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)
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38 Fountain Square Plaza
Cincinnati, Ohio 45263
(Address of Principal Executive Office) (Zip Code)
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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
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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
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1 TERMS AND DEFINITIONS
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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
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3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
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SMALL CAP GROWTH FUND
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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.
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INVESTMENT RISK CONSIDERATIONS
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SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
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AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2007
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ENDING
1 YEAR 5 YEAR 10 YEAR VALUE 2
------- ------ ------- -------
Institutional 20.45% 13.23% 5.73% $17,464
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Class A Shares 14.09% 11.80% 4.92% $16,172
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Class B Shares 14.69% 11.87% 4.67% $15,780
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Class C Shares 19.18% 12.10% 4.67% $15,781
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Advisor Shares 15.95% 11.92% 4.85% $16,053
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Russell 2000(R) Growth Index 1 16.84% 15.68% 4.20% $15,089
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Lipper Small-Cap Growth Funds Average 1 18.69% 14.51% 7.62% $22,810
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PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, 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.
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TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007
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AS A PERCENTAGE OF VALUE OF INVESTMENTS +
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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
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SMALL CAP GROWTH FUND
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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
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MID CAP GROWTH FUND
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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.
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INVESTMENT RISK CONSIDERATIONS
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MID CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE MID-SIZE
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, MID-SIZE
COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN
LARGE COMPANY STOCKS ON AVERAGE.
EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER
FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME
SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE
VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES.
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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
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Class A Shares 11.09% 12.48% 5.24% $16,669
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Class B Shares 11.52% 12.55% 4.93% $16,187
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Class C Shares 16.07% 12.77% 5.04% $16,354
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Advisor Shares 12.84% 12.61% 5.18% $16,571
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Russell Midcap(R) Growth Index 1 21.40% 17.30% 7.58% $20,468
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Lipper Mid-Cap Growth Funds Average 1 21.94% 14.38% 7.25% $22,518
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PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, 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.
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TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2007
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AS A PERCENTAGE OF VALUE OF INVESTMENTS +
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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
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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
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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
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- --------------------------------------------------------------------------------
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.
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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
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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
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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
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- --------------------------------------------------------------------------------
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
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- --------------------------------------------------------------------------------
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.
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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.
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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