UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER: 811-5669 ----------------------------------------- FIFTH THIRD FUNDS (Exact Name of Registrant as Specified in Charter) ----------------------------------------- 38 Fountain Square Plaza Cincinnati, Ohio 45263 (Address of Principal Executive Office) (Zip Code) ----------------------------------------- Registrant's Telephone Number, including area code: (800) 282-5706 (Name and Address of Agent for Service) E. Keith Wirtz 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 - -------------------------------------------------------------------------------- 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 This page intentionally left blank. 3 MANAGEMENT DISCUSSION OF FUND PERFORMANCE Small Cap Growth Fund - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 6 Months# 1 Year 5 Year 10 Year --------- ------ ------ -------- Institutional -9.28% -2.52% 12.52% 4.40% - -------------------------------------------------------------------------------- Class A Shares -13.85% -7.56% 11.12% 3.60% - -------------------------------------------------------------------------------- Class B Shares -12.61% -6.57% 11.25% 3.34% - -------------------------------------------------------------------------------- Class C Shares -10.30% -3.57% 11.40% 3.34% - -------------------------------------------------------------------------------- Russell 2000(R) Growth Index(1) -7.04% -4.18% 15.15% 3.46% - -------------------------------------------------------------------------------- Lipper Small-Cap Growth Funds Average(1) -8.28% -4.24% 13.65% 6.45% - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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 This page intentionally left blank. 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 This page intentionally left blank. 189 This page intentionally left blank. 190 This page intentionally left blank. 191 This page intentionally left blank. 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 - -------------------------------------------------------------------------------- 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. 54 This page intentionally left blank. 55 This page intentionally left blank. 56 ADDRESSES - ------------------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds 38 Fountain Square Plaza Cincinnati, Ohio 45202 - ------------------------------------------------------------------------------------------- Investment Advisor, Administrator and Accountant Fifth Third Asset Management, Inc. 38 Fountain Square Plaza Cincinnati, Ohio 45202 - ------------------------------------------------------------------------------------------- Distributor 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 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