UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER: 811-5669
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FIFTH THIRD FUNDS
(Exact Name of Registrant as Specified in Charter)
-----------------------------------------
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 with a copy to:
President Alan G. Priest
Fifth Third Funds Ropes & Gray LLP
38 Fountain Square Plaza One Metro Center
Cincinnati, Ohio 45263 700 12th Street NW
Suite 900
Washington, DC 20005-3948
Date of fiscal year end: July 31
Date of reporting period: January 31, 2008
ITEM 1. REPORT TO STOCKHOLDERS.
o STOCK AND BOND MUTUAL FUNDS
Semi-Annual Report to Shareholders
-------------------
January 31, 2008
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, on the
Funds' website at www.fifththirdfunds.com or by calling 1-800-282-5706 and on
the Securities and Exchange Commission's website at http://www.sec.gov.
Schedules of 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. They may be viewed at the SEC's Public Reference Room in
Washington, D.C. (information on the operation of the Public Reference Room may
be obtained by calling 800.SEC.0330).
Fifth Third Funds are distributed by FTAM Funds Distributor, Inc., member FINRA.
FTAM Funds Distributor, Inc. is not an affiliate of Fifth Third Bank, Fifth
Third Funds or Fifth Third Asset Management, Inc. 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 ........................................................... 5
Quality Growth ........................................................... 6
Dividend Growth .......................................................... 7
Micro Cap Value .......................................................... 8
Small Cap Value .......................................................... 9
All Cap Value (formerly Multi Cap Value) ................................. 10
Disciplined Large Cap Value .............................................. 11
Structured Large Cap Plus ................................................ 12
Equity Index ............................................................. 13
Balanced ................................................................. 14
International Equity ..................................................... 15
Strategic Income ......................................................... 16
Fifth Third LifeModel Aggressive(SM) ..................................... 17
Fifth Third LifeModel Moderately Aggressive(SM) .......................... 18
Fifth Third LifeModel Moderate(SM) ....................................... 19
Fifth Third LifeModel Moderately Conservative(SM) ........................ 20
Fifth Third LifeModel Conservative(SM) ................................... 21
High Yield Bond .......................................................... 22
Total Return Bond (formerly Bond) ........................................ 23
Short Term Bond .......................................................... 24
Municipal Bond ........................................................... 25
Intermediate Municipal Bond .............................................. 26
Ohio Municipal Bond ...................................................... 27
Michigan Municipal Bond .................................................. 28
Glossary of Terms ........................................................ 29
Schedules of Investments ................................................. 33
Notes to Schedules of Investments ........................................ 98
Statements of Assets and Liabilities ..................................... 100
Statements of Operations ................................................. 105
Statements of Changes in Net Assets ...................................... 110
Statement of Cash Flows .................................................. 134
Financial Highlights ..................................................... 136
Notes to Financial Highlights ............................................ 164
Notes to Financial Statements ............................................ 165
Supplemental Information ................................................. 180
Our Message to You
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Volatile markets represented the norm during the second half of 2007 and first
month of 2008, seeming to unsettle Fifth Third Funds shareholders and other
investors alike.
Among some of the broader market indexes, declines for the six-month period
ending January 31, 2008, included:
o A 4.32% retreat for the S&P 500 Index of large cap stocks.
o A 5.44% retreat for the S&P 400 Index of mid cap stocks.
o A 8.00% retreat for the S&P 600 Index of small cap stocks.
o A 7.52% retreat for the MSCI EAFE Index of international stocks.
Results reflected an attraction to larger, more stable companies as turmoil in
the world's financial markets and an economic slowdown in the U.S. fueled
distaste for riskier assets. For example, although growth stocks continued to
outperform value holdings, the difference narrowed considerably during January.
Among international investments, emerging market stocks generally outperformed
those from established economies as surging commodity prices benefited raw
materials producers - many of which are found in developing countries.
In light of challenging periods such as this, we would remind investors that
markets do not follow a one-way path. Losses can - and do - happen, but by
keeping focused on the long haul with well-diversified portfolios, individuals
are better positioned to capitalize on positive moves in the future.
A number of factors influenced the financial markets during the period, most
significantly:
1. The "credit crisis" that grew out of complications in the subprime
mortgage industry. As tens of billions of dollars of mortgage securities
were essentially deemed worthless, capital markets dried up and central
banks around the world scrambled to inject liquidity into the system.
Meanwhile, the U.S. housing market collapsed amid falling values and
stricter lending requirements.
2. A renewal of the concept of risk. Following four years of Wall Street
embracing risk and failing to price risk appropriately, the seizure of the
bond markets sent many investors fleeing to safe havens. While large
investment banks were forced to write off debt securities and derivatives
such as collateralized debt obligations and structured investment
vehicles, virtually any bond not issued by the U.S. government was prone
to a pronounced fall. Such developments left many high quality, modest
risk investments at attractive prices.
3. An economic slowdown in the U.S. that originated in the housing industry
and spread to consumers. As consumer confidence drooped, oil prices rose
and the unemployment rate jumped higher, the holiday shopping season
proved disappointing. Conditions deteriorated to the point that the
Federal Reserve, which had already cut its key lending rate 100 basis
points during the first five months of the period, slashed an additional
125 basis points in an eight-day period in late January. In addition,
leaders in Washington collaborated on a $168 billion economic relief
package.
4. Corporate profit growth - outside of the beleaguered financials sector -
remained solid, which translated into attractive valuations for equities.
Accounting for a portion of the earnings growth was the weakening of the
U.S. dollar, which made U.S. products more competitive overseas and
boosted the profits of multinational companies.
5. Inflation remained manageable, despite rising oil prices and booming
commodity markets driven by strong worldwide demand for raw materials,
energy and foodstuffs.
6. Economic growth rates around the world remained solid. Led by expansions
in developing markets such as China and India, many countries enjoyed
above-average growth rates during 2007. In turn, global equities posted
market-leading gains in 2007, although concerns over inflationary
pressures and economic slowdowns contributed to a rocky January.
1
For the bond market, U.S. Treasury issues provided modest gains during the
six-month period. Amid the flight to quality, non-government issues suffered
significantly - especially mortgage-related debentures - although higher rated
bonds tended to endure the slump better than riskier issues. Cash investments
saw yields fall as the Federal Reserve trimmed its key lending rate from 5.25%
to 3.00%. As long-term interest rates fell less severely, the U.S. Treasury
yield curve returned to its natural slope, with short-term issues yielding less
than long-term bonds.
Admittedly, the markets have proven precarious during the past six months, yet
underlying conditions remain encouraging. Attractive valuations, low interest
rates, modest inflation, a healthy global economy and an accommodative Federal
Reserve all foster cautiously positive sentiments, not gloom and doom.
The modest dose of optimism, of course, is backed by the high quality philosophy
sustained across the family of Fifth Third Funds. Knowing that the stocks and
bonds held by our Funds rest on solid fundamentals, I believe we are ideally
positioned for the market's recovery, whenever that occurs.
Looking ahead, our expectations on the macro-economic front include:
o Further cuts in the Federal Reserve's interest rates in the near term.
o U.S. economic growth of 1% to 2% during the first half of 2008, and near
3% during the second half.
o Continued weakness in the U.S. housing market.
o Global economic growth around 4% for 2008.
o Respectable profit growth among U.S. corporations with annual earnings per
share figures rising about 8%.
o A rebound in the value of the U.S. dollar, although it may initially slip
lower in early 2008.
o A restoration of traditional risk-reward profiles in the fixed income
market.
The market was filled with turmoil over the past six months as even high quality
assets declined in value. But looking ahead, I'm confident that we have built
dynamic portfolios to help take advantage of market opportunities in an effort
to seek rewards on your behalf.
Thank you for your confidence in Fifth Third Funds.
/s/ Keith Wirtz
Keith Wirtz, CFA
Chief Investment Officer
(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
Small Cap Growth Fund
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For the six-month period ended January 31, 2008, the Fifth Third Small Cap
Growth Fund (Institutional) retreated 9.28% on a net of fee basis,
underperforming its benchmark, the Russell 2000(R) Growth Index, which declined
7.04%.The period opened on a down note, but positive economic datapoints and a
September rate cut from the Federal Reserve - along with expectations for
further cuts - sparked a rally through October 2007. The optimism quickly
evaporated, however, as economic readings deteriorated, recessionary fears
emerged and consumer sentiment soured drastically. The resulting stock slump
continued through the first month of 2008, and the Fund was caught in the
downdraft.
More specifically, investments in the challenging financials sector and
economically sensitive sectors such as industrials, materials and information
technology dragged considerably on results during the period. Within the
industrials space, building products stocks diminished returns due to ties to
the struggling housing market. Commercial services firms weighed on results as
well.
Just as information technology participated the market's surge in the fall, it
joined in the winter drop as concerns over a weakening economy emerged. Within
the Fund, stocks in the Internet software and services and communications
equipment groups proved detrimental to the portfolio. Elsewhere, underweight
stakes, relative to the benchmark, in the biotechnology industry and the
chemicals group, especially in the surging agricultural area, detracted from
relative returns.
Despite the biotech positioning, stock selections in the health care equipment
and services groups fueled a positive contribution from the health care sector.
Oilfield services outfits aided the Fund's energy exposure and transportation
infrastructure investments further added to relative gains.
By the period's end, the Fund had significantly shifted out of the industrials
and information technology sectors in favor of health care and energy.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Small capitalization funds typically carry additional risk since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
large company stocks on average.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
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6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional -9.28% -2.52% 12.52% 4.40%
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Class A Shares -13.85% -7.56% 11.12% 3.60%
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Class B Shares -12.61% -6.57% 11.25% 3.34%
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Class C Shares -10.30% -3.57% 11.40% 3.34%
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Russell 2000(R)
Growth Index(1) -7.04% -4.18% 15.15% 3.46%
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Lipper Small-Cap
Growth Funds
Average(1) -8.28% -4.24% 13.65% 6.45%
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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 1/31/08, the gross expense
ratios are 1.10% (Institutional Shares), 1.35% (Class A) 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 reflect the maximum sales charge of
5.0%. 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 and
Class C Shares is October 29, 2001.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
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as a percentage of value of investments+
Hologic, Inc. ......................................................... 2.41%
Huron Consulting Group, Inc. .......................................... 2.37%
AZZ, Inc. ............................................................. 2.25%
Iconix Brand Group, Inc. .............................................. 2.15%
BioMarin Pharmaceuticals, Inc. ........................................ 2.15%
RRSat Global Communications Network, Ltd. ............................. 2.08%
Superior Energy Services .............................................. 2.07%
Icon PLC ADR .......................................................... 1.97%
Core Laboratories NV. ................................................. 1.93%
Providence Service Corp. (The) ........................................ 1.92%
+ Portfolio composition is subject to change.
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Mid Cap Growth Fund
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For the six-month period ended January 31, 2008, the Fifth Third Mid Cap Growth
Fund (Institutional) declined 6.51% on a net of fee basis, trailing its
benchmark, the Russell MidCap(R) Growth Index, which declined 6.45%.
The period opened on a down note, but positive economic datapoints and a
September rate cut from the Federal Reserve - along with predictions of further
cuts - sparked a rally through October 2007. The optimism evaporated, however,
as economic readings deteriorated, recessionary fears emerged and consumer
sentiment soured drastically. Aside from a couple of bounces in December, mid
cap growth stocks slumped through the first month of 2008, and the Fund was
caught in the downdraft as a result of its holdings in such securities.
Contending with conditions surrounding the subprime mortgage market meltdown,
the financial industry performed poorly during the period. Within the Fund,
investments in the financials sector, including significant exposure to
brokerage companies and asset managers, diminished relative returns.
Other detractors included holdings in the telecommunication services sector,
which were hurt by wireless service provider stocks, and an overweight position
relative to the benchmark in luxury goods companies, which struggled as economic
expectations dimmed.
Positive contributions were furnished by health care sector investments, led by
effective stock selections in the health care equipment group, and information
technology holdings. Notably, an overweight position and individual stock
selection in the software space enhanced relative performance, as did an
underweight stake in semiconductors.
The Fund scaled back modestly on its information technology exposure through the
closing months. Exposure in telecommunication services and financials was also
trimmed. Proceeds were redirected into the industrials, materials and health
care sectors.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Mid capitalization funds typically carry additional risk since mid-size
companies generally have a higher risk of failure. Historically, mid-size
companies' stocks have experienced a greater degree of market volatility than
large company stocks on average.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ -------
Institutional -6.51% -2.93% 13.50% 4.61%
- --------------------------------------------------------------------------------
Class A Shares -11.21% -7.99% 12.07% 3.81%
- --------------------------------------------------------------------------------
Class B Shares -10.65% -7.75% 12.20% 3.54%
- --------------------------------------------------------------------------------
Class C Shares -8.22% -4.43% 12.25% 3.54%
- --------------------------------------------------------------------------------
Russell Midcap(R)
Growth Index(1) -6.45% -0.23% 16.43% 6.89%
- --------------------------------------------------------------------------------
Lipper Mid-Cap
Growth Funds
Average(1) -4.73% 2.29% 14.53% 6.82%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.11% (Institutional Shares), 1.36% (Class A) and 2.12% (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
5.0%. 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 and Class C Shares of the Mid Cap Growth Fund are
August 11, 1998, October 11, 2000 and April 24, 1996, 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 and Class
C Shares.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Fifth Third Institutional Money Market Fund ........................... 2.72%
Stericycle, Inc. ...................................................... 2.24%
Joy Global, Inc. ...................................................... 2.24%
Hologic, Inc. ......................................................... 2.18%
Precision Castparts Corp. ............................................. 2.04%
Abercrombie & Fitch Co., Class A ...................................... 2.01%
Intuit, Inc. .......................................................... 1.92%
Corrections Corp. of America .......................................... 1.87%
National Oilwell Varco, Inc. .......................................... 1.84%
XTO Energy, Inc. ...................................................... 1.83%
+ Portfolio composition is subject to change.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Quality Growth Fund
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For the six-month period ended January 31, 2008, the Fifth Third Quality Growth
Fund (Institutional) gained 2.28% on a net of fee basis, outperforming its
benchmarks, the Russell 1000(R) Growth Index, which declined 4.38%; and the S&P
500 Index, which declined 4.32%.
The subprime mortgage crisis dominated the headlines during the period,
contributing to market volatility and unsettling the confidence of investors.
Stocks reacted to the resulting disruption in the credit markets by moving
sharply lower starting in October - a trend that continued through the first
month of 2008. In response to the prospects for deteriorating economic growth,
the Federal Reserve aggressively cut its key lending rate to help calm global
financial market turbulence.
Broad-based strength during the period bolstered the Fund, which outperformed
the benchmark in eight of 10 industry sectors. A leading contributor was the
consumer discretionary sector, where holdings among fast food restaurants and
for-profit education companies helped key performance. Just as importantly, the
Fund avoided many of the areas where stock declines were the most prevalent,
including the apparel manufacturing and retailing industry and the department
stores group.
Another portfolio highlight came from agriculture-related names within the
materials sector. With commodity prices rising, the prospects for seed and
fertilizer companies steadily improved, which boosted their stock prices.
Detractors from performance included ineffective stock selection within the
consumer staples sector and an underweight stake, relative to the benchmark, in
the utilities sector, which generated solid returns during this volatile period.
In the closing weeks of the period, weaker than expected economic data caused
many to forecast that the U.S. economy is either in recession or on the verge of
it. Regardless of macro-economic conditions, the Fund will seek to identify
companies with a strong record of earnings growth in all kinds of market
conditions.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional 2.28% 9.38% 10.53% 3.54%
- --------------------------------------------------------------------------------
Class A Shares -2.93% 3.73% 9.13% 2.77%
- --------------------------------------------------------------------------------
Class B Shares -2.61% 3.70% 9.14% 2.46%
- --------------------------------------------------------------------------------
Class C Shares 0.90% 8.32% 9.43% 2.59%
- --------------------------------------------------------------------------------
Russell 1000(R) Growth Index(1) -4.38% 1.32% 11.09% 2.69%
- --------------------------------------------------------------------------------
S&P 500 Index(1) -4.32% -2.31% 12.04% 5.14%
- --------------------------------------------------------------------------------
Lipper Large-Cap Core Funds Average(1) -4.71% -2.69% 10.79% 4.31%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 1.10% (Institutional Shares), 1.35% (Class A) 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 reflect the maximum sales charge of
5.0%. 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 and Class C Shares of the Quality Growth Fund are
August 11, 1998, October 11, 2000 and April 25,1996, 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 and Class C Shares.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Microsoft Corp. ........................................................ 3.52%
Monsanto Co. ........................................................... 2.76%
Baxter International, Inc. ............................................. 2.49%
Northern Trust Corp..................................................... 2.16%
Intel Corp. ............................................................ 2.15%
McDonald's Corp. ....................................................... 2.10%
International Business Machines Corp. .................................. 2.02%
Gilead Sciences, Inc. .................................................. 2.02%
Apple, Inc. ............................................................ 2.00%
PepsiCo, Inc. .......................................................... 1.95%
+ Portfolio composition is subject to change.
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Dividend Growth Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Dividend Growth
Fund (Institutional) dipped 0.03% on a net of fee basis, topping its benchmarks,
the S&P 500 Index, which declined 4.32%; the Russell 1000(R) Index, which
declined 5.43%; and the Russell 1000(R) Growth, which declined 4.38%.
Subprime mortgage complications gave way to consumer spending concerns as
headwinds steadily buffeted the stock market throughout the period. Accordingly,
the financials and consumer discretionary sectors struggled and led the broader
market lower.
Within the Fund, stock selection in the two dreary sectors accounted for a
significant portion of outperformance during the period. In the financials
sector, the Fund benefited from a lack of exposure to thrifts and consumer
finance companies, which contended with subprime mortgage aftershocks. In
addition, positions in a diversified mix of holdings from the processing,
brokerage and exchange industries proved advantageous, as did investments in
select commercial banks that sidestepped much of the turmoil associated with the
credit markets.
In the consumer discretionary space, the Fund avoided homebuilders, automakers
and home improvement retailers, which all slumped. Further enhancing relative
returns was a focus on restaurants, apparel makers and auto parts manufacturers
with significant international exposure, as a weaker U.S. dollar boosted profits
from overseas sales.
Elsewhere, multifaceted medical supply and drug companies lifted the Fund's
health care investments and oilfield service and drilling companies keyed
positive results from the energy sector.
Investments in the information technology sector diminished performance,
especially as economic worries sparked a selloff through the latter part of the
period. The resulting valuations, considering the strong earnings potential and
international exposure in select names, prompted the Fund to increase its stake
in the sector.
Similarly, the Fund added to health care holdings and expanded its exposure in
the financials sector, where it perceived that the slump created some solid
opportunities. In turn, the Fund scaled back on its industrials, utilities and
energy positions and exited the telecommunication services sector.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Because the Fund may invest in a single industry, its shares do not represent a
complete investment program. As a non-diversified Fund, the value of the shares
may fluctuate more than shares invested in a broader range of industries and
companies.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional -0.03% 3.86% 10.03% 0.00%
- --------------------------------------------------------------------------------
Class A Shares -5.16% -1.52% 8.69% -0.73%
- --------------------------------------------------------------------------------
Class B Shares -5.49% -2.12% 8.69% -0.93%
- --------------------------------------------------------------------------------
Class C Shares -1.53% 2.85% 8.98% -0.92%
- --------------------------------------------------------------------------------
S&P 500 Index(1) -4.32% -2.31% 12.04% 5.14%
- --------------------------------------------------------------------------------
Russell 1000(R) Index(1) -5.43% -1.77% 12.89% 5.46%
- --------------------------------------------------------------------------------
Russell 1000(R) Growth Index(1) -4.38% 1.32% 11.09% 2.69%
- --------------------------------------------------------------------------------
Lipper Large-Cap Core Funds Average(1) -4.71% -2.69% 10.79% 4.31%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 1.71% (Institutional Shares), 1.96% (Class A), 2.71% (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
5.0%. 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 and Class C of the Fund are August 11, 1998, October
11, 2000 and March 9, 1998, 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 and Class C.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Exxon Mobil Corp. ...................................................... 4.25%
United Technologies Corp. .............................................. 3.16%
Procter & Gamble Co. ................................................... 3.02%
Altria Group, Inc. ..................................................... 3.00%
Emerson Electric Co. ................................................... 2.83%
Bank of America Corp. .................................................. 2.56%
General Electric Co. ................................................... 2.51%
PepsiCo, Inc. .......................................................... 2.51%
Wells Fargo & Co. ...................................................... 2.30%
US Bancorp ............................................................. 2.14%
+ Portfolio composition is subject to change.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Micro Cap Value Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Micro Cap Value
Fund (Institutional) retreated 13.85% on a net of fee basis, trailing its
benchmarks, the Russell Microcap(R) Value Index, which declined 13.21%; the
Russell Microcap(R) Index, which dropped 12.84%; and the Russell 2000(R) Value
Index, which declined 9.96%.
The economic slowdown, due largely to excesses in residential real estate
lending in recent years, prompted a flight to higher-quality securities and a
decline in the more volatile micro cap segment during the period. Despite the
Advisor's efforts to filter out less attractive companies in selecting
investments, challenges in sector allocation and stock selection kept the Fund's
returns marginally below the benchmark.
The materials sector provided the largest positive contribution to the Fund's
performance, primarily due to stock selection in the chemicals group. Exposure
in the industrials sector also proved effective, most notably in the aerospace
and defense and road and rail industries.
Information technology provided mixed returns. Computer hardware and software
picks performed well, but holding an overweight position in this underperforming
sector diminished gains.
The traditional safe haven of consumer staples also presented challenges, and,
although the decision to overweight the highly defensive food products industry
proved beneficial, the performance of individual stock selections within the
sector missed the mark.
An underweight stake in the financials sector, maintained because the Advisor
forecasted that the subprime mortgage woes would continue to fester, negatively
affected performance, as it was actually the third best performer in the
benchmark.
During the period, the Fund exited some sparsely traded, smaller names in favor
of larger companies with broader exposure, which the Advisor believes will be
better-suited to weather the current economic storm. The moves increased the
average market capitalization of the Fund and enhanced the portfolio's
liquidity, which the Advisor believes will serve the Fund well in an uncertain
market environment.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Micro capitalization funds typically carry additional risk since micro-cap
companies generally have a higher risk of failure. Historically, micro-cap
stocks have experienced a greater degree of market volatility than large company
stocks on average.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year 5 Year Inception
--------- --------- -------- ------ ---------
Institutional 2/1/98 -13.85% -13.85% 15.05% 11.36%
- --------------------------------------------------------------------------------
Class A Shares 2/1/98 -18.22% -18.33% 13.58% 10.61%
- --------------------------------------------------------------------------------
Class B Shares 2/1/98 -16.77% -17.16% 14.02% 10.46%
- --------------------------------------------------------------------------------
Class C Shares 2/1/98 -14.81% -14.86% 14.12% 10.65%
- --------------------------------------------------------------------------------
Russell
Microcap(R) Index(1) -12.84% -15.93% 14.50% 6.85%
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index(1) -9.96% -14.56% 15.81% 8.80%
- --------------------------------------------------------------------------------
Russell Microcap(R)
Value Index(1) -13.21% -17.67% 16.02% 13.32%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.76% (Institutional Shares), 2.05% (Class A) and 2.76% (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
5.0%. 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 and Class C are August 11, 1998, October 11, 2000 and
April 25, 1996, 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 and Class.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Fifth Third Institutional Money Market Fund ............................ 2.08%
Callon Petroleum Co. ................................................... 1.45%
Dot Hill Systems Corp. ................................................. 1.43%
Secure Computing Corp. ................................................. 1.40%
Semitool, Inc. ......................................................... 1.40%
Stealthgas, Inc. ....................................................... 1.39%
Hersha Hospitality Trust ............................................... 1.37%
Ducommun, Inc. ......................................................... 1.27%
Agilysys, Inc. ......................................................... 1.27%
First Merchants Corp. .................................................. 1.26%
+ Portfolio composition is subject to change.
8
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Small Cap Value Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Small Cap Value
Fund (Institutional) declined 5.94% on a net of fee basis, outperforming its
benchmark, the Russell 2000(R) Value Index, which retreated 9.96%.
Repercussions from the subprime mortgage market collapse spread into other
corners of the U.S. economy during the period, igniting fears of a broad
slowdown. Lackluster sales growth during the holiday shopping season underscored
consumer concerns, which weighed on corporate forecasts. Within the benchmark
index, this translated into poor performance within the consumer discretionary,
industrials and information technology sectors, while the financials sector
outperformed the benchmark.
Market volatility - during August, in particular - resulted in extremes at both
the high and low end. A handful of stocks soared past the Fund's target prices,
while others previously considered too expensive declined to attractive levels.
Thus, trading activity surged in August, before returning to fairly typical
levels for the balance of the period.
The Fund's strict emphasis on valuation proved valuable in sectors such as
industrials and consumer staples, where stock selection keyed relative
outperformance. Buyouts in holdings from the aerospace and defense and food
distribution industries aided returns and allowed the Fund to pare back its
exposure in both groups. Some of the proceeds were redeployed into retail names
within the consumer discretionary sector.
Another positive contributor was energy, where coal stocks rallied amid
heightened demand for the fuel from China and India. Within the financials
sector, effective investments in community banks negated the negative impact of
the Fund's underweight position. Altogether, the Fund outperformed the benchmark
in eight of 10 sectors.
Weakness in the domestic chemical industry and a lack of exposure to
agricultural stocks led to a negative relative return from the Funds' materials
sector exposure. Astake in the telecommunication services sector also detracted
from performance.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Small capitalization funds typically carry additional risk since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
large company stocks on average.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year Inception
--------- --------- ------- ----------
Institutional 4/1/03 -5.94% -6.45% 13.62%
- --------------------------------------------------------------------------------
Class A Shares 4/1/03 -10.77% -11.35% 12.13%
- --------------------------------------------------------------------------------
Class B Shares 4/1/03 -10.49% -11.49% 12.24%
- --------------------------------------------------------------------------------
Class C Shares 4/1/03 -7.23% -7.42% 12.47%
- --------------------------------------------------------------------------------
Russell 2000(R) Value Index(1) -9.96% -14.56% 16.40%
- --------------------------------------------------------------------------------
Lipper Small-Cap Core Funds
Average(1) -9.71% -9.50% 15.64%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.28% (Institutional Shares), 1.54% (Class A) and 2.29% (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
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Platinum Underwriters Holdings, Ltd. ................................... 2.50%
Schweitzer-Mauduit International, Inc. ................................. 2.48%
United Bankshares, Inc. ................................................ 2.46%
Vectren Corp. .......................................................... 2.38%
Coeur d'Alene Mines Corp. .............................................. 2.36%
Iowa Telecommunications Services, Inc. ................................. 2.31%
Kindred Healthcare, Inc. ............................................... 2.20%
Casey's General Stores, Inc. ........................................... 2.17%
Community Bank System, Inc. ............................................ 2.17%
UMB Financial Corp. .................................................... 2.16%
+Portfolio composition is subject to change.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
All Cap Value Fund
(formerly Multi Cap Value)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third All Cap Value
Fund (Institutional) declined 8.53% on a net of fee basis, lagging one of its
benchmarks, the Russell 3000(R) Value Index, which retreated 6.79%; while
outperforming its other benchmark, the Russell Midcap(R) Value Index, which
retreated 9.26%.
The Fund's performance, like equity markets generally, was affected by a number
of negative factors during the period. While the housing market collapsed,
aftershocks from subprime mortgage problems contributed to a squeeze in credit
markets. The Federal Reserve's slow response unsettled investors while the
rising price of oil kept inflationary worries in play. Finally, when the holiday
shopping season got off to a tepid start, an economic slowdown seemed probable.
Against this backdrop, large cap stocks generally outperformed mid and small cap
holdings, due in part to the stability of larger companies. Such companies also
tend to have more exposure to overseas markets, which may have contributed
positively to performance when the value of the U.S. dollar dropped during the
period.
Although the Fund increased its exposure to large cap names - the average
weighted market cap increased to $82 billion - stock selection hindered
performance over the six months. For example, within the consumer staples
sector, food producers and retailers that saw rising input costs compress profit
margins detracted from returns.
Elsewhere, semiconductor chip companies that rely on vibrant consumer markets
pulled down the Fund's information technology stake and energy sector holdings
sagged due to minimal exposure to overseas oil service companies, which did
well.
An underweight position in the beleaguered financials sector contributed
positively to performance, as did an aversion to companies negatively impacted
by the subprime mortgage industry woes. Separately, a buyout bolstered the
Fund's telecommunication services stake.
The downturn in the financials sector generated a number of favorable
risk-reward situations that the Fund capitalized upon. In turn, the Fund exited
stocks from the consumer discretionary and information technology sectors that
had enjoyed price gains or were no longer attractive from a valuation
standpoint.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Small capitalization funds typically carry additional risk since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
large company stocks on average.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional -8.53% -4.72% 15.93% 8.91%
- --------------------------------------------------------------------------------
Class A Shares -13.20% -9.72% 14.46% 8.08%
- --------------------------------------------------------------------------------
Class B Shares -12.85% -9.71% 14.55% 8.13%
- --------------------------------------------------------------------------------
Class C Shares -9.75% -5.69% 14.77% 8.13%
- --------------------------------------------------------------------------------
Russell 3000(R) Value Index(1) -6.79% -5.69% 14.68% 7.45%
- --------------------------------------------------------------------------------
Russell Midcap(R) Value Index(1) -9.26% -8.18% 17.79% 9.89%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.37% (Institutional Shares), 1.63% (Class A), and 2.38% (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
5.0%. 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 All 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
All 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 All 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Fifth Third Institutional Money Market Fund .......................... 3.43%
JPMorgan Chase & Co .................................................... 2.94%
Exxon Mobil Corp. ...................................................... 2.93%
Bank of America Corp. ................................................. 2.71%
Bank of New York Mellon Corp. (The) .................................... 2.64%
Verizon Communications, Inc. ........................................... 2.55%
ConocoPhillips ......................................................... 2.37%
American International Group, Inc. ..................................... 2.35%
Citigroup, Inc. ........................................................ 2.34%
Marathon Oil Corp. ..................................................... 2.25%
+ Portfolio composition is subject to change.
10
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Disciplined Large Cap Value Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Disciplined
Large Cap Value Fund (Institutional) declined 5.53% on a net of fee basis,
compared to its benchmark, the Russell 1000(R) Value Index, which retreated
6.51%.
The stock market's contraction occurred as the credit crisis continued to unfold
and investors grappled with the impact on the overall economy, specific sectors
and individual companies. Large cap issues generally outperformed small cap and
mid cap names, reflecting in part the greater potential resiliency of bigger,
more diversified companies in an economic downturn, especially among those with
considerable exposure to overseas markets.
Large cap stocks also benefited from more attractive valuations entering the
period, and within the benchmark, the leading sectors were fairly defensive:
utilities, consumer staples and energy. The poorest performers were generally
cyclical in nature: information technology, consumer discretionary and
financials.
Compared to the benchmark, the Fund's performance benefited in part from stock
selection within the financials, information technology and telecommunication
services sectors. In addition, an underweight stake in the financials group,
featuring an avoidance of stocks most impacted by the subprime lending and
mortgage squeeze, tended to help relative returns.
More broadly, the Fund's cautious posturing with respect to risk also proved
advantageous, as it was underexposed to highly leveraged companies and those
with more volatile trading profiles.
Conversely, sub-benchmark returns in the energy, consumer staples and
industrials sectors diminished relative performance. Elsewhere, an overweight
position in the sagging information technology sector detracted from the Fund's
performance, as did underexposure to the rallying utilities sector.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ -------
Institutional -5.53% -3.47% 14.57% 6.07%
- --------------------------------------------------------------------------------
Class A Shares -10.36% -8.51% 13.12% 5.26%
- --------------------------------------------------------------------------------
Class B Shares -10.40% -8.89% 13.18% 5.08%
- --------------------------------------------------------------------------------
Class C Shares -6.86% -4.45% 13.41% 5.07%
- --------------------------------------------------------------------------------
Russell 1000(R) Value Index(1) -6.51% -4.83% 14.61% 7.40%
- --------------------------------------------------------------------------------
Lipper Equity Income Funds Average(1) -4.20% -2.01% 12.67% 6.17%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.07% (Institutional Shares), 1.32% (Class A) 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 reflect the maximum sales charge of
5.0%. 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 and Class C of the Disciplined Large Cap Value Fund are
August 11, 1998, October 11, 2000 and January 27, 1997, 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 and Class
C.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Bank of America Corp. .................................................. 4.08%
JPMorgan Chase & Co. ................................................... 3.92%
AT&T, Inc. ............................................................. 3.48%
ConocoPhillips ......................................................... 3.39%
MetLife, Inc. .......................................................... 3.33%
Chevron Corp. .......................................................... 3.27%
General Electric Co. ................................................... 2.86%
Kraft Foods, Inc., Class A ............................................ 2.50%
Fifth Third Institutional Money Market Fund ............................ 2.49%
American International Group, Inc. ..................................... 2.35%
+ Portfolio composition is subject to change.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Structured Large Cap Plus Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Structured
Large Cap Plus Fund (Institutional) declined 5.90% on a net of fee basis,
underperforming its benchmarks, the S&P 500 Index, which retreated 4.32%; and
the Russell 1000(R) Index, which declined 5.43%.
Financial market and economic uncertainties contributed to extreme volatility in
the period. From a style perspective, growth stocks outperformed value holdings,
extending a theme that started earlier in 2007. The growth-value difference,
however, narrowed considerably amid a significant sector rotation in January,
especially after the Federal Reserve surprised the market with a 75-basis-point
rate cut on January 22. Within such volatility, quantitative approaches tend to
struggle, which contributed to the Fund's underperformance.
Along with the sector gyrations in January, wholesale shifts occurred in the
performance of the four broad factor groups weighed by the quantitative
mathematical model used by the Fund to assess equities. For example, sentiment
factors, which tend to do well when growth stocks outperform, rallied through
the first five months of the period, but slumped substantially in January.
Valuation factors, which tend to align more with value stock performance, lagged
through December and rebounded in January. For the entire period, sentiment
factors provided a modest boost to performance, valuation factors detracted from
returns and the two other factor groups, earnings quality and capital use,
generated mixed results.
From a sector standpoint, an underweight stake, relative to the benchmark, in
the sagging financials sector lifted relative performance, as did an overweight
position in health care, a traditional safe haven. Detractors included an
overweight position in information technology, which saw a sharp reversal in
momentum and sentiment when the economic outlook dimmed, and an overweight in
consumer discretionary stocks, which faded following a disappointing holiday
shopping season.
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.
The Fund is subject to risks associated with short selling, which may result in
the Fund sustaining greater losses or lower returns than if the Fund held only
long positions.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional -5.90% -6.78% 10.93% 3.79%
- --------------------------------------------------------------------------------
Class A Shares -10.81% -11.76% 9.51% 2.99%
- --------------------------------------------------------------------------------
Class B Shares -11.03% -12.29% 9.56% 2.74%
- --------------------------------------------------------------------------------
Class C Shares -7.36% -7.70% 9.84% 2.74%
- --------------------------------------------------------------------------------
Russell 1000(R) Index(1) -5.43% -1.77% 12.89% 5.46%
- --------------------------------------------------------------------------------
S&P 500 Index(1) -4.32% -2.31% 12.04% 5.14%
- --------------------------------------------------------------------------------
Lipper Large-Cap Core Funds Average(1) -4.71% -2.69% 10.79% 4.31%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 1.30% (Institutional Shares), 1.55% (Class A), 2.30% (Class B) and
2.29% (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 5.0%. 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 and Class C Shares is October 29, 2001. The quoted
performance of Class B and Class C Shares reflects the performance of the
Institutional Shares and is adjusted to reflect expenses and applicable sales
charges for Class B and Class C Shares.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Exxon Mobil Corp. ...................................................... 3.55%
Microsoft Corp. ........................................................ 2.60%
JPMorgan Chase & Co. ................................................... 1.88%
Pfizer, Inc. ........................................................... 1.64%
Apple, Inc. ............................................................ 1.57%
International Business Machines Corp. .................................. 1.45%
General Electric Co. ................................................... 1.32%
Walt Disney Co. (The). ................................................. 1.28%
Halliburton Co. ........................................................ 1.28%
Altria Group, Inc. ..................................................... 1.25%
+ Portfolio composition is subject to change.
12
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Equity Index Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Equity Index
Fund (Institutional) retreated 4.41% on a net of fee basis, compared to its
benchmark, the S&P 500 Index, which declined 4.32%.
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, 20 Index changes were
implemented, including 16 related to merger and acquisition activity.
During the dreary period for equities, turmoil in the world's fixed income
markets limited access to capital and stirred economic worries. Issues rooted in
the U.S. subprime mortgage market grew increasingly global in nature and weighed
on the world's financial markets. Meanwhile, expectations for an economic
slowdown in the U.S. gained momentum, despite an aggressive Federal Reserve,
which cut its key lending rate from 5.25% to 3.00% during the period. Amid the
turmoil, large cap stocks outperformed smaller equities and growth holdings
modestly outperformed value names.
Adopting a defensive mindset, investors bid stocks in the utilities and consumer
staples sectors higher, seeking more stable earnings growth. The materials
sector also ranked among the leading performers as agriculture-related stocks
boomed in light of rising commodity prices and unceasing growth in demand for
crops for food and alternative fuels.
The poorest performing sector, consumer discretionary, declined as consumer
confidence dimmed and retailers endured a disappointing holiday shopping season.
Elsewhere, challenging conditions weighed on stocks in the financials sector,
especially those exposed to the subprime mortgage industry, while competitive
pressures and tighter margins dragged on the telecommunication services sector.
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 January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional -4.41% -2.47% 11.78% 4.86%
- --------------------------------------------------------------------------------
Class A Shares -9.33% -7.59% 10.36% 4.06%
- --------------------------------------------------------------------------------
Class B Shares -9.64% -8.27% 10.41% 3.81%
- --------------------------------------------------------------------------------
Class C Shares -5.84% -3.46% 10.68% 3.82%
- --------------------------------------------------------------------------------
Select Shares -4.46% -2.56% 11.69% 4.78%
- --------------------------------------------------------------------------------
Preferred Shares -4.49% -2.63% 11.60% 4.70%
- --------------------------------------------------------------------------------
Trust Shares -4.54% -2.73% 11.51% 4.60%
- --------------------------------------------------------------------------------
S&P 500 Index(1) -4.32% -2.31% 12.04% 5.14%
- --------------------------------------------------------------------------------
Lipper S&P 500 Index Objective
Funds Average(1) -4.61% -2.87% 11.43% 4.67%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 0.61% (Institutional Shares), 0.86% (Class A), 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 reflect the maximum sales charge of 5.0%.
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 and
Class C is October 29, 2001. Prior to such date, quoted performance of Class B
and Class C reflects performance of the Institutional Shares and is adjusted to
reflect expenses and applicable sales charges for Class Band Class C. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Exxon Mobil Corp. ...................................................... 3.87%
General Electric Co. ................................................... 2.93%
Microsoft Corp. ........................................................ 2.15%
AT&T, Inc. ............................................................. 1.91%
Procter & Gamble Co. ................................................... 1.68%
Bank of America Corp. .................................................. 1.61%
Johnson & Johnson ...................................................... 1.48%
Chevron Corp. .......................................................... 1.46%
JPMorgan Chase & Co. ................................................... 1.31%
Pfizer, Inc. ........................................................... 1.31%
+ Portfolio composition is subject to change.
13
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Balanced Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Balanced Fund
(Institutional) advanced 2.86% on a net of fee basis, as compared to the S&P 500
Index return of 4.32% and the Lehman Brothers Aggregate Bond Index return of
6.82%.
The subprime mortgage crisis dominated the headlines during the period,
contributing to market volatility and unsettling the confidence of investors.
Stocks reacted to the resulting disruption in the credit markets by moving
sharply lower. Bonds offered mixed returns, led by short-term notes, which
benefited from the Federal Reserve's aggressive cuts in its key lending rates to
help calm global financial market turbulence.
The financials sector was one of the worst performers within the S&P 500 Index
as credit market concerns plagued financial stocks. Yet an underweight position,
relative to the benchmark, and effective stock selection helped the Fund top the
benchmark in the sector.
Elsewhere, solid stock picks in the consumer discretionary sector enhanced
returns, as did agriculture-related names within the materials sector. With
commodity prices rising, the prospects for seed and fertilizer companies
steadily improved, which boosted their stock prices.
Holdings within the information technology and utilities sectors generally
lagged during the period.
The fixed income portion of the Fund trailed its benchmark due primarily to
considerable exposure to mortgage markets, which suffered in the wake of the
subprime mortgage debacle. The largest shortfall came from commercial mortgage
backed securities. Despite strong fundamentals, historic lows in delinquencies
and defaults and seasoned characteristics that reflected more stringent
underwriting, the Fund's high quality holdings sagged.
Positive contributors included a modest stake in Treasury issues, which led the
bond market, and a small exposure to foreign currencies, which performed well as
the U.S. dollar sagged throughout the period.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional 2.86% 7.20% 7.51% 3.94%
- --------------------------------------------------------------------------------
Class A Shares -2.44% 1.58% 6.14% 3.17%
- --------------------------------------------------------------------------------
Class B Shares -2.64% 1.12% 6.13% 2.86%
- --------------------------------------------------------------------------------
Class C Shares 1.35% 6.13% 6.43% 2.99%
- --------------------------------------------------------------------------------
S&P 500 Index(1) -4.32% -2.31% 12.04% 5.14%
- --------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index(1) 6.82% 8.81% 4.76% 6.02%
- --------------------------------------------------------------------------------
Lipper Balanced Funds Average(1) -1.07% 1.11% 9.17% 5.14%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.45% (Institutional Shares), 1.71% (Class A) and 2.47% (Class 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
5.0%. 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 and Class C 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 and Class C.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
Fifth Third Institutional Money Market Fund ............................ 16.98%
Banc of America Funding Corp., Series 2006-G, Class 3A2 ................ 4.07%
American Home Mortgage Investment Trust, Series 2005-2, Class 5A4D ..... 3.55%
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12,
Class 13A1 .......................................................... 2.22%
Morgan Stanley Mortgage Loan Trust, Series 2004-4, Class 3A ............ 1.66%
Fifth Third Institutional Money Market Fund ............................ 1.61%
Northern Trust Corp. ................................................... 1.54%
Procter & Gamble Co. ................................................... 1.47%
Baxter International, Inc. ............................................. 1.44%
US Bancorp. ............................................................ 1.43%
+ Portfolio composition is subject to change.
14
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
International Equity Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third International
Equity Fund (Institutional) declined 5.16% on a net of fee basis, outperforming
its benchmark, the MSCI EAFE Index, which dropped 8.23%.
Overseas stocks slumped as spreading worries over the impact of subprime
mortgage problems in the U.S. spread across the globe. Meanwhile, export-reliant
countries grew concerned over a potential U.S. economic slowdown and the
possible repercussions.
On November 29, 2007, the Fund's strategy changed to a quantitative approach
that emphasizes stock selection as the primary driver of investment decisions,
with secondary contributions at the country and sector levels. As a result, the
Fund expects to hold between 125-250 stocks going forward, as opposed to the
previous count of more than 1,000, and country and sector weightings will be
closer to the benchmark. In addition, the Fund will focus on stocks from
developed countries, where data tends to be more reliable, although it may
occasionally invest in emerging market stocks.
December was essentially a month of transition for the Fund as the statistical
model that forecasts potential returns was implemented. Ultimately, the model
will seek out companies with attractive valuations, positive sentiment,
disciplined capital use and earnings quality - four factors that have
historically generated risk-adjusted market-beating returns.
Over the final two months of the period, investments in Germany and France
boosted relative performance, as did a modestly underweight stake, relative to
the benchmark, in the woeful financials sector. Robust commodity markets lifted
the materials sector, which further enhanced the Fund's returns.
Conversely, exposure in Norway and Spain detracted from relative performance, as
did investments in the health care and utilities sectors.
Early period exposure to emerging markets equities, which outperformed stocks
from developed economies, further enhanced six-month performance figures.
Investment Risk Considerations
- --------------------------------------------------------------------------------
An investment in this Fund entails the special risks of international investing,
including currency exchange fluctuation, government regulations, and the
potential for political and economic instability. The Fund's share price is
expected to be more volatile than that of a U.S.-only fund.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional -5.16% 4.15% 19.00% 7.16%
- --------------------------------------------------------------------------------
Class A Shares -10.10% -1.36% 17.52% 6.40%
- --------------------------------------------------------------------------------
Class B Shares -9.98% -1.64% 17.59% 6.13%
- --------------------------------------------------------------------------------
Class C Shares -6.52% 3.11% 17.81% 6.16%
- --------------------------------------------------------------------------------
MSCI EAFE Index(1) -8.23% -2.09% 17.51% 5.12%
- --------------------------------------------------------------------------------
Lipper International Large-Cap Core
Funds Average(1) -5.52% 1.42% 18.34% 6.53%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.34% (Institutional Shares), 1.59% (Class A) and 2.34% (Class 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
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Top Ten Equity Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments +
Fifth Third Institutional Money Market Fund ............................ 4.25%
Telefonica SA .......................................................... 1.64%
Nestle SA .............................................................. 1.49%
Banco Santander Central Hispano SA ..................................... 1.45%
Royal Dutch Shell PLC, A Shares ........................................ 1.25%
BASF SE ................................................................ 1.17%
France Telecom SA ...................................................... 1.17%
AstraZeneca PLC ........................................................ 1.17%
Toyota Motor Corp. ..................................................... 1.16%
ENI SpA ................................................................ 1.12%
+ Portfolio composition is subject to change.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Strategic Income Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Strategic
Income Fund (Institutional) advanced 1.38% on a net of fee basis, lagging its
primary benchmark, the Lehman Brothers Intermediate Credit Bond Index, which
returned 5.61%, and its secondary benchmark, the Lehman Brothers U.S. Aggregate
Bond Index, which returned 6.82%.
The Federal Reserve was busy during the period, cutting its key lending rate 225
basis points. Designed to alleviate some of the concerns over slowing economic
growth, the rate cuts failed to prevent a flight to quality that punished
preferred stocks and real estate investment trusts (REITs) while rewarding U.S.
Treasury investors with market-leading returns.
The Fund's exposure to preferred stocks had been trimmed significantly in 2006,
but the magnitude of their 2007 underperformance - preferred stocks trailed
Treasuries by 18% - hindered relative performance. Although the high yield
equities rallied somewhat in January 2008, the group couldn't avoid the troubles
of the financial industry, which includes the majority of preferred stock
issuers.
Similarly, REITs suffered with the rest of the slumping real estate industry,
falling from highs achieved during a recent four-year climb. Although
fundamentals remained strong in the group, investors' sentiment changed
decidedly as the subprime mortgage issues spread.
Considering the market environment, the Fund exited all but a few REITs during
the period. Conversely, some compelling valuations in the preferred stock space
emerged in the period's closing weeks.
Positive contributors included overseas bonds, in which the Fund gradually
expanded its exposure, and the selection of higher quality preferred stocks and
REITs, which still lost ground, but not as much as riskier, lower quality
issues.
Although there have been rocky periods in the past six months, the Fund's
strategy of investing in what the Adviser believes to be income producing, high
quality assets, is designed to ultimately prove advantageous for patient
investors, regardless of any short-term volatility.
Investment Risk Considerations
- --------------------------------------------------------------------------------
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional 1.38% -0.02% 5.39% 6.00%
- --------------------------------------------------------------------------------
Class A Shares -3.83% -5.26% 4.01% 5.16%
- --------------------------------------------------------------------------------
Class B Shares -3.90% -5.54% 4.03% 5.08%
- --------------------------------------------------------------------------------
Class C Shares -0.07% -0.94% 4.35% 5.03%
- --------------------------------------------------------------------------------
Lehman Brothers U.S. Aggregate Bond
Index(1) 6.82% 8.81% 4.76% 6.02%
- --------------------------------------------------------------------------------
Lehman Brothers Intermediate Credit
Bond Index(1) 5.61% 7.40% 4.80% 6.03%
- --------------------------------------------------------------------------------
Lipper Flexible Income Funds
Average(1) -0.88% -0.24% -1.26% -2.06%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.36% (Institutional Shares), 1.61% (Class A) and 2.36% (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
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments +
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Preferred Stocks 38.36
Corporate Bonds 23.23
Foreign Bonds 7.50
Investment Companies 7.14
Mortgage-Backed Securities 6.50
U.S. Government Agencies 5.26
Common Stocks 4.69
Investments in Affiliates 2.96
Asset-Backed Securities 2.52
Real Estate Investment Trusts 1.03
U.S. Treasury Obligations 0.81
+ Portfolio composition is subject to change.
16
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Fifth Third LifeModel
Aggressive Fund(SM)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third LifeModel
Aggressive Fund (Institutional) retreated 3.98% on a net of fee basis, while its
benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate
Government/Credit Bond indices, declined 3.35%.
During the period, credit problems that originated in the U.S. subprime mortgage
space permeated the world's financial markets, especially tainting lower quality
assets and holdings associated with the financials sector or housing industry.
Growing expectations for an economic slowdown in the U.S. further complicated
the situation.
Large cap domestic stocks tended to perform better than mid cap and small cap
equities during the period. In addition, international stocks tended to be more
stable and fared well relative to U.S. equities. Within fixed income markets,
U.S. Treasury issues led the way, benefiting from a flight to quality. In an
effort to ease conditions, the Federal Reserve cut its key lending rate 225
basis points during the period - from 5.25% to 3.00%.
Within the Fund, a focus on higher quality large cap growth stocks tended to aid
relative returns, as did a significant stake in international equities. A modest
investment in small cap stocks weighed on relative performance, as did a minimal
bond position.
At the period's end, economic growth concerns had spread internationally, the
extent of the U.S. housing collapse remained uncertain and market volatility was
seemingly a constant. The Federal Reserve acted with rate cuts, while
corporations - outside of the troubled financials sector - continued to report
respectable earnings. Although an economic slowdown in the coming quarters
appears likely, the Fund intends to emphasize large-cap growth and international
stocks and to exercise caution in the fixed income space, which it believes will
position it well for anticipated market turbulence.
Investment Risk Considerations
- --------------------------------------------------------------------------------
The Fund invests in underlying funds, so its investment performance is directly
related to the performance of those underlying funds. Before investing,
investors should assess the risks associated with and types of investments made
by each of the underlying funds in which the Fund invests. Stocks are more
volatile and carry more risk and return potential than other forms of
investments. Bonds offer a relatively stable level of income, although bond
prices will fluctuate, providing the potential for principal gain or loss. Cash
equivalents offer low risk and low return potential.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year 5 Year Inception
--------- --------- ------ ------ ----------
Institutional 8/1/02 -3.98% 0.32% 13.43% 11.08%
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -8.98% -4.98% 11.95% 9.73%
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -8.87% -5.21% 12.02% 9.82%
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -5.50% -0.81% 12.25% 9.93%
- --------------------------------------------------------------------------------
Dow Jones
Wilshire 5000 Index(1) -5.40% -4.34% 11.25% 8.99%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index(1) 7.10% 9.63% 4.50% 5.02%
- --------------------------------------------------------------------------------
LifeModel Aggressive
Target Neutral Asset
Class Index Blend(1) -3.35% -1.39% 11.81% 10.35%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 0.50% (Institutional Shares), 0.75% (Class A) and 1.50% (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
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments(1)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Fifth Third International Equity Fund 21.96
Fifth Third Quality Growth Fund 21.78
Fifth Third Structured Large Cap Plus Fund 15.08
Fifth Third Disciplined Large Cap Value Fund 12.55
Fifth Third Mid Cap Growth Fund 9.30
Fifth Third All Cap Value Fund 6.20
Fifth Third Total Return Bond Fund 4.34
Fifth Third Small Cap Growth Fund 3.67
Fifth Third Small Cap Value Fund 2.62
Fifth Third Short Term Bond Fund 1.78
Fifth Third Institutional Money Market Fund 0.40
Fifth Third High Yield Bond Fund 0.32
+ Portfolio composition is subject to change.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Fifth Third LifeModel
Moderately Aggressive Fund(SM)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third LifeModel
Moderately Aggressive Fund (Institutional) declined 2.58% on a net of fee basis,
while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers
Intermediate Government/Credit Bond indices, dropped 1.03%.
During the period, credit problems that originated in the U.S. subprime mortgage
space permeated the world's financial markets, especially tainting lower quality
assets and holdings associated with the financials sector or housing industry.
The fixed income markets experienced turmoil in August and November, as the
considerable unknowns worried investors. Growing expectations for an economic
slowdown in the U.S. further complicated the situation.
Large cap domestic stocks tended to perform better than mid cap and small cap
equities during the period. In addition, international stocks tended to be more
stable and fared well relative to U.S. equities. Within fixed income markets,
U.S. Treasury issues led the way, benefiting from a flight to quality. In an
effort to ease conditions, the Federal Reserve cut its key lending rate 225
basis points during the period - from 5.25% to 3.00%.
Within the Fund, a focus on higher quality large cap growth stocks tended to aid
relative returns, as did a stake in international equities. A modest investment
in small cap stocks weighed on relative performance, as did the Fund's bond
exposure.
At the period's end, economic growth concerns had spread internationally, the
extent of the U.S. housing collapse remained uncertain and market volatility was
seemingly a constant. The Federal Reserve acted with rate cuts, while
corporations - outside of the troubled financials sector - continued to report
respectable earnings. Although an economic slowdown in the coming quarters
appears likely, the Fund intends to emphasize large-cap growth and international
stocks and to exercise caution in the fixed income space, which it believes will
position it well for anticipated market turbulence.
Investment Risk Considerations
- --------------------------------------------------------------------------------
The Fund invests in underlying funds, so its investment performance is directly
related to the performance of those underlying funds. Before investing,
investors should assess the risks associated with and types of investments made
by each of the underlying funds in which the Fund invests. Stocks are more
volatile and carry more risk and return potential than other forms of
investments. Bonds offer a relatively stable level of income, although bond
prices will fluctuate, providing the potential for principal gain or loss. Cash
equivalents offer low risk and low return potential.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year 5 Year Inception
--------- --------- ------ ------ ----------
Institutional 8/1/02 -2.58% 1.21% 11.26% 10.41%
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -7.57% -4.12% 9.85% 9.10%
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -7.52% -4.36% 9.90% 9.19%
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -3.94% 0.23% 10.18% 9.32%
- --------------------------------------------------------------------------------
Dow Jones
Wilshire 5000 Index(1) -5.40% -4.34% 11.25% 8.99%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index(1) 7.10% 9.63% 4.50% 5.02%
- --------------------------------------------------------------------------------
LifeModel Moderately
Aggressive Target
Neutral Asset Class
Index Blend(1) -1.03% 1.09% 10.23% 9.27%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 0.50% (Institutional Shares), 0.75% (Class A) and 1.50% (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
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Fifth Third Total Return Bond Fund 18.83
Fifth Third International Equity Fund 17.03
Fifth Third Quality Growth Fund 16.82
Fifth Third Structured Large Cap Plus Fund 11.86
Fifth Third Disciplined Large Cap Value Fund 9.69
Fifth Third Short Term Bond Fund 7.38
Fifth Third Mid Cap Growth Fund 7.29
Fifth Third All Cap Value Fund 4.82
Fifth Third Small Cap Growth Fund 2.82
Fifth Third Small Cap Value Fund 2.00
Fifth Third High Yield Bond Fund 1.37
Fifth Third Institutional Money Market Fund 0.09
+ Portfolio composition is subject to change.
18
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Fifth Third LifeModel
Moderate Fund(SM)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third LifeModel
Moderate Fund (Institutional) declined 1.12% on a net of fee basis, while its
benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate
Government/Credit Bond indices, advanced 1.28%.
During the period, credit problems that originated in the U.S. subprime mortgage
space permeated the world's financial markets, especially tainting lower quality
assets and holdings associated with the financials sector or housing industry.
The fixed income markets experienced turmoil in August and November, as the
considerable unknowns worried investors. Growing expectations for an economic
slowdown in the U.S. further complicated the situation.
Large cap domestic stocks tended to perform better than mid cap and small cap
equities during the period. In addition, international stocks tended to be more
stable and fared well relative to U.S. equities. Within fixed income markets,
U.S. Treasury issues led the way, benefiting from a flight to quality. In an
effort to ease conditions, the Federal Reserve cut its key lending rate 225
basis points during the period - from 5.25% to 3.00%.
Within the Fund, a focus on higher quality large cap growth stocks tended to aid
relative returns, as did exposure to international equities. A modest investment
in small cap stocks weighed on relative performance, as did the Fund's bond
exposure.
At the period's end, economic growth concerns had spread internationally, the
extent of the U.S. housing collapse remained uncertain and market volatility was
seemingly a constant. The Federal Reserve acted with rate cuts, while
corporations - outside of the troubled financials sector - continued to report
respectable earnings. Although an economic slowdown in the coming quarters
appears likely, the Fund intends to emphasize large-cap growth and international
stocks and to exercise caution in the fixed income space, which it believes will
position it well for anticipated market turbulence.
Investment Risk Considerations
- --------------------------------------------------------------------------------
The Fund invests in underlying funds, so its investment performance is directly
related to the performance of those underlying funds. Before investing,
investors should assess the risks associated with and types of investments made
by each of the underlying funds in which the Fund invests. Stocks are more
volatile and carry more risk and return potential than other forms of
investments. Bonds offer a relatively stable level of income, although bond
prices will fluctuate, providing the potential for principal gain or loss. Cash
equivalents offer low risk and low return potential.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year 5 Year Inception
--------- --------- ------ ------ ----------
Institutional 8/1/02 -1.12% 2.23% 9.24% 8.21%
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -6.11% -3.08% 7.85% 6.94%
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -6.13% -3.37% 7.85% 7.00%
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -2.50% 1.26% 8.16% 7.15%
- --------------------------------------------------------------------------------
Dow Jones
Wilshire 5000 Index(1) -5.40% -4.34% 11.25% 8.99%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index(1) 7.10% 9.63% 4.50% 5.02%
- --------------------------------------------------------------------------------
LifeModel Moderate
Target Neutral Asset
Class Index Blend(1) 1.28% 3.56% 8.62% 8.12%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 0.45% (Institutional Shares), 0.70% (Class A) and 1.45% (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
5.0%. 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
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Fifth Third Total Return Bond Fund 32.84
Fifth Third Short Term Bond Fund 13.01
Fifth Third Quality Growth Fund 12.34
Fifth Third International Equity Fund 12.16
Fifth Third Structured Large Cap Plus Fund 7.78
Fifth Third Disciplined Large Cap Value Fund 7.27
Fifth Third Mid Cap Growth Fund 5.17
Fifth Third All Cap Value Fund 3.48
Fifth Third High Yield Bond Fund 2.31
Fifth Third Small Cap Growth Fund 1.92
Fifth Third Small Cap Value Fund 1.33
Fifth Third Institutional Money Market Fund 0.39
+ Portfolio composition is subject to change.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Fifth Third LifeModel
Moderately Conservative Fund(SM)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third LifeModel
Moderately Conservative Fund (Institutional) slipped 0.39% on a net of fee
basis, while its benchmark, a blend of the Wilshire 5000 and Lehman Brothers
Intermediate Government/Credit Bond indices, advanced 2.45%.
During the period, credit problems that originated in the U.S. subprime mortgage
space permeated the world's financial markets, especially tainting lower quality
assets and holdings associated with the financials sector or housing industry.
Growing expectations for an economic slowdown in the U.S. further complicated
the situation.
The fixed income markets experienced turmoil in August and November, as the
considerable unknowns worried investors. In an effort to ease conditions, the
Federal Reserve cut its key lending rate 225 basis points during the period -
from 5.25% to 3.00%. Ultimately, U.S. Treasury issues led the market, benefiting
from a flight to quality.
Large cap domestic stocks tended to perform better than mid cap and small cap
equities during the period. In addition, international stocks tended to be more
stable and fared well relative to U.S. equities.
Within the Fund, bond investments, including exposure in short term and high
yield markets, offered mixed returns. Meanwhile, a focus on higher quality large
cap growth stocks and international equities boosted the Fund's stock
allocation.
At the period's end, economic growth concerns had spread internationally, the
extent of the U.S. housing collapse remained uncertain and market volatility was
seemingly a constant. The Federal Reserve acted with rate cuts, while
corporations - outside of the troubled financials sector - continued to report
respectable earnings. Although an economic slowdown in the coming quarters
appears likely, the Fund intends to exercise caution in the fixed income space
and to maintain a modest emphasis on large-cap growth and international stocks,
which it believes will position it well for anticipated market turbulence.
Investment Risk Considerations
- --------------------------------------------------------------------------------
The Fund invests in underlying funds, so its investment performance is directly
related to the performance of those underlying funds. Before investing,
investors should assess the risks associated with and types of investments made
by each of the underlying funds in which the Fund invests. Stocks are more
volatile and carry more risk and return potential than other forms of
investments. Bonds offer a relatively stable level of income, although bond
prices will fluctuate, providing the potential for principal gain or loss. Cash
equivalents offer low risk and low return potential.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year 5 Year Inception
--------- --------- ------ ------ ----------
Institutional 8/1/02 -0.39% 2.61% 8.02% 6.98%
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -5.50% -2.70% 6.69% 5.72%
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -5.42% -2.93% 6.66% 5.79%
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -1.75% 1.73% 6.97% 5.93%
- --------------------------------------------------------------------------------
Dow Jones
Wilshire 5000 Index(1) -5.40% -4.34% 11.25% 8.99%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index(1) 7.10% 9.63% 4.50% 5.02%
- --------------------------------------------------------------------------------
LifeModel Moderately
Conservative Target
Neutral Asset
Class Index Blend(1) 2.45% 4.79% 7.81% 7.53%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 0.55% (Institutional Shares), 0.79% (Class A) 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 reflect the maximum sales charge of
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Fifth Third Total Return Bond Fund 39.92
Fifth Third Short Term Bond Fund 15.74
Fifth Third Quality Growth Fund 9.31
Fifth Third International Equity Fund 9.17
Fifth Third Structured Large Cap Plus Fund 7.74
Fifth Third Disciplined Large Cap Value Fund 5.15
Fifth Third Mid Cap Growth Fund 4.11
Fifth Third High Yield Bond Fund 2.89
Fifth Third All Cap Value Fund 2.77
Fifth Third Small Cap Growth Fund 1.61
Fifth Third Small Cap Value Fund 1.25
Fifth Third Institutional Money Market Fund 0.34
+ Portfolio composition is subject to change.
20
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Fifth Third LifeModel
Conservative Fund(SM)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third LifeModel
Conservative Fund (Institutional) advanced 0.84% on a net of fee basis, while
its benchmark, a blend of the Wilshire 5000 and Lehman Brothers Intermediate
Government/Credit Bond indices, gained 4.78%.
During the period, credit problems that originated in the U.S. subprime mortgage
space permeated the world's financial markets, especially tainting lower quality
assets and holdings associated with the financials sector or housing industry.
Growing expectations for an economic slowdown in the U.S. further complicated
the situation.
The fixed income markets experienced turmoil in August and November, as the
considerable unknowns worried investors. In an effort to ease conditions, the
Federal Reserve cut its key lending rate 225 basis points during the period -
from 5.25% to 3.00%. Ultimately, U.S. Treasury issues led the market, benefiting
from a flight to quality.
Large cap domestic stocks tended to perform better than mid cap and small cap
equities during the period. In addition, international stocks tended to be more
stable and fared well relative to U.S. equities.
Within the Fund, bond investments, including exposure in short term and high
yield markets, offered mixed returns. Meanwhile, a focus on higher quality large
cap growth stocks and a small stake in international equities boosted the Fund's
stock allocation.
At the period's end, economic growth concerns had spread internationally, the
extent of the U.S. housing collapse remained uncertain and market volatility was
seemingly a constant. The Federal Reserve acted with rate cuts, while
corporations - outside of the troubled financials sector - continued to report
respectable earnings. Although an economic slowdown in the coming quarters
appears likely, the Fund intends to exercise caution in the fixed income space
and to maintain limited stakes in large-cap and international stocks, which it
believes will position it well for anticipated market turbulence.
Investment Risk Considerations
- --------------------------------------------------------------------------------
The Fund invests in underlying funds, so its investment performance is directly
related to the performance of those underlying funds. Before investing,
investors should assess the risks associated with and types of investments made
by each of the underlying funds in which the Fund invests. Stocks are more
volatile and carry more risk and return potential than other forms of
investments. Bonds offer a relatively stable level of income, although bond
prices will fluctuate, providing the potential for principal gain or loss. Cash
equivalents offer low risk and low return potential.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year 5 Year Inception
--------- --------- ------ ------ ----------
Institutional 8/1/02 0.84% 3.39% 5.93% 5.74%
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -4.35% -1.91% 4.58% 4.48%
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -4.39% -2.31% 4.56% 4.55%
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -0.58% 2.50% 4.89% 4.70%
- --------------------------------------------------------------------------------
Dow Jones
Wilshire 5000 Index(1) -5.40% -4.34% 11.25% 8.99%
- --------------------------------------------------------------------------------
Lehman Brothers
Intermediate Government/
Credit Bond Index(1) 7.10% 9.63% 4.50% 5.02%
- --------------------------------------------------------------------------------
LifeModel Conservative
Target Neutral Asset
Class Index Blend(1) 4.78% 7.22% 6.16% 6.30%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 0.63% (Institutional Shares), 0.88% (Class A) and 1.63% (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
5.0%. 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Fifth Third Total Return Bond Fund 51.80
Fifth Third Short Term Bond Fund 20.56
Fifth Third Quality Growth Fund 5.50
Fifth Third International Equity Fund 4.54
Fifth Third Structured Large Cap Plus Fund 4.15
Fifth Third High Yield Bond Fund 3.71
Fifth Third Disciplined Large Cap Value Fund 3.07
Fifth Third Mid Cap Growth Fund 2.19
Fifth Third Institutional Money Market Fund 1.51
Fifth Third All Cap Value Fund 1.46
Fifth Third Small Cap Growth Fund 0.88
Fifth Third Small Cap Value Fund 0.63
+ Portfolio composition is subject to change.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
High Yield Bond Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third High Yield Bond
Fund (Institutional) advanced 2.56% on a net of fee basis, outperforming its
benchmark, the Merrill Lynch High Yield Master Cash Pay Only Index, which
returned 1.01%.
Uncertainty regarding the U.S. economy and global liquidity issues prompted
considerable investor caution over riskier assets throughout the period. The
market's appetite for such investments was further eroded by troubles in the
subprime mortgage space (also known as "junk bonds"), housing sector and
financial industry. As a result, investors generally shunned high yield bonds.
In addition, though default rates have yet to increase materially, expectations
grew for greater levels of defaults in 2008 and 2009, reflecting a general lack
of access to new capital and anxieties stemming from a potential economic
slowdown. Meanwhile, a large backlog of pending issues from 2007 leveraged
buyout activity discouraged many potential new issuers.
Within this environment, the Fund's higher quality positioning fueled its
outperformance relative to the Fund's benchmark index. An overweight allocation
to the energy sector, which consists of stable companies that tend to do well in
volatile periods, helped most notably. Along with solid fundamentals,
exploration and production companies and oilfield service companies enjoyed
excess cash flow due to the rise in the price of oil. Further boosting the Fund
was an underweight stake in the troubled automotive industry.
Hindering performance was exposure to the homebuilding industry, which endured
significant setbacks during the period.
Emphasizing an attempt to avoid of problem credits and to protect principal in
down markets, the Fund will rely on solid fundamental analysis to seek to soften
the impact of volatile stretches. Such an approach seeks to deliver attractive
risk-adjusted returns, regardless of broader developments.
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.
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
Inception Since
Date 6 Months# 1 Year Inception
--------- --------- ------ ----------
Institutional 11/29/05 2.56% 1.22% 4.61%
- --------------------------------------------------------------------------------
Class A Shares 11/29/05 -2.70% -4.15% 1.87%
- --------------------------------------------------------------------------------
Class B Shares 11/29/05 -2.96% -4.55% 2.29%
- --------------------------------------------------------------------------------
Class C Shares 11/29/05 1.05% 0.11% 3.54%
- --------------------------------------------------------------------------------
Merrill Lynch
High Yield
Master Index(1) 1.01% 0.79% 6.04%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.15% (Institutional Shares), 1.39% (Class A), 2.15% (Class B) and
2.11% (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 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Corporate Bonds 84.59
Foreign Bonds 13.61
Investments in Affiliates 1.80
+ Portfolio composition is subject to change.
22
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Total Return Bond Fund
(formerly Bond Fund)
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Total Return
Bond Fund (Institutional) gained 4.42% on a net of fee basis, trailing its
benchmark, the Lehman Brothers Aggregate Bond Index, which advanced 6.82%.
Values on virtually any bond not issued by the U.S. government dropped during
the period as fixed income investors fled due to real and perceived credit
risks. The situation ranged from dire in low quality mortgage markets, where
demand all but dried up, to challenging in higher quality bond markets, where
stellar ratings seemed to matter little. Meanwhile, the Federal Reserve slashed
its key lending rate 225 basis points, mostly in response to shaky economic
conditions.
Designed to generate returns above and beyond government issues, the Fund lagged
its benchmark due primarily to considerable exposure to mortgage markets. The
largest shortfall came from commercial mortgage backed securities, a group that
represented the biggest overweight position, relative to the benchmark.
Elsewhere in the mortgage related space, securities related to home loans backed
by government agencies Fannie Mae and Freddie Mac also detracted from
performance. Although the federal agencies virtually guarantee the underlying
loans, the tie to the mortgage industry scared away many investors. In addition,
a small exposure to subprime mortgage loans hurt the Fund.
Positive contributors included a modest stake in Treasury issues and a small
exposure to foreign currencies, which performed well as the U.S. dollar weakened
throughout the period.
Looking ahead, more turbulence in the bond markets is likely until access to
capital is loosened. As it is difficult to determine when the situation will
ultimately improve, the Fund's goal is to ride out the bumps, comfortable with
its higher quality holdings rooted in solid fundamentals.
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
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional 4.42% 5.84% 3.75% 4.97%
- --------------------------------------------------------------------------------
Class A Shares -0.65% 0.43% 2.48% 4.20%
- --------------------------------------------------------------------------------
Class B Shares -1.13% -0.26% 2.36% 3.91%
- --------------------------------------------------------------------------------
Class C Shares 2.95% 4.82% 2.73% 3.92%
- --------------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond
Index(1) 6.82% 8.81% 4.76% 6.02%
- --------------------------------------------------------------------------------
Lipper Corporate
Debt Funds A
Rated Average(1) 4.53% 5.79% 4.30% 5.09%
- --------------------------------------------------------------------------------
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 1/31/08 the gross expense
ratios are 0.87% (Institutional Shares), 1.12 % (Class A), 1.88% (Class B) and
1.85% (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 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 Total Return 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 Total Return 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Mortgage-Backed Securities 40.78
U.S. Government Agencies 30.88
Corporate Bonds 10.10
Asset-Backed Securities 9.56
U.S. Treasury Obligations 4.39
Investments in Affiliates 1.67
Foreign Bonds 1.27
Preferred Stocks 1.22
Demand Notes 0.13
+ Portfolio composition is subject to change.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Short Term Bond Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Short Term Bond
Fund (Institutional) advanced 4.29% on a net of fee basis, trailing its
benchmark, the Merrill Lynch 1-3 Year Government/Corporate Bond Index, which
returned 5.54%.
Subprime mortgage market woes spread across fixed income markets during the
period, tainting virtually all types of issues and quality levels. Conditions
were worst in August and again in late November and early December as demand
evaporated, making it difficult to value any non-government issues. Meanwhile,
the Federal Reserve responded to deteriorating economic conditions by cutting
its key lending rate 225 basis points, including a 125-basis-point reduction
over an eight-day span in late January.
Within the Fund, residential mortgage backed securities (RMBS) hindered
performance as investors avoided most mortgage-related issues. Although it held
no direct exposure to subprime loans, the Fund was hurt by holdings tied to
prime loans and so-called Alt-A mortgages, which is a mortgage risk
categorization that falls between prime and sub-prime, but is closer to prime.
As the period progressed, investors also steered away from asset backed
securities and commercial mortgage backed securities (CMBS), two types of
investments that further weighed on the Fund's returns. Asset backed securities,
such as those tied to auto loans and credit cards, deteriorated late in the
period as concerns over consumers' financial health arose. In the CMBS space,
the market ignored generally solid fundamentals, which are quite different from
residential mortgage backed securities, while selling off notes of all
qualities.
The Fund's adherence to higher quality issues aided relative performance, as
poorer quality bonds performed decidedly worse in the downturn. In addition, an
underweight exposure to corporate bonds, which lagged the market, further
boosted relative returns.
The flipside of the challenging market was the abundance of high quality issues
available at very attractive valuations. While seeking to capitalize on such
opportunities, the Fund strived to maintain a sharp focus on underlying assets
and fundamentals to help ensure it is well-positioned for the coming quarters.
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.
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ --------
Institutional 4.29% 6.97% 3.10% 4.39%
- --------------------------------------------------------------------------------
Class A Shares 0.49% 2.82% 2.12% 3.83%
- --------------------------------------------------------------------------------
Class C Shares 2.79% 5.83% 2.06% 3.35%
- --------------------------------------------------------------------------------
Merrill Lynch 1-3 Year
Government/Corporate
Bond Index(1) 5.54% 8.45% 3.67% 5.04%
- --------------------------------------------------------------------------------
Lipper Short Investment
Grade Debt Funds
Average(1) 2.60% 4.64% 2.94% 4.25%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 0.80% (Institutional Shares), 1.05% (Class A), and 1.80% (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 are adjusted to reflect
expenses and applicable sales charges for Class C Shares.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Fund Holdings as of January 31, 2008
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Mortgage-Backed Securities 31.17
U.S. Government Agencies 24.76
Asset-Backed Securities 19.01
Corporate Bonds 13.54
U.S. Treasury Obligations 6.33
Foreign Bonds 3.28
Investments in Affiliates 1.70
Municipal Bonds 0.21
+ Portfolio composition is subject to change.
24
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Municipal Bond Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Municipal Bond
Fund (Institutional) returned 3.88% on a net of fee basis, outperforming its
benchmark, the Lehman Brothers Municipal Bond Index, which returned 3.71%.
Taking its cue from the Federal Reserve, which cut its key lending rate 225
basis points to ease worries over the country's economic prospects, yields on
short-term municipal bonds dropped significantly during the period. Rates on
long-term issues ended close to where they started, resulting in a significant
steepening of the yield curve.
With holdings concentrated in the shorter portion of the yield curve, and an
underweight stake, relative to the benchmark, in long-term bonds, the Fund was
ideally positioned to capitalize on the market's movement. Further enhancing
returns was the Fund's exposure to a number of pre-refunded bonds, or debentures
being refinanced by the original issuers. In general, higher quality bonds
outperformed lower quality issues as investors avoided riskier assets. Bonds
backed by insurers trailed the market as many of the so-called monoline insurers
acknowledged considerable exposure to the subprime mortgage market woes.
Accordingly, the Fund's modest exposure to insured issues weighed on
performance.
Despite the turmoil in the fixed income markets through the second half of the
year, a record $423 billion worth of new municipal bonds were issued in the U.S.
in 2007, with 36% of the deals completed for refinancing purposes. Uncertainties
over the ratings of monoline insurers contributed to a slower January 2008; in
which issuance was about half of what it was a year earlier.
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.
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ -------
Institutional 3.88% 5.01% 3.81% 4.54%
- --------------------------------------------------------------------------------
Class A Shares -1.23% -0.15% 2.55% 3.77%
- --------------------------------------------------------------------------------
Class B Shares -1.65% -1.07% 2.45% 3.49%
- --------------------------------------------------------------------------------
Class C Shares 2.35% 3.98% 2.79% 3.51%
- --------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index(1) 3.71% 4.93% 4.61% 5.20%
- --------------------------------------------------------------------------------
Lipper General Municipal Debt Funds
Average(1) 1.91% 2.49% 3.83% 4.08%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 1.11% (Institutional Shares), 1.36% (Class A), 2.18% (Class B) and
2.11% (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 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Bond Quality as of January 31, 2008
as represented by Standard and Poor's/Moody's Rating Agencies
- --------------------------------------------------------------------------------
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
AAA/Aaa 70.30
AA+/Aa1 7.29
AA/Aa2 3.90
AA-/Aa3 2.47
A+/A1 2.49
A/A2 3.42
A-/A3 2.40
BBB+/Baa1 1.81
BBB-/Baa3 5.24
Net Cash and Equivalents 0.68
+ Portfolio composition is subject to change.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Intermediate
Municipal Bond Fund (Institutional) returned 4.67% on a net of fee basis,
trailing its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond
Index, which gained 5.82%.
Taking its cue from the Federal Reserve, which cut its key lending rate 225
basis points to ease worries over the country's economic prospects, yields on
short-term municipal bonds dropped significantly during the period.
Interestingly, rates on long-term issues ended close to where they started,
resulting in a significant steepening of the yield curve.
With holdings concentrated in the shorter portion of the yield curve, and an
underweight stake, relative to the benchmark, in long-term bonds, the Fund was
well-positioned for the market's movement. With a modest stake in BBB rated
bonds, however, performance suffered, relative to the benchmark, as lower
quality issues sagged amid investors' avoidance of riskier assets. Notably,
bonds issued by community hospitals were caught in the downdraft, despite solid
fundamentals.
Bonds backed by insurers and investment banks also performed poorly due to
considerable exposure to the subprime mortgage market woes. Accordingly, the
Fund's small exposure to insured issues weighed on returns, as did its stake in
prepaid natural gas bonds.
One bright spot among the insured holdings were issues backed by monoline
insurer Financial Security Assurance, a conservative underwriter that
sidestepped many of the complications experienced by its peers.
Despite the turmoil in the fixed income markets through the second half of the
year, a record $423 billion worth of new municipal bonds were issued in 2007,
with 36% of the deals completed for refinancing purposes. Uncertainties over the
ratings of monoline insurers contributed to a slower January 2008, in which
issuance was about half of what it was a year earlier.
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.
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ -------
Institutional 4.67% 5.76% 3.14% 4.06%
- --------------------------------------------------------------------------------
Class A Shares 0.89% 1.85% 2.15% 3.43%
- --------------------------------------------------------------------------------
Class B Shares -0.55% 0.52% 2.39% 3.32%
- --------------------------------------------------------------------------------
Class C Shares 3.14% 4.73% 2.12% 3.02%
- --------------------------------------------------------------------------------
Lehman Brothers Quality Intermediate
Municipal Bond Index(1) 5.82% 7.54% 4.09% 4.87%
- --------------------------------------------------------------------------------
Lipper Intermediate Municipal Debt
Funds Average(1) 4.03% 5.06% 3.43% 4.21%
- --------------------------------------------------------------------------------
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 1/31/08, the gross expense
ratios are 0.90% (Institutional Shares), 1.15% (Class A), 1.90% (Classes B & C).
The total return figures for Institutional Shares reflect a sales charge of
0.0%. The total return figure 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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Bond Quality as of January 31, 2008
- --------------------------------------------------------------------------------
as represented by Standard and Poor's/Moody's Rating Agencies
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
AAA/Aaa 60.44
AA+/Aa1 4.65
AA/Aa2 4.52
AA-/Aa3 6.40
A+/A1 4.92
A/A2 1.24
A-/A3 3.96
BBB+/Baa1 5.44
BBB/Baa2 0.69
BBB-/Baa3 3.22
NR/NR 3.77
Net Cash and Equivalents 0.75
+ Portfolio composition is subject to change.
NR - Not Rated
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Ohio Municipal Bond Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Ohio Municipal
Bond Fund (Institutional) advanced 4.58% on a net of fee basis, trailing its
benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which
gained 5.82%.
Economic conditions in Ohio deteriorated during the period as the service sector
failed to make up for lost jobs within the manufacturing sector. As a result,
Ohio's unemployment rate continued to run higher than the national average, the
median household income lagged the national average and the number of people
below poverty level grew. Within the troubled housing market, foreclosure
filings jumped 88% in 2007, compared to 2006, placing Ohio within the worst 10
states for foreclosures in the U.S.
Against this backdrop, the state issued $15.6 billion worth of municipal bonds
in 2007, a 23% rise over 2006 levels. The total included a $5 billion
securitization of the state's remaining payments from the 1998 tobacco
settlement.
In general, yields on short-term municipal bonds dropped significantly during
the period, reflecting the Federal Reserve's moves to slash its key lending rate
by 225 basis points. Interestingly, rates on long-term issues ended close to
where they started, resulting in a significant steepening of the yield curve.
Within the Fund, a modest stake in BBB rated bonds suffered, relative to the
benchmark, as lower quality issues sagged amid investors' avoidance of riskier
assets. In addition, a stake in prepaid natural gas bonds weighed on returns.
Pre-refunded bonds, or debentures being refinanced by the original issuers,
contributed positively to performance, most notably in the hospital space. As
the issuers all but guarantee that the original bonds will be paid off, such
pre-refunded issues generally are assigned a higher quality rating and tend to
jump in value.
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.
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ -------
Institutional 4.58% 5.87% 3.16% 3.85%
- --------------------------------------------------------------------------------
Class A Shares -0.55% 0.57% 1.91% 3.11%
- --------------------------------------------------------------------------------
Class B Shares -0.95% -0.27% 1.76% 2.69%
- --------------------------------------------------------------------------------
Class C Shares 3.07% 4.74% 2.12% 2.87%
- --------------------------------------------------------------------------------
Lehman Brothers Quality Intermediate
Municipal Bond Index(1) 5.82% 7.54% 4.09% 4.87%
- --------------------------------------------------------------------------------
Lipper Ohio Intermediate Municipal Debt
Funds Average(1) 4.18% 5.06% 2.84% 3.60%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 0.95% (Institutional Shares), 1.20% (Class A), and 1.95% (Classes
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 are adjusted to reflect expenses and applicable sales charges for
Class B and Class C Shares.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Bond Quality as of January 31, 2008
- --------------------------------------------------------------------------------
as represented by Standard and Poor's/Moody's Rating Agencies
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
AAA/Aaa 41.41
AA+/Aa1 6.05
AA/Aa2 11.28
AA-/Aa3 13.21
A/A2 12.06
A-/A3 2.85
BBB+/Baa1 3.61
BBB-/Baa3 3.27
NR/NR 5.26
Net Cash and Equivalents 1.00
+ Portfolio composition is subject to change.
NR - Not Rated
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Michigan Municipal Bond Fund
- --------------------------------------------------------------------------------
For the six-month period ended January 31, 2008, the Fifth Third Michigan
Municipal Bond Fund (Institutional) gained 4.47% on a net of fee basis, trailing
its benchmark, the Lehman Brothers 1-5 Year Municipal Bond Index, which returned
5.36%.
Already rocky, economic conditions in Michigan continued to deteriorate during
the period as real estate values declined and the unemployment rate remained the
highest in the country. With officials projecting that personal incomes will
decrease further in 2008 and employment levels will fall through at least 2009,
the legislators passed the Michigan Business Tax into law and raised the
personal income tax rate by 11.5%. Within the troubled housing market,
foreclosure filings jumped 68% in 2007 compared to 2006, placing Michigan in the
top five states for foreclosures in the U.S.
Against this backdrop, the state issued $9.4 billion worth of municipal bonds in
2007, a 9% decline from 2006 levels. Nationally, the issuance of municipal bonds
increased by 10.5% during the same period.
In general, yields on short-term municipal bonds dropped significantly during
the period, reflecting the Federal Reserve's moves to slash its key lending rate
by 225 basis points. Rates on long-term issues ended close to where they
started, resulting in a significant steepening of the yield curve.
Within the Fund, an ineffective duration strategy, implemented in an effort to
soften the impact of interest rate moves, hindered returns. In addition, bonds
subject to the federal alternative minimum tax, including select airport,
hospital and student loan issues, detracted from the Fund's performance.
Although insured bonds across all market sectors suffered during the period due
to significant credit risks taken by so-called monoline insurers, one bright
spot for the Fund was that the bulk of its insured issues were backed by
Financial Security Assurance ("FSA"), a more conservative underwriter that
sidestepped many of the complications experienced by its peers, and as a result,
the returns of bonds backed by the FSA did not fall as far as bonds backed by
other insurers.
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.
Investors in any bond fund may be subject to fluctuations in price due to issuer
and credit quality, rising interest rates, inflation and call risks associated
with the underlying bonds owned by the fund.
Average Annual Total Returns as of January 31, 2008
- --------------------------------------------------------------------------------
6 Months# 1 Year 5 Year 10 Year
--------- ------ ------ -------
Institutional 4.47% 5.87% 2.47% 3.51%
- --------------------------------------------------------------------------------
Class A Shares -0.55% 0.83% 1.35% 2.86%
- --------------------------------------------------------------------------------
Class B Shares -1.05% -0.18% 1.08% 2.48%
- --------------------------------------------------------------------------------
Class C Shares 2.93% 4.91% 1.47% 2.49%
- --------------------------------------------------------------------------------
Lehman Brothers 1-5 Year Municipal
Bond Index(1) 5.36% 7.24% 3.22% 4.24
- --------------------------------------------------------------------------------
Lipper Other States Short-Intermediate
Municipal Debt Funds Average(1) 3.46% 4.60% 2.73% 3.58%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. The performance data quoted
represents past performance and current returns may be lower or higher. The
investment return and net asset value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. To
obtain performance information current to the most recent month end, 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 1/31/08, the gross expense
ratios are 0.99% (Institutional Shares), 1.24% (Class A), and 1.99% (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.
# Not Annualized
(1) Please refer to Glossary of Terms for additional information.
Bond Quality as of January 31, 2008
- --------------------------------------------------------------------------------
as represented by Standard and Poor's/Moody's Rating Agencies
as a percentage of value of investments+
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
AAA/Aaa 65.01
AA+/Aa1 5.08
AA/Aa2 4.40
AA-/Aa3 6.07
A+/A1 2.90
A/A2 2.52
A-/A3 1.09
BBB+/Baa1 1.82
BBB/Baa2 0.50
BBB-/Baa3 1.04
NR/NR 1.80
Net Cash and Equivalents 7.77
+ Portfolio composition is subject to change.
NR - Not Rated
28
Glossary of Terms
Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered
equity securities with readily available price data.
Duration is the weighted average maturity of a bond's cash flows.
Lehman Brothers Aggregate Bond Index is a market value-weighted performance
benchmark for investment-grade fixed-rate debt issues, including government,
corporate, asset-backed, and mortgage-backed securities, with maturities of at
least one year.
Lehman Brothers Intermediate Credit Bond Index includes all publicly issued,
fixed rate, nonconvertible investment grade dollar-denominated, SEC-registered
corporate debt. Included among yankees obligations is debt issued or guaranteed
by foreign sovereign governments, municipalities, governmental agencies, or
international agencies.
Lehman Brothers Intermediate Government/Credit Bond Index is composed of
investment grade corporate debt issues as well as debt issues of U.S. government
agencies and the U.S. Treasury agencies. The debt issues within the index all
maintain maturities within a range of one to ten years.
Lehman Brothers Municipal Bond Index is a broad market performance benchmark for
the tax-exempt bond market. The bonds included in this index must have a minimum
credit rating of at least Baa. They must have an outstanding par value of at
least $3 million and be issued as part of a transaction of at least $50 million.
The index includes both zero coupon bonds and bonds subject to the alternative
minimum tax.
Lehman Brothers 1- 5 Year Municipal Bond Index is representative of short term
municipal bonds with a maturity between one and six years.
Lehman Brothers Quality Intermediate Municipal Bond Index is generally
representative of intermediate term municipal bonds with a maturity between two
and twelve years.
Lipper Balanced Funds Average consists of funds whose primary objective is to
conserve principal by maintaining at all times a balanced portfolio of both
stocks and bonds. Typically, the stock/bond ratio ranges around 60%/40%.
Lipper Corporate Debt Funds A Rated Average consists of funds that invest at
least 65% of their assets in corporate debt issues rated "A" or better or
government issues.
Lipper Equity Income Funds Average consists of funds that seek relatively high
current income and growth of income through investing 60% or more of their
portfolio in equities.
Lipper Flexible Income Funds Average emphasizes income generation by investing
at least 85% of its assets in debt issues and preferred and convertible
securities. Common stocks and warrants cannot exceed 15%.
Lipper General Municipal Debt Funds Average consists of funds that invest at
least 65% of their assets in municipal debt issues in the top four credit
ratings.
Lipper Intermediate Municipal Debt Funds Average consists of funds that invest
in municipal debt issues with dollar-weighted average maturities of five to ten
years.
Lipper International Large-Cap Core Funds Average consists of funds that, by
portfolio practice, invest at least 75% of their equity assets in companies
strictly outside of the U.S. with market capitalizations (on a three-year
weighted basis) greater than the 250th largest company in the S&P/Citigroup
World ex-U.S. Broad Market Index. Large-cap core funds typically have an average
price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P/Citigroup World ex-U.S. BMI.
Lipper Large-Cap Core Funds Average consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) greater than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in
the companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio and three year sales-per-share
growth value, compared to the S&P 500 Index.
Lipper Mid-Cap Growth Funds Average consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P SuperComposite 1500 Index. Mid-cap growth funds typically have an
above-average price-to-earnings ratio, price-to-book ratio and three-year
sales-per-share growth value compared to the S&P MidCap 400 Index.
29
Glossary of Terms
Lipper Ohio Intermediate Municipal Debt Funds Average consists of funds that
invest at least 65% of their assets in municipal debt issues that are exempt
from taxation in Ohio, with dollar-weighted average maturities of five to ten
years.
Lipper Other States Short-Intermediate Municipal Debt Funds Average consists of
funds that invest in municipal debt issues with dollar-weighted average
maturities of five to ten years and are exempt from taxation on a specified city
or state basis.
Lipper S&P 500 Index Objective Funds Average consists of funds that are
passively managed, limited-expense (management fee no higher than 0.50%) fund
designed to replicate the performance of the S&P 500 Index on a reinvested
basis.
Lipper Short Investment Grade Debt Funds Average consists of funds that invest
at least 65% of their assets in investment grade debt issues (rated in top four
grades) with dollar-weighted average maturities of one to five years.
Lipper Small-Cap Core Funds Average consists of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of the
S&P SuperComposite 1500 Index. Small-cap core funds have more latitude in the
companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P SmallCap 600 Index.
Lipper Small-Cap Growth Funds Average consists of funds that by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of the
S&P SuperComposite 1500 Index. Small-cap growth funds typically have an
above-average price-to-earnings ratio, price-to-book ratio, and three-year
sales-per-share growth value, compared to the S&P Smallcap 600 Index.
Merrill Lynch 1-3 Year Government/Corporate Bond Index tracks the trading of
short-term U.S. government securities and short-term domestic investment-grade
corporate bonds with maturities between 1 and 2.99 years.
Merrill Lynch High Yield Master Index is a broad-based measure of the
performance of the non-investment grade U.S. domestic bond market.
The Moody's scale ranges from "Aaa" on the high end to "C" on the low end with
seven intermediate categories.
Morgan Stanley Capital International Europe, Australasia and Far East ("MSCI
EAFE") Index is a market capitalization-weighted index of equity securities of
companies domiciled in various countries. The Index is designed to represent the
performance of developed stock markets outside the United States and Canada and
excludes certain market segments unavailable to U.S. based investors.
The P/E Ratio, or Price-to-Earnings Ratio, is a valuation ratio of a company's
current share price to its per-share earnings. A high P/E means high projected
earnings in the future.
The P/B Ratio, or Price-to-Book Ratio, is used to compare a stock's market value
to its book value. This ratio gives some idea of whether you're paying too much
for what would be left if the company went bankrupt immediately.
Russell 1000(R) Index measures the performance of 1,000 largest companies in the
Russell 3000(R) Index, and represents approximately 92% of the total market
capitalization of the U.S. Market.
Russell 1000(R) Growth Index measures the performance of companies found in the
Russell 1000(R) Index with higher price-to-book ratios and higher forecasted
growth values.
Russell 1000(R) Value Index measures the performance of companies found in the
Russell 1000(R) Index with lower price-to-book ratios and lower forecasted
growth values.
Russell 2000(R) Growth Index measures the performance of the companies in the
Russell 2000(R) Index with higher price-to-value ratios and higher forecasted
growth values.
Russell 2000(R) Value Index measures the performance of the companies in the
Russell 2000(R) Index with lower price-to-book ratios and lower forecasted
growth values.
Russell 3000(R) Value Index measures the performance of companies in the Russell
3000(R) Index with lower price-to-book ratios and lower forecasted growth
values.
30
Glossary of Terms
Russell Microcap(R) Index measures the performance of 1000 of the smallest
securities in the Russell 2000(R) Index based on a combination of their market
cap and current index membership.
Russell Microcap(R) Value Index measures the performance of those Russell
Microcap(R) Index companies with lower price-to-book ratios and lower forecasted
growth values.
Russell Midcap(R) Growth Index measures the performance of those securities
found in the Russell Midcap(R) Index with higher price-to-book ratios and higher
forecasted growth values.
Russell Midcap(R) Value Index measures the performance of those Russell
Midcap(R) Index companies with lower price-to-book ratios and lower forecasted
growth values.
Standard & Poor's index ranges from "AAA" to "D" with eight intermediate
categories.
Standard & Poor's 500 Index ("S&P 500" Index) is comprised of 500 selected
common stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. stock market as a whole.
The above indices are unmanaged and do not reflect the deduction of fees
associated with a mutual fund such as investment management and fund accounting
fees. However, the Lipper Averages and the Funds' 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.
The Fifth Third LifeModel Target Neutral Asset Class Blended Indices are
hypothetical unmanaged indices comprised of a percentage of the Dow Jones
Wilshire 5000 lndex and Lehman Brothers Intermediate Government/Credit Bond
Index. The Blended lndex was created by Fifth Third Asset Management, Inc. The
Fund will not necessarily maintain a similar weighting at all times but will
invest within a range of stock, bond, and money market funds as described in the
prospectus. Below is a table which indicates the percentage breakdown for each
Fund.
Dow Jones Lehman Brothers Intermediate
Wilshire 5000 Index Government/Credit Bond Index
Fifth Third LifeModel Aggressive(SM) 90% 10%
- ----------------------------------------------------------------------------------------------------
Fifth Third LifeModel Moderately Aggressive(SM) 70% 30%
- ----------------------------------------------------------------------------------------------------
Fifth Third LifeModel Moderate(SM) 50% 50%
- ----------------------------------------------------------------------------------------------------
Fifth Third LifeModel Moderately Conservative(SM) 40% 60%
- ----------------------------------------------------------------------------------------------------
Fifth Third LifeModel Conservative(SM) 20% 80%
- ----------------------------------------------------------------------------------------------------
31
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32
Small Cap Growth
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (96.4%)
Biotechnology * (2.1%)
BioMarin Pharmaceuticals, Inc. 50,800 $ 1,883
------------
Building Products * (0.4%)
Dayton Superior Corp. 161,100 391
------------
Commercial Banks (1.1%)
East West Bancorp, Inc. 40,000 962
------------
Commercial Services & Supplies * (5.2%)
Geo Group, Inc. (The) 53,200 1,272
Huron Consulting Group, Inc. 29,000 2,083
Kenexa Corp. 39,000 693
Mobile Mini, Inc. 47,100 716
------------
4,764
------------
Communications Equipment * (2.5%)
Netgear, Inc. 49,200 1,312
Nice Systems, Ltd. ADR 30,100 921
------------
2,233
------------
Construction Materials (1.3%)
Texas Industries, Inc. 21,500 1,218
------------
Consumer Finance * (2.0%)
Cardronics, Inc. 140,000 1,096
First Cash Financial Services, Inc. 72,500 726
------------
1,822
------------
Data Processing/Management * (0.8%)
Commvault Systems, Inc. 39,000 726
------------
Distributors * (2.6%)
DXP Enterprises, Inc. 27,800 1,014
LKQ Corp. 76,400 1,367
------------
2,381
------------
Diversified Financial Services * (0.8%)
NewStar Financial, Inc. 85,100 740
------------
Diversified Telecommunication Services * (1.3%)
Time Warner Telecom, Inc., Class A 67,000 1,171
------------
Electrical Components & Equipment (6.7%)
AZZ, Inc. * 58,500 1,975
Belden, Inc. 35,500 1,502
Energy Conversion Devices, Inc. * 46,700 1,078
Polypore International, Inc. * 82,369 1,530
------------
6,085
------------
Electronic Equipment & Instruments (2.5%)
Daktronics, Inc. 55,200 1,131
IPG Photonics Corp. * 61,100 1,094
------------
2,225
------------
Energy Equipment & Service * (6.6%)
Complete Production Services, Inc. 59,300 943
Core Laboratories NV 15,000 1,691
Superior Energy Services 45,300 1,816
Continued
Shares Value
------------ ------------
Common Stocks, continued
Energy Equipment & Service *, continued
T-3 Energy Services, Inc. 33,900 $ 1,525
------------
5,975
------------
Food & Staples Retailing * (0.8%)
United Natural Foods, Inc. 31,100 746
------------
Healthcare Equipment & Supplies * (5.1%)
Hologic, Inc. 32,875 2,116
Masimo Corp. 34,231 1,222
NuVasive, Inc. 33,500 1,320
------------
4,658
------------
Healthcare Providers & Services * (12.2%)
AMN Healthcare Services, Inc. 64,370 1,005
Emergency Medical Services Corp.,
Class A 47,682 1,467
HealthExtras, Inc. 49,800 1,377
inVentiv Health, Inc. 48,100 1,582
MWI Veterinary Supply, Inc. 31,350 1,199
Providence Service Corp. (The) 57,100 1,686
Psychiatric Solutions, Inc. 41,000 1,237
Sun Healthcare Group, Inc. 89,000 1,534
------------
11,087
------------
Healthcare Technology * (3.3%)
Omnicell, Inc. 64,000 1,605
Phase Forward, Inc. 81,520 1,406
------------
3,011
------------
Hotels Restaurants & Leisure * (3.3%)
Bally Technologies, Inc. 25,500 1,215
Jack in the Box, Inc. 42,200 1,233
Morton's Restaurant Group, Inc. 78,000 572
------------
3,020
------------
Insurance (1.2%)
Zenith National Insurance Corp. 27,000 1,075
------------
Internet Software & Services * (3.4%)
comScore, Inc. 36,500 977
Equinix, Inc. 14,800 1,118
Vocus, Inc. 33,500 986
------------
3,081
------------
Life Sciences Tools & Services * (3.6%)
Icon PLC ADR 27,600 1,730
Varian, Inc. 28,316 1,536
------------
3,266
------------
Machinery (1.3%)
Bucyrus International, Inc., Class A 12,600 1,168
------------
Marine * (1.6%)
Ultrapetrol Bahamas, Ltd. 89,800 1,441
------------
Media * (3.2%)
Dolan Media Co. 48,158 1,091
RRSat Global Communications
Network, Ltd. 104,400 1,827
------------
2,918
------------
Continued
33
Small Cap Growth
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Oil & Gas (3.0%)
Carrizo Oil & Gas, Inc. * 23,000 $ 1,120
Penn Virginia Corp. 38,400 1,636
------------
2,756
------------
Personal Products * (0.6%)
Physicians Formula Holdings, Inc. 59,242 562
------------
REIT - Diversified (1.6%)
Digital Realty Trust, Inc. 41,000 1,465
------------
Semiconductors & Semiconductor
Equipment * (3.3%)
Atheros Communications, Inc. 48,300 1,319
Cavium Networks, Inc. 22,000 421
Formfactor, Inc. 25,600 620
Netlogic Microsystems, Inc. 25,000 650
------------
3,010
------------
Software * (5.2%)
Concur Technologies, Inc. 15,569 546
Nuance Communications, Inc. 86,900 1,381
PROS Holdings, Inc. 99,663 1,530
Ultimate Software Group, Inc. 47,700 1,290
------------
4,747
------------
Specialty Retail (2.8%)
Aeropostale, Inc. * 58,850 1,658
Stage Stores, Inc. 74,100 887
------------
2,545
------------
Textiles Apparel & Luxury Goods * (3.8%)
Iconix Brand Group, Inc. 90,850 1,889
Skechers U.S.A., Inc., Class A 48,700 975
Volcom, Inc. 31,300 631
------------
3,495
------------
Transportation (1.2%)
Aegean Marine Petroleum, Inc. 33,500 1,095
------------
Total Common Stocks 87,722
------------
Total Investments (Cost $81,502) - 96.4% $ 87,722
Other assets in excess of liabilities - 3.6% 3,312
------------
NET ASSETS - 100.0% $ 91,034
============
Notes to Schedule of Investments
* Non-income producing security.
The following abbreviation is used in the Schedule of Investments:
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
Mid Cap Growth
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (99.6%)
Aerospace & Defense (3.7%)
Precision Castparts Corp. 57,100 $ 6,498
Spirit Aerosystems Holdings, Inc.,
Class A * 175,000 4,834
------------
11,332
------------
Capital Markets (3.0%)
Affiliated Managers Group, Inc. * 48,600 4,778
T Rowe Price Group, Inc. 92,600 4,685
------------
9,463
------------
Chemicals (1.6%)
FMC Corp. 92,400 4,912
------------
Commercial Services & Supplies (5.5%)
Corrections Corp. of America * 223,800 5,940
Manpower, Inc. 72,800 4,096
Stericycle, Inc. * 120,400 7,135
------------
17,171
------------
Communications Equipment * (0.2%)
Ciena Corp. 18,000 488
------------
Computers & Peripherals * (1.5%)
Brocade Communications Systems, Inc. 220,000 1,516
Network Appliance, Inc. 132,000 3,065
------------
4,581
------------
Construction Materials (1.8%)
Martin Marietta Materials, Inc. 44,800 5,498
------------
Containers & Packaging * (1.5%)
Owens-Illinois, Inc. 94,600 4,787
------------
Diversified Consumer Services * (1.9%)
Apollo Group, Inc., Class A 72,700 5,797
------------
Diversified Telecommunication
Services * (1.5%)
Time Warner Telecom, Inc., Class A 265,693 4,644
------------
Energy Equipment & Services * (7.5%)
Exterran Holdings, Inc. 55,000 3,588
National Oilwell Varco, Inc. 97,000 5,842
Oceaneering International, Inc. 70,000 4,031
Superior Energy Services 125,800 5,043
Transocean, Inc. 40,006 4,905
------------
23,409
------------
Healthcare Equipment & Supplies * (5.3%)
Gen-Probe, Inc. 71,776 4,102
Hologic, Inc. 108,000 6,951
Varian Medical Systems, Inc. 104,401 5,428
------------
16,481
------------
Continued
34
Mid Cap Growth
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Healthcare Providers & Services * (7.4%)
DaVita, Inc. 86,700 $ 4,626
Express Scripts, Inc. 70,600 4,765
Pediatrix Medical Group, Inc. 76,900 5,236
Psychiatric Solutions, Inc. 141,900 4,281
VCA Antech, Inc. 107,300 4,148
------------
23,056
------------
Hotels Restaurants & Leisure (5.9%)
Burger King Holdings, Inc. 189,800 5,001
International Game Technology 126,600 5,402
Marriott International, Inc. 131,200 4,718
Scientific Games Corp., Class A * 136,600 3,251
------------
18,372
------------
Industrial * (1.5%)
McDermott International, Inc. 97,500 4,600
------------
Insurance * (1.7%)
ProAssurance Corp. 91,800 5,297
------------
Internet Software & Services * (1.3%)
Akamai Technologies, Inc. 138,500 4,183
------------
IT Services (3.7%)
Cognizant Technology Solutions
Corp., Class A * 87,000 2,427
Mastercard, Inc. 22,700 4,699
Paychex, Inc. 135,000 4,417
------------
11,543
------------
Life Sciences Tools & Services (4.4%)
PerkinElmer, Inc. 182,700 4,547
Pharmaceutical Product
Development, Inc. 101,200 4,388
Qiagen NV * 227,000 4,631
------------
13,566
------------
Machinery (5.1%)
IDEX Corp. 130,700 4,082
ITT Corp. 76,400 4,540
Joy Global, Inc. 112,850 7,115
------------
15,737
------------
Multiline Retail (2.1%)
JC Penney Co., Inc. 59,400 2,816
Nordstrom, Inc. 97,300 3,785
------------
6,601
------------
Oil & Gas (3.6%)
Ultra Petroleum Corp. * 79,500 5,469
XTO Energy, Inc. 111,875 5,811
------------
11,280
------------
Personal Products (1.8%)
Herbalife, Ltd. 140,500 5,575
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Pharmaceuticals (1.4%)
Allergan, Inc. 63,300 $ 4,253
------------
REIT - Diversified (1.1%)
CapitalSource, Inc. 202,200 3,318
------------
Real Estate Management &
Development (1.2%)
Jones Lang LaSalle, Inc. 47,900 3,727
------------
Semiconductors & Semiconductor
Equipment (4.1%)
Intersil Corp., Class A 102,700 2,365
MEMC Electronic Materials, Inc. * 73,500 5,253
Nvidia Corp. * 90,000 2,213
Xilinx, Inc. 139,000 3,040
------------
12,871
------------
Software * (6.8%)
Activision, Inc. 200,879 5,197
Electronic Arts, Inc. 58,096 2,752
Intuit, Inc. 199,100 6,110
McAfee, Inc. 14,100 475
Nuance Communications, Inc. 182,000 2,892
Salesforce.com, Inc. 72,500 3,790
------------
21,216
------------
Specialty Retail (5.1%)
Abercrombie & Fitch Co., Class A 80,300 6,399
Guess?, Inc. 118,400 4,418
Urban Outfitters, Inc. * 172,500 5,002
------------
15,819
------------
Textiles Apparel & Luxury Goods (3.0%)
Coach, Inc. * 112,550 3,607
Phillips-Van Heusen 61,700 2,600
Polo Ralph Lauren Corp. 54,000 3,272
------------
9,479
------------
Trading Companies & Distributors (1.3%)
WESCO International, Inc. * 92,600 3,911
------------
Utilities * (0.7%)
NRG Energy, Inc. 60,000 2,315
------------
Wireless Telecommunication
Services * (1.4%)
American Tower Corp. 115,000 4,316
------------
Total Common Stocks 309,598
------------
Continued
35
Mid Cap Growth
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Investments in Affiliates (a) (2.8%)
Fifth Third Institutional Money
Market Fund 8,666,187 $ 8,666
------------
Total Investments in Affiliates 8,666
------------
Total Investments (Cost $277,422) - 102.4% 318,264
Liabilities in excess of other assets - (2.4)% (7,495)
NET ASSETS - 100.0% $ 310,769
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
Quality Growth
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (99.2%)
Aerospace & Defense (4.1%)
Goodrich Corp. 96,000 $ 6,005
Honeywell International, Inc. 140,000 8,270
United Technologies Corp. 140,000 10,277
------------
24,552
------------
Auto Components (1.7%)
Johnson Controls, Inc. 290,000 10,257
------------
Beverages (3.0%)
Coca-Cola Co. (The) 110,000 6,509
PepsiCo, Inc. 175,000 11,933
------------
18,442
------------
Biotechnology * (2.0%)
Gilead Sciences, Inc. 270,000 12,336
------------
Capital Markets (5.1%)
BlackRock, Inc. 35,000 7,738
Northern Trust Corp. 180,000 13,205
T Rowe Price Group, Inc. 200,000 10,118
------------
31,061
------------
Chemicals (6.4%)
Monsanto Co. 150,000 16,866
Potash Corp. of Saskatchewan 75,000 10,566
Praxair, Inc. 140,000 11,327
------------
38,759
------------
Commercial Services & Supplies * (1.6%)
Stericycle, Inc. 160,000 9,482
------------
Communications Equipment (4.4%)
Cisco Systems, Inc. * 450,000 11,025
Juniper Networks, Inc. * 250,000 6,788
Nokia Corp. Oyj ADR 240,000 8,868
------------
26,681
------------
Computers & Peripherals (8.0%)
Apple, Inc. * 90,000 12,182
Dell, Inc. * 300,000 6,012
EMC Corp. * 510,000 8,094
Hewlett-Packard Co. 225,000 9,844
International Business Machines Corp. 115,000 12,344
------------
48,476
------------
Construction & Engineering (1.1%)
Fluor Corp. 55,000 6,692
------------
Diversified Consumer Services * (1.4%)
Apollo Group, Inc., Class A 110,000 8,771
------------
Diversified Financial Services (1.1%)
CME Group, Inc. 11,000 6,808
------------
Continued
36
Quality Growth
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Diversified Telecommunication
Services (1.1%)
AT&T, Inc. 180,000 $ 6,928
------------
Electric Utilities (1.2%)
FPL Group, Inc. 110,000 7,093
------------
Electrical Components
& Equipment (2.7%)
Emerson Electric Co. 210,000 10,676
Roper Industries, Inc. 100,000 5,592
------------
16,268
------------
Energy Equipment & Services (3.9%)
Cameron International Corp. * 186,000 7,488
Schlumberger, Ltd. 90,000 6,792
Transocean, Inc. * 73,458 9,006
------------
23,286
------------
Food & Staples Retailing (1.1%)
Kroger Co. (The) 270,000 6,872
------------
Food Products (1.8%)
Kellogg Co. 230,000 11,017
------------
Healthcare Equipment & Supplies (5.4%)
Baxter International, Inc. 250,000 15,185
Becton Dickinson & Co. 80,000 6,922
Respironics, Inc. * 160,000 10,482
------------
32,589
------------
Hotels Restaurants & Leisure (4.8%)
Burger King Holdings, Inc. 363,725 9,584
Chipotle Mexican Grill, Inc.,
Class A * 55,000 6,696
McDonald's Corp. 240,000 12,852
------------
29,132
------------
Household Products (3.4%)
Colgate-Palmolive Co. 150,000 11,550
Procter & Gamble Co. 135,000 8,903
------------
20,453
------------
Internet Software & Services * (2.0%)
Google, Inc., Class A 21,000 11,850
------------
Life Sciences Tools & Services * (3.2%)
Thermo Fisher Scientific, Inc. 207,000 10,658
Waters Corp. 150,000 8,618
------------
19,276
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Machinery (4.3%)
Caterpillar, Inc. 105,000 $ 7,470
Danaher Corp. 135,000 10,050
Illinois Tool Works, Inc. 165,000 8,316
------------
25,836
------------
Oil & Gas (6.0%)
Apache Corp. 80,000 7,635
Chevron Corp. 120,000 10,140
Consol Energy, Inc. 115,000 8,395
Devon Energy Corp. 120,000 10,198
------------
36,368
------------
Pharmaceuticals (4.8%)
Abbott Laboratories 170,000 9,571
Johnson & Johnson 165,000 10,438
Merck & Co., Inc. 200,000 9,256
------------
29,265
------------
Semiconductors & Semiconductor
Equipment (2.2%)
Intel Corp. 620,000 13,144
------------
Software (7.0%)
Activision, Inc. * 350,000 9,055
Microsoft Corp. 660,000 21,516
Oracle Corp. * 580,000 11,919
------------
42,490
------------
Specialty Retail (3.1%)
Best Buy Co., Inc. 125,000 6,101
Dick's Sporting Goods, Inc. * 200,000 6,510
GameStop Corp., Class A * 115,000 5,949
------------
18,560
------------
Textiles Apparel & Luxury Goods (1.3%)
Nike, Inc., Class B 130,000 8,029
------------
Total Common Stocks 600,773
------------
Continued
37
Quality Growth
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- -------------
Investments in Affiliates (a) (1.6%)
Fifth Third Institutional Money
Market Fund 9,811,218 $ 9,811
------------
Total Investments in Affiliates 9,811
------------
Total Investments (Cost $519,466) - 100.8% 610,584
Liabilities in excess of other assets - (0.8)% (4,549)
------------
NET ASSETS - 100.0% $ 606,035
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
ADR - American Depositary Receipt
See notes to schedules of investments
and notes to financial statements.
Dividend Growth
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Common Stocks (98.9%)
Aerospace & Defense (5.2%)
General Dynamics Corp. 5,375 $ 454
United Technologies Corp. 9,701 712
------------
1,166
------------
Auto Components (1.1%)
BorgWarner, Inc. 4,800 243
------------
Beverages (5.9%)
Anheuser-Busch Cos., Inc. 3,300 153
Coca-Cola Co. (The) 4,800 284
Diageo PLC ADR 4,100 331
PepsiCo, Inc. 8,300 566
------------
1,334
------------
Biotechnology * (2.4%)
Celgene Corp. 4,999 281
Gilead Sciences, Inc. 5,849 267
------------
548
------------
Capital Markets (5.5%)
Charles Schwab Corp. (The) 13,487 301
Lehman Brothers Holdings, Inc. 4,000 257
Northern Trust Corp. 3,450 253
State Street Corp. 5,300 435
------------
1,246
------------
Chemicals (3.3%)
Ecolab, Inc. 5,849 282
Praxair, Inc. 5,592 453
------------
735
------------
Commercial Banks (5.6%)
BB&T Corp. 7,300 265
US Bancorp 14,197 482
Wells Fargo & Co. 15,276 519
------------
1,266
------------
Communications Equipment (5.1%)
Cisco Systems, Inc. * 18,193 446
Nokia Corp. Oyj ADR 13,000 480
Research In Motion, Ltd. * 2,500 235
------------
1,161
------------
Computers & Peripherals (4.9%)
Apple, Inc. * 2,343 317
EMC Corp. * 17,800 283
Hewlett-Packard Co. 6,050 265
Seagate Technology 12,500 253
------------
1,118
------------
Diversified Financial Services (3.4%)
Bank of America Corp. 13,000 577
JPMorgan Chase & Co. 4,150 197
------------
774
------------
Continued
38
Dividend Growth
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- -------------
Common Stocks, continued
Electric Utilities (1.4%)
Entergy Corp. 2,839 $ 307
------------
Electrical Components &
Equipment (3.7%)
Emerson Electric Co. 12,550 638
Roper Industries, Inc. 3,433 192
------------
830
------------
Energy Equipment & Service * (1.4%)
Weatherford International, Ltd. 5,100 315
------------
Food & Staples Retailing (1.4%)
Costco Wholesale Corp. 2,600 177
Wal-Mart Stores, Inc. 2,586 131
------------
308
------------
Food Products (1.3%)
Kellogg Co. 6,050 290
------------
Healthcare Equipment &
Supplies (5.3%)
Becton Dickinson & Co. 5,250 454
Dentsply International, Inc. 8,250 341
Stryker Corp. 6,000 402
------------
1,197
------------
Hotels Restaurants & Leisure (1.2%)
McDonald's Corp. 4,860 260
------------
Household Products (3.0%)
Procter & Gamble Co. 10,344 682
------------
Industrial Conglomerates (3.1%)
3M Co. 1,650 131
General Electric Co. 16,000 567
------------
698
------------
Insurance (4.9%)
American International Group, Inc. 8,300 458
MetLife, Inc. 5,600 330
Prudential Financial, Inc. 3,803 321
------------
1,109
------------
Media (1.1%)
Meredith Corp. 5,260 247
------------
Multiline Retail (1.3%)
Target Corp. 5,300 295
------------
Oil & Gas (8.8%)
Apache Corp. 2,350 224
Chevron Corp. 4,000 338
Exxon Mobil Corp. 11,100 959
XTO Energy, Inc. 9,000 468
------------
1,989
------------
Continued
Shares Value
----------- ------------
Common Stocks, continued
Pharmaceuticals (6.0%)
Abbott Laboratories 7,705 $ 434
Allergan, Inc. 4,800 322
Johnson & Johnson 5,350 339
Novartis AG ADR 4,953 251
------------
1,346
------------
Semiconductors & Semiconductor
Equipment (5.2%)
Intel Corp. 16,104 342
Intersil Corp., Class A 12,000 276
Microchip Technology, Inc. 8,235 263
Texas Instruments, Inc. 9,381 290
------------
1,171
------------
Software (1.9%)
Microsoft Corp. 12,980 423
------------
Textiles Apparel & Luxury Goods (2.5%)
Nike, Inc., Class B 3,833 237
VF Corp. 4,350 336
------------
573
------------
Tobacco (3.0%)
Altria Group, Inc. 8,922 676
------------
Total Common Stocks 22,307
------------
Investments in Affiliates (a) (1.1%)
Fifth Third Institutional Money
Market Fund 251,464 251
------------
Total Investments in Affiliates 251
------------
Total Investments (Cost $20,267) - 100.0% 22,558
Other assets in excess of liabilities - 0.0% 7
------------
NET ASSETS - 100.0% $ 22,565
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
ADR - American Depositary Receipt
See notes to schedules of investments
and notes to financial statements.
39
Micro Cap Value
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Common Stocks (97.4%)
Aerospace & Defense * (3.7%)
Ducommun, Inc. 18,560 $ 586
LMI Aerospace, Inc. 28,003 565
MTC Technologies, Inc. 24,409 576
------------
1,727
------------
Biotechnology * (1.1%)
Emergent Biosolutions, Inc. 70,558 526
------------
Capital Markets (2.8%)
Gladstone Capital Corp. 28,111 465
MVC Capital, Inc. 11,886 182
Penson Worldwide, Inc. * 17,471 169
Sanders Morris Harris Group, Inc. 51,669 495
------------
1,311
------------
Chemicals (1.9%)
Quaker Chemical Corp. 22,342 447
Stepan Co. 14,808 443
------------
890
------------
Commercial Banks (10.9%)
AmericanWest Bancorp 22,362 272
Bank of Florida Corp. * 22,671 226
Center Bancorp, Inc. 33,662 365
First Merchants Corp. 21,590 583
First State Bancorporation 34,331 431
Irwin Financial Corp. 42,582 489
MainSource Financial Group, Inc. 31,358 485
Northrim BanCorp, Inc. 16,670 347
Renasant Corp. 23,520 493
Rurban Financial Corp. 11,506 133
Simmons First National Corp.,
Class A 20,531 582
Southcoast Financial Corp. * 12,382 168
Washington Trust Bancorp, Inc. 19,035 474
------------
5,048
------------
Commercial Services & Supplies (4.4%)
Barrett Business Services, Inc. 29,805 534
CBIZ, Inc. * 52,125 491
ICT Group, Inc. * 32,516 287
Schawk, Inc. 28,863 414
Standard Register Co. (The) 32,396 315
------------
2,041
------------
Communications Equipment * (2.3%)
Radyne Corp. 62,865 544
Symmetricom, Inc. 123,130 538
------------
1,082
------------
Computers & Peripherals * (1.9%)
ActivIdentity Corp. 67,165 225
Dot Hill Systems Corp. 168,906 660
------------
885
------------
Construction & Engineering * (0.5%)
Northwest Pipe Co. 5,131 213
------------
Continued
Shares Value
----------- -------------
Common Stocks, continued
Construction Materials * (0.9%)
Headwaters, Inc. 36,310 $ 409
------------
Distributors * (0.6%)
Audiovox Corp., Class A 29,368 301
------------
Diversified Financial Services (1.2%)
NGP Capital Resources Co. 34,862 562
------------
Diversified Telecommunication
Services (2.1%)
D&E Communications, Inc. 24,442 272
Gilat Satellite Networks, Ltd. * 34,969 381
Iowa Telecommunications Services, Inc. 21,900 338
------------
991
------------
Electronic Equipment &
Instruments (7.1%)
Agilysys, Inc. 38,404 585
CTS Corp. 24,016 255
GSI Group, Inc. * 51,987 478
OSI Systems, Inc. * 21,362 498
PAR Technology Corp. * 69,005 541
TTM Technologies, Inc. * 52,244 531
Zygo Corp. * 34,852 409
------------
3,297
------------
Energy Equipment & Service * (1.8%)
Bronco Drilling Co., Inc. 29,163 457
Trico Marine Services, Inc. 12,183 391
------------
848
------------
Food & Staples Retailing (0.8%)
Nash Finch Co. 10,810 386
------------
Food Products (2.5%)
B&G Foods, Inc., Class A 38,583 380
Monterey Gourmet Foods, Inc. * 76,466 216
Overhill Farms, Inc. * 126,368 330
Tasty Baking Co. 28,329 210
------------
1,136
------------
Gas-Distribution (0.9%)
Chesapeake Utilities Corp. 14,045 423
------------
Healthcare Equipment & Supplies (3.9%)
Datascope Corp. 12,133 393
Greatbatch, Inc. * 16,300 368
HealthTronics, Inc. * 84,000 341
Medical Action Industries, Inc. * 16,393 274
National Dentex Corp. * 33,001 449
------------
1,825
------------
Healthcare Providers & Services * (3.0%)
American Dental Partners, Inc. 27,054 239
Cross Country Healthcare, Inc. 34,300 433
Hooper Holmes, Inc. 101,158 146
Res-Care, Inc. 25,450 569
------------
1,387
------------
Continued
40
Micro Cap Value
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- -------------
Common Stocks, continued
Hotels Restaurants & Leisure (2.7%)
Benihana, Inc. * 6,980 $ 77
Benihana, Inc., Class A * 17,800 194
Bluegreen Corp. * 66,270 565
Frisch's Restaurants, Inc. 8,326 170
Steak N Shake Co. (The) * 28,859 252
------------
1,258
------------
Household Durables (0.5%)
La-Z-Boy, Inc. 31,405 239
------------
Insurance (5.0%)
AmCOMP, Inc. * 5,717 69
Amerisafe, Inc. * 20,571 283
Crawford & Co., Class B * 65,616 328
FPIC Insurance Group, Inc. * 7,840 330
National Atlantic Holdings Corp. * 64,217 321
North Pointe Holdings Corp. * 12,020 186
Procentury Corp. 28,053 412
SeaBright Insurance Holdings, Inc. * 26,312 387
------------
2,316
------------
Internet Software & Services * (0.8%)
Vignette Corp. 26,084 367
------------
IT Services * (1.7%)
Ciber, Inc. 63,737 307
Ness Technologies, Inc. 51,044 469
------------
776
------------
Machinery * (1.9%)
Flanders Corp. 87,564 483
Trimas Corp. 55,892 387
------------
870
------------
Marine (1.4%)
Stealthgas, Inc. 45,703 643
------------
Metals & Mining (1.0%)
NN, Inc. 53,145 450
------------
Multiline Retail (0.7%)
Tuesday Morning Corp. 53,521 323
------------
Oil & Gas * (2.3%)
Callon Petroleum Co. 43,434 669
Edge Petroleum Corp. 62,578 414
------------
1,083
------------
Paper & Forest Products (1.2%)
Schweitzer-Mauduit International, Inc. 23,183 553
------------
REIT - Hotels (2.0%)
Hersha Hospitality Trust 70,311 632
MHI Hospitality Corp. 36,450 292
------------
924
------------
REIT - Warehouse/Industry (0.9%)
Monmouth 51,303 414
------------
REIT - Storage (0.6%)
U-Store-It Trust 28,600 272
------------
Road & Rail * (2.2%)
Celadon Group, Inc. 35,750 341
Marten Transport, Ltd. 25,925 441
Saia, Inc. 16,900 238
------------
1,020
------------
Continued
Shares Value
----------- -------------
Common Stocks, continued
Semiconductors & Semiconductor
Equipment * (4.9%)
IXYS Corp. 58,828 $ 442
Nanometrics, Inc. 39,586 238
Rudolph Technologies, Inc. 33,814 346
Semitool, Inc. 73,757 648
Ultratech, Inc. 28,804 274
White Electronic Designs Corp. 74,981 338
------------
2,286
------------
Software * (1.8%)
Digimarc Corp. 20,718 171
Secure Computing Corp. 72,460 649
------------
820
------------
Specialty Retail (4.6%)
Charlotte Russe Holdings, Inc. * 27,132 489
Jo-Ann Stores, Inc. * 34,995 443
Lithia Motors, Inc., Class A 18,207 278
Monro Muffler, Inc. 28,908 535
Stein Mart, Inc. 60,204 385
------------
2,130
------------
Textiles Apparel & Luxury Goods * (0.8%)
Hartmarx Corp. 140,456 379
------------
Thrifts & Mortgage Finance (5.2%)
American Bancorp of New Jersey 39,922 412
B of I Holding, Inc. * 47,292 337
Benjamin Franklin Bancorp, Inc. 24,771 331
Berkshire Hills Bancorp, Inc. 19,570 465
Citizens Community Bancorp, Inc. 24,289 212
First Clover Leaf Financial Corp. 25,597 261
United Western Bancorp, Inc. 19,857 382
------------
2,400
------------
Trading Companies & Distributors (0.9%)
Aceto Corp. 58,242 393
------------
Total Common Stocks 45,204
------------
Investments in Affiliates (a) (2.1%)
Fifth Third Institutional Money
Market Fund 958,935 959
------------
Total Investments in Affiliates 959
------------
Total Investments (Cost $49,260) - 99.5% 46,163
Other assets in excess of liabilities - 0.5% 253
------------
NET ASSETS - 100.0% $ 46,416
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trusts
See notes to schedules of investments
and notes to financial statements.
41
Small Cap Value
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (97.1%)
Beverages (0.2%)
PepsiAmericas, Inc. 7,100 $ 175
------------
Building Products * (1.1%)
NCI Building Systems, Inc. 31,825 915
------------
Capital Markets (1.1%)
Gladstone Capital Corp. 55,875 925
------------
Chemicals (3.6%)
Ferro Corp. 81,325 1,438
PolyOne Corp. * 183,125 1,128
Tronox, Inc., Class A 65,900 481
------------
3,047
------------
Commercial Banks (13.1%)
Community Bank System, Inc. 84,075 1,835
Irwin Financial Corp. 122,775 1,411
MainSource Financial Group, Inc. 77,662 1,201
Old National Bancorp 106,575 1,790
Renasant Corp. 51,125 1,072
UMB Financial Corp. 43,350 1,826
United Bankshares, Inc. 64,631 2,079
------------
11,214
------------
Commercial Services & Supplies (1.5%)
Schawk, Inc. 91,950 1,320
------------
Communications Equipment * (4.3%)
ADC Telecommunications, Inc. 90,375 1,337
Extreme Networks 435,175 1,501
MasTec, Inc. 103,922 868
------------
3,706
------------
Construction Materials * (1.2%)
Headwaters, Inc. 89,550 1,009
------------
Diversified Consumer Services (1.8%)
Stewart Enterprises, Inc., Class A 215,150 1,532
------------
Diversified Telecommunication
Services (2.3%)
Iowa Telecommunications Services, Inc. 126,925 1,957
------------
Electric Utilities (3.4%)
Cleco Corp. 48,875 1,264
Westar Energy, Inc. 67,825 1,652
------------
2,916
------------
Electrical Components &
Equipment * (1.2%)
EnerSys 46,475 1,071
------------
Electronic Equipment
& Instruments (2.8%)
Agilysys, Inc. 91,600 1,394
CTS Corp. 93,050 986
------------
2,380
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Energy Equipment & Service * (1.6%)
Oil States International, Inc. 40,100 $ 1,406
------------
Food & Staples Retailing (4.0%)
Casey's General Stores, Inc. 70,650 1,837
Performance Food Group Co. * 50,250 1,589
------------
3,426
------------
Healthcare Providers & Services * (3.8%)
Kindred Healthcare, Inc. 67,450 1,858
Molina Healthcare, Inc. 41,400 1,412
------------
3,270
------------
Hotels Restaurants & Leisure * (2.3%)
Bluegreen Corp. 129,600 1,104
Steak N Shake Co. (The) 99,800 872
------------
1,976
------------
Household Durables (1.3%)
La-Z-Boy, Inc. 150,350 1,146
------------
Insurance (4.4%)
Endurance Specialty Holdings, Ltd. 40,375 1,636
Platinum Underwriters Holdings, Ltd. 62,550 2,111
------------
3,747
------------
IT Services * (0.5%)
Convergys Corp. 29,375 456
------------
Machinery (5.5%)
Albany International Corp., Class A 48,225 1,688
EnPro Industries, Inc. * 57,850 1,736
Trinity Industries, Inc. 45,850 1,298
------------
4,722
------------
Marine (1.2%)
Alexander & Baldwin, Inc. 21,800 995
------------
Metals & Mining * (2.3%)
Coeur d'Alene Mines Corp. 435,825 1,992
------------
Multiline Retail (0.7%)
Tuesday Morning Corp. 104,800 633
------------
Multi-Utilities (2.3%)
Vectren Corp. 73,400 2,015
------------
Oil & Gas (5.8%)
Massey Energy Co. 33,175 1,233
Overseas Shipholding Group 16,675 1,088
Rosetta Resources, Inc. * 71,743 1,258
Tsakos Energy Navigation, Ltd. 40,275 1,387
------------
4,966
------------
Paper & Forest Products (2.4%)
Schweitzer-Mauduit International, Inc. 88,000 2,098
------------
Continued
42
Small Cap Value
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Pharmaceuticals (3.0%)
Biovail Corp. 92,400 $ 1,266
Par Pharmaceutical Cos., Inc. * 66,995 1,285
------------
2,551
------------
REIT - Hotels (1.5%)
Ashford Hospitality Trust, Inc. 203,050 1,269
------------
REIT - Storage (1.4%)
U-Store-It Trust 132,325 1,260
------------
Road & Rail (3.3%)
Marten Transport, Ltd. * 86,550 1,472
Werner Enterprises, Inc. 67,750 1,380
------------
2,852
------------
Semiconductors & Semiconductor
Equipment * (3.7%)
Cabot Microelectronics Corp. 40,475 1,399
Semitool, Inc. 133,675 1,174
Teradyne, Inc. 53,025 582
------------
3,155
------------
Software * (1.9%)
Sybase, Inc. 58,850 1,661
------------
Specialty Retail (2.4%)
Group 1 Automotive, Inc. 30,400 804
Jo-Ann Stores, Inc. * 65,025 824
Stein Mart, Inc. 71,525 457
------------
2,085
------------
Textiles Apparel & Luxury Goods (1.2%)
Kellwood Co. 50,250 1,004
------------
Thrifts & Mortgage Finance (1.8%)
NewAlliance Bancshares, Inc. 125,225 1,540
------------
Trading Companies
& Distributors * (1.2%)
United Rentals, Inc. 55,675 1,016
------------
Total Common Stocks 83,408
------------
Investments in Affiliates (a)(1.3%)
Fifth Third Institutional Money
Market Fund 1,146,611 1,146
------------
Total Investments in Affiliates 1,146
------------
Total Investments (Cost $88,842) - 98.4% 84,554
Other assets in excess of liabilities - 1.6% 1,363
------------
NET ASSETS - 100.0% $ 85,917
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
All Cap Value
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (96.8%)
Aerospace & Defense (3.9%)
AAR Corp. * 35,310 $ 1,040
General Dynamics Corp. 35,313 2,983
Honeywell International, Inc. 70,626 4,172
United Technologies Corp. 29,427 2,160
------------
10,355
------------
Auto Components (0.3%)
Autoliv, Inc. 17,654 882
------------
Beverages (1.8%)
Coca-Cola Enterprises, Inc. 79,450 1,833
Molson Coors Brewing Co., Class B 64,740 2,892
------------
4,725
------------
Biotechnology * (1.4%)
Amgen, Inc. 80,040 3,729
------------
Capital Markets (5.6%)
Bank of New York Mellon Corp. (The) 152,686 7,120
Goldman Sachs Group, Inc. (The) 29,429 5,908
Legg Mason, Inc. 29,425 2,119
------------
15,147
------------
Chemicals (3.1%)
Dow Chemical Co. (The) 70,626 2,730
E.I. du Pont de Nemours & Co. 70,626 3,191
Lubrizol Corp. 47,083 2,477
------------
8,398
------------
Commercial Banks (5.6%)
Comerica, Inc. 47,081 2,054
Marshall & Ilsley Corp. 85,340 2,381
National City Corp. 180,091 3,204
Old National Bancorp 58,855 989
SunTrust Banks, Inc. 35,313 2,435
United Bankshares, Inc. 30,605 984
US Bancorp 88,280 2,997
------------
15,044
------------
Commercial Services & Supplies (1.4%)
ICT Group, Inc. * 50,025 441
Manpower, Inc. 23,540 1,325
Pitney Bowes, Inc. 26,486 972
Standard Register Co. (The) 117,706 1,144
------------
3,882
------------
Communications Equipment (0.9%)
Harris Corp. 26,483 1,448
Symmetricom, Inc. * 235,414 1,029
------------
2,477
------------
Computers & Peripherals (3.0%)
Hewlett-Packard Co. 35,313 1,545
International Business Machines Corp. 37,080 3,980
SanDisk Corp. * 48,260 1,228
Seagate Technology 58,855 1,193
------------
7,946
------------
Continued
43
All Cap Value
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Consumer Finance (0.7%)
Discover Financial Services 102,995 $ 1,802
------------
Diversified Financial Services (8.0%)
Bank of America Corp. 164,791 7,308
Citigroup, Inc. 223,645 6,311
JPMorgan Chase & Co. 166,553 7,920
------------
21,539
------------
Diversified Telecommunication
Services (4.6%)
AT&T, Inc. 88,280 3,398
Verizon Communications, Inc. 176,560 6,857
Windstream Corp. 180,500 2,096
------------
12,351
------------
Electric Utilities (3.7%)
American Electric Power Co., Inc. 58,853 2,521
Duke Energy Corp. 64,740 1,208
Edison International 44,142 2,302
FPL Group, Inc. 29,427 1,897
Pepco Holdings, Inc. 82,394 2,098
------------
10,026
------------
Electronic Equipment
& Instruments * (0.4%)
Avnet, Inc. 14,712 524
Vishay Intertechnology, Inc. 58,853 617
------------
1,141
------------
Energy Equipment & Service (2.0%)
Nabors Industries, Ltd. * 114,175 3,108
Tidewater, Inc. 41,199 2,182
------------
5,290
------------
Food & Staples Retailing (2.2%)
Safeway, Inc. 102,996 3,192
SUPERVALU, Inc. 88,280 2,654
------------
5,846
------------
Food Products (3.1%)
ConAgra Foods, Inc. 108,877 2,344
Kraft Foods, Inc., Class A 119,474 3,496
Tyson Foods, Inc., Class A 176,560 2,516
------------
8,356
------------
Healthcare Providers & Services (2.7%)
Laboratory Corp. of America Holdings * 26,483 1,956
Lincare Holdings, Inc. * 17,654 590
Omnicare, Inc. 22,070 489
UnitedHealth Group, Inc. 84,160 4,279
------------
7,314
------------
Hotels Restaurants & Leisure (2.0%)
Bob Evans Farms, Inc. 50,024 1,488
Carnival Corp. 42,965 1,911
Darden Restaurants, Inc. 68,860 1,950
------------
5,349
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Household Durables (2.4%)
Snap-On, Inc. 26,484 $ 1,301
Stanley Works (The) 44,142 2,267
Tupperware Brands Corp. 76,510 2,831
------------
6,399
------------
Industrial Conglomerates (3.1%)
3M Co. 44,142 3,516
General Electric Co. 138,893 4,918
------------
8,434
------------
Insurance (7.0%)
Allstate Corp. (The) 52,967 2,610
American International Group, Inc. 114,766 6,331
Hartford Financial Services Group, Inc. 58,851 4,753
MetLife, Inc. 52,967 3,123
Travelers Cos., Inc. (The) 41,195 1,982
------------
18,799
------------
IT Services * (0.7%)
Computer Sciences Corp. 42,374 1,793
------------
Leisure Equipment & Products (0.5%)
Mattel, Inc. 64,740 1,360
------------
Machinery (2.9%)
Caterpillar, Inc. 41,198 2,931
Dover Corp. 23,540 950
Joy Global, Inc. 23,540 1,484
Pall Corp. 67,679 2,497
------------
7,862
------------
Media (1.2%)
New York Times Co. (The), Class A 117,705 1,971
Time Warner, Inc. 87,105 1,371
------------
3,342
------------
Metals & Mining (1.1%)
Alcoa, Inc. 88,280 2,922
------------
Multi-Utilities (0.4%)
NiSource, Inc. 52,967 1,006
------------
Oil & Gas (11.7%)
Anadarko Petroleum Corp. 42,377 2,483
Chevron Corp. 58,853 4,973
ConocoPhillips 79,450 6,382
Edge Petroleum Corp. * 34,605 229
Exxon Mobil Corp. 91,223 7,882
Marathon Oil Corp. 129,480 6,066
Spectra Energy Corp. 32,370 739
Sunoco, Inc. 44,250 2,752
------------
31,506
------------
Continued
44
All Cap Value
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Pharmaceuticals (3.5%)
Johnson & Johnson 44,142 $ 2,792
Pfizer, Inc. 205,986 4,818
Wyeth 47,085 1,874
------------
9,484
------------
REITS - Diversified (0.5%)
Duke Realty Corp. 58,855 1,391
------------
Road & Rail (1.3%)
CSX Corp. 17,655 856
Union Pacific Corp. 11,769 1,471
YRC Worldwide, Inc. * 58,855 1,078
------------
3,405
------------
Semiconductors & Semiconductor
Equipment (2.5%)
Applied Materials, Inc. 176,560 3,164
Cabot Microelectronics Corp. * 51,789 1,791
International Rectifier Corp. * 62,975 1,752
------------
6,707
------------
Textiles Apparel & Luxury Goods (0.5%)
Jones Apparel Group, Inc. 73,565 1,236
------------
Thrifts & Mortgage Finance (0.8%)
New York Community Bancorp, Inc. 117,706 2,184
------------
Tobacco (0.3%)
UST, Inc. 14,711 764
------------
Total Common Stocks 260,193
------------
Investment in Affiliates (a) (3.4%)
Fifth Third Institutional Money
Market Fund 9,245,389 9,245
------------
Total Investments in Affiliates 9,245
------------
Total Investments (Cost $231,167) - 100.2% 269,438
Liabilities in excess of other assets - (0.2)% (562)
------------
NET ASSETS - 100.0% $ 268,876
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
Disciplined Large Cap Value
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (96.7%)
Aerospace & Defense (2.2%)
Northrop Grumman Corp. 75,350 $ 5,980
United Technologies Corp. 93,567 6,869
------------
12,849
------------
Beverages (1.2%)
Anheuser-Busch Cos., Inc. 149,707 6,964
------------
Biotechnology * (1.4%)
Amgen, Inc. 172,163 8,021
------------
Capital Markets (1.3%)
Morgan Stanley 149,707 7,400
------------
Chemicals (2.5%)
Dow Chemical Co. (The) 290,057 11,214
E.I. du Pont de Nemours & Co. 75,350 3,404
------------
14,618
------------
Commercial Banks (3.2%)
Marshall & Ilsley Corp. 150,699 4,205
National City Corp. 226,049 4,021
SunTrust Banks, Inc. 149,707 10,322
------------
18,548
------------
Commercial Services & Supplies (2.8%)
Pitney Bowes, Inc. 233,917 8,585
RR Donnelley & Sons Co. 224,560 7,835
------------
16,420
------------
Computers & Peripherals (2.8%)
International Business Machines Corp. 82,339 8,838
Seagate Technology 374,267 7,587
------------
16,425
------------
Consumer Finance (0.6%)
Discover Financial Services 207,211 3,626
------------
Diversified Financial Services (10.0%)
Bank of America Corp. 533,330 23,653
Citigroup, Inc. 421,050 11,882
JPMorgan Chase & Co. 477,938 22,726
------------
58,261
------------
Diversified Telecommunication
Services (6.5%)
AT&T, Inc. 523,973 20,168
Verizon Communications, Inc. 191,624 7,442
Windstream Corp. 916,953 10,646
------------
38,256
------------
Electric Utilities (2.4%)
Edison International 127,251 6,637
FPL Group, Inc. 119,765 7,723
------------
14,360
------------
Energy Equipment & Service (1.6%)
Halliburton Co. 293,051 9,721
------------
Continued
45
Disciplined Large Cap Value
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ -------------
Common Stocks, continued
Food Products (3.1%)
ConAgra Foods, Inc. 169,537 $ 3,650
Kraft Foods, Inc., Class A 496,277 14,521
------------
18,171
------------
Healthcare Providers & Services (2.2%)
UnitedHealth Group, Inc. 254,501 12,939
------------
Hotels Restaurants & Leisure (1.8%)
Carnival Corp. 112,280 4,995
Darden Restaurants, Inc. 187,133 5,300
------------
10,295
------------
Household Durables (1.5%)
Black & Decker Corp. 56,140 4,072
Fortune Brands, Inc. 69,239 4,841
------------
8,913
------------
Industrial Conglomerates (4.1%)
3M Co. 93,567 7,453
General Electric Co. 467,833 16,566
------------
24,019
------------
Insurance (10.1%)
Allstate Corp. (The) 177,777 8,759
American International Group, Inc. 247,016 13,625
Hartford Financial Services Group, Inc. 130,993 10,580
MetLife, Inc. 327,483 19,312
Travelers Cos., Inc. (The) 140,350 6,751
------------
59,027
------------
IT Services * (2.1%)
Computer Sciences Corp. 112,280 4,752
Fiserv, Inc. 149,707 7,690
------------
12,442
------------
Leisure Equipment & Products (1.3%)
Mattel, Inc. 357,911 7,520
------------
Machinery (0.9%)
Caterpillar, Inc. 74,853 5,325
------------
Media (2.1%)
Time Warner, Inc. 767,246 12,076
------------
Metals & Mining (1.1%)
Alcoa, Inc. 187,133 6,194
------------
Oil & Gas (13.6%)
Apache Corp. 89,824 8,573
Chevron Corp. 224,560 18,975
ConocoPhillips 244,770 19,660
Exxon Mobil Corp. 149,707 12,935
Marathon Oil Corp. 187,133 8,767
Sunoco, Inc. 168,420 10,476
------------
79,386
------------
Continued
Shares Value
------------ -------------
Common Stocks, continued
Pharmaceuticals (7.2%)
Eli Lilly & Co. 159,063 $ 8,195
Forest Laboratories, Inc. * 196,490 7,814
Johnson & Johnson 134,736 8,523
Pfizer, Inc. 523,973 12,256
Wyeth 138,479 5,512
------------
42,300
------------
REITS - Diversified (1.0%)
Duke Realty Corp. 244,886 5,789
------------
Semiconductors & Semiconductor
Equipment (1.3%)
Applied Materials, Inc. 411,693 7,378
------------
Specialty Retail (1.6%)
TJX Cos., Inc. 299,413 9,449
------------
Tobacco (3.2%)
Altria Group, Inc. 149,707 11,351
UST, Inc. 140,350 7,292
------------
18,643
------------
Total Common Stocks 565,335
------------
Investments in Affiliates (a) (2.5%)
Fifth Third Institutional Money
Market Fund 14,462,777 14,463
------------
Total Investments in Affiliates 14,463
------------
Total Investments (Cost $520,641) - 99.2% 579,798
Other assets in excess of liabilities - 0.8% 4,704
------------
NET ASSETS - 100.0% $ 584,502
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
46
Structured Large Cap Plus
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ -------------
Common Stocks (129.5%)
Aerospace & Defense (d) (2.4%)
Honeywell International, Inc. 12,254 $ 724
L-3 Communications Holdings, Inc. 14,286 1,583
Raytheon Co. 28,223 1,839
------------
4,146
------------
Air Freight & Logistics (d) (1.3%)
United Parcel Service, Inc., Class B 29,282 2,142
------------
Airlines (d) (0.1%)
Southwest Airlines Co. 19,171 225
------------
Beverages (2.6%)
Molson Coors Brewing Co., Class B 4,875 218
Pepsi Bottling Group, Inc. (d) 57,387 2,000
PepsiCo, Inc. (d) 31,822 2,170
------------
4,388
------------
Biotechnology *(d) (1.6%)
Cephalon, Inc. 10,333 678
Gilead Sciences, Inc. 44,608 2,038
------------
2,716
------------
Building Products (d) (0.3%)
Masco Corp. 24,399 559
------------
Capital Markets (4.2%)
Ameriprise Financial, Inc. 83 5
Charles Schwab Corp. (The) 5,065 113
Goldman Sachs Group, Inc. (The) (d) 11,488 2,306
Janus Capital Group, Inc. (d) 49,197 1,329
Lehman Brothers Holdings, Inc. (d) 9,629 618
Merrill Lynch & Co., Inc. (d) 13,414 756
Morgan Stanley (d) 39,917 1,973
T Rowe Price Group, Inc. 2,135 108
------------
7,208
------------
Chemicals (2.0%)
Ashland, Inc. (d) 28,925 1,317
Dow Chemical Co. (The) (d) 8,998 348
Eastman Chemical Co. 743 49
Ecolab, Inc. (d) 4,342 209
Praxair, Inc. (d) 18,003 1,457
Sigma-Aldrich Corp. 666 33
------------
3,413
------------
Commercial Banks (4.2%)
Comerica, Inc. (d) 28,876 1,259
SunTrust Banks, Inc. (d) 22,375 1,543
Synovus Financial Corp. (d) 28,069 371
Wachovia Corp. 41,100 1,600
Wells Fargo & Co. (d) 67,587 2,299
------------
7,072
------------
Continued
Shares Value
------------ -------------
Common Stocks, continued
Commercial Services & Supplies (1.1%)
Allied Waste Industries, Inc. * 27,892 $ 275
ChoicePoint, Inc. * (d) 25,948 864
Monster Worldwide, Inc. * 3,187 89
Robert Half International, Inc. 20,563 571
------------
1,799
------------
Communications Equipment *(d) (2.0%)
Cisco Systems, Inc. 70,077 1,717
Juniper Networks, Inc. 63,113 1,713
------------
3,430
------------
Computers & Peripherals (4.4%)
Apple, Inc. *(d) 25,768 3,488
Dell, Inc. * 16,690 334
EMC Corp. *(d) 31,481 500
International Business Machines Corp. 29,965 3,216
------------
7,538
------------
Construction & Engineering (0.2%)
Fluor Corp. 2,536 309
------------
Consumer Finance (d) (1.0%)
American Express Co. 16,640 821
Capital One Financial Corp. 17,120 938
------------
1,759
------------
Containers & Packaging (1.4%)
Ball Corp. (d) 38,698 1,776
Bemis Co., Inc. 7,827 213
Sealed Air Corp. 14,523 380
Temple-Inland, Inc. (d) 3,440 64
------------
2,433
------------
Diversified Consumer Services * (1.1%)
Apollo Group, Inc., Class A 22,351 1,782
------------
Diversified Financial Services (5.9%)
Bank of America Corp. 51,134 2,268
Citigroup, Inc. (d) 73,431 2,072
IntercontinentalExchange, Inc. * 1,191 167
JPMorgan Chase & Co. (d) 87,840 4,177
Leucadia National Corp. 13,141 580
Nasdaq Stock Market, Inc. (The) * 16,153 747
------------
10,011
------------
Diversified Telecommunication
Services (d) (4.0%)
AT&T, Inc. 41,575 1,600
CenturyTel, Inc. 37,552 1,386
Embarq Corp. 25,862 1,172
Verizon Communications, Inc. 66,999 2,602
------------
6,760
------------
Continued
47
Structured Large Cap Plus
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Electric Utilities (2.5%)
Edison International (d) 23,941 $ 1,249
FirstEnergy Corp. (d) 37,928 2,701
Pepco Holdings, Inc. 2,899 74
Pinnacle West Capital Corp. 6,372 245
------------
4,269
------------
Electrical Components
& Equipment (d) (1.0%)
Emerson Electric Co. 18,588 945
Rockwell Automation, Inc. 14,233 812
------------
1,757
------------
Electronic Equipment
& Instruments (0.2%)
Molex, Inc. 13,194 317
------------
Energy Equipment & Service (4.9%)
Halliburton Co. (d) 85,805 2,846
National Oilwell Varco, Inc. *(d) 37,476 2,257
Noble Corp. 4,840 212
Schlumberger, Ltd. 8,793 664
Smith International, Inc. (d) 43,463 2,356
------------
8,335
------------
Food & Staples Retailing (2.6%)
Kroger Co. (The) (d) 44,637 1,136
Safeway, Inc. (d) 12,680 393
SUPERVALU, Inc. 7,356 221
Wal-Mart Stores, Inc. (d) 53,522 2,723
------------
4,473
------------
Food Products (3.2%)
General Mills, Inc. (d) 42,814 2,338
HJ Heinz Co. (d) 2,032 87
Kellogg Co. 45,889 2,198
Tyson Foods, Inc., Class A 11,851 169
Wm. Wrigley Jr. Corp. 11,430 656
------------
5,448
------------
Gas-Distribution (d) (0.7%)
Oneok, Inc. 22,809 1,072
Questar Corp. 1,612 82
------------
1,154
------------
Healthcare Equipment & Supplies (2.3%)
Baxter International, Inc. (d) 23,292 1,415
Intuitive Surgical, Inc. * 1,539 391
Kinetic Concepts, Inc. * 4,091 204
Medtronic, Inc. (d) 20,084 935
Stryker Corp. (d) 15,323 1,026
------------
3,971
------------
Continued
Shares Value
------------ -------------
Common Stocks, continued
Healthcare Providers & Services (6.7%)
Aetna, Inc. (d) 30,726 $ 1,636
Cigna Corp. 29,427 1,447
Coventry Health Care, Inc. *(d) 22,911 1,296
Express Scripts, Inc. *(d) 22,571 1,523
Humana, Inc. *(d) 20,669 1,660
Medco Health Solutions, Inc. * 33,520 1,679
UnitedHealth Group, Inc. (d) 32,494 1,652
WellPoint, Inc. *(d) 5,337 417
------------
11,310
------------
Hotels Restaurants & Leisure (2.5%)
Darden Restaurants, Inc. (d) 62,936 1,782
International Game Technology 14,264 609
McDonald's Corp. 16,137 864
Tim Hortons, Inc. 5,787 198
Wendy's International, Inc. (d) 12,712 311
Wyndham Worldwide Corp. (d) 16,808 396
Yum! Brands, Inc. 4,692 160
------------
4,320
------------
Household Durables (1.0%)
Black & Decker Corp. (d) 6,641 482
Centex Corp. 6,708 186
KB Home 8,032 221
NVR, Inc. *(d) 1,317 832
------------
1,721
------------
Household Products (2.1%)
Clorox Co. 6,484 398
Kimberly-Clark Corp. 29,655 1,947
Procter & Gamble Co. (d) 18,430 1,215
------------
3,560
------------
Industrial Conglomerates (3.3%)
3M Co. (d) 5,668 451
General Electric Co. (b)(c)(d) 82,772 2,931
Textron, Inc. 998 56
Tyco International, Ltd. 53,382 2,101
------------
5,539
------------
Insurance (4.1%)
Aflac, Inc. 27,864 1,709
AMBAC Financial Group, Inc. 1,555 18
American International Group, Inc. (d) 46,674 2,575
MetLife, Inc. 25,654 1,513
Travelers Cos., Inc. (The) (d) 21,493 1,034
Unum Group (d) 4,876 110
------------
6,959
------------
Internet & Catalog Retail *(d) (0.7%)
Amazon.Com, Inc. 12,301 956
Expedia, Inc. 11,707 269
------------
1,225
------------
Continued
48
Structured Large Cap Plus
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ -------------
Common Stocks, continued
Internet Software & Services * (3.2%)
eBay, Inc. (d) 94,580 $ 2,543
Google, Inc., Class A (d) 3,062 1,728
VeriSign, Inc. 18,439 626
Yahoo!, Inc. (d) 29,526 566
------------
5,463
------------
IT Services (1.7%)
Affiliated Computer Services, Inc.,
Class A * 1,023 50
Automatic Data Processing, Inc. (d) 15,195 616
Computer Sciences Corp. *(d) 46,484 1,967
Total System Services, Inc. 13,583 314
------------
2,947
------------
Leisure Equipment & Products (d) (0.6%)
Eastman Kodak Co. 49,865 994
------------
Life Sciences Tools & Services (1.2%)
Invitrogen Corp. *(d) 10,669 914
Millipore Corp. * 7,697 540
PerkinElmer, Inc. (d) 20,077 500
------------
1,954
------------
Machinery (2.3%)
Caterpillar, Inc. (d) 8,872 631
Cummins, Inc. (d) 3,224 156
Ingersoll-Rand Co., Ltd., Class A 4,840 191
ITT Corp. (d) 33,528 1,993
Parker Hannifin Corp. 13,476 911
------------
3,882
------------
Media (3.3%)
CBS Corp., Class B (d) 77,020 1,940
Clear Channel Communications, Inc. 3,683 113
Liberty Global, Inc., Class A *(d) 10,145 410
News Corp., Class A 9,267 175
Omnicom Group, Inc. 4,061 185
Walt Disney Co. (The) (d) 95,187 2,849
------------
5,672
------------
Metals & Mining (1.0%)
Alcoa, Inc. (d) 28,897 957
Newmont Mining Corp. (d) 12,774 694
------------
1,651
------------
Multiline Retail (d) (1.2%)
Dollar Tree Stores, Inc. * 18,634 522
Family Dollar Stores, Inc. 25,173 529
Macy's, Inc. 34,249 947
------------
1,998
------------
Multi-Utilities (d) (1.9%)
Dominion Resources, Inc. 12,688 545
DTE Energy Co. 60,882 2,597
------------
3,142
------------
Continued
Shares Value
------------ -------------
Common Stocks, continued
Oil & Gas (9.7%)
Chevron Corp. (d) 27,877 $ 2,356
ConocoPhillips (d) 34,087 2,738
Exxon Mobil Corp. (d) 91,361 7,894
Frontier Oil Corp. (d) 1,435 51
Hess Corp. 287 26
Marathon Oil Corp. 1,730 81
Sunoco, Inc. (d) 10,491 652
Tesoro Corp. (d) 15,607 609
Valero Energy Corp. (d) 34,507 2,042
------------
16,449
------------
Pharmaceuticals (6.6%)
Allergan, Inc. 2,517 169
Bristol-Myers Squibb Co. (d) 35,884 832
Eli Lilly & Co. (d) 39,149 2,017
Forest Laboratories, Inc. *(d) 41,119 1,635
Johnson & Johnson (d) 20,322 1,286
Merck & Co., Inc. 8,035 372
Pfizer, Inc. (d) 155,955 3,648
Watson Pharmaceuticals, Inc. *(d) 48,202 1,258
------------
11,217
------------
Real Estate Management
& Development * (0.0%)
Forestar Real Estate Group, Inc. 1,146 26
------------
REIT - Diversified (0.0%)
CapitalSource, Inc.(d) 4,184 69
------------
REIT - Forestry (0.4%)
Plum Creek Timber Co., Inc.(d) 17,146 716
------------
REIT - Hotels (0.3%)
Host Hotels & Resorts, Inc.(d) 25,571 428
------------
REIT - Mortgage (0.1%)
Annaly Capital Management, Inc. 5,601 110
------------
Road & Rail (d) (1.1%)
Norfolk Southern Corp. 31,759 1,727
Union Pacific Corp. 824 103
------------
1,830
------------
Semiconductors & Semiconductor
Equipment (d) (5.0%)
Applied Materials, Inc. 80,050 1,434
Intel Corp. 88,000 1,866
MEMC Electronic Materials, Inc. * 24,642 1,761
National Semiconductor Corp. 19,574 361
Nvidia Corp. * 29,892 735
Texas Instruments, Inc. 74,050 2,290
------------
8,447
------------
Continued
49
Structured Large Cap Plus
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ -------------
Common Stocks, continued
Software (5.3%)
Autodesk, Inc. *(d) 28,150 $ 1,158
BMC Software, Inc. * 23,194 743
Citrix Systems, Inc. * 15,270 529
Microsoft Corp. (b)(c)(d) 177,152 5,775
Novell, Inc. *(d) 133,877 852
------------
9,057
------------
Specialty Retail (2.9%)
Abercrombie & Fitch Co., Class A 3,326 265
AutoZone, Inc. *(d) 8,456 1,022
GameStop Corp., Class A * 32,586 1,686
Gap, Inc. (The) 10,325 198
Home Depot, Inc. (d) 21,329 654
Tiffany & Co. 3,805 152
TJX Cos., Inc. 28,272 892
------------
4,869
------------
Textiles Apparel & Luxury Goods (d) (1.4%)
Coach, Inc. * 7,344 235
Nike, Inc., Class B 18,649 1,152
Polo Ralph Lauren Corp. 16,816 1,019
------------
2,406
------------
Thrifts & Mortgage Finance * (0.0%)
Guaranty Financial Group, Inc. 1,146 16
------------
Tobacco (d) (1.6%)
Altria Group, Inc. 36,493 2,767
------------
Utilities * (0.6%)
AES Corp. (The) 53,099 1,013
------------
Wireless Telecommunication
Services (d) (0.5%)
Sprint Nextel Corp. 83,256 877
------------
Total Common Stocks 220,048
------------
Continued
Shares Value
------------ -------------
Investments in Affiliates (a) (1.2%)
Fifth Third Institutional Money
Market Fund 2,035,371 $ 2,035
------------
Total Investments in Affiliates 2,035
------------
Total Investments (Cost $222,741) - 130.7% 222,083
Securities Sold Short
(Proceeds $60,828) - (30.7)% (52,246)
Other assets in excess of liabilities - 0.0% 47
------------
NET ASSETS - 100.0% $ 169,884
============
See notes to schedules of investments
and notes to financial statements.
50
Structured Large Cap Plus
Schedule of Securities Sold Short
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (30.7)%
Aerospace & Defense (0.1)%
Rockwell Collins, Inc. (3,093) $ (196)
------------
Capital Markets (0.1)%
American Capital Strategies, Ltd. (4,993) (176)
Legg Mason, Inc. (782) (56)
------------
(232)
------------
Commercial Services & Supplies (1.4)%
Equifax, Inc. (8,468) (314)
Pitney Bowes, Inc. (56,862) (2,087)
------------
(2,401)
------------
Communications * (0.3)%
Amdocs, Ltd. (14,142) (468)
------------
Construction Materials (0.3)%
Vulcan Materials Co. (6,872) (539)
------------
Consumer, Non-cyclic * (1.5)%
Health Net, Inc. (22,449) (1,044)
Hertz Global Holdings, Inc. (24,888) (371)
Smithfield Foods, Inc. (42,628) (1,187)
------------
(2,602)
------------
Containers & Packaging * (0.1)%
Pactiv Corp. (3,974) (114)
------------
Diversified Financial Services (0.2)%
Moody's Corp. (7,698) (269)
------------
Diversified Telecommunication
Services (1.3)%
Citizens Communications Co. (98,481) (1,130)
Qwest Communications
International, Inc. (194,975) (1,146)
------------
(2,276)
------------
Electronic Equipment
& Instruments (0.2)%
Jabil Circuit, Inc. (26,489) (351)
------------
Energy Equipment
& Service (0.9)%
Baker Hughes, Inc. (10,471) (680)
BJ Services Co. (36,127) (786)
------------
(1,466)
------------
Financial (0.1)%
Brookfield Properties Corp. (5,334) (108)
------------
Food & Staples Retailing (0.6)%
Whole Foods Market, Inc. (27,745) (1,094)
------------
Food Products (2.0)%
Archer-Daniels-Midland Co. (47,281) (2,083)
Campbell Soup Co. (3,566) (113)
ConAgra Foods, Inc. (26,886) (579)
Sara Lee Corp. (49,232) (692)
------------
(3,467)
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Healthcare Equipment
& Supplies * (0.8)%
St Jude Medical, Inc. (4,831) $ (196)
Zimmer Holdings, Inc. (14,886) (1,165)
------------
(1,361)
------------
Healthcare Providers & Services (1.9)%
Cardinal Health, Inc. (4,929) (286)
Community Health Systems, Inc. * (20,074) (644)
Laboratory Corp. of America Holdings * (6,115) (452)
Omnicare, Inc. (29,062) (643)
Tenet Healthcare Corp. * (260,984) (1,156)
------------
(3,181)
------------
Hotels Restaurants & Leisure * (0.7)%
Starbucks Corp. (64,396) (1,218)
------------
Household Durables (0.4)%
Newell Rubbermaid, Inc. (30,994) (748)
------------
Industrial (0.5)%
JB Hunt Transport Services, Inc. (11,242) (349)
Owens Corning, Inc. * (19,856) (432)
------------
(781)
------------
Insurance (0.2)%
Old Republic International Corp. (20,216) (302)
------------
Internet * (0.2)%
Check Point Software (17,342) (369)
------------
Internet Software & Services * (0.1)%
Akamai Technologies, Inc. (6,957) (210)
------------
IT Services (1.2)%
Cognizant Technology Solutions
Corp., Class A * (54,075) (1,509)
Electronic Data Systems Corp. (17,154) (345)
Fidelity National Information
Services, Inc. (2,268) (96)
------------
(1,950)
------------
Leisure Equipment & Products (1.3)%
Mattel, Inc. (101,509) (2,133)
------------
Machinery * (0.0)%
Terex Corp. (890) (52)
------------
Materials (1.2)%
Agnico-Eagle Mines, Ltd. * (13,931) (879)
Cameco Corp. (34,093) (1,154)
------------
(2,033)
------------
Multiline Retail (0.8)%
JC Penney Co., Inc. (19,643) (931)
Kohl's Corp. * (10,497) (479)
------------
(1,410)
------------
Continued
51
Structured Large Cap Plus
Schedule of Securities Sold Short, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Multi-Utilities (1.6)%
CMS Energy Corp. (7,707) $ (121)
Integrys Energy Group, Inc. (52,472) (2,551)
------------
(2,672)
------------
Office Electronics (1.1)%
Xerox Corp. (118,362) (1,823)
------------
Oil & Gas Drilling (0.7)%
Diamond Offshore Drilling, Inc. (3,269) (369)
Helmerich & Payne, Inc. (18,694) (733)
------------
(1,102)
------------
Oil & Gas Exploration
& Production * (0.9)%
Quicksilver Resources, Inc. (27,738) (1,576)
------------
Pharmaceuticals * (0.8)%
Barr Pharmaceuticals, Inc. (24,241) (1,265)
------------
Pharmaceuticals &
Biotechnology * (0.6)%
Amylin Pharmaceuticals, Inc. (33,009) (979)
------------
Pipelines (0.0)%
Equitable Resources, Inc. (1,065) (59)
------------
REIT - Apartments (0.1%)
AvalonBay Communities, Inc. (1,798) (169)
UDR, Inc. (1,323) (30)
------------
(199)
------------
REIT - Office Property (0.7%)
Boston Properties, Inc. (13,540) (1,245)
------------
REIT - Shopping Centers (0.1%)
Regency Centers Corp. (3,473) (213)
------------
REIT - Storage (0.5%)
Public Storage (10,844) (849)
------------
Semiconductor Equipment * (0.3)%
Marvell Technology Group, Ltd. (39,249) (466)
------------
Semiconductors & Semiconductor
Equipment (1.2)%
Advanced Micro Devices, Inc. * (47,523) (363)
Intersil Corp., Class A (8,517) (196)
LSI Corp. * (49,140) (257)
Micron Technology, Inc. * (161,882) (1,138)
------------
(1,954)
------------
Software * (0.9)%
Intuit, Inc. (51,395) (1,577)
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Specialty Retail (0.8)%
Circuit City Stores, Inc. (62,895) $ (342)
Limited Brands, Inc. (14,989) (286)
OfficeMax, Inc. (27,569) (683)
------------
(1,311)
------------
Technology Hardware
& Equipment * (0.0)%
Nortel Networks Corp. (3,405) (42)
------------
Textiles Apparel & Luxury Goods (0.2)%
Jones Apparel Group, Inc. (21,720) (365)
------------
Thrifts & Mortgage Finance (0.1)%
Sovereign Bancorp, Inc. (18,112) (226)
------------
Tobacco (0.1)%
UST, Inc. (3,749) (195)
------------
Utilities * (1.0)%
Dynegy, Inc., Class A (189,093) (1,327)
Reliant Energy, Inc. (19,869) (423)
------------
(1,750)
------------
Wireless Telecommunication
Services * (0.6)%
NII Holdings, Inc. (24,541) (1,047)
------------
Total Common Stocks (52,246)
------------
TOTAL SECURITIES SOLD SHORT
(Proceeds $60,829) - (30.7)% $ (52,246)
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund/portfolio.
(b) Part of this security has been deposited as initial margin on open futures
contracts.
(c) All or part of this security has been designated as collateral for when
issued or delayed delivery transactions.
(d) All or part of this security has been designated as collateral for short
sales.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
52
Equity Index
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks (98.7%)
Aerospace & Defense (2.9%)
Boeing Co. 24,383 $ 2,028
General Dynamics Corp. 12,622 1,066
Goodrich Corp. 3,897 244
Honeywell International, Inc. 23,284 1,375
L-3 Communications Holdings, Inc. 3,921 435
Lockheed Martin Corp. 10,803 1,166
Northrop Grumman Corp. 10,493 833
Precision Castparts Corp. 4,289 488
Raytheon Co. 13,345 869
Rockwell Collins, Inc. 5,185 328
United Technologies Corp. 30,857 2,265
------------
11,097
------------
Air Freight & Logistics (1.0%)
CH Robinson Worldwide, Inc. 5,370 298
Expeditors International
Washington, Inc. 6,627 314
FedEx Corp. 9,606 898
United Parcel Service, Inc., Class B 32,903 2,407
------------
3,917
------------
Airlines (0.1%)
Southwest Airlines Co. 23,251 273
------------
Auto Components (0.2%)
Goodyear Tire & Rubber Co. (The) * 7,524 189
Johnson Controls, Inc. 18,481 654
------------
843
------------
Automobiles (0.3%)
Ford Motor Co. * 65,323 434
General Motors Corp. 17,605 498
Harley-Davidson, Inc. 7,470 303
------------
1,235
------------
Beverages (2.4%)
Anheuser-Busch Cos., Inc. 22,996 1,070
Brown-Forman Corp., Class B 2,690 169
Coca-Cola Co. (The) 62,197 3,680
Coca-Cola Enterprises, Inc. 8,869 205
Constellation Brands, Inc.,
Class A * 6,036 126
Molson Coors Brewing Co., Class B 4,241 190
Pepsi Bottling Group, Inc. 4,359 152
PepsiCo, Inc. 50,480 3,442
------------
9,034
------------
Biotechnology * (1.3%)
Amgen, Inc. 34,148 1,591
Biogen Idec, Inc. 9,239 563
Celgene Corp. 12,232 686
Genzyme Corp. 8,417 658
Gilead Sciences, Inc. 29,170 1,333
------------
4,831
------------
Building Products (0.1%)
Masco Corp. 11,423 262
Trane, Inc. 5,333 239
------------
501
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Capital Markets (3.4%)
American Capital Strategies, Ltd. 5,847 $ 206
Ameriprise Financial, Inc. 7,320 405
Bank of New York Mellon Corp. (The) 35,728 1,666
Bear Stearns Cos., Inc. (The) 3,613 326
Charles Schwab Corp. (The) 29,487 658
E*Trade Financial Corp. * 13,231 66
Federated Investors, Inc., Class B 2,724 116
Franklin Resources, Inc. 5,050 526
Goldman Sachs Group, Inc. (The) 12,445 2,499
Janus Capital Group, Inc. 4,911 133
Legg Mason, Inc. 4,131 297
Lehman Brothers Holdings, Inc. 16,514 1,060
Merrill Lynch & Co., Inc. 26,816 1,512
Morgan Stanley 33,204 1,641
Northern Trust Corp. 5,957 437
State Street Corp. 12,119 995
T Rowe Price Group, Inc. 8,250 417
------------
12,960
------------
Chemicals (1.9%)
Air Products & Chemicals, Inc. 6,722 605
Ashland, Inc. 1,739 79
Dow Chemical Co. (The) 29,558 1,143
E.I. du Pont de Nemours & Co. 28,151 1,272
Eastman Chemical Co. 2,615 173
Ecolab, Inc. 5,419 261
Hercules, Inc. 3,609 63
International Flavors & Fragrances, Inc. 2,531 108
Monsanto Co. 17,118 1,925
PPG Industries, Inc. 5,104 337
Praxair, Inc. 9,951 805
Rohm & Haas Co. 3,951 211
Sigma-Aldrich Corp. 4,085 203
------------
7,185
------------
Commercial Banks (3.2%)
BB&T Corp. 17,172 623
Comerica, Inc. 4,760 208
Commerce Bancorp, Inc. 5,981 228
First Horizon National Corp. 3,928 85
Huntington Bancshares, Inc. 11,385 153
Keycorp 12,114 317
M&T Bank Corp. 2,333 214
Marshall & Ilsley Corp. 8,293 231
National City Corp. 19,703 350
PNC Financial Services Group, Inc. 10,923 717
Regions Financial Corp. 21,901 553
SunTrust Banks, Inc. 10,860 749
US Bancorp 54,220 1,841
Wachovia Corp. 61,808 2,406
Wells Fargo & Co. 105,570 3,590
Zions Bancorporation 3,347 183
------------
12,448
------------
Continued
53
Equity Index
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Commercial Services & Supplies (0.5%)
Allied Waste Industries, Inc. * 8,972 $ 88
Avery Dennison Corp. 3,313 172
Cintas Corp. 4,197 138
Equifax, Inc. 4,102 152
Monster Worldwide, Inc. * 4,118 115
Pitney Bowes, Inc. 6,841 251
Robert Half International, Inc. 5,100 142
RR Donnelley & Sons Co. 6,910 241
Waste Management, Inc. 15,668 508
------------
1,807
------------
Communications Equipment (2.5%)
Ciena Corp. * 2,674 73
Cisco Systems, Inc. * 190,066 4,657
Corning, Inc. 49,616 1,194
JDS Uniphase Corp. * 6,585 69
Juniper Networks, Inc. * 16,465 447
Motorola, Inc. 72,012 830
Qualcomm, Inc. 51,164 2,170
Tellabs, Inc. * 13,636 93
------------
9,533
------------
Computers & Peripherals (4.1%)
Apple, Inc. * 27,384 3,707
Dell, Inc. * 70,032 1,403
EMC Corp. * 66,101 1,049
Hewlett-Packard Co. 80,599 3,526
International Business Machines Corp. 43,097 4,626
Lexmark International, Inc., Class A * 2,940 107
Network Appliance, Inc. * 11,070 257
QLogic Corp. * 4,259 61
SanDisk Corp. * 7,089 180
Sun Microsystems, Inc. * 25,779 451
Teradata Corp. * 5,616 134
------------
15,501
------------
Construction & Engineering (0.2%)
Fluor Corp. 2,748 334
Jacobs Engineering Group, Inc. * 3,731 285
------------
619
------------
Construction Materials (0.1%)
Vulcan Materials Co. 3,361 264
------------
Consumer Finance (0.8%)
American Express Co. 36,488 1,799
Capital One Financial Corp. 12,235 671
Discover Financial Services 14,848 260
SLM Corp. 12,837 279
------------
3,009
------------
Containers & Packaging (0.1%)
Ball Corp. 3,186 146
Bemis Co., Inc. 3,251 88
Pactiv Corp. * 4,067 116
Sealed Air Corp. 5,025 132
------------
482
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
Distributors (0.1%)
Genuine Parts Co. 5,287 $ 232
------------
Diversified Consumer Services (0.1%)
Apollo Group, Inc., Class A * 4,193 334
H&R Block, Inc. 10,100 195
------------
529
------------
Diversified Financial Services (4.8%)
Bank of America Corp. (c) 138,869 6,159
CIT Group, Inc. 5,936 166
Citigroup, Inc. (c) 156,234 4,409
CME Group, Inc. 1,714 1,061
IntercontinentalExchange, Inc. * 2,156 302
JPMorgan Chase & Co. 105,280 5,006
Leucadia National Corp. 5,459 241
Moody's Corp. 6,892 241
NYSE Euronext 8,214 646
------------
18,231
------------
Diversified Telecommunication
Services (3.1%)
AT&T, Inc. (c) 189,752 7,304
CenturyTel, Inc. 3,482 129
Citizens Communications Co. 10,586 121
Embarq Corp. 4,747 215
Qwest Communications International, Inc. 49,707 292
Verizon Communications, Inc. 90,304 3,507
Windstream Corp. 14,853 173
------------
11,741
------------
Electric Utilities (2.1%)
Allegheny Energy, Inc. 5,167 283
American Electric Power Co., Inc. 12,420 532
Duke Energy Corp. 39,208 732
Edison International 10,137 529
Entergy Corp. 6,088 659
Exelon Corp. 20,638 1,572
FirstEnergy Corp. 9,484 675
FPL Group, Inc. 12,889 831
Pepco Holdings, Inc. 6,568 167
Pinnacle West Capital Corp. 3,121 120
PPL Corp. 11,919 583
Progress Energy, Inc. 8,055 364
Southern Co. 23,949 870
------------
7,917
------------
Electrical Components
& Equipment (0.5%)
Cooper Industries, Ltd., Class A 5,715 254
Emerson Electric Co. 24,642 1,253
Rockwell Automation, Inc. 4,746 271
------------
1,778
------------
Electronic Equipment
& Instruments (0.3%)
Agilent Technologies, Inc. * 12,026 408
Jabil Circuit, Inc. 6,458 86
Molex, Inc. 4,468 107
Tyco Electronics, Ltd. 15,469 523
------------
1,124
------------
Continued
54
Equity Index
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Energy Equipment & Services (2.3%)
Baker Hughes, Inc. 9,942 $ 646
BJ Services Co. 9,073 197
Cameron International Corp. * 6,842 275
ENSCO International, Inc. 4,605 235
Halliburton Co. 27,695 919
Nabors Industries, Ltd. * 8,748 238
National Oilwell Varco, Inc. * 11,082 667
Noble Corp. 8,353 366
Rowan Cos., Inc. 3,438 117
Schlumberger, Ltd. 37,459 2,827
Smith International, Inc. 6,239 338
Transocean, Inc. * 9,961 1,221
Weatherford International, Ltd. * 10,485 648
------------
8,694
------------
Food & Staples Retailing (2.5%)
Costco Wholesale Corp. 13,625 926
CVS Caremark Corp. 46,074 1,800
Kroger Co. (The) 21,341 543
Safeway, Inc. 13,661 423
SUPERVALU, Inc. 6,537 197
SYSCO Corp. 18,978 551
Walgreen Co. 30,914 1,085
Wal-Mart Stores, Inc. 73,864 3,758
Whole Foods Market, Inc. 4,324 171
------------
9,454
------------
Food Products (1.4%)
Archer-Daniels-Midland Co. 20,023 882
Campbell Soup Co. 6,991 221
ConAgra Foods, Inc. 15,239 328
Dean Foods Co. 4,030 113
General Mills, Inc. 10,614 580
Hershey Co. (The) 5,260 190
HJ Heinz Co. 9,929 423
Kellogg Co. 8,255 395
Kraft Foods, Inc., Class A 48,464 1,418
McCormick & Co., Inc. (MD) 4,035 136
Sara Lee Corp. 22,542 317
Tyson Foods, Inc., Class A 8,558 122
Wm. Wrigley Jr. Corp. 6,759 388
------------
5,513
------------
Gas-Distribution (0.1%)
Nicor, Inc. 1,404 58
Questar Corp. 5,371 273
------------
331
------------
Healthcare Equipment & Supplies (1.8%)
Baxter International, Inc. 19,787 1,202
Becton Dickinson & Co. 7,572 655
Boston Scientific Corp. * 41,506 503
Covidien, Ltd. 15,468 690
CR Bard, Inc. 3,216 311
Hospira, Inc. * 4,888 201
Medtronic, Inc. 35,285 1,643
St Jude Medical, Inc. * 10,606 430
Stryker Corp. 7,382 494
Continued
Shares Value
------------ ------------
Common Stocks, continued
Healthcare Equipment & Supplies, continued
Varian Medical Systems, Inc. * 3,933 $ 205
Zimmer Holdings, Inc. * 7,348 575
------------
6,909
------------
Healthcare Providers & Services (2.3%)
Aetna, Inc. 15,635 833
AmerisourceBergen Corp. 5,239 244
Cardinal Health, Inc. 11,341 657
Cigna Corp. 8,800 433
Coventry Health Care, Inc. * 4,863 275
Express Scripts, Inc. * 7,793 526
Humana, Inc. * 5,244 421
Laboratory Corp. of America Holdings * 3,649 270
McKesson Corp. 8,963 563
Medco Health Solutions, Inc. * 16,848 844
Patterson Cos., Inc. * 4,354 140
Quest Diagnostics, Inc. 4,863 240
Tenet Healthcare Corp. * 14,743 65
UnitedHealth Group, Inc. 40,447 2,056
WellPoint, Inc. * 17,956 1,404
------------
8,971
------------
Healthcare Technology (0.0%)
IMS Health, Inc. 6,066 145
------------
Hotels Restaurants & Leisure (1.3%)
Carnival Corp. 13,576 604
Darden Restaurants, Inc. 4,408 125
International Game Technology 9,882 422
Marriott International, Inc. 9,942 358
McDonald's Corp. 37,079 1,986
Starbucks Corp. * 23,188 438
Starwood Hotels & Resorts
Worldwide, Inc. 6,196 280
Wendy's International, Inc. 2,717 66
Wyndham Worldwide Corp. 5,557 131
Yum! Brands, Inc. 15,748 538
------------
4,948
------------
Household Durables (0.5%)
Black & Decker Corp. 2,044 148
Centex Corp. 3,732 104
DR Horton, Inc. 8,502 147
Fortune Brands, Inc. 4,766 333
Harman International Industries, Inc. 1,882 88
KB Home 2,395 66
Leggett & Platt, Inc. 5,435 103
Lennar Corp., Class A 4,338 89
Newell Rubbermaid, Inc. 8,596 207
Pulte Homes, Inc. 6,608 108
Snap-On, Inc. 1,802 89
Stanley Works (The) 2,554 131
Whirlpool Corp. 2,427 207
------------
1,820
------------
Continued
55
Equity Index
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Household Products (2.3%)
Clorox Co. 4,305 $ 264
Colgate-Palmolive Co. 15,866 1,222
Kimberly-Clark Corp. 13,242 869
Procter & Gamble Co. 97,093 6,403
------------
8,758
------------
Industrial Conglomerates (3.7%)
3M Co. 22,270 1,774
General Electric Co. (b) (c) 316,257 11,199
Textron, Inc. 7,769 435
Tyco International, Ltd. 15,467 609
------------
14,017
------------
Insurance (4.2%)
ACE, Ltd. 10,236 597
Aflac, Inc. 15,198 932
Allstate Corp. (The) 17,880 881
AMBAC Financial Group, Inc. 3,165 37
American International Group, Inc. 79,387 4,379
AON Corp. 9,109 396
Assurant, Inc. 3,002 195
Chubb Corp. 11,935 618
Cincinnati Financial Corp. 5,351 206
Genworth Financial, Inc., Class A 13,773 335
Hartford Financial Services Group, Inc. 9,884 798
Lincoln National Corp. 8,422 458
Loews Corp. 13,832 646
Marsh & McLennan Cos., Inc 16,220 448
MBIA, Inc. 3,937 61
MetLife, Inc. 23,112 1,363
Principal Financial Group, Inc. 8,264 493
Progressive Corp. (The) 21,637 401
Prudential Financial, Inc. 14,280 1,205
Safeco Corp. 2,942 157
Torchmark Corp. 2,977 182
Travelers Cos., Inc. (The) 20,119 968
Unum Group 11,225 254
XL Capital, Ltd., Class A 5,654 254
------------
16,264
------------
Internet & Catalog Retail * (0.3%)
Amazon.Com, Inc. 9,686 753
Expedia, Inc. 6,358 146
IAC/InterActiveCorp 5,944 154
------------
1,053
------------
Internet Software & Services * (1.6%)
Akamai Technologies, Inc. 5,152 156
eBay, Inc. 35,496 954
Google, Inc., Class A 7,242 4,087
VeriSign, Inc. 6,874 233
Yahoo!, Inc. 41,914 804
------------
6,234
------------
Continued
Shares Value
------------ ------------
Common Stocks, continued
IT Services (0.8%)
Affiliated Computer Services, Inc.,
Class A * 3,098 $ 151
Automatic Data Processing, Inc. 16,522 670
Cognizant Technology Solutions
Corp., Class A * 8,998 251
Computer Sciences Corp. * 5,413 229
Convergys Corp. * 4,218 66
Electronic Data Systems Corp. 15,834 318
Fidelity National Information
Services, Inc. 5,286 225
Fiserv, Inc. * 5,192 267
Paychex, Inc. 10,583 346
Total System Services, Inc. 4,929 114
Unisys Corp. * 10,888 45
Western Union Co. (The) 23,361 523
------------
3,205
------------
Leisure Equipment & Products (0.1%)
Brunswick Corp. 2,766 52
Eastman Kodak Co. 8,929 178
Hasbro, Inc. 4,576 119
Mattel, Inc. 11,413 240
------------
589
------------
Life Sciences Tools & Services (0.3%)
Applera Corp. - Applied Biosystems Group 5,180 163
Millipore Corp. * 1,679 118
PerkinElmer, Inc. 3,774 94
Thermo Fisher Scientific, Inc. * 13,272 683
Waters Corp. * 3,105 179
------------
1,237
------------
Machinery (1.8%)
Caterpillar, Inc. 19,885 1,415
Cummins, Inc. 6,474 313
Danaher Corp. 7,918 589
Deere & Co. 13,991 1,228
Dover Corp. 6,365 257
Eaton Corp. 4,533 375
Illinois Tool Works, Inc. 13,053 658
Ingersoll-Rand Co., Ltd., Class A 8,507 336
ITT Corp. 5,634 335
Manitowoc Co., Inc. (The) 4,237 161
Paccar, Inc. 11,602 544
Pall Corp. 3,814 141
Parker Hannifin Corp. 5,206 352
Terex Corp. * 3,170 186
------------
6,890
------------
Media (2.8%)
CBS Corp., Class B 21,310 537
Clear Channel Communications, Inc. 15,492 476
Comcast Corp., Class A * 96,156 1,746
DIRECTV Group, Inc. (The) * 22,336 504
EW Scripps Co., Class A 2,792 114
Gannett Co., Inc. 7,246 268
Continued
56
Equity Index
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
Media, continued
Interpublic Group of Cos., Inc * 14,668 $ 131
McGraw-Hill Cos., Inc. (The) 10,182 435
Meredith Corp. 1,197 56
New York Times Co. (The), Class A 4,478 75
News Corp., Class A 72,807 1,376
Omnicom Group, Inc. 10,214 464
Time Warner, Inc. 113,143 1,781
Viacom, Inc., Class B * 20,570 797
Walt Disney Co. (The) 59,550 1,782
Washington Post Co. (The) 181 135
------------
10,677
------------
Metals & Mining (1.0%)
Alcoa, Inc. 26,540 878
Allegheny Technologies, Inc. 3,180 224
Freeport-McMoRan Copper & Gold, Inc. 12,035 1,072
Newmont Mining Corp. 14,048 763
Nucor Corp. 8,957 518
Titanium Metals Corp. 2,725 59
United States Steel Corp. 3,678 376
------------
3,890
------------
Multiline Retail (0.8%)
Big Lots, Inc. * 3,166 55
Dillard's, Inc., Class A 1,893 37
Family Dollar Stores, Inc. 4,529 95
JC Penney Co., Inc. 6,896 327
Kohl's Corp. * 9,887 451
Macy's, Inc. 13,488 373
Nordstrom, Inc. 5,697 222
Sears Holdings Corp. * 2,355 260
Target Corp. 25,959 1,443
------------
3,263
------------
Multi-Utilities (1.1%)
Ameren Corp. 6,459 289
Centerpoint Energy, Inc. 9,993 160
CMS Energy Corp. 6,987 110
Consolidated Edison, Inc. 8,431 367
Dominion Resources, Inc. 18,445 793
DTE Energy Co. 5,309 226
Integrys Energy Group, Inc. 2,364 115
NiSource, Inc. 8,530 162
PG&E Corp. 10,994 451
Public Service Enterprise Group, Inc. 7,911 760
Sempra Energy 8,214 459
TECO Energy, Inc. 6,550 109
Xcel Energy, Inc. 13,063 272
------------
4,273
------------
Office Electronics (0.1%)
Xerox Corp. 29,116 448
------------
Oil & Gas (9.9%)
Anadarko Petroleum Corp. 14,681 860
Apache Corp. 10,329 986
Continued
Shares Value
------------ ------------
Common Stocks, continued
Oil & Gas, continued
Chesapeake Energy Corp. 14,195 $ 529
Chevron Corp. 66,036 5,580
ConocoPhillips 50,015 4,017
Consol Energy, Inc. 5,672 414
Devon Energy Corp. 13,876 1,179
El Paso Corp. 21,796 359
EOG Resources, Inc. 7,794 682
Exxon Mobil Corp. (c) 170,927 14,768
Hess Corp. 8,786 798
Marathon Oil Corp. 22,258 1,043
Murphy Oil Corp. 5,865 431
Noble Energy, Inc. 5,324 387
Occidental Petroleum Corp. 25,846 1,754
Peabody Energy Corp. 8,260 446
Range Resources Corp. 4,643 243
Spectra Energy Corp. 19,667 449
Sunoco, Inc. 3,745 233
Tesoro Corp. 4,257 166
Valero Energy Corp. 17,231 1,020
Williams Cos., Inc. 18,675 597
XTO Energy, Inc. 15,311 795
------------
37,736
------------
Paper & Forest Products (0.3%)
International Paper Co. 13,367 431
MeadWestvaco Corp. 5,707 160
Weyerhaeuser Co. 6,492 440
------------
1,031
------------
Personal Products (0.2%)
Avon Products, Inc. 13,461 471
Estee Lauder Cos., Inc. (The),
Class A 3,566 151
------------
622
------------
Pharmaceuticals (6.2%)
Abbott Laboratories 48,372 2,723
Allergan, Inc. 9,567 643
Barr Pharmaceuticals, Inc. * 3,336 174
Bristol-Myers Squibb Co. 62,111 1,441
Eli Lilly & Co. 31,003 1,597
Forest Laboratories, Inc. * 9,836 391
Johnson & Johnson 89,572 5,666
King Pharmaceuticals, Inc. * 7,597 80
Merck & Co., Inc. 68,078 3,151
Mylan Laboratories, Inc. 9,405 140
Pfizer, Inc. 213,655 4,998
Schering-Plough Corp. 50,994 998
Watson Pharmaceuticals, Inc. * 3,189 83
Wyeth 41,835 1,665
------------
23,750
------------
Real Estate Management
& Development * (0.0%)
CB Richard Ellis Group, Inc.,
Class A 6,135 119
------------
Continued
57
Equity Index
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
------------ ------------
Common Stocks, continued
REIT - Apartments (0.2%)
Apartment Investment & Management Co. 3,010 $ 119
AvalonBay Communities, Inc. 2,481 233
Equity Residential 8,622 323
------------
675
------------
REIT - Diversified (0.1%)
Vornado Realty Trust 4,162 376
------------
REIT - Forestry (0.1%)
Plum Creek Timber Co., Inc. 5,431 227
------------
REIT - Hotels (0.1%)
Host Hotels & Resorts, Inc. 16,249 272
------------
REIT - Office Property (0.1%)
Boston Properties, Inc. 3,703 340
------------
REIT - Regional Mall (0.2%)
General Growth Properties, Inc. 7,641 279
Simon Property Group, Inc. 6,950 621
------------
900
------------
REIT - Shopping Centers (0.1%)
Developers Diversified Realty Corp. 3,864 159
Kimco Realty Corp. 7,847 281
------------
440
------------
REIT - Storage (0.1%)
Public Storage 3,873 303
------------
REIT - Warehouse/Industry (0.1%)
Prologis 7,995 475
------------
Road & Rail (0.8%)
Burlington Northern Santa Fe Corp. 9,346 809
CSX Corp. 13,142 637
Norfolk Southern Corp. 12,246 666
Ryder System, Inc. 1,861 97
Union Pacific Corp. 8,158 1,020
------------
3,229
------------
Semiconductors & Semiconductor
Equipment (2.4%)
Advanced Micro Devices, Inc. * 18,636 142
Altera Corp. 10,449 177
Analog Devices, Inc. 9,682 275
Applied Materials, Inc. 42,876 768
Broadcom Corp., Class A * 14,595 322
Intel Corp. 182,843 3,876
Kla-Tencor Corp. 5,667 237
Linear Technology Corp. 6,907 191
LSI Corp. * 22,278 116
MEMC Electronic Materials, Inc. * 7,177 513
Microchip Technology, Inc. 6,765 216
Micron Technology, Inc. * 23,548 166
National Semiconductor Corp. 7,479 138
Continued
Shares Value
------------ ------------
Common Stocks, continued
Semiconductors & Semiconductor
Equipment, continued
Novellus Systems, Inc. * 3,614 $ 86
Nvidia Corp. * 17,530 431
Teradyne, Inc. * 5,402 59
Texas Instruments, Inc. 43,698 1,352
Xilinx, Inc. 9,206 201
------------
9,266
------------
Software (3.6%)
Adobe Systems, Inc. * 17,927 626
Autodesk, Inc. * 7,156 295
BMC Software, Inc. * 6,260 201
CA, Inc. 12,092 266
Citrix Systems, Inc. * 5,902 204
Compuware Corp. * 8,904 76
Electronic Arts, Inc. * 9,947 471
Intuit, Inc. * 10,544 324
Microsoft Corp. (c) 251,663 8,204
Novell, Inc. * 10,885 69
Oracle Corp. * 123,305 2,534
Symantec Corp. * 27,000 484
------------
13,754
------------
Specialty Retail (1.7%)
Abercrombie & Fitch Co., Class A 2,696 215
AutoNation, Inc. * 4,293 70
AutoZone, Inc. * 1,424 172
Bed Bath & Beyond, Inc. * 8,442 272
Best Buy Co., Inc. 10,918 533
Circuit City Stores, Inc. 5,243 28
GameStop Corp., Class A * 4,949 256
Gap, Inc. (The) 14,535 278
Home Depot, Inc. 52,535 1,611
Limited Brands, Inc. 9,920 189
Lowe's Cos., Inc 46,002 1,216
Office Depot, Inc. * 8,487 126
OfficeMax, Inc. 2,344 58
RadioShack Corp. 4,287 74
Sherwin-Williams Co. (The) 3,106 178
Staples, Inc. 22,212 532
Tiffany & Co. 4,254 170
TJX Cos., Inc. 13,833 437
------------
6,415
------------
Textiles Apparel & Luxury Goods (0.4%)
Coach, Inc. * 11,608 372
Jones Apparel Group, Inc. 2,653 44
Liz Claiborne, Inc. 3,182 70
Nike, Inc., Class B 12,029 743
Polo Ralph Lauren Corp. 1,864 113
VF Corp. 2,765 214
------------
1,556
------------
Thrifts & Mortgage Finance (0.7%)
Countrywide Financial Corp. 17,921 125
Fannie Mae 30,735 1,041
Freddie Mac 20,736 630
Hudson City Bancorp, Inc. 16,546 271
MGIC Investment Corp. 2,550 47
Continued
58
Equity Index
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Common Stocks, continued
Thrifts & Mortgage Finance, continued
Sovereign Bancorp, Inc. 11,180 $ 139
Washington Mutual, Inc. 27,245 543
------------
2,796
------------
Tobacco (1.5%)
Altria Group, Inc. 65,879 4,995
Reynolds American, Inc. 5,323 337
UST, Inc. 4,958 258
------------
5,590
------------
Trading Companies & Distributors (0.0%)
WW Grainger, Inc. 2,096 167
------------
Utilities (0.3%)
AES Corp. (The) * 20,802 397
Constellation Energy Group, Inc. 5,616 528
Dynegy, Inc., Class A * 15,419 108
------------
1,033
------------
Wireless Telecommunication
Services (0.4%)
American Tower Corp. * 12,781 480
Sprint Nextel Corp. 88,564 932
------------
1,412
------------
Total Common Stocks 377,158
------------
Investments in Affiliates (a) (1.2%)
Fifth Third Institutional Money
Market Fund 4,222,288 4,222
------------
Commercial Banks (0.1%)
Fifth Third Bancorp 16,667 452
------------
Total Investments in Affiliates 4,674
------------
Total Investments (Cost $162,351) - 99.9% 381,832
Other assets in excess of liabilities - 0.1% 357
------------
NET ASSETS - 100.0% $ 382,189
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
(b) Part of this security has been deposited as initial margin on open futures
contracts.
(c) All or part of this security has been designated as collateral for when
issued or delayed delivery transactions.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
Balanced
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Common Stocks (60.2%)
Aerospace & Defense (1.7%)
Alliant Techsystems, Inc. * 3,000 $ 318
Rockwell Collins, Inc. 5,300 335
------------
653
------------
Auto Components (2.3%)
BorgWarner, Inc. 7,400 375
Johnson Controls, Inc. 14,000 495
------------
870
------------
Beverages (1.2%)
PepsiCo, Inc. 6,700 457
------------
Biotechnology (0.6%)
Gilead Sciences, Inc. * 5,000 228
------------
Capital Markets (3.8%)
Ameriprise Financial, Inc. 8,000 442
Northern Trust Corp. 8,000 587
State Street Corp. 5,000 411
------------
1,440
------------
Chemicals (4.1%)
Ecolab, Inc. 8,600 415
Monsanto Co. 3,600 405
Mosaic Co. (The) * 5,500 501
Praxair, Inc. 2,800 226
------------
1,547
------------
Commercial Banks (2.3%)
Marshall & Ilsley Corp. 11,000 307
US Bancorp 16,000 543
------------
850
------------
Commercial Services & Supplies * (1.1%)
Stericycle, Inc. 7,000 415
------------
Communications Equipment (1.8%)
Cisco Systems, Inc. * 16,200 397
Nokia Corp. Oyj ADR 8,000 297
------------
694
------------
Computers & Peripherals * (2.3%)
Apple, Inc. 2,550 345
EMC Corp. 18,000 286
NCR Corp. 11,000 236
------------
867
------------
Diversified Consumer Services * (0.6%)
Apollo Group, Inc., Class A 3,000 239
------------
Diversified Financial Services (1.9%)
CME Group, Inc. 675 418
JPMorgan Chase & Co. 6,000 285
------------
703
------------
Continued
59
Balanced
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Common Stocks, continued
Diversified Telecommunication Services (1.0%)
AT&T, Inc. 10,000 $ 385
------------
Electrical Components & Equipment (0.4%)
Emerson Electric Co. 3,000 153
------------
Electronic Equipment & Instruments * (0.8%)
Mettler Toledo International, Inc. 3,000 298
------------
Energy Equipment & Service (1.7%)
Cameron International Corp. * 8,000 322
Schlumberger, Ltd. 4,000 302
------------
624
------------
Food & Staples Retailing (1.1%)
Kroger Co. (The) 16,000 407
------------
Food Products (2.1%)
Hormel Foods Corp. 9,000 349
Kellogg Co. 9,000 431
------------
780
------------
Healthcare Equipment & Supplies (2.0%)
Baxter International, Inc. 9,000 547
Becton Dickinson & Co. 2,500 216
------------
763
------------
Hotels Restaurants & Leisure (2.0%)
McDonald's Corp. 10,000 536
WMS Industries, Inc. * 6,200 232
------------
768
------------
Household Products (2.3%)
Colgate-Palmolive Co. 3,800 291
Procter & Gamble Co. 8,500 560
------------
851
------------
Industrial Conglomerates (0.7%)
General Electric Co. 8,000 283
------------
Insurance (1.9%)
Allstate Corp. (The) 8,000 394
Principal Financial Group, Inc. 5,500 328
------------
722
------------
Internet Software & Services * (0.8%)
Google, Inc., Class A 550 310
------------
Machinery (2.7%)
Deere & Co. 5,000 439
Illinois Tool Works, Inc. 7,000 353
Manitowoc Co., Inc. (The) 6,000 228
------------
1,020
------------
Multiline Retail (0.9%)
Target Corp. 6,000 333
------------
Continued
Shares Value
----------- ------------
Common Stocks, continued
Multi-Utilities (1.8%)
Wisconsin Energy Corp. 8,000 $ 364
Xcel Energy, Inc. 15,000 312
------------
676
------------
Oil & Gas (5.5%)
Apache Corp. 4,000 382
Chevron Corp. 5,100 431
ConocoPhillips 3,700 297
Consol Energy, Inc. 3,500 255
Devon Energy Corp. 5,000 425
Occidental Petroleum Corp. 4,000 271
------------
2,061
------------
Personal Products (0.6%)
Alberto-Culver Co. 8,000 214
------------
Pharmaceuticals (2.8%)
Abbott Laboratories 7,000 394
Johnson & Johnson 6,000 379
Merck & Co., Inc. 6,000 278
------------
1,051
------------
Semiconductors & Semiconductor Equipment (1.1%)
Intel Corp. 19,000 403
------------
Software (2.6%)
Microsoft Corp. 15,000 489
Oracle Corp. * 23,000 473
------------
962
------------
Specialty Retail (0.9%)
Best Buy Co., Inc. 7,000 342
------------
Textiles Apparel & Luxury Goods (0.8%)
Nike, Inc., Class B 4,700 290
------------
Total Common Stocks 22,659
------------
Principal
Amount
-----------
Asset-Backed Securities (a) (1.8%)
Home Equity Other (1.0%)
GMAC Mortgage Corp. Loan Trust,
Series 2004-HE5, Class A4, 4.34%,
9/25/34 $ 385 373
------------
Manufact Hous ABS Other (a) (0.6%)
Green Tree Financial Corp., Series
1995-4, Class M1, 7.60%, 6/15/25 233 238
------------
Other ABS (a) (b) (d) (0.2%)
Aerco, Ltd., Series 2A, Class A3,
4.70%, 7/15/25 87 73
------------
Total Asset-Backed Securities 684
------------
Continued
60
Balanced
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Corporate Bonds (0.5%)
Commercial Banks-Central U.S. (0.5%)
Bank One Capital III, 8.75%, 9/1/30 $ 175 $ 197
------------
Total Corporate Bonds 197
------------
Mortgage-Backed Securities (17.3%)
WL Collateral CMO Other (15.0%)
American Home Mortgage Investment
Trust, Series 2005-2, Class 5A4D,
5.33%, 9/25/35 1,500 1,350
Banc of America Funding Corp.,
Series 2006-G, Class 3A2, 5.75%,
7/20/36 (a) (d) 1,585 1,551
Bear Stearns Adjustable Rate
Mortgage Trust, Series 2005-12,
Class 13A1, 5.44%, 2/25/36 (a) 845 846
Chaseflex Trust, Series 2006-1,
Class A2A, 5.94%, 6/25/36 (a) 400 401
Indymac Index Mortgage Loan Trust,
Series 2005-AR9, Class 1A1, 5.52%,
7/25/35 (a) 193 199
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.84%,
2/25/35 (a) 335 337
Morgan Stanley Mortgage Loan Trust,
Series 2004-4, Class 3A, 5.00%,
8/25/19 628 634
WaMu Mortgage Pass Through
Certificates, Series 2004-AR3,
Class A2, 4.24%, 6/25/34 (a) 325 322
------------
5,640
------------
WL Collateral CMO Sequential (1.4%)
Countrywide Alternative Loan Trust,
Series 2005-J3, Class 3A1, 6.50%,
9/25/34 203 206
Countrywide Alternative Loan Trust,
Series 2005-74T1, Class A1, 6.00%,
1/25/36 340 331
------------
537
------------
WL Collateral Support (a) (d) (0.9%)
Bear Stearns Alt-A Trust, Series
2005-9, Class 21A2, 5.76%,
11/25/35 325 315
------------
Total Mortgage-Backed Securities 6,492
------------
Continued
Principal
Amount Value
----------- ------------
U.S. Government Agencies (2.6%)
Fannie Mae (1.6%)
5.50%, 4/25/37 $ 246 $ 243
6.00%, 8/25/33 (a) 363 360
------------
603
------------
Freddie Mac (0.6%)
5.50%, 3/15/35 235 236
------------
Government National Mortgage
Association, (a) (d) (0.4%)
0.55%, 4/16/46, IO 3,400 125
------------
Total U.S. Government Agencies 964
------------
Shares
-----------
Investments in Affiliates (c) (18.8%)
Fifth Third Institutional Money
Market Fund 7,077,769 7,078
------------
Total Investments in Affiliates 7,078
------------
Total Investments (Cost $35,379) - 101.2% 38,074
Liabilities in excess of other assets - (1.2%) (455)
------------
NET ASSETS - 100.0% $ 37,619
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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) Security was fair valued at January 31, 2008 using procedures approved by
the Board of Trustees.
The following abbreviations are used in the Schedule of Investments:
ADR - American Depositary Receipt
IO - Interest Only
See notes to schedules of investments
and notes to financial statements.
61
International Equity
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Foreign Stocks(b) (93.4%)
Australia (5.3%)
Australia & New Zealand Banking
Group, Ltd. 357 $ 8
BHP Billiton, Ltd. 15,291 514
BlueScope Steel, Ltd. 497,001 4,618
Coca-Cola Amatil, Ltd. 19,435 164
CSL, Ltd. 877 27
CSR, Ltd. 255,459 721
Goodman Fielder, Ltd. 1,988,271 3,039
Macquaire Group, Ltd. 46,981 2,814
Macquarie Office Trust REIT 944,985 974
Pacific Brands, Ltd. 1,515,811 3,866
Qantas Airways, Ltd. 406,195 1,723
Westfield Group REIT 35,055 592
Westpac Banking Corp. (c) 224,722 5,250
Zinifex, Ltd. 206,387 1,960
------------
26,270
------------
Austria (0.6%)
OMV AG 13,480 969
Voestalpine AG 35,920 2,214
------------
3,183
------------
Belgium (1.8%)
Delhaize Group 12,209 935
Dexia SA 169,865 4,115
Fortis 69,030 1,554
Mobistar SA 27,144 2,555
------------
9,159
------------
Bermuda (0.6%)
Orient Overseas (International), Ltd. 204,321 1,255
Pacific Basin Shipping, Ltd. 1,291,737 1,828
------------
3,083
------------
Cayman Islands (0.1%)
Kingboard Chemical Holdings, Ltd. 114,918 483
------------
Denmark (2.1%)
Danske Bank A/S 111,142 3,982
East Asiatic Co., Ltd. 23,743 1,711
Novo Nordisk A/S, Class B 74,601 4,687
------------
10,380
------------
Finland (1.4%)
Nokia Oyj 65,110 2,395
Orion Oyj, Class B 8,068 181
Outokumpu Oyj 118,128 3,727
YIT Oyj 33,546 708
------------
7,011
------------
Continued
Shares Value
----------- ------------
Foreign Stocks, continued
France (7.8%)
AXA SA(c) 138,828 $ 4,760
Bouygues 18,838 1,451
Carrefour SA 16,487 1,160
Casino Guichard Perrachon SA 1,803 199
Cie de Saint-Gobain 4,457 349
CNP Assurances 11,302 1,376
Compagnie Generale des
Etablissements Michelin 11,200 1,075
Credit Agricole SA 135,483 4,173
France Telecom SA (c) 162,334 5,733
Legrand SA 113,412 3,467
Natixis 91,447 1,557
Peugeot SA 7,711 569
Sanofi-Aventis SA 22,296 1,816
Schneider Electric SA 15,728 1,824
Societe Generale 21,691 2,691
Total SA 41,583 3,016
Unibail-Rodamco REIT 4,358 1,034
Vinci SA 32,838 2,240
------------
38,490
------------
Germany (7.1%)
Allianz SE 18,291 3,294
BASF SE (c) 43,936 5,753
Bayerische Motoren Werke AG 69,526 3,846
Deutsche Bank AG(c) 39,975 4,518
Deutsche Lufthansa AG 149,986 3,597
E.ON AG 5,001 919
Muenchener Rueckversicherungs AG 18,655 3,370
RWE AG 25,081 3,076
Salzgitter AG 4,563 719
Siemens AG 6,544 848
ThyssenKrupp AG 81,995 4,027
Volkswagen AG 2,697 611
Wincor Nixdorf AG 11,365 874
------------
35,452
------------
Great Britain (17.4%)
Antofagasta PLC 277,925 3,649
AstraZeneca PLC (c) 137,322 5,728
Aviva PLC 35,419 444
Barclays PLC 200,351 1,889
BHP Billiton PLC 64,166 1,902
BP PLC 390,830 4,146
British American Tobacco PLC 88,866 3,183
BT Group PLC 76,972 400
Firstgroup PLC 160,874 2,113
GlaxoSmithKline PLC 61,526 1,452
HBOS PLC 312,732 4,319
Home Retail Group PLC 97,220 552
HSBC Holdings PLC 208,701 3,129
Investec PLC 146,381 1,236
J Sainsbury PLC 490,589 3,899
Kesa Electricals PLC 880,562 4,235
Lloyds TSB Group PLC 605,975 5,335
Marks & Spencer Group PLC 281,083 2,480
Continued
62
International Equity
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Foreign Stocks, continued
Great Britain, continued
National Express Group PLC 67,821 $ 1,583
National Grid PLC 86,746 1,334
Next PLC 121,836 3,433
Old Mutual PLC 1,324,618 3,301
Persimmon PLC 16,260 251
Rentokil Initial PLC 40,709 88
Rio Tinto PLC 91 9
Schroders PLC 26,013 567
Scotish & Newcastle PLC 58,432 913
Scottish & Southern Energy PLC 61,404 1,866
Shire PLC 47,975 855
Smith & Nephew PLC 119,503 1,630
Stagecoach Group PLC 312,813 1,496
Tate & Lyle PLC 450,291 4,381
Tomkins PLC 1,076,836 3,763
Trinity Mirror PLC 82,545 538
Unilever PLC 43,567 1,431
United Utilities PLC 275,978 3,935
Vodafone Group PLC 988,611 3,470
William Hill PLC 86,188 699
------------
85,634
------------
Greece (0.8%)
Alpha Bank AE 120,200 3,996
------------
Hong Kong (2.2%)
ASM Pacific Technology 265,869 1,535
BOC Hong Kong Holdings, Ltd. 1,539,978 3,871
CLP Holdings, Ltd. 19,186 153
Esprit Holdings, Ltd. 100,290 1,300
Hopewell Holdings 904,930 3,973
Link (The) REIT 1 1
------------
10,833
------------
Ireland (0.7%)
Bank of Ireland 235,197 3,462
------------
Italy (3.0%)
Enel SpA 372,991 4,161
ENI SpA (c) 170,184 5,485
Intesa Sanpaolo SpA 22,232 159
Italcementi SpA 48,917 695
Mediaset SpA 401,445 3,540
Prysmian SpA * 37,142 745
------------
14,785
------------
Japan (20.9%)
Aeon Credit Service Co., Ltd. 111,900 1,674
Aisin Seiki Co., Ltd 75,900 3,071
Alps Electric Co., Ltd. 272,100 3,138
Asahi Breweries, Ltd. 35,500 633
Asahi Kasei Corp. 138,000 843
Astellas Pharma, Inc. 9,700 420
Bridgestone Corp. 47,500 806
Canon, Inc. 53,700 2,318
Circle K Sunkus Co., Ltd. 800 12
Continued
Shares Value
----------- ------------
Foreign Stocks, continued
Japan, continued
Dai Nippon Printing Co., Ltd. 95,600 $ 1,383
Daicel Chemical Industries, Ltd. 7,000 39
Daiwa House Industry Co., Ltd. 72,600 1,014
Fujitsu, Ltd. 636,000 4,118
Glory, Ltd. 11,900 243
Hino Motors, Ltd. 105,000 724
Hokkaido Electric Power Co., Inc. 5,800 127
Honda Motor Co., Ltd. 148,851 4,696
Ibiden Co., Ltd. 5,800 375
Itochu Corp. 71,000 651
JFE Holdings, Inc. 93,500 4,327
Kansai Electric Power Co.,
Inc. (The) 102,500 2,565
Kawasaki Kisen Kaisha, Ltd. 82,000 794
KDDI Corp. 59 399
Kobe Steel, Ltd. 341,000 1,141
Kyushu Electric Power Co., Inc. 15,300 387
Lawson, Inc. 8,400 299
Leopalace21 Corp. 96,400 2,329
Mitsubishi Corp. 188,300 4,936
Mitsubishi Tanabe Pharma Corp. 257,000 3,123
Mitsubishi UFJ Lease & Finance
Co., Ltd. 60,770 2,257
Mitsui & Co., Ltd. 184,800 3,804
Mitsui Chemicals, Inc. 593,000 3,971
Mitsui Mining & Smelting Co., Ltd. 257,000 966
Nippon Mining Holdings, Inc. 201,500 1,183
Nippon Oil Corp. 76,600 519
Nippon Steel Corp. 210,800 1,268
Nippon Telegraph & Telephone Corp. 987 4,723
Nippon Yusen KK 24,000 196
Nissan Motor Co., Ltd. 445,900 4,280
NOK Corp. 67,200 1,361
NTN Corp. 446,000 3,229
NTT DoCoMo, Inc. 2,910 4,579
NTT Urban Development 79 125
Olympus Corp. 16,000 536
Ricoh Co., Ltd. 126,000 1,968
Sekisui House, Ltd. 17,600 195
Shinko Securities Co., Ltd. 459,000 1,778
Sompo Japan Insurance, Inc. 125,000 1,132
Sumitomo Corp. 58,800 813
Sumitomo Metal Mining Co., Ltd. 28,600 481
Sumitomo Rubber Industries, Ltd. 13,200 116
Takefuji Corp. 11,440 324
TDK Corp. 56,100 3,584
Tokyo Electric Power Co., Inc. (The) 29,000 753
Toshiba Corp. 249,000 1,684
Tosoh Corp. 902,000 3,772
Toyota Boshoku Corp. 7,100 215
Toyota Motor Corp.(c) 105,200 5,724
Trend Micro, Inc. * 1,200 43
Urban Corp. 70,900 655
------------
102,819
------------
Continued
63
International Equity
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Foreign Stocks, continued
Netherlands (5.3%)
Ahold (Kon) NV * 80,240 $ 1,048
Heineken Holding NV 68,949 3,514
ING Groep NV (c) 167,776 5,462
Koninklijke DSM NV 83,677 3,537
Royal Dutch Shell PLC, A Shares (c) 172,285 6,136
Royal Dutch Shell PLC, B Shares (c) 141,386 4,891
Royal KPN NV 89,536 1,625
Unilever NV 3,545 115
------------
26,328
------------
Norway (1.8%)
Aker Kvaerner ASA 56,051 1,046
DnB NOR ASA 272,258 3,555
StatoilHydro ASA (c) 174,265 4,556
------------
9,157
------------
Portugal (0.8%)
Banco Espirito Santo SA 3,722 65
Portugal Telecom SGPS SA 308,190 3,973
------------
4,038
------------
Singapore (1.0%)
Neptune Orient Lines, Ltd. 890,000 2,048
Singapore Airlines, Ltd. 42,270 466
Singapore Petroleum Co., Ltd. 511,000 2,276
SMRT Corp., Ltd. 126,000 154
------------
4,944
------------
Spain (5.2%)
Banco Bilbao Vizcaya Argentaria SA 133,626 2,819
Banco Santander Central Hispano
SA (c) 405,633 7,115
Gestevision Telecinco SA 145,812 3,120
Repsol YPF SA 115,647 3,688
Telefonica SA (c) 274,641 8,042
Union Fenosa SA 13,466 897
------------
25,681
------------
Sweden (1.6%)
Alfa Laval AB 10,244 551
Boliden AB NPV 36,581 329
Kungsleden AB 181,169 1,965
Nordea Bank AB 305,861 4,141
Volvo AB, B Shares 62,804 839
------------
7,825
------------
Continued
Shares Value
----------- ------------
Foreign Stocks, continued
Switzerland (5.9%)
ABB, Ltd. 3,384 $ 85
Actelion, Ltd. * 12,933 646
Adecco SA 9,106 477
Holcim, Ltd. 43,608 4,221
Nestle SA (c) 16,365 7,314
Novartis AG 16,102 815
Rieter Holdings AG 4,847 1,758
Roche Holding AG 14,506 2,628
STMicroelectronics NV 278,036 3,474
Swiss Reinsurance 65,891 4,936
Swisscom AG 1,174 468
Zurich Financial Services AG 8,082 2,303
------------
29,125
------------
Total Foreign Stocks 462,138
------------
Investment Companies (0.9%)
United States (0.9%)
iShares MSCI EAFE Index Fund 60,600 4,381
------------
Total Investment Companies 4,381
------------
Investments in Affiliates (a) (4.2%)
United States (4.2%)
Fifth Third Institutional Money
Market Fund 20,861,585 20,862
------------
Total Investments in Affiliates 20,862
------------
Preferred Stocks (b) (0.8%)
Germany (0.5%)
RWE AG 9,462 999
Volkswagen AG 10,124 1,409
------------
2,408
------------
Italy (0.3%)
Unipol Gruppo Finanziario SpA 616,807 1,626
------------
Total Preferred Stocks 4,034
------------
Continued
64
International Equity
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
--------- ------------
Rights (b) (0.0%)
Japan (0.0%)
Dowa Holdings Co., Ltd. * 28,000 $ --#
------------
Total Rights --
------------
Total Investments (Cost $484,252) - 99.3% 491,415
Other assets in excess of liabilities - 0.7% 3,358
------------
NET ASSETS - 100.0% $ 494,773
============
Notes to Schedule of Investments
* Non-income producing security.
# Amount is less than $500.
(a) Investment is in Institutional Shares of underlying fund.
(b) The Fund's securities were fair valued at January 31, 2008 using
procedures approved by the Board of Trustees.
(c) All or part of this security has been designated as collateral for when
issued or delayed delivery transactions.
The following abbreviation is used in the Schedule of Investments:
REIT - Real Estate Investment Trust
Continued
Investment concentration as a percentage of net assets, by industry:
Basic Materials 7.9%
Brewery 0.9%
Building&Construct-Misc 0.1%
Building-Heavy Construct 0.7%
Building-Residential/Commercial 0.1%
Capital Markets --^
Cash & Cash Equivalents 4.2%
Cellular Telecom 0.7%
Chemicals-Diversified 0.7%
Commercial Banks Non-U.S. 2.0%
Commercial Services --^
Commercial Services & Supplies 0.3%
Communications 6.5%
Computers 0.2%
Consumer Products-Miscellaneous 0.8%
Consumer, Cyclical 10.6%
Consumer, Non-cyclic 1.2%
Divers Operator/Commercial Services --^
Diversified Financial Services 0.2%
Diversified Manufacturing Operations 0.8%
Diversified Minerals 1.1%
Electric Products-Miscellaneous 0.7%
Electric-Integrated 0.4%
Electric-Transmission 0.3%
Energy 3.8%
Equity Fund 0.9%
Finance-Investment Banker/Broker 0.6%
Financial 21.2%
Food & Staples Retailing 0.5%
Food/Beverage/Tobacco 1.6%
Food-Misc/Diversified 0.9%
Food-Retail 0.8%
Industrials 6.4%
Investment Management/Advisor Services 0.1%
Life/Health Insurance 0.8%
Machinery 0.2%
Medical Products 0.3%
Medical-Drugs 1.8%
Metal-Diversified 0.5%
Oil Company-Integrated 3.7%
Pharmaceuticals 2.1%
Pharmaceuticals & Biotechnology --^
Property Trust 0.1%
Publishing-Newspapers 0.1%
Real Estate Management/Services 0.4%
Real Estate Operations/Development --^
Reits-Shopping Centers --^
Retail 0.1%
Sugar 0.9%
Technology 3.4%
Telecommunication Services 0.6%
Television 1.3%
Tobacco 0.6%
Transport-Marine 0.4%
Transport-Services 1.0%
Utilities 2.8%
Water 0.8%
Wire & Cable Products 0.2%
__^ Amount is less than 0.05%.
See notes to schedules of investments
and notes to financial statements.
65
Strategic Income
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
--------- ------------
Asset-Backed Securities (2.5%)
Automobile ABS Other (0.8%)
Susquehanna Auto Lease Trust, Series
2007-1, Class B, 5.31%, 7/14/10 (b) $ 1,000 $ 993
------------
Credit Card Bullet (0.4%)
Citibank Credit Card Issuance Trust,
Series 2003-A3, Class A3, 3.10%,
3/10/10 500 500
------------
Other ABS (1.3%)
Aerco, Ltd., Series 2A, Class A3,
4.70%, 7/15/25 (a) (b) (d) 953 801
Residential Asset Securities Corp.,
Series 2006-KS3, Class AI3, 3.55%,
4/25/36 (a) 1,000 953
------------
1,754
------------
Total Asset-Backed Securities 3,247
------------
Corporate Bonds (23.2%)
Banks (0.4%)
RBS Capital Trust B, 6.80%, 12/31/49 (f) 500 476
------------
Beverages-Non Alcoholic (0.4%)
PepsiCo, Inc., 4.65%, 2/15/13 500 519
------------
Cable TV (2.0%)
Comcast Cable Communications LLC,
7.13%, 6/15/13 500 541
COX Communications, Inc., 7.75%,
11/1/10 1,000 1,083
Time Warner Cable, Inc., 5.40%, 7/2/12 1,000 1,015
------------
2,639
------------
Commercial Banks-Eastern U.S. (0.7%)
Emigrant Capital Trust, 6.44%,
12/10/33 (a) (b) 1,000 981
------------
Commercial Banks-Southern U.S. (1.5%)
First Tennessee Capital II, Series B,
6.30%, 4/15/34 1,500 1,400
Union Planters Corp., 4.38%, 12/1/10 500 502
------------
1,902
------------
Computers (0.8%)
International Business Machines
Corp., 4.95%, 3/22/11 1,000 1,035
------------
Electric-Integrated (1.1%)
FPL Group Capital, Inc., Series C,
6.65%, 6/15/67 (a) 1,000 941
Public Service Co. of Oklahoma,
Series C, 4.85%, 9/15/10 500 513
------------
1,454
------------
Continued
Principal
Amount Value
--------- ------------
Corporate Bonds, continued
Finance-Commercial (0.8%)
CIT Group, Inc., 4.00%, 5/8/08 $ 1,000 $ 996
------------
Finance-Consumer Loans (2.1%)
American General Finance Corp.,
5.75%, 9/15/16 1,000 954
SLM Corp., Series CPI, 4.66%,
4/1/09 (a) (e) 1,000 920
SLM Corp., Series CPI, 5.66%,
11/21/13 (a) (e) 1,000 837
------------
2,711
------------
Finance-Investment Banker/Broker (2.0%)
Bear Stearns Cos., Inc. (The), 4.65%,
7/2/18 1,000 832
Lehman Brothers Holdings Capital
Trust V, 5.86%, 11/29/49 (a) (f) 1,000 773
Lehman Brothers Holdings, Inc.,
3.98%, 10/22/08 (a) 1,000 988
------------
2,593
------------
Finance-Leasing Company (0.8%)
International Lease Finance Corp.,
Series O, 4.38%, 11/1/09 1,000 1,007
------------
Finance-Mortgage Loan/Banker (0.1%)
Countrywide Home Loans, Inc., 5.63%,
7/15/09 100 92
------------
Finance-Other Services (0.7%)
Cullen Frost Cap Trust I, Series A,
6.67%, 3/1/34 (a) 1,000 938
------------
Financial Guarantee Insurance (0.6%)
Radian Group, Inc., 5.63%, 2/15/13 1,000 761
------------
Food-Misc/Diversified (1.6%)
Kellogg Co., 5.13%, 12/3/12 500 516
Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,576
------------
2,092
------------
Insurance Brokers (0.3%)
Marsh & McLennan Cos., Inc, 5.88%,
8/1/33 500 439
------------
Money Center Banks (0.9%)
Bankers Trust Corp., 7.25%, 10/15/11 1,000 1,121
------------
Multimedia (1.7%)
Time Warner Entertainment Co. LP,
8.88%, 10/1/12 1,500 1,702
Walt Disney Co. (The), 4.70%,
12/1/12 500 511
------------
2,213
------------
Continued
66
Strategic Income
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
--------- ------------
Corporate Bonds, continued
Oil Company-Exploration
& Production (0.7%)
Pemex Project Funding Master Trust,
7.88%, 2/1/09 $ 810 $ 842
------------
REIT-Shopping Centers (0.8%)
Developers Diversified Realty Corp.,
3.88%, 1/30/09 1,000 979
------------
Retail-Drug Store (0.6%)
CVS Caremark Corp., 7.77%, 1/10/12 (b) 747 799
------------
Special Purpose Entity (0.8%)
HVB Funding Trust I, 8.74%, 6/30/31 (b) 1,000 1,045
------------
Super-Regional Banks-U.S. (1.1%)
Bank of America Corp., 8.00%,
12/29/49 (a) (f) 400 415
Wells Fargo Bank NA, 5.95%, 8/26/36 1,000 981
------------
1,396
------------
Transport-Rail (0.4%)
Union Pacific Corp., 3.63%, 6/1/10 500 495
------------
Wireless Equipment (0.3%)
Motorola, Inc., 6.50%, 11/15/28 500 436
------------
Total Corporate Bonds 29,961
------------
Foreign Bonds (7.5%)
Commercial Banks Non-U.S. (1.4%)
HBOS PLC, 5.38%, 12/29/49 (a) (b) (f) 2,000 1,854
------------
Diversified Operations (0.8%)
Hutchison Whampoa International,
Ltd., 6.50%, 2/13/13 (b) 1,000 1,061
------------
Investment Managment/Advisor
Services (0.4%)
Invesco PLC, 5.38%, 2/27/13 500 495
------------
Multi-Line Insurance (0.7%)
AXA SA, 6.46%, 12/31/49 (a) (b) (f) 1,000 871
------------
Sovereign (3.4%)
Australia Government Bond, Series
909, 7.50%, 9/15/09 AUD 3,000 2,723
Mexico Government International Bond,
Series A, 6.75%, 9/27/34 $ 1,000 1,084
Russia Government International Bond,
8.25%, 3/31/10 (b) 556 581
------------
4,388
------------
Special Purpose Banks (0.8%)
Korea Development Bank, 3.88%, 3/2/09 1,000 999
------------
Total Foreign Bonds 9,668
------------
Continued
Principal
Amount Value
--------- ------------
Mortgage-Backed Securities (6.5%)
CMBS Other (1.6%)
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD5 A2,
5.66%, 11/15/44 (d) $ 1,000 $ 1,047
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%,
8/10/38 1,000 999
------------
2,046
------------
WL Collateral CMO Other (3.4%)
Bear Stearns Asset Backed Securities
Trust, Series 2003-AC7, Class A2,
5.25%, 1/25/34 586 585
Countrywide Home Loan Mortgage Pass
Through Trust, Series 2003-48, Class
2A3, 4.58%, 10/25/33 (a) 1,233 1,215
Countrywide Home Loan Mortgage Pass
Through Trust, Series 2004-HYB5,
Class 4A1, 5.01%, 4/20/35 (a) 368 371
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A,
6.06%, 12/25/32 (a) 45 45
WaMu Mortgage Pass Through
Certificates, Series 2003-AR10, Class
A4, 4.06%, 10/25/33 (a) 212 212
Wells Fargo Mortgage Backed
Securities Trust, Series 2004-X,
Class 1A5, 4.93%, 11/25/34 (a) 1,000 992
Wells Fargo Mortgage Backed
Securities Trust, Series 2005-AR10,
Class 2A14, 4.11%, 6/25/35 (a) 1,000 1,008
------------
4,428
------------
WL Collateral CMO Sequential (1.5%)
JP Morgan Mortgage Trust, Series
2006-A3, Class 2A1, 5.62%,
5/25/36 (a) 969 985
JP Morgan Mortgage Trust, Series
2007-A2, Class 4A1M, 5.80%,
4/25/37 (a) 918 923
------------
1,908
------------
Total Mortgage-Backed Securities 8,382
------------
U.S. Government Agencies (5.2%)
Fannie Mae (1.2%)
5.13%, 1/2/14 1,000 1,056
4.23%, 7/1/18 (a) 477 479
------------
1,535
------------
Freddie Mac (2.3%)
6.50%, 9/1/22 962 995
5.00%, 9/15/25 859 871
7.23%, 10/1/32 (a) 176 179
4.85%, 1/1/37 (a) 979 996
------------
3,041
------------
Continued
67
Strategic Income
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
--------- ------------
U.S. Government Agencies, continued
Government National Mortgage
Association (1.7%)
5.47%, 8/16/27 (a) $ 1,150 $ 1,204
4.89%, 7/16/34 1,000 1,004
------------
2,208
------------
Total U.S. Government Agencies 6,784
------------
U.S. Treasury Obligations (0.8%)
U.S. Treasury Notes (0.8%)
4.25%, 11/15/17 1,000 1,050
------------
Total U.S. Treasury Obligations 1,050
------------
Shares
---------
Common Stocks (5.7%)
Beverages (0.3%)
Diageo PLC ADR 4,200 339
PepsiCo, Inc. 1,100 75
------------
414
------------
Commercial Banks (1.0%)
US Bancorp 11,600 394
Wachovia Corp. 6,275 244
Wells Fargo & Co. 18,390 625
------------
1,263
------------
Diversified Financial Services (0.4%)
Bank of America Corp. 11,500 510
------------
Electric Utilities (0.7%)
Duke Energy Corp. 14,900 278
Entergy Corp. 2,750 298
Southern Co. 8,700 316
------------
892
------------
Food Products (0.2%)
Kraft Foods, Inc., Class A 8,974 263
------------
Industrial Conglomerates (0.2%)
General Electric Co. 6,335 224
------------
Multi-Utilities (0.3%)
Wisconsin Energy Corp. 8,300 378
------------
Oil & Gas (0.5%)
Chevron Corp. 5,030 425
Spectra Energy Corp. 7,500 171
------------
596
------------
Pharmaceuticals (0.4%)
Merck & Co., Inc. 11,600 537
------------
Continued
Shares Value
--------- ------------
Common Stocks, continued
REIT - Storage (0.2%)
Public Storage 12,000 $ 300
------------
REIT - Health Care (0.2%)
HCP, Inc. 7,650 233
------------
REIT - Shopping Centers (0.4%)
Kimco Realty Corp. 8,550 306
Weingarten Realty Investors 7,025 236
------------
542
------------
REIT - Diversified (0.2%)
Vornado Realty Trust 2,800 253
------------
Tobacco (0.7%)
Altria Group, Inc. 12,850 974
------------
Total Common Stocks 7,379
------------
Investment Companies (7.1%)
Closed-End Funds (6.6%)
American Income Fund, Inc. 135,400 1,095
BlackRock Income Opportunity
Trust, Inc. 225,000 2,277
ING Prime Rate Trust 160,400 974
MFS Government Markets Income Trust 51,484 360
Rivus Bond Fund 127,000 2,299
Templeton Global Income Fund 61,374 564
Van Kampen Senior Income Trust 152,000 1,023
------------
8,592
------------
Non-Proprietary Equity Funds (0.5%)
Eaton Vance Tax-Advantaged Dividend
Income Fund 23,600 611
------------
Total Investment Companies 9,203
------------
Preferred Stocks (38.2%)
Cable TV (0.9%)
Comcast Corp., Series B, 7.00% 50,000 1,214
------------
Commercial Banks-Eastern U.S. (1.1%)
HSBC USA, Inc., Series G, 5.48% (a) 60,000 1,385
------------
Commercial Banks Non-U.S. (0.9%)
Barclays Bank PLC, Series 2, 6.63% 46,900 1,162
------------
Diversified Financial Services (4.5%)
Citigroup Capital VII, 7.13% 124,925 3,104
General Electric Capital Corp.,
6.10% 19,000 477
General Electric Capital Corp.,
6.63% 59,000 1,496
Harris Preferred Capital Corp.,
Series A, 7.38% * 31,800 793
------------
5,870
------------
Continued
68
Strategic Income
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Preferred Stocks, continued
Electric-Integrated (2.1%)
Entergy Arkansas, Inc., 6.00% 80,600 $ 1,980
Entergy Mississippi, Inc., 6.00% 29,300 734
------------
2,714
------------
Finance-Commercial (0.9%)
Source Capital Corp., 2.40% * 35,600 1,179
------------
Finance-Consumer Loans (0.6%)
HSBC Finance Corp., 6.88% 32,800 800
------------
Finance-Credit Card (0.7%)
MBNA Capital D, Series D, 8.13% 37,800 962
------------
Finance-Investment Banker/
Broker (4.1%)
Bear Stearns Capital Trust III,
7.80% 58,900 1,467
Goldman Sachs Group, Inc. (The),
Series A, 5.63% * (a) 40,000 888
Lehman Brothers Holdings, Inc.,
Series G, 4.99%(a) 50,000 1,036
Merrill Lynch & Co., Inc., Series
G, 5.80% (a) 80,000 1,479
Merrill Lynch Preferred Capital
Trust III, 7.00% 9,800 240
Morgan Stanley Capital Trust VIII,
6.45% 10,800 250
------------
5,360
------------
Financial Guarantee Insurance (1.6%)
Financial Security Assurance
Holdings, Ltd., 6.25% 90,750 2,013
------------
Life/Health Insurance (0.4%)
AAG Holding Co., Inc., 7.25% 20,000 470
------------
Miscellaneous (0.5%)
Duke Realty Corp., Series L, 6.60% * 30,000 668
------------
Multi-Line Insurance (2.3%)
Aegon NV, Series 1, 5.87% (a) 51,900 1,039
ING Groep NV, 7.20% 41,200 1,024
MetLife, Inc., Series A, 5.99% (a) 40,000 874
------------
2,937
------------
Real Estate (0.8%)
Realty Income Corp.,
Series E, 6.75% * 50,000 1,082
------------
REIT-Diversified (0.2%)
Duke Realty Corp., Series M, 6.95% * 10,000 237
------------
REIT-Mortgage (0.3%)
Huntington Preferred Capital, Inc.,
7.88% 15,507 402
------------
Continued
Shares Value
---------- ------------
Preferred Stocks, continued
REIT-Office Property (0.3%)
HRPT Properties Trust,
Series B, 8.75% * 13,358 $ 333
------------
REIT-Regional Malls (0.3%)
CBL & Associates Properties, Inc.,
7.38% * 20,500 426
------------
REIT-Shopping Centers (1.5%)
Kimco Realty Corp.,
Series F, 6.65% * 39,994 920
Kimco Realty Corp., Series G,
7.75% * 40,000 994
------------
1,914
------------
REIT-Storage (2.0%)
Public Storage, Series L, 6.75% 30,000 696
Public Storage, Series M, 6.63% * 40,000 910
Public Storage, Series N, 7.00% 40,000 952
------------
2,558
------------
S&L/Thrifts-Southern U.S. (0.4%)
BBC Capital Trust II, 8.50% 31,000 504
------------
Semiconductors & Semiconductor
Equipment (0.6%)
First Tennessee Bank NA, 5.36% (a) (b) 1,000 746
------------
Sovereign Agency (3.8%)
Fannie Mae, 7.63% 40,000 1,042
Fannie Mae, 8.25% 40,000 1,057
Freddie Mac, 5.00% 20,000 750
Freddie Mac, 5.70% 25,500 1,109
Freddie Mac, 8.38% 20,000 537
Freddie Mac, Series H, 5.10% 10,000 388
------------
4,883
------------
Special Purpose Entity (1.9%)
Corporate-Backed Trust Certificates
(CBTCS), Series AIG, 6.13% 60,000 1,327
Corporate-Backed Trust Certificates
(CBTCS), Series HSBC, 6.25% 33,500 760
CORTS Trust for Sherwin-Williams,
Series III, 7.25% 17,600 437
------------
2,524
------------
Super-Regional Banks-U.S. (5.5%)
BAC Capital Trust I, 7.00% 64,500 1,606
BAC Capital Trust III, 7.00% 48,600 1,229
US Bancorp, Series B, 4.86% (a) 20,000 440
USB Capital XII, 6.30% 40,000 960
Wachovia Corp., Series A, 7.25% * 84,500 2,140
Wells Fargo Capital VII, 5.85% 33,500 767
------------
7,142
------------
Total Preferred Stocks 49,485
------------
Continued
69
Strategic Income
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Investments in Affiliates (c)(3.0%)
Fifth Third Institutional Money
Market Fund 3,819,195 $ 3,819
------------
Total Investments in Affiliates 3,819
------------
Total Investments (Cost $132,424) - 99.7% 128,978
Other assets in excess of liabilities - 0.3% 430
------------
NET ASSETS - 100.0% $ 129,408
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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) Security was fair valued at January 31, 2008 using procedures approved by
the Board of Trustees.
(e) 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.
(f) Perpetual Maturity. Callable any time after first call date. Maturity date
is next call date.
The following abbreviations are used in the Schedule of Investments:
ADR - American Depositary Receipt
AUD - Australian Dollar
CBTCS - Corporate-Backed Trust Certificate
CORTS - Corporate-Backed Trust Security
REIT - Real Estate Investment Trust
See notes to schedules of investments
and notes to financial statements.
LifeModel Aggressive(SM)
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Investments in Affiliates (a) (99.9%)
Fifth Third All Cap Value Fund 563,227 $ 11,281
Fifth Third Disciplined Large Cap
Value Fund 1,808,964 22,847
Fifth Third High Yield Bond Fund 61,443 581
Fifth Third Institutional Money
Market Fund 731,905 732
Fifth Third International Equity Fund 2,975,204 39,957
Fifth Third Mid Cap Growth Fund* 1,336,301 16,931
Fifth Third Quality Growth Fund 2,400,720 39,636
Fifth Third Short Term Bond Fund 339,688 3,234
Fifth Third Small Cap Growth Fund* 816,679 6,672
Fifth Third Small Cap Value Fund 286,232 4,763
Fifth Third Structured Large Cap
Plus Fund 1,735,493 27,438
Fifth Third Total Return Bond Fund 801,082 7,899
------------
Total Investments in Affiliates 181,971
------------
Total Investments (Cost $169,364) - 99.9% 181,971
Other assets in excess of liabilities - 0.1% 109
------------
NET ASSETS - 100.0% $ 182,080
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
See notes to schedules of investments
and notes to financial statements.
70
LifeModel Moderately Aggressive(SM)
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Investments in Affiliates (a) (100.1%)
Fifth Third All Cap Value Fund 754,470 $ 15,112
Fifth Third Disciplined Large Cap
Value Fund 2,402,380 30,342
Fifth Third High Yield Bond Fund 452,823 4,279
Fifth Third Institutional Money
Market Fund 278,866 279
Fifth Third International Equity Fund 3,972,846 53,355
Fifth Third Mid Cap Growth Fund* 1,802,067 22,832
Fifth Third Quality Growth Fund 3,190,437 52,674
Fifth Third Short Term Bond Fund 2,426,831 23,104
Fifth Third Small Cap Growth Fund* 1,079,763 8,822
Fifth Third Small Cap Value Fund 376,044 6,257
Fifth Third Structured Large Cap
Plus Fund 2,350,346 37,159
Fifth Third Total Return Bond Fund 5,983,013 58,993
------------
Total Investments in Affiliates 313,208
------------
Total Investments (Cost $290,072) - 100.1% 313,208
Liabilities in excess of other assets - (0.1)% (424)
------------
NET ASSETS - 100.0% $ 312,784
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
See notes to schedules of investments
and notes to financial statements.
LifeModel Moderate(SM)
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Investments in Affiliates (a) (100.1%)
Fifth Third All Cap Value Fund 834,381 $ 16,713
Fifth Third Disciplined Large Cap
Value Fund 2,769,405 34,978
Fifth Third High Yield Bond Fund 1,174,997 11,104
Fifth Third Institutional Money
Market Fund 1,868,203 1,868
Fifth Third International Equity
Fund 4,354,172 58,476
Fifth Third Mid Cap Growth Fund* 1,963,132 24,873
Fifth Third Quality Growth Fund 3,595,043 59,354
Fifth Third Short Term Bond Fund 6,572,352 62,569
Fifth Third Small Cap Growth Fund* 1,126,943 9,207
Fifth Third Small Cap Value Fund 385,607 6,416
Fifth Third Structured Large Cap
Plus Fund 2,366,658 37,417
Fifth Third Total Return Bond Fund 16,018,929 157,947
------------
Total Investments in Affiliates 480,922
------------
Total Investments (Cost $467,298) - 100.1% 480,922
Liabilities in excess of other assets - (0.1)% (391)
------------
NET ASSETS - 100.0% $ 480,531
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
See notes to schedules of investments
and notes to financial statements.
71
LifeModel Moderately Conservative(SM)
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Investments in Affiliates (a) (100.1%)
Fifth Third All Cap Value Fund 128,186 $ 2,567
Fifth Third Disciplined Large Cap
Value Fund 377,669 4,770
Fifth Third High Yield Bond Fund 283,582 2,680
Fifth Third Institutional Money
Market Fund 317,413 317
Fifth Third International Equity
Fund 632,586 8,496
Fifth Third Mid Cap Growth Fund* 300,370 3,806
Fifth Third Quality Growth Fund 522,693 8,630
Fifth Third Short Term Bond Fund 1,533,055 14,595
Fifth Third Small Cap Growth Fund* 182,524 1,491
Fifth Third Small Cap Value Fund 69,802 1,161
Fifth Third Structured Large Cap
Plus Fund 454,011 7,178
Fifth Third Total Return Bond Fund 3,753,320 37,008
------------
Total Investments in Affiliates 92,699
------------
Total Investments (Cost $88,426) - 100.1% 92,699
Liabilities in excess of other assets - (0.1)% (108)
------------
NET ASSETS - 100.0% $ 92,591
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
See notes to schedules of investments
and notes to financial statements.
LifeModel Conservative(SM)
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
---------- ------------
Investments in Affiliates (a) (99.9%)
Fifth Third All Cap Value Fund 39,375 $ 789
Fifth Third Disciplined Large Cap
Value Fund 131,039 1,655
Fifth Third High Yield Bond Fund 211,642 2,000
Fifth Third Institutional Money
Market Fund 816,780 817
Fifth Third International Equity
Fund 182,386 2,449
Fifth Third Mid Cap Growth Fund* 93,307 1,182
Fifth Third Quality Growth Fund 179,448 2,963
Fifth Third Short Term Bond Fund 1,164,145 11,083
Fifth Third Small Cap Growth Fund* 57,753 472
Fifth Third Small Cap Value Fund 20,517 341
Fifth Third Structured Large Cap
Plus Fund 141,426 2,236
Fifth Third Total Return Bond Fund 2,832,408 27,927
------------
Total Investments in Affiliates 53,914
------------
Total Investments (Cost $53,743) - 99.9% 53,914
Other assets in excess of liabilities - 0.1% 63
------------
NET ASSETS - 100.0% $ 53,977
============
Notes to Schedule of Investments
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
See notes to schedules of investments
and notes to financial statements.
72
High Yield Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Corporate Bonds (82.8%)
Aerospace (0.5%)
DRS Technologies, Inc., 6.63%, 2/1/16 $ 256 $ 250
------------
Automotive & Auto Parts (8.5%)
American Axle & Manufacturing, Inc.,
7.88%, 3/1/17 708 635
Asbury Automotive Group, Inc., 8.00%,
3/15/14 750 667
Asbury Automotive Group, Inc., 7.63%,
3/15/17 18 15
AutoNation, Inc., 7.00%, 4/15/14 112 100
Ford Motor Credit Co. LLC, 7.88%,
6/15/10 875 824
Ford Motor Credit Co. LLC, 8.00%,
12/15/16 601 505
GMAC LLC, 6.88%, 9/15/11 750 656
GMAC LLC, 8.00%, 11/1/31 750 621
Penske Auto Group, Inc., 7.75%,
12/15/16 548 490
------------
4,513
------------
Basic Materials (0.4%)
Steel Dynamics, Inc., 6.75%, 4/1/15 221 214
------------
Broadcasting (1.7%)
Clear Channel Communications, Inc.,
4.25%, 5/15/09 342 323
Fisher Communications, Inc., 8.63%,
9/15/14 504 509
Radio One, Inc., Series B, 8.88%,
7/1/11 72 64
------------
896
------------
Building Materials (4.0%)
Gibraltar Industries, Inc., Series B,
8.00%, 12/1/15 750 630
Texas Industries, Inc., 7.25%, 7/15/13 705 677
US Concrete, Inc., 8.38%, 4/1/14 1,000 830
------------
2,137
------------
Cable/Satellite TV (1.9%)
CSC Holdings, Inc., 7.25%, 7/15/08 500 500
GCI, Inc., 7.25%, 2/15/14 582 495
------------
995
------------
Capital Goods (2.8%)
Baldor Electric Co., 8.63%, 2/15/17 101 98
Belden, Inc., 7.00%, 3/15/17 110 105
Case Corp., 7.25%, 1/15/16 365 365
General Cable Corp., 7.13%, 4/1/17 18 17
Mueller Water Products, Inc.,
7.38%, 6/1/17 1,060 901
------------
1,486
------------
Continued
Principal
Amount Value
------------ ------------
Corporate Bonds, continued
Chemicals (2.4%)
Mosaic Co. (The), 7.63%, 12/1/14 (b) $ 161 $ 174
Mosaic Co. (The), 7.88%, 12/1/16 (b) 332 359
PolyOne Corp., 8.88%, 5/1/12 750 750
------------
1,283
------------
Consumer Products (0.8%)
Valassis Communications, Inc.,
8.25%, 3/1/15 521 432
------------
Consumer Products-Miscellaneous (4.8%)
Jarden Corp., 7.50%, 5/1/17 1,098 939
Sealy Mattress Co., 8.25%, 6/15/14,
(Callable 6/15/09 @ 104.125) 630 545
Visant Holding Corp., 8.75%, 12/1/13 1,077 1,042
------------
2,526
------------
Containers (1.2%)
Solo Cup Co., 8.50%, 2/15/14 750 613
------------
Energy (9.3%)
Aventine Renewable Energy Holdings,
Inc., 10.00%, 4/1/17 239 200
Basic Energy Services, Inc., 7.13%,
4/15/16 750 705
Berry Petroleum Co., 8.25%, 11/1/16 1,104 1,120
Bristow Group, Inc., 6.13%, 6/15/13 600 578
Chesapeake Energy Corp., 6.50%,
8/15/17 149 144
Dresser-Rand Group, Inc., 7.38%,
11/1/14 850 833
Forest Oil Corp., 7.25%, 6/15/19 (b) 365 365
Helix Energy Solutions Group, Inc.,
9.50%, 1/15/16 (b) 205 208
United Refining Co., Series 2,
10.50%, 8/15/12 750 757
------------
4,910
------------
Financial Services (b) (0.8%)
Nuveen Investments, Inc., 10.50%,
11/15/15 412 400
------------
Food/Beverage/Tobacco (2.2%)
Del Monte Corp., 8.63%, 12/15/12 550 556
Pilgrim's Pride Corp., 7.63%, 5/1/15 661 626
------------
1,182
------------
Healthcare (6.1%)
Advanced Medical Optics, Inc., 7.50%,
5/1/17, (Callable 5/1/12 @ 103.75) 742 627
Community Health Systems, Inc.,
8.88%, 7/15/15 258 260
HCA, Inc., 5.75%, 3/15/14 769 650
HCA, Inc., 6.50%, 2/15/16 31 26
HCA, Inc., 9.25%, 11/15/16 357 375
IASIS Healthcare LLC/IASIS Capital
Corp., 8.75%, 6/15/14 371 371
Continued
73
High Yield Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Corporate Bonds, continued
Healthcare, continued
Invacare Corp., 9.75%, 2/15/15 $ 637 $ 643
Universal Hospital Services, Inc.,
8.29%, 6/1/15 (a) 275 261
------------
3,213
------------
Homebuilders/Real Estate (4.0%)
Beazer Homes USA, Inc., 6.88%, 7/15/15 750 536
K Hovnanian Enterprises, Inc., 8.63%,
1/15/17 250 184
KB Home, 7.25%, 6/15/18 750 712
M/I Homes, Inc., 6.88%, 4/1/12 850 710
------------
2,142
------------
Media (1.4%)
Lamar Media Corp., 7.25%, 1/1/13 261 258
Lamar Media Corp., Series B, 6.63%,
8/15/15 209 198
WMG Acquisition Corp., 7.38%, 4/15/14 362 282
------------
738
------------
Metals & Mining (0.4%)
Massey Energy Co., 6.88%, 12/15/13 250 238
------------
Paper (1.4%)
Buckeye Technologies, Inc.,
8.50%, 10/1/13 750 758
------------
Publishing/Printing (4.9%)
Cenveo Corp., 7.88%, 12/1/13 862 759
Dex Media, Inc., 8.00%, 11/15/13 184 166
Dex Media, Inc., 10.50%, 11/15/13 ** (d) 860 763
Idearc, Inc., 8.00%, 11/15/16 805 720
RH Donnelley Corp., 8.88%, 10/15/17 (b) 231 196
------------
2,604
------------
Services (3.6%)
ARAMARK Corp., 8.50%, 2/1/15 714 710
Ashtead Capital, Inc., 9.00%,
8/15/16 (b) 480 401
Stewart Enterprises, Inc., 6.25%,
2/15/13 500 467
United Rentals North America, Inc.,
6.50%, 2/15/12 231 213
United Rentals North America, Inc.,
7.75%, 11/15/13 144 118
------------
1,909
------------
Steel (1.5%)
PNA Group, Inc., 10.75%, 9/1/16 299 269
Ryerson, Inc., 12.00%, 11/1/15 (b) 58 55
Steel Dynamics, Inc., 7.38%,
11/1/12 (b) 314 313
Tube City IMS Corp., 9.75%, 2/1/15,
(Callable 2/1/11 @ 104.875) 179 161
------------
798
------------
Continued
Principal
Amount Value
------------ ------------
Corporate Bonds, continued
Technology (4.3%)
First Data Corp., 9.88%, 9/24/15(b) $ 538 $ 476
IKON Office Solutions, Inc., 9.93%,
1/1/12 (a) 274 271
IKON Office Solutions, Inc., 7.75%,
9/15/15 750 761
Sungard Data Systems, Inc., 9.13%,
8/15/13 750 761
------------
2,269
------------
Telecommunications (5.5%)
American Tower Corp., 7.00%,
10/15/17 (b) 412 408
Cincinnati Bell, Inc., 8.38%, 1/15/14 1,011 965
Citizens Communications Co., 6.25%,
1/15/13 314 298
Intelsat Corp., 9.00%, 8/15/14 806 800
Windstream Corp., 8.13%, 8/1/13 181 186
Windstream Corp., 8.63%, 8/1/16 258 267
------------
2,924
------------
Transportation (0.5%)
Overseas Shipholding Group, Inc.,
8.75%, 12/1/13 280 293
------------
Utilities (7.9%)
AES Corp. (The), 8.00%, 10/15/17 201 205
Atlas Pipeline Partners LP, 8.13%,
12/15/15 807 775
Copano Energy LLC, 8.13%, 3/1/16 190 192
Dynegy Holdings, Inc., 7.75%, 6/1/19 647 589
Edison Mission Energy, 7.50%, 6/15/13 165 169
Edison Mission Energy, 7.00%, 5/15/17 251 244
Mirant North America LLC, 7.38%,
12/31/13 750 750
Reliant Energy, Inc., 7.63%, 6/15/14 85 83
Sabine Pass Liquified Natural Gas LP,
7.25%, 11/30/13 734 694
TEPPCO Partners LP, 7.00%, 6/1/67 (a) 550 488
------------
4,189
------------
Total Corporate Bonds 43,912
------------
Foreign Bonds (13.3%)
Cable/Satellite TV (0.1%)
Virgin Media Finance PLC, 8.75%,
4/15/14 72 66
------------
Chemicals (b) (1.9%)
Basell AF SCA, 8.38%, 8/15/15 1,308 987
------------
Energy (2.2%)
CHC Helicopter Corp., 7.38%, 5/1/14 770 710
Connacher Oil and Gas, Ltd., 10.25%,
12/15/15 (b) 451 447
------------
1,157
------------
Continued
74
High Yield Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Foreign Bonds, continued
Media (1.9%)
Quebecor Media, Inc., 7.75%, 3/15/16 $ 902 $ 836
Quebecor Media, Inc., 7.75%,
3/15/16 (b) 209 194
------------
1,030
------------
Metals & Mining (1.9%)
Novelis, Inc., 7.25%, 2/15/15 1,100 1,015
------------
Technology (1.9%)
NXP BV/NXP Funding LLC, 7.88%,
10/15/14 390 357
Sensata Technologies BV, 8.00%,
5/1/14 714 643
------------
1,000
------------
Transportation (1.8%)
Stena AB, 7.50%, 11/1/13 750 734
Stena AB, 7.00%, 12/1/16 250 241
------------
975
------------
Utilities (1.6%)
Intergen NV, 9.00%, 6/30/17,
(Callable 6/30/12 @ 104.5) (b) 800 834
------------
Total Foreign Bonds 7,064
------------
Shares
------------
Investments in Affiliates (c) (1.8%)
Fifth Third Institutional Money
Market Fund 936,352 936
------------
Total Investments in Affiliates 936
------------
Total Investments (Cost $55,338) - 97.9% 51,912
Other assets in excess of liabilities - 2.1% 1,131
------------
NET ASSETS - 100.0% $ 53,043
============
Notes to Schedule of Investments
** Rate represents the effective yield at purchase.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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 investments
and notes to financial statements.
Total Return Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Asset-Backed Securities (9.6%)
Automobile ABS Other (0.8%)
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%,
2/15/12 $ 99 $ 97
Hyundai Auto Receivables Trust,
Series 2006-B, Class C, 5.25%,
5/15/13 (h) 2,665 2,625
Susquehanna Auto Lease Trust, Series
2007-1, Class B, 5.31%, 7/14/10 (b) 1,000 993
Truck Retail Installment Paper Corp.,
Series 2005-1A, Class A, 4.51%,
12/15/16 (a) (b) (g) 1,950 1,914
------------
5,629
------------
Automobiles Sequential (0.9%)
Hertz Vehicle Financing LLC, Series
2005-2A, Class A6, 5.08%, 11/25/11 (b) 3,000 2,836
Long Beach Auto Receivables Trust,
Series 2007-A, Class A3, 4.97%,
10/15/11 1,200 1,214
Prestige Auto Receivables Trust,
Series 2006-1A, Class A2, 5.25%,
6/17/13 (b) 1,875 1,865
------------
5,915
------------
Home Equity Other (2.3%)
Flagstar Home Equity Loan Trust,
Series 2007-1A, Class AF2, 5.77%,
1/25/35(b) 1,915 1,845
GMAC Mortgage Corp. Loan Trust,
Series 2004-HE5, Class A4, 4.34%,
9/25/34 (a) 1,750 1,694
JP Morgan Mortgage Acquisition Corp.,
Series 2006-WF1, Class A4, 6.41%,
7/25/36 3,191 3,043
JP Morgan Mortgage Acquisition Corp.,
Series 2006-WF1, Class A5, 6.41%,
7/25/36 (d) 4,286 3,898
New Century Home Equity Loan Trust,
Series 2005-A, Class A5W, 5.29%,
8/25/35 (d) 4,000 3,357
Renaissance Home Equity Loan Trust,
Series 2005-2, Class AF4, 4.93%,
8/25/35 2,620 2,429
------------
16,266
------------
Home Equity Sequential (0.4%)
Irwin Home Equity Corp., Series
2006-3, Class 2A2, 5.83%, 9/25/37 (b) 1,225 1,158
Residential Funding Mortgage
Securities II, Inc., Series 2006-HI3,
Class A4, 6.31%, 2/25/36 1,500 1,376
------------
2,534
------------
Manufactured Housing
ABS Other (0.2%)
Mid-State Trust, Series 2005-1, Class
M2, 7.08%, 1/15/40 1,271 1,206
------------
Continued
75
Total Return Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Asset-Backed Securities, continued
Manufactured Housing Sequential (0.4%)
Vanderbilt Acquisition Loan Trust,
Series 2002-1, Class A4, 6.57%,
5/7/27 (a) $ 2,840 $ 3,050
------------
Other ABS (4.5%)
Aerco, Ltd., Series 2A, Class A3,
4.70%, 7/15/25 (a) (b) (d) (h) 1,967 1,652
Credit-Based Asset Servicing and
Securitization LLC, Series 2005-CB7,
Class AF4, 5.43%, 11/25/35 2,475 2,471
Credit-Based Asset Servicing and
Securitization LLC, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36 (d) 6,375 5,979
Credit-Based Asset Servicing and
Securitization LLC, Series 2006-CB2,
Class AF2, 5.50%, 12/25/36 2,400 2,404
First Franklin Mortgage Loan Asset
Backed Certificates, Series 2005-FFA,
Class M3, 5.52%, 3/25/25 600 123
First Franklin Mortgage Loan Asset
Backed Certificates, Series
2004-FF11, Class 1A2, 3.73%,
1/25/35 (a) 52 48
Marlin Leasing Receivables LLC,
Series 2005-1A, Class A4, 4.75%,
8/15/12(b) 3,000 3,019
Popular ABS Mortgage Pass-Through
Trust, Series 2005-4, Class AF3,
4.98%, 9/25/35(a) (d) 1,580 1,492
Renaissance Home Equity Loan Trust,
Series 2006-1, Class AF4, 6.01%,
5/25/36(d) 1,645 1,471
Residential Asset Mortgage Products,
Inc., Series 2002-RZ3, Class M1,
5.28%, 8/25/32(d) 594 524
Residential Asset Mortgage Products,
Inc., Series 2003-RZ5, Class A7,
4.97%, 9/25/33 3,097 3,089
SACO I, Inc., Series 2006-1, Class A,
3.55%, 9/25/35 (a) (d) (g) 3,453 2,780
SACO I, Inc., Series 2006-12, Class
1M1, 3.69%, 9/25/36 (a) (d) (g) 6,500 3,283
Small Business Administration, Series
2005-P10B, Class 1, 4.94%, 8/10/15(h) 3,117 3,141
------------
31,476
------------
Real Estate Investment Trust (0.1%)
Attentus CDO, Ltd., Series 2006-2A,
Class A3B, 5.80%, 10/9/41 (a) (d) (h) (k) 5,000 750
------------
Total Asset-Backed Securities 66,826
------------
Corporate Bonds (10.1%)
Cable TV (0.1%)
COX Communications, Inc., 5.50%,
10/1/15 800 789
------------
Continued
Principal
Amount Value
------------ ------------
Corporate Bonds, continued
Commercial Banks-Central U.S. (0.9%)
Associated Bank NA, Series BKNT,
5.24%, 6/2/08 (a) (h) $ 5,000 $ 5,007
------------
National City Bank, Series BKNT,
5.25%, 12/15/16 (b) 1,340 1,197
------------
6,204
------------
Commercial Banks-Eastern U.S. (0.4%)
Manufacturers & Traders Trust Co.,
3.85%, 4/1/13 (a) 1,075 1,076
Mercantile Bankshares Corp., Series
B, 4.63%, 4/15/13 500 509
Republic New York Corp., 7.00%,
3/22/11 1,000 1,066
------------
2,651
------------
Commercial Banks Non-U.S. (0.2%)
Westpac Capital Trust IV, 5.26%,
12/29/49(a) (b) (i) 1,445 1,292
------------
Commercial Banks-Southern U.S. (1.1%)
Hibernia Corp., 5.35%, 5/1/14 2,845 2,523
Regions Financial Corp., 7.00%, 3/1/11 1,275 1,375
Wachovia Bank NA, 5.85%, 2/1/37(h) 4,500 4,066
------------
7,964
------------
Diversified Financial Services (0.2%)
American Express Travel Related
Services Co., Inc., 5.25%, 11/21/11 (b) 1,000 1,027
------------
Electric-Integrated (0.7%)
Florida Power Corp., Series A, 5.80%,
9/15/17 1,000 1,060
Public Service Electric & Gas Co.,
5.00%, 8/15/14 1,200 1,206
Virginia Electric and Power Co.,
Series B, 5.95%, 9/15/17 1,000 1,056
Virginia Electric and Power Co.,
Series 2007 D, 6.35%, 11/30/37 1,450 1,505
------------
4,827
------------
Finance-Commercial (0.1%)
Caterpillar Financial Services Corp.,
5.13%, 10/12/11 950 979
------------
Finance-Consumer Loans (1.1%)
HSBC Finance Corp., 6.38%, 10/15/11 2,000 2,095
John Deere Capital Corp., 7.00%,
3/15/12 3,950 4,368
John Deere Capital Corp., 5.50%,
4/13/17 1,225 1,261
------------
7,724
------------
Finance-Investment Banker/Broker (0.6%)
Bear Stearns Cos., Inc. (The), 6.40%,
10/2/17 350 332
Goldman Sachs Group, Inc. (The),
6.13%, 2/15/33 1,100 1,084
Continued
76
Total Return Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- ------------
Corporate Bonds, continued
Finance-Investment Banker/Broker, continued
Merrill Lynch & Co., Inc., 5.70%,
5/2/17 $ 2,000 $ 1,929
Morgan Stanley, Series F, 5.00%,
9/7/10 (a) 900 899
------------
4,244
------------
Finance-Leasing Company (0.4%)
International Lease Finance Corp.,
5.88%, 5/1/13 2,500 2,610
------------
Investment Managment/Advisor
Services (0.2%)
Ameriprise Financial, Inc., 5.65%,
11/15/15 1,480 1,481
------------
Money Center Banks (0.1%)
UBS Preferred Funding Trust I, 8.62%,
10/29/49 (a) (i) 925 1,011
------------
Multi-Line Insurance (0.2%)
MetLife, Inc., 5.00%, 6/15/15 1,100 1,102
------------
Multimedia (0.3%)
Time Warner, Inc., 7.70%, 5/1/32 492 535
Walt Disney Co. (The), 4.70%, 12/1/12 1,800 1,840
------------
2,375
------------
Oil Company-Exploration &
Production (0.4%)
Apache Corp., 5.63%, 1/15/17 2,885 2,995
------------
Oil Refining & Marketing (0.2%)
Premcor Refining Group, Inc. (The),
7.50%, 6/15/15, (Callable
6/15/08 @ 103.75) 1,500 1,580
------------
Property/Casualty Ins (0.0%)
Travelers Property Casualty Corp.,
7.75%, 4/15/26 85 96
------------
REITs-Regional Malls (0.3%)
Simon Property Group LP, 5.63%,
8/15/14 1,790 1,739
------------
Retail-Discount (0.2%)
Target Corp., 5.38%, 5/1/17 1,150 1,142
------------
Special Purpose Entity (0.5%)
JPM CHASE CAPITAL XXI, Series U,
5.84%, 2/2/37(a) 1,000 743
MassMutual Global Funding II, 3.80%,
4/15/09 (b) 1,390 1,397
Principal Life Global Funding I,
5.13%, 10/15/13(b) 1,090 1,135
------------
3,275
------------
Continued
Principal
Amount Value
---------- ------------
Corporate Bonds, continued
Super-Regional Banks-U.S. (1.5%)
BAC Capital Trust XIII, 5.39%,
3/15/43 (a) (i) $ 2,000 $ 1,577
Bank of America Corp., 5.63%, 10/14/16 7,250 7,376
Bank of America Corp., 8.00%,
12/29/49(a) (i) 1,450 1,506
------------
10,459
------------
Telephone-Integrated (0.3%)
AT&T, Inc., 6.30%, 1/15/38 1,450 1,440
Sprint Capital Corp., 8.75%, 3/15/32 600 589
------------
2,029
------------
Transport-Rail (0.1%)
Burlington Northern Santa Fe Corp.,
5.65%, 5/1/17 1,000 1,011
------------
Total Corporate Bonds 70,606
------------
Foreign Bonds (1.2%)
Oil Company-Exploration
& Production (0.5%)
Canadian Natural Resources, Ltd.,
6.25%, 3/15/38 1,000 950
Gazprom International SA, 7.20%,
2/1/20 (b) 2,733 2,812
------------
3,762
------------
Sovereign (0.6%)
Australia Government Bond, Series
909, 7.50%, 9/15/09 AUD 4,500 4,084
------------
Special Purpose Entity (0.0%)
Preferred Term Securities,
Ltd./Preferred Term Securities, Inc.,
6.66%, 7/3/32 (a) (b) 207 206
------------
Telephone-Integrated (0.1%)
France Telecom SA, 8.50%, 3/1/31 650 828
------------
Total Foreign Bonds 8,880
------------
Mortgage-Backed Securities (40.7%)
Agency Collateral Other (1.4%)
Fannie Mae, 5.50%, 12/25/20 2,553 2,605
Fannie Mae, 5.50%, 4/25/37 2,952 2,911
Restructured Assets Certificates,
Series 2006-9, Class P, 12.07%,
12/31/49 (a) (d) (e) (k) 5,250 4,410
------------
9,926
------------
CMBS Other (10.5%)
Banc of America Commercial Mortgage,
Inc., Series 2005-6, Class AJ, 5.35%,
9/10/47 (a) 2,850 2,560
Continued
77
Total Return Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- ------------
Mortgage-Backed Securities, continued
CMBS Other, continued
Bear Stearns Commercial Mortgage
Securities, Series 2000-WF2, Class
A1, 7.11%, 10/15/32 (a) $ 700 $ 703
Bear Stearns Commercial Mortgage
Securities, Series 2004-T14, Class
A4, 5.20%, 1/12/41 (a) 2,000 2,001
Bear Stearns Commercial Mortgage
Securities, Series 2004-T16, Class
A6, 4.75%, 2/13/46 (a) (h) 7,500 7,286
Chase Commercial Mortgage Securities
Corp., Series 1998-1, Class A2,
6.56%, 5/18/30 1,003 1,003
Citigroup Commercial Mortgage Trust,
Series 2005-EMG, Class A3, 4.38%,
9/20/51 (b) (h) 5,000 4,896
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD5 A2,
5.66%, 11/15/44 (d) 7,000 7,327
Commercial Mortgage Asset Trust,
Series 1999-C1, Class B, 7.23%,
1/17/32 (a) 1,620 1,774
Crown Castle Towers LLC, Series
2005-1A, Class AFX, 4.64%, 6/15/35 (b) 4,000 3,995
CS First Boston Mortgage Securities
Corp., Series 2001-CK3, Class A4,
6.53%, 6/15/34 2,922 3,044
GE Capital Commercial Mortgage Corp.,
Series 2000-1, Class A2, 6.50%,
1/15/33 2,485 2,575
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4,
4.95%, 1/11/35 1,000 991
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 5,125 5,104
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%,
8/10/38 (h) 4,900 4,894
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2003-CB6,
Class A2, 5.26%, 7/12/37 (a) 4,460 4,472
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2003-LN1,
Class A2, 4.92%, 10/15/37 (a) (h) 6,680 6,603
LB-UBS Commercial Mortgage Trust,
Series 2005-C3, Class A2, 4.55%,
7/15/30 330 327
LB-UBS Commercial Mortgage Trust,
Series 2003-C8, Class A4, 5.12%,
11/15/32 (a) 2,924 2,920
Morgan Stanley Capital I, Series
2004-IQ8, Class A5, 5.11%, 6/15/40 (a) 3,200 3,178
Morgan Stanley Dean Witter Capital I,
Series 2003-TOP9, Class A2, 4.74%,
11/13/36 2,590 2,541
Nomura Asset Securities Corp., Series
1998-D6, Class A2, 7.19%, 3/15/30 (a) 1,000 1,083
Continued
Principal
Amount Value
---------- ------------
Mortgage-Backed Securities, continued
CMBS Other, continued
Nomura Asset Securities Corp., Series
1998-D6, Class A4, 7.77%, 3/15/30 (a) $ 1,600 $ 1,788
Salomon Brothers Mortgage Securities
VII, Inc., Series 2002-KEY2, Class
A3, 4.87%, 3/18/36 2,270 2,252
------------
73,317
------------
CMBS Subordinated (4.0%)
Crown Castle Towers LLC, Series
2006-1A, Class E, 6.07%, 11/15/36 (b) (d) 6,100 5,979
CS First Boston Mortgage Securities
Corp., Series 2002-CKN2, Class C1,
6.38%, 4/15/37 (a) 1,180 1,247
Global Signal Trust, Series 2006-1,
Class C, 5.71%, 2/15/36 (b) 2,550 2,566
Global Signal Trust, Series 2006-1,
Class D, 6.05%, 2/15/36 (b) (d) 3,000 2,997
GS Mortgage Securities Corp. II,
Series 2004-C1, Class B, 4.46%,
10/10/28 (a) 2,740 2,701
GS Mortgage Securities Corp. II,
Series 2004-C1, Class C, 4.52%,
10/10/28 (a) 4,093 4,039
Morgan Stanley Capital I, Series
2005-IQ10, Class AJ, 5.44%,
9/15/42 (a) 2,759 2,482
Salomon Brothers Mortgage Securities
VII, Inc., Series 2002-KEY2, Class C,
5.05%, 3/18/36 (a) 1,417 1,410
SBA CMBS Trust, Series 2006-1A, Class
D, 5.85%, 11/15/36 (b) 3,100 3,048
SBA CMBS Trust, Series 2006-1A, Class
E, 6.17%, 11/15/36 (b) 1,350 1,320
------------
27,789
------------
Other ABS (a) (d) (k) (0.0%)
Squared CDO, Ltd., Series 2007-1A,
Class B, 7.04%, 5/11/57 4,000 200
------------
WL Collateral CMO Mezzanine (a) (0.0%)
Homebanc Mortgage Trust, Series
2004-1, Class 2M2, 5.10%, 8/25/29 419 260
------------
WL Collateral CMO Other (14.9%)
Banc of America Funding Corp., Series
2006-G, Class 3A2, 5.75%,
7/20/36 (a) (h) (d) 9,895 9,685
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-10, Class 12A3,
4.65%, 1/25/35 (a) 1,030 1,042
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-12, Class 13A1,
5.44%, 2/25/36 (a) 3,381 3,383
Chase Mortgage Finance Corp., Series
2006-A1, Class 4A1, 6.05%, 9/25/36 (a) 8,930 9,123
Chase Mortgage Finance Corp., Series
2006-S2, Class 2A6, 6.00%, 10/25/36 5,105 5,172
Continued
78
Total Return Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- ------------
Mortgage-Backed Securities, continued
WL Collateral CMO Other, continued
Chaseflex Trust, Series 2006-1, Class
A2A, 5.94%, 6/25/36 (a) $ 1,600 $ 1,603
Chaseflex Trust, Series 2006-1, Class
A4, 6.30%, 6/25/36 (a) 7,344 7,104
Chaseflex Trust, Series 2006-2, Class
A4, 6.34%, 9/25/36(a) 5,100 4,838
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust, Series 2005-4,
Class A2, 5.05%, 9/25/35 (a) 1,610 1,612
Deutsche Mortgage Securities, Inc.,
Series 2005-WF1, Class 1A1, 5.08%,
6/26/35(a) (k) 1,298 1,298
GMAC Mortgage Corp. Loan Trust,
Series 2003-GH2, Class A4, 5.00%,
10/25/33 2,561 2,488
Homebanc Mortgage Trust, Series
2004-2, Class A2, 3.83%, 12/25/34 1,632 1,552
(a) (g)
Homebanc Mortgage Trust, Series
2006-1, Class 2A1, 5.98%, 4/25/37 (a) 3,557 3,608
Homebanc Mortgage Trust, Series
2006-1, Class 1A1, 6.02%, 4/25/37 581 575
(a) (g)
Indymac Index Mortgage Loan Trust,
Series 2005-AR9, Class 1A1, 5.52%,
7/25/35 (a) 2,527 2,605
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.84%, 2/25/35 892 899
(a)
JP Morgan Mortgage Trust, Series 2005-A1,
Class 3A4, 5.03%, 2/25/35(a) (d) 6,218 6,001
JP Morgan Mortgage Trust, Series
2005-A2, Class 5A1, 4.35%, 4/25/35 3,559 3,525
(a)
JP Morgan Mortgage Trust, Series
2005-A2, Class 7CB1, 4.90%, 4/25/35(a) 3,215 3,208
JP Morgan Mortgage Trust, Series
2005-A2, Class 3A2, 4.90%, 4/25/35 3,000 3,009
(a)
JP Morgan Mortgage Trust, Series 2005-A3,
Class 7CA1, 5.11%, 6/25/35(a) 2,149 2,157
JP Morgan Mortgage Trust, Series
2005-ALT1, Class 4A1, 5.65%,
10/25/35 (a) 3,263 3,269
JP Morgan Mortgage Trust, Series
2006-A2, Class 3A2, 5.68%, 4/25/36 8,195 8,240
(a)
Morgan Stanley Mortgage Loan Trust,
Series 2004-4, Class 3A, 5.00%,
8/25/19 1,780 1,796
Nomura Asset Acceptance Corp., Series
2005-AR1, Class 1A2, 5.33%, 2/25/35 (a) 1,845 1,858
Nomura Asset Acceptance Corp., Series
2006-AF1, Class 3A2, 6.62%, 6/25/36 (a) 2,514 2,327
Residential Accredit Loans, Inc.,
Series 2004-QA1, Class A1, 3.65%,
3/25/34(a) (g) 1,414 1,400
Residential Accredit Loans, Inc.,
Series 2005-QA12, Class CB1, 5.74%,
12/25/35 (a) 2,527 2,524
Structured Asset Securities Corp.,
Series 2004-21XS, Class 2A6B, 5.15%,
12/25/34 1,237 1,286
Continued
Principal
Amount Value
---------- ------------
Mortgage-Backed Securities, continued
WL Collateral CMO Other, continued
WaMu Mortgage Pass Through
Certificates, Series 2003-AR9, Class
1A6, 4.05%, 9/25/33(a) $ 5,862 $ 5,890
WaMu Mortgage Pass Through
Certificates, Series 2004-AR3, Class
A2, 4.24%, 6/25/34(a) 1,439 1,425
------------
104,502
------------
WL Collateral CMO Sequential (4.3%)
Chase Mortgage Finance Corp., Series
2006-A1, Class 2A3, 6.00%, 9/25/36(a) 2,000 2,033
Countrywide Alternative Loan Trust,
Series 2005-J3, Class 3A1, 6.50%,
9/25/34 477 485
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust, Series
2006-AB3, Class A3, 6.51%, 7/25/36(a) 2,575 2,211
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust, Series
2006-AB4, Class A3A1, 5.90%,
10/25/36 (a) 5,425 4,746
JP Morgan Alternative Loan Trust,
Series 2005-S1, Class 1A2, 5.50%,
12/25/35 1,900 1,887
JP Morgan Alternative Loan Trust,
Series 2006-S3, Class A3A, 6.00%,
8/25/36(d) 4,529 4,507
JP Morgan Mortgage Trust, Series
2006-A4, Class 2A2, 5.83%,
6/25/36 (a) 838 848
JP Morgan Mortgage Trust,
Series 2006-A7,
Class 3A2, 5.95%, 1/25/37 (a) (d) 5,075 5,040
JP Morgan Mortgage Trust, Series 2007-A2,
Class 3A3, 5.86%, 4/25/37 (a) (d) 4,900 4,788
Wells Fargo Mortgage Backed
Securities Trust, Series 2003-N,
Class 2A3, 4.75%, 12/25/33 (a) 4,095 3,870
------------
30,415
------------
WL Collateral CMO Subordinate (0.3%)
Suntrust Alternative Loan Trust,
Series 2005-1F, Class B3, 6.07%,
12/25/35 (a) (d) 3,166 1,811
------------
WL Collateral PAC (0.4%)
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1, 4.25%,
3/25/34 2,597 2,572
------------
WL Collateral Support (4.9%)
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-12, Class 11A2,
5.43%, 2/25/36(a) 2,720 2,740
Bear Stearns Alt-A Trust, Series 2005-9,
Class 21A2, 5.77%, 11/25/35 (a) (d) 1,445 1,401
Continued
79
Total Return Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- ------------
Mortgage-Backed Securities, continued
WL Collateral Support, continued
Chaseflex Trust, Series 2006-1, Class
A6, 6.29%, 6/25/36 (a) $ 5,265 $ 5,358
JP Morgan Alternative Loan Trust,
Series 2006-S1, Class 1A18, 6.00%,
3/25/36 3,693 3,535
JP Morgan Alternative Loan Trust,
Series 2006-A4, Class A7, 6.30%,
9/25/36 (a) (d) 5,000 4,200
JP Morgan Alternative Loan Trust,
Series 2006-A4, Class A9, 6.30%,
9/25/36(a) 3,729 3,325
JP Morgan Alternative Loan Trust,
Series 2006-A5, Class 2A6, 5.80%,
10/25/36(a) (d) 5,640 5,027
Nomura Asset Acceptance Corp., Series
2004-AR4, Class 1A2, 4.90%,
12/25/34 (a) 974 971
Nomura Asset Acceptance Corp., Series
2005-AR2, Class 2A2, 5.54%, 5/25/35 (a) 1,343 1,359
Nomura Asset Acceptance Corp., Series
2005-AR3, Class 3A2, 5.66%, 7/25/35 (a) 1,975 1,916
Nomura Asset Acceptance Corp., Series
2005-AR5, Class 2A2, 5.63%,
10/25/35 (a) 1,411 1,329
Residential Funding Mortgage
Securities I, Series 2007-S2, Class
A10, 6.00%, 2/25/37 430 420
Wells Fargo Mortgage Backed
Securities Trust, Series 2005-AR7,
Class 2A2, 5.13%, 5/25/35 (a) 2,670 2,647
------------
34,228
------------
Total Mortgage-Backed Securities 285,020
------------
U.S. Government Agencies (30.9%)
Fannie Mae (14.9%)
6.05%, 12/1/08 2,758 2,798
6.50%, 7/1/16 546 572
6.00%, 5/1/17 160 166
6.50%, 6/1/17 203 212
6.50%, 8/1/17 158 166
5.50%, 1/1/18 11 12
5.50%, 2/1/18 7 7
6.00%, 5/1/18 538 556
6.00%, 2/1/22 3,607 3,723
4.50%, 2/1/23, TBA 4,200 4,208
5.50%, 2/1/25 1,157 1,179
5.00%, 5/1/25 1,938 1,948
7.50%, 6/1/28 170 185
6.50%, 8/1/28 200 209
6.50%, 6/1/29 101 106
6.50%, 4/1/32 343 358
6.50%, 6/1/32 651 680
7.00%, 6/1/32 172 185
6.50%, 7/1/32 985 1,028
7.00%, 8/1/32 459 489
7.50%, 12/1/32 70 75
Continued
Principal
Amount Value
---------- ------------
U.S. Government Agencies, continued
Fannie Mae, continued
6.00%, 1/1/33 $ 333 $ 343
5.50%, 3/1/33 8,838 8,971
6.50%, 3/1/33 167 174
6.00%, 8/25/33 (a) 2,180 2,159
5.50%, 12/25/33 900 924
5.00%, 1/1/34 9,563 9,543
5.50%, 5/25/34 3,150 2,818
5.18%, 8/1/34 (a) 119 120
7.00%, 9/1/34 89 95
5.50%, 12/1/34 4,605 4,671
5.50%, 6/1/35 639 648
6.00%, 7/1/35 3,635 3,733
6.00%, 9/1/35 2,023 2,078
5.00%, 11/1/35 3,573 3,560
5.50%, 11/1/35 1,052 1,067
6.00%, 1/1/36 3,643 3,743
3.68%, 4/25/36 (a) (g) 5,206 5,159
6.50%, 8/1/36 899 926
7.00%, 9/1/36 1,366 1,438
5.50%, 11/1/36 1,632 1,655
6.00%, 12/1/36 15,437 15,843
5.50%, 1/1/37 4,089 4,145
6.00%, 1/1/37 5,129 5,264
5.50%, 8/1/37 3,210 3,253
5.50%, 12/1/37 2,018 2,045
3.63%, 8/25/44 (a) 931 918
------------
104,155
------------
Freddie Mac (9.9%)
5.00%, 8/15/12 2,275 2,433
4.00%, 1/15/17 7,500 7,465
6.00%, 12/15/21 4,472 4,586
5.00%, 2/15/25 3,245 3,197
7.00%, 6/1/26 611 644
6.50%, 1/1/29 1,302 1,364
7.00%, 1/1/32 113 122
6.50%, 7/1/32 213 222
2.96%, 7/15/32, IO (a) 10,751 643
6.50%, 9/1/32 126 131
5.00%, 8/1/33 388 387
6.00%, 9/1/33 496 510
5.00%, 5/1/34 191 190
6.50%, 5/15/34 (a) 2,915 2,793
4.50%, 6/1/34 853 825
4.50%, 9/1/34 1,044 1,010
5.50%, 3/15/35 5,505 5,539
5.00%, 7/1/35 502 501
5.00%, 8/1/35 1,090 1,086
5.00%, 11/1/35 3,957 3,941
5.00%, 4/1/36 456 454
5.00%, 7/1/36 2,037 2,028
4.64%, 7/15/36 (a) (g) 1,699 1,695
4.79%, 9/15/36 (a) 1,711 1,700
5.83%, 10/1/36(a) 2,564 2,632
6.10%, 1/1/37 (a) 5,720 5,848
6.15%, 2/1/37 (a) 5,359 5,463
Continued
80
Total Return Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
U.S. Government Agencies, continued
Freddie Mac, continued
5.32%, 3/1/37 (a) $ 937 $ 946
5.94%, 3/1/37 (a) 6,771 6,953
5.72%, 4/1/37 (a) 3,479 3,577
------------
68,885
------------
Government National Mortgage
Association (6.1%)
9.50%, 12/15/09 413 425
5.30%, 7/16/28 (a) 3,000 3,123
4.82%, 10/16/29 (a) 2,660 2,722
5.32%, 8/16/30 (a) 2,560 2,664
5.03%, 11/16/33 (a) 5,640 5,728
4.42%, 5/16/34 10,250 10,377
0.96%, 6/17/45, IO (a)(d) 13,155 654
0.51%, 3/16/46, IO (a)(d) 13,766 533
0.55%, 4/16/46, IO (a)(d) 61,196 2,257
0.79%, 5/16/46, IO (a)(d) 43,861 2,385
3.40%, 5/16/46 (a) 2,631 1,769
0.91%, 8/16/46, IO (a)(d) 34,482 1,940
1.00%, 2/16/48, IO (a)(d) 14,821 874
1.05%, 2/16/48, IO (a)(d) 57,395 3,103
1.06%, 6/16/49, IO (a)(d) 66,323 4,228
------------
42,782
------------
Total U.S. Government Agencies 215,822
------------
U.S. Treasury Obligations (4.4%)
U.S. Treasury Inflation Protected
Securities (f) (2.1%)
2.00%, 1/15/14 8,272 8,822
2.63%, 7/15/17 5,069 5,685
------------
14,507
------------
U.S. Treasury Notes (1.4%)
4.75%, 8/15/17 5,950 6,477
4.25%, 11/15/17 500 525
4.50%, 2/15/36 615 629
5.00%, 5/15/37 2,000 2,215
------------
9,846
------------
U.S. Treasury Strips ** (0.9%)
6.12%, 2/15/18 5,000 3,343
8.21%, 11/15/27 (h) 7,400 2,997
------------
6,340
------------
Total U.S. Treasury Obligations 30,693
------------
Shares
------------
Preferred Stocks (1.2%)
Fannie Mae, 8.25% 160,000 4,227
Freddie Mac, 8.38% 161,000 4,323
------------
Total Preferred Stocks 8,550
------------
Continued
Principal
Amount Value
------------ ------------
Demand Notes (0.1%)
Electric-Integrated (a)(j)(0.1%)
Alabama Power Capital Trust V,
5.50%, 4/1/08 $ 874 $ 892
------------
Total Demand Notes 892
------------
Shares
------------
Investments in Affiliates (c) (1.7%)
Fifth Third Institutional Money
Market Fund 11,648,222 11,648
------------
Total Investments in Affiliates 11,648
------------
Total Investments (Cost $712,769) - 99.9% 698,937
Other assets in excess of liabilities - 0.1% 514
NET ASSETS - 100.0% $ 699,451
============
Notes to Schedule of Investments
** Rate represents the effective yield at purchase.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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) The Fund's securities were fair valued at January 31, 2008 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) All or part of this security has been designated as collateral for TBA
securities.
(h) All or part of this security has been designated as collateral for when
issued or delayed delivery transactions.
(i) Perpetual Maturity. Callable any time after first call date. Maturity date
is next call date.
(j) Maturity date is next rate reset date.
(k) Illiquid Securities
The following abbreviations are used in the Schedule of Investments:
ABS - Asset-Backed Security
AUD - Australian Dollar
CDO - Collateralized Debt Obligation
CMBS - Commercial Mortgage-Backed Security
CMO - Collateralized Mortgage Obligation
IO - Interest Only
PAC - Planned Amortization Class
REIT - Real Estate Investment Trust
TBA - To Be Announced
WL - Whole Loan
See notes to schedules of investments
and notes to financial statements.
81
Short Term Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Asset-Backed Securities (18.9%)
Automobile ABS Other (0.4%)
Harley-Davidson Motorcycle Trust,
Series 2004-2, Class B, 2.96%,
2/15/12 $ 574 $ 567
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class B, 3.79%,
10/15/10 489 489
------------
1,056
------------
Automobiles Sequential (11.0%)
Banc of America Securities Auto
Trust, Series 2005-WF1, Class A4,
4.08%, 4/18/10 3,000 3,010
Bay View Auto Trust, Series 2005-LJ2,
Class A4, 4.55%, 2/25/14 2,000 2,022
Capital One Auto Finance Trust,
Series 2006-C, Class A3A, 5.07%,
7/15/11 1,899 1,875
Harley-Davidson Motorcycle Trust,
Series 2007-3, Class A2A, 5.34%,
9/15/10 2,000 2,018
Harley-Davidson Motorcycle Trust,
Series 2006-2, Class A2, 5.35%,
3/15/13 3,305 3,383
Hertz Vehicle Financing LLC, Series
2005-2A, Class A2, 4.93%, 2/25/10 (b) 3,375 3,321
Hyundai Auto Receivables Trust,
Series 2005-A, Class A4, 4.18%,
2/15/12 3,000 3,027
Long Beach Auto Receivables Trust,
Series 2005-B, Class A3, 4.41%,
5/15/10 583 584
Navistar Financial Corp. Owner Trust,
Series 2003-B, Class A4, 3.25%,
10/15/10 1,822 1,822
Nissan Auto Lease Trust, Series
2006-A, Class A4, 5.10%, 7/16/12 (f) 4,000 4,096
USAA Auto Owner Trust, Series 2006-2
A4, 5.37%, 2/15/12 1,500 1,542
Wachovia Auto Owner Trust, Series
2005-A, Class A4, 4.23%, 11/21/11 3,500 3,526
------------
30,226
------------
Credit Card Bullet (4.4%)
Bank One Issuance Trust, Series
2004-A1, Class A1, 3.45%, 10/17/11 810 812
Chase Issuance Trust, Series
2005-A10, Class A10, 4.65%, 12/17/12 3,000 3,078
GE Capital Credit Card Master Note
Trust, Series 2005-3, Class A, 4.13%,
6/15/13 2,000 2,026
MBNA Master Credit Card Trust, Series
1999-B, Class A, 5.90%, 8/15/11 3,000 3,088
Nordstrom Private Label Credit Card
Master Note Trust, Series 2007-1A,
Class A, 4.92%, 5/15/13 (b) 3,000 3,104
------------
12,108
------------
Continued
Principal
Amount Value
------------ ------------
Asset-Backed Securities, continued
Home Equity Other (1.6%)
GMAC Mortgage Corp. Loan Trust,
Series 2004-HE2, Class A3, 4.24%,
10/25/33 (a)(f) $ 2,983 $ 2,947
GMAC Mortgage Corp. Loan Trust,
Series 2005-HE2, Class A3, 4.62%,
11/25/35 (a) 1,510 1,461
------------
4,408
------------
Home Equity Sequential (1.1%)
GMAC Mortgage Corp. Loan Trust,
Series 2006-HE2, Class A2, 6.18%,
5/25/36 (f) 3,000 2,871
------------
Other ABS (0.4%)
CNH Equipment Trust, Series 2005-A,
Class A3, 4.02%, 4/15/09 32 32
SVO VOI Mortgage Corp., Series
2005-AA, Class A, 5.25%, 2/20/21 (b) 1,110 1,097
------------
1,129
------------
Total Asset-Backed Securities 51,798
------------
Corporate Bonds (13.4%)
Cable TV (0.5%)
Comcast Cable Communications LLC,
6.88%, 6/15/09 1,250 1,294
------------
Commercial Banks-Eastern U.S. (1.1%)
HSBC Bank USA NA, Series BKNT, 3.88%,
9/15/09 3,000 3,000
------------
Diversified Financial Services (2.2%)
General Electric Capital Corp.,
5.25%, 10/27/09 6,000 6,173
------------
Finance-Consumer Loans (1.1%)
HSBC Finance Corp., 4.75%, 5/15/09 3,000 3,026
------------
Finance-Investment Banker/Broker (3.1%)
Bear Stearns Cos., Inc. (The), 7.63%,
12/7/09 2,500 2,584
Goldman Sachs Group, Inc. (The),
6.65%, 5/15/09 3,000 3,116
Lehman Brothers Holdings, Inc.,
4.25%, 1/27/10 3,000 2,973
------------
8,673
------------
Finance-Leasing Company (1.1%)
International Lease Finance Corp.,
4.75%, 7/1/09 3,000 3,013
------------
Finance-Mortgage Loan/Banker (0.1%)
Countrywide Home Loans, Inc., 5.63%,
7/15/09 250 230
------------
Continued
82
Short Term Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Corporate Bonds, continued
Life/Health Insurance (0.6%)
Protective Life Secured Trusts,
3.70%, 11/24/08 $ 1,590 $ 1,588
------------
Pipelines (0.6%)
CenterPoint Energy Resources Corp.,
6.50%, 2/1/08 1,600 1,600
------------
Retail-Discount (0.8%)
Wal-Mart Stores, Inc., 4.13%, 2/15/11 2,250 2,279
------------
Super-Regional Banks-U.S. (2.2%)
Wachovia Corp., 4.38%, 6/1/10 3,000 3,008
Wells Fargo & Co., 4.20%, 1/15/10 3,000 3,029
------------
6,037
------------
Total Corporate Bonds 36,913
------------
Foreign Bonds (3.2%)
Finance-Other Services (0.1%)
Pemex Finance, Ltd., Series 1999,
Class NT, 9.69%, 8/15/09 (d) 284 287
------------
Gas-Distribution (1.2%)
Australian Gas Light Co., Ltd.,
6.40%, 4/15/08 (b) 3,210 3,231
------------
Oil Company-Integrated (1.1%)
BP Capital Markets PLC, 4.88%, 3/15/10 3,000 3,108
------------
Sovereign (0.6%)
Australia Government Bond,
Series 909, 7.50%, 9/15/09 AUD 1,850 1,679
------------
Telephone-Integrated (0.2%)
Telecom Italia Capital SA, Series A,
4.00%, 11/15/08 $ 650 647
------------
Total Foreign Bonds 8,952
------------
Mortgage-Backed Securities (31.0%)
CMBS Other (5.2%)
Banc of America Commercial Mortgage,
Inc., Series 2004-4, Class A3, 4.13%,
7/10/42 (f) 2,500 2,481
Bear Stearns Commercial Mortgage
Securities, Series 2000-WF2, Class
A1, 7.11%, 10/15/32 (a) 436 438
CS First Boston Mortgage Securities
Corp., Series 2004-C3, Class A3,
4.30%, 7/15/36 (f) 2,500 2,485
CS First Boston Mortgage Securities
Corp., Series 2001-CK6, Class A2,
6.10%, 8/15/36 711 715
GE Capital Commercial Mortgage Corp.,
Series 2005-C1, Class A2, 4.35%,
6/10/48 2,750 2,720
Continued
Principal
Amount Value
------------ ------------
Mortgage-Backed Securities, continued
CMBS Other, continued
Greenwich Capital Commercial Funding
Corp., Series 2005-GG3, Class A2,
4.31%, 8/10/42 (f) $ 3,000 $ 2,970
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%,
8/10/38 2,500 2,497
------------
14,306
------------
CMBS Subordinated (2.5%)
GMAC Commercial Mortgage Securities,
Inc., Series 1999-C2, Class B, 7.14%,
9/15/33 (a)(f) 3,250 3,345
IMPAC Commercial Holdings, Inc.,
Series 1998-C1, Class D, 7.58%,
8/20/30 3,458 3,449
------------
6,794
------------
WL Collateral CMO Other (16.9%)
Banc of America Mortgage Securities,
Inc., Series 2004-F, Class 2A6,
4.15%, 7/25/34 (a) 2,500 2,521
Banc of America Mortgage Securities,
Inc., Series 2004-F, Class 2A7,
4.15%, 7/25/34 (a) 2,922 2,944
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-1, Class 13A3,
4.77%, 4/25/34 (a) 2,743 2,769
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-4, Class 2A2,
4.57%, 8/25/35 (a) 3,000 3,048
Bear Stearns Asset Backed Securities
Trust, Series 2003-AC7, Class A2,
5.25%, 1/25/34 1,178 1,175
Countrywide Alternative Loan Trust,
Series 2005-14, Class 1A1, 3.30%,
5/25/35 (a) 1,417 1,431
Countrywide Home Loan Mortgage Pass
Through Trust, Series 2004-HYB5,
Class 4A1, 5.01%, 4/20/35 (a) 1,911 1,925
Harborview Mortgage Loan Trust,
Series 2004-5, Class 2A6, 3.94%,
6/19/34 (a)(f) 5,730 5,724
Homebanc Mortgage Trust, Series
2004-2, Class A2, 3.83%, 12/25/34 (a) 1,315 1,251
Homebanc Mortgage Trust, Series
2006-1, Class 1A1, 6.02%, 4/25/37 (a) 2,032 2,013
Indymac Index Mortgage Loan Trust,
Series 2006-AR29, Class A2, 3.46%,
11/25/36 (a) 963 956
JP Morgan Alternative Loan Trust,
Series 2006-S2, Class A2, 5.81%,
5/25/36 2,075 2,088
JP Morgan Mortgage Trust, Series
2005-A1, Class 3A3, 4.90%, 2/25/35 (a) 2,365 2,377
JP Morgan Mortgage Trust, Series
2005-A2, Class 5A1, 4.36%, 4/25/35 (a) 2,162 2,141
Continued
83
Short Term Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Mortgage-Backed Securities, continued
WL Collateral CMO Other, continued
JP Morgan Mortgage Trust, Series
2005-A3, Class 7CA1, 5.11%,
6/25/35 (a)(f) $ 3,444 $ 3,456
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A,
6.06%, 12/25/32 (a) 144 145
Provident Funding Mortgage Loan
Trust, Series 2005-2, Class 2A1A,
4.70%, 10/25/35 (a) 2,351 2,344
Residential Funding Mortgage
Securities I, Series 2007-SA1, Class
1A1, 5.73%, 2/25/37 (a) 3,739 3,833
WaMu Mortgage Pass Through
Certificates, Series 2003-AR10, Class
A4, 4.06%, 10/25/33 (a) 569 569
Wells Fargo Mortgage Backed
Securities Trust, Series 2005-AR10,
Class 2A14, 4.11%, 6/25/35 (a) 3,500 3,527
------------
46,237
------------
WL Collateral CMO Sequential (5.9%)
Chase Mortgage Finance Corp., Series
2005-A1, Class 2A2, 5.24%, 12/25/35 (a) 2,496 2,510
JP Morgan Alternative Loan Trust,
Series 2006-S3, Class A2A, 5.87%,
8/25/36 3,000 3,020
JP Morgan Mortgage Trust, Series
2006-A3, Class 2A1, 5.62%, 5/25/36 (a) 2,906 2,955
JP Morgan Mortgage Trust, Series
2006-A4, Class 2A2, 5.83%, 6/25/36 (a) 2,638 2,673
JP Morgan Mortgage Trust, Series
2007-A2, Class 4A1M, 5.80%,
4/25/37 (a) 2,754 2,770
RAAC Series, Series 2005-SP1, Class
2A2, 5.25%, 9/25/34 2,249 2,222
------------
16,150
------------
WL Collateral PAC (0.5%)
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1, 4.25%,
3/25/34 1,480 1,466
------------
Total Mortgage-Backed Securities 84,953
------------
Municipal Bonds (b) (0.2%)
Ohio (0.2%)
State Economic Enterprise, Series 3,
4.05%, 3/1/11 570 576
------------
Total Municipal Bonds 576
------------
Continued
Principal
Amount Value
------------ ------------
U.S. Government Agencies (24.6%)
Fannie Mae (3.7%)
5.00%, 2/25/25 $ 4,000 $ 4,049
4.69%, 4/1/33 (a) 1,952 1,988
5.14%, 9/1/34 (a) 2,333 2,450
4.94%, 4/1/35 (a) 1,517 1,545
------------
10,032
------------
Fannie Mae Prepayment Link Note,
Series 2005-4, Class 1 (1.0%)
4.65%, 12/25/12 2,700 2,752
------------
Federal Home Loan Bank (3.8%)
5.00%, 9/18/09 4,500 4,668
4.75%, 10/25/10, IO 2,728 2,737
3.63%, 12/17/10 3,000 3,053
------------
10,458
------------
Freddie Mac (8.3%)
4.88%, 2/9/10 7,000 7,294
5.00%, 9/15/25 3,438 3,485
4.50%, 7/15/28 3,376 3,397
3.99%, 3/1/34 (a) 1,972 1,950
4.68%, 7/1/35 (a) 3,486 3,503
5.72%, 4/1/37 (a) 3,135 3,223
------------
22,852
------------
Government National Mortgage
Association (7.8%)
2.87%, 2/16/20 (f) 3,985 3,988
3.27%, 1/16/23 2,150 2,141
6.01%, 2/16/24 (a) 1,244 1,276
3.72%, 12/16/26 3,156 3,159
4.00%, 5/16/27 2,320 2,329
4.29%, 1/16/30 2,869 2,894
4.09%, 8/16/30 2,136 2,151
3.95%, 11/16/30 3,420 3,434
------------
21,372
------------
Total U.S. Government Agencies 67,466
------------
U.S. Treasury Obligations (6.3%)
U.S. Treasury Inflation Protected
Securities (e) (2.1%)
0.88%, 4/15/10 5,546 5,611
------------
U.S. Treasury Notes (4.2%)
4.50%, 5/15/10 4,000 4,209
4.50%, 11/15/10 7,000 7,424
------------
11,633
------------
Total U.S. Treasury Obligations 17,244
------------
Continued
84
Short Term Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Shares Value
----------- ------------
Investments in Affiliates (c) (1.7%)
Fifth Third Institutional Money
Market Fund 4,625,438 $ 4,625
------------
Total Investments in Affiliates 4,625
------------
Total Investments (Cost $269,057) - 99.3% 272,527
Other assets in excess of liabilities - 0.7% 1,841
------------
NET ASSETS - 100.0% $ 274,368
============
Notes to Schedule of Investments
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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) The Fund's securities were fair valued at January 31, 2008 using
procedures approved by the Board of Trustees.
(e) 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.
(f) All or part of this security has been deposited as collateral for when
issued or delayed delivery transactions.
The following abbreviations are used in the Schedule of Investments:
ABS - Asset-Backed Security
AUD - Australian Dollar
CMBS - Commercial Mortgage-Backed Security
CMO - Collateralized Mortgage Obligation
IO - Interest Only
PAC - Planned Amortization Class
WL - Whole Loan
See notes to schedules of investments
and notes to financial statements.
Municipal Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds (96.6%)
Arizona (4.0%)
Mesa Street and Highway, FSA, 5.25%,
7/1/23 $ 600 $ 680
Tucson Water, MBIA, 4.25%, 7/1/21,
(Callable 7/1/16 @ 100) 1,000 1,022
------------
1,702
------------
Arkansas (0.6%)
Southern Arkansas University, AMBAC,
4.10%, 12/1/19, (Callable
12/1/15 @ 100) 250 248
------------
California (13.9%)
California Polytechnical Pomona
Foundation, Inc., MBIA, 5.50%,
2/1/20, (Prerefunded 2/1/11 @ 101) 265 292
La Canada Unified School District,
Series A, GO, MBIA, 5.50%, 8/1/24,
(Callable 8/1/14 @ 100) 1,000 1,093
Long Beach Community College
District, Series B, GO, FGIC, 5.00%,
5/1/30, (Callable 5/1/15 @ 100) 1,000 1,017
Los Angeles Unified School District,
Series A-2, GO, FGIC, 4.50%, 7/1/22,
(Callable 7/1/17 @ 100) 1,000 1,016
Placentia-Yorba Linda Unified School
District, Series B, GO, FGIC, 5.38%,
8/1/22, (Callable 8/1/14 @ 100) 1,000 1,076
Sacramento County Sanitation
District, Series A, 6.00%, 12/1/15,
(Callable 12/1/10 @ 101) 250 275
State Public Works Board, FGIC,
5.25%, 11/1/19 1,020 1,149
------------
5,918
------------
Colorado (2.6%)
Douglas County School District No
Re-1, GO, FGIC, 5.75%, 12/15/21,
(Callable 12/15/14 @ 100) 1,000 1,113
------------
Florida (2.6%)
Volusia County School Board, Series
A, CP, FSA, 5.00%, 8/1/19, (Callable
8/1/15 @ 100) 1,010 1,088
------------
Illinois (8.2%)
Chicago Board of Education, Series
D3, GO, XLCA, 5.50%, 3/1/34 (a) 250 250
Chicago Metropolitan Water
Reclamation District-Greater Chicago
Capital Improvements, GO, ETM, 7.25%,
12/1/12 500 603
Continued
85
Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Illinois, continued
City of Chicago Single Family
Mortgage, Series A, AMT, GNMA-FNMA,
4.70%, 10/1/17, (Callable
4/1/09 @ 102) $ 130 $ 131
Development Finance Authority,
Elmhurst Community School, FSA,
6.38%, 1/1/17, (Prerefunded
1/1/11 @ 100) 1,700 1,889
Finance Authority, Metropolis
Project, 5.00%, 12/1/14, (Callable
12/1/13 @ 100) 300 319
State of Illinois, GO, FGIC, 5.88%,
10/1/17, (Callable 10/1/09 @ 100) 300 316
------------
3,508
------------
Iowa (5.3%)
Finance Authority, Drake University
Project, MBIA, 6.50%, 12/1/11 2,055 2,259
------------
Kansas (4.4%)
Geary County Unified School District
No 475, GO, MBIA, 5.25%, 9/1/17,
(Callable 9/1/15 @ 100) 1,675 1,890
------------
Louisiana (2.4%)
State Citizens Property Insurance
Corp., Series B, AMBAC, 5.00%,
6/1/18, (Callable 6/1/16 @ 100) 1,000 1,041
------------
Michigan (9.3%)
Detroit Water Supply System, Series
A, FSA, 5.00%, 7/1/16 1,000 1,117
Higher Education Student Loan
Authority, Series XII-W, AMT, AMBAC,
4.75%, 3/1/09 1,000 1,026
State Hospital Finance Authority,
Henry Ford Health System, 5.00%,
11/15/20, (Callable 11/15/16 @ 100) 500 523
State of Michigan, Grant Antic
Buildings, FSA, 5.25%, 9/15/20,
(Callable 9/15/17 @ 100) 250 282
Strategic Fund, Hope Network Project,
Series B, 5.13%, 9/1/13, (LOC: First
of America Bank), (Callable
9/1/08 @ 102) 1,000 1,030
------------
3,978
------------
Minnesota (2.4%)
State Municipal Power Agency, 5.00%,
10/1/30, (Callable 10/1/15 @ 100) 1,000 1,002
------------
Nebraska (3.8%)
City of Omaha, Series A, GO, ETM,
6.50%, 12/1/13 1,365 1,638
------------
Continued
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
New Mexico (4.3%)
Mortgage Finance Authority, Single
Family Mortgage, AMT,
GNMA-FNMA-FHLMC, 5.50%,
7/1/36, (Callable 1/1/15 @ 102) (a) $ 695 $ 735
University of New Mexico, Series A,
FSA, 5.00%, 6/1/21, (Callable
6/1/17 @ 100) 1,000 1,090
------------
1,825
------------
New York (3.1%)
City of New York, Series E, GO,
5.00%, 8/1/16 250 276
State Housing Finance Agency,
Economic Development and Housing,
Series A, 5.00%, 9/15/23, (Callable
9/15/15 @ 100) 1,000 1,064
------------
1,340
------------
Ohio (9.2%)
City of Columbus Sewer Revenue,
5.00%, 6/1/23, (Callable
12/1/17 @ 100) 1,000 1,076
County of Cuyahoga Capital
Improvements, GO, 5.25%, 12/1/18,
(Callable 12/1/14 @ 100) 1,500 1,666
State of Ohio, Common Schools, Series
D, GO, 5.50%, 9/15/19 1,000 1,177
------------
3,919
------------
Oklahoma (1.9%)
Tulsa International Airport,
Improvement Trust, Series B, AMT,
FGIC, 5.50%, 6/1/10 770 798
------------
Oregon (2.5%)
Sunrise Water Authority, FSA, 5.25%,
3/1/24, (Callable 3/1/14 @ 100) 1,000 1,072
------------
Pennsylvania (6.4%)
Central Dauphin School District, GO,
MBIA, 6.75%, 2/1/24, (Prerefunded
2/1/16 @ 100) 1,000 1,253
Higher Educational Facilties
Authority, Widner University, 3.85%,
7/15/13 430 435
Lancaster Higher Education Authority,
Franklin and Marshall College, 5.00%,
4/15/25, (Callable 4/15/16 @ 100) 1,000 1,038
------------
2,726
------------
Continued
86
Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Puerto Rico (5.1%)
Commonwealth of Puerto Rico, Series
A, GO, 5.00%, 7/1/30, (Mandatory
Put 7/1/12 @ 100) (a) $ 1,000 $ 1,045
Public Buildings Authority, Series I,
5.50%, 7/1/23, (Prerefunded 7/1/14 @
100) (Callable 7/1/14 @ 100) 1,000 1,139
------------
2,184
------------
Texas (2.1%)
State Public Finance Authority,
Series A, ACA, 5.00%, 2/15/28,
(Callable 2/15/14 @ 100) 1,000 902
------------
Washington (2.5%)
Metropolitan Park District of Tacoma,
GO, FGIC, 5.00%, 12/1/22, (Callable
12/1/15 @ 100) 1,000 1,052
------------
Total Municipal Bonds 41,203
------------
Municipal Demand Notes (a) (b) (0.5%)
Kentucky (0.5%)
Shelby County Lease Program, Series
A, 1.90%, 2/1/08, (LOC: U.S. Bank NA) 195 195
------------
Total Municipal Demand Notes 195
------------
Shares
-----------
Money Markets (c) (0.7%)
AIM TFIT Tax-Free Cash Reserve
Portfolio, Class C 110 --#
Dreyfus Tax Exempt Cash Management 185 --#
Goldman Sachs Financial Square
Tax-Free Money Market Fund 283,012 283
Merrill Lynch Institutional
Tax-Exempt Fund * 413 --#
------------
Total Money Markets 283
------------
Total Investments (Cost $40,139) - 97.8% 41,681
Other assets in excess of liabilities - 2.2% 941
------------
NET ASSETS - 100.0% $ 42,622
============
Continued
Notes to Schedule of Investments
* Non-income producing security.
# Amount is less than $500.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(b) Maturity date is next reset date.
(c) Investment is in Institutional Shares of underlying fund/portfolio.
The following abbreviations are used in the Schedule of 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
XLCA - XL Capital Assurance
Investment concentration as a percentage of net assets, by industry:
Airport 1.9%
Cash & Cash Equivalents 0.7%
Education 6.5%
Facilities 2.7%
General 2.9%
General Obligation 18.9%
Higher Education 15.0%
Housing 2.5%
Medical 4.4%
Municipal 3.1%
Power 2.4%
School District 20.0%
Single Family Housing 2.0%
Student Loan 2.4%
Transportation 1.6%
Utilities 3.3%
Water 7.5%
See notes to schedules of investments
and notes to financial statements.
87
Intermediate Municipal Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds (97.5%)
Alabama (5.2%)
Birmingham Baptist Medical Centers
Special Care Facilities Financing
Authority, Series A, 5.00%, 11/15/14 $ 4,000 $ 4,129
County of Mobile, FSA, GO, 5.25%,
8/1/17, (Callable 8/1/14 @ 100) (c) 3,080 3,440
------------
7,569
------------
Alaska (1.5%)
State of Alaska, Sport Fishing, CIFG,
4.25%, 4/1/15 1,000 1,061
State of Alaska, Sport Fishing, CIFG,
4.38%, 4/1/16 1,000 1,067
------------
2,128
------------
Arizona (6.4%)
City of Tempe Performing Arts Center,
AMBAC, 5.25%, 7/1/17, (Callable
7/1/14 @ 100) (c) 2,000 2,215
Health Facilities Authority, Phoenix
Children's Hospital, 3.63%, 2/1/42,
(Mandatory Put 1/31/08 @ 100) (a) 1,000 987
Mesa Street and Highway, FGIC, 6.25%,
7/1/12 1,000 1,140
Mesa Street and Highway, FGIC, 6.25%,
7/1/13, (Prerefunded 7/1/11 @ 100) 1,000 1,123
Pima County Industrial Development
Authority, 5.13%, 7/1/15 1,250 1,257
Pinal County Industrial Development
Authority, Florence West Prison LLC
Project, ACA, 5.25%, 10/1/12 220 227
Tucson Street and Highway, Series
1994-E, FGIC, 6.75%, 7/1/13 2,000 2,366
------------
9,315
------------
Arkansas (0.9%)
Southern Arkansas University, AMBAC,
4.00%, 12/1/18, (Callable
12/1/15 @ 100) 200 199
University of Arkansas, FGIC, 5.00%,
3/1/16 1,000 1,108
------------
1,307
------------
California (3.5%)
Chaffey Community College District,
Series A, GO, MBIA, 0.00%, 6/1/16 ** 750 546
City of San Jose, Series A, AMBAC,
AMT, 5.00%, 3/1/14 1,000 1,075
City of San Jose, Series A, AMBAC,
AMT, 5.00%, 3/1/15 500 537
La Canada Unified School District,
Series A, GO, MBIA, 5.50%, 8/1/24,
(Callable 8/1/14 @ 100) 375 410
Placentia-Yorba Linda Unified School
District, Series B, FGIC, GO, 5.38%,
8/1/22, (Callable 8/1/14 @ 100) 675 726
Continued
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
California, continued
State of California, GO, 5.00%,
3/1/21, (Callable 3/1/16 @ 100) $ 1,725 $ 1,814
------------
5,108
------------
Colorado (4.9%)
El Paso County School District No 38,
GO, 6.38%, 12/1/18, (Prerefunded
12/1/10 @ 100) 1,005 1,114
State Department of Corrections,
State Penitentiary II Project, CP,
AMBAC, 5.00%, 3/1/17, (Callable
3/1/16 @ 100) 4,000 4,422
Summit County School District No
Re001, FSA, GO, 5.75%, 12/1/12,
(Callable 12/1/11 @ 100) 1,465 1,634
------------
7,170
------------
Florida (0.3%)
City of Pembroke Pines, GO, MBIA,
4.00%, 9/1/15 185 194
City of Pembroke Pines, GO, MBIA,
4.13%, 9/1/16 250 263
------------
457
------------
Hawaii (2.1%)
State of Hawaii Airports, Series B,
AMT, FGIC, 8.00%, 7/1/10 2,000 2,231
State of Hawaii Highways, FSA, 5.50%,
7/1/10 765 821
------------
3,052
------------
Idaho (0.7%)
Ada & Canyon Counties Joint School
District No 3 Kuna, FSA, GO, 4.00%,
9/15/20, (Callable 3/15/18 @ 100) 1,060 1,076
------------
Illinois (6.5%)
Chicago Board of Education, Series
D3, GO, W/I, XLCA, 5.50%, 3/1/34 (a) 1,000 1,000
Chicago Metropolitan Water
Reclamation District-Greater Chicago
Capital Improvements, ETM, GO,
5.50%, 12/1/10 3,000 3,258
Chicago O'Hare International Airport,
Series A, FSA, 4.00%, 1/1/15 1,000 1,042
City of Greenville, Greenville
College Project, 3.45%, 11/1/36,
(LOC: National City Bank),
(Mandatory Put 11/1/08 @ 100) (a) 1,000 1,000
Educational Facilities Authority, The
Art Institute of Chicago, 4.13%,
3/1/30, (Mandatory Put
3/1/13 @ 100) (a) 1,000 1,043
Finance Authority, Metropolis
Project, 4.75%, 12/1/10 200 209
Finance Authority, Metropolis
Project, 5.00%, 12/1/11 250 266
Continued
88
Intermediate Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Illinois, continued
Finance Authority, Metropolis
Project, 5.00%, 12/1/12 $ 275 $ 294
Finance Authority, Metropolis
Project, 5.00%, 12/1/13 275 294
Finance Authority, Peoples Gas Light
& Coke Co., AMBAC, 4.30%, 6/1/35,
(Mandatory Put 6/1/16 @100) (a) 1,000 1,041
------------
9,447
------------
Indiana (6.4%)
Ball State University, FSA, 4.00%,
7/1/15 500 528
Fort Wayne International Airport
Building Corp., Series B, AMT, XLCA,
5.00%, 7/1/12 1,615 1,734
Fort Wayne International Airport
Building Corp., Series B, AMT, XLCA,
5.00%, 7/1/13 1,695 1,830
Health & Educational Facilities
Financing Authority, Clarian Health
Obligation Group, 5.00%, 2/15/16 500 531
Health & Educational Facilities
Financing Authority, Clarian Health
Obligation Group, 5.00%, 2/15/19,
(Callable 2/15/16 @ 100) 1,000 1,034
Municipal Power Supply Agency, Series
B, MBIA, 6.00%, 1/1/13 3,000 3,406
State Finance Authority, Series A,
5.00%, 2/1/15 250 279
------------
9,342
------------
Iowa (0.1%)
Iowa State University, Science and
Technology, 3.75%, 7/1/10 140 144
------------
Kentucky (1.8%)
Area Development Districts, City of
Versailles, Series C, CP, ETM, 2.70%,
12/1/08 250 251
Area Development Districts, City of
Versailles, Series C, CP, ETM, 3.00%,
12/1/09 255 257
Area Development Districts, Lease
Acquisition, 3.00%, 6/1/09,
(LOC: Wachovia Bank NA) 470 474
Housing Corp., Series A, AMT, 3.45%,
1/1/10 275 279
Kenton County Airport Board, AMT,
MBIA, 5.00%, 3/1/10 730 759
Munfordville Industrial Development,
Louisville Bedding Co. Project, AMT,
3.10%, 6/1/08, (LOC: Bank One NA) 300 300
Munfordville Industrial Development,
Louisville Bedding Co. Project, AMT,
3.50%, 6/1/09, (LOC: Bank One NA) 310 312
------------
2,632
------------
Continued
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Louisiana (1.7%)
City of Baton Rouge, Series A2, FSA,
4.00%, 8/1/14 $ 200 $ 211
City of Baton Rouge, Series A2, FSA,
4.00%, 8/1/16 200 210
City of Baton Rouge, Series A2, FSA,
4.00%, 8/1/18 240 249
City of Baton Rouge, Series A2, FSA,
4.00%, 8/1/20, (Callable 8/1/18 @ 100) 350 348
Public Facilities Authority,
Pennington Medical Foundation
Project, 5.00%, 7/1/16 1,000 1,056
State Citizens Property Insurance
Corp., Series B, AMBAC, 5.00%,
6/1/18, (Callable 6/1/16 @ 100) 400 416
------------
2,490
------------
Michigan (15.5%)
Detroit Water Supply System, Series
A, FSA, 5.00%, 7/1/16 500 559
Fremont Public School District, FSA,
GO, W/I, 3.25%, 5/1/14 725 741
Higher Education Facilities
Authority, Hope College Project,
4.70%, 10/1/09 200 201
Higher Education Facilities
Authority, Hope College Project,
4.80%, 10/1/10, (Callable
10/1/09 @ 100) 590 593
Higher Education Student Loan
Authority, Series XVII-I, AMT, AMBAC,
3.95%, 3/1/11 1,000 1,014
Kent Hospital Finance Authority,
Spectrum Health, Series A, 5.50%,
1/15/13, (Prerefunded 7/15/11 @ 101) 125 138
Kent Hospital Finance Authority,
Spectrum Health, Series B, 5.00%,
7/15/11 2,275 2,411
Montague Public School District, GO,
Q-SBLF, 5.50%, 5/1/12, (Prerefunded
11/1/11 @ 100) 575 636
Montague Public School District, GO,
Q-SBLF, 5.50%, 5/1/12, (Callable
11/1/11 @ 100) 430 473
State Building Authority, Facilities
Program, Series I, AMBAC, 5.00%,
10/15/29, (Mandatory Put
10/15/11 @ 100) (a) 1,500 1,618
State Building Authority, Police
Communications, ETM, 5.50%, 10/1/12 350 390
State Hospital Finance Authority,
Crittenton Hospital, Series A, 4.35%,
3/1/09 500 510
State Hospital Finance Authority,
Edward W. Sparrow Hospital, 5.25%,
11/15/09 1,165 1,214
State Hospital Finance Authority,
Edward W. Sparrow Hospital, 5.00%,
11/15/15 500 534
Continued
89
Intermediate Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Michigan, continued
State Hospital Finance Authority,
Henry Ford Health System, 5.00%,
11/15/18, (Callable 11/15/16 @ 100) $ 500 $ 532
State Hospital Finance Authority,
Holland Community Hospital, Series A,
5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505 538
State Hospital Finance Authority,
Marquette General Hospital, 5.00%,
5/15/13 1,505 1,543
State Hospital Finance Authority,
Oakwood Healthcare System, 5.00%,
7/15/15 500 531
State Housing Development Authority,
Series A, AMT, 3.95%, 12/1/12 660 667
State Housing Development Authority,
Multi-Family, AMT, GNMA, 4.15%,
4/20/11 320 324
State Housing Development Authority,
Multi-Family, AMT, GNMA, 4.40%,
4/20/13 175 179
State of Michigan, Grant Antic
Buildings, FSA, 4.50%, 9/15/15 500 547
State of Michigan, Grant Antic
Buildings, FSA, 5.25%, 9/15/18,
(Callable 9/15/17 @ 100) 500 574
State of Michigan, Trunk Line, Series
A, 5.25%, 11/1/13 600 673
Strategic Fund, International
Project, 4.75%, 8/1/11 (c) 2,240 2,372
Strategic Fund, International
Project, 5.00%, 8/1/13 820 888
Strategic Fund, Solid Waste
Management Project, AMT, 4.63%,
12/1/12 1,000 1,013
Wyandotte Electric, Series A, AMT,
MBIA, 5.00%, 10/1/13 600 648
Wyandotte Electric, Series A, AMT,
MBIA, 4.50%, 10/1/14 600 632
------------
22,693
------------
Minnesota (3.0%)
Housing Finance Agency, Series A,
AMT, GO, 3.40%, 7/1/12 (a) 1,315 1,293
Housing Finance Agency, Series F,
AMT, GO, 4.55%, 7/1/12, (Callable
7/1/11 @ 100) 1,130 1,150
St Paul Housing & Redevelopment
Authority, Smith Avenue Transit
Center, 3.50%, 6/1/12, (Callable
6/1/10 @ 100) 2,000 2,030
------------
4,473
------------
Missouri (2.4%)
City of Brentwood, Brentwood Square
Project, 4.13%, 5/1/11 245 248
Missouri State Highways & Transit
Commission, 4.00%, 5/1/15 425 451
Continued
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Missouri, continued
Missouri State Highways & Transit
Commission, 4.25%, 5/1/16 $ 525 $ 565
Missouri State Highways & Transit
Commission, 4.25%, 5/1/17 1,030 1,106
Missouri State Highways & Transit
Commission, 4.50%, 5/1/17 1,070 1,171
------------
3,541
------------
Nebraska (0.7%)
Investment Finance Authority, Single
Family Housing, Series C, AMT, 3.75%,
9/1/11 230 232
Investment Finance Authority, Single
Family Housing, Series C, AMT, 3.85%,
3/1/12 135 136
Investment Finance Authority, Single
Family Mortgage, Series D, AMT,
FNMA-FHLMC-GNMA, 4.10%, 9/1/10 255 256
Investment Finance Authority, Single
Family Mortgage, Series D, AMT,
FNMA-FHLMC-GNMA, 4.25%, 9/1/11 360 364
------------
988
------------
Nevada (1.0%)
County of Clark, FSA, GO, 4.50%,
6/1/17, (Callable 6/1/16 @ 100) 1,325 1,431
Douglas County, Solid Waste Disposal,
AMT, GO, MBIA, 3.75%, 12/1/09 100 102
------------
1,533
------------
New Jersey (1.9%)
State Turnpike Authority, Series A,
ETM, MBIA, 6.00%, 1/1/13 1,925 2,209
State Turnpike Authority, Series A,
MBIA, 6.00%, 1/1/13 575 654
------------
2,863
------------
New Mexico (3.2%)
Mortgage Finance Authority, Single
Family Mortgage, Series A2, Class I,
AMT, FNMA-FHLMC-GNMA, 3.90%,
1/1/19, (Callable 1/1/16 @ 100) 320 320
Mortgage Finance Authority, Single
Family Mortgage, AMT,
FNMA-FHLMC-GNMA, 4.05%, 7/1/26,
(Callable 7/1/15 @ 100) 620 620
Mortgage Finance Authority, Single
Family Mortgage, Series A2, Class I,
AMT, FNMA-FHLMC-GNMA, 4.40%,
1/1/27, (Callable 1/1/16 @ 100) 2,000 2,014
Mortgage Finance Authority, Single
Family Mortgage, AMT,
FNMA-FHLMC-GNMA, 5.50%, 7/1/36,
(Callable 1/1/15 @ 102) (a) 740 783
Taos County, Educational
Improvements, ETM, 3.88%, 10/1/11 565 590
Continued
90
Intermediate Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
New Mexico, continued
University of New Mexico, Series A,
FSA, 5.00%, 6/1/21, (Callable
6/1/17 @ 100) $ 365 $ 398
------------
4,725
------------
New York (0.6%)
City of New York, Series E, GO,
5.00%, 8/1/16 750 828
------------
Ohio (4.5%)
Berea, GO, 5.13%, 12/1/13 785 841
County of Cuyahoga Capital
Improvements, GO, 5.25%, 12/1/18,
(Callable 12/1/14 @ 100) 915 1,016
Housing Finance Agency, Residential
Mortgage, AMT, FNMA-GNMA, 3.55%,
3/1/10 1,000 1,012
Housing Finance Agency, Residential
Mortgage, AMT, FNMA-GNMA, 3.70%,
3/1/11 1,000 1,006
Housing Finance Agency, Residential
Mortgage, AMT, FNMA-GNMA, 4.00%,
3/1/14 500 503
Orrville City School District, School
Facilities Construction, AMBAC, GO,
4.50%, 12/1/16 600 648
State Economic Enterprise, Series 3,
AMT, 4.08%, 6/1/13 435 445
State of Ohio, Series 2007 1, FSA,
4.00%, 6/15/14 1,000 1,060
------------
6,531
------------
Oklahoma (0.3%)
Housing Finance Agency, Single Family
Housing, AMT, FNMA-FHLMC-GNMA,
4.25%, 9/1/25, (Callable 9/1/15 @ 100) 450 452
------------
Oregon (1.4%)
State Department of Transportation,
Series A, 5.25%, 11/15/16,
(Prerefunded 11/15/14 @ 100) 1,775 2,031
------------
Pennsylvania (2.0%)
Allegheny County Airport Authority,
AMT, FGIC, 5.00%, 1/1/16 1,000 1,050
Higher Educational Facilties
Authority, Widener University, 3.60%,
7/15/11 250 253
Higher Educational Facilties
Authority, Widener University, 3.75%,
7/15/12 405 410
Lehigh Northampton Airport Authority,
AMT, MBIA, 5.00%, 1/1/19, (Callable
1/1/15 @ 100) 1,175 1,242
------------
2,955
------------
Continued
Principal
Amount Value
----------- ------------
Municipal Bonds, continued
Puerto Rico (3.2%)
Commonwealth of Puerto Rico, Series
A, GO, 5.25%, 7/1/22, (Callable
7/1/16 @ 100) $ 1,000 $ 1,041
Commonwealth of Puerto Rico, Series
A, GO, 5.00%, 7/1/30, (Mandatory Put
7/1/12 @ 100) (a) 2,000 2,089
Government Development Bank, Series
C, AMT, GO, 5.25%, 1/1/15 1,500 1,594
------------
4,724
------------
South Carolina (0.7%)
Anderson County School District No 2,
Series B, GO, 6.00%, 3/1/13,
(Prerefunded 3/1/10 @ 101) 890 965
------------
Tennessee (2.6%)
Housing Development Agency, Series A,
4.00%, 7/1/10 1,100 1,114
Metropolitan Nashville Airport
Authority, Series C, AMT, FGIC,
5.38%, 7/1/14, (Callable 7/1/08 @ 102) 2,570 2,643
------------
3,757
------------
Texas (4.8%)
Dallas-Fort Worth International
Airport Facilities Improvement Corp.,
Series A, AMT, XLCA, 5.00%, 11/1/15,
(Callable 11/1/09 @ 100) 2,000 2,028
Dallas-Fort Worth International
Airport Facilities Improvement Corp.,
AMT, WI, XLCA, 5.00%, 11/1/19,
(Callable 11/1/14 @ 100) 2,500 2,550
Spring Independent School District,
Series A, GO, PSF, W/I, 5.00%, 8/15/16 1,000 1,127
Texas Municipal Power Agency, AMBAC,
4.00%, 9/1/12, (Callable 3/3/08 @ 100) 500 500
White Settlement Independent School
District, GO, PSF, 4.50%, 8/15/15 ** 1,000 772
------------
6,977
------------
Virginia (1.5%)
City of Richmond, FGIC, GO, 5.38%,
7/15/13, (Prerefunded 7/15/11 @ 101) 2,000 2,211
------------
Washington (6.2%)
Energy Northwest Washington Electric,
Series A, 5.50%, 7/1/15 3,190 3,673
Grant County Public Utility District
No 2 Priest Rapids, Series H, FSA,
5.00%, 1/1/11 (c) 2,485 2,660
King County School District No 415
Kent, Series A, GO, 5.55%, 12/1/11 2,000 2,214
Yakima County, AMBAC, GO, 5.25%,
12/1/16, (Callable 12/1/12 @ 100) 425 460
------------
9,007
------------
Total Municipal Bonds 142,491
------------
Continued
91
Intermediate Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Principal
Amount Value
----------- ------------
Municipal Demand Notes (a) (d) (2.2%)
Kentucky (0.7%)
Economic Development Finance
Authority, Republic Services, Inc.
Project, AMT, 2.27%, 2/7/08,
(LOC: Bank One NA) $ 1,000 $ 1,000
------------
Michigan (1.0%)
Macomb County Hospital Finance
Authority, Mount Clemens General
Hospital, Series A-1, 1.93%, 2/1/08,
(LOC: Comerica Bank) 1,500 1,500
------------
Ohio (0.5%)
Air Quality Development Authority,
Pollution Control, AMT, 2.05%,
2/1/08, (LOC: Wachovia Bank NA) 700 700
------------
Total Municipal Demand Notes 3,200
------------
Shares
-----------
Money Markets (b) (0.8%)
AIM TFIT Tax-Free Cash Reserve
Portfolio, Class C 110 --#
Dreyfus Tax Exempt Cash Management 1,096,444 1,096
Goldman Sachs Financial Square
Tax-Free Money Market Fund 4,831 5
Merrill Lynch Institutional
Tax-Exempt Fund 80 --#
------------
Total Money Markets 1,101
------------
Total Investments (Cost $141,278) - 100.5% 146,792
Liabilities in excess of other assets - (0.5)% (697)
------------
NET ASSETS - 100.0% $ 146,095
============
Continued
Notes to Schedule of Investments
** Rate represents the effective yield at purchase.
# Amount is less than $500.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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 Investments:
ACA - American Capital Access Holdings Ltd.
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax
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
Investment concentration as a percentage of net assets, by industry:
Airport 12.1%
Cash & Cash Equivalents 0.7%
Development 5.7%
Education 0.9%
Facilities 5.1%
General 4.6%
General Obligation 13.8%
Higher Education 3.3%
Housing 5.7%
Medical 11.8%
Multifamily Housing 0.3%
Municipal 5.2%
Pollution 1.2%
Power 7.9%
School District 6.6%
Single Family Housing 4.0%
Student Loan 0.7%
Transportation 9.8%
Utilities 0.7%
Water 0.4%
See notes to schedules of investments
and notes to financial statements.
92
Ohio Municipal Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Municipal Bonds (96.9%)
Colorado (1.9%)
Denver City & County Airport System,
Series A, FGIC, 5.00%, 11/15/19,
(Callable 11/15/16 @ 100) $ 1,765 $ 1,867
------------
Illinois (1.3%)
Chicago O'Hare International Airport,
Series A, FSA, 4.00%, 1/1/15 690 719
Chicago O'Hare International Airport,
Series A, FSA, 4.00%, 1/1/16 500 519
------------
1,238
------------
Michigan (1.0%)
Calumet Laurium & Keweenah Public
Schools, FSA, GO, W/I, 4.00%, 5/1/15 460 490
Utica Community Schools, GO, W/I,
4.00%, 5/1/20, (Callable 5/1/18 @ 100) 450 450
------------
940
------------
Ohio (85.4%)
Akron Bath Copley Joint Township
Hospital District, Akron General
Health System, Series A, 5.00%, 1/1/14 200 212
Akron Bath Copley Joint Township
Hospital District, Akron General
Health System, Series A, 5.00%, 1/1/15 320 341
Akron Bath Copley Joint Township
Hospital District, Summa Health
System, Series A, RADIAN, 5.25%,
11/15/14 @ 100) (c) 1,000 1,078
American Municipal Power-Ohio, Inc.,
AMBAC, 5.25%, 1/1/11 1,825 1,958
Beavercreek Local School District,
FGIC, GO, 6.60%, 12/1/15 1,500 1,778
Butler County, Middletown Hospital,
4.75%, 11/15/18, (Prerefunded
11/15/08 @ 101) (Callable
11/15/08 @ 101) 1,180 1,216
Cincinnati City School District,
Classroom Construction and
Improvements, FGIC, GO, 5.00%, 12/1/17 1,000 1,126
Cincinnati City School District,
Classroom Facilities Construction and
Improvements, FSA, GO, 5.25%,
12/1/14, (Prerefunded
12/1/13 @ 100) (c) 1,500 1,700
City of Cleveland, AMBAC, GO, 5.25%,
12/1/17, (Callable 12/1/14 @ 100) 1,125 1,249
City of Columbus Sewer Revenue,
5.00%, 6/1/23, (Callable
12/1/17 @ 100) 1,000 1,076
County of Cuyahoga Capital
Improvements, GO, 5.25%, 12/1/18,
(Callable 12/1/14 @ 100) 2,000 2,221
County of Cuyahoga Jail Facilities,
GO, MBIA-IBC, 5.25%, 10/1/13 3,000 3,238
Continued
Principal
Amount Value
------------ ------------
Municipal Bonds, continued
Ohio, continued
County of Erie Hospital Facilities,
Firelands Regional Medical Center,
Series A, 5.00%, 8/15/08 $ 400 $ 405
County of Erie Hospital Facilities,
Firelands Regional Medical Center,
Series A, 5.50%, 8/15/12 250 267
County of Hamilton Hospital
Facilities, Cincinnati Children's
Hospital, FGIC, 4.50%, 5/15/14 1,510 1,615
County of Lucas, AMBAC-TCRS, CR,
GO, 6.65%, 12/1/12, (Callable
6/1/08 @ 100) 100 101
Dayton-Montgomery County Port
Authority, Series A, AMT, 4.75%,
11/15/15 570 583
Dayton-Montgomery County Port
Authority, Parking Garage Project,
Series A, 5.00%, 11/15/17, (Callable
5/15/14 @ 100) 895 923
Franklin County, American Chemical
Society Project, 5.50%, 10/1/12,
(Callable 10/1/09 @ 101) 2,270 2,383
Franklin County, Online Computer
Library Center, 5.00%, 4/15/10 2,270 2,378
Franklin County, Trinity Health
Credit, 5.00%, 6/1/13 475 509
Housing Finance Agency, AMT, 3.95%,
9/1/08 250 252
Housing Finance Agency, AMT, 4.35%,
9/1/10 160 162
Housing Finance Agency, AMT, GNMA,
3.65%, 9/1/11 630 626
Housing Finance Agency, AMT, 4.55%,
9/1/11 160 163
Housing Finance Agency, AMT, GNMA,
3.30%, 9/1/30, (Callable 3/1/13 @ 100) 725 720
Housing Finance Agency, Series C,
AMT, GNMA, 4.63%, 9/1/31, (Callable
1/1/11 @ 100) 940 954
Housing Finance Agency, Residential
Mortgage, AMT, FNMA-GNMA, FSA,
3.90%, 3/1/13 1,000 1,010
Kettering City School District, FSA,
GO, 4.75%, 12/1/20, (Callable
6/1/17 @ 100) 1,860 2,004
Knox County Hospital Facilities,
RADIAN, 4.70%, 6/1/08 1,150 1,158
Miami County Hospital Facilities,
Upper Valley Medical Center, 5.25%,
VA, 5/15/15 500 537
Municipal Electric Generation Agency,
Joint Venture, AMBAC, 5.00%, 2/15/14 1,885 2,070
North Olmsted, AMBAC, GO, 6.20%,
12/1/11 3,000 3,224
Ohio State Higher Education, Series
A, GO, 4.25%, 5/1/16 2,310 2,477
Continued
93
Ohio Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Municipal Bonds, continued
Ohio, continued
Ohio State Higher Education Facility
Commission, Mount Union College
Project, 5.25%, 10/1/21, (Callable
10/1/16 @ 100) $ 980 $ 1,051
Ohio State Higher Educational
Facility Commission, Case Western
Reserve University, Series D, 6.25%,
7/1/14 6,500 7,416
Ohio State Higher Educational
Facility Commission, Denison
University Project, 5.50%, 11/1/12,
(Callable 11/1/11 @ 101) 1,000 1,108
Ohio State Higher Educational
Facility Commission, John Carroll
University, 5.25%, 11/15/14,
(Callable 11/15/13 @ 100) 1,435 1,575
Ohio State Higher Educational
Facility Commission, John Carroll
University, 5.25%, 11/15/15,
(Callable 11/15/13 @ 100) 1,490 1,624
Ohio State Higher Educational
Facility Commission, Mount Union
College Project, 4.75%, 10/1/15 385 418
Ohio State Higher Educational
Facility Commission, Mount Union
College Project, 4.75%, 10/1/16 300 326
Ohio State Higher Educational
Facility Commission, Ohio Northern
University Project, 3.50%, 5/1/10 475 483
Ohio State Higher Educational
Facility Commission, Ohio Northern
University Project, 3.88%, 5/1/13 645 663
Ohio State Higher Educational
Facility Commission, Xavier
University Project, CIFG, 5.00%,
5/1/16 2,010 2,244
Ohio State Higher Educational
Facility Commission, Xavier
University Project, CIFG, 5.00%,
5/1/19, (Callable 5/1/16 @ 100) 3,115 3,366
Ohio State University, Series B,
5.25%, 6/1/18, (Callable 6/1/13 @ 100) 5,880 6,396
Ohio State Water Development
Authority, 5.00%, 12/1/34,
(Prerefunded 6/1/14 @ 100) 1,000 1,121
Orrville City School District, School
Facilities Construction, AMBAC, GO,
4.50%, 12/1/18, (Callable
12/1/17 @ 100) 415 441
Orrville City School District, School
Facilities Construction, AMBAC, GO,
5.00%, 12/1/20, (Callable
12/1/17 @ 100) 350 378
Orrville City School District, School
Facilities Construction, AMBAC, GO,
5.00%, 12/1/22, (Callable
12/1/17 @ 100) 500 530
Continued
Principal
Amount Value
------------ ------------
Municipal Bonds, continued
Ohio, continued
Richland County Hospital Facilities,
Medcentral Health Systems, 5.00%,
11/15/15 $ 770 $ 813
State Economic Enterprise, AMT,
4.40%, 12/1/12 815 843
State of Ohio, Series 2007 1, FSA,
4.00%, 6/15/14 1,000 1,060
State of Ohio, Common Schools, GO,
5.00%, 6/15/13 1,000 1,107
State of Ohio, Republic Services
Project, AMT, 4.25%, 4/1/33,
(Mandatory Put 4/1/14 @ 100)(a) 3,470 3,461
Steubenville Hospital Facilities,
Trinity Health, 4.11%, 10/1/30 (a) 970 832
Toledo-Lucas County Port Authority,
Crocker Park Public Improvement
Project, 5.00%, 12/1/08 1,155 1,177
Toledo-Lucas County Port Authority,
Crocker Park Public Improvement
Project, 5.00%, 12/1/09 1,110 1,150
University of Akron, FGIC, 5.50%,
1/1/20, (Prerefunded 1/1/10 @ 101) 2,015 2,157
University of Cincinnati, CP, MBIA,
5.00%, 6/1/10 300 317
------------
83,771
------------
Puerto Rico (3.2%)
Commonwealth of Puerto Rico, Series
A, GO, 5.00%, 7/1/30, (Mandatory Put
7/1/12 @ 100) (a) 3,000 3,134
------------
Texas (0.6%)
Spring Independent School District,
GO, PSA, W/I, 5.00%, 8/15/15 500 562
------------
Washington (3.5%)
Energy Northwest Washington Electric,
Series A, 5.50%, 7/1/15 3,000 3,454
------------
Total Municipal Bonds 94,966
------------
Shares
------------
Money Markets (b) (1.0%)
Goldman Sachs Financial Square
Tax-Free Money Market Fund 961,667 962
------------
Total Money Markets 962
------------
Total Investments (Cost $92,798) - 97.9% 95,928
Other assets in excess of liabilities - 2.1% 2,113
------------
NET ASSETS - 100.0% $ 98,041
============
Continued
94
Ohio Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands, except shares)
- --------------------------------------------------------------------------------
Notes to Schedule of Investments
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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.
The following abbreviations are used in the Schedule of Investments:
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax Paper
CIFG - CDC IXIS Financial Guaranty Services, Inc.
CP - Certificates of Participation
CR - Custodian Receipt
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
MBIA - Municipal Bond Investors Assurance
PSF - Public School Fund
Radian - Radian Guaranty, Inc.
TCRS - Temporary Custodian Receipts
VA - Department of Veteran Affairs
W/I - When Issued
Investment concentration as a percentage of net assets, by industry:
Airport 1.9%
Cash & Cash Equivalents 1.0%
Development 3.3%
General 5.9%
General Obligation 17.1%
Higher Education 29.7%
Housing 3.0%
Medical 9.2%
Municipal 5.0%
Pollution 3.5%
Power 7.6%
School District 8.1%
Single Family Housing 1.0%
Transportation 1.6%
See notes to schedules of investments
and notes to financial statements.
Michigan Municipal Bond
Schedule of Investments
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Municipal Bonds (95.0%)
Michigan (93.9%)
Avondale School District, GO, Q-SBLF,
5.00%, 5/1/10 $ 800 $ 845
Calumet Laurium & Keweenah Public
Schools, FSA, GO, W/I, 3.75%, 5/1/13 220 231
Calumet Laurium & Keweenah Public
Schools, FSA, GO, W/I, 4.00%, 5/1/14 455 484
Canton Charter Township Capital
Improvements, FSA, GO, WI, 5.00%,
4/1/14 100 111
Chippewa Valley Schools, FSA,
GO, VA, Q-SBLF, 5.00%, 5/1/14 500 558
City of Ann Arbor Water Supply
System, Series Y, MBIA, 5.00%, 2/1/10 880 925
City of Zeeland Water Supply System,
AMT, 4.00%, 10/1/08 270 273
City of Zeeland Water Supply System,
AMT, 4.00%, 10/1/09 280 284
Clarkston Community Schools, FSA-CR,
GO, 5.25%, 5/1/29, (Prerefunded
5/1/13 @ 100) 1,000 1,121
Coldwater Electric, AMT, XLCA, 4.50%,
8/1/11 515 543
Coldwater Electric, AMT, XLCA, 4.50%,
8/1/13 570 606
County of Muskegon, Wastewater
Management System No. 1, AMT, FSA,
GO, 5.00%, 7/1/08 1,000 1,011
Detroit Sewer Disposal, MBIA, 5.50%,
7/1/16 1,500 1,719
Detroit Water Supply System, Series
A, FSA, 5.00%, 7/1/15 1,000 1,115
Detroit, Cobo Hall, MBIA, 5.00%,
9/30/08 2,000 2,038
Essexville-Hampton Public Schools,
FSA, GO, W/I, 4.00%, 5/1/14 250 266
Fremont Public School District, FSA,
GO, W/I, 3.25%, 5/1/13 330 339
Goodrich Area School District, FSA,
GO, W/I, 3.50%, 5/1/13 395 408
Grand Rapids & Kent County Joint
Building Authority, GO, 5.50%, 10/1/09 605 638
Higher Education Facilities
Authority, Hope College Project,
4.60%, 10/1/08 320 321
Higher Education Student Loan
Authority, Series XII-W, AMBAC, AMT,
4.60%, 9/1/08 1,000 1,012
Higher Education Student Loan
Authority, Series XII-W, AMBAC, AMT,
4.75%, 3/1/09 200 205
Higher Education Student Loan
Authority, Series XVII-I, AMBAC, AMT,
3.65%, 3/1/10 1,000 1,013
Kalamazoo Water Supply System, AMBAC,
W/I, 5.00%, 9/1/14 450 501
Kalamazoo Water Supply System, AMBAC,
W/I, 5.00%, 9/1/15 510 572
Continued
95
Michigan Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Municipal Bonds, continued
Michigan, continued
Kent Hospital Finance Authority,
Spectrum Health, Series A, 5.25%,
1/15/09 $ 1,075 $ 1,105
Kent Hospital Finance Authority,
Spectrum Health, Series B, 5.00%,
7/15/11 600 636
Michigan State South Central Power
Agency, AMBAC, WI, 4.50%, 11/1/11 500 519
Michigan State University, Series A,
AMBAC, 4.00%, 2/15/12 450 470
Mount Clemens Community School
District, GO, Q-SBLF, 5.50%, 5/1/12,
(Prerefunded 11/1/11 @ 100) 1,075 1,188
Municipal Bond Authority, Government
Loan Program, Series C, 5.00%,
5/1/10 (c) 1,000 1,056
Municipal Bond Authority, State Clean
Water Revolving Fund, 5.00%, 10/1/13 1,000 1,114
Ovid Elsie Area Schools, FSA, GO,
W/I, 4.00%, 5/1/15 525 560
Portage Public Schools, FSA, GO, W/I,
3.25%, 5/1/13 250 255
South Lyon Community Schools, Series
II, GO, MBIA, 5.25%, 5/1/18,
(Prerefunded 5/1/14 @ 100) 675 765
South Macomb Disposal Authority,
AMBAC, 5.00%, 9/1/08 1,115 1,133
State Building Authority, Facilities
Program, Series I, AMBAC, 5.00%,
10/15/29, (Mandatory Put
10/15/11 @ 100)(a) 1,000 1,079
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%,
11/15/12 250 265
State Hospital Finance Authority,
Henry Ford Health System, 5.00%,
11/15/14 250 268
State Hospital Finance Authority,
Holland Community Hospital, Series A,
4.15%, 1/1/12 450 461
State Hospital Finance Authority,
Marquette General Hospital, 5.00%,
5/15/10 905 924
State Hospital Finance Authority,
McLaren Health Care, Series C, 4.00%,
8/1/08 405 409
State Hospital Finance Authority,
Oakwood Healthcare System, 5.00%,
7/15/11 530 556
State Housing Development Authority,
Multi-Family, AMT, GNMA, 3.55%,
4/20/08 395 396
Continued
Principal
Amount Value
------------ ------------
Municipal Bonds, continued
Michigan, continued
State Housing Development Authority,
Parkway Meadows Project, FSA,
3.50%, 10/15/09 $ 710 $ 725
State Housing Development Authority,
Rental Housing, Series D, AMT, GO,
3.75%, 10/1/11 500 501
State Housing Development Authority,
Rental Housing, Series B, AMT, FSA,
4.00%, 4/1/12 145 146
State Housing Development Authority,
Rental Housing, Series B, AMT, FSA,
4.00%, 10/1/12 195 197
State Housing Development Authority,
Rental Housing, Series B, AMT, FSA,
4.05%, 4/1/13 100 101
State Housing Development Authority,
Rental Housing, Series B, AMT, FSA,
4.05%, 10/1/13 210 212
State of Michigan, Series A, CP,
MBIA, 5.00%, 9/1/31, (Mandatory Put
9/1/11 @ 100) (a) 2,000 2,153
State of Michigan Comprehensive
Transportation, Series A, FSA, 5.50%,
5/15/11 950 1,041
State of Michigan, Grant Antic
Buildings, FSA, 4.25%, 9/15/12 1,000 1,070
State of Michigan, Trunk Line, FGIC,
5.00%, 11/1/10 1,000 1,065
Strategic Fund, Solid Waste
Management Project, AMT, 4.63%,
12/1/12 250 253
University of Michigan Hospital,
5.00%, 12/1/08 2,000 2,048
University of Michigan Hospital,
5.00%, 12/1/09 510 535
Warren Consolidated School District,
FSA, GO, 5.00%, 5/1/16 750 846
Wayne County Airport Authority, AMT,
MBIA, 5.00%, 12/1/09 1,000 1,039
Wayne County Community College, FGIC,
GO, 5.25%, 7/1/09 1,000 1,041
Wayne Westland Community Schools, FSA,
GO, Q-SBLF, 5.00%, 5/1/10 (c) 1,000 1,059
Wyandotte Electric, Series A, AMT,
MBIA, 4.50%, 10/1/11 600 631
Wyandotte Electric, Series A, AMT,
MBIA, 5.00%, 10/1/12 600 645
------------
45,906
------------
Puerto Rico (1.1%)
Government Development Bank,
Series C, AMT, GO, 5.25%, 1/1/15 500 531
------------
Total Municipal Bonds 46,437
------------
Continued
96
Michigan Municipal Bond
Schedule of Investments, continued
January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Principal
Amount Value
------------ ------------
Municipal Demand Notes (a) (d) (1.0%)
Michigan (1.0%)
State Hospital Finance Authority,
Crittenton Hospital, 2.17%, 2/1/08,
(LOC: Comerica Bank) $ 500 $ 500
------------
Total Municipal Demand Notes 500
------------
Shares
------------
Money Markets (b) (8.1%)
AIM TFIT Tax-Free Cash Reserve
Portfolio, Class C 186 --#
Dreyfus Tax Exempt Cash Management 2,201,578 2,202
Goldman Sachs Financial Square
Tax-Free Money Market Fund 1,752,570 1,753
Merrill Lynch Institutional
Tax-Exempt Fund 391 --#
Total Money Markets 3,955
------------
Total Investments (Cost $49,833) - 104.1% 50,892
Liabilities in excess of other assets - (4.1)% (2,004)
------------
NET ASSETS - 100.0% $ 48,888
============
Notes to Schedule of Investments
# Amount is less than $500.
(a) Variable rate security. Rate presented represents rate in effect at
January 31, 2008.
(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.
Continued
The following abbreviations are used in the Schedule of 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
VA - Department of Veteran Affairs
W/I - When Issued
XLCA - XL Capital Assurance
Investment concentration as a percentage of net assets, by industry:
Airport 2.1%
Cash & Cash Equivalents 8.1%
Development 1.1%
Facilities 7.7%
General 8.8%
General Obligation 4.5%
Higher Education 3.7%
Housing 3.9%
Medical 16.4%
Multifamily Housing 0.8%
Municipal 5.2%
Pollution 2.8%
Power 6.0%
School District 13.1%
Student Loan 4.6%
Transportation 4.3%
Utilities 3.5%
Water 7.5%
See notes to schedules of investments
and notes to financial statements.
97
Fifth Third Funds
Notes to Schedules of Investments
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
Cost and appreciation (depreciation) of investments for federal income tax
purposes at January 31, 2008 is as follows:
Cost of Net
Investments Gross Gross Unrealized
for Federal Unrealized Unrealized Appreciation/
Tax Purposes Appreciation (Depreciation) (Depreciation)
------------ ------------ -------------- --------------
Small Cap Growth $ 81,953 $ 17,079 $ (11,310) $ 5,769
Mid Cap Growth 277,964 54,438 (14,138) 40,300
Quality Growth 519,720 100,150 (9,285) 90,865
Structured Large Cap Plus 162,024 29,787 (21,974) 7,813
Equity Index 166,084 229,184 (13,435) 215,749
Balanced 35,408 3,533 (866) 2,667
Micro Cap Value 50,324 2,470 (6,631) (4,161)
Small Cap Value 88,901 6,476 (10,823) (4,347)
All Cap Value 231,607 52,403 (14,572) 37,831
Disciplined Large Cap Value 523,610 90,637 (34,449) 56,188
LifeModel Aggressive(SM) 171,350 13,180 (2,559) 10,621
LifeModel Moderately Aggressive(SM) 292,350 25,852 (4,994) 20,858
LifeModel Moderate(SM) 469,708 21,351 (10,137) 11,214
LifeModel Moderately Conservative(SM) 89,348 5,409 (2,058) 3,351
LifeModel Conservative(SM) 54,242 1,102 (1,430) (328)
Strategic Income 132,486 2,983 (6,491) (3,508)
Dividend Growth 20,311 2,813 (566) 2,247
International Equity 484,603 30,604 (23,792) 6,812
High Yield 55,338 216 (3,642) (3,426)
Total Return Bond 712,773 11,554 (25,389) (13,835)
Short Term Bond 269,059 4,317 (849) 3,468
Municipal Bond 40,138 1,713 (170) 1,543
Intermediate Municipal Bond 141,278 5,602 (87) 5,515
Ohio Municipal Bond 92,798 3,308 (178) 3,130
Michigan Municipal Bond 49,833 1,063 (5) 1,058
Open futures contracts as of January 31, 2008
(Amounts in thousands, except contract amount):
Unrealized
Number of Notional Appreciation/ Market
Contracts Contract Type Amount (Depreciation) Value
--------- -------------------------------------- -------- -------------- ---------
Structured Large Cap Plus 6 S&P 500 Index, 3/19/08 $ 2,202 $ (133) $ 2,069
==== ======== ========== =========
Equity Index 14 S&P 500 Index, 3/19/08 5,030 (201) 4,829
==== ======== ========== =========
International Equity 16 Australian Dollar Futures, 3/17/08 1,392 36 1,428
46 British Pound Futures, 3/17/08 5,796 (90) 5,706
52 Euro Currency Futures, 3/17/08 9,369 289 9,658
51 FTSE 100 Index Futures, 3/20/08 6,446 (489) 5,957
47 Japanese Yen Futures, 3/17/08 5,209 328 5,537
12 Share Price Index 200 Futures, 3/20/08 1,618 (106) 1,512
183 STOXX 50 Index, 3/20/08 11,561 (1,168) 10,393
47 TOPIX Index Futures, 3/14/08 6,331 (382) 5,949
---- -------- ---------- ---------
454 47,722 (1,582) 46,140
==== ======== ========== =========
Total Return Bond 220 U.S. Treasury 5-Year Note, 3/31/08 24,183 677 24,860
110 U.S. Treasury Bonds, 3/31/08 12,869 255 13,124
---- -------- ---------- ---------
330 37,052 932 37,984
==== ======== ========== =========
Short Term Bond 125 U.S. Treasury 2-Year Note, 3/31/08 $ 26,257 $ 395 $ 26,652
==== ======== ========== =========
See notes to financial statements.
98
Fifth Third Funds
Notes to Schedules of Investments, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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 period ended January 31,
2008.
Balance at Options Options Balance at
Number of Contracts July 31, 2007 Written Expired January 31, 2008
------------- ------- ------- ----------------
Dividend Growth 0 155 (155) 0
Premiums
Dividend Growth $0 17 (17) $0
Open Credit Default Swaps as of January 31, 2008 (Amounts in thousands, except
notional amount):
Unrealized
Buy/Sell (Pay)/Receive Notional Appreciation/
Counterparty Contract Type Protection Fixed Rate Expiration Date Amount (Depreciation)
------------ ------------- ---------- ------------- --------------- --------- --------------
Total Return Bond UBS Warburg Dow Jones CDX N.A. IG9 Sell 0.60% 12/20/12 5,000,000 $(104)
See notes to financial statements.
99
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 2008 (Unaudited)
(Amounts in thousands, except per share amounts)
- --------------------------------------------------------------------------------
Small Cap Mid Cap Quality Dividend
Growth Growth Growth Growth
--------- --------- --------- ---------
Assets:
Investments, at cost $ 81,502 $ 268,756 $ 509,655 $ 20,016
Net unrealized appreciation/(depreciation) 6,220 40,842 91,118 2,291
--------- --------- --------- ---------
Investments, at value 87,722 309,598 600,773 22,307
Investment in affiliates, at value (cost $--, $8,666, $9,811,
$251, $959, $1,146, $9,245, $14,463, $2,035, $4,674, and
$7,078; respectively) -- 8,666 9,811 251
--------- --------- --------- ---------
Total Investments 87,722 318,264 610,584 22,558
Interest, dividends and other receivables 28 103 319 14
Receivable for investments sold 4,889 9,044 4,699 --
Receivable for Fund shares sold 17 3 46 --^
Receivable for variation margin on futures contracts -- -- -- --
Receivable from Advisor and affiliates -- -- -- 5
Prepaid expenses and other assets -- 52 8 21
--------- --------- --------- ---------
Total Assets 92,656 327,466 615,656 22,598
--------- --------- --------- ---------
Liabilities:
Securities sold short at value (Proceeds $--, $--, $--, $--
$--, $--, $--, $--, $60,829, $--, and $--; respectively) -- -- -- --
Cash Overdraft 437 -- -- --
Distributions payable -- -- -- --
Payable for investments purchased 1,050 16,114 8,680 --
Payable for Fund shares redeemed 11 234 256 6
Accrued expenses and other payables:
Payable to Advisor and affiliates 60 256 488 --
Distribution and administrative servicing fee 4 11 29 2
Payable for dividends on securities sold short -- -- -- --
Other 60 82 168 25
--------- --------- --------- ---------
Total Liabilities 1,622 16,697 9,621 33
--------- --------- --------- ---------
Net Assets:
Paid-in Capital 85,607 305,680 516,911 33,613
Accumulated net investment income/(loss) (412) (806) (207) (84)
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency (381) (34,947) (1,787) (13,255)
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency 6,220 40,842 91,118 2,291
--------- --------- --------- ---------
Net Assets $ 91,034 $ 310,769 $ 606,035 $ 22,565
========= ========= ========= =========
Net Assets:
Institutional Shares $ 76,372 $ 277,747 $ 510,897 $ 18,524
Class A Shares 13,293 26,999 82,649 3,436
Class B Shares 1,031 5,236 10,453 305
Class C Shares 338 787 2,036 300
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- ---------
Total $ 91,034 $ 310,769 $ 606,035 $ 22,565
========= ========= ========= =========
Shares of beneficial interest outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 9,343 21,935 30,939 735
Class A Shares 1,741 2,214 5,138 139
Class B Shares 147 461 688 13
Class C Shares 48 74 138 13
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- ---------
Total 11,279 24,684 36,903 900
========= ========= ========= =========
Net Asset Value+
Institutional Shares $ 8.17 $ 12.66 $ 16.51 $ 25.21
========= ========= ========= =========
Class A Shares - redemption price per share $ 7.64 $ 12.19 $ 16.09 $ 24.78
========= ========= ========= =========
Class B Shares - offering price per share* $ 7.03 $ 11.35 $ 15.19 $ 24.04
========= ========= ========= =========
Class C Shares - offering price per share* $ 7.04 $ 10.63 $ 14.73 $ 23.40
========= ========= ========= =========
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%
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 $ 8.04 $ 12.83 $ 16.94 $ 26.08
========= ========= ========= =========
- ----------
(a) Formerly Multi Cap Value
* 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.
See notes to financial statements.
100
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 2008 (Unaudited)
(Amounts in thousands, except per share amounts)
- --------------------------------------------------------------------------------
Disciplined
Micro Cap Small Cap All Cap Large Cap
Value Value Value (a) Value
--------- --------- --------- -----------
Assets:
Investments, at cost $ 48,301 $ 87,696 $ 221,922 $ 506,178
Net unrealized appreciation/(depreciation) (3,097) (4,288) 38,271 59,157
--------- --------- --------- -----------
Investments, at value 45,204 83,408 260,193 565,335
Investment in affiliates, at value (cost $--, $8,666, $9,811,
$251, $959, $1,146, $9,245, $14,463, $2,035, $4,674, and
$7,078; respectively) 959 1,146 9,245 14,463
--------- --------- --------- -----------
Total Investments 46,163 84,554 269,438 579,798
Interest, dividends and other receivables 14 27 400 871
Receivable for investments sold 856 1,471 -- 3,729
Receivable for Fund shares sold 51 53 243 1,473
Receivable for variation margin on futures contracts -- -- -- --
Receivable from Advisor and affiliates -- -- -- --
Prepaid expenses and other assets 38 34 32 25
--------- --------- --------- -----------
Total Assets 47,122 86,139 270,113 585,896
--------- --------- --------- -----------
Liabilities:
Securities sold short at value (Proceeds $--, $--, $--, $--
$--, $--, $--, $--, $60,829, $--, and $--; respectively) -- -- -- --
Cash Overdraft -- -- -- --
Distributions payable -- -- -- --
Payable for investments purchased 396 -- -- --
Payable for Fund shares redeemed 105 98 802 858
Accrued expenses and other payables:
Payable to Advisor and affiliates 72 59 223 444
Distribution and administrative servicing fee 7 1 38 50
Payable for dividends on securities sold short -- -- -- --
Other 126 64 174 42
--------- --------- --------- -----------
Total Liabilities 706 222 1,237 1,394
--------- --------- --------- -----------
Net Assets:
Paid-in Capital 51,419 87,269 219,447 517,545
Accumulated net investment income/(loss) 31 (21) (212) 243
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency (1,937) 2,957 11,370 7,557
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency (3,097) (4,288) 38,271 59,157
--------- --------- --------- -----------
Net Assets $ 46,416 $ 85,917 $ 268,876 $ 584,502
========= ========= ========= ===========
Net Assets:
Institutional Shares $ 28,827 $ 82,288 $ 178,097 $ 553,985
Class A Shares 12,220 2,200 61,990 23,434
Class B Shares 3,488 878 19,235 4,931
Class C Shares 1,881 551 9,554 2,152
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- -----------
Total $ 46,416 $ 85,917 $ 268,876 $ 584,502
========= ========= ========= ===========
Shares of beneficial interest outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 7,810 4,944 8,893 43,875
Class A Shares 3,562 134 3,147 1,862
Class B Shares 1,118 55 1,021 387
Class C Shares 602 35 508 173
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
--------- --------- --------- -----------
Total 13,092 5,168 13,569 46,297
========= ========= ========= ===========
Net Asset Value+
Institutional Shares $ 3.69 $ 16.64 $ 20.03 $ 12.63
========= ========= ========= ===========
Class A Shares - redemption price per share $ 3.43 $ 16.47 $ 19.70 $ 12.59
========= ========= ========= ===========
Class B Shares - offering price per share* $ 3.12 $ 15.82 $ 18.84 $ 12.73
========= ========= ========= ===========
Class C Shares - offering price per share* $ 3.12 $ 15.78 $ 18.80 $ 12.46
========= ========= ========= ===========
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%
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 $ 3.61 $ 17.34 $ 20.74 $ 13.25
========= ========= ========= ===========
Structured
Large Cap Equity
Plus Index Balanced
---------- --------- ---------
Assets:
Investments, at cost $ 220,706 $ 157,677 $ 28,301
Net unrealized appreciation/(depreciation) (658) 219,481 2,695
---------- --------- ---------
Investments, at value 220,048 377,158 30,996
Investment in affiliates, at value (cost $--, $8,666, $9,811,
$251, $959, $1,146, $9,245, $14,463, $2,035, $4,674, and
$7,078; respectively) 2,035 4,674 7,078
---------- --------- ---------
Total Investments 222,083 381,832 38,074
Interest, dividends and other receivables 185 442 73
Receivable for investments sold -- -- 1,634
Receivable for Fund shares sold --^ 385 --^
Receivable for variation margin on futures contracts 48 99 --
Receivable from Advisor and affiliates 115 -- --
Prepaid expenses and other assets 24 33 67
---------- --------- ---------
Total Assets 222,455 382,791 39,848
---------- --------- ---------
Liabilities:
Securities sold short at value (Proceeds $--, $--, $--, $--
$--, $--, $--, $--, $60,829, $--, and $--; respectively) 52,246 -- --
Cash Overdraft -- -- --
Distributions payable -- --^ --
Payable for investments purchased -- -- 2,120
Payable for Fund shares redeemed 25 472 66
Accrued expenses and other payables:
Payable to Advisor and affiliates -- 11 1
Distribution and administrative servicing fee 5 40 10
Payable for dividends on securities sold short 214 -- --
Other 81 79 32
---------- --------- ---------
Total Liabilities 52,571 602 2,229
---------- --------- ---------
Net Assets:
Paid-in Capital 170,298 171,979 72,917
Accumulated net investment income/(loss) 701 397 (122)
Accumulated net realized gain/(loss) from investment
transactions, futures and foreign currency (8,907) (9,467) (37,871)
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency 7,792 219,280 2,695
---------- --------- ---------
Net Assets $ 169,884 $ 382,189 $ 37,619
========== ========= =========
Net Assets:
Institutional Shares $ 152,728 $ 179,344 $ 12,926
Class A Shares 16,166 60,582 18,219
Class B Shares 898 3,463 5,431
Class C Shares 92 1,908 1,043
Select Shares NA 12,549 NA
Preferred Shares NA 62,796 NA
Trust Shares NA 61,547 NA
---------- --------- ---------
Total $ 169,884 $ 382,189 $ 37,619
========== ========= =========
Shares of beneficial interest outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 9,658 6,866 951
Class A Shares 1,037 2,327 1,347
Class B Shares 58 134 406
Class C Shares 6 73 78
Select Shares NA 481 NA
Preferred Shares NA 2,405 NA
Trust Shares NA 2,357 NA
---------- --------- ---------
Total 10,759 14,643 2,782
========== ========= =========
Net Asset Value+
Institutional Shares $ 15.81 $ 26.12 $ 13.60
========== ========= =========
Class A Shares - redemption price per share $ 15.59 $ 26.03 $ 13.52
========== ========= =========
Class B Shares - offering price per share* $ 15.55 $ 25.88 $ 13.36
========== ========= =========
Class C Shares - offering price per share* $ 15.55 $ 25.91 $ 13.35
========== ========= =========
Select Shares NA $ 26.11 NA
========== ========= =========
Preferred Shares NA $ 26.11 NA
========== ========= =========
Trust Shares NA $ 26.12 NA
========== ========= =========
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00%
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 $ 16.41 $ 27.40 $ 14.23
========== ========= =========
See notes to financial statements.
101
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 2008 (Unaudited)
(Amounts in thousands, except per share amounts)
- --------------------------------------------------------------------------------
LifeModel
International Strategic LifeModel Moderately
Equity Income Aggressive(SM) Aggressive(SM)
------------- --------- -------------- --------------
Assets:
Investments, at cost $ 463,390 $ 128,605 $ -- $ --
Net unrealized appreciation/(depreciation) 7,163 (3,446) -- --
------------- --------- -------------- --------------
Investments, at value 470,553 125,159 -- --
Investment in affiliates, at value (cost $20,862, $3,819,
$169,364, $290,072, $467,298, $88,426, $53,743, $936, $11,648,
$4,625, and $--; respectively) 20,862 3,819 181,971 313,208
------------- --------- -------------- --------------
Total Investments 491,415 128,978 181,971 313,208
Cash collateral for futures 2,028 -- -- --
Foreign currency, at value (cost $884, $--, $--, $--, $--,
$--, $--, $--, $--, $-- and $--; respectively) 888 -- -- --
Interest, dividends and other receivables 319 840 1 3
Receivable for investments sold -- -- -- --
Receivable for Fund shares sold 155 128 275 410
Receivable for variation margin on futures contracts 191 -- -- --
Reclaims receivable 404 -- -- --
Prepaid expenses and other assets 86 82 27 26
------------- --------- -------------- --------------
Total Assets 495,486 130,028 182,274 313,647
------------- --------- -------------- --------------
Liabilities:
Cash overdraft 24 -- -- --
Distributions payable -- 405 -- 1
Payable for investments purchased -- -- -- --
Payable for Fund shares redeemed 153 91 73 648
Accrued expenses and other payables:
Payable to Advisor and affiliates 451 36 17 7
Distribution and administrative servicing fee 10 16 27 75
Unrealized depreciation on credit default swap agreements -- -- -- --
Other 75 72 77 132
------------- --------- -------------- --------------
Total Liabilities 713 620 194 863
------------- --------- -------------- --------------
Net Assets:
Paid-in Capital 425,146 133,451 156,506 272,107
Accumulated net investment income/(loss) (4,830) (507) (3,017) (3,658)
Accumulated net realized gain/(loss) from investment
transactions, futures, swaps and foreign currency 69,787 (90) 15,984 21,199
Net unrealized appreciation/(depreciation) on
investments, futures, swaps and foreign currency 4,670 (3,446) 12,607 23,136
------------- --------- -------------- --------------
Net Assets $ 494,773 $ 129,408 $ 182,080 $ 312,784
============= ========= ============== ==============
Net Assets:
Institutional Shares $ 464,735 $ 95,669 $ 110,320 $ 138,828
Class A Shares 26,722 19,471 53,200 116,772
Class B Shares 2,377 1,244 15,846 49,859
Class C Shares 939 13,024 2,714 7,325
------------- --------- -------------- --------------
Total $ 494,773 $ 129,408 $ 182,080 $ 312,784
============= ========= ============== ==============
Shares of beneficial interest outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 34,604 8,960 7,668 10,217
Class A Shares 1,989 1,827 3,715 8,609
Class B Shares 180 117 1,134 3,695
Class C Shares 74 1,232 194 543
------------- --------- -------------- --------------
Total 36,847 12,136 12,711 23,064
============= ========= ============== ==============
Net Asset Value+
Institutional Shares $ 13.43 $ 10.68 $ 14.39 $ 13.59
============= ========= ============== ==============
Class A Shares - redemption price per share $ 13.43 $ 10.65 $ 14.32 $ 13.56
============= ========= ============== ==============
Class B Shares - offering price per share* $ 13.18 $ 10.65 $ 13.98 $ 13.49
============= ========= ============== ==============
Class C Shares - offering price per share* $ 12.80 $ 10.57 $ 13.96 $ 13.49
============= ========= ============== ==============
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 5.00%
Maximum Offering Price (100%/(100%-Maximum sales charge) of net
asset value adjusted to the nearest cent) per share
Class A Shares $ 14.14 $ 11.21 $ 15.07 $ 14.27
============= ========= ============== ==============
- ----------
(a) Formerly the Bond Fund
* 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.
See notes to financial statements.
102
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 2008 (Unaudited)
(Amounts in thousands, except per share amounts)
- --------------------------------------------------------------------------------
LifeModel
LifeModel Moderately LifeModel High Yield Total Return Short Term Municipal
Moderate(SM) Conservative(SM) Conservative(SM) Bond Bond (a) Bond Bond
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Assets:
Investments, at cost $ -- $ -- $ -- $ 54,402 $ 701,121 $ 264,432 $ 40,139
Net unrealized appreciation/
(depreciation) -- -- -- (3,426) (13,832) 3,470 1,542
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Investments, at value -- -- -- 50,976 687,289 267,902 41,681
Investment in affiliates, at
value (cost $20,862, $3,819,
$169,364, $290,072, $467,298,
$88,426, $53,743, $936,
$11,648, $4,625,
and $--; respectively) 480,922 92,699 53,914 936 11,648 4,625 --
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Total Investments 480,922 92,699 53,914 51,912 698,937 272,527 41,681
Cash collateral for futures -- -- -- -- 385 100 --
Foreign currency, at value
(cost $884, $--, $--, $--,
$--, $--, $--, $--, $--,
$-- and $--; respectively) -- -- -- -- -- -- --
Interest, dividends and other
receivables 1 3 2 1,130 4,744 1,638 500
Receivable for investments sold -- -- -- 92 116 119 460
Receivable for Fund shares sold 240 177 203 44 79 227 103
Receivable for variation margin
on futures contracts -- -- -- -- 199 49 --
Reclaims receivable -- -- -- -- -- -- --
Prepaid expenses and other
assets 31 20 20 38 47 -- 22
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Total Assets 481,194 92,899 54,139 53,216 704,507 274,660 42,766
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Liabilities:
Cash overdraft -- -- -- -- -- -- --
Distributions payable -- -- -- -- -- -- --
Payable for investments
purchased -- -- -- 102 4,223 -- --
Payable for Fund shares
redeemed 395 233 112 --^ 211 103 103
Accrued expenses and other
payables:
Payable to Advisor and
affiliates 56 13 11 35 382 119 8
Distribution and
administrative servicing
fee 57 23 12 --^ 9 2 1
Unrealized depreciation on
credit default swap agreements -- -- -- -- 104 -- --
Other 155 39 27 36 127 68 32
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Total Liabilities 663 308 162 173 5,056 292 144
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Net Assets:
Paid-in Capital 448,338 85,561 53,332 57,075 758,166 293,951 41,069
Accumulated net investment
income/(loss) (3,412) (469) (36) (35) 38 (136) 2
Accumulated net realized
gain/(loss) from investment
transactions, futures, swaps
and foreign currency 21,981 3,226 509 (571) (45,751) (23,313) 9
Net unrealized appreciation/
(depreciation) on
investments, futures, swaps
and foreign currency 13,624 4,273 172 (3,426) (13,002) 3,866 1,542
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Net Assets $ 480,531 $ 92,591 $ 53,977 $ 53,043 $ 699,451 $ 274,368 $ 42,622
============ ================ ================ ========== ============ ========== =========
Net Assets:
Institutional Shares $ 350,349 $ 41,353 $ 27,931 $ 52,649 $ 668,065 $ 264,952 $ 40,609
Class A Shares 85,954 32,041 14,880 183 25,816 9,239 1,275
Class B Shares 39,029 16,626 8,645 84 3,806 NA 708
Class C Shares 5,199 2,571 2,521 127 1,764 177 30
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Total $ 480,531 $ 92,591 $ 53,977 $ 53,043 $ 699,451 $ 274,368 $ 42,622
============ ================ ================ ========== ============ ========== =========
Shares of beneficial interest
outstanding
(Unlimited number of shares
authorized, no par value):
Institutional Shares 28,926 3,779 2,657 5,573 67,776 27,839 4,301
Class A Shares 7,106 2,932 1,418 19 2,620 971 135
Class B Shares 3,245 1,527 826 9 386 NA 75
Class C Shares 432 236 241 13 179 19 3
------------ ---------------- ---------------- ---------- ------------ ---------- ---------
Total 39,709 8,474 5,142 5,614 70,961 28,829 4,514
============ ================ ================ ========== ============ ========== =========
Net Asset Value+
Institutional Shares $ 12.11 $ 10.94 $ 10.51 $ 9.45 $ 9.86 $ 9.52 $ 9.44
============ ================ ================ ========== ============ ========== =========
Class A Shares - redemption
price per share $ 12.10 $ 10.93 $ 10.49 $ 9.43 $ 9.85 $ 9.51 $ 9.49
============ ================ ================ ========== ============ ========== =========
Class B Shares - offering
price per share* $ 12.03 $ 10.89 $ 10.47 $ 9.44 $ 9.86 NA $ 9.41
============ ================ ================ ========== ============ ========== =========
Class C Shares - offering
price per share* $ 12.04 $ 10.90 $ 10.48 $ 9.44 $ 9.87 $ 9.51 $ 9.44
============ ================ ================ ========== ============ ========== =========
Maximum Sales Charge
Class A Shares 5.00% 5.00% 5.00% 5.00% 4.75% 4.75% 3.50%
Maximum Offering Price
(100%/(100%-Maximum sales
charge) of net asset value
adjusted to the nearest
cent) per share
Class A Shares $ 12.74 $ 11.51 $ 11.04 $ 9.93 $ 10.34 $ 9.98 $ 9.83
============ ================ ================ ========== ============ ========== =========
See notes to financial statements.
103
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 2008 (Unaudited)
(Amounts in thousands, except per share amounts)
- --------------------------------------------------------------------------------
Intermediate Ohio Michigan
Municipal Municipal Municipal
Bond Bond Bond
------------ --------- ---------
Assets:
Investments, at cost $ 141,278 $ 92,798 $ 49,833
Net unrealized appreciation 5,514 3,130 1,059
------------ --------- ---------
Investments, at value 146,792 95,928 50,892
Interest, dividends and other receivables 1,306 887 534
Receivable for investments sold -- 3,221 --
Prepaid expenses and other assets 37 -- 32
------------ --------- ---------
Total Assets 148,135 100,036 51,458
------------ --------- ---------
Liabilities:
Payable for investments purchased 1,856 1,486 2,502
Payable for Fund shares redeemed 43 386 --
Accrued expenses and other payables:
Payable to Advisor and affiliates 57 46 13
Distribution and administrative servicing fee 1 5 1
Other 83 72 54
------------ --------- ---------
Total Liabilities 2,040 1,995 2,570
------------ --------- ---------
Net Assets:
Paid-in Capital 140,483 94,799 48,188
Accumulated net investment income/(loss) (26) 56 (13)
Accumulated net realized gain/(loss) from investment
transactions 124 56 (346)
Net unrealized appreciation on investments 5,514 3,130 1,059
------------ --------- ---------
Net Assets $ 146,095 $ 98,041 $ 48,888
============ ========= =========
Net Assets:
Institutional Shares $ 143,501 $ 81,216 $ 43,645
Class A Shares 2,121 13,774 4,573
Class B Shares 374 2,396 573
Class C Shares 99 655 97
------------ --------- ---------
Total $ 146,095 $ 98,041 $ 48,888
============ ========= =========
Shares of beneficial interest outstanding
(Unlimited number of shares authorized, no par value):
Institutional Shares 14,073 7,972 4,286
Class A Shares 208 1,351 450
Class B Shares 36 241 56
Class C Shares 10 64 10
------------ --------- ---------
Total 14,327 9,628 4,802
============ ========= =========
Net Asset Value+
Institutional Shares $ 10.20 $ 10.19 $ 10.18
============ ========= =========
Class A Shares - redemption price per share $ 10.20 $ 10.20 $ 10.17
============ ========= =========
Class B Shares - offering price per share* $ 10.19 $ 9.95 $ 10.17
============ ========= =========
Class C Shares - offering price per share* $ 10.20 $ 10.15 $ 10.18
============ ========= =========
Maximum Sales Charge
Class A Shares 4.75% 4.75% 4.75%
Maximum Offering Price (100%/(100%-Maximum sales
charge) of net asset value adjusted to the nearest
cent) per share
Class A Shares $ 10.71 $ 10.71 $ 10.68
============ ========= =========
- ----------
* 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.
See notes to financial statements.
104
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Small Cap Mid Cap Quality
Growth Growth Growth
--------- --------- --------
Investment Income:
Dividend income $ 143 $ 914 $ 3,578
Income from affiliates 94 295 263
Foreign tax withholding -- -- (2)
--------- --------- --------
Total Investment Income 237 1,209 3,839
--------- --------- --------
Expenses:
Investment advisory fees 424 1,376 2,651
Administration fees 105 298 574
Distribution servicing fees - Class A Shares 19 36 116
Distribution servicing fees - Class B Shares 6 29 58
Distribution servicing fees - Class C Shares 2 3 8
Distribution servicing fees - Advisor Shares 1 1 3
Administrative servicing fees - Class C Shares 1 1 3
Accounting Fees 38 56 85
Registration and filing fees 22 24 29
Transfer and dividend disbursing agent fees 33 64 158
Custody fees 11 11 18
Trustees' fees and expenses 5 12 22
Other expenses 22 62 108
--------- --------- --------
Total expenses 689 1,973 3,833
--------- --------- --------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (48) (28) (113)
--------- --------- --------
Net Expenses 641 1,945 3,720
--------- --------- --------
Net Investment Income/(Loss) (404) (736) 119
--------- --------- --------
Realized and Unrealized Gains/(Losses) from Investments:
Net realized gains on investment transactions 11,709 16,788 14,025
Change in unrealized appreciation/depreciation on investments (20,572) (38,023) 2,870
--------- --------- --------
Net realized and unrealized gains/(losses) on investments (8,863) (21,235) 16,895
--------- --------- --------
Change in net assets resulting from operations $ (9,267) $ (21,971) $ 17,014
========= ========= ========
See notes to financial statements.
105
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Dividend Micro Cap Small Cap All Cap
Growth Value Value Value
-------- --------- --------- ---------
Investment Income:
Interest income $ -- $ -- $ -- $ --
Dividend income 226 472 1,041 3,879
Income from affiliates 7 62 59 180
Foreign tax withholding -- -- (5) --^
Other income -- -- -- --
-------- --------- --------- ---------
Total Investment Income 233 534 1,095 4,059
-------- --------- --------- ---------
Expenses:
Investment advisory fees 95 327 477 1,606
Administration fees 20 56 92 278
Distribution servicing fees - Class A Shares 5 14 3 68
Distribution servicing fees - Class B Shares 2 22 5 112
Distribution servicing fees - Class C Shares 1 9 2 36
Distribution servicing fees - Advisor Shares --^ 14 1 52
Administrative servicing fees - Class C Shares --^ 3 1 12
Administrative servicing fees - Select Shares -- -- -- --
Administrative servicing fees - Preferred Shares -- -- -- --
Administrative servicing fees - Trust Shares -- -- -- --
Accounting Fees 36 37 37 55
Registration and filing fees 22 23 13 21
Transfer and dividend disbursing agent fees 17 42 24 88
Custody fees 7 49 8 11
Trustees' fees and expenses 1 3 4 11
Dividends on securities sold short -- -- -- --
Other expenses 3 39 26 132
-------- --------- --------- ---------
Total expenses 209 638 693 2,482
-------- --------- --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (115) (135) (49) (291)
-------- --------- --------- ---------
Net Expenses 94 503 644 2,191
-------- --------- --------- ---------
Net Investment Income 139 31 451 1,868
-------- --------- --------- ---------
Realized and Unrealized Gains/(Losses) from
Investments, Options, Futures and Foreign Currency:
Net realized gains/(losses) on investment, option and
foreign currency transactions 501 3,532 4,392 17,907
Net realized losses on futures transactions -- -- -- --
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on
investments, futures and foreign currency (656) (13,140) (11,186) (47,144)
-------- --------- --------- ---------
Net realized and unrealized gains/(losses) on investments,
options, futures and foreign currency (155) (9,608) (6,794) (29,237)
-------- --------- --------- ---------
Change in net assets resulting from operations $ (16) $ (9,577) $ (6,343) $ (27,369)
======== ========= ========= =========
- ----------
^ Represents fewer than five hundred dollars.
# Represents income from affiliates.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
See notes to financial statements.
106
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Disciplined Structured
Large Cap Large Cap Equity
Value Plus Index Balanced
----------- ---------- --------- --------
Investment Income:
Interest income $ -- $ -- $ -- $ 459
Dividend income 9,013 2,079 4,241 240
Income from affiliates 387 108 171 27
Foreign tax withholding -- -- -- --
Other income 1 -- 1 1
----------- ---------- --------- --------
Total Investment Income 9,401 2,187 4,413 727
----------- ---------- --------- --------
Expenses:
Investment advisory fees 2,676 690 633 200
Administration fees 579 171 365 43
Distribution servicing fees - Class A Shares 35 23 83 29
Distribution servicing fees - Class B Shares 28 5 20 30
Distribution servicing fees - Class C Shares 9 1 8 4
Distribution servicing fees - Advisor Shares 1 1 3 --^
Administrative servicing fees - Class C Shares 3 --^ 3 2
Administrative servicing fees - Select Shares -- -- 6 --
Administrative servicing fees - Preferred Shares -- -- 52 --
Administrative servicing fees - Trust Shares -- -- 85 --
Accounting Fees 85 43 85 42
Registration and filing fees 29 23 25 22
Transfer and dividend disbursing agent fees 87 38 64 37
Custody fees 13 12 19 10
Trustees' fees and expenses 20 7 13 2
Dividends on securities sold short -- 466 -- --
Other expenses 91 367 83 8
----------- ---------- --------- --------
Total expenses 3,656 1,847 1,547 429
----------- ---------- --------- --------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (207) (373) (887) (124)
----------- ---------- --------- --------
Net Expenses 3,449 1,474 660 305
----------- ---------- --------- --------
Net Investment Income 5,952 713 3,753 422
----------- ---------- --------- --------
Realized and Unrealized Gains/(Losses) from
Investments, Options, Futures and Foreign Currency:
Net realized gains/(losses) on investment, option and
foreign currency transactions 18,069 (2,349) 11,406 2,544
Net realized losses on futures transactions -- (200) (887) --
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on
investments, futures and foreign currency (58,582) (8,404) (31,962) (748)
----------- ---------- --------- --------
Net realized and unrealized gains/(losses) on investments,
options, futures and foreign currency (40,513) (10,953) (21,443) 1,796
----------- ---------- --------- --------
Change in net assets resulting from operations $ (34,561) $ (10,240) $ (17,690) $ 2,218
=========== ========== ========= ========
International Strategic LifeModel
Equity Income Aggressive(SM)
------------- --------- --------------
Investment Income:
Interest income $ 38 $ 1,711 $ --
Dividend income 5,744 2,484 --
Income from affiliates 179 179 1,973
Foreign tax withholding (218) (5) --
Other income -- -- --
------------- --------- --------------
Total Investment Income 5,743 4,369 1,973
------------- --------- --------------
Expenses:
Investment advisory fees 2,566 724 150
Administration fees 445 125 173
Distribution servicing fees - Class A Shares 30 13 72
Distribution servicing fees - Class B Shares 13 7 89
Distribution servicing fees - Class C Shares 3 53 11
Distribution servicing fees - Advisor Shares 16 27 2
Administrative servicing fees - Class C Shares 1 18 4
Administrative servicing fees - Select Shares -- -- --
Administrative servicing fees - Preferred Shares -- -- --
Administrative servicing fees - Trust Shares -- -- --
Accounting Fees 139 40 35
Registration and filing fees 26 20 15
Transfer and dividend disbursing agent fees 71 37 56
Custody fees 149 7 9
Trustees' fees and expenses 15 5 6
Dividends on securities sold short -- -- --
Other expenses 45 20 58
------------- --------- --------------
Total expenses 3,519 1,096 680
------------- --------- --------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (109) (287) (423)
------------- --------- --------------
Net Expenses 3,410 809 257
------------- --------- --------------
Net Investment Income 2,333 3,560 1,716
------------- --------- --------------
Realized and Unrealized Gains/(Losses) from
Investments, Options, Futures and Foreign Currency:
Net realized gains/(losses) on investment, option and
foreign currency transactions 90,932 2,378 (2,036)+
Net realized losses on futures transactions (3,033) -- --
Realized gain distributions from underlying funds -- -- 18,471+
Change in unrealized appreciation/depreciation on
investments, futures and foreign currency (117,369) (4,456) (25,823)
------------- --------- --------------
Net realized and unrealized gains/(losses) on investments,
options, futures and foreign currency (29,470) (2,078) (9,388)
------------- --------- --------------
Change in net assets resulting from operations $ (27,137) $ 1,482 $ (7,672)
============= ========= ==============
See notes to financial statements.
107
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel LifeModel
Moderately LifeModel Moderately LifeModel
Aggressive(SM) Moderate(SM) Conservative(SM) Conservative(SM)
-------------- ------------ ---------------- ----------------
Investment Income:
Interest income $ -- $ -- $ -- $ --
Dividend income -- -- -- --
Income from affiliates 4,478 8,346 1,754 1,127
Other income -- -- -- --
-------------- ------------ ---------------- ----------------
Total Investment Income 4,478 8,346 1,754 1,127
-------------- ------------ ---------------- ----------------
Expenses:
Investment advisory fees 254 383 74 40
Administration fees 294 442 86 47
Distribution servicing fees - Class A Shares 158 115 43 18
Distribution servicing fees - Class B Shares 277 211 91 46
Distribution servicing fees - Class C Shares 32 22 11 11
Distribution servicing fees - Advisor Shares 3 1 --^ --^
Administrative servicing fees - Class C Shares 11 7 4 3
Accounting Fees 50 67 31 30
Registration and filing fees 20 20 18 18
Transfer and dividend disbursing agent fees 102 94 30 19
Custody fees 11 13 7 6
Trustees' fees and expenses 11 16 3 2
Other expenses 100 104 20 9
-------------- ------------ ---------------- ----------------
Total expenses 1,323 1,495 418 249
-------------- ------------ ---------------- ----------------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (706) (935) (230) (150)
Distribution services - Class A Shares and Class B Shares
waived -- -- -- --
-------------- ------------ ---------------- ----------------
Net Expenses 617 560 188 99
-------------- ------------ ---------------- ----------------
Net Investment Income 3,861 7,786 1,566 1,028
-------------- ------------ ---------------- ----------------
Realized and Unrealized Gains/(Losses) from
Investments, Futures, Foreign Currency and Swaps:
Net realized gains/(losses) on investment and
foreign currency transactions (829)+ (2,005)+ (139)+ (221)+
Net realized gains on futures and swaps transactions -- -- -- --
Realized gain distributions from underlying funds 24,039+ 26,089+ 4,028+ 1,169+
Change in unrealized appreciation/depreciation on
investments, futures, foreign currency and swaps (35,573) (37,624) (5,822) (1,583)
-------------- ------------ ---------------- ----------------
Net realized and unrealized gains/(losses) on
investments, futures, foreign currency and swaps (12,363) (13,540) (1,933) (635)
-------------- ------------ ---------------- ----------------
Change in net assets resulting from operations $ (8,502) $ (5,754) $ (367) $ 393
============== ============ ================ ================
- ----------
(a) Formerly the Bond Fund
^ Represents fewer than five hundred dollars.
# Represents income from affiliates.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
See notes to financial statements.
108
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
High Yield Total Return Short Term Municipal
Bond Bond (a) Bond Bond
---------- ------------ ---------- ---------
Investment Income:
Interest income $ 2,679 $ 11,706 $ 6,324 $ 989
Dividend income -- -- -- 6
Income from affiliates 31 197 91 --
Other income -- 3 7 --
---------- ------------ ---------- ---------
Total Investment Income 2,710 11,906 6,422 995
---------- ------------ ---------- ---------
Expenses:
Investment advisory fees 232 1,277 687 125
Administration fees 57 369 238 39
Distribution servicing fees - Class A Shares 1 19 12 2
Distribution servicing fees - Class B Shares 1 14 -- 4
Distribution servicing fees - Class C Shares --^ 3 1 --^
Distribution servicing fees - Advisor Shares --^ --^ -- --^
Administrative servicing fees - Class C Shares --^ 1 --^ --^
Accounting Fees 41 75 52 40
Registration and filing fees 13 24 25 17
Transfer and dividend disbursing agent fees 14 56 39 12
Custody fees 4 15 10 5
Trustees' fees and expenses 3 9 8 2
Other expenses 16 44 34 11
---------- ------------ ---------- ---------
Total expenses 382 1,906 1,106 257
---------- ------------ ---------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (135) (371) (214) (113)
Distribution services - Class A Shares and Class B Shares
waived -- -- -- --
---------- ------------ ---------- ---------
Net Expenses 247 1,535 892 144
---------- ------------ ---------- ---------
Net Investment Income 2,463 10,371 5,530 851
---------- ------------ ---------- ---------
Realized and Unrealized Gains/(Losses) from
Investments, Futures, Foreign Currency and Swaps:
Net realized gains/(losses) on investment and
foreign currency transactions (120) (903) 199 37
Net realized gains on futures and swaps transactions -- 1,601 88 --
Realized gain distributions from underlying funds -- -- -- --
Change in unrealized appreciation/depreciation on
investments, futures, foreign currency and swaps (484) 9,324 5,668 784
---------- ------------ ---------- ---------
Net realized and unrealized gains/(losses) on
investments, futures, foreign currency and swaps (604) 10,022 5,955 821
---------- ------------ ---------- ---------
Change in net assets resulting from operations $ 1,859 $ 20,393 $ 11,485 $ 1,672
========== ============ ========== =========
Intermediate Ohio Michigan
Municipal Municipal Municipal
Bond Bond Bond
------------ --------- ---------
Investment Income:
Interest income $ 3,150 $ 2,077 $ 867
Dividend income 11 18 8
Income from affiliates -- -- --
Other income -- -- --
------------ --------- ---------
Total Investment Income 3,161 2,095 875
------------ --------- ---------
Expenses:
Investment advisory fees 410 273 110
Administration fees 129 86 42
Distribution servicing fees - Class A Shares 2 18 6
Distribution servicing fees - Class B Shares 2 13 3
Distribution servicing fees - Class C Shares --^ 3 --^
Distribution servicing fees - Advisor Shares -- -- --
Administrative servicing fees - Class C Shares --^ 1 --^
Accounting Fees 46 40 41
Registration and filing fees 23 22 15
Transfer and dividend disbursing agent fees 23 19 12
Custody fees 9 7 5
Trustees' fees and expenses 5 3 2
Other expenses 28 22 15
------------ --------- ---------
Total expenses 677 507 251
------------ --------- ---------
Less: Waiver and/or reimbursement from
Advisor and/or affiliates (178) (80) (76)
Distribution services - Class A Shares and Class B Shares
waived (1) -- (2)
------------ --------- ---------
Net Expenses 498 427 173
------------ --------- ---------
Net Investment Income 2,663 1,668 702
------------ --------- ---------
Realized and Unrealized Gains/(Losses) from
Investments, Futures, Foreign Currency and Swaps:
Net realized gains/(losses) on investment and
foreign currency transactions 179 27 4
Net realized gains on futures and swaps transactions -- -- --
Realized gain distributions from underlying funds -- -- --
Change in unrealized appreciation/depreciation on
investments, futures, foreign currency and swaps 3,873 2,646 1,397
------------ --------- ---------
Net realized and unrealized gains/(losses) on
investments, futures, foreign currency and swaps 4,052 2,673 1,401
------------ --------- ---------
Change in net assets resulting from operations $ 6,715 $ 4,341 $ 2,103
============ ========= =========
See notes to financial statements.
109
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
Small Cap Growth Mid Cap Growth
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income/(loss) $ (404) $ (959) $ (736) $ (1,962)
Net realized gains on investment and option transactions 11,709 31,785 16,788 48,398
Net change in unrealized appreciation/depreciation on
investments (20,572) (952) (38,023) 15,159
Increase from payment by the Advisor -- -- -- 180
----------- --------- ----------- ---------
Change in net assets resulting from operations (9,267) 29,874 (21,971) 61,775
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
Distributions from net realized gains:
Institutional Shares (33,960) (28,825) (43,019) (66,351)
Class A Shares (5,435) (3,859) (4,512) (6,625)
Class B Shares (452) (318) (931) (1,326)
Class C Shares (153) (93) (146) (236)
Advisor Shares -- (101) -- (156)
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (40,000) (33,196) (48,608) (74,694)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions 9,508 (12,946) 31,845 1,410
----------- --------- ----------- ---------
Change in net assets (39,759) (16,268) (38,734) (11,509)
Net Assets:
Beginning of period 130,793 147,061 349,503 361,012
----------- --------- ----------- ---------
End of period $ 91,034 $ 130,793 $ 310,769 $ 349,503
=========== ========= =========== =========
Accumulated net investment income/(loss) $ (412) $ (8) $ (806) $ --
=========== ========= =========== =========
- ----------
(a) Unaudited
^ Represents fewer than five hundred dollars.
See notes to financial statements.
110
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
Quality Growth Dividend Growth
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 119 $ 3,278 $ 139 $ 520
Net realized gains on investment and option transactions 14,025 95,370 501 1,314
Net change in unrealized appreciation/depreciation on
investments 2,870 36,701 (656) 1,855
Increase from payment by the Advisor -- 748 -- 66
----------- --------- ----------- ---------
Change in net assets resulting from operations 17,014 136,097 (16) 3,755
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (376) (2,837) (205) (412)
Class A Shares -- (377) (38) (76)
Class B Shares -- (8) (2) (4)
Class C Shares -- (1) (2) (4)
Advisor Shares -- (5) --^ --^
Distributions from net realized gains:
Institutional Shares (73,563) (8,983) -- --
Class A Shares (12,509) (1,649) -- --
Class B Shares (1,645) (202) -- --
Class C Shares (335) (47) -- --
Advisor Shares -- (35) -- --
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (88,428) (14,144) (247) (496)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions 33,791 (228,195) (710) (923)
----------- --------- ----------- ---------
Change in net assets (37,623) (106,242) (973) 2,336
Net Assets:
Beginning of period 643,658 749,900 23,538 21,202
----------- --------- ----------- ---------
End of period $ 606,035 $ 643,658 $ 22,565 $ 23,538
=========== ========= =========== =========
Accumulated net investment income/(loss) $ (207) $ 50 $ (84) $ 24
=========== ========= =========== =========
Micro Cap Value Small Cap Value
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income/(loss) $ 31 $ (34) $ 451 $ 759
Net realized gains on investment and option transactions 3,532 18,680 4,392 12,223
Net change in unrealized appreciation/depreciation on
investments (13,140) (4,850) (11,186) 1,351
Increase from payment by the Advisor -- -- -- --
----------- --------- ----------- ---------
Change in net assets resulting from operations (9,577) 13,796 (6,343) 14,333
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares -- (409) (890) (510)
Class A Shares -- (85) (16) (9)
Class B Shares -- (8) -- (2)
Class C Shares -- (3) -- (1)
Advisor Shares -- (63) -- (3)
Distributions from net realized gains:
Institutional Shares (14,389) (14,807) (12,044) (15,397)
Class A Shares (6,282) (3,754) (287) (303)
Class B Shares (1,766) (1,399) (131) (155)
Class C Shares (1,025) (699) (79) (97)
Advisor Shares -- (3,728) -- (136)
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (23,462) (24,955) (13,447) (16,613)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions (864) (27,752) (10,063) (4,132)
----------- --------- ----------- ---------
Change in net assets (33,903) (38,911) (29,853) (6,412)
Net Assets:
Beginning of period 80,319 119,230 115,770 122,182
----------- --------- ----------- ---------
End of period $ 46,416 $ 80,319 $ 85,917 $ 115,770
=========== ========= =========== =========
Accumulated net investment income/(loss) $ 31 $ -- $ (21) $ 434
=========== ========= =========== =========
See notes to financial statements.
111
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
Disciplined
All Cap Value (a) Large Cap Value
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 1,868 $ 4,463 $ 5,952 $ 9,685
Net realized gains/(losses) on investment and foreign
currency transactions 17,907 43,764 18,069 49,838
Net realized gains/(losses) on futures transactions -- -- -- --
Net change in unrealized appreciation/depreciation on
investments, futures and foreign currency (47,144) 14,549 (58,582) 24,718
Increase from payment by the Advisor -- -- -- 97
----------- --------- ----------- ---------
Change in net assets resulting from operations (27,369) 62,776 (34,561) 84,338
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (1,679) (3,577) (6,367) (9,176)
Class A Shares (422) (487) (246) (333)
Class B Shares (63) (121) (25) (30)
Class C Shares (35) (35) (11) (11)
Advisor Shares (72) (307) (1) (3)
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 (30,183) (37,807) (39,371) (83,952)
Class A Shares (10,928) (6,142) (1,695) (3,384)
Class B Shares (3,268) (3,665) (347) (819)
Class C Shares (1,557) (914) (151) (292)
Advisor Shares -- (5,236) -- (44)
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (48,207) (58,291) (48,214) (98,044)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions 11,373 4,696 (20,720) 89,070
----------- --------- ----------- ---------
Change in net assets (64,203) 9,181 (103,495) 75,364
Net Assets:
Beginning of period 333,079 323,898 687,997 612,633
----------- --------- ----------- ---------
End of period $ 268,876 $ 333,079 $ 584,502 $ 687,997
=========== ========= =========== =========
Accumulated net investment income/(loss) $ (212) $ 191 $ 243 $ 941
=========== ========= =========== =========
- ----------
(a) Formerly the Multi Cap Value Fund.
(b) Unaudited
^ Represents fewer than five hundred dollars.
See notes to financial statements.
112
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
Structured
Large Cap Plus Equity Index
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 713 $ 2,136 $ 3,753 $ 7,384
Net realized gains/(losses) on investment and foreign
currency transactions (2,349) 26,176 11,406 20,348
Net realized gains/(losses) on futures transactions (200) 1,024 (887) 2,137
Net change in unrealized appreciation/depreciation on
investments, futures and foreign currency (8,404) (724) (31,962) 32,586
Increase from payment by the Advisor -- -- -- --
----------- --------- ----------- ---------
Change in net assets resulting from operations (10,240) 28,612 (17,690) 62,455
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (583) (1,485) (1,949) (3,548)
Class A Shares (27) (122) (579) (1,052)
Class B Shares -- (1) (18) (35)
Class C Shares -- -- (10) (18)
Advisor Shares --^ -- (7) (27)
Select Shares NA NA (151) (316)
Preferred Shares NA NA (638) (1,143)
Trust Shares NA NA (585) (1,096)
Distributions from net realized gains:
Institutional Shares (857) (679) -- --
Class A Shares (93) (75) -- --
Class B Shares (5) (4) -- --
Class C Shares (1) -- -- --
Advisor Shares -- -- -- --
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (1,566) (2,366) (3,937) (7,235)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions (19,043) (14,014) (19,216) (39,859)
----------- --------- ----------- ---------
Change in net assets (30,849) 12,232 (40,843) 15,361
Net Assets:
Beginning of period 200,733 188,501 423,032 407,671
----------- --------- ----------- ---------
End of period $ 169,884 $ 200,733 $ 382,189 $ 423,032
=========== ========= =========== =========
Accumulated net investment income/(loss) $ 701 $ 598 $ 397 $ 581
=========== ========= =========== =========
Balanced International Equity
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 422 $ 1,865 $ 2,333 $ 6,267
Net realized gains/(losses) on investment and foreign
currency transactions 2,544 3,833 90,932 43,928
Net realized gains/(losses) on futures transactions -- (3) (3,033) 3,024
Net change in unrealized appreciation/depreciation on
investments, futures and foreign currency (748) 2,710 (117,369) 55,245
Increase from payment by the Advisor -- 190 -- 134
----------- --------- ----------- ---------
Change in net assets resulting from operations 2,218 8,595 (27,137) 108,598
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (422) (826) (14,619) (3,674)
Class A Shares (472) (781) (857) (208)
Class B Shares (94) (117) (58) (11)
Class C Shares (18) (21) (19) (5)
Advisor Shares (1) (3) -- (64)
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 -- -- (29,177) (8,232)
Class A Shares -- -- (1,898) (542)
Class B Shares -- -- (173) (45)
Class C Shares -- -- (56) (20)
Advisor Shares -- -- -- (191)
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (1,007) (1,748) (46,857) (12,992)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions (21,029) (31,764) 64,774 (66,740)
----------- --------- ----------- ---------
Change in net assets (19,818) (24,917) (9,220) 28,866
Net Assets:
Beginning of period 57,437 82,354 503,993 475,127
----------- --------- ----------- ---------
End of period $ 37,619 $ 57,437 $ 494,773 $ 503,993
=========== ========= =========== =========
Accumulated net investment income/(loss) $ (122) $ 463 $ (4,830) $ 8,390
=========== ========= =========== =========
See notes to financial statements.
113
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel
Strategic Income Aggressive(SM)
------------------------ -------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 3,560 $ 7,298 $ 1,716 $ 1,331
Net realized gains/(losses) on investment transactions 2,378 1,943 (2,036)+ 537+
Realized gain distributions from underlying funds NA NA 18,471+ 14,140+
Net change in unrealized appreciation/depreciation on
investments (4,456) (1,791) (25,823) 14,305
----------- --------- ----------- ---------
Change in net assets resulting from operations 1,482 7,450 (7,672) 30,313
----------- --------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (3,050) (5,549) (3,784) (870)
Class A Shares (312) (216) (1,680) (318)
Class B Shares (31) (65) (411) (30)
Class C Shares (332) (702) (70) (5)
Advisor Shares (245) (852) -- (4)
Distributions from net realized gains:
Institutional Shares (3,177) (1,091) (8,296) (2,955)
Class A Shares (621) (43) (4,002) (1,460)
Class B Shares (39) (17) (1,226) (498)
Class C Shares (405) (180) (205) (79)
Advisor Shares -- (195) -- (26)
----------- --------- ----------- ---------
Change in net assets from shareholder distributions (8,212) (8,910) (19,674) (6,245)
----------- --------- ----------- ---------
Change in net assets from Fund share transactions (19,550) 3,102 9,836 3,369
----------- --------- ----------- ---------
Change in net assets (26,280) 1,642 (17,510) 27,437
Net Assets:
Beginning of period 155,688 154,046 199,590 172,153
----------- --------- ----------- ---------
End of period $ 129,408 $ 155,688 $ 182,080 $ 199,590
=========== ========= =========== =========
Accumulated net investment income/(loss) $ (507) $ (97) $ (3,017) $ 1,212
=========== ========= =========== =========
- ----------
(a) Unaudited
^ Represents fewer than five hundred dollars.
+ Represents realized gains/(losses) from investment transactions with
affiliates.
See notes to financial statements.
114
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel LifeModel
Moderately Aggressive(SM) Moderate(SM)
-------------------------- -------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- ----------- ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 3,861 $ 4,830 $ 7,786 $ 12,475
Net realized gains/(losses) on investment transactions (829)+ 3,573+ (2,005)+ 6,016+
Realized gain distributions from underlying funds 24,039+ 20,710+ 26,089+ 23,819+
Net change in unrealized appreciation/depreciation
on investments (35,573) 18,609 (37,624) 20,732
----------- ----------- ----------- ---------
Change in net assets resulting from operations (8,502) 47,722 (5,754) 63,042
----------- ----------- ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (4,326) (2,532) (10,335) (9,595)
Class A Shares (3,523) (1,912) (2,486) (2,218)
Class B Shares (1,303) (410) (956) (678)
Class C Shares (196) (66) (132) (96)
Advisor Shares (5) (22) (2) (9)
Distributions from net realized gains:
Institutional Shares (10,424) (3,623) (20,516) (8,747)
Class A Shares (8,979) (3,243) (5,227) (2,291)
Class B Shares (3,903) (1,409) (2,354) (1,032)
Class C Shares (591) (228) (326) (146)
Advisor Shares -- (46) -- (11)
----------- ----------- ----------- ---------
Change in net assets from shareholder distributions (33,250) (13,491) (42,334) (24,823)
----------- ----------- ----------- ---------
Change in net assets from Fund share transactions 12,082 (18,844) 16,419 (46,661)
----------- ----------- ----------- ---------
Change in net assets (29,670) 15,387 (31,669) (8,442)
Net Assets:
Beginning of period 342,454 327,067 512,200 520,642
----------- ----------- ----------- ---------
End of period $ 312,784 $ 342,454 $ 480,531 $ 512,200
=========== =========== =========== =========
Accumulated net investment income/(loss) $ (3,658) $ 1,834 $ (3,412) $ 2,713
=========== =========== =========== =========
LifeModel LifeModel
Moderately Conservative(SM) Conservative(SM)
--------------------------- -------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- ------------ ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 1,566 $ 2,689 $ 1,028 $ 1,833
Net realized gains/(losses) on investment transactions (139)+ 1,714+ (221)+ 346+
Realized gain distributions from underlying funds 4,028+ 3,989+ 1,169+ 1,100+
Net change in unrealized appreciation/depreciation
on investments (5,822) 2,577 (1,583) 1,103
----------- ------------ ----------- ---------
Change in net assets resulting from operations (367) 10,969 393 4,382
----------- ------------ ----------- ---------
Distributions to shareholders from net investment income:
Institutional Shares (1,190) (1,282) (703) (942)
Class A Shares (887) (999) (351) (546)
Class B Shares (395) (387) (180) (277)
Class C Shares (61) (59) (54) (90)
Advisor Shares -- (2) -- (2)
Distributions from net realized gains:
Institutional Shares (2,365) (1,188) (748) (509)
Class A Shares (1,865) (1,035) (393) (315)
Class B Shares (993) (557) (246) (206)
Class C Shares (154) (88) (74) (67)
Advisor Shares -- (2) -- (1)
----------- ------------ ----------- ---------
Change in net assets from shareholder distributions (7,910) (5,599) (2,749) (2,955)
----------- ------------ ----------- ---------
Change in net assets from Fund share transactions 2,194 (10,466) 4,300 (3,986)
----------- ------------ ----------- ---------
Change in net assets (6,083) (5,096) 1,944 (2,559)
Net Assets:
Beginning of period 98,674 103,770 52,033 54,592
----------- ------------ ----------- ---------
End of period $ 92,591 $ 98,674 $ 53,977 $ 52,033
=========== ============ =========== =========
Accumulated net investment income/(loss) $ (469) $ 498 $ (36) $ 224
=========== ============ =========== =========
See notes to financial statements.
115
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
High Yield Bond Total Return Bond (a) Short Term Bond
----------------------- -------------------------- -------------------------
Six Months Year Six Months Year Six Months Year
ended ended ended ended ended ended
January 31, July 31, January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- ------------ ----------- ---------
Change in Net Assets:
Operations:
Net investment income $ 2,463 $ 4,665 $ 10,371 $ 12,591 $ 5,530 $ 10,492
Net realized gains/(losses) on investment
and foreign currency transactions (120) (451) (903) 1,239 199 (538)
Net realized gains/(losses) on futures and
swaps transactions -- -- 1,601 (70) 88 --
Net change in unrealized appreciation/
depreciation on investments, futures,
foreign currency and swaps (484) (938) 9,324 (566) 5,668 2,845
Increase from payment by the Advisor -- -- -- 124 -- --
----------- --------- ----------- ------------ ----------- ---------
Change in net assets resulting from operations 1,859 3,276 20,393 13,318 11,485 12,799
----------- --------- ----------- ------------ ----------- ---------
Distributions to shareholders from net
investment income:
Institutional Shares (2,523) (4,610) (9,855) (12,368) (5,477) (10,428)
Class A Shares (17) (13) (358) (450) (184) (412)
Class B Shares (4) (8) (53) (91) NA NA
Class C Shares (4) (5) (15) (10) (3) (6)
Advisor Shares --^ (1) (4) (9) -- --^
Distributions to shareholders from paid-in
capital (tax return of capital):
Institutional Shares -- -- -- -- -- (224)
Class A Shares -- -- -- -- -- (10)
Class C Shares -- -- -- -- -- --^
Advisor Shares -- -- -- -- -- --^
Distributions from net realized gains:
Institutional Shares -- (213) -- -- -- --
Class A Shares -- (1) -- -- -- --
Class B Shares -- --^ -- -- NA NA
Class C Shares -- --^ -- -- -- --
Advisor Shares -- --^ -- -- -- --
----------- --------- ----------- ------------ ----------- ---------
Change in net assets from shareholder
distributions (2,548) (4,851) (10,285) (12,928) (5,664) (11,080)
----------- --------- ----------- ------------ ----------- ---------
Change in net assets from Fund share
transactions (14,933) 3,819 448,358 (26,437) (8,665) 4,500
----------- --------- ----------- ------------ ----------- ---------
Change in net assets (15,622) 2,244 458,466 (26,047) (2,844) 6,219
Net Assets:
Beginning of period 68,665 66,421 240,985 267,032 277,212 270,993
End of period $ 53,043 $ 68,665 $ 699,451 $ 240,985 $ 274,368 $ 277,212
=========== ========= =========== ============ =========== =========
Accumulated net investment income/(loss) $ (35) $ 50 $ 38 $ 83 $ (136) $ (2)
=========== ========= =========== ============ =========== =========
- ----------
(a) Formerly the Bond Fund
(b) Unaudited
^ Represents fewer than five hundred dollars.
See notes to financial statements.
116
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
Intermediate
Municipal Bond Municipal Bond
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- --------
Change in Net Assets:
Operations:
Net investment income $ 851 $ 1,627 $ 2,663 $ 5,749
Net realized gains/(losses) on investment
and foreign currency transactions 37 259 179 845
Net realized gains/(losses) on futures and
swaps transactions -- -- -- --
Net change in unrealized appreciation/
depreciation on investments, futures,
foreign currency and swaps 784 (282) 3,873 (902)
Increase from payment by the Advisor -- 91 -- --
----------- --------- ----------- --------
Change in net assets resulting from operations 1,672 1,695 6,715 5,692
----------- --------- ----------- --------
Distributions to shareholders from net
investment income:
Institutional Shares (896) (1,556) (2,654) (5,652)
Class A Shares (24) (48) (35) (77)
Class B Shares (12) (28) (6) (4)
Class C Shares (1) (1) (1) (2)
Advisor Shares (2) (5) -- --^
Distributions to shareholders from paid-in
capital (tax return of capital):
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
Distributions from net realized gains:
Institutional Shares (138) (419) (383) (484)
Class A Shares (4) (14) (6) (7)
Class B Shares (2) (10) (1) (1)
Class C Shares --^ --^ --^ --^
Advisor Shares -- (2) -- --^
----------- --------- ----------- --------
Change in net assets from shareholder
distributions (1,079) (2,083) (3,086) (6,227)
----------- --------- ----------- --------
Change in net assets from Fund share
transactions (4,515) 4,763 (9,047) 15,586
----------- --------- ----------- --------
Change in net assets (3,922) 4,375 (5,418) 16,121
Net Assets:
Beginning of period 46,544 42,169 151,513 167,634
End of period $ 42,622 $ 46,544 $ 146,095 $151,513
=========== ========= =========== ========
Accumulated net investment income/(loss) $ 2 $ 86 $ (26) $ 7
=========== ========= =========== ========
Ohio Michigan
Municipal Bond Municipal Bond
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- --------
Change in Net Assets:
Operations:
Net investment income $ 1,668 $ 3,725 $ 702 $ 1,548
Net realized gains/(losses) on investment
and foreign currency transactions 27 521 4 (66)
Net realized gains/(losses) on futures and
swaps transactions -- -- -- --
Net change in unrealized appreciation/
depreciation on investments, futures,
foreign currency and swaps 2,646 (818) 1,397 166
Increase from payment by the Advisor -- 135 -- --
----------- --------- ----------- --------
Change in net assets resulting from operations 4,341 3,563 2,103 1,648
----------- --------- ----------- --------
Distributions to shareholders from net
investment income:
Institutional Shares (1,545) (2,914) (642) (1,405)
Class A Shares (256) (676) (63) (136)
Class B Shares (36) (80) (6) (12)
Class C Shares (10) (25) (2) (4)
Advisor Shares -- --^ -- --^
Distributions to shareholders from paid-in
capital (tax return of capital):
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares -- -- -- --
Distributions from net realized gains:
Institutional Shares (324) (84) -- --
Class A Shares (54) (22) -- --
Class B Shares (10) (3) -- --
Class C Shares (3) (1) -- --
Advisor Shares -- --^ -- --
----------- --------- ----------- --------
Change in net assets from shareholder
distributions (2,238) (3,805) (713) (1,557)
----------- --------- ----------- --------
Change in net assets from Fund share
transactions (4,709) (12,505) (1,631) (7,166)
----------- --------- ----------- --------
Change in net assets (2,606) (12,747) (241) (7,075)
Net Assets:
Beginning of period 100,647 113,394 49,129 56,204
End of period $ 98,041 $ 100,647 $ 48,888 $ 49,129
=========== ========= =========== ========
Accumulated net investment income/(loss) $ 56 $ 235 $ (13) $ (2)
=========== ========= =========== ========
See notes to financial statements.
117
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Small Cap Growth Mid Cap Growth
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 3,171 $ 17,553 $ 12,773 $ 40,251
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 9,066 --
Dividends reinvested 33,829 28,551 42,839 66,135
Shares redeemed (31,513) (57,730) (37,336) (100,373)
----------- --------- ----------- ---------
Total Institutional Shares 5,487 (11,626) 27,342 6,013
----------- --------- ----------- ---------
Class A Shares
Shares issued 320 2,120 1,194 1,293
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 1,817 --
Shares issued in conversion from Advisor Class @ 340 -- 2,477 --
Dividends reinvested 5,303 3,793 4,385 6,389
Shares redeemed (1,910) (7,035) (5,690) (11,596)
----------- --------- ----------- ---------
Total Class A Shares 4,053 (1,122) 4,183 (3,914)
----------- --------- ----------- ---------
Class B Shares
Shares issued 3 30 5 94
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 675 --
Dividends reinvested 437 305 890 1,245
Shares redeemed (163) (364) (744) (1,776)
----------- --------- ----------- ---------
Total Class B Shares 277 (29) 826 (437)
----------- --------- ----------- ---------
Class C Shares
Shares issued 12 34 18 79
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 157 --
Dividends reinvested 146 89 136 229
Shares redeemed (54) (58) (116) (549)
----------- --------- ----------- ---------
Total Class C Shares 104 65 195 (241)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 13 5 382 68
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 1,479 --
Dividends reinvested -- 98 -- 146
Shares redeemed (426) (337) (2,562) (225)
----------- --------- ----------- ---------
Total Advisor Shares (413) (234) (701) (11)
----------- --------- ----------- ---------
Change from capital transactions $ 9,508 $ (12,946) $ 31,845 $ 1,410
=========== ========= =========== =========
- ----------
(a) Unaudited
^ Represents fewer than five hundred dollars.
~ Shares merged November 16, 2007. See Note 1.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
118
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Quality Growth Dividend Growth
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 25,822 $ 31,611 $ 1,720 $ 9,365
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 73,604 9,949 51 126
Shares redeemed (64,428) (223,621) (1,881) (8,979)
----------- --------- ----------- ---------
Total Institutional Shares 34,998 (182,061) (110) 512
----------- --------- ----------- ---------
Class A Shares
Shares issued 1,657 1,575 30 248
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Shares issued in conversion from Advisor Class @ 1,716 -- 12 --
Dividends reinvested 11,334 1,865 35 73
Shares redeemed (14,805) (43,604) (546) (1,622)
----------- --------- ----------- ---------
Total Class A Shares (98) (40,164) (469) (1,301)
----------- --------- ----------- ---------
Class B Shares
Shares issued 79 125 5 59
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 1,603 206 2 3
Shares redeemed (1,178) (4,286) (72) (111)
----------- --------- ----------- ---------
Total Class B Shares 504 (3,955) (65) (49)
----------- --------- ----------- ---------
Class C Shares
Shares issued 53 75 1 19
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 329 47 2 3
Shares redeemed (338) (1,510) (57) (104)
----------- --------- ----------- ---------
Total Class C Shares 44 (1,388) (54) (82)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 179 395 -- --
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested -- 32 --^ --^
Shares redeemed (1,836) (1,054) (12) (3)
----------- --------- ----------- ---------
Total Advisor Shares (1,657) (627) (12) (3)
----------- --------- ----------- ---------
Change from capital transactions $ 33,791 $(228,195) $ (710) $ (923)
=========== ========= =========== =========
Micro Cap Value Small Cap Value
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 3,042 $ 6,468 $ 5,109 $ 18,879
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 14,288 14,685 12,680 15,351
Shares redeemed (19,554) (35,812) (27,364) (37,712)
----------- --------- ----------- ---------
Total Institutional Shares (2,224) (14,659) (9,575) (3,482)
----------- --------- ----------- ---------
Class A Shares
Shares issued 1,448 2,105 180 288
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Shares issued in conversion from Advisor Class @ 7,212 -- 608 --
Dividends reinvested 5,250 3,542 261 259
Shares redeemed (5,408) (10,249) (636) (728)
----------- --------- ----------- ---------
Total Class A Shares 8,502 (4,602) 413 (181)
----------- --------- ----------- ---------
Class B Shares
Shares issued -- 108 -- 67
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 1,659 1,323 110 113
Shares redeemed (814) (1,652) (133) (263)
----------- --------- ----------- ---------
Total Class B Shares 845 (221) (23) (83)
----------- --------- ----------- ---------
Class C Shares
Shares issued 270 977 15 76
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 800 597 69 86
Shares redeemed (637) (3,652) (126) (269)
----------- --------- ----------- ---------
Total Class C Shares 433 (2,078) (42) (107)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 140 608 6 43
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested -- 3,508 -- 120
Shares redeemed (8,560) (10,308) (842) (442)
----------- --------- ----------- ---------
Total Advisor Shares (8,420) (6,192) (836) (279)
----------- --------- ----------- ---------
Change from capital transactions $ (864) $ (27,752) $ (10,063) $ (4,132)
=========== ========= =========== =========
See notes to financial statements.
119
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Small Cap Growth Mid Cap Growth
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Share Transactions:
Institutional Shares
Shares issued 265 1,292 862 2,507
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 589 --
Dividends reinvested 3,689 2,340 3,093 4,478
Shares redeemed (3,002) (4,235) (2,561) (6,253)
----------- --------- ----------- ---------
Total Institutional Shares 952 (603) 1,983 732
----------- --------- ----------- ---------
Class A Shares
Shares issued 30 168 81 83
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 122 --
Shares issued in conversion from Advisor Class @ 27 -- 171 --
Dividends reinvested 619 324 329 446
Shares redeemed (183) (546) (403) (745)
----------- --------- ----------- ---------
Total Class A Shares 493 (54) 300 (216)
----------- --------- ----------- ---------
Class B Shares
Shares issued 1 3 1 6
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 48 --
Dividends reinvested 55 27 72 92
Shares redeemed (17) (29) (58) (119)
----------- --------- ----------- ---------
Total Class B Shares 39 1 63 (21)
----------- --------- ----------- ---------
Class C Shares
Shares issued 1 3 1 6
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 12 --
Dividends reinvested 18 8 12 18
Shares redeemed (7) (5) (10) (40)
----------- --------- ----------- ---------
Total Class C Shares 12 6 15 (16)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 1 1 26 4
Shares issued in connection with acquisition of
Technology Fund ~ -- -- 101 --
Dividends reinvested -- 8 -- 10
Shares redeemed (34) (25) (178) (14)
----------- --------- ----------- ---------
Total Advisor Shares (33) (16) (51) --^
----------- --------- ----------- ---------
Change from capital transactions 1,463 (666) 2,310 479
=========== ========= =========== =========
- ----------
(a) Unaudited
^ Represents fewer than five hundred shares.
~ Shares merged November 16, 2007. See Note 1.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
120
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Quality Growth Dividend Growth
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Share Transactions:
Institutional Shares
Shares issued 1,360 1,832 64 404
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 4,038 574 2 5
Shares redeemed (3,381) (12,832) (71) (367)
----------- --------- ----------- ---------
Total Institutional Shares 2,017 (10,426) (5) 42
----------- --------- ----------- ---------
Class A Shares
Shares issued 91 92 1 10
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Shares issued in conversion from Advisor Class @ 90 -- 1 --
Dividends reinvested 639 110 1 3
Shares redeemed (800) (2,562) (21) (67)
----------- --------- ----------- ---------
Total Class A Shares 20 (2,360) (18) (54)
----------- --------- ----------- ---------
Class B Shares
Shares issued 4 8 --^ 3
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 96 13 --^ --^
Shares redeemed (68) (264) (2) (5)
----------- --------- ----------- ---------
Total Class B Shares 32 (243) (2) (2)
----------- --------- ----------- ---------
Class C Shares
Shares issued 3 5 --^ 1
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 20 3 --^ --^
Shares redeemed (20) (96) (2) (5)
----------- --------- ----------- ---------
Total Class C Shares 3 (88) (2) (4)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 9 25 -- --
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested -- 2 -- --^
Shares redeemed (97) (63) (1) --
----------- --------- ----------- ---------
Total Advisor Shares (88) (36) (1) --
----------- --------- ----------- ---------
Change from capital transactions 1,984 (13,153) (28) (18)
=========== ========= =========== =========
Micro Cap Value Small Cap Value
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Share Transactions:
Institutional Shares
Shares issued 519 859 262 895
Shares issued in connection with acquisition of
Technology Fund ~ -- -- --
Dividends reinvested 3,654 2,154 729 753
Shares redeemed (3,703) (4,744) (1,510) (1,763)
----------- --------- ----------- ---------
Total Institutional Shares 470 (1,731) (519) (115)
----------- --------- ----------- ---------
Class A Shares
Shares issued 266 297 11 13
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Shares issued in conversion from Advisor Class @ 1,208 -- 32 --
Dividends reinvested 1,446 541 15 13
Shares redeemed (1,064) (1,410) (33) (34)
----------- --------- ----------- ---------
Total Class A Shares 1,856 (572) 25 (8)
----------- --------- ----------- ---------
Class B Shares
Shares issued -- 15 -- 3
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 502 212 6 6
Shares redeemed (177) (237) (8) (13)
----------- --------- ----------- ---------
Total Class B Shares 325 (10) (2) (4)
----------- --------- ----------- ---------
Class C Shares
Shares issued 71 144 1 4
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested 242 96 4 4
Shares redeemed (156) (481) (7) (13)
----------- --------- ----------- ---------
Total Class C Shares 157 (241) (2) (5)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 22 84 --^ 2
Shares issued in connection with acquisition of
Technology Fund ~ -- -- -- --
Dividends reinvested -- 544 -- 6
Shares redeemed (1,435) (1,457) (45) (21)
----------- --------- ----------- ---------
Total Advisor Shares (1,413) (829) (45) (13)
----------- --------- ----------- ---------
Change from capital transactions 1,395 (3,383) (543) (145)
=========== ========= =========== =========
See notes to financial statements.
121
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Disciplined
All Cap Value (a) Large Cap Value
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- ---------- ----------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 15,869 $ 40,510 $ 37,339 $ 152,582
Dividends reinvested 30,865 38,232 41,241 84,554
Shares redeemed (42,546) (85,610) (95,614) (156,187)
----------- ---------- ----------- ----------
Total Institutional Shares 4,188 (6,868) (17,034) 80,949
----------- ---------- ----------- ----------
Class A Shares
Shares issued 11,230 12,552 4,248 14,524
Shares issued in conversion from Advisor Class @ 29,310 -- 310 --
Dividends reinvested 9,449 5,675 1,652 3,225
Shares redeemed (17,023) (12,341) (9,215) (10,380)
----------- ---------- ----------- ----------
Total Class A Shares 32,966 5,886 (3,005) 7,369
----------- ---------- ----------- ----------
Class B Shares
Shares issued 119 1,731 74 685
Dividends reinvested 3,084 3,517 305 697
Shares redeemed (2,632) (2,947) (624) (1,212)
----------- ---------- ----------- ----------
Total Class B Shares 571 2,301 (245) 170
----------- ---------- ----------- ----------
Class C Shares
Shares issued 4,795 4,728 247 735
Dividends reinvested 697 564 104 246
Shares redeemed (1,565) (1,472) (434) (631)
----------- ---------- ----------- ----------
Total Class C Shares 3,927 3,820 (83) 350
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued 570 2,036 1 206
Dividends reinvested 69 5,368 1 35
Shares redeemed (30,918) (7,847) (355) (9)
----------- ---------- ----------- ----------
Total Advisor Shares (30,279) (443) (353) 232
----------- ---------- ----------- ----------
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 $ 11,373 $ 4,696 $ (20,720) $ 89,070
=========== ========== =========== ==========
- ----------
(a) Formerly the Multi Cap Value Fund.
(b) Unaudited
^ Represents fewer than five hundred dollars.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
122
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Structured
Large Cap Plus Equity Index
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- ---------- ----------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 5,068 $ 32,728 $ 27,488 $ 71,765
Dividends reinvested 1,314 766 1,744 2,967
Shares redeemed (23,198) (43,436) (32,702) (90,566)
----------- ---------- ----------- ----------
Total Institutional Shares (16,816) (9,942) (3,470) (15,834)
----------- ---------- ----------- ----------
Class A Shares
Shares issued 626 1,640 7,796 13,919
Shares issued in conversion from Advisor Class @ 475 -- 1,645 --
Dividends reinvested 112 186 558 1,019
Shares redeemed (2,881) (6,337) (11,665) (23,375)
----------- ---------- ----------- ----------
Total Class A Shares (1,668) (4,511) (1,666) (8,437)
----------- ---------- ----------- ----------
Class B Shares
Shares issued 27 147 28 250
Dividends reinvested 3 3 15 29
Shares redeemed (111) (175) (349) (1,107)
----------- ---------- ----------- ----------
Total Class B Shares (81) (25) (306) (828)
----------- ---------- ----------- ----------
Class C Shares
Shares issued 4 42 160 464
Dividends reinvested --^ --^ 8 14
Shares redeemed (32) (40) (373) (536)
----------- ---------- ----------- ----------
Total Class C Shares (28) 2 (205) (58)
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued 25 478 99 980
Dividends reinvested -- --^ 6 23
Shares redeemed (475) (16) (2,338) (799)
----------- ---------- ----------- ----------
Total Advisor Shares (450) 462 (2,233) 204
----------- ---------- ----------- ----------
Select Shares
Shares issued NA NA 1,578 2,183
Dividends reinvested NA NA 119 259
Shares redeemed NA NA (6,480) (4,586)
----------- ---------- ----------- ----------
Total Select Shares NA NA (4,783) (2,144)
----------- ---------- ----------- ----------
Preferred Shares
Shares issued NA NA 6,503 12,353
Dividends reinvested NA NA 607 1,087
Shares redeemed NA NA (9,925) (17,957)
----------- ---------- ----------- ----------
Total Preferred Shares NA NA (2,815) (4,517)
----------- ---------- ----------- ----------
Trust Shares
Shares issued NA NA 804 751
Dividends reinvested NA NA 125 225
Shares redeemed NA NA (4,667) (9,221)
----------- ---------- ----------- ----------
Total Trust Shares NA NA (3,738) (8,245)
----------- ---------- ----------- ----------
Change from capital transactions $ (19,043) $ (14,014) $ (19,216) $ (39,859)
=========== ========== =========== ==========
Balanced International Equity
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- ---------- ----------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 754 $ 3,027 $ 68,253 $ 88,896
Dividends reinvested 384 761 37,796 9,336
Shares redeemed (12,125) (19,169) (41,224) (151,154)
----------- ---------- ----------- ----------
Total Institutional Shares (10,987) (15,381) 64,825 (52,922)
----------- ---------- ----------- ----------
Class A Shares
Shares issued 186 2,143 2,090 5,001
Shares issued in conversion from Advisor Class @ 117 -- 9,646 --
Dividends reinvested 451 753 2,515 711
Shares redeemed (9,946) (16,423) (4,636) (17,514)
----------- ---------- ----------- ----------
Total Class A Shares (9,192) (13,527) 9,615 (11,802)
----------- ---------- ----------- ----------
Class B Shares
Shares issued 30 82 121 461
Dividends reinvested 91 113 150 38
Shares redeemed (675) (2,441) (202) (323)
----------- ---------- ----------- ----------
Total Class B Shares (554) (2,246) 69 176
----------- ---------- ----------- ----------
Class C Shares
Shares issued 5 244 325 124
Dividends reinvested 17 20 63 21
Shares redeemed (194) (862) (188) (588)
----------- ---------- ----------- ----------
Total Class C Shares (172) (598) 200 (443)
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued 3 11 103 354
Dividends reinvested 1 3 -- 235
Shares redeemed (128) (26) (10,038) (2,338)
----------- ---------- ----------- ----------
Total Advisor Shares (124) (12) (9,935) (1,749)
----------- ---------- ----------- ----------
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 $ (21,029) $ (31,764) $ 64,774 $ (66,740)
=========== ========== =========== ==========
See notes to financial statements.
123
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Disciplined
All Cap Value (a) Large Cap Value
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- ---------- ----------- ----------
Share Transactions:
Institutional Shares
Shares issued 634 1,565 2,669 10,139
Dividends reinvested 1,402 1,573 3,017 6,073
Shares redeemed (1,866) (3,222) (6,935) (10,590)
----------- ---------- ----------- ----------
Total Institutional Shares 170 (84) (1,249) 5,622
----------- ---------- ----------- ----------
Class A Shares
Shares issued 471 485 296 986
Shares issued in conversion from Advisor Class @ 1,247 -- 23 --
Dividends reinvested 437 237 121 232
Shares redeemed (776) (479) (650) (711)
----------- ---------- ----------- ----------
Total Class A Shares 1,379 243 (210) 507
----------- ---------- ----------- ----------
Class B Shares
Shares issued 5 69 5 46
Dividends reinvested 149 153 22 50
Shares redeemed (118) (118) (45) (81)
----------- ---------- ----------- ----------
Total Class B Shares 36 104 (18) 15
----------- ---------- ----------- ----------
Class C Shares
Shares issued 212 189 18 51
Dividends reinvested 34 24 8 18
Shares redeemed (73) (59) (31) (43)
----------- ---------- ----------- ----------
Total Class C Shares 173 154 (5) 26
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued 22 79 -- 14
Dividends reinvested 3 225 -- 3
Shares redeemed (1,319) (311) (26) (1)
----------- ---------- ----------- ----------
Total Advisor Shares (1,294) (7) (26) 16
----------- ---------- ----------- ----------
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 464 410 (1,508) 6,186
=========== ========== =========== ==========
- ----------
(a) Formerly the Multi Cap Value Fund.
(b) Unaudited
^ Represents fewer than five hundred shares.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
124
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Structured
Large Cap Plus Equity Index
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- ---------- ----------- ----------
Share Transactions:
Institutional Shares
Shares issued 304 2,107 985 2,657
Dividends reinvested 76 46 62 110
Shares redeemed (1,350) (2,509) (1,180) (3,367)
----------- ---------- ----------- ----------
Total Institutional Shares (970) (356) (133) (600)
----------- ---------- ----------- ----------
Class A Shares
Shares issued 38 99 281 511
Shares issued in conversion from Advisor Class @ 29 -- 62 --
Dividends reinvested 7 11 20 38
Shares redeemed (172) (374) (422) (862)
----------- ---------- ----------- ----------
Total Class A Shares (98) (264) (59) (313)
----------- ---------- ----------- ----------
Class B Shares
Shares issued 2 9 1 10
Dividends reinvested --^ -- 1 1
Shares redeemed (7) (10) (13) (42)
----------- ---------- ----------- ----------
Total Class B Shares (5) (1) (11) (31)
----------- ---------- ----------- ----------
Class C Shares
Shares issued --^ 2 6 17
Dividends reinvested --^ -- -- 1
Shares redeemed (2) (2) (14) (20)
----------- ---------- ----------- ----------
Total Class C Shares (2) -- (8) (2)
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued 1 28 4 35
Dividends reinvested -- -- -- 1
Shares redeemed (29) (1) (86) (29)
----------- ---------- ----------- ----------
Total Advisor Shares (28) 27 (82) 7
----------- ---------- ----------- ----------
Select Shares
Shares issued NA NA 57 82
Dividends reinvested NA NA 4 9
Shares redeemed NA NA (228) (169)
----------- ---------- ----------- ----------
Total Select Shares NA NA (167) (78)
----------- ---------- ----------- ----------
Preferred Shares
Shares issued NA NA 232 454
Dividends reinvested NA NA 22 40
Shares redeemed NA NA (359) (664)
----------- ---------- ----------- ----------
Total Preferred Shares NA NA (105) (170)
----------- ---------- ----------- ----------
Trust Shares
Shares issued NA NA 29 28
Dividends reinvested NA NA 4 8
Shares redeemed NA NA (165) (344)
----------- ---------- ----------- ----------
Total Trust Shares NA NA (132) (308)
----------- ---------- ----------- ----------
Change from capital transactions (1,103) (594) (697) (1,495)
=========== ========== =========== ==========
Balanced International Equity
------------------------ ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- ---------- ----------- ----------
Share Transactions:
Institutional Shares
Shares issued 55 232 4,633 6,856
Dividends reinvested 27 59 2,466 19
Shares redeemed (861) (1,456) (2,676) (10,577)
----------- ---------- ----------- ----------
Total Institutional Shares (779) (1,165) 4,423 (3,702)
----------- ---------- ----------- ----------
Class A Shares
Shares issued 13 164 132 351
Shares issued in conversion from Advisor Class @ 9 -- 607 --
Dividends reinvested 32 58 166 52
Shares redeemed (710) (1,256) (301) (1,176)
----------- ---------- ----------- ----------
Total Class A Shares (656) (1,034) 604 (773)
----------- ---------- ----------- ----------
Class B Shares
Shares issued 2 6 8 33
Dividends reinvested 7 9 10 3
Shares redeemed (49) (189) (14) (23)
----------- ---------- ----------- ----------
Total Class B Shares (40) (174) 4 13
----------- ---------- ----------- ----------
Class C Shares
Shares issued --^ 19 23 9
Dividends reinvested 1 1 4 1
Shares redeemed (14) (67) (13) (44)
----------- ---------- ----------- ----------
Total Class C Shares (13) (47) 14 (34)
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued --^ 1 6 25
Dividends reinvested --^ --^ -- 17
Shares redeemed (9) (2) (634) (165)
----------- ---------- ----------- ----------
Total Advisor Shares (9) (1) (628) (123)
----------- ---------- ----------- ----------
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 (1,497) (2,421) 4,417 (4,619)
=========== ========== =========== ==========
See notes to financial statements.
125
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel
Strategic Income Aggressive(SM)
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 4,935 $ 25,799 $ 17,438 $ 34,928
Dividends reinvested 3,655 1,929 11,973 3,801
Shares redeemed (24,283) (17,153) (21,825) (35,137)
----------- --------- ----------- ---------
Total Institutional Shares (15,693) 10,575 7,586 3,592
----------- --------- ----------- ---------
Class A Shares
Shares issued 643 1,442 4,295 10,154
Shares issued in conversion from Advisor Class @ 15,916 -- 1,026 --
Dividends reinvested 757 189 5,129 1,601
Shares redeemed (2,414) (1,095) (6,784) (11,631)
----------- --------- ----------- ---------
Total Class A Shares 14,902 536 3,666 124
----------- --------- ----------- ---------
Class B Shares
Shares issued 2 404 137 1,343
Dividends reinvested 40 51 1,438 466
Shares redeemed (267) (500) (1,917) (2,440)
----------- --------- ----------- ---------
Total Class B Shares (225) (45) (342) (631)
----------- --------- ----------- ---------
Class C Shares
Shares issued 410 516 191 679
Dividends reinvested 602 712 226 69
Shares redeemed (3,042) (5,511) (321) (734)
----------- --------- ----------- ---------
Total Class C Shares (2,030) (4,283) 96 14
----------- --------- ----------- ---------
Advisor Shares @
Shares issued 114 1,816 62 354
Dividends reinvested 156 905 -- 21
Shares redeemed (16,774) (6,402) (1,232) (105)
----------- --------- ----------- ---------
Total Advisor Shares (16,504) (3,681) (1,170) 270
----------- --------- ----------- ---------
Change from capital transactions $ (19,550) $ 3,102 $ 9,836 $ 3,369
=========== ========= =========== =========
- ----------
(a) Unaudited
^ Represents fewer than five hundred dollars.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
126
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel LifeModel
Moderately Aggressive(SM) Moderate(SM)
------------------------- ------------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- ---------- ----------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 17,557 $ 40,366 $ 38,223 $ 59,250
Dividends reinvested 14,478 5,983 30,618 18,093
Shares redeemed (21,882) (49,433) (53,541) (104,703)
----------- ---------- ----------- ----------
Total Institutional Shares 10,153 (3,084) 15,300 (27,360)
----------- ---------- ----------- ----------
Class A Shares
Shares issued 6,299 16,757 9,451 11,504
Shares issued in conversion from Advisor Class @ 1,727 -- 491 --
Dividends reinvested 11,137 4,649 7,000 4,119
Shares redeemed (14,536) (35,182) (14,895) (30,724)
----------- ---------- ----------- ----------
Total Class A Shares 4,627 (13,776) 2,047 (15,101)
----------- ---------- ----------- ----------
Class B Shares
Shares issued 510 4,627 543 2,795
Dividends reinvested 4,596 1,634 2,881 1,506
Shares redeemed (5,162) (8,599) (3,513) (7,684)
----------- ---------- ----------- ----------
Total Class B Shares (56) (2,338) (89) (3,383)
----------- ---------- ----------- ----------
Class C Shares
Shares issued 347 1,687 170 833
Dividends reinvested 589 222 381 210
Shares redeemed (1,617) (1,985) (966) (1,837)
----------- ---------- ----------- ----------
Total Class C Shares (681) (76) (415) (794)
----------- ---------- ----------- ----------
Advisor Shares @
Shares issued 87 681 78 176
Dividends reinvested 4 51 2 18
Shares redeemed (2,052) (302) (504) (217)
----------- ---------- ----------- ----------
Total Advisor Shares (1,961) 430 (424) (23)
----------- ---------- ----------- ----------
Change from capital transactions $ 12,082 $ (18,844) $ 16,419 $ (46,661)
=========== ========== =========== ==========
LifeModel LifeModel
Moderately Conservative(SM) Conservative(SM)
--------------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- ---------- ----------- ----------
Capital Transactions:
Institutional Shares
Shares issued $ 11,344 $ 12,948 $ 11,276 $ 8,972
Dividends reinvested 3,469 2,372 1,422 1,412
Shares redeemed (11,152) (18,924) (8,125) (10,839)
----------- ---------- ---------- ----------
Total Institutional Shares 3,661 (3,604) 4,573 (455)
----------- ---------- ---------- ----------
Class A Shares
Shares issued 1,327 3,505 1,812 1,625
Shares issued in conversion from Advisor Class @ 68 -- 47 --
Dividends reinvested 2,552 1,891 710 821
Shares redeemed (4,708) (9,112) (2,137) (3,922)
----------- ---------- ---------- ----------
Total Class A Shares (761) (3,716) 432 (1,476)
----------- ---------- ---------- ----------
Class B Shares
Shares issued 165 730 103 595
Dividends reinvested 1,240 840 366 422
Shares redeemed (2,099) (4,255) (675) (2,251)
----------- ---------- ---------- ----------
Total Class B Shares (694) (2,685) (206) (1,234)
----------- ---------- ---------- ----------
Class C Shares
Shares issued 231 594 153 401
Dividends reinvested 171 121 105 137
Shares redeemed (346) (1,179) (710) (1,359)
----------- ---------- ---------- ----------
Total Class C Shares 56 (464) (452) (821)
----------- ---------- ---------- ----------
Advisor Shares @
Shares issued -- 1 -- 2
Dividends reinvested -- 3 --^ --
Shares redeemed (68) (1) (47) (2)^
----------- ---------- ---------- ----------
Total Advisor Shares (68) 3 (47) --
----------- ---------- ---------- ----------
Change from capital transactions $ 2,194 $ (10,466) $ 4,300 $ (3,986)
=========== ========== ========== ==========
See notes to financial statements.
127
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel
Strategic Income Aggressive(SM)
---------------------- ----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
----------- -------- ----------- --------
Share Transactions:
Institutional Shares
Shares issued 452 2,238 1,068 2,180
Dividends reinvested 344 167 748 243
Shares redeemed (2,252) (1,489) (1,348) (2,169)
----------- -------- ----------- --------
Total Institutional Shares (1,456) 916 468 254
----------- -------- ----------- --------
Class A Shares
Shares issued 59 124 265 634
Shares issued in conversion from Advisor Class @ 1,483 -- 63 --
Dividends reinvested 72 17 322 102
Shares redeemed (226) (95) (413) (727)
----------- -------- ----------- --------
Total Class A Shares 1,388 46 237 9
----------- -------- ----------- --------
Class B Shares
Shares issued -- 35 9 87
Dividends reinvested 4 5 92 31
Shares redeemed (24) (44) (118) (155)
----------- -------- ----------- --------
Total Class B Shares (20) (4) (17) (37)
----------- -------- ----------- --------
Class C Shares
Shares issued 38 45 12 44
Dividends reinvested 57 62 15 4
Shares redeemed (279) (483) (20) (48)
----------- -------- ----------- --------
Total Class C Shares (184) (376) 7 --^
----------- -------- ----------- --------
Advisor Shares @
Shares issued 10 158 4 22
Dividends reinvested 14 79 -- 1
Shares redeemed (1,561) (557) (75) (6)
----------- -------- ----------- --------
Total Advisor Shares (1,537) (320) (71) 17
----------- -------- ----------- --------
Change from capital transactions (1,809) 262 624 243
=========== ======== =========== ========
- ----------
(a) Unaudited
^ Represents fewer than five hundred shares.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
128
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
LifeModel LifeModel
Moderately Aggressive(SM) Moderate(SM)
------------------------- ----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
------------ ---------- ----------- --------
Share Transactions:
Institutional Shares
Shares issued 1,164 2,688 2,879 4,526
Dividends reinvested 978 401 2,382 1,387
Shares redeemed (1,441) (3,267) (4,059) (7,959)
------------ ---------- ----------- --------
Total Institutional Shares 701 (178) 1,202 (2,046)
------------ ---------- ----------- --------
Class A Shares
Shares issued 415 1,115 711 878
Shares issued in conversion from Advisor Class @ 113 -- 37 --
Dividends reinvested 754 313 545 316
Shares redeemed (964) (2,347) (1,145) (2,342)
------------ ---------- ----------- --------
Total Class A Shares 318 (919) 148 (1,148)
------------ ---------- ----------- --------
Class B Shares
Shares issued 33 313 42 215
Dividends reinvested 313 111 226 116
Shares redeemed (346) (573) (268) (588)
------------ ---------- ----------- --------
Total Class B Shares -- (149) -- (257)
------------ ---------- ----------- --------
Class C Shares
Shares issued 23 115 13 64
Dividends reinvested 40 15 30 16
Shares redeemed (108) (133) (75) (142)
------------ ---------- ----------- --------
Total Class C Shares (45) (3) (32) (62)
------------ ---------- ----------- --------
Advisor Shares @
Shares issued 6 46 6 14
Dividends reinvested --^ 4 -- 1
Shares redeemed (133) (20) (38) (17)
------------ ---------- ----------- --------
Total Advisor Shares (127) 30 (32) (2)
------------ ---------- ----------- --------
Change from capital transactions 847 (1,219) 1,286 (3,515)
============ ========== =========== ========
LifeModel LifeModel
Moderately Conservative(SM) Conservative(SM)
-------------------------- ----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (a) 2007 2008 (a) 2007
------------- ---------- ----------- --------
Share Transactions:
Institutional Shares
Shares issued 969 1,092 1,033 816
Dividends reinvested 302 202 132 129
Shares redeemed (952) (1,590) (743) (986)
------------- ---------- ----------- --------
Total Institutional Shares 319 (296) 422 (41)
------------- ---------- ----------- --------
Class A Shares
Shares issued 116 296 169 148
Shares issued in conversion from Advisor Class @ 6 -- 4 --
Dividends reinvested 223 161 66 75
Shares redeemed (403) (770) (196) (357)
------------- ---------- ----------- --------
Total Class A Shares (58) (313) 43 (134)
------------- ---------- ----------- --------
Class B Shares
Shares issued 14 62 10 54
Dividends reinvested 109 72 34 38
Shares redeemed (181) (361) (62) (205)
------------- ---------- ----------- --------
Total Class B Shares (58) (227) (18) (113)
------------- ---------- ----------- --------
Class C Shares
Shares issued 19 51 14 37
Dividends reinvested 15 11 10 12
Shares redeemed (30) (100) (65) (125)
------------- ---------- ----------- --------
Total Class C Shares 4 (38) (41) (76)
------------- ---------- ----------- --------
Advisor Shares @
Shares issued -- --^ -- --^
Dividends reinvested --^ 1 --^ --^
Shares redeemed (6) --^ (4) --^
------------- ---------- ----------- --------
Total Advisor Shares (6) 1 (4) --^
------------- ---------- ----------- --------
Change from capital transactions 201 (873) 402 (364)
============= ========== =========== ========
See notes to financial statements.
129
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
High Yield Bond Total Return Bond (a) Short Term Bond
----------------------- ----------------------- -----------------------
Six Months Year Six Months Year Six Months Year
ended ended ended ended ended ended
January 31, July 31, January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 7,521 $ 23,931 $ 21,481 $ 70,897 $ 14,754 $ 76,453
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 432,863 -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- 22,356 -- -- --
Dividends reinvested 1,496 909 5,827 3,480 3,063 2,208
Shares redeemed (23,905) (21,121) (54,257) (96,717) (25,832) (71,370)
----------- --------- ----------- --------- ----------- ---------
Total Institutional Shares (14,888) 3,719 428,270 (22,340) (8,015) 7,291
----------- --------- ----------- --------- ----------- ---------
Class A Shares
Shares issued 1,701 43 3,811 564 819 1,052
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 12,706 -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- 2,629 -- -- --
Shares issued in conversion of
Advisor Class @ 14 -- 339 -- -- --
Dividends reinvested 5 10 305 415 164 377
Shares redeemed (1,681) (102) (2,578) (4,448) (1,646) (4,172)
----------- --------- ----------- --------- ----------- ---------
Total Class A Shares 39 (49) 17,212 (3,469) (663) (2,743)
----------- --------- ----------- --------- ----------- ---------
Class B Shares
Shares issued -- 64 261 21 NA NA
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 1,751 -- NA NA
Dividends reinvested 1 2 45 76 NA NA
Shares redeemed (72) --^ (459) (605) NA NA
----------- --------- ----------- --------- ----------- ---------
Total Class B Shares (71) 66 1,598 (508) NA NA
----------- --------- ----------- --------- ----------- ---------
Class C Shares
Shares issued --^ 76 24 16 78 13
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 450 -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- 1,154 -- -- --
Dividends reinvested 1 2 11 9 1 5
Shares redeemed --^ --^ (126) (116) (66) (63)
----------- --------- ----------- --------- ----------- ---------
Total Class C Shares 1 78 1,513 (91) 13 (45)
----------- --------- ----------- --------- ----------- ---------
Advisor Shares @
Shares issued -- 5 7 40 -- --^
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 101 -- -- --
Dividends reinvested --^ --^ 3 8 -- --^
Shares redeemed (14) --^ (346) (77) -- (3)
----------- --------- ----------- --------- ----------- ---------
Total Advisor Shares (14) 5 (235) (29) -- (3)
----------- --------- ----------- --------- ----------- ---------
Change from capital transactions $ (14,933) $ 3,819 $ 448,358 $ (26,437) $ (8,665) $ 4,500
=========== ========= =========== ========= =========== =========
- ----------
(a) Formerly the Bond Fund
(b) Unaudited
^ Represents fewer than five hundred dollars.
~ Shares merged November 16, 2007. See Note 1.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
130
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Intermediate
Municipal Bond Municipal Bond
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 4,077 $ 14,848 $ 4,424 $ 10,952
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested 274 543 409 573
Shares redeemed (8,542) (10,305) (13,915) (26,522)
----------- --------- ----------- ---------
Total Institutional Shares (4,191) 5,086 (9,082) (14,997)
----------- --------- ----------- ---------
Class A Shares
Shares issued 136 8 114 5
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Shares issued in conversion of
Advisor Class @ 173 -- -- --
Dividends reinvested 19 42 30 64
Shares redeemed (301) (185) (112) (583)
----------- --------- ----------- ---------
Total Class A Shares 27 (135) 32 (514)
----------- --------- ----------- ---------
Class B Shares
Shares issued -- 2 -- 10
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested 11 27 7 4
Shares redeemed (176) (172) -- (100)
----------- --------- ----------- ---------
Total Class B Shares (165) (143) 7 (86)
----------- --------- ----------- ---------
Class C Shares
Shares issued -- 23 --^ 21
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested --^ 1 2 2
Shares redeemed (14) (69) (6) (10)
----------- --------- ----------- ---------
Total Class C Shares (14) (45) (4) 13
----------- --------- ----------- ---------
Advisor Shares @
Shares issued -- 2 -- --
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested 1 2 -- --^
Shares redeemed (173) (4) -- (2)
----------- --------- ----------- ---------
Total Advisor Shares (172) -- -- (2)
----------- --------- ----------- ---------
Change from capital transactions $ (4,515) $ 4,763 $ (9,047) $ (15,586)
=========== ========= =========== =========
Ohio Michigan
Municipal Bond Municipal Bond
----------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- --------- ----------- ---------
Capital Transactions:
Institutional Shares
Shares issued $ 4,462 $ 7,512 $ 1,596 $ 4,477
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested 345 137 9 24
Shares redeemed (7,097) (11,391) (3,104) (11,352)
----------- --------- ----------- ---------
Total Institutional Shares (2,290) (3,742) (1,499) (6,851)
----------- --------- ----------- ---------
Class A Shares
Shares issued 6 429 11 3
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Shares issued in conversion of
Advisor Class @ -- -- -- --
Dividends reinvested 81 178 37 94
Shares redeemed (2,075) (8,148) (116) (319)
----------- --------- ----------- ---------
Total Class A Shares (1,988) (7,541) (68) (222)
----------- --------- ----------- ---------
Class B Shares
Shares issued -- 2 -- 39
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested 30 61 3 7
Shares redeemed (367) (800) (15) (85)
----------- --------- ----------- ---------
Total Class B Shares (337) (737) (12) (39)
----------- --------- ----------- ---------
Class C Shares
Shares issued --^ -- --^ --^
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested 10 20 1 3
Shares redeemed (104) (502) (53) (54)
----------- --------- ----------- ---------
Total Class C Shares (94) (482) (52) (51)
----------- --------- ----------- ---------
Advisor Shares @
Shares issued -- -- -- --^
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested -- --^ -- --^
Shares redeemed -- (3) -- (3)
----------- --------- ----------- ---------
Total Advisor Shares -- (3) -- (3)
----------- --------- ----------- ---------
Change from capital transactions $ (4,709) $ (12,505) $ (1,631) $ (7,166)
=========== ========= =========== =========
See notes to financial statements.
131
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
High Yield Bond Total Return Bond (a) Short Term Bond
---------------------- ---------------------- ----------------------
Six Months Year Six Months Year Six Months Year
ended ended ended ended ended ended
January 31, July 31, January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007 2008 (b) 2007
----------- -------- ----------- -------- ----------- --------
Share Transactions:
Institutional Shares
Shares issued 776 2,403 2,199 7,257 1,572 8,207
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 44,475 -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- 2,297 -- -- --
Dividends reinvested 155 91 598 357 327 238
Shares redeemed (2,483) (2,148) (5,568) (9,873) (2,754) (7,679)
----------- -------- ----------- -------- ----------- --------
Total Institutional Shares (1,552) 346 44,001 (2,259) (855) 766
----------- -------- ----------- -------- ----------- --------
Class A Shares
Shares issued 171 4 392 58 87 113
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 1,306 -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- 270 -- -- --
Shares issued in conversion of
Advisor Class @ 1 -- 35 -- -- --
Dividends reinvested 1 1 31 42 18 40
Shares redeemed (172) (10) (264) (454) (175) (449)
----------- -------- ----------- -------- ----------- --------
Total Class A Shares 1 (5) 1,770 (354) (70) (296)
----------- -------- ----------- -------- ----------- --------
Class B Shares
Shares issued -- 6 26 2 NA NA
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 180 -- NA NA
Dividends reinvested --^ --^ 5 8 NA NA
Shares redeemed (7) -- (47) (62) NA NA
----------- -------- ----------- -------- ----------- --------
Total Class B Shares (7) 6 164 (52) NA NA
----------- -------- ----------- -------- ----------- --------
Class C Shares
Shares issued --^ 7 2 1 8 1
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 46 -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- 119 -- -- --
Dividends reinvested --^ --^ 1 1 --^ 1
Shares redeemed --^ --^ (13) (12) (7) (7)
----------- -------- ----------- -------- ----------- --------
Total Class C Shares -- 7 155 (10) 1 (5)
----------- -------- ----------- -------- ----------- --------
Advisor Shares @
Shares issued -- 1 1 4 -- --
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- 10 -- -- --
Dividends reinvested --^ --^ -- 1 -- --^
Shares redeemed (2) -- (35) (8) -- --^
----------- -------- ----------- -------- ----------- --------
Total Advisor Shares (2) 1 (24) (3) -- --^
----------- -------- ----------- -------- ----------- --------
Change from capital transactions (1,560) 355 46,066 (2,678) (924) 465
=========== ======== =========== ======== =========== ========
- ----------
(a) Formerly the Bond Fund
(b) Unaudited
^ Represents fewer than five hundred shares.
~ Shares merged November 16, 2007. See Note 1.
@ Advisor Shares merged into Class A Shares on November 26, 2007. See
Note 1.
See notes to financial statements.
132
Fifth Third Funds
Statements of Changes in Net Assets, continued -- Fund Share Transactions
(Amounts in thousands)
- --------------------------------------------------------------------------------
Intermediate
Municipal Bond Municipal Bond
---------------------- ----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- -------- ----------- --------
Share Transactions:
Institutional Shares
Shares issued 436 1,578 441 1,094
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested 30 57 41 56
Shares redeemed (912) (1,089) (1,388) (2,634)
----------- -------- ----------- --------
Total Institutional Shares (446) 546 (906) (1,484)
----------- -------- ----------- --------
Class A Shares
Shares issued 15 1 11 1
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Shares issued in conversion of
Advisor Class @ 18 -- -- --
Dividends reinvested 2 4 3 6
Shares redeemed (32) (19) (11) (58)
----------- -------- ----------- --------
Total Class A Shares 3 (14) 3 (51)
----------- -------- ----------- --------
Class B Shares
Shares issued -- -- -- --
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested 1 3 1 1
Shares redeemed (19) (18) -- (10)
----------- -------- ----------- --------
Total Class B Shares (18) (15) 1 (9)
----------- -------- ----------- --------
Class C Shares
Shares issued -- 3 --^ 2
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested --^ --^ --^ --^
Shares redeemed (1) (7) (1) (1)
----------- -------- ----------- --------
Total Class C Shares (1) (4) (1) 1
----------- -------- ----------- --------
Advisor Shares @
Shares issued -- --^ -- --
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested --^ --^ -- --^
Shares redeemed (19) --^ -- --^
----------- -------- ----------- --------
Total Advisor Shares (19) --^ -- --^
----------- -------- ----------- --------
Change from capital transactions (481) 513 (903) (1,543)
=========== ======== =========== ========
Ohio Michigan
Municipal Bond Municipal Bond
---------------------- ----------------------
Six Months Year Six Months Year
ended ended ended ended
January 31, July 31, January 31, July 31,
2008 (b) 2007 2008 (b) 2007
----------- -------- ----------- --------
Share Transactions:
Institutional Shares
Shares issued 444 747 160 451
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested 34 13 1 2
Shares redeemed (708) (1,131) (312) (1,142)
----------- -------- ----------- --------
Total Institutional Shares (230) (371) (151) (689)
----------- -------- ----------- --------
Class A Shares
Shares issued 1 42 1 --^
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Shares issued in conversion of
Advisor Class @ -- -- -- --
Dividends reinvested 8 18 4 10
Shares redeemed (206) (814) (12) (32)
----------- -------- ----------- --------
Total Class A Shares (197) (754) (7) (22)
----------- -------- ----------- --------
Class B Shares
Shares issued -- -- -- 4
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested 3 6 1 1
Shares redeemed (38) (81) (2) (9)
----------- -------- ----------- --------
Total Class B Shares (35) (75) (1) (4)
----------- -------- ----------- --------
Class C Shares
Shares issued --^ -- --^ --^
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Shares issued in connection with
acquisition of Government
Bond Fund ~ -- -- -- --
Dividends reinvested 1 2 --^ --^
Shares redeemed (10) (50) (5) (5)
----------- -------- ----------- --------
Total Class C Shares (9) (48) (5) (5)
----------- -------- ----------- --------
Advisor Shares @
Shares issued -- -- -- --
Shares issued in connection with
acquisition of Intermediate
Bond Fund ~ -- -- -- --
Dividends reinvested -- --^ -- --^
Shares redeemed -- --^ -- --^
----------- -------- ----------- --------
Total Advisor Shares -- -- -- --
----------- -------- ----------- --------
Change from capital transactions (471) (1,248) (164) (720)
=========== ======== =========== ========
See notes to financial statements.
133
Fifth Third Funds
Statement of Cash Flows
For the six months ended January 31, 2008 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
Structured
Large Cap
Plus
-----------
Increase (Decrease) in Cash:
Cash flows from operating activities:
Net decrease in net assets from operations $ (10,240)
Adjustments to reconcile net decrease in net assets from
operations to net cash used in operating activities:
Purchases of long-term securities (225,406)
Proceeds from sales of long-term securities 238,871
Sale of short-term investment securities, net 3,135
Increase in proceeds from securities sold short 1,612
Decrease in dividends receivable 9
Decrease in receivable for securities sold 1,844
Increase in receivable from Advisor (252)
Increase in other assets (15)
Proceeds from futures contracts transactions (143)
Increase in distribution and administration services fee (1)
Decrease dividends on securities sold short 214
Increase in other liabilities 34
Unrealized depreciation on investments 8,404
Net realized loss on investments 2,549
----------
Net cash received from operating activities 20,615
----------
Cash flows from financing activities:
Cash distributions paid* (137)
Net proceeds from capital share activity (20,478)
----------
Net cash used for financing activities (20,615)
----------
Net Increase (Decrease) in Cash 0
Cash and Foreign Currency:
Beginning of year 0
----------
End of year $ 0
==========
- ----------
* Noncash financing activities not included herein consist of reinvestment
of dividends of $1,429.
See notes to financial statements.
134
This page intentionally left blank.
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
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Institutional Shares
Six months ended 1/31/08 + $13.42 (0.04)+++ (0.71) (0.75) -- (4.50)
Year ended 7/31/07 $14.10 (0.08)+++ 2.64 2.56 -- (3.24)
Year ended 7/31/06 $15.58 (0.11)+++ 0.50 0.39 -- (1.87)
Year ended 7/31/05 $15.48 (0.10)+++ 3.07 2.97 -- (2.87)
Year ended 7/31/04 $15.90 (0.12)+++ 1.43 1.31 -- (1.73)
Year ended 7/31/03 $13.70 (0.03) 2.23 2.20 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Class A Shares
Six months ended 1/31/08 + $12.84 (0.05)+++ (0.65) (0.70) -- (4.50)
Year ended 7/31/07 $13.65 (0.11)+++ 2.54 2.43 -- (3.24)
Year ended 7/31/06 $15.17 (0.14)+++ 0.49 0.35 -- (1.87)
Year ended 7/31/05 $15.18 (0.14)+++ 3.00 2.86 -- (2.87)
Year ended 7/31/04 $15.65 (0.17)+++ 1.43 1.26 -- (1.73)
Year ended 7/31/03 $13.52 (0.06) 2.19 2.13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Class B Shares
Six months ended 1/31/08 + $12.21 (0.08)+++ (0.60) (0.68) -- (4.50)
Year ended 7/31/07 $13.21 (0.20)+++ 2.44 2.24 -- (3.24)
Year ended 7/31/06 $14.85 (0.25)+++ 0.48 0.23 -- (1.87)
Year ended 7/31/05 $15.02 (0.24)+++ 2.94 2.70 -- (2.87)
Year ended 7/31/04 $15.61 (0.29)+++ 1.43 1.14 -- (1.73)
Year ended 7/31/03 $13.59 (0.14) 2.16 2.02 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Class C Shares
Six months ended 1/31/08 + $12.23 (0.08)+++ (0.61) (0.69) -- (4.50)
Year ended 7/31/07 $13.23 (0.20)+++ 2.44 2.24 -- (3.24)
Year ended 7/31/06 $14.86 (0.25)+++ 0.49 0.24 -- (1.87)
Year ended 7/31/05 $15.03 (0.24)+++ 2.94 2.70 -- (2.87)
Year ended 7/31/04 $15.62 (0.29)+++ 1.43 1.14 -- (1.73)
Year ended 7/31/03 $13.59 (0.14) 2.17 2.03 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Institutional Shares
Six months ended 1/31/08 + $15.70 (0.03)+++ (0.82) (0.85) -- (2.19)
Year ended 7/31/07 $16.55 (0.07)+++@ 2.72 2.65 -- (3.50)
Year ended 7/31/06 $16.03 (0.04)+++ 0.77 0.73 (0.02) (0.19)
Year ended 7/31/05 $12.96 --^ 3.07 3.07 -- --
Year ended 7/31/04 $12.02 (0.09) 1.03 0.94 -- --
Year ended 7/31/03 $10.24 (0.07)+++ 1.85 1.78 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Class A Shares
Six months ended 1/31/08 + $15.20 (0.05)+++ (0.77) (0.82) -- (2.19)
Year ended 7/31/07 $16.17 (0.11)+++@ 2.64 2.53 -- (3.50)
Year ended 7/31/06 $15.69 (0.08)+++ 0.76 0.68 (0.01) (0.19)
Year ended 7/31/05 $12.72 (0.05) 3.02 2.97 -- --
Year ended 7/31/04 $11.82 (0.12) 1.02 0.90 -- --
Year ended 7/31/03 $10.11 (0.09)+++ 1.80 1.71 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Class B Shares
Six months ended 1/31/08 + $14.31 (0.09)+++ (0.68) (0.77) -- (2.19)
Year ended 7/31/07 $15.50 (0.21)+++@ 2.52 2.31 -- (3.50)
Year ended 7/31/06 $15.16 (0.20)+++ 0.73 0.53 -- (0.19)
Year ended 7/31/05 $12.38 (0.15) 2.93 2.78 -- --
Year ended 7/31/04 $11.59 (0.21) 1.00 0.79 -- --
Year ended 7/31/03 $ 9.98 (0.17)+++ 1.78 1.61 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Class C Shares
Six months ended 1/31/08 + $13.65 (0.09)+++ (0.74) (0.83) -- (2.19)
Year ended 7/31/07 $14.94 (0.20)+++@ 2.41 2.21 -- (3.50)
Year ended 7/31/06 $14.61 (0.19)+++ 0.71 0.52 -- (0.19)
Year ended 7/31/05 $11.94 (0.16) 2.83 2.67 -- --
Year ended 7/31/04 $11.17 (0.21) 0.98 0.77 -- --
Year ended 7/31/03 $ 9.63 (0.16)+++ 1.70 1.54 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
136
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
-----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Institutional Shares
Six months ended 1/31/08 + (4.50) $ 8.17 (9.28)%* $ 76,372 1.10%** 1.02%** (0.62)%** 49%
Year ended 7/31/07 (3.24) $13.42 20.45% $112,591 1.06% 1.01% (0.59)% 90%
Year ended 7/31/06 (1.87) $14.10 2.71% $126,809 1.03% 1.02% (0.75)% 67%
Year ended 7/31/05 (2.87) $15.58 20.81% $213,892 1.01% 1.01% (0.68)% 65%
Year ended 7/31/04 (1.73) $15.48 7.31% $223,439 1.00% 1.00% (0.72)% 95%
Year ended 7/31/03 -- $15.90 16.06% $391,934 0.98% 0.93% (0.16)% 63%
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Class A Shares
Six months ended 1/31/08 + (4.50) $ 7.64 (9.29)%* $ 13,293 1.35%** 1.27%** (0.87)%** 49%
Year ended 7/31/07 (3.24) $12.84 20.11% $ 16,036 1.30% 1.26% (0.84)% 90%
Year ended 7/31/06 (1.87) $13.65 2.50% $ 17,783 1.28% 1.27% (0.99)% 67%
Year ended 7/31/05 (2.87) $15.17 20.45% $ 22,714 1.26% 1.26% (0.93)% 65%
Year ended 7/31/04 (1.73) $15.18 7.16% $ 25,921 1.25% 1.25% (0.99)% 95%
Year ended 7/31/03 -- $15.65 15.75% $ 16,471 1.23% 1.19% (0.42)% 63%
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Class B Shares
Six months ended 1/31/08 + (4.50) $ 7.03 (9.74)%* $ 1,031 2.09%** 2.01%** (1.61)%** 49%
Year ended 7/31/07 (3.24) $12.21 19.31% $ 1,318 2.06% 2.01% (1.59)% 90%
Year ended 7/31/06 (1.87) $13.21 1.69% $ 1,414 2.03% 2.02% (1.74)% 67%
Year ended 7/31/05 (2.87) $14.85 19.51% $ 1,805 2.01% 2.01% (1.68)% 65%
Year ended 7/31/04 (1.73) $15.02 6.30% $ 1,784 2.00% 2.00% (1.74)% 95%
Year ended 7/31/03 -- $15.61 14.86%* $ 1,407 1.98%** 1.94%** (1.17)%** 63%
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Class C Shares
Six months ended 1/31/08 + (4.50) $ 7.04 (9.72)%* $ 338 2.09%** 2.01%** (1.61)%** 49%
Year ended 7/31/07 (3.24) $12.23 19.18% $ 426 2.05% 2.01% (1.60)% 90%
Year ended 7/31/06 (1.87) $13.23 1.75% $ 384 2.03% 2.02% (1.75)% 67%
Year ended 7/31/05 (2.87) $14.86 19.57% $ 618 2.01% 2.01% (1.68)% 65%
Year ended 7/31/04 (1.73) $15.03 6.29% $ 810 2.00% 2.00% (1.74)% 95%
Year ended 7/31/03 -- $15.62 14.94%* $ 436 1.98%** 1.93%** (1.16)%** 63%
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Institutional Shares
Six months ended 1/31/08 + (2.19) $12.66 (6.51)%* $277,747 1.11%** 1.09%** (0.39)%** 49%
Year ended 7/31/07 (3.50) $15.70 17.32%@ $313,124 1.09% 1.09% (0.48)% 55%
Year ended 7/31/06 (0.21) $16.55 4.56% $318,133 1.08% 1.08% (0.24)% 69%
Year ended 7/31/05 -- $16.03 23.69% $392,929 1.09% 1.09% (0.03)% 54%
Year ended 7/31/04 -- $12.96 7.82% $335,815 1.09% 1.09% (0.68)% 83%
Year ended 7/31/03 -- $12.02 17.38% $335,285 1.10% 1.10% (0.65)% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Class A Shares
Six months ended 1/31/08 + (2.19) $12.19 (6.53)%* $ 26,999 1.36%** 1.35%** (0.63)%** 49%
Year ended 7/31/07 (3.50) $15.20 16.93%@ $ 29,103 1.35% 1.34% (0.73)% 55%
Year ended 7/31/06 (0.20) $16.17 4.34% $ 34,437 1.33% 1.33% (0.49)% 69%
Year ended 7/31/05 -- $15.69 23.35% $ 41,921 1.34% 1.34% (0.29)% 54%
Year ended 7/31/04 -- $12.72 7.61% $ 49,586 1.34% 1.34% (0.93)% 83%
Year ended 7/31/03 -- $11.82 17.03% $ 35,504 1.35% 1.35% (0.89)% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Class B Shares
Six months ended 1/31/08 + (2.19) $11.35 (6.68)%* $ 5,236 2.12%** 2.10%** (1.39)%** 49%
Year ended 7/31/07 (3.50) $14.31 16.14%@ $ 5,707 2.09% 2.09% (1.48)% 55%
Year ended 7/31/06 (0.19) $15.50 3.51% $ 6,507 2.08% 2.08% (1.24)% 69%
Year ended 7/31/05 -- $15.16 22.46% $ 6,874 2.09% 2.09% (1.03)% 54%
Year ended 7/31/04 -- $12.38 6.82% $ 6,730 2.09% 2.09% (1.68)% 83%
Year ended 7/31/03 -- $11.59 16.13% $ 5,846 2.10% 2.10% (1.64)% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Class C Shares
Six months ended 1/31/08 + (2.19) $10.63 (7.44)%* $ 787 2.12%** 2.10%** (1.38)%** 49%
Year ended 7/31/07 (3.50) $13.65 16.07%@ $ 802 2.09% 2.09% (1.47)% 55%
Year ended 7/31/06 (0.19) $14.94 3.57% $ 1,122 2.08% 2.08% (1.22)% 69%
Year ended 7/31/05 -- $14.61 22.36% $ 1,600 2.09% 2.09% (1.03)% 54%
Year ended 7/31/04 -- $11.94 6.89% $ 1,700 2.09% 2.09% (1.68)% 83%
Year ended 7/31/03 -- $11.17 15.99% $ 1,525 2.10% 2.10% (1.64)% 25%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
137
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
------------------------------ ----------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Institutional Shares
Six months ended 1/31/08 + $18.52 0.01+++ 0.66 0.67 (0.01) (2.67)
Year ended 7/31/07 $15.67 0.11+++@ 3.07 3.18 (0.08) (0.25)
Year ended 7/31/06 $16.34 (0.03)+++ (0.64) (0.67) -- --
Year ended 7/31/05 $14.61 0.03 1.74 1.77 (0.04) --
Year ended 7/31/04 $14.23 (0.04) 0.42 0.38 -- --
Year ended 7/31/03 $12.91 0.01 1.31 1.32 --^ --
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Class A Shares
Six months ended 1/31/08 + $18.12 (0.01)+++ 0.65 0.64 -- (2.67)
Year ended 7/31/07 $15.36 0.06+++@ 3.01 3.07 (0.06) (0.25)
Year ended 7/31/06 $16.05 (0.07)+++ (0.62) (0.69) -- --
Year ended 7/31/05 $14.38 (0.02) 1.72 1.70 (0.03) --
Year ended 7/31/04 $14.04 (0.08) 0.42 0.34 -- --
Year ended 7/31/03 $12.77 (0.02) 1.29 1.27 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Class B Shares
Six months ended 1/31/08 + $17.30 (0.08)+++ 0.64 0.56 -- (2.67)
Year ended 7/31/07 $14.74 (0.06)+++@ 2.88 2.82 (0.01) (0.25)
Year ended 7/31/06 $15.52 (0.18)+++ (0.60) (0.78) -- --
Year ended 7/31/05 $13.99 (0.14) 1.67 1.53 --^ --
Year ended 7/31/04 $13.75 (0.19) 0.43 0.24 -- --
Year ended 7/31/03 $12.60 (0.12) 1.27 1.15 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Class C Shares
Six months ended 1/31/08 + $16.85 (0.08)+++ 0.63 0.55 -- (2.67)
Year ended 7/31/07 $14.36 (0.06)+++@ 2.81 2.75 (0.01) (0.25)
Year ended 7/31/06 $15.12 (0.18)+++ (0.58) (0.76) -- --
Year ended 7/31/05 $13.63 (0.15) 1.64 1.49 --^ --
Year ended 7/31/04 $13.40 (0.20) 0.43 0.23 -- --
Year ended 7/31/03 $12.28 (0.11) 1.23 1.12 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Institutional Shares
Six months ended 1/31/08 + $25.50 0.16+++ (0.16) 0.00 (0.29) --
Year ended 7/31/07 $22.56 0.57+++@ 2.85 3.42 (0.48) --
Year ended 7/31/06 $21.71 0.28+++ 0.83 1.11 (0.26) --
Year ended 7/31/05 $19.10 (0.15)+++ 2.76 2.61 -- --
Year ended 7/31/04 $18.17 (0.19) 1.12 0.93 -- --
Year ended 7/31/03 $18.06 (0.12) 0.23 0.11 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Class A Shares
Six months ended 1/31/08 + $25.07 0.13+++ (0.17) (0.04) (0.25) --
Year ended 7/31/07 $22.18 0.49+++@ 2.82 3.31 (0.42) --
Year ended 7/31/06 $21.34 0.23+++ 0.85 1.08 (0.24) --
Year ended 7/31/05 $18.82 (0.19)+++ 2.71 2.52 -- --
Year ended 7/31/04 $17.94 (0.20) 1.08 0.88 -- --
Year ended 7/31/03 $17.88 (0.16) 0.22 0.06 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Class B Shares
Six months ended 1/31/08 + $24.31 0.03+++ (0.15) (0.12) (0.15) --
Year ended 7/31/07 $21.53 0.31+++@ 2.71 3.02 (0.24) --
Year ended 7/31/06 $20.83 0.06+++ 0.80 0.86 (0.16) --
Year ended 7/31/05 $18.51 (0.33)+++ 2.65 2.32 -- --
Year ended 7/31/04 $17.77 (0.31) 1.05 0.74 -- --
Year ended 7/31/03 $17.85 (0.24) 0.16 (0.08) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Class C Shares
Six months ended 1/31/08 + $23.67 0.03+++ (0.15) (0.12) (0.15) --
Year ended 7/31/07 $20.97 0.29+++@ 2.66 2.95 (0.25) --
Year ended 7/31/06 $20.27 0.07+++ 0.78 0.85 (0.15) --
Year ended 7/31/05 $18.01 (0.32)+++ 2.58 2.26 -- --
Year ended 7/31/04 $17.30 (0.36) 1.07 0.71 -- --
8/1/02(d) to 7/31/03 $17.37 (0.30) 0.23 (0.07) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
138
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
------------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Institutional Shares
Six months ended 1/31/08 + (2.68) $16.51 2.28%* $510,897 1.10%** 1.07%** 0.09%** 25%
Year ended 7/31/07 (0.33) $18.52 20.51%@ $535,734 1.10% 1.08% 0.52% 98%
Year ended 7/31/06 -- $15.67 (4.10)% $616,737 1.08% 1.08% (0.18)% 108%
Year ended 7/31/05 (0.04) $16.34 12.13% $707,766 1.08% 1.08% 0.16% 71%
Year ended 7/31/04 -- $14.61 2.67% $882,256 1.07% 1.07% (0.24)% 35%
Year ended 7/31/03 --^ $14.23 10.23% $795,988 1.08% 1.08% 0.05% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Class A Shares
Six months ended 1/31/08 + (2.67) $16.09 2.16%* $ 82,649 1.35%** 1.32%** (0.15)%** 25%
Year ended 7/31/07 (0.31) $18.12 20.18%@ $ 92,728 1.35% 1.33% 0.27% 98%
Year ended 7/31/06 -- $15.36 (4.30)% $114,828 1.33% 1.33% (0.42)% 108%
Year ended 7/31/05 (0.03) $16.05 11.83% $165,836 1.33% 1.33% (0.08)% 71%
Year ended 7/31/04 -- $14.38 2.42% $220,904 1.32% 1.32% (0.49)% 35%
Year ended 7/31/03 -- $14.04 9.95% $211,221 1.33% 1.33% (0.19)% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Class B Shares
Six months ended 1/31/08 + (2.67) $15.19 1.78%* $ 10,453 2.10%** 2.07%** (0.91)%** 25%
Year ended 7/31/07 (0.26) $17.30 19.29%@ $ 11,347 2.10% 2.08% (0.49)% 98%
Year ended 7/31/06 -- $14.74 (5.03)% $ 13,259 2.08% 2.08% (1.18)% 108%
Year ended 7/31/05 --^ $15.52 10.95% $ 17,791 2.08% 2.08% (0.85)% 71%
Year ended 7/31/04 -- $13.99 1.75% $ 20,947 2.07% 2.07% (1.24)% 35%
Year ended 7/31/03 -- $13.75 9.13% $ 20,700 2.08% 2.08% (0.94)% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
Quality Growth Class C Shares
Six months ended 1/31/08 + (2.67) $14.73 1.77%* $ 2,036 2.10%** 2.07%** (0.90)%** 25%
Year ended 7/31/07 (0.26) $16.85 19.30%@ $ 2,275 2.10% 2.08% (0.45)% 98%
Year ended 7/31/06 -- $14.36 (5.03)% $ 3,199 2.08% 2.08% (1.17)% 108%
Year ended 7/31/05 --^ $15.12 10.95% $ 5,238 2.08% 2.08% (0.83)% 71%
Year ended 7/31/04 -- $13.63 1.72% $ 7,536 2.07% 2.07% (1.24)% 35%
Year ended 7/31/03 -- $13.40 9.12% $ 8,380 2.08% 2.08% (0.94)% 19%
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Institutional Shares
Six months ended 1/31/08 + (0.29) $25.21 (0.03)%* $ 18,524 1.71%** 0.73%** 1.24%** 39%
Year ended 7/31/07 (0.48) $25.50 15.22%@ $ 18,875 1.67% 0.73% 2.08% 68%
Year ended 7/31/06 (0.26) $22.56 5.14% $ 15,759 2.72% 0.73% 1.25% 147%
Year ended 7/31/05 -- $21.71 13.66% $ 5,973 1.99% 1.45% (0.73)% 28%
Year ended 7/31/04 -- $19.10 5.12% $ 7,166 1.74% 1.43% (0.68)% 81%
Year ended 7/31/03 -- $18.17 0.61% $ 14,659 1.63% 1.47% (0.67)% 50%
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Class A Shares
Six months ended 1/31/08 + (0.25) $24.78 (0.17)%* $ 3,436 1.96%** 0.98%** 1.00%** 39%
Year ended 7/31/07 (0.42) $25.07 14.97%@ $ 3,926 1.92% 0.98% 1.80% 68%
Year ended 7/31/06 (0.24) $22.18 5.05% $ 4,670 2.93% 0.98% 1.08% 147%
Year ended 7/31/05 -- $21.34 13.39% $ 7,087 2.24% 1.70% (0.98)% 28%
Year ended 7/31/04 -- $18.82 4.91% $ 9,391 2.00% 1.68% (0.98)% 81%
Year ended 7/31/03 -- $17.94 0.34% $ 8,264 1.89% 1.72% (0.92)% 50%
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Class B Shares
Six months ended 1/31/08 + (0.15) $24.04 (0.54)%* $ 305 2.71%** 1.73%** 0.25%** 39%
Year ended 7/31/07 (0.24) $24.31 14.11%@ $ 369 2.66% 1.73% 1.08% 68%
Year ended 7/31/06 (0.16) $21.53 4.13% $ 371 3.70% 1.73% 0.27% 147%
Year ended 7/31/05 -- $20.83 12.53% $ 311 2.97% 2.45% (1.73)% 28%
Year ended 7/31/04 -- $18.51 4.16% $ 441 2.74% 2.43% (1.74)% 81%
Year ended 7/31/03 -- $17.77 (0.45)% $ 350 2.63% 2.47% (1.68)% 50%
- ------------------------------------------------------------------------------------------------------------------------------------
Dividend Growth Class C Shares
Six months ended 1/31/08 + (0.15) $23.40 (0.54)%* $ 300 2.71%** 1.73%** 0.25%** 39%
Year ended 7/31/07 (0.25) $23.67 14.12%@ $ 356 2.67% 1.73% 1.02% 68%
Year ended 7/31/06 (0.15) $20.97 4.22% $ 389 3.71% 1.73% 0.32% 147%
Year ended 7/31/05 -- $20.27 12.55% $ 516 3.00% 2.45% (1.73)% 28%
Year ended 7/31/04 -- $18.01 4.10% $ 580 2.75% 2.43% (1.71)% 81%
8/1/02(d) to 7/31/03 -- $17.30 (0.40)% $ 727 2.64% 2.47% (1.67)% 50%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
139
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
------------------------------ ---------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- ----------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Institutional Shares
Six months ended 1/31/08 + $ 7.02 0.01+++ (0.84) (0.83) -- (2.50)
Year ended 7/31/07 $ 8.05 0.01+++ 0.93 0.94 (0.05) (1.92)
Year ended 7/31/06 $11.00 0.02+++ 0.17 0.19 (0.01) (3.13)
Year ended 7/31/05 $10.32 (0.01)+++ 1.41 1.40 -- (0.72)
Year ended 7/31/04 $ 8.20 (0.02)+++ 2.66 2.64 -- (0.52)
Year ended 7/31/03 $ 5.89 (0.04)+++ 2.40 2.36 -- (0.05)
- ----------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Class A Shares
Six months ended 1/31/08 + $ 6.73 --^ (0.80) (0.80) -- (2.50)
Year ended 7/31/07 $ 7.80 (0.01)+++ 0.90 0.89 (0.04) (1.92)
Year ended 7/31/06 $10.78 --^+++ 0.15 0.15 --^ (3.13)
Year ended 7/31/05 $10.14 (0.03)+++ 1.39 1.36 -- (0.72)
Year ended 7/31/04 $ 8.08 (0.05)+++ 2.63 2.58 -- (0.52)
Year ended 7/31/03 $ 5.82 (0.06)+++ 2.37 2.31 -- (0.05)
- ----------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Class B Shares
Six months ended 1/31/08 + $ 6.39 (0.02)+++ (0.75) (0.77) -- (2.50)
Year ended 7/31/07 $ 7.52 (0.06)+++ 0.86 0.80 (0.01) (1.92)
Year ended 7/31/06 $10.56 (0.06)+++ 0.15 0.09 -- (3.13)
Year ended 7/31/05 $ 9.96 (0.04)+++ 1.36 1.32 -- (0.72)
Year ended 7/31/04 $ 7.97 (0.08)+++ 2.59 2.51 -- (0.52)
Year ended 7/31/03 $ 5.79 (0.10)+++ 2.33 2.23 -- (0.05)
- ----------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Class C Shares
Six months ended 1/31/08 + $ 6.39 (0.02)+++ (0.75) (0.77) -- (2.50)
Year ended 7/31/07 $ 7.52 (0.05)+++ 0.84 0.79 -- (1.92)
Year ended 7/31/06 $10.56 (0.06)+++ 0.15 0.09 -- (3.13)
Year ended 7/31/05 $ 9.96 (0.04)+++ 1.36 1.32 -- (0.72)
Year ended 7/31/04 $ 7.97 (0.08)+++ 2.59 2.51 -- (0.52)
Year ended 7/31/03 $ 5.79 (0.10)+++ 2.33 2.23 -- (0.05)
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Institutional Shares
Six months ended 1/31/08 + $20.29 0.08+++ (1.20) (1.12) (0.16) (2.37)
Year ended 7/31/07 $20.89 0.13+++ 2.12 2.25 (0.08) (2.77)
Year ended 7/31/06 $22.82 0.09 0.46 0.55 (0.05) (2.43)
Year ended 7/31/05 $20.01 (0.04)+++ 4.51 4.47 -- (1.66)
Year ended 7/31/04 $17.54 (0.03)+++ 3.50 3.47 (0.02) (0.98)
4/1/03(d) to 7/31/03 $15.00 --^ 2.54 2.54 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Class A Shares
Six months ended 1/31/08 + $20.09 0.06+++ (1.19) (1.13) (0.12) (2.37)
Year ended 7/31/07 $20.74 0.08+++ 2.11 2.19 (0.07) (2.77)
Year ended 7/31/06 $22.68 0.02 0.47 0.49 -- (2.43)
Year ended 7/31/05 $19.95 (0.10)+++ 4.49 4.39 -- (1.66)
Year ended 7/31/04 $17.52 (0.11)+++ 3.52 3.41 --^ (0.98)
4/1/03(d) to 7/31/03 $15.00 (0.01) 2.53 2.52 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Class B Shares
Six months ended 1/31/08 + $19.34 (0.01)+++ (1.14) (1.15) -- (2.37)
Year ended 7/31/07 $20.18 (0.08)+++ 2.05 1.97 (0.04) (2.77)
Year ended 7/31/06 $22.29 (0.13) 0.45 0.32 -- (2.43)
Year ended 7/31/05 $19.76 (0.24)+++ 4.43 4.19 -- (1.66)
Year ended 7/31/04 $17.48 (0.25)+++ 3.51 3.26 -- (0.98)
4/1/03(d) to 7/31/03 $15.00 (0.03) 2.51 2.48 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Class C Shares
Six months ended 1/31/08 + $19.31 (0.01)+++ (1.15) (1.16) -- (2.37)
Year ended 7/31/07 $20.14 (0.08)+++ 2.06 1.98 (0.04) (2.77)
Year ended 7/31/06 $22.25 (0.14) 0.46 0.32 -- (2.43)
Year ended 7/31/05 $19.74 (0.24)+++ 4.41 4.17 -- (1.66)
Year ended 7/31/04 $17.48 (0.26)+++ 3.50 3.24 -- (0.98)
4/1/03(d) to 7/31/03 $15.00 (0.03) 2.51 2.48 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
140
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
---------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets(a) Assets (b) Net Assets Rate (e)
- ---------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Institutional Shares
Six months ended 1/31/08 + (2.50) $ 3.69 (13.85)%* $ 28,827 1.76%** 1.36%** 0.28%** 28%
Year ended 7/31/07 (1.97) $ 7.02 12.53% $ 51,541 1.52% 1.35% 0.17% 72%
Year ended 7/31/06 (3.14) $ 8.05 1.93% $ 72,981 1.40% 1.37% 0.23% 42%
Year ended 7/31/05 (0.72) $11.00 13.86% $ 98,885 1.35% 1.35% (0.07)% 12%
Year ended 7/31/04 (0.52) $10.32 32.84% $155,798 1.33% 1.33% (0.25)% 23%
Year ended 7/31/03 (0.05) $ 8.20 40.26% $100,676 1.47% 1.40% (0.68)% 28%
- ---------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Class A Shares
Six months ended 1/31/08 + (2.50) $ 3.43 (13.96)%* $ 12,220 2.05%** 1.61%** 0.08%** 28%
Year ended 7/31/07 (1.96) $ 6.73 12.24% $ 11,486 1.77% 1.60% (0.08)% 72%
Year ended 7/31/06 (3.13) $ 7.80 1.59% $ 17,759 1.65% 1.62% (0.05)% 42%
Year ended 7/31/05 (0.72) $10.78 13.60% $ 29,172 1.60% 1.60% (0.31)% 12%
Year ended 7/31/04 (0.52) $10.14 32.56% $ 41,402 1.58% 1.58% (0.49)% 23%
Year ended 7/31/03 (0.05) $ 8.08 39.88% $ 18,297 1.69% 1.65% (0.95)% 28%
- ---------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Class B Shares
Six months ended 1/31/08 + (2.50) $ 3.12 (14.33)%* $ 3,488 2.76%** 2.35%** (0.70)%** 28%
Year ended 7/31/07 (1.93) $ 6.39 11.38% $ 5,069 2.53% 2.35% (0.87)% 72%
Year ended 7/31/06 (3.13) $ 7.52 0.86% $ 6,032 2.40% 2.37% (0.73)% 42%
Year ended 7/31/05 (0.72) $10.56 13.54% $ 7,348 2.36% 1.73% (0.40)% 12%
Year ended 7/31/04 (0.52) $ 9.96 32.13% $ 6,937 2.33% 1.89% (0.81)% 23%
Year ended 7/31/03 (0.05) $ 7.97 38.70% $ 4,254 2.47% 2.40% (1.66)% 28%
- ---------------------------------------------------------------------------------------------------------------------------------
Micro Cap Value Class C Shares
Six months ended 1/31/08 + (2.50) $ 3.12 (14.33)%* $ 1,881 2.76%** 2.35%** (0.70)%** 28%
Year ended 7/31/07 (1.92) $ 6.39 11.28% $ 2,853 2.51% 2.35% (0.75)% 72%
Year ended 7/31/06 (3.13) $ 7.52 0.86% $ 5,161 2.40% 2.37% (0.71)% 42%
Year ended 7/31/05 (0.72) $10.56 13.54% $ 6,143 2.36% 1.73% (0.39)% 12%
Year ended 7/31/04 (0.52) $ 9.96 32.13% $ 5,624 2.33% 1.81% (0.82)% 23%
Year ended 7/31/03 (0.05) $ 7.97 38.70% $ 1,166 2.47% 2.40% (1.66)% 28%
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Institutional Shares
Six months ended 1/31/08 + (2.53) $16.64 (5.94)%* $ 82,288 1.28%** 1.19%** 0.87%** 24%
Year ended 7/31/07 (2.85) $20.29 10.77% $110,873 1.25% 1.20% 0.61% 46%
Year ended 7/31/06 (2.48) $20.89 2.62% $116,503 1.24% 1.21% 0.39% 99%
Year ended 7/31/05 (1.66) $22.82 23.59% $158,505 1.20% 1.20% (0.20)% 105%
Year ended 7/31/04 (1.00) $20.01 20.11% $107,344 1.41% 1.25% (0.15)% 279%
4/1/03(d) to 7/31/03 -- $17.54 16.87%* $ 72,783 1.60%** 1.24%** 0.03%** 39%
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Class A Shares
Six months ended 1/31/08 + (2.49) $16.47 (6.06)%* $ 2,200 1.54%** 1.45%** 0.61%** 24%
Year ended 7/31/07 (2.84) $20.09 10.53% $ 2,198 1.50% 1.45% 0.36% 46%
Year ended 7/31/06 (2.43) $20.74 2.36% $ 2,434 1.49% 1.46% 0.11% 99%
Year ended 7/31/05 (1.66) $22.68 23.24% $ 2,715 1.45% 1.45% (0.48)% 105%
Year ended 7/31/04 (0.98) $19.95 19.81% $ 2,277 1.63% 1.49% (0.53)% 279%
4/1/03(d) to 7/31/03 -- $17.52 16.73%* $ 216 1.86%** 1.47%** (0.21)%** 39%
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Class B Shares
Six months ended 1/31/08 + (2.37) $15.82 (6.40)%* $ 878 2.29%** 2.20%** (0.14)%** 24%
Year ended 7/31/07 (2.81) $19.34 9.63% $ 1,104 2.25% 2.20% (0.39)% 46%
Year ended 7/31/06 (2.43) $20.18 1.59% $ 1,221 2.24% 2.21% (0.64)% 99%
Year ended 7/31/05 (1.66) $22.29 22.35% $ 1,142 2.20% 2.19% (1.18)% 105%
Year ended 7/31/04 (0.98) $19.76 19.02% $ 503 2.38% 2.24% (1.26)% 279%
4/1/03(d) to 7/31/03 -- $17.48 16.47%* $ 103 2.60%** 2.22%** (1.07)%** 39%
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Class C Shares
Six months ended 1/31/08 + (2.37) $15.78 (6.41)%* $ 551 2.29%** 2.20%** (0.14)%** 24%
Year ended 7/31/07 (2.81) $19.31 9.66% $ 713 2.25% 2.20% (0.39)% 46%
Year ended 7/31/06 (2.43) $20.14 1.59% $ 839 2.24% 2.21% (0.64)% 99%
Year ended 7/31/05 (1.66) $22.25 22.39% $ 927 2.20% 2.19% (1.21)% 105%
Year ended 7/31/04 (0.98) $19.74 18.85% $ 561 2.38% 2.24% (1.31)% 279%
4/1/03(d) to 7/31/03 -- $17.48 16.47%* $ 15 2.62%** 2.23%** (0.97)%** 39%
- ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
141
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
---------------------------- --------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- ----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Institutional Shares
Six months ended 1/31/08 + $25.65 0.16+++ (2.04) (1.88) (0.18) (3.56)
Year ended 7/31/07 $25.68 0.37+++ 4.19 4.56 (0.36) (4.23)
Year ended 7/31/06 $26.04 0.26 1.77 2.03 (0.24) (2.15)
Year ended 7/31/05 $22.58 0.10 4.85 4.95 (0.11) (1.38)
Year ended 7/31/04 $19.02 0.06 3.62 3.68 (0.05) (0.07)
Year ended 7/31/03 $15.86 0.02 3.14 3.16 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Class A Shares
Six months ended 1/31/08 + $25.30 0.12+++ (2.00) (1.88) (0.16) (3.56)
Year ended 7/31/07 $25.39 0.30+++ 4.13 4.43 (0.29) (4.23)
Year ended 7/31/06 $25.76 0.19 1.77 1.96 (0.18) (2.15)
Year ended 7/31/05 $22.36 0.04 4.79 4.83 (0.05) (1.38)
Year ended 7/31/04 $18.85 --^ 3.59 3.59 (0.01) (0.07)
Year ended 7/31/03 $15.77 --^ 3.08 3.08 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Class B Shares
Six months ended 1/31/08 + $24.35 0.04+++ (1.93) (1.89) (0.06) (3.56)
Year ended 7/31/07 $24.61 0.10+++ 3.99 4.09 (0.12) (4.23)
Year ended 7/31/06 $25.11 --^ 1.71 1.71 (0.06) (2.15)
Year ended 7/31/05 $21.94 (0.14) 4.69 4.55 -- (1.38)
Year ended 7/31/04 $18.63 (0.14) 3.52 3.38 -- (0.07)
Year ended 7/31/03 $15.69 (0.13) 3.07 2.94 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Class C Shares
Six months ended 1/31/08 + $24.32 0.04+++ (1.92) (1.88) (0.08) (3.56)
Year ended 7/31/07 $24.59 0.11+++ 3.98 4.09 (0.13) (4.23)
Year ended 7/31/06 $25.09 --^ 1.71 1.71 (0.06) (2.15)
Year ended 7/31/05 $21.93 (0.15) 4.69 4.54 -- (1.38)
Year ended 7/31/04 $18.61 (0.13) 3.52 3.39 -- (0.07)
Year ended 7/31/03 $15.69 (0.12) 3.04 2.92 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Institutional Shares
Six months ended 1/31/08 + $14.39 0.13+++ (0.85) (0.72) (0.14) (0.90)
Year ended 7/31/07 $14.72 0.22+++@ 1.80 2.02 (0.22) (2.13)
Year ended 7/31/06 $15.08 0.21 1.07 1.28 (0.20) (1.44)
Year ended 7/31/05 $13.52 0.18 1.95 2.13 (0.18) (0.39)
Year ended 7/31/04 $11.85 0.15 2.08 2.23 (0.16) (0.40)
Year ended 7/31/03 $10.85 0.18+++ 1.14 1.32 (0.16) (0.16)
- ----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Class A Shares
Six months ended 1/31/08 + $14.35 0.11+++ (0.85) (0.74) (0.12) (0.90)
Year ended 7/31/07 $14.69 0.18+++@ 1.79 1.97 (0.18) (2.13)
Year ended 7/31/06 $15.05 0.17 1.07 1.24 (0.16) (1.44)
Year ended 7/31/05 $13.50 0.14 1.94 2.08 (0.14) (0.39)
Year ended 7/31/04 $11.83 0.12 2.08 2.20 (0.13) (0.40)
Year ended 7/31/03 $10.83 0.16+++ 1.14 1.30 (0.14) (0.16)
- ----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Class B Shares
Six months ended 1/31/08 + $14.49 0.06+++ (0.86) (0.80) (0.06) (0.90)
Year ended 7/31/07 $14.81 0.08+++@ 1.80 1.88 (0.07) (2.13)
Year ended 7/31/06 $15.17 0.06 1.08 1.14 (0.06) (1.44)
Year ended 7/31/05 $13.61 0.04 1.95 1.99 (0.04) (0.39)
Year ended 7/31/04 $11.93 0.03 2.09 2.12 (0.04) (0.40)
Year ended 7/31/03 $10.93 0.08+++ 1.15 1.23 (0.07) (0.16)
- ----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Class C Shares
Six months ended 1/31/08 + $14.21 0.06+++ (0.85) (0.79) (0.06) (0.90)
Year ended 7/31/07 $14.56 0.08+++@ 1.77 1.85 (0.07) (2.13)
Year ended 7/31/06 $14.94 0.06 1.06 1.12 (0.06) (1.44)
Year ended 7/31/05 $13.40 0.03 1.94 1.97 (0.04) (0.39)
Year ended 7/31/04 $11.76 0.02 2.07 2.09 (0.05) (0.40)
Year ended 7/31/03 $10.80 0.08+++ 1.11 1.19 (0.07) (0.16)
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
142
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
-------------------------------------------------------
Ratios of Ratios of Ratios of
Net Total Net Expenses Expenses Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- -----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Institutional Shares
Six months ended 1/31/08 + (3.74) $20.03 (8.53)%* $178,097 1.37%** 1.19%** 1.34%** 23%
Year ended 7/31/07 (4.59) $25.65 18.93% $223,709 1.31% 1.22% 1.40% 23%
Year ended 7/31/06 (2.39) $25.68 8.38% $226,189 1.31% 1.29% 0.99% 40%
Year ended 7/31/05 (1.49) $26.04 22.51% $270,131 1.30% 1.30% 0.41% 24%
Year ended 7/31/04 (0.12) $22.58 19.36% $235,228 1.30% 1.30% 0.29% 17%
Year ended 7/31/03 -- $19.02 19.92% $182,485 1.36% 1.33% 0.17% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Class A Shares
Six months ended 1/31/08 + (3.72) $19.70 (8.63)%* $ 61,990 1.63%** 1.45%** 1.07%** 23%
Year ended 7/31/07 (4.52) $25.30 18.58% $ 44,717 1.56% 1.47% 1.14% 23%
Year ended 7/31/06 (2.33) $25.39 8.16% $ 38,714 1.56% 1.54% 0.74% 40%
Year ended 7/31/05 (1.43) $25.76 22.22% $ 39,433 1.55% 1.55% 0.15% 24%
Year ended 7/31/04 (0.08) $22.36 19.07% $ 33,156 1.55% 1.55% 0.04% 17%
Year ended 7/31/03 -- $18.85 19.53% $ 19,667 1.64% 1.58% 0.01% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Class B Shares
Six months ended 1/31/08 + (3.62) $18.84 (8.98)%* $ 19,235 2.38%** 2.20%** 0.33%** 23%
Year ended 7/31/07 (4.35) $24.35 17.65% $ 23,974 2.31% 2.22% 0.40% 23%
Year ended 7/31/06 (2.21) $24.61 7.33% $ 21,679 2.31% 2.29% (0.01)% 40%
Year ended 7/31/05 (1.38) $25.11 21.33% $ 22,278 2.30% 2.30% (0.60)% 24%
Year ended 7/31/04 (0.07) $21.94 18.15% $ 18,795 2.30% 2.30% (0.71)% 17%
Year ended 7/31/03 -- $18.63 18.74% $ 14,087 2.39% 2.33% (0.81)% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
All Cap Value Class C Shares
Six months ended 1/31/08 + (3.64) $18.80 (8.97)%* $ 9,554 2.38%** 2.19%** 0.33%** 23%
Year ended 7/31/07 (4.36) $24.32 17.67% $ 8,150 2.31% 2.22% 0.40% 23%
Year ended 7/31/06 (2.21) $24.59 7.33% $ 4,455 2.31% 2.29% (0.01)% 40%
Year ended 7/31/05 (1.38) $25.09 21.24% $ 4,553 2.30% 2.30% (0.58)% 24%
Year ended 7/31/04 (0.07) $21.93 18.22% $ 3,824 2.30% 2.30% (0.71)% 17%
Year ended 7/31/03 -- $18.61 18.61% $ 2,036 2.39% 2.33% (0.81)% 23%
- -----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Institutional Shares
Six months ended 1/31/08 + (1.04) $12.63 (5.53)%* $553,985 1.07%** 1.01%** 1.81%** 18%
Year ended 7/31/07 (2.35) $14.39 14.52%@ $649,497 1.07% 1.03% 1.50% 49%
Year ended 7/31/06 (1.64) $14.72 9.29% $581,507 1.07% 1.07% 1.40% 57%
Year ended 7/31/05 (0.57) $15.08 16.07% $574,251 1.07% 1.07% 1.27% 31%
Year ended 7/31/04 (0.56) $13.52 19.22% $632,120 1.07% 1.07% 1.27% 22%
Year ended 7/31/03 (0.32) $11.85 12.53% $335,967 1.10% 1.08% 1.74% 79%
- -----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Class A Shares
Six months ended 1/31/08 + (1.02) $12.59 (5.61)%* $ 23,434 1.32%** 1.26%** 1.56%** 18%
Year ended 7/31/07 (2.31) $14.35 14.13%@ $ 29,725 1.32% 1.27% 1.24% 49%
Year ended 7/31/06 (1.60) $14.69 9.05% $ 22,968 1.32% 1.32% 1.16% 57%
Year ended 7/31/05 (0.53) $15.05 15.74% $ 24,805 1.32% 1.32% 1.01% 31%
Year ended 7/31/04 (0.53) $13.50 18.96% $ 21,738 1.32% 1.32% 1.00% 22%
Year ended 7/31/03 (0.30) $11.83 12.30% $ 14,100 1.36% 1.33% 1.51% 79%
- -----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Class B Shares
Six months ended 1/31/08 + (0.96) $12.73 (6.01)%* $ 4,931 2.07%** 2.01%** 0.81%** 18%
Year ended 7/31/07 (2.20) $14.49 13.38%@ $ 5,872 2.07% 2.03% 0.50% 49%
Year ended 7/31/06 (1.50) $14.81 8.22% $ 5,783 2.07% 2.07% 0.40% 57%
Year ended 7/31/05 (0.43) $15.17 14.85% $ 5,739 2.07% 2.07% 0.26% 31%
Year ended 7/31/04 (0.44) $13.61 18.07% $ 4,807 2.07% 2.07% 0.27% 22%
Year ended 7/31/03 (0.23) $11.93 11.50% $ 3,408 2.11% 2.08% 0.76% 79%
- -----------------------------------------------------------------------------------------------------------------------------------
Disciplined Large Cap Value Class C Shares
Six months ended 1/31/08 + (0.96) $12.46 (5.98)%* $ 2,152 2.07%** 2.01%** 0.80%** 18%
Year ended 7/31/07 (2.20) $14.21 13.34%@ $ 2,533 2.07% 2.02% 0.50% 49%
Year ended 7/31/06 (1.50) $14.56 8.21% $ 2,227 2.07% 2.07% 0.41% 57%
Year ended 7/31/05 (0.43) $14.94 14.96% $ 2,313 2.07% 2.07% 0.26% 31%
Year ended 7/31/04 (0.45) $13.40 18.07% $ 1,832 2.06% 2.06% 0.27% 22%
Year ended 7/31/03 (0.23) $11.76 11.28% $ 884 2.10% 2.08% 0.75% 79%
- -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
143
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
----------------------------- ----------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Institutional Shares
Six months ended 1/31/08 + $16.95 0.06+++ (1.06) (1.00) (0.06) (0.08)
Year ended 7/31/07 $15.16 0.17+++ 1.80 1.97 (0.12) (0.06)
Year ended 7/31/06 $14.61 0.17 0.72 0.89 (0.16) (0.18)
Year ended 7/31/05 $13.20 0.18 1.76 1.94 (0.18) (0.35)
Year ended 7/31/04 $11.84 0.12 1.36 1.48 (0.12) --
Year ended 7/31/03 $11.20 0.12 0.63 0.75 (0.11) --
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Class A Shares
Six months ended 1/31/08 + $16.71 0.04+++ (1.06) (1.02) (0.02) (0.08)
Year ended 7/31/07 $14.96 0.12+++ 1.78 1.90 (0.09) (0.06)
Year ended 7/31/06 $14.42 0.13 0.71 0.84 (0.12) (0.18)
Year ended 7/31/05 $13.04 0.14 1.73 1.87 (0.14) (0.35)
Year ended 7/31/04 $11.70 0.07 1.36 1.43 (0.09) --
Year ended 7/31/03 $11.07 0.08 0.64 0.72 (0.09) --
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Class B Shares
Six months ended 1/31/08 + $16.69 (0.02)+++ (1.04) (1.06) -- (0.08)
Year ended 7/31/07 $14.98 --+++ 1.78 1.78 (0.01) (0.06)
Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18)
Year ended 7/31/05 $13.08 0.04 1.74 1.78 (0.05) (0.35)
Year ended 7/31/04 $11.75 (0.02) 1.36 1.34 (0.01) --
Year ended 7/31/03 $11.12 --^ 0.65 0.65 (0.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Class C Shares
Six months ended 1/31/08 + $16.70 (0.02)+++ (1.05) (1.07) -- (0.08)
Year ended 7/31/07 $14.98 --+++ 1.79 1.79 (0.01) (0.06)
Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18)
Year ended 7/31/05 $13.08 0.03 1.74 1.77 (0.04) (0.35)
Year ended 7/31/04 $11.76 (0.01) 1.35 1.34 (0.02) --
Year ended 7/31/03 $11.15 0.01 0.63 0.64 (0.03) --
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
144
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
------------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income/(Loss) Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Institutional Shares
Six months ended 1/31/08 + (0.14) $15.81 (5.90)%* $152,728 1.30%** 0.92%** 0.75%** 46%
Year ended 7/31/07 (0.18) $16.95 12.94% $180,126 1.02%## 0.92%## 0.99% 141%
Year ended 7/31/06 (0.34) $15.16 6.12% $166,510 1.03% 0.92% 1.09% 126%
Year ended 7/31/05 (0.53) $14.61 14.92% $169,723 1.05% 0.92% 1.17% 102%
Year ended 7/31/04 (0.12) $13.20 12.50% $ 90,222 1.04% 0.92% 0.84% 101%
Year ended 7/31/03 (0.11) $11.84 6.79% $181,278 0.99% 0.92% 0.99% 13%
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Class A Shares
Six months ended 1/31/08 + (0.10) $15.59 (6.11)%* $ 16,166 1.55%** 1.17%** 0.50%** 46%
Year ended 7/31/07 (0.15) $16.71 12.70% $ 18,972 1.27%## 1.17%## 0.75% 141%
Year ended 7/31/06 (0.30) $14.96 5.84% $ 20,923 1.27% 1.17% 0.85% 126%
Year ended 7/31/05 (0.49) $14.42 14.58% $ 24,026 1.31% 1.17% 0.99% 102%
Year ended 7/31/04 (0.09) $13.04 12.21% $ 25,573 1.29% 1.17% 0.58% 101%
Year ended 7/31/03 (0.09) $11.70 6.56% $ 21,288 1.24% 1.17% 0.72% 13%
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Class B Shares
Six months ended 1/31/08 + (0.08) $15.55 (6.38)%* $ 898 2.30%** 1.92%** (0.25)%** 46%
Year ended 7/31/07 (0.07) $16.69 11.86% $ 1,044 2.03%## 1.92%## (0.01)% 141%
Year ended 7/31/06 (0.21) $14.98 5.07% $ 953 2.03% 1.92% 0.09% 126%
Year ended 7/31/05 (0.40) $14.46 13.67% $ 1,007 2.06% 1.92% 0.18% 102%
Year ended 7/31/04 (0.01) $13.08 11.47% $ 783 2.04% 1.92% (0.17)% 101%
Year ended 7/31/03 (0.02) $11.75 5.90% $ 557 1.98% 1.92% (0.05)% 13%
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Large Cap Plus Class C Shares
Six months ended 1/31/08 + (0.08) $15.55 (6.43)%* $ 92 2.29%** 1.92%** (0.23)%** 46%
Year ended 7/31/07 (0.07) $16.70 11.93% $ 125 2.03%## 1.92%## (0.02)% 141%
Year ended 7/31/06 (0.21) $14.98 5.07% $ 112 2.02% 1.92% 0.13% 126%
Year ended 7/31/05 (0.39) $14.46 13.73% $ 193 2.06% 1.92% 0.21% 102%
Year ended 7/31/04 (0.02) $13.08 11.38% $ 158 2.03% 1.92% (0.23)% 101%
Year ended 7/31/03 (0.03) $11.76 5.72% $ 29 1.99% 1.92% (0.04)% 13%
- ------------------------------------------------------------------------------------------------------------------------------------
See and notes to financial statements.
145
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
--------------------------- ----------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income Transactions Operations Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Institutional Shares
Six months ended 1/31/08 + $27.60 0.27+++ (1.47) (1.20) (0.28) --
Year ended 7/31/07 $24.24 0.50+++ 3.35 3.85 (0.49) --
Year ended 7/31/06 $23.46 0.42+++ 0.79 1.21 (0.43) --
Year ended 7/31/05 $21.01 0.44+++ 2.45 2.89 (0.44) --
Year ended 7/31/04 $18.93 0.29+++ 2.12 2.41 (0.33) --
Year ended 7/31/03 $17.42 0.24 1.51 1.75 (0.24) --
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Class A Shares
Six months ended 1/31/08 + $27.51 0.23+++ (1.47) (1.24) (0.24) --
Year ended 7/31/07 $24.16 0.43+++ 3.34 3.77 (0.42) --
Year ended 7/31/06 $23.38 0.36+++ 0.80 1.16 (0.38) --
Year ended 7/31/05 $20.94 0.37+++ 2.46 2.83 (0.39) --
Year ended 7/31/04 $18.87 0.25+++ 2.10 2.35 (0.28) --
Year ended 7/31/03 $17.38 0.20 1.50 1.70 (0.21) --
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Class B Shares
Six months ended 1/31/08 + $27.34 0.13+++ (1.46) (1.33) (0.13) --
Year ended 7/31/07 $24.01 0.22+++ 3.33 3.55 (0.22) --
Year ended 7/31/06 $23.24 0.18+++ 0.79 0.97 (0.20) --
Year ended 7/31/05 $20.83 0.20+++ 2.44 2.64 (0.23) --
Year ended 7/31/04 $18.78 0.09+++ 2.09 2.18 (0.13) --
Year ended 7/31/03 $17.32 0.07 1.50 1.57 (0.11) --
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Class C Shares
Six months ended 1/31/08 + $27.37 0.13+++ (1.46) (1.33) (0.13) --
Year ended 7/31/07 $24.03 0.22+++ 3.34 3.56 (0.22) --
Year ended 7/31/06 $23.26 0.18+++ 0.78 0.96 (0.19) --
Year ended 7/31/05 $20.84 0.20+++ 2.44 2.64 (0.22) --
Year ended 7/31/04 $18.78 0.09+++ 2.10 2.19 (0.13) --
Year ended 7/31/03 $17.33 0.08 1.49 1.57 (0.12) --
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Select Shares
Six months ended 1/31/08 + $27.59 0.25+++ (1.46) (1.21) (0.27) --
Year ended 7/31/07 $24.23 0.47+++ 3.35 3.82 (0.46) --
Year ended 7/31/06 $23.45 0.40+++ 0.80 1.20 (0.42) --
Year ended 7/31/05 $21.00 0.41+++ 2.47 2.88 (0.43) --
10/20/03(d) to 7/31/04 $19.86 0.22+++ 1.18 1.40 (0.26) --
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Preferred Shares
Six months ended 1/31/08 + $27.59 0.25+++ (1.47) (1.22) (0.26) --
Year ended 7/31/07 $24.23 0.45+++ 3.37 3.82 (0.46) --
Year ended 7/31/06 $23.45 0.39+++ 0.79 1.18 (0.40) --
Year ended 7/31/05 $21.01 0.43+++ 2.41 2.84 (0.40) --
10/20/03(d) to 7/31/04 $19.86 0.22+++ 1.18 1.40 (0.25) --
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Trust Shares
Six months ended 1/31/08 + $27.60 0.23+++ (1.47) (1.24) (0.24) --
Year ended 7/31/07 $24.23 0.43+++ 3.36 3.79 (0.42) --
Year ended 7/31/06 $23.45 0.36+++ 0.79 1.15 (0.37) --
Year ended 7/31/05 $21.01 0.37+++ 2.46 2.83 (0.39) --
10/20/03(d) to 7/31/04 $19.86 0.20+++ 1.18 1.38 (0.23) --
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
146
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
------------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Institutional Shares
Six months ended 1/31/08 + (0.28) $26.12 (4.41)%* $179,344 0.61%** 0.19%** 1.91%** 2%
Year ended 7/31/07 (0.49) $27.60 15.92% $193,180 0.61% 0.19% 1.84% 4%
Year ended 7/31/06 (0.43) $24.24 5.21% $184,177 0.60% 0.19% 1.75% 6%
Year ended 7/31/05 (0.44) $23.46 13.86% $168,279 0.62% 0.19% 1.97% 4%
Year ended 7/31/04 (0.33) $21.01 12.75% $193,734 0.58% 0.27% 1.43% 14%
Year ended 7/31/03 (0.24) $18.93 10.22% $583,530 0.58% 0.40% 1.42% 2%
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Class A Shares
Six months ended 1/31/08 + (0.24) $26.03 (4.55)%* $ 60,582 0.86%** 0.44%** 1.65%** 2%
Year ended 7/31/07 (0.42) $27.51 15.65% $ 65,640 0.86% 0.44% 1.59% 4%
Year ended 7/31/06 (0.38) $24.16 4.97% $ 65,204 0.85% 0.44% 1.52% 6%
Year ended 7/31/05 (0.39) $23.38 13.58% $ 70,261 0.87% 0.44% 1.69% 4%
Year ended 7/31/04 (0.28) $20.94 12.48% $ 72,944 0.86% 0.47% 1.19% 14%
Year ended 7/31/03 (0.21) $18.87 9.90% $ 33,402 0.83% 0.65% 1.16% 2%
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Class B Shares
Six months ended 1/31/08 + (0.13) $25.88 (4.90)%* $ 3,463 1.61%** 1.19%** 0.91%** 2%
Year ended 7/31/07 (0.22) $27.34 14.79% $ 3,961 1.61% 1.19% 0.84% 4%
Year ended 7/31/06 (0.20) $24.01 4.17% $ 4,229 1.60% 1.19% 0.76% 6%
Year ended 7/31/05 (0.23) $23.24 12.74% $ 4,399 1.63% 1.19% 0.93% 4%
Year ended 7/31/04 (0.13) $20.83 11.64% $ 3,776 1.60% 1.23% 0.44% 14%
Year ended 7/31/03 (0.11) $18.78 9.14% $ 2,409 1.57% 1.40% 0.40% 2%
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Class C Shares
Six months ended 1/31/08 + (0.13) $25.91 (4.90)%* $ 1,908 1.61%** 1.19%** 0.91%** 2%
Year ended 7/31/07 (0.22) $27.37 14.81% $ 2,223 1.61% 1.19% 0.83% 4%
Year ended 7/31/06 (0.19) $24.03 4.15% $ 1,998 1.60% 1.19% 0.77% 6%
Year ended 7/31/05 (0.22) $23.26 12.72% $ 2,301 1.63% 1.19% 0.90% 4%
Year ended 7/31/04 (0.13) $20.84 11.66% $ 1,990 1.60% 1.23% 0.44% 14%
Year ended 7/31/03 (0.12) $18.78 9.14% $ 1,711 1.57% 1.40% 0.39% 2%
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Select Shares
Six months ended 1/31/08 + (0.27) $26.11 (4.46)%* $ 12,549 0.69%** 0.27%** 1.81%** 2%
Year ended 7/31/07 (0.46) $27.59 15.83% $ 17,852 0.69% 0.27% 1.76% 4%
Year ended 7/31/06 (0.42) $24.23 5.13% $ 17,558 0.68% 0.27% 1.67% 6%
Year ended 7/31/05 (0.43) $23.45 13.79% $ 18,690 0.71% 0.27% 1.83% 4%
10/20/03(d) to 7/31/04 (0.26) $21.00 7.03%* $ 14,315 0.69%** 0.27%** 1.32%** 14%
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Preferred Shares
Six months ended 1/31/08 + (0.26) $26.11 (4.49)%* $ 62,796 0.76%** 0.34%** 1.76%** 2%
Year ended 7/31/07 (0.46) $27.59 15.76% $ 69,251 0.76% 0.34% 1.68% 4%
Year ended 7/31/06 (0.40) $24.23 5.06% $ 64,939 0.75% 0.34% 1.62% 6%
Year ended 7/31/05 (0.40) $23.45 13.62% $ 78,123 0.77% 0.34% 1.98% 4%
10/20/03(d) to 7/31/04 (0.25) $21.01 7.03%* $165,845 0.76%** 0.34%** 1.31%** 14%
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Index Trust Shares
Six months ended 1/31/08 + (0.24) $26.12 (4.54)%* $ 61,547 0.86%** 0.44%** 1.66%** 2%
Year ended 7/31/07 (0.42) $27.60 15.69% $ 68,661 0.86% 0.44% 1.59% 4%
Year ended 7/31/06 (0.37) $24.23 4.95% $ 67,747 0.85% 0.44% 1.52% 6%
Year ended 7/31/05 (0.39) $23.45 13.53% $ 76,295 0.87% 0.44% 1.69% 4%
10/20/03(d) to 7/31/04 (0.23) $21.01 6.95%* $ 80,759 0.86%** 0.44%** 1.22%** 14%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
147
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
--------------------------- ----------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income Transactions Operations Income Gains
- -------------------------------------------------------------------------------------------------------------------------
Balanced Institutional Shares
Six months ended 1/31/08 + $13.49 0.14+++ 0.26 0.40 (0.29) --
Year ended 7/31/07 $12.35 0.41+++@ 1.09 1.50 (0.36) --
Year ended 7/31/06 $12.79 0.25 (0.44) (0.19) (0.25) --
Year ended 7/31/05 $12.00 0.24 0.80 1.04 (0.25) --
Year ended 7/31/04 $11.38 0.13 0.64 0.77 (0.15) --
Year ended 7/31/03 $10.91 0.15 0.49 0.64 (0.17) --
- -------------------------------------------------------------------------------------------------------------------------
Balanced Fund Class A Shares
Six months ended 1/31/08 + $13.41 0.12+++ 0.26 0.38 (0.27) --
Year ended 7/31/07 $12.28 0.37+++@ 1.08 1.45 (0.32) --
Year ended 7/31/06 $12.71 0.22 (0.43) (0.21) (0.22) --
Year ended 7/31/05 $11.93 0.21 0.79 1.00 (0.22) --
Year ended 7/31/04 $11.32 0.10 0.63 0.73 (0.12) --
Year ended 7/31/03 $10.86 0.13 0.48 0.61 (0.15) --
- -------------------------------------------------------------------------------------------------------------------------
Balanced Fund Class B Shares
Six months ended 1/31/08 + $13.25 0.07+++ 0.26 0.33 (0.22) --
Year ended 7/31/07 $12.13 0.27+++@ 1.07 1.34 (0.22) --
Year ended 7/31/06 $12.57 0.12 (0.44) (0.32) (0.12) --
Year ended 7/31/05 $11.80 0.11 0.79 0.90 (0.13) --
Year ended 7/31/04 $11.19 0.01 0.63 0.64 (0.03) --
Year ended 7/31/03 $10.75 0.04 0.48 0.52 (0.08) --
- -------------------------------------------------------------------------------------------------------------------------
Balanced Fund Class C Shares
Six months ended 1/31/08 + $13.23 0.07+++ 0.27 0.34 (0.22) --
Year ended 7/31/07 $12.11 0.27+++@ 1.07 1.34 (0.22) --
Year ended 7/31/06 $12.55 0.12 (0.44) (0.32) (0.12) --
Year ended 7/31/05 $11.78 0.11 0.79 0.90 (0.13) --
Year ended 7/31/04 $11.17 0.01 0.63 0.64 (0.03) --
Year ended 7/31/03 $10.73 0.04 0.48 0.52 (0.08) --
- -------------------------------------------------------------------------------------------------------------------------
International Equity Institutional Shares
Six months ended 1/31/08 + $15.55 0.07+++ (0.73) (0.66) (0.46) (1.00)
Year ended 7/31/07 $12.83 0.18+++@ 2.92 3.10 (0.11) (0.27)
Year ended 7/31/06 $10.79 0.15+++ 2.37 2.52 (0.20) (0.28)
Year ended 7/31/05 $ 9.32 0.13 1.54 1.67 (0.20) --
Year ended 7/31/04 $ 7.79 0.06+++ 1.61 1.67 (0.14) --
Year ended 7/31/03 $ 7.65 0.06 0.12 0.18 (0.04) --
- -------------------------------------------------------------------------------------------------------------------------
International Equity Class A Shares
Six months ended 1/31/08 + $15.54 0.04+++ (0.72) (0.68) (0.43) (1.00)
Year ended 7/31/07 $12.84 0.15+++@ 2.92 3.07 (0.10) (0.27)
Year ended 7/31/06 $10.80 0.13+++ 2.36 2.49 (0.17) (0.28)
Year ended 7/31/05 $ 9.33 0.10 1.54 1.64 (0.17) --
Year ended 7/31/04 $ 7.81 0.05+++ 1.59 1.64 (0.12) --
Year ended 7/31/03 $ 7.64 0.07 0.12 0.19 (0.02) --
- -------------------------------------------------------------------------------------------------------------------------
International Equity Class B Shares
Six months ended 1/31/08 + $15.21 -- (0.71) (0.71) (0.32) (1.00)
Year ended 7/31/07 $12.64 0.04+++@ 2.86 2.90 (0.06) (0.27)
Year ended 7/31/06 $10.66 0.04+++ 2.32 2.36 (0.10) (0.28)
Year ended 7/31/05 $ 9.23 0.02 1.52 1.54 (0.11) --
Year ended 7/31/04 $ 7.71 (0.02)+++ 1.59 1.57 (0.05) --
Year ended 7/31/03 $ 7.60 --^ 0.11 0.11 -- --
- -------------------------------------------------------------------------------------------------------------------------
International Equity Class C Shares
Six months ended 1/31/08 + $14.81 (0.01)+++ (0.68) (0.71) (0.32) (1.00)
Year ended 7/31/07 $12.31 0.02+++@ 2.81 2.83 (0.06) (0.27)
Year ended 7/31/06 $10.39 0.03+++ 2.28 2.31 (0.11) (0.28)
Year ended 7/31/05 $ 8.99 0.02 1.49 1.51 (0.11) --
Year ended 7/31/04 $ 7.50 (0.02)+++ 1.54 1.52 (0.03) --
Year ended 7/31/03 $ 7.40 0.02 0.08 0.10 -- --
- -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
148
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Balanced Institutional Shares
Six months ended 1/31/08 + (0.29) $13.60 2.86%* $ 12,926 1.45%** 0.96%** 1.93%** 19%
Year ended 7/31/07 (0.36) $13.49 12.33%@ $ 23,329 1.34% 0.96% 2.84% 59%
Year ended 7/31/06 (0.25) $12.35 (1.51)% $ 35,740 1.22% 0.97% 1.86% 191%
Year ended 7/31/05 (0.25) $12.79 8.73% $ 59,868 1.18% 1.02% 1.89% 146%
Year ended 7/31/04 (0.15) $12.00 6.76% $ 98,282 1.13% 1.13% 1.07% 166%
Year ended 7/31/03 (0.17) $11.38 5.94% $177,052 1.12% 1.10% 1.39% 133%
- ------------------------------------------------------------------------------------------------------------------------------------
Balanced Fund Class A Shares
Six months ended 1/31/08 + (0.27) $13.52 2.72%* $ 18,219 1.71%** 1.21%** 1.71%** 19%
Year ended 7/31/07 (0.32) $13.41 12.02%@ $ 26,863 1.59% 1.21% 2.56% 59%
Year ended 7/31/06 (0.22) $12.28 (1.71)% $ 37,286 1.47% 1.22% 1.61% 191%
Year ended 7/31/05 (0.22) $12.71 8.41% $ 59,274 1.44% 1.27% 1.63% 146%
Year ended 7/31/04 (0.12) $11.93 6.52% $ 74,231 1.38% 1.38% 0.79% 166%
Year ended 7/31/03 (0.15) $11.32 5.57% $ 73,287 1.37% 1.35% 1.14% 133%
- ------------------------------------------------------------------------------------------------------------------------------------
Balanced Fund Class B Shares
Six months ended 1/31/08 + (0.22) $13.36 2.36%* $ 5,431 2.47%** 1.96%** 0.99%** 19%
Year ended 7/31/07 (0.22) $13.25 11.23%@ $ 5,923 2.33% 1.96% 1.80% 59%
Year ended 7/31/06 (0.12) $12.13 (2.57)% $ 7,536 2.22% 1.97% 0.86% 191%
Year ended 7/31/05 (0.13) $12.57 7.61% $ 10,957 2.19% 2.02% 0.86% 146%
Year ended 7/31/04 (0.03) $11.80 5.72% $ 13,117 2.13% 2.13% 0.05% 166%
Year ended 7/31/03 (0.08) $11.19 4.87% $ 13,972 2.12% 2.10% 0.39% 133%
- ------------------------------------------------------------------------------------------------------------------------------------
Balanced Fund Class C Shares
Six months ended 1/31/08 + (0.22) $13.35 2.35%* $ 1,043 2.47%** 1.96%** 0.99%** 19%
Year ended 7/31/07 (0.22) $13.23 11.26%@ $ 1,201 2.33% 1.96% 1.82% 59%
Year ended 7/31/06 (0.12) $12.11 (2.56)% $ 1,669 2.21% 1.97% 0.86% 191%
Year ended 7/31/05 (0.13) $12.55 7.62% $ 4,046 2.19% 2.02% 0.85% 146%
Year ended 7/31/04 (0.03) $11.78 5.71% $ 4,731 2.13% 2.13% 0.05% 166%
Year ended 7/31/03 (0.08) $11.17 4.90% $ 5,747 2.12% 2.10% 0.38% 133%
- ------------------------------------------------------------------------------------------------------------------------------------
International Equity Institutional Shares
Six months ended 1/31/08 + (1.46) $13.43 (5.16)%* $464,735 1.34%** 1.30%** 0.93%** 86%
Year ended 7/31/07 (0.38) $15.55 24.57%@ $469,183 1.36% 1.35% 1.29% 20%
Year ended 7/31/06 (0.48) $12.83 23.86% $434,572 1.37% 1.35% 1.24% 23%
Year ended 7/31/05 (0.20) $10.79 17.99% $282,476 1.39% 1.35% 1.15% 21%
Year ended 7/31/04 (0.14) $ 9.32 21.56% $324,852 1.42% 1.36% 0.61% 50%
Year ended 7/31/03 (0.04) $ 7.79 2.47% $159,160 1.45% 1.42% 0.96% 44%
- ------------------------------------------------------------------------------------------------------------------------------------
International Equity Class A Shares
Six months ended 1/31/08 + (1.43) $13.43 (5.36)%* $ 26,722 1.59%** 1.55%** 0.46%** 86%
Year ended 7/31/07 (0.37) $15.54 24.35%@ $ 21,533 1.61% 1.60% 1.06% 20%
Year ended 7/31/06 (0.45) $12.84 23.53% $ 27,725 1.62% 1.60% 1.03% 23%
Year ended 7/31/05 (0.17) $10.80 17.79% $ 20,509 1.64% 1.60% 0.88% 21%
Year ended 7/31/04 (0.12) $ 9.33 21.11% $ 22,999 1.67% 1.61% 0.51% 50%
Year ended 7/31/03 (0.02) $ 7.81 2.52% $ 5,489 1.69% 1.67% 0.88% 44%
- ------------------------------------------------------------------------------------------------------------------------------------
International Equity Class B Shares
Six months ended 1/31/08 + (1.32) $13.18 (5.65)%* $ 2,377 2.34%** 2.30%** (0.04)%** 86%
Year ended 7/31/07 (0.33) $15.21 23.36%@ $ 2,677 2.35% 2.35% 0.32% 20%
Year ended 7/31/06 (0.38) $12.64 22.59% $ 2,060 2.37% 2.35% 0.32% 23%
Year ended 7/31/05 (0.11) $10.66 16.76% $ 1,280 2.39% 2.35% 0.23% 21%
Year ended 7/31/04 (0.05) $ 9.23 20.43% $ 793 2.42% 2.36% (0.21)% 50%
Year ended 7/31/03 -- $ 7.71 1.45% $ 340 2.45% 2.42% 0.01% 44%
- ------------------------------------------------------------------------------------------------------------------------------------
International Equity Class C Shares
Six months ended 1/31/08 + (1.32) $12.80 (5.66)%* $ 939 2.34%** 2.30%** (0.09)%** 86%
Year ended 7/31/07 (0.33) $14.81 23.40%@ $ 878 2.35% 2.35% 0.16% 20%
Year ended 7/31/06 (0.39) $12.31 22.61% $ 1,139 2.37% 2.35% 0.29% 23%
Year ended 7/31/05 (0.11) $10.39 16.83% $ 962 2.39% 2.35% 0.26% 21%
Year ended 7/31/04 (0.03) $ 8.99 20.32% $ 555 2.42% 2.36% (0.22)% 50%
Year ended 7/31/03 -- $ 7.50 1.35% $ 304 2.44% 2.39% 0.64% 44%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
149
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
------------------------------ ----------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- --------------------------------------------------------------------------------------------------------------------------------
Strategic Income Institutional Shares
Six months ended 1/31/08 + $11.18 0.28+++ (0.14) 0.14 (0.31) (0.33)
Year ended 7/31/07 $11.28 0.55+++ 0.01 0.56 (0.55) (0.11)
Year ended 7/31/06 $11.54 0.52+++ (0.23) 0.29 (0.52) (0.03)
Year ended 7/31/05 $11.15 0.51 0.39 0.90 (0.50) (0.01)
Year ended 7/31/04 $10.91 0.51 0.25 0.76 (0.52) --
Year ended 7/31/03 $10.63 0.58 0.25 0.83 (0.55) --
- --------------------------------------------------------------------------------------------------------------------------------
Strategic Income Class A Shares
Six months ended 1/31/08 + $11.15 0.28+++ (0.15) 0.13 (0.30) (0.33)
Year ended 7/31/07 $11.25 0.52+++ 0.02 0.54 (0.52) (0.12)
Year ended 7/31/06 $11.51 0.48+++ (0.22) 0.26 (0.49) (0.03)
Year ended 7/31/05 $11.12 0.49 0.38 0.87 (0.47) (0.01)
4/1/04(d) to 7/31/04 $11.65 0.17 (0.54) (0.37) (0.16) --
- --------------------------------------------------------------------------------------------------------------------------------
Strategic Income Class B Shares
Six months ended 1/31/08 + $11.15 0.22+++ (0.13) 0.09 (0.26) (0.33)
Year ended 7/31/07 $11.25 0.43+++ 0.02 0.45 (0.44) (0.11)
Year ended 7/31/06 $11.51 0.40+++ (0.23) 0.17 (0.40) (0.03)
Year ended 7/31/05 $11.12 0.40 0.39 0.79 (0.39) (0.01)
4/1/04(d) to 7/31/04 $11.65 0.15 (0.54) (0.39) (0.14) --
- --------------------------------------------------------------------------------------------------------------------------------
Strategic Income Class C Shares
Six months ended 1/31/08 + $11.07 0.22+++ (0.13) 0.09 (0.26) (0.33)
Year ended 7/31/07 $11.17 0.43+++ 0.02 0.45 (0.44) (0.11)
Year ended 7/31/06 $11.43 0.40+++ (0.23) 0.17 (0.40) (0.03)
Year ended 7/31/05 $11.05 0.39 0.39 0.78 (0.39) (0.01)
Year ended 7/31/04 $10.82 0.39 0.25 0.64 (0.41) --
Year ended 7/31/03 $10.55 0.47 0.24 0.71 (0.44) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Institutional Shares
Six months ended 1/31/08 + $16.58 0.15#+++ (0.69)# (0.54) (0.49) (1.16)
Year ended 7/31/07 $14.58 0.14#+++ 2.39# 2.53 (0.12) (0.41)
Year ended 7/31/06 $14.36 0.21# 0.52# 0.73 (0.20) (0.31)
Year ended 7/31/05 $12.49 0.16# 1.94# 2.10 (0.15) (0.08)
Year ended 7/31/04 $11.35 0.14# 1.31# 1.45 (0.13) (0.18)
8/1/02(d) to 7/31/03 $10.00 0.04# 1.35# 1.39 (0.04) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Class A Shares
Six months ended 1/31/08 + $16.51 0.15#+++ (0.72)# (0.57) (0.46) (1.16)
Year ended 7/31/07 $14.53 0.10#+++ 2.38# 2.48 (0.09) (0.41)
Year ended 7/31/06 $14.32 0.17# 0.51# 0.68 (0.16) (0.31)
Year ended 7/31/05 $12.45 0.12# 1.95# 2.07 (0.12) (0.08)
Year ended 7/31/04 $11.33 0.11# 1.30# 1.41 (0.11) (0.18)
8/1/02(d) to 7/31/03 $10.00 0.02# 1.33# 1.35 (0.02) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Class B Shares
Six months ended 1/31/08 + $16.11 0.07#+++ (0.67)# (0.60) (0.37) (1.16)
Year ended 7/31/07 $14.24 (0.02)#+++ 2.33# 2.31 (0.02) (0.42)
Year ended 7/31/06 $14.08 0.06# 0.51# 0.57 (0.10) (0.31)
Year ended 7/31/05 $12.30 0.03# 1.90# 1.93 (0.07) (0.08)
Year ended 7/31/04 $11.26 0.05# 1.27# 1.32 (0.10) (0.18)
8/1/02(d) to 7/31/03 $10.00 (0.02)# 1.28# 1.26 --^ --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Class C Shares
Six months ended 1/31/08 + $16.11 0.07#+++ (0.69)# (0.62) (0.37) (1.16)
Year ended 7/31/07 $14.24 (0.04)#+++ 2.35# 2.31 (0.03) (0.41)
Year ended 7/31/06 $14.08 0.06# 0.51# 0.57 (0.10) (0.31)
Year ended 7/31/05 $12.30 0.03# 1.90# 1.93 (0.07) (0.08)
Year ended 7/31/04 $11.26 0.03# 1.28# 1.31 (0.09) (0.18)
8/1/02(d) to 7/31/03 $10.00 (0.01)# 1.28# 1.27 (0.01) --
- --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
150
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income/(Loss) Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Income Institutional Shares
Six months ended 1/31/08 + (0.64) $10.68 1.38%* $ 95,669 1.36%** 0.96%** 5.09%** 16%
Year ended 7/31/07 (0.66) $11.18 4.97% $116,454 1.34% 1.06% 4.75% 18%
Year ended 7/31/06 (0.55) $11.28 2.61% $107,130 1.34% 1.31% 4.56% 8%
Year ended 7/31/05 (0.51) $11.54 8.21% $ 97,921 1.36% 1.36% 4.47% 17%
Year ended 7/31/04 (0.52) $11.15 7.04% $ 90,995 1.33% 1.33% 4.64% 36%
Year ended 7/31/03 (0.55) $10.91 7.89% $ 67,649 1.35% 1.35% 5.25% 38%
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Income Class A Shares
Six months ended 1/31/08 + (0.63) $10.65 1.26%* $ 19,471 1.61%** 1.20%** 5.14%** 16%
Year ended 7/31/07 (0.64) $11.15 4.72% $ 4,904 1.59% 1.31% 4.49% 18%
Year ended 7/31/06 (0.52) $11.25 2.36% $ 4,429 1.59% 1.56% 4.30% 8%
Year ended 7/31/05 (0.48) $11.51 7.96% $ 4,423 1.62% 1.62% 4.25% 17%
4/1/04(d) to 7/31/04 (0.16) $11.12 (3.15)%* $ 954 1.63%** 1.63%** 5.02%** 36%
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Income Class B Shares
Six months ended 1/31/08 + (0.59) $10.65 0.87%* $ 1,244 2.36%** 1.96%** 4.06%** 16%
Year ended 7/31/07 (0.55) $11.15 3.94% $ 1,528 2.34% 2.05% 3.76% 18%
Year ended 7/31/06 (0.43) $11.25 1.60% $ 1,588 2.34% 2.31% 3.57% 8%
Year ended 7/31/05 (0.40) $11.51 7.16% $ 1,909 2.37% 2.37% 3.49% 17%
4/1/04(d) to 7/31/04 (0.14) $11.12 (3.36)%* $ 389 2.37%** 2.37%** 4.27%** 36%
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Income Class C Shares
Six months ended 1/31/08 + (0.59) $10.57 0.88%* $ 13,024 2.36%** 1.96%** 4.07%** 16%
Year ended 7/31/07 (0.55) $11.07 3.98% $ 15,676 2.34% 2.06% 3.75% 18%
Year ended 7/31/06 (0.43) $11.17 1.62% $ 20,019 2.34% 2.32% 3.53% 8%
Year ended 7/31/05 (0.40) $11.43 7.12% $ 29,176 2.35% 2.35% 3.47% 17%
Year ended 7/31/04 (0.41) $11.05 6.07% $ 39,298 2.33% 2.33% 3.62% 36%
Year ended 7/31/03 (0.44) $10.82 6.82% $ 37,810 2.35% 2.32% 4.35% 38%
- ---------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Institutional Shares
Six months ended 1/31/08 + (1.65) $14.39 (3.98)%* $110,320 0.50%** 0.08%** 1.82%** 9%
Year ended 7/31/07 (0.53) $16.58 17.59% $119,437 0.49% 0.08% 0.87% 14%
Year ended 7/31/06 (0.51) $14.58 5.13% $101,365 0.48% 0.08% 1.38% 14%
Year ended 7/31/05 (0.23) $14.36 16.91% $ 70,072 0.47% 0.08% 1.15% 35%
Year ended 7/31/04 (0.31) $12.49 12.83% $ 52,085 0.51% 0.08% 1.09% 22%
8/1/02(d) to 7/31/03 (0.04) $11.35 13.92%* $ 32,421 0.78%** 0.08%** 0.45%** 79%
- ---------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Class A Shares
Six months ended 1/31/08 + (1.62) $14.32 (4.18)%* $ 53,200 0.75%** 0.33%** 1.79%** 9%
Year ended 7/31/07 (0.50) $16.51 17.29% $ 57,421 0.73% 0.33% 0.62% 14%
Year ended 7/31/06 (0.47) $14.53 4.80% $ 50,416 0.72% 0.33% 1.15% 14%
Year ended 7/31/05 (0.20) $14.32 16.59% $ 47,172 0.72% 0.33% 0.91% 35%
Year ended 7/31/04 (0.29) $12.45 12.49% $ 38,249 0.76% 0.33% 0.80% 22%
8/1/02(d) to 7/31/03 (0.02) $11.33 13.57%* $ 10,090 1.24%** 0.33%** 0.16%** 79%
- ---------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Class B Shares
Six months ended 1/31/08 + (1.53) $13.98 (4.53)%* $ 15,846 1.50%** 1.08%** 0.93%** 9%
Year ended 7/31/07 (0.44) $16.11 16.44% $ 18,547 1.49% 1.08% (0.13)% 14%
Year ended 7/31/06 (0.41) $14.24 4.10% $ 16,926 1.47% 1.08% 0.39% 14%
Year ended 7/31/05 (0.15) $14.08 15.73% $ 16,203 1.47% 1.08% 0.15% 35%
Year ended 7/31/04 (0.28) $12.30 11.70% $ 12,106 1.51% 1.08% 0.03% 22%
8/1/02(d) to 7/31/03 -- $11.26 12.65%* $ 3,587 2.06%** 1.08%** (0.54)%** 79%
- ---------------------------------------------------------------------------------------------------------------------------------
LifeModel Aggressive(SM) Class C Shares
Six months ended 1/31/08 + (1.53) $13.96 (4.64)%* $ 2,714 1.50%** 1.08%** 0.90%** 9%
Year ended 7/31/07 (0.44) $16.11 16.45% $ 3,016 1.49% 1.08% (0.24)% 14%
Year ended 7/31/06 (0.41) $14.24 4.11% $ 2,661 1.47% 1.08% 0.37% 14%
Year ended 7/31/05 (0.15) $14.08 15.80% $ 2,164 1.47% 1.08% 0.14% 35%
Year ended 7/31/04 (0.27) $12.30 11.67% $ 1,916 1.51% 1.08% 0.06% 22%
8/1/02(d) to 7/31/03 (0.01) $11.26 12.74%* $ 532 2.20%** 1.08%** (0.62)%** 79%
- ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
151
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
------------------------------ ---------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investments from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Institutional Shares
Six months ended 1/31/08 + $15.44 0.19#+++ (0.50)# (0.31) (0.43) (1.11)
Year ended 7/31/07 $13.98 0.25#+++ 1.84# 2.09 (0.26) (0.37)
Year ended 7/31/06 $13.91 0.28# 0.34# 0.62 (0.28) (0.27)
Year ended 7/31/05 $12.48 0.22# 1.50# 1.72 (0.21) (0.08)
Year ended 7/31/04 $11.59 0.19# 1.03# 1.22 (0.19) (0.14)
8/1/02(d) to 7/31/03 $10.00 0.09# 1.58# 1.67 (0.08) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Class A Shares
Six months ended 1/31/08 + $15.42 0.18#+++ (0.52)# (0.34) (0.41) (1.11)
Year ended 7/31/07 $13.96 0.21#+++ 1.83# 2.04 (0.22) (0.36)
Year ended 7/31/06 $13.89 0.26# 0.33# 0.59 (0.25) (0.27)
Year ended 7/31/05 $12.47 0.19# 1.49# 1.68 (0.18) (0.08)
Year ended 7/31/04 $11.58 0.16# 1.04# 1.20 (0.17) (0.14)
8/1/02(d) to 7/31/03 $10.00 0.07# 1.58# 1.65 (0.07) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Class B Shares
Six months ended 1/31/08 + $15.34 0.13#+++ (0.52)# (0.39) (0.35) (1.11)
Year ended 7/31/07 $13.90 0.10#+++ 1.82# 1.92 (0.11) (0.37)
Year ended 7/31/06 $13.83 0.15# 0.34# 0.49 (0.15) (0.27)
Year ended 7/31/05 $12.42 0.09# 1.48# 1.57 (0.08) (0.08)
Year ended 7/31/04 $11.55 0.07# 1.03# 1.10 (0.09) (0.14)
8/1/02(d) to 7/31/03 $10.00 0.02# 1.55# 1.57 (0.02) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Class C Shares
Six months ended 1/31/08 + $15.34 0.15#+++ (0.54)# (0.39) (0.35) (1.11)
Year ended 7/31/07 $13.89 0.10#+++ 1.83# 1.93 (0.11) (0.37)
Year ended 7/31/06 $13.83 0.15# 0.33# 0.48 (0.15) (0.27)
Year ended 7/31/05 $12.41 0.09# 1.49# 1.58 (0.08) (0.08)
Year ended 7/31/04 $11.55 0.07# 1.02# 1.09 (0.09) (0.14)
8/1/02(d) to 7/31/03 $10.00 0.02# 1.55# 1.57 (0.02) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Institutional Shares
Six months ended 1/31/08 + $13.34 0.21#+++ (0.31)# (0.10) (0.37) (0.76)
Year ended 7/31/07 $12.43 0.33#+++ 1.21# 1.54 (0.33) (0.30)
Year ended 7/31/06 $12.52 0.33# 0.15# 0.48 (0.33) (0.24)
Year ended 7/31/05 $11.57 0.27# 0.97# 1.24 (0.26) (0.03)
Year ended 7/31/04 $10.93 0.21# 0.76# 0.97 (0.21) (0.12)
8/1/02(d) to 7/31/03 $10.00 0.14# 0.92# 1.06 (0.13) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Class A Shares
Six months ended 1/31/08 + $13.32 0.20#+++ (0.31)# (0.11) (0.35) (0.76)
Year ended 7/31/07 $12.41 0.29#+++ 1.22# 1.51 (0.30) (0.30)
Year ended 7/31/06 $12.50 0.30# 0.15# 0.45 (0.30) (0.24)
Year ended 7/31/05 $11.56 0.24# 0.96# 1.20 (0.23) (0.03)
Year ended 7/31/04 $10.93 0.19# 0.74# 0.93 (0.18) (0.12)
8/1/02(d) to 7/31/03 $10.00 0.12# 0.92# 1.04 (0.11) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Class B Shares
Six months ended 1/31/08 + $13.25 0.15#+++ (0.32)# (0.17) (0.29) (0.76)
Year ended 7/31/07 $12.35 0.19#+++ 1.21# 1.40 (0.20) (0.30)
Year ended 7/31/06 $12.45 0.21# 0.14# 0.35 (0.21) (0.24)
Year ended 7/31/05 $11.51 0.14# 0.97# 1.11 (0.14) (0.03)
Year ended 7/31/04 $10.89 0.12# 0.73# 0.85 (0.11) (0.12)
8/1/02(d) to 7/31/03 $10.00 0.06# 0.89# 0.95 (0.06) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Class C Shares
Six months ended 1/31/08 + $13.26 0.15#+++ (0.32)# (0.17) (0.29) (0.76)
Year ended 7/31/07 $12.36 0.19#+++ 1.21# 1.40 (0.20) (0.30)
Year ended 7/31/06 $12.45 0.21# 0.14# 0.35 (0.20) (0.24)
Year ended 7/31/05 $11.51 0.15# 0.96# 1.11 (0.14) (0.03)
Year ended 7/31/04 $10.90 0.12# 0.73# 0.85 (0.12) (0.12)
8/1/02(d) to 7/31/03 $10.00 0.06# 0.90# 0.96 (0.06) --
- --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
152
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income/(Loss) Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Institutional Shares
Six months ended 1/31/08 + (1.54) $13.59 (2.58)%* $138,828 0.50%** 0.08%** 2.47%** 11%
Year ended 7/31/07 (0.63) $15.44 15.16% $146,973 0.47% 0.08% 1.68% 20%
Year ended 7/31/06 (0.55) $13.98 4.60% $135,542 0.45% 0.08% 2.09% 19%
Year ended 7/31/05 (0.29) $13.91 13.87% $110,379 0.44% 0.08% 1.62% 35%
Year ended 7/31/04 (0.33) $12.48 10.54% $ 82,264 0.45% 0.08% 1.56% 16%
8/1/02(d) to 7/31/03 (0.08) $11.59 16.78%* $ 62,677 0.54%** 0.08%** 1.15%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Class A Shares
Six months ended 1/31/08 + (1.52) $13.56 (2.72)%* $116,772 0.75%** 0.33%** 2.35%** 11%
Year ended 7/31/07 (0.58) $15.42 14.82% $127,824 0.72% 0.33% 1.42% 20%
Year ended 7/31/06 (0.52) $13.96 4.36% $128,564 0.70% 0.33% 1.86% 19%
Year ended 7/31/05 (0.26) $13.89 13.53% $125,130 0.69% 0.33% 1.38% 35%
Year ended 7/31/04 (0.31) $12.47 10.32% $ 94,739 0.70% 0.33% 1.32% 16%
8/1/02(d) to 7/31/03 (0.07) $11.58 16.51%* $ 33,806 0.90%** 0.33%** 0.86%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Class B Shares
Six months ended 1/31/08 + (1.46) $13.49 (3.12)%* $ 49,859 1.50%** 1.08%** 1.69%** 11%
Year ended 7/31/07 (0.48) $15.34 13.97% $ 56,679 1.47% 1.08% 0.68% 20%
Year ended 7/31/06 (0.42) $13.90 3.63% $ 53,395 1.45% 1.08% 1.10% 19%
Year ended 7/31/05 (0.16) $13.83 12.68% $ 50,000 1.44% 1.08% 0.62% 35%
Year ended 7/31/04 (0.23) $12.42 9.47% $ 39,636 1.45% 1.08% 0.53% 16%
8/1/02(d) to 7/31/03 (0.02) $11.55 15.70%* $ 12,606 1.60%** 1.08%** 0.10%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Aggressive(SM) Class C Shares
Six months ended 1/31/08 + (1.46) $13.49 (3.06)%* $ 7,325 1.50%** 1.08%** 1.92%** 11%
Year ended 7/31/07 (0.48) $15.34 13.98% $ 9,012 1.47% 1.08% 0.68% 20%
Year ended 7/31/06 (0.42) $13.89 3.53% $ 8,196 1.45% 1.08% 1.11% 19%
Year ended 7/31/05 (0.16) $13.83 12.75% $ 9,034 1.44% 1.08% 0.62% 35%
Year ended 7/31/04 (0.23) $12.41 9.45% $ 8,046 1.45% 1.08% 0.48% 16%
8/1/02(d) to 7/31/03 (0.02) $11.55 15.71%* $ 1,386 1.61%** 1.08%** 0.06%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Institutional Shares
Six months ended 1/31/08 + (1.13) $12.11 (1.12)%* $350,349 0.45%** 0.08%** 3.15%** 11%
Year ended 7/31/07 (0.63) $13.34 12.60% $369,880 0.44% 0.08% 2.48% 18%
Year ended 7/31/06 (0.57) $12.43 3.90% $369,903 0.43% 0.08% 2.70% 30%
Year ended 7/31/05 (0.29) $12.52 10.79% $340,163 0.42% 0.08% 2.17% 41%
Year ended 7/31/04 (0.33) $11.57 8.84% $315,055 0.43% 0.08% 1.76% 14%
8/1/02(d) to 7/31/03 (0.13) $10.93 10.66%* $ 71,538 0.52%** 0.08%** 1.82%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Class A Shares
Six months ended 1/31/08 + (1.11) $12.10 (1.18)%* $ 85,954 0.70%** 0.33%** 3.03%** 11%
Year ended 7/31/07 (0.60) $13.32 12.32% $ 92,719 0.69% 0.33% 2.23% 18%
Year ended 7/31/06 (0.54) $12.41 3.65% $100,588 0.68% 0.33% 2.46% 30%
Year ended 7/31/05 (0.26) $12.50 10.43% $106,044 0.67% 0.33% 1.92% 41%
Year ended 7/31/04 (0.30) $11.56 8.53% $ 98,293 0.68% 0.33% 1.79% 14%
8/1/02(d) to 7/31/03 (0.11) $10.93 10.48%* $ 28,991 0.84%** 0.33%** 1.52%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Class B Shares
Six months ended 1/31/08 + (1.05) $12.03 (1.59)%* $ 39,029 1.45%** 1.08%** 2.30%** 11%
Year ended 7/31/07 (0.50) $13.25 11.47% $ 43,013 1.44% 1.08% 1.48% 18%
Year ended 7/31/06 (0.45) $12.35 2.82% $ 43,234 1.43% 1.08% 1.70% 30%
Year ended 7/31/05 (0.17) $12.45 9.58% $ 44,111 1.42% 1.08% 1.17% 41%
Year ended 7/31/04 (0.23) $11.51 7.80% $ 36,778 1.43% 1.08% 1.05% 14%
8/1/02(d) to 7/31/03 (0.06) $10.89 9.58%* $ 14,631 1.63%** 1.08%** 0.74%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderate(SM) Class C Shares
Six months ended 1/31/08 + (1.05) $12.04 (1.59)%* $ 5,199 1.45%** 1.08%** 2.27%** 11%
Year ended 7/31/07 (0.50) $13.26 11.46% $ 6,158 1.44% 1.08% 1.48% 18%
Year ended 7/31/06 (0.44) $12.36 2.88% $ 6,495 1.43% 1.08% 1.70% 30%
Year ended 7/31/05 (0.17) $12.45 9.64% $ 7,912 1.42% 1.08% 1.16% 41%
Year ended 7/31/04 (0.24) $11.51 7.76% $ 7,442 1.43% 1.08% 1.04% 14%
8/1/02(d) to 7/31/03 (0.06) $10.90 9.67%* $ 1,335 1.66%** 1.08%** 0.70%** 55%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
153
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
------------------------------ ---------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investment from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Institutional Shares
Six months ended 1/31/08 + $11.95 0.21#+++ (0.24)# (0.03) (0.32) (0.66)
Year ended 7/31/07 $11.36 0.34#+++ 0.93# 1.27 (0.35) (0.33)
Year ended 7/31/06 $11.59 0.34# 0.04# 0.38 (0.34) (0.27)
Year ended 7/31/05 $10.95 0.27# 0.73# 1.00 (0.27) (0.09)
Year ended 7/31/04 $10.62 0.27# 0.51# 0.78 (0.25) (0.20)
8/1/02(d) to 7/31/03 $10.00 0.18# 0.60# 0.78 (0.16) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Class A Shares
Six months ended 1/31/08 + $11.93 0.18#+++ (0.22)# (0.04) (0.30) (0.66)
Year ended 7/31/07 $11.35 0.31#+++ 0.92# 1.23 (0.32) (0.33)
Year ended 7/31/06 $11.58 0.32# 0.03# 0.35 (0.31) (0.27)
Year ended 7/31/05 $10.93 0.25# 0.73# 0.98 (0.24) (0.09)
Year ended 7/31/04 $10.60 0.22# 0.53# 0.75 (0.22) (0.20)
8/1/02(d) to 7/31/03 $10.00 0.15# 0.59# 0.74 (0.14) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Class B Shares
Six months ended 1/31/08 + $11.88 0.15#+++ (0.23)# (0.08) (0.25) (0.66)
Year ended 7/31/07 $11.30 0.22#+++ 0.92# 1.14 (0.23) (0.33)
Year ended 7/31/06 $11.54 0.24# 0.02# 0.26 (0.23) (0.27)
Year ended 7/31/05 $10.90 0.17# 0.72# 0.89 (0.16) (0.09)
Year ended 7/31/04 $10.58 0.14# 0.53# 0.67 (0.15) (0.20)
8/1/02(d) to 7/31/03 $10.00 0.10# 0.58# 0.68 (0.10) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Class C Shares
Six months ended 1/31/08 + $11.89 0.15#+++ (0.22)# (0.07) (0.26) (0.66)
Year ended 7/31/07 $11.32 0.22#+++ 0.91# 1.13 (0.23) (0.33)
Year ended 7/31/06 $11.54 0.24# 0.03# 0.27 (0.22) (0.27)
Year ended 7/31/05 $10.90 0.17# 0.72# 0.89 (0.16) (0.09)
Year ended 7/31/04 $10.59 0.14# 0.52# 0.66 (0.15) (0.20)
8/1/02(d) to 7/31/03 $10.00 0.09# 0.59# 0.68 (0.09) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Institutional Shares
Six months ended 1/31/08 + $10.99 0.23#+++ (0.13)# 0.10 (0.28) (0.30)
Year ended 7/31/07 $10.72 0.41#+++ 0.49# 0.90 (0.41) (0.22)
Year ended 7/31/06 $10.92 0.40#+++ (0.09)# 0.31 (0.40) (0.11)
Year ended 7/31/05 $10.66 0.31# 0.36# 0.67 (0.32) (0.09)
Year ended 7/31/04 $10.54 0.31# 0.26# 0.57 (0.29) (0.16)
8/1/02(d) to 7/31/03 $10.00 0.23# 0.52# 0.75 (0.21) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Class A Shares
Six months ended 1/31/08 + $10.97 0.20#+++ (0.12)# 0.08 (0.26) (0.30)
Year ended 7/31/07 $10.70 0.38#+++ 0.49# 0.87 (0.38) (0.22)
Year ended 7/31/06 $10.90 0.37#+++ (0.09)# 0.28 (0.37) (0.11)
Year ended 7/31/05 $10.64 0.30# 0.34# 0.64 (0.29) (0.09)
Year ended 7/31/04 $10.53 0.26# 0.28# 0.54 (0.27) (0.16)
8/1/02(d) to 7/31/03 $10.00 0.21# 0.51# 0.72 (0.19) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Class B Shares
Six months ended 1/31/08 + $10.95 0.17#+++ (0.13)# 0.04 (0.22) (0.30)
Year ended 7/31/07 $10.67 0.29#+++ 0.50# 0.79 (0.30) (0.21)
Year ended 7/31/06 $10.87 0.29#+++ (0.09)# 0.20 (0.29) (0.11)
Year ended 7/31/05 $10.61 0.22# 0.34# 0.56 (0.21) (0.09)
Year ended 7/31/04 $10.50 0.19# 0.27# 0.46 (0.19) (0.16)
8/1/02(d) to 7/31/03 $10.00 0.16# 0.49# 0.65 (0.15) --
- --------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Class C Shares
Six months ended 1/31/08 + $10.95 0.16#+++ (0.12)# 0.04 (0.21) (0.30)
Year ended 7/31/07 $10.67 0.29#+++ 0.51# 0.80 (0.30) (0.22)
Year ended 7/31/06 $10.88 0.29#+++ (0.11)# 0.18 (0.28) (0.11)
Year ended 7/31/05 $10.61 0.23# 0.34# 0.57 (0.21) (0.09)
Year ended 7/31/04 $10.51 0.18# 0.28# 0.46 (0.20) (0.16)
8/1/02(d) to 7/31/03 $10.00 0.15# 0.50# 0.65 (0.14) --
- --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
154
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Institutional Shares
Six months ended 1/31/08 + (0.98) $10.94 (0.39)%* $ 41,353 0.55%** 0.08%** 3.54%** 12%
Year ended 7/31/07 (0.68) $11.95 11.24% $ 41,336 0.54% 0.08% 2.89% 30%
Year ended 7/31/06 (0.61) $11.36 3.39% $ 42,683 0.50% 0.08% 3.05% 22%
Year ended 7/31/05 (0.36) $11.59 9.24% $ 38,606 0.47% 0.08% 2.44% 38%
Year ended 7/31/04 (0.45) $10.95 7.39% $ 38,097 0.49% 0.08% 2.33% 19%
8/1/02(d) to 7/31/03 (0.16) $10.62 7.87%* $ 40,412 0.60%** 0.08%** 2.23%** 72%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Class A Shares
Six months ended 1/31/08 + (0.96) $10.93 (0.51)%* $ 32,041 0.79%** 0.33%** 3.12%** 12%
Year ended 7/31/07 (0.65) $11.93 10.96% $ 35,676 0.79% 0.33% 2.63% 30%
Year ended 7/31/06 (0.58) $11.35 3.14% $ 37,479 0.75% 0.33% 2.80% 22%
Year ended 7/31/05 (0.33) $11.58 8.97% $ 41,446 0.72% 0.33% 2.18% 38%
Year ended 7/31/04 (0.42) $10.93 7.15% $ 40,851 0.74% 0.33% 2.09% 19%
8/1/02(d) to 7/31/03 (0.14) $10.60 7.51%* $ 19,449 1.04%** 0.33%** 1.82%** 72%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Class B Shares
Six months ended 1/31/08 + (0.91) $10.89 (0.83)%* $ 16,626 1.54%** 1.08%** 2.50%** 12%
Year ended 7/31/07 (0.56) $11.88 10.17% $ 18,839 1.54% 1.08% 1.89% 30%
Year ended 7/31/06 (0.50) $11.30 2.28% $ 20,488 1.50% 1.08% 2.05% 22%
Year ended 7/31/05 (0.25) $11.54 8.10% $ 22,752 1.47% 1.08% 1.44% 38%
Year ended 7/31/04 (0.35) $10.90 6.35% $ 21,122 1.49% 1.08% 1.31% 19%
8/1/02(d) to 7/31/03 (0.10) $10.58 6.81%* $ 9,083 1.80%** 1.08%** 1.09%** 72%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Moderately Conservative(SM) Class C Shares
Six months ended 1/31/08 + (0.92) $10.90 (0.83)%* $ 2,571 1.54%** 1.08%** 2.48%** 12%
Year ended 7/31/07 (0.56) $11.89 10.08% $ 2,755 1.54% 1.08% 1.88% 30%
Year ended 7/31/06 (0.49) $11.32 2.43% $ 3,058 1.50% 1.08% 2.05% 22%
Year ended 7/31/05 (0.25) $11.54 8.18% $ 4,029 1.47% 1.08% 1.42% 38%
Year ended 7/31/04 (0.35) $10.90 6.29% $ 3,576 1.49% 1.08% 1.26% 19%
8/1/02(d) to 7/31/03 (0.09) $10.59 6.81%* $ 1,017 1.73%** 1.08%** 1.07%** 72%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Institutional Shares
Six months ended 1/31/08 + (0.58) $10.51 0.84%* $ 27,931 0.63%** 0.08%** 4.17%** 11%
Year ended 7/31/07 (0.63) $10.99 8.58% $ 24,570 0.64% 0.08% 3.69% 24%
Year ended 7/31/06 (0.51) $10.72 2.88% $ 24,385 0.58% 0.08% 3.72% 15%
Year ended 7/31/05 (0.41) $10.92 6.38% $ 22,236 0.54% 0.08% 3.00% 46%
Year ended 7/31/04 (0.45) $10.66 5.44% $ 14,201 0.58% 0.08% 2.79% 27%
8/1/02(d) to 7/31/03 (0.21) $10.54 7.58%* $ 16,014 0.75%** 0.08%** 2.90%** 63%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Class A Shares
Six months ended 1/31/08 + (0.56) $10.49 0.71%* $ 14,880 0.88%** 0.33%** 3.74%** 11%
Year ended 7/31/07 (0.60) $10.97 8.33% $ 15,083 0.89% 0.33% 3.44% 24%
Year ended 7/31/06 (0.48) $10.70 2.62% $ 16,138 0.82% 0.33% 3.45% 15%
Year ended 7/31/05 (0.38) $10.90 6.13% $ 20,014 0.79% 0.33% 2.76% 46%
Year ended 7/31/04 (0.43) $10.64 5.11% $ 20,461 0.84% 0.33% 2.59% 27%
8/1/02(d) to 7/31/03 (0.19) $10.53 7.31%* $ 9,387 1.17%** 0.33%** 2.52%** 63%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Class B Shares
Six months ended 1/31/08 + (0.52) $10.47 0.39%* $ 8,645 1.63%** 1.08%** 3.08%** 11%
Year ended 7/31/07 (0.51) $10.95 7.53% $ 9,242 1.64% 1.07% 2.69% 24%
Year ended 7/31/06 (0.40) $10.67 1.83% $ 10,208 1.57% 1.08% 2.69% 15%
Year ended 7/31/05 (0.30) $10.87 5.34% $ 12,688 1.54% 1.08% 2.01% 46%
Year ended 7/31/04 (0.35) $10.61 4.37% $ 13,524 1.58% 1.08% 1.80% 27%
8/1/02(d) to 7/31/03 (0.15) $10.50 6.54%* $ 8,795 1.86%** 1.08%** 1.75%** 63%
- ------------------------------------------------------------------------------------------------------------------------------------
LifeModel Conservative(SM) Class C Shares
Six months ended 1/31/08 + (0.51) $10.48 0.37%* $ 2,521 1.63%** 1.08%** 2.95%** 11%
Year ended 7/31/07 (0.52) $10.95 7.59% $ 3,091 1.64% 1.07% 2.67% 24%
Year ended 7/31/06 (0.39) $10.67 1.72% $ 3,816 1.57% 1.08% 2.68% 15%
Year ended 7/31/05 (0.30) $10.88 5.30% $ 5,304 1.54% 1.08% 2.01% 46%
Year ended 7/31/04 (0.36) $10.61 4.34% $ 6,563 1.58% 1.08% 1.81% 27%
8/1/02(d) to 7/31/03 (0.14) $10.51 6.58%* $ 2,203 1.86%** 1.08%** 1.63%** 63%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
155
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
---------------------------- --------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investment from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- -------------------------------------------------------------------------------------------------------------------
High Yield Bond Institutional Shares
Six months ended 1/31/08 + $ 9.57 0.36+++ (0.11) 0.25 (0.37) --
Year ended 7/31/07 $ 9.74 0.71+++ (0.14) 0.57 (0.71) (0.03)
Year ended 7/31/06 $10.00 0.44 (0.28) 0.16 (0.42) --
- -------------------------------------------------------------------------------------------------------------------
High Yield Bond Class A Shares
Six months ended 1/31/08 + $ 9.57 0.34+++ (0.14) 0.20 (0.34) --
Year ended 7/31/07 $ 9.74 0.68+++ (0.13) 0.55 (0.69) (0.03)
Year ended 7/31/06 $10.00 0.41 (0.27) 0.14 (0.40) --
- -------------------------------------------------------------------------------------------------------------------
High Yield Bond Class B Shares
Six months ended 1/31/08 + $ 9.56 0.31+++ (0.12) 0.19 (0.31) --
Year ended 7/31/07 $ 9.73 0.61+++ (0.13) 0.48 (0.62) (0.03)
Year ended 7/31/06 $10.00 0.33 (0.24) 0.09 (0.36) --
- -------------------------------------------------------------------------------------------------------------------
High Yield Bond Class C Shares
Six months ended 1/31/08 + $ 9.57 0.31+++ (0.12) 0.19 (0.32) --
Year ended 7/31/07 $ 9.74 0.60+++ (0.12) 0.48 (0.62) (0.03)
Year ended 7/31/06 $10.00 0.35 (0.25) 0.10 (0.36) --
- -------------------------------------------------------------------------------------------------------------------
Total Return Bond Institutional Shares
Six months ended 1/31/08 + $ 9.68 0.24+++ 0.18 0.42 (0.24) --
Year ended 7/31/07 $ 9.68 0.45+++@ 0.01 0.46 (0.46) --
Year ended 7/31/06 $10.07 0.42 (0.30) 0.12 (0.45) (0.06)
Year ended 7/31/05 $10.02 0.34 0.10 0.44 (0.38) (0.01)
Year ended 7/31/04 $ 9.96 0.28 0.14 0.42 (0.36) --
Year ended 7/31/03 $ 9.93 0.39 0.09 0.48 (0.45) --
- -------------------------------------------------------------------------------------------------------------------
Total Return Bond Class A Shares
Six months ended 1/31/08 + $ 9.67 0.23+++ 0.18 0.41 (0.23) --
Year ended 7/31/07 $ 9.68 0.43+++@ -- 0.43 (0.44) --
Year ended 7/31/06 $10.07 0.39 (0.30) 0.09 (0.42) (0.06)
Year ended 7/31/05 $10.02 0.30 0.11 0.41 (0.35) (0.01)
Year ended 7/31/04 $ 9.95 0.25 0.16 0.41 (0.34) --
Year ended 7/31/03 $ 9.92 0.37 0.08 0.45 (0.42) --
- -------------------------------------------------------------------------------------------------------------------
Total Return Bond Class B Shares
Six months ended 1/31/08 + $ 9.68 0.19+++ 0.18 0.37 (0.19) --
Year ended 7/31/07 $ 9.68 0.35+++@ 0.01 0.36 (0.36) --
Year ended 7/31/06 $10.07 0.32 (0.30) 0.02 (0.35) (0.06)
Year ended 7/31/05 $10.02 0.23 0.10 0.33 (0.27) (0.01)
Year ended 7/31/04 $ 9.95 0.15 0.18 0.33 (0.26) --
Year ended 7/31/03 $ 9.93 0.28 0.08 0.36 (0.34) --
- -------------------------------------------------------------------------------------------------------------------
Total Return Bond Class C Shares
Six months ended 1/31/08 + $ 9.68 0.19+++ 0.19 0.38 (0.19) --
Year ended 7/31/07 $ 9.69 0.35+++@ -- 0.35 (0.36) --
Year ended 7/31/06 $10.07 0.31 (0.28) 0.03 (0.35) (0.06)
Year ended 7/31/05 $10.02 0.23 0.10 0.33 (0.27) (0.01)
Year ended 7/31/04 $ 9.96 0.17 0.15 0.32 (0.26) --
Year ended 7/31/03 $ 9.93 0.29 0.08 0.37 (0.34) --
- -------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
156
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Institutional Shares
Six months ended 1/31/08 + (0.37) $ 9.45 2.56%* $ 52,649 1.15%** 0.74%** 7.43%** 16%
Year ended 7/31/07 (0.74) $ 9.57 5.85% $ 68,193 1.14% 0.74% 7.12% 42%
Year ended 7/31/06 (0.42) $ 9.74 1.59%* $ 66,033 1.15%** 0.74%** 6.77%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Class A Shares
Six months ended 1/31/08 + (0.34) $ 9.43 2.18%* $ 183 1.39%** 1.00%** 6.93%** 16%
Year ended 7/31/07 (0.72) $ 9.57 5.47% $ 175 1.39% 0.99% 6.83% 42%
Year ended 7/31/06 (0.40) $ 9.74 1.44%* $ 227 2.98%** 0.99%** 6.74%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Class B Shares
Six months ended 1/31/08 + (0.31) $ 9.44 1.98%* $ 84 2.15%** 1.74%** 6.40%** 16%
Year ended 7/31/07 (0.65) $ 9.56 4.83% $ 156 2.15% 1.74% 6.12% 42%
Year ended 7/31/06 (0.36) $ 9.73 0.91%* $ 96 7.16%** 1.74%** 5.98%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Bond Class C Shares
Six months ended 1/31/08 + (0.32) $ 9.44 2.04%* $ 127 2.11%** 1.74%** 6.43%** 16%
Year ended 7/31/07 (0.65) $ 9.57 4.72% $ 127 2.15% 1.74% 6.04% 42%
Year ended 7/31/06 (0.36) $ 9.74 0.94%* $ 55 8.04%** 1.74%** 5.93%** 41%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return Bond Institutional Shares
Six months ended 1/31/08 + (0.24) $ 9.86 4.42%* $668,065 0.87%** 0.70%** 4.89%** 16%
Year ended 7/31/07 (0.46) $ 9.68 4.83%@ $230,154 0.91% 0.72% 4.57% 65%
Year ended 7/31/06 (0.51) $ 9.68 1.21% $252,145 0.90% 0.74% 4.23% 352%
Year ended 7/31/05 (0.39) $10.07 4.43% $292,043 0.91% 0.78% 3.28% 385%
Year ended 7/31/04 (0.36) $10.02 4.26% $277,706 0.90% 0.79% 2.75% 389%
Year ended 7/31/03 (0.45) $ 9.96 4.79% $303,450 0.89% 0.80% 3.86% 332%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return Bond Class A Shares
Six months ended 1/31/08 + (0.23) $ 9.85 4.29%* $ 25,816 1.12%** 0.95%** 4.65%** 16%
Year ended 7/31/07 (0.44) $ 9.67 4.45%@ $ 8,223 1.16% 0.97% 4.32% 65%
Year ended 7/31/06 (0.48) $ 9.68 0.97% $ 11,657 1.15% 0.99% 3.97% 352%
Year ended 7/31/05 (0.36) $10.07 4.17% $ 15,876 1.16% 1.03% 3.01% 385%
Year ended 7/31/04 (0.34) $10.02 4.00% $ 22,559 1.15% 1.04% 2.51% 389%
Year ended 7/31/03 (0.42) $ 9.95 4.62% $ 20,572 1.14% 1.05% 3.57% 332%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return Bond Class B Shares
Six months ended 1/31/08 + (0.19) $ 9.86 3.87%* $ 3,806 1.88%** 1.70%** 3.88%** 16%
Year ended 7/31/07 (0.36) $ 9.68 3.75%@ $ 2,151 1.91% 1.72% 3.57% 65%
Year ended 7/31/06 (0.41) $ 9.68 0.20% $ 2,655 1.91% 1.74% 3.20% 352%
Year ended 7/31/05 (0.28) $10.07 3.38% $ 3,907 1.91% 1.78% 2.27% 385%
Year ended 7/31/04 (0.26) $10.02 3.19% $ 4,512 1.90% 1.79% 1.76% 389%
Year ended 7/31/03 (0.34) $ 9.95 3.74% $ 7,418 1.89% 1.80% 2.81% 332%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return Bond Class C Shares
Six months ended 1/31/08 + (0.19) $ 9.87 3.95%* $ 1,764 1.85%** 1.69%** 3.94%** 16%
Year ended 7/31/07 (0.36) $ 9.68 3.65%@ $ 225 1.90% 1.72% 3.57% 65%
Year ended 7/31/06 (0.41) $ 9.69 0.30% $ 315 1.91% 1.74% 3.16% 352%
Year ended 7/31/05 (0.28) $10.07 3.37% $ 649 1.91% 1.78% 2.26% 385%
Year ended 7/31/04 (0.26) $10.02 3.20% $ 768 1.90% 1.79% 1.76% 389%
Year ended 7/31/03 (0.34) $ 9.96 3.75% $ 1,246 1.89% 1.80% 2.79% 332%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
157
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
---------------------------- -----------------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investment from Investment Paid-in Realized
of Period Income/(Loss) Transactions Operations Income Capital Gains
- -------------------------------------------------------------------------------------------------------------------------
Short Term Bond Institutional Shares
Six months ended 1/31/08 + $ 9.32 0.19+++ 0.21 0.40 (0.20) -- --
Year ended 7/31/07 $ 9.25 0.37+++ 0.09 0.46 (0.38) (0.01) --
Year ended 7/31/06 $ 9.37 0.31 (0.06) 0.25 (0.37) -- --
Year ended 7/31/05 $ 9.57 0.20 (0.08) 0.12 (0.32) -- --
Year ended 7/31/04 $ 9.75 0.19+++ (0.06) 0.13 (0.31) -- --
Year ended 7/31/03 $ 9.82 0.28 0.03 0.31 (0.38) -- --
- -------------------------------------------------------------------------------------------------------------------------
Short Term Bond Class A Shares
Six months ended 1/31/08 + $ 9.31 0.18+++ 0.20 0.38 (0.18) -- --
Year ended 7/31/07 $ 9.25 0.35+++ 0.08 0.43 (0.36) (0.01) --
Year ended 7/31/06 $ 9.36 0.28 (0.04) 0.24 (0.35) -- --
Year ended 7/31/05 $ 9.56 0.19 (0.09) 0.10 (0.30) -- --
Year ended 7/31/04 $ 9.74 0.18+++ (0.07) 0.11 (0.29) -- --
Year ended 7/31/03 $ 9.81 0.28 0.02 0.30 (0.37) -- --
- -------------------------------------------------------------------------------------------------------------------------
Short Term Bond Class C Shares
Six months ended 1/31/08 + $ 9.32 0.14+++ 0.20 0.34 (0.15) -- --
Year ended 7/31/07 $ 9.25 0.28+++ 0.09 0.37 (0.29) (0.01) --
Year ended 7/31/06 $ 9.36 0.21 (0.04) 0.17 (0.28) -- --
Year ended 7/31/05 $ 9.56 0.10 (0.08) 0.02 (0.22) -- --
Year ended 7/31/04 $ 9.75 0.09+++ (0.06) 0.03 (0.22) -- --
- -------------------------------------------------------------------------------------------------------------------------
Municipal Bond Institutional Shares
Six months ended 1/31/08 + $ 9.32 0.18+++ 0.17 0.35 (0.20) -- (0.03)
Year ended 7/31/07 $ 9.40 0.39+++@ -- 0.39 (0.37) -- (0.10)
Year ended 7/31/06 $10.07 0.37 (0.23) 0.14 (0.37) -- (0.44)
Year ended 7/31/05 $10.40 0.40 0.06 0.46 (0.40) -- (0.39)
Year ended 7/31/04 $10.49 0.43+++ 0.08 0.51 (0.43) -- (0.17)
Year ended 7/31/03 $10.74 0.43+++ (0.09) 0.34 (0.43) -- (0.16)
- -------------------------------------------------------------------------------------------------------------------------
Municipal Bond Class A Shares
Six months ended 1/31/08 + $ 9.36 0.17+++ 0.17 0.34 (0.18) -- (0.03)
Year ended 7/31/07 $ 9.45 0.36+++@ (0.01) 0.35 (0.34) -- (0.10)
Year ended 7/31/06 $10.11 0.36 (0.23) 0.13 (0.35) -- (0.44)
Year ended 7/31/05 $10.43 0.38 0.06 0.44 (0.37) -- (0.39)
Year ended 7/31/04 $10.54 0.40+++ 0.06 0.46 (0.40) -- (0.17)
Year ended 7/31/03 $10.77 0.40+++ (0.07) 0.33 (0.40) -- (0.16)
- -------------------------------------------------------------------------------------------------------------------------
Municipal Bond Class B Shares
Six months ended 1/31/08 + $ 9.29 0.13+++ 0.17 0.30 (0.15) -- (0.03)
Year ended 7/31/07 $ 9.37 0.29+++@ -- 0.29 (0.27) -- (0.10)
Year ended 7/31/06 $10.04 0.28 (0.24) 0.04 (0.27) -- (0.44)
Year ended 7/31/05 $10.37 0.29 0.06 0.35 (0.29) -- (0.39)
Year ended 7/31/04 $10.47 0.32+++ 0.07 0.39 (0.32) -- (0.17)
Year ended 7/31/03 $10.71 0.32+++ (0.07) 0.25 (0.33) -- (0.16)
- -------------------------------------------------------------------------------------------------------------------------
Municipal Bond Class C Shares
Six months ended 1/31/08 + $ 9.32 0.13+++ 0.17 0.30 (0.15) -- (0.03)
Year ended 7/31/07 $ 9.39 0.29+++@ -- 0.29 (0.26) -- (0.10)
Year ended 7/31/06 $10.05 0.28 (0.23) 0.05 (0.27) -- (0.44)
Year ended 7/31/05 $10.38 0.31 0.04 0.35 (0.29) -- (0.39)
Year ended 7/31/04 $10.48 0.32+++ 0.07 0.39 (0.32) -- (0.17)
Year ended 7/31/03 $10.72 0.32+++ (0.07) 0.25 (0.33) -- (0.16)
- -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
158
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ----------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Institutional Shares
Six months ended 1/31/08 + (0.20) $ 9.52 4.29%* $264,952 0.80%** 0.64%** 4.03%** 14%
Year ended 7/31/07 (0.39) $ 9.32 5.08% $267,348 0.80% 0.64% 3.99% 75%
Year ended 7/31/06 (0.37) $ 9.25 2.75% $258,423 0.78% 0.67% 3.33% 53%
Year ended 7/31/05 (0.32) $ 9.37 1.16% $333,909 0.77% 0.73% 2.35% 68%
Year ended 7/31/04 (0.31) $ 9.57 1.31% $495,271 0.77% 0.74% 1.96% 90%
Year ended 7/31/03 (0.38) $ 9.75 3.23% $490,229 0.76% 0.74% 2.59% 72%
- ----------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Class A Shares
Six months ended 1/31/08 + (0.18) $ 9.51 4.16%* $ 9,239 1.05%** 0.89%** 3.78%** 14%
Year ended 7/31/07 (0.37) $ 9.31 4.70% $ 9,704 1.05% 0.89% 3.72% 75%
Year ended 7/31/06 (0.35) $ 9.25 2.60% $ 12,362 1.03% 0.92% 3.07% 53%
Year ended 7/31/05 (0.30) $ 9.36 1.00% $ 17,117 1.02% 0.98% 2.10% 68%
Year ended 7/31/04 (0.29) $ 9.56 1.12% $ 28,262 1.02% 0.89% 1.81% 90%
Year ended 7/31/03 (0.37) $ 9.74 3.07% $ 33,975 1.01% 0.89% 2.39% 72%
- ----------------------------------------------------------------------------------------------------------------------------------
Short Term Bond Class C Shares
Six months ended 1/31/08 + (0.15) $ 9.51 3.79%* $ 177 1.80%** 1.64%** 3.04%** 14%
Year ended 7/31/07 (0.30) $ 9.32 3.93% $ 160 1.81% 1.64% 2.97% 75%
Year ended 7/31/06 (0.28) $ 9.25 1.81% $ 205 1.79% 1.67% 2.31% 53%
Year ended 7/31/05 (0.22) $ 9.36 0.23% $ 362 1.77% 1.73% 1.34% 68%
Year ended 7/31/04 (0.22) $ 9.56 0.39%* $ 526 1.77%** 1.74%** 0.97%** 90%
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Institutional Shares
Six months ended 1/31/08 + (0.23) $ 9.44 3.88%* $ 40,609 1.11%** 0.61%** 3.79%** 36%
Year ended 7/31/07 (0.47) $ 9.32 4.04%@ $ 44,234 1.13% 0.61% 3.87% 27%
Year ended 7/31/06 (0.81) $ 9.40 1.49% $ 39,514 1.06% 0.65% 3.87% 87%
Year ended 7/31/05 (0.79) $10.07 4.53% $ 49,802 1.04% 0.78% 3.86% 83%
Year ended 7/31/04 (0.60) $10.40 4.84% $ 57,638 0.98% 0.79% 4.05% 35%
Year ended 7/31/03 (0.59) $10.49 3.18% $ 74,347 0.93% 0.79% 3.98% 21%
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Class A Shares
Six months ended 1/31/08 + (0.21) $ 9.49 3.73%* $ 1,275 1.36%** 0.86%** 3.54%** 36%
Year ended 7/31/07 (0.44) $ 9.36 3.76%@ $ 1,231 1.38% 0.86% 3.63% 27%
Year ended 7/31/06 (0.79) $ 9.45 1.32% $ 1,378 1.31% 0.90% 3.62% 87%
Year ended 7/31/05 (0.76) $10.11 4.35% $ 1,637 1.29% 1.03% 3.63% 83%
Year ended 7/31/04 (0.57) $10.43 4.35% $ 2,462 1.24% 1.04% 3.81% 35%
Year ended 7/31/03 (0.56) $10.54 3.05% $ 1,906 1.18% 1.04% 3.71% 21%
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Class B Shares
Six months ended 1/31/08 + (0.18) $ 9.41 3.35%* $ 708 2.18%** 1.61%** 2.79%** 36%
Year ended 7/31/07 (0.37) $ 9.29 2.98%@ $ 864 2.13% 1.61% 2.88% 27%
Year ended 7/31/06 (0.71) $ 9.37 0.47% $ 1,016 2.06% 1.66% 2.86% 87%
Year ended 7/31/05 (0.68) $10.04 3.50% $ 1,479 2.04% 1.78% 2.85% 83%
Year ended 7/31/04 (0.49) $10.37 3.71% $ 1,528 1.99% 1.79% 3.06% 35%
Year ended 7/31/03 (0.49) $10.47 2.26% $ 1,205 1.92% 1.79% 2.97% 21%
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Class C Shares
Six months ended 1/31/08 + (0.18) $ 9.44 3.35%* $ 30 2.11%** 1.61%** 2.79%** 36%
Year ended 7/31/07 (0.36) $ 9.32 3.04%@ $ 43 2.12% 1.61% 2.89% 27%
Year ended 7/31/06 (0.71) $ 9.39 0.56% $ 87 2.06% 1.66% 2.86% 87%
Year ended 7/31/05 (0.68) $10.05 3.45% $ 179 2.03% 1.78% 2.91% 83%
Year ended 7/31/04 (0.49) $10.38 3.71% $ 363 1.98% 1.79% 3.05% 35%
Year ended 7/31/03 (0.49) $10.48 2.31% $ 548 1.93% 1.79% 2.98% 21%
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
159
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Change in Net Assets Less Dividends and
Resulting from Operations Distributions from
----------------------------- ---------------------
Net Realized
and
Unrealized Change in
Net Asset Gains/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investment from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Institutional Shares
Six months ended 1/31/08 + $ 9.95 0.18+++ 0.28 0.46 (0.18) (0.03)
Year ended 7/31/07 $ 9.99 0.36+++ (0.01) 0.35 (0.36) (0.03)
Year ended 7/31/06 $10.33 0.36+++ (0.21) 0.15 (0.36) (0.13)
Year ended 7/31/05 $10.53 0.37 (0.07) 0.30 (0.42) (0.08)
Year ended 7/31/04 $10.64 0.37 (0.03) 0.34 (0.36) (0.09)
4/1/03(d) to 7/31/03 $10.79 0.37+++ (0.09) 0.28 (0.36) (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Class A Shares
Six months ended 1/31/08 + $ 9.95 0.17+++ 0.28 0.45 (0.17) (0.03)
Year ended 7/31/07 $10.00 0.34+++ (0.02) 0.32 (0.34) (0.03)
Year ended 7/31/06 $10.33 0.33+++ (0.20) 0.13 (0.33) (0.13)
Year ended 7/31/05 $10.54 0.33 (0.07) 0.26 (0.39) (0.08)
Year ended 7/31/04 $10.65 0.34 (0.02) 0.32 (0.34) (0.09)
4/1/03(d) to 7/31/03 $10.79 0.34+++ (0.07) 0.27 (0.34) (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Class B Shares
Six months ended 1/31/08 + $ 9.94 0.17+++ 0.27 0.44 (0.16) (0.03)
Year ended 7/31/07 $ 9.98 0.34+++ (0.01) 0.33 (0.34) (0.03)
Year ended 7/31/06 $10.31 0.33+++ (0.20) 0.13 (0.33) (0.13)
Year ended 7/31/05 $10.51 0.34 (0.07) 0.27 (0.39) (0.08)
Year ended 7/31/04 $10.63 0.30 (0.03) 0.27 (0.30) (0.09)
4/1/03(d) to 7/31/03 $10.78 0.26+++ (0.08) 0.18 (0.26) (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Class C Shares
Six months ended 1/31/08 + $ 9.95 0.13+++ 0.28 0.41 (0.13) (0.03)
Year ended 7/31/07 $ 9.99 0.27+++ (0.02) 0.25 (0.26) (0.03)
Year ended 7/31/06 $10.33 0.26+++ (0.21) 0.05 (0.26) (0.13)
Year ended 7/31/05 $10.53 0.24 (0.05) 0.19 (0.31) (0.08)
Year ended 7/31/04 $10.63 0.28 (0.04) 0.24 (0.25) (0.09)
4/1/03(d) to 7/31/03 $10.78 0.26+++ (0.08) 0.18 (0.26) (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Institutional Shares
Six months ended 1/31/08 + $ 9.97 0.17+++ 0.28 0.45 (0.19) (0.04)
Year ended 7/31/07 $10.00 0.37+++@ (0.04) 0.33 (0.35) (0.01)
Year ended 7/31/06 $10.24 0.36+++ (0.21) 0.15 (0.36) (0.03)
Year ended 7/31/05 $10.39 0.36 (0.09) 0.27 (0.35) (0.07)
Year ended 7/31/04 $10.39 0.36 0.02 0.38 (0.35) (0.03)
Year ended 7/31/03 $10.48 0.37 (0.09) 0.28 (0.37) --
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Class A Shares
Six months ended 1/31/08 + $ 9.98 0.16+++ 0.28 0.44 (0.18) (0.04)
Year ended 7/31/07 $10.01 0.34+++@ (0.04) 0.30 (0.32) (0.01)
Year ended 7/31/06 $10.25 0.33+++ (0.21) 0.12 (0.33) (0.03)
Year ended 7/31/05 $10.39 0.33 (0.08) 0.25 (0.32) (0.07)
Year ended 7/31/04 $10.39 0.33 0.03 0.36 (0.33) (0.03)
Year ended 7/31/03 $10.48 0.35 (0.10) 0.25 (0.34) --
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Class B Shares
Six months ended 1/31/08 + $ 9.75 0.12+++ 0.26 0.38 (0.14) (0.04)
Year ended 7/31/07 $ 9.78 0.26+++@ (0.03) 0.23 (0.25) (0.01)
Year ended 7/31/06 $10.03 0.25+++ (0.21) 0.04 (0.26) (0.03)
Year ended 7/31/05 $10.18 0.25 (0.08) 0.17 (0.25) (0.07)
Year ended 7/31/04 $10.19 0.24 0.03 0.27 (0.25) (0.03)
Year ended 7/31/03 $10.29 0.27 (0.10) 0.17 (0.27) --
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Class C Shares
Six months ended 1/31/08 + $ 9.94 0.12+++ 0.27 0.39 (0.14) (0.04)
Year ended 7/31/07 $ 9.97 0.26+++@ (0.03) 0.23 (0.25) (0.01)
Year ended 7/31/06 $10.20 0.25+++ (0.20) 0.05 (0.25) (0.03)
Year ended 7/31/05 $10.35 0.25 (0.09) 0.16 (0.24) (0.07)
Year ended 7/31/04 $10.35 0.26 0.02 0.28 (0.25) (0.03)
Year ended 7/31/03 $10.44 0.26 (0.09) 0.17 (0.26) --
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
160
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Institutional Shares
Six months ended 1/31/08 + (0.21) $10.20 4.67%* $143,501 0.90%** 0.66%** 3.58%** 24%
Year ended 7/31/07 (0.39) $ 9.95 3.59% $149,016 0.89% 0.68% 3.63% 37%
Year ended 7/31/06 (0.49) $ 9.99 1.43% $164,537 0.87% 0.71% 3.53% 60%
Year ended 7/31/05 (0.50) $10.33 2.83% $205,078 0.86% 0.70% 3.45% 60%
Year ended 7/31/04 (0.45) $10.53 3.27% $255,026 0.84% 0.73% 3.42% 84%
4/1/03(d) to 7/31/03 (0.43) $10.64 2.64% $304,754 0.83% 0.73% 3.36% 85%
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Class A Shares
Six months ended 1/31/08 + (0.20) $10.20 4.54%* $ 2,121 1.15%** 0.91%** 3.32%** 24%
Year ended 7/31/07 (0.37) $ 9.95 3.23% $ 2,038 1.15% 0.94% 3.37% 37%
Year ended 7/31/06 (0.46) $10.00 1.27% $ 2,559 1.12% 0.96% 3.28% 60%
Year ended 7/31/05 (0.47) $10.33 2.44% $ 3,064 1.10% 0.95% 3.20% 60%
Year ended 7/31/04 (0.43) $10.54 3.03% $ 4,479 1.09% 0.98% 3.17% 84%
4/1/03(d) to 7/31/03 (0.41) $10.65 2.48% $ 4,317 1.08% 0.98% 3.10% 85%
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Class B Shares
Six months ended 1/31/08 + (0.19) $10.19 4.45%* $ 374 1.90%** 0.91%** 3.32%** 24%
Year ended 7/31/07 (0.37) $ 9.94 3.34% $ 358 1.90% 0.94% 3.37% 37%
Year ended 7/31/06 (0.46) $ 9.98 1.28% $ 446 1.87% 0.96% 3.27% 60%
Year ended 7/31/05 (0.47) $10.31 2.54% $ 987 1.86% 0.95% 3.20% 60%
Year ended 7/31/04 (0.39) $10.51 2.54% $ 1,269 1.84% 1.44% 2.71% 84%
4/1/03(d) to 7/31/03 (0.33) $10.63 1.67% $ 1,066 1.83% 1.73% 2.35% 85%
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Bond Class C Shares
Six months ended 1/31/08 + (0.16) $10.20 4.14%* $ 99 1.90%** 1.66%** 2.58%** 24%
Year ended 7/31/07 (0.29) $ 9.95 2.55% $ 101 1.89% 1.67% 2.64% 37%
Year ended 7/31/06 (0.39) $ 9.99 0.41% $ 89 1.87% 1.71% 2.52% 60%
Year ended 7/31/05 (0.39) $10.33 1.76% $ 157 1.85% 1.69% 2.45% 60%
Year ended 7/31/04 (0.34) $10.53 2.29% $ 366 1.83% 1.73% 2.42% 84%
4/1/03(d) to 7/31/03 (0.33) $10.63 1.64% $ 973 1.83% 1.73% 2.35% 85%
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Institutional Shares
Six months ended 1/31/08 + (0.23) $10.19 4.58%* $ 81,216 0.95%** 0.79%** 3.43%** 26%
Year ended 7/31/07 (0.36) $ 9.97 3.32%@ $ 81,780 0.93% 0.79% 3.50% 12%
Year ended 7/31/06 (0.39) $10.00 1.46% $ 85,716 0.90% 0.80% 3.54% 25%
Year ended 7/31/05 (0.42) $10.24 2.61% $104,554 0.87% 0.79% 3.37% 19%
Year ended 7/31/04 (0.38) $10.39 3.66% $126,343 0.86% 0.78% 3.39% 15%
Year ended 7/31/03 (0.37) $10.39 2.65% $151,478 0.85% 0.77% 3.49% 20%
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Class A Shares
Six months ended 1/31/08 + (0.22) $10.20 4.44%* $ 13,774 1.20%** 1.04%** 3.18%** 26%
Year ended 7/31/07 (0.33) $ 9.98 3.06%@ $ 15,451 1.18% 1.04% 3.25% 12%
Year ended 7/31/06 (0.36) $10.01 1.19% $ 23,032 1.15% 1.05% 3.29% 25%
Year ended 7/31/05 (0.39) $10.25 2.36% $ 27,870 1.12% 1.04% 3.13% 19%
Year ended 7/31/04 (0.36) $10.39 3.40% $ 26,962 1.11% 1.03% 3.14% 15%
Year ended 7/31/03 (0.34) $10.39 2.39% $ 25,177 1.10% 1.02% 3.23% 20%
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Class B Shares
Six months ended 1/31/08 + (0.18) $ 9.95 4.05%* $ 2,396 1.95%** 1.79%** 2.43%** 26%
Year ended 7/31/07 (0.26) $ 9.75 2.26%@ $ 2,682 1.93% 1.79% 2.50% 12%
Year ended 7/31/06 (0.29) $ 9.78 0.37% $ 3,426 1.90% 1.80% 2.54% 25%
Year ended 7/31/05 (0.32) $10.03 1.66% $ 4,279 1.87% 1.79% 2.37% 19%
Year ended 7/31/04 (0.28) $10.18 2.62% $ 4,714 1.86% 1.78% 2.39% 15%
Year ended 7/31/03 (0.27) $10.19 1.59% $ 5,101 1.84% 1.76% 2.48% 20%
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Bond Class C Shares
Six months ended 1/31/08 + (0.18) $10.15 4.07%* $ 655 1.95%** 1.79%** 2.43%** 26%
Year ended 7/31/07 (0.26) $ 9.94 2.19%@ $ 734 1.93% 1.79% 2.50% 12%
Year ended 7/31/06 (0.28) $ 9.97 0.44% $ 1,217 1.90% 1.80% 2.50% 25%
Year ended 7/31/05 (0.31) $10.20 1.60% $ 3,820 1.87% 1.79% 2.37% 19%
Year ended 7/31/04 (0.28) $10.35 2.65% $ 4,328 1.86% 1.78% 2.39% 15%
Year ended 7/31/03 (0.26) $10.35 1.65% $ 6,395 1.85% 1.77% 2.48% 20%
- ------------------------------------------------------------------------------------------------------------------------------------
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/(Losses) Net Assets
Value, Net from Resulting Net Net
Beginning Investment Investment from Investment Realized
of Period Income/(Loss) Transactions Operations Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Institutional Shares
Six months ended 1/31/08 + $ 9.90 0.15+++ 0.28 0.43 (0.15) --
Year ended 7/31/07 $ 9.88 0.30+++ 0.02 0.32 (0.30) --
Year ended 7/31/06 $10.03 0.28 (0.15) 0.13 (0.28) --
Year ended 7/31/05 $10.17 0.28 (0.13) 0.15 (0.28) (0.01)
Year ended 7/31/04 $10.31 0.28 (0.13) 0.15 (0.28) (0.01)
4/1/03(d) to 7/31/03 $10.39 0.31 (0.05) 0.26 (0.31) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Class A Shares
Six months ended 1/31/08 + $ 9.88 0.14+++ 0.29 0.43 (0.14) --
Year ended 7/31/07 $ 9.87 0.28+++ 0.02 0.30 (0.29) --
Year ended 7/31/06 $10.02 0.27 (0.15) 0.12 (0.27) --
Year ended 7/31/05 $10.16 0.26 (0.13) 0.13 (0.26) (0.01)
Year ended 7/31/04 $10.30 0.27 (0.13) 0.14 (0.27) (0.01)
4/1/03(d) to 7/31/03 $10.38 0.30 (0.05) 0.25 (0.30) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Class B Shares
Six months ended 1/31/08 + $ 9.88 0.10+++ 0.29 0.39 (0.10) --
Year ended 7/31/07 $ 9.88 0.20+++ -- 0.20 (0.20) --
Year ended 7/31/06 $10.02 0.19 (0.15) 0.04 (0.18) --
Year ended 7/31/05 $10.16 0.17 (0.13) 0.04 (0.17) (0.01)
Year ended 7/31/04 $10.30 0.18 (0.13) 0.05 (0.18) (0.01)
4/1/03(d) to 7/31/03 $10.38 0.21 (0.05) 0.16 (0.21) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Class C Shares
Six months ended 1/31/08 + $ 9.89 0.10+++ 0.29 0.39 (0.10) --
Year ended 7/31/07 $ 9.88 0.20+++ 0.01 0.21 (0.20) --
Year ended 7/31/06 $10.02 0.19 (0.15) 0.04 (0.18) --
Year ended 7/31/05 $10.16 0.18 (0.14) 0.04 (0.17) (0.01)
Year ended 7/31/04 $10.29 0.19 (0.13) 0.06 (0.18) (0.01)
4/1/03(d) to 7/31/03 $10.38 0.21 (0.06) 0.15 (0.21) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
162
Fifth Third Funds
Financial Highlights
(For a share of beneficial interest outstanding throughout each period)
Ratios/Supplemental Data
----------------------------------------------------------
Ratios of Ratios of
Net Total Net Expenses Expenses Ratios of Net
Total Asset Return Assets, to to Investment
Dividends Value, (excludes End of Average Average Income Portfolio
and End of sales Period Net Net to Average Turnover
Distributions Period charge) (000's) Assets (a) Assets (b) Net Assets Rate (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Institutional Shares
Six months ended 1/31/08 + (0.15) $10.18 4.47%* $ 43,645 0.99%** 0.68%** 2.90%** 18%
Year ended 7/31/07 (0.30) $ 9.90 3.17% $ 43,905 0.98% 0.68% 3.00% 28%
Year ended 7/31/06 (0.28) $ 9.88 1.35% $ 50,670 0.88% 0.68% 2.84% 12%
Year ended 7/31/05 (0.29) $10.03 1.49% $ 74,099 0.80% 0.68% 2.70% 11%
Year ended 7/31/04 (0.29) $10.17 1.43% $105,361 0.78% 0.69% 2.75% 21%
4/1/03(d) to 7/31/03 (0.34) $10.31 2.70% $118,867 0.77% 0.69% 3.02% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Class A Shares
Six months ended 1/31/08 + (0.14) $10.17 4.38%* $ 4,573 1.24%** 0.83%** 2.75%** 18%
Year ended 7/31/07 (0.29) $ 9.88 3.05% $ 4,511 1.22% 0.83% 2.85% 28%
Year ended 7/31/06 (0.27) $ 9.87 1.20% $ 4,728 1.13% 0.83% 2.70% 12%
Year ended 7/31/05 (0.27) $10.02 1.33% $ 4,713 1.05% 0.83% 2.55% 11%
Year ended 7/31/04 (0.28) $10.16 1.37% $ 7,294 1.03% 0.84% 2.60% 21%
4/1/03(d) to 7/31/03 (0.33) $10.30 2.45% $ 8,006 1.02% 0.84% 2.84% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Class B Shares
Six months ended 1/31/08 + (0.10) $10.17 3.95%* $ 573 1.99%** 1.68%** 1.90%** 18%
Year ended 7/31/07 (0.20) $ 9.88 2.06% $ 568 1.98% 1.68% 2.00% 28%
Year ended 7/31/06 (0.18) $ 9.88 0.42% $ 607 1.88% 1.68% 1.83% 12%
Year ended 7/31/05 (0.18) $10.02 0.46% $ 1,175 1.80% 1.68% 1.71% 11%
Year ended 7/31/04 (0.19) $10.16 0.43% $ 1,574 1.78% 1.69% 1.76% 21%
4/1/03(d) to 7/31/03 (0.24) $10.30 1.70% $ 2,010 1.76% 1.69% 1.95% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Class C Shares
Six months ended 1/31/08 + (0.10) $10.18 3.93%* $ 97 1.99%** 1.68%** 1.91%** 18%
Year ended 7/31/07 (0.20) $ 9.89 2.16% $ 145 1.98% 1.68% 2.00% 28%
Year ended 7/31/06 (0.18) $ 9.88 0.43% $ 196 1.88% 1.68% 1.83% 12%
Year ended 7/31/05 (0.18) $10.02 0.43% $ 449 1.80% 1.68% 1.69% 11%
Year ended 7/31/04 (0.19) $10.16 0.48% $ 1,794 1.78% 1.69% 1.76% 21%
4/1/03(d) to 7/31/03 (0.24) $10.29 1.60% $ 3,967 1.77% 1.69% 1.97% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
163
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.
+ Unaudited
* 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.
& 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.
@ 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 included
in Net Investment
Income/(Loss) 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% $ 0.00 ^
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% $ 0.00 ^
Bond 4.72% 4.45% 3.75% 3.65% 4.29% $ 0.00 ^
Intermediate Bond 5.23% 4.95% 4.77% 4.16% 4.64% $ 0.00 ^
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.
See notes to financial statements.
164
Fifth Third Funds
Notes to Financial Statements
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
(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-two
separate investment portfolios, one of which has not commenced investment
operations.
The accompanying financial statements and notes relate only to the series of the
Trust (individually a "Fund" and collectively the "Funds") listed below. Each
Fund is a diversified investment company for purposes of the Act, except for
Fifth Third Dividend Growth Fund and Fifth Third Ohio Municipal Bond Fund, each
of which is a non-diversified investment company. Dollar amounts are in
thousands unless otherwise indicated.
Fund 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 ("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 All Cap Value Fund, formerly, Fifth Third Multi Cap Value Fund ("All
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 International Equity Fund ("International Equity")
Fifth Third High Yield Bond Fund ("High Yield Bond")
Fifth Third Total Return Bond Fund, formerly, Fifth Third Bond Fund
("Total Return Bond")
Fifth Third Short Term Bond Fund ("Short Term 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 has three classes of shares: Institutional, Class A, and Class C
shares. Equity Index has seven classes of shares: Institutional, Class A, Class
B, Class C, Select, Preferred and Trust shares. The remainder of the Funds each
have four classes of shares: Institutional, Class A, Class B, and Class C
shares. Advisor shares for Short Term Bond, Intermediate Municipal Bond, Ohio
Municipal Bond and Michigan Municipal Bond were liquidated May 11, 2007 and for
the remaining funds, Advisor shares outstanding on November 26, 2007 were
exchanged for Class A shares of their respective funds. No Financial Highlights
information is presented for Advisor Shares. Certain activity regarding Advisor
shares for the period from August 1, 2007 through November 26, 2007 is included
in the Statements of Operations, Statements of Changes in Net Assets and these
Notes to Financial Statements. All Funds' Class B shares are closed for
purchases as of this report date. Class A shares are subject to initial sales
charges imposed at the time of purchase, as described in the Funds' prospectus.
Certain redemptions of each of Class A shares made within eighteen months of
purchase, Class B
165
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
shares made within six years of purchase and Class C shares made within one year
of purchase are subject to contingent deferred sales charges, as described in
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, and Class C 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
may enter into contracts with their vendors and others that provide for the
general indemnification of Trustees and Officers. 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.
Fund Mergers--On November 16, 2007, certain funds of the Trust (each an
"Acquiring Fund") acquired the respective net assets of certain other funds of
the Trust (each an "Acquired Fund"), pursuant to Agreements and Plans of
Reorganization approved by shareholders of each respective Acquired Fund on
November 16, 2007 (the Closing and Shareholder Meeting Dates). The acquisitions
were accomplished by a tax-free exchange of shares of each class of each
Acquiring Fund for the corresponding class of the corresponding Acquired Fund as
of the Closing Date. Information about the combining funds as of this date is as
follows; the shares issued by each Acquiring Fund are disclosed in the
Statements of Changes in Net Assets.
Net Assets as of
Fund Description November 16, 2007
- ---- ------------------ -----------------
Mid Cap Growth Acquiring Fund $ 329,322
Technology Acquired Fund 13,194
----------
Mid Cap Growth After Acquisition $ 342,516
==========
Total Return Bond Acquiring Fund $ 237,605
Intermediate Bond Acquired Fund 447,871
U.S. Government Bond Acquired Fund 26,140
----------
Total Return Bond After Acquisition $ 711,616
==========
The components of net assets of each Acquired Fund as of November 16, 2007 were
as follows:
Components of Net Assets Acquired Technology Intermediate Bond U.S. Government Bond
- --------------------------------- ---------- ----------------- --------------------
Paid-in capital $ 49,198 $ 507,777 $ 27,002
Accumulated net investment loss (71) (42) (89)
Accumulated net realized loss on investments (37,128) (41,849) (1,006)
Net unrealized appreciation (depreciation)
on investments 1,195 (18,015) 233
---------- ------------ ----------
Total net assets $ 13,194 $ 447,871 $ 26,140
========== ============ ==========
Capital losses of the Acquired Funds are carried over to the Acquiring Fund on
Closing Date. The Internal Revenue Code limits the ability of Acquiring Funds to
utilize capital losses of Acquired Funds.
(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.
166
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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. government 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 investment adviser's 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 such securities 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 investments on their primary markets or
exchanges.
The market value of fair valued securities as a percentage of total net assets
as of this report date was 5.5%, 1.4%, 95.1%,14.9% and .1% for Balanced,
Strategic Income, International Equity, Total Return 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. ("FTAM" or the "Advisor") to be
creditworthy pursuant to guidelines and/or standards reviewed or established by
the Trustees. It is the policy of the Funds to require the custodian or
sub-custodian bank to take possession, 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 relevant repurchase agreement transaction. Risks may arise from
the potential inability or unwillingness of counterparties to honor the terms of
a 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 an 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.
167
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
Foreign Currency Translation--International Equity does not isolate that portion
of its 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 Foreign Currency Contracts--International Equity may enter into forward
foreign currency contracts ("forwards"), which are agreements between two
parties to buy and sell a currency at a set price on a future date. The market
value of a forward fluctuates with changes in currency exchange rates. A 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 or unwilling to meet the terms of a
forward or if the value of the currency changes unfavorably. International
Equity has segregated cash and/or securities in a sufficient amount as
collateral to the extent the Fund has open forward contracts as of this report
date. See Notes to Schedules of 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 or unwillingness of counterparties to meet the terms of
their commitments and from unanticipated movements in security prices or foreign
exchange rates. 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.
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 or interest
rate 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 a Fund 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 Fund's 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
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 relevant 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
168
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
purchase cost for a written put option is adjusted by the amount of premium
received or paid. See Notes to Schedules of Investments.
Short Sales--Structured Large Cap Plus 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. The
Fund also may short 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 Schedule of
Investments.
Swap Agreements--The Funds may enter into swap transactions, which are privately
negotiated agreements between a Fund and a counterparty (usually a
broker-dealer) to exchange or swap investment cash flows, assets, or
market-linked returns at specified, future intervals. A Fund may enter into
interest rate, total return, credit default, and other forms of swap agreements
to manage its exposure to interest rates and credit risk. In connection with
these agreements, securities may be identified as collateral in accordance with
the terms of the respective swap agreements. Total Return Bond has entered into
a credit default swap agreement with a recognized counterparty.
Credit default swap agreements involve one party making a stream of payments to
another party in exchange for the right to receive a specified return in the
event of a default by a third party - typically, a corporate issuer or sovereign
issuer of an emerging country - on its obligation. A Fund may use credit default
swaps to provide a measure of protection against defaults of the issuers (i.e.,
to reduce risk where a Fund owns or has exposure to the issuer) or to take an
active long or short position with respect to the likelihood of a particular
issuer's default. When it is a seller of protection, a Fund generally receives
an upfront payment or a fixed rate of income throughout the term of the swap,
provided that there is no credit event. If a Fund is a seller of protection and
a credit event occurs, as defined under the terms of the particular swap
agreement, a Fund must pay to the buyer of the protection an amount up to the
notional value of the swap and, in certain instances, take delivery of the
security. As the seller, a Fund would effectively add leverage to its portfolio
because, in addition to its total net assets, a Fund would be subject to
investment exposure on the notional amount of the swap. When it is a buyer of
protection, a Fund generally receives an amount up to the notional value of the
swap if a credit event occurs. The treatment of credit default swaps and other
swap agreements that provide for contingent, non-periodic, "bullet-type"
payments as "notional principal contracts" for U.S. federal income tax purposes
is uncertain. If the U.S. Internal Revenue Service were to take the position
that a credit default swap or other bullet-type swap is not a "notional
principal contract" for U.S. federal income tax purposes, payments received by a
Fund from such investments may be subject to U.S. excise or income taxes.
Swaps are marked to market daily based upon quotations from market makers and
the change in value, if any, is recorded as unrealized gain or loss in the
Statements of Operations. Payments received or made at the beginning of the
measurement period are reflected as such in the Statements of Assets and
Liabilities. These upfront payments are recorded as realized gain or loss in the
Statements of Operations upon termination or maturity of the swap. A liquidation
payment received or made at the termination of the swap is recorded as realized
gain or loss in the Statements of Operations. Net periodic payments received or
paid by a Fund are included in realized gain or loss in the Statements of
Operations. Entering into swap agreements involves, to varying degrees, elements
of credit, market and documentation risk in excess of the amounts recognized in
the Statements of Assets and Liabilities. Such risks involve the possibility
that there will be no liquid market for
169
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
these agreements, that the counterparty to the agreements may default on its
obligation to perform or that the parties may disagree as to the meaning of
contractual terms in the agreements, and that there may be unfavorable changes
in interest rates.
When-Issued and Delayed Delivery Transactions ("TBAs")--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
Investments.
Lending Portfolio Securities--Each Fund may lend securities up to 33 1/3% of the
Fund's total assets (plus the amount of securities out on loan) to qualified
borrowers (typically broker-dealers) in order to enhance fund earnings by
investing cash collateral received in making such loans. The Funds continue to
earn interest and dividends on securities loaned by way of receiving substitute
payments (substitute dividend payments are generally not classified as Qualified
Dividend Income for federal income tax purposes). Loans will be made only to
borrowers deemed by the Lending Agent to be of sufficiently strong financial
standing, organizational stability and creditworthiness under guidelines
established by the Trustees and when, in the judgment of the Lending Agent, the
consideration that can be earned currently from such securities loans justifies
the attendant risks.
The Trust has engaged its custodian bank, State Street Bank and Trust Company
("State Street"), to act as lending agent and to administer its securities
lending program, however the Funds have not commenced lending securities during
the period ended as of this report date. State Street will earn a portion of
program net income for its services. When a Fund makes a security loan, it
receives cash collateral as protection against borrower default on the loaned
security position and records an asset for the cash/invested collateral and a
liability for the return of the collateral. Securities on loan continue to be
included in investment securities at market value on the Statements of Assets
and Liabilities and remain on the Schedule of Investments.
Loans of securities are required at the time the loan is made to be secured by
collateral at least equal to 105% of the prior day's market value of loaned
equity securities not denominated in U.S. dollars or Canadian dollars or not
primarily traded on a U.S. exchange; or 102% of the prior day's market value of
the securities on loan (including accrued interest) of any other loaned
securities, and not less than 100% thereafter. The Funds may invest cash
collateral in short-term money market instruments including: U.S. Treasury
Bills, U.S. agency sponsored obligations, commercial paper, money market mutual
funds, repurchase agreements and other highly rated, liquid investments. During
the life of securities loans, the collateral and securities loaned remain
subject to fluctuation in market value. State Street marks to market securities
loaned and the collateral each business day. If additional collateral is due,
State Street collects additional cash collateral from the borrowers. Although
securities loaned will be fully collateralized at all times, State Street may
experience delays in, or may be prevented from, recovering the collateral on
behalf of a Fund. State Street may on behalf of a Fund recall a loaned security
position at any time from a borrower, who is obligated to return the security
recalled. In the event the borrower fails to return a recalled security in a
timely fashion, State Street reserves the right to use the collateral to
purchase like securities in the open market. State Street indemnifies the Funds
against borrower default by agreeing to fund any shortfall between the
collateral held and the cost of obtaining replacement securities. If replacement
securities are not available, State Street will credit the equivalent cash value
to the Fund(s).
Other--Expenses directly attributable to a Fund are charged to the Fund, while
expenses which are attributable to more than one Fund of the Trust are allocated
among the respective Funds based on their relative net assets or another
appropriate basis. Income, expenses, and realized and unrealized gains or losses
on investments are allocated to each class of shares based on its relative net
assets, except that each class separately bears expenses related specifically to
that class, such as administrative and distribution fees.
170
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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
Total Return Bond Quality Growth Small Cap Value
Short Term Bond Structured Large Cap Plus International Equity
Municipal Bond Equity Index
Intermediate Municipal Bond Balanced
Ohio Municipal Bond Micro Cap Value
Michigan Municipal Bond All Cap Value
Disciplined Large Cap Value
The LifeModel Funds(SM)
Dividend Growth
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.
Federal Taxes--It is the intention 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 U.S. Internal Revenue Code, and to make distributions of net investment
income and net realized capital gains sufficient to relieve a Fund from all, or
substantially all, federal taxes. Accordingly, no provision for federal income
or excise taxes has been made.
The Financial Accounting Standards Board ("FASB") issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement
No. 109 ("FIN 48"), in June 2006. FIN 48 permits the recognition of tax benefits
of an uncertain tax position only when the position is "more likely than not" to
be sustained assuming examination by taxing authorities. The Funds adopted the
provisions of FIN 48 on August 1, 2007. Management has reviewed the Funds' tax
positions for all open tax years, and concluded that adoption had no effect on
each Fund's financial position or results of operations. At January 31, 2008,
the Funds have recorded no liability for net unrecognized tax benefits relating
to uncertain income tax positions taken or expected to be taken in future tax
returns.
The Funds file U.S. tax returns and returns in various foreign jurisdictions in
which they invest. While the statute of limitations remains open to examine the
Funds' U.S. tax returns filed for the fiscal years from 2004-2007, no
examinations are in progress or anticipated as of this report date. The Funds
are not aware of any tax positions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will significantly change in the next
twelve months.
New Accounting Pronouncement--In September 2006, FASB issued Statement on
Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157").
This statement 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
171
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
this statement relate to the definition of fair value, the methods used to
measure fair value, and 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 the likely impact of FAS 157, as of this
report date, Management does not believe the adoption of FAS 157 will have an
impact on the financial statements. Additional disclosures may be required
however, relating to the inputs used to develop the measurements and the effect
of certain 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--FTAM 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
to the Funds, FTAM receives an investment advisory fee computed daily based on
each Fund's average daily net assets and paid monthly. Until November 28, 2007,
FTAM subcontracted with Morgan Stanley Investment Management Inc., which served
as International Equity's Sub-Advisor. Effective November 28, 2007 this
subadvisory arrangement was terminated and FTAM undertook full portfolio
management responsibilities for the Fund. Pursuant to a sub-advisory arrangement
with FTAM, Fort Washington Investment Advisors, Inc. is High Yield Bond's
Sub-Advisor. The Advisor compensates Fort Washington monthly at rates indicated
in the prospectus applied to the 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 fees, waivers and expense limitations.
Administration Fee--FTAM is the Trust's administrator (the "Administrator") and
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
For certain Funds, FTAM has voluntarily agreed to waive a portion of its
administration fee. In addition, a $10,000 annual, per class, per Fund fee
applies beyond the first four classes per Fund (only Equity Index has more than
four classes as of November 26, 2007), 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.
Advisory Fee, Waivers, Expense Limitations--In its capacity as Advisor and
Administrator, FTAM has 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
specified expense limit for the Fund, the excess amount will be borne by FTAM.
If the operating expenses are less than the specified expense limit for the
Fund, FTAM 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
the period for the 12 months commencing November 29, 2007 for the 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
172
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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
as of this report date are as follows:
Class Expense Limitation*
----------------------------------------------
Admini- Reimburse-
Advisory Expense stration ment
Advisory Fee Limitation Fee Recover-
Fund Fee Waiver ** Waiver Institutional A B C able***
- ---- -------- -------- ---------- -------- ------------- ------ ------ ----- ----------
Small Cap Growth 0.70% NA V NA 1.01% 1.26% 2.01% 2.01% NA
Mid Cap Growth 0.80% NA C NA 1.09% 1.34% 2.09% 2.09% $ 11
Quality Growth * 0.80% NA C 0.02% 1.06% 1.31% 2.06% 2.06% $ 49
Dividend Growth 0.80% 0.20% C NA 0.73% 0.98% 1.73% 1.73% $385
Micro Cap Value 1.00% NA V NA 1.35% 1.60% 2.35% 2.35% NA
Small Cap Value 0.90% NA V NA 1.20% 1.45% 2.20% 2.20% NA
All Cap Value 1.00% NA C 0.10% 1.19% 1.44% 2.19% 2.19% $ 99
Disciplined Large Cap Value 0.80% NA C 0.06% 1.01% 1.26% 2.01% 2.01% $ 69
Structured Large Cap Plus++ 0.70% NA C NA 0.92% 1.17% 1.92% 1.92% $270
Equity Index^ 0.30% 0.20% C 0.065% 0.19% 0.44% 1.19% 1.19% $294
Balanced 0.80% 0.20% V NA 0.96% 1.21% 1.96% 1.96% NA
International Equity ##* 1.00% 0.14% C NA 1.21% 1.46% 2.21% 2.21% $108
Strategic Income 1.00% 0.30% C 0.05% 0.96% 1.21% 1.96% 1.96% $ 95
LifeModel Aggressive(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $115
LifeModel Moderately Aggressive(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $210
LifeModel Moderate(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $256
LifeModel Moderately Conservative(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 58
LifeModel Conservative(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 35
High Yield Bond 0.70% NA C NA 0.74% 0.99% 1.74% 1.74% $ 31
Total Return Bond * 0.60% 0.10% C 0.08% 0.68% 0.93% 1.68% 1.68% $192
Short Term Bond 0.50% 0.10% V NA 0.64% 0.89% NA 1.64% NA
Municipal Bond 0.55% 0.15% V NA 0.61% 0.86% 1.61% 1.61% NA
Intermediate Municipal Bond * 0.55% 0.15% V 0.06% 0.65% 0.90% 0.90%# 1.65% NA
Ohio Municipal Bond 0.55% NA V 0.08% 0.79% 1.04% 1.79% 1.79% NA
Michigan Municipal Bond 0.45% NA C NA 0.68% 0.83%# 1.68% 1.68% $ 24
* The Funds' expense limitation for each class decreased by the following
annual amounts during the period ended as of this report date. FTAM often
accompanies a decrease in limitation with a corresponding increase in an
advisory or administration waiver.
Fund Decrease in Limitation Effective Date
---- ---------------------- -----------------
Quality Growth 0.01% November 17, 2007
International Equity 0.14% November 29, 2007
Total Return Bond 0.04% November 17, 2007
Intermediate Municipal Bond 0.02% November 17, 2007
** C - Contractual, V - Voluntary as of November 29, 2007.
*** The cumulative amounts waived and/or reimbursed in thousands and which may
be potentially recoverable by FTAM under the expense limitation agreements
for the period from November 29, 2007 through January 31, 2008. For
Dividend Growth, this amount represents the period from August 1, 2005
through January 31, 2008.
++ Because dividend expenses on short sales are excluded from this fund's
expense limitation, Net Expenses are expected to exceed the applicable
expense limitation by the estimated amount of dividend expense on short
sales.
^ The annual 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.
## International Equity's Advisory Fee is 0.85% for net assets in excess of
$750 million.
# 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 annual 12b-1 fee as follows:
Intermediate Municipal Bond Fund Class B - 0.75%; Michigan Municipal Bond
Fund Class A - 0.10%.
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% In excess of $500 million up to $1 billion
0.010% In excess of $1 billion
173
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
In addition, a $10,000 annual flat per class, per fund fee applies beyond the
initial class of shares.
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
Distribution and/or Servicing Fees, Waivers--The Trust has adopted a
Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. FTAM Funds
Distributor, Inc. is the Trust's distributor/principal underwriter (the
"Distributor"). Under the terms of the Plan, the Funds will compensate the
Distributor from the net assets of the Funds' Class A, Class B and Class C
shares to finance activities intended to result in the sales of each Fund's
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. The Distributor
has voluntarily agreed to limit the expenses of certain classes of certain funds
by way of waiving a portion of the Distribution and/or Servicing Fee; annual
12b-1 fees and voluntary waivers are shown below.
Class Distribution/Servicing Fee Distribution/Servicing Fee Waiver
----- -------------------------- -----------------------------------
Class A 0.25% 0.10% - Michigan Municipal Bond
Class B 1.00% 0.75% - Intermediate Municipal Bond
Class C 0.75% NA
Advisor 0.50% NA
In addition, the Distributor earned commissions on certain sales of Class A and
Advisor shares (most of which commissions are reallowed to the selling
broker-dealer) as well as contingent deferred sales commissions (CDSC) 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). FTAM is the Class C advance commission finance agent. CDSCs on Class C
shares for the period ended as of this report date were $6,920, a majority of
which was attributed to FTAM. Affiliates of FTAM earned reallowed sales
commissions of $264,093 and 12b-1 distribution/servicing fees as well as
administrative servicing fees (see below) of $1,977,516 for the period ended as
of the report date.
Administrative Servicing Fee--The Trust has an Administrative Servicing
Agreement with the Distributor with respect to Class C, Select, Preferred and
Trust Shares. Under the Agreements, certain administrative services, including
those relating to the maintenance of shareholder accounts, were provided to
these shareholders during the year. The Distributor, as well as other financial
institutions (which may include affiliates of the Advisor) receive 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--Pursuant to a Services Agreement with
the Trust dated May 14, 2007, FTAM provides certain services on behalf of the
Trust. Under this agreement, FTAM's fees are paid monthly and are accrued daily
based upon each Fund of the Trust's relative average daily net assets, at the
aggregate annual rate of $370,000. FTAM earned $185,000 in service fees for the
period ended as of this report date.
Other--Certain officers of the Trust are also officers of FTAM and/or its
affiliates. Effective June 28, 2007, certain non-principal officers of the Trust
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
174
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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. The amounts paid to each Fund
are disclosed in the Statements of Changes in Net Assets as Increase from
payment by the Advisor for the fiscal year ended July 31, 2007. The amounts were
allocated among the components of net assets for the year then ended for each
applicable Fund based upon its character for federal income tax purposes. The
total returns for the year ended July 31, 2007 for each class of the applicable
Funds would have been lower had the payments not been made; see Notes to
Financial Highlights.
(4) Investment Transactions
Cost of purchases and proceeds from sales of investments (excluding short-term
securities) for the period ended as of this report date were as follows:
Non U.S. Government Securities U.S. Government Securities
------------------------------ --------------------------
Fund Purchases Sales Purchases Sales
- ---- --------- -------- --------- -------
Small Cap Growth $ 57,432 $ 89,326 $ -- $ --
Mid Cap Growth 166,007 173,271 -- --
Quality Growth 161,509 212,366 -- --
Dividend Growth 90,389 9,834 -- --
Micro Cap Value 17,446 39,413 -- --
Small Cap Value 25,050 47,941 -- --
All Cap Value 71,597 98,645 -- --
Disciplined Large Cap Value 116,812 177,688 -- --
Structured Large Cap Plus 111,350 179,407 -- --
Equity Index 9,789 18,641 -- --
Balanced 8,463 31,616 555 5,035
International Equity 425,116 501,297 -- --
Strategic Income 18,952 34,372 2,998 1,228
LifeModel Aggressive(SM) 30,576 18,610 -- --
LifeModel Moderately Aggressive(SM) 44,291 35,778 -- --
LifeModel Moderate(SM) 64,489 56,566 -- --
LifeModel Moderately Conservative(SM) 11,425 11,754 -- --
LifeModel Conservative(SM) 9,467 5,643 -- --
High Yield Bond 9,919 25,431 -- --
Total Return Bond 343,344 26,641 180,225 42,122
Short Term Bond 14,873 16,886 22,822 27,051
Municipal Bond 15,921 19,987 -- 1,040
Intermediate Municipal Bond 35,566 51,535 -- --
Ohio Municipal Bond 21,982 30,930 -- --
Michigan Municipal Bond 8,649 11,693 -- --
(5) Line of Credit
As of February 1, 2008, the Funds of the Trust have an uncommitted unsecured
line of credit facility with State Street. Under the terms of the agreement, the
Funds of the Trust may borrow up to $100 million in the aggregate. The purpose
of the facility is to borrow funds if necessary to meet temporary or emergency
cash needs, including to fund redemption requests that might otherwise require
the untimely disposition of securities. Borrowings may not exceed 33 1/3%
(except that with respect to Structured Large Cap Plus, borrowings may not
exceed 10% of the Funds' net assets) of the Fund's net assets and must be repaid
within 60
175
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
days. Drawn loans will be priced at a bid rate, though, in any event, not less
than State Street's overnight federal funds annual rate plus the annual rate of
0.50%.
(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 Year ended July 31, 2006 #
-------------------------------------------------- ----------------------------------------
Distributions paid from Distributions paid from
-------------------------------------------------- ----------------------------------------
Net Net
Long Long
Term Tax Return Total Term Tax Total
Ordinary Capital Exempt of Distributions Ordinary Capital Exempt Distributions
Fund Income Gains Income Capital Paid Income Gains Income Paid
- ---- --------- ------- ------ ------- ------------- -------- ------- ------ -------------
Small Cap Growth $ 3,010 $30,186 $ -- $ -- $33,196 $ -- $22,453 $ -- $22,453
Mid Cap Growth -- 74,694 -- -- 74,694 -- 4,993 -- 4,993
Quality Growth 3,228 10,916 -- -- 14,144 -- -- -- --
Structured Large Cap Plus 1,608 758 -- -- 2,366 1,931 2,280 -- 4,211
Equity Index 7,235 -- -- -- 7,235 7,005 -- -- 7,005
Balanced 1,748 -- -- -- 1,748 1,844 -- -- 1,844
Micro Cap Value 2,786 22,169 -- -- 24,955 91 42,152 -- 42,243
Small Cap Value 8,327 8,286 -- -- 16,613 8,884 5,923 -- 14,807
Multi Cap Value 8,223 50,068 -- -- 58,291 2,972 27,741 -- 30,713
Disciplined Large Cap Value 16,306 81,738 -- -- 98,044 17,021 48,765 -- 65,786
LifeModel Aggressive(SM) 1,226 5,019 -- -- 6,245 1,846 3,132 -- 4,978
LifeModel Moderately Aggressive(SM) 5,443 8,048 -- -- 13,491 6,436 5,004 -- 11,440
LifeModel Moderate(SM) 14,207 10,616 -- -- 24,823 12,720 8,544 -- 21,264
LifeModel Moderately Conservative(SM) 3,085 2,514 -- -- 5,599 2,949 2,257 -- 5,206
LifeModel Conservative(SM) 1,983 972 -- -- 2,955 2,027 448 -- 2,475
Strategic Income 7,384 1,526 -- -- 8,910 6,797 472 -- 7,269
Dividend Growth 496 -- -- -- 496 237 -- -- 237
International Equity 3,962 9,030 -- -- 12,992 7,124 10,140 -- 17,264
High Yield Bond 4,851 -- -- -- 4,851 2,432 -- -- 2,432
Bond 12,928 -- -- -- 12,928 13,862 697 -- 14,559
Intermediate Bond 22,513 -- -- 164 22,677 23,971 -- -- 23,971
Short Term Bond 10,846 -- -- 234 11,080 11,893 -- -- 11,893
U.S. Government Bond 1,825 -- -- -- 1,825 1,998 153 -- 2,151
Municipal Bond 9 437 1,637 -- 2,083 160 2,043 1,786 3,989
Intermediate Municipal Bond 42 492 5,693 -- 6,227 748 1,654 6,615 9,017
Ohio Municipal Bond 54 110 3,641 -- 3,805 43 275 4,334 4,652
Michigan Municipal Bond 10 -- 1,547 -- 1,557 -- -- 1,881 1,881
# Represents distributions on a cash basis.
176
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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
177
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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 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) Restricted Securities
The Funds may own investments that were purchased through private placement
transactions or under Rule 144A of the Securities Act of 1933 (the "Securities
Act") and which cannot be sold without prior registration under the Securities
Act or which may be limited due to certain restrictions. These securities are
generally deemed to be illiquid and are valued at fair value as determined by
FTAM's Pricing Committee, comprised of personnel of the Advisor, subject to
oversight by the Board of Directors, and in accordance with Board-approved
Pricing Policies and Procedures. If and when such securities are registered, the
costs of registering such securities are paid by the issuer. At January 31,
2008, Total Return Bond held the following restricted securities:
Value as
Acquisition Acquisition % of
Security Type Date Cost Fair Value Net Assets
-------------------------- ----------- ----------- ----------- ----------
Total Return Bond
Attentus CDO, Ltd., Series 2006-2A Asset-Backed Securities 08/31/2006 $ 5,000,000 $ 750,000 0.10%
Deutsche Mortgage Securities, Inc.,
Series 2005-WF1 Mortgage-Backed Securities 09/16/2005 1,296,694 1,297,818 0.19%
Restructured Assets Certificates,
Series 2006-9 Mortgage-Backed Securities 08/10/2006 5,234,953 4,410,000 0.63%
Squared CDO, Ltd., Series 2007-1A Mortgage-Backed Securities 05/01/2007 3,955,319 200,000 0.03%
$ 5,000,000 $ 6,657,818 0.95%
(8) Concentrations
International Equity invests in equity and fixed income securities of non-U.S.
issuers. Although the Fund maintains a diversified investment portfolio,
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
adverse effect on the liquidity and volatility of portfolio securities and
currency holdings.
178
Fifth Third Funds
Notes to Financial Statements, continued
January 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------
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 as of this report date. 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.
(9) Subsequent Event
Fund Merger--At a special meeting of the Board of Trustees on August 7, 2007,
the Trustees approved an Agreement and Plan of Reorganization (the "Plan"),
which proposed consolidation of Balanced into Quality Growth whereby Quality
Growth would acquire the net assets of Balanced. These Funds filed a combined
proxy/prospectus filing with the Securities and Exchange Commission on August
30, 2007, indicating a shareholder meeting to be held on or about November 16,
2007. The Shareholder meeting was adjourned to February 8, 2008, and again to
February 22, 2008, at which date a majority of shareholders of Balanced approved
the merger and was effected after the close of business. The total net assets of
Balanced which were acquired by Quality Growth were $35,333 in thousands as of
February 22, 2008.
179
Fifth Third Funds
Supplemental Information (Unaudited)
- --------------------------------------------------------------------------------
RESULTS OF SHAREHOLDER PROXY
At a special meeting of shareholders of the Fifth Third Technology Fund (the
"Technology Fund"), a series of the Fifth Third Funds (the "Trust") held on
November 16, 2007, the results of the proposal were as follows:
Proposal: To approve an Agreement and Plan of Reorganization providing for the
transfer of all of the assets of the Technology Fund to the Fifth Third Mid Cap
Growth Fund.
Votes
--------------------------------------
Affirmative 2,620,763
Against 89,518
Abstain 179,827
Broker non-votes 0
At a special meeting of shareholders of the Fifth Third Intermediate Bond Fund
(the "Intermediate Bond Fund"), a series of the Trust held on November 16, 2007,
the results of the proposal were as follows:
Proposal: To approve an Agreement and Plan of Reorganization providing for the
transfer of all of the assets of the Intermediate Bond Fund to the Fifth Third
Bond Fund.
Votes
--------------------------------------
Affirmative 27,361,756
Against 373,776
Abstain 17,461
Broker non-votes 0
At a special meeting of shareholders of the Fifth Third U.S. Government Bond
Fund (the "U.S. Government Bond Fund"), a series of the Trust held on November
16, 2007, the results of the proposal were as follows:
Proposal: To approve an Agreement and Plan of Reorganization providing for the
transfer of all of the assets of the U.S. Government Bond Fund to the Fifth
Third Bond Fund.
Votes
--------------------------------------
Affirmative 1,858,650
Against 103,918
Abstain 12,141
Broker non-votes 0
180
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 August 1, 2007 through January 31,
2008.
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
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------- ---------- ---------------- ----------------
Small Cap Growth Institutional Shares $ 1,000.00 $ 907.20 $ 4.89 1.02%
Class A Shares 1,000.00 907.10 6.04 1.27%
Class B Shares 1,000.00 902.60 9.61 2.01%
Class C Shares 1,000.00 902.80 9.61 2.01%
Mid Cap Growth Institutional Shares 1,000.00 934.90 5.30 1.09%
Class A Shares 1,000.00 934.70 6.52 1.35%
Class B Shares 1,000.00 933.20 10.20 2.10%
Class C Shares 1,000.00 925.60 10.16 2.10%
Quality Growth Institutional Shares 1,000.00 1,022.80 5.44 1.07%
Class A Shares 1,000.00 1,021.60 6.66 1.32%
Class B Shares 1,000.00 1,017.80 10.50 2.07%
Class C Shares 1,000.00 1,017.70 10.50 2.07%
Dividend Growth Institutional Shares 1,000.00 999.70 3.67 0.73%
Class A Shares 1,000.00 998.30 4.87 0.98%
Class B Shares 1,000.00 994.60 8.67 1.73%
Class C Shares 1,000.00 994.60 8.67 1.73%
Micro Cap Value Institutional Shares 1,000.00 861.50 6.36 1.36%
Class A Shares 1,000.00 860.40 7.48 1.61%
Class B Shares 1,000.00 856.70 10.97 2.35%
Class C Shares 1,000.00 856.70 10.97 2.35%
Small Cap Value Institutional Shares 1,000.00 940.60 5.80 1.19%
Class A Shares 1,000.00 939.40 7.02 1.45%
Class B Shares 1,000.00 936.00 10.71 2.20%
Class C Shares 1,000.00 935.90 10.71 2.20%
Alli Cap Value Institutional Shares 1,000.00 914.70 5.73 1.19%
Class A Shares 1,000.00 913.70 6.93 1.45%
Class B Shares 1,000.00 910.20 10.56 2.20%
Class C Shares 1,000.00 910.30 10.52 2.19%
Disciplined Large Cap Value Institutional Shares 1,000.00 944.70 4.94 1.01%
Class A Shares 1,000.00 943.90 6.11 1.26%
Class B Shares 1,000.00 939.90 9.80 2.01%
Class C Shares 1,000.00 940.20 9.80 2.01%
- ----------
* Expenses are equal to the average account value times the Fund's
annualized expense ratio multiplied by the number of days in the most
recent fiscal half-year divided by the number of days in the fiscal year.
181
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
Expense Expense
Beginning Ending Paid Ratio
Account Account During During
Value Value Period* Period
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------- ---------- ---------------- ----------------
Structured Large Cap Plus Institutional Shares $ 1,000.00 $ 941.00 $ 4.49 0.92%
Class A Shares 1,000.00 938.90 5.70 1.17%
Class B Shares 1,000.00 936.20 9.34 1.92%
Class C Shares 1,000.00 935.70 9.29 1.92%
Equity Index Institutional Shares 1,000.00 955.90 0.93 0.19%
Class A Shares 1,000.00 954.50 2.11 0.44%
Class B Shares 1,000.00 951.00 5.84 1.19%
Class C Shares 1,000.00 951.00 5.84 1.19%
Select shares 1,000.00 955.40 1.33 0.27%
Preferred Shares 1,000.00 955.10 1.67 0.34%
Trust Shares 1,000.00 954.60 2.16 0.44%
Balanced Institutional Shares 1,000.00 1,028.60 4.90 0.96%
Class A Shares 1,000.00 1,027.20 6.11 1.21%
Class B Shares 1,000.00 1,023.60 9.97 1.96%
Class C Shares 1,000.00 1,023.50 9.97 1.96%
International Equity Institutional Shares 1,000.00 948.40 6.37 1.30%
Class A Shares 1,000.00 946.40 7.53 1.55%
Class B Shares 1,000.00 943.50 11.24 2.30%
Class C Shares 1,000.00 943.40 11.24 2.30%
Strategic Income Institutional Shares 1,000.00 1,013.80 4.86 0.96%
Class A Shares 1,000.00 1,012.60 6.02 1.20%
Class B Shares 1,000.00 1,008.70 9.90 1.96%
Class C Shares 1,000.00 1,008.80 9.90 1.96%
LifeModel Aggressive(SM) Institutional Shares 1,000.00 960.20 0.39 0.08%
Class A Shares 1,000.00 958.20 1.58 0.33%
Class B Shares 1,000.00 954.70 5.31 1.08%
Class C Shares 1,000.00 953.60 5.30 1.08%
LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 974.20 0.40 0.08%
Class A Shares 1,000.00 972.80 1.59 0.33%
Class B Shares 1,000.00 968.80 5.34 1.08%
Class C Shares 1,000.00 969.40 5.35 1.08%
LifeModel Moderate(SM) Institutional Shares 1,000.00 988.80 0.40 0.08%
Class A Shares 1,000.00 988.20 1.60 0.33%
Class B Shares 1,000.00 984.10 5.39 1.08%
Class C Shares 1,000.00 984.10 5.39 1.08%
LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 996.10 0.40 0.08%
Class A Shares 1,000.00 994.90 1.60 0.33%
Class B Shares 1,000.00 991.70 5.41 1.08%
Class C Shares 1,000.00 991.70 5.41 1.08%
LifeModel Conservative(SM) Institutional Shares 1,000.00 1,008.40 0.40 0.08%
Class A Shares 1,000.00 1,007.10 1.61 0.33%
Class B Shares 1,000.00 1,003.90 5.44 1.08%
Class C Shares 1,000.00 1,003.70 5.44 1.08%
- ----------
* 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.
182
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
Expense Expense
Beginning Ending Paid Ratio
Account Account During During
Value Value Period* Period
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------- ---------- ---------------- ----------------
High Yield Bond Institutional Shares $ 1,000.00 $ 1,025.60 $ 3.77 0.74%
Class A Shares 1,000.00 1,021.80 4.98 1.00%
Class B Shares 1,000.00 1,019.80 8.83 1.74%
Class C Shares 1,000.00 1,020.40 8.84 1.74%
Total Return Bond Institutional Shares 1,000.00 1,044.20 3.60 0.70%
Class A Shares 1,000.00 1,042.90 4.83 0.95%
Class B Shares 1,000.00 1,038.70 8.71 1.70%
Class C Shares 1,000.00 1,039.50 8.66 1.69%
Short Term Bond Institutional Shares 1,000.00 1,042.90 3.29 0.64%
Class A Shares 1,000.00 1,041.60 4.52 0.89%
Class C Shares 1,000.00 1,037.90 8.40 1.64%
Municipal Bond Institutional Shares 1,000.00 1,038.80 3.13 0.61%
Class A Shares 1,000.00 1,037.30 4.35 0.86%
Class B Shares 1,000.00 1,033.50 8.23 1.61%
Class C Shares 1,000.00 1,033.50 8.23 1.61%
Intermediate Municipal Bond Institutional Shares 1,000.00 1,046.70 3.40 0.66%
Class A Shares 1,000.00 1,045.40 4.63 0.91%
Class B Shares 1,000.00 1,044.50 4.68 0.91%
Class C Shares 1,000.00 1,041.40 8.52 1.66%
Ohio Municipal Bond Institutional Shares 1,000.00 1,045.80 4.06 0.79%
Class A Shares 1,000.00 1,044.40 5.29 1.04%
Class B Shares 1,000.00 1,040.50 9.18 1.79%
Class C Shares 1,000.00 1,040.70 9.18 1.79%
Michigan Municipal Bond Institutional Shares 1,000.00 1,044.70 3.49 0.68%
Class A Shares 1,000.00 1,043.80 4.21 0.83%
Class B Shares 1,000.00 1,039.50 8.61 1.68%
Class C Shares 1,000.00 1,039.30 8.61 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.
183
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may however use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Expense Expense
Beginning Ending Paid Ratio
Account Account During During
Value Value Period* Period
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------- ---------- ---------------- ----------------
Small Cap Growth Institutional Shares $ 1,000.00 $ 1,020.12 $ 5.21 1.02%
Class A Shares 1,000.00 1,018.90 6.43 1.27%
Class B Shares 1,000.00 1,015.11 10.24 2.01%
Class C Shares 1,000.00 1,015.11 10.24 2.01%
Mid Cap Growth Institutional Shares 1,000.00 1,019.76 5.56 1.09%
Class A Shares 1,000.00 1,018.50 6.84 1.35%
Class B Shares 1,000.00 1,014.66 10.69 2.10%
Class C Shares 1,000.00 1,014.66 10.69 2.10%
Quality Growth Institutional Shares 1,000.00 1,019.86 5.46 1.07%
Class A Shares 1,000.00 1,018.65 6.68 1.32%
Class B Shares 1,000.00 1,014.81 10.54 2.07%
Class C Shares 1,000.00 1,014.81 10.54 2.07%
Dividend Growth Institutional Shares 1,000.00 1,021.58 3.73 0.73%
Class A Shares 1,000.00 1,020.37 4.95 0.98%
Class B Shares 1,000.00 1,016.53 8.82 1.73%
Class C Shares 1,000.00 1,016.53 8.82 1.73%
Micro Cap Value Institutional Shares 1,000.00 1,018.40 6.94 1.36%
Class A Shares 1,000.00 1,017.19 8.16 1.61%
Class B Shares 1,000.00 1,013.39 11.96 2.35%
Class C Shares 1,000.00 1,013.39 11.96 2.35%
Small Cap Value Institutional Shares 1,000.00 1,019.26 6.07 1.19%
Class A Shares 1,000.00 1,017.99 7.34 1.45%
Class B Shares 1,000.00 1,014.15 11.20 2.20%
Class C Shares 1,000.00 1,014.15 11.20 2.20%
All 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 1.45%
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%
Disciplined Large Cap Value Institutional Shares 1,000.00 1,020.17 5.16 1.01%
Class A Shares 1,000.00 1,018.95 6.38 1.26%
Class B Shares 1,000.00 1,015.11 10.24 2.01%
Class C Shares 1,000.00 1,015.11 10.24 2.01%
- ----------
* Expenses are equal to the average account value times the Fund's
annualized expense ratio multiplied by the number of days in the most
recent fiscal half-year divided by the number of days in the fiscal year.
184
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
Expense Expense
Beginning Ending Paid Ratio
Account Account During During
Value Value Period* Period
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------- ---------- ---------------- ----------------
Structured Large Cap Plus Institutional Shares $ 1,000.00 $ 1,020.62 $ 4.70 0.92%
Class A Shares 1,000.00 1,019.36 5.97 1.17%
Class B Shares 1,000.00 1,015.57 9.78 1.92%
Class C Shares 1,000.00 1,015.62 9.73 1.92%
Equity Index Institutional Shares 1,000.00 1,024.18 0.97 0.19%
Class A Shares 1,000.00 1,022.97 2.19 0.44%
Class B Shares 1,000.00 1,019.15 6.04 1.19%
Class C Shares 1,000.00 1,019.15 6.04 1.19%
Select shares 1,000.00 1,023.78 1.37 0.27%
Preferred Shares 1,000.00 1,023.43 1.73 0.34%
Trust Shares 1,000.00 1,022.92 2.24 0.44%
Balanced Institutional Shares 1,000.00 1,020.42 4.90 0.96%
Class A Shares 1,000.00 1,019.21 6.12 1.21%
Class B Shares 1,000.00 1,015.37 9.98 1.96%
Class C Shares 1,000.00 1,015.37 9.98 1.96%
International Equity Institutional Shares 1,000.00 1,018.70 6.63 1.30%
Class A Shares 1,000.00 1,017.49 7.85 1.55%
Class B Shares 1,000.00 1,013.65 11.71 2.30%
Class C Shares 1,000.00 1,013.65 11.71 2.30%
Strategic Income Institutional Shares 1,000.00 1,020.42 4.90 0.96%
Class A Shares 1,000.00 1,019.26 6.07 1.20%
Class B Shares 1,000.00 1,015.37 9.98 1.96%
Class C Shares 1,000.00 1,015.37 9.98 1.96%
LifeModel Aggressive(SM) Institutional Shares 1,000.00 1,024.87 0.41 0.08%
Class A Shares 1,000.00 1,023.66 1.64 0.33%
Class B Shares 1,000.00 1,019.81 5.51 1.08%
Class C Shares 1,000.00 1,019.81 5.51 1.08%
LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 1,024.87 0.41 0.08%
Class A Shares 1,000.00 1,023.66 1.64 0.33%
Class B Shares 1,000.00 1,019.81 5.51 1.08%
Class C Shares 1,000.00 1,019.81 5.51 1.08%
LifeModel Moderate(SM) Institutional Shares 1,000.00 1,024.87 0.41 0.08%
Class A Shares 1,000.00 1,023.66 1.64 0.33%
Class B Shares 1,000.00 1,019.81 5.51 1.08%
Class C Shares 1,000.00 1,019.81 5.51 1.08%
LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 1,024.87 0.41 0.08%
Class A Shares 1,000.00 1,023.66 1.64 0.33%
Class B Shares 1,000.00 1,019.81 5.51 1.08%
Class C Shares 1,000.00 1,019.81 5.51 1.08%
LifeModel Conservative(SM) Institutional Shares 1,000.00 1,024.87 0.41 0.08%
Class A Shares 1,000.00 1,023.66 1.64 0.33%
Class B Shares 1,000.00 1,019.81 5.51 1.08%
Class C Shares 1,000.00 1,019.81 5.51 1.08%
- ----------
* 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.
185
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
Expense Expense
Beginning Ending Paid Ratio
Account Account During During
Value Value Period* Period
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------- ---------- ---------------- ----------------
High Yield Bond Institutional Shares $ 1,000.00 $ 1,021.53 $ 3.78 0.74%
Class A Shares 1,000.00 1,020.32 5.00 1.00%
Class B Shares 1,000.00 1,016.48 8.87 1.74%
Class C Shares 1,000.00 1,016.48 8.87 1.74%
Total Return Bond Institutional Shares 1,000.00 1,021.73 3.58 0.70%
Class A Shares 1,000.00 1,020.52 4.80 0.95%
Class B Shares 1,000.00 1,016.68 8.66 1.70%
Class C Shares 1,000.00 1,016.73 8.61 1.69%
Short Term Bond Institutional Shares 1,000.00 1,022.04 3.27 0.64%
Class A Shares 1,000.00 1,020.83 4.49 0.89%
Class C Shares 1,000.00 1,016.98 8.36 1.64%
Municipal Bond Institutional Shares 1,000.00 1,022.19 3.12 0.61%
Class A Shares 1,000.00 1,020.98 4.34 0.86%
Class B Shares 1,000.00 1,017.14 8.21 1.61%
Class C Shares 1,000.00 1,017.14 8.21 1.61%
Intermediate Municipal Bond Institutional Shares 1,000.00 1,021.94 3.37 0.66%
Class A Shares 1,000.00 1,020.72 4.60 0.91%
Class B Shares 1,000.00 1,020.67 4.65 0.91%
Class C Shares 1,000.00 1,016.88 8.46 1.66%
Ohio Municipal Bond Institutional Shares 1,000.00 1,021.28 4.04 0.79%
Class A Shares 1,000.00 1,020.07 5.26 1.04%
Class B Shares 1,000.00 1,016.23 9.12 1.79%
Class C Shares 1,000.00 1,016.23 9.12 1.79%
Michigan Municipal Bond Institutional Shares 1,000.00 1,021.84 3.47 0.68%
Class A Shares 1,000.00 1,021.13 4.19 0.83%
Class B Shares 1,000.00 1,016.78 8.56 1.68%
Class C Shares 1,000.00 1,016.78 8.56 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.
186
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
The Board of Trustees of Fifth Third Funds (the "Trust"), at a meeting held on
September 12, 2007, formally considered the Trust's investment advisory
agreement with Fifth Third Asset Management, Inc. ("FTAM" or the "Adviser") with
respect to all Funds of the Trust, a sub-advisory agreement of FTAM with Morgan
Stanley Investment Management Inc. ("MSIM" or the "Sub-Adviser") with respect to
the International Equity Fund and a sub-advisory agreement of FTAM with Fort
Washington Investment Advisors, Inc. ("Fort Washington" or, also a
"Sub-Adviser") (the "Sub-Advisers" collectively with the Adviser, the
"Advisers") with respect to the High Yield Bond Fund (collectively, the
"Advisory Agreements").
The Board of Trustees (the "Board" or the "Trustees") reviewed extensive
material in connection with their review of the Advisory Agreements, including
data compiled by Lipper, Inc. ("Lipper"), an independent source of mutual fund
data, which included comparisons with industry averages for comparable funds of
advisory fees, 12b-1 fees, administration fees, transfer agency fees, and total
fund expenses. The data reflected FTAM's fee waivers in place, as well as FTAM's
contractual advisory fees. FTAM also provided the Board with the results of a
three-pronged performance and expense test developed by FTAM. The Board received
reports from FTAM's Chief Investment Officer with respect to brokerage
practices, best execution, fund performance, and expense trends. The Board was
assisted in its review by independent legal counsel, who provided a memorandum
detailing the legal standards for review of the Advisory Agreements. The Board
received a detailed presentation by FTAM, which included a fund-by-fund analysis
of performance and profitability. Detailed presentations were also provided by
each Sub-Adviser. The Board deliberated outside the presence of management and
the Advisers.
In their deliberations, each Trustee attributed different weights to various
factors involved in their analysis of whether the Advisory Agreements should be
continued, and no factor alone was considered determinative. The Trustees
determined that the overall arrangements between the Trust and FTAM, between
FTAM and MSIM, and between FTAM and Fort Washington, as provided in the Advisory
Agreements, were fair and reasonable, and that the continuance of the Advisory
Agreements, were in the best interests of each Fund of the Trust and its
shareholders.
The matters addressed below were considered and discussed by the Trustees in
reaching their conclusions.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent,
and quality of the services provided to each Fund of the Trust under the
Advisory Agreements. The Trustees took into account information furnished
throughout the year at Board meetings, as well as materials furnished
specifically in connection with the annual review process. The Trustees
considered the background and experience of each Adviser's senior management and
the expertise of the investment personnel of each Adviser responsible for the
day-to-day management of each Fund of the Trust.
The Trustees received information concerning the investment philosophy and
investment processes applied by the Advisers in managing the Trust. The Trustees
also considered information regarding regulatory compliance and compliance with
the investment policies of the Trust. The Trustees evaluated the trading
practices of each Adviser. The Trustees also evaluated the procedures of the
Advisers designed to fulfill the Advisers' fiduciary duty to the Trust with
respect to possible conflicts of interest, including the Advisers' codes of
ethics (regulating the personal trading of its officers and employees).
Based on their review, the Trustees concluded that, with respect to the quality
and nature of services to be provided by the Advisers, the scope of
responsibilities was typical of those of investment advisers and sub-advisers to
open-end mutual funds generally, and that the quality of the services was very
satisfactory.
Investment Performance
The Trustees considered performance results of each Fund in absolute terms and
relative to each Fund's peer group. In conducting their review of performance,
both long- and short-term performance were considered. The Trustees noted that
performance varied considerably and they focused their review of performance on
those Funds whose performance compared unfavorably with their respective peers
(both Lipper and benchmark) over the most recent one-year, three-year and
five-year periods. The Trustees noted that the performance of the Micro Cap
Value Fund, the Intermediate Bond Fund, the Quality Growth Fund, the Balanced
Fund, the Dividend Growth Fund, and the Technology Fund ranked in the bottom
third in their respective Lipper and benchmark rankings for at least two of the
one-year, three-year, and five-year periods.
187
Fifth Third Funds
Supplemental Information (Unaudited), continued
- --------------------------------------------------------------------------------
The Trustees considered the unique asset class and supply constraints FTAM faced
with respect to the Micro Cap Value Fund. The Trustees considered FTAM's
strategic considerations with respect to the Intermediate Bond Fund, the
Balanced Fund, and the Technology Fund. With respect to the Quality Growth Fund
and the Dividend Growth Fund, the Trustees also noted the contractual expense
limitation agreements put in place last year.
With respect to the International Equity Fund, the Trustees noted that the Fund
had outperformed its benchmark for the year-to-date period and over the past
one-year period ended July 31, 2007 and had performed in the top one-third of
its peer group for the past three-, five-, and seven-year periods.
With respect to the High Yield Bond Fund of Fort Washington, the Trustees noted
that while the Fund had slightly underperformed its benchmark for the one-year
period, the Fund focused on the higher quality segments of the high yield bond
market.
Based on their review and consideration of FTAM's attempts to address
performance issues, the Trustees concluded that the performance of each of the
Funds of the Trust was satisfactory or better.
Cost of Services and Profits Realized by FTAM and Its Affiliates
The Trustees considered comparable peer group information with respect to the
advisory fees charged by FTAM to each of the Funds of the Trust, taking into
consideration both contractual and actual (i.e., after waiver) fee levels. The
Trustees also reviewed administration, accounting, and custody fees received by
FTAM. The Trustees also considered the fallout benefits to FTAM of soft dollars,
based on presentations to the Board. The Trustees reviewed profitability
information provided by FTAM with respect to investment advisory,
administration, accounting, transfer agency, and custody services to each Fund
of the Trust. The Trustees recognized that such data is not typically audited
and therefore represented FTAM's own determination of its revenues, as well as
the revenues of its affiliates, from the contractual services provided to the
Trust, less expenses of providing such services. Expenses included direct and
indirect costs, and were calculated using an allocation methodology developed by
FTAM. The Trustees recognized the difficulty in making comparisons of
profitability to other investment advisers because comparative information is
affected by numerous factors, including the structure of the particular adviser,
the types of funds it manages, its business mix, and numerous assumptions
regarding allocations. The Trustees also considered the impact that the proposed
additional expense limitations would have on FTAM's profitability. Based on
their review, the Trustees concluded that the profitability to FTAM under the
Advisory Agreement was not unreasonable in light of the services and benefits
provided to each Fund of the Trust.
With respect to each Sub-Advisers profitability, the Trustees noted that
sub-advisory fees are paid by FTAM, rather than directly from the Trust's
assets. The Board also concluded that the these fees were fair and reasonable,
in light of the services and benefits provided to each Fund.
Economies of Scale
The Trustees also considered whether fee levels reflected economies of scale and
whether economies of scale would be produced by the growth of the Trust's
assets. The Trustees took into account the asset growth in the Trust's assets
over the last year. The Trustees noted the expense limitations proposed by FTAM
for the International Equity Fund, the Intermediate Municipal Bond Fund and the
Quality Growth Fund. The Trustees also considered the expense limitations
previously enacted and proposed for extension for the Prime Money Market Fund,
the Michigan Municipal Money Market Fund, the Municipal Money Market Fund, the
Institutional Money Market Fund, the Institutional Government Money Market Fund,
the U.S. Treasury Money Market Fund, the Structured Large Cap Plus Fund, the
Equity Index Fund, the LifeModel Aggressive Fund(SM), the LifeModel Moderately
Aggressive Fund(SM), the LifeModel Moderate Fund(SM), the LifeModel Moderately
Conservative Fund(SM), the LifeModel Conservative Fund(SM), the High Yield Bond
Fund, the Michigan Municipal Bond Fund, the Strategic Income Fund, the All Cap
Value Fund, the Small Cap Value Fund, the Mid Cap Growth Fund, the Small Cap
Growth Fund, the Disciplined Large Cap Value Fund, the Total Return Bond Fund,
the Short Term Bond Fund, the Intermediate Bond Fund, the Municipal Bond Fund,
the U.S. Government Bond Fund, the Government Money Market Fund, and the
Dividend Growth Fund. The Trustees took into account the impact of the expense
limitations and the resulting decrease in revenue for FTAM. The Trustees
concluded that the asset levels of the Trust were currently not so large as to
warrant formal contractual breakpoints, and that the contractual expense
limitations were a reasonable way to provide the benefits of economies of scale
to shareholders at this time.
188
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189
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190
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191
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192
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 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
1055 Broadway, 10th Floor
Kansas City, MO 64105
- ---------------------------------------------------------------------------------------
Fifth Third Funds
FTF1031 013109
1/08 SAR-STBD-08
[ ] MONEY MARKET MUTUAL FUNDS
Semi-Annual Report to Shareholders
---------------------------
January 31, 2008
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, on the
Funds' website at www.fifththirdfunds.com or by calling 1-800-282-5706 and on
the Securities and Exchange Commission's website at http://www.sec.gov.
Schedules of 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. They may be viewed at the SEC's Public Reference Room in
Washington, D.C. (information on the operation of the Public Reference Room may
be obtained by calling 800.SEC.0330).
Fifth Third Funds are distributed by FTAM Funds Distributor, Inc., member FINRA.
FTAM Funds Distributor, Inc. is not an affiliate of Fifth Third Bank, Fifth
Third Funds or Fifth Third Asset Management, Inc. 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
Manager Commentary ............ 3
Schedules of Investments ...... 5
Statements of Assets
and Liabilities ............ 30
Statements of Operations ...... 32
Statements of Changes
in Net Assets .............. 34
Financial Highlights .......... 38
Notes to Financial Statements . 44
Supplemental Information ...... 50
OUR MESSAGE TO YOU
- --------------------------------------------------------------------------------
Volatile markets represented the norm during the second half of 2007 and first
month of 2008, seeming to unsettle Fifth Third Funds shareholders and other
investors alike.
Among some of the broader market indexes, declines for the six-month period
ending January 31, 2008, included:
o A 4.32% retreat for the S&P 500 Index of large cap stocks.
o A 5.44% retreat for the S&P 400 Index of mid cap stocks.
o A 8.00% retreat for the S&P 600 Index of small cap stocks.
o A 7.52% retreat for the MSCI EAFE Index of international stocks.
Results reflected an attraction to larger, more stable companies as turmoil in
the world's financial markets and an economic slowdown in the U.S. fueled
distaste for riskier assets. For example, although growth stocks continued to
outperform value holdings, the difference narrowed considerably during January.
Among international investments, emerging market stocks generally outperformed
those from established economies as surging commodity prices benefited raw
materials producers - many of which are found in developing countries.
In light of challenging periods such as this, we would remind investors that
markets do not follow a one-way path. Losses can - and do - happen, but by
keeping focused on the long haul with well-diversified portfolios, individuals
are better positioned to capitalize on positive moves in the future.
A number of factors influenced the financial markets during the period, most
significantly:
1. The "credit crisis" that grew out of complications in the subprime mortgage
industry. As tens of billions of dollars of mortgage securities were
essentially deemed worthless, capital markets dried up and central banks
around the world scrambled to inject liquidity into the system. Meanwhile,
the U.S. housing market collapsed amid falling values and stricter lending
requirements.
2. A renewal of the concept of risk. Following four years of Wall Street
embracing risk and failing to price risk appropriately, the seizure of the
bond markets sent many investors fleeing to safe havens. While large
investment banks were forced to write off debt securities and derivatives
such as collateralized debt obligations and structured investment vehicles,
virtually any bond not issued by the U.S. government was prone to a
pronounced fall. Such developments left many high quality, modest risk
investments at attractive prices.
3. An economic slowdown in the U.S. that originated in the housing industry
and spread to consumers. As consumer confidence drooped, oil prices rose
and the unemployment rate jumped higher, the holiday shopping season proved
disappointing. Conditions deteriorated to the point that the Federal
Reserve, which had already cut its key lending rate 100 basis points during
the first five months of the period, slashed an additional 125 basis points
in an eight-day period in late January. In addition, leaders in Washington
collaborated on a $168 billion economic relief package.
4. Corporate profit growth - outside of the beleaguered financials sector -
remained solid, which translated into attractive valuations for equities.
Accounting for a portion of the earnings growth was the weakening of the
U.S. dollar, which made U.S. products more competitive overseas and boosted
the profits of multinational companies.
5. Inflation remained manageable, despite rising oil prices and booming
commodity markets driven by strong worldwide demand for raw materials,
energy and foodstuffs.
6. Economic growth rates around the world remained solid. Led by expansions in
developing markets such as China and India, many countries enjoyed
above-average growth rates during 2007. In turn, global equities posted
market-leading gains in 2007, although concerns over inflationary pressures
and economic slowdowns contributed to a rocky January.
1
For the bond market, U.S. Treasury issues provided modest gains during the
six-month period. Amid the flight to quality, non-government issues suffered
significantly - especially mortgage-related debentures - although higher rated
bonds tended to endure the slump better than riskier issues. Cash investments
saw yields fall as the Federal Reserve trimmed its key lending rate from 5.25%
to 3.00%. As long-term interest rates fell less severely, the U.S. Treasury
yield curve returned to its natural slope, with short-term issues yielding less
than long-term bonds.
Admittedly, the markets have proven precarious during the past six months, yet
underlying conditions remain encouraging. Attractive valuations, low interest
rates, modest inflation, a healthy global economy and an accommodative Federal
Reserve all foster cautiously positive sentiments, not gloom and doom.
The modest dose of optimism, of course, is backed by the high quality philosophy
sustained across the family of Fifth Third Funds. Knowing that the stocks and
bonds held by our Funds rest on solid fundamentals, I believe we are ideally
positioned for the market's recovery, whenever that occurs.
Looking ahead, our expectations on the macro-economic front include:
o Further cuts in the Federal Reserve's interest rates in the near term.
o U.S. economic growth of 1% to 2% during the first half of 2008, and near 3%
during the second half.
o Continued weakness in the U.S. housing market.
o Global economic growth around 4% for 2008.
o Respectable profit growth among U.S. corporations with annual earnings per
share figures rising about 8%.
o A rebound in the value of the U.S. dollar, although it may initially slip
lower in early 2008.
o A restoration of traditional risk-reward profiles in the fixed income
market.
The market was filled with turmoil over the past six months as even high quality
assets declined in value. But looking ahead, I'm confident that we have built
dynamic portfolios to help take advantage of market opportunities in an effort
to seek rewards on your behalf.
Thank you for your confidence in Fifth Third Funds.
/s/ Keith Wirtz
Keith Wirtz, CFA
Chief Investment Officer
(1)TERMS AND DEFINITIONS
- --------------------------------------------------------------------------------
The Standard & Poor's 500 Stock Index ("S&P 500 Index") is an index of 500
selected common stocks, most of which are listed on the New York Stock Exchange,
and is a measure of the U.S. stock market as a whole.
The Standard and Poor's MidCap 400 Index ("S&P 400 Index") is an index of 400
selected common stocks that tracks U.S. firms with market capitalizations of
$1.5 billion to $5.5 billion.
The Standard and Poor's SmallCap 600 Index ("S&P 600 Index") is an index of 600
selected common stocks that tracks U.S. firms with market capitalizations of
$300 million to $2 billion.
The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
(EAFE)(R) Index is generally representative of a sample of companies of the
market structure of 20 European and Pacific Basin countries.
The above indices do not reflect the deduction of fees associated with a mutual
fund such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
2
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
MONEY MARKET FUNDS
For the six-month period ending January 31, 2008, the Fifth Third Money Market
Funds experienced steadily declining yields on an absolute basis. The retreating
yields were the direct result of an easing monetary policy in which the Federal
Reserve's Federal Open Market Committee (FOMC) reduced the Federal Funds target
rate five times, moving from 5.25% to 3.00%.
The period was marred by difficult financial and economic conditions. The
significant stress experienced throughout the financial sector diminished
capital market liquidity and ultimately led to the monetary policy change.
Acting decisively and aggressively, the FOMC and Fed Chairman Ben Bernanke
recognized that downside risks to economic growth lingered, due to the threat of
further weakness in the housing and labor markets. Overall market volatility
increased due to speculation over the future course of monetary policy and rate
adjustments, which remain dependent upon economic data.
The Funds maintained a longer duration+ strategy during the period, selectively
executing floating and fixed extension trades aimed at capturing additional
yield opportunities. This approach positioned the Funds appropriately within the
rate-cutting environment. The taxable Money Market Funds continued to heavily
utilize more traditional, liquid 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 and the Fifth Third
Institutional Government Money Market Fund. The Funds benefited from active
duration+ management and higher yielding rate resets on the floating interest
rate securities. Furthermore, the resulting liquidity allowed the Funds to
readily cope with volatile cash flows during this uncertain time.
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. The
Funds generally avoided many of the problem security structures, such as
Collateralized Debt Obligations (CDOs), Structured Investment Vehicles (SIVs)
and securities tied to subprime mortgages.
Municipal money markets generally contended with pressures related to downgrades
of monoline insurers, which back lower quality municipal bonds. Meanwhile,
assets grew as investors sought the safety of money market funds amid
significant market volatility.
Municipal and Michigan Municipal Money Market funds were both managed
conservatively, with about 80% of holdings consisting of weekly and daily
floater programs, most of which were backed by letters of credit. The balance of
the Fund holdings generally consisted of commercial paper, notes and bonds that
have a final maturity within 397 days. To capture slightly higher yields, the
Funds sought smaller high quality issues, which are subject to modest demand,
although supply for Michigan-specific issues was tight.
+ Duration is the weighted average maturity of a bond's cash flows.
MATURITY COMPOSITION AS OF JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
Weighted Average Maturity(#)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DAYS DAYS
AS OF 7/31/07 AS OF 1/31/08
- --------------------------------------------------------------------------------
Fifth Third Prime 35 47
Money Market
- --------------------------------------------------------------------------------
Fifth Third Institutional 38 47
Money Market
- --------------------------------------------------------------------------------
Fifth Third Institutional 43 52
Government Money
Market
- --------------------------------------------------------------------------------
Fifth Third U.S. Treasury 19 30
Money Market
- --------------------------------------------------------------------------------
Fifth Third Michigan 14 19
Municipal Money
Market
- --------------------------------------------------------------------------------
Fifth Third Municipal 12 19
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
- --------------------------------------------------------------------------------
as a percentage of value of investments
INSTITUTIONAL MICHIGAN
PRIME INSTITUTIONAL GOVERNMENT U.S. TREASURY MUNICIPAL MUNICIPAL
MONEY MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 8 Days 4.2% 3.3% 1.8% 2.6% 26.2% 23.5%
- ------------------------------------------------------------------------------------------------------------------------------------
8 to 14 Days 0.5% 0.9% 0.4% 0.0% 0.0% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
15 to 30 Days 10.8% 4.8% 6.3% 1.1% 5.2% 5.0%
- ------------------------------------------------------------------------------------------------------------------------------------
31 to 180 Days 49.4% 54.6% 61.7% 48.8% 22.8% 30.5%
- ------------------------------------------------------------------------------------------------------------------------------------
181 to 365 Days 35.1% 36.4% 29.8% 47.5% 45.8% 41.0%
- ------------------------------------------------------------------------------------------------------------------------------------
366 to 397 Days 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
4
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS (19.0%)
COMMERCIAL BANKS-CENTRAL U.S. (1.3%)
US Bank NA, Series BKNT, 4.13%,
3/17/08 $ 10,000 $ 9,986
US Bank NA, Series BKNT, 4.40%,
8/15/08 8,310 8,281
------------
18,267
------------
COMMERCIAL BANKS NON-U.S. (a)(d) (1.0%)
BNP Paribas, 4.08%, 5/13/08 15,000 15,000
------------
COSMETICS & TOILETRIES (1.0%)
Procter & Gamble Co., 3.50%,
12/15/08 ** 15,000 15,063
------------
DIVERSIFIED FINANCIAL SERVICES (2.1%)
General Electric Capital Corp.,
Series A, 4.00%, 2/22/08 (a)(d) 5,000 5,000
General Electric Capital Corp.,
4.13%, 3/4/08 21,475 21,455
General Electric Capital Corp.,
Series A, 3.60%, 10/15/08 5,000 4,966
------------
31,421
------------
FIDUCIARY BANKS (0.3%)
Bank of New York Mellon Corp. (The),
3.75%, 2/15/08 5,000 4,997
------------
FINANCE-CONSUMER LOANS (0.7%)
HSBC Finance Corp., Series EXL,
4.55%, 2/6/08 (a)(d) 10,000 10,000
------------
FINANCE-INVESTMENT BANKER/BROKER (5.4%)
Bear Stearns Cos., Inc. (The), 4.64%,
2/5/08 (a)(d) 20,000 20,000
Bear Stearns Cos., Inc. (The), 3.46%,
4/29/08 (a)(d) 10,000 10,002
Citigroup, Inc., 3.50%, 2/1/08 10,000 10,000
Credit Suisse USA, Inc., 3.88%,
1/15/09 5,819 5,852
JPMorgan Chase & Co., 4.00%, 2/1/08 5,000 5,000
Merrill Lynch & Co., Inc., 4.13%,
2/19/08 (a)(d) 8,000 8,000
Merrill Lynch & Co., Inc., Series B,
3.70%, 4/21/08 1,130 1,126
Morgan Stanley, 4.65%, 2/4/08 (a)(d) 15,000 15,000
Morgan Stanley, 3.63%, 4/1/08 4,740 4,727
------------
79,707
------------
INTEGRATED OIL & GAS (1.5%)
BP Capital Markets PLC, 5.07%,
3/11/08 (a) (d) 15,000 15,000
Texaco Capital, Inc., 5.50%, 1/15/09 7,500 7,682
------------
22,682
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
RETAIL (0.4%)
Wal-Mart Stores, Inc., 3.38%, 10/1/08 $ 5,300 $ 5,259
------------
SPECIAL PURPOSE ENTITY (a)(d) (0.8%)
Florida Hurricane Catastrophe Fund,
Series 2006-B, 4.45%, 3/15/08,
(LOC: Dexia), (Callable 3/15/08 @ 100) 12,000 12,000
------------
SUPER-REGIONAL BANKS-U.S. (4.5%)
Bank One Corp., 6.00%, 8/1/08 13,534 13,601
SunTrust Banks, Inc., 4.00%, 10/15/08 6,190 6,198
Wells Fargo & Co., Series 1, 4.46%,
2/11/08 (a)(d) 6,000 6,000
Wells Fargo & Co., 4.32%,
2/15/08 (a)(d) 25,000 25,000
Wells Fargo & Co., 4.00%, 8/15/08 6,300 6,293
Wachovia Bank NA, Series BKNT, 3.12%,
4/2/08 (a) (d) 5,000 4,977
Wachovia Bank NA, Series BKNT, 4.67%,
4/3/08 (a) (d) 4,000 4,003
------------
66,072
------------
TOTAL CORPORATE BONDS 280,468
------------
U.S. GOVERNMENT AGENCIES (3.5%)
FEDERAL FARM CREDIT BANK (0.3%)
3.15%, 2/28/08 (a)(d) 3,500 3,500
2.82%, 5/15/08 1,000 993
------------
4,493
------------
FEDERAL HOME LOAN BANK (3.2%)
5.25%, 2/1/08 3,000 3,000
5.25%, 2/5/08 2,000 2,000
4.85%, 2/6/08 820 820
4.63%, 2/8/08 1,215 1,215
3.38%, 2/15/08 5,590 5,586
4.13%, 2/15/08 1,000 999
4.50%, 2/15/08 500 500
4.81%, 2/20/08 (a)(d) 8,000 8,000
4.93%, 2/20/08 ** 2,000 1,995
5.13%, 2/26/08 1,000 1,000
5.13%, 2/28/08 1,000 1,000
4.88%, 3/5/08 540 540
2.75%, 3/14/08 4,450 4,438
4.57%, 4/1/08 (a)(d) 2,000 2,000
4.43%, 4/7/08 1,100 1,096
4.60%, 4/11/08 1,955 1,953
4.13%, 4/18/08 2,900 2,894
5.13%, 5/14/08 570 570
4.00%, 5/15/08 500 499
3.25%, 6/12/08 1,000 994
4.10%, 6/13/08 810 807
3.00%, 7/9/08 1,500 1,488
3.38%, 7/21/08 1,000 993
5.13%, 7/23/08 550 550
Continued
5
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK, CONTINUED
3.88%, 8/22/08 $ 790 $ 786
4.65%, 8/22/08 781 779
------------
46,502
------------
TOTAL U.S. GOVERNMENT AGENCIES 50,995
------------
CERTIFICATES OF DEPOSIT (6.5%)
COMMERCIAL BANKS-CENTRAL U.S. (1.4%)
Bank of Montreal, 5.07%, 2/26/08 20,000 20,000
------------
COMMERCIAL BANKS-EASTERN U.S. (4.1%)
Canadian Imperial Bank, 4.65%, 4/30/08 10,000 9,999
Citibank New York, 4.88%, 2/11/08 10,000 10,000
Citibank New York, 5.15%, 2/29/08 10,000 9,999
State Street Bank & Trust Co., 4.78%,
2/15/08 20,000 20,000
UBS AG Stamford Branch, 5.20%, 2/4/08 10,000 10,000
------------
59,998
------------
COMMERCIAL BANKS-SOUTHERN U.S. (1.0%)
Branch Banking & Trust Co., 5.35%,
4/23/08 15,000 15,000
------------
TOTAL CERTIFICATES OF DEPOSIT 94,998
------------
COMMERCIAL PAPER (36.0%)
ASSET-BACKED (3.2%)
Old Line Funding LLC, 3.70%, 2/6/08 (b) 12,586 12,580
Old Line Funding LLC, 4.10%,
2/15/08 (b) 20,000 19,968
Windmill Funding Corp., 4.25%,
2/6/08 (b) 15,000 14,991
------------
47,539
------------
BEVERAGES-NON ALCOHOLIC ** (1.0%)
Coca-Cola Co. (The), 4.46%, 2/25/08 15,000 14,956
------------
COMMERCIAL BANKS NON-U.S. ** (3.9%)
Bank of Nova Scotia, 4.89%, 3/7/08 15,000 14,929
Barclays PLC, 5.12%, 2/11/08 8,000 7,988
Barclays PLC, 4.76%, 2/29/08 10,000 9,963
Barclays PLC, 4.49%, 5/5/08 15,000 14,824
Toronto Dominion Bank (The), 4.92%,
2/26/08 (b) 10,000 9,966
------------
57,670
------------
DIVERSIFIED FINANCIAL SERVICES ** (2.0%)
General Electric Capital Corp.,
4.35%, 3/24/08 15,000 14,906
General Electric Capital Corp.,
4.24%, 4/8/08 15,000 14,881
------------
29,787
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER, CONTINUED
FIDUCIARY BANKS ** (1.0%)
State Street Corp., 4.29%, 3/26/08 $ 15,000 $ 14,904
------------
FINANCE-AUTO LOANS ** (5.2%)
American Honda Finance Corp., 4.29%,
2/28/08 17,000 16,945
Toyota Motor Credit Co., 4.74%,
2/22/08 10,000 9,972
Toyota Motor Credit Co., 4.54%,
3/14/08 15,000 14,921
Toyota Motor Credit Co., 4.66%,
3/27/08 10,000 9,929
Toyota Motor Credit Co., 4.58%,
4/9/08 5,000 4,957
Toyota Motor Credit Co., 4.53%,
4/25/08 10,000 9,894
Toyota Motor Credit Co., 4.32%,
6/25/08 10,000 9,826
------------
76,444
------------
FINANCE-INVESTMENT BANKER/BROKER ** (2.7%)
BNP Paribas Financial, Inc., 3.66%,
6/23/08 15,000 14,782
Goldman Sachs Group, Inc. (The),
4.75%, 2/12/08 10,000 9,985
JPMorgan Chase & Co., 3.50%,
4/22/08 15,000 14,882
------------
39,649
------------
INTEGRATED OIL & GAS ** (3.8%)
BP Capital Markets PLC, 4.49%,
3/27/08 (b) 10,000 9,932
BP Capital Markets PLC, 4.47%,
4/10/08 10,000 9,914
Shell International Finance BV,
3.40%, 2/5/08 (b) 21,000 20,992
Total FINA Elf SA, 4.10%, 3/31/08 15,000 14,899
------------
55,737
------------
MONEY CENTER BANKS ** (5.4%)
Deutsche Bank Financial LLC, 3.13%,
2/1/08 25,000 25,000
Deutsche Bank Financial LLC, 3.09%,
2/29/08 10,000 9,976
Deutsche Bank Financial LLC, 4.79%,
3/12/08 15,000 14,920
Deutsche Bank Financial LLC, 3.77%,
4/21/08 15,000 14,874
UBS Financial, 4.12%, 5/12/08 15,000 14,827
------------
79,597
------------
REGIONAL AUTHORITY (0.7%)
Michigan State Multifamily Housing
Project, 4.85%, 10/28/08 10,000 10,000
------------
Continued
6
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER, CONTINUED
SPECIAL PURPOSE BANKS ** (2.3%)
Dexia Delaware LLC, 4.87%, 3/19/08 $ 18,505 $ 18,387
Dexia Delaware LLC, 4.50%, 3/31/08 15,000 14,890
------------
33,277
------------
SPECIAL PURPOSE ENTITY ** (3.8%)
AIG Funding, Inc., 3.93%, 6/23/08 10,000 9,844
Nestle Capital Corp., 4.48%,
5/22/08 5,000 4,931
Procter & Gamble International
Funding, 4.50%, 2/20/08 (b) 5,000 4,988
Societe Generale, 5.12%, 3/10/08 10,000 9,946
Societe Generale, 4.76%, 4/4/08 10,000 9,917
Societe Generale, 3.85%, 4/15/08 15,000 14,881
------------
54,507
------------
SUPER-REGIONAL BANKS-U.S.** (1.0%)
Wells Fargo & Co., 3.17%, 3/18/08 15,000 14,939
------------
TOTAL COMMERCIAL PAPER 529,006
------------
DEMAND NOTES (11.3%)
DIVERSIFIED FINANCIAL SERVICES (0.6%)
Harry W. Albright JR, Series 1996,
3.36%, 2/7/08,
(LOC: Bank of America) (a)(d) 5,485 5,485
Woods Group, Series 2007-A, 3.31%,
9/1/32, (LOC: Regions Bank) (a)(b) 4,000 4,000
------------
9,485
------------
FINANCE-OTHER SERVICES (0.6%)
Lexington Financial Services LLC,
Series 2001, 3.35%, 2/7/08,
(LOC: Bank of America) (a)(d) 8,200 8,200
------------
FINANCIAL (0.9%)
Cornerstone Funding Corp., Series
2001, 3.23%, 12/1/11,
(LOC: Suntrust) (a) 7,625 7,625
Cornerstone Funding Corp., Series
2003-A, 3.23%, 7/1/25,
(LOC: National City) (a) 5,497 5,497
------------
13,122
------------
SPECIAL PURPOSE ENTITY (a)(d) (9.2%)
Beavercreek Enterprises, Series 2000,
3.69%, 2/6/08, (LOC: National City) 3,925 3,925
Buckeye Corrugated, Inc., Series
1997, 3.35%, 2/7/08,
(LOC: Keybank) (b) 4,475 4,475
Bybee Foods LLC Taxable Adjustable
Rate Notes, Series 2006, 3.35%,
2/7/08, (LOC: Keybank) 1,600 1,600
Capital One Funding Corp., Series
1996-H, 3.35%, 2/7/08, (LOC: JP
Morgan) (b) 725 725
Capital One Funding Corp., Series
1997-D, 3.35%, 2/7/08,
(LOC: JP Morgan) (b) 609 609
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
DEMAND NOTES, CONTINUED
SPECIAL PURPOSE ENTITY, CONTINUED
Capital One Funding Corp., Series
1999-D, 3.35%, 2/7/08,
(LOC: JP Morgan) $ 1,080 $ 1,080
Capital One Funding Corp., Series
2001-C, 3.35%, 2/7/08,
(LOC: JP Morgan) 2,208 2,208
Central Michigan Inns, 3.33%, 2/7/08,
(LOC: Wachovia) 960 960
CHF - Elon LLC, Series 2005, 3.30%,
2/7/08, (LOC: Regions Bank) (b) 19,985 19,985
Clare at Water Tower (The), Series
2005, 3.30%, 2/7/08,
(LOC: Bank of America) 12,500 12,500
Erickson Foundation, Inc. (The),
3.30%, 2/8/08, (LOC: FHLB) 15,000 15,000
Fort Bend Church (The), 3.33%,
2/7/08, (LOC: Regions Bank) 2,000 2,000
HWP Co., Ltd., 3.69%, 2/7/08,
(LOC: National City) (b) 4,005 4,005
Iowa 80 Group, Inc., 5.23%, 3/1/08,
(LOC: Wells Fargo) 3,415 3,415
Jackson 2000 LLC, Series 1999, 3.35%,
2/7/08, (LOC: Keybank) 8,600 8,600
Jefferson Land Development, Ltd.,
Series 1997, 3.74%, 2/7/08,
(LOC: National City) (b) 1,000 1,000
Landmark Medical LLC, Series 2000,
3.56%, 2/7/08, (LOC: JP Morgan) 6,780 6,780
Lincoln Hills Development Corp.,
Series 2004, 3.31%, 2/7/08,
(LOC: Regions Bank) 3,340 3,340
Mount Carmel East Professional Office
Building III LP, Series 1994, 3.69%,
2/7/08, (LOC: National City) (b) 1,330 1,330
New Belgium Brewing Co., Inc., Series
2000, 3.42%, 2/7/08,
(LOC: Wells Fargo) 2,385 2,385
PCI Paper Conversions, Inc., Series
2000, 3.35%, 2/7/08,
(LOC: Keybank) 1,185 1,185
Pittsburgh Technical Institute,
Series 1999, 3.69%, 2/7/08,
(LOC: National City) 8,915 8,915
Royal Town Center LLC, Series 1997,
3.35%, 2/7/08, (LOC: FHLB) (b) 5,095 5,095
SDK Cameron LLC, Series 2005, 3.45%,
2/7/08, (LOC: Comerica) (b) 3,090 3,090
Secor Realty, Inc., 3.69%, 2/7/08,
(LOC: National City) 6,880 6,880
SGS Tool Co., Series 1999, 3.63%,
2/7/08, (LOC: JP Morgan) 3,025 3,025
St Andrew United Methodist Church,
Series 2004, 3.30%, 2/7/08,
(LOC: Wachovia) 11,135 11,135
Zeigler Realty LLC, Series 1996,
3.68%, 2/7/08, (LOC: National City) 685 685
------------
135,932
------------
TOTAL DEMAND NOTES 166,739
------------
Continued
7
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES (a)(d) (11.2%)
ALABAMA (0.5%)
Albertville Industrial Development
Board, 3.31%, 2/7/08,
(LOC: Regions Bank) $ 7,530 $ 7,530
------------
ALASKA (0.2%)
Four Dam Pool Power Agency,
Series B, 3.28%, 2/7/08,
(LOC: Dexia Credit Local) 3,280 3,280
------------
CALIFORNIA (2.7%)
County of Sacramento, 3.30%, 2/6/08,
(LOC: Bayerische Landesbank) 32,430 32,430
County of Riverside, CP, 3.30%,
2/6/08, (LOC: State Street B&T Co.) 6,500 6,500
------------
38,930
------------
COLORADO (b) (0.1%)
Pueblo Housing Authority, 3.42%,
2/7/08, (LOC: Wells Fargo Bank NA) 1,620 1,620
------------
DELAWARE (0.3%)
Revenue Bond Certificate Series Trust
Various States, 3.46%, 2/7/08,
(LOC: AIG) (b) 3,635 3,635
------------
FLORIDA (0.7%)
County of Washington, Series B,
3.31%, 2/7/08, (LOC: SunTrust Bank) 2,800 2,800
Florida Development Finance Corp.,
Concrete Investments, 3.31%, 2/7/08,
(LOC: Amsouth Bank) (b) 7,200 7,200
------------
10,000
------------
GEORGIA (1.1%)
Columbus Development Authority,
Litho-Krome Project, 3.29%, 2/7/08,
(LOC: Bank of America NA) 10,125 10,125
Mc Duffie County Development
Authority, Thomson Plastics Inc.,
3.31%, 2/7/08, (LOC: Regions Bank) 6,505 6,505
------------
16,630
------------
ILLINOIS (0.4%)
Finance Authority, Franciscan
Communities, Series B, 3.30%, 2/7/08,
(LOC: LaSalle Bank NA) 5,955 5,955
------------
IOWA (0.4%)
Dallas County Industrial Development,
Sioux City Brick and Tile, 3.56%,
2/7/08, (LOC: Firstar Bank NA) 6,305 6,305
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MISSISSIPPI (0.2%)
Mississippi Business Finance Corp.,
Gulfport LLC, Series B, 3.33%,
2/7/08, (LOC: Wachovia Bank NA) $ 2,095 $ 2,095
------------
NEBRASKA (0.3%)
City of Omaha, Riverfront
Development, AMBAC, 6.25%, 2/6/08,
(LOC: Dexia) 5,000 5,000
------------
NEW YORK (0.8%)
New York City Housing Development
Corp., Multi-Family Housing, Series
A, 3.30%, 2/6/08, (LOC: Bayerische
Landesbank 12,085 12,085
------------
NORTH CAROLINA (0.9%)
Roman Catholic Diocese of Raleigh,
Series A, 3.31%, 2/7/08,
(LOC: Bank of America NA) 13,495 13,495
------------
OHIO (0.9%)
Cleveland-Cuyahoga County Port
Authority, 3.30%, 2/7/08,
(LOC: Keybank NA) 12,700 12,700
------------
PENNSYLVANIA (0.2%)
Allegheny County Industrial
Development Authority, 3.69%, 2/7/08,
(LOC: National City Bank PA) 2,330 2,330
------------
TEXAS (0.3%)
Brazos Higher Education Authority,
Series 2007 A6, Guaranteed Student
Loans, 3.38%, 2/7/08, (LOC: Depfa) 5,000 5,000
------------
UTAH (0.1%)
Housing Corp., Multi-Family Housing,
3.46%, 2/7/08, (LOC: AIG) 2,061 2,061
------------
WASHINGTON (1.1%)
State Housing Finance Commission,
Eaglepointe Apartments, 3.46%,
2/7/08, (LOC: AIG) 1,610 1,610
State Housing Finance Commission,
Monticello Park Project, 3.47%,
2/7/08, (LOC: FNMA) 3,710 3,710
State Housing Finance Commission,
Skyline At First, 3.30%, 2/7/08,
(LOC: Bank of America NA) 11,100 11,100
------------
16,420
------------
TOTAL MUNICIPAL DEMAND NOTES 165,071
------------
Continued
8
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -------------------------------------------------------------------------------
SHARES VALUE
----------- ------------
MONEY MARKETS (c) (5.1%)
AIM STIT Liquid Assets Portfolio 31,333,765 $ 31,334
Goldman Sachs Financial Square
Funds - Prime Obligations Fund 43,635,898 43,636
------------
TOTAL MONEY MARKETS 74,970
------------
PRINCIPAL
AMOUNT
-----------
REPURCHASE AGREEMENTS (7.6%)
Deutsche Bank, 2.85%, dated 1/31/08,
due 2/1/08, (Proceeds at maturity,
$100,008, Collateralized by various U.S.
Government Agency Securities,
0.00%-6.00%, 2/2/08-11/15/26,
value $101,243) $ 100,000 100,000
UBS Investment Bank, 2.82%, dated
1/31/08, due 2/1/08, (Proceeds at
maturity, $11,109, Collateralized by
various U.S. Government Agency
Securities, 3.10%, 1/2/09,
value $11,332) 11,106 11,106
------------
TOTAL REPURCHASE AGREEMENTS 111,106
------------
TOTAL INVESTMENTS (COST $1,473,353)+ - 100.2% 1,473,353
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (2,613)
------------
NET ASSETS - 100.0% $ 1,470,740
============
Continued
NOTES TO SCHEDULE OF INVESTMENTS
** Rate represents the effective yield at purchase.
+ Also represents cost for federal income tax purposes.
(a) Variable rate security. Rate presented represents rate in effect at January
31, 2008.
(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 Investments:
AMBAC - American Municipal Bond Assurance Corp.
CP - Certificate of Participation
FNMA - Federal National Mortgage Association
LOC - Letter of Credit
See notes to financial statements.
9
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS (16.3%)
COMMERCIAL BANKS-CENTRAL U.S. (1.1%)
M&I Marshall & Ilsley Bank, Series
BKNT, 3.80%, 2/8/08 $ 6,385 $ 6,383
M&I Marshall & Ilsley Bank, Series
BK, 3.35%, 2/25/08 5,000 4,992
US Bank NA, Series BKNT, 4.13%,
3/17/08 10,000 9,986
US Bank NA, Series BKNT, 4.40%,
8/15/08 12,957 12,936
------------
34,297
------------
COMMERCIAL BANKS-EASTERN U.S. (a) (d) (0.3%)
Barclays Bank PLC, 4.04%, 2/19/08 7,600 7,598
------------
COMMERCIAL BANKS NON-U.S. (a) (d) (0.8%)
BNP Paribas, 4.08%, 5/13/08 25,000 25,000
------------
COSMETICS & TOILETRIES (0.8%)
Procter & Gamble Co., 3.50%, 12/15/08 25,000 25,106
------------
DIVERSIFIED FINANCIAL SERVICES (2.3%)
American Express Credit Corp., Series
B, 4.64%, 3/5/08 (a) (d) 11,150 11,150
General Electric Capital Corp.,
4.42%, 2/11/08 (a) (d) 6,000 6,000
General Electric Capital Corp.,
Series A, 4.96%, 2/19/08 (a) (d) 10,000 9,996
General Electric Capital Corp.,
Series A, 4.00%, 2/22/08 (a) (d) 5,000 5,000
General Electric Capital Corp.,
4.13%, 3/4/08 25,000 24,981
General Electric Capital Corp.,
3.50%, 5/1/08 3,750 3,732
General Electric Capital Corp.,
Series A, 3.60%, 10/15/08 11,000 10,925
------------
71,784
------------
FIDUCIARY BANKS (0.4%)
Bank of New York Mellon Corp. (The),
3.75%, 2/15/08 6,000 5,996
Bank of New York Mellon Corp. (The),
4.97%, 3/17/08 (a) (d) 5,800 5,797
------------
11,793
------------
FINANCE-CONSUMER LOANS (0.6%)
HSBC Finance Corp., Series EXL,
4.55%, 2/6/08 (a) (d) 15,000 15,000
HSBC Finance Corp., 4.13%, 3/11/08 5,000 4,993
------------
19,993
------------
FINANCE-INVESTMENT BANKER/BROKER (a) (d) (4.8%)
Bear Stearns Cos., Inc. (The), 4.64%,
3/5/08 (a) (d) 16,000 16,000
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
CORPORATE BONDS, CONTINUED
FINANCE-INVESTMENT BANKER/BROKER, CONTINUED
Bear Stearns Cos., Inc. (The), 3.46%,
4/29/08 (a) (d) $ 30,000 $ 30,009
Citigroup, Inc., 3.50%, 2/1/08 23,000 23,000
Credit Suisse USA, Inc., Series 1,
5.23%, 3/3/08 (a) (d) 27,000 26,806
Credit Suisse USA, Inc., 3.88%,
1/15/09 13,000 13,074
JPMorgan Chase & Co., 4.00%, 2/1/08 7,000 7,000
Merrill Lynch & Co., Inc., 4.13%,
2/19/08 (a) (d) 18,000 18,000
Merrill Lynch & Co., Inc., Series B,
3.70%, 4/21/08 10,000 9,954
Morgan Stanley, 5.20%, 3/7/08 (a) (d) 5,000 4,999
------------
148,842
------------
INTEGRATED OIL & GAS (1.4%)
BP Capital Markets PLC, 5.07%,
3/11/08 (a) (d) 35,000 35,000
Texaco Capital, Inc., 5.50%, 1/15/09 9,865 10,100
------------
45,100
------------
RETAIL (0.5%)
Wal-Mart Stores, Inc., 3.38%, 10/1/08 15,000 14,881
------------
SPECIAL PURPOSE ENTITY (0.6%)
Florida Hurricane Catastrophe Fund,
Series 2006-B, 4.45%, 3/15/08, (LOC:
Dexia), (Callable 3/15/08 @ 100) 20,000 20,000
------------
S&L/THRIFTS-WESTERN U.S. (0.5%)
World Savings Bank FSB, 4.13%, 3/10/08 15,625 15,605
------------
SUPER-REGIONAL BANKS-U.S. (2.2%)
Bank One Corp., 6.00%, 8/1/08 19,000 19,096
SunTrust Banks, Inc., 4.00%, 10/15/08 8,000 8,010
Wachovia Bank NA, Series BKNT, 3.12%,
4/2/08 (a) (d) 15,000 14,932
Wachovia Bank NA, Series BKNT, 3.40%,
4/25/08 (a) (d) 10,000 9,993
Wachovia Bank NA, Series BKNT, 4.38%,
8/15/08 8,082 8,054
Wachovia Corp., 3.50%, 8/15/08 4,000 3,964
Wells Fargo & Co., 4.00%, 8/15/08 5,000 4,974
------------
69,023
------------
TOTAL CORPORATE BONDS 509,022
------------
MORTGAGE-BACKED SECURITIES (a) (d) (0.2%)
CMBS OTHER (0.2%)
Freddie Mac, 5.01%, 2/6/08 7,632 7,632
------------
TOTAL MORTGAGE-BACKED SECURITIES 7,632
------------
Continued
10
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES (1.3%)
FANNIE MAE ** (0.7%)
3.45%, 4/1/08 $ 23,421 $ 23,286
------------
FEDERAL HOME LOAN BANK (0.6%)
3.50%, 2/11/08 8,000 7,996
4.00%, 1/9/09 9,545 9,545
------------
17,541
------------
TOTAL U.S. GOVERNMENT AGENCIES 40,827
------------
CERTIFICATES OF DEPOSIT (6.5%)
COMMERCIAL BANKS-CENTRAL U.S. (1%)
Bank of Montreal, 5.07%, 2/26/08 30,000 30,000
------------
COMMERCIAL BANKS-EASTERN U.S. (4.7%)
Canadian Imperial Bank, 4.65%, 4/30/08 25,000 24,997
Citibank New York, 4.88%, 2/11/08 25,000 25,000
Citibank New York, 5.14%, 3/4/08 25,000 25,000
State Street Bank & Trust Co., 4.78%,
2/15/08 30,000 30,000
UBS AG Stamford Branch, 5.20%,
2/4/08 15,000 15,000
UBS AG Stamford Branch, 5.01%,
4/7/08 25,000 25,000
------------
144,997
------------
COMMERCIAL BANKS-SOUTHERN U.S. (0.8%)
Branch Banking & Trust Co., 5.35%,
4/23/08 10,000 10,000
Branch Banking & Trust Co., 2.80%,
10/27/08 15,000 15,000
------------
25,000
------------
TOTAL CERTIFICATES OF DEPOSIT 199,997
------------
COMMERCIAL PAPER (44.7%)
ASSET BACKED (b) (2.9%)
Old Line Funding LLC, 4.65%, 2/1/08 20,000 20,000
Old Line Funding LLC, 3.70%, 2/4/08 18,532 18,526
Old Line Funding LLC, 4.10%,
2/15/08 25,546 25,505
Windmill Funding Corp., 4.25%,
2/6/08 25,000 24,985
------------
89,016
------------
BEVERAGES-NON ALCOHOLIC ** (0.6%)
Coca-Cola Co. (The), 4.46%, 2/25/08 20,000 19,941
------------
COMMERCIAL BANKS NON-U.S. ** (4.1%)
Bank of Nova Scotia, 4.89%, 3/7/08 25,000 24,881
Barclays PLC, 5.12%, 2/11/08 17,000 16,976
Barclays PLC, 4.76%, 2/29/08 20,000 19,926
Barclays PLC, 4.78%, 3/6/08 25,000 24,887
Barclays PLC, 4.49%, 5/5/08 25,000 24,707
Toronto Dominion Bank (The), 4.92%,
2/26/08 (b) 15,000 14,949
------------
126,326
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER, CONTINUED
DIVERSIFIED FINANCIAL SERVICES ** (1.8%)
General Electric Capital Corp.,
4.90%, 3/7/08 $ 15,000 $ 14,928
General Electric Capital Corp.,
4.35%, 3/24/08 15,000 14,906
General Electric Capital Corp.,
4.24%, 4/8/08 25,000 24,803
------------
54,637
------------
EDUCATION (0.4%)
Purdue Research Funding, 5.02%,
2/14/08 11,950 11,950
------------
FIDUCIARY BANKS ** (0.8%)
State Street Corp., 4.29%, 3/26/08 25,000 24,839
------------
FINANCE-AUTO LOANS ** (5.1%)
American Honda Finance Corp., 4.48%,
2/13/08 25,000 24,962
American Honda Finance Corp., 4.23%,
3/13/08 20,000 19,904
Toyota Motor Credit Co., 4.74%,
2/22/08 20,000 19,945
Toyota Motor Credit Co., 4.54%,
3/14/08 20,000 19,894
Toyota Motor Credit Co., 4.66%,
3/27/08 20,000 19,858
Toyota Motor Credit Co., 4.58%,
4/9/08 25,000 24,784
Toyota Motor Credit Co., 4.53%,
4/25/08 15,000 14,841
Toyota Motor Credit Co., 4.32%,
6/25/08 15,000 14,739
------------
158,927
------------
FINANCE-INVESTMENT BANKER/BROKER ** (6.7%)
BNP Paribas Financial, Inc., 3.13%,
2/1/08 85,000 85,000
BNP Paribas Financial, Inc., 3.66%,
6/23/08 25,000 24,637
Goldman Sachs Group, Inc. (The),
4.24%, 2/1/08 20,000 20,000
Goldman Sachs Group, Inc. (The),
4.75%, 2/12/08 15,000 14,978
JPMorgan Chase & Co., 3.50%,
4/22/08 25,000 24,803
Lehman Brothers Holdings, Inc.,
3.22%, 2/6/08 40,000 39,982
------------
209,400
------------
INTEGRATED OIL & GAS ** (2.7%)
BP Capital Markets PLC, 4.76%,
2/5/08 (b) 20,000 19,990
BP Capital Markets PLC, 4.49%,
3/27/08 (b) 20,000 19,863
BP Capital Markets PLC, 4.47%,
4/10/08 (b) 25,000 24,786
Total FINA Elf SA, 4.10%, 3/31/08 18,400 18,276
------------
82,915
------------
Continued
11
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER, CONTINUED
MEDICAL ** (0.8%)
Benedictine Health System, 5.10%,
3/12/08 $ 24,835 $ 24,694
------------
MONEY CENTER BANKS ** (6.0%)
Deutsche Bank Financial LLC, 3.13%,
2/1/08 75,000 75,000
Deutsche Bank Financial LLC, 3.09%,
2/29/08 20,000 19,952
Deutsche Bank Financial LLC, 4.79%,
3/12/08 25,000 24,867
Deutsche Bank Financial LLC, 3.77%,
4/21/08 25,000 24,791
UBS Financial, 4.81%, 2/25/08 7,175 7,152
UBS Financial, 3.15%, 5/12/08 11,600 11,497
UBS Financial, 4.12%, 5/12/08 25,000 24,711
------------
187,970
------------
REGIONAL AUTHORITY (1.6%)
Michigan State Multifamily Housing
Project, 4.85%, 10/28/08 25,000 25,000
San Jose International Airport,
3.30%, 2/7/08 ** 504 504
San Jose International Airport,
5.10%, 2/7/08 ** 25,051 25,029
------------
50,533
------------
SPECIAL PURPOSE BANKS ** (2.9%)
DEPFA Bank PLC, 3.17%, 4/11/08 (b) 25,000 24,846
Dexia Delaware LLC, 4.87%, 3/19/08 20,000 19,873
Dexia Delaware LLC, 4.50%, 3/31/08 25,000 24,815
Dexia Delaware LLC, 3.13%, 4/25/08 21,150 20,996
------------
90,530
------------
SPECIAL PURPOSE ENTITY ** (6.5%)
AIG Funding, Inc., 3.93%, 6/23/08 15,000 14,766
Natexis Banques Populaires, 3.12%,
5/8/08 25,000 24,790
Nestle Capital Corp., 3.00%, 3/6/08 (b) 38,500 38,391
Nestle Capital Corp., 4.48%,
5/22/08 20,000 19,724
Procter & Gamble International
Funding, 4.50%, 2/20/08 (b) 20,000 19,952
Procter & Gamble International
Funding, 4.22%, 3/14/08 (b) 25,000 24,877
Societe Generale, 5.12%, 3/10/08 25,000 24,865
Societe Generale, 4.76%, 4/4/08 15,000 14,875
Societe Generale, 3.85%, 4/15/08 20,000 19,842
------------
202,082
------------
SUPER-REGIONAL BANKS-U.S. ** (1.8%)
BankAmerica Corp., 4.58%, 3/17/08 15,000 14,914
BankAmerica Corp., 4.82%, 4/3/08 15,000 14,875
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
COMMERCIAL PAPER, CONTINUED
SUPER-REGIONAL BANKS-U.S., CONTINUED
Wells Fargo & Co., 3.17%, 3/18/08 $ 25,000 $ 24,899
------------
54,688
------------
TOTAL COMMERCIAL PAPER 1,388,448
------------
DEMAND NOTES (4.4%)
BUILDING PRODUCTION-CEMENT/AGGREGATE (a) (b) (d) (0.8%)
Sioux City Brick & Tile Co., 3.31%,
2/7/08, (LOC: U.S. Bancorp) 24,850 24,850
------------
FINANCIAL (a) (0.4%)
Cornerstone Funding Corp., 3.23%,
11/1/23, (LOC: Comerica) 4,159 4,159
Cornerstone Funding Corp., Series
2003-H, 3.66%, 1/1/34,
(LOC: U.S. Bancorp) 4,090 4,090
Praise Tabernacle Outreach, 3.31%,
6/1/24, (LOC: Comerica) 3,440 3,440
------------
11,689
------------
REAL ESTATE (a) (0.2%)
Appletree Properties LLC, 3.31%,
7/1/26, (LOC: Regions Bank) 5,645 5,645
------------
SPECIAL PURPOSE ENTITY (a) (d) (2.7%)
Baldwin County Sewer Service LLC,
3.31%, 2/7/08, (LOC: Regions Bank) 11,357 11,357
Capital Markets Access Co. LC, Series
2005, 3.35%, 2/6/08, (LOC: Suntrust) 6,980 6,980
Capital One Funding Corp., Series
2001-A, 3.35%, 2/7/08,
(LOC: JP Morgan) 2,914 2,914
Capital One Funding Corp., Series
2001-D, 3.35%, 2/7/08,
(LOC: JP Morgan) 470 470
CHF - Elon LLC, Series 2005, 3.30%,
2/7/08, (LOC: Regions Bank) (b) 6,950 6,950
Erickson Foundation, Inc. (The),
3.30%, 2/8/08, (LOC: FHLB) 25,000 25,000
Foster/Schweihofer Real Estate Co.
LLC, Series 2003, 3.45%, 2/7/08,
(LOC: Comerica) 7,215 7,215
Gulf Gate Apartments, Series 2003,
3.32%, 2/7/08, (LOC: Wells Fargo) (b) 4,000 4,000
J&S Properties, Inc., Series 2006,
3.31%, 2/7/08, (LOC: Regions Bank) 4,100 4,100
McCullough Snappy Service Oil, Series
2006, 3.31%, 2/7/08,
(LOC: Regions Bank) (b) 4,125 4,125
Metaltec Steel Abrasive Co., Series
2004, 3.60%, 2/6/08, (LOC: Comerica) 3,960 3,960
Northport Baptist Church, Series
2004, 3.31%, 2/7/08,
(LOC: Regions Bank) 2,800 2,800
Continued
12
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
DEMAND NOTES, CONTINUED
SPECIAL PURPOSE ENTITY, CONTINUED
Pershing Drive Associates LP, 3.15%,
2/7/08, (LOC: Royal Bank
of Canada) $ 3,945 $ 3,945
------------
83,816
------------
SUPER-REGIONAL BANKS-U.S. (a) (d) (0.3%)
Wells Fargo & Co., 4.32%, 2/15/08 10,000 10,000
------------
TOTAL DEMAND NOTES 136,000
------------
MUNICIPAL DEMAND NOTES (a) (d) (10.6%)
ARIZONA (0.2%)
Glendale Industrial Development
Authority, 3.35%, 2/7/08,
(LOC: Bank of New York) 6,250 6,250
------------
ARKANSAS (0.5%)
Northwest Regional Airport Authority,
Series A, 3.29%, 2/7/08,
(LOC: Regions Bank) 15,725 15,725
Northwest Regional Airport Authority,
Series B, 3.29%, 2/7/08,
(LOC: Regions Bank) 630 630
------------
16,355
------------
CALIFORNIA (0.5%)
County of Sacramento, 3.30%, 2/6/08,
(LOC: Bayerische Landesbank) 5,000 5,000
Kern Water Bank Authority, Series B,
3.32%, 2/7/08,
(LOC: Wells Fargo Bank NA) 4,348 4,348
Sacramento County Housing Authority,
Multi-Family, Natomas Park
Apartments, 3.18%, 2/7/08,
(LOC: FNMA) 1,650 1,650
Statewide Communities Development Authority,
Multi-Family, Valley Palms
Apartments, 3.16%, 2/1/08, (LOC:
FNMA), (Callable 1/31/08 @ 100) 2,545 2,545
Statewide Communities Development
Authority, Multi-Family Housing,
3.18%, 2/7/08, (LOC: FNMA) 1,000 1,000
------------
14,543
------------
COLORADO (0.1%)
Aurora Centretech Metropolitan
District, Series B, GO, 3.36%, 2/7/08,
(LOC: BNP Paribas) 2,765 2,765
------------
FLORIDA (0.6%)
City of Homestead, Speedway Project,
3.35%, 2/6/08, (LOC: SunTrust Bank) 7,780 7,780
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
FLORIDA, CONTINUED
Florida Development Finance Corp.,
Concrete Investments, 3.31%, 2/7/08,
(LOC: Amsouth Bank) (b) $ 9,300 $ 9,300
------------
17,080
------------
GEORGIA (0.5%)
Augusta Housing Authority,
Multi-Family, Westbury Creek
Apartments, 3.38%, 2/6/08,
(LOC: FNMA) 500 500
Georgia Municipal Gas Authority,
3.29%, 2/7/08,
(LOC: Wachovia Bank NA) 14,765 14,765
------------
15,265
------------
ILLINOIS (0.4%)
Finance Authority, Franciscan
Communities, Series B, 3.30%, 2/7/08,
(LOC: LaSalle Bank NA) 12,000 1,100
Illinois Finance Authority, 3.30%,
2/7/08, (LOC: LaSalle Bank NA) 1,100 12,000
------------
13,100
------------
INDIANA (1.2%)
City of Indianapolis Economic
Development, Multi-Family Housing,
Series B, 3.31%, 2/7/08, (LOC: Federal
Home Loan Bank) 970 970
Health Facility Financing Authority,
Clark Memorial Hospital, 3.35%,
2/7/08, (LOC: Bank One NA) 3,925 3,925
Health Facility Financing Authority,
Community Foundation of Northwest
Indiana, Series B, 3.30%, 2/7/08,
(LOC: LaSalle Bank NA) 22,410 22,410
Terre Haute, Westminister Village,
3.32%, 2/7/08,
(LOC: Sovereign Bank FSB) 9,300 9,300
------------
36,605
------------
KENTUCKY (0.2%)
Boone County, Northern Kentucky
University Metropolitan Education and
Training Services Center Project,
4.15%, 2/7/08, (LOC: U.S. Bank NA) 5,050 5,050
------------
LOUISIANA (0.3%)
St. Tammany Parish Economic &
Industrial Development District,
3.32%, 2/6/08, (LOC: Regions Bank) 9,220 9,220
------------
Continued
13
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MARYLAND (1.2%)
Health & Higher Educational
Facilities Authority, Adventist
Healthcare, 3.30%, 2/7/08,
(LOC: LaSalle Bank NA) $ 19,060 $ 19,060
Health & Higher Educational
Facilities Authority, Charlestown
Community, Series B, 3.30%,
2/6/08, (LOC: Bank of America NA) 17,400 17,400
------------
36,460
------------
MICHIGAN (0.1%)
Canton Charter Township, GO, 3.37%,
2/6/08, (LOC: Comerica Bank) 1,500 1,500
Charter Township of Ypsilanti Capital
Improvements, Series B, GO, 3.37%
2/6/08, (LOC: Comerica Bank) 2,280 2,280
------------
3,780
------------
MINNESOTA (0.2%)
City of Plymouth, Carlson Center
Project, 4.05%, 2/7/08,
(LOC: U.S. Bank NA) 1,000 1,000
St Paul Port Authority, Series S,
4.10%, 2/1/08,
(LOC: Dexia Credit Local) 3,495 3,495
------------
4,495
------------
MISSISSIPPI (0.5%) (b)
Business Finance Corp., Cellular
South, Inc., 3.35%, 2/6/08,
(LOC: Bank of America NA) 3,850 3,850
Business Finance Corp., Cellular
South, Inc., 3.35%, 2/7/08,
(LOC: Bank of America NA) 13,000 13,000
------------
16,850
------------
NEBRASKA (0.7%)
City of Omaha, Riverfront
Development, AMBAC, 6.25%, 2/6/08,
(LOC: Dexia) 22,000 22,000
------------
NEW MEXICO (0.2%)
City of Albuquerque Industrial, KTECH
Corp. Project, 3.32%, 2/7/08,
(LOC: Wells Fargo Bank NA) 4,805 4,805
1,600 1,600
------------
6,405
------------
NEW YORK (0.6%)
New York City Housing Development
Corp., Multi-Family Housing, Series
A, 3.30%, 2/6/08, (LOC: Bayerische
Landesbank 19,485 19,485
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
NORTH CAROLINA (0.2%)
Roman Catholic Diocese of Raleigh,
Series A, 3.31%, 2/7/08,
(LOC: Bank of America NA) $ 7,220 $ 7,220
------------
OHIO (1.2%)
Air Quality Development Authority,
Steel Corp., Series B, 3.30%, 2/6/08,
(LOC: ABN Amro Bank NV) 13,000 13,000
Cleveland-Cuyahoga County Port
Authority, 3.30%, 2/7/08,
(LOC: Keybank NA) 23,000 23,000
County of Cuyahoga Health Care
Facilities, Franciscan Communities,
3.31%, 2/7/08, (LOC: LaSalle
Bank NA 2,535 2,535
------------
38,535
------------
PENNSYLVANIA (0.1%)
Berks County Industrial Development
Authority, Lebanon Valley Mall,
3.38%, 2/6/08, (LOC: First Union
National Bank) (b) 1,300 1,300
Berks County Municipal Authority,
Phoebe-Devitt Homes, Series C, 3.31%,
2/7/08, (LOC: Sovereign Bank FSB) 2,830 2,830
------------
4,130
------------
TEXAS (0.4%)
Brazos Higher Education Authority,
Series 2007 A6, Guaranteed Student
Loans, 3.38%, 2/7/08, (LOC: Depfa) 12,000 12,000
------------
UTAH (0.2%)
Telecommunication Open Infrastructure
Agency, 3.35%, 2/7/08, (LOC: Bank of
America NA) 5,000 5,000
Tooele City Industrial Development,
Series A, 4.05%, 2/7/08, (LOC: U.S.
Bank NA) 1,400 1,400
------------
6,400
------------
VIRGINIA (0.3%)
Alexandria Industrial Development
Authority, American Academy of
Otolaryngology, 3.31%, 2/7/08,
(LOC: Bank of America NA) 8,690 8,690
------------
WASHINGTON (0.1%)
State Housing Finance Commission,
Multi-Family, Granite Falls
Retirement Plaza, 3.46%, 2/7/08,
(LOC: Wells Fargo Bank NA) 1,030 1,030
Continued
14
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
WASHINGTON, CONTINUED
State Housing Finance Commission,
Multi-Family, Sir Summer Ridge
Associates, 4.10%, 2/1/08,
(LOC: U.S. Bank NA) $ 605 $ 605
State Housing Finance Commission,
Multi-Family, Vintage At Everett,
3.17%, 2/7/08, (LOC: FNMA) 2,000 2,000
------------
3,635
------------
WISCONSIN (0.1%)
Health & Educational Facilities
Authority, Upland Hills, Series D,
3.30%, 2/6/08, (LOC: Allied Irish
Bank PLC) 2,490 2,490
------------
TOTAL MUNICIPAL DEMAND NOTES 328,808
------------
SHARES
----------
MONEY MARKETS (c) (5.5%)
AIM STIT Liquid Assets Portfolio 76,030,347 76,030
Goldman Sachs Financial Square
Funds - Prime Obligations Fund 96,083,609 96,084
------------
TOTAL MONEY MARKETS 172,114
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
REPURCHASE AGREEMENTS (11.4%)
Deutsche Bank, 2.85%, dated 1/31/08,
due 2/1/08, (Proceeds at maturity,
$265,021, Collateralized by various U.S.
Government Agency Securities,
4.63%-5.75%, 3/15/12-12/7/28,
value $266,832) $ 265,000 $ 265,000
UBS Investment Bank, 2.82%, dated
1/31/08, due 2/1/08, (Proceeds at
maturity, $90,015, Collateralized by
various U.S. Government Agency
Securities, 0.00%-3.82%, 2/22/12-
11/29/19, value $91,815) 90,013 90,013
-----------
TOTAL REPURCHASE AGREEMENTS 355,013
-----------
TOTAL INVESTMENTS (COST $3,137,861)+ - 100.9% 3,137,861
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.9)% (29,165)
-----------
NET ASSETS - 100.0% $ 3,108,696
===========
NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS
** Rate represents the effective yield at purchase.
+ Also represents cost for federal income tax purposes.
(a) Variable rate security. Rate presented represents rate in effect at January
31, 2008.
(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 reset date.
The following abbreviations are used in the Schedule of Investments:
AMBAC - American Municipal Bond Assurance Corp.
FNMA - Federal National Mortgage Association
GO - General Obligation
LOC - Letter of Credit
See notes to financial statements.
15
INSTITUTIONAL GOVERNMENT MONEY MARKET
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MORTGAGE-BACKED SECURITIES (a) (d) (3.9%)
CMBS OTHER (3.9%)
Freddie Mac, 5.01%, 2/6/08 $ 46,246 $ 46,246
------------
TOTAL MORTGAGE-BACKED SECURITIES 46,246
------------
U.S. GOVERNMENT AGENCIES (68.3%)
FANNIE MAE (12.0%)
3.88%, 2/1/08 5,000 5,000
4.75%, 2/1/08 5,450 5,450
5.40%, 2/1/08 3,545 3,545
4.21%, 2/7/08 ** 20,000 19,986
5.75%, 2/15/08 14,401 14,405
5.10%, 2/22/08 2,000 2,000
5.00%, 2/27/08 5,150 5,149
5.13%, 2/28/08 3,500 3,499
4.20%, 3/24/08 1,365 1,363
4.29%, 3/26/08 ** 9,521 9,460
3.45%, 4/9/08 ** 23,168 23,017
4.88%, 4/10/08 10,000 10,000
2.86%, 4/21/08 ** 15,000 14,905
3.05%, 4/30/08 ** 15,000 14,887
4.30%, 5/5/08 1,600 1,599
6.00%, 5/15/08 5,000 5,009
3.21%, 11/28/08 3,200 3,203
------------
142,477
------------
FEDERAL FARM CREDIT BANK (3.0%)
3.85%, 2/18/08 (a) (d) 8,545 8,544
3.75%, 2/23/08 (a) (d) 20,000 20,000
2.80%, 3/25/08 4,500 4,485
2.96%, 6/23/08 ** 2,020 1,996
------------
35,025
------------
FEDERAL HOME LOAN BANK (37.3%)
5.25%, 2/5/08 5,830 5,830
2.60%, 2/6/08 (a) (d) 13,730 13,729
4.80%, 2/6/08 ** 6,000 5,996
4.33%, 2/8/08 ** 10,000 9,992
4.15%, 2/12/08 (a) (d) 11,000 11,000
4.34%, 2/13/08 ** 10,000 9,986
4.16%, 2/14/08 (a) (d) 15,000 14,999
4.78%, 2/17/08 (a) (d) 4,000 4,000
4.81%, 2/20/08 (a) (d) 12,000 12,000
4.78%, 2/21/08 (a) (d) 11,140 11,140
5.00%, 2/29/08 2,010 2,010
4.90%, 3/4/08 (a) (d) 20,000 20,009
4.88%, 3/5/08 3,230 3,230
4.00%, 3/10/08 21,780 21,764
3.70%, 3/14/08 ** 20,705 20,616
4.84%, 3/17/08 (a) (d) 2,000 2,000
4.27%, 3/19/08 ** 10,000 9,944
4.77%, 3/20/08 (a) (d) 15,000 14,995
2.90%, 3/24/08 2,000 1,993
4.16%, 3/24/08 ** 35,500 35,284
3.38%, 3/26/08 3,000 2,992
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK, CONTINUED
3.03%, 3/28/08 ** $ 15,000 $ 14,929
3.98%, 3/31/08 ** 14,449 14,352
4.52%, 4/2/08 (a) (d) 20,000 20,009
4.43%, 4/7/08 3,750 3,750
5.00%, 4/9/08 7,310 7,307
4.60%, 4/11/08 5,000 5,002
3.65%, 4/16/08 ** 15,000 14,886
5.13%, 4/16/08 10,000 10,007
4.13%, 4/18/08 6,745 6,731
3.62%, 4/25/08 2,000 1,992
4.80%, 5/2/08 3,500 3,503
4.10%, 6/13/08 5,000 4,996
5.13%, 6/13/08 15,375 15,489
5.13%, 6/18/08 8,900 8,952
5.00%, 7/16/08 5,000 5,012
5.25%, 7/17/08 10,000 10,104
4.50%, 8/8/08 6,100 6,102
3.88%, 8/22/08 6,315 6,298
4.65%, 8/22/08 3,124 3,118
4.25%, 9/12/08 8,650 8,641
4.25%, 9/26/08 1,000 999
4.50%, 11/5/08, W/I 4,000 4,000
4.50%, 11/7/08 12,430 12,477
3.63%, 11/14/08 2,000 2,014
4.63%, 12/4/08 7,500 7,500
3.25%, 1/9/09 8,000 7,999
------------
439,678
------------
FREDDIE MAC (14.3%)
3.63%, 2/15/08 7,308 7,305
4.33%, 2/21/08 ** 15,000 14,964
4.63%, 2/21/08 16,275 16,275
3.25%, 2/25/08 17,000 16,982
4.22%, 2/25/08 ** 5,200 5,185
3.14%, 2/26/08 (a) (d) 20,000 19,999
5.13%, 2/27/08 4,340 4,340
4.00%, 3/17/08 ** 15,000 14,925
4.55%, 3/28/08 ** 9,694 9,625
3.35%, 4/1/08 2,925 2,916
5.75%, 4/15/08 5,050 5,056
3.93%, 4/25/08 ** 3,310 3,280
3.85%, 4/30/08 ** 15,000 14,857
3.63%, 5/9/08 4,000 3,988
3.50%, 5/21/08 5,000 4,973
3.80%, 6/4/08 ** 15,000 14,804
4.25%, 6/23/08 1,200 1,198
4.88%, 9/12/08 4,000 4,034
5.00%, 9/16/08 4,095 4,113
------------
168,819
------------
Continued
16
INSTITUTIONAL GOVERNMENT MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
OVERSEAS PRIVATE INVESTMENT CORP. (a) (d) (1.7%)
3.15%, 2/6/08, Series 165A (b) $ 5,150 $ 5,150
3.15%, 2/6/08, Series 2003 15,000 15,000
------------
20,150
------------
TOTAL U.S. GOVERNMENT AGENCIES 806,149
------------
SHARES
-----------
MONEY MARKETS (c) (0.2%)
AIM STIT Government & Agency
Portfolio 2,240,900 2,241
Goldman Sachs Financial Square
Government Fund 4,450 4
------------
TOTAL MONEY MARKETS 2,245
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
REPURCHASE AGREEMENTS (27.4%)
Bank of America Securities, LLC, 2.81%,
dated 1/31/08, due 2/1/08, (Proceeds
at maturity, $35,003, Collateralized
by various U.S. Government Agency
Securities, 0.00%, 9/26/08,
value $35,701) $ 35,000 $ 35,000
Deutsche Bank, 2.85%, dated 1/31/08,
due 2/1/08, (Proceeds at maturity,
$200,016, Collateralized by various
U.S. Government Agency Securities,
3.88%-6.25%, 4/15/08-9/14/26,
value $200,976) 200,000 200,000
UBS Investment Bank, 2.82%, dated
1/31/08, due 2/1/08, (Proceeds at
maturity, $87,258 Collateralized by
various U.S. Government Agency
Securities, 3.10%-5.15%,
1/2/09-2/22/12, value $89,004) 87,257 87,257
------------
TOTAL REPURCHASE AGREEMENTS 322,257
------------
TOTAL INVESTMENTS (COST $1,176,897)+ - 99.8% $ 1,176,897
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 2,931
------------
NET ASSETS - 100.0% $ 1,179,828
============
NOTES TO SCHEDULE OF INVESTMENTS
** Rate represents the effective yield at purchase.
+ Also represents cost for federal income tax purposes.
(a) Variable rate security. Rate presented represents rate in effect at January
31, 2008.
(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 reset date.
The following abbreviation is used in the Schedule of Investments:
W/I - When Issued
See notes to financial statements.
17
U.S. TREASURY MONEY MARKET
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
TREASURY BILLS ** (9.1%)
4.01%, 2/21/08 $ 15,000 $ 14,968
3.87%, 4/24/08 15,000 14,866
3.20%, 5/1/08, W/I 40,000 39,652
3.20%, 6/12/08 15,000 14,824
3.29%, 6/19/08 40,000 39,495
------------
TOTAL TREASURY BILLS 123,805
------------
TREASURY NOTES (12.5%)
4.63%, 2/29/08 10,000 9,997
4.88%, 4/30/08 30,000 29,971
3.75%, 5/15/08 20,000 19,944
5.13%, 6/30/08 20,000 20,060
5.00%, 7/31/08 30,000 30,231
4.13%, 8/15/08 20,000 20,000
4.63%, 9/30/08 20,000 20,168
4.88%, 10/31/08 20,000 20,204
------------
TOTAL TREASURY NOTES 170,575
------------
SHARES
-----------
MONEY MARKETS (a) (0.1%)
AIM STIT Treasury Portfolio 258,460 259
Goldman Sachs Financial Square
Treasury Obligations Fund 1,679,065 1,679
------------
TOTAL MONEY MARKETS 1,938
------------
PRINCIPAL
AMOUNT
-----------
REPURCHASE AGREEMENTS (78.5%)
ABN AMRO, 1.65%, dated 1/31/08,
due 2/1/08, (Proceeds at maturity,
$240,011, Collateralized by various U.S.
Treasury Securities, 2.13%, 1/31/10,
value $244,801) $ 240,000 240,000
Barclays Capital, 2.00%, dated 1/31/08,
due 2/1/08, (Proceeds at maturity,
$75,004, Collateralized by various U.S.
Treasury Securities, 3.88%, 1/15/09,
value $76,374) 75,000 75,000
BMO Nesbitt Burns, 1.65%, dated
1/31/08, due 2/1/08, (Proceeds at
maturity, $250,011, Collateralized by
various U.S. Treasury Securities,
0.00%-12.50%, 2/7/08-5/15/37,
value $253,222) 250,000 250,000
Deutsche Bank, 1.75%, dated 1/31/08,
due 2/1/08, (Proceeds at maturity,
$280,014, Collateralized by various U.S.
Treasury Securities, 2.50%, 7/15/16,
value $285,314) 280,000 280,000
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
REPURCHASE AGREEMENTS, CONTINUED
UBS Investment Bank, 1.60%, dated
1/31/08, due 2/1/08, (Proceeds at
maturity, $228,072, Collateralized by
various U.S. Government Agency
Securities, 5.38%-8.75%,
8/15/20-2/15/31, value $232,633) $ 228,067 $ 228,067
-----------
TOTAL REPURCHASE AGREEMENTS 1,073,067
-----------
TOTAL INVESTMENTS (COST $1,369,385)+ - 100.2% 1,369,385
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (2,796)
-----------
NET ASSETS - 100.0% $ 1,366,589
===========
NOTES TO SCHEDULE OF INVESTMENTS
** Rate represents the effective yield at purchase.
(a) Investment is in Institutional Shares of underlying fund/portfolio.
+ Also represents cost for federal income tax purposes.
The following abbreviation is used in the Schedule of Investments:
W/I - When Issued
See notes to financial statements.
18
MICHIGAN MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS (6.9%)
MICHIGAN (6.9%)
Ecorse Public School District, FGIC,
GO, Q-SBLF, 6.50%, 5/1/08 $ 500 $ 503
Farmington Hills Economic Development
Corp., Marketing Displays Project,
AMT, 4.18%, 3/1/08, (LOC: Comerica
Bank) (a) (d) 50 50
Michigan State Building Authority,
3.48%, 2/21/08, (LOC: Bank of New
York (60%), State Street Bank &
Trust Co. (40%)) (a) 5,155 5,155
Municipal Bond Authority, Series B-2,
4.50%, 8/20/08, (LOC: Scotia Bank) 3,000 3,013
Municipal Bond Authority, Clean Water
Revolving Fund, 5.00%, 10/1/08 360 363
Municipal Bond Authority, Government
Loan Program, 5.00%, 5/1/08,
(LOC: Ambac) 500 502
Novi Street and Highway, FSA, GO,
5.00%, 10/1/08 2,320 2,355
Public Educational Facilities
Authority, Series A, 5.00%, 6/24/08,
(LOC: Charter One Bank NA) 2,500 2,511
Saline Area Schools, FGIC, GO
Q-SBLF, 6.00%, 5/1/08 300 302
State Housing Development Authority,
Parkway Meadows Project, 3.50%,
10/15/08, FSA 930 936
State Housing Development Authority,
Rental Housing, Series B, AMT, FSA,
3.70%, 4/1/08 1,030 1,030
State Housing Development Authority,
Rental Housing, Series D, AMT, GO
3.63%, 10/1/08 530 530
State of Michigan, Series A, 4.00%,
9/30/08, (LOC: Depfa Bank PLC) 1,000 1,007
State of Michigan Comprehensive
Transportation, Series A, FSA, 5.25%,
5/15/08 240 241
Washenaw County, Northfield Sewer
Systems, GO, 4.25%, 5/1/08 225 225
------------
TOTAL MUNICIPAL BONDS 18,723
------------
MUNICIPAL DEMAND NOTES (83.3%)
GEORGIA (1.5%)
Macon-Bibb County Hospital Authority,
1.80%, 2/1/08, (LOC: SunTrust
Bank) (a) (d) 4,000 4,000
------------
INDIANA (2.6%)
Development Finance Authority,
Republic Services, Inc. Project,
AMT, VA, 1.85%, 2/1/08,
(LOC: SunTrust Bank) (a) (d) 7,000 7,000
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MICHIGAN (70.4%)
City of Detroit, Solid Waste Removal,
Series B, FSA, 2.00%, 2/1/08,
(LOC: Dexia) (a) (d) $ 400 $ 400
City of Grand Rapids, Clipper Belt
Lacer Co., Project, AMT, 2.25%,
2/7/08, (LOC: Bank of America
NA) (a) (d) 6,000 6,000
Detroit Economic Development Corp.,
Waterfront Reclaimation, 2.20%,
2/7/08, (LOC: National City Bank
Midwest) (a) (d) 6,400 6,400
Detroit Economic Development Corp.,
Waterfront Reclamation, Series A,
2.15%, 2/7/08, (LOC: Deutsche Bank
AG) (a) (d) 500 500
Genesee County Economic Development
Corp., Rawcar Group Project, AMT,
2.37%, 2/7/08, (LOC: National City
Bank MI/IL) (a) (d) 2,005 2,005
Higher Education Facilities
Authority, Adrian College, 2.26%,
2/7/08, (LOC: Comerica Bank) (a) (d) 565 565
Higher Education Facilities
Authority, Thomas M Cooley Law
School, GO, 5.35%, 5/1/15, (LOC:
National City Bank Midwest),
(Prerefunded 5/1/08 @ 101) 1,200 1,224
Higher Education Facilities
Authority, University of Detroit
Mercy, 1.90%, 2/1/08, (LOC: JP
Morgan Chase Bank) (a) (d) 6,070 6,070
Livonia Economic Development Corp.,
Madonna University Project, 2.82%,
2/1/08, (LOC: RBS Citizens NA) (a) (d) 4,000 4,000
Macomb County Hospital Finance
Authority, Mount Clemens General
Hospital, Series A-1, 1.93%, 2/1/08,
(LOC: Comerica Bank) (a) (d) 9,085 9,085
Mancelona Area Water & Sewer
Authority, 2.31%, 2/7/08,
(LOC: National City Bank MI/IL) (a) (d) 890 890
Marquette City Hospital Finance
Authority, Marquette General
Hospital, 2.23%, 2/7/08, (LOC: U.S.
Bank NA) (a) (d) 1,140 1,140
Marquette County Economic Development
Corp., Pioneer Laboratories, Series
A, AMT, 3.03%, 2/6/08, (LOC: JP Morgan
Chase & Co.) (a) (d) 550 550
Oakland County Economic Development
Corp., Cadillac Iron, Inc. Project,
AMT, 2.35%, 2/7/08, (LOC: Comerica
Bank) (a) (d) 700 700
Oakland County Economic Development
Corp., Graph-Tech, Inc. Project, AMT,
2.30%, 2/7/08, (LOC: Bank of
America NA) (a) (d) 1,325 1,325
Continued
19
MICHIGAN MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MICHIGAN, CONTINUED
Oakland County Economic Development
Corp., IBC North America, Inc.
Project, AMT, 2.35%, 2/7/08,
(LOC: Comerica Bank) (a) (b) (d) $ 980 $ 980
Oakland County Economic Development
Corp., Moody Family, Ltd. Project,
AMT, 2.36%, 2/6/08, (LOC: JP Morgan
Chase Bank) (a) (b) (d) 2,000 2,000
Saline Economic Development Corp.,
Brecon Village Project, 2.24%,
2/6/08, (LOC: JP Morgan Chase
Bank) (a) (d) 2,900 2,900
Southfield Economic Development
Corp., Lawrence Technological
University Project, 2.24%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (d) 3,015 3,015
State Building Authority, Multi-Modal
Facilities Program IIA, 2.17%,
2/7/08, (LOC: Depfa Bank PLC) (a) (b) (d) 3,890 3,890
State Building Authority, Multi-Modal
Facilities Program IIB, 2.17%,
2/7/08, (LOC: Depfa Bank
PLC) (a) (d) 3,895 3,895
State Hospital Finance Authority,
Balmoral, 3.90%, 9/1/08, (LOC:
Comerica Bank), (Mandatory Put
9/1/08 @ 100) (a) (b) (d) 415 415
State Hospital Finance Authority,
Crittenton Hospital, 2.17%, 2/1/08,
(LOC: Comerica Bank) (a) (d) 2,510 2,510
State Hospital Finance Authority,
Crittenton Hospital, Series A, 2.17%,
2/1/08, (LOC: Comerica Bank) (a) (d) 1,500 1,500
State Hospital Finance Authority,
Henry Ford Health System, 2.12%,
2/6/08, (LOC: Charter One Bank
FSB) (a) (d) 12,550 12,550
State Hospital Finance Authority,
North Ottawa Care Center, 2.26%,
2/7/08, (LOC: National City Bank
Midwest) (a) (d) 2,185 2,185
State Housing Development Authority,
Hunt Club Apartments, AMT, 2.32%,
2/7/08, (LOC: FNMA) (a) (d) 475 475
State Housing Development Authority,
Jewish Apartments and Services
Nonprofit Housing, 2.23%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (d) 5,200 5,200
State Housing Development Authority,
Multi-Family, Series A, AMT, 2.29%,
2/7/08, (LOC: Federal Home Loan
Bank) (a) (d) 6,810 6,810
State Housing Development Authority,
River Park Village Senior Apartments,
Series B, AMT, 2.26%, 2/7/08,
(LOC: National City Bank) (a) (d) 3,000 3,000
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Agape Plastics, Inc.
Project, AMT, 2.50%, 2/6/08,
(LOC: U.S. Bank NA) (a) (d) $ 2,200 $ 2,200
Strategic Fund, APS Kundinger
Project, AMT, 2.35%, 2/7/08,
(LOC: JP Morgan Chase
Bank) (a) (b) (d) 1,070 1,070
Strategic Fund, Artex Label &
Graphics, AMT, 2.30%, 2/7/08,
(LOC: U.S. Bank NA) (a) (d) 1,240 1,240
Strategic Fund, Aspen Realty LLC
Project, AMT, 2.65%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 100 100
Strategic Fund, Automatic Spring
Products Project, AMT, 3.03%, 2/6/08,
(LOC: Bank of America NA) (a) (d) 350 350
Strategic Fund, Banks Hardwoods, Inc.
Project, AMT, 2.31%, 2/7/08,
(LOC: KeyBank NA) (a) (b) (d) 552 552
Strategic Fund, Besser International
Sales Co. Project, AMT, 2.50%,
2/6/08, (LOC: Bank of America
NA) (a) (b) (d) 100 100
Strategic Fund, Biewer of Lansing LLC
Project, AMT, 2.31%, 2/7/08,
(LOC: Bank of America NA) (a) (b) (d) 380 380
Strategic Fund, BK Real Estate LLC
Project, AMT, 3.10%, 1/31/08,
(LOC: Bank of America NA) (a) (d) 1,990 1,990
Strategic Fund, Bowers Manufacturing
Co. Project, AMT, 2.50%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 300 300
Strategic Fund, Cayman Chemical Co.
Project, AMT, 2.31%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 760 760
Strategic Fund, Continental Carbonic
Products, AMT, 2.20%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (d) 6,860 6,860
Strategic Fund, Creative Foam Corp.
Project, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase
Bank) (a) (b) (d) 2,000 2,000
Strategic Fund, Delta Containers,
Inc. Project, AMT, 2.50%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (d) 1,500 1,500
Strategic Fund, Diagnostic Real
Estate LLC, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 500 500
Strategic Fund, Donnelly Corp.
Project, Series B, AMT, VA, 3.85%,
4/1/08, (LOC: Bank of Nova Scotia),
(Callable 4/1/08 @ 100) (a) (b) (d) 2,500 2,500
Strategic Fund, Eclipse Mold, Inc.
Project, AMT, 2.65%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 200 200
Strategic Fund, Emerson School
Project, 2.24%, 2/7/08, (LOC:
KeyBank NA) (a) (b) (d) 2,455 2,455
Continued
20
MICHIGAN MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Father Gabriel
Highschool Project, 2.15%, 2/7/08,
(LOC: Allied Irish Bank PLC) (a) (d) $ 4,800 $ 4,800
Strategic Fund, Fitz-Land LLC
Project, AMT, 2.37%, 2/7/08,
(LOC: National City Bank MI/IL) (a) (d) 2,005 2,005
Strategic Fund, Flyer Fund Leasing
LLC Project, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 1,065 1,065
Strategic Fund, Forest City
Technologies, AMT, 2.37%, 2/7/08,
(LOC: National City Bank) (a) (d) 1,160 1,160
Strategic Fund, Frank Street LLC
Project, AMT, 2.30%, 2/7/08,
(LOC: Bank of America NA) (a) (d) 1,750 1,750
Strategic Fund, Frederick Wolfgang
Industries Project, AMT, 2.31%,
2/7/08, (LOC: U.S. Bank NA) (a) (d) 765 765
Strategic Fund, Gebara Management Co.
LLC Project, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 300 300
Strategic Fund, Glastender, Inc.
Project, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 215 215
Strategic Fund, Harbor Industries,
Inc. Project, AMT, 3.03%, 2/6/08,
(LOC: Bank of America NA) (a) (d) 400 400
Strategic Fund, Heartland Goodwill
Project, 2.25%, 2/7/08, (LOC: Bank of
America NA) (a) (d) 1,000 1,000
Strategic Fund, J. G. Kern
Enterprises Project, AMT, 2.25%,
2/7/08, (LOC: Bank of America
NA) (a) (d) 3,950 3,950
Strategic Fund, Jet Enterprises LLC
Project, 2.25%, 2/7/08, (LOC: Bank of
America NA) (a) (b) (d) 400 400
Strategic Fund, John H. Dekker and
Sons Project, AMT, 2.31%, 2/7/08,
(LOC: Bank of America NA) (a) (d) 290 290
Strategic Fund, Joy Properties LLC
Project, 2.36%, 2/6/08, (LOC: JP Morgan
Chase Bank) (a) (b) (d) 480 480
Strategic Fund, Landscape Forms, Inc.
Project, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 200 200
Strategic Fund, Lansing Saint Vincent
Home Project, 2.15%, 2/7/08,
(LOC: Comerica Bank) (a) (d) 2,555 2,555
Strategic Fund, Lions Bear Lake Camp
Project, 2.36%, 2/7/08, (LOC: National
City Bank MI/IL) (a) (b) (d) 975 975
Strategic Fund, Louisiana-Pacific
Corp., 2.20%, 2/7/08, (LOC: Wachovia
Bank NA) (a) (d) 2,975 2,975
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, MacArthur Corp.
Project, AMT, 2.36%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (d) $ 1,900 $ 1,900
Strategic Fund, Maco Steel Project,
AMT, 2.31%, 2/7/08, (LOC: Comerica
Bank) (a) (d) 1,510 1,510
Strategic Fund, Merrill Group
Project, AMT, 2.37%, 2/7/08,
(LOC: Bank of America NA) (a) (b) (d) 1,000 1,000
Strategic Fund, Middleville Tool and
Die Project, AMT, 2.50%, 2/6/08,
(LOC: U.S. Bank NA) (a) (b) (d) 1,500 1,500
Strategic Fund, Midwest Kellering Co.
Project, AMT, 2.50%, 2/6/08,
(LOC: National City Bank) (a) (b) (d) 1,300 1,300
Strategic Fund, MOT LLC Project,
2.25%, 2/7/08, (LOC: JP Morgan
Chase Bank) (a) (d) 965 965
Strategic Fund, Non-Ferrous Cast
Alloys Project, AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (d) 335 335
Strategic Fund, Oak Project, AMT,
2.35%, 2/7/08, (LOC: U.S.
Bank NA) (a) (b) (d) 145 145
Strategic Fund, Patten Monument
Project, AMT, 2.31%, 2/1/08,
(LOC: U.S. Bancorp) (a) (d) 560 560
Strategic Fund, Peachwood Center
Associates, 2.15%, 2/6/08,
(LOC: Comerica Bank) (a) (d) 2,030 2,030
Strategic Fund, Phipps Emmett
Associates LLC Project, AMT, 3.03%,
2/6/08, (LOC: Bank of America
NA) (a) (d) 2,000 2,000
Strategic Fund, Premier Property
Holdings, AMT, 2.25%, 2/7/08,
(LOC: Bank of America NA) (a) (d) 2,490 2,490
Strategic Fund, Production
Engineering Project, AMT, 2.30%,
2/7/08, (LOC: Bank of America
NA) (a) (b) (d) 1,200 1,200
Strategic Fund, Profile Industrial
Packaging, AMT, 2.30%, 2/7/08,
(LOC: National City Bank) (a) (d) 785 785
Strategic Fund, R.A. Rink LLC
Project, AMT, 2.65%, 2/6/08,
(LOC: Bank of America NA) (a) (b) (d) 840 840
Strategic Fund, R.L. Adams Plastics,
Inc. Project, AMT, 2.35%, 2/7/08,
(LOC: Comerica Bank) (a) (b) (d) 1,130 1,130
Strategic Fund, RL Enterprises LLC
Project, AMT, 2.65%, 2/7/08,
(LOC: Comerica Bank) (a) (b) (d) 200 200
Strategic Fund, SFI Acquisition, Inc.
Project, AMT, 2.35%, 2/7/08,
(LOC: National City Bank) (a) (b) (d) 830 830
Continued
21
MICHIGAN MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MICHIGAN, CONTINUED
Strategic Fund, Solid Waste Disposal,
Grayling Generating Project, AMT,
2.03%, 2/6/08, (LOC: Barclays Bank
New York) (a) (d) $ 2,612 $ 2,612
Strategic Fund, Stegner East
Investments LLC Project, AMT, 2.35%,
2/7/08, (LOC: Comerica
Bank) (a) (b) (d) 2,985 2,985
Strategic Fund, Thompson Family
Holdings, AMT, 2.47%, 2/7/08,
(LOC: National City Bank MI/IL) (a) (d) 810 810
Strategic Fund, Trenton Forging Co.
Project, AMT, 2.30%, 2/7/08,
(LOC: Bank of America NA) (a) (b) (d) 815 815
Strategic Fund, Ultra Tech Printing
Co., AMT, 2.31%, 2/1/08, (LOC: U.S.
Bank NA) (a) (d) 930 930
Strategic Fund, Waltec American
Forgings, AMT, 2.50%, 2/7/08, (LOC:
JP Morgan Chase Bank) (a) (b) (d) 1,315 1,315
Strategic Fund, Warren Screw
Products, Inc. Project, AMT, 2.50%,
2/6/08, (LOC: JP Morgan Chase
Bank) (a) (b) (d) 400 400
Strategic Fund, Whitehall Industries,
Inc., AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (a) (b) (d) 900 900
Strategic Fund, Whitehall Industries,
Inc. Project, AMT, 2.30%, 2/7/08,
(LOC: JP Morgan Chase Bank) (a) (d) 3,400 3,400
Strategic Fund, Wright-K Technology,
Inc. Project, AMT, 2.42%, 2/7/08,
(LOC: Comerica Bank) (a) (b) (d) 495 495
Strategic Fund, YMCA of Metro Detroit
Project, 2.32%, 2/7/08, (LOC: JP
Morgan Chase Bank) (a) (d) 1,000 1,000
University of Michigan Hospital,
Series A, 1.95%, 2/1/08, (LOC:
University of Michigan) (a) (d) 1,780 1,780
University of Michigan Hospital,
Series A-2, 1.95%, 2/1/08,
(LOC: University of Michigan) (a) (d) 6,600 6,600
University of Michigan, Medical
Service Plan, 1.95%, 2/1/08,
(LOC: University of Michigan) (a) (d) 2,500 2,500
Wayne Charter County Airport Revenue,
MBIA, 5.00%, 12/1/28, (Prerefunded
12/1/08 @ 101) 1,000 1,028
------------
190,811
------------
NEW MEXICO (a) (d) (1.0%)
Farmington Pollution Control Revenue,
Series C, AMT, 1.98%, 2/1/08,
(LOC: Barclays Bank PLC) 2,600 2,600
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
NORTH CAROLINA (a) (d) (0.8%)
Capital Facilities Finance Agency,
Republic Services, Inc., AMT, 1.85%,
2/1/08, (LOC: SunTrust Bank) $ 2,200 $ 2,200
------------
OREGON (a) (d) (5.1%)
State of Oregon, Newsprint Project,
Series 197, AMT, 1.85%, 2/1/08,
(LOC: Toronto - Dominion Bank) 6,000 6,000
State of Oregon, Newsprint Project,
Series 203, AMT, 1.85%, 2/1/08,
(LOC: Toronto - Dominion Bank) 8,000 8,000
------------
14,000
------------
PUERTO RICO (a) (b) (d) (1.9%)
Industrial Medical and Environmental
Pollution Control Facilities Financing
Authority, Abbott Laboratories,
3.95%, 3/1/08, (LOC:
Abbott), (Callable 3/1/08 @ 100) 5,195 5,195
------------
TOTAL MUNICIPAL DEMAND NOTES 225,806
------------
SHARES
-----------
MONEY MARKETS (c) (9.6%)
AIM TFIT Tax-Free Cash Reserve
Portfolio, Class C 1,303 1
Dreyfus Tax Exempt Cash Management
23,585,934 23,586
Goldman Sachs Financial Square
Tax-Free Money Market Fund 2,389,310 2,389
Merrill Lynch Institutional
Tax-Exempt Fund 492 1
------------
TOTAL MONEY MARKETS 25,977
------------
TOTAL INVESTMENTS (COST $270,506)+ - 99.8% 270,506
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 557
------------
NET ASSETS - 100.0% $ 271,063
============
Continued
22
MICHIGAN MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS
+ Also represents cost for federal income tax purposes.
(a) Variable rate security. Rate presented represents rate in effect at January
31, 2008.
(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 reset date.
The following abbreviations are used in the Schedule of Investments:
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax Paper
FGIC - Financial Guaranty Insurance Co.
FMNA - Federal National Mortgage Association
FSA - Financial Security Assurance, Inc.
GO - General Obligation
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance
VA - Department of Veteran Affairs
Continued
INVESTMENT CONCENTRATION AS A PERCENTAGE OF
NET ASSETS BY INDUSTRY:
Airport 0.4%
Cash & Cash Equivalents 9.6%
Development 5.5%
Education 4.4%
Facilities 3.6%
General 3.3%
General Obligation 1.5%
Higher Education 5.0%
Housing 0.3%
Industrials 28.9%
Medical 15.8%
Metal-Diversified 0.6%
Multifamily Housing 6.3%
Pollution 2.9%
Regional Authority 1.9%
Resource Recovery 6.0%
Retirement/Aged Care 2.5%
Transportation 1.0%
Utilities 0.3%
See notes to financial statements.
23
MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS (4.4%)
COLORADO (0.3%)
Denver City and County Airport,
Series D, AMT, FSA, 5.00%,
11/15/2008 $ 1,020 $ 1,040
------------
FLORIDA (0.1%)
Florida State Division of Bond
Finance, Series 2000 B, FSA,
5.50%, 7/1/08 440 445
------------
ILLINOIS (0.3%)
Chicago Housing Authority, ETM,
FSA-CR, 5.00%, 7/1/08 1,000 1,005
------------
INDIANA (1.0%)
Avon Community School Building Corp.,
AMBAC, 4.25%, 7/15/08 (d) 780 783
Indianapolis Local Public Improvement
Bond Bank, Series D, 5.00%,
2/1/08 700 700
Knox School Building Corp., MBIA,
4.00%, 7/15/08 125 125
Lake County Building Corp., MBIA,
4.75%, 8/1/08 600 603
Western Boone Multi-School Building
Corp., FSA, GO, W/I, 3.50%,
1/10/09 685 691
Westfield High School Building Corp.,
FSA, 4.00%, 7/10/08 825 827
------------
3,729
------------
KENTUCKY (0.5%)
Kenton County Airport Board, Series
C, AMT, MBIA, 5.00%, 3/1/08,
(LOC: MBIA) 1,785 1,787
------------
MICHIGAN (0.8%)
Municipal Bond Authority, Series B-2,
4.50%, 8/20/08, (LOC: Scotia Bank) 2,000 2,009
State Hospital Finance Authority,
Edward W. Sparrow Hospital, 5.25%,
11/15/08 1,125 1,142
------------
3,151
------------
NORTH CAROLINA (0.2%)
City of Charlotte, Douglas
International Airport, Series A,
AMBAC, 4.00%, 7/1/08 725 726
------------
OHIO (0.1%)
County of Fairfield, Airport
Improvement, AMT, 4.55%, 4/1/08 300 300
------------
TEXAS (1.1%)
Dallas-Fort Worth International
Airport Facilities Improvement Corp.,
Series A, AMT, FGIC, 5.50%,
11/1/08 3,560 3,610
Greater Texoma Utility Authority,
City of Sherman Project, FSA, 4.00%,
10/1/08 375 376
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL BONDS, CONTINUED
TEXAS, CONTINUED
Texas Southmost College District,
AMBAC, GO, 4.25%, 2/15/08 $ 115 $ 115
------------
4,101
------------
TOTAL MUNICIPAL BONDS 16,284
------------
COMMERCIAL PAPER (1.6%)
Florida Municipal Power Agency,
2.88%, 2/4/08, (LOC: Wachovia
Bank NA) 1,000 1,000
Michigan State Building Authority,
3.48%, 2/21/08, (LOC: Bank of New
York (60%), State Street Bank &
Trust Co. (40%)) (a) 5,000 5,000
------------
TOTAL COMMERCIAL PAPER 6,000
------------
MUNICIPAL DEMAND NOTES (a) (e) (85.1%)
ALABAMA (2.1%)
Stevenson Industrial Development
Board Environmental Improvement, Mead
Corp. Project, AMT, 2.28%, 2/6/08,
(LOC: JP Morgan Chase Bank) 700 700
Stevenson Industrial Development
Board Environmental Improvement, Mead
Corp. Project, Series A, AMT, 2.28%,
2/6/08, (LOC: JP Morgan Chase Bank) 6,900 6,900
------------
7,600
------------
ARIZONA (0.8%)
Pima County Industrial Development
Authority, Multi-Family Housing,
Eastside Apartments, AMT, 2.28%,
2/7/08, (LOC: FNMA) 3,000 3,000
------------
ARKANSAS (0.5%)
City of Sheridan, H.H. Robertson Co.
Project, 2.17%, 2/7/08, (LOC: PNC Bank
NA) (b) 2,000 2,000
------------
CALIFORNIA (1.5%)
City of Los Angeles, Multi-Family
Housing Project, Series A, AMT,
2.75%, 2/1/08, (LOC: Citibank NA) 5,400 5,400
------------
COLORADO (4.0%)
Aurora Centretech Metropolitan
District, Series A, GO, 2.30%,
2/7/08, (LOC: BNP Paribas),
(Mandatory Put 12/1/07 @ 100) 1,000 1,000
Boulder Housing Authority, Broadway
East Apartments Project, AMT, 2.30%,
2/7/08, (LOC: U.S. Bank NA) 1,875 1,875
Central Platte Valley Metropolitan
District, Series B, GO, 3.50%,
12/1/08, (LOC: BNP Paribas),
(Mandatory Put 12/1/08 @ 100) 2,000 2,000
Continued
24
MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
COLORADO, CONTINUED
City of Colorado Springs, Catalono
Family LLC Project, AMT, 2.65%,
2/7/08, (LOC: JP Morgan Chase
Bank) (b) $ 585 $ 585
City of Colorado Springs, National
Strength and Condition, 2.30%,
2/7/08, (LOC: Wells Fargo Bank NA) 635 635
Commerce City Northern Infrastructure
General Improvement District, GO,
2.32%, 2/7/08, (LOC: U.S. Bank NA) 1,500 1,500
Durango Community Health and Human
Services, 2.30%, 2/7/08, (LOC: Wells
Fargo Bank NA), (Callable
2/1/08 @ 100) 515 515
Educational & Cultural Facilities
Authority, Akiba Academy of Dallas,
Series A4, 1.90%, 2/1/08,
(LOC: Bank of America NA) 370 370
Housing and Finance Authority, High
Desert Properties Project, Series A,
AMT, 2.30%, 2/7/08, (LOC: Wells Fargo
Bank NA) 2,240 2,240
Housing and Finance Authority, Ready
Foods, Inc. Project, Series A, AMT,
2.30%, 2/7/08, (LOC: U.S. Bank NA) 2,000 2,000
Parker Automotive Metropolitan
District, GO, 3.50%, 12/1/08, (LOC:
U.S. Bank NA), (Mandatory Put
12/1/08 @ 100) 2,000 2,000
------------
14,720
------------
DELAWARE (1.9%)
Sussex County Development, Perdue
Farms, Inc. Project, AMT, 2.24%,
2/7/08, (LOC: Rabobank Nederland) 7,000 7,000
------------
FLORIDA (4.9%)
Collier County Housing Finance
Authority, Multi-Family Housing, AMT,
2.30%, 2/6/08, (LOC: PNC Bank NA) 1,300 1,300
Hillsborough County Housing Finance
Authority Multi-Family Housing, AMT,
2.30%, 2/6/08, (LOC: Citibank NA) 1,340 1,340
Ocean Highway and Port Authority,
AMT, 2.32%, 2/6/08, (LOC: Wachovia
Bank NA) 1,615 1,615
Orange County Industrial Development
Authority, Goodwill Industries, Inc.
Project, 2.12%, 2/6/08, (LOC: Suntrust
Bank) (b) 2,100 2,100
Palm Beach County Housing Finance
Authority, Multi-Family Housing, AMT,
FHLMC, 2.50%, 2/6/08 (b) 3,825 3,825
Palm Beach County, Galaxy Aviation
Airport Project, AMT, 2.22%, 2/6/08,
(LOC: Citibank NA) 7,700 7,700
------------
17,880
------------
Continued
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
GEORGIA (0.7%)
Emanuel County Development Authority,
Jabo Metal Fabrication Project, AMT,
2.24%, 2/6/08, (LOC: SunTrust
Bank) $ 1,250 $ 1,250
Kennesaw Development Authority,
Multi-Family Housing, Walton Ridenour
Apartments, AMT, 2.18%, 2/6/08,
(LOC: SunTrust Bank) 1,500 1,500
------------
2,750
------------
IDAHO (0.2%)
Hailey Industrial Development Corp.,
Rocky Mountain Hardware Project, AMT,
2.40%, 2/7/08, (LOC: Wells Fargo Bank
NA) (b) 915 915
------------
ILLINOIS (9.7%)
Chicago O'Hare International Airport,
Compagnie National Air France, AMT,
2.23%, 2/6/08, (LOC: Societe
Generale) 3,000 3,000
City of Chicago Solid Waste Disposal,
Groot Industries, Inc. Project, AMT,
2.36%, 2/7/08, (LOC: JP Morgan
Chase Bank) (b) 1,800 1,800
City of Crystal Lake Development,
Millennium Electronics Project, AMT,
2.35%, 2/7/08, (LOC: U.S. Bank NA) 1,470 1,470
City of Peoria, Peoria Academy, Inc.
Project, 2.45%, 2/7/08, (LOC: JP
Morgan Chase Bank) (b) 4,100 4,100
City of Savanna, Metform Corp.,
Series A, AMT, 2.32%, 2/6/08,
(LOC: JP Morgan Chase Bank) 1,000 1,000
County of Lake, Northpoint Associates
LLC Project, AMT, 2.32%, 2/6/08,
(LOC: Northern Trust Co.) 1,200 1,200
Finance Authority, Diamond-Star
Motors Corp. Project, 1.93%, 2/1/08,
(LOC: KeyBank NA) (b) 900 900
Finance Authority, Quality Metal
Finishing Co., AMT, 2.25%, 2/7/08,
(LOC: Bank of America NA) 1,300 1,300
Finance Authority, Reliable Materials
Project, AMT, 2.31%, 2/6/08,
(LOC: M&I Bank) 3,700 3,700
Finance Authority, Stromberg Allen &
Co. Project, AMT, 2.23%, 2/7/08,
(LOC: Bank of America NA) 6,000 6,000
Finance Authority, Transparent
Container Project, AMT, 2.30%,
2/7/08, (LOC: JP Morgan Chase Bank) 1,500 1,500
Finance Authority, Waste Management
Project, AMT, 2.25%, 2/7/08,
(LOC: Wachovia Bank NA) 1,900 1,900
Lake Villa Allendale Association
Project, 2.26%, 2/7/08, (LOC: Bank
of America NA) (b) 4,225 4,225
Continued
25
MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
MUNICIPAL DEMAND NOTES, CONTINUED
ILLINOIS, CONTINUED
West Chicago Industrial, Bison Gear
and Engineering, AMT, 2.25%, 2/7/08,
(LOC: JP Morgan Chase Bank) (b) $ 1,534 $ 1,534
Wheeling Industrial, Circuit Service,
Inc. Project, AMT, 2.50%, 2/7/08,
(LOC: JP Morgan Chase Bank) (b) 1,000 1,000
Woodridge Development, Home Run Inn
Frozen Foods, AMT, 2.45%, 2/7/08,
(LOC: JP Morgan Chase Bank) 1,000 1,000
------------
35,629
------------
INDIANA (3.3%)
County of St Joseph Family and
Children's Center Project, 2.30%,
2/7/08, (LOC: Wells Fargo Bank NA) 2,000 2,000
Dekko Foundation Educational
Facilities Tax Exempt Income Trust,
Series 1, 2.45%, 2/7/08, (LOC: JP
Morgan Chase Bank) (b) 750 750
Development Finance Authority,
Regional Council of Carpenters,
2.36%, 2/7/08, (LOC: National City
Bank IN) (b) 1,135 1,135
Development Finance Authority, South
Central Mental Health, 2.30%, 2/7/08,
(LOC: Wells Fargo Bank NA) (b) 3,000 3,000
Gary Chicago International Airport
Authority, AMT, 2.25%, 2/7/08,
(LOC: U.S. Bank NA) 4,100 4,100
Indiana Development Finance
Authority, AMT, 2.50%, 2/7/08,
(LOC: JP Morgan Chase Bank) 1,300 1,300
------------
12,285
------------
IOWA (0.8%)
Scott County Industrial, M.A. Ford
Manufacturing Co., Inc. Project, AMT,
2.30%, 2/7/08, (LOC: Wells Fargo
Bank NA) 2,970 2,970
------------
KENTUCKY (1.7%)
Economic Development Finance
Authority, Republic Services, Inc.
Project, AMT, 2.27%, 2/7/08,
(LOC: Bank of America NA) 3,000 3,000
Economic Development Finance
Authority, Republic Services, Inc.
Project, AMT, 2.27%, 2/7/08,
(LOC: JP Morgan Chase Bank) 3,075 3,075
------------
6,075
------------
MAINE (0.2%)
Finance Authority of Maine, William
Arthur, Inc., AMT, 2.50%, 2/6/08,
(LOC: JP Morgan Chase Bank) (b) 800 800
------------
MICHIGAN (0.6%)
State Hospital Finance Authority,
Crittenton Hospital, Series A, 2.17%,
2/1/08, (LOC: Comerica Bank) 500 500
Strategic Fund, Henry Ford Museum
Village Project, 2.00%, 2/1/08,
(LOC: Comerica Bank) 1,650 1,650
------------
2,150
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL DEMAND NOTES, CONTINUED
MINNESOTA (3.0%)
City of Blue Earth Development,
Nortech Systems, Inc. Project, AMT,
2.40%, 2/7/08, (LOC: Wells Fargo Bank
NA) $ 1,310 $ 1,310
City of Minneapolis, Minnehaha
Academy Project, 2.10%, 2/1/08,
(LOC: U.S. Bank NA) 3,500 3,500
Higher Education Facilities
Authority, Saint Olaf College, Series
H, 2.00%, 2/1/08, (LOC: Harris Trust &
Savings Bank) 1,000 1,000
Lauderdale, Children's Home Society
Project, 2.10%, 2/1/08, (LOC: U.S.
Bank NA) 190 190
Little Canada, Wellington III
Project, AMT, 2.44%, 2/7/08,
(LOC: U.S. Bank NA) (b) 420 420
Roseville Health Care Facilities,
Presbyterian Homes Project, 2.05%,
2/1/08, (LOC: U.S. Bank NA) 2,525 2,525
Saint Paul Housing and Redevelopment
Authority, Kendrick Apartments
Project, AMT, 2.39%, 2/6/08,
(LOC: U.S. Bank NA) 975 975
Saint Paul Port Authority, AMT,
2.30%, 2/7/08, (LOC: Wells Fargo
Bank NA) 990 990
------------
10,910
------------
MISSISSIPPI (0.8%)
Business Finance Corp., Calgon Carbon
Corp. Project, AMT, 2.26%, 2/7/08,
(LOC: JP Morgan Chase Bank) (b) 2,925 2,925
------------
MISSOURI (1.2%)
Missouri State Development Finance
Board, St Louis Air Cargo Services,
AMT, 2.24%, 2/7/08, (LOC: JP Morgan
Chase Bank) 2,000 2,000
State Health and Educational
Facilities Authority, Drury College,
2.05%, 2/1/08, (LOC: Bank of
America NA) 965 965
State Health and Educational
Facilities Authority, Drury
University, 2.05%, 2/1/08,
(LOC: Bank of America NA) 1,485 1,485
------------
4,450
------------
MONTANA (0.3%)
Cascade County, Montana Milling, Inc.
Project, AMT, 2.40%, 2/7/08,
(LOC: Wells Fargo Bank NA) 1,100 1,100
------------
NEVADA (0.3%)
Housing Division, Multi-Family
Housing, Golden Apartments, AMT,
2.25%, 2/7/08, (LOC: Freddie Mac) 1,200 1,200
------------
NEW MEXICO (0.9%)
Bernalillo County Multifamily Housing
Project, AMT, 2.84%, 2/7/08,
(LOC: U.S. Bank NA) 3,200 3,200
------------
Continued
26
MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL DEMAND NOTES, CONTINUED
NORTH CAROLINA (5.2%)
Capital Facilities Finance Agency,
Duke Energy Carolinas Project, AMT,
2.18%, 2/7/08, (LOC: Wachovia
Bank NA) $ 4,500 $ 4,500
Capital Facilities Finance Agency,
Duke Energy Carolinas Project, AMT,
2.25%, 2/7/08, (LOC: Wachovia
Bank NA) 4,000 4,000
Capital Facilities Finance Agency,
Republic Services, Inc., AMT, 1.85%,
2/1/08, (LOC: SunTrust Bank) 1,000 1,000
Halifax County Industrial Facilities
& Pollution Control Financing
Authority, AMT, 1.98%, 2/1/08,
(LOC: Dexia Credit Local) 8,000 8,000
Johnston County Industrial Facilities
& Pollution Control Financing
Authority, AMT, 2.40%, 2/7/08,
(LOC: Wells Fargo Bank NA) 1,075 1,075
Montgomery County Industrial
Facilities & Pollution Control
Financing Authority, AMT, 1.85%,
2/1/08, (LOC: SunTrust Bank) 700 700
------------
19,275
------------
NORTH DAKOTA (0.1%)
Hebron Industrial, Dacco, Inc.
Project, AMT, 2.34%, 2/7/08,
(LOC: U.S. Bank NA) (b) 520 520
------------
OHIO (2.0%)
Air Quality Development Authority,
Pollution Control, AMT, 2.05%,
2/1/08, (LOC: Wachovia Bank NA) 2,885 2,885
Cleveland-Cuyahoga County Port
Authority, AMT, 2.31%, 2/7/08,
(LOC: Charter One Bank NA) 1,725 1,725
Columbiana County, East Liverpool
Area Y Project, 2.31%, 2/7/08,
(LOC: National City Bank) 680 680
County of Coshocton Hospital
Facilities, Echoing Hills Village,
Inc. Project, 2.45%, 2/7/08,
(LOC: JP Morgan Chase Bank) (b) 165 165
County of Montgomery Health Care,
Community Blood Center Project,
2.45%, 2/7/08, (LOC: JP Morgan
Chase Bank) 1,370 1,370
Summit County Industrial, SSP
Fittings Corp. Project, 2.60%,
2/7/08, (LOC: JP Morgan Chase
Bank) 615 615
------------
7,440
------------
OKLAHOMA (0.6%)
Oklahoma Industries Authority, Casady
School Project, 2.45%, 2/7/08,
(LOC: JP Morgan Chase Bank) 2,065 2,065
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL DEMAND NOTES, CONTINUED
OREGON (4.2%)
Port of Portland, Portland Bulk
Terminal, AMT, 2.20%, 2/1/08,
(LOC: Canadian Imperial Bank) $ 2,000 $ 2,000
State of Oregon Economic Development,
McFarland Cascade, Series 175, AMT,
2.34%, 2/7/08, (LOC: U.S. Bank NA) (b) 500 500
State of Oregon, Newsprint Project,
Series 197, AMT, 1.85%, 2/1/08,
(LOC: Toronto - Dominion Bank) 3,070 3,070
State of Oregon, Newsprint Project,
Series 203, AMT, 1.85%, 2/1/08,
(LOC: Toronto - Dominion Bank) 10,000 10,000
------------
15,570
------------
PENNSYLVANIA (2.2%)
Allegheny County Hospital Development
Authority, Jefferson Regional, Series
A, 3.70%, 5/1/08, (LOC: PNC Bank NA),
(Mandatory Put 5/1/08 @ 100) 2,500 2,500
Allegheny County Industrial
Development Authority, Sacred Heart
High School, 2.22%, 2/7/08,
(LOC: PNC Bank NA) 1,200 1,200
Allegheny County Industrial
Development Authority, Sewickley
Academy, 2.20%, 2/7/08, (LOC: PNC
Bank NA) 900 900
Berks County Industrial Development
Authority, Manufacturing Facilities,
Ram Industries, Inc. Project, AMT,
2.30%, 2/6/08, (LOC: PNC Bank NA) 960 960
Higher Educational Facilities
Authority, Associated Independent
Colleges & Universities, Series G3,
3.38%, 11/1/08, (LOC: PNC Bank
NA), (Mandatory Put 11/1/08 @ 100) 1,200 1,200
Westmoreland County Industrial
Development Authority, Greensburg
Thermal, 2.17%, 2/7/08, (LOC: PNC
Bank NA) 1,425 1,425
------------
8,185
------------
RHODE ISLAND (2.3%)
Warwick Housing Authority, Trafalgar
East Apartments Project, AMT, 1.98%,
2/1/08, (LOC: Bank of America NA) (b) 8,330 8,330
------------
SOUTH CAROLINA (0.4%)
South Carolina Jobs-Economic
Development Authority, AMT, 2.26%,
2/7/08, (LOC: PNC Bank NA) 1,330 1,330
------------
TENNESSEE (7.2%)
Covington Industrial Development
Board, Charms Co. Project, AMT,
2.32%, 2/6/08, (LOC: Bank of
America NA) 5,000 5,000
Greeneville Industrial Development
Board, Pet, Inc. Project, 2.17%,
2/7/08, (LOC: BNP Paribas) (b) 500 500
Continued
MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL DEMAND NOTES, CONTINUED
TENNESSEE, CONTINUED
Jackson Industrial Development Board,
AMT, 2.26%, 2/7/08, (LOC: JP Morgan
Chase Bank) $ 8,000 $ 8,000
Lewisburg Industrial Development
Board, Waste Management, Inc.
Project, AMT, 2.22%, 2/7/08,
(LOC: Wachovia Bank NA) 3,000 3,000
Shelby County Health Educational &
Housing Facilities Board, Courtyard
Apartments Project, Series A, AMT,
2.26%, 2/7/08, (LOC: National City
Bank) (b) 5,000 5,000
Sullivan County Industrial
Development Board, Microporous
Products LP, AMT, 2.30%, 2/7/08,
(LOC: Bank of New York) (b) 4,800 4,800
------------
26,300
------------
TEXAS (2.5%)
Beaumont Independent School District,
GO, PSF, 4.00%, 2/1/08, (LOC: BNP
Paribas), (Mandatory Put
8/15/08 @ 100) 2,000 2,007
Brazos River Authority, AMT, 2.38%,
2/6/08, (LOC: Citibank NA) 1,010 1,010
Colorado River Municipal Water District,
Republic Services, Inc., AMT, 2.28%,
2/7/08, (LOC: Bank of America NA) 4,000 4,000
Waco Industrial Development Corp.,
Patriot Homes of Texas Project, AMT,
2.74%, 2/6/08, (LOC: Wells Fargo
Bank NA) 2,000 2,000
------------
9,017
------------
UTAH (0.9%)
County of Salt Lake, Community
Foundation Disabled Project, 2.30%,
2/7/08, (LOC: Wells Fargo Bank NA) 1,515 1,515
Housing Corp., Multi-Family Housing,
Pointe Apartments Project, AMT,
2.28%, 2/7/08, (LOC: U.S. Bank NA) 1,100 1,100
West Valley City, Johnson Matthey,
Inc. Project, 1.93%, 2/1/08,
(LOC: HSBC Bank USA NA) (b) 700 700
------------
3,315
------------
VIRGINIA (2.1%)
Brunswick County Industrial
Development Authority, Aegis Waste
Solutions, Inc., AMT, 2.50%, 2/7/08,
(LOC: Credit Suisse First Boston) 1,000 1,000
King George County Industrial
Development Authority, Birchwood
Power Partners, AMT, 1.93%, 2/1/08,
(LOC: Bank of Nova Scotia) 5,410 5,410
Suffolk Redevelopment and Housing
Authority, North Beach Apartments,
2.22%, 2/7/08,
(LOC: SunTrust Bank) (b) 1,200 1,200
------------
7,610
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL DEMAND NOTES, CONTINUED
WASHINGTON (5.2%)
Economic Development Finance
Authority, B & H Dental Laboratory
Project, AMT, 2.20%, 2/7/08,
(LOC: U.S. Bank NA) $ 1,855 $ 1,855
Economic Development Finance
Authority, Novelty Hill Properties
LLC, AMT, 2.58%, 2/7/08, (LOC: U.S.
Bank NA) 3,210 3,210
Health Care Facilities Authority,
Swedish Health Services, 2.23%,
2/6/08, (LOC: Citibank NA) (b) 4,000 4,000
Kitsap County Industrial Development
Corp., Cara Land Co. LLC Project,
AMT, 2.30%, 2/7/08, (LOC: Wells Fargo
Bank NA) 2,500 2,500
Pierce County Economic Development
Corp., Quality Stamping Project, AMT,
2.30%, 2/7/08, (LOC: Wells Fargo Bank
NA) 2,225 2,225
Seattle Housing Authority, High Point
Project, AMT, 2.31%, 2/7/08,
(LOC: KeyBank NA) 1,500 1,500
Seattle Housing Authority, Rainier
Vista Project, AMT, 2.58%, 2/7/08,
(LOC: KeyBank NA) 100 100
State Housing Finance Commission,
Clark Island Portfolio, AMT, FSA,
2.31%, 2/7/08, (LOC: Freddie Mac) 3,560 3,560
------------
18,950
------------
WISCONSIN (6.5%)
Baraboo Wisconsin Industrial
Development Revenue, AMT, 2.30%,
2/7/08, (LOC: M&I Marshall & Isley) 10,000 10,000
City of Whitehall, Industrial
Development Revenue, AMT, 2.30%,
2/7/08, (LOC: JP Morgan
Chase Bank) 2,000 2,000
Farmington Industrial Development
Revenue, Swiss Valley Farms Corp.,
AMT, 2.30%, 2/7/08, (LOC: Wells Fargo
Bank NA) (b) 500 500
Kiel Industries, Polar Ware Company
Project, AMT, 2.35%, 2/7/08,
(LOC: U.S. Bank NA) 1,325 1,325
Manitowoc Development, Cher-Make
Sausage Co. Project, AMT, 2.35%,
2/7/08, (LOC: U.S. Bank NA) 2,190 2,190
Oconomowoc Community Development
Authority, AMT, 2.22%, 2/7/08,
(LOC: Bank of America NA) 1,200 1,200
Onalaska Industrial, Empire Screen
Printing Project, AMT, 2.35%, 2/7/08,
(LOC: U.S. Bank NA) 945 945
Red Cedar, Fairmount Minerals Ltd.,
AMT, 2.31%, 2/7/08, (LOC: National
City Bank) 4,000 4,000
West Bend Industrial, Jackson
Concrete, Inc. Project, AMT, 2.35%,
2/7/08, (LOC: U.S. Bank NA) 1,750 1,750
------------
23,910
------------
Continued
28
MUNICIPAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARES)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ ------------
MUNICIPAL DEMAND NOTES, CONTINUED
WYOMING (4.3%)
County of Sweetwater, Environment,
Pacificorp Project, AMT, 2.00%,
2/1/08, (LOC: Barclays Bank PLC) $ 15,800 $ 15,800
------------
TOTAL MUNICIPAL DEMAND NOTES 312,576
------------
SHARES
------------
MONEY MARKETS (c) (7.2%)
AIM TFIT Tax-Free Cash Reserve
Portfolio, Class C 1,383 1
Dreyfus Tax Exempt Cash
Management 26,477,788 26,478
Goldman Sachs Financial Square
Tax-Free Money Market Fund 43,658 44
------------
TOTAL MONEY MARKETS 26,523
------------
TOTAL INVESTMENTS (COST $361,383)+ - 98.3% 361,383
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.7% 6,114
------------
NET ASSETS - 100.0% $ 367,497
============
NOTES TO SCHEDULE OF INVESTMENTS
+ Also represents cost for federal income tax purposes.
(a) Variable rate security. Rate presented represents rate in effect at January
31, 2008.
(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) All or part of this security has been deposited as collateral for when
issued or delayed delivery transactions.
(e) Maturity date is next rate reset date.
Continued
The following abbreviations are used in the Schedule of Investments:
AMT - Alternative Minimum Tax Paper
AMBAC - American Municipal Bond Assurance Corp.
CR - Custodian Receipt
ETM - Escrowed to Maturity
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
MBIA - Municipal Bond Investors Assurance
PSF - Public School Fund
W/I - When Issued
INVESTMENT CONCENTRATION AS A PERCENTAGE OF NET ASSETS, BY INDUSTRY:
Airport 7.0%
Cash & Cash Equivalents 7.2%
Development 6.1%
Education 4.6%
Facilities 3.1%
General 0.7%
General Obligation 1.5%
Higher Education 1.3%
Home Furnishings --^
Housing 9.1%
Industrials 26.9%
Medical 3.7%
Miscellaneous 2.1%
Multifamily Housing 2.6%
Pollution 1.9%
Regional Authority 1.6%
Resource Recovery 17.3%
Revenue Bonds 1.2%
Transportation 0.3%
Utilities 0.1%
^ Amount is less than 0.05%.
See notes to financial statements.
29
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL
Assets: MONEY MARKET MONEY MARKET
------------ -------------
Investments, at amortized cost and value $1,362,247 $2,782,848
Repurchase agreement, at cost and value 111,106 355,013
---------- ----------
Total Investments 1,473,353 3,137,861
Cash --^ 1
Interest Receivable 5,929 10,014
Receivable for investments sold -- 7,225
Receivable for Fund shares sold 161 21
Prepaid expenses and other assets 259 79
---------- ----------
Total Assets 1,479,702 3,155,201
---------- ----------
Liabilities:
Distributions payable 2,181 5,518
Payable for investments purchased 5,864 40,142
Payable for Fund shares redeemed 138 348
Accrued expenses and other payables:
Payable to Advisor and affiliates 579 366
Distribution and administrative servicing fee 144 83
Other 56 48
---------- ----------
Total Liabilities 8,962 46,505
---------- ----------
Net Assets:
Paid-in Capital $1,470,747 $3,108,648
Accumulated net investment income (loss) 82 49
Accumulated net realized gain (loss) from investment transactions (89) (1)
---------- ----------
Net Assets $1,470,740 $3,108,696
========== ==========
Net Assets:
Institutional Shares $ 778,237 $2,607,650
Class A Shares 689,323 NA
Class B Shares 2,074 NA
Class C Shares 1,106 NA
Select Shares NA 72,971
Preferred Shares NA 135,944
Trust Shares NA 292,131
---------- ----------
Total $1,470,740 $3,108,696
========== ==========
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value):
Institutional Shares 778,337 2,607,626
Class A Shares 689,396 NA
Class B Shares 2,076 NA
Class C Shares 1,106 NA
Select Shares NA 72,968
Preferred Shares NA 135,936
Trust Shares NA 292,120
---------- ----------
Total 1,470,915 3,108,650
========== ==========
Net Asset Value
Offering and redemption price per share - Institutional Shares, Class A Shares,
Class B Shares, Class C Shares,
Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00
========== ==========
INSTITUTIONAL
GOVERNMENT MONEY U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
Assets: MARKET MONEY MARKET MONEY MARKET MONEY MARKET
---------------- ------------- ------------------ ------------
Investments, at amortized cost and value $ 854,640 $ 296,318 $270,506 $361,383
Repurchase agreement, at cost and value 322,257 1,073,067 -- --
---------- ---------- -------- --------
Total Investments 1,176,897 1,369,385 270,506 361,383
Cash 1 --^ 1 --
Interest Receivable 5,539 1,922 1,034 1,153
Receivable for investments sold -- -- -- 6,487
Receivable for Fund shares sold 1 89 -- --
Prepaid expenses and other assets 40 13 5 25
---------- ---------- -------- --------
Total Assets 1,182,478 1,371,409 271,546 369,048
---------- ---------- -------- --------
Liabilities:
Distributions payable 2,398 3,651 357 753
Payable for investments purchased -- -- -- 691
Payable for Fund shares redeemed -- 724 -- --
Accrued expenses and other payables:
Payable to Advisor and affiliates 126 170 87 33
Distribution and administrative servicing fee 65 94 2 24
Other 61 181 37 50
---------- ---------- -------- --------
Total Liabilities 2,650 4,820 483 1,551
---------- ---------- -------- --------
Net Assets:
Paid-in Capital $1,179,810 $1,366,701 $271,071 $367,495
Accumulated net investment income (loss) 11 9 (8) (1)
Accumulated net realized gain (loss) from
investment transactions 7 (121) -- 3
---------- ---------- -------- --------
Net Assets $1,179,828 $1,366,589 $271,063 $367,497
========== ========== ======== ========
Net Assets:
Institutional Shares $ 722,153 $ 789,740 $256,505 $243,360
Class A Shares NA NA -- --
Class B Shares NA NA 14,558 46,949
Class C Shares NA NA NA NA
Select Shares 30,275 16,306 NA 17,656
Preferred Shares 272,571 436,811 NA 24,922
Trust Shares 154,829 123,732 NA 34,610
---------- ---------- -------- --------
Total $1,179,828 $1,366,589 $271,063 $367,497
========== ========== ======== ========
Shares of beneficial interest outstanding
(unlimited number of shares
authorized, no par value):
Institutional Shares 722,146 789,662 256,464 243,351
Class A Shares NA NA 14,557 46,960
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Select Shares 30,274 16,301 NA 17,656
Preferred Shares 272,567 436,773 NA 24,922
Trust Shares 154,826 123,726 NA 34,609
---------- ---------- -------- --------
Total 1,179,813 1,366,462 271,021 367,498
========== ========== ======== ========
Net Asset Value
Offering and redemption price per share -
Institutional Shares, Class A Shares,
Class B Shares, Class C Shares,
Select Shares, Preferred Shares and
Trust Shares (a) $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ======== ========
(a) Redemption price per share for Class B Shares and Class C Shares varies by
length of time shares are held.
^ Amount is less than five hundred dollars.
See notes to financial statements.
30-31 spread
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2008 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL
MONEY MARKET MONEY MARKET
-------------- ---------------
Investment Income:
Interest income $34,017 $64,071
Dividend income -- 7
------- -------
Total Income 34,017 64,078
------- -------
Expenses:
Investment advisory fees 2,661 5,056
Administration fees 1,152 2,189
Distribution servicing fees - Class A 775 NA
Distribution servicing fees - Class B 8 NA
Distribution servicing fees - Class C 4 NA
Distribution servicing fees - Advisor Shares 1 NA
Administrative servicing fees - Class C 1 NA
Administrative servicing fees - Select Shares NA 30
Administrative servicing fees - Preferred Shares NA 99
Administrative servicing fees - Trust Shares NA 335
Accounting Fees 124 179
Registration and filing fees 26 18
Transfer and dividend disbursing agent fees 182 306
Custody fees 6 32
Trustees' fees and expenses 33 62
Other expenses 119 141
------- -------
Total expenses 5,092 8,447
------- -------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (711) (5,328)
Distribution services - Class A Shares waived -- --
------- -------
Net Expenses 4,381 3,119
------- -------
Net Investment Income 29,636 60,959
------- -------
Net realized gains on investments --^ --^
------- -------
Change in net assets resulting from operations $29,636 $60,959
======= =======
INSTITUTIONAL
GOVERNMENT MONEY U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL
MARKET MONEY MARKET MONEY MARKET MONEY MARKET
---------------- -------------- -------------- ------------
Investment Income:
Interest income $25,510 $26,882 $3,851 $6,499
Dividend income -- 56 --^ --^
------- ------- ------ ------
Total Income 25,510 26,938 3,851 6,499
------- ------- ------ ------
Expenses:
Investment advisory fees 2,102 2,523 433 920
Administration fees 910 1,092 187 319
Distribution servicing fees - Class A NA NA 18 56
Distribution servicing fees - Class B NA NA NA NA
Distribution servicing fees - Class C NA NA NA NA
Distribution servicing fees - Advisor Shares NA NA NA NA
Administrative servicing fees - Class C NA NA NA NA
Administrative servicing fees - Select Shares 7 31 NA 7
Administrative servicing fees - Preferred Shares 181 395 NA 12
Administrative servicing fees - Trust Shares 170 117 NA 48
Accounting Fees 104 114 26 55
Registration and filing fees 15 15 2 15
Transfer and dividend disbursing agent fees 139 162 30 52
Custody fees 17 22 2 --
Trustees' fees and expenses 27 31 6 9
Other expenses 60 123 35 55
------- ------- ------ ------
Total expenses 3,732 4,625 739 1,548
------- ------- ------ ------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (2,270) (2,758) (136) (1,038)
Distribution services - Class A Shares waived -- -- (7) --
------- ------- ------ ------
Net Expenses 1,462 1,867 596 510
------- ------- ------ ------
Net Investment Income 24,048 25,071 3,255 5,989
------- ------- ------ ------
Net realized gains on investments 7 -- -- --
------- -------- ------ ------
Change in net assets resulting from operations $24,055 $25,071 $3,255 $5,989
======= ======= ====== ======
- -------------------------
^ Amount is less than five hundred dollars.
See notes to financial statements.
32-33 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL
MONEY MARKET MONEY MARKET
----------------------- -----------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2008(a) 2007 2008(a) 2007
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 29,636 $ 54,638 $ 60,959 $ 93,464
Net realized gains from
investment transactions --^ --^ --^ --^
Increase from payment by the Advisor -- 479 -- --
---------- ---------- ---------- ----------
Change in net assets resulting from operations 29,636 55,117 60,959 93,464
---------- ---------- ---------- ----------
Distributions to shareholders from net investment income:
Institutional Shares (16,389) (28,254) (49,871) (75,047)
Class A Shares (13,673) (26,216) NA NA
Class B Shares (30) (46) NA NA
Class C Shares (20) (46) NA NA
Advisor Shares (3) (77) NA NA
Select Shares NA NA (1,779) (2,361)
Preferred Shares NA NA (3,118) (5,814)
Trust Shares NA NA (6,192) (10,222)
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (30,115) (54,639) (60,960) (93,444)
---------- ---------- ---------- ----------
Change in net assets from Fund
share transactions 237,099 211,185 1,042,868 507,576
---------- ---------- ---------- ----------
Change in net assets 236,620 211,663 1,042,867 507,596
Net Assets:
Beginning of period 1,234,120 1,022,457 2,065,829 1,558,233
---------- ---------- ---------- ----------
End of period $1,470,740 $1,234,120 $3,108,696 $2,065,829
========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ 82 $ 564 $ 49 $ 50
========== ========== ========== ==========
INSTITUTIONAL GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
---------------------- ----------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2008(a) 2007 2008(a) 2007
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 24,048 $ 36,305 $ 25,071 $ 55,947
Net realized gains from
investment transactions 7 --^ -- 20
Increase from payment by the Advisor -- -- -- 665
---------- ---------- ---------- ----------
Change in net assets resulting from operations 24,055 36,305 25,071 56,632
---------- ---------- ---------- ----------
Distributions to shareholders from net investment income:
Institutional Shares (15,235) (18,791) (11,598) (21,023)
Class A Shares NA NA NA NA
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares (406) (728) (1,643) (3,333)
Preferred Shares (5,423) (11,433) (10,683) (27,813)
Trust Shares (2,984) (5,350) (1,812) (3,770)
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (24,048) (36,302) (25,736) (55,939)
---------- ---------- ---------- ----------
Change in net assets from Fund
share transactions 324,958 257,928 335,668 (156,176)
---------- ---------- ---------- ----------
Change in net assets 324,965 257,931 335,003 (155,483)
Net Assets:
Beginning of period 854,863 596,932 1,031,586 1,187,069
---------- ---------- ---------- ----------
End of period $1,179,828 $ 854,863 $1,366,589 $1,031,586
========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ 11 $ 11 $ 9 $ 674
========== ========== ========== ==========
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
----------------------- -----------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2008(a) 2007 2008(a) 2007
---------- ---------- ---------- ----------
Change in Net Assets:
Operations:
Net investment income $ 3,255 $ 6,206 $ 5,989 $ 10,039
Net realized gains from
investment transactions -- -- -- 6
Increase from payment by the Advisor -- -- -- 81
---------- ---------- ---------- ----------
Change in net assets resulting from operations 3,255 6,206 5,989 10,126
---------- ---------- ---------- ----------
Distributions to shareholders from net investment income:
Institutional Shares (3,044) (6,030) (4,246) (7,506)
Class A Shares (211) (175) (695) (1,008)
Class B Shares NA NA NA NA
Class C Shares NA NA NA NA
Advisor Shares NA NA NA NA
Select Shares NA NA (281) (347)
Preferred Shares NA NA (245) (64)
Trust Shares NA NA (603) (1,115)
---------- ---------- ---------- ----------
Change in net assets from
shareholder distributions (3,255) (6,205) (6,070) (10,040)
---------- ---------- ---------- ----------
Change in net assets from Fund
share transactions 60,383 19,298 55,042 31,447
---------- ---------- ---------- ----------
Change in net assets 60,383 19,299 54,961 31,533
Net Assets:
Beginning of period 210,680 191,381 312,536 281,003
---------- ---------- ---------- ----------
End of period $ 271,063 $ 210,680 $ 367,497 $ 312,536
========== ========== ========== ==========
Accumulated Net Investment Income/(Loss) $ (8) $ (8) $ (1) $ 80
========== ========== ========== ==========
- -------------------------
(a) Unaudited
^ Amount is less than five hundred dollars.
See notes to financial statements.
34-35 spread
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
PRIME INSTITUTIONAL
MONEY MARKET MONEY MARKET
--------------------- -----------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2008(a) 2007 2008(a) 2007
-------- ---------- ---------- ----------
Share Transactions:*
Institutional Shares
Shares issued 752,318 2,013,773 5,315,689 6,970,997
Shares issued in connection with acquisition of
Government Money Market Fund ~ 114,585 -- -- --
Dividends reinvested 2,605 5,181 26,855 34,131
Shares redeemed (697,023) (1,976,758) (4,422,286) (6,581,343)
-------- ---------- ---------- ----------
Total Institutional Shares 172,485 42,196 920,258 423,785
-------- ---------- ---------- ----------
Class A Shares
Shares issued 333,387 713,017 NA NA
Shares issued in connection with acquisition of
Government Money Market Fund ~ 90,754 -- NA NA
Shares issued in conversion from Advisor Class 178 -- NA NA
Dividends reinvested 13,641 24,502 NA NA
Shares redeemed (373,757) (567,575) NA NA
-------- ---------- ---------- ----------
Total Class A Shares 64,203 169,944 NA NA
-------- ---------- ---------- ----------
Class B Shares
Shares issued 1,027 719 NA NA
Dividends reinvested 13 24 NA NA
Shares redeemed (433) (493) NA NA
-------- ---------- ---------- ----------
Total Class B Shares 607 250 NA NA
-------- ---------- ---------- ----------
Class C Shares
Shares issued 118 1,035 NA NA
Dividends reinvested 19 43 NA NA
Shares redeemed (96) (892) NA NA
-------- ---------- ---------- ----------
Total Class C Shares 41 186 NA NA
-------- ---------- ---------- ----------
Advisor Shares
Shares issued 3 3,062 NA NA
Dividends reinvested 3 77 NA NA
Shares redeemed (243) (4,530) NA NA
-------- ---------- ---------- ----------
Total Advisor Shares (237) (1,391) NA NA
-------- ---------- ---------- ----------
Select Shares
Shares issued NA NA 195,321 228,248
Dividends reinvested NA NA 1,284 1,741
Shares redeemed NA NA (183,535) (205,670)
-------- ---------- ---------- ----------
Total Select Shares NA NA 13,070 24,319
-------- ---------- ---------- ----------
Preferred Shares
Shares issued NA NA 1,293,944 523,728
Dividends reinvested NA NA 2,426 5,486
Shares redeemed NA NA (1,248,053) (539,857)
-------- ---------- ---------- ----------
Total Preferred Shares NA NA 48,317 (10,643)
-------- ---------- ---------- ----------
Trust Shares
Shares issued NA NA 296,001 406,473
Dividends reinvested NA NA 740 976
Shares redeemed NA NA (235,518) (337,334)
-------- ---------- ---------- ----------
Total Trust Shares NA NA 61,223 70,115
-------- ---------- ---------- ----------
INSTITUTIONAL GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET
----------------------- -----------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2008(a) 2007 2008(a) 2007
---------- ---------- ---------- ----------
Share Transactions:*
Institutional Shares
Shares issued 2,011,157 2,062,016 905,888 901,052
Shares issued in connection with acquisition of
Government Money Market Fund ~ -- -- -- --
Dividends reinvested 3,658 3,915 1,680 2,671
Shares redeemed (1,779,724) (1,883,205) (537,817) (870,501)
---------- ---------- ---------- ----------
Total Institutional Shares 235,091 182,726 369,751 33,222
---------- ---------- ---------- ----------
Class A Shares
Shares issued NA NA NA NA
Shares issued in connection with acquisition of
Government Money Market Fund ~ NA NA NA NA
Shares issued in conversion from Advisor Class NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
---------- ---------- ---------- ----------
Total Class A Shares NA NA NA NA
---------- ---------- ---------- ----------
Class B Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
---------- ---------- ---------- ----------
Total Class B Shares NA NA NA NA
---------- ---------- ---------- ----------
Class C Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
---------- ---------- ---------- ----------
Total Class C Shares NA NA NA NA
---------- ---------- ---------- ----------
Advisor Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
---------- ---------- ---------- ----------
Total Advisor Shares NA NA NA NA
---------- ---------- ---------- ----------
Select Shares
Shares issued 74,345 34,585 319,485 460,676
Dividends reinvested 202 95 -- --
Shares redeemed (58,255) (27,035) (367,023) (458,826)
---------- ---------- ---------- ----------
Total Select Shares 16,292 7,645 (47,538) 1,850
---------- ---------- ---------- ----------
Preferred Shares
Shares issued 462,647 1,050,752 1,656,035 3,869,085
Dividends reinvested 3,467 6,798 904 4,702
Shares redeemed (418,685) (1,022,671) (1,692,717) (4,026,407)
---------- ---------- ---------- ----------
Total Preferred Shares 47,429 34,879 (35,778) (152,620)
---------- ---------- ---------- ----------
Trust Shares
Shares issued 171,850 200,949 222,434 376,505
Dividends reinvested 290 674 -- --
Shares redeemed (145,994) (168,945) (173,201) (415,133)
---------- ---------- ---------- ----------
Total Trust Shares 26,146 32,678 49,233 (38,628)
---------- ---------- ---------- ----------
MICHIGAN MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
---------------------- ---------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
2008(a) 2007 2008(a) 2007
-------- -------- -------- --------
Share Transactions:*
Institutional Shares
Shares issued 260,875 462,394 328,199 508,704
Shares issued in connection with acquisition of
Government Money Market Fund ~ -- -- -- --
Dividends reinvested 838 1,937 229 760
Shares redeemed (201,179) (458,054) (315,711) (493,820)
-------- -------- -------- --------
Total Institutional Shares 60,534 6,277 12,717 15,644
-------- -------- -------- --------
Class A Shares
Shares issued 11,459 35,068 68,083 141,052
Shares issued in connection with acquisition of
Government Money Market Fund ~ -- -- -- --
Shares issued in conversion from Advisor Class -- -- -- --
Dividends reinvested 211 175 687 940
Shares redeemed (11,821) (22,222) (60,327) (130,513)
-------- -------- -------- --------
Total Class A Shares (151) 13,021 8,443 11,479
-------- -------- -------- --------
Class B Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
-------- -------- -------- --------
Total Class B Shares NA NA NA NA
-------- -------- -------- --------
Class C Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
-------- -------- -------- --------
Total Class C Shares NA NA NA NA
-------- -------- -------- --------
Advisor Shares
Shares issued NA NA NA NA
Dividends reinvested NA NA NA NA
Shares redeemed NA NA NA NA
-------- -------- -------- --------
Total Advisor Shares NA NA NA NA
-------- -------- -------- --------
Select Shares
Shares issued NA NA 45,377 42,758
Dividends reinvested NA NA (1) 5
Shares redeemed NA NA (37,915) (43,119)
-------- -------- -------- --------
Total Select Shares NA NA 7,461 (356)
-------- -------- -------- --------
Preferred Shares
Shares issued NA NA 25,803 3,179
Dividends reinvested NA NA -- 1
Shares redeemed NA NA (2,279) (4,184)
-------- -------- -------- --------
Total Preferred Shares NA NA 23,524 (1,004)
-------- -------- -------- --------
Trust Shares
Shares issued NA NA 85,724 114,876
Dividends reinvested NA NA 49 45
Shares redeemed NA NA (82,876) (109,237)
-------- -------- -------- --------
Total Trust Shares NA NA 2,897 5,684
-------- -------- -------- --------
(a) Unaudited
* Share transactions are at a Net Asset Value of $1.00 per share.
~ Shares merged November 16, 2007. See Note 1.
See notes to financial statements.
36-37 spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET ASSET NET REALIZED LESS
VALUE, NET AND UNREALIZED DISTRIBUTIONS
BEGINNING INVESTMENT GAINS/(LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS A SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
Year ended 7/31/04 $1.00 --^ --^ --^
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS B SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
Year ended 7/31/03 $1.00 --^ --^ --^
- ------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS C SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
Year ended 7/31/03 $1.00 --^ --^ --^
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET SELECT SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 -- (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET PREFERRED SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 -- (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET TRUST SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 -- (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES EXPENSES NET
NET ASSET ASSETS, TO TO INVESTMENT
VALUE, END OF AVERAGE AVERAGE INCOME
END OF TOTAL PERIOD NET NET TO AVERAGE
PERIOD RETURN (000'S) ASSETS (a) ASSETS (b) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 2.37%* $ 778,237 0.65%** 0.54%** 4.57%**
Year ended 7/31/07 $1.00 4.94% $ 605,987 0.66% 0.54% 4.82%
Year ended 7/31/06 $1.00 3.97% $ 563,551 0.66% 0.54% 3.81%
Year ended 7/31/05 $1.00 1.91% $ 958,735 0.65% 0.54% 1.86%
Year ended 7/31/04 $1.00 0.65% $1,064,622 0.66% 0.54% 0.64%
Year ended 7/31/03 $1.00 1.02% $1,565,589 0.65% 0.54% 1.02%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET
CLASS A SHARES
Six months ended 1/31/08 + $1.00 2.25%* $ 689,323 0.90%** 0.79%** 4.33%**
Year ended 7/31/07 $1.00 4.67% $ 625,362 0.91% 0.79% 4.57%
Year ended 7/31/06 $1.00 3.71% $ 455,183 0.91% 0.79% 3.65%
Year ended 7/31/05 $1.00 1.66% $ 464,391 0.90% 0.79% 1.67%
Year ended 7/31/04 $1.00 0.40% $ 387,424 0.91% 0.79% 0.40%
Year ended 7/31/03 $1.00 0.76% $ 436,687 0.90% 0.79% 0.77%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET
CLASS B SHARES
Six months ended 1/31/08 + $1.00 1.86%* $ 2,074 1.65%** 1.54%** 3.58%**
Year ended 7/31/07 $1.00 3.90% $ 1,468 1.66% 1.54% 3.83%
Year ended 7/31/06 $1.00 2.94% $ 1,216 1.66% 1.54% 2.84%
Year ended 7/31/05 $1.00 0.95% $ 1,340 1.66% 1.51% 1.14%
Year ended 7/31/04 $1.00 0.24% $ 1,651 1.66% 0.95% 0.23%
Year ended 7/31/03 $1.00 0.32% $ 2,426 1.65% 1.22% 0.33%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET
CLASS C SHARES
Six months ended 1/31/08 + $1.00 1.86%* $ 1,106 1.65%** 1.54%** 3.60%**
Year ended 7/31/07 $1.00 3.90% $ 1,066 1.66% 1.54% 3.82%
Year ended 7/31/06 $1.00 2.93% $ 879 1.66% 1.54% 2.80%
Year ended 7/31/05 $1.00 0.95% $ 1,474 1.65% 1.46% 0.85%
Year ended 7/31/04 $1.00 0.23% $ 2,843 1.66% 0.98% 0.25%
Year ended 7/31/03 $1.00 0.32% $ 154 1.65% 1.14% 0.32%
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 2.49%* $2,607,650 0.63%** 0.21%** 4.85%**
Year ended 7/31/07 $1.00 5.27% $1,687,392 0.64% 0.21% 5.14%
Year ended 7/31/06 $1.00 4.30% $1,263,609 0.65% 0.21% 4.25%
Year ended 7/31/05 $1.00 2.24% $1,077,260 0.65% 0.21% 2.24%
Year ended 7/31/04 $1.00 0.98% $1,049,608 0.65% 0.22% 0.98%
Year ended 7/31/03 $1.00 1.35% $ 766,023 0.65% 0.22% 1.24%
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET
SELECT SHARES
Six months ended 1/31/08 + $1.00 2.45%* $ 72,971 0.71%** 0.29%** 4.78%**
Year ended 7/31/07 $1.00 5.19% $ 59,901 0.72% 0.28% 5.07%
Year ended 7/31/06 $1.00 4.22% $ 35,579 0.73% 0.29% 4.16%
Year ended 7/31/05 $1.00 2.15% $ 23,924 0.73% 0.29% 2.23%
10/20/03(c) to 7/31/04 $1.00 0.70%* $ 13,267 0.73%** 0.30%** 0.92%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET
PREFERRED SHARES
Six months ended 1/31/08 + $1.00 2.41%* $ 135,944 0.78%** 0.36%** 4.73%**
Year ended 7/31/07 $1.00 5.12% $ 87,627 0.79% 0.35% 5.00%
Year ended 7/31/06 $1.00 4.15% $ 98,263 0.81% 0.36% 4.21%
Year ended 7/31/05 $1.00 2.08% $ 23,178 0.80% 0.36% 1.99%
10/20/03(c) to 7/31/04 $1.00 0.65%* $ 27,206 0.80%** 0.37%** 0.85%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET
TRUST SHARES
Six months ended 1/31/08 + $1.00 2.36%* $ 292,131 0.88%** 0.46%** 4.63%**
Year ended 7/31/07 $1.00 5.01% $ 230,909 0.89% 0.45% 4.90%
Year ended 7/31/06 $1.00 4.04% $ 160,782 0.91% 0.46% 4.18%
Year ended 7/31/05 $1.00 1.98% $ 25,047 0.90% 0.46% 2.01%
10/20/03(c) to 7/31/04 $1.00 0.57%* $ 17,591 0.90%** 0.47%** 0.75%**
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
38-39 spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET ASSET NET REALIZED LESS
VALUE, NET AND UNREALIZED DISTRIBUTIONS
BEGINNING INVESTMENT GAINS/(LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET SELECT SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET PREFERRED SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET TRUST SHARES
Six months ended 1/31/08 + $1.00 0.02(3) --^ (0.02)
Year ended 7/31/07 $1.00 0.05(3) --^ (0.05)
Year ended 7/31/06 $1.00 0.04 -- (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
SELECT SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
PREFERRED SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
10/20/03(c) to 7/31/04 $1.00 0.01 --^ (0.01)
- -------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
TRUST SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.05(3)@ --^ (0.05)
Year ended 7/31/06 $1.00 0.04 --^ (0.04)
Year ended 7/31/05 $1.00 0.02 --^ (0.02)
10/20/03(c) to 7/31/04 $1.00 --^ --^ --^
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES EXPENSES NET
NET ASSET ASSETS, TO TO INVESTMENT
VALUE, END OF AVERAGE AVERAGE INCOME
END OF TOTAL PERIOD NET NET TO AVERAGE
PERIOD RETURN (000'S) ASSETS (a) ASSETS (b) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 2.36%* $ 722,153 0.64%** 0.21%** 4.64%**
Year ended 7/31/07 $1.00 5.21% $ 487,057 0.66% 0.21% 5.08%
Year ended 7/31/06 $1.00 4.23% $ 304,332 0.66% 0.21% 4.24%
Year ended 7/31/05 $1.00 2.17% $ 264,707 0.66% 0.21% 2.16%
Year ended 7/31/04 $1.00 0.86% $ 223,852 0.66% 0.31% 0.79%
Year ended 7/31/03 $1.00 1.07% $ 616,999 0.65% 0.40% 1.04%
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET SELECT SHARES
Six months ended 1/31/08 + $1.00 2.32%* $ 30,275 0.72%** 0.29%** 4.52%**
Year ended 7/31/07 $1.00 5.13% $ 13,983 0.74% 0.29% 5.00%
Year ended 7/31/06 $1.00 4.14% $ 6,337 0.75% 0.29% 4.22%
Year ended 7/31/05 $1.00 2.09% $ 2,176 0.74% 0.30% 1.83%
10/20/03(c) to 7/31/04 $1.00 0.65%* $ 5,205 0.75%** 0.30%** 0.82%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET PREFERRED SHARES
Six months ended 1/31/08 + $1.00 2.29%* $ 272,571 0.79%** 0.36%** 4.50%**
Year ended 7/31/07 $1.00 5.05% $ 225,141 0.81% 0.36% 4.93%
Year ended 7/31/06 $1.00 4.07% $ 190,260 0.82% 0.36% 3.98%
Year ended 7/31/05 $1.00 2.02% $ 228,555 0.81% 0.36% 1.96%
10/20/03(c) to 7/31/04 $1.00 0.59%* $ 276,373 0.82%** 0.37%** 0.75%**
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY
MARKET TRUST SHARES
Six months ended 1/31/08 + $1.00 2.24%* $ 154,829 0.89%** 0.46%** 4.39%**
Year ended 7/31/07 $1.00 4.95% $ 128,682 0.91% 0.46% 4.83%
Year ended 7/31/06 $1.00 3.97% $ 96,003 0.92% 0.46% 3.85%
Year ended 7/31/05 $1.00 1.92% $ 120,743 0.91% 0.46% 1.96%
10/20/03(c) to 7/31/04 $1.00 0.51%* $ 70,270 0.92%** 0.47%** 0.66%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 2.15%* $ 789,740 0.65%** 0.21%** 4.02%**
Year ended 7/31/07 $1.00 5.15% $ 420,260 0.65% 0.21% 5.02%
Year ended 7/31/06 $1.00 4.13% $ 386,757 0.65% 0.21% 4.11%
Year ended 7/31/05 $1.00 2.08% $ 295,584 0.65% 0.21% 2.01%
Year ended 7/31/04 $1.00 0.80% $ 399,195 0.65% 0.30% 0.74%
Year ended 7/31/03 $1.00 1.02% $1,644,905 0.65% 0.40% 0.98%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
SELECT SHARES
Six months ended 1/31/08 + $1.00 2.08%* $ 16,306 0.73%** 0.29%** 4.13%**
Year ended 7/31/07 $1.00 5.06% $ 63,885 0.73% 0.29% 4.93%
Year ended 7/31/06 $1.00 4.05% $ 61,992 0.73% 0.29% 3.95%
Year ended 7/31/05 $1.00 2.00% $ 83,171 0.73% 0.29% 2.01%
10/20/03(c) to 7/31/04 $1.00 0.59%* $ 93,233 0.73%** 0.30%** 0.76%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
PREFERRED SHARES
Six months ended 1/31/08 + $1.00 2.08%* $ 436,811 0.80%** 0.36%** 3.94%**
Year ended 7/31/07 $1.00 2.08% $ 472,893 0.80% 0.36% 4.87%
Year ended 7/31/06 $1.00 3.98% $ 625,196 0.80% 0.36% 3.85%
Year ended 7/31/05 $1.00 1.93% $ 766,688 0.80% 0.36% 1.85%
10/20/03(c) to 7/31/04 $1.00 0.54%* $1,102,963 0.80%** 0.37%** 0.69%**
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET
TRUST SHARES
Six months ended 1/31/08 + $1.00 2.03%* $ 123,732 0.90%** 0.46%** 3.77%**
Year ended 7/31/07 $1.00 4.88% $ 74,548 0.90% 0.46% 4.77%
Year ended 7/31/06 $1.00 3.87% $ 113,124 0.90% 0.46% 3.79%
Year ended 7/31/05 $1.00 1.83% $ 118,018 0.90% 0.46% 1.78%
10/20/03(c) to 7/31/04 $1.00 0.46%* $ 165,402 0.90%** 0.47%** 0.58%**
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
40-41 spread
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET ASSET NET REALIZED LESS
VALUE, NET AND UNREALIZED DISTRIBUTIONS
BEGINNING INVESTMENT GAINS/(LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.03(3) -- (0.03)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 0.01 -- (0.01)
Year ended 7/31/03 $1.00 0.01 -- (0.01)
- ------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET
CLASS A SHARES
Six months ended 1/31/08 + $1.00 0.01(3) -- (0.01)
Year ended 7/31/07 $1.00 0.03(3) -- (0.03)
Year ended 7/31/06 $1.00 0.02 --^ (0.02)
Year ended 7/31/05 $1.00 0.01 --^ (0.01)
Year ended 7/31/04 $1.00 --^ -- --^
Year ended 7/31/03 $1.00 0.01 -- (0.01)
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.04(3)@ --^ (0.04)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.02 -- (0.02)
Year ended 7/31/04 $1.00 0.01 --^ (0.01)
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
CLASS A SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 -- (0.01)
Year ended 7/31/04 $1.00 --^ --^ --^
Year ended 7/31/03 $1.00 0.01 --^ (0.01)
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
SELECT SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 -- (0.01)
10/20/03(c) to 7/31/04 $1.00 --^ --^ --^
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
PREFERRED SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 -- (0.01)
10/20/03(c) to 7/31/04 $1.00 --^ --^ --^
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
TRUST SHARES
Six months ended 1/31/08 + $1.00 0.02(3) -- (0.02)
Year ended 7/31/07 $1.00 0.03(3)@ --^ (0.03)
Year ended 7/31/06 $1.00 0.03 --^ (0.03)
Year ended 7/31/05 $1.00 0.01 -- (0.01)
10/20/03(c) to 7/31/04 $1.00 --^ --^ --^
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET EXPENSES EXPENSES NET
NET ASSET ASSETS, TO TO INVESTMENT
VALUE, END OF AVERAGE AVERAGE INCOME
END OF TOTAL PERIOD NET NET TO AVERAGE
PERIOD RETURN (000'S) ASSETS (a) ASSETS (b) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 1.53%* $ 256,505 0.67%** 0.54%** 3.02%**
Year ended 7/31/07 $1.00 3.22% $ 195,970 0.67% 0.54% 3.17%
Year ended 7/31/06 $1.00 2.65% $ 189,695 0.67% 0.54% 2.63%
Year ended 7/31/05 $1.00 1.45% $ 164,404 0.67% 0.54% 1.42%
Year ended 7/31/04 $1.00 0.59% $ 197,225 0.67% 0.54% 0.59%
Year ended 7/31/03 $1.00 0.88% $ 247,805 0.67% 0.54% 0.88%
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET
CLASS A SHARES
Six months ended 1/31/08 + $1.00 1.45%* $ 14,558 0.92%** 0.70%** 2.88%**
Year ended 7/31/07 $1.00 3.04% $ 14,710 0.92% 0.70% 3.07%
Year ended 7/31/06 $1.00 2.48% $ 1,686 0.93% 0.70% 2.77%
Year ended 7/31/05 $1.00 1.30% $ 110 0.93% 0.69% 1.45%
Year ended 7/31/04 $1.00 0.49% $ 18 0.91% 0.64% 0.48%
Year ended 7/31/03 $1.00 0.78% $ 19 0.92% 0.64% 0.90%
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
INSTITUTIONAL SHARES
Six months ended 1/31/08 + $1.00 1.72%* $ 243,360 0.77%** 0.21%** 3.33%**
Year ended 7/31/07 $1.00 3.56% $ 230,703 0.79% 0.21% 3.49%
Year ended 7/31/06 $1.00 2.88% $ 214,995 0.81% 0.25% 2.88%
Year ended 7/31/05 $1.00 1.55% $ 187,829 0.80% 0.38% 1.55%
Year ended 7/31/04 $1.00 0.68% $ 136,302 0.80% 0.38% 0.67%
Year ended 7/31/03 $1.00 0.91% $ 199,439 0.78% 0.42% 0.92%
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
CLASS A SHARES
Six months ended 1/31/08 + $1.00 1.59%* $ 46,949 1.02%** 0.46%** 3.06%**
Year ended 7/31/07 $1.00 3.30% $ 38,516 1.04% 0.46% 3.24%
Year ended 7/31/06 $1.00 2.62% $ 27,027 1.06% 0.50% 2.62%
Year ended 7/31/05 $1.00 1.30% $ 25,516 1.06% 0.63% 1.30%
Year ended 7/31/04 $1.00 0.43% $ 17,590 1.05% 0.63% 0.42%
Year ended 7/31/03 $1.00 0.80% $ 53,079 1.03% 0.52% 0.80%
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
SELECT SHARES
Six months ended 1/31/08 + $1.00 1.68%* $ 17,656 0.85%** 0.29%** 3.22%**
Year ended 7/31/07 $1.00 3.47% $ 10,198 0.87% 0.29% 3.43%
Year ended 7/31/06 $1.00 2.80% $ 10,551 0.89% 0.29% 3.23%
Year ended 7/31/05 $1.00 1.47% $ 86 0.89% 0.46% 0.99%
10/20/03(c) to 7/31/04 $1.00 0.47%* $ 863 0.91%** 0.46%** 0.62%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
PREFERRED SHARES
Six months ended 1/31/08 + $1.00 1.64%* $ 24,922 0.92%** 0.36%** 3.04%**
Year ended 7/31/07 $1.00 3.40% $ 1,398 0.94% 0.36% 3.34%
Year ended 7/31/06 $1.00 2.73% $ 2,402 0.96% 0.36% 3.27%
Year ended 7/31/05 $1.00 1.40% $ 36 0.97% 0.53% 0.97%
10/20/03(c) to 7/31/04 $1.00 0.42%* $ 637 0.98%** 0.53%** 0.55%**
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET
TRUST SHARES
Six months ended 1/31/08 + $1.00 1.59%* $ 34,610 1.02%** 0.46%** 3.07%**
Year ended 7/31/07 $1.00 3.30% $ 31,721 1.04% 0.46% 3.26%
Year ended 7/31/06 $1.00 2.62% $ 26,028 1.06% 0.49% 2.81%
Year ended 7/31/05 $1.00 1.30% $ 8,625 1.04% 0.63% 1.70%
10/20/03(c) to 7/31/04 $1.00 0.34%* $ 244 1.06%** 0.63%** 0.44%**
- ------------------------------------------------------------------------------------------------------------------------------------
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.
+ Unaudited.
(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. See additional information
below regarding per share impacts and total return for the year ended July
31, 2007 had this payment not occurred.
See notes to financial statements.
42-43 spread
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
(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-two
separate investment portfolios, one of which has not commenced investment
operations.
The accompanying financial statements and notes relate only to the following
series of the Trust, each of which is diversified (individually a "Fund" and
collectively the "Funds"). Dollar amounts are in thousands unless otherwise
indicated.
FUND 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 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")
Michigan Municipal Money Market has 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 four
classes of shares: Institutional, Class A, Class B and Class C shares. Prime
Money Market Advisor shares outstanding on November 26, 2007 were exchanged for
Class A shares of the Fund. No Financial Highlights information is presented for
Advisor shares. Certain activity for the period from August 1, 2007 through
November 26, 2007 for Advisor shares is included in the Statement of Operations,
Statement of Changes in Net Assets and these Notes to Financial Statements.
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 as of this report date. 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, and Class C 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
may enter into contracts with their vendors and others that provide for the
general indemnification of Trustees and Officers. 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.
Fund Merger--On November 16, 2007, Prime Money Market ("Acquiring Fund")
acquired the net assets of Government Money Market ("Acquired Fund") pursuant to
an Agreement and Plan of Reorganization approved by shareholders of the Acquired
Fund on November 16, 2007 (the Closing and Shareholder Meeting Dates). The
acquisition was accomplished by a tax-free exchange of shares of each class of
Prime Money Market for the corresponding class of Government Money Market as of
the Closing Date. Information about the combining funds as of this date is as
follows; the shares issued by the Acquired Fund are disclosed in the Statement
of Changes in Net Assets.
NET ASSETS AS OF
FUND DESCRIPTION NOVEMBER 16, 2007
- ---- ----------- -----------------
Prime Money Market Acquiring Fund $1,474,190
Government Money Market Acquired Fund 205,339
----------
Prime Money Market After Acquisition $1,679,529
==========
(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
44
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
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.
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 relevant
repurchase agreement transaction. Risks may arise from the potential inability
or unwillingness of counterparties to honor the terms of a 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 or
capital gain distributions from investment company securities are 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.
Other--Expenses directly attributable to a Fund are charged to the Fund, while
expenses 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 specifically related 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.
Federal Taxes--It is the intention of each Fund to qualify or continue to
qualify as a regulated investment company for purposes of U.S. federal tax laws
by complying with the provisions available to certain investment companies, as
defined in applicable sections of the U.S. 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.
The Financial Accounting Standards Board ("FASB") issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement
No. 109 ("FIN 48"), in June 2006. FIN 48 permits the recognition of tax benefits
of an uncertain tax position only when the position is "more likely than not" to
be sustained assuming examination by taxing authorities. The Funds adopted the
provisions of FIN 48 on August 1, 2007. Management has reviewed the Funds' tax
positions for all open tax years, and concluded that adoption had no effect on
each Fund's financial position or results of operations. At January 31, 2008,
the Funds have recorded no liability for net unrecognized tax benefits relating
to uncertain income tax positions taken or expected to be taken in future tax
returns.
45
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
The Funds file U.S. tax returns. While the statute of limitations remains open
to examine the Funds' U.S. tax returns filed for the fiscal years from
2004-2007, no examinations are in progress or anticipated as of this report
date. The Funds are not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
New Accounting Pronouncements--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 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 this report date, 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--FTAM 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
to the Funds, FTAM receives an investment advisory fee computed daily based on
each Fund's average daily net assets and paid monthly. 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 the ("Administrator") and
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
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 fees, waivers and expense limitations below.
Advisory Fee, Waivers, Expense Limitations--In its capacity as Advisor and
Administrator, FTAM has 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
specified expense limit for the Fund, the excess amount will be borne by FTAM.
If the operating expenses are less than the specified expense limit for the
Fund, FTAM 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,
46
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
under the period of the agreement (currently the period for the 12 months
commencing November 29, 2007). 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 as of this report date are as follows:
CLASS EXPENSE LIMITATION*
--------------------------------------------------
ADMINI- REIMBURSE-
ADVISORY EXPENSE STRATION MENT
ADVISORY FEE LIMITATION FEE RECOVER-
FUND FEE WAIVER ** WAIVER INSTITUTIONAL A B C ABLE***
- ----------------------------------------------------------------------------------------------------------------------------------
Prime Money Market 0.40% NA C 0.08% 0.54% 0.79% 1.54% 1.54% $ 256
Institutional Money Market 0.40% 0.30% C 0.07% 0.21% NA NA NA $2,019
Institutional Government
Money Market 0.40% 0.30% C 0.045% 0.21% NA NA NA $ 783
U.S. Treasury Money Market 0.40% 0.30% C 0.10% 0.21% NA NA NA $1,063
Michigan Municipal Money Market 0.40% NA C 0.065% 0.54% 0.70%# NA NA $ 42
Municipal Money Market 0.50% 0.40% C 0.04% 0.21% 0.46% NA NA $ 385
* 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, 2007.
*** The cumulative amounts waived and/or reimbursed in thousands and which may
be potentially recoverable by FTAM under the expense limitation agreements
for the period from November 29, 2007 through January 31, 2008.
# 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 annual 12b-1 fee as follows:
Michigan Municipal Money Market Class A - 0.09%.
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% In excess of $500 million up to $1 billion
0.010% In excess of $1 billion
In addition, a $10,000 annual flat per class, per fund fee applies beyond the
initial class of shares.
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining
competitive expense ratios.
Distribution and/or Servicing Fees, Waivers--The Trust has adopted a
Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. FTAM Funds
Distributor, Inc. is the Trust's distributor/principal underwriter (the
"Distributor"). Under the terms of the Plan, the Funds will compensate the
Distributor from the net assets of the Funds' Class A, Class B and Class C
shares to finance activities intended to result in the sales of each Fund's
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. The Distributor
has voluntarily agreed to limit the expenses of certain classes of certain funds
by way of waiving a portion of the Distribution and/or Servicing Fee; annual
12b-1 fees and voluntary waivers are shown below.
CLASS DISTRIBUTION/SERVICING FEE DISTRIBUTION/SERVICING FEE WAIVER
----- -------------------------- ---------------------------------
Class A 0.25% 0.09% - Michigan Municipal Money Market
Class B 1.00% NA
Class C 0.75% NA
Advisor 0.50% NA
In addition, the Distributor earned contingent deferred sales commissions (CDSC)
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). FTAM is the Class C advance commission finance agent. CDSCs on Class C
shares for the period ended as of this report date were $6,920, a majority of
which was attributed to FTAM. Affiliates of FTAM earned reallowed 12b-1
distribution/servicing fees as well as administrative servicing fees (see below)
of $1,977,516 for the period ended as of the report date.
47
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
Administrative Servicing Fee--The Trust has an Administrative Servicing
Agreement with the Distributor with respect to Class C, Select, Preferred and
Trust shares. Under the Agreements, certain administrative services, including
those relating to the maintenance of shareholder accounts, were provided to
these shareholders during the year. The Distributor, as well as other financial
institutions (which may include affiliates of the Advisor) receive fees computed
at annual rates up to those shown below, based on average daily net assets of
the respective classes.
CLASS ADMINISTRATIVE SERVICING FEE
----- ----------------------------
Class C 0.25%
Select 0.08%
Preferred 0.15%
Trust 0.25%
Transfer and Dividend Disbursing Agent--Pursuant to a Services Agreement with
the Trust dated May 14, 2007, FTAM provides certain services on behalf of the
Trust. Under this agreement, FTAM's fees are paid monthly and are accrued daily
based upon each Fund of the Trust's relative average daily net assets, at the
aggregate annual rate of $370,000. FTAM earned $185,000 in service fees for the
period ended as of this report date.
Other--Certain officers of the Trust are also officers of FTAM and/or its
affiliates. Effective June 28, 2007, certain non-principal officers of the Trust
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. The amounts paid to each Fund
are disclosed in the Statements of Changes in Net Assets as Increase from
payment by the advisor for the fiscal year ended July 31, 2007. The amounts were
allocated among the components of net assets for the year then ended for each
applicable Fund based upon its character for federal income tax purposes. The
total returns for the year ended July 31, 2007 for each class of the applicable
Funds would have been lower had the payments not been made; see the Notes to
Financial Highlights.
(4) LINE OF CREDIT
As of February 1, 2008 the Funds of the Trust have an uncommitted unsecured line
of credit facility with State Street Bank and Trust Company. Under the terms of
the agreement, the Funds of the Trust may borrow up to $100 million in the
aggregate. The purpose of the facility is to borrow funds if necessary to meet
temporary or emergency cash needs, including to fund redemption requests that
might otherwise require the untimely disposition of securities. Borrowings may
not exceed 33 1/3% of the Fund's net assets and must be repaid within 60 days.
Drawn loans will be priced at a bid rate, though, in any event, not less than
State Street's overnight federal funds annual rate plus the annual rate of
0.50%.
48
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 JULY 31, 2006*
--------------------------------------------- ----------------------------------------------
TAX TOTAL TAX TOTAL
ORDINARY INCOME EXEMPT DISTRIBUTIONS ORDINARY INCOME EXEMPT DISTRIBUTIONS
DISTRIBUTIONS DISTRIBUTIONS PAID DISTRIBUTIONS DISTRIBUTIONS PAID
------------- ------------- ---- ------------- ------------- ----
Prime Money Market $54,639 $ -- $54,639 $47,592 $ -- $47,592
Institutional Money Market 93,444 -- 93,444 54,536 -- 54,536
Institutional Government
Money Market 36,302 -- 36,302 24,332 -- 24,332
Government Money Market 10,392 -- 10,392 7,859 -- 7,859
U.S. Treasury Money Market 55,939 -- 55,939 45,276 -- 45,276
Michigan Municipal Money Market -- 6,205+ 6,205 --^ 4,472 4,472
Municipal Money Market -- 10,040+ 10,040 -- 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.
As of July 31, 2007, the components of accumulated earnings/(deficit) on a tax
basis was as follows:
TOTAL
ACCUMULATED ACCUMULATED
UNDISTRIBUTED TAX UNDISTRIBUTED CAPITAL AND EARNINGS/
EXEMPT INCOME ORDINARY 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 state of Michigan, and its respective
political subdivisions, agencies and public authorities at this report date. 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.
49
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
RESULTS OF SHAREHOLDER PROXY
At a special meeting of shareholders of the Fifth Third Government Money Market
Fund (the "Fund"), a series of the Fifth Third Funds (the "Trust") held on
November 16, 2007, the results of the proposal were as follows:
Proposal: To approve an Agreement and Plan of Reorganization providing for the
transfer of all of the assets of the Fund to the Fifth Third Prime Money Market
Fund.
VOTES
--------------------------------------
Affirmative 182,512,135
Against 3,836,364
Abstain 372,288
50
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 August 1, 2007 through January 31,
2008.
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
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------------------------------------------------------------
Prime Money Market Institutional Shares $1,000.00 $1,023.70 $2.75 0.54%
Class A Shares 1,000.00 1,022.50 3.97 0.79%
Class B Shares 1,000.00 1,018.60 7.81 1.54%
Class C Shares 1,000.00 1,018.60 7.81 1.54%
Institutional Money Market Institutional Shares 1,000.00 1,024.90 1.07 0.21%
Select Shares 1,000.00 1,024.50 1.48 0.29%
Preferred Shares 1,000.00 1,024.10 1.83 0.36%
Trust Shares 1,000.00 1,023.60 2.34 0.46%
Institutional Government Money Market Institutional Shares 1,000.00 1,023.60 1.07 0.21%
Select Shares 1,000.00 1,023.20 1.47 0.29%
Preferred Shares 1,000.00 1,022.90 1.83 0.36%
Trust Shares 1,000.00 1,022.40 2.34 0.46%
U.S. Treasury Money Market Institutional Shares 1,000.00 1,021.50 1.07 0.21%
Select Shares 1,000.00 1,020.80 1.47 0.29%
Preferred Shares 1,000.00 1,020.80 1.83 0.36%
Trust Shares 1,000.00 1,020.30 2.34 0.46%
Michigan Municipal Money Market Institutional Shares 1,000.00 1,015.30 2.74 0.54%
Class A Shares 1,000.00 1,014.50 3.54 0.70%
Municipal Money Market Institutional Shares 1,000.00 1,017.20 1.06 0.21%
Class A Shares 1,000.00 1,015.90 2.28 0.46%
Select Shares 1,000.00 1,016.80 1.47 0.29%
Preferred Shares 1,000.00 1,016.40 1.82 0.36%
Trust Shares 1,000.00 1,015.90 2.33 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.
51
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
- --------------------------------------------
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fifth Third Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may however use this information to compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
8/1/07 1/31/08 8/1/07 - 1/31/08 8/1/07 - 1/31/08
---------------------------------------------------------------
Prime Money Market Institutional Shares $1,000.00 $1,022.54 $2.76 0.54%
Class A Shares 1,000.00 1,021.33 3.98 0.79%
Class B Shares 1,000.00 1,017.49 7.85 1.54%
Class C Shares 1,000.00 1,017.49 7.85 1.54%
Institutional Money Market Institutional Shares 1,000.00 1,024.90 1.07 0.21%
Select Shares 1,000.00 1,024.50 1.48 0.29%
Preferred Shares 1,000.00 1,024.10 1.83 0.36%
Trust Shares 1,000.00 1,023.60 2.34 0.46%
Institutional Government Money Market Institutional Shares 1,000.00 1,024.08 1.07 0.21%
Select Shares 1,000.00 1,023.68 1.48 0.29%
Preferred Shares 1,000.00 1,023.33 1.83 0.36%
Trust Shares 1,000.00 1,022.82 2.34 0.46%
U.S. Treasury Money Market Institutional Shares 1,000.00 1,024.08 1.07 0.21%
Select Shares 1,000.00 1,023.68 1.48 0.29%
Preferred Shares 1,000.00 1,023.33 1.83 0.36%
Trust Shares 1,000.00 1,022.82 2.34 0.46%
Michigan Municipal Money Market Institutional Shares 1,000.00 1,022.42 2.75 0.54%
Class A Shares 1,000.00 1,021.62 3.56 0.70%
Municipal Money Market Institutional Shares 1,000.00 1,024.08 1.07 0.21%
Class A Shares 1,000.00 1,022.87 2.29 0.46%
Select Shares 1,000.00 1,023.68 1.48 0.29%
Preferred Shares 1,000.00 1,023.33 1.83 0.36%
Trust Shares 1,000.00 1,022.82 2.34 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
- --------------------------------------------------------------------------------
The Board of Trustees of Fifth Third Funds (the "Trust"), at a meeting held on
September 12, 2007, formally considered the Trust's investment advisory
agreement with Fifth Third Asset Management, Inc. ("FTAM" or the "Adviser") with
respect to all Funds of the Trust, a sub-advisory agreement of FTAM with Morgan
Stanley Investment Management Inc. ("MSIM" or the "Sub-Adviser") with respect to
the International Equity Fund and a sub-advisory agreement of FTAM with Fort
Washington Investment Advisors, Inc. ("Fort Washington" or, also a
"Sub-Adviser") (the "Sub-Advisers" collectively with the Adviser, the
"Advisers") with respect to the High Yield Bond Fund (collectively, the
"Advisory Agreements").
The Board of Trustees (the "Board" or the "Trustees") reviewed extensive
material in connection with their review of the Advisory Agreements, including
data compiled by Lipper, Inc. ("Lipper"), an independent source of mutual fund
data, which included comparisons with industry averages for comparable funds of
advisory fees, 12b-1 fees, administration fees, transfer agency fees, and total
fund expenses. The data reflected FTAM's fee waivers in place, as well as FTAM's
contractual advisory fees. FTAM also provided the Board with the results of a
three-pronged performance and expense test developed by FTAM. The Board received
reports from FTAM's Chief Investment Officer with respect to brokerage
practices, best execution, fund performance, and expense trends. The Board was
assisted in its review by independent legal counsel, who provided a memorandum
detailing the legal standards for review of the Advisory Agreements. The Board
received a detailed presentation by FTAM, which included a fund-by-fund analysis
of performance and profitability. Detailed presentations were also provided by
each Sub-Adviser. The Board deliberated outside the presence of management and
the Advisers.
In their deliberations, each Trustee attributed different weights to various
factors involved in their analysis of whether the Advisory Agreements should be
continued, and no factor alone was considered determinative. The Trustees
determined that the overall arrangements between the Trust and FTAM, between
FTAM and MSIM, and between FTAM and Fort Washington, as provided in the Advisory
Agreements, were fair and reasonable, and that the continuance of the Advisory
Agreements, were in the best interests of each Fund of the Trust and its
shareholders.
The matters addressed below were considered and discussed by the Trustees in
reaching their conclusions.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent,
and quality of the services provided to each Fund of the Trust under the
Advisory Agreements. The Trustees took into account information furnished
throughout the year at Board meetings, as well as materials furnished
specifically in connection with the annual review process. The Trustees
considered the background and experience of each Adviser's senior management and
the expertise of the investment personnel of each Adviser responsible for the
day-to-day management of each Fund of the Trust.
The Trustees received information concerning the investment philosophy and
investment processes applied by the Advisers in managing the Trust. The Trustees
also considered information regarding regulatory compliance and compliance with
the investment policies of the Trust. The Trustees evaluated the trading
practices of each Adviser. The Trustees also evaluated the procedures of the
Advisers designed to fulfill the Advisers' fiduciary duty to the Trust with
respect to possible conflicts of interest, including the Advisers' codes of
ethics (regulating the personal trading of its officers and employees).
Based on their review, the Trustees concluded that, with respect to the quality
and nature of services to be provided by the Advisers, the scope of
responsibilities was typical of those of investment advisers and sub-advisers to
open-end mutual funds generally, and that the quality of the services was very
satisfactory.
Investment Performance
The Trustees considered performance results of each Fund in absolute terms and
relative to each Fund's peer group. In conducting their review of performance,
both long- and short-term performance were considered. The Trustees noted that
performance varied considerably and they focused their review of performance on
those Funds whose performance compared unfavorably with their respective peers
(both Lipper and benchmark) over the most recent one-year, three-year and
five-year periods. The Trustees noted that the performance of the Micro Cap
Value Fund, the Intermediate Bond Fund, the Quality Growth Fund, the Balanced
Fund, the Dividend Growth Fund, and the Technology Fund ranked in the bottom
third in their respective Lipper and
53
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
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benchmark rankings for at least two of the one-year, three-year, and five-year
periods. The Trustees considered the unique asset class and supply constraints
FTAM faced with respect to the Micro Cap Value Fund. The Trustees considered
FTAM's strategic considerations with respect to the Intermediate Bond Fund, the
Balanced Fund, and the Technology Fund. With respect to the Quality Growth Fund
and the Dividend Growth Fund, the Trustees also noted the contractual expense
limitation agreements put in place last year.
With respect to the International Equity Fund, the Trustees noted that the Fund
had outperformed its benchmark for the year-to-date period and over the past
one-year period ended July 31, 2007 and had performed in the top one-third of
its peer group for the past three-, five-, and seven-year periods.
With respect to the High Yield Bond Fund of Fort Washington, the Trustees noted
that while the Fund had slightly underperformed its benchmark for the one-year
period, the Fund focused on the higher quality segments of the high yield bond
market.
Based on their review and consideration of FTAM's attempts to address
performance issues, the Trustees concluded that the performance of each of the
Funds of the Trust was satisfactory or better.
Cost of Services and Profits Realized by FTAM and Its Affiliates
The Trustees considered comparable peer group information with respect to the
advisory fees charged by FTAM to each of the Funds of the Trust, taking into
consideration both contractual and actual (i.e., after waiver) fee levels. The
Trustees also reviewed administration, accounting, and custody fees received by
FTAM. The Trustees also considered the fallout benefits to FTAM of soft dollars,
based on presentations to the Board. The Trustees reviewed profitability
information provided by FTAM with respect to investment advisory,
administration, accounting, transfer agency, and custody services to each Fund
of the Trust. The Trustees recognized that such data is not typically audited
and therefore represented FTAM's own determination of its revenues, as well as
the revenues of its affiliates, from the contractual services provided to the
Trust, less expenses of providing such services. Expenses included direct and
indirect costs, and were calculated using an allocation methodology developed by
FTAM. The Trustees recognized the difficulty in making comparisons of
profitability to other investment advisers because comparative information is
affected by numerous factors, including the structure of the particular adviser,
the types of funds it manages, its business mix, and numerous assumptions
regarding allocations. The Trustees also considered the impact that the proposed
additional expense limitations would have on FTAM's profitability. Based on
their review, the Trustees concluded that the profitability to FTAM under the
Advisory Agreement was not unreasonable in light of the services and benefits
provided to each Fund of the Trust.
With respect to each Sub-Advisers profitability, the Trustees noted that
sub-advisory fees are paid by FTAM, rather than directly from the Trust's
assets. The Board also concluded that the these fees were fair and reasonable,
in light of the services and benefits provided to each Fund.
Economies of Scale
The Trustees also considered whether fee levels reflected economies of scale and
whether economies of scale would be produced by the growth of the Trust's
assets. The Trustees took into account the asset growth in the Trust's assets
over the last year. The Trustees noted the expense limitations proposed by FTAM
for the International Equity Fund, the Intermediate Municipal Bond Fund and the
Quality Growth Fund. The Trustees also considered the expense limitations
previously enacted and proposed for extension for the Prime Money Market Fund,
the Michigan Municipal Money Market Fund, the Municipal Money Market Fund, the
Institutional Money Market Fund, the Institutional Government Money Market Fund,
the U.S. Treasury Money Market Fund, the Structured Large Cap Plus Fund, the
Equity Index Fund, the LifeModel Aggressive FundSM, the LifeModel Moderately
Aggressive FundSM, the LifeModel Moderate FundSM, the LifeModel Moderately
Conservative FundSM, the LifeModel Conservative FundSM, the High Yield Bond
Fund, the Michigan Municipal Bond Fund, the Strategic Income Fund, the All Cap
Value Fund, the Small Cap Value Fund, the Mid Cap Growth Fund, the Small Cap
Growth Fund, the Disciplined Large Cap Value Fund, the Total Return Bond Fund,
the Short Term Bond Fund, the Intermediate Bond Fund, the Municipal Bond Fund,
the U.S. Government Bond Fund, the Government Money Market Fund, and the
Dividend Growth Fund. The Trustees took into account the impact of the expense
limitations and the resulting decrease in revenue for FTAM. The Trustees
concluded that the asset levels of the Trust were currently not so large as to
warrant formal contractual breakpoints, and that the contractual expense
limitations were a reasonable way to provide the benefits of economies of scale
to shareholders at this time.
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56
ADDRESSES
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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
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Distributor FTAM Funds Distributor, Inc.
1290 Broadway, Suite 1100
Denver, Colorado 80203
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Custodian, Sub-Accountant and Sub-Administrator State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, Missouri 64105
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Transfer and Dividend Disbursing Agent Boston Financial Data Services, Inc.
30 Dan Road
Canton, Massachusetts 02021
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Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP
1055 Broadway, 10th Floor
Kansas City, MO 64105
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FIFTH THIRD FUNDS
FTF1030 013109
1/08 SAR-MMF-08
ITEM 2. CODE OF ETHICS.
Not applicable - only for annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable - only for annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable - only for annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments is included as part of the Semi-Annual report in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have concluded as of a date within 90 days of the filing of
this report, based on their evaluation of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940 (17 CFR 270.30a-3(c))) that the design
and operation of such procedures are effective to provide reasonable
assurance that information required to be disclosed by the registrant
on Form N-CSR is recorded, processed, summarized, and reported within
the time periods specified in the 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) Not applicable - only for annual reports.
(a)(2) The certifications required by Rule 30a-2(a) of the Investment Company
Act of 1940, as 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
E. Keith Wirtz
- -----------------------------
E. Keith Wirtz
President
Date: April 3, 2008
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: April 3, 2008
/s/ Shannon King
- -----------------------------
Shannon King
Treasurer
(Principal Financial and Accounting Officer)
Date: April 3, 2008