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: July 31, 2008 ITEM 1. REPORT TO STOCKHOLDERS. - -------------------------------------------------------------------------------- Fifth Third Funds [GRAPHIC] 2008 Stock and Bond Mutual Funds Annual Report to Shareholders July 31, 2008 Advised by [FTAM LOGO] FIFTH THIRD ASSET MANAGEMENT - -------------------------------------------------------------------------------- NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi- annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to 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 ........................................................... 6 Quality Growth ........................................................... 8 Dividend Growth .......................................................... 10 Micro Cap Value .......................................................... 12 Small Cap Value .......................................................... 14 All Cap Value ............................................................ 16 Disciplined Large Cap Value .............................................. 18 Structured Large Cap Plus ................................................ 20 Equity Index ............................................................. 22 International Equity ..................................................... 24 Strategic Income ......................................................... 26 Fifth Third LifeModel Aggressive(SM) ..................................... 28 Fifth Third LifeModel Moderately Aggressive(SM) .......................... 32 Fifth Third LifeModel Moderate(SM) ....................................... 36 Fifth Third LifeModel Moderately Conservative(SM) ........................ 40 Fifth Third LifeModel Conservative(SM) ................................... 44 High Yield Bond .......................................................... 48 Total Return Bond ........................................................ 50 Short Term Bond .......................................................... 52 Municipal Bond ........................................................... 54 Intermediate Municipal Bond .............................................. 56 Ohio Municipal Bond ...................................................... 58 Michigan Municipal Bond .................................................. 60 Schedules of Investments ................................................. 63 Notes to Schedules of Investments ........................................ 130 Statements of Assets and Liabilities ..................................... 132 Statements of Operations ................................................. 137 Statements of Changes in Net Assets ...................................... 142 Statement of Cash Flows .................................................. 166 Financial Highlights ..................................................... 168 Notes to Financial Highlights ............................................ 204 Notes to Financial Statements ............................................ 205 Report of Independent Registered Public Accounting Firm .................. 222 Supplemental Information ................................................. 223 Our Message to You - -------------------------------------------------------------------------------- The past fiscal year proved trying for equity and fixed income markets alike, generating losses for investors worldwide, including many Fifth Third Funds shareholders. In the weeks following the close of the fiscal year, dramatic volatility, particularly in the financial sector, continued to disrupt equity and fixed income markets. The bailouts of government-sponsored enterprises such as Freddie Mac and Fannie Mae, coupled with the bankruptcy of Lehman Brothers Holdings and issues with other entities such as insurer American International Group, rattled confidence in the entire financial system, which heightened anxieties. During such periods of uncertainty, your Fifth Third Funds portfolio managers steadily monitor developments and revisit all holdings to ensure that fundamentals remain sound and our reasons for investing still ring true, regardless of the broader market's actions. o A 11.09% decline for the S&P 500 Index of large cap stocks. o A 4.96% decline for the S&P 400 Index of mid cap stocks. o A 8.28% decline for the S&P 600 Index of small cap stocks. o A 12.19% decline for the MSCI EAFE Index of international stocks. Few corners of the market were spared from the broad-based selloff as the U.S. contended with a slowing economy, tumbling housing market and rising inflationary pressures. Growth stocks generally outperformed value holdings during the period and investors tended to avoid companies with any hint of a problem. Globally, developing economies generally benefited from soaring commodity prices and in turn, emerging market stocks outperformed those from established economies during the 12-month period. We know periods such as these can be discouraging for investors of all stripes, as no one enjoys seeing hard-earning savings eroded by market forces. But in the face of such turmoil, we believe it is important to remember the value of a well-diversified portfolio to help mitigate volatility in near-term storms. Taking a step back, a number of factors contributed to the financial market's malaise during the fiscal year, including: 1. The dramatic downturn in the financials sector, fueled by collapsing debt markets, a deteriorating housing industry and a wide-scale push to raise capital. After feasting on cheap credit and growing increasingly sloppy with lending standards over the past few years, many banks had their comeuppance during the period and struggled with plummeting share prices. 2. Credit market woes. From municipal market issues to high yield bonds, fixed income investments saw minimal appreciation - if any - during the period. Much of the performance stemmed from a wide-scale aversion to risk, which started in the mortgage-related securities and spread to asset-backed and corporate bonds. With little discrimination between varied quality profiles, we believe that the broad downturn potentially resulted in attractive opportunities for long-term investors to add high quality bonds on the cheap. 3. Spiking commodity prices. As oil surged to more than $140 a barrel, grains climbed to new highs and raw materials soared, inflationary concerns swept across the globe. Driven in part by strong demand from developing economies, the rising prices propped up costs on everything from breakfast cereal to jet fuel. 4. The U.S. economic slowdown. As housing values kept retreating and gasoline prices marched steadily higher, consumer confidence eroded through the latter portion of the period. The Federal Reserve responded by slashing its key lending rate from 5.25% to 2.00% over the 12-month period. Risk-averse financial institutions scaled back credit operations none the less. The economic stimulus payments distributed during the summer provided a lift in consumer spending, but the long-term effect remains unclear. 5. Reasonably sound corporate profit growth. Aside from the well-documented challenges facing the financials sector, many U.S. corporations reported relatively healthy financial results, especially those with exposure to international markets. But since most equities were painted with a negative brush during the market's retreat, FTAM believes historically low price-to-earnings ratios on some stocks potentially indicated attractive entry points in some cases. 1 6. Enduring economic growth rates around the world. Despite modest slowdowns and rising prices in 2008, many global economies remained generally robust during the period. Most remarkable was the performance of developing countries, which didn't collapse as soon as warning flags emerged in well- established economies. Instead, solid contributions from energy and materials producers buffered the emerging markets sector. Within the bond market, U.S. Treasury issues benefited from a general flight to quality and led the way during the 12-month period covered by this annual report. Riskier securities lagged significantly, with bonds tied to subprime mortgages trailing the market. Municipal bonds also slid as monoline insurers, which back debt issued by less-stable municipalities, sustained rating downgrades during the period. Cash investments contended with shrinking yields as the Federal Reserve trimmed its key lending rate from 5.25% to 2.00% over the 12-month period. While long-term interest rates fluctuated during the period, the U.S. Treasury yield curve steepened, with short-term yields falling farther than long-term rates. Although markets have struggled during the past 12 months, we believe investments in higher quality instruments may offer opportunities to benefit once the markets begin to recover. Packed with high quality stocks and bonds supported by solid fundamentals, we believe the family of Fifth Third Funds is well-positioned to weather the current turbulence. Enhancing my optimism is my belief that the Fifth Third portfolio managers are committed to seeking out the market's true drivers - today and down the road. Looking ahead, our expectations on the macro front include: o We predict no further rate cuts by the Federal Reserve in 2008. o We predict U.S. economic growth conditions slowing in the second half of 2008. We expect increased anxiety about an actual contraction in the economy during early 2009. o We predict all troubles lead to housing. We expect near-term weakness, but our early 2009 thoughts are potentially more positive at present. We believe we may be close to the bottom. o We predict global economic growth around 4% for 2008, although the economic climate is slowing worldwide. o Absent financials, which have pushed the average earnings results into negative territory, we predict respectable profit growth among U.S. corporations with annual earnings per share figures rising about 8%. o We predict a rebound in the value of the U.S. dollar. o We predict a possible restoration of traditional risk-reward profiles in the fixed income market. In closing, market developments since the fiscal year's start on August 1, 2007, have been challenging and investors' patience has been tested. More successful investors, however, tend to recognize that markets swing both up and down and recognize the importance of an overall well-diversified investment portfolio to help achieve their investment goal. Importantly, our holdings are quality oriented and reflect strong fundamentals. Knowing from past experience that such stocks and bonds historically lead the market, I am confident that your patience in our Funds will ultimately be rewarded. Thank you for your confidence in Fifth Third Funds. /s/ Keith Wirtz Keith Wirtz, CFA Chief Investment Officer - -------------------------------------------------------------------------------- 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. The Moody's quality rating scale ranges from "Aaa" on the high end to "C" on the low end with seven intermediate categories. 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. The P/B Ratio, or Price-to-Book Ratio, is used to compare a stock's market value to its book value. 2 This page intentionally left blank. 3 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Small Cap Growth Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Small Cap Growth Fund (Institutional) declined 10.17% on a net of fee basis, underperforming its benchmark, the Russell 2000(R) Growth Index, which slipped 3.76%. The U.S. economy weakened significantly through the period, undermined by credit market problems, a near- doubling of the price of oil and a collapsing housing market. Though the Federal Reserve responded aggressively with seven rate cuts, which slashed the prime lending rate from 5.25% to 2.00% over the 12-month period, consumer confidence slumped and unemployment figures climbed through the latter months. Along with the macroeconomic issues, small cap equities contended with unusual hedge fund interest during the period, and the resulting trading impact generally contributed positively to the benchmark's performance. As for the Fund, it was weighed down by poor stock selection in the information technology sector in particular. Holdings from an assortment of industries, including software, Internet software, communications equipment and semiconductors, all struggled during the period. In addition, exposure in the consumer discretionary and telecommunication services sectors hindered returns, as did a significant underweight position, relative to the benchmark, in the surging biotechnology group. Despite these negatives, investments in health care equipment and supplies companies aided performance, as did investments in oilfield equipment and services stocks in the energy sector and industrials sector holdings in the electrical equipment and machinery industries. The Fund also received a relative lift from a lack of exposure to the struggling hotel and leisure, household durables and automobile components industries within consumer discretionary. During the period, the Fund reduced exposure in the technology area. Additionally, a continued distaste for consumer-related stocks prompted a move out of textile and apparel manufacturers and retailers. Proceeds were directed into select names in the energy sector and in the electrical equipment, health care provider, capital market and chemical industries. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Small capitalization funds typically carry additional risk since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------- ------ ------- -------- Institutional -10.17% 7.58% 4.51% $15,541 - -------------------------------------------------------------------------------- Class A Shares -14.98% 6.20% 3.70% $15,131 - -------------------------------------------------------------------------------- Class B Shares -13.98% 6.35% 3.44% $14,030 - -------------------------------------------------------------------------------- Class C Shares -11.14% 6.48% 3.45% $14,033 - -------------------------------------------------------------------------------- Russell 2000(R) Growth Index(1) -3.76% 9.27% 3.94% $14,715 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.09% (Institutional Shares), 1.34% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments + - -------------------------------------------------------------------------------- AZZ, Inc. .............................................................. 1.79% NuVasive, Inc. ......................................................... 1.60% Complete Production Services, Inc. ..................................... 1.60% Digital Realty Trust, Inc. ............................................. 1.48% DXP Enterprises, Inc. .................................................. 1.48% American Public Education, Inc. ........................................ 1.47% T-3 Energy Services, Inc. .............................................. 1.44% Titan Machinery, Inc. .................................................. 1.43% Icon PLC ADR ........................................................... 1.40% BioMartin Pharmaceuticals, Inc. ........................................ 1.39% * Long-term securities. + Portfolio composition is subject to change. 4 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Small Cap Growth Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Fifth Third Small Cap Growth Russell 2000(R) (Institutional Shares) Growth Index ---------------------------- --------------- 7/31/98 $ 10,000 $ 10,000 $ 8,553 $ 8,471 12/98 $ 9,766 $ 10,474 $ 8,966 $ 10,298 $ 10,739 $ 11,816 $ 10,404 $ 11,235 12/99 $ 12,498 $ 14,987 $ 13,521 $ 16,379 $ 13,346 $ 15,171 $ 13,586 $ 14,568 12/00 $ 12,450 $ 11,626 $ 10,617 $ 9,858 $ 12,168 $ 11,630 $ 9,895 $ 8,364 12/01 $ 11,939 $ 10,553 $ 12,197 $ 10,346 $ 10,793 $ 8,722 $ 8,724 $ 6,845 12/02 $ 8,954 $ 7,359 $ 8,663 $ 7,074 $ 10,107 $ 8,782 $ 11,118 $ 9,702 12/03 $ 12,577 $ 10,932 $ 12,823 $ 11,542 $ 12,741 $ 11,553 $ 11,933 $ 10,858 12/04 $ 13,337 $ 12,496 $ 12,861 $ 11,643 $ 13,193 $ 12,048 $ 13,758 $ 12,809 12/05 $ 13,955 $ 13,015 $ 16,318 $ 14,884 $ 15,106 $ 13,805 $ 14,719 $ 13,562 12/06 $ 15,637 $ 14,752 $ 16,591 $ 15,117 $ 18,137 $ 16,128 $ 17,905 $ 16,130 12/07 $ 17,366 $ 15,791 $ 14,657 $ 13,766 $ 15,714 $ 14,381 07/31/08 $ 15,541 $ 14,715 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 2000(R) Growth Index. The Russell 2000(R) Growth Index tracks the performance of common stocks that measure the performance of the securities found in the Russell 2000(R) universe with higher forecasted growth values. The Russell 2000(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 5 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Mid Cap Growth Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Mid Cap Growth Fund (Institutional) declined 11.24% on a net of fee basis, trailing its benchmark, the Russell Midcap(R) Growth Index, which fell 7.92%. The U.S. economy weakened significantly through the period, undermined by credit market problems, a near- doubling of the price of oil and a collapsing housing market. Though the Federal Reserve responded aggressively with seven rate cuts, which slashed the prime lending rate from 5.25% to 2.00% over the 12-month period, consumer confidence slumped and unemployment figures climbed through the latter months. Against this backdrop, the Fund was pulled down by poor stock selection in the energy, consumer discretionary, telecommunication services and financials sectors. Within the energy space, weak stock selection in the oilfield equipment and services hindered return, as did a lack of exposure to the coal industry, which thrived amid climbing commodity markets. In addition, wireless service providers hurt the telecom stake and the Fund's financial holdings struggled with the broader market challenges. Positive contributors hailed from the health care sector, most notably within the providers and services industries. Information technology stocks, including select holdings in the software and computer peripherals groups, further boosted performance. Over the course of the period, the Fund shifted funds out of consumer- and credit-related sectors such as financials, consumer discretionary and telecom services, as well as a move away from the health care providers and services. In turn, it heightened its focus on the materials sector, especially within the chemicals industry, and the industrials group, most notably among commercial services and supply firms. It also padded its weighting in the utilities and information technology 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------- ------ ------- -------- Institutional -11.24% 7.74% 4.22% $15,114 - -------------------------------------------------------------------------------- Class A Shares -15.86% 6.39% 3.40% $13,968 - -------------------------------------------------------------------------------- Class B Shares -15.87 6.39% 3.12% $13,591 - -------------------------------------------------------------------------------- Class C Shares -11.88% 6.74% 3.21% $13,721 - -------------------------------------------------------------------------------- Russell Midcap(R) Growth Index(1) -7.92% 10.67% 5.69% $17,398 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.11% (Institutional Shares), 1.36% (Class A) and 2.11% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- American Tower Corp., Class A .......................................... 1.89% Stericycle, Inc. ....................................................... 1.84% Mettler Toledo International, Inc. ..................................... 1.80% Joy Global, Inc. ....................................................... 1.75% Activision Blizzard, Inc. .............................................. 1.63% CF Industries Holdings, Inc. ........................................... 1.61% Corrections Corp. of America ........................................... 1.60% PerkinElmer, Inc. ...................................................... 1.57% Burger King Holdings, Inc. ............................................. 1.56% Herbalife, Ltd. ........................................................ 1.55% * Long-term securities. + Portfolio composition is subject to change. 6 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Mid Cap Growth Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Mid Cap Growth Russell MidCap(R) (Institutional Shares) Growth Index ---------------------- ----------------- 7/31/98 $ 10,000 $ 10,000 $ 8,894 $ 8,704 12/98 $ 10,578 $ 11,008 $ 10,096 $ 11,384 $ 11,223 $ 12,570 $ 10,056 $ 11,940 12/99 $ 12,383 $ 16,654 $ 14,018 $ 20,172 $ 13,514 $ 18,678 $ 14,631 $ 19,149 12/00 $ 13,241 $ 14,697 $ 11,001 $ 11,010 $ 13,056 $ 12,792 $ 10,094 $ 9,236 12/01 $ 12,409 $ 11,735 $ 12,123 $ 11,528 $ 9,889 $ 9,423 $ 8,105 $ 7,804 12/02 $ 8,633 $ 8,519 $ 8,408 $ 8,518 $ 10,010 $ 10,116 $ 10,539 $ 10,840 12/03 $ 11,872 $ 12,158 $ 12,201 $ 12,746 $ 12,132 $ 12,880 $ 11,422 $ 12,322 12/04 $ 12,859 $ 14,040 $ 12,418 $ 13,806 $ 13,240 $ 14,279 $ 13,968 $ 15,215 12/05 $ 14,312 $ 15,739 $ 16,049 $ 16,936 $ 15,145 $ 16,141 $ 15,023 $ 16,285 12/06 $ 15,747 $ 17,416 $ 16,680 $ 18,105 $ 17,830 $ 19,326 $ 17,840 $ 19,741 12/07 $ 17,074 $ 19,406 $ 15,340 $ 17,281 $ 15,692 $ 18,084 7/31/08 $ 15,114 $ 17,398 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell Midcap(R) Growth Index. The Russell Midcap(R) Growth Index measures the performance of those Russell midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000(R) Growth Index. The Russell Midcap(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 7 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Quality Growth Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Quality Growth Fund (Institutional) gained 2.85% on a net of fee basis, significantly outperforming its benchmarks, the Russell 1000(R) Growth Index, which declined 6.29%. The financial credit crisis dominated the period, contributing to market volatility and unsettling investors worldwide. Stocks reacted to the disruption in the credit markets by moving sharply lower starting in October 2007. Inflation anxieties stemming in part from soaring oil and commodity prices extended the fall through the second half of the period, along with economic concerns stirred in part by the deepening of the housing market tumble. Favorable stock selection within the materials and energy sectors - which both benefited from spiking commodity markets - keyed the Fund's performance. Within the materials sector, agriculture-related names were standouts as higher grain prices prompted farmers to seek improved crop yields. As stock prices steadily climbed, however, the Fund booked some profits and directed the proceeds into metal miners and processors. In the energy space, a mix of services and equipment companies and exploration and production firms provided a lift. The Fund also benefited from effective stock selection in two of the worst performing sectors in the primary benchmark - financials and consumer discretionary. Select investment companies and fast food restaurants aided returns, while an aversion to banks and retailers helped on a relative basis as well. In contrast, stock selection within the consumer staples sector diminished returns, and the Fund finished the period with an underweight position, relative to the primary benchmark, in the sector. At the period's end, international economic prospects appeared modestly better than those of the U.S., especially among emerging markets. As a growing percentage of U.S. corporate profits are attributed to overseas business, we believe the global component is an increasingly important factor in assessing the growth potential of the Fund's possible investments. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional 2.79% 6.46% 2.66% $13,001 - -------------------------------------------------------------------------------- Class A Shares -2.62% 5.11% 1.88% $12,048 - -------------------------------------------------------------------------------- Class B Shares -2.61% 5.09% 1.59% $11,712 - -------------------------------------------------------------------------------- Class C Shares 1.70% 5.39% 1.68% $11,818 - -------------------------------------------------------------------------------- Russell 1000(R) Growth Index(1) -6.29% 6.39% 0.83% $10,862 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.11% (Institutional Shares), 1.36% (Class A) and 2.11% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Microsoft Corp. ........................................................ 2.66% International Business Machines Corp. .................................. 2.39% Northern Trust Corp. ................................................... 2.12% McDonald's Corp. ....................................................... 2.06% Baxter International, Inc. ............................................. 1.97% Gilead Sciences, Inc. .................................................. 1.96% Praxair, Inc. .......................................................... 1.95% Monsanto Co. ........................................................... 1.94% Kellogg Co. ............................................................ 1.92% Qualcomm, Inc. ......................................................... 1.91% * Long-term securities. + Portfolio composition is subject to change. 8 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Quality Growth Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Quality Growth Russell 1000(R) (Institutional Shares) Growth Index ---------------------- --------------- 7/31/98 $ 10,000 $ 10,000 $ 9,077 $ 9,152 12/98 $ 11,638 $ 11,599 $ 12,039 $ 12,336 $ 12,783 $ 12,811 $ 12,408 $ 12,342 12/99 $ 14,415 $ 15,445 $ 15,457 $ 16,546 $ 15,184 $ 16,099 $ 14,905 $ 15,233 12/00 $ 13,865 $ 11,982 $ 11,528 $ 9,478 $ 12,182 $ 10,276 $ 10,026 $ 8,281 12/01 $ 11,957 $ 9,535 $ 11,643 $ 9,288 $ 9,345 $ 7,554 $ 7,616 $ 6,417 12/02 $ 8,070 $ 6,876 $ 7,796 $ 6,803 $ 9,032 $ 7,776 $ 9,500 $ 8,080 12/03 $ 10,602 $ 8,922 $ 10,636 $ 8,992 $ 10,495 $ 9,166 $ 9,674 $ 8,687 12/04 $ 10,509 $ 9,484 $ 9,987 $ 9,096 $ 10,369 $ 9,320 $ 10,824 $ 9,694 12/05 $ 11,166 $ 9,983 $ 11,588 $ 10,292 $ 10,938 $ 9,890 $ 11,172 $ 10,279 12/06 $ 11,718 $ 10,889 $ 11,863 $ 11,018 $ 12,799 $ 11,773 $ 13,762 $ 12,269 12/07 $ 14,230 $ 12,175 $ 12,825 $ 10,936 $ 13,150 $ 11,072 7/31/08 $ 13,001 $ 10,862 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Growth Index. The Russell 1000(R) Growth Index measures the performance of 1,000 securities found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The Russell 1000(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 9 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Dividend Growth Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Dividend Growth Fund (Institutional) declined 5.69% on a net of fee basis, compared to its primary benchmark, the Standard & Poor's 500 Index, which dropped 11.09%. As economic concerns gained traction, due in part to soaring oil prices and rallies in other commodity markets, the equity market responded accordingly. The financials sector, facing lengthy credit market issues and riddled with deteriorating fundamentals, tumbled. Meanwhile, the energy and materials sectors, bolstered by rising energy and raw materials prices, advanced, joined by the defense-oriented consumer staples sector. Against this negative backdrop, strong stock selection in the financials sector aided the Fund's outperformance of the benchmark. Along with effective investments in wealth management, discount brokerage and capital market firms, the Fund also avoided thrifts and other home lenders, which suffered as the housing market tumbled. Health care sector stocks also contributed positively to performance relative to the benchmark, bolstered by selections among biotechnology and medical equipment outfits and an underweight position, relative to the primary benchmark, in pharmaceutical companies. Additionally, an underweight stake in the consumer discretionary sector, keyed by an aversion to automotive suppliers and airlines, enhanced returns relative to the primary benchmark. Detractors from performance included a modestly underweight position in the energy sector and stock selections in the information technology sector. Midway through the period, the Fund booked some profits in the energy sector, which appeared vulnerable following a considerable runup, and steered some of the proceeds into what we perceived to be attractive opportunities in the health care and technology sectors. The decision proved beneficial as health care and technology generally remained immune to the troubles afflicting the financial sector and offered exposure to better-positioned international economies. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Because the Fund may invest in a single industry, its shares do not represent a complete investment program. As a non-diversified Fund, the value of the shares may fluctuate more than shares invested in a broader range of industries and companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------- ------ ------- -------- Institutional -5.69% 6.42% -1.99% $ 8,181 - -------------------------------------------------------------------------------- Class A Shares -10.64% 5.13% -2.71% $ 7,599 - -------------------------------------------------------------------------------- Class B Shares -11.30% 5.06% -2.90% $ 7,452 - -------------------------------------------------------------------------------- Class C Shares -6.83% 5.36% -2.92% $ 7,434 - -------------------------------------------------------------------------------- S&P 500 Index(1) -11.09% 7.03% 2.91% $ 13,317 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.76% (Institutional Shares), 2.00% (Class A) and 2.74% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Exxon Mobil Corp. ..................................................... 3.25% United Technologies Corp. ............................................. 2.28% Emerson Electric Co. .................................................. 2.27% US Bancorp ............................................................ 2.00% Procter & Gamble Co. .................................................. 1.94% Qualcomm, Inc. ........................................................ 1.85% Becton Dickinson & Co. ................................................ 1.82% General Dynamics Corp. ................................................ 1.77% Wells Fargo & Co. ..................................................... 1.73% Phillip Morris International Inc. ..................................... 1.57% * Long-term securities. + Portfolio composition is subject to change. 10 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Dividend Growth Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Dividend Growth (Institutional Shares) S&P 500 Index ---------------------- -------------- 7/31/98 $ 10,000 $ 10,000 $ 8,974 $ 9,102 12/98 $ 11,211 $ 11,041 $ 11,636 $ 11,591 $ 11,945 $ 12,407 $ 11,331 $ 11,634 12/99 $ 12,516 $ 13,365 $ 12,963 $ 13,669 $ 12,503 $ 13,305 $ 11,937 $ 13,177 12/00 $ 10,043 $ 12,146 $ 8,170 $ 10,706 $ 8,533 $ 11,332 $ 7,226 $ 9,669 12/01 $ 7,853 $ 10,702 $ 7,639 $ 10,732 $ 6,498 $ 9,294 $ 5,432 $ 7,688 12/02 $ 5,521 $ 8,337 $ 5,310 $ 8,075 $ 5,877 $ 9,318 $ 5,894 $ 9,564 12/03 $ 6,646 $ 10,729 $ 6,837 $ 10,910 $ 6,847 $ 11,098 $ 6,293 $ 10,890 12/04 $ 6,946 $ 11,896 $ 6,554 $ 11,640 $ 6,709 $ 11,800 $ 7,042 $ 12,225 12/05 $ 7,256 $ 12,481 $ 7,503 $ 13,007 $ 7,395 $ 12,819 $ 7,793 $ 13,546 12/06 $ 8,201 $ 14,453 $ 8,280 $ 14,545 $ 8,835 $ 15,458 $ 9,299 $ 15,772 12/07 $ 9,174 $ 15,247 $ 8,524 $ 13,807 $ 8,012 $ 13,430 7/31/08 $ 8,181 $ 13,317 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the S&P 500 Index. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The S&P 500 Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 11 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Micro Cap Value Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2007, the Fifth Third Micro Cap Value Fund (Institutional) declined 12.23% on a net of fee basis, compared to its benchmarks, the Russell Microcap(R) Value Index, which fell 17.25%, and the Russell 2000(R) Value Index, which retreated 9.95%. Despite seven rate cuts from the Federal Reserve, which slashed its key lending rate from 5.25% to 2.00%, the U.S. economy decelerated during the period. Furthermore, with the housing industry stumbling, credit market problems continuing and consumer confidence waning, the near-term outlook remained uncertain at best. The challenging conditions affected the majority of the sectors of the economy, with energy the only consistent gainer as oil prices spiked. Within the Fund, good stock selection in the beleaguered financials sector, most notably in the insurance industry - where a number of buyouts boosted Fund performance - and among capital markets firms, helped relative returns. Additionally, semiconductor investments aided the Fund's information technology sector exposure and stakes in specialty chemical companies lifted its materials sector performance, along with an avoidance of manufacturers of commodity chemicals. Stock selection in the energy sector detracted from returns, as did poor performers from the health care service and providers industry. As the broader economic landscape became more problematic, the Fund trimmed its exposure to the smallest companies within the micro cap universe - those with market capitalizations between $50 million and $100 million - which tend to be more vulnerable to slowing economies. Alternatively, the Fund focused on larger micro cap stocks - those in the $400 million to $500 million range. At a sector level, shifts included a move from an underweight position, relative to the benchmark, to an overweight stake in the health care sector, and a reduction in the size of the overweight position in the industrials sector. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Micro capitalization funds typically carry additional risk since micro-cap companies generally have a higher risk of failure. Historically, micro-cap stocks have experienced a greater degree of market volatility than large company stocks on average. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------- ------ ------- -------- Institutional -12.23% 8.77% 11.79% $ 30,487 - -------------------------------------------------------------------------------- Class A Shares -16.74% 7.40% 11.02% $ 28,458 - -------------------------------------------------------------------------------- Class B Shares -15.70% 7.78% 10.88% $ 28,087 - -------------------------------------------------------------------------------- Class C Shares -12.95% 7.95% 11.07% $ 28,572 - -------------------------------------------------------------------------------- Russell 2000(R) Value Index(1) -9.95% 10.04% 8.89% $ 23,440 - -------------------------------------------------------------------------------- Russell Microcap(R) Value Index(1) -17.25% 8.15% 11.69%(3) $ 24,445 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.82% (Institutional Shares), 2.06% (Class A) and 2.81% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Overhill Farms, Inc. .................................................. 1.45% Bluegreen Corp. ....................................................... 1.25% Ness Technologies, Inc. ............................................... 1.23% Hersha Hospitality Trust, A Shares .................................... 1.14% Stealthgas, Inc. ...................................................... 1.12% Jo-Ann Stores, Inc. ................................................... 1.10% Ciber, Inc. ........................................................... 1.09% Semitool, Inc. ........................................................ 1.08% Monro Muffler, Inc. ................................................... 1.08% Berkshire Hills Bancorp, Inc. ......................................... 1.04% * Long-term securities. + Portfolio composition is subject to change. 12 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Micro Cap Value Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Micro Cap Value Russell 2000(R) Russell Microcap(R) (Institutional Shares) Value Index Value Index ---------------------- --------------- ------------------- 7/31/98 $ 10,000 $ 10,000 $ 8,551 $ 8,910 12/98 $ 9,911 $ 9,719 $ 10,425 $ 8,777 $ 12,646 $ 10,230 $ 11,535 $ 9,429 12/99 $ 12,040 $ 9,574 $ 13,270 $ 9,940 $ 12,625 $ 10,134 $ 10,000 $ 12,819 $ 10,878 $ 10,391 12/00 $ 11,891 $ 11,759 $ 10,441 $ 12,967 $ 11,874 $ 11,090 $ 15,148 $ 13,255 $ 13,347 $ 12,894 $ 11,488 $ 11,372 12/01 $ 14,615 $ 13,408 $ 13,315 $ 16,142 $ 14,693 $ 14,540 $ 16,166 $ 14,381 $ 15,070 $ 12,821 $ 11,319 $ 11,767 12/02 $ 14,651 $ 11,876 $ 12,544 $ 14,480 $ 11,273 $ 12,228 $ 19,022 $ 13,835 $ 15,395 $ 21,293 $ 14,904 $ 17,433 12/03 $ 24,819 $ 17,343 $ 20,506 $ 26,984 $ 18,543 $ 22,202 $ 27,680 $ 18,700 $ 22,168 $ 26,984 $ 18,728 $ 21,669 12/04 $ 30,586 $ 21,201 $ 24,798 $ 29,430 $ 20,358 $ 23,505 $ 28,219 $ 21,391 $ 24,236 $ 30,063 $ 22,052 $ 25,299 12/05 $ 30,491 $ 22,199 $ 25,577 $ 33,708 $ 25,197 $ 29,130 $ 32,096 $ 24,516 $ 28,021 $ 31,375 $ 25,141 $ 28,290 12/06 $ 34,390 $ 27,411 $ 31,154 $ 35,627 $ 27,812 $ 31,525 $ 36,963 $ 28,452 $ 32,162 $ 34,588 $ 26,671 $ 29,783 12/07 $ 31,060 $ 24,731 $ 27,065 $ 29,642 $ 23,117 $ 25,072 $ 28,617 $ 22,297 $ 23,134 7/31/08 $ 30,487 $ 23,440 $ 24,445 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 2000(R) Value Index and the Russell Microcap(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. The Russell Microcap(R) Value Index measures the performance of those Russell Microcap companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000(R) Value Index and the Russell Microcap(R) Value Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2008. (3) The average annual total return for the Russell Microcap(R) Value Index since its inception. 13 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Small Cap Value Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Small Cap Value Fund (Institutional) declined 3.68% on a net of fee basis, outperforming its benchmark, the Russell 2000(R) Value Index, which declined 9.95%. The U.S. economy generally struggled during the period, bogged down by the troubles in the credit market and increasing inflationary pressures. Consumers generally reacted by reining in spending and directing more of their incomes toward soaring energy costs. Overseas economies generally fared better, although signs of weakness emerged late in the period. Equities experienced considerable volatility during the 12-month period and small cap stocks fared better than other equities during the second half of the period. While negative within the Fund, traditionally defensive sectors such as consumer staples and health care led performance, relative to the benchmark, through the first five months, while financials, consumer discretionary and industrials stocks provided the best relative returns through the final seven months. Looking at the entire 12-month period, despite negative performance the Fund benefited from an underweight position, relative to the benchmark, in the industrials sector and benefited from a lack of exposure to the beleaguered media and auto supplier industries. Within the financials sector, by focusing on banks that maintained conservative lending practices the Fund appeared to have sidestepped many of the current credit-related issues facing other financial institutions, also aiding performance relative to the benchmark. In addition, investments in the resurgent U.S. trucking industry and in electrical equipment manufacturers with global customers lifted the Fund's industrials sector exposure. On the downside, exposure in the health care sector, where poor stock selection outweighed an overweight stake, hindered performance. So did an aversion to red-hot fertilizer stocks, which helped prop up the materials sector but featured valuations that far exceeded the Fund's targets. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Small capitalization funds typically carry additional risk since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value(2) --------- ------ ------ --------- -------- Institutional 4/1/03 -3.68% 10.20% 12.78% $ 18,996 - -------------------------------------------------------------------------------- Class A Shares 4/1/03 -8.76% 8.80% 11.41% $ 17,795 - -------------------------------------------------------------------------------- Class B Shares 4/1/03 -8.85% 8.84% 11.54% $ 17,905 - -------------------------------------------------------------------------------- Class C Shares 4/1/03 -4.69% 9.07% 11.63% $ 17,979 - -------------------------------------------------------------------------------- Russell 2000(R) Value Index(1) -9.95% 10.04% 14.71% $ 20,793 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.24% (Institutional Shares), 1.50% (Class A) and 2.25% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Iowa Telecommunications Services, Inc. ................................ 1.87% Sybase, Inc. .......................................................... 1.78% UMB Financial Corp. ................................................... 1.73% Kindred Healthcare, Inc. .............................................. 1.62% Ferro Corp. ........................................................... 1.58% Platinum Underwriters Holdings, Ltd. .................................. 1.57% Trinity Industries, Inc. .............................................. 1.55% EnPro Industries, Inc. ................................................ 1.55% Vectren Corp. ......................................................... 1.45% Cleco Corp. ........................................................... 1.44% * Long-term securities. + Portfolio composition is subject to change. 14 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Small Cap Value Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Small Cap Value Russell 2000(R) (Institutional Shares) Value Index ---------------------- --------------- 4/1/03 $ 10,000 $ 10,000 $ 11,240 $ 12,272 $ 11,860 $ 13,220 12/03 $ 13,841 $ 15,384 $ 14,837 $ 16,449 $ 14,732 $ 16,588 $ 14,346 $ 16,613 12/04 $ 15,471 $ 18,807 $ 16,041 $ 18,058 $ 16,520 $ 18,975 $ 16,741 $ 19,562 12/05 $ 17,326 $ 19,692 $ 18,519 $ 22,351 $ 18,281 $ 21,747 $ 18,460 $ 22,302 12/06 $ 19,692 $ 24,315 $ 20,421 $ 24,671 $ 21,092 $ 25,238 $ 20,081 $ 23,659 12/07 $ 18,851 $ 21,938 $ 17,859 $ 20,506 $ 18,059 $ 19,779 7/31/08 $ 18,996 $ 20,793 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 2000(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios. The Russell 2000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. 15 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- All Cap Value Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third All Cap Value Fund (Institutional) retreated 17.47% on a net of fee basis, compared to its benchmarks, the Russell 3000(R) Value Index, which declined 14.75%, and the Russell Midcap(R) Value Index, which slid 13.20%. Economic woes that appeared through the first part of the period blossomed during the second half as the U.S. growth rate slowed and consumer confidence wilted. Surging oil prices, plummeting housing values and extended challenges in the credit markets all factored into the deteriorating conditions. Interestingly, among value stocks, small cap names - which tended to benefit from an early 2008 bounce off a dreary 2007 - outperformed larger and mid cap holdings over the 12-month period. Although the Fund trimmed its average weighted market cap to $61 billion - considerably smaller than the Russell 3000(R) Value Index's $94 billion - an underweight stake in small cap names diminished performance relative to the primary benchmark. At the period's end, the Fund was also modestly underexposed to the large cap space and held an overweight position in mid cap stocks relative to the primary benchmark. From a sector standpoint, positions in the consumer staples and energy sectors hindered returns during the 12-month period. More specifically, inflationary worries hit the bottom lines of the Fund's food retailer and beverage bottling stocks within the staples sector. In the energy space, modest exposure to oilfield equipment and services firms with international operations hurt, as did holdings in the oil refinery industry, which saw margins squeezed by oil's price spike. Solid stock selection within two sectors that otherwise struggled - consumer discretionary and financials - contributed positively to Fund returns. Exposure to companies with international exposure lifted the consumer discretionary stake, as well as timely investments in discount retailers and auto parts suppliers, which enjoyed a mid-period resurgence. The Fund's financials sector performance stemmed largely from minimal exposure to companies tainted by the subprime mortgage mess and discount brokerage stocks. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Small capitalization funds typically carry additional risk since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------- ------ ------- --------- Institutional -17.47% 9.24% 8.21% $ 22,022 - -------------------------------------------------------------------------------- Class A Shares -21.76% 7.86% 7.38% $ 20,383 - -------------------------------------------------------------------------------- Class B Shares -21.71% 7.88% 7.40% $ 20,415 - -------------------------------------------------------------------------------- Class C Shares -18.25% 8.15% 7.39% $ 20,403 - -------------------------------------------------------------------------------- Russell 3000(R) Value Index(1) -14.75% 8.63% 5.32% $ 16,791 - -------------------------------------------------------------------------------- Russell Midcap(R) Value Index(1) -13.20% 12.05% 8.88% $ 23,425 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.34% (Institutional Shares), 1.59% (Class A) and 2.34% (Classes B & C). The total return figures for Institutional Shares reflect a sales charge of 0.0%. The total return figures for A Shares 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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- JPMorgan Chase & Co. .................................................. 2.18% ConocoPhillips ........................................................ 2.09% Marathon Oil Corp. .................................................... 2.06% Exxon Mobil Corp. ..................................................... 1.98% Bank of America Corp. ................................................. 1.74% Goldman Sachs Group, Inc. (The) ....................................... 1.74% Nabors Industries, Ltd. ............................................... 1.68% Amgen, Inc. ........................................................... 1.61% Chevron Corp. ......................................................... 1.60% International Business Machines Corp. ................................. 1.53% * Long-term securities. + Portfolio composition is subject to change. 16 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- All Cap Value Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] All Cap Value Russell 3000(R) Russell MidCap(R) (Institutional Shares) Value Index Value Index ---------------------- --------------- ----------------- 7/31/98 $ 10,000 $ 10,000 $ 10,000 $ 8,464 $ 8,993 $ 9,095 12/98 $ 9,431 $ 10,429 $ 10,329 $ 9,490 $ 10,487 $ 10,008 $ 11,268 $ 11,709 $ 11,127 $ 10,249 $ 10,579 $ 9,943 12/99 $ 10,664 $ 11,123 $ 10,318 $ 12,019 $ 11,202 $ 10,422 $ 11,922 $ 10,727 $ 10,247 $ 12,526 $ 11,568 $ 11,236 12/00 $ 13,198 $ 12,017 $ 12,297 $ 13,021 $ 11,368 $ 11,863 $ 13,800 $ 11,976 $ 12,698 $ 11,996 $ 10,645 $ 11,232 12/01 $ 14,246 $ 11,496 $ 12,583 $ 14,217 $ 12,012 $ 13,577 $ 13,033 $ 11,048 $ 12,942 $ 10,986 $ 8,953 $ 10,619 12/02 $ 11,991 $ 9,751 $ 11,369 $ 11,217 $ 9,275 $ 10,908 $ 13,822 $ 10,912 $ 12,860 $ 14,563 $ 11,182 $ 13,624 12/03 $ 16,867 $ 12,787 $ 15,697 $ 17,599 $ 13,213 $ 16,536 $ 17,647 $ 13,329 $ 16,823 $ 17,411 $ 13,518 $ 17,114 12/04 $ 19,465 $ 14,954 $ 19,418 $ 19,392 $ 14,914 $ 19,569 $ 19,796 $ 15,207 $ 20,489 $ 20,684 $ 15,786 $ 21,586 12/05 $ 20,959 $ 15,978 $ 21,874 $ 22,697 $ 17,032 $ 23,541 $ 22,385 $ 17,080 $ 23,410 $ 23,586 $ 18,084 $ 24,236 12/06 $ 25,277 $ 19,548 $ 26,296 $ 25,998 $ 19,795 $ 27,574 $ 27,839 $ 20,723 $ 28,581 $ 27,307 $ 20,567 $ 27,567 12/07 $ 25,871 $ 19,350 $ 25,922 $ 23,269 $ 17,696 $ 23,682 $ 22,059 $ 16,782 $ 23,697 7/31/08 $ 22,022 $ 16,791 $ 23,425 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 3000(R) Value Index and the Russell Midcap(R) Value Index. The Russell 3000(R) Value Index measures the performance of those companies in the Russell 3000(R) Index with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap(R) Value Index measures the performance of those Russell mid cap companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000(R) Value and the Russell Midcap(R) Value Indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 17 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Disciplined Large Cap Value Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Disciplined Large Cap Value Fund (Institutional) declined 13.52% on a net of fee basis, outperforming its benchmark, the Russell 1000(R) Value Index, which dropped 15.15%. The persistent credit crisis weighed on the broader economy during the period, especially as soaring foreclosure rates permeated the housing industry, the unemployment rate climbed and consumer confidence faltered. Although the Federal Reserve reduced its key lending rate from 5.25% to 2.00% during the 12-month period, conditions proved challenging at the sector, industry and company level. From a style standpoint, growth stocks generally outperformed value stocks during the period, while smaller capitalization indices outperformed larger capitalization indices. Not surprisingly, the leading sectors within the Fund's benchmark were fairly defensive: energy, utilities and consumer staples. The poorest performers were generally cyclical in nature: financials, consumer discretionary, telecommunications services and information technology. While negative within the Fund, outperformance of the benchmark stemmed primarily from solid stock selection within the financials, consumer discretionary, information technology and telecommunication services sectors. Furthermore, an underweight stake, relative to the benchmark, in the troubled financials group helped relative returns, along with an overweight position in the surging energy sector. More broadly, the Fund's cautious posturing with respect to risk proved advantageous relative to the benchmark, as it was less exposed to highly leveraged companies, companies with highly variable earnings and those with more volatile trading profiles. Detractors from performance included positions in the industrials and materials sectors, as well as an underweight stake in the utilities sector, which advanced. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------- ------ ------- -------- Institutional -13.52% 8.41% 4.51% $ 15,538 - -------------------------------------------------------------------------------- Class A Shares -18.01% 7.05% 3.70% $ 14,382 - -------------------------------------------------------------------------------- Class B Shares -18.39% 7.04% 3.53% $ 14,153 - -------------------------------------------------------------------------------- Class C Shares -14.40% 7.34% 3.50% $ 14,113 - -------------------------------------------------------------------------------- Russell 1000(R) Value Index(1) -15.15% 8.52% 5.06% $ 16,387 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.08% (Institutional Shares), 1.33% (Class A) and 2.08% (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 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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- ConocoPhillips ........................................................ 3.59% Chevron Corp. ......................................................... 3.42% MetLife, Inc. ......................................................... 2.99% Exxon Mobil Corp. ..................................................... 2.92% Kraft Foods, Inc., Class A ............................................ 2.84% Marathon Oil Corp. .................................................... 2.83% Bank of America Corp. ................................................. 2.81% Amgen, Inc. ........................................................... 2.57% Schering-Plough Corp. ................................................. 2.45% Time Warner, Inc. ..................................................... 2.45% * Long-term securities. + Portfolio composition is subject to change. 18 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Disciplined Large Cap Value Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Disciplined Large Cap Value Russell 1000(R) (Institutional Shares) Value Index --------------------------- --------------- 7/31/98 $ 10,000 $ 10,000 $ 9,589 $ 9,000 12/98 $ 10,959 $ 10,495 $ 10,497 $ 10,645 $ 11,300 $ 11,846 $ 10,013 $ 10,685 12/99 $ 10,443 $ 11,266 $ 9,737 $ 11,320 $ 10,386 $ 10,789 $ 11,149 $ 11,638 12/00 $ 11,774 $ 12,056 $ 10,509 $ 11,350 $ 10,743 $ 11,904 $ 9,765 $ 10,601 12/01 $ 10,320 $ 11,382 $ 10,492 $ 11,848 $ 9,462 $ 10,839 $ 8,150 $ 8,804 12/02 $ 8,904 $ 9,615 $ 8,433 $ 9,148 $ 10,042 $ 10,728 $ 10,363 $ 10,949 12/03 $ 11,944 $ 12,503 $ 12,288 $ 12,882 $ 12,588 $ 12,995 $ 12,689 $ 13,196 12/04 $ 13,583 $ 14,565 $ 13,637 $ 14,578 $ 13,794 $ 14,822 $ 14,499 $ 15,398 12/05 $ 14,396 $ 15,593 $ 15,240 $ 16,518 $ 15,445 $ 16,615 $ 16,330 $ 17,649 12/06 $ 17,423 $ 19,061 $ 17,625 $ 19,298 $ 18,666 $ 20,248 $ 18,659 $ 20,199 12/07 $ 17,699 $ 19,028 $ 16,406 $ 17,369 $ 15,565 $ 16,446 7/31/08 $ 15,538 $ 16,387 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Value Index. The Russell 1000(R) Value Index measures the performance of 1,000 securities found in the Russell universe with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earning ratios, higher dividend yields and lower forecasted growth values. The Russell 1000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 19 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Structured Large Cap Plus Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Structured Large Cap Plus Fund (Institutional) declined 12.31% on a net of fee basis, trailing its benchmarks, the Standard & Poor's 500 Index, which retreated 11.09%, and the Russell 1000(R) Index, which dropped 10.62%. Contending with a weakening U.S. economy, collapsing housing industry and deteriorating credit market, equities struggled throughout the period. Soaring oil prices and rising commodity prices added generally to inflationary pressures, which further spooked investors. Meanwhile, the Federal Reserve, cut its prime lending rate from 5.25% to 2.00% over the 12-month span during the period. The Fund's quantitative approach struggled for much of the period as stock market leadership was very narrow and generally concentrated in companies with considerable exposure to emerging markets and commodity prices. The Fund generally maintained underweight positions, relative to the benchmark, in these stocks as they generally experienced high price volatility and had high capital expenditure levels - characteristics that the market has historically punished. Meanwhile, sentiment factors influenced the markets to degrees not seen since the Internet bubble and the underperformance of valuation factors was of historic proportions. Through the final two months of the period, however, sentiment factors reverted to more traditional patterns and two other factor groups, earnings quality and capital use, produced positive returns. This enabled the Fund to recoup a significant portion of its previous losses during the period. From a sector standpoint, the Fund's overweight position relative to the benchmark in the economically sensitive consumer discretionary sector stocks hindered returns, along with an underweight stake relative to the benchmark in the defensively oriented consumer staples sector. Within the energy sector, underweight stakes relative to the benchmark in the coal and consumable fuels and exploration and production industries also dragged on performance. Positive contributions came from an underweight exposure relative to the benchmark to the sliding financials sector and a modest overweight in the materials sector. Further boosting returns was the Fund's short positioning - shares borrowed and sold with the expectation of a price drop that will allow for replacement shares to be purchased at a lower price. - -------------------------------------------------------------------------------- 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional -12.31% 6.32% 1.70% $11,833 - -------------------------------------------------------------------------------- Class A Shares -17.02% 4.93% 0.91% $10,949 - -------------------------------------------------------------------------------- Class B Shares -17.56% 4.93% 0.67% $10,688 - -------------------------------------------------------------------------------- Class C Shares -13.29% 5.25% 0.67% $10,691 - -------------------------------------------------------------------------------- Russell 1000(R) Index(1) -10.62% 7.55% 3.38% $13,947 - -------------------------------------------------------------------------------- S&P 500 Index(1) -11.09% 7.03% 2.91% $13,317 - -------------------------------------------------------------------------------- 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 as well as dividends on short sales. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.76% (Institutional Shares), 2.01% (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. 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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Exxon Mobil Corp. ...................................................... 3.54% Qualcomm, Inc. ......................................................... 2.07% Microsoft Corp. ........................................................ 1.89% JPMorgan Chase & Co. ................................................... 1.76% Procter & Gamble Co. ................................................... 1.73% Intel Corp. ............................................................ 1.68% AT&T, Inc. ............................................................. 1.65% Gilead Sciences, Inc. .................................................. 1.62% McDonald's Corp. ....................................................... 1.56% ConocoPhillips ......................................................... 1.44% + Portfolio composition is subject to change. 20 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Structured Large Cap Plus Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Structured Large Cap Plus Russell 1000(R) S&P 500 (Institutional Shares) Index Index ------------------------- --------------- -------- 7/31/98 $ 10,000 $ 10,000 $ 10,000 $ 9,161 $ 9,078 $ 9,102 12/98 $ 11,102 $ 11,064 $ 11,041 $ 11,592 $ 11,520 $ 11,591 $ 12,365 $ 12,341 $ 12,407 $ 11,588 $ 11,526 $ 11,634 12/99 $ 13,188 $ 13,378 $ 13,365 $ 13,325 $ 13,962 $ 13,669 $ 12,927 $ 13,482 $ 13,305 $ 12,680 $ 13,579 $ 13,177 12/00 $ 11,704 $ 12,336 $ 12,146 $ 10,310 $ 10,786 $ 10,706 $ 10,845 $ 11,466 $ 11,332 $ 9,307 $ 9,720 $ 9,669 12/01 $ 10,204 $ 10,800 $ 10,702 $ 10,221 $ 10,880 $ 10,732 $ 8,849 $ 9,416 $ 9,294 $ 7,244 $ 7,823 $ 7,688 12/02 $ 7,778 $ 8,461 $ 8,337 $ 7,506 $ 8,213 $ 8,075 $ 8,553 $ 9,505 $ 9,318 $ 8,741 $ 9,790 $ 9,564 12/03 $ 9,809 $ 10,991 $ 10,729 $ 10,050 $ 11,200 $ 10,910 $ 10,145 $ 11,357 $ 11,098 $ 9,915 $ 11,151 $ 10,890 12/04 $ 10,853 $ 12,244 $ 11,896 $ 10,816 $ 12,011 $ 11,640 $ 10,934 $ 12,257 $ 11,800 $ 11,222 $ 12,741 $ 12,225 12/05 $ 11,470 $ 13,011 $ 12,481 $ 12,047 $ 13,596 $ 13,007 $ 11,829 $ 13,370 $ 12,819 $ 12,539 $ 14,046 $ 13,546 12/06 $ 13,382 $ 15,023 $ 14,453 $ 13,525 $ 15,205 $ 14,545 $ 14,202 $ 16,101 $ 15,458 $ 14,003 $ 16,420 $ 15,772 12/07 $ 13,693 $ 15,890 $ 15,247 $ 12,078 $ 14,383 $ 13,807 $ 11,800 $ 14,111 $ 13,430 7/31/08 $ 11,833 $ 13,947 $ 13,317 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Russell 1000(R) Index and the S&P 500 Index. The Russell 1000(R) Index measures the performance of 1,000 largest securities found in the Russell universe. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Russell 1000(R) Index and the S&P 500 Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 21 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Equity Index Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Equity Index Fund (Institutional) dropped 11.27% on a net of fee basis, compared to its benchmark, the S&P 500 Index, which fell 11.09%. 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, 31 Index changes were implemented, including 20 related to merger and acquisition activity, which slowed considerably starting in January 2008. Systemic problems swept through the U.S. credit markets during the period, crippling the mortgage-backed securities industry and severely restricting opportunities in other bond markets. Yet instead of jumping into equities, many investors turned to commodity markets, where prices on oil, grain and raw materials soared, partially reflecting strong global demand. Stock prices suffered as a result, especially as the credit market woes, collapsing housing market and climbing inflationary pressures contributed to a worsening macroeconomic outlook. For the fund the poorest performing sector by far during the period was financials, which suffered the brunt of the fallout from the credit market mess. Highly leveraged institutions tumbled amid dramatic markdowns on all types of debt and the virtual collapse of Wall Street giant Bear Stearns upended the entire financial system. Other top detractors in the portfolio included the telecommunication services and consumer discretionary sectors, which both took hits as consumer confidence fell. Gainers offered modest returns in the portfolio, led by the energy sector, which soared amid spiking prices on oil and natural gas, but gave back a sizable portion of gains in the period's closing weeks. The consumer staples sector lived up to its traditional defensive role and provided a relative lift, as did the materials sector, which benefited from surging grain and raw materials prices. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests substantially all of its assets in common stock of companies that make up the S&P 500 Index. The Advisor attempts to track the performance of the S&P 500 Index to achieve a correlation of 95% between the performance of the Fund and that of the S&P 500 Index without taking into account the Fund's expenses. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional -11.27% 6.80% 2.64% $12,972 - -------------------------------------------------------------------------------- Class A Shares -15.94% 5.45% 1.85% $12,017 - -------------------------------------------------------------------------------- Class B Shares -16.51% 5.41% 1.61% $11,733 - -------------------------------------------------------------------------------- Class C Shares -12.17% 5.74% 1.62% $11,739 - -------------------------------------------------------------------------------- Select Shares -11.32% 6.71% 2.56% $12,874 - -------------------------------------------------------------------------------- Preferred Shares -11.38% 6.63% 2.48% $12,781 - -------------------------------------------------------------------------------- Trust Shares -11.51% 6.53% 2.38% $12,656 - -------------------------------------------------------------------------------- S&P 500 Index(1) -11.09% 7.03% 2.91% $13,317 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.60% (Institutional Shares), 0.85% (Class A), 0.68% (Select Shares), 0.75% (Preferred Shares), 0.85% (Trust shares) and 1.60% (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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Exxon Mobil Corp. ...................................................... 3.47% General Electric Co. ................................................... 2.30% Microsoft Corp. ........................................................ 1.68% Procter & Gamble Co. ................................................... 1.63% Johnson & Johnson ...................................................... 1.57% AT&T, Inc. ............................................................. 1.49% International Business Machines Corp. .................................. 1.44% Chevron Corp. .......................................................... 1.43% Bank of America Corp. .................................................. 1.22% JPMorgan Chase & Co. ................................................... 1.14% * Long-term securities. + Portfolio composition is subject to change. 22 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Equity Index Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Equity Index (Institutional Shares) S&P 500 Index ---------------------- ------------- 7/31/98 $ 10,000 $ 10,000 $ 9,099 $ 9,102 12/98 $ 11,033 $ 11,041 $ 11,577 $ 11,591 $ 12,382 $ 12,407 $ 11,592 $ 11,634 12/99 $ 13,300 $ 13,365 $ 13,595 $ 13,669 $ 13,222 $ 13,305 $ 13,089 $ 13,177 12/00 $ 12,064 $ 12,146 $ 10,624 $ 10,706 $ 11,235 $ 11,332 $ 9,578 $ 9,669 12/01 $ 10,590 $ 10,702 $ 10,609 $ 10,732 $ 9,181 $ 9,294 $ 7,589 $ 7,688 12/02 $ 8,223 $ 8,337 $ 7,961 $ 8,075 $ 9,179 $ 9,318 $ 9,410 $ 9,564 12/03 $ 10,541 $ 10,729 $ 10,712 $ 10,910 $ 10,887 $ 11,098 $ 10,679 $ 10,890 12/04 $ 11,662 $ 11,896 $ 11,406 $ 11,640 $ 11,557 $ 11,800 $ 11,968 $ 12,225 12/05 $ 12,212 $ 12,481 $ 12,725 $ 13,007 $ 12,533 $ 12,819 $ 13,239 $ 13,546 12/06 $ 14,119 $ 14,453 $ 14,203 $ 14,545 $ 15,096 $ 15,458 $ 15,392 $ 15,772 12/07 $ 14,868 $ 15,247 $ 13,453 $ 13,807 $ 13,085 $ 13,430 7/31/08 $ 12,972 $ 13,317 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the S&P 500 Index. The S&P 500 Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The S&P 500 Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 23 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- International Equity Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third International Equity Fund (Institutional) fell 13.56% on a net of fee basis, lagging its benchmark, the MSCI EAFE Index, which declined 12.19%. Financial market woes stemming from the floundering U.S. mortgage market spread elsewhere across the globe during the period. In turn, the credit market troubles exacerbated slowing economic growth rates, while soaring prices of oil, grains and raw materials - due in part to solid demand from robust emerging economies - prompted increased worries over inflation. In general, the rapid growth of developing countries insulated emerging market stocks, which generally have more exposure to commodity markets and generally fared better than equities from established economies. The Fund's strategy changed on November 29, 2007, from a broad approach to a more focused approach driven by quantitative analysis that emphasizes stock selection as the primary driver of investment decisions, with secondary contributions at the country and sector levels. During the transition period, the number of holdings in the Fund was reduced from more than 1,000 stocks to fewer than 225. Despite negative performance, in the first quarter of 2008 stock selection in the financials, industrials and consumer staples sectors aided performance relative to the benchmark, as did holdings in Germany and Switzerland. Detractors included exposure in the consumer discretionary sector, especially among positions the United Kingdom and Australia, as well as stock selection in the utilities sector. Performance suffered, however, in the final four months of the period as dramatic price volatility and gloomy global growth prospects challenged stock selection in the commercial banks and metals and mining industries, as well as in the industrials sector. Select energy and telecommunication services holdings provided a lift relative to the benchmark. Among the four factors that drive stock selection in the quantitative model employed by the Fund - valuation, sentiment, capital use and earnings quality - sentiment thrived for much of the period amid strong momentum swings. The other three generally suffered in the wake of varied market challenges. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- An investment in this Fund entails the special risks of international investing, including currency exchange fluctuation, government regulations, and the potential for political and economic instability. The Fund's share price is expected to be more volatile than that of a U.S.-only fund. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional -13.56% 13.85% 4.59% $15,665 - -------------------------------------------------------------------------------- Class A Shares -18.13% 12.38% 3.84% $14,579 - -------------------------------------------------------------------------------- Class B Shares -18.38% 12.46% 3.58% $14,218 - -------------------------------------------------------------------------------- Class C Shares -14.43% 12.72% 3.60% $14,242 - -------------------------------------------------------------------------------- MSCI EAFE Index(1) -12.19% 15.35% 5.38% $16,889 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.36% (Institutional Shares), 1.60% (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. 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. - -------------------------------------------------------------------------------- Top Ten Equity Holdings as of July 31, 2008* - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- Nestle SA .............................................................. 2.05% BP PLC ................................................................. 1.83% Banco Santander Central Hispano SA ..................................... 1.69% ENI SpA ................................................................ 1.52% Total SA ............................................................... 1.50% AstraZeneca PLC ........................................................ 1.46% ING Groep NV ........................................................... 1.45% France Telecom SA ...................................................... 1.37% Telefonica SA .......................................................... 1.36% BASF SE ................................................................ 1.35% * Long-term securities. + Portfolio composition is subject to change. 24 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- International Equity Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] International Equity (Institutional Shares) MSCI EAFE(R) Index ---------------------- ------------------ 7/31/98 $ 10,000 $ 10,000 $ 8,623 $ 8,493 12/98 $ 9,872 $ 10,243 $ 9,994 $ 10,386 $ 10,198 $ 10,674 $ 10,574 $ 11,140 12/99 $ 12,450 $ 13,010 $ 12,156 $ 12,997 $ 11,746 $ 12,504 $ 10,970 $ 11,493 12/00 $ 10,676 $ 11,167 $ 9,470 $ 9,636 $ 9,418 $ 9,536 $ 8,459 $ 8,201 12/01 $ 8,765 $ 8,772 $ 8,901 $ 8,817 $ 8,786 $ 8,630 $ 7,209 $ 6,927 12/02 $ 7,559 $ 7,374 $ 6,928 $ 6,768 $ 8,042 $ 8,073 $ 8,631 $ 8,729 12/03 $ 10,073 $ 10,219 $ 10,233 $ 10,663 $ 10,383 $ 10,686 $ 10,233 $ 10,656 12/04 $ 11,681 $ 12,289 $ 11,550 $ 12,268 $ 11,419 $ 12,145 $ 12,704 $ 13,405 12/05 $ 13,312 $ 13,952 $ 14,526 $ 15,263 $ 14,401 $ 15,370 $ 14,877 $ 15,973 12/06 $ 16,281 $ 17,627 $ 17,027 $ 18,345 $ 18,472 $ 19,520 $ 19,031 $ 19,945 12/07 $ 18,685 $ 19,596 $ 17,213 $ 17,851 $ 16,369 $ 17,449 7/31/08 $ 15,665 $ 16,889 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifthirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)(R) Index. 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 MSCI EAFE(R) Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2008. 25 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Strategic Income Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Strategic Income Fund (Institutional) declined 8.30% on a net of fee basis, lagging its primary benchmark, the Lehman Brothers U.S. Aggregate Bond Index, which advanced 6.15%, and its secondary benchmark, the Lehman Brothers Intermediate Credit Bond Index, which returned 3.72%. In the wake of what was admittedly an ugly period, it's worth repeating that the Fund's objective is to seek a high level of income consistent with reasonable risk. The Fund's secondary objective is to seek capital appreciation. To that end, the Fund successfully maintained its income payment levels during the 12-month span, despite significant downturns in many of its holdings. By far, the poorest performing assets in the Fund were preferred stocks, which lagged 10-year Treasury notes by more than 24% during the period. Predominantly issued by financial institutions, preferred stocks were hard hit by the credit crunch and housing market collapse, which prompted many investors to flee bank-related securities. Although the Fund's exposure had been trimmed significantly over the past several years and the remaining issues were generally of high quality, its still-considerable weighting in the group hurt. In general, Treasuries benefited from a flight to quality during the 12-month period and outperformed all other types of investments. As a result, the Fund's corporate bond, real estate investment trusts and dividend-paying common stocks diminished returns relative to the primary benchmark. Positive contributions came from a small stake in foreign-based investments, which received a lift from a weaker U.S. dollar, and select high quality corporate bond holdings in sectors such as consumer staples and industrials. Overall, the Fund is not built to be a core bond strategy, but is designed to be an income-generating Fund, which can be subject to market volatility. To that end, it maintains a minimal exposure to Treasuries while seeking out solid investment opportunities that the Advisor believes offer high potential for benchmark-beating returns over the long haul. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional -8.30% 2.73% 4.89% $16,112 - -------------------------------------------------------------------------------- Class A Shares -13.06% 1.43% 4.05% $14,872 - -------------------------------------------------------------------------------- Class B Shares -13.35% 1.43% 3.95% $14,735 - -------------------------------------------------------------------------------- Class C Shares -9.12% 1.74% 3.91% $14,674 - -------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Bond Index(1) 6.15% 4.55% 5.63% $17,331 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Credit Bond Index(1) 3.72% 3.84% 5.56% $17,184 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.35% (Institutional Shares), 1.60% (Class A) and 2.35% (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. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] Preferred Stocks 44.00% Investment Companies 22.60% Corporate Bonds 14.80% Foreign Bonds 6.30% Investments in Affiliates 5.70% Mortgage-Backed Securities 5.10% Common Stocks 4.30% U.S. Government Agencies 3.70% Asset-Backed Securities 1.80% + Portfolio composition is subject to change. 26 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Strategic Income Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Lehman Brothers Strategic Income Intermediate Credit Lehman Brothers (Institutional Shares) Bond Index Aggregate Bond Index ---------------------- ------------------- -------------------- 7/31/98 $ 10,000 $ 10,000 $ 10,000 $ 10,020 $ 10,373 $ 10,401 12/98 $ 10,113 $ 10,415 $ 10,436 $ 10,046 $ 10,416 $ 10,384 $ 10,351 $ 10,331 $ 10,293 $ 10,019 $ 10,403 $ 10,363 12/99 $ 9,534 $ 10,432 $ 10,350 $ 9,937 $ 10,561 $ 10,578 $ 10,531 $ 10,714 $ 10,763 $ 10,843 $ 11,057 $ 11,087 12/00 $ 11,110 $ 11,419 $ 11,553 $ 11,715 $ 11,872 $ 11,904 $ 12,103 $ 11,992 $ 11,971 $ 12,308 $ 12,491 $ 12,523 12/01 $ 12,569 $ 12,534 $ 12,529 $ 12,735 $ 12,513 $ 12,540 $ 13,086 $ 12,910 $ 13,004 $ 13,345 $ 13,451 $ 13,600 12/02 $ 13,559 $ 13,805 $ 13,814 $ 13,829 $ 14,116 $ 14,006 $ 14,574 $ 14,683 $ 14,356 $ 14,481 $ 14,701 $ 14,335 12/03 $ 14,959 $ 14,759 $ 14,381 $ 15,522 $ 15,176 $ 14,763 $ 14,800 $ 14,748 $ 14,402 $ 15,525 $ 15,244 $ 14,863 12/04 $ 15,997 $ 15,361 $ 15,004 $ 15,642 $ 15,182 $ 14,932 $ 16,224 $ 15,601 $ 15,382 $ 16,247 $ 15,520 $ 15,278 12/05 $ 16,307 $ 15,580 $ 15,369 $ 16,559 $ 15,497 $ 15,270 $ 16,448 $ 15,506 $ 15,258 $ 17,175 $ 16,075 $ 15,839 12/06 $ 17,654 $ 16,280 $ 16,035 $ 17,924 $ 16,555 $ 16,276 $ 17,749 $ 16,489 $ 16,192 $ 17,771 $ 16,827 $ 16,653 12/07 $ 17,075 $ 17,192 $ 17,152 $ 17,072 $ 17,414 $ 17,524 $ 16,693 $ 17,239 $ 17,345 7/31/08 $ 16,112 $ 17,184 $ 17,331 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Intermediate Credit Bond Index and the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Intermediate Credit Bond Index is generally representative of investment grade corporate bonds with maturities from one to ten years. The Lehman Brothers Aggregate Bond Index is generally representative of the bond market as a whole. The Lehman Brothers Intermediate Credit Bond Index and the Lehman Brothers Aggregate Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The Ending Value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 27 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Aggressive Fund(SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third LifeModel Aggressive Fund (Institutional) declined 9.45% on a net of fee basis, while its benchmark, a blend of the Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index, declined 8.48%. Volatility roiled investors throughout the period, which featured an all-time high for the Standard & Poor's 500 Index, as well as a 20% fall from that peak. Economic growth slowed in the U.S., commodity prices hit record highs and the U.S. housing market continued to implode. Fixed income markets featured a massive flight to quality as an early period aversion to mortgage backed securities spread to asset backed securities, municipal bonds and corporate bonds. Most stock indices posted considerable losses for the 12- month period, but with less exposure to banks forced to write off billions of dollars worth of devalued mortgage-related bonds, small and mid cap stocks generally outperformed large cap equities. International stocks also struggled, although emerging market equities tended to perform somewhat better than those in established economies due to robust demand for raw materials. Within fixed income markets, short-term issues outperformed long- term bonds as the Federal Reserve slashed its key lending rate from 5.25% to 2.00% over the 12-month period. While negative within the Fund, a timely shift in exposure to international stocks aided performance as it benefited from a larger position earlier in the period and a smaller position through the closing months. Conversely, an underweight position, relative to the benchmark, in Treasury securities weighed on the fixed income portion of the Fund. At the period's end, global economies were slowing, commodity prices remained elevated, inflationary pressures kept building and financial strains seemed to continue unabated. Nevertheless, we believe some positive developments exist. For example, preliminary signs of a housing market bottom seemed to have emerged, commodity prices started the third quarter well off recent highs and corporate earnings outside of the financials sector held up relatively well. While we expect that a rebound in economic activity likely remains months away, we believe high quality, large company growth stocks are priced at compelling valuations. Concerns linger, however, over the fixed income market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests in underlying funds, so its investment performance is directly related to the performance of those underlying funds. Before investing, investors should assess the risks associated with and types of investments made by each of the underlying funds in which the Fund invests. Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value(2) --------- ------- ------ --------- -------- Institutional 8/1/02 -9.45% 8.10% 9.05% $16,819 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 -14.26% 6.70% 7.81% $15,706 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 -14.48% 6.71% 7.82% $15,713 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 -10.44% 7.01% 7.94% $15,816 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index(1) -11.94% 6.16% 6.93% $14,954 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index(1) 6.56% 4.10% 4.50% $13,028 - -------------------------------------------------------------------------------- LifeModel Aggressive Target Neutral Asset Class Index Blend(3) -8.48% 7.73% 8.49% $16,315 - -------------------------------------------------------------------------------- LifeModel Aggressive Target Neutral Style Class Index Blend(4) 2.55% 5.64% 5.96% $14,161 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.49% (Institutional Shares), 0.74% (Class A) and 1.49% (Classes B & C). The total return figures for Institutional Shares reflect a sales charge of 0.0%. The total return figures for A Shares 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. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments(1) - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third International Equity Fund 22.20% Fifth Third Structured Large Cap Plus Fund 15.10% Fifth Third Disciplined Large Cap Value Fund 13.10% Fifth Third Quality Growth Fund 12.70% Fifth Third All Cap Value Fund 9.30% Fifth Third Mid Cap Growth Fund 9.00% Fifth Third Total Return Bond Fund 6.10% Fifth Third Small Cap Value Fund 4.90% Fifth Third Small Cap Growth Fund 4.60% Fifth Third Short Term Bond Fund 2.20% Fifth Third High Yield Bond Fund 0.40% Fifth Third Institutional Money Market Fund 0.40% + Portfolio composition is subject to change. 28 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Aggressive Fund(SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Lehman Brothers LifeModel Aggressive LifeModel Aggressive LifeModel Aggressive Dow Jones Wilshire Intermediate Target Neutral Asset Class Target Neutral Style (Institutional Shares) 5000 Index Government/Credit Bond Index Index Blend Class Index Blend ---------------------- ------------------ ---------------------------- -------------------------- ------------------------ 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,070 $ 9,021 $ 10,331 $ 9,177 $ 10,019 12/02 $ 9,798 $ 9,682 $ 10,506 $ 9,844 $ 10,320 $ 9,346 $ 9,344 $ 10,664 $ 9,585 $ 10,362 $ 10,990 $ 10,842 $ 10,954 $ 11,031 $ 10,928 $ 11,562 $ 11,198 $ 10,952 $ 11,400 $ 11,058 12/03 $ 13,136 $ 12,533 $ 10,959 $ 12,672 $ 11,405 $ 13,455 $ 12,811 $ 11,230 $ 13,002 $ 11,689 $ 13,491 $ 12,933 $ 10,946 $ 13,119 $ 11,527 $ 13,062 $ 12,642 $ 11,242 $ 12,944 $ 11,746 12/04 $ 14,267 $ 13,870 $ 11,292 $ 14,150 $ 12,108 $ 14,010 $ 13,505 $ 11,193 $ 13,834 $ 12,024 $ 14,399 $ 13,760 $ 11,471 $ 14,176 $ 12,320 $ 15,038 $ 14,254 $ 11,411 $ 14,668 $ 12,420 12/05 $ 15,344 $ 14,503 $ 11,470 $ 14,982 $ 12,545 $ 16,372 $ 15,228 $ 11,426 $ 15,721 $ 12,699 $ 15,981 $ 14,865 $ 11,450 $ 15,453 $ 12,670 $ 16,488 $ 15,461 $ 11,816 $ 16,103 $ 13,112 12/06 $ 17,511 $ 16,498 $ 11,938 $ 17,178 $ 13,457 $ 17,958 $ 16,658 $ 12,128 $ 17,437 $ 13,690 $ 19,147 $ 17,597 $ 12,110 $ 18,374 $ 13,830 $ 19,460 $ 17,776 $ 12,458 $ 18,665 $ 14,148 12/07 $ 19,124 $ 17,122 $ 12,820 $ 18,203 $ 14,351 $ 17,389 $ 15,416 $ 13,205 $ 16,676 $ 14,308 $ 17,067 $ 15,106 $ 13,003 $ 16,436 $ 14,204 7/31/08 $ 16,819 $ 14,954 $ 13,028 $ 16,315 $ 14,161 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. (3) The LifeModel Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (90%) and the Lehman Brothers Intermediate Government/Credit Bond Index (10%). The LifeModel Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. (4) The LifeModel Aggressive Target Neutral Style Class Index Blend is an index-based baseline style class allocation determined by the Advisor to be optimal under static market and economic conditions. The target neutral style class index blend is a hypothetical blend only and does not represent underlying allocations in the Fund. The Advisor will periodically adjust the baseline style class allocation. 29 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Aggressive Fund(SM) - -------------------------------------------------------------------------------- LifeModel Aggressive Target Neutral Style Class Index Blend Small Cap Growth Index(5) ............................................. 4.5% Small Cap Value Index(6) .............................................. 4.5% International Index(7) ................................................ 18.0% Mid Cap Growth Index(8) ............................................... 9.0% Mid Cap Value Index(9) ................................................ 9.0% Large Cap Growth Index(10) ............................................ 15.5% Large Cap Value Index(11) ............................................. 15.5% Large Cap Core Index(12) .............................................. 14.0% High Yield Bond Index(13) ............................................. 0.5% Total Return Bond Index(14) ........................................... 7.0% Short Term Bond Index(15) ............................................. 2.5% (5) The Small Cap Growth Index represents the Russell 2000(R) Growth Index. The Russell 2000(R) Growth Index measures the performance of those Russell 2000 companies that have higher price-to-book values and higher forecasted growth rates. (6) The Small Cap Value Index represents the Russell 2000(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values. (7) The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE(R) Index is a widely recognized, unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. (8) The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index. The Russell MidCap(R) Growth Index measures the performance of those Russell MidCap companies with higher price-to-book ratios and higher forecasted growth values. (9) The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The Russell MidCap(R) Value Index measures the performance of those Russell MidCap companies with lower price-to-book ratios and lower forecasted growth values. (10) The Large Cap Growth Index represents the Russell 1000(R) Growth Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (11) The Large Cap Value Index represents the Russell 1000(R) Value Index. The Russell 1000(R) Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. (12) The Large Cap Core Index represents the Standard & Poor's 500(R) Index. The Standard & Poor's 500(R) Index is comprised of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. (13) The High Yield Bond Index represents the Merrill Lynch High Yield Master Index. The Merrill Lynch High Yield Master Index tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. (14) The Total Return Bond Index represents the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities with maturities of at least one year. (15) The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond Index tracks the trading of short-term U.S. government securities and short-term domestic investment-grade corporate bonds with maturities between 1 and 2.99 years. 30 This page intentionally left blank. 31 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderately Aggressive Fund(SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third LifeModel Moderately Aggressive Fund (Institutional) declined 7.76% on a net of fee basis, while its benchmark, a blend of the Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index, dropped 5.17%. Volatility roiled investors throughout the period, which featured an all-time high for the Standard & Poor's 500 Index, as well as a 20% fall from that peak. Economic growth slowed in the U.S., commodity prices hit record highs and the U.S. housing market continued to implode. Fixed income markets featured a massive flight to quality as an early period aversion to mortgage backed securities spread to asset backed securities, municipal bonds and corporate bonds. Most stock indices posted considerable losses for the 12-month period, but with less exposure to banks forced to write off billions of dollars worth of devalued mortgage-related bonds, small and mid cap stocks generally outperformed large cap equities. International stocks also struggled, although emerging market equities tended to perform somewhat better than those in established economies due to robust demand for raw materials. Within fixed income markets, short-term issues outperformed long-term bonds as the Federal Reserve slashed its key lending rate from 5.25% to 2.00% over the 12-month period. While negative within the Fund, a timely shift in exposure to international stocks aided performance as it benefited from a larger position earlier in the period and a smaller position through the closing months. Conversely, an underweight position, relative to the benchmark, in Treasury securities weighed on the fixed income portion of the Fund. At the period's end, global economies were slowing, commodity prices remained elevated, inflationary pressures kept building and financial strains seemed to continue unabated. Nevertheless, we believe some positive developments exist. For example, preliminary signs of a housing market bottom seemed to have emerged, commodity prices started the third quarter well off recent highs and corporate earnings outside of the financials sector held up relatively well. While we expect that a rebound in economic activity likely remains months away, we believe high quality, large company growth stocks are priced at compelling valuations. Concerns linger, however, over the fixed income market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests in underlying funds, so its investment performance is directly related to the performance of those underlying funds. Before investing, investors should assess the risks associated with and types of investments made by each of the underlying funds in which the Fund invests. Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value(2) --------- ------- ------ --------- -------- Institutional 8/1/02 -7.76% 6.94% 8.52% $16,333 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 -12.55% 5.59% 7.33% $15,284 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 -12.80% 5.56% 7.34% $15,295 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 -8.60% 5.89% 7.46% $15,401 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index(1) -11.94% 6.16% 6.93% $14,954 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index(1) 6.56% 4.10% 4.50% $13,028 - -------------------------------------------------------------------------------- LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend(3) -5.17% 7.00% 7.72% $15,631 - -------------------------------------------------------------------------------- LifeModel Moderately Aggressive Target Neutral Style Class Index Blend(4) -2.38% 7.39% 7.80% $15,699 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.48% (Institutional Shares), 0.73% (Class A) and 1.48% (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. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Total Return Bond Fund 19.80% Fifth Third International Equity Fund 17.40% Fifth Third Structured Large Cap Plus Fund 12.20% Fifth Third Disciplined Large Cap Value Fund 10.10% Fifth Third Quality Growth Fund 9.80% Fifth Third All Cap Value Fund 7.30% Fifth Third Short Term Bond Fund 7.10% Fifth Third Mid Cap Growth Fund 7.00% Fifth Third Small Cap Value Fund 3.80% Fifth Third Small Cap Growth Fund 3.60% Fifth Third High Yield Bond Fund 1.40% Fifth Third Institutional Money Market Fund 0.40% + Portfolio composition is subject to change. 32 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderately Aggressive Fund(SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] LifeModel Moderately LifeModel Aggressive Moderately Target Aggressive LifeModel Lehman Brothers Neutral Target Moderately Intermediate Asset Neutral Style Aggressive Dow Jones Wilshire Government/Credit Class Class (Institutional Shares) 5000 Index Bond Index Index Blend Index Blend ---------------------- ------------------ ----------------- ----------- ------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,700 $ 9,021 $ 10,331 $ 9,432 $ 9,643 12/02 $ 10,290 $ 9,682 $ 10,506 $ 10,009 $ 10,110 $ 10,011 $ 9,344 $ 10,664 $ 9,838 $ 9,983 $ 11,406 $ 10,842 $ 10,954 $ 11,044 $ 10,978 $ 11,866 $ 11,198 $ 10,952 $ 11,334 $ 11,280 12/03 $ 13,125 $ 12,533 $ 10,959 $ 12,312 $ 12,075 $ 13,421 $ 12,811 $ 11,230 $ 12,630 $ 12,419 $ 13,385 $ 12,933 $ 10,946 $ 12,647 $ 12,365 $ 13,117 $ 12,642 $ 11,242 $ 12,592 $ 12,443 12/04 $ 14,086 $ 13,870 $ 11,292 $ 13,513 $ 13,237 $ 13,871 $ 13,505 $ 11,193 $ 13,252 $ 13,098 $ 14,234 $ 13,760 $ 11,471 $ 13,583 $ 13,401 $ 14,710 $ 14,254 $ 11,411 $ 13,934 $ 13,754 12/05 $ 14,956 $ 14,503 $ 11,470 $ 14,184 $ 13,969 $ 15,757 $ 15,228 $ 11,426 $ 14,714 $ 14,441 $ 15,475 $ 14,865 $ 11,450 $ 14,526 $ 14,334 $ 15,981 $ 15,461 $ 11,816 $ 15,105 $ 14,857 12/06 $ 16,827 $ 16,498 $ 11,938 $ 15,922 $ 15,542 $ 17,222 $ 16,658 $ 12,128 $ 16,166 $ 15,852 $ 18,120 $ 17,597 $ 12,110 $ 16,836 $ 16,300 $ 18,422 $ 17,776 $ 12,458 $ 17,154 $ 16,597 12/07 $ 18,165 $ 17,122 $ 12,820 $ 16,936 $ 16,546 $ 16,857 $ 15,416 $ 13,205 $ 15,935 $ 15,925 $ 16,575 $ 15,106 $ 13,003 $ 15,715 $ 15,805 7/31/08 $ 16,333 $ 14,954 $ 13,028 $ 15,631 $ 15,699 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. (3) The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (70%) and the Lehman Brothers Intermediate Government/Credit Bond Index (30%). The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. (4) The LifeModel Moderately Aggressive Target Neutral Style Class Index Blend is an index-based baseline style class allocation determined by the Advisor to be optimal under static market and economic conditions. The target neutral style class index blend is a hypothetical blend only and does not represent underlying allocations in the Fund. The Advisor will periodically adjust the baseline style class allocation. 33 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderately Aggressive Fund(SM) - -------------------------------------------------------------------------------- LifeModel Moderately Aggressive Target Neutral Style Class Index Blend Small Cap Growth Index(5) ............................................. 3.5% Small Cap Value Index(6) .............................................. 3.5% International Index(7) ................................................ 14.0% Mid Cap Growth Index(8) ............................................... 7.0% Mid Cap Value Index(9) ................................................ 7.0% Large Cap Growth Index(10) ............................................ 12.0% Large Cap Value Index(11) ............................................. 12.0% Large Cap Core Index(12) .............................................. 11.0% High Yield Bond Index(13) ............................................. 1.5% Total Return Bond Index(14) ........................................... 21.0% Short Term Bond Index(15) ............................................. 7.5% (5) The Small Cap Growth Index represents the Russell 2000(R) Growth Index. The Russell 2000(R) Growth Index measures the performance of those Russell 2000 companies that have higher price-to-book values and higher forecasted growth rates. (6) The Small Cap Value Index represents the Russell 2000(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values. (7) The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE(R) Index is a widely recognized, unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. (8) The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index. The Russell MidCap(R) Growth Index measures the performance of those Russell MidCap companies with higher price-to-book ratios and higher forecasted growth values. (9) The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The Russell MidCap(R) Value Index measures the performance of those Russell MidCap companies with lower price-to-book ratios and lower forecasted growth values. (10) The Large Cap Growth Index represents the Russell 1000(R) Growth Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (11) The Large Cap Value Index represents the Russell 1000(R) Value Index. The Russell 1000(R) Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. (12) The Large Cap Core Index represents the Standard & Poor's 500(R) Index. The Standard & Poor's 500(R) Index is comprised of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. (13) The High Yield Bond Index represents the Merrill Lynch High Yield Master Index. The Merrill Lynch High Yield Master Index tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. (14) The Total Return Bond Index represents the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities with maturities of at least one year. (15) The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond Index tracks the trading of short-term U.S. government securities and short-term domestic investment-grade corporate bonds with maturities between 1 and 2.99 years. 34 This page intentionally left blank. 35 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderate Fund(SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third LifeModel Moderate Fund (Institutional) declined 6.02% on a net of fee basis, while its benchmark, a blend of the Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index, retreated 1.83%. Volatility roiled investors throughout the period, as economic growth slowed in the U.S., commodity prices hit record highs and the U.S. housing market continued to implode. Fixed income markets featured a massive flight to quality as an early period aversion to mortgage backed securities spread to asset backed securities, municipal bonds and corporate bonds. Within the equity markets, the Standard & Poor's 500 Index hit an all-time high, but subsequently fell 20% from that peak. Most stock indices posted considerable losses for the 12-month period, but with less exposure to banks forced to write off billions of dollars worth of devalued mortgage-related bonds, small and mid cap stocks generally outperformed large cap equities. International stocks also struggled, although emerging market equities tended to perform somewhat better than those in established economies due to robust demand for raw materials. Within fixed income markets, short-term issues outperformed long-term bonds as the Federal Reserve slashed its key lending rate from 5.25% to 2.00% over the 12-month period. While negative within the Fund, a timely shift in exposure to international stocks aided performance as it benefited from a larger position earlier in the period and a smaller position through the closing months. Conversely, large cap stocks proved a drag on performance, as did an underweight position, relative to the benchmark, in Treasury securities within the fixed income portion of the Fund. At the period's end, global economies were slowing, commodity prices remained elevated, inflationary pressures kept building and financial strains seemed to continue unabated. Nevertheless, we believe some positive developments exist. For example, preliminary signs of a housing market bottom seemed to have emerged, commodity prices started the third quarter well off recent highs and corporate earnings outside of the financials sector held up relatively well. While we expect that a rebound in economic activity likely remains months away, we believe high quality, large company growth stocks are priced at compelling valuations. Concerns linger, however, over the fixed income market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests in underlying funds, so its investment performance is directly related to the performance of those underlying funds. Before investing, investors should assess the risks associated with and types of investments made by each of the underlying funds in which the Fund invests. Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value(2) --------- ------- ------ --------- -------- Institutional 8/1/02 -6.02% 5.80% 6.60% $14,671 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 -10.89% 4.44% 5.43% $13,730 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 -11.16% 4.43% 5.43% $13,730 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 -6.95% 4.74% 5.55% $13,826 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index(1) -11.94% 6.16% 6.93% $14,954 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index(1) 6.56% 4.10% 4.50% $13,028 - -------------------------------------------------------------------------------- LifeModel Moderate Target Neutral Style Class Index Blend(3) -5.63% 8.51% 8.95% $16,734 - -------------------------------------------------------------------------------- LifeModel Moderate Target Neutral Asset Class Index Blend(4) -1.83% 6.23% 6.88% $14,914 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.43% (Institutional Shares), 0.68% (Class A) and 1.43% (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 - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Total Return Bond Fund 33.90% Fifth Third International Equity Fund 12.60% Fifth Third Short Term Bond Fund 12.20% Fifth Third Structured Large Cap Plus Fund 8.20% Fifth Third Disciplined Large Cap Value Fund 7.60% Fifth Third Quality Growth Fund 7.40% Fifth Third All Cap Value Fund 5.30% Fifth Third Mid Cap Growth Fund 5.10% Fifth Third Small Cap Value Fund 2.70% Fifth Third Small Cap Growth Fund 2.60% Fifth Third High Yield Bond Fund 2.50% Fifth Third Institutional Money Market Fund 0.00% + Portfolio composition is subject to change. 36 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderate Fund(SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Lehman Brothers LifeModel Moderate Intermediate Target Neutral LifeModel Moderate LifeModel Moderate Dow Jones Wilshire Government/Credit Asset Class Target Neutral Style (Institutional Shares) 5000 Index Bond Index Index Blend Class Index Blend ---------------------- ------------------ ----------------- ------------------ ------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,594 $ 9,021 $ 10,331 $ 9,688 $ 9,393 12/02 $ 10,053 $ 9,682 $ 10,506 $ 10,164 $ 9,959 $ 9,894 $ 9,344 $ 10,664 $ 10,083 $ 9,724 $ 10,944 $ 10,842 $ 10,954 $ 11,040 $ 10,992 $ 11,269 $ 11,198 $ 10,952 $ 11,247 $ 11,407 12/03 $ 12,129 $ 12,533 $ 10,959 $ 11,938 $ 12,514 $ 12,449 $ 12,811 $ 11,230 $ 12,243 $ 12,900 $ 12,367 $ 12,933 $ 10,946 $ 12,167 $ 12,927 $ 12,220 $ 12,642 $ 11,242 $ 12,223 $ 12,898 12/04 $ 12,892 $ 13,870 $ 11,292 $ 12,873 $ 14,009 $ 12,736 $ 13,505 $ 11,193 $ 12,665 $ 13,827 $ 13,045 $ 13,760 $ 11,471 $ 12,981 $ 14,133 $ 13,354 $ 14,254 $ 11,411 $ 13,203 $ 14,676 12/05 $ 13,547 $ 14,503 $ 11,470 $ 13,392 $ 14,961 $ 14,078 $ 15,228 $ 11,426 $ 13,733 $ 15,682 $ 13,876 $ 14,865 $ 11,450 $ 13,617 $ 15,510 $ 14,334 $ 15,461 $ 11,816 $ 14,129 $ 16,093 12/06 $ 14,948 $ 16,498 $ 11,938 $ 14,715 $ 17,049 $ 15,265 $ 16,658 $ 12,128 $ 14,944 $ 17,419 $ 15,845 $ 17,597 $ 12,110 $ 15,380 $ 18,121 $ 16,123 $ 17,776 $ 12,458 $ 15,716 $ 18,392 12/07 $ 15,971 $ 17,122 $ 12,820 $ 15,704 $ 18,121 $ 15,117 $ 15,416 $ 13,205 $ 15,170 $ 17,029 $ 14,903 $ 15,106 $ 13,003 $ 14,963 $ 16,889 7/31/08 $ 14,671 $ 14,954 $ 13,028 $ 14,914 $ 16,734 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. (3) The LifeModel Moderate Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (50%) and the Lehman Brothers Intermediate Government/Credit Bond Index (50%). The LifeModel Moderate Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. (4) The LifeModel Moderate Target Neutral Asset Class Index Blend is an index-based baseline style class allocation determined by the Advisor to be optimal under static market and economic conditions. The target neutral style class index blend is a hypothetical blend only and does not represent underlying allocations in the Fund. The Advisor will periodically adjust the baseline style class allocation. 37 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderate Fund(SM) - -------------------------------------------------------------------------------- LifeModel Moderate Target Neutral Style Class Index Blend Small Cap Growth Index(5) ............................................. 2.5% Small Cap Value Index(6) .............................................. 2.5% International Index(7) ................................................ 10.0% Mid Cap Growth Index(8) ............................................... 5.0% Mid Cap Value Index(9) ................................................ 5.0% Large Cap Growth Index(10) ............................................ 8.5% Large Cap Value Index(11) ............................................. 8.5% Large Cap Core Index(12) .............................................. 8.0% High Yield Bond Index(13) ............................................. 2.5% Total Return Bond Index(14) ........................................... 35.0% Short Term Bond Index(15) ............................................. 12.5% (5) The Small Cap Growth Index represents the Russell 2000(R) Growth Index. The Russell 2000(R) Growth Index measures the performance of those Russell 2000 companies that have higher price-to-book values and higher forecasted growth rates. (6) The Small Cap Value Index represents the Russell 2000(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values. (7) The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE(R) Index is a widely recognized, unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. (8) The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index. The Russell MidCap(R) Growth Index measures the performance of those Russell MidCap companies with higher price-to-book ratios and higher forecasted growth values. (9) The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The Russell MidCap(R) Value Index measures the performance of those Russell MidCap companies with lower price-to-book ratios and lower forecasted growth values. (10) The Large Cap Growth Index represents the Russell 1000(R) Growth Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (11) The Large Cap Value Index represents the Russell 1000(R) Value Index. The Russell 1000(R) Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. (12) The Large Cap Core Index represents the Standard & Poor's 500(R) Index. The Standard & Poor's 500(R) Index is comprised of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. (13) The High Yield Bond Index represents the Merrill Lynch High Yield Master Index. The Merrill Lynch High Yield Master Index tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. (14) The Total Return Bond Index represents the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities with maturities of at least one year. (15) The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond Index tracks the trading of short-term U.S. government securities and short-term domestic investment-grade corporate bonds with maturities between 1 and 2.99 years. 38 This page intentionally left blank. 39 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderately Conservative Fund(SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third LifeModel Moderately Conservative Fund (Institutional) declined 4.95% on a net of fee basis, while its benchmark, a blend of the Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index, declined 0.16%. Volatility roiled investors throughout the period, as economic growth slowed in the U.S., commodity prices hit record highs and the U.S. housing market continued to implode. Fixed income markets featured a massive flight to quality as an early period aversion to mortgage backed securities spread to asset backed securities, municipal bonds and corporate bonds. Within the equity markets, the Standard & Poor's 500 Index hit an all-time high, but subsequently fell 20% from that peak. Among fixed income investments, short-term issues generally outperformed long-term bonds as the Federal Reserve slashed its key lending rate from 5.25% to 2.00% over the 12-month period. Most stock indices posted considerable losses for the period, but with less exposure to banks forced to write off billions of dollars worth of devalued mortgage-related bonds, small and mid cap stocks outperformed large cap equities. International stocks also struggled. Within the Fund, an underweight position, relative to the benchmark, in Treasury securities hindered performance in the fixed income portion of the Fund. Large cap stocks also proved a drag on performance, while a small exposure to international stocks contributed positively to performance. At the period's end, global economies were slowing, commodity prices remained elevated, inflationary pressures kept building and financial strains seemed to continue unabated. Nevertheless, we believe some positive developments exist. For example, preliminary signs of a housing market bottom seemed to have emerged, commodity prices started the third quarter well off recent highs and corporate earnings outside of the financials sector held up relatively well. While we expect that a rebound in economic activity likely remains months away, we believe high quality, large company growth stocks are priced at compelling valuations. Concerns linger, however, over the fixed income market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests in underlying funds, so its investment performance is directly related to the performance of those underlying funds. Before investing, investors should assess the risks associated with and types of investments made by each of the underlying funds in which the Fund invests. Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value(2) --------- ------- ------ --------- -------- Institutional 8/1/02 -4.95% 5.10% 5.56% $ 13,834 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 -10.05% 3.76% 4.38% $ 12,931 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 -10.27% 3.72% 4.37% $ 12,927 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 -5.93% 4.05% 4.51% $ 13,027 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index(1) -11.94% 6.16% 6.93% $ 14,954 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index(1) 6.56% 4.10% 4.50% $ 13,028 - -------------------------------------------------------------------------------- LifeModel Moderately Conservative Target Neutral Asset Class Index Blend(3) -0.16% 5.82% 6.44% $ 14,545 - -------------------------------------------------------------------------------- LifeModel Moderately Conservative Target Neutral Style Class Index Blend(4) -0.74% 6.82% 7.20% $ 15,185 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.53% (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. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Total Return Bond Fund 41.30% Fifth Third Short Term Bond Fund 14.70% Fifth Third International Equity Fund 9.60% Fifth Third Structured Large Cap Plus Fund 8.00% Fifth Third Disciplined Large Cap Value Fund 5.10% Fifth Third Quality Growth Fund 5.00% Fifth Third All Cap Value Fund 4.10% Fifth Third Mid Cap Growth Fund 4.00% Fifth Third High Yield Bond Fund 2.90% Fifth Third Small Cap Value Fund 2.20% Fifth Third Small Cap Growth Fund 2.00% Fifth Third Institutional Money Market Fund 1.10% + Portfolio composition is subject to change. 40 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderately Conservative Fund(SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Lehman Brothers LifeModel Moderately LifeModel Moderately LifeModel Moderately Intermediate Conservative Target Conservative Conservative Dow Jones Wilshire Government/Credit Neutral Asset Target Neutral (Institutional Shares) 5000 Index Bond Index Class Index Blend Style Class Index Blend ---------------------- ------------------ ----------------- -------------------- ----------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,517 $ 9,021 $ 10,331 $ 9,816 $ 9,768 12/02 $ 9,958 $ 9,682 $ 10,506 $ 10,237 $ 10,182 $ 9,844 $ 9,344 $ 10,664 $ 10,203 $ 10,110 $ 10,726 $ 10,842 $ 10,954 $ 11,031 $ 10,965 $ 10,988 $ 11,198 $ 10,952 $ 11,197 $ 11,210 12/03 $ 11,674 $ 12,533 $ 10,959 $ 11,747 $ 11,853 $ 11,925 $ 12,811 $ 11,230 $ 12,045 $ 12,177 $ 11,817 $ 12,933 $ 10,946 $ 11,924 $ 12,085 $ 11,751 $ 12,642 $ 11,242 $ 12,033 $ 12,213 12/04 $ 12,291 $ 13,870 $ 11,292 $ 12,554 $ 12,857 $ 12,158 $ 13,505 $ 11,193 $ 12,370 $ 12,737 $ 12,437 $ 13,760 $ 11,471 $ 12,679 $ 13,039 $ 12,673 $ 14,254 $ 11,411 $ 12,839 $ 13,304 12/05 $ 12,822 $ 14,503 $ 11,470 $ 13,000 $ 13,487 $ 13,217 $ 15,228 $ 11,426 $ 13,254 $ 13,846 $ 13,073 $ 14,865 $ 11,450 $ 13,171 $ 13,767 $ 13,507 $ 15,461 $ 11,816 $ 13,651 $ 14,262 12/06 $ 14,009 $ 16,498 $ 11,938 $ 14,131 $ 14,825 $ 14,294 $ 16,658 $ 12,128 $ 14,353 $ 15,108 $ 14,725 $ 17,597 $ 12,110 $ 14,683 $ 15,444 $ 14,982 $ 17,776 $ 12,458 $ 15,025 $ 15,750 12/07 $ 14,856 $ 17,122 $ 12,820 $ 15,104 $ 15,793 $ 14,207 $ 15,416 $ 13,205 $ 14,781 $ 15,381 $ 14,048 $ 15,106 $ 13,003 $ 14,578 $ 15,269 7/31/08 $ 13,834 $ 14,954 $ 13,028 $ 14,545 $ 15,185 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. (3) The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (40%) and the Lehman Brothers Intermediate Government/Credit Bond Index (60%). The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. (4) The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is an index-based baseline style class allocation determined by the Advisor to be optimal under static market and economic conditions. The target neutral style class index blend is a hypothetical blend only and does not represent underlying allocations in the Fund. The Advisor will periodically adjust the baseline style class allocation. 41 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Moderately Conservative Fund(SM) - -------------------------------------------------------------------------------- LifeModel Moderately Conservative Target Neutral Style Class Index Blend Small Cap Growth Index(5) ............................................ 2.0% Small Cap Value Index(6) ............................................. 2.0% International Index(7) ............................................... 8.0% Mid Cap Growth Index(8) .............................................. 4.0% Mid Cap Value Index(9) ............................................... 4.0% Large Cap Growth Index(10) ........................................... 7.0% Large Cap Value Index(11) ............................................ 7.0% Large Cap Core Index(12) ............................................. 6.0% High Yield Bond Index(13) ............................................ 3.0% Total Return Bond Index(14) .......................................... 42.0% Short Term Bond Index(15) ............................................ 15.0% (5) The Small Cap Growth Index represents the Russell 2000(R) Growth Index. The Russell 2000(R) Growth Index measures the performance of those Russell 2000 companies that have higher price-to-book values and higher forecasted growth rates. (6) The Small Cap Value Index represents the Russell 2000(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values. (7) The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE(R) Index is a widely recognized, unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. (8) The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index. The Russell MidCap(R) Growth Index measures the performance of those Russell MidCap companies with higher price-to-book ratios and higher forecasted growth values. (9) The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The Russell MidCap(R) Value Index measures the performance of those Russell MidCap companies with lower price-to-book ratios and lower forecasted growth values. (10) The Large Cap Growth Index represents the Russell 1000(R) Growth Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (11) The Large Cap Value Index represents the Russell 1000(R) Value Index. The Russell 1000(R) Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. (12) The Large Cap Core Index represents the Standard & Poor's 500(R) Index. The Standard & Poor's 500(R) Index is comprised of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. (13) The High Yield Bond Index represents the Merrill Lynch High Yield Master Index. The Merrill Lynch High Yield Master Index tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. (14) The Total Return Bond Index represents the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities with maturities of at least one year. (15) The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond Index tracks the trading of short-term U.S. government securities and short-term domestic investment-grade corporate bonds with maturities between 1 and 2.99 years. 42 This page intentionally left blank. 43 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Conservative Fund(SM) - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third LifeModel Conservative Fund (Institutional) declined 3.67% on a net of fee basis, while its benchmark, a blend of the Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index, advanced 3.20%. Volatility roiled investors throughout the period, as economic growth slowed in the U.S., commodity prices hit record highs and the U.S. housing market continued to implode. Fixed income markets featured a massive flight to quality as an early period aversion to mortgage backed securities spread to asset backed securities, municipal bonds and corporate bonds. Within the equity markets, the Standard & Poor's 500 Index hit an all-time high, but subsequently fell 20% from that peak. Among fixed income investments, short-term issues generally outperformed long-term bonds as the Federal Reserve slashed its key lending rate from 5.25% to 2.00% over the 12-month period. Most stock indices posted considerable losses for the period, but with less exposure to banks forced to write off billions of dollars worth of devalued mortgage-related bonds, small and mid cap stocks outperformed large cap equities. International stocks also struggled. Within the Fund, an underweight position, relative to the benchmark, in Treasury securities hindered performance in the fixed income portion of the Fund. Large cap stocks also proved a drag on performance, while a small exposure to international stocks contributed positively to performance. At the period's end, global economies were slowing, commodity prices remained elevated, inflationary pressures kept building and financial strains seemed to continue unabated. Nevertheless, we believe some positive developments did exist. For example, preliminary signs of a housing market bottom seemed to have emerged, commodity prices started the third quarter well off recent highs and corporate earnings outside of the financials sector held up relatively well. While we expect that a rebound in economic activity likely remains months away, we believe high quality, large company growth stocks are priced at compelling valuations. Concerns linger, however, over the fixed income market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- The Fund invests in underlying funds, so its investment performance is directly related to the performance of those underlying funds. Before investing, investors should assess the risks associated with and types of investments made by each of the underlying funds in which the Fund invests. Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. - -------------------------------------------------------------------------------- Average Annual Total Returns as of July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year 5 Year Inception Value(2) --------- ------- ------ --------- -------- Institutional 8/1/02 -3.67% 3.83% 4.45% $ 12,985 - -------------------------------------------------------------------------------- Class A Shares 8/1/02 -8.76% 2.51% 3.29% $ 12,140 - -------------------------------------------------------------------------------- Class B Shares 8/1/02 -9.18% 2.45% 3.27% $ 12,126 - -------------------------------------------------------------------------------- Class C Shares 8/1/02 -4.70% 2.78% 3.40% $ 12,224 - -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index(1) -11.94% 6.16% 6.93% $ 14,954 - -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index(1) 6.56% 4.10% 4.50% $ 13,028 - -------------------------------------------------------------------------------- LifeModel Conservative Target Neutral Asset Class Index Blend(3) 3.20% 4.98% 5.50% $ 13,793 - -------------------------------------------------------------------------------- LifeModel Conservative Target Neutral Style Class Index Blend(4) -8.87% 9.59% 10.04% $ 17,766 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.62% (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 - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Total Return Bond Fund 54.60% Fifth Third Short Term Bond Fund 19.70% Fifth Third International Equity Fund 4.80% Fifth Third Structured Large Cap Plus Fund 4.10% Fifth Third High Yield Bond Fund 4.00% Fifth Third Disciplined Large Cap Value Fund 2.60% Fifth Third Quality Growth Fund 2.60% Fifth Third All Cap Value Fund 2.10% Fifth Third Mid Cap Growth Fund 2.00% Fifth Third Institutional Money Market Fund 1.50% Fifth Third Small Cap Value Fund 1.10% Fifth Third Small Cap Growth Fund 1.00% + Portfolio composition is subject to change. 44 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Conservative Fund(SM) - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Lehman Brothers Intermediate LifeModel Conservative LifeModel Conservative LifeModel Conservative Dow Jones Wilshire Government/Credit Target Neutral Asset Target Neutral Style (Institutional Shares) 5000 Index Bond Index Class Index Blend Class Index Blend ---------------------- ------------------ ----------------- ---------------------- ---------------------- 8/1/02 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 9,909 $ 9,021 $ 10,331 $ 10,073 $ 9,145 12/02 $ 10,233 $ 9,682 $ 10,506 $ 10,377 $ 9,800 $ 10,245 $ 9,344 $ 10,664 $ 10,437 $ 9,460 $ 10,840 $ 10,842 $ 10,954 $ 11,000 $ 10,990 $ 10,996 $ 11,198 $ 10,952 $ 11,082 $ 11,517 12/03 $ 11,383 $ 12,533 $ 10,959 $ 11,356 $ 12,944 $ 11,609 $ 12,811 $ 11,230 $ 11,642 $ 13,374 $ 11,450 $ 12,933 $ 10,946 $ 11,436 $ 13,489 $ 11,500 $ 12,642 $ 11,242 $ 11,643 $ 13,341 12/04 $ 11,819 $ 13,870 $ 11,292 $ 11,919 $ 14,793 $ 11,714 $ 13,505 $ 11,193 $ 11,779 $ 14,563 $ 11,979 $ 13,760 $ 11,471 $ 12,073 $ 14,869 $ 12,086 $ 14,254 $ 11,411 $ 12,118 $ 15,621 12/05 $ 12,194 $ 14,503 $ 11,470 $ 12,226 $ 15,981 $ 12,414 $ 15,228 $ 11,426 $ 12,321 $ 16,984 $ 12,345 $ 14,865 $ 11,450 $ 12,295 $ 16,737 $ 12,737 $ 15,461 $ 11,816 $ 12,716 $ 17,384 12/06 $ 13,074 $ 16,498 $ 11,938 $ 13,004 $ 18,650 $ 13,305 $ 16,658 $ 12,128 $ 13,210 $ 19,087 $ 13,528 $ 17,597 $ 12,110 $ 13,353 $ 20,085 $ 13,756 $ 17,776 $ 12,458 $ 13,701 $ 20,319 12/07 $ 13,696 $ 17,122 $ 12,820 $ 13,936 $ 19,781 $ 13,339 $ 15,416 $ 13,205 $ 13,995 $ 18,146 $ 13,195 $ 15,106 $ 13,003 $ 13,795 $ 17,975 7/31/08 $ 12,985 $ 14,954 $ 13,028 $ 13,793 $ 17,766 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. (3) The LifeModel Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (20%) and the Lehman Brothers Intermediate Government/Credit Bond Index (80%). The LifeModel Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. (4) The LifeModel Conservative Target Neutral Asset Class Index Blend is an index-based baseline style class allocation determined by the Advisor to be optimal under static market and economic conditions. The target neutral style class index blend is a hypothetical blend only and does not represent underlying allocations in the Fund. The Advisor will periodically adjust the baseline style class allocation. 45 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Fifth Third LifeModel Conservative Fund(SM) - -------------------------------------------------------------------------------- LifeModel Conservative Target Neutral Style Class Index Blend Small Cap Growth Index(5) ............................................. 1.0% Small Cap Value Index(6) .............................................. 1.0% International Index(7) ................................................ 4.0% Mid Cap Growth Index(8) ............................................... 2.0% Mid Cap Value Index(9) ................................................ 2.0% Large Cap Growth Index(10) ............................................ 3.5% Large Cap Value Index(11) ............................................. 3.5% Large Cap Core Index(12) .............................................. 3.0% High Yield Bond Index(13) ............................................. 4.0% Total Return Bond Index(14) ........................................... 56.0% Short Term Bond Index(15) ............................................. 20.0% (5) The Small Cap Growth Index represents the Russell 2000(R) Growth Index. The Russell 2000(R) Growth Index measures the performance of those Russell 2000 companies that have higher price-to-book values and higher forecasted growth rates. (6) The Small Cap Value Index represents the Russell 2000(R) Value Index. The Russell 2000(R) Value Index measures the performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values. (7) The International Index represents the MSCI EAFE(R) Index. The MSCI EAFE(R) Index is a widely recognized, unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. (8) The Mid Cap Growth Index represents the Russell MidCap(R) Growth Index. The Russell MidCap(R) Growth Index measures the performance of those Russell MidCap companies with higher price-to-book ratios and higher forecasted growth values. (9) The Mid Cap Value Index represents the Russell MidCap(R) Value Index. The Russell MidCap(R) Value Index measures the performance of those Russell MidCap companies with lower price-to-book ratios and lower forecasted growth values. (10) The Large Cap Growth Index represents the Russell 1000(R) Growth Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (11) The Large Cap Value Index represents the Russell 1000(R) Value Index. The Russell 1000(R) Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. (12) The Large Cap Core Index represents the Standard & Poor's 500(R) Index. The Standard & Poor's 500(R) Index is comprised of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. (13) The High Yield Bond Index represents the Merrill Lynch High Yield Master Index. The Merrill Lynch High Yield Master Index tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. (14) The Total Return Bond Index represents the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities with maturities of at least one year. (15) The Short Term Bond Index represents the Merrill Lynch 1-3 Year Government Corporate Bond Index. The Merrill Lynch 1-3 Year Government Corporate Bond Index tracks the trading of short-term U.S. government securities and short-term domestic investment-grade corporate bonds with maturities between 1 and 2.99 years. 46 This page intentionally left blank. 47 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- High Yield Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third High Yield Bond Fund (Institutional) advanced 2.98% on a net of fee basis, outperforming its benchmark, the Merrill Lynch High Yield Master Index, which declined 0.48%. Despite the relatively lackluster returns and a generally unhealthy credit environment, high yield bonds ranked among the best performing assets in the market during the period. We expect that weak economic growth and increased inflationary pressures tempered the possibility of larger gains, however, especially with few prospects for potential near-term positive catalysts in the marketplace. During the 12-month period, macroeconomic conditions worsened as problems in the housing and credit markets proved stubborn, undermined in part by falling housing values and instability among investment banks and commercial banks. A considerable spike in oil prices took an added toll on the economy, sapping consumer confidence, gobbling up personal incomes and stressing corporate bottom lines. Although the federal economic stimulus package proved effective in bolstering consumer spending during the second quarter of 2008, its extended impact remains to be seen. Against this backdrop, the Fund benefited from a reduced exposure to the automotive industry, which faced concerns surrounding the long-term viability of domestic vehicle manufacturers. Other positions that enhanced returns included an underweight stake, relative to the benchmark, in the gaming industry and effective security selection among coal mining concerns. Gaming companies are grappling with overcapacity and reduced spending on leisure activities, while coal has enjoyed a renaissance as a core energy source. A lack of exposure to select companies within the telecommunication services sector hurt performance as a large acquisition propped up the wireless communications industry. Allowing for the market's recent turmoil, we believe that valuations in the high yield space seem fair and offer attractive relative returns at the period's end. Nonetheless, the Fund remains focused on delivering solid risk-adjusted returns with lower volatility than the broader market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. 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 July 31, 2008 - -------------------------------------------------------------------------------- Inception Since Ending Date 1 Year Inception Value(2) --------- ------ --------- -------- Institutional 11/29/05 2.98% 3.90% $ 11,075 - -------------------------------------------------------------------------------- Class A Shares 11/29/05 -2.41% 1.64% $ 10,443 - -------------------------------------------------------------------------------- Class B Shares 11/29/05 -2.84% 1.88% $ 10,509 - -------------------------------------------------------------------------------- Class C Shares 11/29/05 2.00% 2.86% $ 10,782 - -------------------------------------------------------------------------------- Merrill Lynch High Yield Master Index(1) -0.48% -4.30% $ 10,626 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.15% (Institutional Shares), 1.40% (Class A) and 2.15% (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 quoted performance does not reflect the deduction of taxes on Fund distributions or redemption of shares. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] 0.00% 0.00% Corporate Bonds 83.00% Investment Companies 21.30% Foreign Bonds 11.80% 0.00% 0.00% 0.00% + Portfolio composition is subject to change. 48 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- High Yield Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] High Yield Bond Merrill Lynch (Institutional Shares) High Yield Master Index ---------------------- ----------------------- 11/29/05 $ 10,000 $ 10,000 12/05 $ 10,002 $ 10,092 03/06 $ 10,231 $ 10,380 06/06 $ 10,094 $ 10,396 09/06 $ 10,420 $ 10,817 12/06 $ 10,817 $ 11,267 03/07 $ 11,096 $ 11,569 06/07 $ 11,100 $ 11,605 09/07 $ 11,209 $ 11,645 12/07 $ 11,165 $ 11,512 03/08 $ 10,934 $ 11,169 06/08 $ 11,216 $ 10,968 7/31/08 $ 11,075 $ 10,626 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Merrill Lynch High Yield Master Index, an unmanaged index which tracks the performance of below investment grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, at least $100,000,000 par outstanding, and a fixed coupon schedule. The index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2008. 49 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Total Return Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Total Return Bond Fund (Institutional) declined 1.86% on a net of fee basis, trailing its benchmark, the Lehman Brothers Aggregate Bond Index, which advanced 6.15%. U.S. Treasury securities led the fixed income market for much of the 12-month period as investors sought out safe havens amid credit market problems and liquidity issues. Extended woes in the mortgage and housing industries resulted in steep losses in mortgage-related bonds, and an economic slowdown hit corporate bonds as well. Meanwhile, the short end of the yield curve outperformed the long end, helped in part by the Federal Reserve, which reduced its prime lending rate from 5.25% to 2.00%. Bonds that weighed on Fund performance during this challenging period included commercial mortgage backed securities (CMBS), residential mortgage backed securities (RMBS) and consumer asset backed securities (ABS). One of the most volatile sectors in the fixed income market, CMBS plummeted in March. A recovery followed, but uncertainties remained amid questions surrounding the ability of shopping malls and office buildings to endure the economic downturn. The RMBS market hit its 12-month low in April, but securities backed by prime loans have rebounded much better than those tied to subprime mortgages. Consumer ABS, most notably issues backed by automobile and credit card loans, experienced significant downward pressure as sagging consumer confidence exacerbated the impact of the broader economic stumble. Positive contributions to performance came from an underweight position, relative to the benchmark, in corporate bonds, as well as a modest exposure to international bonds and currencies, which benefited from a weaker U.S. dollar. At the period's end, the fixed income markets continued to face considerable unknowns as the system extended its purge of excesses created during the Fed's most-recent easing cycle. While contending with the related market strains, the Fund remains patiently focused on the potential for long-term performance historically generated by securities with sound 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ --------- -------- Institutional -1.86% 2.54% 4.06% $ 14,887 - -------------------------------------------------------------------------------- Class A Shares -6.63% 1.29% 3.31% $ 13,850 - -------------------------------------------------------------------------------- Class B Shares -7.46% 1.17% 3.02% $ 13,462 - -------------------------------------------------------------------------------- Class C Shares -2.72% 1.53% 3.02% $ 13,470 - -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index(1) 6.15% 4.55% 5.65% $ 17,331 - -------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08 the gross expense ratios are 0.88% (Institutional Shares), 1.13 % (Class A) and 1.88% (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 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. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] U.S. Government Agencies 32.30% Mortgage-Backed Securities 31.90% Corporate Bonds 8.40% Asset-Backed Securities 8.40% Investment Companies 6.10% Investments in Affiliates 4.80% U.S. Treasury Obligations 4.40% Foreign Bonds 1.80% Preferred Stocks 1.80% Demand Notes 0.10% + Portfolio composition is subject to change. 50 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Total Return Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Total Return Bond Lehman Brothers (Institutional Shares) Aggregate Bond Index ---------------------- -------------------- 7/31/98 $ 10,000 $ 10,000 $ 10,439 $ 10,401 12/98 $ 10,499 $ 10,436 $ 10,335 $ 10,384 $ 10,119 $ 10,293 $ 10,112 $ 10,363 12/99 $ 10,037 $ 10,350 $ 10,343 $ 10,578 $ 10,402 $ 10,763 $ 10,736 $ 11,087 12/00 $ 11,232 $ 11,553 $ 11,607 $ 11,904 $ 11,623 $ 11,971 $ 12,232 $ 12,523 12/01 $ 12,046 $ 12,529 $ 11,923 $ 12,540 $ 12,430 $ 13,004 $ 13,018 $ 13,600 12/02 $ 13,181 $ 13,814 $ 13,353 $ 14,006 $ 13,618 $ 14,356 $ 13,577 $ 14,335 12/03 $ 13,603 $ 14,381 $ 13,929 $ 14,763 $ 13,571 $ 14,402 $ 13,978 $ 14,863 12/04 $ 14,103 $ 15,004 $ 14,062 $ 14,932 $ 14,451 $ 15,382 $ 14,334 $ 15,278 12/05 $ 14,401 $ 15,369 $ 14,315 $ 15,270 $ 14,280 $ 15,258 $ 14,807 $ 15,839 12/06 $ 14,970 $ 16,035 $ 15,189 $ 16,276 $ 15,075 $ 16,192 $ 15,341 $ 16,653 12/07 $ 15,631 $ 17,152 $ 15,502 $ 17,524 $ 15,228 $ 17,345 7/31/08 $ 14,887 $ 17,331 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is representative of investment-grade fixed-rate debt issues, including government, corporate, asset- backed, and mortgage-backed securities, with maturities of at least one year. The Lehman Brothers Aggregate Bond Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2008. 51 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Short Term Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Short Term Bond Fund (Institutional) advanced 3.80% on a net of fee basis, compared to its benchmarks, the Merrill Lynch 1-3 Year Government/Corporate Bond Index, which returned 6.23%; the U.S. consumer price index, which advanced 5.60%; and the 91-day Treasury bill, which gained 3.40%. U.S. Treasury securities led the fixed income market for much of the period as investors sought out safe havens amid credit market problems and liquidity issues. Extended woes in the mortgage and housing industries resulted in steep losses in mortgage-related bonds, and an economic slowdown hit corporate bonds as well. Meanwhile, short term bonds outperformed long term issues, helped in part by the Federal Reserve, which reduced its prime lending rate from 5.25% to 2.00%. Bonds that weighed on Fund performance during this challenging period included commercial mortgage backed securities (CMBS), residential mortgage backed securities (RMBS) and consumer asset backed securities (ABS). One of the most volatile sectors in the fixed income market, CMBS plummeted in March. A recovery followed, but uncertainties remained amid questions surrounding the ability of shopping malls and office buildings to endure the economic downturn. The RMBS market hit its 12-month low in April, but the Fund benefited slightly from a greater focus on non-government agency RMBS while Fannie Mae and Freddie Mac suffered amid solvency questions. Consumer ABS, most notably issues backed by automobile and credit card loans, experienced significant downward pressure as sagging consumer confidence exacerbated the impact of the broader economic stumble. Positive contributions to performance came from an underweight position, relative to the benchmark, in corporate bonds; a modestly short duration, which helped as rates edged up late in the period; and select use of Treasury futures. Historically, Treasury securities have not led the fixed income markets, and the Fund therefore has not attempted to time periods of under- and overperformance. We continue to believe that a focus on sound credit analysis, along with patience through trying times such as these, is an optimal strategy for achieving long-term success in the short term bond market. - -------------------------------------------------------------------------------- Investment Risk Considerations - -------------------------------------------------------------------------------- Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional 3.80% 2.83% 4.10% $14,945 - ------------------------------------------------------------------------------- Class A Shares 0.02% 1.89% 3.56% $14,184 - ------------------------------------------------------------------------------- Class C Shares 2.87% 1.81% 3.07% $13,527 - ------------------------------------------------------------------------------- Merrill Lynch 1-3 Year Government/Corporate Bond Index(1) 6.23% 3.55% 4.84% $16,050 - ------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.79% (Institutional Shares), 1.04% (Class A) and 1.79% (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. - -------------------------------------------------------------------------------- Fund Holdings as of July 31, 2008 - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] Mortgage-Backed Securities 28.50% U.S. Government Agencies 26.40% Corporate Bonds 18.90% Asset-Backed Securities 17.30% U.S. Treasury Obligations 4.40% Foreign Bonds 2.60% Investments in Affiliates 1.70% Municipal Bonds 0.20% + Portfolio composition is subject to change. 52 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Short Term Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Short Term Bond Merrill Lynch 1-3 Year (Institutional Shares) Government/Corporate Bond Index ---------------------- ------------------------------- 7/31/98 $ 10,000 $ 10,000 $ 10,200 $ 10,248 12/98 $ 10,280 $ 10,332 $ 10,347 $ 10,406 $ 10,371 $ 10,468 $ 10,489 $ 10,595 12/99 $ 10,537 $ 10,668 $ 10,658 $ 10,800 $ 10,834 $ 10,982 $ 11,094 $ 11,229 12/00 $ 11,393 $ 11,528 $ 11,716 $ 11,863 $ 11,846 $ 12,017 $ 12,223 $ 12,435 12/01 $ 12,293 $ 12,532 $ 12,239 $ 12,535 $ 12,492 $ 12,837 $ 12,748 $ 13,140 12/02 $ 12,888 $ 13,296 $ 12,995 $ 13,411 $ 13,096 $ 13,560 $ 13,150 $ 13,626 12/03 $ 13,149 $ 13,661 $ 13,265 $ 13,814 $ 13,122 $ 13,658 $ 13,236 $ 13,813 12/04 $ 13,246 $ 13,827 $ 13,212 $ 13,788 $ 13,365 $ 13,958 $ 13,386 $ 13,976 12/05 $ 13,465 $ 14,069 $ 13,526 $ 14,136 $ 13,610 $ 14,229 $ 13,874 $ 14,519 12/06 $ 14,015 $ 14,667 $ 14,213 $ 14,879 $ 14,304 $ 14,987 $ 14,550 $ 15,344 12/07 $ 14,796 $ 15,675 $ 14,947 $ 16,091 $ 14,986 $ 16,003 7/31/08 $ 14,945 $ 16,050 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Merrill Lynch 1-3 Year Government/Corporate Bond Index. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is composed of U.S. Treasury issues and publicly issued debt of U.S. Government agencies with maturities of one to three years. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 53 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Municipal Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Municipal Bond Fund (Institutional) advanced 2.87% on a net of fee basis, outperforming its benchmark, the Lehman Brothers Municipal Bond Index, which gained 2.83%. The municipal bond market spent most of the 12-month period in a state of disarray, enduring stunning downgrades among so-called monoline insurers, a virtual shutdown of the auction rate securities market and broad selloffs by non-traditional municipal bond investors. Meanwhile, the yield curve steepened drastically, with short-term rates falling and long-term yields rising. The deterioration of the monoline insurance industry, which traditionally provided municipal issuers with financial backing but experienced eroding fundamentals in the wake of subprime mortgage market woes, undermined all insured municipal issues. Support for auction rate securities - which offered municipalities more flexible credit - collapsed as investment banks, which historically absorbed any bonds that failed to sell at auction, stopped taking on new debt amid their own balance sheet challenges. As for non-traditional municipal bond investors, many highly leveraged investors such as hedge funds bailed out of municipal bonds when the market's liquidity troubles heightened. While contending with such volatility, the Fund benefited from an overweight position, relative to the benchmark, in short-term bonds, which generally outperformed long-term issues over the period. The Fund's higher quality orientation further enhanced returns, as low grade securities lagged significantly. Select exposure to pre-refunded bonds, which tend to spike when the original issuers announce they will be refinanced, also provided a lift. The Fund's insured holdings hindered performance as the market punished issues backed by a monoline insurer. Interestingly, supply through the first seven months of 2008 was comparable to 2007 levels as $260 billion worth of bonds were brought to market. Refinancing deals - driven largely by the collapse of the auction rate market - accounted for $75 billion of the total issuance, a 31% jump over the same period in 2007. - -------------------------------------------------------------------------------- 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional 2.87% 3.54% 4.30% $15,234 - ------------------------------------------------------------------------------- Class A Shares -2.30% 2.26% 3.54% $14,166 - ------------------------------------------------------------------------------- Class B Shares -3.05% 2.18% 3.25% $13,773 - ------------------------------------------------------------------------------- Class C Shares 1.79% 2.50% 3.26% $13,788 - ------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index(1) 2.83% 4.34% 4.91% $16,154 - ------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 1.07% (Institutional Shares), 1.32% (Class A) and 2.08% (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 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. - -------------------------------------------------------------------------------- Bond Quality as of July 31, 2008 as represented by Standard and Poor's/Moody's Rating Agencies - -------------------------------------------------------------------------------- as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 28.51% AA+/Aa1 7.84% AA/Aa2 23.95% AA-/Aa3 4.73% A+/A1 4.59% A/A2 11.93% A-/A3 3.48% BBB+/Baa1 1.70% BBB-/Baa3 6.75% NR/NR 1.40% Net Cash and Equivalents 5.12% + Portfolio composition is subject to change. 54 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Municipal Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Municipal Bond Lehman Brothers (Institutional Shares) Municipal Bond Index ---------------------- -------------------- 7/31/98 $ 10,000 $ 10,000 $ 10,305 $ 10,281 12/98 $ 10,327 $ 10,343 $ 10,375 $ 10,435 $ 10,142 $ 10,250 $ 10,094 $ 10,210 12/99 $ 9,991 $ 10,130 $ 10,310 $ 10,426 $ 10,449 $ 10,584 $ 10,694 $ 10,840 12/00 $ 11,229 $ 11,314 $ 11,438 $ 11,565 $ 11,482 $ 11,640 $ 11,783 $ 11,967 12/01 $ 11,685 $ 11,894 $ 11,795 $ 12,006 $ 12,238 $ 12,445 $ 12,838 $ 13,036 12/02 $ 12,813 $ 13,036 $ 12,948 $ 13,193 $ 13,281 $ 13,533 $ 13,265 $ 13,544 12/03 $ 13,413 $ 13,729 $ 13,598 $ 13,966 $ 13,248 $ 13,636 $ 13,718 $ 14,167 12/04 $ 13,826 $ 14,344 $ 13,768 $ 14,339 $ 14,110 $ 14,759 $ 14,055 $ 14,741 12/05 $ 14,099 $ 14,848 $ 14,108 $ 14,885 $ 14,084 $ 14,889 $ 14,571 $ 15,397 12/06 $ 14,709 $ 15,567 $ 14,792 $ 15,693 $ 14,686 $ 15,589 $ 14,987 $ 15,873 12/07 $ 15,181 $ 16,090 $ 15,172 $ 15,991 $ 15,180 $ 16,093 7/31/08 $ 15,234 $ 16,154 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal Bond Index is generally representative of the municipal bond market. The Lehman Brothers Municipal Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2008. 55 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Intermediate Municipal Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Intermediate Municipal Bond Fund (Institutional) returned 3.83% on a net of fee basis, trailing its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which gained 5.71%. The municipal bond market spent most of the 12-month period in a state of disarray, enduring stunning downgrades among so-called monoline insurers, a virtual shutdown of the auction rate securities market and broad selloffs by non-traditional municipal bond investors. Meanwhile, the yield curve steepened drastically, with short-term rates falling and long-term yields rising. The deterioration of the monoline insurance industry, which traditionally provided municipal issuers with financial backing but experienced eroding fundamentals in the wake of subprime mortgage market woes, undermined all insured municipal issues. Support for auction rate securities - which offered municipalities more flexible credit - collapsed as investment banks, which historically absorbed any bonds that failed to sell at auction, stopped taking on new debt amid their own balance sheet challenges. As for non-traditional municipal bond investors, many highly leveraged investors such as hedge funds bailed out of municipal bonds when the market's liquidity troubles heightened. While contending with such volatility, the Fund benefited from an overweight position, relative to the benchmark, in short-term bonds, which generally outperformed long-term issues. Conversely, the quality of the Fund's holdings, which was modestly lower than the benchmark, weighed on returns, as lower grade securities lagged. Further hindering performance was the Fund's exposure to alternative minimum tax-eligible bonds, especially those issued by airports and housing authorities, which struggled with the slowing economy. Interestingly, supply through the first seven months of 2008 was comparable to 2007 levels as $260 billion worth of bonds were brought to market. Refinancing deals - driven largely by the collapse of the auction rate market - accounted for $75 billion of the total issuance, a 31% jump over the same period in 2007. - -------------------------------------------------------------------------------- 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional 3.83% 2.98% 3.86% $14,601 - ------------------------------------------------------------------------------- Class A Shares -0.03% 1.97% 3.23% $13,742 - ------------------------------------------------------------------------------- Class B Shares -1.50% 2.30% 3.16% $13,649 - ------------------------------------------------------------------------------- Class C Shares 2.77% 1.95% 2.81% $13,199 - ------------------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index(1) 5.71% 3.95% 4.68% $15,856 - ------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.85% (Institutional Shares), 1.10% (Class A) and 1.85% (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. - -------------------------------------------------------------------------------- Bond Quality as of July 31, 2008 - -------------------------------------------------------------------------------- as represented by Standard and Poor's/Moody's Rating Agencies as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 29.51% AA+/Aa1 4.64% AA/Aa2 23.25% AA-/Aa3 9.93% A+/A1 5.16% A/A2 6.42% A-/A3 6.73% BBB+/Baa1 5.69% BBB/Baa2 1.91% BBB-/Baa3 3.55% NR/NR 2.43% Net Cash and Equivalents 0.78% + Portfolio composition is subject to change. NR - Not Rated 56 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Intermediate Municipal Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Intermediate Municipal Bond Lehman Brothers Quality Intermediate (Institutional Shares) Municipal Bond Index --------------------------- ------------------------------------ 7/31/98 $ 10,000 $ 10,000 $ 10,261 $ 10,281 12/98 $ 10,319 $ 10,361 $ 10,370 $ 10,451 $ 10,201 $ 10,303 $ 10,230 $ 10,390 12/99 $ 10,214 $ 10,391 $ 10,419 $ 10,556 $ 10,558 $ 10,718 $ 10,761 $ 10,944 12/00 $ 11,132 $ 11,287 $ 11,379 $ 11,575 $ 11,462 $ 11,665 $ 11,756 $ 11,986 12/01 $ 11,659 $ 11,910 $ 11,739 $ 12,014 $ 12,156 $ 12,478 $ 12,589 $ 12,977 12/02 $ 12,619 $ 13,010 $ 12,739 $ 13,155 $ 12,962 $ 13,454 $ 12,988 $ 13,521 12/03 $ 13,031 $ 13,614 $ 13,161 $ 13,789 $ 12,894 $ 13,500 $ 13,245 $ 13,933 12/04 $ 13,300 $ 14,027 $ 13,185 $ 13,904 $ 13,464 $ 14,227 $ 13,409 $ 14,189 12/05 $ 13,461 $ 14,258 $ 13,441 $ 14,252 $ 13,453 $ 14,275 $ 13,862 $ 14,692 12/06 $ 13,962 $ 14,798 $ 14,055 $ 14,930 $ 13,965 $ 14,874 $ 14,252 $ 15,239 12/07 $ 14,421 $ 15,522 $ 14,566 $ 15,744 $ 14,491 $ 15,679 7/31/08 $ 14,601 $ 15,856 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 57 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Ohio Municipal Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Ohio Municipal Bond Fund (Institutional) advanced 3.95% on a net of fee basis, trailing its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which gained 5.71%. Housing market woes continued to weigh on the Ohio economy as the state's foreclosure rate consistently has ranked among the country's worst. Yet while the state's unemployment rate remained higher than the national average, its job market was essentially flat through the first six months of 2008 as new service sector jobs offset losses in the manufacturing and construction industries. Another potential bright spot was the passage of a bipartisan $1.6 billion stimulus package, which was designed to boost the state's employment environment. Against this backdrop, the state issued $7.0 billion worth of municipal bonds through the first seven months of 2008, a 16% rise over the same time period in 2007. Nationally, issuance was flat through the first seven months of 2008. Broadly speaking, the municipal bond market spent most of the 12-month period in a state of disarray, enduring stunning downgrades among so-called monoline insurers, a virtual shutdown of the auction rate securities market and broad selloffs by non-traditional municipal bond investors. Meanwhile, the yield curve steepened drastically, with short-term rates falling and long-term yields rising. While contending with such volatility, the Fund benefited from an overweight position, relative to the benchmark, in short-term bonds, which generally outperformed long-term issues. Select exposure to pre-refunded bonds, which tend to spike when the original issuers announce they will be refinanced, also provided a lift. Conversely, the quality of the Fund's holdings, which was modestly lower than the benchmark, hindered returns, as lower grade securities lagged. - -------------------------------------------------------------------------------- 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional 3.95% 2.99% 3.65% $14,309 - ------------------------------------------------------------------------------- Class A Shares -1.36% 1.74% 2.89% $13,302 - ------------------------------------------------------------------------------- Class B Shares -2.06% 1.61% 2.48% $12,779 - ------------------------------------------------------------------------------- Class C Shares 2.96% 1.96% 2.67% $13,016 - ------------------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index(1) 5.71% 3.95% 4.68% $15,856 - ------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.89% (Institutional Shares), 1.14% (Class A) and 1.89% (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. - -------------------------------------------------------------------------------- Bond Quality as of July 31, 2008 - -------------------------------------------------------------------------------- as represented by Standard and Poor's/Moody's Rating Agencies as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 17.29% AA+/Aa1 6.24% AA/Aa2 25.41% AA-/Aa3 15.98% A+/A1 4.59% A/A2 12.31% A-/A3 4.03% BBB-/Baa3 2.24% NR/NR 11.83% Net Cash and Equivalents 0.08% + Portfolio composition is subject to change. NR - Not Rated 58 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Ohio Municipal Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Ohio Municipal Bond Lehman Brothers Quality Intermediate (Institutional Shares) Municipal Bond Index ---------------------- ------------------------------------ 7/31/98 $ 10,000 $ 10,000 $ 10,301 $ 10,281 12/98 $ 10,350 $ 10,361 $ 10,371 $ 10,451 $ 10,135 $ 10,303 $ 10,110 $ 10,390 12/99 $ 10,046 $ 10,391 $ 10,259 $ 10,556 $ 10,373 $ 10,718 $ 10,577 $ 10,944 12/00 $ 10,937 $ 11,287 $ 11,170 $ 11,575 $ 11,238 $ 11,665 $ 11,515 $ 11,986 12/01 $ 11,436 $ 11,910 $ 11,494 $ 12,014 $ 11,892 $ 12,478 $ 12,318 $ 12,977 12/02 $ 12,334 $ 13,010 $ 12,444 $ 13,155 $ 12,679 $ 13,454 $ 12,715 $ 13,521 12/03 $ 12,807 $ 13,614 $ 12,935 $ 13,789 $ 12,653 $ 13,500 $ 13,004 $ 13,933 12/04 $ 13,061 $ 14,027 $ 12,949 $ 13,904 $ 13,224 $ 14,227 $ 13,153 $ 14,189 12/05 $ 13,203 $ 14,258 $ 13,205 $ 14,252 $ 13,190 $ 14,275 $ 13,575 $ 14,692 12/06 $ 13,656 $ 14,798 $ 13,744 $ 14,930 $ 13,643 $ 14,874 $ 13,940 $ 15,239 12/07 $ 14,148 $ 15,522 $ 14,221 $ 15,744 $ 14,177 $ 15,679 7/31/08 $ 14,309 $ 15,856 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 59 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Michigan Municipal Bond Fund - -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2008, the Fifth Third Michigan Municipal Bond Fund (Institutional) gained 4.43% on a net of fee basis, underperforming its benchmark, the Lehman Brothers 1-5 year Municipal Bond Index, which returned 6.04%. Michigan's economic prospects eroded further during the period as state officials forecast deeper declines in economic growth and employment for 2008 and 2009. The struggles of the automotive industry, including falling vehicle sales and shrinking market share for domestic vehicle manufacturers, accounted for much of the gloomy outlook. The state's fiscal health received a short-term reprieve as the new Michigan business tax and higher income tax rate generated new revenues, but the long-term view remains clouded by the overhang of still-soaring home foreclosure rates. Against this backdrop, the state issued $7.0 billion worth of municipal bonds through the first seven months of 2008, a 27% rise over the same time period in 2007. Nationally, issuance was flat through the first seven months of 2008. Broadly speaking, the municipal bond market spent most of the 12-month period in a state of disarray, enduring stunning downgrades among so-called monoline insurers, a virtual shutdown of the auction rate securities market and broad selloffs by non-traditional municipal bond investors. Meanwhile, the yield curve steepened drastically, with short-term rates falling and long-term yields rising. While contending with such volatility, the Fund faltered along with Michigan bonds and lagged the national-based benchmark. In an effort to maximize yield, the Fund held modestly lower quality issues and alternative minimum tax- eligible bonds, all of which were punished by investors spooked by the market's volatility. Holdings that contributed positively to performance included high quality general obligation bonds and essential revenue issues. - -------------------------------------------------------------------------------- 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 July 31, 2008 - -------------------------------------------------------------------------------- Ending 1 Year 5 Year 10 Year Value(2) ------ ------ ------- -------- Institutional 4.43% 2.36% 3.36% $13,918 - ------------------------------------------------------------------------------- Class A Shares -0.66% 1.25% 2.71% $13,064 - ------------------------------------------------------------------------------- Class B Shares -1.64% 0.97% 2.32% $12,583 - ------------------------------------------------------------------------------- Class C Shares 3.33% 1.36% 2.33% $12,593 - ------------------------------------------------------------------------------- Lehman Brothers 1-5 Year Municipal Bond Index(1) 6.04% 3.24% 4.12% $14,977 - ------------------------------------------------------------------------------- Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.fifththirdfunds.com. During the period shown, the total return figures reflect the waiver of a portion of the fund's advisory or administrative fees. Without such waiver of fees, the total returns would have been lower. As of 7/31/08, the gross expense ratios are 0.92% (Institutional Shares), 1.18% (Class A) and 1.92% (Classes B & C). The total return figures for Institutional Shares reflect a sales charge of 0.0%. The total return figures for A Shares reflect the maximum sales charge of 4.75%. The total return figures for B Shares and C Shares reflect the maximum contingent deferred sales charge (CDSC) of 5.0% and 1.0% within the first year, respectively. The Fund's performance in the above table does not reflect the deduction of taxes on Fund distributions, or redemption of shares. For the period prior to October 29, 2001, the quoted performance for the Michigan Municipal Bond Fund Institutional Shares reflects the performance of the Kent Michigan Municipal Bond Fund Institutional Shares with an inception date of May 3, 1993. Prior to October 29, 2001, the quoted performance for the Fifth Third Michigan Municipal Bond Fund Class A Shares reflects the performance of the Kent Michigan Municipal Bond Fund Investment Shares with an inception date of May 11, 1993, adjusted for the maximum sales charge. Class B and Class C Shares were initially offered on October 29, 200. The performance figures for Class B and Class C Shares for periods prior to such date represent the performance for Institutional Shares and is adjusted to reflect expenses and applicable sales charges for Class B and Class C Shares. - -------------------------------------------------------------------------------- Bond Quality as of July 31, 2008 - -------------------------------------------------------------------------------- as represented by Standard and Poor's/Moody's Rating Agencies as a percentage of value of investments+ - -------------------------------------------------------------------------------- [BAR CHART] AAA/Aaa 30.28% AA+/Aa1 3.88% AA/Aa2 42.51% AA-/Aa3 7.33% A+/A1 2.70% A/A2 1.95% A-/A3 6.50% BBB/Baa2 1.78% BBB-/Baa3 2.21% NR/NR 0.77% Net Cash and Equivalents 0.09% + Portfolio composition is subject to change. NR - Not Rated 60 MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited) - -------------------------------------------------------------------------------- Michigan Municipal Bond Fund - -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT - -------------------------------------------------------------------------------- [LINE GRAPH] Michigan Municipal Bond Lehman Brothers 1-5 Year (Institutional Shares) Municipal Bond Index ----------------------- ------------------------ 7/31/98 $ 10,000 $ 10,000 $ 10,175 $ 10,180 12/98 $ 10,254 $ 10,274 $ 10,336 $ 10,385 $ 10,246 $ 10,322 $ 10,308 $ 10,422 12/99 $ 10,322 $ 10,450 $ 10,431 $ 10,565 $ 10,552 $ 10,714 $ 10,728 $ 10,893 12/00 $ 10,973 $ 11,134 $ 11,230 $ 11,419 $ 11,331 $ 11,550 $ 11,575 $ 11,817 12/01 $ 11,574 $ 11,828 $ 11,632 $ 11,890 $ 11,966 $ 12,264 $ 12,215 $ 12,562 12/02 $ 12,293 $ 12,666 $ 12,399 $ 12,775 $ 12,523 $ 12,922 $ 12,609 $ 13,045 12/03 $ 12,583 $ 13,048 $ 12,657 $ 13,178 $ 12,482 $ 12,994 $ 12,690 $ 13,261 12/04 $ 12,718 $ 13,317 $ 12,629 $ 13,213 $ 12,780 $ 13,400 $ 12,778 $ 13,411 12/05 $ 12,820 $ 13,452 $ 12,818 $ 13,471 $ 12,848 $ 13,511 $ 13,087 $ 13,793 12/06 $ 13,161 $ 13,883 $ 13,258 $ 14,013 $ 13,269 $ 14,027 $ 13,493 $ 14,318 12/07 $ 13,676 $ 14,570 $ 13,888 $ 14,862 $ 13,810 $ 14,801 7/31/08 $ 13,918 $ 14,977 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.fifththirdfunds.com. - -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. (1) The Fund's performance is measured against the Lehman Brothers 1-5 Year Municipal Bond Index. The Lehman Brothers 1-5 Year Municipal Bond Index is representative of short term municipal bonds with a maturity between one and six years. The Lehman Brothers 1-5 Year Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value- added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. (2) The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2008. 61 This page intentionally left blank. 62 Small Cap Growth Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (97.2%) Aerospace & Defense (1.2%) Heico Corp. (a) 27,677 $ 963,713 ------------ Biotechnology (1.8%) BioMarin Pharmaceuticals, Inc. * (a) 43,054 1,401,408 ------------ Capital Markets (2.9%) BGC Partners, Inc., Class A * (a) 129,453 919,116 Waddell & Reed Financial, Inc., Class A (a) 40,154 1,341,144 ------------ 2,260,260 ------------ Chemicals (1.2%) Innophos Holdings, Inc. (a) 33,564 985,775 ------------ Commercial Services & Supplies (5.1%) CoStar Group, Inc. * (a) 24,163 1,205,492 Geo Group, Inc. (The) * (a) 45,162 1,085,694 Huron Consulting Group, Inc. * (a) 17,134 893,709 Mobile Mini, Inc. * (a) 40,242 804,035 ------------ 3,988,930 ------------ Communications Equipment (3.2%) Nice Systems, Ltd. ADR * 41,560 1,228,514 Polycom, Inc. * (a) 53,597 1,264,889 ------------ 2,493,403 ------------ Construction Materials (1.2%) Texas Industries, Inc. (a) 18,539 958,466 ------------ Consumer Finance (2.8%) Cardronics, Inc. * (a) 118,968 1,023,125 Cash America International, Inc. (a) 28,468 1,200,211 ------------ 2,223,336 ------------ Distributors (3.6%) DXP Enterprises, Inc. * (a) 31,016 1,483,805 LKQ Corp. * (a) 65,195 1,336,498 ------------ 2,820,303 ------------ Diversified Consumer Services (1.9%) American Public Education, Inc. * (a) 32,569 1,479,610 ------------ Diversified Financial Services (0.5%) NewStar Financial, Inc. * (a) 72,400 397,476 ------------ Diversified Telecommunication Services (1.2%) TW Telecom, Inc. * (a) 56,848 908,431 ------------ Electrical Components & Equipment (7.7%) AZZ, Inc. * (a) 39,275 1,797,617 Belden, Inc. (a) 30,401 1,122,405 Energy Conversion Devices, Inc. * 19,769 1,382,446 GT Solar International, Inc. * (a) 51,236 628,153 Polypore International, Inc. * (a) 42,614 1,114,356 ------------ 6,044,977 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Electronic Equipment & Instruments (2.0%) IPG Photonics Corp. * (a) 30,401 $ 539,922 Itron, Inc. * 10,983 1,014,060 ------------ 1,553,982 ------------ Energy Equipment & Service (6.9%) Complete Production Services, Inc. * (a) 50,522 1,608,620 Core Laboratories NV (a) 9,226 1,195,782 T-3 Energy Services, Inc. * (a) 21,087 1,445,936 Willbros Group, Inc. * 30,753 1,155,698 ------------ 5,406,036 ------------ Healthcare Equipment & Supplies (3.4%) Masimo Corp. * (a) 29,374 1,109,456 NuVasive, Inc. * (a) 28,644 1,608,933 ------------ 2,718,389 ------------ Healthcare Providers & Services (11.0%) Emergency Medical Services Corp., Class A * (a) 50,858 1,374,183 Genoptix, Inc. * 33,200 967,780 HMS Holdings Corp. * (a) 55,794 1,388,155 inVentiv Health, Inc. * (a) 41,033 991,357 MWI Veterinary Supply, Inc. * (a) 34,047 1,193,007 Providence Service Corp. (The) * (a) 48,589 529,620 Psychiatric Solutions, Inc. * (a) 34,794 1,218,486 Sun Healthcare Group, Inc. * (a) 67,335 962,217 ------------ 8,624,805 ------------ Healthcare Technology (1.6%) Phase Forward, Inc. * (a) 69,255 1,274,292 ------------ Hotels Restaurants & Leisure (1.9%) Bally Technologies, Inc. * (a) 21,703 689,938 Jack in the Box, Inc. * (a) 36,024 777,398 ------------ 1,467,336 ------------ Internet Software & Services (2.4%) comScore, Inc. * (a) 50,083 955,584 Vocus, Inc. * (a) 28,644 1,019,440 ------------ 1,975,024 ------------ IT Services (1.4%) Cybersource Corp. * (a) 60,626 1,076,112 ------------ Life Sciences Tools & Services (2.5%) Icon PLC ADR * 17,485 1,404,745 Varian, Inc. * 12,219 603,618 ------------ 2,008,363 ------------ Machinery (1.8%) Titan Machinery, Inc. * (a) 52,587 1,441,936 ------------ Marine (1.1%) Ultrapetrol Bahamas, Ltd. * (a) 76,618 853,525 ------------ Continued 63 Small Cap Growth Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Media (2.9%) Dolan Media Co. * (a) 49,123 $ 1,036,986 RRSat Global Communications Network, Ltd. 89,007 1,245,208 ------------ 2,282,194 ------------ Oil & Gas (2.7%) Carrizo Oil & Gas, Inc. * 17,573 884,625 Penn Virginia Corp. (a) 21,087 1,281,035 ------------ 2,165,660 ------------ Real Estate Investment Trusts (1.9%) Digital Realty Trust, Inc. (a) 34,794 1,493,011 ------------ Semiconductors & Semiconductor Equipment (4.3%) Atheros Communications, Inc. * (a) 40,681 1,261,111 AuthenTec, Inc. * (a) 39,748 303,675 Diodes, Inc. * (a) 39,100 1,015,427 Hittite Microwave Corp. * (a) 24,694 788,232 ------------ 3,368,445 ------------ Software (6.6%) Concur Technologies, Inc. * (a) 31,340 1,291,835 Micros Systems, Inc. * (a) 41,472 1,313,833 Nuance Communications, Inc. * 73,982 1,148,201 PROS Holdings, Inc. * (a) 84,845 887,479 Ultimate Software Group, Inc. * (a) 20,681 542,462 ------------ 5,183,810 ------------ Specialty Retail (2.3%) Aeropostale, Inc. * (a) 35,761 1,153,292 J Crew Group, Inc. * (a) 22,230 639,335 ------------ 1,792,627 ------------ Textiles Apparel & Luxury Goods (4.4%) Deckers Outdoor Corp. * (a) 6,502 734,791 Iconix Brand Group, Inc. * (a) 77,452 929,424 Skechers U.S.A., Inc., Class A * (a) 41,560 785,484 Warnaco Group, Inc. * (a) 24,470 1,026,516 ------------ 3,476,215 ------------ Transportation (1.8%) Aegean Marine Petroleum Network, Inc. (a) 38,309 1,386,786 ------------ Total Common Stocks 76,474,636 ------------ Investment Companies (28.2%) State Street Navigator Securities Lending Portfolio (c) 22,191,345 22,191,345 ------------ Total Investment Companies 22,191,345 ------------ Continued Shares Value ------------ ------------ Investments in Affiliates (2.4%) Fifth Third Institutional Money Market Fund (b) 1,920,211 $ 1,920,211 ------------ Total Investments in Affiliates 1,920,211 ------------ Total Investments (Cost $94,035,636) - 127.8% 100,586,192 Liabilities in excess of other assets - (27.8)% (21,893,234) ------------ NET ASSETS - 100.0% $ 78,692,958 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. 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. 64 Mid Cap Growth Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (98.4%) Aerospace & Defense (3.8%) BE Aerospace, Inc. * (a) 127,645 $ 3,277,924 Precision Castparts Corp. 43,537 4,067,662 Spirit Aerosystems Holdings, Inc., Class A * (a) 70,598 1,529,153 ------------ 8,874,739 ------------ Auto Components (1.5%) Wabco Holding, Inc. (a) 80,078 3,616,322 ------------ Biotechnology (1.2%) BioMarin Pharmaceuticals, Inc. * (a) 85,371 2,778,826 ------------ Capital Markets (3.7%) T Rowe Price Group, Inc. (a) 72,991 4,368,511 Waddell & Reed Financial, Inc., Class A 127,021 4,242,501 ------------ 8,611,012 ------------ Chemicals (3.8%) CF Industries Holdings, Inc. (a) 29,454 4,814,551 FMC Corp. (a) 56,515 4,203,021 ------------ 9,017,572 ------------ Commercial Services & Supplies (5.5%) Corrections Corp. of America * (a) 170,742 4,785,898 Manpower, Inc. (a) 56,515 2,712,720 Stericycle, Inc. * (a) 91,860 5,488,635 ------------ 12,987,253 ------------ Communications Equipment (1.9%) CommScope, Inc. * (a) 50,072 2,232,711 Juniper Networks, Inc. * (a) 84,404 2,197,036 ------------ 4,429,747 ------------ Computers & Peripherals (1.2%) Logitech International SA * 44,181 1,158,868 NetApp, Inc. * 68,297 1,744,988 ------------ 2,903,856 ------------ Containers & Packaging (1.4%) Owens-Illinois, Inc. * 76,489 3,230,895 ------------ Distributors (1.6%) LKQ Corp. * (a) 187,309 3,839,834 ------------ Diversified Consumer Services (1.9%) Apollo Group, Inc., Class A * 69,401 4,322,988 ------------ Diversified Financial Services (0.8%) IntercontinentalExchange, Inc. * (a) 18,869 1,883,126 ------------ Electric Utilities (1.4%) PPL Corp. (a) 70,598 3,315,282 ------------ Electrical Components & Equipment (1.2%) General Cable Corp. * (a) 48,323 2,784,854 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Electronic Equipment & Instruments (3.8%) Flir Systems, Inc. * (a) 44,534 $ 1,814,315 Itron, Inc. * 19,421 1,793,141 Mettler Toledo International, Inc. * 50,072 5,383,241 ------------ 8,990,697 ------------ Energy Equipment & Service (8.1%) Core Laboratories NV (a) 20,618 2,672,299 Exterran Holdings, Inc. * (a) 76,489 4,317,039 Noble Corp. 58,908 3,055,558 Oceaneering International, Inc. * (a) 70,598 4,281,063 Superior Energy Services, Inc. * (a) 95,910 4,549,011 Transocean, Inc. * 1 136 ------------ 18,875,106 ------------ Healthcare Equipment & Supplies (5.0%) Dentsply International, Inc. 107,139 4,312,345 Gen-Probe, Inc. * (a) 48,301 2,575,409 Hologic, Inc. * (a) 110,637 2,043,465 Varian Medical Systems, Inc. * (a) 47,127 2,827,620 ------------ 11,758,839 ------------ Healthcare Providers & Services (2.0%) Express Scripts, Inc. * 65,351 4,609,860 ------------ Hotels Restaurants & Leisure (2.9%) Burger King Holdings, Inc. (a) 173,687 4,660,022 International Game Technology (a) 96,554 2,096,187 ------------ 6,756,209 ------------ Household Durables (1.7%) Snap-On, Inc. (a) 72,255 4,067,234 ------------ Industrial Conglomerates (1.9%) McDermott International, Inc. * 94,161 4,488,655 ------------ Insurance (1.5%) ProAssurance Corp. * (a) 70,045 3,428,002 ------------ Internet Software & Services (0.7%) Akamai Technologies, Inc. * (a) 67,085 1,565,764 ------------ IT Services (1.0%) Cognizant Technology Solutions Corp., Class A * 40,039 1,123,895 Paychex, Inc. (a) 38,843 1,278,712 ------------ 2,402,607 ------------ Life Sciences Tools & Services (3.3%) PerkinElmer, Inc. (a) 161,261 4,692,695 Pharmaceutical Product Development, Inc. 77,133 2,941,853 ------------ 7,634,548 ------------ Machinery (5.5%) IDEX Corp. (a) 99,684 3,771,046 ITT Corp. (a) 58,264 3,901,357 Joy Global, Inc. 72,439 5,231,545 ------------ 12,903,948 ------------ Continued 65 Mid Cap Growth Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Metals/Mining (1.5%) Cleveland-Cliffs, Inc. 33,136 $ 3,592,274 ------------ Oil & Gas (3.3%) Range Resources Corp. 71,334 3,463,979 Ultra Petroleum Corp. * 60,657 4,329,697 ------------ 7,793,676 ------------ Personal Products (2.0%) Herbalife, Ltd. (a) 107,139 4,627,333 ------------ Real Estate Investment Trusts (0.8%) CapitalSource, Inc. (a) 154,266 1,792,571 ------------ Semiconductors & Semiconductor Equipment (4.6%) Broadcom Corp., Class A * (a) 75,476 1,833,312 Kla-Tencor Corp. (a) 60,565 2,276,638 Linear Technology Corp. (a) 74,556 2,314,964 MEMC Electronic Materials, Inc. * 16,625 768,241 Xilinx, Inc. (a) 141,288 3,508,181 ------------ 10,701,336 ------------ Software (7.9%) Activision Blizzard, Inc. * 135,377 4,870,865 Ansys, Inc. * (a) 47,127 2,162,187 Electronic Arts, Inc. * 59,641 2,575,298 Intuit, Inc. * (a) 134,200 3,667,686 Nuance Communications, Inc. * (a) 188,414 2,924,185 Salesforce.com, Inc. * (a) 34,701 2,213,577 ------------ 18,413,798 ------------ Specialty Retail (5.2%) GameStop Corp., Class A * (a) 74,556 3,020,264 Guess ?, Inc. (a) 91,860 2,909,206 J Crew Group, Inc. * (a) 67,652 1,945,672 Urban Outfitters, Inc. * (a) 131,899 4,353,986 ------------ 12,229,128 ------------ Textiles Apparel & Luxury Goods (1.2%) Warnaco Group, Inc. * (a) 68,849 2,888,216 ------------ Utilities (1.2%) NRG Energy, Inc. * (a) 79,434 2,882,660 ------------ Wireless Telecommunication Services (2.4%) American Tower Corp., Class A * 134,844 5,649,964 ------------ Total Common Stocks 230,648,731 ------------ Continued Shares Value ------------ ------------ Investment Companies (27.1%) State Street Navigator Securities Lending Portfolio (c) 63,530,259 $ 63,530,259 ------------ Total Investment Companies 63,530,259 ------------ Investments in Affiliates (2.0%) Fifth Third Institutional Money Market Fund (b) 4,690,601 4,690,601 ------------ Total Investments in Affiliates 4,690,601 ------------ Total Investments (Cost $287,739,620) - 127.5% 298,869,591 Liabilities in excess of other assets - (27.5)% (64,516,447) ------------ NET ASSETS - 100.0% $234,353,144 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. See notes to schedules of investments and notes to financial statements. 66 Quality Growth Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (96.6%) Aerospace & Defense (1.1%) United Technologies Corp. 80,527 $ 5,152,117 ------------ Auto Components (1.0%) Johnson Controls, Inc. 161,055 4,857,419 ------------ Biotechnology (2.1%) Gilead Sciences, Inc. * 189,476 10,227,914 ------------ Capital Markets (5.7%) BlackRock, Inc. (c) 33,158 7,185,670 Northern Trust Corp. (c) 142,107 11,108,504 T Rowe Price Group, Inc. (c) 146,844 8,788,614 ------------ 27,082,788 ------------ Chemicals (4.3%) Monsanto Co. 85,264 10,155,795 Praxair, Inc. (c) 108,949 10,211,790 ------------ 20,367,585 ------------ Commercial Services & Supplies (1.8%) Stericycle, Inc. * 142,107 8,490,893 ------------ Communications Equipment (5.3%) Cisco Systems, Inc. * 435,796 9,583,154 Qualcomm, Inc. 180,003 9,961,366 Research In Motion, Ltd. * 46,000 5,649,720 ------------ 25,194,240 ------------ Computers & Peripherals (6.6%) Apple, Inc. * 58,738 9,336,405 EMC Corp. * 236,845 3,555,044 Hewlett-Packard Co. 142,107 6,366,394 International Business Machines Corp. (c) 97,580 12,488,288 ------------ 31,746,131 ------------ Construction & Engineering (1.6%) Fluor Corp. 90,949 7,398,701 ------------ Diversified Financial Services (1.0%) JPMorgan Chase & Co. 123,160 5,003,991 ------------ Electric Utilities (1.4%) FPL Group, Inc. (c) 104,212 6,724,800 ------------ Electrical Components & Equipment (2.6%) Emerson Electric Co. 161,055 7,843,379 Roper Industries, Inc. (c) 75,791 4,636,893 ------------ 12,480,272 ------------ Energy Equipment & Service (4.6%) Nabors Industries, Ltd. * (c) 198,950 7,253,717 Transocean, Inc. * 59,685 8,118,951 Weatherford International, Ltd. * 180,003 6,791,513 ------------ 22,164,181 ------------ Food & Staples Retailing (1.3%) Kroger Co. (The) 227,372 6,430,080 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Food Products (3.6%) HJ Heinz Co. 142,107 $ 7,159,351 Kellogg Co. 189,476 10,053,596 ------------ 17,212,947 ------------ Healthcare Equipment & Supplies (5.5%) Alcon, Inc. 18,687 3,222,200 Baxter International, Inc. 150,000 10,291,500 Becton Dickinson & Co. 61,580 5,228,758 St Jude Medical, Inc. * (c) 165,792 7,722,591 ------------ 26,465,049 ------------ Hotels Restaurants & Leisure (3.8%) Burger King Holdings, Inc. 274,741 7,371,301 McDonald's Corp. 180,003 10,762,379 ------------ 18,133,680 ------------ Household Products (2.5%) Colgate-Palmolive Co. 71,054 5,277,181 Procter & Gamble Co. 99,475 6,513,623 ------------ 11,790,804 ------------ Insurance (1.0%) Aflac, Inc. (c) 85,264 4,741,531 ------------ Internet Software & Services (1.8%) Google, Inc., Class A * 18,000 8,527,500 ------------ IT Services (0.9%) Mastercard, Inc., Class A 17,053 4,163,490 ------------ Leisure Equipment & Products (1.3%) Hasbro, Inc. 161,055 6,236,050 ------------ Life Sciences Tools & Services (3.2%) Illumina, Inc. * (c) 65,000 6,060,600 Thermo Fisher Scientific, Inc. * 151,581 9,173,682 ------------ 15,234,282 ------------ Machinery (5.9%) Caterpillar, Inc. (c) 90,001 6,256,870 Danaher Corp. (c) 104,212 8,300,486 Flowserve Corp. 58,738 7,832,125 Illinois Tool Works, Inc. 127,897 5,991,974 ------------ 28,381,455 ------------ Medical-Biomedical/Genetics (1.0%) Alexion Pharmaceuticals, Inc. * 50,000 4,687,500 ------------ Metals & Mining (2.5%) Freeport-McMoRan Copper & Gold, Inc. (c) 61,580 5,957,865 United States Steel Corp. 37,895 6,076,842 ------------ 12,034,707 ------------ Multi-Utilities (1.3%) MDU Resources Group, Inc. 189,476 6,046,179 ------------ Continued 67 Quality Growth Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Oil & Gas (4.4%) Chevron Corp. 75,791 $ 6,408,887 Consol Energy, Inc. 83,370 6,201,894 Devon Energy Corp. 85,264 8,090,701 Occidental Petroleum Corp. 3,790 298,766 ------------ 21,000,248 ------------ Pharmaceuticals (3.9%) Abbott Laboratories 156,318 8,806,956 Johnson & Johnson 142,107 9,730,066 ------------ 18,537,022 ------------ Road & Rail (1.6%) Union Pacific Corp. 94,738 7,810,201 ------------ Semiconductors & Semiconductor Equipment (1.6%) Intel Corp. 350,531 7,778,283 ------------ Software (7.0%) Activision Blizzard, Inc. * 274,741 9,885,181 Microsoft Corp. 540,008 13,889,006 Oracle Corp. * 450,006 9,688,629 ------------ 33,462,816 ------------ Specialty Retail (2.4%) Best Buy Co., Inc. (c) 75,791 3,010,418 GameStop Corp., Class A * (c) 56,843 2,302,710 Urban Outfitters, Inc. * (c) 189,476 6,254,603 ------------ 11,567,731 ------------ Textiles Apparel & Luxury Goods (1.0%) Nike, Inc., Class B 85,264 5,003,292 ------------ Total Common Stocks 462,135,879 ------------ Investment Companies (7.4%) State Street Navigator Securities Lending Portfolio (f) 35,511,535 35,511,535 ------------ Total Investment Companies 35,511,535 ------------ Principal Amount ------------ Asset-Backed Securities (0.1%) Home Equity Other (0.1%) GMAC Mortgage Corp. Loan Trust, Series 2004-HE5, Class A4, 4.34%, 9/25/34 (a) $ 254,971 247,360 ------------ Manufactured Housing ABS Other (0.0%) Green Tree Financial Corp., Series 1995-4, Class M1, 7.60%, 6/15/25 (a) 189,919 192,491 ------------ Continued Principal Amount Value ------------ ------------ Asset-Backed Securities, continued Other ABS (0.0%) Aerco, Ltd., Series 2A, Class A3, 2.92%, 7/15/25 (a) (b) (e) $ 82,691 $ 63,672 ------------ Total Asset-Backed Securities 503,523 ------------ Corporate Bonds (0.0%) Commercial Banks-Central U.S. (0.0%) Bank One Capital III, 8.75%, 9/1/30 165,792 174,902 ------------ Total Corporate Bonds 174,902 ------------ Mortgage-Backed Securities (1.1%) WL Collateral CMO Other (1.0%) American Home Mortgage Investment Trust, Series 2005-2, Class 5A4D, 5.33%, 9/25/35 1,421,073 1,192,231 Banc of America Funding Corp., Series 2006-G, Class 3A2, 5.75%, 7/20/36 (a) 1,501,600 1,243,391 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 13A1, 5.45%, 2/25/36 (a) 756,031 663,540 Chaseflex Trust, Series 2006-1, Class A2A, 5.94%, 6/25/36 (a) 378,953 362,888 Indymac Index Mortgage Loan Trust, Series 2005-AR9, Class 1A1, 5.05%, 7/25/35 (a) 150,456 120,973 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.85%, 2/25/35 (a) 297,665 273,138 Morgan Stanley Mortgage Loan Trust, Series 2004-4, Class 3A, 5.00%, 8/25/19 568,749 555,774 WaMu Mortgage Pass Through Certificates, Series 2004-AR3, Class A2, 4.24%, 6/25/34 (a) 287,202 258,738 ------------ 4,670,673 ------------ WL Collateral CMO Sequential (0.1%) Countrywide Alternative Loan Trust, Series 2005-J3, Class 3A1, 6.50%, 9/25/34 169,056 155,943 Countrywide Alternative Loan Trust, Series 2005-74T1, Class A1, 6.00%, 1/25/36 316,353 238,649 ------------ 394,592 ------------ WL Collateral Support (0.0%) Bear Stearns Alt-A Trust, Series 2005-9, Class 21A2, 5.71%, 11/25/35 (a) 128,708 67,347 ------------ Total Mortgage-Backed Securities 5,132,612 ------------ Continued 68 Quality Growth Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ U.S. Government Agencies (0.1%) Fannie Mae (0.1%) 6.00%, 8/25/33 (a) $ 334,597 $ 309,875 5.50%, 4/25/37 239,595 211,395 ------------ 521,270 ------------ Freddie Mac (0.0%) 5.50%, 3/15/35 222,635 215,843 ------------ Government National Mortgage Association (0.0%) 0.55%, 4/16/46, , IO (a) (b) (e) 3,163,528 105,042 ------------ Total U.S. Government Agencies 842,155 ------------ Shares ------------ Investments in Affiliates (3.9%) Fifth Third Institutional Money Market Fund (d) 18,534,723 18,534,723 ------------ Total Investments in Affiliates 18,534,723 ------------ Total Investments (Cost $447,741,256) - 109.2% 522,835,329 Liabilities in excess of other assets - (9.2)% (44,235,638) ------------ NET ASSETS - 100.0% $478,599,691 ============ Notes to Schedule of Investments * Non-income producing security. (a) Variable rate security. Rate presented represents rate in effect at July 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) All or part of this security was on loan. (d) Investment is in Institutional Shares of underlying fund. (e) The Fund's securities were fair valued at July 31, 2008 using procedures approved by the Board of Trustees. (f) Represents investments of cash collateral received in connection with securities lending. The following abbreviations are used in the Schedule of Investments: ABS - Asset-Backed Security CMO - Collateralized Mortgage Obligation IO - Interest Only WL - Whole Loan See notes to schedules of investments and notes to financial statements. Dividend Growth Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (99.5%) Aerospace & Defense (5.1%) General Dynamics Corp. (a) 5,052 $ 450,335 United Technologies Corp. 9,046 578,763 ------------ 1,029,098 ------------ Air Freight & Logistics (0.8%) CH Robinson Worldwide, Inc. (a) 3,552 171,206 ------------ Auto Components (1.2%) BorgWarner, Inc. (a) 5,882 237,162 ------------ Beverages (4.9%) Coca-Cola Co. (The) (a) 4,508 232,162 Diageo PLC ADR 4,595 323,395 Hansen National Corp. * (a) 3,025 69,151 PepsiCo, Inc. 5,476 364,483 ------------ 989,191 ------------ Biotechnology (3.1%) Celgene Corp. * (a) 4,841 365,447 Genentech, Inc. * (a) 2,783 265,081 ------------ 630,528 ------------ Capital Markets (4.6%) Charles Schwab Corp. (The) (a) 11,921 272,872 Franklin Resources, Inc. (a) 2,095 210,778 Northern Trust Corp. (a) 3,328 260,150 State Street Corp. 2,391 171,291 ------------ 915,091 ------------ Chemicals (2.8%) Ecolab, Inc. (a) 5,597 250,186 Praxair, Inc. (a) 3,325 311,652 ------------ 561,838 ------------ Commercial Banks (5.6%) PNC Financial Services Group, Inc. (a) 2,569 183,144 US Bancorp (a) 16,613 508,524 Wells Fargo & Co. (a) 14,522 439,581 ------------ 1,131,249 ------------ Communications Equipment (3.8%) Qualcomm, Inc. 8,492 469,947 Research In Motion, Ltd. * (a) 2,391 293,663 ------------ 763,610 ------------ Computers & Peripherals (3.0%) Apple, Inc. * 2,109 335,225 Hewlett-Packard Co. (a) 5,840 261,632 ------------ 596,857 ------------ Diversified Financial Services (3.3%) Bank of America Corp. (a) 8,187 269,352 Citigroup, Inc. (a) 6,203 115,934 JPMorgan Chase & Co. 7,050 286,442 ------------ 671,728 ------------ Continued 69 Dividend Growth Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Electrical Components & Equipment (3.9%) Emerson Electric Co. 11,860 $ 577,582 Roper Industries, Inc. (a) 3,298 201,772 ------------ 779,354 ------------ Energy Equipment & Service (1.9%) Schlumberger, Ltd. 3,782 384,251 ------------ Food & Staples Retailing (4.0%) Costco Wholesale Corp. (a) 3,237 202,896 CVS Caremark Corp. 7,993 291,743 Wal-Mart Stores, Inc. (a) 5,095 298,669 ------------ 793,308 ------------ Food Products (1.1%) Kellogg Co. 4,145 219,934 ------------ Healthcare Equipment & Supplies (7.0%) Becton Dickinson & Co. 5,446 462,420 Dentsply International, Inc. (a) 9,388 377,867 Medtronic, Inc. 3,688 194,837 Stryker Corp. (a) 5,627 361,197 ------------ 1,396,321 ------------ Healthcare Providers & Services (1.0%) Aetna, Inc. 4,992 204,722 ------------ Hotels Restaurants & Leisure (2.3%) Carnival Corp. (a) 4,089 151,048 McDonald's Corp. (a) 5,294 316,528 ------------ 467,576 ------------ Household Products (2.5%) Procter & Gamble Co. 7,543 493,916 ------------ Industrial Conglomerates (1.6%) General Electric Co. 11,618 328,673 ------------ Insurance (3.3%) MetLife, Inc. 7,231 367,118 Prudential Financial, Inc. (a) 4,205 290,019 ------------ 657,137 ------------ IT Services (0.9%) Fiserv, Inc. * (a) 3,963 189,511 ------------ Media (1.5%) Comcast Corp., Class A (a) 14,626 301,588 ------------ Metals & Mining (1.2%) Freeport-McMoRan Copper & Gold, Inc. (a) 2,514 243,230 ------------ Multiline Retail (0.9%) Kohl's Corp. * (a) 4,356 182,560 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Oil & Gas (9.6%) Apache Corp. (a) 2,178 $ 244,306 Chevron Corp. (a) 4,266 360,733 Exxon Mobil Corp. 10,286 827,303 Marathon Oil Corp. 4,236 209,555 XTO Energy, Inc. (a) 5,854 276,485 ------------ 1,918,382 ------------ Pharmaceuticals (4.7%) Abbott Laboratories 5,759 324,462 Allergan, Inc. (a) 5,385 279,643 Johnson & Johnson (a) 4,870 333,449 ------------ 937,554 ------------ Road & Rail (1.0%) Canadian Pacific Railway, Ltd. 3,176 199,485 ------------ Semiconductors & Semiconductor Equipment (5.9%) Intel Corp. (a) 15,581 345,742 Intersil Corp., Class A (a) 11,406 275,227 Microchip Technology, Inc. (a) 10,246 327,155 Xilinx, Inc. (a) 9,525 236,506 ------------ 1,184,630 ------------ Software (1.6%) Oracle Corp. * 14,581 313,929 ------------ Textiles Apparel & Luxury Goods (3.4%) Nike, Inc., Class B (a) 5,022 294,691 VF Corp. (a) 5,484 392,545 ------------ 687,236 ------------ Tobacco (2.0%) Philip Morris International, Inc. 7,731 399,306 ------------ Total Common Stocks 19,980,161 ------------ Investment Companies (26.6%) State Street Navigator Securities Lending Portfolio (c) 5,344,714 5,344,714 ------------ Total Investment Companies 5,344,714 ------------ Investments in Affiliates (0.5%) Fifth Third Institutional Money Market Fund (b) 93,723 93,723 ------------ Total Investments in Affiliates 93,723 ------------ Continued 70 Dividend Growth Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Value ------------ Total Investments (Cost $24,154,481) - 126.6% $ 25,418,598 Liabilities in excess of other assets - (26.6)% (5,335,998) ------------ NET ASSETS - 100.0% $ 20,082,600 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. 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. Micro Cap Value Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (94.9%) Aerospace & Defense (2.1%) Ducommun, Inc. * (a) 14,390 $ 394,430 LMI Aerospace, Inc. * (a) 22,253 411,013 ------------ 805,443 ------------ Biotechnology (1.1%) Emergent Biosolutions, Inc. * (a) 30,028 404,477 ------------ Capital Markets (4.4%) Gladstone Capital Corp. (a) 22,261 367,529 MVC Capital, Inc. 9,286 130,747 Penson Worldwide, Inc. * 25,481 469,360 Sanders Morris Harris Group, Inc. (a) 41,209 319,370 SWS Group, Inc. (a) 20,960 396,563 ------------ 1,683,569 ------------ Commercial Banks (10.9%) Bank of Florida Corp. * (a) 22,661 148,203 Center Bancorp, Inc. 33,062 317,726 Center Financial Corp. (a) 30,260 332,860 First Merchants Corp. (a) 17,290 363,090 First State Bancorporation (a) 41,512 211,711 MainSource Financial Group, Inc. (a) 24,978 445,858 Northrim BanCorp, Inc. (a) 15,100 240,392 Old Second Bancorp, Inc. (a) 24,000 365,280 Pacific Continental Corp. (a) 24,700 279,110 Renasant Corp. (a) 20,190 357,565 Rurban Financial Corp. 10,876 111,370 Simmons First National Corp., Class A (a) 16,341 486,145 Southcoast Financial Corp. * 9,572 114,481 Washington Trust Bancorp, Inc. 15,065 359,752 ------------ 4,133,543 ------------ Commercial Services & Supplies (5.0%) Barrett Business Services, Inc. (a) 30,174 496,061 CBIZ, Inc. * (a) 41,655 341,154 ICT Group, Inc. * (a) 32,256 258,693 Schawk, Inc., Class A (a) 27,103 350,442 Spherion Corp.* 52,100 254,769 Standard Register Co. (The) (a) 20,516 181,156 ------------ 1,882,275 ------------ Communications Equipment (2.1%) Radyne Corp. * 30,795 353,835 Symmetricom, Inc. * (a) 94,520 456,532 ------------ 810,367 ------------ Computers & Peripherals (1.2%) ActivIdentity Corp. * (a) 52,655 135,850 Dot Hill Systems Corp. * 116,576 307,761 ------------ 443,611 ------------ Continued 71 Micro Cap Value Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Construction Materials (1.1%) Headwaters, Inc. * (a) 31,080 $ 407,459 ------------ Distributors (0.9%) Audiovox Corp., Class A * (a) 36,308 331,492 ------------ Diversified Financial Services (1.2%) NGP Capital Resources Co.(a) 27,952 454,220 ------------ Diversified Telecommunication Services (1.3%) D&E Communications, Inc. (a) 19,422 173,050 Iowa Telecommunications Services, Inc. (a) 17,600 326,304 ------------ 499,354 ------------ Electronic Equipment & Instruments (6.5%) Agilysys, Inc. (a) 29,864 358,368 CTS Corp. (a) 23,538 302,699 GSI Group, Inc. * 47,817 248,648 OSI Systems, Inc. * (a) 17,072 359,707 PAR Technology Corp. * (a) 56,585 462,299 TTM Technologies, Inc. * 38,474 432,832 Zygo Corp. * (a) 27,942 302,053 ------------ 2,466,606 ------------ Energy Equipment & Services (1.4%) Mitcham Industries, Inc. * (a) 18,400 282,992 Trico Marine Services, Inc. * (a) 9,773 249,407 ------------ 532,399 ------------ Food & Staples Retailing (0.9%) Nash Finch Co. (a) 8,420 332,337 ------------ Food Products (3.1%) B&G Foods, Inc., Class A (a) 30,633 272,634 Monterey Gourmet Foods, Inc. * (a) 61,076 101,386 Overhill Farms, Inc. * 73,628 705,356 Tasty Baking Co. (a) 22,479 104,752 ------------ 1,184,128 ------------ Gas-Distribution (0.8%) Chesapeake Utilities Corp. (a) 10,915 312,060 ------------ Healthcare Equipment & Supplies (3.9%) Datascope Corp. (a) 9,323 435,198 Greatbatch, Inc. * (a) 21,750 445,005 Medical Action Industries, Inc. * (a) 34,983 347,731 National Dentex Corp. * 26,401 265,330 ------------ 1,493,264 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Healthcare Providers & Services (2.7%) American Dental Partners, Inc. * (a) 21,614 $ 220,679 Cross Country Healthcare, Inc. * (a) 27,290 435,276 Res-Care, Inc. * (a) 20,120 369,403 ------------ 1,025,358 ------------ Hotels Restaurants & Leisure (3.1%) Benihana, Inc. * 3,830 25,508 Benihana, Inc., Class A * 37,778 251,979 Bluegreen Corp. * (a) 52,770 609,494 Frisch's Restaurants, Inc. 6,646 139,765 Steak N Shake Co. (The) * (a) 22,499 155,018 ------------ 1,181,764 ------------ Household Durables (0.5%) La-Z-Boy, Inc. (a) 24,625 181,732 ------------ Insurance (3.0%) Amerisafe, Inc. * 20,141 365,962 Fpic Insurance Group, Inc. * (a) 6,270 313,186 Procentury Corp. 10,433 171,623 SeaBright Insurance Holdings, Inc. * (a) 25,072 288,328 ------------ 1,139,099 ------------ Internet Software & Services (0.6%) Vignette Corp. * (a) 20,644 232,451 ------------ IT Services (3.0%) Ciber, Inc. *(a) 74,887 529,451 Ness Technologies, Inc. *(a) 48,384 598,510 ------------ 1,127,961 ------------ Machinery (2.4%) Flanders Corp. * (a) 69,774 438,878 NN, Inc. (a) 18,565 247,286 Trimas Corp. * (a) 30,900 211,047 ------------ 897,211 ------------ Marine (1.4%) Stealthgas, Inc. (a) 36,193 542,895 ------------ Multiline Retail (0.6%) Tuesday Morning Corp. * 65,941 253,213 ------------ Oil & Gas (1.9%) Callon Petroleum Co. * (a) 16,844 387,244 Gulfport Energy Corp. * (a) 24,000 346,080 ------------ 733,324 ------------ Paper & Forest Products (0.9%) Schweitzer-Mauduit International, Inc. (a) 18,473 343,783 ------------ Continued 72 Micro Cap Value Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Real Estate Investment Trusts (3.6%) Hersha Hospitality Trust, A Shares (a) 77,981 $ 553,665 MHI Hospitality Corp. (a) 35,120 183,326 Monmouth Real Estate Investment Corp., Class A (a) 40,943 295,199 U-Store-It Trust (a) 29,460 343,209 ------------ 1,375,399 ------------ Road & Rail (4.1%) Celadon Group, Inc. * (a) 36,830 487,261 Marten Transport, Ltd. * 20,385 424,416 Saia, Inc. * (a) 24,250 424,375 USA Truck, Inc. * 14,800 236,504 ------------ 1,572,556 ------------ Semiconductors & Semiconductor Equipment (6.4%) Applied Micro Circuits Corp. * (a) 44,690 346,794 AXT, Inc. * (a) 56,200 220,304 IXYS Corp. * 29,648 362,892 Nanometrics, Inc. * 30,436 133,005 Rudolph Technologies, Inc. * (a) 34,214 298,688 Semitool, Inc. * (a) 58,597 525,615 Ultratech, Inc. * (a) 17,444 257,125 White Electronic Designs Corp. * (a) 59,811 280,514 ------------ 2,424,937 ------------ Software (0.9%) Secure Computing Corp. * (a) 86,810 341,163 ------------ Specialty Retail (5.0%) Casual Male Retail Group, Inc. * (a) 75,680 307,261 Charlotte Russe Holdings, Inc. * (a) 21,782 282,295 Jo-Ann Stores, Inc. * (a) 24,385 535,738 Monro Muffler, Inc. (a) 28,848 525,322 Stein Mart, Inc. (a) 57,064 255,076 ------------ 1,905,692 ------------ Thrifts & Mortgage Finance (6.0%) American Bancorp of New Jersey (a) 31,662 315,354 B of I Holding, Inc. * 46,762 328,737 Benjamin Franklin Bancorp, Inc. (a) 19,441 220,461 Berkshire Hills Bancorp, Inc. (a) 19,090 505,885 Citizens Community Bancorp, Inc. 18,769 159,161 First Clover Leaf Financial Corp. (a) (d) 19,567 178,451 United Western Bancorp, Inc. (a) 22,247 266,297 WSFS Financial Corp. (a) 5,860 319,077 ------------ 2,293,423 ------------ Trading Companies & Distributors (0.9%) Aceto Corp. (a) 45,822 344,581 ------------ Total Common Stocks 36,093,146 ------------ Continued Shares Value ------------ ------------ Investment Companies (28.8%) State Street Navigator Securities Lending Portfolio (c) 10,927,545 $ 10,927,545 ------------ Total Investment Companies 10,927,545 ------------ Investments in Affiliates (4.4%) Fifth Third Institutional Money Market Fund (b) 1,663,530 1,663,530 ------------ Total Investments in Affiliates 1,663,530 ------------ Total Investments (Cost $49,795,585) - 128.1% 48,684,221 Liabilities in excess of other assets - (28.1)% (10,689,290) ------------ NET ASSETS - 100.0% $ 37,994,931 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. (d) Illiquid Securities. See notes to schedules of investments and notes to financial statements. 73 Small Cap Value Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (96.7%) Aerospace & Defense (1.4%) AAR Corp. * (a) 70,331 $ 1,208,990 ------------ Beverages (1.1%) PepsiAmericas, Inc. (a) 41,446 981,027 ------------ Capital Markets (2.2%) Apollo Investment Corp. (a) 65,548 1,044,180 Gladstone Capital Corp. (a) 58,183 960,601 ------------ 2,004,781 ------------ Chemicals (3.6%) Ferro Corp. (a) 83,845 1,824,467 PolyOne Corp. * (a) 190,503 1,428,773 ------------ 3,253,240 ------------ Commercial Banks (10.7%) Community Bank System, Inc. (a) 69,923 1,650,183 MainSource Financial Group, Inc. (a) 80,877 1,443,654 Old National Bancorp (a) 108,147 1,641,672 Renasant Corp. (a) 69,951 1,238,832 UMB Financial Corp. (a) 36,391 2,004,052 United Bankshares, Inc. (a) 61,487 1,548,858 ------------ 9,527,251 ------------ Commercial Services & Supplies (1.5%) Schawk, Inc., Class A (a) 101,585 1,313,494 ------------ Communications Equipment (1.9%) ADC Telecommunications, Inc. * (a) 110,411 1,044,488 Extreme Networks, Inc. * (a) 231,884 679,420 ------------ 1,723,908 ------------ Construction & Engineering (1.7%) MasTec, Inc. * (a) 108,245 1,553,316 ------------ Construction Materials (1.6%) Headwaters, Inc. * (a) 109,465 1,435,086 ------------ Diversified Consumer Services (1.4%) Stewart Enterprises, Inc., Class A (a) 141,800 1,263,438 ------------ Diversified Telecommunication Services (2.4%) Iowa Telecommunications Services, Inc. (a) 116,739 2,164,341 ------------ Electric Utilities (3.6%) Cleco Corp. (a) 66,034 1,659,435 Westar Energy, Inc. (a) 68,817 1,519,479 ------------ 3,178,914 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Electrical Components & Equipment (1.7%) EnerSys * (a) 45,785 $ 1,477,940 ------------ Electronic Equipment & Instruments (1.7%) CTS Corp. (a) 114,732 1,475,454 ------------ Energy Equipment & Services (3.6%) CARBO Ceramics, Inc. (a) 26,391 1,444,116 Oil States International, Inc. * (a) 18,660 1,024,061 Trico Marine Services, Inc. * (a) 30,889 788,287 ------------ 3,256,464 ------------ Food & Staples Retailing (1.8%) Casey's General Stores, Inc. (a) 65,544 1,612,382 ------------ Healthcare Providers & Services (3.8%) Kindred Healthcare, Inc. * 69,505 1,874,550 Molina Healthcare, Inc. * (a) 51,481 1,536,193 ------------ 3,410,743 ------------ Hotels Restaurants & Leisure (1.7%) Bluegreen Corp. * (a) 134,924 1,558,372 ------------ Household Durables (1.3%) La-Z-Boy, Inc. (a) 156,567 1,155,464 ------------ Insurance (3.3%) Endurance Specialty Holdings, Ltd. (a) 36,713 1,123,418 Platinum Underwriters Holdings, Ltd. (a) 50,127 1,809,584 ------------ 2,933,002 ------------ IT Services (1.5%) Perot Systems Corp., Class A * (a) 82,313 1,376,273 ------------ Machinery (7.0%) Albany International Corp., Class A (a) 49,487 1,420,277 EnPro Industries, Inc. * (a) 49,724 1,790,561 Toro Co. (a) 37,014 1,204,806 Trinity Industries, Inc. (a) 47,715 1,795,992 ------------ 6,211,636 ------------ Marine (1.1%) Alexander & Baldwin, Inc. (a) 22,728 986,168 ------------ Metals & Mining (1.4%) Coeur d'Alene Mines Corp. * (a) 432,640 1,250,330 ------------ Multiline Retail (1.3%) Dollar Tree, Inc. * 29,880 1,120,500 ------------ Continued 74 Small Cap Value Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Multi-Utilities (1.9%) Vectren Corp. (a) 57,573 $ 1,681,132 ------------ Oil & Gas (2.4%) Rosetta Resources, Inc. * (a) 44,900 1,060,538 Tsakos Energy Navigation, Ltd. 32,212 1,113,891 ------------ 2,174,429 ------------ Paper & Forest Products (1.8%) Schweitzer-Mauduit International, Inc. (a) 87,391 1,626,346 ------------ Pharmaceuticals (2.4%) Biovail Corp. 96,239 976,826 Par Pharmaceutical Cos., Inc. * (a) 69,736 1,206,433 ------------ 2,183,259 ------------ Real Estate Investment Trusts (4.2%) LaSalle Hotel Properties (a) 58,265 1,323,198 U-Store-It Trust (a) 135,714 1,581,068 Weingarten Realty Investors (a) 27,563 840,396 ------------ 3,744,662 ------------ Road & Rail (3.4%) Marten Transport, Ltd. * 75,613 1,574,263 Werner Enterprises, Inc. (a) 63,019 1,500,482 ------------ 3,074,745 ------------ Semiconductors & Semiconductor Equipment (4.8%) Cabot Microelectronics Corp. * (a) 42,103 1,643,701 Semitool, Inc. * (a) 155,254 1,392,628 Teradyne, Inc. * (a) 135,318 1,267,930 ------------ 4,304,259 ------------ Software (2.3%) Sybase, Inc. * (a) 61,297 2,060,192 ------------ Specialty Retail (4.2%) American Eagle Outfitters, Inc. (a) 58,282 815,948 Group 1 Automotive, Inc. (a) 43,669 858,096 Jo-Ann Stores, Inc. * (a) 42,730 938,778 Monro Muffler, Inc. (a) 60,754 1,106,330 ------------ 3,719,152 ------------ Textiles Apparel & Luxury Goods (2.5%) Brown Shoe Co., Inc. (a) 75,275 1,214,939 Phillips-Van Heusen Corp. (a) 28,796 1,019,378 ------------ 2,234,317 ------------ Thrifts & Mortgage Finance (1.8%) NewAlliance Bancshares, Inc. (a) 127,052 1,649,135 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Trading Companies & Distributors (0.7%) United Rentals, Inc. * (a) 36,145 $ 584,826 ------------ Total Common Stocks 86,468,968 ------------ Investment Companies (28.8%) State Street Navigator Securities Lending Portfolio (c) 25,743,204 25,743,204 ------------ Total Investment Companies 25,743,204 ------------ Investments in Affiliates (3.8%) Fifth Third Institutional Money Market Fund (b) 3,376,965 3,376,965 ------------ Total Investments in Affiliates 3,376,965 ------------ Total Investments (Cost $114,437,537) - 129.3% 115,589,137 ------------ Liabilities in excess of other assets - (29.3)% (26,226,449) ------------ NET ASSETS - 100.0% $ 89,362,688 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. See notes to schedules of investments and notes to financial statements. 75 All Cap Value Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (97.7%) Aerospace & Defense (3.5%) AAR Corp. * (a) 129,905 $ 2,233,067 General Dynamics Corp. 29,258 2,608,058 Honeywell International, Inc. 35,111 1,785,043 United Technologies Corp. (a) 29,257 1,871,863 ------------ 8,498,031 ------------ Auto Components (0.3%) Autoliv, Inc. (a) 17,554 685,308 ------------ Beverages (0.6%) Coca-Cola Enterprises, Inc. (a) 78,995 1,337,385 ------------ Biotechnology (2.0%) Amgen, Inc. * 79,580 4,984,095 ------------ Capital Markets (5.0%) Bank of New York Mellon Corp. (The) 75,741 2,688,806 Goldman Sachs Group, Inc. (The) (a) 29,259 5,384,826 Lazard, Ltd., Class A (a) 29,260 1,194,101 Legg Mason, Inc. (a) 71,390 2,880,586 ------------ 12,148,319 ------------ Chemicals (3.2%) Dow Chemical Co. (The) 70,221 2,339,062 E.I. du Pont de Nemours & Co. (a) 70,221 3,076,382 Lubrizol Corp. (a) 46,813 2,331,287 ------------ 7,746,731 ------------ Commercial Banks (3.5%) Comerica, Inc. (a) 46,811 1,344,412 Marshall & Ilsley Corp. (a) 84,850 1,289,720 Old National Bancorp (a) 58,515 888,258 SunTrust Banks, Inc. (a) 35,108 1,441,534 United Bankshares, Inc. (a) 30,430 766,532 US Bancorp (a) 87,775 2,686,793 ------------ 8,417,249 ------------ Commercial Services & Supplies (1.9%) ICT Group, Inc. * (a) 99,475 797,789 Manpower, Inc. (a) 23,405 1,123,440 Pitney Bowes, Inc. (a) 52,666 1,668,986 Standard Register Co. (The) (a) 116,196 1,026,011 ------------ 4,616,226 ------------ Communications Equipment (0.5%) Symmetricom, Inc. * (a) 234,064 1,130,529 ------------ Computers & Peripherals (2.9%) International Business Machines Corp. (a) 36,865 4,717,983 SanDisk Corp. * (a) 104,745 1,476,904 Seagate Technology 58,515 875,970 ------------ 7,070,857 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Consumer Finance (0.8%) Discover Financial Services (a) 131,660 $ 1,928,819 ------------ Diversified Financial Services (6.7%) Bank of America Corp. (a) 163,846 5,390,533 Citigroup, Inc. (a) 222,360 4,155,908 JPMorgan Chase & Co. 165,598 6,728,247 ------------ 16,274,688 ------------ Diversified Telecommunication Services (3.9%) AT&T, Inc. 87,775 2,704,348 Qwest Communications International, Inc. (a) 327,690 1,255,052 Verizon Communications, Inc. 99,475 3,386,129 Windstream Corp. (a) 179,465 2,139,223 ------------ 9,484,752 ------------ Electric Utilities (3.9%) American Electric Power Co., Inc. 58,518 2,311,461 Duke Energy Corp. 64,365 1,131,537 Edison International 43,887 2,121,498 FPL Group, Inc. 29,257 1,887,954 Pepco Holdings, Inc. 81,924 2,043,184 ------------ 9,495,634 ------------ Electronic Equipment & Instruments (0.7%) Avnet, Inc. * (a) 29,257 797,546 Vishay Intertechnology, Inc. * 87,773 787,324 ------------ 1,584,870 ------------ Energy Equipment & Service (4.6%) ENSCO International, Inc. (a) 23,405 1,618,222 Nabors Industries, Ltd. * (a) 142,780 5,205,759 Tidewater, Inc. (a) 52,664 3,156,680 Trico Marine Services, Inc. * (a) 43,885 1,119,945 ------------ 11,100,606 ------------ Food & Staples Retailing (2.0%) Safeway, Inc. (a) 102,401 2,736,155 SUPERVALU, Inc. (a) 87,775 2,248,795 ------------ 4,984,950 ------------ Food Products (3.6%) ConAgra Foods, Inc. (a) 108,252 2,346,903 Kraft Foods, Inc., Class A 118,789 3,779,866 Tyson Foods, Inc., Class A (a) 175,550 2,615,695 ------------ 8,742,464 ------------ Healthcare Providers & Services (2.5%) Laboratory Corp. of America Holdings * (a) 26,333 1,779,584 Continued 76 All Cap Value Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Healthcare Providers & Services, continued Lincare Holdings, Inc. * (a) 17,554 $ 565,590 Omnicare, Inc. (a) 21,945 646,061 UnitedHealth Group, Inc. 110,010 3,089,081 ------------ 6,080,316 ------------ Hotels Restaurants & Leisure (2.3%) Bob Evans Farms, Inc. (a) 33,354 955,259 Carnival Corp. (a) 63,195 2,334,423 Darden Restaurants, Inc. (a) 73,145 2,382,333 ------------ 5,672,015 ------------ Household Durables (2.6%) Snap-On, Inc. (a) 26,334 1,482,341 Stanley Works (The) (a) 43,887 1,952,094 Tupperware Brands Corp. (a) 76,070 2,966,730 ------------ 6,401,165 ------------ Industrial Conglomerates (2.9%) 3M Co. 43,887 3,089,206 General Electric Co. 138,098 3,906,792 ------------ 6,995,998 ------------ Insurance (7.0%) Allstate Corp. (The) 52,662 2,434,038 American International Group, Inc. (a) 114,106 2,972,461 Hartford Financial Services Group, Inc. (a) 58,516 3,709,329 MetLife, Inc. (a) 52,662 2,673,650 Prudential Financial, Inc. 47,985 3,309,525 Travelers Cos., Inc. (The) 40,960 1,807,155 ------------ 16,906,158 ------------ IT Services (0.8%) Computer Sciences Corp. * (a) 42,129 1,995,651 ------------ Leisure Equipment & Products (0.5%) Mattel, Inc. 64,365 1,290,518 ------------ Machinery (3.5%) Caterpillar, Inc. (a) 40,963 2,847,748 Dover Corp. 23,405 1,161,590 Joy Global, Inc. 23,405 1,690,309 Pall Corp. 67,294 2,720,023 ------------ 8,419,670 ------------ Media (1.5%) Time Warner, Inc. 130,490 1,868,617 Viacom, Inc., Class B * 63,195 1,765,036 ------------ 3,633,653 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Metals & Mining (1.2%) Alcoa, Inc. (a) 87,775 $ 2,962,406 ------------ Multiline Retail (0.4%) Dollar Tree, Inc. * 29,260 1,097,250 ------------ Multi-Utilities (0.4%) NiSource, Inc. (a) 52,662 899,467 ------------ Oil & Gas (11.7%) Anadarko Petroleum Corp. 42,132 2,439,864 Chevron Corp. 58,518 4,948,282 ConocoPhillips (a) 78,995 6,447,572 Exxon Mobil Corp. 76,073 6,118,551 Marathon Oil Corp. (a) 128,735 6,368,521 Spectra Energy Corp. 32,185 874,466 Sunoco, Inc. (a) 29,845 1,212,006 ------------ 28,409,262 ------------ Pharmaceuticals (4.7%) Forest Laboratories, Inc. * 45,640 1,620,676 Johnson & Johnson (a) 43,887 3,004,943 Pfizer, Inc. 117,031 2,184,969 Schering-Plough Corp. (a) 127,565 2,689,070 Wyeth 46,815 1,896,944 ------------ 11,396,602 ------------ Real Estate Investment Trusts (0.6%) Duke Realty Corp. (a) 58,515 1,447,076 ------------ Road & Rail (0.8%) Union Pacific Corp. (a) 23,408 1,929,756 ------------ Semiconductors & Semiconductor Equipment (2.5%) Applied Materials, Inc. 175,550 3,040,526 Cabot Microelectronics Corp. * 51,494 2,010,326 International Rectifier Corp. * (a) 62,610 1,056,857 ------------ 6,107,709 ------------ Software (0.4%) Cadence Design Systems, Inc. * (a) 117,030 864,852 ------------ Textiles Apparel & Luxury Goods (0.7%) Jones Apparel Group, Inc. (a) 102,405 1,714,260 ------------ Thrifts & Mortgage Finance (0.8%) New York Community Bancorp, Inc. (a) 117,031 1,945,055 ------------ Tobacco (0.3%) UST, Inc. (a) 14,631 769,737 ------------ Total Common Stocks 237,170,089 ------------ Continued 77 All Cap Value Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investment Companies (27.2%) State Street Navigator Securities Lending Portfolio (c) 66,082,044 $ 66,082,044 ------------ Total Investment Companies 66,082,044 ------------ Investments in Affiliates (2.4%) Fifth Third Institutional Money Market Fund (b) 5,916,928 5,916,928 ------------ Total Investments in Affiliates 5,916,928 ------------ Total Investments (Cost $297,825,734) - 127.3% 309,169,061 Liabilities in excess of other assets - (27.3)% (66,378,446) ------------ NET ASSETS - 100.0% $242,790,615 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. See notes to schedules of investments and notes to financial statements. Disciplined Large Cap Value Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (97.0%) Aerospace & Defense (1.8%) Northrop Grumman Corp. 71,021 $ 4,786,105 United Technologies Corp. 71,021 4,543,924 ------------ 9,330,029 ------------ Beverages (0.8%) Anheuser-Busch Cos., Inc. (a) 62,143 4,210,810 ------------ Biotechnology (2.7%) Amgen, Inc. * 216,613 13,566,472 ------------ Capital Markets (1.1%) Morgan Stanley 142,041 5,607,779 ------------ Chemicals (2.4%) Dow Chemical Co. (The) 275,205 9,167,079 E.I. du Pont de Nemours & Co. 71,021 3,111,430 ------------ 12,278,509 ------------ Commercial Banks (2.8%) Marshall & Ilsley Corp. (a) 284,083 4,318,062 SunTrust Banks, Inc. (a) 142,041 5,832,203 Wells Fargo & Co. 141,353 4,278,755 ------------ 14,429,020 ------------ Commercial Services & Supplies (2.5%) Pitney Bowes, Inc. (a) 221,940 7,033,279 RR Donnelley & Sons Co. 213,063 5,688,782 ------------ 12,722,061 ------------ Computers & Peripherals (2.1%) International Business Machines Corp. 42,613 5,453,612 Seagate Technology 355,104 5,315,907 ------------ 10,769,519 ------------ Consumer Finance (0.8%) Discover Financial Services 284,083 4,161,816 ------------ Diversified Financial Services (7.4%) Bank of America Corp. 450,564 14,823,556 Citigroup, Inc. 609,003 11,382,266 JPMorgan Chase & Co. 286,569 11,643,298 ------------ 37,849,120 ------------ Diversified Telecommunication Services (5.4%) AT&T, Inc. 399,492 12,308,348 Qwest Communications International, Inc. (a) 1,313,885 5,032,180 Windstream Corp. 870,004 10,370,448 ------------ 27,710,976 ------------ Electric Utilities (1.2%) Edison International 120,735 5,836,330 ------------ Continued 78 Disciplined Large Cap Value Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Energy Equipment & Service (2.2%) ENSCO International, Inc. 62,143 $ 4,296,567 Halliburton Co. 151,985 6,811,968 ------------ 11,108,535 ------------ Food Products (2.9%) Kraft Foods, Inc., Class A (a) 470,867 14,982,988 ------------ Healthcare Providers & Services (1.3%) UnitedHealth Group, Inc. (a) 241,471 6,780,506 ------------ Hotels Restaurants & Leisure (2.9%) Carnival Corp. 195,308 7,214,677 Darden Restaurants, Inc. (a) 239,695 7,806,866 ------------ 15,021,543 ------------ Household Durables (0.8%) Fortune Brands, Inc. (a) 67,361 3,860,459 ------------ Industrial Conglomerates (3.7%) 3M Co. 88,776 6,248,943 General Electric Co. 443,880 12,557,365 ------------ 18,806,308 ------------ Insurance (9.2%) Allstate Corp. (The) 168,674 7,796,112 American International Group, Inc. 234,368 6,105,286 Hartford Financial Services Group, Inc. 124,286 7,878,489 MetLife, Inc. 310,716 15,775,051 Prudential Financial, Inc. 53,265 3,673,687 Travelers Cos., Inc. (The) 133,164 5,875,196 ------------ 47,103,821 ------------ IT Services (2.5%) Computer Sciences Corp. * 131,388 6,223,849 Fiserv, Inc. * 142,041 6,792,401 ------------ 13,016,250 ------------ Leisure Equipment & Products (1.6%) Mattel, Inc. 399,492 8,009,815 ------------ Machinery (1.0%) Caterpillar, Inc. (a) 71,021 4,937,380 ------------ Media (4.3%) Time Warner, Inc. 901,128 12,904,153 Viacom, Inc., Class B * 323,346 9,031,054 ------------ 21,935,207 ------------ Metals & Mining (1.2%) Alcoa, Inc. (a) 177,551 5,992,346 ------------ Multi-Utilities (1.5%) PG&E Corp. (a) 195,308 7,525,217 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Oil & Gas (15.1%) Apache Corp. 85,225 $ 9,559,688 Chevron Corp. 213,063 18,016,607 ConocoPhillips 232,238 18,955,265 Exxon Mobil Corp. 191,756 15,422,935 Marathon Oil Corp. 301,838 14,931,926 ------------ 76,886,421 ------------ Pharmaceuticals (8.8%) Eli Lilly & Co. 150,919 7,109,794 Forest Laboratories, Inc. * 301,838 10,718,267 Johnson & Johnson 127,838 8,753,068 Schering-Plough Corp. 612,554 12,912,638 Wyeth 131,388 5,323,842 ------------ 44,817,609 ------------ Real Estate Investment Trusts (1.9%) Duke Realty Corp. (a) 390,614 9,659,884 ------------ Semiconductors & Semiconductor Equipment (0.7%) Applied Materials, Inc. 213,063 3,690,251 ------------ Tobacco (4.4%) Altria Group, Inc. 494,737 10,067,898 Philip Morris International, Inc. 142,041 7,336,418 UST, Inc. (a) 97,654 5,137,577 ------------ 22,541,893 ------------ Total Common Stocks 495,148,874 ------------ Investment Companies (3.2%) State Street Navigator Securities Lending Portfolio (c) 16,324,034 16,324,034 ------------ Total Investment Companies 16,324,034 ------------ Investments in Affiliates (3.1%) Fifth Third Institutional Money Market Fund (b) 15,874,134 15,874,134 ------------ Total Investments in Affiliates 15,874,134 ------------ Total Investments (Cost $519,858,685) - 103.3% 527,347,042 Liabilities in excess of other assets - (3.3)% (16,894,237) ------------ NET ASSETS - 100.0% $510,452,805 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) Represents investments of cash collateral received in connection with securities lending. See notes to schedules of investments and notes to financial statements. 79 Structured Large Cap Plus Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (127.8%) Aerospace & Defense (2.3%) Boeing Co. 657 $ 40,149 Honeywell International, Inc. (c) 12,254 622,993 L-3 Communications Holdings, Inc. 12,656 1,249,021 Northrop Grumman Corp. 328 22,104 Raytheon Co. (c) 24,389 1,388,466 ------------ 3,322,733 ------------ Air Freight & Logistics (0.4%) United Parcel Service, Inc., Class B 8,783 554,032 ------------ Airlines (1.7%) Southwest Airlines Co. (c) 162,319 2,530,553 ------------ Beverages (2.7%) Molson Coors Brewing Co., Class B 4,035 217,769 Pepsi Bottling Group, Inc. (c) 57,387 1,598,228 PepsiCo, Inc. (c) 31,822 2,118,072 ------------ 3,934,069 ------------ Biotechnology (2.7%) Cephalon, Inc. * (c) 10,333 755,962 Genentech, Inc. * 1,584 150,876 Gilead Sciences, Inc. * (c) 56,528 3,051,382 ------------ 3,958,220 ------------ Capital Markets (3.7%) Ameriprise Financial, Inc. 83 3,527 Charles Schwab Corp. (The) (c) 8,506 194,702 Federated Investors, Inc., Class B 8,836 290,351 Goldman Sachs Group, Inc. (The) (c) 14,245 2,621,650 Janus Capital Group, Inc. (c) 49,197 1,492,637 Lehman Brothers Holdings, Inc. (c) 6,905 119,733 Morgan Stanley (c) 17,085 674,516 T Rowe Price Group, Inc. 2,135 127,780 ------------ 5,524,896 ------------ Chemicals (2.4%) Air Products & Chemicals, Inc. 150 14,281 Ashland, Inc. (c) 28,925 1,208,197 Dow Chemical Co. (The) (c) 15,657 521,535 Eastman Chemical Co. 743 44,550 Ecolab, Inc. (c) 9,464 423,041 Praxair, Inc. 12,935 1,212,398 Sigma-Aldrich Corp. 1,654 100,464 ------------ 3,524,466 ------------ Commercial Banks (1.9%) US Bancorp 3,418 104,625 Wachovia Corp. (c) 41,100 709,797 Wells Fargo & Co. (c) 66,788 2,021,673 ------------ 2,836,095 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Commercial Services & Supplies (0.8%) Allied Waste Industries, Inc. * (c) 27,892 $ 337,493 Monster Worldwide, Inc. * 99 1,756 Robert Half International, Inc. (c) 20,563 520,039 Waste Management, Inc. (c) 9,491 337,310 ------------ 1,196,598 ------------ Communications Equipment (3.6%) Cisco Systems, Inc. * (c) 42,796 941,084 Juniper Networks, Inc. * (c) 17,393 452,740 Qualcomm, Inc. (c) 70,312 3,891,066 ------------ 5,284,890 ------------ Computers & Peripherals (4.9%) Apple, Inc. * (c) 15,453 2,456,254 International Business Machines Corp. (c) 17,570 2,248,609 QLogic Corp. * (c) 134,370 2,531,531 ------------ 7,236,394 ------------ Construction & Engineering (0.3%) Fluor Corp. 5,072 412,607 ------------ Consumer Finance (0.7%) Capital One Financial Corp. (c) 22,159 927,576 Discover Financial Services (c) 6,546 95,899 ------------ 1,023,475 ------------ Containers & Packaging (1.5%) Ball Corp. (c) 38,257 1,705,497 Bemis Co., Inc. 7,827 220,408 Sealed Air Corp. 14,523 315,149 ------------ 2,241,054 ------------ Diversified Consumer Services (0.3%) H&R Block, Inc. 17,698 430,592 ------------ Diversified Financial Services (4.8%) Bank of America Corp. (c) 44,222 1,454,904 Citigroup, Inc. (c) 63,725 1,191,020 IntercontinentalExchange, Inc. * 1,889 188,522 JPMorgan Chase & Co. (c) 81,439 3,308,867 Leucadia National Corp. 9,807 439,059 Nasdaq OMX Group (The) * (c) 16,153 448,569 ------------ 7,030,941 ------------ Diversified Telecommunication Services (4.9%) AT&T, Inc. (c) 100,666 3,101,519 CenturyTel, Inc. (c) 46,470 1,728,219 Embarq Corp. (c) 18,037 825,554 Verizon Communications, Inc. 45,203 1,538,710 ------------ 7,194,002 ------------ Continued 80 Structured Large Cap Plus Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Electric Utilities (3.1%) Duke Energy Corp. (c) 44,640 $ 784,771 Edison International (c) 20,503 991,115 FirstEnergy Corp. (c) 34,226 2,517,322 Pepco Holdings, Inc. 2,899 72,301 Pinnacle West Capital Corp. (c) 5,552 186,381 ------------ 4,551,890 ------------ Electrical Components & Equipment (0.6%) Emerson Electric Co. (c) 18,588 905,236 ------------ Electronic Equipment & Instruments (0.1%) Molex, Inc. 3,895 95,544 ------------ Energy Equipment & Service (4.0%) Cameron International Corp. * (c) 19,105 912,455 FMC Technologies, Inc. * 1,360 84,021 Halliburton Co. 36,118 1,618,809 National Oilwell Varco, Inc. * (c) 7,648 601,362 Noble Corp. 1,511 78,375 Patterson-UTI Energy, Inc. (c) 28,530 810,823 Schlumberger, Ltd. 3,900 396,240 Smith International, Inc. 17,752 1,320,394 ------------ 5,822,479 ------------ Food & Staples Retailing (2.6%) Safeway, Inc. (c) 12,680 338,810 SUPERVALU, Inc. (c) 60,726 1,555,800 Wal-Mart Stores, Inc. (c) 32,083 1,880,705 ------------ 3,775,315 ------------ Food Products (3.3%) General Mills, Inc. (c) 36,480 2,348,947 HJ Heinz Co. (c) 2,032 102,372 Kellogg Co. 39,972 2,120,915 WM Wrigley Jr. Co. 2,829 223,378 ------------ 4,795,612 ------------ Gas-Distribution (1.3%) Oneok, Inc. (c) 40,378 1,836,391 ------------ Healthcare Equipment & Supplies (1.7%) Baxter International, Inc. (c) 19,976 1,370,553 Becton Dickinson & Co. (c) 754 64,022 Medtronic, Inc. (c) 20,084 1,061,038 ------------ 2,495,613 ------------ Healthcare Providers & Services (3.6%) AmerisourceBergen Corp. (c) 7,467 312,643 Cigna Corp. (c) 29,634 1,097,051 Express Scripts, Inc. * (c) 17,836 1,258,152 Medco Health Solutions, Inc. * (c) 23,915 1,185,706 UnitedHealth Group, Inc. (c) 26,878 754,734 WellPoint, Inc. * (c) 12,183 638,998 ------------ 5,247,284 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Healthcare Technology (0.3%) IMS Health, Inc. 17,797 $ 371,957 ------------ Hotels Restaurants & Leisure (3.0%) Darden Restaurants, Inc. 2,505 81,588 International Game Technology (c) 35,835 777,978 McDonald's Corp. (c) 48,998 2,929,590 Yum! Brands, Inc. (c) 17,297 619,579 ------------ 4,408,735 ------------ Household Durables (0.3%) DR Horton, Inc. (c) 46,092 512,543 ------------ Household Products (2.2%) Procter & Gamble Co. (c) 49,775 3,259,267 ------------ Industrial Conglomerates (2.9%) 3M Co. 1,504 105,867 General Electric Co. (b) (c) 66,116 1,870,422 Tyco International, Ltd. 49,858 2,221,672 ------------ 4,197,961 ------------ Insurance (4.1%) Aflac, Inc. (c) 27,864 1,549,517 American International Group, Inc. (c) 34,762 905,550 Chubb Corp. (c) 32,782 1,574,848 MetLife, Inc. (c) 20,061 1,018,497 Travelers Cos., Inc. (The) (c) 21,493 948,271 ------------ 5,996,683 ------------ Internet & Catalog Retail (0.7%) Amazon.Com, Inc. * (c) 10,146 774,546 Expedia, Inc. * (c) 11,707 229,106 ------------ 1,003,652 ------------ Internet Software & Services (2.3%) eBay, Inc. * (c) 53,321 1,342,090 VeriSign, Inc. * (c) 50,691 1,649,485 Yahoo!, Inc. * 18,315 364,285 ------------ 3,355,860 ------------ IT Services (3.2%) Affiliated Computer Services, Inc., Class A * 19,229 926,838 Automatic Data Processing, Inc. (c) 15,195 648,978 Computer Sciences Corp. * (c) 43,051 2,039,326 DST Systems, Inc. * 6,137 370,859 Paychex, Inc. 1,299 42,763 Western Union Co. (The) (c) 22,373 618,390 ------------ 4,647,154 ------------ Leisure Equipment & Products (0.4%) Hasbro, Inc. 15,918 616,345 ------------ Life Sciences Tools & Services (1.3%) Applied Biosystems, Inc. (c) 10,287 379,899 PerkinElmer, Inc. (c) 20,077 584,241 Thermo Fisher Scientific, Inc. * 15,457 935,457 ------------ 1,899,597 ------------ Continued 81 Structured Large Cap Plus Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Machinery (1.9%) Caterpillar, Inc. (c) 8,872 $ 616,781 Cummins, Inc. 2,385 158,221 Ingersoll-Rand Co., Ltd., Class A 33,424 1,203,264 Parker Hannifin Corp. (c) 13,476 831,200 ------------ 2,809,466 ------------ Media (3.7%) CBS Corp., Class B (c) 77,020 1,260,047 DIRECTV Group, Inc. (The) * (c) 26,109 705,465 News Corp., Class A (c) 7,812 110,384 Omnicom Group, Inc. 1,817 77,568 Time Warner, Inc. (c) 38,372 549,487 Viacom, Inc., Class B * (c) 5,481 153,084 Walt Disney Co. (The) (c) 83,585 2,536,805 ------------ 5,392,840 ------------ Metals & Mining (0.8%) Alcoa, Inc. (c) 30,913 1,043,314 Newmont Mining Corp. (c) 2,577 123,593 ------------ 1,166,907 ------------ Multiline Retail (1.2%) Big Lots, Inc. * (c) 11,823 360,129 Dollar Tree, Inc. * (c) 2,643 99,112 Family Dollar Stores, Inc. (c) 25,173 586,531 Macy's, Inc. (c) 34,249 644,224 ------------ 1,689,996 ------------ Multi-Utilities (2.8%) Dominion Resources, Inc. (c) 38,285 1,691,431 DTE Energy Co. (c) 56,194 2,302,830 NiSource, Inc. 8,950 152,866 ------------ 4,147,127 ------------ Oil & Gas (9.9%) Apache Corp. 10,253 1,150,079 Chevron Corp. (c) 15,470 1,308,143 ConocoPhillips (c) 33,274 2,715,824 Exxon Mobil Corp. (c) 82,890 6,666,843 Hess Corp. (c) 6,392 648,149 Sunoco, Inc. (c) 24,146 980,569 Tesoro Corp. (c) 15,607 240,972 Valero Energy Corp. (c) 26,711 892,414 ------------ 14,602,993 ------------ Pharmaceuticals (6.1%) Bristol-Myers Squibb Co. (c) 35,884 757,870 Eli Lilly & Co. (c) 36,468 1,718,008 Forest Laboratories, Inc. * (c) 37,248 1,322,676 Johnson & Johnson (c) 20,322 1,391,447 Merck & Co., Inc. (c) 58,652 1,929,651 Pfizer, Inc. 28,163 525,803 Watson Pharmaceuticals, Inc. * (c) 42,800 1,237,348 ------------ 8,882,803 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Real Estate Investment Trusts (2.5%) CapitalSource, Inc. (c) 8,445 $ 98,131 Equity Residential 19,265 831,670 HCP, Inc. 3,536 127,543 Host Hotels & Resorts, Inc. (c) 25,571 335,236 Plum Creek Timber Co., Inc. (c) 34,198 1,666,127 Prologis (c) 13,012 636,026 ------------ 3,694,733 ------------ Real Estate Management & Development (0.1%) CB Richard Ellis Group, Inc., Class A * 6,010 84,440 ------------ Road & Rail (1.6%) Norfolk Southern Corp. (c) 31,759 2,284,107 Union Pacific Corp. (c) 1,648 135,861 ------------ 2,419,968 ------------ Semiconductors & Semiconductor Equipment (4.7%) Applied Materials, Inc. (c) 73,236 1,268,447 Intel Corp. (c) 142,620 3,164,738 National Semiconductor Corp. (c) 37,881 793,607 Nvidia Corp. * (c) 10,036 114,812 Texas Instruments, Inc. (c) 66,713 1,626,463 ------------ 6,968,067 ------------ Software (4.6%) BMC Software, Inc. * (c) 64,331 2,115,847 Microsoft Corp. (b) (c) 138,267 3,556,227 Oracle Corp. * (c) 50,653 1,090,559 ------------ 6,762,633 ------------ Specialty Retail (3.0%) AutoZone, Inc. * (c) 6,134 799,199 Best Buy Co., Inc. (c) 14,946 593,655 GameStop Corp., Class A * 20,733 839,894 Gap, Inc. (The) (c) 31,430 506,651 Home Depot, Inc. 382 9,103 Tiffany & Co. 3,805 143,791 TJX Cos., Inc. (c) 47,676 1,607,158 ------------ 4,499,451 ------------ Textiles Apparel & Luxury Goods (1.1%) Coach, Inc. * (c) 4,840 123,469 Nike, Inc., Class B (c) 18,649 1,094,323 Polo Ralph Lauren Corp., Class A (c) 6,673 394,841 ------------ 1,612,633 ------------ Tobacco (2.2%) Altria Group, Inc. (c) 72,970 1,484,940 Philip Morris International, Inc. (c) 35,191 1,817,615 ------------ 3,302,555 ------------ Continued 82 Structured Large Cap Plus Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Utilities (0.6%) AES Corp. (The) * (c) 53,099 $ 857,018 ------------ Wireless Telecommunication Services (0.4%) American Tower Corp., Class A * 15,571 652,425 ------------ Total Common Stocks 187,576,790 ------------ Investments in Affiliates (0.4%) Fifth Third Institutional Money Market Fund (a) 689,415 689,415 ------------ Total Investments in Affiliates 689,415 ------------ Total Investments (Cost $191,901,677) - 128.2% 188,266,205 ------------ Securities Sold Short (Proceeds $52,319,066) - (28.2)% $(41,481,544) Other assets in excess of liabilities - 0.0% 23,985 ------------ NET ASSETS - 100.0% $146,808,646 ============ See notes to schedules of investments and notes to financial statements. Structured Large Cap Plus Schedule of Investments Sold Short July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (28.2)% Aerospace & Defense (0.2)% Precision Castparts Corp. (1,774) $ (165,745) Rockwell Collins, Inc. (3,093) (153,691) ------------ (319,436) ------------ Building & Construction Production-Miscellaneous (0.1)% Owens Corning, Inc. * (5,052) (131,403) ------------ Capital Markets (0.2)% Franklin Resources, Inc. (2,558) (257,360) ------------ Casino Hotels (0.0)% Wynn Resorts, Ltd. * (165) (16,084) ------------ Cellular Telecom (0.3)% NII Holdings, Inc., Class B * (7,174) (392,131) ------------ Commercial Services & Supplies (1.0)% Equifax, Inc. (8,468) (297,142) Pitney Bowes, Inc. (38,051) (1,205,836) ------------ (1,502,978) ------------ Communications Equipment (0.1)% Motorola, Inc. (21,311) (184,127) Nortel Networks Corp. * (3,405) (26,014) ------------ (210,141) ------------ Computers & Peripherals (0.1)% SanDisk Corp. * (8,222) (115,930) ------------ Containers & Packaging (0.3)% Pactiv Corp. * (21,155) (510,047) ------------ Diversified Financial Services (0.1)% Moody's Corp. (4,819) (167,749) ------------ Diversified Telecommunication Services (1.6)% Frontier Communications Corp. (137,980) (1,595,049) Qwest Communications International, Inc. (194,975) (746,754) Windstream Corp. (1,534) (18,285) ------------ (2,360,088) ------------ Electric Utilities (0.5)% Allegheny Energy, Inc. (15,464) (748,458) ------------ Electrical Components & Equipment (0.2)% Energizer Holdings, Inc. * (339) (24,184) General Cable Corp. * (3,588) (206,777) ------------ (230,961) ------------ Continued 83 Structured Large Cap Plus Schedule of Investments Sold Short, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Food & Staples Retailing (0.4)% Whole Foods Market, Inc. (26,755) $ (593,158) ------------ Food Products (0.9)% ConAgra Foods, Inc. (23,715) (514,141) Hershey Co. (The) (4,511) (165,870) Sara Lee Corp. (49,232) (672,509) ------------ (1,352,520) ------------ Food-Meat Products (0.9)% Smithfield Foods, Inc. * (64,847) (1,392,914) ------------ Gas-Distribution (0.7)% Nicor, Inc. (26,427) (1,052,323) ------------ Gold (0.1)% Barrick Gold Corp. (4,015) (170,035) ------------ Healthcare Equipment & Supplies (0.8)% Intuitive Surgical, Inc. * (324) (100,858) Zimmer Holdings, Inc. * (14,886) (1,025,795) ------------ (1,126,653) ------------ Healthcare Providers & Services (1.8)% Cardinal Health, Inc. (6,783) (364,451) Humana, Inc. * (18,389) (807,461) McKesson Corp. (4,469) (250,219) Omnicare, Inc. (37,661) (1,108,740) Quest Diagnostics, Inc. (3,734) (198,500) ------------ (2,729,371) ------------ Healthcare Technology (0.1)% Cerner Corp. * (1,690) (75,475) ------------ Hotels Restaurants & Leisure (0.6)% Starbucks Corp. * (64,396) (945,977) ------------ Household Durables (0.9)% Fortune Brands, Inc. (12,950) (742,164) Newell Rubbermaid, Inc. (30,994) (512,331) ------------ (1,254,495) ------------ Household Products (0.3)% Clorox Co. (7,992) (435,564) ------------ Independent Power Producer (0.1)% Reliant Energy, Inc. * (10,982) (198,884) ------------ Insurance (0.1)% CNA Financial Corp. (3,536) (94,376) ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Insurance Brokers (0.9)% Brown & Brown, Inc. (46,875) $ (823,594) Willis Group Holdings, Ltd. (13,772) (430,650) ------------ (1,254,244) ------------ IT Services (1.8)% Cognizant Technology Solutions Corp., Class A * (48,333) (1,356,707) Fidelity National Information Services, Inc. (30,301) (574,204) Fiserv, Inc. * (3,339) (159,671) Lender Processing Services, Inc. * (15,150) (505,253) ------------ (2,595,835) ------------ Leisure Equipment & Products (1.1)% Mattel, Inc. (78,924) (1,582,426) ------------ Machinery (0.0)% Terex Corp. * (890) (42,124) ------------ Medical-Drugs (0.1)% Endo Pharmaceuticals Holdings, Inc. * (3,669) (84,937) ------------ Medical-HMO (0.1)% Health Net, Inc. * (5,305) (148,328) ------------ Medical-Hospitals (0.5)% Community Health Systems, Inc. * (23,631) (779,350) ------------ Multi-Line Insurance (0.1)% Old Republic International Corp. (20,216) (212,268) ------------ Multiline Retail (0.4)% JC Penney Co., Inc. (2,593) (79,942) Kohl's Corp. * (10,497) (439,929) ------------ (519,871) ------------ Multi-Utilities (2.6)% Ameren Corp. (1,556) (63,936) CMS Energy Corp. (7,707) (104,045) Consolidated Edison, Inc. (20,874) (828,698) Integrys Energy Group, Inc. (45,220) (2,308,993) MDU Resources Group, Inc. (11,662) (372,134) Public Service Enterprise Group, Inc. (756) (31,601) TECO Energy, Inc. (4,118) (76,389) ------------ (3,785,736) ------------ Non-Ferrous Metals (0.7)% Cameco Corp. (28,699) (1,031,155) ------------ Office Electronics (1.1)% Xerox Corp. (118,362) (1,614,458) ------------ Continued 84 Structured Large Cap Plus Schedule of Investments Sold Short, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Paper & Forest Products (0.5)% Weyerhaeuser Co. (13,003) $ (695,140) ------------ Pharmaceuticals (0.9)% Amylin Pharmaceuticals, Inc. * (35,795) (1,129,332) Schering-Plough Corp. (7,217) (152,135) ------------ (1,281,467) ------------ Real Estate Operations/ Development (0.1)% Brookfield Properties Corp. (5,334) (100,706) ------------ Rental Auto/Equipment (0.1)% Hertz Global Holdings, Inc. * (24,888) (212,295) ------------ Road & Rail (0.4)% Canadian Pacific Railway, Ltd. (8,661) (543,997) ------------ S&L/Thrifts-Eastern U.S. (0.1)% People's United Financial, Inc. (11,266) (191,297) ------------ Semiconductor Equipment (0.4)% Marvell Technology Group, Ltd. * (36,983) (546,979) ------------ Semiconductors & Semiconductor Equipment (0.5)% Micron Technology, Inc. * (161,882) (781,890) ------------ Software (1.3)% Citrix Systems, Inc. * (67,318) (1,793,352) Intuit, Inc. * (4,481) (122,466) ------------ (1,915,818) ------------ Specialty Retail (0.6)% Limited Brands, Inc. (14,989) (247,169) Lowe's Cos., Inc. (1,168) (23,734) Office Depot, Inc. * (48,403) (329,140) OfficeMax, Inc. (27,569) (351,780) ------------ (951,823) ------------ Telecom Services (0.3)% Amdocs, Ltd. * (14,142) (430,058) ------------ Textiles Apparel & Luxury Goods (0.0)% Jones Apparel Group, Inc. (4,194) (70,208) ------------ Thrifts & Mortgage Finance (0.1)% Sovereign Bancorp, Inc. (14,210) (135,279) ------------ Utilities (0.7)% Dynegy, Inc., Class A * (156,625) (1,054,086) ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Wireless Equipment (0.4)% Crown Castle International Corp. * (14,012) $ (535,258) ------------ Total Common Stocks (41,481,544) TOTAL SECURITIES SOLD SHORT (Proceeds $52,319,066) - (28.2)% $(41,481,544) ============ Notes to Schedule of Investments * Non-income producing security. (a) Investment is in Institutional Shares of underlying fund. (b) All or part of this security has been designated as collateral for futures contracts. (c) All or part of this security has been designated as collateral for short sales. See notes to schedules of investments and notes to financial statements. 85 Equity Index Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks (99.2%) Aerospace & Defense (2.7%) Boeing Co. 23,718 $ 1,449,407 General Dynamics Corp. 12,622 1,125,125 Goodrich Corp. (a) 3,897 191,499 Honeywell International, Inc. 23,275 1,183,301 L-3 Communications Holdings, Inc.(a) 3,921 386,963 Lockheed Martin Corp. 10,655 1,111,636 Northrop Grumman Corp. 10,675 719,388 Precision Castparts Corp. 4,436 414,455 Raytheon Co. 13,345 759,731 Rockwell Collins, Inc. 5,185 257,643 United Technologies Corp. 30,642 1,960,475 ------------ 9,559,623 ------------ Air Freight & Logistics (0.9%) CH Robinson Worldwide, Inc. 5,370 258,834 Expeditors International Washington, Inc. 6,627 235,325 FedEx Corp. (a) 9,777 770,819 United Parcel Service, Inc., Class B 32,265 2,035,276 ------------ 3,300,254 ------------ Airlines (0.1%) Southwest Airlines Co. 23,251 362,483 ------------ Auto Components (0.2%) Goodyear Tire & Rubber Co. (The) * (a) 7,524 147,696 Johnson Controls, Inc. 18,481 557,387 ------------ 705,083 ------------ Automobiles (0.2%) Ford Motor Co. * (a) 69,911 335,573 General Motors Corp. (a) 17,605 194,887 Harley-Davidson, Inc. (a) 7,470 282,665 ------------ 813,125 ------------ Beverages (2.5%) Anheuser-Busch Cos., Inc. (a) 22,505 1,524,939 Brown-Forman Corp., Class B 2,690 193,572 Coca-Cola Co. (The) (a) 62,865 3,237,547 Coca-Cola Enterprises, Inc. (a) 8,869 150,152 Constellation Brands, Inc., Class A * (a) 6,036 129,895 Molson Coors Brewing Co., Class B 4,504 243,081 Pepsi Bottling Group, Inc. 4,359 121,398 PepsiCo, Inc. 49,980 3,326,669 ------------ 8,927,253 ------------ Biotechnology (1.7%) Amgen, Inc. * 34,477 2,159,294 Biogen Idec, Inc. * 9,233 644,094 Celgene Corp. * 13,680 1,032,703 Genzyme Corp. * 8,417 645,163 Gilead Sciences, Inc. * 29,170 1,574,597 ------------ 6,055,851 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Building Products (0.1%) Masco Corp. (a) 11,423 $ 188,365 ------------ Capital Markets (3.0%) American Capital, Ltd. (a) 6,248 126,959 Ameriprise Financial, Inc. 7,037 299,072 Bank of New York Mellon Corp. (The) 36,057 1,280,023 Charles Schwab Corp. (The) (a) 29,487 674,957 E*Trade Financial Corp. * (a) 13,231 39,958 Federated Investors, Inc., Class B 2,724 89,511 Franklin Resources, Inc. 4,897 492,687 Goldman Sachs Group, Inc. (The) 12,445 2,290,378 Janus Capital Group, Inc. (a) 4,429 134,376 Legg Mason, Inc. 4,473 180,486 Lehman Brothers Holdings, Inc. (a) 22,002 381,515 Merrill Lynch & Co., Inc. (a) 43,052 1,147,336 Morgan Stanley 34,785 1,373,312 Northern Trust Corp. 5,957 465,659 State Street Corp. 13,314 953,815 T Rowe Price Group, Inc. 8,250 493,762 ------------ 10,423,806 ------------ Chemicals (2.1%) Air Products & Chemicals, Inc. (a) 6,722 640,002 Ashland, Inc. 1,739 72,638 Dow Chemical Co. (The) (a) 29,558 984,577 E.I. du Pont de Nemours & Co. (a) 28,464 1,247,008 Eastman Chemical Co. (a) 2,406 144,264 Ecolab, Inc. 5,419 242,229 Hercules, Inc. 3,609 72,360 International Flavors & Fragrances, Inc. 2,531 101,797 Monsanto Co. 17,262 2,056,077 PPG Industries, Inc. (a) 5,104 309,506 Praxair, Inc. 9,930 930,739 Rohm & Haas Co. 3,951 296,325 Sigma-Aldrich Corp. (a) 4,085 248,123 ------------ 7,345,645 ------------ Commercial Banks (2.5%) BB&T Corp. (a) 17,172 481,159 Comerica, Inc. (a) 4,760 136,707 First Horizon National Corp. (a) 6,216 58,430 Huntington Bancshares, Inc. (a) 11,385 79,923 Keycorp 15,370 162,154 M&T Bank Corp. (a) 2,510 176,654 Marshall & Ilsley Corp. (a) 8,293 126,054 National City Corp. (a) 24,382 115,327 PNC Financial Services Group, Inc. 10,954 780,911 Regions Financial Corp. (a) 21,901 207,621 SunTrust Banks, Inc. (a) 11,106 456,012 US Bancorp (a) 55,146 1,688,019 Wachovia Corp. (a) 67,807 1,171,027 Wells Fargo & Co. 104,390 3,159,885 Zions Bancorporation (a) 3,347 97,967 ------------ 8,897,850 ------------ Continued 86 Equity Index Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Commercial Services & Supplies (0.5%) Allied Waste Industries, Inc. * 10,692 $ 129,373 Avery Dennison Corp. 3,313 145,805 Cintas Corp. 4,197 119,363 Equifax, Inc. (a) 4,102 143,939 Monster Worldwide, Inc. * 4,118 73,053 Pitney Bowes, Inc. (a) 6,438 204,020 Robert Half International, Inc. 5,100 128,979 RR Donnelley & Sons Co. 6,439 171,921 Waste Management, Inc. 15,290 543,407 ------------ 1,659,860 ------------ Communications Equipment (2.6%) Ciena Corp. * 2,674 55,272 Cisco Systems, Inc. * 186,343 4,097,682 Corning, Inc. 49,616 992,816 JDS Uniphase Corp. * (a) 7,691 84,063 Juniper Networks, Inc. * (a) 16,465 428,584 Motorola, Inc. 70,487 609,008 Qualcomm, Inc. 51,066 2,825,992 Tellabs, Inc. * (a) 13,636 70,089 ------------ 9,163,506 ------------ Computers & Peripherals (4.8%) Apple, Inc. * 27,803 4,419,287 Dell, Inc. * 63,645 1,563,758 EMC Corp. * 65,210 978,802 Hewlett-Packard Co. 77,923 3,490,950 International Business Machines Corp. (a) 43,318 5,543,838 Lexmark International, Inc., Class A * 2,940 103,135 NetApp, Inc. * (a) 11,070 282,838 QLogic Corp. * (a) 4,259 80,239 SanDisk Corp. * (a) 7,089 99,955 Sun Microsystems, Inc. * (a) 24,871 264,379 Teradata Corp. * 5,616 131,527 ------------ 16,958,708 ------------ Construction & Engineering (0.2%) Fluor Corp. 5,652 459,790 Jacobs Engineering Group, Inc. * 3,769 291,495 ------------ 751,285 ------------ Construction Materials (0.1%) Vulcan Materials Co. (a) 3,361 215,743 ------------ Consumer Finance (0.7%) American Express Co. 36,488 1,354,435 Capital One Financial Corp. (a) 11,790 493,529 Discover Financial Services 14,848 217,523 SLM Corp. * 14,805 253,610 ------------ 2,319,097 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Containers & Packaging (0.1%) Ball Corp. (a) 3,186 $ 142,032 Bemis Co., Inc. (a) 3,251 91,548 Pactiv Corp. * 4,067 98,055 Sealed Air Corp. (a) 5,025 109,043 ------------ 440,678 ------------ Distributors (0.1%) Genuine Parts Co. 4,939 198,103 ------------ Diversified Consumer Services (0.1%) Apollo Group, Inc., Class A * 4,456 277,564 H&R Block, Inc. 10,100 245,733 ------------ 523,297 ------------ Diversified Financial Services (4.0%) Bank of America Corp. (c) 143,694 4,727,533 CIT Group, Inc. (a) 9,140 77,507 Citigroup, Inc. (c) 171,749 3,209,989 CME Group, Inc. * (a) 1,719 619,063 IntercontinentalExchange, Inc. * 2,272 226,746 JPMorgan Chase & Co. 108,796 4,420,381 Leucadia National Corp. (a) 5,459 244,399 Moody's Corp. (a) 6,469 225,186 NYSE Euronext 8,453 399,320 ------------ 14,150,124 ------------ Diversified Telecommunication Services (2.7%) AT&T, Inc. (c) 187,226 5,768,433 CenturyTel, Inc. 3,482 129,496 Embarq Corp. 4,747 217,270 Frontier Communications Corp. 10,586 122,374 Qwest Communications International, Inc. (a) 49,707 190,378 Verizon Communications, Inc. 89,783 3,056,213 Windstream Corp. (a) 13,676 163,018 ------------ 9,647,182 ------------ Electric Utilities (2.2%) Allegheny Energy, Inc. 5,441 263,344 American Electric Power Co., Inc. 12,773 504,534 Duke Energy Corp. 40,010 703,376 Edison International 10,137 490,023 Entergy Corp. 6,088 650,929 Exelon Corp. 20,612 1,620,515 FirstEnergy Corp. 9,510 699,460 FPL Group, Inc. 12,889 831,727 Pepco Holdings, Inc. 6,568 163,806 Pinnacle West Capital Corp. 3,121 104,772 PPL Corp. 11,919 559,716 Progress Energy, Inc. (a) 8,399 355,362 Southern Co. (a) 24,371 862,490 ------------ 7,810,054 ------------ Continued 87 Equity Index Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Electrical Components & Equipment (0.5%) Cooper Industries, Ltd., Class A (a) 5,330 $ 224,766 Emerson Electric Co. (a) 24,642 1,200,066 Rockwell Automation, Inc. (a) 4,471 199,004 ------------ 1,623,836 ------------ Electronic Equipment & Instruments (0.3%) Agilent Technologies, Inc. * 11,499 414,654 Jabil Circuit, Inc. (a) 6,458 105,007 Molex, Inc. 4,468 109,600 Tyco Electronics, Ltd. 15,077 499,652 ------------ 1,128,913 ------------ Energy Equipment & Service (3.2%) Baker Hughes, Inc. 9,726 806,383 BJ Services Co. 9,073 266,746 Cameron International Corp. * (a) 6,842 326,774 ENSCO International, Inc. 4,605 318,390 Halliburton Co. 27,365 1,226,499 Nabors Industries, Ltd. * (a) 8,748 318,952 National Oilwell Varco, Inc. * 13,176 1,036,029 Noble Corp. 8,580 445,045 Rowan Cos., Inc. (a) 3,438 136,832 Schlumberger, Ltd. 37,693 3,829,609 Smith International, Inc. (a) 6,422 477,668 Transocean, Inc. * 10,069 1,369,686 Weatherford International, Ltd. * 21,416 808,026 ------------ 11,366,639 ------------ Food & Staples Retailing (2.7%) Costco Wholesale Corp. 13,625 854,015 CVS Caremark Corp. 45,058 1,644,617 Kroger Co. (The) 20,783 587,743 Safeway, Inc. (a) 13,661 365,022 SUPERVALU, Inc. (a) 6,537 167,478 SYSCO Corp. (a) 18,978 538,216 Walgreen Co. 31,305 1,075,014 Wal-Mart Stores, Inc. 73,448 4,305,522 Whole Foods Market, Inc. (a) 4,324 95,863 ------------ 9,633,490 ------------ Food Products (1.6%) Archer-Daniels-Midland Co. 20,360 582,907 Campbell Soup Co. 6,991 254,333 ConAgra Foods, Inc. (a) 15,239 330,382 Dean Foods Co. * (a) 4,802 102,283 General Mills, Inc. 10,614 683,435 Hershey Co. (The) (a) 5,260 193,410 HJ Heinz Co. 9,929 500,223 Kellogg Co. 7,968 422,782 Kraft Foods, Inc., Class A 47,815 1,521,473 McCormick & Co., Inc. (a) 4,035 161,803 Sara Lee Corp. 22,542 307,924 Tyson Foods, Inc., Class A 8,558 127,514 WM Wrigley Jr. Co. 6,759 533,691 ------------ 5,722,160 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Gas-Distribution (0.1%) Nicor, Inc. (a) 1,404 $ 55,907 Questar Corp. 5,371 284,019 ------------ 339,926 ------------ Healthcare Equipment & Supplies (2.2%) Baxter International, Inc. 19,791 1,357,861 Becton Dickinson & Co. 7,733 656,609 Boston Scientific Corp. * 42,641 507,001 Covidien, Ltd. 15,800 777,992 CR Bard, Inc. 3,051 283,255 Hospira, Inc. * 4,888 186,526 Intuitive Surgical, Inc. * 1,215 378,217 Medtronic, Inc. 35,285 1,864,106 St Jude Medical, Inc. * (a) 10,584 493,003 Stryker Corp. (a) 7,611 488,550 Varian Medical Systems, Inc. * 3,933 235,980 Zimmer Holdings, Inc. * 7,348 506,351 ------------ 7,735,451 ------------ Healthcare Providers & Services (2.0%) Aetna, Inc. 15,282 626,715 AmerisourceBergen Corp. (a) 5,239 219,357 Cardinal Health, Inc. 11,341 609,352 Cigna Corp. 8,800 325,776 Coventry Health Care, Inc. * 4,863 172,004 DaVita, Inc. * 3,302 184,417 Express Scripts, Inc. * 8,027 566,225 Humana, Inc. * 5,244 230,264 Laboratory Corp. of America Holdings * 3,460 233,827 McKesson Corp. 8,759 490,416 Medco Health Solutions, Inc. * 16,006 793,578 Patterson Cos., Inc. * 3,954 123,483 Quest Diagnostics, Inc. (a) 4,863 258,517 Tenet Healthcare Corp. * (a) 14,743 85,362 UnitedHealth Group, Inc. 38,813 1,089,869 WellPoint, Inc. * 16,625 871,981 ------------ 6,881,143 ------------ Healthcare Technology (0.0%) IMS Health, Inc. 5,437 113,633 ------------ Hotels Restaurants & Leisure (1.3%) Carnival Corp. (a) 13,576 501,497 Darden Restaurants, Inc. (a) 4,408 143,569 International Game Technology 9,882 214,538 Marriott International, Inc., Class A (a) 9,477 245,549 McDonald's Corp. 35,741 2,136,954 Starbucks Corp. * 23,188 340,632 Starwood Hotels & Resorts Worldwide, Inc. 5,909 202,620 Wendy's International, Inc. 2,717 62,355 Wyndham Worldwide Corp. 5,557 99,693 Yum! Brands, Inc. 14,956 535,724 ------------ 4,483,131 ------------ Continued 88 Equity Index Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Household Durables (0.4%) Black & Decker Corp. (a) 1,796 $ 107,796 Centex Corp. (a) 3,732 54,786 DR Horton, Inc. (a) 8,502 94,542 Fortune Brands, Inc. (a) 4,766 273,139 Harman International Industries, Inc. (a) 1,882 77,482 KB Home (a) 2,395 42,128 Leggett & Platt, Inc. (a) 5,435 105,982 Lennar Corp., Class A (a) 4,338 52,490 Newell Rubbermaid, Inc. 8,596 142,092 Pulte Homes, Inc. 6,608 80,684 Snap-On, Inc. 1,802 101,435 Stanley Works (The) (a) 2,554 113,602 Whirlpool Corp. (a) 2,427 183,724 ------------ 1,429,882 ------------ Household Products (2.4%) Clorox Co. 4,305 234,622 Colgate-Palmolive Co. 16,050 1,192,034 Kimberly-Clark Corp. 13,242 765,785 Procter & Gamble Co. 96,256 6,302,843 ------------ 8,495,284 ------------ Industrial Conglomerates (3.2%) 3M Co. 22,270 1,567,585 General Electric Co. (c) 314,428 8,895,168 Textron, Inc. 7,769 337,719 Tyco International, Ltd. 15,130 674,193 ------------ 11,474,665 ------------ Insurance (3.4%) Aflac, Inc. (a) 15,075 838,321 Allstate Corp. (The) 17,270 798,219 American International Group, Inc. 84,751 2,207,764 AON Corp. 9,294 425,665 Assurant, Inc. 3,002 180,480 Chubb Corp. 11,601 557,312 Cincinnati Financial Corp. 5,351 148,972 Genworth Financial, Inc., Class A 13,773 219,955 Hartford Financial Services Group, Inc. 9,884 626,547 Lincoln National Corp. 8,124 387,515 Loews Corp. (a) 11,378 507,004 Marsh & McLennan Cos., Inc. 16,220 458,215 MBIA, Inc. (a) 6,778 40,193 MetLife, Inc. 22,304 1,132,374 Principal Financial Group, Inc. 8,264 351,303 Progressive Corp. (The) (a) 21,637 438,149 Prudential Financial, Inc. 13,741 947,717 Safeco Corp. 2,722 180,087 Torchmark Corp. 2,738 158,941 Travelers Cos., Inc. (The) 19,034 839,780 Unum Group 11,225 271,196 XL Capital, Ltd., Class A (a) 9,581 171,404 ------------ 11,887,113 ------------ Continued Shares Value ------------ ------------ Common Stocks, continued Internet & Catalog Retail (0.3%) Amazon.Com, Inc. * 9,686 $ 739,429 Expedia, Inc. * (a) 6,358 124,426 IAC/InterActiveCorp * 5,944 103,783 ------------ 967,638 ------------ Internet Software & Services (1.6%) Akamai Technologies, Inc. * 5,152 120,248 eBay, Inc. * 34,978 880,396 Google, Inc., Class A * 7,331 3,473,061 VeriSign, Inc. * 6,194 201,553 Yahoo!, Inc. * (a) 43,440 864,022 ------------ 5,539,280 ------------ IT Services (1.1%) Affiliated Computer Services, Inc., Class A * 3,098 149,324 Automatic Data Processing, Inc. 16,178 690,962 Cognizant Technology Solutions Corp., Class A * 8,998 252,574 Computer Sciences Corp. * 4,755 225,244 Convergys Corp. * 4,218 53,569 Electronic Data Systems Corp. 15,834 392,842 Fidelity National Information Services, Inc. 5,286 100,170 Fiserv, Inc. * 5,192 248,281 Mastercard, Inc., Class A 2,296 560,568 Paychex, Inc. 10,136 333,677 Total System Services, Inc. 6,259 122,551 Unisys Corp. * 10,888 40,177 Western Union Co. (The) 23,361 645,698 ------------ 3,815,637 ------------ Leisure Equipment & Products (0.2%) Eastman Kodak Co. (a) 8,929 130,720 Hasbro, Inc. 4,576 177,183 Mattel, Inc. 11,413 228,831 ------------ 536,734 ------------ Life Sciences Tools & Services (0.4%) Applied Biosystems, Inc. 5,180 191,297 Millipore Corp. * 1,679 118,118 PerkinElmer, Inc. 3,774 109,823 Thermo Fisher Scientific, Inc. * 13,272 803,221 Waters Corp. * 3,105 210,954 ------------ 1,433,413 ------------ Machinery (1.9%) Caterpillar, Inc. (a) 19,388 1,347,854 Cummins, Inc. (a) 6,474 429,485 Danaher Corp. (a) 8,098 645,006 Deere & Co. 13,536 949,686 Dover Corp. 6,016 298,574 Eaton Corp. 5,227 371,326 Illinois Tool Works, Inc. (a) 12,613 590,919 Ingersoll-Rand Co., Ltd., Class A 10,181 366,513 ITT Corp. (a) 5,634 377,252 Continued 89 Equity Index Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Machinery, continued Manitowoc Co., Inc. (The) 4,237 $ 111,687 Paccar, Inc. (a) 11,602 487,980 Pall Corp. 3,814 154,162 Parker Hannifin Corp. 5,206 321,106 Terex Corp. * (a) 3,170 150,036 ------------ 6,601,586 ------------ Media (2.7%) CBS Corp., Class B 21,310 348,632 Comcast Corp., Class A (a) 93,457 1,927,083 DIRECTV Group, Inc. (The) * (a) 22,336 603,519 Gannett Co., Inc. (a) 7,246 131,297 Interpublic Group of Cos., Inc. * (a) 14,668 128,932 McGraw-Hill Cos., Inc. (The) 10,182 414,102 Meredith Corp. 1,197 30,595 News Corp., Class A 72,807 1,028,763 New York Times Co. (The), Class A (a) 4,478 56,378 Omnicom Group, Inc. 10,214 436,036 Scripps Networks Interactive, Inc., Class A * 2,792 113,188 Time Warner, Inc. 113,145 1,620,236 Viacom, Inc., Class B * 19,744 551,450 Walt Disney Co. (The) (a) 60,136 1,825,128 Washington Post Co. (The), Class B 181 111,903 ------------ 9,327,242 ------------ Metals & Mining (1.2%) AK Steel Holding Corp. 3,532 224,282 Alcoa, Inc. 25,698 867,308 Allegheny Technologies, Inc. (a) 3,180 150,382 Freeport-McMoRan Copper & Gold, Inc. (a) 12,035 1,164,386 Newmont Mining Corp. (a) 14,340 687,746 Nucor Corp. (a) 9,908 566,936 Titanium Metals Corp. (a) 2,725 30,684 United States Steel Corp. 3,678 589,804 ------------ 4,281,528 ------------ Multiline Retail (0.7%) Big Lots, Inc. * (a) 2,621 79,836 Dillard's, Inc., Class A (a) 1,893 19,138 Family Dollar Stores, Inc. (a) 4,529 105,526 JC Penney Co., Inc. 6,896 212,604 Kohl's Corp. * 9,560 400,659 Macy's, Inc. 13,488 253,709 Nordstrom, Inc. (a) 5,697 163,732 Sears Holdings Corp. * (a) 2,164 175,284 Target Corp. (a) 24,639 1,114,422 ------------ 2,524,910 ------------ Multi-Utilities (1.2%) Ameren Corp. 6,459 265,400 Centerpoint Energy, Inc. (a) 9,993 157,590 CMS Energy Corp. (a) 6,987 94,324 Consolidated Edison, Inc. (a) 8,431 334,711 Dominion Resources, Inc. 18,237 805,711 Continued Shares Value ------------ ------------ Common Stocks, continued Multi-Utilities, continued DTE Energy Co. (a) 4,972 $ 203,753 Integrys Energy Group, Inc. (a) 2,364 120,706 NiSource, Inc. (a) 8,530 145,692 PG&E Corp. (a) 11,382 438,548 Public Service Enterprise Group, Inc. (a) 16,141 674,694 Sempra Energy 7,833 439,901 TECO Energy, Inc. (a) 6,550 121,502 Xcel Energy, Inc. (a) 13,779 276,407 ------------ 4,078,939 ------------ Office Electronics (0.1%) Xerox Corp. 28,072 382,902 ------------ Oil & Gas (10.7%) Anadarko Petroleum Corp. 14,873 861,296 Apache Corp. 10,565 1,185,076 Cabot Oil & Gas Corp. 3,072 135,199 Chesapeake Energy Corp. (a) 15,150 759,772 Chevron Corp. 65,181 5,511,705 ConocoPhillips 48,590 3,965,916 Consol Energy, Inc. 5,806 431,908 Devon Energy Corp. 14,023 1,330,643 El Paso Corp. 22,498 403,389 EOG Resources, Inc. 7,794 783,531 Exxon Mobil Corp. (c) 166,527 13,393,767 Hess Corp. 8,906 903,068 Marathon Oil Corp. 22,258 1,101,103 Massey Energy Co. 2,550 189,338 Murphy Oil Corp. 6,055 482,765 Noble Energy, Inc. 5,375 397,051 Occidental Petroleum Corp. 25,846 2,037,440 Peabody Energy Corp. 8,559 579,016 Range Resources Corp. 4,881 237,021 Southwestern Energy Co. * 10,758 390,623 Spectra Energy Corp. 19,740 536,336 Sunoco, Inc. (a) 3,745 152,085 Tesoro Corp. (a) 4,257 65,728 Valero Energy Corp. 16,825 562,123 Williams Cos., Inc. 18,293 586,291 XTO Energy, Inc. 16,927 799,462 ------------ 37,781,652 ------------ Paper & Forest Products (0.3%) International Paper Co. (a) 13,367 370,533 MeadWestvaco Corp. 5,707 153,005 Weyerhaeuser Co. 6,761 361,443 ------------ 884,981 ------------ Personal Products (0.2%) Avon Products, Inc. 13,461 570,746 Estee Lauder Cos., Inc. (The), Class A (a) 3,566 157,261 ------------ 728,007 ------------ Continued 90 Equity Index Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Pharmaceuticals (6.2%) Abbott Laboratories 48,634 $ 2,740,040 Allergan, Inc. 9,832 510,576 Barr Pharmaceuticals, Inc. * 3,336 220,109 Bristol-Myers Squibb Co. 62,111 1,311,784 Eli Lilly & Co. 31,288 1,473,978 Forest Laboratories, Inc. * 9,382 333,155 Johnson & Johnson 88,832 6,082,327 King Pharmaceuticals, Inc. * (a) 7,597 87,441 Merck & Co., Inc. 67,663 2,226,113 Mylan Laboratories, Inc. * (a) 9,405 121,983 Pfizer, Inc. 213,662 3,989,069 Schering-Plough Corp. 50,994 1,074,953 Watson Pharmaceuticals, Inc. * 3,189 92,194 Wyeth 42,184 1,709,296 ------------ 21,973,018 ------------ Real Estate Investment Trusts (1.2%) Apartment Investment & Management Co., Class A (a) 2,742 93,694 AvalonBay Communities, Inc. (a) 2,481 247,380 Boston Properties, Inc. 3,703 356,192 Developers Diversified Realty Corp. 3,864 123,493 Equity Residential (a) 8,622 372,212 General Growth Properties, Inc. (a) 8,509 233,232 HCP, Inc. (a) 7,455 268,902 Host Hotels & Resorts, Inc. (a) 16,249 213,024 Kimco Realty Corp. (a) 7,847 276,921 Plum Creek Timber Co., Inc. (a) 5,431 264,598 Prologis (a) 8,239 402,722 Public Storage (a) 3,873 317,160 Simon Property Group, Inc. (a) 7,101 657,766 Vornado Realty Trust (a) 4,336 412,224 ------------ 4,239,520 ------------ Real Estate Management & Development (0.0%) CB Richard Ellis Group, Inc., Class A * (a) 5,370 75,448 ------------ Road & Rail (1.2%) Burlington Northern Santa Fe Corp. 9,206 958,621 CSX Corp. 12,735 860,631 Norfolk Southern Corp. 11,896 855,560 Ryder System, Inc. 1,861 122,752 Union Pacific Corp. 16,316 1,345,091 ------------ 4,142,655 ------------ Semiconductors & Semiconductor Equipment (2.4%) Advanced Micro Devices, Inc. * (a) 18,636 78,458 Altera Corp. 9,654 211,905 Analog Devices, Inc. 9,163 279,563 Applied Materials, Inc. 42,876 742,612 Broadcom Corp., Class A * (a) 14,052 341,323 Intel Corp. 180,798 4,011,908 Kla-Tencor Corp. 5,309 199,565 Continued Shares Value ------------ ------------ Common Stocks, continued Semiconductors & Semiconductor Equipment, continued Linear Technology Corp. (a) 6,907 $ 214,462 LSI Corp. * 20,215 140,292 MEMC Electronic Materials, Inc. * 7,177 331,649 Microchip Technology, Inc. 5,946 189,856 Micron Technology, Inc. * (a) 23,548 113,737 National Semiconductor Corp. 6,831 143,110 Novellus Systems, Inc. * 2,949 60,071 Nvidia Corp. * 17,530 200,543 Teradyne, Inc. * 5,402 50,617 Texas Instruments, Inc. 41,756 1,018,011 Xilinx, Inc. 8,676 215,425 ------------ 8,543,107 ------------ Software (3.5%) Adobe Systems, Inc. * 16,731 691,827 Autodesk, Inc. * 7,156 228,205 BMC Software, Inc. * (a) 5,874 193,196 CA, Inc. (a) 12,092 288,515 Citrix Systems, Inc. * 5,902 157,229 Compuware Corp. * 8,904 97,944 Electronic Arts, Inc. * 9,947 429,511 Intuit, Inc. * 10,041 274,421 Microsoft Corp. (c) 252,671 6,498,698 Novell, Inc. * 10,885 60,629 Oracle Corp. * 125,175 2,695,018 Symantec Corp. * 26,269 553,488 ------------ 12,168,681 ------------ Specialty Retail (1.5%) Abercrombie & Fitch Co., Class A 2,696 148,873 AutoNation, Inc. * (a) 4,293 44,304 AutoZone, Inc. * 1,298 169,116 Bed Bath & Beyond, Inc. * (a) 7,944 221,082 Best Buy Co., Inc. (a) 10,918 433,663 GameStop Corp., Class A * (a) 5,257 212,961 Gap, Inc. (The) (a) 13,708 220,973 Home Depot, Inc. 53,735 1,280,505 Limited Brands, Inc. (a) 9,141 150,735 Lowe's Cos., Inc. 46,002 934,761 Office Depot, Inc. * 8,487 57,712 RadioShack Corp. 4,287 71,507 Sherwin-Williams Co. (The) (a) 3,106 165,394 Staples, Inc. 22,212 499,770 Tiffany & Co. (a) 3,865 146,058 TJX Cos., Inc. 13,387 451,276 ------------ 5,208,690 ------------ Textiles Apparel & Luxury Goods (0.4%) Coach, Inc. * (a) 10,636 271,324 Jones Apparel Group, Inc. (a) 2,653 44,411 Liz Claiborne, Inc. 3,182 41,589 Nike, Inc., Class B (a) 12,029 705,862 Polo Ralph Lauren Corp., Class A 1,864 110,293 VF Corp. 2,765 197,919 ------------ 1,371,398 ------------ Continued 91 Equity Index Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Common Stocks, continued Thrifts & Mortgage Finance (0.4%) Fannie Mae (a) 33,654 $ 387,021 Freddie Mac (a) 20,260 165,524 Hudson City Bancorp, Inc. (a) 16,546 302,130 MGIC Investment Corp. (a) 4,217 26,989 Sovereign Bancorp, Inc. (a) 15,057 143,342 Washington Mutual, Inc. (a) 46,784 249,359 ------------ 1,274,365 ------------ Tobacco (1.6%) Altria Group, Inc. 66,375 1,350,731 Lorillard, Inc. * 5,477 367,562 Philip Morris International, Inc. 66,375 3,428,269 Reynolds American, Inc. (a) 5,323 297,183 UST, Inc. (a) 4,702 247,372 ------------ 5,691,117 ------------ Trading Companies & Distributors (0.1%) WW Grainger, Inc. (a) 2,096 187,613 ------------ Utilities (0.3%) AES Corp. (The) * 21,532 347,526 Constellation Energy Group, Inc. 5,616 467,027 Dynegy, Inc., Class A * 15,754 106,024 ------------ 920,577 ------------ Wireless Telecommunication Services (0.4%) American Tower Corp., Class A * 12,447 521,529 Sprint Nextel Corp. 90,348 735,433 ------------ 1,256,962 ------------ Total Common Stocks 348,669,841 ------------ Investment Companies (9.4%) State Street Navigator Securities Lending Portfolio (d) 33,029,455 33,029,455 ------------ Total Investment Companies 33,029,455 ------------ Investments in Affiliates (1.3%) Cash & Cash Equivalents (1.2%) Fifth Third Institutional Money Market Fund (b) 4,274,338 4,274,338 ------------ Commercial Banks (0.1%) Fifth Third Bancorp 18,250 254,953 ------------ Total Investments in Affiliates 4,529,291 ------------ Total Investments (Cost $198,846,236) - 109.9% 386,228,587 ------------ Liabilities in excess of other assets - (9.9)% (34,723,003) ------------ NET ASSETS - 100.0% $351,505,584 ============ Continued Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) All or part of this security has been designated as collateral for futures contracts. (d) Represents investments of cash collateral received in connection with securities lending. See notes to schedules of investments and notes to financial statements. 92 International Equity Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Foreign Stocks(c) (97.4%) Australia (5.7%) ASX, Ltd. 109,768 $ 3,530,582 Australia & New Zealand Banking Group, Ltd. 20,517 308,157 BHP Billiton, Ltd. 17,366 648,625 BlueScope Steel, Ltd. 428,015 4,644,225 Coca-Cola Amatil, Ltd. 19,435 139,950 Commonwealth Bank of Australia (a) 1,768 65,161 Goodman Fielder, Ltd. (a) 1,171,824 1,440,467 Macquarie Infrastructure Group (a) 1,664,461 3,969,405 National Australia Bank, Ltd. 80,624 1,836,041 Qantas Airways, Ltd. 1,375,076 4,229,291 St George Bank, Ltd. 20,466 525,827 Telstra Corp., Ltd. 610,765 2,567,978 Wesfarmers, Ltd. (a) 2,486 79,741 Westpac Banking Corp. (a) 68,938 1,374,523 ------------ 25,359,973 ------------ Austria (0.9%) OMV AG 38,793 2,673,195 Voestalpine AG (a) 17,239 1,131,684 ------------ 3,804,879 ------------ Belgium (1.0%) Belgacom SA 39,569 1,554,165 Dexia SA (a) 103,811 1,415,773 InBev NV (a) 21,804 1,467,898 ------------ 4,437,836 ------------ Bermuda (0.7%) Orient Overseas (International), Ltd. 155,564 677,701 Pacific Basin Shipping, Ltd. 1,885,009 2,646,067 ------------ 3,323,768 ------------ Denmark (1.5%) Danisco A/S (a) 30,100 2,053,012 FLSmidth & Co. A/S 2,625 254,540 Novo Nordisk A/S, Class B 72,076 4,585,351 ------------ 6,892,903 ------------ Finland (0.6%) Kesko Oyj, B Shares 35,134 970,277 Neste Oil Oyj 72 1,739 Nokia Oyj 37,995 1,038,541 Outokumpu Oyj 22,706 529,524 ------------ 2,540,081 ------------ France (9.5%) AXA SA (a) 14,285 421,923 BNP Paribas * 283 28,164 Bouygues 38,313 2,466,124 Carrefour SA 16,487 838,662 Casino Guichard Perrachon SA (a) 10,272 1,021,649 Cie de Saint-Gobain (a) 52,869 3,286,412 CNP Assurances 31,927 3,556,049 France Telecom SA (a) 206,333 6,551,324 Continued Shares Value ------------ ------------ Foreign Stocks, continued France, continued Imerys SA 287 $ 17,155 Lafarge SA (a) 24,079 3,271,724 Legrand SA (a) 58,468 1,490,193 Natixis (a) 15,698 127,839 Sanofi-Aventis SA (a) 86,858 6,095,652 Total SA (d) 93,492 7,167,970 Vivendi 144,765 6,050,789 ------------ 42,391,629 ------------ Germany (8.4%) BASF SE (d) 101,758 6,452,200 Bayerische Motoren Werke AG 106,961 4,801,659 Deutsche Lufthansa AG (a) 204,759 4,697,486 E.ON AG 1,224 233,551 Hannover Rueckversicherung AG 58,949 2,818,204 MAN AG 31,499 3,176,425 Muenchener Rueckversicherungs AG 27,013 4,499,139 RWE AG 48,207 5,781,837 Salzgitter AG 2,789 457,037 ThyssenKrupp AG 79,223 4,432,526 ------------ 37,350,064 ------------ Great Britain (18.9%) Antofagasta PLC 421,020 4,796,251 AstraZeneca PLC 144,225 6,990,735 Aviva PLC 35,419 351,432 BP PLC (d) 850,558 8,736,044 British American Tobacco PLC 88,866 3,205,948 BT Group PLC 291,583 980,400 Centrica PLC 429,741 2,667,338 GKN PLC 920,530 3,864,667 GlaxoSmithKline PLC 136,763 3,183,960 HBOS PLC 192,094 1,102,544 HSBC Holdings PLC 208,840 3,455,292 ICAP PLC 129,293 1,274,228 Investec PLC 545,228 3,647,894 J Sainsbury PLC 128,345 800,404 Kazakhmys PLC 145,259 4,272,925 Legal & General Group PLC 2,024,247 3,892,658 Lloyds TSB Group PLC 202,413 1,181,647 National Grid PLC 86,746 1,143,216 Next PLC 74,358 1,397,469 Old Mutual PLC 2,116,656 4,036,987 Scottish & Southern Energy PLC 33,911 938,639 Severn Trent PLC 3,305 86,716 Smith & Nephew PLC 115,861 1,235,484 Stagecoach Group PLC 312,813 1,750,610 Standard Chartered PLC 177,805 5,405,120 Tate & Lyle PLC 258,521 1,992,503 Tesco PLC 51,740 367,625 Tomkins PLC 1,037,380 2,531,048 Unilever PLC 46,355 1,269,493 United Utilities Group PLC * 342,431 1,153,874 United Utilities Group PLC 264,605 3,635,846 Vedanta Resources PLC 28,947 1,150,111 Vodafone Group PLC 499,465 1,341,053 ------------ 83,840,161 ------------ Continued 93 International Equity Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Foreign Stocks, continued Greece (0.5%) Alpha Bank AE 13,602 $ 401,027 EFG Eurobank Ergasias SA 60,972 1,510,810 Hellenic Petroleum SA 11,505 151,114 ------------ 2,062,951 ------------ Hong Kong (2.4%) BOC Hong Kong Holdings, Ltd. 1,515,978 3,821,447 Hang Seng Bank, Ltd. 28,004 550,509 Hong Kong Exchanges and Clearing, Ltd. 115,600 1,710,930 HongKong Electric Holdings 190,500 1,101,923 Hopewell Holdings 149,000 534,220 Wharf Holdings, Ltd. 535,000 2,368,882 Wheelock & Co., Ltd. 167,000 454,261 Wing Hang Bank, Ltd. 1,000 13,417 ------------ 10,555,589 ------------ Ireland (1.0%) Anglo Irish Bank Corp. PLC 518,529 4,080,128 Bank of Ireland 36,703 310,154 ------------ 4,390,282 ------------ Italy (4.5%) Enel SpA 650,707 6,029,864 ENI SpA (d) 214,448 7,254,180 Fiat SpA 280,778 4,801,366 Fondiaria-Sai SpA 39,780 1,322,573 Mediaset SpA 54,031 383,052 ------------ 19,791,035 ------------ Japan (21.3%) Aeon Credit Service Co., Ltd. (a) 132,500 1,688,347 Aisin Seiki Co., Ltd. 98,800 2,571,988 Alps Electric Co., Ltd. (a) 123,600 1,263,108 Asahi Breweries, Ltd. (a) 19,900 372,477 Asahi Kasei Corp. 138,000 705,185 Brother Industries, Ltd. (a) 132,700 1,671,313 Canon, Inc. 53,700 2,453,880 Coca-Cola West Holdings Co., Ltd. (a) 29,400 649,291 Daihatsu Motor Co., Ltd. (a) 28,000 332,025 Dena Co., Ltd. (a) 195 939,927 Fujitsu, Ltd. 116,000 844,014 Hino Motors, Ltd. 359,000 1,877,107 Hitachi Chemical Co., Ltd. 32,200 613,580 Hitachi Construction Machinery Co., Ltd. 45,900 1,191,828 Isuzu Motors, Ltd. 151,000 647,233 JFE Holdings, Inc. 35,600 1,719,281 Kawasaki Kisen Kaisha, Ltd. 82,000 641,262 Kobe Steel, Ltd. 1,503,000 4,223,055 Konica Minolta Holdings, Inc. 256,500 4,200,311 Lawson, Inc. 8,400 434,465 Minebea Co., Ltd. 11,000 58,075 Mitsubishi Corp. 155,800 4,517,877 Mitsubishi Tanabe Pharma Corp. 104,000 1,350,793 Continued Shares Value ------------ ------------ Foreign Stocks, continued Japan, continued Mitsubishi UFJ Lease & Finance Co., Ltd. 68,720 $ 3,001,126 Mitsui OSK Lines, Ltd. 258,000 3,324,616 NHK Spring Co., Ltd. 110,000 775,112 Nippon Telegraph & Telephone Corp. 736 3,730,922 Nippon Yusen KK 189,000 1,605,878 Nissan Motor Co., Ltd. 628,221 4,830,640 Nisshin Steel Co., Ltd. 462,000 1,428,269 Nitto Denko Corp. 74,100 2,119,624 NSK, Ltd. 339,000 2,798,285 NTN Corp. (a) 122,000 759,957 NTT DoCoMo, Inc. 1,930 3,111,049 Promise Co., Ltd. 15,200 387,546 Ricoh Co., Ltd. 59,000 949,693 Sankyo Co., Ltd. 55,000 3,318,471 Shinsei Bank, Ltd. 916,000 3,151,213 Stanley Electric Co., Ltd. 106,700 2,190,198 Sumitomo Mitsui Financial Group, Inc. 364 2,804,439 Sumitomo Trust & Banking Co., Ltd. (The) 295,000 2,013,744 Suzuki Motor Corp. 10,200 221,527 Takefuji Corp. (a) 42,320 581,453 TDK Corp. 64,800 3,763,963 Tokai Rika Co., Ltd. 93,394 1,587,871 Tokyo Electron, Ltd. 55,500 3,114,704 Tosoh Corp. 811,000 3,486,875 Toyota Motor Corp. 105,200 4,520,408 ------------ 94,544,005 ------------ Netherlands (3.5%) Heineken Holding NV 24,893 1,061,706 ING Groep NV (a) (d) 211,984 6,929,790 Koninklijke Ahold NV 181,280 2,063,997 Royal Dutch Shell PLC, A Shares 13,001 463,142 Royal Dutch Shell PLC, B Shares 141,781 4,994,271 ------------ 15,512,906 ------------ Norway (1.3%) StatoilHydro ASA 178,715 5,806,311 ------------ Singapore (2.2%) DBS Group Holdings, Ltd. 108,000 1,508,422 Jardine Cycle & Carriage, Ltd. (a) 47,515 603,794 Neptune Orient Lines, Ltd. (a) 612,000 1,252,884 Olam International, Ltd. (a) 538,000 887,984 Oversea-Chinese Banking Corp. 668,000 4,102,507 Singapore Airlines, Ltd. 55,270 608,370 United Overseas Bank, Ltd. 44,000 624,739 Wilmar International, Ltd. (a) 43,000 137,245 ------------ 9,725,945 ------------ Spain (5.1%) ACS Actividades de Construccion y Servicios SA 19,226 944,804 Banco Bilbao Vizcaya Argentaria SA 133,626 2,444,513 Continued 94 International Equity Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Foreign Stocks, continued Spain, continued Banco Santander Central Hispano SA (a) (d) 419,110 $ 8,087,317 Repsol YPF SA 110,126 3,697,809 Telefonica SA (d) 249,670 6,504,263 Union Fenosa SA 39,615 1,061,373 ------------ 22,740,079 ------------ Sweden (1.6%) Boliden AB 153,481 901,076 Nordea Bank AB 76,200 1,086,618 Scania AB, B Shares (a) 65,500 1,027,263 SKF AB, B Shares (a) 226,600 3,841,143 Telefonaktiebolaget LM Ericsson, B Shares 17,000 178,148 ------------ 7,034,248 ------------ Switzerland (6.8%) Baloise Holding AG 39,546 3,702,475 Compagnie Financiere Richemont SA 742 44,525 Holcim, Ltd. 34,877 2,484,817 Nestle SA (d) 223,360 9,788,892 Novartis AG 98,596 5,844,287 Roche Holding AG 2,932 541,448 Swiss Life Holding 14,468 3,719,879 Swisscom AG 9,674 3,121,993 Xstrata PLC 13,695 981,749 ------------ 30,230,065 ------------ Total Foreign Stocks 432,334,710 ------------ Investment Companies (9.0%) United States (9.0%) iShares MSCI EAFE Index Fund 60,600 4,023,234 State Street Navigator Securities Lending Portfolio (e) 36,115,304 36,115,304 ------------ 40,138,538 ------------ Total Investment Companies 40,138,538 ------------ Preferred Stocks(c)(0.2%) Germany (0.2%) Bayerische Motoren Werke AG (a) 16,478 606,641 RWE AG 5,445 522,959 ------------ 1,129,600 ------------ Total Preferred Stocks 1,129,600 ------------ Rights (0.0%) Japan (0.0%) Dowa Holdings Co., Ltd. * 28,000 -- ------------ Total Rights 0 ------------ Continued Shares Value ------------ ------------ Investments in Affiliates (1.0%) United States (1.0%) Fifth Third Institutional Money Market Fund(b) 4,246,813 $ 4,246,813 ------------ Total Investments in Affiliates 4,246,813 ------------ Total Investments (Cost $494,506,481) - 107.6% 477,849,661 Liabilities in excess of other assets - (7.6)% (33,797,953) ------------ NET ASSETS - 100.0% $444,051,708 ============ Notes to Schedule of Investments * Non-income producing security. (a) All or part of this security was on loan. (b) Investment is in Institutional Shares of underlying fund. (c) The Fund's securities were fair valued at July 31, 2008 using procedures approved by the Board of Trustees. (d) All or part of this security has been designated as collateral for futures contracts. (e) Represents investments of cash collateral received in connection with securities lending. Investment concentration as a percentage of net assets, by industry: Consumer, Non-cyclic 1.2% Agricultural Operations --^ Airlines 2.1% Auto Parts & Equipment 0.2% Auto/Truck Parts & Equipment Orig 0.9% Auto-Cars/Light Trucks 3.4% Auto-Med & Heavy Duty Trucks 0.7% Automobile Manufacturers 1.3% Automobiles & Components 1.4% Banks 3.3% Beverages-Non Alcoholic 0.2% Brewery 0.8% Building & Construction Production-Miscellaneous 0.7% Building Production-Cement/Aggregate 1.3% Building & Construct-Miscellaneous 1.3% Building-Heavy Construction 0.2% Capital Goods 1.0% Cash & Cash Equivalents 1.0% Cellular Telecom 1.0% Chemicals-Diversified 2.4% Commercial Banks Non-U.S. 8.6% Communications 0.2% Computers-Integrated Systems 0.2% Computers-Memory Devices 0.8% Consumer Durables & Apparel --^ Distribution/Wholesale 0.1% Distributors 0.1% Diversified Financial Services 1.6% Diversified Manufacturing Operations 0.6% Diversified Minerals 1.4% Electric Products-Miscellaneous 0.7% Electric-Integrated 3.2% Electric-Transmission 0.3% Electronic Components-Miscellaneous 0.3% Continued 95 International Equity Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Investment concentration as a percentage of net assets, by industry, continued: Finance-Consumer Loans 0.2% Finance-Investment Banker/Broker --^ Finance-Leasing Company 0.7% Finance-Other Services 1.1% Financial Services --^ Food & Staples Retailing 0.2% Food-Miscellaneous/Diversified 3.3% Food-Retail 1.1% Food-Wholesale/Distribution 0.2% Gas-Distribution 0.6% Import/Export 1.0% Insurance 0.9% Investment Companies 9.0% Life/Health Insurance 1.8% Materials 1.2% Medical Products 0.3% Medical-Drugs 6.4% Metal Processors & Fabrications 1.7% Metal-Copper 1.0% Metal-Diversified 0.5% Miscellaneous 1.5% Multi-Line Insurance 2.8% Multimedia 1.4% Non-Ferrous Metals --^ Office Automation & Equipment 0.8% Oil Company-Integrated 9.2% Oil Refining & Marketing --^ Property Trust 0.1% Real Estate 0.5% Regional Banks 0.1% Reinsurance 1.0% Retail-Apparel/Shoe 0.3% Retail-Convenience Store 0.1% Semiconductor Equipment 0.7% Steel-Producers 3.3% Steel-Specialty 0.1% Sugar 0.4% Technology Hardware & Equipment 1.0% Telecommunication Services 0.6% Telephone-Integrated 5.1% Television 0.1% Tobacco 0.7% Transportation 2.1% Transport-Marine 1.2% Transport-Services 0.4% Utilities 0.3% Water 1.1% Wireless Equipment 0.2% __^ Amount is less than 0.05% See notes to schedules of investments and notes to financial statements. Strategic Income Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Asset-Backed Securities (2.3%) Automobile ABS Other (0.9%) Susquehanna Auto Lease Trust, Series 2007-1, Class B, 5.31%, 7/14/10 (b) $ 1,000,000 $ 997,425 ------------ Other ABS (1.4%) Aerco, Ltd., Series 2A, Class A3, 2.92%, 7/15/25 (a) (b) (e) 909,602 700,393 Residential Asset Securities Corp., Series 2006-KS3, Class AI3, 2.63%, 4/25/36 (a) 1,000,000 921,690 ------------ 1,622,083 ------------ Total Asset-Backed Securities 2,619,508 ------------ Corporate Bonds (18.2%) Beverages-Non Alcoholic (0.4%) PepsiCo, Inc., 4.65%, 2/15/13 (c) 500,000 507,736 ------------ Cable TV (0.9%) COX Communications, Inc., 7.75%, 11/1/10 1,000,000 1,051,488 ------------ Commercial Banks-Eastern U.S. (0.8%) Emigrant Capital Trust, 5.21%, 12/10/33 (a) (b) 1,000,000 978,367 ------------ Commercial Banks-Southern U.S. (1.4%) First Tennessee Capital II, Series B, 6.30%, 4/15/34, (Callable 4/15/09 @100) 1,500,000 1,102,914 Union Planters Corp., 4.38%, 12/1/10 500,000 475,128 ------------ 1,578,042 ------------ Electric-Integrated (1.2%) FPL Group Capital, Inc., 6.65%, 6/15/67, (Callable 6/15/17 @ 100) (a) 1,000,000 864,961 Public Service Co. of Oklahoma, Series C, 4.85%, 9/15/10 500,000 501,566 ------------ 1,366,527 ------------ Finance-Consumer Loans (1.5%) SLM Corp., Series CPI, 5.06%, 4/1/09 (a) 1,000,000 939,760 SLM Corp., Series CPI, 6.06%, 11/21/13 (a) 1,000,000 763,140 ------------ 1,702,900 ------------ Finance-Investment Banker/Broker (1.2%) Bear Stearns Cos., Inc. (The), 4.65%, 7/2/18 1,000,000 850,406 Lehman Brothers Holdings Capital Trust V, 5.86%, 5/31/12 (a) (f) 1,000,000 530,000 ------------ 1,380,406 ------------ Continued 96 Strategic Income Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds, continued Finance-Mortgage Loan/Banker (0.1%) Countrywide Home Loans, Inc., 5.63%, 7/15/09 (c) $ 100,000 $ 98,079 ------------ Finance-Other Services (0.8%) Cullen Frost Cap Trust I, 4.23%, 3/1/34, (Callable 3/01/09 @100) (a) 1,000,000 929,635 ------------ Financial Guarantee Insurance (0.4%) Radian Group, Inc., 5.63%, 2/15/13 1,000,000 463,759 ------------ Food-Miscellaneous/Diversified (0.8%) General Mills, Inc., 5.20%, 3/17/15 400,000 393,609 Kellogg Co., 5.13%, 12/3/12 500,000 505,470 ------------ 899,079 ------------ Insurance Brokers (0.3%) Marsh & McLennan Cos., Inc., 5.88%, 8/1/33 500,000 403,632 ------------ Money Center Banks (1.3%) Deutsche Bankers Trust Corp., 7.25%, 10/15/11 1,000,000 1,065,120 RBS Capital Trust B, 6.80%, 9/30/08 (f) 500,000 443,125 ------------ 1,508,245 ------------ Multimedia (1.8%) Time Warner Entertainment Co. L.P., 8.88%, 10/1/12 1,500,000 1,632,074 Walt Disney Co. (The), 4.70%, 12/1/12 (c) 500,000 503,468 ------------ 2,135,542 ------------ Reinsurance (0.4%) Berkshire Hathaway Finance Corp., 4.60%, 5/15/13 (b) 500,000 498,140 ------------ Real Estate Investment Trusts (0.9%) Developers Diversified Realty Corp., 3.88%, 1/30/09 1,000,000 990,365 ------------ Retail-Discount (0.8%) Wal-Mart Stores, Inc., 4.25%, 4/15/13 (c) 900,000 895,193 ------------ Retail-Drug Store (0.6%) CVS Pass Through Trust, 7.77%, 1/10/12 (b) 720,277 749,041 ------------ Special Purpose Entity (0.8%) HVB Funding Trust I, 8.74%, 6/30/31, (Callable 6/30/29 @ 100) (b) 1,000,000 874,915 ------------ Continued Principal Amount Value ------------ ------------ Corporate Bonds, continued Super-Regional Banks-U.S. (1.5%) Bank of America Corp., 8.00%, 1/30/18 (a) (c) (f) $ 400,000 $ 369,000 PNC Financial Services Group, Inc., 8.25%, 5/21/13 (a) (g) 500,000 479,238 Wells Fargo Bank NA, 5.95%, 8/26/36 (c) 1,000,000 877,064 ------------ 1,725,302 ------------ Wireless Equipment (0.3%) Motorola, Inc., 6.50%, 11/15/28 (c) 500,000 371,538 ------------ Total Corporate Bonds 21,107,931 ------------ Foreign Bonds (7.8%) Commercial Banks Non-U.S. (1.4%) HBOS PLC, 5.38%, 11/1/13 (a) (b) (f) 2,000,000 1,691,728 ------------ Diversified Operations (0.9%) Hutchison Whampoa International, Ltd., 6.50%, 2/13/13 (b) 1,000,000 1,026,560 ------------ Investment Management/Advisor Services (0.4%) Amvescap PLC, 5.38%, 2/27/13 500,000 462,112 ------------ Multi-Line Insurance (0.7%) AXA SA, 6.46%, 12/14/18 (a) (b) (f) 1,000,000 803,520 ------------ Sovereign (3.5%) Australia Government Bond, Series 909, 7.50%, 9/15/09 AUD 1,500,000 1,427,244 Brazil, Federal Republic, 6.00%, 8/15/10 (e) BRL 1,000,000 1,091,311 Mexico Government International Bond, 6.75%, 9/27/34 (c) $ 1,000,000 1,075,500 Russia Government International Bond, 8.25%, 3/31/10 (b) 444,469 461,670 ------------ 4,055,725 ------------ Special Purpose Banks (0.9%) Korea Development Bank, 3.88%, 3/2/09 1,000,000 998,203 ------------ Total Foreign Bonds 9,037,848 ------------ Mortgage-Backed Securities (6.2%) CMBS Other (1.7%) Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A2, 5.66%, 11/15/44 1,000,000 973,750 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 1,000,000 998,363 ------------ 1,972,113 ------------ Continued 97 Strategic Income Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued WL Collateral CMO Other (3.2%) Bear Stearns Asset Backed Securities Trust, Series 2003-AC7, Class A2, 5.25%, 1/25/34 $ 546,979 $ 489,350 Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-48, Class 2A3, 4.56%, 10/25/33 (a) 1,168,906 1,074,628 Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB5, Class 4A1, 5.01%, 4/20/35 (a) 342,242 299,536 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.76%, 12/25/32 (a) 30,910 30,583 Wells Fargo Mortgage Backed Securities Trust, Series 2004-X, Class 1A5, 4.93%, 11/25/34 (a) 1,000,000 892,730 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR10, Class 2A14, 4.11%, 6/25/35 (a) 1,000,000 970,361 ------------ 3,757,188 ------------ WL Collateral CMO Sequential (1.3%) JP Morgan Mortgage Trust, Series 2006-A3, Class 2A1, 5.63%, 5/25/36 (a) 826,903 781,108 JP Morgan Mortgage Trust, Series 2007-A2, Class 4A1M, 5.80%, 4/25/37 (a) 811,875 746,123 ------------ 1,527,231 ------------ Total Mortgage-Backed Securities 7,256,532 ------------ U.S. Government Agencies (4.6%) Fannie Mae (0.4%) 4.22%, 7/1/18 (a) 418,322 420,111 ------------ Freddie Mac (2.4%) 6.50%, 9/1/22 872,303 903,875 5.00%, 9/15/25 727,849 736,002 7.23%, 10/1/32 (a) 155,936 157,723 4.83%, 1/1/37 (a) 951,109 956,418 ------------ 2,754,018 ------------ Government National Mortgage Association (1.8%) 5.49%, 8/16/27 (a) 1,150,000 1,163,066 4.89%, 7/16/34 1,000,000 952,494 ------------ 2,115,560 ------------ Total U.S. Government Agencies 5,289,689 ------------ Continued Shares Value ------------ ------------ Common Stocks (5.2%) Beverages (0.3%) Diageo PLC ADR (c) 4,200 $ 295,596 PepsiCo, Inc. (c) 1,100 73,216 ------------ 368,812 ------------ Commercial Banks (0.8%) US Bancorp (c) 11,600 355,076 Wells Fargo & Co. (c) 18,390 556,665 ------------ 911,741 ------------ Diversified Financial Services (0.3%) Bank of America Corp. (c) 11,500 378,350 ------------ Electric Utilities (0.7%) Duke Energy Corp. (c) 14,900 261,942 Entergy Corp. (c) 2,750 294,030 Southern Co. (c) 8,700 307,893 ------------ 863,865 ------------ Food Products (0.2%) Kraft Foods, Inc., Class A (c) 8,974 285,553 ------------ Multi-Utilities (0.3%) Wisconsin Energy Corp. (c) 8,300 374,496 ------------ Oil & Gas (0.2%) Spectra Energy Corp. (c) 7,500 203,775 ------------ Real Estate Investment Trusts (1.6%) Annaly Capital Management, Inc. (c) 28,000 421,960 HCP, Inc. (c) 7,650 275,935 Kimco Realty Corp. (c) 8,550 301,730 Public Storage, A Shares (c) 12,000 301,200 Vornado Realty Trust 2,800 266,196 Weingarten Realty Investors (c) 7,025 214,192 ------------ 1,781,213 ------------ Tobacco (0.8%) Altria Group, Inc. 12,850 261,498 Philip Morris International, Inc. 12,850 663,702 ------------ 925,200 ------------ Total Common Stocks 6,093,005 ------------ Investment Companies (27.8%) American Income Fund, Inc. (c) 135,400 970,818 BlackRock Income Opportunity Trust, Inc. (c) 47,500 456,475 Eaton Vance Tax-Advantaged Dividend Income Fund 23,600 516,368 ING Prime Rate Trust (c) 160,400 872,576 MFS Government Markets Income Trust (c) 51,484 355,240 Rivus Bond Fund 77,000 1,247,400 State Street Navigator Securities Lending Portfolio (h) 26,566,223 26,566,223 Continued 98 Strategic Income Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investment Companies, continued Templeton Global Income Fund (c) 61,374 $ 544,387 Van Kampen Senior Income Trust 152,000 834,480 ------------ Total Investment Companies 32,363,967 ------------ Preferred Stocks (44.0%) Cable TV (1.4%) Comcast Corp., 7.00% (c) 20,000 457,600 Comcast Corp., Series B, 7.00% (c) 50,000 1,166,000 ------------ 1,623,600 ------------ Closed-End Funds (1.0%) Source Capital, Inc., 2.40% 35,600 1,155,932 ------------ Commercial Banks-Eastern U.S. (0.7%) HSBC USA, Inc., Series G, 4.00% (a) 60,000 828,000 ------------ Commercial Banks Non-U.S. (1.5%) Barclays Bank PLC, 8.13% (c) 36,000 860,400 Barclays Bank PLC, Series 2, 6.63% (c) 46,900 939,407 ------------ 1,799,807 ------------ Diversified Financial Services (3.9%) Citigroup Capital VII, 7.13% (c) 124,925 2,603,437 General Electric Capital Corp., 6.10% (c) 19,000 470,060 General Electric Capital Corp., 6.63% (c) 59,000 1,489,160 ------------ 4,562,657 ------------ Electric-Integrated (3.3%) American Electric Power Co., Inc., 8.75% (c) 16,000 417,280 Constellation Energy Group, Inc., Series A, 8.63% (c) 38,000 948,860 Entergy Arkansas, Inc., 6.00% (c) 70,600 1,741,702 Entergy Mississippi, Inc., 6.00% 29,300 720,780 ------------ 3,828,622 ------------ Electric Utilities (0.7%) Xcel Energy, Inc., 7.60% 33,000 828,300 ------------ Finance-Consumer Loans (0.6%) HSBC Finance Corp., 6.88% (c) 32,800 720,288 ------------ Finance-Credit Card (0.8%) MBNA Capital D, Series D, 8.13% 37,800 907,200 ------------ Finance-Investment Banker/Broker (3.0%) Bear Stearns Capital Trust III, 7.80% (c) 26,100 618,048 Credit Suisse Guernsey, Ltd., 7.90% (c) 16,000 394,560 Goldman Sachs Group, Inc. (The), Series A, 3.75% (a) (c) 40,000 618,400 Lehman Brothers Holdings, Inc., Series G, 3.21% (a) (c) 19,900 177,707 Continued Shares Value ------------ ------------ Preferred Stocks, continued Finance-Investment Banker/Broker, continued Lehman Brothers Holdings, Inc., Series J, 7.95% (c) 26,000 $ 410,280 Merrill Lynch & Co., Inc., Series G, 3.40% (a) 80,000 864,000 Merrill Lynch Preferred Capital Trust III, 7.00% (c) 9,800 182,868 Morgan Stanley Capital Trust VIII, 6.45% 10,800 211,680 ------------ 3,477,543 ------------ Financial Guarantee Insurance (0.7%) Financial Security Assurance Holdings, Ltd., 6.25% 100,350 804,807 ------------ Investment Managment/ Advisor Services (0.7%) Deutsche Bank Contingent Capital Trust III, 7.60% 36,000 844,200 ------------ Life/Health Insurance (0.4%) AAG Holding Co., Inc., 7.25% (c) 20,000 407,000 ------------ Miscellaneous (0.5%) Duke Realty Corp., Series L, 6.60% (c) 30,000 550,200 ------------ Multi-Line Insurance (2.9%) Aegon NV, Series 1, 4.00% (a) (c) 51,900 804,450 ING Groep NV, 7.20% (c) 41,200 881,680 ING Groep NV, 8.50% (c) 20,000 500,000 MetLife, Inc., Series A, 4.00% (a) 40,000 614,000 MetLife, Inc., Series B, 6.50% (c) 30,000 619,200 ------------ 3,419,330 ------------ Real Estate (0.9%) Realty Income Corp., Series E, 6.75% 50,000 1,062,000 ------------ Real Estate Investment Trusts (6.4%) CBL & Associates Properties, Inc., Series D, 7.38% (c) 20,500 354,650 Duke Realty Corp., Series M, 6.95% (c) 10,000 194,200 Harris Preferred Capital Corp., Series A, 7.38% (c) 31,800 609,288 HRPT Properties Trust, Series B, 8.75% (c) 13,358 312,577 Huntington Preferred Capital, Inc., 7.88% 15,507 340,224 Kimco Realty Corp., Series F, 6.65% (c) 39,994 789,881 Kimco Realty Corp., Series G, 7.75% (c) 40,000 927,600 Public Storage, Series L, 6.75% 30,000 601,500 Public Storage, Series M, 6.63% (c) 40,000 796,400 Continued 99 Strategic Income Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Preferred Stocks, continued Real Estate Investment Trusts, continued Public Storage, Series N, 7.00% (c) 40,000 $ 864,400 Wachovia Preferred Funding Corp., Series A, 7.25% (c) 84,500 1,571,700 ------------ 7,362,420 ------------ S&L/Thrifts-Southern U.S. (0.3%) BBC Capital Trust II, 8.50% 31,000 358,050 ------------ Semiconductors & Semiconductor Equipment (0.6%) First Tennessee Bank NA, 3.75% (a) (b) 1,000 745,625 ------------ Sovereign Agency (5.9%) Fannie Mae, 7.63% 40,000 683,600 Fannie Mae, 8.25% 40,000 699,600 Fannie Mae, 8.25% (c) 160,000 2,686,400 Freddie Mac, 5.00% (c) 20,000 403,000 Freddie Mac, 5.10% (c) 10,000 221,000 Freddie Mac, 5.70% 25,500 650,250 Freddie Mac, 8.38% (a) (c) 90,000 1,525,500 ------------ 6,869,350 ------------ Special Purpose Entity (1.8%) Corporate-Backed Trust Certificates, Series AIG, 6.13% 60,000 1,014,000 Corporate-Backed Trust Certificates, Series HSBC, 6.25% 33,500 637,505 CORTS Trust for Sherwin-Williams, Series III, 7.25% (c) 17,600 408,144 ------------ 2,059,649 ------------ Super-Regional Banks-U.S. (5.5%) BAC Capital Trust I, 7.00% (c) 24,500 544,145 BAC Capital Trust III, 7.00% (c) 48,600 1,099,818 Bank of America Corp., 8.20% (c) 20,000 485,000 US Bancorp, 7.88% (c) 36,000 928,080 US Bancorp, Series B, 3.50% (a) (c) 20,000 272,200 USB Capital XII, 6.30% 40,000 840,000 Wells Fargo Capital VII, 5.85% 33,500 722,930 Wells Fargo Capital XII, 7.88% 58,000 1,470,880 ------------ 6,363,053 ------------ Television (0.5%) CBS Corp., 7.25% 26,000 569,660 ------------ Total Preferred Stocks 51,147,293 ------------ Continued Shares Value ------------ ------------ Investments in Affiliates (7.0%) Fifth Third Institutional Money Market Fund (d) 8,128,372 $ 8,128,372 ------------ Total Investments in Affiliates 8,128,372 ------------ Total Investments (Cost $160,200,220) - 123.1% 143,044,145 Liabilities in excess of other assets - (23.1)% (26,878,555) ------------ ------------ NET ASSETS - 100.0% $116,165,590 ============ Notes to Schedule of Investments (a) Variable rate security. Rate presented represents rate in effect at July 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) All or part of this security was on loan. (d) Investment is in Institutional Shares of underlying fund. (e) The Fund's securities were fair valued at July 31, 2008 using procedures approved by the Board of Trustees. (f) Perpetual Maturity. Callable any time after first call date. Maturity date is next call date. (g) Represents investments of cash collateral received in connection with securities lending. The following abbreviations are used in the Schedule of Investments: ABS - Asset-Backed Security ADR - American Depositary Receipt AUD - Australian Dollar BRL - Brazilian Real CMBS - Commercial Mortgage-Backed Security CMO - Collateralized Mortgage Obligation CORTS - Corporate-Backed Trust Security CPI - Consumer Price Index WL - Whole Loan See notes to schedules of investments and notes to financial statements. 100 LifeModel Aggressive(SM) Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investments in Affiliates (a) (100.1%) Fifth Third All Cap Value Fund 872,536 $ 15,688,194 Fifth Third Disciplined Large Cap Value Fund 1,920,403 22,046,227 Fifth Third High Yield Bond Fund 81,384 743,852 Fifth Third Institutional Money Market Fund 599,554 599,554 Fifth Third International Equity Fund 3,057,453 37,423,223 Fifth Third Mid Cap Growth Fund* 1,255,945 15,109,018 Fifth Third Quality Growth Fund 1,293,398 21,444,545 Fifth Third Short Term Bond Fund 398,469 3,701,775 Fifth Third Small Cap Growth Fund* 956,504 7,738,115 Fifth Third Small Cap Value Fund 480,235 8,183,212 Fifth Third Structured Large Cap Plus Fund 1,739,056 25,494,565 Fifth Third Total Return Bond Fund 1,138,070 10,276,773 ------------ Total Investments in Affiliates 168,449,053 ------------ Total Investments (Cost $164,550,846) - 100.11% 168,449,053 Liabilities in excess of other assets - (0.11)% (190,954) ------------ NET ASSETS - 100.0% $168,258,099 ============ 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 Moderately Aggressive(SM) Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investments in Affiliates (a) (100.2%) Fifth Third All Cap Value Fund 1,150,339 $ 20,683,105 Fifth Third Disciplined Large Cap Value Fund 2,501,379 28,715,827 Fifth Third High Yield Bond Fund 445,618 4,072,948 Fifth Third Institutional Money Market Fund 993,237 993,237 Fifth Third International Equity Fund 4,034,447 49,381,628 Fifth Third Mid Cap Growth Fund* 1,657,837 19,943,782 Fifth Third Quality Growth Fund 1,685,425 27,944,339 Fifth Third Short Term Bond Fund 2,180,743 20,259,099 Fifth Third Small Cap Growth Fund* 1,263,159 10,218,954 Fifth Third Small Cap Value Fund 632,973 10,785,868 Fifth Third Structured Large Cap Plus Fund 2,363,326 34,646,359 Fifth Third Total Return Bond Fund 6,227,123 56,230,924 ------------ Total Investments in Affiliates 283,876,070 ------------ Total Investments (Cost $277,422,597) - 100.2% 283,876,070 Liabilities in excess of other assets - 0.2% (631,744) ------------ NET ASSETS - 100.0% $283,244,326 ============ 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. 101 LifeModel Moderate(SM) Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investments in Affiliates (a) (100.1%) Fifth Third All Cap Value Fund 1,232,274 $ 22,156,293 Fifth Third Disciplined Large Cap Value Fund 2,786,285 31,986,551 Fifth Third High Yield Bond Fund 1,126,222 10,293,670 Fifth Third Institutional Money Market Fund 36,677 36,677 Fifth Third International Equity Fund 4,321,308 52,892,805 Fifth Third Mid Cap Growth Fund* 1,775,855 21,363,531 Fifth Third Quality Growth Fund 1,877,295 31,125,556 Fifth Third Short Term Bond Fund 5,524,584 51,323,386 Fifth Third Small Cap Growth Fund* 1,352,637 10,942,832 Fifth Third Small Cap Value Fund 677,840 11,550,391 Fifth Third Structured Large Cap Plus Fund 2,363,908 34,654,889 Fifth Third Total Return Bond Fund 15,770,567 142,408,222 ------------ Total Investments in Affiliates 420,734,803 ------------ Total Investments (Cost $431,370,008) - 100.1% 420,734,803 Liabilities in excess of other assets - (0.1)% (624,758) ------------ NET ASSETS - 100.0% $420,110,045 ============ 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 Moderately Conservative(SM) Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investments in Affiliates (a) (100.0%) Fifth Third All Cap Value Fund 192,754 $ 3,465,720 Fifth Third Disciplined Large Cap Value Fund 375,523 4,311,005 Fifth Third High Yield Bond Fund 270,514 2,472,496 Fifth Third Institutional Money Market Fund 908,728 908,728 Fifth Third International Equity Fund 658,872 8,064,600 Fifth Third Mid Cap Growth Fund* 277,866 3,342,730 Fifth Third Quality Growth Fund 252,770 4,190,921 Fifth Third Short Term Bond Fund 1,336,921 12,419,994 Fifth Third Small Cap Growth Fund* 212,051 1,715,489 Fifth Third Small Cap Value Fund 106,147 1,808,748 Fifth Third Structured Large Cap Plus Fund 461,796 6,769,927 Fifth Third Total Return Bond Fund 3,855,489 34,815,061 ------------ Total Investments in Affiliates 84,285,419 ------------ Total Investments (Cost $85,449,475) - 100.0% 84,285,419 Liabilities in excess of other assets - (0.0)% (30,173) ------------ NET ASSETS - 100.0% $ 84,255,246 ============ 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. 102 LifeModel Conservative(SM) Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investments in Affiliates (a) (100.1%) Fifth Third All Cap Value Fund 59,324 $ 1,066,644 Fifth Third Disciplined Large Cap Value Fund 116,079 1,332,586 Fifth Third High Yield Bond Fund 218,733 1,999,220 Fifth Third Institutional Money Market Fund 742,962 742,962 Fifth Third International Equity Fund 197,765 2,420,641 Fifth Third Mid Cap Growth Fund * 85,632 1,030,160 Fifth Third Quality Growth Fund 78,206 1,296,653 Fifth Third Short Term Bond Fund 1,072,607 9,964,521 Fifth Third Small Cap Growth Fund * 65,210 527,547 Fifth Third Small Cap Value Fund 32,391 551,940 Fifth Third Structured Large Cap Plus Fund 142,257 2,085,494 Fifth Third Total Return Bond Fund 3,062,029 27,650,118 ------------ Total Investments in Affiliates 50,668,486 ------------ Total Investments (Cost $53,653,608) - 100.1% 50,668,486 Liabilities in excess of other assets - (0.1%) (42,242) ------------ NET ASSETS - 100.0% $ 50,626,244 ============ 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. High Yield Bond Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds (83.2%) Aerospace (1.1%) BE Aerospace, Inc., 8.50%, 7/1/18, (Callable 7/1/13 @ 104.25) (b) $ 246,000 $ 253,995 Moog, Inc., 7.25%, 6/15/18, (Callable 6/15/13 @ 103.625) 324,000 316,710 ------------ 570,705 ------------ Automotive & Auto Parts (7.4%) American Axle & Manufacturing, Inc., 7.88%, 3/1/17, (Callable 3/1/12 @ 103.938) (b) 708,000 467,280 Asbury Automotive Group, Inc., 8.00%, 3/15/14, (Callable 3/15/09 @ 104) (b) 750,000 615,000 Asbury Automotive Group, Inc., 7.63%, 3/15/17, (Callable 3/15/12 @ 103.813) 18,000 13,298 AutoNation, Inc., 7.00%, 4/15/14, (Callable 4/15/09 @ 105.25) 112,000 96,460 Ford Motor Credit Co. LLC, 7.88%, 6/15/10 875,000 745,205 Ford Motor Credit Co. LLC, 8.00%, 12/15/16 (b) 601,000 424,740 GMAC LLC, 6.88%, 9/15/11 750,000 495,226 GMAC LLC, 8.00%, 11/1/31 (b) 750,000 420,256 Penske Auto Group, Inc., 7.75%, 12/15/16, (Callable 12/15/11 @ 103.875) 548,000 452,100 ------------ 3,729,565 ------------ Broadcasting (2.4%) Clear Channel Communications, Inc., 4.25%, 5/15/09 642,000 621,135 Fisher Communications, Inc., 8.63%, 9/15/14, (Callable 9/15/09 @ 104.3125) 504,000 516,600 Radio One, Inc., Series B, 8.88%, 7/1/11 (b) 72,000 60,660 ------------ 1,198,395 ------------ Building Materials (2.9%) Gibraltar Industries, Inc., Series B, 8.00%, 12/1/15, (Callable 12/1/10 @ 104) (b) 750,000 622,500 US Concrete, Inc., 8.38%, 4/1/14, (Callable 4/1/09 @ 104.188) (b) 1,000,000 830,000 ------------ 1,452,500 ------------ Cable/Satellite TV (1.0%) GCI, Inc., 7.25%, 2/15/14, (Callable 2/15/09 @ 103.625) 582,000 506,340 ------------ Cable TV (1.3%) Direct Holdings LLC, 7.63%, 5/15/16, (Callable 5/15/12 @ 103.813) 648,000 643,140 ------------ Capital Goods (2.1%) Baldor Electric Co., 8.63%, 2/15/17, (Callable 2/15/12 @ 104.313) (b) 101,000 101,253 Continued 103 High Yield Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds, continued Capital Goods, continued Belden, Inc., 7.00%, 3/15/17, (Callable 3/15/12 @ 103.5) $ 110,000 $ 104,225 General Cable Corp., 7.13%, 4/1/17, (Callable 4/1/12 @ 103.563) (b) 18,000 17,010 Mueller Water Products, Inc., 7.38%, 6/1/17, (Callable 6/1/12 @ 103.688)(b) 1,060,000 869,200 ------------ 1,091,688 ------------ Chemicals (1.5%) PolyOne Corp., 8.88%, 5/1/12 (b) 750,000 746,250 ------------ Consumer Products (4.9%) Jarden Corp., 7.50%, 5/1/17, (Callable 5/1/12 @ 103.75) (b) 1,098,000 955,260 Sealy Mattress Co., 8.25%, 6/15/14, (Callable 6/15/09 @ 104.125) (b) 630,000 522,900 Visant Holding Corp., 8.75%, 12/1/13, (Callable 12/1/08 @ 106.563) (b) 1,077,000 1,025,842 ------------ 2,504,002 ------------ Containers (1.3%) Solo Cup Co., 8.50%, 2/15/14, (Callable 2/15/09 @ 104.25) (b) 750,000 641,250 ------------ Distribution/Wholesale (1.6%) Ace Hardware Corp., 9.13%, 6/1/16 (Callable 6/1/12 @ 104.563) 864,000 786,240 ------------ Energy (8.3%) Basic Energy Services, Inc., 7.13%, 4/15/16, (Callable 4/15/11 @ 103.563) 750,000 701,250 Berry Petroleum Co., 8.25%, 11/1/16 (Callable 11/1/11 @ 104.125) 854,000 841,190 Chesapeake Energy Corp., 6.50%, 8/15/17 (b) 149,000 139,315 Dresser-Rand Group, Inc., 7.38%, 11/1/14, (Callable 11/1/09 @ 103.688) (b) 850,000 841,500 Forest Oil Corp., 7.25%, 6/15/19, (Callable 6/15/12 @ 103.625) (b) 12,000 11,280 Helix Energy Solutions Group, Inc., 9.50%, 1/15/16, (Callable 1/15/12 @ 104.75) 255,000 255,000 Hilcorp Energy I L.P./Hilcorp Finance Co., 7.75%, 11/1/15, (Callable 11/1/10 @ 103.875) 409,000 375,257 Hilcorp Energy I L.P./Hilcorp Finance Co., 9.00%, 6/1/16, (Callable 6/1/11 @ 104.5) 87,000 85,260 United Refining Co., Series 2, 10.50%, 8/15/12, (Callable 8/15/08 @ 105.25) (b) 1,022,000 950,460 ------------ 4,200,512 ------------ Continued Principal Amount Value ------------ ------------ Corporate Bonds, continued Financial Services (0.7%) Nuveen Investments, Inc., 10.50%, 11/15/15, (Callable 11/15/11 @ 105.25) $ 412,000 $ 370,800 ------------ Food/Beverage/Tobacco (0.1%) Del Monte Corp., 8.63%, 12/15/12 (b) 79,000 80,778 ------------ Healthcare (7.8%) Advanced Medical Optics, Inc., 7.50%, 5/1/17, (Callable 5/1/12 @ 103.75) (b) 742,000 667,800 Axcan Intermediate Holdings, Inc., 9.25%, 3/1/15, (Callable 3/1/11 @ 106.9375) 500,000 502,500 Community Health Systems, Inc., 8.88%, 7/15/15, (Callable 7/15/11 @ 104.438) (b) 258,000 259,935 HCA, Inc., 5.75%, 3/15/14 769,000 640,192 HCA, Inc., 6.50%, 2/15/16 (b) 31,000 25,808 HCA, Inc., 9.63%, 11/15/16, (Callable 11/15/11 @ 104.813) (d) 357,000 367,710 IASIS Healthcare LLC/IASIS Capital Corp., 8.75%, 6/15/14, (Callable 6/15/09 @ 104.375) 371,000 371,928 Invacare Corp., 9.75%, 2/15/15, (Callable 2/15/11 @ 104.875) 637,000 637,000 Stewart Enterprises, Inc., 6.25%, 2/15/13, (Callable 2/15/09 @ 103.125) 250,000 240,625 Universal Hospital Services, Inc., 6.30%, 6/1/15, (Callable 6/1/09 @ 102) (a) 275,000 255,750 ------------ 3,969,248 ------------ Homebuilders/Real Estate (3.7%) Beazer Homes USA, Inc., 6.88%, 7/15/15, (Callable 7/15/10 @ 103.438) (b) 750,000 513,750 KB Home, 7.25%, 6/15/18 (b) 750,000 622,500 M/I Homes, Inc., 6.88%, 4/1/12 (b) 850,000 739,500 ------------ 1,875,750 ------------ Media (1.6%) Lamar Media Corp., 7.25%, 1/1/13 (b) 311,000 297,005 Lamar Media Corp., 6.63%, 8/15/15, (Callable 8/15/10 @ 103.313) (b) 70,000 63,000 Lamar Media Corp., Series B, 6.63%, 8/15/15, (Callable 8/15/10 @ 103.313) 209,000 188,100 WMG Acquisition Corp., 7.38%, 4/15/14, (Callable 4/15/09 @ 103.688) (b) 362,000 285,980 ------------ 834,085 ------------ Paper (2.3%) Buckeye Technologies, Inc., 8.50%, 10/1/13, (Callable 10/1/08 @ 104.25) 750,000 748,125 Continued 104 High Yield Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds, continued Paper, continued International Paper Co., 7.95%, 6/15/18 $ 432,000 $ 429,579 ------------ 1,177,704 ------------ Publishing/Printing (3.6%) Cenveo Corp., 7.88%, 12/1/13, (Callable 12/1/08 @ 103.938) 1,112,000 931,300 Dex Media West LLC, Series B, 9.88%, 8/15/13, (Callable 8/15/08 @ 104.938) 195,000 153,075 Dex Media, Inc., 8.00%, 11/15/13, (Callable 11/15/08 @ 104) (b) 184,000 112,240 Idearc, Inc., 8.00%, 11/15/16, (Callable 11/15/11 @ 104) (b) 216,000 98,280 RH Donnelley Corp., 8.88%, 10/15/17 231,000 110,880 Valassis Communications, Inc., 8.25%, 3/1/15, (Callable 3/1/11 @ 104.125) (b) 521,000 437,640 ------------ 1,843,415 ------------ Services (3.5%) ARAMARK Corp., 8.50%, 2/1/15, (Callable 2/1/11 @ 104.25) (b) 616,000 613,690 Ashtead Capital, Inc., 9.00%, 8/15/16, (Callable 8/15/11 @ 104.5) (b) 480,000 422,400 Expedia, Inc., 8.50%, 7/1/16, (Callable 7/1/12 @ 104.25) (b) 311,000 295,450 United Rentals North America, Inc., 6.50%, 2/15/12 (b) 231,000 208,478 United Rentals North America, Inc., 7.75%, 11/15/13, (Callable 11/15/08 @ 103.875) (b) 272,000 218,960 ------------ 1,758,978 ------------ Steel (2.0%) PNA Group, Inc., 10.75%, 9/1/16, (Callable 9/1/11 @ 105.375) 299,000 355,062 Ryerson, Inc., 12.00%, 11/1/15, (Callable 11/1/11 @ 106) 58,000 56,550 Steel Dynamics, Inc., 6.75%, 4/1/15 (Callable 4/1/11 @ 103.375) 221,000 207,740 Tube City IMS Corp., 9.75%, 2/1/15 (b) (Callable 2/1/11 @ 104.875) (b) 405,000 376,650 ------------ 996,002 ------------ Steel-Specialty (0.6%) Steel Dynamics, Inc., 7.38%, 11/1/12 314,000 310,860 ------------ Technology (4.3%) First Data Corp., 9.88%, 9/24/15, (Callable 9/30/11 @ 104.938) 756,000 669,060 IKON Office Solutions, Inc., 7.75%, 9/15/15, (Callable 9/15/10 @ 103.875) 750,000 750,000 Sungard Data Systems, Inc., 9.13%, 8/15/13, (Callable 8/15/09 @ 104.563) (b) 750,000 766,875 ------------ 2,185,935 ------------ Continued Principal Amount Value ------------ ------------ Corporate Bonds, continued Telecommunications (7.5%) Centennial Communications Corp., 10.13%, 6/15/13 $ 867,000 $ 901,680 Cincinnati Bell, Inc., 8.38%, 1/15/14 (Callable 1/15/09 @ 104.1885) 1,011,000 962,978 Citizens Communications Co., 6.25%, 1/15/13 (b) 314,000 298,300 Cricket Communications, Inc., 9.38%, 11/1/14, (Callable 11/1/10 @ 104.6875) (b) 360,000 352,800 Cricket Communications, Inc., 10.00%, 7/15/15, (Callable 7/15/12 @ 105) 360,000 362,700 Nextel Communications, Inc., Series E, 6.88%, 10/31/13, (Callable 10/31/08 @ 103.438) 277,000 217,445 Sprint Capital Corp., 8.75%, 3/15/32 277,000 247,222 Windstream Corp., 8.13%, 8/1/13 (b) 181,000 182,810 Windstream Corp., 8.63%, 8/1/16 (Callable 8/1/11 @ 104.313) 258,000 261,225 ------------ 3,787,160 ------------ Transportation Ex Air/Rail (0.6%) Overseas Shipholding Group, Inc., 8.75%, 12/1/13 280,000 291,200 ------------ Utilities (9.1%) AES Corp. (The), 8.00%, 10/15/17 (b) 201,000 197,985 Atlas Pipeline Partners L.P., 8.75%, 6/15/18, (Callable 6/15/13 @ 104.375) 328,000 322,260 Copano Energy LLC, 8.13%, 3/1/16, (Callable 3/1/11 @ 104.0625) 190,000 185,250 Dynegy Holdings, Inc., 7.75%, 6/1/19 647,000 595,240 Edison Mission Energy, 7.50%, 6/15/13 (b) 165,000 165,825 Edison Mission Energy, 7.00%, 5/15/17 251,000 237,195 Holly Energy Partners L.P., 6.25%, 3/1/15, (Callable 3/1/10 @ 103.125) 500,000 442,500 Markwest Energy Partners L.P., 8.75%, 4/15/18, (Callable 4/15/13 @ 104.375) 83,000 82,585 Mirant North America LLC, 7.38%, 12/31/13, (Callable 12/31/09 @ 103.688) (b) 250,000 250,000 PNM Resources, Inc., 9.25%, 5/15/15 (b) 430,000 437,525 Reliant Energy, Inc., 7.63%, 6/15/14 85,000 82,025 Sabine Pass Liquified Natural Gas L.P., 7.25%, 11/30/13 (b) 734,000 634,910 Targa Resources Partners L.P., 8.25%, 7/1/16, (Callable 7/1/12 @ 104.125) 517,000 485,980 TEPPCO Partners L.P., 7.00%, 6/1/67, (Callable 6/1/17 @ 100) (a) 550,000 475,336 ------------ 4,594,616 ------------ Total Corporate Bonds 42,147,118 ------------ Continued 105 High Yield Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Foreign Bonds (14.7%) Cable/Satellite TV (0.8%) Videotron Ltee, 9.13%, 4/15/18 (Callable 4/15/13 @ 104.563) $ 300,000 $ 312,750 Virgin Media Finance PLC, 8.75%, 4/15/14, (Callable 4/15/09 @ 104.375) 72,000 67,140 ------------ 379,890 ------------ Chemicals (1.6%) LyondellBasell Industries AF SCA, 8.38%, 8/15/15, (Callable 8/15/10 @ 104.188) 1,308,000 804,420 ------------ Electronic Components-Miscellaneous (0.5%) NXP BV/NXP Funding LLC, 9.50%, 10/15/15, (Callable 10/15/11 @104.75) (b) 391,000 270,768 ------------ Energy (2.9%) CHC Helicopter Corp., 7.38%, 5/1/14, (Callable 5/1/09 @ 103.688) 770,000 799,838 Connacher Oil and Gas, Ltd., 10.25%, 12/15/15, (Callable 12/15/11 @ 105.125) 615,000 644,212 ------------ 1,444,050 ------------ Media (2.0%) Quebecor Media, Inc., 7.75%, 3/15/16 (Callable 3/15/11 @ 103.875) 1,111,000 1,024,898 ------------ Metals/Mining (2.0%) Novelis, Inc., 7.25%, 2/15/15, (Callable 2/15/10 @ 103.625) 1,100,000 1,017,500 ------------ Technology (1.4%) NXP BV/NXP Funding LLC, 7.88%, 10/15/14 100,000 83,250 Sensata Technologies BV, 8.00%, 5/1/14, (Callable 5/1/10 @ 104) (b) 714,000 606,900 ------------ 690,150 ------------ Transportation Ex Air/Rail (1.9%) Stena AB, 7.50%, 11/1/13, (Callable 11/1/08 @ 103.75) 750,000 735,000 Stena AB, 7.00%, 12/1/16, (Callable 12/1/09 @ 103.5) 250,000 239,062 ------------ 974,062 ------------ Utilities (1.6%) Intergen NV, 9.00%, 6/30/17, (Callable 6/30/12 @ 104.5) 800,000 816,000 ------------ Total Foreign Bonds 7,421,738 ------------ Continued Shares ------------ Investment Companies (26.5%) State Street Navigator Securities Lending Portfolio (c) 13,409,342 $ 13,409,342 ------------ Total Investment Companies 13,409,342 ------------ Total Investments (Cost $67,692,251) - 124.4% 62,978,198 Liabilities in excess of other assets - (24.4)% (12,349,844) ------------ NET ASSETS - 100.0% $ 50,628,354 ============ Notes to Schedule of Investments (a) Variable rate security. Rate presented represents rate in effect at July 31, 2008. (b) All or part of this security was on loan. (c) Represents investments of cash collateral received in connection with securities lending. (d) PIK (payment-in-kind) security. Bond that pays interest in the form of additional bonds. See notes to schedules of investments and notes to financial statements. 106 Total Return Bond Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Asset-Backed Securities (9.1%) Automobile ABS Other (1.0%) Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 $ 72,404 $ 72,072 Hyundai Auto Receivables Trust, Series 2006-B, Class C, 5.25%, 5/15/13 (h) 2,665,000 2,607,524 Susquehanna Auto Lease Trust, Series 2007-1, Class B, 5.31%, 7/14/10 (b) 1,000,000 997,425 Truck Retail Installment Paper Corp., Series 2005-1A, Class A, 2.73%, 12/15/16 (a) (b) (h) 1,950,000 1,920,837 ------------ 5,597,858 ------------ Automobiles Sequential (0.9%) Hertz Vehicle Financing LLC, Series 2005-2A, Class A6, 5.08%, 11/25/11 (b) 3,000,000 2,821,012 Long Beach Auto Receivables Trust, Series 2007-A, Class A3, 4.97%, 10/15/11 1,200,000 1,186,080 Prestige Auto Receivables Trust, Series 2006-1A, Class A2, 5.25%, 6/17/13 (b) 1,430,178 1,433,790 ------------ 5,440,882 ------------ Home Equity Other (2.3%) Flagstar Home Equity Loan Trust, Series 2007-1A, Class AF2, 5.77%, 1/25/35 (b) 1,915,000 1,700,511 GMAC Mortgage Corp. Loan Trust, Series 2004-HE5, Class A4, 4.34%, 9/25/34 (a) 1,232,903 1,196,100 JP Morgan Mortgage Acquisition Corp., Series 2006-WF1, Class A4, 6.13%, 7/25/36 3,191,000 2,408,413 JP Morgan Mortgage Acquisition Corp., Series 2006-WF1, Class A5, 6.41%, 7/25/36 4,286,000 2,442,454 New Century Home Equity Loan Trust, Series 2005-A, Class A5W, 5.29%, 8/25/35 4,000,000 3,061,703 Renaissance Home Equity Loan Trust, Series 2005-2, Class AF4, 4.93%, 8/25/35 2,620,000 2,432,454 ------------ 13,241,635 ------------ Home Equity Sequential (0.3%) Irwin Home Equity Corp., Series 2006-3, Class 2A2, 5.83%, 9/25/37 (b) 1,225,000 921,904 Residential Funding Mortgage Securities II, Inc., Series 2006-HI3, Class A4, 6.31%, 2/25/36 (k) 1,500,000 765,723 ------------ 1,687,627 ------------ Continued Principal Amount Value ------------ ------------ Asset-Backed Securities, continued Manufactured Housing ABS Other (0.2%) Mid-State Trust, Series 2005-1, Class M2, 7.08%, 1/15/40 $ 1,211,944 $ 948,652 ------------ Manufactured Housing Sequential (0.5%) Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A4, 6.57%, 5/7/27 (a) 2,840,000 2,622,788 ------------ Other ABS (3.9%) Aerco, Ltd., Series 2A, Class A3, 2.92%, 7/15/25 (a) (b) (e) (h) 1,877,087 1,445,357 Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB7, Class AF4, 5.43%, 11/25/35 2,475,000 2,358,339 Credit-Based Asset Servicing and Securitization LLC, Series 2006-CB1, Class AF4, 5.44%, 1/25/36 6,375,000 5,041,229 Credit-Based Asset Servicing and Securitization LLC, Series 2006-CB2, Class AF2, 5.50%, 12/25/36 2,206,302 2,146,211 First Franklin Mortgage Loan Asset Backed Certificates, Series 2005-FFA, Class M3, 5.52%, 3/25/25 600,000 135,392 First Franklin Mortgage Loan Asset Backed Certificates, Series 2004-FF11, Class 1A2, 2.81%, 1/25/35 (a) 51,824 38,385 Marlin Leasing Receivables LLC, Series 2005-1A, Class A4, 4.75%, 8/15/12 (b) 1,848,626 1,854,765 Popular ABS Mortgage Pass-Through Trust, Series 2005-4, Class AF3, 4.98%, 9/25/35 (a) 1,003,822 1,000,416 Renaissance Home Equity Loan Trust, Series 2006-1, Class AF4, 6.01%, 5/25/36 1,645,000 1,503,934 Residential Asset Mortgage Products, Inc., Series 2002-RZ3, Class M1, 5.28%, 8/25/32 (e) 502,003 429,095 Residential Asset Mortgage Products, Inc., Series 2003-RZ5, Class A7, 4.97%, 9/25/33 2,955,269 2,639,931 SACO I, Inc., Series 2006-1, Class A, 2.63%, 9/25/35 (a) (h) 3,246,764 1,564,388 Small Business Administration, Series 2005-P10B, Class 1, 4.94%, 8/10/15 (h) 2,797,680 2,754,004 Squared CDO, Ltd., Series 2007-1A, Class B, 4.64%, 5/11/57 (a) (b) (e) (f) (k) 4,000,000 -- ------------ 22,911,446 ------------ Total Asset-Backed Securities 52,450,888 ------------ Continued 107 Total Return Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds (9.1%) Cable TV (0.1%) COX Communications, Inc., 5.50%, 10/1/15 $ 800,000 $ 764,747 ------------ Commercial Banks-Central U.S. (0.2%) National City Bank, 5.25%, 12/15/16 (b) 1,340,000 898,851 ------------ Commercial Banks-Eastern U.S. (0.2%) Manufacturers & Traders Trust Co., 4.29%, 4/1/13, (Callable 10/1/08 @ 100) (a) 1,075,000 930,316 Mercantile Bankshares Corp., Series B, 4.63%, 4/15/13 500,000 477,930 ------------ 1,408,246 ------------ Commercial Banks Non-U.S. (0.2%) Westpac Capital Trust IV, 5.26%, 3/31/16 (a) (b) (i) 1,445,000 1,183,585 ------------ Commercial Banks-Southern U.S. (1.2%) Hibernia Corp., 5.35%, 5/1/14 2,845,000 2,506,613 Regions Financial Corp., 7.00%, 3/1/11 1,275,000 1,223,174 Wachovia Bank NA, 5.85%, 2/1/37 (c) (h) 4,500,000 3,224,290 ------------ 6,954,077 ------------ Diversified Financial Services (0.2%) American Express Travel Related Services Co., Inc., 5.25%, 11/21/11 (b) 1,000,000 978,325 ------------ Electric-Integrated (0.8%) Florida Power Corp., Series A, 5.80%, 9/15/17 1,000,000 1,022,572 Public Service Electric & Gas Co., 5.00%, 8/15/14 1,200,000 1,185,805 Virginia Electric and Power Co., 5.95%, 9/15/17 1,000,000 1,006,841 Virginia Electric and Power Co., 6.35%, 11/30/37 1,450,000 1,411,142 ------------ 4,626,360 ------------ Finance-Commercial (0.2%) Caterpillar Financial Services Corp., 5.13%, 10/12/11 (c) 950,000 971,518 ------------ Finance-Consumer Loans (1.3%) HSBC Finance Corp., 6.38%, 10/15/11 (c) 2,000,000 2,047,974 John Deere Capital Corp., 7.00%, 3/15/12 (c) 3,950,000 4,241,328 John Deere Capital Corp., 5.50%, 4/13/17 1,225,000 1,215,553 ------------ 7,504,855 ------------ Continued Principal Amount Value ------------ ------------ Corporate Bonds, continued Finance-Investment Banker/Broker (0.5%) Bear Stearns Cos., Inc. (The), 6.40%, 10/2/17 $ 350,000 $ 342,771 Goldman Sachs Group, Inc. (The), 6.13%, 2/15/33 (c) 1,100,000 955,658 Merrill Lynch & Co., Inc., 5.70%, 5/2/17 2,000,000 1,710,988 ------------ 3,009,417 ------------ Finance-Leasing Company (0.4%) International Lease Finance Corp., 5.88%, 5/1/13 2,500,000 2,126,548 ------------ Investment Managment/ Advisor Services (0.2%) Ameriprise Financial, Inc., 5.65%, 11/15/15 1,480,000 1,353,969 ------------ Money Center Banks (0.2%) UBS Preferred Funding Trust I, 8.62%, 10/1/10 (a) (c) (i) 925,000 930,776 ------------ Multi-Line Insurance (0.2%) MetLife, Inc., 5.00%, 6/15/15 1,100,000 1,049,654 ------------ Multimedia (0.4%) Time Warner, Inc., 7.70%, 5/1/32 (c) 492,000 491,591 Walt Disney Co. (The), 4.70%, 12/1/12 1,800,000 1,812,485 ------------ 2,304,076 ------------ Oil Refining & Marketing (0.3%) Premcor Refining Group, Inc. (The), 7.50%, 6/15/15 1,500,000 1,548,910 ------------ Property/Casualty Ins (0.0%) Travelers Property Casualty Corp., 7.75%, 4/15/26 85,000 89,360 ------------ Real Estate Investment Trusts (0.3%) Simon Property Group L.P., 5.63%, 8/15/14 1,790,000 1,723,516 ------------ Retail-Discount (0.2%) Target Corp., 5.38%, 5/1/17 1,150,000 1,118,669 ------------ Special Purpose Entity (0.5%) JP Morgan Chase Capital XXI, Series U, 3.80%, 2/2/37, (Callable 2/2/12 @ 100) (a) 1,000,000 720,436 MassMutual Global Funding II, 3.80%, 4/15/09 (b) 1,390,000 1,389,427 Principal Life Global Funding I, 5.13%, 10/15/13 (b) 1,090,000 1,072,886 ------------ 3,182,749 ------------ Continued 108 Total Return Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds, continued Super-Regional Banks-U.S. (1.1%) BAC Capital Trust XIII, 3.18%, 3/15/12 (a) (i) $ 2,000,000 $ 1,321,590 Bank of America Corp., 5.63%, 10/14/16 4,000,000 3,772,568 Bank of America Corp., 8.00%, 1/30/18 (a) (i) 1,450,000 1,337,625 ------------ 6,431,783 ------------ Telephone-Integrated (0.2%) AT&T, Inc., 6.30%, 1/15/38 1,450,000 1,364,135 ------------ Transport-Rail (0.2%) Burlington Northern Santa Fe Corp., 5.65%, 5/1/17 1,000,000 971,074 ------------ Total Corporate Bonds 52,495,200 ------------ Foreign Bonds (1.9%) Oil Company-Exploration & Production (0.6%) Canadian Natural Resources, Ltd., 6.25%, 3/15/38 1,000,000 944,002 Gazprom International SA, 7.20%, 2/1/20 (b) 2,581,157 2,571,478 ------------ 3,515,480 ------------ Sovereign (1.2%) Australia Government Bond, Series 909, 7.50%, 9/15/09 AUD 2,250,000 2,140,867 Brazil, Federal Republic, 6.00%, 8/15/10 (e) BRL 4,500,000 4,910,898 ------------ 7,051,765 ------------ Special Purpose Entity (0.0%) Preferred Term Securities, Ltd./Preferred Term Securities, Inc., 4.61%, 7/3/32 (a) (b) $ 207,534 181,925 ------------ Telephone-Integrated (0.1%) France Telecom SA, 8.50%, 3/1/31 650,000 769,244 ------------ Total Foreign Bonds 11,518,414 ------------ Mortgage-Backed Securities (34.1%) Agency Collateral Other (0.6%) Restructured Assets Certificates, Series 2006-9, Class P, 12.07%, 12/31/49 (a) (b) (e)(k) 5,250,000 3,622,500 ------------ CMBS Other (8.1%) Bear Stearns Commercial Mortgage Securities, Series 2000-WF2, Class A1, 7.11%, 10/15/32 (a) 249,388 249,150 Bear Stearns Commercial Mortgage Securities, Series 2004-T14, Class A4, 5.20%, 1/12/41 (a) 2,000,000 1,935,408 Continued Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued CMBS Other, continued Citigroup Commercial Mortgage Trust, Series 2005-EMG, Class A3, 4.38%, 9/20/51 (b) (h) $ 5,000,000 $ 4,894,130 Commercial Mortgage Asset Trust, Series 1999-C1, Class B, 7.23%, 1/17/32 (a) 1,620,000 1,711,089 Crown Castle Towers LLC, Series 2005-1A, Class AFX, 4.64%, 6/15/35 (b) 4,000,000 3,946,480 CS First Boston Mortgage Securities Corp., Series 2001-CK3, Class A4, 6.53%, 6/15/34 2,922,180 2,992,369 GE Capital Commercial Mortgage Corp., Series 2000-1, Class A2, 6.50%, 1/15/33 2,458,187 2,511,125 Greenwich Capital Commercial Funding Corp., Series 2002-C1, Class A4, 4.95%, 1/11/35 1,000,000 969,235 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 5,125,000 5,054,114 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 (h) 4,900,000 4,891,977 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-CB6, Class A2, 5.26%, 7/12/37 (a) 4,460,000 4,380,673 LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A4, 5.12%, 11/15/32 (a) 2,924,000 2,831,431 LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A2, 4.55%, 7/15/30 330,000 327,648 Morgan Stanley Capital I, Series 2004-IQ8, Class A5, 5.11%, 6/15/40 (a) 3,200,000 3,045,735 Morgan Stanley Dean Witter Capital I, Series 2003-TOP9, Class A2, 4.74%, 11/13/36 2,590,000 2,484,597 Nomura Asset Securities Corp., Series 1998-D6, Class A2, 6.96%, 3/15/30 (a) 1,000,000 1,050,902 Nomura Asset Securities Corp., Series 1998-D6, Class A4, 7.54%, 3/15/30 (a) 1,600,000 1,725,408 Salomon Brothers Mortgage Securities VII, Inc., Series 2002-KEY2, Class A3, 4.87%, 3/18/36 2,270,000 2,203,112 ------------ 47,204,583 ------------ CMBS Subordinated (4.1%) Crown Castle Towers LLC, Series 2006-1A, Class E, 6.07%, 11/15/36 (b) 6,100,000 5,328,167 CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class C1, 6.38%, 4/15/37 (a) 1,180,000 1,179,091 Continued 109 Total Return Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued CMBS Subordinated, continued Global Signal Trust, Series 2006-1, Class C, 5.71%, 2/15/36 (b) $ 2,550,000 $ 2,381,649 Global Signal Trust, Series 2006-1, Class D, 6.05%, 2/15/36 (b) (e) 3,000,000 2,776,350 GS Mortgage Securities Corp. II, Series 2004-C1, Class B, 4.46%, 10/10/28 (a) 2,740,000 2,682,236 GS Mortgage Securities Corp. II, Series 2004-C1, Class C, 4.52%, 10/10/28 (a) 4,093,000 4,009,638 Salomon Brothers Mortgage Securities VII, Inc., Series 2002-KEY2, Class C, 5.05%, 3/18/36 (a) 1,417,000 1,377,342 SBA CMBS Trust, Series 2006-1A, Class D, 5.85%, 11/15/36 (b) 3,100,000 2,751,374 SBA CMBS Trust, Series 2006-1A, Class E, 6.17%, 11/15/36 (b) 1,350,000 1,176,754 ------------ 23,662,601 ------------ WL Collateral CMO Mezzanine (0.0%) Homebanc Mortgage Trust, Series 2004-1, Class 2M2, 4.19%, 8/25/29 (a) 375,952 174,100 ------------ WL Collateral CMO Other (12.9%) Banc of America Funding Corp., Series 2006-G, Class 3A2, 5.75%, 7/20/36 (a) (h) 9,895,000 8,193,500 Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A3, 4.64%, 1/25/35 (a) 973,004 939,648 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 13A1, 5.45%, 2/25/36 (a) 3,192,087 2,801,572 Chase Mortgage Finance Corp., Series 2006-A1, Class 4A1, 6.03%, 9/25/36 (a) 7,972,774 6,920,598 Chase Mortgage Finance Corp., Series 2006-S2, Class 2A6, 6.00%, 10/25/36 5,105,000 4,875,137 Chaseflex Trust, Series 2006-1, Class A2A, 5.94%, 6/25/36 (a) 1,600,000 1,532,172 Chaseflex Trust, Series 2006-1, Class A4, 6.30%, 6/25/36 (a) 7,344,000 5,285,331 Chaseflex Trust, Series 2006-2, Class A4, 6.34%, 9/25/36 (a) 2,815,000 1,950,255 Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2005-4, Class A2, 5.05%, 9/25/35 (a) 1,265,553 1,243,513 Deutsche Mortgage Securities, Inc., Series 2005-WF1, Class 1A1, 5.09%, 6/26/35 (a) (k) 1,063,727 1,057,764 Continued Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued WL Collateral CMO Other, continued GMAC Mortgage Corp. Loan Trust, Series 2003-GH2, Class A4, 5.00%, 10/25/33 $ 2,380,182 $ 2,150,077 Homebanc Mortgage Trust, Series 2004-2, Class A2, 2.91%, 12/25/34 (a) (h) 1,409,761 1,224,617 Homebanc Mortgage Trust, Series 2006-1, Class 1A1, 6.08%, 4/25/37 (a) (h) 518,735 489,523 Homebanc Mortgage Trust, Series 2006-1, Class 2A1, 5.99%, 4/25/37 (a) 3,349,354 2,545,670 Indymac Index Mortgage Loan Trust, Series 2005-AR9, Class 1A1, 5.05%, 7/25/35 (a) 2,082,027 1,674,041 JP Morgan Mortgage Trust, Series 2005-A1, Class 2A1, 4.85%, 2/25/35 (a) 837,861 768,822 JP Morgan Mortgage Trust, Series 2005-A1, Class 3A4, 5.03%, 2/25/35 (a) 6,217,810 4,691,055 JP Morgan Mortgage Trust, Series 2005-A2, Class 3A2, 4.89%, 4/25/35 (a) 3,000,000 2,669,768 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.35%, 4/25/35 (a) 3,420,481 3,090,081 JP Morgan Mortgage Trust, Series 2005-A2, Class 7CB1, 4.88%, 4/25/35 (a) 2,900,717 2,591,352 JP Morgan Mortgage Trust, Series 2005-A3, Class 7CA1, 5.11%, 6/25/35 (a) 1,882,811 1,818,934 JP Morgan Mortgage Trust, Series 2005-ALT1, Class 4A1, 5.64%, 10/25/35 (a) 3,181,010 2,705,590 JP Morgan Mortgage Trust, Series 2006-A2, Class 3A2, 5.67%, 4/25/36 (a) 8,035,415 6,579,915 Morgan Stanley Mortgage Loan Trust, Series 2004-4, Class 3A, 5.00%, 8/25/19 1,700,958 1,662,154 Nomura Asset Acceptance Corp., Series 2005-AR1, Class 1A2, 5.32%, 2/25/35 (a) 1,679,427 1,237,503 Residential Accredit Loans, Inc., Series 2004-QA1, Class A1, 2.73%, 3/25/34 (a) (h) 1,124,030 1,092,781 Residential Accredit Loans, Inc., Series 2005-QA12, Class CB1, 5.78%, 12/25/35 (a) 2,293,821 1,415,749 Structured Asset Securities Corp., Series 2004-21XS, Class 2A6B, 5.15%, 12/25/34 1,214,000 1,228,893 WaMu Mortgage Pass Through Certificates, Series 2004-AR3, Class A2, 4.24%, 6/25/34 (a) 1,340,668 1,207,796 ------------ 75,643,811 ------------ Continued 110 Total Return Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued WL Collateral CMO Sequential (4.5%) Chase Mortgage Finance Corp., Series 2006-A1, Class 2A3, 6.00%, 9/25/36 (a) $ 2,000,000 $ 1,561,001 Countrywide Alternative Loan Trust, Series 2005-J3, Class 3A1, 6.50%, 9/25/34 418,570 386,103 Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AB3, Class A3, 6.51%, 7/25/36 (a) 2,575,000 1,852,246 Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AB4, Class A3A1, 5.90%, 10/25/36 (a) 5,425,000 4,770,215 JP Morgan Alternative Loan Trust, Series 2005-S1, Class 1A2, 5.50%, 12/25/35 1,793,302 1,707,500 JP Morgan Mortgage Trust, Series 2006-A4, Class 2A2, 5.82%, 6/25/36 (a) 730,976 675,841 JP Morgan Alternative Loan Trust, Series 2006-A5, Class 2A6, 5.80%, 10/25/36 (a) 5,640,000 3,266,335 JP Morgan Mortgage Trust, Series 2006-A7, Class 3A2, 5.94%, 1/25/37 (a) 5,075,000 4,943,830 JP Morgan Alternative Loan Trust, Series 2006-S3, Class A3A, 6.00%, 8/25/36 4,529,000 4,067,417 Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, Class 2A3, 4.74%, 12/25/33 (a) 4,095,000 3,373,762 ------------ 26,604,250 ------------ WL Collateral PAC (0.3%) Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 2,092,234 2,026,470 ------------ WL Collateral Support (3.6%) Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-12, Class 11A2, 5.45%, 2/25/36 (a) 2,466,800 2,440,031 Bear Stearns Alt-A Trust, Series 2005-9, Class 21A2, 5.71%, 11/25/35 (a) 608,841 318,580 Chaseflex Trust, Series 2006-1, Class A6, 6.29%, 6/25/36 (a) 5,265,000 4,801,006 JP Morgan Alternative Loan Trust, Series 2006-A4, Class A7, 6.30%, 9/25/36 (a) 5,000,000 2,495,831 JP Morgan Alternative Loan Trust, Series 2006-S1, Class 1A18, 6.00%, 3/25/36 3,473,731 3,072,259 Nomura Asset Acceptance Corp., Series 2004-AR4, Class 1A2, 4.88%, 12/25/34 (a) 922,529 777,662 Continued Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued WL Collateral Support, continued Nomura Asset Acceptance Corp., Series 2005-AR2, Class 2A2, 5.54%, 5/25/35 (a) $ 1,174,925 $ 970,158 Nomura Asset Acceptance Corp., Series 2005-AR3, Class 3A2, 5.65%, 7/25/35 (a) 1,780,291 1,468,693 Nomura Asset Acceptance Corp., Series 2005-AR5, Class 2A2, 5.64%, 10/25/35 (a) 1,290,814 879,694 Nomura Asset Acceptance Corp., Series 2006-AF1, Class 3A2, 6.60%, 6/25/36 (a) 2,358,745 1,535,039 Residential Funding Mortgage Securities I, Series 2007-S2, Class A10, 6.00%, 2/25/37 430,000 376,649 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR7, Class 2A2, 5.14%, 5/25/35 (a) 2,566,989 2,045,078 ------------ 21,180,680 ------------ Total Mortgage-Backed Securities 200,118,995 ------------ U.S. Government Agencies (34.5%) Fannie Mae (17.2%) 6.05%, 12/1/08 2,730,220 2,734,765 3.88%, 7/12/13 5,900,000 5,859,438 6.50%, 7/1/16 488,926 508,560 6.00%, 5/1/17 139,902 143,378 6.50%, 6/1/17 162,436 168,908 6.00%, 5/1/18 479,811 491,132 5.50%, 12/25/20 2,355,701 2,383,622 6.00%, 2/1/22 3,155,507 3,214,998 5.50%, 2/1/25 1,071,170 1,064,410 5.00%, 5/1/25 1,796,024 1,736,748 7.50%, 6/1/28 147,513 159,158 6.50%, 8/1/28 149,111 154,672 6.50%, 6/1/29 99,881 103,543 6.50%, 4/1/32 248,096 256,573 6.50%, 6/1/32 587,053 607,110 7.00%, 6/1/32 170,427 180,986 6.50%, 7/1/32 974,275 1,007,912 7.00%, 8/1/32 412,362 434,717 6.00%, 1/1/33 318,964 322,542 5.50%, 3/1/33 8,105,661 7,980,192 6.50%, 3/1/33 165,773 171,282 6.00%, 8/25/33 (a) 2,007,580 1,859,251 5.50%, 12/25/33 900,000 907,078 5.00%, 1/1/34 9,133,699 8,737,049 5.50%, 5/25/34 3,150,000 2,799,812 5.14%, 8/1/34 (a) 100,369 100,724 7.00%, 9/1/34 88,677 93,276 5.50%, 12/1/34 4,314,980 4,241,445 5.50%, 6/1/35 558,689 548,557 6.00%, 7/1/35 3,476,618 3,501,497 6.00%, 9/1/35 1,799,591 1,812,469 5.00%, 11/1/35 3,462,431 3,302,329 Continued 111 Total Return Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ U.S. Government Agencies, continued Fannie Mae, continued 5.50%, 11/1/35 $ 950,562 $ 933,323 6.00%, 1/1/36 3,371,853 3,402,580 2.78%, 4/25/36 (a) (h) 4,652,973 4,553,785 6.50%, 8/1/36 800,860 817,211 7.00%, 9/1/36 1,236,687 1,294,232 5.50%, 11/1/36 1,589,076 1,558,023 6.00%, 12/1/36 (h) 12,962,543 13,041,129 6.00%, 12/1/36 1,147,198 1,154,153 5.50%, 1/1/37 3,835,943 3,760,105 6.00%, 1/1/37 4,211,628 4,237,161 5.50%, 4/25/37 3,034,063 2,676,953 5.50%, 8/1/37 3,148,479 3,084,316 5.50%, 12/1/37 1,886,974 1,848,519 2.73%, 8/25/44 (a) 855,837 840,838 ------------ 100,790,461 ------------ Freddie Mac (11.1%) 4.00%, 1/15/17 7,500,000 7,311,226 4.00%, 5/1/19 3,131,783 2,934,456 6.00%, 12/15/21 3,717,156 3,805,369 5.00%, 2/15/25 3,245,000 3,058,007 7.00%, 6/1/26 523,769 548,438 6.50%, 1/1/29 1,193,712 1,238,601 7.00%, 1/1/32 107,301 113,939 6.50%, 7/1/32 195,520 202,383 4.74%, 7/15/32, IO (a) (b) 9,939,496 793,904 6.50%, 9/1/32 97,828 101,201 5.00%, 8/1/33 372,255 355,740 6.00%, 9/1/33 356,528 360,416 5.00%, 5/1/34 184,286 175,880 6.50%, 5/15/34 (a) 2,673,526 2,356,067 4.50%, 6/1/34 818,662 753,834 4.50%, 9/1/34 1,031,608 949,917 5.50%, 3/15/35 5,505,000 5,337,055 5.00%, 7/1/35 473,458 451,270 5.00%, 8/1/35 1,025,310 977,260 5.00%, 11/1/35 3,812,948 3,634,256 5.00%, 4/1/36 434,479 414,117 5.00%, 7/1/36 1,937,269 1,842,847 2.86%, 7/15/36 (a) (h) 1,512,608 1,479,056 3.01%, 9/15/36 (a) 459,821 463,042 5.82%, 10/1/36 (a) 2,285,299 2,305,806 6.10%, 1/1/37 (a) 5,718,166 5,815,703 6.15%, 2/1/37 (a) 5,356,790 5,446,777 5.27%, 3/1/37 (a) 709,135 717,505 5.93%, 3/1/37 (a) 6,515,287 6,598,210 5.72%, 4/1/37 (a) 3,260,647 3,295,693 6.00%, 2/1/38 1,082,810 1,090,220 ------------ 64,928,195 ------------ Government National Mortgage Association (6.2%) 9.50%, 12/15/09 240,547 244,638 5.30%, 7/16/28 (a) 3,000,000 3,002,283 4.82%, 10/16/29 (a) 2,660,000 2,631,037 Continued Principal Amount Value ------------ ------------ U.S. Government Agencies, continued Government National Mortgage Association, continued 5.32%, 8/16/30 (a) $ 2,560,000 $ 2,569,959 5.03%, 11/16/33 (a) 5,640,000 5,446,362 4.42%, 5/16/34 10,250,000 10,111,009 0.92%, 6/17/45, IO (a) (b) (e) 12,495,103 536,102 0.51%, 3/16/46, IO (a) (b) (e) 13,555,253 460,242 0.55%, 4/16/46, IO (a) (b) (e) 60,106,179 1,995,766 0.79%, 5/16/46, IO (a) (b) (e) 43,570,194 2,147,183 0.99%, 2/16/48, IO (a) (b) (e) 14,756,913 784,861 1.05%, 2/16/48, IO (a) (e) 57,073,469 2,819,715 1.05%, 6/16/49, IO (a) (b) (e) 66,057,675 3,798,713 ------------ 36,547,870 ------------ Total U.S. Government Agencies 202,266,526 ------------ U.S. Treasury Obligations (4.8%) U.S. Treasury Notes (3.7%) 3.38%, 6/30/13 (c) 13,010,000 13,073,021 4.25%, 11/15/17 (c) 500,000 511,211 3.88%, 5/15/18 (c) 3,835,000 3,802,042 4.50%, 2/15/36 (c) 615,000 603,132 5.00%, 5/15/37 (c) 2,000,000 2,124,844 4.38%, 2/15/38 (c) 1,500,000 1,445,508 ------------ 21,559,758 ------------ U.S. Treasury Strips (1.1%) 6.12%, 2/15/18 ** (c) 5,000,000 3,319,710 8.21%, 11/15/27 ** (h) 7,400,000 2,919,707 ------------ 6,239,417 ------------ Total U.S. Treasury Obligations 27,799,175 ------------ Shares ------------ Investment Companies (6.5%) State Street Navigator Securities Lending Portfolio (l) 37,951,578 37,951,578 ------------ Total Investment Companies 37,951,578 ------------ Preferred Stocks (1.8%) Commercial Banks Non-U.S. (0.4%) Barclays Bank PLC ADR, 8.13% (c) 106,000 2,533,400 ------------ Finance-Investment Banker/Broker (0.2%) Lehman Brothers Holdings, Inc., Series J, 7.95% (c) 63,400 1,000,452 ------------ Sovereign Agency (0.9%) Fannie Mae, 8.25% (c) 160,000 2,686,400 Freddie Mac, 8.38% (a) (c) 161,000 2,728,950 ------------ 5,415,350 ------------ Continued 112 Total Return Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Preferred Stocks, continued Super-Regional Banks-U.S. (0.3%) Wells Fargo Capital XII, 7.88% 80,000 $ 2,028,800 ------------ Total Preferred Stocks 10,978,002 ------------ Principal Amount ------------ Demand Notes (0.2%) Electric-Integrated (0.2%) Alabama Power Capital Trust V, 5.50%, 10/1/08, (Callable 10/1/09 @ 100)(a) (j) $ 874,000 883,284 ------------ Total Demand Notes 883,284 ------------ Shares ------------ Investments in Affiliates (5.1%) Fifth Third Institutional Money Market Fund (d) 30,021,652 30,021,652 ------------ Total Investments in Affiliates 30,021,652 ------------ Total Investments (Cost $679,176,690) - 107.1% 626,483,714 Liabilities in excess of other assets - (7.1)% (41,421,132) ------------ NET ASSETS - 100.0% $585,062,582 ============ Continued Notes to Schedule of Investments ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 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) All or part of this security was on loan. (d) Investment is in Institutional Shares of underlying fund. (e) The Fund's securities were fair valued at July 31, 2008 using procedures approved by the Board of Trustees. (f) Defaulted security. (g) When-issued security. (h) All or part of this security has been designated as collateral for futures contracts, when issued and swaps/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. (l) Represents investments of cash collateral received in connection with securities lending. The following abbreviations are used in the Schedule of Investments: ABS - Asset-Backed Security ADR - American Depository Receipt AUD - Australian Dollar BRL - Brazilian Real CDO - Collateralized Debt Obligation 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. 113 Short Term Bond Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Asset-Backed Securities (17.2%) Automobile ABS Other (0.2%) Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 $ 420,989 $ 419,057 ------------ Automobiles Sequential (10.1%) Banc of America Securities Auto Trust, Series 2005-WF1, Class A4, 4.08%, 4/18/10 2,118,584 2,119,858 Bay View Auto Trust, Series 2005-LJ2, Class A4, 4.55%, 2/25/14 1,887,040 1,899,929 Capital One Auto Finance Trust, Series 2006-C, Class A3A, 5.07%, 7/15/11 1,182,071 1,162,281 Harley-Davidson Motorcycle Trust, Series 2006-2, Class A2, 5.35%, 3/15/13 (e) 3,305,000 3,360,113 Harley-Davidson Motorcycle Trust, Series 2007-3, Class A2A, 5.34%, 9/15/10 1,164,786 1,170,938 Hertz Vehicle Financing LLC, Series 2005-2A, Class A2, 4.93%, 2/25/10 (b) 3,375,000 3,366,643 Hyundai Auto Receivables Trust, Series 2005-A, Class A4, 4.18%, 2/15/12 3,000,000 3,017,851 Nissan Auto Lease Trust, Series 2006-A, Class A4, 5.10%, 7/16/12 (e) 4,000,000 4,071,152 USAA Auto Owner Trust, Series 2006-2, Class A4, 5.37%, 2/15/12 1,500,000 1,531,009 Wachovia Auto Owner Trust, Series 2005-A, Class A4, 4.23%, 11/21/11 (e) 3,456,505 3,472,388 ------------ 25,172,162 ------------ Credit Card Bullet (4.7%) Bank One Issuance Trust, Series 2004-A1, Class A1, 3.45%, 10/17/11 810,000 810,795 Chase Issuance Trust, Series 2005-A10, Class A10, 4.65%, 12/17/12 3,000,000 3,019,487 GE Capital Credit Card Master Note Trust, Series 2005-3, Class A, 4.13%, 6/15/13 2,000,000 1,977,765 MBNA Master Credit Card Trust, Series 1999-B, Class A, 5.90%, 8/15/11 3,000,000 3,047,989 Nordstrom Private Label Credit Card Master Note Trust, Series 2007-1A, Class A, 4.92%, 5/15/13 (b) 3,000,000 2,996,848 ------------ 11,852,884 ------------ Home Equity Other (0.9%) GMAC Mortgage Corp. Loan Trust, Series 2004-HE2, Class A3, 4.24%, 10/25/33 (a) (d) (e) 1,696,534 1,372,560 GMAC Mortgage Corp. Loan Trust, Series 2005-HE2, Class A3, 4.62%, 11/25/35 (a) 937,694 859,023 ------------ 2,231,583 ------------ Continued Principal Amount Value ------------ ------------ Asset-Backed Securities, continued Home Equity Sequential (0.9%) GMAC Mortgage Corp. Loan Trust, Series 2006-HE2, Class A2, 6.18%, 5/25/36 (e) $ 3,000,000 $ 2,173,834 ------------ Other ABS (0.4%) SVO VOI Mortgage Corp., Series 2005-AA, Class A, 5.25%, 2/20/21 (b) 987,437 945,353 ------------ Total Asset-Backed Securities 42,794,873 ------------ Corporate Bonds (18.7%) Beverages-Non Alcoholic (0.9%) Coca Cola Enterprises, Inc., 4.38%, 9/15/09 2,250,000 2,272,682 ------------ Cable TV (0.5%) Comcast Cable Communications LLC, 6.88%, 6/15/09 1,250,000 1,281,110 ------------ Cellular Telecom (0.5%) AT&T Wireless, 7.88%, 3/1/11 1,250,000 1,331,847 ------------ Diversified Financial Services (2.5%) General Electric Capital Corp., 5.25%, 10/27/09 6,000,000 6,122,766 ------------ Electric-Integrated (2.0%) Duke Energy Carolinas LLC, Series D, 7.38%, 3/1/10 1,250,000 1,308,940 Florida Power Corp., 4.50%, 6/1/10 2,500,000 2,526,455 Pepco Holdings, Inc., 4.00%, 5/15/10 1,000,000 982,463 ------------ 4,817,858 ------------ Finance-Consumer Loans (1.2%) HSBC Finance Corp., 4.75%, 5/15/09 3,000,000 3,022,887 ------------ Finance-Investment Banker/Broker (3.1%) Bear Stearns Cos., Inc. (The), 7.63%, 12/7/09 2,500,000 2,594,148 Citigroup, Inc., 5.13%, 2/14/11 2,000,000 1,986,476 Goldman Sachs Group, Inc. (The), 6.65%, 5/15/09 3,000,000 3,068,106 ------------ 7,648,730 ------------ Finance-Mortgage Loan/Banker (0.1%) Countrywide Home Loans, Inc., 5.63%, 7/15/09 250,000 245,197 ------------ Finance-Other Services (1.0%) National Rural Utilities, 4.38%, 10/1/10 2,500,000 2,511,878 ------------ Food-Retail (0.5%) Kroger Co. (The), 7.25%, 6/1/09 1,250,000 1,280,284 ------------ Continued 114 Short Term Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Corporate Bonds, continued Life/Health Insurance (0.6%) Protective Life Secured Trusts, 3.70%, 11/24/08 $ 1,590,000 $ 1,586,430 ------------ Networking Products (1.0%) Cisco Systems, Inc., 5.25%, 2/22/11 2,500,000 2,573,385 ------------ Retail-Discount (0.9%) Wal-Mart Stores, Inc., 4.13%, 2/15/11 2,250,000 2,264,886 ------------ Super-Regional Banks-U.S. (3.9%) Bank of America Corp., 4.38%, 12/1/10 1,000,000 998,225 US Bancorp, 3.17%, 5/6/10 (a) 2,750,000 2,752,329 Wachovia Corp., 4.38%, 6/1/10 3,000,000 2,908,761 Wells Fargo & Co., 4.20%, 1/15/10 3,000,000 3,001,464 ------------ 9,660,779 ------------ Total Corporate Bonds 46,620,719 ------------ Foreign Bonds (2.6%) Finance-Other Services (0.1%) Pemex Finance, Ltd., 9.69%, 8/15/09 202,500 206,224 ------------ Oil Company-Integrated (1.2%) BP Capital Markets PLC, 4.88%, 3/15/10 3,000,000 3,082,236 ------------ Sovereign (1.0%) Australia Government Bond, Series 909, 7.50%, 9/15/09 AUD 925,000 880,134 Brazil, Federal Republic, 6.00%, 8/15/10 (d) BRL 1,500,000 1,636,966 ------------ 2,517,100 ------------ Telephone-Integrated (0.3%) Telecom Italia Capital SA, 4.00%, 11/15/08 $ 650,000 649,955 ------------ Total Foreign Bonds 6,455,515 ------------ Mortgage-Backed Securities (28.3%) CMBS Other (5.5%) Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3, 4.13%, 7/10/42 (e) 2,500,000 2,486,294 Bear Stearns Commercial Mortgage Securities, Series 2000-WF2, Class A1, 7.11%, 10/15/32 (a) 155,294 155,146 CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A2, 6.10%, 8/15/36 443,740 444,162 CS First Boston Mortgage Securities Corp., Series 2004-C3, Class A3, 4.30%, 7/15/36 (e) 2,500,000 2,488,487 GE Capital Commercial Mortgage Corp., Series 2005-C1, Class A2, 4.35%, 6/10/48 2,750,000 2,727,918 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 (e) $ 3,000,000 $ 2,980,637 GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3, 4.60%, 8/10/38 2,500,000 2,495,907 ------------ 13,778,551 ------------ CMBS Subordinated (1.3%) GMAC Commercial Mortgage Securities, Inc., Series 1999-C2, Class B, 7.14%, 9/15/33 (a) (e) 3,250,000 3,303,102 ------------ WL Collateral CMO Other (15.4%) Banc of America Mortgage Securities, Inc., Series 2004-F, Class 2A6, 4.14%, 7/25/34 (a) 2,500,000 2,427,707 Banc of America Mortgage Securities, Inc., Series 2004-F, Class 2A7, 4.14%, 7/25/34 (a) 2,653,443 2,590,549 Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-1, Class 13A3, 4.77%, 4/25/34 (a) 2,492,792 2,338,328 Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-4, Class 2A2, 4.57%, 8/25/35 (a) 3,000,000 2,870,882 Bear Stearns Asset Backed Securities Trust, Series 2003-AC7, Class A2, 5.25%, 1/25/34 1,099,428 983,594 Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB5, Class 4A1, 5.01%, 4/20/35 (a) 1,777,948 1,556,091 Harborview Mortgage Loan Trust, Series 2004-5, Class 2A6, 3.94%, 6/19/34 (a) (e) 5,730,000 4,779,952 Homebanc Mortgage Trust, Series 2004-2, Class A2, 2.91%, 12/25/34 (a) 1,136,267 987,042 Homebanc Mortgage Trust, Series 2006-1, Class 1A1, 6.08%, 4/25/37 (a) 1,815,574 1,713,330 Indymac Index Mortgage Loan Trust, Series 2006-AR29, Class A2, 2.54%, 11/25/36 (a) 802,197 764,621 JP Morgan Alternative Loan Trust, Series 2006-S2, Class A2, 5.81%, 5/25/36 2,075,000 2,066,611 JP Morgan Mortgage Trust, Series 2005-A1, Class 3A3, 4.90%, 2/25/35 (a) 2,165,321 1,995,458 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.35%, 4/25/35 (a) 2,077,429 1,876,761 JP Morgan Mortgage Trust, Series 2005-A3, Class 7CA1, 5.11%, 6/25/35 (a) (e) 3,017,205 2,914,841 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.76%, 12/25/32 (a) 98,293 97,253 Continued 115 Short Term Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Mortgage-Backed Securities, continued WL Collateral CMO Other, continued Provident Funding Mortgage Loan Trust, Series 2005-2, Class 2A1A, 4.70%, 10/25/35 (a) $ 2,157,741 $ 2,001,486 Residential Funding Mortgage Securities I, Series 2007-SA1, Class 1A1, 5.66%, 2/25/37 (a) 3,210,424 3,113,750 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR10, Class 2A14, 4.11%, 6/25/35 (a) (e) 3,500,000 3,396,264 ------------ 38,474,520 ------------ WL Collateral CMO Sequential (5.6%) Chase Mortgage Finance Corp., Series 2005-A1, Class 2A2, 5.24%, 12/25/35 (a) 2,231,885 2,148,265 JP Morgan Alternative Loan Trust, Series 2006-S3, Class A2A, 5.87%, 8/25/36 3,000,000 2,944,284 JP Morgan Mortgage Trust, Series 2006-A3, Class 2A1, 5.63%, 5/25/36 (a) 2,480,710 2,343,326 JP Morgan Mortgage Trust, Series 2006-A4, Class 2A2, 5.82%, 6/25/36 (a) 2,302,574 2,128,901 JP Morgan Mortgage Trust, Series 2007-A2, Class 4A1M, 5.80%, 4/25/37 (a) 2,435,626 2,238,368 RAAC Series, Series 2005-SP1, Class 2A2, 5.25%, 9/25/34 2,151,267 2,032,172 ------------ 13,835,316 ------------ WL Collateral PAC (0.5%) Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 1,192,087 1,154,617 ------------ Total Mortgage-Backed Securities 70,546,106 ------------ Municipal Bonds (0.2%) Ohio (0.2%) State Economic Enterprise, Series 3, 4.05%, 3/1/11 (b) 490,000 485,507 ------------ Total Municipal Bonds 485,507 ------------ U.S. Government Agencies (26.3%) Fannie Mae (3.4%) 5.00%, 2/25/25 (e) 3,153,378 3,181,095 4.70%, 4/1/33 (a) 1,678,396 1,693,656 5.11%, 9/1/34 (a) 2,127,986 2,157,943 4.94%, 4/1/35 (a) 1,482,338 1,493,494 ------------ 8,526,188 ------------ Continued Principal Amount Value ------------ ------------ U.S. Government Agencies, continued Fannie Mae Prepayment Link Note, Series 2005-4, Class 1 (1.0%) 4.65%, 12/25/12 IO $ 2,536,392 $ 2,472,063 ------------ Federal Farm Credit Bank (2.4%) 2.63%, 4/21/11 6,000,000 5,861,958 ------------ Federal Home Loan Bank (3.5%) 5.00%, 9/18/09 1,000,000 1,022,662 5.00%, 12/11/09 5,000,000 5,131,845 4.75%, 10/25/10 IO 2,556,445 2,578,022 ------------ 8,732,529 ------------ Freddie Mac (8.4%) 4.88%, 2/9/10 7,000,000 7,190,785 5.00%, 9/15/25 (e) 2,911,395 2,944,009 4.50%, 7/15/28 (e) 2,916,312 2,922,170 3.98%, 3/1/34 (a) 1,677,863 1,682,212 4.67%, 7/1/35 (a) (e) 3,220,307 3,246,568 5.71%, 4/1/37 (a) 2,903,116 2,934,319 ------------ 20,920,063 ------------ Government National Mortgage Association (7.6%) 2.87%, 2/16/20 (e) 3,378,488 3,378,309 3.27%, 1/16/23 1,634,841 1,621,627 6.01%, 2/16/24 (a) 831,607 844,679 3.72%, 12/16/26 3,082,649 3,058,801 4.00%, 5/16/27 1,820,900 1,803,573 4.29%, 1/16/30 2,799,747 2,795,425 4.09%, 8/16/30 2,109,143 2,093,784 3.95%, 11/16/30 (e) 3,292,435 3,259,259 ------------ 18,855,457 ------------ Total U.S. Government Agencies 65,368,258 ------------ U.S. Treasury Obligations (4.3%) U.S. Treasury Notes (4.3%) 3.13%, 11/30/09 5,500,000 5,560,588 4.50%, 5/15/10 1,000,000 1,036,406 4.88%, 7/31/11 4,000,000 4,233,124 ------------ 10,830,118 ------------ Total U.S. Treasury Obligations 10,830,118 ------------ Continued 116 Short Term Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Shares Value ------------ ------------ Investments in Affiliates (1.7%) Fifth Third Institutional Money Market Fund (c) 4,149,326 $ 4,149,326 ------------ Total Investments in Affiliates 4,149,326 ------------ Total Investments (Cost $250,753,899) - 99.3% 247,250,422 Other assets in excess of liabilities - 0.7% 1,823,666 ------------ NET ASSETS - 100.0% $249,074,088 ============ Notes to Schedule of Investments (a) Variable rate security. Rate presented represents rate in effect at July 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 July 31, 2008 using procedures approved by the Board of Trustees. (e) All or part of this security has been designated as collateral for futures contracts. The following abbreviations are used in the Schedule of Investments: ABS - Asset-Backed Security AUD - Australian Dollar BRL - Brazilian Real 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 July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds (92.9%) Arizona (5.9%) City of Tempe Transportation Excise Tax, 4.75%, 7/1/38, (Callable 7/1/18 @ 100) $ 1,000,000 $ 961,370 Mesa Street and Highway, FSA, 5.25%, 7/1/23 600,000 648,462 Tucson Water, MBIA, 4.25%, 7/1/21, (Callable 7/1/16 @ 100) 1,000,000 985,310 ------------ 2,595,142 ------------ California (13.2%) California Polytechnical Pomona Foundation, Inc., MBIA, 5.50%, 2/1/20, (Prerefunded 2/1/11 @ 101) 265,000 286,759 California State Department of Water Resources, Central Valley Project, Series AE, 5.00%, 12/1/28, (Callable 6/1/18 @ 100) 1,000,000 1,024,900 La Canada Unified School District, Series A, GO, MBIA, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 1,000,000 1,049,840 Placentia-Yorba Linda Unified School District, Series B, GO, FGIC, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 1,000,000 1,041,760 Sacramento County Sanitation District, Series A, 6.00%, 12/1/15, (Callable 12/1/10 @ 101) 250,000 269,667 State of California, Variable Purpose, GO, 5.25%, 3/1/38, (Callable 3/1/18 @ 100) 1,000,000 997,570 State Public Works Board, Department of Corrections and Rehabilitation, Series F, FGIC, 5.25%, 11/1/19 1,020,000 1,094,287 ------------ 5,764,783 ------------ Colorado (2.5%) Douglas County School District No Re-1, GO, FGIC, 5.75%, 12/15/21, (Callable 12/15/14 @ 100) 1,000,000 1,078,740 ------------ Connecticut (1.1%) State Health & Educational Facility Authority, Loomis Chafee School, Series G, 5.00%, 7/1/38, (Callable 7/1/18 @ 100) 500,000 479,040 ------------ Florida (4.6%) Orange County Health Facilities Authority, Series B, FSA, 5.00%, 12/1/32, (Callable 11/15/18 @ 100) 1,000,000 973,850 Volusia County School Board, Series A, CP, FSA, 5.00%, 8/1/19, (Callable 8/1/15 @ 100) 1,010,000 1,046,118 ------------ 2,019,968 ------------ Continued 117 Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Illinois (3.1%) Chicago Metropolitan Water Reclamation District-Greater Chicago Capital Improvements, GO, ETM, 7.25%, 12/1/12 $ 500,000 $ 587,065 City of Chicago Single Family Mortgage, Series A, AMT, GNMA-FNMA, 4.70%, 10/1/17, (Callable 4/1/09 @ 102) 125,000 124,626 Finance Authority, Metropolis Project, 5.00%, 12/1/14, (Callable 12/1/13 @ 100) 300,000 311,904 State of Illinois, GO, FGIC, 5.88%, 10/1/17, (Callable 10/1/09 @ 100) 300,000 308,985 ------------ 1,332,580 ------------ Iowa (5.1%) Finance Authority, Drake University Project, MBIA, 6.50%, 12/1/11 (c) 2,055,000 2,220,530 ------------ Kansas (4.2%) Geary County Unified School District No. 475, GO, MBIA, 5.25%, 9/1/17, (Callable 9/1/15 @ 100) 1,675,000 1,826,504 ------------ Louisiana (2.3%) State Citizens Property Insurance Corp., Series B, AMBAC, 5.00%, 6/1/18, (Callable 6/1/16 @ 100) 1,000,000 1,001,850 ------------ Michigan (8.8%) Detroit Water Supply System, Series A, FSA, 5.00%, 7/1/16 1,000,000 1,065,080 Higher Education Student Loan Authority, Series XII-W, AMT, AMBAC, 4.75%, 3/1/09 (c) 1,000,000 1,014,460 State Hospital Finance Authority, Henry Ford Health System, Series A, 5.00%, 11/15/20, (Callable 11/15/16 @ 100) 500,000 497,695 State of Michigan, Grant Antic Buildings, FSA, 5.25%, 9/15/20, (Callable 9/15/17 @ 100) 250,000 267,735 Strategic Fund, Hope Network Project, Series B, 5.13%, 9/1/13, (LOC: First of America Bank), (Callable 9/1/08 @ 102) 1,000,000 1,020,880 ------------ 3,865,850 ------------ Minnesota (2.2%) State Municipal Power Agency, 5.00%, 10/1/30, (Callable 10/1/15 @ 100) 1,000,000 978,950 ------------ Nebraska (3.7%) City of Omaha, Series A, GO, ETM, 6.50%, 12/1/13 1,365,000 1,593,201 ------------ Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued New Mexico (4.7%) County of Bernalillo, 5.25%, 4/1/27 $ 475,000 $ 504,502 Mortgage Finance Authority, Single Family Mortgage, Series A, AMT, GNMA-FNMA-FHLMC, 5.50%, 7/1/36, (Callable 1/1/15 @ 102) (a) 500,000 504,310 University of New Mexico, System Implements, Series A, FSA, 5.00%, 6/1/21, (Callable 6/1/17 @ 100) 1,000,000 1,047,140 ------------ 2,055,952 ------------ New York (3.0%) City of New York, Series E, GO, 5.00%, 8/1/16 250,000 269,252 State Housing Finance Agency, Economic Development and Housing, Series A, 5.00%, 9/15/23, (Callable 9/15/15 @ 100) 1,000,000 1,036,870 ------------ 1,306,122 ------------ Ohio (8.7%) City of Columbus Sewer Revenue, Series A, 5.00%, 6/1/23, (Callable 12/1/17 @ 100) 1,000,000 1,046,970 County of Cuyahoga Capital Improvements, GO, 5.25%, 12/1/18, (Callable 12/1/14 @ 100) 1,500,000 1,616,760 State of Ohio, Common Schools, Series D, GO, 5.50%, 9/15/19 1,000,000 1,126,750 ------------ 3,790,480 ------------ Oklahoma (2.4%) Oklahoma County, Series A, GO, W/I, 4.00%, 8/1/19, (Callable 8/1/18 @ 100) 500,000 492,565 Tulsa International Airport, Improvement Trust, Series B, AMT, FGIC, 5.50%, 6/1/10 530,000 539,779 ------------ 1,032,344 ------------ Oregon (2.4%) Sunrise Water Authority, FSA, 5.25%, 3/1/24, (Callable 3/1/14 @ 100) 1,000,000 1,048,610 ------------ Pennsylvania (6.0%) Central Dauphin School District, GO, MBIA, 6.75%, 2/1/24, (Prerefunded 2/1/16 @ 100) 1,000,000 1,205,170 Higher Educational Facilities Authority, Widener University, 3.85%, 7/15/13 430,000 428,267 Lancaster Higher Education Authority, Franklin and Marshall College, 5.00%, 4/15/25, (Callable 4/15/16 @ 100) 1,000,000 1,006,270 ------------ 2,639,707 ------------ Continued 118 Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Puerto Rico (4.8%) Commonwealth of Puerto Rico, Series A, GO, 5.00%, 7/1/30, (Mandatory Put 7/1/12 @ 100) (a) $ 1,000,000 $ 1,010,550 Public Buildings Authority, Series I, 5.50%, 7/1/23, (Prerefunded 7/1/14 @ 100) 1,000,000 1,094,670 ------------ 2,105,220 ------------ Texas (1.9%) State Public Finance Authority, Series A, ACA, 5.00%, 2/15/28, (Callable 2/15/14 @ 100) 1,000,000 841,230 ------------ Washington (2.3%) Metropolitan Park District of Tacoma, GO, FGIC, 5.00%, 12/1/22, (Callable 12/1/15 @ 100) 1,000,000 1,023,320 ------------ Total Municipal Bonds 40,600,123 ------------ Municipal Demand Notes (1.8%) Illinois (1.4%) Lake Zurich Rose Road LLC Project, AMT, 3.45%, 8/1/08, (LOC: JP Morgan, Inc.) (a) (d) 610,000 610,000 ------------ Kentucky (0.4%) Shelby County Lease Program, Series A, 2.05%, 8/1/08, (LOC: U.S. Bancorp) (a) (d) 185,000 185,000 ------------ Total Municipal Demand Notes 795,000 ------------ Shares ------------ Money Markets (5.1%) AIM TFIT Tax-Free Cash Reserve Portfolio (b) 112 112 Dreyfus Tax Exempt Cash Management (b) 888,755 888,755 Goldman Sachs Financial Square Funds - Tax-Free Money Market Fund (b) 4,892 4,892 Merrill Lynch Funds For Institutions Series - Institutional Tax-Exempt Fund (b) 1,338,025 1,338,025 ------------ Total Money Markets 2,231,784 ------------ Total Investments (Cost $43,376,559) - 99.8% 43,626,907 Other assets in excess of liabilities - 0.2% 99,975 ------------ NET ASSETS - 100.0% $ 43,726,882 ============ Continued Notes to Schedule of Investments (a) Variable rate security. Rate presented represents rate in effect at July 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 transactions. (d) Maturity date is next rate reset date. 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 W/I - When Issued Investment concentration as a percentage of net assets, by industry: Airport 1.2% Development 1.4% Education 1.9% Facilities 2.5% General 3.9% General Obligation 20.1% Healthcare 1.1% Higher Education 11.4% Housing 2.4% Investment Companies 5.1% Medical 6.4% Municipal 1.1% Power 2.3% School District 16.6% Single Family Housing 1.5% Student Loan 2.3% Transportation 3.7% Utilities 5.5% Water 9.4% See notes to schedules of investments and notes to financial statements. 119 Intermediate Municipal Bond Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds (96.4%) Alabama (5.6%) Birmingham Baptist Medical Centers Special Care Facilities Financing Authority, Series A, 5.00%, 11/15/14 $ 4,000,000 $ 4,001,840 County of Mobile, GO, FSA, 5.25%, 8/1/17, (Callable 8/1/14 @ 100) (c) 3,080,000 3,325,753 ------------ 7,327,593 ------------ Alaska (1.5%) State of Alaska, Sport Fishing, CIFG, 4.25%, 4/1/15 1,000,000 1,004,560 State of Alaska, Sport Fishing, CIFG, 4.38%, 4/1/16 1,000,000 1,003,500 ------------ 2,008,060 ------------ Arizona (6.7%) City of Tempe Performing Arts Center, AMBAC, 5.25%, 7/1/17, (Callable 7/1/14 @ 100) (c) 2,000,000 2,156,440 Health Facilities Authority, Phoenix Children's Hospital, Series B, 3.09%, 2/1/42, (Callable 2/2/15 @ 100) (a) 1,000,000 945,580 Mesa Street and Highway, FGIC, 6.25%, 7/1/12 1,000,000 1,112,270 Mesa Street and Highway, FGIC, 6.25%, 7/1/13, (Prerefunded 7/1/11 @ 100) 1,000,000 1,099,710 Pima County Industrial Development Authority, Series A, 5.13%, 7/1/15 1,140,000 1,130,447 Tucson Street and Highway, Series 1994-E, FGIC, 6.75%, 7/1/13 2,000,000 2,302,240 ------------ 8,746,687 ------------ Arkansas (0.8%) University of Arkansas, UAMS Campus, FGIC, 5.00%, 3/1/16 1,000,000 1,074,210 ------------ California (3.5%) California State Department of Water Resources, Central Valley Project, Series AE, 5.00%, 12/1/22, (Callable 6/1/18 @ 100) 500,000 526,130 Chaffey Community College District, Series C, GO, MBIA, 5.42%, 6/1/16 ** 750,000 534,000 City of San Jose, Series A, AMBAC, AMT, 5.00%, 3/1/14 1,000,000 1,037,340 City of San Jose, Series A, AMBAC, AMT, 5.00%, 3/1/15 500,000 516,945 East Bay Regional Park District, GO, 5.25%, 9/1/20 750,000 826,192 La Canada Unified School District, Series A, GO, MBIA, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 375,000 393,690 Placentia-Yorba Linda Unified School District, Series B, GO, FGIC, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 675,000 703,188 ------------ 4,537,485 ------------ Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued Colorado (2.1%) El Paso County School District No. 38, GO, 6.38%, 12/1/18, (Prerefunded 12/1/10 @ 100) $ 1,005,000 $ 1,097,048 Summit County School District No Re001, GO, FSA, 5.75%, 12/1/12, (Callable 12/1/11 @ 100) 1,465,000 1,593,832 ------------ 2,690,880 ------------ Florida (0.3%) City of Pembroke Pines, GO, MBIA, 4.00%, 9/1/15 185,000 187,501 City of Pembroke Pines, GO, MBIA, 4.13%, 9/1/16 250,000 253,165 ------------ 440,666 ------------ Hawaii (0.6%) State of Hawaii Highways, FSA, 5.50%, 7/1/10 765,000 809,485 ------------ Illinois (7.9%) Chicago Metropolitan Water Reclamation District-Greater Chicago Capital Improvements, GO, ETM, 5.50%, 12/1/10 3,000,000 3,215,760 Chicago O'Hare International Airport, Series A, FSA, 4.00%, 1/1/15 1,000,000 1,008,980 City of Greenville, Greenville College Project, 3.45%, 11/1/36, (LOC: National City Corp.), (Mandatory Put 11/1/08 @ 100) (a) 1,000,000 1,000,000 Educational Facilities Authority, The Art Institute of Chicago, Series A, 4.13%, 3/1/30, (Mandatory Put 3/1/13 @ 100) (a) 1,000,000 1,009,730 Finance Authority, Children's Memorial Hospital, Series B, 5.50%, 8/15/21, (Callable 8/15/18 @ 100) 2,000,000 2,043,260 Finance Authority, Children's Memorial Hospital, Series B, 5.50%, 8/15/23, (Callable 8/15/18 @ 100) 1,000,000 1,012,280 Finance Authority, Metropolis Project, 4.75%, 12/1/10 200,000 207,468 Finance Authority, Metropolis Project, 5.00%, 12/1/11 250,000 261,332 Finance Authority, Metropolis Project, 5.00%, 12/1/12 275,000 288,472 Finance Authority, Metropolis Project, 5.00%, 12/1/13 275,000 288,319 ------------ 10,335,601 ------------ Indiana (8.8%) Ball State University, Student Fee, Series N, FSA, 4.00%, 7/1/15 500,000 512,120 Fort Wayne International Airport Building Corp., Series B, AMT, XLCA, 5.00%, 7/1/12 1,615,000 1,659,267 Continued 120 Intermediate Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Indiana, continued Fort Wayne International Airport Building Corp., Series B, AMT, XLCA, 5.00%, 7/1/13 $ 1,695,000 $ 1,737,867 Health & Educational Facilities Financing Authority, Clarian Health Obligation Group, Series B, 5.00%, 2/15/16 500,000 512,915 Health & Educational Facilities Financing Authority, Clarian Health Obligation Group, Series B, 5.00%, 2/15/19, (Callable 2/15/16 @ 100) 1,000,000 999,980 Local Public Improvement Bond Bank, Airport Authority, Series F, AMT, AMBAC, 5.00%, 1/1/19, (Callable 7/1/16 @ 100) 2,550,000 2,442,390 Municipal Power Supply Agency, Series B, MBIA, 6.00%, 1/1/13 3,000,000 3,295,920 State Finance Authority, Revolving Fund Project, Series A, 5.00%, 2/1/15 250,000 271,902 ------------ 11,432,361 ------------ Iowa (0.1%) Iowa State University, Science and Technology, 3.75%, 7/1/10 140,000 143,577 ------------ Kentucky (1.4%) Area Development Districts, City of Versailles, Series C, CP, ETM, 3.00%, 12/1/09 255,000 256,576 Area Development Districts, Lease Acquisition, 3.00%, 6/1/09, (LOC: Wachovia Corp.) 240,000 241,747 Housing Corp., Series A, AMT, 3.45%, 1/1/10 275,000 277,173 Kenton County Airport Board, Series C, AMT, MBIA, 5.00%, 3/1/10 730,000 737,110 Munfordville Industrial Development, Louisville Bedding Co. Project, AMT, 3.50%, 6/1/09, (LOC: JP Morgan, Inc.) 310,000 310,564 ------------ 1,823,170 ------------ Louisiana (1.1%) Public Facilities Authority, Pennington Medical Foundation Project, 5.00%, 7/1/16 1,000,000 1,022,350 State Citizens Property Insurance Corp., Series B, AMBAC, 5.00%, 6/1/18, (Callable 6/1/16 @ 100) 400,000 400,740 ------------ 1,423,090 ------------ Michigan (14.5%) Detroit Sewer Disposal, FGIC, 5.50%, 7/1/36, (Callable 7/1/18 @ 100) 1,000,000 1,037,840 Detroit Water Supply System, Series A, FSA, 5.00%, 7/1/16 500,000 532,540 Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued Michigan, continued Higher Education Facilities Authority, Hope College Project, 4.70%, 10/1/09 $ 200,000 $ 200,568 Higher Education Facilities Authority, Hope College Project, 4.80%, 10/1/10, (Callable 10/1/09 @ 100) 590,000 591,280 Higher Education Student Loan Authority, Series XVII-I, AMT, AMBAC, 3.95%, 3/1/11 1,000,000 987,780 Kent Hospital Finance Authority, Spectrum Health, Series A, 5.50%, 1/15/13, (Prerefunded 7/15/11 @ 101) 125,000 135,403 Montague Public School District, GO, Q-SBLF, 5.50%, 5/1/12, (Callable 11/1/11 @ 100) 430,000 463,200 Montague Public School District, GO, Q-SBLF, 5.50%, 5/1/12, (Prerefunded 11/1/11 @ 100) 575,000 623,467 State Building Authority, Facilities Program, Series I, AMBAC, 5.00%, 10/15/29, (Mandatory Put 10/15/11 @ 100) (a) 1,500,000 1,588,785 State Building Authority, Police Communications, ETM, 5.50%, 10/1/12 350,000 382,784 State Hospital Finance Authority, Crittenton Hospital, Series A, 4.35%, 3/1/09 500,000 505,185 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.00%, 11/15/15 500,000 522,275 State Hospital Finance Authority, Henry Ford Health System, Series A, 5.00%, 11/15/18, (Callable 11/15/16 @ 100) 500,000 506,730 State Hospital Finance Authority, Holland Community Hospital, Series A, 5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505,000 521,867 State Hospital Finance Authority, Marquette General Hospital, Series A, 5.00%, 5/15/13 1,505,000 1,518,891 State Hospital Finance Authority, Oakwood Healthcare System, Series A, 5.00%, 7/15/15 500,000 509,675 State Housing Development Authority, Multi-Family, Series A, AMT, GNMA, 4.15%, 4/20/11 320,000 320,554 State Housing Development Authority, Multi-Family, Series A, AMT, GNMA, 4.40%, 4/20/13 175,000 175,432 State Housing Development Authority, Series A, AMT, 3.95%, 12/1/12 660,000 656,423 State of Michigan, Grant Antic Buildings, FSA, 4.50%, 9/15/15 500,000 523,520 Continued 121 Intermediate Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Michigan, continued State of Michigan, Grant Antic Buildings, FSA, 5.25%, 9/15/18, (Callable 9/15/17 @ 100) $ 500,000 $ 545,710 State of Michigan, Trunk Line, Series A, 5.25%, 11/1/13 600,000 657,954 Strategic Fund, International Project, 4.75%, 8/1/11 (c) 2,240,000 2,341,472 Strategic Fund, International Project, 5.00%, 8/1/13 820,000 873,538 Strategic Fund, Solid Waste Management Project, AMT, 4.63%, 12/1/12 1,000,000 957,410 Wyandotte Electric, Series A, AMT, MBIA, 5.00%, 10/1/13 600,000 629,382 Wyandotte Electric, Series A, AMT, MBIA, 4.50%, 10/1/14 600,000 612,258 ------------ 18,921,923 ------------ Minnesota (2.4%) Housing Finance Agency, Series F, AMT, 4.55%, 7/1/12, (Callable 7/1/11 @ 100) 1,130,000 1,135,424 St Paul Housing & Redevelopment Authority, Smith Avenue Transit Center, 3.50%, 6/1/12, (Callable 6/1/10 @ 100) 2,000,000 2,002,740 ------------ 3,138,164 ------------ Missouri (2.6%) City of Brentwood, Brentwood Square Project, 4.13%, 5/1/11 245,000 246,722 Missouri State Highways & Transit Commission, 4.00%, 5/1/15 425,000 437,899 Missouri State Highways & Transit Commission, 4.25%, 5/1/16 525,000 546,404 Missouri State Highways & Transit Commission, 4.25%, 5/1/17 1,030,000 1,065,690 Missouri State Highways & Transit Commission, 4.50%, 5/1/17 1,070,000 1,126,828 ------------ 3,423,543 ------------ Nebraska (0.7%) Investment Finance Authority, Single Family Housing, Series C, AMT, 3.75%, 9/1/11 220,000 218,922 Investment Finance Authority, Single Family Housing, Series C, AMT, 3.85%, 3/1/12 130,000 128,927 Investment Finance Authority, Single Family Mortgage, Series D, AMT, GNMA-FNMA-FHLMC, 4.10%, 9/1/10 240,000 239,801 Investment Finance Authority, Single Family Mortgage, Series D, AMT, GNMA-FNMA-FHLMC, 4.25%, 9/1/11 340,000 339,990 ------------ 927,640 ------------ Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued Nevada (1.1%) County of Clark, GO, FSA, 4.50%, 6/1/17, (Callable 6/1/16 @ 100) $ 1,325,000 $ 1,381,723 Douglas County, Solid Waste Disposal, GO, AMT, MBIA, 3.75%, 12/1/09 100,000 100,962 ------------ 1,482,685 ------------ New Jersey (2.1%) State Turnpike Authority, Series A, ETM, MBIA, 6.00%, 1/1/13 1,925,000 2,155,692 State Turnpike Authority, Series A, MBIA, 6.00%, 1/1/13 575,000 632,948 ------------ 2,788,640 ------------ New Mexico (3.2%) County of Bernalillo, 5.25%, 4/1/27 500,000 531,055 Mortgage Finance Authority, Single Family Mortgage, Class I, AMT, GNMA-FNMA-FHLMC, 4.05%, 7/1/26, (Callable 7/1/15 @ 100) 515,000 496,090 Mortgage Finance Authority, Single Family Mortgage, Series A, AMT, GNMA-FNMA-FHLMC, 5.50%, 7/1/36, (Callable 1/1/15 @ 102) (a) 200,000 201,724 Mortgage Finance Authority, Single Family Mortgage, Series A2, Class I, AMT, GNMA-FNMA-FHLMC, 3.90%, 1/1/19, (Callable 1/1/16 @ 100) 75,000 74,619 Mortgage Finance Authority, Single Family Mortgage, Series A2, Class I, AMT, GNMA-FNMA-FHLMC, 4.40%, 1/1/27, (Callable 1/1/16 @ 100) 2,000,000 1,972,800 Taos County, Educational Improvements, ETM, 3.88%, 10/1/11 565,000 583,899 University of New Mexico, System Implements, Series A, FSA, 5.00%, 6/1/21, (Callable 6/1/17 @ 100) 365,000 382,206 ------------ 4,242,393 ------------ New York (1.4%) City of New York, Series E, GO, 5.00%, 8/1/16 750,000 807,758 New York State Thruway Authority, Series A, 5.00%, 4/1/21, (Callable 4/1/18 @ 100) 500,000 526,585 New York State Thruway Authority, Series A, 5.00%, 4/1/22, (Callable 4/1/18 @ 100) 500,000 524,165 ------------ 1,858,508 ------------ Ohio (3.6%) Berea, GO, 5.13%, 12/1/13 785,000 826,668 County of Cuyahoga Capital Improvements, GO, 5.25%, 12/1/18, (Callable 12/1/14 @ 100) 915,000 986,224 Housing Finance Agency, Residential Mortgage, Series C, AMT, GNMA-FNMA, 3.55%, 3/1/10 990,000 995,395 Continued 122 Intermediate Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Ohio, continued Housing Finance Agency, Residential Mortgage, Series C, AMT, GNMA-FNMA, 3.70%, 3/1/11 $ 995,000 $ 990,851 Housing Finance Agency, Residential Mortgage, Series C, AMT, GNMA-FNMA, 4.00%, 3/1/14 500,000 487,095 State Economic Enterprise, Series 3, AMT, 4.08%, 6/1/13 395,000 401,486 ------------ 4,687,719 ------------ Oklahoma (0.7%) Housing Finance Agency, Single Family Housing, Home Ownership Loan Program, Series B, AMT, GNMA-FNMA-FHLMC, 4.25%, 9/1/25, (Callable 9/1/15 @ 100) 420,000 417,438 Oklahoma County, Series A, GO, W/I, 4.00%, 8/1/19, (Callable 8/1/18 @ 100) 500,000 492,565 ------------ 910,003 ------------ Oregon (1.5%) State Department of Transportation, Series A, 5.25%, 11/15/16, (Prerefunded 11/15/14 @ 100) 1,775,000 1,975,042 ------------ Pennsylvania (3.0%) Allegheny County Airport Authority, Series B, AMT, FGIC, 5.00%, 1/1/16 1,000,000 991,420 Allegheny County Hospital Development Authority, University of Pittsburgh Medical Center, Series A, 5.00%, 9/1/17 1,000,000 1,057,480 Higher Educational Facilities Authority, Widener University, 3.60%, 7/15/11 250,000 249,788 Higher Educational Facilities Authority, Widener University, 3.75%, 7/15/12 405,000 404,992 Lehigh Northampton Airport Authority, Series A, AMT, MBIA, 5.00%, 1/1/19, (Callable 1/1/15 @ 100) 1,175,000 1,185,845 ------------ 3,889,525 ------------ Puerto Rico (3.5%) Commonwealth of Puerto Rico, Series A, GO, 5.25%, 7/1/22, (Callable 7/1/16 @ 100) 1,000,000 999,950 Commonwealth of Puerto Rico, Series A, GO, 5.00%, 7/1/30, (Mandatory Put 7/1/12 @ 100) (a) 2,000,000 2,021,100 Government Development Bank, Series C, AMT, 5.25%, 1/1/15 1,500,000 1,491,870 ------------ 4,512,920 ------------ Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued South Carolina (0.7%) Anderson County School District No. 2, Series B, GO, 6.00%, 3/1/13, (Prerefunded 3/1/10 @101) $ 890,000 $ 951,997 ------------ Tennessee (2.9%) Housing Development Agency, Series A, 4.00%, 7/1/10 1,100,000 1,114,894 Metropolitan Nashville Airport Authority, Series C, AMT, FGIC, 5.38%, 7/1/14, (Callable 9/8/08 @ 102) 2,570,000 2,623,610 ------------ 3,738,504 ------------ Texas (5.7%) Dallas-Fort Worth International Airport Facilities Improvement Corp., Series A, AMT, XLCA, 5.00%, 11/1/15, (Callable 11/1/09 @ 100) 2,000,000 2,000,080 Longview Independent School District, GO, PSF, W/I, 4.75%, 2/15/36, (Callable 8/15/18 @ 100) 500,000 477,100 Lower Colorado River Authority, 5.75%, 5/15/28, (Callable 5/15/15 @ 100) 1,500,000 1,559,505 North Texas Tollway Authority, Series A, 6.00%, 1/1/23, (Callable 1/1/18 @ 100) 1,000,000 1,053,540 Spring Independent School District, Series A, GO, PSF, W/I, 5.00%, 8/15/16 1,000,000 1,088,840 Texas Municipal Power Agency, AMBAC, 4.00%, 9/1/12, (Callable 9/8/08 @ 100) 500,000 500,355 White Settlement Independent School District, GO, PSF, 4.50%, 8/15/15 1,000,000 755,480 ------------ 7,434,900 ------------ Virginia (1.7%) City of Richmond, GO, FGIC, 5.38%, 7/15/13, (Prerefunded 7/15/11 @ 101) 2,000,000 2,171,280 ------------ Washington (4.7%) Grant County Public Utility District No. 2 Priest Rapids, Series H, FSA, 5.00%, 1/1/11 (c) 2,485,000 2,617,202 King County School District No. 415 Kent, Series A, GO, 5.55%, 12/1/11 2,000,000 2,165,960 Valley Regional Fire Authority, King & Pierce Counties, GO, 4.00%, 12/1/19, (Callable 12/1/18 @ 100) 870,000 849,042 Yakima County, GO, AMBAC, 5.25%, 12/1/16, (Callable 12/1/12 @ 100) 425,000 447,423 ------------ 6,079,627 ------------ Total Municipal Bonds 125,927,878 ------------ Continued 123 Intermediate Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Demand Notes (0.8%) Michigan (0.8%) Michigan Technical University, Series A, AMBAC, 5.00%, 8/6/08 (a) (d) $ 1,000,000 $ 1,000,000 ------------ Total Municipal Demand Notes 1,000,000 ------------ Shares ------------ Money Markets (0.8%) AIM TFIT Tax-Free Cash Reserve Portfolio (b) 111 111 Dreyfus Tax Exempt Cash Management (b) 160,272 160,272 Goldman Sachs Financial Square Funds - Tax-Free Money Market Fund (b) 11,751 11,751 Merrill Lynch Funds For Institutions Series - Institutional Tax-Exempt Fund (b) 820,974 820,974 ------------ Total Money Markets 993,108 ------------ Total Investments (Cost $126,181,688) - 98.0% 127,920,986 Other assets in excess of liabilities - 2.0% 2,635,172 ------------ NET ASSETS - 100.0% $130,556,158 ============ Notes to Schedule of Investments ** Rate represents the effective yield at purchase. (a) Variable rate security. Rate presented represents rate in effect at July 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 transactions. (d) Maturity date is next rate reset date. The following abbreviations are used in the Schedule of Investments: AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax Paper CIFG - CDC IXIX Financial Guaranty Services, Inc. CP - Certificates of Participation ETM - Escrowed to Maturity FGIC - Financial Guaranty Insurance Co. FHLMC - Federal National Mortgage Association 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 Q-SBLF - Qualified School Bond Loan Fund W/I - When Issued XLCA - XL Capital Assurance Continued Investment concentration as a percentage of net assets, by industry: Airport 10.3% Bond Bank 1.9% Development 4.7% Education 1.2% Facilities 2.3% General 8.1% General Obligation 14.3% Higher Education 5.5% Housing 5.4% Investment Companies 0.7% Medical 9.8% Multifamily Housing 0.4% Municipal 1.0% Pollution 0.7% Power 5.9% School District 7.5% Single Family Housing 3.6% Student Loan 0.8% Transportation 12.3% Utilities 0.8% Water 0.8% See notes to schedules of investments and notes to financial statements. 124 Ohio Municipal Bond Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds (95.7%) California (0.5%) California State Department of Water Resources, Central Valley Project, Series AE, 5.00%, 12/1/22, (Callable 6/1/18 @ 100) $ 500,000 $ 526,130 ------------ Colorado (1.9%) Denver City & County Airport System, Series A, FGIC, 5.00%, 11/15/19, (Callable 11/15/16 @ 100) 1,765,000 1,800,847 ------------ Michigan (0.5%) Calumet Laurium & Keweenah Public Schools, GO, FSA, Q-SBLF, 4.00%, 5/1/15 460,000 478,731 ------------ New Mexico (0.6%) County of Bernalillo, 5.25%, 4/1/27 500,000 531,055 ------------ Ohio (87.2%) Akron Bath Copley Joint Township Hospital District, Akron General Health System, Series A, 5.00%, 1/1/14 200,000 206,486 Akron Bath Copley Joint Township Hospital District, Akron General Health System, Series A, 5.00%, 1/1/15 320,000 329,703 Akron Bath Copley Joint Township Hospital District, Summa Health System, Series A, RADIAN, 5.25%, (Callable 11/15/14 @ 100) (c) 1,000,000 1,053,400 American Municipal Power-Ohio, Inc., AMBAC, 5.25%, 1/1/11 1,825,000 1,928,259 Barberton City School District, GO, W/I, 4.50%, 12/1/33, (Callable 6/1/18 @ 100) 355,000 330,125 Beavercreek Local School District, GO, FGIC, 6.60%, 12/1/15 1,500,000 1,725,240 Cincinnati City School District, Classroom Construction and Improvements, GO, FGIC, 5.00%, 12/1/17 1,000,000 1,073,900 Cincinnati City School District, Classroom Facilities Construction and Improvements, GO, FSA, 5.25%, 12/1/14, (Prerefunded 12/1/13 @ 100) (c) 1,500,000 1,655,490 City of Cleveland, GO, AMBAC, 5.25%, 12/1/17, (Callable 12/1/14 @ 100) 1,125,000 1,206,056 City of Cleveland, GO, FSA, CR, AMBAC, 5.50%, 10/1/19 2,000,000 2,250,460 City of Columbus Sewer Revenue, Series A, 5.00%, 6/1/23, (Callable 12/1/17 @ 100) 1,000,000 1,046,970 City of North Olmsted, GO, AMBAC, 6.20%, 12/1/11 3,000,000 3,173,700 Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued Ohio, continued City of Olentangy Local School District, GO, FSA, 5.00%, 12/1/22, (Callable 6/1/16 @ 100) $ 2,000,000 $ 2,082,600 County of Cuyahoga Capital Improvements, GO, 5.25%, 12/1/18, (Callable 12/1/14 @ 100) 2,000,000 2,155,680 County of Cuyahoga Jail Facilities, GO, MBIA-IBC, 5.25%, 10/1/13 3,000,000 3,179,970 County of Erie Hospital Facilities, Firelands Regional Medical Center, Series A, 5.00%, 8/15/08 400,000 400,204 County of Erie Hospital Facilities, Firelands Regional Medical Center, Series A, 5.50%, 8/15/12 250,000 260,890 County of Hamilton Hospital Facilities, Cincinnati Children's Hospital, Series J, FGIC, 4.50%, 5/15/14 1,510,000 1,519,830 County of Lucas, GO, AMBAC-TCRS, 6.65%, 12/1/12, (Callable 12/1/08 @ 100) 100,000 101,229 Dayton-Montgomery County Port Authority, Series A, AMT, 4.75%, 11/15/15 470,000 473,506 Dayton-Montgomery County Port Authority, Parking Garage Project, Series A, 5.00%, 11/15/17, (Callable 5/15/14 @ 100) 860,000 865,943 Franklin County, American Chemical Society Project, 5.50%, 10/1/12, (Callable 10/1/09 @ 101) 2,270,000 2,347,906 Franklin County Convention Facilities Authority, AMBAC, 5.00%, 12/1/26, (Callable 12/1/15 @ 100) 3,000,000 3,045,720 Franklin County, Online Computer Library Center, 5.00%, 4/15/10 2,270,000 2,349,700 Franklin County, Trinity Health Credit, Series A, 5.00%, 6/1/13 475,000 506,122 Housing Finance Agency, Residential Mortgage, Series C, AMT, GNMA-FNMA, 3.90%, 3/1/13 995,000 985,896 Housing Finance Agency, Series A, AMT, GNMA, 3.65%, 9/1/11 570,000 557,460 Housing Finance Agency, Series A, AMT, GNMA, 3.30%, 9/1/30, (Callable 3/1/13 @ 100) 610,000 593,682 Housing Finance Agency, Series A3, AMT, 3.95%, 9/1/08 225,000 225,225 Housing Finance Agency, Series A3, AMT, 4.35%, 9/1/10 140,000 140,906 Housing Finance Agency, Series A3, AMT, 4.55%, 9/1/11 145,000 146,162 Housing Finance Agency, Series C, AMT, GNMA, 4.63%, 9/1/31, (Callable 1/1/11 @ 100) 785,000 777,888 Kettering City School District, GO, FSA, 4.75%, 12/1/20, (Callable 6/1/17 @ 100) 1,860,000 1,929,118 Continued 125 Ohio Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Ohio, continued Miami County Hospital Facilities, Upper Valley Medical Center, 5.25%, 5/15/15 $ 500,000 $ 508,795 Municipal Electric Generation Agency, Joint Venture, AMBAC, 5.00%, 2/15/14 1,885,000 2,021,078 Ohio State Higher Educational Facility Commission, Denison University Project, 5.50%, 11/1/12, (Callable 11/1/11 @ 101) 1,000,000 1,083,060 Ohio State Higher Educational Facility Commission, John Carroll University, 5.25%, 11/15/14, (Callable 11/15/13 @ 100) 1,435,000 1,533,570 Ohio State Higher Educational Facility Commission, John Carroll University, 5.25%, 11/15/15, (Callable 11/15/13 @ 100) 1,490,000 1,581,367 Ohio State Higher Educational Facility Commission, Xavier University Project, ETM, CIFG, 5.00%, 5/1/16 2,010,000 2,170,298 Ohio State Higher Educational Facility Commission, Xavier University Project, CIFG, 5.00%, 5/1/19, (Prerefunded 5/1/16 @ 100) 3,115,000 3,363,421 Ohio State University, Series B, 5.25%, 6/1/18, (Callable 6/1/13 @ 100) 5,880,000 6,241,503 Orrville City School District, School Facilities Construction, GO, AMBAC, 4.50%, 12/1/18, (Callable 12/1/17 @ 100) 415,000 423,537 Orrville City School District, School Facilities Construction, GO, AMBAC, 5.00%, 12/1/20, (Callable 12/1/17 @ 100) 350,000 362,103 Orrville City School District, School Facilities Construction, GO, AMBAC, 5.00%, 12/1/22, (Callable 12/1/17 @ 100) 500,000 510,805 Richland County Hospital Facilities, Medcentral Health Systems, 5.00%, 11/15/15 770,000 784,522 State Economic Enterprise, Series 2002-6, AMT, 4.40%, 12/1/12 740,000 757,767 State Higher Educational Facility Commission, Case Western Reserve University, Series D, 6.25%, 7/1/14 6,500,000 7,235,085 State of Ohio, Common Schools, GO, 5.00%, 6/15/13 1,000,000 1,081,810 State of Ohio, Higher Education, Series A, GO, 4.25%, 5/1/16 2,310,000 2,402,608 State of Ohio, Higher Educational Facility Commission, Mount Union College Project, 4.75%, 10/1/15 385,000 406,722 Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued Ohio, continued State of Ohio, Higher Educational Facility Commission, Mount Union College Project, 4.75%, 10/1/16 $ 300,000 $ 315,726 State of Ohio, Higher Educational Facility Commission, Mount Union College Project, 5.25%, 10/1/21, (Callable 10/1/16 @ 100) 980,000 1,018,798 State of Ohio, Higher Educational Facility Commission, Ohio Northern University Project, 3.50%, 5/1/10 475,000 479,702 State of Ohio, Higher Educational Facility Commission, Ohio Northern University Project, 3.88%, 5/1/13 645,000 651,798 Steubenville Hospital Facilities, Trinity Health, 2.84%, 10/1/30 (a) 970,000 756,396 Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, 5.00%, 12/1/08 1,155,000 1,163,628 Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, 5.00%, 12/1/09 1,110,000 1,136,773 University of Akron, FGIC, 5.50%, 1/1/20, (Prerefunded 1/1/10 @ 101) 2,015,000 2,126,026 University of Cincinnati, University Center Project, CP, MBIA, 5.00%, 6/1/10 300,000 312,069 ------------ 81,054,393 ------------ Pennsylvania (1.1%) Allegheny County Hospital Development Authority, University of Pittsburgh Medical Center, Series A, 5.00%, 9/1/16 1,000,000 1,053,560 ------------ Puerto Rico (2.2%) Commonwealth of Puerto Rico, Series A, GO, 5.00%, 7/1/30, (Mandatory Put 7/1/12 @ 100) (a) 2,000,000 2,021,100 ------------ Texas (1.7%) City of Pflugerville Independent School District, GO, PSF, 5.00%, 2/15/33, (Callable 2/15/17 @ 100) 1,000,000 1,006,890 Spring Independent School District, Series A, GO, PSF, 5.00%, 8/15/15 500,000 544,415 ------------ 1,551,305 ------------ Total Municipal Bonds 89,017,121 ------------ Municipal Demand Notes (1.4%) Ohio (1.4%) Air Quality Development Authority, Pollution Control, Series C, 2.30%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) 300,000 300,000 Continued 126 Ohio Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Demand Notes, continued Ohio, continued Air Quality Development Authority, Pollution Control, Series C, AMT, 2.40%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) $ 1,000,000 $ 1,000,000 ------------ 1,300,000 ------------ Total Municipal Demand Notes 1,300,000 ------------ Shares ------------ Money Markets (0.1%) Dreyfus Tax Exempt Cash Management (b) 46,640 46,640 Goldman Sachs Financial Square Funds - Tax-Free Money Market Fund (b) 27,002 27,002 ------------ Total Money Markets 73,642 ------------ Total Investments (Cost $89,532,832) - 97.2% 90,390,763 Other assets in excess of liabilities - 2.8% 2,601,371 ------------ NET ASSETS - 100.0% $ 92,992,134 ============ Notes to Schedule of Investments (a) Variable rate security. Rate presented represents rate in effect at July 31, 2008. (b) Investment is in Institutional Shares of underlying fund. (c) All or part of this security has been designated as collateral for a when issued transaction. (d) Maturity date is next rate reset date. 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 ETM - Escrowed to Maturity FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GNMA - Government National Mortgage Association GO - General Obligation IBC - Bond Certificate LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance PSF - Public School Fund Q-SBLF - Qualified School Bond Loan Fund Radian - Radian Guaranty, Inc. TCRS - Temporary Custodian Receipts W/I - When Issued Continued Investment concentration as a percentage of net assets, by industry: Airport 1.9% Development 3.3% Education 0.4% Facilities 3.3% General 5.6% General Obligation 18.9% Higher Education 30.7% Housing 2.8% Investment Companies 0.1% Medical 7.9% Pollution 1.4% Power 4.3% School District 12.7% Single Family Housing 0.8% Transportation 1.4% Utilities 1.1% Water 0.6% See notes to schedules of investments and notes to financial statements. 127 Michigan Municipal Bond Schedule of Investments July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds (96.7%) Michigan (95.5%) Avondale School District, GO, Q-SBLF, 5.00%, 5/1/10 $ 800,000 $ 833,240 Calumet Laurium & Keweenah Public Schools, GO, FSA, Q-SBLF, 3.75%, 5/1/13 220,000 226,838 Calumet Laurium & Keweenah Public Schools, GO, FSA, Q-SBLF, 4.00%, 5/1/14 455,000 474,656 Canton Charter Township Capital Improvements, GO, FSA, 5.00%, 4/1/14 100,000 108,379 Chippewa Valley Schools, GO, FSA, Q-SBLF, 5.00%, 5/1/14 500,000 542,180 City of Ann Arbor Water Supply System, Series Y, MBIA, 5.00%, 2/1/10 880,000 913,396 City of Grand Haven, GO, FSA, 3.75%, 4/1/16 245,000 249,733 City of Zeeland Water Supply System, AMT, 4.00%, 10/1/08 270,000 270,578 City of Zeeland Water Supply System, AMT, 4.00%, 10/1/09 280,000 282,638 Clarkston Community Schools, GO, FSA-CR, Q-SBLF, 5.25%, 5/1/29, (Prerefunded 5/1/13 @ 100) 1,000,000 1,095,420 Coldwater Electric, AMT, XLCA, 4.50%, 8/1/11 515,000 530,084 Coldwater Electric, AMT, XLCA, 4.50%, 8/1/13 570,000 585,367 Detroit, Cobo Hall, MBIA, 5.00%, 9/30/08 1,600,000 1,605,552 Detroit Sewer Disposal, MBIA, 5.50%, 7/1/16 1,500,000 1,637,340 Detroit Water Supply System, Series A, FSA, 5.00%, 7/1/15 1,000,000 1,067,240 Essexville-Hampton Public Schools, GO, FSA, Q-SBLF, 4.00%, 5/1/14 250,000 260,800 Fremont Public School District, GO, FSA, Q-SBLF, 3.25%, 5/1/13 330,000 333,026 Goodrich Area School District, GO, FSA, Q-SBLF, 3.50%, 5/1/13 395,000 400,333 Grand Rapids & Kent County Joint Building Authority, GO, 5.50%, 10/1/09 605,000 630,114 Higher Education Facilities Authority, Hope College Project, 4.60%, 10/1/08 320,000 320,118 Higher Education Student Loan Authority, Series XII-W, AMT, AMBAC, 4.60%, 9/1/08 1,000,000 999,170 Higher Education Student Loan Authority, Series XII-W, AMT, AMBAC, 4.75%, 3/1/09 200,000 202,892 Higher Education Student Loan Authority, Series XVII-I, AMT, AMBAC, 3.65%, 3/1/10 1,000,000 1,006,370 Continued Principal Amount Value ------------ ------------ Municipal Bonds, continued Michigan, continued Kalamazoo Water Supply System, AMBAC, 5.00%, 9/1/14 $ 450,000 $ 490,738 Kalamazoo Water Supply System, AMBAC, 5.00%, 9/1/15 510,000 557,879 Kent Hospital Finance Authority, Spectrum Health, Series A, 5.25%, 1/15/09 1,075,000 1,089,502 Kent Hospital Finance Authority, Spectrum Health, Series B, 5.00%, 7/15/11 600,000 623,256 Michigan State South Central Power Agency, AMBAC, 4.50%, 11/1/11 500,000 512,080 Michigan State Trunk Line, FGIC, 5.00%, 9/1/14 1,000,000 1,079,120 Michigan State University, Series A, AMBAC, 4.00%, 2/15/12 450,000 463,887 Mount Clemens Community School District, GO, Q-SBLF, 5.50%, 5/1/12, (Prerefunded 11/1/11 @ 100) 1,075,000 1,165,612 Municipal Bond Authority, Government Loan Program, Series C, 5.00%, 5/1/10 1,000,000 1,039,470 Municipal Bond Authority, State Clean Water Revolving Fund, 5.00%, 10/1/13 1,000,000 1,084,880 Ovid Elsie Area Schools, GO, FSA, Q-SBLF, 4.00%, 5/1/15 525,000 546,378 Portage Public Schools, Building and Site, GO, FSA, 3.25%, 5/1/13 250,000 250,648 South Lyon Community Schools, Series II, GO, MBIA, 5.25%, 5/1/18, (Prerefunded 5/1/14 @ 100) 675,000 743,270 State Building Authority, Facilities Program, Series I, AMBAC, 5.00%, 10/15/29, (Mandatory Put10/15/11 @ 100) (a) 1,000,000 1,059,190 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.00%, 11/15/12 250,000 260,925 State Hospital Finance Authority, Henry Ford Health System, Series A, 5.00%, 11/15/14 250,000 261,762 State Hospital Finance Authority, Holland Community Hospital, Series A, 4.15%, 1/1/12 450,000 452,686 State Hospital Finance Authority, Marquette General Hospital, Series A, 5.00%, 5/15/10 905,000 916,448 State Hospital Finance Authority, McLaren Health Care, Series C, 4.00%, 8/1/08 405,000 405,000 State Hospital Finance Authority, Oakwood Healthcare System, Series A, 5.00%, 7/15/11 530,000 544,718 State Housing Development Authority, Parkway Meadows Project, FSA, 3.50%, 10/15/09 710,000 722,659 Continued 128 Michigan Municipal Bond Schedule of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- Principal Amount Value ------------ ------------ Municipal Bonds, continued Michigan, continued State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.00%, 4/1/12 $ 145,000 $ 144,458 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.00%, 10/1/12 195,000 194,179 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.05%, 4/1/13 100,000 99,200 State Housing Development Authority, Rental Housing, Series B, AMT, FSA, 4.05%, 10/1/13 210,000 208,160 State Housing Development Authority, Rental Housing, Series D, AMT, 3.75%, 10/1/11 500,000 493,800 State of Michigan, Series A, CP, MBIA, 5.00%, 9/1/31, (Mandatory Put 9/1/11 @ 100) (a) 2,000,000 2,105,700 State of Michigan Comprehensive Transportation, Series A, FSA, 5.50%, 5/15/11 950,000 1,019,626 State of Michigan, Grant Antic Buildings, FSA, 4.25%, 9/15/12 1,000,000 1,034,270 Strategic Fund, Solid Waste Management Project, AMT, 4.63%, 12/1/12 250,000 239,352 University of Michigan Hospital, 5.00%, 12/1/09 510,000 528,493 Warren Consolidated School District, GO, FSA, 5.00%, 5/1/16 750,000 816,630 Wayne County Airport Authority, AMT, MBIA, 5.00%, 12/1/09 1,000,000 1,022,420 Wayne County Community College, GO, FGIC, 5.25%, 7/1/09 1,000,000 1,025,360 Wayne Westland Community Schools, GO, FSA, Q-SBLF, 5.00%, 5/1/10 1,000,000 1,045,730 Wyandotte Electric, Series A, AMT, MBIA, 4.50%, 10/1/11 600,000 618,840 Wyandotte Electric, Series A, AMT, MBIA, 5.00%, 10/1/12 600,000 629,292 ------------ 40,071,082 ------------ Puerto Rico (1.2%) Government Development Bank, Series C, AMT, 5.25%, 1/1/15 500,000 497,290 ------------ Total Municipal Bonds 40,568,372 ------------ Municipal Demand Notes (2.0%) Michigan (2.0%) Michigan Technical University, Series A, AMBAC, 5.00%, 8/6/08 (a) (c) 850,000 850,000 ------------ Total Municipal Demand Notes 850,000 ------------ Continued Shares Value ------------ ------------ Money Markets (0.1%) AIM TFIT Tax-Free Cash Reserve Portfolio (b) 188 $ 188 Dreyfus Tax Exempt Cash Management (b) 30,260 30,260 Goldman Sachs Financial Square Funds - Tax-Free Money Market Fund (b) 495 495 Merrill Lynch Funds For Institutions Series - Institutional Tax-Exempt Fund (b) 5,812 5,812 ------------ Total Money Markets 36,755 ------------ Total Investments (Cost $41,126,406) - 98.8% 41,455,127 Other assets in excess of liabilities - 1.2% 487,376 ------------ NET ASSETS - 100.0% $ 41,942,503 ============ Notes to Schedule of Investments (a) Variable rate security. Rate presented represents rate in effect at July 31, 2008. (b) Investment is in Institutional Shares of underlying fund/portfolio. (c) Maturity date is next rate reset date. 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. GO - General Obligation MBIA - Municipal Bond Investors Assurance Q-SBLF - Qualifed School Bond Loan Fund XLCA - XL Capital Assurance Investment concentration as a percentage of net assets, by industry: Airport 2.4% Development 1.2% Facilities 7.9% General 10.1% General Obligation 3.3% Higher Education 6.3% Housing 4.4% Investment Companies 0.1% Medical 12.1% Pollution 0.6% Power 6.9% School District 20.8% Student Loan 5.3% Transportation 5.0% Utilities 3.9% Water 8.5% See notes to schedules of investments and notes to financial statements. 129 Fifth Third Funds Notes to Schedules of Investments July 31, 2008 - -------------------------------------------------------------------------------- Cost and appreciation (depreciation) of investments for federal income tax purposes at July 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 $ 94,665,098 $ 13,864,832 $ (7,943,738) $ 5,921,094 Mid Cap Growth 288,239,748 31,508,330 (20,878,487) 10,629,843 Quality Growth 448,178,212 84,265,051 (9,607,934) 74,657,117 Structured Large Cap Plus 139,670,647 30,641,042 (23,527,028) 7,114,014 Equity Index 202,537,413 204,864,794 (21,173,620) 183,691,174 Micro Cap Value 50,921,483 4,529,645 (6,766,907) (2,237,262) Small Cap Value 114,608,833 9,732,505 (8,752,201) 980,304 All Cap Value 300,429,011 41,219,443 (32,479,393) 8,740,050 Disciplined Large Cap Value 523,321,130 67,619,486 (63,593,574) 4,025,912 LifeModel Aggressive(SM) 168,219,469 9,234,598 (9,005,014) 229,584 LifeModel Moderately Aggressive(SM) 281,326,430 16,674,032 (14,124,392) 2,549,640 LifeModel Moderate(SM) 436,358,906 18,761,560 (34,385,663) (15,624,103) LifeModel Moderately Conservative(SM) 86,772,570 4,069,902 (6,557,053) (2,487,151) LifeModel Conservative(SM) 54,400,800 1,167,887 (4,900,201) (3,732,314) Strategic Income 160,600,942 2,025,379 (19,582,176) (17,556,797) Dividend Growth 24,228,400 2,237,211 (1,047,013) 1,190,198 International Equity 494,585,571 27,044,848 (43,780,758) (16,735,910) High Yield 67,692,251 219,270 (4,933,323) (4,714,053) Total Return Bond 679,561,366 3,460,780 (56,538,432) (53,077,652) Short Term Bond 250,783,360 1,745,580 (5,278,518) (3,532,938) Municipal Bond 43,343,530 781,471 (498,094) 283,377 Intermediate Municipal Bond 126,162,848 2,909,737 (1,151,599) 1,758,138 Ohio Municipal Bond 89,518,492 1,506,221 (633,950) 872,271 Michigan Municipal Bond 41,105,736 460,292 (110,901) 349,391 Open futures contracts as of July 31, 2008: Unrealized Number of Notional Appreciation/ Market Contracts Contract Type Amount (Depreciation) Value --------- ---------------------------------- ------------ -------------- ------------ Structured Large Cap Plus 2 S&P 500 Index, 9/18/08 $ 614,258 $ 19,292 $ 633,550 ==== ============ ============ ============ Equity Index 12 S&P 500 Index, 9/18/08 3,924,813 (123,513) 3,801,300 ==== ============ ============ ============ International Equity 5 Australian Dollar Futures, 9/15/08 482,072 (13,622) 468,450 11 British Pound Futures, 9/15/08 1,364,938 (6,232) 1,358,706 13 Euro Currency Futures, 9/15/08 2,577,308 (49,295) 2,528,013 13 FTSE 100 Index Futures, 9/19/08 1,359,296 33,590 1,392,886 16 Japanese Yen Futures, 9/15/08 1,889,843 (31,443) 1,858,400 5 Share Price Index 200 Futures, 9/18/08 576,631 9,280 585,911 50 STOXX 50 Index, 9/19/08 2,497,485 137,883 2,635,368 15 TOPIX Index Futures, 9/12/08 1,763,103 46,463 1,809,566 ---- ------------ ------------ ------------ 128 12,510,676 126,624 12,637,300 ==== ============ ============ ============ Total Return Bond 85 U.S. Treasury 10-Year Note, 9/19/08 9,830,998 (70,607) 9,760,391 295 U.S. Treasury 5-Year Note, 9/30/08 32,382,549 461,553 32,844,102 ---- ------------ ------------ ------------ 380 42,213,547 390,946 42,604,493 ==== ============ ============ ============ Short Term Bond 160 U.S. Treasury 2-Year Note, 9/30/08 33,764,939 155,061 33,920,000 ==== ============ ============ ============ See notes to financial statements. 130 Fifth Third Funds Notes to Schedules of Investments, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 July 31, 2008. Balance at Options Options Options Balance at Number of Contracts July 31, 2007 Written terminated Expired January 31, 2008 ------------- ------- ---------- -------- ---------------- Dividend Growth 0 280 (125) (155) 0 Premiums Dividend Growth $ 0 20,795 (3,625) (17,170) $ 0 Open Credit Default Swaps as of July 31, 2008: 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 $ (152,941) ----------- See notes to financial statements. 131 Fifth Third Funds Statements of Assets and Liabilities July 31, 2008 - -------------------------------------------------------------------------------- Small Cap Mid Cap Quality Growth Growth Growth ------------- ------------- ------------- Assets: Investments, at cost $ 92,115,425 $ 283,049,019 $ 429,206,533 Net unrealized appreciation/(depreciation) 6,550,556 11,129,971 75,094,073 ------------- ------------- ------------- Investments, at value 98,665,981 294,178,990 504,300,606 Investment in affiliates, at value (cost $1,920,211, $4,690,601, $18,534,723, $93,723, $1,663,530, $3,376,965, $5,916,928, $15,874,134, $689,415, and $4,610,621; respectively) 1,920,211 4,690,601 18,534,723 ------------- ------------- ------------- Total Investments 100,586,192 298,869,591 522,835,329 Cash -- -- -- Interest, dividends and other receivables 30,066 92,635 300,665 Receivable for investments sold 635,848 4,559,718 14,186,741 Receivable for Fund shares sold 19,501 19,947 183,997 Receivable from Advisor and affiliates -- -- -- Prepaid expenses and other assets 23,840 77,387 40,553 ------------- ------------- ------------- Total Assets 101,295,447 303,619,278 537,547,285 ------------- ------------- ------------- Liabilities: Securities sold short at value (Proceeds $--, $--, $--, $-- $--, $--, $--, $--, $--, $52,319,066 and $--; respectively) -- -- -- Cash overdraft -- 3,236,878 8,250,705 Payable for investments purchased 266,909 2,021,370 14,354,629 Payable upon return of securities loaned 22,191,345 63,530,259 35,511,535 Payable for Fund shares redeemed 50,575 195,797 246,279 Payable for variation margin on futures contracts -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 51,633 190,743 376,417 Distribution and administrative servicing fee 3,073 8,292 33,483 Payable for dividends on securities sold short -- -- -- Other 38,954 82,795 174,546 ------------- ------------- ------------- Total Liabilities 22,602,489 69,266,134 58,947,594 ------------- ------------- ------------- Net Assets: Paid-in Capital 73,154,477 206,308,687 393,671,264 Accumulated net investment income/(loss) (5,370) 246,177 (1) Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency (1,006,705) 16,668,309 9,834,355 Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 6,550,556 11,129,971 75,094,073 ------------- ------------- ------------- Net Assets $ 78,692,958 $ 234,353,144 $ 478,599,691 ============= ============= ============= Market value of securities loaned $ 21,878,933 $ 64,326,137 $ 35,071,710 ============= ============= ============= Net Assets: Institutional Shares $ 66,801,071 $ 209,073,675 $ 371,614,626 Class A Shares 10,721,813 20,378,357 90,014,796 Class B Shares 897,361 4,187,412 14,165,239 Class C Shares 272,713 713,700 2,805,030 Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA ------------- ------------- ------------- Total $ 78,692,958 $ 234,353,144 $ 478,599,691 ============= ============= ============= Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 8,260,804 17,375,450 22,421,348 Class A Shares 1,421,183 1,762,320 5,575,937 Class B Shares 129,689 392,085 932,669 Class C Shares 39,343 70,458 190,553 Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA ------------- ------------- ------------- Total 9,851,019 19,600,313 29,120,507 ============= ============= ============= Net Asset Value Institutional Shares $ 8.09 $ 12.03 $ 16.57 ============= ============= ============= Class A Shares - redemption price per share $ 7.54 $ 11.56 $ 16.14 ============= ============= ============= Class B Shares - offering price per share* $ 6.92 $ 10.68 $ 15.19 ============= ============= ============= Class C Shares - offering price per share* $ 6.93 $ 10.13 $ 14.72 ============= ============= ============= Select Shares NA NA NA ============= ============= ============= Preferred Shares NA NA NA ============= ============= ============= Trust Shares NA NA NA ============= ============= ============= Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 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 $ 7.94 $ 12.17 $ 16.99 ============= ============= ============= - ---------- * Redemption price per share varies by length of time shares are held. See notes to financial statements. 132 Fifth Third Funds Statements of Assets and Liabilities July 31, 2008 - -------------------------------------------------------------------------------- Dividend Micro Cap Small Cap All Cap Growth Value Value Value ------------- ------------ ------------- ------------- Assets: Investments, at cost $ 24,060,758 $ 48,132,055 $ 111,060,572 $ 291,908,806 Net unrealized appreciation/(depreciation) 1,264,117 (1,111,364) 1,151,600 11,343,327 ------------- ------------ ------------- ------------- Investments, at value 25,324,875 47,020,691 112,212,172 303,252,133 Investment in affiliates, at value (cost $1,920,211, $4,690,601, $18,534,723, $93,723, $1,663,530, $3,376,965, $5,916,928, $15,874,134, $689,415, and $4,610,621; respectively) 93,723 1,663,530 3,376,965 5,916,928 ------------- ------------ ------------- ------------- Total Investments 25,418,598 48,684,221 115,589,137 309,169,061 Cash -- -- -- 1,805 Interest, dividends and other receivables 17,550 11,549 41,695 329,861 Receivable for investments sold -- 479,341 -- -- Receivable for Fund shares sold 1,841 42,760 78,895 147,539 Receivable from Advisor and affiliates 3,367 -- -- -- Prepaid expenses and other assets 13,448 26,993 27,793 51,935 ------------- ------------ ------------- ------------- Total Assets 25,454,804 49,244,864 115,737,520 309,700,201 ------------- ------------ ------------- ------------- Liabilities: Securities sold short at value (Proceeds $--, $--, $--, $-- $--, $--, $--, $--, $--, $52,319,066 and $--; respectively) -- -- -- -- Cash overdraft -- 1,637 -- -- Payable for investments purchased 607 79,219 455,470 13,329 Payable upon return of securities loaned 5,344,714 10,927,545 25,743,204 66,082,044 Payable for Fund shares redeemed 2,154 144,702 72,823 496,433 Payable for variation margin on futures contracts -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates -- 10,246 77,433 195,951 Distribution and administrative servicing fee 1,227 5,486 1,353 30,410 Payable for dividends on securities sold short -- -- -- -- Other 23,502 81,098 24,549 91,419 ------------- ------------ ------------- ------------- Total Liabilities 5,372,204 11,249,933 26,374,832 66,909,586 ------------- ------------ ------------- ------------- Net Assets: Paid-in Capital 32,378,909 42,558,204 89,115,358 221,128,385 Accumulated net investment income/(loss) 45,157 30,996 531,599 474,171 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency (13,605,583) (3,482,905) (1,435,869) 9,844,732 Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 1,264,117 (1,111,364) 1,151,600 11,343,327 ------------- ------------ ------------- ------------- Net Assets $ 20,082,600 $ 37,994,931 $ 89,362,688 $ 242,790,615 ============= ============ ============= ============= Market value of securities loaned $ 5,616,201 $ 10,600,034 $ 25,057,559 $ 68,036,286 ============= ============ ============= ============= Net Assets: Institutional Shares $ 16,555,778 $ 22,662,252 $ 86,462,833 $ 165,713,571 Class A Shares 3,073,969 10,551,766 1,681,840 52,998,504 Class B Shares 224,575 3,031,887 834,272 15,431,223 Class C Shares 228,278 1,749,026 383,743 8,647,317 Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA ------------- ------------ ------------- ------------- Total $ 20,082,600 $ 37,994,931 $ 89,362,688 $ 242,790,615 ============= ============ ============= ============= Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 696,766 6,041,256 5,075,302 9,215,707 Class A Shares 131,658 3,023,756 99,892 2,996,141 Class B Shares 9,951 958,355 51,795 913,257 Class C Shares 10,415 552,444 23,880 513,007 Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA ------------- ------------ ------------- ------------- Total 848,790 10,575,811 5,250,869 13,638,112 ============= ============ ============= ============= Net Asset Value Institutional Shares $ 23.76 $ 3.75 $ 17.04 $ 17.98 ============= ============ ============= ============= Class A Shares - redemption price per share $ 23.35 $ 3.49 $ 16.84 $ 17.69 ============= ============ ============= ============= Class B Shares - offering price per share* $ 22.57 $ 3.16 $ 16.11 $ 16.90 ============= ============ ============= ============= Class C Shares - offering price per share* $ 21.92 $ 3.17 $ 16.07 $ 16.86 ============= ============ ============= ============= 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 $ 24.58 $ 3.67 $ 17.73 $ 18.62 ============= ============ ============= ============= Disciplined Structured Large Cap Large Cap Equity Value Plus Index ------------- ------------- ------------- Assets: Investments, at cost $ 503,984,551 $191,212,262 $ 194,316,945 Net unrealized appreciation/(depreciation) 7,488,357 (3,635,472) 187,382,351 ------------- ------------ ------------- Investments, at value 511,472,908 187,576,790 381,699,296 Investment in affiliates, at value (cost $1,920,211, $4,690,601, $18,534,723, $93,723, $1,663,530, $3,376,965, $5,916,928, $15,874,134, $689,415, and $4,610,621; respectively) 15,874,134 689,415 4,529,291 ------------- ------------ ------------- Total Investments 527,347,042 188,266,205 386,228,587 Cash 801 -- 195 Interest, dividends and other receivables 709,128 215,648 448,536 Receivable for investments sold 9,312,240 -- -- Receivable for Fund shares sold 361,450 268 252,081 Receivable from Advisor and affiliates -- -- -- Prepaid expenses and other assets 36,345 8,971 36,164 ------------- ------------ ------------- Total Assets 537,767,006 188,491,092 386,965,563 ------------- ------------ ------------- Liabilities: Securities sold short at value (Proceeds $--, $--, $--, $-- $--, $--, $--, $--, $--, $52,319,066 and $--; respectively) -- 41,481,544 -- Cash overdraft -- -- -- Payable for investments purchased 9,773,848 302 609,667 Payable upon return of securities loaned 16,324,034 -- 33,029,455 Payable for Fund shares redeemed 705,590 10,571 1,652,826 Payable for variation margin on futures contracts -- 4,174 52,800 Accrued expenses and other payables: Payable to Advisor and affiliates 383,039 84,806 9,483 Distribution and administrative servicing fee 47,141 4,069 35,421 Payable for dividends on securities sold short -- 52,161 -- Other 80,549 44,819 70,327 ------------- ------------ ------------- Total Liabilities 27,314,201 41,682,446 35,459,979 ------------- ------------ ------------- Net Assets: Paid-in Capital 498,036,497 159,229,161 171,457,684 Accumulated net investment income/(loss) 1,984,946 734,778 1,085,044 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency 2,943,005 (20,376,684) (8,295,981) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 7,488,357 7,221,391 187,258,837 ------------- ------------ ------------- Net Assets $ 510,452,805 $146,808,646 $ 351,505,584 ============= ============ ============= Market value of securities loaned $ 18,277,189 $ -- $ 36,830,354 ============= ============ ============= Net Assets: Institutional Shares $ 487,005,553 $133,505,968 $ 169,015,564 Class A Shares 17,758,512 12,505,421 55,639,525 Class B Shares 3,932,417 722,541 3,028,636 Class C Shares 1,756,323 74,716 1,875,842 Select Shares NA NA 11,174,733 Preferred Shares NA NA 56,847,112 Trust Shares NA NA 53,924,172 ------------- ------------ ------------- Total $ 510,452,805 $146,808,646 $ 351,505,584 ============= ============ ============= Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 42,423,775 9,109,546 7,026,468 Class A Shares 1,551,643 865,206 2,320,784 Class B Shares 339,853 50,144 127,018 Class C Shares 155,129 5,184 78,624 Select Shares NA NA 464,707 Preferred Shares NA NA 2,364,006 Trust Shares NA NA 2,241,965 ------------- ------------ ------------- Total 44,470,400 10,030,080 14,623,572 ============= ============ ============= Net Asset Value Institutional Shares $ 11.48 $ 14.66 $ 24.05 ============= ============ ============= Class A Shares - redemption price per share $ 11.44 $ 14.45 $ 23.97 ============= ============ ============= Class B Shares - offering price per share* $ 11.57 $ 14.41 $ 23.84 ============= ============ ============= Class C Shares - offering price per share* $ 11.32 $ 14.41 $ 23.86 ============= ============ ============= Select Shares NA NA $ 24.05 ============= ============ ============= Preferred Shares NA NA $ 24.05 ============= ============ ============= Trust Shares NA NA $ 24.05 ============= ============ ============= 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 $ 12.04 $ 15.21 $ 25.23 ============= ============ ============= See notes to financial statements. 133 Fifth Third Funds Statements of Assets and Liabilities July 31, 2008 - -------------------------------------------------------------------------------- LifeModel International Strategic LifeModel Moderately Equity Income Aggressive(SM) Aggressive(SM) ------------- ------------- -------------- -------------- Assets: Investments, at cost $ 490,259,668 $ 152,071,848 $ -- $ -- Net unrealized appreciation/(depreciation) (16,656,820) (17,156,075) -- -- ------------- ------------- -------------- -------------- Investments, at value 473,602,848 134,915,773 -- -- Investment in affiliates, at value (cost $4,246,813, $8,128,372, $164,550,846, $277,422,597, $431,370,008, $85,449,475, $53,653,608, $--, $30,021,652, $4,149,326, and $--; respectively) 4,246,813 8,128,372 168,449,053 283,876,070 ------------- ------------- -------------- -------------- Total Investments 477,849,661 143,044,145 168,449,053 283,876,070 ------------- ------------- -------------- -------------- Cash -- 2,763,340 -- -- Cash collateral for futures 515,575 -- -- -- Foreign currency, at value (cost $4,309,361, $--, $--, $--, $--, $--, $--, $--, $--, $-- and $--; respectively) 4,282,527 -- -- -- Interest, dividends and other receivables 812,832 757,405 2,088+ 4,028+ Receivable for investments sold -- 19,882 -- -- Receivable for Fund shares sold 42,258 10,125 77,939 143,636 Receivable for variation margin on futures contracts -- -- -- -- Reclaims receivable 492,576 -- -- -- Receivable from Advisor and affiliates -- -- 17,119 24,617 Prepaid expenses and other assets 53,416 27,382 11,163 11,086 ------------- ------------- -------------- -------------- Total Assets 484,048,845 146,622,279 168,557,362 284,059,437 ------------- ------------- -------------- -------------- Liabilities: Cash overdraft -- -- -- -- Distributions payable -- 429,055 -- -- Payable for investments purchased 2,730,140 2,954,355 2,083+ 4,022+ Payable upon return of securities loaned 36,115,304 26,566,223 -- -- Payable for Fund shares redeemed 544,464 370,132 220,208 656,974 Payable for variation margin on futures contracts 1,568 -- -- -- Unrealized depreciation on credit default agreements -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 380,234 76,229 -- -- Distribution and administrative servicing fee 8,685 12,551 22,796 63,336 Other 216,742 48,144 54,176 90,779 ------------- ------------- -------------- -------------- Total Liabilities 39,997,137 30,456,689 299,263 815,111 ------------- ------------- -------------- -------------- Net Assets: Paid-in Capital 416,231,964 134,928,886 153,060,646 259,296,615 Accumulated net investment income/(loss) 7,073,147 (716,566) 524,464 2,112,567 Accumulated net realized gain/(loss) from investment transactions, swaps, futures and foreign currency 37,326,217 (890,780) 10,774,782 15,381,671 Net unrealized appreciation/(depreciation) on investments, swaps, futures and foreign currency (16,579,620) (17,155,950) 3,898,207 6,453,473 ------------- ------------- -------------- -------------- Net Assets $ 444,051,708 $ 116,165,590 $ 168,258,099 $ 283,244,326 ============= ============= ============== ============== Market value of securities loaned $ 34,340,106 $ 25,881,499 $ -- $ -- ============= ============= ============== ============== Net Assets: Institutional Shares $ 420,992,965 $ 90,638,866 $ 107,928,664 $ 135,473,575 Class A Shares 20,160,426 14,767,890 44,891,633 98,658,170 Class B Shares 2,176,905 979,262 13,201,530 43,035,858 Class C Shares 721,412 9,779,572 2,236,272 6,076,723 ------------- ------------- -------------- -------------- Total $ 444,051,708 $ 116,165,590 $ 168,258,099 $ 283,244,326 ============= ============= ============== ============== Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 34,396,593 9,660,873 7,952,797 10,541,508 Class A Shares 1,648,717 1,577,598 3,327,640 7,687,411 Class B Shares 182,120 104,627 1,006,447 3,384,146 Class C Shares 62,157 1,053,262 170,625 477,920 ------------- ------------- -------------- -------------- Total 36,289,587 12,396,360 12,457,509 22,090,985 ============= ============= ============== ============== Net Asset Value Institutional Shares $ 12.24 $ 9.38 $ 13.57 $ 12.85 ============= ============= ============== ============== Class A Shares-redemption price per share $ 12.23 $ 9.36 $ 13.49 $ 12.83 ============= ============= ============== ============== Class B Shares - offering price per share* $ 11.95 $ 9.36 $ 13.12 $ 12.72 ============= ============= ============== ============== Class C Shares - offering price per share* $ 11.61 $ 9.29 $ 13.11 12.71 ============= ============= ============== ============== 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 $ 12.87 $ 9.86 $ 14.20 $ 13.51 ============= ============= ============== ============== - ---------- * Redemption price per share varies by length of time shares are held. + Represents receivable from or payable to affiliates. See notes to financial statements. 134 Fifth Third Funds Statements of Assets and Liabilities July 31, 2008 - -------------------------------------------------------------------------------- LifeModel LifeModel Moderately LifeModel High Yield Moderate(SM) Conservative(SM) Conservative(SM) Bond ------------- ---------------- ---------------- ------------ Assets: Investments, at cost $ -- $ -- $ -- $ 67,692,251 Net unrealized appreciation/(depreciation) -- -- -- (4,714,053) ------------- ---------------- ---------------- ------------ Investments, at value -- -- -- 62,978,198 Investment in affiliates, at value (cost $4,246,813, $8,128,372, $164,550,846, $277,422,597, $431,370,008, $85,449,475, $53,653,608, $--, $30,021,652, $4,149,326, and $--; respectively) 420,734,803 84,285,419 50,668,486 -- ------------- ---------------- ---------------- ------------ Total Investments 420,734,803 84,285,419 50,668,486 62,978,198 ------------- ---------------- ---------------- ------------ Cash -- -- -- -- Cash collateral for futures -- -- -- -- Foreign currency, at value (cost $4,309,361, $--, $--, $--, $--, $--, $--, $--, $--, $-- and $--; respectively) -- -- -- -- Interest, dividends and other receivables 2,270+ 2,265+ 801+ 1,179,402 Receivable for investments sold -- -- -- -- Receivable for Fund shares sold 177,082 29,961 27,859 -- Receivable for variation margin on futures contracts -- -- -- -- Reclaims receivable -- -- -- -- Receivable from Advisor and affiliates 25,233 12,083 11,412 -- Prepaid expenses and other assets 14,356 10,540 10,293 18,529 ------------- ---------------- ---------------- ------------ Total Assets 420,953,744 84,340,268 50,718,851 64,176,129 ------------- ---------------- ---------------- ------------ Liabilities: Cash overdraft -- -- -- 37,709 Distributions payable -- -- -- -- Payable for investments purchased 2,268+ 2,271+ 801+ -- Payable upon return of securities loaned -- -- -- 13,409,342 Payable for Fund shares redeemed 690,538 33,520 58,311 60,608 Payable for variation margin on futures contracts -- -- -- -- Unrealized depreciation on credit default agreements -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates -- -- -- 17,350 Distribution and administrative servicing fee 46,618 19,338 10,967 274 Other 104,275 29,893 22,528 22,492 ------------- ---------------- ---------------- ------------ Total Liabilities 843,699 85,022 92,607 13,547,775 ------------- ---------------- ---------------- ------------ Net Assets: Paid-in Capital 413,470,746 82,193,723 53,159,708 56,381,974 Accumulated net investment income/(loss) 3,563,523 700,057 380,904 74,934 Accumulated net realized gain/(loss) from investment transactions, swaps, futures and foreign currency 13,710,981 2,525,522 70,754 (1,114,501) Net unrealized appreciation/(depreciation) on investments, swaps, futures and foreign currency (10,635,205) (1,164,056) (2,985,122) (4,714,053) ------------- ---------------- ---------------- ------------ Net Assets $ 420,110,045 $ 84,255,246 $ 50,626,244 $ 50,628,354 ============= ================ ================ ============ Market value of securities loaned $ -- $ -- $ -- $ 13,134,765 ============= ================ ================ ============ Net Assets: Institutional Shares $ 312,435,127 $ 43,093,099 $ 28,215,286 $ 50,153,435 Class A Shares 71,338,438 25,199,934 12,908,345 206,061 Class B Shares 32,003,221 13,891,405 7,252,850 155,276 Class C Shares 4,333,259 2,070,808 2,249,763 113,582 ------------- ---------------- ---------------- ------------ Total $ 420,110,045 $ 84,255,246 $ 50,626,244 $ 50,628,354 ============= ================ ================ ============ Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 27,323,406 4,168,157 2,854,044 5,487,097 Class A Shares 6,245,647 2,440,937 1,308,309 22,603 Class B Shares 2,815,943 1,349,912 737,613 17,004 Class C Shares 380,963 201,046 228,571 12,439 ------------- ---------------- ---------------- ------------ Total 36,765,959 8,160,052 5,128,537 5,539,143 ============= ================ ================ ============ Net Asset Value Institutional Shares $ 11.43 $ 10.34 $ 9.89 $ 9.14 ============= ================ ================ ============ Class A Shares-redemption price per share $ 11.42 $ 10.32 $ 9.87 $ 9.12 ============= ================ ================ ============ Class B Shares - offering price per share* $ 11.37 $ 10.29 $ 9.83 $ 9.13 ============= ================ ================ ============ Class C Shares - offering price per share* $ 11.37 $ 10.30 $ 9.84 $ 9.13 ============= ================ ================ ============ 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 $ 12.02 $ 10.86 $ 10.39 $ 9.60 ============= ================ ================ ============ Total Return Short Term Municipal Bond Bond Bond ------------- ---------------- ---------------- Assets: Investments, at cost $ 649,155,038 $ 246,604,573 $ 43,376,559 Net unrealized appreciation/(depreciation) (52,692,976) (3,503,477) 250,348 ------------- ---------------- ---------------- Investments, at value 596,462,062 243,101,096 43,626,907 Investment in affiliates, at value (cost $4,246,813, $8,128,372, $164,550,846, $277,422,597, $431,370,008, $85,449,475, and $53,653,608, $--, $30,021,652, $4,149,326, $--; respectively) 30,021,652 4,149,326 -- ------------- ---------------- ---------------- Total Investments 626,483,714 247,250,422 43,626,907 ------------- ---------------- ---------------- Cash 7 -- -- Cash collateral for futures 397,000 144,000 -- Foreign currency, at value (cost $4,309,361, $--, $--, $--, $--, $--, $--, $--, $--, $-- and $--; respectively) -- -- -- Interest, dividends and other receivables 3,836,475 1,586,262 539,851 Receivable for investments sold 150 115,818 -- Receivable for Fund shares sold 13,670 205,327 95,623 Receivable for variation margin on futures contracts 210,899 72,500 -- Reclaims receivable -- -- -- Receivable from Advisor and affiliates -- -- -- Prepaid expenses and other assets 34,109 11,071 6,526 ------------- ---------------- ---------------- Total Assets 630,976,024 249,385,400 44,268,907 ------------- ---------------- ---------------- Liabilities: Cash overdraft -- -- -- Distributions payable -- -- -- Payable for investments purchased 6,996,519 8,176 503,592 Payable upon return of securities loaned 37,951,578 -- -- Payable for Fund shares redeemed 363,745 136,481 8,503 Payable for variation margin on futures contracts -- -- -- Unrealized depreciation on credit default agreements 152,941 -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 294,731 105,500 8,377 Distribution and administrative servicing fee 7,703 1,655 1,076 Other 146,225 59,500 20,477 ------------- ---------------- ---------------- Total Liabilities 45,913,442 311,312 542,025 ------------- ---------------- ---------------- Net Assets: Paid-in Capital 684,445,537 273,568,338 43,306,300 Accumulated net investment income/(loss) 562,408 207,920 89,878 Accumulated net realized gain/(loss) from investment transactions, swaps, futures and foreign currency (47,491,369) (21,354,141) 80,356 Net unrealized appreciation/(depreciation) on investments, swaps, futures and foreign currency (52,453,994) (3,348,029) 250,348 ------------- ---------------- ---------------- Net Assets $ 585,062,582 $ 249,074,088 $ 43,726,882 ============= ================ ================ Market value of securities loaned $ 37,126,301 $ -- $ -- ============= ================ ================ Net Assets: Institutional Shares $ 559,547,731 $ 241,775,871 $ 41,945,666 Class A Shares 20,496,787 7,127,215 1,131,629 Class B Shares 3,490,207 NA 620,528 Class C Shares 1,527,857 171,002 29,059 ------------- ---------------- ---------------- Total $ 585,062,582 $ 249,074,088 $ 43,726,882 ============= ================ ================ Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 61,939,479 26,017,146 4,563,181 Class A Shares 2,270,067 767,417 122,517 Class B Shares 386,381 NA 67,754 Class C Shares 169,041 18,422 3,164 ------------- ---------------- ---------------- Total 64,764,968 26,802,985 4,756,616 ============= ================ ================ Net Asset Value Institutional Shares $ 9.03 $ 9.29 $ 9.19 ============= ================ ================ Class A Shares-redemption price per share $ 9.03 $ 9.29 $ 9.24 ============= ================ ================ Class B Shares - offering price per share* $ 9.03 NA $ 9.16 ============= ================ ================ Class C Shares - offering price per share* $ 9.04 $ 9.28 $ 9.18 ============= ================ ================ Maximum Sales Charge Class A Shares 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 $ 9.48 $ 9.75 $ 9.58 ============= ================ ================ See notes to financial statements. 135 Fifth Third Funds Statements of Assets and Liabilities July 31, 2008 - -------------------------------------------------------------------------------- Intermediate Ohio Michigan Municipal Municipal Municipal Bond Bond Bond ------------- ------------ ------------ Assets: Investments, at cost $ 126,181,688 $ 89,532,832 $ 41,126,406 Net unrealized appreciation 1,739,298 857,931 328,721 ------------- ------------ ------------ Investments, at value 127,920,986 90,390,763 41,455,127 Interest, dividends and other receivables 1,222,785 910,373 516,492 Receivable for investments sold 2,555,464 2,099,990 -- Prepaid expenses and other assets 11,747 19,175 9,581 ------------- ------------ ------------ Total Assets 131,710,982 93,420,301 41,981,200 ------------- ------------ ------------ Liabilities: Cash overdraft -- -- 7,596 Payable for investments purchased 993,691 339,942 379 Payable for Fund shares redeemed 77,263 14,122 -- Accrued expenses and other payables: Payable to Advisor and affiliates 53,859 45,554 11,919 Distribution and administrative servicing fee 689 4,995 866 Other 29,322 23,554 17,937 ------------- ------------ ------------ Total Liabilities 1,154,824 428,167 38,697 ------------- ------------ ------------ Net Assets: Paid-in Capital 128,517,308 91,816,107 41,909,267 Accumulated net investment income 27,184 282,487 1,613 Accumulated net realized gain/(loss) from investment transactions 272,368 35,609 (297,098) Net unrealized appreciation on investments 1,739,298 857,931 328,721 ------------- ------------ ------------ Net Assets $ 130,556,158 $ 92,992,134 $ 41,942,503 ============= ============ ============ Market value of securities loaned $ -- $ -- $ -- ============= ============ ============ Net Assets: Institutional Shares $ 128,343,266 $ 77,337,985 $ 38,691,984 Class A Shares 1,731,834 13,083,583 2,621,204 Class B Shares 357,383 2,013,445 553,220 Class C Shares 123,675 557,121 76,095 ------------- ------------ ------------ Total $ 130,556,158 $ 92,992,134 $ 41,942,503 ============= ============ ============ Shares of beneficial interest outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 12,911,360 7,752,752 3,857,665 Class A Shares 174,140 1,310,594 261,688 Class B Shares 35,970 206,753 55,254 Class C Shares 12,451 56,071 7,594 ------------- ------------ ------------ Total 13,133,921 9,326,170 4,182,201 ============= ============ ============ Net Asset Value Institutional Shares $ 9.94 $ 9.98 $ 10.03 ============= ============ ============ Class A Shares - redemption price per share $ 9.95 $ 9.98 $ 10.02 ============= ============ ============ Class B Shares - offering price per share* $ 9.94 $ 9.74 $ 10.01 ============= ============ ============ Class C Shares - offering price per share* $ 9.93 $ 9.94 $ 10.02 ============= ============ ============ Maximum Sales Charge Class A Shares 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 $ 10.45 $ 10.48 $ 10.38 ============= ============ ============ - ---------- * Redemption price per share varies by length of time shares are held. See notes to financial statements. 136 Fifth Third Funds Statements of Operations For the year ended July 31, 2008 - -------------------------------------------------------------------------------- Small Cap Mid Cap Quality Growth Growth Growth ------------- ------------ ------------ Investment Income: Interest income $ -- $ -- $ 194,046 Dividend income 255,516 1,723,795 7,118,235 Income from affiliates 145,293 428,531 383,514 Foreign tax withholding (8,440) (3,696) (3,075) Income from securities lending 32,524 95,771 125,096 Other income -- -- 1,676 ------------- ------------ ------------ Total Investment Income 424,893 2,244,401 7,819,492 ------------- ------------ ------------ Expenses: Investment advisory fees 732,808 2,520,379 4,916,538 Administration fees 180,996 544,694 1,063,649 Distribution servicing fees - Class A Shares 33,992 65,279 232,670 Distribution servicing fees - Class B Shares 10,861 52,553 130,411 Distribution servicing fees - Class C Shares 2,625 6,032 19,066 Distribution servicing fees - Advisor Shares 662 1,423 2,796 Administrative servicing fees - Class C Shares 875 2,011 6,355 Accounting fees 59,445 93,398 156,142 Registration and filing fees 47,485 79,199 81,112 Transfer and dividend disbursing agent fees 59,299 137,818 375,806 Professional fees and other expenses 58,066 134,361 209,368 ------------- ------------ ------------ Total expenses 1,187,114 3,637,147 7,193,913 ------------- ------------ ------------ Less: Waiver and/or reimbursement from Advisor and/or affiliates (81,002) (76,295) (269,508) ------------- ------------ ------------ Net Expenses 1,106,112 3,560,852 6,924,405 ------------- ------------ ------------ Net Investment Income/(Loss) (681,219) (1,316,451) 895,087 ------------- ------------ ------------ Realized and Unrealized Gains/(Losses) from Investments: Net realized gains on investments 11,149,456 34,385,207 34,541,802 Change in unrealized appreciation/depreciation on investments (20,241,491) (67,734,776) (14,991,297) ------------- ------------ ------------ Net realized and unrealized gains/(losses) on investments (9,092,035) (33,349,569) 19,550,505 ------------- ------------ ------------ Change in net assets resulting from operations $ (9,773,254) $(34,666,020) $ 20,445,592 ============= ============ ============ See notes to financial statements. 137 Fifth Third Funds Statements of Operations For the year ended July 31, 2008 - -------------------------------------------------------------------------------- Dividend Micro Cap Small Cap Growth Value Value ------------- ------------- ------------ Investment Income: Interest income $ -- $ -- $ -- Dividend income 447,822 805,598 2,119,592 Income from affiliates 11,298 84,615 105,560 Foreign tax withholding (2,745) -- (17,323) Income from securities lending 8,799 22,416 46,455 ------------- ------------- ------------ Total Investment Income 465,174 912,629 2,254,284 ------------- ------------- ------------ Expenses: Investment advisory fees 180,389 529,258 903,878 Administration fees 39,000 91,512 173,812 Distribution servicing fees - Class A Shares 8,840 28,118 4,850 Distribution servicing fees - Class B Shares 3,072 37,861 9,415 Distribution servicing fees - Class C Shares 2,327 15,941 4,180 Distribution servicing fees - Advisor Shares 20 13,927 1,332 Administrative servicing fees - Class C Shares 776 5,314 1,393 Administrative servicing fees - Select NA NA NA Administrative servicing fees - Trust NA NA NA Administrative servicing fees - Preferred NA NA NA Accounting fees 61,942 61,328 62,162 Registration and filing fees 52,964 59,498 38,813 Transfer and dividend disbursing agent fees 29,800 86,397 9,006 Professional fees and other expenses 33,800 137,829 57,789 Interest expense -- -- -- Dividends on securities sold short -- -- -- ------------- ------------- ------------ Total expenses 412,930 1,066,983 1,266,630 ------------- ------------- ------------ Less: Waiver and/or reimbursement from Advisor and/or affiliates (233,441) (251,593) (45,629) ------------- ------------- ------------ Net Expenses 179,489 815,390 1,221,001 ------------- ------------- ------------ Net Investment Income 285,685 97,239 1,033,283 ------------- ------------- ------------ Realized and Unrealized Gains/(Losses) from Investments/Options, Futures and Foreign Currency: Net realized gains/(losses) on investment, option and foreign currency transactions 130,202 1,986,947 1,352,438 Net realized gains/(losses) on futures transactions 20,295 -- -- Realized gain distributions from underlying funds -- -- -- Change in unrealized appreciation/depreciation on investments and futures (1,682,949) (11,154,974) (5,745,550) ------------- ------------- ------------ Net realized and unrealized gains/(losses) on investments and futures (1,532,452) (9,168,027) (4,393,112) ------------- ------------- ------------ Change in net assets resulting from operations $ (1,246,767) $ (9,070,788) $ (3,359,829) ============= ============= ============ - ---------- + Represents realized gains/(losses) from investment transactions with affiliates. See notes to financial statements. 138 Fifth Third Funds Statements of Operations For the year ended July 31, 2008 - -------------------------------------------------------------------------------- Disciplined Structured All Cap Large Cap Large Cap Equity Value Value Plus Index ------------- ------------- ------------- -------------- Investment Income: Interest income $ -- $ -- $ -- $ -- Dividend income 7,275,569 17,415,289 4,129,710 8,156,225 Income from affiliates 275,210 604,011 147,981 321,169 Foreign tax withholding (10) -- -- -- Income from securities lending 123,523 130,573 -- 105,195 ------------- ------------- ------------- -------------- Total Investment Income 7,674,292 18,149,873 4,277,691 8,582,589 ------------- ------------- ------------- -------------- Expenses: Investment advisory fees 2,927,978 5,026,273 1,250,884 1,196,095 Administration fees 506,255 1,087,298 309,261 689,977 Distribution servicing fees - Class A Shares 139,602 60,812 41,071 154,436 Distribution servicing fees - Class B Shares 199,176 50,420 9,167 35,950 Distribution servicing fees - Class C Shares 70,075 16,576 742 14,946 Distribution servicing fees - Advisor Shares 51,848 594 802 3,339 Administrative servicing fees - Class C Shares 23,358 5,525 247 4,982 Administrative servicing fees - Select NA NA NA 11,213 Administrative servicing fees - Trust NA NA NA 158,244 Administrative servicing fees - Preferred NA NA NA 98,238 Accounting fees 88,904 151,140 77,181 157,905 Registration and filing fees 61,973 64,720 50,576 51,749 Transfer and dividend disbursing agent fees 246,297 160,360 61,665 119,498 Professional fees and other expenses 79,757 280,276 344,617 187,900 Interest expense -- -- 184,595 -- Dividends on securities sold short -- -- 862,547 -- ------------- ------------- ------------- -------------- Total expenses 4,395,223 6,903,994 3,193,355 2,884,472 ------------- ------------- ------------- -------------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (427,281) (430,323) (450,482) (1,646,248) ------------- ------------- ------------- -------------- Net Expenses 3,967,942 6,473,671 2,742,873 1,238,224 ------------- ------------- ------------- -------------- Net Investment Income 3,706,350 11,676,202 1,534,818 7,344,365 ------------- ------------- ------------- -------------- Realized and Unrealized Gains/(Losses) from Investments/Options, Futures and Foreign Currency: Net realized gains/(losses) on investment, option and foreign currency transactions 16,380,198 13,782,753 (13,472,078) 13,028,282 Net realized gains/(losses) on futures transactions -- -- (558,529) (1,429,781) Realized gain distributions from underlying funds -- -- -- -- Change in unrealized appreciation/depreciation on investments and futures (74,072,456) (110,250,509) (8,974,769) (63,983,252) ------------- ------------- ------------- -------------- Net realized and unrealized gains/(losses) on investments and futures (57,692,258) (96,467,756) (23,005,376) (52,384,751) ------------- ------------- ------------- -------------- Change in net assets resulting from operations $ (53,985,908) $ (84,791,554) $ (21,470,558) $ (45,040,386) ============= ============= ============= ============== International Strategic LifeModel Equity Income Aggressive(SM) -------------- ------------- -------------- Investment Income: Interest income $ 11,690 $ 3,170,539 $ -- Dividend income 22,814,908 4,810,188 -- Income from affiliates 353,638 218,627 2,715,822 Foreign tax withholding (1,731,839) (11,885) -- Income from securities lending 417,685 31,571 -- -------------- ------------- -------------- Total Investment Income 21,866,082 8,219,040 2,715,822 -------------- ------------- -------------- Expenses: Investment advisory fees 4,991,488 1,319,826 284,736 Administration fees 864,826 228,427 328,503 Distribution servicing fees - Class A Shares 60,358 34,086 134,214 Distribution servicing fees - Class B Shares 25,458 12,266 162,839 Distribution servicing fees - Class C Shares 6,497 96,784 20,490 Distribution servicing fees - Advisor Shares 15,709 27,133 1,882 Administrative servicing fees - Class C Shares 2,166 32,261 6,830 Administrative servicing fees - Select NA NA NA Administrative servicing fees - Trust NA NA NA Administrative servicing fees - Preferred NA NA NA Accounting fees 142,123 68,971 66,932 Registration and filing fees 59,292 50,417 41,837 Transfer and dividend disbursing agent fees 122,619 66,893 149,399 Professional fees and other expenses 594,054 51,361 59,753 Interest expense -- -- -- Dividends on securities sold short 534 -- -- -------------- ------------- -------------- Total expenses 6,885,124 1,988,425 1,257,415 -------------- ------------- -------------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (494,238) (470,601) (779,619) -------------- ------------- -------------- Net Expenses 6,390,886 1,517,824 477,796 -------------- ------------- -------------- Net Investment Income 15,475,196 6,701,216 2,238,026 -------------- ------------- -------------- Realized and Unrealized Gains/(Losses) from Investments/Options, Futures and Foreign Currency: Net realized gains/(losses) on investment, option and foreign currency transactions 60,759,191 1,648,109 (4,227,220)+ Net realized gains/(losses) on futures transactions (6,567,479) -- -- Realized gain distributions from underlying funds -- -- 18,471,397+ Change in unrealized appreciation/depreciation on investments and futures (138,618,987) (18,166,047) (34,532,247) -------------- ------------- -------------- Net realized and unrealized gains/(losses) on investments and futures (84,427,275) (16,517,938) (20,288,070) -------------- ------------- -------------- Change in net assets resulting from operations $ (68,952,079) $ (9,816,722) $ (18,050,044) ============== ============= ============== See notes to financial statements. 139 Fifth Third Funds Statements of Operations For the year ended July 31, 2008 - -------------------------------------------------------------------------------- LifeModel LifeModel Moderately LifeModel Moderately LifeModel Aggressive(SM) Moderate(SM) Conservative(SM) Conservative(SM) -------------- ------------ ---------------- ---------------- Investment Income: Interest income $ -- $ -- $ -- $ -- Dividend income -- -- -- -- Income from affiliate 7,056,077 14,287,573 3,113,951 2,169,231 Foreign tax withholding -- -- -- -- Income from securities lending -- -- -- -- Other income -- -- -- -- -------------- ------------ ---------------- ---------------- Total Investment Income 7,056,077 14,287,573 3,113,951 2,169,231 -------------- ------------ ---------------- ---------------- Expenses: Investment advisory fees 481,555 727,621 140,871 79,916 Administration fees 555,578 839,468 162,525 92,198 Distribution servicing fees - Class A Shares 294,683 216,197 79,808 36,277 Distribution servicing fees - Class B Shares 512,926 389,783 167,757 85,546 Distribution servicing fees - Class C Shares 56,902 40,193 19,654 19,441 Distribution servicing fees - Advisor Shares 3,052 743 111 76 Administrative servicing fees - Class C Shares 18,967 13,398 6,552 6,480 Accounting fees 93,055 125,803 58,648 59,015 Registration and filing fees 50,400 43,376 38,745 37,917 Transfer and dividend disbursing agent fees 311,169 204,078 62,416 28,753 Professional fees and other expenses 53,243 129,551 37,148 34,683 -------------- ------------ ---------------- ---------------- Total expenses 2,431,530 2,730,211 774,235 480,302 -------------- ------------ ---------------- ---------------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (1,288,687) (1,682,451) (425,456) (290,058) Distribution services - Class A Shares and Class B Shares waived -- -- -- -- -------------- ------------ ---------------- ---------------- Net Expenses 1,142,843 1,047,760 348,779 190,244 -------------- ------------ ---------------- ---------------- Net Investment Income 5,913,234 13,239,813 2,765,172 1,978,987 -------------- ------------ ---------------- ---------------- Realized and Unrealized Gains/(Losses) from Investments, Swaps, Futures and Foreign Currency: Net realized gains/(losses) on investment and foreign currency transactions (2,747,279)+ (6,026,303)+ (187,557)+ (481,097)+ Net realized gains on futures transactions -- -- -- -- Realized gain distributions from underlying funds 24,039,269+ 26,088,658+ 4,027,567+ 1,169,223+ Change in unrealized appreciation/depreciation on investments, swaps, futures and foreign currency (52,255,957) (61,882,940) (11,259,892) (4,740,349) -------------- ------------ ---------------- ---------------- Net realized and unrealized gains/(losses) on investments, swaps, futures and foreign currency (30,963,967) (41,820,585) (7,419,882) (4,052,223) -------------- ------------ ---------------- ---------------- Change in net assets resulting from operations $ (25,050,733) $(28,580,772) $ (4,654,710) $ (2,073,236) ============== ============ ================ ================ - ---------- + Represents realized gains/(losses) from investment transactions with affiliates. See notes to financial statements. 140 Fifth Third Funds Statements of Operations For the year ended July 31, 2008 - -------------------------------------------------------------------------------- High Yield Total Return Short Term Municipal Bond Bond Bond Bond ----------- ------------ ------------ ----------- Investment Income: Interest income $ 4,947,264 $ 29,300,622 $ 12,172,159 $ 1,939,650 Dividend income -- 519,239 -- 11,597 Income from affiliate 40,161 332,832 181,760 -- Foreign tax withholding -- (16,314) (7,636) -- Income from securities lending 15,328 49,296 -- -- Other income -- 66,044 6,964 -- ----------- ------------ ------------ ----------- Total Investment Income 5,002,753 30,251,719 12,353,247 1,951,247 ----------- ------------ ------------ ----------- Expenses: Investment advisory fees 417,490 3,177,457 1,328,744 242,383 Administration fees 103,225 916,368 459,894 76,269 Distribution servicing fees - Class A Shares 796 48,362 22,015 3,054 Distribution servicing fees - Class B Shares 1,246 32,135 -- 7,310 Distribution servicing fees - Class C Shares 939 9,279 1,256 266 Distribution servicing fees - Advisor Shares 23 385 -- 278 Administrative servicing fees - Class C Shares 313 3,093 419 88 Accounting fees 70,235 164,831 76,090 63,552 Registration and filing fees 39,164 98,183 48,881 35,079 Transfer and dividend disbursing agent fees 8,247 119,799 75,305 15,406 Professional fees and other expenses 48,567 190,020 104,332 39,148 ----------- ------------ ------------ ----------- Total expenses 690,245 4,759,912 2,116,936 482,833 ----------- ------------ ------------ ----------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (245,795) (1,036,530) (392,819) (203,486) Distribution services - Class A Shares and Class B Shares waived -- -- -- -- ----------- ------------ ------------ ----------- Net Expenses 444,450 3,723,382 1,724,117 279,347 ----------- ------------ ------------ ----------- Net Investment Income 4,558,303 26,528,337 10,629,130 1,671,900 ----------- ------------ ------------ ----------- Realized and Unrealized Gains/(Losses) from Investments, Swaps, Futures and Foreign Currency: Net realized gains/(losses) on investment and foreign currency transactions (663,376) (17,612,216) 1,136,154 104,766 Net realized gains on futures transactions -- 2,659,320 255,815 -- Realized gain distributions from underlying funds -- -- -- -- Change in unrealized appreciation/depreciation on investments, swaps, futures and foreign currency (1,771,658) (30,127,802) (1,546,312) (507,533) ----------- ------------ ------------ ----------- Net realized and unrealized gains/(losses) on investments, swaps, futures and foreign currency (2,435,034) (45,080,698) (154,343) (402,767) ----------- ------------ ------------ ----------- Change in net assets resulting from operations $ 2,123,269 $(18,552,361) $ 10,474,787 $ 1,269,133 =========== ============ ============ =========== Intermediate Ohio Michigan Municipal Municipal Municipal Bond Bond Bond ------------ ------------ ----------- Investment Income: Interest income $ 6,064,436 $ 4,023,376 $ 1,655,827 Dividend income 17,083 36,453 9,572 Income from affiliate -- -- -- Foreign tax withholding -- -- -- Income from securities lending -- -- -- Other income -- -- -- ------------ ------------ ----------- Total Investment Income 6,081,519 4,059,829 1,665,399 ------------ ------------ ----------- Expenses: Investment advisory fees 787,124 533,758 208,249 Administration fees 247,685 167,944 80,088 Distribution servicing fees - Class A Shares 4,915 34,808 9,383 Distribution servicing fees - Class B Shares 3,663 23,289 5,671 Distribution servicing fees - Class C Shares 753 4,894 791 Distribution servicing fees - Advisor Shares -- -- -- Administrative servicing fees - Class C Shares 251 1,631 264 Accounting fees 63,530 57,205 57,009 Registration and filing fees 48,116 39,888 39,126 Transfer and dividend disbursing agent fees 13,501 13,725 5,717 Professional fees and other expenses 58,176 51,801 33,546 ------------ ------------ ----------- Total expenses 1,227,714 928,943 439,844 ------------ ------------ ----------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (290,489) (97,885) (109,240) Distribution services - Class A Shares and Class B Shares waived (2,747) -- (3,753) ------------ ------------ ----------- Net Expenses 934,478 831,058 326,851 ------------ ------------ ----------- Net Investment Income 5,147,041 3,228,771 1,338,548 ------------ ------------ ----------- Realized and Unrealized Gains/(Losses) from Investments, Swaps, Futures and Foreign Currency: Net realized gains/(losses) on investment and foreign currency transactions 310,951 39,798 50,516 Net realized gains on futures transactions -- -- -- Realized gain distributions from underlying funds -- -- -- Change in unrealized appreciation/depreciation on investments, swaps, futures and foreign currency 97,442 373,692 666,194 ------------ ------------ ----------- Net realized and unrealized gains/(losses) on investments, swaps, futures and foreign currency 408,393 413,490 716,710 ------------ ------------ ----------- Change in net assets resulting from operations $ 5,555,434 $ 3,642,261 $ 2,055,258 ============ ============ =========== See notes to financial statements. 141 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- Small Cap Growth Mid Cap Growth ------------------------------- ------------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Change in Net Assets: Operations: Net investment income/(loss) $ (681,219) $ (958,716) $ (1,316,451) $ (1,962,157) Net realized gains on investment and option transactions 11,149,456 31,785,115 34,385,207 48,398,218 Net realized gains on futures transactions -- -- -- -- Net change in unrealized appreciation/depreciation on investment and futures (20,241,491) (950,255) (67,734,776) 15,158,814 Increase from payment by the Advisor -- -- -- 179,962 -------------- -------------- -------------- -------------- Change in net assets resulting from operations (9,773,254) 29,876,144 (34,666,020) 61,774,837 -------------- -------------- -------------- -------------- 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 (33,959,747) (28,824,886) (43,019,418) (66,351,426) Class A Shares (5,435,340) (3,859,214) (4,511,911) (6,624,674) Class B Shares (451,736) (317,682) (930,995) (1,326,080) Class C Shares (153,157) (93,164) (145,930) (235,491) Advisor Shares -- (101,447) -- (156,309) -------------- -------------- -------------- -------------- Change in net assets from shareholder distributions (39,999,980) (33,196,393) (48,608,254) (74,693,980) -------------- -------------- -------------- -------------- Change in net assets from Fund share transactions (2,327,175) (12,946,804) (31,875,985) 1,409,353 -------------- -------------- -------------- -------------- Change in net assets (52,100,409) (16,267,053) (115,150,259) (11,509,790) Net Assets: Beginning of period 130,793,367 147,060,420 349,503,403 361,013,193 -------------- -------------- -------------- -------------- End of period $ 78,692,958 $ 130,793,367 $ 234,353,144 $ 349,503,403 ============== ============== ============== ============== Accumulated net investment income/(loss) $ (5,370) $ (7,768) $ 246,177 $ -- ============== ============== ============== ============== See notes to financial statements. 142 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- Quality Growth Dividend Growth ------------------------------- ------------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Change in Net Assets: Operations: Net investment income/(loss) $ 895,087 $ 3,278,293 $ 285,685 $ 520,170 Net realized gains on investment and option transactions 34,541,802 95,370,132 130,202 1,313,651 Net realized gains on futures transactions -- -- 20,295 -- Net change in unrealized appreciation/depreciation on investment and futures (14,991,297) 36,701,094 (1,682,949) 1,854,192 Increase from payment by the Advisor -- 748,501 -- 65,762 -------------- -------------- -------------- -------------- Change in net assets resulting from operations 20,445,592 136,098,020 (1,246,767) 3,753,775 -------------- -------------- -------------- -------------- Distributions to shareholders from net investment income: Institutional Shares (986,849) (2,836,719) (221,444) (412,378) Class A Shares (29,511) (377,088) (37,566) (76,234) Class B Shares -- (8,087) (2,178) (4,205) Class C Shares -- (1,356) (2,147) (4,135) Advisor Shares -- (5,211) (69) (213) Distributions from net realized gains: Institutional Shares (73,562,502) (8,983,115) -- -- Class A Shares (12,508,805) (1,649,039) -- -- Class B Shares (1,645,398) (202,006) -- -- Class C Shares (335,123) (46,784) -- -- Advisor Shares -- (35,580) -- -- -------------- -------------- -------------- -------------- Change in net assets from shareholder distributions (89,068,188) (14,144,985) (263,404) (497,165) -------------- -------------- -------------- -------------- Change in net assets from Fund share transactions (96,435,268) (228,194,908) (1,945,651) (921,162) -------------- -------------- -------------- -------------- Change in net assets (165,057,864) (106,241,873) (3,455,822) 2,335,448 Net Assets: Beginning of period 643,657,555 749,899,428 23,538,422 21,202,974 -------------- -------------- -------------- -------------- End of period $ 478,599,691 $ 643,657,555 $ 20,082,600 $ 23,538,422 ============== ============== ============== ============== Accumulated net investment income/(loss) $ (1) $ 50,207 $ 45,157 $ 23,016 ============== ============== ============== ============== Micro Cap Value Small Cap Value ------------------------------- ------------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Change in Net Assets: Operations: Net investment income/(loss) $ 97,239 $ (33,117) $ 1,033,283 $ 759,452 Net realized gains on investment and option transactions 1,986,947 18,680,011 1,352,438 12,223,175 Net realized gains on futures transactions -- -- -- -- Net change in unrealized appreciation/depreciation on investment and futures (11,154,974) (4,849,351) (5,745,550) 1,349,877 Increase from payment by the Advisor -- -- -- -- -------------- -------------- -------------- -------------- Change in net assets resulting from operations (9,070,788) 13,797,543 (3,359,829) 14,332,504 -------------- -------------- -------------- -------------- Distributions to shareholders from net investment income: Institutional Shares (63,089) (409,273) (889,871) (510,279) Class A Shares (5,157) (84,561) (16,068) (8,534) Class B Shares -- (8,097) -- (2,220) Class C Shares -- (2,506) -- (1,411) Advisor Shares -- (62,794) -- (3,248) Distributions from net realized gains: Institutional Shares (14,388,607) (14,807,475) (12,045,339) (15,396,805) Class A Shares (6,281,771) (3,754,132) (287,581) (302,648) Class B Shares (1,765,824) (1,399,143) (130,804) (154,875) Class C Shares (1,025,048) (699,227) (78,802) (97,202) Advisor Shares -- (3,728,972) -- (135,905) -------------- -------------- -------------- -------------- Change in net assets from shareholder distributions (23,529,496) (24,956,180) (13,448,465) (16,613,127) -------------- -------------- -------------- -------------- Change in net assets from Fund share transactions (9,723,760) (27,752,409) (9,599,208) (4,131,972) -------------- -------------- -------------- -------------- Change in net assets (42,324,044) (38,911,046) (26,407,502) (6,412,595) Net Assets: Beginning of period 80,318,975 119,230,021 115,770,190 122,182,785 -------------- -------------- -------------- -------------- End of period $ 37,994,931 $ 80,318,975 $ 89,362,688 $ 115,770,190 ============== ============== ============== ============== Accumulated net investment income/(loss) $ 30,996 $ -- $ 531,599 $ 433,836 ============== ============== ============== ============== See notes to financial statements. 143 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- Disciplined All Cap Value Large Cap Value ------------------------------ ------------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Change in Net Assets: Operations: Net investment income $ 3,706,350 $ 4,462,597 $ 11,676,202 $ 9,685,948 Net realized gains/(losses) on investment, and foreign currency transactions 16,380,198 43,764,398 13,782,753 49,837,685 Net realized gains/(losses) on futures transactions -- -- -- -- Net change in unrealized appreciation/depreciation on investment, futures, and foreign currency (74,072,456) 14,548,930 (110,250,509) 24,717,826 Increase from payment by the Advisor -- -- -- 96,896 ------------- ------------- ------------- ------------- Change in net assets resulting from operations (53,985,908) 62,775,925 (84,791,554) 84,338,355 ------------- ------------- ------------- ------------- Distributions to shareholders from net investment income: Institutional Shares (2,580,974) (3,577,122) (10,224,754) (9,176,075) Class A Shares (635,762) (487,371) (357,749) (333,360) Class B Shares (86,310) (121,463) (33,647) (30,168) Class C Shares (47,817) (34,918) (15,288) (11,314) Advisor Shares (72,498) (306,792) (1,192) (3,314) 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 (30,182,996) (37,807,043) (39,371,152) (83,951,662) Class A Shares (10,927,567) (6,142,386) (1,695,234) (3,384,424) Class B Shares (3,267,630) (3,664,755) (346,596) (818,793) Class C Shares (1,556,725) (913,524) (150,963) (291,921) Advisor Shares -- (5,236,445) -- (43,831) Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA ------------- ------------- ------------- ------------- Change in net assets from shareholder distributions (49,358,279) (58,291,819) (52,196,575) (98,044,862) ------------- ------------- ------------- ------------- Change in net assets from Fund share transactions 13,054,375 4,698,249 (40,555,797) 89,072,024 ------------- ------------- ------------- ------------- Change in net assets (90,289,812) 9,182,355 (177,543,926) 75,365,517 Net Assets: Beginning of period 333,080,427 323,898,072 687,996,731 612,631,214 ------------- ------------- ------------- ------------- End of period $ 242,790,615 $ 333,080,427 $ 510,452,805 $ 687,996,731 ============= ============= ============= ============= Accumulated net investment income/(loss) $ 474,171 $ 190,486 $ 1,984,946 $ 940,547 ============= ============= ============= ============= See notes to financial statements. 144 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- Structured Large Cap Plus Equity Index ------------------------------ ------------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Change in Net Assets: Operations: Net investment income $ 1,534,818 $ 2,136,525 $ 7,344,365 $ 7,383,949 Net realized gains/(losses) on investment, and foreign currency transactions (13,472,078) 26,175,821 13,028,282 20,347,897 Net realized gains/(losses) on futures transactions (558,529) 1,023,508 (1,429,781) 2,136,924 Net change in unrealized appreciation/depreciation on investment, futures, and foreign currency (8,974,769) (724,354) (63,983,252) 32,586,089 Increase from payment by the Advisor -- -- -- -- ------------- ------------- ------------- ------------- Change in net assets resulting from operations (21,470,558) 28,611,500 (45,040,386) 62,454,859 ------------- ------------- ------------- ------------- Distributions to shareholders from net investment income: Institutional Shares (1,309,150) (1,484,856) (3,419,524) (3,548,007) Class A Shares (79,171) (121,744) (974,595) (1,052,389) Class B Shares -- (733) (26,956) (34,579) Class C Shares -- (74) (15,089) (17,671) Advisor Shares -- (332) (6,714) (26,537) Select Shares NA NA (242,811) (316,520) Preferred Shares NA NA (1,084,340) (1,143,158) Trust Shares NA NA (978,975) (1,095,858) Distributions from net realized gains: Institutional Shares (856,424) (679,080) -- -- Class A Shares (93,043) (74,897) -- -- Class B Shares (5,094) (3,687) -- -- Class C Shares (525) (364) -- -- Advisor Shares -- (86) -- -- Select Shares NA NA -- -- Preferred Shares NA NA -- -- Trust Shares NA NA -- -- ------------- ------------- ------------- ------------- Change in net assets from shareholder distributions (2,343,407) (2,365,853) (6,749,004) (7,234,719) ------------- ------------- ------------- ------------- Change in net assets from Fund share transactions (30,109,974) (14,015,622) (19,736,578) (39,858,523) ------------- ------------- ------------- ------------- Change in net assets (53,923,939) 12,230,025 (71,525,968) 15,361,617 Net Assets: Beginning of period 200,732,585 188,502,560 423,031,552 407,669,935 ------------- ------------- ------------- ------------- End of period $ 146,808,646 $ 200,732,585 $ 351,505,584 $ 423,031,552 ============= ============= ============= ============= Accumulated net investment income/(loss) $ 734,778 $ 599,045 $ 1,085,044 $ 581,901 ============= ============= ============= ============= International Equity Strategic Income ------------------------------ ------------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Change in Net Assets: Operations: Net investment income $ 15,475,196 $ 6,269,734 $ 6,701,216 $ 7,298,467 Net realized gains/(losses) on investment, and foreign currency transactions 60,759,191 43,926,186 1,648,109 1,943,371 Net realized gains/(losses) on futures transactions (6,567,479) 3,024,220 -- -- Net change in unrealized appreciation/depreciation on investment, futures, and foreign currency (138,618,987) 55,245,318 (18,166,047) (1,791,447) Increase from payment by the Advisor -- 133,673 -- -- ------------- ------------- ------------- ------------- Change in net assets resulting from operations (68,952,079) 108,599,131 (9,816,722) 7,450,391 ------------- ------------- ------------- ------------- Distributions to shareholders from net investment income: Institutional Shares (14,619,372) (3,673,902) (5,673,906) (5,548,644) Class A Shares (856,639) (207,957) (794,429) (216,474) Class B Shares (58,009) (10,848) (58,570) (65,273) Class C Shares (18,544) (4,732) (619,788) (701,647) Advisor Shares -- (63,954) (244,710) (851,612) 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 (29,176,707) (8,232,074) (3,176,817) (1,091,194) Class A Shares (1,897,616) (541,904) (620,947) (42,722) Class B Shares (173,109) (44,609) (38,921) (16,681) Class C Shares (55,581) (20,357) (404,863) (179,985) Advisor Shares -- (191,144) -- (195,089) Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA ------------- ------------- ------------- ------------- Change in net assets from shareholder distributions (46,855,577) (12,991,481) (11,632,951) (8,909,321) ------------- ------------- ------------- ------------- Change in net assets from Fund share transactions 55,866,818 (66,740,905) (18,073,057) 3,101,095 ------------- ------------- ------------- ------------- Change in net assets (59,940,838) 28,866,745 (39,522,730) 1,642,165 Net Assets: Beginning of period 503,992,546 475,125,801 155,688,320 154,046,155 ------------- ------------- ------------- ------------- End of period $ 444,051,708 $ 503,992,546 $ 116,165,590 $ 155,688,320 ============= ============= ============= ============= Accumulated net investment income/(loss) $ 7,073,147 $ 8,389,512 $ (716,566) $ (95,781) ============= ============= ============= ============= See notes to financial statements. 145 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- LifeModel LifeModel Aggressive(SM) Moderately Aggressive(SM) ------------------------------ ------------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Change in Net Assets: Operations: Net investment income $ 2,238,026 $ 1,330,931 $ 5,913,234 $ 4,830,168 Net realized gains/(losses) on investment transactions (4,227,220)+ 537,578+ (2,747,279)+ 3,573,348+ Realized gain distributions from underlying funds 18,471,397+ 14,140,124+ 24,039,269+ 20,709,745+ Net change in unrealized appreciation/depreciation on investments (34,532,247) 14,305,489 (52,255,957) 18,609,617 ------------- ------------- ------------- ------------- Change in net assets resulting from operations (18,050,044) 30,314,122 (25,050,733) 47,722,878 ------------- ------------- ------------- ------------- Distributions to shareholders from net investment income: Institutional Shares (3,783,500) (869,582) (4,509,630) (2,531,973) Class A Shares (1,680,334) (318,268) (3,524,519) (1,911,642) Class B Shares (411,221) (30,098) (1,300,458) (409,881) Class C Shares (69,660) (5,163) (195,768) (65,919) Advisor Shares -- (4,048) (5,068) (22,630) Distributions from net realized gains: Institutional Shares (8,295,757) (2,955,413) (10,423,566) (3,622,789) Class A Shares (4,002,116) (1,460,321) (8,979,268) (3,243,447) Class B Shares (1,226,345) (497,605) (3,903,239) (1,409,226) Class C Shares (204,489) (78,485) (591,434) (227,990) Advisor Shares -- (26,126) -- (45,549) ------------- ------------- ------------- ------------- Change in net assets from shareholder distributions (19,673,422) (6,245,109) (33,432,950) (13,491,046) ------------- ------------- ------------- ------------- Change in net assets from Fund share transactions 6,391,352 3,367,814 (726,476) (18,845,143) ------------- ------------- ------------- ------------- Change in net assets (31,332,114) 27,436,827 (59,210,159) 15,386,689 Net Assets: Beginning of period 199,590,213 172,153,386 342,454,485 327,067,796 ------------- ------------- ------------- ------------- End of period $ 168,258,099 $ 199,590,213 $ 283,244,326 $ 342,454,485 ============= ============= ============= ============= Accumulated net investment income/(loss) $ 524,464 $ 1,211,087 $ 2,112,567 $ 1,835,251 ============= ============= ============= ============= - ---------- + Represents realized gains/(losses) from investment transactions with affiliates. See notes to financial statements. 146 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- LifeModel LifeModel Moderate(SM) Moderately Conservative(SM) ------------------------------ ------------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Change in Net Assets: Operations: Net investment income $ 13,239,813 $ 12,474,849 $ 2,765,172 $ 2,689,068 Net realized gains/(losses) on investment transactions (6,026,303)+ 6,017,287+ (187,557)+ 1,713,854+ Realized gain distributions from underlying funds 26,088,658+ 23,818,817+ 4,027,567+ 3,988,943+ Net change in unrealized appreciation/depreciation on investments (61,882,940) 20,732,210 (11,259,892) 2,577,426 ------------- ------------- ------------- ------------- Change in net assets resulting from operations (28,580,772) 63,043,163 (4,654,710) 10,969,291 ------------- ------------- ------------- ------------- Distributions to shareholders from net investment income: Institutional Shares (12,600,615) (9,594,733) (1,585,793) (1,282,492) Class A Shares (2,899,679) (2,218,057) (1,110,928) (998,689) Class B Shares (997,130) (677,732) (448,916) (386,763) Class C Shares (138,359) (96,295) (69,482) (59,483) Advisor Shares (2,191) (9,396) (427) (1,621) Distributions from net realized gains: Institutional Shares (20,515,914) (8,746,834) (2,364,527) (1,187,658) Class A Shares (5,226,919) (2,291,027) (1,864,924) (1,034,738) Class B Shares (2,353,782) (1,031,609) (992,900) (557,096) Class C Shares (326,437) (146,415) (154,214) (87,821) Advisor Shares -- (10,750) -- (1,777) ------------- ------------- ------------- ------------- Change in net assets from shareholder distributions (45,061,026) (24,822,848) (8,592,111) (5,598,138) ------------- ------------- ------------- ------------- Change in net assets from Fund share transactions (18,448,288) (46,663,141) (1,172,289) (10,465,909) ------------- ------------- ------------- ------------- Change in net assets (92,090,086) (8,442,826) (14,419,110) (5,094,756) Net Assets: Beginning of period 512,200,131 520,642,957 98,674,356 103,769,112 ------------- ------------- ------------- ------------- End of period $ 420,110,045 $ 512,200,131 $ 84,255,246 $ 98,674,356 ============= ============= ============= ============= Accumulated net investment income/(loss) $ 3,563,523 $ 2,712,831 $ 700,057 $ 498,544 ============= ============= ============= ============= LifeModel Conservative(SM) High Yield Bond ------------------------------ ------------------------------ Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Change in Net Assets: Operations: Net investment income $ 1,978,987 $ 1,832,505 $ 4,558,303 $ 4,664,937 Net realized gains/(losses) on investment transactions (481,097)+ 345,687+ (663,376) (451,025) Realized gain distributions from underlying funds 1,169,223+ 1,100,198+ -- -- Net change in unrealized appreciation/depreciation on investments (4,740,349) 1,103,773 (1,771,658) (938,554) ------------- ------------- ------------- ------------- Change in net assets resulting from operations (2,073,236) 4,382,163 2,123,269 3,275,358 ------------- ------------- ------------- ------------- Distributions to shareholders from net investment income: Institutional Shares (1,120,483) (942,214) (4,492,490) (4,609,852) Class A Shares (539,011) (545,964) (24,449) (12,961) Class B Shares (262,530) (276,669) (8,415) (7,741) Class C Shares (79,687) (89,559) (8,177) (5,066) Advisor Shares (386) (1,516) (347) (733) Distributions from net realized gains: Institutional Shares (748,020) (509,013) -- (212,690) Class A Shares (393,285) (314,648) -- (564) Class B Shares (245,318) (206,588) -- (350) Class C Shares (73,460) (67,298) -- (193) Advisor Shares -- (935) -- (34) ------------- ------------- ------------- ------------- Change in net assets from shareholder distributions (3,462,180) (2,954,404) (4,533,878) (4,850,184) ------------- ------------- ------------- ------------- Change in net assets from Fund share transactions 4,128,475 (3,986,340) (15,626,247) 3,818,475 ------------- ------------- ------------- ------------- Change in net assets (1,406,941) (2,558,581) (18,036,856) 2,243,649 Net Assets: Beginning of period 52,033,185 54,591,766 68,665,210 66,421,561 ------------- ------------- ------------- ------------- End of period $ 50,626,244 $ 52,033,185 $ 50,628,354 $ 68,665,210 ============= ============= ============= ============= Accumulated net investment income/(loss) $ 380,904 $ 225,838 $ 74,934 $ 50,423 ============= ============= ============= ============= See notes to financial statements. 147 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- Total Return Bond Short Term Bond --------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Change in Net Assets: Operations: Net investment income $ 26,528,337 $ 12,591,353 $ 10,629,130 $ 10,491,667 Net realized gains/(losses) on investment and foreign currency transactions (17,612,216) 1,238,558 1,136,154 (537,549) Net realized gains/(losses) on futures transactions 2,659,320 (69,567) 255,815 -- Net change in unrealized appreciation/depreciation on investments, swaps, futures and foreign currency (30,127,802) (566,211) (1,546,312) 2,844,759 Increase from payment by the Advisor -- 124,462 -- -- ------------ ------------ ------------ ------------ Change in net assets resulting from operations (18,552,361) 13,318,595 10,474,787 12,798,877 ------------ ------------ ------------ ------------ Distributions to shareholders from net investment income: Institutional Shares (25,360,147) (12,367,710) (10,362,660) (10,427,392) Class A Shares (922,989) (450,582) (334,432) (413,016) Class B Shares (131,997) (91,051) NA NA Class C Shares (49,925) (9,599) (5,308) (5,770) Advisor Shares (3,634) (9,583) -- (71) Distributions to shareholders from paid-in capital (tax return of capital): Institutional Shares -- -- -- (224,278) Class A Shares -- -- -- (9,513) Class B Shares -- -- NA NA Class C Shares -- -- -- (165) Advisor Shares -- -- -- -- Distributions from net realized gains: Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class B Shares -- -- NA NA Class C Shares -- -- -- -- Advisor Shares -- -- -- -- ------------ ------------ ------------ ------------ Change in net assets from shareholder distributions (26,468,692) (12,928,525) (10,702,400) (11,080,205) ------------ ------------ ------------ ------------ Change in net assets from Fund share transactions 389,099,037 (26,437,149) (27,910,267) 4,500,453 ------------ ------------ ------------ ------------ Change in net assets 344,077,984 (26,047,079) (28,137,880) 6,219,125 Net Assets: Beginning of period 240,984,598 267,031,677 277,211,968 270,992,843 ------------ ------------ ------------ ------------ End of period $585,062,582 $240,984,598 $249,074,088 $277,211,968 ============ ============ ============ ============ Accumulated net investment income/(loss) $ 562,408 $ 83,477 $ 207,920 $ (2,296) ============ ============ ============ ============ See notes to financial statements. 148 Fifth Third Funds Statements of Changes in Net Assets - -------------------------------------------------------------------------------- Intermediate Municipal Bond Municipal Bond ------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ----------- ----------- ------------ ------------ Change in Net Assets: Operations: Net investment income $ 1,671,900 $ 1,627,850 $ 5,147,041 $ 5,747,792 Net realized gains/(losses) on investment and foreign currency transactions 104,766 259,291 310,951 844,549 Net realized gains/(losses) on futures transactions -- -- -- -- Net change in unrealized appreciation/depreciation on investments, swaps, futures and foreign currency (507,533) (281,781) 97,442 (900,898) Increase from payment by the Advisor -- 90,858 -- -- ----------- ----------- ------------ ------------ Change in net assets resulting from operations 1,269,133 1,696,218 5,555,434 5,691,443 ----------- ----------- ------------ ------------ Distributions to shareholders from net investment income: Institutional Shares (1,596,302) (1,556,226) (5,027,945) (5,651,880) Class A Shares (43,053) (47,917) (65,029) (77,019) Class B Shares (20,128) (27,999) (11,924) (3,808) Class C Shares (1,028) (1,156) (2,723) (2,247) Advisor Shares (2,299) (4,854) -- (58) Distributions to shareholders from paid-in capital (tax return of capital): Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class B Shares -- -- -- -- Class C Shares -- -- -- -- Advisor Shares -- -- -- -- Distributions from net realized gains: Institutional Shares (138,279) (419,055) (383,431) (483,765) Class A Shares (4,009) (14,111) (5,481) (7,190) Class B Shares (2,289) (10,633) (971) (1,371) Class C Shares (141) (209) (258) (249) Advisor Shares -- (1,827) -- (8) ----------- ----------- ------------ ------------ Change in net assets from shareholder distributions (1,807,528) (2,083,987) (5,497,762) (6,227,595) ----------- ----------- ------------ ------------ Change in net assets from Fund share transactions (2,279,399) 4,763,910 (21,014,365) (15,585,411) ----------- ----------- ------------ ------------ Change in net assets (2,817,794) 4,376,141 (20,956,693) (16,121,563) Net Assets: Beginning of period 46,544,676 42,168,535 151,512,851 167,634,414 ----------- ----------- ------------ ------------ End of period $43,726,882 $46,544,676 $130,556,158 $151,512,851 =========== =========== ============ ============ Accumulated net investment income/(loss) $ 89,878 $ 85,389 $ 27,184 $ 6,879 =========== =========== ============ ============ Ohio Michigan Municipal Bond Municipal Bond --------------------------- ------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ------------ ----------- ----------- Change in Net Assets: Operations: Net investment income $ 3,228,771 $ 3,724,891 $ 1,338,548 $ 1,548,171 Net realized gains/(losses) on investment and foreign currency transactions 39,798 521,345 50,516 (66,883) Net realized gains/(losses) on futures transactions -- -- -- -- Net change in unrealized appreciation/depreciation on investments, swaps, futures and foreign currency 373,692 (817,563) 666,194 167,130 Increase from payment by the Advisor -- 134,906 -- -- ------------ ------------ ----------- ----------- Change in net assets resulting from operations 3,642,261 3,563,579 2,055,258 1,648,418 ------------ ------------ ----------- ----------- Distributions to shareholders from net investment income: Institutional Shares (2,702,156) (2,913,543) (1,218,526) (1,404,825) Class A Shares (435,904) (675,791) (100,878) (136,176) Class B Shares (58,629) (80,433) (11,281) (12,180) Class C Shares (15,917) (25,127) (2,061) (3,508) Advisor Shares -- (57) -- (48) Distributions to shareholders from paid-in capital (tax return of capital): Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class B Shares -- -- -- -- Class C Shares -- -- -- -- Advisor Shares -- -- -- -- Distributions from net realized gains: Institutional Shares (324,279) (84,349) -- -- Class A Shares (54,564) (21,948) -- -- Class B Shares (9,604) (3,291) -- -- Class C Shares (2,586) (1,011) -- -- Advisor Shares -- (3) -- -- ------------ ------------ ----------- ----------- Change in net assets from shareholder distributions (3,603,639) (3,805,553) (1,332,746) (1,556,737) ------------ ------------ ----------- ----------- Change in net assets from Fund share transactions (7,694,114) (12,503,836) (7,909,267) (7,166,187) ------------ ------------ ----------- ----------- Change in net assets (7,655,492) (12,745,810) (7,186,755) (7,074,506) Net Assets: Beginning of period 100,647,626 113,393,436 49,129,258 56,203,764 ------------ ------------ ----------- ----------- End of period $ 92,992,134 $100,647,626 $41,942,503 $49,129,258 ============ ============ =========== =========== Accumulated net investment income/(loss) $ 282,487 $ 234,745 $ 1,613 $ (1,904) ============ ============ =========== =========== See notes to financial statements. 149 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Small Cap Growth Mid Cap Growth ----------------------------- ----------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Capital Transactions: Institutional Shares Shares issued $ 18,351,493 $ 17,552,948 $ 26,012,871 $ 40,250,401 Shares issued in connection with acquisition -- -- 9,065,539~ -- Dividends reinvested 33,829,024 28,550,838 42,839,455 66,135,860 Shares redeemed (55,968,785) (57,730,073) (107,998,188) (100,373,690) ------------- ------------- ------------- ------------- Total Institutional Shares (3,788,268) (11,626,287) (30,080,323) 6,012,571 ------------- ------------- ------------- ------------- Class A Shares Shares issued 549,712 2,120,194 2,412,496 1,292,476 Shares issued in connection with acquistion -- -- 1,816,718~ -- Shares issued in conversion from Advisor Class @ 340,223 -- 2,477,345 -- Dividends reinvested 5,302,771 3,793,080 4,385,458 6,388,469 Shares redeemed (4,524,347) (7,035,076) (12,389,580) (11,595,939) ------------- ------------- ------------- ------------- Total Class A Shares 1,668,359 (1,121,802) (1,297,563) (3,914,994) ------------- ------------- ------------- ------------- Class B Shares Shares issued 3,630 29,585 7,578 94,097 Shares issued in connection with acquistion -- -- 675,360~ -- Dividends reinvested 436,500 304,615 890,447 1,245,390 Shares redeemed (279,380) (363,716) (1,526,052) (1,775,831) ------------- ------------- ------------- ------------- Total Class B Shares 160,750 (29,516) 47,333 (436,344) ------------- ------------- ------------- ------------- Class C Shares Shares issued 15,275 33,903 66,627 79,010 Shares issued in connection with acquistion -- -- 156,826~ -- Dividends reinvested 145,603 89,145 136,279 228,555 Shares redeemed (115,621) (58,394) (204,003) (548,531) ------------- ------------- ------------- ------------- Total Class C Shares 45,257 64,654 155,729 (240,966) ------------- ------------- ------------- ------------- Advisor Shares @ Shares issued 12,829 5,107 381,515 67,468 Shares issued in connection with acquistion -- -- 1,479,482~ -- Dividends reinvested -- 97,666 -- 146,288 Shares redeemed (426,102) (336,626) (2,562,158) (224,670) ------------- ------------- ------------- ------------- Total Advisor Shares (413,273) (233,853) (701,161) (10,914) ------------- ------------- ------------- ------------- Change from capital transactions $ (2,327,175) $ (12,946,804) $ (31,875,985) $ 1,409,353 ============= ============= ============= ============= - ---------- * Shares acquired February 22, 2008 from Balanced Fund. See Note 1. ~ Shares acquired November 16, 2007 from Technology Fund. See Note 1. @ Advisor Shares merged into Class A Shares on November 26, 2007. See Note 1. See notes to financial statements. 150 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Quality Growth Dividend Growth ----------------------------- ----------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Capital Transactions: Institutional Shares Shares issued $ 40,540,736 $ 31,611,068 $ 4,569,462 $ 9,365,905 Shares issued in connection with acquisition 11,574,529* -- -- -- Dividends reinvested 74,027,252 9,949,366 54,887 126,384 Shares redeemed (232,457,281) (223,621,470) (5,685,681) (8,981,013) ------------------------------ ------------- ------------- Total Institutional Shares (106,314,764) (182,061,036) (1,061,332) 511,276 ------------------------------ ------------- ------------- Class A Shares Shares issued 2,687,367 1,574,406 106,632 247,917 Shares issued in connection with acquistion 17,415,058* -- -- -- Shares issued in conversion from Advisor Class @ 1,716,200 -- 12,276 -- Dividends reinvested 11,361,475 1,864,612 35,470 73,439 Shares redeemed (26,576,497) (43,604,110) (791,239) (1,622,397) ------------------------------ ------------- ------------- Total Class A Shares 6,603,603 (40,165,092) (636,861) (1,301,041) ------------------------------ ------------- ------------- Class B Shares Shares issued 156,529 124,998 5,135 58,942 Shares issued in connection with acquistion 5,332,543* -- -- -- Dividends reinvested 1,602,919 206,299 1,754 3,560 Shares redeemed (2,965,588) (4,286,444) (134,198) (110,410) ------------------------------ ------------- ------------- Total Class B Shares 4,126,403 (3,955,147) (127,309) (47,908) ------------------------------ ------------- ------------- Class C Shares Shares issued 107,557 75,493 1,858 19,808 Shares issued in connection with acquistion 1,010,925* -- -- -- Dividends reinvested 329,184 47,159 1,667 3,428 Shares redeemed (650,609) (1,510,454) (111,450) (103,891) ------------------------------ ------------- ------------- Total Class C Shares 797,057 (1,387,802) (107,925) (80,655) ------------------------------ ------------- ------------- Advisor Shares @ Shares issued 188,281 395,882 -- 2 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested -- 32,432 52 169 Shares redeemed (1,835,848) (1,054,145) (12,276) (3,005) ------------------------------ ------------- ------------- Total Advisor Shares (1,647,567) (625,831) (12,224) (2,834) ------------------------------ ------------- ------------- Change from capital transactions $ (96,435,268) $(228,194,908) $ (1,945,651) $ (921,162) ============================== ============= ============= Micro Cap Value Small Cap Value ----------------------------- ----------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Capital Transactions: Institutional Shares Shares issued $ 6,066,051 $ 6,467,923 $ 26,579,330 $ 18,879,208 Shares issued in connection with acquisition -- -- -- -- Dividends reinvested 14,340,480 14,684,836 12,679,817 15,350,809 Shares redeemed (29,004,091) (35,811,649) (47,594,887) (37,711,569) ------------- ------------- ------------- ------------- Total Institutional Shares (8,597,560) (14,658,890) (8,335,740) (3,481,552) ------------- ------------- ------------- ------------- Class A Shares Shares issued 2,244,932 2,105,315 301,793 287,560 Shares issued in connection with acquistion -- -- -- -- Shares issued in conversion from Advisor Class @ 7,212,083 -- 607,582 -- Dividends reinvested 5,254,257 3,541,744 261,145 259,321 Shares redeemed (8,048,233) (10,249,425) (1,306,456) (727,534) ------------- ------------- ------------- ------------- Total Class A Shares 6,663,039 (4,602,366) (135,936) (180,653) ------------- ------------- ------------- ------------- Class B Shares Shares issued 12,049 108,130 4,339 66,754 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested 1,658,928 1,322,564 110,053 112,855 Shares redeemed (1,314,436) (1,651,994) (195,184) (262,809) ------------- ------------- ------------- ------------- Total Class B Shares 356,541 (221,300) (80,792) (83,200) ------------- ------------- ------------- ------------- Class C Shares Shares issued 410,289 976,858 29,724 76,091 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested 799,698 597,148 68,484 85,685 Shares redeemed (935,561) (3,651,710) (308,994) (269,137) ------------- ------------- ------------- ------------- Total Class C Shares 274,426 (2,077,704) (210,786) (107,361) ------------- ------------- ------------- ------------- Advisor Shares @ Shares issued 140,108 607,556 6,367 43,411 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested -- 3,508,359 -- 119,477 Shares redeemed (8,560,314) (10,308,064) (842,321) (442,094) ------------- ------------- ------------- ------------- Total Advisor Shares (8,420,206) (6,192,149) (835,954) (279,206) ------------- ------------- ------------- ------------- Change from capital transactions $ (9,723,760) $ (27,752,409) $ (9,599,208) $ (4,131,972) ============= ============= ============= ============= See notes to financial statements. 151 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Small Cap Growth Mid Cap Growth ----------------------- ----------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Share Transactions: Institutional Shares Shares issued 2,224,928 1,292,571 1,922,486 2,506,523 Shares issued in connection with acquistion -- -- 589,027~ -- Dividends reinvested 3,689,098 2,340,233 3,093,101 4,477,764 Shares redeemed (6,044,587) (4,235,153) (8,179,685) (6,253,257) ---------- ---------- ---------- ---------- Total Institutional Shares (130,561) (602,349) (2,575,071) 731,030 ---------- ---------- ---------- ---------- Class A Shares Shares issued 59,687 167,412 133,865 82,965 Shares issued in connection with acquistion -- -- 121,948~ -- Shares issued in conversion from Advisor Class @ 27,415 -- 171,206 -- Dividends reinvested 618,760 324,195 328,745 445,811 Shares redeemed (533,471) (545,708) (907,634) (744,405) ---------- ---------- ---------- ---------- Total Class A Shares 172,391 (54,101) (151,870) (215,629) ---------- ---------- ---------- ---------- Class B Shares Shares issued 440 2,337 389 6,297 Shares issued in connection with acquistion -- -- 48,285~ -- Dividends reinvested 55,253 27,246 71,637 91,911 Shares redeemed (33,934) (28,696) (127,139) (119,035) ---------- ---------- ---------- ---------- Total Class B Shares 21,759 887 (6,828) (20,827) ---------- ---------- ---------- ---------- Class C Shares Shares issued 1,858 2,593 5,665 5,572 Shares issued in connection with acquistion -- -- 11,743~ -- Dividends reinvested 18,407 7,959 11,708 17,676 Shares redeemed (15,732) (4,759) (17,421) (39,559) ---------- ---------- ---------- ---------- Total Class C Shares 4,533 5,793 11,695 (16,311) ---------- ---------- ---------- ---------- Advisor Shares @ Shares issued 1,021 334 25,997 4,379 Shares issued in connection with acquistion -- -- 100,989~ -- Dividends reinvested -- 8,355 -- 10,360 Shares redeemed (33,998) (24,860) (178,278) (14,290) ---------- ---------- ---------- ---------- Total Advisor Shares (32,977) (16,171) (51,292) 449 ---------- ---------- ---------- ---------- Change from capital transactions 35,145 (665,941) (2,773,366) 478,712 ========== ========== ========== ========== - ---------- * Shares acquired February 22, 2008 from Balanced Fund. See Note 1. ~ Shares acquired November 16, 2007 from Technology Fund. See Note 1. @ Advisor Shares merged into Class A Shares on November 26, 2007. See Note 1. See notes to financial statements. 152 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Quality Growth Dividend Growth ------------------------- ------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ----------- ----------- -------- -------- Share Transactions: Institutional Shares Shares issued 2,239,699 1,832,376 177,404 403,705 Shares issued in connection with acquistion 710,146* -- -- -- Dividends reinvested 4,062,751 573,875 2,067 5,210 Shares redeemed (13,513,980) (12,831,507) (222,940) (367,016) ----------- ----------- -------- -------- Total Institutional Shares (6,501,384) (10,425,256) (43,469) 41,899 ----------- ----------- -------- -------- Class A Shares Shares issued 154,719 91,875 4,210 10,204 Shares issued in connection with acquistion 1,096,929* -- -- -- Shares issued in conversion from Advisor Class @ 89,853 487 Dividends reinvested 640,172 110,013 1,348 3,074 Shares redeemed (1,523,617) (2,561,574) (30,992) (67,195) ----------- ----------- -------- -------- Total Class A Shares 458,056 (2,359,686) (24,947) (53,917) ----------- ----------- -------- -------- Class B Shares Shares issued 9,329 7,624 207 2,522 Shares issued in connection with acquistion 355,892* -- -- -- Dividends reinvested 95,526 12,703 68 154 Shares redeemed (183,836) (264,049) (5,510) (4,721) ----------- ----------- -------- -------- Total Class B Shares 276,911 (243,722) (5,235) (2,045) ----------- ----------- -------- -------- Class C Shares Shares issued 6,897 4,753 79 911 Shares issued in connection with acquistion 69,597* -- -- -- Dividends reinvested 20,232 2,980 67 152 Shares redeemed (41,209) (95,450) (4,781) (4,574) ----------- ----------- -------- -------- Total Class C Shares 55,517 (87,717) (4,635) (3,511) ----------- ----------- -------- -------- Advisor Shares @ Shares issued 9,314 24,964 -- -- Shares issued in connection with acquistion -- -- -- -- Dividends reinvested -- 1,935 2 7 Shares redeemed (97,307) (62,452) (489) (120) ----------- ----------- -------- -------- Total Advisor Shares (87,993) (35,553) (487) (113) ----------- ----------- -------- -------- Change from capital transactions (5,798,893) (13,151,934) (78,773) (17,687) =========== =========== ======== ======== Micro Cap Value Small Cap Value ----------------------- ----------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Share Transactions: Institutional Shares Shares issued 1,337,937 858,864 1,597,844 895,117 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested 3,668,554 2,153,627 728,695 753,368 Shares redeemed (6,304,922) (4,744,080) (2,714,594) (1,762,829) ---------- ---------- ---------- ---------- Total Institutional Shares (1,298,431) (1,731,589) (388,055) (114,344) ---------- ---------- ---------- ---------- Class A Shares Shares issued 500,792 297,220 17,466 13,615 Shares issued in connection with acquistion -- -- -- -- Shares issued in conversion from Advisor Class @ 1,208,054 -- 32,491 -- Dividends reinvested 1,447,533 540,626 15,198 12,842 Shares redeemed (1,838,902) (1,409,466) (74,668) (34,441) ---------- ---------- ---------- ---------- Total Class A Shares 1,317,477 (571,620) (9,513) (7,984) ---------- ---------- ---------- ---------- Class B Shares Shares issued 3,994 15,769 299 3,236 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested 501,186 212,247 6,694 5,782 Shares redeemed (340,190) (237,169) (12,283) (12,456) ---------- ---------- ---------- ---------- Total Class B Shares 164,990 (9,153) (5,290) (3,438) ---------- ---------- ---------- ---------- Class C Shares Shares issued 117,306 144,832 1,806 3,659 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested 241,601 95,795 4,176 4,401 Shares redeemed (252,716) (481,078) (19,033) (12,785) ---------- ---------- ---------- ---------- Total Class C Shares 106,191 (240,451) (13,051) (4,725) ---------- ---------- ---------- ---------- Advisor Shares @ Shares issued 21,671 83,979 319 2,078 Shares issued in connection with acquistion -- -- -- -- Dividends reinvested -- 543,274 -- 5,984 Shares redeemed (1,435,231) (1,456,794) (44,745) (21,258) ---------- ---------- ---------- ---------- Total Advisor Shares (1,413,560) (829,541) (44,426) (13,196) ---------- ---------- ---------- ---------- Change from capital transactions (1,123,333) (3,382,354) (460,335) (143,687) ========== ========== ========== ========== See notes to financial statements. 153 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Disciplined All Cap Value Large Cap Value --------------------------- ----------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ------------ ------------- ------------- Capital Transactions: Institutional Shares Shares issued $ 54,056,402 $ 40,510,028 $ 144,979,786 $ 152,582,434 Dividends reinvested 31,374,511 38,232,651 43,348,231 84,554,208 Shares redeemed (75,018,207) (85,610,125) (220,635,610) (156,187,029) ------------ ------------ ------------- ------------- Total Institutional Shares 10,412,706 (6,867,446) (32,307,593) 80,949,613 ------------ ------------ ------------- ------------- Class A Shares Shares issued 18,824,047 12,552,089 6,003,641 14,523,995 Shares issued in conversion from Advisor Class @ 29,310,119 -- 310,464 -- Dividends reinvested 9,627,571 5,675,246 1,751,053 3,225,559 Shares redeemed (27,523,714) (12,340,817) (14,854,391) (10,380,042) ------------ ------------ ------------- ------------- Total Class A Shares 30,238,023 5,886,518 (6,789,233) 7,369,512 ------------ ------------ ------------- ------------- Class B Shares Shares issued 227,256 1,731,692 83,847 684,831 Dividends reinvested 3,104,922 3,517,456 312,285 697,579 Shares redeemed (4,672,578) (2,947,164) (1,216,232) (1,211,672) ------------ ------------ ------------- ------------- Total Class B Shares (1,340,400) 2,301,984 (820,100) 170,738 ------------ ------------ ------------- ------------- Class C Shares Shares issued 6,212,110 4,727,963 387,669 735,313 Dividends reinvested 702,368 564,141 107,176 245,778 Shares redeemed (2,891,566) (1,472,122) (781,046) (631,116) ------------ ------------ ------------- ------------- Total Class C Shares 4,022,912 3,819,982 (286,201) 349,976 ------------ ------------ ------------- ------------- Advisor Shares @ Shares issued 569,796 2,036,000 1,410 205,985 Dividends reinvested 69,066 5,367,971 954 35,079 Shares redeemed (30,917,728) (7,846,760) (355,034) (8,879) ------------ ------------ ------------- ------------- Total Advisor Shares (30,278,866) (442,789) (352,670) 232,185 ------------ ------------ ------------- ------------- 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 $ 13,054,375 $ 4,698,249 $ (40,555,797) $ 89,072,024 ============ ============ ============= ============= - ---------- @ Advisor Shares merged into Class A Shares on November 26, 2007. See Note 1. See notes to financial statements. 154 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Structured Large Cap Plus Equity Index --------------------------- ----------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ------------ ------------- ------------- Capital Transactions: Institutional Shares Shares issued $ 9,364,536 $ 32,727,844 $ 59,212,272 $ 71,765,032 Dividends reinvested 1,897,645 766,315 3,073,842 2,966,822 Shares redeemed (36,455,733) (43,437,005) (61,716,059) (90,566,479) ------------ ------------ ------------- ------------- Total Institutional Shares (25,193,552) (9,942,846) 570,055 (15,834,625) ------------ ------------ ------------- ------------- Class A Shares Shares issued 841,577 1,639,657 17,939,461 13,919,274 Shares issued in conversion from Advisor Class @ 475,004 -- 1,644,628 -- Dividends reinvested 161,295 186,350 938,144 1,019,330 Shares redeemed (5,711,578) (6,337,106) (22,359,455) (23,375,690) ------------ ------------ ------------- ------------- Total Class A Shares (4,233,702) (4,511,099) (1,837,222) (8,437,086) ------------ ------------ ------------- ------------- Class B Shares Shares issued 27,342 146,483 37,119 249,753 Dividends reinvested 3,452 3,272 22,886 29,804 Shares redeemed (224,507) (174,980) (536,422) (1,106,990) ------------ ------------ ------------- ------------- Total Class B Shares (193,713) (25,225) (476,417) (827,433) ------------ ------------ ------------- ------------- Class C Shares Shares issued 3,970 41,922 789,910 464,010 Dividends reinvested 125 136 12,603 13,504 Shares redeemed (43,347) (40,412) (878,853) (536,264) ------------ ------------ ------------- ------------- Total Class C Shares (39,252) 1,646 (76,340) (58,750) ------------ ------------ ------------- ------------- Advisor Shares @ Shares issued 25,250 478,077 98,888 980,198 Dividends reinvested -- 367 6,327 22,473 Shares redeemed (475,005) (16,542) (2,338,049) (798,958) ------------ ------------ ------------- ------------- Total Advisor Shares (449,755) 461,902 (2,232,834) 203,713 ------------ ------------ ------------- ------------- Select Shares Shares issued NA NA 2,650,941 2,182,509 Dividends reinvested NA NA 189,097 258,738 Shares redeemed NA NA (8,021,420) (4,586,055) ------------ ------------ ------------- ------------- Total Select Shares NA NA (5,181,382) (2,144,808) ------------ ------------ ------------- ------------- Preferred Shares Shares issued NA NA 13,337,348 12,352,597 Dividends reinvested NA NA 1,031,374 1,086,916 Shares redeemed NA NA (18,226,313) (17,954,481) ------------ ------------ ------------- ------------- Total Preferred Shares NA NA (3,857,591) (4,514,968) ------------ ------------ ------------- ------------- Trust Shares Shares issued NA NA 1,419,562 751,520 Dividends reinvested NA NA 211,891 224,722 Shares redeemed NA NA (8,276,300) (9,220,808) ------------ ------------ ------------- ------------- Total Trust Shares NA NA (6,644,847) (8,244,566) ------------ ------------ ------------- ------------- Change from capital transactions $(30,109,974) $(14,015,622) $ (19,736,578) $ (39,858,523) ============ ============ ============= ============= International Equity Strategic Income ----------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------- ------------ ------------ Capital Transactions: Institutional Shares Shares issued $ 107,442,491 $ 88,895,499 $ 21,983,904 $ 25,799,720 Dividends reinvested 37,795,968 9,336,286 4,073,364 1,928,693 Shares redeemed (84,685,323) (151,154,015) (35,830,867) (17,153,564) ------------- ------------- ------------ ------------ Total Institutional Shares 60,553,136 (52,922,230) (9,773,599) 10,574,849 ------------- ------------- ------------ ------------ Class A Shares Shares issued 2,896,227 5,000,432 1,249,377 1,441,940 Shares issued in conversion from Advisor Class @ 9,645,937 -- 15,920,156 -- Dividends reinvested 2,514,901 710,851 1,125,496 188,854 Shares redeemed (9,970,244) (17,514,209) (5,938,850) (1,094,835) ------------- ------------- ------------ ------------ Total Class A Shares 5,086,821 (11,802,926) 12,356,179 535,959 ------------- ------------- ------------ ------------ Class B Shares Shares issued 301,088 461,138 57,385 403,747 Dividends reinvested 149,739 37,477 55,348 50,473 Shares redeemed (347,766) (323,095) (460,088) (500,115) ------------- ------------- ------------ ------------ Total Class B Shares 103,061 175,520 (347,355) (45,895) ------------- ------------- ------------ ------------ Class C Shares Shares issued 338,590 124,212 917,581 516,524 Dividends reinvested 63,241 20,879 816,495 711,565 Shares redeemed (343,340) (587,938) (5,538,549) (5,510,754) ------------- ------------- ------------ ------------ Total Class C Shares 58,491 (442,847) (3,804,473) (4,282,665) ------------- ------------- ------------ ------------ Advisor Shares @ Shares issued 102,711 354,645 114,121 1,816,296 Dividends reinvested -- 235,222 155,553 904,714 Shares redeemed (10,037,402) (2,338,289) (16,773,483) (6,402,163) ------------- ------------- ------------ ------------ Total Advisor Shares (9,934,691) (1,748,422) (16,503,809) (3,681,153) ------------- ------------- ------------ ------------ 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 $ 55,866,818 $ (66,740,905) $(18,073,057) $ 3,101,095 ============= ============= ============ ============ See notes to financial statements. 155 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Disciplined All Cap Value Large Cap Value ------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ----------- ----------- ------------ ------------ Share Transactions: Institutional Shares Shares issued 2,610,095 1,564,867 11,460,724 10,138,877 Dividends reinvested 1,429,339 1,573,035 3,192,740 6,073,483 Shares redeemed (3,546,567) (3,221,883) (17,353,887) (10,589,688) ----------- ----------- ------------ ------------ Total Institutional Shares 492,867 (83,981) (2,700,423) 5,622,672 ----------- ----------- ------------ ------------ Class A Shares Shares issued 865,717 485,218 442,042 986,486 Shares issued in conversion from Advisor Class @ 1,247,239 -- 22,896 -- Dividends reinvested 446,442 236,445 129,520 231,921 Shares redeemed (1,331,075) (478,613) (1,114,026) (711,058) ----------- ----------- ------------ ------------ Total Class A Shares 1,228,323 243,050 (519,568) 507,349 ----------- ----------- ------------ ------------ Class B Shares Shares issued 11,141 69,465 5,935 45,718 Dividends reinvested 150,389 152,646 22,786 49,815 Shares redeemed (232,910) (118,351) (93,999) (80,791) ----------- ----------- ------------ ------------ Total Class B Shares (71,380) 103,760 (65,278) 14,742 ----------- ----------- ------------ ------------ Class C Shares Shares issued 289,994 188,790 28,721 50,586 Dividends reinvested 34,095 24,509 7,986 17,910 Shares redeemed (146,217) (59,334) (59,831) (43,183) ----------- ----------- ------------ ------------ Total Class C Shares 177,872 153,965 (23,124) 25,313 ----------- ----------- ------------ ------------ Advisor Shares @ Shares issued 22,635 78,829 97 13,860 Dividends reinvested 2,668 225,276 64 2,530 Shares redeemed (1,319,178) (311,225) (26,037) (618) ----------- ----------- ------------ ------------ Total Advisor Shares (1,293,875) (7,120) (25,876) 15,772 ----------- ----------- ------------ ------------ 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 533,807 409,674 (3,334,269) 6,185,848 =========== =========== ============ ============ - ---------- @ Advisor Shares merged into Class A Shares on November 26, 2007. See Note 1. See notes to financial statements. 156 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Structured Large Cap Plus Equity Index ------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ----------- ----------- ------------ ------------ Share Transactions: Institutional Shares Shares issued 585,317 2,106,786 2,234,919 2,657,398 Dividends reinvested 114,438 45,850 114,790 109,758 Shares redeemed (2,219,177) (2,509,205) (2,321,873) (3,367,121) ----------- ----------- ------------ ------------ Total Institutional Shares (1,519,422) (356,569) 27,836 (599,965) ----------- ----------- ------------ ------------ Class A Shares Shares issued 51,661 99,092 684,184 510,858 Shares issued in conversion from Advisor Class @ 29,339 -- 61,758 -- Dividends reinvested 9,832 11,355 35,041 37,908 Shares redeemed (360,870) (373,930) (846,425) (861,780) ----------- ----------- ------------ ------------ Total Class A Shares (270,038) (263,483) (65,442) (313,014) ----------- ----------- ------------ ------------ Class B Shares Shares issued 1,621 9,010 1,392 9,506 Dividends reinvested 200 198 852 1,072 Shares redeemed (14,215) (10,270) (20,101) (41,816) ----------- ----------- ------------ ------------ Total Class B Shares (12,394) (1,062) (17,857) (31,238) ----------- ----------- ------------ ------------ Class C Shares Shares issued 243 2,494 30,437 17,237 Dividends reinvested 7 8 471 503 Shares redeemed (2,580) (2,495) (33,474) (19,718) ----------- ----------- ------------ ------------ Total Class C Shares (2,330) 7 (2,566) (1,978) ----------- ----------- ------------ ------------ Advisor Shares @ Shares issued 1,478 28,294 3,539 35,407 Dividends reinvested -- 22 219 833 Shares redeemed (29,022) (958) (86,159) (29,232) ----------- ----------- ------------ ------------ Total Advisor Shares (27,544) 27,358 (82,401) 7,008 ----------- ----------- ------------ ------------ Select Shares Shares issued NA NA 99,285 81,744 Dividends reinvested NA NA 6,996 9,597 Shares redeemed NA NA (288,574) (169,033) ----------- ----------- ------------ ------------ Total Select Shares NA NA (182,293) (77,692) ----------- ----------- ------------ ------------ Preferred Shares Shares issued NA NA 500,849 453,928 Dividends reinvested NA NA 38,431 40,274 Shares redeemed NA NA (685,113) (664,625) ----------- ----------- ------------ ------------ Total Preferred Shares NA NA (145,833) (170,423) ----------- ----------- ------------ ------------ Trust Shares Shares issued NA NA 53,269 27,754 Dividends reinvested NA NA 7,891 8,324 Shares redeemed NA NA (307,364) (343,720) ----------- ----------- ------------ ------------ Total Trust Shares NA NA (246,204) (307,642) ----------- ----------- ------------ ------------ Change from capital transactions (1,831,728) (593,749) (714,760) (1,494,944) =========== =========== ============ ============ International Equity Strategic Income ------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ----------- ----------- ------------ ------------ Share Transactions: Institutional Shares Shares issued 7,675,377 6,855,630 2,262,109 2,238,431 Dividends reinvested 2,466,260 19,539 385,400 166,799 Shares redeemed (5,925,937) (10,576,978) (3,402,388) (1,489,559) ----------- ----------- ------------ ------------ Total Institutional Shares 4,215,700 (3,701,809) (754,879) 915,671 ----------- ----------- ------------ ------------ Class A Shares Shares issued 190,419 350,503 119,016 124,977 Shares issued in conversion from Advisor Class @ 608,573 -- 1,483,705 -- Dividends reinvested 165,597 51,405 108,234 16,419 Shares redeemed (701,535) (1,175,636) (573,107) (95,311) ----------- ----------- ------------ ------------ Total Class A Shares 263,054 (773,728) 1,137,848 46,085 ----------- ----------- ------------ ------------ Class B Shares Shares issued 21,339 33,438 5,647 35,106 Dividends reinvested 10,032 2,760 5,271 4,386 Shares redeemed (25,184) (23,219) (43,372) (43,621) ----------- ----------- ------------ ------------ Total Class B Shares 6,187 12,979 (32,454) (4,129) ----------- ----------- ------------ ------------ Class C Shares Shares issued 24,176 9,116 88,856 45,117 Dividends reinvested 4,363 1,580 78,296 62,248 Shares redeemed (25,632) (43,978) (530,122) (483,076) ----------- ----------- ------------ ------------ Total Class C Shares 2,907 (33,282) (362,970) (375,711) ----------- ----------- ------------ ------------ Advisor Shares @ Shares issued 6,258 24,565 10,234 157,665 Dividends reinvested -- 17,036 13,901 78,659 Shares redeemed (633,597) (165,057) (1,560,928) (557,004) ----------- ----------- ------------ ------------ Total Advisor Shares (627,339) (123,456) (1,536,793) (320,680) ----------- ----------- ------------ ------------ 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 3,860,509 (4,619,296) (1,549,248) 261,236 =========== =========== ============ ============ See notes to financial statements. 157 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- LifeModel LifeModel Aggressive(SM) Moderately Aggressive(SM) ------------------------------- ------------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Capital Transactions: Institutional Shares Shares issued $ 36,651,093 $ 34,927,679 $ 35,765,190 $ 40,365,993 Dividends reinvested 11,973,027 3,800,909 14,649,716 5,982,606 Shares redeemed (36,991,479) (35,137,023) (35,921,085) (49,433,158) -------------- -------------- -------------- -------------- Total Institutional Shares 11,632,641 3,591,565 14,493,821 (3,084,559) -------------- -------------- -------------- -------------- Class A Shares Shares issued 6,578,900 10,153,495 11,129,345 16,757,098 Shares issued in conversion from Advisor Class @ 1,025,921 -- 1,726,994 -- Dividends reinvested 5,129,311 1,601,098 11,137,882 4,649,043 Shares redeemed (14,482,942) (11,631,308) (31,570,465) (35,182,475) -------------- -------------- -------------- -------------- Total Class A Shares (1,748,810) 123,285 (7,576,244) (13,776,334) -------------- -------------- -------------- -------------- Class B Shares Shares issued 251,759 1,342,781 867,984 4,627,115 Dividends reinvested 1,437,622 465,834 4,594,307 1,634,030 Shares redeemed (3,781,777) (2,440,273) (9,610,608) (8,599,177) -------------- -------------- -------------- -------------- Total Class B Shares (2,092,396) (631,658) (4,148,317) (2,338,032) -------------- -------------- -------------- -------------- Class C Shares Shares issued 256,370 678,624 575,356 1,687,050 Dividends reinvested 225,654 69,289 588,739 221,513 Shares redeemed (712,318) (733,790) (2,699,330) (1,985,103) -------------- -------------- -------------- -------------- Total Class C Shares (230,294) 14,123 (1,535,235) (76,540) -------------- -------------- -------------- -------------- Advisor Shares @ Shares issued 62,490 354,426 87,212 681,514 Dividends reinvested -- 21,086 4,049 50,951 Shares redeemed (1,232,279) (105,015) (2,051,762) (302,143) -------------- -------------- -------------- -------------- Total Advisor Shares (1,169,789) 270,498 (1,960,501) 430,322 -------------- -------------- -------------- -------------- Change from capital transactions $ 6,391,352 $ 3,367,814 $ (726,476) $ (18,845,143) ============== ============== ============== ============== - ---------- @ Advisor Shares merged into Class A on November 26, 2007. See Note 1. See notes to financial statements. 158 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- LifeModel LifeModel Moderate(SM) Moderately Conservative(SM) ------------------------------- ------------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Capital Transactions: Institutional Shares Shares issued $ 63,815,563 $ 59,249,615 $ 20,168,978 $ 12,947,962 Dividends reinvested 32,832,009 18,093,490 3,836,684 2,372,312 Shares redeemed (100,326,429) (104,703,184) (16,227,791) (18,923,660) -------------- -------------- -------------- -------------- Total Institutional Shares (3,678,857) (27,360,079) 7,777,871 (3,603,386) -------------- -------------- -------------- -------------- Class A Shares Shares issued 15,105,360 11,504,247 2,584,086 3,504,603 Shares issued in conversion from Advisor Class @ 490,793 -- 67,850 -- Dividends reinvested 7,377,426 4,118,547 2,757,705 1,891,131 Shares redeemed (31,148,455) (30,724,498) (11,387,672) (9,111,508) -------------- -------------- -------------- -------------- Total Class A Shares (8,174,876) (15,101,704) (5,978,031) (3,715,774) -------------- -------------- -------------- -------------- Class B Shares Shares issued 1,084,157 2,795,247 472,662 729,678 Dividends reinvested 2,916,318 1,505,425 1,286,727 840,400 Shares redeemed (9,160,343) (7,684,255) (4,348,925) (4,255,270) -------------- -------------- -------------- -------------- Total Class B Shares (5,159,868) (3,383,583) (2,589,536) (2,685,192) -------------- -------------- -------------- -------------- Class C Shares Shares issued 325,086 832,622 440,591 593,835 Dividends reinvested 385,650 209,656 177,134 121,197 Shares redeemed (1,721,243) (1,836,745) (932,535) (1,179,434) -------------- -------------- -------------- -------------- Total Class C Shares (1,010,507) (794,467) (314,810) (464,402) -------------- -------------- -------------- -------------- Advisor Shares @ Shares issued 78,341 175,828 -- 886 Dividends reinvested 1,867 17,550 427 3,399 Shares redeemed (504,388) (216,686) (68,210) (1,440) -------------- -------------- -------------- -------------- Total Advisor Shares (424,180) (23,308) (67,783) 2,845 -------------- -------------- -------------- -------------- Change from capital transactions $ (18,448,288) $ (46,663,141) $ (1,172,289) $ (10,465,909) ============== ============== ============== ============== LifeModel Conservative(SM) High Yield Bond ------------------------------- ------------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Capital Transactions: Institutional Shares Shares issued $ 18,340,781 $ 8,971,554 $ 11,952,468 $ 23,930,806 Dividends reinvested 1,823,371 1,412,143 2,386,235 908,825 Shares redeemed (13,605,138) (10,839,119) (30,016,314) (21,120,553) -------------- -------------- -------------- -------------- Total Institutional Shares 6,559,014 (455,422) (15,677,611) 3,719,078 -------------- -------------- -------------- -------------- Class A Shares Shares issued 3,811,460 1,624,590 1,737,216 42,518 Shares issued in conversion from Advisor Class @ 46,710 -- 13,971 -- Dividends reinvested 886,855 821,482 9,811 10,126 Shares redeemed (5,438,575) (3,922,289) (1,691,250) (101,594) -------------- -------------- -------------- -------------- Total Class A Shares (693,550) (1,476,217) 69,748 (48,950) -------------- -------------- -------------- -------------- Class B Shares Shares issued 360,223 595,136 73,109 63,689 Dividends reinvested 434,348 421,743 2,954 2,388 Shares redeemed (1,907,057) (2,250,550) (72,393) -- -------------- -------------- -------------- -------------- Total Class B Shares (1,112,486) (1,233,671) 3,670 66,077 -------------- -------------- -------------- -------------- Class C Shares Shares issued 223,628 400,660 556 75,737 Dividends reinvested 125,660 136,798 2,039 1,979 Shares redeemed (927,467) (1,359,289) (10,787) (57) -------------- -------------- -------------- -------------- Total Class C Shares (578,179) (821,831) (8,192) 77,659 -------------- -------------- -------------- -------------- Advisor Shares @ Shares issued -- 2,072 -- 4,542 Dividends reinvested 386 379 109 69 Shares redeemed (46,710) (1,650) (13,971) -- -------------- -------------- -------------- -------------- Total Advisor Shares (46,324) 801 (13,862) 4,611 -------------- -------------- -------------- -------------- Change from capital transactions 4,128,475 $ (3,986,340) $ (15,626,247) $ 3,818,475 ============== ============== ============== ============== See notes to financial statements. 159 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- LifeModel LifeModel Aggressive(SM) Moderately Aggressive(SM) ------------------------ ------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Share Transactions: Institutional Shares Shares issued 2,420,541 2,179,846 2,524,975 2,687,689 Dividends reinvested 747,918 242,859 991,426 401,622 Shares redeemed (2,420,205) (2,169,598) (2,491,206) (3,266,867) ---------- ---------- ---------- ---------- Total Institutional Shares 748,254 253,107 1,025,195 (177,556) ---------- ---------- ---------- ---------- Class A Shares Shares issued 426,168 633,575 778,679 1,114,345 Shares issued in conversion from Advisor Class @ 62,824 -- 113,097 -- Dividends reinvested 321,974 102,601 754,334 312,808 Shares redeemed (961,357) (727,219) (2,250,245) (2,346,840) ---------- ---------- ---------- ---------- Total Class A Shares (150,391) 8,957 (604,135) (919,687) ---------- ---------- ---------- ---------- Class B Shares Shares issued 17,098 86,995 60,488 312,920 Dividends reinvested 92,484 30,558 313,003 110,765 Shares redeemed (254,078) (155,066) (683,464) (572,303) ---------- ---------- ---------- ---------- Total Class B Shares (144,496) (37,513) (309,973) (148,618) ---------- ---------- ---------- ---------- Class C Shares Shares issued 17,035 43,671 39,854 115,061 Dividends reinvested 14,531 4,545 40,139 15,015 Shares redeemed (48,144) (47,834) (189,582) (132,570) ---------- ---------- ---------- ---------- Total Class C Shares (16,578) 382 (109,589) (2,494)^ ---------- ---------- ---------- ---------- Advisor Shares @ Shares issued 3,820 21,831 5,575 46,065 Dividends reinvested -- 1,350 256 3,432 Shares redeemed (74,630) (6,370) (133,454) (20,069) ---------- ---------- ---------- ---------- Total Advisor Shares (70,810) 16,811 (127,623) 29,428 ---------- ---------- ---------- ---------- Change from capital transactions 365,979 241,744 (126,125) (1,218,927) ========== ========== ========== ========== - ---------- @ Advisor Shares merged into Class A on November 26, 2007. See Note 1. See notes to financial statements. 160 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- LifeModel LifeModel Moderate(SM) Moderately Conservative(SM) ------------------------ --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Share Transactions: Institutional Shares Shares issued 5,027,555 4,525,729 1,796,229 1,091,799 Dividends reinvested 2,572,715 1,386,712 337,217 201,548 Shares redeemed (7,999,852) (7,959,327) (1,425,032) (1,589,759) ---------- ---------- ---------- ---------- Total Institutional Shares (399,582) (2,046,886) 708,414 (296,412) ---------- ---------- ---------- ---------- Class A Shares Shares issued 1,182,729 878,183 233,445 295,938 Shares issued in conversion from Advisor Class @ 37,069 -- 5,726 -- Dividends reinvested 577,991 316,151 242,334 160,913 Shares redeemed (2,510,605) (2,342,029) (1,031,296) (769,645) ---------- ---------- ---------- ---------- Total Class A Shares (712,816) (1,147,695) (549,791) (312,794) ---------- ---------- ---------- ---------- Class B Shares Shares issued 87,734 215,547 43,140 62,156 Dividends reinvested 228,926 116,307 113,227 71,792 Shares redeemed (745,942) (588,231) (391,623) (361,131) ---------- ---------- ---------- ---------- Total Class B Shares (429,282) (256,377) (235,256) (227,183) ---------- ---------- ---------- ---------- Class C Shares Shares issued 25,884 64,016 39,191 50,888 Dividends reinvested 30,248 16,173 15,573 10,346 Shares redeemed (139,443) (141,599) (85,312) (99,868) ---------- ---------- ---------- ---------- Total Class C Shares (83,311) (61,410) (30,548) (38,634) ---------- ---------- ---------- ---------- Advisor Shares @ Shares issued 5,704 13,528 -- 74 Dividends reinvested 138 1,349 35 289 Shares redeemed (38,164) (16,616) (5,760) (122) ---------- ---------- ---------- ---------- Total Advisor Shares (32,322) (1,739) (5,725) 241 ---------- ---------- ---------- ---------- Change from capital transactions (1,657,313) (3,514,107) (112,906) (874,782) ========== ========== ========== ========== LifeModel Conservative(SM) High Yield Bond ------------------------ --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Share Transactions: Institutional Shares Shares issued 1,720,311 815,900 1,247,164 2,403,226 Dividends reinvested 172,275 128,946 250,007 91,135 Shares redeemed (1,273,251) (985,860) (3,135,169) (2,148,591) ---------- ---------- ---------- ---------- Total Institutional Shares 619,335 (41,014) (1,637,998) 345,770 ---------- ---------- ---------- ---------- Class A Shares Shares issued 362,875 147,932 174,624 4,259 Shares issued in conversion from Advisor Class @ 4,277 -- 1,468 -- Dividends reinvested 83,839 75,155 1,035 944 Shares redeemed (517,198) (357,413) (172,818) (10,201) ---------- ---------- ---------- ---------- Total Class A Shares (66,207) (134,326) 4,309 (4,998) ---------- ---------- ---------- ---------- Class B Shares Shares issued 34,927 54,249 7,898 6,289 Dividends reinvested 41,089 38,657 314 145 Shares redeemed (182,825) (205,371) (7,478) -- ---------- ---------- ---------- ---------- Total Class B Shares (106,809) (112,465) 734 6,434 ---------- ---------- ---------- ---------- Class C Shares Shares issued 20,812 36,684 60 7,486 Dividends reinvested 11,881 12,526 215 198 Shares redeemed (86,320) (124,578) (1,144) (7) ---------- ---------- ---------- ---------- Total Class C Shares (53,627) (75,368) (869) 7,677 ---------- ---------- ---------- ---------- Advisor Shares @ Shares issued -- 189 -- 445 Dividends reinvested 35 34 11 7 Shares redeemed (4,281) (151) (1,463) -- ---------- ---------- ---------- ---------- Total Advisor Shares (4,246) 72 (1,452) 452 ---------- ---------- ---------- ---------- Change from capital transactions 388,446 (363,101) (1,635,276) 355,335 ========== ========== ========== ========== See notes to financial statements. 161 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Total Return Bond (a) Short Term Bond ---------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------- ------------ ------------ ------------ Capital Transactions: Institutional Shares Shares issued $ 55,448,603 $ 70,896,657 $ 38,778,368 $ 76,453,299 Shares issued in connection with acquistion of Intermediate Bond Fund ~ 432,862,663 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ 22,356,315 -- -- -- Dividends reinvested 15,233,723 3,479,976 5,752,008 2,207,601 Shares redeemed (153,495,216) (96,716,563) (69,879,465) (71,369,693) ------------- ------------ ------------ ------------ Total Institutional Shares 372,406,088 (22,339,930) (25,349,089) 7,291,207 ------------- ------------ ------------ ------------ Class A Shares Shares issued 4,757,347 563,966 1,555,050 1,051,806 Shares issued in connection with acquistion of Intermediate Bond Fund ~ 12,706,128 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ 2,629,403 -- -- -- Shares issued in conversion from Advisor Class @ 339,216 -- -- -- Dividends reinvested 761,624 414,760 296,526 377,495 Shares redeemed (7,293,118) (4,448,268) (4,423,619) (4,172,146) ------------- ------------ ------------ ------------ Total Class A Shares 13,900,600 (3,469,542) (2,572,043) (2,742,845) ------------- ------------ ------------ ------------ Class B Shares Shares issued 755,230 21,115 NA NA Shares issued in connection with acquistion of Intermediate Bond Fund ~ 1,750,919 -- NA NA Dividends reinvested 109,788 76,174 NA NA Shares redeemed (1,009,669) (605,497) NA NA ------------- ------------ ------------ ------------ Total Class B Shares 1,606,268 (508,208) NA NA ------------- ------------ ------------ ------------ Class C Shares Shares issued 45,337 16,152 119,629 12,861 Shares issued in connection with acquistion of Intermediate Bond Fund ~ 450,228 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ 1,153,974 -- -- -- Dividends reinvested 34,380 9,312 2,401 5,315 Shares redeemed (262,540) (116,453) (111,142) (63,505) ------------- ------------ ------------ ------------ Total Class C Shares 1,421,379 (90,989) 10,888 (45,329) ------------- ------------ ------------ ------------ Advisor Shares @ Shares issued 7,096 40,155 (23) -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ 101,035 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 2,939 7,984 -- 71 Shares redeemed (346,368) (76,619) -- (2,651) ------------- ------------ ------------ ------------ Total Advisor Shares (235,298) (28,480) (23) (2,580) ------------- ------------ ------------ ------------ Change from capital transactions $ 389,099,037 $(26,437,149) $(27,910,267) $ 4,500,453 ============= ============ ============ ============ - ---------- (a) Formerly the Bond Fund @ Advisor Shares merged into Class A on November 26, 2007. See Note 1. ~ Shares acquired November 16, 2007. See Note 1. See notes to financial statements. 162 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Intermediate Municipal Bond Municipal Bond --------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Capital Transactions: Institutional Shares Shares issued $ 11,143,061 $ 14,848,286 $ 6,756,337 $ 10,952,293 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 403,907 542,920 438,565 572,507 Shares redeemed (13,322,989) (10,305,152) (27,923,595) (26,521,625) ------------ ------------ ------------ ------------ Total Institutional Shares (1,776,021) 5,086,054 (20,728,693) (14,996,825) ------------ ------------ ------------ ------------ Class A Shares Shares issued 177,313 8,213 113,780 5,362 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Shares issued in conversion from Advisor Class @ 173,416 -- -- -- Dividends reinvested 29,984 42,352 51,914 64,362 Shares redeemed (464,042) (185,459) (473,769) (583,115) ------------ ------------ ------------ ------------ Total Class A Shares (83,329) (134,894) (308,075) (513,391) ------------ ------------ ------------ ------------ Class B Shares Shares issued 12,398 2,308 (140) 10,000 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Dividends reinvested 16,506 26,857 12,442 4,129 Shares redeemed (262,613) (172,034) (12,804) (100,164) ------------ ------------ ------------ ------------ Total Class B Shares (233,709) (142,869) (502) (86,035) ------------ ------------ ------------ ------------ Class C Shares Shares issued (5) 22,992 25,661 21,265 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 444 1,022 2,978 2,491 Shares redeemed (13,996) (68,508) (5,710) (10,368) ------------ ------------ ------------ ------------ Total Class C Shares (13,557) (44,494) 22,929 13,388 ------------ ------------ ------------ ------------ Advisor Shares @ Shares issued (1) 1,764 (24) -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 633 2,479 -- 66 Shares redeemed (173,415) (4,130) -- (2,614) ------------ ------------ ------------ ------------ Total Advisor Shares (172,783) 113 (24) (2,548) ------------ ------------ ------------ ------------ Change from capital transactions $ (2,279,399) $ 4,763,910 $(21,014,365) $(15,585,411) ============ ============ ============ ============ Ohio Michigan Municipal Bond Municipal Bond --------------------------- --------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Capital Transactions: Institutional Shares Shares issued $ 7,042,580 $ 7,512,232 $ 2,067,009 $ 4,476,722 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 363,069 137,160 16,579 23,597 Shares redeemed (11,848,920) (11,391,139) (7,929,585) (11,351,909) ------------ ------------ ------------ ------------ Total Institutional Shares (4,443,271) (3,741,747) (5,845,997) (6,851,590) ------------ ------------ ------------ ------------ Class A Shares Shares issued 45,529 429,180 12,849 3,454 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Shares issued in conversion from Advisor Class @ -- -- -- -- Dividends reinvested 123,712 178,284 55,670 93,788 Shares redeemed (2,570,900) (8,148,051) (2,037,810) (318,852) ------------ ------------ ------------ ------------ Total Class A Shares (2,401,659) (7,540,587) (1,969,291) (221,610) ------------ ------------ ------------ ------------ Class B Shares Shares issued (563) 2,008 (95) 38,572 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Dividends reinvested 43,399 60,664 6,762 7,002 Shares redeemed (712,882) (799,988) (29,256) (84,622) ------------ ------------ ------------ ------------ Total Class B Shares (670,046) (737,316) (22,589) (39,048) ------------ ------------ ------------ ------------ Class C Shares Shares issued (149) 70 59 66 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 15,046 20,242 2,061 3,014 Shares redeemed (194,007) (501,957) (73,485) (54,203) ------------ ------------ ------------ ------------ Total Class C Shares (179,110) (481,645) (71,365) (51,123) ------------ ------------ ------------ ------------ Advisor Shares @ Shares issued (28) -- (25) -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested -- 59 -- 48 Shares redeemed -- (2,600) -- (2,864) ------------ ------------ ------------ ------------ Total Advisor Shares (28) (2,541) (25) (2,816) ------------ ------------ ------------ ------------ Change from capital transactions $ (7,694,114) $(12,503,836) $ (7,909,267) $ (7,166,187) ============ ============ ============ ============ See notes to financial statements. 163 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Total Return Bond Short Term Bond -------------------------- ------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ----------- ----------- ----------- Share Transactions: Institutional Shares Shares issued 5,808,716 7,256,961 4,132,887 8,207,407 Shares issued in connection with acquistion of Intermediate Bond Fund ~ 44,475,085 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ 2,297,031 -- -- -- Dividends reinvested 1,599,833 357,171 613,604 237,823 Shares redeemed (16,017,321) (9,872,966) (7,423,354) (7,678,952) ------------ ----------- ----------- ----------- Total Institutional Shares 38,163,344 (2,258,834) (2,676,863) 766,278 ------------ ----------- ----------- ----------- Class A Shares Shares issued 490,264 57,474 165,297 113,156 Shares issued in connection with acquistion of Intermediate Bond Fund ~ 1,306,274 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ 270,320 -- -- -- Shares issued in conversion from Advisor Class @ 34,614 -- -- -- Dividends reinvested 79,925 42,438 31,641 40,674 Shares redeemed (761,289) (454,429) (471,481) (448,729) ------------ ----------- ----------- ----------- Total Class A Shares 1,420,108 (354,517) (274,543) (294,899) ------------ ----------- ----------- ----------- Class B Shares Shares issued 78,326 2,149 NA NA Shares issued in connection with acquistion of Intermediate Bond Fund ~ 179,884 -- NA NA Shares issued in connection with acquistion of Government Bond Fund ~ -- -- NA NA Dividends reinvested 11,512 7,787 NA NA Shares redeemed (105,506) (61,957) NA NA ------------ ----------- ----------- ----------- Total Class B Shares 164,216 (52,021) NA NA ------------ ----------- ----------- ----------- Class C Shares Shares issued 4,698 1,646 12,753 1,387 Shares issued in connection with acquistion of Intermediate Bond Fund ~ 46,240 -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ 118,517 -- -- -- Dividends reinvested 3,612 952 256 491 Shares redeemed (27,256) (11,887) (11,825) (6,821) ------------ ----------- ----------- ----------- Total Class C Shares 145,811 (9,289) 1,184 (4,943) ------------ ----------- ----------- ----------- Advisor Shares @ Shares issued 733 4,099 -- -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ 10,380 -- -- -- Dividends reinvested 303 816 -- 8 Shares redeemed (35,330) (7,837) -- (284) ------------ ----------- ----------- ----------- Total Advisor Shares (23,914) (2,922) -- (276) ------------ ----------- ----------- ----------- Change from capital transactions 39,869,565 (2,677,583) (2,950,222) 466,160 ============ =========== =========== =========== - ---------- @ Advisor Shares merged into Class A on November 26, 2007. See Note 1. - ---------- ~ Shares acquired November 16, 2007. See Note 1. See notes to financial statements. 164 Fifth Third Funds Statements of Changes in Net Assets, continued -- Fund Share Transactions - -------------------------------------------------------------------------------- Intermediate Municipal Bond Municipal Bond -------------------------- ------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ----------- ----------- ----------- Share Transactions: Institutional Shares Shares issued 1,197,990 1,578,169 674,217 1,094,007 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 43,469 57,169 43,706 56,392 Shares redeemed (1,425,594) (1,089,395) (2,785,691) (2,633,817) ------------ ----------- ----------- ----------- Total Institutional Shares (184,135) 545,943 (2,067,768) (1,483,418) ------------ ----------- ----------- ----------- Class A Shares Shares issued 18,877 803 11,257 535 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Shares issued in conversion from Advisor Class @ 18,429 -- -- -- Dividends reinvested 3,213 4,405 5,188 6,394 Shares redeemed (49,554) (19,561) (47,019) (58,079) ------------ ----------- ----------- ----------- Total Class A Shares (9,035) (14,353) (30,574) (51,150) ------------ ----------- ----------- ----------- Class B Shares Shares issued 1,356 198 -- -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 1,783 2,850 1,246 1,407 Shares redeemed (28,463) (18,378) (1,287) (10,037) ------------ ----------- ----------- ----------- Total Class B Shares (25,324) (15,330) (41) (8,630) ------------ ----------- ----------- ----------- Class C Shares Shares issued -- 2,442 2,558 2,023 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 48 108 298 248 Shares redeemed (1,483) (7,193) (570) (1,026) ------------ ----------- ----------- ----------- Total Class C Shares (1,435) (4,643) 2,286 1,245 ------------ ----------- ----------- ----------- Advisor Shares @ Shares issued -- 178 -- -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Dividends reinvested 68 221 -- 7 Shares redeemed (18,530) (434) -- (259) ------------ ----------- ----------- ----------- Total Advisor Shares (18,462) (35) -- (252) ------------ ----------- ----------- ----------- Change from capital transactions (238,391) 511,582 (2,096,097) (1,542,205) ============ =========== =========== =========== Ohio Michigan Municipal Bond Municipal Bond -------------------------- ------------------------- Year Year Year Year ended ended ended ended July 31, July 31, July 31, July 31, 2008 2007 2008 2007 ------------ ----------- ----------- ----------- Share Transactions: Institutional Shares Shares issued 697,365 746,843 206,961 450,836 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 36,146 13,532 1,655 2,378 Shares redeemed (1,181,942) (1,131,141) (787,994) (1,142,603) ------------ ----------- ----------- ----------- Total Institutional Shares (448,431) (370,766) (579,378) (689,389) ------------ ----------- ----------- ----------- Class A Shares Shares issued 5,459 42,256 1,322 357 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Shares issued in conversion from Advisor Class @ -- -- -- -- Dividends reinvested 12,350 17,710 5,576 9,470 Shares redeemed (255,481) (813,526) (201,745) (32,256) ------------ ----------- ----------- ----------- Total Class A Shares (237,672) (753,560) (194,847) (22,429) ------------ ----------- ----------- ----------- Class B Shares Shares issued -- 203 -- 3,873 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 4,437 6,164 676 706 Shares redeemed (72,825) (81,368) (2,937) (8,534) ------------ ----------- ----------- ----------- Total Class B Shares (68,388) (75,001) (2,261) (3,955) ------------ ----------- ----------- ----------- Class C Shares Shares issued 7 7 7 7 Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Shares issued in connection with acquistion of Government Bond Fund ~ -- -- -- -- Dividends reinvested 1,508 2,019 206 304 Shares redeemed (19,360) (50,211) (7,335) (5,480) ------------ ----------- ----------- ----------- Total Class C Shares (17,845) (48,185) (7,122) (5,169) ------------ ----------- ----------- ----------- Advisor Shares @ Shares issued -- -- -- -- Shares issued in connection with acquistion of Intermediate Bond Fund ~ -- -- -- -- Dividends reinvested -- 6 -- 5 Shares redeemed -- (258) -- (260) ------------ ----------- ----------- ----------- Total Advisor Shares -- (252) -- (255) ------------ ----------- ----------- ----------- Change from capital transactions (772,336) (1,247,764) (783,608) (721,197) ============ =========== =========== =========== See notes to financial statements. 165 Fifth Third Funds Statement of Cash Flows For the period ended July 31, 2008 - -------------------------------------------------------------------------------- Structured Large Cap Plus ------------- Increase (Decrease) in Cash: Cash flows from operating activities: Net decrease in net assets from operations $ (21,470,558) Adjustments to reconcile net decrease in net assets from operations to net cash used in operating activities: Purchases of long-term securities (311,622,930) Proceeds from sales of long-term securities 343,455,223 Sale of short-term investment securities, net 4,480,132 Decrease in proceeds from securities sold short (6,897,054) Decrease in dividends receivable (20,593) Increase in receivable for securities sold 1,843,543 Increase in other assets 1,370 Proceeds from futures contracts transactions (297,984) Increase in payable for investments purchased 302 Decrease in payable to manager (52,381) Decrease in distribution and administration services fee (1,495) Increase in dividends payable on securities sold short 52,113 Decrease in other liabilities (1,396) Unrealized depreciation on investments 8,974,769 Net realized loss on investments/futures 14,030,607 ------------- Net cash received from operating activities 32,473,668 ------------- Cash flows from financing activities: Cash distributions paid* (280,890) Proceeds from shares sold 10,749,885 Payments on shares redeemed (42,942,663) ------------- Net cash used for financing activities (32,473,668) ------------- Net Increase (Decrease) in Cash 0 Cash: Beginning of year 0 ------------- End of year $ 0 ============= - ---------- * Noncash financing activities not included herein consist of reinvestment of dividends of $2,062,517. See notes to financial statements. 166 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 Year ended 7/31/08 $13.42 (0.06)## (0.77) (0.83) -- (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) - -------------------------------------------------------------------------------------------------------------------------- Small Cap Growth Class A Shares Year ended 7/31/08 $12.84 (0.08)## (0.72) (0.80) -- (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) - -------------------------------------------------------------------------------------------------------------------------- Small Cap Growth Class B Shares Year ended 7/31/08 $12.21 (0.14)## (0.65) (0.79) -- (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) - -------------------------------------------------------------------------------------------------------------------------- Small Cap Growth Class C Shares Year ended 7/31/08 $12.23 (0.14)## (0.66) (0.80) -- (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) - -------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------- Small Cap Growth Institutional Shares Year ended 7/31/08 (4.50) $ 8.09 (10.17)% Year ended 7/31/07 (3.24) $13.42 20.45% Year ended 7/31/06 (1.87) $14.10 2.71% Year ended 7/31/05 (2.87) $15.58 20.81% Year ended 7/31/04 (1.73) $15.48 7.31% - ------------------------------------------------------------------------------------- Small Cap Growth Class A Shares Year ended 7/31/08 (4.50) $ 7.54 (10.48)% Year ended 7/31/07 (3.24) $12.84 20.11% Year ended 7/31/06 (1.87) $13.65 2.50% Year ended 7/31/05 (2.87) $15.17 20.45% Year ended 7/31/04 (1.73) $15.18 7.16% - ------------------------------------------------------------------------------------- Small Cap Growth Class B Shares Year ended 7/31/08 (4.50) $ 6.92 (11.15)% Year ended 7/31/07 (3.24) $12.21 19.31% Year ended 7/31/06 (1.87) $13.21 1.69% Year ended 7/31/05 (2.87) $14.85 19.51% Year ended 7/31/04 (1.73) $15.02 6.30% - ------------------------------------------------------------------------------------- Small Cap Growth Class C Shares Year ended 7/31/08 (4.50) $ 6.93 (11.14)% Year ended 7/31/07 (3.24) $12.23 19.18% Year ended 7/31/06 (1.87) $13.23 1.75% Year ended 7/31/05 (2.87) $14.86 19.57% Year ended 7/31/04 (1.73) $15.03 6.29% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data ---------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ---------------------------------------------------------------------------------------------------------- Small Cap Growth Institutional Shares Year ended 7/31/08 $ 66,801 1.09% 1.01% (0.60)% 105% Year ended 7/31/07 $112,591 1.06% 1.01% (0.59)% 90% Year ended 7/31/06 $126,809 1.03% 1.02% (0.75)% 67% Year ended 7/31/05 $213,892 1.01% 1.01% (0.68)% 65% Year ended 7/31/04 $223,439 1.00% 1.00% (0.72)% 95% - ----------------------------------------------------------------------------------------------------------- Small Cap Growth Class A Shares Year ended 7/31/08 $ 10,722 1.34% 1.26% (0.86)% 105% Year ended 7/31/07 $ 16,036 1.30% 1.26% (0.84)% 90% Year ended 7/31/06 $ 17,783 1.28% 1.27% (0.99)% 67% Year ended 7/31/05 $ 22,714 1.26% 1.26% (0.93)% 65% Year ended 7/31/04 $ 25,921 1.25% 1.25% (0.99)% 95% - ---------------------------------------------------------------------------------------------------------- Small Cap Growth Class B Shares Year ended 7/31/08 $ 897 2.09% 2.01% (1.61)% 105% Year ended 7/31/07 $ 1,318 2.06% 2.01% (1.59)% 90% Year ended 7/31/06 $ 1,414 2.03% 2.02% (1.74)% 67% Year ended 7/31/05 $ 1,805 2.01% 2.01% (1.68)% 65% Year ended 7/31/04 $ 1,784 2.00% 2.00% (1.74)% 95% - ---------------------------------------------------------------------------------------------------------- Small Cap Growth Class C Shares Year ended 7/31/08 $ 273 2.09% 2.01% (1.61)% 105% Year ended 7/31/07 $ 426 2.05% 2.01% (1.60)% 90% Year ended 7/31/06 $ 384 2.03% 2.02% (1.75)% 67% Year ended 7/31/05 $ 618 2.01% 2.01% (1.68)% 65% Year ended 7/31/04 $ 810 2.00% 2.00% (1.74)% 95% - ---------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 168-169 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Institutional Shares Year ended 7/31/08 $15.70 (0.05)## (1.43) (1.48) -- (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 -- -- - ------------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Class A Shares Year ended 7/31/08 $15.20 (0.08)## (1.37) (1.45) -- (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 -- -- - ------------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Class B Shares Year ended 7/31/08 $14.31 (0.17)## (1.27) (1.44) -- (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 -- -- - ------------------------------------------------------------------------------------------------------------------------- Mid Cap Growth Class C Shares Year ended 7/31/08 $13.65 (0.16)## (1.17) (1.33) -- (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 -- -- - ------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------- Mid Cap Growth Institutional Shares Year ended 7/31/08 (2.19) $12.03 (11.24)% Year ended 7/31/07 (3.50) $15.70 17.32%@ Year ended 7/31/06 (0.21) $16.55 4.56% Year ended 7/31/05 -- $16.03 23.69% Year ended 7/31/04 -- $12.96 7.82% - ------------------------------------------------------------------------------------- Mid Cap Growth Class A Shares Year ended 7/31/08 (2.19) $11.56 (11.43)% Year ended 7/31/07 (3.50) $15.20 16.93%@ Year ended 7/31/06 (0.20) $16.17 4.34% Year ended 7/31/05 -- $15.69 23.35% Year ended 7/31/04 -- $12.72 7.61% - ------------------------------------------------------------------------------------- Mid Cap Growth Class B Shares Year ended 7/31/08 (2.19) $10.68 (12.14)% Year ended 7/31/07 (3.50) $14.31 16.14%@ Year ended 7/31/06 (0.19) $15.50 3.51% Year ended 7/31/05 -- $15.16 22.46% Year ended 7/31/04 -- $12.38 6.82% - ------------------------------------------------------------------------------------- Mid Cap Growth Class C Shares Year ended 7/31/08 (2.19) $10.13 (11.88)% Year ended 7/31/07 (3.50) $13.65 16.07%@ Year ended 7/31/06 (0.19) $14.94 3.57% Year ended 7/31/05 -- $14.61 22.36% Year ended 7/31/04 -- $11.94 6.89% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - -------------------------------------------------------------------------------------------------------- Mid Cap Growth Institutional Shares Year ended 7/31/08 $209,074 1.11% 1.09% (0.38)% 96% Year ended 7/31/07 $313,124 1.09% 1.09% (0.48)% 55% Year ended 7/31/06 $318,133 1.08% 1.08% (0.24)% 69% Year ended 7/31/05 $392,929 1.09% 1.09% (0.03)% 54% Year ended 7/31/04 $335,815 1.09% 1.09% (0.68)% 83% - -------------------------------------------------------------------------------------------------------- Mid Cap Growth Class A Shares Year ended 7/31/08 $ 20,378 1.36% 1.34% (0.62)% 96% Year ended 7/31/07 $ 29,103 1.35% 1.34% (0.73)% 55% Year ended 7/31/06 $ 34,437 1.33% 1.33% (0.49)% 69% Year ended 7/31/05 $ 41,921 1.34% 1.34% (0.29)% 54% Year ended 7/31/04 $ 49,586 1.34% 1.34% (0.93)% 83% - -------------------------------------------------------------------------------------------------------- Mid Cap Growth Class B Shares Year ended 7/31/08 $ 4,187 2.11% 2.09% (1.38)% 96% Year ended 7/31/07 $ 5,707 2.09% 2.09% (1.48)% 55% Year ended 7/31/06 $ 6,507 2.08% 2.08% (1.24)% 69% Year ended 7/31/05 $ 6,874 2.09% 2.09% (1.03)% 54% Year ended 7/31/04 $ 6,730 2.09% 2.09% (1.68)% 83% - -------------------------------------------------------------------------------------------------------- Mid Cap Growth Class C Shares Year ended 7/31/08 $ 714 2.11% 2.09% (1.37)% 96% Year ended 7/31/07 $ 802 2.09% 2.09% (1.47)% 55% Year ended 7/31/06 $ 1,122 2.08% 2.08% (1.22)% 69% Year ended 7/31/05 $ 1,600 2.09% 2.09% (1.03)% 54% Year ended 7/31/04 $ 1,700 2.09% 2.09% (1.68)% 83% - -------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 170-171 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Institutional Shares Year ended 7/31/08 $18.52 0.04## 0.72 0.76 (0.04) (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 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Class A Shares Year ended 7/31/08 $18.12 (0.01)## 0.71 0.70 (0.01) (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 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Class B Shares Year ended 7/31/08 $17.30 (0.13)## 0.69 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 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Class C Shares Year ended 7/31/08 $16.85 (0.12)## 0.66 0.54 -- (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 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------- Quality Growth Institutional Shares Year ended 7/31/08 (2.71) $16.57 2.79% Year ended 7/31/07 (0.33) $18.52 20.51%@ Year ended 7/31/06 -- $15.67 (4.10)% Year ended 7/31/05 (0.04) $16.34 12.13% Year ended 7/31/04 -- $14.61 2.67% - ------------------------------------------------------------------------------------- Quality Growth Class A Shares Year ended 7/31/08 (2.68) $16.14 2.51% Year ended 7/31/07 (0.31) $18.12 20.18%@ Year ended 7/31/06 -- $15.36 (4.30)% Year ended 7/31/05 (0.03) $16.05 11.83% Year ended 7/31/04 -- $14.38 2.42% - ------------------------------------------------------------------------------------- Quality Growth Class B Shares Year ended 7/31/08 (2.67) $15.19 1.78% Year ended 7/31/07 (0.26) $17.30 19.29%@ Year ended 7/31/06 -- $14.74 (5.03)% Year ended 7/31/05 --^ $15.52 10.95% Year ended 7/31/04 -- $13.99 1.75% - ------------------------------------------------------------------------------------- Quality Growth Class C Shares Year ended 7/31/08 (2.67) $14.72 1.70% Year ended 7/31/07 (0.26) $16.85 19.30%@ Year ended 7/31/06 -- $14.36 (5.03)% Year ended 7/31/05 --^ $15.12 10.95% Year ended 7/31/04 -- $13.63 1.72% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Institutional Shares Year ended 7/31/08 $371,615 1.11% 1.07% 0.21% 57% Year ended 7/31/07 $535,734 1.10% 1.08% 0.52% 98% Year ended 7/31/06 $616,737 1.08% 1.08% (0.18)% 108% Year ended 7/31/05 $707,766 1.08% 1.08% 0.16% 71% Year ended 7/31/04 $882,256 1.07% 1.07% (0.24)% 35% - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Class A Shares Year ended 7/31/08 $ 90,015 1.36% 1.32% (0.03)% 57% Year ended 7/31/07 $ 92,728 1.35% 1.33% 0.27% 98% Year ended 7/31/06 $114,828 1.33% 1.33% (0.42)% 108% Year ended 7/31/05 $165,836 1.33% 1.33% (0.08)% 71% Year ended 7/31/04 $220,904 1.32% 1.32% (0.49)% 35% - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Class B Shares Year ended 7/31/08 $ 14,165 2.11% 2.07% (0.77)% 57% Year ended 7/31/07 $ 11,347 2.10% 2.08% (0.49)% 98% Year ended 7/31/06 $ 13,259 2.08% 2.08% (1.18)% 108% Year ended 7/31/05 $ 17,791 2.08% 2.08% (0.85)% 71% Year ended 7/31/04 $ 20,947 2.07% 2.07% (1.24)% 35% - ------------------------------------------------------------------------------------------------------------------------------------ Quality Growth Class C Shares Year ended 7/31/08 $ 2,805 2.11% 2.07% (0.77)% 57% Year ended 7/31/07 $ 2,275 2.10% 2.08% (0.45)% 98% Year ended 7/31/06 $ 3,199 2.08% 2.08% (1.17)% 108% Year ended 7/31/05 $ 5,238 2.08% 2.08% (0.83)% 71% Year ended 7/31/04 $ 7,536 2.07% 2.07% (1.24)% 35% - ------------------------------------------------------------------------------------------------------------------------------------ See notes to financial highlights and notes to financial statements. Spread 172-173 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------- ------------------ Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ---------------------------------------------------------------------------------------------------------------------- Dividend Growth Institutional Shares Year ended 7/31/08 $ 25.50 0.34## (1.77) (1.43) (0.31) -- 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 -- -- - ---------------------------------------------------------------------------------------------------------------------- Dividend Growth Class A Shares Year ended 7/31/08 $ 25.07 0.27## (1.74) (1.47) (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 -- -- - ---------------------------------------------------------------------------------------------------------------------- Dividend Growth Class B Shares Year ended 7/31/08 $ 24.31 0.08## (1.67) (1.59) (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 -- -- - ---------------------------------------------------------------------------------------------------------------------- Dividend Growth Class C Shares Year ended 7/31/08 $ 23.67 0.08## (1.68) (1.60) (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 -- -- - ---------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------- Dividend Growth Institutional Shares Year ended 7/31/08 (0.31) $23.76 (5.69)% Year ended 7/31/07 (0.48) $25.50 15.22%@ Year ended 7/31/06 (0.26) $22.56 5.14% Year ended 7/31/05 -- $21.71 13.66% Year ended 7/31/04 -- $19.10 5.12% - ------------------------------------------------------------------------------------ Dividend Growth Class A Shares Year ended 7/31/08 (0.25) $23.35 (5.93)% Year ended 7/31/07 (0.42) $25.07 14.97%@ Year ended 7/31/06 (0.24) $22.18 5.05% Year ended 7/31/05 -- $21.34 13.39% Year ended 7/31/04 -- $18.82 4.91% - ------------------------------------------------------------------------------------ Dividend Growth Class B Shares Year ended 7/31/08 (0.15) $22.57 (6.62)% Year ended 7/31/07 (0.24) $24.31 14.11%@ Year ended 7/31/06 (0.16) $21.53 4.13% Year ended 7/31/05 -- $20.83 12.53% Year ended 7/31/04 -- $18.51 4.16% - ------------------------------------------------------------------------------------ Dividend Growth Class C Shares Year ended 7/31/08 (0.15) $21.92 (6.83)% Year ended 7/31/07 (0.25) $23.67 14.12%@ Year ended 7/31/06 (0.15) $20.97 4.22% Year ended 7/31/05 -- $20.27 12.55% Year ended 7/31/04 -- $18.01 4.10% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------ Dividend Growth Institutional Shares Year ended 7/31/08 $ 16,556 1.76% 0.73% 1.33% 76% Year ended 7/31/07 $ 18,875 1.67% 0.73% 2.08% 68% Year ended 7/31/06 $ 15,759 2.72% 0.73% 1.25% 147% Year ended 7/31/05 $ 5,973 1.99% 1.45% (0.73)% 28% Year ended 7/31/04 $ 7,166 1.74% 1.43% (0.68)% 81% - ------------------------------------------------------------------------------------------------------ Dividend Growth Class A Shares Year ended 7/31/08 $ 3,074 2.00% 0.98% 1.08% 76% Year ended 7/31/07 $ 3,926 1.92% 0.98% 1.80% 68% Year ended 7/31/06 $ 4,670 2.93% 0.98% 1.08% 147% Year ended 7/31/05 $ 7,087 2.24% 1.70% (0.98)% 28% Year ended 7/31/04 $ 9,391 2.00% 1.68% (0.98)% 81% - ------------------------------------------------------------------------------------------------------ Dividend Growth Class B Shares Year ended 7/31/08 $ 225 2.74% 1.73% 0.34% 76% Year ended 7/31/07 $ 369 2.66% 1.73% 1.08% 68% Year ended 7/31/06 $ 371 3.70% 1.73% 0.27% 147% Year ended 7/31/05 $ 311 2.97% 2.45% (1.73)% 28% Year ended 7/31/04 $ 441 2.74% 2.43% (1.74)% 81% - ------------------------------------------------------------------------------------------------------ Dividend Growth Class C Shares Year ended 7/31/08 $ 228 2.74% 1.73% 0.34% 76% Year ended 7/31/07 $ 356 2.67% 1.73% 1.02% 68% Year ended 7/31/06 $ 389 3.71% 1.73% 0.32% 147% Year ended 7/31/05 $ 516 3.00% 2.45% (1.73)% 28% Year ended 7/31/04 $ 580 2.75% 2.43% (1.71)% 81% - ------------------------------------------------------------------------------------------------------ See notes to financial highlights and notes to financial statements. Spread 174-175 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ --------------------- Net Realized and Unrealized Change in Net Asset Gains/(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 Year ended 7/31/08 $ 7.02 0.02## (0.78) (0.76) (0.01) (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) - ------------------------------------------------------------------------------------------------------------------------ Micro Cap Value Class A Shares Year ended 7/31/08 $ 6.73 0.01## (0.75) (0.74) -- (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) - ------------------------------------------------------------------------------------------------------------------------ Micro Cap Value Class B Shares Year ended 7/31/08 $ 6.39 (0.02)## (0.71) (0.73) -- (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) - ------------------------------------------------------------------------------------------------------------------------ Micro Cap Value Class C Shares Year ended 7/31/08 $ 6.39 (0.02)## (0.70) (0.72) -- (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) - ------------------------------------------------------------------------------------------------------------------------ Small Cap Value Institutional Shares Year ended 7/31/08 $ 20.29 0.19## (0.91) (0.72) (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) - ------------------------------------------------------------------------------------------------------------------------ Small Cap Value Class A Shares Year ended 7/31/08 $ 20.09 0.14## (0.90) (0.76) (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) - ------------------------------------------------------------------------------------------------------------------------ Small Cap Value Class B Shares Year ended 7/31/08 $ 19.34 --##^ (0.86) (0.86) -- (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) - ------------------------------------------------------------------------------------------------------------------------ Small Cap Value Class C Shares Year ended 7/31/08 $ 19.31 --##^ (0.87) (0.87) -- (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) - ------------------------------------------------------------------------------------------------------------------------ Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - -------------------------------------------------------------------------------------- Micro Cap Value Institutional Shares Year ended 7/31/08 (2.51) $ 3.75 (12.23)% Year ended 7/31/07 (1.97) $ 7.02 12.53% Year ended 7/31/06 (3.14) $ 8.05 1.93% Year ended 7/31/05 (0.72) $ 11.00 13.86% Year ended 7/31/04 (0.52) $ 10.32 32.84% - -------------------------------------------------------------------------------------- Micro Cap Value Class A Shares Year ended 7/31/08 (2.50) $ 3.49 (12.41)% Year ended 7/31/07 (1.96) $ 6.73 12.24% Year ended 7/31/06 (3.13) $ 7.80 1.59% Year ended 7/31/05 (0.72) $ 10.78 13.60% Year ended 7/31/04 (0.52) $ 10.14 32.56% - -------------------------------------------------------------------------------------- Micro Cap Value Class B Shares Year ended 7/31/08 (2.50) $ 3.16 (13.23)% Year ended 7/31/07 (1.93) $ 6.39 11.38% Year ended 7/31/06 (3.13) $ 7.52 0.86% Year ended 7/31/05 (0.72) $ 10.56 13.54% Year ended 7/31/04 (0.52) $ 9.96 32.13% - -------------------------------------------------------------------------------------- Micro Cap Value Class C Shares Year ended 7/31/08 (2.50) $ 3.17 (12.95)% Year ended 7/31/07 (1.92) $ 6.39 11.28% Year ended 7/31/06 (3.13) $ 7.52 0.86% Year ended 7/31/05 (0.72) $ 10.56 13.54% Year ended 7/31/04 (0.52) $ 9.96 32.13% - -------------------------------------------------------------------------------------- Small Cap Value Institutional Shares Year ended 7/31/08 (2.53) $ 17.04 (3.68)% Year ended 7/31/07 (2.85) $ 20.29 10.77% Year ended 7/31/06 (2.48) $ 20.89 2.62% Year ended 7/31/05 (1.66) $ 22.82 23.59% Year ended 7/31/04 (1.00) $ 20.01 20.11% - -------------------------------------------------------------------------------------- Small Cap Value Class A Shares Year ended 7/31/08 (2.49) $ 16.84 (3.95)% Year ended 7/31/07 (2.84) $ 20.09 10.53% Year ended 7/31/06 (2.43) $ 20.74 2.36% Year ended 7/31/05 (1.66) $ 22.68 23.24% Year ended 7/31/04 (0.98) $ 19.95 19.81% - -------------------------------------------------------------------------------------- Small Cap Value Class B Shares Year ended 7/31/08 (2.37) $ 16.11 (4.68)% Year ended 7/31/07 (2.81) $ 19.34 9.63% Year ended 7/31/06 (2.43) $ 20.18 1.59% Year ended 7/31/05 (1.66) $ 22.29 22.35% Year ended 7/31/04 (0.98) $ 19.76 19.02% - -------------------------------------------------------------------------------------- Small Cap Value Class C Shares Year ended 7/31/08 (2.37) $ 16.07 (4.74)% Year ended 7/31/07 (2.81) $ 19.31 9.66% Year ended 7/31/06 (2.43) $ 20.14 1.59% Year ended 7/31/05 (1.66) $ 22.25 22.39% Year ended 7/31/04 (0.98) $ 19.74 18.85% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data ----------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - --------------------------------------------------------------------------------------------------------- Micro Cap Value Institutional Shares Year ended 7/31/08 $ 22,662 1.82% 1.35% 0.37% 49% Year ended 7/31/07 $ 51,541 1.52% 1.35% 0.17% 72% Year ended 7/31/06 $ 72,981 1.40% 1.37% 0.23% 42% Year ended 7/31/05 $ 98,885 1.35% 1.35% (0.07)% 12% Year ended 7/31/04 $ 155,798 1.33% 1.33% (0.25)% 23% - --------------------------------------------------------------------------------------------------------- Micro Cap Value Class A Shares Year ended 7/31/08 $ 10,552 2.06% 1.60% 0.16% 49% Year ended 7/31/07 $ 11,486 1.77% 1.60% (0.08)% 72% Year ended 7/31/06 $ 17,759 1.65% 1.62% (0.05)% 42% Year ended 7/31/05 $ 29,172 1.60% 1.60% (0.31)% 12% Year ended 7/31/04 $ 41,402 1.58% 1.58% (0.49)% 23% - --------------------------------------------------------------------------------------------------------- Micro Cap Value Class B Shares Year ended 7/31/08 $ 3,032 2.81% 2.35% (0.62)% 49% Year ended 7/31/07 $ 5,069 2.53% 2.35% (0.87)% 72% Year ended 7/31/06 $ 6,032 2.40% 2.37% (0.73)% 42% Year ended 7/31/05 $ 7,348 2.36% 1.73% (0.40)% 12% Year ended 7/31/04 $ 6,937 2.33% 1.89% (0.81)% 23% - --------------------------------------------------------------------------------------------------------- Micro Cap Value Class C Shares Year ended 7/31/08 $ 1,749 2.81% 2.35% (0.62)% 49% Year ended 7/31/07 $ 2,853 2.51% 2.35% (0.75)% 72% Year ended 7/31/06 $ 5,161 2.40% 2.37% (0.71)% 42% Year ended 7/31/05 $ 6,143 2.36% 1.73% (0.39)% 12% Year ended 7/31/04 $ 5,624 2.33% 1.81% (0.82)% 23% - --------------------------------------------------------------------------------------------------------- Small Cap Value Institutional Shares Year ended 7/31/08 $ 86,463 1.24% 1.19% 1.05% 60% Year ended 7/31/07 $ 110,873 1.25% 1.20% 0.61% 46% Year ended 7/31/06 $ 116,503 1.24% 1.21% 0.39% 99% Year ended 7/31/05 $ 158,505 1.20% 1.20% (0.20)% 105% Year ended 7/31/04 $ 107,344 1.41% 1.25% (0.15)% 279% - --------------------------------------------------------------------------------------------------------- Small Cap Value Class A Shares Year ended 7/31/08 $ 1,682 1.50% 1.45% 0.77% 60% Year ended 7/31/07 $ 2,198 1.50% 1.45% 0.36% 46% Year ended 7/31/06 $ 2,434 1.49% 1.46% 0.11% 99% Year ended 7/31/05 $ 2,715 1.45% 1.45% (0.48)% 105% Year ended 7/31/04 $ 2,277 1.63% 1.49% (0.53)% 279% - --------------------------------------------------------------------------------------------------------- Small Cap Value Class B Shares Year ended 7/31/08 $ 834 2.25% 2.20% 0.03% 60% Year ended 7/31/07 $ 1,104 2.25% 2.20% (0.39)% 46% Year ended 7/31/06 $ 1,221 2.24% 2.21% (0.64)% 99% Year ended 7/31/05 $ 1,142 2.20% 2.19% (1.18)% 105% Year ended 7/31/04 $ 503 2.38% 2.24% (1.26)% 279% - --------------------------------------------------------------------------------------------------------- Small Cap Value Class C Shares Year ended 7/31/08 $ 384 2.25% 2.20% 0.01% 60% Year ended 7/31/07 $ 713 2.25% 2.20% (0.39)% 46% Year ended 7/31/06 $ 839 2.24% 2.21% (0.64)% 99% Year ended 7/31/05 $ 927 2.20% 2.19% (1.21)% 105% Year ended 7/31/04 $ 561 2.38% 2.24% (1.31)% 279% - --------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 176-177 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ --------------------- Net Realized and Unrealized Change in Net Asset Gains/(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 Year ended 7/31/08 $25.65 0.31## (4.14) (3.83) (0.28) (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) - --------------------------------------------------------------------------------------------------------------------- All Cap Value Class A Shares Year ended 7/31/08 $25.30 0.25## (4.07) (3.82) (0.23) (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) - --------------------------------------------------------------------------------------------------------------------- All Cap Value Class B Shares Year ended 7/31/08 $24.35 0.09## (3.89) (3.80) (0.09) (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) - --------------------------------------------------------------------------------------------------------------------- All Cap Value Class C Shares Year ended 7/31/08 $24.32 0.09## (3.89) (3.80) (0.10) (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) - --------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------- All Cap Value Institutional Shares Year ended 7/31/08 (3.84) $17.98 (17.47)% Year ended 7/31/07 (4.59) $25.65 18.93% Year ended 7/31/06 (2.39) $25.68 8.38% Year ended 7/31/05 (1.49) $26.04 22.51% Year ended 7/31/04 (0.12) $22.58 19.36% - ------------------------------------------------------------------------------------- All Cap Value Class A Shares Year ended 7/31/08 (3.79) $17.69 (17.65)% Year ended 7/31/07 (4.52) $25.30 18.58% Year ended 7/31/06 (2.33) $25.39 8.16% Year ended 7/31/05 (1.43) $25.76 22.22% Year ended 7/31/04 (0.08) $22.36 19.07% - ------------------------------------------------------------------------------------- All Cap Value Class B Shares Year ended 7/31/08 (3.65) $16.90 (18.24)% Year ended 7/31/07 (4.35) $24.35 17.65% Year ended 7/31/06 (2.21) $24.61 7.33% Year ended 7/31/05 (1.38) $25.11 21.33% Year ended 7/31/04 (0.07) $21.94 18.15% - ------------------------------------------------------------------------------------- All Cap Value Class C Shares Year ended 7/31/08 (3.66) $16.86 (18.25)% Year ended 7/31/07 (4.36) $24.32 17.67% Year ended 7/31/06 (2.21) $24.59 7.33% Year ended 7/31/05 (1.38) $25.09 21.24% Year ended 7/31/04 (0.07) $21.93 18.22% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data -------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ---------------------------------------------------------------------------------------------------- All Cap Value Institutional Shares Year ended 7/31/08 $165,714 1.34% 1.19% 1.43% 43% Year ended 7/31/07 $223,709 1.31% 1.22% 1.40% 23% Year ended 7/31/06 $226,189 1.31% 1.29% 0.99% 40% Year ended 7/31/05 $270,131 1.30% 1.30% 0.41% 24% Year ended 7/31/04 $235,228 1.30% 1.30% 0.29% 17% - ---------------------------------------------------------------------------------------------------- All Cap Value Class A Shares Year ended 7/31/08 $ 52,999 1.59% 1.44% 1.19% 43% Year ended 7/31/07 $ 44,717 1.56% 1.47% 1.14% 23% Year ended 7/31/06 $ 38,714 1.56% 1.54% 0.74% 40% Year ended 7/31/05 $ 39,433 1.55% 1.55% 0.15% 24% Year ended 7/31/04 $ 33,156 1.55% 1.55% 0.04% 17% - ---------------------------------------------------------------------------------------------------- All Cap Value Class B Shares Year ended 7/31/08 $ 15,431 2.34% 2.19% 0.43% 43% Year ended 7/31/07 $ 23,974 2.31% 2.22% 0.40% 23% Year ended 7/31/06 $ 21,679 2.31% 2.29% (0.01)% 40% Year ended 7/31/05 $ 22,278 2.30% 2.30% (0.60)% 24% Year ended 7/31/04 $ 18,795 2.30% 2.30% (0.71)% 17% - ---------------------------------------------------------------------------------------------------- All Cap Value Class C Shares Year ended 7/31/08 $ 8,647 2.34% 2.19% 0.43% 43% Year ended 7/31/07 $ 8,150 2.31% 2.22% 0.40% 23% Year ended 7/31/06 $ 4,455 2.31% 2.29% (0.01)% 40% Year ended 7/31/05 $ 4,553 2.30% 2.30% (0.58)% 24% Year ended 7/31/04 $ 3,824 2.30% 2.30% (0.71)% 17% - ---------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 178-179 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ----------------------------- ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ----------------------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Institutional Shares Year ended 7/31/08 $14.39 0.25## (2.03) (1.78) (0.23) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Class A Shares Year ended 7/31/08 $14.35 0.21## (2.03) (1.82) (0.19) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Class B Shares Year ended 7/31/08 $14.49 0.12## (2.05) (1.93) (0.09) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Disciplined Large Cap Value Class C Shares Year ended 7/31/08 $14.21 0.11## (2.01) (1.90) (0.09) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - -------------------------------------------------------------------------------------- Disciplined Large Cap Value Institutional Shares Year ended 7/31/08 (1.13) $11.48 (13.52)% Year ended 7/31/07 (2.35) $14.39 14.52%@ Year ended 7/31/06 (1.64) $14.72 9.29% Year ended 7/31/05 (0.57) $15.08 16.07% Year ended 7/31/04 (0.56) $13.52 19.22% - -------------------------------------------------------------------------------------- Disciplined Large Cap Value Class A Shares Year ended 7/31/08 (1.09) $11.44 (13.67)% Year ended 7/31/07 (2.31) $14.35 14.13%@ Year ended 7/31/06 (1.60) $14.69 9.05% Year ended 7/31/05 (0.53) $15.05 15.74% Year ended 7/31/04 (0.53) $13.50 18.96% - -------------------------------------------------------------------------------------- Disciplined Large Cap Value Class B Shares Year ended 7/31/08 (0.99) $11.57 (14.40)% Year ended 7/31/07 (2.20) $14.49 13.38%@ Year ended 7/31/06 (1.50) $14.81 8.22% Year ended 7/31/05 (0.43) $15.17 14.85% Year ended 7/31/04 (0.44) $13.61 18.07% - -------------------------------------------------------------------------------------- Disciplined Large Cap Value Class C Shares Year ended 7/31/08 (0.99) $11.32 (14.40)% Year ended 7/31/07 (2.20) $14.21 13.34%@ Year ended 7/31/06 (1.50) $14.56 8.21% Year ended 7/31/05 (0.43) $14.94 14.96% Year ended 7/31/04 (0.45) $13.40 18.07% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Institutional Shares Year ended 7/31/08 $487,006 1.08% 1.01% 1.88% 47% Year ended 7/31/07 $649,497 1.07% 1.03% 1.50% 49% Year ended 7/31/06 $581,507 1.07% 1.07% 1.40% 57% Year ended 7/31/05 $574,251 1.07% 1.07% 1.27% 31% Year ended 7/31/04 $632,120 1.07% 1.07% 1.27% 22% - ------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Class A Shares Year ended 7/31/08 $ 17,759 1.33% 1.26% 1.63% 47% Year ended 7/31/07 $ 29,725 1.32% 1.27% 1.24% 49% Year ended 7/31/06 $ 22,968 1.32% 1.32% 1.16% 57% Year ended 7/31/05 $ 24,805 1.32% 1.32% 1.01% 31% Year ended 7/31/04 $ 21,738 1.32% 1.32% 1.00% 22% - ------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Class B Shares Year ended 7/31/08 $ 3,932 2.08% 2.01% 0.88% 47% Year ended 7/31/07 $ 5,872 2.07% 2.03% 0.50% 49% Year ended 7/31/06 $ 5,783 2.07% 2.07% 0.40% 57% Year ended 7/31/05 $ 5,739 2.07% 2.07% 0.26% 31% Year ended 7/31/04 $ 4,807 2.07% 2.07% 0.27% 22% - ------------------------------------------------------------------------------------------------------------------ Disciplined Large Cap Value Class C Shares Year ended 7/31/08 $ 1,756 2.08% 2.01% 0.88% 47% Year ended 7/31/07 $ 2,533 2.07% 2.02% 0.50% 49% Year ended 7/31/06 $ 2,227 2.07% 2.07% 0.41% 57% Year ended 7/31/05 $ 2,313 2.07% 2.07% 0.26% 31% Year ended 7/31/04 $ 1,832 2.06% 2.06% 0.27% 22% - ------------------------------------------------------------------------------------------------------------------ See notes to financial highlights and notes to financial statements. Spread 180-181 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from --------------------------- --------------------- Net Realized and Unrealized Change in Net Asset Gains/(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 Year ended 7/31/08 $16.95 0.14## (2.22) (2.08) (0.13) (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) -- - ----------------------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Class A Shares Year ended 7/31/08 $16.71 0.10## (2.20) (2.10) (0.08) (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) -- - ----------------------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Class B Shares Year ended 7/31/08 $16.69 (0.02)## (2.18) (2.20) -- (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) -- - ----------------------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Class C Shares Year ended 7/31/08 $16.70 (0.02)## (2.19) (2.21) -- (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) -- - ----------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - -------------------------------------------------------------------------------------- Structured Large Cap Plus Institutional Shares Year ended 7/31/08 (0.21) $14.66 (12.31)% Year ended 7/31/07 (0.18) $16.95 12.94% Year ended 7/31/06 (0.34) $15.16 6.12% Year ended 7/31/05 (0.53) $14.61 14.92% Year ended 7/31/04 (0.12) $13.20 12.50% - -------------------------------------------------------------------------------------- Structured Large Cap Plus Class A Shares Year ended 7/31/08 (0.16) $14.45 (12.65)% Year ended 7/31/07 (0.15) $16.71 12.70% Year ended 7/31/06 (0.30) $14.96 5.84% Year ended 7/31/05 (0.49) $14.42 14.58% Year ended 7/31/04 (0.09) $13.04 12.21% - -------------------------------------------------------------------------------------- Structured Large Cap Plus Class B Shares Year ended 7/31/08 (0.08) $14.41 (13.24)% Year ended 7/31/07 (0.07) $16.69 11.86% Year ended 7/31/06 (0.21) $14.98 5.07% Year ended 7/31/05 (0.40) $14.46 13.67% Year ended 7/31/04 (0.01) $13.08 11.47% - -------------------------------------------------------------------------------------- Structured Large Cap Plus Class C Shares Year ended 7/31/08 (0.08) $14.41 (13.29)% Year ended 7/31/07 (0.07) $16.70 11.93% Year ended 7/31/06 (0.21) $14.98 5.07% Year ended 7/31/05 (0.39) $14.46 13.73% Year ended 7/31/04 (0.02) $13.08 11.38% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Institutional Shares Year ended 7/31/08 $133,506 1.76%+ 1.51%+ 0.89% 99% Year ended 7/31/07 $180,126 1.02%+ 0.92%+ 0.99% 141% Year ended 7/31/06 $166,510 1.03% 0.92% 1.09% 126% Year ended 7/31/05 $169,723 1.05% 0.92% 1.17% 102% Year ended 7/31/04 $ 90,222 1.04% 0.92% 0.84% 101% - ------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Class A Shares Year ended 7/31/08 $ 12,505 2.01%+ 1.76%+ 0.63% 99% Year ended 7/31/07 $ 18,972 1.27%+ 1.17%+ 0.75% 141% Year ended 7/31/06 $ 20,923 1.27% 1.17% 0.85% 126% Year ended 7/31/05 $ 24,026 1.31% 1.17% 0.99% 102% Year ended 7/31/04 $ 25,573 1.29% 1.17% 0.58% 101% - ------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Class B Shares Year ended 7/31/08 $ 723 2.76%+ 2.51%+ (0.11)% 99% Year ended 7/31/07 $ 1,044 2.03%+ 1.92%+ (0.01)% 141% Year ended 7/31/06 $ 953 2.03% 1.92% 0.09% 126% Year ended 7/31/05 $ 1,007 2.06% 1.92% 0.18% 102% Year ended 7/31/04 $ 783 2.04% 1.92% (0.17)% 101% - ------------------------------------------------------------------------------------------------------------------- Structured Large Cap Plus Class C Shares Year ended 7/31/08 $ 75 2.76%+ 2.51%+ (0.11)% 99% Year ended 7/31/07 $ 125 2.03%+ 1.92%+ (0.02)% 141% Year ended 7/31/06 $ 112 2.02% 1.92% 0.13% 126% Year ended 7/31/05 $ 193 2.06% 1.92% 0.21% 102% Year ended 7/31/04 $ 158 2.03% 1.92% (0.23)% 101% - ------------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 182-183 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ----------------------------------------------------------------------------------------------------------------------- Equity Index Institutional Shares Year ended 7/31/08 $27.60 0.52## (3.58) (3.06) (0.49) -- 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) -- - ----------------------------------------------------------------------------------------------------------------------- Equity Index Class A Shares Year ended 7/31/08 $27.51 0.46## (3.58) (3.12) (0.42) -- 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) -- - ----------------------------------------------------------------------------------------------------------------------- Equity Index Class B Shares Year ended 7/31/08 $27.34 0.26## (3.56) (3.30) (0.20) -- 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) -- - ----------------------------------------------------------------------------------------------------------------------- Equity Index Class C Shares Year ended 7/31/08 $27.37 0.26## (3.57) (3.31) (0.20) -- 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) -- - ----------------------------------------------------------------------------------------------------------------------- Equity Index Select Shares Year ended 7/31/08 $27.59 0.50## (3.58) (3.08) (0.46) -- 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(c) to 7/31/04 $19.86 0.22## 1.18 1.40 (0.26) -- - ----------------------------------------------------------------------------------------------------------------------- Equity Index Preferred Shares Year ended 7/31/08 $27.59 0.48## (3.58) (3.10) (0.44) -- 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(c) to 7/31/04 $19.86 0.22## 1.18 1.40 (0.25) -- - ----------------------------------------------------------------------------------------------------------------------- Equity Index Trust Shares Year ended 7/31/08 $27.60 0.46## (3.60) (3.14) (0.41) -- 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(c) to 7/31/04 $19.86 0.20## 1.18 1.38 (0.23) -- - ----------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - -------------------------------------------------------------------------------------- Equity Index Institutional Shares Year ended 7/31/08 (0.49) $24.05 (11.27)% Year ended 7/31/07 (0.49) $27.60 15.92% Year ended 7/31/06 (0.43) $24.24 5.21% Year ended 7/31/05 (0.44) $23.46 13.86% Year ended 7/31/04 (0.33) $21.01 12.75% - -------------------------------------------------------------------------------------- Equity Index Class A Shares Year ended 7/31/08 (0.42) $23.97 (11.51)% Year ended 7/31/07 (0.42) $27.51 15.65% Year ended 7/31/06 (0.38) $24.16 4.97% Year ended 7/31/05 (0.39) $23.38 13.58% Year ended 7/31/04 (0.28) $20.94 12.48% - -------------------------------------------------------------------------------------- Equity Index Class B Shares Year ended 7/31/08 (0.20) $23.84 (12.15)% Year ended 7/31/07 (0.22) $27.34 14.79% Year ended 7/31/06 (0.20) $24.01 4.17% Year ended 7/31/05 (0.23) $23.24 12.74% Year ended 7/31/04 (0.13) $20.83 11.64% - -------------------------------------------------------------------------------------- Equity Index Class C Shares Year ended 7/31/08 (0.20) $23.86 (12.17)% Year ended 7/31/07 (0.22) $27.37 14.81% Year ended 7/31/06 (0.19) $24.03 4.15% Year ended 7/31/05 (0.22) $23.26 12.72% Year ended 7/31/04 (0.13) $20.84 11.66% - -------------------------------------------------------------------------------------- Equity Index Select Shares Year ended 7/31/08 (0.46) $24.05 (11.32)% Year ended 7/31/07 (0.46) $27.59 15.83% Year ended 7/31/06 (0.42) $24.23 5.13% Year ended 7/31/05 (0.43) $23.45 13.79% 10/20/03(c) to 7/31/04 (0.26) $21.00 7.03%* - -------------------------------------------------------------------------------------- Equity Index Preferred Shares Year ended 7/31/08 (0.44) $24.05 (11.38)% Year ended 7/31/07 (0.46) $27.59 15.76% Year ended 7/31/06 (0.40) $24.23 5.06% Year ended 7/31/05 (0.40) $23.45 13.62% 10/20/03(c) to 7/31/04 (0.25) $21.01 7.03%* - -------------------------------------------------------------------------------------- Equity Index Trust Shares Year ended 7/31/08 (0.41) $24.05 (11.51)% Year ended 7/31/07 (0.42) $27.60 15.69% Year ended 7/31/06 (0.37) $24.23 4.95% Year ended 7/31/05 (0.39) $23.45 13.53% 10/20/03(c) to 7/31/04 (0.23) $21.01 6.95%* - -------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------ Equity Index Institutional Shares Year ended 7/31/08 $169,016 0.60% 0.19% 1.97% 4% Year ended 7/31/07 $193,180 0.61% 0.19% 1.84% 4% Year ended 7/31/06 $184,177 0.60% 0.19% 1.75% 6% Year ended 7/31/05 $168,279 0.62% 0.19% 1.97% 4% Year ended 7/31/04 $193,734 0.58% 0.27% 1.43% 14% - ------------------------------------------------------------------------------------------------------ Equity Index Class A Shares Year ended 7/31/08 $ 55,640 0.85% 0.44% 1.71% 4% Year ended 7/31/07 $ 65,640 0.86% 0.44% 1.59% 4% Year ended 7/31/06 $ 65,204 0.85% 0.44% 1.52% 6% Year ended 7/31/05 $ 70,261 0.87% 0.44% 1.69% 4% Year ended 7/31/04 $ 72,944 0.86% 0.47% 1.19% 14% - ------------------------------------------------------------------------------------------------------ Equity Index Class B Shares Year ended 7/31/08 $ 3,029 1.60% 1.19% 0.97% 4% Year ended 7/31/07 $ 3,961 1.61% 1.19% 0.84% 4% Year ended 7/31/06 $ 4,229 1.60% 1.19% 0.76% 6% Year ended 7/31/05 $ 4,399 1.63% 1.19% 0.93% 4% Year ended 7/31/04 $ 3,776 1.60% 1.23% 0.44% 14% - ------------------------------------------------------------------------------------------------------ Equity Index Class C Shares Year ended 7/31/08 $ 1,876 1.60% 1.19% 0.97% 4% Year ended 7/31/07 $ 2,223 1.61% 1.19% 0.83% 4% Year ended 7/31/06 $ 1,998 1.60% 1.19% 0.77% 6% Year ended 7/31/05 $ 2,301 1.63% 1.19% 0.90% 4% Year ended 7/31/04 $ 1,990 1.60% 1.23% 0.44% 14% - ------------------------------------------------------------------------------------------------------ Equity Index Select Shares Year ended 7/31/08 $ 11,175 0.68% 0.27% 1.87% 4% Year ended 7/31/07 $ 17,852 0.69% 0.27% 1.76% 4% Year ended 7/31/06 $ 17,558 0.68% 0.27% 1.67% 6% Year ended 7/31/05 $ 18,690 0.71% 0.27% 1.83% 4% 10/20/03(c) to 7/31/04 $ 14,315 0.69%** 0.27%** 1.32%** 14% - ------------------------------------------------------------------------------------------------------ Equity Index Preferred Shares Year ended 7/31/08 $ 56,847 0.75% 0.34% 1.81% 4% Year ended 7/31/07 $ 69,251 0.76% 0.34% 1.68% 4% Year ended 7/31/06 $ 64,939 0.75% 0.34% 1.62% 6% Year ended 7/31/05 $ 78,132 0.77% 0.34% 1.98% 4% 10/20/03(c) to 7/31/04 $165,845 0.76%** 0.34%** 1.31%** 14% - ------------------------------------------------------------------------------------------------------ Equity Index Trust Shares Year ended 7/31/08 $ 53,924 0.85% 0.44% 1.72% 4% Year ended 7/31/07 $ 68,661 0.86% 0.44% 1.59% 4% Year ended 7/31/06 $ 67,747 0.85% 0.44% 1.52% 6% Year ended 7/31/05 $ 76,295 0.87% 0.44% 1.69% 4% 10/20/03(c) to 7/31/04 $ 80,759 0.86%** 0.44%** 1.22%** 14% - ------------------------------------------------------------------------------------------------------ See notes to financial highlights and notes to financial statements. Spread 184-185 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ---------------------------------------------------------------------------------------------------------------------------- International Equity Institutional Shares Year ended 7/31/08 $15.55 0.45## (2.30) (1.85) (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) -- - ---------------------------------------------------------------------------------------------------------------------------- International Equity Class A Shares Year ended 7/31/08 $15.54 0.40## (2.28) (1.88) (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) -- - ---------------------------------------------------------------------------------------------------------------------------- International Equity Class B Shares Year ended 7/31/08 $15.21 0.29## (2.23) (1.94) (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) -- - ---------------------------------------------------------------------------------------------------------------------------- International Equity Class C Shares Year ended 7/31/08 $14.81 0.30## (2.18) (1.88) (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) -- - ---------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - -------------------------------------------------------------------------------------- International Equity Institutional Shares Year ended 7/31/08 (1.46) $12.24 (13.56)% Year ended 7/31/07 (0.38) $15.55 24.57%@ Year ended 7/31/06 (0.48) $12.83 23.86% Year ended 7/31/05 (0.20) $10.79 17.99% Year ended 7/31/04 (0.14) $ 9.32 21.56% - -------------------------------------------------------------------------------------- International Equity Class A Shares Year ended 7/31/08 (1.43) $12.23 (13.81)% Year ended 7/31/07 (0.37) $15.54 24.35%@ Year ended 7/31/06 (0.45) $12.84 23.53% Year ended 7/31/05 (0.17) $10.80 17.79% Year ended 7/31/04 (0.12) $ 9.33 21.11% - -------------------------------------------------------------------------------------- International Equity Class B Shares Year ended 7/31/08 (1.32) $11.95 (14.45)% Year ended 7/31/07 (0.33) $15.21 23.36%@ Year ended 7/31/06 (0.38) $12.64 22.59% Year ended 7/31/05 (0.11) $10.66 16.76% Year ended 7/31/04 (0.05) $ 9.23 20.43% - -------------------------------------------------------------------------------------- International Equity Class C Shares Year ended 7/31/08 (1.32) $11.61 (14.43)% Year ended 7/31/07 (0.33) $14.81 23.40%@ Year ended 7/31/06 (0.39) $12.31 22.61% Year ended 7/31/05 (0.11) $10.39 16.83% Year ended 7/31/04 (0.03) $ 8.99 20.32% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data -------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ----------------------------------------------------------------------------------------------------------- International Equity Institutional Shares Year ended 7/31/08 $420,993 1.36% 1.26% 3.13% 155% Year ended 7/31/07 $469,183 1.36% 1.35% 1.29% 20% Year ended 7/31/06 $434,572 1.37% 1.35% 1.24% 23% Year ended 7/31/05 $282,476 1.39% 1.35% 1.15% 21% Year ended 7/31/04 $324,852 1.42% 1.36% 0.61% 50% - ----------------------------------------------------------------------------------------------------------- International Equity Class A Shares Year ended 7/31/08 $ 20,160 1.60% 1.50% 2.80% 155% Year ended 7/31/07 $ 21,533 1.61% 1.60% 1.06% 20% Year ended 7/31/06 $ 27,725 1.62% 1.60% 1.03% 23% Year ended 7/31/05 $ 20,509 1.64% 1.60% 0.88% 21% Year ended 7/31/04 $ 22,999 1.67% 1.61% 0.51% 50% - ----------------------------------------------------------------------------------------------------------- International Equity Class B Shares Year ended 7/31/08 $ 2,177 2.36% 2.26% 2.10% 155% Year ended 7/31/07 $ 2,677 2.35% 2.35% 0.32% 20% Year ended 7/31/06 $ 2,060 2.37% 2.35% 0.32% 23% Year ended 7/31/05 $ 1,280 2.39% 2.35% 0.23% 21% Year ended 7/31/04 $ 793 2.42% 2.36% (0.21)% 50% - ----------------------------------------------------------------------------------------------------------- International Equity Class C Shares Year ended 7/31/08 $ 721 2.36% 2.26% 2.19% 155% Year ended 7/31/07 $ 878 2.35% 2.35% 0.16% 20% Year ended 7/31/06 $ 1,139 2.37% 2.35% 0.29% 23% Year ended 7/31/05 $ 962 2.39% 2.35% 0.26% 21% Year ended 7/31/04 $ 555 2.42% 2.36% (0.22)% 50% - ----------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 186-187 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - --------------------------------------------------------------------------------------------------------------------------------- Strategic Income Institutional Shares Year ended 7/31/08 $11.18 0.55## (1.41) (0.85) (0.61) (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) -- - --------------------------------------------------------------------------------------------------------------------------------- Strategic Income Class A Shares Year ended 7/31/08 $11.15 0.53## (1.41) (0.87) (0.58) (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(c) to 7/31/04 $11.65 0.17 (0.54) (0.37) (0.16) -- - --------------------------------------------------------------------------------------------------------------------------------- Strategic Income Class B Shares Year ended 7/31/08 $11.15 0.45## (1.41) (0.96) (0.50) (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(c) to 7/31/04 $11.65 0.15 (0.54) (0.39) (0.14) -- - --------------------------------------------------------------------------------------------------------------------------------- Strategic Income Class C Shares Year ended 7/31/08 $11.07 0.45## (1.40) (0.95) (0.50) (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) -- - --------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------ Strategic Income Institutional Shares Year ended 7/31/08 (0.94) $ 9.38 (8.30)% Year ended 7/31/07 (0.66) $11.18 4.97% Year ended 7/31/06 (0.55) $11.28 2.61% Year ended 7/31/05 (0.51) $11.54 8.21% Year ended 7/31/04 (0.52) $11.15 7.04% - ------------------------------------------------------------------------------------ Strategic Income Class A Shares Year ended 7/31/08 (0.91) $ 9.36 (8.46)% Year ended 7/31/07 (0.64) $11.15 4.72% Year ended 7/31/06 (0.52) $11.25 2.36% Year ended 7/31/05 (0.48) $11.51 7.96% 4/1/04(c) to 7/31/04 (0.16) $11.12 (3.15)%* - ------------------------------------------------------------------------------------ Strategic Income Class B Shares Year ended 7/31/08 (0.83) $ 9.36 (9.15)% Year ended 7/31/07 (0.55) $11.15 3.94% Year ended 7/31/06 (0.43) $11.25 1.60% Year ended 7/31/05 (0.40) $11.51 7.16% 4/1/04(c) to 7/31/04 (0.14) $11.12 (3.36)%* - ------------------------------------------------------------------------------------ Strategic Income Class C Shares Year ended 7/31/08 (0.83) $ 9.29 (9.12)% Year ended 7/31/07 (0.55) $11.07 3.98% Year ended 7/31/06 (0.43) $11.17 1.62% Year ended 7/31/05 (0.40) $11.43 7.12% Year ended 7/31/04 (0.41) $11.05 6.07% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ---------------------------------------------------------------------------------------------------------------- Strategic Income Institutional Shares Year ended 7/31/08 $ 90,639 1.35% 0.96% 5.28% 32% Year ended 7/31/07 $116,454 1.34% 1.06% 4.75% 18% Year ended 7/31/06 $107,130 1.34% 1.31% 4.56% 8% Year ended 7/31/05 $ 97,921 1.36% 1.36% 4.47% 17% Year ended 7/31/04 $ 90,995 1.33% 1.33% 4.64% 36% - ---------------------------------------------------------------------------------------------------------------- Strategic Income Class A Shares Year ended 7/31/08 $ 14,768 1.60% 1.21% 5.21% 32% Year ended 7/31/07 $ 4,904 1.59% 1.31% 4.49% 18% Year ended 7/31/06 $ 4,429 1.59% 1.56% 4.30% 8% Year ended 7/31/05 $ 4,423 1.62% 1.62% 4.25% 17% 4/1/04(c) to 7/31/04 $ 954 1.63%** 1.63%** 5.02%** 36% - ---------------------------------------------------------------------------------------------------------------- Strategic Income Class B Shares Year ended 7/31/08 $ 979 2.35% 1.96% 4.27% 32% Year ended 7/31/07 $ 1,528 2.34% 2.05% 3.76% 18% Year ended 7/31/06 $ 1,588 2.34% 2.31% 3.57% 8% Year ended 7/31/05 $ 1,909 2.37% 2.37% 3.49% 17% 4/1/04(c) to 7/31/04 $ 389 2.37%** 2.37%** 4.27%** 36% - ---------------------------------------------------------------------------------------------------------------- Strategic Income Class C Shares Year ended 7/31/08 $ 9,780 2.35% 1.96% 4.26% 32% Year ended 7/31/07 $ 15,676 2.34% 2.06% 3.75% 18% Year ended 7/31/06 $ 20,019 2.34% 2.32% 3.53% 8% Year ended 7/31/05 $ 29,176 2.35% 2.35% 3.47% 17% Year ended 7/31/04 $ 39,298 2.33% 2.33% 3.62% 36% - ---------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 188-189 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------- ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Institutional Shares Year ended 7/31/08 $16.58 0.20### (1.56)# (1.36) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Class A Shares Year ended 7/31/08 $16.51 0.18### (1.58)# (1.40) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Class B Shares Year ended 7/31/08 $16.11 0.06### (1.52)# (1.46) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Class C Shares Year ended 7/31/08 $16.11 0.05### (1.52)# (1.47) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Institutional Shares Year ended 7/31/08 $15.44 0.29### (1.32)# (1.03) (0.45) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Class A Shares Year ended 7/31/08 $15.42 0.27### (1.34)# (1.07) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Class B Shares Year ended 7/31/08 $15.34 0.17### (1.33)# (1.16) (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) - ----------------------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Class C Shares Year ended 7/31/08 $15.34 0.19### (1.36)# (1.17) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - -------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Institutional Shares Year ended 7/31/08 (1.65) $13.57 (9.45)% Year ended 7/31/07 (0.53) $16.58 17.59% Year ended 7/31/06 (0.51) $14.58 5.13% Year ended 7/31/05 (0.23) $14.36 16.91% Year ended 7/31/04 (0.31) $12.49 12.83% - -------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Class A Shares Year ended 7/31/08 (1.62) $13.49 (9.74)% Year ended 7/31/07 (0.50) $16.51 17.29% Year ended 7/31/06 (0.47) $14.53 4.80% Year ended 7/31/05 (0.20) $14.32 16.59% Year ended 7/31/04 (0.29) $12.45 12.49% - -------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Class B Shares Year ended 7/31/08 (1.53) $13.12 (10.41)% Year ended 7/31/07 (0.44) $16.11 16.44% Year ended 7/31/06 (0.41) $14.24 4.10% Year ended 7/31/05 (0.15) $14.08 15.73% Year ended 7/31/04 (0.28) $12.30 11.70% - -------------------------------------------------------------------------------------- LifeModel Aggressive(SM) Class C Shares Year ended 7/31/08 (1.53) $13.11 (10.44)% Year ended 7/31/07 (0.44) $16.11 16.45% Year ended 7/31/06 (0.41) $14.24 4.11% Year ended 7/31/05 (0.15) $14.08 15.80% Year ended 7/31/04 (0.27) $12.30 11.67% - -------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Institutional Shares Year ended 7/31/08 (1.56) $12.85 (7.76)% Year ended 7/31/07 (0.63) $15.44 15.16% Year ended 7/31/06 (0.55) $13.98 4.60% Year ended 7/31/05 (0.29) $13.91 13.87% Year ended 7/31/04 (0.33) $12.48 10.54% - -------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Class A Shares Year ended 7/31/08 (1.52) $12.83 (7.95)% Year ended 7/31/07 (0.58) $15.42 14.82% Year ended 7/31/06 (0.52) $13.96 4.36% Year ended 7/31/05 (0.26) $13.89 13.53% Year ended 7/31/04 (0.31) $12.47 10.32% - -------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Class B Shares Year ended 7/31/08 (1.46) $12.72 (8.65)% Year ended 7/31/07 (0.48) $15.34 13.97% Year ended 7/31/06 (0.42) $13.90 3.63% Year ended 7/31/05 (0.16) $13.83 12.68% Year ended 7/31/04 (0.23) $12.42 9.47% - -------------------------------------------------------------------------------------- LifeModel Moderately Aggressive(SM) Class C Shares Year ended 7/31/08 (1.46) $12.71 (8.73)% Year ended 7/31/07 (0.48) $15.34 13.98% Year ended 7/31/06 (0.42) $13.89 3.53% Year ended 7/31/05 (0.16) $13.83 12.75% Year ended 7/31/04 (0.23) $12.41 9.45% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive(SM) Institutional Shares Year ended 7/31/08 $107,929 0.49% 0.08% 1.31% 26% Year ended 7/31/07 $119,437 0.49% 0.08% 0.87% 14% Year ended 7/31/06 $101,365 0.48% 0.08% 1.38% 14% Year ended 7/31/05 $ 70,072 0.47% 0.08% 1.15% 35% Year ended 7/31/04 $ 52,085 0.51% 0.08% 1.09% 22% - ------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive(SM) Class A Shares Year ended 7/31/08 $ 44,892 0.74% 0.33% 1.19% 26% Year ended 7/31/07 $ 57,421 0.73% 0.33% 0.62% 14% Year ended 7/31/06 $ 50,416 0.72% 0.33% 1.15% 14% Year ended 7/31/05 $ 47,172 0.72% 0.33% 0.91% 35% Year ended 7/31/04 $ 38,249 0.76% 0.33% 0.80% 22% - ------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive(SM) Class B Shares Year ended 7/31/08 $ 13,202 1.49% 1.08% 0.39% 26% Year ended 7/31/07 $ 18,547 1.49% 1.08% (0.13)% 14% Year ended 7/31/06 $ 16,926 1.47% 1.08% 0.39% 14% Year ended 7/31/05 $ 16,203 1.47% 1.08% 0.15% 35% Year ended 7/31/04 $ 12,106 1.51% 1.08% 0.03% 22% - ------------------------------------------------------------------------------------------------------------------ LifeModel Aggressive(SM) Class C Shares Year ended 7/31/08 $ 2,236 1.49% 1.08% 0.36% 26% Year ended 7/31/07 $ 3,016 1.49% 1.08% (0.24)% 14% Year ended 7/31/06 $ 2,661 1.47% 1.08% 0.37% 14% Year ended 7/31/05 $ 2,164 1.47% 1.08% 0.14% 35% Year ended 7/31/04 $ 1,916 1.51% 1.08% 0.06% 22% - ------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive(SM) Institutional Shares Year ended 7/31/08 $135,474 0.48% 0.08% 2.06% 26% Year ended 7/31/07 $146,973 0.47% 0.08% 1.68% 20% Year ended 7/31/06 $135,542 0.45% 0.08% 2.09% 19% Year ended 7/31/05 $110,379 0.44% 0.08% 1.62% 35% Year ended 7/31/04 $ 82,264 0.45% 0.08% 1.56% 16% - ------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive(SM) Class A Shares Year ended 7/31/08 $ 98,658 0.73% 0.33% 1.89% 26% Year ended 7/31/07 $127,824 0.72% 0.33% 1.42% 20% Year ended 7/31/06 $128,564 0.70% 0.33% 1.86% 19% Year ended 7/31/05 $125,130 0.69% 0.33% 1.38% 35% Year ended 7/31/04 $ 94,739 0.70% 0.33% 1.32% 16% - ------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive(SM) Class B Shares Year ended 7/31/08 $ 43,036 1.48% 1.08% 1.20% 26% Year ended 7/31/07 $ 56,679 1.47% 1.08% 0.68% 20% Year ended 7/31/06 $ 53,395 1.45% 1.08% 1.10% 19% Year ended 7/31/05 $ 50,000 1.44% 1.08% 0.62% 35% Year ended 7/31/04 $ 39,636 1.45% 1.08% 0.53% 16% - ------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Aggressive(SM) Class C Shares Year ended 7/31/08 $ 6,077 1.48% 1.08% 1.35% 26% Year ended 7/31/07 $ 9,012 1.47% 1.08% 0.68% 20% Year ended 7/31/06 $ 8,196 1.45% 1.08% 1.11% 19% Year ended 7/31/05 $ 9,034 1.44% 1.08% 0.62% 35% Year ended 7/31/04 $ 8,046 1.45% 1.08% 0.48% 16% - ------------------------------------------------------------------------------------------------------------------ See notes to financial highlights and notes to financial statements. Spread 190-191 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate(SM) Institutional Shares Year ended 7/31/08 $13.34 0.36### (1.06)# (0.70) (0.45) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate(SM) Class A Shares Year ended 7/31/08 $13.32 0.33### (1.06)# (0.73) (0.41) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate(SM) Class B Shares Year ended 7/31/08 $13.25 0.24### (1.05)# (0.81) (0.31) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderate(SM) Class C Shares Year ended 7/31/08 $13.26 0.24### (1.06)# (0.82) (0.31) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative(SM) Institutional Shares Year ended 7/31/08 $11.95 0.37### (0.90)# (0.53) (0.42) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative(SM) Class A Shares Year ended 7/31/08 $11.93 0.33### (0.89)# (0.56) (0.39) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative(SM) Class B Shares Year ended 7/31/08 $11.88 0.25### (0.89)# (0.64) (0.29) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Moderately Conservative(SM) Class C Shares Year ended 7/31/08 $11.89 0.25### (0.89)# (0.64) (0.29) (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) - ------------------------------------------------------------------------------------------------------------------------------------ Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - --------------------------------------------------------------------------------------- LifeModel Moderate(SM) Institutional Shares Year ended 7/31/08 (1.21) $11.43 (6.02)% Year ended 7/31/07 (0.63) $13.34 12.60% Year ended 7/31/06 (0.57) $12.43 3.90% Year ended 7/31/05 (0.29) $12.52 10.79% Year ended 7/31/04 (0.33) $11.57 8.84% - --------------------------------------------------------------------------------------- LifeModel Moderate(SM) Class A Shares Year ended 7/31/08 (1.17) $11.42 (6.21)% Year ended 7/31/07 (0.60) $13.32 12.32% Year ended 7/31/06 (0.54) $12.41 3.65% Year ended 7/31/05 (0.26) $12.50 10.43% Year ended 7/31/04 (0.30) $11.56 8.53% - --------------------------------------------------------------------------------------- LifeModel Moderate(SM) Class B Shares Year ended 7/31/08 (1.07) $11.37 (6.87)% Year ended 7/31/07 (0.50) $13.25 11.47% Year ended 7/31/06 (0.45) $12.35 2.82% Year ended 7/31/05 (0.17) $12.45 9.58% Year ended 7/31/04 (0.23) $11.51 7.80% - --------------------------------------------------------------------------------------- LifeModel Moderate(SM) Class C Shares Year ended 7/31/08 (1.07) $11.37 (6.95)% Year ended 7/31/07 (0.50) $13.26 11.46% Year ended 7/31/06 (0.44) $12.36 2.88% Year ended 7/31/05 (0.17) $12.45 9.64% Year ended 7/31/04 (0.24) $11.51 7.76% - --------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Institutional Shares Year ended 7/31/08 (1.08) $10.34 (5.03)% Year ended 7/31/07 (0.68) $11.95 11.24% Year ended 7/31/06 (0.61) $11.36 3.39% Year ended 7/31/05 (0.36) $11.59 9.24% Year ended 7/31/04 (0.45) $10.95 7.39% - --------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Class A Shares Year ended 7/31/08 (1.05) $10.32 (5.30)% Year ended 7/31/07 (0.65) $11.93 10.96% Year ended 7/31/06 (0.58) $11.35 3.14% Year ended 7/31/05 (0.33) $11.58 8.97% Year ended 7/31/04 (0.42) $10.93 7.15% - --------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Class B Shares Year ended 7/31/08 (0.95) $10.29 (5.94)% Year ended 7/31/07 (0.56) $11.88 10.17% Year ended 7/31/06 (0.50) $11.30 2.28% Year ended 7/31/05 (0.25) $11.54 8.10% Year ended 7/31/04 (0.35) $10.90 6.35% - --------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Class C Shares Year ended 7/31/08 (0.95) $10.30 (5.93)% Year ended 7/31/07 (0.56) $11.89 10.08% Year ended 7/31/06 (0.49) $11.32 2.43% Year ended 7/31/05 (0.25) $11.54 8.18% Year ended 7/31/04 (0.35) $10.90 6.29% - --------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderate(SM) Institutional Shares Year ended 7/31/08 $312,435 0.43% 0.08% 2.85% 23% Year ended 7/31/07 $369,880 0.44% 0.08% 2.48% 18% Year ended 7/31/06 $369,903 0.43% 0.08% 2.70% 30% Year ended 7/31/05 $340,163 0.42% 0.08% 2.17% 41% Year ended 7/31/04 $315,055 0.43% 0.08% 1.76% 14% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderate(SM) Class A Shares Year ended 7/31/08 $ 71,338 0.68% 0.33% 2.67% 23% Year ended 7/31/07 $ 92,719 0.69% 0.33% 2.23% 18% Year ended 7/31/06 $100,588 0.68% 0.33% 2.46% 30% Year ended 7/31/05 $106,044 0.67% 0.33% 1.92% 41% Year ended 7/31/04 $ 98,293 0.68% 0.33% 1.79% 14% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderate(SM) Class B Shares Year ended 7/31/08 $ 32,003 1.43% 1.08% 1.93% 23% Year ended 7/31/07 $ 43,013 1.44% 1.08% 1.48% 18% Year ended 7/31/06 $ 43,234 1.43% 1.08% 1.70% 30% Year ended 7/31/05 $ 44,111 1.42% 1.08% 1.17% 41% Year ended 7/31/04 $ 36,778 1.43% 1.08% 1.05% 14% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderate(SM) Class C Shares Year ended 7/31/08 $ 4,333 1.43% 1.08% 1.92% 23% Year ended 7/31/07 $ 6,158 1.44% 1.08% 1.48% 18% Year ended 7/31/06 $ 6,495 1.43% 1.08% 1.70% 30% Year ended 7/31/05 $ 7,912 1.42% 1.08% 1.16% 41% Year ended 7/31/04 $ 7,442 1.43% 1.08% 1.04% 14% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Institutional Shares Year ended 7/31/08 $ 43,093 0.53% 0.08% 3.28% 25% Year ended 7/31/07 $ 41,336 0.54% 0.08% 2.89% 30% Year ended 7/31/06 $ 42,683 0.50% 0.08% 3.05% 22% Year ended 7/31/05 $ 38,606 0.47% 0.08% 2.44% 38% Year ended 7/31/04 $ 38,097 0.49% 0.08% 2.33% 19% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Class A Shares Year ended 7/31/08 $ 25,200 0.79% 0.33% 2.92% 25% Year ended 7/31/07 $ 35,676 0.79% 0.33% 2.63% 30% Year ended 7/31/06 $ 37,479 0.75% 0.33% 2.80% 22% Year ended 7/31/05 $ 41,446 0.72% 0.33% 2.18% 38% Year ended 7/31/04 $ 40,851 0.74% 0.33% 2.09% 19% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Class B Shares Year ended 7/31/08 $ 13,891 1.54% 1.08% 2.25% 25% Year ended 7/31/07 $ 18,839 1.54% 1.08% 1.89% 30% Year ended 7/31/06 $ 20,488 1.50% 1.08% 2.05% 22% Year ended 7/31/05 $ 22,752 1.47% 1.08% 1.44% 38% Year ended 7/31/04 $ 21,122 1.49% 1.08% 1.31% 19% - ------------------------------------------------------------------------------------------------------------------- LifeModel Moderately Conservative(SM) Class C Shares Year ended 7/31/08 $ 2,071 1.54% 1.08% 2.23% 25% Year ended 7/31/07 $ 2,755 1.54% 1.08% 1.88% 30% Year ended 7/31/06 $ 3,058 1.50% 1.08% 2.05% 22% Year ended 7/31/05 $ 4,029 1.47% 1.08% 1.42% 38% Year ended 7/31/04 $ 3,576 1.49% 1.08% 1.26% 19% - ------------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 192-193 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative(SM) Institutional Shares Year ended 7/31/08 $10.99 0.43### (0.80)# (0.37) (0.43) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative(SM) Class A Shares Year ended 7/31/08 $10.97 0.39### (0.79)# (0.40) (0.40) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative(SM) Class B Shares Year ended 7/31/08 $10.95 0.31### (0.80)# (0.49) (0.33) (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) - ------------------------------------------------------------------------------------------------------------------------------------ LifeModel Conservative(SM) Class C Shares Year ended 7/31/08 $10.95 0.31### (0.79)# (0.48) (0.33) (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) - ------------------------------------------------------------------------------------------------------------------------------------ Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - --------------------------------------------------------------------------------------- LifeModel Conservative(SM) Institutional Shares Year ended 7/31/08 (0.73) $ 9.89 (3.67)% Year ended 7/31/07 (0.63) $10.99 8.58% Year ended 7/31/06 (0.51) $10.72 2.88% Year ended 7/31/05 (0.41) $10.92 6.38% Year ended 7/31/04 (0.45) $10.66 5.44% - --------------------------------------------------------------------------------------- LifeModel Conservative(SM) Class A Shares Year ended 7/31/08 (0.70) $ 9.87 (3.93)% Year ended 7/31/07 (0.60) $10.97 8.33% Year ended 7/31/06 (0.48) $10.70 2.62% Year ended 7/31/05 (0.38) $10.90 6.13% Year ended 7/31/04 (0.43) $10.64 5.11% - --------------------------------------------------------------------------------------- LifeModel Conservative(SM) Class B Shares Year ended 7/31/08 (0.63) $ 9.83 (4.78)% Year ended 7/31/07 (0.51) $10.95 7.53% Year ended 7/31/06 (0.40) $10.67 1.83% Year ended 7/31/05 (0.30) $10.87 5.34% Year ended 7/31/04 (0.35) $10.61 4.37% - --------------------------------------------------------------------------------------- LifeModel Conservative(SM) Class C Shares Year ended 7/31/08 (0.63) $ 9.84 (4.70)% Year ended 7/31/07 (0.52) $10.95 7.59% Year ended 7/31/06 (0.39) $10.67 1.72% Year ended 7/31/05 (0.30) $10.88 5.30% Year ended 7/31/04 (0.36) $10.61 4.34% - --------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------- LifeModel Conservative(SM) Institutional Shares Year ended 7/31/08 $ 28,215 0.62% 0.08% 4.04% 23% Year ended 7/31/07 $ 24,570 0.64% 0.08% 3.69% 24% Year ended 7/31/06 $ 24,385 0.58% 0.08% 3.72% 15% Year ended 7/31/05 $ 22,236 0.54% 0.08% 3.00% 46% Year ended 7/31/04 $ 14,201 0.58% 0.08% 2.79% 27% - ------------------------------------------------------------------------------------------------------------------- LifeModel Conservative(SM) Class A Shares Year ended 7/31/08 $ 12,908 0.88% 0.33% 3.68% 23% Year ended 7/31/07 $ 15,083 0.89% 0.33% 3.44% 24% Year ended 7/31/06 $ 16,138 0.82% 0.33% 3.45% 15% Year ended 7/31/05 $ 20,014 0.79% 0.33% 2.76% 46% Year ended 7/31/04 $ 20,461 0.84% 0.33% 2.59% 27% - ------------------------------------------------------------------------------------------------------------------- LifeModel Conservative(SM) Class B Shares Year ended 7/31/08 $ 7,253 1.63% 1.08% 2.97% 23% Year ended 7/31/07 $ 9,242 1.64% 1.07% 2.69% 24% Year ended 7/31/06 $ 10,208 1.57% 1.08% 2.69% 15% Year ended 7/31/05 $ 12,688 1.54% 1.08% 2.01% 46% Year ended 7/31/04 $ 13,524 1.58% 1.08% 1.80% 27% - ------------------------------------------------------------------------------------------------------------------- LifeModel Conservative(SM) Class C Shares Year ended 7/31/08 $ 2,250 1.63% 1.08% 2.91% 23% Year ended 7/31/07 $ 3,091 1.64% 1.07% 2.67% 24% Year ended 7/31/06 $ 3,816 1.57% 1.08% 2.68% 15% Year ended 7/31/05 $ 5,304 1.54% 1.08% 2.01% 46% Year ended 7/31/04 $ 6,563 1.58% 1.08% 1.81% 27% - ------------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 194-195 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ ---------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investments from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ------------------------------------------------------------------------------------------------------------------------------------ High Yield Bond Institutional Shares Year ended 7/31/08 $ 9.57 0.73## (0.44) 0.29 (0.72) -- 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 Year ended 7/31/08 $ 9.57 0.69## (0.46) 0.23 (0.68) -- 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 Year ended 7/31/08 $ 9.56 0.64## (0.45) 0.19 (0.62) -- 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 Year ended 7/31/08 $ 9.57 0.64## (0.45) 0.19 (0.63) -- 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 Year ended 7/31/08 $ 9.68 0.48## (0.64) (0.16) (0.49) -- 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) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total Return Bond Class A Shares Year ended 7/31/08 $ 9.67 0.46## (0.64) (0.18) (0.46) -- 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) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total Return Bond Class B Shares Year ended 7/31/08 $ 9.68 0.39## (0.65) (0.26) (0.39) -- 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) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total Return Bond Class C Shares Year ended 7/31/08 $ 9.68 0.39## (0.64) (0.25) (0.39) -- 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) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - --------------------------------------------------------------------------------------- High Yield Bond Institutional Shares Year ended 7/31/08 (0.72) $ 9.14 2.98% Year ended 7/31/07 (0.74) $ 9.57 5.85% Year ended 7/31/06 (0.42) $ 9.74 1.59%* - --------------------------------------------------------------------------------------- High Yield Bond Class A Shares Year ended 7/31/08 (0.68) $ 9.12 2.38% Year ended 7/31/07 (0.72) $ 9.57 5.47% Year ended 7/31/06 (0.40) $ 9.74 1.44%* - --------------------------------------------------------------------------------------- High Yield Bond Class B Shares Year ended 7/31/08 (0.62) $ 9.13 1.94% Year ended 7/31/07 (0.65) $ 9.56 4.83% Year ended 7/31/06 (0.36) $ 9.73 0.91%* - --------------------------------------------------------------------------------------- High Yield Bond Class C Shares Year ended 7/31/08 (0.63) $ 9.13 2.00% Year ended 7/31/07 (0.65) $ 9.57 4.72% Year ended 7/31/06 (0.36) $ 9.74 0.94%* - --------------------------------------------------------------------------------------- Total Return Bond Institutional Shares Year ended 7/31/08 (0.49) $ 9.03 (1.86)% Year ended 7/31/07 (0.46) $ 9.68 4.83%@ Year ended 7/31/06 (0.51) $ 9.68 1.21% Year ended 7/31/05 (0.39) $10.07 4.43% Year ended 7/31/04 (0.36) $10.02 4.26% - --------------------------------------------------------------------------------------- Total Return Bond Class A Shares Year ended 7/31/08 (0.46) $ 9.03 (1.99)% Year ended 7/31/07 (0.44) $ 9.67 4.45%@ Year ended 7/31/06 (0.48) $ 9.68 0.97% Year ended 7/31/05 (0.36) $10.07 4.17% Year ended 7/31/04 (0.34) $10.02 4.00% - --------------------------------------------------------------------------------------- Total Return Bond Class B Shares Year ended 7/31/08 (0.39) $ 9.03 (2.80)% Year ended 7/31/07 (0.36) $ 9.68 3.75%@ Year ended 7/31/06 (0.41) $ 9.68 0.20% Year ended 7/31/05 (0.28) $10.07 3.38% Year ended 7/31/04 (0.26) $10.02 3.19% - --------------------------------------------------------------------------------------- Total Return Bond Class C Shares Year ended 7/31/08 (0.39) $ 9.04 (2.72)% Year ended 7/31/07 (0.36) $ 9.68 3.65%@ Year ended 7/31/06 (0.41) $ 9.69 0.30% Year ended 7/31/05 (0.28) $10.07 3.37% Year ended 7/31/04 (0.26) $10.02 3.20% - --------------------------------------------------------------------------------------- Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------- High Yield Bond Institutional Shares Year ended 7/31/08 $ 50,153 1.15% 0.74% 7.65% 36% Year ended 7/31/07 $ 68,193 1.14% 0.74% 7.12% 42% Year ended 7/31/06 $ 66,033 1.15%** 0.74%** 6.77%** 41% - ------------------------------------------------------------------------------------------------------------------- High Yield Bond Class A Shares Year ended 7/31/08 $ 206 1.40% 0.99% 7.17% 36% Year ended 7/31/07 $ 175 1.39% 0.99% 6.83% 42% Year ended 7/31/06 $ 227 2.98%** 0.99%** 6.74%** 41% - ------------------------------------------------------------------------------------------------------------------- High Yield Bond Class B Shares Year ended 7/31/08 $ 155 2.15% 1.74% 6.67% 36% Year ended 7/31/07 $ 156 2.15% 1.74% 6.12% 42% Year ended 7/31/06 $ 96 7.16%** 1.74%** 5.98%** 41% - ------------------------------------------------------------------------------------------------------------------- High Yield Bond Class C Shares Year ended 7/31/08 $ 114 2.15% 1.74% 6.67% 36% Year ended 7/31/07 $ 127 2.15% 1.74% 6.04% 42% Year ended 7/31/06 $ 55 8.04%** 1.74%** 5.93%** 41% - ------------------------------------------------------------------------------------------------------------------- Total Return Bond Institutional Shares Year ended 7/31/08 $559,548 0.88% 0.69% 5.03% 36% Year ended 7/31/07 $230,154 0.91% 0.72% 4.57% 65% Year ended 7/31/06 $252,145 0.90% 0.74% 4.23% 352% Year ended 7/31/05 $292,043 0.91% 0.78% 3.28% 385% Year ended 7/31/04 $277,706 0.90% 0.79% 2.75% 389% - ------------------------------------------------------------------------------------------------------------------- Total Return Bond Class A Shares Year ended 7/31/08 $ 20,497 1.13% 0.94% 4.78% 36% Year ended 7/31/07 $ 8,223 1.16% 0.97% 4.32% 65% Year ended 7/31/06 $ 11,657 1.15% 0.99% 3.97% 352% Year ended 7/31/05 $ 15,876 1.16% 1.03% 3.01% 385% Year ended 7/31/04 $ 22,559 1.15% 1.04% 2.51% 389% - ------------------------------------------------------------------------------------------------------------------- Total Return Bond Class B Shares Year ended 7/31/08 $ 3,490 1.88% 1.69% 4.02% 36% Year ended 7/31/07 $ 2,151 1.91% 1.72% 3.57% 65% Year ended 7/31/06 $ 2,655 1.91% 1.74% 3.20% 352% Year ended 7/31/05 $ 3,907 1.91% 1.78% 2.27% 385% Year ended 7/31/04 $ 4,512 1.90% 1.79% 1.76% 389% - ------------------------------------------------------------------------------------------------------------------- Total Return Bond Class C Shares Year ended 7/31/08 $ 1,528 1.88% 1.69% 4.07% 36% Year ended 7/31/07 $ 225 1.90% 1.72% 3.57% 65% Year ended 7/31/06 $ 315 1.91% 1.74% 3.16% 352% Year ended 7/31/05 $ 649 1.91% 1.78% 2.26% 385% Year ended 7/31/04 $ 768 1.90% 1.79% 1.76% 389% - ------------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 196-197 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from ------------------------------ -------------------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Paid-in Realized of Period Income/(Loss) Transactions Operations Income Capital Gains - ----------------------------------------------------------------------------------------------------------------------------------- Short Term Bond Institutional Shares Year ended 7/31/08 $9.32 0.38## (0.03) 0.35 (0.38) -- -- 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) -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Short Term Bond Class A Shares Year ended 7/31/08 $9.31 0.35## (0.01) 0.34 (0.36) -- -- 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) -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Short Term Bond Class C Shares Year ended 7/31/08 $9.32 0.28## (0.02) 0.26 (0.30) -- -- 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) -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ------------------------------------------------------------------------------------ Short Term Bond Institutional Shares Year ended 7/31/08 (0.38) $9.29 3.80% Year ended 7/31/07 (0.39) $9.32 5.08% Year ended 7/31/06 (0.37) $9.25 2.75% Year ended 7/31/05 (0.32) $9.37 1.16% Year ended 7/31/04 (0.31) $9.57 1.31% - ------------------------------------------------------------------------------------ Short Term Bond Class A Shares Year ended 7/31/08 (0.36) $9.29 3.67% Year ended 7/31/07 (0.37) $9.31 4.70% Year ended 7/31/06 (0.35) $9.25 2.60% Year ended 7/31/05 (0.30) $9.36 1.00% Year ended 7/31/04 (0.29) $9.56 1.12% - ------------------------------------------------------------------------------------ Short Term Bond Class C Shares Year ended 7/31/08 (0.30) $9.28 2.76% Year ended 7/31/07 (0.30) $9.32 3.93% Year ended 7/31/06 (0.28) $9.25 1.81% Year ended 7/31/05 (0.22) $9.36 0.23% Year ended 7/31/04 (0.22) $9.56 0.39% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data --------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------- Short Term Bond Institutional Shares Year ended 7/31/08 $241,776 0.79% 0.64% 4.01% 33% Year ended 7/31/07 $267,348 0.80% 0.64% 3.99% 75% Year ended 7/31/06 $258,423 0.78% 0.67% 3.33% 53% Year ended 7/31/05 $333,909 0.77% 0.73% 2.35% 68% Year ended 7/31/04 $495,271 0.77% 0.74% 1.96% 90% - ------------------------------------------------------------------------------------------------------- Short Term Bond Class A Shares Year ended 7/31/08 $ 7,127 1.04% 0.89% 3.73% 33% Year ended 7/31/07 $ 9,704 1.05% 0.89% 3.72% 75% Year ended 7/31/06 $ 12,362 1.03% 0.92% 3.07% 53% Year ended 7/31/05 $ 17,117 1.02% 0.98% 2.10% 68% Year ended 7/31/04 $ 28,262 1.02% 0.89% 1.81% 90% - ------------------------------------------------------------------------------------------------------- Short Term Bond Class C Shares Year ended 7/31/08 $ 171 1.79% 1.64% 2.98% 33% Year ended 7/31/07 $ 160 1.81% 1.64% 2.97% 75% Year ended 7/31/06 $ 205 1.79% 1.67% 2.31% 53% Year ended 7/31/05 $ 362 1.77% 1.73% 1.34% 68% Year ended 7/31/04 $ 526 1.77% 1.74% 0.97% 90% - ------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 198-199 Fifth Third Funds Financial Highlights (For a share of beneficial interest outstanding throughout each period) Change in Net Assets Less Dividends and Resulting from Operations Distributions from --------------------------- --------------------- Net Realized and Unrealized Change in Net Asset Gains/(Losses) Net Assets Value, Net from Resulting Net Net Beginning Investment Investment from Investment Realized of Period Income/(Loss) Transactions Operations Income Gains - ----------------------------------------------------------------------------------------------------------------------------------- Municipal Bond Institutional Shares Year ended 7/31/08 $ 9.32 0.36## (0.11) 0.25 (0.35) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Municipal Bond Class A Shares Year ended 7/31/08 $ 9.36 0.33## (0.09) 0.24 (0.33) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Municipal Bond Class B Shares Year ended 7/31/08 $ 9.29 0.26## (0.10) 0.16 (0.26) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Municipal Bond Class C Shares Year ended 7/31/08 $ 9.32 0.26## (0.10) 0.16 (0.27) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Institutional Shares Year ended 7/31/08 $ 9.95 0.36## 0.02 0.38 (0.36) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Class A Shares Year ended 7/31/08 $ 9.95 0.34## 0.03 0.37 (0.34) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Class B Shares Year ended 7/31/08 $ 9.94 0.34## 0.02 0.36 (0.33) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Class C Shares Year ended 7/31/08 $ 9.95 0.26## 0.02 0.28 (0.27) (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) - ----------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - --------------------------------------------------------------------------------------- Municipal Bond Institutional Shares Year ended 7/31/08 (0.38) $ 9.19 2.75% Year ended 7/31/07 (0.47) $ 9.32 4.04%@ Year ended 7/31/06 (0.81) $ 9.40 1.49% Year ended 7/31/05 (0.79) $10.07 4.53% Year ended 7/31/04 (0.60) $10.40 4.84% - --------------------------------------------------------------------------------------- Municipal Bond Class A Shares Year ended 7/31/08 (0.36) $ 9.24 2.61% Year ended 7/31/07 (0.44) $ 9.36 3.76%@ Year ended 7/31/06 (0.79) $ 9.45 1.32% Year ended 7/31/05 (0.76) $10.11 4.35% Year ended 7/31/04 (0.57) $10.43 4.35% - --------------------------------------------------------------------------------------- Municipal Bond Class B Shares Year ended 7/31/08 (0.29) $ 9.16 1.78% Year ended 7/31/07 (0.37) $ 9.29 2.98%@ Year ended 7/31/06 (0.71) $ 9.37 0.47% Year ended 7/31/05 (0.68) $10.04 3.50% Year ended 7/31/04 (0.49) $10.37 3.71% - --------------------------------------------------------------------------------------- Municipal Bond Class C Shares Year ended 7/31/08 (0.30) $ 9.18 1.69% Year ended 7/31/07 (0.36) $ 9.32 3.04%@ Year ended 7/31/06 (0.71) $ 9.39 0.56% Year ended 7/31/05 (0.68) $10.05 3.45% Year ended 7/31/04 (0.49) $10.38 3.71% - --------------------------------------------------------------------------------------- Intermediate Municipal Bond Institutional Shares Year ended 7/31/08 (0.39) $ 9.94 3.83% Year ended 7/31/07 (0.39) $ 9.95 3.59% Year ended 7/31/06 (0.49) $ 9.99 1.43% Year ended 7/31/05 (0.50) $10.33 2.83% Year ended 7/31/04 (0.45) $10.53 3.27% - --------------------------------------------------------------------------------------- Intermediate Municipal Bond Class A Shares Year ended 7/31/08 (0.37) $ 9.95 3.69% Year ended 7/31/07 (0.37) $ 9.95 3.23% Year ended 7/31/06 (0.46) $10.00 1.27% Year ended 7/31/05 (0.47) $10.33 2.44% Year ended 7/31/04 (0.43) $10.54 3.03% - --------------------------------------------------------------------------------------- Intermediate Municipal Bond Class B Shares Year ended 7/31/08 (0.36) $ 9.94 3.60% Year ended 7/31/07 (0.37) $ 9.94 3.34% Year ended 7/31/06 (0.46) $ 9.98 1.28% Year ended 7/31/05 (0.47) $10.31 2.54% Year ended 7/31/04 (0.39) $10.51 2.54% - --------------------------------------------------------------------------------------- Intermediate Municipal Bond Class C Shares Year ended 7/31/08 (0.30) $ 9.93 2.77% Year ended 7/31/07 (0.29) $ 9.95 2.55% Year ended 7/31/06 (0.39) $ 9.99 0.41% Year ended 7/31/05 (0.39) $10.33 1.76% Year ended 7/31/04 (0.34) $10.53 2.29% - --------------------------------------------------------------------------------------- Ratios/Supplemental Data -------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - ------------------------------------------------------------------------------------------------------------------- Municipal Bond Institutional Shares Year ended 7/31/08 $ 41,946 1.07% 0.61% 3.82% 58% Year ended 7/31/07 $ 44,234 1.13% 0.61% 3.87% 27% Year ended 7/31/06 $ 39,514 1.06% 0.65% 3.87% 87% Year ended 7/31/05 $ 49,802 1.04% 0.78% 3.86% 83% Year ended 7/31/04 $ 57,638 0.98% 0.79% 4.05% 35% - ------------------------------------------------------------------------------------------------------------------- Municipal Bond Class A Shares Year ended 7/31/08 $ 1,132 1.32% 0.86% 3.57% 58% Year ended 7/31/07 $ 1,231 1.38% 0.86% 3.63% 27% Year ended 7/31/06 $ 1,378 1.31% 0.90% 3.62% 87% Year ended 7/31/05 $ 1,637 1.29% 1.03% 3.63% 83% Year ended 7/31/04 $ 2,462 1.24% 1.04% 3.81% 35% - ------------------------------------------------------------------------------------------------------------------- Municipal Bond Class B Shares Year ended 7/31/08 $ 621 2.08% 1.61% 2.82% 58% Year ended 7/31/07 $ 864 2.13% 1.61% 2.88% 27% Year ended 7/31/06 $ 1,016 2.06% 1.66% 2.86% 87% Year ended 7/31/05 $ 1,479 2.04% 1.78% 2.85% 83% Year ended 7/31/04 $ 1,528 1.99% 1.79% 3.06% 35% - ------------------------------------------------------------------------------------------------------------------- Municipal Bond Class C Shares Year ended 7/31/08 $ 29 2.08% 1.61% 2.81% 58% Year ended 7/31/07 $ 43 2.12% 1.61% 2.89% 27% Year ended 7/31/06 $ 87 2.06% 1.66% 2.86% 87% Year ended 7/31/05 $ 179 2.03% 1.78% 2.91% 83% Year ended 7/31/04 $ 363 1.98% 1.79% 3.05% 35% - ------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Institutional Shares Year ended 7/31/08 $128,343 0.85% 0.65% 3.60% 49% Year ended 7/31/07 $149,016 0.89% 0.68% 3.63% 37% Year ended 7/31/06 $164,537 0.87% 0.71% 3.53% 60% Year ended 7/31/05 $205,078 0.86% 0.70% 3.45% 60% Year ended 7/31/04 $255,026 0.84% 0.73% 3.42% 84% - ------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Class A Shares Year ended 7/31/08 $ 1,732 1.10% 0.90% 3.35% 49% Year ended 7/31/07 $ 2,038 1.15% 0.94% 3.37% 37% Year ended 7/31/06 $ 2,559 1.12% 0.96% 3.28% 60% Year ended 7/31/05 $ 3,064 1.10% 0.95% 3.20% 60% Year ended 7/31/04 $ 4,479 1.09% 0.98% 3.17% 84% - ------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Class B Shares Year ended 7/31/08 $ 357 1.85% 0.90% 3.35% 49% Year ended 7/31/07 $ 358 1.90% 0.94% 3.37% 37% Year ended 7/31/06 $ 446 1.87% 0.96% 3.27% 60% Year ended 7/31/05 $ 987 1.86% 0.95% 3.20% 60% Year ended 7/31/04 $ 1,269 1.84% 1.44% 2.71% 84% - ------------------------------------------------------------------------------------------------------------------- Intermediate Municipal Bond Class C Shares Year ended 7/31/08 $ 124 1.85% 1.65% 2.60% 49% Year ended 7/31/07 $ 101 1.89% 1.67% 2.64% 37% Year ended 7/31/06 $ 89 1.87% 1.71% 2.52% 60% Year ended 7/31/05 $ 157 1.85% 1.69% 2.45% 60% Year ended 7/31/04 $ 366 1.83% 1.73% 2.42% 84% - ------------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 200-201 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 - ------------------------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Institutional Shares Year ended 7/31/08 $ 9.97 0.34## 0.05 0.39 (0.34) (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) - ------------------------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Class A Shares Year ended 7/31/08 $ 9.98 0.32## 0.03 0.35 (0.31) (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) - ------------------------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Class B Shares Year ended 7/31/08 $ 9.75 0.24## 0.03 0.27 (0.24) (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) - ------------------------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Class C Shares Year ended 7/31/08 $ 9.94 0.24## 0.04 0.28 (0.24) (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) - ------------------------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Institutional Shares Year ended 7/31/08 $ 9.90 0.29## 0.13 0.42 (0.29) -- 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) - ------------------------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Class A Shares Year ended 7/31/08 $ 9.88 0.28## 0.14 0.42 (0.28) -- 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) - ------------------------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Class B Shares Year ended 7/31/08 $ 9.88 0.19## 0.14 0.33 (0.20) -- 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) - ------------------------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Class C Shares Year ended 7/31/08 $ 9.89 0.19## 0.14 0.33 (0.20) -- 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) - ------------------------------------------------------------------------------------------------------------------------------- Net Total Total Asset Return Dividends Value, (excludes and End of sales Distributions Period charge) - ---------------------------------------------------------------------------------- Ohio Municipal Bond Institutional Shares Year ended 7/31/08 (0.38) $ 9.98 3.95% Year ended 7/31/07 (0.36) $ 9.97 3.32%@ Year ended 7/31/06 (0.39) $10.00 1.46% Year ended 7/31/05 (0.42) $10.24 2.61% Year ended 7/31/04 (0.38) $10.39 3.66% - ---------------------------------------------------------------------------------- Ohio Municipal Bond Class A Shares Year ended 7/31/08 (0.35) $ 9.98 3.58% Year ended 7/31/07 (0.33) $ 9.98 3.06%@ Year ended 7/31/06 (0.36) $10.01 1.19% Year ended 7/31/05 (0.39) $10.25 2.36% Year ended 7/31/04 (0.36) $10.39 3.40% - ---------------------------------------------------------------------------------- Ohio Municipal Bond Class B Shares Year ended 7/31/08 (0.28) $ 9.74 2.84% Year ended 7/31/07 (0.26) $ 9.75 2.26%@ Year ended 7/31/06 (0.29) $ 9.78 0.37% Year ended 7/31/05 (0.32) $10.03 1.66% Year ended 7/31/04 (0.28) $10.18 2.62% - ---------------------------------------------------------------------------------- Ohio Municipal Bond Class C Shares Year ended 7/31/08 (0.28) $ 9.94 2.86% Year ended 7/31/07 (0.26) $ 9.94 2.19%@ Year ended 7/31/06 (0.28) $ 9.97 0.44% Year ended 7/31/05 (0.31) $10.20 1.60% Year ended 7/31/04 (0.28) $10.35 2.65% - ---------------------------------------------------------------------------------- Michigan Municipal Bond Institutional Shares Year ended 7/31/08 (0.29) $10.03 4.32% Year ended 7/31/07 (0.30) $ 9.90 3.17% Year ended 7/31/06 (0.28) $ 9.88 1.35% Year ended 7/31/05 (0.29) $10.03 1.49% Year ended 7/31/04 (0.29) $10.17 1.43% - ---------------------------------------------------------------------------------- Michigan Municipal Bond Class A Shares Year ended 7/31/08 (0.28) $10.02 4.27% Year ended 7/31/07 (0.29) $ 9.88 3.05% Year ended 7/31/06 (0.27) $ 9.87 1.20% Year ended 7/31/05 (0.27) $10.02 1.33% Year ended 7/31/04 (0.28) $10.16 1.37% - ---------------------------------------------------------------------------------- Michigan Municipal Bond Class B Shares Year ended 7/31/08 (0.20) $10.01 3.36% Year ended 7/31/07 (0.20) $ 9.88 2.06% Year ended 7/31/06 (0.18) $ 9.88 0.42% Year ended 7/31/05 (0.18) $10.02 0.46% Year ended 7/31/04 (0.19) $10.16 0.43% - ---------------------------------------------------------------------------------- Michigan Municipal Bond Class C Shares Year ended 7/31/08 (0.20) $10.02 3.33% Year ended 7/31/07 (0.20) $ 9.89 2.16% Year ended 7/31/06 (0.18) $ 9.88 0.43% Year ended 7/31/05 (0.18) $10.02 0.43% Year ended 7/31/04 (0.19) $10.16 0.48% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data -------------------------------------------------------------- Ratios of Ratios of Net Expenses Expenses Ratios of Net Assets, to to Investment End of Average Average Income Portfolio Period Net Net to Average Turnover (000's) Assets (a) Assets (b) Net Assets Rate (d) - -------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Institutional Shares Year ended 7/31/08 $ 77,338 0.89% 0.79% 3.39% 42% Year ended 7/31/07 $ 81,780 0.93% 0.79% 3.50% 12% Year ended 7/31/06 $ 85,716 0.90% 0.80% 3.54% 25% Year ended 7/31/05 $104,554 0.87% 0.79% 3.37% 19% Year ended 7/31/04 $126,343 0.86% 0.78% 3.39% 15% - -------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Class A Shares Year ended 7/31/08 $ 13,084 1.14% 1.04% 3.15% 42% Year ended 7/31/07 $ 15,451 1.18% 1.04% 3.25% 12% Year ended 7/31/06 $ 23,032 1.15% 1.05% 3.29% 25% Year ended 7/31/05 $ 27,870 1.12% 1.04% 3.13% 19% Year ended 7/31/04 $ 26,962 1.11% 1.03% 3.14% 15% - -------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Class B Shares Year ended 7/31/08 $ 2,013 1.89% 1.79% 2.40% 42% Year ended 7/31/07 $ 2,682 1.93% 1.79% 2.50% 12% Year ended 7/31/06 $ 3,426 1.90% 1.80% 2.54% 25% Year ended 7/31/05 $ 4,279 1.87% 1.79% 2.37% 19% Year ended 7/31/04 $ 4,714 1.86% 1.78% 2.39% 15% - -------------------------------------------------------------------------------------------------------------- Ohio Municipal Bond Class C Shares Year ended 7/31/08 $ 557 1.89% 1.79% 2.40% 42% Year ended 7/31/07 $ 734 1.93% 1.79% 2.50% 12% Year ended 7/31/06 $ 1,217 1.90% 1.80% 2.50% 25% Year ended 7/31/05 $ 3,820 1.87% 1.79% 2.37% 19% Year ended 7/31/04 $ 4,328 1.86% 1.78% 2.39% 15% - -------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Institutional Shares Year ended 7/31/08 $ 38,692 0.92% 0.68% 2.92% 25% Year ended 7/31/07 $ 43,905 0.98% 0.68% 3.00% 28% Year ended 7/31/06 $ 50,670 0.88% 0.68% 2.84% 12% Year ended 7/31/05 $ 74,099 0.80% 0.68% 2.70% 11% Year ended 7/31/04 $105,361 0.78% 0.69% 2.75% 21% - -------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Class A Shares Year ended 7/31/08 $ 2,621 1.18% 0.83% 2.77% 25% Year ended 7/31/07 $ 4,511 1.22% 0.83% 2.85% 28% Year ended 7/31/06 $ 4,728 1.13% 0.83% 2.70% 12% Year ended 7/31/05 $ 4,713 1.05% 0.83% 2.55% 11% Year ended 7/31/04 $ 7,294 1.03% 0.84% 2.60% 21% - -------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Class B Shares Year ended 7/31/08 $ 553 1.92% 1.68% 1.92% 25% Year ended 7/31/07 $ 568 1.98% 1.68% 2.00% 28% Year ended 7/31/06 $ 607 1.88% 1.68% 1.83% 12% Year ended 7/31/05 $ 1,175 1.80% 1.68% 1.71% 11% Year ended 7/31/04 $ 1,574 1.78% 1.69% 1.76% 21% - -------------------------------------------------------------------------------------------------------------- Michigan Municipal Bond Class C Shares Year ended 7/31/08 $ 76 1.92% 1.68% 1.92% 25% Year ended 7/31/07 $ 145 1.98% 1.68% 2.00% 28% Year ended 7/31/06 $ 196 1.88% 1.68% 1.83% 12% Year ended 7/31/05 $ 449 1.80% 1.68% 1.69% 11% Year ended 7/31/04 $ 1,794 1.78% 1.69% 1.76% 21% - -------------------------------------------------------------------------------------------------------------- See notes to financial highlights and notes to financial statements. Spread 202-203 Fifth Third Funds Notes to Financial Highlights - -------------------------------------------------------------------------------- (a) Before waivers and reimbursements (b) Net of waivers and reimbursements (c) Reflects date of commencement of operations. (d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. ^ Amount is less than $0.005 per share. * Not annualized. ** Annualized. # Represents income or gains/(losses) from affiliates. ## Average shares method used in calculation. + Includes Dividend and interest expense for securities sold short. Dividend and interest expense was less than 0.005% for the year ended July 31, 2007 and 0.59% for the year ended July 31, 2008. @ 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 Statement of Operations. See additional information below regarding per share impacts and total return from the year ended July 31, 2007 had this payment not occurred. Amount per share for Payment Total return excluding Payment by the Advisor (excludes sales charge) by the Advisor & --------------------------------------------------------------------- ----------------- Institutional Class A Class B Class C Advisor All Classes ------------- ------- ------- ------- ------- ----------------- Mid Cap Growth 17.24% 16.93% 16.06% 16.07% 16.65% $ 0.01 Quality Growth 20.38% 20.05% 19.15% 19.15% 19.72% $ 0.02 Disciplined Large Cap Value 14.44% 14.13% 13.38% 13.34% 13.90% $ -- ^ Dividend Growth 14.90% 14.64% 13.78% 13.79% 14.37% $ 0.07 International Equity 24.57% 24.27% 23.36% 23.31% 23.94% $ -- ^ Total Return Bond 4.72% 4.45% 3.75% 3.65% 4.29% $ 0.01 Municipal Bond 3.81% 3.53% 2.76% 2.82% 3.29% $ 0.02 Ohio Municipal 3.22% 2.86% 2.15% 2.09% NA $ 0.01 ^ Amount is less than $.005. & Per share impact of the Payment by the Advisor was recognized by all classes on July 30, 2007. Calculation is based on outstanding shares as of July 30, 2007. Net Investment Income/(Loss) in these Financial Highlights includes the Payment by the Advisor. See notes to financial statements. 204 Fifth Third Funds Notes to Financial Statements July 31, 2008 - -------------------------------------------------------------------------------- (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-one 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. 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 Micro Cap Value Fund ("Micro Cap Value") Fifth Third Small Cap Value Fund ("Small Cap Value") Fifth Third All 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 ("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 205 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 (the "Closing Date"), 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 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 the Closing 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 $ 329,322,202 Technology Acquired Fund 13,193,848 ------------- Mid Cap Growth After Acquisition $ 342,516,050 ============= Total Return Bond Acquiring Fund $ 237,605,488 Intermediate Bond Acquired Fund 447,870,973 U.S. Government Bond Acquired Fund 26,139,716 ------------- Total Return Bond After Acquisition $ 711,616,177 ============= The components of net assets of each Acquired Fund as of November 16, 2007 were as follows: Intermediate U.S. Government Components of Net Assets Acquired Technology Bond Bond - --------------------------------- ------------ ------------- --------------- Paid-in capital $ 49,198,085 $ 507,776,613 $ 27,001,412 Accumulated net investment loss (70,475) (42,220) (88,594) Accumulated net realized loss on investments (37,128,172) (41,848,762) (1,005,750) Net unrealized appreciation (depreciation) on investments 1,194,410 (18,014,658) 232,648 ------------ ------------- --------------- Total net assets $ 13,193,848 $ 447,870,973 $ 26,139,716 ============ ============= =============== On February 22, 2008, Quality Growth ("Acquiring Fund") acquired the respective net assets of Balanced ("Acquired Fund"), pursuant to an Agreement and Plan of Reorganization approved by shareholders the Acquired Fund on February 22, 2008 (the Closing and Shareholder Meeting Dates). The acquisition was accomplished by a tax-free exchange of shares of each class of the Acquiring Fund for the corresponding class of the Acquired Fund as of the Closing Date. Information about the combining funds as of this date is as follows; the shares issued by the Acquiring Fund are disclosed in the Statement of Changes in Net Assets. Net Assets as of Fund Description February 22, 2008 - ---- ----------- ----------------- Quality Growth Acquiring Fund $ 555,121,327 Balanced Acquired Fund 35,333,054 ------------- Quality Growth After Acquisition $ 590,454,381 ============= 206 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- The components of net assets of the Acquired Fund as of February 22, 2008 were as follows: Components of Net Assets Acquired Balanced - --------------------------------- ------------- Paid-in capital $ 71,035,459 Accumulated net investment loss (68,460) Accumulated net realized loss on investments (37,460,921) Net unrealized appreciation (depreciation) on investments 1,826,977 ------------- Total net assets $ 35,333,055 ============= Capital losses of the Acquired Funds are carried over to the Acquiring Fund on Closing Date. The Internal Revenue Code may limit the ability of Acquiring Funds to utilize capital losses of Acquired Funds (See Note 6). (2) Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. Securities Valuations--Portfolio securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including American Depositary Receipts ("ADR"), are valued at the closing price on the exchange or system where the security is principally traded. If there have been no sales for that day on any exchange or system, a security is valued at the mean between the closing bid and asked quotes on the exchange or system where the security is principally traded, or at the NASDAQ Official Closing Price ("NOCP"), if applicable. Securities in International Equity listed or traded on non-domestic exchanges are valued at the closing price on the exchanges on which they trade. Corporate debt securities and debt securities of U.S. 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 0.1%, 1.5%, 97.6%, 4.4% and 1.2% for Quality Growth, Strategic Income, International Equity, Total Return Bond and Short Term Bond, respectively. 207 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 Board of Trustees of the Fund (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. 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. As of July 31, 2008, International Equity had no open forward foreign currency contracts. 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 208 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 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). Possible losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested. 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 209 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 makes an upfront payment or pays a fixed rate throughout the term of the swap. In addition, as 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 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" or "Lending Agent"), to act as lending agent and to administer its securities lending program. The Funds commenced lending securities on April 16, 2008. 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. 210 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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. As of July 31, 2008, cash collateral received for the Funds engaged in securities lending was invested in the State Street Navigator Prime Securities Lending Portfolio. Additionally, certain funds received non-cash collateral, which they are not permitted to sell or re-pledge. The non-cash collateral is made up of U.S. Treasury and U.S. agency notes, bonds and discount notes. The maturities range from August 4, 2008 to April 18, 2036, with interest rates ranging from 2% to 8.125%. MV of Securities Cash Non-Cash Fund on Loan Collateral Collateral - ---- ------------ ------------ ----------- Small Cap Growth $ 21,878,933 $ 22,191,345 $ 232,885 Mid Cap Growth 64,326,137 63,530,259 2,379,731 Quality Growth 35,071,710 35,511,535 334,429 Equity Index 36,830,354 33,029,455 4,703,421 Micro Cap Value 10,600,034 10,927,545 -- Small Cap Value 25,057,559 25,743,205 13,522 All Cap Value 68,036,286 66,082,044 3,644,241 Disciplined Large Cap Value 18,277,189 16,324,034 2,521,167 Strategic Income 25,881,499 26,566,223 -- Dividend Growth 5,616,201 5,344,714 401,835 International Equity 34,340,106 36,115,304 -- High Yield Bond 13,134,765 13,409,343 -- Total Return Bond 37,126,301 37,951,578 -- 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. 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 Micro Cap Value Ohio Municipal Bond All Cap Value Michigan Municipal Bond Disciplined Large Cap Value The LifeModel Funds(SM) Dividend Growth 211 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- Distributable net realized gains, if any, are declared and distributed at least annually. Dividends declared and payable to shareholders are recorded on the ex-dividend date. Dividends from net investment income and from net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for mortgage-backed securities, amortization and/or accretion of securities, foreign currency transactions, expiring capital loss carryforwards and deferrals of certain losses. To the extent distributions would exceed net investment income and net realized gains for tax purposes, they are reported as a return of capital. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassifications. Accordingly, at July 31, 2008, reclassifications were recorded as follows: Increase Increase Increase (Decrease) (Decrease) (Decrease) Accumulated Accumulated Paid-in net investment net realized capital income/(loss) gain/(loss) ------------ -------------- ------------ Small Cap Growth $ (616,927) $ 683,595 $ (66,668) Mid Cap Growth (35,651,689) 1,633,026 34,018,663 Quality Growth (28,704,918) 139,526 28,565,393 Dividend Growth 571 (739) 168 Micro Cap Value 209 51 (260) Small Cap Value 1,382,266 (29,581) (1,352,685) All Cap Value (466) 467 (1) Disciplined Large Cap Value 326,595 807 (327,402) Structured Large Cap Plus (1,774) (9,406) 11,180 Equity Index (516) (91,536) 92,052 International Equity (6,142) (1,238,997) 1,245,139 Strategic Income 2,382 69,843 (72,225) LifeModel Aggressive(SM) (207) 3,018,988 (3,018,781) LifeModel Moderately Aggressive(SM) (549) 3,899,653 (3,899,104) LifeModel Moderate(SM) (637) 4,248,854 (4,248,217) LifeModel Moderately Conservative(SM) (223) 651,987 (651,764) LifeModel Conservative(SM) (66) 178,176 (178,110) High Yield Bond (86) 86 -- Total Return Bond (14,460,872) 550,101 13,910,771 Short Term Bond (1,136,998) 283,486 853,512 Municipal Bond 1,539 (6,195) 4,656 Intermediate Municipal Bond 1,097 (19,115) 18,018 Ohio Municipal Bond 1,921 31,577 (33,498) Michigan Municipal Bond (52) (2,285) 2,337 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 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 requires 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 January 31, 2008. 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 July 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 2005-2007, no examinations are in progress or anticipated as of this report date. The Funds are not aware of 212 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 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 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. In March 2008, FASB issued Statement on Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities ("FAS 161"). FAS 161 may require enhanced disclosures about Funds' derivative and hedging activities. FAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds' financial statement disclosures. (3) Related Party Transactions 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, $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. 213 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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 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. All waivers not recovered at the end of the period expire on November 28, 2008. The Funds' various annual fee rates, waivers and expense limitations as of this report date are as follows: Class Expense Limitations* ----------------------------------------------- Advisory Expense Administration Reimbursement 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% $ 59,548 Quality Growth * 0.80% NA C 0.02% 1.06% 1.31% 2.06% 2.06% $ 204,699 Dividend Growth 0.80% 0.20% C NA 0.73% 0.98% 1.73% 1.73% $ 875,441 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% $ 235,085 Disciplined Large Cap Value 0.80% NA C 0.06% 1.01% 1.26% 2.01% 2.01% $ 292,440 Structured Large Cap Plus+++ 0.70% NA C NA 0.92% 1.17% 1.92% 1.92% $ 347,682 Equity Index^ 0.30% 0.20% C 0.065% 0.19% 0.44% 1.19% 1.19% $ 1,053,331 International Equity +* 1.00% 0.14% C NA 1.21% 1.46% 2.21% 2.21% $ 493,896 Strategic Income 1.00% 0.30% C 0.05% 0.96% 1.21% 1.96% 1.96% $ 330,853 LifeModel Aggressive(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 472,032 LifeModel Moderately Aggressive(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 792,951 LifeModel Moderate(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 1,002,727 LifeModel Moderately Conservative(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 253,245 LifeModel Conservative(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 174,900 High Yield Bond 0.70% NA C NA 0.74% 0.99% 1.74% 1.74% $ 141,920 Total Return Bond * 0.60% 0.10% C 0.08% 0.68% 0.93% 1.68% 1.68% $ 857,811 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% $ 59,494 * 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 July 31, 2008. For Dividend Growth, this amount represents the period from August 1, 2005 through July 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%. 214 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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% 0.10% - 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 $11,998 for the Trust, a majority of which was attributed to FTAM. Affiliates of FTAM earned reallowed sales commissions of $470,999 and 12b-1 distribution/servicing fees as well as administrative servicing fees (see below) of $3,843,408 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 $370,000 from the Trust in service fees for the period ended as of this report date. 215 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- Other--Certain officers of the Trust are also officers of FTAM and/or its affiliates. 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 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 $ 106,501,690 $ 149,413,834 $ -- $ -- Mid Cap Growth 295,583,066 369,640,027 -- -- Quality Growth 347,019,839 534,853,611 918,563 57,871 Dividend Growth 16,993,965 18,735,281 -- -- Micro Cap Value 25,180,762 56,674,487 -- -- Small Cap Value 58,973,982 79,495,649 -- -- All Cap Value 124,125,585 145,647,995 -- -- Disciplined Large Cap Value 286,132,634 361,238,392 -- -- Structured Large Cap Plus 172,481,535 205,217,501 -- -- Equity Index 17,342,919 23,570,149 -- -- International Equity 773,334,458 749,457,582 -- -- Strategic Income 37,921,080 53,198,352 2,998,439 3,659,863 LifeModel Aggressive(SM) 59,141,378 49,663,672 -- -- LifeModel Moderately Aggressive(SM) 83,790,157 86,722,298 -- -- LifeModel Moderate(SM) 109,941,191 132,092,626 -- -- LifeModel Moderately Conservative(SM) 23,527,069 27,376,008 -- -- LifeModel Conservative(SM) 16,414,727 12,346,514 -- -- High Yield Bond 20,656,002 35,290,689 -- -- Total Return Bond 356,384,718 92,542,099 217,903,133 95,127,290 Short Term Bond 39,628,910 46,584,897 46,782,065 59,060,263 Municipal Bond 24,939,191 28,732,391 -- -- Intermediate Municipal Bond 68,944,664 99,817,913 -- -- Ohio Municipal Bond 40,331,774 51,403,085 -- -- Michigan Municipal Bond 11,109,619 18,792,951 -- -- 216 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- (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, whose borrowings may not exceed 10% of the Funds' net assets) 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%. There were no borrowings against the line of credit during the period the agreement was in place. (6) Federal Tax Information The tax character of distributions paid during the fiscal years ended July 31, 2008 and 2007 was as follows: Year ended July 31, 2008 ------------------------------------------------------ Distributions paid from ------------------------------------------------------ Net Long Term Tax Total Ordinary Capital Exempt Distributions Fund Income Gains Income Paid - ---- ----------- ----------- ---------- ------------- Small Cap Growth $ 8,873,764 $31,126,216 $ -- $ 39,999,980 Mid Cap Growth 3,389,553 45,218,701 -- 48,608,254 Quality Growth 21,265,643 67,802,545 -- 89,068,188 Dividend Growth 263,404 -- -- 263,404 Micro Cap Value 1,172,603 22,356,893 -- 23,529,496 Small Cap Value 2,310,779 11,137,686 -- 13,448,465 All Cap Value 7,678,070 41,680,209 -- 49,358,279 Disciplined Large Cap Value 20,522,118 31,674,457 -- 52,196,575 Structured Large Cap Plus 1,388,324 955,083 -- 2,343,407 Equity Index 6,749,004 -- -- 6,749,004 International Equity 16,880,862 29,974,715 -- 46,855,577 Strategic Income 7,586,002 4,046,949 -- 11,632,951 LifeModel Aggressive(SM) 6,109,169 13,564,253 -- 19,673,422 LifeModel Moderately Aggressive(SM) 11,696,334 21,736,616 -- 33,432,950 LifeModel Moderate(SM) 20,278,652 24,782,374 -- 45,061,026 LifeModel Moderately Conservative(SM) 3,820,869 4,771,242 -- 8,592,111 LifeModel Conservative(SM) 2,234,699 1,227,481 -- 3,462,180 High Yield Bond 4,533,878 -- -- 4,533,878 Total Return Bond 26,468,692 -- -- 26,468,692 Short Term Bond 10,702,400 -- -- 10,702,400 Municipal Bond 60,735 87,268 1,659,525 1,807,528 Intermediate Municipal Bond 214,806 325,407 4,957,549 5,497,762 Ohio Municipal Bond 36,630 391,033 3,175,976 3,603,639 Michigan Municipal Bond -- -- 1,332,746 1,332,746 Year ended July 31, 2007 ----------------------------------------------------------------- Distributions paid from ----------------------------------------------------------------- Net Long Term Tax Return Total Ordinary Capital Exempt of Distributions Fund Income Gains Income Capital Paid - ---- ----------- ----------- ---------- -------- ------------- Small Cap Growth $ 3,010,766 $30,185,627 $ -- $ -- $ 33,196,393 Mid Cap Growth -- 74,693,980 -- -- 74,693,980 Quality Growth 3,228,460 10,916,524 -- -- 14,144,984 Dividend Growth 497,165 -- -- -- 497,165 Micro Cap Value 2,786,879 22,169,301 -- -- 24,956,180 Small Cap Value 8,327,480 8,285,647 -- -- 16,613,127 All Cap Value 8,223,082 50,068,737 -- -- 58,291,819 Disciplined Large Cap Value 9,554,231 88,490,631 -- -- 98,044,862 Structured Large Cap Plus 1,607,730 758,123 -- -- 2,365,853 Equity Index 7,234,719 -- -- -- 7,234,719 International Equity 3,961,393 9,030,088 -- -- 12,991,481 Strategic Income 7,383,650 1,525,671 -- -- 8,909,321 LifeModel Aggressive(SM) 1,226,436 5,018,673 -- -- 6,245,109 LifeModel Moderately Aggressive(SM) 5,443,188 8,047,858 -- -- 13,491,046 LifeModel Moderate(SM) 14,206,604 10,616,244 -- -- 24,822,848 LifeModel Moderately Conservative(SM) 3,084,150 2,513,988 -- -- 5,598,138 LifeModel Conservative(SM) 1,982,695 971,709 -- -- 2,954,404 High Yield Bond 4,850,184 -- -- -- 4,850,184 Total Return Bond 12,928,525 -- -- -- 12,928,525 Short Term Bond 10,846,249 -- -- 233,956 11,080,205 Municipal Bond 9,692 438,022 1,637,272 -- 2,084,986 Intermediate Municipal Bond 42,331 492,583 5,692,681 -- 6,227,595 Ohio Municipal Bond 54,312 110,602 3,641,827 -- 3,806,741 Michigan Municipal Bond -- -- 1,547,338 9,399 1,556,737 217 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- As of July 31, 2008, the components of accumulated earnings/(deficit) on a tax basis were 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 $ -- $ -- $ -- $ (382,613) $ 5,921,094 $ 5,538,481 Mid Cap Growth -- -- 18,599,422 (1,184,808) 10,629,843 28,044,457 Quality Growth -- 833,831 12,504,390 (3,066,911) 74,657,117 84,928,427 Dividend Growth -- 45,157 -- (13,531,662) 1,190,196 (12,296,309) Micro Cap Value -- 80,218 12,490 (2,418,719) (2,237,262) (4,563,273) Small Cap Value -- 456,279 20,850 (1,210,103) 980,304 247,330 All Cap Value -- 474,171 12,448,010 (1) 8,740,050 21,662,230 Disciplined Large Cap Value -- 1,984,946 6,405,451 (1) 4,025,912 12,416,308 Structured Large Cap Plus -- 737,523 -- (20,272,101) 7,114,063 (12,420,515) Equity Index -- 1,076,762 -- (4,720,036) 183,691,174 180,047,900 International Equity -- 8,795,719 42,624,633 (7,011,047) (16,589,561) 27,819,744 Strategic Income -- (377,778) 92,440 (921,285) (17,556,673) (18,763,296) LifeModel Aggressive(SM) -- 524,464 14,443,404 -- 229,585 15,197,453 LifeModel Moderately Aggressive(SM) -- 2,112,567 19,285,503 1 2,549,640 23,947,711 LifeModel Moderate(SM) -- 3,563,524 18,699,879 (1) (15,624,103) 6,639,299 LifeModel Moderately Conservative(SM) -- 700,057 3,848,615 2 (2,487,151) 2,061,523 LifeModel Conservative(SM) -- 380,904 817,946 -- (3,732,314) (2,533,464) High Yield Bond -- 74,934 -- (1,114,501) (4,714,053) (5,753,620) Total Return Bond -- 517,191 -- (46,823,450) (53,076,696) (99,382,955) Short Term Bond -- 209,101 -- (21,170,802) (3,532,549) (24,494,250) Municipal Bond 90,781 26,553 20,773 (902) 283,377 420,582 Intermediate Municipal Bond 25,007 -- 253,528 2,177 1,758,138 2,038,850 Ohio Municipal Bond 282,487 -- 21,270 -- 872,270 1,176,027 Michigan Municipal Bond 2,410 -- -- (318,565) 349,391 33,236 * 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, 2008, 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 treasury regulations: Expiration Year ------------------------------------------------------------------------------------------------ Fund 2009 2010 2011 2012 2013 2014 2015 2016 Total - ---- ---------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- Dividend Growth $ -- $10,084,841 $3,023,983 $ 39,378 $ -- $ -- $ -- $ -- $13,148,202 Structured Large Cap 5,734,447 -- -- 793,432 -- -- -- 1,246,518 7,774,397 Equity Index -- -- 4,108,854 605,734 -- -- -- -- 4,714,588 High Yield Bond -- -- -- -- -- -- 382,634 -- 382,634 Short Term Bond -- -- -- 212,104 6,363,164 9,778,491 4,709,395 -- 21,063,154 Michigan Municipal Bond Fund -- -- -- -- -- 44,887 272,882 -- 317,769 As of July 31, 2008, the following Funds have additional capital loss carryforwards and built in losses, subject to certain limitations on availability, to offset future capital gains, if any, as the successor of a merger: Expiration Year ------------------------------------------------------------------------------------------------ Fund 2009 2010 2011 2012 2013 2014 2015 2016 Total - ---- ---------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- Mid Cap Growth $ 592,404 $ 592,404 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,184,808 Quality Growth -- 3,066,910 -- -- -- -- -- -- 3,066,910 International Equity 867,797 1,405,848 5,161,371 -- -- -- -- -- 7,435,016 Total Return Bond 313,458 -- 2,967,989 3,490,975 6,705,683 12,507,496 4,893,287 1,172,463 32,051,351 218 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- 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, 2008, the fund deferred to August 1, 2008 post October capital losses, post October currency losses and post October passive foreign investment company losses of: Capital Losses ----------- Small Cap Growth Fund $ 377,242 Dividend Growth Fund 383,460 Structured Large Cap Plus 12,491,593 Micro Cap Value Fund 2,418,717 Small Cap Value Fund 1,210,103 Strategic Income Fund 921,285 High Yield Bond 731,867 Total Return Bond 14,779,728 Short Term Bond 106,468 During the tax year ended July 31, 2008, the funds utilized/expired capital loss carryforwards in the following amounts: Amount Utilized Amount Expired --------------- -------------- Mid Cap Growth $ 417,596 $ -- Quality Growth 670,363 -- Dividend Growth 544,599 -- Equity Index 11,838,860 -- International Equity 9,204,482 -- High Yield Bond 68,491 -- Total Return Bond -- 970,107 Short Term Bond 521,381 1,126,162 Michigan Municipal Bond 7,485 -- The following funds have a capital loss carryforwards that will not be utilized due to merger limitations: Mid Cap Growth $35,583,828 Quality Growth 33,689,461 As of July 31, 2008, the following fund has a current year Investment Company taxable loss: Mid Cap Growth $1,485,605 (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 July 31, 2008, Total Return Bond held the following restricted securities: Value as Acquisition Acquisition Fair % of Security Type Date Cost Value Net Assets -------------------------- ------------ ----------- ---------- ---------- Total Return Bond Deutsche Mortgage Securities, Inc., Series 2005-WF1 Mortgage-Backed Securities 09/16/2005 $ 1,062,278 $1,057,764 0.18% Residential Funding Mortgage Securities II, Inc., Series 2006-HI3 Asset-Backed Securities 07/16/2006 1,499,491 765,723 0.13% Restructured Assets Certificates, Series 2006-9 Mortgage-Backed Securities 08/10/2006 5,234,953 3,622,500 0.62% Squared CDO, Ltd., Series 2007-1A Mortgage-Backed Securities 05/01/2007 3,955,319 -- -- ----------- ---------- ----- $11,752,041 $5,445,987 0.93% =========== ========== ===== 219 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- (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. 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. 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) Market and Credit Risk In the normal course of business the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to credit risk, the Funds may be exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss could exceed the value of the financial assets recorded in the financial statements. Financial assets, which potentially expose the Funds to credit risk, consist principally of cash due from counterparties and investments. The extent of the Funds' exposure to credit and counterparty risks in respect to these financial assets approximates their carrying value as recorded in the Funds' Statements of Assets and Liabilities. (10) Subsequent Event Proposed Fund Mergers--At a special meeting of the Board of Trustees on July 30, 2008, the Trustees approved Agreements and Plans of Reorganization (the "Plans") relating to the proposed reorganizations of certain funds of the Trust with and into certain series of Intermediate Municipal Trust or Federated Municipal Securities Income Trust (the "Proposed Reorganizations") as described below. Several Funds within these financial statements are parties to proposed reorganizations, whereby the "Acquiring Fund" proposes to acquire the "Acquired Fund" as shown below. Each of the proposed reorganizations is independent and not conditioned on the others. A proxy/prospectus relating to the Proposed Reorganizations was filed with the Securities and Exchange Commission on September 2, 2008, indicating anticipated shareholder meeting and closing dates to be held on or about November 21, 2008. The Plans are subject to approval of the shareholders of the Acquired Funds. Acquiring Fund Acquired Fund - -------------- ------------- Federated Intermediate Municipal Trust, a series of Intermediate Municipal Trust Intermediate Municipal Bond Federated Intermediate Municipal Trust, a series of Intermediate Municipal Trust Municipal Bond Federated Michigan Intermediate Municipal Trust, a series of Federated Municipal Securities Income Trust Michigan Municipal Bond Federated Ohio Municipal Income, a series of Federated Municipal Securities Income Trust Ohio Municipal Bond 220 Fifth Third Funds Notes to Financial Statements, continued July 31, 2008 - -------------------------------------------------------------------------------- Market Conditions (unaudited) --Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the net asset value of many mutual funds, including the Fifth Third Funds. Such events occurring subsequent to the date of this report have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be held with in the Funds. The potential investment of each Fund's investments in these issuers, and the financial sector in general, as reflected in each Fund's schedule of investments, exposes investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Short Sales (unaudited) -- As of September 18, 2008, and as subsequently amended, the Securities and Exchange Commission enacted rules which, among other things, restrict management's ability to conduct short sales on certain specified securities issued primarily by financial institutions. Structured Large Cap Plus' investment strategy includes short exposure and it is possible that these rules could impact this Fund's ability to execute its investment strategies. While the impact of the rules is not currently expected to be material to this Fund or its operations, the ultimate outcome and related impact to this Fund cannot currently be predicted with certainty. Possible impacts include a reduced inventory of shares available for borrowing, and increased transaction costs relating to short selling. As of July 31, 2008, Lehman Brothers, Inc. served as the primary counterparty for all short selling agreements in Structured Large Cap Plus. On September 17, 2008, Barclays announced it would acquire Lehman Bothers' North American investment banking and capital markets operations and supporting infrastructure. The acquisition is not currently anticipated to significantly impact Fund operations. 221 Report of Independent Registered Public Accounting Firm - -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders of The Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations, of changes in net assets and of cash flows and the financial highlights present fairly, in all material respects, the financial position of the Fifth Third Small Cap Growth Fund, Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth Third Structured Large Cap Plus Fund, Fifth Third Equity Index Fund, Fifth Third Micro Cap Value Fund, Fifth Third Small Cap Value Fund, Fifth Third All Cap Value Fund (formerly Fifth Third Multi Cap Value Fund), Fifth Third Disciplined Large Cap Value Fund, Fifth Third LifeModel Aggressive Fund, Fifth Third LifeModel Moderately Aggressive Fund, Fifth Third LifeModel Moderate Fund, Fifth Third LifeModel Moderately Conservative Fund, Fifth Third LifeModel Conservative Fund, Fifth Third Strategic Income Fund, Fifth Third Dividend Growth Fund, Fifth Third International Equity Fund, Fifth Third High Yield Bond Fund, Fifth Third Total Return Bond Fund (formerly Fifth Third Bond Fund), Fifth Third Short Term Bond Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate Municipal Bond Fund, Fifth Third Ohio Municipal Bond Fund, and Fifth Third Michigan Municipal Bond Fund (the "Funds") at July 31, 2008, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, the cash flows for the Fifth Third Structured Large Cap Plus Fund for the year then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Kansas City, MO October 1, 2008 222 Fifth Third Funds Supplemental Information (unaudited) - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT^ The Trustees and Officers of the Funds, age, the position they hold with the Funds, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the fund complex that the Trustee oversees and any other directorships held by the Trustee are listed in the two tables immediately following. The business address of the persons listed below is 38 Fountain Square Plaza, Cincinnati, Ohio 45202. Independent Trustees -------------------- Number of Portfolios Position(s) Term of in Fund Held Office and Complex Name and with the Length of Principal Occupation(s) Overseen by Other Directorships Age Funds Time Served During the Past 5 Years Trustee Held by Trustee - ------------------ -------------- ------------- ------------------------------------- ----------- ------------------------ Edward Burke Carey Chairman-Board Indefinite, Carey Realty Investments, Inc. 31 Canisius College-Trustee Age: 63 of Trustees January 1989- (real estate development and Present consulting), President, 1990-Present. David J. Durham Trustee Indefinite, Chairman of Clipper Products, 31 None Age: 63 June 2001- Inc., a wholesale distributor, Present 2005-present. Chairman of Norris Products Corp., a wholesale distributor, 2005-present. President and Chief Executive Officer of Clipper Products, Inc., 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, EVP and Managing Director, 31 Trustee for Hanover Age: 58 March 2001- DHR International (executive College, National Present recruiter), April 2007-Present. Underground Freedom Consultant, Duke Energy Center, The Cincinnati April 2006-March 2007. Zoo, The Ohio Arts President, Cinergy Council, The Cincinnati Foundation, November Parks Foundation and 2001-March 2006. Playhouse in the Park. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 31 Printing Industries of Age: 63 October 2001- Present. Business America: Web Offset Present Management Consultant, Assoc., Director; Master April 2000-February 2002. Printers of America, Director. David J. Gruber Trustee Indefinite, President, DJG Financial 31 None Age: 44 December 2003- Consulting (accounting and Present finance consultant), June 2007- Present. Resources Global Professionals, Project Professional, December 2004-June 2007. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO, April 2003-December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director, April 1996-March 2003. - ---------- ^ Additional disclosures can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. 223 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Officers -------- Name and Position(s) Held Term of Office and Principal Occupation(s) Age with the Funds Length of Time Served During the Past 5 Years - -------------------- ---------------------------- --------------------- ------------------------------------------------------ E. Keith Wirtz President Indefinite, President, Fifth Third Asset Management, Inc. 2003- Age: 48 April 2007- Present, Managing Partner, Paladin Investment Present Associates, LLC, 2000-2003. Matthew A. Ebersbach Vice President Indefinite, Vice President of Fifth Third Bank since 2001. Age: 38 March 2006- Present Richard B. Ille Vice President Indefinite, Managing Director, Products and Marketing, Fifth Third Age: 43 April 2007- Asset Management, Inc., 2001-Present. Present James A. Mautino Anti-Money Laundering Indefinite, Vice President and Chief Compliance Officer, Fifth Age: 40 and Chief Compliance Officer February 2007- Third Asset Management, Inc. August 2005-Present, Present Director of Risk and Compliance, State Street Bank and Trust Company, October 1995-July 2005. Shannon King Treasurer Indefinite, Vice President, Fifth Third Asset Management, Inc. Age: 36 April 2007- September 2007-Present, Assistant Vice President and Present Capital Markets Derivative Manager, Fifth Third Bank 2005-2007, Capital Markets Accounting Manager, Fifth Third Bank 2001-2005. Matthew A. Swendiman Secretary Indefinite, Vice President and Counsel of Fifth Third Bank, March Age: 35 March 2008- 2006 to Present. Attorney, Kirkpatrick & Lockhart Present Nicholson Graham, LLP, May 2005-March 2006. Counsel, The Phoenix Companies, Inc., July 2002-April 2005. Assistant Vice President and Assistant Counsel, Conseco Capital Management, Inc., December 2000-June 2002. Christopher Roetzer Assistant Treasurer Indefinite, Vice President, State Street Bank and Trust Company (a Age: 45 June 2007- Massachusetts trust company) from 2004 to Present. Present Vice President, Assistant Treasurer and Principal Accounting Officer, IDEX Mutual Funds, AEGON/Transamerica Series Fund, Inc.; various AEGON USA affiliates, 1986-2003. Tracy Kaufman Assistant Treasurer Indefinite, Assistant Vice President State Street Bank and Trust Age: 49 June 2007- Company (a Massachusetts trust company) from 1986 to Present Present. Francine S. Hayes Assistant Secretary Indefinite, Vice President and Counsel, State Street Bank and Age: 40 June 2007- Trust Company (a Massachusetts trust company) from Present 2004 to Present; and Assistant Vice President and Counsel, State Street Bank and Trust Company, from 2001 to 2004. 224 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- ADDITIONAL TAX INFORMATION For the taxable year ended July 31, 2008, the following percentage of income dividends paid by the Fund qualify for the dividends received deduction available to corporations: Percentage ---------- Small Cap Growth 9% Mid Cap Growth 27% Quality Growth 67% Dividend Growth 100% Micro Cap Value 73% Small Cap Value 77% All Cap Value 100% Disciplined Large Cap Value 84% Structured Large Cap Plus 100% Equity Index 100% Strategic Income 50% LifeModel Aggressive(SM) 43% LifeModel Moderately Aggressive(SM) 26% LifeModel Moderate(SM) 16% LifeModel Moderately Conservative(SM) 12% LifeModel Conservative(SM) 6% For the fiscal year ended July 31, 2008, certain dividends paid by the Funds are subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. To the extent dividends are paid during the calendar year 2008, complete information will be reported on shareholders' 2008 Form 1099-DIV. The Funds hereby designate up to the maximum amount allowable as qualified dividend income for the fiscal year ended July 31, 2008: Amount ------------ Small Cap Growth $ 766,450 Mid Cap Growth 834,847 Quality Growth 14,187,580 Dividend Growth 263,404 Micro Cap Value 875,659 Small Cap Value 1,761,874 All Cap Value 7,667,022 Disciplined Large Cap Value 17,121,951 Structured Large Cap Plus 1,388,321 Equity Index 6,749,004 International Equity 17,041,717 Strategic Income 4,075,152 LifeModel Aggressive(SM) 2,232,634 LifeModel Moderately Aggressive(SM) 2,867,749 LifeModel Moderate(SM) 3,175,796 LifeModel Moderately Conservative(SM) 469,057 LifeModel Conservative(SM) 142,104 225 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- The Funds designate the following amounts as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals. The amounts designated may not agree with the long term capital gains in the tax character of distribution table due to utilization of earnings and profits distributed to shareholders on redemption of shares. Amount ------------ Small Cap Growth $ 31,126,216 Mid Cap Growth 45,218,701 Quality Growth 67,802,545 Micro Cap Value 22,356,893 Small Cap Value 11,141,924 All Cap Value 41,680,209 Disciplined Large Cap Value 31,674,457 Structured Large Cap Plus 955,083 International Equity 29,974,715 Strategic Income 4,046,949 LifeModel Aggressive(SM) 13,564,253 LifeModel Moderately Aggressive(SM) 21,736,616 LifeModel Moderate(SM) 24,782,374 LifeModel Moderately Conservative(SM) 4,771,242 LifeModel Conservative(SM) 1,227,481 Municipal Bond 87,268 Intermediate Municipal Bond 325,407 Ohio Municipal Bond 391,033 International Equity may elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per outstanding share on July 31, 2008 are as follows: Foreign Foreign Source Tax Income Expense ------- ------- International Equity $0.62 $0.03 If elected, the pass-through of the foreign tax credit will affect only those persons who are shareholders on the dividend record date in December 2008. These shareholders will receive more detailed information along with their 2008 Form 1099-DIV. The tax-exempt percentage of ordinary income and short-term capital gain distributions paid during fiscal year 2008 was as follows: Percentage ---------- Municipal Bond 96% Intermediate Municipal Bond 96% Ohio Municipal Bond 99% Michigan Municipal Bond 100% 226 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- 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 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 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 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 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 0 227 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- At a special meeting of shareholders of the Fifth Third Balanced Fund (the "Balanced Fund"), a series of the Fifth Third Funds (the "Trust") held on February 22, 2008, 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 Balanced Fund to the Fifth Third Quality Growth Fund. Votes ------------------------------- Affirmative 1,801,403 Against 285,719 Abstain 33,573 Broker non-votes 0 228 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- EXPENSE EXAMPLE As a shareholder of the Fifth Third Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fifth Third Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2008 through July 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 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 --------- --------- ---------------- ---------------- Small Cap Growth Institutional Shares $1,000.00 $ 990.20 $ 4.95 1.00% Class A Shares 1,000.00 986.90 6.18 1.25% Class B Shares 1,000.00 984.40 9.92 2.01% Class C Shares 1,000.00 984.40 9.92 2.01% Mid Cap Growth Institutional Shares 1,000.00 949.50 5.28 1.09% Class A Shares 1,000.00 948.40 6.44 1.33% Class B Shares 1,000.00 945.40 10.06 2.08% Class C Shares 1,000.00 944.50 10.06 2.08% Quality Growth Institutional Shares 1,000.00 1,005.60 5.29 1.06% Class A Shares 1,000.00 1,001.60 6.52 1.31% Class B Shares 1,000.00 1,000.70 10.25 2.06% Class C Shares 1,000.00 1,002.70 10.26 2.06% Dividend Growth Institutional Shares 1,000.00 943.40 3.48 0.73% Class A Shares 1,000.00 942.30 4.73 0.98% Class B Shares 1,000.00 938.40 8.34 1.73% Class C Shares 1,000.00 936.80 8.33 1.73% Micro Cap Value Institutional Shares 1,000.00 1,018.80 6.73 1.34% Class A Shares 1,000.00 1,018.00 7.98 1.59% Class B Shares 1,000.00 1,012.80 11.76 2.35% Class C Shares 1,000.00 1,016.00 11.78 2.35% Small Cap Value Institutional Shares 1,000.00 1,024.00 6.04 1.20% Class A Shares 1,000.00 1,022.50 7.29 1.45% Class B Shares 1,000.00 1,018.30 11.04 2.20% Class C Shares 1,000.00 1,018.40 11.04 2.20% Alli Cap Value Institutional Shares 1,000.00 902.20 5.63 1.19% Class A Shares 1,000.00 901.40 6.76 1.43% Class B Shares 1,000.00 898.20 10.29 2.18% Class C Shares 1,000.00 898.10 10.34 2.19% Disciplined Large Cap Value Institutional Shares 1,000.00 915.40 4.81 1.01% Class A Shares 1,000.00 914.60 6.00 1.26% Class B Shares 1,000.00 910.80 9.55 2.01% Class C Shares 1,000.00 910.50 9.55 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. 229 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 --------- --------- ---------------- ---------------- Structured Large Cap Plus Institutional Shares $1,000.00 $ 931.90 $ 4.42 0.92% Class A Shares 1,000.00 930.30 5.62 1.17% Class B Shares 1,000.00 926.70 9.20 1.92% Class C Shares 1,000.00 926.70 9.25 1.93% Equity Index Institutional Shares 1,000.00 928.30 0.91 0.19% Class A Shares 1,000.00 927.20 2.11 0.44% Class B Shares 1,000.00 923.70 5.69 1.19% Class C Shares 1,000.00 923.50 5.69 1.19% Select shares 1,000.00 928.20 1.29 0.27% Preferred Shares 1,000.00 927.90 1.63 0.34% Trust Shares 1,000.00 927.00 2.11 0.44% International Equity Institutional Shares 1,000.00 911.40 5.75 1.21% Class A Shares 1,000.00 910.60 6.94 1.46% Class B Shares 1,000.00 906.70 10.48 2.21% Class C Shares 1,000.00 907.00 10.48 2.21% Strategic Income Institutional Shares 1,000.00 904.50 4.55 0.96% Class A Shares 1,000.00 904.00 5.73 1.21% Class B Shares 1,000.00 900.70 9.26 1.96% Class C Shares 1,000.00 900.90 9.26 1.96% LifeModel Aggressive(SM) Institutional Shares 1,000.00 943.00 0.39 0.08% Class A Shares 1,000.00 942.00 1.59 0.33% Class B Shares 1,000.00 938.50 5.21 1.08% Class C Shares 1,000.00 939.10 5.21 1.08% LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 946.80 0.39 0.08% Class A Shares 1,000.00 946.20 1.60 0.33% Class B Shares 1,000.00 942.90 5.22 1.08% Class C Shares 1,000.00 942.90 5.22 1.08% LifeModel Moderate(SM) Institutional Shares 1,000.00 950.50 0.39 0.08% Class A Shares 1,000.00 949.10 1.60 0.33% Class B Shares 1,000.00 946.40 5.23 1.08% Class C Shares 1,000.00 945.60 5.22 1.08% LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 954.20 0.39 0.08% Class A Shares 1,000.00 951.90 1.60 0.33% Class B Shares 1,000.00 948.50 5.23 1.08% Class C Shares 1,000.00 948.50 5.23 1.08% LifeModel Conservative(SM) Institutional Shares 1,000.00 955.30 0.39 0.08% Class A Shares 1,000.00 953.90 1.60 0.33% Class B Shares 1,000.00 949.40 5.23 1.08% Class C Shares 1,000.00 949.50 5.23 1.08% High Yield Bond Institutional Shares 1,000.00 1,004.10 3.69 0.74% Class A Shares 1,000.00 1,003.00 4.93 0.99% Class B Shares 1,000.00 999.60 8.65 1.74% Class C Shares 1,000.00 999.60 8.65 1.74% - ---------- * 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. 230 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 --------- --------- ---------------- ---------------- Total Return Bond Institutional Shares $1,000.00 $ 939.80 $ 3.23 0.67% Class A Shares 1,000.00 939.80 4.44 0.92% Class B Shares 1,000.00 935.80 8.09 1.68% Class C Shares 1,000.00 935.80 8.09 1.68% Short Term Bond Institutional Shares 1,000.00 995.30 3.18 0.64% Class A Shares 1,000.00 995.30 4.42 0.89% Class C Shares 1,000.00 991.10 8.12 1.64% Municipal Bond Institutional Shares 1,000.00 990.20 3.02 0.61% Class A Shares 1,000.00 989.20 4.25 0.86% Class B Shares 1,000.00 985.80 7.95 1.61% Class C Shares 1,000.00 985.00 7.95 1.61% Intermediate Municipal Bond Institutional Shares 1,000.00 992.00 3.17 0.64% Class A Shares 1,000.00 990.90 4.41 0.89% Class B Shares 1,000.00 990.90 4.41 0.89% Class C Shares 1,000.00 986.80 8.10 1.64% Ohio Municipal Bond Institutional Shares 1,000.00 993.90 3.92 0.79% Class A Shares 1,000.00 991.80 5.15 1.04% Class B Shares 1,000.00 989.30 8.85 1.79% Class C Shares 1,000.00 989.40 8.85 1.79% Michigan Municipal Bond Institutional Shares 1,000.00 999.60 3.38 0.68% Class A Shares 1,000.00 998.90 4.13 0.83% Class B Shares 1,000.00 994.30 8.33 1.68% Class C Shares 1,000.00 994.30 8.33 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. 231 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Hypothetical Example for Comparison Purposes The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may however use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 --------- --------- ---------------- ---------------- Small Cap Growth Institutional Shares $1,000.00 $1,019.89 $ 5.02 1.00% Class A Shares 1,000.00 1,018.65 6.27 1.25% Class B Shares 1,000.00 1,014.87 10.07 2.01% Class C Shares 1,000.00 1,014.87 10.07 2.01% Mid Cap Growth Institutional Shares 1,000.00 1,019.44 5.47 1.09% Class A Shares 1,000.00 1,018.25 6.67 1.33% Class B Shares 1,000.00 1,014.52 10.42 2.08% Class C Shares 1,000.00 1,014.52 10.42 2.08% Quality Growth Institutional Shares 1,000.00 1,019.59 5.32 1.06% Class A Shares 1,000.00 1,018.35 6.57 1.31% Class B Shares 1,000.00 1,014.62 10.32 2.06% Class C Shares 1,000.00 1,014.62 10.32 2.06% Dividend Growth Institutional Shares 1,000.00 1,021.28 3.62 0.73% Class A Shares 1,000.00 1,019.99 4.92 0.98% Class B Shares 1,000.00 1,016.26 8.67 1.73% Class C Shares 1,000.00 1,016.26 8.67 1.73% Micro Cap Value Institutional Shares 1,000.00 1,018.20 6.72 1.34% Class A Shares 1,000.00 1,016.96 7.97 1.59% Class B Shares 1,000.00 1,013.18 11.76 2.35% Class C Shares 1,000.00 1,013.18 11.76 2.35% Small Cap Value Institutional Shares 1,000.00 1,018.90 6.02 1.20% Class A Shares 1,000.00 1,017.65 7.27 1.45% Class B Shares 1,000.00 1,013.92 11.02 2.20% Class C Shares 1,000.00 1,013.92 11.02 2.20% All Cap Value Institutional Shares 1,000.00 1,018.95 5.97 1.19% Class A Shares 1,000.00 1,017.75 7.17 1.43% Class B Shares 1,000.00 1,014.02 10.92 2.18% Class C Shares 1,000.00 1,013.97 10.97 2.19% Disciplined Large Cap Value Institutional Shares 1,000.00 1,019.84 5.07 1.01% Class A Shares 1,000.00 1,018.60 6.32 1.26% Class B Shares 1,000.00 1,014.87 10.07 2.01% Class C Shares 1,000.00 1,014.87 10.07 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. 232 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 --------- --------- ---------------- ---------------- Structured Large Cap Plus Institutional Shares $1,000.00 $1,020.29 $ 4.62 0.92% Class A Shares 1,000.00 1,019.05 5.87 1.17% Class B Shares 1,000.00 1,015.32 9.62 1.92% Class C Shares 1,000.00 1,015.27 9.67 1.93% Equity Index Institutional Shares 1,000.00 1,023.92 0.96 0.19% Class A Shares 1,000.00 1,022.68 2.21 0.44% Class B Shares 1,000.00 1,018.95 5.97 1.19% Class C Shares 1,000.00 1,018.95 5.97 1.19% Select shares 1,000.00 1,023.52 1.36 0.27% Preferred Shares 1,000.00 1,023.17 1.71 0.34% Trust Shares 1,000.00 1,022.68 2.21 0.44% International Equity Institutional Shares 1,000.00 1,018.85 6.07 1.21% Class A Shares 1,000.00 1,017.60 7.32 1.46% Class B Shares 1,000.00 1,013.87 11.07 2.21% Class C Shares 1,000.00 1,013.87 11.07 2.21% Strategic Income Institutional Shares 1,000.00 1,020.09 4.82 0.96% Class A Shares 1,000.00 1,018.85 6.07 1.21% Class B Shares 1,000.00 1,015.12 9.82 1.96% Class C Shares 1,000.00 1,015.12 9.82 1.96% LifeModel Aggressive(SM) Institutional Shares 1,000.00 1,024.47 0.40 0.08% Class A Shares 1,000.00 1,023.27 1.66 0.33% Class B Shares 1,000.00 1,019.49 5.42 1.08% Class C Shares 1,000.00 1,019.49 5.42 1.08% LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 1,024.47 0.40 0.08% Class A Shares 1,000.00 1,023.22 1.66 0.33% Class B Shares 1,000.00 1,019.49 5.42 1.08% Class C Shares 1,000.00 1,019.49 5.42 1.08% LifeModel Moderate(SM) Institutional Shares 1,000.00 1,024.47 0.40 0.08% Class A Shares 1,000.00 1,023.27 1.66 0.33% Class B Shares 1,000.00 1,019.49 5.42 1.08% Class C Shares 1,000.00 1,019.49 5.42 1.08% LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 1,024.47 0.40 0.08% Class A Shares 1,000.00 1,023.22 1.66 0.33% Class B Shares 1,000.00 1,019.49 5.42 1.08% Class C Shares 1,000.00 1,019.49 5.42 1.08% LifeModel Conservative(SM) Institutional Shares 1,000.00 1,024.47 0.40 0.08% Class A Shares 1,000.00 1,023.22 1.66 0.33% Class B Shares 1,000.00 1,019.49 5.42 1.08% Class C Shares 1,000.00 1,019.49 5.42 1.08% High Yield Bond Institutional Shares 1,000.00 1,021.18 3.72 0.74% Class A Shares 1,000.00 1,019.94 4.97 0.99% Class B Shares 1,000.00 1,016.21 8.72 1.74% Class C Shares 1,000.00 1,016.21 8.72 1.74% - ---------- * 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. 233 Fifth Third Funds Supplemental Information (unaudited), continued - -------------------------------------------------------------------------------- Expense Expense Beginning Ending Paid Ratio Account Account During During Value Value Period* Period 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 --------- --------- ---------------- ---------------- Total Return Bond Institutional Shares $1,000.00 $1,021.53 $3.37 0.67% Class A Shares 1,000.00 1,020.29 4.62 0.92% Class B Shares 1,000.00 1,016.51 8.42 1.68% Class C Shares 1,000.00 1,016.51 8.42 1.68% Short Term Bond Institutional Shares 1,000.00 1,021.68 3.22 0.64% Class A Shares 1,000.00 1,020.44 4.47 0.89% Class C Shares 1,000.00 1,016.71 8.22 1.64% Municipal Bond Institutional Shares 1,000.00 1,021.83 3.07 0.61% Class A Shares 1,000.00 1,020.59 4.32 0.86% Class B Shares 1,000.00 1,016.86 8.07 1.61% Class C Shares 1,000.00 1,016.86 8.07 1.61% Intermediate Municipal Bond Institutional Shares 1,000.00 1,021.68 3.22 0.64% Class A Shares 1,000.00 1,020.44 4.47 0.89% Class B Shares 1,000.00 1,020.44 4.47 0.89% Class C Shares 1,000.00 1,016.71 8.22 1.64% Ohio Municipal Bond Institutional Shares 1,000.00 1,020.93 3.97 0.79% Class A Shares 1,000.00 1,019.69 5.22 1.04% Class B Shares 1,000.00 1,015.96 8.97 1.79% Class C Shares 1,000.00 1,015.96 8.97 1.79% Michigan Municipal Bond Institutional Shares 1,000.00 1,021.48 3.42 0.68% Class A Shares 1,000.00 1,020.79 4.17 0.83% Class B Shares 1,000.00 1,016.51 8.42 1.68% Class C Shares 1,000.00 1,016.51 8.42 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. 234 This page intentionally left blank. 235 This page intentionally left blank. 236 This page intentionally left blank. 237 This page intentionally left blank. 238 This page intentionally left blank. 239 This page intentionally left blank. 240 Addresses - -------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds 38 Fountain Square Plaza Cincinnati, Ohio 45202 - -------------------------------------------------------------------------------- Investment Advisor, Administrator Fifth Third Asset Management, Inc. and Accountant 38 Fountain Square Plaza Cincinnati, Ohio 45202 - -------------------------------------------------------------------------------- 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 State Street Bank and Trust Company Sub-Administrator 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 PricewaterhouseCoopers LLP Accounting Firm 1055 Broadway, 10th Floor Kansas City, MO 64105 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Advised by [LOGO] FIFTH THIRD ASSET MANAGEMENT [GRAPHIC] BEYOND THE TRADITIONAL 1-800-282-5706 FTF1358 073109 AR-STBD-08 9/08 - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS 2008 MONEY MARKET MUTUAL FUNDS Annual Report to Shareholders July 31, 2008 Advised by FTAM FIFTH THIRD ASSET MANAGEMENT NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to 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 OUR MESSAGE TO YOU Economic Outlook and Commentary Section ................ 1 Manager Commentary ................... 3 Schedules of Investments ............. 5 Statements of Assets and Liabilities ................... 32 Statements of Operations ............. 34 Statements of Changes in Net Assets ..................... 36 Financial Highlights ................. 40 Notes to Financial Statements ........ 46 Report of Independent Registered Public Accounting Firm ............ 55 Supplemental Information ............. 56 The past fiscal year proved trying for equity and fixed income markets alike, generating losses for investors worldwide, including many Fifth Third Funds shareholders. In the weeks following the close of the fiscal year, dramatic volatility, particularly in the financial sector, continued to disrupt equity and fixed income markets. The bailouts of government-sponsored enterprises such as Freddie Mac and Fannie Mae, coupled with the bankruptcy of Lehman Brothers Holdings and issues with other entities such as insurer American International Group, rattled confidence in the entire financial system, which heightened anxieties. During such periods of uncertainty, your Fifth Third Funds portfolio managers steadily monitor developments and revisit all holdings to ensure that fundamentals remain sound and our reasons for investing still ring true, regardless of the broader market's actions. Returning to the time frame covered by this annual report - the 12-month period ending July 31, 2008 - stock market losses were considerable, including: o A 11.09% decline for the S&P 500 Index of large cap stocks. o A 4.96% decline for the S&P 400 Index of mid cap stocks. o A 8.28% decline for the S&P 600 Index of small cap stocks. o A 12.19% decline for the MSCI EAFE Index of international stocks. Few corners of the market were spared from the broad-based selloff as the U.S. contended with a slowing economy, tumbling housing market and rising inflationary pressures. Growth stocks generally outperformed value holdings during the period and investors tended to avoid companies with any hint of a problem. Globally, developing economies generally benefited from soaring commodity prices and in turn, emerging market stocks outperformed those from established economies during the 12-month period. We know periods such as these can be discouraging for investors of all stripes, as no one enjoys seeing hard-earning savings eroded by market forces. But in the face of such turmoil, we believe it is important to remember the value of a well-diversified portfolio to help mitigate volatility in near-term storms. Taking a step back, a number of factors contributed to the financial market's malaise during the fiscal year, including: 1. The dramatic downturn in the financials sector, fueled by collapsing debt markets, a deteriorating housing industry and a wide-scale push to raise capital. After feasting on cheap credit and growing increasingly sloppy with lending standards over the past few years, many banks had their comeuppance during the period and struggled with plummeting share prices. 2. Credit market woes. From municipal market issues to high yield bonds, fixed income investments saw minimal appreciation - if any - during the period. Much of the performance stemmed from a wide-scale aversion to risk, which started in the mortgage-related securities and spread to asset-backed and corporate bonds. With little discrimination between varied quality profiles, we believe that the broad downturn potentially resulted in attractive opportunities for long-term investors to add high quality bonds on the cheap. 3. Spiking commodity prices. As oil surged to more than $140 a barrel, grains climbed to new highs and raw materials soared, inflationary concerns swept across the globe. Driven in part by strong demand from developing economies, the rising prices propped up costs on everything from breakfast cereal to jet fuel. 4. The U.S. economic slowdown. As housing values kept retreating and gasoline prices marched steadily higher, consumer confidence eroded through the latter portion of the period. The Federal Reserve responded by slashing its key lending rate from 5.25% to 2.00% over the 12-month period. Risk-averse financial institutions scaled back credit operations none the less. The economic stimulus payments distributed during the summer provided a lift in consumer spending, but the long-term effect remains unclear. 5. Reasonably sound corporate profit growth. Aside from the well-documented challenges facing the financials sector, many U.S. corporations reported relatively healthy financial results, especially those with exposure to international markets. But since most equities were 1 painted with a negative brush during the market's retreat, FTAM believes historically low price-to-earnings ratios on some stocks potentially indicated attractive entry points in some cases. 6. Enduring economic growth rates around the world. Despite modest slowdowns and rising prices in 2008, many global economies remained generally robust during the period. Most remarkable was the performance of developing countries, which didn't collapse as soon as warning flags emerged in well-established economies. Instead, solid contributions from energy and materials producers buffered the emerging markets sector. Within the bond market, U.S. Treasury issues benefited from a general flight to quality and led the way during the 12-month period covered by this annual report. Riskier securities lagged significantly, with bonds tied to subprime mortgages trailing the market. Municipal bonds also slid as monoline insurers, which back debt issued by less-stable municipalities, sustained rating downgrades during the period. Cash investments contended with shrinking yields as the Federal Reserve trimmed its key lending rate from 5.25% to 2.00% over the 12-month period. While long-term interest rates fluctuated during the period, the U.S. Treasury yield curve steepened, with short-term yields falling farther than long-term rates. Although markets have struggled during the past 12 months, we believe investments in higher quality instruments may offer opportunities to benefit once the markets begin to recover. Packed with high quality stocks and bonds supported by solid fundamentals, we believe the family of Fifth Third Funds is well-positioned to weather the current turbulence. Enhancing my optimism is my belief that the Fifth Third portfolio managers are committed to seeking out the market's true drivers - today and down the road. Looking ahead, our expectations on the macro front include: o We predict no further rate cuts by the Federal Reserve in 2008. o We predict U.S. economic growth conditions slowing in the second half of 2008. We expect increased anxiety about an actual contraction in the economy during early 2009. o We predict all troubles lead to housing. We expect near-term weakness, but our early 2009 thoughts are potentially more positive at present. We believe we may be close to the bottom. o We predict global economic growth around 4% for 2008, although the economic climate is slowing worldwide. o Absent financials, which have pushed the average earnings results into negative territory, we predict respectable profit growth among U.S. corporations with annual earnings per share figures rising about 8%. o We predict a rebound in the value of the U.S. dollar. o We predict a possible restoration of traditional risk-reward profiles in the fixed income market. In closing, market developments since the fiscal year's start on August 1, 2007, have been challenging and investors' patience has been tested. More successful investors, however, tend to recognize that markets swing both up and down and recognize the importance of an overall well-diversified investment portfolio to help achieve their invesment goal. Importantly, our holdings are quality oriented and reflect strong fundamentals. Knowing from past experience that such stocks and bonds historically lead the market, I am confident that your patience in our Funds will ultimately be rewarded. 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 (UNAUDITED) MONEY MARKET FUNDS For the 12-month period ending July 31, 2008, the Fifth Third Money Market Funds experienced steadily declining yields on an absolute basis. The descent resulted primarily from an easing monetary policy in which the Federal Reserve's Federal Open Market Committee (FOMC) cut the Federal Funds target rate seven times, moving from 5.25% to 2.00% over the 12-month period. Challenging financial and economic conditions throughout the period resulted in significant stress for the financial services industry. In an effort to restore capital market liquidity, the FOMC and Federal Reserve Chairman Ben Bernanke aggressively lowered short-term interest rates and initiated a number of other measures. Though these efforts lowered benchmark U.S. Treasury interest rates, they had a muted impact on liquidity and the broader fixed income market. At the period's end, the FOMC appeared focused on elevated inflation expectations as well as the downside risks to economic growth due to the threat of continued weakness in the housing and labor markets. A longer duration+ strategy designed to capture additional yield proved beneficial for the Funds as interest rates declined following the multiple reductions in the Federal Funds target rate. 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 U.S. Treasury Money Market Fund and the Fifth Third Institutional Government Money Market Fund. The Funds benefited from the active duration management and higher yields on floating interest rate securities. Furthermore, the additional liquidity allowed the Funds to readily cope with volatile cash flows. The Fifth Third Institutional Money Market and Fifth Third Prime Money Market Funds maintained a conservative orientation with continued emphasis on high quality security selection to achieve the principal preservation objective. Specifically, the Funds maintained no exposure to many of the problematic structures such as collateralized debt obligations (CDOs), structured investment vehicles (SIVs), and securities backed by subprime mortgages. Concerns over monoline insurers, which back certain municipal bonds, plagued municipal money markets for much of the period, resulting in greater demand for securities from higher quality issuers. In addition, market demand for money market investments increased further amid dramatic volatility in the equity and fixed income markets. In turn, both the Fifth Third Municipal Money Market Fund and the Fifth Third Michigan Municipal Money Market Fund faced difficulties in maintaining average maturities either in line or slightly longer than the iMoneyNet peer group. Managed conservatively, both Funds consisted of about 80% weekly and daily floater programs, most of which were backed by letters of credit. The balance 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 issues, which tend to be subject to lighter demand, although supply for Michigan-specific issues remained tight. + Duration is the weighted average maturity of a bond's cash flows. MATURITY COMPOSITION AS OF JULY 31, 2008 (UNAUDITED) - -------------------------------------------------------------------------------- Weighted Average Maturity# - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- DAYS DAYS AS OF 1/31/08 AS OF 7/31/08 - -------------------------------------------------------------------------------- Fifth Third Prime 47 48 Money Market - -------------------------------------------------------------------------------- Fifth Third Institutional 47 47 MoneyMarket - -------------------------------------------------------------------------------- Fifth Third Institutional 52 58 Government Money Market - -------------------------------------------------------------------------------- Fifth Third U.S. Treasury 30 31 Money Market - -------------------------------------------------------------------------------- Fifth Third Michigan 19 20 Municipal Money Market - -------------------------------------------------------------------------------- Fifth Third Municipal 19 16 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. (1) The 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 (UNAUDITED) MONEY MARKET MATURITY SCHEDULES (AS OF JULY 31, 2008) - -------------------------------------------------------------------------------- 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 - ------------------------------------------------------------------------------------------------------------------------------------ Fewer than 8 Days 46.5% 45.9% 36.6% 75.8% 90.3% 91.5% - ------------------------------------------------------------------------------------------------------------------------------------ 8 to 14 Days 1.6% 2.1% 2.1% 0.0% 0.0% 0.0% - ------------------------------------------------------------------------------------------------------------------------------------ 15 to 30 Days 13.8% 12.4% 13.7% 2.4% 1.2% 1.7% - ------------------------------------------------------------------------------------------------------------------------------------ 31 to 180 Days 31.6% 34.8% 40.3% 16.4% 4.2% 5.4% - ------------------------------------------------------------------------------------------------------------------------------------ 181 to 365 Days 6.5% 4.8% 7.3% 5.4% 4.3% 1.4% - ------------------------------------------------------------------------------------------------------------------------------------ 366 to 397 Days 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - ------------------------------------------------------------------------------------------------------------------------------------ 4 PRIME MONEY MARKET SCHEDULE OF INVESTMENTS JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- CORPORATE BONDS (19.8%) COMMERCIAL BANKS-CENTRAL U.S. (3.6%) US Bank NA, 4.40%, 8/15/08 $ 8,310,000 $ 8,307,933 US Bank NA, 2.78%, 9/3/08 10,000,000 10,000,000 US Bank NA, 2.82%, 10/21/08 25,000,000 25,000,000 US Bank NA, 2.95%, 4/27/09 15,000,000 15,000,000 ------------ 58,307,933 ------------ COMPUTERS (0.5%) International Business Machines Corp., 4.38%, 6/1/09 7,423,000 7,502,512 ------------ COSMETICS & TOILETRIES (0.9%) Procter & Gamble Co., 3.50%, 12/15/08 15,000,000 15,027,200 ------------ DIVERSIFIED FINANCIAL SERVICES (3.3%) General Electric Capital Corp., 2.53%, 8/22/08 (a) (d) 5,000,000 4,999,999 General Electric Capital Corp., 2.88%, 9/15/08 (a) (d) 5,000,000 4,999,540 General Electric Capital Corp., 3.60%, 10/15/08 7,500,000 7,495,790 General Electric Capital Corp., 4.00%, 2/17/09 5,000,000 5,027,458 General Electric Capital Corp., 3.13%, 4/1/09 5,000,000 5,004,651 General Electric Capital Corp., 4.00%, 6/15/09 8,000,000 8,057,375 IBM International Group Capital LLC, 3.13%, 10/29/08 (a) (d) 17,930,000 17,990,304 ------------ 53,575,117 ------------ FIDUCIARY BANKS (0.6%) Mellon Funding Corp., 3.25%, 4/1/09 10,000,000 10,011,697 ------------ FINANCE-CONSUMER LOANS (0.6%) HSBC Finance Corp., Series EXL, 2.48%, 8/7/08 (a) (d) 10,000,000 10,000,000 ------------ FINANCE-INVESTMENT BANKER/BROKER (1.6%) Bear Stearns Cos., Inc. (The), 2.56%, 8/7/08 (a) (d) 20,000,000 20,000,000 Credit Suisse USA, Inc., 3.88%, 1/15/09 5,819,000 5,835,009 ------------ 25,835,009 ------------ INTEGRATED OIL & GAS (1.4%) BP Capital Markets PLC, 2.79%, 9/11/08 (a) (d) 15,000,000 15,000,000 Texaco Capital, Inc., 5.50%, 1/15/09 7,500,000 7,587,006 ------------ 22,587,006 ------------ MEDICAL-DRUGS (0.3%) Abbott Laboratories, 5.38%, 5/15/09 5,000,000 5,094,740 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- CORPORATE BONDS, CONTINUED RETAIL (0.5%) Wal-Mart Stores, Inc., 3.38%, 10/1/08 $ 7,640,000 $ 7,632,077 ------------ SPECIAL PURPOSE ENTITY (1.3%) Florida Hurricane Catastrophe Fund, Series 2006-B, 2.67%, 8/15/08 (a) (d) 10,000,000 9,975,796 Florida Hurricane Catastrophe Fund, Series 2006-B, 2.67%, 8/15/08 (a) (d) 12,000,000 12,000,000 ------------ 21,975,796 ------------ SUPER-REGIONAL BANKS-U.S. (5.2%) Bank One Corp., 6.00%, 8/1/08 13,534,000 13,534,000 SunTrust Banks, Inc., 4.00%, 10/15/08 6,190,000 6,192,269 Wachovia Bank NA, 2.12%, 8/1/08 (a) (d) 5,000,000 4,994,276 Wachovia Bank NA, 2.76%, 10/3/08 (a) (d) 12,000,000 12,001,649 Wachovia Corp., 3.63%, 2/17/09 1,707,000 1,708,774 Wells Fargo & Co., 2.61%, 8/15/08 (a) (d) 25,000,000 25,000,000 Wells Fargo & Co., 4.00%, 8/15/08 6,300,000 6,299,467 Wells Fargo & Co., 3.13%, 4/1/09 13,207,000 13,209,991 ------------ 82,940,426 ------------ TOTAL CORPORATE BONDS 320,489,513 ------------ FOREIGN BONDS (2.7%) COMMERCIAL BANKS-EASTERN U.S. (1.3%) Deutsche Bank AG, 2.27%, 8/1/08 (a) (d) 15,000,000 15,000,000 Deutsche Bank AG, 2.46%, 8/9/08 (a) (d) 5,000,000 4,994,967 ------------ 19,994,967 ------------ COMMERCIAL BANKS NON-U.S. (0.9%) BNP Paribas, 2.90%, 8/13/08 (a) (d) 15,000,000 15,000,000 ------------ SPECIAL PURPOSE ENTITY (0.5%) Procter & Gamble International Funding SCA, 2.79%, 8/19/08 (a) (d) 8,000,000 8,000,000 ------------ TOTAL FOREIGN BONDS 42,994,967 ------------ U.S. GOVERNMENT AGENCIES (6.5%) FANNIE MAE (0.6%) 5.25%, 1/15/09 10,000,000 10,109,766 ------------ FEDERAL HOME LOAN BANK (5.4%) 2.33%, 8/7/08 ** 25,000,000 24,990,292 2.56%, 8/20/08 (a) (d) 8,000,000 8,000,000 3.88%, 8/22/08 790,000 789,556 2.44%, 9/3/08 ** 10,000,000 9,977,633 4.63%, 11/21/08 5,850,000 5,884,030 2.70%, 12/10/08 ** 10,000,000 9,901,750 5.48%, 1/8/09 5,000,000 5,056,312 2.90%, 2/27/09 10,000,000 10,000,000 2.63%, 6/4/09 12,040,000 12,011,827 ------------ 86,611,400 ------------ Continued 5 PRIME MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED FREDDIE MAC (0.5%) 2.55%, 4/21/09 $ 8,000,000 $ 7,999,395 ------------ TOTAL U.S. GOVERNMENT AGENCIES 104,720,561 ------------ CERTIFICATES OF DEPOSIT (3.4%) COMMERCIAL BANKS-CENTRAL U.S. (0.9%) Bank of Montreal, 2.95%, 8/18/08 15,000,000 15,000,000 ------------ COMMERCIAL BANKS-EASTERN U.S. (2.2%) Allied Irish Banks, 2.65%, 8/21/08 15,000,000 15,000,041 Barclays PLC, 2.85%, 10/2/08 20,000,000 20,000,000 ------------ 35,000,041 ------------ MONEY CENTER BANKS (0.3%) Bank of New York, 5.41%, 5/15/09 5,000,000 5,083,409 ------------ TOTAL CERTIFICATES OF DEPOSIT 55,083,450 ------------ COMMERCIAL PAPER (28.6%) COMMERCIAL BANKS NON-U.S. (5.4%) Bank of Nova Scotia, 2.49%, 8/8/08 ** 10,000,000 9,995,158 Bank of Nova Scotia, 2.73%, 9/23/08 ** 25,000,000 24,899,521 Barclays US Funding LLC, 2.60%, 9/4/08 ** 2,700,000 2,693,370 Barclays US Funding LLC, 2.69%, 9/4/08 ** 10,000,000 9,974,595 National Australia Funding, 2.66%, 8/4/08 ** 10,000,000 9,997,783 National Australia Funding, 2.71%, 10/1/08 ** 20,000,000 19,908,331 Toronto Dominion Holding, 2.55%, 9/5/08 ** 10,000,000 9,975,208 ------------ 87,443,966 ------------ DIVERSIFIED FINANCIAL SERVICES (2.9%) General Electric Capital Co., 2.52%, 8/6/08 ** 15,000,000 14,994,750 General Electric Capital Co., 2.45%, 9/22/08 ** 15,000,000 14,946,917 General Electric Capital Co., 2.83%, 1/7/09 ** 7,500,000 7,406,256 Rabobank USA Financial Co., 2.64%, 10/24/08 10,000,000 9,938,400 ------------ 47,286,323 ------------ FIDUCIARY BANKS (0.6%) State Street Boston Corp., 2.36%, 9/9/08 ** 10,000,000 9,974,433 ------------ FINANCE-AUTO LOANS (5.8%) American Honda Finance, 2.42%, 9/10/08 ** 20,000,000 19,946,222 American Honda Finance, 2.45%, 9/11/08 ** 10,000,000 9,972,097 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED FINANCE-AUTO LOANS, CONTINUED Toyota Motor Credit Co., 2.25%, 8/29/08 ** $ 15,000,000 $ 14,973,750 Toyota Motor Credit Corp., 2.40%, 9/17/08 ** 10,000,000 9,968,667 Toyota Motor Credit Corp., 2.63%, 10/21/08 ** 10,000,000 9,940,825 Toyota Motor Credit Corp., 2.61%, 11/7/08 ** 10,000,000 9,928,950 Toyota Motor Credit Corp., 2.58%, 12/1/08 ** 10,000,000 9,912,567 Toyota Motor Credit Corp., 2.85%, 12/9/08 ** 10,000,000 9,897,083 ------------ 94,540,161 ------------ FINANCE-CREDIT CARD (0.9%) American Express Credit Card, 2.39%, 8/28/08 ** 15,000,000 14,973,112 ------------ FINANCE-INVESTMENT BANKER/BROKER (2.2%) BNP Paribas Finance, Inc., 2.72%, 10/24/08 ** 15,000,000 14,904,765 Citigroup Funding, Inc., 2.82%, 9/16/08 ** 10,000,000 9,963,967 Citigroup Funding, Inc., 2.82%, 10/16/08 ** 10,000,000 9,940,467 ------------ 34,809,199 ------------ MEDICAL-HOSPITALS (0.9%) Essential Health, 2.80%, 9/8/08 ** 13,945,000 13,903,785 ------------ REGIONAL AUTHORITY (1.4%) Michigan State Multifamily Housing Project, 4.85%, 10/28/08 10,000,000 10,000,000 San Jose International Airport, 2.65%, 9/11/08 ** 12,879,000 12,840,130 ------------ 22,840,130 ------------ SPECIAL PURPOSE ENTITY (7.5%) AIG Funding , Inc., 2.50%, 8/5/08 20,000,000 19,994,445 Nestle Capital Corp., 2.35%, 10/31/08 ** (b) 7,000,000 6,958,418 Old Line Funding LLC, 2.52%, 8/5/08 ** (b) 15,000,000 14,995,800 Old Line Funding LLC, 2.50%, 8/19/08 ** (b) 16,649,000 16,628,189 Societe General, 2.62%, 8/6/08 ** 21,965,000 21,957,007 Societe General, 2.72%, 8/6/08 ** 14,185,000 14,179,641 Societe General, 2.63%, 8/12/08 ** 10,000,000 9,991,964 Societe General, 2.80%, 9/12/08 ** 15,300,000 15,250,020 ------------ 119,955,484 ------------ Continued 6 PRIME MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED SUPER-REGIONAL BANKS-U.S. (1.0%) Bank of America Corp., 2.75%, 8/11/08 ** $ 5,900,000 $ 5,895,493 Wells Fargo & Co., 2.43%, 8/13/08 ** 10,000,000 9,991,900 ------------ 15,887,393 ------------ TOTAL COMMERCIAL PAPER 461,613,986 ------------ DEMAND NOTES (8.9%) DIVERSIFIED FINANCIAL SERVICES (0.6%) Harry W. Albright JR, Series 1996, 3.00%, 8/7/08, (LOC: Bank of America) (a) (d) 5,485,000 5,485,000 Woods Group LLC, Series 2007-A, 2.71%, 9/1/32, (LOC: Regions Bank) (b) 3,975,000 3,975,000 ------------ 9,460,000 ------------ FINANCE-OTHER SERVICES (0.5%) Mortgage Bankers Association of America, 2.66%, 8/1/08, (LOC: PNC Bank NA) (a) (d) 8,000,000 8,000,000 ------------ FINANCIAL (0.4%) Cornerstone Funding Corp., Series 2001-C, 2.50%, 12/1/11, (LOC: SunTrust Banks, Inc.) (a) 7,457,000 7,457,000 ------------ SPECIAL PURPOSE ENTITY (7.4%) Buckeye Corrugated, Inc., Series 1997, 3.00%, 8/6/08, (LOC: KeyBank NA) (a) (b) (d) 4,100,000 4,100,000 Bybee Foods LLC Taxable Adjustable Rate Notes, Series 2006, 3.00%, 8/6/08, (LOC: KeyBank NA) (a) (d) 1,600,000 1,600,000 Capital One Funding Corp., Series 1996-H, 3.46%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 660,000 660,000 Capital One Funding Corp., Series 1997-D, 2.76%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 507,000 507,000 Capital One Funding Corp., Series 1999-D, 2.76%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 885,000 885,000 Capital One Funding Corp., Series 2001-C, 2.66%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 2,163,000 2,163,000 Central Michigan Inns, 2.75%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 960,000 960,000 CHF - Elon LLC, Series 2005, 2.66%, 8/7/08, (LOC: Regions Bank) (a) (b) (d) 19,850,000 19,850,000 Clare at Water Tower (The), Series 2005, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 12,500,000 12,500,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- DEMAND NOTES, CONTINUED SPECIAL PURPOSE ENTITY, CONTINUED Doctors Park LLP, 2.75%, 8/7/08, (LOC: US Bancorp) (a) (d) $ 9,310,000 $ 9,310,000 Erickson Foundation, Inc. (The), 2.55%, 8/7/08, (LOC: FHLB) (a) (d) 15,000,000 15,000,000 Fort Bend Church (The), 3.01%, 8/7/08, (LOC: Regions Bank) (a) (d) 6,200,000 6,200,000 Iowa 80 Group, Inc., 2.78%, 9/1/08, (LOC: Wells Fargo & Co.) (a) (d) 3,230,000 3,230,000 Jackson 2000 LLC, Series 1999, 3.00%, 8/6/08, (LOC: KeyBank NA) (a) (d) 8,440,000 8,440,000 Landmark Medical LLC, Series 2000, 3.46%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 6,480,000 6,480,000 Lincoln Hills Development Corp., 2.71%, 8/7/08, (LOC: Regions Bank) (a) (d) 3,080,000 3,080,000 New Belgium Brewing Co., Inc., Series 2000, 2.56%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 2,110,000 2,110,000 PCI Paper Conversions, Inc., Series 2000, 3.00%, 8/6/08, (LOC: KeyBank NA) (a) (d) 940,000 940,000 Royal Town Center LLC, Series 1997, 3.00%, 8/6/08, (LOC: FHLB) (a) (b) (d) 5,095,000 5,095,000 SDK Cameron LLC, Series 2005, 2.76%, 8/7/08, (LOC: Comerica Bank) (a) (b) (d) 3,090,000 3,090,000 SGS Tool Co., Series 1999, 2.71%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 2,450,000 2,450,000 St. Andrew United Methodist Church, 2.55%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 10,835,000 10,835,000 ------------ 119,485,000 ------------ TOTAL DEMAND NOTES 144,402,000 ------------ MUNICIPAL DEMAND NOTES (12.2%) ALABAMA (0.5%) Albertville Industrial Development Board, Mitchell Grocery, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (d) 7,245,000 7,245,000 ------------ ALASKA (0.3%) Four Dam Pool Power Agency, Series B, 2.42%, 8/7/08, (LOC: Dexia Banque SA) (a) (d) 3,870,000 3,870,000 ------------ CALIFORNIA (2.4%) County of Sacramento, 2.65%, 8/6/08, (LOC: Bayerische Landesbank) (a) (d) 32,430,000 32,430,000 County of Riverside, CP, 2.65%, 8/6/08, (LOC: State Street Corp.) (a) (d) 6,500,000 6,500,000 ------------ 38,930,000 ------------ Continued 7 PRIME MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED COLORADO (0.1%) Pueblo Housing Authority, 2.56%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (b) (d) $ 1,620,000 $ 1,620,000 ------------ DELAWARE (0.7%) Revenue Bond Certificate Series Trust Various States, 2.71%, 8/7/08, (LOC: AIG) (a) (b) (d) 3,580,000 3,580,000 Metrodev Newark LLC, 2.85%, 8/7/08, (LOC: PNC Bank NA) (a) (d) 8,000,000 8,000,000 ------------ 11,580,000 ------------ FLORIDA (0.6%) County of Washington, Series B, 2.71%, 8/7/08, (LOC: SunTrust Banks, Inc.) (a) (d) 2,800,000 2,800,000 Development Finance Corp., Royal Enterprise Building Fund, Series B, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (b) (d) 7,085,000 7,085,000 ------------ 9,885,000 ------------ GEORGIA (1.0%) Columbus Development Authority, Litho-Krome Co. Project, 2.49%, 8/7/08, (LOC: Bank of America) (a) (d) 10,125,000 10,125,000 Mc Duffie County Development Authority, Thomson Plastics, Inc., 2.71%, 8/7/08, (LOC: Regions Bank) (a) (d) 6,505,000 6,505,000 ------------ 16,630,000 ------------ ILLINOIS (0.7%) Finance Authority, Fairview, Series D, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 4,455,000 4,455,000 Finance Authority, Franciscan Communities, Series B, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 5,955,000 5,955,000 ------------ 10,410,000 ------------ INDIANA (0.1%) State Finance Authority, Series B, 2.56%, 8/7/08, (LOC: Bank of America) (a) (d) 2,150,000 2,150,000 ------------ IOWA (0.4%) Dallas County Industrial Development, Sioux City Brick and Tile, Series B, 3.31%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 6,305,000 6,305,000 ------------ LOUISIANA (0.5%) Denham Springs Economic Development District, Bass Pro Shops Project, 2.66%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 8,460,000 8,460,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MISSISSIPPI (0.1%) Business Finance Corp., CPX Gulfport ES OPAG LLC, Series B, 2.56%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) $ 2,095,000 $ 2,095,000 ------------ NEW YORK (0.7%) New York City Housing Development Corp., Multi-Family Housing, Chelsea Centro, Series A, 2.56%, 8/6/08, (LOC: Bayerische Landesbank) (a) (d) 11,885,000 11,885,000 ------------ NORTH CAROLINA (0.7%) Roman Catholic Diocese of Raleigh, 2.51%, 8/7/08, (LOC: Bank of America) (a) (d) 11,880,000 11,880,000 ------------ OHIO (0.8%) Cleveland-Cuyahoga County Port Authority, Science Park LLC, Series B, 2.80%, 8/7/08, (LOC: KeyBank NA) (a) (d) 12,700,000 12,700,000 ------------ UTAH (1.2%) Utah Telecommunication Open Infrastructure Agency, 2.80%, 8/7/08, (LOC: KeyBank NA) (a) (d) 20,000,000 20,000,000 ------------ VIRGINIA (0.4%) Alexandria Industrial Development Authority, Series A, 2.61%, 8/7/08, (LOC: SunTrust Banks, Inc.) (a) (d) 5,950,000 5,950,000 ------------ WASHINGTON (1.0%) State Housing Finance Commission, Eaglepointe Apartments, Series B, 2.71%, 8/7/08, (LOC: AIG) (a) (d) 1,610,000 1,610,000 State Housing Finance Commission, Monticello Park Project, Series B, 2.57%, 8/7/08, (LOC: FNMA) (a) (d) 3,655,000 3,655,000 State Housing Finance Commission, Skyline At First, Series D, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 11,100,000 11,100,000 ------------ 16,365,000 ------------ TOTAL MUNICIPAL DEMAND NOTES 197,960,000 ------------ Continued 8 PRIME MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- MONEY MARKETS (5.4%) AIM STIT Liquid Assets Portfolio (c) 62,206,291 $ 62,206,291 Goldman Sachs Financial Square Funds - Prime Obligations Fund (c) 25,830,328 25,830,328 ------------ TOTAL MONEY MARKETS 88,036,619 ------------ PRINCIPAL AMOUNT - ----------------------------------------------------------------------------- REPURCHASE AGREEMENTS (12.4%) Deutsche Bank, 2.18%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $160,009,689, Collateralized by various U.S. Government Agency Securities, 0.00%-5.76%, 3/12/11-6/23/33, value $163,200,301) $160,000,000 160,000,000 UBS Investment Bank, 2.15%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $40,388,488, Collateralized by various U.S. Government Agency Securities, 0.00%, 2/17/09-4/27/09, value $41,196,258) 40,387,000 40,387,000 -------------- TOTAL REPURCHASE AGREEMENTS 200,387,000 -------------- TOTAL INVESTMENTS (COST $1,615,688,096)+ - 99.9% 1,615,688,096 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 2,048,358 -------------- NET ASSETS - 100.0% $1,617,736,454 ============== 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 July 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: CP - Certificates of Participation FHLB - Federal Home Loan Bank FNMA - Federal National Mortgage Association LOC - Letter of Credit See notes to schedules of investments and notes to financial statements. 9 INSTITUTIONAL MONEY MARKET SCHEDULE OF INVESTMENTS JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- CORPORATE BONDS (16.4%) COMMERCIAL BANKS-CENTRAL U.S. (3.0%) M&I Marshall & Ilsley Bank, Series BK, 2.45%, 8/25/08 (a) (d) $ 5,000,000 $ 4,999,188 US Bank NA, 4.40%, 8/15/08 12,957,000 12,955,483 US Bank NA, 2.78%, 9/3/08 25,000,000 25,000,000 US Bank NA, 2.82%, 10/21/08 25,000,000 25,000,000 US Bank NA, 2.95%, 4/27/09 20,000,000 20,000,000 ------------ 87,954,671 ------------ COMPUTERS (0.3%) International Business Machines Corp., 4.38%, 6/1/09 9,000,000 9,097,214 ------------ COSMETICS & TOILETRIES (0.9%) Procter & Gamble Co., 3.50%, 12/15/08 25,000,000 25,045,333 ------------ DIVERSIFIED FINANCIAL SERVICES (2.8%) General Electric Capital Corp., 2.53%, 8/22/08 (a) (d) 5,000,000 4,999,999 General Electric Capital Corp., 2.88%, 9/15/08 ** (a) (d) 13,410,000 13,409,151 General Electric Capital Corp., 3.60%, 10/15/08 21,125,000 21,121,613 General Electric Capital Corp., 4.00%, 2/17/09 5,000,000 5,027,458 General Electric Capital Corp., 3.13%, 4/1/09 5,000,000 5,004,651 General Electric Capital Corp., 4.00%, 6/15/09 12,000,000 12,086,063 IBM International Group Capital LLC, 3.13%, 10/29/08 (a) (d) 20,000,000 20,067,266 ------------ 81,716,201 ------------ FIDUCIARY BANKS (0.3%) Mellon Funding Corp., 3.25%, 4/1/09 10,000,000 10,011,697 ------------ FINANCE-CONSUMER LOANS (0.5%) HSBC Finance Corp., Series EXL, 2.48%, 8/7/08 (a) (d) 15,000,000 15,000,000 ------------ FINANCE-INVESTMENT BANKER/BROKER (1.3%) Bear Stearns Cos., Inc. (The), 2.56%, 8/7/08 (a) (d) 16,000,000 16,000,000 Credit Suisse USA, Inc., 2.81%, 9/9/08 (a) (d) 9,000,000 9,002,735 Credit Suisse USA, Inc., 3.88%, 1/15/09 13,000,000 13,035,765 ------------ 38,038,500 ------------ INTEGRATED OIL & GAS (1.5%) BP Capital Markets PLC, 2.79%, 9/11/08 (a) (d) 35,000,000 35,000,000 Texaco Capital, Inc., 5.50%, 1/15/09 9,865,000 9,977,247 ------------ 44,977,247 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- CORPORATE BONDS, CONTINUED MEDICAL-DRUGS (0.2%) Abbott Laboratories, 5.38%, 5/15/09 $ 5,000,000 $ 5,076,333 ------------ RETAIL (0.5%) Wal-Mart Stores, Inc., 3.38%, 10/1/08 15,000,000 14,970,024 ------------ SPECIAL PURPOSE ENTITY (1.4%) Florida Hurricane Catastrophe Fund, Series 2006-B, 2.67%, 8/15/08 (a) (d) 20,000,000 20,000,000 Florida Hurricane Catastrophe Fund, Series 2006-B, 2.67%, 8/15/08 (a) (d) 20,000,000 19,951,591 ------------ 39,951,591 ------------ SUPER-REGIONAL BANKS-U.S. (3.7%) Bank One Corp., 6.00%, 8/1/08 19,000,000 19,000,000 SunTrust Banks, Inc., 4.00%, 10/15/08 8,000,000 8,002,932 Wachovia Bank NA, 2.12%, 8/1/08 (a) (d) 15,000,000 14,982,828 Wachovia Bank NA, 4.38%, 8/15/08 8,082,000 8,079,983 Wachovia Bank NA, 2.76%, 10/3/08 (a) (d) 17,000,000 17,002,147 Wachovia Bank NA, 2.87%, 10/25/08 (a) (d) 10,000,000 9,997,171 Wachovia Corp., 3.50%, 8/15/08 4,000,000 3,997,463 Wells Fargo & Co., 2.61%, 8/15/08 (a) (d) 10,000,000 10,000,000 Wells Fargo & Co., 4.00%, 8/15/08 5,000,000 4,998,113 Wells Fargo & Co., 3.13%, 4/1/09 12,000,000 11,994,769 ------------ 108,055,406 ------------ TOTAL CORPORATE BONDS 479,894,217 ------------ FOREIGN BONDS (2.8%) COMMERCIAL BANKS-EASTERN U.S. (1.3%) Deutsche Bank AG, 2.27%, 8/1/08 (a) (d) 25,000,000 25,000,000 Deutsche Bank AG, 2.46%, 8/9/08 (a) (d) 15,000,000 14,984,901 ------------ 39,984,901 ------------ COMMERCIAL BANKS NON-U.S. (0.9%) BNP Paribas, 2.90%, 8/13/08 (a) (d) 25,000,000 25,000,000 ------------ SPECIAL PURPOSE ENTITY (0.6%) Procter & Gamble International Funding SCA, 2.79%, 8/19/08 (a) (d) 17,000,000 17,000,000 ------------ TOTAL FOREIGN BONDS 81,984,901 ------------ MORTGAGE-BACKED SECURITIES (0.3%) CMBS OTHER (0.3%) Freddie Mac, 2.46%, 8/7/08 (a) (d) 7,574,424 7,574,424 ------------ TOTAL MORTGAGE-BACKED SECURITIES 7,574,424 ------------ U.S. GOVERNMENT AGENCIES (7.6%) FANNIE MAE (0.9%) 3.88%, 11/17/08 5,000,000 5,017,323 5.25%, 1/15/09 20,000,000 20,219,532 ------------ 25,236,855 ------------ Continued 10 INSTITUTIONAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED FEDERAL HOME LOAN BANK (6.0%) 2.23%, 8/22/08 ** $ 50,000,000 $ 49,934,958 5.80%, 9/2/08 12,555,000 12,588,189 2.44%, 9/3/08 ** 20,000,000 19,955,267 2.40%, 9/10/08 ** 4,535,000 4,522,907 2.38%, 11/3/08 ** 15,478,000 15,381,813 2.70%, 12/10/08 ** 20,100,000 19,902,518 5.48%, 1/8/09 5,000,000 5,056,312 2.90%, 2/27/09 25,000,000 25,000,000 2.63%, 6/4/09 24,000,000 23,943,841 ------------ 176,285,805 ------------ FREDDIE MAC (0.7%) 4.75%, 10/17/08 4,000,000 4,017,562 4.75%, 3/5/09 5,000,000 5,053,191 2.55%, 4/21/09 12,000,000 11,999,093 ------------ 21,069,846 ------------ TOTAL U.S. GOVERNMENT AGENCIES 222,592,506 ------------ CERTIFICATES OF DEPOSIT (4.8%) COMMERCIAL BANKS-CENTRAL U.S. (1.2%) Bank of Montreal, 2.95%, 8/18/08 35,000,000 35,000,000 ------------ COMMERCIAL BANKS-EASTERN U.S. (2.6%) Allied Irish Banks, 2.65%, 8/21/08 20,000,000 20,000,055 Allied Irish Banks, 2.45%, 8/29/08 ** (b) 25,000,000 24,952,361 Barclays PLC, 2.85%, 10/2/08 30,000,000 30,000,000 ------------ 74,952,416 ------------ COMMERCIAL BANKS-SOUTHERN U.S. (0.5%) Branch Banking & Trust Co., 2.80%, 10/27/08 15,000,000 15,000,000 ------------ MONEY CENTER BANKS (0.5%) Bank of New York, 5.41%, 5/15/09 15,000,000 15,250,228 ------------ TOTAL CERTIFICATES OF DEPOSIT 140,202,644 ------------ COMMERCIAL PAPER (31.2%) COMMERCIAL BANKS NON-U.S. (5.7%) Bank of Nova Scotia, 2.49%, 8/8/08 ** 25,000,000 24,987,896 Bank of Nova Scotia, 2.73%, 9/23/08 ** 25,000,000 24,899,521 Barclays US Funding LLC, 2.69%, 9/4/08 ** 25,000,000 24,936,486 National Australia Funding, 2.66%, 8/4/08 ** 20,000,000 19,995,566 National Australia Funding, 2.71%, 10/1/08 ** 30,000,000 29,862,496 Toronto Dominion Holding, 2.55%, 9/5/08 ** 25,000,000 24,938,021 Toronto Dominion Holding, 2.57%, 9/11/08 ** (b) 19,585,000 19,527,676 ------------ 169,147,662 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED DIVERSIFIED FINANCIAL SERVICES (2.8%) General Electric Capital Co., 2.40%, 8/1/08 ** $ 20,000,000 $ 20,000,000 General Electric Capital Co., 2.44%, 9/22/08 ** 15,000,000 14,947,133 General Electric Capital Co., 2.83%, 1/7/09 ** 15,000,000 14,812,512 General Electric Capital Co., 2.84%, 1/26/09 ** 15,000,000 14,789,367 Rabobank USA Financial Co., 2.64%, 10/24/08 20,000,000 19,876,800 ------------ 84,425,812 ------------ FIDUCIARY BANKS (0.7%) State Street Boston Corp., 2.36%, 9/9/08 ** 20,000,000 19,948,867 ------------ FINANCE-AUTO LOANS (6.0%) American Honda Finance, 2.42%, 9/10/08 ** 35,000,000 34,905,889 American Honda Finance, 2.45%, 9/11/08 ** 15,000,000 14,958,146 Toyota Motor Credit Co., 2.25%, 8/29/08 ** 25,000,000 24,956,250 Toyota Motor Credit Corp., 2.40%, 9/17/08 ** 25,000,000 24,921,666 Toyota Motor Credit Corp., 2.70%, 10/21/08 ** 25,000,000 24,848,125 Toyota Motor Credit Corp., 2.61%, 11/7/08 ** 10,000,000 9,928,950 Toyota Motor Credit Corp., 2.58%, 12/1/08 ** 20,000,000 19,825,133 Toyota Motor Credit Corp., 2.85%, 12/9/08 ** 20,000,000 19,794,167 ------------ 174,138,326 ------------ FINANCE-CREDIT CARD (0.9%) American Express Credit Card, 2.39%, 8/28/08 ** 25,000,000 24,955,188 ------------ FINANCE-INVESTMENT BANKER/BROKER (3.1%) BNP Paribas Finance, Inc., 2.57%, 8/1/08 ** 17,025,000 17,025,000 BNP Paribas Finance, Inc., 2.72%, 10/24/08 ** 25,000,000 24,841,275 Citigroup Funding, Inc., 2.82%, 9/16/08 ** 25,000,000 24,909,917 Citigroup Funding, Inc., 2.82%, 10/16/08 ** 25,000,000 24,851,166 ------------ 91,627,358 ------------ INDUSTRIAL (0.3%) Mississippi Business Finance Corp., 2.64%, 8/25/08 8,100,000 8,100,000 ------------ Continued 11 INSTITUTIONAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED INSURANCE (0.5%) Prudential Funding LLC, 2.38%, 8/25/08 ** $ 15,000,000 $ 14,976,200 ------------ MEDICAL-HOSPITALS (0.9%) Essential Health, 2.80%, 9/8/08 ** 25,000,000 24,926,111 ------------ REGIONAL AUTHORITY (2.1%) Michigan State Multifamily Housing Project, 4.85%, 10/28/08 25,000,000 25,000,000 San Jose International Airport, 2.65%, 9/11/08 ** 36,013,000 35,904,309 ------------ 60,904,309 ------------ SPECIAL PURPOSE ENTITY (5.6%) AIG Funding , Inc., 2.50%, 8/5/08 20,000,000 19,994,444 Nestle Capital Corp., 2.35%, 10/31/08 ** (b) 12,000,000 11,928,717 Old Line Funding LLC, 2.52%, 8/5/08 ** (b) 25,000,000 24,993,000 Old Line Funding LLC, 2.50%, 8/19/08 ** (b) 30,000,000 29,962,500 Societe General, 2.65%, 8/6/08 ** 5,750,000 5,747,883 Societe General, 2.72%, 8/6/08 ** 27,000,000 26,989,800 Societe General, 2.75%, 8/6/08 ** 10,250,000 10,246,085 Societe General, 2.63%, 8/12/08 ** 25,000,000 24,979,910 Societe General, 2.80%, 9/10/08 ** 10,100,000 10,068,578 ------------ 164,910,917 ------------ SUPER-REGIONAL BANKS-U.S. (2.6%) Bank of America Corp., 2.58%, 8/5/08 ** 5,800,000 5,798,337 Wells Fargo & Co., 2.41%, 8/7/08 ** 35,000,000 34,985,942 Wells Fargo & Co., 2.43%, 8/13/08 ** 35,000,000 34,971,650 ------------ 75,755,929 ------------ TOTAL COMMERCIAL PAPER 913,816,679 ------------ DEMAND NOTES (6.6%) BUILDING PRODUCTION-CEMENT/AGGREGATE (0.9%) Sioux City Brick & Tile Co., 2.61%, 8/7/08, (LOC: U.S. Bancorp) (a) (b) (d) 24,850,000 24,850,000 ------------ FINANCE-OTHER SERVICES (1.3%) Lexington Financial Services LLC, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 20,920,000 20,920,000 Mortgage Bankers Association of America, 2.66%, 8/1/08, (LOC: PNC Bank NA) (a) (d) 17,000,000 17,000,000 ------------ 37,920,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- DEMAND NOTES, CONTINUED FINANCIAL (0.4%) Cornerstone Funding Corp., Series 2003-F, 2.50%, 11/1/23, (LOC: Comerica Bank) (a) $ 4,080,000 $ 4,080,000 Cornerstone Funding Corp., Series 2003-H, 2.59%, 1/1/34, (LOC: U.S. Bancorp) (a) 4,066,000 4,066,000 Praise Tabernacle Outreach, 2.71%, 6/1/24, (LOC: Comerica Bank) (a) 3,260,000 3,260,000 ------------ 11,406,000 ------------ REAL ESTATE (0.2%) Appletree Properties LLC, 2.51%, 7/1/26, (LOC: Regions Bank) 5,645,000 5,645,000 ------------ SPECIAL PURPOSE ENTITY (3.8%) Aquarium Parking Deck LLC, Series 2005, 2.65%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (d) 8,400,000 8,400,000 Baldwin County Sewer Service LLC, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (d) 12,279,000 12,279,000 Capital Markets Access Co. LC, Series 2005, 2.65%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (d) 7,980,000 7,980,000 Capital One Funding Corp., Series 2001-A, 3.96%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 2,805,000 2,805,000 Capital One Funding Corp., Series 2001-D, 3.96%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 418,000 418,000 CHF - Elon LLC, Series 2005, 2.66%, 8/7/08, (LOC: Regions Bank) (a) (b) (d) 6,900,000 6,900,000 Erickson Foundation, Inc. (The), 2.55%, 8/7/08, (LOC: FHLB) (a) (d) 25,000,000 25,000,000 Foster/Schweihofer Real Estate Co. LLC, Series 2003, 2.76%, 8/7/08, (LOC: Comerica Bank) (a) (d) 13,690,000 13,690,000 Gulf Gate Apartments, Series 2003, 2.46%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (b) (d) 4,000,000 4,000,000 J&S Properties, Inc., Series 2006, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (d) 3,925,000 3,925,000 McCullough Snappy Service Oil, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (b) (d) 4,125,000 4,125,000 Metaltec Steel Abrasive Co., Series 2004, 2.68%, 8/6/08, (LOC: Comerica Bank) (a) (d) 3,960,000 3,960,000 Northport Baptist Church, Series 2004, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (d) 2,800,000 2,800,000 Park Street Properties I LLC, Series 2004, 2.75%, 8/6/08, (LOC: US Bancorp) (a) (d) 11,535,000 11,535,000 Continued 12 INSTITUTIONAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- DEMAND NOTES, CONTINUED SPECIAL PURPOSE ENTITY, CONTINUED Pershing Drive Associates L.P., 2.80%, 8/7/08, (LOC: Royal Bank of Canada) (a) (d) $ 3,905,000 $ 3,905,000 ------------ 111,722,000 ------------ TOTAL DEMAND NOTES 191,543,000 ------------ MUNICIPAL DEMAND NOTES (13.1%) ARIZONA (0.2%) Glendale Industrial Development Authority, Thunderbird Garvin, Series B, 2.50%, 8/7/08, (LOC: Bank of New York Co., Inc.) (a) (d) 6,250,000 6,250,000 ------------ CALIFORNIA (0.8%) County of Sacramento, 2.65%, 8/6/08, (LOC: Bayerische Landesbank) (a) (d) 13,160,000 13,160,000 Kern Water Bank Authority, Series B, 2.46%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 4,159,000 4,159,000 Sacramento County Housing Authority, Multi-Family, Natomas Park Apartments, Series B, 2.58%, 8/7/08, (LOC: FNMA) (a) (d) 1,550,000 1,550,000 Statewide Communities Development Authority, Multi-Family Housing, Series X-T, 2.58%, 8/7/08, (LOC: FNMA) (a) (d) 900,000 900,000 Statewide Communities Development Authority, Multi-Family, Valley Palms Apartments, 2.56%, 8/7/08, (LOC: FNMA) (a) (d) 2,445,000 2,445,000 ------------ 22,214,000 ------------ FLORIDA (0.7%) City of Homestead, Speedway Project, 2.65%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (d) 8,875,000 8,875,000 Development Finance Corp., Royal Enterprise Building Fund, Series B, 2.71%, 8/7/08, (LOC: Regions Bank) (a) (b) (d) 10,945,000 10,945,000 ------------ 19,820,000 ------------ GEORGIA (0.5%) Augusta Housing Authority, Multi-Family, Westbury Creek Apartments, Series B, 3.00%, 8/6/08, (LOC: FNMA) (a) (d) 500,000 500,000 Georgia Municipal Gas Authority, 2.49%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 14,765,000 14,765,000 ------------ 15,265,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED ILLINOIS (0.6%) Finance Authority, Fairview, Series E, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) $ 6,250,000 $ 6,250,000 Finance Authority, Franciscan Communities, Series B, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 12,000,000 12,000,000 ------------ 18,250,000 ------------ INDIANA (1.2%) City of Indianapolis Economic Development, Multi-Family Housing, Pedcor Investments, Series B, 3.20%, 8/7/08, (LOC: FHLB) (a) (d) 970,000 970,000 Health Facility Financing Authority, Clark Memorial Hospital, Series B, 3.96%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 3,360,000 3,360,000 Health Facility Financing Authority, Community Foundation of Northwest Indiana, Series B, 2.55%, 8/7/08, (LOC: Bank of Montreal) (a) (d) 22,410,000 22,410,000 Terre Haute, Westminister Village, Series B, 2.57%, 8/7/08, (LOC: Sovereign Bank FSB) (a) (d) 9,300,000 9,300,000 ------------ 36,040,000 ------------ KENTUCKY (0.2%) Boone County, Northern Kentucky University Metropolitan Education and Training Services Center Project, 2.75%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 4,860,000 4,860,000 ------------ LOUISIANA (0.8%) Denham Springs Economic Development District, Bass Pro Shops, Series B, 2.71%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 15,680,000 15,680,000 St. Tammany Parish Economic & Industrial Development District, 2.71%, 8/6/08, (LOC: Regions Bank) (a) (d) 8,760,000 8,760,000 ------------ 24,440,000 ------------ MARYLAND (1.3%) Health & Higher Educational Facilities Authority, Adventist Healthcare, Series B, 2.55%, 8/7/08, (LOC: Bank of America) (a) (d) 19,060,000 19,060,000 Health & Higher Educational Facilities Authority, Charlestown Community, Series B, 2.55%, 8/6/08, (LOC: Bank of America) (a) (d) 17,400,000 17,400,000 ------------ 36,460,000 ------------ Continued 13 INSTITUTIONAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MASSACHUSETTS (0.7%) Simmons College, 2.65%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) $ 18,730,000 $ 18,730,000 ------------ MICHIGAN (0.1%) Canton Charter Township, GO, 2.56%, 8/6/08, (LOC: Comerica Bank) (a) (d) 1,500,000 1,500,000 Charter Township of Ypsilanti Capital Improvements, Series B, GO, 2.56%, 8/6/08, (LOC: Comerica Bank) (a) (d) 2,280,000 2,280,000 ------------ 3,780,000 ------------ MINNESOTA (0.1%) City of Plymouth, Carlson Center Project, 2.65%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 800,000 800,000 St. Paul Port Authority, Series S, 2.70%, 8/1/08, (LOC: Dexia Banque SA) (a) (d) 3,400,000 3,400,000 ------------ 4,200,000 ------------ MISSISSIPPI (0.6%) Business Finance Corp., Cellular South, Inc., 2.50%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 13,000,000 13,000,000 Business Finance Corp., Cellular South, Inc., 2.50%, 8/6/08, (LOC: Bank of America) (a) (b) (d) 3,850,000 3,850,000 ------------ 16,850,000 ------------ NEW MEXICO (0.2%) City of Albuquerque Industrial, KTECH Corp. Project, 2.46%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 4,545,000 4,545,000 City of Albuquerque Industrial, KTECH Corp. Project, 2.46%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 1,570,000 1,570,000 ------------ 6,115,000 ------------ NEW YORK (1.3%) New York City Housing Development Corp., Multi-Family Housing, Chelsea Centro, Series A, 2.56%, 8/6/08, (LOC: Bayerische Landesbank) (a) (d) 38,705,000 38,705,000 ------------ NORTH CAROLINA (0.2%) Roman Catholic Diocese of Raleigh, 2.51%, 8/7/08, (LOC: Bank of America) (a) (d) 6,360,000 6,360,000 ------------ OHIO (1.5%) Air Quality Development Authority, Steel Corp., Series B, 2.65%, 8/6/08, (LOC: Royal Bank of Scotland) (a) (d) 13,000,000 13,000,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED OHIO, CONTINUED Cleveland-Cuyahoga County Port Authority, Science Park LLC, Series B, 2.80%, 8/7/08, (LOC: KeyBank NA) (a) (d) $ 23,000,000 $ 23,000,000 County of Cuyahoga Health Care Facilities, Franciscan Communities, Series F, 2.51%, 8/7/08, (LOC: Bank of America) (a) (d) 1,915,000 1,915,000 County of Hamilton Health Care, Series C, 3.50%, 8/7/08, (LOC: PNC Bank NA) (a) (d) 6,635,000 6,635,000 ------------ 44,550,000 ------------ PENNSYLVANIA (0.1%) Berks County Industrial Development Authority, Lebanon Valley Mall, Series B, 2.71%, 8/6/08, (LOC: First Union National Bank) (a) (b) (d) 1,200,000 1,200,000 Berks County Municipal Authority, Phoebe-Devitt Homes, Series C, 2.51%, 8/7/08, (LOC: Sovereign Bank FSB) (a) (d) 2,770,000 2,770,000 ------------ 3,970,000 ------------ UTAH (1.1%) Tooele City Industrial Development, Series A, 2.65%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,400,000 1,400,000 Utah Telecommunication Open Infrastructure Agency, 2.80%, 8/7/08, (LOC: KeyBank NA) (a) (d) 30,000,000 30,000,000 ------------ 31,400,000 ------------ VIRGINIA (0.7%) Alexandria Industrial Development Authority, American Academy of Otolaryngology, Series A, 2.51%, 8/7/08, (LOC: Bank of America) (a) (d) 8,690,000 8,690,000 Alexandria Industrial Development Authority, Series A, 2.61%, 8/7/08, (LOC: SunTrust Banks, Inc.) (a) (d) 10,000,000 10,000,000 ------------ 18,690,000 ------------ WASHINGTON (0.1%) State Housing Finance Commission, Multi-Family, Granite Falls Retirement Plaza, Series B, 2.56%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 1,030,000 1,030,000 State Housing Finance Commission, Multi-Family, Sir Summer Ridge Associates, Series B, 2.70%, 8/1/08, (LOC: U.S. Bancorp) (a) (d) 605,000 605,000 Continued 14 INSTITUTIONAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED WASHINGTON, CONTINUED State Housing Finance Commission, Multi-Family, Vintage At Everett, Series B, 2.57%, 8/7/08, (LOC: FNMA) (a) (d) $ 2,000,000 $ 2,000,000 -------------- 3,635,000 -------------- WISCONSIN (0.1%) Health & Educational Facilities Authority, Upland Hills, Series D, 2.65%, 8/6/08, (LOC: Allied Irish Bank PLC) (a) (d) 1,845,000 1,845,000 -------------- TOTAL MUNICIPAL DEMAND NOTES 382,429,000 -------------- SHARES - ----------------------------------------------------------------------------- MONEY MARKETS (4.0%) AIM STIT Liquid Assets Portfolio (c) 112,635,467 112,635,467 Goldman Sachs Financial Square Funds - Prime Obligations Fund (c) 4,591,025 4,591,025 -------------- 117,226,492 -------------- TOTAL MONEY MARKETS 117,226,492 -------------- PRINCIPAL AMOUNT - ----------------------------------------------------------------------------- REPURCHASE AGREEMENTS (13.0%) Deutsche Bank, 2.18%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $240,014,533, Collateralized by various U.S. Government Agency Securities, 0.00%-5.63%, 6/30/09-3/14/36, value $244,800,288) $240,000,000 240,000,000 UBS Investment Bank, 2.15%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $141,167,835, Collateralized by various U.S. Government Agency Securities, 0.00%, 9/2/08-11/29/19, value $143,991,192) 141,166,000 141,166,000 -------------- 381,166,000 -------------- TOTAL REPURCHASE AGREEMENTS 381,166,000 -------------- TOTAL INVESTMENTS (COST $2,918,429,863)+ - 99.8% 2,918,429,863 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 5,394,369 -------------- NET ASSETS - 100.0% $2,923,824,232 ============== 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 July 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: CMBS - Commercial Mortgage-Backed Security FHLB - Federal Home Loan Bank FNMA - Federal National Mortgage Association GO - General Obligation LOC - Letter of Credit See notes to schedules of investments and notes to financial statements. 15 INSTITUTIONAL GOVERNMENT MONEY MARKET SCHEDULE OF INVESTMENTS JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MORTGAGE-BACKED SECURITIES (4.7%) CMBS OTHER (4.7%) Freddie Mac, 2.46%, 8/7/08 (a) (c) $ 1,734,190 $ 1,734,190 Freddie Mac, 2.46%, 8/7/08 (a) (c) 15,647,232 15,647,232 Freddie Mac, 2.46%, 8/7/08 (a) (c) 42,606,133 42,606,133 ------------ 59,987,555 ------------ TOTAL MORTGAGE-BACKED SECURITIES 59,987,555 ------------ U.S. GOVERNMENT AGENCIES (73.9%) FANNIE MAE (14.8%) 2.30%, 8/1/08 ** 5,765,000 5,765,000 3.25%, 8/15/08 6,280,000 6,282,470 2.20%, 8/18/08 ** 10,000,000 9,989,611 4.75%, 8/25/08 14,000,000 14,022,247 5.13%, 9/2/08 35,000,000 35,087,642 2.20%, 9/3/08 ** 15,000,000 14,969,750 2.35%, 9/10/08 ** 10,000,000 9,973,889 3.75%, 9/15/08 5,000,000 5,007,405 2.48%, 9/17/08 ** 16,900,000 16,845,282 2.19%, 10/8/08 ** 10,000,000 9,958,633 4.90%, 11/3/08 10,085,000 10,152,847 3.88%, 11/17/08 11,350,000 11,393,432 2.46%, 11/26/08 ** 10,000,000 9,920,050 3.38%, 12/15/08 9,936,000 9,972,437 2.33%, 12/26/08 ** 7,495,000 7,423,569 5.25%, 1/15/09 9,444,000 9,546,421 4.88%, 4/15/09 5,008,000 5,078,934 ------------ 191,389,619 ------------ FEDERAL FARM CREDIT BANK (4.2%) 2.33%, 8/2/08 (a) (c) 4,200,000 4,198,564 2.36%, 8/20/08 (a) (c) 15,000,000 15,000,000 2.31%, 8/23/08 (a) (c) 20,000,000 20,000,000 2.31%, 8/24/08 (a) (c) 12,000,000 11,998,184 3.75%, 1/15/09 2,355,000 2,373,101 4.13%, 4/15/09 1,253,000 1,267,621 ------------ 54,837,470 ------------ FEDERAL HOME LOAN BANK (36.7%) 2.09%, 8/1/08 (a) (c) 15,000,000 15,000,000 2.19%, 8/1/08 ** 10,000,000 10,000,000 2.20%, 8/6/08 ** 10,000,000 9,996,944 4.50%, 8/8/08 6,100,000 6,100,064 2.60%, 8/11/08 (a) (c) 4,000,000 4,000,564 2.29%, 8/12/08 (a) (c) 11,400,000 11,399,779 2.36%, 8/13/08 (a) (c) 14,000,000 13,999,175 5.25%, 8/14/08 15,000,000 15,016,068 2.59%, 8/15/08 (a) (c) 4,000,000 4,000,017 2.60%, 8/18/08 (a) (c) 3,750,000 3,750,624 2.56%, 8/20/08 (a) (c) 12,000,000 12,000,000 2.23%, 8/21/08 ** 25,000,000 24,969,028 2.48%, 8/21/08 (a) (c) 25,345,000 25,343,479 3.88%, 8/22/08 6,315,000 6,313,219 2.38%, 8/27/08 (a) (c) 25,000,000 25,000,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED FEDERAL HOME LOAN BANK, CONTINUED 2.44%, 9/4/08 (a) (c) $ 45,000,000 $ 45,002,026 4.25%, 9/12/08 10,650,000 10,652,079 2.38%, 9/17/08 ** 10,000,000 9,968,993 2.66%, 9/17/08 (a) (c) 4,000,000 4,000,000 2.48%, 9/24/08 ** 10,000,000 9,962,875 2.64%, 9/26/08 (a) (c) 14,000,000 13,990,085 4.25%, 9/26/08 1,000,000 999,719 2.57%, 10/2/08 (a) (c) 20,000,000 20,002,320 2.62%, 10/5/08 (a) (c) 25,000,000 25,005,989 2.35%, 10/8/08 ** 4,486,000 4,466,087 2.64%, 10/24/08 (a) (c) 5,000,000 5,001,145 2.62%, 10/30/08 (a) (c) 15,000,000 14,998,959 2.38%, 11/3/08 ** 5,000,000 4,968,928 3.63%, 11/14/08 9,205,000 9,231,304 5.00%, 11/21/08 7,885,000 7,943,875 5.48%, 1/8/09 5,000,000 5,056,312 5.25%, 1/16/09 5,895,000 5,975,251 2.69%, 1/28/09 ** 9,587,000 9,458,295 5.75%, 2/13/09 5,000,000 5,082,139 2.70%, 2/20/09 6,350,000 6,350,000 2.90%, 2/27/09 10,000,000 10,000,000 2.90%, 3/5/09 10,000,000 10,000,000 2.38%, 3/10/09 7,050,000 7,055,344 5.25%, 3/13/09 10,840,000 11,035,798 2.30%, 4/3/09 12,500,000 12,485,865 3.00%, 4/15/09 5,020,000 5,040,093 2.52%, 4/21/09 10,000,000 10,000,000 5.38%, 5/15/09 3,115,000 3,181,619 ------------ 473,804,061 ------------ FREDDIE MAC (11.2%) 2.20%, 8/7/08 ** 14,400,000 14,394,720 2.37%, 8/7/08 (a) (c) 20,000,000 19,999,433 2.46%, 8/7/08 (a) (c) 7,875,000 7,875,000 4.88%, 9/12/08 4,000,000 4,006,391 2.39%, 9/15/08 ** 10,000,000 9,970,125 5.00%, 9/16/08 14,095,000 14,133,142 2.45%, 9/22/08 ** 3,794,000 3,780,574 2.34%, 9/23/08 ** 15,000,000 14,948,325 4.30%, 9/24/08 2,000,000 2,004,573 2.18%, 10/14/08 ** 3,272,000 3,257,351 5.13%, 10/15/08 3,420,000 3,440,171 4.75%, 10/17/08 10,466,000 10,521,897 4.63%, 12/19/08 3,333,000 3,360,811 5.00%, 1/16/09 25,000,000 25,286,864 3.38%, 4/15/09 2,000,000 2,015,321 2.55%, 4/21/09 5,000,000 4,999,622 ------------ 143,994,320 ------------ OVERSEAS PRIVATE INVESTMENT CORP. (7.0%) 2.45%, 8/6/08 (a) (c) 18,824,000 18,824,000 2.45%, 8/6/08 (a) (c) 28,900,000 28,900,000 Continued 16 INSTITUTIONAL GOVERNMENT MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED OVERSEAS PRIVATE INVESTMENT CORP., CONTINUED 2.45%, 8/6/08 (a) (c) $ 42,148,000 $ 42,148,000 -------------- 89,872,000 -------------- TOTAL U.S. GOVERNMENT AGENCIES 953,897,470 -------------- SHARES - ----------------------------------------------------------------------------- MONEY MARKETS (4.0%) AIM STIT Government & Agency Portfolio (b) 1,120,948 1,120,948 Goldman Sachs Financial Square Funds - Government Fund (b) 50,543,007 50,543,007 -------------- 51,663,955 -------------- TOTAL MONEY MARKETS 51,663,955 -------------- PRINCIPAL AMOUNT - ----------------------------------------------------------------------------- REPURCHASE AGREEMENTS (17.1%) Bank of America Securities, LLC, 2.13%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $16,500,976, Collateralized by Freddie Mac Discount Note, 0.00%, 11/25/08, value $16,830,846) $ 16,500,000 16,500,000 Deutsche Bank, 2.18%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $140,006,478, Collateralized by various U.S. Government Agency Securities, 3.25%-5.13%, 8/8/08-7/7/15, value $142,801,915) 140,000,000 140,000,000 UBS Investment Bank, 2.15%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $64,794,792, Collateralized by various U.S. Government Agency Securities, 0.00%, 11/17/08-4/27/09, value $66,090,689) 64,794,000 64,794,000 -------------- 221,294,000 -------------- TOTAL REPURCHASE AGREEMENTS 221,294,000 -------------- TOTAL INVESTMENTS (COST $1,286,842,980)+ - 99.7% 1,286,842,980 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 3,727,018 -------------- NET ASSETS - 100.0% $1,290,569,998 ============== 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 July 31, 2008. (b) Investment is in Institutional Shares of underlying fund/portfolio. (c) Maturity date is next rate reset date. The following abbreviation is used in the Schedule of Investments: CMBS - Commercial Mortgage-Backed Security See notes to schedules of investments and notes to financial statements. 17 U.S. TREASURY MONEY MARKET SCHEDULE OF INVESTMENTS JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- TREASURY BILLS (11.5%) 1.20%, 8/21/08 ** $ 25,000,000 $ 24,983,333 1.30%, 9/4/08 ** 25,000,000 24,969,400 1.53%, 9/18/08 ** 25,000,000 24,949,000 1.63%, 10/16/08 ** 15,000,000 14,948,542 1.69%, 10/23/08 ** 15,000,000 14,941,554 2.00%, 11/6/08 ** 35,000,000 34,823,312 2.16%, 11/13/08 ** 30,000,000 29,819,300 2.19%, 12/18/08 ** 15,000,000 14,872,873 1.94%, 1/8/09 ** 15,000,000 14,870,700 1.93%, 1/29/09 ** 15,000,000 14,854,483 ------------ TOTAL TREASURY BILLS 214,032,497 ------------ TREASURY NOTES (12.7%) 4.13%, 8/15/08 20,000,000 19,999,984 4.63%, 9/30/08 20,000,000 20,041,667 3.13%, 10/15/08 25,000,000 25,094,866 4.88%, 10/31/08 20,000,000 20,068,003 3.38%, 12/15/08 25,000,000 25,187,212 4.75%, 12/31/08 40,000,000 40,562,001 4.50%, 3/31/09 25,000,000 25,375,855 3.13%, 4/15/09 30,000,000 30,208,835 3.88%, 5/15/09 30,000,000 30,436,659 ------------ TOTAL TREASURY NOTES 236,975,082 ------------ SHARES - ----------------------------------------------------------------------------- MONEY MARKETS (0.1%) AIM STIT Treasury Portfolio (a) 372,379 372,379 Goldman Sachs Financial Square Funds - Treasury Obligations Fund (a) 1,749,425 1,749,425 ------------ TOTAL MONEY MARKETS 2,121,804 ------------ PRINCIPAL AMOUNT - ----------------------------------------------------------------------------- REPURCHASE AGREEMENTS (75.7%) Bank of America Securities, LLC, 2.02%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $170,009,539, Collateralized by various U.S. Treasury Securities, 4.50%-4.75%, 12/31/08-7/31/09, value $173,400,094) $170,000,000 170,000,000 Barclays PLC, 2.07%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $425,024,438, Collateralized by various U.S. Treasury Securities, 1.63%-2.00%, 1/15/15-1/15/16, value $433,500,024) 425,000,000 425,000,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- REPURCHASE AGREEMENTS, CONTINUED Deutsche Bank, 2.07%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $400,023,000, Collateralized by U.S. Treasury Security, 2.00%, 1/15/26, value $408,000,046) $400,000,000 $400,000,000 UBS Investment Bank, 2.06%, dated 7/31/08, due 8/1/08, (Proceeds at maturity, $414,543,897, Collateralized by various U.S. Treasury Securities, 1.75%-3.63%, 1/15/25-4/15/32, value $422,834,769) 414,542,000 414,542,000 -------------- TOTAL REPURCHASE AGREEMENTS 1,409,542,000 -------------- TOTAL INVESTMENTS (COST $1,862,671,383)+ - 100.0% 1,862,671,383 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.0)% (116,160) -------------- NET ASSETS - 100.0% $1,862,555,223 ============== NOTES TO SCHEDULE OF INVESTMENTS ** Rate represents the effective yield at purchase. + Also represents cost for federal income tax purposes. (a) Investment is in Institutional Shares of underlying fund/portfolio. See notes to schedules of investments and notes to financial statements. 18 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL BONDS (5.5%) MICHIGAN (5.5%) Farmington Hills Economic Development Corp., Marketing Displays Project, AMT, 2.87%, 9/1/08, (LOC: Comerica Bank) (a) (d) $ 50,000 $ 50,000 Grand Haven Michigan Public Imps., GO, FSA, 3.00%, 4/1/09 150,000 150,734 Grand Rapids Michigan Water Supply, 1.80%, 1/1/09 1,000,000 1,000,000 Grand Valley State University, Series A, FSA, 3.00%, 12/1/08 570,000 571,206 Hudsonville Building Authority, GO, 3.00%, 10/1/08 150,000 150,170 Municipal Bond Authority, Clean Water Revolving Fund, 5.00%, 10/1/08, (LOC: Michigan Muni Bond Authority) 360,000 360,876 Municipal Bond Authority, Series B-2, 4.50%, 8/20/08, (LOC: Scotiabank) 3,000,000 3,001,230 Novi Street and Highway, GO, FSA, 5.00%, 10/1/08 2,320,000 2,328,871 State Housing Development Authority, Parkway Meadows Project, FSA, 3.50%, 10/15/08 930,000 931,614 State Housing Development Authority, Rental Housing, Series D, AMT, 3.63%, 10/1/08 530,000 530,000 State of Michigan, Series A, 4.00%, 9/30/08, (LOC: Depfa Bank PLC) 1,000,000 1,001,712 Traverse City Area Public Schools, GO, 3.00%, 5/1/09 1,600,000 1,611,788 Wayne State University, FSA, 5.00%, 11/15/08 2,000,000 2,015,794 ------------ TOTAL MUNICIPAL BONDS 13,703,995 ------------ COMMERCIAL PAPER (2.1%) Michigan State Building Authority, 1.70%, 8/7/08, ((LOC: Bank of New York (60%), (State Street Bank Corp. (40%)) 5,155,000 5,155,000 ------------ TOTAL COMMERCIAL PAPER 5,155,000 ------------ MUNICIPAL DEMAND NOTES (85.9%) ILLINOIS (1.6%) Chicago Industrial Development Revenue, John Hofuelster and Son, Inc. Project, AMT, 2.52%, 8/7/08, (LOC: Bank of Montreal) (a) (d) 3,945,000 3,945,000 ------------ MICHIGAN (74.6%) Detroit Economic Development Corp., Waterfront Reclamation, Series A, 2.20%, 8/7/08, (LOC: Deutshe Bank AG) (a) (d) 500,000 500,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED East Grand Rapids Public School District, GO, FSA, Q-SBLF, 5.75%, 5/1/21, (Prerefunded 5/1/09 @ 100) $ 3,220,000 $ 3,336,933 Eastern Michigan University, 2.20%, 8/7/08, (LOC: Dexia Banque SA) (a) (d) 5,000,000 5,000,000 Farmington Hills Economic Development Corp., Center For Humanistic Studies, 2.40%, 8/7/08, (LOC: Comerica Bank) (a) (d) 470,000 470,000 Higher Education Facilities Authority, Adrian College, 2.37%, 8/7/08, (LOC: Comerica Bank) (a) (d) 565,000 565,000 Iron County Economic Development Corp., Pine River Hardwoods LLC, 2.55%, 8/7/08, (LOC: Marshall & Isley Bank) (a) (d) 8,000,000 8,000,000 Kent Hospital Finance Authority, Spectrum Health, Series B-1, 2.15%, 8/6/08, (LOC: RBS Citizens NA) (a) (d) 1,670,000 1,670,000 Livonia Economic Development Corp., Madonna University Project, 2.39%, 8/1/08, (LOC: RBS Citizens NA) (a) (d) 4,000,000 4,000,000 Macomb County Hospital Finance Authority, Mount Clemens General Hospital, Series A-1, 2.10%, 8/1/08, (LOC: Comerica Bank) (a) (d) 1,175,000 1,175,000 Manistee Area Public Schools, GO, FGIC, Q-SBLF, 5.75%, 5/1/19, (Prerefunded 5/1/09 @ 100) 500,000 517,175 Marquette City Hospital Finance Authority, Marquette General Hospital, Series A, 2.33%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 780,000 780,000 Marquette County Economic Development Corp., Pioneer Laboratories, Series A, AMT, 2.60%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 450,000 450,000 Michigan Strategic Fund, The Detroit Edison Co., Series ET, 2.20%, 8/6/08, (LOC: Scotiabank) (a) (d) 4,000,000 4,000,000 Oakland County Economic Development Corp., Cadillac Iron, Inc. Project, AMT, 2.50%, 8/7/08, (LOC: Comerica Bank) (a) (d) 600,000 600,000 Oakland County Economic Development Corp., Graph-Tech, Inc. Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 1,090,000 1,090,000 Oakland County Economic Development Corp., IBC North America, Inc. Project, AMT, 2.50%, 8/7/08, (LOC: Comerica Bank) (a) (b) (d) 895,000 895,000 Continued 19 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Oakland County Economic Development Corp., Moody Family, Ltd. Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) $ 2,000,000 $ 2,000,000 Oakland County Economic Development Corp., Openings Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 2,755,000 2,755,000 Saline Economic Development Corp., Brecon Village Project, 2.20%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 2,900,000 2,900,000 Southfield Economic Development Corp., Lawrence Technological University Project, 2.20%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 3,015,000 3,015,000 State Building Authority, Multi-Modal Facilities Program IIA, 2.17%, 8/7/08, (LOC: Depfa Bank PLC) (a) (d) 4,890,000 4,890,000 State Building Authority, Multi-Modal Facilities Program IIB, 2.17%, 8/7/08, (LOC: Depfa Bank PLC) (a) (d) 4,295,000 4,295,000 State Hospital Finance Authority, Balmoral, 3.90%, 9/1/08, (LOC: Comerica Bank), (Mandatory Put 9/1/08 @ 100) (a) (b) (d) 415,000 415,000 State Hospital Finance Authority, Crittenton Hospital, Series A, 2.30%, 8/1/08, (LOC: Comerica Bank) (a) (d) 2,000,000 2,000,000 State Hospital Finance Authority, Crittenton Hospital, Series B, 2.30%, 8/1/08, (LOC: Comerica Bank) (a) (d) 3,105,000 3,105,000 State Hospital Finance Authority, Henry Ford Health System, Series C, 2.16%, 8/6/08, (LOC: Royal Bank of Scotland) (a) (d) 6,000,000 6,000,000 State Housing Development Authority, Hunt Club Apartments, AMT, 2.34%, 8/7/08, (LOC: FNMA) (a) (d) 475,000 475,000 State Housing Development Authority, Jewish Apartments and Services Nonprofit Housing, 2.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 5,000,000 5,000,000 State Housing Development Authority, JFA Nonprofit Housing Corp. Project, 3.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 1,000,000 1,000,000 State Housing Development Authority, Multi-Family, Series A, AMT, 2.40%, 8/7/08, (LOC: FHLB) (a) (d) 6,810,000 6,810,000 Strategic Fund, Agape Plastics, Inc. Project, AMT, 3.45%, 8/6/08, (LOC: U.S. Bancorp) (a) (d) 2,200,000 2,200,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, APS Kundinger Project, AMT, 2.50%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) $ 1,000,000 $ 1,000,000 Strategic Fund, Artex Label & Graphics, AMT, 2.34%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,165,000 1,165,000 Strategic Fund, Aspen Realty LLC Project, AMT, 4.20%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 100,000 100,000 Strategic Fund, Automatic Spring Products Project, AMT, 2.60%, 8/6/08, (LOC: Bank of America) (a) (d) 350,000 350,000 Strategic Fund, Bank Real Estate LLC Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 1,990,000 1,990,000 Strategic Fund, Banks Hardwoods, Inc. Project, AMT, 2.41%, 8/7/08, (LOC: KeyBank NA) (a) (b) (d) 477,000 477,000 Strategic Fund, Baruch SLS, Inc. Project, 2.19%, 8/6/08, (LOC: Wachovia Corp.) (a) (d) 420,000 420,000 Strategic Fund, Biewer of Lansing LLC Project, AMT, 2.41%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 225,000 225,000 Strategic Fund, Blair Equipment Co. Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 700,000 700,000 Strategic Fund, Bowers Manufacturing Co. Project, AMT, 4.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 300,000 300,000 Strategic Fund, Cayman Chemical Co. Project, AMT, 2.46%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 760,000 760,000 Strategic Fund, Consumers Energy Co. Project, AMT, 2.13%, 8/6/08, (LOC: Wells Fargo & Co.) (a) (d) 4,000,000 4,000,000 Strategic Fund, Continental Carbonic Products, AMT, 2.35%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 6,720,000 6,720,000 Strategic Fund, Creative Foam Corp. Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 2,000,000 2,000,000 Strategic Fund, Delta Containers, Inc. Project, AMT, 3.43%, 8/7/08, (LOC: Comerica Bank) (a) (d) 1,200,000 1,200,000 Strategic Fund, Diagnostic Real Estate LLC, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 500,000 500,000 Strategic Fund, Eclipse Mold, Inc. Project, AMT, 4.20%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 200,000 200,000 Continued 20 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Emerson School Project, 2.29%, 8/7/08, (LOC: KeyBank NA) (a) (b) (d) $ 2,415,000 $ 2,415,000 Strategic Fund, Father Gabriel High School Project, 2.20%, 8/7/08, (LOC: Allied Irish Bank PLC) (a) (d) 4,700,000 4,700,000 Strategic Fund, Flyer Fund Leasing LLC Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 1,065,000 1,065,000 Strategic Fund, Frank Street LLC Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 1,750,000 1,750,000 Strategic Fund, Frederick Wolfgang Industries Project, AMT, 2.84%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 765,000 765,000 Strategic Fund, Gebara Management Co. LLC Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 300,000 300,000 Strategic Fund, Glastender, Inc. Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 215,000 215,000 Strategic Fund, Great Lake Metal Stamping, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 800,000 800,000 Strategic Fund, Harbor Industries, Inc. Project, AMT, 2.60%, 8/6/08, (LOC: Bank of America) (a) (d) 400,000 400,000 Strategic Fund, J. G. Kern Enterprises Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 3,950,000 3,950,000 Strategic Fund, JC Gibbons Manufacturing, Inc. Project, AMT, 2.50%, 8/7/08, (LOC: Comerica Bank) (a) (d) 720,000 720,000 Strategic Fund, Jet Enterprises LLC Project, 2.40%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 300,000 300,000 Strategic Fund, John H. Dekker and Sons Project, AMT, 2.84%, 8/7/08, (LOC: Bank of America) (a) (d) 290,000 290,000 Strategic Fund, Joy Properties LLC Project, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 480,000 480,000 Strategic Fund, Landscape Forms, Inc. Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 800,000 800,000 Strategic Fund, Lansing Saint Vincent Home Project, 2.20%, 8/7/08, (LOC: Comerica Bank) (a) (d) 2,555,000 2,555,000 Strategic Fund, LaPeer Industries, Inc. Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 2,965,000 2,965,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Louisiana-Pacific Corp., 2.19%, 8/7/08, (LOC: Wachovia Corp.) (a) (b) (d) $ 4,470,000 $ 4,470,000 Strategic Fund, MacArthur Corp. Project, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,700,000 1,700,000 Strategic Fund, Merrill Group Project, AMT, 2.52%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 1,000,000 1,000,000 Strategic Fund, Middleville Tool and Die Project, AMT, 3.43%, 8/6/08, (LOC: U.S. Bancorp) (a) (b) (d) 1,500,000 1,500,000 Strategic Fund, Mold Masters Co. Project, AMT, 4.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,100,000 1,100,000 Strategic Fund, MOT LLC Project, 2.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 960,000 960,000 Strategic Fund, Nicholas Plastics Project, AMT, 2.34%, 9/2/08, (LOC: U.S. Bancorp), 9/2/08 @ 100) (a) (d) 1,625,000 1,625,000 Strategic Fund, Non-Ferrous Cast Alloys Project, AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 235,000 235,000 Strategic Fund, Oak Project, AMT, 2.50%, 8/7/08, (LOC: U.S. Bancorp) (a) (b) (d) 145,000 145,000 Strategic Fund, Patten Monument Project, AMT, 2.84%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 475,000 475,000 Strategic Fund, Peachwood Center Associates, 2.26%, 8/6/08, (LOC: Comerica Bank) (a) (d) 2,115,000 2,115,000 Strategic Fund, Phipps Emmett Associates LLC Project, Series A, AMT, 2.60%, 8/6/08, (LOC: Bank of America) (a) (d) 2,000,000 2,000,000 Strategic Fund, Premier Property Holdings, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 2,490,000 2,490,000 Strategic Fund, Production Engineering Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 1,000,000 1,000,000 Strategic Fund, R.A. Rink LLC Project, AMT, 3.45%, 8/6/08, (LOC: Bank of America) (a) (b) (d) 840,000 840,000 Strategic Fund, R.L. Adams Plastics, Inc. Project, AMT, 2.50%, 8/7/08, (LOC: Comerica Bank) (a) (b) (d) 1,130,000 1,130,000 Strategic Fund, RL Enterprises LLC Project, AMT, 4.30%, 8/7/08, (LOC: Comerica Bank) (a) (b) (d) 200,000 200,000 Continued 21 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Solid Waste Disposal, Grayling Generating Project, AMT, 2.13%, 8/6/08, (LOC: Barclays Bank PLC) (a) (d) $ 2,414,000 $ 2,414,000 Strategic Fund, Stegner East Investments LLC Project, AMT, 2.50%, 8/7/08, (LOC: Comerica Bank) (a) (b) (d) 3,185,000 3,185,000 Strategic Fund, Trenton Forging Co. Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 780,000 780,000 Strategic Fund, Ultra Tech Printing Co., AMT, 2.84%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 930,000 930,000 Strategic Fund, Universal Forest Production Project, 2.34%, 8/7/08, 2,800,000 2,800,000 (LOC: JP Morgan, Inc.) (a) (d) Strategic Fund, Waltec American Forgings, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 1,115,000 1,115,000 Strategic Fund, Warren Screw Products, Inc. Project, AMT, 4.20%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 400,000 400,000 Strategic Fund, Whitehall Industries, Inc., AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 900,000 900,000 Strategic Fund, Whitehall Industries, Inc. Project, AMT, 2.70%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 4,800,000 4,800,000 Strategic Fund, YMCA of Metro Detroit Project, 2.40%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,000,000 1,000,000 University of Michigan Hospital, Series A, 2.25%, 8/1/08, (LOC: University of Michigan) (a) (d) 5,200,000 5,200,000 University of Michigan Hospital, Series A-2, 2.25%, 8/1/08, (LOC: University of Michigan) (a) (d) 1,500,000 1,500,000 Wayne Charter County Airport Revenue, Series B, MBIA, 5.00%, 12/1/28, (Prerefunded 12/1/08 @ 101) 1,000,000 1,027,410 Wayne County Airport Authority Revenue, Series C1, AMT, 2.25%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 9,500,000 9,500,000 ------------ 185,022,518 ------------ MINNESOTA (0.6%) St Paul Housing and Redevelopment Authority, Kendrick Apartments Project, AMT, 2.50%, 8/6/08, (LOC: U.S. Bancorp) (a) (d) 1,595,000 1,595,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED OHIO (2.0%) Air Quality Development Authority, Pollution Control, Series C, 2.30%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) $ 5,000,000 $ 5,000,000 ------------ PUERTO RICO (4.5%) Industrial Medical and Environmental Pollution Control Facilities Financing Authority, 2.25%, 3/1/09, (LOC: Abbott) (a) (b) (d) 5,195,000 5,195,000 Puerto Rico Highway & Transportation Authority, Series A, 2.10%, 8/6/08, (LOC: ScotiaBank) (a) (d) 6,000,000 6,000,000 ------------ 11,195,000 ------------ TEXAS (2.0%) Lower Neches Valley Authority Industrial Development Corp., Series B-2, AMT, 2.05%, 8/1/08, (LOC: Standalone) (a) (d) 5,000,000 5,000,000 ------------ WASHINGTON (0.6%) Economic Development Finance Authority, Hillstrom Ventures LLC, AMT, 2.32%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,400,000 1,400,000 ------------ TOTAL MUNICIPAL DEMAND NOTES 213,157,518 ------------ SHARES - ----------------------------------------------------------------------------- MONEY MARKETS (7.0%) AIM TFIT Tax-Free Cash Reserve Portfolio (c) 113,289 113,289 Dreyfus Tax Exempt Cash Management (c) 35,545 35,545 Goldman Sachs Financial Square Funds - Tax-Free Money Market Fund (c) 17,113 17,114 Merrill Lynch Funds For Institutions Series - Institutional Tax-Exempt Fund (c) 17,165,967 17,165,967 ------------ TOTAL MONEY MARKETS 17,331,915 ------------ TOTAL INVESTMENTS (COST $249,348,428)+ - 100.5% 249,348,428 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5%) (1,212,276) ------------ NET ASSETS - 100.0% $248,136,152 ============ Continued 22 MICHIGAN MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS + Also represents cost for federal income tax purposes. (a) Variable rate security. Rate presented represents rate in effect at July 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: AMT - Alternative Minimum Tax Paper FGIC - Financial Guaranty Insurance Co. FHLB - Federal Home Loan Bank FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GO - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance Q-SBLF - Qualified School Bond Loan Fund Continued INVESTMENT CONCENTRATION AS A PERCENTAGE OF NET ASSETS, BY INDUSTRY: Airport 0.4% Cash & Cash Equivalents 7.0% Development 7.0% Education 3.7% Facilities 4.2% General 5.5% General Obligation 1.7% Higher Education 5.4% Housing 0.8% Industrial 32.5% Medical 9.2% Multifamily Housing 5.8% Pollution 4.1% Regional Authority 2.1% Retirement/Aged Care 1.2% Revenue Bonds 6.1% Transportation 3.4% Utilities 0.4% See notes to schedules of investments and notes to financial statements. 23 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL BONDS (5.3%) COLORADO (0.2%) Denver City and County Airport, Series D, AMT, FSA, 5.00%, 11/15/08 $ 1,020,000 $ 1,027,227 ------------ DISTRICT OF COLUMBIA (1.3%) Metropolitan Washington Airports Authority, Series C, AMT, FSA, 5.00%, 10/1/08 6,000,000 6,027,186 ------------ ILLINOIS (0.1%) Du Page County Water Revenue, Series A, 3.00%, 1/1/09 200,000 200,818 East Chicago Multi School Building Corp., 3.50%, 1/15/09 245,000 245,981 ------------ 446,799 ------------ INDIANA (1.6%) Brownsburg 1999 School Building Corp., FSA, 3.25%, 1/15/09 1,140,000 1,146,903 Fort Wayne-South Side School Building Corp., FSA, 3.25%, 1/15/09 1,000,000 1,006,739 Lake County Building Corp., MBIA, 4.75%, 8/1/08 600,000 600,000 MSD Warren Township Vision 2005 School Building Corp., FSA, 3.25%, 1/10/09 1,425,000 1,431,515 South Bend Community School Corp., FSA, 3.00%, 1/5/09 535,000 536,575 West Lafayette Junior-Senior High School Building Corp., FSA, 3.25%, 1/10/09 920,000 926,215 Western Boone Multi-School Building Corp., GO, FSA, 3.50%, 1/10/09 685,000 687,828 Whitley County Middle School Building Corp., FSA, 3.25%, 1/15/09 885,000 889,152 ------------ 7,224,927 ------------ MICHIGAN (0.7%) Municipal Bond Authority, Series B-2, 4.50%, 8/20/08, (LOC: Scotiabank) 2,000,000 2,000,820 State Hospital Finance Authority, Edward W. Sparrow Hospital, 5.25%, 11/15/08 1,125,000 1,131,130 ------------ 3,131,950 ------------ TEXAS (1.0%) Dallas-Fort Worth International Airport Facilities Improvement Corp., Series A, AMT, FGIC, 5.50%, 11/1/08 3,560,000 3,576,877 Greater Texoma Utility Authority, City of Sherman Project, FSA, 4.00%, 10/1/08 375,000 375,303 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED TEXAS, CONTINUED Round Rock Independent School District, GO, PSF, 5.50%, 8/1/08 $ 500,000 $ 500,000 ------------ 4,452,180 ------------ WISCONSIN (0.4%) Chippewa Valley Technical College District, Series A, GO, 3.00%, 4/1/09 340,000 341,664 Middleton-Cross Plains Area School District, GO, 3.00%, 4/1/09 1,280,000 1,288,375 ------------ 1,630,039 ------------ TOTAL MUNICIPAL BONDS 23,940,308 ------------ COMMERCIAL PAPER (1.3%) Michigan State Building Authority, 1.70%, 8/7/08, ((LOC: Bank of New York (60%), (State Street Bank Corp. (40%)) 5,000,000 5,000,000 Municipal Power Agency, 1.45%, 8/5/08 840,000 840,000 ------------ TOTAL COMMERCIAL PAPER 5,840,000 ------------ MUNICIPAL DEMAND NOTES (90.7%) ALABAMA (2.7%) Birmingham Industrial Development Board, American Cast Iron Pipe Co. Project, AMT, 2.60%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) 3,470,000 3,470,000 Stevenson Industrial Development Board Environmental Improvement Revenue, Mead Corp. Project, AMT, 2.35%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 1,300,000 1,300,000 Stevenson Industrial Development Board Environmental Improvement Revenue, Mead Corp. Project, Series A, AMT, 2.35%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 7,400,000 7,400,000 ------------ 12,170,000 ------------ ARIZONA (0.7%) Pima County Industrial Development Authority, Multi-Family Housing, Eastside Apartments, Series B, AMT, 2.41%, 8/7/08, (LOC: FNMA) (a) (d) 3,000,000 3,000,000 ------------ ARKANSAS (0.4%) City of Sheridan, H.H. Robertson Co. Project, Series A, 2.19%, 8/7/08, (LOC: PNC Bank NA) (a) (b) (d) 2,000,000 2,000,000 ------------ Continued 24 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED CALIFORNIA (2.1%) City of Los Angeles, Multi-Family Housing Project, Asbury Apartments Project, Series A, AMT, 2.46%, 8/1/08, (LOC: Citigroup, Inc.) (a) (d) $ 5,400,000 $ 5,400,000 Concord Multifamily Housing, Maplewood & Golden Glen, Series A, AMT, 2.44%, 8/7/08, (LOC: Citigroup, Inc.) (a) (d) 1,940,000 1,940,000 Los Angeles Community Redevelopment Agency, Wilshire Station Apartments, Series A, AMT, 2.16%, 8/1/08, (LOC: Bank of America) (a) (d) 2,000,000 2,000,000 ------------ 9,340,000 ------------ COLORADO (3.5%) Boulder Housing Authority, Broadway East Apartments Project, AMT, 2.34%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,875,000 1,875,000 Central Platte Valley Metropolitan District, Series B, GO, 3.50%, 12/1/08, (LOC: BNP Paribas), (Mandatory Put 12/1/08 @ 100) (a) (d) 2,000,000 2,000,000 City of Colorado Springs, Catalono Family LLP Project, AMT, 4.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 585,000 585,000 City of Colorado Springs, National Strength and Condition, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 635,000 635,000 Commerce City Northern Infrastructure General Improvement District, GO, 2.24%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,500,000 1,500,000 Durango Community Health and Human Services, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 515,000 515,000 Housing and Finance Authority, High Desert Properties Project, Series A, AMT, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 2,180,000 2,180,000 Housing and Finance Authority, Ready Foods, Inc. Project, Series A, AMT, 2.32%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 2,000,000 2,000,000 Parker Automotive Metropolitan District, GO, 3.50%, 12/1/08, (LOC: U.S. Bancorp), (Mandatory Put 12/1/08 @ 100) (a) (d) 2,000,000 2,000,000 Solaris Metropolitan District No. 1, 2.29%, 8/6/08, (LOC: KeyBank NA) (a) (d) 2,500,000 2,500,000 ------------ 15,790,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED DELAWARE (2.7%) Sussex County Development, Perdue Agrirecycle LLC Project, AMT, 2.35%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (d) $ 5,000,000 $ 5,000,000 Sussex County Development, Perdue Farms, Inc. Project, AMT, 2.40%, 8/7/08, (LOC: Rabobank Nederland NV) (a) (d) 7,000,000 7,000,000 ------------ 12,000,000 ------------ DISTRICT OF COLUMBIA (0.7%) District of Columbia Enterprise, American Immigration Association, AMT, MBIA, 2.27%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 3,000,000 3,000,000 ------------ FLORIDA (6.6%) Capital Trust Agency, Aero Miami FX Project, Air Cargo, AMT, 2.35%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 8,960,000 8,960,000 Collier County Housing Finance Authority, George Washington Carver Apartments Project, AMT, 2.35%, 8/6/08, (LOC: PNC Bank NA) (a) (d) 1,295,000 1,295,000 Hillsborough County Housing Finance Authority Multi-Family Housing, Claymore Crossings Apartments, AMT, 2.30%, 8/6/08, (LOC: Citigroup, Inc.) (a) (d) 1,340,000 1,340,000 Lake County Industrial Development Authority, Locklando Door & Millwork, AMT, 2.29%, 8/7/08, (LOC: RBC Centura Bank) (a) (d) 2,883,000 2,883,000 Ocean Highway and Port Authority, AMT, 2.75%, 8/6/08, (LOC: Wachovia Corp.) (a) (d) 1,615,000 1,615,000 Orange County Industrial Development Authority, Goodwill Industries, Inc. Project, 2.20%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (b) (d) 2,100,000 2,100,000 Palm Beach County, Galaxy Aviation Airport Project, AMT, 2.35%, 8/6/08, (LOC: Citigroup, Inc.) (a) (d) 7,700,000 7,700,000 Palm Beach County Housing Finance Authority, Multi-Family Housing, Azalea Place Apartments Project, Series A, AMT, 2.49%, 8/6/08, (LOC: FHLMC) (a) (b) (d) 3,825,000 3,825,000 ------------ 29,718,000 ------------ Continued 25 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED GEORGIA (3.4%) De Kalb County Housing Authority, Stone Mill Run Apartments Project, Series A, AMT, 2.54%, 8/7/08, (LOC: Regions Bank) (a) (d) $ 7,475,000 $ 7,475,000 Emanuel County Development Authority, Jabo Metal Fabrication Project, AMT, 2.40%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (d) 1,020,000 1,020,000 Kennesaw Development Authority, Multi-Family Housing, Walton Ridenour Apartments, AMT, 2.34%, 8/6/08, (LOC: SunTrust Banks, Inc.) (a) (d) 1,500,000 1,500,000 Smyrna Housing Authority, Walton Grove Project, AMT, 2.24%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 5,200,000 5,200,000 ------------ 15,195,000 ------------ IDAHO (0.5%) Hailey Industrial Development Corp., Rocky Mountain Hardware Project, AMT, 2.44%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (b) (d) 915,000 915,000 Power County, Pollution Control, FMC Corp. Project, 2.50%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) 1,200,000 1,200,000 ------------ 2,115,000 ------------ ILLINOIS (9.8%) Chicago O'Hare International Airport, Compagnie National Air France, AMT, 2.30%, 8/6/08, (LOC: Societe Generale) (a) (d) 3,000,000 3,000,000 City of Chicago Solid Waste Disposal, Groot Industries, Inc. Project, AMT, 3.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 2,000,000 2,000,000 City of Crystal Lake Development, Millennium Electronics Project, AMT, 2.89%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,440,000 1,440,000 City of Peoria, Peoria Academy, Inc. Project, 3.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 4,100,000 4,100,000 City of Savanna, Metform Corp., Series A, AMT, 2.70%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 1,800,000 1,800,000 County of Lake, Northpoint Associates LLC Project, AMT, 2.68%, 8/6/08, (LOC: Northern Trust Corp.) (a) (d) 1,200,000 1,200,000 Finance Authority, Diamond-Star Motors Corp. Project, 2.10%, 8/1/08, (LOC: KeyBank NA) (a) (b) (d) 900,000 900,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED ILLINOIS, CONTINUED Finance Authority, Florence Corp. Project, AMT, 4.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) $ 615,000 $ 615,000 Finance Authority, Northwest Pallet Supply Project, AMT, 2.52%, 8/7/08, (LOC: Bank of Montreal) (a) (d) 3,320,000 3,320,000 Finance Authority, Quality Metal Finishing Co., AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 1,300,000 1,300,000 Finance Authority, Reliable Materials Project, AMT, 2.34%, 8/6/08, (LOC: Marshall & Isley Bank) (a) (d) 3,435,000 3,435,000 Finance Authority, Stromberg Allen & Co. Project, AMT, 2.70%, 8/7/08, (LOC: Bank of America) (a) (d) 7,500,000 7,500,000 Finance Authority, Transparent Container Project, AMT, 2.70%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,500,000 1,500,000 Finance Authority, Waste Management Project, AMT, 2.40%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 1,900,000 1,900,000 Lake Villa Allendale Association Project, 2.27%, 8/7/08, (LOC: Bank of America) (a) (b) (d) 1,225,000 1,225,000 Quad Cities Regional Economic Development Authority, AMT, 2.50%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 1,055,000 1,055,000 Rock Island County Metropolitan Airport Authority, Elliot Aviation, AMT, 2.40%, 8/6/08, (LOC: U.S. Bancorp) (a) (d) 2,155,000 2,155,000 Southwestern Illinois Development Authority, Waste Management, Inc. Project, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,400,000 1,400,000 Village of Arlington Heights Industrial Revenue, 3E Graphics & Printing Project, AMT, 2.60%, 8/7/08, (LOC: Bank of Montreal) (a) (d) 1,155,000 1,155,000 West Chicago Industrial, Bison Gear and Engineering, AMT, 2.40%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 1,484,000 1,484,000 Wheeling Industrial, Circuit Service, Inc. Project, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 1,000,000 1,000,000 Woodridge Development, Home Run Inn Frozen Foods, AMT, 4.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 900,000 900,000 ------------ 44,384,000 ------------ Continued 26 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED INDIANA (3.7%) County of St Joseph Family and Children's Center Project, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) $ 1,900,000 $ 1,900,000 Dekko Foundation Educational Facilities Tax Exempt Income Trust, Series 1, 2.35%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 750,000 750,000 Development Finance Authority, BHAR, Inc. Project, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,100,000 1,100,000 Development Finance Authority, I.V.C. Industrial Coatings, Inc. Project, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 2,335,000 2,335,000 Development Finance Authority, Republic Services, Inc. Project, AMT, 2.27%, 8/1/08, (LOC: SunTrust Banks, Inc.) (a) (d) 2,000,000 2,000,000 Development Finance Authority, South Central Mental Health, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (b) (d) 3,000,000 3,000,000 Gary Chicago International Airport Authority, AMT, 2.79%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 4,100,000 4,100,000 Indianapolis Economic Development Revenue, Roth Co., Inc. Project, AMT 2.55%, 8/6/08, (LOC: Comerica Bank) (a) (d) 1,300,000 1,300,000 ------------ 16,485,000 ------------ IOWA (0.6%) Scott County Industrial, M.A. Ford Manufacturing Co., Inc. Project, AMT, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 2,805,000 2,805,000 ------------ KENTUCKY (2.0%) Economic Development Finance Authority, Republic Services, Inc. Project, AMT, 2.35%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 6,075,000 6,075,000 Economic Development Finance Authority, Republic Services, Inc. Project, AMT, 2.72%, 8/7/08, (LOC: Bank of America) (a) (d) 3,000,000 3,000,000 ------------ 9,075,000 ------------ LOUISIANA (1.1%) Calcasieu Parish Industrial Development Board, AMT, 2.70%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (d) 4,900,000 4,900,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MAINE (0.7%) Finance Authority of Maine, William Arthur, Inc., AMT, 3.45%, 8/6/08, (LOC: JP Morgan, Inc.) (a) (b) (d) $ 3,100,000 $ 3,100,000 ------------ MARYLAND (0.8%) Maryland Industrial Development Financing Authority, Paul Reed Smith Guitar, AMT, 2.45%, 8/1/08, (LOC: PNC Bank NA) (a) (d) 3,500,000 3,500,000 ------------ MICHIGAN (3.7%) Grand Rapids, Clipper Belt Lacer Co., Project, AMT, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 4,000,000 4,000,000 Grand Valley State University, Series B, 2.09%, 8/7/08, (LOC: RBS Citizens NA) (a) (d) 3,500,000 3,500,000 Higher Education Facilities Authority, University of Detroit Mercy, 2.10%, 8/1/08, (LOC: JP Morgan, Inc.) (a) (d) 565,000 565,000 Macomb County Hospital Finance Authority, Mount Clemens General Hospital, Series A-1, 2.10%, 8/1/08, (LOC: Comerica Bank) (a) (d) 535,000 535,000 Michigan Strategic Fund, R.Z. Co. Project, AMT, 2.50%, 8/7/08, (LOC: Comerica Bank) (a) (b) (d) 695,000 695,000 State Hospital Finance Authority, Henry Ford Health System, Series C, 2.16%, 8/6/08, (LOC: Royal Bank of Scotland) (a) (d) 6,550,000 6,550,000 Strategic Fund, Heartland Goodwill Project, 2.20%, 8/7/08, (LOC: Bank of America) (a) (d) 900,000 900,000 ------------ 16,745,000 ------------ MINNESOTA (2.3%) City of Blue Earth Development, Nortech Systems, Inc. Project, AMT, 2.44%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 1,180,000 1,180,000 City of Minneapolis, Minnehaha Academy Project, 2.32%, 8/1/08, (LOC: U.S. Bancorp) (a) (d) 3,386,000 3,386,000 Lauderdale, Children's Home Society Project, 2.32%, 8/1/08, (LOC: U.S. Bancorp) (a) (d) 100,000 100,000 Little Canada, Wellington III Project, AMT, 2.50%, 8/7/08, (LOC: U.S. Bancorp) (a) (b) (d) 1,010,000 1,010,000 Continued 27 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED MINNESOTA, CONTINUED Roseville Health Care Facilities, Presbyterian Homes Project, 2.25%, 8/1/08, (LOC: U.S. Bancorp) (a) (d) $ 2,525,000 $ 2,525,000 St Paul Housing and Redevelopment Authority, Kendrick Apartments Project, AMT, 2.50%, 8/6/08, (LOC: U.S. Bancorp) (a) (d) 975,000 975,000 St. Paul Port Authority, AMT, 2.34%,8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 990,000 990,000 ------------ 10,166,000 ------------ MISSOURI (1.6%) Missouri State Development Finance Board, St Louis Air Cargo Services, AMT, 2.30%, 8/7/08, (LOC: American National B&T) (a) (d) 2,000,000 2,000,000 State Health & Educational Facilities Authority, Bethesda Health Group, 2.25%, 8/1/08, (LOC: U.S. Bancorp) (a) (d) 3,000,000 3,000,000 State Health & Educational Facilities Authority, Drury College, 2.25%, 8/1/08, (LOC: Bank of America) (a) (d) 965,000 965,000 State Health & Educational Facilities Authority, Drury University, 2.25%, 8/1/08, (LOC: Bank of America) (a) (d) 1,485,000 1,485,000 ------------ 7,450,000 ------------ MONTANA (0.2%) Cascade County, Montana Milling, Inc. Project, AMT, 2.44%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 1,100,000 1,100,000 ------------ NEBRASKA (0.5%) County of Washington Industrial Development, Cargill Dow Polymers LLC, Series D, AMT, 2.22%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) 2,300,000 2,300,000 ------------ NEVADA (1.5%) Housing Division, Multi-Family Housing, Golden Apartments, AMT, 2.35%, 8/7/08, (LOC: FHLMC) (a) (d) 1,200,000 1,200,000 Housing Division, Multi-Family Housing, Series A, AMT, 2.40%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 3,000,000 3,000,000 Housing Division, Multi-Unit Housing Revenue Project, Series A, AMT, 2.35%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 2,500,000 2,500,000 ------------ 6,700,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED NEW MEXICO (0.7%) Bernalillo County Multifamily Housing Project, AMT, 2.30%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) $ 3,200,000 $ 3,200,000 ------------ NORTH CAROLINA (2.0%) Capital Facilities Finance Agency, Duke Energy Carolinas Project, Series A, AMT, 2.40%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 4,000,000 4,000,000 Capital Facilities Finance Agency, Duke Energy Carolinas Project, Series B, AMT, 2.22%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 4,500,000 4,500,000 Montgomery County Industrial Facilities & Pollution Control Financing Authority, AMT, 2.27%, 8/1/08, (LOC: SunTrust Banks, Inc.) (a) (d) 700,000 700,000 ------------ 9,200,000 ------------ NORTH DAKOTA (0.1%) Hebron Industrial, Dacco, Inc. Project, AMT, 2.45%, 8/7/08, (LOC: U.S. Bancorp) (a) (b) (d) 520,000 520,000 ------------ OHIO (1.8%) Air Quality Development Authority, Pollution Control, Series C, 2.30%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) 4,500,000 4,500,000 Cleveland-Cuyahoga County Port Authority, CBT Project, AMT, 2.84%, 8/7/08, (LOC: Royal Bank of Scotland) (a) (d) 1,700,000 1,700,000 County of Coshocton Hospital Facilities, Echoing Hills Village, Inc. Project, 3.13%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (b) (d) 165,000 165,000 County of Montgomery Health Care, Community Blood Center Project, 3.13%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,370,000 1,370,000 Summit County Industrial, SSP Fittings Corp. Project, 4.13%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 575,000 575,000 ------------ 8,310,000 ------------ OKLAHOMA (0.4%) Oklahoma Industries Authority, Casady School Project, 3.20%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,980,000 1,980,000 ------------ Continued 28 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED OREGON (0.6%) Port of Portland, Portland Bulk Terminal, AMT, 2.40%, 8/7/08, (LOC: Canadian Imperial Bank of Commerce) (a) (d) $ 2,000,000 $ 2,000,000 State of Oregon Economic Development, McFarland Cascade, Series 175, AMT, 2.45%, 8/7/08, (LOC: U.S. Bancorp) (a) (b) (d) 500,000 500,000 ------------ 2,500,000 ------------ PENNSYLVANIA (3.5%) Allegheny County Industrial Development Authority, Sacred Heart High School, 2.23%, 8/7/08, (LOC: PNC Bank NA) (a) (d) 1,140,000 1,140,000 Allegheny County Industrial Development Authority, Sewickley Academy, Series A, 2.24%, 8/7/08, (LOC: PNC Bank NA) (a) (d) 900,000 900,000 Berks County Industrial Development Authority, Manufacturing Facilities, Ram Industries, Inc. Project, AMT, 2.35%, 8/6/08, (LOC: PNC Bank NA) (a) (d) 960,000 960,000 Chester County Industrial Development Authority, 2.15%, 8/1/08, (LOC: Wachovia Corp.) (a) (d) 3,590,000 3,590,000 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) (a) (d) 1,200,000 1,200,000 Higher Educational Facilities Authority, Gwynedd Mercy College, Series P1, RADIAN, 2.15%, 5/1/09, (LOC: Commerce Bank/PA NA), (Mandatory Put 5/1/09 @ 100) (a) (d) 5,000,000 5,000,000 Schuyulkill County, Industrial Development Authority, AMT, 2.25%, 8/1/08, (LOC: Dexia Banque SA) (a) (d) 600,000 600,000 Union County Hospital Authority, Evangelical Community Hospital, RADIAN, 2.23%, 8/7/08, (LOC: Bank of America) (a) (d) 1,150,000 1,150,000 Westmoreland County Industrial Development Authority, Greensburg Thermal, Series A, 2.19%, 8/7/08, (LOC: PNC Bank NA) (a) (d) 1,425,000 1,425,000 ------------ 15,965,000 ------------ Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED RHODE ISLAND (0.1%) Warwick Housing Authority, Trafalgar East Apartments Project, AMT, 2.25%, 8/1/08, (LOC: Bank of America) (a) (b) (d) $ 600,000 $ 600,000 ------------ SOUTH CAROLINA (0.3%) South Carolina Jobs-Economic Development Authority, Accutrex Products Precision, AMT, 2.34%, 8/1/08 , (LOC: PNC Bank NA) (a) (d) 1,290,000 1,290,000 ------------ SOUTH DAKOTA (0.1%) County of Lawrence Solid Waste Disposal, Series A, AMT, 2.22%, 8/1/08, (LOC: JP Morgan, Inc.) (a) (d) 500,000 500,000 ------------ TENNESSEE (4.1%) Covington Industrial Development Board, Charms Co. Project, AMT, 2.72%, 8/6/08, (LOC: Bank of America) (a) (d) 5,000,000 5,000,000 Greeneville Industrial Development Board, Pet, Inc. Project, 2.19%, 8/7/08, (LOC: BNP Paribas) (a) (b) (d) 500,000 500,000 Jackson Industrial Development Board, General Cable Corp. Project, AMT, 2.34%, 8/7/08, (LOC: PNC Bank NA) (a) (d) 8,000,000 8,000,000 Lewisburg Industrial Development Board, Waste Management, Inc. Project, AMT, 2.29%, 8/7/08, (LOC: Wachovia Corp.) (a) (d) 3,000,000 3,000,000 Loudon Industrial Development Board, Continental Carbonic Products, AMT, 3.45%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,875,000 1,875,000 ------------ 18,375,000 ------------ TEXAS (9.4%) Beaumont Independent School District, GO, PSF, 4.00%, 8/15/08, (LOC: BNP Paribas), (Mandatory Put 8/15/08 @ 100) (a) (d) 2,000,000 2,006,273 Brazos Harbor Industrial Development Corp., American Rice, Inc. Project, Series B, AMT, 2.35%, 8/7/08, (LOC: HSBC Holdings PLC) (a) (d) 9,950,000 9,950,000 Brazos River Authority, Series D-2, AMT, 2.38%, 8/6/08, (LOC: Citigroup, Inc.) (a) (d) 1,010,000 1,010,000 Colorado River Municipal Water District, Republic Waste Services, Inc. Project, AMT, 2.43%, 8/7/08, (LOC: Bank of America) (a) (d) 4,000,000 4,000,000 Continued 29 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED TEXAS, CONTINUED Lower Neches Valley Authority Industrial Development Corp., ExxonMobil Project, Series B, AMT, 2.05%, 8/1/08, (LOC: Standalone) (a) (d) $ 12,000,000 $ 12,000,000 Lower Neches Valley Authority Industrial Development Corp., ExxonMobil Project, Series B-4, AMT, 2.05%, 8/1/08, (LOC: Standalone) (a) (d) 7,300,000 7,300,000 Mission Economic Development Corp., Allied Waste No America, Inc. Project, AMT, Series A, 2.40%, 8/7/08, (LOC: Bank of America) (a) (d) 4,200,000 4,200,000 Waco Industrial Development Corp., Patriot Homes of Texas Project, AMT, 2.50%, 8/6/08, (LOC: Wells Fargo & Co.) (a) (d) 1,800,000 1,800,000 ------------ 42,266,273 ------------ UTAH (0.6%) County of Salt Lake, Community Foundation Disabled Project, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 1,515,000 1,515,000 Housing Corp., Multi-Family Housing, Pointe Apartments Project, AMT, 2.32%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,100,000 1,100,000 West Valley City, Johnson Matthey, Inc. Project, 2.10%, 8/1/08, (LOC: HSBC Holdings PLC) (a) (b) (d) 300,000 300,000 ------------ 2,915,000 ------------ VIRGINIA (0.5%) Brunswick County Industrial Development Authority, Aegis Waste Solutions, Inc., AMT, 4.20%, 8/7/08, (LOC: Credit Suisse Group) (a) (d) 1,000,000 1,000,000 Suffolk Redevelopment and Housing Authority, North Beach Apartments, 2.34%, 8/7/08, (LOC: SunTrust Banks, Inc.) (a) (b) (d) 1,200,000 1,200,000 ------------ 2,200,000 ------------ WASHINGTON (4.9%) Economic Development Finance Authority, B & H Dental Laboratory Project, Series B, AMT, 2.32%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,715,000 1,715,000 Economic Development Finance Authority, Novelty Hill Properties LLC, Series C, AMT, 2.12%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 3,210,000 3,210,000 Continued PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED WASHINGTON, CONTINUED Health Care Facilities Authority, Swedish Health Services, 2.28%, 8/6/08, (LOC: Citigroup, Inc.) (a) (b) (d) $ 4,000,000 $ 4,000,000 Kitsap County Industrial Development Corp., Cara Land Co. LLC Project, AMT, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 2,500,000 2,500,000 Pierce County Economic Development Corp., Quality Stamping Project, AMT, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (d) 2,225,000 2,225,000 Seattle Housing Authority, High Point Project, AMT, 2.41%, 8/7/08, (LOC: KeyBank NA) (a) (d) 1,500,000 1,500,000 Seattle Housing Authority, Rainier Vista Project, AMT, 2.12%, 8/7/08, (LOC: KeyBank NA) (a) (d) 100,000 100,000 State Housing Finance Commission, Clark Island Portfolio, AMT, 2.35%, 8/7/08, (LOC: FHLMC) (a) (d) 3,560,000 3,560,000 Washington Economic Development Finance Authority, American Mill Work Project, Series C, AMT, 2.35%, 8/7/08, (LOC: KeyBank NA) (a) (d) 3,355,000 3,355,000 ------------ 22,165,000 ------------ WISCONSIN (5.5%) Baraboo Wisconsin Industrial Development Revenue, Teel Plastics, Inc. Project, AMT, 2.30%, 8/7/08, (LOC: Marshall & Isley Bank) (a) (d) 10,000,000 10,000,000 City of Whitehall, Industrial Development Revenue, AMT, 2.70%, 8/7/08, (LOC: JP Morgan, Inc.) (a) (d) 1,900,000 1,900,000 Farmington Industrial Development Revenue, Swiss Valley Farms Co. Project, AMT, 2.34%, 8/7/08, (LOC: Wells Fargo & Co.) (a) (b) (d) 500,000 500,000 Kiel Industries, Polar Ware Co. Project, AMT, 2.89%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,325,000 1,325,000 Manitowoc Development, Cher-Make Sausage Co. Project, AMT, 2.89%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 2,080,000 2,080,000 Oconomowoc Community Development Authority, AMT, 2.75%, 8/7/08, (LOC: Bank of America) (a) (d) 1,200,000 1,200,000 Onalaska Industrial, Empire Screen Printing Project, AMT, 2.89%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 945,000 945,000 Continued 30 MUNICIPAL MONEY MARKET SCHEDULE OF INVESTMENTS, CONTINUED JULY 31, 2008 - ----------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- MUNICIPAL DEMAND NOTES, CONTINUED WISCONSIN, CONTINUED Village of Ashwaubenon Industrial Development, AMT, 2.55%, 8/7/08, (LOC: Marshall & Isley Bank) (a) (d) $ 5,035,000 $ 5,035,000 West Bend Industrial, Jackson Concrete, Inc. Project, AMT, 2.89%, 8/7/08, (LOC: U.S. Bancorp) (a) (d) 1,750,000 1,750,000 ------------ 24,735,000 ------------ WYOMING (4.3%) County of Sweetwater, Environment, Pacificorp Project, AMT, 2.20%, 8/1/08, (LOC: Barclays Bank PLC) (a) (d) 19,200,000 19,200,000 ------------ TOTAL MUNICIPAL DEMAND NOTES 408,959,273 ------------ SHARES - ----------------------------------------------------------------------------- MONEY MARKETS (2.9%) AIM TFIT Tax-Free Cash Reserve Portfolio (c) 33,976 33,976 Dreyfus Tax Exempt Cash Management (c) 12,994,915 12,994,915 Goldman Sachs Financial Square Funds - Tax-Free Money Market Fund (c) 59,015 59,015 ------------ TOTAL MONEY MARKETS 13,087,906 ------------ TOTAL INVESTMENTS (COST $451,827,487)+ - 100.2% 451,827,487 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (786,772) ------------ NET ASSETS - 100.0% $451,040,715 ============ Continued NOTES TO SCHEDULE OF INVESTMENTS + Also represents cost for federal income tax purposes. (a) Variable rate security. Rate presented represents rate in effect at July 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: AMT - Alternative Minimum Tax Paper FGIC - Financial Guaranty Insurance Co. FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GO - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance PSF - Public School Fund Radian - Radian Guaranty, Inc. INVESTMENT CONCENTRATION AS A PERCENTAGE OF NET ASSETS, BY INDUSTRY: Airport 7.2% Development 8.7% Education 3.9% Facilities 0.6% General 4.6% General Obligation 1.3% Higher Education 2.0% Housing 6.2% Industrial 27.9% Investment Companies 2.9% Medical 3.9% Miscellaneous 0.7% Multifamily Housing 3.2% Pollution 3.5% Regional Authority 1.3% Resource Recovery 11.5% Retirement/Aged Care 0.7% Revenue Bonds 7.8% Transportation 2.2% Utilities 0.1% Water --^ - ---------------- ^ Amount is less than 0.05%. See notes to schedules of investments and notes to financial statements. 31 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2008 - -------------------------------------------------------------------------------- PRIME INSTITUTIONAL Assets: MONEY MARKET MONEY MARKET -------------- -------------- Investments, at amortized cost and value $1,415,301,096 $2,537,263,863 Repurchase agreement, at cost and value 200,387,000 381,166,000 -------------- -------------- Total Investments 1,615,688,096 2,918,429,863 Cash 302 327 Interest Receivable 4,566,558 8,356,719 Receivable for Fund shares sold 111,164 872,242 Prepaid expenses and other assets 19,895 24,085 -------------- -------------- Total Assets 1,620,386,015 2,927,683,236 -------------- -------------- Liabilities: Distributions payable 1,357,411 2,967,575 Payable for investments purchased 186,161 -- Payable for Fund shares redeemed 35,685 66,522 Accrued expenses and other payables: Payable to Advisor and affiliates 614,520 315,743 Distribution and administrative servicing fee 153,082 85,578 Other 302,702 423,586 -------------- -------------- Total Liabilities 2,649,561 3,859,004 -------------- -------------- Net Assets: Paid-in Capital $1,617,856,349 $2,923,889,399 Accumulated net investment income (loss) 87,088 53,070 Accumulated net realized gain (loss) from investment transactions (206,983) (118,237) -------------- -------------- Net Assets $1,617,736,454 $2,923,824,232 ============== ============== Net Assets: Institutional Shares $ 892,765,160 $2,380,397,319 Class A Shares 721,478,497 NA Class B Shares 2,390,071 NA Class C Shares 1,102,726 NA Select Shares NA 110,409,738 Preferred Shares NA 121,489,082 Trust Shares NA 311,528,093 -------------- -------------- Total $1,617,736,454 $2,923,824,232 ============== ============== Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value): Institutional Shares 892,928,286 2,380,464,820 Class A Shares 721,603,345 NA Class B Shares 2,391,707 NA Class C Shares 1,102,779 NA Select Shares NA 110,412,539 Preferred Shares NA 121,485,530 Trust Shares NA 311,529,034 -------------- -------------- Total 1,618,026,117 2,923,891,923 ============== ============== 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 U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL Assets: MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET -------------- -------------- ------------ ------------ Investments, at amortized cost and value $1,065,548,980 $ 453,129,383 $249,348,428 $451,827,487 Repurchase agreement, at cost and value 221,294,000 1,409,542,000 -- -- -------------- -------------- ------------ ------------ Total Investments 1,286,842,980 1,862,671,383 249,348,428 451,827,487 Cash 289 36 -- -- Interest Receivable 5,550,257 2,484,420 756,018 1,137,311 Receivable for Fund shares sold -- 28,542 -- -- Prepaid expenses and other assets 42,003 73,673 3,318 17,218 -------------- -------------- ------------ ------------ Total Assets 1,292,435,529 1,865,258,054 250,107,764 452,982,016 -------------- -------------- ------------ ------------ Liabilities: Distributions payable 1,427,499 2,109,013 209,653 521,923 Payable for investments purchased -- 60,586 1,637,827 1,300,000 Payable for Fund shares redeemed -- 21,577 -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 147,325 194,307 85,958 40,774 Distribution and administrative servicing fee 83,608 95,094 1,530 24,608 Other 207,099 222,254 36,644 53,996 -------------- -------------- ------------ ------------ Total Liabilities 1,865,531 2,702,831 1,971,612 1,941,301 -------------- -------------- ------------ ------------ Net Assets: Paid-in Capital $1,290,544,578 $1,862,603,597 $248,156,254 $451,038,664 Accumulated net investment income (loss) 12,376 10,442 (7,507) 2,056 Accumulated net realized gain (loss) from investment transactions 13,044 (58,816) (12,595) (5) -------------- -------------- ------------ ------------ Net Assets $1,290,569,998 $1,862,555,223 $248,136,152 $451,040,715 ============== ============== ============ ============ Net Assets: Institutional Shares $ 780,909,777 $1,217,027,820 $237,005,359 $311,282,900 Class A Shares NA NA 11,130,793 66,877,002 Class B Shares NA NA NA NA Class C Shares NA NA NA NA Select Shares 43,792,931 20,532,012 NA 26,266,869 Preferred Shares 245,994,733 480,906,544 NA 9,514,946 Trust Shares 219,872,557 144,088,847 NA 37,098,998 -------------- -------------- ------------ ------------ Total $1,290,569,998 $1,862,555,223 $248,136,152 $451,040,715 ============== ============== ============ ============ Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value): Institutional Shares 780,911,580 1,216,938,051 236,975,274 311,275,153 Class A Shares NA NA 11,129,768 66,888,853 Class B Shares NA NA NA NA Class C Shares NA NA NA NA Select Shares 43,792,851 20,527,263 NA 26,266,650 Preferred Shares 245,990,985 480,864,007 NA 9,514,887 Trust Shares 219,870,480 144,081,198 NA 37,098,081 -------------- -------------- ------------ ------------ Total 1,290,565,896 1,862,410,519 248,105,042 451,043,624 ============== ============== ============ ============ 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. See notes to financial statements. 32-33 spread FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2008 - -------------------------------------------------------------------------------- PRIME INSTITUTIONAL Investment Income: MONEY MARKET MONEY MARKET ----------- ------------ Interest income $55,321,095 $103,637,830 Dividend income 2,148,483 4,946,269 Security lending income 511 196 ----------- ------------ Total Income 57,470,089 108,584,295 ----------- ------------ Expenses: Investment advisory fees 5,757,221 10,807,625 Administration fees 2,490,592 4,675,515 Distribution servicing fees - Class A 1,667,308 NA Distribution servicing fees - Class B 18,862 NA Distribution servicing fees - Class C 8,093 NA Distribution servicing fees - Advisor Shares 378 NA Administrative servicing fees - Class C 2,698 NA Administrative servicing fees - Select Shares NA 81,128 Administrative servicing fees - Preferred Shares NA 216,081 Administrative servicing fees - Trust Shares NA 687,012 Accounting Fees 253,451 374,426 Registration and filing fees 83,382 42,332 Transfer and dividend disbursing agent fees 144,311 283,120 Custody fees 74,968 117,048 Trustees' fees and expenses 75,946 156,229 Other expenses 578,372 770,516 ----------- ------------ Total expenses 11,155,582 18,211,032 ----------- ------------ Less: Waiver and/or reimbursement from Advisor and/or affiliates (1,687,362) (11,558,323) Distribution services - Class A Shares waived -- -- ----------- ------------ Net Expenses 9,468,220 6,652,709 ----------- ------------ Net Investment Income 48,001,869 101,931,586 ----------- ------------ Net realized gains (losses) on investments (114,669) (117,541) ----------- ------------ Change in net assets resulting from operations $47,887,200 $101,814,045 =========== ============ INSTITUTIONAL GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL Investment Income: MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET ----------- ----------- ---------- ----------- Interest income $45,950,473 $44,329,662 $6,538,275 $11,036,279 Dividend income 636,140 312,039 86,370 73,857 Security lending income 1,109 79,939 -- -- ----------- ----------- ---------- ----------- Total Income 46,587,722 44,721,640 6,624,645 11,110,136 ----------- ----------- ---------- ----------- Expenses: Investment advisory fees 5,210,479 5,654,311 919,973 1,952,357 Administration fees 2,253,827 2,446,032 397,990 675,681 Distribution servicing fees - Class A NA NA 34,390 128,035 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 24,900 37,814 NA 14,677 Administrative servicing fees - Preferred Shares 403,953 728,433 NA 19,777 Administrative servicing fees - Trust Shares 392,052 287,302 NA 92,082 Accounting Fees 230,475 242,788 62,956 113,502 Registration and filing fees 37,917 30,398 11,424 41,122 Transfer and dividend disbursing agent fees 114,771 146,407 23,299 38,912 Custody fees 65,411 103,751 18,318 28,715 Trustees' fees and expenses 56,300 64,236 9,201 16,460 Other expenses 338,879 248,942 61,907 134,550 ----------- ----------- ---------- ----------- Total expenses 9,128,964 9,990,414 1,539,458 3,255,870 ----------- ----------- ---------- ----------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (5,576,480) (5,972,980) (263,359) (2,181,845) Distribution services - Class A Shares waived -- -- (12,380) -- ----------- ----------- ---------- ----------- Net Expenses 3,552,484 4,017,434 1,263,719 1,074,025 ----------- ----------- ---------- ----------- Net Investment Income 43,035,238 40,704,206 5,360,926 10,036,111 ----------- ----------- ---------- ----------- Net realized gains (losses) on investments 13,340 1,029 (12,595) (5) ----------- ----------- ---------- ----------- Change in net assets resulting from operations $43,048,578 $40,705,235 $5,348,331 $10,036,106 =========== =========== ========== =========== See notes to financial statements. 34-35 spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- PRIME INSTITUTIONAL MONEY MARKET MONEY MARKET ------------------------------ -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Change in Net Assets: Operations: Net investment income $ 48,001,869 $ 54,637,505 $ 101,931,586 $ 93,463,727 Net realized gains (losses) from investment transactions (114,669) -- (117,541) (696) Increase from payment by the Advisor -- 479,232 -- -- -------------- -------------- -------------- -------------- Change in net assets resulting from operations 47,887,200 55,116,737 101,814,045 93,463,031 -------------- -------------- -------------- -------------- Distributions to shareholders from net investment income: Institutional Shares (26,717,961) (28,254,223) (83,234,532) (75,047,003) Class A Shares (21,685,963) (26,216,460) NA NA Class B Shares (45,877) (46,076) NA NA Class C Shares (27,756) (46,150) NA NA Advisor Shares (3,368) (76,527) NA NA Select Shares NA NA (3,522,646) (2,360,883) Preferred Shares NA NA (5,293,072) (5,814,332) Trust Shares NA NA (9,880,880) (10,221,901) -------------- -------------- -------------- -------------- Change in net assets from Fund shareholder distributions (48,480,925) (54,639,436) (101,931,130) (93,444,119) -------------- -------------- -------------- -------------- Change in net assets from fund share transactions 384,210,602 211,185,327 858,112,405 507,577,063 -------------- -------------- -------------- -------------- Change in net assets 383,616,877 211,662,628 857,995,320 507,595,975 Net Assets: Beginning of period 1,234,119,577 1,022,456,949 2,065,828,912 1,558,232,937 -------------- -------------- -------------- -------------- End of period $1,617,736,454 $1,234,119,577 $2,923,824,232 $2,065,828,912 ============== ============== ============== ============== Accumulated Net Investment Income/(Loss) $ 90,403 $ 563,569 $ 53,070 $ 49,243 ============== ============== ============== ============== INSTITUTIONAL GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET ----------------------------- ------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2008 2007 2008 2007 -------------- ------------ -------------- -------------- Change in Net Assets: Operations: Net investment income $ 43,035,238 $ 36,305,780 $ 40,704,206 $ 55,947,595 Net realized gains (losses) from investment transactions 13,340 (294) 1,029 20,067 Increase from payment by the Advisor -- -- -- 665,288 -------------- ------------ -------------- -------------- Change in net assets resulting from operations 43,048,578 36,305,486 40,705,235 56,632,950 -------------- ------------ -------------- -------------- Distributions to shareholders from net investment income: Institutional Shares (28,163,923) (18,791,265) (21,579,960) (21,023,230) 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 (931,736) (728,142) (1,810,814) (3,333,767) Preferred Shares (8,964,667) (11,432,776) (14,936,228) (27,812,865) Trust Shares (4,974,914) (5,350,264) (3,042,493) (3,770,741) -------------- ------------ -------------- -------------- Change in net assets from Fund shareholder distributions (43,035,240) (36,302,447) (41,369,495) (55,940,603) -------------- ------------ -------------- -------------- Change in net assets from fund share transactions 435,693,670 257,928,435 831,633,466 (156,175,780) -------------- ------------ -------------- -------------- Change in net assets 435,707,008 257,931,474 830,969,206 (155,483,433) Net Assets: Beginning of period 854,862,990 596,931,516 1,031,586,017 1,187,069,450 -------------- ------------ -------------- -------------- End of period $1,290,569,998 $854,862,990 $1,862,555,223 $1,031,586,017 ============== ============ ============== ============== Accumulated Net Investment Income/(Loss) $ 12,376 $ 10,899 $ 10,442 $ 673,377 ============== ============ ============== ============== MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET ----------------------------- --------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Change in Net Assets: Operations: Net investment income $ 5,360,926 $ 6,206,487 $ 10,036,111 $ 10,038,543 Net realized gains (losses) from investment transactions (12,595) -- (5) 5,710 Increase from payment by the Advisor -- -- -- 81,314 ------------ ------------ ------------ ------------ Change in net assets resulting from operations 5,348,331 6,206,487 10,036,106 10,125,567 ------------ ------------ ------------ ------------ Distributions to shareholders from net investment income: Institutional Shares (5,047,039) (6,030,330) (7,188,406) (7,505,507) Class A Shares (313,887) (174,960) (1,195,698) (1,007,959) Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA NA (469,485) (346,718) Preferred Shares NA NA (348,654) (63,987) Trust Shares NA NA (915,183) (1,115,489) ------------ ------------ ------------ ------------ Change in net assets from Fund shareholder distributions (5,360,926) (6,205,290) (10,117,426) (10,039,660) ------------ ------------ ------------ ------------ Change in net assets from fund share transactions 37,468,917 19,297,981 138,585,786 31,447,039 ------------ ------------ ------------ ------------ Change in net assets 37,456,322 19,299,178 138,504,466 31,532,946 Net Assets: Beginning of period 210,679,830 191,380,652 312,536,249 281,003,303 ------------ ------------ ------------ ------------ End of period $248,136,152 $210,679,830 $451,040,715 $312,536,249 ============ ============ ============ ============ Accumulated Net Investment Income/(Loss) $ (7,507) $ (7,790) $ 2,056 $ 80,486 ============ ============ ============ ============ See notes to financial statements. 36-37 spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS - -------------------------------------------------------------------------------- PRIME INSTITUTIONAL MONEY MARKET MONEY MARKET -------------------------------- -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2008 2007 2008 2007 -------------- -------------- -------------- ------------ Share Transactions:* Institutional Shares Shares issued 1,815,668,264 2,013,772,249 9,279,562,987 6,970,997,642 Shares issued in connection with acquisition of Government Money Market Fund ~ 114,584,790 -- -- -- Dividends reinvested 4,257,721 5,180,833 43,313,612 34,131,030 Shares redeemed (1,647,434,091) (1,976,757,489) (8,629,779,632) (6,581,343,201) -------------- -------------- -------------- ------------ Total Institutional Shares 287,076,684 42,195,593 693,096,967 423,785,471 -------------- -------------- -------------- ------------ Class A Shares Shares issued 772,343,518 713,016,829 NA NA Shares issued in connection with acquisition of Government Money Market Fund ~ 90,753,659 -- NA NA Shares issued in conversion from Advisor Class 178,339 -- NA NA Dividends reinvested 21,637,624 24,501,078 NA NA Shares redeemed (788,502,287) (567,575,766) NA NA -------------- -------------- -------------- ------------ Total Class A Shares 96,410,853 169,942,141 NA NA -------------- -------------- -------------- ------------ Class B Shares Shares issued 1,647,430 720,114 NA NA Dividends reinvested 18,913 23,782 NA NA Shares redeemed (742,961) (492,579) NA NA -------------- -------------- -------------- ------------ Total Class B Shares 923,382 251,317 NA NA -------------- -------------- -------------- ------------ Class C Shares Shares issued 261,703 1,032,571 NA NA Dividends reinvested 27,058 45,089 NA NA Shares redeemed (251,679) (891,509) NA NA -------------- -------------- -------------- ------------ Total Class C Shares 37,082 186,151 NA NA -------------- -------------- -------------- ------------ Advisor Shares Shares issued 3,046 3,062,582 NA NA Dividends reinvested 2,730 76,629 NA NA Shares redeemed (242,902) (4,529,086) NA NA -------------- -------------- -------------- ------------ Total Advisor Shares (237,126) (1,389,875) NA NA -------------- -------------- -------------- ------------ Select Shares Shares issued NA NA 667,561,897 228,248,494 Dividends reinvested NA NA 2,537,089 1,741,040 Shares redeemed NA NA (619,584,202) (205,670,204) -------------- -------------- -------------- ------------ Total Select Shares NA NA 50,514,784 24,319,330 -------------- -------------- -------------- ------------ Preferred Shares Shares issued NA NA 2,661,633,186 523,728,346 Dividends reinvested NA NA 4,179,027 5,486,199 Shares redeemed NA NA (2,631,945,550) (539,857,256) -------------- -------------- -------------- ------------ Total Preferred Shares NA NA 33,866,663 (10,642,711) -------------- -------------- -------------- ------------ Trust Shares Shares issued NA NA 455,625,287 406,473,254 Dividends reinvested NA NA 1,074,751 975,803 Shares redeemed NA NA (376,068,648) (337,334,084) -------------- -------------- -------------- ------------ Total Trust Shares NA NA 80,631,390 70,114,973 -------------- -------------- -------------- ------------ INSTITUTIONAL GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET ------------------------------- ------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2008 2007 2008 2007 -------------- -------------- -------------- -------------- Share Transactions:* Institutional Shares Shares issued 4,218,113,932 2,062,016,022 3,009,576,882 901,051,485 Shares issued in connection with acquisition of Government Money Market Fund ~ -- -- -- -- Dividends reinvested 8,297,672 3,915,090 3,265,423 2,671,305 Shares redeemed (3,932,555,301) (1,883,204,644) (2,215,814,929) (870,500,782) -------------- -------------- -------------- -------------- Total Institutional Shares 293,856,303 182,726,468 797,027,376 33,222,008 -------------- -------------- -------------- -------------- 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 213,606,505 34,585,100 348,155,051 460,675,581 Dividends reinvested 615,050 94,766 10,580 -- Shares redeemed (184,411,112) (27,034,939) (391,477,414) (458,826,239) -------------- -------------- -------------- -------------- Total Select Shares 29,810,443 7,644,927 (43,311,783) 1,849,342 -------------- -------------- -------------- -------------- Preferred Shares Shares issued 1,172,811,192 1,050,751,241 2,317,188,382 3,869,084,458 Dividends reinvested 5,900,344 6,798,376 1,231,619 4,701,696 Shares redeemed (1,157,858,627) (1,022,670,593) (2,310,106,806) (4,026,406,029) -------------- -------------- -------------- -------------- Total Preferred Shares 20,852,909 34,879,024 8,313,195 (152,619,875) -------------- -------------- -------------- -------------- Trust Shares Shares issued 360,941,316 200,948,581 577,531,488 376,505,381 Dividends reinvested 515,231 674,246 -- -- Shares redeemed (270,265,761) (168,944,811) (507,943,553) (415,132,636) -------------- -------------- -------------- -------------- Total Trust Shares 91,190,786 32,678,016 69,587,935 (38,627,255) -------------- -------------- -------------- -------------- MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET ---------------------------- --------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Share Transactions:* Institutional Shares Shares issued 495,157,784 462,394,174 650,038,940 508,704,474 Shares issued in connection with acquisition of Government Money Market Fund ~ -- -- -- -- Dividends reinvested 1,239,591 1,936,498 466,703 758,884 Shares redeemed (455,351,753) (458,054,973) (569,864,377) (493,819,741) ------------ ------------ ------------ ------------ Total Institutional Shares 41,045,622 6,275,699 80,641,266 15,643,617 ------------ ------------ ------------ ------------ Class A Shares Shares issued 22,749,155 35,069,595 168,182,361 141,051,757 Shares issued in connection with acquisition of Government Money Market Fund ~ -- -- -- -- Shares issued in conversion from Advisor Class -- -- -- -- Dividends reinvested 313,887 174,646 1,179,696 940,275 Shares redeemed (26,641,513) (22,221,959) (140,990,878) (130,512,864) ------------ ------------ ------------ ------------ Total Class A Shares (3,578,471) 13,022,282 28,371,179 11,479,168 ------------ ------------ ------------ ------------ 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 74,713,309 42,757,841 Dividends reinvested NA NA 3,068 5,007 Shares redeemed NA NA (58,644,501) (43,118,790) ------------ ------------ ------------ ------------ Total Select Shares NA NA 16,071,876 (355,942) ------------ ------------ ------------ ------------ Preferred Shares Shares issued NA NA 39,470,111 3,179,635 Dividends reinvested NA NA -- 942 Shares redeemed NA NA (31,353,417) (4,184,161) ------------ ------------ ------------ ------------ Total Preferred Shares NA NA 8,116,694 (1,003,584) ------------ ------------ ------------ ------------ Trust Shares Shares issued NA NA 144,426,897 114,876,538 Dividends reinvested NA NA 83,727 44,712 Shares redeemed NA NA (139,124,474) (109,237,470) ------------ ------------ ------------ ------------ Total Trust Shares NA NA 5,386,150 5,683,780 ------------ ------------ ------------ ------------ - ------------------ * 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. 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 - ------------------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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) - ------------------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET CLASS A SHARES Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 --^ --^ --^ - ------------------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET CLASS B SHARES Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 --^ --^ --^ - ------------------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET CLASS C SHARES Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 --^ --^ --^ - ------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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) - ------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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 Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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 Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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 Year ended 7/31/08 $1.00 3.65% $ 892,765 0.66% 0.54% 3.44% 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% - ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET CLASS A SHARES Year ended 7/31/08 $1.00 3.40% $ 721,478 0.91% 0.79% 3.22% 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% - ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET CLASS B SHARES Year ended 7/31/08 $1.00 2.62% $ 2,390 1.66% 1.54% 2.40% 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% - ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET CLASS C SHARES Year ended 7/31/08 $1.00 2.63% $ 1,103 1.66% 1.54% 2.53% 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% - ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/08 $1.00 3.96% $2,380,397 0.64% 0.21% 3.82% 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% - ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 3.87% $ 110,410 0.73% 0.29% 3.47% 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 Year ended 7/31/08 $1.00 3.80% $ 121,489 0.79% 0.36% 3.66% 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 Year ended 7/31/08 $1.00 3.70% $ 311,528 0.89% 0.46% 3.60% 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 highlights and 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 - ------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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) - ------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 0.04(3) --^ (0.04) 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 Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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) - ------------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $1.00 3.66% $ 780,910 0.64% 0.21% 3.33% 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% - ----------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 3.58% $ 43,793 0.72% 0.29% 2.99% 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%* $ 5,202 0.75%** 0.30%** 0.82%** - ----------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL GOVERNMENT MONEY MARKET PREFERRED SHARES Year ended 7/31/08 $1.00 3.51% $ 245,995 0.79% 0.36% 3.33% 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 Year ended 7/31/08 $1.00 3.41% $ 219,872 0.89% 0.46% 3.17% 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 Year ended 7/31/08 $1.00 3.21% $1,217,028 0.63% 0.21% 2.78% 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% - ----------------------------------------------------------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 3.10% $ 20,532 0.72% 0.29% 3.74% 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 Year ended 7/31/08 $1.00 3.06% $ 480,906 0.79% 0.36% 3.01% Year ended 7/31/07 $1.00 4.99% $ 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 Year ended 7/31/08 $1.00 2.95% $ 144,089 0.88% 0.46% 2.61% 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 highlights and notes to financial statements. 42-43 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 Year ended 7/31/08 $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) - ------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET CLASS A SHARES Year ended 7/31/08 $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 0.02 --^ (0.02) Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 --^ -- --^ - ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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) - ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET CLASS A SHARES Year ended 7/31/08 $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 --^ --^ --^ - ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $1.00 0.03(3) --^ (0.03) 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 Year ended 7/31/08 $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 Year ended 7/31/08 $1.00 2.41% $ 237,005 0.65% 0.54% 2.33% 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% - ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET CLASS A SHARES Year ended 7/31/08 $1.00 2.25% $ 11,131 0.91% 0.70% 2.28% 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% - ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET INSTITUTIONAL SHARES Year ended 7/31/08 $1.00 2.75% $ 311,283 0.77% 0.21% 2.63% 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% - ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET CLASS A SHARES Year ended 7/31/08 $1.00 2.50% $ 66,877 1.02% 0.46% 2.32% 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% - ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET SELECT SHARES Year ended 7/31/08 $1.00 2.67% $ 26,267 0.85% 0.29% 2.54% 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 Year ended 7/31/08 $1.00 2.60% $ 9,515 0.92% 0.36% 2.64% 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 Year ended 7/31/08 $1.00 2.49% $ 37,099 1.02% 0.46% 2.46% 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. (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 was reported as Increase from payment by the advisor in the Statements of Operations. Net Investment Income per share in these Financial Highlights includes the impact of this payment however the amount per share is less than $.005. The Funds distributed the income related to this payment after July 31, 2007. This payment into the Funds had no impact on total return for the year ended July 31, 2007. See notes to financial statements. 44-45 spread FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 2008 - -------------------------------------------------------------------------------- (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-one 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"). 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 Statements of Operations, Statements 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 (the "Closing Date"), 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 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 the Closing 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 $1,268,851,875 Government Money Market Acquired Fund 205,338,449 -------------- Prime Money Market After Acquisition $1,474,190,324 ============== (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 46 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- 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. ("FTAM" or the "Advisor") to be creditworthy pursuant to guidelines and/or standards reviewed or established by the Board of Trustees of the Funds (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. 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. As of July 31, 2008, the Funds did not hold when-issued or delayed delivery securities. Lending Portfolio Securities-- Each Fund (except U.S. Treasury Money Market) 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" or "Lending Agent"), to act as lending agent and to administer its securities lending program. The Funds commenced lending securities on April 16, 2008. U.S. Treasury Money Market inadvertently lent securities through April 29, 2008 resulting in $79,939 of securities lending income, but has not participated in securities lending subsequent to that 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. As of July 31, 2008, no funds had securities on loan. 47 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- 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 compensate for 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 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. Accordingly, at July 31, 2008, reclassifications were recorded as follows: INCREASE INCREASE (DECREASE) DECREASE UNDISTRIBUTED NET UNDISTRIBUTED NET PAID-IN-CAPITAL IN INVESTMENT INCOME REALIZED GAIN (LOSS) EXCESS OF PAR ----------------- -------------------- ------------- Prime Money Market $5,890 $ 3,316 $ (9,206) Institutional Money Market 3,371 -- (3,371) Institutional Government Money Market 1,479 -- (1,479) U.S. Treasury Money Market 2,354 61,932 (64,286) Michigan Municipal Money Market 283 -- (283) Municipal Money Market 2,885 (2,399) (486) Federal Taxes--It is the intention of each Fund 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 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 requires 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 January 31, 2008. 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 July 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. 48 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- 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 the likely impact of FAS 157, as of this report date, Management does not believe the adoption of FAS 157 will have a significant impact to the Funds' financial statements. Additional disclosures may be required however, relating to the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets. In March 2008, FASB issued Statement on Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities ("FAS 161"). FAS 161 may require enhanced disclosures about Funds' derivative and hedging activities. FAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds' financial statement disclosures. (3) RELATED PARTY TRANSACTIONS 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 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, 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 49 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- 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. All waivers not recovered at the end of the period expire on November 28, 2008. 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 LIMITA- FEE INSTITU- RECOVER- FUND FEE WAIVER TION ** WAIVER TIONAL A B C ABLE*** - ----------------------------------------------------------------------------------------------------------------------------- Prime Money Market 0.40% NA C 0.08% 0.54% 0.79% 1.54% 1.54% $1,232,322 Institutional Money Market 0.40% 0.30% C 0.07% 0.21% NA NA NA 8,249,741 Institutional Government Money Market 0.40% 0.30% C 0.045% 0.21% NA NA NA 4,089,130 U.S. Treasury Money Market 0.40% 0.30% C 0.10% 0.21% NA NA NA 4,278,151 Michigan Municipal Money Market 0.40% NA C 0.065% 0.54% 0.70%# NA NA 168,981 Municipal Money Market 0.50% 0.40% C 0.04% 0.21% 0.46% NA NA 1,528,180 * 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 *** 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 July 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 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 50 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- 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 $11,998 for the Trust, 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 $3,843,408 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 annual rates up to those shown below, based on average daily net assets of the respective classes. CLASS ADMINISTRATIVE SERVICES FEE ----- --------------------------- Class C 0.25% Select 0.08% Preferred 0.15% Trust 0.25% Transfer and Dividend Disbursing Agent--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 $370,000 from the Trust 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. 51 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- (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 permit the Funds to borrow cash if necessary to meet temporary or emergency cash needs, including to pay redemption requests that might otherwise require the untimely disposition of securities. Borrowings may not exceed 33 1/3% of a 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%. There were no borrowings against the line of credit during the period the agreement was in place. (5) FEDERAL TAX INFORMATION The tax character of distributions paid during the fiscal years ended July 31, 2008 and 2007 was as follows: JULY 31, 2008 JULY 31, 2007 ---------------------------------------------- --------------------------------------------- TAX TOTAL TAX TOTAL ORDINARY INCOME EXEMPT DISTRIBUTIONS ORDINARY INCOME EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID DISTRIBUTIONS DISTRIBUTIONS PAID ---------------- ------------- ------------- --------------- ------------- ------------- Prime Money Market $ 48,480,925 $ -- $ 48,480,925 $54,639,437 $ -- $54,639,437 Institutional Money Market 101,931,130 -- 101,931,130 93,444,119 -- 93,444,119 Institutional Government Money Market 43,035,240 -- 43,035,240 36,302,447 -- 36,302,447 U.S. Treasury Money Market 41,369,495 -- 41,369,495 55,940,604 -- 55,940,604 Michigan Municipal Money Market -- 5,360,926 5,360,926 -- 6,205,290* 6,205,290 Municipal Money Market -- 10,117,426 10,117,426 -- 10,039,660* 10,039,660 * 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 $499,803 Municipal Money Market 803,007 As of July 31, 2008, the components of accumulated earnings/(deficit) on a tax basis were as follows: TOTAL ACCUMULATED ACCUMULATED UNDISTRIBUTED TAX UNDISTRIBUTED CAPITAL AND EARNINGS/ EXEMPT INCOME ORDINARY INCOME OTHER LOSSES (DEFICIT) --------------- ---------------- ------------ ------------ Prime Money Market $ -- $82,621 $(202,516) $(119,895) Institutional Money Market -- 53,183 (118,350) (65,167) Institutional Government Money Market -- 26,879 (1,459) 25,420 U.S. Treasury Money Market -- 10,442 (58,816) (48,374) Michigan Municipal Money Market (5,549) -- (14,553) (20,102) Municipal Money Market 2,056 -- (5) 2,051 52 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- As of July 31, 2008, the following Funds have net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by Treasury regulations: EXPIRATION YEAR TOTAL --------------------------------------- ----- 2009 2010 2014 2015 ------- ---- ------- ---- Prime Money Market $ -- $-- $92,314 $-- $92,314 Institutional Money Market -- -- 696 -- 696 U.S. Treasury Money Market 58,816 -- -- -- 58,816 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, 2008, the Funds deferred to August 1, 2008 post October capital losses of: CAPITAL LOSSES -------------- Prime Money Market $114,669 Institutional Money Market 117,541 Michigan Municipal Money Market 12,595 Municipal Money Market 5 During the tax year ended July 31, 2008, the Funds utilized capital loss carryforwards in the following amounts: CAPITAL LOSSES -------------- Institutional Government Money Market $ 295 U.S. Treasury Money Market 62,960 (6) CONCENTRATIONS Michigan Municipal Money Market holds a significant portion of its investments in debt obligations issued by 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. (7) MARKET AND CREDIT RISK In the normal course of business the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to credit risk, the Funds may be exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss could exceed the value of the financial assets recorded in the financial statements. Financial assets, which potentially expose the Funds to credit risk, consist principally of cash due from counterparties and investments. The extent of the Funds' exposure to credit and counterparty risks in respect to these financial assets approximates their carrying value as recorded in the Funds' Statements of Assets and Liabilities. 53 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2008 - -------------------------------------------------------------------------------- (8) SUBSEQUENT EVENT Proposed Fund Mergers--At a special meeting of the Board of Trustees on July 30, 2008, the Trustees approved Agreements and Plans of Reorganization (the "Plans"), relating to the proposed reorganizations of certain funds of the Trust with and into certain series of Money Market Obligations Trust (the "Proposed Reorganizations"). Several Funds within these financial statements are parties to proposed reorganizations, whereby the "Acquiring Fund" proposes to acquire the "Acquired Fund" as shown below. Each of the proposed reorganizations is independent and not conditioned on the others. A proxy/prospectus relating to the Proposed Reorganizations was filed with the Securities and Exchange Commission on September 2, 2008, indicating anticipated shareholder meeting and closing dates to be held on or about November 21, 2008. The Plans are subject to approval of the shareholders of the Acquired Funds. ACQUIRING FUND ACQUIRED FUND Federated Michigan Municipal Cash Trust Michigan Municipal Money Market Federated Municipal Obligations Fund Municipal Money Market Market Conditions (Unaudited) Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the net asset value of many mutual funds, including the Fifth Third Funds. Such events occurring subsequent to the date of this report have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business, and/or whose securities are or may be held within the Funds. The potential investment of each Funds' investments in these issuers, and the financial sector in general, as reflected in each Fund's schedule of investments, exposes investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 54 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders of The Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Fifth Third Prime Money Market Fund, Fifth Third Institutional Money Market Fund, Fifth Third Institutional Government Money Market Fund, Fifth Third U.S. Treasury Money Market Fund, Fifth Third Michigan Municipal Money Market Fund and Fifth Third Municipal Money Market Fund (the "Funds") at July 31, 2008, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Kansas City, MO September 26, 2008 55 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT ^ The Trustees and Officers of the Funds, age, the position they hold with the Funds, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the fund complex that the Trustee oversees and any other directorships held by the Trustee are listed in the two tables immediately following. The business address of the persons listed below is 38 Fountain Square Plaza, Cincinnati, Ohio 45202. INDEPENDENT TRUSTEES NUMBER OF PORTFOLIOS POSITION(S) TERM OF IN FUND HELD OFFICE AND COMPLEX OTHER NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS AGE FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE - --------------------------------------------------------------------------------------------------------------------------- Edward Burke Carey Chairman-Board Indefinite, Carey Realty Investments, Inc. 31 Canisius Age: 63 of Trustees January (real estate development and College-Trustee. 1989-Present consulting), President, 1990-Present. David J. Durham Trustee Indefinite, Chairman of Clipper Products, Inc., 31 None Age: 63 June 2001- a wholesale distributor, 2005-Present. Present Chairman of Norris Products Corp., a wholesale distributor, 2005-Present. President and Chief Executive Officer of Clipper Products, Inc., 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, EVP and Managing Director, DHR 31 Trustee for Age: 58 March International (executive recruiter), Hanover College. 2001-Present April 2007-Present. Consultant, Duke National Underground Energy, April 2006-March 2007. Freedom Center, President, Cinergy Foundation, The Cincinnati Zoo, November 2001-March 2006. The Ohio Arts Council, The Cincinnati Parks Foundation, and Playhouse in the Park. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 31 Printing Age: 63 October Present. Business Industries of 2001- Present Management Consultant, April America: Web Offset 2000-February 2002. Assoc., Director; Master Printers of America, Director. David J. Gruber Trustee Indefinite, President, DJG Financial Consulting 31 None Age: 44 December (accounting and finance consultant), 2003-Present June 2007-Present. Resources Global Professionals, Project Professional, December 2004-June 2007. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO, April 2003-December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director, April 1996-March 2003. ^ Additional disclosure can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. 56 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- OFFICERS TERM OF POSITION(S) OFFICE AND HELD LENGTH OF NAME WITH THE TIME PRINCIPAL OCCUPATION(S) AND AGE FUNDS SERVED DURING THE PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------------- E. Keith Wirtz President Indefinite, April President, Fifth Third Asset Management, Age: 48 2007-Present Inc. 2003- Present, Managing Partner, Paladin Investment Associates, LLC, 2000-2003. Matthew A. Ebersbach Vice President Indefinite, March Vice President of Fifth Third Bank Age: 38 2006-Present since 2001. Richard B. Ille Vice President Indefinite, April Managing Director, Products and Marketing, Age: 43 2007-Present Fifth Third Asset Management, Inc., 2001-Present. James A. Mautino Anti-Money Indefinite, Vice President and Chief Compliance Officer, Age: 40 Laundering and February 2007- Fifth Third Asset Management, Inc. August Chief Compliance Present 2005-Present, Director of Risk and Officer Compliance, State Street Bank and Trust Company, October 1995-July 2005. Shannon King Treasurer Indefinite, March Vice President, Fifth Third Asset Age: 36 2008-Present Management, Inc. September 2007-Present, Assistant Vice President and Capital Markets Derivative Manager, Fifth Third Bank, 2005- 2007, Capital Markets Accounting Manager, Fifth Third Bank 2001-2005. Matthew A. Swendiman Secretary Indefinite, April Vice President and Counsel of Fifth Third Age: 35 2007-Present Bank, March 2006 to Present. Attorney, Kirkpatrick & Lockhart Nicholson Graham, LLP, May 2005-March 2006. Counsel, The Phoenix Companies, Inc., July 2002-April 2005. Assistant Vice President and Assistant Counsel, Conseco Capital Management, Inc., December 2000-June 2002. Christopher Roetzer Assistant Treasurer Indefinite, June Vice President, State Street Bank and Trust Age: 45 2007-Present Company (a Massachusetts trust company) from 2004 to Present. Vice President, Assistant Treasurer and Principal Accounting Officer, IDEX Mutual Funds, AEGON/Transamerica Series Fund, Inc.; various AEGON USA affiliates, 1986-2003. Tracy Kaufman Assistant Treasurer Indefinite, June Assistant Vice President, State Street Bank Age: 49 2007-Present and Trust Company (a Massachusetts trust company) from 1986 to Present. Francine S. Hayes Assistant Secretary Indefinite, June Vice President and Counsel, State Street Age: 40 2007-Present Bank and Trust Company (a Massachusetts trust company) from 2004 to Present; and Assistant Vice President and Counsel, State Street Bank and Trust Company, from 2001 to 2004. 57 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- ADDITIONAL TAX INFORMATION The tax-exempt percentage of ordinary income and short-term capital gain distributions paid during fiscal year 2008 was as follows: PERCENTAGE ---------- Michigan Municipal Money Market 100% Municipal Money Market 100% 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 58 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- EXPENSE EXAMPLE As a shareholder of the Fifth Third Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fifth Third Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2008 through July 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 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 - ---------------------------------------------------------------------------------------------------------------------------- Prime Money Market Institutional Shares $1,000.00 $1,012.50 $2.70 0.54% Class A Shares 1,000.00 1,011.20 3.95 0.79% Class B Shares 1,000.00 1,007.50 7.69 1.54% Class C Shares 1,000.00 1,007.50 7.69 1.54% Institutional Money Market Institutional Shares 1,000.00 1,014.30 1.05 0.21% Select Shares 1,000.00 1,013.90 1.45 0.29% Preferred Shares 1,000.00 1,013.60 1.80 0.36% Trust Shares 1,000.00 1,013.10 2.30 0.46% Institutional Government Money Market Institutional Shares 1,000.00 1,012.70 1.05 0.21% Select Shares 1,000.00 1,012.30 1.45 0.29% Preferred Shares 1,000.00 1,011.40 1.80 0.36% Trust Shares 1,000.00 1,022.40 2.31 0.46% U.S. Treasury Money Market Institutional Shares 1,000.00 1,010.30 1.05 0.21% Select Shares 1,000.00 1,009.90 1.45 0.29% Preferred Shares 1,000.00 1,009.60 1.80 0.36% Trust Shares 1,000.00 1,009.10 2.30 0.46% Michigan Municipal Money Market Institutional Shares 1,000.00 1,008.70 2.70 0.54% Class A Shares 1,000.00 1,007.80 3.49 0.70% Municipal Money Market Institutional Shares 1,000.00 1,010.20 1.05 0.21% Class A Shares 1,000.00 1,008.90 2.30 0.46% Select Shares 1,000.00 1,009.80 1.45 0.29% Preferred Shares 1,000.00 1,009.40 1.80 0.36% Trust Shares 1,000.00 1,008.90 2.30 0.46% - -------------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 59 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may however use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/08 7/31/08 2/1/08 - 7/31/08 2/1/08 - 7/31/08 - ---------------------------------------------------------------------------------------------------------------------------- Prime Money Market Institutional Shares $1,000.00 $1,022.18 $2.72 0.54% Class A Shares 1,000.00 1,020.93 3.97 0.79% Class B Shares 1,000.00 1,017.21 7.72 1.54% Class C Shares 1,000.00 1,017.21 7.72 1.54% Institutional Money Market Institutional Shares 1,000.00 1,023.82 1.06 0.21% Select Shares 1,000.00 1,023.42 1.46 0.29% Preferred Shares 1,000.00 1,023.07 1.81 0.36% Trust Shares 1,000.00 1,022.58 2.31 0.46% Institutional Government Money Market Institutional Shares 1,000.00 1,023.82 1.06 0.21% Select Shares 1,000.00 1,023.42 1.46 0.29% Preferred Shares 1,000.00 1,023.07 1.81 0.36% Trust Shares 1,000.00 1,022.58 2.31 0.46% U.S. Treasury Money Market Institutional Shares 1,000.00 1,023.82 1.06 0.21% Select Shares 1,000.00 1,023.42 1.46 0.29% Preferred Shares 1,000.00 1,023.07 1.81 0.36% Trust Shares 1,000.00 1,022.58 2.31 0.46% Michigan Municipal Money Market Institutional Shares 1,000.00 1,022.18 2.72 0.54% Class A Shares 1,000.00 1,021.38 3.52 0.70% Municipal Money Market Institutional Shares 1,000.00 1,023.82 1.06 0.21% Class A Shares 1,000.00 1,022.58 2.31 0.46% Select Shares 1,000.00 1,023.42 1.46 0.29% Preferred Shares 1,000.00 1,023.07 1.81 0.36% Trust Shares 1,000.00 1,022.58 2.31 0.46% - ----------------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 60 This page intentionally left blank. 61 This page intentionally left blank. 62 This page intentionally left blank. 63 This page intentionally left blank. 64 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 - ------------------------------------------------------------------------------------------------------- Advised by FTAM FIFTH THIRD ASSET MANAGEMENT BEYOND THE TRADITIONAL 1-800-282-5706 FTF1359 073109 AR-MMF-08 9/08 ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the "Code of Ethics"). On September 24, 2008, the Code of Ethics was amended to include (i) additional obligations with respect to reporting of certain financial interests or relationships of officers covered by the Code of Ethics, (ii) additional recordkeeping requirements, and (iii) other non-material changes. The Code of Ethics, as amended, is attached hereto as Exhibit 12(a)(1). There have been no waivers granted by the registrant to individuals covered by the Code of Ethics during the period covered by this report on Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Board of Trustees of the registrant has determined that it has one audit committee financial expert serving on the registrant's Audit Committee that possess the attributes identified in Item 3(b) of Form N-CSR. The name of the audit committee financial expert is David J. Gruber and Mr. Gruber is "independent" as that term is defined in Item 3(a)(2) of Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Audit Fees The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services normally provided in connection with statutory and regulatory filings and engagements for the last two fiscal years ended July 31, 2007 and July 31, 2008 were $319,400 and $403,642, respectively. (b) Audit Related Fees The registrant was not billed any fees by the principal accountant for the fiscal year ended July 31, 2007 or July 31, 2008 for assurance and related services that were reasonably related to the performance of the audit of the registrant's financial statements and not otherwise included under paragraph (a) of this Item 4. (c) Tax Fees The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning in the form of preparation of excise filings and income tax returns for the last two fiscal years ended July 31, 2007 and July 31, 2008 were $104,850 and $145,575, respectively. (d) All Other Fees The aggregate fees billed for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item for the last two fiscal years ended July 31, 2007 and July 31, 2008 were $0 and $0, respectively. (e) Pre-Approval Policies and Procedures (1) Audit and Non-Audit Services Pre-Approval Policies and Procedures I. Purpose Under the Sarbanes-Oxley act of 2002 (the "Act"), the audit committee (the "Committee") of the Board of Trustees of Fifth Third Funds (the "Trust") is responsible for the appointment, compensation and oversight of the work of the Trust's independent auditor. As part of this responsibility, the Committee is required to grant approval for audit and non-audit services performed by the independent auditor for the Trust in order assure that they do not impair the auditor's independence from the Trust. To implement these provisions of the Act, the Securities and Exchange Commission (the "SEC") has issued rules specifying the types of services that the Trust's independent auditor may not provide to the Trust, as well as the committee's administration of the engagement of the independent auditor. Under these rules, the SEC has provided that a permissible approval of audit and non-audit services can take the form of either (i) an express approval of a particular engagement, or (ii) a pre-approval (where a specific type of service is authorized, generally subject to a fee maximum). The latter type of approvals are authorized by SEC rules only subject to detailed policies and procedures. Accordingly, the Committee has adopted these audit and non-audit services pre-approval policies and procedures, which set forth the procedures and the conditions pursuant to which services for the Trust may be performed by the independent auditor under pre-approvals. II. General Pre-Approval Policies It is the policy of the committee that audit and non-audit services to be performed by the Trust's independent auditor be pre-approved only when in the best interests of the Trust's shareholders and fully consistent with applicable law and, particularly, the maintenance of the auditor's independence. In granting any pre-approval, consideration shall be given to: 1. The qualifications of the auditor to perform the services involved; 2. The proposed costs (which may be presented as an estimate or based on professional time charges subject to a ceiling) of the services and the reasonableness thereof; 3. The permissibility of the services under applicable rules and guidance of the SEC; 4. The effect, if any, of the performance of the proposed services on the auditor's independence; 5. The effect of the compensation for the proposed services on the auditor's independence; and 6. The effect, if any, of the proposed services on the Trust's ability to manage or control risk or to improve audit quality. While non-audit services may include reviewing and/or validating procedures or work products of the Trust, they may not include the production or modification of such procedures or work products. While non-audit services may include market research and strategic insights, such services shall be limited to factual reports and shall not include recommendations. No pre-approval shall be made in a manner that would constitute a delegation to the Trust's management. III. Procedures for Pre-Approval by the Committee 1. Requests for pre-approval shall be in writing and may be made by either the independent auditors or by management of the Trust. 2. All requests for pre-approval shall be made to the full Committee at regularly scheduled meetings thereof (or at a special meeting of the Committee set to coincide with regular meetings of the Trust's Board of Trustees) whenever practicable. 3. Under normal circumstances, requests for pre-approval should be presented at least 14 days prior (and in no event later than 48 hours prior) to the proposed commencement of the engagement. 4. If consideration of a request for pre-approval on the dates identified in Section III (2) would not be timely, the requesting party shall notify the Committee's chairman. The Committee's chairman shall then determine whether to schedule a special meeting of the Committee (which may be conducted telephonically) on an alternative date or whether the request may appropriately be presented to a delegate of the Committee under procedures set forth in Section IV below. 5. Requests for pre-approval may include, but are not limited to, the following services: A. Audit engagement, particularly for interim periods; B. Preparation of fund tax returns; C. Review and consents with respect to use of reports in post-effective amendments to the registration statements of the Trust; D. Review of its shareholder materials; E. Review and validation of fund procedures (e.g., valuation, interfund lending, etc.), and F. Market research and strategic insights. 6. Requests for pre-approval should identify the nature of the services to be provided in a manner sufficiently specific to allow evaluation of the considerations identified above in Section II. 7. Requests for pre-approval must include an assessment by the independent auditor of their independence should the request be granted and the proposed services rendered. 8. The Committee's action on a request for pre-approval shall be recorded in the Committee's minutes. 9. The Committee's action on a request for pre-approval shall be communicated in writing to the independent auditor and, under normal circumstances, a copy of this communication shall be provided to the Trust's management. 10. The Committee's action on a request for pre-approval shall be reported to the full board of Trustees. 11. Pre-approvals will be granted for a period of no more than one year. IV. Procedures for Pre-Approval by a Delegate of the Committee 1. Where it has been determined by the Committee's chairman that consideration of a request for pre-approval by the full Committee would not be timely, the chairman may determine that the request be presented to a member(s) of the Committee appointed by the Committee as its delegate (the "delegate") for this purpose. (as of the date of the adoption of these guidelines and procedures, John E. Jaymont has been so appointed, and such appointment may be revoked or modified by the Committee at any time.) 2. Requests for pre-approval shall be in writing and may be made by either the independent auditors or by management of the Trust. 3. Under normal circumstances, requests for pre-approval should be presented at least 14 days prior (and in no event later than 48 hours prior) to the proposed commencement of the engagement. 4. Requests for pre-approval may include, but are not limited to, the following services: a. Audit engagement, particularly for interim periods; b. Preparation of fund tax returns; c. Review and consents with respect to use of reports in post-effective amendments to the registration statements of the Trust; d. Review of its shareholder materials; e. Review and validation of fund procedures (e.g., valuation, interfund lending, etc.); and f. Market research and strategic insights. 5. Requests for pre-approval should identify the nature of the services to be provided in a manner sufficiently specific to allow evaluation of the considerations identified above in Section II. 6. Requests for pre-approval must include an assessment by the independent auditor of their independence should the request be granted and the proposed services rendered. 7. The delegate's action on a request for pre-approval shall be communicated in writing to the independent auditor, with a copy to each other member of the Committee and, under normal circumstances, to the Trust's management. 8. Pre-approvals by the delegate shall be reviewed by the Committee at a meeting held no later than the next scheduled meeting of the Board of Trustees or the Committee, whichever occurs sooner. An earlier review shall be conducted upon the written request of one or more Committee members addressed to the Committee's Chairman. 9. Pre-approvals by the delegate may be modified or revoked by the Committee, but will not absolve the Trust of its responsibility to compensate the independent auditor for services rendered prior to such modification or revocation. 10. The results of the Committee's review of the delegate's action on a request for pre-approval shall be recorded in the Committee's minutes and reported to the full board of Trustees. 11. Pre-approvals will be granted by the delegate for a period of no more than one year. V. Procedures for Monitoring Engagements Authorized under Pre-Approval Procedures The independent auditor shall inform the Committee in writing upon the Commencement of services rendered under a pre-approval. The independent auditor shall thereafter provide the Committee with written quarterly progress reports within one month of the close of each calendar quarter detailing the work done and fees and other charges incurred during said calendar quarter. Should fees and expenses exceed those specified in a pre-approval (or appear likely to do so prior to completion of the work), the independent auditor or management shall so apprise the Committee and an additional express approval or pre-approval must be obtained. VI. Amendment These policies and procedures may be amended or revoked at any time by the Committee and shall be reviewed at least annually in conjunction with review of the Audit Committee charter. (2) None, or 0% of services relating to the Audit-Related Fees, Tax Fees and All Other Fees disclosed above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) No disclosures are required by this Item 4(f). (g) The aggregate non-audit fees billed for the fiscal year ended July 31, 2007 and July 31, 2008 for services rendered by the principal accountant to the registrant were $104,850 and $145,575, respectively. The aggregate non-audit fees billed for the fiscal year ended July 31, 2007 and July 31, 2008 for services rendered by the principal accountant to the investment adviser were $81,100 and $54,173, respectively. (h) The Audit Committee has considered that the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. A Schedule of Investments is included as a part of the reports to shareholders filed under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees since the registrant last disclosed its procedures pursuant to Item 22(b)(15) of Schedule 14A or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that 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 Securities and Exchange Commission's rules and forms. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) The Code of Ethics is attached hereto. (a)(2) The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, 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 /s/ E. Keith Wirtz - ------------------ E. Keith Wirtz President Date: October 7, 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: October 7, 2008 /s/ Shannon King - ---------------- Shannon King Treasurer (Principal Financial and Accounting Officer) Date: October 7, 2008