awareness and volatility rose markedly in the period's final weeks as problems in the subprime mortgage market led to the near collapse of two large hedge funds. Against this backdrop, the best performing sectors in the Russell 1000 Value Index were materials, telecommunication services and industrials. The worst performing sectors in the benchmark were financials, healthcare and consumer staples. The Fund benefited from its sizable underweight, relative to the benchmark, in the financials sector, along with productive stock selection in the group - most notably through the avoidance of companies with significant exposure to the subprime mortgage industry. In addition, an overweight stake, in the industrials sector, particularly via holdings in companies more exposed to accelerating overseas economic activity, proved advantageous. The Fund also profited from an aversion to companies with highly leveraged balance sheets, especially in the final month of the period. Adverse stock selection in the healthcare and consumer discretionary sectors hindered relative performance, as did the Fund's emphasis on stocks with lower betas and larger market capitalizations. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- VALUE-BASED INVESTMENTS ARE SUBJECT TO THE RISK THAT THE BROAD MARKET MAY NOT RECOGNIZE THEIR INTRINSIC VALUE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------- ------ ------- ------- Institutional 14.52% 14.28% 7.95% $21,483 - -------------------------------------------------------------------------------- Class A Shares 8.45% 12.83% 7.13% $19,920 - -------------------------------------------------------------------------------- Class B Shares 8.49% 12.91% 6.95% $19,574 - -------------------------------------------------------------------------------- Class C Shares 13.34% 13.12% 6.95% $19,572 - -------------------------------------------------------------------------------- Advisor Shares 10.21% 12.96% 7.06% $19,782 - -------------------------------------------------------------------------------- Russell 1000(R) Value Index 1 13.47% 14.46% 8.56% $22,731 - -------------------------------------------------------------------------------- Lipper Equity Income Funds 1 14.59% 12.61% 7.26% $20,533 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.07% (INSTITUTIONAL SHARES), 1.32% (CLASS A), 1.57% (ADVISOR SHARES), AND 2.07% (CLASS B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE DISCIPLINED LARGE CAP VALUE FUND INCLUDES PERFORMANCE OF CERTAIN COLLECTIVELY MANAGED ACCOUNTS ADVISED BY FIFTH THIRD BANK, PRIOR TO THE DISCIPLINED LARGE CAP VALUE FUND'S COMMENCEMENT OF OPERATIONS ON JANUARY 27, 1997, AS ADJUSTED TO REFLECT THE EXPENSES ASSOCIATED WITH THE FUND (WITHOUT WAIVERS OR REIMBURSEMENTS).THESE COLLECTIVELY MANAGED ACCOUNTS WERE NOT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AND, THEREFORE, WERE NOT SUBJECT TO THE INVESTMENT RESTRICTIONS IMPOSED BY LAW ON REGISTERED MUTUAL FUNDS. IF SUCH ACCOUNTS HAD BEEN REGISTERED, THE PERFORMANCE MAY HAVE BEEN ADVERSELY AFFECTED. THE PERFORMANCE SHOWN REFLECTS THE DEDUCTION OF FEES FOR VALUE-ADDED SERVICES ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. THE PERFORMANCE ALSO REFLECTS REINVESTMENT OF ALL DIVIDENDS AND CAPITAL-GAINS DISTRIBUTIONS. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE DISCIPLINED LARGE CAP VALUE FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, JANUARY 27, 1997 AND AUGUST 1, 2005, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS PERFORMANCE OF CLASS A SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES OF CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- AT&T, Inc. ............................................................ 4.43% Bank of America Corp. ................................................. 4.13% General Electric Co. .................................................. 3.44% JPMorgan Chase & Co. .................................................. 3.44% ConocoPhillips ........................................................ 3.23% MetLife, Inc. ......................................................... 3.22% Chevron Corp. ......................................................... 3.13% Fifth Third Institutional Money Market Fund ........................... 3.11% Bank of New York Mellon Corp. (The) ................................... 2.45% Verizon Communications, Inc. .......................................... 2.25% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 22 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Disciplined Large Cap Value Russell 1000(R) Lipper Equity (Institutional Shares) Value Index Income Funds Average ---------------------- ---------------- -------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,152 $ 10,227 $ 10,206 12/97 $ 11,102 $ 10,683 $ 10,579 $ 12,386 $ 11,929 $ 11,603 $ 12,218 $ 11,982 $ 11,498 $ 11,465 $ 10,594 $ 10,512 12/98 $ 13,103 $ 12,353 $ 11,933 $ 12,551 $ 12,530 $ 11,867 $ 13,510 $ 13,943 $ 12,986 $ 11,972 $ 12,577 $ 11,887 12/99 $ 12,486 $ 13,261 $ 12,397 $ 11,642 $ 13,324 $ 12,398 $ 12,418 $ 12,700 $ 12,273 $ 13,330 $ 13,698 $ 13,135 12/00 $ 14,078 $ 14,191 $ 13,675 $ 12,565 $ 13,360 $ 13,009 $ 12,845 $ 14,012 $ 13,598 $ 11,676 $ 12,478 $ 12,293 12/01 $ 12,339 $ 13,398 $ 13,182 $ 12,545 $ 13,946 $ 13,632 $ 11,313 $ 12,758 $ 12,397 $ 9,744 $ 10,363 $ 10,284 12/02 $ 10,646 $ 11,318 $ 11,089 $ 10,083 $ 10,767 $ 10,502 $ 12,006 $ 12,627 $ 12,195 $ 12,390 $ 12,888 $ 12,423 12/03 $ 14,281 $ 14,717 $ 14,004 $ 14,692 $ 15,163 $ 14,305 $ 15,051 $ 15,296 $ 14,445 $ 15,172 $ 15,532 $ 14,532 12/04 $ 16,241 $ 17,144 $ 15,826 $ 16,305 $ 17,159 $ 15,773 $ 16,493 $ 17,447 $ 15,997 $ 17,335 $ 18,124 $ 16,515 12/05 $ 17,212 $ 18,354 $ 16,722 $ 18,222 $ 19,443 $ 17,566 $ 18,467 $ 19,557 $ 17,614 $ 19,525 $ 20,774 $ 18,521 12/06 $ 20,832 $ 22,436 $ 19,827 $ 21,074 $ 22,715 $ 20,140 $ 22,318 $ 23,834 $ 21,288 7/31/07 $ 21,483 $ 22,731 $ 20,533 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 1000(R) Value Index and the Lipper Equity Income Funds Average. The Russell 1000(R) Value Index measures the performance of 1,000 securities found in the Russell universe with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earning ratios, higher dividend yields and lower forecasted growth values. The Lipper Equity Income Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Equity Income Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 23 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL AGGRESSIVE FUND (SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third LifeModel Aggressive Fund (Institutional Shares) returned 17.59% on a net of fee basis, while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate Government/Credit Bond indices, advanced 16.12%. During the period, international equities fared better than domestic stocks as global economies enjoyed expanding growth rates and the U.S. economy slowed. Corporate earnings growth for U.S. companies remained steady, however, and helped the Standard & Poor's 500 Index establish a record high in the closing weeks. Despite the rise, the S&P 500 Index's price-to-earnings ratio (P/E) remained at a historically reasonable level. A marketwide reassessment of risk tolerances late in the period led to setbacks among small cap stocks and lower quality bonds, especially as problems within the subprime mortgage market compounded a slowing real estate industry. As a whole, fixed income investments finished with modest single-digit type returns after enduring a rocky two-month stretch at the period's end. Within the Fund, a bias toward large cap stocks aided performance, as did an emphasis on growth equities, which outperformed value stocks for the first time in five years. Exposure to international stocks helped as well. The Fund's small bond exposure weighed on performance, as credit conditions worsened through June and July. Although the market's late-period volatility could extend through the end of 2007, the Fund's high quality orientation could prove particularly timely. To navigate the ups and downs, the Fund ended the period invested in a well-diversified collection of equities and a small cash position. In addition, its limited bond exposure sat at a slightly shorter duration than the Lehman Brothers Intermediate Government/Credit Bond Index - a tactic designed to benefit from a decline in interest rates. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 --------- ------- ------ --------- ------- Institutional 8/1/02 17.59% 13.18% 13.18% $18,575 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 11.46% 11.71% 11.71% $17,400 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 11.44% 11.78% 11.78% $17,449 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 16.45% 12.05% 12.05% $17,660 - -------------------------------------------------------------------------------- Advisor Shares 8/1/02 13.19% 11.87% 11.87% $11,820 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 14.50% 11.17% 11.17% $16,982 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 5.59% 4.10% 4.10% $12,225 - -------------------------------------------------------------------------------- LifeModel Aggressive Target Neutral Asset Class Index Blend 3 16.12% 12.30% 12.30% $17,386 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.49% (INSTITUTIONAL SHARES), 0.73% (CLASS A), 0.99% (ADVISOR SHARES) AND 1.49% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCEMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS 1 - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Quality Growth Fund 20.56% Fifth Third International Equity Fund 16.95% Fifth Third Structured Large Cap Plus Fund 15.86% Fifth Third Disciplined Large Cap Value Fund 14.50% Fifth Third Mid Cap Growth Fund 9.33% Fifth Third Multi Cap Value Fund 7.32% Fifth Third Small Cap Growth Fund 4.68% Fifth Third Small Cap Value Fund 3.55% Fifth Third Intermediate Bond Fund 2.87% Fifth Third Short Term Bond Fund 1.74% Fifth Third Bond Fund 1.36% Fifth Third Institutional Money Market Fund 1.16% Fifth Third High Yield Bond Fund 0.13% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 24 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL AGGRESSIVE FUND (SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] LifeModel Lehman Brothers Aggressive Dow Jones Intermediate LifeModel Aggressive (Institutional Wilshire Government/ Target Neutral Asset Shares) 5000 Index Credit Bond Index Class Index Blend -------------- ---------- ----------------- -------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,070 $ 9,021 $ 10,331 $ 9,177 12/02 $ 9,798 $ 9,682 $ 10,506 $ 9,844 $ 9,346 $ 9,344 $ 10,664 $ 9,585 $ 10,990 $ 10,842 $ 10,954 $ 11,030 $ 11,562 $ 11,198 $ 10,952 $ 11,400 12/03 $ 13,136 $ 12,533 $ 10,959 $ 12,671 $ 13,455 $ 12,811 $ 11,230 $ 12,999 $ 13,491 $ 12,933 $ 10,946 $ 13,117 $ 13,062 $ 12,642 $ 11,242 $ 12,943 12/04 $ 14,267 $ 13,870 $ 11,292 $ 14,149 $ 14,010 $ 13,505 $ 11,193 $ 13,833 $ 14,399 $ 13,760 $ 11,471 $ 14,176 $ 15,038 $ 14,254 $ 11,411 $ 14,666 12/05 $ 15,344 $ 14,503 $ 11,470 $ 14,980 $ 16,372 $ 15,228 $ 11,426 $ 15,719 $ 15,981 $ 14,865 $ 11,450 $ 15,452 $ 16,488 $ 15,461 $ 11,816 $ 16,098 12/06 $ 17,511 $ 16,498 $ 11,938 $ 16,681 $ 17,958 $ 16,658 $ 12,128 $ 16,956 $ 19,147 $ 17,597 $ 12,110 $ 17,888 7/31/07 $ 18,575 $ 16,982 $ 12,225 $ 17,386 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 3 The LifeModel Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (90%) and the Lehman Brothers Intermediate Government/Credit Bond Index (10%). The LifeModel Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 25 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND (SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third LifeModel Moderately Aggressive Fund (Institutional Shares) returned 15.16% on a net of fee basis, while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate Government/Credit Bond indices, advanced 13.74%. During the period, international equities fared better than domestic stocks as global economies enjoyed expanding growth rates and the U.S. economy slowed. Corporate earnings growth for U.S. companies remained steady, however, and helped the Standard & Poor's 500 Index establish a record high in the closing weeks. Despite the rise, the S&P 500 Index's price-to-earnings ratio (P/E) remained at a historically reasonable level. A marketwide reassessment of risk tolerances late in the period led to setbacks among small cap stocks and lower quality bonds, especially as problems within the subprime mortgage market compounded a slowing real estate industry. As a whole, fixed income investments finished with modest single-digit type returns after enduring a rocky two-month stretch at the period's end. Within the Fund, a bias toward large cap stocks aided performance, as did an emphasis on growth equities, which outperformed value stocks for the first time in five years. Exposure to international stocks helped as well. The Fund's bond exposure weighed on performance, as credit conditions worsened through June and July. Although the market's late-period volatility could extend through the end of 2007, the Fund's diversified approach could prove particularly timely. To navigate the ups and downs, the Fund ended the period invested in a well-diversified collection of equities and a small cash position. In addition, its bond exposure sat at a slightly shorter duration than the Lehman Brothers Intermediate Government/Credit Bond Index - a tactic designed to benefit from a decline in interest rates. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 --------- ------- ------ --------- ------- Institutional 8/1/02 15.16% 12.11% 12.11% $17,707 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 9.11% 10.67% 10.67% $16,605 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 8.97% 10.74% 10.74% $16,653 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 13.98% 11.00% 11.00% $16,849 - -------------------------------------------------------------------------------- Advisor Shares 8/1/02 10.83% 10.81% 10.81% $11,522 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 14.50% 11.17% 11.17% $16,982 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index 1 5.59% 4.10% 4.10% $12,225 - -------------------------------------------------------------------------------- LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend 3 13.74% 10.52% 10.52% $16,160 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.47% (INSTITUTIONAL SHARES), 0.72% (CLASS A), 0.97% (ADVISOR SHARES) AND 1.47% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCEMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Quality Growth Fund 16.06% Fifth Third International Equity Fund 13.08% Fifth Third Structured Large Cap Plus Fund 12.67% Fifth Third Intermediate Bond Fund 12.48% Fifth Third Disciplined Large Cap Value Fund 10.97% Fifth Third Mid Cap Growth Fund 7.20% Fifth Third Short Term Bond Fund 6.94% Fifth Third Multi Cap Value Fund 5.65% Fifth Third Bond Fund 5.03% Fifth Third Small Cap Growth Fund 3.61% Fifth Third High Yield Bond Fund 3.08% Fifth Third Small Cap Value Fund 2.74% Fifth Third Institutional Money Market Fund 0.50% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 26 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] LifeModel Moderately Lehman Brothers LifeModel Moderately Aggressive Dow Jones Intermediate Aggressive (Institutional Wilshire Government/ Target Neutral Asset Shares) 5000 Index Credit Bond Index Class Index Blend -------------- ---------- ----------------- -------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,700 $ 9,021 $ 10,331 $ 9,432 12/02 $ 10,290 $ 9,682 $ 10,506 $ 10,009 $ 10,011 $ 9,344 $ 10,664 $ 9,837 $ 11,406 $ 10,842 $ 10,954 $ 11,043 $ 11,866 $ 11,198 $ 10,952 $ 11,333 12/03 $ 13,125 $ 12,533 $ 10,959 $ 12,311 $ 13,421 $ 12,811 $ 11,230 $ 12,628 $ 13,385 $ 12,933 $ 10,946 $ 12,646 $ 13,117 $ 12,642 $ 11,242 $ 12,591 12/04 $ 14,086 $ 13,870 $ 11,292 $ 13,511 $ 13,871 $ 13,505 $ 11,193 $ 13,252 $ 14,234 $ 13,760 $ 11,471 $ 13,582 $ 14,710 $ 14,254 $ 11,411 $ 13,933 12/05 $ 14,956 $ 14,503 $ 11,470 $ 14,182 $ 15,757 $ 15,228 $ 11,426 $ 14,712 $ 15,475 $ 14,865 $ 11,450 $ 14,526 $ 15,981 $ 15,461 $ 11,816 $ 15,103 12/06 $ 16,827 $ 16,498 $ 11,938 $ 15,560 $ 17,222 $ 16,658 $ 12,128 $ 15,815 $ 18,120 $ 17,597 $ 12,110 $ 16,486 7/31/07 $ 17,707 $ 16,982 $ 12,225 $ 16,160 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 3 The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (70%) and the Lehman Brothers Intermediate Government/Credit Bond Index (30%). The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 27 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATE FUND (SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third LifeModel Moderate Fund (Institutional Shares) returned 12.60% on a net of fee basis, while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate Government/Credit Bond indices, advanced 11.37%. During the period, international equities fared better than domestic stocks as global economies enjoyed expanding growth rates and the U.S. economy slowed. Corporate earnings growth for U.S. companies remained steady, however, and helped the Standard & Poor's 500 Index establish a record high in the closing weeks. Despite the rise, the S&P 500 Index's price-to-earnings ratio (P/E) remained at a historically reasonable level. The Federal Reserve kept its key lending rate at 5.25% through the entire period, but rates along the yield curve fell, with the yield on 10-year Treasuries slipping from 4.98% to 4.74%. A marketwide reassessment of risk tolerances late in the period led to setbacks among small cap stocks and lower quality bonds, especially as problems within the subprime mortgage market compounded a slowing real estate industry. As a whole, fixed income investments finished with modest single-digit type returns after enduring a rocky two-month stretch at the period's end. Within the Fund, a bias toward large cap stocks aided performance, as did an emphasis on growth equities, which outperformed value stocks for the first time in five years. Exposure to international stocks helped as well. The Fund's bond exposure weighed on performance, as credit conditions worsened through June and July. Although the market's late-period volatility could extend through the end of 2007, the Fund's diversified approach could prove particularly timely. To navigate the ups and downs, the Fund ended the period invested in a well-diversified collection of equities, bonds and a small cash position. The bond exposure sat at a slightly shorter duration than the Lehman Brothers Intermediate Government/Credit Bond Index - a tactic designed to benefit from a decline in interest rates. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 --------- ------- ------ --------- ------- Institutional 8/1/02 12.60% 9.32% 9.32% $15,611 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 5.39% 6.43% 6.43% $14,640 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 5.17% 6.42% 6.42% $14,650 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 10.08% 6.73% 6.73% $14,858 - -------------------------------------------------------------------------------- Advisor Shares 8/1/02 7.12% 6.54% 6.54% $11,191 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 14.50% 11.17% 11.17% $16,982 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index 1 5.59% 4.10% 4.10% $12,225 - -------------------------------------------------------------------------------- LifeModel Moderate Target Neutral Asset Class Index Blend 3 11.37% 8.69% 8.69% $14,972 - -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.44% (INSTITUTIONAL SHARES), 0.69% (CLASS A), 0.94% (ADVISOR SHARES) AND 1.44% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCEMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Intermediate Bond Fund 22.13% Fifth Third Short Term Bond Fund 12.67% Fifth Third Quality Growth Fund 11.72% Fifth Third International Equity Fund 9.37% Fifth Third Bond Fund 9.23% Fifth Third Structured Large Cap Plus Fund 8.65% Fifth Third Disciplined Large Cap Value Fund 8.07% Fifth Third Mid Cap Growth Fund 5.15% Fifth Third Multi Cap Value Fund 4.05% Fifth Third High Yield Bond Fund 4.05% Fifth Third Small Cap Growth Fund 2.58% Fifth Third Small Cap Value Fund 1.96% Fifth Third Institutional Money Market Fund 0.36% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 28 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATE FUND (SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] LifeModel Lehman Brothers Moderate Dow Jones Intermediate LifeModel Moderate (Institutional Wilshire Government/ Target Neutral Asset Shares) 5000 Index Credit Bond Index Class Index Blend -------------- ---------- ----------------- -------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,594 $ 9,021 $ 10,331 $ 9,687 12/02 $ 10,053 $ 9,682 $ 10,506 $ 10,164 $ 9,894 $ 9,344 $ 10,664 $ 10,083 $ 10,944 $ 10,842 $ 10,954 $ 11,039 $ 11,269 $ 11,198 $ 10,952 $ 11,247 12/03 $ 12,129 $ 12,533 $ 10,959 $ 11,938 $ 12,449 $ 12,811 $ 11,230 $ 12,242 $ 12,367 $ 12,933 $ 10,946 $ 12,166 $ 12,220 $ 12,642 $ 11,242 $ 12,223 12/04 $ 12,892 $ 13,870 $ 11,292 $ 12,873 $ 12,736 $ 13,505 $ 11,193 $ 12,665 $ 13,045 $ 13,760 $ 11,471 $ 12,981 $ 13,354 $ 14,254 $ 11,411 $ 13,202 12/05 $ 13,547 $ 14,503 $ 11,470 $ 13,391 $ 14,078 $ 15,228 $ 11,426 $ 13,732 $ 13,876 $ 14,865 $ 11,450 $ 13,617 $ 14,334 $ 15,461 $ 11,816 $ 14,128 12/06 $ 14,948 $ 16,498 $ 11,938 $ 14,474 $ 15,265 $ 16,658 $ 12,128 $ 14,708 $ 15,845 $ 17,597 $ 12,110 $ 15,147 7/31/07 $ 15,611 $ 16,982 $ 12,225 $ 14,972 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 3 The LifeModel Moderate Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (50%) and the Lehman Brothers Intermediate Government/Credit Bond Index (50%). The LifeModel Moderate Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 29 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND (SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third LifeModel Moderately Conservative Fund (Institutional Shares) returned 11.24% on a net of fee basis, while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate Government/Credit Bond indices, advanced 10.26%. During the period, the Federal Reserve kept its key lending rate at 5.25%, but rates along the yield curve fell, with the yield on 10-year Treasuries slipping from 4.98% to 4.74%. A marketwide reassessment of risk tolerances late in the period led to setbacks for lower quality bonds, especially as problems within the subprime mortgage market compounded a slowing real estate industry. As a whole, fixed income investments finished with low-single-digit returns after enduring a rocky two-month stretch at the period's end. Stocks fared much better, especially international holdings, which benefited from expanding economic growth rates around the globe. Although the U.S. economy slowed, corporate earnings growth remained steady and helped the Standard & Poor's 500 Index establish a record high. Within the Fund, a bias toward stable, large cap stocks helped performance as bonds slumped while contending with worsening credit conditions in June and July. The Fund's modest international stock exposure enhanced performance, as did an emphasis on growth equities, which outperformed value stocks for the first time in five years. A shift away from a long-term bias helped the Fund's bond returns, although a small stake in high yield bonds suffered in the market's broader downturn. Although the market's late-period volatility could extend through the end of 2007, the Fund's diversified approach could prove particularly timely. To navigate the ups and downs, the Fund ended the period invested in a well-diversified collection of bonds, equities and a small cash position. The bond exposure sat at a slightly shorter duration than the Lehman Brothers Intermediate Government/Credit Bond Index - a tactic designed to benefit from a decline in interest rates. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 ---- ------ ------ --------- ------- Institutional 8/1/02 11.24% 7.80% 7.80% $14,555 - ---------------------------------------------------------------------- Class A Shares 8/1/02 5.39% 6.43% 6.43% $13,655 - ---------------------------------------------------------------------- Class B Shares 8/1/02 5.17% 6.42% 6.42% $13,649 - ---------------------------------------------------------------------- Class C Shares 8/1/02 10.08% 6.73% 6.73% $13,849 - ---------------------------------------------------------------------- Advisor Shares 8/1/02 7.12% 6.54% 6.54% $11,006 - ---------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 14.50% 11.17% 11.17% $16,982 - ---------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index 1 5.59% 4.10% 4.10% $12,225 - ---------------------------------------------------------------------- LifeModel Moderately Conservative Target Neutral Asset Class Index Blend 3 10.26% 7.83% 7.83% $14,407 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.54% (INSTITUTIONAL SHARES), 0.79% (CLASS A), 1.04% (ADVISOR SHARES) AND 1.54% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCEMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Intermediate Bond Fund 27.18% Fifth Third Short Term Bond Fund 15.51% Fifth Third Bond Fund 11.46% Fifth Third Quality Growth Fund 9.10% Fifth Third Structured Large Cap Plus Fund 7.63% Fifth Third International Equity Fund 7.54% Fifth Third Disciplined Large Cap Value Fund 6.16% Fifth Third Mid Cap Growth Fund 4.15% Fifth Third High Yield Bond Fund 4.02% Fifth Third Multi Cap Value Fund 3.26% Fifth Third Small Cap Growth Fund 2.08% Fifth Third Small Cap Value Fund 1.58% Fifth Third Institutional Money Market Fund 0.33% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 30 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND (SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Lehman Brothers LifeModel Moderately LifeModel Moderately Intermediate Conservative Conservative Dow Jones Wilshire Government/Credit Target Neutral (Institutional Shares) 5000 Index Bond Index Asset Class Index Blend ---------------------- ------------------ ----------------- ----------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,517 $ 9,021 $ 10,331 $ 9,816 12/02 $ 9,958 $ 9,682 $ 10,506 $ 10,237 $ 9,844 $ 9,344 $ 10,664 $ 10,203 $ 10,726 $ 10,842 $ 10,954 $ 11,030 $ 10,988 $ 11,198 $ 10,952 $ 11,197 12/03 $ 11,674 $ 12,533 $ 10,959 $ 11,747 $ 11,925 $ 12,811 $ 11,230 $ 12,045 $ 11,817 $ 12,933 $ 10,946 $ 11,924 $ 11,751 $ 12,642 $ 11,242 $ 12,033 12/04 $ 12,291 $ 13,870 $ 11,292 $ 12,554 $ 12,158 $ 13,505 $ 11,193 $ 12,370 $ 12,437 $ 13,760 $ 11,471 $ 12,679 $ 12,673 $ 14,254 $ 11,411 $ 12,839 12/05 $ 12,822 $ 14,503 $ 11,470 $ 12,999 $ 13,217 $ 15,228 $ 11,426 $ 13,254 $ 13,073 $ 14,865 $ 11,450 $ 13,170 $ 13,507 $ 15,461 $ 11,816 $ 13,648 12/06 $ 14,009 $ 16,498 $ 11,938 $ 13,947 $ 14,294 $ 16,658 $ 12,128 $ 14,176 $ 14,725 $ 17,597 $ 12,110 $ 14,510 7/31/07 $ 14,555 $ 16,982 $ 12,225 $ 14,407 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31 , 2007. 3 The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (40%) and the Lehman Brothers Intermediate Government/Credit Bond Index (60%). The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 31 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL CONSERVATIVE FUND (SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third LifeModel Conservative Fund (Institutional Shares) returned 8.58% on a net of fee basis, while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate Government/Credit Bond indices, advanced 7.92%. During the period, the Federal Reserve kept its key lending rate at 5.25%, but rates along the yield curve fell, with the yield on 10-year Treasuries slipping from 4.98% to 4.74%. A marketwide reassessment of risk tolerances late in the period led to setbacks for lower quality bonds, especially as problems within the subprime mortgage market compounded a slowing real estate industry. As a whole, fixed income investments finished with low-single-digit returns after enduring a rocky two-month stretch at the period's end. Stocks fared much better, especially international holdings, which benefited from expanding economic growth rates around the globe. Although the U.S. economy slowed, corporate earnings growth remained steady and helped the Standard & Poor's 500 Index establish a record high. Within the Fund, an investment in stable, large cap stocks helped performance as bonds slumped while contending with worsening credit conditions in June and July. The Fund's small international stock exposure enhanced performance, as did an emphasis on growth equities, which outperformed value stocks for the first time in five years. A shift from a long-term bias helped the Fund's bond returns, although a small stake in high yield bonds suffered in the market's broader downturn. Although the market's late-period volatility could extend through the end of 2007, the Fund's diversified approach could prove particularly timely. To navigate the ups and downs, the Fund ended the period invested in a well-diversified collection of bonds, equities and a small cash position. The bond exposure sat at a slightly shorter duration than the Lehman Brothers Intermediate Government/Credit Bond Index - a tactic designed to benefit from a decline in interest rates. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 ---- ------ ------ --------- ------- Institutional 8/1/02 8.58% 6.15% 6.15% $13,479 - ---------------------------------------------------------------------- Class A Shares 8/1/02 2.94% 4.79% 4.79% $12,637 - ---------------------------------------------------------------------- Class B Shares 8/1/02 2.53% 4.77% 4.77% $12,626 - ---------------------------------------------------------------------- Class C Shares 8/1/02 7.59% 5.11% 5.11% $12,827 - ---------------------------------------------------------------------- Advisor Shares 8/1/02 4.64% 4.93% 4.93% $10,700 - ---------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 14.50% 11.17% 11.17% $16,982 - ---------------------------------------------------------------------- Lehman Brothers Intermediate Government/Credit Bond Index 1 5.59% 4.10% 4.10% $12,225 - ---------------------------------------------------------------------- LifeModel Conservative Target Neutral Asset Class Index Blend 3 7.92% 5.95% 5.95% $13,290 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.64% (INSTITUTIONAL SHARES), 0.89% (CLASS A), 1.14% (ADVISOR SHARES) AND 1.64% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCEMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Intermediate Bond Fund 35.85% Fifth Third Short Term Bond Fund 20.72% Fifth Third Bond Fund 15.23% Fifth Third High Yield Bond Fund 4.95% Fifth Third Quality Growth Fund 4.93% Fifth Third International Equity Fund 3.97% Fifth Third Structured Large Cap Plus Fund 3.76% Fifth Third Disciplined Large Cap Value Fund 3.38% Fifth Third Mid Cap Growth Fund 2.19% Fifth Third Multi Cap Value Fund 1.71% Fifth Third Institutional Money Market Fund 1.38% Fifth Third Small Cap Growth Fund 1.10% Fifth Third Small Cap Value Fund 0.83% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 32 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL CONSERVATIVE FUND (SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT Lehman Brothers LifeModel LifeModel Intermediate Conservative Target Conservative Dow Jones Wilshire Government/Credit Neutral Asset Class (Institutional Shares) 5000 Index Bond Index Index Blend ---------------------- ------------------ ----------------- ------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,909 $ 9,021 $ 10,331 $ 10,073 12/02 $ 10,233 $ 9,682 $ 10,506 $ 10,377 $ 10,245 $ 9,344 $ 10,664 $ 10,437 $ 10,840 $ 10,842 $ 10,954 $ 11,000 $ 10,996 $ 11,198 $ 10,952 $ 11,082 12/03 $ 11,383 $ 12,533 $ 10,959 $ 11,356 $ 11,609 $ 12,811 $ 11,230 $ 11,641 $ 11,450 $ 12,933 $ 10,946 $ 11,436 $ 11,500 $ 12,642 $ 11,242 $ 11,643 12/04 $ 11,819 $ 13,870 $ 11,292 $ 11,919 $ 11,714 $ 13,505 $ 11,193 $ 11,779 $ 11,979 $ 13,760 $ 11,471 $ 12,073 $ 12,086 $ 14,254 $ 11,411 $ 12,118 12/05 $ 12,194 $ 14,503 $ 11,470 $ 12,225 $ 12,414 $ 15,228 $ 11,426 $ 12,321 $ 12,345 $ 14,865 $ 11,450 $ 12,295 $ 12,737 $ 15,461 $ 11,816 $ 12,714 12/06 $ 13,074 $ 16,498 $ 11,938 $ 12,919 $ 13,305 $ 16,658 $ 12,128 $ 13,128 $ 13,528 $ 17,597 $ 12,110 $ 13,274 7/31/07 $ 13,479 $ 16,982 $ 12,225 $ 13,290 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 3 The LifeModel Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (20%) and the Lehman Brothers Intermediate Government/Credit Bond Index (80%). The LifeModel Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 33 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- STRATEGIC INCOME FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Strategic Income Fund (Institutional Shares) gained 4.97% on a net of fee basis, underperforming its primary benchmark, the Lehman Brothers Intermediate Credit Bond Index, which returned 5.53%, and its secondary benchmark, the Lehman Brothers U.S. Aggregate Bond Index, which returned 5.56%. While the Federal Reserve kept watch over the inflation rate and left its key lending rate alone, a meltdown in the subprime mortgage market sapped investments from across the income-generating spectrum. Real estate investment trusts (REITs), preferred stocks and corporate bonds all lost ground compared to U.S. Treasury issues, especially late in the period. Further complicating the volatile landscape was a general disregard for high quality assets, which suffered alongside much riskier bets. The Fund's exposure to REITs hurt as investors bailed out of real estate-related assets. Despite trimming the position back just before the swoon and sticking with fundamentally sound companies, the Fund's REIT holdings endured a sizeable drop, relative to the benchmark. Similarly, the Fund's allocation to preferred stocks had drifted lower after the higher-yielding equities peaked in the low-volatility environment of 2006. Market turbulence during the first half of 2007 prompted many to exit the space, however, which led to negative returns. By the period's close, the Fund's weighting in preferred issues sat at about 30% of total assets. The selloff in corporate bonds, where yields had approached historic lows in relation to Treasuries before the correction, failed to differentiate between investment grade and high yield issues. As a result, the Fund's overweight position, relative to the benchmark, in higher quality corporate bonds dropped alongside lower quality names and detracted from returns. Positive contributors included bonds issued by countries with emerging economies and floating rate notes, which generally offer an edge when the Federal Reserve holds firm longer than expected. Moving forward, the fund is positioned to capitalize when the market's volatility discounts fundamentally sound, high quality investments that further the goal of solid, consistent income generation. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 4.97% 6.13% 6.37% $18,537 - ---------------------------------------------------------------------- Class A Shares -0.50% 4.71% 5.54% $17,139 - ---------------------------------------------------------------------- Class B Shares -1.02% 4.77% 5.47% $17,025 - ---------------------------------------------------------------------- Class C Shares 3.98% 5.09% 5.42% $16,949 - ---------------------------------------------------------------------- Advisor Shares 1.14% 4.92% 5.64% $17,305 - ---------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index 1 5.56% 4.40% 5.82% $17,612 - ---------------------------------------------------------------------- Lehman Brothers Intermediate Credit Bond Index 1 5.53% 5.05% 5.84% $17,638 - ---------------------------------------------------------------------- Lipper Flexible Income Funds Average 1 3.37% 0.54% -0.88% $12,190 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.34% (INSTITUTIONAL SHARES), 1.59% (CLASS A), 1.85% (ADVISOR SHARES) AND 2.34% (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. FOR THE PERIOD PRIOR TO OCTOBER 22,2001,THE QUOTED PERFORMANCE FOR THE FIFTH THIRD STRATEGIC INCOME FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/ MAXUS INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF SEPTEMBER 1, 1998. PRIOR TO SEPTEMBER 1,1998 THE QUOTED PERFORMANCE REFLECTS THE PERFORMANCE FOR THE FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES. CLASS A, CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON APRIL 1, 2004, APRIL 1, 2004 AND OCTOBER 29, 2001, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS A, CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATES REPRESENT THE PERFORMANCE FOR ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR THE RESPECTIVE SHARE CLASS. PRIOR TO OCTOBER 22, 2001, THE QUOTED PERFORMANCE FOR ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES WITH AN INCEPTION DATE OF MARCH 10, 1985. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Preferred Stocks 31.82% Corporate Bonds 23.33% Investment Companies 8.76% Investments in Affiliates 8.49% Common Stocks 7.62% Foreign Bonds 4.55% Mortgage-Backed Securities 4.37% Real Estate Investment Trusts 3.77% U.S. Government Agencies 3.72% Asset-Backed Securities 2.17% Convertible Bonds 0.75% U.S. Treasury Obligations 0.64% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 34 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- STRATEGIC INCOME FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT Lehman Brothers Lehman Brothers Lipper Flexible Strategic Income Intermediate Aggregate Bond Income Funds (Institutional Shares) Credit Bond Index Index Average ---------------------- ----------------- --------------- --------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,116 $ 10,051 $ 10,061 $ 9,986 12/97 $ 10,301 $ 10,245 $ 10,357 $ 9,574 $ 10,540 $ 10,418 $ 10,518 $ 9,551 $ 10,583 $ 10,626 $ 10,764 $ 9,493 $ 10,571 $ 11,050 $ 11,219 $ 9,982 12/98 $ 10,669 $ 11,095 $ 11,257 $ 9,499 $ 10,598 $ 11,096 $ 11,201 $ 9,251 $ 10,920 $ 11,005 $ 11,103 $ 9,116 $ 10,570 $ 11,083 $ 11,178 $ 8,958 12/99 $ 10,058 $ 11,113 $ 11,164 $ 8,547 $ 10,483 $ 11,251 $ 11,411 $ 8,606 $ 11,110 $ 11,412 $ 11,609 $ 8,739 $ 11,439 $ 11,778 $ 11,959 $ 8,807 12/00 $ 11,721 $ 12,163 $ 12,462 $ 9,042 $ 12,359 $ 12,645 $ 12,841 $ 9,768 $ 12,769 $ 12,773 $ 12,913 $ 9,580 $ 12,984 $ 13,303 $ 13,508 $ 10,060 12/01 $ 13,260 $ 13,349 $ 13,515 $ 9,906 $ 13,435 $ 13,326 $ 13,527 $ 9,771 $ 13,806 $ 13,748 $ 14,027 $ 10,310 $ 14,079 $ 14,324 $ 14,670 $ 11,198 12/02 $ 14,304 $ 14,701 $ 14,901 $ 11,112 $ 14,589 $ 15,032 $ 15,108 $ 11,213 $ 15,375 $ 15,634 $ 15,486 $ 11,397 $ 15,277 $ 15,653 $ 15,463 $ 11,339 12/03 $ 15,781 $ 15,714 $ 15,512 $ 11,539 $ 16,375 $ 16,156 $ 15,924 $ 11,814 $ 15,613 $ 15,702 $ 15,535 $ 11,293 $ 16,378 $ 16,229 $ 16,032 $ 11,656 12/04 $ 16,876 $ 16,353 $ 16,185 $ 11,769 $ 16,502 $ 16,162 $ 16,107 $ 11,575 $ 17,115 $ 16,607 $ 16,592 $ 11,775 $ 17,140 $ 16,520 $ 16,480 $ 11,701 12/05 $ 17,203 $ 16,585 $ 16,578 $ 11,630 $ 17,469 $ 16,497 $ 16,471 $ 11,685 $ 17,352 $ 16,507 $ 16,458 $ 11,687 $ 18,119 $ 17,113 $ 17,085 $ 11,932 12/06 $ 18,625 $ 17,332 $ 17,297 $ 12,163 $ 18,910 $ 17,625 $ 17,557 $ 12,325 $ 18,724 $ 17,554 $ 17,466 $ 12,218 7/31/07 $ 18,537 $ 17,638 $ 17,612 $ 12,190 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Intermediate Credit Bond Index, the Lehman Brothers Aggregate Bond Index and the Lipper Flexible Income Funds Average. The Lehman Brothers Intermediate Credit Bond Index is generally representative of investment grade corporate bonds with maturities from one to ten years. The Lehman Brothers Aggregate Bond Index is generally representative of the bond market as a whole.The Lipper Flexible Income Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Credit Bond Index and the Lehman Brothers Aggregate Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Flexible Income Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The Ending Value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 35 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- DIVIDEND GROWTH FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Dividend Growth Fund (Institutional Shares) gained 15.22% on a net of fee basis, trailing its benchmark, the Standard & Poor's 500 Index, which returned 16.13%. Reflecting healthy economic growth rates around the globe, economically sensitive stocks thrived during the period. Sectors such as industrials and materials led the way as investors favored companies with lower quality characteristics and value traits. Emphasizing higher quality names with consistent growth prospects, the Fund missed out on some of the rallying names, but effective stock selection contributed to solid gains, especially through the second half of the year. Helping significantly were a number of holdings that either approved dividend hikes at robust rates, offered special dividends or announced large share buybacks. Sector allocations diminished the Fund's performance, including an overweight stake, relative to the benchmark, in the consumer staples sector, especially among food, beverage and tobacco stocks. An underweight in the information technology sector also hindered gains. Additionally, investments in the pharmaceuticals and biotechnology space hurt performance. Positive contributors included the consumer discretionary sector, where the Fund avoided the troubled homebuilding and automobile industries and profited from exposure to leisure companies and apparel outfits. The financials sector struggled mightily amid expanding mortgage and credit problems, but the Fund's exposure added significantly to outperformance during the period. The complete absence of mortgage brokers and home loan service providers helped, as did the effort to decrease exposure to banks and diversify into asset managers and insurance companies. Oilfield service and drilling companies lifted the Fund's energy sector position. By the period's end, the Fund's exposure to the energy and information technology (IT) sectors had been increased, with an emphasis on semiconductor-related names emerging in the IT space. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BECAUSE THE FUND MAY INVEST IN A SINGLE INDUSTRY, ITS SHARES DO NOT REPRESENT A COMPLETE INVESTMENT PROGRAM. AS A NON-DIVERSIFIED FUND, THE VALUE OF THE SHARES MAY FLUCTUATE MORE THAN SHARES INVESTED IN A BROADER RANGE OF INDUSTRIES AND COMPANIES. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 15.22% 7.81% 0.67% $10,688 - ---------------------------------------------------------------------- Class A Shares 9.21% 6.49% -0.05% $ 9,953 - ---------------------------------------------------------------------- Class B Shares 9.11% 6.44% -0.26% $ 9,740 - ---------------------------------------------------------------------- Class C Shares 14.12% 6.78% -0.26% $ 9,745 - ---------------------------------------------------------------------- Advisor Shares 10.98% 6.57% -0.13% $ 9,868 - ---------------------------------------------------------------------- S&P 500 Index 1 16.13% 11.81% 5.98% $17,868 - ---------------------------------------------------------------------- Russell 1000(R) Index 1 16.45% 12.35% 6.37% $18,547 - ---------------------------------------------------------------------- Lipper Large-Cap Core Funds Average 1 15.61% 10.45% 5.04% $16,403 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.67% (INSTITUTIONAL SHARES), 1.92% (CLASS A), 2.66% (CLASS B), 2.67% (CLASS C), AND 2.17% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO MARCH 6, 1998 THE QUOTED PERFORMANCE OF THE DIVIDEND GROWTH FUND REFLECTS THE PERFORMANCE OF THE CLASS A SHARES OF THE PINNACLE FUND. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, MARCH 9, 1998 AND AUGUST 1, 2005, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Exxon Mobil Corp. .................................................... 4.82% General Electric Co. ................................................. 3.80% Procter & Gamble Co. ................................................. 3.36% PepsiCo, Inc. ........................................................ 3.27% United Technologies Corp. ............................................ 3.12% Praxair, Inc. ........................................................ 2.74% Altria Group, Inc. ................................................... 2.61% Citigroup, Inc. ...................................................... 2.43% State Street Corp. ................................................... 2.41% Emerson Electric Co. ................................................. 2.36% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 36 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- DIVIDEND GROWTH FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT Lipper Large-Cap Dividend Growth Russell 1000(R) Core Funds (Institutional Shares) Index S&P 500 Index Average ---------------------- --------------- ------------- ---------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,971 $ 10,051 $ 9,957 $ 10,069 12/97 $ 10,391 $ 10,353 $ 10,243 $ 10,196 $ 12,027 $ 11,737 $ 11,671 $ 11,463 $ 12,241 $ 12,031 $ 12,057 $ 11,694 $ 11,056 $ 10,790 $ 10,858 $ 10,378 12/98 $ 13,813 $ 13,151 $ 13,170 $ 12,506 $ 14,337 $ 13,693 $ 13,826 $ 12,930 $ 14,718 $ 14,668 $ 14,800 $ 13,878 $ 13,961 $ 13,700 $ 13,877 $ 12,952 12/99 $ 15,421 $ 15,901 $ 15,943 $ 14,776 $ 15,972 $ 16,595 $ 16,305 $ 15,235 $ 15,405 $ 16,025 $ 15,871 $ 14,886 $ 14,708 $ 16,140 $ 15,718 $ 14,993 12/00 $ 12,374 $ 14,662 $ 14,488 $ 14,144 $ 10,066 $ 12,820 $ 12,770 $ 12,489 $ 10,513 $ 13,629 $ 13,518 $ 13,145 $ 8,904 $ 11,553 $ 11,534 $ 11,187 12/01 $ 9,676 $ 12,837 $ 12,766 $ 12,361 $ 9,412 $ 12,932 $ 12,802 $ 12,400 $ 8,006 $ 11,191 $ 11,087 $ 10,821 $ 6,693 $ 9,299 $ 9,171 $ 8,983 12/02 $ 6,803 $ 10,057 $ 9,945 $ 9,632 $ 6,543 $ 9,762 $ 9,632 $ 9,276 $ 7,242 $ 11,298 $ 11,114 $ 10,634 $ 7,262 $ 11,636 $ 11,409 $ 10,880 12/03 $ 8,188 $ 13,063 $ 12,798 $ 12,159 $ 8,424 $ 13,312 $ 13,014 $ 12,321 $ 8,436 $ 13,499 $ 13,238 $ 12,453 $ 7,754 $ 13,254 $ 12,991 $ 12,154 12/04 $ 8,558 $ 14,553 $ 14,190 $ 13,247 $ 8,075 $ 14,276 $ 13,885 $ 12,984 $ 8,266 $ 14,569 $ 14,075 $ 13,133 $ 8,676 $ 15,144 $ 14,582 $ 13,608 12/05 $ 8,940 $ 15,465 $ 14,889 $ 13,902 $ 9,244 $ 16,160 $ 15,515 $ 14,466 $ 9,112 $ 15,892 $ 15,292 $ 14,161 $ 9,602 $ 16,695 $ 16,158 $ 14,881 12/06 $ 10,105 $ 17,856 $ 17,240 $ 15,831 $ 10,202 $ 18,073 $ 17,350 $ 15,901 $ 10,885 $ 19,138 $ 18,440 $ 16,921 7/31/07 $ 10,688 $ 18,547 $ 17,868 $ 16,403 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the S&P 500 Index, the Russell 1000(R) Index and the Lipper Large-Cap Core Funds Average. The Fund changed its benchmark index from the Russell 1000(R) Index to the S&P 500 Index, effective August 1, 2005, in order to better represent the Fund's investment policies for comparison purposes. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Russell 1000(R) Index measures the performance of the 1,000 largest companies in the Russell 3000(R) Index which represents approximately 92% of the total market capitalization of the Russell 3000(R) Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000(R) companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500 Index and the Russell 1000(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 37 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- TECHNOLOGY FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Technology Fund (Institutional Shares) returned 15.41% on a net of fee basis, trailing its benchmark, the Merrill Lynch 100 Technology Index, which advanced 29.13%. The information technology (IT) sector generally outperformed the broader market during the period, buoyed by a recovery rally early on and solid demand dynamics in the latter months. After dropping dramatically during the first half of 2006, IT stocks climbed impressively following the Federal Reserve's mid-year decision to stop increasing its key interest rate. Aside from some occasional turbulence, IT stocks continued to rise through much of 2007 as companies consistently topped modest earnings expectations and raised outlooks for the coming quarters. Aiding prospects was considerable exposure to the corporate sector, which was expected to weather the U.S. economy's slowdown better than the average consumer. Within the Fund, stock selection, especially among software, Internet and healthcare technology holdings hindered performance. The software group underperformed the benchmark as a whole, and the Fund's lagging exposure was further dragged down by an overweight stake, relative to the benchmark. Among Internet-related names, the Fund missed out on some strong performers, including a couple of leading gainers from the travel space. Similarly, the Fund had no exposure to a pair of high-priced buyouts within the healthcare technology group. By the period's end, the Fund had eliminated its healthcare tech holdings, as well as positions within the biotechnology space, in order to boost its exposure to the semiconductor industry, IT service providers and electrical equipment developers. Electrical equipment stocks provided a lift during the period, as did communication equipment manufacturers. More specifically, cable producers benefited from an increase in network upgrade activity in the U.S. and abroad. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND'S VALUE AND ITS RETURNS MAY BE CONSIDERABLY MORE VOLATILE AND POSE GREATER RISKS DUE TO THE NATURE OF THE TECHNOLOGY SECTOR (SHORT PRODUCT CYCLES, PRICE COMPETITION, OBSOLESCENCE OF EXISTING TECHNOLOGY) THAN THE VALUES AND RETURNS OF OTHER MUTUAL FUNDS INVESTED IN A BROADER RANGE OF INDUSTRIES AND COMPANIES. THE FUND COULD FLUCTUATE IN PRICE MORE THAN MOST FUNDS, DUE TO THE VOLATILE NATURE OF THE TECHNOLOGY SECTOR. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 ---- ------ ------ --------- ------- Institutional 6/5/00 15.41% 15.91% -7.20% $ 5,859 - ---------------------------------------------------------------------- Class A Shares 6/5/00 9.30% 14.43% -8.09% $ 5,466 - ---------------------------------------------------------------------- Class B Shares 6/5/00 9.12% 14.53% -8.10% $ 6,326 - ---------------------------------------------------------------------- Class C Shares 6/5/00 14.16% 14.74% -8.13% $ 5,450 - ---------------------------------------------------------------------- Advisor Shares 6/5/00 10.97% 14.53% -8.10% $12,923 - ---------------------------------------------------------------------- Merrill Lynch 100 Technology Index 1 29.13% 18.65% -6.51% $ 6,178 - ---------------------------------------------------------------------- Lipper Science and Technology Funds Average 1 26.97% 14.36% 5.76% $ 4,491 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.55% (INSTITUTIONAL SHARES), 1.81% (CLASS A), 2.56% (CLASS B), 2.55% (CLASS C), AND 2.06% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATE FOR THE INSTITUTIONAL, CLASS A AND CLASS C SHARES OF THE TECHNOLOGY FUND IS JUNE 5, 2000.THE INCEPTION DATE FOR CLASS B AND ADVISOR SHARES IS OCTOBER 11, 2000 AND OCTOBER 29, 2001, RESPECTIVELY. THE QUOTED PERFORMANCE PRIOR TO THE INCEPTION OF CLASS B AND ADVISOR SHARES IS BASED ON THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Business Objects SA ADR .............................................. 5.00% Taiwan Semiconductor Manufacturing Co., Ltd. ADR ..................... 4.57% International Business Machines Corp. ................................ 4.57% Infineon Technologies AG ADR ......................................... 4.19% IAC/InterActiveCorp .................................................. 4.00% Cisco Systems, Inc. .................................................. 3.70% McAfee, Inc. ......................................................... 3.67% eBay, Inc. ........................................................... 3.49% Accenture, Ltd., Class A ............................................. 3.24% Kla-Tencor Corp. ..................................................... 2.91% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 38 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- TECHNOLOGY FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Merrill Lynch 100 Lipper Science Technology Technology and Technology (Institutional Shares) Funds Average Funds Average ---------------------- ----------------- -------------- 6/5/00 $ 10,000 $ 10,000 $ 10,000 $ 10,185 $ 11,378 $ 8,924 $ 9,895 $ 10,955 $ 8,687 12/00 $ 7,413 $ 6,655 $ 5,736 $ 4,925 $ 4,662 $ 3,936 $ 5,743 $ 5,384 $ 4,445 $ 3,709 $ 3,183 $ 2,804 12/01 $ 4,951 $ 4,495 $ 3,786 $ 4,542 $ 4,362 $ 3,521 $ 3,058 $ 3,027 $ 2,537 $ 2,114 $ 2,076 $ 1,871 12/02 $ 2,871 $ 2,632 $ 2,212 $ 2,887 $ 2,629 $ 2,203 $ 4,073 $ 3,421 $ 2,774 $ 4,628 $ 3,848 $ 3,080 12/03 $ 5,405 $ 4,458 $ 3,475 $ 5,375 $ 4,526 $ 3,523 $ 5,026 $ 4,541 $ 3,513 $ 4,214 $ 4,037 $ 3,123 12/04 $ 5,031 $ 4,787 $ 3,636 $ 4,552 $ 4,397 $ 3,312 $ 4,703 $ 4,437 $ 3,417 $ 5,163 $ 4,875 $ 3,683 12/05 $ 5,410 $ 5,084 $ 3,828 $ 6,177 $ 5,541 $ 4,128 $ 5,380 $ 5,048 $ 3,732 $ 5,405 $ 5,336 $ 3,874 12/06 $ 5,698 $ 5,655 $ 4,103 $ 5,768 $ 5,677 $ 4,152 $ 6,152 $ 6,226 $ 4,529 7/31/07 $ 5,859 $ 6,178 $ 4,491 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Merrill Lynch 100 Technology Index and the Lipper Science and Technology Funds Average. The Merrill Lynch 100 Technology Index is an equal-dollar weighted index of 100 stocks designed to measure the performance of a cross-section of large, actively traded technology stocks and American Depository Receipts. The Lipper Science and Technology Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Merrill Lynch 100 Technology Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Science and Technology Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31 , 2007. 39 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third International Equity Fund (Institutional Shares) gained 24.57% on a net of fee basis, compared to its benchmark, the MSCI EAFE(R) Index, which advanced 23.91%. While the pace of U.S. economic growth decelerated over the course of the period, growth in most of Asia and Europe picked up steam. Most notably, developing Asian countries such as China and India enjoyed robust expansion rates for the entire period. In Europe, growth surprised to the upside throughout 2006, but expectations moderated somewhat in 2007. Persistent concerns over growing inflationary pressures, however, prompted the European Central Bank to raise its key lending rate five times during the 12-month period. Japan's economy disappointed observers as weaker than expected consumer and corporate spending lingered through the first two quarters of 2007. Meanwhile, core inflation retreated into negative territory, making it harder for the Bank of Japan to consider raising interest rates to normalize the country's rate structure and to stem potential future real estate price inflation. From an equity perspective, Asian emerging markets were top performers, followed by European holdings. Japanese stocks generally lagged. Within the Fund, overweight stakes, relative to the benchmark, in economically sensitive sectors such as materials and industrials bolstered gains. An underweight position in the traditionally defensive consumer staples space also proved advantageous. Geographically speaking, underweight exposure to the United Kingdom and Switzerland helped returns. On the downside, underweight positions in the energy, healthcare and information technology sectors hindered performance, as did underweight stakes in Finland, Denmark and Australia. Investors' reassessment of risk tolerances contributed to the markets' late-period volatility. In addition, core inflation factors were trending upward at the period's close. The Fund responded by modestly trimming its exposure to higher volatility stocks. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- AN INVESTMENT IN THIS FUND ENTAILS THE SPECIAL RISKS OF INTERNATIONAL INVESTING, INCLUDING CURRENCY EXCHANGE FLUCTUATION, GOVERNMENT REGULATIONS, AND THE POTENTIAL FOR POLITICAL AND ECONOMIC INSTABILITY. THE FUND'S SHARE PRICE IS EXPECTED TO BE MORE VOLATILE THAN THAT OF A U.S.-ONLY FUND. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 24.57% 17.79% 7.46% $20,531 - ---------------------------------------------------------------------- Class A Shares 18.10% 16.36% 6.72% $19,168 - ---------------------------------------------------------------------- Class B Shares 18.36% 16.40% 6.43% $18,643 - ---------------------------------------------------------------------- Class C Shares 23.40% 16.60% 6.48% $18,735 - ---------------------------------------------------------------------- Advisor Shares 19.92% 16.46% 6.64% $19,027 - ---------------------------------------------------------------------- MSCI EAFE Index 1 23.91% 19.85% 7.33% $20,284 - ---------------------------------------------------------------------- Lipper International Large-Cap Core Funds Average 1 22.65% 17.18% 6.41% $18,427 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.36% (INSTITUTIONAL SHARES), 1.61% (CLASS A), 2.35% (CLASS B & C), AND 1.86% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 5.0% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. CLASS A SHARES WERE INITIALLY OFFERED ON AUGUST 18, 1994. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 11, 2000 AND APRIL 25, 1996, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON OCTOBER 9, 1998.THE PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON NOVEMBER 10, 2003.THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR THE PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR ADVISOR SHARES. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- Toyota Motor Corp. ................................................... 1.82% BP PLC ............................................................... 1.26% BHP Billiton, Ltd. ................................................... 1.14% Siemens AG ........................................................... 1.04% Nokia Oyj ............................................................ 1.02% E.ON AG .............................................................. 1.01% Vodafone Group PLC ................................................... 0.95% Royal Dutch Shell PLC, A Shares ...................................... 0.92% Total SA ............................................................. 0.88% Mitsubishi UFJ Financial Group, Inc. ................................. 0.86% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 40 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT Lipper International International Equity MSCI EAFE(R) Large Cap (Institutional Shares) Index Core Funds Average --------------------- ------------ ------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 9,842 $ 9,771 $ 9,847 12/97 $ 9,363 $ 9,006 $ 9,127 $ 10,833 $ 10,331 $ 10,495 $ 11,085 $ 10,441 $ 10,551 $ 9,769 $ 8,957 $ 8,803 12/98 $ 11,184 $ 10,802 $ 10,327 $ 11,323 $ 10,953 $ 10,568 $ 11,554 $ 11,257 $ 11,146 $ 11,979 $ 11,749 $ 11,560 12/99 $ 14,104 $ 13,722 $ 14,388 $ 13,771 $ 13,707 $ 14,522 $ 13,307 $ 13,188 $ 13,863 $ 12,428 $ 12,122 $ 12,720 12/00 $ 12,095 $ 11,777 $ 12,157 $ 10,728 $ 10,163 $ 10,419 $ 10,670 $ 10,057 $ 10,381 $ 9,583 $ 8,649 $ 8,793 12/01 $ 9,930 $ 9,252 $ 9,518 $ 10,084 $ 9,299 $ 9,556 $ 9,954 $ 9,102 $ 9,273 $ 8,167 $ 7,306 $ 7,365 12/02 $ 8,563 $ 7,777 $ 7,821 $ 7,849 $ 7,138 $ 7,115 $ 9,111 $ 8,514 $ 8,362 $ 9,778 $ 9,206 $ 8,885 12/03 $ 11,411 $ 10,778 $ 10,310 $ 11,593 $ 11,246 $ 10,658 $ 11,762 $ 11,270 $ 10,589 $ 11,593 $ 11,239 $ 10,564 12/04 $ 13,233 $ 12,960 $ 12,047 $ 13,085 $ 12,939 $ 11,973 $ 12,937 $ 12,809 $ 11,842 $ 14,392 $ 14,138 $ 13,099 12/05 $ 15,082 $ 14,715 $ 13,649 $ 16,456 $ 16,097 $ 14,936 $ 16,315 $ 16,210 $ 14,874 $ 16,854 $ 16,846 $ 15,400 12/06 $ 18,445 $ 18,591 $ 16,955 $ 19,290 $ 19,348 $ 17,521 $ 20,927 $ 20,587 $ 18,763 7/31/07 $ 20,531 $ 20,284 $ 18,427 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)(R) Index and the Lipper International Large-Cap Core Funds Average. The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)(R) Index is generally representative of a sample of companies of the market structure of 20 European and Pacific Basin countries. The Lipper International Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The MSCI EAFE(R) Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper International Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value- added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2007. 41 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- HIGH YIELD BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third High Yield Bond Fund (Institutional Shares) returned 5.85% on a net of fee basis, trailing its benchmark, the Merrill Lynch High Yield Master Index, which returned 7.00%. In general, high yield bonds enjoyed an impressive runup through the first 10 months of the period as investors increasingly shrugged off expanding risk factors and bid speculative issues higher. The heightened demand led to all-time lows in the spread, or difference, between high yield bonds and Treasury equivalents and paved the way for a number of lower quality issues to come to market. Many of the new issues featured looser lending covenants, which further increased the risk factors. Over the final two months of the period, growing worries over the subprime mortgage industry prompted a shift in attitudes about risk and many investors exited the high yield arena for more stable assets. As a result, values of lower quality debt sagged away from historically rich values, although notes rated CCC still managed to finish the period with a 9.50% gain. The Fund's underperformance throughout the period stemmed in part from a lack of exposure to lower quality bonds. Further hindering returns was exposure to the beleaguered homebuilding industry, where no name was safe from the selloff sparked by mortgage-related issues and decelerating home sales. Positions in the steel and metals industries, which benefited from infrastructure buildouts by municipalities and governments worldwide helped Fund performance. Select holdings in the industrial services, utility and food industries also boosted returns. As the market dynamics changed over the course of the period, the value of effective security selection once again emerged as critical in achieving success in the high yield bond market. Consisting of high quality investments that have endured rigorous credit analysis, we believe the Fund is ideally positioned for the market's uncertainties going forward. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------ --------- ------- Institutional 11/29/05 5.85% 4.45% $10,754 - ---------------------------------------------------------- Class A Shares 11/29/05 0.42% 1.13% $10,190 - ---------------------------------------------------------- Class B Shares 11/29/05 -0.08% 1.17% $10,196 - ---------------------------------------------------------- Class C Shares 11/29/05 4.72% 3.37% $10,570 - ---------------------------------------------------------- Advisor Shares 11/29/05 1.89% 1.87% $10,315 - ---------------------------------------------------------- Merrill Lynch High Yield Master Index 1 7.00% 7.66% $11,313 - ---------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.14% (INSTITUTIONAL SHARES), 1.39% (CLASS A), 2.15% (CLASS B & C), AND 1.64% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 4.75% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Corporate Bonds 85.16% Foreign Bonds 13.33% Investments in Affiliates 1.51% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 42 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- HIGH YIELD BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] High Yield Bond Merrill Lynch (Institutional Shares) High Yield Master Index ---------------------- ----------------------- 11/29/05 $ 10,000 $ 10,000 12/05 $ 10,002 $ 10,140 3/06 $ 10,231 $ 10,431 6/06 $ 10,094 $ 10,451 9/06 $ 10,420 $ 10,875 12/06 $ 10,817 $ 11,333 3/07 $ 11,096 $ 11,642 6/07 $ 11,100 $ 11,680 7/31/07 $ 10,754 $ 11,313 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Merrill Lynch High Yield Master Index, an unmanaged index which tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. The index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2007. 43 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Bond Fund (Institutional Shares) returned 4.83% on a net of fee basis, trailing its benchmark, the Lehman Brothers Aggregate Bond Index, which advanced 5.56%. Eroding values in the mortgage bond market swept through the subprime mortgage space in the period's closing months. Matters accelerated in early July, when a large Wall Street investment bank announced the collapse of two of its hedge funds due primarily to exposure to bonds holding subprime mortgages. Meanwhile, the Federal Reserve adhered to its vigilant stance against inflation and left its key lending rate alone as conditions deteriorated. The environment led to a dramatic decrease in liquidity in the market for virtually any bonds with a connection to mortgages. Unfortunately for the Fund, commercial mortgage backed securities (CMBS) were swept up in the wave of selling and contributed to the Fund's underperformance. CMBS generally offer better than average yields with strong quality, so the Fund continues to hold an overweight stake, relative to the benchmark. Residential mortgage backed securities also detracted from returns, but a mid-February decision to sell some positions to lock in gains proved advantageous, given the subsequent falloff. At the period's end, the Fund's positioning was about neutral with the benchmark in the beleaguered sector. Further weighing on returns was an underweight position in Treasury bonds and government agency securities, which rallied amid the broader market's flight to quality. To the upside, a late-period move to decrease an already underweight exposure to corporate bonds enhanced performance as the landscape increasingly worsened for corporate debentures. Moving forward, the Fund is comfortable with the bulk of its mortgage-backed securities investments, as many are seasoned, or originated when underwriting standards were tougher. Despite any possible continued turbulence in the near term, the high quality characteristics may bode well for the market's eventual turnaround. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 4.83% 3.89% 5.03% $16,330 - ---------------------------------------------------------------------- Class A Shares -0.49% 2.64% 4.26% $15,172 - ---------------------------------------------------------------------- Class B Shares -1.25% 2.49% 3.97% $14,758 - ---------------------------------------------------------------------- Class C Shares 3.65% 2.85% 3.97% $14,756 - ---------------------------------------------------------------------- Advisor Shares 0.85% 2.69% 4.15% $15,024 - ---------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index 1 5.56% 4.40% 5.82% $17,612 - ---------------------------------------------------------------------- Lipper Corporate Debt Funds A Rated Average 1 4.83% 4.50% 5.10% $16,405 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.91% (INSTITUTIONAL SHARES), 1.16% (CLASS A), 1.91% (CLASS B), 1.90% (CLASS C), AND 1.41% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 4.75% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29,2001,THE QUOTED PERFORMANCE FOR THE FIFTH THIRD BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH 20, 1995. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FIGURES FOR THE FIFTH THIRD BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MARCH 22, 1995, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001.THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001.THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR ADVISOR SHARES. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] U.S. Government Agencies 45.86% Mortgage-Backed Securities 36.02% Asset-Backed Securities 8.62% Corporate Bonds 4.8% U.S. Treasury Obligations 3.12% Foreign Bonds 1.32% Investments in Affiliates 0.26% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 44 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE CHART] Lipper Corporate Bond (Institutional Lehman Brothers Debt Funds A Shares) Aggregate Bond Index Rated Average ------------------- -------------------- ---------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,011 $ 10,061 $ 10,032 12/97 $ 10,342 $ 10,357 $ 10,338 $ 10,501 $ 10,518 $ 10,481 $ 10,770 $ 10,764 $ 10,741 $ 11,237 $ 11,219 $ 11,106 12/98 $ 11,302 $ 11,257 $ 11,104 $ 11,125 $ 11,201 $ 10,992 $ 10,893 $ 11,103 $ 10,836 $ 10,886 $ 11,178 $ 10,857 12/99 $ 10,804 $ 11,164 $ 10,805 $ 11,134 $ 11,411 $ 11,054 $ 11,198 $ 11,609 $ 11,140 $ 11,557 $ 11,959 $ 11,449 12/00 $ 12,091 $ 12,462 $ 11,859 $ 12,494 $ 12,841 $ 12,248 $ 12,512 $ 12,913 $ 12,305 $ 13,168 $ 13,508 $ 12,767 12/01 $ 12,968 $ 13,515 $ 12,788 $ 12,835 $ 13,527 $ 12,737 $ 13,381 $ 14,027 $ 13,114 $ 14,014 $ 14,670 $ 13,635 12/02 $ 14,189 $ 14,901 $ 13,886 $ 14,375 $ 15,108 $ 14,127 $ 14,660 $ 15,486 $ 14,632 $ 14,615 $ 15,463 $ 14,602 12/03 $ 14,643 $ 15,512 $ 14,694 $ 14,995 $ 15,924 $ 15,088 $ 14,609 $ 15,535 $ 14,668 $ 15,048 $ 16,032 $ 15,142 12/04 $ 15,182 $ 16,185 $ 15,321 $ 15,138 $ 16,107 $ 15,237 $ 15,556 $ 16,592 $ 15,666 $ 15,431 $ 16,480 $ 15,548 12/05 $ 15,502 $ 16,578 $ 15,613 $ 15,410 $ 16,471 $ 15,503 $ 15,372 $ 16,458 $ 15,452 $ 15,939 $ 17,085 $ 16,021 12/06 $ 16,115 $ 17,297 $ 16,223 $ 16,351 $ 17,557 $ 16,444 $ 16,229 $ 17,466 $ 16,327 7/31/07 $ 16,330 $ 17,612 $ 16,405 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Average. The Lehman Brothers Aggregate Bond Index is representative of investment-grade fixed-rate debt issues, including government, corporate, asset- backed, and mortgage-backed securities, with maturities of at least one year. The Lipper Corporate Debt Funds A Rated Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Aggregate Bond Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Corporate Debt Funds A Rated Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2007. 45 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- INTERMEDIATE BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Intermediate Bond Fund (Institutional Shares) returned 5.23% on a net of fee basis, underperforming its benchmark, the Lehman Brothers Intermediate Government/Credit Bond Index, which advanced 5.59%. The Federal Reserve left its key lending rate at 5.25% for the entire period, citing steady economic growth and wariness over a potential rise in inflation. Aside from a first quarter lull in the gross domestic product growth rate, U.S. economic indicators appeared sound, and the yield curve returned to a normal slope between 2- and 10-year maturities, featuring higher long-term yields than short-term rates. From a historical perspective, however, the curve was relatively flat, tempered by looming issues within the subprime mortgage market. In such conditions, the Fund seeks to add value by investing in high quality bonds such as mortgage-backed securities that offer yields modestly higher than U.S. Treasury issues. During the first six months of the period, this strategy worked well and helped the Fund outperform its benchmark. During the second half, however, it proved detrimental to performance as mortgage-backed issues weakened amid subprime concerns. The worries stemmed primarily from poor underwriting practices behind home loans that originated from late 2005 through early 2007. Residential mortgage backed securities (RMBS) were hardest hit, and by the end of the period, it was difficult for buyers and sellers to agree on prices for such bonds. Commercial mortgage backed securities (CMBS), which performed well early in the period, fell in sympathy with RMBS late in the period and also weighed on performance. At the period's close, a lack of bond market liquidity was a growing concern, especially in the markets for mortgage-backed securities. Positive contributions were provided by the Fund's underweight in corporate bonds, which also struggled of late, and exposure to Treasury and U.S. government agency bonds. While contending with such unprecedented market challenges, the Fund held high quality bonds that offered minimal exposure to the more problematic areas of the market. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 5.23% 3.46% 4.82% $16,011 - ---------------------------------------------------------------------- Class A Shares 1.23% 2.48% 4.18% $15,065 - ---------------------------------------------------------------------- Class B Shares -0.23% 2.61% 4.01% $14,817 - ---------------------------------------------------------------------- Class C Shares 4.16% 2.45% 3.76% $14,461 - ---------------------------------------------------------------------- Advisor Shares 2.59% 2.55% 4.10% $14,944 - ---------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 5.59% 4.10% 5.55% $17,152 - ---------------------------------------------------------------------- Lipper Intermediate Investment Grade Debt Funds Average 1 4.79% 4.18% 5.07% $16,395 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.84% (INSTITUTIONAL SHARES), 1.09% (CLASS A), 1.84% (CLASS B & C), AND 1.34% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 3.50% AND 2.00% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29,2001,THE QUOTED PERFORMANCE FOR THE FIFTH THIRD INTERMEDIATE BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD INTERMEDIATE BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF NOVEMBER 25, 1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B, CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST 1, 2005 RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Mortgage-Backed Securities 44.31% U.S. Government Agencies 19.7% U.S. Treasury Obligations 13.42% Corporate Bonds 11.24% Asset-Backed Securities 9.48% Investments in Affiliates 1.13% Foreign Bonds 0.72% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 46 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- INTERMEDIATE BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Lehman Brothers Lipper Intermediate Intermediate Investment Intermediate Bond Government/Credit Grade Debt (Institutional Shares) Bond Index Funds Average ---------------------- ----------------- ------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,058 $ 10,065 $ 10,049 12/97 $ 10,274 $ 10,281 $ 10,300 $ 10,434 $ 10,441 $ 10,461 $ 10,632 $ 10,637 $ 10,687 $ 11,026 $ 11,114 $ 11,050 12/98 $ 11,060 $ 11,146 $ 11,075 $ 10,996 $ 11,126 $ 11,023 $ 10,875 $ 11,082 $ 10,890 $ 10,956 $ 11,184 $ 10,942 12/99 $ 10,925 $ 11,189 $ 10,929 $ 11,119 $ 11,356 $ 11,136 $ 11,262 $ 11,548 $ 11,270 $ 11,593 $ 11,880 $ 11,588 12/00 $ 11,990 $ 12,320 $ 12,035 $ 12,389 $ 12,738 $ 12,413 $ 12,478 $ 12,824 $ 12,458 $ 13,067 $ 13,414 $ 12,978 12/01 $ 12,989 $ 13,426 $ 12,959 $ 12,890 $ 13,396 $ 12,933 $ 13,351 $ 13,871 $ 13,290 $ 13,876 $ 14,499 $ 13,786 12/02 $ 14,108 $ 14,744 $ 14,030 $ 14,297 $ 14,966 $ 14,245 $ 14,610 $ 15,372 $ 14,654 $ 14,531 $ 15,369 $ 14,635 12/03 $ 14,498 $ 15,378 $ 14,703 $ 14,825 $ 15,759 $ 15,059 $ 14,434 $ 15,363 $ 14,693 $ 14,789 $ 15,777 $ 15,130 12/04 $ 14,866 $ 15,845 $ 15,290 $ 14,736 $ 15,706 $ 15,200 $ 15,080 $ 16,095 $ 15,600 $ 14,999 $ 16,011 $ 15,507 12/05 $ 15,051 $ 16,094 $ 15,569 $ 15,035 $ 16,031 $ 15,485 $ 15,057 $ 16,065 $ 15,449 $ 15,531 $ 16,578 $ 16,000 12/06 $ 15,728 $ 16,748 $ 16,209 $ 15,951 $ 17,015 $ 16,435 $ 15,901 $ 16,991 $ 16,309 7/31/07 $ 16,011 $ 17,152 $ 16,395 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Average. The Lehman Brothers Aggregate Bond Index is representative of investment-grade fixed-rate debt issues, including government, corporate, asset- backed, and mortgage-backed securities, with maturities of at least one year. The Lipper Corporate Debt Funds A Rated Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Aggregate Bond Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Corporate Debt Funds A Rated Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2007. 47 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SHORT TERM BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Short Term Bond Fund (Institutional Shares) advanced 5.08% on a net of fee basis, underperforming its benchmark, the Merrill Lynch 1-3 Year Government Corporate Bond Index, which returned 5.37%. The mortgage-backed securities market crumbled through the closing months of the period, undermined by a large number of subprime home loans that were made despite shoddy underwriting. The collapse of two large hedge funds, which had significant subprime mortgage exposure, exacerbated issues, as did a softening of the broader real estate market, which resulted in a drop in home values. Through the turmoil, the Federal Reserve kept its key overnight lending rate at 5.25% while maintaining an unwavering eye on inflationary pressures. Yields on slightly longer term credits dropped, however, with 3-month and 6-month rates slipping below 5.00% and 2-year notes falling from 4.95% to 4.52% over the course of the period. Detracting from the Fund's performance were mortgage-related holdings, including some that had limited exposure to the subprime space. Unfortunately, even the Fund's high quality positions, which comprise the bulk of its mortgage investments, sold off as the industry's issues compounded and prompted investors to disregard the difference between good and bad investments. Further weighing on returns was an underweight position, relative to the benchmark, in corporate issues, which outperformed Treasuries for the full year. The 12-month figures masked poor returns during the period's final two months for corporate notes - especially lower quality issues - as investors avoided any semblance of risk. Within that time frame, the Fund's high grade holdings fared well. Providing a lift to performance was the Fund's duration positioning throughout the 12-month period as rates traded across a broad range. Further enhancing returns was a stake in commercial mortgage backed securities, which had solid fundamentals, and asset backed securities tied to auto loans and credit cards. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 5.08% 2.72% 4.29% $15,217 - ---------------------------------------------------------------------- Class A Shares 0.99% 1.75% 3.74% $14,431 - ---------------------------------------------------------------------- Class C Shares 3.93% 1.68% 3.24% $13,761 - ---------------------------------------------------------------------- Merrill Lynch 1-3 Year Government/Corporate Bond Index 1 5.37% 3.10% 4.84% $16,043 - ---------------------------------------------------------------------- Lipper Short Investment Grade Debt Funds Average 1 4.66% 2.96% 4.23% $15,185 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.80% (INSTITUTIONAL SHARES), 1.05% (CLASS A), AND 1.81% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM SALES CHARGE OF 4.75%. THE TOTAL RETURN FIGURES FOR C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.0% WITHIN THE FIRST YEAR. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29,2001,THE QUOTED PERFORMANCE FOR THE FIFTH THIRD SHORT TERM BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT SHORT TERM BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD SHORT TERM BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT SHORT TERM BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF DECEMBER 4, 1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS C SHARES WERE INITIALLY OFFERED ON AUGUST 1, 2003. THE PERFORMANCE FIGURES FOR CLASS C SHARES FOR THE PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS C SHARES. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Mortgage-Backed Securities 31.94% U.S. Government Agencies 24.97% Asset-Backed Securities 17.96% Corporate Bonds 11.58% U.S. Treasury Obligations 5.71% Investments in Affiliates 4.22% Foreign Bonds 3.4% Municipal Bonds 0.22% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 48 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SHORT TERM BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE CHART] Merrill Lynch 1-3 Year Lipper Short Short Term Bond Government/Corporate Investment Grade (Institutional Shares) Bond Index Debt Funds Average ---------------------- -------------------- ------------------ 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,069 $ 10,086 $ 10,079 12/97 $ 10,236 $ 10,253 $ 10,222 $ 10,375 $ 10,407 $ 10,368 $ 10,517 $ 10,568 $ 10,520 $ 10,780 $ 10,883 $ 10,778 12/98 $ 10,865 $ 10,971 $ 10,835 $ 10,936 $ 11,050 $ 10,927 $ 10,961 $ 11,116 $ 10,965 $ 11,086 $ 11,251 $ 11,076 12/99 $ 11,137 $ 11,328 $ 11,159 $ 11,265 $ 11,469 $ 11,293 $ 11,450 $ 11,662 $ 11,464 $ 11,725 $ 11,924 $ 11,714 12/00 $ 12,041 $ 12,242 $ 11,973 $ 12,382 $ 12,598 $ 12,301 $ 12,520 $ 12,761 $ 12,445 $ 12,919 $ 13,204 $ 12,795 12/01 $ 12,993 $ 13,308 $ 12,828 $ 12,935 $ 13,311 $ 12,853 $ 13,203 $ 13,632 $ 13,068 $ 13,473 $ 13,954 $ 13,294 12/02 $ 13,621 $ 14,119 $ 13,437 $ 13,735 $ 14,242 $ 13,564 $ 13,841 $ 14,399 $ 13,727 $ 13,898 $ 14,470 $ 13,762 12/03 $ 13,897 $ 14,507 $ 13,802 $ 14,020 $ 14,669 $ 13,950 $ 13,869 $ 14,504 $ 13,826 $ 13,989 $ 14,668 $ 13,966 12/04 $ 14,000 $ 14,683 $ 14,020 $ 13,964 $ 14,642 $ 13,988 $ 14,125 $ 14,822 $ 14,141 $ 14,148 $ 14,841 $ 14,169 12/05 $ 14,232 $ 14,940 $ 14,247 $ 14,296 $ 15,012 $ 14,322 $ 14,384 $ 15,110 $ 14,410 $ 14,663 $ 15,418 $ 14,680 12/06 $ 14,812 $ 15,575 $ 14,845 $ 15,022 $ 15,800 $ 15,042 $ 15,118 $ 15,914 $ 15,126 7/31/07 $ 15,217 $ 16,043 $ 15,185 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Merrill Lynch 1-3 Year Government/Corporate Bond Index and the Lipper Short Investment Grade Debt Funds Average. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is composed of U.S. Treasury issues and publicly issued debt of U.S. Government agencies with maturities of one to three years. The Lipper Short Investment Grade Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Short Investment Grade Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 49 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third U.S. Government Bond Fund (Institutional Shares) returned 5.07% on a net of fee basis, trailing its benchmark, the Lehman Brothers Intermediate Government Bond Index, which gained 5.61%. Investors' appetite for risk eroded during the period as the value of bonds backed by subprime mortgages plummeted. A number of hedge funds acknowledged complications as a result, and as conditions worsened, higher quality issues were increasingly tripped up. In turn, the entire bond market struggled with liquidity issues. Meanwhile, the Federal Reserve held its key overnight lending rate steady at 5.25% and maintained a close watch on inflationary pressures. On the longer end of the yield curve, 10-year rates bounced from below 4.50% to over 5.00% before settling at 4.74%. Rates along the curve generally fell during the period and resulted in a standard slope between 2-year and 10-year issues, with long-term rates higher than short-term yields. Holding a substantial amount of mortgage-related bonds, the Fund suffered as the market seized in the closing months of the period. Designed to perform better in low volatility markets, the Fund's structured holdings dropped amid the June and July spike in volatility and reversed 10 months of outperformance. Even positions in very high quality mortgage bonds backed by government agencies Freddie Mac and Fannie Mae slumped in the selloff, albeit not as badly as issues with overexposure to poor quality home loans. On the upside, the Fund benefited from its U.S. Treasury holdings and some long-term positions in the Financing Corporation, which is also known as FICO and helps finance the Federal Savings & Loan Insurance Corporation. Challenges will likely continue in the bond markets over the near term as the true impact of the subprime mortgage meltdown is calculated. Meanwhile, the Fund will continue to attempt to maintain a high quality profile while striving to outperform its benchmark. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S PORTFOLIO AND NOT THE FUNDS SHARES. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 5.07% 2.99% 4.70% $15,823 - ---------------------------------------------------------------------- Class A Shares -0.23% 1.72% 3.96% $14,740 - ---------------------------------------------------------------------- Class C Shares 4.05% 1.96% 3.71% $14,401 - ---------------------------------------------------------------------- Lehman Brothers Intermediate Government Bond Index 1 5.61% 3.36% 5.29% $16,737 - ---------------------------------------------------------------------- Lipper Short-Intermediate U.S. Government Bond Funds Average 1 4.64% 2.63% 4.41% $15,328 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.05% (INSTITUTIONAL SHARES), 1.30% (CLASS A), AND 2.05% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM SALES CHARGE OF 4.75%. THE TOTAL RETURN FIGURES FOR C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) 1.0% WITHIN THE FIRST YEAR. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON AUGUST 11, 1998. THE PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES. CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON APRIL 24, 1996 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS C AND ADVISOR SHARES. - -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] Freddie Mac 24.87% Government National Mortgage Association 22.01% Investments in Affiliates 20.17% Fannie Mae 11.03% Small Business Administration 10.99% Fannie Mae Prepayment Link Note 4.97% Federal Home Loan Bank System 4.97% U.S. Treasury Obligations 0.99% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 50 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE CHART] Lipper Short Lehman Brothers Intermediate U.S. U.S. Government Bond Intermediate Government Government Bond (Institutional Shares) Bond Index Funds Average --------------------- ----------------------- ------------------ 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,064 $ 10,071 $ 10,071 12/97 $ 10,267 $ 10,294 $ 10,254 $ 10,423 $ 10,448 $ 10,388 $ 10,594 $ 10,642 $ 10,548 $ 11,034 $ 11,138 $ 10,922 12/98 $ 11,037 $ 11,165 $ 10,962 $ 11,002 $ 11,135 $ 10,968 $ 10,952 $ 11,113 $ 10,915 $ 11,056 $ 11,226 $ 11,006 12/99 $ 11,057 $ 11,221 $ 11,020 $ 11,181 $ 11,404 $ 11,167 $ 11,362 $ 11,612 $ 11,343 $ 11,679 $ 11,923 $ 11,617 12/00 $ 12,105 $ 12,396 $ 11,996 $ 12,453 $ 12,768 $ 12,311 $ 12,482 $ 12,820 $ 12,382 $ 13,085 $ 13,458 $ 12,919 12/01 $ 13,033 $ 13,440 $ 12,894 $ 12,960 $ 13,405 $ 12,904 $ 13,437 $ 13,923 $ 13,312 $ 14,055 $ 14,593 $ 13,783 12/02 $ 14,176 $ 14,735 $ 13,909 $ 14,308 $ 14,872 $ 14,018 $ 14,500 $ 15,123 $ 14,185 $ 14,422 $ 15,103 $ 14,135 12/03 $ 14,388 $ 15,073 $ 14,122 $ 14,661 $ 15,406 $ 14,351 $ 14,332 $ 15,050 $ 14,078 $ 14,611 $ 15,389 $ 14,319 12/04 $ 14,676 $ 15,422 $ 14,354 $ 14,587 $ 15,317 $ 14,272 $ 14,900 $ 15,672 $ 14,513 $ 14,855 $ 15,590 $ 14,451 12/05 $ 14,907 $ 15,683 $ 14,502 $ 14,873 $ 15,636 $ 14,485 $ 14,913 $ 15,683 $ 14,515 $ 15,344 $ 16,141 $ 14,882 12/06 $ 15,501 $ 16,284 $ 15,013 $ 15,735 $ 16,532 $ 15,219 $ 15,688 $ 16,533 $ 15,201 7/31/07 $ 15,823 $ 16,737 $ 15,328 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Intermediate Government Bond Index and the Lipper Short-Intermediate U.S. Government Bond Funds Average. The Lehman Brothers Intermediate Government Bond Index is generally representative of intermediate-term government bonds. The Lipper Short-Intermediate U.S. Government Bond Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Government Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Short-Intermediate U.S. Government Bond Funds Average and the Fund's performance reflect the deduction for fees for these value-added services Investors cannot invest directly in an index, although they can invest in the underlying securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 51 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Municipal Bond Fund (Institutional Shares) returned 4.04% on a net of fee basis, compared to its benchmark, the Lehman Brothers Municipal Bond Index, which returned 4.26%. Although municipal bonds don't have direct mortgage exposure, a number of issues resulting from complications in the subprime home loan market pulled down the municipal bond market during the last two months of the period. Perhaps most importantly, spreads, or the difference between the yields on municipal bonds and market benchmarks, expanded greatly as values on municipal credits subsided from prior levels (yields and prices move in opposite direction). The change was sharpest in low quality issues as investors adjusted risk tolerances. In addition, municipal bonds backed by large brokerage firms sagged as questions about the soundness of the investment banks arose amid the collapse of some high profile hedge funds. Similarly, monoline insurers, which help guarantee payments on lower grade municipal issues, dropped as concerns over the companies' subprime market exposure grew. Prior to the emerging troubles, supply levels soared through the end of 2006 and through the first five months of 2007. Although issuance tapered in June and July, the market saw a 25.75% increase in volume through the first seven months of 2007, led by a large increase in refinancing volumes. Within the Fund, an underweight in the long end of the curve proved advantageous as longer dated issues lagged the benchmark. The Fund's high quality emphasis further enhanced gains as higher rated bonds fared better in the late-period selloff. Accordingly, the Fund's lower rated credits underperformed. In general, spreads in the BBB-rated category remained unattractive, although opportunities were starting to appear in the higher quality A-rated space by the period's close. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 4.04% 3.61% 4.52% $15,552 - ---------------------------------------------------------------------- Class A Shares -1.16% 2.35% 3.75% $14,449 - ---------------------------------------------------------------------- Class B Shares -1.97% 2.26% 3.46% $14,053 - ---------------------------------------------------------------------- Class C Shares 3.04% 2.61% 3.48% $14,082 - ---------------------------------------------------------------------- Advisor Shares 0.10% 2.43% 3.67% $14,333 - ---------------------------------------------------------------------- Lehman Brothers Municipal Bond Index 1 4.26% 4.50% 5.23% $16,654 - ---------------------------------------------------------------------- Lipper General Municipal Debt Funds Average 1 3.45% 3.87% 4.31% $15,174 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 1.13% (INSTITUTIONAL SHARES), 1.38% (CLASS A), 2.13% (CLASS B), 2.12% (CLASS C), AND 1.63% (ADVISOR SHARES). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES AND ADVISOR SHARES REFLECT THE MAXIMUM SALES CHARGE OF 4.75% AND 3.25% RESPECTIVELY. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT TAX-FREE INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH 20, 1995. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD MUNICIPAL BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT TAX-FREE INCOME FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MARCH 31, 1995, AND IS ADJUSTED TO REFLECT APPLICABLE SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001.THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29,2001.THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR ADVISOR SHARES. - -------------------------------------------------------------------------------- BOND QUALITY AS OF JULY 31, 2007 AS REPRESENTED BY STANDARD AND POOR'S/MOODY'S RATING AGENCIES - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 63.5% AA+/Aa1 6.37% AA/Aa2 6.67% AA-/Aa3 9.05% A+/A1 2.26% A/A2 3.3% A-/A3 2.22% BBB+/Baa1 1.56% BBB-/Baa3 4.57% Net Cash and Equivalents 0.5% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 52 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE CHART] Lipper General Municipal Bond Lehman Brothers Municipal Debt (Institutional Shares) Municipal Bond Index Funds Average ---------------------- -------------------- -------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 9,993 $ 10,024 $ 10,010 12/97 $ 10,259 $ 10,296 $ 10,293 $ 10,336 $ 10,414 $ 10,395 $ 10,465 $ 10,573 $ 10,531 $ 10,822 $ 10,897 $ 10,835 12/98 $ 10,845 $ 10,963 $ 10,847 $ 10,895 $ 11,060 $ 10,902 $ 10,650 $ 10,865 $ 10,654 $ 10,600 $ 10,821 $ 10,498 12/99 $ 10,491 $ 10,737 $ 10,327 $ 10,827 $ 11,051 $ 10,624 $ 10,973 $ 11,218 $ 10,736 $ 11,230 $ 11,490 $ 10,986 12/00 $ 11,792 $ 11,992 $ 11,451 $ 12,011 $ 12,258 $ 11,672 $ 12,057 $ 12,338 $ 11,736 $ 12,374 $ 12,684 $ 12,032 12/01 $ 12,271 $ 12,607 $ 11,907 $ 12,386 $ 12,725 $ 12,005 $ 12,851 $ 13,191 $ 12,404 $ 13,482 $ 13,817 $ 12,937 12/02 $ 13,455 $ 13,817 $ 12,889 $ 13,597 $ 13,983 $ 12,969 $ 13,947 $ 14,344 $ 13,312 $ 13,930 $ 14,356 $ 13,313 12/03 $ 14,086 $ 14,552 $ 13,514 $ 14,280 $ 14,803 $ 13,707 $ 13,912 $ 14,453 $ 13,385 $ 14,405 $ 15,016 $ 13,861 12/04 $ 14,519 $ 15,204 $ 14,030 $ 14,458 $ 15,198 $ 14,015 $ 14,818 $ 15,643 $ 14,396 $ 14,759 $ 15,624 $ 14,376 12/05 $ 14,806 $ 15,738 $ 14,469 $ 14,816 $ 15,777 $ 14,511 $ 14,790 $ 15,782 $ 14,505 $ 15,301 $ 16,319 $ 14,977 12/06 $ 15,447 $ 16,500 $ 15,128 $ 15,533 $ 16,633 $ 15,223 $ 15,422 $ 16,523 $ 15,104 7/31/07 $ 15,552 $ 16,654 $ 15,174 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Municipal Bond Index and the Lipper General Municipal Debt Funds Average. The Lehman Brothers Municipal Bond Index is generally representative of the municipal bond market. The Lipper General Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Municipal Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as invest- ment management and fund accounting fees. However, the Lipper General Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2007. 53 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Intermediate Municipal Bond Fund (Institutional Shares) returned 3.59% on a net of fee basis, underperforming its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which returned 3.98%. Although municipal bonds don't have direct mortgage exposure, a number of issues resulting from complications in the subprime home loan market pulled down the municipal bond market during the last two months of the period. Perhaps most importantly, spreads, or the difference between the yields on municipal bonds and market benchmarks, expanded greatly as values on municipal credits subsided from prior levels (yields and prices move in opposite direction). The change was sharpest in low quality issues as investors adjusted risk tolerances. In addition, municipal bonds backed by large brokerage firms sagged as questions about the soundness of the investment banks arose amid the collapse of some high profile hedge funds. Similarly, monoline insurers, which help guarantee payments on lower grade municipal issues, dropped as concerns over the companies' subprime market exposure grew. Prior to the emerging troubles, supply levels soared through the end of 2006 and through the first five months of 2007. Although issuance tapered in June and July, the market saw a 25.75% increase in volume through the first seven months of 2007, led by a large increase in refinancing volumes. Within the Fund, a slightly longer duration than the benchmark hindered performance as shorter dated issues rallied in anticipation of a Federal Reserve rate cut. Conversely, the Fund's high quality emphasis enhanced gains as higher rated bonds fared better in the selloff. During the period, the Fund shed some longer term issues on valuation concerns and sought opportunities in the higher quality A-rated space. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 3.59% 2.75% 3.92% $14,690 - ---------------------------------------------------------------------- Class A Shares -0.35% 1.76% 3.29% $13,818 - ---------------------------------------------------------------------- Class B Shares -1.64% 1.93% 3.15% $13,635 - ---------------------------------------------------------------------- Class C Shares 2.55% 1.73% 2.88% $13,279 - ---------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index 1 3.98% 3.52% 4.63% $15,715 - ---------------------------------------------------------------------- Lipper Intermediate Municipal Debt Funds Average 1 3.22% 3.12% 4.14% $14,841 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.89% (INSTITUTIONAL SHARES), 1.15% (CLASS A), 1.90% (CLASS B), AND 1.89% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECTS THE MAXIMUM SALES CHARGE OF 3.50%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29,2001,THE QUOTED PERFORMANCE FOR THE FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE TAX-FREE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF DECEMBER 16, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FIGURES FOR THE FIFTH THIRD INTERMEDIATE BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE TAX-FREE FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF DECEMBER 18, 1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR THE KENT INTERMEDIATE TAX-FREE FUND INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. - -------------------------------------------------------------------------------- BOND QUALITY AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS REPRESENTED BY STANDARD AND POOR'S/MOODY'S RATING AGENCIES AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 58.47% AA+/Aa1 5.63% AA/Aa2 5.9% AA-/Aa3 10.41% A+/A1 5.18% A/A2 1.13% A-/A3 3.57% BBB+/Baa1 5.07% BBB/Baa2 0.63% BBB-/Baa3 2.97% NR/NR 0.82% Net Cash and Equivalents 0.23% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. NR - NOT RATED 54 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Intermediate Municipal Lehman Brothers Lipper Intermediate Bond (Institutional Quality Intermediate Municipal Debt Funds Shares) Municipal Bond Index Average --------------------- -------------------- -------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,023 $ 10,036 $ 10,023 12/97 $ 10,230 $ 10,239 $ 10,241 $ 10,319 $ 10,348 $ 10,343 $ 10,419 $ 10,477 $ 10,471 $ 10,719 $ 10,772 $ 10,754 12/98 $ 10,779 $ 10,855 $ 10,812 $ 10,833 $ 10,950 $ 10,871 $ 10,657 $ 10,794 $ 10,687 $ 10,687 $ 10,885 $ 10,670 12/99 $ 10,670 $ 10,887 $ 10,627 $ 10,884 $ 11,059 $ 10,819 $ 11,030 $ 11,230 $ 10,952 $ 11,241 $ 11,466 $ 11,177 12/00 $ 11,629 $ 11,825 $ 11,556 $ 11,886 $ 12,127 $ 11,805 $ 11,973 $ 12,221 $ 11,883 $ 12,280 $ 12,557 $ 12,189 12/01 $ 12,179 $ 12,478 $ 12,088 $ 12,263 $ 12,587 $ 12,174 $ 12,698 $ 13,073 $ 12,600 $ 13,151 $ 13,596 $ 13,102 12/02 $ 13,183 $ 13,630 $ 13,106 $ 13,307 $ 13,783 $ 13,221 $ 13,540 $ 14,096 $ 13,507 $ 13,568 $ 14,166 $ 13,521 12/03 $ 13,613 $ 14,263 $ 13,642 $ 13,748 $ 14,447 $ 13,798 $ 13,470 $ 14,144 $ 13,511 $ 13,837 $ 14,598 $ 13,914 12/04 $ 13,894 $ 14,696 $ 14,007 $ 13,773 $ 14,567 $ 13,891 $ 14,065 $ 14,905 $ 14,211 $ 14,008 $ 14,866 $ 14,169 12/05 $ 14,062 $ 14,938 $ 14,235 $ 14,041 $ 14,932 $ 14,232 $ 14,054 $ 14,955 $ 14,232 $ 14,480 $ 15,393 $ 14,642 12/06 $ 14,585 $ 15,504 $ 14,738 $ 14,682 $ 15,642 $ 14,834 $ 14,588 $ 15,584 $ 14,746 7/31/07 $ 14,690 $ 15,715 $ 14,841 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index and the Lipper Intermediate Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lipper Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 55 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Ohio Municipal Bond Fund (Institutional Shares) returned 3.32% on a net of fee basis, compared to its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which returned 3.98%. Like much of the country, the downturn in the housing industry negatively affected the Ohio economy during the second half of the period. Although the unemployment rate crept higher during the period, encouraging news came out of Columbus as a rare display of bipartisan support resulted in the approval of a two-year, $52 billion budget. The deal included a $5 billion revenue boost from the securitization of the state's remaining payments from the 1998 tobacco settlement. Against this backdrop, the issuance of new bonds across the state increased about 15% during the first seven months of 2007 - lower than the national average of about 26%. Similar to the broader municipal bond market, the near-term repercussions on Ohio municipal bonds from the subprime mortgage meltdown remained unknown. In general, spreads, or the difference between the yields on municipal bonds and market benchmarks, increased as investors adjusted their risk tolerance, especially during the closing two months of the period. In addition, the intentions of hedge funds, which have grown in importance in the municipal bond market in recent years, were unclear in the wake of some high profile collapses. Within the Fund, a slightly longer duration than the benchmark weighed on returns as the short end of the yield curve rallied in anticipation of a rate cut from the Federal Reserve. Aiding performance was the Fund's focus on quality as higher-rated issues endured the market pressures better than poor quality bonds. Given the setback, however, some compelling values arose among A-rated credits and the Fund added select positions when the yield-quality balance reached attractive levels. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX. SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 3.32% 2.73% 3.69% $14,369 - ---------------------------------------------------------------------- Class A Shares -1.84% 1.51% 2.97% $13,406 - ---------------------------------------------------------------------- Class B Shares -2.72% 1.34% 2.55% $12,861 - ---------------------------------------------------------------------- Class C Shares 2.19% 1.70% 2.73% $13,091 - ---------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index 1 3.98% 3.52% 4.63% $15,715 - ---------------------------------------------------------------------- Lipper Ohio Intermediate Municipal Debt Funds Average 1 2.78% 2.42% 3.48% $13,946 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.93% (INSTITUTIONAL SHARES), 1.18% (CLASS A), AND 1.93% (CLASS B&C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE QUOTED PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS OR REDEMPTION OF SHARES. INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON AUGUST 11, 1998. THE PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES. CLASS B, AND CLASS C SHARES WERE INITIALLY OFFERED ON MAY 27, 1993, OCTOBER 11, 2000, AND APRIL 24, 1996 RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES - -------------------------------------------------------------------------------- BOND QUALITY AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS REPRESENTED BY STANDARD AND POOR'S/MOODY'S RATING AGENCIES AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 33.48% AA+/Aa1 6.43% AA/Aa2 18.07% AA-/Aa3 13.64% A/A2 11.05% A-/A3 2.81% BBB+/Baa1 3.3% BBB/Baa2 2.95% BBB-/Baa3 3.05% NR/NR 4.96% Net Cash and Equivalents 0.25% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. NR - NOT RATED 56 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Lipper Ohio Lehman Brothers Intermediate Ohio Municipal Bond Quality Intermediate Municipal Debt (Institutional Shares) Municipal Bond Index Funds Average ---------------------- -------------------- -------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,015 $ 10,036 $ 10,013 12/97 $ 10,229 $ 10,239 $ 10,214 $ 10,294 $ 10,348 $ 10,296 $ 10,415 $ 10,477 $ 10,416 $ 10,753 $ 10,772 $ 10,695 12/98 $ 10,804 $ 10,855 $ 10,736 $ 10,826 $ 10,950 $ 10,779 $ 10,579 $ 10,794 $ 10,564 $ 10,554 $ 10,885 $ 10,542 12/99 $ 10,486 $ 10,887 $ 10,487 $ 10,709 $ 11,059 $ 10,662 $ 10,827 $ 11,230 $ 10,780 $ 11,041 $ 11,466 $ 10,994 12/00 $ 11,416 $ 11,825 $ 11,346 $ 11,659 $ 12,127 $ 11,564 $ 11,731 $ 12,221 $ 11,617 $ 12,020 $ 12,557 $ 11,891 12/01 $ 11,938 $ 12,478 $ 11,781 $ 11,998 $ 12,587 $ 11,862 $ 12,414 $ 13,073 $ 12,271 $ 12,858 $ 13,596 $ 12,723 12/02 $ 12,874 $ 13,630 $ 12,716 $ 12,989 $ 13,783 $ 12,827 $ 13,235 $ 14,096 $ 13,059 $ 13,273 $ 14,166 $ 13,060 12/03 $ 13,368 $ 14,263 $ 13,142 $ 13,502 $ 14,447 $ 13,260 $ 13,208 $ 14,144 $ 12,981 $ 13,574 $ 14,598 $ 13,321 12/04 $ 13,633 $ 14,696 $ 13,365 $ 13,517 $ 14,567 $ 13,253 $ 13,803 $ 14,905 $ 13,496 $ 13,730 $ 14,866 $ 13,442 12/05 $ 13,781 $ 14,938 $ 13,482 $ 13,784 $ 14,932 $ 13,462 $ 13,768 $ 14,955 $ 13,441 $ 14,171 $ 15,393 $ 13,808 12/06 $ 14,255 $ 15,504 $ 13,880 $ 14,347 $ 15,642 $ 13,950 $ 14,241 $ 15,584 $ 13,854 7/31/07 $ 14,369 $ 15,715 $ 13,946 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index and the Lipper Ohio Intermediate Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lipper Ohio Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Ohio Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 57 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Michigan Municipal Bond Fund (Institutional Shares) gained 3.17% on a net of fee basis, trailing its benchmark, the Lehman Brothers 1-5 Year Municipal Bond Index, which returned 3.78%. With the slump in the housing industry adding to automobile industry woes, Michigan's economy continued to lag the rest of the country during the period. Unemployment crossed the 7.0% threshold by the period's end while the budget continued to be patched with one-time fixes. The 2006 repeal of the single business tax translated into a likely $1.9 billion tax revenue shortfall starting in 2008, but state legislators responded by crafting a new business tax that lightens the tax burden on state-based enterprises while replacing all of the revenue. Conditions prompted downgrades from two ratings agencies during the period and one, Fitch Ratings, followed a cut with a negative watch warning. Against this backdrop, the issuance of new bonds across the state dropped about 14% during the first seven months of 2007 - considerably lower than the national gain of about 26%. Much like the broader municipal bond market, the near-term repercussions on Michigan municipal bonds from the subprime mortgage meltdown remained unknown. In general, spreads, or the difference between the yields on municipal bonds and market benchmarks, increased as investors adjusted their risk tolerance, especially during the closing two months of the period. In addition, the intentions of hedge funds, which have grown in importance in the municipal bond market in recent years, were unclear in the wake of some high profile collapses. Within the Fund, a higher than average cash position weighed on returns as the short end of the yield curve rallied in anticipation of a possible rate cut from the Federal Reserve. Aiding performance was the Fund's focus on quality as higher rated issues endured the market pressures better than poor quality bonds. Given the setback, however, some compelling values arose among lower-rated credits and the Fund added select positions when the yield-quality balance reached attractive levels. - -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX. SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 ------ ------ ------- ------- Institutional 3.17% 2.02% 3.32% $13,866 - ---------------------------------------------------------------------- Class A Shares -1.82% 0.89% 2.67% $13,019 - ---------------------------------------------------------------------- Class B Shares -2.94% 0.64% 2.29% $12,539 - ---------------------------------------------------------------------- Class C Shares 2.16% 1.02% 2.30% $12,552 - ---------------------------------------------------------------------- Lehman Brothers 1-5 Year Municipal Bond Index 1 3.78% 2.70% 3.98% $14,778 - ---------------------------------------------------------------------- Lipper Other States Short-Intermediate Municipal Debt Funds Average 1 2.87% 2.46% 3.51% $13,878 - ---------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.FIFTHTHIRDFUNDS.COM. DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/07, THE GROSS EXPENSE RATIOS ARE 0.98% (INSTITUTIONAL SHARES), 1.22% (CLASS A), AND 1.98 (CLASSES B & C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM SALES CHARGE OF 4.75%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE FIRST YEAR, RESPECTIVELY. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MAY 3, 1993. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT MICHIGAN MUNICIPAL BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MAY 11, 1993, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 200. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. - -------------------------------------------------------------------------------- BOND QUALITY AS OF JULY 31, 2007 - -------------------------------------------------------------------------------- AS REPRESENTED BY STANDARD AND POOR'S/MOODY'S RATING AGENCIES AS A PERCENTAGE OF VALUE OF INVESTMENTS + - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 60.3% AA+/Aa1 5.19% AA/Aa2 4.36% AA-/Aa3 7.34% A+/A1 13.75% A/A2 2.54% A-/A3 1.63% BBB+/Baa1 1.87% BBB/Baa2 0.51% BBB-/Baa3 1.07% NR/NR 0.66% Net Cash and Equivalents 0.8% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. NR - NOT RATED 58 MANAGEMENT DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT [LINE GRAPH] Lehman Brothers 1-5 Lipper Other States Michigan Municipal Bond Year Municipal Bond Short-Intermediate Municpal (Institutional Shares) Index Debt Funds Average ----------------------- ------------------- --------------------------- 7/31/97 $ 10,000 $ 10,000 $ 10,000 $ 10,030 $ 10,047 $ 10,043 12/97 $ 10,184 $ 10,197 $ 10,198 $ 10,276 $ 10,311 $ 10,294 $ 10,370 $ 10,425 $ 10,398 $ 10,586 $ 10,651 $ 10,604 12/98 $ 10,668 $ 10,749 $ 10,682 $ 10,754 $ 10,865 $ 10,747 $ 10,660 $ 10,800 $ 10,662 $ 10,725 $ 10,904 $ 10,685 12/99 $ 10,739 $ 10,933 $ 10,695 $ 10,852 $ 11,054 $ 10,824 $ 10,979 $ 11,210 $ 10,916 $ 11,162 $ 11,397 $ 11,101 12/00 $ 11,416 $ 11,649 $ 11,354 $ 11,684 $ 11,947 $ 11,569 $ 11,789 $ 12,085 $ 11,664 $ 12,043 $ 12,363 $ 11,875 12/01 $ 12,042 $ 12,375 $ 11,886 $ 12,103 $ 12,441 $ 11,958 $ 12,450 $ 12,831 $ 12,238 $ 12,708 $ 13,143 $ 12,562 12/02 $ 12,789 $ 13,252 $ 12,600 $ 12,900 $ 13,366 $ 12,682 $ 13,029 $ 13,520 $ 12,830 $ 13,119 $ 13,649 $ 12,908 12/03 $ 13,092 $ 13,651 $ 12,972 $ 13,169 $ 13,788 $ 13,085 $ 12,986 $ 13,595 $ 12,867 $ 13,203 $ 13,875 $ 13,132 12/04 $ 13,232 $ 13,933 $ 13,189 $ 13,139 $ 13,825 $ 13,132 $ 13,297 $ 14,020 $ 13,319 $ 13,294 $ 14,031 $ 13,323 12/05 $ 13,339 $ 14,075 $ 13,360 $ 13,336 $ 14,094 $ 13,378 $ 13,367 $ 14,137 $ 13,399 $ 13,616 $ 14,431 $ 13,662 12/06 $ 13,693 $ 14,525 $ 13,742 $ 13,794 $ 14,662 $ 13,829 $ 13,805 $ 14,676 $ 13,825 7/31/07 $ 13,866 $ 14,778 $ 13,878 PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM. The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers 1-5 Year Municipal Bond Index and the Lipper Other States Short-Intermediate Municipal Debt Funds Average. The Lehman Brothers 1-5 Year Municipal Bond Index is representative of short term municipal bonds with a maturity between one and six years. The Lipper Other States Short-Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers 1-5 Year Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Other States Short-Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2007. 59 This page intentionally left blank. 60 SMALL CAP GROWTH SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (96.9%) Aegean Marine Petroleum, Inc. 116,201 $ 2,434 Aeropostale, Inc. * 37,900 1,443 American Reprographics Co. * 87,000 2,168 AMN Healthcare Services, Inc. * 81,770 1,756 Anadigics, Inc. * 110,032 1,599 Anaren, Inc. * 75,800 1,307 Arthrocare Corp. * 35,600 1,802 AZZ, Inc. * 32,067 1,138 Belden, Inc. 25,000 1,370 BioMarin Pharmaceuticals, Inc. * 108,100 1,952 Bucyrus International, Inc., Class A 42,000 2,670 Carrizo Oil & Gas, Inc. * 41,100 1,503 Childrens Place Retail Stores, Inc. (The) * 39,700 1,354 Coldwater Creek, Inc. * 89,700 1,766 Complete Production Services, Inc. * 78,000 1,809 Core Laboratories NV * 19,400 2,088 Dayton Superior Corp. * 167,600 1,669 Diodes, Inc. * 73,110 1,943 DXP Enterprises, Inc. * 46,834 1,519 Eagle Test Systems, Inc. * 104,100 1,560 East West Bancorp, Inc. 42,500 1,558 Energy Conversion Devices, Inc. * 62,400 1,863 Equinix, Inc. * 19,600 1,703 First Cash Financial Services, Inc. * 97,000 2,114 General Cable Corp. * 15,000 1,192 G-III Apparel Group, Ltd. * 82,300 1,327 HealthExtras, Inc. * 67,100 1,800 Hibbett Sports, Inc. * 62,100 1,592 Hologic, Inc. * 44,025 2,280 Houston Wire & Cable Co. * 74,100 1,910 HUB Group, Inc., Class A * 72,900 2,480 Huron Consulting Group, Inc. * 36,100 2,452 Icon PLC ADR * 36,000 1,684 Iconix Brand Group, Inc. * 105,200 2,081 inVentiv Health, Inc. * 46,800 1,660 Kenexa Corp. * 52,000 1,861 LKQ Corp. * 92,400 2,627 Mobile Mini, Inc. * 62,900 1,797 Morton's Restaurant Group, Inc. * 97,400 1,760 MWI Veterinary Supply, Inc. * 42,000 1,624 Netlogic Microsystems, Inc. * 52,700 1,606 NewStar Financial, Inc. * 113,800 1,396 Nice Systems, Ltd. ADR * 64,900 2,156 Nuance Communications, Inc. * 133,100 2,193 NuVasive, Inc. * 84,900 2,435 OpNext, Inc. * 103,000 1,258 Parametric Technology Corp. * 109,900 1,938 Perficient, Inc. * 89,100 1,762 Phase Forward, Inc. * 57,700 992 Physicians Formula Holdings, Inc. * 79,742 1,192 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Polypore International, Inc. * 104,169 $ 1,917 PROS Holdings, Inc. * 105,052 1,313 Providence Service Corp. (The) * 59,300 1,558 Psychiatric Solutions, Inc. * 65,600 2,236 Quality Systems, Inc. 30,850 1,195 Respironics, Inc. * 46,800 2,141 Rrsat Global Communications * 76,485 1,766 Skechers U.S.A., Inc., Class A * 64,300 1,337 Spreadtrum Communications, Inc. ADR * 48,983 696 Stage Stores, Inc. 96,800 1,727 Superior Energy Services * 46,500 1,875 Symmetricom, Inc. * 199,000 1,485 T-3 Energy Services, Inc. * 57,103 1,981 Texas Industries, Inc. 29,100 2,293 Thomas Weisel Partners Group, Inc. * 65,900 916 Trident Microsystems, Inc. * 72,700 1,106 Ultrapetrol Bahamas, Ltd. * 119,900 2,818 United Natural Foods, Inc. * 41,100 1,119 Varian, Inc. * 29,516 1,775 Varian Semiconductor Equipmen Associates, Inc. * 53,900 2,533 Vasco Data Security International, Inc. * 87,100 2,306 Zenith National Insurance Corp. 36,400 1,469 ------------ TOTAL COMMON STOCKS 126,705 ------------ REAL ESTATE INVESTMENT TRUSTS (1.4%) Digital Realty Trust, Inc. 54,000 1,790 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS 1,790 ------------ INVESTMENTS IN AFFILIATES (a) (3.7%) Fifth Third Institutional Money Market Fund 4,856,397 4,856 ------------ TOTAL INVESTMENTS IN AFFILIATES 4,856 ------------ TOTAL INVESTMENTS (COST $106,559) - 102.0% 133,351 LIABILITIES IN EXCESS OF OTHER ASSETS - (2.0)% (2,558) ------------ NET ASSETS - 100.0% $ 130,793 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. The following abbreviation is used in the Schedule of Portfolio Investments: ADR - American Depositary Receipt SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 61 MID CAP GROWTH SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (95.8%) Abercrombie & Fitch Co., Class A 83,700 $ 5,851 Activision, Inc. * 201,000 3,439 Affiliated Managers Group, Inc. * 51,100 5,774 Akamai Technologies, Inc. * 48,000 1,630 Allegheny Technologies, Inc. 50,000 5,246 Allergan, Inc. 66,500 3,866 Alliance Data Systems Corp. * 30,000 2,304 Amdocs, Ltd. * 146,500 5,302 Broadcom Corp., Class A * 148,000 4,856 Cadence Design Systems, Inc. * 280,700 6,007 Carter's, Inc. * 188,900 3,999 CH Robinson Worldwide, Inc. 90,200 4,388 Childrens Place Retail Stores, Inc. (The) * 87,525 2,985 Coach, Inc. * 93,350 4,244 Cognizant Technology Solutions Corp., Class A * 49,500 4,008 Coldwater Creek, Inc. * 242,600 4,777 Complete Production Services, Inc. * 142,500 3,304 Covance, Inc. * 72,300 5,102 Coventry Health Care, Inc. * 73,100 4,080 Cytyc Corp. * 130,500 5,494 DaVita, Inc. * 123,900 6,559 E*Trade Financial Corp. * 194,800 3,608 Electronic Arts, Inc. * 111,100 5,404 Express Scripts, Inc. * 130,200 6,527 Gardner Denver, Inc. * 71,000 2,953 Gen-Probe, Inc. * 93,100 5,866 GlobalSantaFe Corp. 87,500 6,275 Guess ?, Inc. 172,600 8,197 Herbalife, Ltd. 123,500 5,061 IDEX Corp. 137,000 4,961 International Game Technology 132,000 4,662 Intersil Corp., Class A 178,000 5,206 Intuit, Inc. * 117,000 3,351 ITT Corp. 79,900 5,024 JC Penney Co., Inc. 62,400 4,246 Jones Lang LaSalle, Inc. 50,200 5,511 Joy Global, Inc. 117,450 5,813 Logitech International SA * 137,000 3,658 Manpower, Inc. 40,000 3,162 Marriott International, Inc., Class A 136,900 5,688 Martin Marietta Materials, Inc. 46,800 6,412 Maxim Integrated Products, Inc. 171,000 5,421 Micros Systems, Inc. * 64,700 3,447 Nabors Industries, Ltd. * 110,000 3,216 National Oilwell Varco, Inc. * 60,000 7,207 National Semiconductor Corp. 237,500 6,173 Network Appliance, Inc. * 117,700 3,336 NII Holdings, Inc. * 111,600 9,377 Nvidia Corp. * 48,400 2,215 Pharmaceutical Product Development, Inc. 130,900 4,385 Polo Ralph Lauren Corp. 56,100 5,012 Precision Castparts Corp. 74,200 10,170 ProAssurance Corp. * 96,100 4,745 Psychiatric Solutions, Inc. * 191,100 6,515 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Respironics, Inc. * 133,450 $ 6,105 Scientific Games Corp. * 142,900 4,903 Spirit Aerosystems Holdings, Inc., Class A * 133,000 4,828 Starwood Hotels & Resorts Worldwide, Inc. 64,700 4,073 Stericycle, Inc. * 126,000 6,040 Superior Energy Services * 130,000 5,242 T Rowe Price Group, Inc. 131,800 6,871 Time Warner Telecom, Inc., Class A * 216,993 4,242 Tractor Supply Co. * 80,900 3,844 Ultra Petroleum Corp. * 90,300 4,993 Urban Outfitters, Inc. * 137,300 2,754 VCA Antech, Inc. * 116,600 4,587 WESCO International, Inc. * 97,000 5,194 XTO Energy, Inc. 93,300 5,088 ------------ TOTAL COMMON STOCKS 334,783 ------------ REAL ESTATE INVESTMENT TRUSTS (1.1%) CapitalSource, Inc. 210,900 4,007 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS 4,007 ------------ INVESTMENTS IN AFFILIATES (a) (1.6%) Fifth Third Institutional Money Market Fund 5,510,118 5,510 ------------ TOTAL INVESTMENTS IN AFFILIATES 5,510 ------------ TOTAL INVESTMENTS (COST $266,630) - 98.5% 344,300 OTHER ASSETS IN EXCESS OF LIABILITIES - 1.5% 5,203 ------------ NET ASSETS - 100.0% $ 349,503 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 62 QUALITY GROWTH SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (99.2%) Abbott Laboratories 220,000 $ 11,152 Accenture Ltd., Class A 220,000 9,269 Alberto-Culver Co. 331,000 7,785 Apple, Inc. * 90,000 11,858 AT&T, Inc. 290,000 11,356 Baxter International, Inc. 275,000 14,465 Boeing Co. 115,100 11,905 Burger King Holdings, Inc. 277,850 6,749 Caterpillar, Inc. 100,000 7,880 Celgene Corp. * 135,000 8,176 Chevron Corp. 142,500 12,150 Chipotle Mexican Grill, Inc., Class A * 88,000 7,774 Cisco Systems, Inc. * 475,000 13,732 Coach, Inc. * 200,000 9,092 Colgate-Palmolive Co. 150,000 9,900 Comcast Corp., Class A * 400,000 10,508 Danaher Corp. 130,000 9,708 Dell, Inc. * 375,000 10,489 Devon Energy Corp. 120,000 8,953 Discover Financial Services * 65,000 1,498 eBay, Inc. * 217,725 7,054 EMC Corp. * 550,000 10,180 Emerson Electric Co. 230,000 10,826 Fluor Corp. 60,000 6,931 Franklin Resources, Inc. 96,075 12,237 Gilead Sciences, Inc. * 310,000 11,541 Google, Inc., Class A * 23,000 11,730 Hewlett-Packard Co. 200,000 9,206 Honeywell International, Inc. 150,000 8,627 Illinois Tool Works, Inc. 185,000 10,184 Intel Corp. 625,000 14,763 International Business Machines Corp. 135,000 14,938 ITT Corp. 175,000 11,004 Johnson & Johnson 170,275 10,302 Johnson Controls, Inc. 100,000 11,315 Kellogg Co. 215,000 11,139 Kroger Co. (The) 340,000 8,826 Lincoln National Corp. 100,000 6,032 Manpower, Inc. 105,000 8,300 McDonald's Corp. 260,000 12,446 Merck & Co., Inc. 220,000 10,923 Microsoft Corp. 800,000 23,192 Monsanto Co. 180,000 11,601 Morgan Stanley 130,000 8,303 Northern Trust Corp. 150,000 9,369 Oracle Corp. * 600,000 11,472 PepsiCo, Inc. 195,000 12,796 Pilgrim's Pride Corp. 220,000 7,410 Praxair, Inc. 160,000 12,259 Procter & Gamble Co. 130,000 8,042 QUALCOMM, Inc. 230,000 9,580 Roper Industries, Inc. 140,000 8,397 Schlumberger Ltd. 140,000 13,261 Stericycle, Inc. * 220,000 10,547 T Rowe Price Group, Inc. 165,000 8,601 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Texas Instruments, Inc. 270,000 $ 9,501 Thermo Fisher Scientific, Inc. * 215,000 11,225 Transocean, Inc. * 100,000 10,745 United Technologies Corp. 160,000 11,675 Varian Semiconductor Equipment Associates, Inc. * 170,000 7,990 Waters Corp. * 145,000 8,448 Zimmer Holdings, Inc. * 140,000 10,886 ------------ TOTAL COMMON STOCKS 638,203 ------------ INVESTMENTS IN AFFILIATES (a) (1.0%) Fifth Third Institutional Money Market Fund 6,443,679 6,444 ------------ TOTAL INVESTMENTS IN AFFILIATES 6,444 ------------ TOTAL INVESTMENTS (COST $556,399) - 100.2% 644,647 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (989) ------------ NET ASSETS - 100.0% $ 643,658 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 63 STRUCTURED LARGE CAP PLUS SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (124.7%) 3M Co. (c) 1,719 $ 153 Accenture, Ltd., Class A 1,293 54 Aetna, Inc. (c) 72,561 3,488 Alcoa, Inc. (c) 28,897 1,104 Altria Group, Inc. (c) 45,383 3,017 Amazon.Com, Inc. * (c) 13,180 1,035 American Electric Power Co., Inc. (c) 22,262 968 American Express Co. (c) 22,858 1,338 American International Group, Inc. (c) 50,246 3,225 American Standard Cos., Inc. (c) 2,696 146 AmeriCredit Corp. * (c) 22,239 452 Ameriprise Financial, Inc. (c) 3,179 192 AmerisourceBergen Corp. (c) 2,931 138 Apple, Inc. * (c) 13,334 1,757 Applied Materials, Inc. (c) 229,849 5,066 Ashland, Inc. (c) 28,925 1,766 AT&T, Inc. (c) 32,154 1,259 Automatic Data Processing, Inc. (c) 10,129 470 AutoZone, Inc. * (c) 25,263 3,204 Avnet, Inc. * (c) 24,639 933 Ball Corp. (c) 12,179 624 Bank of America Corp. (c) 68,363 3,242 Baxter International, Inc. (c) 5,043 265 Big Lots, Inc. * (c) 19,679 509 Biogen Idec, Inc. * (c) 80,310 4,541 Black & Decker Corp. (c) 1,016 88 BMC Software, Inc. * (c) 3,155 91 Brookfield Asset Management, Inc., Class A (c) 1,019 36 Caterpillar, Inc. (c) 8,872 699 CB Richard Ellis Group, Inc. * (c) 5,197 181 CenturyTel, Inc. (c) 3,607 165 Cephalon, Inc. * (c) 13,839 1,040 Chevron Corp. (c) 15,962 1,361 ChoicePoint, Inc. * (c) 47,474 1,839 CIGNA Corp. (c) 40,583 2,096 Citigroup, Inc. (c) 73,431 3,420 City National Corp. (c) 832 59 CNA Financial Corp. (c) 45,009 1,869 Coach, Inc. * (c) 6,153 280 Comerica, Inc. (c) 28,876 1,521 Computer Sciences Corp. * (c) 42,488 2,366 ConocoPhillips (c) 38,368 3,102 Countrywide Financial Corp. (c) 11,200 315 Coventry Health Care, Inc. * (c) 35,715 1,993 Cummins, Inc. (c) 1,612 191 DaimlerChrysler AG 6,930 629 Darden Restaurants, Inc. (c) 4,802 204 Deere & Co. (c) 3,598 433 Dell, Inc. * (c) 20,827 582 Dollar Tree Stores, Inc. * (c) 44,400 1,699 Dow Chemical Co. (The) (c) 6,178 269 DTE Energy Co. (c) 88,452 4,102 Dun & Bradstreet Corp. (c) 1,475 144 eBay, Inc. * (c) 143,174 4,639 Edison International (c) 5,019 265 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED E.I. du Pont de Nemours & Co. (c) 2,931 $ 137 Emerson Electric Co. (c) 18,588 875 Expedia, Inc. * (c) 3,101 83 Exxon Mobil Corp. (c) 88,133 7,503 Family Dollar Stores, Inc. (c) 25,173 746 Fidelity National Information Services, Inc. (c) 522 26 FirstEnergy Corp. (c) 48,006 2,916 Forest Laboratories, Inc. * (c) 76,983 3,095 General Electric Co. (a) (c) 71,193 2,759 General Mills, Inc. (c) 62,488 3,476 Gilead Sciences, Inc. * (c) 13,805 514 Goldman Sachs Group, Inc. (The) (c) 17,730 3,339 Goodyear Tire & Rubber Co. (The) * (c) 8,558 246 Google, Inc., Class A * (c) 2,827 1,442 Halliburton Co. 132,409 4,769 HJ Heinz Co. (c) 5,457 239 Home Depot, Inc. (c) 1,209 45 Honeywell International, Inc. (c) 16,515 950 Humana, Inc. * 2,586 166 Intel Corp. 21,751 514 International Business Machines Corp. 59,139 6,544 ITT Corp. (c) 42,402 2,666 Johnson Controls, Inc. (c) 15,078 1,706 JPMorgan Chase & Co. 104,893 4,616 Juniper Networks, Inc. * 86,859 2,602 KB Home (c) 21,598 687 Kellogg Co. (c) 57,292 2,968 Kimberly-Clark Corp. 48,363 3,253 King Pharmaceuticals, Inc. * 66,283 1,127 Kroger Co. (The) 27,876 724 L-3 Communications Holdings, Inc. (c) 18,016 1,758 Lehman Brothers Holdings, Inc. 6,052 375 Loews Corp. (c) 45,826 2,172 Loews Corp. - Carolina Group 5,366 407 Marathon Oil Corp. 61,538 3,397 Masco Corp. (c) 25,790 702 McDonald's Corp. 84,152 4,028 McGraw-Hill Cos., Inc. (The) 17,614 1,066 MEMC Electronic Materials, Inc. * (c) 1,440 88 Merck & Co., Inc. 33,376 1,657 Merrill Lynch & Co., Inc. 13,414 995 MetLife, Inc. 29,573 1,781 Microsoft Corp. (a) 237,928 6,897 Mohawk Industries, Inc. * (c) 25,897 2,331 Molson Coors Brewing Co., Class B 9,873 878 Morgan Stanley 51,475 3,288 National Oilwell Varco, Inc. * (c) 9,626 1,156 National Semiconductor Corp. (c) 6,018 156 NCR Corp. * (c) 2,765 144 Nike, Inc., Class B 10,788 609 NiSource, Inc. 33,104 631 Norfolk Southern Corp. 37,896 2,038 Northrop Grumman Corp. 48,861 3,718 Novell, Inc. * 98,551 661 Novellus Systems, Inc. * 7,873 224 NRG Energy, Inc. * 53,160 2,049 CONTINUED 64 STRUCTURED LARGE CAP PLUS SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Nucor Corp. 4,649 $ 233 NVR, Inc. * (c) 3,474 2,010 Oneok, Inc. 22,809 1,158 Patterson-UTI Energy, Inc. 146,879 3,363 Pepsi Bottling Group, Inc. (c) 51,612 1,727 PepsiCo, Inc. (c) 31,822 2,088 PerkinElmer, Inc. 95,570 2,660 Pfizer, Inc. (c) 237,548 5,585 Polo Ralph Lauren Corp. (c) 16,816 1,503 Procter & Gamble Co. (c) 29,773 1,842 Raytheon Co. (c) 64,278 3,558 RH Donnelley Corp. * (c) 12,367 773 Rockwell Automation, Inc. (c) 14,233 996 Safeway, Inc. (c) 2,552 81 Schering-Plough Corp. (c) 63,357 1,808 Sealed Air Corp. (c) 1,885 51 Sempra Energy (c) 21,578 1,138 Sherwin-Williams Co. (The) (c) 4,157 290 Sprint Nextel Corp. (c) 131,373 2,697 Starwood Hotels & Resorts Worldwide, Inc. (c) 3,459 218 SunTrust Banks, Inc. (c) 31,224 2,445 Synovus Financial Corp. (c) 49,020 1,371 Temple-Inland, Inc. (c) 7,393 430 Teradyne, Inc. * (c) 48,037 754 Tesoro Corp. (c) 11,075 552 Texas Instruments, Inc. (c) 130,668 4,598 Travelers Cos., Inc. (The) (c) 56,943 2,892 Tyco International Ltd. (c) 72,579 3,432 Union Pacific Corp. (c) 4,494 535 United Parcel Service, Inc., Class B (c) 8,423 638 United Technologies Corp. (c) 9,282 677 UnitedHealth Group, Inc. (c) 26,014 1,260 Valero Energy Corp. (c) 49,337 3,306 Verizon Communications, Inc. (c) 106,007 4,518 Wachovia Corp. (c) 12,988 613 Wal-Mart Stores, Inc. (c) 12,797 588 Walt Disney Co. (The) (c) 128,210 4,231 Washington Mutual, Inc. (c) 16,434 617 Watson Pharmaceuticals, Inc. * (c) 73,632 2,240 Wells Fargo & Co. (c) 13,431 454 Yahoo!, Inc. * (c) 77,355 1,799 ------------ TOTAL COMMON STOCKS 250,292 ------------ INVESTMENTS IN AFFILIATES (b) (2.6%) Fifth Third Institutional Money Market Fund 5,169,547 5,170 ------------ TOTAL INVESTMENTS IN AFFILIATES 5,170 ------------ TOTAL INVESTMENTS (COST $241,689) - 127.3% 255,462 SECURITIES SOLD SHORT (PROCEEDS $59,216) - (28.2)% (56,471) OTHER ASSETS IN EXCESS OF LIABILITIES - 0.9% 1,742 ------------ NET ASSETS - 100.0% $ 200,733 ============ CONTINUED SHARES VALUE ------------ ------------ SECURITIES SOLD SHORT (28.2)% COMMON STOCKS (27.0)% Abraxis BioScience, Inc. * (31,618) $ (633) Activision, Inc. * (24,823) (425) Advanced Micro Devices, Inc. * (68,869) (932) Agnico-Eagle Mines, Ltd. (12,432) (529) Akamai Technologies, Inc. * (6,957) (236) Allergan, Inc. (14,272) (830) Alliant Techsystems, Inc. * (32,921) (3,263) Amylin Pharmaceuticals, Inc. * (63,805) (2,967) Archer-Daniels-Midland Co. (59,850) (2,011) Barr Pharmaceuticals, Inc. * (63,521) (3,253) Brown & Brown, Inc. (86,420) (2,221) Cameco Corp. (72,824) (2,970) Carmax, Inc. * (28,166) (674) Circuit City Stores, Inc. (91,168) (1,085) Citizens Communications Co. (37,184) (537) CMS Energy Corp. (113,194) (1,829) Cognizant Technology Solutions Corp., Class A * (32,149) (2,603) Cullen/Frost Bankers, Inc. (5,444) (270) Dynegy, Inc., Class A * (48,292) (430) Electronic Arts, Inc. * (33,931) (1,650) Estee Lauder Cos., Inc. (The), Class A (7,375) (332) Integrys Energy Group, Inc. (71,726) (3,550) Intuit, Inc. * (1,905) (54) Jabil Circuit, Inc. (67,331) (1,517) Las Vegas Sands Corp. * (16,263) (1,419) Leap Wireless International, Inc. * (520) (46) Ltd Brands, Inc. (14,989) (362) MasterCard, Inc. (1,238) (199) Micron Technology, Inc. * (103,760) (1,232) Millipore Corp. * (19,961) (1,569) Mylan Laboratories, Inc. (22,505) (361) NII Holdings, Inc. * (29,538) (2,482) Nortel Networks Corp. * (3,405) (74) Quicksilver Resources, Inc. * (89,639) (3,776) Resmed, Inc. * (42,387) (1,822) Seagate Technology (46,378) (1,090) Starbucks Corp. * (115,361) (3,078) USG Corp. * (45,328) (1,882) Varian Medical Systems, Inc. * (1,673) (68) ------------ TOTAL COMMON STOCKS (54,261) ------------ REAL ESTATE INVESTMENT TRUSTS (1.1)% AvalonBay Communities, Inc. (1,798) (194) Mack-Cali Realty Corp. (18,884) (729) Public Storage (7,520) (527) Regency Centers Corp. (3,473) (225) UDR, Inc. (23,163) (535) ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS $ (2,210) ------------ TOTAL SECURITIES SOLD SHORT (PROCEEDS $59,216) - (28.2)% $ (56,471) ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) All or part of this security has been deposited as initial margin on open futures contracts. (b) Investment is in Institutional Shares of underlying fund. (c) All or part of this security has been designated as collateral for short sales. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 65 EQUITY INDEX SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (96.3%) 3M Co. 22,961 $ 2,042 Abbott Laboratories 49,109 2,489 Abercrombie & Fitch Co., Class A 2,813 197 ACE, Ltd. 10,379 599 Adobe Systems, Inc. * 18,746 755 Advanced Micro Devices, Inc. * 17,549 238 AES Corp. (The) * 21,283 418 Aetna, Inc. 16,464 791 Affiliated Computer Services, Inc., Class A * 3,162 170 Aflac, Inc. 15,594 813 Agilent Technologies, Inc. * 12,624 482 Air Products & Chemicals, Inc. 6,906 596 Akamai Technologies, Inc. * 5,258 179 Alcoa, Inc. 27,722 1,059 Allegheny Energy, Inc. * 5,283 276 Allegheny Technologies, Inc. 3,257 342 Allergan, Inc. 9,804 570 Allied Waste Industries, Inc. * 8,139 105 Allstate Corp. (The) 19,365 1,029 Alltel Corp. 11,014 726 Altera Corp. 11,320 263 Altria Group, Inc. 67,054 4,457 Amazon.Com, Inc. * 9,915 779 AMBAC Financial Group, Inc. 3,250 218 Ameren Corp. 6,576 316 American Capital Strategies, Ltd. 5,616 213 American Electric Power Co., Inc. 12,713 553 American Express Co. 37,895 2,218 American International Group, Inc. 82,708 5,308 American Standard Cos., Inc. 5,607 303 Ameriprise Financial, Inc. 7,500 452 AmerisourceBergen Corp. 6,092 287 Amgen, Inc. * 36,971 1,987 Anadarko Petroleum Corp. 14,791 744 Analog Devices, Inc. 10,428 370 Anheuser-Busch Cos., Inc. 24,223 1,181 AON Corp. 9,361 375 Apache Corp. 10,558 854 Apollo Group, Inc., Class A * 4,462 264 Apple, Inc. * 27,576 3,633 Applera Corp. - Applied Biosystems Group 5,852 183 Applied Materials, Inc. 44,059 971 Archer-Daniels-Midland Co. 20,810 699 Ashland, Inc. 1,781 109 Assurant, Inc. 3,164 160 AT&T, Inc. (b) 196,566 7,698 Autodesk, Inc. * 7,371 312 Automatic Data Processing, Inc. 17,638 819 AutoNation, Inc. * 4,817 94 AutoZone, Inc. * 1,523 193 Avaya, Inc. * 14,342 237 Avery Dennison Corp. 2,921 179 Avon Products, Inc. 13,991 504 Baker Hughes, Inc. 10,213 807 Ball Corp. 3,255 167 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Bank of America Corp. (b) 141,482 $ 6,709 Bank of New York Mellon Corp. (The) 36,009 1,532 Barr Pharmaceuticals, Inc. * 3,499 179 Bausch & Lomb, Inc. 1,732 111 Baxter International, Inc. 20,771 1,093 BB&T Corp. 17,298 647 Bear Stearns Cos., Inc. (The) 3,795 460 Becton Dickinson & Co. 7,810 596 Bed Bath & Beyond, Inc. * 8,732 302 Bemis Co., Inc. 3,335 98 Best Buy Co., Inc. 12,906 575 Big Lots, Inc. * 3,491 90 Biogen Idec, Inc. * 9,110 515 BJ Services Co. 9,352 245 Black & Decker Corp. 2,103 182 BMC Software, Inc. * 6,503 187 Boeing Co. 25,103 2,596 Boston Scientific Corp. * 37,829 497 Bristol-Myers Squibb Co. 62,745 1,783 Broadcom Corp., Class A * 14,833 487 Brown-Forman Corp., Class B 2,512 167 Brunswick Corp. 2,881 81 Burlington Northern Santa Fe Corp. 11,353 933 CA, Inc. 13,114 329 Campbell Soup Co. 6,917 255 Capital One Financial Corp. 13,174 932 Cardinal Health, Inc. 12,263 806 Carnival Corp. 14,105 625 Caterpillar, Inc. 20,417 1,609 CB Richard Ellis Group, Inc., Class A * 5,978 209 CBS Corp., Class B 23,355 741 Celgene Corp. * 12,112 734 Centerpoint Energy, Inc. 10,227 169 Centex Corp. 3,808 142 CenturyTel, Inc. 3,492 160 CH Robinson Worldwide, Inc. 5,457 266 Charles Schwab Corp. (The) 32,259 649 Chesapeake Energy Corp. 13,054 444 Chevron Corp. 68,521 5,842 Chubb Corp. 12,800 645 Ciena Corp. * 2,722 99 CIGNA Corp. 9,175 474 Cincinnati Financial Corp. 5,473 215 Cintas Corp. 4,299 157 Circuit City Stores, Inc. 4,409 52 Cisco Systems, Inc. * 193,560 5,596 CIT Group, Inc. 6,114 252 Citigroup, Inc. (b) 157,699 7,344 Citizens Communications Co. 10,917 158 Citrix Systems, Inc. * 5,757 208 Clear Channel Communications, Inc. 15,825 584 Clorox Co. 4,838 293 CME Group, Inc. 1,764 975 CMS Energy Corp. 7,157 116 Coach, Inc. * 11,832 538 Coca-Cola Co. (The) 64,068 3,339 Coca-Cola Enterprises, Inc. 8,893 202 CONTINUED 66 EQUITY INDEX SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Cognizant Technology Solutions Corp., Class A * 4,583 $ 371 Colgate-Palmolive Co. 16,307 1,076 Comcast Corp., Class A * 99,216 2,606 Comerica, Inc. 4,972 262 Commerce Bancorp, Inc. 6,101 204 Compass Bancshares, Inc. 4,199 291 Computer Sciences Corp. * 5,522 307 Compuware Corp. * 9,601 90 ConAgra Foods, Inc. 15,880 403 ConocoPhillips 52,107 4,212 Consol Energy, Inc. 5,805 242 Consolidated Edison, Inc. 8,624 377 Constellation Brands, Inc., Class A * 6,159 135 Constellation Energy Group, Inc. 5,760 483 Convergys Corp. * 4,365 83 Cooper Industries, Ltd., Class A 5,836 309 Corning, Inc. * 50,143 1,195 Costco Wholesale Corp. 14,240 852 Countrywide Financial Corp. 18,918 533 Coventry Health Care, Inc. * 4,984 278 Covidien, Ltd. * 15,800 647 CR Bard, Inc. 3,292 258 CSX Corp. 13,937 661 Cummins, Inc. 3,324 395 CVS Caremark Corp. 49,208 1,732 Danaher Corp. 7,590 567 Darden Restaurants, Inc. 4,507 192 Dean Foods Co. 4,144 119 Deere & Co. 7,173 864 Dell, Inc. * 72,422 2,026 Devon Energy Corp. 14,181 1,058 Dillard's, Inc., Class A 1,942 58 DIRECTV Group, Inc. (The) * 24,580 551 Discover Financial Services * 16,800 387 Dominion Resources, Inc. 11,169 941 Dover Corp. 6,517 332 Dow Chemical Co. (The) 30,391 1,321 Dow Jones & Co., Inc. 2,084 120 DR Horton, Inc. 8,712 142 DTE Energy Co. 5,613 260 Duke Energy Corp. 40,153 684 Dynegy, Inc., Class A * 12,826 114 E*TRADE Financial Corp. * 13,609 252 Eastman Chemical Co. 2,682 185 Eastman Kodak Co. 9,172 232 Eaton Corp. 4,671 454 eBay, Inc. * 36,089 1,169 Ecolab, Inc. 5,588 235 Edison International 10,387 549 EI Du Pont de Nemours & Co. 29,448 1,376 El Paso Corp. 22,325 372 Electronic Arts, Inc. * 9,885 481 Electronic Data Systems Corp. 16,223 438 Eli Lilly & Co. 31,455 1,701 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Embarq Corp. 4,816 $ 298 EMC Corp. * 66,902 1,238 Emerson Electric Co. 25,354 1,193 ENSCO International, Inc. 4,753 290 Entergy Corp. 6,289 629 EOG Resources, Inc. 7,798 547 Equifax, Inc. 4,638 188 Estee Lauder Cos., Inc. (The), Class A 3,761 169 EW Scripps Co., Class A 2,658 109 Exelon Corp. 21,445 1,504 Express Scripts, Inc. * 8,685 435 Exxon Mobil Corp. (b) 179,596 15,289 Family Dollar Stores, Inc. 4,808 142 Fannie Mae 31,022 1,856 Federated Investors, Inc., Class B 2,824 102 FedEx Corp. 9,813 1,087 Fidelity National Information Services, Inc. 5,216 259 First Data Corp. 24,052 765 FirstEnergy Corp. 9,719 590 First Horizon National Corp. 4,009 127 Fiserv, Inc. * 5,362 265 Fluor Corp. 2,811 325 Ford Motor Co. * 59,941 510 Forest Laboratories, Inc. * 10,134 407 Fortune Brands, Inc. 4,870 396 FPL Group, Inc. 12,957 748 Franklin Resources, Inc. 5,253 669 Freddie Mac 21,091 1,208 Freeport-McMoRan Copper & Gold, Inc. 11,969 1,125 Gannett Co., Inc. 7,482 373 Gap, Inc. (The) 16,903 291 General Dynamics Corp. 12,906 1,014 General Electric Co. (b) 328,000 12,713 General Mills, Inc. 11,043 614 General Motors Corp. 18,037 584 Genuine Parts Co. 5,432 258 Genworth Financial, Inc., Class A 13,337 407 Genzyme Corp. * 8,380 529 Gilead Sciences, Inc. * 29,772 1,108 Goldman Sachs Group, Inc. (The) 13,023 2,453 Goodrich Corp. 3,990 251 Goodyear Tire & Rubber Co. (The) * 6,577 189 Google, Inc., Class A * 6,953 3,546 H&R Block, Inc. 10,295 205 Halliburton Co. 29,141 1,050 Harley-Davidson, Inc. 8,211 471 Harman International Industries, Inc. 2,077 241 Harrah's Entertainment, Inc. 5,952 504 Hartford Financial Services Group, Inc. 10,096 928 Hasbro, Inc. 5,081 142 Hercules, Inc. * 3,717 77 Hershey Co. (The) 5,465 252 Hess Corp. 8,699 532 Hewlett-Packard Co. 83,494 3,843 CONTINUED 67 EQUITY INDEX SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Hilton Hotels Corp. 12,426 $ 549 HJ Heinz Co. 10,357 453 Home Depot, Inc. 62,938 2,339 Honeywell International, Inc. 24,858 1,430 Hospira, Inc. * 4,967 192 Hudson City Bancorp, Inc. 15,447 189 Humana, Inc. * 5,357 343 Huntington Bancshares, Inc. 11,649 224 IAC/InterActiveCorp * 6,966 200 Illinois Tool Works, Inc. 13,134 723 IMS Health, Inc. 6,256 176 Ingersoll-Rand Co., Ltd., Class A 9,616 484 Integrys Energy Group, Inc. 2,413 119 Intel Corp. 185,231 4,375 International Business Machines Corp. 43,551 4,819 International Flavors & Fragrances, Inc. 2,476 124 International Game Technology 10,599 374 International Paper Co. 13,887 515 Interpublic Group of Cos., Inc * 14,949 157 Intuit, Inc. * 10,921 313 ITT Corp. 5,794 364 Jabil Circuit, Inc. 5,714 129 Janus Capital Group, Inc. 5,911 178 JC Penney Co., Inc. 7,173 488 JDS Uniphase Corp. * 6,733 97 Johnson & Johnson 92,346 5,587 Johnson Controls, Inc. 6,290 712 Jones Apparel Group, Inc. 3,472 87 JPMorgan Chase & Co. 108,910 4,793 Juniper Networks, Inc. * 18,054 541 KB Home 2,449 78 Kellogg Co. 7,986 414 KeyCorp 12,507 434 KeySpan Corp. 5,604 233 Kimberly-Clark Corp. 14,542 978 King Pharmaceuticals, Inc. * 7,768 132 KLA-Tencor Corp. 6,109 347 Kohl's Corp. * 10,286 625 Kraft Foods, Inc., Class A 51,141 1,675 Kroger Co. (The) 22,571 586 L-3 Communications Holdings, Inc. 3,983 389 Laboratory Corp. of America Holdings * 3,749 277 Leggett & Platt, Inc. 5,648 117 Legg Mason, Inc. 4,193 377 Lehman Brothers Holdings, Inc. 16,981 1,053 Lennar Corp., Class A 4,439 136 Lexmark International, Inc., Class A * 3,015 119 Lincoln National Corp. 8,633 521 Linear Technology Corp. 8,092 289 Liz Claiborne, Inc. 3,333 117 Lockheed Martin Corp. 11,314 1,114 Loews Corp. 14,211 674 Lowe's Cos., Inc 47,983 1,344 LSI Corp. * 24,559 177 Ltd Brands, Inc. 10,911 264 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED M&T Bank Corp. 2,416 $ 257 Macy's, Inc. 14,653 529 Manor Care, Inc. 2,333 148 Marathon Oil Corp. 21,869 1,207 Marriott International, Inc. Class A 10,470 435 Marsh & McLennan Cos., Inc 17,707 488 Marshall & Ilsley Corp. 8,261 340 Masco Corp. 12,042 328 Mattel, Inc. 12,540 287 Maxim Integrated Products, Inc. 10,224 324 MBIA, Inc. 4,170 234 McCormick & Co., Inc. 4,151 142 McDonald's Corp. 38,062 1,822 McGraw-Hill Cos., Inc. (The) 10,942 662 McKesson Corp. 9,418 544 MeadWestvaco Corp. 5,880 191 Medco Health Solutions, Inc. * 8,931 726 Medtronic, Inc. 36,713 1,860 MEMC Electronic Materials, Inc. * 7,154 439 Merck & Co., Inc. 69,096 3,431 Meredith Corp. 1,242 70 Merrill Lynch & Co., Inc. 27,762 2,060 MetLife, Inc. 23,643 1,424 MGIC Investment Corp. 2,648 102 Micron Technology, Inc. * 24,114 286 Microsoft Corp. (b) 268,402 7,781 Millipore Corp. * 1,721 135 Molex, Inc. 4,528 128 Molson Coors Brewing Co., Class B 1,510 134 Monsanto Co. 17,328 1,117 Monster Worldwide, Inc. * 4,163 162 Moody's Corp. 7,332 394 Morgan Stanley 33,601 2,146 Motorola, Inc. 73,793 1,254 Murphy Oil Corp. 5,998 372 Mylan Laboratories, Inc. 7,920 127 Nabors Industries, Ltd. * 8,975 262 National City Corp. 18,356 540 National Oilwell Varco, Inc. * 5,663 680 National Semiconductor Corp. 8,895 231 NCR Corp. * 5,735 300 Network Appliance, Inc. * 11,830 335 Newell Rubbermaid, Inc. 8,892 235 Newmont Mining Corp. 14,382 600 News Corp., Class A 74,258 1,568 New York Times Co. (The), Class A 4,588 105 Nicor, Inc. 1,435 57 Nike, Inc., Class B 12,087 682 NiSource, Inc. 8,738 167 Noble Corp. 4,273 438 Nordstrom, Inc. 7,156 341 Norfolk Southern Corp. 12,536 674 Northern Trust Corp. 6,016 376 Northrop Grumman Corp. 11,003 837 Novell, Inc. * 11,104 75 Novellus Systems, Inc. * 4,029 115 Nucor Corp. 9,619 483 CONTINUED 68 EQUITY INDEX SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED NVIDIA Corp. * 11,570 $ 529 Occidental Petroleum Corp. 26,583 1,508 Office Depot, Inc. * 8,815 220 OfficeMax, Inc. 2,402 79 Omnicom Group, Inc. 10,546 547 Oracle Corp. * 126,201 2,413 PACCAR, Inc. 7,917 648 Pactiv Corp. * 4,157 131 Pall Corp. 3,909 162 Parker Hannifin Corp. 3,693 364 Patterson Cos., Inc. * 4,436 159 Paychex, Inc. 10,837 448 Peabody Energy Corp. 8,448 357 Pepsi Bottling Group, Inc. 4,194 140 PepsiCo, Inc. 51,932 3,408 PerkinElmer, Inc. 3,818 106 Pfizer, Inc. 223,752 5,260 PG&E Corp. 11,206 480 Pinnacle West Capital Corp. 3,196 120 Pitney Bowes, Inc. 7,003 323 PNC Financial Services Group, Inc. 10,997 733 Polo Ralph Lauren Corp. 1,954 175 PPG Industries, Inc. 5,234 399 PPL Corp. 12,277 579 Praxair, Inc. 10,161 779 Precision Castparts Corp. 4,387 601 Principal Financial Group, Inc. 8,538 481 Procter & Gamble Co. 100,392 6,210 Progress Energy, Inc. 8,104 354 Progressive Corp. (The) 23,472 492 Prudential Financial, Inc. 14,908 1,321 Public Service Enterprise Group, Inc. 8,059 694 Pulte Homes, Inc. 6,773 131 QLogic Corp. * 5,071 67 QUALCOMM, Inc. 53,139 2,213 Questar Corp. 5,497 283 Quest Diagnostics, Inc. 5,037 279 Qwest Communications International, Inc. * 49,522 422 RadioShack Corp. 4,322 109 Raytheon Co. 14,151 783 Regions Financial Corp. 22,467 676 Reynolds American, Inc. 5,455 334 Robert Half International, Inc. 5,300 180 Rockwell Automation, Inc. 5,029 352 Rockwell Collins, Inc. 5,335 367 Rohm & Haas Co. 4,538 257 Rowan Cos., Inc. 3,527 149 RR Donnelley & Sons Co. 7,017 297 Ryder System, Inc. 1,950 106 SAFECO Corp. 3,385 198 Safeway, Inc. 14,079 449 SanDisk Corp. * 7,276 390 Sara Lee Corp. 23,420 371 Schering-Plough Corp. 47,484 1,355 Schlumberger, Ltd. 37,574 3,559 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Sealed Air Corp. 5,151 $ 140 Sears Holdings Corp. * 2,625 359 Sempra Energy 8,411 443 Sherwin-Williams Co. (The) 3,490 243 Sigma-Aldrich Corp. 4,187 190 SLM Corp. 13,116 645 Smith International, Inc. 6,391 392 Snap-On, Inc. 1,848 97 Solectron Corp. * 28,822 108 Southern Co. 23,969 806 Southwest Airlines Co. 24,894 390 Sovereign Bancorp, Inc. 11,513 220 Spectra Energy Corp. 20,144 513 Sprint Nextel Corp. 92,253 1,894 St Jude Medical, Inc. * 10,786 465 Stanley Works (The) 2,658 147 Staples, Inc. 22,802 525 Starbucks Corp. * 23,617 630 Starwood Hotels & Resorts Worldwide, Inc. 6,858 432 State Street Corp. 12,662 849 Stryker Corp. 9,521 594 Sun Microsystems, Inc. * 113,824 581 Sunoco, Inc. 3,872 258 SunTrust Banks, Inc. 11,370 890 SUPERVALU, Inc. 6,625 276 Symantec Corp. * 28,726 552 Synovus Financial Corp. 10,425 292 SYSCO Corp. 19,701 628 T Rowe Price Group, Inc. 8,468 441 Target Corp. 27,147 1,644 TECO Energy, Inc. 6,682 108 Tektronix, Inc. 2,605 86 Tellabs, Inc. * 13,957 158 Temple-Inland, Inc. 3,374 196 Tenet Healthcare Corp. * 15,080 78 Teradyne, Inc. * 6,048 95 Terex Corp. * 3,287 284 Texas Instruments, Inc. 45,709 1,609 Textron, Inc. 3,999 451 Thermo Fisher Scientific, Inc. * 13,452 702 Tiffany & Co. 4,359 210 Time Warner, Inc. 120,686 2,324 TJX Cos., Inc. 14,502 402 Torchmark Corp. 3,045 187 Transocean, Inc. * 9,187 987 Travelers Cos., Inc. (The) 21,169 1,075 Tribune Co. 2,694 75 TXU Corp. 14,638 955 Tyco Electronics, Ltd. * 15,801 566 Tyco International, Ltd. 15,801 747 Tyson Foods, Inc., Class A 8,060 172 Union Pacific Corp. 8,632 1,028 Unisys Corp. * 11,087 90 CONTINUED 69 EQUITY INDEX SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED United Parcel Service, Inc., Class B 33,764 $ 2,557 United States Steel Corp. 3,772 371 United Technologies Corp. 31,704 2,313 UnitedHealth Group, Inc. 42,723 2,069 Unum Group 10,929 266 US Bancorp 55,433 1,660 UST, Inc. 5,106 273 Valero Energy Corp. 17,503 1,173 Varian Medical Systems, Inc. * 4,064 166 VeriSign, Inc. * 7,815 232 Verizon Communications, Inc. 92,563 3,945 VF Corp. 2,840 244 Viacom, Inc., Class B * 21,970 841 Vulcan Materials Co. 3,038 291 Wachovia Corp. 61,000 2,880 Walgreen Co. 31,908 1,410 Wal-Mart Stores, Inc. 77,286 3,551 Walt Disney Co. (The) 63,177 2,085 Washington Mutual, Inc. 28,344 1,064 Waste Management, Inc. 16,496 627 Waters Corp. * 3,217 187 Watson Pharmaceuticals, Inc. * 3,269 99 Weatherford International, Ltd. * 10,754 595 WellPoint, Inc. * 19,564 1,470 Wells Fargo & Co. 106,476 3,596 Wendy's International, Inc. 2,782 97 Western Union Co. (The) 24,633 491 Weyerhaeuser Co. 6,884 490 Whirlpool Corp. 2,516 257 Whole Foods Market, Inc. 4,507 167 Williams Cos., Inc. 19,092 616 Windstream Corp. 15,199 209 WM Wrigley Jr Co. 6,874 397 WW Grainger, Inc. 2,264 198 Wyeth 42,885 2,081 Wyndham Worldwide Corp. * 5,812 196 Xcel Energy, Inc. 13,037 265 Xerox Corp. * 29,884 522 Xilinx, Inc. 9,497 237 XL Capital, Ltd., Class A 5,928 462 XTO Energy, Inc. 12,222 666 Yahoo!, Inc. * 38,559 897 Yum! Brands, Inc. 16,700 535 Zimmer Holdings, Inc. * 7,549 587 Zions Bancorporation 3,507 261 ------------ TOTAL COMMON STOCKS 407,337 ------------ CONTINUED SHARES VALUE ------------ ------------ REAL ESTATE INVESTMENT TRUSTS (1.1%) Apartment Investment & Management Co., Class A 3,097 $ 131 Archstone-Smith Trust 7,107 408 AvalonBay Communities, Inc. 2,539 274 Boston Properties, Inc. 3,794 358 Developers Diversified Realty Corp. 3,984 191 Equity Residential 9,269 369 General Growth Properties, Inc. 7,815 375 Host Hotels & Resorts, Inc. 16,644 352 Kimco Realty Corp. 7,231 270 Plum Creek Timber Co., Inc. 5,635 219 ProLogis 8,181 466 Public Storage 3,913 274 Simon Property Group, Inc. 7,122 616 Vornado Realty Trust 4,164 446 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS 4,749 ------------ INVESTMENTS IN AFFILIATES (2.5%) Fifth Third Bancorp 17,537 647 Fifth Third Institutional Money Market Fund (a) 9,904,590 9,905 ------------ TOTAL INVESTMENTS IN AFFILIATES 10,552 ------------ TOTAL INVESTMENTS (COST $170,946) - 99.9% 422,638 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 394 ------------ NET ASSETS - 100.0% $ 423,032 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. (b) Part of this security has been designated as initial margin on open futures contracts. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 70 BALANCED SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (63.5%) Abbott Laboratories 14,000 $ 710 Alberto-Culver Co. 24,000 564 Alliant Techsystems, Inc. * 6,000 595 Allstate Corp. (The) 10,000 531 Ameriprise Financial, Inc. 9,600 579 Anixter International, Inc. * 8,500 703 Apache Corp. 6,300 509 Apple, Inc. * 4,500 593 Associated Banc-Corp 20,000 575 AT&T, Inc. 17,000 666 Baxter International, Inc. 17,000 894 Boeing Co. 7,500 776 BorgWarner, Inc. 4,200 368 Cameron International Corp. * 8,100 632 Cardinal Health, Inc. 7,375 485 Chevron Corp. 8,000 682 Cisco Systems, Inc. * 30,000 867 ConocoPhillips 6,000 485 Deere & Co. 5,000 602 Devon Energy Corp. 8,000 597 EMC Corp. * 25,000 463 Franklin Resources, Inc. 4,700 599 Google, Inc., Class A * 900 459 Hormel Foods Corp. 15,000 516 IDEX Corp. 19,000 688 Illinois Tool Works, Inc. 14,000 771 Intel Corp. 23,000 543 Johnson & Johnson 9,500 575 Johnson Controls, Inc. 6,800 769 Kellogg Co. 15,000 777 Kroger Co. (The) 28,000 727 Manitowoc Co., Inc. (The) 5,000 388 Marshall & Ilsley Corp. 14,000 577 McDonald's Corp. 15,000 718 Medtronic, Inc. 11,875 602 Merck & Co., Inc. 14,000 695 Microsoft Corp. 32,000 928 Monsanto Co. 10,500 677 NCR Corp. * 10,000 522 Northern Trust Corp. 13,000 812 Nuveen Investments, Inc., Class A 11,000 673 Oracle Corp. * 34,000 650 PepsiCo, Inc. 9,500 623 Procter & Gamble Co. 13,000 804 Rockwell Collins, Inc. 5,000 343 Schlumberger, Ltd. 8,000 758 Scotts Miracle-Gro Co. (The), Class A 13,000 533 Snap-On, Inc. 9,500 497 Stericycle, Inc. * 12,000 575 SUPERVALU, Inc. 12,650 527 Target Corp. 10,000 606 Texas Instruments, Inc. 15,875 559 Toro Co. 11,000 618 US Bancorp 19,000 569 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Wisconsin Energy Corp. 14,000 $ 601 WMS Industries, Inc. * 19,500 508 WW Grainger, Inc. 7,200 629 Xcel Energy, Inc. 25,000 508 Zimmer Holdings, Inc. * 8,500 661 ------------ TOTAL COMMON STOCKS 36,461 ------------ PRINCIPAL AMOUNT ------------ ASSET-BACKED SECURITIES (1.3%) Aerco, Ltd., Series 2A, Class A3 5.78%, 7/15/25 (a)(b) $ 93 79 GMAC Mortgage Corp. Loan Trust, Series 2004-HE5, Class A4, 4.34%, 9/25/34 (a) 385 381 Green Tree Financial Corp., Series 1995-4, Class M1, 7.60%, 6/15/25 267 273 ------------ TOTAL ASSET-BACKED SECURITIES 733 ------------ CORPORATE BONDS (0.8%) Bank One Capital III, 8.75%, 9/1/30 175 217 COX Communications, Inc., 5.50%, 10/1/15 75 71 Sprint Capital Corp., 8.75%, 3/15/32 65 72 AOL Time Warner, Inc., 7.70%, 5/1/32 75 81 ------------ TOTAL CORPORATE BONDS 441 ------------ FOREIGN BONDS (1.0%) France Telecom SA, 8.50%, 3/1/31 200 251 Gazprom International SA, 7.20%, 2/1/20 (b) 95 96 TransCanada Pipelines, Ltd., 5.60%, 3/31/34 195 180 Vodafone Group PLC, 5.75%, 3/15/16 75 73 ------------ TOTAL FOREIGN BONDS 600 ------------ MORTGAGE-BACKED SECURITIES (23.3%) American Home Mortgage Investment Trust, Series 2005-2, Class 5A4D, 5.33%, 9/25/35 1,500 1,424 Banc of America Funding Corp., Series 2006-G, Class 3A2, 5.75%, 7/20/36 (a) 1,585 1,593 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 13A1, 5.46%, 2/25/36 (a) 901 886 Bear Stearns Alt-A Trust, Series 2005-9, Class 21A2, 5.77%, 11/25/35 (a) 348 353 Bear Stearns Commercial Mortgage Securities, Series 2000-WF2, Class A1, 7.11%, 10/15/32 257 258 CONTINUED 71 BALANCED SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES (23.3%) Bear Stearns Commercial Mortgage Securities, Series 2004-T14, Class A4, 5.20%, 1/12/41 $ 700 $ 680 Chase Mortgage Finance Corp., Series 2003-S13, Class A16, 5.00%, 11/25/33 1,446 1,350 Chase Mortgage Finance Corp., Series 2005-A1, Class 2A2, 5.24%, 12/25/35 (a)(d) 1,564 1,554 Chaseflex Trust, Series 2006-1, Class A2A, 5.94%, 6/25/36 400 401 Countrywide Alternative Loan Trust, Series 2005-J3, Class 3A1, 6.50%, 9/25/34 219 221 Countrywide Alternative Loan Trust, Series 2005-74T1, Class A1, 6.00%, 1/25/36 353 352 Crown Castle Towers LLC, Series 2006-1A, Class E, 6.07%, 11/15/36 (b) 650 619 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 700 687 Indymac Index Mortgage Loan Trust, Series 2005-AR9, Class 1A1, 5.44%, 7/25/35 (a) 227 230 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.84%, 2/25/35 (a) 347 343 Morgan Stanley Capital I, Series 2004-IQ8, Class A5, 5.11%, 6/15/40 800 770 Morgan Stanley Dean Witter Capital I, Series 2003-TOP9, Class A2, 4.74%, 11/13/36 700 671 Morgan Stanley Mortgage Loan Trust, Series 2004-4, Class 3A, 5.00%, 8/25/19 658 634 WaMu Mortgage Pass Through Certificates, Series 2004-AR3, Class A2, 4.24%, 6/25/34 (a) 340 334 ------------ TOTAL MORTGAGE-BACKED SECURITIES 13,360 ------------ U.S. GOVERNMENT AGENCIES (10.0%) FANNIE MAE (5.5%) 5.50%, 2/1/25 206 201 5.00%, 5/1/25 382 365 7.50%, 6/1/27 25 26 7.00%, 6/1/32 10 10 7.00%, 8/1/32 31 32 6.00%, 8/25/33 (a) 386 376 7.00%, 9/1/34 5 5 5.00%, 10/1/35 160 151 6.00%, 10/1/35 285 283 5.50%, 11/1/35 94 91 5.50%, 2/1/36 288 279 5.50%, 11/1/36 144 140 5.50%, 1/1/37 455 439 5.50%, 4/25/37 239 217 7.00%, 5/1/37 70 72 5.50%, 8/1/37, TBA 500 483 ------------ 3,170 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES, CONTINUED FREDDIE MAC (3.1%) 7.50%, 7/1/27 $ 9 $ 10 7.50%, 8/1/27 45 48 7.50%, 11/1/27 30 31 7.50%, 12/1/27 45 47 6.50%, 11/1/31 463 473 7.00%, 1/1/32 6 6 4.50%, 6/1/34 163 148 5.50%, 3/15/35 235 229 5.00%, 8/1/35 75 70 5.00%, 11/1/35 66 62 6.00%, 12/1/35 264 262 5.00%, 7/1/36 412 387 ------------ 1,773 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.5%) 6.50%, 4/15/32 121 124 7.00%, 7/20/32 59 62 0.57%, 4/16/46, IO (a) 3,468 132 ------------ 318 ------------ TENNESSEE VALLEY AUTHORITY (0.9%) 6.53%, 12/15/17 ** 900 526 ------------ TOTAL U.S. GOVERNMENT AGENCIES 5,787 ------------ SHARES ------------ INVESTMENTS IN AFFILIATES (c) (2.0%) Fifth Third Institutional Money Market Fund 1,171,064 1,171 ------------ TOTAL INVESTMENTS IN AFFILIATES 1,171 ------------ TOTAL INVESTMENTS (COST $55,110) - 101.9% 58,553 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.9)% (1,116) ------------ NET ASSETS - 100.0% $ 57,437 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund. (d) All or part of this security has been designated as collateral for TBA securities. The following abbreviations are used in the Schedule of Portfolio Investments: IO - Interest Only TBA - To be announced SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 72 MICRO CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (94.0%) Abigail Adams National Bancorp 21,990 $ 305 ABX Air, Inc. * 134,090 975 Aceto Corp. 74,380 678 ActivIdentity Corp. * 149,450 637 Agilysys, Inc. 50,540 971 AmCOMP, Inc. * 39,560 333 American Bancorp of New Jersey 62,300 669 American Dental Partners, Inc. * 35,060 900 AmericanWest Bancorp 33,610 513 Amerisafe, Inc. * 31,990 537 Apogee Enterprises, Inc. 22,120 570 Audiovox Corp., Class A * 52,930 536 B&G Foods, Inc., Class A 54,717 728 Bank of Florida Corp. * 35,110 547 Barrett Business Services, Inc. 36,360 918 Benihana, Inc. * 10,460 204 Benihana, Inc., Class A * 24,610 477 Benjamin Franklin Bancorp, Inc. 37,480 505 Berkshire Hills Bancorp, Inc. 30,500 800 Bluegreen Corp. * 90,040 762 B of I Holding, Inc. * 79,470 591 Bronco Drilling Co., Inc. * 47,060 682 Callon Petroleum Co. * 47,940 672 Catalyst Semiconductor, Inc. * 101,810 485 CBIZ, Inc. * 79,660 543 Center Bancorp, Inc. 52,487 729 Champps Entertainment, Inc. * 36,110 195 Chesapeake Utilities Corp. 21,450 700 Citizens Community Bancorp, Inc. 36,950 333 Crawford & Co., Class B 104,190 621 CTS Corp. 36,610 466 D&E Communications, Inc. 37,360 590 DEB Shops, Inc. 17,770 460 Digimarc Corp. * 38,500 406 Ducommun, Inc. * 36,000 1,003 Edge Petroleum Corp. * 70,100 870 EDO Corp. 27,390 905 Epic Bancorp 25,020 329 First Clover Leaf Financial Corp. 37,450 386 First Merchants Corp. 32,690 662 First State Bancorporation 36,340 627 Flanders Corp. * 132,900 769 FPIC Insurance Group, Inc. * 12,140 422 Frisch's Restaurants, Inc. 15,340 453 GSI Group, Inc. * 73,260 791 Hartmarx Corp. * 188,320 1,610 HealthTronics, Inc. * 97,360 389 Hooper Holmes, Inc. * 195,010 511 ICT Group, Inc. * 39,670 626 Inventure Group, Inc. (The) * 166,170 499 Irwin Financial Corp. 59,270 695 IXYS Corp. * 90,820 864 KNBT Bancorp, Inc. 49,680 653 Lithia Motors, Inc., Class A 29,441 606 LMI Aerospace, Inc. * 50,020 1,109 Lydall, Inc. * 36,020 416 MainSource Financial Group, Inc. 49,760 775 Material Sciences Corp. * 27,400 301 Medical Action Industries, Inc. * 34,910 679 Michael Baker Corp. * 17,120 617 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Microtek Medical Holdings, Inc. * 219,300 $ 1,072 Monro Muffler, Inc. 23,777 796 Monterey Gourmet Foods, Inc. * 100,060 385 MTC Technologies, Inc. * 32,320 706 MVC Capital, Inc. 18,940 306 Nanometrics, Inc. * 58,620 378 National Atlantic Holdings Corp. * 41,200 578 National Dentex Corp. * 48,690 837 Ness Technologies, Inc. * 71,360 839 NGP Capital Resources Co. 55,810 866 North Pointe Holdings Corp. * 37,859 440 Northrim BanCorp, Inc. 20,630 617 Northwest Pipe Co. * 7,390 248 OSI Systems, Inc. * 32,850 813 Overhill Farms, Inc. * 110,770 643 PAR Technology Corp. * 89,250 758 Perceptron, Inc. * 48,400 474 Powell Industries, Inc. * 38,980 1,310 Procentury Corp. 27,560 385 Quaker Chemical Corp. 28,360 616 Radyne Corp. * 96,300 1,076 Renasant Corp. 32,890 631 Res-Care, Inc. * 38,430 747 RG Barry Corp. * 23,300 240 Rocky Brands, Inc. * 50,940 592 Rudolph Technologies, Inc. * 52,270 818 Rurban Financial Corp. 11,848 152 Sanders Morris Harris Group, Inc. 75,000 736 Schawk, Inc. 45,050 861 Schweitzer-Mauduit International, Inc. 35,100 801 SeaBright Insurance Holdings, Inc. * 32,430 588 Secure Computing Corp. * 113,400 896 Semitool, Inc. * 110,700 1,059 Simmons First National Corp., Class A 31,110 718 Southcoast Financial Corp. * 18,678 355 Standard Register Co. (The) 52,480 705 Stealthgas, Inc. 69,420 1,196 Stein Mart, Inc. 56,400 614 Stepan Co. 34,850 962 Superior Uniform Group, Inc. 35,030 433 Symmetricom, Inc. * 163,540 1,220 Synplicity, Inc. * 100,610 702 Tasty Baking Co. 43,630 453 TTM Technologies, Inc. * 82,240 1,072 Ultratech, Inc. * 45,110 566 United Western Bancorp, Inc. 30,850 735 Universal Electronics, Inc. * 17,490 616 US Xpress Enterprises, Inc., Class A * 27,425 484 Vignette Corp. * 57,500 1,210 Warwick Valley Telephone Co. 32,210 428 Washington Trust Bancorp, Inc. 29,370 696 White Electronic Designs Corp. * 116,830 680 Willbros Group, Inc. * 36,490 1,150 Zygo Corp. * 53,250 640 ------------ TOTAL COMMON STOCKS 75,504 ------------ CONTINUED 73 MICRO CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENT COMPANIES (0.5%) Equus Total Return, Inc. 49,610 $ 416 ------------ TOTAL INVESTMENT COMPANIES 416 ------------ REAL ESTATE INVESTMENT TRUSTS (3.1%) Hersha Hospitality Trust 107,120 1,125 MHI Hospitality Corp. 60,640 646 Monmouth Reit, Class A 80,640 697 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS 2,468 ------------ INVESTMENTS IN AFFILIATES (a) (3.6%) Fifth Third Institutional Money Market Fund 2,930,010 2,930 ------------ TOTAL INVESTMENTS IN AFFILIATES 2,930 ------------ TOTAL INVESTMENTS (COST $71,275) - 101.2% 81,318 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.2)% (999) ------------ NET ASSETS - 100.0% $ 80,319 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. SMALL CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (93.8%) ADC Telecommunications, Inc. * 110,800 $ 2,071 Agilysys, Inc. 84,400 1,621 Albany International Corp., Class A 51,300 1,923 Alexander & Baldwin, Inc. 23,175 1,257 Anixter International, Inc. * 23,600 1,951 Axcelis Technologies, Inc. * 172,849 959 Bluegreen Corp. * 137,850 1,166 Bob Evans Farms, Inc. 34,625 1,124 Cabot Microelectronics Corp. * 56,900 2,426 Casey's General Stores, Inc. 89,200 2,224 Coeur d'Alene Mines Corp. * 392,275 1,534 Community Bank System, Inc. 83,550 1,503 CTS Corp. 120,500 1,535 EDO Corp. 67,325 2,225 Endurance Specialty Holdings, Ltd. 53,575 2,004 EnerSys * 136,325 2,467 EnPro Industries, Inc. * 61,525 2,423 Extreme Networks * 381,450 1,549 Ferro Corp. 112,000 2,503 Griffon Corp. * 68,175 1,198 Group 1 Automotive, Inc. 32,350 1,214 Headwaters, Inc. * 74,800 1,206 Hooper Holmes, Inc. * 322,050 844 ICT Group, Inc. * 64,125 1,013 Inter-Tel, Inc. 42,000 1,042 Iowa Telecommunications Services, Inc. 108,925 2,239 Irwin Financial Corp. 130,600 1,531 Jo-Ann Stores, Inc. * 41,675 992 Kellwood Co. 36,125 926 Kindred Healthcare, Inc. * 71,750 1,921 La-Z-Boy, Inc. 134,275 1,344 Lithia Motors, Inc., Class A 52,825 1,088 MainSource Financial Group, Inc. 82,612 1,287 MarineMax, Inc. * 62,775 1,174 MasTec, Inc. * 88,747 1,213 Molina Healthcare, Inc. * 63,925 2,007 NewAlliance Bancshares, Inc. 133,200 1,800 Oil States International, Inc. * 55,575 2,431 Orthofix International NV * 52,100 2,243 Overseas Shipholding Group 28,025 2,174 PepsiAmericas, Inc. 46,575 1,289 Performance Food Group Co. * 53,450 1,532 Pioneer Drilling Co. * 121,625 1,530 Platinum Underwriters Holdings, Ltd. 74,475 2,473 PolyOne Corp. * 222,175 1,671 Quebecor World, Inc. 154,800 1,789 Sanderson Farms, Inc. 14,965 597 Schawk, Inc. 97,800 1,868 Schnitzer Steel Industries, Inc., Class A 39,600 2,146 Schweitzer-Mauduit International, Inc. 93,600 2,137 Semitool, Inc. * 142,200 1,361 South Financial Group, Inc. (The) 55,850 1,204 South Jersey Industries, Inc. 45,225 1,482 Steak N Shake Co. (The) * 106,150 1,592 Sybase, Inc. * 52,400 1,243 CONTINUED 74 SMALL CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Tronox, Inc., Class A 137,100 $ 1,630 Tsakos Energy Navigation, Ltd. 29,250 2,126 UCBH Holdings, Inc. 103,425 1,700 UMB Financial Corp. 81,050 3,026 United Bankshares, Inc. 68,756 1,915 United Online, Inc. 73,675 1,040 United Rentals, Inc. * 80,775 2,596 Vectren Corp. 93,450 2,333 Werner Enterprises, Inc. 65,800 1,279 Westar Energy, Inc. 72,150 1,661 ------------ TOTAL COMMON STOCKS 108,572 ------------ REAL ESTATE INVESTMENT TRUSTS (3.9%) Ashford Hospitality Trust, Inc. 215,975 2,208 BioMed Realty Trust, Inc. 33,700 736 U-Store-It Trust 110,150 1,576 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS 4,520 ------------ INVESTMENTS IN AFFILIATES (a) (2.6%) Fifth Third Institutional Money Market Fund 2,973,874 2,974 ------------ TOTAL INVESTMENTS IN AFFILIATES 2,974 ------------ TOTAL INVESTMENTS (COST $109,168) - 100.3% 116,066 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (296) ------------ NET ASSETS - 100.0% $ 115,770 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. MULTI CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (95.8%) 3M Co. 50,102 $ 4,455 Abbott Laboratories 83,484 4,232 Alcoa, Inc. 100,200 3,828 Allstate Corp. (The) 33,387 1,775 Alltel Corp. 33,387 2,202 American Electric Power Co., Inc. 66,818 2,906 American International Group, Inc. 116,871 7,501 Anadarko Petroleum Corp. 98,207 4,943 Applied Materials, Inc. 200,405 4,417 AT&T, Inc. 100,200 3,924 Autoliv, Inc. 20,049 1,121 Avnet, Inc. * 16,592 629 Bank of America Corp. 133,586 6,335 Bank of New York Mellon Corp. (The) 173,291 7,374 Bob Evans Farms, Inc. 83,484 2,709 BorgWarner, Inc. 36,720 3,174 Brunswick Corp. 33,400 934 Cabot Microelectronics Corp. * 64,064 2,731 Caterpillar, Inc. 46,763 3,685 Charles Schwab Corp. (The) 150,302 3,026 Chevron Corp. 66,818 5,697 Cigna Corp. 120,299 6,212 Citigroup, Inc. 66,805 3,111 Coca-Cola Enterprises, Inc. 90,170 2,043 Coherent, Inc. * 50,102 1,450 Comerica, Inc. 53,436 2,814 Computer Sciences Corp. * 32,044 1,784 ConAgra Foods, Inc. 123,587 3,133 ConocoPhillips 90,155 7,288 CSX Corp. 26,715 1,267 Deere & Co. 7,263 875 Dover Corp. 26,715 1,363 Dow Chemical Co. (The) 80,151 3,485 Duke Energy Corp. 73,485 1,251 Edge Petroleum Corp. * 10,000 124 Edison International 50,102 2,650 E.I. du Pont de Nemours & Co. 80,151 3,745 Exxon Mobil Corp. 103,538 8,814 FPL Group, Inc. 33,387 1,927 Gannett Co., Inc. 46,769 2,334 General Dynamics Corp. 40,098 3,150 General Electric Co. 90,543 3,509 Goldman Sachs Group, Inc. (The) 20,049 3,776 Harris Corp. 30,053 1,649 Hartford Financial Services Group, Inc. 43,431 3,990 Headwaters, Inc. * 25,000 403 Health Management Associates, Inc., Class A 133,586 1,077 Hewlett-Packard Co. 40,098 1,846 HJ Heinz Co. 36,720 1,607 Home Depot, Inc. 109,954 4,087 Honda Motor Co., Ltd. ADR 50,102 1,805 Honeywell International, Inc. 80,151 4,610 Horace Mann Educators Corp. 69,510 1,239 ICT Group, Inc. * 51,250 809 Intel Corp. 217,076 5,127 CONTINUED 75 MULTI CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED International Business Machines Corp. 42,100 $ 4,658 International Rectifier Corp. * 77,500 2,845 Jakks Pacific, Inc. * 66,818 1,584 Johnson & Johnson 50,102 3,031 Jones Apparel Group, Inc. 83,484 2,084 JPMorgan Chase & Co. 166,973 7,348 Keycorp 66,818 2,318 Kraft Foods, Inc., Class A 83,484 2,734 Laboratory Corp. of America Holdings* 30,053 2,219 Lincare Holdings, Inc. * 20,049 716 Lubrizol Corp. 53,128 3,329 Manpower, Inc. 26,715 2,112 Marathon Oil Corp. 146,970 8,113 McDonald's Corp. 80,151 3,837 MetLife, Inc. 60,102 3,619 Molson Coors Brewing Co., Class B 36,720 3,266 Motorola, Inc. 34,390 584 Nabors Industries, Ltd. * 128,815 3,767 National City Corp. 133,586 3,926 Natuzzi SpA ADR * 54,897 410 New York Community Bancorp, Inc. 133,586 2,168 New York Times Co. (The), Class A 133,605 3,054 NiSource, Inc. 60,102 1,146 Omnicare, Inc. 25,050 831 Pall Corp. 76,834 3,190 Pepco Holdings, Inc. 93,534 2,532 Pfizer, Inc. 233,791 5,496 Piper Jaffray Cos. * 13,383 641 Pitney Bowes, Inc. 16,716 771 Radian Group, Inc. 14,663 494 Safeway, Inc. 116,871 3,725 SanDisk Corp. * 59,600 3,196 Schering-Plough Corp. 123,587 3,527 Snap-On, Inc. 20,049 1,049 Spectra Energy Corp. 36,720 935 Sprint Nextel Corp. 100,200 2,057 Standard Register Co. (The) 146,376 1,967 Stanley Works (The) 50,102 2,772 SunTrust Banks, Inc. 40,098 3,140 SUPERVALU, Inc. 100,200 4,175 Symmetricom, Inc. * 219,564 1,638 TD Ameritrade Holding Corp. * 66,818 1,133 Tidewater, Inc. 46,769 3,200 Tupperware Brands Corp. 66,805 1,738 Tyson Foods, Inc., Class A 200,405 4,269 UCBH Holdings, Inc. 50,102 824 Union Pacific Corp. 20,049 2,389 United Technologies Corp. 33,387 2,436 US Bancorp 100,200 3,001 UST, Inc. 16,716 895 Verizon Communications, Inc. 200,405 8,541 Vishay Intertechnology, Inc. * 66,818 1,036 Walt Disney Co. (The) 56,769 1,873 Windstream Corp. 87,980 1,211 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Wyeth 26,715 $ 1,296 YRC Worldwide, Inc. * 66,527 2,137 ------------ TOTAL COMMON STOCKS 318,935 ------------ INVESTMENTS IN AFFILIATES (a) (4.2%) Fifth Third Institutional Money Market Fund 14,094,652 14,095 ------------ TOTAL INVESTMENTS IN AFFILIATES 14,095 ------------ TOTAL INVESTMENTS (COST $247,615) - 100.0% 333,030 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% 49 ------------ NET ASSETS - 100.0% $ 333,079 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. The following abbreviation is used in the Schedule of Portfolio Investments: ADR - American Depositary Receipt SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 76 DISCIPLINED LARGE CAP VALUE SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (96.9%) 3M Co. 106,981 $ 9,513 Abbott Laboratories 157,884 8,003 Alcoa, Inc. 252,615 9,650 Allstate Corp. (The) 199,987 10,629 Altria Group, Inc. 210,512 13,993 American International Group, Inc. 231,563 14,862 Anheuser-Busch Cos., Inc. 168,410 8,213 Apache Corp. 126,307 10,211 Applied Materials, Inc. 463,127 10,207 AT&T, Inc. 778,895 30,502 Bank of America Corp. 599,960 28,450 Bank of New York Mellon Corp. (The) 397,026 16,893 Black & Decker Corp. 64,000 5,540 Carnival Corp. 129,088 5,720 Caterpillar, Inc. 85,696 6,753 Chevron Corp. 252,615 21,538 Citigroup, Inc. 305,243 14,215 Computer Sciences Corp. * 86,784 4,832 ConAgra Foods, Inc. 194,596 4,933 ConocoPhillips 275,350 22,259 Discover Financial Services * 78,736 1,815 Dow Chemical Co. (The) 326,294 14,187 Edison International 168,410 8,907 E.I. du Pont de Nemours & Co. 86,783 4,055 Eli Lilly & Co. 210,512 11,387 Exxon Mobil Corp. 168,410 14,337 Fiserv, Inc. * 168,410 8,323 Fortune Brands, Inc. 79,221 6,441 FPL Group, Inc. 168,410 9,722 Gannett Co., Inc. 145,253 7,248 General Electric Co. 610,485 23,662 Halliburton Co. 329,662 11,874 Hartford Financial Services Group, Inc. 147,359 13,538 Honeywell International, Inc. 126,307 7,264 Intel Corp. 631,537 14,917 International Business Machines Corp. 63,999 7,081 Johnson & Johnson 252,615 15,283 JPMorgan Chase & Co. 537,648 23,662 Kraft Foods, Inc., Class A 453,022 14,836 Marathon Oil Corp. 210,512 11,620 MetLife, Inc. 368,396 22,185 Morgan Stanley 168,410 10,756 National City Corp. 257,251 7,561 Northrop Grumman Corp. 43,282 3,294 Parker Hannifin Corp. 63,154 6,232 Pfizer, Inc. 442,076 10,393 Pitney Bowes, Inc. 210,512 9,705 RR Donnelley & Sons Co. 168,410 7,117 Sunoco, Inc. 147,359 9,832 SunTrust Banks, Inc. 168,410 13,187 Time Warner, Inc. 505,229 9,731 TJX Cos., Inc. 336,820 9,347 UnitedHealth Group, Inc. 189,461 9,176 United Technologies Corp. 147,359 10,753 UST, Inc. 157,884 8,455 CONTINUED SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Verizon Communications, Inc. 362,923 $ 15,468 Wal-Mart Stores, Inc. 129,087 5,932 Windstream Corp. 215,627 2,967 Wyeth 155,779 7,558 ------------ TOTAL COMMON STOCKS 666,724 ------------ INVESTMENTS IN AFFILIATES (a) (3.1%) Fifth Third Institutional Money Market Fund $ 21,394,228 21,394 ------------ TOTAL INVESTMENTS IN AFFILIATES 21,394 ------------ TOTAL INVESTMENTS (COST $570,379) - 100.0% 688,118 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.0)% (121) ------------ NET ASSETS - 100.0% $ 687,997 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 77 LIFEMODEL AGGRESSIVE SM SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (a) (99.9%) Fifth Third Bond Fund 280,777 $ 2,718 Fifth Third Disciplined Large Cap Value Fund 2,006,868 28,899 Fifth Third High Yield Bond Fund 26,084 250 Fifth Third Institutional Money Market Fund 2,311,876 2,312 Fifth Third Intermediate Bond Fund 601,219 5,730 Fifth Third International Equity Fund 2,173,272 33,794 Fifth Third Structured Large Cap Plus Fund 1,866,130 31,612 Fifth Third Mid Cap Growth Fund * 1,184,269 18,593 Fifth Third Multi Cap Value Fund 569,319 14,603 Fifth Third Quality Growth Fund 2,213,347 40,991 Fifth Third Short Term Bond Fund 371,843 3,465 Fifth Third Small Cap Growth Fund 695,208 9,330 Fifth Third Small Cap Value Fund 352,196 7,146 ------------ TOTAL INVESTMENTS IN AFFILIATES 199,443 ------------ TOTAL INVESTMENTS (COST $161,013) - 99.9% 199,443 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 147 ------------ NET ASSETS - 100.0% $ 199,590 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. LIFEMODEL MODERATELY AGGRESSIVE SM SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (a) (100.0%) Fifth Third Bond Fund 1,778,421 $ 17,215 Fifth Third Disciplined Large Cap Value Fund 2,609,087 37,571 Fifth Third High Yield Bond Fund 1,101,524 10,541 Fifth Third Institutional Money Market Fund 1,699,139 1,699 Fifth Third Intermediate Bond Fund 4,482,647 42,720 Fifth Third International Equity Fund 2,880,201 44,787 Fifth Third Structured Large Cap Plus Fund 2,560,635 43,377 Fifth Third Mid Cap Growth Fund * 1,570,293 24,654 Fifth Third Multi Cap Value Fund 754,065 19,342 Fifth Third Quality Growth Fund 2,969,928 55,003 Fifth Third Short Term Bond Fund 2,551,399 23,779 Fifth Third Small Cap Growth Fund 920,614 12,355 Fifth Third Small Cap Value Fund 466,961 9,474 ------------ TOTAL INVESTMENTS IN AFFILIATES 342,517 ------------ TOTAL INVESTMENTS (COST $283,808) - 100.0% 342,517 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.0)% (63) ------------ NET ASSETS - 100.0% $ 342,454 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 78 LIFEMODEL MODERATE SM SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES(a) (100.1%) Fifth Third Bond Fund 4,889,210 $ 47,327 Fifth Third Disciplined Large Cap Value Fund 2,872,291 41,361 Fifth Third High Yield Bond Fund 2,168,129 20,749 Fifth Third Institutional Money Market Fund 1,857,113 1,857 Fifth Third Intermediate Bond Fund 11,901,425 113,421 Fifth Third International Equity Fund 3,087,377 48,009 Fifth Third Structured Large Cap Plus Fund 2,616,828 44,329 Fifth Third Mid Cap Growth Fund* 1,682,236 26,411 Fifth Third Multi Cap Value Fund 808,929 20,749 Fifth Third Quality Growth Fund 3,242,817 60,057 Fifth Third Short Term Bond Fund 6,968,640 64,948 Fifth Third Small Cap Growth Fund 986,201 13,235 Fifth Third Small Cap Value Fund 500,906 10,163 ------------ TOTAL INVESTMENTS IN AFFILIATES 512,616 ------------ TOTAL INVESTMENTS (COST $461,368) - 100.1% 512,616 LIABILITIES IN EXCESS OF OTHER ASSETS - ( 0.1)% (416) ------------ NET ASSETS - 100.0% $ 512,200 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. LIFEMODEL MODERATELY CONSERVATIVE SM SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (a) (100.3%) Fifth Third Bond Fund 1,171,291 $ 11,338 Fifth Third Disciplined Large Cap Value Fund 423,643 6,100 Fifth Third High Yield Bond Fund 415,813 3,979 Fifth Third Institutional Money Market Fund 322,512 323 Fifth Third Intermediate Bond Fund 2,823,290 26,906 Fifth Third International Equity Fund 480,232 7,468 Fifth Third Structured Large Cap Plus Fund 446,086 7,557 Fifth Third Mid Cap Growth Fund * 261,482 4,105 Fifth Third Multi Cap Value Fund 125,923 3,230 Fifth Third Quality Growth Fund 486,099 9,003 Fifth Third Short Term Bond Fund 1,646,816 15,348 Fifth Third Small Cap Growth Fund 153,608 2,061 Fifth Third Small Cap Value Fund 77,749 1,577 ------------ TOTAL INVESTMENTS IN AFFILIATES 98,995 ------------ TOTAL INVESTMENTS (COST $88,900) - 100.3% 98,995 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (321) ------------ NET ASSETS - 100.0% $ 98,674 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 79 LIFEMODEL CONSERVATIVE SM SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (a) (99.5%) Fifth Third Bond Fund 814,726 $ 7,887 Fifth Third Disciplined Large Cap Value Fund 121,611 1,751 Fifth Third High Yield Bond Fund 267,815 2,563 Fifth Third Institutional Money Market Fund 713,555 714 Fifth Third Intermediate Bond Fund 1,947,902 18,563 Fifth Third International Equity Fund 132,351 2,058 Fifth Third Structured Large Cap Plus Fund 114,918 1,947 Fifth Third Mid Cap Growth Fund * 72,153 1,133 Fifth Third Multi Cap Value Fund 34,616 888 Fifth Third Quality Growth Fund 137,928 2,554 Fifth Third Short Term Bond Fund 1,151,605 10,733 Fifth Third Small Cap Growth Fund 42,265 567 Fifth Third Small Cap Value Fund 21,413 434 ------------ TOTAL INVESTMENTS IN AFFILIATES 51,792 ------------ TOTAL INVESTMENTS (COST $50,037) - 99.5% 51,792 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.5% 241 ------------ NET ASSETS - 100.0% $ 52,033 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. STRATEGIC INCOME SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET-BACKED SECURITIES (2.2%) Aerco, Ltd., Series N Ap-2A, Class A3, 5.78%, 7/15/25 (a) (b) $ 1,025 $ 871 Citibank Credit Card Issuance Trust, Series 2003-A3, Class A3, 3.10%, 3/10/10 500 494 Residential Asset Securities Corp., Series 2006-KS3, Class AI3, 5.49%, 4/25/36 (a) 1,000 996 Susquehanna Auto Lease Trust, Series 2007-1, Class B, 5.31%, 7/14/10 (b) 1,000 1,001 ------------ TOTAL ASSET-BACKED SECURITIES 3,362 ------------ CONVERTIBLE BONDS (0.8%) Ford Motor Co., 4.25%, 12/15/36 1,000 1,158 ------------ TOTAL CONVERTIBLE BONDS 1,158 ------------ CORPORATE BONDS (23.2%) American General Finance Corp., 5.75%, 9/15/16 1,000 982 Bankers Trust Corp., 7.25%, 10/15/11 1,000 1,068 Bear Stearns Cos., Inc. (The), 4.65%, 7/2/18 1,000 834 Capital One Financial Corp., 6.15%, 9/1/16 1,500 1,457 CIT Group, Inc., 4.00%, 5/8/08 1,000 988 Comcast Cable Communications LLC, 7.13%, 6/15/13 500 529 Comcast Cable Holdings LLC, 7.88%, 8/1/13 1,100 1,199 Core Investment Grade Bond Trust I, 4.64%, 11/30/07 442 440 COX Communications, Inc., 7.75%, 11/1/10 1,000 1,061 Cullen Frost Cap Trust I, 6.91%, 3/1/34 (a) 1,000 1,026 CVS Caremark Corp., 7.77%, 1/10/12 (b) 773 834 Developers Diversified Realty Corp., 3.88%, 1/30/09 1,000 975 Emigrant Capital Trust, 7.45%, 12/10/33 (a) (b) 1,000 994 First Tennessee Capital II, Series B, 6.30%, 4/15/34 1,500 1,404 FPL Group Capital, Inc., 6.65%, 6/15/67 (a) 1,000 981 Goldman Sachs Group, Inc. (The), 5.25%, 10/15/13 1,000 968 HVB Funding Trust I, 8.74%, 6/30/31 (b) 1,000 1,213 International Business Machines Corp., 4.95%, 3/22/11 1,000 989 International Lease Finance Corp., Series O, 4.38%, 11/1/09 1,000 983 Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,527 CONTINUED 80 STRATEGIC INCOME SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS, CONTINUED Lehman Brothers Holdings, Inc., 5.45%, 10/22/08 (a) $ 1,000 $ 1,000 Marsh & McLennan Cos., Inc, 5.88%, 8/1/33 500 423 Motorola, Inc., 6.50%, 11/15/28 500 471 Pacific Gas & Electric Co., 4.20%, 3/1/11 1,000 958 Pemex Project Funding Master Trust, 7.88%, 2/1/09 1,000 1,029 Public Service Co. of Oklahoma, Series C, 4.85%, 9/15/10 500 491 Radian Group, Inc., 5.63%, 2/15/13 500 503 RBS Capital Trust B, 6.80%, 3/31/08 (d) 500 481 SLM Corp., 3.82%, 4/1/09 (a) 1,000 933 SLM Corp., 4.70%, 11/21/13 (a) 1,000 800 SLM Corp., Series A, 3.97%, 2/1/10 (a) 1,000 912 Sprint Capital Corp., 8.38%, 3/15/12 1,500 1,643 Time Warner Cable, Inc., 5.40%, 7/2/12 (b) 1,000 985 Time Warner Entertainment Co. LP, 8.88%, 10/1/12 1,500 1,700 Union Pacific Corp., 3.63%, 6/1/10 500 479 Union Planters Corp., 4.38%, 12/1/10 500 490 Wells Fargo Bank NA, 5.95%, 8/26/36 1,000 969 Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,481 ------------ TOTAL CORPORATE BONDS 36,200 ------------ FOREIGN BONDS (4.5%) AXA SA, 6.46%, 12/14/18 (a) (b) (d) 1,000 891 HBOS PLC, 5.38%, 11/1/13 (a) (b) (d) 2,000 1,949 Hutchison Whampoa International, Ltd., 6.50%, 2/13/13 (b) 1,000 1,027 Invesco PLC, 5.38%, 2/27/13 500 486 Korea Development Bank, 3.88%, 3/2/09 1,000 977 Mexico Government International Bond, 6.75%, 9/27/34 1,000 1,050 Russia Government International Bond, 8.25%, 3/31/10 (b) 667 688 ------------ TOTAL FOREIGN BONDS 7,068 ------------ MORTGAGE-BACKED SECURITIES (4.4%) Bear Stearns Asset Backed Securities Trust, Series 2003-AC7, Class A2, 5.25%, 1/25/34 628 615 Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-48, Class 2A3, 4.58%, 10/25/33 (a) 1,296 1,248 Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB5, Class 4A1, 5.01%, 4/20/35 (a) 402 403 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 1,000 985 CONTINUED PRINCIPAL AMOUNT VALUE -------------- --------------- MORTGAGE-BACKED SECURITIES, CONTINUED JP Morgan Mortgage Trust, Series 2007-A2, Class 4A1M, 5.81%, 4/25/37 (a) $ 955 $ 951 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.53%, 12/25/32 (a) 111 113 WaMu Mortgage Pass Through Certificates, Series 2003-AR10, Class A4, 4.06%, 10/25/33 (a) 505 502 Wells Fargo Mortgage Backed Securities Trust, Series 2004-X, Class 1A5, 4.93%, 11/25/34 (a) 1,000 983 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR10, Class 2A14, 4.11%, 6/25/35 (a) 1,000 984 ------------ TOTAL MORTGAGE-BACKED SECURITIES 6,784 ------------ U.S. GOVERNMENT AGENCIES (3.7%) FANNIE MAE (1.6%) 5.13%, 1/2/14 1,000 988 4.22%, 7/1/18 (a) 541 531 7.00%, 5/1/37 998 1,025 ------------ 2,544 ------------ FREDDIE MAC (0.7%) 5.00%, 9/15/25 969 963 7.27%, 10/1/32 (a) 177 177 ------------ 1,140 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.4%) 5.47%, 8/16/27 (a) 1,150 1,148 4.89%, 7/16/34 1,000 945 ------------ 2,093 ------------ TOTAL U.S. GOVERNMENT AGENCIES 5,777 ------------ U.S. TREASURY OBLIGATIONS (0.6%) U.S. TREASURY NOTES (0.6%) 4.75%, 12/31/08 1,000 1,001 ------------ TOTAL U.S. TREASURY OBLIGATIONS 1,001 ------------ SHARES ------------ COMMON STOCKS (7.6%) Altria Group, Inc. 22,650 1,506 American Capital Strategies, Ltd. 7,875 299 Bank of America Corp. 19,900 944 BB&T Corp. 4,800 180 Chevron Corp. 8,430 719 Citigroup, Inc. 16,925 788 Duke Energy Corp. 25,800 439 FPL Group, Inc. 13,650 788 General Electric Co. 10,735 416 Kraft Foods, Inc., Class A 15,674 513 Marshall & Ilsley Corp. 4,400 181 CONTINUED 81 STRATEGIC INCOME SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Merck & Co., Inc. 24,300 $ 1,206 PepsiCo, Inc. 1,800 118 Procter & Gamble Co. 11,030 682 Southern Co. 14,900 501 Spectra Energy Corp. 12,900 329 US Bancorp 20,000 599 Wachovia Corp. 11,475 542 Wells Fargo & Co. 31,890 1,077 ------------ TOTAL COMMON STOCKS 11,827 ------------ INVESTMENT COMPANIES (8.7%) American Income Fund, Inc. 135,400 1,064 BlackRock Income Opportunity Trust, Inc. 225,000 2,255 BlackRock Income Trust, Inc. 108,600 634 Eaton Vance Tax-Advantaged Dividend Income Fund 23,600 640 ING Prime Rate Trust 160,400 1,113 MFS Government Markets Income Trust 217,400 1,463 MFS Intermediate Income Trust 49,000 298 Pioneer Interest Shares 90,700 1,067 Rivus Bond Fund 127,000 2,195 Templeton Global Income Fund 61,374 579 Van Kampen Bond Fund 64,800 1,074 Van Kampen Senior Income Trust 152,000 1,213 ------------ TOTAL INVESTMENT COMPANIES 13,595 ------------ PREFERRED STOCKS (31.7%) AAG Holding Co., Inc., 7.25% 20,000 495 Abbey National PLC, Series C, 7.38% 60,600 1,519 Aegon NV (a), Series 1, 6.24% 20,000 500 AMBAC Financial Group, Inc., 5.95% 54,100 1,191 BAC Capital Trust I, 7.00% 64,500 1,606 BAC Capital Trust III, 7.00% 48,600 1,206 Barclays Bank PLC, Series 2, 6.63% 40,000 996 BBC Capital Trust II, 8.50% 31,000 771 Bear Stearns Capital Trust III, 7.80% 58,900 1,467 Citigroup Capital VII, 7.13% 124,925 3,142 Corporate-Backed Trust Certificates (CBTCS), Series AIG, 6.13% 60,000 1,352 Corporate-Backed Trust Certificates (CBTCS), Series HSBC, 6.25% 33,500 765 CORTS Trust for Sherwin-Williams, Series III, 7.25% 17,600 427 CORTS Trust for Verizon Global Funding Corp., 7.38% 54,500 1,367 Duke Realty Corp., Series L, 6.60% 30,000 694 Duke Realty Corp., Series M, 6.95% 10,000 246 Entergy Arkansas, Inc., 6.00% 80,600 1,925 Entergy Mississippi, Inc., 6.00% 29,300 702 Financial Security Assurance Holdings, Ltd., 6.25% 90,750 2,059 First Tennessee Bank NA, 6.21% (a) (b) 1,000 1,046 Freddie Mac, Series F, 5.00% 20,000 840 CONTINUED SHARES VALUE ------------ ------------ PREFERRED STOCKS, CONTINUED Freddie Mac, Series H, 5.10% 10,000 $ 420 Freddie Mac, Series R, 5.70% 25,500 1,200 General Electric Capital Corp., 6.10% 19,000 456 General Electric Capital Corp., 6.63% 59,000 1,465 Goldman Sachs Group, Inc. (The), Series A, 6.11% (a) 40,000 1,003 Harris Preferred Capital Corp., Series A, 7.38% 31,800 796 HRPT Properties Trust, Series B, 8.75% 22,900 570 HSBC Finance Corp. 6.88% 32,800 809 HSBC USA, Inc., Series G, 6.11% (a) 60,000 1,527 Huntington Preferred Capital, Inc., 7.88% 15,507 433 ING Groep NV, 7.20% 41,200 1,040 Kimco Realty Corp., Series F, 6.65% 39,994 955 Lehman Brothers Holdings, Inc., Series G, 6.07% (a) 50,000 1,247 MBNA Capital, Series D, 8.13% 37,800 953 Merrill Lynch & Co., Inc., Series G, 6.11% (a) 80,000 2,008 Merrill Lynch Preferred Capital Trust III, 7.00% 9,800 244 MetLife, Inc., Series A, 6.36% (a) 40,000 1,022 Public Storage, Series M, 6.63% 40,000 918 Public Storage, Series L, 6.75% 30,000 694 Public Storage, Series N, 7.00% 40,000 988 Realty Income Corp., Series E, 6.75% 40,000 950 Source Capital Corp., 2.40% 35,600 1,177 US Bancorp, Series B, 5.96% (a) 20,000 519 USB Capital XII, 6.30% 40,000 912 Wachovia Corp., Series A, 7.25% 79,000 2,018 Wells Fargo Capital VII, 5.85% 33,500 744 ------------ TOTAL PREFERRED STOCKS 49,384 ------------ REAL ESTATE INVESTMENT TRUSTS (3.8%) AMB Property Corp. 4,050 216 Developers Diversified Realty Corp. 6,750 324 Duke Realty Corp. 8,500 278 Equity Residential 8,750 348 Health Care Property Investors, Inc. 20,150 549 Kimco Realty Corp. 22,250 830 Prologis 8,025 457 Public Storage, A Shares 15,000 386 Simon Property Group, Inc. 9,204 796 Vornado Realty Trust 8,500 910 Weingarten Realty Investors 20,625 755 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS 5,849 ------------ CONTINUED 82 STRATEGIC INCOME SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (c) (8.5%) Fifth Third Institutional Money Market Fund 13,174,318 $ 13,174 ------------ TOTAL INVESTMENTS IN AFFILIATES 13,174 ------------ TOTAL INVESTMENTS (COST $154,169) - 99.7% 155,179 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 509 ------------ NET ASSETS - 100.0% $ 155,688 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund. (d) Perpetual Maturity. Callable any time after first call date. Maturity date is next call date. The following abbreviation is used in the Schedule of Portfolio Investments: CBTCS - Convertible Bond Transferable Custodial Security SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. DIVIDEND GROWTH SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (98.9%) 3M Co. 2,511 $ 223 Abbott Laboratories 8,017 406 Accenture, Ltd., Class A 7,104 299 Altria Group, Inc. 9,283 617 AMBAC Financial Group, Inc. 5,301 356 American International Group, Inc. 4,202 270 Anheuser-Busch Cos., Inc. 4,641 226 Apache Corp. 2,948 238 AT&T, Inc. 9,718 381 Bank of America Corp. 5,762 273 Becton Dickinson & Co. 6,032 461 Cardinal Health, Inc. 3,779 248 Celgene Corp. * 5,203 315 Charles Schwab Corp. (The) 18,039 363 Chevron Corp. 3,130 267 Cisco Systems, Inc. * 12,467 360 Citigroup, Inc. 12,359 576 CME Group, Inc. 425 242 Coca-Cola Co. (The) 6,882 359 Dentsply International, Inc. 8,211 300 Diamond Offshore Drilling, Inc. 2,798 289 Ecolab, Inc. 6,086 256 EMC Corp. * 18,161 336 Emerson Electric Co. 11,878 559 Exxon Mobil Corp. 13,395 1,140 Factset Research Systems, Inc. 3,864 255 Franklin Resources, Inc. 1,884 240 General Dynamics Corp. 6,110 480 General Electric Co. 23,161 898 Gilead Sciences, Inc. * 6,086 227 Illinois Tool Works, Inc. 4,448 245 International Business Machines Corp. 3,293 364 Johnson & Johnson 8,099 490 Kellogg Co. 9,529 494 Kohl's Corp. * 3,719 226 Kraft Foods, Inc., Class A 3,534 116 McDonald's Corp. 4,705 225 Merrill Lynch & Co., Inc. 2,787 207 Microchip Technology, Inc. 8,737 317 Microsoft Corp. 15,707 455 MSC Industrial Direct Co., Class A 3,436 173 Nike, Inc., Class B 4,565 258 Nordstrom, Inc. 5,200 245 Novartis AG ADR 5,154 278 Paychex, Inc. 6,279 260 PepsiCo, Inc. 11,770 772 Praxair, Inc. 8,452 648 Procter & Gamble Co. 12,827 793 Prudential Financial, Inc. 4,636 411 Qualcomm, Inc. 5,595 233 Roper Industries, Inc. 4,319 259 State Street Corp. 8,491 569 CONTINUED 83 DIVIDEND GROWTH SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS, CONTINUED Stryker Corp. 3,202 $ 200 Target Corp. 7,940 481 Texas Instruments, Inc. 9,761 343 United Technologies Corp. 10,111 738 VCA Antech, Inc. * 6,409 252 VF Corp. 2,878 247 Wachovia Corp. 8,935 422 Weatherford International, Ltd. * 4,417 244 Wells Fargo & Co. 15,894 537 XTO Energy, Inc. 5,726 312 ------------ TOTAL COMMON STOCKS 23,274 ------------ INVESTMENTS IN AFFILIATES (a) (1.6%) Fifth Third Institutional Money Market Fund 374,073 374 ------------ TOTAL INVESTMENTS IN AFFILIATES 374 ------------ TOTAL INVESTMENTS (COST $20,701) - 100.5% 23,648 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (110) ------------ NET ASSETS - 100.0% $ 23,538 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. The following abbreviation is used in the Schedule of Portfolio Investments: ADR - American Depositary Receipt SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. TECHNOLOGY SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ COMMON STOCKS (98.4%) Accenture Ltd., Class A 30,000 $ 1,264 Advanced Energy Industries, Inc. * 25,000 443 Amkor Technology, Inc. * 40,000 494 Apple, Inc. * 7,500 988 Arris Group, Inc. * 40,000 593 ASML Holding NV * 20,000 591 Atmel Corp. * 125,000 674 Brocade Communications Systems, Inc. * 62,500 440 Business Objects SA ADR * 43,400 1,953 Cadence Design Systems, Inc. * 50,000 1,070 Cisco Systems, Inc. * 50,000 1,446 CommScope, Inc. * 20,000 1,089 Compuware Corp. * 100,000 933 Convergys Corp. * 32,500 619 eBay, Inc. * 42,000 1,361 Exar Corp. * 35,000 495 Expedia, Inc. * 25,000 665 Gmarket, Inc. ADR * 20,000 434 IAC/InterActiveCorp * 54,350 1,562 Infineon Technologies AG ADR * 100,000 1,637 International Business Machines Corp. 16,125 1,784 Intersil Corp., Class A 20,000 585 Kla-Tencor Corp. 20,000 1,136 Kulicke & Soffa Industries, Inc. * 50,000 468 Logitech International SA * 37,500 1,001 McAfee, Inc. * 40,000 1,434 MEMC Electronic Materials, Inc. * 12,000 736 MicroStrategy, Inc., Class A * 8,475 620 MKS Instruments, Inc. * 17,500 397 ON Semiconductor Corp. * 50,000 591 Partner Communications ADR 20,000 328 Polycom, Inc. * 35,000 1,084 priceline.com, Inc. * 17,100 1,091 Sybase, Inc. * 37,500 890 Synopsys, Inc. * 22,500 550 Taiwan Semiconductor Manufacturing Co., Ltd. ADR 175,874 1,785 Teradyne, Inc. * 60,000 941 THQ, Inc. * 15,000 431 Valueclick, Inc. * 25,000 535 Western Union Co. (The) 40,000 798 Xerox Corp. * 45,000 786 Xilinx, Inc. 38,000 950 Zoran Corp. * 35,000 660 ------------ TOTAL COMMON STOCKS 38,332 ------------ CONTINUED 84 TECHNOLOGY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (a) (1.8%) Fifth Third Institutional Money Market Fund 707,136 $ 707 ------------ TOTAL INVESTMENTS IN AFFILIATES 707 ------------ TOTAL INVESTMENTS (COST $37,726) - 100.2% 39,039 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (89) ------------ NET ASSETS - 100.0% $ 38,950 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. The following abbreviation is used in the Schedule of Portfolio Investments: ADR - American Depositary Receipt SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS (c) (94.6%) AUSTRALIA (4.3%) AGL Energy, Ltd. 5,010 $ 66 Alinta, Ltd. 2,893 36 Alumina, Ltd. 56,276 348 Amcor, Ltd. 43,697 254 AMP, Ltd. 29,822 254 Ansell, Ltd. 1,145 11 Asciano Group * 4,869 40 Australia & New Zealand Banking Group, Ltd. 13,220 316 BHP Billiton, Ltd. 173,996 5,539 BlueScope Steel, Ltd. 37,688 348 Boral, Ltd. 28,950 190 Brambles, Ltd. * 24,222 227 Caltex Australia, Ltd. 19,340 407 Coca-Cola Amatil, Ltd. 19,435 150 Coles Group, Ltd. 10,427 128 Commonwealth Bank of Australia 27,683 1,273 CSL, Ltd. 3,164 237 CSR, Ltd. 49,853 141 Fairfax Media, Ltd. 8,771 36 Foster's Group, Ltd. 43,616 218 Insurance Australia Group, Ltd. 41,347 200 Leighton Holdings, Ltd. 2,707 90 Lend Lease Corp., Ltd. 4,578 72 Macquarie Bank, Ltd. 5,111 355 Macquarie Infrastructure Group 78,876 219 National Australia Bank, Ltd. 37,106 1,206 Newcrest Mining, Ltd. 16,118 339 OneSteel, Ltd. 29,255 165 Orica, Ltd. 13,895 332 Origin Energy, Ltd. 138,561 1,151 PaperlinX, Ltd. 23,747 64 QBE Insurance Group, Ltd. 16,043 408 Rinker Group, Ltd. 49,029 567 Rio Tinto, Ltd. 15,093 1,183 Santos, Ltd. 101,754 1,145 Sonic Healthcare, Ltd. 1,643 21 Stockland 469 3 Suncorp-Metway, Ltd. 5,353 88 Symbion Health, Ltd. 9,701 34 TABCORP Holdings, Ltd. 10,500 145 Telstra Corp., Ltd. 51,965 202 Toll Holdings, Ltd. 4,869 58 Transurban Group 11,728 71 Wesfarmers, Ltd. 8,542 281 Westpac Banking Corp. 20,245 449 Woodside Petroleum, Ltd. 56,880 2,071 Woolworths, Ltd. 27,057 625 ------------ 21,763 ------------ AUSTRIA (1.2%) Andritz AG 1,904 130 CONTINUED 85 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED AUSTRIA, CONTINUED Bank Austria Creditanstalt AG 2,595 $ 511 Boehler-Uddeholm AG 2,583 257 Erste Bank der Oesterreichischen Sparkassen AG 20,007 1,507 Flughafen Wien AG 714 75 IMMOFINANZ AG * 20,143 253 Mayr Melnhof Karton AG 582 64 OMV AG 11,547 718 Raiffeisen International Bank Holding AG 6,469 985 Telekom Austria AG 23,654 575 Verbund - Oesterreichische Elektrizitaetswirtschafts AG, Class A 5,416 265 Voestalpine AG 5,236 434 Wiener Staedtische Versicherung AG 1,229 87 Wienerberger AG 4,140 287 ------------ 6,148 ------------ BELGIUM (0.8%) AGFA-Gevaert NV 1,931 41 Bekaert SA 325 46 Belgacom SA 3,263 131 Delhaize Group 1,553 145 Dexia SA 25,883 739 Fortis 27,062 1,075 Groupe Bruxelles Lambert SA 1,184 144 InBev NV 3,790 304 KBC Groep NV 3,615 470 Solvay SA 2,133 324 UCB SA 3,644 204 Umicore 908 205 ------------ 3,828 ------------ BRAZIL (0.5%) Arcelor Brasil SA 2,690 77 Cia de Bebidas das Americas 112,000 79 Cia de Concessoes Rodoviarias 11,270 204 Cia Siderurgica Nacional SA 2,200 127 Cyrela Brazil Realty SA 21,300 249 Empresa Brasileira de Aeronautica SA 12,200 132 Gol Linhas Aereas Inteligentes SA ADR 23,500 586 Lojas Renner SA 14,500 273 Souza Cruz SA 2,900 67 Unibanco - Uniao de Bancos Brasileiros SA GDR 7,100 828 ------------ 2,622 ------------ CHINA (2.2%) Air China, Ltd., H Shares 191,000 170 Aluminum Corp. of China, Ltd., H Shares 194,000 390 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED CHINA, CONTINUED Angang Steel Co., Ltd. 6,000 $ 17 Anhui Conch Cement Co., Ltd., H Shares 2,000 13 Anhui Expressway Co., H Shares 221,893 197 Bank of China, Ltd., H Shares 1,041,000 545 Bank of Communications Co. Ltd., H Shares 685,000 746 China Communications Construction Co., Ltd., H Shares 192,000 432 China Construction Bank Corp., H Shares 2,121,391 1,580 China COSCO Holdings Co., Ltd., H Shares 171,000 301 China Life Insurance Co., Ltd., H Shares 343,000 1,452 China National Building Material Co., Ltd., H Shares 7,800 16 China Petroleum & Chemical Corp., H Shares 798,000 836 China Shenhua Energy Co., Ltd., H Shares 163,000 641 China Shipping Development Co., Ltd., H Shares 77,947 202 China Telecom Corp., Ltd., H Shares 758,000 440 Datang International Power Generation Co., Ltd., H Shares 172,000 148 Dongfeng Motor Group Co., Ltd., H Shares 115,542 67 Guangzhou R&F Properties Co., Ltd., H Shares 47,800 173 Harbin Power Equipment, H Shares 6,000 10 Huaneng Power International, Inc., H Shares 192,000 218 Jiangxi Copper Co., Ltd., H Shares 68,000 128 PetroChina Co., Ltd. 758,000 1,122 Ping An Insurance Group Co. of China, Ltd., H Shares 62,500 529 Shanghai Electric Group Co., Ltd., H Shares 50,000 24 Sichuan Expressway Co., Ltd., H Shares 308,000 103 Sinopec Shanghai Petrochemical Co., Ltd., H Shares 22,000 14 Tianjin Capital Environmental Protection 137,000 82 Yanzhou Co.al Mining Co., Ltd., H Shares 104,000 188 Zhejiang Expressway Co., Ltd., H Shares 34,000 39 Zijin Mining Group Co., Ltd., H Shares 183,500 141 ------------ 10,964 ------------ CONTINUED 86 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED COLOMBIA (0.1%) BanColombia SA ADR 13,500 $ 480 ------------ CYPRUS (0.1%) Bank of Cyprus Public Co., Ltd. 20,900 365 ------------ DENMARK (0.9%) AP Moeller - Maersk A/S, Series B 14 185 Danisco A/S 1,300 97 Danske Bank A/S 32,987 1,388 DSV A/S 20,000 447 GN Store Nord * 18,100 214 Novo Nordisk A/S, Series B 10,730 1,130 Novozymes A/S, B Shares 2,400 285 Vestas Wind Systems A/S * 7,950 527 William Demant Holding * 1,400 139 ------------ 4,412 ------------ FINLAND (2.0%) Amer Sports Oyj, A Shares 3,050 75 Cargotec Corp., B Shares 1,677 87 Elisa Oyj 6,350 180 Fortum Oyj 18,689 602 Kesko Oyj, B Shares 4,303 229 Kone Oyj, B Shares 3,494 234 Konecranes Oyj 2,400 97 Metso Oyj 5,216 333 Neste Oil Oyj 5,441 195 Nokia Oyj 174,085 4,980 Nokian Renkaat Oyj 4,400 145 OKO Bank PLC, Series A 3,000 52 Orion Oyj, Class B 3,600 95 Outokumpu Oyj 9,796 306 Rautaruukki Oyj 3,858 254 Sampo Oyj, A Shares 14,156 425 Sanoma-WSOY Oyj 2,750 88 Stora Enso Oyj, R Shares 25,479 435 Tietoenator Oyj 5,785 142 UPM-Kymmene Oyj 22,207 494 Uponor Oyj 2,382 87 Wartsila Oyj, B Shares 2,711 190 YIT Oyj 5,350 171 ------------ 9,896 ------------ FRANCE (5.8%) Accor SA 7,341 628 Air Liquide 5,464 705 Alcatel-Lucent 39,308 459 Alstom 7,123 1,281 Arkema * 1,125 73 Atos Origin SA * 921 55 AXA SA 46,903 1,825 BNP Paribas 27,060 2,973 Bouygues 6,978 557 Business Objects SA * 1,902 86 Cap Gemini SA 2,923 191 Carrefour SA 16,487 1,176 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED FRANCE, CONTINUED Casino Guichard Perrachon SA 1,497 $ 147 Cie de Saint-Gobain 7,255 808 Cie Generale d'Optique Essilor International SA 2,962 180 CNP Assurances 1,580 207 Compagnie Generale des Etablissements Michelin 2,033 266 Credit Agricole SA 11,360 434 Dassault Systemes SA 1,488 89 France Telecom SA 36,447 978 Gecina SA 1,068 174 Groupe Danone 13,446 972 Hermes International 683 69 Imerys SA 835 82 Klepierre 901 140 Lafarge SA 4,625 780 Lagardere SCA 2,490 197 L'Oreal SA 5,856 669 LVMH Moet Hennessy Louis Vuitton SA 4,336 485 Neopost SA 1,110 162 Peugeot SA 2,315 194 PPR 1,130 198 Publicis Groupe 1,826 79 Renault SA 2,384 343 Safran SA 2,700 67 Sanofi-Aventis 20,101 1,680 Schneider Electric SA 5,207 697 Societe BIC SA 949 69 Societe Generale 10,643 1,822 Societe Television Francaise 1 2,248 75 Sodexho Alliance SA 2,906 191 Suez SA 11,133 584 Technip SA 1,063 86 Thales SA 2,335 134 Thomson 4,158 68 Total SA 54,335 4,297 Unibail-Rodamco 2,388 568 Veolia Environnement 2,534 188 Vinci SA 6,652 475 Vivendi 15,542 660 Zodiac SA 1,082 77 ------------ 29,400 ------------ GERMANY (9.0%) Adidas AG 10,543 642 Allianz SE 15,816 3,328 Altana AG 3,098 73 Arcandor AG * 3,816 117 BASF AG 23,204 2,984 Bayer AG 22,169 1,563 Beiersdorf AG 2,606 181 Celesio AG 3,977 238 Commerzbank AG 30,363 1,292 Continental AG 6,536 936 DaimlerChrysler AG 40,459 3,636 CONTINUED 87 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED GERMANY, CONTINUED Deutsche Bank AG 19,492 $ 2,643 Deutsche Boerse AG 7,491 862 Deutsche Lufthansa AG 11,473 321 Deutsche Post AG 36,055 1,051 Deutsche Postbank AG 2,660 205 Deutsche Telekom AG 143,808 2,461 E.ON AG 31,046 4,897 Fresenius Medical Care AG & Co. KGaA 9,576 450 Heidelberger Druckmaschinen AG 2,550 123 Hochtief AG 2,806 283 Hypo Real Estate Holding AG 6,833 417 Infineon Technologies AG * 26,979 445 Linde AG 3,377 397 MAN AG 7,985 1,153 Merck KGaA 2,109 263 Metro AG 7,206 558 Muenchener Rueckversicherungs AG 7,971 1,368 Puma AG Rudolf Dassler Sport 604 242 RWE AG 20,783 2,195 SAP AG 44,624 2,389 Siemens AG 40,403 5,077 Suedzucker AG 3,907 75 ThyssenKrupp AG 18,328 1,011 TUI AG * 9,960 281 Volkswagen AG 7,791 1,402 ------------ 45,559 ------------ GREAT BRITAIN (14.7%) 3i Group PLC 1,863 40 Aegis Group PLC 58,974 150 Amec PLC 11,212 143 Anglo American PLC 66,432 3,812 ARM Holdings PLC 79,243 235 Arriva PLC 9,525 151 AstraZeneca PLC 36,732 1,903 Aviva PLC 89,141 1,235 BAE Systems PLC 101,687 859 Balfour Beatty PLC 17,536 151 Barclays PLC 171,754 2,410 Barratt Developments PLC 5,762 109 BBA Aviation PLC 21,830 107 Bellway PLC 5,953 148 Berkeley Group Holdings PLC * 3,169 105 BG Group PLC 109,658 1,790 BHP Billiton PLC 115,626 3,408 Biffa PLC 12,728 64 BP PLC 526,752 6,115 British Airways PLC * 19,865 160 British American Tobacco PLC 38,460 1,242 British Land Co. PLC REIT 11,305 281 British Sky Broadcasting Group PLC 21,961 295 BT Group PLC 237,193 1,510 Bunzl PLC 19,009 249 Burberry Group PLC 6,691 85 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED GREAT BRITAIN, CONTINUED Cadbury Schweppes PLC 64,943 $ 808 Capita Group PLC 3,054 44 Carnival PLC 6,266 273 Centrica PLC 74,721 540 Close Brothers Group PLC 665 11 Cobham PLC 59,588 230 Compass Group PLC 75,551 509 CSR PLC * 4,653 67 Daily Mail & General Trust, Class A 7,326 106 Diageo PLC 120,213 2,449 Drax Group PLC 5,134 71 DSG International PLC 44,929 141 Electrocomponents PLC 18,877 95 Emap PLC 5,350 91 EMI Group PLC 20,249 104 Enterprise Inns PLC 25,226 344 Fiberweb PLC 6,806 18 Firstgroup PLC 19,797 252 FKI PLC 18,059 40 Friends Provident PLC 68,182 255 G4S PLC 5,825 25 GKN PLC 17,809 138 GlaxoSmithKline PLC 132,636 3,383 Hammerson PLC REIT 6,202 149 Hanson PLC 26,488 584 Hays PLC 35,288 114 HBOS PLC 99,849 1,956 Home Retail Group PLC 18,049 149 HSBC Holdings PLC 151,331 2,810 ICAP PLC 2,480 24 IMI PLC 16,407 194 Imperial Chemical Industries PLC 40,715 514 Imperial Tobacco Group PLC 15,976 701 Intercontinental Hotels Group PLC 12,382 282 International Personal Finance PLC * 6,644 30 International Power PLC 8,683 72 Invensys PLC * 20,447 154 Invesco PLC 3,375 42 ITV PLC 79,548 164 J Sainsbury PLC 34,830 401 Johnson Matthey PLC 5,631 192 Kelda Group PLC 8,756 149 Kesa Electricals PLC 19,234 125 Kingfisher PLC 27,117 117 Ladbrokes PLC 30,314 250 Land Securities Group PLC REIT 10,090 342 Legal & General Group PLC 226,222 641 Liberty International PLC REIT 6,072 126 Lloyds TSB Group PLC 174,862 1,961 LogicaCMG PLC 32,072 99 London Stock Exchange Group PLC 4,397 119 Lonmin PLC 1,309 92 Man Group PLC 15,797 180 Marks & Spencer Group PLC 32,753 416 Meggitt PLC 18,990 117 CONTINUED 88 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED GREAT BRITAIN, CONTINUED Michael Page International PLC 8,240 $ 90 Misys PLC 21,707 104 Mondi PLC * 18,280 160 National Express Group PLC 7,258 167 National Grid PLC 76,391 1,082 Next PLC 5,110 194 Northern Rock PLC 3,608 59 Pearson PLC 20,676 332 Persimmon PLC 6,505 152 Provident Financial PLC 3,322 61 Prudential PLC 64,153 877 Punch Taverns PLC 8,807 204 Rank Group PLC 12,576 42 Reckitt Benckiser PLC 18,393 985 Reed Elsevier PLC 24,992 309 Rentokil Initial PLC 9,250 29 Resolution PLC 1,014 14 Reuters Group PLC 29,308 366 Rexam PLC 17,464 177 Rio Tinto PLC 50,900 3,673 Rolls-Royce Group PLC * 49,171 503 Royal Bank of Scotland Group PLC 229,922 2,751 Sage Group PLC 44,324 205 Schroders PLC 635 16 Scottish & Southern Energy PLC 26,089 759 Segro PLC REIT 9,908 108 Serco Group PLC 2,367 21 Severn Trent PLC 7,247 188 Signet Group PLC 104,117 205 Smith & Nephew PLC 13,962 166 Smiths Group PLC 11,208 237 Stagecoach Group PLC 26,336 111 Tate & Lyle PLC 22,214 256 Taylor Wimpey PLC 25,562 169 Tesco PLC 200,815 1,649 Tomkins PLC 31,738 151 Unilever PLC 48,168 1,499 United Business Media PLC 6,247 95 United Utilities PLC 4,667 63 Vodafone Group PLC 1,518,018 4,606 Whitbread PLC 6,948 233 William Hill PLC 21,058 255 Wolseley PLC 18,138 395 WPP Group PLC 19,351 277 Yell Group PLC 14,928 139 ------------ 74,151 ------------ GREECE (0.4%) Alpha Bank AE 14,112 478 EFG Eurobank Ergasias SA 8,680 311 National Bank of Greece SA 12,654 747 OPAP SA 7,500 259 Titan Cement Co. SA 2,300 118 ------------ 1,913 ------------ CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED HONG KONG (1.4%) ASM Pacific Technology 500 $ 5 Bank of East Asia, Ltd. 16,765 100 BOC Hong Kong Holdings, Ltd. 39,500 102 Cathay Pacific Airways, Ltd. 10,000 26 Chaoda Modern Agriculture 84,000 62 Cheung Kong Holdings, Ltd. 16,000 224 Cheung Kong Infrastructure Holdings, Ltd. 4,000 14 China Infrastructure Machinery Holdings, Ltd. 133,000 297 China Mobile, Ltd. 128,500 1,480 China Resources Enterprise 50,000 200 China Travel International Investment 370,000 245 China Water Affairs Group, Ltd. * 1,032,109 678 CLP Holdings, Ltd. 19,186 129 COSCO Pacific, Ltd. 90,000 237 Esprit Holdings, Ltd. 11,700 158 Guangdong Investment, Ltd. 882,485 575 Hang Lung Properties, Ltd. 20,000 73 Hang Seng Bank, Ltd. 8,300 131 Henderson Land Development Co., Ltd. 8,000 57 Hong Kong & China Gas Co. 47,702 110 Hong Kong Electric Holdings 15,500 77 Hong Kong Exchanges and Clearing, Ltd. 11,000 180 Hopewell Highway Infrastructure, Ltd. 206,000 197 Hopewell Holdings 6,000 26 Hutchison Telecommunications International, Ltd. 14,000 17 Hutchison Whampoa, Ltd. 23,039 245 Hysan Development Co., Ltd. 6,132 16 Johnson Electric Holdings, Ltd. 15,520 8 Kerry Properties, Ltd. 4,315 31 Li & Fung, Ltd. 97,228 339 Li Ning Co., Ltd. 46,000 109 Link (The) REIT 18,000 38 MTR Corp. 15,612 39 New World Development, Ltd. 26,225 63 NWS Holdings, Ltd. 77,801 186 PCCW, Ltd. 36,082 22 Prime Success International Group, Ltd. 159,700 133 Shangri-La Asia, Ltd. 11,110 26 Sino Land Co. 9,040 20 Sun Hung Kai Properties, Ltd. 14,136 179 Swire Pacific, Ltd., A Shares 10,500 119 Techtronic Industries Co. 9,500 11 Television Broadcasts, Ltd. 3,000 20 Wharf Holdings, Ltd. 12,629 52 Yue Yuen Industrial Holdings, Ltd. 4,500 14 ------------ 7,070 ------------ CONTINUED 89 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED INDIA (0.7%) Ambuja Cements, Ltd. GDR* 34,400 $ 108 Bajaj Auto, Ltd. GDR 1,850 106 Dr Reddys Laboratories, Ltd. ADR 4,100 64 GAIL India, Ltd. GDR 2,500 124 Grasim Industries, Ltd. GDR (a) 1,900 115 HDFC Bank, Ltd. ADR 2,700 234 Hindalco Industries, Ltd. GDR (a) 20,000 89 ICICI Bank, Ltd. ADR 17,700 784 Infosys Technologies, Ltd. ADR 12,200 605 ITC, Ltd. GDR 67,800 278 Larsen & Toubro, Ltd. GDR 4,200 267 Ranbaxy Laboratories, Ltd. GDR 6,300 60 Reliance Energy, Ltd. GDR 1,000 59 Satyam Computer Services, Ltd. ADR 7,500 200 State Bank of India, Ltd. GDR 2,700 263 Tata Motors, Ltd. ADR 8,100 139 Wipro, Ltd. ADR 12,100 177 ------------ 3,672 ------------ INDONESIA (1.1%) Bank Rakyat Indonesia 682,000 457 Perusahaan Gas Negara PT 75,000 74 PT Aneka Tambang Tbk 147,500 42 PT Astra International Tbk 213,500 427 PT Bank Central Asia Tbk 1,438,500 966 PT Bank Danamon Indonesia Tbk 73,000 66 PT Bank Mandiri Persero Tbk 987,000 371 PT Bumi Resources Tbk 729,500 210 PT Gudang Garam Tbk 32,500 35 PT Indocement Tunggal Prakarsa Tbk 44,500 31 PT Indofood Sukses Makmur Tbk 222,000 47 PT Indosat Tbk 106,500 84 PT International Nickel Indonesia Tbk 9,000 55 PT Kalbe Farma Tbk 211,000 34 PT Mulia Industrindo Tbk * 19,000 --# PT Semen Gresik Persero Tbk 9,000 51 PT Telekomunikasi Indonesia Tbk 1,256,000 1,509 PT Unilever Indonesia Tbk 72,500 58 PT United Tractors Tbk 850,500 791 ------------ 5,308 ------------ IRELAND (0.1%) Depfa Bank PLC 16,076 327 Experian Group, Ltd. 16,183 186 ------------ 513 ------------ ITALY (0.9%) Assicurazioni Generali SpA 28,371 1,111 Capitalia SpA 14,898 140 Intesa Sanpaolo SpA 135,197 1,017 Mediobanca SpA 2,293 48 UniCredito Italiano SpA 208,894 1,763 Unione di Banche Italiane SCPA 8,539 210 ------------ 4,289 ------------ CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED JAPAN (24.2%) 77 Bankm, Ltd. (The) 16,000 $ 106 Acom Co., Ltd. 1,030 37 Advantest Corp. 9,700 378 Aeon Co., Ltd. 25,500 409 Aeon Credit Service Co., Ltd. 900 13 Aiful Corp. 950 24 Ajinomoto Co., Inc. 30,400 370 Alps Electric Co., Ltd. 7,300 72 Amada Co., Ltd. 15,000 176 Asahi Breweries, Ltd. 19,700 280 Asahi Glass Co., Ltd. 57,800 774 Asahi Kasei Corp. 57,000 407 Asatsu-DK, Inc. 1,200 38 Astellas Pharma, Inc. 21,400 878 Bank of Kyoto, Ltd. (The) 16,000 216 Bank of Yokohama, Ltd. (The) 80,000 558 Benesse Corp. 2,500 78 Bridgestone Corp. 44,400 937 Canon, Inc. 44,600 2,370 Casio Computer Co., Ltd. 16,100 245 Central Japan Railway Co. 62 644 Chiba Bank, Ltd. (The) 50,000 423 Chiyoda Corp. 9,000 178 Chubu Electric Power Co., Inc. 22,900 580 Chugai Pharmaceutical Co., Ltd. 11,904 206 Citizen Holdings Co., Ltd. 15,900 147 COMSYS Holdings Corp. 8,000 89 Credit Saison Co., Ltd. 2,400 59 CSK Holdings Corp. 3,300 107 Dai Nippon Printing Co., Ltd. 20,600 305 Daicel Chemical Industries, Ltd. 8,000 54 Daiichi Sankyo Co., Ltd. 29,300 820 Daikin Industries, Ltd. 8,600 335 Daimaru, Inc. 16,000 182 Dainippon Ink and Chemicals, Inc. 30,000 118 Daito Trust Construction Co., Ltd. 7,200 357 Daiwa House Industry Co., Ltd. 36,600 481 Daiwa Securities Group, Inc. 55,000 583 Denki Kagaku Kogyo K K 18,000 90 Denso Corp. 32,450 1,222 Dentsu, Inc. 22 56 Dowa Holdings Co., Ltd. 27,000 323 East Japan Railway Co. 179 1,329 Ebara Corp. 15,800 76 Eisai Co., Ltd. 9,902 418 FamilyMart Co., Ltd. 2,700 70 Fanuc, Ltd. 9,100 988 Fast Retailing Co., Ltd. 3,600 204 Fuji Electric Holdings Co., Ltd. 10,000 42 FUJI SOFT, Inc. 1,800 41 Fuji Television Network, Inc. 29 59 FUJIFILM Holdings Corp. 21,400 933 Fujikura, Ltd. 14,000 86 Fujitsu, Ltd. 80,000 530 CONTINUED 90 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Fukuoka Financial Group, Inc. * 33,000 $ 211 Furukawa Electric Co., Ltd. 30,800 171 Hankyu Department Stores 4,000 39 Hirose Electric Co., Ltd. 1,300 161 Hitachi Chemical Co., Ltd. 1,000 21 Hitachi Construction Machinery Co., Ltd. 1,200 48 Hitachi, Ltd. 145,000 1,037 Hokkaido Electric Power Co., Inc. 6,700 138 Hokuhoku Financial Group, Inc. 84,000 265 Honda Motor Co., Ltd. 90,551 3,273 Hoya Corp. 17,900 570 Ibiden Co., Ltd. 5,100 373 Ihi Corp. 54,000 207 Index Holdings 53 18 Inpex Holdings, Inc. 20 202 Isetan Co., Ltd. 10,100 161 Itochu Corp. 68,000 854 Itochu Techno-Solutions Corp. 1,400 51 Japan Airlines Corp. * 43,000 84 Japan Real Estate Investment Corp. REIT 21 239 Japan Retail Fund Investment Corp. REIT 19 155 Japan Tobacco, Inc. 165 844 JFE Holdings, Inc. 17,300 1,188 JGC Corp. 13,000 269 Joyo Bank, Ltd. (The) 56,000 326 JS Group Corp. 12,100 231 JSR Corp. 8,100 204 Kajima Corp. 62,400 256 Kaneka Corp. 11,000 90 Kansai Electric Power Co., Inc. (The) 31,900 708 Kao Corp. 27,000 744 Kawasaki Heavy Industries, Ltd. 55,000 244 Kawasaki Kisen Kaisha, Ltd. 4,000 55 Keihin Electric Express Railway Co., Ltd. 12,000 73 Keio Corp. 8,000 50 Keyence Corp. 1,600 344 Kikkoman Corp. 6,000 81 Kintetsu Corp. 75,230 224 Kirin Holdings Co., Ltd. 41,400 587 Kobe Steel, Ltd. 85,000 331 Kokuyo Co., Ltd. 2,900 32 Komatsu, Ltd. 52,300 1,661 Komori Corp. 1,000 23 Konami Corp. 4,600 104 Konica Minolta Holdings, Inc. 20,000 296 Kubota Corp. 72,000 601 Kuraray Co., Ltd. 18,500 213 Kurita Water Industries, Ltd. 3,200 101 Kyocera Corp. 7,100 686 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Kyowa Hakko Kogyo Co., Ltd. 14,000 $ 141 Kyushu Electric Power Co., Inc. 14,300 340 Lawson, Inc. 2,400 83 Leopalace21 Corp. 5,600 179 Mabuchi Motor Co., Ltd. 1,200 73 Marubeni Corp. 65,800 634 Marui Co., Ltd. 25,400 287 Matsui Securities Co., Ltd. 100 1 Matsushita Electric Industrial Co., Ltd. 93,000 1,697 Matsushita Electric Works, Ltd. 15,000 189 Meiji Seika Kaisha, Ltd. 6,000 27 Meitec Corp. 1,200 34 Millea Holdings, Inc. 32,365 1,282 Minebea Co., Ltd. 19,000 103 Mitsubishi Chemical Holdings Corp. 41,500 377 Mitsubishi Corp. 58,800 1,737 Mitsubishi Electric Corp. 100,800 1,080 Mitsubishi Estate Co., Ltd. 53,000 1,347 Mitsubishi Heavy Industries, Ltd. 172,000 1,212 Mitsubishi Logistics Corp. 3,000 44 Mitsubishi Materials Corp. 86,000 556 Mitsubishi Rayon Co., Ltd. 26,000 196 Mitsubishi UFJ Financial Group, Inc. 393 4,195 Mitsubishi UFJ Securities Co. 11,000 119 Mitsui & Co., Ltd. 72,800 1,728 Mitsui Chemicals, Inc. 23,000 179 Mitsui Fudosan Co., Ltd. 38,400 1,005 Mitsui Mining & Smelting Co., Ltd. 54,000 260 Mitsui OSK Lines, Ltd. 9,000 141 Mitsui Sumitomo Insurance Co., Ltd. 53,230 615 Mitsui Trust Holdings, Inc. 38,513 341 Mitsukoshi, Ltd. 27,000 130 Mizuho Financial Group, Inc. 464 3,279 Murata Manufacturing Co., Ltd. 8,800 658 NEC Corp. 87,200 429 NEC Electronics Corp. * 2,400 69 NET One Systems Co., Ltd. 30 38 NGK Insulators, Ltd. 18,600 568 NGK Spark Plug Co., Ltd. 11,000 200 Nidec Corp. 4,700 312 Nikon Corp. 14,000 449 Nintendo Co., Ltd. 3,300 1,616 Nippon Building Fund, Inc. REIT 26 346 Nippon Electric Glass Co., Ltd. 13,000 204 Nippon Express Co., Ltd. 36,600 198 Nippon Meat Packers, Inc. 8,600 93 Nippon Mining Holdings, Inc. 23,500 237 Nippon Oil Corp. 72,600 654 Nippon Paper Group, Inc. 43 141 Nippon Sheet Glass Co., Ltd. 19,000 100 Nippon Steel Corp. 217,800 1,645 Nippon Telegraph & Telephone Corp. 131 572 Nippon Yusen KK 56,000 563 CONTINUED 91 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Nishi-Nippon City Bank, Ltd. (The) 46,000 $ 154 Nissan Chemical Industries, Ltd. 6,000 75 Nissan Motor Co., Ltd. 135,300 1,439 Nisshin Seifun Group, Inc. 5,500 51 Nisshin Steel Co., Ltd. 8,000 35 Nisshinbo Industries, Inc. 3,000 37 Nissin Food Products Co., Ltd. 4,000 123 Nitto Denko Corp. 9,400 494 Nomura Holdings, Inc. 80,400 1,534 Nomura Research Institute, Ltd. 5,900 188 NSK, Ltd. 34,000 326 NTN Corp. 26,000 214 NTT Data Corp. 66 276 NTT DoCoMo, Inc. 179 249 Obayashi Corp. 42,000 223 Obic Co., Ltd. 320 63 OJI Paper Co., Ltd. 51,400 248 Oki Electric Industry Co., Ltd. * 23,000 45 Okumura Corp. 11,000 59 Olympus Corp. 7,000 288 Omron Corp. 9,600 255 Onward Kashiyama Co., Ltd. 4,000 48 Oracle Corp. Japan 1,600 71 Oriental Land Co., Ltd. 2,700 141 Osaka Gas Co., Ltd. 86,200 297 Pioneer Corp. 8,001 108 Promise Co., Ltd. 1,350 36 Resona Holdings, Inc. 236 509 Ricoh Co., Ltd. 28,000 609 Rohm Co., Ltd. 7,100 602 Sanken Electric Co., Ltd. 6,000 45 Sanyo Electric Co., Ltd. * 78,000 121 SBI E*trade Securities Co., Ltd. 71 76 Secom Co., Ltd. 8,600 379 Seiko Epson Corp. 5,300 155 Sekisui Chemical Co., Ltd. 20,000 157 Sekisui House, Ltd. 45,600 568 Seven & I Holdings Co., Ltd. 34,280 964 Sharp Corp. 39,200 678 Shimachu Co., Ltd. 2,300 65 Shimamura Co., Ltd. 1,200 116 Shimano, Inc. 4,500 144 Shimizu Corp. 45,600 272 Shin-Etsu Chemical Co., Ltd. 17,848 1,321 Shinko Securities Co., Ltd. 21,000 103 Shinsei Bank, Ltd. 72,000 268 Shionogi & Co., Ltd. 12,000 192 Shiseido Co., Ltd. 16,800 358 Shizuoka Bank, Ltd. (The) 43,000 433 Showa Denko KK 30,000 105 Showa Shell Sekiyu KK 9,700 120 SMC Corp. 3,200 425 Softbank Corp. 43,600 918 Sompo Japan Insurance, Inc. 37,000 430 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Sony Corp. 33,298 $ 1,762 Stanley Electric Co., Ltd. 5,200 124 Sumitomo Bakelite Co., Ltd. 6,000 43 Sumitomo Chemical Co., Ltd. 61,600 461 Sumitomo Corp. 43,600 844 Sumitomo Electric Industries, Ltd. 32,400 533 Sumitomo Heavy Industries, Ltd. 21,000 258 Sumitomo Metal Industries, Ltd. 128,000 744 Sumitomo Metal Mining Co., Ltd. 49,600 1,203 Sumitomo Mitsui Financial Group, Inc. 288 2,615 Sumitomo Osaka Cement Co., Ltd. 12,000 31 Sumitomo Realty & Development Co., Ltd. 17,000 505 Sumitomo Trust & Banking Co., Ltd. (The) 80,000 679 T&D Holdings, Inc. 10,200 667 Taiheiyo Cement Corp. 27,000 115 Taisei Corp. 57,000 202 Taisho Pharmaceutical Co., Ltd. 6,913 134 Taiyo Yuden Co., Ltd. 4,000 86 Takara Holdings, Inc. 6,000 37 Takashimaya Co., Ltd. 17,000 192 Takeda Pharmaceutical Co., Ltd. 38,200 2,494 Takefuji Corp. 1,640 51 TDK Corp. 5,400 461 Teijin, Ltd. 40,400 220 Terumo Corp. 9,000 383 THK Co., Ltd. 2,100 50 TIS, Inc. 1,851 42 Tobu Railway Co., Ltd. 30,600 134 Toho Co., Ltd. 2,200 40 Tohoku Electric Power Co., Inc. 17,800 395 Tokyo Broadcasting System, Inc. 6,100 165 Tokyo Electric Power Co., Inc. (The) 48,900 1,303 Tokyo Electron, Ltd. 10,600 764 Tokyo Gas Co., Ltd. 102,600 444 Tokyo Tatemono Co., Ltd. 13,000 158 Tokyu Corp. 43,400 270 TonenGeneral Sekiyu KK 17,000 166 Toppan Printing Co., Ltd. 21,600 234 Toray Industries, Inc. 57,100 456 Toshiba Corp. 124,000 1,174 Tosoh Corp. 26,000 155 TOTO, Ltd. 24,600 209 Toyo Seikan Kaisha, Ltd. 8,700 152 Toyota Industries Corp. 5,100 231 Toyota Motor Corp. 146,100 8,840 Trend Micro, Inc. 5,200 160 Unicharm Corp. 2,000 109 Uniden Corp. 4,000 32 UNY Co., Ltd. 6,000 64 Ushio, Inc. 3,000 57 USS Co., Ltd. 2,840 191 CONTINUED 92 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Wacoal Holdings Corp. 3,000 $ 37 West Japan Railway Co. 20 91 Yahoo! Japan Corp. 784 244 Yakult Honsha Co., Ltd. 4,600 109 Yamada Denki Co., Ltd. 5,760 577 Yamaha Corp. 5,800 126 Yamaha Motor Co., Ltd. 1,000 28 Yamato Holdings Co., Ltd. 16,000 239 Yamazaki Baking Co., Ltd. 5,000 40 Yokogawa Electric Corp. 9,500 129 ------------ 121,717 ------------ JERSEY (0.0%) Meinl European Land, Ltd. * 6,610 154 ------------ MALAYSIA (0.5%) AMMB Holdings Berhad 40,300 55 Astro All Asia Networks PLC 12,700 14 Berjaya Sports Toto Berhad 20,800 30 British American Tobacco Malaysia Berhad 3,300 38 Bumiputra-Commerce Holdings Berhad 55,900 189 Bursa Malaysia Berhad 9,200 30 Gamuda Berhad 18,000 40 Genting Berhad 44,500 102 Golden Hope Plantations Berhad 11,600 28 Hong Leong Bank Berhad 16,700 30 IJM Corp. Berhad 201,050 504 IOI Corp. Berhad 90,500 138 Kuala Lumpur Kepong Berhad 10,650 39 Lafarge Malayan Cement Berhad 38,800 19 Magnum Corp. Berhad 27,300 23 Malayan Banking Berhad 47,500 168 Media Prima Berhad 15,500 13 MISC Berhad 25,300 75 Petronas Gas Berhad 10,800 34 PLUS Expressways Berhad 38,700 36 POS Malaysia & Services Holdings Berhad * 4,900 7 PPB Group Berhad 14,300 31 Proton Holdings Berhad 9,200 15 Public Bank Berhad 31,200 94 Resorts World Berhad 68,500 82 RHB Capital Berhad 24,600 43 Shell Refining Co. Federation of Malaya Berhad 4,100 13 Sime Darby Berhad 39,300 115 SP Setia Berhad 17,100 42 Star Publications Malaysia Berhad 7,300 7 Tanjong PLC 5,700 29 Telekom Malaysia Berhad 23,900 70 Tenaga Nasional Berhad 28,600 90 Transmile Group Berhad 2,400 4 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED MALAYSIA, CONTINUED UMW Holdings Berhad 3,500 $ 15 YTL Corp. Berhad 17,200 38 ------------ 2,300 ------------ MEXICO (1.8%) Alfa SAB de CV, Series A 13,000 89 America Movil SAB de CV, Series L 1,098,200 3,280 Cemex SAB de CV * 260,029 838 Coca-Cola Femsa SAB de CV, Series L 6,000 27 Corp GEO SAB de CV, Series B * 60,500 331 Desarrolladora Homex SAB de CV ADR * 4,300 243 Fomento Economico Mexicano SAB de CV 81,000 299 Grupo Carso SA de CV, Series A1 30,000 120 Grupo Financiero Banorte SAB de CV 243,055 1,079 Grupo Mexico SAB de CV, Series B 46,813 327 Grupo Modelo SAB de CV, Series C 21,000 113 Grupo Televisa SA 91,500 462 Kimberly-Clark de Mexico SAB de CV, Series A 21,000 83 Telefonos de Mexico SAB de CV, Series L 523,300 894 Urbi Desarrollos Urbanos SA de C.V * 35,100 148 Wal-Mart de Mexico SAB de CV, Series V 243,092 883 ------------ 9,216 ------------ NETHERLANDS (4.6%) ABN AMRO Holding NV 73,803 3,541 Aegon NV 60,987 1,107 Akzo Nobel NV 7,850 646 Arcelor Mittal 14,085 864 ASML Holding NV * 17,353 509 Corio NV 2,533 182 European Aeronautic Defence and Space Co. NV 5,628 171 Heineken NV 7,900 501 ING Groep NV 48,883 2,068 James Hardie Industries NV 23,149 146 Koninklijke DSM NV 4,360 226 Koninklijke Philips Electronics NV 31,202 1,257 OCE NV 3,566 83 Qiagen NV * 7,202 125 Reed Elsevier NV 14,381 264 Royal Dutch Shell PLC, A Shares 115,584 4,498 Royal Dutch Shell PLC, B Shares 80,764 3,193 Royal KPN NV 55,236 853 TNT NV 15,209 650 Unilever NV 61,414 1,853 Vedior NV 4,625 120 Wereldhave NV 1,034 131 Wolters Kluwer NV 8,003 233 ------------ 23,221 ------------ CONTINUED 93 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED NEW ZEALAND (0.0%) Auckland International Airport, Ltd. 7,148 $ 18 Contact Energy, Ltd. 2,639 19 Fisher & Paykel Appliances Holdings, Ltd. 1,810 5 Fisher & Paykel Healthcare Corp. 2,095 5 Fletcher Building, Ltd. 2,432 23 Sky City Entertainment Group, Ltd. 2,560 9 Telecom Corp. of New Zealand, Ltd. 12,921 45 Warehouse Group, Ltd. 1,226 6 ------------ 130 ------------ NORWAY (1.2%) DnB NOR ASA 23,596 313 Norsk Hydro ASA 42,710 1,640 Norske Skogindustrier ASA 12,800 180 Orkla ASA 70,600 1,340 Schibsted ASA 2,200 96 Statoil ASA 39,950 1,173 Storebrand ASA 2,300 35 Tandberg ASA 10,200 230 Telenor ASA * 40,600 741 Tomra Systems ASA 3,735 29 Yara International ASA 13,342 358 ------------ 6,135 ------------ POLAND (0.7%) Agora SA 2,600 41 Bank BPH SA 500 174 Bank Pekao SA 10,145 938 Bank Zachodni WBK SA 1,300 128 BRE Bank SA * 500 92 Globe Trade Centre SA * 6,500 89 Grupa Kety SA 600 43 KGHM Polska Miedz SA 6,200 279 Orbis SA 2,200 58 Polish Oil & Gas Co. 78,800 138 Polski Koncern Naftowy Orlen * 18,300 356 Powszechna Kasa Oszczednosci Bank Polski SA 23,700 498 Prokom Software SA 1,100 62 Telekomunikacja Polska SA 40,900 323 TVN SA 8,000 67 ------------ 3,286 ------------ PORTUGAL (0.3%) Banco BPI SA 2,389 22 Banco Comercial Portugues SA 88,339 450 Brisa-Auto Estradas de Portugal SA 20,326 277 Energias de Portugal SA 12,673 72 Portugal Telecom SGPS SA 24,085 338 PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA 1,374 22 Sonae SGPS SA 25,407 74 ------------ 1,255 ------------ CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED RUSSIA (1.4%) Gazprom OAO ADR 35,437 $ 1,790 LUKOIL ADR 10,582 852 MMC Norilsk Nickel ADR 5,854 1,390 Mobile Telesystems OJSC ADR 6,000 384 Novolipetsk Steel GDR 5,600 176 Polyus Gold Co. ADR 3,400 133 Sberbank GDR 974 442 Severstal GDR 11,000 194 Surgutneftegaz ADR 7,300 440 Tatneft GDR 2,200 221 Unified Energy System GDR * 2,827 95 Vimpel-Communications ADR 3,100 328 Wimm-Bill-Dann Foods OJSC ADR 2,800 263 ------------ 6,708 ------------ SINGAPORE (2.3%) Ascendas Real Estate Investment Trust REIT 74,000 131 CapitaLand, Ltd. 91,000 444 CapitaMall Trust REIT 66,300 163 Chartered Semiconductor Manufacturing, Ltd. * 100,000 73 City Developments, Ltd. 39,370 388 ComfortDelgro Corp., Ltd. 141,333 190 Cosco Corp. Singapore, Ltd. 58,000 193 Creative Technology, Ltd. 8,854 42 DBS Group Holdings, Ltd. 79,945 1,201 Fraser and Neave, Ltd. 148,000 504 Jardine Cycle & Carriage, Ltd. 19,031 201 Keppel Corp., Ltd. 80,000 698 Keppel Land, Ltd. 25,000 136 K-REIT Asia REIT 6,400 12 Neptune Orient Lines, Ltd. 82,000 298 Oversea-Chinese Banking Corp. 180,490 1,071 Parkway Holdings, Ltd. 44,000 111 SembCorp Industries, Ltd. 61,784 231 SembCorp Marine, Ltd. 39,000 145 Singapore Airlines, Ltd. 41,000 518 Singapore Exchange, Ltd. 57,911 369 Singapore Land, Ltd. 25,000 171 Singapore Post, Ltd. 107,000 87 Singapore Press Holdings, Ltd. 114,743 338 Singapore Technologies Engineering, Ltd. 100,760 243 Singapore Telecommunications, Ltd. 859,877 1,960 STATS ChipPAC, Ltd. * 95,000 106 United Overseas Bank, Ltd. 84,720 1,241 UOL Group, Ltd. 47,376 166 Venture Corp., Ltd. 19,445 193 ------------ 11,624 ------------ SOUTH AFRICA (0.2%) Mondi, Ltd. * 7,752 67 MTN Group, Ltd. 75,490 1,057 ------------ 1,124 ------------ CONTINUED 94 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED SOUTH KOREA (0.7%) Doosan Heavy Industries and Construction Co., Ltd. 8,680 $ 914 LG.Philips LCD Co., Ltd. * 25,330 1,181 Samsung Electronics Co., Ltd. 2,404 1,583 ------------ 3,678 ------------ SPAIN (2.4%) Abertis Infraestructuras SA 7,257 213 Acciona SA 735 188 Acerinox SA 5,909 154 ACS Actividades Cons y Serv 5,451 323 Altadis SA 9,909 652 Antena 3 de Television SA * 1,180 22 Banco Bilbao Vizcaya Argentaria SA 72,254 1,765 Banco Popular Espanol SA 20,261 362 Banco Santander Central Hispano SA 118,360 2,219 Cintra Concesiones de Infraestructuras de Transporte SA 6,723 102 Endesa SA 11,104 599 Fomento de Construcciones y Contratas SA 820 74 Gas Natural SDG SA 15,360 877 Grupo Ferrovial SA 1,215 108 Iberdrola SA 15,995 884 Inditex SA * 4,280 257 Indra Sistemas SA 1,842 48 Repsol YPF SA 17,250 650 Sacyr Vallehermoso SA 1,913 87 Sociedad General de Aguas de Barcelona SA, Class A 1,803 66 Telefonica SA 99,115 2,314 Union Fenosa SA 1,918 105 ------------ 12,069 ------------ SWEDEN (3.2%) Alfa Laval AB 900 57 Assa Abloy AB, Series B 14,750 320 Atlas Copco AB, A Shares 29,384 505 Atlas Copco AB, B Shares 17,636 283 Billerud AB 4,750 72 Electrolux AB, Series B 9,700 245 Eniro AB 5,800 71 Getinge AB, B Shares 7,600 168 Hennes & Mauritz AB, B Shares 15,350 888 Holmen AB, B Shares 2,500 105 Husqvarna AB, A Shares 2,790 38 Husqvarna AB, B Shares 9,300 130 Modern Times Group AB, B Shares 1,850 114 Nordea Bank AB 159,422 2,562 Sandvik AB 47,240 951 Scania AB, B Shares 19,600 464 Securitas AB, B Shares 19,100 292 Securitas Direct AB, B Shares * 15,700 43 CONTINUED SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED SWEDEN, CONTINUED Securitas Systems AB, B Shares 18,700 $ 66 Skandinaviska Enskilda Banken AB, Series A 27,520 939 Skanska AB, B Shares 16,117 345 SKF AB, B Shares 14,800 312 Ssab Svenskt Stal AB, Series A 8,400 300 Svenska Cellulosa AB, B Shares 27,900 494 Svenska Handelsbanken AB, A Shares 44,802 1,282 Swedish Match AB 24,100 472 Tele2 AB, B Shares 6,425 112 Telefonaktiebolaget LM Ericsson, B Shares 729,737 2,734 TeliaSonera AB 65,426 496 Volvo AB, A Shares 22,165 408 Volvo AB, B Shares 51,550 938 ------------ 16,206 ------------ SWITZERLAND (4.5%) ABB, Ltd. 46,968 1,129 ABB, Ltd. ADR 25,000 602 Adecco SA 1,348 93 Ciba Specialty Chemicals AG 1,698 103 Clariant AG * 5,819 90 Compagnie Financiere Richemont SA 9,222 578 Credit Suisse Group 28,660 1,871 Geberit AG 1,151 189 Givaudan SA 169 158 Holcim, Ltd. 5,346 567 Kudelski SA 1,477 50 Logitech International SA * 5,827 157 Lonza Group AG 981 93 Micronas Semiconductor Hold * 1,178 18 Nestle SA 10,772 4,115 Nobel Biocare Holding AG 670 202 Novartis AG 46,515 2,513 OC Oerlikon Corp. AG * 184 82 Roche Holding AG 14,029 2,484 Schindler Holding AG 1,885 119 SGS SA 105 127 STMicroelectronics NV 21,128 362 Straumann Holding AG 391 109 Swatch Group AG 700 210 Swiss Reinsurance 10,360 885 Swisscom AG 487 165 Syngenta AG 2,483 469 Synthes, Inc. 1,477 172 UBS AG 41,990 2,329 Xstrata PLC 36,699 2,331 Zurich Financial Services AG 1,123 327 ------------ 22,699 ------------ TAIWAN (0.1%) AU Optronics Corp. ADR 41,328 699 ------------ CONTINUED 95 INTERNATIONAL EQUITY SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- SHARES VALUE ------------ ------------ FOREIGN STOCKS, CONTINUED TURKEY (0.3%) Akbank TAS 55,596 $ 375 Turkcell Iletisim Hizmet AS 118,196 834 Turkiye Is Bankasi 83,305 454 ------------ 1,663 ------------ TOTAL FOREIGN STOCKS 476,237 ------------ INVESTMENT COMPANIES (0.0%) UNITED STATES (0.0%) iShares MSCI Hong Kong Index Fund 5,000 90 ------------ TOTAL INVESTMENT COMPANIES 90 ------------ PREFERRED STOCKS (1.9%) BRAZIL (1.5%) Aracruz Celulose SA, B Shares 14,867 94 Banco Bradesco SA 23,404 609 Banco Itau Holding Financeira SA 26,234 1,204 Brasil Telecom Participacoes SA 7,895 104 Centrais Eletricas Brasileiras SA, B Shares 3,747,000 97 Cia de Bebidas das Americas 564,824 389 Cia Energetica de Minas Gerais 10,021 202 Cia Vale do Rio Doce, A Shares 41,952 1,764 Gerdau SA 10,660 269 Klabin SA 20,000 68 Petroleo Brasileiro SA 80,641 2,257 Sadia SA 16,000 76 Tele Norte Leste Participacoes SA 9,537 203 Usinas Siderurgicas de Minas Gerais SA, A Shares 3,373 207 Vivo Participacoes SA 14,249 64 Votorantim Celulose e Papel SA 3,000 71 ------------ 7,678 ------------ GERMANY (0.4%) Henkel KGaA 9,210 497 Porsche AG 351 633 RWE AG 1,822 173 Volkswagen AG 4,659 524 ------------ 1,827 ------------ TOTAL PREFERRED STOCKS 9,505 ------------ RIGHTS (0.0%) BRAZIL (0.0%) GOL Linhas Aereas Rights 846 --# ------------ SWEDEN (0.0%) Dowa Holdings Co., Ltd. 28,000 --# Ssab Svenskt Stal AB * 8,400 --# ------------ TOTAL RIGHTS --# ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES (0.1%) UNITED STATES (0.1%) FANNIE MAE (0.1%) 5.28%, 8/29/07 ** $ 700 $ 697 ------------ TOTAL U.S. GOVERNMENT AGENCIES 697 ------------ SHARES ------------ MONEY MARKETS (b) (0.0%) UNITED STATES (0.0%) J.P. Morgan Prime Money Market 7,045 7 ------------ TOTAL MONEY MARKETS 7 ------------ TOTAL INVESTMENTS (COST $364,887) - 96.6% 486,536 OTHER ASSETS IN EXCESS OF LIABILITIES - 3.4% 17,457 ------------ NET ASSETS - 100.0% $ 503,993 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS * Non-income producing security. ** Rate represents the effective yield at purchase. # Amount is less than $500. (a) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (b) Investment is in Institutional Shares of underlying fund. (c) The Fund's securities were fair valued at July 31, 2007 using procedures approved by the Board of Trustees. The following abbreviations are used in the Schedule of Portfolio Investments: ADR - American Depositary Receipt GDR - Global Depositary Receipt REIT - Real Estate Investment Trust SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 96 HIGH YIELD BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS (83.8%) Advanced Medical Optics, Inc., 7.50%, 5/1/17, (Callable 5/1/12 @ 103.75) $ 386 $ 351 Allied Waste North America, Inc., 7.25%, 3/15/15 750 724 American Axle & Manufacturing, Inc., 7.88%, 3/1/17 708 637 Aramark Corp., 8.50%, 2/1/15 (b) 714 673 Asbury Automotive Group, Inc., 8.00%, 3/15/14 750 720 Asbury Automotive Group, Inc., 7.63%, 3/15/17 (b) 18 17 Ashtead Capital, Inc., 9.00%, 8/15/16 (b) 480 482 Atlas Pipeline Partners LP, 8.13%, 12/15/15 373 367 AutoNation, Inc., 7.00%, 4/15/14 112 105 Aventine Renewable Energy Holdings, Inc., 10.00%, 4/1/17 (b) 251 236 Baldor Electric Co., 8.63%, 2/15/17 101 104 Basic Energy Services, Inc., 7.13%, 4/15/16 750 683 Beazer Homes USA, Inc., 6.88%, 7/15/15 750 581 Belden, Inc., 7.00%, 3/15/17 (b) 183 173 Berry Petroleum Co., 8.25%, 11/1/16 1,104 1,065 Bristow Group, Inc., 6.13%, 6/15/13 600 564 Buckeye Technologies, Inc., 8.50%, 10/1/13 750 754 Case Corp., 7.25%, 1/15/16 365 360 Cenveo Corp., 7.88%, 12/1/13 862 815 Champion Enterprises, Inc., 7.63%, 5/15/09 755 747 Chaparral Steel Co., 10.00%, 7/15/13 750 827 Chesapeake Energy Corp., 6.88%, 1/15/16 750 714 Chesapeake Energy Corp., 6.50%, 8/15/17 149 137 Cincinnati Bell, Inc., 8.38%, 1/15/14 117 111 Citizens Communications Co., 6.25%, 1/15/13 1,314 1,207 Communications & Power Industries, Inc., 8.00%, 2/1/12 750 754 Community Health Systems, Inc., 8.88%, 7/15/15 (b) 258 251 Copano Energy LLC, 8.13%, 3/1/16 171 171 CSC Holdings, Inc., Series B, 8.13%, 8/15/09 750 748 Del Monte Corp., 8.63%, 12/15/12 550 553 Del Monte Corp., 6.75%, 2/15/15 (b) 750 728 Dex Media, Inc., 8.00%, 11/15/13 184 180 Dex Media, Inc., 9.91%, 11/15/13 **(d) 860 774 Dresser-Rand Group, Inc., 7.38%, 11/1/14 850 816 DRS Technologies, Inc., 6.63%, 2/1/16 256 243 Dynegy Holdings, Inc., 7.75%, 6/1/19 (b) 366 317 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS, CONTINUED Edison Mission Energy, 7.50%, 6/15/13 $ 249 $ 240 Edison Mission Energy, 7.00%, 5/15/17 (b) 251 227 Enterprise Products Operating LP, 8.38%, 8/1/66 (a) 1,050 1,071 Ford Motor Co., 7.45%, 7/16/31 800 616 Ford Motor Credit Co. LLC, 7.88%, 6/15/10 875 837 Forest Oil Corp., 7.25%, 6/15/19 (b) 365 340 Foundation PA Coal Co., 7.25%, 8/1/14 750 705 Freeport-McMoRan Copper & Gold, Inc., 8.25%, 4/1/15 250 262 GCI, Inc., 7.25%, 2/15/14 750 690 General Cable Corp., 7.13%, 4/1/17 18 17 Gibraltar Industries, Inc., Series B, 8.00%, 12/1/15 750 713 Glencore Funding LLC, 6.00%, 4/15/14 (b) 750 741 GMAC LLC, 6.88%, 9/15/11 750 697 GMAC LLC, 8.00%, 11/1/31 750 704 Hanover Equipment Trust, Series B, 8.75%, 9/1/11 750 773 HCA, Inc., 5.75%, 3/15/14 769 592 HCA, Inc., 6.50%, 2/15/16 731 563 HCA, Inc., 9.25%, 11/15/16 (b) 357 354 IASIS Healthcare LLC/IASIS Capital Corp., 8.75%, 6/15/14 1,121 1,076 Idearc, Inc., 8.00%, 11/15/16 805 763 IKON Office Solutions, Inc., 7.75%, 9/15/15 750 735 Intelsat Corp., 9.00%, 8/15/14 806 811 Invacare Corp., 9.75%, 2/15/15 1,837 1,745 Jarden Corp., 7.50%, 5/1/17 625 563 K Hovnanian Enterprises, Inc., 8.63%, 1/15/17 250 206 KB Home, 7.25%, 6/15/18 750 652 Lamar Media Corp., 7.25%, 1/1/13 185 178 Lamar Media Corp., Series B, 6.63%, 8/15/15 209 190 M/I Homes, Inc., 6.88%, 4/1/12 1,000 865 Massey Energy Co., 6.88%, 12/15/13 750 661 Mirant North America LLC, 7.38%, 12/31/13 750 746 Mosaic Co. (The), 7.38%, 12/1/14 (b) 161 160 Mosaic Co. (The), 7.63%, 12/1/16 (b) 332 334 Mueller Water Products, Inc., 7.38%, 6/1/17 (b) 702 656 Mylan Laboratories, Inc., 6.38%, 8/15/15 750 756 NRG Energy, Inc., 7.25%, 2/1/14 730 704 Omnicare, Inc., 6.88%, 12/15/15 107 97 Overseas Shipholding Group, 8.75%, 12/1/13 280 294 CONTINUED 97 HIGH YIELD BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS, CONTINUED Owens Brockway Glass Container, Inc., 6.75%, 12/1/14 $ 750 $ 690 Peabody Energy Corp., 7.38%, 11/1/16 137 134 Penske Auto Group, Inc., 7.75%, 12/15/16 548 526 Pilgrim's Pride Corp., 9.63%, 9/15/11 150 153 Pilgrim's Pride Corp., 7.63%, 5/1/15 861 831 PNA Group, Inc., 10.75%, 9/1/16 (b) 299 320 PolyOne Corp., 8.88%, 5/1/12 750 750 Radio One, Inc., Series B, 8.88%, 7/1/11 72 72 Range Resources Corp., 7.38%, 7/15/13 351 349 Regency Energy Partners LP/Regency Energy Finance Corp., 8.38%, 12/15/13 (b) 1,000 1,030 Reliant Energy, Inc., 7.63%, 6/15/14 85 81 Sabine Pass LNG LP, 7.25%, 11/30/13 (b) 734 701 Sealy Mattress Co., 8.25%, 6/15/14, (Callable 6/15/09 @ 104.125) 630 621 Service Corp. International, 7.00%, 6/15/17 750 682 Solo Cup Co., 8.50%, 2/15/14 750 608 Southern Copper Corp., 6.38%, 7/27/15 500 507 Steel Dynamics, Inc., 6.75%, 4/1/15 (b) 221 210 Stewart Enterprises, Inc., 6.25%, 2/15/13 500 462 Sungard Data Systems, Inc., 9.13%, 8/15/13 750 754 TEPPCO Partners LP, 7.00%, 6/1/67 (a) 348 320 Texas Industries, Inc., 7.25%, 7/15/13 705 698 Trinity Industries, Inc., 6.50%, 3/15/14 750 712 Tube City IMS Corp., 9.75%, 2/1/15, (Callable 2/1/11 @ 104.875) 116 113 United Refining Co., Series 2, 10.50%, 8/15/12 750 758 United Rentals North America, Inc., 6.50%, 2/15/12 375 375 Universal Hospital Services, Inc., 8.76%, 6/1/15 (a) (b) 275 256 US Concrete, Inc., 8.38%, 4/1/14 1,000 960 Visant Holding Corp., 8.75%, 12/1/13 1,077 1,066 Windstream Corp., 8.13%, 8/1/13 181 183 Windstream Corp., 8.63%, 8/1/16 1,258 1,274 WMG Acquisition Corp., 7.38%, 4/15/14 362 324 ------------ TOTAL CORPORATE BONDS 57,543 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ FOREIGN BONDS (13.1%) Basell AF SCA, 8.38%, 8/15/15 (b) $ 1,071 $ 953 Bluewater Finance, Ltd., 10.25%, 2/15/12 700 736 CHC Helicopter Corp., 7.38%, 5/1/14 870 809 Intergen NV, 9.00%, 6/30/17, (Callable 6/30/12 @ 104.5) (b) 1,800 1,773 Novelis, Inc., 7.25%, 2/15/15 1,100 1,103 NXP BV/NXP Funding LLC, 7.88%, 10/15/14 390 361 Quebecor Media, Inc., 7.75%, 3/15/16 902 848 Sensata Technologies BV, 8.00%, 5/1/14 714 657 Stena AB, 7.50%, 11/1/13 750 746 Stena AB, 7.00%, 12/1/16 250 246 Videotron Ltee, 6.88%, 1/15/14 750 701 Virgin Media Finance PLC, 8.75%, 4/15/14 72 72 ------------ TOTAL FOREIGN BONDS 9,005 ------------ SHARES ------------ INVESTMENTS IN AFFILIATES (c) (1.5%) Fifth Third Institutional Money Market Fund 1,018,499 1,019 ------------ TOTAL INVESTMENTS IN AFFILIATES 1,019 ------------ TOTAL INVESTMENTS (COST $70,509) - 98.4% 67,567 OTHER ASSETS IN EXCESS OF LIABILITIES - 1.6% 1,098 ------------ NET ASSETS - 100.0% $ 68,665 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund. (d) Step Bond. Security that pays no interest for a stipulated number of years, after which it pays a predetermined interest rate. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 98 BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET-BACKED SECURITIES (9.3%) Aerco, Ltd., Series N Ap-2A, Class A3, 5.78%, 7/15/25 (a) (b) $ 997 $ 847 Credit-Based Asset Servicing and Securitization LLC, Series 2006-CB1, Class AF4, 5.44%, 1/25/36 3,350 3,282 GMAC Mortgage Corp. Loan Trust, Series 2004-HE5, Class A4, 4.34%, 9/25/34 (a) 1,750 1,730 Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 129 126 Hertz Vehicle Financing LLC, Series 2005-2A, Class A6, 5.08%, 11/25/11 (b) 1,500 1,491 Irwin Home Equity Corp., Series 2006-3, Class 2A2, 5.83%, 9/25/37 (b) 1,225 1,225 Residential Asset Mortgage Products, Inc., Series 2003-RZ5, Class A7, 4.97%, 9/25/33 3,240 3,186 SACO I, Inc., Series 2006-1, Class A, 5.49%, 9/25/35 (a) (f) 3,961 3,931 SACO I, Inc., Series 2006-12, Class 1M1, 5.63%, 9/25/36 (a) (f) 4,000 3,704 Susquehanna Auto Lease Trust, Series 2007-1, Class B, 5.31%, 7/14/10 (b) 1,000 1,001 Truck Retail Installment Paper Corp., Series 2005-1A, Class A, 5.59%, 12/15/16 (a) (b) (f) 1,950 1,951 ------------ TOTAL ASSET-BACKED SECURITIES 22,474 ------------ CORPORATE BONDS (5.2%) Comcast Cable Communications LLC, 7.13%, 6/15/13 1,750 1,850 COX Communications, Inc., 5.50%, 10/1/15 800 758 Goldman Sachs Group, Inc. (The), 6.13%, 2/15/33 1,100 1,033 Merrill Lynch & Co., Inc., 5.70%, 5/2/17 1,000 944 Morgan Stanley, 5.75%, 10/18/16 1,000 975 Republic New York Corp., 7.00%, 3/22/11 1,000 1,049 Science Applications International Corp., 5.50%, 7/1/33 2,105 1,855 Sprint Capital Corp., 8.75%, 3/15/32 600 659 Time Warner, Inc., 7.70%, 5/1/32 492 530 Travelers Property Casualty Corp., 7.75%, 4/15/26 85 99 UBS Preferred Funding Trust I, 8.62%, 10/1/10 (a) 925 1,006 Wachovia Bank NA, 5.85%, 2/1/37 850 796 Wyeth, 5.95%, 4/1/37 1,000 949 ------------ TOTAL CORPORATE BONDS 12,503 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ FOREIGN BONDS (1.4%) Canadian Natural Resources, Ltd., 6.25%, 3/15/38 $ 1,000 $ 956 France Telecom SA, 8.50%, 3/1/31 650 814 Gazprom International SA, 7.20%, 2/1/20 (b) 954 966 TransCanada Pipelines, Ltd., 5.60%, 3/31/34 750 694 ------------ TOTAL FOREIGN BONDS 3,430 ------------ MORTGAGE-BACKED SECURITIES (39.0%) Banc of America Commercial Mortgage, Inc., Series 2005-6, Class AJ, 5.18%, 9/10/47 (a) 2,850 2,715 Banc of America Funding Corp., Series 2006-G, Class 3A2, 5.75%, 7/20/36 (a) 4,895 4,921 Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A3, 4.65%, 1/25/35 (a) 1,114 1,101 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 11A2, 5.41%, 2/25/36 (a) 2,986 2,994 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 13A1, 5.46%, 2/25/36 (a) 3,604 3,542 Bear Stearns Commercial Mortgage Securities, Series 2000-WF2, Class A1, 7.11%, 10/15/32 1,052 1,057 Bear Stearns Commercial Mortgage Securities, Series 2004-T14, Class A4, 5.20%, 1/12/41 2,000 1,942 Bear Stearns Commercial Mortgage Securities, Series 2004-T16, Class A6, 4.75%, 2/13/46 4,000 3,761 Chase Mortgage Finance Corp., Series 2006-A1, Class 2A3, 6.00%, 9/25/36 (a) 2,000 2,013 Chaseflex Trust, Series 2006-1, Class A2A, 5.94%, 6/25/36 1,600 1,606 Countrywide Alternative Loan Trust, Series 2005-J3, Class 3A1, 6.50%, 9/25/34 514 519 Crown Castle Towers LLC, Series 2006-1A, Class E, 6.07%, 11/15/36 (b) 2,800 2,667 Global Signal Trust, Series 2006-1, Class C, 5.71%, 2/15/36 (b) 2,550 2,509 GMAC Mortgage Corp. Loan Trust, Series 2003-GH2, Class A4, 5.00%, 10/25/33 2,700 2,621 Greenwich Capital Commercial Funding Corp., Series 2002-C1, Class A4, 4.95%, 1/11/35 1,000 969 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 2,200 2,158 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 4,900 4,827 CONTINUED 99 BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED Homebanc Mortgage Trust, Series 2004-2, Class A2, 5.77%, 12/25/34 (a) (f) $ 1,945 $ 1,949 Homebanc Mortgage Trust, Series 2006-1, Class 1A1, 6.13%, 4/25/37 (a) (f) 755 768 Indymac Index Mortgage Loan Trust, Series 2005-AR9, Class 1A1, 5.44%, 7/25/35 (a) 2,980 3,013 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-CB6, Class A2, 5.26%, 7/12/37 865 847 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.84%, 2/25/35 (a) 927 914 JP Morgan Mortgage Trust, Series 2005-A2, Class 3A2, 4.90%, 4/25/35 3,000 2,934 JP Morgan Mortgage Trust, Series 2005-A2, Class 7CB1, 4.90%, 4/25/35 (a) 3,417 3,351 JP Morgan Mortgage Trust, Series 2005-A3, Class 7CA1, 5.11%, 6/25/35 (a) 2,350 2,337 JP Morgan Mortgage Trust, Series 2005-ALT1, Class 4A1, 5.65%, 10/25/35 (a) 3,375 3,298 JP Morgan Mortgage Trust, Series 2006-A2, Class 3A2, 5.68%, 4/25/36 (a) 3,592 3,550 JP Morgan Mortgage Trust, Series 2006-A4, Class 2A2, 5.82%, 6/25/36 (a) 876 876 LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A2, 4.55%, 7/15/30 330 323 Morgan Stanley Capital I, Series 2004-IQ8, Class A5, 5.11%, 6/15/40 3,200 3,080 Morgan Stanley Dean Witter Capital I, Series 2003-TOP9, Class A2, 4.74%, 11/13/36 2,590 2,483 Morgan Stanley Mortgage Loan Trust, Series 2004-4, Class 3A, 5.00%, 8/25/19 1,864 1,798 Residential Accredit Loans, Inc., Series 2004-QA1, Class A1, 5.59%, 3/25/34 (a) (f) 1,573 1,574 Residential Accredit Loans, Inc., Series 2005-QA12, Class CB1, 5.74%, 12/25/35 (a) 2,818 2,813 Residential Accredit Loans, Inc., Series 2006-QA8, Class A3, 5.56%, 9/25/36 (a) --# --# Residential Funding Mortgage Securities I, Series 2007-S2, Class A10, 6.00%, 2/25/37 430 424 Restructured Assets Certificates, Series 2006-9, Class P, 6.00%, 3/23/27 (a) (b) (e) (d) 2,000 2,000 Structured Asset Securities Corp., Series 2004-21XS, Class 2A6B, 5.15%, 12/25/34 1,245 1,197 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED Suntrust Alternative Loan Trust, Series 2005-1F, Class B3, 6.07%, 12/25/35 (a) (d) $ 1,389 $ 1,010 WaMu Mortgage Pass Through Certificates, Series 2003-AR9, Class 1A6, 4.05%, 9/25/33 (a) 5,862 5,767 WaMu Mortgage Pass Through Certificates, Series 2004-AR3, Class A2, 4.24%, 6/25/34 (a) 1,502 1,476 Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, Class 2A3, 4.75%, 12/25/33 (a) 1,550 1,504 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR7, Class 2A2, 5.14%, 5/25/35 (a) 2,756 2,680 ------------ TOTAL MORTGAGE-BACKED SECURITIES 93,888 ------------ U.S. GOVERNMENT AGENCIES (49.6%) FANNIE MAE (30.5%) 6.05%, 12/1/08 2,784 2,793 6.00%, 5/1/17 169 170 6.50%, 6/1/17 227 232 6.50%, 8/1/17 188 192 5.50%, 1/1/18 13 12 5.50%, 2/1/18 7 7 6.00%, 5/1/18 806 812 4.50%, 8/1/22, TBA 4,200 4,001 5.50%, 2/1/25 1,254 1,227 5.00%, 5/1/25 2,065 1,969 7.50%, 6/1/28 229 240 6.50%, 8/1/28 203 208 6.50%, 6/1/29 174 177 6.50%, 4/1/32 348 355 6.50%, 6/1/32 698 710 7.00%, 6/1/32 173 181 6.50%, 7/1/32 995 1,014 7.00%, 8/1/32 540 560 7.50%, 12/1/32 89 93 6.00%, 1/1/33 357 356 6.50%, 3/1/33 168 171 6.00%, 8/25/33 (a) 2,314 2,257 5.50%, 12/25/33 900 890 5.50%, 5/25/34 (a) (f) 5,605 5,603 7.00%, 9/1/34 90 92 5.50%, 12/1/34 4,896 4,746 5.50%, 6/1/35 643 623 6.00%, 7/1/35 3,791 3,763 6.00%, 9/1/35 2,164 2,148 5.00%, 11/1/35 3,693 3,474 5.50%, 11/1/35 1,060 1,027 6.00%, 1/1/36 3,905 3,877 5.62%, 4/25/36 2,859 2,596 6.50%, 8/1/36 3,150 2,968 7.00%, 9/1/36 1,517 1,558 5.50%, 11/1/36 1,660 1,605 CONTINUED 100 BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES, CONTINUED 6.00%, 12/1/36 $ 1,359 $ 1,348 5.50%, 1/1/37 4,117 3,978 6.00%, 1/1/37 5,170 5,126 5.50%, 4/25/37 1,022 1,028 7.00%, 5/1/37 798 820 5.00%, 8/1/37, TBA 7,000 6,565 5.50%, 8/1/37, TBA 2,000 1,931 ------------ 73,503 ------------ FEDERAL HOME LOAN BANK, SERIES W7-2010, CLASS 1 (0.2%) 4.00%, 2/25/10 587 571 ------------ FREDDIE MAC (14.3%) 4.00%, 1/15/17 4,000 3,790 5.00%, 2/15/25 3,245 3,041 7.00%, 6/1/26 657 677 6.50%, 1/1/29 1,404 1,436 7.00%, 1/1/32 115 119 6.50%, 7/1/32 227 232 6.50%, 9/1/32 152 155 5.00%, 8/1/33 405 382 6.00%, 9/1/33 501 500 5.00%, 5/1/34 198 186 6.50%, 5/15/34 (a) 989 1,004 4.50%, 6/1/34 862 786 4.50%, 9/1/34 1,056 964 5.50%, 3/15/35 2,770 2,695 5.00%, 7/1/35 523 492 5.00%, 8/1/35 1,195 1,124 5.00%, 11/1/35 4,134 3,889 5.00%, 4/1/36 474 446 5.00%, 7/1/36, TBA 2,108 1,979 5.72%, 7/15/36 (a) (f) 1,776 1,783 5.33%, 3/1/37 (a) 1,000 993 5.50%, 8/1/37, TBA 8,000 7,728 ------------ 34,401 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (3.4%) 0.57%, 4/16/46, , IO (a) 37,650 1,436 0.80%, 5/16/46, , IO (a) 24,697 1,361 3.40%, 5/16/46 (a) 2,586 1,588 0.91%, 8/16/46, , IO (a) 24,781 1,441 1.00%, 2/16/48, , IO (a) 14,932 915 1.07%, 6/16/49, , IO (a) 21,245 1,399 ------------ 8,140 ------------ TENNESSEE VALLEY AUTHORITY (1.2%) 6.21%, 12/15/17 ** 5,000 2,925 ------------ TOTAL U.S. GOVERNMENT AGENCIES 119,540 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. TREASURY OBLIGATIONS (3.4%) U.S. TREASURY BONDS (0.0%) 4.50%, 2/15/36 $ 100 $ 94 ------------ U.S. TREASURY NOTES (0.8%) 4.50%, 4/30/12 750 746 4.63%, 2/15/17 500 494 4.50%, 5/15/17 660 646 ------------ 1,886 ------------ U.S. TREASURY STRIPS (2.6%) 6.18%, 5/15/17 ** 5,580 3,467 8.21%, 11/15/27 ** 7,400 2,685 ------------ 6,152 ------------ TOTAL U.S. TREASURY OBLIGATIONS 8,132 ------------ SHARES ------------ INVESTMENTS IN AFFILIATES (c) (0.3%) Fifth Third Institutional Money Market Fund 689,136 689 ------------ TOTAL INVESTMENTS IN AFFILIATES 689 ------------ TOTAL INVESTMENTS (COST $265,200) - 108.2% 260,656 LIABILITIES IN EXCESS OF OTHER ASSETS - (8.2)% (19,671) ------------ NET ASSETS - 100.0% $ 240,985 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS ** Rate represents the effective yield at purchase. # Amount is less than $500. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment in Institutional Shares of underlying fund. (d) Securities were fair valued at July 31, 2007. using procedures approved by the Board of Trustees. (e) Rate reflected is an investment rate of return. (f) All or part of this security has been deposited as collateral for TBA securities. The following abbreviations are used in the Schedule of Portfolio Investments: IO - Interest Only TBA - To be announced SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 101 INTERMEDIATE BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET-BACKED SECURITIES (9.3%) Aerco, Ltd., Series N Ap-2A, Class A3, 5.78%, 7/15/25 (a) (b) $ 1,118 $ 950 Credit-Based Asset Servicing and Securitization LLC, Series 2004-CB8, Class AF3, 5.09%, 12/25/35 4,849 4,827 Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB7, Class AF4, 5.43%, 11/25/35 2,475 2,413 Credit-Based Asset Servicing and Securitization LLC, Series 2006-CB1, Class AF4, 5.44%, 1/25/36 3,025 2,963 Credit-Based Asset Servicing and Securitization LLC, Series 2006-CB2, Class AF2, 5.50%, 12/25/36 2,400 2,391 First Franklin Mortgage Loan Asset Backed Certificates, Series 2004-FF11, Class 1A2, 5.67%, 1/25/35 (a) 121 121 First Franklin Mortgage Loan Asset Backed Certificates, Series 2005-FFA, Class M3, 5.52%, 3/25/25 600 496 First Horizon Asset Back Trust, Series 2007-HE1, Class A, 5.45%, 9/25/29 (a) 2,435 2,417 Flagstar Home Equity Loan Trust, Series 2007-1A, Class AF2, 5.77%, 1/25/35 (b) 1,915 1,909 Hertz Vehicle Financing LLC, Series 2005-2A, Class A6, 5.08%, 11/25/11 (b) 1,500 1,491 Hyundai Auto Receivables Trust, Series 2006-B, Class C, 5.25%, 5/15/13 2,665 2,664 Marlin Leasing Receivables LLC, Series 2005-1A, Class A4, 4.75%, 8/15/12 (b) 3,000 2,982 New Century Home Equity Loan Trust, Series 2005-A, Class A5W, 5.29%, 8/25/35 4,000 3,713 Popular ABS Mortgage Pass-Through Trust, Series 2005-4, Class AF3, 4.98%, 9/25/35 1,580 1,564 Prestige Auto Receivables Trust, Series 2006-1A, Class A2, 5.25%, 6/17/13 (b) 2,000 2,002 Renaissance Home Equity Loan Trust, Series 2005-2, Class AF4, 4.93%, 8/25/35 2,620 2,567 Renaissance Home Equity Loan Trust, Series 2006-1, Class AF4, 6.01%, 5/25/36 1,645 1,650 Residential Asset Mortgage Products, Inc., Series 2002-RZ3, Class M1, 5.28%, 8/25/32 594 592 Residential Funding Mortgage Securities II, Inc., Series 2006-HI3, Class A4, 6.31%, 2/25/36 1,500 1,504 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET-BACKED SECURITIES, CONTINUED Residential Funding Mortgage Securities II, Inc., Series 2006-HSA1, Class A4, 5.49%, 2/25/36 (a) $ 1,500 $ 1,372 SACO I, Inc., Series 2005-WM2, Class A3, 5.69%, 7/25/35 (a) 341 341 SACO I, Inc., Series 2006-12, Class 1M1, 5.63%, 9/25/36 (a) 2,500 2,315 UPFC Auto Receivables Trust, Series 2004-A, Class A3, 3.27%, 9/15/10 590 585 Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A4, 6.57%, 5/7/27 2,840 2,944 ------------ TOTAL ASSET-BACKED SECURITIES 46,773 ------------ CORPORATE BONDS (12.3%) Alabama Power Capital Trust V, 5.50%, 10/1/42 (a) 874 873 Alesco Preferred Funding, Ltd., Series N Ap-15A, Class C1, 6.51%, 12/23/37 (a) (b) (d) 2,000 2,000 American Express Travel Related Services Co., Inc., 5.25%, 11/21/11 (b) 1,000 992 Ameriprise Financial, Inc., 5.65%, 11/15/15 1,480 1,445 Apache Corp., 5.25%, 4/15/13 1,000 984 Apache Corp., 5.63%, 1/15/17 1,225 1,203 Associated Bank NA/Green Bay WI, 5.48%, 6/2/08 (a) 5,000 5,009 Attentus CDO, Ltd., Series 2006-2A, Class A3B, 5.80%, 10/9/41 (a) (b) (d) 5,000 4,827 BAC Capital Trust XIII, 5.76%, 3/15/12 (a) (g) 2,000 1,876 Bank of America Corp., 5.63%, 10/14/16 2,250 2,206 BankAmerica Capital II, Series 2, 8.00%, 12/15/26 2,000 2,081 Goldman Sachs Group LP, 5.00%, 10/1/14 2,500 2,352 Hibernia Corp., 5.35%, 5/1/14 2,845 2,685 HSBC Finance Corp., 6.38%, 10/15/11 2,000 2,018 International Lease Finance Corp., 5.88%, 5/1/13 2,500 2,529 John Deere Capital Corp., 5.50%, 4/13/17 1,225 1,200 JPM CHASE CAPITAL XXI, Series U, 6.31%, 2/2/37 (a) 1,000 988 KeyBank NA, 4.95%, 9/15/15 2,365 2,265 Manufacturers & Traders Trust Co., 3.85%, 4/1/13 (a) (b) 1,075 1,064 MassMutual Global Funding II, 3.80%, 4/15/09 (b) 1,390 1,356 Merrill Lynch & Co., Inc., 6.05%, 5/16/16 660 651 MetLife, Inc., 5.00%, 6/15/15 1,100 1,044 CONTINUED 102 INTERMEDIATE BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS, CONTINUED Morgan Stanley, Series F, 5.76%, 9/7/10 (a) $ 900 $ 900 National City Bank, 5.25%, 12/15/16 (b) 1,340 1,269 PPG Industries, Inc., 6.50%, 11/1/07 30 30 Preferred Term Securities, Ltd./Preferred Term Securities, Inc., 7.16%, 7/3/32 (a) (b) 709 709 Preferred Term Securities, Ltd./Preferred Term Securities, Inc., 7.46%, 12/11/32 (a) (b) 1,000 1,005 Preferred Term Securities, Ltd./Preferred Term Securities, Inc., 7.36%, 5/22/33 (a) (b) (d) 1,000 1,010 Premcor Refining Group, Inc., 7.50%, 6/15/15, (Callable 6/15/08 @ 103.75) 1,500 1,548 Principal Life Global Funding I, 5.13%, 10/15/13 (b) 1,090 1,072 Public Service Electric & Gas Co., 5.00%, 8/15/14 1,200 1,149 Regions Financial Corp., 7.00%, 3/1/11 1,275 1,343 Simon Property Group LP, 5.63%, 8/15/14 1,790 1,767 Trapeza CDO I LLC, Series 2006-11A, Class A2, 5.78%, 10/10/41 (a) (b) (d) 5,000 4,971 Wachovia Corp., 5.63%, 10/15/16 2,250 2,189 Westpac Capital Trust IV, 5.26%, 3/31/16 (a) (b) (g) 1,445 1,364 ------------ TOTAL CORPORATE BONDS 61,974 ------------ FOREIGN BONDS (0.6%) Gazprom International SA, 7.20%, 2/1/20 (b) 1,922 1,946 Korea Electric Power Corp., 4.25%, 9/12/07 (b) 1,000 999 ------------ TOTAL FOREIGN BONDS 2,945 ------------ MORTGAGE-BACKED SECURITIES (43.5%) Banc of America Funding Corp., Series 2006-G, Class 3A2, 5.75%, 7/20/36 (a) 5,000 5,027 Bear Stearns Alt-A Trust, Series 2005-9, Class 21A2, 5.77%, 11/25/35 (a) 1,549 1,572 Bear Stearns Commercial Mortgage Securities, Series 2000-WF2, Class A1, 7.11%, 10/15/32 897 901 Bear Stearns Commercial Mortgage Securities, Series 2004-T16, Class A6, 4.75%, 2/13/46 3,500 3,291 Chase Commercial Mortgage Securities Corp., Series 1997-2, Class C, 6.60%, 12/19/29 2,075 2,072 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED Chase Commercial Mortgage Securities Corp., Series 1998-1, Class A2, 6.56%, 5/18/30 $ 3,080 $ 3,085 Chase Mortgage Finance Corp., Series 2006-A1, Class 2AX, IO, 0.08%, 9/25/36 (a) (d) 86,157 379 Chase Mortgage Finance Corp., Series 2006-A1, Class 4A1, 6.05%, 9/25/36 (a) 9,150 9,087 Chase Mortgage Finance Corp., Series 2006-S2, Class 2A6, 6.00%, 10/25/36 5,105 5,064 Chaseflex Trust, Series 2006-1, Class A4, 6.30%, 6/25/36 7,344 7,347 Chaseflex Trust, Series 2006-1, Class A6, 6.29%, 6/25/36 5,265 5,330 Chaseflex Trust, Series 2006-2, Class A4, 6.34%, 9/25/36 5,100 5,125 Citigroup Commercial Mortgage Trust, Series 2005-EMG, Class A3, 4.38%, 9/20/51 (b) 5,000 4,816 Commercial Mortgage Asset Trust, Series 1999-C1, Class B, 7.23%, 1/17/32 1,620 1,735 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 2,967 2,901 Crown Castle Towers LLC, Series 2005-1A, Class AFX, 4.64%, 6/15/35 (b) 4,000 3,917 Crown Castle Towers LLC, Series 2006-1A, Class E, 6.07%, 11/15/36 (b) 3,300 3,143 CS First Boston Mortgage Securities Corp., Series 2001-CK3, Class A4, 6.53%, 6/15/34 2,922 3,009 CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class C1, 6.38%, 4/15/37 1,180 1,199 Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2005-4, Class A2, 5.05%, 9/25/35 1,610 1,591 Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AB3, Class A3, 6.51%, 7/25/36 2,575 2,591 Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AB4, Class A3A1, 5.90%, 10/25/36 5,425 5,434 Deutsche Mortgage Securities, Inc., Series 2005-WF1, Class 1A1, 5.06%, 6/26/35 (a) (b) 1,513 1,500 GE Capital Commercial Mortgage Corp., Series 2000-1, Class A2, 6.50%, 1/15/33 2,561 2,624 Global Signal Trust, Series 2006-1, Class D, 6.05%, 2/15/36 (b) 3,000 2,915 CONTINUED 103 INTERMEDIATE BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED GS Mortgage Securities Corp. II, Series 2004-C1, Class B, 4.46%, 10/10/28 $ 2,740 $ 2,656 GS Mortgage Securities Corp. II, Series 2004-C1, Class C, 4.52%, 10/10/28 4,093 3,937 Homebanc Mortgage Trust, Series 2004-1, Class 2M2, 6.47%, 8/25/29 (a) 472 472 Homebanc Mortgage Trust, Series 2006-1, Class 2A1, 5.99%, 4/25/37 (a) 3,732 3,773 JP Morgan Alternative Loan Trust, Series 2005-S1, Class 1A2, 5.50%, 12/25/35 2,044 2,025 JP Morgan Alternative Loan Trust, Series 2006-A4, Class A7, 6.30%, 9/25/36 5,000 5,046 JP Morgan Alternative Loan Trust, Series 2006-A4, Class A9, 6.30%, 9/25/36 4,044 4,089 JP Morgan Alternative Loan Trust, Series 2006-A5, Class 2A6, 5.80%, 10/25/36 5,640 5,607 JP Morgan Alternative Loan Trust, Series 2006-S1, Class 1A18, 6.00%, 3/25/36 3,920 3,917 JP Morgan Alternative Loan Trust, Series 2006-S2, Class A3, 5.92%, 5/25/36 4,730 4,697 JP Morgan Alternative Loan Trust, Series 2006-S3, Class A3A, 6.00%, 8/25/36 4,529 4,510 JP Morgan Alternative Loan Trust, Series 2006-S3, Class A7, 6.24%, 8/25/36 5,245 5,303 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2001-C1, Class A3, 5.86%, 10/12/35 3,390 3,417 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-CB6, Class A2, 5.26%, 7/12/37 4,460 4,368 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-LN1, Class A2, 4.92%, 10/15/37 (a) 6,680 6,413 JP Morgan Mortgage Acquisition Corp., Series 2006-WF1, Class A4, 6.13%, 7/25/36 3,191 3,193 JP Morgan Mortgage Acquisition Corp., Series 2006-WF1, Class A5, 6.41%, 7/25/36 4,286 4,290 JP Morgan Mortgage Trust, Series 2005-A1, Class 3A4, 5.03%, 2/25/35 (a) 6,218 5,963 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.35%, 4/25/35 (a) 3,734 3,623 JP Morgan Mortgage Trust, Series 2005-A3, Class 11A1, 4.49%, 6/25/35 (a) 3,879 3,773 JP Morgan Mortgage Trust, Series 2006-A2, Class 3A2, 5.68%, 4/25/36 (a) 4,726 4,671 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED JP Morgan Mortgage Trust, Series 2006-A7, Class 3A2, 5.95%, 1/25/37 (a) (d) $ 5,075 $ 5,095 JP Morgan Mortgage Trust, Series 2007-A2, Class 3A3, 5.87%, 4/25/37 (a) 4,900 4,943 LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A4, 5.12%, 11/15/32 (a) 2,924 2,841 Morgan Stanley Capital I, Series 2005-IQ10, Class AJ, 5.29%, 9/15/42 (a) 2,759 2,642 Nomura Asset Acceptance Corp., Series 2004-AR4, Class 1A2, 4.90%, 12/25/34 (a) 1,037 1,031 Nomura Asset Acceptance Corp., Series 2005-AR1, Class 1A2, 5.34%, 2/25/35 (a) 2,056 2,049 Nomura Asset Acceptance Corp., Series 2005-AR2, Class 2A2, 5.55%, 5/25/35 (a) 1,477 1,477 Nomura Asset Acceptance Corp., Series 2005-AR3, Class 3A2, 5.65%, 7/25/35 (a) 2,146 2,153 Nomura Asset Acceptance Corp., Series 2005-AR5, Class 2A2, 5.63%, 10/25/35 (a) 1,527 1,529 Nomura Asset Acceptance Corp., Series 2006-AF1, Class 3A2, 6.62%, 6/25/36 (a) 2,697 2,748 Nomura Asset Securities Corp., Series 1998-D6, Class A2, 6.79%, 3/15/30 (a) 1,000 1,066 Nomura Asset Securities Corp., Series 1998-D6, Class A4, 7.37%, 3/15/30 (a) 1,600 1,751 Restructured Assets Certificates, Series 2006-9, Class P, 6.00%, 3/23/27 (a) (b) (d) (e) 3,250 3,250 Salomon Brothers Mortgage Securities VII, Inc., Series 2002-KEY2, Class A3, 4.87%, 3/18/36 2,270 2,202 Salomon Brothers Mortgage Securities VII, Inc., Series 2002-KEY2, Class C, 5.05%, 3/18/36 1,417 1,379 SBA CMBS Trust, Series 2006-1A, Class D, 5.85%, 11/15/36 (b) 3,100 3,010 SBA CMBS Trust, Series 2006-1A, Class E, 6.17%, 11/15/36 (b) 1,350 1,290 Squared CDO, Ltd., Series 2007-1A, Class B, 7.36%, 5/11/57 (a) (b) (d) 4,000 3,745 Suntrust Alternative Loan Trust, Series 2005-1F, Class B3, 6.07%, 12/25/35 (a) (d) 1,792 1,304 Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, Class 2A3, 4.75%, 12/25/33 (a) 2,545 2,470 ------------ TOTAL MORTGAGE-BACKED SECURITIES 219,373 ------------ CONTINUED 104 INTERMEDIATE BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES (19.5%) FANNIE MAE (2.6%) 6.25%, 1/25/08 $ 123 $ 123 5.20%, 11/20/09 2,350 2,344 5.33%, 1/29/10 1,000 999 5.50%, 11/9/11 2,345 2,345 5.65%, 4/10/13 4,675 4,671 5.50%, 12/25/20 2,707 2,683 5.18%, 8/1/34 (a) 123 121 ------------ 13,286 ------------ FEDERAL FARM CREDIT BANK (0.5%) 5.15%, 12/20/11 2,425 2,414 ------------ FEDERAL HOME LOAN BANK (1.1%) 5.73%, 12/28/09 5,000 5,006 5.13%, 11/15/10 830 828 ------------ 5,834 ------------ FEDERAL HOME LOAN BANK SYSTEM (0.4%) 5.40%, 1/25/10 2,000 1,999 ------------ FREDDIE MAC (8.2%) 5.25%, 10/6/11 2,690 2,673 5.25%, 12/14/11 2,000 1,992 5.00%, 8/15/12 2,275 2,261 4.65%, 10/10/13 1,300 1,251 4.00%, 1/15/17 3,500 3,317 6.00%, 12/15/21 4,804 4,855 6.50%, 5/15/34 (a) 1,038 1,054 5.50%, 3/15/35 2,735 2,661 5.83%, 10/1/36 (a) 2,683 2,673 6.11%, 1/1/37 (a) 5,888 5,875 6.12%, 2/1/37 (a) 5,740 5,722 5.94%, 3/1/37 (a) 6,924 6,956 ------------ 41,290 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (6.7%) 9.50%, 12/15/09 578 594 5.30%, 7/16/28 (a) 3,000 2,971 4.82%, 10/16/29 (a) 2,660 2,597 5.32%, 8/16/30 (a) 2,560 2,542 5.03%, 11/16/33 (a) 5,640 5,397 4.42%, 5/16/34 10,250 9,822 0.95%, 6/17/45, , IO (a) 10,426 548 0.52%, 3/16/46, , IO (a) 13,848 564 0.57%, 4/16/46, , IO (a) 24,770 945 0.80%, 5/16/46, , IO (a) 19,757 1,089 0.91%, 8/16/46, , IO (a) 9,912 577 1.06%, 2/16/48, , IO (a) 54,561 3,102 1.07%, 6/16/49, , IO (a) 45,500 2,997 ------------ 33,745 ------------ TOTAL U.S. GOVERNMENT AGENCIES 98,568 ------------ CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. TREASURY OBLIGATIONS (13.3%) U.S. TREASURY INFLATION PROTECTED SECURITIES (f) (1.6%) 2.00%, 1/15/14 $ 8,186 $ 7,953 ------------ U.S. TREASURY NOTES (11.7%) 4.50%, 5/15/10 15,000 14,982 4.75%, 5/31/12 13,000 13,079 4.00%, 2/15/14 7,225 6,946 4.50%, 5/15/17 24,700 24,173 ------------ 59,180 ------------ TOTAL U.S. TREASURY OBLIGATIONS 67,133 ------------ INVESTMENTS IN AFFILIATES (c) (0.7%) Fifth Third Institutional Money Market Fund 3,582,068 3,582 ------------ TOTAL INVESTMENTS IN AFFILIATES 3,582 ------------ TOTAL INVESTMENTS (COST $503,432) - 99.2% 500,348 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.8% 3,946 ------------ NET ASSETS - 100.0% $ 504,294 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund. (d) Securities were fair valued at July 31, 2007 using procedures approved by the Board of Trustees. (e) Rate reflected is an investment rate of return. (f) Treasury Inflation Protected Securities. A U.S. Treasury Note or Bond that offers protection from inflation by paying a fixed rate of interest on principal amount that is adjusted for inflation based on the Consumer Price Index. (g) Perpetual Maturity. Callable any time after first call date. Maturity date is next call date. The following abbreviation is used in the Schedule of Portfolio Investments: IO - Interest Only SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 105 SHORT TERM BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET-BACKED SECURITIES (18.2%) Banc of America Securities Auto Trust, Series 2005-WF1, Class A4, 4.08%, 4/18/10 $ 3,000 $ 2,966 Bank One Issuance Trust, Series 2004-A1, Class A1, 3.45%, 10/17/11 810 791 Bay View Auto Trust, Series 2005-LJ2, Class A4, 4.55%, 2/25/14 2,000 1,984 Capital One Auto Finance Trust, Series 2006-C, Class A3A, 5.07%, 7/15/11 2,000 1,997 CNH Equipment Trust, Series 2005-A, Class A3, 4.02%, 4/15/09 756 753 GE Capital Credit Card Master Note Trust, Series 2005-3, Class A, 4.13%, 6/15/13 2,000 1,949 GMAC Mortgage Corp. Loan Trust, Series 2004-HE2, Class A3, 4.24%, 10/25/33 (a) 4,170 4,095 GMAC Mortgage Corp. Loan Trust, Series 2005-HE2, Class A3, 4.62%, 11/25/35 2,143 2,123 GMAC Mortgage Corp. Loan Trust, Series 2006-HE2, Class A2, 6.18%, 5/25/36 3,000 3,008 Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 748 733 Harley-Davidson Motorcycle Trust, Series 2006-2, Class A2, 5.35%, 3/15/13 3,305 3,318 Hertz Vehicle Financing LLC, Series 2005-2A, Class A2, 4.93%, 2/25/10 (b) 3,375 3,361 Hyundai Auto Receivables Trust, Series 2005-A, Class A4, 4.18%, 2/15/12 3,000 2,951 Long Beach Auto Receivables Trust, Series 2005-B, Class A3, 4.41%, 5/15/10 2,043 2,036 MBNA Master Credit Card Trust, Series 1999-B, Class A, 5.90%, 8/15/11 3,000 3,040 Navistar Financial Corp. Owner Trust, Series 2003-B, Class A4, 3.25%, 10/15/10 3,056 3,030 Navistar Financial Corp. Owner Trust, Series 2003-B, Class B, 3.79%, 10/15/10 605 599 Nissan Auto Lease Trust, Series 2006-A, Class A4, 5.10%, 7/16/12 4,000 3,994 Nordstrom Private Label Credit Card Master Note Trust, Series 2007-1A, Class A, 4.92%, 5/15/13 (b) 3,000 2,985 SVO VOI Mortgage Corp., Series 2005-AA, Class A, 5.25%, 2/20/21 (b)(d) 1,223 1,205 Wachovia Auto Owner Trust, Series 2005-A, Class A4, 4.23%, 11/21/11 3,500 3,459 ------------ TOTAL ASSET-BACKED SECURITIES 50,377 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ CORPORATE BONDS (11.7%) Bear Stearns Cos., Inc. (The), 7.63%, 12/7/09 $ 2,500 $ 2,603 CenterPoint Energy Resources Corp., 6.50%, 2/1/08 1,600 1,608 General Electric Capital Corp., 5.25%, 10/27/09 6,000 6,013 Goldman Sachs Group, Inc. (The), 6.65%, 5/15/09 3,000 3,064 HSBC Bank USA NA, 3.88%, 9/15/09 3,000 2,909 HSBC Finance Corp., 4.75%, 5/15/09 3,000 2,969 International Lease Finance Corp., 4.75%, 7/1/09 3,000 2,967 Lehman Brothers Holdings, Inc., 4.25%, 1/27/10 3,000 2,937 Protective Life Secured Trusts, 3.70%, 11/24/08 1,590 1,550 Wachovia Corp., 4.38%, 6/1/10 3,000 2,929 Wells Fargo & Co., 4.20%, 1/15/10 3,000 2,934 ------------ TOTAL CORPORATE BONDS 32,483 ------------ FOREIGN BONDS (3.4%) Australian Gas Light Co., Ltd., 6.40%, 4/15/08 (b) 3,210 3,222 BP Capital Markets PLC, 4.88%, 3/15/10 3,000 2,986 DaimlerChrysler NA Holding Corp., 4.75%, 1/15/08 1,500 1,494 Korea Electric Power Corp., 4.25%, 9/12/07 (b) 810 809 Pemex Finance, Ltd., Series 1999, Class NT, 9.69%, 8/15/09 365 379 Telecom Italia Capital SA, Series A, 4.00%, 11/15/08 650 637 ------------ TOTAL FOREIGN BONDS 9,527 ------------ MORTGAGE-BACKED SECURITIES (32.3%) Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3, 4.13%, 7/10/42 2,500 2,440 Banc of America Mortgage Securities, Inc., Series 2004-F, Class 2A6, 4.14%, 7/25/34 (a) 2,500 2,453 Banc of America Mortgage Securities, Inc., Series 2004-F, Class 2A7, 4.14%, 7/25/34 (a) 3,089 3,033 Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-1, Class 13A3, 4.79%, 4/25/34 (a) 2,881 2,864 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-4, Class 2A2, 4.57%, 8/25/35 (a) 3,000 2,943 Bear Stearns Asset Backed Securities Trust, Series 2003-AC7, Class A2, 5.25%, 1/25/34 1,263 1,236 CONTINUED 106 SHORT TERM BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED Bear Stearns Commercial Mortgage Securities, Series 2000-WF2, Class A1, 7.11%, 10/15/32 $ 1,213 $ 1,219 Chase Commercial Mortgage Securities Corp., Series 1997-2, Class D, 6.60%, 12/19/29 2,400 2,398 Chase Mortgage Finance Corp., Series 2005-A1, Class 2A2, 5.24%, 12/25/35 (a) 2,780 2,763 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 1,691 1,653 Countrywide Alternative Loan Trust, Series 2005-14, Class 1A1, 3.30%, 5/25/35 (a) 1,837 1,819 Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB5, Class 4A1, 5.01%, 4/20/35 (a) 2,087 2,092 CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A2, 6.10%, 8/15/36 1,019 1,021 CS First Boston Mortgage Securities Corp., Series 2004-C3, Class A3, 4.30%, 7/15/36 2,500 2,448 GE Capital Commercial Mortgage Corp., Series 2005-C1, Class A2, 4.35%, 6/10/48 2,750 2,682 GMAC Commercial Mortgage Securities, Inc., Series 1999-C2, Class B, 7.14%, 9/15/33 3,250 3,335 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A2, 3.84%, 6/10/36 95 95 Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A2, 4.31%, 8/10/42 3,000 2,927 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 2,500 2,463 Harborview Mortgage Loan Trust, Series 2004-5, Class 2A6, 3.94%, 6/19/34 (a) 5,730 5,645 Homebanc Mortgage Trust, Series 2004-2, Class A2, 5.77%, 12/25/34 (a) 1,568 1,571 Homebanc Mortgage Trust, Series 2006-1, Class 1A1, 6.13%, 4/25/37 (a) 2,643 2,687 IMPAC Commercial Holdings, Inc., Series 1998-C1, Class D, 7.58%, 8/20/30 3,500 3,531 Indymac Index Mortgage Loan Trust, Series 2006-AR29, Class A2, 5.40%, 11/25/36 (a) 1,094 1,094 JP Morgan Alternative Loan Trust, Series 2006-S2, Class A2, 5.81%, 5/25/36 2,075 2,072 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MORTGAGE-BACKED SECURITIES, CONTINUED JP Morgan Alternative Loan Trust, Series 2006-S3, Class A2A, 5.87%, 8/25/36 $ 3,000 $ 2,987 JP Morgan Mortgage Trust, Series 2005-A1, Class 3A3, 4.90%, 2/25/35 2,496 2,458 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.35%, 4/25/35 (a) 2,268 2,200 JP Morgan Mortgage Trust, Series 2005-A3, Class 7CA1, 5.11%, 6/25/35 (a) 3,766 3,744 JP Morgan Mortgage Trust, Series 2006-A4, Class 2A2, 5.82%, 6/25/36 (a) 2,760 2,760 JP Morgan Mortgage Trust, Series 2007-A2, Class 4A1M, 5.81%, 4/25/37 (a) 2,864 2,854 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.53%, 12/25/32 (a) 354 360 Provident Funding Mortgage Loan Trust, Series 2005-2, Class 2A1A, 4.70%, 10/25/35 (a) 2,438 2,407 RAAC Series, Series 2005-SP1, Class 2A2, 5.25%, 9/25/34 2,372 2,333 Residential Funding Mortgage Securities I, Series 2007-SA1, Class 1A1, 5.76%, 2/25/37 (a) 4,225 4,242 WaMu Mortgage Pass Through Certificates, Series 2003-AR10, Class A4, 4.06%, 10/25/33 (a) 1,353 1,345 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR10, Class 2A14, 4.11%, 6/25/35 (a) 3,500 3,444 ------------ TOTAL MORTGAGE-BACKED SECURITIES 89,618 ------------ MUNICIPAL BONDS (0.2%) OHIO (0.2%) State Economic Enterprise, Series 3, 4.05%, 3/1/11 (b) 650 631 ------------ TOTAL MUNICIPAL BONDS 631 ------------ U.S. GOVERNMENT AGENCIES (25.3%) FANNIE MAE (5.5%) 4.50%, 10/15/08 5,000 4,972 5.00%, 2/25/25 4,000 3,972 4.70%, 4/1/33 (a) 2,079 2,053 5.13%, 9/1/34 (a) 2,566 2,566 4.96%, 4/1/35 (a) 1,750 1,733 ------------ 15,296 ------------ FANNIE MAE PREPAYMENT LINK NOTE (1.0%) 4.65%, 12/25/12 2,823 2,753 ------------ CONTINUED 107 SHORT TERM BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES, CONTINUED FEDERAL HOME LOAN BANK (4.2%) 4.00%, 10/27/08 $ 4,220 $ 4,170 5.00%, 9/18/09 4,500 4,507 4.75%, 10/25/10 2,900 2,858 ------------ 11,535 ------------ FREDDIE MAC (6.7%) 4.25%, 7/15/09 2,000 1,974 4.88%, 2/9/10 3,000 2,993 5.00%, 9/15/25 3,875 3,850 4.50%, 7/15/28 3,850 3,781 3.98%, 3/1/34 (a) 2,171 2,121 4.69%, 7/1/35 (a) 3,774 3,720 ------------ 18,439 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (7.9%) 2.87%, 2/16/20 4,174 4,083 6.11%, 11/16/21 310 312 3.27%, 1/16/23 2,274 2,204 5.99%, 2/16/24 (a) 1,617 1,632 3.72%, 12/16/26 3,234 3,150 4.00%, 5/16/27 2,372 2,308 4.29%, 1/16/30 2,919 2,868 4.09%, 8/16/30 2,210 2,113 3.95%, 11/16/30 3,458 3,359 ------------ 22,029 ------------ TOTAL U.S. GOVERNMENT AGENCIES 70,052 ------------ U.S. TREASURY OBLIGATIONS (5.8%) U.S. TREASURY NOTES (5.8%) 4.75%, 11/15/08 2,010 2,010 4.00%, 6/15/09 3,000 2,970 4.88%, 8/15/09 7,000 7,040 4.50%, 5/15/10 4,000 3,995 ------------ 16,015 ------------ TOTAL U.S. TREASURY OBLIGATIONS 16,015 ------------ CONTINUED SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (c) (4.3%) Fifth Third Institutional Money Market Fund 11,840,381 $ 11,840 ------------ TOTAL INVESTMENTS IN AFFILIATES 11,840 ------------ TOTAL INVESTMENTS (COST $282,345) - 101.2% 280,543 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.2)% (3,331) ------------ NET ASSETS - 100.0% $ 277,212 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund. (d) Securities were fair valued at July 31, 2007 using procedures approved by the Board of Trustees. SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 108 U.S. GOVERNMENT BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. GOVERNMENT AGENCIES (78.6%) FANNIE MAE (11.0%) 6.25%, 1/25/08 $ 252 $ 251 4.32%, 1/1/35 (a) 2,106 2,075 5.57%, 8/25/44 (a) 1,015 1,016 ------------ 3,342 ------------ FANNIE MAE PREPAYMENT LINK NOTE (4.9%) 4.62%, 4/25/10 948 935 4.40%, 12/25/12 592 573 ------------ 1,508 ------------ FEDERAL HOME LOAN BANK SYSTEM (5.0%) 4.75%, 10/25/10 798 786 4.84%, 1/25/12 733 719 ------------ 1,505 ------------ FREDDIE MAC (24.8%) 5.50%, 7/15/10 931 931 4.00%, 12/15/21 198 197 1.88%, 7/15/32, IO (a) 11,411 667 5.00%, 1/15/34 1,000 929 6.50%, 5/15/34 (a) 989 1,003 5.50%, 7/15/35 1,977 1,851 5.87%, 9/15/36 (a) 1,964 1,956 ------------ 7,534 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (21.9%) 3.59%, 11/16/17 353 346 3.96%, 9/16/21 645 633 3.27%, 1/16/23 687 666 4.39%, 5/16/23 785 774 5.50%, 2/20/31 2,000 2,000 5.50%, 12/20/32 1,000 964 5.50%, 11/20/33 1,000 949 0.95%, 6/17/45, IO (a) 2,843 149 1.06%, 2/16/48, IO (a) 3,307 188 ------------ 6,669 ------------ SMALL BUSINESS ADMINISTRATION (11.0%) 4.94%, 8/10/15 3,419 3,331 ------------ TOTAL U.S. GOVERNMENT AGENCIES 23,889 ------------ U.S. TREASURY OBLIGATIONS (1.0%) U.S. TREASURY NOTES (1.0%) 4.50%, 11/15/10 300 300 ------------ TOTAL U.S. TREASURY OBLIGATIONS 300 ------------ CONTINUED SHARES VALUE ------------ ------------ INVESTMENTS IN AFFILIATES (b) (20.1%) Fifth Third Institutional Government Money Market Fund 6,112,940 $ 6,113 ------------ TOTAL INVESTMENTS IN AFFILIATES 6,113 ------------ TOTAL INVESTMENTS (COST $30,771) - 99.7% 30,302 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 88 ------------ NET ASSETS - 100.0% $ 30,390 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Investment is in Institutional Shares of underlying fund. The following abbreviation is used in the Schedule of Portfolio Investments: IO - Interest Only SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 109 MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS (84.8%) ARIZONA (3.5%) Mesa Street and Highway, FSA, 5.25%, 7/1/23 $ 600 $ 667 Tucson Water, MBIA, 4.25%, 7/1/21, (Callable 7/1/16 @ 100) 1,000 998 ------------ 1,665 ------------ CALIFORNIA (12.6%) California Polytechnical Pomona Foundation, Inc., MBIA, 5.50%, 2/1/20, (Prerefunded 2/1/11 @ 101) 265 283 La Canada Unified School District, GO, Series A, MBIA, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 1,000 1,084 Long Beach Community College District, GO, Series B, FGIC, 5.00%, 5/1/30, (Callable 5/1/15 @ 100) 1,000 1,038 Los Angeles Unified School District, GO, Series A-2, FGIC, 4.50%, 7/1/22, (Callable 7/1/17 @ 100) 1,000 1,005 Placentia-Yorba Linda Unified School District, GO, Series B, FGIC, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 1,000 1,077 Sacramento County Sanitation District, Series A, 6.00%, 12/1/15, (Callable 12/1/10 @ 101) 250 269 State Public Works Board, FGIC, 5.25%, 11/1/19 1,020 1,119 ------------ 5,875 ------------ COLORADO (4.6%) Denver City and County Airport, Series D, AMT, FSA, 5.00%, 11/15/08 1,020 1,035 Douglas County School District No Re-1, GO, FGIC, 5.75%, 12/15/21, (Callable 12/15/14 @ 100) 1,000 1,099 ------------ 2,134 ------------ FLORIDA (2.3%) Volusia County School Board, CP, Series A, FSA, 5.00%, 8/1/19, (Callable 8/1/15 @ 100) 1,010 1,055 ------------ ILLINOIS (6.8%) Chicago Metropolitan Water Reclamation District-Greater Chicago Capital Improvements, GO, ETM, 7.25%, 12/1/12 500 580 City of Chicago Single Family Mortgage, Series A, AMT, GNMA-FNMA, 4.70%, 10/1/17, (Callable 4/1/09 @ 102) 145 146 Development Finance Authority, Elmhurst Community School, FSA, 6.38%, 1/1/17, (Prerefunded 1/1/11 @ 100) 1,700 1,837 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED ILLINOIS, CONTINUED Finance Authority Metropolis Project, 5.00%, 12/1/14, (Callable 12/1/13 @ 100) $ 300 $ 307 State of Illinois, GO, FGIC, 5.88%, 10/1/17, (Callable 10/1/09 @ 100) 300 312 ------------ 3,182 ------------ IOWA (4.7%) Finance Authority, Drake University Project, MBIA, 6.50%, 12/1/11 2,055 2,207 ------------ KANSAS (3.9%) Geary County Unified School District No 475, GO, MBIA, 5.25%, 9/1/17, (Callable 9/1/15 @ 100) 1,675 1,823 ------------ LOUISIANA (2.3%) State Citizens Property Insurance Corp., Series B, AMBAC, 5.00%, 6/1/18, (Callable 6/1/16 @ 100) 1,000 1,052 ------------ MICHIGAN (7.8%) Detroit Water Supply System, Series A, FSA, 5.00%, 7/1/16 1,000 1,068 Higher Education Student Loan Authority, AMT, Series XII-W, AMBAC, 4.75%, 3/1/09 1,000 1,013 State Hospital Finance Authority, Henry Ford Health System, 5.00%, 11/15/20, (Callable 11/15/16 @ 100) 500 514 Strategic Fund, Hope Network Project, Series B, 5.13%, 9/1/13, (LOC: First of America Bank), (Callable 9/1/08 @ 102) 1,000 1,031 ------------ 3,626 ------------ MINNESOTA (2.2%) State Municipal Power Agency, 5.00%, 10/1/30, (Callable 10/1/15 @ 100) 1,000 1,023 ------------ NEBRASKA (3.4%) City of Omaha, GO, Series A, ETM, 6.50%, 12/1/13 1,365 1,563 ------------ NEW MEXICO (1.8%) Mortgage Finance Authority, Single Family Mortgage, AMT, GNMA-FNMA-FHLMC, 5.50%, 7/1/36, (Callable 1/1/15 @ 102) (a) 765 819 ------------ NEW YORK (2.2%) State Housing Finance Agency, Economic Development and Housing, Series A, 5.00%, 9/15/23, (Callable 9/15/15 @ 100) 1,000 1,045 ------------ CONTINUED 110 MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED OHIO (5.9%) County of Cuyahoga Capital Improvements, GO, 5.25%, 12/1/18, (Callable 12/1/14 @ 100) $ 1,500 $ 1,610 State of Ohio, Common Schools, GO, Series D, 5.50%, 9/15/19 1,000 1,120 ------------ 2,730 ------------ OKLAHOMA (1.7%) Tulsa International Airport, Improvement Trust, Series B, AMT, FGIC, 5.50%, 6/1/10 770 787 ------------ OREGON (2.3%) Sunrise Water Authority, FSA, 5.25%, 3/1/24, (Callable 3/1/14 @ 100) 1,000 1,062 ------------ PENNSYLVANIA (5.7%) Central Dauphin School District, GO, MBIA, 6.75%, 2/1/24, (Prerefunded 2/1/16 @ 100) 1,000 1,194 Higher Educational Facilities Authority, Widner University, 3.85%, 7/15/13 430 411 Lancaster Higher Education Authority, Franklin and Marshall College, 5.00%, 4/15/25, (Callable 4/15/16 @ 100) 1,000 1,038 ------------ 2,643 ------------ PUERTO RICO (4.5%) Commonwealth of Puerto Rico, GO, Series A, 5.00%, 7/1/30, (Mandatory Put 7/1/12 @ 100) (a) 1,000 1,033 Public Buildings Authority, Series I, 5.50%, 7/1/23, (Callable 7/1/14 @ 100) 1,000 1,071 ------------ 2,104 ------------ TENNESSEE (2.2%) Energy Acquisition Corp., Series A, 5.00%, 9/1/15 1,000 1,032 ------------ TEXAS (2.2%) State Public Finance Authority, Series A, ACA, 5.00%, 2/15/28, (Callable 2/15/14 @ 100) 1,000 1,005 ------------ WASHINGTON (2.2%) Metropolitan Park District of Tacoma, GO, FGIC, 5.00%, 12/1/22, (Callable 12/1/15 @ 100) 1,000 1,041 ------------ TOTAL MUNICIPAL BONDS 39,473 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL DEMAND NOTES(c) (13.5%) COLORADO (4.5%) National Jewish Educational & Cultural Facilities Authority, 3.70%, 8/1/07, (LOC: National City Bank) (a) $ 2,100 $ 2,100 ------------ KENTUCKY (0.4%) Shelby County Lease Program, Series A, 3.70%, 8/1/07, (LOC: U.S. Bank NA) (a) 200 200 ------------ NEW MEXICO (3.4%) Farmington Pollution Control Revenue, Series C, AMT, 3.69%, 8/1/07, (LOC: Barclays Bank PLC) (a) 1,600 1,600 ------------ NORTH CAROLINA (1.7%) Capital Facilities Finance Agency, AMT, 3.75%, 8/1/07, (LOC: SunTrust Bank) (a) 800 800 ------------ OHIO (2.6%) Air Quality Development Authority, Pollution Control, AMT, 3.70%, 8/1/07, (LOC: Wachovia Bank NA) (a) 1,200 1,200 ------------ SOUTH DAKOTA (0.9%) County of Lawrence Solid Waste Disposal, Series A, AMT, 3.73%, 8/1/07, (LOC: JP Morgan Chase Bank) (a) 400 400 ------------ TOTAL MUNICIPAL DEMAND NOTES 6,300 ------------ SHARES ------------ MONEY MARKETS(b) (0.5%) AIM TFIT Tax-Free Cash Reserve Portfolio 108 --# Dreyfus Tax Exempt Cash Management Fund 181 --# Goldman Sachs Financial Square Tax-Free Money Market Fund 228,862 230 Merrill Lynch Institutional Tax-Exempt Fund 403 --# ------------ TOTAL MONEY MARKETS 230 ------------ TOTAL INVESTMENTS (COST $45,245) - 98.8% 46,003 OTHER ASSETS IN EXCESS OF LIABILITIES - 1.2% 541 ------------ NET ASSETS - 100.0% $ 46,544 ============ CONTINUED 111 MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS # Amount is less than $500. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Investment is in Institutional Shares of underlying fund/portfolio. (c) Maturity date is next call date. The following abbreviations are used in the Schedule of Portfolio Investments: ACA - American Capital Access Holding Ltd. AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax Paper CP - Certificates of Participation ETM - Escrowed to Maturity FGIC - Financial Guaranty Insurance Co. FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GNMA - Government National Mortgage Association GO - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. INTERMEDIATE MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS (97.1%) ALABAMA (4.9%) Birmingham Baptist Medical Centers Special Care Facilities Financing Authority, Series A, 5.00%, 11/15/14 $ 4,000 $ 4,080 County of Mobile, GO, FSA, 5.25%, 8/1/17, (Callable 8/1/14 @ 100) (c) 3,080 3,317 ------------ 7,397 ------------ ALASKA (1.3%) State of Alaska, Sport Fishing, CIFG, 4.25%, 4/1/15 1,000 1,009 State of Alaska, Sport Fishing, CIFG, 4.38%, 4/1/16 1,000 1,015 ------------ 2,024 ------------ ARIZONA (5.2%) City of Tempe Performing Arts Center, AMBAC, 5.25%, 7/1/17, (Callable 7/1/14 @ 100) (c) 2,000 2,153 Health Facilities Authority, Phoenix Children's Hospital, 4.46%, 2/1/42, (Mandatory Put 2/2/15 @ 100) (a) 1,000 1,010 Mesa Street and Highway, FGIC, 6.25%, 7/1/12 1,000 1,105 Mesa Street and Highway, FGIC, 6.25%, 7/1/13, (Prerefunded 7/1/11 @ 100) 1,000 1,088 Pinal County Industrial Development Authority, Florence West Prison LLC Project, ACA, 5.25%, 10/1/12 220 228 Tucson Street and Highway, Series 1994-E, FGIC, 6.75%, 7/1/13 2,000 2,299 ------------ 7,883 ------------ ARKANSAS (0.7%) University of Arkansas, FGIC, 5.00%, 3/1/16 1,000 1,064 ------------ CALIFORNIA (2.3%) Chaffey Community College District, GO, Series C, MBIA, 5.42%, 6/1/16 ** 750 518 La Canada Unified School District, GO, Series A, MBIA, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 375 407 Placentia-Yorba Linda Unified School District, GO, Series B, FGIC, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 675 727 State of California, GO, 5.00%, 3/1/21, (Callable 3/1/16 @ 100) 1,725 1,797 ------------ 3,449 ------------ COLORADO (4.6%) El Paso County School District No 38, GO, 6.38%, 12/1/18, (Prerefunded 12/1/10 @ 100) 1,005 1,085 State Department of Corrections, State Penitentiary II Project, CP, AMBAC, 5.00%, 3/1/17, (Callable 3/1/16 @ 100) 4,000 4,249 CONTINUED 112 INTERMEDIATE MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED COLORADO, CONTINUED Summit County School District No Re001, GO, FSA, 5.75%, 12/1/12, (Callable 12/1/11 @ 100) $ 1,465 $ 1,579 ------------ 6,913 ------------ FLORIDA (0.3%) City of Pembroke Pines, GO, MBIA, 4.00%, 9/1/15 185 185 City of Pembroke Pines, GO, MBIA, 4.13%, 9/1/16 250 251 ------------ 436 ------------ HAWAII (2.0%) State of Hawaii Airports, Series B, AMT, FGIC, 8.00%, 7/1/10 2,000 2,219 State of Hawaii Highways, FSA, 5.50%, 7/1/10 765 800 ------------ 3,019 ------------ ILLINOIS (4.2%) Chicago Metropolitan Water Reclamation District-Greater Chicago Capital Improvements, GO, ETM, 5.50%, 12/1/10 3,000 3,158 Educational Facilities Authority, The Art Institute of Chicago, 4.13%, 3/1/30, (Mandatory Put 3/1/13 @ 100) (a) 1,000 989 Finance Authority, Depaul University, Series C, 5.00%, 10/1/07 200 200 Finance Authority, Metropolis Project, 4.75%, 12/1/10 200 202 Finance Authority, Metropolis Project, 5.00%, 12/1/11 250 255 Finance Authority, Metropolis Project, 5.00%, 12/1/12 275 281 Finance Authority, Metropolis Project, 5.00%, 12/1/13 275 282 Finance Authority, Metropolis Project, AMBAC, 4.30%, 6/1/35, (Mandatory Put 6/1/16 @100) (a) 1,000 1,005 ------------ 6,372 ------------ INDIANA (5.6%) Fort Wayne International Airport Building Corp., Series B, AMT, XLCA, 5.00%, 7/1/12 1,615 1,676 Fort Wayne International Airport Building Corp., Series B, AMT, XLCA, 5.00%, 7/1/13 1,695 1,763 Health & Educational Facilities Financing Authority, Clarian Health Obligation Group, 5.00%, 2/15/16 500 515 Health & Educational Facilities Financing Authority, Clarian Health Obligation Group, 5.00%, 2/15/19, (Callable 2/15/16 @ 100) 1,000 1,022 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED INDIANA, CONTINUED Municipal Power Supply Agency, Series B, MBIA, 6.00%, 1/1/13 $ 3,000 $ 3,300 State Finance Authority, Series A, 5.00%, 2/1/15 250 266 ------------ 8,542 ------------ IOWA (0.1%) Iowa State University, Science and Technology, 3.75%, 7/1/10 140 140 ------------ KENTUCKY (1.7%) Area Development Districts, City of Versailles, CP, Series C, ETM, 2.70%, 12/1/08 250 244 Area Development Districts, City of Versailles, CP, Series C, ETM, 3.00%, 12/1/09 255 247 Area Development Districts, Lease Acquisition, 3.00%, 6/1/09, (LOC: Wachovia Bank NA) 470 458 Housing Corp., Series A, AMT, 3.45%, 1/1/10 275 272 Kenton County Airport Board, AMT, MBIA, 5.00%, 3/1/10 730 748 Munfordville Industrial Development, Louisville Bedding Co. Project, AMT, 3.10%, 6/1/08, (LOC: Bank One NA) 300 297 Munfordville Industrial Development, Louisville Bedding Co. Project, AMT, 3.50%, 6/1/09, (LOC: Bank One NA) 310 304 ------------ 2,570 ------------ LOUISIANA (3.0%) Parish of East Baton Rouge, Series A, FSA, 5.00%, 2/1/18, (Callable 2/1/16 @ 100) 3,000 3,163 Public Facilities Authority, Pennington Medical Foundation Project, 5.00%, 7/1/16 1,000 1,027 State Citizens Property Insurance Corp., Series B, AMBAC, 5.00%, 6/1/18, (Callable 6/1/16 @ 100) 400 421 ------------ 4,611 ------------ MICHIGAN (14.3%) Detroit Water Supply System, Series A, FSA, 5.00%, 7/1/16 500 534 Higher Education Facilities Authority, Hope College Project, 4.50%, 10/1/07 250 250 Higher Education Facilities Authority, Hope College Project, 4.70%, 10/1/09 200 203 Higher Education Facilities Authority, Hope College Project, 4.80%, 10/1/10, (Callable 10/1/09 @ 100) 590 596 CONTINUED 113 INTERMEDIATE MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Higher Education Student Loan Authority, AMT, Series XVII-I, AMBAC, 3.95%, 3/1/11 $ 1,000 $ 980 Kent Hospital Finance Authority, Spectrum Health, Series A, 5.50%, 1/15/13, (Prerefunded 7/15/11 @ 101) 125 133 Kent Hospital Finance Authority, Spectrum Health, Series B, 5.00%, 7/15/11 2,275 2,347 Montague Public School District, GO, 5.50%, 5/1/12, (Callable 11/1/11 @ 100) 430 458 Montague Public School District, GO, 5.50%, 5/1/12, (Prerefunded 11/1/11 @ 100) 575 612 State Building Authority, Police Communications, ETM, 5.50%, 10/1/12 350 376 State Building Authority, Series I, AMBAC, 5.00%, 10/15/29, (Mandatory Put 10/15/11 @ 100) (a) 1,500 1,562 State Hospital Finance Authority, Crittenton Hospital, Series A, 4.35%, 3/1/09 500 502 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.25%, 11/15/08 1,125 1,145 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.25%, 11/15/09 1,165 1,192 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.00%, 11/15/15 500 517 State Hospital Finance Authority, Henry Ford Health System, 5.00%, 11/15/18, (Callable 11/15/16 @ 100) 500 516 State Hospital Finance Authority, Holland Community Hospital, Series A, 5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505 522 State Hospital Finance Authority, Marquette General Hospital, 5.00%, 5/15/13 1,505 1,536 State Hospital Finance Authority, Oakwood Healthcare System, 5.00%, 7/15/15 500 515 State Housing Development Authority, Multi-Family, AMT, GNMA, 4.15%, 4/20/11 320 319 State Housing Development Authority, Multi-Family, AMT, GNMA, 4.40%, 4/20/13 175 175 State Housing Development Authority, Series A, AMT, 3.95%, 12/1/12 660 653 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED State of Michigan, Trunk Line, Series A, 5.25%, 11/1/13 $ 600 $ 642 Strategic Fund, International Project, 4.75%, 8/1/11 (c) 2,240 2,275 Strategic Fund, International Project, 5.00%, 8/1/13 820 846 Strategic Fund, Solid Waste Management Project, AMT, 4.63%, 12/1/12 1,000 996 Wyandotte Electric, Series A, AMT, MBIA, 5.00%, 10/1/13 600 622 Wyandotte Electric, Series A, AMT, MBIA, 4.50%, 10/1/14 600 605 ------------ 21,629 ------------ MINNESOTA (2.9%) Housing Finance Agency, Series A, AMT, 3.40%, 7/1/12 (a) 1,335 1,272 Housing Finance Agency, Series F, AMT, 4.55%, 7/1/12, (Callable 7/1/11 @ 100) 1,130 1,133 St Paul Housing & Redevelopment Authority, Smith Avenue Transit Center, 3.50%, 6/1/12, (Callable 6/1/10 @ 100) 2,000 1,946 ------------ 4,351 ------------ MISSOURI (0.2%) City of Brentwood, Brentwood Square Project, 4.13%, 5/1/11 245 245 ------------ NEBRASKA (1.4%) Central Plains Energy Project, Series A, 5.00%, 12/1/15 1,000 1,033 Investment Finance Authority, Single Family Housing, Series C, AMT, 3.75%, 9/1/11 235 231 Investment Finance Authority, Single Family Housing, Series C, AMT, 3.85%, 3/1/12 140 137 Investment Finance Authority, Single Family Mortgage, Series D, AMT, GNMA-FNMA-FHLMC, 4.10%, 9/1/10 275 271 Investment Finance Authority, Single Family Mortgage, Series D, AMT, GNMA-FNMA-FHLMC, 4.25%, 9/1/11 395 393 ------------ 2,065 ------------ NEVADA (1.0%) County of Clark, GO, FSA, 4.50%, 6/1/17, (Callable 6/1/16 @ 100) 1,325 1,361 Douglas County, Solid Waste Disposal, GO, AMT, MBIA, 3.00%, 12/1/07 100 100 Douglas County, Solid Waste Disposal, GO, AMT, MBIA, 3.75%, 12/1/09 100 100 ------------ 1,561 ------------ CONTINUED 114 INTERMEDIATE MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED NEW JERSEY (2.5%) State Turnpike Authority, Series A, ETM, MBIA, 6.00%, 1/1/13 $ 1,925 $ 2,122 State Turnpike Authority, Series A, MBIA, 6.00%, 1/1/13 575 633 Transportation Trust Fund Authority, Series A, 5.25%, 12/15/19 1,000 1,089 ------------ 3,844 ------------ NEW MEXICO (3.0%) Mortgage Finance Authority, Single Family Mortgage, AMT, GNMA-FNMA-FHLMC, 4.05%, 7/1/26, (Callable 7/1/15 @ 100) 650 649 Mortgage Finance Authority, Single Family Mortgage, AMT, GNMA-FNMA-FHLMC, 5.50%, 7/1/36, (Callable 1/1/15 @ 102) (a) 815 872 Mortgage Finance Authority, Single Family Mortgage, Series A2, Class I, AMT, GNMA-FNMA-FHLMC, 3.90%, 1/1/19, (Callable 1/1/16 @ 100) 450 450 Mortgage Finance Authority, Single Family Mortgage, Series A2, Class I, AMT, GNMA-FNMA-FHLMC, 4.40%, 1/1/27, (Callable 1/1/16 @ 100) 2,000 1,992 Taos County, Educational Improvements, ETM, 3.88%, 10/1/11 565 564 ------------ 4,527 ------------ OHIO (7.0%) American Municipal Power-Ohio, Inc., Series A, W/I, 5.00%, 2/1/12 3,000 3,094 Berea, GO, 5.13%, 12/1/13 935 959 County of Cuyahoga Capital Improvements, GO, 5.25%, 12/1/18, (Callable 12/1/14 @ 100) 915 982 Housing Finance Agency, Residential Mortgage, AMT, GNMA-FNMA, 3.55%, 3/1/10 1,000 984 Housing Finance Agency, Residential Mortgage, AMT, GNMA-FNMA, 3.70%, 3/1/11 1,000 985 Housing Finance Agency, Residential Mortgage, AMT, GNMA-FNMA, 4.00%, 3/1/14 500 494 State Economic Enterprise, Series 3, AMT, 4.08%, 6/1/13 465 460 State of Ohio, Common Schools, GO, Series D, 5.50%, 9/15/19 1,200 1,343 University of Cincinnati, Series A, FSA, 5.00%, 6/1/20, (Callable 6/1/16 @ 100) 1,175 1,241 ------------ 10,542 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED OKLAHOMA (0.3%) Housing Finance Agency, Single Family Housing, AMT, GNMA-FNMA- FHLMC, 4.25%, 9/1/25, (Callable 9/1/15 @ 100) $ 505 $ 504 ------------ OREGON (4.8%) Clackamas County School Distrist No 62C Oregon City, GO, FSA, 5.00%, 6/15/16, (Callable 6/15/14 @ 100) 5,020 5,309 State Department of Transportation, Series A, 5.25%, 11/15/16, (Prerefunded 11/15/14 @ 100) 1,775 1,919 ------------ 7,228 ------------ PENNSYLVANIA (1.9%) Allegheny County Airport Authority, AMT, FGIC, 5.00%, 1/1/16 1,000 1,045 Higher Educational Facilties Authority, Widener University, 3.60%, 7/15/11 250 240 Higher Educational Facilties Authority, Widener University, 3.75%, 7/15/12 405 388 Lehigh Northampton Airport Authority, AMT, MBIA, 5.00%, 1/1/19, (Callable 1/1/15 @ 100) 1,175 1,212 ------------ 2,885 ------------ PUERTO RICO (3.1%) Commonwealth of Puerto Rico, GO, Series A, 5.25%, 7/1/22, (Callable 7/1/16 @ 100) 1,000 1,061 Commonwealth of Puerto Rico, GO, Series A, 5.00%, 7/1/30, (Mandatory Put 7/1/12 @ 100) (a) 2,000 2,067 Government Development Bank, Series C, AMT, 5.25%, 1/1/15 1,500 1,576 ------------ 4,704 ------------ RHODE ISLAND (1.8%) Depositors Economic Protection Corp., Series A, ETM, MBIA, 5.88%, 8/1/11 2,535 2,708 ------------ SOUTH CAROLINA (0.6%) Anderson County School District No 2, GO, Series B, 6.00%, 3/1/13, (Prerefunded 3/1/10 @ 101) 890 946 ------------ TENNESSEE (3.8%) Energy Acquisition Corp., Series A, 5.00%, 9/1/15 2,000 2,064 Housing Development Agency, Series A, 4.00%, 7/1/10 1,100 1,097 Metropolitan Nashville Airport Authority, Series C, AMT, FGIC, 5.38%, 7/1/14, (Callable 7/1/08 @ 102) 2,570 2,649 ------------ 5,810 ------------ CONTINUED 115 INTERMEDIATE MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED TEXAS (5.5%) Aldine Independent School District, GO, PSF, W/I, 5.00%, 2/15/18, (Callable 2/15/17 @ 100) $ 2,400 $ 2,544 Dallas-Fort Worth International Airport Facilities Improvement Corp., AMT, W/I, XLCA, 5.00%, 11/1/19, (Callable 11/1/14 @ 100) 2,500 2,570 Dallas-Fort Worth International Airport Facilities Improvement Corp., Series A, AMT, XLCA, 5.00%, 11/1/15, (Callable 11/1/09 @ 100) 2,000 2,032 Municipal Power Agency, AMBAC, 4.00%, 9/1/12, (Callable 9/1/07 @ 100) 500 500 White Settlement Independent School District, GO, PSF, 5.35%, 8/15/15 ** 1,000 711 ------------ 8,357 ------------ VIRGINIA (1.4%) City of Richmond, GO, FGIC, 5.38%, 7/15/13, (Prerefunded 7/15/11 @ 101) 2,000 2,132 ------------ WASHINGTON (5.7%) Energy Northwest Washington Electric, 5.50%, 7/1/15 3,190 3,494 Grant County Public Utility District No 2 Priest Rapids, Series H, FSA, 5.00%, 1/1/11 (c) 2,485 2,575 King County School District No 415 Kent, GO, Series A, 5.55%, 12/1/11 2,000 2,128 Yakima County, GO, AMBAC, 5.25%, 12/1/16, (Callable 12/1/12 @ 100) 425 449 ------------ 8,646 ------------ TOTAL MUNICIPAL BONDS 147,104 ------------ MUNICIPAL DEMAND NOTES(d) (7.1%) FLORIDA (0.1%) Alachua County Health Facilities Authority, 3.70%, 8/1/07, (LOC: Suntrust Bank) (a) 200 200 ------------ KENTUCKY (0.7%) Breckinridge County Lease Program, 3.70%, 8/1/07, (LOC: U.S. Bank NA) (a) 640 640 Economic Development Finance Authority, Republic Services, Inc. Project, AMT, 3.68%, 8/2/07, (LOC: Bank One NA) (a) 400 400 ------------ 1,040 ------------ MICHIGAN (0.2%) University of Michigan Hospital, Series A, 3.69%, 8/1/07 (a) 300 300 ------------ CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL DEMAND NOTES, CONTINUED NEW MEXICO (2.0%) Farmington Pollution Control Revenue, Series C, AMT, 3.69%, 8/1/07, (LOC: Barclays Bank PLC) (a) $ 3,000 $ 3,000 ------------ OHIO (0.7%) Air Quality Development Authority, Pollution Control, 3.70%, 8/1/07, (LOC: Wachovia Bank NA) (a) 200 200 Air Quality Development Authority, Pollution Control, AMT, 3.70%, 8/1/07, (LOC: Wachovia Bank NA) (a) 950 950 ------------ 1,150 ------------ OREGON (1.7%) State of Oregon, Newsprint Project, Series 197, AMT, 3.75%, 8/1/07, (LOC: Toronto Dominion Bank (The)) (a) 2,600 2,600 ------------ SOUTH DAKOTA (0.8%) County of Lawrence Solid Waste Disposal, Series A, AMT, 3.73%, 8/1/07, (LOC: JP Morgan Chase Bank) (a) 1,200 1,200 ------------ TENNESSEE (0.9%) Clarksville Public Building Authority, 3.67%, 8/1/07, (LOC: Bank of America NA) (a) 1,300 1,300 ------------ TOTAL MUNICIPAL DEMAND NOTES 10,790 ------------ SHARES ------------ MONEY MARKETS (b) (0.2%) AIM TFIT Tax-Free Cash Reserve Portfolio 108 --# Dreyfus Tax Exempt Cash Management 605 1 Goldman Sachs Financial Square Tax-Free Money Market Fund 356,352 356 Merrill Lynch Institutional Tax-Exempt Fund 78 --# ------------ TOTAL MONEY MARKETS 357 ------------ TOTAL INVESTMENTS (COST $156,610) - 104.4% 158,251 LIABILITIES IN EXCESS OF OTHER ASSETS - (4.4)% (6,738) ------------ NET ASSETS - 100.0% $ 151,513 ============ CONTINUED 116 INTERMEDIATE MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS ** Rate represents the effective yield at purchase. # Amount is less than $500. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Investment is in Institutional Shares of underlying fund/portfolio. (c) All or part of this security has been designated as collateral for when issued or delayed delivery transactions. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Portfolio Investments: ACA - American Capital Access Holding Ltd. AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax Paper CIFG - CDC IXIS Financial Guaranty Services, Inc. CP - Certificates of Participation ETM - Escrowed to Maturity FGIC - Financial Guaranty Insurance Co. FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GNMA - Government National Mortgage Association GO - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance PSF - Public School Fund W/I - When Issued XLCA - XL Capital Assurance SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. OHIO MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS (100.6%) COLORADO (1.7%) Denver City & County Airport System, Series A, FGIC, 5.00%, 11/15/19, (Callable 11/15/16 @ 100) $ 1,765 $ 1,860 ------------ OHIO (92.5%) Akron Bath Copley Joint Township Hospital District, Akron General Health System, Series A, 5.00%, 1/1/14 200 206 Akron Bath Copley Joint Township Hospital District, Akron General Health System, Series A, 5.00%, 1/1/15 320 330 Akron Bath Copley Joint Township Hospital District, Summa Health System, Series A, RADIAN, 5.25%, 11/15/16, (Callable 11/15/14 @ 100) (c) 1,000 1,050 American Municipal Power-Ohio, Inc., AMBAC, 5.25%, 1/1/11 1,825 1,909 American Municipal Power-Ohio, Inc., Series A, WI, 5.00%, 2/1/11 2,000 2,050 Beavercreek Local School District, GO, FGIC, 6.60%, 12/1/15 1,500 1,713 Butler County, Middletown Hospital, 4.75%, 11/15/18, (Callable 11/15/08 @ 101) 1,180 1,158 Cincinnati City School District, Classroom Construction and Improvements, GO, FGIC, 5.00%, 12/1/17 1,000 1,076 Cincinnati City School District, Classroom Facilities Construction and Improvements, GO, FSA, 5.25%, 12/1/14, (Prerefunded 12/1/13 @ 100) (c) 3,000 3,227 Cincinnati City School District, School Improvement Project, CP, FSA, 5.00%, 12/15/22, (Callable 12/15/16 @ 100) 1,350 1,418 City of Cleveland, GO, AMBAC, 5.25%, 12/1/17, (Callable 12/1/14 @ 100) 1,125 1,211 County of Cuyahoga Capital Improvements, GO, 5.25%, 12/1/18, (Callable 12/1/14 @ 100) 2,000 2,147 County of Cuyahoga Jail Facilities, GO, MBIA-IBC, 5.25%, 10/1/13 3,000 3,130 County of Erie Hospital Facilities, Firelands Regional Medical Center, Series A, 5.00%, 8/15/08 400 402 County of Erie Hospital Facilities, Firelands Regional Medical Center, Series A, 5.50%, 8/15/12 250 260 County of Hamilton Hospital Facilities, Cincinnati Children's Hospital, FGIC, 4.50%, 5/15/14 1,510 1,552 CONTINUED 117 OHIO MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED OHIO, CONTINUED County of Lucas, GO, AMBAC-TCRS, 6.65%, 12/1/12, (Callable 12/1/07 @ 100) $ 115 $ 116 Dayton-Montgomery County Port Authority, Series A, AMT, 4.75%, 11/15/15 665 669 Dayton-Montgomery County Port Authority, Parking Garage Project, Series A, 5.00%, 11/15/17, (Callable 5/15/14 @ 100) 930 937 Franklin County, American Chemical Society Project, 5.50%, 10/1/12, (Callable 10/1/09 @ 101) 2,270 2,351 Franklin County, Online Computer Library Center, 5.00%, 4/15/10 2,270 2,311 Franklin County, Trinity Health Credit, 5.00%, 6/1/13 475 495 Housing Finance Agency, AMT, 3.95%, 9/1/08 260 260 Housing Finance Agency, AMT, 4.35%, 9/1/10 170 170 Housing Finance Agency, AMT, 4.55%, 9/1/11 170 171 Housing Finance Agency, AMT, GNMA, 3.65%, 9/1/11 650 627 Housing Finance Agency, AMT, GNMA-FNMA, 3.90%, 3/1/13 1,000 989 Housing Finance Agency, AMT, GNMA, 3.30%, 9/1/30, (Callable 3/1/13 @ 100) 820 803 Housing Finance Agency, Series C, AMT, GNMA, 4.63%, 9/1/31, (Callable 1/1/11 @ 100) 1,040 1,043 Kettering City School District, GO, FSA, 4.75%, 12/1/20, (Callable 6/1/17 @ 100) 1,860 1,922 Knox County Hospital Facilities, RADIAN, 4.70%, 6/1/08 1,150 1,156 Knox County Hospital Facilities, RADIAN, 5.00%, 6/1/12 6,250 6,452 Miami County Hospital Facilities, Upper Valley Medical Center, 5.25%, 5/15/15 500 521 Municipal Electric Generation Agency, Joint Venture, AMBAC, 5.00%, 2/15/14 1,885 1,996 North Olmsted, GO, AMBAC, 6.20%, 12/1/11 3,000 3,172 Ohio State Higher Education, GO, Series A, 4.25%, 5/1/16 2,310 2,344 Ohio State Higher Educational Facility Commission, Case Western Reserve University, 6.25%, 7/1/14 6,500 7,176 Ohio State Higher Educational Facility Commission, Denison University Project, 5.50%, 11/1/12, (Callable 11/1/11 @ 101) 1,000 1,068 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED OHIO, CONTINUED Ohio State Higher Educational Facility Commission, John Carroll University, 5.25%, 11/15/14, (Callable 11/15/13 @ 100) $ 1,435 $ 1,514 Ohio State Higher Educational Facility Commission, John Carroll University, 5.25%, 11/15/15, (Callable 11/15/13 @ 100) 1,490 1,569 Ohio State Higher Educational Facility Commission, Mount Union College Project, 4.75%, 10/1/15 385 402 Ohio State Higher Educational Facility Commission, Mount Union College Project, 4.75%, 10/1/16 300 313 Ohio State Higher Education Facility Commission, Mount Union College Project, 5.25%, 10/1/21, (Callable 10/1/16 @ 100) 980 1,035 Ohio State Higher Educational Facility Commission, Ohio Northern University Project, 3.50%, 5/1/10 475 465 Ohio State Higher Educational Facility Commission, Ohio Northern University Project, 3.88%, 5/1/13 645 631 Ohio State Higher Educational Facility Commission, Xavier University Project, CIFG, 5.00%, 5/1/16 2,010 2,137 Ohio State Higher Educational Facility Commission, Xavier University Project, CIFG, 5.00%, 5/1/19, (Callable 5/1/16 @ 100) 3,115 3,272 Ohio State University, Series B, 5.25%, 6/1/18, (Callable 6/1/13 @ 100) 5,880 6,233 Richland County Hospital Facilities, Medcentral Health Systems, 5.00%, 11/15/15 770 799 State Economic Enterprise, AMT, 3.50%, 12/1/07 70 70 State Economic Enterprise, AMT, 4.40%, 12/1/12 815 813 State Infrastructure Improvement, GO, Series A, 4.00%, 3/1/14 1,000 1,003 State Mental Health Facilities, Series II-A, 5.00%, 6/1/13, (Prerefunded 6/1/12 @ 100) 2,135 2,240 State of Ohio, Common Schools, GO, 5.00%, 6/15/13 1,000 1,057 State Solid Waste, Ohio Water Development Authority, AMT, 4.85%, 11/1/22, (Mandatory Put 11/1/07 @ 100) (a) 3,000 3,004 CONTINUED 118 OHIO MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED OHIO, CONTINUED State Solid Waste, Republic Services, Inc. Project, AMT, 4.25%, 4/1/33, (Mandatory Put 4/1/14 @ 100) (a) $ 3,470 $ 3,360 Steubenville Hospital Facilities, Trinity Health, 4.56%, 10/1/30 (a) 1,000 1,000 Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, 5.00%, 12/1/08 1,155 1,164 Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, 5.00%, 12/1/09 1,110 1,123 University of Cincinnati, CP,MBIA, 5.00%, 6/1/10 300 310 ------------ 93,102 ------------ PUERTO RICO (3.1%) Commonwealth of Puerto Rico, GO, Series A, 5.00%, 7/1/30, (Mandatory Put 7/1/12 @ 100) (a) 3,000 3,100 ------------ WASHINGTON (3.3%) Energy Northwest Washington Electric, 5.50%, 7/1/15 3,000 3,285 ------------ TOTAL MUNICIPAL BONDS 101,347 ------------ MUNICIPAL DEMAND NOTES (0.2%) (d) OHIO (0.2%) Air Quality Development Authority, Pollution Control, AMT, 3.70%, 8/1/07, (LOC: Wachovia Bank NA)(a) 200 200 ------------ TOTAL MUNICIPAL DEMAND NOTES 200 ------------ SHARES ------------ MONEY MARKETS (0.3%) (b) Goldman Sachs Financial Square Tax-Free Money Market Fund 255,542 256 ------------ TOTAL MONEY MARKETS 256 ------------ TOTAL INVESTMENTS (COST $101,319) - 101.1% 101,803 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.1)% (1,156) ------------ NET ASSETS - 100.0% $ 100,647 ============ CONTINUED NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Investment is in Institutional Shares of underlying fund. (c) All or part of this security has been designated as collateral for when issued or delayed delivery transactions. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Portfolio Investments: AMBAC - American Municipal Assurance Corp. AMT - Alternative Minimum Tax Paper CIFG - CDC IXIS Financial Guaranty Services, Inc. CP - Certificates of Participation FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GNMA - Government National Mortgage Association GO - General Obligation IBC - Insurance Bond Certificate LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance Radian - Radian Guaranty, Inc. TCRS - Temporary Custodian Receipts W/I - When Issued SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 119 MICHIGAN MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS (87.6%) MICHIGAN (86.5%) Avondale School District, GO, 5.00%, 5/1/10 $ 800 $ 823 Canton Charter Township Capital Improvements, GO, WI, FSA, 5.00%, 4/1/14 100 106 Chippewa Valley Schools, GO, FSA, 5.00%, 5/1/14 500 531 City of Ann Arbor Water Supply System, Series Y, MBIA, 5.00%, 2/1/10 880 906 City of Zeeland Water Supply System, AMT, 4.00%, 10/1/07 255 255 City of Zeeland Water Supply System, AMT, 4.00%, 10/1/08 270 269 City of Zeeland Water Supply System, AMT, 4.00%, 10/1/09 280 276 Clarkston Community Schools, GO, FSA-CR, 5.25%, 5/1/29, (Prerefunded 5/1/13 @ 100) 1,000 1,068 Coldwater Electric, AMT, XLCA, 4.50%, 8/1/11 515 523 Coldwater Electric, AMT, XLCA, 4.50%, 8/1/13 570 580 County of Muskegon, Wastewater Management System No. 1, GO, AMT, FSA, 5.00%, 7/1/08 1,000 1,011 Detroit, Cobo Hall, MBIA, 5.00%, 9/30/08 2,000 2,029 Detroit Sewer Disposal, MBIA, 5.50%, 7/1/16 1,500 1,657 Detroit Water Supply System, Series A, FSA, 5.00%, 7/1/15 1,000 1,065 Grand Rapids & Kent County Joint Building Authority, GO, 5.50%, 10/1/09 605 626 Higher Education Facilities Authority, Hope College Project, 4.60%, 10/1/08 320 323 Higher Education Student Loan Authority, AMT, Series XII-W, AMBAC, 4.60%, 9/1/08 1,000 1,008 Higher Education Student Loan Authority, AMT, Series XII-W, AMBAC, 4.75%, 3/1/09 200 203 Higher Education Student Loan Authority, AMT, Series XVII-I, AMBAC, 3.65%, 3/1/10 1,000 978 Kalamazoo Water Supply System, AMBAC, 5.00%, 9/1/14 450 480 Kalamazoo Water Supply System, AMBAC, 5.00%, 9/1/15 510 547 Kent Hospital Finance Authority, Spectrum Health, Series A, 5.25%, 1/15/08 430 433 CONTINUED PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Kent Hospital Finance Authority, Spectrum Health, Series A, 5.25%, 1/15/09 $ 1,075 $ 1,096 Kent Hospital Finance Authority, Spectrum Health, Series B, 5.00%, 7/15/11 600 619 Michigan State South Central Power Agency, WI, AMBAC, 4.50%, 11/1/11 500 513 Michigan State University, Series A, AMBAC, 4.00%, 2/15/12 450 453 Mount Clemens Community School District, GO, 5.50%, 5/1/12, (Prerefunded 11/1/11 @ 100) 1,075 1,144 Municipal Bond Authority, Government Loan Program, Series C, 5.00%, 5/1/10 (c) 1,000 1,030 Novi Street and Highway, GO, FSA, 5.00%, 10/1/08 2,320 2,353 South Macomb Disposal Authority, AMBAC, 5.00%, 9/1/08 1,115 1,130 State Building Authority, Series I, AMBAC, 5.00%, 10/15/29, (Mandatory Put 10/15/11 @ 100) (a) 1,000 1,041 State Hospital Finance Authority, Crittenton Hospital, Series A, 4.15%, 3/1/08 300 300 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.00%, 11/15/12 250 258 State Hospital Finance Authority, Henry Ford Health System, 5.00%, 11/15/14 250 260 State Hospital Finance Authority, Holland Community Hospital, Series A, 4.15%, 1/1/12 450 448 State Hospital Finance Authority, Marquette General Hospital, 5.00%, 5/15/10 905 920 State Hospital Finance Authority, McLaren Health Care, Series C, 4.00%, 8/1/08 405 406 State Hospital Finance Authority, Oakwood Healthcare System, 5.00%, 7/15/11 530 544 State Housing Development Authority, Multi-Family, AMT, GNMA, 3.55%, 4/20/08 395 394 State Housing Development Authority, Parkway Meadows Project, FSA, 3.50%, 10/15/08 930 926 State Housing Development Authority, Parkway Meadows Project, FSA, 3.50%, 10/15/09 710 703 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.00%, 4/1/12 145 144 CONTINUED 120 MICHIGAN MUNICIPAL BOND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------------ ------------ MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.00%, 10/1/12 $ 195 $ 193 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.05%, 4/1/13 100 99 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.05%, 10/1/13 210 207 State of Michigan, CP, Series A, MBIA, 5.00%, 9/1/31, (Mandatory Put 9/1/11 @ 100) (a) 2,000 2,076 State of Michigan Comprehensive Transportation, Series A, FSA, 5.50%, 5/15/11 950 1,006 Strategic Fund, Hope Network Project, Series B, 4.75%, 9/1/07, (LOC: First of America Bank) 615 615 Strategic Fund, Solid Waste Management Project, AMT, 4.63%, 12/1/12 250 249 University of Michigan Hospital, 5.00%, 12/1/08 2,000 2,031 University of Michigan Hospital, 5.00%, 12/1/09 510 521 Warren Consolidated School District, GO, FSA, 5.00%, 5/1/16 750 803 Wayne County Airport Authority, AMT, MBIA, 5.00%, 12/1/09 1,000 1,022 Wayne County Community College, GO, FGIC, 5.25%, 7/1/09 1,000 1,027 Wayne Westland Community Schools, GO, FSA, 5.00%, 5/1/10 (c) 1,000 1,032 Wyandotte Electric, Series A, AMT, MBIA, 4.50%, 10/1/11 600 608 Wyandotte Electric, Series A, AMT, MBIA, 5.00%, 10/1/12 600 620 ------------ 42,488 ------------ PUERTO RICO (1.1%) Government Development Bank, Series C, AMT, 5.25%, 1/1/15 500 525 ------------ TOTAL MUNICIPAL BONDS 43,013 ------------ MUNICIPAL DEMAND NOTES (d) (11.8%) MICHIGAN (11.8%) State Hospital Finance Authority, Crittenton Hospital, 3.70%, 8/1/07, (LOC: Comerica Bank) (a) 2,000 2,000 Strategic Fund, Detroit Symphony Project, Series B, 3.70%, 8/1/07, (LOC: LaSalle Bank Midwest) (a) 2,000 2,000 Strategic Fund, Orchestra Place Renewal Project, 3.62%, 8/2/07, (LOC: Standard Federal Bank) (a) 1,800 1,800 ------------ TOTAL MUNICIPAL DEMAND NOTES 5,800 ------------ CONTINUED SHARES VALUE ------------ ------------ MONEY MARKETS (b) (0.8%) AIM TFIT Tax-Free Cash Reserve Portfolio 182 --# Dreyfus Tax Exempt Cash Management 1,551 $ 2 Goldman Sachs Financial Square Tax-Free Money Market Fund 389,297 389 Merrill Lynch Institutional Tax-Exempt Fund 382 --# ------------ TOTAL MONEY MARKETS 391 ------------ TOTAL INVESTMENTS (COST $49,542) - 100.2% 49,204 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (75) ------------ NET ASSETS - 100.0% $ 49,129 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS # Amount is less than $500. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Investment is in Institutional Shares of underlying fund/portfolio. (c) All or part of this security has been designated as collateral for when issued or delayed delivery transactions. (d) Maturity date is next reset date. The following abbreviations are used in the Schedule of Portfolio Investments: AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax Paper CP - Certificates of Participation CR - Custodian Receipt FGIC - Financial Guaranty Insurance Co. FSA - Financial Security Assurance, Inc. GNMA - Government National Mortgage Association GO - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance W/I - When Issued XLCA - XL Capital Assurance SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 121 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS JULY 31, 2007 - -------------------------------------------------------------------------------- Cost and appreciation (depreciation) of investments for federal income tax purposes at July 31, 2007 is as follows: NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION/ COST APPRECIATION (DEPRECIATION) (DEPRECIATION) ---------- ------------ ------------- -------------- Small Cap Growth $ 106,778 $ 33,325 $ (6,752) $ 26,573 Mid Cap Growth 266,993 88,420 (11,113) 77,307 Quality Growth 557,192 92,586 (5,131) 87,455 Structured Large Cap Plus 241,829 27,255 (10,878) 16,377 Equity Index 174,775 257,907 (10,045) 247,862 Balanced 55,194 4,594 (1,235) 3,359 Micro Cap Value 71,541 13,833 (4,056) 9,777 Small Cap Value 109,177 14,842 (7,952) 6,890 Multi Cap Value 247,653 92,160 (6,783) 85,377 Disciplined Large Cap Value 571,385 129,243 (12,509) 116,734 LifeModel Aggressive(SM) 161,376 38,475 (408) 38,067 LifeModel Moderately Aggressive(SM) 284,537 59,952 (1,972) 57,980 LifeModel Moderate(SM) 462,672 57,299 (7,354) 49,945 LifeModel Moderately Conservative(SM) 89,445 11,186 (1,636) 9,550 LifeModel Conservative(SM) 50,466 2,617 (1,291) 1,326 Strategic Income 154,606 5,623 (5,050) 573 Dividend Growth 20,765 3,227 (343) 2,884 Technology 37,769 3,385 (2,115) 1,270 International Equity 366,694 142,295 (22,453) 119,842 High Yield 70,509 274 (3,217) (2,943) Bond 265,413 739 (5,497) (4,758) Intermediate Bond 503,642 2,330 (5,624) (3,294) Short Term Bond 282,629 321 (2,407) (2,086) U.S. Government Bond 30,768 145 (611) (466) Municipal Bond 45,217 828 (42) 786 Intermediate Municipal Bond 156,578 2,438 (765) 1,673 Ohio Municipal Bond 101,233 1,017 (446) 571 Michigan Municipal Bond 49,524 74 (394) (320) Open futures contracts as of July 31, 2007 (Amounts in thousands, except contract amount): UNREALIZED NUMBER OF NOTIONAL APPRECIATION/ MARKET CONTRACTS CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE --------- ----------------------- -------- -------------- -------- Structured Large Cap Plus 19 S&P 500 Index, 9/20/07 $ 7,266 $ (322) $ 6,944 ==== ======== ============== ======== Equity Index 29 S&P 500 Index, 9/20/07 11,049 (450) 10,599 ==== ======== ============== ======== International Equity 15 CAC 40 Index, 8/17/07 1,251 (58) 1,193 (14) DAX Index, 9/21/07 (3,615) (30) (3,645) 10 FTSE 100 Index, 9/15/07 1,371 (79) 1,292 16 TOPIX Index, 9/13/07 2,339 (104) 2,235 ---- -------- -------------- -------- 27 $ 1,346 $ (271) $ 1,075 ==== ======== ============== ======== The table below reflects Dividend Growth's activities in written options, all of which were for purposes of earning additional income during the period. No other Funds engaged in written option contracts during the year ended July 31, 2007. BALANCE AT OPTIONS OPTIONS BALANCE AT NUMBER OF CONTRACTS JULY 31, 2006 WRITTEN EXPIRED JULY 31, 2007 ------------- ------- ------- ------------- Dividend Growth 0 98 (98) 0 PREMIUMS Dividend Growth $ 0 5 (5) $ 0 SEE NOTES TO FINANCIAL STATEMENTS 122 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- International Equity foreign currency contracts as of July 31, 2007: CONTRACT CONTRACT CURRENT UNREALIZED DELIVERY AMOUNT (LOCAL VALUE U.S. VALUE APPRECIATION/ DATE CURRENCY) DOLLAR U.S. DOLLAR (DEPRECIATION) - ---------------------- ------------- ---------- ----------- -------------- AUSTRALIAN DOLLAR - -------------------------------------- Long Contracts 9/14/07 9,224 $ 7,747 $ 7,850 $ 103 9/14/07 1,369 1,152 1,165 13 BRITISH POUND STERLING - -------------------------------------- Short Contracts 9/14/07 671 1,356 1,361 (5) Long Contracts 9/14/07 5,117 10,088 10,386 298 9/14/07 5,055 9,974 10,261 287 9/14/07 1,955 3,858 3,969 111 EURO - -------------------------------------- Short Contracts 9/14/07 3,445 4,604 4,720 (116) 9/14/07 2,920 3,903 4,001 (98) 9/14/07 1,570 2,100 2,151 (51) Long Contracts 9/14/07 23,056 30,812 31,591 779 9/14/07 2,036 2,720 2,789 69 9/14/07 1,961 2,620 2,687 67 9/14/07 833 1,114 1,141 27 HONG KONG DOLLAR - -------------------------------------- Short Contracts 9/14/07 115,518 14,812 14,781 31 JAPANESE YEN - -------------------------------------- Short Contracts 9/14/07 4,548,675 37,782 38,625 (843) 9/14/07 1,547,623 12,866 13,141 (275) 9/14/07 1,282,753 10,656 10,892 (236) 9/14/07 1,066,989 8,864 9,060 (196) 9/14/07 254,384 2,114 2,160 (46) Long Contracts 9/14/07 1,352,172 11,240 11,482 242 9/14/07 1,339,506 11,136 11,374 238 9/14/07 1,287,149 10,691 10,929 238 9/14/07 17,657 147 150 3 SEE NOTES TO FINANCIAL STATEMENTS 123 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- The investment concentrations for the Equity Funds as a percentage of net assets, by industry, as of July 31, 2007, were as follows: STRUCTURED SMALL CAP MID CAP QUALITY LARGE CAP EQUITY MICRO CAP SMALL CAP MULTI CAP GROWTH GROWTH GROWTH PLUS INDEX VALUE VALUE VALUE --------- ------- ------- ---------- ------ --------- --------- --------- Advertising -- -- -- -- -- -- -- -- Aerospace & Defense -- 4.3% 5.0% 3.7% 2.8% 4.6% 1.9% 3.1% Agricultural Products -- -- -- -- -- -- -- -- Air Freight & Logistics 1.9% 1.3% -- 0.3% 0.9% 1.2% -- -- Airlines -- -- -- -- 0.1% -- -- -- Airport Services -- -- -- -- -- -- -- -- Aluminum -- -- -- -- -- -- -- -- Apparel Retail -- -- -- -- -- -- -- -- Apparel, Accessories & Luxury Goods -- -- -- -- -- -- -- -- Application Software -- -- -- -- -- -- -- -- Asset Management & Custody Banks -- -- -- -- -- -- -- -- Auto Components -- -- 1.8% 1.0% 0.2% -- -- 1.3% Auto Parts & Equipment -- -- -- -- -- -- -- -- Automobile Manufacturers -- -- -- -- -- -- -- -- Automobiles -- -- -- 0.3% 0.4% -- -- 0.5% Automotive Retail -- -- -- -- -- -- -- -- Beverages -- -- 2.0% 2.3% 2.1% -- 1.1% 1.6% Biotechnology 1.5% -- 3.1% 1.5% 1.2% -- -- -- Brewers -- -- -- -- -- -- -- -- Broadcasting & Cable TV -- -- -- -- -- -- -- -- Building Products 1.3% -- -- (0.5)% 0.1% 0.7% 1.0% -- Capital Markets 0.7% 4.7% 6.0% 4.1% 3.4% 1.3% -- 4.8% Cash & Cash Equivalents 3.7% 1.6% 1.0% 2.6% 2.3% 3.6% 2.6% 4.2% Casinos & Gaming -- -- -- (0.7)% -- -- -- -- Catalog Retail -- -- -- -- -- -- -- -- Chemicals -- -- 3.7% 1.1% 1.6% 2.3% 5.0% 3.2% Coal & Consumable Fuels -- -- -- -- -- -- -- -- Commercial Banks 1.2% -- -- 3.1% 3.5% 10.4% 10.5% 4.8% Commercial Banks-Southern U.S. -- -- -- -- -- -- -- -- Commercial Printing -- -- -- -- -- -- -- -- Commercial Services -- -- -- -- -- -- -- -- Commercial Services & Supplies 6.3% 2.6% 2.9% 1.0% 0.5% 4.5% 4.0% 1.7% Commodity Chemicals -- -- -- -- -- -- -- -- Communications Equipment 4.8% -- 3.6% 1.3% 2.7% 2.8% 5.1% 1.2% Computer & Electronics Retail -- -- -- -- -- -- -- -- Computer Hardware -- -- -- -- -- -- -- -- Computer Storage & Peripherals -- -- -- -- -- -- -- -- Computers & Peripherals -- 2.0% 8.8% 3.9% 4.1% 0.8% -- 2.9% Construction & Engineering -- -- 1.1% -- 0.1% 0.8% -- -- Construction & Farm Machinery & Trucks -- -- -- -- -- -- -- -- Construction Materials 1.8% 1.8% -- -- 0.1% -- 1.1% 0.1% Consumer Electronics -- -- -- -- -- -- -- -- Consumer Finance 1.6% -- 0.2% 0.9% 1.0% -- -- -- Containers & Packaging -- -- -- 0.6% 0.2% -- -- -- Department Stores -- -- -- -- -- -- -- -- Distillers & Vintners -- -- -- -- -- -- -- -- Distributors 3.2% -- -- -- 0.1% 0.7% -- -- Diversified Banks -- -- -- -- -- -- -- -- Diversified Capital Markets -- -- -- -- -- -- -- -- Diversified Chemicals -- -- -- -- -- -- -- -- Diversified Commercial & Professional Services -- -- -- -- -- -- -- -- Diversified Consumer Services -- -- -- -- 0.1% -- -- -- Diversified Financial Services 1.1% -- -- 5.6% 4.8% 1.1% -- 5.0% Diversified Metals & Mining -- -- -- (1.5)% -- -- -- -- Diversified REIT's -- -- -- -- -- -- -- -- Diversified Telecommunication Services -- 1.2% 1.8% 2.7% 3.1% 1.3% 1.9% 4.1% Education Services -- -- -- -- -- -- -- -- Electric Utilities -- -- -- 2.1% 1.7% -- 1.4% 3.4% Electrical Components & Equipment 5.7% -- 3.0% 0.9% 0.4% 1.6% 2.1% -- Electronic Equipment & Instruments -- -- -- (0.3)% 0.4% 7.5% 4.4% 0.9% Electronic Equipment Manufacture -- -- -- -- -- -- -- -- Electronic Manufacturing Service -- -- -- -- -- -- -- -- Energy -- -- -- -- -- -- -- -- Energy Equipment & Service 5.9% 7.2% 3.7% 4.6% 2.2% 2.3% 3.4% 2.1% Environmental & Facilities Services -- -- -- -- -- -- -- -- Fertilizers & Agricultural Chemicals -- -- -- -- -- -- -- -- Fifth Third Fixed Income Funds - Taxable -- -- -- -- -- -- -- -- Fifth Third Funds -- -- -- -- -- -- -- -- Food & Staples Retailing 0.9% -- 1.4% 0.7% 2.3% -- 3.3% 2.4% SEE NOTES TO FINANCIAL STATEMENTS. 124 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- DISCIPLINED LIFEMODEL LIFEMODEL LARGE CAP LIFEMODEL MODERATELY LIFEMODEL MODERATELY VALUE AGGRESSIVE(SM) AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE SM ----------- ------------- ------------- ----------- --------------- Advertising -- -- -- -- -- Aerospace & Defense 3.1% -- -- -- -- Agricultural Products -- -- -- -- -- Air Freight & Logistics -- -- -- -- -- Airlines -- -- -- -- -- Airport Services -- -- -- -- -- Aluminum -- -- -- -- -- Apparel Retail -- -- -- -- -- Apparel, Accessories & Luxury Goods -- -- -- -- -- Application Software -- -- -- -- -- Asset Management & Custody Banks -- -- -- -- -- Auto Components -- -- -- -- -- Auto Parts & Equipment -- -- -- -- -- Automobile Manufacturers -- -- -- -- -- Automobiles -- -- -- -- -- Automotive Retail -- -- -- -- -- Beverages 1.2% -- -- -- -- Biotechnology -- -- -- -- -- Brewers -- -- -- -- -- Broadcasting & Cable TV -- -- -- -- -- Building Products -- -- -- -- -- Capital Markets 4.0% -- -- -- -- Cash & Cash Equivalents 3.1% 1.1% 0.5% 0.4% 0.3% Casinos & Gaming -- -- -- -- -- Catalog Retail -- -- -- -- -- Chemicals 2.7% -- -- -- -- Coal & Consumable Fuels -- -- -- -- -- Commercial Banks 3.0% -- -- -- -- Commercial Banks-Southern U.S. -- -- -- -- -- Commercial Printing -- -- -- -- -- Commercial Services -- -- -- -- -- Commercial Services & Supplies 2.4% -- -- -- -- Commodity Chemicals -- -- -- -- -- Communications Equipment -- -- -- -- -- Computer & Electronics Retail -- -- -- -- -- Computer Hardware -- -- -- -- -- Computer Storage & Peripherals -- -- -- -- -- Computers & Peripherals 1.0% -- -- -- -- Construction & Engineering -- -- -- -- -- Construction & Farm Machinery & Trucks -- -- -- -- -- Construction Materials -- -- -- -- -- Consumer Electronics -- -- -- -- -- Consumer Finance 0.3% -- -- -- -- Containers & Packaging -- -- -- -- -- Department Stores -- -- -- -- -- Distillers & Vintners -- -- -- -- -- Distributors -- -- -- -- -- Diversified Banks -- -- -- -- -- Diversified Capital Markets -- -- -- -- -- Diversified Chemicals -- -- -- -- -- Diversified Commercial & Professional Services -- -- -- -- -- Diversified Consumer Services -- -- -- -- -- Diversified Financial Services 9.6% -- -- -- -- Diversified Metals & Mining -- -- -- -- -- Diversified REIT's -- -- -- -- -- Diversified Telecommunication Services 7.1% -- -- -- -- Education Services -- -- -- -- -- Electric Utilities 2.7% -- -- -- -- Electrical Components & Equipment -- -- -- -- -- Electronic Equipment & Instruments -- -- -- -- -- Electronic Equipment Manufacture -- -- -- -- -- Electronic Manufacturing Service -- -- -- -- -- Energy -- -- -- -- -- Energy Equipment & Service 1.7% -- -- -- -- Environmental & Facilities Services -- -- -- -- -- Fertilizers & Agricultural Chemicals -- -- -- -- -- Fifth Third Fixed Income Funds - Taxable -- 6.1% 27.5% 48.1% 58.4% Fifth Third Funds -- 92.7% 72.0% 51.6% 41.6% Food & Staples Retailing 0.9% -- -- -- -- LIFEMODEL DIVIDEND INTERNATIONAL CONSERVATIVE(SM) GROWTH TECHNOLOGY EQUITY --------------- --------- ----------- ------------- Advertising -- -- -- 0.1% Aerospace & Defense -- 5.2% -- 0.5% Agricultural Products -- -- -- 0.1% Air Freight & Logistics -- -- -- 0.4% Airlines -- -- -- 0.4% Airport Services -- -- -- -- ^ Aluminum -- -- -- 0.2% Apparel Retail -- -- -- 0.3% Apparel, Accessories & Luxury Goods -- -- -- 0.4% Application Software -- -- -- 0.6% Asset Management & Custody Banks -- -- -- 0.1% Auto Components -- -- -- -- Auto Parts & Equipment -- -- -- 0.4% Automobile Manufacturers -- -- -- 4.1% Automobiles -- -- -- -- Automotive Retail -- -- -- -- ^ Beverages -- 5.8% -- 0.1% Biotechnology -- 2.3% -- 0.1% Brewers -- -- -- 0.5% Broadcasting & Cable TV -- -- -- 0.3% Building Products -- -- -- 0.7% Capital Markets -- 5.9% -- -- Cash & Cash Equivalents 1.3% 1.6% 1.8% -- Casinos & Gaming -- -- -- 0.2% Catalog Retail -- -- -- -- ^ Chemicals -- 3.8% -- -- Coal & Consumable Fuels -- -- -- 0.2% Commercial Banks -- 4.1% -- -- Commercial Banks-Southern U.S. -- -- -- -- ^ Commercial Printing -- -- -- 0.1% Commercial Services -- -- -- 0.3% Commercial Services & Supplies -- -- -- -- Commodity Chemicals -- -- -- 0.5% Communications Equipment -- 2.5% 10.8% 1.7% Computer & Electronics Retail -- -- -- 0.2% Computer Hardware -- -- -- 0.4% Computer Storage & Peripherals -- -- -- 0.1% Computers & Peripherals -- 3.0% 10.8% -- Construction & Engineering -- -- -- 1.2% Construction & Farm Machinery & Trucks -- -- -- 1.2% Construction Materials -- -- -- 0.9% Consumer Electronics -- -- -- 1.3% Consumer Finance -- -- -- 0.1% Containers & Packaging -- -- -- -- Department Stores -- -- -- 0.4% Distillers & Vintners -- -- -- 0.5% Distributors -- -- -- 0.2% Diversified Banks -- -- -- 14.9% Diversified Capital Markets -- -- -- 1.4% Diversified Chemicals -- -- -- 1.3% Diversified Commercial & Professional Services -- -- -- 0.3% Diversified Consumer Services -- -- -- -- Diversified Financial Services -- 4.6% -- -- Diversified Metals & Mining -- -- -- 4.6% Diversified REIT's -- -- -- 0.1% Diversified Telecommunication Services -- 1.6% -- -- Education Services -- -- -- -- ^ Electric Utilities -- -- -- 2.5% Electrical Components & Equipment -- 3.5% -- 0.4% Electronic Equipment & Instruments -- -- -- -- Electronic Equipment Manufacture -- -- -- 1.5% Electronic Manufacturing Service -- -- -- -- ^ Energy -- -- -- 0.2% Energy Equipment & Service -- 2.3% -- -- Environmental & Facilities Services -- -- -- -- ^ Fertilizers & Agricultural Chemicals -- -- -- 0.2% Fifth Third Fixed Income Funds - Taxable 76.4% -- -- -- Fifth Third Funds 21.8% -- -- -- Food & Staples Retailing -- -- -- -- SEE NOTES TO FINANCIAL STATEMENTS. 125 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- STRUCTURED SMALL CAP MID CAP QUALITY LARGE CAP EQUITY MICRO CAP SMALL CAP MULTI CAP GROWTH GROWTH GROWTH PLUS INDEX VALUE VALUE VALUE --------- ------- ------- ---------- ------ --------- --------- --------- Food Products -- -- 2.9% 2.3% 1.4% 3.4% 0.5% 3.5% Food Retail -- -- -- -- -- -- -- -- Footwear -- -- -- -- -- -- -- -- Gas Utilities -- -- -- -- -- -- -- -- Gas-Distribution -- -- -- 0.6% 0.1% 0.9% 1.3% -- General Merchandise Stores -- -- -- -- -- -- -- -- Gold -- -- -- (0.3)% -- -- -- -- Healthcare Distributors -- -- -- -- -- -- -- -- Healthcare Equipment -- -- -- -- -- -- -- -- Healthcare Equipment & Supplies 6.6% 5.0% 3.9% (0.8)% 1.7% 3.7% 1.9% -- Healthcare Facilities -- -- -- -- -- -- -- -- Healthcare Providers & Services 8.1% 8.1% -- 4.6% 2.2% 2.7% 4.1% 3.3% Healthcare Services -- -- -- -- -- -- -- -- Healthcare Supplies -- -- -- -- -- -- -- -- Healthcare Technology 0.8% -- -- -- -- ^ -- -- -- Heavy Electrical Equipment -- -- -- -- -- -- -- -- Highways & Railtracks -- -- -- -- -- -- -- -- Home Entertainment Software -- -- -- -- -- -- -- -- Home Improvement Retail -- -- -- -- -- -- -- -- Homebuilding -- -- -- -- -- -- -- -- Hotels Restaurants & Leisure 1.4% 5.5% 4.2% 0.7% 1.5% 2.6% 3.4% 2.0% Hotels, Resorts & Cruise Lines -- -- -- -- -- -- -- -- Household Appliances -- -- -- -- -- -- -- -- Household Durables -- -- -- 2.5% 0.5% 0.8% 1.2% 1.8% Household Products -- -- 2.8% 2.5% 2.0% -- -- -- Housewares & Specialties -- -- -- -- -- -- -- -- Human Resource & Employment Services -- -- -- -- -- -- -- -- Hypermarkets & Super Centers -- -- -- -- -- -- -- -- Independent Power Producer & Energy Trader -- -- -- -- -- -- -- -- Industrial Conglomerates -- -- -- 3.2% 3.8% -- -- 2.4% Industrial Gases -- -- -- -- -- -- -- -- Industrial Machinery -- -- -- -- -- -- -- -- Industrial REIT's -- -- -- -- -- -- -- -- Insurance 1.1% 1.4% 0.9% 4.8% 4.4% 4.9% 3.9% 5.4% Integrated Oil & Gas -- -- -- -- -- -- -- -- Integrated Telecommunication Services -- -- -- -- -- -- -- -- Internet & Catalog Retail -- -- -- 0.6% 0.2% -- -- -- Internet Software & Services 2.6% 0.5% 2.9% 3.8% 1.4% 1.5% 0.9% -- Investment Banking & Brokerage -- -- -- -- -- -- -- -- IT Consulting & Other Services -- -- -- -- -- -- -- -- IT Services -- 1.8% 1.5% 0.1% 1.1% 1.0% -- 0.5% Leisure Equipment & Products -- -- -- -- 0.2% -- 1.0% 0.8% Leisure Facilities -- -- -- -- -- -- -- -- Leisure Products -- -- -- -- -- -- -- -- Life & Health Insurance -- -- -- -- -- -- -- -- Life Sciences Tools & Services 2.6% 2.7% 3.1% 0.5% 0.3% -- -- -- Machinery 2.0% 5.4% 6.0% 2.0% 1.7% 1.5% 3.8% 2.7% Marine 2.2% -- -- -- -- 1.5% 1.1% -- Marine Ports & Services -- -- -- -- -- -- -- -- Materials -- -- -- -- -- -- -- -- Media 1.4% -- 1.6% 3.0% 3.2% -- -- 2.2% Metal & Glass Containers -- -- -- -- -- -- -- -- Metals & Mining -- 1.5% -- 0.7% 0.9% 0.3% 3.2% 1.2% Miscellaneous -- -- -- -- -- 0.5% -- -- Motorcycle Manufacturers -- -- -- -- -- -- -- -- Movies & Entertainment -- -- -- -- -- -- -- -- Multi-Line Insurance -- -- -- -- -- -- -- -- Multiline Retail -- 1.2% -- 1.5% 1.0% -- -- -- Multi-Sector Holdings -- -- -- -- -- -- -- -- Multi-Utilities -- -- -- 0.2% 1.1% -- 2.0% 0.4% Office Electronics -- -- -- -- 0.1% -- -- -- Office REIT's -- -- -- -- -- -- -- -- Office Services & Supplies -- -- -- -- -- -- -- -- Oil & Gas 1.1% 2.9% 3.3% 7.7% 8.7% 1.9% 3.7% 10.8% Oil & Gas Equipment & Services -- -- -- -- -- -- -- -- Oil & Gas Exploration & Production -- -- -- -- -- -- -- -- Oil & Gas Refining & Marketing -- -- -- -- -- -- -- -- Other Diversified Financial Services -- -- -- -- -- -- -- -- Packaged Foods & Meats -- -- -- -- -- -- -- -- Paper & Forest Products -- -- -- -- 0.3% 1.0% 1.9% -- Paper Packaging -- -- -- -- -- -- -- -- Paper Products -- -- -- -- -- -- -- -- Personal Products 0.9% 1.4% 1.2% (0.2)% 0.2% -- -- -- Pharmaceuticals -- 1.1% 5.0% 5.2% 6.0% -- -- 5.3% SEE NOTES TO FINANCIAL STATEMENTS. 126 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- DISCIPLINED LIFEMODEL LIFEMODEL LARGE CAP LIFEMODEL MODERATELY LIFEMODEL MODERATELY VALUE AGGRESSIVE(SM) AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE(SM) ----------- ---------- ---------- ----------- --------------- Food Products 2.9% -- -- -- -- Food Retail -- -- -- -- -- Footwear -- -- -- -- -- Gas Utilities -- -- -- -- -- Gas-Distribution -- -- -- -- -- General Merchandise Stores -- -- -- -- -- Gold -- -- -- -- -- Healthcare Distributors -- -- -- -- -- Healthcare Equipment -- -- -- -- -- Healthcare Equipment & Supplies -- -- -- -- -- Healthcare Facilities -- -- -- -- -- Healthcare Providers & Services 1.3% -- -- -- -- Healthcare Services -- -- -- -- -- Healthcare Supplies -- -- -- -- -- Healthcare Technology -- -- -- -- -- Heavy Electrical Equipment -- -- -- -- -- Highways & Railtracks -- -- -- -- -- Home Entertainment Software -- -- -- -- -- Home Improvement Retail -- -- -- -- -- Homebuilding -- -- -- -- -- Hotels Restaurants & Leisure 0.8% -- -- -- -- Hotels, Resorts & Cruise Lines -- -- -- -- -- Household Appliances -- -- -- -- -- Household Durables 1.7% -- -- -- -- Household Products -- -- -- -- -- Housewares & Specialties -- -- -- -- -- Human Resource & Employment Services -- -- -- -- -- Hypermarkets & Super Centers -- -- -- -- -- Independent Power Producer & Energy Trader -- -- -- -- -- Industrial Conglomerates 4.8% -- -- -- -- Industrial Gases -- -- -- -- -- Industrial Machinery -- -- -- -- -- Industrial REIT's -- -- -- -- -- Insurance 8.9% -- -- -- -- Integrated Oil & Gas -- -- -- -- -- Integrated Telecommunication Services -- -- -- -- -- Internet & Catalog Retail -- -- -- -- -- Internet Software & Services -- -- -- -- -- Investment Banking & Brokerage -- -- -- -- -- IT Consulting & Other Services -- -- -- -- -- IT Services 1.9% -- -- -- -- Leisure Equipment & Products -- -- -- -- -- Leisure Facilities -- -- -- -- -- Leisure Products -- -- -- -- -- Life & Health Insurance -- -- -- -- -- Life Sciences Tools & Services -- -- -- -- -- Machinery 1.9% -- -- -- -- Marine 2.2% -- -- -- -- Marine Ports & Services -- -- -- -- -- Materials -- -- -- -- -- Media 1.4% -- -- -- -- Metal & Glass Containers -- -- -- -- -- Metals & Mining 1.4% -- -- -- -- Miscellaneous -- -- -- -- -- Motorcycle Manufacturers -- -- -- -- -- Movies & Entertainment -- -- -- -- -- Multi-Line Insurance -- -- -- -- -- Multiline Retail -- -- -- -- -- Multi-Sector Holdings -- -- -- -- -- Multi-Utilities -- -- -- -- -- Office Electronics -- -- -- -- -- Office REIT's -- -- -- -- -- Office Services & Supplies -- -- -- -- -- Oil & Gas 13.1% -- -- -- -- Oil & Gas Equipment & Services -- -- -- -- -- Oil & Gas Exploration & Production -- -- -- -- -- Oil & Gas Refining & Marketing -- -- -- -- -- Other Diversified Financial Services -- -- -- -- -- Packaged Foods & Meats -- -- -- -- -- Paper & Forest Products -- -- -- -- -- Paper Packaging -- -- -- -- -- Paper Products -- -- -- -- -- Personal Products -- -- -- -- -- Pharmaceuticals 7.6% -- -- -- -- LIFEMODEL DIVIDEND INTERNATIONAL CONSERVATIVE(SM) GROWTH TECHNOLOGY EQUITY ------------ -------- ---------- ------------- Food Products -- 2.6% -- -- Food Retail -- -- -- 0.9% Footwear -- -- -- 0.1% Gas Utilities -- -- -- 0.4% Gas-Distribution -- -- -- -- General Merchandise Stores -- -- -- -- ^ Gold -- -- -- 0.1% Healthcare Distributors -- -- -- 0.1% Healthcare Equipment -- -- -- 0.4% Healthcare Equipment & Supplies -- 4.1% -- -- Healthcare Facilities -- -- -- -- ^ Healthcare Providers & Services -- 2.1% -- -- Healthcare Services -- -- -- 0.1% Healthcare Supplies -- -- -- -- ^ Healthcare Technology -- -- -- -- ^ Heavy Electrical Equipment -- -- -- 0.9% Highways & Railtracks -- -- -- 0.3% Home Entertainment Software -- -- -- 0.3% Home Improvement Retail -- -- -- -- ^ Homebuilding -- -- -- 0.6% Hotels Restaurants & Leisure -- 1.0% -- -- Hotels, Resorts & Cruise Lines -- -- -- 0.4% Household Appliances -- -- -- 0.1% Household Durables -- -- -- -- Household Products -- 3.4% -- 0.5% Housewares & Specialties -- -- -- -- ^ Human Resource & Employment Services -- -- -- 0.1% Hypermarkets & Super Centers -- -- -- 0.6% Independent Power Producer & Energy Trader -- -- -- 0.1% Industrial Conglomerates -- 4.8% -- 1.9% Industrial Gases -- -- -- 0.2% Industrial Machinery -- -- -- 1.9% Industrial REIT's -- -- -- -- ^ Insurance -- 4.4% -- -- Integrated Oil & Gas -- -- -- 5.5% Integrated Telecommunication Services -- -- -- 3.4% Internet & Catalog Retail -- -- 9.6% -- ^ Internet Software & Services -- -- 4.9% 0.1% Investment Banking & Brokerage -- -- -- 0.6% IT Consulting & Other Services -- -- -- 0.5% IT Services -- 2.4% 6.9% -- Leisure Equipment & Products -- -- -- -- Leisure Facilities -- -- -- -- Leisure Products -- -- -- 0.1% Life & Health Insurance -- -- -- 1.2% Life Sciences Tools & Services -- -- -- -- Machinery -- 1.0% -- -- Marine 2.2% -- -- 0.4% Marine Ports & Services -- -- -- 0.1% Materials -- -- -- 0.3% Media 1.4% -- -- -- Metal & Glass Containers -- -- -- 0.1% Metals & Mining -- -- -- -- Miscellaneous -- -- -- -- Motorcycle Manufacturers -- -- -- -- ^ Movies & Entertainment -- -- -- 0.2% Multi-Line Insurance -- -- -- 1.7% Multiline Retail -- 4.0% -- -- Multi-Sector Holdings -- -- -- -- ^ Multi-Utilities -- -- -- 1.0% Office Electronics -- -- 2.0% 0.7% Office REIT's -- -- -- 0.1% Office Services & Supplies -- -- -- -- ^ Oil & Gas -- 8.3% -- -- Oil & Gas Equipment & Services -- -- -- -- ^ Oil & Gas Exploration & Production -- -- -- 1.1% Oil & Gas Refining & Marketing -- -- -- 0.4% Other Diversified Financial Services -- -- -- 0.7% Packaged Foods & Meats -- -- -- 2.1% Paper & Forest Products -- -- -- -- Paper Packaging -- -- -- 0.1% Paper Products -- -- -- 0.5% Personal Products -- -- -- 0.2% Pharmaceuticals -- 5.0% -- 3.8% SEE NOTES TO FINANCIAL STATEMENTS. 127 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- STRUCTURED SMALL CAP MID CAP QUALITY LARGE CAP EQUITY MICRO CAP SMALL CAP MULTI CAP GROWTH GROWTH GROWTH PLUS INDEX VALUE VALUE VALUE --------- ------- ------- ---------- ------ --------- --------- --------- Photographic Products -- -- -- -- -- -- -- -- Precious Metals & Minerals -- -- -- -- -- -- -- -- Property & Casualty Insurance -- -- -- -- -- -- -- -- Publishing -- -- -- -- -- -- -- -- Railroads -- -- -- -- -- -- -- -- Real Estate Investment Trusts 1.4% 1.1% -- (0.7)% 1.1% 3.1% 3.9% -- Real Estate Management & Development -- 1.6% -- 0.1% -- ^ -- -- -- Regional Banks -- -- -- -- -- -- -- -- Reinsurance -- -- -- -- -- -- -- -- Reits-Office Property -- -- -- (0.4)% -- -- -- -- Restaurants -- -- -- -- -- -- -- -- Retail REIT's -- -- -- -- -- -- -- -- Road & Rail -- -- -- 1.3% 0.8% 0.6% 1.1% 1.7% Semiconductor Equipment -- -- -- -- -- -- -- -- Semiconductors -- -- -- -- -- -- -- -- Semiconductors & Semiconductor Equipment 8.4% 6.8% 5.0% 4.6% 2.7% 6.0% 4.1% 4.5% Soft Drinks -- -- -- -- -- -- -- -- Software 6.8% 7.7% 5.4% 2.7% 3.2% 2.5% 1.1% -- Sovereign Agency -- -- -- -- -- -- -- -- Specialized Finance -- -- -- -- -- -- -- -- Specialty Chemicals -- -- -- -- -- -- -- -- Specialty Retail 6.0% 8.1% -- 0.7% 1.8% 3.1% 2.8% 1.2% Specialty Stores -- -- -- -- -- -- -- -- Steel -- -- -- -- -- -- -- -- Systems Software -- -- -- -- -- -- -- -- Technology Distributors -- -- -- -- -- -- -- -- Textiles -- -- -- -- -- -- -- -- Textiles Apparel & Luxury Goods 3.6% 3.8% 1.4% 1.2% 0.4% 3.6% 0.8% 0.6% Thrifts & Mortgage Finance -- -- -- 0.5% 1.2% 5.8% 1.6% 0.8% Tires & Rubber -- -- -- -- -- -- -- -- Tobacco -- -- -- 1.7% 1.2% -- -- 0.3% Trading Companies & Distributors 1.5% 1.5% -- -- -- ^ 0.8% 2.2% -- Transportation 1.9% -- -- -- -- -- -- -- Trucking -- -- -- -- -- -- -- -- Utilities -- -- -- 0.8% 0.5% -- -- -- Water Utilities -- -- -- -- -- -- -- -- Wireless Telecommunication Services -- 2.7% -- 0.1% 0.6% -- -- 1.3% _____________________________ ^ Amount is less than 0.05%. SEE NOTES TO FINANCIAL STATEMENTS. 128 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- DISCIPLINED LIFEMODEL LIFEMODEL LARGE CAP LIFEMODEL MODERATELY LIFEMODEL MODERATELY VALUE AGGRESSIVE(SM) AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE(SM) ----------- ---------- ---------- --------- ------------ Photographic Products -- -- -- -- -- Precious Metals & Minerals -- -- -- -- -- Property & Casualty Insurance -- -- -- -- -- Publishing -- -- -- -- -- Railroads -- -- -- -- -- Real Estate Investment Trusts -- -- -- -- -- Real Estate Management & Development -- -- -- -- -- Regional Banks -- -- -- -- -- Reinsurance -- -- -- -- -- Reits-Office Property -- -- -- -- -- Restaurants -- -- -- -- -- Retail REIT's -- -- -- -- -- Road & Rail -- -- -- -- -- Semiconductor Equipment -- -- -- -- -- Semiconductors -- -- -- -- -- Semiconductors & Semiconductor Equipment 3.7% -- -- -- -- Soft Drinks -- -- -- -- -- Software -- -- -- -- -- Sovereign Agency -- -- -- -- -- Specialized Finance -- -- -- -- -- Specialty Chemicals -- -- -- -- -- Specialty Retail 1.4% -- -- -- -- Specialty Stores -- -- -- -- -- Steel -- -- -- -- -- Systems Software -- -- -- -- -- Technology Distributors -- -- -- -- -- Textiles -- -- -- -- -- Textiles Apparel & Luxury Goods -- -- -- -- -- Thrifts & Mortgage Finance -- -- -- -- -- Tires & Rubber -- -- -- -- -- Tobacco 3.3% -- -- -- -- Trading Companies & Distributors -- -- -- -- -- Transportation -- -- -- -- -- Trucking -- -- -- -- -- Utilities -- -- -- -- -- Water Utilities -- -- -- -- -- Wireless Telecommunication Services -- -- -- -- -- LIFEMODEL DIVIDEND INTERNATIONAL CONSERVATIVE(SM) GROWTH TECHNOLOGY EQUITY ------------ -------- ---------- ------------- Photographic Products -- -- -- 0.3% Precious Metals & Minerals -- -- -- -- ^ Property & Casualty Insurance -- -- -- 0.6% Publishing -- -- -- 0.6% Railroads -- -- -- 0.6% Real Estate Investment Trusts -- -- -- -- Real Estate Management & Development -- -- -- 1.2% Regional Banks -- -- -- 0.7% Reinsurance -- -- -- 0.4% Reits-Office Property -- -- -- -- Restaurants -- -- -- 0.3% Retail REIT's -- -- -- 0.4% Road & Rail -- -- -- -- Semiconductor Equipment -- -- -- 0.3% Semiconductors -- -- -- 0.7% Semiconductors & Semiconductor Equipment -- 2.8% 32.3% -- Soft Drinks -- -- -- 0.1% Software -- 3.0% 20.2% -- Sovereign Agency -- -- -- 0.1% Specialized Finance -- -- -- 0.3% Specialty Chemicals -- -- -- 0.8% Specialty Retail -- -- -- -- Specialty Stores -- -- -- -- ^ Steel -- -- -- 2.1% Systems Software -- -- -- -- ^ Technology Distributors -- -- -- -- ^ Textiles -- -- -- -- ^ Textiles Apparel & Luxury Goods -- 2.1% -- -- ^ Thrifts & Mortgage Finance -- -- -- 0.1% Tires & Rubber -- -- -- 0.5% Tobacco -- 2.6% -- 0.9% Trading Companies & Distributors -- 0.7% -- 1.3% Transportation -- -- -- -- Trucking -- -- -- 0.3% Utilities -- -- -- -- Water Utilities -- -- -- 0.2% Wireless Telecommunication Services -- -- 0.9% 2.7% SEE NOTES TO FINANCIAL STATEMENTS. 129 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- The investment concentrations for Balanced and Strategic Income as a percentage of net assets, by industry, as of July 31, 2007, were STRATEGIC BALANCED INCOME -------- --------- Aerospace & Defense 3.0% -- Agency Collateral IO 0.2% -- Agency Collateral Other 0.4% -- Agency Collateral PAC 1.1% 0.6% Agency Collateral Sequential -- 1.4% Auto Components 2.0% -- Auto-Cars/Light Trucks -- 0.7% Automobile ABS Other -- 0.6% Beverages 1.1% 0.1% Cable TV 0.1% 2.4% Capital Markets 4.6% 0.2% Cash & Cash Equivalents 2.0% 8.5% Cellular Telecom 0.1% -- Chemicals 2.1% -- Closed-End Funds -- 8.3% CMBS Other 5.3% 0.6% CMBS Subordinateed 1.1% -- Commercial Banks 3.0% 1.7% Commercial Banks Non-U.S. -- 1.9% Commercial Banks-Central U.S. 0.4% -- Commercial Banks-Eastern U.S. -- 1.6% Commercial Banks-Southern U.S. -- 1.2% Commercial Services & Supplies 1.0% -- Communications Equipment 1.5% -- Computers -- 0.6% Computers & Peripherals 2.7% -- Credit Card Bullet -- 0.3% Diversified Financial Services -- 4.9% Diversified Operations -- 0.7% Diversified Telecommunication Services 1.2% -- Electric Utilities -- 1.1% Electric-Integrated 0.9% 3.2% Electronic Equipment & Instruments 1.2% -- Energy Equipment & Service 2.4% -- FGLMC Single Family 30 Yr. 2.7% -- FHLMC ARM -- 0.1% Finance-Commercial -- 1.4% Finance-Consumer Loans -- 2.8% Finance-Credit Card -- 0.6% Finance-Investment Banker/Broker -- 5.6% Finance-Leasing Company -- 0.6% Finance-Other Services -- 0.7% Financial Guarantee Insurance -- 2.4% FNMA ARM -- 0.3% FNMA Single Family 20 Yr. 1.0% -- FNMA Single Family 30 Yr. 3.5% 0.7% Food & Staples Retailing 2.2% -- Food Products 2.3% 0.3% Food-Misc/Diversified -- 1.0% Forestry -- 1.0% GNMA Single Family 30 Yr. 0.2% -- GNMA2 Single Family 30 Yr. 0.1% -- Healthcare Equipment & Supplies 3.8% -- Healthcare Providers & Services 0.8% -- STRATEGIC BALANCED INCOME --------- --------- Home Equity Other 0.7% -- Hotels Restaurants & Leisure 2.1% -- Household Durables 0.9% -- Household Products 1.4% 0.4% Industrial Conglomerates -- 0.3% Insurance 0.9% -- Insurance Brokers -- 0.3% Internet Software & Services 0.8% -- Investment Management/ Advisor Services -- 0.3% Life/Health Insurance -- 0.3% Machinery 5.3% -- Manufact Hous ABS Other 0.5% -- Miscellaneous -- 0.4% Money Center Banks -- 1.0% Mortgage Banks -- 1.0% Multi-Line Insurance -- 2.2% Multiline Retail 1.1% -- Multimedia 0.1% 1.1% Multi-Utilities 1.9% 0.7% Non-Proprietary Equity Funds -- 0.4% Oil & Gas 4.0% 0.7% Oil Company-Exploration & Production 0.2% 0.7% Other ABS 0.1% 1.2% Personal Products 1.0% -- Pharmaceuticals 3.4% 0.8% Pipelines 0.3% -- Real Estate -- 1.3% Real Estate Investment Trusts -- 3.5% Reits-Diversified -- 0.2% Reits-Mortgage -- 0.3% Reits-Office Property -- 0.4% Reits-Shopping Centers -- 1.2% Reits-Storage -- 1.2% Retail-Drug Store -- 0.5% S&L/Thrifts-Southern U.S. -- 0.5% Semiconductors & Semiconductor Equipment 1.9% -- Software 2.7% -- Sovereign -- 1.8% Sovereign Agency -- 2.2% Special Purpose Banks -- 0.6% Special Purpose Entity -- 3.6% Super-Regional Banks-U.S. -- 6.1% Telephone-Integrated 0.6% 1.1% Tobacco -- 1.0% Trading Companies & Distributors 1.1% -- Transport-Rail -- 0.3% Wireless Equipment -- 0.3% WL Collateral CMO Other 10.2% 3.1% WL Collateral CMO Sequential 6.1% 0.6% WL Collateral Support 0.6% -- SEE NOTES TO FINANCIAL STATEMENTS. 130 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- The investment concentrations for the Municipal Bond Funds as a percentage of net assets, by industry, as of July 31, 2007, were as follows: INTERMEDIATE OHIO MICHIGAN MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND --------- ------------ --------- --------- Airport 3.9% 10.5% 1.8% 2.1% Cash & Cash Equivalents 0.5% 0.2% 0.2% 0.8% Development -- 8.7% 3.2% 8.8% Education 10.6% -- 1.4% -- Facilities 2.3% 5.6% -- 7.5% General 4.4% 4.0% 4.6% 6.3% General Obligation 15.6% 12.7% 19.4% 7.1% Higher Education 10.7% 3.7% 26.0% 3.7% Housing 2.2% 5.4% 3.0% 4.6% Medical 4.0% 11.3% 15.3% 21.3% Multifamily Housing -- 0.3% -- 0.8% Pollution 6.9% 4.2% 6.5% 2.8% Power 2.2% 10.0% 9.2% 5.8% School District 17.9% 10.9% 7.9% 11.0% Single Family Housing 2.1% 4.1% 1.0% -- Student Loan 2.2% 0.6% -- 4.5% Transportation 1.4% 7.7% 1.6% 2.0% Utilities 5.2% 4.1% -- 3.4% Water 6.7% 0.4% -- 7.7% SEE NOTES TO FINANCIAL STATEMENTS. 131 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- The investment concentrations for the Bond Funds as a percentage of net assets, by industry, as of July 31, 2007, were as follows: U. S. HIGH YIELD INTERMEDIATE SHORT TERM GOVERNMENT BOND BOND BOND BOND BOND ---------- ------ ------------ ---------- ---------- Aerospace 0.3% -- -- -- -- Agency Collateral IO -- 2.8% 2.0% -- 3.3% Agency Collateral Other -- 5.6% 3.6% 2.0% 16.6% Agency Collateral PAC -- 5.2% 1.2% 4.2% 19.6% Agency Collateral Sequential -- 1.9% 3.4% 8.0% 8.8% Agency Collateral Support -- -- -- -- 6.1% Agency Collateral TAC -- -- -- -- 6.4% Auto-Cars/Light Trucks -- -- -- 0.5% -- Automobile ABS Other -- 1.3% 0.5% 0.5% -- Automobiles Sequential -- 0.6% 0.8% 10.5% -- Automotive & Auto Parts 7.1% -- -- -- -- Broadcasting 0.1% -- -- -- -- Building Materials 3.5% -- -- -- -- Cable TV -- 1.1% -- -- -- Cable/Satellite TV 6.1% -- -- -- -- Cash & Cash Equivalents 1.5% 0.3% 0.7% 4.3% 20.1% Chemicals 8.4% -- -- -- -- Chemicals-Diversified -- -- -- ^ -- -- CMBS Other -- 10.0% 9.0% 5.5% -- CMBS Subordinateed -- 2.2% 4.8% 3.3% -- Commercial Banks Non-U.S. -- -- 0.3% -- -- Commercial Banks-Central U.S. -- -- 1.7% -- -- Commercial Banks-Eastern U.S. -- 0.4% 0.2% 1.0% -- Commercial Banks-Southern U.S. -- 0.3% 0.8% -- -- Consulting Services -- 0.8% -- -- -- Credit Card Bullet -- -- -- 3.2% -- Development -- -- -- 0.2% -- Diversified Financial Services -- -- 0.2% 2.2% -- Electrical Components & Equipment -- ^ -- -- -- -- Electric-Integrated -- 1.2% 0.6% 0.3% -- Energy 11.6% -- -- -- -- Environmental 1.1% -- -- -- -- FGLMC Single Family 20 Yr. -- 0.3% -- -- -- FGLMC Single Family 30 Yr. -- 8.5% -- -- -- FHLMC ARM -- 0.4% 4.2% 2.1% -- Finance-Consumer Loans -- -- 0.6% 1.1% -- Finance-Investment Banker/Broker -- 1.2% 0.8% 3.1% -- Finance-Leasing Company -- -- 0.5% 1.1% -- Finance-Other Services -- -- -- 0.1% -- FNMA ARM -- -- -- ^ 2.3% 6.8% FNMA Other -- 1.6% -- -- -- FNMA Single Family 15 Yr. -- 2.3% -- -- -- FNMA Single Family 20 Yr. -- 1.3% -- -- -- FNMA Single Family 30 Yr. -- 19.4% -- -- -- Food Beverage & Tobacco 3.3% -- -- -- -- Gas-Distribution -- -- -- 1.2% -- GNMA Single Family 30 Yr. -- -- 0.1% -- -- Healthcare 9.5% -- -- -- -- Home Equity Other -- 0.7% 3.4% 2.2% -- Home Equity Sequential -- 0.5% 0.3% 1.1% -- Homebuilders/Real Estate 4.4% -- -- -- -- Investment Managment/Advisor Services -- -- 0.3% -- -- Life/Health Insurance -- -- -- 0.6% -- Manufact Hous Sequential -- -- 0.6% -- -- Media 8.2% -- -- -- -- Medical-Drugs -- 0.4% -- -- -- Money Center Banks -- 0.4% 0.4% -- -- Multi-Line Insurance -- -- 0.2% -- -- Multimedia -- 0.2% -- -- -- Oil Company-Exploration & Production -- 0.8% 0.8% -- -- Oil Company-Integrated -- -- -- 1.1% -- Oil Refining & Marketing -- -- 0.3% -- -- Other ABS -- 6.2% 8.2% 0.7% 11.0% Paper 1.1% -- -- -- -- Pipelines -- 0.3% -- 0.6% -- Property/Casualty Ins -- 0.1% -- -- -- Publishing/Printing 3.7% -- -- -- -- Reits-Regional Malls -- -- 0.4% -- -- Services 3.2% -- -- -- -- SEE NOTES TO FINANCIAL STATEMENTS. 132 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- U. S. HIGH YIELD INTERMEDIATE SHORT TERM GOVERNMENT BOND BOND BOND BOND BOND ---------- ------ ------------ ---------- ---------- Sovereign -- 3.4% 13.3% 5.8% 1.0% Sovereign Agency -- -- 5.7% 6.7% -- Special Purpose Entity -- -- 1.2% -- -- Steel 2.1% -- -- -- -- Super-Regional Banks-U.S. -- -- 1.2% 2.1% -- Technology 10.0% -- -- -- -- Telephone-Integrated -- 0.6% -- 0.2% -- Transportation 13.2% -- -- ^ -- -- WL Collateral CMO IO -- -- 0.1% -- -- WL Collateral CMO Mezzanine -- -- 0.1% -- -- WL Collateral CMO Other -- 21.0% 13.1% 17.9% -- WL Collateral CMO Sequential -- 2.0% 5.4% 4.9% -- WL Collateral CMO Subordinate -- 0.4% 0.3% -- -- WL Collateral PAC -- -- 0.6% 0.6% -- WL Collateral Support -- 2.5% 7.3% -- -- ______________________________ ^ Amount is less than 0.05%. SEE NOTES TO FINANCIAL STATEMENTS. 133 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- STRUCTURED SMALL CAP MID CAP QUALITY LARGE CAP GROWTH GROWTH GROWTH PLUS(a) --------- ---------- ---------- ---------- ASSETS: Investments, at cost $ 101,703 $ 261,120 $ 549,955 $ 236,519 Net unrealized appreciation 26,792 77,670 88,248 13,773 --------- ---------- ---------- ---------- Investments, at value 128,495 338,790 638,203 250,292 Investment in affiliates, at value (cost $4,856, $5,510, $6,444, $5,170, $10,247, $1,171, $2,930, $2,974, $14,095, $21,394, and $161,013; respectively) 4,856 5,510 6,444 5,170 --------- ---------- ---------- ---------- Total Investments 133,351 344,300 644,647 255,462 Cash 17 -- -- ^ -- Interest, dividends and other receivables 29 49 454 195 Receivable for investments sold 4,039 7,916 -- 1,844 Receivable for Fund shares sold 24 36 55 12 Receivable from Advisor and affiliates -- -- -- -- Prepaid expenses and other assets 14 26 23 9 --------- ---------- ---------- ---------- Total Assets 137,474 352,327 645,179 257,522 --------- ---------- ---------- ---------- LIABILITIES: Securities sold short at value (Proceeds $--, $--, $--, $59,216, $--, $--, $--, $--, $--, $--, $--; respectively) -- -- -- 56,471 Cash Overdraft -- -- -- -- Payable for investments purchased 6,462 2,199 -- -- Payable for Fund shares redeemed 53 247 760 43 Payable for variation margin on futures contracts -- -- -- 85 Accrued expenses and other payables: Payable to Advisor and affiliates 100 312 556 137 Distribution and administration services fee 6 13 33 6 Other 60 53 172 47 --------- ---------- ---------- ---------- Total Liabilities 6,681 2,824 1,521 56,789 --------- ---------- ---------- ---------- NET ASSETS: Paid-in capital 76,099 237,832 483,120 189,341 Accumulated net investment income/(loss) (8) -- 50 598 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures, foreign currency, and securities sold short 27,910 34,001 72,240 (5,402) Net unrealized appreciation on investments, futures, foreign currency and securities sold short 26,792 77,670 88,248 16,196 --------- ---------- ---------- ---------- Net Assets $ 130,793 $ 349,503 $ 643,658 $ 200,733 ========= ========== ========== ========== NET ASSETS: Institutional Shares $ 112,591 $ 313,124 $ 535,734 $ 180,126 Class A Shares 16,036 29,103 92,728 18,972 Class B Shares 1,318 5,707 11,347 1,044 Class C Shares 426 802 2,275 125 Advisor Shares 422 767 1,574 466 Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA --------- ---------- ---------- ---------- Total $ 130,793 $ 349,503 $ 643,658 $ 200,733 ========= ========== ========== ========== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 8,391 19,951 28,922 10,630 Class A Shares 1,249 1,914 5,118 1,135 Class B Shares 108 399 656 63 Class C Shares 35 59 135 8 Advisor Shares 33 51 88 27 Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA --------- ---------- ---------- ---------- Total 9,816 22,374 34,919 11,863 ========= ========== ========== ========== Net Asset Value+ Institutional Shares $ 13.42 $ 15.70 $ 18.52 $ 16.95 ========= ========== ========== ========== Class A Shares--redemption price per share $ 12.84 $ 15.20 $ 18.12 $ 16.71 ========= ========== ========== ========== Class B Shares--offering price per share* $ 12.21 $ 14.31 $ 17.30 $ 16.69 ========= ========== ========== ========== Class C Shares--offering price per share* $ 12.23 $ 13.65 $ 16.85 $ 16.70 ========= ========== ========== ========== Advisor Shares--redemption price per share $ 12.81 $ 14.96 $ 17.89 $ 16.90 ========= ========== ========== ========== Select Shares NA NA NA NA ========= ========== ========== ========== Preferred Shares NA NA NA NA ========= ========== ========== ========== Trust Shares NA NA NA NA ========= ========== ========== ========== Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%--Maximum sales charge) of net charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 13.52 $ 16.00 $ 19.07 $ 17.59 ========= ========== ========== ========== Advisor Shares $ 13.24 $ 15.46 $ 18.49 $ 17.47 ========= ========== ========== ========== ________________ (a) Formerly the Large Cap Core Fund. * Redemption price per share varies by length of time shares are held. # Represents investments in affiliates. + Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS. 134 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- EQUITY MICRO CAP SMALL CAP INDEX BALANCED VALUE VALUE ---------- ---------- ---------- ---------- ASSETS: Investments, at cost $ 160,699 $ 53,939 $ 68,345 $ 106,194 Net unrealized appreciation 251,387 3,443 10,043 6,898 ---------- ---------- ---------- ---------- Investments, at value 412,086 57,382 78,388 113,092 Investment in affiliates, at value (cost $4,856, $5,510, $6,444, $5,170, $10,247, $1,171, $2,930, $2,974, $14,095, $21,394, and $161,013; respectively) 10,552 1,171 2,930 2,974 ---------- ---------- ---------- ---------- Total Investments 422,638 58,553 81,318 116,066 Cash -- 3 -- ^ -- Interest, dividends and other receivables 443 148 24 44 Receivable for investments sold -- 400 1,079 1,057 Receivable for Fund shares sold 516 4 73 11 Receivable from Advisor and affiliates -- -- -- -- Prepaid expenses and other assets 44 36 29 15 ---------- ---------- ---------- ---------- Total Assets 423,641 59,144 82,523 117,193 ---------- ---------- ---------- ---------- LIABILITIES: Securities sold short at value (Proceeds $--, $--, $--, $59,216, $--, $--, $--, $--, $--, $--, $--; respectively) -- -- -- -- Cash Overdraft -- -- -- -- Payable for investments purchased -- 1,576 1,999 1,014 Payable for Fund shares redeemed 314 54 82 264 Payable for variation margin on futures contracts 135 -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 30 23 59 107 Distribution and administration services fee 47 12 14 3 Other 83 42 50 35 ---------- ---------- ---------- ---------- Total Liabilities 609 1,707 2,204 1,423 ---------- ---------- ---------- ---------- NET ASSETS: Paid-in capital 191,195 93,946 52,283 97,332 Accumulated net investment income/(loss) 581 463 -- 434 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures, foreign currency, and securities sold short (19,986) (40,415) 17,993 11,106 Net unrealized appreciation on investments, futures, foreign currency and securities sold short 251,242 3,443 10,043 6,898 ---------- ---------- ---------- ---------- Net Assets $ 423,032 $ 57,437 $ 80,319 $ 115,770 ========== ========== ========== ========== NET ASSETS: Institutional Shares $ 193,180 $ 23,329 $ 51,541 $ 110,873 Class A Shares 65,640 26,863 11,486 2,198 Class B Shares 3,961 5,923 5,069 1,104 Class C Shares 2,223 1,201 2,853 713 Advisor Shares 2,264 121 9,370 882 Select Shares 17,852 NA NA NA Preferred Shares 69,251 NA NA NA Trust Shares 68,661 NA NA NA ---------- ---------- ---------- ---------- Total $ 423,032 $ 57,437 $ 80,319 $ 115,770 ========== ========== ========== ========== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 6,999 1,730 7,340 5,463 Class A Shares 2,386 2,003 1,706 109 Class B Shares 145 447 793 57 Class C Shares 81 91 446 37 Advisor Shares 82 9 1,414 45 Select Shares 647 NA NA NA Preferred Shares 2,510 NA NA NA Trust Shares 2,488 NA NA NA ---------- ---------- ---------- ---------- Total 15,338 4,280 11,699 5,711 ========== ========== ========== ========== Net Asset Value+ Institutional Shares $ 27.60 $ 13.49 $ 7.02 $ 20.29 ========== ========== ========== ========== Class A Shares--redemption price per share $ 27.51 $ 13.41 $ 6.73 $ 20.09 ========== ========== ========== ========== Class B Shares--offering price per share* $ 27.34 $ 13.25 $ 6.39 $ 19.34 ========== ========== ========== ========== Class C Shares--offering price per share* $ 27.37 $ 13.23 $ 6.39 $ 19.31 ========== ========== ========== ========== Advisor Shares--redemption price per share $ 27.47 $ 13.38 $ 6.63 $ 19.84 ========== ========== ========== ========== Select Shares $ 27.59 NA NA NA ========== ========== ========== ========== Preferred Shares $ 27.59 NA NA NA ========== ========== ========== ========== Trust Shares $ 27.60 NA NA NA ========== ========== ========== ========== Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%--Maximum sales charge) of net charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 28.96 $ 14.12 $ 7.08 $ 21.15 ========== ========== ========== ========== Advisor Shares $ 28.39 $ 13.83 $ 6.85 $ 20.51 ========== ========== ========== ========== DISCIPLINED MULTI CAP LARGE CAP LIFEMODEL VALUE VALUE AGGRESSIVE SM ---------- ----------- ---------- ASSETS: Investments, at cost $ 233,520 $ 548,985 $ -- Net unrealized appreciation 85,415 117,739 -- ---------- ----------- ---------- Investments, at value 318,935 666,724 -- Investment in affiliates, at value (cost $4,856, $5,510, $6,444, $5,170, $10,247, $1,171, $2,930, $2,974, $14,095, $21,394, and $161,013; respectively) 14,095 21,394 199,443 ---------- ----------- ---------- Total Investments 333,030 688,118 199,443 Cash -- -- 5 Interest, dividends and other receivables 603 851 9 Receivable for investments sold -- -- -- Receivable for Fund shares sold 229 734 242 Receivable from Advisor and affiliates -- -- 18 Prepaid expenses and other assets 23 108 18 ---------- ----------- ---------- Total Assets 333,885 689,811 199,735 ---------- ----------- ---------- LIABILITIES: Securities sold short at value (Proceeds $--, $--, $--, $59,216, $--, $--, $--, $--, $--, $--, $--; respectively) -- -- -- Cash Overdraft -- -- -- Payable for investments purchased -- -- -- Payable for Fund shares redeemed 330 1,098 61 Payable for variation margin on futures contracts -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 321 549 -- Distribution and administration services fee 53 14 32 Other 102 153 52 ---------- ----------- ---------- Total Liabilities 806 1,814 145 ---------- ----------- ---------- NET ASSETS: Paid-in capital 208,074 538,265 146,670 Accumulated net investment income/(loss) 191 941 1,212 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures, foreign currency, and securities sold short 39,399 31,052 13,278 Net unrealized appreciation on investments, futures, foreign currency and securities sold short 85,415 117,739 38,430 ---------- ----------- ---------- Net Assets $ 333,079 $ 687,997 $ 199,590 ========== =========== ========== NET ASSETS: Institutional Shares $ 223,709 $ 649,497 $ 119,437 Class A Shares 44,717 29,725 57,421 Class B Shares 23,974 5,872 18,547 Class C Shares 8,150 2,533 3,016 Advisor Shares 32,529 370 1,169 Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA ---------- ----------- ---------- Total $ 333,079 $ 687,997 $ 199,590 ========== =========== ========== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 8,723 45,124 7,205 Class A Shares 1,768 2,071 3,478 Class B Shares 985 405 1,151 Class C Shares 335 179 187 Advisor Shares 1,294 26 71 Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA ---------- ----------- ---------- Total 13,105 47,805 12,092 ========== =========== ========== Net Asset Value+ Institutional Shares $ 25.65 $ 14.39 $ 16.58 ========== =========== ========== Class A Shares--redemption price per share $ 25.30 $ 14.35 $ 16.51 ========== =========== ========== Class B Shares--offering price per share* $ 24.35 $ 14.49 $ 16.11 ========== =========== ========== Class C Shares--offering price per share* $ 24.32 $ 14.21 $ 16.11 ========== =========== ========== Advisor Shares--redemption price per share $ 25.14 $ 14.32 $ 16.50 ========== =========== ========== Select Shares NA NA NA ========== =========== ========== Preferred Shares NA NA NA ========== =========== ========== Trust Shares NA NA NA ========== =========== ========== Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%--Maximum sales charge) of net charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 26.63 $ 15.11 $ 17.38 ========== =========== ========== Advisor Shares $ 25.98 $ 14.80 $ 17.05 ========== =========== ========== SEE NOTES TO FINANCIAL STATEMENTS. 135 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- LIFEMODEL LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL STRATEGIC AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE(SM) CONSERVATIVE(SM) INCOME ---------- ---------- ------------ ------------ ---------- ASSETS: Investments, at cost $ -- $ -- $ -- $ -- $ 140,995 Net unrealized appreciation/(depreciation) -- -- -- -- 1,010 ---------- ---------- ------------ ------------ ---------- Investments, at value -- -- -- -- 142,005 Investment in affiliates, at value (cost $283,808, $461,368, $88,900, $50,037, $13,174, $374, $707, $--, $1,019, $689, $3,582, and $11,840; respectively) 342,517 512,616 98,995 51,792 13,174 ---------- ---------- ------------ ------------ ---------- Total Investments 342,517 512,616 98,995 51,792 155,179 Cash -- -- -- -- 3 Foreign currency, at value (cost $--, $--, $--, $--, $--, $--, $--, $1,742, $--, $--, $-- and $--; respectively) -- -- -- -- -- Interest, dividends and other receivables 8 13 4 1 1,051 Receivable for investments sold -- -- -- -- 55 Receivable for Fund shares sold 609 327 69 321 1 Unrealized appreciation on forward foreign currency contracts -- -- -- -- -- Receivable for variation margin on futures contracts -- -- -- -- -- Reclaims receivable -- -- -- -- -- Receivable from Advisor and affiliates 27 24 15 13 -- Prepaid expenses and other assets 17 128 41 31 64 ---------- ---------- ------------ ------------ ---------- Total Assets 343,178 513,108 99,124 52,158 156,353 ---------- ---------- ------------ ------------ ---------- LIABILITIES: Cash overdrafts -- -- -- -- -- Distributions payable -- -- -- -- 440 Payable for investments purchased -- -- -- -- -- Payable for Fund shares redeemed 542 622 364 73 93 Unrealized depreciation on forward foreign currency contracts -- -- -- -- -- Payable for variation margin on futures contracts -- -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates -- -- -- -- 109 Distribution and administration services fee 87 63 27 14 23 Other 95 223 59 38 -- ---------- ---------- ------------ ------------ ---------- Total Liabilities 724 908 450 125 665 ---------- ---------- ------------ ------------ ---------- NET ASSETS: Paid-in capital 260,025 431,919 83,367 49,032 153,001 Accumulated net investment income/(loss) 1,834 2,713 498 224 (97) Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency 21,886 26,320 4,714 1,022 1,774 Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 58,709 51,248 10,095 1,755 1,010 ---------- ---------- ------------ ------------ ---------- Net Assets $ 342,454 $ 512,200 $ 98,674 $ 52,033 $ 155,688 ========== ========== ============ ============ ========== Net Assets: Institutional Shares $ 146,973 $ 369,880 $ 41,336 $ 24,570 $ 116,454 Class A Shares 127,824 92,719 35,676 15,083 4,904 Class B Shares 56,679 43,013 18,839 9,242 1,528 Class C Shares 9,012 6,158 2,755 3,091 15,676 Advisor Shares 1,966 430 68 47 17,126 ---------- ---------- ------------ ------------ ---------- Total $ 342,454 $ 512,200 $ 98,674 $ 52,033 $ 155,688 ========== ========== ============ ============ ========== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 9,516 27,724 3,460 2,235 10,416 Class A Shares 8,292 6,958 2,991 1,375 440 Class B Shares 3,694 3,245 1,585 844 137 Class C Shares 587 464 232 282 1,416 Advisor Shares 128 32 6 4 1,537 ---------- ---------- ------------ ------------ ---------- Total 22,217 38,423 8,274 4,740 13,946 ========== ========== ============ ============ ========== Net Asset Value+ Institutional Shares $ 15.44 $ 13.34 $ 11.95 $ 10.99 $ 11.18 ========== ========== ============ ============ ========== Class A Shares--redemption price per share $ 15.42 $ 13.32 $ 11.93 $ 10.97 $ 11.15 ========== ========== ============ ============ ========== Class B Shares--offering price per share* $ 15.34 $ 13.25 $ 11.88 $ 10.95 $ 11.15 ========== ========== ============ ============ ========== Class C Shares--offering price per share* $ 15.34 $ 13.26 $ 11.89 $ 10.95 $ 11.07 ========== ========== ============ ============ ========== Advisor Shares--redemption price per share $ 15.41 $ 13.30 $ 11.92 $ 10.97 $ 11.14 ========== ========== ============ ============ ========== Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%--Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 16.22 $ 14.02 $ 12.56 $ 11.55 $ 11.74 ========== ========== ============ ============ ========== Advisor Shares $ 15.93 $ 13.75 $ 12.32 $ 11.34 $ 11.51 ========== ========== ============ ============ ========== _________________________ * Redemption price per share varies by length of time shares are held. + Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. ~ Advisor shares were liquidated May 11, 2007. See note 1. SEE NOTES TO FINANCIAL STATEMENTS. 136 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- DIVIDEND INTERNATIONAL HIGH YIELD GROWTH TECHNOLOGY EQUITY BOND ---------- ---------- ------------- ---------- ASSETS: Investments, at cost $ 20,327 $ 37,019 $ 364,887 $ 69,490 Net unrealized appreciation/(depreciation) 2,947 1,313 121,649 (2,942) ---------- ---------- ------------- ---------- Investments, at value 23,274 38,332 486,536 66,548 Investment in affiliates, at value (cost $283,808, $461,368, $88,900, $50,037, $13,174, $374, $707, $--, $1,019, $689, $3,582, and $11,840; respectively) 374 707 -- 1,019 ---------- ---------- ------------- ---------- Total Investments 23,648 39,039 486,536 67,567 Cash -- -- 11,481 -- Foreign currency, at value (cost $--, $--, $--, $--, $--, $--, $--, $1,742, $--, $--, $-- and $--; respectively) -- -- 1,744 -- Interest, dividends and other receivables 36 4 568 1,523 Receivable for investments sold 496 -- 3,576 -- Receivable for Fund shares sold -- ^ 28 186 5 Unrealized appreciation on forward foreign currency contracts -- -- 2,506 -- Receivable for variation margin on futures contracts -- -- 73 -- Reclaims receivable -- -- 368 -- Receivable from Advisor and affiliates 2 -- -- -- Prepaid expenses and other assets 22 23 29 23 ---------- ---------- ------------- ---------- Total Assets 24,204 39,094 507,067 69,118 ---------- ---------- ------------- ---------- LIABILITIES: Cash overdrafts -- -- -- 365 Distributions payable -- -- -- -- Payable for investments purchased 487 -- 62 -- Payable for Fund shares redeemed 153 76 211 45 Unrealized depreciation on forward foreign currency contracts -- -- 1,866 -- Payable for variation margin on futures contracts -- -- 253 -- Accrued expenses and other payables: Payable to Advisor and affiliates -- 45 541 28 Distribution and administration services fee 2 3 12 -- ^ Other 24 20 129 15 ---------- ---------- ------------- ---------- Total Liabilities 666 144 3,074 453 ---------- ---------- ------------- ---------- NET ASSETS: Paid-in capital 34,323 75,986 360,372 72,008 Accumulated net investment income/(loss) 24 1 8,390 50 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency (13,756) (38,350) 13,192 (451) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 2,947 1,313 122,039 (2,942) ---------- ---------- ------------- ---------- Net Assets $ 23,538 $ 38,950 $ 503,993 $ 68,665 ========== ========== ============= ========== Net Assets: Institutional Shares $ 18,875 $ 31,507 $ 469,183 $ 68,193 Class A Shares 3,926 3,110 21,533 175 Class B Shares 369 743 2,677 156 Class C Shares 356 158 878 127 Advisor Shares 12 3,432 9,722 14 ---------- ---------- ------------- ---------- Total $ 23,538 $ 38,950 $ 503,993 $ 68,665 ========== ========== ============= ========== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 740 2,714 30,181 7,125 Class A Shares 157 273 1,386 18 Class B Shares 15 69 176 16 Class C Shares 15 15 59 13 Advisor Shares 1 305 627 2 ---------- ---------- ------------- ---------- Total 928 3,376 32,429 7,174 ========== ========== ============= ========== Net Asset Value+ Institutional Shares $ 25.50 $ 11.61 $ 15.55 $ 9.57 ========== ========== ============= ========== Class A Shares--redemption price per share $ 25.07 $ 11.41 $ 15.54 $ 9.57 ========== ========== ============= ========== Class B Shares--offering price per share* $ 24.31 $ 10.83 $ 15.21 $ 9.56 ========== ========== ============= ========== Class C Shares--offering price per share* $ 23.67 $ 10.80 $ 14.81 $ 9.57 ========== ========== ============= ========== Advisor Shares--redemption price per share $ 24.98 $ 11.23 $ 15.50 $ 9.57 ========== ========== ============= ========== Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 4.75% Advisor Shares 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%--Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 26.39 $ 12.01 $ 16.36 $ 10.05 ========== ========== ============= ========== Advisor Shares $ 25.82 $ 11.61 $ 16.02 $ 9.89 ========== ========== ============= ========== INTERMEDIATE SHORT TERM BOND BOND BOND ---------- ------------ ---------- ASSETS: Investments, at cost $ 264,511 $ 499,850 $ 270,505 Net unrealized appreciation/(depreciation) (4,544) (3,084) (1,802) ---------- ------------ ---------- Investments, at value 259,967 496,766 268,703 Investment in affiliates, at value (cost $283,808, $461,368, $88,900, $50,037, $13,174, $374, $707, $--, $1,019, $689, $3,582, and $11,840; respectively) 689 3,582 11,840 ---------- ------------ ---------- Total Investments 260,656 500,348 280,543 Cash 1,311 -- -- Foreign currency, at value (cost $--, $--, $--, $--, $--, $--, $--, $1,742, $--, $--, $-- and $--; respectively) -- -- -- Interest, dividends and other receivables 1,450 3,716 1,685 Receivable for investments sold 1 3,499 166 Receivable for Fund shares sold 132 58 213 Unrealized appreciation on forward foreign currency contracts -- -- -- Receivable for variation margin on futures contracts -- -- -- Reclaims receivable -- -- -- Receivable from Advisor and affiliates -- -- -- Prepaid expenses and other assets 25 150 53 ---------- ------------ ---------- Total Assets 263,575 507,771 282,660 ---------- ------------ ---------- LIABILITIES: Cash overdrafts -- 139 63 Distributions payable -- -- -- Payable for investments purchased 22,132 2,660 5,065 Payable for Fund shares redeemed 283 239 88 Unrealized depreciation on forward foreign currency contracts -- -- -- Payable for variation margin on futures contracts -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 124 243 124 Distribution and administration services fee 4 5 2 Other 47 191 106 ---------- ------------ ---------- Total Liabilities 22,590 3,477 5,448 ---------- ------------ ---------- NET ASSETS: Paid-in capital 249,040 548,500 302,616 Accumulated net investment income/(loss) 83 9 (2) Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency (3,594) (41,131) (23,600) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency (4,544) (3,084) (1,802) ---------- ------------ ---------- Net Assets $ 240,985 $ 504,294 $ 277,212 ========== ============ ========== Net Assets: Institutional Shares $ 230,154 $ 484,463 $ 267,348 Class A Shares 8,223 17,371 9,704 Class B Shares 2,151 1,900 NA Class C Shares 225 457 160 Advisor Shares 232 103 -- ~ ---------- ------------ ---------- Total $ 240,985 $ 504,294 $ 277,212 ========== ============ ========== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 23,776 50,809 28,694 Class A Shares 850 1,816 1,042 Class B Shares 222 200 NA Class C Shares 23 48 17 Advisor Shares 24 11 --~ ---------- ------------ ---------- Total 24,895 52,884 29,753 ========== ============ ========== Net Asset Value+ Institutional Shares $ 9.68 $ 9.53 $ 9.32 ========== ============ ========== Class A Shares--redemption price per share $ 9.67 $ 9.56 $ 9.31 ========== ============ ========== Class B Shares--offering price per share* $ 9.68 $ 9.50 NA ========== ============ ========== Class C Shares--offering price per share* $ 9.68 $ 9.53 $ 9.32 ========== ============ ========== Advisor Shares--redemption price per share $ 9.68 $ 9.52 -- ~ ========== ============ ========== Maximum Sales Charge Class A Shares 4.75% 3.50% 3.50% Advisor Shares 3.25% 2.00% -- ~ Maximum Offering Price (100%/(100%--Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 10.15 $ 9.91 $ 9.65 ========== ============ ========== Advisor Shares $ 10.01 $ 9.71 -- ~ ========== ============ ========== SEE NOTES TO FINANCIAL STATEMENTS. 137 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- U.S. INTERMEDIATE OHIO MICHIGAN GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND BOND ---------- --------- ------------ ---------- --------- ASSETS: Investments, at cost $ 24,658 $ 45,245 $ 156,610 $ 101,319 $ 49,542 Net unrealized appreciation/(depreciation) (469) 758 1,641 484 (338) ---------- --------- ------------ ---------- --------- Investments, at value 24,189 46,003 158,251 101,803 49,204 Investment in affiliates, at value (cost $6,113, $--, $--, $--, $--; respectively) 6,113 -- -- -- -- ---------- --------- ------------ ---------- --------- Total Investments 30,302 46,003 158,251 101,803 49,204 Interest, dividends and other receivables 149 533 1,491 991 553 Receivable for Fund shares sold 7 21 12 -- -- Prepaid expenses and other assets 36 30 72 15 3 ---------- --------- ------------ ---------- --------- Total Assets 30,494 46,587 159,826 102,809 49,760 ---------- --------- ------------ ---------- --------- LIABILITIES: Payable for investments purchased -- -- 8,173 2,053 614 Payable for Fund shares redeemed 62 -- ^ -- 5 -- Accrued expenses and other payables: Payable to Advisor and affiliates 9 11 65 52 16 Distribution and administration services fee 3 1 1 6 1 Other 30 31 74 46 -- ---------- --------- ------------ ---------- --------- Total Liabilities 104 43 8,313 2,162 631 ---------- --------- ------------ ---------- --------- NET ASSETS: Paid-in capital 31,077 45,584 149,530 99,508 49,819 Accumulated net investment income/(loss) 272 86 7 235 (2) Accumulated net realized gain/(loss) from investment transactions, options contracts, futures (490) 116 335 420 (350) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency (469) 758 1,641 484 (338) ---------- --------- ------------ ---------- --------- Net Assets $ 30,390 $ 46,544 $ 151,513 $ 100,647 $ 49,129 ========== ========= ============ ========== ========= Net Assets: Institutional Shares $ 25,092 $ 44,234 $ 149,016 $ 81,780 $ 43,905 Class A Shares 4,068 1,231 2,038 15,451 4,511 Class B Shares NA 864 358 2,682 568 Class C Shares 1,230 43 101 734 145 Advisor Shares -- ~ 172 -- ~ -- ~ -- ~ ---------- --------- ------------ ---------- --------- Total $ 30,390 $ 46,544 $ 151,513 $ 100,647 $ 49,129 ========== ========= ============ ========== ========= Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 2,512 4,747 14,979 8,201 4,437 Class A Shares 407 132 205 1,548 457 Class B Shares NA 93 36 275 57 Class C Shares 124 5 10 74 15 Advisor Shares -- ~ 18 -- ~ -- ~ -- ~ ---------- --------- ------------ ---------- --------- Total 3,043 4,995 15,230 10,098 4,966 ========== ========= ============ ========== ========= Net Asset Value+ Institutional Shares $ 9.99 $ 9.32 $ 9.95 $ 9.97 $ 9.90 ========== ========= ============ ========== ========= Class A Shares--redemption price per share $ 9.99 $ 9.36 $ 9.95 $ 9.98 $ 9.88 ========== ========= ============ ========== ========= Class B Shares--offering price per share* NA $ 9.29 $ 9.94 $ 9.75 $ 9.88 ========== ========= ============ ========== ========= Class C Shares--offering price per share* $ 9.92 $ 9.32 $ 9.95 $ 9.94 $ 9.89 ========== ========= ============ ========== ========= Advisor Shares--redemption price per share -- ~ $ 9.31 -- ~ -- ~ -- ~ ========== ========= ============ ========== ========= Maximum Sales Charge Class A Shares 4.75% 4.75% 3.50% 4.75% 4.75% Advisor Shares -- ~ 3.25% -- ~ -- ~ -- ~ Maximum Offering Price (100%/(100%--Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 10.49 $ 9.83 $ 10.31 $ 10.48 $ 10.37 ========== ========= ============ ========== ========= Advisor Shares -- ~ $ 9.62 -- ~ -- ~ -- ~ ========== ========= ============ ========== ========= ______________________ * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred dollars. + Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. ~ Advisor shares were liquidated May 11, 2007. See note 1.~ SEE NOTES TO FINANCIAL STATEMENTS. 138 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- STRUCTURED SMALL CAP MID CAP QUALITY LARGE CAP EQUITY GROWTH GROWTH GROWTH PLUS(a) INDEX ---------- --------- ---------- ---------- --------- INVESTMENT INCOME: Dividend income $ 486 $ 2,201 $ 11,304 $ 4,226 $ 8,704 Foreign tax withholding (1) -- -- (1) -- Income from securities lending 146 108 108 21 41 Other income -- -- -- 54 -- ---------- --------- ---------- ---------- --------- Total Investment Income 631 2,309 11,412 4,300 8,745 ---------- --------- ---------- ---------- --------- EXPENSES: Dividends on securities sold short -- -- -- 48 -- Investment advisory fees 1,058 3,019 5,730 1,559 1,295 Administration fees 262 654 1,240 386 748 Distribution services fees-Class A Shares 44 81 265 54 170 Distribution services fees-Class B Shares 14 63 125 11 43 Distribution services fees-Class C Shares 3 7 21 1 17 Distribution services fees-Advisor Shares 2 4 10 1 10 Administrative servicing fees-Class C Shares 1 2 7 -- ^ 5 Administrative servicing fees-Select Shares NA NA NA NA 15 Administrative servicing fees-Preferred Shares NA NA NA NA 104 Administrative servicing fees-Trust Shares NA NA NA NA 177 Accounting fees 70 113 168 83 153 Registration and filing fees 43 47 57 40 46 Transfer and dividend disbursing agent fees 70 133 323 81 128 Custody fees 21 20 31 20 41 Trustees' fees and expenses 11 21 40 15 26 Other expenses 60 126 294 98 185 ---------- --------- ---------- ---------- --------- Total expenses 1,659 4,290 8,311 2,397 3,163 ---------- --------- ---------- ---------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (69) (19) (177) (233) (1,802) ---------- --------- ---------- ---------- --------- Net Expenses 1,590 4,271 8,134 2,164 1,361 ---------- --------- ---------- ---------- --------- Net Investment Income (959) (1,962) 3,278 2,136 7,384 ---------- --------- ---------- ---------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES: Net realized gains on investment and option transactions 31,785 48,398 95,370 26,176 20,348 Net realized gains on futures transactions -- -- -- 1,024 2,137 Change in unrealized appreciation/depreciation on investments and futures (952) 15,159 36,701 (724) 32,586 ---------- --------- ---------- ---------- --------- Net realized and unrealized gains on investments and futures 30,833 63,557 132,071 26,476 55,071 Increase from payment by the Advisor -- 180 748 -- -- ---------- --------- ---------- ---------- --------- Change in net assets resulting from operations $ 29,874 $ 61,775 $ 136,097 $ 28,612 $ 62,455 ========== ========= ========== ========== ========= ________________________ (a) Formerly the Large Cap Core Fund. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS. 139 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- MICRO CAP SMALL CAP MULTI CAP BALANCED VALUE VALUE VALUE -------- ---------- ---------- ---------- INVESTMENT INCOME: Interest income $ 72 $ -- $ -- $ -- Dividend income 2,641 1,498 2,197 9,373 Foreign tax withholding -- -- -- (2) Income from securities lending 4 64 155 61 Other income -- -- -- -- -------- ---------- ---------- ---------- Total Investment Income 2,717 1,562 2,352 9,432 -------- ---------- ---------- ---------- EXPENSES: Investment advisory fees 574 1,029 1,171 3,593 Administration fees 124 178 225 622 Distribution services fees-Class A Shares 81 40 6 104 Distribution services fees-Class B Shares 68 58 12 238 Distribution services fees-Class C Shares 10 27 6 46 Distribution services fees-Advisor Shares 1 72 6 169 Administrative servicing fees-Class C Shares 3 9 2 15 Accounting fees 70 70 70 109 Registration and filing fees 44 45 27 42 Transfer and dividend disbursing agent fees 77 91 49 183 Custody fees 19 98 13 20 Trustees' fees and expenses 4 6 7 19 Other expenses 47 47 60 143 -------- ---------- ---------- ---------- Total expenses 1,122 1,770 1,654 5,303 -------- ---------- ---------- ---------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (270) (174) (61) (334) -------- ---------- ---------- ---------- Net Expenses 852 1,596 1,593 4,969 -------- ---------- ---------- ---------- Net Investment Income 1,865 (34) 759 4,463 -------- ---------- ---------- ---------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES: Net realized gains on investment transactions 3,833 18,680 12,223 43,764 Net realized losses on futures transactions (3) -- -- -- Realized gain distributions from underlying funds NA NA NA NA Change in unrealized appreciation/depreciation on investments and futures 2,710 (4,850) 1,351 14,549 -------- ---------- ---------- ---------- Net realized and unrealized gains on investments and futures 6,540 13,830 13,574 58,313 Increase from payment by the Advisor 190 -- -- -- -------- ---------- ---------- ---------- Change in net assets resulting from operations $ 8,595 $ 13,796 $ 14,333 $ 62,776 ======== ========== ========== ========== _____________________ # Income from affiliates. + Represents realized gains from investment transactions with affiliates. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS. 140 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- DISCIPLINED LIFEMODEL LARGE CAP LIFEMODEL MODERATELY LIFEMODEL VALUE AGGRESSIVE(SM) AGGRESSIVE(SM) MODERATE(SM) ----------- ------------- ------------- ----------- INVESTMENT INCOME: Interest income $ -- $ -- $ -- $ -- Dividend income 16,505 1,847 # 6,108 # 13,660 # Foreign tax withholding -- -- -- -- Income from securities lending 84 -- -- -- Other income -- -- -- -- ----------- ---------- ---------- ---------- Total Investment Income 16,589 1,847 6,108 13,660 ----------- ---------- ---------- ---------- EXPENSES: Investment advisory fees 5,262 292 521 799 Administration fees 1,139 337 602 923 Distribution services fees-Class A Shares 66 139 328 247 Distribution services fees-Class B Shares 61 185 572 445 Distribution services fees-Class C Shares 17 22 68 48 Distribution services fees-Advisor Shares 2 5 9 2 Administrative servicing fees-Class C Shares 6 7 23 16 Accounting fees 159 77 107 141 Registration and filing fees 51 33 37 37 Transfer and dividend disbursing agent fees 171 111 204 189 Custody fees 26 15 20 24 Trustees' fees and expenses 35 10 19 29 Other expenses 193 70 122 188 ----------- ---------- ---------- ---------- Total expenses 7,188 1,303 2,632 3,088 ----------- ---------- ---------- ---------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (284) (787) (1,354) (1,903) ----------- ---------- ---------- ---------- Net Expenses 6,904 516 1,278 1,185 ----------- ---------- ---------- ---------- Net Investment Income 9,685 1,331 4,830 12,475 ----------- ---------- ---------- ---------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES: Net realized gains on investment transactions 49,838 537 + 3,573 + 6,016 + Net realized losses on futures transactions -- -- -- -- Realized gain distributions from underlying funds NA 14,140 + 20,710 + 23,819 + Change in unrealized appreciation/depreciation on investments and futures 24,718 14,305 18,609 20,732 ----------- ---------- ---------- ---------- Net realized and unrealized gains on investments and futures 74,556 28,982 42,892 50,567 Increase from payment by the Advisor 97 -- -- -- ----------- ---------- ---------- ---------- Change in net assets resulting from operations $ 84,338 $ 30,313 $ 47,722 $ 63,042 =========== ========== ========== ========== LIFEMODEL MODERATELY LIFEMODEL STRATEGIC CONSERVATIVE(SM) CONSERVATIVE(SM) INCOME --------------- --------------- --------- INVESTMENT INCOME: Interest income $ -- $ -- $ 3,068 Dividend income 3,098 # 2,050 # 6,211 Foreign tax withholding -- -- -- Income from securities lending -- -- 29 Other income -- -- -- ------------ ------------ --------- Total Investment Income 3,098 2,050 9,308 ------------ ------------ --------- EXPENSES: Investment advisory fees 157 82 1,602 Administration fees 181 94 277 Distribution services fees-Class A Shares 93 39 12 Distribution services fees-Class B Shares 201 101 17 Distribution services fees-Class C Shares 23 25 137 Distribution services fees-Advisor Shares -- ^ -- ^ 99 Administrative servicing fees-Class C Shares 8 8 46 Accounting fees 69 70 72 Registration and filing fees 34 33 39 Transfer and dividend disbursing agent fees 60 38 78 Custody fees 12 10 12 Trustees' fees and expenses 6 3 9 Other expenses 42 21 67 ------------ ------------ --------- Total expenses 886 524 2,467 ------------ ------------ --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (477) (307) (457) ------------ ------------ --------- Net Expenses 409 217 2,010 ------------ ------------ --------- Net Investment Income 2,689 1,833 7,298 ------------ ------------ --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES: Net realized gains on investment transactions 1,714 + 346 + 1,943 Net realized losses on futures transactions -- -- -- Realized gain distributions from underlying funds 3,989 + 1,100 + NA Change in unrealized appreciation/depreciation on investments and futures 2,577 1,103 (1,791) ------------ ------------ --------- Net realized and unrealized gains on investments and futures 8,280 2,549 152 Increase from payment by the Advisor -- -- -- ------------ ------------ --------- Change in net assets resulting from operations $ 10,969 $ 4,382 $ 7,450 ============ ============ ========= SEE NOTES TO FINANCIAL STATEMENTS. 141 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- DIVIDEND INTERNATIONAL HIGH YIELD GROWTH TECHNOLOGY EQUITY BOND BOND -------- ---------- ------------- ---------- --------- INVESTMENT INCOME: Interest income $ -- $ -- $ 621 $ 5,015 $ 14,356 Dividend income 729 236 13,244 112 266 Foreign tax withholding -- (17) (982) -- -- Income from securities lending 1 18 265 26 11 Other income -- -- -- -- -- -------- ---------- ------------- ---------- --------- Total Investment Income 730 237 13,148 5,153 14,633 -------- ---------- ------------- ---------- --------- EXPENSES: Investment advisory fees 208 550 4,980 459 1,658 Administration fees 45 95 862 114 478 Distribution services fees-Class A Shares 11 10 70 -- ^ 25 Distribution services fees-Class B Shares 4 9 24 1 25 Distribution services fees-Class C Shares 3 4 7 1 2 Distribution services fees-Advisor Shares -- ^ 18 49 -- ^ 1 Administrative servicing fees-Class C Shares 1 1 2 -- ^ 1 Accounting fees 70 70 136 70 94 Registration and filing fees 45 41 50 24 44 Transfer and dividend disbursing agent fees 35 41 138 27 81 Custody fees 14 16 333 6 30 Trustees' fees and expenses 1 3 29 4 16 Other expenses 17 37 234 46 118 -------- ---------- ------------- ---------- --------- Total expenses 454 895 6,914 752 2,573 -------- ---------- ------------- ---------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (244) -- (33) (264) (531) Distribution services-Class A Shares and Class B Shares waived -- -- -- -- -- -------- ---------- ------------- ---------- --------- Net Expenses 210 895 6,881 488 2,042 -------- ---------- ------------- ---------- --------- Net Investment Income/(Loss) 520 (658) 6,267 4,665 12,591 -------- ---------- ------------- ---------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, OPTIONS, FUTURES, AND FOREIGN CURRENCY Net realized gains/(losses) on investment, option and foreign currency transactions 1,314 7,458 43,928 (451) 1,239 Net realized gains/(losses) on futures transactions -- -- 3,024 -- (70) Change in unrealized appreciation/depreciation on investments, options, futures and foreign currency 1,855 2,103 55,245 (938) (566) -------- ---------- ------------- ---------- --------- Net realized and unrealized gains/(losses) on investments, options, futures and foreign currency 3,169 9,561 102,197 (1,389) 603 Increase from payment by the Advisor 66 20 134 -- 124 -------- ---------- ------------- ---------- --------- Change in net assets resulting from operations $ 3,755 $ 8,923 $ 108,598 $ 3,276 $ 13,318 ======== ========== ============= ========== ========= _________________ ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS. 142 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- U.S. INTERMEDIATE SHORT TERM GOVERNMENT MUNICIPAL BOND BOND BOND BOND ------------ ---------- ---------- --------- INVESTMENT INCOME: Interest income $ 24,684 $ 11,843 $ 2,291 $ 1,894 Dividend income 791 342 204 8 Foreign tax withholding -- -- -- -- Income from securities lending 16 25 -- -- Other income -- -- -- -- ------------ ---------- ---------- --------- Total Investment Income 25,491 12,210 2,495 1,902 ------------ ---------- ---------- --------- EXPENSES: Investment advisory fees 2,546 1,321 271 234 Administration fees 802 457 85 74 Distribution services fees-Class A Shares 51 27 53 3 Distribution services fees-Class B Shares 20 -- -- 10 Distribution services fees-Class C Shares 5 1 11 -- ^ Distribution services fees-Advisor Shares -- ^ -- -- 1 Administrative servicing fees-Class C Shares 1 -- ^ 4 -- ^ Accounting fees 129 81 60 70 Registration and filing fees 43 45 36 31 Transfer and dividend disbursing agent fees 117 76 27 24 Custody fees 31 19 7 10 Trustees' fees and expenses 28 15 3 3 Other expenses 186 95 29 34 ------------ ---------- ---------- --------- Total expenses 3,959 2,137 586 494 ------------ ---------- ---------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (642) (419) (178) (219) Distribution services-Class A Shares and Class B Shares waived (14) -- -- -- ------------ ---------- ---------- --------- Net Expenses 3,303 1,718 408 275 ------------ ---------- ---------- --------- Net Investment Income/(Loss) 22,188 10,492 2,087 1,627 ------------ ---------- ---------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, OPTIONS, FUTURES, AND FOREIGN CURRENCY Net realized gains/(losses) on investment, option and foreign currency transactions (1,228) (538) (645) 259 Net realized gains/(losses) on futures transactions -- -- -- -- Change in unrealized appreciation/depreciation on investments, options, futures and foreign currency 2,954 2,845 889 (282) ------------ ---------- ---------- --------- Net realized and unrealized gains/(losses) on investments, options, futures and foreign currency 1,726 2,307 244 (23) Increase from payment by the Advisor 160 -- 35 91 ------------ ---------- ---------- --------- Change in net assets resulting from operations $ 24,074 $ 12,799 $ 2,366 $ 1,695 ============ ========== ========== ========= INTERMEDIATE OHIO MICHIGAN MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND ------------ --------- --------- INVESTMENT INCOME: Interest income $ 6,797 $ 4,679 $ 1,891 Dividend income 47 3 25 Foreign tax withholding -- -- -- Income from securities lending -- -- -- Other income -- -- -- ------------ --------- --------- Total Investment Income 6,844 4,682 1,916 ------------ --------- --------- EXPENSES: Investment advisory fees 873 600 234 Administration fees 275 189 90 Distribution services fees-Class A Shares 6 53 12 Distribution services fees-Class B Shares 4 31 6 Distribution services fees-Class C Shares 1 8 1 Distribution services fees-Advisor Shares -- -- -- Administrative servicing fees-Class C Shares -- ^ 3 -- ^ Accounting fees 71 70 70 Registration and filing fees 41 42 33 Transfer and dividend disbursing agent fees 47 39 24 Custody fees 16 12 10 Trustees' fees and expenses 10 6 3 Other expenses 87 59 44 ------------ --------- --------- Total expenses 1,431 1,112 527 ------------ --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (333) (155) (154) Distribution services-Class A Shares and Class B Shares waived (3) -- (5) ------------ --------- --------- Net Expenses 1,095 957 368 ------------ --------- --------- Net Investment Income/(Loss) 5,749 3,725 1,548 ------------ --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, OPTIONS, FUTURES, AND FOREIGN CURRENCY Net realized gains/(losses) on investment, option and foreign currency transactions 845 521 (66) Net realized gains/(losses) on futures transactions -- -- -- Change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (902) (818) 166 ------------ --------- --------- Net realized and unrealized gains/(losses) on investments, options, futures and foreign currency (57) (297) 100 Increase from payment by the Advisor -- 135 -- ------------ --------- --------- Change in net assets resulting from operations $ 5,692 $ 3,563 $ 1,648 ============ ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 143 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- SMALL CAP MID CAP GROWTH GROWTH QUALITY GROWTH ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ (959) $ (1,426) $ (1,962) $ (1,152) $ 3,278 $ (2,049) Net realized gains on investment and option transactions 31,785 39,940 48,398 88,879 95,370 95,193 Net realized gains/(losses) on futures transactions -- 257 -- -- -- -- Net change in unrealized appreciation/ depreciation on investments, options and futures (952) (34,296) 15,159 (70,388) 36,701 (123,423) Increase from payment by the Advisor -- -- 180 -- 748 -- --------- --------- --------- --------- --------- --------- Change in net assets resulting from operations 29,874 4,475 61,775 17,339 136,097 (30,279) --------- --------- --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares -- -- -- (353) (2,837) -- Class A Shares -- -- -- (17) (377) -- Class B Shares -- -- -- -- (8) -- Class C Shares -- -- -- -- (1) -- Advisor Shares -- -- -- -- (5) -- Select Shares NA NA NA NA NA NA Preferred Shares NA NA NA NA NA NA Trust Shares NA NA NA NA NA NA Distributions from net realized gains: Institutional Shares (28,825) (19,569) (66,351) (4,028) (8,983) -- Class A Shares (3,859) (2,500) (6,625) (479) (1,649) -- Class B Shares (318) (211) (1,326) (85) (202) -- Class C Shares (93) (74) (236) (18) (47) -- Advisor Shares (101) (99) (156) (13) (35) -- --------- --------- --------- --------- --------- --------- Change in net assets from shareholder distributions (33,196) (22,453) (74,694) (4,993) (14,144) -- --------- --------- --------- --------- --------- --------- Change in net assets from Fund share transactions (12,946) (75,185) 1,410 (95,876) (228,195) (119,709) --------- --------- --------- --------- --------- --------- Change in net assets (16,268) (93,163) (11,509) (83,530) (106,242) (149,988) NET ASSETS: Beginning of period 147,061 240,224 361,012 444,542 749,900 899,888 --------- --------- --------- --------- --------- --------- End of period $ 130,793 $ 147,061 $ 349,503 $ 361,012 $ 643,658 $ 749,900 ========= ========= ========= ========= ========= ========= Accumulated net investment income/(loss) $ (8) $ (10) $ -- $ -- $ 50 $ -- ========= ========= ========= ========= ========= ========= ____________________ (a) Formerly the Large Cap Core Fund. (b) Reflects operations from the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS. 144 STRUCTURED LARGE CAP PLUS(a) EQUITY INDEX ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(b) 2007 2006 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 2,136 $ 2,002 $ 7,384 $ 6,743 Net realized gains on investment and option transactions 26,176 10,681 20,348 15,100 Net realized gains/(losses) on futures transactions 1,024 (163) 2,137 222 Net change in unrealized appreciation/ depreciation on investments, options and futures (724) (1,203) 32,586 (1,847) Increase from payment by the Advisor -- -- -- -- --------- --------- --------- --------- Change in net assets resulting from operations 28,612 11,317 62,455 20,218 --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (1,485) (1,749) (3,548) (3,218) Class A Shares (122) (180) (1,052) (1,082) Class B Shares (1) (2) (35) (36) Class C Shares -- -- ^ (18) (18) Advisor Shares -- -- ^ (27) (20) Select Shares NA NA (316) (301) Preferred Shares NA NA (1,143) (1,209) Trust Shares NA NA (1,096) (1,121) Distributions from net realized gains: Institutional Shares (679) (1,989) -- -- Class A Shares (75) (277) -- -- Class B Shares (4) (12) -- -- Class C Shares -- (2) -- -- Advisor Shares -- -- ^ -- -- --------- --------- --------- --------- Change in net assets from shareholder distributions (2,366) (4,211) (7,235) (7,005) --------- --------- --------- --------- Change in net assets from Fund share transactions (14,014) (13,554) (39,859) (25,827) --------- --------- --------- --------- Change in net assets 12,232 (6,448) 15,361 (12,614) NET ASSETS: Beginning of period 188,501 194,949 407,671 420,285 --------- --------- --------- --------- End of period $ 200,733 $ 188,501 $ 423,032 $ 407,671 ========= ========= ========= ========= Accumulated net investment income/(loss) $ 598 $ 87 $ 581 $ 434 ========= ========= ========= ========= MICRO CAP BALANCED VALUE ---------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 1,865 $ 1,772 $ (34) $ 20 Net realized gains on investment and option transactions 3,833 8,157 18,680 41,836 Net realized gains/(losses) on futures transactions (3) -- -- -- Net change in unrealized appreciation/ depreciation on investments, options and futures 2,710 (11,421) (4,850) (39,004) Increase from payment by the Advisor 190 -- -- -- --------- --------- --------- --------- Change in net assets resulting from operations 8,595 (1,492) 13,796 2,852 --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (826) (922) (409) (84) Class A Shares (781) (807) (85) (7) Class B Shares (117) (85) (8) -- Class C Shares (21) (28) (3) -- Advisor Shares (3) (2) (63) -- Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA Distributions from net realized gains: Institutional Shares -- -- (14,807) (26,630) Class A Shares -- -- (3,754) (5,289) Class B Shares -- -- (1,399) (2,148) Class C Shares -- -- (699) (1,672) Advisor Shares -- -- (3,728) (6,413) --------- --------- --------- --------- Change in net assets from shareholder distributions (1,748) (1,844) (24,955) (42,243) --------- --------- --------- --------- Change in net assets from Fund share transactions (31,764) (48,640) (27,752) (18,958) --------- --------- --------- --------- Change in net assets (24,917) (51,976) (38,911) (58,349) NET ASSETS: Beginning of period 82,354 134,330 119,230 177,579 --------- --------- --------- --------- End of period $ 57,437 $ 82,354 $ 80,319 $ 119,230 ========= ========= ========= ========= Accumulated net investment income/(loss) $ 463 $ 134 $ -- $ -- ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 145 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- DISCIPLINED LARGE CAP SMALL CAP VALUE MULTI CAP VALUE VALUE ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 2007 2006(a) --------- --------- --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 759 $ 488 $ 4,463 $ 2,902 $ 9,685 $ 8,363 Net realized gains/(losses) on investment transactions 12,223 20,068 43,764 67,055 49,838 88,966 Realized gain distributions from underlying funds NA NA NA NA NA NA Net change in unrealized appreciation/ depreciation on investments 1,351 (18,289) 14,549 (43,868) 24,718 (44,459) Increase from payment by the Advisor -- -- -- -- 97 -- --------- --------- --------- --------- --------- --------- Change in net assets resulting from operations 14,333 2,267 62,776 26,089 84,338 52,870 --------- --------- --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (510) (288) (3,577) (2,147) (9,176) (7,875) Class A Shares (9) -- (487) (275) (333) (266) Class B Shares (2) -- (121) (53) (30) (24) Class C Shares (1) -- (35) (10) (11) (9) Advisor Shares (3) -- (307) (162) (3) (2) Distributions from net realized gains: Institutional Shares (15,397) (13,847) (37,807) (19,664) (83,952) (54,494) Class A Shares (303) (285) (6,142) (3,250) (3,384) (2,337) Class B Shares (155) (135) (3,665) (1,866) (819) (541) Class C Shares (97) (105) (914) (392) (292) (222) Advisor Shares (136) (147) (5,236) (2,894) (44) (16) --------- --------- --------- --------- --------- --------- Change in net assets from shareholder distributions (16,613) (14,807) (58,291) (30,713) (98,044) (65,786) --------- --------- --------- --------- --------- --------- Change in net assets from Fund share transactions (4,132) (30,546) 4,696 (50,529) 89,070 18,441 --------- --------- --------- --------- --------- --------- Change in net assets (6,412) (43,086) 9,181 (55,153) 75,364 5,525 NET ASSETS: Beginning of period 122,182 165,268 323,898 379,051 612,633 607,108 --------- --------- --------- --------- --------- --------- End of period $ 115,770 $ 122,182 $ 333,079 $ 323,898 $ 687,997 $ 612,633 ========= ========= ========= ========= ========= ========= Accumulated net investment income $ 434 $ 200 $ 191 $ 255 $ 941 $ 711 ========= ========= ========= ========= ========= ========= _________________________ (a) Reflects operations from the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. + Represents realized gains/(losses) from investment transactions with affiliates. SEE NOTES TO FINANCIAL STATEMENTS. 146 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- LIFEMODEL LIFEMODEL MODERATELY AGGRESSIVE(SM) AGGRESSIVE(SM) ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006(a) --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 1,331 $ 1,846 $ 4,830 $ 5,684 Net realized gains/(losses) on investment transactions 537 + (82) + 3,573 + 12 + Realized gain distributions from underlying funds 14,140 + 5,088 + 20,710 + 8,409 + Net change in unrealized appreciation/ depreciation on investments 14,305 (259) 18,609 (1,747) Increase from payment by the Advisor -- -- -- -- --------- --------- --------- --------- Change in net assets resulting from operations 30,313 6,593 47,722 12,358 --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (870) (1,151) (2,532) (2,542) Class A Shares (318) (540) (1,912) (2,296) Class B Shares (30) (115) (410) (563) Class C Shares (5) (16) (66) (93) Advisor Shares (4) (1) (22) (10) Distributions from net realized gains: Institutional Shares (2,955) (1,714) (3,623) (2,273) Class A Shares (1,460) (1,043) (3,243) (2,490) Class B Shares (498) (349) (1,409) (996) Class C Shares (79) (48) (228) (172) Advisor Shares (26) (1) (46) (5) --------- --------- --------- --------- Change in net assets from shareholder distributions (6,245) (4,978) (13,491) (11,440) --------- --------- --------- --------- Change in net assets from Fund share transactions 3,369 34,927 (18,844) 31,606 --------- --------- --------- --------- Change in net assets 27,437 36,542 15,387 32,524 NET ASSETS: Beginning of period 172,153 135,611 327,067 294,543 --------- --------- --------- --------- End of period $ 199,590 $ 172,153 $ 342,454 $ 327,067 ========= ========= ========= ========= Accumulated net investment income $ 1,212 $ 23 $ 1,834 $ 323 ========= ========= ========= ========= LIFEMODEL LIFEMODEL MODERATELY MODERATE(SM) CONSERVATIVE(SM) ---------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006(a) -------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 12,475 $ 12,348 $ 2,689 $ 2,836 Net realized gains/(losses) on investment transactions 6,016 + 703 + 1,714 + 1,257 + Realized gain distributions from underlying funds 23,819 + 10,525 + 3,989 + 1,770 + Net change in unrealized appreciation/ depreciation on investments 20,732 (6,444) 2,577 (2,737) Increase from payment by the Advisor -- -- -- -- --------- --------- --------- --------- Change in net assets resulting from operations 63,042 17,132 10,969 3,126 --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (9,595) (8,669) (1,282) (1,189) Class A Shares (2,218) (2,511) (999) (1,076) Class B Shares (678) (733) (387) (434) Class C Shares (96) (120) (59) (70) Advisor Shares (9) (4) (2) (2) Distributions from net realized gains: Institutional Shares (8,747) (6,249) (1,188) (888) Class A Shares (2,291) (2,006) (1,035) (940) Class B Shares (1,032) (828) (557) (522) Class C Shares (146) (142) (88) (84) Advisor Shares (11) (2) (2) (1) --------- --------- --------- --------- Change in net assets from shareholder distributions (24,823) (21,264) (5,599) (5,206) --------- --------- --------- --------- Change in net assets from Fund share transactions (46,661) 26,544 (10,466) (983) --------- --------- --------- --------- Change in net assets (8,442) 22,412 (5,096) (3,063) NET ASSETS: Beginning of period 520,642 498,230 103,770 106,833 --------- --------- --------- --------- End of period $ 512,200 $ 520,642 $ 98,674 $ 103,770 ========= ========= ========= ========= Accumulated net investment income $ 2,713 $ 939 $ 498 $ 218 ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 147 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- LIFEMODEL STRATEGIC CONSERVATIVE(SM) INCOME DIVIDEND GROWTH --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006 2007 2006(a) --------- -------- --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 1,833 $ 1,918 $ 7,298 $ 6,795 $ 520 $ 233 Net realized gains/(losses) on investment and option transactions 346 + 503 + 1,943 1,927 1,314 2,473 Net realized gains/(losses) on futures transactions -- -- -- -- -- -- Realized gain distributions from underlying funds 1,100 + 631 + NA NA NA NA Net change in unrealized appreciation/ depreciation on investments, options and futures 1,103 (1,657) (1,791) (5,228) 1,855 (1,483) Increase from payment by the Advisor -- -- -- -- 66 -- --------- -------- --------- --------- --------- --------- Change in net assets resulting from operations 4,382 1,395 7,450 3,494 3,755 1,223 --------- -------- --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (942) (870) (5,549) (4,619) (412) (178) Class A Shares (546) (615) (216) (218) (76) (53) Class B Shares (277) (295) (65) (69) (4) (3) Class C Shares (90) (109) (702) (861) (4) (3) Advisor Shares (2) (1) (852) (1,065) -- ^ -- ^ Distributions from net realized gains: Institutional Shares (509) (234) (1,091) (297) -- -- Class A Shares (315) (188) (43) (15) -- -- Class B Shares (206) (117) (17) (6) -- -- Class C Shares (67) (46) (180) (74) -- -- Advisor Shares (1) -- ^ (195) (80) -- -- --------- -------- --------- --------- --------- --------- Change in net assets from shareholder distributions (2,955) (2,475) (8,910) (7,304) (496) (237) --------- -------- --------- --------- --------- --------- Change in net assets from Fund share transactions (3,986) (4,570) 3,102 (8,104) (923) 6,329 --------- -------- --------- --------- --------- --------- Change in net assets (2,559) (5,650) 1,642 (11,914) 2,336 7,315 NET ASSETS: Beginning of period 54,592 60,242 154,046 165,960 21,202 13,887 --------- -------- --------- --------- --------- --------- End of period $ 52,033 $ 54,592 $ 155,688 $ 154,046 $ 23,538 $ 21,202 ========= ======== ========= ========= ========= ========= Accumulated net investment income/(loss) $ 224 $ 156 $ (97) $ (100) $ 24 $ -- ========= ======== ========= ========= ========= ========= ______________________ (a) Reflects operations from the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. (b) Reflects operations for the period from November 29, 2005 (date of commencement of operations) to July 31, 2006. ^ Represents fewer than five hundred dollars. + Represents realized gains from investment transactions with affiliates. SEE NOTES TO FINANCIAL STATEMENTS. 148 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INTERNATIONAL TECHNOLOGY EQUITY -------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 -------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ (658) $ (707) $ 6,267 $ 5,183 Net realized gains/(losses) on investment and option transactions 7,458 2,359 43,928 16,142 Net realized gains/(losses) on futures transactions -- -- 3,024 3,059 Realized gain distributions from underlying funds -- -- -- -- Net change in unrealized appreciation/ depreciation on investments, options and futures 2,103 (3,384) 55,245 64,678 Increase from payment by the Advisor 20 -- 134 -- -------- --------- --------- --------- Change in net assets resulting from operations 8,923 (1,732) 108,598 89,062 -------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares -- -- (3,674) (6,678) Class A Shares -- -- (208) (320) Class B Shares -- -- (11) (14) Class C Shares -- -- (5) (10) Advisor Shares -- -- (64) (102) Distributions from net realized gains: Institutional Shares -- -- (8,232) (9,322) Class A Shares -- -- (542) (525) Class B Shares -- -- (45) (36) Class C Shares -- -- (20) (26) Advisor Shares -- -- (191) (231) -------- --------- --------- --------- Change in net assets from shareholder distributions -- -- (12,992) (17,264) -------- --------- --------- --------- Change in net assets from Fund share transactions (25,185) 10,315 (66,740) 85,787 -------- --------- --------- --------- Change in net assets (16,262) 8,583 28,866 157,585 NET ASSETS: Beginning of period 55,212 46,629 475,127 317,542 -------- --------- --------- --------- End of period $ 38,950 $ 55,212 $ 503,993 $ 475,127 ======== ========= ========= ========= Accumulated net investment income/(loss) $ 1 $ -- $ 8,390 $ 1,428 ======== ========= ========= ========= HIGH YIELD BOND BOND --------------------- --------------------- YEAR PERIOD YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(b) 2007 2006 -------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 4,665 $ 2,423 $ 12,591 $ 11,962 Net realized gains/(losses) on investment and option transactions (451) 230 1,239 (2,853) Net realized gains/(losses) on futures transactions -- -- (70) -- Realized gain distributions from underlying funds -- -- -- -- Net change in unrealized appreciation/ depreciation on investments, options and futures (938) (2,004) (566) (5,788) Increase from payment by the Advisor -- -- 124 -- -------- --------- --------- --------- Change in net assets resulting from operations 3,276 649 13,318 3,321 -------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (4,610) (2,421) (12,368) (12,002) Class A Shares (13) (7) (450) (581) Class B Shares (8) (2) (91) (107) Class C Shares (5) (2) (10) (16) Advisor Shares (1) -- ^ (9) (16) Distributions from net realized gains: Institutional Shares (213) -- -- (1,723) Class A Shares (1) -- -- (89) Class B Shares -- ^ -- -- (19) Class C Shares -- ^ -- -- (3) Advisor Shares -- ^ -- -- (3) -------- --------- --------- --------- Change in net assets from shareholder distributions (4,851) (2,432) (12,928) (14,559) -------- --------- --------- --------- Change in net assets from Fund share transactions 3,819 68,204 (26,437) (34,827) -------- --------- --------- --------- Change in net assets 2,244 66,421 (26,047) (46,065) NET ASSETS: Beginning of period 66,421 -- 267,032 313,097 -------- --------- --------- --------- End of period $ 68,665 $ 66,421 $ 240,985 $ 267,032 ======== ========= ========= ========= Accumulated net investment income/(loss) $ 50 $ 22 $ 83 $ 27 ======== ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 149 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INTERMEDIATE SHORT TERM U.S. GOVERNMENT BOND BOND BOND ---------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006(a) 2007 2006(a) --------- --------- --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 22,188 $ 22,954 $ 10,492 $ 9,950 $ 2,087 $ 2,197 Net realized gains/(losses) on investment transactions (1,228) (10,643) (538) (1,687) (645) (205) Net change in unrealized appreciation/ depreciation on investments, options and futures 2,954 (3,876) 2,845 (55) 889 (991) Increase from payment by the Advisor 160 -- -- -- 35 -- --------- --------- --------- --------- --------- --------- Change in net assets resulting from operations 24,074 8,435 12,799 8,208 2,366 1,001 --------- --------- --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (21,462) (22,657) (10,428) (11,345) (1,039) (1,092) Class A Shares (927) (1,162) (412) (541) (743) (848) Class B Shares (94) (118) NA NA NA NA Class C Shares (26) (34) (6) (7) (43) (58) Advisor Shares (3) -- ^ -- ^~ -- ^ -- ^~ -- ^ Distributions to shareholders from paid-in capital (tax return of capital): Institutional Shares (157) -- (224) -- -- -- Class A Shares (7) -- (10) -- -- -- Class B Shares (1) -- NA NA NA NA Class C Shares -- ^ -- -- ^ -- -- -- Advisor Shares -- ^ -- -- ^~ -- -- ~ -- Distributions from net realized gains: Institutional Shares -- -- -- -- -- (79) Class A Shares -- -- -- -- -- (68) Class B Shares -- -- NA NA NA NA Class C Shares -- -- -- -- -- (6) Advisor Shares -- -- -- ~ -- -- ~ -- ^ --------- --------- --------- --------- --------- --------- Change in net assets from shareholder distributions (22,677) (23,971) (11,080) (11,893) (1,825) (2,151) --------- --------- --------- --------- --------- --------- Change in net assets from Fund share transactions 35,874 (95,752) 4,500 (76,710) (24,628) (7,677) --------- --------- --------- --------- --------- --------- Change in net assets 37,271 (111,288) 6,219 (80,395) (24,087) (8,827) NET ASSETS: Beginning of period 467,023 578,311 270,993 351,388 54,477 63,304 --------- --------- --------- --------- --------- --------- End of period $ 504,294 $ 467,023 $ 277,212 $ 270,993 $ 30,390 $ 54,477 ========= ========= ========= ========= ========= ========= Accumulated net investment income/(loss) $ 9 $ 69 $ (2) $ 15 $ 272 $ 154 ========= ========= ========= ========= ========= ========= ________________________ (a) Reflects operations from the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. ~ Advisor share were liquidated May 11, 2007. See Note 1. SEE NOTES TO FINANCIAL STATEMENTS. 150 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL MUNICIPAL BOND BOND --------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006(a) --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 1,627 $ 1,812 $ 5,749 $ 6,633 Net realized gains/(losses) on investment transactions 259 314 845 (60) Net change in unrealized appreciation/ depreciation on investments, options and futures (282) (1,445) (902) (3,858) Increase from payment by the Advisor 91 -- -- -- --------- --------- --------- --------- Change in net assets resulting from operations 1,695 681 5,692 2,715 --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (1,556) (1,688) (5,652) (6,495) Class A Shares (48) (55) (77) (93) Class B Shares (28) (36) (4) (24) Class C Shares (1) (4) (2) (3) Advisor Shares (5) (10) -- ^~ -- ^ Distributions to shareholders from paid-in capital (tax return of capital): Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class B Shares -- -- -- -- Class C Shares -- -- -- -- Advisor Shares -- -- -- -- Distributions from net realized gains: Institutional Shares (419) (2,037) (484) (2,353) Class A Shares (14) (70) (7) (36) Class B Shares (10) (65) (1) (11) Class C Shares -- ^ (8) -- ^ (2) Advisor Shares (2) (16) -- ^~ -- ^ --------- --------- --------- --------- Change in net assets from shareholder distributions (2,083) (3,989) (6,227) (9,017) --------- --------- --------- --------- Change in net assets from Fund share transactions 4,763 (7,998) (15,586) (35,350) --------- --------- --------- --------- Change in net assets 4,375 (11,306) (16,121) (41,652) NET ASSETS: Beginning of period 42,169 53,475 167,634 209,286 --------- --------- --------- --------- End of period $ 46,544 $ 42,169 $ 151,513 $ 167,634 ========= ========= ========= ========= Accumulated net investment income/(loss) $ 86 $ 12 $ 7 $ 15 ========= ========= ========= ========= OHIO MUNICIPAL MICHIGAN MUNICIPAL BOND BOND --------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006(a) --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 3,725 $ 4,309 $ 1,548 $ 1,886 Net realized gains/(losses) on investment transactions 521 (203) (66) (247) Net change in unrealized appreciation/ depreciation on investments, options and futures (818) (2,512) 166 (755) Increase from payment by the Advisor 135 -- -- -- --------- --------- --------- --------- Change in net assets resulting from operations 3,563 1,594 1,648 884 --------- --------- --------- --------- Distributions to shareholders from net investment income: Institutional Shares (2,914) (3,375) (1,405) (1,725) Class A Shares (676) (812) (136) (136) Class B Shares (80) (100) (12) (15) Class C Shares (25) (48) (4) (5) Advisor Shares -- ~ -- ^ -- ^~ -- ^ Distributions to shareholders from paid-in capital (tax return of capital): Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class B Shares -- -- -- -- Class C Shares -- -- -- -- Advisor Shares -- -- -- -- Distributions from net realized gains: Institutional Shares (84) (240) -- -- Class A Shares (22) (63) -- -- Class B Shares (3) (10) -- -- Class C Shares (1) (4) -- -- Advisor Shares -- ~ -- ^ -- ~ -- --------- --------- --------- --------- Change in net assets from shareholder distributions (3,805) (4,652) (1,557) (1,881) --------- --------- --------- --------- Change in net assets from Fund share transactions (12,505) (24,071) (7,166) (23,235) --------- --------- --------- --------- Change in net assets (12,747) (27,129) (7,075) (24,232) NET ASSETS: Beginning of period 113,394 140,523 56,204 80,436 --------- --------- --------- --------- End of period $ 100,647 $ 113,394 $ 49,129 $ 56,204 ========= ========= ========= ========= Accumulated net investment income/(loss) $ 235 $ 6 $ (2) $ 2 ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 151 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- SMALL CAP GROWTH MID CAP GROWTH QUALITY GROWTH ----------------------- ----------------------- ----------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 17,553 $ 13,485 $ 40,251 $ 46,492 $ 31,611 $ 117,271 Dividends reinvested 28,551 19,476 66,135 4,159 9,949 -- Shares redeemed (57,730) (104,269) (100,373) (136,084) (223,621) (183,406) --------- --------- --------- --------- --------- --------- Total Institutional Shares (11,626) (71,308) 6,013 (85,433) (182,061) (66,135) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 2,120 2,925 1,293 2,329 1,575 3,847 Dividends reinvested 3,793 2,452 6,389 487 1,865 -- Shares redeemed (7,035) (8,398) (11,596) (11,762) (43,604) (50,363) --------- --------- --------- --------- --------- --------- Total Class A Shares (1,122) (3,021) (3,914) (8,946) (40,164) (46,516) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 30 66 94 647 125 508 Dividends reinvested 305 201 1,245 80 206 -- Shares redeemed (364) (490) (1,776) (1,253) (4,286) (4,375) --------- --------- --------- --------- --------- --------- Total Class B Shares (29) (223) (437) (526) (3,955) (3,867) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 34 60 79 231 75 187 Dividends reinvested 89 68 229 18 47 -- Shares redeemed (58) (315) (549) (783) (1,510) (2,073) --------- --------- --------- --------- --------- --------- Total Class C Shares 65 (187) (241) (534) (1,388) (1,886) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 5 49 68 224 395 595 Dividends reinvested 98 90 146 9 32 -- Shares redeemed (337) (585) (225) (670) (1,054) (1,900) --------- --------- --------- --------- --------- --------- Total Advisor Shares (234) (446) (11) (437) (627) (1,305) --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Select Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (12,946) $ (75,185) $ 1,410 $ (95,876) $(228,195) $(119,709) ========= ========= ========= ========= ========= ========= _____________________ (a) Formerly the Large Cap Core Fund. (b) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS. 152 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS (a) EQUITY INDEX ----------------------- ----------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(b) 2007 2006 --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 32,728 $ 16,964 $ 71,765 $ 82,440 Dividends reinvested 766 2,159 2,967 2,686 Shares redeemed (43,436) (28,562) (90,566) (74,461) --------- --------- --------- --------- Total Institutional Shares (9,942) (9,439) (15,834) 10,665 --------- --------- --------- --------- Class A Shares Shares issued 1,640 1,337 13,919 9,892 Dividends reinvested 186 435 1,019 1,048 Shares redeemed (6,337) (5,713) (23,375) (18,395) --------- --------- --------- --------- Total Class A Shares (4,511) (3,941) (8,437) (7,455) --------- --------- --------- --------- Class B Shares Shares issued 147 144 250 491 Dividends reinvested 3 10 29 29 Shares redeemed (175) (244) (1,107) (840) --------- --------- --------- --------- Total Class B Shares (25) (90) (828) (320) --------- --------- --------- --------- Class C Shares Shares issued 42 72 464 506 Dividends reinvested -- ^ 2 14 14 Shares redeemed (40) (161) (536) (903) --------- --------- --------- --------- Total Class C Shares 2 (87) (58) (383) --------- --------- --------- --------- Advisor Shares Shares issued 478 3 980 932 Dividends reinvested -- ^ -- ^ 23 17 Shares redeemed (16) -- (799) (1,100) --------- --------- --------- --------- Total Advisor Shares 462 3 204 (151) --------- --------- --------- --------- Select Shares Shares issued NA NA 2,183 4,805 Dividends reinvested NA NA 259 237 Shares redeemed NA NA (4,586) (6,577) --------- --------- --------- --------- Total Select Shares NA NA (2,144) (1,535) --------- --------- --------- --------- Preferred Shares Shares issued NA NA 12,353 13,177 Dividends reinvested NA NA 1,087 1,151 Shares redeemed NA NA (17,957) (30,070) --------- --------- --------- --------- Total Preferred Shares NA NA (4,517) (15,742) --------- --------- --------- --------- Trust Shares Shares issued NA NA 751 2,558 Dividends reinvested NA NA 225 206 Shares redeemed NA NA (9,221) (13,670) --------- --------- --------- --------- Total Trust Shares NA NA (8,245) (10,906) --------- --------- --------- --------- Change from capital transactions $ (14,014) $ (13,554) $ (39,859) $ (25,827) ========= ========= ========= ========= BALANCED MICRO CAP VALUE ----------------------- ----------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 3,027 $ 4,152 $ 6,468 $ 20,739 Dividends reinvested 761 818 14,685 25,967 Shares redeemed (19,169) (27,677) (35,812) (48,158) --------- --------- --------- --------- Total Institutional Shares (15,381) (22,707) (14,659) (1,452) --------- --------- --------- --------- Class A Shares Shares issued 2,143 1,014 2,105 6,881 Dividends reinvested 753 783 3,542 4,993 Shares redeemed (16,423) (22,227) (10,249) (18,229) --------- --------- --------- --------- Total Class A Shares (13,527) (20,430) (4,602) (6,355) --------- --------- --------- --------- Class B Shares Shares issued 82 164 108 554 Dividends reinvested 113 82 1,323 2,023 Shares redeemed (2,441) (3,380) (1,652) (1,862) --------- --------- --------- --------- Total Class B Shares (2,246) (3,134) (221) 715 --------- --------- --------- --------- Class C Shares Shares issued 244 113 977 1,741 Dividends reinvested 20 28 597 1,557 Shares redeemed (862) (2,452) (3,652) (2,665) --------- --------- --------- --------- Total Class C Shares (598) (2,311) (2,078) 633 --------- --------- --------- --------- Advisor Shares Shares issued 11 15 608 1,834 Dividends reinvested 3 2 3,508 5,916 Shares redeemed (26) (75) (10,308) (20,249) --------- --------- --------- --------- Total Advisor Shares (12) (58) (6,192) (12,499) --------- --------- --------- --------- Select Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- --------- --------- Total Select Shares NA NA NA NA --------- --------- --------- --------- Preferred Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- --------- --------- Total Preferred Shares NA NA NA NA --------- --------- --------- --------- Trust Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA --------- --------- --------- --------- Total Trust Shares NA NA NA NA --------- --------- --------- --------- Change from capital transactions $ (31,764) $ (48,640) $ (27,752) $ (18,958) ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 153 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- SMALL CAP GROWTH MID CAP GROWTH QUALITY GROWTH --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- --------- --------- SHARE TRANSACTIONS: Institutional Shares Shares issued 1,292 912 2,507 2,731 1,832 7,148 Dividends reinvested 2,340 1,403 4,478 251 574 -- Shares redeemed (4,235) (7,052) (6,253) (8,277) (12,832) (11,117) --------- --------- --------- --------- --------- --------- Total Institutional Shares (603) (4,737) 732 (5,295) (10,426) (3,969) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 168 199 83 140 92 235 Dividends reinvested 324 182 446 30 110 -- Shares redeemed (546) (575) (745) (712) (2,562) (3,090) --------- --------- --------- --------- --------- --------- Total Class A Shares (54) (194) (216) (542) (2,360) (2,855) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 3 4 6 41 8 32 Dividends reinvested 27 15 92 5 13 -- Shares redeemed (29) (34) (119) (80) (264) (279) --------- --------- --------- --------- --------- --------- Total Class B Shares 1 (15) (21) (34) (243) (247) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 3 4 6 15 5 13 Dividends reinvested 8 5 18 1 3 -- Shares redeemed (5) (22) (40) (51) (96) (136) --------- --------- --------- --------- --------- --------- Total Class C Shares 6 (13) (16) (35) (88) (123) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 1 2 4 14 25 38 Dividends reinvested 8 7 10 1 2 -- Shares redeemed (25) (39) (14) (42) (63) (119) --------- --------- --------- --------- --------- --------- Total Advisor Shares (16) (30) -- ^ (27) (36) (81) --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Select Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Change from share transactions (666) (4,989) 479 (5,933) (13,153) (7,275) ========= ========= ========= ========= ========= ========= __________________ (a) Formerly the Large Cap Core Fund. (b) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred shares. SEE NOTES TO FINANCIAL STATEMENTS. 154 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS (a) EQUITY INDEX BALANCED MICRO CAP VALUE --------------------- --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(b) 2007 2006 2007 2006 2007 2006 --------- --------- --------- --------- --------- --------- --------- --------- SHARE TRANSACTIONS: Institutional Shares Shares issued 2,107 1,143 2,657 3,433 232 327 859 2,122 Dividends reinvested 46 146 110 112 59 65 2,154 3,250 Shares redeemed (2,509) (1,923) (3,367) (3,119) (1,456) (2,178) (4,744) (5,287) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares (356) (634) (600) 426 (1,165) (1,786) (1,731) 85 --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 99 91 511 418 164 80 297 808 Dividends reinvested 11 30 38 44 58 62 541 644 Shares redeemed (374) (389) (862) (768) (1,256) (1,767) (1,410) (1,881) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares (264) (268) (313) (306) (1,034) (1,625) (572) (429) --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 9 9 10 21 6 12 15 62 Dividends reinvested -- 1 1 1 9 7 212 269 Shares redeemed (10) (16) (42) (35) (189) (270) (237) (224) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (1) (6) (31) (13) (174) (251) (10) 107 --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 2 6 17 21 19 10 144 208 Dividends reinvested -- -- ^ 1 1 1 2 96 207 Shares redeemed (2) (11) (20) (38) (67) (196) (481) (310) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares -- (5) (2) (16) (47) (184) (241) 105 --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 28 -- ^ 35 38 1 1 84 210 Dividends reinvested -- -- ^ 1 1 -- ^ -- ^ 544 770 Shares redeemed (1) -- (29) (47) (2) (6) (1,457) (2,102) --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares 27 -- ^ 7 (8) (1) (5) (829) (1,122) --------- --------- --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA 82 200 NA NA NA NA Dividends reinvested NA NA 9 10 NA NA NA NA Shares redeemed NA NA (169) (282) NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Total Select Shares NA NA (78) (72) NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA 454 550 NA NA NA NA Dividends reinvested NA NA 40 48 NA NA NA NA Shares redeemed NA NA (664) (1,250) NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA (170) (652) NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA 28 107 NA NA NA NA Dividends reinvested NA NA 8 9 NA NA NA NA Shares redeemed NA NA (344) (573) NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA (308) (457) NA NA NA NA --------- --------- --------- --------- --------- --------- --------- --------- Change from share transactions (594) (913) (1,495) (1,098) (2,421) (3,851) (3,383) (1,254) ========= ========= ========= ========= ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 155 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- DISCIPLINED LARGE CAP SMALL CAP VALUE MULTI CAP VALUE VALUE --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 2007 2006(a) --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 18,879 $ 24,440 $ 40,510 $ 31,770 $ 152,582 $ 100,135 Dividends reinvested 15,351 14,091 38,232 19,731 84,554 54,710 Shares redeemed (37,712) (68,554) (85,610) (92,103) (156,187) (135,385) --------- --------- --------- --------- --------- --------- Total Institutional Shares (3,482) (30,023) (6,868) (40,602) 80,949 19,460 --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 288 651 12,552 5,613 14,524 3,805 Dividends reinvested 259 234 5,675 3,111 3,225 2,217 Shares redeemed (728) (946) (12,341) (9,066) (10,380) (7,307) --------- --------- --------- --------- --------- --------- Total Class A Shares (181) (61) 5,886 (342) 7,369 (1,285) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 67 271 1,731 1,808 685 718 Dividends reinvested 113 98 3,517 1,798 697 443 Shares redeemed (263) (176) (2,947) (3,853) (1,212) (1,008) --------- --------- --------- --------- --------- --------- Total Class B Shares (83) 193 2,301 (247) 170 153 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 76 139 4,728 1,523 735 390 Dividends reinvested 86 93 564 312 246 175 Shares redeemed (269) (233) (1,472) (1,857) (631) (603) --------- --------- --------- --------- --------- --------- Total Class C Shares (107) (1) 3,820 (22) 350 (38) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 43 289 2,036 2,398 206 177 Dividends reinvested 120 124 5,368 2,973 35 11 Shares redeemed (442) (1,067) (7,847) (14,687) (9) (37) --------- --------- --------- --------- --------- --------- Total Advisor Shares (279) (654) (443) (9,316) 232 151 --------- --------- --------- --------- --------- --------- Change from capital transactions $ (4,132) $ (30,546) $ 4,696 $ (50,529) $ 89,070 $ 18,441 ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 895 1,137 1,565 1,243 10,139 6,842 Dividends reinvested 753 688 1,573 813 6,073 3,972 Shares redeemed (1,763) (3,193) (3,222) (3,624) (10,590) (9,395) --------- --------- --------- --------- --------- --------- Total Institutional Shares (115) (1,368) (84) (1,568) 5,622 1,419 --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 13 29 485 222 986 262 Dividends reinvested 13 12 237 129 232 161 Shares redeemed (34) (44) (479) (357) (711) (507) --------- --------- --------- --------- --------- --------- Total Class A Shares (8) (3) 243 (6) 507 (84) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 3 13 69 74 46 49 Dividends reinvested 6 5 153 77 50 32 Shares redeemed (13) (8) (118) (157) (81) (69) --------- --------- --------- --------- --------- --------- Total Class B Shares (4) 10 104 (6) 15 12 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 4 6 189 62 51 27 Dividends reinvested 4 5 24 13 18 13 Shares redeemed (13) (11) (59) (75) (43) (42) --------- --------- --------- --------- --------- --------- Total Class C Shares (5) -- ^ 154 -- ^ 26 (2) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 2 14 79 95 14 12 Dividends reinvested 6 6 225 124 3 1 Shares redeemed (21) (50) (311) (581) (1) (3) --------- --------- --------- --------- --------- --------- Total Advisor Shares (13) (30) (7) (362) 16 10 --------- --------- --------- --------- --------- --------- Change from share transactions (145) (1,391) 410 (1,942) 6,186 1,355 ========= ========= ========= ========= ========= ========= ________________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred shares. SEE NOTES TO FINANCIAL STATEMENTS. 156 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- LIFEMODEL LIFEMODEL MODERATELY LIFEMODEL LIFEMODEL MODERATELY AGGRESSIVE(SM) AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE(SM) -------------------- --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006(a) 2007 2006(a) 2007 2006(a) --------- --------- --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 34,928 $ 53,193 $ 40,366 $ 51,733 $ 59,250 $ 126,383 $ 12,948 $ 13,916 Dividends reinvested 3,801 2,838 5,983 4,701 18,093 14,667 2,372 1,999 Shares redeemed (35,137) (25,510) (49,433) (31,436) (104,703) (108,380) (18,924) (11,056) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares 3,592 30,521 (3,084) 24,998 (27,360) 32,670 (3,604) 4,859 --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 10,154 13,302 16,757 28,416 11,504 21,112 3,505 8,301 Dividends reinvested 1,601 1,481 4,649 4,428 4,119 4,236 1,891 1,872 Shares redeemed (11,631) (12,216) (35,182) (29,928) (30,724) (30,023) (9,112) (13,338) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares 124 2,567 (13,776) 2,916 (15,101) (4,675) (3,716) (3,165) --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 1,343 2,974 4,627 9,238 2,795 6,180 730 1,693 Dividends reinvested 466 413 1,634 1,457 1,506 1,437 840 874 Shares redeemed (2,440) (2,820) (8,599) (7,487) (7,684) (8,128) (4,255) (4,403) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (631) 567 (2,338) 3,208 (3,383) (511) (2,685) (1,836) --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 679 1,133 1,687 1,836 833 1,414 594 490 Dividends reinvested 69 54 222 232 210 214 121 130 Shares redeemed (734) (709) (1,985) (2,972) (1,837) (2,994) (1,179) (1,524) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares 14 478 (76) (904) (794) (1,366) (464) (904) --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 354 796 681 1,399 176 430 1 65 Dividends reinvested 21 1 51 13 18 5 3 2 Shares redeemed (105) (3) (302) (24) (217) (9) (1) (4) --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares 270 794 430 1,388 (23) 426 3 63 --------- --------- --------- --------- --------- --------- --------- --------- Change from capital transactions $ 3,369 $ 34,927 $ (18,844) $ 31,606 $ (46,661) $ 26,544 $ (10,466) $ (983) ========= ========= ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 2,180 3,631 2,688 3,669 4,526 10,098 1,092 1,213 Dividends reinvested 243 197 401 339 1,387 1,183 202 176 Shares redeemed (2,169) (1,756) (3,267) (2,248) (7,959) (8,678) (1,590) (963) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares 254 2,072 (178) 1,760 (2,046) 2,603 (296) 426 --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 634 910 1,115 2,023 878 1,684 296 723 Dividends reinvested 102 103 313 320 316 342 161 165 Shares redeemed (727) (839) (2,347) (2,141) (2,342) (2,400) (770) (1,164) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares 9 174 (919) 202 (1,148) (374) (313) (276) --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 87 208 313 660 215 496 62 148 Dividends reinvested 31 29 111 106 116 117 72 77 Shares redeemed (155) (199) (573) (537) (588) (655) (361) (385) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (37) 38 (149) 229 (257) (42) (227) (160) --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 44 79 115 132 64 115 51 43 Dividends reinvested 4 4 15 17 16 17 11 11 Shares redeemed (48) (50) (133) (212) (142) (241) (100) (133) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares -- ^ 33 (3) (63) (62) (109) (38) (79) --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 22 54 46 99 14 35 -- ^ 5 Dividends reinvested 1 -- ^ 4 1 1 -- ^ 1 -- ^ Shares redeemed (6) -- ^ (20) (2) (17) (1) -- ^ -- ^ --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares 17 54 30 98 (2) 34 1 5 --------- --------- --------- --------- --------- --------- --------- --------- Change from share transactions 243 2,371 (1,219) 2,226 (3,515) 2,112 (873) (84) ========= ========= ========= ========= ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 157 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM) STRATEGIC INCOME DIVIDEND GROWTH --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006 2007 2006(a) --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 8,972 $ 8,371 $ 25,799 $ 30,183 $ 9,365 $ 13,614 Dividends reinvested 1,412 1,072 1,929 930 126 103 Shares redeemed (10,839) (6,849) (17,153) (19,695) (8,979) (4,705) --------- --------- --------- --------- --------- --------- Total Institutional Shares (455) 2,594 10,575 11,418 512 9,012 --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 1,625 2,292 1,442 2,449 248 301 Dividends reinvested 821 759 189 180 73 51 Shares redeemed (3,922) (6,582) (1,095) (2,492) (1,622) (2,954) --------- --------- --------- --------- --------- --------- Total Class A Shares (1,476) (3,531) 536 137 (1,301) (2,602) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 595 1,035 404 600 59 114 Dividends reinvested 422 378 51 43 3 2 Shares redeemed (2,251) (3,682) (500) (919) (111) (67) --------- --------- --------- --------- --------- --------- Total Class B Shares (1,234) (2,269) (45) (276) (49) 49 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 401 681 516 1,493 19 50 Dividends reinvested 137 121 712 792 3 3 Shares redeemed (1,359) (2,211) (5,511) (10,775) (104) (196) --------- --------- --------- --------- --------- --------- Total Class C Shares (821) (1,409) (4,283) (8,490) (82) (143) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 2 48 1,816 1,974 -- 13 Dividends reinvested -- ^ 1 905 1,076 -- ^ -- ^ Shares redeemed (2) (4) (6,402) (13,943) (3) ^ -- --------- --------- --------- --------- --------- --------- Total Advisor Shares -- 45 (3,681) (10,893) (3) 13 --------- --------- --------- --------- --------- --------- Change from capital transactions $ (3,986) $ (4,570) $ 3,102 $ (8,104) $ (923) $ 6,329 ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 816 773 2,238 2,675 404 630 Dividends reinvested 129 100 167 82 5 5 Shares redeemed (986) (633) (1,489) (1,745) (367) (212) --------- --------- --------- --------- --------- --------- Total Institutional Shares (41) 240 916 1,012 42 423 --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 148 212 124 216 10 15 Dividends reinvested 75 71 17 16 3 2 Shares redeemed (357) (610) (95) (222) (67) (138) --------- --------- --------- --------- --------- --------- Total Class A Shares (134) (327) 46 10 (54) (121) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 54 97 35 52 3 5 Dividends reinvested 38 35 5 4 -- ^ -- ^ Shares redeemed (205) (342) (44) (81) (5) (3) --------- --------- --------- --------- --------- --------- Total Class B Shares (113) (210) (4) (25) (2) 2 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 37 64 45 133 1 4 Dividends reinvested 12 11 62 71 -- ^ -- ^ Shares redeemed (125) (205) (483) (963) (5) (10) --------- --------- --------- --------- --------- --------- Total Class C Shares (76) (130) (376) (759) (4) (6) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued -- ^ 4 158 174 -- 1 Dividends reinvested -- ^ -- ^ 79 95 -- ^ -- ^ Shares redeemed -- ^ -- ^ (557) (1,240) -- -- --------- --------- --------- --------- --------- --------- Total Advisor Shares -- ^ 4 (320) (971) -- 1 --------- --------- --------- --------- --------- --------- Change from share transactions (364) (423) 262 (733) (18) 299 ========= ========= ========= ========= ========= ========= ________________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. (b) Reflects operations for the period from November 29, 2005 (date of commencement of operations) to July 31, 2006. ^ Represents fewer than five hundred dollars/shares. SEE NOTES TO FINANCIAL STATEMENTS. 158 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- TECHNOLOGY INTERNATIONAL EQUITY HIGH YIELD BOND BOND --------------------- --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR PERIOD YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 2007 2006(c) 2007 2006 --------- --------- --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 9,376 $ 22,631 $ 88,896 $ 163,862 $ 23,931 $ 71,545 $ 70,897 $ 44,572 Dividends reinvested -- -- 9,336 11,562 909 70 3,480 4,406 Shares redeemed (32,971) (12,574) (151,154) (88,658) (21,121) (3,810) (96,717) (78,354) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares (23,595) 10,057 (52,922) 86,766 3,719 67,805 (22,340) (29,376) --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 371 651 5,001 10,028 43 272 564 1,047 Dividends reinvested -- -- 711 805 10 5 415 613 Shares redeemed (1,904) (2,441) (17,514) (7,793) (102) (43) (4,448) (5,324) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares (1,533) (1,790) (11,802) 3,040 (49) 234 (3,469) (3,664) --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 12 83 461 682 64 103 21 192 Dividends reinvested -- -- 38 38 2 -- ^ 76 111 Shares redeemed (334) (314) (323) (192) -- ^ (5) (605) (1,432) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (322) (231) 176 528 66 98 (508) (1,129) --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued -- 611 124 441 76 56 16 9 Dividends reinvested -- -- 21 33 2 1 9 18 Shares redeemed (748) (316) (588) (461) -- ^ -- (116) (341) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares (748) 295 (443) 13 78 57 (91) (314) --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 2,931 2,678 354 1,477 5 10 40 48 Dividends reinvested -- -- 235 315 -- ^ -- 8 14 Shares redeemed (1,918) (694) (2,338) (6,352) -- ^ -- (77) (406) --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares 1,013 1,984 (1,749) (4,560) 5 10 (29) (344) --------- --------- --------- --------- --------- --------- --------- --------- Change from capital transactions $ (25,185) $ 10,315 $ (66,740) $ 85,787 $ 3,819 $ 68,204 $ (26,437) $ (34,827) ========= ========= ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 845 1,993 6,856 14,066 2,403 7,153 7,257 4,530 Dividends reinvested -- -- 19 994 91 7 357 448 Shares redeemed (2,853) (1,182) (10,577) (7,353) (2,148) (381) (9,873) (7,939) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares (2,008) 811 (3,702) 7,707 346 6,779 (2,259) (2,961) --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 34 60 351 823 4 27 58 107 Dividends reinvested -- -- 52 69 1 -- ^ 42 62 Shares redeemed (169) (232) (1,176) (631) (10) (4) (454) (542) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares (135) (172) (773) 261 (5) 23 (354) (373) --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 1 9 33 56 6 10 2 19 Dividends reinvested -- -- 3 3 -- ^ -- ^ 8 11 Shares redeemed (31) (32) (23) (16) -- -- ^ (62) (144) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (30) (23) 13 43 6 10 (52) (114) --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued -- 53 9 37 7 6 1 2 Dividends reinvested -- -- 1 3 -- ^ -- ^ 1 2 Shares redeemed (68) (32) (44) (40) -- ^ -- (12) (35) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares (68) 21 (34) -- ^ 7 6 (10) (31) --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 280 240 25 121 1 1 4 5 Dividends reinvested -- -- 17 27 -- ^ -- 1 1 Shares redeemed (171) (69) (165) (541) -- -- (8) (41) --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares 109 171 (123) (393) 1 1 (3) (35) --------- --------- --------- --------- --------- --------- --------- --------- Change from share transactions (2,132) 808 (4,619) 7,618 355 6,819 (2,678) (3,514) ========= ========= ========= ========= ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 159 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INTERMEDIATE BOND SHORT TERM BOND U.S. GOVERNMENT BOND --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006(a) 2007 2006(a) 2007 2006(a) --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 105,227 $ 56,824 $ 76,453 $ 33,522 $ 6,067 $ 4,977 Dividends reinvested 4,033 3,132 2,208 1,840 406 552 Shares redeemed (67,042) (148,472) (71,370) (107,348) (10,721) (9,175) --------- --------- --------- --------- --------- --------- Total Institutional Shares 42,218 (88,516) 7,291 (71,986) (4,248) (3,646) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 983 1,573 1,052 1,127 349 755 Dividends reinvested 729 915 377 469 718 893 Shares redeemed (7,522) (8,407) (4,172) (6,169) (20,887) (4,651) --------- --------- --------- --------- --------- --------- Total Class A Shares (5,810) (5,919) (2,743) (4,573) (19,820) (3,003) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued -- ^ 4 NA NA NA NA Dividends reinvested 86 105 NA NA NA NA Shares redeemed (425) (1,112) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Class B Shares (339) (1,003) NA NA NA NA --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 28 151 13 27 19 123 Dividends reinvested 25 31 5 6 26 48 Shares redeemed (339) (509) (63) (187) (602) (1,202) ` --------- --------- --------- --------- --------- --------- Total Class C Shares (286) (327) (45) (154) (557) (1,031) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 91 13 -- ^ 3 -- ^ 3 Dividends reinvested 2 -- ^ -- ^ -- ^ -- ^ -- ^ Shares redeemed (2) -- (3) -- (3) -- --------- --------- --------- --------- --------- --------- Total Advisor Shares 91 13 (3) 3 (3) 3 --------- --------- --------- --------- --------- --------- Change from capital transactions $ 35,874 $ (95,752) $ 4,500 $ (76,710) $ (24,628) $ (7,677) ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 11,008 5,899 8,207 3,610 606 500 Dividends reinvested 422 326 238 198 41 55 Shares redeemed (6,973) (15,417) (7,679) (11,533) (1,067) (921) --------- --------- --------- --------- --------- --------- Total Institutional Shares 4,457 (9,192) 766 (7,725) (420) (366) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 102 163 113 121 35 76 Dividends reinvested 75 95 40 51 71 90 Shares redeemed (780) (873) (449) (663) (2,092) (469) --------- --------- --------- --------- --------- --------- Total Class A Shares (603) (615) (296) (491) (1,986) (303) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued -- ^ -- ^ NA NA NA NA Dividends reinvested 9 11 NA NA NA NA Shares redeemed (44) (116) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Class B Shares (35) (105) NA NA NA NA --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 3 16 1 2 2 13 Dividends reinvested 3 3 1 1 3 5 Shares redeemed (36) (53) (7) (20) (61) (122) --------- --------- --------- --------- --------- --------- Total Class C Shares (30) (34) ^ (5) (17) (56) (104) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 10 1 -- -- ^ -- -- ^ Dividends reinvested -- ^ -- ^ -- ^ -- ^ -- ^ -- ^ Shares redeemed -- ^ -- -- ^ -- -- ^ -- --------- --------- --------- --------- --------- --------- Total Advisor Shares 10 1 -- ^~ -- ^ -- ^~ -- ^ --------- --------- --------- --------- --------- --------- Change from share transactions 3,799 (9,945) 465 (8,233) (2,462) (773) ========= ========= ========= ========= ========= ========= _________________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars/shares. ~ Advisor share were liquidated May 11, 2007. See Note 1. SEE NOTES TO FINANCIAL STATEMENTS. 160 FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INTERMEDIATE MICHIGAN MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND OHIO MUNICIPAL BOND BOND --------------------- --------------------- --------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006(a) 2007 2006(a) 2007 2006(a) --------- --------- --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 14,848 $ 5,557 $ 10,952 $ 6,499 $ 7,512 $ 4,240 $ 4,477 $ 3,535 Dividends reinvested 543 2,074 573 2,456 137 303 24 77 Shares redeemed (10,305) (14,847) (26,522) (43,318) (11,391) (21,060) (11,352) (26,140) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares 5,086 (7,216) (14,997) (34,363) (3,742) (16,517) (6,851) (22,528) --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 8 89 5 22 429 360 3 777 Dividends reinvested 42 82 64 101 178 248 94 98 Shares redeemed (185) (323) (583) (533) (8,148) (4,859) (319) (782) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares (135) (152) (514) (410) (7,541) (4,251) (222) 93 --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 2 47 10 -- 2 24 39 -- Dividends reinvested 27 80 4 29 61 89 7 8 Shares redeemed (172) (496) (100) (545) (800) (872) (85) (564) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (143) (369) (86) (516) (737) (759) (39) (556) --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 23 25 21 1 -- -- ^ -- ^ 5 Dividends reinvested 1 6 2 5 20 39 3 5 Shares redeemed (69) (111) (10) (70) (502) (2,586) (54) (257) ` --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares (45) (80) 13 (64) (482) (2,547) (51) (247) --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 2 -- -- 3 -- 3 -- ^ 3 Dividends reinvested 2 8 -- ^ -- ^ -- ^ -- ^ -- ^ -- ^ Shares redeemed (4) (189) (2) -- (3) -- (3) -- --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares -- (181) (2) 3 (3) 3 (3) 3 --------- --------- --------- --------- --------- --------- --------- --------- Change from capital transactions $ 4,763 $ (7,998) (15,586) $ (35,350) $ (12,505) $ (24,071) $ (7,166) $ (23,235) ========= ========= ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 1,578 578 1,094 644 747 421 451 355 Dividends reinvested 57 218 56 243 13 30 2 8 Shares redeemed (1,089) (1,541) (2,634) (4,282) (1,131) (2,089) (1,142) (2,626) --------- --------- --------- --------- --------- --------- --------- --------- Total Institutional Shares 546 (745) (1,484) (3,395) (371) (1,638) (689) (2,263) --------- --------- --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 1 9 1 2 42 35 -- ^ 78 Dividends reinvested 4 9 6 10 18 25 10 10 Shares redeemed (19) (34) (58) (53) (814) (478) (32) (79) --------- --------- --------- --------- --------- --------- --------- --------- Total Class A Shares (14) (16) (51) (41) (754) (418) (22) 9 --------- --------- --------- --------- --------- --------- --------- --------- Class B Shares Shares issued -- 5 -- -- -- 2 4 -- Dividends reinvested 3 8 1 3 6 9 1 1 Shares redeemed (18) (52) (10) (54) (81) (88) (9) (57) --------- --------- --------- --------- --------- --------- --------- --------- Total Class B Shares (15) (39) (9) (51) (75) (77) (4) (56) --------- --------- --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 3 2 2 -- ^ -- -- ^ -- ^ -- ^ Dividends reinvested -- ^ 1 -- ^ -- ^ 2 3 -- ^ -- ^ Shares redeemed (7) (12) (1) (6) (50) (256) (5) (25) --------- --------- --------- --------- --------- --------- --------- --------- Total Class C Shares (4) (9) 1 (6) (48) (253) (5) (25) --------- --------- --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued -- ^ -- -- -- ^ -- -- ^ -- -- ^ Dividends reinvested -- ^ -- ^ -- ^ -- ^ -- ^ -- ^ -- ^ -- ^ Shares redeemed -- ^ (20) -- ^ -- -- ^ -- -- ^ -- --------- --------- --------- --------- --------- --------- --------- --------- Total Advisor Shares -- ^ (20) -- ^~ -- ^ -- ~ -- ^ -- ~ -- ^ --------- --------- --------- --------- --------- --------- --------- --------- Change from share transactions 513 (829) (1,543) (3,493) (1,248) (2,386) (720) (2,335) ========= ========= ========= ========= ========= ========= ========= ========= SEE NOTES TO FINANCIAL STATEMENTS. 161 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT NVESTMENTS FROM INVESTMENT REALIZED OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 $ 13.70 (0.03) 2.23 2.20 -- -- Year ended 7/31/04 $ 15.90 (0.12)~ 1.43 1.31 -- (1.73) Year ended 7/31/05 $ 15.48 (0.10)~ 3.07 2.97 -- (2.87) Year ended 7/31/06 $ 15.58 (0.11)~ 0.50 0.39 -- (1.87) Year ended 7/31/07 $ 14.10 (0.08)~ 2.64 2.56 -- (3.24) - ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS A SHARES 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) Year ended 7/31/07 $ 13.65 (0.11)~ 2.54 2.43 -- (3.24) - ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS B SHARES 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) Year ended 7/31/07 $ 13.21 (0.20)~ 2.44 2.24 -- (3.24) - ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS C SHARES 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) Year ended 7/31/07 $ 13.23 (0.20)~ 2.44 2.24 -- (3.24) - ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH ADVISOR SHARES 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) Year ended 7/31/07 $ 13.65 (0.14)~ 2.54 2.40 -- (3.24) - ------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- SMALL CAP GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 -- $15.90 16.06% Year ended 7/31/04 (1.73) $15.48 7.31% Year ended 7/31/05 (2.87) $15.58 20.81% Year ended 7/31/06 (1.87) $14.10 2.71% Year ended 7/31/07 (3.24) $13.42 20.45% - ----------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS A SHARES 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% Year ended 7/31/07 (3.24) $12.84 20.11% - ----------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS B SHARES 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% Year ended 7/31/07 (3.24) $12.21 19.31% - ----------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS C SHARES 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% Year ended 7/31/07 (3.24) $12.23 19.18% - ----------------------------------------------------------------------------------- SMALL CAP GROWTH ADVISOR SHARES 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% Year ended 7/31/07 (3.24) $12.81 19.85% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE (LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 $ 391,934 0.98% 0.93% (0.16%) 63% Year ended 7/31/04 $ 223,439 1.00% 1.00% (0.72%) 95% Year ended 7/31/05 $ 213,892 1.01% 1.01% (0.68%) 65% Year ended 7/31/06 $ 126,809 1.03% 1.02% (0.75%) 67% Year ended 7/31/07 $ 112,591 1.06% 1.01% (0.59%) 90% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS A SHARES Year ended 7/31/03 $ 16,471 1.23% 1.19% (0.42%) 63% Year ended 7/31/04 $ 25,921 1.25% 1.25% (0.99%) 95% Year ended 7/31/05 $ 22,714 1.26% 1.26% (0.93%) 65% Year ended 7/31/06 $ 17,783 1.28% 1.27% (0.99%) 67% Year ended 7/31/07 $ 16,036 1.30% 1.26% (0.84%) 90% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS B SHARES Year ended 7/31/03 $ 1,407 1.98%** 1.94%** (1.17%)** 63% Year ended 7/31/04 $ 1,784 2.00% 2.00% (1.74%) 95% Year ended 7/31/05 $ 1,805 2.01% 2.01% (1.68%) 65% Year ended 7/31/06 $ 1,414 2.03% 2.02% (1.74%) 67% Year ended 7/31/07 $ 1,318 2.06% 2.01% (1.59%) 90% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH CLASS C SHARES Year ended 7/31/03 $ 436 1.98%** 1.93%** (1.16%)** 63% Year ended 7/31/04 $ 810 2.00% 2.00% (1.74%) 95% Year ended 7/31/05 $ 618 2.01% 2.01% (1.68%) 65% Year ended 7/31/06 $ 384 2.03% 2.02% (1.75%) 67% Year ended 7/31/07 $ 426 2.05% 2.01% (1.60%) 90% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH ADVISOR SHARES Year ended 7/31/03 $ 469 1.48%** 1.44%** (0.66%)** 63% Year ended 7/31/04 $ 1,173 1.51% 1.51% (1.26%) 95% Year ended 7/31/05 $ 1,195 1.51% 1.51% (1.18%) 65% Year ended 7/31/06 $ 671 1.53% 1.52% (1.25%) 67% Year ended 7/31/07 $ 422 1.56% 1.51% (1.08%) 90% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 162-163 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.24 (0.07)~ 1.85 1.78 -- -- Year ended 7/31/04 $ 12.02 (0.09) 1.03 0.94 -- -- Year ended 7/31/05 $ 12.96 -- ^ 3.07 3.07 -- -- Year ended 7/31/06 $ 16.03 (0.04)~ 0.77 0.73 (0.02) (0.19) Year ended 7/31/07 $ 16.55 (0.07)~@ 2.72 2.65 -- (3.50) - -------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH CLASS A SHARES 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) Year ended 7/31/07 $ 16.17 (0.11)~@ 2.64 2.53 -- (3.50) - -------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH CLASS B SHARES 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) Year ended 7/31/07 $ 15.50 (0.21)~@ 2.52 2.31 -- (3.50) - -------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH CLASS C SHARES 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) Year ended 7/31/07 $ 14.94 (0.20)~@ 2.41 2.21 -- (3.50) - -------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH ADVISOR SHARES 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) Year ended 7/31/07 $ 16.00 (0.14)~@ 2.60 2.46 -- (3.50) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- MID CAP GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 -- $12.02 17.38% Year ended 7/31/04 -- $12.96 7.82% Year ended 7/31/05 -- $16.03 23.69% Year ended 7/31/06 (0.21) $16.55 4.56% Year ended 7/31/07 (3.50) $15.70 17.32%@ - ----------------------------------------------------------------------------------- MID CAP GROWTH CLASS A SHARES 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% Year ended 7/31/07 (3.50) $15.20 16.93%@ - ----------------------------------------------------------------------------------- MID CAP GROWTH CLASS B SHARES 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% Year ended 7/31/07 (3.50) $14.31 16.14%@ - ----------------------------------------------------------------------------------- MID CAP GROWTH CLASS C SHARES 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% Year ended 7/31/07 (3.50) $13.65 16.07%@ - ----------------------------------------------------------------------------------- MID CAP GROWTH ADVISOR SHARES 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% Year ended 7/31/07 (3.50) $14.96 16.65%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE (LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 $ 335,285 1.10% 1.10% (0.65%) 25% Year ended 7/31/04 $ 335,815 1.09% 1.09% (0.68%) 83% Year ended 7/31/05 $ 392,929 1.09% 1.09% (0.03%) 54% Year ended 7/31/06 $ 318,133 1.08% 1.08% (0.24%) 69% Year ended 7/31/07 $ 313,124 1.09% 1.09% (0.48%) 55% - ---------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH CLASS A SHARES Year ended 7/31/03 $ 35,504 1.35% 1.35% (0.89%) 25% Year ended 7/31/04 $ 49,586 1.34% 1.34% (0.93%) 83% Year ended 7/31/05 $ 41,921 1.34% 1.34% (0.29%) 54% Year ended 7/31/06 $ 34,437 1.33% 1.33% (0.49%) 69% Year ended 7/31/07 $ 29,103 1.35% 1.34% (0.73%) 55% - ---------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH CLASS B SHARES Year ended 7/31/03 $ 5,846 2.10% 2.10% (1.64%) 25% Year ended 7/31/04 $ 6,730 2.09% 2.09% (1.68%) 83% Year ended 7/31/05 $ 6,874 2.09% 2.09% (1.03%) 54% Year ended 7/31/06 $ 6,507 2.08% 2.08% (1.24%) 69% Year ended 7/31/07 $ 5,707 2.09% 2.09% (1.48%) 55% - ---------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH CLASS C SHARES Year ended 7/31/03 $ 1,525 2.10% 2.10% (1.64%) 25% Year ended 7/31/04 $ 1,700 2.09% 2.09% (1.68%) 83% Year ended 7/31/05 $ 1,600 2.09% 2.09% (1.03%) 54% Year ended 7/31/06 $ 1,122 2.08% 2.08% (1.22%) 69% Year ended 7/31/07 $ 802 2.09% 2.09% (1.47%) 55% - ---------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH ADVISOR SHARES Year ended 7/31/03 $ 240 1.60% 1.60% (1.14%) 25% Year ended 7/31/04 $ 962 1.59% 1.59% (1.17%) 83% Year ended 7/31/05 $ 1,218 1.59% 1.59% (0.52%) 54% Year ended 7/31/06 $ 813 1.58% 1.58% (0.72%) 69% Year ended 7/31/07 $ 767 1.59% 1.59% (0.98%) 55% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 164-165 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 $ 12.91 0.01 1.31 1.32 --^ -- Year ended 7/31/04 $ 14.23 (0.04) 0.42 0.38 -- -- Year ended 7/31/05 $ 14.61 0.03 1.74 1.77 (0.04) -- Year ended 7/31/06 $ 16.34 (0.03)~ (0.64) (0.67) -- -- Year ended 7/31/07 $ 15.67 0.11~@ 3.07 3.18 (0.08) (0.25) - -------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH CLASS A SHARES 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) -- -- Year ended 7/31/07 $ 15.36 0.06~@ 3.01 3.07 (0.06) (0.25) - -------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH CLASS B SHARES 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) -- -- Year ended 7/31/07 $ 14.74 (0.06)~@ 2.88 2.82 (0.01) (0.25) - -------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH CLASS C SHARES 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) -- -- Year ended 7/31/07 $ 14.36 (0.06)~@ 2.81 2.75 (0.01) (0.25) - -------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH ADVISOR SHARES 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) -- -- Year ended 7/31/07 $ 15.19 0.03~@ 2.96 2.99 (0.04) (0.25) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- QUALITY GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 --^ $14.23 10.23% Year ended 7/31/04 -- $14.61 2.67% Year ended 7/31/05 (0.04) $16.34 12.13% Year ended 7/31/06 -- $15.67 (4.10%) Year ended 7/31/07 (0.33) $18.52 20.51%@ - ----------------------------------------------------------------------------------- QUALITY GROWTH CLASS A SHARES 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%) Year ended 7/31/07 (0.31) $18.12 20.18%@ - ----------------------------------------------------------------------------------- QUALITY GROWTH CLASS B SHARES 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%) Year ended 7/31/07 (0.26) $17.30 19.29%@ - ----------------------------------------------------------------------------------- QUALITY GROWTH CLASS C SHARES 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%) Year ended 7/31/07 (0.26) $16.85 19.30%@ - ----------------------------------------------------------------------------------- QUALITY GROWTH ADVISOR SHARES 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%) Year ended 7/31/07 (0.29) $17.89 19.86%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH INSTITUTIONAL SHARES Year ended 7/31/03 $ 795,988 1.08% 1.08% 0.05% 19% Year ended 7/31/04 $ 882,256 1.07% 1.07% (0.24%) 35% Year ended 7/31/05 $ 707,766 1.08% 1.08% 0.16% 71% Year ended 7/31/06 $ 616,737 1.08% 1.08% (0.18%) 108% Year ended 7/31/07 $ 535,734 1.10% 1.08% 0.52% 98% - ---------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH CLASS A SHARES Year ended 7/31/03 $ 211,221 1.33% 1.33% (0.19%) 19% Year ended 7/31/04 $ 220,904 1.32% 1.32% (0.49%) 35% Year ended 7/31/05 $ 165,836 1.33% 1.33% (0.08%) 71% Year ended 7/31/06 $ 114,828 1.33% 1.33% (0.42%) 108% Year ended 7/31/07 $ 92,728 1.35% 1.33% 0.27% 98% - ---------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH CLASS B SHARES Year ended 7/31/03 $ 20,700 2.08% 2.08% (0.94%) 19% Year ended 7/31/04 $ 20,947 2.07% 2.07% (1.24%) 35% Year ended 7/31/05 $ 17,791 2.08% 2.08% (0.85%) 71% Year ended 7/31/06 $ 13,259 2.08% 2.08% (1.18%) 108% Year ended 7/31/07 $ 11,347 2.10% 2.08% (0.49%) 98% - ---------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH CLASS C SHARES Year ended 7/31/03 $ 8,380 2.08% 2.08% (0.94%) 19% Year ended 7/31/04 $ 7,536 2.07% 2.07% (1.24%) 35% Year ended 7/31/05 $ 5,238 2.08% 2.08% (0.83%) 71% Year ended 7/31/06 $ 3,199 2.08% 2.08% (1.17%) 108% Year ended 7/31/07 $ 2,275 2.10% 2.08% (0.45%) 98% - ---------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH ADVISOR SHARES Year ended 7/31/03 $ 1,205 1.58% 1.58% (0.48%) 19% Year ended 7/31/04 $ 3,127 1.57% 1.57% (0.75%) 35% Year ended 7/31/05 $ 3,257 1.58% 1.58% (0.38%) 71% Year ended 7/31/06 $ 1,877 1.58% 1.58% (0.67%) 108% Year ended 7/31/07 $ 1,574 1.60% 1.58% 0.07% 98% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 166-167 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 NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS INSTITUTIONAL SHARES + Year ended 7/31/03 $ 11.20 0.12 0.63 0.75 (0.11) -- Year ended 7/31/04 $ 11.84 0.12 1.36 1.48 (0.12) -- Year ended 7/31/05 $ 13.20 0.18 1.76 1.94 (0.18) (0.35) Year ended 7/31/06 $ 14.61 0.17 0.72 0.89 (0.16) (0.18) Year ended 7/31/07 $ 15.16 0.17~ 1.80 1.97 (0.12) (0.06) - -------------------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS A SHARES + 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) Year ended 7/31/07 $ 14.96 0.12~ 1.78 1.90 (0.09) (0.06) - -------------------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS B SHARES + 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) Year ended 7/31/07 $ 14.98 --~ 1.78 1.78 (0.01) (0.06) - -------------------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS C SHARES + 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) Year ended 7/31/07 $ 14.98 --~ 1.79 1.79 (0.01) (0.06) - -------------------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS ADVISOR SHARES + Year ended 7/31/06 (c) $ 14.61 0.09 0.73 0.82 (0.09) (0.18) Year ended 7/31/07 $ 15.16 0.06~ 1.82 1.88 (0.08) (0.06) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS INSTITUTIONAL SHARES + Year ended 7/31/03 (0.11) $11.84 6.79% Year ended 7/31/04 (0.12) $13.20 12.50% Year ended 7/31/05 (0.53) $14.61 14.92% Year ended 7/31/06 (0.34) $15.16 6.12% Year ended 7/31/07 (0.18) $16.95 12.94% - ----------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS A SHARES + 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% Year ended 7/31/07 (0.15) $16.71 12.70% - ----------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS B SHARES + 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% Year ended 7/31/07 (0.07) $16.69 11.86% - ----------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS C SHARES + 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% Year ended 7/31/07 (0.07) $16.70 11.93% - ----------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS ADVISOR SHARES + Year ended 7/31/06 (c) (0.27) $15.16 5.63%* Year ended 7/31/07 (0.14) $16.90 12.39% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS INSTITUTIONAL SHARES + Year ended 7/31/03 $181,278 0.99% 0.92% 0.99% 13% Year ended 7/31/04 $ 90,222 1.04% 0.92% 0.84% 101% Year ended 7/31/05 $169,723 1.05% 0.92% 1.17% 102% Year ended 7/31/06 $166,510 1.03% 0.92% 1.09% 126% Year ended 7/31/07 $180,126 1.02%++ 0.92%++ 0.99% 141% - ---------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS A SHARES + Year ended 7/31/03 $ 21,288 1.24% 1.17% 0.72% 13% Year ended 7/31/04 $ 25,573 1.29% 1.17% 0.58% 101% Year ended 7/31/05 $ 24,026 1.31% 1.17% 0.99% 102% Year ended 7/31/06 $ 20,923 1.27% 1.17% 0.85% 126% Year ended 7/31/07 $ 18,972 1.27%++ 1.17%++ 0.75% 141% - ---------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS B SHARES + Year ended 7/31/03 $ 557 1.98% 1.92% (0.05%) 13% Year ended 7/31/04 $ 783 2.04% 1.92% (0.17%) 101% Year ended 7/31/05 $ 1,007 2.06% 1.92% 0.18% 102% Year ended 7/31/06 $ 953 2.03% 1.92% 0.09% 126% Year ended 7/31/07 $ 1,044 2.03%++ 1.92%++ (0.01%) 141% - ---------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS CLASS C SHARES + Year ended 7/31/03 $ 29 1.99% 1.92% (0.04%) 13% Year ended 7/31/04 $ 158 2.03% 1.92% (0.23%) 101% Year ended 7/31/05 $ 193 2.06% 1.92% 0.21% 102% Year ended 7/31/06 $ 112 2.02% 1.92% 0.13% 126% Year ended 7/31/07 $ 125 2.03%++ 1.92%++ (0.02%) 141% - ---------------------------------------------------------------------------------------------------------------------- STRUCTURED LARGE CAP PLUS ADVISOR SHARES + Year ended 7/31/06 (c) $ 3 1.57%** 1.42%** 0.58%** 126% Year ended 7/31/07 $ 466 1.53%++ 1.42%++ 0.32% 141% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 168-169 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX INSTITUTIONAL SHARES Year ended 7/31/03 $ 17.42 0.24 1.51 1.75 (0.24) -- Year ended 7/31/04 $ 18.93 0.29~ 2.12 2.41 (0.33) -- Year ended 7/31/05 $ 21.01 0.44~ 2.45 2.89 (0.44) -- Year ended 7/31/06 $ 23.46 0.42~ 0.79 1.21 (0.43) -- Year ended 7/31/07 $ 24.24 0.50~ 3.35 3.85 (0.49) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX CLASS A SHARES 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) -- Year ended 7/31/07 $ 24.16 0.43~ 3.34 3.77 (0.42) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX CLASS B SHARES 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) -- Year ended 7/31/07 $ 24.01 0.22~ 3.33 3.55 (0.22) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX CLASS C SHARES 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) -- Year ended 7/31/07 $ 24.03 0.22~ 3.34 3.56 (0.22) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX ADVISOR SHARES 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) -- Year ended 7/31/07 $ 24.13 0.36~ 3.34 3.70 (0.36) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX SELECT SHARES 10/20/03(d) to 7/31/04 $ 19.86 0.22~ 1.18 1.40 (0.26) -- Year ended 7/31/05 $ 21.00 0.41~ 2.47 2.88 (0.43) -- Year ended 7/31/06 $ 23.45 0.40~ 0.80 1.20 (0.42) -- Year ended 7/31/07 $ 24.23 0.47~ 3.35 3.82 (0.46) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX PREFERRED SHARES 10/20/03(d) to 7/31/04 $ 19.86 0.22~ 1.18 1.40 (0.25) -- Year ended 7/31/05 $ 21.01 0.43~ 2.41 2.84 (0.40) -- Year ended 7/31/06 $ 23.45 0.39~ 0.79 1.18 (0.40) -- Year ended 7/31/07 $ 24.23 0.45~ 3.37 3.82 (0.46) -- - -------------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX TRUST SHARES 10/20/03(d) to 7/31/04 $ 19.86 0.20~ 1.18 1.38 (0.23) -- Year ended 7/31/05 $ 21.01 0.37~ 2.46 2.83 (0.39) -- Year ended 7/31/06 $ 23.45 0.36~ 0.79 1.15 (0.37) -- Year ended 7/31/07 $ 24.23 0.43~ 3.36 3.79 (0.42) -- - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- EQUITY INDEX INSTITUTIONAL SHARES Year ended 7/31/03 (0.24) $18.93 10.22% Year ended 7/31/04 (0.33) $21.01 12.75% Year ended 7/31/05 (0.44) $23.46 13.86% Year ended 7/31/06 (0.43) $24.24 5.21% Year ended 7/31/07 (0.49) $27.60 15.92% - ----------------------------------------------------------------------------------- EQUITY INDEX CLASS A SHARES 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% Year ended 7/31/07 (0.42) $27.51 15.65% - ----------------------------------------------------------------------------------- EQUITY INDEX CLASS B SHARES 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% Year ended 7/31/07 (0.22) $27.34 14.79% - ----------------------------------------------------------------------------------- EQUITY INDEX CLASS C SHARES 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% Year ended 7/31/07 (0.22) $27.37 14.81% - ----------------------------------------------------------------------------------- EQUITY INDEX ADVISOR SHARES 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% Year ended 7/31/07 (0.36) $27.47 15.37% - ----------------------------------------------------------------------------------- EQUITY INDEX SELECT SHARES 10/20/03(d) to 7/31/04 (0.26) $21.00 7.03%* Year ended 7/31/05 (0.43) $23.45 13.79% Year ended 7/31/06 (0.42) $24.23 5.13% Year ended 7/31/07 (0.46) $27.59 15.83% - ----------------------------------------------------------------------------------- EQUITY INDEX PREFERRED SHARES 10/20/03(d) to 7/31/04 (0.25) $21.01 7.03%* Year ended 7/31/05 (0.40) $23.45 13.62% Year ended 7/31/06 (0.40) $24.23 5.06% Year ended 7/31/07 (0.46) $27.59 15.76% - ----------------------------------------------------------------------------------- EQUITY INDEX TRUST SHARES 10/20/03(d) to 7/31/04 (0.23) $21.01 6.95%* Year ended 7/31/05 (0.39) $23.45 13.53% Year ended 7/31/06 (0.37) $24.23 4.95% Year ended 7/31/07 (0.42) $27.60 15.69% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX INSTITUTIONAL SHARES Year ended 7/31/03 $ 583,530 0.58% 0.40% 1.42% 2% Year ended 7/31/04 $ 193,734 0.58% 0.27% 1.43% 14% Year ended 7/31/05 $ 168,279 0.62% 0.19% 1.97% 4% Year ended 7/31/06 $ 184,177 0.60% 0.19% 1.75% 6% Year ended 7/31/07 $ 193,180 0.61% 0.19% 1.84% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX CLASS A SHARES Year ended 7/31/03 $ 33,402 0.83% 0.65% 1.16% 2% Year ended 7/31/04 $ 72,944 0.86% 0.47% 1.19% 14% Year ended 7/31/05 $ 70,261 0.87% 0.44% 1.69% 4% Year ended 7/31/06 $ 65,204 0.85% 0.44% 1.52% 6% Year ended 7/31/07 $ 65,640 0.86% 0.44% 1.59% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX CLASS B SHARES Year ended 7/31/03 $ 2,409 1.57% 1.40% 0.40% 2% Year ended 7/31/04 $ 3,776 1.60% 1.23% 0.44% 14% Year ended 7/31/05 $ 4,399 1.63% 1.19% 0.93% 4% Year ended 7/31/06 $ 4,229 1.60% 1.19% 0.76% 6% Year ended 7/31/07 $ 3,961 1.61% 1.19% 0.84% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX CLASS C SHARES Year ended 7/31/03 $ 1,711 1.57% 1.40% 0.39% 2% Year ended 7/31/04 $ 1,990 1.60% 1.23% 0.44% 14% Year ended 7/31/05 $ 2,301 1.63% 1.19% 0.90% 4% Year ended 7/31/06 $ 1,998 1.60% 1.19% 0.77% 6% Year ended 7/31/07 $ 2,223 1.61% 1.19% 0.83% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX ADVISOR SHARES Year ended 7/31/03 $ 327 1.06% 0.90% 0.84% 2% Year ended 7/31/04 $ 1,296 1.11% 0.71% 0.94% 14% Year ended 7/31/05 $ 1,928 1.13% 0.69% 1.40% 4% Year ended 7/31/06 $ 1,819 1.10% 0.69% 1.26% 6% Year ended 7/31/07 $ 2,264 1.11% 0.69% 1.32% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX SELECT SHARES 10/20/03(d) to 7/31/04 $ 14,315 0.69%** 0.27%** 1.32%** 14% Year ended 7/31/05 $ 18,690 0.71% 0.27% 1.83% 4% Year ended 7/31/06 $ 17,558 0.68% 0.27% 1.67% 6% Year ended 7/31/07 $ 17,852 0.69% 0.27% 1.76% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX PREFERRED SHARES 10/20/03(d) to 7/31/04 $ 165,845 0.76%** 0.34%** 1.31%** 14% Year ended 7/31/05 $ 78,132 0.77% 0.34% 1.98% 4% Year ended 7/31/06 $ 64,939 0.75% 0.34% 1.62% 6% Year ended 7/31/07 $ 69,251 0.76% 0.34% 1.68% 4% - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX TRUST SHARES 10/20/03(d) to 7/31/04 $ 80,759 0.86%** 0.44%** 1.22%** 14% Year ended 7/31/05 $ 76,295 0.87% 0.44% 1.69% 4% Year ended 7/31/06 $ 67,747 0.85% 0.44% 1.52% 6% Year ended 7/31/07 $ 68,661 0.86% 0.44% 1.59% 4% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 170-171 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- BALANCED INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.91 0.15 0.49 0.64 (0.17) -- Year ended 7/31/04 $ 11.38 0.13 0.64 0.77 (0.15) -- Year ended 7/31/05 $ 12.00 0.24 0.80 1.04 (0.25) -- Year ended 7/31/06 $ 12.79 0.25 (0.44) (0.19) (0.25) -- Year ended 7/31/07 $ 12.35 0.41~@ 1.09 1.50 (0.36) -- - -------------------------------------------------------------------------------------------------------------------------------- BALANCED CLASS A SHARES 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) -- Year ended 7/31/07 $ 12.28 0.37~@ 1.08 1.45 (0.32) -- - -------------------------------------------------------------------------------------------------------------------------------- BALANCED CLASS B SHARES 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) -- Year ended 7/31/07 $ 12.13 0.27~@ 1.07 1.34 (0.22) -- - -------------------------------------------------------------------------------------------------------------------------------- BALANCED CLASS C SHARES 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) -- Year ended 7/31/07 $ 12.11 0.27~@ 1.07 1.34 (0.22) -- - -------------------------------------------------------------------------------------------------------------------------------- BALANCED ADVISOR SHARES 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) -- Year ended 7/31/07 $ 12.25 0.34~@ 1.08 1.42 (0.29) -- - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- BALANCED INSTITUTIONAL SHARES Year ended 7/31/03 (0.17) $11.38 5.94% Year ended 7/31/04 (0.15) $12.00 6.76% Year ended 7/31/05 (0.25) $12.79 8.73% Year ended 7/31/06 (0.25) $12.35 (1.51%) Year ended 7/31/07 (0.36) $13.49 12.33%@ - ----------------------------------------------------------------------------------- BALANCED CLASS A SHARES 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%) Year ended 7/31/07 (0.32) $13.41 12.02%@ - ----------------------------------------------------------------------------------- BALANCED CLASS B SHARES 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%) Year ended 7/31/07 (0.22) $13.25 11.23%@ - ----------------------------------------------------------------------------------- BALANCED CLASS C SHARES 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%) Year ended 7/31/07 (0.22) $13.23 11.26%@ - ----------------------------------------------------------------------------------- BALANCED ADVISOR SHARES 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%) Year ended 7/31/07 (0.29) $13.38 11.77%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- BALANCED INSTITUTIONAL SHARES Year ended 7/31/03 $ 177,052 1.12% 1.10% 1.39% 133% Year ended 7/31/04 $ 98,282 1.13% 1.13% 1.07% 166% Year ended 7/31/05 $ 59,868 1.18% 1.02% 1.89% 146% Year ended 7/31/06 $ 35,740 1.22% 0.97% 1.86% 191% Year ended 7/31/07 $ 23,329 1.34% 0.96% 2.84% 59% - ---------------------------------------------------------------------------------------------------------------------- BALANCED CLASS A SHARES Year ended 7/31/03 $ 73,287 1.37% 1.35% 1.14% 133% Year ended 7/31/04 $ 74,231 1.38% 1.38% 0.79% 166% Year ended 7/31/05 $ 59,274 1.44% 1.27% 1.63% 146% Year ended 7/31/06 $ 37,286 1.47% 1.22% 1.61% 191% Year ended 7/31/07 $ 26,863 1.59% 1.21% 2.56% 59% - ---------------------------------------------------------------------------------------------------------------------- BALANCED CLASS B SHARES Year ended 7/31/03 $ 13,972 2.12% 2.10% 0.39% 133% Year ended 7/31/04 $ 13,117 2.13% 2.13% 0.05% 166% Year ended 7/31/05 $ 10,957 2.19% 2.02% 0.86% 146% Year ended 7/31/06 $ 7,536 2.22% 1.97% 0.86% 191% Year ended 7/31/07 $ 5,923 2.33% 1.96% 1.80% 59% - ---------------------------------------------------------------------------------------------------------------------- BALANCED CLASS C SHARES Year ended 7/31/03 $ 5,747 2.12% 2.10% 0.38% 133% Year ended 7/31/04 $ 4,731 2.13% 2.13% 0.05% 166% Year ended 7/31/05 $ 4,046 2.19% 2.02% 0.85% 146% Year ended 7/31/06 $ 1,669 2.21% 1.97% 0.86% 191% Year ended 7/31/07 $ 1,201 2.33% 1.96% 1.82% 59% - ---------------------------------------------------------------------------------------------------------------------- BALANCED ADVISOR SHARES Year ended 7/31/03 $ 104 1.61% 1.60% 0.82% 133% Year ended 7/31/04 $ 176 1.64% 1.64% 0.52% 166% Year ended 7/31/05 $ 185 1.69% 1.52% 1.33% 146% Year ended 7/31/06 $ 123 1.72% 1.47% 1.37% 191% Year ended 7/31/07 $ 121 1.84% 1.46% 2.26% 59% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 172-173 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 NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 $ 5.89 (0.04)~ 2.40 2.36 -- (0.05) Year ended 7/31/04 $ 8.20 (0.02)~ 2.66 2.64 -- (0.52) Year ended 7/31/05 $ 10.32 (0.01)~ 1.41 1.40 -- (0.72) Year ended 7/31/06 $ 11.00 0.02~ 0.17 0.19 (0.01) (3.13) Year ended 7/31/07 $ 8.05 0.01~ 0.93 0.94 (0.05) (1.92) - -------------------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE CLASS A SHARES 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) Year ended 7/31/07 $ 7.80 (0.01)~ 0.90 0.89 (0.04) (1.92) - -------------------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE CLASS B SHARES 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) Year ended 7/31/07 $ 7.52 (0.06)~ 0.86 0.80 (0.01) (1.92) - -------------------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE CLASS C SHARES 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) Year ended 7/31/07 $ 7.52 (0.05)~ 0.84 0.79 -- (1.92) - -------------------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE ADVISOR SHARES 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) Year ended 7/31/07 $ 7.71 (0.02)~ 0.89 0.87 (0.03) (1.92) - -------------------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE INSTITUTIONAL SHARES 4/1/03(d) to 7/31/03 $ 15.00 --^ 2.54 2.54 -- -- Year ended 7/31/04 $ 17.54 (0.03)~ 3.50 3.47 (0.02) (0.98) Year ended 7/31/05 $ 20.01 (0.04)~ 4.51 4.47 -- (1.66) Year ended 7/31/06 $ 22.82 0.09 0.46 0.55 (0.05) (2.43) Year ended 7/31/07 $ 20.89 0.13~ 2.12 2.25 (0.08) (2.77) - -------------------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE 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) Year ended 7/31/07 $ 20.74 0.08~ 2.11 2.19 (0.07) (2.77) - -------------------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE 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) Year ended 7/31/07 $ 20.18 (0.08)~ 2.05 1.97 (0.04) (2.77) - -------------------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE 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) Year ended 7/31/07 $ 20.14 (0.08)~ 2.06 1.98 (0.04) (2.77) - -------------------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE 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) Year ended 7/31/07 $ 20.56 0.02~ 2.09 2.11 (0.06) (2.77) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- MICRO CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 (0.05) $ 8.20 40.26% Year ended 7/31/04 (0.52) $10.32 32.84% Year ended 7/31/05 (0.72) $11.00 13.86% Year ended 7/31/06 (3.14) $ 8.05 1.93% Year ended 7/31/07 (1.97) $ 7.02 12.53% - ----------------------------------------------------------------------------------- MICRO CAP VALUE CLASS A SHARES 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% Year ended 7/31/07 (1.96) $ 6.73 12.24% - ----------------------------------------------------------------------------------- MICRO CAP VALUE CLASS B SHARES 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% Year ended 7/31/07 (1.93) $ 6.39 11.38% - ----------------------------------------------------------------------------------- MICRO CAP VALUE CLASS C SHARES 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% Year ended 7/31/07 (1.92) $ 6.39 11.28% - ----------------------------------------------------------------------------------- MICRO CAP VALUE ADVISOR SHARES 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% Year ended 7/31/07 (1.95) $ 6.63 12.08% - ----------------------------------------------------------------------------------- SMALL CAP VALUE INSTITUTIONAL SHARES 4/1/03(d) to 7/31/03 -- $17.54 16.87%* Year ended 7/31/04 (1.00) $20.01 20.11% Year ended 7/31/05 (1.66) $22.82 23.59% Year ended 7/31/06 (2.48) $20.89 2.62% Year ended 7/31/07 (2.85) $20.29 10.77% - ----------------------------------------------------------------------------------- SMALL CAP VALUE 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% Year ended 7/31/07 (2.84) $20.09 10.53% - ----------------------------------------------------------------------------------- SMALL CAP VALUE 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% Year ended 7/31/07 (2.81) $19.34 9.63% - ----------------------------------------------------------------------------------- SMALL CAP VALUE 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% Year ended 7/31/07 (2.81) $19.31 9.66% - ----------------------------------------------------------------------------------- SMALL CAP VALUE 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% Year ended 7/31/07 (2.83) $19.84 10.20% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 $ 100,676 1.47% 1.40% (0.68%) 28% Year ended 7/31/04 $ 155,798 1.33% 1.33% (0.25%) 23% Year ended 7/31/05 $ 98,885 1.35% 1.35% (0.07%) 12% Year ended 7/31/06 $ 72,981 1.40% 1.37% 0.23% 42% Year ended 7/31/07 $ 51,541 1.52% 1.35% 0.17% 72% - ---------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE CLASS A SHARES Year ended 7/31/03 $ 18,297 1.69% 1.65% (0.95%) 28% Year ended 7/31/04 $ 41,402 1.58% 1.58% (0.49%) 23% Year ended 7/31/05 $ 29,172 1.60% 1.60% (0.31%) 12% Year ended 7/31/06 $ 17,759 1.65% 1.62% (0.05%) 42% Year ended 7/31/07 $ 11,486 1.77% 1.60% (0.08%) 72% - ---------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE CLASS B SHARES Year ended 7/31/03 $ 4,254 2.47% 2.40% (1.66%) 28% Year ended 7/31/04 $ 6,937 2.33% 1.89% (0.81%) 23% Year ended 7/31/05 $ 7,348 2.36% 1.73% (0.40%) 12% Year ended 7/31/06 $ 6,032 2.40% 2.37% (0.73%) 42% Year ended 7/31/07 $ 5,069 2.53% 2.35% (0.87%) 72% - ---------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE CLASS C SHARES Year ended 7/31/03 $ 1,166 2.47% 2.40% (1.66%) 28% Year ended 7/31/04 $ 5,624 2.33% 1.81% (0.82%) 23% Year ended 7/31/05 $ 6,143 2.36% 1.73% (0.39%) 12% Year ended 7/31/06 $ 5,161 2.40% 2.37% (0.71%) 42% Year ended 7/31/07 $ 2,853 2.51% 2.35% (0.75%) 72% - ---------------------------------------------------------------------------------------------------------------------- MICRO CAP VALUE ADVISOR SHARES Year ended 7/31/03 $ 25,342 1.97% 1.90% (1.15%) 28% Year ended 7/31/04 $ 41,514 1.83% 1.68% (0.61%) 23% Year ended 7/31/05 $ 36,031 1.85% 1.64% (0.34%) 12% Year ended 7/31/06 $ 17,297 1.90% 1.87% (0.34%) 42% Year ended 7/31/07 $ 9,370 2.01% 1.85% (0.33%) 72% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE INSTITUTIONAL SHARES 4/1/03(d) to 7/31/03 $ 72,783 1.60%** 1.24%** 0.03%** 39% Year ended 7/31/04 $ 107,344 1.41% 1.25% (0.15%) 279% Year ended 7/31/05 $ 158,505 1.20% 1.20% (0.20%) 105% Year ended 7/31/06 $ 116,503 1.24% 1.21% 0.39% 99% Year ended 7/31/07 $ 110,873 1.25% 1.20% 0.61% 46% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE CLASS A SHARES 4/1/03(d) to 7/31/03 $ 216 1.86%** 1.47%** (0.21%)** 39% Year ended 7/31/04 $ 2,277 1.63% 1.49% (0.53%) 279% Year ended 7/31/05 $ 2,715 1.45% 1.45% (0.48%) 105% Year ended 7/31/06 $ 2,434 1.49% 1.46% 0.11% 99% Year ended 7/31/07 $ 2,198 1.50% 1.45% 0.36% 46% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE CLASS B SHARES 4/1/03(d) to 7/31/03 $ 103 2.60%** 2.22%** (1.07%)** 39% Year ended 7/31/04 $ 503 2.38% 2.24% (1.26%) 279% Year ended 7/31/05 $ 1,142 2.20% 2.19% (1.18%) 105% Year ended 7/31/06 $ 1,221 2.24% 2.21% (0.64%) 99% Year ended 7/31/07 $ 1,104 2.25% 2.20% (0.39%) 46% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE CLASS C SHARES 4/1/03(d) to 7/31/03 $ 15 2.62%** 2.23%** (0.97%)** 39% Year ended 7/31/04 $ 561 2.38% 2.24% (1.31%) 279% Year ended 7/31/05 $ 927 2.20% 2.19% (1.21%) 105% Year ended 7/31/06 $ 839 2.24% 2.21% (0.64%) 99% Year ended 7/31/07 $ 713 2.25% 2.20% (0.39%) 46% - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP VALUE ADVISOR SHARES 4/1/03(d) to 7/31/03 $ 216 2.11%** 1.72%** (0.51%)** 39% Year ended 7/31/04 $ 1,606 1.88% 1.74% (0.79%) 279% Year ended 7/31/05 $ 1,979 1.70% 1.70% (0.72%) 105% Year ended 7/31/06 $ 1,185 1.74% 1.71% (0.09%) 99% Year ended 7/31/07 $ 882 1.75% 1.70% 0.11% 46% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 174-175 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 $ 15.86 0.02 3.14 3.16 -- -- Year ended 7/31/04 $ 19.02 0.06 3.62 3.68 (0.05) (0.07) Year ended 7/31/05 $ 22.58 0.10 4.85 4.95 (0.11) (1.38) Year ended 7/31/06 $ 26.04 0.26 1.77 2.03 (0.24) (2.15) Year ended 7/31/07 $ 25.68 0.37~ 4.19 4.56 (0.36) (4.23) - -------------------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE CLASS A SHARES 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) Year ended 7/31/07 $ 25.39 0.30~ 4.13 4.43 (0.29) (4.23) - -------------------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE CLASS B SHARES 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) Year ended 7/31/07 $ 24.61 0.10~ 3.99 4.09 (0.12) (4.23) - -------------------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE CLASS C SHARES 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) Year ended 7/31/07 $ 24.59 0.11~ 3.98 4.09 (0.13) (4.23) - -------------------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE ADVISOR SHARES 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) Year ended 7/31/07 $ 25.26 0.23~ 4.11 4.34 (0.23) (4.23) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- MULTI CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 -- $19.02 19.92% Year ended 7/31/04 (0.12) $22.58 19.36% Year ended 7/31/05 (1.49) $26.04 22.51% Year ended 7/31/06 (2.39) $25.68 8.38% Year ended 7/31/07 (4.59) $25.65 18.93% - ----------------------------------------------------------------------------------- MULTI CAP VALUE CLASS A SHARES 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% Year ended 7/31/07 (4.52) $25.30 18.58% - ----------------------------------------------------------------------------------- MULTI CAP VALUE CLASS B SHARES 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% Year ended 7/31/07 (4.35) $24.35 17.65% - ----------------------------------------------------------------------------------- MULTI CAP VALUE CLASS C SHARES 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% Year ended 7/31/07 (4.36) $24.32 17.67% - ----------------------------------------------------------------------------------- MULTI CAP VALUE ADVISOR SHARES 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% Year ended 7/31/07 (4.46) $25.14 18.30% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 $ 182,485 1.36% 1.33% 0.17% 23% Year ended 7/31/04 $ 235,228 1.30% 1.30% 0.29% 17% Year ended 7/31/05 $ 270,131 1.30% 1.30% 0.41% 24% Year ended 7/31/06 $ 226,189 1.31% 1.29% 0.99% 40% Year ended 7/31/07 $ 223,709 1.31% 1.22% 1.40% 23% - ---------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE CLASS A SHARES Year ended 7/31/03 $ 19,667 1.64% 1.58% 0.01% 23% Year ended 7/31/04 $ 33,156 1.55% 1.55% 0.04% 17% Year ended 7/31/05 $ 39,433 1.55% 1.55% 0.15% 24% Year ended 7/31/06 $ 38,714 1.56% 1.54% 0.74% 40% Year ended 7/31/07 $ 44,717 1.56% 1.47% 1.14% 23% - ---------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE CLASS B SHARES Year ended 7/31/03 $ 14,087 2.39% 2.33% (0.81%) 23% Year ended 7/31/04 $ 18,795 2.30% 2.30% (0.71%) 17% Year ended 7/31/05 $ 22,278 2.30% 2.30% (0.60%) 24% Year ended 7/31/06 $ 21,679 2.31% 2.29% (0.01%) 40% Year ended 7/31/07 $ 23,974 2.31% 2.22% 0.40% 23% - ---------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE CLASS C SHARES Year ended 7/31/03 $ 2,036 2.39% 2.33% (0.81%) 23% Year ended 7/31/04 $ 3,824 2.30% 2.30% (0.71%) 17% Year ended 7/31/05 $ 4,553 2.30% 2.30% (0.58%) 24% Year ended 7/31/06 $ 4,455 2.31% 2.29% (0.01%) 40% Year ended 7/31/07 $ 8,150 2.31% 2.22% 0.40% 23% - ---------------------------------------------------------------------------------------------------------------------- MULTI CAP VALUE ADVISOR SHARES Year ended 7/31/03 $ 37,047 1.89% 1.83% (0.30%) 23% Year ended 7/31/04 $ 39,983 1.80% 1.80% (0.20%) 17% Year ended 7/31/05 $ 42,656 1.80% 1.80% (0.09%) 24% Year ended 7/31/06 $ 32,861 1.81% 1.79% 0.48% 40% Year ended 7/31/07 $ 32,529 1.81% 1.72% 0.91% 23% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 176-177 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.85 0.18~ 1.14 1.32 (0.16) (0.16) Year ended 7/31/04 $ 11.85 0.15 2.08 2.23 (0.16) (0.40) Year ended 7/31/05 $ 13.52 0.18 1.95 2.13 (0.18) (0.39) Year ended 7/31/06 $ 15.08 0.21 1.07 1.28 (0.20) (1.44) Year ended 7/31/07 $ 14.72 0.22~@ 1.80 2.02 (0.22) (2.13) - -------------------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS A SHARES 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) Year ended 7/31/07 $ 14.69 0.18~@ 1.79 1.97 (0.18) (2.13) - -------------------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS B SHARES 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) Year ended 7/31/07 $ 14.81 0.08~@ 1.80 1.88 (0.07) (2.13) - -------------------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS C SHARES 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) Year ended 7/31/07 $ 14.56 0.08~@ 1.77 1.85 (0.07) (2.13) - -------------------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE ADVISOR SHARES Year ended 7/31/06 (c) $ 15.05 0.11 1.09 1.20 (0.15) (1.44) Year ended 7/31/07 $ 14.66 0.14~@ 1.80 1.94 (0.15) (2.13) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 (0.32) $11.85 12.53% Year ended 7/31/04 (0.56) $13.52 19.22% Year ended 7/31/05 (0.57) $15.08 16.07% Year ended 7/31/06 (1.64) $14.72 9.29% Year ended 7/31/07 (2.35) $14.39 14.52%@ - ----------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS A SHARES 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% Year ended 7/31/07 (2.31) $14.35 14.13%@ - ----------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS B SHARES 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% Year ended 7/31/07 (2.20) $14.49 13.38%@ - ----------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS C SHARES 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% Year ended 7/31/07 (2.20) $14.21 13.34%@ - ----------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE ADVISOR SHARES Year ended 7/31/06 (c) (1.59) $14.66 8.72% Year ended 7/31/07 (2.28) $14.32 13.90%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE INSTITUTIONAL SHARES Year ended 7/31/03 $ 335,967 1.10% 1.08% 1.74% 79% Year ended 7/31/04 $ 632,120 1.07% 1.07% 1.27% 22% Year ended 7/31/05 $ 574,251 1.07% 1.07% 1.27% 31% Year ended 7/31/06 $ 581,507 1.07% 1.07% 1.40% 57% Year ended 7/31/07 $ 649,497 1.07% 1.03% 1.50% 49% - ---------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS A SHARES Year ended 7/31/03 $ 14,100 1.36% 1.33% 1.51% 79% Year ended 7/31/04 $ 21,738 1.32% 1.32% 1.00% 22% Year ended 7/31/05 $ 24,805 1.32% 1.32% 1.01% 31% Year ended 7/31/06 $ 22,968 1.32% 1.32% 1.16% 57% Year ended 7/31/07 $ 29,725 1.32% 1.27% 1.24% 49% - ---------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS B SHARES Year ended 7/31/03 $ 3,408 2.11% 2.08% 0.76% 79% Year ended 7/31/04 $ 4,807 2.07% 2.07% 0.27% 22% Year ended 7/31/05 $ 5,739 2.07% 2.07% 0.26% 31% Year ended 7/31/06 $ 5,783 2.07% 2.07% 0.40% 57% Year ended 7/31/07 $ 5,872 2.07% 2.03% 0.50% 49% - ---------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE CLASS C SHARES Year ended 7/31/03 $ 884 2.10% 2.08% 0.75% 79% Year ended 7/31/04 $ 1,832 2.06% 2.06% 0.27% 22% Year ended 7/31/05 $ 2,313 2.07% 2.07% 0.26% 31% Year ended 7/31/06 $ 2,227 2.07% 2.07% 0.41% 57% Year ended 7/31/07 $ 2,533 2.07% 2.02% 0.50% 49% - ---------------------------------------------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE ADVISOR SHARES Year ended 7/31/06 (c) $ 148 1.57% 1.57% 0.84% 57% Year ended 7/31/07 $ 370 1.57% 1.52% 0.97% 49% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 178-179 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.04# 1.35# 1.39 (0.04) -- Year ended 7/31/04 $ 11.35 0.14# 1.31# 1.45 (0.13) (0.18) Year ended 7/31/05 $ 12.49 0.16# 1.94# 2.10 (0.15) (0.08) Year ended 7/31/06 $ 14.36 0.21# 0.52# 0.73 (0.20) (0.31) Year ended 7/31/07 $ 14.58 0.14#~ 2.39# 2.53 (0.12) (0.41) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(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) Year ended 7/31/07 $ 14.53 0.10#~ 2.38# 2.48 (0.09) (0.41) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(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) Year ended 7/31/07 $ 14.24 (0.02)#~ 2.33# 2.31 (0.02) (0.42) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(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) Year ended 7/31/07 $ 14.24 (0.04)#~ 2.35# 2.31 (0.03) (0.41) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 14.36 0.15# 0.50# 0.65 (0.16) (0.31) Year ended 7/31/07 $ 14.54 0.06#~ 2.38# 2.44 (0.06) (0.42) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.09# 1.58# 1.67 (0.08) -- Year ended 7/31/04 $ 11.59 0.19# 1.03# 1.22 (0.19) (0.14) Year ended 7/31/05 $ 12.48 0.22# 1.50# 1.72 (0.21) (0.08) Year ended 7/31/06 $ 13.91 0.28# 0.34# 0.62 (0.28) (0.27) Year ended 7/31/07 $ 13.98 0.25#~ 1.84# 2.09 (0.26) (0.37) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(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) Year ended 7/31/07 $ 13.96 0.21#~ 1.83# 2.04 (0.22) (0.36) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(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) Year ended 7/31/07 $ 13.90 0.10#~ 1.82# 1.92 (0.11) (0.37) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(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) Year ended 7/31/07 $ 13.89 0.10#~ 1.83# 1.93 (0.11) (0.37) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 13.91 0.24# 0.32# 0.56 (0.25) (0.27) Year ended 7/31/07 $ 13.95 0.19#~ 1.81# 2.00 (0.18) (0.36) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.04) $11.35 13.92%* Year ended 7/31/04 (0.31) $12.49 12.83% Year ended 7/31/05 (0.23) $14.36 16.91% Year ended 7/31/06 (0.51) $14.58 5.13% Year ended 7/31/07 (0.53) $16.58 17.59% - ----------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(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% Year ended 7/31/07 (0.50) $16.51 17.29% - ----------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(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% Year ended 7/31/07 (0.44) $16.11 16.44% - ----------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(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% Year ended 7/31/07 (0.44) $16.11 16.45% - ----------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) (0.47) $14.54 4.61% Year ended 7/31/07 (0.48) $16.50 17.00% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.08) $11.59 16.78%* Year ended 7/31/04 (0.33) $12.48 10.54% Year ended 7/31/05 (0.29) $13.91 13.87% Year ended 7/31/06 (0.55) $13.98 4.60% Year ended 7/31/07 (0.63) $15.44 15.16% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(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% Year ended 7/31/07 (0.58) $15.42 14.82% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(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% Year ended 7/31/07 (0.48) $15.34 13.97% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(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% Year ended 7/31/07 (0.48) $15.34 13.98% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) (0.52) $13.95 4.11% Year ended 7/31/07 (0.54) $15.41 14.57% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 32,421 0.78%** 0.08%** 0.45%** 79% Year ended 7/31/04 $ 52,085 0.51% 0.08% 1.09% 22% Year ended 7/31/05 $ 70,072 0.47% 0.08% 1.15% 35% Year ended 7/31/06 $ 101,365 0.48% 0.08% 1.38% 14% Year ended 7/31/07 $ 119,437 0.49% 0.08% 0.87% 14% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10,090 1.24%** 0.33%** 0.16%** 79% Year ended 7/31/04 $ 38,249 0.76% 0.33% 0.80% 22% Year ended 7/31/05 $ 47,172 0.72% 0.33% 0.91% 35% Year ended 7/31/06 $ 50,416 0.72% 0.33% 1.15% 14% Year ended 7/31/07 $ 57,421 0.73% 0.33% 0.62% 14% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)CLASS B SHARES 8/1/02(d) to 7/31/03 $ 3,587 2.06%** 1.08%** (0.54%)** 79% Year ended 7/31/04 $ 12,106 1.51% 1.08% 0.03% 22% Year ended 7/31/05 $ 16,203 1.47% 1.08% 0.15% 35% Year ended 7/31/06 $ 16,926 1.47% 1.08% 0.39% 14% Year ended 7/31/07 $ 18,547 1.49% 1.08% (0.13%) 14% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)CLASS C SHARES 8/1/02(d) to 7/31/03 $ 532 2.20%** 1.08%** (0.62%)** 79% Year ended 7/31/04 $ 1,916 1.51% 1.08% 0.06% 22% Year ended 7/31/05 $ 2,164 1.47% 1.08% 0.14% 35% Year ended 7/31/06 $ 2,661 1.47% 1.08% 0.37% 14% Year ended 7/31/07 $ 3,016 1.49% 1.08% (0.24%) 14% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL AGGRESSIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 785 1.00% 0.58% 0.41% 14% Year ended 7/31/07 $ 1,169 0.99% 0.58% 0.37% 14% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 62,677 0.54%** 0.08%** 1.15%** 55% Year ended 7/31/04 $ 82,264 0.45% 0.08% 1.56% 16% Year ended 7/31/05 $ 110,379 0.44% 0.08% 1.62% 35% Year ended 7/31/06 $ 135,542 0.45% 0.08% 2.09% 19% Year ended 7/31/07 $ 146,973 0.47% 0.08% 1.68% 20% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)CLASS A SHARES 8/1/02(d) to 7/31/03 $ 33,806 0.90%** 0.33%** 0.86%** 55% Year ended 7/31/04 $ 94,739 0.70% 0.33% 1.32% 16% Year ended 7/31/05 $ 125,130 0.69% 0.33% 1.38% 35% Year ended 7/31/06 $ 128,564 0.70% 0.33% 1.86% 19% Year ended 7/31/07 $ 127,824 0.72% 0.33% 1.42% 20% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)CLASS B SHARES 8/1/02(d) to 7/31/03 $ 12,606 1.60%** 1.08%** 0.10%** 55% Year ended 7/31/04 $ 39,636 1.45% 1.08% 0.53% 16% Year ended 7/31/05 $ 50,000 1.44% 1.08% 0.62% 35% Year ended 7/31/06 $ 53,395 1.45% 1.08% 1.10% 19% Year ended 7/31/07 $ 56,679 1.47% 1.08% 0.68% 20% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)CLASS C SHARES 8/1/02(d) to 7/31/03 $ 1,386 1.61%** 1.08%** 0.06%** 55% Year ended 7/31/04 $ 8,046 1.45% 1.08% 0.48% 16% Year ended 7/31/05 $ 9,034 1.44% 1.08% 0.62% 35% Year ended 7/31/06 $ 8,196 1.45% 1.08% 1.11% 19% Year ended 7/31/07 $ 9,012 1.47% 1.08% 0.68% 20% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY AGGRESSIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 1,370 0.97% 0.58% 1.48% 19% Year ended 7/31/07 $ 1,966 0.97% 0.58% 1.26% 20% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 180-181 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.14# 0.92# 1.06 (0.13) -- Year ended 7/31/04 $ 10.93 0.21# 0.76# 0.97 (0.21) (0.12) Year ended 7/31/05 $ 11.57 0.27# 0.97# 1.24 (0.26) (0.03) Year ended 7/31/06 $ 12.52 0.33# 0.15# 0.48 (0.33) (0.24) Year ended 7/31/07 $ 12.43 0.33#~ 1.21# 1.54 (0.33) (0.30) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(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) Year ended 7/31/07 $ 12.41 0.29#~ 1.22# 1.51 (0.30) (0.30) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(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) Year ended 7/31/07 $ 12.35 0.19#~ 1.21# 1.40 (0.20) (0.30) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(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) Year ended 7/31/07 $ 12.36 0.19#~ 1.21# 1.40 (0.20) (0.30) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 12.52 0.29# 0.11# 0.40 (0.29) (0.24) Year ended 7/31/07 $ 12.39 0.26#~ 1.22# 1.48 (0.27) (0.30) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.18# 0.60# 0.78 (0.16) -- Year ended 7/31/04 $ 10.62 0.27# 0.51# 0.78 (0.25) (0.20) Year ended 7/31/05 $ 10.95 0.27# 0.73# 1.00 (0.27) (0.09) Year ended 7/31/06 $ 11.59 0.34# 0.04# 0.38 (0.34) (0.27) Year ended 7/31/07 $ 11.36 0.34#~ 0.93# 1.27 (0.35) (0.33) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(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) Year ended 7/31/07 $ 11.35 0.31#~ 0.92# 1.23 (0.32) (0.33) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(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) Year ended 7/31/07 $ 11.30 0.22#~ 0.92# 1.14 (0.23) (0.33) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(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) Year ended 7/31/07 $ 11.32 0.22#~ 0.91# 1.13 (0.23) (0.33) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 11.59 0.25# 0.07# 0.32 (0.31) (0.27) Year ended 7/31/07 $ 11.33 0.28#~ 0.92# 1.20 (0.29) (0.32) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.13) $10.93 10.66%* Year ended 7/31/04 (0.33) $11.57 8.84% Year ended 7/31/05 (0.29) $12.52 10.79% Year ended 7/31/06 (0.57) $12.43 3.90% Year ended 7/31/07 (0.63) $13.34 12.60% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATE(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% Year ended 7/31/07 (0.60) $13.32 12.32% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATE(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% Year ended 7/31/07 (0.50) $13.25 11.47% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATE(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% Year ended 7/31/07 (0.50) $13.26 11.46% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)ADVISOR SHARES Year ended 7/31/06 (c) (0.53) $12.39 3.27% Year ended 7/31/07 (0.57) $13.30 12.09% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.16) $10.62 7.87%* Year ended 7/31/04 (0.45) $10.95 7.39% Year ended 7/31/05 (0.36) $11.59 9.24% Year ended 7/31/06 (0.61) $11.36 3.39% Year ended 7/31/07 (0.68) $11.95 11.24% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(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% Year ended 7/31/07 (0.65) $11.93 10.96% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(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% Year ended 7/31/07 (0.56) $11.88 10.17% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(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% Year ended 7/31/07 (0.56) $11.89 10.08% - ----------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) (0.58) $11.33 2.84% Year ended 7/31/07 (0.61) $11.92 10.71% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 71,538 0.52%** 0.08%** 1.82%** 55% Year ended 7/31/04 $ 315,055 0.43% 0.08% 1.76% 14% Year ended 7/31/05 $ 340,163 0.42% 0.08% 2.17% 41% Year ended 7/31/06 $ 369,903 0.43% 0.08% 2.70% 30% Year ended 7/31/07 $ 369,880 0.44% 0.08% 2.48% 18% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)CLASS A SHARES 8/1/02(d) to 7/31/03 $ 28,991 0.84%** 0.33%** 1.52%** 55% Year ended 7/31/04 $ 98,293 0.68% 0.33% 1.79% 14% Year ended 7/31/05 $ 106,044 0.67% 0.33% 1.92% 41% Year ended 7/31/06 $ 100,588 0.68% 0.33% 2.46% 30% Year ended 7/31/07 $ 92,719 0.69% 0.33% 2.23% 18% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)CLASS B SHARES 8/1/02(d) to 7/31/03 $ 14,631 1.63%** 1.08%** 0.74%** 55% Year ended 7/31/04 $ 36,778 1.43% 1.08% 1.05% 14% Year ended 7/31/05 $ 44,111 1.42% 1.08% 1.17% 41% Year ended 7/31/06 $ 43,234 1.43% 1.08% 1.70% 30% Year ended 7/31/07 $ 43,013 1.44% 1.08% 1.48% 18% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)CLASS C SHARES 8/1/02(d) to 7/31/03 $ 1,335 1.66%** 1.08%** 0.70%** 55% Year ended 7/31/04 $ 7,442 1.43% 1.08% 1.04% 14% Year ended 7/31/05 $ 7,912 1.42% 1.08% 1.16% 41% Year ended 7/31/06 $ 6,495 1.43% 1.08% 1.70% 30% Year ended 7/31/07 $ 6,158 1.44% 1.08% 1.48% 18% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 422 0.94% 0.58% 2.13% 30% Year ended 7/31/07 $ 430 0.94% 0.58% 1.98% 18% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 40,412 0.60%** 0.08%** 2.23%** 72% Year ended 7/31/04 $ 38,097 0.49% 0.08% 2.33% 19% Year ended 7/31/05 $ 38,606 0.47% 0.08% 2.44% 38% Year ended 7/31/06 $ 42,683 0.50% 0.08% 3.05% 22% Year ended 7/31/07 $ 41,336 0.54% 0.08% 2.89% 30% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)CLASS A SHARES 8/1/02(d) to 7/31/03 $ 19,449 1.04%** 0.33%** 1.82%** 72% Year ended 7/31/04 $ 40,851 0.74% 0.33% 2.09% 19% Year ended 7/31/05 $ 41,446 0.72% 0.33% 2.18% 38% Year ended 7/31/06 $ 37,479 0.75% 0.33% 2.80% 22% Year ended 7/31/07 $ 35,676 0.79% 0.33% 2.63% 30% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)CLASS B SHARES 8/1/02(d) to 7/31/03 $ 9,083 1.80%** 1.08%** 1.09%** 72% Year ended 7/31/04 $ 21,122 1.49% 1.08% 1.31% 19% Year ended 7/31/05 $ 22,752 1.47% 1.08% 1.44% 38% Year ended 7/31/06 $ 20,488 1.50% 1.08% 2.05% 22% Year ended 7/31/07 $ 18,839 1.54% 1.08% 1.89% 30% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)CLASS C SHARES 8/1/02(d) to 7/31/03 $ 1,017 1.73%** 1.08%** 1.07%** 72% Year ended 7/31/04 $ 3,576 1.49% 1.08% 1.26% 19% Year ended 7/31/05 $ 4,029 1.47% 1.08% 1.42% 38% Year ended 7/31/06 $ 3,058 1.50% 1.08% 2.05% 22% Year ended 7/31/07 $ 2,755 1.54% 1.08% 1.88% 30% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 62 1.01% 0.58% 2.76% 22% Year ended 7/31/07 $ 68 1.04% 0.58% 2.38% 30% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 182-183 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM ------------------------------ ----------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.23# 0.52# 0.75 (0.21) -- Year ended 7/31/04 $ 10.54 0.31# 0.26# 0.57 (0.29) (0.16) Year ended 7/31/05 $ 10.66 0.31# 0.36# 0.67 (0.32) (0.09) Year ended 7/31/06 $ 10.92 0.40#~ (0.09)# 0.31 (0.40) (0.11) Year ended 7/31/07 $ 10.72 0.41#~ 0.49# 0.90 (0.41) (0.22) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(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) Year ended 7/31/07 $ 10.70 0.38#~ 0.49# 0.87 (0.38) (0.22) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(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) Year ended 7/31/07 $ 10.67 0.29#~ 0.50# 0.79 (0.30) (0.21) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(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) Year ended 7/31/07 $ 10.67 0.29#~ 0.51# 0.80 (0.30) (0.22) - -------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 10.92 0.36#~ (0.12)# 0.24 (0.36) (0.11) Year ended 7/31/07 $ 10.69 0.35#~ 0.51# 0.86 (0.36) (0.22) - -------------------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.63 0.58 0.25 0.83 (0.55) -- Year ended 7/31/04 $ 10.91 0.51 0.25 0.76 (0.52) -- Year ended 7/31/05 $ 11.15 0.51 0.39 0.90 (0.50) (0.01) Year ended 7/31/06 $ 11.54 0.52~ (0.23) 0.29 (0.52) (0.03) Year ended 7/31/07 $ 11.28 0.55~ 0.01 0.56 (0.55) (0.11) - -------------------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME 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) Year ended 7/31/07 $ 11.25 0.52~ 0.02 0.54 (0.52) (0.12) - -------------------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME 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) Year ended 7/31/07 $ 11.25 0.43~ 0.02 0.45 (0.44) (0.11) - -------------------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME CLASS C SHARES 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) Year ended 7/31/07 $ 11.17 0.43~ 0.02 0.45 (0.44) (0.11) - -------------------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME ADVISOR SHARES 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) Year ended 7/31/07 $ 11.24 0.49~ 0.03 0.52 (0.50) (0.12) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.21) $10.54 7.58%* Year ended 7/31/04 (0.45) $10.66 5.44% Year ended 7/31/05 (0.41) $10.92 6.38% Year ended 7/31/06 (0.51) $10.72 2.88% Year ended 7/31/07 (0.63) $10.99 8.58% - ----------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(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% Year ended 7/31/07 (0.60) $10.97 8.33% - ----------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(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% Year ended 7/31/07 (0.51) $10.95 7.53% - ----------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(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% Year ended 7/31/07 (0.52) $10.95 7.59% - ----------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) (0.47) $10.69 2.27% Year ended 7/31/07 (0.58) $10.97 8.16% - ----------------------------------------------------------------------------------- STRATEGIC INCOME INSTITUTIONAL SHARES Year ended 7/31/03 (0.55) $10.91 7.89% Year ended 7/31/04 (0.52) $11.15 7.04% Year ended 7/31/05 (0.51) $11.54 8.21% Year ended 7/31/06 (0.55) $11.28 2.61% Year ended 7/31/07 (0.66) $11.18 4.97% - ----------------------------------------------------------------------------------- STRATEGIC INCOME 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% Year ended 7/31/07 (0.64) $11.15 4.72% - ----------------------------------------------------------------------------------- STRATEGIC INCOME 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% Year ended 7/31/07 (0.55) $11.15 3.94% - ----------------------------------------------------------------------------------- STRATEGIC INCOME CLASS C SHARES 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% Year ended 7/31/07 (0.55) $11.07 3.98% - ----------------------------------------------------------------------------------- STRATEGIC INCOME ADVISOR SHARES 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% Year ended 7/31/07 (0.62) $11.14 4.55% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 16,014 0.75%** 0.08%** 2.90%** 63% Year ended 7/31/04 $ 14,201 0.58% 0.08% 2.79% 27% Year ended 7/31/05 $ 22,236 0.54% 0.08% 3.00% 46% Year ended 7/31/06 $ 24,385 0.58% 0.08% 3.72% 15% Year ended 7/31/07 $ 24,570 0.64% 0.08% 3.69% 24% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)CLASS A SHARES 8/1/02(d) to 7/31/03 $ 9,387 1.17%** 0.33%** 2.52%** 63% Year ended 7/31/04 $ 20,461 0.84% 0.33% 2.59% 27% Year ended 7/31/05 $ 20,014 0.79% 0.33% 2.76% 46% Year ended 7/31/06 $ 16,138 0.82% 0.33% 3.45% 15% Year ended 7/31/07 $ 15,083 0.89% 0.33% 3.44% 24% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)CLASS B SHARES 8/1/02(d) to 7/31/03 $ 8,795 1.86%** 1.08%** 1.75%** 63% Year ended 7/31/04 $ 13,524 1.58% 1.08% 1.80% 27% Year ended 7/31/05 $ 12,688 1.54% 1.08% 2.01% 46% Year ended 7/31/06 $ 10,208 1.57% 1.08% 2.69% 15% Year ended 7/31/07 $ 9,242 1.64% 1.07% 2.69% 24% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)CLASS C SHARES 8/1/02(d) to 7/31/03 $ 2,203 1.86%** 1.08%** 1.63%** 63% Year ended 7/31/04 $ 6,563 1.58% 1.08% 1.81% 27% Year ended 7/31/05 $ 5,304 1.54% 1.08% 2.01% 46% Year ended 7/31/06 $ 3,816 1.57% 1.08% 2.68% 15% Year ended 7/31/07 $ 3,091 1.64% 1.07% 2.67% 24% - ---------------------------------------------------------------------------------------------------------------------- LIFEMODEL CONSERVATIVE(SM)ADVISOR SHARES Year ended 7/31/06 (c) $ 45 1.09% 0.58% 3.36% 15% Year ended 7/31/07 $ 47 1.14% 0.57% 3.20% 24% - ---------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME INSTITUTIONAL SHARES Year ended 7/31/03 $ 67,649 1.35% 1.35% 5.25% 38% Year ended 7/31/04 $ 90,995 1.33% 1.33% 4.64% 36% Year ended 7/31/05 $ 97,921 1.36% 1.36% 4.47% 17% Year ended 7/31/06 $ 107,130 1.34% 1.31% 4.56% 8% Year ended 7/31/07 $ 116,454 1.34% 1.06% 4.75% 18% - ---------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME CLASS A SHARES 4/1/04(d) to 7/31/04 $ 954 1.63%** 1.63%** 5.02%** 36% Year ended 7/31/05 $ 4,423 1.62% 1.62% 4.25% 17% Year ended 7/31/06 $ 4,429 1.59% 1.56% 4.30% 8% Year ended 7/31/07 $ 4,904 1.59% 1.31% 4.49% 18% - ---------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME CLASS B SHARES 4/1/04(d) to 7/31/04 $ 389 2.37%** 2.37%** 4.27%** 36% Year ended 7/31/05 $ 1,909 2.37% 2.37% 3.49% 17% Year ended 7/31/06 $ 1,588 2.34% 2.31% 3.57% 8% Year ended 7/31/07 $ 1,528 2.34% 2.05% 3.76% 18% - ---------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME CLASS C SHARES Year ended 7/31/03 $ 37,810 2.35% 2.32% 4.35% 38% Year ended 7/31/04 $ 39,298 2.33% 2.33% 3.62% 36% Year ended 7/31/05 $ 29,176 2.35% 2.35% 3.47% 17% Year ended 7/31/06 $ 20,019 2.34% 2.32% 3.53% 8% Year ended 7/31/07 $ 15,676 2.34% 2.06% 3.75% 18% - ---------------------------------------------------------------------------------------------------------------------- STRATEGIC INCOME ADVISOR SHARES Year ended 7/31/03 $ 36,345 1.88% 1.85% 4.68% 38% Year ended 7/31/04 $ 39,982 1.83% 1.83% 4.12% 36% Year ended 7/31/05 $ 32,531 1.85% 1.85% 3.96% 17% Year ended 7/31/06 $ 20,880 1.84% 1.82% 4.03% 8% Year ended 7/31/07 $ 17,126 1.85% 1.56% 4.25% 18% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 184-185 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 NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH INSTITUTIONAL SHARES +++ Year ended 7/31/03 $ 18.06 (0.12) 0.23 0.11 -- -- Year ended 7/31/04 $ 18.17 (0.19) 1.12 0.93 -- -- Year ended 7/31/05 $ 19.10 (0.15)~ 2.76 2.61 -- -- Year ended 7/31/06 $ 21.71 0.28~ 0.83 1.11 (0.26) -- Year ended 7/31/07 $ 22.56 0.57~@ 2.85 3.42 (0.48) -- - -------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS A SHARES +++ 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) -- Year ended 7/31/07 $ 22.18 0.49~@ 2.82 3.31 (0.42) -- - -------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS B SHARES +++ 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) -- Year ended 7/31/07 $ 21.53 0.31~@ 2.71 3.02 (0.24) -- - -------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS C SHARES +++ 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) -- Year ended 7/31/07 $ 20.97 0.29~@ 2.66 2.95 (0.25) -- - -------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH ADVISOR SHARES +++ Year ended 7/31/06 (c) $ 21.34 0.15~ 0.83 0.98 (0.21) -- Year ended 7/31/07 $ 22.11 0.43~@ 2.80 3.23 (0.36) -- - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- DIVIDEND GROWTH INSTITUTIONAL SHARES +++ Year ended 7/31/03 -- $18.17 0.61% Year ended 7/31/04 -- $19.10 5.12% Year ended 7/31/05 -- $21.71 13.66% Year ended 7/31/06 (0.26) $22.56 5.14% Year ended 7/31/07 (0.48) $25.50 15.22%@ - ----------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS A SHARES +++ 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% Year ended 7/31/07 (0.42) $25.07 14.97%@ - ----------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS B SHARES +++ 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% Year ended 7/31/07 (0.24) $24.31 14.11%@ - ----------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS C SHARES +++ 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% Year ended 7/31/07 (0.25) $23.67 14.12%@ - ----------------------------------------------------------------------------------- DIVIDEND GROWTH ADVISOR SHARES +++ Year ended 7/31/06 (c) (0.21) $22.11 4.59% Year ended 7/31/07 (0.36) $24.98 14.70%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH INSTITUTIONAL SHARES +++ Year ended 7/31/03 $ 14,659 1.63% 1.47% (0.67%) 50% Year ended 7/31/04 $ 7,166 1.74% 1.43% (0.68%) 81% Year ended 7/31/05 $ 5,973 1.99% 1.45% (0.73%) 28% Year ended 7/31/06 $ 15,759 2.72% 0.73% 1.25% 147% Year ended 7/31/07 $ 18,875 1.67% 0.73% 2.08% 68% - ---------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS A SHARES +++ Year ended 7/31/03 $ 8,264 1.89% 1.72% (0.92%) 50% Year ended 7/31/04 $ 9,391 2.00% 1.68% (0.98%) 81% Year ended 7/31/05 $ 7,087 2.24% 1.70% (0.98%) 28% Year ended 7/31/06 $ 4,670 2.93% 0.98% 1.08% 147% Year ended 7/31/07 $ 3,926 1.92% 0.98% 1.80% 68% - ---------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS B SHARES +++ Year ended 7/31/03 $ 350 2.63% 2.47% (1.68%) 50% Year ended 7/31/04 $ 441 2.74% 2.43% (1.74%) 81% Year ended 7/31/05 $ 311 2.97% 2.45% (1.73%) 28% Year ended 7/31/06 $ 371 3.70% 1.73% 0.27% 147% Year ended 7/31/07 $ 369 2.66% 1.73% 1.08% 68% - ---------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH CLASS C SHARES +++ Year ended 7/31/03 $ 727 2.64% 2.47% (1.67%) 50% Year ended 7/31/04 $ 580 2.75% 2.43% (1.71%) 81% Year ended 7/31/05 $ 516 3.00% 2.45% (1.73%) 28% Year ended 7/31/06 $ 389 3.71% 1.73% 0.32% 147% Year ended 7/31/07 $ 356 2.67% 1.73% 1.02% 68% - ---------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH ADVISOR SHARES +++ Year ended 7/31/06 (c) $ 13 3.35% 1.23% 0.67% 147% Year ended 7/31/07 $ 12 2.17% 1.23% 1.54% 68% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 186-187 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 INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY INSTITUTIONAL SHARES Year ended 7/31/03 $ 5.55 (0.09)~ 3.26 3.17 -- -- Year ended 7/31/04 $ 8.72 (0.11)~ (0.15) (0.26) -- -- Year ended 7/31/05 $ 8.46 (0.13)~ 1.63 1.50 -- -- Year ended 7/31/06 $ 9.96 (0.14)~ 0.24 0.10 -- -- Year ended 7/31/07 $ 10.06 (0.12)~@ 1.67 1.55 -- -- - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY CLASS A SHARES 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 -- -- Year ended 7/31/07 $ 9.91 (0.15)~@ 1.65 1.50 -- -- - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY CLASS B SHARES 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 -- -- Year ended 7/31/07 $ 9.49 (0.22)~@ 1.56 1.34 -- -- - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY CLASS C SHARES 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 -- -- Year ended 7/31/07 $ 9.46 (0.23)~@ 1.57 1.34 -- -- - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY ADVISOR SHARES 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 -- -- Year ended 7/31/07 $ 9.79 (0.17)~@ 1.61 1.44 -- -- - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- TECHNOLOGY INSTITUTIONAL SHARES Year ended 7/31/03 -- $ 8.72 57.12% Year ended 7/31/04 -- $ 8.46 (2.98%) Year ended 7/31/05 -- $ 9.96 17.73% Year ended 7/31/06 -- $10.06 1.00% Year ended 7/31/07 -- $11.61 15.41%@ - ----------------------------------------------------------------------------------- TECHNOLOGY CLASS A SHARES 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% Year ended 7/31/07 -- $11.41 15.04%@ - ----------------------------------------------------------------------------------- TECHNOLOGY CLASS B SHARES 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% Year ended 7/31/07 -- $10.83 14.12%@ - ----------------------------------------------------------------------------------- TECHNOLOGY CLASS C SHARES 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% Year ended 7/31/07 -- $10.80 14.16%@ - ----------------------------------------------------------------------------------- TECHNOLOGY ADVISOR SHARES 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% Year ended 7/31/07 -- $11.23 14.71%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE (LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- TECHNOLOGY INSTITUTIONAL SHARES Year ended 7/31/03 $ 29,573 1.87% 1.55% (1.46%) 258% Year ended 7/31/04 $ 37,573 1.55% 1.20% (1.07%) 191% Year ended 7/31/05 $ 38,941 1.63% 1.63% (1.40%) 367% Year ended 7/31/06 $ 47,523 1.51% 1.51% (1.24%) 506% Year ended 7/31/07 $ 31,507 1.55% 1.55% (1.12%) 369% - ---------------------------------------------------------------------------------------------------------------------- TECHNOLOGY CLASS A SHARES Year ended 7/31/03 $ 5,218 2.13% 1.81% (1.71%) 258% Year ended 7/31/04 $ 7,105 1.80% 1.45% (1.31%) 191% Year ended 7/31/05 $ 5,699 1.87% 1.87% (1.64%) 367% Year ended 7/31/06 $ 4,048 1.76% 1.76% (1.48%) 506% Year ended 7/31/07 $ 3,110 1.81% 1.81% (1.36%) 369% - ---------------------------------------------------------------------------------------------------------------------- TECHNOLOGY CLASS B SHARES Year ended 7/31/03 $ 1,164 2.87% 2.55% (2.45%) 258% Year ended 7/31/04 $ 1,436 2.56% 2.20% (2.06%) 191% Year ended 7/31/05 $ 1,160 2.62% 2.62% (2.39%) 367% Year ended 7/31/06 $ 935 2.51% 2.51% (2.23%) 506% Year ended 7/31/07 $ 743 2.56% 2.56% (2.10%) 369% - ---------------------------------------------------------------------------------------------------------------------- TECHNOLOGY CLASS C SHARES Year ended 7/31/03 $ 1,081 2.82% 2.47% (2.37%) 258% Year ended 7/31/04 $ 1,757 2.55% 2.20% (2.07%) 191% Year ended 7/31/05 $ 590 2.60% 2.60% (2.37%) 367% Year ended 7/31/06 $ 787 2.51% 2.51% (2.25%) 506% Year ended 7/31/07 $ 158 2.55% 2.55% (2.18%) 369% - ---------------------------------------------------------------------------------------------------------------------- TECHNOLOGY ADVISOR SHARES Year ended 7/31/03 $ 55 2.30% 1.90% (1.83%) 258% Year ended 7/31/04 $ 247 2.04% 1.71% (1.58%) 191% Year ended 7/31/05 $ 239 2.12% 2.12% (1.89%) 367% Year ended 7/31/06 $ 1,919 2.01% 2.01% (1.77%) 506% Year ended 7/31/07 $ 3,432 2.06% 2.06% (1.59%) 369% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 188-189 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 NET ASSETS VALUE, NET FROM RESULTING NET NET BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY INSTITUTIONAL SHARES Year ended 7/31/03 $ 7.65 0.06 0.12 0.18 (0.04) -- Year ended 7/31/04 $ 7.79 0.06~ 1.61 1.67 (0.14) -- Year ended 7/31/05 $ 9.32 0.13 1.54 1.67 (0.20) -- Year ended 7/31/06 $ 10.79 0.15~ 2.37 2.52 (0.20) (0.28) Year ended 7/31/07 $ 12.83 0.18~@ 2.92 3.10 (0.11) (0.27) - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS A SHARES 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) Year ended 7/31/07 $ 12.84 0.15~@ 2.92 3.07 (0.10) (0.27) - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS B SHARES 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) Year ended 7/31/07 $ 12.64 0.04~@ 2.86 2.90 (0.06) (0.27) - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS C SHARES 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) Year ended 7/31/07 $ 12.31 0.02~@ 2.81 2.83 (0.06) (0.27) - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY ADVISOR SHARES 11/10/03(d) to 7/31/04 $ 8.67 0.02~ 0.65 0.67 (0.03) -- Year ended 7/31/05 $ 9.31 0.08 1.54 1.62 (0.15) -- Year ended 7/31/06 $ 10.78 0.08~ 2.37 2.45 (0.12) (0.28) Year ended 7/31/07 $ 12.83 0.11~@ 2.92 3.03 (0.09) (0.27) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- INTERNATIONAL EQUITY INSTITUTIONAL SHARES Year ended 7/31/03 (0.04) $ 7.79 2.47% Year ended 7/31/04 (0.14) $ 9.32 21.56% Year ended 7/31/05 (0.20) $10.79 17.99% Year ended 7/31/06 (0.48) $12.83 23.86% Year ended 7/31/07 (0.38) $15.55 24.57%@ - ----------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS A SHARES 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% Year ended 7/31/07 (0.37) $15.54 24.35%@ - ----------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS B SHARES 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% Year ended 7/31/07 (0.33) $15.21 23.36%@ - ----------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS C SHARES 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% Year ended 7/31/07 (0.33) $14.81 23.40%@ - ----------------------------------------------------------------------------------- INTERNATIONAL EQUITY ADVISOR SHARES 11/10/03(d) to 7/31/04 (0.03) $ 9.31 7.70%* Year ended 7/31/05 (0.15) $10.78 17.43% Year ended 7/31/06 (0.40) $12.83 23.18% Year ended 7/31/07 (0.36) $15.50 23.94%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME/(LOSS) PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY INSTITUTIONAL SHARES Year ended 7/31/03 $ 159,160 1.45% 1.42% 0.96% 44% Year ended 7/31/04 $ 324,852 1.42% 1.36% 0.61% 50% Year ended 7/31/05 $ 282,476 1.39% 1.35% 1.15% 21% Year ended 7/31/06 $ 434,572 1.37% 1.35% 1.24% 23% Year ended 7/31/07 $ 469,183 1.36% 1.35% 1.29% 20% - ---------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS A SHARES Year ended 7/31/03 $ 5,489 1.69% 1.67% 0.88% 44% Year ended 7/31/04 $ 22,999 1.67% 1.61% 0.51% 50% Year ended 7/31/05 $ 20,509 1.64% 1.60% 0.88% 21% Year ended 7/31/06 $ 27,725 1.62% 1.60% 1.03% 23% Year ended 7/31/07 $ 21,533 1.61% 1.60% 1.06% 20% - ---------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS B SHARES Year ended 7/31/03 $ 340 2.45% 2.42% 0.01% 44% Year ended 7/31/04 $ 793 2.42% 2.36% (0.21%) 50% Year ended 7/31/05 $ 1,280 2.39% 2.35% 0.23% 21% Year ended 7/31/06 $ 2,060 2.37% 2.35% 0.32% 23% Year ended 7/31/07 $ 2,677 2.35% 2.35% 0.32% 20% - ---------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS C SHARES Year ended 7/31/03 $ 304 2.44% 2.39% 0.64% 44% Year ended 7/31/04 $ 555 2.42% 2.36% (0.22%) 50% Year ended 7/31/05 $ 962 2.39% 2.35% 0.26% 21% Year ended 7/31/06 $ 1,139 2.37% 2.35% 0.29% 23% Year ended 7/31/07 $ 878 2.35% 2.35% 0.16% 20% - ---------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY ADVISOR SHARES 11/10/03(d) to 7/31/04 $ 12,360 1.92%** 1.85%** 0.31%** 50% Year ended 7/31/05 $ 12,315 1.89% 1.85% 0.64% 21% Year ended 7/31/06 $ 9,631 1.88% 1.85% 0.68% 23% Year ended 7/31/07 $ 9,722 1.86% 1.85% 0.75% 20% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 190-191 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 INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND INSTITUTIONAL SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.44 (0.28) 0.16 (0.42) -- Year ended 7/31/07 $ 9.74 0.71~ (0.14) 0.57 (0.71) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND CLASS A SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.41 (0.27) 0.14 (0.40) -- Year ended 7/31/07 $ 9.74 0.68~ (0.13) 0.55 (0.69) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND CLASS B SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.33 (0.24) 0.09 (0.36) -- Year ended 7/31/07 $ 9.73 0.61~ (0.13) 0.48 (0.62) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND CLASS C SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.35 (0.25) 0.10 (0.36) -- Year ended 7/31/07 $ 9.74 0.60~ (0.12) 0.48 (0.62) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND ADVISOR SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.39 (0.26) 0.13 (0.39) -- Year ended 7/31/07 $ 9.74 0.66~ (0.14) 0.52 (0.66) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 9.93 0.39 0.09 0.48 (0.45) -- Year ended 7/31/04 $ 9.96 0.28 0.14 0.42 (0.36) -- Year ended 7/31/05 $ 10.02 0.34 0.10 0.44 (0.38) (0.01) Year ended 7/31/06 $ 10.07 0.42 (0.30) 0.12 (0.45) (0.06) Year ended 7/31/07 $ 9.68 0.45~@ 0.01 0.46 (0.46) -- - -------------------------------------------------------------------------------------------------------------------------------- BOND CLASS A SHARES 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) Year ended 7/31/07 $ 9.68 0.43~@ -- 0.43 (0.44) -- - -------------------------------------------------------------------------------------------------------------------------------- BOND CLASS B SHARES 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) Year ended 7/31/07 $ 9.68 0.35~@ 0.01 0.36 (0.36) -- - -------------------------------------------------------------------------------------------------------------------------------- BOND CLASS C SHARES 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) Year ended 7/31/07 $ 9.69 0.35~@ -- 0.35 (0.36) -- - -------------------------------------------------------------------------------------------------------------------------------- BOND ADVISOR SHARES 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) Year ended 7/31/07 $ 9.68 0.40~@ 0.01 0.41 (0.41) -- - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- HIGH YIELD BOND INSTITUTIONAL SHARES 11/29/05 (d) to 7/31/06 (0.42) $ 9.74 1.59%* Year ended 7/31/07 (0.74) $ 9.57 5.85% - ----------------------------------------------------------------------------------- HIGH YIELD BOND CLASS A SHARES 11/29/05 (d) to 7/31/06 (0.40) $ 9.74 1.44%* Year ended 7/31/07 (0.72) $ 9.57 5.47% - ----------------------------------------------------------------------------------- HIGH YIELD BOND CLASS B SHARES 11/29/05 (d) to 7/31/06 (0.36) $ 9.73 0.91%* Year ended 7/31/07 (0.65) $ 9.56 4.83% - ----------------------------------------------------------------------------------- HIGH YIELD BOND CLASS C SHARES 11/29/05 (d) to 7/31/06 (0.36) $ 9.74 0.94%* Year ended 7/31/07 (0.65) $ 9.57 4.72% - ----------------------------------------------------------------------------------- HIGH YIELD BOND ADVISOR SHARES 11/29/05 (d) to 7/31/06 (0.39) $ 9.74 1.26%* Year ended 7/31/07 (0.69) $ 9.57 5.34% - ----------------------------------------------------------------------------------- BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.45) $ 9.96 4.79% Year ended 7/31/04 (0.36) $10.02 4.26% Year ended 7/31/05 (0.39) $10.07 4.43% Year ended 7/31/06 (0.51) $ 9.68 1.21% Year ended 7/31/07 (0.46) $ 9.68 4.83%@ - ----------------------------------------------------------------------------------- BOND CLASS A SHARES 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% Year ended 7/31/07 (0.44) $ 9.67 4.45%@ - ----------------------------------------------------------------------------------- BOND CLASS B SHARES 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% Year ended 7/31/07 (0.36) $ 9.68 3.75%@ - ----------------------------------------------------------------------------------- BOND CLASS C SHARES 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% Year ended 7/31/07 (0.36) $ 9.68 3.65%@ - ----------------------------------------------------------------------------------- BOND ADVISOR SHARES 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% Year ended 7/31/07 (0.41) $ 9.68 4.29%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000'S) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND INSTITUTIONAL SHARES 11/29/05 (d) to 7/31/06 $ 66,033 1.15%** 0.74%** 6.77%** 41% Year ended 7/31/07 $ 68,193 1.14% 0.74% 7.12% 42% - ---------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND CLASS A SHARES 11/29/05 (d) to 7/31/06 $ 227 2.98%** 0.99%** 6.74%** 41% Year ended 7/31/07 $ 175 1.39% 0.99% 6.83% 42% - ---------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND CLASS B SHARES 11/29/05 (d) to 7/31/06 $ 96 7.16%** 1.74%** 5.98%** 41% Year ended 7/31/07 $ 156 2.15% 1.74% 6.12% 42% - ---------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND CLASS C SHARES 11/29/05 (d) to 7/31/06 $ 55 8.04%** 1.74%** 5.93%** 41% Year ended 7/31/07 $ 127 2.15% 1.74% 6.04% 42% - ---------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND ADVISOR SHARES 11/29/05 (d) to 7/31/06 $ 10 24.09%** 1.24%** 5.98%** 41% Year ended 7/31/07 $ 14 1.64% 1.24% 6.58% 42% - ---------------------------------------------------------------------------------------------------------------------- BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 303,450 0.89% 0.80% 3.86% 332% Year ended 7/31/04 $ 277,706 0.90% 0.79% 2.75% 389% Year ended 7/31/05 $ 292,043 0.91% 0.78% 3.28% 385% Year ended 7/31/06 $ 252,145 0.90% 0.74% 4.23% 352% Year ended 7/31/07 $ 230,154 0.91% 0.72% 4.57% 65% - ---------------------------------------------------------------------------------------------------------------------- BOND CLASS A SHARES Year ended 7/31/03 $ 20,572 1.14% 1.05% 3.57% 332% Year ended 7/31/04 $ 22,559 1.15% 1.04% 2.51% 389% Year ended 7/31/05 $ 15,876 1.16% 1.03% 3.01% 385% Year ended 7/31/06 $ 11,657 1.15% 0.99% 3.97% 352% Year ended 7/31/07 $ 8,223 1.16% 0.97% 4.32% 65% - ---------------------------------------------------------------------------------------------------------------------- BOND CLASS B SHARES Year ended 7/31/03 $ 7,418 1.89% 1.80% 2.81% 332% Year ended 7/31/04 $ 4,512 1.90% 1.79% 1.76% 389% Year ended 7/31/05 $ 3,907 1.91% 1.78% 2.27% 385% Year ended 7/31/06 $ 2,655 1.91% 1.74% 3.20% 352% Year ended 7/31/07 $ 2,151 1.91% 1.72% 3.57% 65% - ---------------------------------------------------------------------------------------------------------------------- BOND CLASS C SHARES Year ended 7/31/03 $ 1,246 1.89% 1.80% 2.79% 332% Year ended 7/31/04 $ 768 1.90% 1.79% 1.76% 389% Year ended 7/31/05 $ 649 1.91% 1.78% 2.26% 385% Year ended 7/31/06 $ 315 1.91% 1.74% 3.16% 352% Year ended 7/31/07 $ 225 1.90% 1.72% 3.57% 65% - ---------------------------------------------------------------------------------------------------------------------- BOND ADVISOR SHARES Year ended 7/31/03 $ 737 1.39% 1.30% 3.34% 332% Year ended 7/31/04 $ 655 1.40% 1.29% 2.25% 389% Year ended 7/31/05 $ 622 1.41% 1.28% 2.77% 385% Year ended 7/31/06 $ 260 1.40% 1.24% 3.65% 352% Year ended 7/31/07 $ 232 1.41% 1.22% 4.08% 65% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 192-193 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 INVESTMENTS FROM INVESTMENT PAID-IN REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 9.98 0.38 0.10 0.48 (0.42) -- -- Year ended 7/31/04 $ 10.04 0.31 (0.04) 0.27 (0.38) -- -- Year ended 7/31/05 $ 9.93 0.37 (0.08) 0.29 (0.42) -- -- Year ended 7/31/06 $ 9.80 0.43~ (0.27) 0.16 (0.45) -- -- Year ended 7/31/07 $ 9.51 0.47~@ 0.02 0.49 (0.47) --^ -- - ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND CLASS A SHARES 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) -- -- Year ended 7/31/07 $ 9.54 0.44~@ 0.03 0.47 (0.45) --^ -- - ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND CLASS B SHARES 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) -- -- Year ended 7/31/07 $ 9.49 0.44~@ 0.02 0.46 (0.45) --^ -- - ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND CLASS C SHARES 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) -- -- Year ended 7/31/07 $ 9.51 0.37~@ 0.02 0.39 (0.37) --^ -- - ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND ADVISOR SHARES Year ended 7/31/06 (c) $ 9.80 0.39~ (0.28) 0.11 (0.40) -- -- Year ended 7/31/07 $ 9.51 0.42~@ 0.01 0.43 (0.42) --^ -- - ------------------------------------------------------------------------------------------------------------------------------------ NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- INTERMEDIATE BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.42) $10.04 4.77% Year ended 7/31/04 (0.38) $ 9.93 2.71% Year ended 7/31/05 (0.42) $ 9.80 2.85% Year ended 7/31/06 (0.45) $ 9.51 1.65% Year ended 7/31/07 (0.47) $ 9.53 5.23%@ - ----------------------------------------------------------------------------------- INTERMEDIATE BOND CLASS A SHARES 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% Year ended 7/31/07 (0.45) $ 9.56 4.95%@ - ----------------------------------------------------------------------------------- INTERMEDIATE BOND CLASS B SHARES 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% Year ended 7/31/07 (0.45) $ 9.50 4.77%@ - ----------------------------------------------------------------------------------- INTERMEDIATE BOND CLASS C SHARES 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% Year ended 7/31/07 (0.37) $ 9.53 4.16%@ - ----------------------------------------------------------------------------------- INTERMEDIATE BOND ADVISOR SHARES Year ended 7/31/06 (c) (0.40) $ 9.51 1.17% Year ended 7/31/07 (0.42) $ 9.52 4.64%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 772,536 0.81% 0.76% 3.72% 252% Year ended 7/31/04 $ 676,344 0.81% 0.76% 3.13% 189% Year ended 7/31/05 $ 544,101 0.82% 0.76% 3.69% 104% Year ended 7/31/06 $ 440,962 0.83% 0.72% 4.42% 154% Year ended 7/31/07 $ 484,463 0.84% 0.70% 4.81% 188% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND CLASS A SHARES Year ended 7/31/03 $ 36,471 1.06% 1.01% 3.45% 252% Year ended 7/31/04 $ 37,500 1.07% 1.01% 2.88% 189% Year ended 7/31/05 $ 29,798 1.07% 1.01% 3.43% 104% Year ended 7/31/06 $ 23,075 1.08% 0.97% 4.17% 154% Year ended 7/31/07 $ 17,371 1.09% 0.95% 4.56% 188% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND CLASS B SHARES Year ended 7/31/03 $ 5,564 1.81% 1.76% 2.64% 252% Year ended 7/31/04 $ 3,982 1.81% 1.46% 2.42% 189% Year ended 7/31/05 $ 3,316 1.82% 1.01% 3.44% 104% Year ended 7/31/06 $ 2,232 1.83% 0.97% 4.16% 154% Year ended 7/31/07 $ 1,900 1.84% 0.95% 4.56% 188% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND CLASS C SHARES Year ended 7/31/03 $ 2,319 1.81% 1.76% 2.59% 252% Year ended 7/31/04 $ 1,620 1.81% 1.76% 2.12% 189% Year ended 7/31/05 $ 1,096 1.82% 1.76% 2.67% 104% Year ended 7/31/06 $ 741 1.83% 1.72% 3.41% 154% Year ended 7/31/07 $ 457 1.84% 1.70% 3.82% 188% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND ADVISOR SHARES Year ended 7/31/06 (c) $ 13 1.29% 1.20% 4.10% 154% Year ended 7/31/07 $ 103 1.34% 1.20% 4.30% 188% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 194-195 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 INVESTMENTS FROM INVESTMENT PAID-IN REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 9.82 0.28 0.03 0.31 (0.38) -- -- Year ended 7/31/04 $ 9.75 0.19~ (0.06) 0.13 (0.31) -- -- Year ended 7/31/05 $ 9.57 0.20 (0.08) 0.12 (0.32) -- -- Year ended 7/31/06 $ 9.37 0.31 (0.06) 0.25 (0.37) -- -- Year ended 7/31/07 $ 9.25 0.37~ 0.09 0.46 (0.38) (0.01) -- - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND CLASS A SHARES 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) -- -- Year ended 7/31/07 $ 9.25 0.35~ 0.08 0.43 (0.36) (0.01) -- - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND 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) -- -- Year ended 7/31/07 $ 9.25 0.28~ 0.09 0.37 (0.29) (0.01) -- - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.42 0.30 0.03 0.33 (0.30) -- (0.16) Year ended 7/31/04 $ 10.29 0.25 --^ 0.25 (0.26) -- (0.16) Year ended 7/31/05 $ 10.12 0.30 (0.06) 0.24 (0.28) -- -- Year ended 7/31/06 $ 10.08 0.38 (0.19) 0.19 (0.35) -- (0.03) Year ended 7/31/07 $ 9.89 0.45~@ 0.05 0.50 (0.40) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND CLASS A SHARES 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) Year ended 7/31/07 $ 9.90 0.42~@ 0.04 0.46 (0.37) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND CLASS C SHARES 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) Year ended 7/31/07 $ 9.82 0.34~@ 0.05 0.39 (0.29) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- SHORT TERM BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.38) $ 9.75 3.23% Year ended 7/31/04 (0.31) $ 9.57 1.31% Year ended 7/31/05 (0.32) $ 9.37 1.16% Year ended 7/31/06 (0.37) $ 9.25 2.75% Year ended 7/31/07 (0.39) $ 9.32 5.08% - ----------------------------------------------------------------------------------- SHORT TERM BOND CLASS A SHARES 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% Year ended 7/31/07 (0.37) $ 9.31 4.70% - ----------------------------------------------------------------------------------- SHORT TERM BOND 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% Year ended 7/31/07 (0.30) $ 9.32 3.93% - ----------------------------------------------------------------------------------- U.S. GOVERNMENT BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.46) $10.29 3.19% Year ended 7/31/04 (0.42) $10.12 2.42% Year ended 7/31/05 (0.28) $10.08 2.39% Year ended 7/31/06 (0.38) $ 9.89 1.91% Year ended 7/31/07 (0.40) $ 9.99 5.07%@ - ----------------------------------------------------------------------------------- U.S. GOVERNMENT BOND CLASS A SHARES 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% Year ended 7/31/07 (0.37) $ 9.99 4.71%@ - ----------------------------------------------------------------------------------- U.S. GOVERNMENT BOND CLASS C SHARES 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% Year ended 7/31/07 (0.29) $ 9.92 4.05%@ - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 490,229 0.76% 0.74% 2.59% 72% Year ended 7/31/04 $ 495,271 0.77% 0.74% 1.96% 90% Year ended 7/31/05 $ 333,909 0.77% 0.73% 2.35% 68% Year ended 7/31/06 $ 258,423 0.78% 0.67% 3.33% 53% Year ended 7/31/07 $ 267,348 0.80% 0.64% 3.99% 75% - ---------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND CLASS A SHARES Year ended 7/31/03 $ 33,975 1.01% 0.89% 2.39% 72% Year ended 7/31/04 $ 28,262 1.02% 0.89% 1.81% 90% Year ended 7/31/05 $ 17,117 1.02% 0.98% 2.10% 68% Year ended 7/31/06 $ 12,362 1.03% 0.92% 3.07% 53% Year ended 7/31/07 $ 9,704 1.05% 0.89% 3.72% 75% - ---------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND CLASS C SHARES 8/1/03(d) to 7/31/04 $ 526 1.77%** 1.74%** 0.97%** 90% Year ended 7/31/05 $ 362 1.77% 1.73% 1.34% 68% Year ended 7/31/06 $ 205 1.79% 1.67% 2.31% 53% Year ended 7/31/07 $ 160 1.81% 1.64% 2.97% 75% - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 50,649 0.92% 0.81% 2.88% 304% Year ended 7/31/04 $ 43,820 0.91% 0.76% 2.35% 180% Year ended 7/31/05 $ 33,246 0.97% 0.82% 2.91% 159% Year ended 7/31/06 $ 29,005 0.98% 0.73% 3.88% 103% Year ended 7/31/07 $ 25,092 1.05% 0.69% 4.37% 20% - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND CLASS A SHARES Year ended 7/31/03 $ 11,413 1.17% 1.06% 2.61% 304% Year ended 7/31/04 $ 31,146 1.16% 1.01% 2.10% 180% Year ended 7/31/05 $ 27,214 1.22% 1.07% 2.67% 159% Year ended 7/31/06 $ 23,702 1.23% 0.98% 3.63% 103% Year ended 7/31/07 $ 4,068 1.30% 0.94% 4.12% 20% - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND CLASS C SHARES Year ended 7/31/03 $ 10,006 1.91% 1.80% 1.77% 304% Year ended 7/31/04 $ 4,255 1.91% 1.77% 1.34% 180% Year ended 7/31/05 $ 2,844 1.97% 1.82% 1.91% 159% Year ended 7/31/06 $ 1,767 1.98% 1.73% 2.87% 103% Year ended 7/31/07 $ 1,230 2.05% 1.69% 3.34% 20% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 196-197 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 INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.74 0.43~ (0.09) 0.34 (0.43) (0.16) Year ended 7/31/04 $ 10.49 0.43~ 0.08 0.51 (0.43) (0.17) Year ended 7/31/05 $ 10.40 0.40 0.06 0.46 (0.40) (0.39) Year ended 7/31/06 $ 10.07 0.37 (0.23) 0.14 (0.37) (0.44) Year ended 7/31/07 $ 9.40 0.39~@ -- 0.39 (0.37) (0.10) - -------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND CLASS A SHARES 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) Year ended 7/31/07 $ 9.45 0.36~@ (0.01) 0.35 (0.34) (0.10) - -------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND CLASS B SHARES 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) Year ended 7/31/07 $ 9.37 0.29~@ -- 0.29 (0.27) (0.10) - -------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND CLASS C SHARES 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) Year ended 7/31/07 $ 9.39 0.29~@ -- 0.29 (0.26) (0.10) - -------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND ADVISOR SHARES 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) Year ended 7/31/07 $ 9.40 0.34~@ (0.01) 0.33 (0.32) (0.10) - -------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.79 0.37~ (0.09) 0.28 (0.36) (0.07) Year ended 7/31/04 $ 10.64 0.37 (0.03) 0.34 (0.36) (0.09) Year ended 7/31/05 $ 10.53 0.37 (0.07) 0.30 (0.42) (0.08) Year ended 7/31/06 $ 10.33 0.36~ (0.21) 0.15 (0.36) (0.13) Year ended 7/31/07 $ 9.99 0.36~ (0.01) 0.35 (0.36) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS A SHARES 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) Year ended 7/31/07 $ 10.00 0.34~ (0.02) 0.32 (0.34) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS B SHARES 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) Year ended 7/31/07 $ 9.98 0.34~ (0.01) 0.33 (0.34) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS C SHARES 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) Year ended 7/31/07 $ 9.99 0.27~ (0.02) 0.25 (0.26) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.59) $10.49 3.18% Year ended 7/31/04 (0.60) $10.40 4.84% Year ended 7/31/05 (0.79) $10.07 4.53% Year ended 7/31/06 (0.81) $ 9.40 1.49% Year ended 7/31/07 (0.47) $ 9.32 4.04%@ - ----------------------------------------------------------------------------------- MUNICIPAL BOND CLASS A SHARES 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% Year ended 7/31/07 (0.44) $ 9.36 3.76%@ - ----------------------------------------------------------------------------------- MUNICIPAL BOND CLASS B SHARES 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% Year ended 7/31/07 (0.37) $ 9.29 2.98%@ - ----------------------------------------------------------------------------------- MUNICIPAL BOND CLASS C SHARES 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% Year ended 7/31/07 (0.36) $ 9.32 3.04%@ - ----------------------------------------------------------------------------------- MUNICIPAL BOND ADVISOR SHARES 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% Year ended 7/31/07 (0.42) $ 9.31 3.51%@ - ----------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.43) $10.64 2.64% Year ended 7/31/04 (0.45) $10.53 3.27% Year ended 7/31/05 (0.50) $10.33 2.83% Year ended 7/31/06 (0.49) $ 9.99 1.43% Year ended 7/31/07 (0.39) $ 9.95 3.59% - ----------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS A SHARES 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% Year ended 7/31/07 (0.37) $ 9.95 3.23% - ----------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS B SHARES 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% Year ended 7/31/07 (0.37) $ 9.94 3.34% - ----------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS C SHARES 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% Year ended 7/31/07 (0.29) $ 9.95 2.55% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 74,347 0.93% 0.79% 3.98% 21% Year ended 7/31/04 $ 57,638 0.98% 0.79% 4.05% 35% Year ended 7/31/05 $ 49,802 1.04% 0.78% 3.86% 83% Year ended 7/31/06 $ 39,514 1.06% 0.65% 3.87% 87% Year ended 7/31/07 $ 44,234 1.13% 0.61% 3.87% 27% - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND CLASS A SHARES Year ended 7/31/03 $ 1,906 1.18% 1.04% 3.71% 21% Year ended 7/31/04 $ 2,462 1.24% 1.04% 3.81% 35% Year ended 7/31/05 $ 1,637 1.29% 1.03% 3.63% 83% Year ended 7/31/06 $ 1,378 1.31% 0.90% 3.62% 87% Year ended 7/31/07 $ 1,231 1.38% 0.86% 3.63% 27% - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND CLASS B SHARES Year ended 7/31/03 $ 1,205 1.92% 1.79% 2.97% 21% Year ended 7/31/04 $ 1,528 1.99% 1.79% 3.06% 35% Year ended 7/31/05 $ 1,479 2.04% 1.78% 2.85% 83% Year ended 7/31/06 $ 1,016 2.06% 1.66% 2.86% 87% Year ended 7/31/07 $ 864 2.13% 1.61% 2.88% 27% - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND CLASS C SHARES Year ended 7/31/03 $ 548 1.93% 1.79% 2.98% 21% Year ended 7/31/04 $ 363 1.98% 1.79% 3.05% 35% Year ended 7/31/05 $ 179 2.03% 1.78% 2.91% 83% Year ended 7/31/06 $ 87 2.06% 1.66% 2.86% 87% Year ended 7/31/07 $ 43 2.12% 1.61% 2.89% 27% - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND ADVISOR SHARES Year ended 7/31/03 $ 382 1.43% 1.29% 3.47% 21% Year ended 7/31/04 $ 433 1.49% 1.29% 3.56% 35% Year ended 7/31/05 $ 378 1.54% 1.28% 3.36% 83% Year ended 7/31/06 $ 174 1.55% 1.16% 3.36% 87% Year ended 7/31/07 $ 172 1.63% 1.11% 3.38% 27% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 304,754 0.83% 0.73% 3.36% 85% Year ended 7/31/04 $ 255,026 0.84% 0.73% 3.42% 84% Year ended 7/31/05 $ 205,078 0.86% 0.70% 3.45% 60% Year ended 7/31/06 $ 164,537 0.87% 0.71% 3.53% 60% Year ended 7/31/07 $ 149,016 0.89% 0.68% 3.63% 37% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS A SHARES Year ended 7/31/03 $ 4,317 1.08% 0.98% 3.10% 85% Year ended 7/31/04 $ 4,479 1.09% 0.98% 3.17% 84% Year ended 7/31/05 $ 3,064 1.10% 0.95% 3.20% 60% Year ended 7/31/06 $ 2,559 1.12% 0.96% 3.28% 60% Year ended 7/31/07 $ 2,038 1.15% 0.94% 3.37% 37% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS B SHARES Year ended 7/31/03 $ 1,066 1.83% 1.73% 2.35% 85% Year ended 7/31/04 $ 1,269 1.84% 1.44% 2.71% 84% Year ended 7/31/05 $ 987 1.86% 0.95% 3.20% 60% Year ended 7/31/06 $ 446 1.87% 0.96% 3.27% 60% Year ended 7/31/07 $ 358 1.90% 0.94% 3.37% 37% - ---------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND CLASS C SHARES Year ended 7/31/03 $ 973 1.83% 1.73% 2.35% 85% Year ended 7/31/04 $ 366 1.83% 1.73% 2.42% 84% Year ended 7/31/05 $ 157 1.85% 1.69% 2.45% 60% Year ended 7/31/06 $ 89 1.87% 1.71% 2.52% 60% Year ended 7/31/07 $ 101 1.89% 1.67% 2.64% 37% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 198-199 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 INVESTMENTS FROM INVESTMENT REALIZED OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS - -------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.48 0.37 (0.09) 0.28 (0.37) -- Year ended 7/31/04 $ 10.39 0.36 0.02 0.38 (0.35) (0.03) Year ended 7/31/05 $ 10.39 0.36 (0.09) 0.27 (0.35) (0.07) Year ended 7/31/06 $ 10.24 0.36~ (0.21) 0.15 (0.36) (0.03) Year ended 7/31/07 $ 10.00 0.37~@ (0.04) 0.33 (0.35) (0.01) - -------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS A SHARES 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) Year ended 7/31/07 $ 10.01 0.34~@ (0.04) 0.30 (0.32) (0.01) - -------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS B SHARES 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) Year ended 7/31/07 $ 9.78 0.26~@ (0.03) 0.23 (0.25) (0.01) - -------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS C SHARES 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) Year ended 7/31/07 $ 9.97 0.26~@ (0.03) 0.23 (0.25) (0.01) - -------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 10.39 0.31 (0.05) 0.26 (0.31) (0.03) Year ended 7/31/04 $ 10.31 0.28 (0.13) 0.15 (0.28) (0.01) Year ended 7/31/05 $ 10.17 0.28 (0.13) 0.15 (0.28) (0.01) Year ended 7/31/06 $ 10.03 0.28 (0.15) 0.13 (0.28) -- Year ended 7/31/07 $ 9.88 0.30~ 0.02 0.32 (0.30) -- - -------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS A SHARES 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) -- Year ended 7/31/07 $ 9.87 0.28~ 0.02 0.30 (0.29) -- - -------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS B SHARES 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) -- Year ended 7/31/07 $ 9.88 0.20~ -- 0.20 (0.20) -- - -------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS C SHARES 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) -- Year ended 7/31/07 $ 9.88 0.20~ 0.01 0.21 (0.20) -- - -------------------------------------------------------------------------------------------------------------------------------- NET TOTAL TOTAL ASSET RETURN DIVIDENDS VALUE, (EXCLUDES AND END OF SALES DISTRIBUTIONS PERIOD CHARGE) - ----------------------------------------------------------------------------------- OHIO MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.37) $10.39 2.65% Year ended 7/31/04 (0.38) $10.39 3.66% Year ended 7/31/05 (0.42) $10.24 2.61% Year ended 7/31/06 (0.39) $10.00 1.46% Year ended 7/31/07 (0.36) $ 9.97 3.32%@ - ----------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS A SHARES 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% Year ended 7/31/07 (0.33) $ 9.98 3.06%@ - ----------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS B SHARES 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% Year ended 7/31/07 (0.26) $ 9.75 2.26%@ - ----------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS C SHARES 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% Year ended 7/31/07 (0.26) $ 9.94 2.19%@ - ----------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 (0.34) $10.31 2.70% Year ended 7/31/04 (0.29) $10.17 1.43% Year ended 7/31/05 (0.29) $10.03 1.49% Year ended 7/31/06 (0.28) $ 9.88 1.35% Year ended 7/31/07 (0.30) $ 9.90 3.17% - ----------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS A SHARES 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% Year ended 7/31/07 (0.29) $ 9.88 3.05% - ----------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS B SHARES 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% Year ended 7/31/07 (0.20) $ 9.88 2.06% - ----------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS C SHARES 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% Year ended 7/31/07 (0.20) $ 9.89 2.16% - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES EXPENSES RATIOS OF NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PORTFOLIO PERIOD NET NET TO AVERAGE TURNOVER (000's) ASSETS (a) ASSETS (b) NET ASSETS RATE (e) - ---------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 151,478 0.85% 0.77% 3.49% 20% Year ended 7/31/04 $ 126,343 0.86% 0.78% 3.39% 15% Year ended 7/31/05 $ 104,554 0.87% 0.79% 3.37% 19% Year ended 7/31/06 $ 85,716 0.90% 0.80% 3.54% 25% Year ended 7/31/07 $ 81,780 0.93% 0.79% 3.50% 12% - ---------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS A SHARES Year ended 7/31/03 $ 25,177 1.10% 1.02% 3.23% 20% Year ended 7/31/04 $ 26,962 1.11% 1.03% 3.14% 15% Year ended 7/31/05 $ 27,870 1.12% 1.04% 3.13% 19% Year ended 7/31/06 $ 23,032 1.15% 1.05% 3.29% 25% Year ended 7/31/07 $ 15,451 1.18% 1.04% 3.25% 12% - ---------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS B SHARES Year ended 7/31/03 $ 5,101 1.84% 1.76% 2.48% 20% Year ended 7/31/04 $ 4,714 1.86% 1.78% 2.39% 15% Year ended 7/31/05 $ 4,279 1.87% 1.79% 2.37% 19% Year ended 7/31/06 $ 3,426 1.90% 1.80% 2.54% 25% Year ended 7/31/07 $ 2,682 1.93% 1.79% 2.50% 12% - ---------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND CLASS C SHARES Year ended 7/31/03 $ 6,395 1.85% 1.77% 2.48% 20% Year ended 7/31/04 $ 4,328 1.86% 1.78% 2.39% 15% Year ended 7/31/05 $ 3,820 1.87% 1.79% 2.37% 19% Year ended 7/31/06 $ 1,217 1.90% 1.80% 2.50% 25% Year ended 7/31/07 $ 734 1.93% 1.79% 2.50% 12% - ---------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND INSTITUTIONAL SHARES Year ended 7/31/03 $ 118,867 0.77% 0.69% 3.02% 12% Year ended 7/31/04 $ 105,361 0.78% 0.69% 2.75% 21% Year ended 7/31/05 $ 74,099 0.80% 0.68% 2.70% 11% Year ended 7/31/06 $ 50,670 0.88% 0.68% 2.84% 12% Year ended 7/31/07 $ 43,905 0.98% 0.68% 3.00% 28% - ---------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS A SHARES Year ended 7/31/03 $ 8,006 1.02% 0.84% 2.84% 12% Year ended 7/31/04 $ 7,294 1.03% 0.84% 2.60% 21% Year ended 7/31/05 $ 4,713 1.05% 0.83% 2.55% 11% Year ended 7/31/06 $ 4,728 1.13% 0.83% 2.70% 12% Year ended 7/31/07 $ 4,511 1.22% 0.83% 2.85% 28% - ---------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS B SHARES Year ended 7/31/03 $ 2,010 1.76% 1.69% 1.95% 12% Year ended 7/31/04 $ 1,574 1.78% 1.69% 1.76% 21% Year ended 7/31/05 $ 1,175 1.80% 1.68% 1.71% 11% Year ended 7/31/06 $ 607 1.88% 1.68% 1.83% 12% Year ended 7/31/07 $ 568 1.98% 1.68% 2.00% 28% - ---------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND CLASS C SHARES Year ended 7/31/03 $ 3,967 1.77% 1.69% 1.97% 12% Year ended 7/31/04 $ 1,794 1.78% 1.69% 1.76% 21% Year ended 7/31/05 $ 449 1.80% 1.68% 1.69% 11% Year ended 7/31/06 $ 196 1.88% 1.68% 1.83% 12% Year ended 7/31/07 $ 145 1.98% 1.68% 2.00% 28% - ---------------------------------------------------------------------------------------------------------------------- SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. Spread 200-201 FIFTH THIRD FUNDS NOTES TO FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (a) Before waivers and reimbursements. (b) Net of waivers and reimbursements. (c) Commencement of operations was August 1, 2005. (d) Reflects date of commencement of operations. (e) Portfolio turnover is calculated on the basis of the Fund as whole without distinguishing between the classes of shares issued. ^ Amount is less than $0.005 per share. + Formerly the Large Cap Core Fund. * Not annualized. ** Annualized. # Represents income or gains/(losses) from affiliates. ~ Average shares method used in calculation. ++ Includes dividend expense for securities sold short. Dividend expense was less than 0.005% for the year ended July 31, 2007. @ During the year ended July 31, 2007, the Advisor paid money to certain Funds related to an SEC investigation of BISYS Fund Services, a former service provider to the Funds. See Note 3 in Notes to Financial Statements for further information. The payment is reported as INCREASE FROM PAYMENT BY THE ADVISOR in the Statements of Operations. See additional information below regarding per share impacts and total return for the year ended July 31, 2007 had this payment not occurred. AMOUNT PER SHARE FOR PAYMENT TOTAL RETURN EXCLUDING PAYMENT BY THE ADVISOR (EXCLUDES SALES CHARGE) BY THE ADVISOR & --------------------------------------------------------------------- ----------------- INSTITUTIONAL CLASS A CLASS B CLASS C ADVISOR ALL CLASSES ------------- ------- ------- ------- ------- ----------- Mid Cap Growth 17.24% 16.93% 16.06% 16.07% 16.65% $0.01 Quality Growth 20.38% 20.05% 19.15% 19.15% 19.72% $0.02 Balanced 11.92% 11.69% 10.90% 10.84% 11.35% $0.04 Disciplined Large Cap Value 14.44% 14.13% 13.38% 13.34% 13.90% $ -- ^ Dividend Growth 14.90% 14.64% 13.78% 13.79% 14.37% $0.07 Technology 15.31% 15.04% 14.01% 14.06% 14.61% $0.01 International Equity 24.57% 24.27% 23.36% 23.31% 23.94% $ -- ^ Bond 4.72% 4.45% 3.75% 3.65% 4.29% $0.01 Intermediate Bond 5.23% 4.95% 4.77% 4.16% 4.64% $ -- ^ U.S. Government Bond 4.97% 4.61% NA 3.94% NA $0.01 Municipal Bond 3.81% 3.53% 2.76% 2.82% 3.29% $0.02 Ohio Municipal 3.22% 2.86% 2.15% 2.09% NA $0.01 ^ Amount is less than $.005. & Per share impact of the Payment by the Advisor was recognized by all classes on July 30, 2007. Calculation is based on outstanding shares as of July 30, 2007. Net Investment Income/(Loss) in these Financial Highlights includes the Payment by the Advisor. SEE NOTES TO FINANCIAL STATEMENTS. 202 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 2007 - -------------------------------------------------------------------------------- (1) ORGANIZATION Fifth Third Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company established as a Massachusetts business trust. The Trust consists of thirty-six separate investment portfolios, one of which has not commenced investment operations. The accompanying financial statements and notes relate only to the following investment portfolios of the Trust (individually a "Fund" and collectively the "Funds"). Each Fund is diversified except for Fifth Third Dividend Growth Fund and Fifth Third Ohio Municipal Bond Fund, which are non-diversified. Dollar amounts are in thousands unless otherwise indicated. PORTFOLIO NAME Fifth Third Small Cap Growth Fund ("Small Cap Growth") Fifth Third Mid Cap Growth Fund ("Mid Cap Growth") Fifth Third Quality Growth Fund ("Quality Growth") Fifth Third Structured Large Cap Plus Fund, formerly known as Fifth Third Large Cap Core Fund, ("Structured Large Cap Plus") Fifth Third Equity Index Fund ("Equity Index") Fifth Third Balanced Fund ("Balanced") Fifth Third Micro Cap Value Fund ("Micro Cap Value") Fifth Third Small Cap Value Fund ("Small Cap Value") Fifth Third Multi Cap Value Fund ("Multi Cap Value") Fifth Third Disciplined Large Cap Value Fund ("Disciplined Large Cap Value") Fifth Third LifeModel Aggressive Fund(SM)("LifeModel Aggressive SM") Fifth Third LifeModel Moderately Aggressive Fund(SM)("LifeModel Moderately Aggressive SM") Fifth Third LifeModel Moderate Fund(SM)("LifeModel Moderate SM") Fifth Third LifeModel Moderately Conservative Fund(SM)("LifeModel Moderately Conservative SM") Fifth Third LifeModel Conservative Fund(SM)("LifeModel Conservative SM"), (the foregoing five funds collectively the "LifeModel Funds SM") Fifth Third Strategic Income Fund ("Strategic Income") Fifth Third Dividend Growth Fund ("Dividend Growth") Fifth Third Technology Fund ("Technology") Fifth Third International Equity Fund ("International Equity") Fifth Third High Yield Bond Fund ("High Yield Bond") Fifth Third Bond Fund ("Bond") Fifth Third Intermediate Bond Fund ("Intermediate Bond") Fifth Third Short Term Bond Fund ("Short Term Bond") Fifth Third U.S. Government Bond Fund ("U.S. Government Bond") Fifth Third Municipal Bond Fund ("Municipal Bond") Fifth Third Intermediate Municipal Bond Fund ("Intermediate Municipal Bond") Fifth Third Ohio Municipal Bond Fund ("Ohio Municipal Bond") Fifth Third Michigan Municipal Bond Fund ("Michigan Municipal Bond") Short Term Bond and U.S. Government Bond Fund each have three classes of shares: Institutional, Class A, and Class C Shares; the Advisor Shares of these Funds were liquidated on May 11, 2007; therefore, no Financial Highlights information is presented for these liquidated classes. Equity Index has eight classes of shares: Institutional, Class A, Class B, Class C, Advisor, Select, Preferred and Trust Shares. The remainder of the Funds each have five classes of shares: Institutional, Class A, Class B, Class C and Advisor Shares, except that the Advisor Shares of Ohio Municipal Bond, Intermediate Municipal Bond and Michigan Municipal Bond were 203 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- liquidated May 11, 2007; therefore, no Financial Highlights information is presented for these liquidated classes. All Funds' Class B shares are closed for purchases at July 31, 2007. Class A and Advisor Shares are subject to initial sales charges imposed at the time of purchase, in accordance with the Funds' prospectus. Certain redemptions each of Class A Shares made within eighteen months of purchase, Class B Shares made within six years of purchase and Class C Shares made within one year of purchase are subject to contingent deferred sales charges in accordance with the Funds' prospectus. Each class of shares for each Fund has identical rights and privileges except with respect to administrative services fees paid by Class C, Select, Preferred and Trust Shares, distribution services fees paid by Class A, Class B, Class C and Advisor Shares, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnification. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as, the reported amounts of increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. SECURITIES VALUATIONS--Portfolio securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including American Depositary Receipts ("ADR"), are valued at the closing price on the exchange or system where the security is principally traded. If there have been no sales for that day on any exchange or system, a security is valued at the mean between the closing bid and asked quotes on the exchange or system where the security is principally traded, or at the NASDAQ Official Closing Price ("NOCP"), if applicable. Securities in International Equity listed or traded on non-domestic exchanges are valued at the closing price on the exchanges on which they trade. Corporate debt securities and debt securities of U.S. issuers (other than short-term investments maturing in 60 days or less), including municipal securities, are valued at fair value on the basis of the closing bid as supplied by an independent pricing service approved by the Board of Trustees ("Trustees") or valuations provided by dealers. Short-term investments maturing in 60 days or less are valued at either amortized cost, which approximates market value or at original cost, which combined with accrued interest approximates market value. Investments in open-end investment companies are valued at net asset value as reported by such investment companies. Investments for which such quotations are not readily available, or quotations which appear suspect, are valued at fair value as determined in good faith by the Pricing Committee under the direction of the Trustees. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Funds' net asset values are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, International Equity may use a systematic valuation model provided by an independent third party to value its foreign securities. When International Equity uses this fair value pricing method, the value assigned to International Equity's foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges. 204 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- The market value of fair valued securities as a percentage of total net assets at year end was 94.6%, 1.2%, 5.3% and 0.4% for International Equity, Bond, Intermediate Bond and Short Term Bond, respectively. REPURCHASE AGREEMENTS--The Funds will enter into repurchase agreements only with banks and other recognized financial institutions, such as broker/dealers, which are deemed by Fifth Third Asset Management, Inc. to be creditworthy pursuant to guidelines and/or standards reviewed or established by the Trustees. It is the policy of the Funds to require the custodian or sub-custodian bank to take possession, have legally segregated in the Federal Reserve Book Entry System, or have segregated within the custodian bank's vault, all securities segregated as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement transaction. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on the accrual basis and includes, where applicable, amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Paydown gains and losses on mortgage-and asset-backed securities are recorded as adjustments to interest income. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country's tax rules and rates. FOREIGN CURRENCY TRANSLATION--International Equity does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Realized foreign exchange gains or losses arise from sales and maturities of securities, sales of foreign currencies, currency exchange fluctuations between the trade and settlement dates of securities transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities, including investments in securities, resulting from changes in the currency exchange rates. FORWARD CURRENCY CONTRACTS--International Equity may enter into forward currency contracts ("forward"), which is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward fluctuates with changes in currency exchange rates. The forward is marked-to-market daily and the change in market value is recorded by a Fund as unrealized appreciation or depreciation. When the forward is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. International Equity segregates cash and/or securities in a sufficient amount as collateral to the extent the Fund has open forward contracts at period end. See Notes to Schedule of Portfolio Investments. FOREIGN CURRENCY COMMITMENTS--International Equity may enter into foreign currency commitments for the settlement of security transactions in foreign currencies. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily spot exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. 205 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- FUTURES CONTRACTS--The Funds, with the exception of Dividend Growth, Intermediate Municipal Bond and Ohio Municipal Bond, may enter into futures contracts for the delayed delivery of securities at a fixed price at some future date or for the change in the value of a specified financial index over a predetermined time period. Cash and/or securities are segregated or delivered to dealers in order to maintain a position ("initial margin"). Subsequent payments made or received by the Funds based on the daily change in the market value of the position ("variation margin") are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The use of futures contracts involves, to varying degrees, elements of market risk. Risks arise from the possible imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts. However, the Funds' activities in futures contracts are conducted through regulated exchanges which minimize counterparty credit risks. To the extent these Funds have open futures contracts at period end, a sufficient amount of cash and/or securities, which is restricted as to its use by these Funds, is segregated as collateral. See Notes to Schedules of Portfolio Investments. OPTIONS WRITTEN CONTRACTS -- When a Fund writes or sells put or call option contracts, it records the proceeds on sales (premium) received and the corresponding liability. The risk in writing a call option is that a Fund may incur a loss when the associated security market price or index value increases. The risk in writing a put option is that a Fund may incur a loss when the associated security market price or index value decreases. A Fund also has the additional risk of being unable to enter into a closing transaction if a liquid secondary market does not exist for the associated security. Option contracts are valued daily and unrealized appreciation or depreciation is recorded. A Fund will realize a gain or loss upon expiration or closing of an option transaction. When an option is exercised, the proceeds on sales (premium) for a written call option and the purchase cost for a written put option is adjusted by the amount of premium received or paid. See Notes to Schedules of Portfolio Investments. SHORT SALES -- Structured Large Cap enters into short sales whereby it sells a security it generally does not own (the security is borrowed), in anticipation of a decline in the security's price. The initial amount of a short sale is recorded as a liability which is marked to market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. If the Fund shorts a security when also holding a long position in the security (a "short against the box"), as the security's price declines, the short position increases in value, offsetting the long position's decrease in value. The opposite effect occurs if the security's price rises. The Fund realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). The Fund is liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are an expense of the Fund. The Fund segregates cash and/or securities in a sufficient amount as collateral to the extent of open short positions at period end. See Notes to Schedules of Portfolio Investments. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS (TBA)--The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are valued daily and begin earning interest on the settlement date. To the extent the Funds hold these types of securities at period end, a sufficient amount of cash and/or securities is segregated as collateral. See Notes to Schedules of Portfolio Investments. LENDING PORTFOLIO SECURITIES -- To generate additional income, the Funds may lend up to one-third of their total assets pursuant to agreements requiring that the loan be continuously collateralized by cash, U.S. Government or U.S. Government Agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities as collateral equal at all times to at least 100% of the prior day's market value plus accrued interest on the securities loaned. The Funds continue to earn interest and dividends on securities loaned while simultaneously seeking to earn interest on the investment of collateral. The applicable funds 206 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- ceased lending and terminated their agreements with the previous lending agent in April, 2007 and established a lending program with State Street Bank and Trust Company ("State Street") in June, 2007; however, no lending activity had commenced under this arrangement by fiscal year end. Pursuant to an exemptive order from the Securities and Exchange Commission, the cash collateral received by the Funds was pooled, which in turn the cash may then be invested in a pool of short-term U.S. Government securities, repurchase agreements, or other short-term corporate securities. The cash or subsequent short-term investments are recorded as assets of the Funds, offset by a corresponding liability to repay the cash at the termination of the loan. Fixed income securities received as collateral are not recorded as an asset or liability of the Fund because the Fund does not have effective control of such securities. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers deemed by the Advisor to be of good standing and creditworthy under guidelines established by the Trustees and when, in the judgment of the Advisor, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and are, therefore, not considered to be illiquid investments. OTHER--Expenses directly attributable to a Fund are charged to the Fund, while expenses which are attributable to more than one Fund of the Trust are allocated among the respective Funds based on their relative net assets or another appropriate basis. Income, expenses, and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets, except that each class separately bears expenses related specifically to that class, such as administrative services and distribution fees. DISTRIBUTIONS TO SHAREHOLDERS--Dividends, if any, from net investment income are declared/paid generally as follows: DECLARED DAILY/PAID MONTHLY DECLARED/PAID MONTHLY DECLARED/PAID QUARTERLY DECLARED/PAID ANNUALLY - --------------------------- --------------------------- --------------------------- ---------------------- Strategic Income High Yield Bond Mid Cap Growth Small Cap Growth Bond Quality Growth Small Cap Value Intermediate Bond Structured Large Cap Plus International Equity Short Term Bond Equity Index U.S. Government Bond Balanced Municipal Bond Micro Cap Value Intermediate Municipal Bond Multi Cap Value Ohio Municipal Bond Disciplined Large Cap Value Michigan Municipal Bond The LifeModel Funds (SM) Dividend Growth Technology Distributable net realized gains, if any, are declared and distributed at least annually. Dividends declared and payable to shareholders are recorded on the ex-dividend date. Dividends from net investment income and from net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for mortgage-backed securities, amortization and/or accretion of securities, foreign currency transactions, expiring capital loss carryforwards and deferrals of certain losses. To the extent distributions would exceed net investment income and net realized gains for tax purposes, they are reported as a return of capital. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassifications. Accordingly, at July 31, 2007, reclassifications were recorded as follows: 207 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- INCREASE INCREASE INCREASE (DECREASE) (DECREASE) (DECREASE) ACCUMULATED ACCUMULATED PAID-IN NET INVESTMENT NET REALIZED CAPITAL INCOME/(LOSS) GAIN/(LOSS) ---------- -------------- ------------ Small Cap Growth $ -- $ 961 $ (961) Mid Cap Growth 58 1,782 (1,840) Quality Growth 686 (748) 62 Structured Large Cap Plus -- (17) 17 Equity Index (1) (2) 3 Balanced 2 22 (24) Micro Cap Value (17) 602 (585) Small Cap Value (4) -- ^ 4 Multi Cap Value (1) -- ^ 1 Disciplined Large Cap Value (1) 1 -- ^ LifeModel Aggressive(SM) -- 1,085 (1,085) LifeModel Moderately Aggressive(SM) -- ^ 1,623 (1,623) LifeModel Moderate(SM) -- 1,895 (1,895) LifeModel Moderately Conservative(SM) (5) 320 (315) LifeModel Conservative(SM) -- ^ 92 (92) Strategic Income (4) 89 (85) Dividend Growth 66 (66) -- ^ Technology (648) 639 9 International Equity (3) 4,523 (4,520) High Yield Bond -- ^ -- ^ -- ^ Bond (16) 269 (253) Intermediate Bond (173) 269 (96) Short Term Bond (453) 571 (118) U.S. Government Bond 1 (179) 178 Municipal Bond 1 (6) 5 Intermediate Municipal Bond -- (22) 22 Ohio Municipal Bond (21) 64 (43) Michigan Municipal Bond (6) 5 1 FEDERAL TAXES--It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income or excise taxes has been made. During the year, however, Ohio Municipal Bond determined it owed (and paid) federal income tax and associated penalties and interest totaling $24,160 (amount in whole dollars) related to a correction in computation of its income for tax year ended July 31, 2004 (for which the Fund amended its federal income tax return for the year then ended). The Fund was reimbursed this same amount by a third party. NEW ACCOUNTING PRONOUNCEMENTS--In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund's tax return to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required no later than the last business day of the first financial statement reporting period for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has not completed its analysis on whether the adoption of FIN 48 will impact the financial statements. In September 2006, FASB issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. FAS 157 applies to fair value measurements already required or permitted by existing standards. The changes to current generally accepted accounting principles from the application of this statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value 208 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. While Management is currently assessing FAS 157, as of July 31, 2007, Management does not believe the adoption of FAS 157 will impact the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets. (3) RELATED PARTY TRANSACTIONS Dollar amounts in this note are in whole dollars except as noted. INVESTMENT ADVISORY FEE--Fifth Third Asset Management, Inc. ("FTAM" or the "Advisor") is the Funds' investment advisor. FTAM, a wholly owned subsidiary of Fifth Third Bank, is an indirect subsidiary of Fifth Third Bancorp, a publicly traded financial services company. For its advisory services, FTAM receives an investment advisory fee computed daily and paid monthly based on each Fund's average daily net assets. Morgan Stanley Investment Management Inc. is International Equity's Sub-Advisor. Fort Washington Investment Advisors, Inc. is High Yield Bond's Sub-Advisor. The Advisor compensates the Sub-Advisors monthly at rates as indicated in the prospectus applied to the respective Funds' average daily net assets. For certain Funds, FTAM has voluntarily agreed to waive a portion of its advisory fee. In addition, FTAM has contractually agreed to waive fees and/or reimburse certain Funds pursuant to an expense limitation agreement. See below, including the table of advisory fee, waiver and expense limitations. ADMINISTRATION FEE-- FTAM is the Trust's administrator who generally assists in all aspects of the Trust's administration and operations including providing the Funds with certain administrative personnel and services necessary to operate the Funds. FTAM receives administration fees at the annual rates shown below which are computed daily and paid monthly based on average daily net assets of the Trust; the fees are prorated among the Funds based upon their relative average daily net assets. ADMINISTRATION FEE TRUST AVERAGE DAILY NET ASSETS ------------------ ------------------------------ 0.20% Up to $1 billion 0.18% In excess of $1 billion up to $2 billion 0.17% In excess of $2 billion up to $15 billion For certain Funds, FTAM has voluntarily agreed to waive a portion of its net asset based administration fee. In addition, a $10,000 annual per class per Fund fee applies beyond the first four classes per Fund, and each Fund that commences operations after September 18, 2002 is subject to an annual $20,000 minimum fee. FTAM has contractually agreed to waive fees and/or reimburse certain Funds pursuant to an expense limitation agreement. See the table of advisory fee, waiver and expense limitations below. Pursuant to a separate agreement with FTAM, BISYS Fund Services Limited Partnership ("BISYS"), a wholly owned subsidiary of The BISYS Group, Inc., performed sub-administrative services on behalf of the Funds of the Trust including providing certain administrative personnel and services necessary to operate the Trust, for which it earned $1,407,911 in fees for the ten months ended May 31, 2007, computed as a percentage up to 0.0145% of the average daily net assets of the Trust, subject to certain minimums and reimbursement of certain expenses. State Street became the sub-administrator June 1, 2007 and is neither an affiliate of the Funds nor that of the Funds' affiliates. Sub-administration fees are an expense of FTAM. Under a Compliance Services Agreement between the Funds, Fifth Third Bank, and BISYS (the "CCO Agreement"), a BISYS employee was made available to serve as the Funds' Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS also provided infrastructure and support in implementing the written policies and procedures comprising the Funds' compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the Funds paid BISYS $200,000 per year subject to adjustment annually by the percentage increase in consumer prices for services as measured by the United States Consumer Price Index. BISYS paid the salary and other compensation earned by any such individuals as employees of BISYS. On November 21, 2006, the Trustees voted to terminate the CCO and the CCO Agreement, with the CCO's termination to become effective no later than February 21, 2007. The CCO 209 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- Agreement was terminated May 31, 2007. The Trustees also designated a new CCO, with such designation to become effective no later than February 21, 2007. The new CCO was appointed effective February 20, 2007. ADVISORY FEE, WAIVERS, EXPENSE LIMITATIONS-- In its capacity as Advisor and Administrator, FTAM entered into an expense limitation agreement with the Funds. Under the terms of the expense limitation agreement, to the extent that ordinary operating expenses incurred by a Fund in any fiscal year exceed the expense limit for the Fund, such excess amount will be the liability of the Advisor and Administrator. If the operating expenses are less than the expense limit for the Fund, the Advisor and Administrator shall be entitled to reimbursement of the fees waived or reduced to the extent that the operating expenses and the amount reimbursed do not exceed such expense limit for the Fund, under the period of the agreement (currently for the 12 month period commencing November 29, 2006 for the applicable Funds, except Dividend Growth, which is the 40 month period from August 1, 2005 through November 28, 2008). Such reimbursement shall be paid only while the expense limitation agreement is in effect and only if such amount paid, together with all other amounts reimbursed under this plan in the fiscal year, does not cause the Fund to exceed the expense limitation. The Funds' various annual fee rates, waivers and expense limitations are as follows: ADVISORY EXPENSE ADMINISTRATION ADVISORY FEE LIMITATION FEE FUND FEE WAIVER *** WAIVER - ---- -------- -------- ---------- -------------- Small Cap Growth 0.70% NA V++ NA Mid Cap Growth 0.80% NA V++ NA Quality Growth# 0.80% NA C 0.01% Structured Large Cap Plus 0.70% NA C NA Equity Index 0.30% 0.20% C 0.07% Balanced 0.80% 0.20% V NA Micro Cap Value 1.00% NA V++ NA Small Cap Value 0.90% NA V++ NA Multi Cap Value# 1.00% NA C 0.10% Disciplined Large Cap Value# 0.80% NA C 0.06% LifeModel Aggressive(SM) 0.15% 0.12% C NA LifeModel Moderately Aggressive(SM) 0.15% 0.12% C NA LifeModel Moderate(SM) 0.15% 0.12% C NA LifeModel Moderately Conservative(SM) 0.15% 0.12% C NA LifeModel Conservative(SM) 0.15% 0.12% C NA Strategic Income# 1.00% 0.30% C 0.05% Dividend Growth 0.80% 0.20% C NA Technology 1.00% NA NA NA International Equity 1.00%@ NA C NA High Yield Bond 0.70% NA C NA Bond 0.60% 0.10% V 0.04% Intermediate Bond 0.55% 0.05% V 0.01% Short Term Bond 0.50% 0.10% V NA U.S. Government Bond 0.55% 0.15% V 0.04% Municipal Bond 0.55% 0.15% V NA Intermediate Municipal Bond 0.55% 0.15% C 0.04% Ohio Municipal Bond 0.55% NA V 0.08% Michigan Municipal Bond 0.45% NA C NA CLASS EXPENSE LIMITATIONS**# ------------------------------------------------ REIMBURSEMENT FUND INSTITUTIONAL A B C ADVISOR RECOVERABLE^ - ---- ------------- ----- ----- ----- ------- -------------- Small Cap Growth 1.01% 1.26% 2.01% 2.01% 1.51% NA Mid Cap Growth 1.09% 1.34% 2.09% 2.09% 1.59% NA Quality Growth# 1.07% 1.32% 2.07% 2.07% 1.57% $136 Structured Large Cap Plus 0.92% 1.17% 1.92% 1.92% 1.42% $160 Equity Index 0.19% 0.44% 1.19% 1.19% 0.69% $1,205 Balanced 0.96% 1.21% 1.96% 1.96% 1.46% NA Micro Cap Value 1.35% 1.60% 2.35% 2.35% 1.85% NA Small Cap Value 1.20% 1.45% 2.20% 2.20% 1.70% NA Multi Cap Value# 1.19% 1.44% 2.19% 2.19% 1.69% $309 Disciplined Large Cap Value# 1.01% 1.26% 2.01% 2.01% 1.51% $274 LifeModel Aggressive(SM) 0.08% 0.33% 1.08% 1.08% 0.58% $543 LifeModel Moderately Aggressive(SM) 0.08% 0.33% 1.08% 1.08% 0.58% $915 LifeModel Moderate(SM) 0.08% 0.33% 1.08% 1.08% 0.58% $1,265 LifeModel Moderately Conservative(SM) 0.08% 0.33% 1.08% 1.08% 0.58% $318 LifeModel Conservative(SM) 0.08% 0.33% 1.08% 1.08% 0.58% $204 Strategic Income# 0.96% 1.21% 1.96% 1.96% 1.46% $426 Dividend Growth 0.73% 0.98% 1.73% 1.73% 1.23% $642 Technology NA NA NA NA NA NA International Equity 1.35% 1.60% 2.35% 2.35% 1.85% $8 High Yield Bond 0.74% 0.99% 1.74% 1.74% 1.24% $188 Bond 0.72% 0.97% 1.72% 1.72% 1.22% NA Intermediate Bond 0.70% 0.95% 0.95%* 1.70% 1.20% NA Short Term Bond 0.64% 0.89% NA 1.64% NA NA U.S. Government Bond 0.69% 0.94% NA 1.69% NA NA Municipal Bond 0.61% 0.86% 1.61% 1.61% 1.11% NA Intermediate Municipal Bond 0.67% 0.92% 0.92%* 1.67% NA $229 Ohio Municipal Bond 0.79% 1.04% 1.79% 1.79% NA NA Michigan Municipal Bond 0.68% 0.83%* 1.68% 1.68% NA $98 * In addition to any other expense limitations applicable to certain Funds, the Distributor has voluntarily agreed to limit the expenses of certain classes by means of waiving a portion of the 12b-1 fee as follows: Intermediate Bond Fund Class B - 0.75% Intermediate Municipal Bond Fund Class B - 0.75% Michigan Municipal Bond Fund Class A - 0.10% ** The limitations shown include 12b-1 or administrative services fees and are net of all waivers, voluntary or contractual. The limitations are 0.27%, 0.34% and 0.44% for Equity Index Select, Preferred and Trust Shares, respectively. *** C - Contractual, V - Voluntary as of November 29, 2006. ^ The cumulative reimbursement in thousands that may be potentially recoverable by FTAM under the expense limitation agreements for the period from November 29, 2006 through July 31, 2007. For Dividend Growth, this amount represents the period from August 1, 2005 through July 31, 2007. # The Fund's expense limitations for each class decreased by the following annual amounts as of November 29, 2006: FUND DECREASE IN LIMITATION ---- ---------------------- Quality Growth 0.01% Multi Cap Value 0.10% Disciplined Large Cap Value 0.06% Strategic Income 0.05% Intermediate Municipal Bond 0.04% @ The Advisory Fee is 0.85% for assets in excess of $750 million. ++ Non-prospectus voluntary expense limitation. 210 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- ACCOUNTING AND CUSTODY FEES-- FTAM is the Funds' accounting agent. FTAM receives accounting fees at the annual rates shown below which are computed daily and paid monthly based on average daily net assets of each Fund, subject to a $30,000 per fund annual minimum, plus out-of-pocket expenses. ACCOUNTING FEE FUND AVERAGE DAILY NET ASSETS -------------- ----------------------------- 0.020% Up to $500 million 0.015% $500 million and up to $1 billion 0.010% Over $1 billion In addition, a $10,000 annual flat per class fee per fund applies beyond the initial class of shares. Pursuant to a separate agreement with FTAM, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), a wholly owned subsidiary of The BISYS Group, Inc., performed sub-accounting services on behalf of the Funds of the Trust, for which it earned $2,464,294 in fees for the ten months ended May 31, 2007, computed as a percentage, up to 0.015%, of the average daily net assets of each Fund. This amount also reflects a $10,000 annual flat per class fee per fund beyond the initial class of shares, and reimbursement of certain fees and other miscellaneous expenses. State Street became the sub-accountant as of June 1, 2007. Sub-accounting fees are an expense of FTAM. Fifth Third Bank, the Funds' custodian until May 31, 2007, received custody fees computed at the annual rates shown below based on average daily net assets of each Funds, plus transaction charges. CUSTODY FEE FUND AVERAGE DAILY NET ASSETS ----------- ----------------------------- 0.0100% Up to $25 million 0.0075% $25 million up to $100 million 0.0050% $100 million up to $200 million 0.0025% Over $200 million Custody fees and expenses are paid by the Funds. The Funds of the Trust incurred custody fees and expenses from Fifth Third Bank for the ten months ended May 31, 2007 in the aggregate amount of $1,060,981. State Street became the Funds' custodian as of June 1, 2007. Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining competitive expense ratios. DISTRIBUTION AND/OR SERVICE FEES, WAIVERS--The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor, Inc. (the "Former Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., served as the Trust's Distributor/principal underwriter until May 11, 2007; ALPS Funds Distributor, Inc., doing business as FTAM Funds Distributor, Inc. ("ALPS"), became the Trust's Distributor/principal underwriter as of May 14, 2007. Under the terms of the Plan, the Funds will compensate the Distributor from the net assets of the Funds' Class A, Class B, Class C and Advisor Shares to finance activities intended to result in the sales of each Funds' shares. The Plan provides that the Funds will incur fees accrued daily and paid monthly to the Distributor at annual rates up to that shown below based on average daily net assets of the respective classes in the Plan. Further, as of November 29, 2006, the Former Distributor until its termination, and the present Distributor have voluntarily agreed to limit the expenses of certain classes of certain funds by way of waiving a portion of the Distribution and/or Service Fee; annual 12b-1 fees and voluntary waivers are shown below. CLASS DISTRIBUTION/SERVICE FEE DISTRIBUTION/SERVICE FEE WAIVER ----- ------------------------ ------------------------------- Class A 0.25% 0.10% (Michigan Municipal Bond) Class B 1.00% 0.75% (Intermediate Bond, Intermediate Municipal Bond) Class C 0.75% NA Advisor 0.50% NA The Distributor/principal underwriter earns/receives commissions on certain sales of Class A and Advisor Share sales (most of which is reallowed to the selling broker-dealer) as well as contingent deferred sales commissions on certain redemptions of Class A, B, and C Shares (all of which is paid to the finance agent who financed advance commissions, as applicable, on sales of these shares). As of May 1, 2007, FTAM is the Class C advance commission finance agent. No CDSCs on Class C shares from May 1, 2007 through July 31, 2007 are 211 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- applicable to FTAM. The commissions earned and reallowed during the year for all Funds of the Trust are as follows: FORMER DISTRIBUTOR DISTRIBUTOR (ALPS) TOTAL ACTIVITY FROM 8/1/06-5/11/07 FROM 5/14/07-7/31/07 FISCAL YEAR ENDED 7/31/07 - -------- ------------------- -------------------- ------------------------- Commissions earned/received $1,122,343 $419,956 $1,542,299 Commissions reallowed to affiliated broker-dealers 951,009 286,582 1,237,591 Commissions reallowed to unaffiliated broker-dealers 38,203 106,375 144,578 ADMINISTRATIVE SERVICES FEE--The Trust had an Administrative Services Agreement with the Former Distributor until May 11, 2007 and entered into a similar agreement with ALPS as of May 14, 2007 with respect to Class C, Select, Preferred and Trust Shares. Under the Agreements, certain administrative services and maintenance of shareholder accounts were provided these shareholders during the year. The Former Distributor received and the Distributor receives, as do other financial institutions, which may include affiliates of the Advisor, fees computed at rates up to those shown below, based on average daily net assets of the respective classes. CLASS ADMINISTRATIVE SERVICES FEE ----- --------------------------- Class C 0.25% Select 0.08% Preferred 0.15% Trust 0.25% TRANSFER AND DIVIDEND DISBURSING AGENT--BISYS Ohio served as transfer and dividend disbursing agent until May 14, 2007, after which Boston Financial Data Services ("BFDS") assumed these functions for the Funds effective May 14, 2007. BFDS is neither an affiliate of the Funds nor that of the Funds' affiliates. Transfer agent fees for BISYS Ohio were computed at the following annual rates based on the average daily net assets of each Fund, plus annual flat fees for each additional share class: EQUITY INDEX, LIFEMODEL FUNDS(SM) ALL REMAINING FUNDS FUND AVERAGE DAILY NET ASSETS - -------------------------------- ------------------- ----------------------------- 0.0185% 0.0195% First $700 million 0.0170% 0.0170% From $700 million to $1 billion 0.0155% 0.0155% From $1billion to $2 billion 0.0125% 0.0130% Over $2 billion Pursuant to a Services Agreement, BISYS Ohio retained FTAM to perform certain services for the Trust and each Fund thereunder related to the Transfer Agency Agreement between the Trust and BISYS Ohio. FTAM received a fee at the annual rate of 0.005% from BISYS Ohio computed as a percentage of the average daily net assets of each Fund. FTAM earned $516,192 in fees for the fiscal year to date period through May, 2007, when this agreement was terminated. Pursuant to a Services Agreement with the Trust dated May 14, 2007, FTAM provides certain services similar to that under the former agreement on behalf of the Trust. Under this agreement, FTAM's fees are paid monthly and are accrued daily based upon each Fund's relative average daily net assets at the aggregate annual rate of $370,000. FTAM earned $77,083 from May 14, 2007 through July 31, 2007 under this agreement. OTHER--Certain officers of the Trust are also officers of FTAM and or its affiliates; certain officers of the Trust who served until their resignation in May 2007 were affiliated with the above companies with the exception of State Street, BFDS and ALPS. Certain non-principal officers of the Trust effective June 28, 2007 are also employees of State Street. None of these officers are paid any fees by the Trust. PAYMENTS BY AFFILIATES--BISYS Fund Services, Inc. ("BISYS"), which formerly provided various services to the Trust, reached a settlement and entered into an order (the "Order") with the Securities and Exchange Commission ("SEC") regarding the SEC's investigation of BISYS's past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Neither the Trust nor FTAM was a party to the Order, nor is the Trust or FTAM bound by the Order or its findings. It is unclear the extent to which the Trust, FTAM and certain of its former service providers are or may be affected by the SEC's investigation of BISYS or by the Order. In response to the SEC's inquiries related to this matter, including those of the Trust's former service arrangements with BISYS, FTAM made a one time contribution of money to certain Funds of the Trust 212 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- during the year ended July 31, 2007. The affected Funds and the amounts paid to such Funds were determined based on various factors such as certain Fund expenses during 1999 through 2001 as well as the applicable Funds' net assets during this time period. The amount credited to each class of the applicable Funds was determined according to the relative net assets of such classes on the date the amounts were recognized. (4) INVESTMENT TRANSACTIONS Cost of purchases and proceeds from sales of investments (excluding short-term securities) for the year ended July 31, 2007, were as follows: NON U.S. GOVERNMENT SECURITIES U.S. GOVERNMENT SECURITIES ------------------------------ -------------------------- FUND PURCHASES SALES PURCHASES SALES - ---- --------- ----- --------- ----- Small Cap Growth $131,082 $167,145 $ -- $ -- Mid Cap Growth 200,393 267,910 -- -- Quality Growth 684,073 923,804 -- -- Structured Large Cap Plus 302,149 317,502 -- -- Equity Index 17,616 53,527 -- -- Balanced 37,011 67,459 5,337 5,726 Micro Cap Value 69,887 114,615 -- -- Small Cap Value 57,214 75,898 -- -- Multi Cap Value 80,378 137,569 -- -- Disciplined Large Cap Value 308,557 311,326 -- -- LifeModel Aggressive(SM) 34,907 26,246 -- -- LifeModel Moderately Aggressive(SM) 68,027 80,494 -- -- LifeModel Moderate(SM) 96,126 131,569 -- -- LifeModel Moderately Conservative(SM) 30,684 33,848 -- -- LifeModel Conservative(SM) 12,920 16,503 -- -- Strategic Income 23,119 28,414 3,026 899 Dividend Growth 17,192 17,977 -- -- Technology 197,408 222,851 -- -- International Equity 93,712 152,008 -- -- High Yield Bond 33,823 26,584 -- -- Bond 55,848 95,266 118,108 75,556 Intermediate Bond 594,909 662,947 297,736 182,756 Short Term Bond 106,256 81,130 87,108 111,874 U.S. Government Bond 1,563 3,245 7,379 28,180 Municipal Bond 10,871 12,722 -- -- Intermediate Municipal Bond 57,511 79,451 -- -- Ohio Municipal Bond 13,401 21,228 -- -- Michigan Municipal Bond 14,032 22,953 -- -- (5) LINE OF CREDIT The Trust participated in a credit agreement with Citibank N.A. until the Agreement expired in November, 2006. Under the terms of the agreement, the Trust was able to borrow up to $75 million. The purpose of the agreement was to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Citibank N.A. received an annual facility fee of 0.09% on the aggregate principal amount committed under the agreement for providing the Line of Credit. Each Fund paid a pro-rata portion of this facility fee, plus any interest on amounts borrowed, if any. There were no borrowings against the line of credit during the period until the Agreement expired. 213 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- (6) FEDERAL TAX INFORMATION The tax character of distributions paid during the fiscal years ended July 31, 2007 and 2006 was as follows: YEAR ENDED JULY 31, 2007 ----------------------------------------------------- DISTRIBUTIONS PAID FROM ----------------------------------------------------- NET LONG TERM TAX RETURN TOTAL ORDINARY CAPITAL EXEMPT OF DISTRIBUTIONS FUND INCOME GAINS INCOME CAPITAL PAID - ---- -------- ------- ------ ------- ------------- Small Cap Growth $ 3,010 $30,186 $ -- $ -- $ 33,196 Mid Cap Growth -- 74,694 -- -- 74,694 Quality Growth 3,228 10,916 -- -- 14,144 Structured Large Cap Plus 1,608 758 -- -- 2,366 Equity Index 7,235 -- -- -- 7,235 Balanced 1,748 -- -- -- 1,748 Micro Cap Value 2,786 22,169 -- -- 24,955 Small Cap Value 8,327 8,286 -- -- 16,613 Multi Cap Value 8,223 50,068 -- -- 58,291 Disciplined Large Cap Value 16,306 81,738 -- -- 98,044 LifeModel Aggressive(SM) 1,226 5,019 -- -- 6,245 LifeModel Moderately Aggressive(SM) 5,443 8,048 -- -- 13,491 LifeModel Moderate(SM) 14,207 10,616 -- -- 24,823 LifeModel Moderately Conservative(SM) 3,085 2,514 -- -- 5,599 LifeModel Conservative(SM) 1,983 972 -- -- 2,955 Strategic Income 7,384 1,526 -- -- 8,910 Dividend Growth 496 -- -- -- 496 International Equity 3,962 9,030 -- -- 12,992 High Yield Bond 4,851 -- -- -- 4,851 Bond 12,928 -- -- -- 12,928 Intermediate Bond 22,513 -- -- 164 22,677 Short Term Bond 10,846 -- -- 234 11,080 U.S. Government Bond 1,825 -- -- -- 1,825 Municipal Bond 9 437 1,637 -- 2,083 Intermediate Municipal Bond 42 492 5,693 -- 6,227 Ohio Municipal Bond 54 110 3,641 -- 3,805 Michigan Municipal Bond 10 -- 1,547 -- 1,557 YEAR ENDED JULY 31, 2006 # ------------------------------------------- DISTRIBUTIONS PAID FROM ------------------------------------------- NET LONG TERM TAX TOTAL ORDINARY CAPITAL EXEMPT DISTRIBUTIONS FUND INCOME GAINS INCOME PAID - ---- -------- ------- ------ ------------- Small Cap Growth $ -- $22,453 $ -- $ 22,453 Mid Cap Growth -- 4,993 -- 4,993 Quality Growth -- -- -- -- Structured Large Cap Plus 1,931 2,280 -- 4,211 Equity Index 7,005 -- -- 7,005 Balanced 1,844 -- -- 1,844 Micro Cap Value 91 42,152 -- 42,243 Small Cap Value 8,884 5,923 -- 14,807 Multi Cap Value 2,972 27,741 -- 30,713 Disciplined Large Cap Value 17,021 48,765 -- 65,786 LifeModel Aggressive(SM) 1,846 3,132 -- 4,978 LifeModel Moderately Aggressive(SM) 6,436 5,004 -- 11,440 LifeModel Moderate(SM) 12,720 8,544 -- 21,264 LifeModel Moderately Conservative(SM) 2,949 2,257 -- 5,206 LifeModel Conservative(SM) 2,027 448 -- 2,475 Strategic Income 6,797 472 -- 7,269 Dividend Growth 237 -- -- 237 International Equity 7,124 10,140 -- 17,264 High Yield Bond 2,432 -- -- 2,432 Bond 13,862 697 -- 14,559 Intermediate Bond 23,971 -- -- 23,971 Short Term Bond 11,893 -- -- 11,893 U.S. Government Bond 1,998 153 -- 2,151 Municipal Bond 160 2,043 1,786 3,989 Intermediate Municipal Bond 748 1,654 6,615 9,017 Ohio Municipal Bond 43 275 4,334 4,652 Michigan Municipal Bond -- -- 1,881 1,881 # Represents distributions on a cash basis. 214 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- As of July 31, 2007, the components of accumulated earnings/(deficit) on a tax basis was as follows: UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED TOTAL TAX UNDISTRIBUTED LONG-TERM CAPITAL AND UNREALIZED ACCUMULATED EXEMPT ORDINARY CAPITAL OTHER APPRECIATION/ EARNINGS/ FUND INCOME INCOME GAINS/(LOSS) LOSSES (DEPRECIATION)* (DEFICIT) - ---- ------------- ------------- -------------- ------------ --------------- ----------- Small Cap Growth $ -- $ 5,918 $ 22,211 $ (8) $ 26,573 $ 54,694 Mid Cap Growth -- 3,571 30,793 -- 77,307 111,671 Quality Growth -- 13,345 59,738 -- 87,455 160,538 Structured Large Cap Plus -- 608 916 (6,509) 16,377 11,392 Equity Index -- 581 -- (16,606) 247,862 231,837 Balanced -- 463 -- (40,331) 3,359 (36,509) Micro Cap Value -- 359 17,900 -- 9,777 28,036 Small Cap Value -- 1,834 9,714 -- 6,890 18,438 Multi Cap Value -- 4,445 35,183 -- 85,377 125,005 Disciplined Large Cap Value -- 10,829 22,169 -- 116,734 149,732 LifeModel Aggressive(SM) -- 1,303 13,550 -- 38,067 52,920 LifeModel Moderately Aggressive(SM) -- 3,907 20,542 -- 57,980 82,429 LifeModel Moderate(SM) -- 5,982 24,354 -- 49,945 80,281 LifeModel Moderately Conservative(SM) -- 998 4,759 -- 9,550 15,307 LifeModel Conservative(SM) -- 448 1,227 -- 1,326 3,001 Strategic Income -- 262 1,852 -- 573 2,687 Dividend Growth -- 24 -- (13,693) 2,884 (10,785) Technology -- -- -- (38,306) 1,270 (37,036) International Equity -- 9,472 30,743 (16,217) 119,623 143,621 High Yield Bond -- 51 -- (451) (2,943) (3,343) Bond -- 80 -- (3,377) (4,758) (8,055) Intermediate Bond -- -- -- (40,912) (3,294) (44,206) Short Term Bond -- -- -- (23,318) (2,086) (25,404) U.S. Government Bond -- 271 -- (492) (466) (687) Municipal Bond 88 -- ^ 87 (1) 786 960 Intermediate Municipal Bond 4 -- 306 -- 1,673 1,983 Ohio Municipal Bond 233 -- 335 -- 571 1,139 Michigan Municipal Bond -- -- -- (370) (320) (690) * The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales, the difference between book and tax amortization methods for premium and market discounts, passive foreign investment company losses, and return of capital distributions: As of July 31, 2007, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset future capital gains, if any, to the extent provided by the U.S. Treasury regulations: EXPIRATION YEAR ----------------------------------------------------------------------------- FUND 2008 2009 2010 2011 2012 2013 2014 2015 TOTAL - ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- Structured Large Cap Plus $ -- $ 5,706 $ -- $ -- $ 793 $ -- $ -- $ -- $ 6,499 Equity Index -- -- -- 15,992 606 -- -- -- 16,598 Balanced -- -- -- 40,331 -- -- -- -- 40,331 Dividend Growth -- -- $10,630 3,024 39 -- -- -- 13,693 Technology -- -- 5,367 32,940 -- -- -- -- 38,307 High Yield Bond -- -- -- -- -- -- -- 451 451 Bond Fund -- -- -- -- -- -- 399 2,126 2,525 Intermediate Bond 3,390 970 313 -- 2,968 3,491 6,550 11,880 29,562 Short Term Bond 1,126 -- -- -- 734 6,363 9,779 4,709 22,711 U.S. Government Bond -- -- -- -- -- -- 156 236 392 Michigan Municipal Bond -- -- -- -- -- -- 52 273 325 As of July 31, 2007, the following Funds have additional capital loss carryforwards subject to certain limitations on availability, to offset future capital gains, if any, as the successor of a merger: EXPIRATION YEAR ----------------------------------------------- 2008 2009 2010 2011 TOTAL ------- ------- ------- ------- ------- International Equity $ 923 $ 868 $ 9,116 $ 5,305 $16,212 Intermediate Bond 10,029 -- -- -- 10,029 Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. For the year ended July 31, 2007, the fund deferred to 215 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- August 1, 2007 post October capital losses, post October currency losses and post October passive foreign investment company losses of: CAPITAL LOSSES ------- Bond $ 855 Intermediate Bond 1,330 Short Term Bond 605 U.S. Government Bond 100 Michigan Municipal Bond 43 During the tax year ended July 31, 2007, the funds utilized capital loss carryforwards in the following amounts: AMOUNT UTILIZED --------------- Quality Growth $11,051 Structured Large Cap Plus 25,901 Equity Index 20,954 Balanced 3,787 Dividend Growth 1,298 Technology 7,127 International Equity 9,204 Short Term Bond 220* Intermediate Municipal Bond 29 Ohio Municipal Bond 134 * Indicates capital loss carryover amount expired during the year ended July 31, 2007. (7) CONCENTRATIONS International Equity invests in equity and fixed income securities of non-U.S. issuers. Although the Fund maintains a diversified investment portfolio, the political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations. Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings. Intermediate Municipal Bond held a significant amount of its investments in debt obligations issued by the State of Michigan and its political subdivisions, agencies and public authorities at July 31, 2007. The Fund is more susceptible to factors adversely affecting issuers of municipal securities from this state than a fund that is not concentrated in these issuers to the same extent. Ohio Municipal Bond and Michigan Municipal Bond hold a significant portion of their investments in debt obligations issued by each of the states of Ohio and Michigan, respectively, and each state's respective political subdivisions, agencies and public authorities. These Funds are more susceptible to factors adversely affecting issuers of municipal securities from these states than a fund that is not concentrated in these issuers to the same extent. (8) SUBSEQUENT EVENT PROPOSED FUND MERGERS--At a special meeting of the Board of Trustees on August 7, 2007, the Trustees approved several Agreements and Plans of Reorganization (the "Plans"), each of which propose consolidations of certain funds of the Trust. Several Funds within these financial statements are parties to proposed reorganizations, whereby the "Acquiring Fund" proposes to acquire the "Acquired Fund" as shown below. Each of the proposed mergers is independent of and not conditioned on the others. The Funds of the Trust that are subjects of the proposed mergers filed a combined proxy/prospectus filing with the Securities and Exchange Commission in August, 2007 indicating anticipated shareholder meeting and closing dates to be on or about November 16, 2007. The Plans are subject to approval of the shareholders of the acquired Funds. ACQUIRING FUND ACQUIRED FUND -------------- ------------- Mid Cap Growth Technology Quality Growth Balanced Bond Intermediate Bond Bond U.S. Government Bond 216 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- To the Shareholders and Trustees of Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fifth Third Small Cap Growth Fund, Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth Third Structured Large Cap Plus Fund (formerly Fifth Third Large Cap Core Fund), Fifth Third Equity Index Fund, Fifth Third Balanced Fund, Fifth Third Micro Cap Value Fund, Fifth Third Small Cap Value Fund, Fifth Third Multi Cap Value Fund, Fifth Third Disciplined Large Cap Value Fund, Fifth Third LifeModel Aggressive Fund, Fifth Third LifeModel Moderately Aggressive Fund, Fifth Third LifeModel Moderate Fund, Fifth Third LifeModel Moderately Conservative Fund, Fifth Third LifeModel Conservative Fund, Fifth Third Strategic Income Fund, Fifth Third Dividend Growth Fund, Fifth Third Technology Fund, Fifth Third International Equity Fund, Fifth Third High Yield Bond Fund, Fifth Third Bond Fund, Fifth Third Intermediate Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third U.S. Government Bond Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate Municipal Bond Fund, Fifth Third Ohio Municipal Bond Fund, and Fifth Third Michigan Municipal Bond Fund (separate portfolios constituting Fifth Third Funds, hereafter referred to as the "Funds") at July 31, 2007, the results of each of their operations for the year then ended, and the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Columbus, Ohio September 28, 2007 217 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT^ The Trustees and Officers of the Funds, age, the position they hold with the Funds, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the fund complex that the Trustee oversees and any other directorships held by the Trustee are listed in the two tables immediately following. The business address of the persons listed below is 38 Fountain Square Plaza, Cincinnati, Ohio 45202. INDEPENDENT TRUSTEES NUMBER OF PORTFOLIOS POSITION(S) TERM OF IN FUND HELD OFFICE AND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS AGE FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE - ------------------- -------------- -------------- ------------------------------------- ----------- ------------------------ Edward Burke Carey* Chairman-Board Indefinite, Carey Realty Investments, Inc. 36 Canisius College-Trustee Age: 62 of Trustees January 1989- (real estate development and Present consulting), President, 1990-Present. David J. Durham Trustee Indefinite, Chairman of Clipper Products, 36 None Age: 62 June 2001- Inc., a wholesale distributor, Present 2005-present. Chairman of Norris Products Corp., a wholesale distributor, 2005-present. President and Chief Executive Officer of Clipper Products, Inc., 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, EVP and Managing Director, 36 Trustee for Hanover Age: 57 March 2001- DHR International (executive College, National Present recruiter), April 2007-Present. Underground Freedom Consultant, Duke Energy Center, The Cincinnati April 2006-March 2007. Zoo, The Ohio Arts President, Cinergy Council, The Cincinnati Foundation, November Parks Foundation and 2001-March 2006. Playhouse in the Park. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 36 Printing Industries of Age: 62 October 2001- Present. Business America: Web Offset Present Management Consultant, Assoc., Director; Master April 2000-February 2002. Printers of America, Director. David J. Gruber Trustee Indefinite, President, DJG Financial 36 None Age: 43 December 2003- Consulting (accounting and Present finance consultant), June 2007- Present. Resources Global Professionals, Project Professional, December 2004-June 2007. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO, April 2003-December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director, April 1996-March 2003. ____________________ ^ Additional disclosures can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. * Mr. Carey was treated by the Trust as an "interested person" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor. Mr. Carey was an "interested person" because of his past business transactions with Fifth Third Bank and its affiliates. As of August 1, 2007, Mr. Carey was not an "interested person" of the Trust and the Investment Advisor. 218 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- OFFICERS -------- NAME AND POSITION(S) HELD TERM OF OFFICE AND PRINCIPAL OCCUPATION(S) AGE WITH THE FUNDS LENGTH OF TIME SERVED DURING THE PAST 5 YEARS --------- ----------------- --------------------- ------------------------ E. Keith Wirtz President Indefinite, President, Fifth Third Asset Management, Inc. Age: 47 April 2007- 2003- Present, Managing Partner, Paladin Present Investment Associates, LLC, 2000-2003. Matthew A. Ebersbach Vice President Indefinite, Assistant Vice President of Fifth Third Bank Age: 37 March 2006- since 2001. Present Richard B. Ille Vice President Indefinite, Managing Director, Products and Marketing, Age: 42 April 2007- Fifth Third Asset Management, Inc., Present 2001-Present. James A. Mautino Anti-Money Laundering Indefinite, Vice President and Chief Compliance Officer, Age: 39 and Chief Compliance Officer February 2007- Fifth Third Asset Management, Inc. August Present 2005-Present, Director of Risk and Compliance, State Street Bank and Trust Company, October 1995-July 2005. Christopher Bell Treasurer Indefinite, Chief Operating Officer, Fifth Third Asset Age: 37 April 2007- Management, Inc., 2005-Present, Senior Vice Present President and Chief Financial Officer, Investment Advisors Division, Fifth Third Bank 1998-2005. Matthew A. Swendiman Secretary Indefinite, Assistant Vice President and Counsel of Fifth Age: 34 April 2007- Third Bank, March 2006 to Present. Attorney, Present Kirkpatrick & Lockhart Nicholson Graham, LLP, May 2005-March 2006. Counsel, The Phoenix Companies, Inc., July 2002-April 2005. Assistant Vice President and Assistant Counsel, Conseco Capital Management, Inc., December 2000-June 2002. Christopher Roetzer Assistant Treasurer Indefinite, Vice President, State Street Bank and Trust Age: 44 June 2007- Company (a Massachusetts trust company) Present from 2004 to Present. Vice President, Assistant Treasurer and Principal Accounting Officer, IDEX Mutual Funds, AEGON/Transamerica Series Fund, Inc.; various AEGON USA affiliates, 1986-2003. Tracy Kaufman Assistant Treasurer Indefinite, Officer, State Street Bank and Trust Company Age: 48 June 2007- (a Massachusetts trust company) from 1986 Present to Present. Francine S. Hayes Assistant Secretary Indefinite, Vice President and Counsel, State Street Bank Age: 39 June 2007- and Trust Company (a Massachusetts trust Present company) from 2004 to Present; and Assistant Vice President and Counsel, State Street Bank and Trust Company, from 2001 to 2004. 219 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- ADDITIONAL TAX INFORMATION For the taxable year ended July 31, 2007, the following percentage of income dividends paid by the Fund qualify for the dividends received deduction available to corporations: PERCENTAGE ---------- Small Cap Growth 6% Quality Growth 63% Structured Large Cap Plus 100% Equity Index 100% Balanced 52% Micro Cap Value 83% Small Cap Value 18% Multi Cap Value 100% Disciplined Large Cap Value 78% LifeModel Aggressive(SM) 48% LifeModel Moderately Aggressive(SM) 21% LifeModel Moderate(SM) 12% LifeModel Moderately Conservative(SM) 9% LifeModel Conservative(SM) 4% Strategic Income 27% Dividend Growth 100% For the fiscal year ended July 31, 2007, certain dividends paid by the Funds are subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. To the extent dividends are paid during the calendar year 2007, complete information will be reported on shareholders' 2007 Form 1099-DIV. The amount designated as qualified dividend income for the year ended July 31, 2007 will be at the highest allowable amount permitted by law. The Funds designate the following amounts as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals. The amounts designated may not agree with the long term capital gains in the tax character of distribution table due to utilization of earnings and profits distributed to shareholders on redemption of shares. AMOUNT ------- Small Cap Growth $30,186 Mid Cap Growth 74,694 Quality Growth 10,917 Structured Large Cap Plus 758 Micro Cap Value 22,169 Small Cap Value 8,286 Multi Cap Value 50,069 Disciplined Large Cap Value 81,739 LifeModel Aggressive(SM) 5,019 LifeModel Moderately Aggressive(SM) 8,048 LifeModel Moderate(SM) 10,616 LifeModel Moderately Conservative(SM) 2,514 LifeModel Conservative(SM) 972 Strategic Income 1,526 International Equity 9,030 Municipal Bond 438 Intermediate Municipal Bond 493 Ohio Municipal Bond 111 220 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- International Equity may elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per outstanding share on July 31, 2007 are as follows: FOREIGN FOREIGN SOURCE TAX INCOME EXPENSE ------- ------- International Equity $0.39 $0.03 If elected, the pass-through of the foreign tax credit will affect only those persons who are shareholders on the dividend record date in December 2007. These shareholders will receive more detailed information along with their 2007 Form 1099-DIV. RESULTS OF SHAREHOLDER PROXY At a special meeting of shareholders of the Fifth Third Large Cap Core Fund (the "Fund"), a series of the Fifth Third Funds held on June 19, 2007, the results of Proposal 1 were as follows: Proposal 1: To approve the elimination of the Fund's fundamental investment restriction with respect to the short sale of securities. VOTES -------------------------------- Affirmative 11,460,598 Against 222,204 Abstain 6,599 221 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- EXPENSE EXAMPLE As a shareholder of the Fifth Third Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fifth Third Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2007 through July 31, 2007. ACTUAL EXPENSES - --------------- The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, and $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/07 7/31/07 2/1/07 - 7/31/07 2/1/07 - 7/31/07 --------- --------- ---------------- ---------------- Small Cap Growth Institutional Shares $1,000.00 $1,074.50 $ 5.20 1.01% Class A Shares 1,000.00 1,072.70 6.42 1.25% Class B Shares 1,000.00 1,069.10 10.31 2.01% Class C Shares 1,000.00 1,068.10 10.31 2.01% Advisor Shares 1,000.00 1,071.10 7.75 1.51% Mid Cap Growth Institutional Shares 1,000.00 1,038.40 5.51 1.09% Class A Shares 1,000.00 1,036.10 6.71 1.33% Class B Shares 1,000.00 1,032.50 10.53 2.09% Class C Shares 1,000.00 1,032.50 10.53 2.09% Advisor Shares 1,000.00 1,035.30 8.02 1.59% Quality Growth Institutional Shares 1,000.00 1,069.50 5.49 1.07% Class A Shares 1,000.00 1,068.50 6.77 1.32% Class B Shares 1,000.00 1,064.70 10.65 2.08% Class C Shares 1,000.00 1,064.40 10.65 2.08% Advisor Shares 1,000.00 1,066.80 8.15 1.59% Structured Large Cap Plus Institutional Shares 1,000.00 990.60 4.54 0.92% Class A Shares 1,000.00 989.30 5.72 1.16% Class B Shares 1,000.00 985.80 9.45 1.92% Class C Shares 1,000.00 986.40 9.46 1.92% Advisor Shares 1,000.00 988.30 7.05 1.43% Equity Index Institutional Shares 1,000.00 1,020.30 0.95 0.19% Class A Shares 1,000.00 1,019.00 2.15 0.43% Class B Shares 1,000.00 1,015.00 5.95 1.19% Class C Shares 1,000.00 1,015.10 5.95 1.19% Advisor Shares 1,000.00 1,017.90 3.45 0.69% Select shares 1,000.00 1,019.80 1.35 0.27% Preferred Shares 1,000.00 1,019.50 1.70 0.34% Trust Shares 1,000.00 1,019.00 2.20 0.44% Balanced Institutional Shares 1,000.00 1,042.20 4.86 0.96% Class A Shares 1,000.00 1,041.10 6.07 1.20% Class B Shares 1,000.00 1,036.80 9.90 1.96% Class C Shares 1,000.00 1,037.00 9.90 1.96% Advisor Shares 1,000.00 1,039.90 7.38 1.46% Micro Cap Value Institutional Shares 1,000.00 1,000.00 6.69 1.35% Class A Shares 1,000.00 998.50 7.88 1.59% Class B Shares 1,000.00 995.30 11.63 2.35% Class C Shares 1,000.00 993.80 11.62 2.35% Advisor Shares 1,000.00 997.00 9.16 1.85% _____________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 222 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/07 7/31/07 2/1/07 - 7/31/07 2/1/07 - 7/31/07 --------- --------- ---------------- ---------------- Small Cap Value Institutional Shares $1,000.00 $ 994.60 $ 5.93 1.20% Class A Shares 1,000.00 993.10 7.12 1.44% Class B Shares 1,000.00 988.80 10.85 2.20% Class C Shares 1,000.00 989.20 10.85 2.20% Advisor Shares 1,000.00 991.50 8.39 1.70% Multi Cap Value Institutional Shares 1,000.00 1,041.60 6.02 1.19% Class A Shares 1,000.00 1,040.10 7.23 1.43% Class B Shares 1,000.00 1,035.80 11.05 2.19% Class C Shares 1,000.00 1,036.00 11.11 2.20% Advisor Shares 1,000.00 1,039.00 8.54 1.69% Disciplined Large Cap Value Institutional Shares 1,000.00 1,021.80 5.06 1.01% Class A Shares 1,000.00 1,019.90 6.21 1.24% Class B Shares 1,000.00 1,016.70 10.05 2.01% Class C Shares 1,000.00 1,016.30 9.95 1.99% Advisor Shares 1,000.00 1,018.70 7.56 1.51% LifeModel Aggressive(SM) Institutional Shares 1,000.00 1,044.80 0.41 0.08% Class A Shares 1,000.00 1,043.60 1.62 0.32% Class B Shares 1,000.00 1,040.20 5.46 1.08% Class C Shares 1,000.00 1,040.20 5.46 1.08% Advisor Shares 1,000.00 1,043.10 2.94 0.58% LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 1,038.90 0.40 0.08% Class A Shares 1,000.00 1,037.70 1.62 0.32% Class B Shares 1,000.00 1,034.00 5.45 1.08% Class C Shares 1,000.00 1,033.90 5.45 1.08% Advisor Shares 1,000.00 1,036.50 2.93 0.58% LifeModel Moderate(SM) Institutional Shares 1,000.00 1,033.90 0.40 0.08% Class A Shares 1,000.00 1,032.70 1.61 0.32% Class B Shares 1,000.00 1,029.00 5.43 1.08% Class C Shares 1,000.00 1,028.90 5.43 1.08% Advisor Shares 1,000.00 1,031.50 2.92 0.58% LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 1,030.10 0.40 0.08% Class A Shares 1,000.00 1,029.60 1.61 0.32% Class B Shares 1,000.00 1,025.90 5.42 1.08% Class C Shares 1,000.00 1,025.80 5.42 1.08% Advisor Shares 1,000.00 1,028.50 2.92 0.58% LifeModel Conservative(SM) Institutional Shares 1,000.00 1,025.30 0.40 0.08% Class A Shares 1,000.00 1,025.00 1.61 0.32% Class B Shares 1,000.00 1,021.10 5.41 1.08% Class C Shares 1,000.00 1,021.20 5.41 1.08% Advisor Shares 1,000.00 1,023.70 2.91 0.58% STRATEGIC INCOME Institutional Shares 1,000.00 986.20 4.63 0.94% Class A Shares 1,000.00 984.90 5.86 1.19% Class B Shares 1,000.00 982.00 9.39 1.91% Class C Shares 1,000.00 982.00 9.39 1.91% Advisor Shares 1,000.00 984.50 6.94 1.41% DIVIDEND GROWTH Institutional Shares 1,000.00 1,038.90 3.69 0.73% Class A Shares 1,000.00 1,038.30 4.90 0.97% Class B Shares 1,000.00 1,340.40 8.73 1.73% Class C Shares 1,000.00 1,340.00 8.72 1.73% Advisor Shares 1,000.00 1,036.80 6.16 1.22% _____________________ * Expenses are equal to the average account value times the fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 223 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/07 7/31/07 2/1/07 - 7/31/07 2/1/07 - 7/31/07 --------- --------- ---------------- ---------------- Technology Institutional Shares $1,000.00 $1,034.80 $ 8.02 1.59% Class A Shares 1,000.00 1,033.50 9.28 1.84% Class B Shares 1,000.00 1,029.50 13.08 2.60% Class C Shares 1,000.00 1,029.60 13.13 2.61% Advisor Shares 1,000.00 1,032.20 10.63 2.11% International Equity Institutional Shares 1,000.00 1,098.20 7.02 1.35% Class A Shares 1,000.00 1,097.40 8.32 1.60% Class B Shares 1,000.00 1,092.60 12.24 2.36% Class C Shares 1,000.00 1,092.90 12.25 2.36% Advisor Shares 1,000.00 1,095.40 9.66 1.86% High Yield Bond Institutional Shares 1,000.00 986.90 3.65 0.74% Class A Shares 1,000.00 984.70 4.82 0.98% Class B Shares 1,000.00 982.10 8.55 1.74% Class C Shares 1,000.00 981.10 8.55 1.74% Advisor Shares 1,000.00 984.50 6.10 1.24% Bond Institutional Shares 1,000.00 1,013.50 3.59 0.72% Class A Shares 1,000.00 1,011.30 4.79 0.96% Class B Shares 1,000.00 1,008.40 8.57 1.72% Class C Shares 1,000.00 1,008.40 8.57 1.72% Advisor Shares 1,000.00 1,011.10 6.08 1.22% Intermediate Bond Institutional Shares 1,000.00 1,017.30 3.50 0.70% Class A Shares 1,000.00 1,015.90 4.70 0.94% Class B Shares 1,000.00 1,015.00 4.75 0.95% Class C Shares 1,000.00 1,013.00 8.48 1.70% Advisor Shares 1,000.00 1,014.90 6.00 1.20% Short Term Bond Institutional Shares 1,000.00 1,025.70 3.21 0.64% Class A Shares 1,000.00 1,023.30 4.41 0.88% Class C Shares 1,000.00 1,019.60 8.21 1.64% U.S. Government Bond Institutional Shares 1,000.00 1,022.20 3.46 0.69% Class A Shares 1,000.00 1,018.90 4.61 0.92% Class C Shares 1,000.00 1,017.10 8.45 1.69% Municipal Bond Institutional Shares 1,000.00 1,010.80 3.04 0.61% Class A Shares 1,000.00 1,010.60 4.24 0.85% Class B Shares 1,000.00 1,005.60 8.01 1.61% Class C Shares 1,000.00 1,006.10 8.01 1.61% Advisor Shares 1,000.00 1,009.30 5.53 1.11% Intermediate Municipal Bond Institutional Shares 1,000.00 1,010.40 3.34 0.67% Class A Shares 1,000.00 1,009.20 4.58 0.92% Class B Shares 1,000.00 1,010.20 4.64 0.93% Class C Shares 1,000.00 1,005.60 8.16 1.64% Ohio Municipal Bond Institutional Shares 1,000.00 1,012.30 3.94 0.79% Class A Shares 1,000.00 1,011.00 5.14 1.03% Class B Shares 1,000.00 1,006.50 8.91 1.79% Class C Shares 1,000.00 1,006.40 8.90 1.79% Michigan Municipal Bond Institutional Shares 1,000.00 1,013.40 3.39 0.68% Class A Shares 1,000.00 1,013.80 4.09 0.82% Class B Shares 1,000.00 1,008.40 8.37 1.68% Class C Shares 1,000.00 1,009.40 8.37 1.68% _____________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 224 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES - -------------------------------------------- The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may however use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/07 7/31/07 2/1/07 - 7/31/07 2/1/07 - 7/31/07 --------- --------- ---------------- ---------------- Small Cap Growth Institutional Shares $1,000.00 $1,019.79 $ 5.06 1.01% Class A Shares 1,000.00 1,018.60 6.26 1.25% Class B Shares 1,000.00 1,014.83 10.04 2.01% Class C Shares 1,000.00 1,014.83 10.04 2.01% Advisor Shares 1,000.00 1,017.31 7.55 1.51% Mid Cap Growth Institutional Shares 1,000.00 1,019.39 5.46 1.09% Class A Shares 1,000.00 1,018.20 6.66 1.33% Class B Shares 1,000.00 1,014.43 10.44 2.09% Class C Shares 1,000.00 1,014.43 10.44 2.09% Advisor Shares 1,000.00 1,016.91 7.95 1.59% Quality Growth Institutional Shares 1,000.00 1,019.49 5.36 1.07% Class A Shares 1,000.00 1,018.25 6.61 1.32% Class B Shares 1,000.00 1,014.48 10.39 2.08% Class C Shares 1,000.00 1,014.48 10.39 2.08% Advisor Shares 1,000.00 1,016.91 7.95 1.59% Structured Large Cap Plus Institutional Shares 1,000.00 1,020.23 4.61 0.92% Class A Shares 1,000.00 1,019.04 5.81 1.16% Class B Shares 1,000.00 1,015.27 9.59 1.92% Class C Shares 1,000.00 1,015.27 9.59 1.92% Advisor Shares 1,000.00 1,017.70 7.15 1.43% Equity Index Institutional Shares 1,000.00 1,023.85 0.95 0.19% Class A Shares 1,000.00 1,022.66 2.16 0.43% Class B Shares 1,000.00 1,018.89 5.96 1.19% Class C Shares 1,000.00 1,018.89 5.96 1.19% Advisor Shares 1,000.00 1,021.37 3.46 0.69% Select shares 1,000.00 1,023.46 1.35 0.27% Preferred Shares 1,000.00 1,023.11 1.71 0.34% Trust Shares 1,000.00 1,022.61 2.21 0.44% Balanced Institutional Shares 1,000.00 1,020.03 4.81 0.96% Class A Shares 1,000.00 1,018.84 6.01 1.20% Class B Shares 1,000.00 1,015.08 9.79 1.96% Class C Shares 1,000.00 1,015.08 9.79 1.96% Advisor Shares 1,000.00 1,017.55 7.30 1.46% Micro Cap Value Institutional Shares 1,000.00 1,018.10 6.76 1.35% Class A Shares 1,000.00 1,016.91 7.95 1.59% Class B Shares 1,000.00 1,013.14 11.73 2.35% Class C Shares 1,000.00 1,013.14 11.73 2.35% Advisor Shares 1,000.00 1,015.62 9.25 1.85% _____________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 225 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/07 7/31/07 2/1/07 - 7/31/07 2/1/07 - 7/31/07 --------- --------- ---------------- ---------------- Small Cap Value Institutional Shares $1,000.00 $1,018.84 $ 6.01 1.20% Class A Shares 1,000.00 1,017.65 7.20 1.44% Class B Shares 1,000.00 1,013.88 10.99 2.20% Class C Shares 1,000.00 1,013.88 10.99 2.20% Advisor Shares 1,000.00 1,016.36 8.50 1.70% Multi Cap Value Institutional Shares 1,000.00 1,018.89 5.96 1.19% Class A Shares 1,000.00 1,017.70 7.15 1.43% Class B Shares 1,000.00 1,013.93 10.94 2.19% Class C Shares 1,000.00 1,013.88 10.99 2.20% Advisor Shares 1,000.00 1,016.41 8.45 1.69% Disciplined Large Cap Value Institutional Shares 1,000.00 1,019.79 5.06 1.01% Class A Shares 1,000.00 1,018.65 6.21 1.24% Class B Shares 1,000.00 1,014.83 10.04 2.01% Class C Shares 1,000.00 1,014.93 9.94 1.99% Advisor Shares 1,000.00 1,017.31 7.55 1.51% LifeModel Aggressive(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.21 1.61 0.32% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.21 1.61 0.32% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Moderate(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.21 1.61 0.32% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.21 1.61 0.32% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Conservative(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08% Class A Shares 1,000.00 1,023.21 1.61 0.32% Class B Shares 1,000.00 1,019.44 5.41 1.08% Class C Shares 1,000.00 1,019.44 5.41 1.08% Advisor Shares 1,000.00 1,021.92 2.91 0.58% Strategic Income Institutional Shares 1,000.00 1,020.13 4.71 0.94% Class A Shares 1,000.00 1,018.89 5.96 1.19% Class B Shares 1,000.00 1,015.32 9.54 1.91% Class C Shares 1,000.00 1,015.32 9.54 1.91% Advisor Shares 1,000.00 1,017.80 7.05 1.41% Dividend Growth Institutional Shares 1,000.00 1,021.17 3.66 0.73% Class A Shares 1,000.00 1,019.98 4.86 0.97% Class B Shares 1,000.00 1,016.22 8.65 1.73% Class C Shares 1,000.00 1,016.22 8.65 1.73% Advisor Shares 1,000.00 1,018.74 6.11 1.22% _____________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 226 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/07 7/31/07 2/1/07 - 7/31/07 2/1/07 - 7/31/07 --------- --------- ---------------- ---------------- Technology Institutional Shares $1,000.00 $1,016.91 $ 7.95 1.59% Class A Shares 1,000.00 1,015.67 9.20 1.84% Class B Shares 1,000.00 1,011.90 12.97 2.60% Class C Shares 1,000.00 1,011.85 13.02 2.61% Advisor Shares 1,000.00 1,014.33 10.54 2.11% International Equity Institutional Shares 1,000.00 1,018.10 6.76 1.35% Class A Shares 1,000.00 1,016.86 8.00 1.60% Class B Shares 1,000.00 1,013.09 11.78 2.36% Class C Shares 1,000.00 1,013.09 11.78 2.36% Advisor Shares 1,000.00 1,015.57 9.30 1.86% High Yield Bond Institutional Shares 1,000.00 1,021.12 3.71 0.74% Class A Shares 1,000.00 1,019.93 4.91 0.98% Class B Shares 1,000.00 1,016.17 8.70 1.74% Class C Shares 1,000.00 1,016.17 8.70 1.74% Advisor Shares 1,000.00 1,018.65 6.21 1.24% Bond Institutional Shares 1,000.00 1,021.22 3.61 0.72% Class A Shares 1,000.00 1,020.03 4.81 0.96% Class B Shares 1,000.00 1,016.27 8.60 1.72% Class C Shares 1,000.00 1,016.27 8.60 1.72% Advisor Shares 1,000.00 1,018.74 6.11 1.22% Intermediate Bond Institutional Shares 1,000.00 1,021.32 3.51 0.70% Class A Shares 1,000.00 1,020.13 4.71 0.94% Class B Shares 1,000.00 1,020.08 4.76 0.95% Class C Shares 1,000.00 1,016.36 8.50 1.70% Advisor Shares 1,000.00 1,018.84 6.01 1.20% Short Term Bond Institutional Shares 1,000.00 1,021.62 3.21 0.64% Class A Shares 1,000.00 1,020.43 4.41 0.88% Class C Shares 1,000.00 1,016.66 8.20 1.64% U.S. Government Bond Institutional Shares 1,000.00 1,021.37 3.46 0.69% Class A Shares 1,000.00 1,020.23 4.61 0.92% Class C Shares 1,000.00 1,016.41 8.45 1.69% Municipal Bond Institutional Shares 1,000.00 1,021.77 3.06 0.61% Class A Shares 1,000.00 1,020.58 4.26 0.85% Class B Shares 1,000.00 1,016.81 8.05 1.61% Class C Shares 1,000.00 1,016.81 8.05 1.61% Advisor Shares 1,000.00 1,019.29 5.56 1.11% Intermediate Municipal Bond Institutional Shares 1,000.00 1,021.47 3.36 0.67% Class A Shares 1,000.00 1,020.23 4.61 0.92% Class B Shares 1,000.00 1,020.18 4.66 0.93% Class C Shares 1,000.00 1,016.66 8.20 1.64% Ohio Municipal Bond Institutional Shares 1,000.00 1,020.88 3.96 0.79% Class A Shares 1,000.00 1,019.69 5.16 1.03% Class B Shares 1,000.00 1,015.92 8.95 1.79% Class C Shares 1,000.00 1,015.92 8.95 1.79% Michigan Municipal Bond Institutional Shares 1,000.00 1,021.42 3.41 0.68% Class A Shares 1,000.00 1,020.73 4.11 0.82% Class B Shares 1,000.00 1,016.46 8.40 1.68% Class C Shares 1,000.00 1,016.46 8.40 1.68% _____________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 227 This page intentionally left blank. 228 This page intentionally left blank. 229 This page intentionally left blank. 230 This page intentionally left blank. 231 This page intentionally left blank. 232 ADDRESSES - -------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds 38 Fountain Square Plaza Cincinnati, Ohio 45202 - -------------------------------------------------------------------------------- Investment Advisor, Administrator and Accountant Fifth Third Asset Management, Inc. 38 Fountain Square Plaza Cincinnati, Ohio 45202 - -------------------------------------------------------------------------------- Sub-Advisor (International Equity) Morgan Stanley Investment Management Inc. 1221 Avenue of the Americas New York, New York 10020 - -------------------------------------------------------------------------------- Sub-Advisor (High Yield Bond) Fort Washington Investment Advisors, Inc. 420 East Fourth Street Cincinnati, Ohio 45202 - -------------------------------------------------------------------------------- Distributor ALPS Distributors, Inc. d/b/a FTAM Funds Distributor, Inc. 1290 Broadway, Suite 1100 Denver, Colorado 80203 - -------------------------------------------------------------------------------- Custodian, Sub-Accountant and Sub-Administrator State Street Bank and Trust Company 801 Pennsylvania Avenue Kansas City, Missouri 64105 - -------------------------------------------------------------------------------- Transfer and Dividend Disbursing Agent Boston Financial Data Services, Inc. 30 Dan Road Canton, Massachusetts 02021 - -------------------------------------------------------------------------------- Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP 100 East Broad Street Suite 2100 Columbus, Ohio 43215 - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS FTF770 073108 9/07 AR-STBD-07 [ ] MONEY MARKET MUTUAL FUNDS ANNUAL REPORT TO SHAREHOLDERS ----------------------------- JULY 31, 2007 FIFTH THIRD FUNDS NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-282-5706 or on the Securities and Exchange Commission's website at http://www.sec.gov. Schedules of Portfolio Investments for periods ending April 30 and October 31 are available, without charge, on the Securities and Exchange Commission's website at http://www.sec.gov. Fifth Third Funds are distributed by ALPS Distributors, Inc., member FINRA, d/b/a FTAM Funds Distributor, Inc. ALPS Distributors, Inc. and FTAM Funds Distributor, Inc. are affiliated firms through direct ownership, although ALPS Distributors, Inc. and FTAM Funds Distributor, Inc. are not affiliates of Fifth Third Bank. Fifth Third Asset Management, Inc. serves as Investment Adviser to Fifth Third Funds and receives a fee for its services. FIFTH THIRD FUNDS, LIKE ALL MUTUAL FUNDS: o ARE NOT FDIC INSURED o HAVE NO BANK GUARANTEE o MAY LOSE VALUE TABLE OF CONTENTS OUR MESSAGE TO YOU ---------------------------------------------- Economic Outlook and Commentary Section ............. 1 Manager Commentary ................ 3 Schedules of Portfolio Investments .................... 5 Statements of Assets and Liabilities ................ 26 Statements of Operations .......... 28 Statements of Changes in Net Assets .................. 30 Financial Highlights .............. 34 Notes to Financial Statements ..... 40 Report of Independent Registered Public Accounting Firm ......... 49 Supplemental Information .......... 50 Broadly diversified equity investors enjoyed strong returns over the second half of 2006 and the first two quarters of 2007. Fifth Third Funds shareholders also generally benefited from positive returns during this period. For the 12-month period ending July 31, 2007, the major stock market averages posted the following gains: o The S&P 500 Index(1) of large cap stocks returned 16.13%. o The S&P 400 Index(1) of mid cap stocks returned 16.73%. o The S&P 600(1) Index of small cap stocks returned 14.11%. o The MSCI EAFE(R) Index(1) of international stocks returned 23.91%. The outperformance by international equities reflected continued strength in overseas economies and a slowing of the economic growth rate in the U.S. Reversing a five-year trend, large capitalization stocks outgained mid and small cap stocks as investors strayed from more volatile investments amid a 2007 reassessment of risk tolerances. Another lengthy pattern changed course as growth stock returns topped value stock gains for the first time since the 2002 recovery period. Given the shifting tides of the world's equity markets, we continue to emphasize that a well-diversified approach to investing remains the preferred strategy for individual investors. A number of factors influenced the financial markets during the period, which saw the S&P 500 Index achieve a record high, but also endure some sharp downturns. Most significant were: 1. Complications in the subprime mortgage industry, where poor underwriting practices from 2005 and 2006 resulted in a growing number of home loan defaults. Conditions not only pressured the real estate market, where supply expanded and demand fell, but had a marked effect on the bond market, where many of the bad loans had been packaged into mortgage backed securities (MBS) and sold around the world. 2. A robust merger and acquisition (M&A) market, which contributed to climbing values in takeover targets and peers through the first 10 months of the period. By the end of the period, uncertainties in the bond market dampened much of the enthusiasm, especially among private equity firms that rely on debt to make large purchases. 3. Continued strength in corporate fundamentals, which at times was overshadowed by the M&A buzz. With healthy, albeit moderating, earnings growth, strong global economies to support exports and very solid balance sheets and cash flow, many companies engaged in positive capital activity such as increased dividends and share buybacks. 4. The Federal Reserve's vigilant watch over inflationary pressures, which prompted the central bank to keep its key lending rate at 5.25% for the entire period. 5. Brighter prospects for business spending offsetting a tempered outlook for consumer spending. Emboldened by solid cash positions, businesses forecast healthy spending budgets, especially in capital goods and information technology. As for consumers, although the core inflation rate remained modest, gains in gasoline and food prices weighed, especially in light of the weakening housing market. Fixed income and cash investments provided modest gains during the 12-month period, the result of strong returns through the first 10 months and challenging conditions through the closing months. The U.S. Treasury yield curve spent much of the period inverted, which occurs when short term interest rates are higher than yields on long term bonds. Some 1 economists say an inverted yield curve indicates a recession is forthcoming, but we believe the gradual slope of the inversion during the period failed to point conclusively to such a prediction. While the volatility of the final two months of the period resulted in some unsettling moments, it served as a reminder that financial markets do not move upwards in a straight line. Risk should always be a component within any investment decision, and the market should provide a premium for riskier assets. Small cap stocks, high yield bonds and low quality mortgage backed securities led the fall through June and July as many reasoned that the risk premium had narrowed too far. That said, the family of Fifth Third Funds adheres to a high quality philosophy that emphasizes stability and financial soundness in its investments. And while high quality positions are just as prone to broad market declines as low quality assets, solid fundamentals should soften the drop and better support the eventual recovery. Looking ahead, our expectations on the macro front include: o Solid growth of about 2% to 3% for the domestic economy. o Continued containment of inflationary pressures, leading to minimal advances in long term interest rates. o Steady corporate earnings growth and an emphasis, especially among larger companies, to bolster shareholder returns through increased dividend payouts and share buybacks. o Energy prices that tend to follow traditional seasonal patterns. o Following near term challenges in the capital and liquidity markets, a return to reasonable terms and rates for higher quality borrowers. o A drop in the Federal Reserve's interest rates by year-end. Through the markets twists and turns over the past 12 months, the family of Fifth Third Funds generated competitive returns for you, our shareholder. Due largely to the discipline of our managers, the family of Fifth Third Funds weathered the market turbulence well and stands well-positioned to participate in what we expect to be a recovery in the coming quarters. Of course, risks remain, but ultimately, we believe that investors should be rewarded for a patient and well-diversified approach to investing. Thank you for your confidence in Fifth Third Funds. /s/ E. Keith Wirtz E. Keith Wirtz, CFA Chief Investment Officer 1TERMS AND DEFINITIONS - -------------------------------------------------------------------------------- THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500 INDEX") IS AN INDEX OF 500 SELECTED COMMON STOCKS, MOST OF WHICH ARE LISTED ON THE NEW YORK STOCK EXCHANGE, AND IS A MEASURE OF THE U.S. STOCK MARKET AS A WHOLE. THE STANDARD AND POOR'S MIDCAP 400 INDEX ("S&P 400 INDEX") IS AN INDEX OF 400 SELECTED COMMON STOCKS THAT TRACKS U.S. FIRMS WITH MARKET CAPITALIZATIONS OF $1.5 BILLION TO $5.5 BILLION. THE STANDARD AND POOR'S SMALLCAP 600 INDEX ("S&P 600 INDEX") IS AN INDEX OF 600 SELECTED COMMON STOCKS THAT TRACKS U.S. FIRMS WITH MARKET CAPITALIZATIONS OF $300 MILLION TO $2 BILLION. THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR EAST (EAFE)(R) INDEX IS GENERALLY REPRESENTATIVE OF A SAMPLE OF COMPANIES OF THE MARKET STRUCTURE OF 20 EUROPEAN AND PACIFIC BASIN COUNTRIES. THE ABOVE INDICES DO NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING SECURITIES. 2 MANAGEMENT DISCUSSION OF FUND PERFORMANCE MONEY MARKET FUNDS For the 12-month period ending July 31, 2007, the Fifth Third Money Market Funds reported relatively stable yields on an absolute basis - the direct result of a year-long inactive monetary policy in which the Federal Reserve's Federal Open Market Committee (FOMC) maintained the Federal Funds target rate at 5.25%. Throughout the period, the FOMC and Fed Chairman Ben Bernanke reiterated that the extent and timing of future target rate adjustments remained data dependent, dictated by up-to-date economic data and inflation indicators versus FOMC forecasts. As a result, market speculation on interest rate policy and the shape of the yield curve contributed to market volatility. For instance, the interest rate curve was inverted - featuring higher short-term rates than long-term yields - for much of the period, but became more normalized with higher long-term yields during the final three months. In response, the Funds maintained a neutral to slightly longer duration strategy during the period, selectively investing in floating and fixed extension notes to capture additional yield opportunities. This strategy reflected an acknowledgment of the positive trends in economic growth and moderating inflation pressures, along with an underlying belief that housing and consumer weakness will likely cause the FOMC's next move to be a rate cut - although the timing remained uncertain. Consistent with the duration strategy, the taxable Money Market Funds continued to heavily utilize more traditional money market securities such as commercial paper, U.S. government agency discount notes and repurchase agreements, particularly in the Fifth Third Treasury Money Market Fund, the Fifth Third Government Money Market Fund and the Fifth Third Institutional Government Money Market Fund. This strategy proved effective as the Funds benefited from the frequent reinvestment of maturities and higher yielding rate resets on the floating interest rate securities. Furthermore, the additional liquidity allowed the Funds to readily cope with volatile cash flows. The Fifth Third Institutional Money Market and Fifth Third Prime Money Market Funds maintained a conservative orientation with continued emphasis on high quality security selection to achieve the principal preservation objective. In the municipal money market space, investors focused on the short end of the spectrum in order to capitalize on the modestly higher yields afforded by an inverted yield curve. Maintaining average maturities either in line or slightly shorter than the iMoneyNet+ peer group, both the Fifth Third Municipal Money Market Fund and the Fifth Third Michigan Municipal Money Market Fund1 benefited from the market trend. Both the Fifth Third Municipal Money Market Fund and the Fifth Third Michigan Municipal Money Market Fund were managed conservatively, with about 70% of holdings consisting of weekly and daily floater programs, many of which are backed by domestic and foreign banks as well as other financial institutions and corporations. The balance of the Funds' holdings generally consisted of commercial paper, notes and bonds that have a final maturity within 397 days. To capture slightly higher yields, both Funds sought smaller high quality issues, which tend to attract less demand. + iMoneyNet is a provider of money market mutual fund information and analysis. MATURITY COMPOSITION AS OF JULY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- Weighted Average Maturity# - -------------------------------------------------------------------------------- DAYS DAYS AS OF 1/31/07 AS OF 7/31/07 - -------------------------------------------------------------------------------- Fifth Third Prime 45 35 Money Market - -------------------------------------------------------------------------------- Fifth Third Institutional 43 38 MoneyMarket - -------------------------------------------------------------------------------- Fifth third Institutional 38 43 Government Money Market - -------------------------------------------------------------------------------- Fifth Third Government 39 37 Money Market - -------------------------------------------------------------------------------- Fifth Third U.S. Treasury 17 19 Money Market - -------------------------------------------------------------------------------- Fifth Third Michigan 17 14 Municipal Money Market - -------------------------------------------------------------------------------- Fifth Third Municipal 25 12 Money Market - -------------------------------------------------------------------------------- #Portfolio composition is subject to change. INVESTMENT RISK CONSIDERATIONS - -------------------------------------------------------------------------------- AN INVESTMENT IN ANY OF THE FUNDS IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY GOVERNMENT AGENCY. ALTHOUGH EACH MONEY MARKET FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN A MONEY MARKET FUND. 1The Fifth Third Michigan Municipal Money Market Fund's income may be subject to certain state and local taxes and, depending on one's tax status, the federal alternative minimum tax. Single state funds may be subject to additional risk, since issuers they invest in are more likely to be subject to the same political and/or economic risks. 3 MANAGEMENT DISCUSSION OF FUND PERFORMANCE MONEY MARKET MATURITY SCHEDULES (UNAUDITED) - -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS INSTITUTIONAL MICHIGAN PRIME INSTITUTIONAL GOVERNMENT GOVERNMENT U.S. TREASURY MUNICIPAL MUNICIPAL MONEY MONEY MONEY MONEY MONEY MONEY MONEY MARKET MARKET MARKET MARKET MARKET MARKET MARKET - ---------------------------------------------------------------------------------------------------------- Less than 8 days 44.1% 47.6% 63.5% 30.5% 87.0% 92.9% 91.4% - ---------------------------------------------------------------------------------------------------------- 8 to 14 Days 5.2% 4.8% 0.4% 7.7% 0.0% 0.0% 0.3% - ---------------------------------------------------------------------------------------------------------- 15 to 30 Days 23.7% 13.5% 9.8% 32.0% 1.9% 1.4% 2.2% - ---------------------------------------------------------------------------------------------------------- 31 to 180 Days 24.0% 30.3% 16.5% 24.8% 5.3% 2.7% 5.7% - ---------------------------------------------------------------------------------------------------------- 181 to 365 Days 3.0% 3.8% 9.8% 5.0% 5.8% 3.0% 0.4% - ---------------------------------------------------------------------------------------------------------- 366 to 397 Days 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - ---------------------------------------------------------------------------------------------------------- 4 PRIME MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- CORPORATE BONDS (15.2%) Bear Stearns Cos., Inc. (The), 7.80%, 8/15/07 $ 6,000 $ 6,005 Bear Stearns Cos., Inc. (The), 5.30%, 1/9/08 (a) 12,000 12,000 Bear Stearns Cos., Inc. (The), 4.00%, 1/31/08 7,000 6,958 Bear Stearns Cos., Inc. (The), 5.51%, 4/29/08 (a) 10,000 10,007 Bear Stearns Cos., Inc. (The), 5.40%, 8/5/09 (a) 20,000 20,000 Citigroup, Inc., 5.42%, 11/1/07 (a) 10,000 10,002 Citigroup, Inc., 3.50%, 2/1/08 10,000 9,912 Credit Suisse, 5.40%, 12/21/07 12,000 12,000 Credit Suisse USA, Inc., 4.63%, 1/15/08 7,000 6,977 General Electric Capital Corp., 3.50%, 8/15/07 4,000 3,997 Goldman Sachs Group, Inc. (The), 4.13%, 1/15/08 5,000 4,975 HSBC Finance Corp., 5.33%, 2/6/12 (a) 10,000 10,000 International Business Machines Corp., 6.45%, 8/1/07 2,010 2,010 Lehman Brothers Holdings, Inc., 4.00%, 1/22/08 5,000 4,968 Merrill Lynch & Co., Inc., 4.25%, 9/14/07 13,405 13,388 Merrill Lynch & Co., Inc., 5.30%, 4/17/12 (a) 8,000 8,000 Morgan Stanley, 5.40%, 6/3/08 (a) 15,000 15,000 Wells Fargo, 5.37%, 3/10/08 (a) 6,000 6,003 Wells Fargo & Co., 5.33%, 7/15/09 (a) (b) 25,000 25,000 ------------ TOTAL CORPORATE BONDS 187,202 ------------ MUNICIPAL BONDS (1.0%) FLORIDA (1.0%) Florida Hurricane Catastrophe Fund, Series 2006-B, 5.33%, 8/15/08, (Callable 8/15/07 @ 100) (a) 12,000 12,000 ------------ TOTAL MUNICIPAL BONDS 12,000 ------------ CERTIFICATES OF DEPOSIT (8.3%) Branch Banking & Trust Co., 5.35%, 4/23/08 15,000 15,000 Credit Suisse, 5.30%, 10/24/07 10,000 10,000 Depfa Bank PLC, 5.32%, 8/1/07 15,000 15,000 Deutsche Bank AG, 5.35%, 8/7/07 10,000 10,000 HBOS Treasury Services PLC, 5.32%, 1/18/08 5,000 5,000 Natixis, 5.34%, 8/7/07 15,000 15,000 Natixis, 5.37%, 11/13/07 10,000 10,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- CERTIFICATES OF DEPOSIT, CONTINUED SunTrust Bank, 5.29%, 10/29/07 (a) $ 5,000 $ 5,000 Toronto Dominion Bank (The), 5.36%, 12/21/07 17,000 17,001 ------------ TOTAL CERTIFICATES OF DEPOSIT 102,001 ------------ COMMERCIAL PAPER (42.3%) Allied Irish Bank, 5.27%, 8/3/07 ** (b) 27,255 27,247 Amsterdam Funding Corp., 5.29%, 8/7/07 ** (b) 15,000 14,987 Amsterdam Funding Corp., 5.28%, 8/8/07 ** (b) 25,000 24,974 Amsterdam Funding Corp., 5.28%, 8/16/07 ** (b) 15,000 14,967 Barclays PLC, 5.31%, 8/16/07 ** 15,000 14,967 Barclays PLC, 5.26%, 9/28/07 ** 20,000 19,830 Barclays PLC, 5.25%, 10/11/07 ** 10,000 9,896 Barclays PLC, 5.26%, 10/17/07 ** 10,000 9,887 BNP Paribas Financial, Inc., 5.34%, 8/1/07 ** 50,000 50,000 Cafco LLC, 5.25%, 11/1/07 ** (b) 14,890 14,690 Citigroup Funding, Inc., 5.24%, 10/24/07 ** 15,000 14,816 Citigroup Funding, Inc., 5.28%, 8/7/07 ** 5,000 4,996 Citigroup Funding, Inc., 5.30%, 8/15/07 ** 10,000 9,980 Coca-Cola Co. (The), 5.20%, 12/7/07 ** (b) 21,712 21,310 CRC Funding LLC, 5.28%, 8/24/07 ** (b) 25,000 24,916 CRC Funding LLC, 5.27%, 9/7/07 ** (b) 20,000 19,892 Falcon Asset Securitization, 5.30%, 8/27/07 ** (b) 13,040 12,990 Falcon Asset Securitization, 5.28%, 8/30/07 ** (b) 7,269 7,238 HBOS Treasury Services PLC, 5.26%, 9/10/07 ** 10,000 9,942 HBOS Treasury Services PLC, 5.25%, 10/22/07 ** 15,000 14,821 Morgan Stanley Dean Witter, 5.30%, 9/27/07 ** 5,000 4,959 Old Line Funding, 5.29%, 8/14/07 ** (b) 19,000 18,964 Park Avenue Receivable Co., 5.31%, 8/20/07 ** (b) 20,000 19,944 Park Avenue Receivable Co., 5.30%, 8/24/07 ** (b) 8,660 8,631 Prudential Funding LLC, 5.26%, 8/27/07 ** 20,000 19,924 Scotiabanc, Inc., 5.27%, 9/27/07 ** (b) 15,000 14,875 Sheffield Receivables Corp., 5.30%, 8/3/07 ** (b) 17,000 16,995 Continued 5 PRIME MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED Sheffield Receivables Corp., 5.27%, 8/13/07 ** (b) $ 20,000 $ 19,965 Societe Generale, 5.24%, 11/13/07 ** 11,700 11,523 Toyota Motor Credit Co., 5.24%, 8/17/07 ** 10,000 9,977 Windmill Funding Corp., 5.28%, 8/23/07 ** (b) 20,000 19,935 Windmill Funding Corp., 5.28%, 9/21/07 ** (b) 15,000 14,888 ------------ TOTAL COMMERCIAL PAPER 522,926 ------------ DEMAND NOTES (d) (12.3%) Beavercreek Enterprises, Series 2000, 5.38%, 3/2/20 (a) 3,925 3,925 Buckeye Corrugated, Inc., Series 1997, 5.37%, 10/1/17 (a)(b) 4,810 4,810 Bybee Foods LLC Taxable Adjustable Rate Notes, Series 2006, 5.37%, 11/1/26 (a) 1,600 1,600 Capital One Funding Corp., Series 1999-D, 5.36%, 10/1/14 (a) 1,670 1,670 Capital One Funding Corp., Series 1997-D, 5.36%, 7/2/18 (a)(b) 611 611 Capital One Funding Corp., Series 1996-H, 5.36%, 10/1/21 (a)(b) 800 800 Capital One Funding Corp., Series 2001-C, 5.36%, 1/4/27 (a) 2,252 2,252 Central Michigan Inns, 5.39%, 4/1/30 (a) 1,985 1,985 CHF - Elon LLC, Series 2005, 5.35%, 6/1/35 (a)(b) 6,450 6,450 Clare at Water Tower (The), Series 2005, 5.37%, 5/15/38 (a) 12,500 12,500 Cornerstone Funding Corp., 5.41%, 12/1/11 (a) 7,780 7,780 Cornerstone Funding Corp., Series 2003-A, 5.41%, 7/1/25 (a) 5,564 5,564 Harry W. Albright JR, Series 1996, 5.42%, 5/1/21 (a) 5,485 5,485 HWP Co., Ltd., 5.38%, 12/3/18 (a)(b) 4,120 4,120 Iowa 80 Group, Inc., 5.46%, 6/1/16 (a) 3,600 3,600 Jackson 2000 LLC, Series 1999, 5.37%, 8/2/07 (a) 8,755 8,755 Jefferson Land Development, Ltd., Series 1997, 5.43%, 10/1/16 (a)(b) 1,010 1,010 JPMorgan Chase & Co., 4.00%, 2/1/08 5,000 4,965 Landmark Medical LLC, Series 2000, 5.39%, 1/1/21 (a) 7,080 7,080 Lexington Financial Services LLC, Series 2001, 5.36%, 2/1/26 (a) 8,500 8,500 Mount Carmel East Professional Office Building III LP, Series 1994, 5.38%, 1/1/14 (a)(b) 1,415 1,415 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- DEMAND NOTES, CONTINUED Mr. K. Enterprises, Inc., Series 1999, 5.52%, 8/1/07 (a) $ 5,750 $ 5,750 New Belgium Brewing Co., Inc., Series 2000, 5.50%, 7/1/15 (a) 2,655 2,655 Northside Christian Church, Inc., 5.39%, 4/1/30 (a) 6,490 6,490 PCI Paper Conversions, Inc., Series 2000, 5.37%, 4/1/10 (a) 1,420 1,420 Pittsburgh Technical Institute, Series 1999, 5.38%, 10/1/15 (a) 9,330 9,330 Royal Town Center LLC, Series 1997, 5.37%, 10/1/57 (a)(b) 5,095 5,095 SDK Cameron LLC, Series 2005, 5.39%, 10/1/35 (a)(b) 3,185 3,185 Secor Realty, Inc., 5.38%, 4/1/20 (a) 7,320 7,320 SGS Tool Co., Series 1999, 5.38%, 12/1/12 (a) 3,600 3,600 St Andrew United Methodist Church, Series 2004, 5.37%, 7/1/29 (a) 11,435 11,435 Zeigler Realty LLC, Series 1996, 5.43%, 9/1/26 (a) 1,320 1,320 ------------ TOTAL DEMAND NOTES 152,477 ------------ MUNICIPAL COMMERCIAL PAPER (0.5%) MICHIGAN (0.5%) Michigan State, 5.41%, 10/4/07 5,770 5,770 ------------ TOTAL MUNICIPAL COMMERCIAL PAPER 5,770 ------------ MUNICIPAL DEMAND NOTES (d) (11.4%) ALABAMA (0.6%) Albertville Industrial Development Board, 5.37%, 8/2/07, (LOC: Regions Bank) (a) 7,530 7,530 ------------ ALASKA (0.3%) Four Dam Pool Power Agency, Series B, 5.35%, 8/2/07, (LOC: Dexia Credit Local) (a) 3,280 3,280 ------------ CALIFORNIA (3.2%) County of Riverside, CP, 5.35%, 8/1/07, (LOC: State Street B&T Co.) (a) 6,800 6,800 County of Sacramento, 5.35%, 8/1/07, (LOC: Bayerische Landesbank) (a) 32,430 32,430 ------------ 39,230 ------------ Continued 6 PRIME MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED COLORADO (1.3%) Housing and Finance Authority, Multi- Family, MBIA, 5.35%, 8/1/07 (a) $ 14,000 $ 14,000 Pueblo Housing Authority, 5.50%, 8/2/07, (LOC: Wells Fargo Bank NA) (a)(b) 1,735 1,735 ------------ 15,735 ------------ GEORGIA (0.8%) Columbus Development Authority, Litho-Krome Project, 5.35%, 8/2/07, (LOC: Bank of America NA) (a) 10,125 10,125 ------------ IOWA (0.5%) Dallas County Industrial Development, Sioux City Brick and Tile, 5.39%, 8/2/07, (LOC: Firstar Bank NA) (a) 6,980 6,980 ------------ KENTUCKY (0.6%) County of Webster Industrial, Green River Project, 5.34%, 8/2/07, (LOC: Regions Bank) (a) 7,400 7,400 ------------ MULTI (0.3%) Revenue Bond Certificate Series Trust Various States, 5.52%, 8/2/07 (a)(b) 3,690 3,690 ------------ NEW YORK (1.0%) New York City Housing Development Corp., Multi-Family Housing, Series A, 5.30%, 8/1/07, (LOC: Bayerische Landesbank) (a) 12,255 12,255 ------------ NORTH CAROLINA (1.1%) Roman Catholic Diocese of Raleigh, Series A, 5.37%, 8/2/07, (LOC: Bank of America NA) (a) 13,495 13,495 ------------ PENNSYLVANIA (0.2%) Allegheny County Industrial Development Authority, 5.38%, 8/2/07, (LOC: National City Bank PA) (a) 2,450 2,450 ------------ UTAH (0.2%) Housing Corp., Multi-Family Housing, 5.52%, 8/2/07 (a) 2,061 2,061 ------------ WASHINGTON (1.3%) State Housing Finance Commission, Eaglepointe Apartments, 5.52%, 8/2/07 (a) 1,610 1,610 State Housing Finance Commission, Monticello Park Project, FNMA, 5.34%, 8/2/07 (a) 3,760 3,760 State Housing Finance Commission, Skyline At First, 5.37%, 8/2/07, (LOC: Bank of America NA) (a) 11,100 11,100 ------------ 16,470 ------------ TOTAL MUNICIPAL DEMAND NOTES 140,701 ------------ Continued SHARES VALUE - ----------------------------------------------------------------------- MONEY MARKETS (c) (0.2%) AIM STIT Liquid Assets Portfolio 1,244,525 $ 1,245 Goldman Sachs Financial Square Funds - Prime Obligations Fund 1,232,019 1,232 ------------ TOTAL MONEY MARKETS 2,477 ------------ PRINCIPAL AMOUNT - ----------------------------------------------------------------------- REPURCHASE AGREEMENTS (9.0%) Deutsche Bank, 5.29%, 8/1/07, (Proceeds at maturity, $90,013, Collateralized by various U.S. Government Agency Securities, 2.50%-5.50%, 6/15/08-10/19/16, value $91,800) $ 90,000 90,000 UBS Investment Bank, 5.26%, 8/1/07, (Proceeds at maturity, $21,490, Collateralized by various U.S. Government Agency Securities, 0.00%-5.40%, 8/31/07-10/26/11, value $21,921) 21,487 21,487 ------------ TOTAL REPURCHASE AGREEMENTS 111,487 ------------ TOTAL INVESTMENTS (COST $1,237,041)+ - 100.2% 1,237,041 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (2,921) ------------ NET ASSETS - 100.0% $ 1,234,120 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund/portfolio. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Portfolio Investments: CP - Certificates of Participation FNMA - Federal National Mortgage Association LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance See notes to schedules of portfolio investments and notes to financial statements. 7 INSTITUTIONAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- CORPORATE BONDS (15.2%) American Express Co., 3.75%, 11/20/07 $ 8,210 $ 8,171 Bank One NA, 3.70%, 1/15/08 5,645 5,601 Bear Stearns Cos., Inc. (The), 7.80%, 8/15/07 12,490 12,501 Bear Stearns Cos., Inc. (The), 5.30%, 1/9/08 (a) 18,000 18,000 Bear Stearns Cos., Inc. (The), 4.00%, 1/31/08 10,328 10,266 Bear Stearns Cos., Inc. (The), 5.51%, 4/29/08 (a) 30,000 30,026 Bear Stearns Cos., Inc. (The), 5.40%, 8/5/09 (a) 16,000 16,000 Citigroup, Inc., 5.42%, 11/1/07 (a) 10,000 10,002 Citigroup, Inc., 3.50%, 2/1/08 10,000 9,912 Credit Suisse, 5.40%, 12/21/07 15,300 15,300 Credit Suisse USA, Inc., 4.63%, 1/15/08 7,000 6,977 General Electric Capital Corp., 5.41%, 1/3/08 (a) 25,000 25,011 Goldman Sachs Group, Inc. (The), 5.49%, 10/5/07 (a) 20,000 20,006 HSBC Finance Corp., 4.13%, 3/11/08 5,000 4,962 HSBC Finance Corp., 5.33%, 2/6/12 (a) 15,000 15,000 International Business Machines Corp., 6.45%, 8/1/07 2,000 2,000 JPMorgan Chase & Co., 4.00%, 2/1/08 7,000 6,950 Lehman Brothers Holdings, Inc., 4.00%, 1/22/08 6,500 6,459 M&I Marshall & Ilsley Bank, 4.13%, 9/4/07 14,670 14,655 M&I Marshall & Ilsley Bank, 3.80%, 2/8/08 6,385 6,337 Merrill Lynch & Co., Inc., 5.30%, 4/17/12 (a) 18,000 18,000 Merrill Lynch & Co., Inc., Series B, 3.38%, 9/14/07 11,428 11,402 Merrill Lynch & Co., Inc., Series C, 5.49%, 10/19/07 (a) 5,000 5,002 US Bank NA, 3.70%, 8/1/07 5,500 5,500 Wells Fargo & Co., 5.42%, 9/28/07 (a) 8,000 8,001 Wells Fargo & Co., 5.35%, 7/15/09 (a) (b) 10,000 10,000 World Savings Bank FSB, 4.13%, 3/10/08 12,625 12,530 ------------ TOTAL CORPORATE BONDS 314,571 ------------ U.S. GOVERNMENT AGENCIES (0.8%) FEDERAL HOME LOAN BANK (0.4%) 3.50%, 2/11/08 8,000 7,922 ------------ FREDDIE MAC (0.4%) 5.32%, 1/15/42 (a) 7,687 7,687 ------------ TOTAL U.S. GOVERNMENT AGENCIES 15,609 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- CERTIFICATES OF DEPOSIT (10.4%) Bank of Montreal, 5.32%, 1/22/08 $ 10,000 $ 10,000 Bank of Nova Scotia, 5.21%, 10/4/07 11,000 10,997 Barclays Bank PLC, 5.31%, 10/19/07 4,930 4,930 Branch Banking & Trust Co., 5.35%, 4/23/08 10,000 10,000 Citibank, 5.32%, 9/14/07 15,000 15,000 Credit Suisse, 5.30%, 10/24/07 15,000 15,000 Deutsche Bank AG, 5.35%, 8/7/07 20,000 20,000 Deutsche Bank AG, 5.31%, 10/11/07 15,000 15,000 Deutsche Bank AG, 5.33%, 11/13/07 20,000 20,000 Deutsche Bank AG, 5.35%, 4/14/08 10,000 10,000 HBOS Treasury Services PLC, 5.32%, 1/18/08 10,000 10,000 Natixis, 5.34%, 8/7/07 20,000 20,000 Natixis, 5.37%, 11/13/07 15,000 15,000 Societe Generale, 5.27%, 9/21/07 (a) 20,000 19,999 Toronto Dominion Bank (The), 5.36%, 12/21/07 20,000 20,001 ------------ TOTAL CERTIFICATES OF DEPOSIT 215,927 ------------ COMMERCIAL PAPER (40.2%) ABN AMRO, 5.36%, 8/6/07 ** 15,000 14,989 Amsterdam Funding Corp., 5.29%, 8/7/07 ** (b) 20,000 19,982 Amsterdam Funding Corp., 5.28%, 8/8/07 ** (b) 25,000 24,974 Amsterdam Funding Corp., 5.28%, 8/16/07 ** (b) 25,100 25,045 Amsterdam Funding Corp., 5.29%, 9/19/07 ** (b) 15,000 14,892 BankAmerica Corp., 5.26%, 9/21/07 ** 8,300 8,238 BankAmerica Corp., 5.32%, 9/26/07 ** 25,000 24,797 Barclays PLC, 5.37%, 8/3/07 ** 25,000 24,993 Barclays PLC, 5.25%, 9/7/07 ** 15,000 14,919 Barclays PLC, 5.25%, 10/11/07 ** 20,000 19,793 Barclays PLC, 5.26%, 10/17/07 ** 15,000 14,831 Benedictine health System, 5.27%, 9/12/07 ** 37,455 37,225 BNP Paribas Financial, Inc., 5.34%, 8/1/07 ** 50,000 50,000 Cafco LLC, 5.25%, 11/1/07 ** (b) 12,000 11,839 Citigroup Funding, Inc., 5.35%, 8/7/07 ** 20,000 19,983 Citigroup Funding, Inc., 5.37%, 8/15/07 ** 10,000 9,980 Citigroup Funding, Inc., 5.38%, 9/13/07 ** 15,000 14,906 CRC Funding LLC, 5.26%, 8/9/07 ** (b) 20,000 19,977 CRC Funding LLC, 5.27%, 9/7/07 ** (b) 20,000 19,892 Depfa Bank PLC, 5.32%, 8/1/07 10,000 10,000 Dexia Delaware LLC, 5.30%, 8/2/07 ** 11,100 11,098 Falcon Asset Securitization, 5.28%, 8/6/07 ** (b) 25,211 25,193 Falcon Asset Securitization, 5.28%, 8/30/07 ** (b) 10,000 9,957 Continued 8 INSTITUTIONAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED HBOS Treasury Services PLC, 5.26%, 9/10/07 ** $ 27,985 $ 27,822 HBOS Treasury Services PLC, 5.25%, 10/22/07 ** 25,000 24,701 Morgan Stanley Dean Witter, 5.37%, 9/27/07 ** 15,000 14,876 Old Line Funding, 5.29%, 8/10/07 ** (b) 19,000 18,975 Old Line Funding, 5.27%, 8/22/07 ** (b) 20,599 20,536 Park Avenue Receivable Co., 5.27%, 8/14/07 ** (b) 35,000 34,933 Park Avenue Receivable Co., 5.31%, 8/20/07 ** (b) 20,000 19,944 Park Avenue Receivable Co., 5.30%, 8/24/07 ** (b) 10,000 9,966 Prudential Funding LLC, 5.26%, 8/27/07 ** 15,000 14,943 Purdue Research Funding, 5.33%, 8/30/07 11,950 11,950 Salvation Army Eastern Territory (The), 5.35%, 8/1/07 19,765 19,765 San Jose International Airport, 5.30%, 8/23/07 ** 11,131 11,095 Scotiabanc, Inc., 5.27%, 9/27/07 ** (b) 10,000 9,917 Sheffield Receivables Corp., 5.30%, 8/3/07 ** (b) 20,000 19,994 Sheffield Receivables Corp., 5.27%, 9/21/07 ** (b) 10,000 9,925 Societe Generale, 5.37%, 8/1/07 ** 40,000 40,000 Societe Generale, 5.24%, 10/9/07 ** 14,070 13,929 Societe Generale, 5.37%, 11/1/07 ** 15,000 14,802 Toyota Motor Credit Co., 5.31%, 8/17/07 ** 15,000 14,966 UBS Financial, 5.30%, 8/2/07 ** 4,900 4,899 UBS Financial, 5.36%, 8/23/07 ** 15,000 14,952 Windmill Funding Corp., 5.28%, 9/21/07 ** (b) 10,000 9,925 ------------ TOTAL COMMERCIAL PAPER 830,318 ------------ DEMAND NOTES (d) (3.8%) Appletree Pptys LLC, 5.35%, 7/1/26 5,645 5,645 Baldwin County Sewer Service LLC, 5.37%, 7/1/28 (a) 6,265 6,265 Capital Markets Access Co. LC, Series 2005, 5.37%, 11/1/30 (a) 7,205 7,205 Capital One Funding Corp., Series 2001-A, 5.33%, 4/1/26 (a) 3,021 3,021 Capital One Funding Corp., Series 2001-D, 5.33%, 8/2/21 (a) 519 519 CHF - Elon LLC, Series 2005, 5.35%, 6/1/35 (a)(b) 6,950 6,950 Cornerstone Funding Corp., 5.41%, 11/1/23 (a) 4,235 4,235 Cornerstone Funding Corp., Series 2003-H, 5.41%, 1/1/34 (a) 4,113 4,113 Foster/Schweihofer Real Estate Co. LLC, Series 2003, 5.39%, 9/20/33 (a) 7,215 7,215 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- DEMAND NOTES, CONTINUED Gulf Gate Apartments, 5.40%, 9/1/28 (a)(b) $ 4,000 $ 4,000 J&S Properties, Inc., Series 2006, 5.37%, 8/2/07 (a) 3,325 3,325 McCullough Snappy Service Oil, 5.37%, 8/1/21 (a)(b) 2,720 2,720 Metaltec Steel Abrasive Co., Series 2004, 5.35%, 11/1/34 (a) 4,240 4,240 Northport Baptist Church, Series 2004, 5.37%, 9/1/24 (a) 2,900 2,900 Praise Tabernacle Outreach, 5.37%, 6/1/24 (a) 3,440 3,440 Sioux City Brick & Tile Co., 5.35%, 12/1/36 (a)(b) 12,250 12,250 ------------ TOTAL DEMAND NOTES 78,043 ------------ MUNICIPAL COMMERCIAL PAPER (0.7%) MICHIGAN (0.7%) Michigan State, 5.41%, 10/4/07 15,000 15,000 ------------ TOTAL MUNICIPAL COMMERCIAL PAPER 15,000 ------------ MUNICIPAL DEMAND NOTES (d) (14.1%) ARKANSAS (0.8%) Northwest Regional Airport Authority, Series A, 5.35%, 8/2/07, (LOC: Regions Bank) (a) 15,725 15,725 Northwest Regional Airport Authority, Series B, 5.35%, 8/2/07, (LOC: Regions Bank) (a) 630 630 ------------ 16,355 ------------ CALIFORNIA (1.2%) County of Sacramento, 5.35%, 8/1/07, (LOC: Bayerische Landesbank (a) 5,000 5,000 Kern Water Bank Authority, Series B, 5.40%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 4,348 4,348 Sacramento County Housing Authority, Multi-Family, Natomas Park Apartments, FNMA, 5.35%, 8/2/07 (a) 1,750 1,750 Saint Michaels Episcopal Day School, 5.43%, 8/1/07, (LOC: U.S. Bank NA) (a) 1,835 1,835 San Jose Financing Authority, Hayes Mansion Phase B, AMBAC, 5.35%, 8/1/07 (a) 7,900 7,900 Statewide Communities Development Authority, Multi-Family Housing, FNMA, 5.35%, 8/2/07 (a) 1,100 1,100 Statewide Communities Development Authority, Multi-Family, Valley Palms Apartments, FNMA, 5.33%, 5/15/35 (a) 2,545 2,545 ------------ 24,478 ------------ COLORADO (0.7%) Housing and Finance Authority, Multi-Family, MBIA, 5.35%, 8/1/07 (a) 14,000 14,000 ------------ Continued 9 INSTITUTIONAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED FLORIDA (1.2%) City of Homestead, Speedway Project, 5.36%, 8/1/07, (LOC: SunTrust Bank)(a) $ 8,590 $ 8,590 Florida Hurricane Catastrophe Fund, Series 2006-B, 5.33%, 8/15/08, (Callable 8/15/07 @ 100) (a) 15,000 15,000 ------------ 23,590 ------------ GEORGIA (0.8%) Augusta Housing Authority, Multi-Family, Westbury Creek Apartments, FNMA, 5.42%, 8/1/07 (a) 500 500 Georgia Municipal Gas Authority, 5.35%, 8/2/07, (LOC: Wachovia Bank NA) (a) 14,765 14,765 ------------ 15,265 ------------ ILLINOIS (0.6%) Finance Authority, Fairview Ministries, Inc., 5.37%, 8/2/07, (LOC: LaSalle Bank NA) (a) 1,120 1,120 Finance Authority, Franciscan Communities, Series B, 5.37%, 8/2/07, (LOC: LaSalle Bank NA) (a) 12,000 12,000 ------------ 13,120 ------------ INDIANA (1.8%) City of Indianapolis Economic Development, Multi-Family Housing, Series B, 5.37%, 8/2/07, (LOC: Federal Home Loan Bank) (a) 978 978 Health Facility Financing Authority, Clark Memorial Hospital, 5.36%, 8/2/07, (LOC: Bank One NA) (a) 3,925 3,925 Health Facility Financing Authority, Community Foundation of Northwest Indiana, Series B, 5.37%, 8/2/07, (LOC: LaSalle Bank NA) (a) 23,275 23,275 Terre Haute, Westminister Village, 5.39%, 8/2/07, (LOC: Sovereign Bank FSB) (a) 9,300 9,300 ------------ 37,478 ------------ KENTUCKY (0.2%) Boone County, Northern Kentucky University Metropolitan Education and Training Services Center Project, 5.48%, 8/2/07, (LOC: U.S. Bank NA) (a) 5,050 5,050 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MARYLAND (1.8%) Health & Higher Educational Facilities Authority, Adventist Healthcare, 5.37%, 8/2/07, (LOC: LaSalle Bank NA) (a) $ 19,060 $ 19,060 Health & Higher Educational Facilities Authority, Charlestown Community, Series B, 5.37%, 8/1/07, (LOC: Bank of America NA) (a) 18,700 18,700 ------------ 37,760 ------------ MICHIGAN (0.2%) Canton Charter Township, GO, 5.42%, 8/1/07, (LOC: Comerica Bank) (a) 1,500 1,500 Charter Township of Ypsilanti Capital Improvements, GO, Series B, 5.42%, 8/1/07, (LOC: Comerica Bank) (a) 3,340 3,340 ------------ 4,840 ------------ MINNESOTA (0.2%) City of Plymouth, Carlson Center Project, 5.38%, 8/2/07, (LOC: U.S. Bank NA) (a) 1,000 1,000 St Paul Port Authority, Series S, 5.48%, 8/1/07, (LOC: Dexia Credit Local) (a) 3,495 3,495 ------------ 4,495 ------------ MISSISSIPPI (1.0%) Business Finance Corp., Cellular South, Inc., 5.35%, 8/2/07, (LOC: Bank of America NA) (a)(b) 13,000 13,000 Business Finance Corp., Deuce McAllister Motors, 5.37%, 8/2/07, (LOC: First Tennessee Bank) (a) 7,225 7,225 ------------ 20,225 ------------ MISSOURI (0.4%) Kansas City Industrial Development Authority, Downtown Arena, AMBAC, 5.35%, 8/1/07 (a) 8,925 8,925 ------------ NEBRASKA (0.6%) City of Omaha, Riverfront Development, AMBAC, 5.37%, 8/1/07 (a) 11,765 11,765 ------------ NEW MEXICO (0.2%) City of Albuquerque Industrial, KTECH Corp. Project, 5.40%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 3,460 3,460 ------------ NEW YORK (0.7%) New York City Housing Development Corp., Multi-Family Housing, Series A, 5.30%, 8/1/07, (LOC: Bayerische Landesbank) (a) 14,700 14,700 ------------ Continued 10 INSTITUTIONAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED NORTH CAROLINA (0.3%) Roman Catholic Diocese of Raleigh, Series A, 5.37%, 8/2/07, (LOC: Bank of America NA) (a) $ 7,220 $ 7,220 ------------ OHIO (0.8%) Air Quality Development Authority, Steel Corp., Series B, 5.35%, 8/1/07, (LOC: ABN Amro Bank NV) (a) 13,000 13,000 County of Cuyahoga Health Care Facilities, Franciscan Communities, 5.37%, 8/2/07, (LOC: LaSalle Bank NA) (a) 2,535 2,535 ------------ 15,535 ------------ PENNSYLVANIA (0.2%) Berks County Industrial Development Authority, Lebanon Valley Mall, 5.39%, 8/1/07, (LOC: First Union National Bank) (a)(b) 1,300 1,300 Berks County Municipal Authority, Phoebe-Devitt Homes, Series C, 5.37%, 8/2/07, (LOC: Sovereign Bank FSB) (a) 2,830 2,830 ------------ 4,130 ------------ UTAH (0.1%) Tooele City Industrial Development, Series A, 5.38%, 8/2/07, (LOC: U.S. Bank NA) (a) 2,100 2,100 ------------ WASHINGTON (0.2%) State Housing Finance Commission, Multi-Family, Granite Falls Retirement Plaza, 5.33%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 1,115 1,115 State Housing Finance Commission, Multi-Family, Sir Summer Ridge Associates, 5.48%, 8/1/07, (LOC: U.S. Bank NA) (a) 695 695 State Housing Finance Commission, Multi-Family, Vintage At Everett, FNMA, 5.34%, 8/2/07 (a) 2,000 2,000 ------------ 3,810 ------------ WISCONSIN (0.1%) Health & Educational Facilities Authority, Upland Hills, Series D, 5.34%, 8/1/07, (LOC: Allied Irish Bank PLC) (a) 2,990 2,990 ------------ TOTAL MUNICIPAL DEMAND NOTES 291,291 ------------ Continued SHARES VALUE - ----------------------------------------------------------------------- MONEY MARKETS (c) (0.2%) AIM STIT Liquid Assets Portfolio 2,698,684 2,699 Goldman Sachs Financial Square Funds - Prime Obligations Fund 1,753,176 1,753 ------------ TOTAL MONEY MARKETS 4,452 ------------ PRINCIPAL AMOUNT ------------ REPURCHASE AGREEMENTS (14.6%) Deutsche Bank, 5.29%, 8/1/07, (Proceeds at maturity, $200,029, Collateralized by various U.S. Government Agency Securities, 0.00%-5.40%, 8/22/07-11/15/21, value $204,000) $ 200,000 $ 200,000 UBS Investment Bank, 5.26%, 8/1/07, (Proceeds at maturity, $101,175, Collateralized by various U.S. Government Agency Securities, 0.00%-7.63%, 8/3/07-12/20/16, value $103,188) 101,160 101,160 ------------ TOTAL REPURCHASE AGREEMENTS 301,160 ------------ TOTAL INVESTMENTS (COST $2,066,371)+ - 100.0% 2,066,371 LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (542) ------------ NET ASSETS - 100.0% $ 2,065,829 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund/portfolio. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Portfolio Investments: AMBAC - American Municipal Bond Assurance Corp. FNMA - Federal National Mortgage Association GO - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance See notes to schedules of portfolio investments and notes to financial statements. 11 INSTITUTIONAL GOVERNMENT MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES (46.1%) FANNIE MAE (10.4%) 4.20%, 8/1/07 $ 3,500 $ 3,500 4.75%, 8/3/07 2,505 2,505 4.88%, 8/27/07 2,535 2,534 5.18%, 9/5/07 ** 6,000 5,970 5.00%, 9/14/07 2,500 2,499 5.18%, 9/21/07 ** 3,540 3,515 5.18%, 9/26/07 ** 4,718 4,680 3.13%, 10/26/07 500 497 5.29%, 12/12/07 ** 5,500 5,396 5.10%, 12/26/07 ** 10,000 9,792 5.20%, 12/28/07 (a) 7,500 7,499 5.30%, 1/8/08 5,000 5,000 3.80%, 1/18/08 3,210 3,188 4.75%, 2/1/08 5,450 5,435 5.40%, 2/1/08 3,545 3,547 5.75%, 2/15/08 10,301 10,324 5.00%, 2/27/08 3,150 3,147 5.13%, 2/28/08 3,500 3,496 4.20%, 3/24/08 1,365 1,356 6.00%, 5/15/08 5,000 5,026 ------------ 88,906 ------------ FEDERAL FARM CREDIT BANK (0.5%) 2.80%, 3/25/08 4,500 4,431 ------------ FEDERAL HOME LOAN BANK (13.6%) 5.25%, 8/10/07 4,000 4,000 3.13%, 8/15/07 1,700 1,699 3.50%, 9/12/07 4,000 3,992 3.38%, 9/14/07 1,690 1,686 4.30%, 9/20/07 4,305 4,298 5.25%, 10/3/07 3,825 3,825 4.13%, 10/19/07 3,000 2,992 5.25%, 10/22/07 4,000 4,000 5.26%, 11/1/07 2,750 2,750 5.00%, 11/21/07 8,250 8,242 3.25%, 12/17/07 2,895 2,873 4.10%, 12/27/07 2,000 1,991 5.25%, 1/10/08 (a) 15,000 14,988 4.75%, 1/11/08 1,500 1,497 5.13%, 1/25/08 5,045 5,041 5.24%, 2/7/08 (a) 13,730 13,717 5.00%, 2/29/08 2,010 2,007 4.00%, 3/10/08 3,990 3,959 5.17%, 3/14/08 (a) 15,000 14,997 2.90%, 3/24/08 2,000 1,969 3.38%, 3/26/08 3,000 2,963 4.13%, 4/18/08 5,405 5,360 3.62%, 4/25/08 2,000 1,975 5.00%, 5/30/08 5,000 4,989 ------------ 115,810 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED FREDDIE MAC (18.9%) 3.75%, 8/3/07 $ 1,100 $ 1,100 4.25%, 8/15/07 500 500 4.00%, 8/17/07 19,228 19,217 4.50%, 8/22/07 4,870 4,868 3.38%, 8/23/07 5,000 4,994 5.18%, 9/10/07 ** 5,737 5,704 5.19%, 9/17/07 ** 3,970 3,944 5.17%, 9/27/07 (a) 10,000 10,000 5.15%, 10/26/07 ** 6,000 5,926 5.14%, 10/29/07 ** 8,473 8,365 5.14%, 11/13/07 ** 10,000 9,852 4.38%, 11/16/07 1,000 997 5.12%, 12/3/07 ** 3,157 3,101 3.65%, 1/23/08 1,000 992 3.63%, 2/15/08 708 702 3.25%, 2/25/08 6,000 5,931 5.17%, 3/26/08 (a) 20,000 19,995 5.36%, 3/27/08 5,000 5,000 3.35%, 4/1/08 2,925 2,887 3.50%, 5/21/08 5,000 4,916 5.32%, 8/15/21 (a) 2,911 2,911 5.32%, 1/15/42 (a) 24,023 24,023 5.32%, 10/15/45 (a) 15,846 15,846 ------------ 161,771 ------------ OVERSEAS PRIVATE INVESTMENT CORP. (2.7%) 4.97%, 1/15/09, Series 165A (a) (b) 7,725 7,725 5.30%, 12/31/10, Series 499 (a) 15,000 15,000 ------------ 22,725 ------------ TOTAL U.S. GOVERNMENT AGENCIES 393,643 ------------ SHARES - ----------------------------------------------------------------------- MONEY MARKETS (c) (0.1%) AIM STIT Government & Agency Portfolio 1,198,476 1,199 Goldman Sachs Financial Square Government Fund 4,342 4 ------------ TOTAL MONEY MARKETS 1,203 ------------ PRINCIPAL AMOUNT ------------ REPURCHASE AGREEMENTS (53.7%) Bank of America Securities, LLC, 5.25%, 8/1/07, (Proceeds at maturity, $85,012, Collateralized by Federal National Mortgage Association, 0.00%, 8/15/07, value $86,701) $ 85,000 85,000 Continued 12 INSTITUTIONAL GOVERNMENT MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- REPURCHASE AGREEMENTS, CONTINUED Deutsche Bank, 5.29%, 8/1/07, (Proceeds at maturity, $180,026, Collateralized by various U.S. Government Agency Securities, 0.00%-5.77%, 8/3/07-3/23/18, value $183,602) $ 180,000 $ 180,000 UBS Investment Bank, 5.26%, 8/1/07, (Proceeds at maturity, $194,212, Collateralized by various U.S. Government Agency Securities, 0.00%-7.63%, 8/8/07-11/29/19, value $198,069) 194,184 194,184 ------------ TOTAL REPURCHASE AGREEMENTS 459,184 ------------ TOTAL INVESTMENTS (COST $854,030)+ - 99.9% 854,030 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 833 ------------ NET ASSETS - 100.0% $ 854,863 ============ Continued NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund/portfolio. See notes to schedules of portfolio investments and notes to financial statements. 13 GOVERNMENT MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES (95.1%) FEDERAL FARM CREDIT BANK (22.1%) 5.16%, 8/2/07 ** $ 5,535 $ 5,534 5.15%, 8/7/07 ** 10,000 9,991 2.88%, 8/9/07 500 500 2.63%, 9/17/07 1,000 997 5.15%, 9/24/07 ** 5,000 4,961 5.20%, 11/6/07 (a) 15,000 15,000 3.63%, 1/4/08 1,000 993 5.19%, 1/25/08 (a) 10,000 10,000 5.18%, 4/28/08 (a) 3,500 3,499 2.82%, 5/15/08 1,000 981 ------------ 52,456 ------------ FEDERAL HOME LOAN BANK (73.0%) 5.15%, 8/1/07 ** 8,604 8,604 5.15%, 8/3/07 ** 10,000 9,997 4.25%, 8/8/07 2,200 2,200 5.15%, 8/8/07 ** 8,000 7,992 5.17%, 8/10/07 ** 6,700 6,691 5.25%, 8/10/07 1,000 1,000 3.13%, 8/15/07 1,000 999 3.75%, 8/15/07 1,675 1,674 5.16%, 8/15/07 ** 5,000 4,990 6.83%, 8/17/07 ** 11,058 11,033 4.88%, 8/22/07 1,000 1,000 5.15%, 8/22/07 ** 11,986 11,950 5.15%, 8/24/07 ** 10,000 9,967 5.25%, 8/28/07 ** 3,797 3,782 5.15%, 9/12/07 ** 2,500 2,485 3.38%, 9/14/07 6,995 6,979 4.25%, 9/14/07 2,500 2,497 5.14%, 9/17/07 ** 3,810 3,784 5.14%, 9/19/07 ** 5,000 4,965 5.15%, 9/21/07 ** 2,835 2,814 5.23%, 9/28/07 ** 2,000 1,984 5.25%, 10/3/07 1,000 1,000 5.17%, 10/10/07 ** 1,488 1,473 5.14%, 10/15/07 ** 2,334 2,309 5.14%, 10/17/07 ** 2,563 2,535 4.13%, 10/19/07 840 838 3.50%, 10/22/07 1,000 996 4.13%, 10/26/07 985 982 5.26%, 11/1/07 1,000 1,000 3.50%, 11/15/07 1,000 995 5.24%, 11/15/07 (a) 10,000 10,000 3.00%, 12/12/07 1,000 992 5.20%, 1/10/08 (a) 9,000 8,998 4.63%, 1/18/08 1,500 1,495 5.50%, 1/28/08 2,530 2,533 4.85%, 2/6/08 820 818 4.63%, 2/8/08 1,215 1,211 3.38%, 2/15/08 4,790 4,742 4.13%, 2/15/08 1,000 993 4.50%, 2/15/08 500 498 2.75%, 3/14/08 2,700 2,658 Continued 14 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED FEDERAL HOME LOAN BANK, CONTINUED 5.17%, 3/14/08 (a) $ 15,000 $ 14,997 4.43%, 4/7/08 1,100 1,086 4.60%, 4/11/08 955 950 4.13%, 4/18/08 2,000 1,983 ------------ 173,469 ------------ TOTAL U.S. GOVERNMENT AGENCIES 225,925 ------------ SHARES ------------ MONEY MARKETS (b) (4.8%) AIM STIT Government TaxAdvantage Portfolio 2,965,351 2,965 Goldman Sachs Financial Square Federal Fund 8,484,472 8,485 ------------ TOTAL MONEY MARKETS 11,450 ------------ TOTAL INVESTMENTS (COST $237,375)+ - 99.9% 237,375 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 305 ------------ NET ASSETS - 100.0% $ 237,680 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Investment is in Institutional Shares of underlying fund/portfolio. See notes to schedules of portfolio investments and notes to financial statements. 14 U.S. TREASURY MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- TREASURY BILL (2.4%) 4.95%, 9/6/07 ** $ 25,000 $ 24,878 ------------ TOTAL TREASURY BILLS 24,878 ------------ TREASURY NOTES (10.7%) 6.13%, 8/15/07 20,000 20,008 4.25%, 10/31/07 30,000 29,949 4.38%, 1/31/08 10,000 9,967 4.63%, 2/29/08 10,000 9,977 4.88%, 4/30/08 30,000 29,955 3.75%, 5/15/08 10,000 9,906 ------------ TOTAL TREASURY NOTES 109,762 ------------ SHARES ------------ MONEY MARKETS (a) (0.2%) AIM STIT Treasury Portfolio 1,103,872 1,104 Goldman Sachs Financial Square Treasury Obligations Fund 1,287,327 1,287 ------------ TOTAL MONEY MARKETS 2,391 ------------ PRINCIPAL AMOUNT ------------ REPURCHASE AGREEMENTS (87.0%) ABN AMRO, 5.08%, 8/1/07, (Proceeds at maturity, $215,030, Collateralized by various U.S. Treasury Securities, 4.75%-8.88%, 6/30/08-2/15/37, value $219,300) $ 215,000 215,000 BMO Nesbitt Burns, 5.08%, 8/1/07, (Proceeds at maturity, $225,032, Collateralized by various U.S. Treasury Securities, 3.13%-5.50%, 10/15/08-4/15/29, value $229,500) 225,000 225,000 Deutsche Bank, 5.12%, 8/1/07, (Proceeds at maturity, $235,033, Collateralized by various U.S. Treasury Securities, 3.00%-3.63%, 7/15/12-4/15/28, value $239,701) 235,000 235,000 UBS Investment Bank, 5.11%, 8/1/07, (Proceeds at maturity, $222,641, Collateralized by various U.S. Treasury Securities, 2.00%-9.13%, 7/15/12-2/15/20, value $227,065) 222,609 222,609 ------------ TOTAL REPURCHASE AGREEMENTS 897,609 ------------ TOTAL INVESTMENTS (COST $1,034,640)+ - 100.3% 1,034,640 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (3,054) ------------ NET ASSETS - 100.0% $ 1,031,586 ============ Continued NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. ** Rate represents the effective yield at purchase. (a) Investment is in Institutional Shares of underlying fund/portfolio. See notes to schedules of portfolio investments and notes to financial statements. 15 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL BONDS (12.2%) MICHIGAN (9.7%) Detroit School District, Student Aid, 4.50%, 8/21/07 $ 2,000 $ 2,001 Ecorse Public School District, GO, FGIC, 6.50%, 5/1/08 500 510 Farmington Hills Economic Development Corp., Marketing Displays Project, AMT, 4.05%, 9/1/08, (LOC: Comerica Bank) (a) 270 270 Marquette, GO, FSA, 4.00%, 11/1/07 150 150 Michigan State Building Authority Revenue, 3.65%, 8/9/07 5,155 5,155 Municipal Bond Authority, Series B-2, 4.50%, 8/20/07, (LOC: Bank of Nova Scotia) 1,000 1,001 Public Educational Facilities Authority, Series A, 5.00%, 6/24/08, (LOC: Charter One Bank NA) 2,500 2,525 State Building Authority, Facilities Program, Series I, 5.50%, 10/15/07 300 301 State Building Authority, Facilities Program, Series I, FSA, 5.00%, 10/15/07 1,000 1,003 State Hospital Finance Authority, Balmoral, 3.90%, 9/1/16, (LOC: Comerica Bank), (Mandatory Put 9/1/07 @ 100) (a)(b) 445 445 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 3.70%, 4/1/08 1,030 1,030 State of Michigan, Series A, 4.25%, 9/28/07, (LOC: Depfa Bank PLC) 1,000 1,001 State of Michigan Comprehensive Transportation, Series A, FSA, 5.25%, 5/15/08 240 242 Strategic Fund, Donnelly Corp. Project, Series B, AMT, 3.85%, 4/1/08, (LOC: Bank of Nova Scotia), (Callable 10/1/07 @ 100) (a)(b) 2,500 2,500 Strategic Fund, Maco Steel Project, 3.79%, 3/1/24 (a) 1,510 1,510 Strategic Fund, Oak Project, 3.79%, 11/1/33 (a)(b) 850 850 ------------ 20,494 ------------ PUERTO RICO (2.5%) Industrial Medical and Environmental Pollution Control Facilities Financing Authority, Abbott Laboratories, 3.95%, 3/1/23, (Callable 3/1/08 @ 100) (a)(b) 5,195 5,195 ------------ TOTAL MUNICIPAL BONDS 25,689 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES (a)(d) (87.6%) MICHIGAN (87.6%) Detroit Economic Development Corp., Waterfront Reclaimation, 3.67%, 8/2/07, (LOC: National City Bank Midwest) $ 6,400 $ 6,400 Detroit Water Supply System, Series C, FGIC, 3.62%, 8/1/07 9,960 9,960 Genesee County Economic Development Corp., Rawcar Group Project, AMT, 3.74%, 8/2/07, (LOC: National City Bank MI/IL) 2,005 2,005 Higher Education Facilities Authority, University of Detroit Mercy, 3.70%, 8/1/07, (LOC: JP Morgan Chase Bank) 4,950 4,950 Livonia Economic Development Corp., Livonia Luxury Suites Project, 3.64%, 8/1/07, (LOC: Comerica Bank) (b) 720 720 Macomb County Hospital Finance Authority, Mount Clemens General Hospital, Series A-1, 3.71%, 8/1/07, (LOC: Comerica Bank) 1,700 1,700 Mancelona Area Water & Sewer Authority, 3.69%, 8/2/07, (LOC: National City Bank MI/IL) 890 890 Marquette City Hospital Finance Authority, Marquette General Hospital, 3.68%, 8/2/07, (LOC: U.S. Bank NA) 1,140 1,140 Marquette County Economic Development Corp., Pioneer Laboratories, Series A, AMT, 3.86%, 8/1/07, (LOC: JP Morgan Chase & Co.) 550 550 Oakland County Economic Development Corp., Graph-Tech, Inc. Project, AMT, 3.68%, 8/2/07, (LOC: Standard Federal Bank) 1,325 1,325 Oakland County Economic Development Corp., IBC North America, Inc. Project, AMT, 3.79%, 8/2/07, (LOC: Comerica Bank) (b) 980 980 Oakland County Economic Development Corp., Moody Family, Ltd. Project, AMT, 3.76%, 8/1/07, (LOC: Bank One Michigan) (b) 2,335 2,335 Saline Economic Development Corp., Brecon Village Project, 3.68%, 8/1/07, (LOC: Bank One Michigan) 3,000 3,000 Saline Economic Development Corp., Spring Project, 3.67%, 8/1/07, (LOC: Bank of America NA) (b) 7,000 7,000 Southfield Economic Development Corp., Lawrence Technological University Project, 3.68%, 8/1/07, (LOC: Bank One NA) 2,850 2,850 Continued 16 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED State Building Authority, Multi-Modal Facilities Program IIA, 3.63%, 8/2/07, (LOC: Depfa Bank PLC) (b) $ 1,490 $ 1,490 State Building Authority, Multi-Modal Facilities Program IIB, 3.63%, 8/2/07, (LOC: Depfa Bank PLC) 4,375 4,375 State Hospital Finance Authority, Crittenton Hospital, 3.65%, 8/1/07, (LOC: Comerica Bank) 1,010 1,010 State Hospital Finance Authority, Crittenton Hospital, Series A, 3.70%, 8/1/07, (LOC: Comerica Bank) 2,000 2,000 State Hospital Finance Authority, Henry Ford Health System, 3.61%, 8/1/07, (LOC: Charter One Bank FSB) 10,300 10,300 State Hospital Finance Authority, North Ottawa Care Center, 3.64%, 8/2/07, (LOC: National City Bank Midwest) 900 900 State Housing Development Authority, Hunt Club Apartments, AMT, FNMA, 3.66%, 8/2/07 475 475 State Housing Development Authority, Jewish Apartments and Services Nonprofit Housing, 3.68%, 8/2/07, (LOC: Bank One Michigan) 5,200 5,200 State Housing Development Authority, Multi-Family, Series A, AMT, 3.71%, 8/2/07, (LOC: Federal Home Loan Bank) 6,850 6,850 State Housing Development Authority, River Park Village Senior Apartments, Series B, AMT, 3.71%, 8/2/07, (LOC: National City Bank) 3,000 3,000 State Housing Development Authority, Sand Creek Apartments, AMT, 3.67%, 8/2/07, (LOC: Federal Home Loan Bank) (b) 3,800 3,800 State Housing Development Authority, Shoal Creek, 3.60%, 8/1/07, (LOC: Bank One Michigan) 3,000 3,000 Strategic Fund, APS Kundinger Project, AMT, 3.79%, 8/2/07, (LOC: Chase Bank) (b) 1,070 1,070 Strategic Fund, Aspen Realty LLC Project, AMT, 4.10%, 8/1/07, (LOC: Bank One Michigan) (b) 100 100 Strategic Fund, Automatic Spring Products Project, AMT, 3.86%, 8/1/07, (LOC: LaSalle Bank NA) 700 700 Strategic Fund, Banks Hardwoods, Inc. Project, AMT, 3.76%, 8/2/07, (LOC: Key Bank NA) (b) 552 552 Strategic Fund, Besser International Sales Co. Project, AMT, 3.95%, 8/1/07, (LOC: Standard Federal Bank) (b) 200 200 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Biewer of Lansing LLC Project, AMT, 3.76%, 8/2/07, (LOC: Michigan National Bank) (b) $ 500 $ 500 Strategic Fund, BK Real Estate LLC Project, AMT, 3.72%, 8/2/07, (LOC: Standard Federal Bank) 1,990 1,990 Strategic Fund, Bowers Manufacturing Co. Project, AMT, 3.95%, 8/2/07, (LOC: Bank One Michigan) (b) 400 400 Strategic Fund, Cayman Chemical Co. Project, AMT, 3.73%, 8/2/07, (LOC: JP Morgan Chase Bank) (b) 760 760 Strategic Fund, CDT Real Estate Co., LLC Project, AMT, 4.10%, 8/1/07, (LOC: JP Morgan Chase Bank) (b) 100 100 Strategic Fund, Continental Carbonic Products, AMT, 3.65%, 8/2/07, (LOC: JP Morgan Chase Bank) 7,000 7,000 Strategic Fund, Creative Foam Corp. Project, AMT, 3.95%, 8/1/07, (LOC: JP Morgan Chase Bank) (b) 2,400 2,400 Strategic Fund, Delta Containers, Inc. Project, AMT, 3.95%, 8/2/07, (LOC: Bank One Michigan) 1,500 1,500 Strategic Fund, Detroit Symphony Project, Series B, 3.70%, 8/1/07, (LOC: LaSalle Bank Midwest) 3,000 3,000 Strategic Fund, Diagnostic Real Estate LLC, AMT, 3.95%, 8/1/07, (LOC: Bank One Michigan) (b) 500 500 Strategic Fund, Donnelly Corp. Project, Series A, AMT, 3.72%, 8/1/07, (LOC: Bank of Nova Scotia) (b) 4,500 4,500 Strategic Fund, Eclipse Mold, Inc. Project, AMT, 4.10%, 8/1/07, (LOC: Bank One Michigan) (b) 300 300 Strategic Fund, Emerson School Project, 3.69%, 8/2/07, (LOC: Key Bank NA) (b) 2,495 2,495 Strategic Fund, Father Gabriel Highschool Project, 3.64%, 8/2/07, (LOC: Allied Irish Bank PLC) 4,800 4,800 Strategic Fund, Fitz-Land LLC Project, AMT, 3.74%, 8/2/07, (LOC: National City Bank MI/IL) 2,190 2,190 Strategic Fund, Fleet Engineers, Inc. Project, AMT, 3.79%, 8/2/07, (LOC: Comerica Bank) 200 200 Strategic Fund, Flyer Fund Leasing LLC Project, AMT, 3.95%, 8/1/07, (LOC: JP Morgan Chase Bank) (b) 1,165 1,165 Strategic Fund, Forest City Technologies, AMT, 3.74%, 8/2/07, (LOC: National City Bank) 1,220 1,220 Strategic Fund, Frederick Wolfgang Industries Project, AMT, 3.79%, 8/2/07, (LOC: U.S. Bank NA) 795 795 Continued 17 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Gebara Management Co., LLC Project, AMT, 3.95%, 8/1/07, (LOC: JP Morgan Chase Bank) (b) $ 300 $ 300 Strategic Fund, Glastender, Inc. Project, AMT, 3.95%, 8/1/07, (LOC: Bank One Michigan) (b) 415 415 Strategic Fund, Harbor Industries, Inc. Project, AMT, 3.86%, 8/1/07, (LOC: LaSalle Bank NA) 400 400 Strategic Fund, Henry Ford Museum Village Project, 3.70%, 8/1/07, (LOC: Comerica Bank) 2,645 2,645 Strategic Fund, J. G. Kern Enterprises Project, AMT, 3.68%, 8/2/07, (LOC: LaSalle Bank Midwest) 2,800 2,800 Strategic Fund, Jet Enterprises LLC Project, 3.74%, 8/2/07, (LOC: Standard Federal Bank) (b) 400 400 Strategic Fund, John H. Dekker and Sons Project, AMT, 3.79%, 8/2/07, (LOC: Standard Federal Bank) 325 325 Strategic Fund, Joy Properties LLC Project, 3.76%, 8/1/07, (LOC: Bank One Michigan) (b) 480 480 Strategic Fund, Landscape Forms, Inc. Project, AMT, 3.95%, 8/1/07, (LOC: JP Morgan Chase Bank) (b) 200 200 Strategic Fund, Lansing Saint Vincent Home Project, 3.64%, 8/2/07, (LOC: Comerica Bank) 2,555 2,555 Strategic Fund, Lions Bear Lake Camp Project, 3.74%, 8/2/07, (LOC: National City Bank MI/IL) (b) 1,025 1,025 Strategic Fund, Louisiana-Pacific Corp., 3.68%, 8/2/07, (LOC: Wachovia Bank NA) 2,975 2,975 Strategic Fund, MacArthur Corp. Project, AMT, 3.89%, 8/2/07, (LOC: Bank One Michigan) 1,900 1,900 Strategic Fund, Merrill Group Project, AMT, 3.79%, 8/2/07, (LOC: LaSalle National Bank) (b) 1,125 1,125 Strategic Fund, Middleville Tool and Die Project, AMT, 3.95%, 8/1/07, (LOC: U.S. Bank NA) (b) 1,800 1,800 Strategic Fund, Midwest Kellering Co. Project, AMT, 3.95%, 8/1/07, (LOC: National City Bank) (b) 1,300 1,300 Strategic Fund, MOT LLC Project, 3.63%, 8/2/07, (LOC: JP Morgan Chase Bank) 970 970 Strategic Fund, Non-Ferrous Cast Alloys Project, AMT, 3.95%, 8/1/07, (LOC: Bank One Michigan) 335 335 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Patten Monument Project, AMT, 3.79%, 8/2/07, (LOC: Firstar Bank) $ 560 $ 560 Strategic Fund, Peachwood Center Associates, 3.63%, 8/1/07, (LOC: Standard Federal Bank) 460 460 Strategic Fund, Phipps Emmett Associates LLC Project, AMT, 3.86%, 8/1/07, (LOC: Michigan National Bank) 2,000 2,000 Strategic Fund, Premier Property Holdings, AMT, 3.72%, 8/2/07, (LOC: LaSalle Bank Midwest) 2,580 2,580 Strategic Fund, Production Engineering Project, AMT, 3.74%, 8/2/07, (LOC: Standard Federal Bank) (b) 1,200 1,200 Strategic Fund, Profile Industrial Packaging, AMT, 3.78%, 8/2/07, (LOC: National City Bank) 375 375 Strategic Fund, R.A. Rink LLC Project, AMT, 4.10%, 8/1/07, (LOC: Standard Federal Bank) (b) 940 940 Strategic Fund, R.L. Adams Plastics, Inc. Project, AMT, 3.79%, 8/2/07, (LOC: Comerica Bank) (b) 1,130 1,130 Strategic Fund, RL Enterprises LLC Project, AMT, 4.10%, 8/2/07, (LOC: Comerica Bank) (b) 300 300 Strategic Fund, SFI Acquisition, Inc. Project, AMT, 3.79%, 8/2/07, (LOC: National City Bank) (b) 830 830 Strategic Fund, Solid Waste Disposal, Grayling Generating Project, AMT, 3.67%, 8/1/07, (LOC: Barclays Bank New York) 2,195 2,195 Strategic Fund, Stegner East Investments LLC Project, AMT, 3.79%, 8/2/07, (LOC: Comerica Bank) (b) 2,985 2,985 Strategic Fund, Thompson Family Holdings, AMT, 3.84%, 8/2/07, (LOC: National City Bank MI/IL) 810 810 Strategic Fund, Trenton Forging Co. Project, AMT, 3.74%, 8/2/07, (LOC: Standard Federal Bank) (b) 815 815 Strategic Fund, Ultra Tech Printing Co., AMT, 3.79%, 8/2/07, (LOC: U.S. Bank NA) 1,030 1,030 Strategic Fund, Waltec American Forgings, AMT, 3.95%, 8/2/07, (LOC: Bank One NA) (b) 1,315 1,315 Strategic Fund, Warren Screw Products, Inc. Project, AMT, 3.95%, 8/1/07, (LOC: Bank One Michigan) (b) 400 400 Continued 18 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Whitehall Industries, Inc., AMT, 3.95%, 8/1/07, (LOC: Bank One NA) (b) $ 900 $ 900 Strategic Fund, Whitehall Industries, Inc. Project, AMT, 3.68%, 8/2/07, (LOC: JP Morgan Chase Bank) 3,300 3,300 Strategic Fund, Wright-K Technology, Inc. Project, AMT, 3.84%, 8/2/07, (LOC: Comerica Bank) (b) 545 545 Strategic Fund, YMCA of Metro Detroit Project, 3.66%, 8/2/07, (LOC: Bank One Michigan) 1,000 1,000 University of Michigan Hospital, Series A, 3.69%, 8/1/07 2,230 2,230 University of Michigan Hospital, Series A-2, 3.69%, 8/1/07 2,950 2,950 University of Michigan, Medical Service Plan, 3.64%, 8/1/07 4,500 4,500 Wayne Charter County Airport, AMT, AMBAC, 3.68%, 8/1/07 500 500 ------------ 184,442 ------------ TOTAL MUNICIPAL DEMAND NOTES 184,442 ------------ SHARES ------------ MONEY MARKETS (c) (0.0%) AIM TFIT Tax-Free Cash Reserve Portfolio 1,281 1 Dreyfus Tax Exempt Cash Management Fund 75 --# Goldman Sachs Financial Square Tax-Free Money Market Fund 48,809 49 Merrill Lynch Institutional Tax-Exempt Fund 4,922 5 ------------ TOTAL MONEY MARKETS 55 ------------ TOTAL INVESTMENTS (COST $210,186)+ - 99.8% 210,186 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 494 ------------ NET ASSETS - 100.0% $ 210,680 ============ Continued NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. # Amount is less than $500. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund/portfolio. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Portfolio Investments: AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax Paper FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GO - General Obligation LOC - Letter of Credit See notes to schedules of portfolio investments and notes to financial statements. 19 MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL BONDS (9.6%) ARIZONA (0.6%) Phoenix Industrial Development Authority, Multi-Family Housing, Sunrise Vista Apartments, AMT, 3.71%, 6/1/31, (LOC: Wells Fargo Bank NA), (Callable 8/1/07 @ 100) (a) $ 1,800 $ 1,800 ------------ COLORADO (1.8%) Aurora Centretech Metropolitan District, GO, Series A, 3.70%, 12/1/28, (LOC: BNP Paribas), (Mandatory Put 12/1/07 @ 100) (a) 1,000 1,000 Central Platte Valley Metropolitan District, GO, Series B, 3.70%, 12/1/31, (LOC: BNP Paribas), (Mandatory Put 12/1/07 @ 100) (a) 2,000 2,000 Durango Community Health and Human Services, 3.71%, 12/15/14, (LOC: Wells Fargo Bank NA), (Callable 8/1/07 @ 100) (a) 550 550 Parker Automotive Metropolitan District, GO, 3.70%, 12/1/34, (LOC: U.S. Bank NA), (Mandatory Put 12/1/07 @ 100) (a) 2,000 2,000 ------------ 5,550 ------------ FLORIDA (0.3%) Florida Municipal Power Agency Initiative, 3.64%, 8/2/07 1,000 1,000 ------------ INDIANA (1.2%) Avon Community School Building Corp., AMBAC, 4.25%, 7/15/08 780 783 Dyer Health Care Facilities, Regency Place, 3.79%, 8/1/12 (a) 2,290 2,290 Hammond Multi-School Building Corp., FSA, 4.00%, 1/15/08 610 611 ------------ 3,684 ------------ MICHIGAN (1.6%) Michigan State Building Authority Revenue, 3.65%, 8/9/07 5,000 5,000 ------------ MISSOURI (1.3%) Public Utilities Commission, 4.50%, 9/15/07 4,000 4,004 ------------ OHIO (0.4%) County of Fairfield, Airport Improvement, AMT, 4.55%, 4/1/08 300 301 County of Greene, Series C, 4.50%, 8/14/07 1,000 1,001 ------------ 1,302 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED OKLAHOMA (0.2%) Tulsa County Industrial Authority, Saint Francis Health System, 4.00%, 12/15/07 $ 505 $ 506 ------------ PENNSYLVANIA (1.6%) Allegheny County Hospital Development Authority, Jefferson Regional, Series A, 3.70%, 5/1/14, (LOC: PNC Bank NA), (Mandatory Put 5/1/08 @ 100) (a) 2,500 2,500 Higher Educational Facilities Authority, Associated Independent Colleges, 3.63%, 11/1/32, (LOC: Allied Irish Bank PLC), (Mandatory Put 11/1/07 @ 100) (a) 1,850 1,850 Higher Educational Facilities Authority, Health System, Series A, 5.00%, 8/15/07 500 500 ------------ 4,850 ------------ TEXAS (0.0%) Texas Southmost College District, GO, AMBAC, 4.25%, 2/15/08 115 115 ------------ WASHINGTON (0.5%) Snohomish County Public Hospital District No 2, GO, FGIC, 4.50%, 12/1/07 1,705 1,710 ------------ WISCONSIN (0.1%) Waunakee Community School District, Series D, 4.25%, 8/15/07 300 300 ------------ TOTAL MUNICIPAL BONDS 29,821 ------------ MUNICIPAL DEMAND NOTES (d) (90.3%) ALABAMA (0.6%) Stevenson Industrial Development Board Environmental Improvement, Mead Corp. Project, AMT, 3.68%, 8/1/07, (LOC: JP Morgan Chase Bank) (a) 2,000 2,000 ------------ ARIZONA (1.0%) Pima County Industrial Development Authority, Multi-Family Housing, Eastside Apartments, AMT, FNMA, 3.73%, 8/2/07 (a) 3,000 3,000 ------------ ARKANSAS (0.6%) City of Sheridan, H.H. Robertson Co. Project, 3.64%, 8/2/07, (LOC: PNC Bank NA) (a)(b) 2,000 2,000 ------------ Continued 20 MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED COLORADO (4.3%) City of Colorado Springs, Catalono Family LLC Project, AMT, 4.10%, 8/2/07, (LOC: Bank One Colorado NA) (a) $ 665 $ 665 City of Colorado Springs, National Strength and Condition, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 645 645 Commerce City Northern Infrastructure General Improvement District, GO, 3.66%, 8/2/07, (LOC: U.S. Bank NA) (a) 1,500 1,500 Denver City and County Airport, Series C, AMT, 3.66%, 8/1/07, (LOC: Societe Generale) (a) 3,550 3,550 Denver City and County Airport, Series F, AMT, 3.66%, 8/1/07, (LOC: Societe Generale) (a) 2,950 2,950 Housing and Finance Authority, High Desert Properties Project, Series A, AMT, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 2,240 2,240 Housing and Finance Authority, Ready Foods, Inc. Project, Series A, AMT, 3.69%, 8/2/07, (LOC: U.S. Bank NA) (a) 2,000 2,000 ------------ 13,550 ------------ DELAWARE (2.2%) Sussex County Development, Perdue Farms, Inc. Project, AMT, 3.73%, 8/2/07, (LOC: Rabobank Nederland) (a) 7,000 7,000 ------------ FLORIDA (3.3%) Alachua County Health Facilities Authority, 3.70%, 8/1/07, (LOC: Suntrust Bank) (a) 800 800 Collier County Housing Finance Authority, Multi-Family Housing, AMT, 3.69%, 8/1/07, (LOC: PNC Bank NA) (a) 500 500 Hillsborough County Housing Finance Authority Multi-Family Housing, AMT, 3.67%, 8/1/07, (LOC: Citibank NA) (a) 1,340 1,340 Ocean Highway and Port Authority, AMT, 3.73%, 8/1/07, (LOC: Wachovia Bank NA) (a) 1,705 1,705 Orange County Industrial Development Authority, Goodwill Industries, Inc. Project, 3.63%, 8/1/07, (LOC: Suntrust Bank) (a) 2,100 2,100 Palm Beach County Housing Finance Authority, Multi-Family Housing, AMT, 3.72%, 8/1/07, (LOC: SunTrust Bank FL) (a) 3,825 3,825 ------------ 10,270 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED GEORGIA (0.9%) Emanuel County Development Authority, Jabo Metal Fabrication Project, AMT, 3.73%, 8/1/07, (LOC: SunTrust Bank) (a) $ 1,250 $ 1,250 Kennesaw Development Authority, Multi-Family Housing, Walton Ridenour Apartments, AMT, 3.67%, 8/1/07, (LOC: SunTrust Bank) (a) 1,500 1,500 ------------ 2,750 ------------ IDAHO (0.6%) Hailey Industrial Development Corp., Rocky Mountain Hardware Project, AMT, 3.81%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 1,000 1,000 Power County, Pollution Control, FMC Corp. Project, 3.70%, 8/1/07, (LOC: Wachovia Bank NA) (a) 1,000 1,000 ------------ 2,000 ------------ ILLINOIS (14.5%) Chicago O'Hare International Airport, Compagnie National Air France, AMT, 3.70%, 8/1/07, (LOC: Societe Generale) (a) 2,500 2,500 City of Chicago Solid Waste Disposal, Groot Industries, Inc. Project, AMT, 3.89%, 8/2/07, (LOC: Bank One NA) (a)(b) 1,400 1,400 City of Crystal Lake Development, Millennium Electronics Project, AMT, 3.83%, 8/2/07, (LOC: U.S. Bank NA) (a) 1,470 1,470 City of Peoria, Peoria Academy, Inc. Project, 3.90%, 8/2/07, (LOC: Bank One NA) (a)(b) 4,200 4,200 County of Lake, Northpoint Associates LLC Project, AMT, 3.73%, 8/1/07, (LOC: Northern Trust Co.) (a) 1,000 1,000 Educational Facilities Authority, Field Museum of Natural History, 3.68%, 8/1/07, (LOC: Northern Trust Co.) (a)(b) 4,900 4,900 Educational Facilities Authority, Lake County Family YMCA, 3.68%, 8/1/07, (LOC: Harris Trust & Savings Bank) (a) 1,450 1,450 Finance Authority, Diamond-Star Motors Corp. Project, 3.71%, 8/1/07, (LOC: Key Bank NA) (a)(b) 900 900 Finance Authority, Reliable Materials Project, AMT, 3.68%, 8/1/07, (LOC: M&I Bank) (a) 3,700 3,700 Finance Authority, Transparent Container Project, AMT, 3.68%, 8/2/07, (LOC: Bank One NA) (a) 1,615 1,615 Finance Authority, WTVP Channel 47 Project, Series A, 3.67%, 8/2/07, (LOC: Bank of America NA) (a) 3,650 3,650 Continued 21 MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED ILLINOIS, CONTINUED Lake Villa Allendale Association Project, 3.69%, 8/2/07, (LOC: LaSalle Bank NA) (a)(b) $ 4,435 $ 4,435 Rock Island County Metropolitan Airport Authority, Elliot Aviation, AMT, 3.67%, 8/1/07, (LOC: U.S. Bank NA) (a) 1,235 1,235 Village of Lemont Environmental Facilities, Citgo Petroleum Project, AMT, 3.74%, 8/1/07, (LOC: Bank of New York) (a) 6,650 6,650 West Chicago Industrial, Bison Gear and Engineering, AMT, 3.67%, 8/2/07, (LOC: JP Morgan Chase Bank) (a) 3,984 3,984 Wheeling Industrial, Circuit Service, Inc. Project, AMT, 3.95%, 8/2/07, (LOC: Bank One Illinois NA) (a) 1,200 1,200 Woodridge Development, Home Run Inn Frozen Foods, AMT, 3.90%, 8/2/07, (LOC: JP Morgan Chase Bank) (a) 1,000 1,000 ------------ 45,289 ------------ INDIANA (7.1%) County of St Joseph Family and Children's Center Project, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 2,100 2,100 Dekko Foundation Educational Facilities Tax Exempt Income Trust, Series 1, 3.90%, 8/2/07, (LOC: Bank One Indiana NA) (a)(b) 545 545 Development Finance Authority, Lutheran Educational Facilities Project, 3.64%, 8/2/07, (LOC: National City Bank) (a)(b) 2,390 2,390 Development Finance Authority, Regional Council of Carpenters, 3.74%, 8/2/07, (LOC: National City Bank IN) (a)(b) 1,165 1,165 Development Finance Authority, Republic Services, Inc. Project, AMT, 3.70%, 8/1/07, (LOC: SunTrust Bank) (a) 9,200 9,200 Development Finance Authority, South Central Mental Health, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a)(b) 3,200 3,200 State Finance Authority, Mittal Steel USA, AMT, 3.68%, 8/1/07, (LOC: Bank of Montreal) (a) 1,000 1,000 Wabash Economic Development, Wabash Alloys Project, AMT, 3.73%, 8/1/07, (LOC: Fleet National Bank) (a) 2,500 2,500 ------------ 22,100 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED IOWA (1.7%) Scott County Industrial, M.A. Ford Manufacturing Co., Inc. Project, AMT, 3.83%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) $ 3,135 $ 3,135 Sergeant Bluff Industrial, Sioux City Brick and Tile Project, AMT, 3.68%, 8/2/07, (LOC: U.S. Bank NA) (a)(b) 2,100 2,100 ------------ 5,235 ------------ KENTUCKY (1.6%) Economic Development Finance Authority, Republic Services, Inc. Project, AMT, 3.68%, 8/2/07, (LOC: Bank One NA) (a) 1,075 1,075 Economic Development Finance Authority, Republic Services, Inc. Project, AMT, 3.68%, 8/2/07, (LOC: Bank of America NA) (a) 4,000 4,000 ------------ 5,075 ------------ LOUISIANA (1.1%) Calcasieu Parish Industrial Development Board, Citgo Petroleum Corp. Project, AMT, 3.74%, 8/1/07, (LOC: BNP Paribas) (a) 3,500 3,500 ------------ MAINE (0.3%) Finance Authority of Maine, William Arthur, Inc., AMT, 3.95%, 8/1/07, (LOC: Bank One NA) (a) 800 800 ------------ MICHIGAN (1.6%) Macomb County Hospital Finance Authority, Mount Clemens General Hospital, Series A-1, 3.71%, 8/1/07, (LOC: Comerica Bank) (a) 400 400 State Hospital Finance Authority, North Ottawa Care Center, 3.64%, 8/2/07, (LOC: National City Bank Midwest) (a) 1,285 1,285 Strategic Fund, Detroit Symphony Project, Series B, 3.70%, 8/1/07, (LOC: LaSalle Bank Midwest) (a) 400 400 Strategic Fund, Heartland Goodwill Project, 3.63%, 8/2/07, (LOC: Standard Federal Bank) (a) 1,000 1,000 Strategic Fund, J. G. Kern Enterprises Project, AMT, 3.68%, 8/2/07, (LOC: LaSalle Bank Midwest) (a) 1,150 1,150 Strategic Fund, Orchestra Place Renewal Project, 3.62%, 8/2/07, (LOC: Standard Federal Bank) (a) 135 135 Strategic Fund, Peachwood Center Associates, 3.63%, 8/1/07, (LOC: Standard Federal Bank) (a) 480 480 ------------ 4,850 ------------ Continued 22 MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MINNESOTA (3.6%) City of Blue Earth Development, Nortech Systems, Inc. Project, AMT, 3.81%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) $ 1,310 $ 1,310 City of Minneapolis, Minnehaha Academy Project, 3.80%, 8/1/07, (LOC: U.S. Bank NA) (a) 3,500 3,500 Higher Education Facilities Authority, Saint Olaf College, 3.70%, 8/1/07, (LOC: Harris Trust & Savings Bank) (a) 1,000 1,000 Lauderdale, Children's Home Society Project, 3.80%, 8/1/07, (LOC: U.S. Bank NA) (a) 295 295 Little Canada, Wellington III Project, AMT, 3.86%, 8/2/07, (LOC: U.S. Bank NA) (a)(b) 420 420 Roseville Health Care Facilities, Presbyterian Homes Project, 3.75%, 8/1/07, (LOC: U.S. Bank NA) (a) 2,530 2,530 Saint Paul Housing and Redevelopment Authority, Kendrick Apartments Project, AMT, 3.77%, 8/1/07, (LOC: U.S. Bank NA) (a) 975 975 Saint Paul Port Authority, AMT, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 1,245 1,245 ------------ 11,275 ------------ MISSISSIPPI (0.9%) Business Finance Corp., Calgon Carbon Corp. Project, AMT, 3.74%, 8/2/07, (LOC: JP Morgan Chase Bank) (a) 2,925 2,925 ------------ MISSOURI (1.4%) State Health and Educational Facilities Authority, Drury University, 3.75%, 8/1/07, (LOC: Bank of America NA) (a) 1,000 1,000 State Health and Educational Facilities Authority, Drury University, 3.75%, 8/1/07, (LOC: Bank of America NA) (a) 1,610 1,610 State Health and Educational Facilities Authority, Missouri Valley College, 3.75%, 8/1/07, (LOC: U.S. Bank NA) (a) 1,600 1,600 ------------ 4,210 ------------ MULTI (0.8%) Revenue Bond Certificate Series Trust Various States, Series 2006-6, AMT, 3.83%, 8/2/07 (a)(b) 1,000 1,000 Revenue Bond Certificate Series Trust Various States, Series 2006, AMT, 4.17%, 8/2/07 (a)(b) 1,440 1,440 ------------ 2,440 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED NEVADA (1.8%) County of Clark, Nevada Cogeneration Project, AMT, 3.75%, 8/1/07, (LOC: Canadian Imperial Bank) (a) $ 4,520 $ 4,520 Housing Division, Multi-Family Housing, Golden Apartments, AMT, FHLMC, 3.68%, 8/2/07 (a) 1,200 1,200 ------------ 5,720 ------------ NEW HAMPSHIRE (0.8%) Business Finance Authority, Wiggins Airway, Inc. Project, AMT, 3.67%, 8/2/07, (LOC: Bank Boston NA) (a)(b) 2,400 2,400 ------------ NORTH CAROLINA (10.0%) Capital Facilities Finance Agency, AMT, 3.75%, 8/1/07, (LOC: SunTrust Bank) (a) 1,550 1,550 Capital Facilities Finance Agency, Duke Energy Carolinas Project, AMT, 3.66%, 8/2/07, (LOC: Wachovia Bank NA) (a) 4,500 4,500 Capital Facilities Finance Agency, Duke Energy Carolinas Project, AMT, 3.68%, 8/2/07, (LOC: Wachovia Bank NA) (a) 4,000 4,000 Halifax County Industrial Facilities & Pollution Control Financing Authority, AMT, 3.72%, 8/1/07, (LOC: Dexia Credit Local) (a) 10,500 10,500 Johnston County Industrial Facilities & Pollution Control Financing Authority, AMT, 3.81%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 1,075 1,075 Montgomery County Industrial Facilities & Pollution Control Financing Auth, AMT, 3.70%, 8/1/07, (LOC: SunTrust Bank) (a) 9,600 9,600 ------------ 31,225 ------------ NORTH DAKOTA (0.2%) Hebron Industrial, Dacco, Inc. Project, AMT, 3.76%, 8/2/07, (LOC: U.S. Bank NA) (a)(b) 520 520 ------------ OHIO (5.1%) Air Quality Development Authority, Pollution Control, AMT, 3.70%, 8/1/07, (LOC: Wachovia Bank NA) (a) 5,835 5,835 Cleveland-Cuyahoga County Port Authority, AMT, 3.79%, 8/2/07, (LOC: Charter One Bank NA) (a) 1,800 1,800 Columbiana County, East Liverpool Area Y Project, 3.69%, 8/2/07, (LOC: National City Bank) (a) 1,040 1,040 County of Coshocton Hospital Facilities, Echoing Hills Village, Inc. Project, 3.90%, 8/2/07, (LOC: Bank One Columbus NA) (a)(b) 165 165 County of Montgomery Economic Development, Benjamin and Marian Project, Series A, 3.69%, 8/2/07, (LOC: National City Bank) (a) 1,160 1,160 Continued 23 MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED OHIO, CONTINUED County of Montgomery Economic Development, The Dayton Art Institute, 3.68%, 8/1/07, (LOC: National City Bank) (a) $ 1,400 $ 1,400 County of Montgomery Health Care, Community Blood Center Project, 3.90%, 8/2/07, (LOC: Bank One NA) (a) 1,475 1,475 Independence Economic Development, Spectrum Investments, Ltd. Project, 3.69%, 8/2/07, (LOC: U.S. Bank NA) (a) 2,330 2,330 Summit County Industrial, SSP Fittings Corp. Project, 4.05%, 8/2/07, (LOC: JP Morgan Chase Bank) (a) 685 685 ------------ 15,890 ------------ OREGON (2.3%) Port of Portland, AMT, 3.70%, 8/2/07, (LOC: Canadian Imperial Bank) (a) 2,000 2,000 State of Oregon Economic Development, McFarland Cascade, Series 175, AMT, 3.76%, 8/2/07, (LOC: U.S. Bank NA) (a)(b) 500 500 State of Oregon, Newsprint Project, Series 197, AMT, 3.75%, 8/1/07, (LOC: Toronto Dominion Bank (The)) (a) 4,800 4,800 ------------ 7,300 ------------ PENNSYLVANIA (2.4%) Allegheny County Industrial Development Authority, Sacred Heart High School, 3.64%, 8/2/07, (LOC: PNC Bank NA) (a) 1,200 1,200 Allegheny County Industrial Development Authority, Sewickley Academy, 3.67%, 8/2/07, (LOC: PNC Bank NA) (a) 1,000 1,000 Berks County Industrial Development Authority, AMT, 3.69%, 8/1/07, (LOC: PNC Bank NA) (a) 1,205 1,205 Chester County Industrial Development Authority, 3.68%, 8/1/07, (LOC: Wachovia Bank NA) (a) 1,400 1,400 Philadelphia Authority for Industrial Development, Newcourtland Elder Services Project, 3.68%, 8/1/07, (LOC: PNC Bank NA) (a) 1,400 1,400 Westmoreland County Industrial Development Authority, 3.64%, 8/2/07, (LOC: PNC Bank NA) (a) 1,425 1,425 ------------ 7,630 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED SOUTH CAROLINA (0.2%) South Carolina Jobs-Economic Development Authority, AMT, 3.74%, 8/2/07, (LOC: PNC Bank NA) (a) $ 500 $ 500 ------------ SOUTH DAKOTA (1.6%) County of Lawrence Solid Waste Disposal, Series A, AMT, 3.73%, 8/1/07, (LOC: JP Morgan Chase Bank) (a) 5,100 5,100 ------------ TENNESSEE (1.9%) Clarksville Public Building Authority, 3.67%, 8/1/07, (LOC: Bank of America NA) (a) 1,500 1,500 Covington Industrial Development Board, Charms Co. Project, AMT, 3.73%, 8/1/07, (LOC: Bank of America NA) (a) 2,000 2,000 Greeneville Industrial Development Board, Pet, Inc. Project, 3.64%, 8/2/07 (a)(b) 500 500 Lewisburg Industrial Development Board, Waste Management, Inc. Project, AMT, 3.70%, 8/2/07, (LOC: Wachovia Bank NA) (a) 2,000 2,000 ------------ 6,000 ------------ TEXAS (1.9%) Sulphur Springs Industrial Development Authority, CMH Manufacturing, Inc. Project, AMT, 3.76%, 8/2/07, (LOC: U.S. Bank NA) (a) 4,030 4,030 Waco Industrial Development Corp., Patriot Homes of Texas Project, AMT, 3.77%, 8/1/07, (LOC: Wells Fargo Bank NA) (a) 2,000 2,000 ------------ 6,030 ------------ UTAH (0.8%) County of Salt Lake, Community Foundation Disabled Project, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 1,540 1,540 Utah Housing Corp., Multi-Family Housing, Pointe Apartments Project, AMT, 3.69%, 8/2/07, (LOC: U.S. Bank NA) (a) 1,100 1,100 ------------ 2,640 ------------ VIRGINIA (2.6%) Brunswick County Industrial Development Authority, Aegis Waste Solutions, Inc., AMT, 3.95%, 8/2/07, (LOC: Credit Suisse First Boston) (a) 1,000 1,000 Continued 24 MUNICIPAL MONEY MARKET SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2007 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED VIRGINIA, CONTINUED King George County Industrial Development Authority, Birchwood Power Partners, AMT, 3.71%, 8/1/07, (LOC: Bank of Nova Scotia) (a) $ 4,610 $ 4,610 Suffolk Redevelopment and Housing Authority, North Beach Apartments, 3.73%, 8/2/07, (LOC: SunTrust Bank) (a)(b) 1,300 1,300 Wythe County Industrial Development Authority, Klockner-Pentaplast America, AMT, 3.78%, 8/2/07, (LOC: Deutsche Bank AG) (a)(b) 1,130 1,130 ------------ 8,040 ------------ WASHINGTON (5.7%) Economic Development Finance Authority, Novelty Hill Properties LLC, AMT, 3.73%, 8/2/07, (LOC: U.S. Bank NA) (a) 3,210 3,210 Health Care Facilities Authority, Inland Northwest Blood, 3.67%, 8/2/07, (LOC: Bank of America NA) (a) 3,970 3,970 Health Care Facilities Authority, Swedish Health Services, 3.71%, 8/1/07, (LOC: Citibank NA) (a) 4,000 4,000 Kitsap County Industrial Development Corp., Cara Land Co. LLC Project, AMT, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 2,500 2,500 Pierce County Economic Development Corp., Quality Stamping Project, AMT, 3.71%, 8/2/07, (LOC: Wells Fargo Bank NA) (a) 2,225 2,225 Seattle Housing Authority, High Point Project, AMT, 3.69%, 8/2/07, (LOC: Key Bank NA) (a) 1,500 1,500 Seattle Housing Authority, Rainier Vista Project, AMT, 3.73%, 8/2/07, (LOC: Key Bank) (a) 400 400 ------------ 17,805 ------------ WISCONSIN (2.0%) Manitowoc Development, Cher-Make Sausage Co. Project, AMT, 3.83%, 8/2/07, (LOC: U.S. Bank NA) (a) 2,190 2,190 Oconomowoc Community Development Authority, AMT, 3.70%, 8/2/07, (LOC: LaSalle Bank NA) (a) 1,200 1,200 Onalaska Industrial, Empire Screen Printing Project, AMT, 3.83%, 8/2/07, (LOC: U.S. Bank NA) (a) 1,000 1,000 West Bend Industrial, Jackson Concrete, Inc. Project, AMT, 3.83%, 8/2/07, (LOC: U.S. Bank NA) (a) 1,750 1,750 ------------ 6,140 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED WYOMING (2.9%) County of Sweetwater, Environment, Pacificorp Project, AMT, 3.79%, 8/1/07, (LOC: Barclays Bank PLC) (a) $ 9,100 $ 9,100 ------------ TOTAL MUNICIPAL DEMAND NOTES 282,309 ------------ SHARES ------------ MONEY MARKETS (c) (0.0%) AIM TFIT Tax-Free Cash Reserve Portfolio 1,211 1 Dreyfus Tax Exempt Cash Management Fund 535 1 Goldman Sachs Financial Square Tax-Free Money Market Fund 49,434 49 ------------ TOTAL MONEY MARKETS 51 ------------ TOTAL INVESTMENTS (COST $312,181)+ - 99.9% 312,181 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 355 ------------ NET ASSETS - 100.0% $ 312,536 ============ NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS + Also represents cost for federal income tax purposes. (a) Variable rate security. Rate presented represents rate in effect at July 31, 2007. (b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (c) Investment is in Institutional Shares of underlying fund/portfolio. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Portfolio Investments: AMT - Alternative Minimum Tax Paper AMBAC - American Municipal Bond Assurance Corp. FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association FGIC - Financial Guaranty Insurance Co. FSA - Financial Security Assurance, Inc. GO - General Obligation LOC - Letter of Credit See notes to schedules of portfolio investments and notes to financial statements. 25 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2007 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) - -------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT PRIME INSTITUTIONAL MONEY ASSETS: MONEY MARKET MONEY MARKET MARKET ------------ ------------- ------------- Investments, at amortized cost and value $1,125,554 $1,765,211 $394,846 Repurchase agreement, at cost and value 111,487 301,160 459,184 ---------- ---------- -------- Total Investments 1,237,041 2,066,371 854,030 Cash 35 --^ 1 Interest receivable 5,053 9,698 3,353 Receivable for Fund shares sold 195 168 -- Prepaid expenses and other assets 36 11 19 ---------- ---------- -------- Total Assets 1,242,360 2,076,248 857,403 ---------- ---------- -------- LIABILITIES: Cash overdraft -- -- -- Distributions payable 2,175 4,350 2,341 Payable for investments purchased 4,965 5,611 -- Payable for Fund shares redeemed 250 90 -- Accrued expenses and other payables: Payable to Advisor and affiliates 525 258 115 Distribution and administration services fees 139 63 57 Other 186 47 27 ---------- ---------- -------- Total Liabilities 8,240 10,419 2,540 ---------- ---------- -------- NET ASSETS: Paid-in capital $1,233,648 $2,065,780 $854,852 Accumulated net investment income 564 50 11 Accumulated net realized gain (loss) from investment transactions (92) (1) --^ ---------- ---------- -------- Net Assets $1,234,120 $2,065,829 $854,863 ========== ========== ======== NET ASSETS: Institutional Shares $ 605,987 $1,687,392 $487,057 Class A Shares 625,362 NA NA Class B Shares 1,468 NA NA Class C Shares 1,066 NA NA Advisor Shares 237 NA NA Select Shares NA 59,901 13,983 Preferred Shares NA 87,627 225,141 Trust Shares NA 230,909 128,682 ---------- ---------- -------- Total $1,234,120 $2,065,829 $854,863 ========== ========== ======== Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value): Institutional Shares 605,792 1,687,368 487,055 Class A Shares 625,128 NA NA Class B Shares 1,468 NA NA Class C Shares 1,066 NA NA Advisor Shares 237 NA NA Select Shares NA 59,898 13,982 Preferred Shares NA 87,619 225,138 Trust Shares NA 230,897 128,680 ---------- ---------- -------- Total 1,233,691 2,065,782 854,855 ========== ========== ======== NET ASSET VALUE Offering and redemption price per share-Institutional Shares, Class A Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00 $ 1.00 ========== ========== ======== GOVERNMENT U.S. TREASURY ASSETS: MONEY MARKET MONEY MARKET ------------ ------------ Investments, at amortized cost and value $237,375 $ 137,031 Repurchase agreement, at cost and value -- 897,609 -------- ---------- Total Investments 237,375 1,034,640 Cash 1 52 Interest receivable 1,002 1,663 Receivable for Fund shares sold 2 28 Prepaid expenses and other assets 20 11 -------- ---------- Total Assets 238,400 1,036,394 -------- ---------- LIABILITIES: Cash overdraft -- -- Distributions payable 600 4,442 Payable for investments purchased -- -- Payable for Fund shares redeemed -- 19 Accrued expenses and other payables: Payable to Advisor and affiliates 100 143 Distribution and administration services fees 12 92 Other 8 112 -------- ---------- Total Liabilities 720 4,808 -------- ---------- NET ASSETS: Paid-in capital $237,189 $1,031,033 Accumulated net investment income 493 674 Accumulated net realized gain (loss) from investment transactions (2) (121) -------- ---------- Net Assets $237,680 $1,031,586 ======== ========== NET ASSETS: Institutional Shares $141,108 $420,260 Class A Shares 96,572 NA Class B Shares NA NA Class C Shares NA NA Advisor Shares NA NA Select Shares NA 63,885 Preferred Shares NA 472,893 Trust Shares NA 74,548 -------- ---------- Total $237,680 $1,031,586 ======== ========== Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value): Institutional Shares 140,877 419,911 Class A Shares 96,436 NA Class B Shares NA NA Class C Shares NA NA Advisor Shares NA NA Select Shares NA 63,839 Preferred Shares NA 472,551 Trust Shares NA 74,493 -------- ---------- Total 237,313 1,030,794 ======== ========== NET ASSET VALUE Offering and redemption price per share-Institutional Shares, Class A Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00 ======== ========== MICHIGAN MUNICIPAL MUNICIPAL ASSETS: MONEY MARKET MONEY MARKET ------------------ ------------ Investments, at amortized cost and value $210,186 $312,181 Repurchase agreement, at cost and value -- -- -------- -------- Total Investments 210,186 312,181 Cash -- -- Interest receivable 986 1,177 Receivable for Fund shares sold -- -- Prepaid expenses and other assets 2 24 -------- -------- Total Assets 211,174 313,382 -------- -------- LIABILITIES: Cash overdraft -- 3 Distributions payable 389 776 Payable for investments purchased -- -- Payable for Fund shares redeemed -- 1 Accrued expenses and other payables: Payable to Advisor and affiliates 89 31 Distribution and administration services fees 2 14 Other 14 21 -------- -------- Total Liabilities 494 846 -------- -------- NET ASSETS: Paid-in capital $210,688 $312,453 Accumulated net investment income (8) 80 Accumulated net realized gain (loss) from investment transactions -- 3 -------- -------- Net Assets $210,680 $312,536 ======== ======== NET ASSETS: Institutional Shares $195,970 $230,703 Class A Shares 14,710 38,516 Class B Shares NA NA Class C Shares NA NA Advisor Shares NA NA Select Shares NA 10,198 Preferred Shares NA 1,398 Trust Shares NA 31,721 -------- -------- Total $210,680 $312,536 ======== ======== Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value): Institutional Shares 195,930 230,634 Class A Shares 14,708 38,518 Class B Shares NA NA Class C Shares NA NA Advisor Shares NA NA Select Shares NA 10,195 Preferred Shares NA 1,398 Trust Shares NA 31,712 -------- -------- Total 210,638 312,457 ======== ======== NET ASSET VALUE Offering and redemption price per share-Institutional Shares, Class A Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00 ======== ======== - ---------- (a) Redemption price per share for Class B Shares and Class C Shares varies by length of time shares are held. ^ Amount is less than five hundred dollars. See notes to financial statements. 26-27 spread FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2007 (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT PRIME INSTITUTIONAL MONEY MONEY MARKET MONEY MARKET MARKET ------------ ------------- ------------- INVESTMENT INCOME: Interest income $62,312 $97,797 $38,380 Dividend income 73 227 85 ------- ------- ------- Total Income 62,385 98,024 38,465 ------- ------- ------- EXPENSES: Investment advisory fees 4,653 7,330 2,910 Administration fees 2,014 3,173 1,260 Distribution services fees-Class A 1,433 NA NA Distribution services fees-Class B 12 NA NA Distribution services fees-Class C 9 NA NA Distribution services fees-Advisor Shares 9 NA NA Administrative services fees-Class C 3 NA NA Administrative services fees-Select Shares NA 37 12 Administrative services fees-Preferred Shares NA 175 348 Administrative services fees-Trust Shares NA 523 277 Accounting fees 223 278 157 Registration and filing fees 54 33 27 Transfer and dividend disbursing agent fees 233 340 145 Custody fees 53 72 41 Trustees' fees and expenses 64 98 39 Other expenses 348 415 200 ------- ------- ------- Total Expenses 9,108 12,474 5,416 ------- ------- ------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (1,361) (7,914) (3,256) Distribution services-Class A Shares waived -- -- -- ------- ------- ------- Net Expenses 7,747 4,560 2,160 ------- ------- ------- Net Investment Income 54,638 93,464 36,305 ------- ------- ------- Net realized gains on investments --^ --^ --^ Increase from payment by the Advisor 479 -- -- ------- ------- ------- Change in net assets resulting from operations $55,117 $93,464 $36,305 ======= ======= ======= GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET ------------ ------------- INVESTMENT INCOME: Interest income $11,435 $59,312 Dividend income 420 122 ------- ------- Total Income 11,855 59,434 ------- ------- EXPENSES: Investment advisory fees 905 4,545 Administration fees 392 1,968 Distribution services fees-Class A 210 NA Distribution services fees-Class B NA NA Distribution services fees-Class C NA NA Distribution services fees-Advisor Shares NA NA Administrative services fees-Class C NA NA Administrative services fees-Select Shares NA 54 Administrative services fees-Preferred Shares NA 856 Administrative services fees-Trust Shares NA 197 Accounting fees 53 212 Registration and filing fees 24 27 Transfer and dividend disbursing agent fees 60 223 Custody fees 22 64 Trustees' fees and expenses 12 62 Other expenses 67 330 ------- ------- Total Expenses 1,745 8,538 ------- ------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (222) (5,051) Distribution services-Class A Shares waived (84) -- ------- ------- Net Expenses 1,439 3,487 ------- ------- Net Investment Income 10,416 55,947 ------- ------- Net realized gains on investments --^ 20 Increase from payment by the Advisor 404 665 ------- ------- Change in net assets resulting from operations $10,820 $56,632 ======= ======= MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET ------------------ ------------ INVESTMENT INCOME: Interest income $7,233 $10,770 Dividend income 40 57 ------ ------- Total Income 7,273 10,827 ------ ------- EXPENSES: Investment advisory fees 784 1,461 Administration fees 339 506 Distribution services fees-Class A 15 78 Distribution services fees-Class B NA NA Distribution services fees-Class C NA NA Distribution services fees-Advisor Shares NA NA Administrative services fees-Class C NA NA Administrative services fees-Select Shares NA 8 Administrative services fees-Preferred Shares NA 3 Administrative services fees-Trust Shares NA 86 Accounting fees 47 96 Registration and filing fees 6 29 Transfer and dividend disbursing agent fees 44 63 Custody fees 23 29 Trustees' fees and expenses 11 16 Other expenses 59 96 ------ ------- Total Expenses 1,328 2,471 ------ ------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (256) (1,683) Distribution services-Class A Shares waived (5) -- ------ ------- Net Expenses 1,067 788 ------ ------- Net Investment Income 6,206 10,039 ------ ------- Net realized gains on investments -- 6 Increase from payment by the Advisor -- 81 ------ ------- Change in net assets resulting from operations $6,206 $10,126 ====== ======= - ---------- ^ Amount is less than five hundred dollars. See notes to financial statements. 28-29 spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRIME INSTITUTIONAL MONEY MARKET MONEY MARKET ------------------------ ------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 ---------- ---------- ---------- ---------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 54,638 $ 48,464 $ 93,464 $ 57,912 Net realized gains from investment transactions -- ^ 7 -- ^ -- Increase from payment by the Advisor 479 -- -- -- ---------- ---------- ---------- ---------- Change in net assets resulting from operations 55,117 48,471 93,464 57,912 ---------- ---------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Institutional Shares (28,254) (32,705) (75,047) (53,024) Class A Shares (26,216) (15,668) NA NA Class B Shares (46) (27) NA NA Class C Shares (46) (35) NA NA Advisor Shares (77) (29) NA NA Select Shares NA NA (2,361) (1,225) Preferred Shares NA NA (5,814) (1,409) Trust Shares NA NA (10,222) (2,254) ---------- ---------- ---------- ---------- Change in net assets from shareholder distributions (54,639) (48,464) (93,444) (57,912) ---------- ---------- ---------- ---------- Change in net assets from Fund share transactions 211,185 (403,532) 507,576 408,824 ---------- ---------- ---------- ---------- Change in net assets 211,663 (403,525) 507,596 408,824 NET ASSETS: Beginning of period 1,022,457 1,425,982 1,558,233 1,149,409 ---------- ---------- ---------- ---------- End of period $1,234,120 $1,022,457 $2,065,829 $1,558,233 ========== ========== ========== ========== Accumulated Net Investment Income/(Loss) $ 564 $ 86 $ 50 $ 29 ========== ========== ========== ========== INSTITUTIONAL GOVERNMENT GOVERNMENT MONEY MARKET MONEY MARKET ------------------------- ------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 ---------- ---------- ---------- ---------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 36,305 $ 25,488 $ 10,416 $ 8,203 Net realized gains from investment transactions -- ^ -- -- ^ -- ^ Increase from payment by the Advisor -- -- 404 -- ---------- ---------- ---------- ---------- Change in net assets resulting from operations 36,305 25,488 10,820 8,203 ---------- ---------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Institutional Shares (18,791) (11,623) (6,614) (5,198) Class A Shares NA NA (3,778) (2,969) Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares (728) (153) NA NA Preferred Shares (11,433) (9,199) NA NA Trust Shares (5,350) (4,513) NA NA ---------- ---------- ---------- ---------- Change in net assets from shareholder distributions (36,302) (25,488) (10,392) (8,167) ---------- ---------- ---------- ---------- Change in net assets from Fund share transactions 257,928 (19,249) 36,819 (39,006) ---------- ---------- ---------- ---------- Change in net assets 257,931 (19,249) 37,247 (38,970) NET ASSETS: Beginning of period 596,932 616,181 200,433 239,403 ---------- ---------- ---------- ---------- End of period $ 854,863 $ 596,932 $ 237,680 $ 200,433 ========== ========== ========== ========== Accumulated Net Investment Income/(Loss) $ 11 $ 8 $ 493 $ 64 ========== ========== ========== ========== U.S. TREASURY MICHIGAN MUNICIPAL MONEY MARKET MONEY MARKET ----------------------- ------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 ---------- ---------- ---------- ---------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 55,947 $ 46,673 $ 6,206 $ 4,707 Net realized gains from investment transactions 20 2 -- --^ Increase from payment by the Advisor 665 -- -- -- ---------- ---------- ---------- ---------- Change in net assets resulting from operations 56,632 46,675 6,206 4,707 ---------- ---------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Institutional Shares (21,023) (15,029) (6,030) (4,693) Class A Shares NA NA (175) (14) Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares (3,333) (2,824) NA NA Preferred Shares (27,813) (24,294) NA NA Trust Shares (3,770) (4,526) NA NA ---------- ---------- ---------- ---------- Change in net assets from shareholder distributions (55,939) (46,673) (6,205) (4,707) ---------- ---------- ---------- ---------- Change in net assets from Fund share transactions (156,176) (76,394) 19,298 26,867 ---------- ---------- ---------- ---------- Change in net assets (155,483) (76,392) 19,299 26,867 NET ASSETS: Beginning of period 1,187,069 1,263,461 191,381 164,514 ---------- ---------- ---------- ---------- End of period $1,031,586 $1,187,069 $ 210,680 $ 191,381 ========== ========== ========== ========== Accumulated Net Investment Income/(Loss) $ 674 $ 1 $ (8) $ (10) ========== ========== ========== ========== MUNICIPAL MONEY MARKET ------------------------ YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2007 2006 ---------- ---------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 10,039 $ 6,296 Net realized gains from investment transactions 6 2 Increase from payment by the Advisor 81 -- ---------- ---------- Change in net assets resulting from operations 10,126 6,298 ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Institutional Shares (7,506) (5,331) Class A Shares (1,008) (622) Class B Shares NA NA Class C Shares NA NA Advisor Shares NA NA Select Shares (347) (64) Preferred Shares (64) (14) Trust Shares (1,115) (265) ---------- ---------- Change in net assets from shareholder distributions (10,040) (6,296) ---------- ---------- Change in net assets from Fund share transactions 31,447 58,909 ---------- ---------- Change in net assets 31,533 58,911 NET ASSETS: Beginning of period 281,003 222,092 ---------- ---------- End of period $ 312,536 $ 281,003 ========== ========== Accumulated Net Investment Income/(Loss) $ 80 $ --^ ========== ========== - ---------- ^ Amount is less than five hundred dollars. See notes to financial statements. 30-31 spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) - -------------------------------------------------------------------------------- PRIME INSTITUTIONAL MONEY MARKET MONEY MARKET ----------------------- ----------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 ---------- ---------- ---------- ---------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 2,013,773 1,629,794 6,970,997 5,892,873 Dividends reinvested 5,181 4,695 34,131 26,298 Shares redeemed (1,976,758) (2,029,677) (6,581,343) (5,732,822) ---------- ---------- ---------- ---------- Total Institutional Shares 42,196 (395,188) 423,785 186,349 ---------- ---------- ---------- ---------- Class A Shares Shares issued 713,017 651,274 NA NA Dividends reinvested 24,502 16,625 NA NA Shares redeemed (567,575) (677,111) NA NA ---------- ---------- ---------- ---------- Total Class A Shares 169,944 (9,212) NA NA ---------- ---------- ---------- ---------- Class B Shares Shares issued 719 830 NA NA Dividends reinvested 24 20 NA NA Shares redeemed (493) (973) NA NA ---------- ---------- ---------- ---------- Total Class B Shares 250 (123) NA NA ---------- ---------- ---------- ---------- Class C Shares Shares issued 1,035 1,418 NA NA Dividends reinvested 43 36 NA NA Shares redeemed (892) (2,049) NA NA ---------- ---------- ---------- ---------- Total Class C Shares 186 (595) NA NA ---------- ---------- ---------- ---------- Advisor Shares Shares issued 3,062 3,359 NA NA Dividends reinvested 77 29 NA NA Shares redeemed (4,530) (1,802) NA NA ---------- ---------- ---------- ---------- Total Advisor Shares (1,391) 1,586 NA NA ---------- ---------- ---------- ---------- Select Shares Shares issued NA NA 228,248 119,127 Dividends reinvested NA NA 1,741 1,084 Shares redeemed NA NA (205,670) (108,556) ---------- ---------- ---------- ---------- Total Select Shares NA NA 24,319 11,655 ---------- ---------- ---------- ---------- Preferred Shares Shares issued NA NA 523,728 295,319 Dividends reinvested NA NA 5,486 1,297 Shares redeemed NA NA (539,857) (221,531) ---------- ---------- ---------- ---------- Total Preferred Shares NA NA (10,643) 75,085 ---------- ---------- ---------- ---------- Trust Shares Shares issued NA NA 406,473 392,172 Dividends reinvested NA NA 976 981 Shares redeemed NA NA (337,334) (257,418) ---------- ---------- ---------- ---------- Total Trust Shares NA NA 70,115 135,735 ---------- ---------- ---------- ---------- INSTITUTIONAL GOVERNMENT GOVERNMENT MONEY MARKET MONEY MARKET ---------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 ---------- ---------- -------- -------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 2,062,016 1,832,832 248,661 281,380 Dividends reinvested 3,915 2,029 54 56 Shares redeemed (1,883,205) (1,795,236) (235,396) (297,949) ---------- ---------- -------- -------- Total Institutional Shares 182,726 39,625 13,319 (16,513) ---------- ---------- -------- -------- Class A Shares Shares issued NA NA 144,749 83,238 Dividends reinvested NA NA 3,441 2,860 Shares redeemed NA NA (124,690) (108,591) ---------- ---------- -------- -------- Total Class A Shares NA NA 23,500 (22,493) ---------- ---------- -------- -------- Class B Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA ---------- ---------- -------- -------- Total Class B Shares NA NA NA NA ---------- ---------- -------- -------- Class C Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA ---------- ---------- -------- -------- Total Class C Shares NA NA NA NA ---------- ---------- -------- -------- Advisor Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA ---------- ---------- -------- -------- Total Advisor Shares NA NA NA NA ---------- ---------- -------- -------- Select Shares Shares issued 34,585 16,859 NA NA Dividends reinvested 95 -- NA NA Shares redeemed (27,035) (12,698) NA NA ---------- ---------- -------- -------- Total Select Shares 7,645 4,161 NA NA ---------- ---------- -------- -------- Preferred Shares Shares issued 1,050,752 1,001,430 NA NA Dividends reinvested 6,798 5,130 NA NA Shares redeemed (1,022,671) (1,044,855) NA NA ---------- ---------- -------- -------- Total Preferred Shares 34,879 (38,295) NA NA ---------- ---------- -------- -------- Trust Shares Shares issued 200,949 263,920 NA NA Dividends reinvested 674 490 NA NA Shares redeemed (168,945) (289,150) NA NA ---------- ---------- -------- -------- Total Trust Shares 32,678 (24,740) NA NA ---------- ---------- -------- -------- U.S. TREASURY MICHIGAN MUNICIPAL MONEY MARKET MONEY MARKET ----------------------- --------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2007 2006 2007 2006 ---------- ---------- -------- -------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 901,052 1,004,979 462,394 436,822 Dividends reinvested 2,671 1,415 1,937 1,729 Shares redeemed (870,501) (915,221) (458,054) (413,261) ---------- ---------- -------- -------- Total Institutional Shares 33,222 91,173 6,277 25,290 ---------- ---------- -------- -------- Class A Shares Shares issued NA NA 35,068 11,463 Dividends reinvested NA NA 175 13 Shares redeemed NA NA (22,222) (9,899) ---------- ---------- -------- -------- Total Class A Shares NA NA 13,021 1,577 ---------- ---------- -------- -------- Class B Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA ---------- ---------- -------- -------- Total Class B Shares NA NA NA NA ---------- ---------- -------- -------- Class C Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA ---------- ---------- -------- -------- Total Class C Shares NA NA NA NA ---------- ---------- -------- -------- Advisor Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA ---------- ---------- -------- -------- Total Advisor Shares NA NA NA NA ---------- ---------- -------- -------- Select Shares Shares issued 460,676 516,145 NA NA Dividends reinvested -- -- NA NA Shares redeemed (458,826) (537,325) NA NA ---------- ---------- -------- -------- Total Select Shares 1,850 (21,180) NA NA ---------- ---------- -------- -------- Preferred Shares Shares issued 3,869,085 3,762,766 NA NA Dividends reinvested 4,702 5,206 NA NA Shares redeemed (4,026,407) (3,909,465) NA NA ---------- ---------- -------- -------- Total Preferred Shares (152,620) (141,493) NA NA ---------- ---------- -------- -------- Trust Shares Shares issued 376,505 398,521 NA NA Dividends reinvested -- 7 NA NA Shares redeemed (415,133) (403,422) NA NA ---------- ---------- -------- -------- Total Trust Shares (38,628) (4,894) NA NA ---------- ---------- -------- -------- MUNICIPAL MONEY MARKET --------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2007 2006 -------- -------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 508,704 735,196 Dividends reinvested 760 729 Shares redeemed (493,820) (708,761) -------- -------- Total Institutional Shares 15,644 27,164 -------- -------- Class A Shares Shares issued 141,052 128,704 Dividends reinvested 940 629 Shares redeemed (130,513) (127,822) -------- -------- Total Class A Shares 11,479 1,511 -------- -------- Class B Shares Shares issued NA NA Dividends reinvested NA NA Shares redeemed NA NA -------- -------- Total Class B Shares NA NA -------- -------- Class C Shares Shares issued NA NA Dividends reinvested NA NA Shares redeemed NA NA -------- -------- Total Class C Shares NA NA -------- -------- Advisor Shares Shares issued NA NA Dividends reinvested NA NA Shares redeemed NA NA -------- -------- Total Advisor Shares NA NA -------- -------- Select Shares Shares issued 42,758 23,889 Dividends reinvested 5 1 Shares redeemed (43,119) (13,425) -------- -------- Total Select Shares (356) 10,465 -------- -------- Preferred Shares Shares issued 3,179 2,371 Dividends reinvested 1 1 Shares redeemed (4,184) (6) -------- -------- Total Preferred Shares (1,004) 2,366 -------- -------- Trust Shares Shares issued 114,876 56,164 Dividends reinvested 45 59 Shares redeemed (109,237) (38,820) -------- -------- Total Trust Shares 5,684 17,403 -------- -------- - ------------------ ^ Amount is less than five hundred shares. * Share transactions are at a Net Asset Value of $1.00 per share. See notes to financial statements. 32-33 spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) NET REALIZED NET ASSET AND UNREALIZED LESS VALUE, NET GAINS/ DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) FROM TO OF PERIOD INCOME INVESTMENTS SHAREHOLDERS - ------------------------------------------------------------------------------------------ PRIME MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ PRIME MONEY MARKET CLASS A SHARES 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) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ PRIME MONEY MARKET CLASS B SHARES 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) Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04) - ------------------------------------------------------------------------------------------ PRIME MONEY MARKET CLASS C SHARES 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) Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04) - ------------------------------------------------------------------------------------------ PRIME MONEY MARKET ADVISOR SHARES 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) Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04) - ------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 -- (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 -- (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 -- (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF TOTAL PERIOD RETURN - ----------------------------------------------------------- PRIME MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 1.02% Year ended 7/31/04 $1.00 0.65% Year ended 7/31/05 $1.00 1.91% Year ended 7/31/06 $1.00 3.97% Year ended 7/31/07 $1.00 4.94% - ----------------------------------------------------------- PRIME MONEY MARKET CLASS A SHARES 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% Year ended 7/31/07 $1.00 4.67% - ----------------------------------------------------------- PRIME MONEY MARKET CLASS B SHARES 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% Year ended 7/31/07 $1.00 3.90% - ----------------------------------------------------------- PRIME MONEY MARKET CLASS C SHARES 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% Year ended 7/31/07 $1.00 3.90% - ----------------------------------------------------------- PRIME MONEY MARKET ADVISOR SHARES 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% Year ended 7/31/07 $1.00 4.42% - ----------------------------------------------------------- INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 1.35% Year ended 7/31/04 $1.00 0.98% Year ended 7/31/05 $1.00 2.24% Year ended 7/31/06 $1.00 4.30% Year ended 7/31/07 $1.00 5.27% - ----------------------------------------------------------- INSTITUTIONAL MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.70%* Year ended 7/31/05 $1.00 2.15% Year ended 7/31/06 $1.00 4.22% Year ended 7/31/07 $1.00 5.19% - ----------------------------------------------------------- INSTITUTIONAL MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.65%* Year ended 7/31/05 $1.00 2.08% Year ended 7/31/06 $1.00 4.15% Year ended 7/31/07 $1.00 5.12% - ----------------------------------------------------------- INSTITUTIONAL MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 0.57%* Year ended 7/31/05 $1.00 1.98% Year ended 7/31/06 $1.00 4.04% Year ended 7/31/07 $1.00 5.01% - ----------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES EXPENSES NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PERIOD NET NET TO AVERAGE (000 'S) ASSETS (a) ASSETS (b) NET ASSETS - ------------------------------------------------------------------------------------- PRIME MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1,565,589 0.65% 0.54% 1.02% Year ended 7/31/04 $1,064,622 0.66% 0.54% 0.64% Year ended 7/31/05 $ 958,735 0.65% 0.54% 1.86% Year ended 7/31/06 $ 563,551 0.66% 0.54% 3.81% Year ended 7/31/07 $ 605,987 0.66% 0.54% 4.82% - ------------------------------------------------------------------------------------- PRIME MONEY MARKET CLASS A SHARES Year ended 7/31/03 $ 436,687 0.90% 0.79% 0.77% Year ended 7/31/04 $ 387,424 0.91% 0.79% 0.40% Year ended 7/31/05 $ 464,391 0.90% 0.79% 1.67% Year ended 7/31/06 $ 455,183 0.91% 0.79% 3.65% Year ended 7/31/07 $ 625,362 0.91% 0.79% 4.57% - ------------------------------------------------------------------------------------- PRIME MONEY MARKET CLASS B SHARES Year ended 7/31/03 $ 2,426 1.65% 1.22% 0.33% Year ended 7/31/04 $ 1,651 1.66% 0.95% 0.23% Year ended 7/31/05 $ 1,340 1.66% 1.51% 1.14% Year ended 7/31/06 $ 1,216 1.66% 1.54% 2.84% Year ended 7/31/07 $ 1,468 1.66% 1.54% 3.83% - ------------------------------------------------------------------------------------- PRIME MONEY MARKET CLASS C SHARES Year ended 7/31/03 $ 154 1.65% 1.14% 0.32% Year ended 7/31/04 $ 2,843 1.66% 0.98% 0.25% Year ended 7/31/05 $ 1,474 1.65% 1.46% 0.85% Year ended 7/31/06 $ 879 1.66% 1.54% 2.80% Year ended 7/31/07 $ 1,066 1.66% 1.54% 3.82% - ------------------------------------------------------------------------------------- PRIME MONEY MARKET ADVISOR SHARES Year ended 7/31/03 $ 62 1.15% 1.02% 0.46% Year ended 7/31/04 $ 36 1.16% 0.96% 0.26% Year ended 7/31/05 $ 42 1.15% 1.04% 1.28% Year ended 7/31/06 $ 1,628 1.17% 1.04% 3.71% Year ended 7/31/07 $ 237 1.16% 1.04% 4.32% - ------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $ 766,023 0.65% 0.22% 1.24% Year ended 7/31/04 $1,049,608 0.65% 0.22% 0.98% Year ended 7/31/05 $1,077,260 0.65% 0.21% 2.24% Year ended 7/31/06 $1,263,609 0.65% 0.21% 4.25% Year ended 7/31/07 $1,687,392 0.64% 0.21% 5.14% - ------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $ 13,267 0.73%** 0.30%** 0.92%** Year ended 7/31/05 $ 23,924 0.73% 0.29% 2.23% Year ended 7/31/06 $ 35,579 0.73% 0.29% 4.16% Year ended 7/31/07 $ 59,901 0.72% 0.28% 5.07% - ------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $ 27,206 0.80%** 0.37%** 0.85%** Year ended 7/31/05 $ 23,178 0.80% 0.36% 1.99% Year ended 7/31/06 $ 98,263 0.81% 0.36% 4.21% Year ended 7/31/07 $ 87,627 0.79% 0.35% 5.00% - ------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $ 17,591 0.90%** 0.47%** 0.75%** Year ended 7/31/05 $ 25,047 0.90% 0.46% 2.01% Year ended 7/31/06 $ 160,782 0.91% 0.46% 4.18% Year ended 7/31/07 $ 230,909 0.89% 0.45% 4.90% - ------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. 34-35 spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) NET REALIZED NET ASSET AND UNREALIZED LESS VALUE, NET GAINS/ DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) FROM TO OF PERIOD INCOME INVESTMENTS SHAREHOLDERS - ------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) Year ended 7/31/07 $1.00 0.05(3) --^ (0.05) - ------------------------------------------------------------------------------------------ GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES 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) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ GOVERNMENT MONEY MARKET CLASS A SHARES 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) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05) - ------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF TOTAL PERIOD RETURN - -------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 1.07% Year ended 7/31/04 $1.00 0.86% Year ended 7/31/05 $1.00 2.17% Year ended 7/31/06 $1.00 4.23% Year ended 7/31/07 $1.00 5.21% - -------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.65%* Year ended 7/31/05 $1.00 2.09% Year ended 7/31/06 $1.00 4.14% Year ended 7/31/07 $1.00 5.13% - -------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.59%* Year ended 7/31/05 $1.00 2.02% Year ended 7/31/06 $1.00 4.07% Year ended 7/31/07 $1.00 5.05% - -------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 0.51%* Year ended 7/31/05 $1.00 1.92% Year ended 7/31/06 $1.00 3.97% Year ended 7/31/07 $1.00 4.95% - -------------------------------------------------- GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.92% Year ended 7/31/04 $1.00 0.47% Year ended 7/31/05 $1.00 1.75% Year ended 7/31/06 $1.00 3.79% Year ended 7/31/07 $1.00 4.76% - -------------------------------------------------- GOVERNMENT MONEY MARKET CLASS A SHARES 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% Year ended 7/31/07 $1.00 4.60% - -------------------------------------------------- U.S. TREASURY MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 1.02% Year ended 7/31/04 $1.00 0.80% Year ended 7/31/05 $1.00 2.08% Year ended 7/31/06 $1.00 4.13% Year ended 7/31/07 $1.00 5.15% - -------------------------------------------------- U.S. TREASURY MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.59%* Year ended 7/31/05 $1.00 2.00% Year ended 7/31/06 $1.00 4.05% Year ended 7/31/07 $1.00 5.06% - -------------------------------------------------- U.S. TREASURY MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.54%* Year ended 7/31/05 $1.00 1.93% Year ended 7/31/06 $1.00 3.98% Year ended 7/31/07 $1.00 4.99% - -------------------------------------------------- U.S. TREASURY MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 0.46%* Year ended 7/31/05 $1.00 1.83% Year ended 7/31/06 $1.00 3.87% Year ended 7/31/07 $1.00 4.88% - -------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES EXPENSES NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PERIOD NET NET TO AVERAGE (000 'S) ASSETS (a) ASSETS (b) NET ASSETS - -------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $ 616,999 0.65% 0.40% 1.04% Year ended 7/31/04 $ 223,852 0.66% 0.31% 0.79% Year ended 7/31/05 $ 264,707 0.66% 0.21% 2.16% Year ended 7/31/06 $ 304,332 0.66% 0.21% 4.24% Year ended 7/31/07 $ 487,057 0.66% 0.21% 5.08% - -------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $ 5,202 0.75%** 0.30%** 0.82%** Year ended 7/31/05 $ 2,176 0.74% 0.30% 1.83% Year ended 7/31/06 $ 6,337 0.75% 0.29% 4.22% Year ended 7/31/07 $ 13,983 0.74% 0.29% 5.00% - -------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $ 276,373 0.82%** 0.37%** 0.75%** Year ended 7/31/05 $ 228,555 0.81% 0.36% 1.96% Year ended 7/31/06 $ 190,260 0.82% 0.36% 3.98% Year ended 7/31/07 $ 225,141 0.81% 0.36% 4.93% - -------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $ 70,270 0.92%** 0.47%** 0.66%** Year ended 7/31/05 $ 120,743 0.91% 0.46% 1.96% Year ended 7/31/06 $ 96,003 0.92% 0.46% 3.85% Year ended 7/31/07 $ 128,682 0.91% 0.46% 4.83% - -------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $ 275,107 0.66% 0.61% 0.84% Year ended 7/31/04 $ 173,865 0.67% 0.62% 0.47% Year ended 7/31/05 $ 144,028 0.67% 0.58% 1.70% Year ended 7/31/06 $ 127,537 0.68% 0.58% 3.73% Year ended 7/31/07 $ 141,108 0.68% 0.58% 4.66% - -------------------------------------------------------------------------------------- GOVERNMENT MONEY MARKET CLASS A SHARES Year ended 7/31/03 $ 177,390 0.91% 0.81% 0.66% Year ended 7/31/04 $ 110,153 0.92% 0.82% 0.27% Year ended 7/31/05 $ 95,375 0.92% 0.79% 1.53% Year ended 7/31/06 $ 72,896 0.93% 0.75% 3.53% Year ended 7/31/07 $ 96,572 0.93% 0.73% 4.51% - -------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1,644,905 0.65% 0.40% 0.98% Year ended 7/31/04 $ 399,195 0.65% 0.30% 0.74% Year ended 7/31/05 $ 295,584 0.65% 0.21% 2.01% Year ended 7/31/06 $ 386,757 0.65% 0.21% 4.11% Year ended 7/31/07 $ 420,260 0.65% 0.21% 5.02% - -------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $ 93,233 0.73%** 0.30%** 0.76%** Year ended 7/31/05 $ 83,171 0.73% 0.29% 2.01% Year ended 7/31/06 $ 61,992 0.73% 0.29% 3.95% Year ended 7/31/07 $ 63,885 0.73% 0.29% 4.93% - -------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1,102,963 0.80%** 0.37%** 0.69%** Year ended 7/31/05 $ 766,688 0.80% 0.36% 1.85% Year ended 7/31/06 $ 625,196 0.80% 0.36% 3.85% Year ended 7/31/07 $ 472,893 0.80% 0.36% 4.87% - -------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $ 165,402 0.90%** 0.47%** 0.58%** Year ended 7/31/05 $ 118,018 0.90% 0.46% 1.78% Year ended 7/31/06 $ 113,124 0.90% 0.46% 3.79% Year ended 7/31/07 $ 74,548 0.90% 0.46% 4.77% - -------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. 36-37 spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD) NET REALIZED NET ASSET AND UNREALIZED LESS VALUE, NET GAINS/ DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) FROM TO OF PERIOD INCOME INVESTMENTS SHAREHOLDERS - ------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.01 -- (0.01) Year ended 7/31/04 $1.00 0.01 -- (0.01) Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) Year ended 7/31/07 $1.00 0.03(3) -- (0.03) - ------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL MONEY MARKET CLASS A SHARES 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) Year ended 7/31/07 $1.00 0.03(3) -- (0.03) - ------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 -- (0.02) Year ended 7/31/06 $1.00 0.03 --^ (0.03) Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04) - ------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET CLASS A SHARES 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) Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03) - ------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03) - ------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03) - ------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03) - ------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF TOTAL PERIOD RETURN - ------------------------------------------------ MICHIGAN MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.88% Year ended 7/31/04 $1.00 0.59% Year ended 7/31/05 $1.00 1.45% Year ended 7/31/06 $1.00 2.65% Year ended 7/31/07 $1.00 3.22% - ------------------------------------------------ MICHIGAN MUNICIPAL MONEY MARKET CLASS A SHARES 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% Year ended 7/31/07 $1.00 3.04% - ------------------------------------------------ MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $1.00 0.91% Year ended 7/31/04 $1.00 0.68% Year ended 7/31/05 $1.00 1.55% Year ended 7/31/06 $1.00 2.88% Year ended 7/31/07 $1.00 3.56% - ------------------------------------------------ MUNICIPAL MONEY MARKET CLASS A SHARES 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% Year ended 7/31/07 $1.00 3.30% - ------------------------------------------------ MUNICIPAL MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $1.00 0.47%* Year ended 7/31/05 $1.00 1.47% Year ended 7/31/06 $1.00 2.80% Year ended 7/31/07 $1.00 3.47% - ------------------------------------------------ MUNICIPAL MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $1.00 0.42%* Year ended 7/31/05 $1.00 1.40% Year ended 7/31/06 $1.00 2.73% Year ended 7/31/07 $1.00 3.40% - ------------------------------------------------ MUNICIPAL MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $1.00 0.34%* Year ended 7/31/05 $1.00 1.30% Year ended 7/31/06 $1.00 2.62% Year ended 7/31/07 $1.00 3.30% - ------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES EXPENSES NET ASSETS, TO TO INVESTMENT END OF AVERAGE AVERAGE INCOME PERIOD NET NET TO AVERAGE (000 'S) ASSETS (a) ASSETS (b) NET ASSETS - ---------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $ 247,805 0.67% 0.54% 0.88% Year ended 7/31/04 $ 197,225 0.67% 0.54% 0.59% Year ended 7/31/05 $ 164,404 0.67% 0.54% 1.42% Year ended 7/31/06 $ 189,695 0.67% 0.54% 2.63% Year ended 7/31/07 $ 195,970 0.67% 0.54% 3.17% - ---------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET CLASS A SHARES Year ended 7/31/03 $ 19 0.92% 0.64% 0.90% Year ended 7/31/04 $ 18 0.91% 0.64% 0.48% Year ended 7/31/05 $ 110 0.93% 0.69% 1.45% Year ended 7/31/06 $ 1,686 0.93% 0.70% 2.77% Year ended 7/31/07 $ 14,710 0.92% 0.70% 3.07% - ---------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/03 $ 199,439 0.78% 0.42% 0.92% Year ended 7/31/04 $ 136,302 0.80% 0.38% 0.67% Year ended 7/31/05 $ 187,829 0.80% 0.38% 1.55% Year ended 7/31/06 $ 214,995 0.81% 0.25% 2.88% Year ended 7/31/07 $ 230,703 0.79% 0.21% 3.49% - ---------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET CLASS A SHARES Year ended 7/31/03 $ 53,079 1.03% 0.52% 0.80% Year ended 7/31/04 $ 17,590 1.05% 0.63% 0.42% Year ended 7/31/05 $ 25,516 1.06% 0.63% 1.30% Year ended 7/31/06 $ 27,027 1.06% 0.50% 2.62% Year ended 7/31/07 $ 38,516 1.04% 0.46% 3.24% - ---------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET SELECT SHARES 10/20/03(c) to 7/31/04 $ 863 0.91%** 0.46%** 0.62%** Year ended 7/31/05 $ 86 0.89% 0.46% 0.99% Year ended 7/31/06 $ 10,551 0.89% 0.29% 3.23% Year ended 7/31/07 $ 10,198 0.87% 0.29% 3.43% - ---------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET PREFERRED SHARES 10/20/03(c) to 7/31/04 $ 637 0.98%** 0.53%** 0.55%** Year ended 7/31/05 $ 36 0.97% 0.53% 0.97% Year ended 7/31/06 $ 2,402 0.96% 0.36% 3.27% Year ended 7/31/07 $ 1,398 0.94% 0.36% 3.34% - ---------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET TRUST SHARES 10/20/03(c) to 7/31/04 $ 244 1.06%** 0.63%** 0.44%** Year ended 7/31/05 $ 8,625 1.04% 0.63% 1.70% Year ended 7/31/06 $ 26,028 1.06% 0.49% 2.81% Year ended 7/31/07 $ 31,721 1.04% 0.46% 3.26% - ---------------------------------------------------------------------------------- NOTES TO FINANCIAL HIGHLIGHTS (a) Before waivers and reimbursements. (b) Net of waivers and reimbursements. (c) Reflects date of commencement of operations. ^ Amount is less than $0.005. * Not annualized. ** Annualized. (3) Average shares method used in calculation. @ During the year ended July 31, 2007, the Advisor paid money to certain Funds related to an SEC investigation of BISYS Fund Services, a former service provider to the Funds. See Note 3 in Notes to Financial Statements for further information. The payment is reported as Increase from payment by the Advisor in the Statements of Operations. Net Investment Income per share in these Financial Highlights includes the impact of this payment however the amount per share is less than $.005. The Funds distributed the income related to this payment after July 31, 2007. This payment into the Funds had no impact on total return for the year ended July 31, 2007. See notes to financial statements. 38-39 spread FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 2007 - -------------------------------------------------------------------------------- (1) ORGANIZATION Fifth Third Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company established as a Massachusetts business trust. The Trust consists of thirty-six separate investment portfolios, one of which has not commenced investment operations. The accompanying financial statements and notes relate only to the following investment portfolios of the Trust, each of which is diversified (individually a "Fund" and collectively the "Funds"). Dollar amounts are in thousands unless otherwise indicated. PORTFOLIO NAME Fifth Third Prime Money Market Fund ("Prime Money Market") Fifth Third Institutional Money Market Fund ("Institutional Money Market") Fifth Third Institutional Government Money Market Fund ("Institutional Government Money Market") Fifth Third Government Money Market Fund ("Government Money Market") Fifth Third U.S. Treasury Money Market Fund ("U.S. Treasury Money Market") Fifth Third Michigan Municipal Money Market Fund ("Michigan Municipal Money Market") Fifth Third Municipal Money Market Fund ("Municipal Money Market") Government Money Market and Michigan Municipal Money Market each have two classes of shares: Institutional and Class A Shares. Institutional Money Market, Institutional Government Money Market and U.S. Treasury Money Market have four classes of shares: Institutional, Select, Preferred and Trust Shares. Prime Money Market has five classes of shares: Institutional, Class A, Class B, Class C and Advisor Shares. Municipal Money Market has five classes of shares: Institutional, Class A, Select, Preferred and Trust Shares. All Funds' Class B shares are closed for purchases at July 31, 2007. Each class of shares for each Fund has identical rights and privileges except with respect to administrative services fees paid by Class C, Select, Preferred and Trust Shares, distribution services fees paid by Class A, Class B, Class C and Advisor Shares, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnification. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as, the reported amounts of increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. SECURITIES VALUATIONS--Investments of the Funds are valued at either amortized cost, which approximates market value, or at original cost, which, combined with accrued interest, approximates market value. Under the amortized cost method, discount or premium is accreted or amortized on a constant basis to the maturity of the security. Investments in other open-end investment companies are valued at net asset value as reported by such investment companies. 40 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--The Funds will enter into repurchase agreements only with banks and other recognized financial institutions, such as broker/dealers, which are deemed by Fifth Third Asset Management, Inc. to be creditworthy pursuant to guidelines and/or standards reviewed or established by the Trustees. It is the policy of the Funds to require the custodian or sub-custodian bank to take possession, have legally segregated in the Federal Reserve Book Entry System, or have segregated within the custodian bank's vault, all securities segregated as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement transaction. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on the accrual basis and includes, where applicable, amortization of premium or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. OTHER--Expenses directly attributable to a Fund are charged to the Fund, while expenses which are attributable to more than one Fund of the Trust are allocated among the respective Funds based on their relative net assets or another appropriate basis. Income, expenses, and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets, except that each class separately bears expenses related specifically to that class, such as administrative services and distribution fees. DISTRIBUTIONS TO SHAREHOLDERS-- Dividends from net investment income are declared daily and paid monthly and distributable net realized gains, if any, are declared and distributed at least annually. Dividends from net investment income and from net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for expiring capital loss carryforwards and deferrals of certain losses. To the extent distributions would exceed net investment income and net realized gains for tax purposes, they are reported as a return of capital. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassifications. Accordingly, at July 31, 2007, reclassifications were recorded as follows: INCREASE INCREASE (DECREASE) (DECREASE) INCREASE ACCUMULATED ACCUMULATED NET (DECREASE) NET REALIZED PAID-IN INVESTMENT GAIN CAPITAL INCOME (LOSS) - -------------------------------------------------------------------------------- Prime Money Market $--^ $--^ $--^ Institutional Money Market (1) 1 --^ Institutional Government Money Market --^ --^ --^ Government Money Market (1) 1 --^ U.S. Treasury Money Market (1) --^ 1 Michigan Municipal Money Market (1) 1 --^ Municipal Money Market --^ --^ --^ FEDERAL TAXES--It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income or excise taxes has been made. 41 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- NEW ACCOUNTING PRONOUNCEMENTS--In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund's tax return to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than- not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required no later than the last business day of the first financial statement reporting period for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has not completed its analysis on the impact to the Funds' the financial statements of adopting FIN 48. In September 2006, FASB issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS157"). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. FAS 157 applies to fair value measurements already required or permitted by existing standards. The changes to current generally accepted accounting principles from the application of this statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. While Management is currently assessing FAS157, as of July 31, 2007, Management does not believe the adoption of FAS 157 will impact the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets. (3) RELATED PARTY TRANSACTIONS Dollar amounts in this note are in whole dollars except as noted. INVESTMENT ADVISORY FEE--Fifth Third Asset Management, Inc. ("FTAM" or the "Advisor") is the Funds' investment advisor. FTAM, a wholly owned subsidiary of Fifth Third Bank, is an indirect subsidiary of Fifth Third Bancorp, a publicly traded financial services company. For its advisory services, FTAM receives an investment advisory fee computed daily and paid monthly based on each Fund's average daily net assets. For certain Funds, FTAM has voluntarily agreed to waive a portion of its advisory fee. In addition, FTAM has contractually agreed to waive fees and/or reimburse certain Funds pursuant to an expense limitation agreement. See below, including the table of advisory fee, waiver and expense limitations. ADMINISTRATION FEE-- FTAM is the Trust's administrator who generally assists in all aspects of the Trust's administration and operations including providing the Funds with certain administrative personnel and services necessary to operate the Funds. FTAM receives administration fees at the annual rates shown below which are computed daily and paid monthly based on average daily net assets of the Trust; the fees are prorated among the Funds based upon their relative average daily net assets. ADMINISTRATION FEE TRUST AVERAGE DAILY NET ASSETS 0.20% Up to $1 billion 0.18% In excess of $1 billion up to $2 billion 0.17% In excess of $2 billion up to $15 billion For certain Funds, FTAM has voluntarily agreed to waive a portion of its net asset based administration fee. In addition, a $10,000 annual per class per Fund fee applies beyond the first four classes per Fund, and each Fund that commences operations after September 18, 2002 is subject to an annual $20,000 minimum fee. FTAM has contractually agreed to waive fees and/or reimburse certain Funds pursuant to an expense limitation agreement. See the table of advisory fee, waiver and expense limits below. 42 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- Pursuant to a separate agreement with FTAM, BISYS Fund Services Limited Partnership ("BISYS"), a wholly owned subsidiary of The BISYS Group, Inc., performed sub-administrative services on behalf of the Funds of the Trust including providing certain administrative personnel and services necessary to operate the Trust, for which it earned $1,407,911 in fees for the ten months ended May 31, 2007, computed as a percentage up to 0.0145% of the average daily net assets of the Trust, subject to certain minimums and reimbursement of certain expenses. State Street became the sub-administrator June 1, 2007 and is neither an affiliate of the Funds nor that of the Funds' affiliates. Sub-administration fees are an expense of FTAM. Under a Compliance Services Agreement between the Funds, Fifth Third Bank, and BISYS (the "CCO Agreement"), a BISYS employee was made available to serve as the Funds' Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS also provided infrastructure and support in implementing the written policies and procedures comprising the Funds' compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the Funds paid BISYS $200,000 per year subject to adjustment annually by the percentage increase in consumer prices for services as measured by the United States Consumer Price Index. BISYS paid the salary and other compensation earned by any such individuals as employees of BISYS. On November 21, 2006, the Trustees voted to terminate the CCO and the CCO Agreement, with the CCO's termination to become effective no later than February 21, 2007. The CCO Agreement was terminated May 31, 2007. The Trustees also designated a new CCO, with such designation to become effective no later than February 21, 2007. The new CCO was appointed effective February 20, 2007. ADVISORY FEE, WAIVERS, EXPENSE LIMITATIONS-- In its capacity as Advisor and Administrator, FTAM entered into an expense limitation agreement with the Funds. Under the terms of the expense limitation agreement, to the extent that ordinary operating expenses incurred by a Fund in any fiscal year exceed the expense limit for the Fund, such excess amount will be the liability of the Advisor and Administrator. If the operating expenses are less than the expense limit for the Fund, the Advisor and Administrator shall be entitled to reimbursement of the fees waived or reduced to the extent that the operating expenses and the amount reimbursed do not exceed such expense limit for the Fund, under the period of the agreement (currently for the 12 month period commencing November 29, 2006). Such reimbursement shall be paid only while the expense limitation agreement is in effect and only if such amount paid, together with all other amounts reimbursed under this plan in the fiscal year, does not cause the Fund to exceed the expense limit. The amounts recoverable by FTAM (in thousands) for the period from November 29, 2006 through July 31, 2007 that may potentially be paid by the Funds, along with annual fee rates, waivers and expense limitations are as follows: ADMINI- ADVISORY EXPENSE STRATION ADVISORY FEE LIMITATION FEE FUND FEE WAIVER *** WAIVER - ---------------------------------------------------------------------- Prime Money Market 0.40% NA C 0.08% Institutional Money Market 0.40% 0.30% C 0.07% Institutional Government Money Market 0.40% 0.30% C 0.045% Government Money Market 0.40% NA V 0.09% U.S. Treasury Money Market 0.40% 0.30% C 0.10% Michigan Municipal Money Market 0.40% NA C 0.065% Municipal Money Market 0.50% 0.40% C 0.04% CLASS EXPENSE LIMITATIONS** ----------------------------------------------- REIMBURSE- MENT RECOVER- FUND INSTITUTIONAL A B C ADVISOR ABLE^ - --------------------------------------------------------------------------------------- Prime Money Market 0.54% 0.79% 1.54% 1.54% 1.04% $872 Institutional Money Market 0.21% NA NA NA NA 5,383 Institutional Government Money Market 0.21% NA NA NA NA 2,275 Government Money Market 0.58% 0.73%* NA NA NA NA U.S. Treasury Money Market 0.21% NA NA NA NA 3,341 Michigan Municipal Money Market 0.54% 0.70%* NA NA NA 170 Municipal Money Market 0.21% 0.46% NA NA NA 1,135 * In addition to any other expense limitations applicable to certain Funds, the Distributor has voluntarily agreed to limit the expenses of certain classes by means of waiving a portion of the 12b-1 fee as follows: Government Money Market Class A - 0.10% Michigan Municipal Money Market Class A - 0.09% ** The annual limitations shown include 12b-1 or administrative services fees and are net of all waivers, voluntary or contractual. The annual limitations are 0.29%, 0.36% and 0.46%, respectively, for the Select, Preferred and Trust Shares of each of Institutional Money Market, Institutional Government Money Market, U.S. Treasury Money Market, and Municipal Money Market. *** C - Contractual, V - Voluntary as of November 29, 2006. ^ The cumulative reimbursement in thousands that may be potentially recoverable by FTAM under the expense limitation agreements for the period from November 29, 2006 through July 31, 2007. 43 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- ACCOUNTING AND CUSTODY FEES-- FTAM is the Funds' accounting agent. FTAM receives accounting fees at the annual rates shown below which are computed daily and paid monthly based on average daily net assets of each Fund, subject to a $30,000 per fund annual minimum, plus out-of-pocket expenses. ACCOUNTING FEE FUND AVERAGE DAILY NET ASSETS 0.020% Up to $500 million 0.015% $500 million and up to $1 billion 0.010% Over $1 billion In addition, a $10,000 annual flat per class fee per fund applies beyond the initial class of shares. Pursuant to a separate agreement with FTAM, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), a wholly owned subsidiary of The BISYS Group, Inc. performed sub-accounting services on behalf of the Funds of the Trust, for which it earned $2,464,294 in fees for the ten months ended May 31, 2007, computed as a percentage, up to 0.015%, of the average daily net assets of each Fund. This amount also reflects a $10,000 annual flat per class fee per fund beyond the initial class of shares, and reimbursement of certain fees and other miscellaneous expenses. State Street became the sub-accountant as of June 1, 2007. Sub-accounting fees are an expense of FTAM. Fifth Third Bank, the Funds' custodian until May 31, 2007, received custody fees computed at the annual rates shown below based on average daily net assets of each Funds, plus transaction charges. CUSTODY FEE FUND AVERAGE DAILY NET ASSETS 0.0100% Up to $25 million 0.0075% $25 million up to $100 million 0.0050% $100 million up to $200 million 0.0025% Over $200 million Custody fees and expenses are paid by the Funds. The Funds of the Trust incurred custody fees and expenses from Fifth Third Bank for the ten months ended May 31, 2007 in the aggregate amount of $1,060,981. State Street became the Funds' custodian as of June 1, 2007. Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining competitive expense ratios. DISTRIBUTION AND/OR SERVICE FEES, WAIVERS--The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor, Inc. (the "Former Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., served as the Trust's Distributor/principal underwriter until May 11, 2007; ALPS Funds Distributor, Inc., doing business as FTAM Funds Distributor, Inc. ("ALPS") became the Trust's Distributor/principal underwriter as of May 14, 2007. Under the terms of the Plan, the Funds will compensate the Distributor from the net assets of the Funds' Class A, Class B, Class C and Advisor Shares to finance activities intended to result in the sales of each Funds' shares. The Plan provides that the Funds will incur fees accrued daily and paid monthly to the Distributor at annual rates up to that shown below based on average daily net assets of the respective classes in the Plan. Further, as of November 29, 2006, the Former Distributor until its termination, and the present Distributor have voluntarily agreed to limit the expenses of certain classes of certain funds by way of waiving a portion of the Distribution and/or Service Fee; annual 12b-1 fees and voluntary waivers are shown below. CLASS DISTRIBUTION/SERVICE FEE DISTRIBUTION/SERVICE FEE WAIVER Class A 0.25% 0.10% (Government Money Market), 0.09% (Michigan Municipal Money Market) Class B 1.00% NA Class C 0.75% NA Advisor 0.50% NA 44 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- The Distributor/principal underwriter earns/receives commissions on certain sales of Class A and Advisor Share sales (most of which is reallowed to the selling broker-dealer) as well as contingent deferred sales commissions on certain redemptions of Class A, B, and C Shares (all of which is paid to the finance agent who financed advance commissions, as applicable, on sales of these shares). As of May 1, 2007, FTAM is the Class C advance commission finance agent. No CDSCs on Class C shares from May 14, 2007 through July 31, 2007 are applicable to FTAM. The commissions earned and reallowed during the year for all Funds of the Trust are as follows: FORMER TOTAL DISTRIBUTOR DISTRIBUTOR (ALPS) Fiscal year ACTIVITY From 8/1/06-5/11/07 From 5/14/07-7/31/07 ended 7/31/07 Commissions earned/received $1,122,343 $419,956 $1,542,299 Commissions reallowed to affiliated broker-dealers 951,008 286,582 1,237,590 Commissions reallowed to unaffiliated broker-dealers 38,203 106,375 144,578 ADMINISTRATIVE SERVICES FEE--The Trust had an Administrative Services Agreement with the Former Distributor until May 14, 2007 and entered into a similar agreement with ALPS as of May 14, 2007 with respect to Class C, Select, Preferred and Trust Shares. Under the Agreements, certain administrative services and maintenance of shareholder accounts were provided these shareholders during the year. The Former Distributor received and the Distributor receives, as do other financial institutions, which may include affiliates of the Advisor, fees computed at annual rates up to those shown below, based on average daily net assets of the respective classes. CLASS ADMINISTRATIVE SERVICES FEE Class C 0.25% Select 0.08% Preferred 0.15% Trust 0.25% TRANSFER AND DIVIDEND DISBURSING AGENT--BISYS Ohio served as transfer and dividend disbursing agent until May 14, 2007, after which Boston Financial Data Services ("BFDS") assumed these functions for the Funds effective May 14, 2007. BFDS is neither an affiliate of the Funds nor that of the Funds' affiliates. Transfer agent fees for BISYS Ohio were computed at the following annual rates based on the average daily net assets of each Fund, plus annual flat fees for each additional share class: PRIME MONEY MARKET, INSTITUTIONAL MONEY MARKET, GOVERNMENT MONEY MARKET, INSTITUTIONAL GOVERNMENT MICHIGAN MUNICIPAL MONEY MONEY MARKET, U.S. TREASURY MARKET, MUNICIPAL MONEY MARKET MONEY MARKET AVERAGE DAILY NET ASSETS 0.0195% 0.0185% First $700 million 0.0170% 0.0170% From $700 million to $1 billion 0.0155% 0.0155% From $1billion to $2 billion 0.0130% 0.0125% Over $2 billion Pursuant to a Services Agreement, BISYS Ohio retained FTAM to perform certain services for the Trust and each Fund thereunder related to the Transfer Agency Agreement between the Trust and BISYS Ohio. FTAM received a fee at the annual rate of 0.005% from BISYS Ohio computed as a percentage of the average daily net assets of each Fund. FTAM earned $516,192 in fees for the fiscal year to date period through May, 2007, when this agreement was terminated. 45 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- Pursuant to a Services Agreement with the Trust dated May 14, 2007, FTAM provides certain services similar to that under the former agreement on behalf of the Trust. Under this agreement, FTAM's fees are paid monthly and are accrued daily based upon each Fund's relative average daily net assets at the aggregate annual rate of $370,000. FTAM earned $77,083 from May 14, 2007 through July 31, 2007 under this agreement. OTHER--Certain officers of the Trust are also officers of FTAM and or its affiliates; certain officers of the Trust who served until their resignation in May, 2007 were affiliated with the above companies with the exception of State Street, BFDS and ALPS. Certain non-principal officers of the Trust effective June 28, 2007 are also employees of State Street. None of these officers are paid any fees by the Trust. PAYMENTS BY AFFILIATES-- BISYS Fund Services, Inc. ("BISYS"), which formerly provided various services to the Trust, reached a settlement and entered into an order (the "Order") with the Securities and Exchange Commission ("SEC") regarding the SEC's investigation of BISYS's past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Neither the Trust nor FTAM was a party to the Order, nor is the Trust or FTAM bound by the Order or its findings. It is unclear the extent to which the Trust, FTAM and certain of its former service providers are or may be affected by the SEC's investigation of BISYS or by the Order. In response to the SEC's inquiries related to this matter, including those of the Trust's former service arrangements with BISYS, FTAM made a one time contribution of money to certain Funds of the Trust during the year ended July 31, 2007. The affected Funds and the amounts paid to such Funds were determined based on various factors such as certain Fund expenses during 1999 through 2001 as well as the applicable Funds' net assets during this time period. The amount credited to each class of the applicable Funds was determined according to the relative net assets of such classes on the date the amounts were recognized. (4) LINE OF CREDIT The Trust participated in a credit agreement with Citibank N.A. until the Agreement expired in November, 2006. Under the terms of the agreement, the Trust was able to borrow up to $75 million. The purpose of the agreement was to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Citibank N.A. received an annual facility fee of 0.09% on the aggregate principal amount committed under the agreement for providing the Line of Credit. Each Fund paid a pro-rata portion of this facility fee, plus any interest on amounts borrowed, if any. There were no borrowings against the line of credit during the period until the Agreement expired. (5) FEDERAL TAX INFORMATION The tax character of distributions paid during the fiscal years ended July 31, 2007 and 2006 was as follows: JULY 31, 2007 -------------------------------------------- ORDINARY TAX TOTAL INCOME EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID -------------------------------------------- Prime Money Market $54,639 $ -- $54,639 Institutional Money Market 93,444 -- 93,444 Institutional Government Money Market 36,302 -- 36,302 Government Money Market 10,392 -- 10,392 U.S. Treasury Money Market 55,939 -- 55,939 Michigan Municipal Money Market -- 6,205+ 6,205 Municipal Money Market -- 10,040+ 10,040 JULY 31, 2006* -------------------------------------------- ORDINARY TAX TOTAL INCOME EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID -------------------------------------------- Prime Money Market $47,592 $ -- $47,592 Institutional Money Market 54,536 -- 54,536 Institutional Government Money Market 24,332 -- 24,332 Government Money Market 7,859 -- 7,859 U.S. Treasury Money Market 45,276 -- 45,276 Michigan Municipal Money Market --^ 4,472 4,472 Municipal Money Market -- 5,805 5,805 + In addition, for Federal tax purposes, the following amounts were distributions payable at July 31, 2006 that were paid in the year ending July 31, 2007: Michigan Municipal Money Market $500 Municipal Money Market 803 * Represents distributions on a cash basis. 46 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- As of July 31, 2007, the components of accumulated earnings/(deficit) on a tax basis was as follows: TOTAL UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED ACCUMULATED TAX ORDINARY CAPITAL AND EARNINGS/ EXEMPT INCOME INCOME OTHER LOSSES (DEFICIT) Prime Money Market $ -- $ 559 $ (87) $472 Institutional Money Market -- 50 (1) 49 Institutional Government Money Market -- 13 (2) 11 Government Money Market -- 493 (2) 491 U.S. Treasury Money Market -- 674 (121) 553 Michigan Municipal Money Market (5) -- (3) (8) Municipal Money Market 81 2 -- 83 As of July 31, 2007, the following Funds have net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by U.S. Treasury regulations: EXPIRATION YEAR TOTAL -------------------------------------- ----- 2008 2009 2010 2014 2015 ---- ---- ---- ---- ---- Prime Money Market $-- $-- $-- $92 $-- $92 Institutional Money Market -- -- -- 1 -- 1 Institutional Government Money Market -- -- -- --^ --^ --^ Government Money Market 2 -- -- -- -- 2 U.S. Treasury Money Market 62 59 -- -- -- 121 Michigan Municipal Money Market -- -- -- -- -- -- Municipal Money Market -- -- -- -- -- -- During the tax year ended July 31, 2007, the Funds utilized capital loss carryforwards in the following amounts: AMOUNT UTILIZED Prime Money Market $--^ Institutional Money Market --^ Government Money Market --^ U.S. Treasury Money Market 20 Municipal Money Market 3 ^ Represents fewer than five hundred dollars. (6) CONCENTRATIONS Michigan Municipal Money Market holds a significant portion of its investments in debt obligations issued by each of the States of Ohio and Michigan, and each of their respective political subdivisions, agencies and public authorities. The Fund is more susceptible to factors adversely affecting issuers of municipal securities from these states than a Fund that is not concentrated in these issuers to the same extent. 47 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2007 - -------------------------------------------------------------------------------- (7) SUBSEQUENT EVENT PROPOSED FUND MERGERS--At a special meeting of the Board of Trustees on August 7, 2007, the Trustees approved several Agreements and Plans of Reorganization (the "Plans") which propose combinations of certain funds of the Trust. Two funds within these financial statements are parties to a proposed reorganization, whereby Prime Money Market proposes to acquire Government Money Market. Each of the proposed mergers is independent of and not conditioned on the others. The Funds of the Trust that are the subjects of the proposed mergers filed a combined proxy/prospectus filing with the Securities and Exchange Commission in August, 2007 indicating anticipated shareholder meeting and closing dates to be on or about November 16, 2007. The Plans are subject to approval of the shareholders of the acquired Funds. 48 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- To the Shareholders and Trustees of Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fifth Third Prime Money Market Fund, Fifth Third Institutional Money Market Fund, Fifth Third Institutional Government Money Market Fund, Fifth Third Government Money Market Fund, Fifth Third U.S. Treasury Money Market Fund, Fifth Third Michigan Municipal Money Market Fund and Fifth Third Municipal Money Market Fund (separate portfolios constituting Fifth Third Funds, hereafter referred to as the "Funds") at July 31, 2007, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods in the five years then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Columbus, Ohio September 28, 2007 49 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT ^ The Trustees and Officers of the Funds, age, the position they hold with the Funds, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the fund complex that the Trustee oversees and any other directorships held by the Trustee are listed in the two tables immediately following. The business address of the persons listed below is 38 Fountain Square Plaza, Cincinnati, Ohio 45202. INDEPENDENT TRUSTEES NUMBER OF PORTFOLIOS POSITION(S) TERM OF IN FUND HELD OFFICE AND COMPLEX OTHER NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS AGE FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------ Edward Burke Carey* Chairman- Indefinite, Carey Realty Investments, 36 Canisius Age: 62 Board of January Inc. (real estate College-Trustee. Trustees 1989-Present development and consulting), President, 1990-Present. David J. Durham Trustee Indefinite, Chairman of Clipper 36 None Age: 62 June 2001- Products, Inc., a Present wholesale distributor, 2005-Present. Chairman of Norris Products Corp., a wholesale distributor, 2005-Present. President and Chief Executive Officer of Clipper Products, Inc., 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, EVP and Managing Director, 36 Trustee for Age: 57 March DHR International Hanover College. 2001-Present (executive recruiter), National Underground April 2007-Present. Freedom Center, Consultant, Duke Energy, The Cincinnati Zoo, April 2006-March 2007. The Ohio Arts Council, President, Cinergy The Cincinnati Foundation, November Parks Foundation, 2001-March 2006. and Playhouse in the Park. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 36 Printing Age: 62 October Present. Business Industries of 2001- Present Management Consultant, America: Web Offset April 2000-February 2002. Assoc., Director; Master Printers of America, Director. David J. Gruber Trustee Indefinite, President, DJG Financial 36 None Age: 43 December Consulting (accounting and 2003-Present finance consultant), June 2007-Present. Resources Global Professionals, Project Professional, December 2004-June 2007. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO, April 2003-December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director, April 1996-March 2003. ^ Additional disclosure can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. * Mr. Carey was treated by the Trust as an "interested person" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor. Mr. Carey was an "interested person" because of his past business transactions with Fifth Third Bank and its affiliates. As of August 1, 2007, Mr. Carey was not an "interested person" of the Trust and the Investment Advisor. 50 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- OFFICERS TERM OF POSITION(S) OFFICE AND HELD LENGTH OF NAME WITH THE TIME PRINCIPAL OCCUPATION(S) AND AGE FUNDS SERVED DURING THE PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------- E. Keith Wirtz President Indefinite, April President, Fifth Third Asset Management, Age: 47 2007-Present Inc. 2003- Present, Managing Partner, Paladin Investment Associates, LLC, 2000-2003. Matthew A. Ebersbach Vice President Indefinite, March Assistant Vice President of Fifth Third Bank Age: 37 2006-Present since 2001. Richard B. Ille Vice President Indefinite, April Managing Director, Products and Marketing, Age: 42 2007-Present Fifth Third Asset Management, Inc., 2001-Present. James A. Mautino Anti-Money Indefinite, Vice President and Chief Compliance Officer, Age: 39 Laundering and February 2007- Fifth Third Asset Management, Inc. August Chief Compliance Present 2005-Present, Director of Risk and Officer Compliance, State Street Bank and Trust Company, October 1995-July 2005. Christopher Bell Treasurer Indefinite, April Chief Operating Officer, Fifth Third Asset Age: 37 2007-Present Management, Inc., 2005-Present, Senior Vice President and Chief Financial Officer, Investment Advisors Division, Fifth Third Bank 1998-2005. Matthew A. Swendiman Secretary Indefinite, April Assistant Vice President and Counsel of Fifth Age: 34 2007-Present Third Bank, March 2006 to Present. Attorney, Kirkpatrick & Lockhart Nicholson Graham, LLP, May 2005-March 2006. Counsel, The Phoenix Companies, Inc., July 2002-April 2005. Assistant Vice President and Assistant Counsel, Conseco Capital Management, Inc., December 2000-June 2002. Christopher Roetzer Assistant Treasurer Indefinite, June Vice President, State Street Bank and Trust Age: 44 2007-Present Company (a Massachusetts trust company) from 2004 to Present. Vice President, Assistant Treasurer and Principal Accounting Officer, IDEX Mutual Funds, AEGON/Transamerica Series Fund, Inc.; various AEGON USA affiliates, 1986-2003. Tracy Kaufman Assistant Treasurer Indefinite, June Officer, State Street Bank and Trust Company Age: 48 2007-Present (a Massachusetts trust company) from 1986 to Present. Francine S. Hayes Assistant Secretary Indefinite, June Vice President and Counsel, State Street Age: 39 2007-Present Bank and Trust Company (a Massachusetts trust company) from 2004 to Present; and Assistant Vice President and Counsel, State Street Bank and Trust Company, from 2001 to 2004. 51 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- EXPENSE EXAMPLE As a shareholder of the Fifth Third Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fifth Third Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2007 through July 31, 2007. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, and $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. EXPENSE EXPENSE PAID RATIO BEGINNING ENDING DURING DURING ACCOUNT ACCOUNT PERIOD* PERIOD VALUE VALUE 2/1/07 - 2/1/06 - 2/1/07 7/31/07 7/31/07 7/31/07 - ------------------------------------------------------------------------------------------------- Prime Money Market Institutional Shares $1,000.00 $1,024.20 $2.71 0.54% Class A Shares 1,000.00 1,022.90 3.91 0.78% Class B Shares 1,000.00 1,019.20 7.71 1.54% Class C Shares 1,000.00 1,019.10 7.71 1.54% Advisor Shares 1,000.00 1,021.70 5.16 1.03% Institutional Money Market Institutional Shares 1,000.00 1,025.80 1.05 0.21% Select Shares 1,000.00 1,025.40 1.41 0.28% Preferred Shares 1,000.00 1,025.10 1.76 0.35% Trust Shares 1,000.00 1,024.60 2.26 0.45% Institutional Government Money Market Institutional Shares 1,000.00 1,025.50 1.05 0.21% Select Shares 1,000.00 1,025.10 1.46 0.29% Preferred Shares 1,000.00 1,024.70 1.81 0.36% Trust Shares 1,000.00 1,024.20 2.31 0.46% Government Money Market Institutional Shares 1,000.00 1,023.30 2.91 0.58% Class A Shares 1,000.00 1,022.60 3.56 0.71% U.S. Treasury Money Market Institutional Shares 1,000.00 1,025.00 1.05 0.21% Select Shares 1,000.00 1,024.60 1.46 0.29% Preferred Shares 1,000.00 1,024.30 1.81 0.36% Trust Shares 1,000.00 1,023.80 2.31 0.46% Michigan Municipal Money Market Institutional Shares 1,000.00 1,016.20 2.70 0.54% Class A Shares 1,000.00 1,015.20 3.45 0.69% Municipal Money Market Institutional Shares 1,000.00 1,017.80 1.05 0.21% Class A Shares 1,000.00 1,016.50 2.25 0.45% Select Shares 1,000.00 1,017.40 1.45 0.29% Preferred Shares 1,000.00 1,017.00 1.80 0.36% Trust Shares 1,000.00 1,016.50 2.30 0.46% * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 52 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may however use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. EXPENSE EXPENSE PAID RATIO BEGINNING ENDING DURING DURING ACCOUNT ACCOUNT PERIOD* PERIOD VALUE VALUE 2/1/07 - 2/1/06 - 2/1/07 7/31/07 7/31/07 7/31/07 - ------------------------------------------------------------------------------------------------- Prime Money Market Institutional Shares $1,000.00 $1,022.12 $2.71 0.54% Class A Shares 1,000.00 1,020.93 3.91 0.78% Class B Shares 1,000.00 1,017.16 7.70 1.54% Class C Shares 1,000.00 1,017.16 7.70 1.54% Advisor Shares 1,000.00 1,019.69 5.16 1.03% Institutional Money Market Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.41 1.40 0.28% Preferred Shares 1,000.00 1,023.06 1.76 0.35% Trust Shares 1,000.00 1,022.56 2.26 0.45% Institutional Government Money Market Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.46 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Government Money Market Institutional Shares 1,000.00 1,021.92 2.91 0.58% Class A Shares 1,000.00 1,021.27 3.56 0.71% U.S. Treasury Money Market Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Michigan Municipal Money Market Institutional Shares 1,000.00 1,022.12 2.71 0.54% Class A Shares 1,000.00 1,021.37 3.46 0.69% Municipal Money Market Institutional Shares 1,000.00 1,023.75 1.05 0.21% Class A Shares 1,000.00 1,022.56 2.26 0.45% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 53 This page intentionally left blank. 54 This page intentionally left blank. 55 This page intentionally left blank. 56 ADDRESSES - --------------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds 38 Fountain Square Plaza Cincinnati, Ohio 45202 - --------------------------------------------------------------------------------------- Investment Advisor, Administrator and Accountant Fifth Third Asset Management, Inc. 38 Fountain Square Plaza Cincinnati, Ohio 45202 - --------------------------------------------------------------------------------------- Distributor ALPS Distributors, Inc. d/b/a FTAM Funds Distributor, Inc. 1290 Broadway, Suite 1100 Denver, Colorado 80203 - --------------------------------------------------------------------------------------- Custodian, Sub-Accountant and Sub-Administrator State Street Bank and Trust Company 801 Pennsylvania Avenue Kansas City, Missouri 64105 - --------------------------------------------------------------------------------------- Transfer and Dividend Disbursing Agent Boston Financial Data Services, Inc. 30 Dan Road Canton, Massachusetts 02021 - --------------------------------------------------------------------------------------- Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP 100 East Broad Street Suite 2100 Columbus, Ohio 43215 - --------------------------------------------------------------------------------------- Fifth Third Funds FTF769 073108 AR-MMF-07 9/07 ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the "Code of Ethics"). On September 12, 2007, the Code of Ethics was amended to make non-material changes. The Code of Ethics is attached hereto as Exhibit 12(a)(1) There have been no waivers granted by the registrant to individuals covered by the Code of Ethics during the reporting period for Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Board of Trustees of the registrant has determined that it has one audit committee financial expert serving on the registrant's Audit Committee that possess the attributes identified in Item 3(b) to Form N-CSR. The name of the audit committee financial expert is David J. Gruber and is "independent" as that term is defined in Item 3(a)(2) of Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Audit Fees The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services normally provided in connection with statutory and regulatory filings and engagements for the last two fiscal years ended July 31, 2006 and July 31, 2007 were $320,760 and $319,400, respectively. (b) Audit Related Fees The registrant was billed $22,000 by the principal accountant for the fiscal year ended July 31, 2006 for professional services rendered by the principal accountant or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for that fiscal year that were reasonably related to the performance of the audit of the registrant's financial statements and not otherwise included above. The registrant was not billed any fees by the principal accountant for the fiscal year ended July 31, 2007 for assurance and related services that were reasonably related to the performance of the audit of the registrant's financial statements and not otherwise included under paragraph (a) of this Item 4. (c) Tax Fees The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning in the form of preparation of excise filings and income tax returns for the last two fiscal years ended July 31, 2006 and July 31, 2007 were $102,718 and $104,850, respectively. (d) All Other Fees The aggregate fees billed for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item for the last two fiscal years ended July 31, 2006 and July 31, 2007 were $0 and $0, respectively. (e) Pre-Approval Policies and Procedures (1) Audit and Non-Audit Services Pre-Approval Policies and Procedures I. Purpose Under the Sarbanes-Oxley act of 2002 (the "Act"), the audit committee (the "Committee") of the Board of Trustees of Fifth Third Funds (the "Trust") is responsible for the appointment, compensation and oversight of the work of the Trust's independent auditor. As part of this responsibility, the Committee is required to grant approval for audit and non-audit services performed by the independent auditor for the Trust in order assure that they do not impair the auditor's independence from the Trust. To implement these provisions of the Act, the Securities and Exchange Commission (the "SEC") has issued rules specifying the types of services that the Trust's independent auditor may not provide to the Trust, as well as the committee's administration of the engagement of the independent auditor. Under these rules, the SEC has provided that a permissible approval of audit and non-audit services can take the form of either (i) an express approval of a particular engagement, or (ii) a pre-approval (where a specific type of service is authorized, generally subject to a fee maximum). The latter type of approvals are authorized by SEC rules only subject to detailed policies and procedures. Accordingly, the Committee has adopted these audit and non-audit services pre-approval policies and procedures, which set forth the procedures and the conditions pursuant to which services for the Trust may be performed by the independent auditor under pre-approvals. II. General Pre-Approval Policies It is the policy of the committee that audit and non-audit services to be performed by the Trust's independent auditor be pre-approved only when in the best interests of the Trust's shareholders and fully consistent with applicable law and, particularly, the maintenance of the auditor's independence. In granting any pre-approval, consideration shall be given to: 1. The qualifications of the auditor to perform the services involved; 2. The proposed costs (which may be presented as an estimate or based on professional time charges subject to a ceiling) of the services and the reasonableness thereof; 3. The permissibility of the services under applicable rules and guidance of the SEC; 4. The effect, if any, of the performance of the proposed services on the auditor's independence; 5. The effect of the compensation for the proposed services on the auditor's independence; and 6. The effect, if any, of the proposed services on the Trust's ability to manage or control risk or to improve audit quality. While non-audit services may include reviewing and/or validating procedures or work products of the Trust, they may not include the production or modification of such procedures or work products. While non-audit services may include market research and strategic insights, such services shall be limited to factual reports and shall not include recommendations. No pre-approval shall be made in a manner that would constitute a delegation to the Trust's management. III. Procedures for Pre-Approval by the Committee 1. Requests for pre-approval shall be in writing and may be made by either the independent auditors or by management of the Trust. 2. All requests for pre-approval shall be made to the full Committee at regularly scheduled meetings thereof (or at a special meeting of the Committee set to coincide with regular meetings of the Trust's Board of Trustees) whenever practicable. 3. Under normal circumstances, requests for pre-approval should be presented at least 14 days prior (and in no event later than 48 hours prior) to the proposed commencement of the engagement. 4. If consideration of a request for pre-approval on the dates identified in Section III (2) would not be timely, the requesting party shall notify the Committee's chairman. The Committee's chairman shall then determine whether to schedule a special meeting of the Committee (which may be conducted telephonically) on an alternative date or whether the request may appropriately be presented to a delegate of the Committee under procedures set forth in Section IV below. 5. Requests for pre-approval may include, but are not limited to, the following services: A. Audit engagement, particularly for interim periods; B. Preparation of fund tax returns; C. Review and consents with respect to use of reports in post-effective amendments to the registration statements of the Trust; D. Review of its shareholder materials; E. Review and validation of fund procedures (e.g., valuation, interfund lending, etc.), and F. Market research and strategic insights. 6. Requests for pre-approval should identify the nature of the services to be provided in a manner sufficiently specific to allow evaluation of the considerations identified above in Section II. 7. Requests for pre-approval must include an assessment by the independent auditor of their independence should the request be granted and the proposed services rendered. 8. The Committee's action on a request for pre-approval shall be recorded in the Committee's minutes. 9. The Committee's action on a request for pre-approval shall be communicated in writing to the independent auditor and, under normal circumstances, a copy of this communication shall be provided to the Trust's management. 10. The Committee's action on a request for pre-approval shall be reported to the full board of Trustees. 11. Pre-approvals will be granted for a period of no more than one year. IV. Procedures for Pre-Approval by a Delegate of the Committee 1. Where it has been determined by the Committee's chairman that consideration of a request for pre-approval by the full Committee would not be timely, the chairman may determine that the request be presented to a member(s) of the Committee appointed by the Committee as its delegate (the "delegate") for this purpose. (as of the date of the adoption of these guidelines and procedures, John E. Jaymont has been so appointed, and such appointment may be revoked or modified by the Committee at any time.) 2. Requests for pre-approval shall be in writing and may be made by either the independent auditors or by management of the Trust. 3. Under normal circumstances, requests for pre-approval should be presented at least 14 days prior (and in no event later than 48 hours prior) to the proposed commencement of the engagement. 4. Requests for pre-approval may include, but are not limited to, the following services: a. Audit engagement, particularly for interim periods; b. Preparation of fund tax returns; c. Review and consents with respect to use of reports in post-effective amendments to the registration statements of the Trust; d. Review of its shareholder materials; e. Review and validation of fund procedures (e.g., valuation, interfund lending, etc.); and f. Market research and strategic insights. 5. Requests for pre-approval should identify the nature of the services to be provided in a manner sufficiently specific to allow evaluation of the considerations identified above in Section II. 6. Requests for pre-approval must include an assessment by the independent auditor of their independence should the request be granted and the proposed services rendered. 7. The delegate's action on a request for pre-approval shall be communicated in writing to the independent auditor, with a copy to each other member of the Committee and, under normal circumstances, to the Trust's management. 8. Pre-approvals by the delegate shall be reviewed by the Committee at a meeting held no later than the next scheduled meeting of the Board of Trustees or the Committee, whichever occurs sooner. An earlier review shall be conducted upon the written request of one or more Committee members addressed to the Committee's Chairman. 9. Pre-approvals by the delegate may be modified or revoked by the Committee, but will not absolve the Trust of its responsibility to compensate the independent auditor for services rendered prior to such modification or revocation. 10. The results of the Committee's review of the delegate's action on a request for pre-approval shall be recorded in the Committee's minutes and reported to the full board of Trustees. 11. Pre-approvals will be granted by the delegate for a period of no more than one year. V. Procedures for Monitoring Engagements Authorized under Pre-Approval Procedures The independent auditor shall inform the Committee in writing upon the Commencement of services rendered under a pre-approval. The independent auditor shall thereafter provide the Committee with written quarterly progress reports within one month of the close of each calendar quarter detailing the work done and fees and other charges incurred during said calendar quarter. Should fees and expenses exceed those specified in a pre-approval (or appear likely to do so prior to completion of the work), the independent auditor or management shall so apprise the Committee and an additional express approval or pre-approval must be obtained. VI. Amendment These policies and procedures may be amended or revoked at any time by the Committee and shall be reviewed at least annually in conjunction with review of the Audit Committee charter. (2) Pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X, pre-approval is required for non-audit services billed by the independent auditor to the registrant's investment adviser, or any other entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant if the services relate directly to the operations and financial reporting of the registrant. As disclosed above in Items 4(b) through (d), there were no fees for such services during the applicable periods. (f) No disclosures are required by this Item 4(f). (g) The aggregate non-audit fees billed for the fiscal year ended July 31, 2006 and July 31, 2007 for services rendered by the principal accountant to the registrant were $102,718 and $104,850, respectively. The approximate aggregate non-audit fees billed for the fiscal year ended July 31, 2006 and July 31, 2007 for services rendered by the principal accountant to the investment adviser were $0 and $81,100, respectively. (h) The Audit Committee has considered that the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. A Schedule of Investments is included as a part of the reports to shareholders filed under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees since the registrant last disclosed its procedures pursuant to Item 7(d)(2)(ii)(G) of Schedule 14A or this Item. ITEM 11.CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) The Code of Ethics is attached hereto. (a)(2) The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, amended are attached hereto. (a)(3) Not applicable. (b) The certifications required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FIFTH THIRD FUNDS /s/ E. Keith Wirtz - ------------------ E. Keith Wirtz President Date: October 9, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ E. Keith Wirtz - ------------------ E. Keith Wirtz President (Principal Executive Officer) Date: October 9, 2007 /s/ Christopher Bell - -------------------- Christopher Bell Treasurer (Principal Financial and Accounting Officer) Date: October 9, 2007