UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER: 811-5669
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FIFTH THIRD FUNDS
(Exact Name of Registrant as Specified in Charter)
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38 Fountain Square Plaza
Cincinnati, Ohio 45263
(Address of Principal Executive Office) (Zip Code)
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Registrant's Telephone Number, including area code: (800) 282-5706
(Name and Address of Agent for Service)
E. Keith Wirtz
President
Fifth Third Funds
38 Fountain Square Plaza
Cincinnati, Ohio 45263
with a copy to:
David A. Sturms
Vedder Price P.C.
222 North LaSalle Street
Chicago, IL 60601-1003
Date of fiscal year end: July 31
Date of reporting period: July 31, 2009
ITEM 1. REPORT TO STOCKHOLDERS.
FIFTH THIRD FUNDS
[LOGO]
2009 STOCK AND BOND MUTUAL FUNDS
Annual Report to
Shareholders July 31, 2009
Advised by:
[LOGO 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
will 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 filed on
Form N-Q and 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) ........................... 31
Fifth Third LifeModel Moderate(SM) ........................................ 34
Fifth Third LifeModel Moderately Conservative(SM) ......................... 37
Fifth Third LifeModel Conservative(SM) .................................... 40
High Yield Bond ........................................................... 44
Total Return Bond ......................................................... 46
Short Term Bond ........................................................... 48
Schedules of Investments .................................................. 51
Notes to Schedules of Investments ......................................... 106
Statements of Assets and Liabilities ...................................... 108
Statements of Operations .................................................. 112
Statements of Changes in Net Assets ....................................... 116
Statement of Cash Flows ................................................... 138
Financial Highlights ...................................................... 140
Notes to Financial Highlights ............................................. 162
Notes to Financial Statements ............................................. 163
Report of Independent Registered Public Accounting Firm ................... 187
Supplemental Information .................................................. 188
OUR MESSAGE TO YOU
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Capitalizing on a nearly complete reversal in investor sentiment, global markets
enjoyed significant rallies in equities and many fixed income investments over
the past five months. This rally, however, did not overcome the deep losses
sustained during the first seven months of the 12-month period ended July 31,
2009, and many Fifth Third Funds finished the fiscal year with losses.
Within the stock market, results reported during the 12-month period included:
o A 19.96% decline for the S&P 500 Index(1) of large cap stocks.
o A 20.25% decline for the S&P 400 Index(1) of mid cap stocks.
o A 19.26% decline for the S&P 600 Index(1) of small cap stocks.
o A 22.60% drop for the MSCI EAFE Index(1) of international stocks.
Fear dominated the first portion of the period as credit markets seized, an
economic recession swept across the globe, and Wall Street icons toppled. Few
investments outside of U.S. Treasury bonds, the U.S. dollar, and gold generated
positive returns. In early March, the clouds lifted and signs of life in the
U.S. economy restored a sense of optimism among investors. In turn, domestic
stocks, international equities, non-Treasury bonds, and commodities vaulted
higher through the spring and first part of the summer.
To recap, a number of factors buffeted the world's financial markets during the
recently concluded 12-month period, including:
1. The global economic recession. Many countries around the world joined the
U.S. in reporting multiple quarters of economic contraction. Crashing real
estate markets, shrinking consumption rates, and rising unemployment led
to weakened financial markets, reduced production, and falloffs in
consumer spending. By the closing months of the period, however, many
rates of decline were stabilizing and production was picking up in key
Asian markets.
2. Aggressively responsive governments. Deteriorating conditions in the U.S.
financial markets drew a flurry of relief efforts from the federal
government. Aid packages for troubled banks, mortgage agencies, and
taxpayers, among others, injected billions of dollars into the economy.
Yet the federal deficit ballooned, stirring debates over the potential of
inflation in the not-too-distant future, especially since officials around
the globe have enacted similar programs.
3. A topsy-turvy bond market. As investors faced many unknowns through the
first half of the fiscal year, fixed income markets were all but shut
down. From mortgage-backed securities, which tumbled along with the
slumping housing market, to the highest quality corporate bonds, which
weakened as the new-issue market dried up, essentially any debt instrument
outside of U.S. Treasury issues struggled. Many non-Treasury debentures
recovered nicely in 2009, however, as issuers benefited from a near-zero
short-term lending rate from the Federal Reserve, large infusions of
government support, and increasing optimism about the economy.
4. Commodity market volatility. Oil prices dropped more than $100 a barrel
during the first half of the period, but regained more than 70% from the
fiscal year lows during the second half. Base metals such as copper
followed a similar path as prices reflected sentiment over the global
economy. Natural gas lagged the market due to a worldwide supply glut, but
few expect prices to remain depressed for long.
5. Fluctuating risk appetites. Through the first seven months of the period,
many investors, facing a dizzying array of negatives, avoided any
investments holding a trace of risk. As a result, U.S. Treasury bonds
soared to historic highs in late December as corporate bonds
plummeted--most notably in the high yield space--and stocks followed by
touching a multi-
1
year low in early March. Risk tolerance turned in early March, however,
and low quality investments led a rally through the balance of the period
in both the stock and bond markets.
The broader trends also were reflected in the fixed income market, where U.S.
Treasury issues, which generally benefit from flights to safety, thrived during
2008. As investor fears gradually diminished following the New Year, however,
previously beaten down mortgage-related debt and high yield bonds soared through
July. Yields on cash investments reflected the Fed's historic reduction in its
primary interest rate, and the yield curve grew increasingly more pitched as
inflationary worries blossomed and drove long-term rates higher.
Investment professionals are well versed in the market's potential for
volatility. I believe very few, however, could have foreseen the incredible
swings we experienced over the past 12 months. Such an experience serves as a
reminder that investments may recover and reward patient investors for
maintaining a long-term perspective.
Within the Fifth Third Funds, many of our portfolio managers were admittedly
exasperated with developments over the past 12 months. In the face of such
unprecedented challenges, this is not unexpected. Instead of veering from
time-tested strategies built around fundamentally sound high quality stocks and
bonds, each manager reassessed his or her portfolio to ensure it continued to
meet our core investment philosophy. As a result, each stock and bond Fund
remained focused on its mission to provide shareholders with solid long-term
returns, and each Money Market Fund successfully maintained the standard $1.00
net asset value while offering short-term returns and liquidity for
shareholders.
Looking ahead, our expectations on the macro front include:
o Increased sense of normalcy in the bond markets with riskier issues
trading in closer correlation to U.S. Treasury debt.
o Increasing attention to the potential for inflation due to the level of
debt issued by the U.S. Government.
o A gradual improvement in U.S. corporate earnings.
o Range-bound returns from domestic stocks with the potential for an upswing
in late 2009.
o Increasing signs of recovery in the U.S. economy through the second half
of 2009, leading to a modest growth rate in the Gross Domestic Product.
o Stabilization in the U.S. housing market.
o Continued retrenchment by U.S. consumers, resulting in a higher personal
savings rate and lower spending levels.
In closing, the past 12 months have proven unsettling for investors at both the
market's highs and lows. As a result, I can understand why some would question
the viability of an investment plan. History shows, however, that high quality,
fundamentally sound stocks and bonds consistently perform well in a variety of
market environments. By investing in Fifth Third Funds, we believe such holdings
represent the foundation of your portfolio.
Thank you for your continued confidence in Fifth Third Funds.
/s/ E. Keith Wirtz, CFA
E. Keith Wirtz, CFA
President
TERMS AND DEFINITIONS(1)
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THE S&P 500 STOCK 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 S&P MIDCAP 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 S&P SMALLCAP 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.
BETA measures a stock's volatility relative to the rest of the stock market.
DURATION is the weighted average maturity of a bond's cash flow.
2
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3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
SMALL CAP GROWTH FUND
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For the 12-month period ended July 31, 2009, the Fifth Third Small Cap Growth
Fund (Institutional) declined 24.85% on a net of fee basis, underperforming its
benchmark, the Russell 2000(R) Growth Index, which dropped 20.86%.
In what was one of the most volatile 12-month periods many investors will
experience in a lifetime, equity markets experienced a wild ride during the
Fund's fiscal year. Short-term interest rates sank as low as 0%, unemployment
soared past 9.0%, large investment banks disappeared, and the budget deficit
spiked to uncommon levels. Meanwhile, stock prices slumped through the end of
November, posted a modest rally at the end of 2008, and plunged again during the
first quarter of 2009, before gaining through the end of July.
Signs of stabilization in the slumping economy helped boost sentiment during the
late-period advance and encouraged investors to venture back into riskier
securities. Such conditions proved advantageous to the Fund and contributed to
its out-performance relative to the benchmark during the final six months of the
period; however, this boost wasn't enough to completely reverse the losses
absorbed during the first six months.
Detractors during the full 12-month period included Information Technology
stocks, especially among Internet software and services holding. Laggards in the
Healthcare sector also hurt, most notably within the biotechnology industry,
which tends to rise and fall independent of macroeconomic developments.
On the positive side, holdings in the textiles and apparel industry and among
media companies lifted the Fund's stake in the Consumer Discretionary sector.
Materials sector stocks, especially within the packaging and container industry,
also added to relative gains.
As economic conditions seemingly improved late in the period, the Fund focused
on traditionally cyclical companies within the Information Technology sector,
adding names in the software and semiconductor and semiconductor equipment
industries. Alternatively, it exited holdings in the Industrials and Energy
sectors that had rallied considerably since the first of the year.
INVESTMENT RISK CONSIDERATIONS
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Small capitalization funds typically carry additional risk since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
large company stocks on average.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2009
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ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
------- ------- ------- --------
Institutional -24.85% 0.18% 0.81% $ 10,835
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Class A Shares -28.72% -1.10% 0.04% $ 10,038
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Class B Shares -29.30% -0.98% -0.22% $ 9,785
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Class C Shares -25.54% -0.84% -0.21% $ 9,792
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Russell 2000(R)
Growth Index(1) -20.86% 2.06% 0.17% $ 10,170
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PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.FIFTHTHIRDFUNDS.COM.
DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A
PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF
FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.25% (INSTITUTIONAL SHARES), 1.50% (CLASS A), 2.25% (CLASS B) AND
2.26% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The 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 the 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, 2009*
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AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Genoptix, Inc. ........................................................ 2.54%
Rock-Tenn Co., Class A ................................................ 2.39%
Polypore International, Inc. .......................................... 2.27%
Iconix Brand Group, Inc. .............................................. 2.14%
NuVasive, Inc. ........................................................ 2.14%
Aegean Marine Petroleum Network, Inc.. ................................ 2.08%
ICON PLC ADR .......................................................... 2.07%
Cardronics, Inc. ...................................................... 1.98%
Varian Semiconductor Equipment Associates, Inc. ....................... 1.87%
Emergency Medical Services Corp., Class A ............................. 1.79%
* Long-term securities.
+ Portfolio composition is subject to change.
4
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
SMALL CAP GROWTH FUND
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GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Fifth Third Small Cap Growth
(Institutional Shares) Russell 2000(R) Growth Index
7/31/99 $ 10,000 $ 10,000
9,652 9,812
12/99 11,594 13,088
12,544 14,303
12,382 13,249
12,604 12,722
12/00 11,550 10,153
9,850 8,609
11,288 10,156
9,179 7,304
12/01 11,076 9,216
11,315 9,035
10,012 7,617
8,093 5,978
12/02 8,307 6,427
8,036 6,178
9,377 7,669
10,315 8,472
12/03 11,668 9,547
11,896 10,080
11,820 10,089
11,071 9,482
12/04 12,373 10,912
11,931 10,168
12,240 10,521
12,764 11,186
12/05 12,946 11,366
15,139 12,998
14,014 12,056
13,655 11,844
12/06 14,506 12,882
15,391 13,201
16,827 14,084
16,611 14,087
12/07 16,111 13,790
13,598 12,021
14,578 12,559
13,010 11,681
12/08 8,982 8,475
8,073 7,650
10,123 9,438
7/31/09 10,835 10,170
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, 2009.
5
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
MID CAP GROWTH FUND
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For the 12-month period ended July 31, 2009, the Fifth Third Mid Cap Growth Fund
(Institutional) declined 23.93% on a net of fee basis, underperforming its
benchmark, the Russell Midcap(R) Growth Index, which dropped 21.87%.
Equity markets endured incredible volatility during one of the most dynamic
12-month periods many investors will experience in a lifetime. The near-collapse
of the financial system drove stocks lower during the first few months of the
period, but a modest year-end rally eased some losses. The sell-off resumed in
early 2009 as economic conditions worsened, but early signs of a recovery and a
massive infusion of government aid sparked a rally from early-March lows through
the end of the period.
Selling pressures early on were exacerbated by hedge funds, which were forced to
sell liquid assets to fund client redemptions. The late-period surge was fueled
by low-quality investments as investors reacquired a taste for risk. As that
occurred, the Fund benefited somewhat from its bias toward smaller
capitalization stocks within the mid cap universe.
Detractors during the 12-month period included Healthcare sector stocks that
slumped in response to early healthcare reform proposals. Most significantly,
overweight positions relative to the benchmark, in the life sciences tools and
services and healthcare equipment and supplies industries impacted fund
performance. In addition, ineffective stock selection among specialty retailers
and in the hotels, restaurants, and leisure industry hindered performance in the
Consumer Discretionary sector.
Positive contributions came from the Energy sector, where the Fund balanced
underperforming exploration and equipment outfits with outperforming equipment
and services firms. Investments in the capital markets industry enhanced returns
from the Financials sector.
As economic conditions seemingly improved late in the period, the Fund focused
on traditionally cyclical companies within the Information Technology (IT)
sector, adding names in the semiconductor and semiconductor equipment and IT
services industries. Alternatively, it exited holdings in the Industrials and
Energy sectors that had rallied considerably since the first of the calendar
year.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- ------- --------
Institutional -23.93% 0.48% 0.66% $ 10,676
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Class A Shares -27.98% -0.81% -0.13% $ 9,872
- --------------------------------------------------------------------------------
Class B Shares -27.64% -0.74% -0.37% $ 9,633
- --------------------------------------------------------------------------------
Class C Shares -24.82% -0.51% -0.35% $ 9,660
- --------------------------------------------------------------------------------
Russell Midcap(R)
Growth Index(1) -21.87% 2.48% 1.11% $ 11,170
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PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.FIFTHTHIRDFUNDS.COM.
DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A
PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF
FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.17% (INSTITUTIONAL SHARES), 1.42% (CLASS A) AND 2.17% (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 date for the
Class B Shares of the Mid Cap Growth Fund is October 11, 2000. Prior to such
date, quoted performance reflects the performance of Class A Shares adjusted to
reflect expenses and applicable sales charges for Class B Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
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AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Apollo Group, Inc., Class A ............................................ 2.28%
Cognizant Technology Solutions Corp., Class A .......................... 2.05%
American Tower Corp., Class A .......................................... 2.05%
Waddell & Reed Financial, Inc., Class A ................................ 2.02%
Oceaneering International, Inc ......................................... 2.02%
DENTSPLY International, Inc ............................................ 2.00%
Intuit, Inc ............................................................ 1.94%
LKQ Corp. .............................................................. 1.92%
Digital Realty Trust, Inc .............................................. 1.91%
Noble Corp ............................................................. 1.90%
* Long-term securities.
+ Portfolio composition is subject to change.
6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
MID CAP GROWTH FUND
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GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Mid Cap Growth
(Institutional Shares) Russell Midcap(R) Growth Index
7/31/1999 $ 10,000 $ 10,000
9,338 9,812
12/99 11,500 13,685
13,018 16,576
12,550 15,348
13,587 15,735
12/00 12,296 12,077
10,216 9,048
12,125 10,512
9,374 7,590
12/01 11,524 9,643
11,258 9,473
9,184 7,743
7,527 6,413
12/02 8,018 7,001
7,808 7,000
9,296 8,312
9,787 8,907
12/03 11,025 9,991
11,331 10,474
11,266 10,584
10,607 10,126
12/04 11,942 11,537
11,532 11,345
12,296 11,734
12,971 12,502
12/05 13,291 12,933
14,904 13,917
14,065 13,264
13,951 13,382
12/06 14,624 14,311
15,490 14,878
16,558 15,881
16,568 16,222
12/07 15,856 15,947
14,246 14,201
14,572 14,861
11,947 12,223
12/08 8,625 8,878
8,393 8,580
9,978 10,353
7/31/2009 10,676 11,170
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, 2009.
7
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
QUALITY GROWTH FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Quality Growth Fund
(Institutional) declined 21.13% on a net of fee basis, underperforming its
benchmarks, the Russell 1000(R) Growth Index, which dropped 17.57%, and the S&P
500 Index, which retreated 19.96%.
One must look back several decades to find a period when market pessimism and
oversold conditions were as extreme as the second half of 2008. The distress and
panic extended into early March as economic conditions continued to deteriorate.
Yet preliminary indications of a recovery subsequently sparked a bold rally,
which continued into the closing days of the fiscal year.
Against this backdrop, all 10 economic sectors in the benchmark declined during
the 12-month period. The Fund lagged its primary benchmark due to a defensive
bias that failed to keep pace with the powerful late-period rally, which was led
by lower-quality, higher-beta stocks.
Much of the Fund's underperformance stemmed from unfavorable stock selection in
the Healthcare sector, which suffered amid perceptions that healthcare reform
efforts would limit growth prospects. Laggards within the Consumer Discretionary
and Consumer Staples sectors further diminished returns as investors flocked to
higher-beta stocks in groups such as casual dining restaurants, specialty
retailers, and hotels.
Investments in the Financials sector led the Fund as limited exposure to
troubled banks and insurers provided a relative lift, along with stakes in asset
managers. In the latter stages of the period, increased exposure to the
rebounding Energy sector enhanced returns, as did a slightly overweight stake,
relative to the benchmark, in the Information Technology sector--one of the best
performers during the 12-month period.
At period-end, concerns about continued strains in the credit markets, the
global banking system, and economic weakness outside of the U.S. lingered. After
five consecutive months of positive equity performance, the question remained
whether the economy was poised for a sustained recovery. Regardless, the Fund
continues to look for signs of improving economic activity and with it, areas of
market leadership.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- ------- --------
Institutional -21.13% 0.99% -2.10% $ 8,087
- --------------------------------------------------------------------------------
Class A Shares -25.22% -0.29% -2.84% $ 7,497
- --------------------------------------------------------------------------------
Class B Shares -25.67% -0.35% -3.10% $ 7,299
- --------------------------------------------------------------------------------
Class C Shares -21.97% -0.05% -3.05% $ 7,332
- --------------------------------------------------------------------------------
Russell 1000(R)
Growth Index(1) -17.57% 0.70% -3.21% $ 7,218
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.13% (INSTITUTIONAL SHARES), 1.38% (CLASS A), 2.12% (CLASS B) AND
2.13% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The Fund's performance in the above table does not reflect the deduction of
taxes on Fund distributions, or redemption of shares. The inception date for the
Class B Shares of the Quality Growth Fund is October 11, 2000. Prior to such
date, quoted performance reflects the performance of Class A Shares adjusted to
reflect expenses and applicable sales charges for Class B Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Microsoft Corp ......................................................... 3.69%
International Business Machines Corp ................................... 3.58%
Cisco Systems, Inc ..................................................... 3.52%
Intel Corp ............................................................. 2.96%
Hewlett-Packard Co ..................................................... 2.83%
Oracle Corp ............................................................ 2.82%
Apple, Inc ............................................................. 2.62%
Google, Inc., Class A .................................................. 2.61%
Johnson & Johnson ...................................................... 2.39%
Qualcomm, Inc .......................................................... 2.34%
* 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 CHART]
Quality Growth
(Institutional Shares) Russell 1000(R) Growth Index
7/31/1999 $ 10,000 $ 10,000
9,786 9,950
12/99 11,369 12,452
12,190 13,339
11,975 12,979
11,755 12,281
12/00 10,934 9,660
9,092 7,641
9,607 8,284
7,907 6,676
12/01 9,430 7,687
9,183 7,488
7,370 6,090
6,006 5,173
12/02 6,365 5,543
6,149 5,484
7,123 6,269
7,492 6,514
12/03 8,362 7,192
8,388 7,249
8,277 7,389
7,629 7,003
12/04 8,288 7,646
7,876 7,333
8,177 7,514
8,536 7,815
12/05 8,806 8,048
9,139 8,297
8,626 7,973
8,811 8,287
12/06 9,242 8,778
9,356 8,883
10,094 9,492
10,853 9,891
12/07 11,222 9,815
10,114 8,816
10,371 8,926
9,164 7,826
12/08 7,093 6,043
6,735 5,794
7,619 6,739
7/31/2009 8,087 7,218
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, 2009.
9
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
DIVIDEND GROWTH FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Dividend Growth
Fund (Institutional) declined 21.12% on a net of fee basis, underperforming its
primary benchmark, the S&P 500 Index, which dropped 19.96%. Separately, the
Russell 1000(R) Index fell 20.17% and the Russell 1000(R) Growth Index slid
17.57%.
Fear-stricken financial markets and an economic recession pressured equities
through the first half of the period. After hitting 2008 lows in November, stock
prices rallied modestly before plummeting again through the first part of 2009.
A massive infusion of government aid and hints of economic improvement combined
to repair investor confidence in early March, and a swift rally ensued through
the end of the fiscal year.
Low quality stocks primarily led the charge off the March lows, a development
that hindered the returns from the Fund, which adheres to a high quality
philosophy. More defensive positions in the Healthcare sector further diminished
performance, especially among managed care companies that slumped amid
uncertainties around health care reform discussions. Ineffective stock selection
in the Information Technology sector also hurt returns.
Positive contributions came from the Industrials sector, where exposure among
mining equipment manufacturers paid off as commodities markets rallied in
mid-2009. Accordingly, Materials sector holdings also boosted relative gains. In
the Financials sector, which rebounded strongly after lackluster returns early
in the period, the Fund benefited from positions in fundamentally sound
companies.
Over the course of the 12-month period, the Fund, which started with a fairly
defensive profile, became more aggressively positioned. Along with an overweight
position, relative to the primary benchmark, in the Information Technology
sector, the Fund's stake in the Consumer Staples sector was reduced to near
neutral at period-end.
More broadly, 2009 is expected to be a poor year for dividends, with
expectations for declines in the S&P 500 Index dividend payouts as sizeable as a
23% drop. Nonetheless, the Fund continues to seek out companies with solid
balance sheets and the potential to expand payouts into the future.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
--------- ------- -------- --------
Institutional -21.12% 0.48% -5.81% $ 5,495
- --------------------------------------------------------------------------------
Class A Shares -25.31% -0.77% -6.52% $ 5,098
- --------------------------------------------------------------------------------
Class B Shares -25.79% -0.91% -6.67% $ 5,014
- --------------------------------------------------------------------------------
Class C Shares -21.93% -0.53% -6.74% $ 4,977
- --------------------------------------------------------------------------------
S&P 500 Index(1) -19.96% -0.13% -1.20% $ 8,867
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 2.22% (INSTITUTIONAL SHARES), 2.50% (CLASS A), 3.21% (CLASS B) AND
3.26% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The Fund's performance in the above table does not reflect the deduction of
taxes on Fund distributions, or redemption of shares. The inception date for the
Class B Shares of the Fund is October 11, 2000. Prior to such date, quoted
performance reflects the performance of Class A Shares adjusted to reflect
expenses and applicable sales charges for Class B Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
JPMorgan Chase & Co .................................................... 4.19%
Exxon Mobil Corp ....................................................... 3.56%
Johnson & Johnson ...................................................... 3.03%
United Technologies Corp ............................................... 2.88%
International Business Machines Corp ................................... 2.75%
Microsoft Corp ......................................................... 2.53%
Coca-Cola Co. (The) .................................................... 2.37%
Wisconsin Energy Corp .................................................. 2.27%
Google, Inc., Class A .................................................. 2.24%
Wal-Mart Stores, Inc ................................................... 2.12%
* 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 CHART]
Dividend Growth (Institutional Shares) S&P 500 Index
7/31/1999 $ 10,000 $ 10,000
9,649 9,678
12/99 10,658 11,118
11,039 11,371
10,647 11,068
10,165 10,961
12/00 8,552 10,104
6,957 8,906
7,266 9,427
6,154 8,043
12/01 6,687 8,903
6,505 8,928
5,533 7,732
4,626 6,396
12/02 4,702 6,935
4,522 6,717
5,005 7,751
5,019 7,956
12/03 5,659 8,925
5,822 9,076
5,831 9,232
5,359 9,059
12/04 5,915 9,896
5,581 9,683
5,713 9,816
5,996 10,170
12/05 6,179 10,383
6,389 10,820
6,297 10,664
6,636 11,268
12/06 6,984 12,023
7,051 12,100
7,523 12,859
7,918 13,121
12/07 7,812 12,683
7,258 11,485
6,823 11,172
6,631 10,237
12/08 5,106 7,991
4,626 7,111
5,154 8,244
7/31/2009 5,495 8,867
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, 2009.
11
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
MICRO CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Micro Cap Value
Fund (Institutional) declined 12.86 % on a net of fee basis, outperforming its
benchmarks, the Russell Microcap(R) Value Index, which fell 23.78%, and the
Russell 2000(R) Value Index, which dropped 20.67%.
As the U.S. economy seized up during the first part of the period, micro cap
stocks tumbled alongside the rest of the broader market. The near collapse of
the financial industry in the fall of 2008 staggered investors, who then
absorbed deteriorating economic news through the opening months of 2009. Spirits
lifted slightly after equities touched multi-year lows in early March and led to
a bold rally through the period's end.
One key factor in the Fund's out-performance was its effective use of cash
during the fiscal year. Early on, an above-average cash position from a
historical perspective, allowed the Fund to capitalize on sinking stock prices
in October and November by purchasing stocks in fundamentally solid companies at
considerable discounts. This strategy proved quite effective in the Consumer
Discretionary sector, where the Fund built up an overweight position, relative
to the benchmark, with an emphasis on retailers and restaurants. Amid the
late-period market turnaround, many of these holdings outperformed the broader
market.
Elsewhere, a significant underweight position in the Financials sector--one of
the poorest performers in the benchmark--further aided performance, as did an
overweight stake in the Information Technology sector, which helped lead the
market's rebound.
Aslight overweight in the Energy sector hindered returns as oil prices plummeted
from all-time highs posted in 2008. An underweight stake in the
Telecommunication Services sector--a benchmark leader--further diminished
performance.
By period-end, the Fund's cash balance had returned to an above-average level
due in part to profit-taking in the Consumer Discretionary sector. Exposure in
the Financials sector remained significantly underweight and the allocation to
the Information Technology sector remained notably overweight.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- ------- ---------
Institutional -12.86% -0.02% 7.92% $ 21,427
- --------------------------------------------------------------------------------
Class A Shares -17.44% -1.30% 7.14% $ 19,927
- --------------------------------------------------------------------------------
Class B Shares -18.08% -1.05% 7.01% $ 19,686
- --------------------------------------------------------------------------------
Class C Shares -13.75% -0.88% 7.14% $ 19,932
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index(1) -20.67% 0.83% 6.41% $ 18,621
- --------------------------------------------------------------------------------
Russell Microcap(R)
Value Index(1) -23.78% -2.34% 7.09%(3) $ 18,630
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.89% (INSTITUTIONAL SHARES), 2.14% (CLASS A), 2.89% (CLASS B) AND
2.88% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The Fund's performance in the above table does not reflect the deduction of
taxes on Fund distributions, or redemption of shares. The inception date for the
Class B Shares is October 11, 2000. Prior to such date, quoted performance
reflects the performance of Class A Shares adjusted to reflect expenses and
applicable sales charges for Class B Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Stein Mart, Inc ........................................................ 2.20%
Benihana, Inc., Class A ................................................ 2.04%
Overhill Farms, Inc .................................................... 1.81%
Semitool, Inc .......................................................... 1.72%
Saia, Inc .............................................................. 1.69%
Meadowbrook Insurance Group, Inc ....................................... 1.62%
Symmetricom, Inc ....................................................... 1.59%
Audiovox Corp., Class A ................................................ 1.53%
Medical Action Industries, Inc ......................................... 1.51%
Rudolph Technologies, Inc .............................................. 1.50%
* 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 CHART]
Micro Cap Value Russell 2000(R) Russell Microcap
(Institutional Shares) Value Index Value Index
7/31/1999 $ 10,000 $ 10,000
9,303 9,442
12/99 9,710 9,587
10,702 9,953
10,183 10,147 $ 10,000
10,338 10,892 10,391
12/00 9,591 11,775 10,441
10,458 11,889 11,090
12,217 13,273 13,347
10,399 11,503 11,372
12/01 11,787 13,426 13,315
13,019 14,712 14,540
13,038 14,400 15,070
10,341 11,334 11,767
12/02 11,816 11,892 12,544
11,678 11,288 12,228
15,341 13,853 15,395
17,173 14,923 17,433
12/03 20,017 17,366 20,506
21,763 18,567 22,202
22,324 18,725 22,168
21,763 18,753 21,669
12/04 24,668 21,229 24,798
23,736 20,384 23,505
22,759 21,419 24,236
24,246 22,082 25,299
12/05 24,591 22,228 25,577
27,186 25,230 29,130
25,886 24,548 28,021
25,305 25,175 28,290
12/06 27,736 27,447 31,154
28,734 27,848 31,525
29,811 28,489 32,162
27,896 26,707 29,783
12/07 25,050 24,764 27,065
23,906 23,148 25,072
23,080 22,327 23,134
24,106 23,434 24,181
12/08 17,393 17,601 17,614
14,813 14,145 14,006
19,707 16,691 16,848
7/31/2009 21,427 18,621 18,630
The Russell Microcap(R) Value Index has no historical performance prior to June
2000, therefore the ending value for this index was not calculated from the
inception date of the Fund. The Russell 2000(R) Value Index was calculated from
the inception date of the Fund.
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, 2009.
(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, 2009, the Fifth Third Small Cap Value
Fund (Institutional) declined 19.32% on a net of fee basis, outperforming its
benchmark, the Russell 2000(R) Value Index, which dropped 20.67%.
From a market perspective, the fiscal year consisted of three distinct periods.
Through the first two and a half months, stocks generally followed a gradually
upward path as many investors figured the Federal Reserve Bank had resolved the
U.S. financial woes. In mid-September, however, the investment banking industry
all but collapsed and stocks subsequently tumbled for nearly six months as the
global economy worsened.
Selling pressure finally relented in early March and the market staged an
impressive rally through the end of the fiscal year. During that time, economic
news grew increasingly positive--showing that the rates of decline were
slowing--and the financial markets stabilized.
The Fund's out-performance occurred primarily in the closing months of the
period, due largely to solid stock selection in the Consumer Discretionary,
Consumer Staples, and Energy sectors. Opportunistic investments in the specialty
retail industry enhanced returns from the Consumer Discretionary sector, while
exposure in the beverages industry boosted the Consumer Staples position. Within
the Energy sector, the Fund benefited from effective investments in the coal
industry and among natural gas pipeline operators.
Concerns over the potential impact of a government-led healthcare reform effort
dampened returns from the Fund's Healthcare sector exposure, especially among
managed care and nursing home companies. Returns from the Information Technology
sector also lagged due to minimal exposure to the strong performing
communications equipment industry.
During the period, the Fund transitioned to a more defensive profile, shifting
to an overweight position relative to the benchmark in the Consumer Staples
sector in October, and an underweight stake in the Consumer Discretionary sector
in January. Furthermore, as the summer rally wore on, the Fund underweighted
Materials stocks in July. Wariness about the global financial markets resulted
in a continued underweight in the Financials sector, while regulatory
uncertainties prompted a reduction in Healthcare 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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE(2)
--------- -------- ------ --------- --------
Institutional 4/1/03 -19.32% 1.77% 6.97% $ 15,325
- --------------------------------------------------------------------------------
Class A Shares 4/1/03 -23.60% 0.47% 5.82% $ 14,314
- --------------------------------------------------------------------------------
Class B Shares 4/1/03 -24.12% 0.48% 5.90% $ 14,376
- --------------------------------------------------------------------------------
Class C Shares 4/1/03 -20.17% 0.73% 5.87% $ 14,352
- --------------------------------------------------------------------------------
Russell 2000(R)
Value Index(1) -20.67% 0.83% 6.41% $ 16,290
- --------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.FIFTHTHIRDFUNDS.COM.
DURING THE PERIOD SHOWN, THE TOTAL RETURN FIGURES REFLECT THE WAIVER OF A
PORTION OF THE FUND'S ADVISORY OR ADMINISTRATIVE FEES. WITHOUT SUCH WAIVER OF
FEES, THE TOTAL RETURNS WOULD HAVE BEEN LOWER. AS OF 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.30% (INSTITUTIONAL SHARES), 1.55% (CLASS A) AND 2.30% (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, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Endurance Specialty Holdings, Ltd ...................................... 2.22%
EnerSys ................................................................ 2.12%
Harmonic, Inc .......................................................... 2.08%
Platinum Underwriters Holdings, Ltd .................................... 2.04%
Insituform Technologies, Inc., Class A ................................. 2.01%
AAR Corp ............................................................... 1.87%
Perot Systems Corp., Class A ........................................... 1.83%
Phillips-Van Heusen Corp ............................................... 1.82%
Vectren Corp ........................................................... 1.79%
Fresh Del Monte Produce, Inc ........................................... 1.78%
* 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 CHART]
Small Cap Value (Institutional Shares) Russell 2000(R) Value Index
4/1/2003 $ 10,000 $ 10,000
11,240 12,119
11,860 13,056
12/03 13,841 15,192
14,837 16,244
14,732 16,381
14,346 16,406
12/04 15,471 18,572
16,041 17,833
16,520 18,738
16,741 19,318
12/05 17,326 19,446
18,519 22,073
18,281 21,476
18,460 22,024
12/06 19,692 24,012
20,421 24,363
21,092 24,924
20,081 23,364
12/07 18,851 21,664
17,859 20,250
18,059 19,532
18,583 20,501
12/08 13,472 15,398
10,994 12,374
13,893 14,602
7/31/2009 15,325 16,290
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR
WEBSITE AT WWW.FIFTHTHIRDFUNDS.COM.
The chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's 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,
2009.
15
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
ALL CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third All Cap Value Fund
(Institutional) declined 22.15% on a net of fee basis, outperforming its
benchmarks, the Russell 3000(R) Value Index, which dropped 22.76%, and the
Russell Midcap(R) Value Index, which lost 22.81%.
As credit markets collapsed during the first few months of the period, domestic
corporations halted all but the most essential activity to see how the situation
would resolve itself. In turn, stock prices suffered. Adding to the challenges
for investors, many asset classes, including value stocks, growth stocks,
international equities, high yield bonds, and commodities tumbled at similar
rates. After the first of the year, the economic recession further dampened
sentiment, and stocks continued falling through early March.
The Fund, however, had already started investing in modestly riskier equities
that had slumped during the downturn. As such, it was well-poised to participate
in the rally that was led by low-quality investments and occurred between early
March and the end of the fiscal year. In addition, the Fund's average weighted
market cap of $51 billion, compared to the $61 billion average of the Russell
3000 Value(R) Index, proved advantageous as the stocks of smaller entities
generally thrived during the late-period surge.
From a sector perspective, exposure in Healthcare, Industrials, and Information
Technology led Fund performance. Heightened merger and acquisition activity in
the blue chip pharmaceutical space boosted the Healthcare stake, while
previously depressed stocks in the electric motor, aircraft maintenance, and
temporary employment industries provided a lift in the Industrials sector. Among
Information Technology holdings, smaller semiconductor-related companies and
larger software firms outperformed.
Conversely, investments in Real Estate Investment Trusts, money center banks,
and insurers diminished returns within the Financials sector, while the
struggles of natural gas drillers and refiners translated to losses in the
Energy sector. Decreased demand for electric power also hindered performance in
the Utilities sector.
INVESTMENT RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
Small capitalization funds typically carry additional risk since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
large company stocks on average.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- -------- --------
Institutional -22.15% 0.29% 4.74% $ 15,892
- --------------------------------------------------------------------------------
Class A Shares -26.18% -0.97% 3.93% $ 14,708
- --------------------------------------------------------------------------------
Class B Shares -26.43% -0.94% 3.86% $ 14,599
- --------------------------------------------------------------------------------
Class C Shares -22.97% -0.73% 3.85% $ 14,593
- --------------------------------------------------------------------------------
Russell 3000(R)
Value Index(1) -22.76% -0.21% 1.32% $ 11,406
- --------------------------------------------------------------------------------
Russell Midcap(R)
Value Index(1) -22.81% 2.01% 5.24% $ 16,668
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.40% (INSTITUTIONAL SHARES), 1.65% (CLASS A), 2.40% (CLASS B) AND
2.39% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The Fund's performance in the above table does not reflect the deduction of
taxes on Fund distributions, or redemption of shares. For the period prior to
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. 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
Fifth Third/Maxus Equity Fund Investor Shares and is adjusted for the maximum
sales charges. The quoted performance of Class B and Class C Shares reflects the
performance of the Fifth Third/Maxus Equity Fund Investor 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, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Bank of America Corp ................................................... 3.05%
JPMorgan Chase & Co .................................................... 2.96%
Exxon Mobil Corp ....................................................... 2.73%
Schering-Plough Corp ................................................... 2.49%
Transocean, Ltd ........................................................ 2.38%
Wells Fargo & Co ....................................................... 2.11%
Chevron Corp ........................................................... 2.08%
Amgen, Inc ............................................................. 1.97%
Forest Laboratories, Inc ............................................... 1.97%
AT&T, Inc .............................................................. 1.84%
* 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 CHART]
All Cap Value Russell 3000(R) Russell Midcap(R)
(Institutional Shares) Value Index Value Index
7/31/1999 $ 10,000 $ 10,000 $ 10,000
9,500 9,304 9,166
12/99 9,886 9,782 9,511
11,142 9,852 9,607
11,051 9,434 9,446
11,611 10,173 10,357
12/00 12,235 10,568 11,335
12,070 9,997 10,935
12,792 10,532 11,706
11,120 9,362 10,353
12/01 13,206 10,111 11,599
13,179 10,565 12,515
12,081 9,716 11,930
10,184 7,874 9,789
12/02 11,116 8,576 10,480
10,398 8,157 10,055
12,813 9,597 11,854
13,500 9,834 12,559
12/03 15,635 11,246 14,470
16,314 11,620 15,243
16,358 11,722 15,507
16,139 11,889 15,776
12/04 18,043 13,151 17,900
17,976 13,116 18,039
18,350 13,374 18,887
19,173 13,884 19,898
12/05 19,429 14,052 20,164
21,040 14,979 21,700
20,750 15,021 21,579
21,864 15,904 22,341
12/06 23,432 17,192 24,240
24,100 17,409 25,418
25,806 18,225 26,346
25,313 18,088 25,412
12/07 23,982 17,018 23,896
21,570 15,563 21,830
20,448 14,759 21,845
18,720 13,982 20,201
12/08 14,126 10,849 14,709
12,211 9,004 12,550
14,610 10,518 15,179
7/31/2009 15,892 11,406 16,668
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, 2009.
17
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
DISCIPLINED LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Disciplined Large
Cap Value Fund (Institutional) declined 21.78% on a net of fee basis,
outperforming its benchmark, the Russell 1000(R) Value Index, which retreated
22.94%.
The global credit crisis and economic slowdown of 2008 weighed on equity markets
until early March 2009. At that point, stock prices reversed course and swiftly
moved higher as leading economic indicators fostered confidence that a
turnaround was underway, massive amounts of global fiscal and monetary stimulus
were working, and market valuations had hit attractive levels.
As the market ebbed and flowed during the fiscal year, stocks in all 10 of the
benchmark's economic sectors posted negative returns. Those faring best over the
12-month period included traditionally defensive sectors such as Consumer
Staples, Healthcare, and Telecommunication Services. The poorest performing
sector was Financials, which sat at the center of the global credit crisis,
followed closely by the Industrials and Materials sectors, which lagged
considerably early in the period as emerging market growth expectations
faltered.
Compared to the benchmark, the Fund's out-performance came primarily from solid
stock selection in the Healthcare sector. Most notably, holdings in the
pharmaceutical industry benefited from heightened merger activity driven by
fears over patent expirations on leading revenue-producing drugs. An overweight
position, relative to the benchmark, in the Telecommunication Services sector
enhanced returns, as did an emphasis on stocks with low price/earnings ratios.
Given the significant downdraft in the overall equity market, the Fund's
aversion to high-risk stocks proved beneficial, as did its cash position, which
helped cushion the impact of the broad decline.
The Fund's relative performance was negatively impacted by stock selection in
the Financials sector. More specifically, adverse results from Real Estate
Investment Trusts and insurance industry holdings overwhelmed relatively
productive selection within the banking industry. In addition, underexposure to
the defensive Utilities sector and overexposure to the economically sensitive
Industrials sector both proved counterproductive in the weakening economic
environment.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- ------- --------
Institutional -21.78% -0.35% 0.98% $ 11,025
- --------------------------------------------------------------------------------
Class A Shares -25.90% -1.62% 0.20% $ 10,206
- --------------------------------------------------------------------------------
Class B Shares -26.25% -1.61% 0.08% $ 10,078
- --------------------------------------------------------------------------------
Class C Shares -22.55% -1.34% 0.00% $ 9,996
- --------------------------------------------------------------------------------
Russell 1000(R)
Value Index(1) -22.94% -0.29% 0.94% $ 10,981
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.07% (INSTITUTIONAL SHARES), 1.32% (CLASS A) AND 2.07% (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 date for the
Class B Shares of the Disciplined Large Cap Value Fund is October 11, 2000.
Prior to such date, quoted performance reflects performance of Class A Shares
and is adjusted to reflect expenses and applicable sales charges of Class B
Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Chevron Corp ........................................................... 4.10%
PG&E Corp .............................................................. 3.70%
Verizon Communications, Inc ............................................ 3.50%
Exxon Mobil Corp ....................................................... 3.35%
Apache Corp ............................................................ 3.07%
JPMorgan Chase & Co .................................................... 3.00%
3M Co .................................................................. 2.98%
Transocean, Ltd ........................................................ 2.91%
Johnson & Johnson ...................................................... 2.87%
ConocoPhillips ......................................................... 2.83%
* 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 CHART]
Disciplined Large Cap Value
(Institutional Shares) Russell 1000(R) Value Index
7/31/1999 $ 10,000 $ 10,000
9,083 9,292
12/99 9,473 9,797
8,833 9,844
9,422 9,383
10,114 10,121
12/00 10,681 10,485
9,533 9,871
9,745 10,353
8,859 9,219
12/01 9,362 9,899
9,518 10,304
8,583 9,426
7,393 7,656
12/02 8,077 8,362
7,650 7,955
9,109 9,329
9,400 9,522
12/03 10,835 10,873
11,147 11,203
11,419 11,301
11,511 11,476
12/04 12,322 12,667
12,371 12,678
12,513 12,890
13,152 13,391
12/05 13,059 13,560
13,825 14,365
14,011 14,450
14,814 15,348
12/06 15,805 16,577
15,988 16,782
16,933 17,609
16,926 17,566
12/07 16,056 16,548
14,882 15,105
14,119 14,302
13,196 13,428
12/08 10,216 10,450
8,823 8,698
10,200 10,150
7/31/2009 11,025 10,981
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, 2009.
19
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
STRUCTURED LARGE CAP PLUS FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Structured Large
Cap Plus Fund (Institutional) declined 36.73% on a net of fee basis, trailing
its benchmarks, the S&P 500 Index, which retreated 19.96%, and the Russell
1000(R) Index, which dropped 20.17%.
Two developments contributed significantly to the Fund's underperformance: a
legal matter and highly unusual market dynamics.
Throughout the period, Fund performance has been hampered by complications
related to the mid-September bankruptcy of the Fund's prime broker, Lehman
Brothers, Inc. A limited settlement with the bankruptcy trustee was reached in
mid-March, and thereafter the Fund resumed its long-short, quantitative
strategy. For information regarding potential pending litigation, the limited
settlement in March, and the net asset value impairment recorded in November,
please refer to the Fund prospectus and other regulatory filings.
As for the market, the freezing of credit markets, near-collapse of the
financial industry, and a shrinking economy worried investors through the first
half of the fiscal year and stocks sank to multi-year lows in early March.
Subsequently, large government relief plans, easing credit conditions, and signs
of stabilization in the economy restored some optimism, and investors drove
equities dramatically higher through the end of July.
The unprecedented volatility and macro-driven environment wreaked havoc on the
traditional correlations between the Fund's four factor groups--valuation,
earnings quality, sentiment, and capital use--which generally provide
diversification benefits. Most notably, valuation and sentiment factors behaved
in direct contrast to each other, with valuation struggling and sentiment
outperforming during the early-period drop-off, and valuation outperforming and
sentiment lagging during the late-period rally. Unfortunately for the Fund, the
underperforming factor had a larger impact in both instances. Meanwhile, the
effects of earnings quality and capital use were minimal.
Following the mid-March limited settlement, the Fund continued to lag its
primary benchmark. Investments in the Healthcare, Financials, and Energy sectors
diminished returns, while exposure in the Information Technology, Consumer
Staples, and Utilities sectors provided a relative lift.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- -------- --------
Institutional -36.73% -5.24% -4.58% $ 6,254
- --------------------------------------------------------------------------------
Class A Shares -39.89% -6.43% -5.30% $ 5,801
- --------------------------------------------------------------------------------
Class B Shares -40.51% -6.58% -5.56% $ 5,645
- --------------------------------------------------------------------------------
Class C Shares -37.34% -6.18% -5.54% $ 5,655
- --------------------------------------------------------------------------------
Russell 1000(R)
Index(1) -20.17% 0.32% -0.72% $ 9,306
- --------------------------------------------------------------------------------
S&P 500 Index(1) -19.96% -0.13% -1.20% $ 8,867
- --------------------------------------------------------------------------------
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 DIVIDENDS ON SHORT
SALES, EXTRAORDINARY EXPENSES AND INTEREST EXPENSE AS WELL AS 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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 2.07% (INSTITUTIONAL SHARES), 2.34% (CLASS A), 3.10% (CLASS B) AND
3.01% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The Fund's performance in the above table does not reflect the deduction of
taxes on Fund distributions, or redemption of shares. For the period prior to
October 29, 2001, the quoted performance of the Structured Large Cap Plus Fund
Institutional Shares reflects the performance of the Kent Growth and Income Fund
Institutional Shares with an inception date of November 2, 1992. Prior to
October 29, 2001, the quoted performance for the Class A Shares reflects
performance of the Kent Growth and Income Fund Investment Shares, with an
inception date of December 1, 1992, adjusted for maximum sales charge. The
inception date of Class B and Class C Shares is October 29, 2001. The quoted
performance of Class B and Class C Shares reflects the performance of the
Institutional Shares and is adjusted to reflect expenses and applicable sales
charges for Class B and Class C Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Exxon Mobil Corp ........................................................ 3.11%
International Business Machines Corp .................................... 2.35%
JPMorgan Chase & Co ..................................................... 1.85%
Pfizer, Inc ............................................................. 1.83%
AT&T, Inc ............................................................... 1.78%
Microsoft Corp .......................................................... 1.71%
Intel Corp .............................................................. 1.41%
United Parcel Service, Inc., Class B .................................... 1.38%
Philip Morris International, Inc ........................................ 1.36%
Chevron Corp ............................................................ 1.32%
* Long-term securities.
+ 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 CHART]
Structured Large Cap Plus
(Institutional Shares) Russell 1000(R) Index S&P 500 Index
7/31/1999 $ 10,000 $ 10,000 $ 10,000
9,682 9,634 9,678
12/99 11,018 11,181 11,118
11,132 11,670 11,371
10,801 11,269 11,068
10,594 11,349 10,961
12/00 9,778 10,311 10,104
8,614 9,015 8,906
9,061 9,584 9,427
7,776 8,124 8,043
12/01 8,525 9,027 8,903
8,539 9,094 8,928
7,394 7,870 7,732
6,052 6,539 6,396
12/02 6,499 7,072 6,935
6,271 6,864 6,717
7,146 7,945 7,751
7,303 8,183 7,956
12/03 8,195 9,186 8,925
8,397 9,361 9,076
8,476 9,493 9,232
8,284 9,321 9,059
12/04 9,067 10,234 9,896
9,037 10,039 9,683
9,135 10,245 9,816
9,376 10,649 10,170
12/05 9,583 10,875 10,383
10,065 11,364 10,820
9,883 11,175 10,664
10,476 11,740 11,268
12/06 11,181 12,557 12,023
11,300 12,709 12,100
11,866 13,458 12,859
11,699 13,725 13,121
12/07 11,440 13,282 12,683
10,091 12,022 11,485
9,859 11,795 11,172
9,106 10,692 10,237
12/08 6,328 8,288 7,991
5,116 7,422 7,111
5,826 8,646 8,244
7/31/2009 6,254 9,306 8,867
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, 2009.
21
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Equity Index Fund
(Institutional) declined 19.89% on a net of fee basis, compared to its
benchmark, the S&P 500 Index, which fell 19.96%.
The Fund generally seeks to duplicate the returns of the S&P 500 Index, but
occasionally, a modest deviation may result from an assortment of technical
factors. One area where an advantage may materialize is in the trading processes
surrounding Index membership changes. The Fund may implement transactions
earlier or later than the Index's official change date, which can generate
slightly different returns. Such strategies vary based on the broader market
environment and the makeup of the Index changes.
During the period, 40 Index changes occurred, including 16 due to merger and
acquisition activity. Other changes resulted from distress in the Financials
sector and from the relocation of corporate headquarters to foreign countries.
More broadly, equities endured excessive volatility during the period. The first
half of the period saw a dramatic sell-off as financial industry woes and a
global economic recession led to fear-driven selling. Commodity prices tumbled
and the fixed income market all but shut down as investors flocked to the
relative safety of U.S. Treasury securities. Hints of stabilization--in the
financial system, credit markets, and economy--rekindled optimism in early
March, however, and led to a broad rally through the end of the period.
Commodity prices and fixed income markets also recovered as investors reacquired
an appetite for risk.
Despite the late-period rally, all 10 economic sectors within the S&P 500 Index
posted negative returns for the 12-month period. The Financials sector, which
suffered extensively following the mid-September bankruptcy of Lehman Brothers
Holdings, Inc. and again in early 2009 amid discussions about nationalizing
banks, proved the biggest drag on Index performance. The Industrials sector,
which slumped as the world economy slowed, and the Energy sector, which saw the
price of oil fall more than $100 a barrel before recovering somewhat in 2009,
further diminished returns.
Leading performers included the traditionally defensive Consumer Staples sector,
as well as the cyclical Consumer Discretionary and Information Technology
sectors. As economic fears eased in 2009, many investors moved into Consumer
Discretionary and Information Technology stocks, which tend to outperform in the
early stages of recoveries.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------- -------- --------
Institutional -19.89% -0.26% -1.43% $ 8,663
- --------------------------------------------------------------------------------
Class A Shares -24.05% -1.51% -2.17% $ 8,027
- --------------------------------------------------------------------------------
Class B Shares -24.57% -1.63% -2.41% $ 7,836
- --------------------------------------------------------------------------------
Class C Shares -20.69% -1.25% -2.41% $ 7,839
- --------------------------------------------------------------------------------
Select Shares -19.95% -0.33% -1.50% $ 8,596
- --------------------------------------------------------------------------------
Preferred Shares -20.04% -0.42% -1.58% $ 8,530
- --------------------------------------------------------------------------------
Trust Shares -20.08% -0.51% -1.67% $ 8,451
- --------------------------------------------------------------------------------
S&P 500 Index(1) -19.96% -0.13% -1.20% $ 8,867
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.62% (INSTITUTIONAL SHARES), 0.87% (CLASS A), 0.70% (SELECT SHARES),
0.77% (PREFERRED SHARES), 0.87% (TRUST SHARES) AND 1.62% (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 B and 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, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Exxon Mobil Corp ........................................................ 3.87%
Microsoft Corp .......................................................... 2.03%
Johnson & Johnson ....................................................... 1.89%
Procter & Gamble Co. (The) .............................................. 1.82%
International Business Machines Corp .................................... 1.76%
AT&T, Inc ............................................................... 1.75%
JPMorgan Chase & Co ..................................................... 1.70%
Apple, Inc .............................................................. 1.64%
General Electric Co ..................................................... 1.60%
Chevron Corp ............................................................ 1.57%
* 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 CHART]
Equity Index (Institutional Shares) S&P 500 Index
7/31/1999 $ 10,000 $ 10,000
9,663 9,678
12/99 11,087 11,118
11,333 11,371
11,022 11,068
10,911 10,961
12/00 10,057 10,104
8,856 8,906
9,366 9,427
7,985 8,043
12/01 8,828 8,903
8,843 8,928
7,653 7,732
6,327 6,396
12/02 6,855 6,935
6,636 6,717
7,651 7,751
7,844 7,956
12/03 8,787 8,925
8,930 9,076
9,076 9,232
8,902 9,059
12/04 9,722 9,896
9,508 9,683
9,634 9,816
9,977 10,170
12/05 10,180 10,383
10,607 10,820
10,447 10,664
11,036 11,268
12/06 11,769 12,023
11,840 12,100
12,584 12,859
12,831 13,121
12/07 12,394 12,683
11,215 11,485
10,908 11,172
9,992 10,237
12/08 7,813 7,991
6,955 7,111
8,058 8,244
7/31/2009 8,663 8,867
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, 2009.
23
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third International
Equity Fund (Institutional) declined 24.36% on a net of fee basis,
underperforming its benchmark, the MSCI EAFE Index, which fell 22.60%.
International stocks experienced extreme volatility during the period, falling
hard through the first portion and recovering sharply through the second half.
Early on, financial market troubles bogged down many European markets, Asian
economies contended with reduced export activity, and emerging markets sagged
amid retreating commodity prices. Market sentiment generally turned in early
2009 as governments worldwide rolled out massive spending plans, demand for
Asian exports improved, and commodity prices recovered.
This unprecedented volatility and macro-driven environment wreaked havoc on the
traditional correlations between the Fund's four factor groups--valuation,
earnings quality, sentiment, and capital use--which generally provide
diversification benefits. Most notably, valuation and sentiment factors behaved
in direct contrast to each other, with valuation struggling and sentiment
outperforming during the early-period drop-off, and valuation outperforming and
sentiment lagging during the late-period rally. Unfortunately for the Fund, the
underperforming factor had a larger impact in both instances. Meanwhile, the
effects of earnings quality and capital use was minimal.
Other sources of underperformance included a position in Japan's Industrials
sector, which slumped dramatically in the period's first three months as export
orders dried up and a stronger yen eroded profits. Exposure in the United
Kingdom, especially an underweight position, relative to the benchmark, in the
Materials sector, also hurt as the rebound in commodity prices aided many
Materials companies.
Conversely, an overweight stake in Germany's Materials sector provided a
relative lift, along with an underweight position in the country's beleaguered
Financials sector. Investments in France's Industrials and Energy sectors
further enhanced returns, as did Fund holdings in the Healthcare and
Telecommunication Services sectors.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
-------- ------ ------- --------
Institutional -24.36% 3.54% 1.26% $ 11,337
- --------------------------------------------------------------------------------
Class A Shares -28.38% 2.21% 0.52% $ 10,537
- --------------------------------------------------------------------------------
Class B Shares -27.96% 2.25% 0.33% $ 10,335
- --------------------------------------------------------------------------------
Class C Shares -25.18% 2.50% 0.25% $ 10,257
- --------------------------------------------------------------------------------
MSCI EAFE Index(1) -22.60% 4.80% 1.75% $ 11,898
- --------------------------------------------------------------------------------
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 INTEREST EXPENSE AS
WELL AS 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
7/31/09, 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. Class B Shares were
initially offered on October 11, 2000. The performance figures for Class B
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
Shares.
TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2009*
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
iShares MSCI EAFE Index Fund ............................................ 2.50%
Telefonica SA ........................................................... 2.13%
Banco Santander SA ...................................................... 2.06%
BP PLC. ................................................................. 1.87%
Royal Dutch Shell PLC, Class A .......................................... 1.77%
AstraZeneca PLC ......................................................... 1.66%
BHP Billiton, Ltd ....................................................... 1.53%
BASF SE ................................................................. 1.51%
ENI SpA ................................................................. 1.47%
France Telecom SA ....................................................... 1.45%
* 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 CHART]
International Equity (Institutional Shares) MSCI EAFE Index
7/31/1999 $ 10,000 $ 10,000
10,117 10,141
12/99 11,912 11,843
11,630 11,830
11,238 11,382
10,496 10,462
12/00 10,215 10,165
9,060 8,772
9,011 8,680
8,093 7,465
12/01 8,386 7,985
8,516 8,026
8,406 7,856
6,897 6,306
12/02 7,232 6,712
6,628 6,161
7,695 7,348
8,258 7,946
12/03 9,638 9,303
9,791 9,706
9,934 9,727
9,791 9,700
12/04 11,176 11,186
11,051 11,168
10,926 11,055
12,155 12,202
12/05 12,737 12,700
13,898 13,893
13,779 13,991
14,234 14,540
12/06 15,577 16,045
16,291 16,699
17,674 17,769
18,209 18,156
12/07 17,878 17,838
16,470 16,249
15,662 15,883
12,245 12,618
12/08 9,820 10,100
8,272 8,692
10,321 10,903
7/31/2009 11,337 11,898
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 Morgan Stanley Capital
International (MSCI) Europe, Australasia and Far East (EAFE) Index. The
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far
East (EAFE) Index is generally representative of a sample of companies of
the market structure of 20 European and Pacific Basin countries.
The MSCI EAFE 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, 2009.
25
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Strategic Income
Fund (Institutional) gained 3.38% on a net of fee basis, lagging its benchmark,
the Barclays Capital U.S. Aggregate Bond Index, which advanced 7.85%.
Possibly the worst credit conditions since the Great Depression wreaked havoc
upon preferred stocks during the period and accounted for much of the Fund's
underperformance. In early September 2008, the federal government essentially
took over mortgage agencies Fannie Mae and Freddie Mac and stopped paying
dividends on each company's preferred stock shares. Less than two weeks later,
Wall Street icon Lehman Brothers Holdings, Inc. declared bankruptcy and debates
over the merits of nationalizing large banks followed. In turn, preferred
stocks, of which 80% are issued by financial companies, plummeted.
Lingering concerns weighed on the financial markets into the first part of 2009,
until massive amounts of government aid sparked a broad rebound through the
final few months of the fiscal year. A sharp yield curve, featuring minimal
short-term interest rates and healthier long-term yields, boosted results in the
banking industry, which profits from such spreads. Yet the ensuing lift in
preferred stocks proved too little, too late for the Fund.
The Fund's exposure to corporate bonds further limited gains as a spring rally
failed to overcome the significant losses recorded during the first half of the
period. Alternatively, exposure to Brazilian currency enhanced relative returns,
as did bond positions in Real Estate Investment Trusts. As uncertainties flooded
the commercial real estate market, these securities carried better risk-reward
profiles--and yields--than common or preferred stocks in the same companies.
Over the course of the period, the Fund remained exposed to positions that
benefited from low short-term interest rates. Yet as headwinds to the economic
recovery remained, the Fund also booked profits in riskier investments that
surged during the late-period bounce. A focus on safety took precedence,
including a diversified approach to preferred stocks, high quality corporate
bonds, and additional non-U.S. dollar investments.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
------- ------- ------- --------
Institutional 3.38% 2.02% 4.97% $ 16,239
- --------------------------------------------------------------------------------
Class A Shares -2.10% 0.72% 4.12% $ 14,980
- --------------------------------------------------------------------------------
Class B Shares -2.51% 0.70% 4.00% $ 14,803
- --------------------------------------------------------------------------------
Class C Shares 2.29% 1.01% 3.96% $ 14,748
- --------------------------------------------------------------------------------
Barclays Capital
U.S. Aggregate
Bond Index(1) 7.85% 5.14% 6.19% $ 18,237
- --------------------------------------------------------------------------------
Barclays Capital
U.S. Intermediate
Credit Bond Index(1) 7.77% 4.45% 6.04% $ 17,984
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.40% (INSTITUTIONAL SHARES), 1.65% (CLASS A) AND 2.40% (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. 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 the Fifth Third/Maxus Income Fund Investor Shares
with an inception date of March 10, 1985 and is adjusted to reflect expenses and
applicable sales charges for the respective share class.
FUND HOLDINGS AS OF JULY 31, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Preferred Stocks 39.66%
Corporate Bonds 20.69%
Foreign Bonds 7.01%
Mortgage-Backed Securities 6.25%
Investments in Affiliates 5.35%
Common Stocks 4.33%
U.S. Government Agencies 4.08%
Convertible Preferred Stock 3.89%
Investment Companies 3.85%
Asset-Backed Securities 3.23%
U.S. Treasury Obligations 1.15%
Convertible Bonds 0.51%
+ Portfolio composition is subject to change.
26
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Barclays Capital
Strategic Income U.S. Intermediate Barclays Capital U.S.
(Institutional Shares) Credit Bond Index Aggregate Bond Index
7/31/1999 $ 10,000 $ 10,000 $ 10,000
9,768 10,103 10,111
12/99 9,295 10,130 10,099
9,688 10,256 10,321
10,267 10,404 10,501
10,571 10,738 10,818
12/00 10,831 11,089 11,273
11,421 11,529 11,615
11,800 11,646 11,680
11,999 12,130 12,219
12/01 12,254 12,172 12,225
12,415 12,151 12,236
12,758 12,537 12,688
13,011 13,063 13,269
12/02 13,219 13,406 13,478
13,482 13,708 13,666
14,209 14,259 14,008
14,117 14,276 13,987
12/03 14,584 14,332 14,031
15,133 14,737 14,404
14,428 14,322 14,052
15,136 14,804 14,502
12/04 15,596 14,917 14,640
15,250 14,743 14,570
15,817 15,150 15,008
15,840 15,071 14,907
12/05 15,898 15,129 14,996
16,144 15,050 14,899
16,036 15,058 14,887
16,744 15,611 15,454
12/06 17,211 15,809 15,646
17,475 16,077 15,881
17,303 16,012 15,798
17,325 16,340 16,248
12/07 16,646 16,695 16,735
16,644 16,911 17,098
16,274 16,741 16,923
13,253 15,804 16,841
12/08 13,203 16,234 17,612
12,459 16,226 17,633
15,213 17,457 17,947
7/31/2009 16,239 17,984 18,237
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 Barclays Capital U.S.
Intermediate Credit Bond Index and the Barclays Capital U.S. Aggregate
Bond Index. The Barclays Capital U.S. Intermediate Credit Bond Index is
generally representative of investment grade corporate bonds with
maturities from one to ten years. The Barclays Capital U.S. Aggregate Bond
Index is a market value-weighted performance benchmark for
investment-grade fixed-rate taxable SEC-registered debt issues, including
government, corporate, asset-backed and mortgage-backed securities, with
maturities of at least one year.
The Barclays Capital U.S. Intermediate Credit Bond Index and the Barclays
Capital U.S. 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, 2009.
27
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL AGGRESSIVE FUND(SM)
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third LifeModel
Aggressive Fund(SM) (Institutional) declined 22.95% on a net of fee basis,
underperforming its benchmark, an unmanaged custom-blended index, created by
Fifth Third Asset Management, Inc., comprised of the Wilshire 5000 Index and the
Barclays Capital U.S. Intermediate Government/Credit Bond Index, which fell
18.03%.
Financial system turmoil and an economic slowdown weighed significantly on
equity and fixed income markets for much of the period. Broad uncertainties
prompted investors to reduce risk profiles early on--especially as challenges
seemed to compound--which led to widespread declines in stocks and non-U.S.
Treasury bonds. Government intervention and relatively better economic data
restored some measure of confidence during the final five months of the period,
which led to a renewal of risk appetites and a recovery in many stock and bond
prices, most notably among low quality holdings.
For the 12-month period, large cap growth stocks modestly outperformed all other
types of equities. Returns otherwise varied little between different size and
style classifications, although domestic stocks generally outperformed equities
from other industrialized nations around the world. In the fixed income markets,
mortgage-backed securities benefited from a strong late-period rally, while
Treasuries, which led all asset classes in 2008, lost ground through the first
seven months of 2009.
Within the Fund a slightly overweight position relative to the benchmark targets
in international stocks and an underweight stake in large cap growth equities
diminished relative returns. Alternatively, an overweight position in fixed
income investments provided a relative lift during the worst of the financial
storm.
At period-end, the market psychology had seemingly shifted away from one of pure
fear. A cautionary tone was still warranted, however, as investors going forward
will likely require proof that corporate earnings are indeed recovering and the
economy has truly turned to sustain further gains. Additionally, while deflation
may be a near-term issue, the massive financial stimulus that rescued the
markets from total collapse may very well have sowed the seeds of significant
future inflation. As such, the Fifth Third Funds portfolio managers are weighing
strategies to defend the Funds against such a risk.
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.
In particular, please see Note 3 of the Notes to Financial Statements in this
report for further details regarding Fifth Third Structured Large Cap Plus Fund,
an underlying fund 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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE(2)
--------- ------- ------ --------- ---------
Institutional 8/1/02 -22.95% 0.17% 3.77% $ 12,960
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -26.96% -1.12% 2.73% $ 12,075
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -26.87% -1.11% 2.72% $ 12,068
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -23.70% -0.84% 2.72% $ 12,068
- --------------------------------------------------------------------------------
Wilshire 5000
Index(1) -21.94% -1.26% 2.24% $ 11,995
- --------------------------------------------------------------------------------
Barclays Capital U.S.
Intermediate Government/
Credit Bond Index(1) 6.52% 4.68% 4.79% $ 13,831
- --------------------------------------------------------------------------------
LifeModel Aggressive
Target Neutral Style
Class Index Blend(1) -18.03% 2.27% 5.51% $ 14,563
- --------------------------------------------------------------------------------
LifeModel Aggressive
Target Neutral Asset
Class Index Blend(1) 7.47% 1.84% 1.49% $ 11,093
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.56% (INSTITUTIONAL SHARES), 0.81% (CLASS A), 1.56% (CLASS B) AND
1.55% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 5.0%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES REFLECT
THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0% WITHIN THE
FIRST YEAR, RESPECTIVELY.
The Fund's performance in the above table does not reflect the deduction of
taxes on Fund distributions, or redemption of shares.
FUND HOLDINGS AS OF JULY 31, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Fifth Third International Equity Fund 20.49%
Fifth Third Structured Large Cap Plus Fund 13.82%
Fifth Third Disciplined Large Cap Value Fund 12.52%
Fifth Third Quality Growth Fund 11.87%
Fifth Third All Cap Value Fund 10.47%
Fifth Third Mid Cap Growth Fund 10.19%
Fifth Third Total Return Bond Fund 6.92%
Fifth Third Small Cap Value Fund 5.16%
Fifth Third Small Cap Growth Fund 5.15%
Fifth Third Short Term Bond Fund 2.71%
Fifth Third High Yield Bond Fund 0.7%
+ 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 CHART]
Barclays Capital U.S. LifeModel Aggressive LifeModel Aggressive
Intermediate Target Neutral Target Neutral
LifeModel Aggressive Government/Credit Asset Class Style Class
(Institutional Shares) Wilshire 5000 Index Bond Index Index Blend Index Blend
8/1/2002 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
9,070 9,270 10,297 10,024 9,145
12/02 9,798 9,949 10,471 10,049 9,800
9,346 9,601 10,629 10,061 9,460
10,990 11,140 10,918 10,103 10,990
11,562 11,507 10,916 10,106 11,517
12/03 13,136 12,878 10,922 10,118 12,944
13,455 13,164 11,193 10,145 13,374
13,491 13,289 10,910 10,121 13,489
13,062 12,990 11,206 10,146 13,341
12/04 14,267 14,251 11,255 10,160 14,793
14,010 13,877 11,157 10,149 14,563
14,399 14,138 11,434 10,176 14,869
15,038 14,647 11,374 10,175 15,621
12/05 15,344 14,902 11,432 10,182 15,981
16,372 15,647 11,388 10,183 16,984
15,981 15,274 11,412 10,184 16,737
16,488 15,886 11,777 10,220 17,384
12/06 17,511 16,951 11,899 10,237 18,650
17,958 17,116 12,088 10,255 19,087
19,147 18,081 12,070 10,259 20,085
19,460 18,265 12,417 10,289 20,319
12/07 19,124 17,593 12,778 10,316 19,781
17,389 15,840 13,161 10,338 18,146
17,067 15,521 12,960 10,321 17,975
15,074 14,102 12,806 10,301 16,124
12/08 11,621 10,800 13,426 10,329 12,779
10,320 9,592 13,420 10,319 11,474
12,054 11,141 13,643 10,352 13,523
7/31/2009 12,960 11,995 13,831 11,093 14,563
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 Wilshire 5000 Index, and
the Barclays Capital U.S. Intermediate Government/Credit Bond Index. The
Wilshire 5000 Index measures the performance of all U.S. headquartered
equity securities with readily available price data. The Barclays Capital
U.S. 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 Wilshire 5000 Index and the Barclays Capital U.S. 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,
2009.
(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 Wilshire 5000 Index (90%) and the Barclays Capital
U.S. 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(R) 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(R) companies that have lower price-to-book ratios and lower
forecasted growth values.
(7) The International Index represents the MSCI EAFE Index. The MSCI EAFE
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(R) 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(R) 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(R) 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(R) companies with lower price-to-book ratios and lower forecasted
growth values.
(12) The Large Cap Core Index represents the S&P 500 Index. The S&P 500 Index
is comprised of 500 selected common stocks, most of which are listed on
the New York Stock Exchange, and is a measure of the U.S. Stock Market as
a whole.
(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 Barclays Capital U.S. Aggregate
Bond Index. The Barclays Capital U.S. Aggregate Bond Index is a market
value-weighted performance benchmark for investment-grade fixed-rate
taxable SEC-registered 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
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND(SM)
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third LifeModel
Moderately Aggressive Fund(SM) (Institutional) declined 17.50% on a net of fee
basis, underperforming its benchmark, an unmanaged custom-blended index, created
by Fifth Third Asset Management, Inc., comprised of the Wilshire 5000 Index and
the Barclays Capital U.S. Intermediate Government/Credit Bond Index, which fell
12.42%.
Financial system turmoil and an economic slowdown weighed significantly on
equity and fixed income markets for much of the period. Broad uncertainties
prompted investors to reduce risk profiles early on--especially as challenges
seemed to compound--which led to widespread declines in stocks and non-U.S.
Treasury bonds. Government intervention and relatively better economic data
restored some measure of confidence during the final five months of the period,
which led to a renewal of risk appetites and a recovery in many stock and bond
prices, most notably among low quality holdings.
For the 12-month period, large cap growth stocks modestly outperformed all other
types of equities. Returns otherwise varied little between different size and
style classifications, although domestic stocks generally outperformed equities
from other industrialized nations around the world. In the fixed income markets,
mortgage-backed securities benefited from a strong late-period rally, while
Treasuries, which led all asset classes in 2008, lost ground through the first
seven months of 2009.
Within the Fund, a slightly overweight position, relative to the benchmark
targets, in international stocks and an underweight stake in large cap growth
equities diminished relative returns. Alternatively, an overweight position in
fixed income investments provided a relative lift during the worst of the
financial storm.
At period-end, the market psychology had seemingly shifted away from one of pure
fear. A cautionary tone was still warranted, however, as investors going forward
will likely require proof that corporate earnings are indeed recovering and the
economy has truly turned to sustain further gains. Additionally, while deflation
may be a near-term issue, the massive financial stimulus that rescued the
markets from total collapse may very well have sowed the seeds of significant
future inflation. As such, the Fifth Third Funds portfolio managers are weighing
strategies to defend the Funds against such a risk.
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.
In particular, please see Note 3 of the Notes to Financial Statements in this
report for further details regarding Fifth Third Structured Large Cap Plus Fund,
an underlying fund 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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE(2)
--------- ------- ------- --------- --------
Institutional 8/1/02 -17.50% 0.86% 4.35% $ 13,474
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -21.87% -0.44% 3.33% $ 12,575
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -21.91% -0.45% 3.32% $ 12,567
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -18.28% -0.13% 3.34% $ 12,585
- --------------------------------------------------------------------------------
Wilshire 5000
Index(1) -21.94% -1.26% 2.24% $ 11,995
- --------------------------------------------------------------------------------
Barclays Capital U.S.
Intermediate Government/
Credit Bond Index(1) 6.52% 4.68% 4.79% $ 13,831
- --------------------------------------------------------------------------------
LifeModel Moderately
Aggressive Target Neutral
Style Class Index Blend(1) -12.42% 3.07% 5.61% $ 14,655
- --------------------------------------------------------------------------------
LifeModel Moderately
Aggressive Target Neutral
Asset Class Index Blend(1) 7.30% 2.48% 2.23% $ 11,670
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.54% (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, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Fifth Third Total Return Bond Fund 22.06%
Fifth Third International Equity Fund 15.45%
Fifth Third Structured Large Cap Plus Fund 10.46%
Fifth Third Disciplined Large Cap Value Fund 9.39%
Fifth Third Quality Growth Fund 9.24%
Fifth Third Short Term Bond Fund 8.31%
Fifth Third Mid Cap Growth Fund 7.34%
Fifth Third All Cap Value Fund 7.26%
Fifth Third Small Cap Value Fund 3.92%
Fifth Third Small Cap Growth Fund 3.72%
Fifth Third High Yield Bond Fund 1.93%
Fifth Third Institutional Money Market Fund 0.92%
+ Portfolio composition is subject to change.
31
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND(SM)
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Barclays Capital U.S. LifeModel Moderately LifeModel Moderately
LifeModel Moderately Intermediate Aggressive Target Aggressive Target
Aggressive Government/Credit Neutral Asset Neutral Style Class
(Institutional Shares) Wilshire 5000 Index Bond Index Class Index Blend Index Blend
8/1/2002 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
9,700 9,270 10,297 10,092 9,393
12/02 10,290 9,949 10,471 10,149 9,959
10,011 9,601 10,629 10,193 9,724
11,406 11,140 10,918 10,287 10,992
11,866 11,507 10,916 10,290 11,407
12/03 13,125 12,878 10,922 10,301 12,514
13,421 13,164 11,193 10,379 12,900
13,385 13,289 10,910 10,302 12,927
13,117 12,990 11,206 10,383 12,898
12/04 14,086 14,251 11,255 10,404 14,009
13,871 13,877 11,157 10,375 13,827
14,234 14,138 11,434 10,454 14,133
14,710 14,647 11,374 10,440 14,676
12/05 14,956 14,902 11,432 10,458 14,961
15,757 15,647 11,388 10,450 15,682
15,475 15,274 11,412 10,455 15,510
15,981 15,886 11,777 10,558 16,093
12/06 16,827 16,951 11,899 10,596 17,049
17,222 17,116 12,088 10,648 17,419
18,120 18,081 12,070 10,648 18,121
18,422 18,265 12,417 10,740 18,392
12/07 18,165 17,593 12,778 10,831 18,121
16,857 15,840 13,161 10,921 17,029
16,575 15,521 12,960 10,870 16,889
14,927 14,102 12,806 10,825 15,504
12/08 12,131 10,800 13,426 10,964 13,065
11,160 9,592 13,420 10,955 12,047
12,678 11,141 13,643 11,022 13,784
7/31/2009 13,474 11,995 13,831 11,670 14,655
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 Wilshire 5000 Index, and
the Barclays Capital U.S. Intermediate Government/Credit Bond Index. The
Wilshire 5000 Index measures the performance of all U.S. headquartered
equity securities with readily available price data. The Barclays Capital
U.S. 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 Wilshire 5000 Index and the Barclays Capital U.S. 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,
2009.
(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 Wilshire 5000 Index (70%) and the
Barclays Capital U.S. 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.
32
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(R) 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(R) companies that have lower price-to-book ratios and lower
forecasted growth values.
(7) The International Index represents the MSCI EAFE Index. The MSCI EAFE
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(R) 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(R) 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(R) 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(R) companies with lower price-to-book ratios and lower forecasted
growth values.
(12) The Large Cap Core Index represents the S&P 500 Index. The S&P 500 Index
is comprised of 500 selected common stocks, most of which are listed on
the New York Stock Exchange, and is a measure of the U.S. Stock Market as
a whole.
(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 Barclays Capital U.S. Aggregate
Bond Index. The Barclays Capital U.S. Aggregate Bond Index is a market
value-weighted performance benchmark for investment-grade fixed-rate
taxable SEC-registered 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.
33
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL
MODERATE FUND(SM)
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third LifeModel Moderate
Fund(SM) (Institutional) declined 11.88% on a net of fee basis, underperforming
its benchmark, an unmanaged custom-blended index, created by Fifth Third Asset
Management, Inc., comprised of the Wilshire 5000 Index and the Barclays Capital
U.S. Intermediate Government/Credit Bond Index, which fell 6.81%.
Financial system turmoil and an economic slowdown weighed significantly on
equity and fixed income markets for much of the period. Broad uncertainties
prompted investors to reduce risk profiles early on--especially as challenges
seemed to compound--which led to widespread declines in stocks and non-U.S.
Treasury bonds. Government intervention and relatively better economic data
restored some measure of confidence during the final five months of the period,
which led to a renewal of risk appetites and a recovery in many stock and bond
prices, most notably among low quality holdings.
For the 12-month period, mortgage-backed securities, which benefited from a
strong late-period rally, led the fixed income market. Meanwhile, Treasuries,
which outperformed all asset classes in 2008, lost ground through the first
seven months of 2009. Among stock holdings, large cap growth equities modestly
outperformed all other types of equities. Returns otherwise varied little
between different size and style classifications, although domestic stocks
generally outperformed equities from other industrialized nations around the
world.
Within the Fund, an overweight position, relative to the benchmark targets, in
equities during 2008 diminished relative returns. Fortunately, 2009 is off to a
more constructive pace and recent market conditions have allowed the Fund to
enjoy better results, both in absolute terms and relative to the benchmark.
At period-end, the market psychology had seemingly shifted away from one of pure
fear. A cautionary tone was still warranted, however, as investors going forward
will likely require proof that corporate earnings are indeed recovering and the
economy has truly turned to sustain further gains. Additionally, while deflation
may be a near-term issue, the massive financial stimulus that rescued the
markets from total collapse may very well have sowed the seeds of significant
future inflation. As such, the Fifth Third Funds portfolio managers are weighing
strategies to defend the Funds against such a risk.
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.
In particular, please see Note 3 of the Notes to Financial Statements in this
report for further details regarding Fifth Third Structured Large Cap Plus Fund,
an underlying fund 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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE(2)
---------- ------- ------ --------- --------
Institutional 8/1/02 -11.88% 1.43% 3.74% $ 12,929
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -16.48% 0.14% 2.72% $ 12,070
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -16.69% 0.12% 2.72% $ 12,066
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -12.77% 0.41% 2.71% $ 12,060
- --------------------------------------------------------------------------------
Wilshire 5000
Index(1) -21.94% -1.26% 2.24% $ 11,995
- --------------------------------------------------------------------------------
Barclays Capital U.S.
Intermediate Government/
Credit Bond Index(1) 6.52% 4.68% 4.79% $ 13,831
- --------------------------------------------------------------------------------
LifeModel Moderate
Target Neutral Style
Class Index Blend(1) -6.81% 3.74% 5.58% $14,630
- --------------------------------------------------------------------------------
LifeModel Moderate
Target Neutral Asset
Class Index Blend(1) 7.11% 3.11% 2.96% $ 12,270
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.44% (INSTITUTIONAL SHARES), 0.69% (CLASS A) AND 1.44% (CLASSES B &
C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A SALES CHARGE OF
0.0%. THE TOTAL RETURN FIGURES FOR A SHARES 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, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Fifth Third Total Return Bond Fund 37.43%
Fifth Third Short Term Bond Fund 14.22%
Fifth Third International Equity Fund 10.94%
Fifth Third Quality Growth Fund 6.54%
Fifth Third Structured Large Cap Plus Fund 6.35%
Fifth Third Disciplined Large Cap Value Fund 6.34%
Fifth Third Mid Cap Growth Fund 5.06%
Fifth Third All Cap Value Fund 4.35%
Fifth Third High Yield Bond Fund 3.05%
Fifth Third Small Cap Value Fund 2.7%
Fifth Third Small Cap Growth Fund 2.4%
Fifth Third Institutional Money Market Fund 0.62%
+ Portfolio composition is subject to change.
34
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL
MODERATE FUND(SM)
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Barclays Capital U.S.
Intermediate LifeModel Moderate LifeModel Moderate
LifeModel Moderate Government/Credit Target Neutral Asset Target Neutral Style
(Institutional Shares) Wilshire 5000 Index Bond Index Class Index Blend Class Index Blend
8/1/2002 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
9,594 9,270 10,297 10,160 9,643
12/02 10,053 9,949 10,471 10,250 10,110
9,894 9,601 10,629 10,326 9,983
10,944 11,140 10,918 10,474 10,978
11,269 11,507 10,916 10,476 11,280
12/03 12,129 12,878 10,922 10,486 12,075
12,449 13,164 11,193 10,617 12,419
12,367 13,289 10,910 10,484 12,365
12,220 12,990 11,206 10,624 12,443
12/04 12,892 14,251 11,255 10,652 13,237
12,736 13,877 11,157 10,604 13,098
13,045 14,138 11,434 10,737 13,401
13,354 14,647 11,374 10,711 13,754
12/05 13,547 14,902 11,432 10,740 13,969
14,078 15,647 11,388 10,722 14,441
13,876 15,274 11,412 10,732 14,334
14,334 15,886 11,777 10,905 14,857
12/06 14,948 16,951 11,899 10,965 15,542
15,265 17,116 12,088 11,053 15,852
15,845 18,081 12,070 11,049 16,300
16,123 18,265 12,417 11,208 16,597
12/07 15,971 17,593 12,778 11,369 16,546
15,117 15,840 13,161 11,533 15,925
14,903 15,521 12,960 11,445 15,805
13,669 14,102 12,806 11,372 14,842
12/08 11,698 10,800 13,426 11,633 13,272
11,122 9,592 13,420 11,625 12,555
12,312 11,141 13,643 11,732 13,939
7/31/2009 12,929 11,995 13,831 12,270 14,630
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 Wilshire 5000 Index, and
the Barclays Capital U.S. Intermediate Government/Credit Bond Index. The
Wilshire 5000 Index measures the performance of all U.S. headquartered
equity securities with readily available price data. The Barclays Capital
U.S. 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 Wilshire 5000 Index and the Barclays Capital U.S. 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,
2009.
(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 Wilshire 5000 Index (50%) and the Barclays Capital
U.S. 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.
35
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(R) 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(R) companies that have lower price-to-book ratios and lower
forecasted growth values.
(7) The International Index represents the MSCI EAFE Index. The MSCI EAFE
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(R) 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(R) 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(R) 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(R) companies with lower price-to-book ratios and lower forecasted
growth values.
(12) The Large Cap Core Index represents the S&P 500 Index. The S&P 500 Index
is comprised of 500 selected common stocks, most of which are listed on
the New York Stock Exchange, and is a measure of the U.S. Stock Market as
a whole.
(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 Barclays Capital U.S. Aggregate
Bond Index. The Barclays Capital U.S. Aggregate Bond Index is a market
value-weighted performance benchmark for investment-grade fixed-rate
taxable SEC-registered 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.
36
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL
MODERATELY CONSERVATIVE FUND(SM)
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third LifeModel
Moderately Conservative Fund(SM) (Institutional) declined 9.12% on a net of fee
basis, while its benchmark, an unmanaged custom-blended index, created by Fifth
Third Asset Management, Inc., comprised of the Wilshire 5000 Index and the
Barclays Capital U.S. Intermediate Government/ Credit Bond Index, which fell
4.01%.
Financial system turmoil and an economic slowdown weighed significantly on fixed
income and equity markets for much of the period. Broad uncertainties prompted
investors to reduce risk profiles early on--especially as challenges seemed to
compound--which led to widespread declines in non-U.S. Treasury bonds and
stocks. Government intervention and relatively better economic data restored
some measure of confidence during the final five months of the period, which led
to a renewal of risk appetites and a recovery in many bond and stock bond
prices, most notably among low quality holdings.
For the 12-month period, mortgage-backed securities, which benefited from a
strong late-period rally, led the fixed income market. Meanwhile, Treasuries,
which outperformed all asset classes in 2008, lost ground through the first
seven months of 2009. Among stock holdings, large cap growth equities modestly
outperformed all other types of equities. Returns otherwise varied little
between different size and style classifications, although domestic stocks
generally outperformed equities from other industrialized nations around the
world.
Within the Fund, an overweight position, relative to the benchmark targets, in
equities in the fall of 2008 diminished relative returns. A modest
representation in Treasury securities also contributed to the lagging results.
Fortunately, recent market conditions have allowed the Fund to enjoy better
results, both in absolute terms and relative to the benchmark.
At period-end the market psychology had seemingly shifted away from one of pure
fear. A cautionary tone was still warranted, however, as investors going forward
likely will require proof that corporate earnings are indeed recovering and the
economy has truly turned to sustain further gains. Additionally, while deflation
may be a near-term issue, the massive financial stimulus that rescued the
markets from total collapse may very well have sowed the seeds of significant
future inflation. As such, the Fifth Third Funds portfolio managers are weighing
strategies to defend the Funds against such a risk.
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.
In particular, please see Note 3 of the Notes to Financial Statements in this
report for further details regarding Fifth Third Structured Large Cap Plus Fund,
an underlying fund 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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE(2)
--------- -------- ------ --------- --------
Institutional 8/1/02 -9.12% 1.65% 3.32% $ 12,572
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -13.86% 0.34% 2.29% $ 11,721
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -14.07% 0.33% 2.29% $ 11,720
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -10.00% 0.64% 2.30% $ 11,724
- --------------------------------------------------------------------------------
Wilshire 5000
Index(1) -21.94% -1.26% 2.24% $ 11,995
- --------------------------------------------------------------------------------
Barclays Capital U.S.
Intermediate Government/
Credit Bond Index(1) 6.52% 4.68% 4.79% $ 13,831
- --------------------------------------------------------------------------------
LifeModel Moderately
Conservative Target
Neutral Style Class
Index Blend(1) -4.01% 4.04% 5.53% $ 14,576
- --------------------------------------------------------------------------------
LifeModel Moderately
Conservative Target
Neutral Asset Class
Index Blend(1) 7.01% 3.43% 3.33% $ 12,579
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.59% (INSTITUTIONAL SHARES), 0.84% (CLASS A) AND 1.59% (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, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Fifth Third Total Return Bond Fund 40.12%
Fifth Third Short Term Bond Fund 15.34%
Fifth Third International Equity Fund 8.45%
Fifth Third Structured Large Cap Plus Fund 6.7%
Fifth Third Mid Cap Growth Fund 5.06%
Fifth Third Quality Growth Fund 4.52%
Fifth Third All Cap Value Fund 4.35%
Fifth Third High Yield Bond Fund 4.22%
Fifth Third Disciplined Large Cap Value Fund 4.21%
Fifth Third Small Cap Value Fund 2.8%
Fifth Third Small Cap Growth Fund 2.55%
Fifth Third Institutional Money Market Fund 1.68%
+ Portfolio composition is subject to change.
37
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL
MODERATELY CONSERVATIVE FUND(SM)
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Barclays Capital U.S. LifeModel Moderately LifeModel Moderately
LifeModel Moderately Intermediate Conservative Conservative
Conservative Government/Credit Target Neutral Asset Target Neutral Style
(Institutional Shares) Wilshire 5000 Index Bond Index Class Index Blend Class Index Blend
8/1/2002 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
9,517 9,270 10,297 10,194 9,768
12/02 9,958 9,949 10,471 10,301 10,182
9,844 9,601 10,629 10,392 10,110
10,726 11,140 10,918 10,568 10,965
10,988 11,507 10,916 10,570 11,210
12/03 11,674 12,878 10,922 10,579 11,853
11,925 13,164 11,193 10,737 12,177
11,817 13,289 10,910 10,576 12,085
11,751 12,990 11,206 10,746 12,213
12/04 12,291 14,251 11,255 10,778 12,857
12,158 13,877 11,157 10,720 12,737
12,437 14,138 11,434 10,880 13,039
12,673 14,647 11,374 10,848 13,304
12/05 12,822 14,902 11,432 10,883 13,487
13,217 15,647 11,388 10,860 13,846
13,073 15,274 11,412 10,873 13,767
13,507 15,886 11,777 11,082 14,262
12/06 14,009 16,951 11,899 11,154 14,825
14,294 17,116 12,088 11,261 15,108
14,725 18,081 12,070 11,254 15,444
14,982 18,265 12,417 11,448 15,750
12/07 14,856 17,593 12,778 11,646 15,793
14,207 15,840 13,161 11,851 15,381
14,048 15,521 12,960 11,742 15,269
13,020 14,102 12,806 11,655 14,500
12/08 11,361 10,800 13,426 11,982 13,346
10,927 9,592 13,420 11,974 12,784
12,000 11,141 13,643 12,101 13,979
7/31/2009 12,572 11,995 13,831 12,579 14,576
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 Wilshire 5000 Index, and
the Barclays Capital U.S. Intermediate Government/Credit Bond Index. The
Wilshire 5000 Index measures the performance of all U.S. headquartered
equity securities with readily available price data. The Barclays Capital
U.S. 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 Wilshire 5000 Index and the Barclays Capital U.S. 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,
2009.
(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 Wilshire 5000 Index (40%) and the
Barclays Capital U.S. 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.
38
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(R) 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(R) companies that have lower price-to-book ratios and lower
forecasted growth values.
(7) The International Index represents the MSCI EAFE Index. The MSCI EAFE
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(R) 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(R) 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(R) 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(R) companies with lower price-to-book ratios and lower forecasted
growth values.
(12) The Large Cap Core Index represents the S&P 500 Index. The S&P 500 Index
is comprised of 500 selected common stocks, most of which are listed on
the New York Stock Exchange, and is a measure of the U.S. Stock Market as
a whole.
(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 Barclays Capital U.S. Aggregate
Bond Index. The Barclays Capital U.S. Aggregate Bond Index is a market
value-weighted performance benchmark for investment-grade fixed-rate
taxable SEC-registered 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.
39
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL
CONSERVATIVE FUND(SM)
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third LifeModel
Conservative Fund(SM) (Institutional) declined 4.64% on a net of fee basis,
underperforming its benchmark, an unmanaged custom-blended index, created by
Fifth Third Asset Management, Inc., comprised of the Wilshire 5000 Index and the
Barclays Capital U.S. Intermediate Government/ Credit Bond Index, which gained
1.55%.
Financial system turmoil and an economic slowdown weighed significantly on fixed
income and equity markets for much of the period. Broad uncertainties prompted
investors to reduce risk profiles early on--especially as challenges seemed to
compound--which led to widespread declines in non-U.S. Treasury bonds and
stocks. Government intervention and relatively better economic data restored
some measure of confidence during the final five months of the period, which led
to a renewal of risk appetites and a recovery in many bond and stock bond
prices, most notably among low quality holdings.
For the 12-month period, mortgage-backed securities, which benefited from a
strong late-period rally, led the fixed income market. Meanwhile, Treasuries,
which outperformed all asset classes in 2008, lost ground through the first
seven months of 2009. Among stock holdings, large cap growth equities modestly
outperformed all other types of equities. Returns otherwise varied little
between different size and style classifications, although domestic stocks
generally outperformed equities from other industrialized nations around the
world.
Within the Fund, a modestly overweight exposure, relative to the benchmark
targets, to equities during 2008 diminished relative returns. Fortunately, 2009
is off to a more constructive pace and recent market conditions have allowed the
Fund to enjoy better results, both in absolute terms and relative to the
benchmark.
At period-end, the market psychology had seemingly shifted away from one of pure
fear. A cautionary tone was still warranted, however, as investors going forward
will likely require proof that corporate earnings are indeed recovering and the
economy has truly turned to sustain further gains. Additionally, while deflation
may be a near-term issue, the massive financial stimulus that rescued the
markets from total collapse may very well have sowed the seeds of significant
future inflation. As such, the Fifth Third Funds portfolio managers are weighing
strategies to defend the Funds against such a risk.
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.
In particular, please see Note 3 of the Notes to Financial Statements in this
report for further details regarding Fifth Third Structured Large Cap Plus Fund,
an underlying fund 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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR 5 YEAR INCEPTION VALUE(2)
--------- ------- ------ --------- --------
Institutional 8/1/02 -4.64% 1.77% 3.10% $ 12,382
- --------------------------------------------------------------------------------
Class A Shares 8/1/02 -9.53% 0.50% 2.09% $ 11,562
- --------------------------------------------------------------------------------
Class B Shares 8/1/02 -9.87% 0.46% 2.09% $ 11,559
- --------------------------------------------------------------------------------
Class C Shares 8/1/02 -5.45% 0.78% 2.09% $ 11,558
- --------------------------------------------------------------------------------
Wilshire 5000
Index(1) -21.94% -1.26% 2.24% $ 11,995
- --------------------------------------------------------------------------------
Barclays Capital U.S.
Intermediate Government/
Credit Bond Index(1) 6.52% 4.68% 4.79% $ 13,831
- --------------------------------------------------------------------------------
LifeModel Conservative
Target Neutral Style
Class Index Blend(1) 1.55% 4.54% 5.32% $ 14,380
- --------------------------------------------------------------------------------
LifeModel Conservative
Target Neutral Asset
Class Index Blend(1) 6.78% 4.06% 4.06% $ 13,215
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.65% (INSTITUTIONAL SHARES), 0.90% (CLASS A) AND 1.65% (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, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Fifth Third Total Return Bond Fund 58.28%
Fifth Third Short Term Bond Fund 20.46%
Fifth Third High Yield Bond Fund 4.86%
Fifth Third International Equity Fund 3.8%
Fifth Third Structured Large Cap Plus Fund 3.03%
Fifth Third All Cap Value Fund 1.9%
Fifth Third Disciplined Large Cap Value Fund 1.9%
Fifth Third Quality Growth Fund 1.86%
Fifth Third Mid Cap Growth Fund 1.8%
Fifth Third Small Cap Value Fund 1.02%
Fifth Third Small Cap Growth Fund 0.91%
Fifth Third Institutional Money Market Fund 0.18%
+ Portfolio composition is subject to change.
40
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
FIFTH THIRD LIFEMODEL
CONSERVATIVE FUND(SM)
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Barclays Capital U.S.
Intermediate LifeModel Conservative LifeModel Conservative
LifeModel Conservative Government/Credit Target Neutral Asset Target Neutral Style
(Institutional Shares) Wilshire 5000 Index Bond Index Class Index Blend Class Index Blend
8/1/2002 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
9,909 9,270 10,297 10,262 10,019
12/02 10,233 9,949 10,471 10,403 10,320
10,245 9,601 10,629 10,527 10,362
10,840 11,140 10,918 10,759 10,928
10,996 11,507 10,916 10,759 11,058
12/03 11,383 12,878 10,922 10,767 11,405
11,609 13,164 11,193 10,981 11,689
11,450 13,289 10,910 10,760 11,527
11,500 12,990 11,206 10,992 11,746
12/04 11,819 14,251 11,255 11,032 12,108
11,714 13,877 11,157 10,954 12,024
11,979 14,138 11,434 11,171 12,320
12,086 14,647 11,374 11,126 12,420
12/05 12,194 14,902 11,432 11,172 12,545
12,414 15,647 11,388 11,139 12,699
12,345 15,274 11,412 11,157 12,670
12,737 15,886 11,777 11,442 13,112
12/06 13,074 16,951 11,899 11,538 13,457
13,305 17,116 12,088 11,685 13,690
13,528 18,081 12,070 11,674 13,830
13,756 18,265 12,417 11,942 14,148
12/07 13,696 17,593 12,778 12,219 14,351
13,339 15,840 13,161 12,510 14,308
13,195 15,521 12,960 12,357 14,204
12,433 14,102 12,806 12,238 13,791
12/08 11,318 10,800 13,426 12,706 13,433
11,185 9,592 13,420 12,699 13,182
11,972 11,141 13,643 12,872 13,975
7/31/2009 12,382 11,995 13,831 13,215 14,380
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 Wilshire 5000 Index, and
the Barclays Capital U.S. Intermediate Government/Credit Bond Index. The
Wilshire 5000 Index measures the performance of all U.S. headquartered
equity securities with readily available price data. The Barclays Capital
U.S. 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 Wilshire 5000 Index and the Barclays Capital U.S. 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,
2009.
(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 Wilshire 5000 Index (20%) and the Barclays Capital
U.S. 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.
41
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(R) 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(R) companies that have lower price-to-book ratios and lower
forecasted growth values.
(7) The International Index represents the MSCI EAFE Index. The MSCI EAFE
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(R) 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(R) 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(R) 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(R) companies with lower price-to-book ratios and lower forecasted
growth values.
(12) The Large Cap Core Index represents the S&P 500 Index. The S&P 500 Index
is comprised of 500 selected common stocks, most of which are listed on
the New York Stock Exchange, and is a measure of the U.S. Stock Market as
a whole.
(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 Barclays Capital U.S. Aggregate
Bond Index. The Barclays Capital U.S. Aggregate Bond Index is a market
value-weighted performance benchmark for investment-grade fixed-rate
taxable SEC-registered 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)
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third High Yield Bond
Fund (Institutional) advanced 5.98% on a net of fee basis, outperforming its
benchmark, the Merrill Lynch High Yield Master Index, which gained 3.80%.
Following a terrible 2008, in which fixed income investors generally preferred
the perceived safety of U.S. Treasury issues, the high yield bond market staged
an impressive rally through the first seven months of 2009. In a virtual
reversal of last year's results, lower quality, high beta bonds, which suffered
immensely in 2008, fueled the surge through the first part of 2009. Signs of
improvement on the economic front bolstered bonds from cyclical groups and the
automotive industry, while issues from banks and other financial service outfits
benefited from the stabilization of the global financial markets.
Holding a high quality bias, the Fund generally avoided low quality issues and
returns suffered from its overweight allocations, relative to the benchmark, in
historically defensive sectors such as Utilities, Healthcare, and Energy. Yet
the underperformance was more than offset by solid security selection within
each sector, as well as effective investments in the cable television industry.
Furthermore, the Fund's stakes in automotive finance companies, which carried
relatively healthier balance sheets than the manufacturers, proved beneficial.
At period-end, the Fund maintained overweight positions in the Utilities,
Energy, and Healthcare sectors, and underweight stakes in retailers, the gaming
industry, and the Financials sector. While conditions have improved at many
banks and thrifts, uncertainty prompted the extended caution.
To succeed, the high yield bond market requires reliable access to capital,
which has begun to recover over the past six months. Looking ahead, however,
follow-through on the economic recovery is essential to support additional
gains, and consumers' scaled-back spending habits could undermine rising
expectations. Regardless, the Fund continues to seek attractive long-term,
risk-adjusted returns with lower volatility than the broader market by remaining
focused on higher quality high yield bonds.
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, 2009
- --------------------------------------------------------------------------------
INCEPTION SINCE ENDING
DATE 1 YEAR INCEPTION VALUE(2)
--------- ------- --------- --------
Institutional 11/29/05 5.98% 4.46% $ 11,737
- --------------------------------------------------------------------------------
Class A Shares 11/29/05 0.63% 2.70% $ 11,028
- --------------------------------------------------------------------------------
Class B Shares 11/29/05 0.12% 2.75% $ 11,049
- --------------------------------------------------------------------------------
Class C Shares 11/29/05 4.93% 3.42% $ 11,314
- --------------------------------------------------------------------------------
Merrill Lynch High
Yield Master Index(1) 3.80% 4.16% $ 11,204
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 1.19% (INSTITUTIONAL SHARES), 1.38% (CLASS A), 2.20% (CLASS B) AND
2.19% (CLASS C). THE TOTAL RETURN FIGURES FOR INSTITUTIONAL SHARES REFLECT A
SALES CHARGE OF 0.0%. THE TOTAL RETURN FIGURES FOR A SHARES REFLECT THE MAXIMUM
SALES CHARGE OF 4.75%. THE TOTAL RETURN FIGURES FOR B SHARES AND C SHARES
REFLECT THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 5.0% AND 1.0%
WITHIN THE FIRST YEAR, RESPECTIVELY.
The quoted performance does not reflect the deduction of taxes on Fund
distributions or redemption of shares.
FUND HOLDINGS AS OF JULY 31, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
Corporate Bonds 85.21%
Foreign Bonds 14.15%
Investments in Affiliates 0.46%
Preferred Stocks 0.18%
+ Portfolio composition is subject to change.
44
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
High Yield Bond Merrill Lynch High
(Institutional Shares) Yield Master Index
11/29/2005 $ 10,000 $ 10,000
12/05 10,002 10,092
10,231 10,380
6/06 10,094 10,396
10,420 10,817
12/06 10,817 11,267
11,096 11,569
6/07 11,100 11,605
11,209 11,645
12/07 11,165 11,512
10,934 11,169
6/08 11,216 10,968
10,465 9,928
12/08 8,496 8,194
9,042 8,625
6/09 11,097 10,570
7/31/2009 11,737 11,204
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,
2009.
45
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Total Return Bond
Fund (Institutional) slipped 0.71% on a net of fee basis, underperforming its
benchmark, the Barclays Capital U.S. Aggregate Bond Index, which advanced 7.85%.
In the midst of perhaps the worst economy since the Great Depression, the fixed
income market essentially shut down during the first half of the period. A
modest relief rally in January and February gave way to concerns over the
potential nationalization of the banking system, which led to further setbacks
in March and April. A collection of government relief plans soothed investors
through the final three months of the fiscal year and helped provide much-needed
liquidity to the market.
The Fund benefited greatly from the government's late-period efforts, but the
gains fell just short of fully offsetting earlier losses in many structured
holdings. For example, the Fund held an overweight stake, relative to the
benchmark, in non-Government Agency mortgage-backed securities (MBS), which
plummeted due to diminished trade volumes, tighter regulatory capital
requirements, and a still-deteriorating real estate market. Late in the period,
the government announced the Public-Private Investment Program, which helped
restore a market for toxic assets, including some non-Government Agency MBS.
Similarly, the creation of the Term Asset-Backed Securities Loan Facility (TALF)
midway through the fiscal year aided the commercial mortgage-backed securities
(CMBS) market and portions of the asset-backed securities (ABS) market. Both
types of securities detracted from performance, although when TALF revived the
market for such securities, the Fund exited fundamentally weak CMBS and ABS
holdings at beneficial prices.
Positive contributions to returns came from an underweight position in corporate
bonds, which underperformed the benchmark, and investments in Brazilian and
Australian currencies, as well as select Brazilian bonds.
At period-end, the Fund's focus was on Agency MBS, which benefited from the
government's explicit backing; mature CMBS, which were originated and
underwritten based on tighter lending standards; and high quality corporate
debentures. The Fund also maintained a shorter duration than the benchmark in
anticipation of higher interest rates at some point in the future.
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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
------ ------ ------- --------
Institutional -0.71% 1.54% 3.93% $ 14,698
- --------------------------------------------------------------------------------
Class A Shares -5.66% 0.31% 3.17% $ 13,664
- --------------------------------------------------------------------------------
Class B Shares -6.27% 0.22% 2.90% $ 13,307
- --------------------------------------------------------------------------------
Class C Shares -1.71% 0.54% 2.89% $ 13,299
- --------------------------------------------------------------------------------
Barclays Capital
U.S. Aggregate
Bond Index(1) 7.85% 5.14% 6.19% $ 18,237
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.84% (INSTITUTIONAL SHARES), 1.09 % (CLASS A) AND 1.84% (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, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
U.S. Government Agencies 41.89%
Mortgage-Backed Securities 26.96%
Corporate Bonds 16.94%
Asset-Backed Securities 6.33%
Foreign Bonds 2.72%
Investments in Affiliates 2.47%
U.S. Treasury Obligations 1.28%
Preferred Stocks 1.21%
Demand Notes 0.2%
+ Portfolio composition is subject to change.
46
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Total Return Bond Barclays Capital U.S.
(Institutional Shares) Aggregate Bond Index
7/31/1999 $ 10,000 $ 10,000
10,054 10,111
12/99 9,979 10,099
10,284 10,321
10,343 10,501
10,675 10,818
12/00 11,168 11,273
11,540 11,615
11,557 11,680
12,163 12,219
12/01 11,977 12,225
11,855 12,236
12,359 12,688
12,944 13,269
12/02 13,106 13,478
13,277 13,666
13,541 14,008
13,499 13,987
12/03 13,525 14,031
13,850 14,404
13,494 14,052
13,899 14,502
12/04 14,023 14,640
13,982 14,570
14,368 15,008
14,253 14,907
12/05 14,319 14,996
14,233 14,899
14,198 14,887
14,722 15,454
12/06 14,885 15,646
15,102 15,881
14,989 15,798
15,254 16,248
12/07 15,542 16,735
15,413 17,098
15,142 16,923
14,365 16,841
12/08 13,614 17,612
13,681 17,633
14,291 17,947
7/31/2009 14,698 18,237
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 Barclays Capital U.S.
Aggregate Bond Index. The Barclays Capital U.S. Aggregate Bond Index is a
market value-weighted performance benchmark for investment-grade
fixed-rate taxable SEC-registered debt issues, including government,
corporate, asset-backed, and mortgage-backed securities, with maturities
of at least one year.
The Barclays Capital U.S. 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, 2009.
47
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
For the 12-month period ended July 31, 2009, the Fifth Third Short Term Bond
Fund (Institutional) advanced 4.30% on a net of fee basis, compared to its
benchmarks, the Merrill Lynch 1-3 Year Government/Corporate Bond Index which
gained 4.74%.
The fiscal year was essentially split into two periods. From August 2008 through
January 2009, investors surveyed the staggered credit markets and weakening
economy and flocked to the perceived safety of U.S. Treasury securities. Demand
for such issues ran so high that yields on short-term Treasuries briefly turned
negative. Conversely, prices on residential mortgage-backed securities (RMBS),
commercial mortgage-backed securities (CMBS), and asset-backed securities (ABS)
plummeted. Meanwhile, the Federal Reserve lowered the Federal Funds target rate
from 2.00% to a range between 0.00% and 0.25%.
In January, the tide turned as Treasury prices started falling. By March, the
government added a significant amount of support to the structured bond market
via an assortment of relief programs. In turn, many RMBS, CMBS, and ABS soared
through the end of July.
The Fund's holdings benefited from the government's efforts, but the gains fell
short of fully offsetting earlier losses in many structured holdings. For
example, the creation of the Term Asset-Backed Securities Loan Facility midway
through the fiscal year aided the CMBS market and portions of the ABS market.
Although both types of securities ultimately detracted from performance, the
Fund's exposure in both areas was further bolstered by solid underlying
fundamentals.
Among corporate bonds, the Fund's underweight position, relative to the
benchmark, in lower quality BBB-rate securities also hampered performance as the
high yield market took off during 2009. Seeing some value in the corporate
space, however, the Fund selectively added to its investments in the banking
industry and acquired some new issues, which generally performed better than
bonds in the secondary 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, 2009
- --------------------------------------------------------------------------------
ENDING
1 YEAR 5 YEAR 10 YEAR VALUE(2)
------ ------ ------- --------
Institutional 4.30% 3.43% 4.13% $ 14,992
- --------------------------------------------------------------------------------
Class A Shares 0.26% 2.43% 3.55% $ 14,176
- --------------------------------------------------------------------------------
Class C Shares 3.21% 2.40% 3.09% $ 13,562
- --------------------------------------------------------------------------------
Merrill Lynch 1-3
Year Government/
Corporate
Bond Index(1) 4.74% 4.15% 4.82% $ 16,015
- --------------------------------------------------------------------------------
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 7/31/09, THE GROSS EXPENSE
RATIOS ARE 0.78% (INSTITUTIONAL SHARES), 1.03% (CLASS A) AND 1.78% (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, 2009
- --------------------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS+
[BAR CHART]
U.S. Government Agencies 41.34%
Corporate Bonds 22.51%
Mortgage-Backed Securities 18.35%
Asset-Backed Securities 10.88%
Investments in Affiliates 3.46%
Foreign Bonds 2.11%
U.S. Treasury Obligations 1.23%
Municipal Bonds 0.12%
+ Portfolio composition is subject to change.
48
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (Unaudited)
SHORT TERM BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[LINE CHART]
Short Term Bond Merrill Lynch 1-3 Year
(Institutional Shares) Government/Corporate Bond Index
7/31/1999 $ 10,000 $ 10,000
10,088 10,094
12/99 10,135 10,164
10,251 10,290
10,420 10,463
10,670 10,699
12/00 10,958 10,984
11,268 11,303
11,393 11,449
11,756 11,847
12/01 11,823 11,940
11,771 11,942
12,015 12,230
12,261 12,519
12/02 12,395 12,668
12,499 12,778
12,595 12,919
12,647 12,982
12/03 12,646 13,016
12,758 13,161
12,621 13,013
12,730 13,161
12/04 12,740 13,173
12,707 13,137
12,854 13,298
12,874 13,315
12/05 12,951 13,404
13,009 13,468
13,090 13,557
13,344 13,833
12/06 13,479 13,974
13,670 14,176
13,757 14,278
13,994 14,619
12/07 14,231 14,934
14,376 15,331
14,413 15,247
14,306 15,275
12/08 14,016 15,635
14,255 15,697
14,818 15,945
7/31/2009 14,992 16,015
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, 2009.
49
This page intentionally left blank.
50
SMALL CAP GROWTH
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (94.0%)
AEROSPACE & DEFENSE (2.8%)
Axsys Technologies, Inc. * 12,900 $ 692,343
HEICO Corp. 19,000 701,670
------------
1,394,013
------------
BIOTECHNOLOGY (1.5%)
United Therapeutics Corp. * 8,275 766,430
------------
CAPITAL MARKETS (4.0%)
Ares Capital Corp. 92,000 830,760
BGC Partners, Inc., Class A 100,703 460,213
Stifel Financial Corp. * 15,000 748,950
------------
2,039,923
------------
CHEMICALS (1.0%)
Innophos Holdings, Inc. 27,114 509,201
------------
COMMERCIAL SERVICES & SUPPLIES (1.3%)
Geo Group, Inc. (The) * 36,612 658,284
------------
COMMUNICATIONS EQUIPMENT (6.4%)
Ciena Corp. * 61,450 685,782
Harmonic, Inc. * 92,228 639,140
Neutral Tandem, Inc. * 23,950 742,450
Nice Systems, Ltd. ADR * 13,783 377,379
Polycom, Inc. * 17,647 419,116
Riverbed Technology, Inc. * 19,800 396,198
------------
3,260,065
------------
CONSUMER FINANCE (3.3%)
Cardronics, Inc. * 240,000 1,010,400
Cash America International, Inc. 24,118 644,674
------------
1,655,074
------------
CONTAINERS & PACKAGING (2.4%)
Rock-Tenn Co., Class A 27,100 1,218,416
------------
DIVERSIFIED CONSUMER SERVICES (1.6%)
American Public Education, Inc. * 22,500 795,825
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.8%)
Cbeyond, Inc. * 26,000 364,520
TW Telecom, Inc. * 55,598 550,420
------------
914,940
------------
ELECTRICAL COMPONENTS & EQUIPMENT (4.7%)
AZZ, Inc. * 20,350 788,562
Belden, Inc. 24,401 427,994
Polypore International, Inc. * 93,850 1,159,048
------------
2,375,604
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%)
IPG Photonics Corp. * 44,450 476,948
Plexus Corp. * 19,250 494,532
------------
971,480
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ENERGY EQUIPMENT & SERVICES (2.1%)
Core Laboratories NV 5,000 $ 429,800
Willbros Group, Inc. * 46,100 635,719
------------
1,065,519
------------
FOOD PRODUCTS (1.2%)
Flowers Foods, Inc. 26,450 625,014
------------
HEALTHCARE EQUIPMENT & SUPPLIES (3.7%)
Neogen Corp. * 25,800 751,812
NuVasive, Inc. * 26,444 1,094,517
------------
1,846,329
------------
HEALTHCARE PROVIDERS & SERVICES (10.0%)
Amedisys, Inc. * 18,600 831,606
Emergency Medical Services Corp.,
Class A * 23,308 912,275
Genoptix, Inc. * 41,350 1,294,668
HMS Holdings Corp. * 14,194 545,050
Psychiatric Solutions, Inc. * 31,594 853,670
Sun Healthcare Group, Inc. * 65,485 637,169
------------
5,074,438
------------
HEALTHCARE TECHNOLOGY (1.6%)
Phase Forward, Inc. * 56,105 796,691
------------
HOTELS RESTAURANTS & LEISURE (1.7%)
Bally Technologies, Inc. * 24,400 883,524
------------
INTERNET SOFTWARE & SERVICES (4.0%)
Art Technology Group, Inc. * 171,700 650,743
DealerTrack Holdings, Inc. * 37,000 733,710
Perficient, Inc. * 86,350 637,263
------------
2,021,716
------------
IT SERVICES (3.6%)
ExlService Holdings, Inc. * 33,000 428,340
Forrester Research, Inc. * 28,490 643,019
Mantech International Corp.,
Class A * 14,450 770,185
------------
1,841,544
------------
LIFE SCIENCES TOOLS & SERVICES (3.4%)
ICON PLC ADR * 44,970 1,056,795
Luminex Corp. * 36,550 645,839
------------
1,702,634
------------
MACHINERY (0.6%)
Titan Machinery, Inc. * 22,500 279,675
------------
MEDIA (2.8%)
Dolan Media Co. * 57,323 781,312
RRSat Global Communications
Network, Ltd. 58,300 660,539
------------
1,441,851
------------
Continued
51
SMALL CAP GROWTH
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
NETWORKING PRODUCTS (0.1%)
LogMeln, Inc. * 3,418 $ 66,685
------------
PROFESSIONAL SERVICES (1.6%)
CoStar Group, Inc. * 21,700 797,041
------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT (7.6%)
Advanced Energy Industries, Inc. * 42,850 515,486
MKS Instruments, Inc. * 32,260 624,876
Rudolph Technologies, Inc. * 74,300 607,031
Tessera Technologies, Inc. * 18,000 505,620
Varian Semiconductor Equipment
Associates, Inc. * 29,800 954,792
Volterra Semiconductor Corp. * 37,000 613,830
------------
3,821,635
------------
SOFTWARE (6.5%)
Cadence Design Systems, Inc. * 118,550 699,445
EPIQ Systems, Inc. * 32,550 522,428
Informatica Corp. * 43,000 790,770
JDA Software Group, Inc. * 37,500 772,875
PROS Holdings, Inc. * 44,213 347,514
SolarWinds, Inc. * 8,000 160,000
------------
3,293,032
------------
SPECIALTY RETAIL (1.5%)
Monro Muffler, Inc. 28,700 763,133
------------
TEXTILES APPAREL & LUXURY GOODS (6.4%)
Deckers Outdoor Corp. * 10,752 726,943
Iconix Brand Group, Inc. * 62,502 1,095,035
True Religion Apparel, Inc. * 32,550 727,818
Warnaco Group, Inc. (The) * 19,670 714,611
------------
3,264,407
------------
TRADING COMPANIES & DISTRIBUTORS (0.8%)
DXP Enterprises, Inc. * 40,650 412,191
------------
TRANSPORTATION (2.1%)
Aegean Marine Petroleum Network,
Inc. 62,350 1,059,950
------------
TOTAL COMMON STOCKS 47,616,264
------------
Continued
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (6.8%)
Fifth Third Institutional Money
Market Fund(a) 3,453,073 $ 3,453,073
------------
TOTAL INVESTMENTS IN AFFILIATES 3,453,073
------------
TOTAL INVESTMENTS (COST $49,988,058) - 100.8% 51,069,337
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8)% (382,897)
------------
NET ASSETS - 100.0% $ 50,686,440
============
NOTES TO SCHEDULE OF INVESTMENTS
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
ADR - American Depositary Receipt
At July 31, 2009, Small Cap Growth's investments were in the following
countries:
COUNTRY
- -------------------------------------------------------------------------------
Greece 2.1%
Ireland 2.1%
Israel 2.0%
Netherlands 0.8%
United States 93.0%
--------
TOTAL 100.0%
========
See notes to schedules of investments
and notes to financial statements.
52
MID CAP GROWTH
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (99.5%)
AEROSPACE & DEFENSE (2.6%)
BE Aerospace, Inc. * 71,650 $ 1,157,864
Precision Castparts Corp. 17,200 1,372,732
------------
2,530,596
------------
BIOTECHNOLOGY (1.1%)
United Therapeutics Corp. * 11,500 1,065,130
------------
CAPITAL MARKETS (3.4%)
T Rowe Price Group, Inc. 27,900 1,303,209
Waddell & Reed Financial, Inc.,
Class A 68,750 1,950,437
------------
3,253,646
------------
CHEMICALS (2.9%)
CF Industries Holdings, Inc. 15,900 1,255,146
FMC Corp. 30,550 1,485,952
------------
2,741,098
------------
COMMERCIAL SERVICES & SUPPLIES (3.0%)
Corrections Corp. of America * 92,300 1,593,098
Stericycle, Inc. * 26,100 1,336,320
------------
2,929,418
------------
COMMUNICATIONS EQUIPMENT (3.0%)
Ciena Corp. * 61,000 680,760
CommScope, Inc. * 38,200 977,920
Juniper Networks, Inc. * 48,370 1,263,908
------------
2,922,588
------------
COMPUTERS & PERIPHERALS (2.7%)
NetApp, Inc. * 52,850 1,187,011
Seagate Technology 119,000 1,432,760
------------
2,619,771
------------
CONSTRUCTION & ENGINEERING (1.3%)
URS Corp. * 23,900 1,209,340
------------
CONTAINERS & PACKAGING (1.4%)
Owens-Illinois, Inc. * 41,400 1,405,116
------------
DISTRIBUTORS (1.9%)
LKQ Corp. * 103,150 1,850,511
------------
DIVERSIFIED CONSUMER SERVICES (2.3%)
Apollo Group, Inc., Class A * 31,850 2,198,924
------------
DIVERSIFIED FINANCIAL SERVICES (1.2%)
IntercontinentalExchange, Inc. * 11,800 1,109,908
------------
DIVERSIFIED TELECOMMUNICATION
SERVICES (0.5%)
TW Telecom, Inc. * 50,000 495,000
------------
ELECTRIC UTILITIES (1.3%)
PPL Corp. 38,200 1,290,778
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ELECTRICAL COMPONENTS & EQUIPMENT (1.0%)
General Cable Corp. * 25,450 $ 986,696
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.4%)
Mettler-Toledo International, Inc. * 16,600 1,395,396
------------
ENERGY EQUIPMENT & SERVICES (4.9%)
Core Laboratories NV 11,150 958,454
Noble Corp. 54,100 1,831,826
Oceaneering International, Inc. * 38,200 1,945,144
------------
4,735,424
------------
FOOD PRODUCTS (1.2%)
HJ Heinz Co. 30,250 1,163,415
------------
HEALTHCARE EQUIPMENT & SUPPLIES (4.1%)
CR Bard, Inc. 14,350 1,055,730
DENTSPLY International, Inc. 57,950 1,932,632
Gen-Probe, Inc. * 26,100 968,832
------------
3,957,194
------------
HEALTHCARE PROVIDERS & SERVICES (1.6%)
Express Scripts, Inc. * 21,650 1,516,366
------------
HOTELS RESTAURANTS & LEISURE (1.7%)
Burger King Holdings, Inc. 93,900 1,598,178
------------
HOUSEHOLD DURABLES (1.5%)
Snap-On, Inc. 39,450 1,405,604
------------
HOUSEHOLD PRODUCTS (1.6%)
Church & Dwight Co., Inc. 26,750 1,577,715
------------
INDEPENDENT POWER PRODUCERS & ENERGY
TRADERS (1.6%)
NRG Energy, Inc. * 57,300 1,559,133
------------
INDUSTRIAL CONGLOMERATES (1.9%)
McDermott International, Inc. * 92,300 1,803,542
------------
INSURANCE (1.3%)
AON Corp. 32,150 1,268,317
------------
INTERNET SOFTWARE & SERVICES (1.5%)
Equinix, Inc. * 17,500 1,430,275
------------
IT SERVICES (4.5%)
Cognizant Technology Solutions
Corp., Class A * 66,850 1,978,091
Paychex, Inc. 46,500 1,232,250
SAIC, Inc. * 60,500 1,094,445
------------
4,304,786
------------
Continued
53
MID CAP GROWTH
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
LIFE SCIENCES TOOLS & SERVICES (4.0%)
Covance, Inc. * 25,491 $ 1,405,829
PerkinElmer, Inc. 87,250 1,538,217
Pharmaceutical Product Development,
Inc. 41,700 866,109
------------
3,810,155
------------
MACHINERY (2.8%)
ITT Corp. 31,500 1,556,100
Joy Global, Inc. 29,600 1,100,528
------------
2,656,628
------------
METALS & MINING (0.7%)
Cliffs Natural Resources, Inc. 24,058 658,949
------------
MULTILINE RETAIL (1.3%)
Dollar Tree, Inc. * 26,750 1,233,710
------------
OIL & GAS (3.4%)
Range Resources Corp. 38,200 1,772,862
Ultra Petroleum Corp. * 32,800 1,447,136
------------
3,219,998
------------
PERSONAL PRODUCTS (1.6%)
Herbalife, Ltd. 43,600 1,500,276
------------
PROFESSIONAL SERVICES (1.4%)
FTI Consulting, Inc. * 25,450 1,385,244
------------
REAL ESTATE INVESTMENT TRUSTS (1.9%)
Digital Realty Trust, Inc. 45,400 1,840,970
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (9.1%)
Broadcom Corp., Class A * 58,800 1,659,924
Lam Research Corp. * 48,000 1,442,880
Linear Technology Corp. 35,000 940,450
National Semiconductor Corp. 114,600 1,725,876
Nvidia Corp. * 127,350 1,646,636
Varian Semiconductor Equipment
Associates, Inc. * 42,650 1,366,506
------------
8,782,272
------------
SOFTWARE (4.9%)
Citrix Systems, Inc. * 44,550 1,585,980
Intuit, Inc. * 62,900 1,868,130
Nuance Communications, Inc. * 92,300 1,218,360
------------
4,672,470
------------
SPECIALTY RETAIL (6.2%)
Aeropostale, Inc. * 40,500 1,474,200
GameStop Corp., Class A * 59,200 1,295,888
Guess?, Inc. 59,000 1,715,130
TJX Cos., Inc. 39,300 1,423,839
------------
5,909,057
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
TEXTILES APPAREL & LUXURY GOODS (1.7%)
Warnaco Group, Inc. (The) * 43,600 $ 1,583,988
------------
WIRELESS TELECOMMUNICATION SERVICES (2.1%)
American Tower Corp., Class A * 57,900 1,973,811
------------
TOTAL COMMON STOCKS 95,551,393
------------
INVESTMENTS IN AFFILIATES (1.0%)
Fifth Third Institutional Money
Market Fund(a) 918,618 918,618
------------
TOTAL INVESTMENTS IN AFFILIATES 918,618
------------
TOTAL INVESTMENTS
(COST $102,442,172) - 100.5% 96,470,011
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (496,548)
------------
NET ASSETS - 100.0% $ 95,973,463
============
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.
54
QUALITY GROWTH
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (97.4%)
AUTO COMPONENTS (1.2%)
Johnson Controls, Inc. 140,000 $ 3,623,200
------------
BIOTECHNOLOGY (3.4%)
Amgen, Inc. * 90,000 5,607,900
Gilead Sciences, Inc. * 100,000 4,893,000
------------
10,500,900
------------
CAPITAL MARKETS (2.0%)
BlackRock, Inc. 20,000 3,810,800
T Rowe Price Group, Inc. 50,000 2,335,500
------------
6,146,300
------------
CHEMICALS (3.3%)
Monsanto Co. 65,000 5,460,000
Praxair, Inc. 60,000 4,690,800
------------
10,150,800
------------
COMMERCIAL SERVICES & SUPPLIES (1.3%)
Stericycle, Inc. * 80,000 4,096,000
------------
COMMUNICATIONS EQUIPMENT (8.3%)
Cisco Systems, Inc. * 490,000 10,784,900
Juniper Networks, Inc. * 135,000 3,527,550
Qualcomm, Inc. 155,000 7,162,550
Research In Motion, Ltd. * 50,000 3,800,000
------------
25,275,000
------------
COMPUTERS & PERIPHERALS (10.8%)
Apple, Inc. * 49,000 8,006,110
EMC Corp. * 370,000 5,572,200
Hewlett-Packard Co. 200,000 8,660,000
International Business Machines
Corp. 93,000 10,967,490
------------
33,205,800
------------
CONSTRUCTION & ENGINEERING (1.5%)
Fluor Corp. 85,000 4,488,000
------------
DIVERSIFIED FINANCIAL SERVICES (1.3%)
JPMorgan Chase & Co. 105,000 4,058,250
------------
ELECTRIC UTILITIES (1.4%)
FPL Group, Inc. 75,000 4,250,250
------------
ELECTRICAL COMPONENTS & EQUIPMENT (0.9%)
Roper Industries, Inc. 60,000 2,869,200
------------
ENERGY EQUIPMENT & SERVICES (0.8%)
Nabors Industries, Ltd. * 140,000 2,382,800
------------
FOOD & STAPLES RETAILING (2.4%)
Kroger Co. (The) 170,000 3,634,600
Walgreen Co. 120,000 3,726,000
------------
7,360,600
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
FOOD PRODUCTS (4.1%)
General Mills, Inc. 65,000 $ 3,829,150
HJ Heinz Co. 80,000 3,076,800
Kellogg Co. 120,000 5,700,000
------------
12,605,950
------------
HEALTHCARE EQUIPMENT & SUPPLIES (4.1%)
Alcon, Inc. 23,000 2,934,800
Baxter International, Inc. 95,000 5,355,150
St. Jude Medical, Inc. * 110,000 4,148,100
------------
12,438,050
------------
HEALTHCARE PROVIDERS & SERVICES (1.9%)
Express Scripts, Inc. * 40,000 2,801,600
UnitedHealth Group, Inc. 105,000 2,946,300
------------
5,747,900
------------
HOTELS RESTAURANTS & LEISURE (2.5%)
Burger King Holdings, Inc. 160,000 2,723,200
McDonald's Corp. 90,000 4,955,400
------------
7,678,600
------------
HOUSEHOLD PRODUCTS (2.8%)
Colgate-Palmolive Co. 71,054 5,147,152
Procter & Gamble Co. (The) 60,000 3,330,600
------------
8,477,752
------------
INTERNET & CATALOG RETAIL (1.1%)
Amazon.com, Inc. * 40,000 3,430,400
------------
INTERNET SOFTWARE & SERVICES (2.6%)
Google, Inc., Class A * 18,000 7,974,900
------------
IT SERVICES (0.9%)
Visa, Inc., Class A 40,000 2,618,400
------------
LIFE SCIENCES TOOLS & SERVICES (2.0%)
Illumina, Inc. * 110,000 3,975,400
Thermo Fisher Scientific, Inc. * 50,000 2,264,000
------------
6,239,400
------------
MACHINERY (4.4%)
Danaher Corp. 75,000 4,593,000
Flowserve Corp. 52,000 4,200,040
Illinois Tool Works, Inc. 115,000 4,663,250
------------
13,456,290
------------
METALS & MINING (1.7%)
Freeport-McMoRan Copper &
Gold, Inc. 84,000 5,065,200
------------
MULTILINE RETAIL (0.9%)
Kohl's Corp. * 60,000 2,913,000
------------
MULTI-UTILITIES (1.3%)
MDU Resources Group, Inc. 200,000 4,026,000
------------
Continued
55
QUALITY GROWTH
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
OIL & GAS (5.1%)
Anadarko Petroleum Corp. 75,000 $ 3,615,000
Chevron Corp. 40,000 2,778,800
Consol Energy, Inc. 65,000 2,309,450
Occidental Petroleum Corp. 55,000 3,923,700
Southwestern Energy Co. * 70,000 2,900,100
------------
15,527,050
------------
OIL COMPANY-EXPLORATION & PRODUCTION (1.0%)
PetroHawk Energy Corp. * 130,000 3,156,400
------------
PERSONAL PRODUCTS (1.3%)
Estee Lauder Cos., Inc. (The),
Class A 110,000 4,008,400
------------
PHARMACEUTICALS (3.8%)
Abbott Laboratories 95,000 4,274,050
Johnson & Johnson 120,000 7,306,800
------------
11,580,850
------------
ROAD & RAIL (1.5%)
Union Pacific Corp. 80,000 4,601,600
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (4.5%)
Broadcom Corp., Class A * 165,000 4,657,950
Intel Corp. 470,000 9,047,500
------------
13,705,450
------------
SOFTWARE (6.5%)
Microsoft Corp. 480,000 11,289,600
Oracle Corp. 390,000 8,630,700
------------
19,920,300
------------
SPECIALTY RETAIL (2.1%)
Best Buy Co., Inc. 90,000 3,363,300
O'Reilly Automotive, Inc. * 75,000 3,049,500
------------
6,412,800
------------
TEXTILES APPAREL & LUXURY GOODS (1.5%)
Nike, Inc., Class B 80,000 4,531,200
------------
TRADING COMPANIES & DISTRIBUTORS (1.2%)
Fastenal Co. 105,000 3,734,850
------------
TOTAL COMMON STOCKS 298,257,842
------------
PRINCIPAL
AMOUNT
-------------
ASSET-BACKED SECURITIES (0.0%)
MANUFACTURED HOUSING ABS OTHER (0.0%)
Green Tree Financial Corp., Series
1995-4,
Class M1, 7.60%, 6/15/25 (a) $ 131,715 125,001
------------
OTHER ABS (0.0%)
Aerco, Ltd., Series 2A, Class A3,
0.75%, 7/15/25 (a) (b) (d) 74,907 29,963
------------
TOTAL ASSET-BACKED SECURITIES 154,964
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS (0.1%)
COMMERCIAL BANKS-CENTRAL U.S. (0.1%)
Bank One Capital III, 8.75%, 9/1/30 $ 165,792 $ 158,172
------------
TOTAL CORPORATE BONDS 158,172
------------
MORTGAGE-BACKED SECURITIES (0.4%)
WL COLLATERAL CMO OTHER (0.3%)
Indymac Index Mortgage Loan Trust,
Series 2005-AR9, Class 1A1, 3.64%,
7/25/35 (a) 127,088 72,108
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.82%,
2/25/35 (a) 239,814 228,434
Morgan Stanley Mortgage Loan Trust,
Series 2004-4, Class 3A, 5.00%,
8/25/19 497,476 491,724
------------
792,266
------------
WL COLLATERAL CMO SEQUENTIAL (0.1%)
Countrywide Alternative Loan Trust,
Series 2005-74T1, Class A1, 6.00%,
1/25/36 297,283 207,494
Countrywide Alternative Loan Trust,
Series 2005-J3, Class 3A1, 6.50%,
9/25/34 130,543 106,964
------------
314,458
------------
WL COLLATERAL SUPPORT (0.0%)
Bear Stearns Alt-A Trust, Series
2005-9, Class 21A2, 4.58%,
11/25/35 (a) 116,022 37,792
------------
TOTAL MORTGAGE-BACKED SECURITIES 1,144,516
------------
U.S. GOVERNMENT AGENCIES (0.3%)
FANNIE MAE (0.2%)
5.50%, 4/25/37 253,110 249,934
6.00%, 8/25/33 (a) 286,718 281,161
------------
531,095
------------
FREDDIE MAC (0.1%)
5.50%, 3/15/35 222,635 231,959
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (0.0%)
0.51%, 4/16/46, IO (a)(d) 3,126,686 90,791
------------
TOTAL U.S. GOVERNMENT AGENCIES 853,845
------------
Continued
56
QUALITY GROWTH
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (1.8%)
Fifth Third Institutional Money
Market Fund(c) 5,542,098 $ 5,542,098
------------
TOTAL INVESTMENTS IN AFFILIATES 5,542,098
------------
TOTAL INVESTMENTS (COST
$296,172,115) - 100.0% 306,111,437
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.0)% (27,045)
------------
NET ASSETS - 100.0% $306,084,392
============
NOTES TO SCHEDULE OF INVESTMENTS
* Non-income producing security.
(a) Variable rate security. Rate presented represents rate in effect at July
31, 2009.
(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) Illiquid Securities.
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, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (94.6%)
AEROSPACE & DEFENSE (2.8%)
United Technologies Corp. 4,810 $ 262,001
------------
AIR FREIGHT & LOGISTICS (1.7%)
CH Robinson Worldwide, Inc. 1,360 74,161
United Parcel Service, Inc., Class B 1,590 85,430
------------
159,591
------------
BEVERAGES (3.3%)
Coca-Cola Co. (The) 4,330 215,807
Diageo PLC ADR 1,480 92,322
------------
308,129
------------
CAPITAL MARKETS (5.9%)
BlackRock, Inc. 650 123,851
Invesco, Ltd. 6,740 133,115
Lazard, Ltd., Class A 2,100 77,679
Morgan Stanley 4,160 118,560
Northern Trust Corp. 1,570 93,902
------------
547,107
------------
CHEMICALS (5.8%)
Air Products & Chemicals, Inc. 2,310 172,326
Ecolab, Inc. 3,420 141,964
Monsanto Co. 940 78,960
Praxair, Inc. 1,940 151,669
------------
544,919
------------
COMMUNICATIONS EQUIPMENT (3.3%)
Cisco Systems, Inc. * 6,460 142,185
Qualcomm, Inc. 3,510 162,197
------------
304,382
------------
COMPUTERS & PERIPHERALS (5.8%)
Apple, Inc. * 1,100 179,729
Hewlett-Packard Co. 2,590 112,147
International Business Machines
Corp. 2,120 250,012
------------
541,888
------------
CONSTRUCTION & ENGINEERING (1.6%)
Fluor Corp. 2,870 151,536
------------
DIVERSIFIED FINANCIAL SERVICES (5.2%)
CME Group, Inc. 370 103,167
JPMorgan Chase & Co. 9,880 381,862
------------
485,029
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.9%)
AT&T, Inc. 6,650 174,429
------------
ELECTRIC UTILITIES (1.0%)
FPL Group, Inc. 1,570 88,972
------------
Continued
57
DIVIDEND GROWTH
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ENERGY EQUIPMENT & SERVICES (1.2%)
Schlumberger, Ltd. 2,120 $ 113,420
------------
FOOD & STAPLES RETAILING (3.0%)
Walgreen Co. 2,870 89,114
Wal-Mart Stores, Inc. 3,880 193,534
------------
282,648
------------
HEALTHCARE PROVIDERS & SERVICES (1.1%)
UnitedHealth Group, Inc. 3,510 98,491
------------
HOTELS RESTAURANTS & LEISURE (1.2%)
McDonald's Corp. 2,040 112,322
------------
HOUSEHOLD PRODUCTS (2.9%)
Kimberly-Clark Corp. 1,940 113,393
Procter & Gamble Co. (The) 2,870 159,314
------------
272,707
------------
INTERNET & CATALOG RETAIL (0.8%)
Amazon.com, Inc. * 840 72,038
------------
INTERNET SOFTWARE & SERVICES (2.2%)
Google, Inc., Class A * 460 203,803
------------
IT SERVICES (0.9%)
Accenture, Ltd., Class A 2,390 83,817
------------
LIFE SCIENCES TOOLS & SERVICES (1.0%)
Techne Corp. 1,480 94,454
------------
MACHINERY (1.4%)
Illinois Tool Works, Inc. 3,420 138,681
------------
METALS & MINING (0.5%)
Freeport-McMoRan Copper &
Gold, Inc. 800 48,240
------------
MULTI-UTILITIES (2.2%)
Wisconsin Energy Corp. 4,810 206,686
------------
OIL & GAS (11.8%)
Apache Corp. 2,120 177,974
Chevron Corp. 2,590 179,927
Exxon Mobil Corp. 4,610 324,498
Marathon Oil Corp. 2,530 81,593
Occidental Petroleum Corp. 2,310 164,795
XTO Energy, Inc. 4,160 167,357
------------
1,096,144
------------
PERSONAL PRODUCTS (1.5%)
Alberto-Culver Co. 5,450 139,629
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
PHARMACEUTICALS (7.4%)
Abbott Laboratories 3,040 $ 136,770
Johnson & Johnson 4,530 275,832
Schering-Plough Corp. 3,420 90,664
Teva Pharmaceutical Industries,
Ltd. ADR 3,510 187,223
------------
690,489
------------
ROAD & RAIL (1.4%)
Canadian Pacific Railway, Ltd. 2,950 131,245
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (3.0%)
Intel Corp. 6,740 129,745
Xilinx, Inc. 6,740 146,191
------------
275,936
------------
SOFTWARE (4.5%)
Microsoft Corp. 9,790 230,261
Oracle Corp. 8,400 185,892
------------
416,153
------------
SPECIALTY RETAIL (2.6%)
Abercrombie & Fitch Co., Class A 1,900 54,321
Best Buy Co., Inc. 2,150 80,346
TJX Cos., Inc. 2,950 106,878
------------
241,545
------------
TEXTILES APPAREL & LUXURY GOODS (3.6%)
Nike, Inc., Class B 3,040 172,186
VF Corp. 2,590 167,547
------------
339,733
------------
TOBACCO (1.2%)
Philip Morris International, Inc. 2,310 107,646
------------
TRADING COMPANIES & DISTRIBUTORS (0.9%)
Fastenal Co. 2,350 83,589
------------
TOTAL COMMON STOCKS 8,817,399
------------
EXCHANGE TRADED FUNDS (1.1%)
iShares S&P U.S. Preferred Stock
Index Fund 2,870 102,172
------------
TOTAL EXCHANGE TRADED FUNDS 102,172
------------
Continued
58
DIVIDEND GROWTH
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (2.0%)
Fifth Third Institutional Money
Market Fund (a) 188,258 $ 188,259
TOTAL INVESTMENTS IN AFFILIATES 188,259
------------
TOTAL INVESTMENTS (COST
$8,122,034) - 97.7% 9,107,830
OTHER ASSETS IN EXCESS OF
LIABILITIES - 2.3% 216,104
------------
NET ASSETS - 100.0% $ 9,323,934
============
NOTES TO SCHEDULE OF INVESTMENTS
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
The following abbreviation is used in the Schedule of Investments:
ADR - American Depositary Receipt
At July 31, 2009, Dividend Growth's investments were in the following countries:
COUNTRY
- --------------------------------------------------------------------------------
Bermuda 1.8%
Canada 1.4%
Great Britain 1.0%
Israel 2.1%
United States 93.7%
---------
TOTAL 100.0%
=========
See notes to schedules of investments
and notes to financial statements.
MICRO CAP VALUE
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (92.7%)
AUTO COMPONENTS (0.0%)
Motorcar Parts of America, Inc. * 740 $ 3,197
------------
CAPITAL MARKETS (4.8%)
Gladstone Capital Corp. 27,261 273,155
MVC Capital, Inc. 27,086 249,462
Penson Worldwide, Inc. * 30,481 355,713
Sanders Morris Harris Group, Inc. 45,409 264,735
SWS Group, Inc. 15,360 211,354
------------
1,354,419
------------
CHEMICALS (1.2%)
Quaker Chemical Corp. 18,500 333,000
------------
COMMERCIAL BANKS (9.6%)
Boston Private Financial Holdings, Inc. 37,300 170,834
Center Bancorp, Inc. 27,062 243,829
Center Financial Corp. 71,860 236,419
First Merchants Corp. 12,090 95,632
Independent Bank Corp. 15,582 332,364
MainSource Financial Group, Inc. 19,378 130,026
Northrim BanCorp, Inc. 14,700 216,090
Pacific Continental Corp. 23,200 246,616
Renasant Corp. 16,390 244,047
Rurban Financial Corp. 8,876 63,641
Simmons First National Corp.,
Class A 9,013 270,210
South Financial Group, Inc. (The) 107,600 173,236
Southcoast Financial Corp. * 18,472 95,870
Washington Trust Bancorp, Inc. 10,765 195,492
------------
2,714,306
------------
COMMERCIAL SERVICES & SUPPLIES (5.5%)
Barrett Business Services, Inc. 22,174 221,296
CBIZ, Inc. * 34,055 222,720
Cornell Cos., Inc. * 13,700 234,681
ICT Group, Inc. * 29,267 302,035
Schawk, Inc. 22,203 160,750
Spherion Corp. * 73,200 402,600
------------
1,544,082
------------
COMMUNICATIONS EQUIPMENT (2.3%)
Exfo Electro Optical Engineering, Inc. * 62,600 195,938
Symmetricom, Inc. * 68,320 442,714
------------
638,652
------------
COMPUTERS & PERIPHERALS (0.4%)
ActivIdentity Corp. * 43,055 108,499
------------
DISTRIBUTORS (1.5%)
Audiovox Corp., Class A * 54,108 426,912
------------
DIVERSIFIED CONSUMER SERVICES (1.1%)
Stewart Enterprises, Inc., Class A 64,400 314,916
------------
Continued
59
MICRO CAP VALUE
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
DIVERSIFIED FINANCIAL SERVICES (0.8%)
NGP Capital Resources Co. 34,531 $ 218,581
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.7%)
Iowa Telecommunications Services,
Inc. 15,800 193,708
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (5.5%)
CTS Corp. 28,738 242,261
MTS Systems Corp. 9,200 216,108
OSI Systems, Inc. * 15,572 308,481
PAR Technology Corp. * 44,085 243,349
TTM Technologies, Inc. * 31,474 310,649
Zygo Corp. * 38,342 242,322
------------
1,563,170
------------
ENERGY EQUIPMENT & SERVICES (1.4%)
ION Geophysical Corp. * 85,700 230,533
Mitcham Industries, Inc. * 35,100 156,546
------------
387,079
------------
FOOD & STAPLES RETAILING (1.2%)
Nash Finch Co. 11,120 341,384
------------
FOOD PRODUCTS (3.4%)
B&G Foods, Inc., Class A 30,933 258,291
Monterey Gourmet Foods, Inc. * 65,776 100,637
Overhill Farms, Inc. * 88,328 505,236
Tasty Baking Co. 15,779 113,924
------------
978,088
------------
GAS-DISTRIBUTION (1.1%)
Chesapeake Utilities Corp. 9,115 302,162
------------
HEALTHCARE EQUIPMENT & SUPPLIES (3.7%)
Angiodynamics, Inc. * 19,461 242,873
Greatbatch, Inc. * 11,350 250,154
Medical Action Industries, Inc. * 33,783 421,950
National Dentex Corp. * 21,201 143,107
------------
1,058,084
------------
HEALTHCARE PROVIDERS & SERVICES (2.1%)
American Dental Partners, Inc. * 17,714 231,876
Cross Country Healthcare, Inc. * 22,390 186,957
Res-Care, Inc. * 10,420 162,760
------------
581,593
------------
HEALTHCARE TECHNOLOGY (1.2%)
Omnicell, Inc. * 27,500 343,200
------------
HOTELS RESTAURANTS & LEISURE (2.6%)
Benihana, Inc., Class A * 71,078 570,046
Frisch's Restaurants, Inc. 5,446 151,126
------------
721,172
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
HOUSEHOLD PRODUCTS (0.7%)
Prestige Brands Holdings, Inc. * 32,400 $ 211,572
------------
INSURANCE (3.6%)
Amerisafe, Inc. * 13,341 221,861
Meadowbrook Insurance Group, Inc. 57,082 451,518
SeaBright Insurance Holdings, Inc. * 36,172 351,592
------------
1,024,971
------------
INTERNET SOFTWARE & SERVICES (1.2%)
Perficient, Inc. * 45,400 335,052
------------
IT SERVICES (1.8%)
Ciber, Inc. * 62,987 208,487
Ness Technologies, Inc. * 55,084 293,047
------------
501,534
------------
MACHINERY (1.0%)
Flanders Corp. * 44,874 286,745
------------
MARINE (0.8%)
StealthGas, Inc. 42,493 230,312
------------
MEDIA (0.6%)
Dolan Media Co. * 12,400 169,012
------------
OIL & GAS (2.5%)
Gulfport Energy Corp. * 56,900 396,593
Rosetta Resources, Inc. * 30,300 314,211
------------
710,804
------------
PAPER & FOREST PRODUCTS (0.5%)
Glatfelter 14,600 151,110
------------
REAL ESTATE INVESTMENT TRUSTS (3.2%)
Cedar Shopping Centers, Inc. 52,900 280,899
Hersha Hospitality Trust 85,781 231,609
MHI Hospitality Corp. 28,720 34,464
Monmouth Real Estate Investment
Corp., Class A 33,643 215,315
U-Store-It Trust 26,560 128,816
------------
891,103
------------
ROAD & RAIL (4.4%)
Celadon Group, Inc. * 42,030 388,778
Marten Transport, Ltd. * 12,585 221,999
Saia, Inc. * 26,150 472,269
USA Truck, Inc. * 11,900 171,479
------------
1,254,525
------------
Continued
60
MICRO CAP VALUE
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (8.1%)
Applied Micro Circuits Corp. * 47,190 $ 408,194
AXT, Inc. * 202,600 386,966
IXYS Corp. 24,048 185,891
Rudolph Technologies, Inc. * 51,314 419,235
Semitool, Inc. * 81,097 480,094
Ultratech, Inc. * 16,544 197,039
White Electronic Designs Corp. * 49,111 224,437
------------
2,301,856
------------
SOFTWARE (2.2%)
American Software, Inc., Class A 51,600 330,756
THQ, Inc. * 43,900 294,569
------------
625,325
------------
SPECIALTY RETAIL (5.6%)
Charlotte Russe Holdings, Inc. * 22,282 334,453
Group 1 Automotive, Inc. 7,800 229,788
Jo-Ann Stores, Inc. * 17,485 407,400
Stein Mart, Inc. * 55,764 615,077
------------
1,586,718
------------
TEXTILES APPAREL & LUXURY GOODS (2.1%)
Brown Shoe Co., Inc. 42,600 330,150
Skechers U.S.A., Inc., Class A * 18,700 258,621
------------
588,771
------------
THRIFTS & MORTGAGE FINANCE (3.5%)
Berkshire Hills Bancorp, Inc. 15,390 351,815
BofI Holding, Inc. * 36,050 254,153
United Western Bancorp, Inc. 26,047 207,855
WSFS Financial Corp. 6,760 181,641
------------
995,464
------------
TRADING COMPANIES & DISTRIBUTORS (0.8%)
Aceto Corp. 31,422 220,897
------------
TOTAL COMMON STOCKS 26,211,975
------------
Continued
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (6.0%)
Fifth Third Institutional Money
Market Fund (a) 1,698,188 $ 1,698,188
------------
TOTAL INVESTMENTS IN AFFILIATES 1,698,188
------------
TOTAL INVESTMENTS (COST
$28,107,360) - 98.7% 27,910,163
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.3% 363,464
------------
NET ASSETS - 100.0% $ 28,273,627
============
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.
61
SMALL CAP VALUE
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (95.9%)
AEROSPACE & DEFENSE (1.9%)
AAR Corp. * 66,310 $ 1,268,510
------------
CAPITAL MARKETS (2.3%)
Gladstone Capital Corp. 68,588 687,252
SWS Group, Inc. 61,225 842,456
------------
1,529,708
------------
CHEMICALS (3.2%)
Innophos Holdings, Inc. 54,175 1,017,407
Olin Corp. 82,584 1,138,833
------------
2,156,240
------------
COAL (1.5%)
Massey Energy Co. 37,978 1,010,215
------------
COMMERCIAL BANKS (9.8%)
Community Bank System, Inc. 65,788 1,192,736
Marshall & Ilsley Corp. 170,417 1,029,319
Old National Bancorp 97,149 1,097,784
Renasant Corp. 65,202 970,858
TCF Financial Corp. 78,959 1,116,480
UMB Financial Corp. 12,655 527,966
United Bankshares, Inc. 34,768 704,400
------------
6,639,543
------------
COMMERCIAL SERVICES & SUPPLIES (1.8%)
Corrections Corp. of America * 68,910 1,189,387
------------
COMMUNICATIONS EQUIPMENT (5.2%)
ADC Telecommunications, Inc. * 126,958 924,254
Comtech Telecommunications Corp. * 36,383 1,159,526
Harmonic, Inc. * 203,275 1,408,696
------------
3,492,476
------------
CONSTRUCTION & ENGINEERING (2.0%)
Insituform Technologies, Inc.,
Class A * 73,950 1,360,680
------------
DIVERSIFIED CONSUMER SERVICES (1.4%)
Stewart Enterprises, Inc., Class A 190,553 931,804
------------
DIVERSIFIED TELECOMMUNICATION
SERVICES (1.5%)
Iowa Telecommunications Services, Inc. 84,435 1,035,173
------------
ELECTRIC UTILITIES (3.2%)
Cleco Corp. 48,137 1,140,366
Westar Energy, Inc. 50,587 995,046
------------
2,135,412
------------
ELECTRICAL COMPONENTS & EQUIPMENT (2.1%)
EnerSys * 72,484 1,434,458
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ELECTRIC-INTEGRATED (1.4%)
Pike Electric Corp. * 87,800 $ 924,534
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (2.9%)
CTS Corp. 107,063 902,541
MTS Systems Corp. 43,948 1,032,339
------------
1,934,880
------------
ENERGY EQUIPMENT & SERVICES (1.2%)
Oil States International, Inc. * 30,119 816,827
------------
FOOD & STAPLES RETAILING (2.7%)
Casey's General Stores, Inc. 32,020 878,309
Nash Finch Co. 31,700 973,190
------------
1,851,499
------------
FOOD PRODUCTS (3.2%)
Corn Products International, Inc. 33,271 931,588
Fresh Del Monte Produce, Inc. * 56,252 1,204,355
------------
2,135,943
------------
GAS-DISTRIBUTION (1.5%)
Southern Union Co. 53,016 1,027,450
------------
HEALTHCARE EQUIPMENT & SUPPLIES (0.5%)
Wright Medical Group, Inc. * 23,450 326,424
------------
HEALTHCARE PROVIDERS & SERVICES (1.1%)
Kindred Healthcare, Inc. * 54,107 759,662
------------
HOUSEHOLD PRODUCTS (1.0%)
Prestige Brands Holdings, Inc. * 103,675 676,998
------------
INSURANCE (4.3%)
Endurance Specialty Holdings, Ltd. 45,074 1,504,119
Platinum Underwriters Holdings, Ltd. 40,826 1,377,878
------------
2,881,997
------------
INTERNET SOFTWARE & SERVICES (1.2%)
Valueclick, Inc. * 67,727 778,860
------------
IT SERVICES (1.8%)
Perot Systems Corp., Class A * 77,606 1,240,144
------------
MACHINERY (4.4%)
Albany International Corp., Class A 87,255 1,198,884
EnPro Industries, Inc. * 54,509 971,350
Toro Co. 23,831 825,982
------------
2,996,216
------------
MACHINERY-ELECTRICAL (1.0%)
Baldor Electric Co. 25,567 658,606
------------
Continued
62
SMALL CAP VALUE
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
MARINE (1.4%)
Alexander & Baldwin, Inc. 31,777 $ 928,524
------------
METALS & MINING (0.8%)
Schnitzer Steel Industries, Inc.,
Class A 10,236 550,390
------------
MULTI-UTILITIES (1.8%)
Vectren Corp. 49,407 1,213,436
------------
OIL & GAS (4.5%)
Holly Corp. 43,875 933,221
Rosetta Resources, Inc. * 108,124 1,121,246
Tsakos Energy Navigation, Ltd. 56,896 1,012,180
------------
3,066,647
------------
PAPER & FOREST PRODUCTS (1.4%)
Glatfelter 88,650 917,528
------------
PHARMACEUTICALS (1.0%)
Par Pharmaceutical Cos., Inc. * 40,216 651,901
------------
REAL ESTATE INVESTMENT TRUSTS (3.2%)
LaSalle Hotel Properties 76,817 1,145,341
U-Store-It Trust 78,986 383,082
Weingarten Realty Investors 42,974 663,089
------------
2,191,512
------------
ROAD & RAIL (4.0%)
Kansas City Southern * 51,500 1,045,965
Marten Transport, Ltd. * 44,008 776,301
Werner Enterprises, Inc. 47,349 855,123
------------
2,677,389
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (2.5%)
Cabot Microelectronics Corp. * 30,837 1,045,991
Teradyne, Inc. * 84,545 666,215
------------
1,712,206
------------
SOFTWARE (1.3%)
THQ, Inc. * 127,295 854,149
------------
SPECIALTY RETAIL (2.5%)
Group 1 Automotive, Inc. 24,519 722,330
Jo-Ann Stores, Inc. * 41,564 968,441
------------
1,690,771
------------
TEXTILES APPAREL & LUXURY GOODS (4.8%)
Brown Shoe Co., Inc. 143,875 1,115,031
Phillips-Van Heusen Corp. 34,833 1,232,392
Skechers U.S.A., Inc., Class A * 65,937 911,909
------------
3,259,332
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
THRIFTS & MORTGAGE FINANCE (1.1%)
NewAlliance Bancshares, Inc. 62,091 $ 760,615
------------
WATER (1.5%)
American Water Works Co., Inc. 53,054 1,045,694
------------
TOTAL COMMON STOCKS 64,713,740
------------
INVESTMENTS IN AFFILIATES (4.4%)
Fifth Third Institutional Money
Market Fund (a) 2,991,492 2,991,492
------------
TOTAL INVESTMENTS IN AFFILIATES 2,991,492
------------
TOTAL INVESTMENTS (COST
$69,973,083) - 100.3% 67,705,232
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (224,012)
------------
NET ASSETS - 100.0% $ 67,481,220
============
NOTES TO SCHEDULE OF INVESTMENTS
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
At July 31, 2009, Small Cap Value's investments were in the following countries:
COUNTRY
- --------------------------------------------------------------------------------
Bermuda 5.8%
Cayman Islands 1.8%
United States 92.4%
---------
TOTAL 100.0%
=========
See notes to schedules of investments
and notes to financial statements.
63
ALL CAP VALUE
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (97.6%)
AEROSPACE & DEFENSE (2.5%)
AAR Corp. * 93,965 $ 1,797,551
General Dynamics Corp. 10,583 586,192
United Technologies Corp. 21,162 1,152,694
------------
3,536,437
------------
BEVERAGES (1.5%)
Coca-Cola Enterprises, Inc. 112,165 2,107,580
------------
BIOTECHNOLOGY (2.0%)
Amgen, Inc. * 44,865 2,795,538
------------
CABLE TV (0.2%)
Time Warner Cable, Inc. 7,899 261,141
------------
CAPITAL MARKETS (1.6%)
Lazard, Ltd., Class A 21,165 782,893
Legg Mason, Inc. 51,635 1,453,009
------------
2,235,902
------------
CHEMICALS (3.2%)
Dow Chemical Co. (The) 76,186 1,612,858
E.I. du Pont de Nemours & Co. 31,746 981,904
Lubrizol Corp. 33,863 1,961,683
------------
4,556,445
------------
COMMERCIAL BANKS (4.9%)
Keycorp 196,815 1,137,591
Marshall & Ilsley Corp. 135,440 818,058
Old National Bancorp 71,955 813,091
United Bankshares, Inc. 16,930 343,002
US Bancorp 42,325 863,853
Wells Fargo & Co. 122,516 2,996,741
------------
6,972,336
------------
COMMERCIAL SERVICES & SUPPLIES (1.7%)
ICT Group, Inc. * 46,560 480,499
Manpower, Inc. 16,930 811,794
Pitney Bowes, Inc. 50,791 1,048,834
------------
2,341,127
------------
COMMUNICATIONS EQUIPMENT (0.8%)
Symmetricom, Inc. * 169,304 1,097,090
------------
COMPUTERS & PERIPHERALS (1.1%)
Hewlett-Packard Co. 35,975 1,557,718
------------
CONSUMER FINANCE (0.8%)
Discover Financial Services 95,235 1,131,392
------------
DIVERSIFIED FINANCIAL SERVICES (6.4%)
Bank of America Corp. 292,471 4,325,646
JPMorgan Chase & Co. 108,353 4,187,843
NYSE Euronext 21,165 570,397
------------
9,083,886
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
DIVERSIFIED TELECOMMUNICATION SERVICES (5.4%)
AT&T, Inc. 99,465 $ 2,608,967
Qwest Communications International, Inc. 645,465 2,491,495
Verizon Communications, Inc. 45,290 1,452,450
Windstream Corp. 129,810 1,138,434
------------
7,691,346
------------
ELECTRIC UTILITIES (4.6%)
American Electric Power Co., Inc. 42,328 1,310,475
Duke Energy Corp. 46,560 720,749
Edison International 31,742 1,025,901
FirstEnergy Corp. 33,860 1,395,032
FPL Group, Inc. 21,162 1,199,250
Pepco Holdings, Inc. 59,254 852,073
------------
6,503,480
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.7%)
Avnet, Inc. * 21,162 516,353
Vishay Intertechnology, Inc. * 63,488 451,400
------------
967,753
------------
ENERGY EQUIPMENT & SERVICES (6.2%)
Nabors Industries, Ltd. * 141,370 2,406,117
Tidewater, Inc. 38,094 1,714,230
Transocean, Ltd. * 42,325 3,372,879
Weatherford International, Ltd. * 68,990 1,294,253
------------
8,787,479
------------
FOOD & STAPLES RETAILING (1.8%)
Safeway, Inc. 74,071 1,402,164
SUPERVALU, Inc. 74,070 1,098,458
------------
2,500,622
------------
FOOD PRODUCTS (0.6%)
Tyson Foods, Inc., Class A 76,185 870,795
------------
HEALTHCARE EQUIPMENT & SUPPLIES (1.1%)
Hologic, Inc. * 105,815 1,554,422
------------
HEALTHCARE PROVIDERS & SERVICES (1.9%)
Omnicare, Inc. 30,685 732,451
UnitedHealth Group, Inc. 67,720 1,900,223
------------
2,632,674
------------
HOTELS RESTAURANTS & LEISURE (1.6%)
Carnival Corp. 45,710 1,279,423
Darden Restaurants, Inc. 31,745 1,028,221
------------
2,307,644
------------
Continued
64
ALL CAP VALUE
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
HOUSEHOLD DURABLES (2.4%)
Snap-On, Inc. 19,049 $ 678,716
Stanley Works (The) 31,742 1,274,441
Tupperware Brands Corp. 44,440 1,514,071
------------
3,467,228
------------
INDUSTRIAL CONGLOMERATES (2.6%)
3M Co. 21,162 1,492,344
General Electric Co. 166,338 2,228,929
------------
3,721,273
------------
INSURANCE (4.3%)
Allstate Corp. (The) 38,092 1,025,056
Hartford Financial Services Group, Inc. 42,326 697,956
MetLife, Inc. 34,688 1,177,658
Prudential Financial, Inc. 34,705 1,536,390
Reinsurance Group of America, Inc. 10,662 442,473
Travelers Cos., Inc. (The) 29,630 1,276,164
------------
6,155,697
------------
LEISURE EQUIPMENT & PRODUCTS (0.6%)
Mattel, Inc. 46,560 818,525
------------
MACHINERY (2.7%)
Caterpillar, Inc. 29,628 1,305,409
Joy Global, Inc. 28,360 1,054,425
Pall Corp. 48,674 1,464,114
------------
3,823,948
------------
MACHINERY-ELECTRICAL (0.5%)
Baldor Electric Co. 25,395 654,175
------------
MEDIA (1.5%)
Time Warner, Inc. 31,460 838,724
Viacom, Inc., Class B * 58,410 1,352,775
------------
2,191,499
------------
METALS & MINING (2.3%)
Alcoa, Inc. 205,705 2,419,091
Schnitzer Steel Industries, Inc., Class A 16,930 910,326
------------
3,329,417
------------
MULTI-UTILITIES (1.0%)
PG&E Corp. 33,860 1,366,928
------------
OIL & GAS (10.3%)
Anadarko Petroleum Corp. 30,472 1,468,750
Apache Corp. 16,930 1,421,274
Chevron Corp. 42,328 2,940,526
ConocoPhillips 57,140 2,497,589
Exxon Mobil Corp. 55,023 3,873,069
XTO Energy, Inc. 57,985 2,332,737
------------
14,533,945
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
PHARMACEUTICALS (6.8%)
Forest Laboratories, Inc. * 107,930 $ 2,787,832
Johnson & Johnson 31,742 1,932,770
Pfizer, Inc. 84,651 1,348,491
Schering-Plough Corp. 133,325 3,534,446
------------
9,603,539
------------
REAL ESTATE INVESTMENT TRUSTS (0.8%)
Annaly Capital Management, Inc. 46,560 784,536
Duke Realty Corp. 42,325 401,664
------------
1,186,200
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (2.7%)
Cabot Microelectronics Corp. * 37,249 1,263,486
Intel Corp. 97,350 1,873,988
Teradyne, Inc. * 84,650 667,042
------------
3,804,516
------------
SOFTWARE (3.3%)
Amdocs, Ltd. * 63,490 1,518,681
Cadence Design Systems, Inc. * 126,975 749,152
Microsoft Corp. 80,420 1,891,478
THQ, Inc. * 84,650 568,002
------------
4,727,313
------------
SPECIALTY RETAIL (0.9%)
American Eagle Outfitters, Inc. 86,770 1,248,620
------------
TEXTILES APPAREL & LUXURY GOODS (2.4%)
Phillips-Van Heusen Corp. 43,595 1,542,391
Skechers U.S.A., Inc., Class A * 31,745 439,033
VF Corp. 21,165 1,369,164
------------
3,350,588
------------
THRIFTS & MORTGAGE FINANCE (0.7%)
New York Community Bancorp, Inc. 84,651 926,082
------------
TOBACCO (1.2%)
Altria Group, Inc. 93,115 1,632,306
------------
TOTAL COMMON STOCKS 138,034,606
------------
Continued
65
ALL CAP VALUE
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (2.6%)
Fifth Third Institutional Money
Market Fund (a) 3,665,349 $ 3,665,349
------------
TOTAL INVESTMENTS IN AFFILIATES 3,665,349
------------
TOTAL INVESTMENTS (COST
$149,373,622) - 100.2% 141,699,955
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.2)% (258,267)
------------
NET ASSETS - 100.0% $141,441,688
=============
NOTES TO SCHEDULE OF INVESTMENTS
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
At July 31, 2009, All Cap Value's investments were in the following countries:
COUNTRY
- --------------------------------------------------------------------------------
Bermuda 2.3%
Guernsey, C.I. 1.1%
Switzerland 3.3%
United States 93.3%
------------
TOTAL 100.0%
============
See notes to schedules of investments
and notes to financial statements.
DISCIPLINED LARGE CAP VALUE
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (97.3%)
AEROSPACE & DEFENSE (3.2%)
General Dynamics Corp. 87,313 $ 4,836,267
Northrop Grumman Corp. 56,730 2,529,023
United Technologies Corp. 56,331 3,068,350
------------
10,433,640
------------
BIOTECHNOLOGY (1.7%)
Amgen, Inc. * 90,129 5,615,938
------------
CABLE TV (0.5%)
Time Warner Cable, Inc. 49,853 1,648,140
------------
CAPITAL MARKETS (0.5%)
Morgan Stanley 56,730 1,616,805
------------
CHEMICALS (2.2%)
Dow Chemical Co. (The) 330,943 7,006,063
------------
COMMERCIAL BANKS (4.7%)
Keycorp 425,477 2,459,257
US Bancorp 243,630 4,972,488
Wells Fargo & Co. 314,326 7,688,414
------------
15,120,159
------------
COMMERCIAL SERVICES & SUPPLIES (1.1%)
Pitney Bowes, Inc. 176,033 3,635,081
------------
COMPUTERS & PERIPHERALS (2.2%)
Hewlett-Packard Co. 161,951 7,012,478
------------
CONSUMER FINANCE (0.8%)
Discover Financial Services 226,921 2,695,821
------------
DIVERSIFIED FINANCIAL SERVICES (5.6%)
Bank of America Corp. 563,307 8,331,311
JPMorgan Chase & Co. 248,418 9,601,356
------------
17,932,667
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (6.8%)
AT&T, Inc. 115,478 3,028,988
Qwest Communications International, Inc. 524,755 2,025,554
Verizon Communications, Inc. 349,250 11,200,448
Windstream Corp. 633,720 5,557,724
------------
21,812,714
------------
ELECTRIC UTILITIES (1.9%)
Edison International 91,537 2,958,476
FirstEnergy Corp. 80,271 3,307,165
------------
6,265,641
------------
ENERGY EQUIPMENT & SERVICES (3.9%)
Transocean, Ltd. * 116,886 9,314,645
Weatherford International, Ltd. * 168,992 3,170,290
------------
12,484,935
------------
Continued
66
DISCIPLINED LARGE CAP VALUE
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
FOOD & STAPLES RETAILING (2.0%)
CVS Caremark Corp. 84,496 $ 2,828,926
SUPERVALU, Inc. 233,772 3,466,839
------------
6,295,765
------------
HEALTHCARE PROVIDERS & SERVICES (2.4%)
UnitedHealth Group, Inc. 277,429 7,784,658
------------
HOTELS RESTAURANTS & LEISURE (2.8%)
Carnival Corp. 176,033 4,927,164
Darden Restaurants, Inc. 128,152 4,150,843
------------
9,078,007
------------
INDUSTRIAL CONGLOMERATES (4.7%)
3M Co. 135,194 9,533,881
General Electric Co. 408,397 5,472,520
------------
15,006,401
------------
INSURANCE (6.3%)
Allstate Corp. (The) 105,620 2,842,234
MetLife, Inc. 161,106 5,469,549
Prudential Financial, Inc. 91,537 4,052,343
Reinsurance Group of America, Inc. 83,933 3,483,220
Travelers Cos., Inc. (The) 105,620 4,549,053
------------
20,396,399
------------
LEISURE EQUIPMENT & PRODUCTS (0.9%)
Mattel, Inc. 173,217 3,045,155
------------
MACHINERY (0.8%)
Caterpillar, Inc. 56,331 2,481,944
------------
MEDIA (3.4%)
Time Warner, Inc. 199,411 5,316,297
Viacom, Inc., Class B * 250,672 5,805,564
------------
11,121,861
------------
METALS & MINING (1.6%)
Alcoa, Inc. 450,646 5,299,597
------------
MULTI-UTILITIES (3.7%)
PG&E Corp. 292,920 11,825,180
------------
OIL & GAS (15.4%)
Apache Corp. 116,886 9,812,580
Chevron Corp. 188,708 13,109,545
ConocoPhillips 206,734 9,036,343
Exxon Mobil Corp. 152,093 10,705,826
XTO Energy, Inc. 168,992 6,798,548
------------
49,462,842
------------
PHARMACEUTICALS (7.2%)
Forest Laboratories, Inc. * 307,002 7,929,862
Johnson & Johnson 150,685 9,175,210
Schering-Plough Corp. 225,323 5,973,313
------------
23,078,385
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
REAL ESTATE INVESTMENT TRUSTS (1.0%)
Annaly Capital Management, Inc. 197,157 $ 3,322,095
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.8%)
Intel Corp. 295,736 5,692,918
------------
SOFTWARE (2.7%)
Amdocs, Ltd. * 181,666 4,345,451
Microsoft Corp. 180,258 4,239,668
------------
8,585,119
------------
TEXTILES APPAREL & LUXURY GOODS (1.7%)
VF Corp. 84,496 5,466,046
------------
THRIFTS & MORTGAGE FINANCE (1.3%)
New York Community Bancorp, Inc. 387,273 4,236,767
------------
TOBACCO (2.5%)
Altria Group, Inc. 453,462 7,949,189
------------
TOTAL COMMON STOCKS 313,408,410
------------
INVESTMENTS IN AFFILIATES (2.0%)
Fifth Third Institutional Money Market Fund (a) 6,440,971 6,440,971
------------
TOTAL INVESTMENTS IN AFFILIATES 6,440,971
------------
TOTAL INVESTMENTS (COST $320,042,612) - 99.3% 319,849,381
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.7% 2,288,298
------------
NET ASSETS - 100.0% $322,137,679
============
NOTES TO SCHEDULE OF INVESTMENTS
* Non-income producing security.
(a) Investment is in Institutional Shares of underlying fund.
At July 31, 2009, Disciplined Large Cap Value's investments were in
the following countries:
COUNTRY
- --------------------------------------------------------------------------------
Guernsey, C.I. 1.4%
Switzerland 3.9%
United States 94.7%
------------
TOTAL 100.0%
============
See notes to schedules of investments
and notes to financial statements.
67
STRUCTURED LARGE CAP PLUS
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (124.7%)
AEROSPACE & DEFENSE (3.2%)
Honeywell International, Inc. 3,018 $ 104,725
Lockheed Martin Corp. (b) 3,336 249,399
Northrop Grumman Corp. (b) 22,113 985,798
Raytheon Co. (b) 15,580 731,481
United Technologies Corp. (b) 7,617 414,898
------------
2,486,301
------------
AIR FREIGHT & LOGISTICS (1.8%)
United Parcel Service, Inc., Class B (b) 25,937 1,393,595
------------
AUTO COMPONENTS (0.2%)
Goodyear Tire & Rubber Co. (The) * 9,291 158,133
------------
BEVERAGES (1.5%)
Coca-Cola Co. (The) (b) 8,702 433,708
Pepsi Bottling Group, Inc. (b) 1,192 40,468
PepsiCo, Inc. 12,990 737,183
------------
1,211,359
------------
BEVERAGES-NON ALCOHOLIC (1.1%)
Dr. Pepper Snapple Group, Inc. * (b) 35,131 864,574
------------
BIOTECHNOLOGY (1.5%)
Amgen, Inc. * (b) 1,848 115,149
Biogen Idec, Inc. * (b) 22,033 1,047,669
------------
1,162,818
------------
BUILDING PRODUCTS (1.1%)
Masco Corp. (b) 60,122 837,499
------------
CABLE TV (0.1%)
Time Warner Cable, Inc. 3,084 101,957
------------
CAPITAL MARKETS (3.6%)
Bank of New York Mellon Corp. (The) (b) 14,917 407,831
Charles Schwab Corp. (The) (b) 3,315 59,239
Goldman Sachs Group, Inc. (The) (b) 7,737 1,263,452
Invesco, Ltd. (b) 3,426 67,663
Morgan Stanley (b) 25,788 734,958
Northern Trust Corp. (b) 5,201 311,072
------------
2,844,215
------------
CHEMICALS (2.2%)
Dow Chemical Co. (The) (b) 31,326 663,172
E.I. du Pont de Nemours & Co. (b) 10,511 325,105
Eastman Chemical Co. (b) 4,405 218,752
PPG Industries, Inc. (b) 8,906 489,830
Praxair, Inc. (b) 573 44,797
------------
1,741,656
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
COMMERCIAL BANKS (1.5%)
BB&T Corp. (b) 2,316 $ 52,990
M&T Bank Corp. 7,001 408,298
Wells Fargo & Co. (b) 30,941 756,817
------------
1,218,105
------------
COMMERCIAL SERVICES & SUPPLIES (1.7%)
Avery Dennison Corp. (b) 992 26,516
Cintas Corp. (b) 4,913 123,709
Dun & Bradstreet Corp. (b) 4,510 324,675
Manpower, Inc. (b) 4,085 195,876
RR Donnelley & Sons Co. (b) 36,484 507,128
Waste Management, Inc. 5,500 154,605
------------
1,332,509
------------
COMMUNICATIONS EQUIPMENT (3.5%)
Cisco Systems, Inc. * (b) 57,664 1,269,185
Juniper Networks, Inc. * (b) 17,393 454,479
Qualcomm, Inc. 9,504 439,180
Tellabs, Inc. * (b) 107,404 622,943
------------
2,785,787
------------
COMPUTERS & PERIPHERALS (6.7%)
Apple, Inc. * (b) 8,124 1,327,380
Dell, Inc. * (b) 38,005 508,507
EMC Corp. * (b) 15,978 240,629
International Business Machines Corp. (b) 20,176 2,379,356
QLogic Corp. * (b) 33,071 431,577
Teradata Corp. * 15,711 386,019
------------
5,273,468
------------
CONSTRUCTION & ENGINEERING (0.1%)
Jacobs Engineering Group, Inc. * (b) 1,822 74,666
------------
CONSUMER FINANCE (0.5%)
American Express Co. 8,947 253,469
Capital One Financial Corp. (b) 5,065 155,495
SLM Corp. * 2,542 22,598
------------
431,562
------------
CONTAINERS & PACKAGING (1.1%)
Ball Corp. 11,780 569,681
Bemis Co., Inc. (b) 11,113 292,494
Sealed Air Corp. (b) 2,370 43,584
------------
905,759
------------
DISTRIBUTORS (0.3%)
Ingram Micro, Inc., Class A * 16,064 270,196
------------
DIVERSIFIED FINANCIAL SERVICES (4.3%)
Bank of America Corp. (b) 55,169 815,950
CME Group, Inc. 582 162,279
IntercontinentalExchange, Inc. * 4,456 419,131
JPMorgan Chase & Co. (b) 48,475 1,873,559
Moody's Corp. (b) 4,876 115,756
NASDAQ OMX Group, Inc. (The) * (b) 2,065 43,633
------------
3,430,308
------------
Continued
68
STRUCTURED LARGE CAP PLUS
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
DIVERSIFIED TELECOMMUNICATION SERVICES (3.7%)
AT&T, Inc. (b) 68,565 $ 1,798,460
CenturyTel, Inc. (b) 31,283 981,973
Verizon Communications, Inc. 4,567 146,464
------------
2,926,897
------------
E-COMMERCE/SERVICES (0.4%)
IAC/InterActiveCorp * 17,164 315,989
------------
ELECTRIC UTILITIES (3.3%)
Duke Energy Corp. (b) 7,542 116,750
Edison International 30,848 997,007
FirstEnergy Corp. 10,720 441,664
FPL Group, Inc. 17,179 973,534
Mirant Corp. * (b) 1,948 35,181
------------
2,564,136
------------
ELECTRICAL COMPONENTS & EQUIPMENT (1.2%)
Cooper Industries, Ltd., Class A (b) 12,377 407,822
Emerson Electric Co. 7,507 273,105
Rockwell Automation, Inc. (b) 6,420 265,852
------------
946,779
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.2%)
Amphenol Corp., Class A (b) 9,742 324,896
Arrow Electronics, Inc. * 13,907 358,384
Jabil Circuit, Inc. 1,882 17,239
Molex, Inc. 7,745 137,551
Tyco Electronics, Ltd. 4,030 86,524
------------
924,594
------------
ENERGY EQUIPMENT & SERVICES (2.8%)
BJ Services Co. (b) 29,513 418,494
Cameron International Corp. * (b) 2,338 73,016
Halliburton Co. (b) 24,147 533,407
Nabors Industries, Ltd. * 27,348 465,463
National Oilwell Varco, Inc. * 7,117 255,785
Rowan Cos., Inc. (b) 19,943 425,384
------------
2,171,549
------------
FOOD & STAPLES RETAILING (2.8%)
CVS Caremark Corp. (b) 19,939 667,558
Kroger Co. (The) 4,148 88,684
Safeway, Inc. (b) 29,697 562,164
Wal-Mart Stores, Inc. (b) 18,237 909,662
------------
2,228,068
------------
FOOD PRODUCTS (3.1%)
Archer-Daniels-Midland Co. (b) 38,521 1,160,253
Bunge, Ltd. (b) 455 31,836
Campbell Soup Co. (b) 949 29,448
Dean Foods Co. * (b) 17,517 371,185
Hershey Co. (The) (b) 6,154 245,852
Kraft Foods, Inc., Class A (b) 21,097 597,889
------------
2,436,463
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
GAS-DISTRIBUTION (0.4%)
AGL Resources, Inc. 6,682 $ 224,649
Energen Corp. 2,564 105,944
------------
330,593
------------
HEALTHCARE EQUIPMENT & SUPPLIES (2.2%)
Beckman Coulter, Inc. 3,523 221,914
Becton Dickinson & Co. (b) 7,685 500,678
Boston Scientific Corp. * (b) 49,994 536,935
CR Bard, Inc. (b) 1,102 81,074
Hospira, Inc. * 2,847 109,410
Medtronic, Inc. 2,811 99,566
Stryker Corp. (b) 5,281 205,325
------------
1,754,902
------------
HEALTHCARE PROVIDERS & SERVICES (4.4%)
AmerisourceBergen Corp. 8,946 176,415
Cardinal Health, Inc. (b) 1,167 38,861
CIGNA Corp. (b) 7,698 218,623
Coventry Health Care, Inc. * (b) 9,932 228,436
Humana, Inc. * 9,031 296,668
McKesson Corp. (b) 1,874 95,855
Medco Health Solutions, Inc. * (b) 15,745 832,281
Quest Diagnostics, Inc. (b) 6,874 375,458
UnitedHealth Group, Inc. (b) 19,228 539,538
WellPoint, Inc. * 12,139 638,997
------------
3,441,132
------------
HEALTHCARE TECHNOLOGY (0.4%)
Cerner Corp. * 5,293 344,468
------------
HOTELS RESTAURANTS & LEISURE (1.0%)
Darden Restaurants, Inc. 2,086 67,565
McDonald's Corp. (b) 9,594 528,246
Yum! Brands, Inc. (b) 5,872 208,221
------------
804,032
------------
HOUSEHOLD DURABLES (0.6%)
Harman International Industries, Inc. (b) 10,154 250,601
KB Home (b) 5,835 97,386
Whirlpool Corp. (b) 2,854 162,935
------------
510,922
------------
HOUSEHOLD PRODUCTS (2.3%)
Kimberly-Clark Corp. (b) 20,131 1,176,657
Procter & Gamble Co. (The) (b) 11,029 612,220
------------
1,788,877
------------
INDEPENDENT POWER PRODUCERS & ENERGY
TRADERS (1.1%)
AES Corp. (The) * (b) 53,099 679,136
Constellation Energy Group, Inc. 6,834 196,136
------------
875,272
------------
Continued
69
STRUCTURED LARGE CAP PLUS
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
INDUSTRIAL CONGLOMERATES (1.4%)
General Electric Co. (b) 83,090 $ 1,113,406
------------
INSURANCE (3.1%)
AON Corp. (b) 4,739 186,954
Assurant, Inc. 16,176 412,811
Lincoln National Corp. (b) 14,951 316,812
MetLife, Inc. 10,995 373,280
Principal Financial Group, Inc. (b) 344 8,153
Prudential Financial, Inc. (b) 10,377 459,390
Travelers Cos., Inc. (The) 12,202 525,540
Unum Group (b) 7,930 148,846
WR Berkley Corp. (b) 962 22,347
------------
2,454,133
------------
INTERNET & CATALOG RETAIL (1.0%)
Amazon.com, Inc. * (b) 3,839 329,233
Expedia, Inc. * 21,363 442,428
------------
771,661
------------
INTERNET SOFTWARE & SERVICES (1.1%)
eBay, Inc. * 11,446 243,228
Google, Inc., Class A * (b) 1,386 614,067
VeriSign, Inc. * (b) 1,457 29,781
------------
887,076
------------
IT SERVICES (2.3%)
Automatic Data Processing, Inc. (b) 3,624 134,994
Computer Sciences Corp. * (b) 20,636 994,036
Fidelity National Information Services, Inc. (b) 28,510 667,704
------------
1,796,734
------------
LIFE SCIENCES TOOLS & SERVICES (0.9%)
PerkinElmer, Inc. (b) 28,106 495,509
Thermo Fisher Scientific, Inc. * (b) 3,928 177,860
------------
673,369
------------
MACHINERY (2.9%)
Dover Corp. (b) 27,119 922,317
Illinois Tool Works, Inc. (b) 10,621 430,682
ITT Corp. (b) 10,511 519,243
Parker Hannifin Corp. 9,364 414,638
------------
2,286,880
------------
MEDIA (3.1%)
CBS Corp., Class B 5,976 48,943
Comcast Corp., Class A (b) 6,524 96,947
DIRECTV Group, Inc. (The) * (b) 15,592 403,833
Liberty Global, Inc., Class A * (b) 2,979 62,410
McGraw-Hill Cos., Inc. (The) (b) 12,735 399,242
Meredith Corp. 8,414 222,719
Time Warner, Inc. (b) 45,438 1,211,377
------------
2,445,471
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
METALS & MINING (0.2%)
United States Steel Corp. (b) 3,976 $ 158,046
------------
MULTILINE RETAIL (1.6%)
Big Lots, Inc. * 7,839 180,610
Family Dollar Stores, Inc. 23,102 725,865
Kohl's Corp. * (b) 4,455 216,290
Macy's, Inc. (b) 3,682 51,217
Sears Holdings Corp. * 926 61,431
------------
1,235,413
------------
MULTI-UTILITIES (1.8%)
NiSource, Inc. (b) 44,389 572,174
Sempra Energy (b) 16,601 870,391
------------
1,442,565
------------
OIL & GAS (11.9%)
Anadarko Petroleum Corp. (b) 24,076 1,160,463
Chevron Corp. (b) 19,197 1,333,616
ConocoPhillips (b) 26,056 1,138,908
EnCana Corp. 6,401 343,414
Exxon Mobil Corp. (b) 44,762 3,150,797
Hess Corp. 3,079 169,961
Marathon Oil Corp. (b) 9,842 317,404
Murphy Oil Corp. (b) 9,478 551,620
Noble Energy, Inc. (b) 4,223 258,110
Peabody Energy Corp. (b) 1,131 37,447
Sunoco, Inc. 7,342 181,274
Talisman Energy, Inc. 2,372 36,505
Tesoro Corp. (b) 22,114 289,472
Valero Energy Corp. (b) 20,772 373,896
Williams Cos., Inc. (The) (b) 3,967 66,209
------------
9,409,096
------------
OIL GAS & CONSUMABLE FUELS (0.5%)
Nexen, Inc. (b) 17,317 360,367
------------
PAPER & FOREST PRODUCTS (0.3%)
MeadWestvaco Corp. (b) 10,907 212,577
------------
PERSONAL PRODUCTS (0.2%)
Avon Products, Inc. (b) 2,271 73,535
Estee Lauder Cos., Inc. (The), Class A (b) 3,380 123,167
------------
196,702
------------
PHARMACEUTICALS (9.1%)
Bristol-Myers Squibb Co. (b) 60,019 1,304,813
Eli Lilly & Co. (b) 34,278 1,195,959
Johnson & Johnson 8,766 533,762
Mylan, Inc. * (b) 70,161 925,424
Pfizer, Inc. (b) 116,363 1,853,662
Schering-Plough Corp. (b) 14,311 379,385
Watson Pharmaceuticals, Inc. * 27,066 940,002
------------
7,133,007
------------
Continued
70
STRUCTURED LARGE CAP PLUS
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
REAL ESTATE INVESTMENT TRUSTS (0.7%)
Host Hotels & Resorts, Inc. 14,533 $ 131,960
ProLogis (b) 43,542 382,734
------------
514,694
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (4.5%)
Analog Devices, Inc. (b) 5,072 138,821
Intel Corp. (b) 74,344 1,431,122
LSI Corp. * (b) 50,345 260,787
Novellus Systems, Inc. * (b) 21,407 418,935
Texas Instruments, Inc. (b) 52,498 1,262,577
------------
3,512,242
------------
SOFTWARE (4.7%)
BMC Software, Inc. * 5,776 196,557
CA, Inc. (b) 19,259 407,135
Intuit, Inc. * 1,802 53,519
Microsoft Corp. (b) 73,600 1,731,072
Oracle Corp. (b) 15,035 332,725
Symantec Corp. * (b) 63,763 951,982
------------
3,672,990
------------
SPECIALTY RETAIL (3.3%)
AutoNation, Inc. * (b) 12,223 252,772
AutoZone, Inc. * (b) 3,589 551,163
Gap, Inc. (The) (b) 24,136 393,899
Home Depot, Inc. (b) 42,299 1,097,236
Lowe's Cos., Inc. (b) 2,078 46,672
RadioShack Corp. (b) 15,158 235,100
------------
2,576,842
------------
TEXTILES APPAREL & LUXURY GOODS (0.3%)
Polo Ralph Lauren Corp. 3,444 217,144
------------
THRIFTS & MORTGAGE FINANCE (0.1%)
People's United Financial, Inc. (b) 3,095 50,294
------------
TOBACCO (2.6%)
Philip Morris International, Inc. (b) 29,574 1,378,149
Reynolds American, Inc. (b) 15,981 695,333
------------
2,073,482
------------
TRADING COMPANIES & DISTRIBUTORS (0.1%)
WW Grainger, Inc. (b) 1,135 102,048
------------
WIRELESS TELECOMMUNICATION SERVICES (0.1%)
Sprint Nextel Corp. * 25,136 100,544
------------
TOTAL COMMON STOCKS 98,285,923
------------
Continued
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (3.8%)
Fifth Third Institutional Money Market Fund (a) 2,982,162 $ 2,982,162
------------
TOTAL INVESTMENTS IN AFFILIATES 2,982,162
------------
TOTAL INVESTMENTS (COST $96,797,997) - 128.5% 101,268,085
SECURITIES SOLD SHORT
(PROCEEDS $18,942,885) - (28.8)% (22,710,386)
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 237,553
------------
NET ASSETS - 100.0% $ 78,795,252
============
Continued
71
STRUCTURED LARGE CAP PLUS
SCHEDULE OF INVESTMENTS SOLD SHORT
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (28.8)%
AEROSPACE & DEFENSE (0.4)%
Boeing Co. (The) (6,732) $ (288,870)
------------
AIRLINES (0.4)%
Delta Air Lines, Inc. * (28,973) (200,783)
Southwest Airlines Co. (17,594) (138,113)
------------
(338,896)
------------
AUTOMOTIVE RETAIL (0.2)%
Copart, Inc. * (4,000) (141,240)
------------
BEVERAGES (0.1)%
Constellation Brands, Inc.,
Class A * (3,673) (50,173)
------------
BIOTECHNOLOGY (0.7)%
Celgene Corp. * (10,064) (573,245)
------------
CAPITAL MARKETS (0.5)%
Legg Mason, Inc. (13,104) (368,747)
------------
COMMERCIAL SERVICES (0.2)%
Global Payments, Inc. (4,807) (203,336)
------------
COMMERCIAL SERVICES & SUPPLIES (1.2)%
Corrections Corp. of America * (3,419) (59,012)
Republic Services, Inc. (33,263) (884,796)
------------
(943,808)
------------
COMMUNICATIONS EQUIPMENT (0.1)%
Ciena Corp. * (10,795) (120,472)
------------
COMPUTERS & PERIPHERALS (0.3)%
SanDisk Corp. * (15,970) (284,585)
------------
DIVERSIFIED CONSUMER SERVICES (0.5)%
DeVry, Inc. (8,149) (405,331)
------------
DIVERSIFIED FINANCIAL SERVICES (0.5)%
Leucadia National Corp. * (16,348) (400,526)
------------
DIVERSIFIED TELECOMMUNICATION SERVICES(0.6)%
Windstream Corp. (59,082) (518,149)
------------
ELECTRIC UTILITIES (2.0)%
Great Plains Energy, Inc. (56,744) (903,932)
Northeast Utilities (28,973) (666,669)
------------
(1,570,601)
------------
ENERGY (0.5)%
First Solar, Inc. * (2,703) (417,316)
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ENERGY EQUIPMENT & SERVICES (0.2)%
Smith International, Inc. (8,011) $ (201,316)
------------
FOOD (0.9)%
Ralcorp Holdings, Inc. * (10,986) (697,721)
------------
FOOD & STAPLES RETAILING (1.1)%
Costco Wholesale Corp. (14,657) (725,521)
SUPERVALU, Inc. (7,978) (118,314)
------------
(843,835)
------------
FOOD PRODUCTS (1.3)%
JM Smucker Co. (The) (17,063) (853,662)
Sara Lee Corp. (13,796) (146,789)
------------
(1,000,451)
------------
GAS-DISTRIBUTION (1.2)%
EQT Corp. (24,083) (924,306)
Questar Corp. (1,491) (49,307)
------------
(973,613)
------------
HEALTHCARE EQUIPMENT & SUPPLIES (0.9)%
DENTSPLY International, Inc. (9,749) (325,129)
Varian Medical Systems, Inc. * (12,149) (428,495)
------------
(753,624)
------------
HEALTHCARE PROVIDERS & SERVICES (1.3)%
DaVita, Inc. * (9,385) (466,435)
Patterson Cos., Inc. * (21,037) (533,498)
------------
(999,933)
------------
HOTELS RESTAURANTS & LEISURE (0.5)%
Burger King Holdings, Inc. (21,482) (365,624)
------------
HOUSEHOLD DURABLES (0.2)%
Lennar Corp., Class A (12,153) (143,892)
------------
INSURANCE (0.5)%
Allstate Corp. (The) (3,751) (100,939)
Marsh & McLennan Cos., Inc. (15,316) (312,753)
------------
(413,692)
------------
LIFE SCIENCES TOOLS & SERVICES (1.3)%
Techne Corp. (7,213) (460,334)
Waters Corp. * (11,369) (571,292)
------------
(1,031,626)
------------
MACHINERY (0.5)%
Ingersoll Rand PLC (11,306) (326,517)
Manitowoc Co., Inc. (The) (14,037) (86,749)
------------
(413,266)
------------
Continued
72
STRUCTURED LARGE CAP PLUS
SCHEDULE OF INVESTMENTS SOLD SHORT, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
METALS & MINING (0.2)%
AK Steel Holding Corp. (7,224) $ (142,096)
------------
MULTI-UTILITIES (0.6)%
Integrys Energy Group, Inc. (13,478) (455,287)
------------
OIL & GAS (1.7)%
Cabot Oil & Gas Corp. (7,121) (250,161)
Chesapeake Energy Corp. (5,351) (114,725)
Consol Energy, Inc. (1,019) (36,205)
Devon Energy Corp. (11,467) (666,118)
Spectra Energy Corp. (14,399) (264,366)
------------
(1,331,575)
------------
OIL COMPANY-EXPLORATION & PRODUCTION(0.6)%
Newfield Exploration Co. * (5,623) (221,153)
PetroHawk Energy Corp. * (9,630) (233,816)
------------
(454,969)
------------
OIL COMPANY-INTEGRATED (0.3)%
Suncor Energy, Inc. (6,474) (210,276)
------------
PAPER & FOREST PRODUCTS (0.1)%
Weyerhaeuser Co. (1,633) (57,220)
------------
PHARMACEUTICALS (1.5)%
King Pharmaceuticals, Inc. * (80,503) (730,162)
Merck & Co., Inc. (14,043) (421,431)
------------
(1,151,593)
------------
PIPELINES (0.3)%
TransCanada Corp. (9,932) (282,565)
------------
PROFESSIONAL SERVICES (0.3)%
FTI Consulting, Inc. * (3,994) (217,393)
------------
REAL ESTATE INVESTMENT TRUSTS (0.7)%
Boston Properties, Inc. (3,027) (160,128)
Health Care REIT, Inc. (9,683) (387,901)
------------
(548,029)
------------
RETAIL (0.1)%
Wendy's/Arby's Group, Inc., Class A (13,651) (62,522)
------------
ROAD & RAIL (0.1)%
Burlington Northern Santa Fe Corp. (574) (45,111)
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.7)%
Applied Materials, Inc. (17,430) (240,534)
Microchip Technology, Inc. (33,931) (913,762)
Nvidia Corp. * (13,633) (176,275)
------------
(1,330,571)
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
SOFTWARE (1.1)%
ANSYS, Inc. * (15,232) $ (476,153)
Electronic Arts, Inc. * (18,990) (407,715)
------------
(883,868)
------------
SPECIALTY RETAIL (0.5)%
Tiffany & Co. (13,448) (401,154)
------------
TRADING COMPANIES & DISTRIBUTORS (0.1)%
Fastenal Co. (1,934) (68,792)
------------
WIRELESS EQUIPMENT (0.6)%
SBA Communications Corp., Class A * (17,499) (456,549)
------------
WIRELESS TELECOMMUNICATION SERVICES (0.2)%
American Tower Corp., Class A * (4,310) (146,928)
------------
TOTAL COMMON STOCKS (22,710,386)
------------
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $18,942,885) - (28.8)% $(22,710,386)
============
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 short
sales.
See notes to schedules of investments
and notes to financial statements.
73
EQUITY INDEX
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS (97.6%)
AEROSPACE & DEFENSE (2.5%)
Boeing Co. (The) 21,840 $ 937,154
General Dynamics Corp. 11,579 641,361
Goodrich Corp. 3,725 191,316
Honeywell International, Inc. 22,371 776,274
L-3 Communications Holdings, Inc. 3,505 264,628
Lockheed Martin Corp. 9,824 734,442
Northrop Grumman Corp. 9,728 433,674
Precision Castparts Corp. 4,212 336,160
Raytheon Co. 11,851 556,404
Rockwell Collins, Inc. 4,763 200,999
United Technologies Corp. 28,331 1,543,190
------------
6,615,602
------------
AIR FREIGHT & LOGISTICS (1.0%)
CH Robinson Worldwide, Inc. 5,099 278,048
Expeditors International
Washington, Inc. 6,386 216,677
FedEx Corp. 9,364 635,254
United Parcel Service, Inc., Class B 29,925 1,607,870
------------
2,737,849
------------
AIRLINES (0.1%)
Southwest Airlines Co. 22,280 174,898
------------
AUTO COMPONENTS (0.2%)
Goodyear Tire & Rubber Co. (The) * 7,273 123,787
Johnson Controls, Inc. 17,872 462,527
------------
586,314
------------
AUTOMOBILES (0.4%)
Ford Motor Co. * 96,787 774,296
Harley-Davidson, Inc. 7,051 159,353
------------
933,649
------------
BEVERAGES (2.4%)
Brown-Forman Corp., Class B 2,936 129,037
Coca-Cola Co. (The) 59,875 2,984,170
Coca-Cola Enterprises, Inc. 9,537 179,200
Constellation Brands, Inc.,
Class A * 5,916 80,813
Molson Coors Brewing Co., Class B 4,483 202,676
Pepsi Bottling Group, Inc. 4,110 139,535
PepsiCo, Inc. 46,819 2,656,978
------------
6,372,409
------------
BEVERAGES-NON ALCOHOLIC (0.1%)
Dr. Pepper Snapple Group, Inc. * 7,635 187,897
------------
BIOTECHNOLOGY (1.9%)
Amgen, Inc. * 30,446 1,897,090
Biogen Idec, Inc. * 8,678 412,639
Celgene Corp. * 13,843 788,497
Cephalon, Inc. * 2,220 130,203
Genzyme Corp. * 8,113 420,984
Gilead Sciences, Inc. * 27,259 1,333,783
------------
4,983,196
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
BUILDING PRODUCTS (0.1%)
Life Technologies Corp. * 5,253 $ 239,169
Masco Corp. 10,806 150,528
------------
389,697
------------
CABLE TV (0.1%)
Time Warner Cable, Inc. 10,596 350,304
------------
CAPITAL MARKETS (3.0%)
Ameriprise Financial, Inc. 7,664 213,059
Bank of New York Mellon Corp. (The) 35,952 982,928
Charles Schwab Corp. (The) 28,242 504,685
E*Trade Financial Corp. * 30,291 45,436
Federated Investors, Inc., Class B 2,692 69,804
Franklin Resources, Inc. 4,531 401,809
Goldman Sachs Group, Inc. (The) 15,140 2,472,362
Invesco, Ltd. 12,370 244,307
Janus Capital Group, Inc. 4,850 66,251
Legg Mason, Inc. 4,304 121,115
Morgan Stanley 40,651 1,158,553
Northern Trust Corp. 7,247 433,443
SCANA Corp. 3,664 129,522
State Street Corp. 14,849 746,905
T Rowe Price Group, Inc. 7,683 358,873
------------
7,949,052
------------
CHEMICALS (1.9%)
Air Products & Chemicals, Inc. 6,310 470,726
CF Industries Holdings, Inc. 1,456 114,937
Dow Chemical Co. (The) 32,357 684,998
E.I. du Pont de Nemours & Co. 27,175 840,523
Eastman Chemical Co. 2,185 108,507
Ecolab, Inc. 5,050 209,626
International Flavors & Fragrances, Inc. 2,367 83,460
Monsanto Co. 16,413 1,378,692
PPG Industries, Inc. 4,947 272,085
Praxair, Inc. 9,247 722,930
Sigma-Aldrich Corp. 3,672 186,354
------------
5,072,838
------------
COMMERCIAL BANKS (2.5%)
BB&T Corp. 19,455 445,130
Comerica, Inc. 4,545 108,353
First Horizon National Corp. * 6,463 82,856
Huntington Bancshares, Inc. 16,348 66,863
Keycorp 23,573 136,252
M&T Bank Corp. 2,460 143,467
Marshall & Ilsley Corp. 10,596 64,000
PNC Financial Services Group, Inc. 13,843 507,484
Regions Financial Corp. 34,737 153,538
SunTrust Banks, Inc. 14,991 292,325
US Bancorp 57,074 1,164,880
Wells Fargo & Co. 140,027 3,425,060
Zions Bancorporation 3,468 47,096
------------
6,637,304
------------
Continued
74
EQUITY INDEX
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
COMMERCIAL SERVICES (0.1%)
Quanta Services, Inc. * 5,858 $ 136,550
------------
COMMERCIAL SERVICES & SUPPLIES (0.7%)
Avery Dennison Corp. 3,390 90,615
Cintas Corp. 3,952 99,511
Dun & Bradstreet Corp. 1,599 115,112
Equifax, Inc. 3,796 98,886
Iron Mountain, Inc. * 5,417 158,230
Monster Worldwide, Inc. * 3,791 49,397
Pitney Bowes, Inc. 6,207 128,174
Republic Services, Inc. 9,683 257,568
Robert Half International, Inc. 4,596 113,935
RR Donnelley & Sons Co. 6,172 85,791
Stericycle, Inc. * 2,554 130,765
Waste Management, Inc. 14,797 415,944
------------
1,743,928
------------
COMMUNICATIONS EQUIPMENT (3.0%)
Ciena Corp. * 2,742 30,601
Cisco Systems, Inc. * 173,465 3,817,965
Corning, Inc. 46,732 794,444
Harris Corp. 3,982 124,676
JDS Uniphase Corp. * 6,630 38,852
Juniper Networks, Inc. * 15,734 411,129
Motorola, Inc. 68,943 493,632
Qualcomm, Inc. 49,774 2,300,056
Tellabs, Inc. * 11,902 69,032
------------
8,080,387
------------
COMPUTERS & PERIPHERALS (5.5%)
Apple, Inc. * 26,830 4,383,754
Dell, Inc. * 52,300 699,774
EMC Corp. * 60,540 911,732
Hewlett-Packard Co. 71,765 3,107,424
International Business Machines
Corp. 39,740 4,686,538
Lexmark International, Inc.,
Class A * 2,348 33,999
NetApp, Inc. * 9,947 223,410
QLogic Corp. * 3,574 46,641
SanDisk Corp. * 6,822 121,568
Sun Microsystems, Inc. * 22,443 205,802
Teradata Corp. * 5,194 127,617
Western Digital Corp. * 6,693 202,463
------------
14,750,722
------------
CONSTRUCTION & ENGINEERING (0.2%)
Fluor Corp. 5,409 285,595
Jacobs Engineering Group, Inc. * 3,713 152,159
------------
437,754
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
CONSTRUCTION MATERIALS (0.1%)
Vulcan Materials Co. 3,665 $ 174,014
------------
CONSUMER FINANCE (0.7%)
American Express Co. 35,711 1,011,693
Capital One Financial Corp. 13,589 417,182
Discover Financial Services 16,118 191,482
SLM Corp. * 14,060 124,993
------------
1,745,350
------------
CONTAINERS & PACKAGING (0.2%)
Ball Corp. 2,827 136,714
Bemis Co., Inc. 3,005 79,092
Owens-Illinois, Inc. * 5,061 171,770
Pactiv Corp. * 3,968 99,914
Sealed Air Corp. 4,770 87,720
------------
575,210
------------
DISTRIBUTORS (0.1%)
Genuine Parts Co. 4,795 169,839
------------
DIVERSIFIED CONSUMER SERVICES (0.2%)
Apollo Group, Inc., Class A * 3,241 223,759
DeVry, Inc. 1,852 92,118
H&R Block, Inc. 10,215 170,488
------------
486,365
------------
DIVERSIFIED FINANCIAL SERVICES (3.8%)
Bank of America Corp. (b) 259,857 3,843,285
Citigroup, Inc. (b) 165,794 525,567
CME Group, Inc. 1,996 556,545
IntercontinentalExchange, Inc. * 2,190 205,991
JPMorgan Chase & Co. 117,325 4,534,611
Leucadia National Corp. * 5,451 133,550
Moody's Corp. 5,742 136,315
NASDAQ OMX Group, Inc. (The) * 4,134 87,351
NYSE Euronext 7,819 210,722
------------
10,233,937
------------
DIVERSIFIED TELECOMMUNICATION
SERVICES (3.0%)
AT&T, Inc. (b) 177,438 4,654,199
CenturyTel, Inc. 8,911 279,716
Frontier Communications Corp. 9,395 65,765
Qwest Communications International,
Inc. 44,492 171,739
Verizon Communications, Inc. 85,428 2,739,676
Windstream Corp. 13,136 115,203
------------
8,026,298
------------
Continued
75
EQUITY INDEX
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ELECTRIC UTILITIES (2.2%)
Allegheny Energy, Inc. 5,095 $ 128,445
American Electric Power Co., Inc. 14,338 443,905
Duke Energy Corp. 38,709 599,215
Edison International 9,799 316,704
Entergy Corp. 5,898 473,786
Exelon Corp. 19,812 1,007,638
FirstEnergy Corp. 9,168 377,722
FPL Group, Inc. 12,354 700,101
Northeast Utilities 5,267 121,194
Pepco Holdings, Inc. 6,616 95,138
Pinnacle West Capital Corp. 3,040 97,158
PPL Corp. 11,310 382,165
Progress Energy, Inc. 8,392 330,981
Southern Co. 23,531 738,873
------------
5,813,025
------------
ELECTRICAL COMPONENTS & EQUIPMENT (0.4%)
Cooper Industries, Ltd., Class A 5,007 164,981
Emerson Electric Co. 22,599 822,151
Rockwell Automation, Inc. 4,265 176,614
------------
1,163,746
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.2%)
Agilent Technologies, Inc. * 10,326 239,770
Amphenol Corp., Class A 5,152 171,819
FLIR Systems, Inc. * 4,519 97,113
Jabil Circuit, Inc. 6,429 58,890
Molex, Inc. 4,169 74,041
------------
641,633
------------
ENERGY EQUIPMENT & SERVICES (1.7%)
Baker Hughes, Inc. 9,317 377,339
BJ Services Co. 8,784 124,557
Cameron International Corp. * 6,525 203,776
Diamond Offshore Drilling, Inc. 2,090 187,828
ENSCO International, Inc. 4,265 161,601
FMC Technologies, Inc. * 3,717 161,690
Halliburton Co. 26,980 595,988
Nabors Industries, Ltd. * 8,512 144,874
National Oilwell Varco, Inc. * 12,576 451,981
Rowan Cos., Inc. 3,401 72,543
Schlumberger, Ltd. 35,981 1,924,984
Smith International, Inc. 6,595 165,732
------------
4,572,893
------------
FOOD & STAPLES RETAILING (2.9%)
Costco Wholesale Corp. 13,053 646,124
CVS Caremark Corp. 43,785 1,465,922
Kroger Co. (The) 19,619 419,454
Safeway, Inc. 12,809 242,474
SUPERVALU, Inc. 6,364 94,378
SYSCO Corp. 17,741 421,526
Walgreen Co. 29,825 926,066
Wal-Mart Stores, Inc. 67,114 3,347,646
Whole Foods Market, Inc. * 4,224 102,179
------------
7,665,769
------------
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
FOOD PRODUCTS (1.7%)
Archer-Daniels-Midland Co. 19,308 $ 581,557
Campbell Soup Co. 6,005 186,335
ConAgra Foods, Inc. 13,450 264,023
Dean Foods Co. * 5,324 112,816
General Mills, Inc. 9,894 582,856
Hershey Co. (The) 4,984 199,111
HJ Heinz Co. 9,462 363,909
Hormel Foods Corp. 2,100 75,411
JM Smucker Co. (The) 3,562 178,207
Kellogg Co. 7,593 360,667
Kraft Foods, Inc., Class A 44,292 1,255,235
McCormick & Co., Inc. 3,919 126,270
Sara Lee Corp. 20,921 222,599
Tyson Foods, Inc., Class A 9,085 103,842
------------
4,612,838
------------
GAS-DISTRIBUTION (0.1%)
EQT Corp. 3,937 151,102
Nicor, Inc. 1,360 49,558
Questar Corp. 5,235 173,122
------------
373,782
------------
HEALTHCARE EQUIPMENT & SUPPLIES (1.9%)
Baxter International, Inc. 18,196 1,025,709
Becton Dickinson & Co. 7,204 469,341
Boston Scientific Corp. * 45,304 486,565
CR Bard, Inc. 2,986 219,680
DENTSPLY International, Inc. 4,467 148,974
Hospira, Inc. * 4,826 185,463
Intuitive Surgical, Inc. * 1,138 258,690
Medtronic, Inc. 33,630 1,191,175
St. Jude Medical, Inc. * 10,416 392,787
Stryker Corp. 7,166 278,614
Varian Medical Systems, Inc. * 3,770 132,968
Zimmer Holdings, Inc. * 6,469 301,455
------------
5,091,421
------------
HEALTHCARE PROVIDERS & SERVICES (2.1%)
Aetna, Inc. 13,440 362,477
AmerisourceBergen Corp. 9,082 179,097
Cardinal Health, Inc. 10,829 360,606
CIGNA Corp. 8,204 232,994
Coventry Health Care, Inc. * 4,464 102,672
DaVita, Inc. * 3,110 154,567
Express Scripts, Inc. * 8,155 571,176
Humana, Inc. * 5,101 167,568
Laboratory Corp. of America
Holdings * 3,257 218,838
McKesson Corp. 8,163 417,537
Medco Health Solutions, Inc. * 14,507 766,840
Patterson Cos., Inc. * 2,751 69,765
Quest Diagnostics, Inc. 4,516 246,664
Tenet Healthcare Corp. * 12,558 49,604
UnitedHealth Group, Inc. 35,774 1,003,818
WellPoint, Inc. * 14,575 767,228
------------
5,671,451
------------
Continued
76
EQUITY INDEX
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
HEALTHCARE TECHNOLOGY (0.0%)
IMS Health, Inc. 5,467 $ 65,604
------------
HOTELS RESTAURANTS & LEISURE (1.5%)
Carnival Corp. 13,177 368,824
Darden Restaurants, Inc. 4,124 133,576
International Game Technology 8,911 175,992
Marriott International, Inc.,
Class A 8,928 192,305
McDonald's Corp. 33,179 1,826,836
Starbucks Corp. * 22,132 391,737
Starwood Hotels & Resorts
Worldwide, Inc. 5,614 132,547
Wyndham Worldwide Corp. 5,356 74,716
Wynn Resorts, Ltd. * 2,036 104,182
Yum! Brands, Inc. 13,882 492,256
------------
3,892,971
------------
HOUSEHOLD DURABLES (0.4%)
Black & Decker Corp. 1,808 67,981
Centex Corp. * 3,744 40,847
DR Horton, Inc. 8,292 96,104
Fortune Brands, Inc. 4,517 178,738
Harman International Industries, Inc. 2,085 51,458
KB Home 2,217 37,002
Leggett & Platt, Inc. 4,714 81,788
Lennar Corp., Class A 4,246 50,272
Newell Rubbermaid, Inc. 8,349 107,451
Pulte Homes, Inc. 6,454 73,382
Snap-On, Inc. 1,732 61,711
Stanley Works (The) 2,378 95,477
Whirlpool Corp. 2,220 126,740
------------
1,068,951
------------
HOUSEHOLD PRODUCTS (2.6%)
Clorox Co. 4,182 255,144
Colgate-Palmolive Co. 15,024 1,088,338
Kimberly-Clark Corp. 12,457 728,112
Procter & Gamble Co. (The) 87,658 4,865,896
------------
6,937,490
------------
INDEPENDENT POWER PRODUCERS & ENERGY
TRADERS (0.2%)
AES Corp. (The) * 20,050 256,440
Constellation Energy Group, Inc. 5,990 171,913
Dynegy, Inc., Class A * 15,234 30,620
------------
458,973
------------
INDUSTRIAL CONGLOMERATES (2.2%)
3M Co. 20,883 1,472,669
General Electric Co. (b) 318,475 4,267,565
Textron, Inc. 8,084 108,649
------------
5,848,883
------------
Continued
SHARES VALUE
------------- ------------
Common Stocks, continued
INSURANCE (2.4%)
Aflac, Inc. 14,058 $ 532,236
Allstate Corp. (The) 16,131 434,085
American International Group, Inc. 4,046 53,165
AON Corp. 8,325 328,421
Assurant, Inc. 3,541 90,366
Chubb Corp. 10,589 489,000
Cincinnati Financial Corp. 4,889 118,069
Genworth Financial, Inc., Class A 13,028 89,893
Hartford Financial Services Group, Inc. 9,787 161,388
Lincoln National Corp. 8,905 188,697
Loews Corp. 10,863 326,107
Marsh & McLennan Cos., Inc. 15,715 320,900
MBIA, Inc. * 5,126 21,478
MetLife, Inc. 24,616 835,713
Principal Financial Group, Inc. 9,343 221,429
Progressive Corp. (The) * 20,481 319,094
Prudential Financial, Inc. 13,920 616,239
Torchmark Corp. 2,488 97,181
Travelers Cos., Inc. (The) 17,606 758,291
Unum Group 9,963 187,006
XL Capital, Ltd., Class A 10,288 144,855
------------
6,333,613
------------
INTERNET & CATALOG RETAIL (0.4%)
Amazon.com, Inc. * 9,691 831,100
Expedia, Inc. * 6,328 131,053
------------
962,153
------------
INTERNET SOFTWARE & SERVICES (1.8%)
Akamai Technologies, Inc. * 5,198 85,455
eBay, Inc. * 32,502 690,668
Google, Inc., Class A * 7,221 3,199,264
VeriSign, Inc. * 5,800 118,552
Yahoo!, Inc. * 41,951 600,738
------------
4,694,677
------------
IT SERVICES (1.0%)
Affiliated Computer Services, Inc.,
Class A * 2,935 139,148
Automatic Data Processing, Inc. 15,086 561,953
Cognizant Technology Solutions
Corp., Class A * 8,785 259,948
Computer Sciences Corp. * 4,556 219,463
Convergys Corp. * 3,689 39,509
Fidelity National Information
Services, Inc. 5,752 134,712
Fiserv, Inc. * 4,680 221,879
Mastercard, Inc., Class A 2,179 422,791
Paychex, Inc. 9,658 255,937
Total System Services, Inc. 5,929 87,038
Western Union Co. (The) 21,091 368,671
------------
2,711,049
------------
Continued
77
EQUITY INDEX
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
LEISURE EQUIPMENT & PRODUCTS (0.1%)
Eastman Kodak Co. 8,066 $ 23,956
Hasbro, Inc. 3,743 99,190
Mattel, Inc. 10,783 189,565
------------
312,711
------------
LIFE SCIENCES TOOLS & SERVICES (0.3%)
Millipore Corp. * 1,667 116,023
PerkinElmer, Inc. 3,506 61,811
Thermo Fisher Scientific, Inc. * 12,580 569,622
Waters Corp. * 2,899 145,675
------------
893,131
------------
MACHINERY (1.5%)
Caterpillar, Inc. 18,096 797,310
Cummins, Inc. 6,069 261,028
Danaher Corp. 7,669 469,649
Deere & Co. 12,714 556,110
Dover Corp. 5,594 190,252
Eaton Corp. 4,980 258,562
Flowserve Corp. 1,685 136,097
Illinois Tool Works, Inc. 11,563 468,880
ITT Corp. 5,474 270,416
Manitowoc Co., Inc. (The) 3,920 24,226
PACCAR, Inc. 10,922 378,447
Pall Corp. 3,547 106,694
Parker Hannifin Corp. 4,827 213,739
------------
4,131,410
------------
MEDIA (2.4%)
CBS Corp., Class B 20,435 167,363
Comcast Corp., Class A 86,716 1,288,600
DIRECTV Group, Inc. (The) * 15,763 408,262
Gannett Co., Inc. 6,991 48,937
Interpublic Group of Cos., Inc. * 14,387 74,956
McGraw-Hill Cos., Inc. (The) 9,458 296,508
Meredith Corp. 1,083 28,667
New York Times Co. (The), Class A 3,508 27,608
News Corp., Class A 69,179 714,619
Omnicom Group, Inc. 9,348 317,832
Scripps Networks Interactive, Inc.,
Class A 2,721 87,834
Time Warner, Inc. 35,983 959,307
Viacom, Inc., Class B * 18,238 422,392
Walt Disney Co. (The) 55,841 1,402,726
Washington Post Co. (The), Class B 181 81,721
------------
6,327,332
------------
METALS & MINING (0.9%)
AK Steel Holding Corp. 3,287 64,655
Alcoa, Inc. 29,301 344,580
Allegheny Technologies, Inc. 2,948 79,832
Freeport-McMoRan Copper &
Gold, Inc. 12,383 746,695
Newmont Mining Corp. 14,719 608,631
Nucor Corp. 9,451 420,286
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
METALS & MINING, CONTINUED
Titanium Metals Corp. 2,560 $ 21,427
United States Steel Corp. 4,311 171,362
------------
2,457,468
------------
MULTILINE RETAIL (0.8%)
Big Lots, Inc. * 2,483 57,208
Family Dollar Stores, Inc. 4,218 132,529
JC Penney Co., Inc. 7,088 213,703
Kohl's Corp. * 9,184 445,883
Macy's, Inc. 12,648 175,934
Nordstrom, Inc. 4,815 127,309
Sears Holdings Corp. * 1,623 107,670
Target Corp. 22,624 986,859
------------
2,247,095
------------
MULTI-UTILITIES (1.3%)
Ameren Corp. 6,423 163,337
Centerpoint Energy, Inc. 10,504 126,573
CMS Energy Corp. 6,822 88,277
Consolidated Edison, Inc. 8,252 324,799
Dominion Resources, Inc. 17,743 599,713
DTE Energy Co. 4,928 169,819
Integrys Energy Group, Inc. 2,298 77,626
NiSource, Inc. 8,258 106,446
PG&E Corp. 11,078 447,219
Public Service Enterprise Group, Inc. 15,217 493,792
Sempra Energy 7,347 385,203
TECO Energy, Inc. 6,402 86,363
Wisconsin Energy Corp. 3,516 151,082
Xcel Energy, Inc. 13,704 273,258
------------
3,493,507
------------
OFFICE ELECTRONICS (0.1%)
Xerox Corp. 26,008 213,006
------------
OIL & GAS (10.0%)
Anadarko Petroleum Corp. 15,013 723,627
Apache Corp. 10,081 846,300
Cabot Oil & Gas Corp. 3,117 109,500
Chesapeake Energy Corp. 16,949 363,387
Chevron Corp. 60,289 4,188,277
ConocoPhillips 44,557 1,947,586
Consol Energy, Inc. 5,433 193,034
Denbury Resources, Inc. * 7,484 124,234
Devon Energy Corp. 13,350 775,501
El Paso Corp. 21,083 212,095
EOG Resources, Inc. 7,527 557,224
Exxon Mobil Corp. (b) 146,754 10,330,014
Hess Corp. 8,557 472,346
Marathon Oil Corp. 21,286 686,473
Massey Energy Co. 2,571 68,389
Murphy Oil Corp. 5,738 333,952
Noble Energy, Inc. 5,213 318,619
Occidental Petroleum Corp. 24,378 1,739,127
Continued
78
EQUITY INDEX
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- -------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
OIL & GAS, CONTINUED
Peabody Energy Corp. 8,041 $ 266,238
Range Resources Corp. 4,708 218,498
Southwestern Energy Co. * 10,335 428,179
Spectra Energy Corp. 19,397 356,129
Sunoco, Inc. 3,515 86,785
Tesoro Corp. 4,161 54,467
Valero Energy Corp. 16,730 301,140
Williams Cos., Inc. (The) 17,446 291,174
XTO Energy, Inc. 17,434 701,370
------------
26,693,665
------------
OIL GAS & CONSUMABLE FUELS (0.0%)
Pioneer Natural Resources Co. 3,428 97,869
------------
PAPER & FOREST PRODUCTS (0.2%)
International Paper Co. 12,998 244,492
MeadWestvaco Corp. 5,146 100,296
Weyerhaeuser Co. 6,356 222,714
------------
567,502
------------
PERSONAL PRODUCTS (0.2%)
Avon Products, Inc. 12,839 415,727
Estee Lauder Cos., Inc. (The),
Class A 3,490 127,175
------------
542,902
------------
PHARMACEUTICALS (7.1%)
Abbott Laboratories 46,479 2,091,090
Allergan, Inc. 9,248 494,121
Bristol-Myers Squibb Co. 59,574 1,295,139
Eli Lilly & Co. 30,409 1,060,970
Forest Laboratories, Inc. * 9,071 234,304
Johnson & Johnson 82,872 5,046,076
King Pharmaceuticals, Inc. * 7,457 67,635
Merck & Co., Inc. 63,417 1,903,144
Mylan, Inc. * 9,174 121,005
Pfizer, Inc. 202,941 3,232,850
Schering-Plough Corp. 48,971 1,298,221
Watson Pharmaceuticals, Inc. * 3,170 110,094
Wyeth 40,106 1,866,935
------------
18,821,584
------------
REAL ESTATE INVESTMENT TRUSTS (1.0%)
Apartment Investment & Management
Co., Class A 3,522 33,036
AvalonBay Communities, Inc. 2,403 139,855
Boston Properties, Inc. 4,166 220,381
Equity Residential 8,236 197,664
HCP, Inc. 8,194 211,077
Health Care REIT, Inc. 3,340 133,800
Host Hotels & Resorts, Inc. 18,081 164,176
Kimco Realty Corp. 9,734 95,783
Plum Creek Timber Co., Inc. 4,896 153,147
ProLogis 13,311 117,004
Public Storage 3,772 273,734
Continued
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
REAL ESTATE INVESTMENT TRUSTS, CONTINUED
Simon Property Group, Inc. 8,247 $ 459,523
Ventas, Inc. 4,707 166,157
Vornado Realty Trust 4,774 243,569
------------
2,608,906
------------
REAL ESTATE MANAGEMENT &
DEVELOPMENT (0.0%)
CB Richard Ellis Group, Inc.,
Class A * 7,116 77,564
------------
ROAD & RAIL (1.0%)
Burlington Northern Santa Fe Corp. 8,374 658,113
CSX Corp. 11,773 472,333
Norfolk Southern Corp. 11,038 477,393
Ryder System, Inc. 1,681 59,053
Union Pacific Corp. 15,161 872,061
------------
2,538,953
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT (2.6%)
Advanced Micro Devices, Inc. * 16,859 61,704
Altera Corp. 8,825 164,939
Analog Devices, Inc. 8,759 239,734
Applied Materials, Inc. 40,090 553,242
Broadcom Corp., Class A * 12,855 362,897
Intel Corp. 167,965 3,233,326
Kla-Tencor Corp. 5,109 162,875
Linear Technology Corp. 6,685 179,626
LSI Corp. * 19,515 101,088
MEMC Electronic Materials, Inc. * 6,721 118,424
Microchip Technology, Inc. 5,500 148,115
Micron Technology, Inc. * 25,465 162,722
National Semiconductor Corp. 5,870 88,402
Novellus Systems, Inc. * 2,937 57,477
Nvidia Corp. * 16,427 212,401
Teradyne, Inc. * 5,206 41,023
Texas Instruments, Inc. 38,298 921,067
Xilinx, Inc. 8,286 179,723
------------
6,988,785
------------
SOFTWARE (4.0%)
Adobe Systems, Inc. * 15,751 510,648
Autodesk, Inc. * 6,869 149,813
BMC Software, Inc. * 5,562 189,275
CA, Inc. 11,859 250,699
Citrix Systems, Inc. * 5,443 193,771
Compuware Corp. * 7,277 53,341
Electronic Arts, Inc. * 9,713 208,538
Intuit, Inc. * 9,716 288,565
McAfee, Inc. * 4,673 208,322
Microsoft Corp. (b) 230,182 5,413,881
Novell, Inc. * 10,381 47,545
Oracle Corp. 113,903 2,520,673
Red Hat, Inc. * 5,682 129,720
Salesforce.com, Inc. * 3,194 138,428
Symantec Corp. * 24,596 367,218
------------
10,670,437
------------
Continued
79
EQUITY INDEX
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- -------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
SPECIALTY RETAIL (1.9%)
Abercrombie & Fitch Co., Class A 2,643 $ 75,563
AutoNation, Inc. * 3,249 67,189
AutoZone, Inc. * 1,086 166,777
Bed Bath & Beyond, Inc. * 7,809 271,363
Best Buy Co., Inc. 10,266 383,640
GameStop Corp., Class A * 4,951 108,377
Gap, Inc. (The) 13,831 225,722
Home Depot, Inc. 51,014 1,323,303
Limited Brands, Inc. 8,124 105,125
Lowe's Cos., Inc. 44,405 997,336
Office Depot, Inc. * 8,261 37,588
O'Reilly Automotive, Inc. * 4,080 165,893
RadioShack Corp. 3,763 58,364
Sherwin-Williams Co. (The) 2,958 170,825
Staples, Inc. 21,513 452,203
Tiffany & Co. 3,731 111,296
TJX Cos., Inc. 12,437 450,593
------------
5,171,157
------------
TEXTILES APPAREL & LUXURY GOODS (0.5%)
Coach, Inc. 9,551 282,614
Nike, Inc., Class B 11,653 660,026
Polo Ralph Lauren Corp. 1,700 107,185
VF Corp. 2,661 172,140
------------
1,221,965
------------
THRIFTS & MORTGAGE FINANCE (0.1%)
Hudson City Bancorp, Inc. 15,684 220,517
People's United Financial, Inc. 10,475 170,219
------------
390,736
------------
TOBACCO (1.7%)
Altria Group, Inc. 62,183 1,090,068
Lorillard, Inc. 5,058 372,875
Philip Morris International, Inc. 58,993 2,749,074
Reynolds American, Inc. 5,082 221,118
------------
4,433,135
------------
TRADING COMPANIES & DISTRIBUTORS (0.1%)
Fastenal Co. 3,886 138,225
WW Grainger, Inc. 1,871 168,222
------------
306,447
------------
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
American Tower Corp., Class A * 11,960 407,716
MetroPCS Communications, Inc. * 7,620 90,297
Sprint Nextel Corp. * 86,352 345,408
------------
843,421
------------
TOTAL COMMON STOCKS 260,182,973
------------
Continued
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (2.4%)
COMMERCIAL BANKS (0.1%)
Fifth Third Bancorp 23,902 $ 227,069
------------
FIFTH THIRD FUNDS (2.3%)
Fifth Third Institutional Money
Market Fund (a) 6,252,662 6,252,662
------------
TOTAL INVESTMENTS IN AFFILIATES 6,479,731
------------
TOTAL INVESTMENTS (COST
$156,605,261) - 100.0% 266,662,704
OTHER ASSETS IN EXCESS OF
LIABILITIES - 0.0% 112,486
------------
NET ASSETS - 100.0% $266,775,190
============
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.
See notes to schedules of investments
and notes to financial statements.
80
INTERNATIONAL EQUITY
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- -------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
FOREIGN STOCKS (95.0%)
AUSTRALIA (7.7%)
Amcor, Ltd. 36,097 $ 149,439
Australia & New Zealand Banking
Group, Ltd. 63,767 988,233
BHP Billiton, Ltd. 118,886 3,763,436
Billabong International, Ltd. 41,721 321,019
BlueScope Steel, Ltd. 84,905 239,305
Boral, Ltd. 47,393 197,789
Brambles, Ltd. 105,773 529,895
Coca-Cola Amatil, Ltd. 145,656 1,136,575
Commonwealth Bank of Australia 69,683 2,494,357
Goodman Fielder, Ltd. 747,726 866,124
National Australia Bank, Ltd. 60,847 1,238,138
Qantas Airways, Ltd. 433,696 841,514
QBE Insurance Group, Ltd. 51,199 834,995
Tatts Group, Ltd. 670,727 1,374,358
Telstra Corp., Ltd. 417,415 1,232,340
Westpac Banking Corp. 63,393 1,149,976
Woolworths, Ltd. 73,463 1,674,261
------------
19,031,754
------------
AUSTRIA (1.1%)
Erste Group Bank AG 28,260 986,432
Raiffeisen International Bank
Holding AG 8,406 375,127
Voestalpine AG 48,007 1,332,222
------------
2,693,781
------------
BELGIUM (0.7%)
Anheuser-Busch InBev NV 10,927 434,755
Delhaize Group 16,549 1,183,374
------------
1,618,129
------------
DENMARK (1.5%)
Carlsberg AS, Class B 8,598 596,546
Novo Nordisk AS, Class B 51,860 3,052,223
------------
3,648,769
------------
FINLAND (0.3%)
Nokia Oyj 54,132 720,621
Rautaruukki Oyj 3,481 75,315
------------
795,936
------------
FRANCE (8.7%)
Air France-KLM * 30,000 377,605
AXA SA 61,324 1,296,217
BNP Paribas 19,260 1,404,132
Bouygues SA 54,760 2,332,506
Christian Dior SA 246 21,353
Cie de Saint-Gobain 7,731 313,490
CNP Assurances 1,509 137,886
Compagnie Generale des
Etablissements Michelin, Class B 24,705 1,783,841
France Telecom SA (b) 142,673 3,560,689
Continued
SHARES VALUE
------------- ------------
FOREIGN STOCKS, CONTINUED
FRANCE, CONTINUED
Neopost SA 9,727 $ 828,367
Sanofi-Aventis SA (b) 45,855 3,003,813
Schneider Electric SA 5,380 488,765
SCOR SE 24,542 589,233
Total SA (b) 61,353 3,402,539
Vallourec SA 2,987 392,955
Vinci SA 17,405 885,870
Vivendi 27,372 703,215
------------
21,522,476
------------
GERMANY (6.9%)
BASF SE 73,867 3,701,736
Bayerische Motoren Werke AG 33,733 1,559,222
Deutsche Lufthansa AG 61,598 832,302
Hamburger Hafen und Logistik AG 13,576 623,066
Hannover Rueckversicherung AG * 9,984 406,272
Henkel AG & Co., KGaA 18,114 570,059
Hochtief AG 17,974 1,079,044
K+S AG 6,028 338,341
MAN SE 4,619 319,298
Muenchener Rueckversicherungs AG 14,972 2,263,916
RWE AG 37,045 3,128,413
Salzgitter AG 11,485 1,164,694
Suedzucker AG 17,917 376,417
Volkswagen AG 1,750 629,205
------------
16,991,985
------------
GREAT BRITAIN (20.0%)
Admiral Group PLC 59,598 952,248
AstraZeneca PLC (b) 86,985 4,072,874
Aviva PLC 33,701 197,458
Barclays PLC 524,613 2,649,176
BHP Billiton PLC 55,233 1,442,086
BP PLC (b) 551,673 4,581,908
British American Tobacco PLC 67,548 2,096,485
Carnival PLC 50,253 1,464,003
Diageo PLC 14,128 221,369
Experian PLC 103,823 856,750
GlaxoSmithKline PLC 149,906 2,877,217
Home Retail Group PLC 193,219 1,013,475
HSBC Holdings PLC 349,070 3,532,153
Investec PLC 231,563 1,562,730
J Sainsbury PLC 188,575 1,000,141
Kazakhmys PLC 3,052 43,666
Lloyds Banking Group PLC 329,574 467,956
Man Group PLC 237,893 1,099,772
Marks & Spencer Group PLC 323,370 1,867,650
National Grid PLC 74,991 699,626
Next PLC 57,609 1,640,772
Old Mutual PLC 295,230 472,553
Royal Bank of Scotland Group PLC * 444,253 332,796
Royal Dutch Shell PLC, Class A 165,512 4,346,259
Royal Dutch Shell PLC, Class B (b) 60,663 1,574,739
Continued
81
INTERNATIONAL EQUITY
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
FOREIGN STOCKS, CONTINUED
GREAT BRITAIN, CONTINUED
RSA Insurance Group PLC 97,332 $ 205,837
Standard Chartered PLC 113,956 2,704,985
Standard Life PLC 71,669 236,805
Tomkins PLC 254,512 752,515
Vedanta Resources PLC 20,031 590,248
Vodafone Group PLC 1,426,910 2,924,655
Wolseley PLC * 15,250 341,102
Xstrata PLC 37,735 509,444
------------
49,331,453
------------
GREECE (0.6%)
National Bank of Greece SA * 31,224 911,433
OPAP SA 25,863 621,133
------------
1,532,566
------------
HONG KONG (2.0%)
Chinese Estates Holdings, Ltd. 127,000 221,880
Hang Seng Bank, Ltd. 21,780 353,817
Henderson Land Development
Co., Ltd. 244,000 1,616,686
Hong Kong Exchanges and
Clearing, Ltd. 65,900 1,240,613
HongKong Electric Holdings, Ltd. 35,500 195,134
Hopewell Holdings, Ltd. 223,000 725,105
Hutchison Whampoa, Ltd. 14,000 104,412
NWS Holdings, Ltd. 52,000 99,840
Wheelock & Co., Ltd. 133,201 373,820
------------
4,931,307
------------
ITALY (4.2%)
Enel SpA 593,848 3,226,943
ENI SpA (b) 154,636 3,599,174
Parmalat SpA 521,406 1,302,759
Telecom Italia SpA 496,297 776,694
UniCredit SpA * 468,337 1,371,754
------------
10,277,324
------------
JAPAN (21.4%)
Aeon Co., Ltd. 96,900 942,119
Aeon Credit Service Co., Ltd. 59,700 680,123
Aisin Seiki Co., Ltd. 45,918 1,181,615
Asahi Glass Co., Ltd. 114,000 990,309
Asahi Kasei Corp. 312,000 1,612,343
Astellas Pharma, Inc. 28,300 1,079,662
Brother Industries, Ltd. 34,600 311,903
Canon, Inc. 59,199 2,208,428
Chubu Electric Power Co., Inc. 50,000 1,204,756
Chugoku Bank, Ltd. (The) 8,000 107,878
Credit Saison Co., Ltd. 36,800 480,685
Daito Trust Construction Co., Ltd. 11,500 566,341
Denso Corp. 2,000 59,075
Electric Power Development Co., Ltd. 2,600 77,210
Elpida Memory, Inc. * 37,600 429,147
Fast Retailing Co., Ltd. 4,200 545,501
Continued
SHARES VALUE
------------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Fuji Media Holdings, Inc. 249 $ 398,137
Fukuoka Financial Group, Inc. 104,000 456,116
Furukawa Electric Co., Ltd. (The) 147,000 709,950
Hitachi Construction Machinery
Co., Ltd. 1,900 33,713
Honda Motor Co., Ltd. 70,200 2,262,721
Hoya Corp. 24,300 586,795
JFE Holdings, Inc. 31,400 1,264,296
JTEKT Corp. 22,000 249,004
Kaneka Corp. 86,000 598,024
Kansai Electric Power Co., Inc. (The) 28,000 625,839
Kao Corp. 44,000 997,411
Kirin Holdings Co., Ltd. 12,000 179,572
Kubota Corp. 83,000 747,329
Kyushu Electric Power Co., Inc. 48,300 1,041,289
Lawson, Inc. 10,500 436,090
Mitsubishi UFJ Financial Group, Inc. 163,162 975,954
Mitsubishi UFJ Lease & Finance
Co., Ltd. 22,154 678,960
Mizuho Financial Group, Inc. 53,600 121,786
Murata Manufacturing Co., Ltd. 27,700 1,358,288
NEC Corp. * 75,000 263,144
Nintendo Co., Ltd. 1,300 351,567
Nippon Express Co., Ltd. 363,000 1,668,745
Nippon Mining Holdings, Inc. 73,000 347,160
Nippon Paper Group, Inc. 56,100 1,446,594
Nippon Telegraph & Telephone Corp. 7,300 301,643
Nissan Motor Co., Ltd. 195,032 1,420,101
Nomura Holdings, Inc. 102,100 894,488
NSK, Ltd. 43,000 233,120
NTN Corp. 350,000 1,416,645
NTT Data Corp. 11 37,083
NTT DoCoMo, Inc. 921 1,335,389
Panasonic Corp. 4,800 76,090
Resona Holdings, Inc. 25,500 376,740
Ricoh Co., Ltd. 30,500 400,328
Sankyo Co., Ltd. 900 53,643
Santen Pharmaceutical Co., Ltd. 21,400 668,291
Seiko Epson Corp. 12,800 196,954
Sekisui House, Ltd. 62,000 584,454
Sharp Corp. 10,000 111,281
Shin-Etsu Chemical Co., Ltd. 1,900 102,404
Shiseido Co., Ltd. 2,000 32,634
Softbank Corp. 4,600 97,955
Sojitz Corp. 42,400 88,721
Sony Corp. 42,500 1,201,453
Sony Financial Holdings, Inc. 81 249,698
Sumco Corp. 26,600 498,970
Sumitomo Corp. 75,100 743,659
Sumitomo Electric Industries, Ltd. 205,100 2,555,486
Sumitomo Mitsui Financial Group, Inc. 13,700 586,367
Suzuken Co., Ltd. 13,100 395,250
Taiheiyo Cement Corp. 44,000 66,494
Continued
82
INTERNATIONAL EQUITY
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
FOREIGN STOCKS, CONTINUED
JAPAN, CONTINUED
Takeda Pharmaceutical Co., Ltd. 9,000 $ 364,280
TDK Corp. 21,300 1,120,993
Tohoku Electric Power Co., Inc. 17,700 368,684
Tokio Marine Holdings, Inc. 21,800 633,554
Tokyo Tatemono Co., Ltd. 3,000 14,711
Tokyu Land Corp. 9,000 36,333
TonenGeneral Sekiyu KK 33,000 315,266
Tosoh Corp. 77 225
Toyota Motor Corp.(b) 42,600 1,796,291
Toyota Tsusho Corp. 4,700 72,220
Trend Micro, Inc. 13,000 449,247
USS Co., Ltd. 13,020 814,567
West Japan Railway Co. 468 1,493,643
Yamazaki Baking Co., Ltd. 31,000 389,527
------------
52,870,461
------------
LUXEMBOURG (0.1%)
ArcelorMittal 3,852 138,629
------------
NETHERLANDS (2.3%)
European Aeronautic Defence and
Space Co. NV 25,366 483,742
Fugro NV 23,356 1,048,113
ING Groep NV 105,734 1,356,022
Koninklijke Ahold NV 175,098 1,991,296
Koninklijke KPN NV 56,160 844,073
------------
5,723,246
------------
NORWAY (1.4%)
DnB NOR ASA * 127,800 1,112,147
StatoilHydro ASA 114,999 2,457,785
------------
3,569,932
------------
PORTUGAL (0.2%)
Jeronimo Martins SGPS SA 60,080 421,309
------------
SINGAPORE (1.2%)
DBS Group Holdings, Ltd. 41,000 395,428
Jardine Cycle & Carriage, Ltd. 56,194 921,501
Neptune Orient Lines, Ltd. 368,000 424,473
SembCorp Industries, Ltd. 276,000 615,613
Singapore Exchange, Ltd. 108,000 654,386
------------
3,011,401
------------
Continued
SHARES VALUE
------------- ------------
FOREIGN STOCKS, CONTINUED
SPAIN (5.4%)
Banco Popular Espanol SA 168,174 $ 1,518,489
Banco Santander SA 349,081 5,055,056
Enagas 83,584 1,652,960
Telefonica SA (b) 210,158 5,228,437
------------
13,454,942
------------
SWEDEN (3.2%)
Hennes & Mauritz AB, Class B 37,328 2,219,195
Holmen AB, Class B 49,004 1,348,017
Nordea Bank AB 41,961 407,050
SSAB AB, Class B 8,816 105,374
Svenska Handelsbanken AB, Class A 86,691 2,120,422
Swedbank AB, Class A * 50,821 392,637
Telefonaktiebolaget LM Ericsson,
Class B 82,763 812,032
Volvo AB, Class A 72,005 511,399
------------
7,916,126
------------
SWITZERLAND (6.1%)
Baloise Holding AG 17,584 1,401,915
Compagnie Financiere Richemont SA,
Class A 15,272 375,280
Credit Suisse Group AG 25,085 1,185,414
Geberit AG 6,765 943,865
Holcim, Ltd. * 26,469 1,607,484
Nestle SA (b) 86,119 3,544,204
Novartis AG 28,099 1,286,825
Roche Holding AG 17,391 2,742,136
SGS SA 1,690 1,995,770
Swisscom AG 210 68,926
------------
15,151,819
------------
TOTAL FOREIGN STOCKS 234,633,345
------------
INVESTMENT COMPANIES (2.9%)
SWEDEN (0.4%)
Investor AB, Class B 62,105 1,105,944
------------
UNITED STATES (2.5%)
iShares MSCI EAFE Index Fund 121,600 6,129,856
------------
TOTAL INVESTMENT COMPANIES 7,235,800
------------
Continued
83
INTERNATIONAL EQUITY
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
RIGHTS (0.0%)
JAPAN (0.0%)
Dowa Holdings Co., Ltd. * 28,000 $ --
------------
TOTAL RIGHTS --
------------
INVESTMENTS IN AFFILIATES (1.4%)
UNITED STATES (1.4%)
Fifth Third Institutional Money
Market Fund (a) 3,505,231 3,505,231
------------
TOTAL INVESTMENTS IN AFFILIATES 3,505,231
------------
TOTAL INVESTMENTS (COST
$238,772,991) - 99.3% 245,374,376
OTHER ASSETS IN EXCESS OF
LIABILITIES - 0.7% 1,703,352
------------
NET ASSETS - 100.0% $247,077,728
============
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.
AT JULY 31, 2009, INTERNATIONAL EQUITY'S INDUSTRY INVESTMENT CONCENTRATIONS,
AS A PERCENTAGE OF NET ASSETS, WERE AS FOLLOWS:
Aerospace & Defense 0.2%
Airlines 0.8%
Apparel Manufacturers 0.1%
Audio / Video Products 0.5%
Auto / Truck Parts & Equipment-Original 0.6%
Auto-Cars & Light Trucks 3.1%
Automotive Retail 0.3%
Beverages-Non Alcoholic 0.5%
Beverages-Wine/Spirits 0.1%
Brewery 0.5%
Building & Construction-Miscellaneous 1.4%
Building & Construction Products-Miscellaneous 0.5%
Building-Heavy Construction 0.4%
Building Products-Cement / Aggregate 0.8%
Building Products-Doors & Windows 0.4%
Building-Residential / Commercial 0.2%
Cellular Telecom 1.7%
Chemicals-Diversified 2.6%
Commercial Banks Non-U.S. 14.0%
Commercial Services 0.8%
Commercial Services-Finance 0.3%
Computers-Memory Devices 0.5%
Containers-Paper / Plastic 0.1%
Cosmetics & Toiletries 0.4%
Cruise Lines 0.6%
Distribution / Wholesale 0.5%
Divers Operators / Commercial Services 0.2%
Diversified Financial Services 0.6%
Diversified Manufacturing Operations 0.3%
Diversified Minerals 2.3%
Diversified Operations 0.1%
Electric Products-Miscellaneous 0.2%
Electric-Generation --^
Electric-Integrated 4.0%
Continued
AT JULY 31, 2009, INTERNATIONAL EQUITY'S INDUSTRY INVESTMENT CONCENTRATIONS,
AS A PERCENTAGE OF NET ASSETS, WERE AS FOLLOWS, CONTINUED:
Electric-Transmission 0.3%
Electronic Components-Miscellaneous 0.9%
Electronic Components-Semiconductors 0.4%
Engineering / R & D Services 0.2%
Fifth Third Funds 1.4%
Finance-Credit Card 0.5%
Finance-Investment Banker / Broker 0.8%
Finance-Leasing Companies 0.3%
Finance-Other Services 1.2%
Food 0.7%
Food-Miscellaneous / Diversified 1.9%
Food-Retail 2.5%
Gambling (Non-Hotel) 0.2%
Gas-Distribution 0.7%
Household & Personal Products 0.2%
Import / Export 0.4%
Internet Security 0.2%
Investment Companies 2.9%
Leisure & Recreation Products --^
Life & Health Insurance 0.5%
Lottery Services 0.6%
Machinery-Construction & Mining --^
Machinery-Farm 0.3%
Machinery-General Industry 0.3%
Marine Ports & Services 0.3%
Medical-Drugs 7.7%
Medical-Wholesale Drug Distributors 0.2%
Metal Processors & Fabricators 0.7%
Metal-Copper --^
Metal-Diversified 0.2%
Multi-Line Insurance 1.7%
Multimedia 0.3%
Networking Products --^
Non-Ferrous Metals --^
Office Automation & Equipment 1.5%
Oil Company-Integrated 8.1%
Oil Refining & Marketing 0.3%
Oil-Field Services 0.4%
Paper & Related Products 1.1%
Power Conversion / Supply Equipment 0.2%
Property & Casualty Insurance 1.1%
Real Estate Management Services 0.2%
Real Estate Operation / Development 1.2%
Reinsurance 1.3%
Retail 0.2%
Retail-Apparel / Shoes 1.8%
Retail-Convenience Store 0.2%
Retail-Major Department Store 1.2%
Retail-Misc / Diversified 0.4%
Rubber-Tires 0.7%
Steel-Producers 1.9%
Telephone-Integrated 4.9%
Television 0.2%
Tobacco 0.8%
Toys 0.1%
Transportation-Marine 0.2%
Transportation-Rail 0.6%
Trucking 0.7%
Wire & Cable Products 1.3%
Wireless Equipment 0.6%
- ---------
^ Amount is less than 0.05%.
See notes to schedules of investments
and notes to financial statements.
84
STRATEGIC INCOME
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
ASSET-BACKED SECURITIES (3.2%)
AUTOMOBILE ABS OTHER (1.2%)
Susquehanna Auto Lease Trust, Series
2007-1, Class B, 5.31%, 7/14/10 (b) $ 1,000,000 $ 1,003,286
------------
AUTOMOBILES SEQUENTIAL (0.3%)
Honda Auto Receivables Owner Trust,
Series 2009-3, Class A3, 2.31%,
5/15/13 250,000 249,488
------------
MANUFACTURED HOUSING ABS OTHER (0.4%)
Mid-State Trust, Series 2005-1, Class
M2, 7.08%, 1/15/40 556,655 366,464
------------
OTHER ABS (1.3%)
Aerco, Ltd., Series 2A, Class A3,
0.75%, 7/15/25 (a)(b)(f) 823,974 329,590
Residential Asset Securities Corp.,
Series 2006-KS3, Class AI3, 0.46%,
4/25/36 (a) 891,951 699,105
------------
1,028,695
------------
TOTAL ASSET-BACKED SECURITIES 2,647,933
------------
CONVERTIBLE BONDS (0.5%)
SUPER-REGIONAL BANKS-U.S. (0.5%)
National City Corp., 4.00%, 2/1/11 425,000 421,812
------------
TOTAL CONVERTIBLE BONDS 421,812
------------
CORPORATE BONDS (20.6%)
CABLE TV (1.3%)
COX Communications, Inc., 7.75%,
11/1/10 1,000,000 1,052,389
------------
COMMERCIAL BANKS-CENTRAL U.S. (0.6%)
SunTrust Bank, 3.00%, 11/16/11 500,000 515,707
------------
COMMERCIAL BANKS-EASTERN U.S. (0.2%)
Emigrant Capital Trust, 3.85%,
12/10/33, (Callable 8/31/09 @ 100) (a)
(b) 1,000,000 157,706
------------
COMMERCIAL BANKS-SOUTHERN U.S. (1.6%)
First Tennessee Capital II, Series B,
6.30%, 4/15/34, (Callable
8/31/09 @ 100) 1,500,000 821,727
Union Planters Corp., 4.38%, 12/1/10 500,000 484,366
------------
1,306,093
------------
DIVERSIFIED FINANCIAL SERVICES (1.2%)
General Electric Capital Corp.,
6.88%, 1/10/39 1,000,000 981,985
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
ELECTRIC-INTEGRATED (1.7%)
FPL Group Capital, Inc., 6.65%, 6/15/67,
(Callable 6/15/17 @ 100) (a) $ 1,000,000 $ 860,000
Public Service Co. of Oklahoma,
Series C, 4.85%, 9/15/10 500,000 512,068
------------
1,372,068
------------
FINANCE-CONSUMER LOANS (0.7%)
SLM Corp., Series CPI, 1.39%,
11/21/13 (a) 1,000,000 583,340
------------
FINANCE-INVESTMENT BANKER/BROKER (1.1%)
Bear Stearns Cos. LLC (The), 4.65%,
7/2/18 1,000,000 944,760
------------
FINANCE-OTHER SERVICES (0.5%)
Cullen Frost Cap Trust I, 2.22%,
3/1/34, (Callable 8/31/09 @ 100) (a) 1,000,000 383,213
------------
FINANCIAL GUARANTEE INSURANCE (0.7%)
Radian Group, Inc., 5.63%, 2/15/13 1,000,000 541,250
------------
INSURANCE BROKERS (0.5%)
Marsh & McLennan Cos., Inc., 5.88%,
8/1/33 500,000 444,579
------------
MACHINERY-CONSTRUCTION & MINING (0.7%)
Joy Global, Inc., 6.00%, 11/15/16 625,000 595,462
------------
MONEY CENTER BANKS (1.3%)
Deutsche Bank Trust Corp., 7.25%,
10/15/11 1,000,000 1,053,540
------------
MULTI-LINE INSURANCE (0.5%)
American Financial Group, Inc.,
9.88%, 6/15/19 375,000 385,124
------------
REAL ESTATE INVESTMENT TRUSTS (3.0%)
HCP, Inc., 6.70%, 1/30/18 850,000 773,112
Realty Income Corp., 6.75%, 8/15/19 900,000 852,983
Simon Property Group L.P., 6.35%,
8/28/12 850,000 863,592
------------
2,489,687
------------
REINSURANCE (0.6%)
Berkshire Hathaway Finance Corp.,
4.60%, 5/15/13 500,000 521,514
------------
RETAIL-DRUG STORE (0.9%)
CVS Pass Through Trust, 7.77%,
1/10/12 (b) 663,308 732,814
------------
RETAIL-OFFICE SUPPLIES (1.2%)
Staples, Inc., 9.75%, 1/15/14 850,000 995,793
------------
Continued
85
STRATEGIC INCOME
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
SPECIAL PURPOSE ENTITY (1.3%)
Capital One Capital V, W/I, 10.25%,
8/15/39 $ 400,000 $ 407,000
HVB Funding Trust I, 8.74%, 6/30/31,
(Callable 6/30/29 @ 100) (b) 1,000,000 675,000
------------
1,082,000
------------
SUPER-REGIONAL BANKS-U.S. (0.6%)
PNC Financial Services Group, Inc.,
8.25%, 5/21/13 (a)(e) 500,000 451,834
------------
WIRELESS EQUIPMENT (0.4%)
Motorola, Inc., 6.50%, 11/15/28 500,000 363,290
------------
TOTAL CORPORATE BONDS 16,954,148
------------
FOREIGN BONDS (7.0%)
COMMERCIAL BANKS NON-U.S. (1.3%)
HBOS PLC, 5.38%, 11/1/13 (a)(b)(e) 2,000,000 1,043,930
------------
DIVERSIFIED OPERATIONS (0.6%)
Hutchison Whampoa International
(03/13), Ltd., 6.50%, 2/13/13 (b) 486,000 521,433
------------
MULTI-LINE INSURANCE (0.8%)
AXA SA, 6.46%, 12/14/18 (a)(b)(e) 1,000,000 670,000
------------
SOVEREIGN (3.7%)
Brazil, Federal Republic, Series F,
10.00%, 1/1/12 BRL 1,660,000 862,985
Brazil, Federal Republic, Series F,
10.00%, 1/1/14 BRL 1,870,000 922,936
Mexico Government International Bond,
Series A, 6.75%, 9/27/34 1,000,000 1,030,000
Russia Government International Bond,
8.25%, 3/31/10 (b) 222,290 227,424
------------
3,043,345
------------
SPECIAL PURPOSE BANKS (0.6%)
Export-Import Bank of Korea, 8.13%,
1/21/14 425,000 470,198
------------
TOTAL FOREIGN BONDS 5,748,906
------------
MORTGAGE-BACKED SECURITIES (6.2%)
CMBS OTHER (2.0%)
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD5,
Class A2, 5.66%, 11/15/44 1,000,000 944,347
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%,
8/10/38 676,649 675,855
------------
1,620,202
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
MORTGAGE-BACKED SECURITIES, CONTINUED
WL COLLATERAL CMO OTHER (3.0%)
Bear Stearns Asset Backed Securities
Trust, Series 2003-AC7, Class A2,
5.25%, 1/25/34 $ 486,594 $ 391,368
Countrywide Home Loan Mortgage Pass
Through Trust, Series 2003-48, Class
2A3, 4.56%, 10/25/33 (a) 1,042,900 956,855
Countrywide Home Loan Mortgage Pass
Through Trust, Series 2004-HYB5,
Class 4A1, 4.82%, 4/20/35 (a) 282,349 210,532
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A,
3.22%, 12/25/32 (a) 21,719 19,318
Wells Fargo Mortgage Backed
Securities Trust, Series 2004-X,
Class 1A5, 4.92%, 11/25/34 (a) 1,000,000 911,256
------------
2,489,329
------------
WL COLLATERAL CMO SEQUENTIAL (1.2%)
JP Morgan Mortgage Trust,
Series 2006-A3, Class 2A1, 5.60%,
5/25/36 (a) 612,712 539,260
JP Morgan Mortgage Trust,
Series 2007-A2, Class 4A1M, 5.78%,
4/25/37 (a) 619,096 469,830
------------
1,009,090
------------
TOTAL MORTGAGE-BACKED SECURITIES 5,118,621
------------
U.S. GOVERNMENT AGENCIES (4.1%)
FANNIE MAE (0.4%)
4.28%, 7/1/18 (a) 292,219 301,089
------------
FREDDIE MAC (3.7%)
4.81%, 1/1/37 (a)(d) 900,870 936,644
5.00%, 9/15/25 448,172 451,937
5.23%, 10/1/32 (a) 150,330 153,231
6.50%, 9/1/22 (d) 719,219 765,505
6.50%, 8/1/37 686,535 736,407
------------
3,043,724
------------
TOTAL U.S. GOVERNMENT AGENCIES 3,344,813
------------
U.S. TREASURY OBLIGATIONS (1.2%)
U.S. TREASURY NOTES (1.2%)
2.75%, 2/15/19 1,000,000 939,450
------------
TOTAL U.S. TREASURY OBLIGATIONS 939,450
------------
SHARES
-------------
COMMON STOCKS (4.3%)
BEVERAGES (0.2%)
Diageo PLC ADR 2,240 139,731
------------
DIVERSIFIED TELECOMMUNICATION
SERVICES (0.3%)
AT&T, Inc. 9,060 237,644
------------
Continued
86
STRATEGIC INCOME
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
COMMON STOCKS, CONTINUED
ELECTRIC UTILITIES (0.5%)
Duke Energy Corp. 7,940 $ 122,911
Entergy Corp. 1,470 118,085
Southern Co. 4,640 145,696
------------
386,692
------------
ENERGY EQUIPMENT & SERVICES (0.4%)
Diamond Offshore Drilling, Inc. 3,750 337,013
------------
FOOD PRODUCTS (0.2%)
Kraft Foods, Inc., Class A 4,784 135,579
------------
HOUSEHOLD PRODUCTS (0.3%)
Kimberly-Clark Corp. 3,730 218,019
------------
MULTI-UTILITIES (0.2%)
Wisconsin Energy Corp. 4,420 189,927
------------
OIL & GAS (0.1%)
Spectra Energy Corp. 4,000 73,440
------------
REAL ESTATE (0.4%)
Public Storage, Class A 12,000 301,800
------------
REAL ESTATE INVESTMENT TRUSTS (1.0%)
Annaly Capital Management, Inc. 28,000 471,800
ProLogis 33,000 290,070
Weingarten Realty Investors 7,025 108,396
------------
870,266
------------
ROAD & RAIL (0.1%)
Canadian Pacific Railway, Ltd. 2,670 118,788
------------
TEXTILES APPAREL & LUXURY GOODS (0.1%)
VF Corp. 1,600 103,504
------------
TOBACCO (0.5%)
Altria Group, Inc. 6,850 120,080
Philip Morris International, Inc. 6,850 319,210
------------
439,290
------------
TOTAL COMMON STOCKS 3,551,693
------------
INVESTMENT COMPANIES (3.9%)
American Income Fund, Inc. 135,400 1,022,270
Eaton Vance Tax-Advantaged Dividend
Income Fund 23,600 322,848
ING Prime Rate Trust 160,400 725,008
Templeton Global Income Fund 61,374 543,774
Van Kampen Senior Income Trust 152,000 545,680
------------
TOTAL INVESTMENT COMPANIES 3,159,580
------------
Continued
SHARES VALUE
------------- ------------
CONVERTIBLE PREFERRED STOCK (3.9%)
AGRICULTURE OPERATIONS (1.4%)
Archer Daniels Midland Co., 6.25% 30,000 $ 1,183,500
------------
MEDICAL-DRUGS (1.4%)
Mylan, Inc., 6.50% 550 485,100
Schering-Plough Corp., 6.00% 2,750 641,410
------------
1,126,510
------------
MINING (1.1%)
Freeport-McMoRan Copper & Gold,
Inc., 6.75% 9,500 876,280
------------
TOTAL CONVERTIBLE PREFERRED STOCK 3,186,290
------------
PREFERRED STOCKS (39.6%)
CABLE TV (2.1%)
Comcast Corp., 7.00% 20,000 478,400
Comcast Corp., Series B, 7.00% 50,000 1,207,000
------------
1,685,400
------------
CELLULAR TELECOM (0.9%)
US Cellular Corp., 8.75% 29,500 718,915
------------
CLOSED-END FUNDS (1.4%)
Source Capital, Inc., 2.40% 35,600 1,128,520
------------
COMMERCIAL BANKS-EASTERN U.S. (0.5%)
HSBC USA, Inc., Series G, 4.00% (a) 26,500 437,250
------------
COMMERCIAL BANKS NON-U.S. (2.1%)
Barclays Bank PLC, Series 2, 6.63% 46,900 930,965
Barclays Bank PLC, Series 5, 8.13% 36,000 824,400
------------
1,755,365
------------
COMMERCIAL BANKS-SOUTHERN U.S. (0.7%)
BB&T Capital Trust VI, 9.60% 6,000 154,500
First Tennessee Bank NA, 3.75% (a)(b) 1,000 400,625
------------
555,125
------------
DIVERSIFIED FINANCIAL SERVICES (2.0%)
Citigroup Capital VII, 7.13% 84,925 1,668,776
------------
ELECTRIC-INTEGRATED (3.6%)
American Electric Power Co.,
Inc., 8.75% 16,000 437,440
Constellation Energy Group, Inc.,
Series A, 8.63% 23,000 550,850
Entergy Arkansas, Inc., 6.00% 45,600 1,126,776
Xcel Energy, Inc., 7.60% 33,000 864,600
------------
2,979,666
------------
Continued
87
STRATEGIC INCOME
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
PREFERRED STOCKS, CONTINUED
FINANCE-CONSUMER LOANS (0.7%)
HSBC Finance Corp., 6.88% 23,650 $ 525,503
------------
FINANCE-CREDIT CARD (1.0%)
MBNA Capital, Series D, 8.13% 37,800 839,160
------------
FINANCE-INVESTMENT BANKER/BROKER (2.6%)
Bear Stearns Capital Trust III,
7.80% 26,100 638,406
Credit Suisse, Ltd., 7.90% 16,000 400,000
Goldman Sachs Group, Inc. (The),
Series A, 3.75% (a) 40,000 699,200
Merrill Lynch Preferred Capital
Trust III, 7.00% 9,800 182,966
Morgan Stanley Capital Trust VIII,
6.45% 10,800 220,860
------------
2,141,432
------------
FINANCE-MORTGAGE LOAN/BANKER (0.6%)
Countrywide Capital IV, 6.75% 26,500 486,275
------------
FINANCIAL GUARANTEE INSURANCE (1.4%)
Financial Security Assurance
Holdings, Ltd., 6.25% 90,350 1,115,823
------------
INVESTMENT MANAGEMENT/ADVISOR SERVICES (1.2%)
Ameriprise Financial, Inc., 7.75% 9,553 222,107
Deutsche Bank Contingent Capital
Trust III, 7.60% 36,000 789,120
------------
1,011,227
------------
LIFE & HEALTH INSURANCE (0.4%)
AAG Holding Co., Inc., 7.25% 15,200 291,840
------------
MISCELLANEOUS (0.6%)
Duke Realty Corp., Series L, 6.60% 30,000 514,800
------------
MONEY CENTER BANKS (1.4%)
Santander Finance Preferred SA
Unipersonal, Series 6, 4.00% (a) 80,000 1,176,000
------------
MULTI-LINE INSURANCE (4.2%)
Aegon NV, Series 1, 4.00% (a) 51,900 731,790
ING Groep NV, 7.20% 41,200 826,884
ING Groep NV, 8.50% 20,000 435,600
MetLife, Inc., Series A, 4.00% (a) 40,000 737,600
MetLife, Inc., Series B, 6.50% 30,000 687,000
------------
3,418,874
------------
REAL ESTATE (0.3%)
Public Storage, Series L, 6.75% 10,000 218,600
------------
Continued
SHARES VALUE
------------- ------------
PREFERRED STOCKS, CONTINUED
REAL ESTATE INVESTMENT TRUSTS (4.0%)
CBL & Associates Properties, Inc.,
Series D, 7.38% 20,500 $ 292,125
Duke Realty Corp., Series M, 6.95% 10,000 170,700
Harris Preferred Capital Corp.,
Series A, 7.38% 31,800 691,650
HRPT Properties Trust, Series B,
8.75% 13,358 259,813
Huntington Preferred Capital, Inc.,
7.88% 15,507 295,098
Public Storage, Series M, 6.63% 40,000 860,800
Wachovia Preferred Funding Corp.,
Series A, 7.25% 36,400 742,924
------------
3,313,110
------------
REINSURANCE (0.6%)
RenaissanceRe Holdings, Ltd.,
Series D, 6.60% 22,861 480,538
------------
S&L/THRIFTS-SOUTHERN U.S. (0.2%)
BBC Capital Trust II, 8.50% 28,000 160,720
------------
SOVEREIGN AGENCY (0.8%)
Fannie Mae, 7.63% 40,000 72,800
Fannie Mae, 8.25% 40,000 76,000
Fannie Mae, 8.25% (a) 160,000 297,600
Freddie Mac, 5.00% 20,000 32,200
Freddie Mac, 5.10% 10,000 17,100
Freddie Mac, 5.70% 25,500 44,880
Freddie Mac, 8.38% (a) 90,000 117,900
------------
658,480
------------
SPECIAL PURPOSE ENTITY (1.7%)
Corporate-Backed Trust
Certificates, Series AIG, 6.13% 60,000 413,400
Corporate-Backed Trust
Certificates, Series HSBC, 6.25% 30,500 562,420
CORTS Trust for Sherwin-Williams,
Series III, 7.25% 17,600 428,384
------------
1,404,204
------------
SUPER-REGIONAL BANKS-U.S. (2.9%)
US Bancorp, Series B, 3.50% (a) 20,000 300,000
US Bancorp, Series D, 7.88% 11,000 290,400
USB Capital XII, 6.30% 40,000 892,400
Wells Fargo Capital XII, 7.88% 36,000 896,040
------------
2,378,840
------------
Continued
88
STRATEGIC INCOME
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
PREFERRED STOCKS, CONTINUED
TELEPHONE-INTEGRATED (1.1%)
Telephone and Data Systems, Inc.,
Series A, 7.60% 41,711 $ 928,487
------------
TELEVISION (0.6%)
CBS Corp., 7.25% 26,000 514,800
------------
TOTAL PREFERRED STOCKS 32,507,730
------------
INVESTMENTS IN AFFILIATES (5.3%)
Fifth Third Institutional Money
Market Fund (c) 4,383,694 4,383,694
------------
TOTAL INVESTMENTS IN AFFILIATES 4,383,694
------------
TOTAL INVESTMENTS (COST
$103,366,811) - 99.8% 81,964,670
OTHER ASSETS IN EXCESS OF
LIABILITIES - 0.2% 169,142
------------
NET ASSETS - 100.0% $ 82,133,812
============
NOTES TO SCHEDULE OF INVESTMENTS
(a) Variable rate security. Rate presented represents rate in effect at July
31, 2009.
(b) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
(c) Investment is in Institutional Shares of underlying fund.
(d) All or part of this security has been designated as collateral for futures
contracts and a when issued security.
(e) Perpetual Maturity. Callable any time after first call date. Maturity date
is next call date.
(f) Illiquid Securities.
The following abbreviations are used in the Schedule of Investments:
ABS - Asset Backed Security
ADR - American Depositary Receipt
BRL - Brazilian Real
CMBS - Commercial Mortgage-Backed Security
CMO - Collateralized Mortgage Obligation
CORTS - Corporate-Backed Trust Security
W/I - When Issued
WL - Whole Loan
Continued
At July 31, 2009, Strategic Income's investments were in the following
countries:
COUNTRY
- -------------------------------------------------------------------------------
Bermuda 0.6%
Brazil 2.2%
Canada 0.1%
Cayman Islands 0.6%
Great Britain 3.6%
Mexico 1.3%
Netherlands 2.4%
Russia 0.3%
South Korea 0.6%
Spain 1.4%
United States 86.9%
------------
TOTAL 100.0%
============
See notes to schedules of investments
and notes to financial statements.
89
LIFEMODEL AGGRESSIVE(SM)
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (a) (98.9%)
Fifth Third All Cap Value Fund 943,935 $ 11,818,070
Fifth Third Disciplined Large Cap
Value Fund 1,652,828 14,131,677
Fifth Third High Yield Bond Fund 90,403 788,311
Fifth Third International
Equity Fund 3,188,616 23,117,466
Fifth Third Mid Cap Growth Fund * 1,565,762 11,492,695
Fifth Third Quality Growth Fund 1,077,087 13,398,963
Fifth Third Short Term Bond Fund 327,770 3,058,099
Fifth Third Small Cap Growth Fund * 956,504 5,815,542
Fifth Third Small Cap Value Fund 432,064 5,824,222
Fifth Third Structured Large Cap
Plus Fund 1,723,460 15,597,311
Fifth Third Total Return Bond Fund 921,670 7,806,542
------------
TOTAL INVESTMENTS IN AFFILIATES 112,848,898
------------
TOTAL INVESTMENTS (COST
$150,064,843) - 98.9% 112,848,898
OTHER ASSETS IN EXCESS OF
LIABILITIES - 1.1% 1,282,264
------------
NET ASSETS - 100.0% $114,131,162
============
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, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES(a) (100.0%)
Fifth Third All Cap Value Fund 1,198,232 $ 15,001,871
Fifth Third Disciplined Large Cap
Value Fund 2,269,273 19,402,280
Fifth Third High Yield Bond Fund 457,934 3,993,189
Fifth Third Institutional Money
Market Fund 1,899,633 1,899,633
Fifth Third International Equity
Fund 4,401,490 31,910,799
Fifth Third Mid Cap Growth Fund * 2,066,794 15,170,265
Fifth Third Quality Growth Fund 1,534,459 19,088,675
Fifth Third Short Term Bond Fund 1,839,457 17,162,133
Fifth Third Small Cap Growth Fund * 1,263,159 7,680,005
Fifth Third Small Cap Value Fund 601,499 8,108,213
Fifth Third Structured Large Cap
Plus Fund 2,387,141 21,603,630
Fifth Third Total Return Bond Fund 5,381,545 45,581,682
------------
TOTAL INVESTMENTS IN AFFILIATES 206,602,375
------------
TOTAL INVESTMENTS (COST
$257,796,770) - 100.0% 206,602,375
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.0)% (20,235)
------------
NET ASSETS - 100.0% $206,582,140
============
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.
90
LIFEMODEL MODERATE(SM)
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (a) (100.0%)
Fifth Third All Cap Value Fund 1,146,682 $ 14,356,452
Fifth Third Disciplined Large Cap
Value Fund 2,444,814 20,903,157
Fifth Third High Yield Bond Fund 1,155,399 10,075,083
Fifth Third Institutional Money
Market Fund 2,060,113 2,060,114
Fifth Third International Equity
Fund 4,977,695 36,088,288
Fifth Third Mid Cap Growth Fund * 2,273,434 16,687,003
Fifth Third Quality Growth Fund 1,735,469 21,589,232
Fifth Third Short Term Bond Fund 5,030,377 46,933,419
Fifth Third Small Cap Growth Fund * 1,302,449 7,918,888
Fifth Third Small Cap Value Fund 661,171 8,912,591
Fifth Third Structured Large Cap
Plus Fund 2,316,815 20,967,174
Fifth Third Total Return Bond Fund 14,585,187 123,536,537
------------
TOTAL INVESTMENTS IN AFFILIATES 330,027,938
------------
TOTAL INVESTMENTS (COST
$403,461,981) - 100.0% 330,027,938
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.0)% (81,042)
------------
NET ASSETS - 100.0% $329,946,896
============
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, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (a) (100.0%)
Fifth Third All Cap Value Fund 215,492 $ 2,697,960
Fifth Third Disciplined Large Cap
Value Fund 305,594 2,612,833
Fifth Third High Yield Bond Fund 300,490 2,620,272
Fifth Third Institutional Money
Market Fund 1,041,254 1,041,254
Fifth Third International Equity
Fund 723,934 5,248,518
Fifth Third Mid Cap Growth Fund * 427,786 3,139,952
Fifth Third Quality Growth Fund 225,808 2,809,058
Fifth Third Short Term Bond Fund 1,020,774 9,523,818
Fifth Third Small Cap Growth Fund * 260,313 1,582,704
Fifth Third Small Cap Value Fund 129,101 1,740,278
Fifth Third Structured Large Cap
Plus Fund 459,322 4,156,865
Fifth Third Total Return Bond Fund 2,940,794 24,908,524
------------
TOTAL INVESTMENTS IN AFFILIATES 62,082,036
------------
TOTAL INVESTMENTS (COST
$72,901,186) - 100.0% 62,082,036
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.0)% (4,028)
------------
NET ASSETS - 100.0% $ 62,078,008
============
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.
91
LIFEMODEL CONSERVATIVE(SM)
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (a) (99.9%)
Fifth Third All Cap Value Fund 66,322 $ 830,351
Fifth Third Disciplined Large Cap
Value Fund 96,737 827,097
Fifth Third High Yield Bond Fund 242,971 2,118,709
Fifth Third Institutional Money
Market Fund 79,807 79,807
Fifth Third International Equity
Fund 228,786 1,658,701
Fifth Third Mid Cap Growth Fund * 106,756 783,593
Fifth Third Quality Growth Fund 65,170 810,717
Fifth Third Short Term Bond Fund 956,216 8,921,493
Fifth Third Small Cap Growth Fund * 65,210 396,475
Fifth Third Small Cap Value Fund 33,034 445,293
Fifth Third Structured Large Cap
Plus Fund 145,791 1,319,406
Fifth Third Total Return Bond Fund 3,000,313 25,412,650
------------
TOTAL INVESTMENTS IN AFFILIATES 43,604,292
------------
TOTAL INVESTMENTS (COST $50,905,362) - 99.9% 43,604,292
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 53,194
------------
NET ASSETS - 100.0% $ 43,657,486
============
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, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS (82.8%)
AEROSPACE (0.5%)
BE Aerospace, Inc., 8.50%, 7/1/18,
(Callable 7/1/13 @ 104.25) $ 246,000 $ 244,770
------------
AUTOMOTIVE & AUTO PARTS (6.1%)
Asbury Automotive Group, Inc.,
7.63%, 3/15/17, (Callable
3/15/12 @ 103.813) 18,000 14,040
Asbury Automotive Group, Inc., 8.00%,
3/15/14, (Callable 8/31/09 @ 104) 750,000 652,500
Ford Motor Credit Co. LLC, 8.00%,
12/15/16 601,000 538,690
GMAC Inc., 6.63%, 5/15/12 (b) 474,000 428,970
GMAC, Inc., 6.88%, 9/15/11 (b) 474,000 437,265
Goodyear Tire & Rubber Co. (The),
10.50%, 5/15/16, (Callable
5/15/12 @ 107.875) 116,000 124,410
Penske Auto Group, Inc., 7.75%,
12/15/16, (Callable
12/15/11 @ 103.875) 548,000 465,800
Tenneco, Inc., Series B, 10.25%,
7/15/13, (Callable
8/31/09 @ 103.417) 500,000 502,500
------------
3,164,175
------------
BROADCASTING (0.9%)
Fisher Communications, Inc., 8.63%,
9/15/14, (Callable 9/15/09
@ 104.3125) 504,000 458,640
------------
BUILDING MATERIALS (2.6%)
Belden, Inc., 7.00%, 3/15/17,
(Callable 3/15/12 @ 103.5) 110,000 96,800
General Cable Corp., 7.13%, 4/1/17,
(Callable 4/1/12 @ 103.563) 18,000 17,100
Gibraltar Industries, Inc., Series B,
8.00%, 12/1/15, (Callable
12/1/10 @ 104) 750,000 577,500
US Concrete, Inc., 8.38%, 4/1/14,
(Callable 8/31/09 @ 104.188) 1,000,000 642,500
------------
1,333,900
------------
CABLE/SATELLITE TV (4.2%)
CSC Holdings, Inc., 8.63%, 2/15/19 (b) 366,000 376,980
DirecTV Holdings LLC/DirecTV
Financing Co., Inc., 7.63%, 5/15/16,
(Callable 5/15/12 @ 103.813) 742,000 751,275
DirecTV Holdings LLC/DirecTV
Financing Co., Inc., 8.38%, 3/15/13,
(Callable 8/31/09 @ 102.792) 482,000 492,243
GCI, Inc., 7.25%, 2/15/14, (Callable
8/31/09 @ 103.625) 582,000 541,260
------------
2,161,758
------------
Continued
92
HIGH YIELD BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
CAPITAL GOODS (1.5%)
Case New Holland, Inc., 7.13%,
3/1/14, (Callable 3/1/10 @ 103.563) $ 500,000 $ 470,000
Mueller Water Products, Inc., 7.38%,
6/1/17, (Callable 6/1/12 @ 103.688) 460,000 336,950
------------
806,950
------------
CHEMICALS (1.4%)
PolyOne Corp., 8.88%, 5/1/12 750,000 714,375
------------
CONSUMER PRODUCTS (5.3%)
Jarden Corp., 7.50%, 5/1/17,
(Callable 5/1/12 @ 103.75) 1,098,000 1,054,080
Sealy Mattress Co., 8.25%, 6/15/14,
(Callable 8/31/09 @ 104.125) 630,000 574,875
Sealy Mattress Co., 10.88%, 4/15/16,
(Callable 4/15/12 @ 108.156) (b) 38,000 41,420
Visant Holding Corp., 8.75%, 12/1/13,
(Callable 8/31/09 @ 106.563) 1,077,000 1,082,385
------------
2,752,760
------------
CONTAINERS (1.3%)
Solo Cup Co., 8.50%, 2/15/14,
(Callable 8/31/09 @ 104.25) 750,000 654,375
------------
ENERGY (9.4%)
Basic Energy Services, Inc., 7.13%,
4/15/16, (Callable 4/15/11 @ 103.563) 750,000 532,500
Berry Petroleum Co., 8.25%, 11/1/16,
(Callable 11/1/11 @ 104.125) 926,000 831,085
Chesapeake Energy Corp., 6.50%,
8/15/17 1,027,000 929,435
Chesapeake Energy Corp., 9.50%,
2/15/15 246,000 261,067
Dresser-Rand Group, Inc., 7.38%,
11/1/14, (Callable 11/1/09 @ 103.688) 350,000 339,500
Forest Oil Corp., 7.25%, 6/15/19,
(Callable 6/15/12 @ 103.625) 12,000 11,415
Helix Energy Solutions Group, Inc.,
9.50%, 1/15/16, (Callable
1/15/12 @ 104.75) (b) 356,000 327,520
Hilcorp Energy I L.P./Hilcorp Finance
Co., 7.75%, 11/1/15, (Callable
11/1/10 @ 103.875) (b) 506,000 450,340
Hilcorp Energy I L.P./Hilcorp Finance
Co., 9.00%, 6/1/16, (Callable
6/1/11 @ 104.5) (b) 87,000 80,040
PetroHawk Energy Corp., 10.50%,
8/1/14, (Callable 2/1/12 @ 110.5) (b) 292,000 312,440
United Refining Co., Series 2,
10.50%, 8/15/12, (Callable
8/31/09 @ 102.625) 1,022,000 807,380
------------
4,882,722
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
FINANCIAL SERVICES (0.6%)
Nuveen Investments, Inc., 10.50%,
11/15/15, (Callable
11/15/11 @ 105.25) (b) $ 412,000 $ 292,520
------------
FOOD-RETAIL (0.7%)
Ingles Markets, Inc., 8.88%, 5/15/17,
(Callable 5/15/13 @ 104.438) (b) 382,000 386,775
------------
HEALTHCARE (6.9%)
Apria Healthcare Group, Inc., 11.25%,
11/1/14, (Callable
11/1/11 @ 105.625) (b) 564,000 573,870
Axcan Intermediate Holdings, Inc.,
9.25%, 3/1/15, (Callable
3/1/11 @ 106.938) 500,000 517,500
CHS/Community Health Systems, Inc.,
8.88%, 7/15/15, (Callable
7/15/11 @ 104.438) 258,000 265,740
HCA, Inc., 5.75%, 3/15/14 369,000 324,720
HCA, Inc., 6.50%, 2/15/16 31,000 27,512
HCA, Inc., 9.63%, 11/15/16, (Callable
11/15/11 @ 104.813)(d) 375,000 390,938
IASIS Healthcare LLC / IASIS Capital
Corp., 8.75%, 6/15/14, (Callable
8/31/09 @ 104.375) 371,000 369,145
Invacare Corp., 9.75%, 2/15/15,
(Callable 2/15/11 @ 104.875) 637,000 649,740
Stewart Enterprises, Inc., 6.25%,
2/15/13, (Callable 8/31/09 @ 103.125) 250,000 240,625
Universal Hospital Services, Inc.,
4.64%, 6/1/15, (Callable
8/31/09 @ 102) (a) 275,000 231,000
------------
3,590,790
------------
HOMEBUILDERS/REAL ESTATE (3.4%)
Beazer Homes USA, Inc., 6.88%,
7/15/15, (Callable 7/15/10 @ 103.438) 750,000 414,375
KB Home, 7.25%, 6/15/18 750,000 682,500
M/I Homes, Inc., 6.88%, 4/1/12 850,000 692,750
------------
1,789,625
------------
HOTELS RESTAURANTS & LEISURE (2.4%)
Wyndham Worldwide Corp., 9.88%,
5/1/14 1,225,000 1,269,686
------------
MEDIA (1.7%)
Lamar Media Corp., 6.63%, 8/15/15,
(Callable 8/15/10 @ 103.313) 70,000 61,600
Lamar Media Corp., 7.25%, 1/1/13,
(Callable 8/31/09 @ 102.417) 311,000 300,115
Lamar Media Corp., Series B, 6.63%,
8/15/15, (Callable 8/15/10 @ 103.313) 209,000 179,740
WMG Acquisition Corp., 7.38%,
4/15/14, (Callable 8/31/09 @ 103.688) 362,000 327,610
------------
869,065
------------
Continued
93
HIGH YIELD BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
METALS & MINING (0.9%)
Massey Energy Co., 6.88%, 12/15/13,
(Callable 12/15/09 @ 103.438) $ 500,000 $ 482,500
------------
PAPER (3.6%)
Buckeye Technologies, Inc., 8.50%,
10/1/13, (Callable 8/31/09 @ 104.25) 250,000 242,500
Cellu Tissue Holdings, Inc., 11.50%,
6/1/14, (Callable 6/1/11 @ 111.5) (b) 325,000 325,000
Cenveo Corp., 7.88%, 12/1/13,
(Callable 8/31/09 @ 103.938) 1,112,000 795,080
International Paper Co., 7.95%,
6/15/18 96,000 102,260
Sealed Air Corp., 7.88%, 6/15/17,
(Callable 6/15/13 @ 103.938) (b) 398,000 420,311
------------
1,885,151
------------
PUBLISHING/PRINTING (0.9%)
Dex Media West LLC/Dex Media West
Finance Co., Series B, 9.88%,
8/15/13, (Callable 8/31/09 @ 103.292) (e) 195,000 36,075
Valassis Communications, Inc., 8.25%,
3/1/15, (Callable 3/1/11 @ 104.125) 521,000 442,850
------------
478,925
------------
REAL ESTATE INVESTMENT TRUSTS (0.5%)
PPF Funding, Inc., 5.70%, 4/15/17 (b) 409,000 252,185
------------
RETAIL (1.7%)
Ace Hardware Corp., 9.13%, 6/1/16,
(Callable 6/1/12 @ 104.563) (b) 864,000 868,320
------------
SERVICES (1.6%)
ARAMARK Corp., 8.50%, 2/1/15,
(Callable 2/1/11 @ 104.25) 12,000 12,090
Ashtead Capital, Inc., 9.00%,
8/15/11 @ 104.5) (b) 329,000 282,940
Expedia, Inc., 8.50%, 7/1/16,
(Callable 7/1/12 @ 104.25) (b) 311,000 315,665
RSC Equipment Rental, Inc., 10.00%,
7/15/17, (Callable 7/15/13 @ 105) (b) 119,000 125,247
United Rentals North America, Inc.,
10.88%, 6/15/16, (Callable
6/15/13 @ 105.438) (b) 125,000 125,000
------------
860,942
------------
STEEL (2.1%)
Ryerson, Inc., 12.00%, 11/1/15,
(Callable 11/1/11 @ 106) 58,000 51,620
Steel Dynamics, Inc., 7.38%, 11/1/12 1,064,000 1,056,020
------------
1,107,640
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
TECHNOLOGY (2.8%)
First Data Corp., 9.88%, 9/24/15 (b) $ 87,000 $ 73,406
First Data Corp., 9.88%, 9/24/15,
(Callable 9/30/11 @ 104.938) 756,000 637,875
Sungard Data Systems, Inc., 9.13%,
8/15/13, (Callable 8/31/09 @ 104.563) 750,000 765,000
------------
1,476,281
------------
TELECOMMUNICATIONS (9.0%)
CC Holdings GS V LLC/Crown Castle GS
III Corp., 7.75%, 5/1/17, (Callable
5/1/13 @ 103.875) (b) 500,000 510,000
Centennial Cellular Operating
Co./Centennial Communications Corp.,
10.13%, 6/15/13, (Callable
8/31/09 @ 103.375) 867,000 886,507
Cincinnati Bell, Inc., 7.00%,
2/15/15, (Callable 2/15/10 @ 103.5) 237,000 224,558
Cincinnati Bell, Inc., 7.25%,
7/15/13, (Callable 8/31/09 @ 102.417) 24,000 23,310
Cricket Communications, Inc., 9.38%,
11/1/14, (Callable 11/1/10 @ 104.6875) 360,000 365,400
Cricket Communications, Inc., 10.00%,
7/15/15, (Callable 7/15/12 @ 105) 360,000 371,700
Crown Castle International Corp.,
9.00%, 1/15/15, (Callable
1/15/13 @ 105.625) 62,000 65,488
Frontier Communications Corp., 6.25%,
1/15/13 272,000 261,800
MetroPCS Wireless, Inc., 9.25%,
11/1/14, (Callable
11/1/10 @ 104.625) (b) 358,000 370,530
Nextel Communications, Inc., Series
E, 6.88%, 10/31/13, (Callable
8/31/09 @ 103.438) 277,000 252,762
Qwest Communications International,
Inc., 7.50%, 2/15/14, (Callable
8/31/09 @ 103.75) 350,000 342,125
Qwest Corp., 7.88%, 9/1/11 500,000 510,000
Sprint Capital Corp., 8.75%, 3/15/32 277,000 238,566
Windstream Corp., 8.13%, 8/1/13 181,000 182,810
Windstream Corp., 8.63%, 8/1/16,
(Callable 8/1/11 @ 104.313) 71,000 72,065
------------
4,677,621
------------
TRANSPORTATION EX AIR/RAIL (0.5%)
Overseas Shipholding Group, Inc.,
8.75%, 12/1/13 280,000 258,300
------------
Continued
94
HIGH YIELD BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
UTILITIES (10.3%)
AES Corp. (The), 8.00%, 10/15/17 $ 201,000 $ 196,980
Atlas Pipeline Partners L.P., 8.75%,
6/15/18, (Callable 6/15/13 @ 104.375) 328,000 262,400
Copano Energy LLC/Copano Energy
Finance Corp., 8.13%, 3/1/16,
(Callable 3/1/11 @ 104.0625) 90,000 87,750
Dynegy Holdings, Inc., 7.75%, 6/1/19 350,000 278,688
Edison Mission Energy, 7.00%, 5/15/17 251,000 199,859
Edison Mission Energy, 7.50%, 6/15/13 165,000 150,562
Holly Energy Partners L.P., 6.25%,
3/1/15, (Callable 3/1/10 @ 103.125) 500,000 445,000
MarkWest Energy Partners L.P. /
MarkWest Energy Finance Corp., Series
B, 8.75%, 4/15/18, (Callable
4/15/13 @ 104.375) 83,000 77,190
Orion Power Holdings, Inc., 12.00%,
5/1/10 510,000 527,850
PNM Resources, Inc., 9.25%, 5/15/15 430,000 417,100
Regency Energy Partners L.P./Regency
Energy Finance Corp., 9.38%, 6/1/16,
(Callable 6/1/13 @ 104.688) (b) 750,000 765,000
RRI Energy, Inc., 7.63%, 6/15/14 85,000 79,050
Sabine Pass Liquified Natural Gas
L.P., 7.25%, 11/30/13 734,000 628,488
Targa Resources Partners L.P./Targa
Resources Partners Finance Corp.,
8.25%, 7/1/16, (Callable
7/1/12 @ 104.125) (b) 903,000 801,412
TEPPCO Partners L.P., 7.00%, 6/1/67,
(Callable 6/1/17 @ 100) (a) 550,000 424,185
------------
5,341,514
------------
TOTAL CORPORATE BONDS 43,062,265
------------
FOREIGN BONDS (13.7%)
CABLE/SATELLITE TV (0.7%)
Videotron Ltee, 9.13%, 4/15/18,
(Callable 4/15/13 @ 104.563) 300,000 311,250
Virgin Media Finance PLC, 8.75%,
4/15/14, (Callable 9/1/09 @ 104.375) 72,000 72,720
------------
383,970
------------
ENERGY (0.8%)
Connacher Oil and Gas, Ltd., 10.25%,
12/15/15, (Callable
12/15/11 @ 105.125) (b) 615,000 390,525
------------
MEDIA (2.0%)
Quebecor Media, Inc., 7.75%, 3/15/16,
(Callable 3/15/11 @ 103.875) 1,111,000 1,055,450
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
FOREIGN BONDS, CONTINUED
METALS & MINING (3.0%)
Novelis, Inc., 7.25%, 2/15/15,
(Callable 2/15/10 @ 103.625) $ 1,100,000 $ 896,500
Teck Resources, Ltd., 10.25%,
5/15/16, (Callable
5/15/13 @ 105.125) (b) 145,000 164,212
Teck Resources, Ltd., 10.75%,
5/15/19, (Callable
5/15/14 @ 105.375) (b) 406,000 472,483
------------
1,533,195
------------
PAPER (0.0%)
PE Paper Escrow GmbH, 12.00%, 8/1/14,
(Callable 8/1/12 @ 106) (b) 24,000 23,823
------------
SERVICES (0.3%)
Ashtead Holdings PLC, 8.63%, 8/1/15,
(Callable 8/1/10 @ 104.313) (b) 151,000 129,860
------------
TECHNOLOGY (1.3%)
NXP BV / NXP Funding LLC, 7.88%,
10/15/14, (Callable
10/15/10 @ 103.938) 160,000 111,200
Sensata Technologies BV, 8.00%,
5/1/14, (Callable 5/1/10 @ 104) 714,000 578,340
------------
689,540
------------
TELECOMMUNICATIONS (1.3%)
Wind Acquisition Finance SA, 11.75%,
7/15/17, (Callable
7/15/13 @ 105.875) (b) 650,000 695,500
------------
TRANSPORTATION EX AIR/RAIL (1.6%)
Stena AB, 7.00%, 12/1/16, (Callable
12/1/09 @ 103.5) 250,000 198,125
Stena AB, 7.50%, 11/1/13, (Callable
11/1/09 @ 102.5) 750,000 637,500
------------
835,625
------------
UTILITIES (2.7%)
Gibson Energy ULC/GEP Midstream
Finance Corp., 11.75%, 5/27/14,
(Callable 6/1/12 @ 105.875) (b) 626,000 622,870
Intergen NV, 9.00%, 6/30/17,
(Callable 6/30/12 @ 104.5) (b) 800,000 788,000
------------
1,410,870
------------
TOTAL FOREIGN BONDS 7,148,358
------------
Continued
95
HIGH YIELD BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
SHARES VALUE
------------- ------------
PREFERRED STOCKS (0.2%)
AUTOMOTIVE & AUTO PARTS (0.2%)
Preferred Blocker, Inc., 7.00%(b) 200 $ 92,094
------------
TOTAL PREFERRED STOCKS 92,094
------------
INVESTMENTS IN AFFILIATES (0.4%)
Fifth Third Institutional Money
Market Fund (c) 231,361 231,361
------------
TOTAL INVESTMENTS IN AFFILIATES 231,361
------------
TOTAL INVESTMENTS (COST $53,340,065) - 97.1% 50,534,078
OTHER ASSETS IN EXCESS OF LIABILITIES - 2.9% 1,490,739
------------
NET ASSETS - 100.0% $ 52,024,817
============
NOTES TO SCHEDULE OF INVESTMENTS
(a) Variable rate security. Rate presented represents rate in effect at July
31, 2009.
(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) PIK (payment-in-kind) security. Bond that pays interest in the form of
additional bonds.
(e) Defaulted security.
At July 31, 2009, High Yield Bond's investments were in the following countries:
COUNTRY
- --------------------------------------------------------------------------------
Austria --^
Canada 6.5%
Great Britain 0.4%
Luxembourg 1.4%
Netherlands 2.9%
Sweden 1.7%
United States 87.1%
------------
TOTAL 100.0%
============
- ----------
^ Amount is less than 0.05%.
See notes to schedules of investments
and notes to financial statements.
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
ASSET-BACKED SECURITIES (6.4%)
AUTOMOBILE ABS OTHER (1.1%)
Hyundai Auto Receivables Trust,
Series 2006-B, Class C, 5.25%,
5/15/13 (e) $ 1,990,202 $ 1,983,958
Susquehanna Auto Lease Trust, Series
2007-1, Class B, 5.31%, 7/14/10 (b) 1,000,000 1,003,286
Truck Retail Installment Paper Corp.,
Series 2005-1A, Class A, 0.56%,
12/15/16 (a)(b)(e) 1,950,000 1,605,948
------------
4,593,192
------------
AUTOMOBILES SEQUENTIAL (0.3%)
Long Beach Auto Receivables Trust,
Series 2007-A, Class A3, 4.97%,
10/15/11 453,526 454,158
Prestige Auto Receivables Trust,
Series 2006-1A, Class A2, 5.25%,
6/17/13(b) 869,259 880,387
------------
1,334,545
------------
HOME EQUITY OTHER (1.2%)
Flagstar Home Equity Loan Trust,
Series 2007-1A, Class AF2, 5.77%,
1/25/35(b) 1,915,000 1,459,774
New Century Home Equity Loan Trust,
Series 2005-A, Class A5W, 5.29%,
8/25/35 4,000,000 1,732,387
Renaissance Home Equity Loan Trust,
Series 2005-2, Class AF4, 4.93%,
8/25/35 2,620,000 1,713,239
------------
4,905,400
------------
HOME EQUITY SEQUENTIAL (0.3%)
Irwin Home Equity Corp., Series
2006-3, Class 2A2, 5.83%, 9/25/37 (b) 1,225,000 650,233
Residential Funding Mortgage
Securities II, Inc., Series 2006-HI3,
Class A4, 6.31%, 2/25/36 (h) 1,500,000 422,522
------------
1,072,755
------------
MANUFACTURED HOUSING ABS OTHER (0.4%)
Mid-State Trust, Series 2005-1, Class
M2, 7.08%, 1/15/40 2,569,889 1,691,843
------------
MANUFACTURED HOUSING SEQUENTIAL (0.7%)
Vanderbilt Acquisition Loan Trust,
Series 2002-1, Class A4, 6.57%,
5/7/27 (a) 2,840,000 2,611,847
------------
OTHER ABS (2.4%)
Aerco, Ltd., Series 2A, Class A3,
0.75%, 7/15/25 (a)(b)(e)(h) 1,700,384 680,153
Continued
96
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
ASSET-BACKED SECURITIES, CONTINUED
OTHER ABS, CONTINUED
Credit-Based Asset Servicing and
Securitization LLC, Series 2006-CB1,
Class AF4, 5.44%, 1/25/36 $ 5,986,636 $ 2,990,207
First Franklin Mortgage Loan Asset
Backed Certificates, Series
2004-FF11, Class 1A2, 0.64%,
1/25/35 (a) 51,824 37,008
First Franklin Mortgage Loan Asset
Backed Certificates, Series 2005-FFA,
Class M3, 5.52%, 3/25/25 600,000 102,133
Popular ABS Mortgage Pass-Through
Trust, Series 2005-4, Class AF3,
4.97%, 9/25/35 (a) 85,912 85,234
Renaissance Home Equity Loan Trust,
Series 2006-1, Class AF4, 6.01%,
5/25/36 1,645,000 975,698
Residential Asset Mortgage Products,
Inc., Series 2002-RZ3, Class M1,
5.78%, 8/25/32 (a) 284,842 278,916
Residential Asset Mortgage Products,
Inc., Series 2003-RZ5, Class A7,
4.97%, 9/25/33 2,583,849 2,075,935
Small Business Administration, Series
2005-P10B, Class 1, 4.94%, 8/10/15 (e) 2,280,165 2,379,210
------------
9,604,494
------------
TOTAL ASSET-BACKED SECURITIES 25,814,076
------------
CORPORATE BONDS (17.0%)
BEVERAGES-NON ALCOHOLIC (0.4%)
Coca-Cola Enterprises, Inc., 7.38%,
3/3/14 1,275,000 1,484,606
------------
CABLE TV (0.5%)
Comcast Corp., 5.70%, 7/1/19 1,000,000 1,066,100
COX Communications, Inc., 5.50%,
10/1/15 800,000 822,741
------------
1,888,841
------------
CHEMICALS-DIVERSIFIED (0.6%)
EI Du Pont de Nemours & Co., 4.75%,
3/15/15 2,200,000 2,338,613
------------
COMMERCIAL BANKS-CENTRAL U.S. (0.6%)
National City Bank, 5.25%, 12/15/16 (b) 1,340,000 1,260,913
SunTrust Bank, 3.00%, 11/16/11 1,000,000 1,031,414
------------
2,292,327
------------
COMMERCIAL BANKS-EASTERN U.S. (0.3%)
Manufacturers & Traders Trust Co.,
2.10%, 4/1/13, (Callable
10/1/09 @ 100) (a) 1,075,000 849,276
Mercantile Bankshares Corp., Series
B, 4.63%, 4/15/13 500,000 454,072
------------
1,303,348
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
COMMERCIAL BANKS NON-U.S. (0.2%)
Westpac Capital Trust IV, 5.26%,
12/29/49 (a)(b)(f) $ 1,445,000 $ 980,620
------------
COMMERCIAL BANKS-SOUTHERN U.S. (1.6%)
Hibernia Corp., 5.35%, 5/1/14 2,845,000 2,393,410
Wachovia Bank NA, 5.85%, 2/1/37 (e) 4,500,000 4,143,564
------------
6,536,974
------------
DIVERSIFIED FINANCIAL SERVICES (0.9%)
American Express Travel Related
Services Co., Inc., 5.25%, 11/21/11 (b) 1,000,000 1,007,496
General Electric Capital Corp.,
4.80%, 5/1/13 2,725,000 2,777,933
------------
3,785,429
------------
ELECTRIC-INTEGRATED (2.3%)
Florida Power & Light Co., 5.96%,
4/1/39 1,565,000 1,726,464
Florida Power Corp., Series A, 5.80%,
9/15/17 1,000,000 1,090,951
Public Service Electric & Gas Co.,
5.00%, 8/15/14 1,200,000 1,284,656
Southern Power Co., Series B, 6.25%,
7/15/12 2,260,000 2,475,633
Virginia Electric and Power Co.,
5.95%, 9/15/17 1,000,000 1,093,947
Virginia Electric and Power Co.,
6.35%, 11/30/37 1,450,000 1,644,402
------------
9,316,053
------------
FINANCE-COMMERCIAL (0.2%)
Caterpillar Financial Services Corp.,
5.13%, 10/12/11 950,000 997,899
------------
FINANCE-CONSUMER LOANS (1.9%)
HSBC Finance Corp., 6.38%, 10/15/11 2,000,000 2,052,874
John Deere Capital Corp., 5.50%,
4/13/17 1,225,000 1,273,243
John Deere Capital Corp., 7.00%,
3/15/12 3,950,000 4,382,055
------------
7,708,172
------------
FINANCE-INVESTMENT BANKER/
BROKER (1.4%)
Bear Stearns Cos. LLC (The), 6.40%,
10/2/17 350,000 374,247
Citigroup, Inc., 6.13%, 11/21/17 2,000,000 1,839,236
Goldman Sachs Group, Inc. (The),
6.13%, 2/15/33 1,100,000 1,135,510
JPMorgan Chase Capital XXI, Series U,
1.97%, 2/2/37, (Callable
2/2/12 @ 100) (a) 1,000,000 569,477
Merrill Lynch & Co., Inc., 5.70%,
5/2/17 2,000,000 1,764,446
------------
5,682,916
------------
Continued
97
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
FOOD-RETAIL (0.3%)
Kroger Co. (The), 7.50%, 1/15/14 $ 1,000,000 $ 1,138,572
------------
INVESTMENT MANAGEMENT/ADVISOR
SERVICES (0.3%)
Ameriprise Financial, Inc., 5.65%,
11/15/15 1,480,000 1,429,602
------------
MONEY CENTER BANKS (0.2%)
UBS Preferred Funding Trust I, 8.62%,
10/29/49 (a)(f) 925,000 693,750
------------
MULTI-LINE INSURANCE (1.1%)
American Financial Group, Inc.,
9.88%, 6/15/19 2,260,000 2,321,015
MetLife, Inc., 5.00%, 6/15/15 1,100,000 1,125,373
MetLife, Inc., 6.75%, 6/1/16 1,000,000 1,076,071
------------
4,522,459
------------
MULTIMEDIA (0.6%)
Time Warner, Inc., 7.70%, 5/1/32 492,000 544,757
Walt Disney Co. (The), 4.70%, 12/1/12 1,800,000 1,945,822
------------
2,490,579
------------
NETWORKING PRODUCTS (0.3%)
Cisco Systems, Inc., 4.95%, 2/15/19 1,000,000 1,050,363
------------
OIL REFINING & MARKETING (0.4%)
Premcor Refining Group, Inc. (The),
7.50%, 6/15/15, (Callable
8/31/09 @ 102.5) 1,500,000 1,538,412
------------
PROPERTY/CASUALTY INS (0.0%)
Travelers Property Casualty Corp.,
7.75%, 4/15/26 85,000 97,634
------------
REAL ESTATE INVESTMENT TRUSTS (0.4%)
Simon Property Group L.P., 5.63%,
8/15/14 1,790,000 1,767,093
------------
RETAIL-DISCOUNT (0.3%)
Target Corp., 5.38%, 5/1/17 1,150,000 1,208,139
------------
SPECIAL PURPOSE ENTITY (0.3%)
Principal Life Global Funding I,
5.13%, 10/15/13 (b) 1,090,000 1,057,655
------------
SUPER-REGIONAL BANKS-U.S. (1.2%)
BAC Capital Trust XIII, 1.03%,
3/15/43 (a)(f) 2,000,000 972,748
Bank of America Corp., 5.63%, 10/14/16 4,000,000 3,817,896
------------
4,790,644
------------
TELEPHONE-INTEGRATED (0.3%)
AT&T, Inc., 6.30%, 1/15/38 1,450,000 1,546,556
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
TRANSPORT-RAIL (0.4%)
Union Pacific Corp., 5.45%, 1/31/13 $ 1,380,000 $ 1,446,061
------------
TOTAL CORPORATE BONDS 69,093,317
------------
FOREIGN BONDS (2.7%)
FINANCE-OTHER SERVICES (0.7%)
BP Capital Markets PLC, 3.88%, 3/10/15 2,680,000 2,778,037
------------
OIL COMPANY-EXPLORATION &
PRODUCTION (0.8%)
Canadian Natural Resources, Ltd.,
6.25%, 3/15/38 1,000,000 1,089,370
Gazprom International SA, 7.20%,
2/1/20 (b) 2,264,433 2,236,128
------------
3,325,498
------------
SOVEREIGN (1.0%)
Brazil, Federal Republic, Series F,
10.00%, 1/1/14 BRL 8,340,000 4,116,195
------------
TELEPHONE-INTEGRATED (0.2%)
France Telecom SA, 8.50%, 3/1/31 650,000 882,485
------------
TOTAL FOREIGN BONDS 11,102,215
------------
MORTGAGE-BACKED SECURITIES (27.1%)
AGENCY COLLATERAL OTHER (0.5%)
Restructured Assets Certificates,
Series 2006-9, Class P, 12.07%,
12/31/49 (a)(b)(d)(h) 5,250,000 2,160,375
------------
CMBS OTHER (8.3%)
Bear Stearns Commercial Mortgage
Securities, Series 2004-T14, Class
A4, 5.20%, 1/12/41 (a) 2,000,000 1,984,885
Commercial Mortgage Asset Trust,
Series 1999-C1, Class B, 7.23%,
1/17/32 (a) 1,620,000 1,709,256
Crown Castle Towers LLC, Series
2005-1A, Class AFX, 4.64%, 6/15/35 (b) 4,000,000 3,960,000
CS First Boston Mortgage Securities
Corp., Series 2001-CK3, Class A4,
6.53%, 6/15/34 2,922,180 3,030,872
GE Capital Commercial Mortgage Corp.,
Series 2000-1, Class A2, 6.50%,
1/15/33 2,386,237 2,467,022
Greenwich Capital Commercial Funding
Corp., Series 2002-C1, Class A4,
4.95%, 1/11/35 1,000,000 1,032,295
Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A5,
4.88%, 6/10/36 5,125,000 5,047,933
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%,
8/10/38 (e) 3,315,580 3,311,691
Continued
98
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
MORTGAGE-BACKED SECURITIES, CONTINUED
CMBS OTHER, CONTINUED
LB-UBS Commercial Mortgage Trust,
Series 2003-C8, Class A4, 5.12%,
11/15/32 (a) $ 2,924,000 $ 2,936,574
LB-UBS Commercial Mortgage Trust,
Series 2005-C3, Class A2, 4.55%,
7/15/30 289,311 287,115
Morgan Stanley Dean Witter Capital I,
Series 2003-TOP9, Class A2, 4.74%,
11/13/36 2,590,000 2,632,917
Nomura Asset Securities Corp., Series
1998-D6, Class A2, 6.97%, 3/15/30 (a) 1,000,000 1,099,335
Nomura Asset Securities Corp., Series
1998-D6, Class A4, 7.55%, 3/15/30 (a) 1,600,000 1,676,632
Salomon Brothers Mortgage Securities
VII, Inc., Series 2002-KEY2, Class
A3, 4.87%, 3/18/36 2,270,000 2,290,016
------------
33,466,543
------------
CMBS SUBORDINATED (3.3%)
CS First Boston Mortgage Securities
Corp., Series 2002-CKN2, Class C1,
6.38%, 4/15/37 (a) 1,180,000 1,147,788
GS Mortgage Securities Corp. II,
Series 2004-C1, Class B, 4.46%,
10/10/28 (a) 2,740,000 2,718,796
GS Mortgage Securities Corp. II,
Series 2004-C1, Class C, 4.52%,
10/10/28 (a) 4,093,000 4,062,424
Salomon Brothers Mortgage Securities
VII, Inc., Series 2002-KEY2, Class C,
5.05%, 3/18/36 (a) 1,417,000 1,337,225
SBA CMBS Trust, Series 2006-1A, Class
D, 5.85%, 11/15/36 (b) 3,100,000 3,007,000
SBA CMBS Trust, Series 2006-1A, Class
E, 6.17%, 11/15/36 (b) 1,350,000 1,309,500
------------
13,582,733
------------
WL COLLATERAL CMO MEZZANINE (0.0%)
Homebanc Mortgage Trust, Series
2004-1, Class 2M2, 2.01%, 8/25/29 (a) 331,229 68,269
------------
WL COLLATERAL CMO OTHER (8.7%)
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-10, Class 12A3,
4.56%, 1/25/35 (a) 812,370 635,825
Chase Mortgage Finance Corp., Series
2006-A1, Class 4A1, 6.04%, 9/25/36 (a) 6,523,941 5,499,205
Chaseflex Trust, Series 2006-1, Class
A4, 6.30%, 6/25/36 (a) 7,344,000 3,674,783
Chaseflex Trust, Series 2006-2, Class
A4, 6.34%, 9/25/36 (a) 2,815,000 1,159,141
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust, Series 2005-4,
Class A2, 5.05%, 9/25/35 (a) 657,861 626,406
GMAC Mortgage Corp. Loan Trust,
Series 2003-GH2, Class A4, 5.00%,
10/25/33 2,014,322 1,659,747
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
MORTGAGE-BACKED SECURITIES, CONTINUED
WL COLLATERAL CMO OTHER, CONTINUED
Homebanc Mortgage Trust, Series
2004-2, Class A2, 0.74%,
12/25/34 (a)(e) $ 1,174,473 $ 565,860
Homebanc Mortgage Trust, Series
2006-1, Class 1A1, 3.87%,
4/25/37 (a)(e) 416,013 260,002
Homebanc Mortgage Trust, Series
2006-1, Class 2A1, 5.98%,
4/25/37 (a) 2,948,280 1,963,172
Indymac Index Mortgage Loan Trust,
Series 2005-AR9, Class 1A1, 3.64%,
7/25/35 (a) 1,758,657 997,833
JP Morgan Mortgage Trust, Series
2005-A1, Class 2A1, 4.82%,
2/25/35 (a) 675,022 642,992
JP Morgan Mortgage Trust, Series
2005-A2, Class 3A2, 4.89%,
4/25/35 (a) 3,000,000 2,455,252
JP Morgan Mortgage Trust, Series
2005-A2, Class 7CB1, 4.88%,
4/25/35 (a) 2,276,981 2,111,342
JP Morgan Mortgage Trust, Series
2005-A3, Class 7CA1, 5.11%,
6/25/35 (a) 1,629,151 1,289,406
JP Morgan Mortgage Trust, Series
2005-ALT1, Class 4A1, 5.65%,
10/25/35 (a) 2,919,079 2,052,547
JP Morgan Mortgage Trust, Series
2006-A2, Class 3A2, 5.68%,
4/25/36 (a) 7,620,131 5,739,583
Morgan Stanley Mortgage Loan Trust,
Series 2004-4, Class 3A, 5.00%,
8/25/19 1,487,803 1,470,601
Residential Accredit Loans, Inc.,
Series 2004-QA1, Class A1, 0.56%,
3/25/34 (a)(e) 932,783 533,348
Residential Accredit Loans, Inc.,
Series 2005-QA12, Class CB1, 5.44%,
12/25/35 (a) 1,956,636 1,022,174
Structured Asset Securities Corp.,
Series 2004-21XS, Class 2A6B, 5.15%,
12/25/34 1,131,384 1,009,528
------------
35,368,747
------------
WL COLLATERAL CMO SEQUENTIAL (3.6%)
Chase Mortgage Finance Corp., Series
2006-A1, Class 2A3, 6.00%,
9/25/36 (a) 2,000,000 1,021,370
Countrywide Alternative Loan Trust,
Series 2005-J3, Class 3A1, 6.50%,
9/25/34 323,215 264,835
Deutsche ALT-A Securities, Inc.
Alternate Loan Trust, Series
2006-AB3, Class A3, 6.51%, 7/25/36 (a) 2,575,000 982,241
JP Morgan Alternative Loan Trust,
Series 2005-S1, Class 1A2, 5.50%,
12/25/35 1,617,991 1,055,904
Continued
99
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
MORTGAGE-BACKED SECURITIES, CONTINUED
WL COLLATERAL CMO SEQUENTIAL, CONTINUED
JP Morgan Alternative Loan Trust,
Series 2006-A5, Class 2A6, 5.80%,
10/25/36 (a) $ 5,640,000 $ 1,646,629
JP Morgan Alternative Loan Trust,
Series 2006-S3, Class A3A, 6.00%,
8/25/36 4,529,000 2,638,797
JP Morgan Mortgage Trust, Series
2006-A4, Class 2A2, 5.81%, 6/25/36 (a) 569,162 460,138
JP Morgan Mortgage Trust, Series
2006-A7, Class 3A2, 5.94%, 1/25/37 (a) 5,075,000 3,187,922
Wells Fargo Mortgage Backed
Securities Trust, Series 2003-N,
Class 2A3, 4.74%, 12/25/33 (a) 4,095,000 3,313,046
------------
14,570,882
------------
WL COLLATERAL PAC (0.3%)
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1, 4.25%,
3/25/34 1,297,220 1,217,017
------------
WL COLLATERAL SUPPORT (2.4%)
Bear Stearns Alt-A Trust, Series
2005-9, Class 21A2, 4.58%,
11/25/35 (a) 548,831 178,770
Chaseflex Trust, Series 2006-1, Class
A6, 6.29%, 6/25/36 (a) 5,193,519 2,738,822
JP Morgan Alternative Loan Trust,
Series 2006-A4, Class A7, 6.30%,
9/25/36 (a) 5,000,000 1,503,700
JP Morgan Alternative Loan Trust,
Series 2006-S1, Class 1A18, 6.00%,
3/25/36 3,150,180 1,568,691
Nomura Asset Acceptance Corp., Series
2004-AR4, Class 1A2, 4.87%,
12/25/34 (a) 772,939 164,921
Nomura Asset Acceptance Corp., Series
2005-AR2, Class 2A2, 5.52%,
5/25/35 (a) 934,196 343,729
Nomura Asset Acceptance Corp., Series
2005-AR3, Class 3A2, 5.64%,
7/25/35 (a) 1,580,986 945,040
Nomura Asset Acceptance Corp., Series
2005-AR5, Class 2A2, 5.63%,
10/25/35 (a) 1,098,580 291,139
Nomura Asset Acceptance Corp., Series
2006-AF1, Class 3A2, 6.52%,
6/25/36 (a) 1,809,411 194,485
Residential Funding Mortgage
Securities I, Series 2007-S2, Class
A10, 6.00%, 2/25/37 430,000 181,922
Wells Fargo Mortgage Backed
Securities Trust, Series 2005-AR7,
Class 2A2, 5.14%, 5/25/35 (a) 2,280,200 1,425,684
------------
9,536,903
------------
TOTAL MORTGAGE-BACKED SECURITIES 109,971,469
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
U.S. GOVERNMENT AGENCIES (42.1%)
FANNIE MAE (20.4%)
0.54%, 8/25/44 (a) $ 758,828 $ 716,764
0.59%, 4/25/36 (a)(e) 3,749,277 3,670,852
3.88%, 7/12/13 5,900,000 6,225,645
4.50%, 4/1/20 3,908,611 4,081,278
5.00%, 5/1/25 1,473,928 1,520,610
5.00%, 1/1/34 (e) 8,050,907 8,287,662
5.11%, 8/1/34 (a) 85,938 90,335
5.50%, 12/25/20 1,873,659 1,961,036
5.50%, 2/1/25 907,541 949,548
5.50%, 3/1/33 (e) 6,683,408 6,956,067
5.50%, 12/25/33 900,000 937,365
5.50%, 5/25/34 3,150,000 2,687,478
5.50%, 3/1/35 1,132,171 1,176,944
5.50%, 6/1/35 513,811 534,131
5.50%, 11/1/35 764,437 794,668
5.50%, 11/1/36 1,427,802 1,482,036
5.50%, 1/1/37 3,453,490 3,584,023
5.50%, 4/25/37 3,205,208 3,164,983
5.50%, 8/1/37 2,665,942 2,765,538
6.00%, 5/1/17 117,554 125,503
6.00%, 5/1/18 326,375 347,426
6.00%, 2/1/22 2,433,320 2,587,105
6.00%, 1/1/33 262,656 277,804
6.00%, 8/25/33 (a) 1,720,305 1,686,968
6.00%, 7/1/35 3,150,172 3,315,111
6.00%, 9/1/35 1,584,009 1,666,946
6.00%, 1/1/36 2,881,224 3,043,447
6.00%, 12/1/36 943,400 991,321
6.00%, 1/1/37 3,399,290 3,571,962
6.00%, 7/1/38 8,041,699 8,438,427
6.50%, 7/1/16 399,321 429,512
6.50%, 6/1/17 129,026 138,781
6.50%, 8/1/28 110,290 119,398
6.50%, 6/1/29 96,905 104,786
6.50%, 4/1/32 237,091 255,781
6.50%, 6/1/32 486,340 524,679
6.50%, 7/1/32 790,434 852,876
6.50%, 3/1/33 163,154 175,811
6.50%, 8/1/36 661,062 705,754
7.00%, 6/1/32 167,626 185,094
7.00%, 8/1/32 404,266 443,897
7.00%, 9/1/34 87,668 95,982
7.00%, 9/1/36 1,044,572 1,139,694
7.50%, 6/1/28 118,891 132,100
------------
82,943,128
------------
Continued
100
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC (15.9%)
0.69%, 7/15/36 (a)(e) $ 1,129,953 $ 1,106,009
4.00%, 1/15/17 7,500,000 7,725,990
4.00%, 5/1/19 2,721,882 2,798,744
4.50%, 6/1/34 781,660 788,389
4.50%, 9/1/34 842,135 849,385
5.00%, 12/1/18 1,087,822 1,143,696
5.00%, 2/15/25 3,245,000 3,311,351
5.00%, 8/1/33 331,747 341,016
5.00%, 5/1/34 162,385 166,846
5.00%, 7/1/35 384,612 394,756
5.00%, 8/1/35 903,792 927,630
5.00%, 11/1/35 3,467,428 3,558,885
5.00%, 4/1/36 369,817 379,571
5.00%, 7/1/36 1,572,461 1,611,233
5.22%, 3/1/37 (a) 417,667 436,479
5.50%, 3/15/35 5,505,000 5,735,558
5.70%, 4/1/37 (a) 2,781,960 2,921,271
5.82%, 10/1/36 (a) 1,846,587 1,936,337
5.91%, 3/1/37 (a)(e) 6,142,479 6,480,854
6.00%, 12/15/21 2,521,579 2,606,035
6.00%, 9/1/33 262,767 277,264
6.00%, 2/1/38 4,557,410 4,781,076
6.09%, 1/1/37 (a) 5,160,442 5,452,243
6.14%, 2/1/37 (a) 4,886,903 5,159,624
6.50%, 1/1/29 977,243 1,054,477
6.50%, 7/1/32 157,118 169,241
6.50%, 9/1/32 72,669 78,185
6.50%, 5/15/34 (a) 1,154,197 1,118,865
6.91%, 7/15/32, IO (a)(h) 7,280,791 549,104
7.00%, 6/1/26 470,787 514,063
7.00%, 1/1/32 97,650 107,061
------------
64,481,238
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (5.8%)
0.43%, 3/16/46, IO (a)(h) 12,738,806 355,490
0.51%, 4/16/46, IO (a)(h) 59,406,200 1,725,007
0.88%, 6/17/45, IO (a)(h) 11,708,493 428,188
0.96%, 2/16/48, IO (a)(h) 52,663,599 2,232,921
0.99%, 2/16/48, IO (a)(h) 14,618,896 702,857
1.04%, 6/16/49, IO (a)(h) 65,470,919 3,364,865
4.82%, 10/16/29 (a) 2,660,000 2,792,318
5.03%, 11/16/33 (a) 5,640,000 5,922,399
5.30%, 7/16/28 (a) 3,000,000 3,194,535
5.32%, 8/16/30 (a) 2,560,000 2,720,134
9.50%, 12/15/09 3,755 3,772
------------
23,442,486
------------
TOTAL U.S. GOVERNMENT AGENCIES 170,866,852
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
U.S. TREASURY OBLIGATIONS (1.3%)
U.S. TREASURY STRIPS (1.3%)
6.12%, 2/15/18 ** $ 2,700,000 $ 1,951,655
8.21%, 11/15/27 ** (e) 7,400,000 3,253,151
------------
5,204,806
------------
TOTAL U.S. TREASURY OBLIGATIONS 5,204,806
------------
SHARES
-------------
PREFERRED STOCKS (1.2%)
COMMERCIAL BANKS NON-U.S. (0.6%)
Barclays Bank PLC, Series 5, 8.13% 106,000 2,427,400
------------
SOVEREIGN AGENCY (0.1%)
Fannie Mae, 8.25% (a) 160,000 297,600
Freddie Mac, 8.38% (a) 161,000 210,910
------------
508,510
------------
SUPER-REGIONAL BANKS-U.S. (0.5%)
Wells Fargo Capital XII, 7.88% 80,000 1,991,200
------------
TOTAL PREFERRED STOCKS 4,927,110
------------
PRINCIPAL
AMOUNT
-------------
DEMAND NOTES (0.2%)
ELECTRIC-INTEGRATED (0.2%)
Alabama Power Capital Trust V,
5.50%, 10/1/42 (a)(g) $ 874,000 799,546
------------
TOTAL DEMAND NOTES 799,546
------------
SHARES
-------------
INVESTMENTS IN AFFILIATES (2.5%)
Fifth Third Institutional Money
Market Fund (c) 10,075,825 10,075,825
------------
TOTAL INVESTMENTS IN AFFILIATES 10,075,825
------------
TOTAL INVESTMENTS (COST $464,821,851) - 100.5% 407,855,216
LIABILITIES IN EXCESS OF OTHER ASSETS -(0.5)% (1,935,539)
------------
NET ASSETS - 100.0% $405,919,677
============
Continued
101
TOTAL RETURN BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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, 2009.
(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, 2009 using procedures
approved by the Board of Trustees.
(e) All or part of this security has been designated as collateral for futures
contracts, and/or delayed delivery security/ies.
(f) Perpetual Maturity. Callable any time after first call date. Maturity date
is next call date.
(g) Maturity date is next rate reset date.
(h) Illiquid Securities.
The following abbreviations are used in the Schedule of Investments:
ABS - Asset-Backed Security
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.
SHORT TERM BOND
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
ASSET-BACKED SECURITIES (10.8%)
AUTOMOBILES SEQUENTIAL (4.9%)
Bay View Auto Trust, Series 2005-LJ2,
Class A4, 4.55%, 2/25/14 $ 356,782 $ 358,998
BMW Vehicle Lease Trust, Series
2009-1, Class A2, 2.04%, 4/15/11 750,000 752,608
Capital One Auto Finance Trust,
Series 2006-C, Class A3A, 5.07%,
7/15/11 180,474 180,485
Ford Credit Auto Owner Trust, Series
2009-B, Class A2, 2.10%, 11/15/11 1,000,000 1,005,402
Honda Auto Receivables Owner Trust,
Series 2009-3, Class A3, 2.31%,
5/15/13 1,030,000 1,027,888
Hyundai Auto Receivables Trust,
Series 2005-A, Class A4, 4.18%,
2/15/12 1,460,679 1,462,382
Nissan Auto Lease Trust, Series
2006-A, Class A4, 5.10%, 7/16/12 (e) 2,230,167 2,238,014
USAA Auto Owner Trust, Series 2006-2,
Class A4, 5.37%, 2/15/12 1,092,398 1,120,878
Volkswagen Auto Lease Trust, Series
2009-A, Class A2, 2.87%, 7/15/11 1,100,000 1,111,105
World Omni Auto Receivables Trust,
Series 2009-A, Class A2, 2.88%,
10/17/11 2,000,000 2,018,154
------------
11,275,914
------------
CREDIT CARD BULLET (4.4%)
Chase Issuance Trust, Series
2005-A10, Class A10, 4.65%,
12/17/12 (e) 3,000,000 3,102,902
Discover Card Master Trust, Series
2008-A3, Class A3, 5.10%, 10/15/13 2,100,000 2,176,397
GE Capital Credit Card Master Note
Trust, Series 2005-3, Class A, 4.13%,
6/15/13 2,000,000 2,023,558
Nordstrom Private Label Credit Card
Master Note Trust, Series 2007-1A,
Class A, 4.92%, 5/15/13 (b)(e) 3,000,000 3,024,633
------------
10,327,490
------------
HOME EQUITY OTHER (0.2%)
GMAC Mortgage Corp. Loan Trust,
Series 2004-HE2, Class A3, 4.24%,
10/25/33 (a)(e) 191,022 186,364
GMAC Mortgage Corp. Loan Trust,
Series 2005-HE2, Class A3, 4.62%,
11/25/35 (a) 228,323 218,498
------------
404,862
------------
HOME EQUITY SEQUENTIAL (1.0%)
GMAC Mortgage Corp. Loan Trust,
Series 2006-HE2, Class A2, 6.18%,
5/25/36 (a)(e) 3,000,000 2,295,399
------------
Continued
102
SHORT TERM BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
ASSET-BACKED SECURITIES, CONTINUED
OTHER ABS (0.3%)
SVO VOI Mortgage Corp., Series
2005-AA, Class A, 5.25%,
2/20/21 (b)(f) $ 799,427 $ 730,298
------------
TOTAL ASSET-BACKED SECURITIES 25,033,963
------------
CORPORATE BONDS (22.3%)
CABLE TV (0.5%)
Comcast Cable Communications LLC,
6.75%, 1/30/11 1,000,000 1,064,963
------------
CELLULAR TELECOM (0.6%)
New Cingular Wireless Services, Inc.,
7.88%, 3/1/11 1,250,000 1,354,354
------------
COMMERCIAL BANKS (0.9%)
GMAC, Inc., 2.20%, 12/19/12 2,000,000 2,005,940
------------
COMMERCIAL BANKS-SOUTHERN U.S. (0.7%)
BB&T Corp., 3.85%, 7/27/12 1,500,000 1,511,283
------------
COMMERCIAL BANKS-WESTERN U.S. (0.9%)
American Express Bank FSB, 3.15%,
12/9/11 2,000,000 2,067,680
------------
DIVERSIFIED FINANCIAL SERVICES (0.6%)
IBM International Group Capital LLC,
5.05%, 10/22/12 1,250,000 1,338,876
------------
ELECTRIC-INTEGRATED (2.1%)
Duke Energy Carolinas LLC, Series D,
7.38%, 3/1/10 1,250,000 1,293,656
Florida Power Corp., 4.50%, 6/1/10 2,500,000 2,568,743
Pepco Holdings, Inc., 4.00%, 5/15/10 1,000,000 1,005,069
------------
4,867,468
------------
FIDUCIARY BANKS (0.3%)
Bank of New York Mellon Corp. (The),
4.95%, 1/14/11 750,000 777,463
------------
FINANCE-COMMERCIAL (1.0%)
General Electric Capital Corp.,
0.95%, 8/15/11 (a) 2,500,000 2,397,972
------------
FINANCE-INVESTMENT BANKER/BROKER (4.1%)
Bear Stearns Cos. LLC (The), 5.35%,
2/1/12 2,000,000 2,111,254
Citigroup, Inc., 6.00%, 2/21/12 1,000,000 1,012,741
Credit Suisse USA, Inc., 6.13%,
11/15/11 1,500,000 1,611,938
Goldman Sachs Group, Inc. (The),
3.25%, 6/15/12 1,500,000 1,556,540
Goldman Sachs Group, Inc. (The),
6.60%, 1/15/12 1,500,000 1,628,788
Morgan Stanley, 6.75%, 4/15/11 1,500,000 1,586,607
------------
9,507,868
------------
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
CORPORATE BONDS, CONTINUED
FINANCE-OTHER SERVICES (1.1%)
National Rural Utilities Cooperative
Finance Corp., 4.38%, 10/1/10 $ 2,500,000 $ 2,566,592
------------
FOOD-RETAIL (0.5%)
Kroger Co. (The), 6.80%, 4/1/11 1,000,000 1,067,463
------------
MEDICAL INSTRUMENTS (0.9%)
Medtronic, Inc., Series B, 4.38%,
9/15/10 2,000,000 2,063,948
------------
MEDICAL-DRUGS (0.6%)
Pfizer, Inc., 4.45%, 3/15/12 1,250,000 1,323,368
------------
NETWORKING PRODUCTS (1.1%)
Cisco Systems, Inc., 5.25%, 2/22/11 2,500,000 2,646,130
------------
OIL COMPANY-INTEGRATED (0.5%)
Chevron Corp., 3.45%, 3/3/12 1,250,000 1,295,291
------------
REINSURANCE (0.9%)
Berkshire Hathaway Finance Corp.,
4.75%, 5/15/12 2,000,000 2,126,974
------------
RETAIL-DISCOUNT (1.0%)
Wal-Mart Stores, Inc., 4.13%, 2/15/11 2,250,000 2,341,714
------------
SUPER-REGIONAL BANKS-U.S. (3.6%)
Bank of America Corp., 4.38%, 12/1/10 1,000,000 1,019,436
PNC Funding Corp., 1.88%, 6/22/11 2,000,000 2,016,916
US Bancorp, 1.41%, 5/6/10 (a) 2,750,000 2,758,300
Wells Fargo & Co., 5.30%, 8/26/11 2,500,000 2,629,450
------------
8,424,102
------------
TRANSPORT-RAIL (0.4%)
Union Pacific Corp., 5.45%, 1/31/13 1,000,000 1,047,870
------------
TOTAL CORPORATE BONDS 51,797,319
------------
FOREIGN BONDS (2.1%)
DIVERSIFIED MANUFACTURING OPERATIONS (0.6%)
Tyco International Finance SA, 6.38%,
10/15/11 1,300,000 1,390,462
------------
FINANCE-OTHER SERVICES (0.6%)
BP Capital Markets PLC, 3.13%,
3/10/12 1,250,000 1,285,017
Pemex Finance, Ltd., Series 1999-2,
Class A1, MBIA, 9.69%,
8/15/09 40,500 40,557
------------
1,325,574
------------
OIL COMPANY-INTEGRATED (0.5%)
Conoco Funding Co., 6.35%, 10/15/11 1,000,000 1,096,092
------------
Continued
103
SHORT TERM BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------- ------------
FOREIGN BONDS, CONTINUED
SOVEREIGN (0.4%)
Brazil, Federal Republic, Series F,
10.00%, 1/1/14 BRL 2,100,000 $ 1,036,452
------------
TOTAL FOREIGN BONDS 4,848,580
------------
MORTGAGE-BACKED SECURITIES (18.2%)
CMBS OTHER (4.3%)
Banc of America Commercial Mortgage,
Inc., Series 2004-4, Class A3, 4.13%,
7/10/42 (e) $ 1,637,634 1,636,968
CS First Boston Mortgage Securities
Corp., Series 2004-C3, Class A3,
4.30%, 7/15/36 (e) 1,034,487 1,032,998
GE Capital Commercial Mortgage Corp.,
Series 2005-C1, Class A2, 4.35%,
6/10/48 2,738,499 2,732,210
Greenwich Capital Commercial Funding
Corp., Series 2005-GG3, Class A2,
4.31%, 8/10/42 (e) 2,810,120 2,804,767
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A3, 4.60%,
8/10/38 1,691,623 1,689,638
------------
9,896,581
------------
WL COLLATERAL CMO OTHER (9.4%)
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2004-1, Class 13A3,
4.69%, 4/25/34 (a) 2,015,377 1,833,042
Bear Stearns Adjustable Rate Mortgage
Trust, Series 2005-4, Class 2A2,
4.57%, 8/25/35 (a)(e) 3,000,000 2,856,127
Bear Stearns Asset Backed Securities
Trust, Series 2003-AC7, Class A2,
5.25%, 1/25/34 978,053 786,649
Countrywide Home Loan Mortgage Pass
Through Trust, Series 2004-HYB5,
Class 4A1, 4.82%, 4/20/35 (a) 1,466,805 1,093,712
Harborview Mortgage Loan Trust,
Series 2004-5, Class 2A6, 3.69%,
6/19/34 (a)(e) 5,730,000 4,137,035
Homebanc Mortgage Trust, Series
2004-2, Class A2, 0.74%, 12/25/34 (a) 946,625 456,083
Homebanc Mortgage Trust, Series
2006-1, Class 1A1, 3.87%, 4/25/37 (a) 1,456,045 910,008
Indymac Index Mortgage Loan Trust,
Series 2006-AR29, Class A2, 0.37%,
11/25/36 (a) 499,257 460,341
JP Morgan Alternative Loan Trust,
Series 2006-S2, Class A2, 5.81%,
5/25/36 1,366,216 1,134,203
JP Morgan Mortgage Trust, Series
2005-A1, Class 3A3, 4.90%,
2/25/35 (a) 1,688,737 1,560,490
JP Morgan Mortgage Trust, Series
2005-A2, Class 5A1, 4.33%,
4/25/35 (a) 1,782,636 1,612,532
Continued
PRINCIPAL
AMOUNT VALUE
------------- ------------
MORTGAGE-BACKED SECURITIES, CONTINUED
WL COLLATERAL CMO OTHER, CONTINUED
JP Morgan Mortgage Trust, Series
2005-A3, Class 7CA1, 5.11%,
6/25/35 (a)(e) $ 2,610,715 $ 2,066,274
Merrill Lynch Mortgage Investors,
Inc., Series 2003-A1, Class 2A,
3.22%, 12/25/32 (a) 69,067 61,431
Provident Funding Mortgage Loan
Trust, Series 2005-2, Class 2A1A,
4.70%, 10/25/35 (a) 1,691,556 1,534,319
Residential Funding Mortgage
Securities I, Series 2007-SA1, Class
1A1, 5.58%, 2/25/37 (a)(e) 2,764,872 1,313,296
------------
21,815,542
------------
WL COLLATERAL CMO SEQUENTIAL (4.2%)
Chase Mortgage Finance Corp., Series
2005-A1, Class 2A2, 5.24%,
12/25/35 (a) 1,649,512 1,498,575
JP Morgan Alternative Loan Trust,
Series 2006-S3, Class A2A, 5.87%,
8/25/36 (e) 2,663,525 2,371,703
JP Morgan Mortgage Trust, Series
2006-A3, Class 2A1, 5.60%,
5/25/36 (a) 1,838,136 1,617,780
JP Morgan Mortgage Trust, Series
2006-A4, Class 2A2, 5.81%,
6/25/36 (a) 1,792,859 1,449,436
JP Morgan Mortgage Trust, Series
2007-A2, Class 4A1M, 5.78%,
4/25/37 (a) 1,857,287 1,409,488
RAAC Series, Series 2005-SP1, Class
2A2, 5.25%, 9/25/34 1,553,964 1,487,686
------------
9,834,668
------------
WL COLLATERAL PAC (0.3%)
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A1, 4.25%,
3/25/34 739,114 693,416
------------
TOTAL MORTGAGE-BACKED SECURITIES 42,240,207
------------
MUNICIPAL BONDS (0.1%)
OHIO (0.1%)
State of Ohio, Economic Enterprise,
Series 3, 4.05%, 3/1/11 (b) 275,000 276,928
------------
TOTAL MUNICIPAL BONDS 276,928
------------
U.S. GOVERNMENT AGENCIES (41.0%)
FANNIE MAE (6.4%)
1.38%, 4/28/11 4,000,000 4,018,852
1.75%, 3/23/11 5,000,000 5,054,025
4.75%, 4/1/33 (a) 1,196,850 1,240,312
4.95%, 4/1/35 (a) 1,302,834 1,347,337
5.00%, 2/25/25 (e) 1,514,625 1,539,644
5.22%, 9/1/34 (a) 1,567,036 1,641,062
------------
14,841,232
------------
Continued
104
SHORT TERM BOND
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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 $ 2,141,804 $ 2,242,732
------------
FEDERAL FARM CREDIT BANK (5.7%)
2.13%, 6/18/12 3,000,000 3,017,754
2.25%, 4/24/12 2,000,000 2,026,752
2.63%, 4/21/11 (e) 4,000,000 4,106,416
3.50%, 10/3/11 4,000,000 4,179,592
------------
13,330,514
------------
FEDERAL HOME LOAN BANK (10.0%)
1.63%, 7/27/11 4,000,000 4,030,712
1.75%, 8/22/12 4,000,000 3,975,420
3.63%, 9/16/11 5,000,000 5,240,120
4.75%, 10/25/10 2,116,836 2,175,049
4.88%, 11/18/11 3,000,000 3,233,268
5.13%, 9/10/10 4,245,000 4,462,548
------------
23,117,117
------------
FREDDIE MAC (12.0%)
1.63%, 4/26/11 4,000,000 4,035,476
1.75%, 6/15/12 5,000,000 4,989,515
2.00%, 4/27/12 3,000,000 3,004,053
2.13%, 3/23/12 3,000,000 3,033,867
3.71%, 3/1/34 (a) 1,192,690 1,208,063
4.25%, 12/15/19 2,579,755 2,668,125
4.50%, 7/15/28 (e) 2,038,932 2,079,569
4.51%, 7/1/35 (a)(e) 2,404,670 2,468,643
5.00%, 9/15/25 (e) 1,792,690 1,807,748
5.70%, 4/1/37 (a) 2,496,142 2,621,141
------------
27,916,200
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (5.9%)
2.87%, 2/16/20 (e) 2,744,728 2,778,787
3.27%, 1/16/23 812,832 816,403
3.72%, 12/16/26 (e) 2,674,542 2,723,102
3.95%, 11/16/30 (e) 3,111,067 3,195,957
4.00%, 5/16/27 1,752,445 1,802,152
4.09%, 8/16/30 2,050,575 2,107,905
5.99%, 2/16/24 (a) 261,887 265,374
------------
13,689,680
------------
TOTAL U.S. GOVERNMENT AGENCIES 95,137,475
------------
U.S. TREASURY OBLIGATIONS (1.2%)
U.S. TREASURY NOTES (1.2%)
0.88%, 4/15/10(d) (e) 2,821,875 2,828,049
------------
TOTAL U.S. TREASURY OBLIGATIONS 2,828,049
------------
Continued
SHARES VALUE
------------- ------------
INVESTMENTS IN AFFILIATES (3.4%)
Fifth Third Institutional Money
Market Fund (c) 7,961,361 $ 7,961,361
------------
TOTAL INVESTMENTS IN AFFILIATES 7,961,361
------------
TOTAL INVESTMENTS (COST $235,453,778) - 99.1% 230,123,882
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.9% 2,015,889
------------
NET ASSETS - 100.0% $232,139,771
============
NOTES TO SCHEDULE OF INVESTMENTS
(a) Variable rate security. Rate presented represents rate in effect at July
31, 2009.
(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) Treasury Inflation Protected Securities. A U.S. Treasury Note or Bond that
offers protection from inflation by paying a fixed rate of interest on
principal amount that is adjusted for inflation based on the Consumer
Price Index.
(e) All or part of this security has been designated as collateral for futures
contracts.
(f) Illiquid Securities.
The following abbreviations are used in the Schedule of Investments:
ABS - Asset-Backed Security
BRL - Brazilian Real
CMBS - Commercial Mortgage-Backed Security
CMO - Collateralized Mortgage Obligation
MBIA - Municipal Bond Investors Assurance
PAC - Planned Amortization Class
WL - Whole Loan
See notes to schedules of investments
and notes to financial statements.
105
FIFTH THIRD FUNDS
NOTES TO SCHEDULES OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
Cost and appreciation (depreciation) of investments for federal income tax
purposes at January 31, 2009 is as follows:
COST OF NET
INVESTMENTS GROSS GROSS UNREALIZED
FOR FEDERAL UNREALIZED UNREALIZED APPRECIATION/
TAX PURPOSES APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ ------------ -------------- --------------
Small Cap Growth $ 50,586,505 $ 7,100,042 $ (6,617,210) $ 482,832
Mid Cap Growth 105,920,917 12,642,265 (22,093,171) (9,450,906)
Quality Growth 296,967,443 36,363,479 (27,219,485) 9,143,994
Dividend Growth 8,253,802 1,182,433 (328,405) 854,028
Micro Cap Value 29,875,763 5,467,923 (7,433,523) (1,965,600)
Small Cap Value 70,497,852 7,643,614 (10,436,234) (2,792,620)
All Cap Value 153,840,329 20,206,969 (32,347,343) (12,140,374)
Disciplined Large Cap Value 329,200,541 40,277,775 (49,628,935) (9,351,160)
Structured Large Cap Plus 77,897,263 15,677,985 (15,017,549) 660,436
Equity Index 161,079,498 132,642,589 (27,059,383) 105,583,206
International Equity 240,777,009 30,008,477 (25,411,110) 4,597,367
Strategic Income 103,922,465 3,544,484 (25,502,278) (21,957,794)
LifeModel Aggressive(SM) 156,138,425 2,693,239 (45,982,766) (43,289,527)
LifeModel Moderately Aggressive(SM) 263,012,160 3,520,210 (59,929,995) (56,409,785)
LifeModel Moderate(SM) 410,159,841 3,830,145 (83,962,048) (80,131,903)
LifeModel Moderately Conservative(SM) 74,685,179 787,401 (13,390,544) (12,603,143)
LifeModel Conservative(SM) 51,723,685 269,578 (8,388,971) (8,119,393)
High Yield Bond 53,455,800 1,482,823 (4,404,545) (2,921,722)
Total Return Bond 464,971,349 11,507,339 (68,623,472) (57,116,133)
Short Term Bond 235,483,822 3,291,429 (8,651,369) (5,359,940)
Open futures contracts as of July 31, 2009:
UNREALIZED
NUMBER OF NOTIONAL APPRECIATION/ MARKET
CONTRACTS TYPE DESCRIPTION AMOUNT (DEPRECIATION) VALUE
--------- ---- ----------------------------------- ------------ -------------- -----------
Structured Large Cap Plus 14 Long S+P 500 Index Futures, 9/17/09 $ 3,217,779 $ 227,621 $ 3,445,400
========= ============ ============== ===========
Equity Index 27 Long S+P 500 Index Futures, 9/17/09 6,216,406 428,294 6,644,700
========= ============ ============== ===========
International Equity 5 Long ASX SPI 200 Index Futures, 9/17/09 412,546 27,269 439,815
4 Long Australian Dollar Futures, 9/14/09 323,136 9,704 332,840
12 Long British Pound Futures, 9/14/09 1,229,557 21,968 1,251,525
DJ EURO STOXX 50 Index
52 Long Futures, 9/18/09 1,787,082 166,604 1,953,686
9 Long Euro Currency Futures, 9/14/09 1,570,362 33,213 1,603,575
18 Long FTSE 100 Index Futures, 9/18/09 1,290,232 85,684 1,375,916
8 Long Japanese Yen Futures, 9/14/09 1,021,509 33,791 1,055,300
11 Long TOPIX Index Futures, 9/11/09 1,081,511 29,242 1,110,753
--------- ------------ -------------- -----------
119 8,715,935 407,475 9,123,410
========= ============ ============== ===========
Strategic Income 220 Long Eurodollar Futures - 90 Day,
9/13/10 53,790,649 235,851 54,026,500
20 Short U.S. Treasury 10-Year Note, 9/21/09 (2,319,636) (25,989) (2,345,625)
--------- ------------ -------------- -----------
240 51,471,013 209,862 51,680,875
========= ============ ============== ===========
Total Return Bond 70 Long U.S. Treasury 5-Year Note,
9/30/09 8,051,819 24,978 8,076,797
120 Long U.S. Treasury 10-Year Note, 9/21/09 13,917,494 156,256 14,073,750
50 Long U.S. Treasury 30-Year Note, 9/21/09 5,765,362 184,638 5,950,000
--------- ------------ -------------- -----------
240 27,734,675 365,872 28,100,547
========= ============ ============== ===========
Short Term Bond 75 Long U.S. Treasury 2-Year Note, 9/30/09 16,251,754 (8,394) 16,243,360
========= ============ ============== ===========
See notes to financial statements.
106
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107
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2009
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY
GROWTH GROWTH GROWTH
------------- ------------- -------------
ASSETS:
Investments, at cost $ 46,534,985 $ 101,523,554 $ 290,630,017
Net unrealized appreciation/(depreciation) 1,081,279 (5,972,161) 9,939,322
------------- ------------- -------------
Investments, at value 47,616,264 95,551,393 300,569,339
Investment in affiliates, at value (cost $3,453,073, $918,618,
$5,542,098,$188,259, $1,698,188, $2,991,492, $3,665,349, $6,440,971,
$2,982,162,and $6,607,775; respectively) 3,453,073 918,618 5,542,098
------------- ------------- -------------
Total Investments 51,069,337 96,470,011 306,111,437
Cash collateral for futures -- -- --
Interest, dividends and other receivables 4,864 48,470 164,367
Receivable for investments sold 367,465 -- 8,183,543
Receivable for Fund shares sold 16,592 16,159 90,973
Receivable for variation margin on futures contracts -- -- --
Prepaid expenses and other assets 13,818 23,463 26,889
------------- ------------- -------------
Total Assets 51,472,076 96,558,103 314,577,209
------------- ------------- -------------
LIABILITIES:
Securities sold short at value (Proceeds $-, $-, $-, $-$-, $-, $-, $-,
$18,942,885, and $-; respectively) -- -- --
Payable for investments purchased 710,605 393,090 7,648,058
Payable for Fund shares redeemed 15,852 88,941 521,574
Accrued expenses and other payables:
Payable to Advisor and affiliates 33,919 68,575 242,300
Distribution and administrative servicing fee 1,977 4,243 18,904
Payable for dividends on securities sold short -- -- --
Other 23,283 29,791 61,981
------------- ------------- -------------
Total Liabilities 785,636 584,640 8,492,817
------------- ------------- -------------
NET ASSETS:
Paid-in Capital 65,807,410 152,915,902 341,263,429
Accumulated net investment income/(loss) (4,051) -- 773,474
Accumulated net realized loss from investment transactions, futures and
foreign currency (16,198,198) (50,970,278) (45,891,833)
Net unrealized appreciation/(depreciation) on investments, futures and
foreign currency 1,081,279 (5,972,161) 9,939,322
------------- ------------- -------------
Net Assets $ 50,686,440 $ 95,973,463 $ 306,084,392
============= ============= =============
Net Assets:
Institutional Shares $ 43,272,503 $ 81,725,706 $ 237,049,659
Class A Shares 6,630,124 11,988,922 61,218,824
Class B Shares 549,337 1,883,076 6,185,143
Class C Shares 234,476 375,759 1,630,766
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
------------- ------------- -------------
Total $ 50,686,440 $ 95,973,463 $ 306,084,392
============= ============= =============
Shares of beneficial interest outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 7,112,641 11,134,560 19,055,987
Class A Shares 1,171,256 1,721,391 5,065,162
Class B Shares 106,601 301,963 548,736
Class C Shares 45,420 64,532 149,537
Select Shares NA NA NA
Preferred Shares NA NA NA
Trust Shares NA NA NA
------------- ------------- -------------
Total 8,435,918 13,222,446 24,819,422
============= ============= =============
Net Asset Value
Institutional Shares $ 6.08 $ 7.34 $ 12.44
============= ============= =============
Class A Shares-redemption price per share $ 5.66 $ 6.96 $ 12.09
============= ============= =============
Class B Shares-offering price per share* $ 5.15 $ 6.24 $ 11.27
============= ============= =============
Class C Shares-offering price per share* $ 5.16 $ 5.82 $ 10.91
============= ============= =============
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 asset value
adjusted to the nearest cent) per share Class A Shares $ 5.96 $ 7.33 $ 12.73
============= ============= =============
- ----------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
108
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2009
- --------------------------------------------------------------------------------
DIVIDEND MICRO CAP SMALL CAP ALL CAP
GROWTH VALUE VALUE VALUE
------------- ------------- ------------- -------------
ASSETS:
Investments, at cost $ 7,933,775 $ 26,409,172 $ 66,981,591 $ 145,708,273
Net unrealized appreciation/(depreciation) 985,796 (197,197) (2,267,851) (7,673,667)
------------- ------------- ------------- -------------
Investments, at value 8,919,571 26,211,975 64,713,740 138,034,606
Investment in affiliates, at value (cost $3,453,073,
$918,618, $5,542,098,$188,259, $1,698,188, $2,991,492,
$3,665,349, $6,440,971, $2,982,162,and $6,607,775;
respectively) 188,259 1,698,188 2,991,492 3,665,349
------------- ------------- ------------- -------------
Total Investments 9,107,830 27,910,163 67,705,232 141,699,955
Cash collateral for futures -- -- -- --
Interest, dividends and other receivables 7,762 2,492 7,605 119,228
Receivable for investments sold 224,298 384,011 232,920 --
Receivable for Fund shares sold 60 101,338 100,196 164,746
Receivable for variation margin on futures contracts -- -- -- --
Prepaid expenses and other assets 17,276 19,598 11,523 17,470
------------- ------------- ------------- -------------
Total Assets 9,357,226 28,417,602 68,057,476 142,001,399
------------- ------------- ------------- -------------
LIABILITIES:
Securities sold short at value (Proceeds $-, $-, $-,
$-$-, $-, $-, $-, $18,942,885, and $-; respectively) -- -- -- --
Payable for investments purchased 3 3,114 235,816 --
Payable for Fund shares redeemed 10,727 88,942 266,057 390,521
Accrued expenses and other payables:
Payable to Advisor and affiliates 900 23,106 55,412 113,246
Distribution and administrative servicing fee 882 4,132 1,033 17,946
Payable for dividends on securities sold short -- -- -- --
Other 20,780 24,681 17,938 37,998
------------- ------------- ------------- -------------
Total Liabilities 33,292 143,975 576,256 559,711
------------- ------------- ------------- -------------
NET ASSETS:
Paid-in Capital 26,076,984 38,222,553 86,592,106 192,426,679
Accumulated net investment income/(loss) 4,032 51,271 297,789 44,064
Accumulated net realized loss from investment
transactions, futures and foreign currency (17,742,878) (9,803,000) (17,140,824) (43,355,388)
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency 985,796 (197,197) (2,267,851) (7,673,667)
------------- ------------- ------------- -------------
Net Assets $ 9,323,934 $ 28,273,627 $ 67,481,220 $ 141,441,688
============= ============= ============= =============
Net Assets:
Institutional Shares $ 6,976,353 $ 17,393,894 $ 65,235,572 $ 93,858,011
Class A Shares 2,078,216 7,496,830 1,274,591 33,491,478
Class B Shares 113,349 1,937,226 572,099 8,990,498
Class C Shares 156,016 1,445,677 398,958 5,101,701
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
------------- ------------- ------------- -------------
Total $ 9,323,934 $ 28,273,627 $ 67,481,220 $ 141,441,688
============= ============= ============= =============
Shares of beneficial interest outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 379,931 5,369,673 4,839,517 7,494,508
Class A Shares 115,271 2,487,696 95,596 2,722,966
Class B Shares 6,508 713,944 44,794 770,766
Class C Shares 9,236 532,179 31,350 438,494
Select Shares NA NA NA NA
Preferred Shares NA NA NA NA
Trust Shares NA NA NA NA
------------- ------------- ------------- -------------
Total 510,946 9,103,492 5,011,257 11,426,734
============= ============= ============= =============
Net Asset Value
Institutional Shares $ 18.36 $ 3.24 $ 13.48 $ 12.52
============= ============= ============= =============
Class A Shares-redemption price per share $ 18.03 $ 3.01 $ 13.33 $ 12.30
============= ============= ============= =============
Class B Shares-offering price per share* $ 17.42 $ 2.71 $ 12.77 $ 11.66
============= ============= ============= =============
Class C Shares-offering price per share* $ 16.89 $ 2.72 $ 12.73 $ 11.63
============= ============= ============= =============
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 asset value adjusted to the nearest cent) per
share Class A Shares $ 18.98 $ 3.17 $ 14.03 $ 12.95
============= ============= ============= =============
DISCIPLINED STRUCTURED
LARGE CAP LARGE CAP EQUITY
VALUE PLUS INDEX
-------------- ------------- -------------
ASSETS:
Investments, at cost $ 313,601,641 $ 93,815,835 $ 149,997,486
Net unrealized appreciation/(depreciation) (193,231) 4,470,088 110,185,487
-------------- ------------- -------------
Investments, at value 313,408,410 98,285,923 260,182,973
Investment in affiliates, at value (cost $3,453,073, $918,618,
$5,542,098,$188,259, $1,698,188, $2,991,492, $3,665,349, $6,440,971,
$2,982,162,and $6,607,775; respectively) 6,440,971 2,982,162 6,479,731
-------------- ------------- -------------
Total Investments 319,849,381 101,268,085 266,662,704
Cash collateral for futures -- 315,000 --
Interest, dividends and other receivables 439,004 105,757 331,409
Receivable for investments sold 8,013,999 -- --
Receivable for Fund shares sold 90,851 71 319,833
Receivable for variation margin on futures contracts -- 7,700 15,296
Prepaid expenses and other assets 25,219 16,373 19,717
-------------- ------------- -------------
Total Assets 328,418,454 101,712,986 267,348,959
-------------- ------------- -------------
LIABILITIES:
Securities sold short at value (Proceeds $-, $-, $-, $-$-, $-, $-, $-,
$18,942,885, and $-; respectively) -- 22,710,386 --
Payable for investments purchased 5,501,903 928 2,061
Payable for Fund shares redeemed 460,637 90,336 488,873
Accrued expenses and other payables:
Payable to Advisor and affiliates 238,658 34,907 23,761
Distribution and administrative servicing fee 42,969 2,162 22,590
Payable for dividends on securities sold short -- 34,473 --
Other 36,608 44,542 36,484
-------------- ------------- -------------
Total Liabilities 6,280,775 22,917,734 573,769
-------------- ------------- -------------
NET ASSETS:
Paid-in Capital 436,757,214 139,293,606 164,168,561
Accumulated net investment income/(loss) 115,174 193,580 265,527
Accumulated net realized loss from investment transactions, futures and
foreign currency (114,541,478) (61,621,313) (8,144,635)
Net unrealized appreciation/(depreciation) on investments, futures and
foreign currency (193,231) 929,379 110,485,737
-------------- ------------- -------------
Net Assets $ 322,137,679 $ 78,795,252 $ 266,775,190
============== ============= =============
Net Assets:
Institutional Shares $ 308,345,145 $ 72,778,362 $ 141,565,772
Class A Shares 11,023,375 5,647,666 41,527,394
Class B Shares 1,991,345 347,455 1,989,228
Class C Shares 777,814 21,769 1,451,808
Select Shares NA NA 9,731,484
Preferred Shares NA NA 43,098,480
Trust Shares NA NA 27,411,024
-------------- ------------- -------------
Total $ 322,137,679 $ 78,795,252 $ 266,775,190
============== ============= =============
Shares of beneficial interest outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 36,059,323 8,043,017 7,544,289
Class A Shares 1,293,541 631,994 2,221,065
Class B Shares 231,084 39,115 107,045
Class C Shares 92,343 2,444 78,079
Select Shares NA NA 518,780
Preferred Shares NA NA 2,297,959
Trust Shares NA NA 1,461,075
-------------- ------------- -------------
Total 37,676,291 8,716,570 14,228,292
============== ============= =============
Net Asset Value
Institutional Shares $ 8.55 $ 9.05 $ 18.76
============== ============= =============
Class A Shares-redemption price per share $ 8.52 $ 8.94 $ 18.70
============== ============= =============
Class B Shares-offering price per share* $ 8.62 $ 8.88 $ 18.58
============== ============= =============
Class C Shares-offering price per share* $ 8.42 $ 8.91 $ 18.59
============== ============= =============
Select Shares NA NA $ 18.76
============== ============= =============
Preferred Shares NA NA $ 18.76
============== ============= =============
Trust Shares NA NA $ 18.76
============== ============= =============
Maximum Sales Charge
Class A Shares 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 $ 8.97 $ 9.41 $ 19.68
============== ============= =============
See notes to financial statements.
109
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2009
- --------------------------------------------------------------------------------
INTERNATIONAL STRATEGIC LIFEMODEL
EQUITY INCOME AGGRESSIVE(SM)
-------------- ------------- -------------
ASSETS:
Investments, at cost $ 235,267,760 $ 98,983,117 $ --
Net unrealized appreciation/(depreciation) 6,601,385 (21,402,141) --
-------------- ------------- -------------
Investments, at value 241,869,145 77,580,976 --
Investment in affiliates, at value (cost $3,505,231, $4,383,694;
$150,064,843 $257,796,770, $403,461,981, $72,901,186, $50,905,362,
$231,361, $10,075,825, and $7,961,361; respectively) 3,505,231 4,383,694 112,848,898
-------------- ------------- -------------
Total Investments 245,374,376 81,964,670 112,848,898
Cash -- -- --
Cash collateral for futures 522,961 168,050 --
Foreign currency, at value (cost $704,325, $5,930, $-, $-, $-, $-, $-, $-,
$112,534 and $372,477; respectively) 714,036 3,624 --
Interest, dividends and other receivables 294,637 605,651 175+
Receivable for investments sold -- 275,813 1,250,000+
Receivable for Fund shares sold 102,928 307,030 198,903
Receivable for variation margin on futures contracts 48,802 60,625 --
Reclaims receivable 350,739 -- --
Receivable from Advisor and affiliates -- -- 11,062
Prepaid expenses and other assets 25,251 16,029 14,750
-------------- ------------- -------------
Total Assets 247,433,730 83,401,492 114,323,788
-------------- ------------- -------------
LIABILITIES:
Cash overdraft -- -- 63,491
Distributions payable -- 408,151 --
Payable for investments purchased 1,184 549,356 --
Payable for Fund shares redeemed 76,166 223,542 86,255
Accrued expenses and other payables:
Payable to Advisor and affiliates 228,458 51,952 --
Distribution and administrative servicing fee 5,181 10,083 13,164
Other 45,013 24,596 29,716
-------------- ------------- -------------
Total Liabilities 356,002 1,267,680 192,626
-------------- ------------- -------------
NET ASSETS:
Paid-in Capital 388,642,703 111,757,658 155,744,861
Accumulated net investment income/(loss) 7,006,886 1,179,028 38,503
Accumulated net realized loss from investment transactions, swaps, futures
and foreign currency (155,606,248) (9,608,291) (4,436,257)
Net unrealized appreciation/(depreciation) on investments, futures and
foreign currency 7,034,387 (21,194,583) (37,215,945)
-------------- ------------- -------------
Net Assets $ 247,077,728 $ 82,133,812 $ 114,131,162
============== ============= =============
Net Assets:
Institutional Shares $ 233,967,890 $ 59,493,212 $ 76,770,300
Class A Shares 11,754,242 13,405,909 28,126,038
Class B Shares 977,306 766,614 7,893,047
Class C Shares 378,290 8,468,077 1,341,777
-------------- ------------- -------------
Total $ 247,077,728 $ 82,133,812 $ 114,131,162
============== ============= =============
Shares of beneficial interest outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 32,282,755 6,644,063 8,791,411
Class A Shares 1,622,748 1,500,721 3,244,496
Class B Shares 137,873 85,819 942,159
Class C Shares 55,699 956,339 160,267
-------------- ------------- -------------
Total 34,099,075 9,186,942 13,138,333
============== ============= =============
Net Asset Value
Institutional Shares $ 7.25 $ 8.95 $ 8.73
============== ============= =============
Class A Shares-redemption price per share $ 7.24 $ 8.93 $ 8.67
============== ============= =============
Class B Shares-offering price per share* $ 7.09 $ 8.93 $ 8.38
============== ============= =============
Class C Shares-offering price per share* $ 6.79 $ 8.85 $ 8.37
============== ============= =============
Maximum Sales Charge
Class A Shares 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 $ 7.62 $ 9.40 $ 9.13
============== ============= =============
- ----------
* Redemption price per share varies by length of time shares are held.
+ Represents receivable from or payable to affiliates.
See notes to financial statements.
110
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2009
- --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL
MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE(SM) CONSERVATIVE(SM)
--------------- ------------- ---------------- ---------------
ASSETS:
Investments, at cost $ -- $ -- $ -- $ --
Net unrealized appreciation/(depreciation) -- -- -- --
--------------- ------------- ---------------- ---------------
Investments, at value -- -- -- --
Investment in affiliates, at value (cost $3,505,231,
$4,383,694; $150,064,843 $257,796,770, $403,461,981,
$72,901,186, $50,905,362, $231,361, $10,075,825, and
$7,961,361; respectively) 206,602,375 330,027,938 62,082,036 43,604,292
--------------- ------------- ---------------- ---------------
Total Investments 206,602,375 330,027,938 62,082,036 43,604,292
Cash -- -- -- --
Cash collateral for futures -- -- -- --
Foreign currency, at value (cost $704,325, $5,930, $-,
$-, $-, $-, $-, $-, $112,534 and $372,477;
respectively) -- -- -- --
Interest, dividends and other receivables 250+ 761+ 65+ 113+
Receivable for investments sold -- -- -- --
Receivable for Fund shares sold 221,337 229,485 34,612 63,554
Receivable for variation margin on futures contracts -- -- -- --
Reclaims receivable -- -- -- --
Receivable from Advisor and affiliates 20,767 5,078 5,953 5,143
Prepaid expenses and other assets 16,897 18,211 12,588 12,502
--------------- ------------- ---------------- ---------------
Total Assets 206,861,626 330,281,473 62,135,254 43,685,604
--------------- ------------- ---------------- ---------------
LIABILITIES:
Cash overdraft -- -- -- --
Distributions payable -- -- -- --
Payable for investments purchased 182+ 731+ 62+ 108+
Payable for Fund shares redeemed 189,707 265,466 26,441 4,361
Accrued expenses and other payables:
Payable to Advisor and affiliates -- -- -- --
Distribution and administrative servicing fee 38,695 29,118 11,509 7,836
Other 50,902 39,262 19,234 15,813
--------------- ------------- ---------------- ---------------
Total Liabilities 279,486 334,577 57,246 28,118
--------------- ------------- ---------------- ---------------
NET ASSETS:
Paid-in Capital 261,839,591 410,119,310 75,283,082 51,792,047
Accumulated net investment income/(loss) 263,875 814,893 162,773 165,388
Accumulated net realized loss from investment
transactions, swaps, futures and foreign currency (4,326,931) (7,553,264) (2,548,697) (998,879)
Net unrealized appreciation/(depreciation) on
investments, futures and foreign currency (51,194,395) (73,434,043) (10,819,150) (7,301,070)
--------------- ------------- ---------------- ---------------
Net Assets $ 206,582,140 $ 329,946,896 $ 62,078,008 $ 43,657,486
=============== ============= ================ ===============
Net Assets:
Institutional Shares $ 110,521,908 $ 258,159,053 $ 35,581,091 $ 26,856,477
Class A Shares 64,958,769 48,590,391 16,941,538 9,913,516
Class B Shares 27,726,504 20,488,719 8,291,667 5,099,379
Class C Shares 3,374,959 2,708,733 1,263,712 1,788,114
--------------- ------------- ---------------- ---------------
Total $ 206,582,140 $ 329,946,896 $ 62,078,008 $ 43,657,486
=============== ============= ================ ===============
Shares of beneficial interest outstanding (Unlimited
number of shares authorized, no par value):
Institutional Shares 12,094,950 28,640,307 4,262,058 3,067,844
Class A Shares 7,119,997 5,398,388 2,032,818 1,134,866
Class B Shares 3,072,716 2,290,170 998,762 586,336
Class C Shares 373,897 302,484 152,050 205,341
--------------- ------------- ---------------- ---------------
Total 22,661,560 36,631,349 7,445,688 4,994,387
=============== ============= ================ ===============
Net Asset Value
Institutional Shares $ 9.14 $ 9.01 $ 8.35 $ 8.75
=============== ============= ================ ===============
Class A Shares-redemption price per share $ 9.12 $ 9.00 $ 8.33 $ 8.74
=============== ============= ================ ===============
Class B Shares-offering price per share* $ 9.02 $ 8.95 $ 8.30 $ 8.70
=============== ============= ================ ===============
Class C Shares-offering price per share* $ 9.03 $ 8.95 $ 8.31 $ 8.71
=============== ============= ================ ===============
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 $ 9.60 $ 9.47 $ 8.77 $ 9.20
=============== ============= ================ ===============
HIGH YIELD TOTAL RETURN SHORT TERM
BOND BOND BOND
------------- ------------- -------------
ASSETS:
Investments, at cost $ 53,108,704 $ 454,746,026 $ 227,492,417
Net unrealized appreciation/(depreciation) (2,805,987) (56,966,635) (5,329,896)
------------- ------------- -------------
Investments, at value 50,302,717 397,779,391 222,162,521
Investment in affiliates, at value (cost $3,505,231, $4,383,694;
$150,064,843 $257,796,770, $403,461,981, $72,901,186, $50,905,362,
$231,361, $10,075,825, and $7,961,361; respectively) 231,361 10,075,825 7,961,361
------------- ------------- -------------
Total Investments 50,534,078 407,855,216 230,123,882
Cash -- 1 --
Cash collateral for futures -- 446,000 60,000
Foreign currency, at value (cost $704,325, $5,930, $-, $-, $-, $-, $-, $-,
$112,534 and $372,477; respectively) -- 113,701 376,340
Interest, dividends and other receivables 1,158,264 3,160,339 1,509,060
Receivable for investments sold -- 261,036 213,430
Receivable for Fund shares sold 399,079 77,396 149,269
Receivable for variation margin on futures contracts -- 276,484 28,125
Reclaims receivable -- 8,135 --
Receivable from Advisor and affiliates -- -- --
Prepaid expenses and other assets 12,502 27,972 18,637
------------- ------------- -------------
Total Assets 52,103,923 412,226,280 232,478,743
------------- ------------- -------------
LIABILITIES:
Cash overdraft -- -- --
Distributions payable 94 -- --
Payable for investments purchased 380 4,838,234 --
Payable for Fund shares redeemed 36,821 1,210,422 196,985
Accrued expenses and other payables:
Payable to Advisor and affiliates 23,849 215,941 113,619
Distribution and administrative servicing fee 886 5,302 2,134
Other 17,076 36,704 26,234
------------- ------------- -------------
Total Liabilities 79,106 6,306,603 338,972
------------- ------------- -------------
NET ASSETS:
Paid-in Capital 59,835,280 542,948,769 256,788,354
Accumulated net investment income/(loss) 28,425 (188,156) 130,495
Accumulated net realized loss from investment transactions, swaps, futures
and foreign currency (5,032,901) (80,241,340) (19,444,651)
Net unrealized appreciation/(depreciation) on investments, futures and
foreign currency (2,805,987) (56,599,596) (5,334,427)
------------- ------------- -------------
Net Assets $ 52,024,817 $ 405,919,677 $ 232,139,771
============= ============= =============
Net Assets:
Institutional Shares $ 47,394,911 $ 386,491,645 $ 224,930,464
Class A Shares 4,442,525 15,750,776 6,329,941
Class B Shares 74,381 2,932,182 NA
Class C Shares 113,000 745,074 879,366
------------- ------------- -------------
Total $ 52,024,817 $ 405,919,677 $ 232,139,771
============== ============= =============
Shares of beneficial interest outstanding (Unlimited number of shares
authorized, no par value):
Institutional Shares 5,436,646 45,678,303 24,113,216
Class A Shares 511,257 1,862,505 679,059
Class B Shares 8,540 346,365 NA
Class C Shares 12,978 87,973 94,428
------------- ------------- -------------
Total 5,969,421 47,975,146 24,886,703
============= ============= =============
Net Asset Value
Institutional Shares $ 8.72 $ 8.46 $ 9.33
============= ============= =============
Class A Shares-redemption price per share $ 8.69 $ 8.46 $ 9.32
============= ============= =============
Class B Shares-offering price per share* $ 8.71 $ 8.47 NA
============= ============= =============
Class C Shares-offering price per share* $ 8.71 $ 8.47 $ 9.31
============= ============= =============
Maximum Sales Charge
Class A Shares 5.00% 4.75% 4.75%
Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value
adjusted to the nearest cent) per share Class A Shares $ 9.15 $ 8.88 $ 9.78
============= ============= =============
See notes to financial statements.
111
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2009
- --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY
GROWTH GROWTH GROWTH
------------- ------------- -------------
INVESTMENT INCOME:
Interest income $ -- $ -- $ 318,182
Dividend income 218,811 854,340 4,888,952
Dividend income from affiliates 31,266 85,986 108,511
Foreign tax withholding (10,974) (2,028) --
Income from securities lending 29,839 48,402 34,395
Other income -- -- --
------------- ------------- -------------
Total Investment Income 268,942 986,700 5,350,040
------------- ------------- -------------
EXPENSES:
Investment advisory fees 357,230 925,124 2,547,955
Administration fees 88,356 200,192 551,591
Distribution servicing fees - Class A Shares 16,745 30,960 153,355
Distribution servicing fees - Class B Shares 5,607 23,649 84,736
Distribution servicing fees - Class C Shares 1,468 3,016 13,673
Administrative servicing fees - Class C Shares 489 1,005 4,557
Administrative servicing fees - Select Shares NA NA NA
Administrative servicing fees - Preferred Shares NA NA NA
Administrative servicing fees - Trust Shares NA NA NA
Accounting fees 62,774 62,457 95,965
Registration and filing fees 24,370 25,346 26,750
Transfer and dividend disbursing agent fees 34,535 75,238 231,682
Custody fees 5,288 8,635 6,823
Trustees' fees and expenses 2,161 5,047 13,042
Interest expense -- -- --
Dividends on securities sold short -- -- --
Professional fees and other expenses 64,105 41,922 111,469
------------- ------------- -------------
Total expenses 663,128 1,402,591 3,841,598
------------- ------------- -------------
Less: Waiver and/or reimbursement from Advisor and/or affiliates (123,387) (182,536) (209,238)
------------- ------------- -------------
Net Expenses 539,741 1,220,055 3,632,360
------------- ------------- -------------
Net Investment Income/(Loss) (270,799) (233,355) 1,717,680
------------- ------------- -------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES:
Net realized gains/(losses) on investment transactions (15,191,493) (49,912,688) (42,381,346)
Net realized losses on futures transactions -- -- --
Change in unrealized appreciation/(depreciation) on investments and futures (5,469,277) (17,102,132) (65,154,751)
------------- ------------- -------------
Net realized and unrealized losses on investments and futures (20,660,770) (67,014,820) (107,536,097)
------------- ------------- -------------
Change in net assets resulting from operations $ (20,931,569) $ (67,248,175) $(105,818,417)
============= ============= =============
See notes to financial statements.
112
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2009
- --------------------------------------------------------------------------------
DIVIDEND MICRO CAP SMALL CAP ALL CAP
GROWTH VALUE VALUE VALUE
------------- ------------- ------------- -------------
INVESTMENT INCOME:
Interest income $ -- $ -- $ -- $ --
Dividend income 288,734 484,000 1,788,123 4,688,125
Dividend income from affiliates 2,684 19,189 35,945 74,102
Foreign tax withholding (1,790) -- (4,015) --
Income from securities lending 6,155 18,608 41,370 46,657
Other income -- 17 -- 18
------------- ------------- ------------- -------------
Total Investment Income 295,783 521,814 1,861,423 4,808,902
------------- ------------- ------------- -------------
EXPENSES:
Investment advisory fees 95,060 261,562 580,781 1,527,248
Administration fees 20,587 45,287 111,806 264,418
Distribution servicing fees - Class A Shares 5,405 17,406 3,076 82,919
Distribution servicing fees - Class B Shares 1,398 19,509 5,694 96,169
Distribution servicing fees - Class C Shares 1,269 8,858 2,589 40,887
Administrative servicing fees - Class C Shares 423 2,953 863 13,629
Administrative servicing fees - Select Shares NA NA NA NA
Administrative servicing fees - Preferred Shares NA NA NA NA
Administrative servicing fees - Trust Shares NA NA NA NA
Accounting fees 62,233 63,451 62,009 66,080
Registration and filing fees 23,779 28,172 23,232 30,351
Transfer and dividend disbursing agent fees 19,285 47,373 17,597 140,530
Custody fees 15,974 4,525 7,917 9,212
Trustees' fees and expenses 583 978 2,703 6,455
Interest expense -- -- -- --
Dividends on securities sold short -- -- -- --
Professional fees and other expenses 27,173 42,440 31,867 88,085
------------- ------------- ------------- -------------
Total expenses 273,169 542,514 850,134 2,365,983
------------- ------------- ------------- -------------
Less: Waiver and/or reimbursement from Advisor and/or
affiliates (177,934) (140,680) (63,537) (359,069)
------------- ------------- ------------- -------------
Net Expenses 95,235 401,834 786,597 2,006,914
------------- ------------- ------------- -------------
Net Investment Income/(Loss) 200,548 119,980 1,074,826 2,801,988
------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND
FUTURES:
Net realized gains/(losses) on investment transactions (4,137,371) (6,300,682) (15,847,456) (40,793,430)
Net realized losses on futures transactions -- -- -- --
Change in unrealized appreciation/(depreciation) on
investments and futures (278,321) 914,167 (3,419,451) (19,016,994)
------------- ------------- ------------- -------------
Net realized and unrealized losses on investments and
futures (4,415,692) (5,386,515) (19,266,907) (59,810,424)
------------- ------------- ------------- -------------
Change in net assets resulting from operations $ (4,215,144) $ (5,266,535) $ (18,192,081) $ (57,008,436)
============= ============= ============= =============
DISCIPLINED STRUCTURED
LARGE CAP LARGE CAP EQUITY
VALUE PLUS INDEX
------------- ------------- -------------
INVESTMENT INCOME:
Interest income $ -- $ -- $ --
Dividend income 11,769,470 3,021,413 6,627,832
Dividend income from affiliates 125,492 34,235 115,618
Foreign tax withholding -- (786) --
Income from securities lending 42,000 -- 66,318
Other income 215 14 36
------------- ------------- -------------
Total Investment Income 11,937,177 3,054,876 6,809,804
------------- ------------- -------------
EXPENSES:
Investment advisory fees 2,683,558 624,534 766,516
Administration fees 580,943 154,580 442,389
Distribution servicing fees - Class A Shares 28,799 18,347 100,001
Distribution servicing fees - Class B Shares 24,638 4,400 21,107
Distribution servicing fees - Class C Shares 6,863 306 9,691
Administrative servicing fees - Class C Shares 2,288 102 3,230
Administrative servicing fees - Select Shares NA NA 6,958
Administrative servicing fees - Preferred Shares NA NA 63,264
Administrative servicing fees - Trust Shares NA NA 80,479
Accounting fees 98,962 69,790 125,544
Registration and filing fees 24,681 25,190 23,487
Transfer and dividend disbursing agent fees 103,257 36,069 88,349
Custody fees 12,426 13,268 21,713
Trustees' fees and expenses 13,931 7,152 10,885
Interest expense -- 75,424 --
Dividends on securities sold short -- 279,714 --
Professional fees and other expenses 74,101 564,049 108,478
------------- ------------- -------------
Total expenses 3,654,447 1,872,925 1,872,091
------------- ------------- -------------
Less: Waiver and/or reimbursement from Advisor and/or affiliates (302,902) (323,842) (1,101,900)
------------- ------------- -------------
Net Expenses 3,351,545 1,549,083 770,191
------------- ------------- -------------
Net Investment Income/(Loss) 8,585,632 1,505,793 6,039,613
------------- ------------- -------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES:
Net realized gains/(losses) on investment transactions (111,466,740) (46,428,578) 2,026,937
Net realized losses on futures transactions -- (324,340) (1,956,017)
Change in unrealized appreciation/(depreciation) on investments and futures (7,681,588) (6,292,012) (76,773,100)
------------- ------------- -------------
Net realized and unrealized losses on investments and futures (119,148,328) (53,044,930) (76,702,180)
------------- ------------- -------------
Change in net assets resulting from operations $(110,562,696) $ (51,539,137) $ (70,662,567)
============= ============= =============
See notes to financial statements.
113
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2009
- --------------------------------------------------------------------------------
INTERNATIONAL STRATEGIC LIFEMODEL
EQUITY INCOME AGGRESSIVE(SM)
------------- ------------- -------------
INVESTMENT INCOME:
Interest income $ -- $ 2,653,731 $ --
Dividend income 11,272,514 4,180,852 --
Dividend income from affiliates 90,930 67,123 2,598,480
Foreign tax withholding (896,761) (7,555) --
Income from securities lending 189,482 30,239 --
Other income 328 7,808 --
------------- ------------- -------------
Total Investment Income 10,656,493 6,932,198 2,598,480
------------- ------------- -------------
EXPENSES:
Investment advisory fees 2,514,187 842,711 169,940
Administration fees 435,416 146,007 196,155
Distribution servicing fees - Class A Shares 29,534 27,011 73,309
Distribution servicing fees - Class B Shares 11,162 7,278 85,498
Distribution servicing fees - Class C Shares 3,024 55,555 11,256
Administrative servicing fees - Class C Shares 1,008 18,519 3,752
Accounting fees 103,116 67,175 58,851
Registration and filing fees 25,722 27,273 24,944
Transfer and dividend disbursing agent fees 62,188 39,418 95,929
Custody fees 143,567 8,605 2,806
Trustees' fees and expenses 9,886 3,512 8,341
Interest expense 38,203 482 --
Professional fees and other expenses 33,559 45,178 73,764
------------- ------------- -------------
Total expenses 3,410,572 1,288,724 804,545
------------- ------------- -------------
Less: Waiver and/or reimbursement from Advisor and/or affiliates (285,475) (392,738) (538,166)
------------- ------------- -------------
Net Expenses 3,125,097 895,986 266,379
------------- ------------- -------------
Net Investment Income 7,531,396 6,036,212 2,332,101
------------- ------------- -------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, FUTURES AND
FOREIGN CURRENCY:
Net realized gains/(losses) on investment and foreign currency
transactions (147,743,914) (8,574,686) (8,137,540)+
Net realized gains/(losses) on futures transactions and swaps (1,806,080) 2,279,929 --
Realized gain distributions from underlying funds -- -- 7,564,541+
Change in unrealized appreciation/(depreciation) on investments, futures
and foreign currency transactions 23,614,007 (4,038,633) (41,114,152)
------------- ------------- -------------
Net realized and unrealized gains/(losses) on investments, futures, swaps
and foreign currency transactions (125,935,987) (10,333,390) (41,687,151)
------------- ------------- -------------
Change in net assets resulting from operations $(118,404,591) $ (4,297,178) $ (39,355,050)
============= ============= =============
+ Represents realized gains/(losses) from investment transactions with
affiliates.
See notes to financial statements.
114
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2009
- --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL
MODERATELY LIFEMODEL MODERATELY LIFEMODEL
AGGRESSIVE(SM) MODERATE(SM) CONSERVATIVE(SM) CONSERVATIVE(SM)
--------------- ------------- ---------------- ---------------
INVESTMENT INCOME:
Interest income $ -- $ -- $ -- $ --
Dividend income -- -- -- --
Dividend income from affiliates 6,403,786 12,690,221 2,663,578 2,085,717
Foreign tax withholding -- -- -- --
Income from securities lending -- -- -- --
Other income -- -- -- --
--------------- ------------- ---------------- ---------------
Total Investment Income 6,403,786 12,690,221 2,663,578 2,085,717
--------------- ------------- ---------------- ---------------
EXPENSES:
Investment advisory fees 308,023 491,434 95,935 64,356
Administration fees 355,549 567,273 110,738 74,289
Distribution servicing fees - Class A Shares 169,602 129,456 45,697 25,543
Distribution servicing fees - Class B Shares 295,091 226,760 96,387 57,128
Distribution servicing fees - Class C Shares 29,270 22,888 10,787 13,433
Administrative servicing fees - Class C Shares 9,757 7,629 3,596 4,478
Accounting fees 69,976 94,503 58,849 58,684
Registration and filing fees 21,874 24,882 23,735 23,130
Transfer and dividend disbursing agent fees 202,815 129,309 37,500 20,965
Custody fees 4,188 5,165 1,922 469
Trustees' fees and expenses 14,915 23,353 4,645 3,069
Interest expense -- -- -- --
Professional fees and other expenses 129,078 109,614 42,817 32,815
--------------- ------------- ---------------- ---------------
Total expenses 1,610,138 1,832,266 532,608 378,359
--------------- ------------- ---------------- ---------------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (942,139) (1,183,434) (324,975) (243,454)
--------------- ------------- ---------------- ---------------
Net Expenses 667,999 648,832 207,633 134,905
--------------- ------------- ---------------- ---------------
Net Investment Income 5,735,787 12,041,389 2,455,945 1,950,812
--------------- ------------- ---------------- ---------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS, FUTURES AND FOREIGN CURRENCY:
Net realized gains/(losses) on investment and
foreign currency transactions (10,157,710)+ (13,160,528)+ (2,836,243)+ (724,049)+
Net realized gains/(losses) on futures
transactions and swaps -- -- -- --
Realized gain distributions from underlying funds 9,992,074+ 10,871,978+ 1,648,859+ 484,257+
Change in unrealized appreciation/(depreciation)
on investments, futures and foreign currency
transactions (57,647,868) (62,798,838) (9,655,094) (4,315,948)
--------------- ------------- ---------------- ---------------
Net realized and unrealized gains/(losses) on
investments, futures, swaps and foreign
currency transactions (57,813,504) (65,087,388) (10,842,478) (4,555,740)
--------------- ------------- ---------------- ---------------
Change in net assets resulting from operations $ (52,077,717) $ (53,045,999) $ (8,386,533) $ (2,604,928)
=============== ============= ================ ===============
HIGH YIELD TOTAL RETURN SHORT TERM
BOND BOND BOND
------------- ------------- -------------
INVESTMENT INCOME:
Interest income $ 4,402,861 $ 27,431,161 $ 9,559,269
Dividend income 9,006 455,308 97,477
Dividend income from affiliates 10,067 131,162 --
Foreign tax withholding -- -- --
Income from securities lending 14,933 74,647 --
Other income 13 19,484 6,363
------------- ------------- -------------
Total Investment Income 4,436,880 28,111,762 9,663,109
------------- ------------- -------------
EXPENSES:
Investment advisory fees 285,914 2,721,916 1,121,847
Administration fees 70,767 785,678 388,739
Distribution servicing fees - Class A Shares 1,881 42,666 15,273
Distribution servicing fees - Class B Shares 898 31,885 NA
Distribution servicing fees - Class C Shares 716 6,348 3,012
Administrative servicing fees - Class C Shares 239 2,116 1,004
Accounting fees 67,701 137,783 75,328
Registration and filing fees 25,343 25,808 26,077
Transfer and dividend disbursing agent fees 4,760 25,738 59,704
Custody fees 3,370 34,585 12,396
Trustees' fees and expenses 1,489 20,474 9,120
Interest expense -- 2,721 722
Professional fees and other expenses 27,591 64,497 58,040
------------- ------------- -------------
Total expenses 490,669 3,902,215 1,771,262
------------- ------------- -------------
Less: Waiver and/or reimbursement from Advisor and/or affiliates (184,683) (815,990) (315,287)
------------- ------------- -------------
Net Expenses 305,986 3,086,225 1,455,975
------------- ------------- -------------
Net Investment Income 4,130,894 25,025,537 8,207,134
------------- ------------- -------------
REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, FUTURES AND
FOREIGN CURRENCY:
Net realized gains/(losses) on investment and foreign currency
transactions (3,918,400) (33,876,658) 1,245,696
Net realized gains/(losses) on futures transactions and swaps -- 809,398 1,213,775
Realized gain distributions from underlying funds -- -- --
Change in unrealized appreciation/(depreciation) on investments, futures
and foreign currency transactions 1,908,066 (4,145,602) (1,986,398)
------------- ------------- -------------
Net realized and unrealized gains/(losses) on investments, futures, swaps
and foreign currency transactions (2,010,334) (37,212,862) 473,073
------------- ------------- -------------
Change in net assets resulting from operations $ 2,120,560 $ (12,187,325) $ 8,680,207
============= ============= =============
See notes to financial statements.
115
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,
2009 2008 2009 2008
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ (270,799) $ (681,219) $ (233,355) $ (1,316,451)
Net realized gains/(losses) on investment transactions (15,191,493) 11,149,456 (49,912,688) 34,385,207
Net realized gains on futures transactions -- -- -- --
Net change in unrealized appreciation/(depreciation) on
investments and futures (5,469,277) (20,241,491) (17,102,132) (67,734,776)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (20,931,569) (9,773,254) (67,248,175) (34,666,020)
------------- ------------- ------------- -------------
Distributions to shareholders from net investment income:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- -- --
Class C Shares -- -- -- --
Advisor Shares NA -- NA --
Distributions from net realized gains:
Institutional Shares -- (33,959,747) (15,799,771) (43,019,418)
Class A Shares -- (5,435,340) (2,230,945) (4,511,911)
Class B Shares -- (451,736) (484,107) (930,995)
Class C Shares -- (153,157) (84,681) (145,930)
Advisor Shares NA -- NA --
------------- ------------- ------------- -------------
Change in net assets from shareholder distributions -- (39,999,980) (18,599,504) (48,608,254)
------------- ------------- ------------- -------------
Change in net assets from Fund share transactions (7,074,949) (2,327,175) (52,532,002) (31,875,985)
------------- ------------- ------------- -------------
Change in net assets (28,006,518) (52,100,409 (138,379,681) (115,150,259)
NET ASSETS:
Beginning of period 78,692,958 130,793,367 234,353,144 349,503,403
------------- ------------- ------------- -------------
End of period $ 50,686,440 $ 78,692,958 $ 95,973,463 $ 234,353,144
============= ============= ============= =============
Accumulated net investment income/(loss) $ (4,051) $ (5,370) $ -- $ 246,177
============= ============= ============= =============
See notes to financial statements.
116
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,
2009 2008 2009 2008
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 1,717,680 $ 895,087 $ 200,548 $ 285,685
Net realized gains/(losses) on investment transactions (42,381,346) 34,541,802 (4,137,371) 130,202
Net realized gains on futures transactions -- -- -- 20,295
Net change in unrealized appreciation/(depreciation) on
investments and futures (65,154,751) (14,991,297) (278,321) (1,682,949)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (105,818,417) 20,445,592 (4,215,144) (1,246,767)
------------- ------------- ------------- -------------
Distributions to shareholders from net investment income:
Institutional Shares (813,653) (986,849) (196,329) (221,444)
Class A Shares (134,733) (29,511) (41,160) (37,566)
Class B Shares (1,975) -- (1,763) (2,178)
Class C Shares (673) -- (2,363) (2,147)
Advisor Shares NA -- NA (69)
Distributions from net realized gains:
Institutional Shares (10,275,994) (73,562,502) -- --
Class A Shares (2,566,441) (12,508,805) -- --
Class B Shares (411,586) (1,645,398) -- --
Class C Shares (84,424) (335,123) -- --
Advisor Shares NA -- NA --
------------- ------------- ------------- -------------
Change in net assets from shareholder distributions (14,289,479) (89,068,188) (241,615) (263,404)
------------- ------------- ------------- -------------
Change in net assets from Fund share transactions (52,407,403) (96,435,268) (6,301,907) (1,945,651)
------------- ------------- ------------- -------------
Change in net assets (172,515,299) (165,057,864) (10,758,666) (3,455,822)
NET ASSETS:
Beginning of period 478,599,691 643,657,555 20,082,600 23,538,422
------------- ------------- ------------- -------------
End of period $ 306,084,392 $ 478,599,691 $ 9,323,934 $ 20,082,600
============= ============= ============= =============
Accumulated net investment income/(loss) $ 773,474 $ (1) $ 4,032 $ 45,157
============= ============= ============= =============
MICRO CAP VALUE SMALL CAP VALUE
------------------------------- -------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income/(loss) $ 119,980 $ 97,239 $ 1,074,826 $ 1,033,283
Net realized gains/(losses) on investment transactions (6,300,682) 1,986,947 (15,847,456) 1,352,438
Net realized gains on futures transactions -- -- -- --
Net change in unrealized appreciation/(depreciation) on
investments and futures 914,167 (11,154,974) (3,419,451) (5,745,550)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (5,266,535) (9,070,788) (18,192,081) (3,359,829)
------------- ------------- ------------- -------------
Distributions to shareholders from net investment income:
Institutional Shares (82,291) (63,089) (1,120,901) (889,871)
Class A Shares (16,358) (5,157) (17,872) (16,068)
Class B Shares (1,249) -- (3,667) --
Class C Shares (717) -- (2,900) --
Advisor Shares NA -- NA --
Distributions from net realized gains:
Institutional Shares (52,897) (14,388,607) (20,170) (12,045,339)
Class A Shares (24,130) (6,281,771) (390) (287,581)
Class B Shares (7,846) (1,765,824) (197) (130,804)
Class C Shares (4,689) (1,025,048) (125) (78,802)
Advisor Shares NA -- NA --
------------- ------------- ------------- -------------
Change in net assets from shareholder distributions (190,177) (23,529,496) (1,166,222) (13,448,465)
------------- ------------- ------------- -------------
Change in net assets from Fund share transactions (4,264,592) (9,723,760) (2,523,165) (9,599,208)
------------- ------------- ------------- -------------
Change in net assets (9,721,304) (42,324,044) (21,881,468) (26,407,502)
NET ASSETS:
Beginning of period 37,994,931 80,318,975 89,362,688 115,770,190
------------- ------------- ------------- -------------
End of period $ 28,273,627 $ 37,994,931 $ 67,481,220 $ 89,362,688
============= ============= ============= =============
Accumulated net investment income/(loss) $ 51,271 $ 30,966 $ 297,789 $ 531,599
============= ============= ============= =============
See notes to financial statements.
117
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,
2009 2008 2009 2008
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,801,988 $ 3,706,350 $ 8,585,632 $ 11,676,202
Net realized gains/(losses) on investment and foreign
currency transactions (40,793,430) 16,380,198 (111,466,740) 13,782,753
Net realized gains/(losses) on futures transactions -- -- -- --
Net change in unrealized appreciation/(depreciation) on
investments, futures and foreign currency transactions (19,016,994) (74,072,456) (7,681,588) (110,250,509)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (57,008,436) (53,985,908) (110,562,696) (84,791,554)
------------- ------------- ------------- -------------
Distributions to shareholders from net investment income:
Institutional Shares (2,322,599) (2,580,974) (9,528,516) (10,224,754)
Class A Shares (662,989) (635,762) (318,302) (357,749)
Class B Shares (141,121) (86,310) (51,229) (33,647)
Class C Shares (81,413) (47,817) (20,375) (15,288)
Advisor Shares NA (72,498) NA (1,192)
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 (8,541,044) (30,182,996) (6,120,694) (39,371,152)
Class A Shares (2,608,357) (10,927,567) (218,916) (1,695,234)
Class B Shares (826,472) (3,267,630) (49,340) (346,596)
Class C Shares (472,165) (1,556,725) (16,869) (150,963)
Advisor Shares NA -- NA --
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 (15,656,160) (49,358,279) (16,324,241) (52,196,575)
------------- ------------- ------------- -------------
Change in net assets from Fund share transactions (28,684,331) 13,054,375 (61,428,189) (40,555,797)
------------- ------------- ------------- -------------
Change in net assets (101,348,927) (90,289,812) (188,315,126) (177,543,926)
NET ASSETS:
Beginning of period 242,790,615 333,080,427 510,452,805 687,996,731
------------- ------------- ------------- -------------
End of period $ 141,441,688 $ 242,790,615 $ 322,137,679 $ 510,452,805
============= ============= ============= =============
Accumulated net investment income/(loss) $ 44,064 $ 474,171 $ 115,174 $ 1,984,946
============= ============= ============= =============
See notes to financial statements.
118
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,
2009 2008 2009 2008
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,505,793 $ 1,534,818 $ 6,039,613 $ 7,344,365
Net realized gains/(losses) on investment and foreign
currency transactions (46,428,578) (13,472,078) 2,026,937 13,028,282
Net realized gains/(losses) on futures transactions (324,340) (558,529) (1,956,017) (1,429,781)
Net change in unrealized appreciation/(depreciation) on
investments, futures and foreign currency transactions (6,292,012) (8,974,769) (76,773,100) (63,983,252)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (51,539,137) (21,470,558) (70,662,567) (45,040,386)
------------- ------------- ------------- -------------
Distributions to shareholders from net investment income:
Institutional Shares (2,087,267) (1,309,150) (3,568,905) (3,419,524)
Class A Shares (177,656) (79,171) (1,010,745) (974,595)
Class B Shares (7,622) -- (39,152) (26,956)
Class C Shares (736) -- (23,517) (15,089)
Advisor Shares NA -- NA (6,714)
Select Shares NA NA (230,309) (242,811)
Preferred Shares NA NA (1,092,118) (1,084,340)
Trust Shares NA NA (814,295) (978,975)
Distributions from net realized gains:
Institutional Shares -- (856,424) -- --
Class A Shares -- (93,043) -- --
Class B Shares -- (5,094) -- --
Class C Shares -- (525) -- --
Advisor Shares NA -- NA --
Select Shares NA NA -- --
Preferred Shares NA NA -- --
Trust Shares NA NA -- --
------------- ------------- ------------- -------------
Change in net assets from shareholder distributions (2,273,281) (2,343,407) (6,779,041) (6,749,004)
------------- ------------- ------------- -------------
Change in net assets from Fund share transactions (14,200,976) (30,109,974) (7,288,786) (19,736,578)
------------- ------------- ------------- -------------
Change in net assets (68,013,394) (53,923,939) (84,730,394) (71,525,968)
NET ASSETS:
Beginning of period 146,808,646 200,732,585 351,505,584 423,031,552
------------- ------------- ------------- -------------
End of period $ 78,795,252 $ 146,808,646 $ 266,775,190 $ 351,505,584
============= ============= ============= =============
Accumulated net investment income/(loss) $ 193,580 $ 734,778 $ 265,527 $ 1,085,044
============= ============= ============= =============
INTERNATIONAL EQUITY STRATEGIC INCOME
------------------------------- -------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 7,531,396 $ 15,475,196 $ 6,036,212 $ 6,701,216
Net realized gains/(losses) on investment and foreign
currency transactions (147,743,914) 60,759,191 (8,574,686) 1,648,109
Net realized gains/(losses) on futures transactions (1,806,080) (6,567,479) 2,279,929 --
Net change in unrealized appreciation/(depreciation) on
investments, futures and foreign currency transactions 23,614,007 (138,618,987) (4,038,633) (18,166,047)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (118,404,591) (68,952,079) (4,297,178) (9,816,722)
------------- ------------- ------------- -------------
Distributions to shareholders from net investment income:
Institutional Shares (6,743,508) (14,619,372) (5,089,269) (5,673,906)
Class A Shares (311,114) (856,639) (819,367) (794,429)
Class B Shares (15,149) (58,009) (49,786) (58,570)
Class C Shares (7,216) (18,544) (512,601) (619,788)
Advisor Shares NA -- NA (244,710)
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 (41,939,630) (29,176,707) (72,039) (3,176,817)
Class A Shares (2,120,448) (1,897,616) (11,356) (620,947)
Class B Shares (208,199) (173,109) (832) (38,921)
Class C Shares (75,346) (55,581) (8,233) (404,863)
Advisor Shares NA -- NA --
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 (51,420,610) (46,855,577) (6,563,483) (11,632,951)
------------- ------------- ------------- -------------
Change in net assets from Fund share transactions (27,148,779) 55,866,818 (23,171,117) (18,073,057)
------------- ------------- ------------- -------------
Change in net assets (196,973,980) (59,940,838) (34,031,778) (39,522,730)
NET ASSETS:
Beginning of period 444,051,708 503,992,546 116,165,590 155,688,320
------------- ------------- ------------- -------------
End of period $ 247,077,728 $ 444,051,708 $ 82,133,812 $ 116,165,590
============= ============= ============= =============
Accumulated net investment income/(loss) $ 7,006,886 $ 7,073,147 $ 1,179,028 $ (716,566)
============= ============= ============= =============
See notes to financial statements.
119
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,332,101 $ 2,238,026 $ 5,735,787 $ 5,913,234
Net realized losses on investment transactions (8,137,540)+ (4,227,220)+ (10,157,710)+ (2,747,279)+
Realized gain distributions from underlying funds 7,564,541+ 18,471,397+ 9,992,074+ 24,039,269+
Net change in unrealizedappreciation/
(depreciation) on investments and futures (41,114,152) (34,532,247) (57,647,868) (52,255,957)
------------------ ---------------- ---------------- ----------------
Change in net assets resulting from operations (39,355,050) (18,050,044) (52,077,717) (25,050,733)
------------------ ---------------- ---------------- ----------------
Distributions to shareholders from net investment
income:
Institutional Shares (2,064,758) (3,783,500) (4,255,438) (4,509,630)
Class A Shares (746,554) (1,680,334) (2,548,105) (3,524,519)
Class B Shares (171,246) (411,221) (919,596) (1,300,458)
Class C Shares (30,198) (69,660) (118,789) (195,768)
Advisor Shares NA -- NA (5,068)
Distributions from net realized gains:
Institutional Shares (9,245,989) (8,295,757) (9,790,688) (10,423,566)
Class A Shares (3,829,618) (4,002,116) (6,315,446) (8,979,268)
Class B Shares (1,160,583) (1,226,345) (2,821,308) (3,903,239)
Class C Shares (207,309) (204,489) (358,343) (591,434)
Advisor Shares NA -- NA --
------------------ ---------------- ---------------- ----------------
Change in net assets from shareholder
distributions (17,456,255) (19,673,422) (27,127,713) (33,432,950)
------------------ ---------------- ---------------- ----------------
Change in net assets from Fund share transactions 2,684,368 6,391,352 2,543,244 (726,476)
------------------ ---------------- ---------------- ----------------
Change in net assets (54,126,937) (31,332,114) (76,662,186) (59,210,159)
NET ASSETS:
Beginning of Period 168,258,099 199,590,213 283,244,326 342,454,485
------------------ ---------------- ---------------- ----------------
End of period $ 114,131,162 $ 168,258,099 $ 206,582,140 $ 283,244,326
================== ================ ================ ================
Accumulated net investment income $ 38,503 $ 524,464 $ 263,875 $ 2,112,567
================== ================ ================ ================
- ----------
+ Represents realized gains/(losses) from investment transactions with
affiliates.
See notes to financial statements.
120
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 12,041,389 $ 13,239,813 $ 2,455,945 $ 2,765,172
Net realized losses on investment transactions (13,160,528)+ (6,026,303)+ (2,836,243)+ (187,557)+
Realized gain distributions from underlying funds 10,871,978+ 26,088,658+ 1,648,859+ 4,027,567+
Net change in unrealized appreciation/
(depreciation) on investments and futures (62,798,838) (61,882,940) (9,655,094) (11,259,892)
------------------ ---------------- ---------------- ----------------
Change in net assets resulting from operations (53,045,999) (28,580,772) (8,386,533) (4,654,710)
------------------ ---------------- ---------------- ----------------
Distributions to shareholders from net investment
income:
Institutional Shares (11,830,593) (12,600,615) (1,749,146) (1,585,793)
Class A Shares (2,274,819) (2,899,679) (846,815) (1,110,928)
Class B Shares (846,042) (997,130) (377,208) (448,916)
Class C Shares (114,567) (138,359) (58,310) (69,482)
Advisor Shares NA (2,191) NA (427)
Distributions from net realized gains:
Institutional Shares (14,202,395) (20,515,914) (2,063,752) (2,364,527)
Class A Shares (2,974,781) (5,226,919) (1,084,025) (1,864,924)
Class B Shares (1,341,632) (2,353,782) (609,553) (992,900)
Class C Shares (181,300) (326,437) (91,336) (154,214)
Advisor Shares NA -- NA --
------------------ ---------------- ---------------- ----------------
Change in net assets from shareholder
distributions (33,766,129) (45,061,026) (6,880,145) (8,592,111)
------------------ ---------------- ---------------- ----------------
Change in net assets from Fund share transactions (3,351,021) (18,448,288) (6,910,560) (1,172,289)
------------------ ---------------- ---------------- ----------------
Change in net assets (90,163,149) (92,090,086) (22,177,238) (14,419,110)
NET ASSETS:
Beginning of Period 420,110,045 512,200,131 84,255,246 98,674,356
------------------ ---------------- ---------------- ----------------
End of period $ 329,946,896 $ 420,110,045 $ 62,078,008 $ 84,255,246
================== ================ ================ ================
Accumulated net investment income $ 814,893 $ 3,563,523 $ 162,773 $ 700,057
================== ================ ================ ================
LIFEMODEL
CONSERVATIVE(SM) HIGH YIELD BOND
------------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,950,812 $ 1,978,987 $ 4,130,894 $ 4,558,303
Net realized losses on investment transactions (724,049)+ (481,097)+ (3,918,400) (663,376)
Realized gain distributions from underlying funds 484,257+ 1,169,223+ -- --
Net change in unrealized appreciation/
(depreciation) on investments and futures (4,315,948) (4,740,349) 1,908,066 (1,771,658)
------------------ ---------------- ---------------- ----------------
Change in net assets resulting from operations (2,604,928) (2,073,236) 2,120,560 2,123,269
------------------ ---------------- ---------------- ----------------
Distributions to shareholders from net investment
income:
Institutional Shares (1,342,653) (1,120,483) (4,080,098) (4,492,490)
Class A Shares (507,006) (539,011) (80,278) (24,449)
Class B Shares (250,969) (262,530) (8,144) (8,415)
Class C Shares (77,632) (79,687) (8,931) (8,177)
Advisor Shares NA (386) NA (347)
Distributions from net realized gains:
Institutional Shares (477,832) (748,020) -- --
Class A Shares (194,042) (393,285) -- --
Class B Shares (112,843) (245,318) -- --
Class C Shares (33,244) (73,460) -- --
Advisor Shares NA -- NA --
------------------ ---------------- ---------------- ----------------
Change in net assets from shareholder distributions (2,996,221) (3,462,180) (4,177,451) (4,533,878)
------------------ ---------------- ---------------- ----------------
Change in net assets from Fund share transactions (1,367,609) 4,128,475 3,453,354 (15,626,247)
------------------ ---------------- ---------------- ----------------
Change in net assets (6,968,758) (1,406,941) 1,396,463 (18,036,856)
NET ASSETS:
Beginning of Period 50,626,244 52,033,185 50,628,354 68,665,210
------------------ ---------------- ---------------- ----------------
End of period $ 43,657,486 $ 50,626,244 $ 52,024,817 $ 50,628,354
================== ================ ================ ================
Accumulated net investment income $ 165,388 $ 380,904 $ 28,425 $ 74,934
================== ================ ================ ================
See notes to financial statements.
121
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
Change in Net Assets:
Operations:
Net investment income $ 25,025,537 $ 26,528,337 $ 8,207,134 $ 10,629,130
Net realized gains/(losses) on investment and
foreign currency transactions (33,876,658) (17,612,216) 1,245,696 1,136,154
Net realized gains on futures transactions and
swaps 809,398 2,659,320 1,213,775 255,815
Net change in unrealized
appreciation/(depreciation) on investments,
futures and foreign currency transactions (4,145,602) (30,127,802) (1,986,398) (1,546,312)
------------------ ---------------- ---------------- ----------------
Change in net assets resulting from operations (12,187,325) (18,552,361) 8,680,207 10,474,787
------------------ ---------------- ---------------- ----------------
Distributions to shareholders from net investment
income:
Institutional Shares (24,645,395) (25,360,147) (8,194,578) (10,362,660)
Class A Shares (935,295) (922,989) (214,515) (334,432)
Class B Shares (152,861) (131,997) NA NA
Class C Shares (39,308) (49,925) (10,805) (5,308)
Advisor Shares NA (3,634) NA --
Distributions from net realized gains:
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class B Shares -- -- NA NA
Class C Shares -- -- -- --
Advisor Shares NA -- NA --
------------------ ---------------- ---------------- ----------------
Change in net assets from shareholder
distributions (25,772,859) (26,468,692) (8,419,898) (10,702,400)
------------------ ---------------- ---------------- ----------------
Change in net assets from Fund share
transactions (141,182,721) 389,099,037 (17,194,626) (27,910,267)
------------------ ---------------- ---------------- ----------------
Change in net assets (179,142,905) 344,077,984 (16,934,317) (28,137,880)
Net Assets:
Beginning of period 585,062,582 240,984,598 249,074,088 277,211,968
------------------ ---------------- ---------------- ----------------
End of period $ 405,919,677 $ 585,062,582 $ 232,139,771 $ 249,074,088
================== ================ ================ ================
Accumulated net investment income/(loss) $ (188,156) $ 562,408 $ 130,495 $ 207,920
================== ================ ================ ================
See notes to financial statements.
122
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123
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
Capital Transactions:
Institutional Shares
Shares issued $ 6,418,659 $ 18,351,493 $ 11,115,449 $ 26,012,871
Shares issued in connection with acquisition NA NA NA 9,065,539~
Dividends reinvested -- 33,829,024 15,715,482 42,839,455
Shares redeemed (12,100,810) (55,968,785) (77,863,957) (107,998,188)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (5,682,151) (3,788,268) (51,033,026) (30,080,323)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 319,591 549,712 1,090,004 2,412,496
Shares issued in connection with acquisition NA NA NA 1,816,718~
Shares issued in conversion from Advisor Class @ NA 340,223 NA 2,477,345
Dividends reinvested -- 5,302,771 2,164,827 4,385,458
Shares redeemed (1,627,560) (4,524,347) (4,055,370) (12,389,580)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (1,307,969) 1,668,359 (800,539) (1,297,563)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 3,610 3,630 7,274 7,578
Shares issued in connection with acquisition NA NA NA 675,360~
Dividends reinvested -- 436,500 462,901 890,447
Shares redeemed (113,155) (279,380) (1,098,021) (1,526,052)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (109,545) 160,750 (627,846) 47,333
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 37,343 15,275 48,884 66,627
Shares issued in connection with acquisition NA NA NA 156,826~
Dividends reinvested -- 145,603 80,262 136,279
Shares redeemed (12,627) (115,621) (199,737) (204,003)
------------------ ---------------- ---------------- ----------------
Total Class C Shares 24,716 45,257 (70,591) 155,729
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 12,829 NA 381,515
Shares issued in connection with acquisition NA NA NA 1,479,482~
Dividends reinvested NA -- NA --
Shares redeemed NA (426,102) NA (2,562,158)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (413,273) NA (701,161)
------------------ ---------------- ---------------- ----------------
Change from capital transactions $ (7,074,949) $ (2,327,175) $ (52,532,002) $ (31,875,985)
================== ================ ================ ================
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
~ Shares acquired November 16, 2007 from Technology Fund.
* Shares acquired February 22, 2008 from Balanced Fund.
See notes to financial statements.
124
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 27,073,941 $ 40,540,736 $ 930,942 $ 4,569,462
Shares issued in connection with acquisition NA 11,574,529* NA NA
Dividends reinvested 10,804,109 74,027,252 57,911 54,887
Shares redeemed (79,391,844) (232,457,281) (6,926,524) (5,685,681)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (41,513,794) (106,314,764) (5,937,671) (1,061,332)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 3,372,392 2,687,367 126,801 106,632
Shares issued in connection with acquisition NA 17,415,058* NA NA
Shares issued in conversion from Advisor Class @ NA 1,716,200 NA 12,276
Dividends reinvested 2,472,412 11,361,475 38,242 35,470
Shares redeemed (12,207,454) (26,576,497) (461,655) (791,239)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (6,362,650) 6,603,603 (296,612) (636,861)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 20,776 156,529 28,855 5,135
Shares issued in connection with acquisition NA 5,332,543* NA NA
Dividends reinvested 404,610 1,602,919 1,364 1,754
Shares redeemed (4,504,541) (2,965,588) (80,015) (134,198)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (4,079,155) 4,126,403 (49,796) (127,309)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 112,846 107,557 7,256 1,858
Shares issued in connection with acquisition NA 1,010,925* NA NA
Dividends reinvested 80,030 329,184 2,038 1,667
Shares redeemed (644,680) (650,609) (27,122) (111,450)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (451,804) 797,057 (17,828) (107,925)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 188,281 NA --
Shares issued in connection with acquisition NA -- NA NA
Dividends reinvested NA -- NA 52
Shares redeemed NA (1,835,848) NA (12,276)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (1,647,567) NA (12,224)
------------------ ---------------- ---------------- ----------------
Change from capital transactions $ (52,407,403) $ (96,435,268) $ (6,301,907) $ (1,945,651)
================== ================ ================ ================
MICRO CAP VALUE SMALL CAP VALUE
------------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 4,684,500 $ 6,066,051 $ 14,612,223 $ 26,579,330
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested 122,993 14,340,480 830,143 12,679,817
Shares redeemed (6,923,650) (29,004,091) (17,960,522) (47,594,887)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (2,116,157) (8,597,560) (2,518,156) (8,335,740)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 1,749,740 2,244,932 587,156 301,793
Shares issued in connection with acquisition NA NA NA NA
Shares issued in conversion from Advisor Class @ NA 7,212,083 NA 607,582
Dividends reinvested 31,711 5,254,257 14,466 261,145
Shares redeemed (3,322,987) (8,048,233) (626,936) (1,306,456)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (1,541,536) 6,663,039 (25,314) (135,936)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 6,174 12,049 21,423 4,339
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested 8,327 1,658,928 3,281 110,053
Shares redeemed (604,084) (1,314,436) (92,963) (195,184)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (589,583) 356,541 (68,259) (80,792)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 345,691 410,289 203,264 29,724
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested 4,119 799,698 2,269 68,484
Shares redeemed (367,126) (935,561) (116,969) (308,994)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (17,316) 274,426 88,564 (210,786)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 140,108 NA 6,367
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested NA -- NA --
Shares redeemed NA (8,560,314) NA (842,321)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (8,420,206) NA (835,954)
------------------ ---------------- ---------------- ----------------
Change from capital transactions $ (4,264,592) $ (9,723,760) $ (2,523,165) $ (9,599,208)
================== ================ ================ ================
See notes to financial statements.
125
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,040,498 2,224,928 1,293,847 1,922,486
Shares issued in connection with acquisition NA NA NA 589,027~
Dividends reinvested -- 3,689,098 2,742,667 3,093,101
Shares redeemed (2,188,661) (6,044,587) (10,277,404) (8,179,685)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (1,148,163) (130,561) (6,240,890) (2,575,071)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 63,858 59,687 167,708 133,865
Shares issued in connection with acquisition NA NA NA 121,948~
Shares issued in conversion from Advisor Class @ NA 27,415 NA 171,206
Dividends reinvested -- 618,760 397,216 328,745
Shares redeemed (313,785) (533,471) (605,853) (907,634)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (249,927) 172,391 (40,929) (151,870)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 705 440 1,384 389
Shares issued in connection with acquisition NA NA NA 48,285~
Dividends reinvested -- 55,253 94,470 71,637
Shares redeemed (23,793) (33,934) (185,976) (127,139)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (23,088) 21,759 (90,122) (6,828)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 8,920 1,858 8,094 5,665
Shares issued in connection with acquisition NA NA NA 11,743~
Dividends reinvested -- 18,407 17,524 11,708
Shares redeemed (2,843) (15,732) (31,544) (17,421)
------------------ ---------------- ---------------- ----------------
Total Class C Shares 6,077 4,533 (5,926) 11,695
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 1,021 NA 25,997
Shares issued in connection with acquisition NA NA NA 100,989~
Dividends reinvested NA -- NA --
Shares redeemed NA (33,998) NA (178,278)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (32,977) NA (51,292)
------------------ ---------------- ---------------- ----------------
Change from capital transactions (1,415,101) 35,145 (6,377,867) (2,773,366)
================== ================ ================ ================
@ Advisor Shares merged into Class A Shares on November 26, 2007.
~ Shares acquired November 16, 2007 from Technology Fund.
* Shares acquired February 22, 2008 from Balanced Fund.
See notes to financial statements.
126
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,219,897 2,239,699 57,388 177,404
Shares issued in connection with acquisition NA 710,146* NA NA
Dividends reinvested 1,007,311 4,062,751 3,147 2,067
Shares redeemed (6,592,569) (13,513,980) (377,370) (222,940)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (3,365,361) (6,501,384) (316,835) (43,469)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 307,814 154,719 7,594 4,210
Shares issued in connection with acquisition NA 1,096,929* NA NA
Shares issued in conversion from Advisor Class @ NA 89,853 NA 487
Dividends reinvested 237,444 640,172 2,109 1,348
Shares redeemed (1,056,033) (1,523,617) (26,090) (30,992)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (510,775) 458,056 (16,387) (24,947)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 1,970 9,329 1,854 207
Shares issued in connection with acquisition NA 355,892* NA NA
Dividends reinvested 41,585 95,526 74 68
Shares redeemed (427,488) (183,836) (5,371) (5,510)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (383,933) 276,911 (3,443) (5,235)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 9,695 6,897 496 79
Shares issued in connection with acquisition NA 69,597* NA NA
Dividends reinvested 8,505 20,232 118 67
Shares redeemed (59,216) (41,209) (1,793) (4,781)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (41,016) 55,517 (1,179) (4,635)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 9,314 NA --
Shares issued in connection with acquisition NA -- NA NA
Dividends reinvested NA -- NA 2
Shares redeemed NA (97,307) NA (489)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (87,993) NA (487)
------------------ ---------------- ---------------- ----------------
Change from capital transactions (4,301,085) (5,798,893) (337,844) (78,773)
================== ================ ================ ================
MICRO CAP VALUE SMALL CAP VALUE
------------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,665,832 1,337,937 1,124,149 1,597,844
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested 44,842 3,668,554 73,071 728,695
Shares redeemed (2,382,257) (6,304,922) (1,433,005) (2,714,594)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (671,583) (1,298,431) (235,785) (388,055)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 670,372 500,792 44,281 17,466
Shares issued in connection with acquisition NA NA NA NA
Shares issued in conversion from Advisor Class @ NA 1,208,054 NA 32,491
Dividends reinvested 13,694 1,447,533 1,286 15,198
Shares redeemed (1,220,126) (1,838,902) (49,863) (74,668)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (536,060) 1,317,477 (4,296) (9,513)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 2,095 3,994 1,820 299
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested 3,993 501,186 303 6,694
Shares redeemed (250,499) (340,190) (9,124) (12,283)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (244,411) 164,990 (7,001) (5,290)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 140,725 117,306 16,407 1,806
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested 1,976 241,601 210 4,176
Shares redeemed (162,966) (252,716) (9,148) (19,033)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (20,265) 106,191 7,469 (13,051)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 21,671 NA 319
Shares issued in connection with acquisition NA NA NA NA
Dividends reinvested NA -- NA --
Shares redeemed NA (1,435,231) NA (44,745)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (1,413,560) NA (44,426)
------------------ ---------------- ---------------- ----------------
Change from capital transactions (1,472,319) (1,123,333) (239,613) (460,335)
================== ================ ================ ================
See notes to financial statements.
127
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 10,237,700 $ 54,056,402 $ 49,717,152 $ 144,979,786
Dividends reinvested 9,970,038 31,374,511 11,015,883 43,348,231
Shares redeemed (42,308,602) (75,018,207) (118,271,630) (220,635,610)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (22,100,864) 10,412,706 (57,538,595) (32,307,593)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 7,821,432 18,824,047 2,372,844 6,003,641
Shares issued in conversion from Advisor Class @ NA 29,310,119 NA 310,464
Dividends reinvested 2,716,384 9,627,571 474,938 1,751,053
Shares redeemed (14,520,253) (27,523,714) (5,270,092) (14,854,391)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (3,982,437) 30,238,023 (2,422,310) (6,789,233)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 34,875 227,256 44,386 83,847
Dividends reinvested 899,625 3,104,922 84,877 312,285
Shares redeemed (2,722,369) (4,672,578) (1,004,917) (1,216,232)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (1,787,869) (1,340,400) (875,654) (820,100)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 1,166,775 6,212,110 67,881 387,669
Dividends reinvested 247,016 702,368 21,192 107,176
Shares redeemed (2,226,952) (2,891,566) (680,703) (781,046)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (813,161) 4,022,912 (591,630) (286,201)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 569,796 NA 1,410
Dividends reinvested NA 69,066 NA 954
Shares redeemed NA (30,917,728) NA (355,034)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (30,278,866) NA (352,670)
------------------ ---------------- ---------------- ----------------
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 $ (28,684,331) $ 13,054,375 $ (61,428,189) $ (40,555,797)
================== ================ ================ ================
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
See notes to financial statements.
128
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,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 67,753 $ 9,364,536 $ 65,565,256 $ 59,212,272
Dividends reinvested 1,797,417 1,897,645 3,204,806 3,073,842
Shares redeemed (13,832,544) (36,455,733) (59,677,149) (61,716,059)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (11,967,374) (25,193,552) 9,092,913 570,055
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 77,435 841,577 11,104,896 17,939,461
Shares issued in conversion from Advisor Class @ NA 475,004 NA 1,644,628
Dividends reinvested 168,301 161,295 977,174 938,144
Shares redeemed (2,365,487) (5,711,578) (14,261,713) (22,359,455)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (2,119,751) (4,233,702) (2,179,643) (1,837,222)
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued -- 27,342 11,404 37,119
Dividends reinvested 5,018 3,452 32,917 22,886
Shares redeemed (101,749) (224,507) (389,563) (536,422)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (96,731) (193,713) (345,242) (476,417)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 11,299 3,970 721,303 789,910
Dividends reinvested 237 125 19,116 12,603
Shares redeemed (28,656) (43,347) (783,330) (878,853)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (17,120) (39,252) (42,911) (76,340)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 25,250 NA 98,888
Dividends reinvested NA -- NA 6,327
Shares redeemed NA (475,005) NA (2,338,049)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (449,755) NA (2,232,834)
------------------ ---------------- ---------------- ----------------
Select Shares
Shares issued NA NA 2,749,243 2,650,941
Dividends reinvested NA NA 183,033 189,097
Shares redeemed NA NA (2,040,830) (8,021,420)
------------------ ---------------- ---------------- ----------------
Total Select Shares NA NA 891,446 (5,181,382)
------------------ ---------------- ---------------- ----------------
Preferred Shares
Shares issued NA NA 19,094,649 13,337,348
Dividends reinvested NA NA 1,045,835 1,031,374
Shares redeemed NA NA (20,332,697) (18,226,313)
------------------ ---------------- ---------------- ----------------
Total Preferred Shares NA NA (192,213) (3,857,591)
------------------ ---------------- ---------------- ----------------
Trust Shares
Shares issued NA NA 818,301 1,419,562
Dividends reinvested NA NA 168,050 211,891
Shares redeemed NA NA (15,499,487) (8,276,300)
------------------ ---------------- ---------------- ----------------
Total Trust Shares NA NA (14,513,136) (6,644,847)
------------------ ---------------- ---------------- ----------------
Change from capital transactions $ (14,200,976) $ (30,109,974) $ (7,288,786) $ (19,736,578)
================== ================ ================ ================
INTERNATIONAL EQUITY STRATEGIC INCOME
------------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
------------------ ---------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 24,506,724 $ 107,442,491 $ 20,533,451 $ 21,983,904
Dividends reinvested 46,586,794 37,795,968 638,453 4,073,364
Shares redeemed (97,228,310) (84,685,323) (42,984,155) (35,830,867)
------------------ ---------------- ---------------- ----------------
Total Institutional Shares (26,134,792) 60,553,136 (21,812,251) (9,773,599)
------------------ ---------------- ---------------- ----------------
Class A Shares
Shares issued 975,859 2,896,227 3,139,777 1,249,377
Shares issued in conversion from Advisor Class @ NA 9,645,937 NA 15,920,156
Dividends reinvested 2,246,616 2,514,901 576,407 1,125,496
Shares redeemed (3,788,133) (9,970,244) (4,202,885) (5,938,850)
------------------ ---------------- ---------------- ----------------
Total Class A Shares (565,658) 5,086,821 (486,701) 12,356,179
------------------ ---------------- ---------------- ----------------
Class B Shares
Shares issued 24,933 301,088 43,795 57,385
Dividends reinvested 159,815 149,739 24,986 55,348
Shares redeemed (567,120) (347,766) (211,271) (460,088)
------------------ ---------------- ---------------- ----------------
Total Class B Shares (382,372) 103,061 (142,490) (347,355)
------------------ ---------------- ---------------- ----------------
Class C Shares
Shares issued 18,796 338,590 1,121,295 917,581
Dividends reinvested 71,937 63,241 381,784 816,495
Shares redeemed (156,690) (343,340) (2,232,754) (5,538,549)
------------------ ---------------- ---------------- ----------------
Total Class C Shares (65,957) 58,491 (729,675) (3,804,473)
------------------ ---------------- ---------------- ----------------
Advisor Shares @
Shares issued NA 102,711 NA 114,121
Dividends reinvested NA -- NA 155,553
Shares redeemed NA (10,037,402) NA (16,773,483)
------------------ ---------------- ---------------- ----------------
Total Advisor Shares NA (9,934,691) NA (16,503,809)
------------------ ---------------- ---------------- ----------------
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 $ (27,148,779) $ 55,866,818 $ (23,171,117) $ (18,073,057)
================== ================ ================ ================
See notes to financial statements.
129
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 774,848 2,610,095 6,216,790 11,460,724
Dividends reinvested 905,857 1,429,339 1,354,418 3,192,740
Shares redeemed (3,401,904) (3,546,567) (13,935,660) (17,353,887)
--------------- --------------- --------------- ---------------
Total Institutional Shares (1,721,199) 492,867 (6,364,452) (2,700,423)
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 689,081 865,717 306,746 442,042
Shares issued in conversion from Advisor
Class @ NA 1,247,239 NA 22,896
Dividends reinvested 249,029 446,442 57,608 129,520
Shares redeemed (1,211,285) (1,331,075) (622,456) (1,114,026)
--------------- --------------- --------------- ---------------
Total Class A Shares (273,175) 1,228,323 (258,102) (519,568)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 3,080 11,141 5,313 5,935
Dividends reinvested 87,524 150,389 10,164 22,786
Shares redeemed (233,095) (232,910) (124,246) (93,999)
--------------- --------------- --------------- ---------------
Total Class B Shares (142,491) (71,380) (108,769) (65,278)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 98,272 289,994 7,735 28,721
Dividends reinvested 24,066 34,095 2,557 7,986
Shares redeemed (196,851) (146,217) (73,078) (59,831)
--------------- --------------- --------------- ---------------
Total Class C Shares (74,513) 177,872 (62,786) (23,124)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 22,635 NA 97
Dividends reinvested NA 2,668 NA 64
Shares redeemed NA (1,319,178) NA (26,037)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (1,293,875) NA (25,876)
--------------- --------------- --------------- ---------------
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 (2,211,378) 533,807 (6,794,109) (3,334,269)
=============== =============== =============== ===============
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
See notes to financial statements.
130
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,021 585,317 3,715,164 2,234,919
Dividends reinvested 178,373 114,438 175,320 114,790
Shares redeemed (1,246,923) (2,219,177) (3,372,663) (2,321,873)
--------------- --------------- --------------- ---------------
Total Institutional Shares (1,066,529) (1,519,422) 517,821 27,836
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 4,845 51,661 642,151 684,184
Shares issued in conversion from Advisor
Class @ NA 29,339 NA 61,758
Dividends reinvested 16,498 9,832 53,309 35,041
Shares redeemed (254,555) (360,870) (795,179) (846,425)
--------------- --------------- --------------- ---------------
Total Class A Shares (233,212) (270,038) (99,719) (65,442)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued -- 1,621 498 1,392
Dividends reinvested 479 200 1,775 852
Shares redeemed (11,508) (14,215) (22,246) (20,101)
--------------- --------------- --------------- ---------------
Total Class B Shares (11,029) (12,394) (19,973) (17,857)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 1,088 243 42,082 30,437
Dividends reinvested 23 7 1,029 471
Shares redeemed (3,851) (2,580) (43,656) (33,474)
--------------- --------------- --------------- ---------------
Total Class C Shares (2,740) (2,330) (545) (2,566)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 1,478 NA 3,539
Dividends reinvested NA -- NA 219
Shares redeemed NA (29,022) NA (86,159)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (27,544) NA (82,401)
--------------- --------------- --------------- ---------------
Select Shares
Shares issued NA NA 159,659 99,285
Dividends reinvested NA NA 10,055 6,996
Shares redeemed NA NA (115,641) (288,574)
--------------- --------------- --------------- ---------------
Total Select Shares NA NA 54,073 (182,293)
--------------- --------------- --------------- ---------------
Preferred Shares
Shares issued NA NA 1,059,894 500,849
Dividends reinvested NA NA 57,044 38,431
Shares redeemed NA NA (1,182,985) (685,113)
--------------- --------------- --------------- ---------------
Total Preferred Shares NA NA (66,047) (145,833)
--------------- --------------- --------------- ---------------
Trust Shares
Shares issued NA NA 47,318 53,269
Dividends reinvested NA NA 8,792 7,891
Shares redeemed NA NA (837,000) (307,364)
--------------- --------------- --------------- ---------------
Total Trust Shares NA NA (780,890) (246,204)
--------------- --------------- --------------- ---------------
Change from capital transactions (1,313,510) (1,831,728) (395,280) (714,760)
=============== =============== =============== ===============
INTERNATIONAL EQUITY STRATEGIC INCOME
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 3,479,441 7,675,377 2,403,301 2,262,109
Dividends reinvested 7,729,437 2,466,260 81,968 385,400
Shares redeemed (13,322,716) (5,925,937) (5,502,079) (3,402,388)
--------------- --------------- --------------- ---------------
Total Institutional Shares (2,113,838) 4,215,700 (3,016,810) (754,879)
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 137,136 190,419 387,652 119,016
Shares issued in conversion from Advisor
Class @ NA 608,573 NA 1,483,705
Dividends reinvested 373,101 165,597 73,496 108,234
Shares redeemed (536,206) (701,535) (538,025) (573,107)
--------------- --------------- --------------- ---------------
Total Class A Shares (25,969) 263,054 (76,877) 1,137,848
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 3,766 21,339 6,113 5,647
Dividends reinvested 27,360 10,032 3,192 5,271
Shares redeemed (75,373) (25,184) (28,113) (43,372)
--------------- --------------- --------------- ---------------
Total Class B Shares (44,247) 6,187 (18,808) (32,454)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 2,809 24,176 142,340 88,856
Dividends reinvested 12,797 4,363 49,270 78,296
Shares redeemed (22,064) (25,632) (288,533) (530,122)
--------------- --------------- --------------- ---------------
Total Class C Shares (6,458) 2,907 (96,923) (362,970)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 6,258 NA 10,234
Dividends reinvested NA -- NA 13,901
Shares redeemed NA (633,597) NA (1,560,928)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (627,339) NA (1,536,793)
--------------- --------------- --------------- ---------------
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 (2,190,512) 3,860,509 (3,209,418) (1,549,248)
=============== =============== =============== ===============
See notes to financial statements.
131
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 21,584,414 $ 36,651,093 $ 29,733,716 $ 35,765,190
Dividends reinvested 11,244,980 11,973,027 13,749,962 14,649,716
Shares redeemed (28,032,959) (36,991,479) (30,309,711) (35,921,085)
--------------- --------------- --------------- ---------------
Total Institutional Shares 4,796,435 11,632,641 13,173,967 14,493,821
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 3,481,057 6,578,900 6,082,272 11,129,345
Shares issued in conversion from Advisor
Class @ NA 1,025,921 NA 1,726,994
Dividends reinvested 4,185,747 5,129,311 8,001,053 11,137,882
Shares redeemed (9,041,044) (14,482,942) (20,599,240) (31,570,465)
--------------- --------------- --------------- ---------------
Total Class A Shares (1,374,240) (1,748,810) (6,515,915) (7,576,244)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 115,932 251,759 383,209 867,984
Dividends reinvested 1,203,777 1,437,622 3,359,249 4,594,307
Shares redeemed (1,998,602) (3,781,777) (6,850,571) (9,610,608)
--------------- --------------- --------------- ---------------
Total Class B Shares (678,893) (2,092,396) (3,108,113) (4,148,317)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 143,905 256,370 209,351 575,356
Dividends reinvested 195,006 225,654 393,456 588,739
Shares redeemed (397,845) (712,318) (1,609,502) (2,699,330)
--------------- --------------- --------------- ---------------
Total Class C Shares (58,934) (230,294) (1,006,695) (1,535,235)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 62,490 NA 87,212
Dividends reinvested NA -- NA 4,049
Shares redeemed NA (1,232,279) NA (2,051,762)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (1,169,789) NA (1,960,501)
--------------- --------------- --------------- ---------------
Change from capital transactions $ 2,684,368 $ 6,391,352 $ 2,543,244 $ (726,476)
=============== =============== =============== ===============
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
See notes to financial statements.
132
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 46,521,777 $ 63,815,563 $ 10,419,494 $ 20,168,978
Dividends reinvested 25,775,707 32,832,009 3,692,672 3,836,684
Shares redeemed (62,264,457) (100,326,429) (13,971,331) (16,227,791)
--------------- --------------- --------------- ---------------
Total Institutional Shares 10,033,027 (3,678,857) 140,835 7,777,871
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 4,328,467 15,105,360 2,291,596 2,584,086
Shares issued in conversion from Advisor
Class @ NA 490,793 NA 67,850
Dividends reinvested 4,788,302 7,377,426 1,773,109 2,757,705
Shares redeemed (17,066,319) (31,148,455) (7,811,954) (11,387,672)
--------------- --------------- --------------- ---------------
Total Class A Shares (7,949,550) (8,174,876) (3,747,249) (5,978,031)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 463,146 1,084,157 243,511 472,662
Dividends reinvested 1,924,453 2,916,318 875,634 1,286,727
Shares redeemed (7,116,870) (9,160,343) (4,012,016) (4,348,925)
--------------- --------------- --------------- ---------------
Total Class B Shares (4,729,271) (5,159,868) (2,892,871) (2,589,536)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 99,628 325,086 42,756 440,591
Dividends reinvested 246,826 385,650 112,112 177,134
Shares redeemed (1,051,681) (1,721,243) (566,143) (932,535)
--------------- --------------- --------------- ---------------
Total Class C Shares (705,227) (1,010,507) (411,275) (314,810)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 78,341 NA --
Dividends reinvested NA 1,867 NA 427
Shares redeemed NA (504,388) NA (68,210)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (424,180) NA (67,783)
--------------- --------------- --------------- ---------------
Change from capital transactions $ (3,351,021) $ (18,448,288) $ (6,910,560) $ (1,172,289)
=============== =============== =============== ===============
LIFEMODEL
CONSERVATIVE(SM) HIGH YIELD BOND
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 11,051,704 $ 18,340,781 $ 9,054,518 $ 11,952,468
Dividends reinvested 1,778,305 1,823,371 1,917,597 2,386,235
Shares redeemed (11,134,755) (13,605,138) (11,403,874) (30,016,314)
--------------- --------------- --------------- ---------------
Total Institutional Shares 1,695,254 6,559,014 (431,759) (15,677,611)
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 1,943,298 3,811,460 4,515,792 1,737,216
Shares issued in conversion from Advisor
Class @ NA 46,710 NA 13,971
Dividends reinvested 645,185 886,855 12,331 9,811
Shares redeemed (4,109,003) (5,438,575) (594,558) (1,691,250)
--------------- --------------- --------------- ---------------
Total Class A Shares (1,520,520) (693,550) 3,933,565 69,748
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 660,773 360,223 11,331 73,109
Dividends reinvested 302,218 434,348 2,708 2,954
Shares redeemed (2,279,776) (1,907,057) (67,129) (72,393)
--------------- --------------- --------------- ---------------
Total Class B Shares (1,316,785) (1,112,486) (53,090) 3,670
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 175,194 223,628 9,991 556
Dividends reinvested 86,872 125,660 2,507 2,039
Shares redeemed (487,624) (927,467) (7,860) (10,787)
--------------- --------------- --------------- ---------------
Total Class C Shares (225,558) (578,179) 4,638 (8,192)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA -- NA --
Dividends reinvested NA 386 NA 109
Shares redeemed NA (46,710) NA (13,971)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (46,324) NA (13,862)
--------------- --------------- --------------- ---------------
Change from capital transactions $ (1,367,609) $ 4,128,475 $ 3,453,354 $ (15,626,247)
=============== =============== =============== ===============
See notes to financial statements.
133
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,562,091 2,420,541 3,298,709 2,524,975
Dividends reinvested 1,452,831 747,918 1,659,510 991,426
Shares redeemed (3,176,308) (2,420,205) (3,404,777) (2,491,206)
--------------- --------------- --------------- ---------------
Total Institutional Shares 838,614 748,254 1,553,442 1,025,195
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 414,457 426,168 708,697 778,679
Shares issued in conversion from Advisor
Class @ NA 62,824 NA 113,097
Dividends reinvested 544,811 321,974 967,295 754,334
Shares redeemed (1,042,412) (961,357) (2,243,406) (2,250,245)
--------------- --------------- --------------- ---------------
Total Class A Shares (83,144) (150,391) (567,414) (604,135)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 15,885 17,098 43,127 60,488
Dividends reinvested 162,756 92,484 412,201 313,003
Shares redeemed (242,929) (254,078) (766,758) (683,464)
--------------- --------------- --------------- ---------------
Total Class B Shares (64,288) (144,496) (311,430) (309,973)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 14,474 17,035 24,117 39,854
Dividends reinvested 26,401 14,531 48,280 40,139
Shares redeemed (51,233) (48,144) (176,420) (189,582)
--------------- --------------- --------------- ---------------
Total Class C Shares (10,358) (16,578) (104,023) (109,589)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 3,820 NA 5,575
Dividends reinvested NA -- NA 256
Shares redeemed NA (74,630) NA (133,454)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (70,810) NA (127,623)
--------------- --------------- --------------- ---------------
Change from capital transactions 680,824 365,979 570,575 (126,125)
=============== =============== =============== ===============
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
See notes to financial statements.
134
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 5,247,730 5,027,555 1,278,141 1,796,229
Dividends reinvested 3,095,839 2,572,715 476,626 337,217
Shares redeemed (7,026,668) (7,999,852) (1,660,866) (1,425,032)
--------------- --------------- --------------- ---------------
Total Institutional Shares 1,316,901 (399,582) 93,901 708,414
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 500,906 1,182,729 287,646 233,445
Shares issued in conversion from Advisor
Class @ NA 37,069 NA 5,726
Dividends reinvested 575,526 577,991 229,087 242,334
Shares redeemed (1,923,691) (2,510,605) (924,852) (1,031,296)
--------------- --------------- --------------- ---------------
Total Class A Shares (847,259) (712,816) (408,119) (549,791)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 52,159 87,734 28,682 43,140
Dividends reinvested 233,412 228,926 113,791 113,227
Shares redeemed (811,344) (745,942) (493,623) (391,623)
--------------- --------------- --------------- ---------------
Total Class B Shares (525,773) (429,282) (351,150) (235,256)
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 11,388 25,884 5,514 39,191
Dividends reinvested 29,904 30,248 14,554 15,573
Shares redeemed (119,771) (139,443) (69,064) (85,312)
--------------- --------------- --------------- ---------------
Total Class C Shares (78,479) (83,311) (48,996) (30,548)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 5,704 NA --
Dividends reinvested NA 138 NA 35
Shares redeemed NA (38,164) NA (5,760)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (32,322) NA (5,725)
--------------- --------------- --------------- ---------------
Change from capital transactions (134,610) (1,657,313) (714,364) (112,906)
=============== =============== =============== ===============
LIFEMODEL
CONSERVATIVE(SM) HIGH YIELD BOND
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 1,295,159 1,720,311 1,212,995 1,247,164
Dividends reinvested 214,300 172,275 256,877 250,007
Shares redeemed (1,295,659) (1,273,251) (1,520,323) (3,135,169)
--------------- --------------- --------------- ---------------
Total Institutional Shares 213,800 619,335 (50,451) (1,637,998)
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 220,013 362,875 569,706 174,624
Shares issued in conversion from Advisor
Class @ NA 4,277 NA 1,468
Dividends reinvested 77,756 83,839 1,634 1,035
Shares redeemed (471,212) (517,198) (82,686) (172,818)
--------------- --------------- --------------- ---------------
Total Class A Shares (173,443) (66,207) 488,654 4,309
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 78,856 34,927 1,385 7,898
Dividends reinvested 36,666 41,089 356 314
Shares redeemed (266,799) (182,825) (10,205) (7,478)
--------------- --------------- --------------- ---------------
Total Class B Shares (151,277) (106,809) (8,464) 734
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 21,157 20,812 1,202 60
Dividends reinvested 10,533 11,881 337 215
Shares redeemed (54,920) (86,320) (1,000) (1,144)
--------------- --------------- --------------- ---------------
Total Class C Shares (23,230) (53,627) 539 (869)
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA -- NA --
Dividends reinvested NA 35 NA 11
Shares redeemed NA (4,281) NA (1,463)
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (4,246) NA (1,452)
--------------- --------------- --------------- ---------------
Change from capital transactions (134,150) 388,446 430,278 (1,635,276)
=============== =============== =============== ===============
See notes to financial statements.
135
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
CAPITAL TRANSACTIONS:
Institutional Shares
Shares issued $ 19,208,925 $ 55,448,603 $ 48,552,815 $ 38,778,368
Shares issued in connection with
acquisition ofIntermediate Bond Fund ~ NA 432,862,663 NA NA
Shares issued in connection with
acquisition of Government Bond Fund ~ NA 22,356,315 NA NA
Dividends reinvested 17,544,398 15,233,723 4,464,621 5,752,008
Shares redeemed (173,512,167) (153,495,216) (70,105,875) (69,879,465)
--------------- --------------- --------------- ---------------
Total Institutional Shares (136,758,844) 372,406,088 (17,088,439) (25,349,089)
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 1,316,714 4,757,347 2,357,106 1,555,050
Shares issued in connection with
acquisition of Intermediate Bond Fund ~ NA 12,706,128 NA NA
Shares issued in connection with
acquisition of Government Bond Fund ~ NA 2,629,403 NA NA
Shares issued in conversion from Advisor
Class @ NA 339,216 NA --
Dividends reinvested 752,674 761,624 179,092 296,526
Shares redeemed (5,455,646) (7,293,118) (3,333,529) (4,423,619)
--------------- --------------- --------------- ---------------
Total Class A Shares (3,386,258) 13,900,600 (797,331) (2,572,043)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 833,950 755,230 NA NA
Shares issued in connection with
acquisition of
Intermediate Bond Fund ~ NA 1,750,919 NA NA
Dividends reinvested 112,499 109,788 NA NA
Shares redeemed (1,273,235) (1,009,669) NA NA
--------------- --------------- --------------- ---------------
Total Class B Shares (326,786) 1,606,268 NA NA
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 50,745 45,337 720,627 119,629
Shares issued in connection with
acquisition of Intermediate Bond Fund ~ NA 450,228 NA NA
Shares issued in connection with
acquisition of Government Bond Fund ~ NA 1,153,974 NA NA
Dividends reinvested 36,850 34,380 4,438 2,401
Shares redeemed (798,428) (262,540) (33,921) (111,142)
--------------- --------------- --------------- ---------------
Total Class C Shares (710,833) 1,421,379 691,144 10,888
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 7,096 NA (23)
Shares issued in connection with
acquisition of Intermediate Bond Fund ~ NA 101,035 NA NA
Dividends reinvested NA 2,939 NA --
Shares redeemed NA (346,368) NA --
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (235,298) NA (23)
--------------- --------------- --------------- ---------------
Change from capital transactions $ (141,182,721) $ 389,099,037 $ (17,194,626) $ (27,910,267)
=============== =============== =============== ===============
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
~ Shares acquired November 16, 2007.
See notes to financial statements.
136
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,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS:
Institutional Shares
Shares issued 2,297,103 5,808,716 5,307,102 4,132,887
Shares issued in connection with
acquisition of
Intermediate Bond Fund ~ NA 44,475,085 NA NA
Shares issued in connection with
acquisition of
Government Bond Fund ~ NA 2,297,031 NA NA
Dividends reinvested 2,120,776 1,599,833 492,093 613,604
Shares redeemed (20,679,055) (16,017,321) (7,703,125) (7,423,354)
--------------- --------------- --------------- ---------------
Total Institutional Shares (16,261,176) 38,163,344 (1,903,930) (2,676,863)
--------------- --------------- --------------- ---------------
Class A Shares
Shares issued 158,575 490,264 257,999 165,297
Shares issued in connection with
acquisition of
Intermediate Bond Fund ~ NA 1,306,274 NA NA
Shares issued in connection with
acquisition of
Government Bond Fund ~ NA 270,320 NA NA
Shares issued in conversion from Advisor
Class @ NA 34,614 NA --
Dividends reinvested 91,019 79,925 19,746 31,641
Shares redeemed (657,156) (761,289) (366,103) (471,481)
--------------- --------------- --------------- ---------------
Total Class A Shares (407,562) 1,420,108 (88,358) (274,543)
--------------- --------------- --------------- ---------------
Class B Shares
Shares issued 100,422 78,326 NA NA
Shares issued in connection with
acquisition of
Intermediate Bond Fund ~ NA 179,884 NA NA
Dividends reinvested 13,605 11,512 NA NA
Shares redeemed (154,043) (105,506) NA NA
--------------- --------------- --------------- ---------------
Total Class B Shares (40,016) 164,216 NA NA
--------------- --------------- --------------- ---------------
Class C Shares
Shares issued 6,026 4,698 79,265 12,753
Shares issued in connection with
acquisition of
Intermediate Bond Fund ~ NA 46,240 NA NA
Shares issued in connection with
acquisition of
Government Bond Fund ~ NA 118,517 NA NA
Dividends reinvested 4,449 3,612 487 256
Shares redeemed (91,543) (27,256) (3,746) (11,825)
--------------- --------------- --------------- ---------------
Total Class C Shares (81,068) 145,811 76,006 1,184
--------------- --------------- --------------- ---------------
Advisor Shares @
Shares issued NA 733 NA --
Shares issued in connection with
acquisition of
Intermediate Bond Fund ~ NA 10,380 NA NA
Dividends reinvested NA 303 NA --
Shares redeemed NA (35,330) NA --
--------------- --------------- --------------- ---------------
Total Advisor Shares NA (23,914) NA --
--------------- --------------- --------------- ---------------
Change from capital transactions (16,789,822) 39,869,565 (1,916,282) (2,950,222)
=============== =============== =============== ===============
- ----------
@ Advisor Shares merged into Class A Shares on November 26, 2007.
~ Shares acquired November 16, 2007.
See notes to financial statements.
137
FIFTH THIRD FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JULY 31, 2009
- --------------------------------------------------------------------------------
STRUCTURED
LARGE CAP
PLUS
-------------
INCREASE (DECREASE) IN CASH:
CASH FLOWS FROM OPERATING ACTIVITIES:
Net decrease in net assets from operations $ (51,539,137)
ADJUSTMENTS TO RECONCILE NET DECREASE IN NET ASSETS FROM
OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES:
Purchases of long-term securities (88,445,051)
Proceeds from sales of long-term securities 139,412,923
Sale of short-term investment securities, net (2,292,747)
Proceeds from securities sold short 45,115,644
Buys to cover for securities sold short (78,491,825)
Increase in deposits with brokers for futures contracts (315,000)
Decrease in dividends receivable 109,014
Increase in other assets (7,402)
Proceeds from futures transactions (127,885)
Increase in payable for investments purchased 626
Decrease in payable to Advisor (49,899)
Decrease in distribution and administrative servicing
fee payable (1,907)
Decrease dividends payable on securities sold short (17,688)
Decrease in other liabilities (277)
Unrealized depreciation on investments 6,292,012
Net realized loss on investments 46,752,895
-------------
Net cash received from operating activities 16,394,295
-------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions paid* (302,308)
Net proceeds from capital share activity (16,091,987)
-------------
Net cash used for financing activities (16,394,295)
-------------
NET INCREASE (DECREASE) IN CASH 0
CASH AND FOREIGN CURRENCY:
Beginning of year 0
-------------
End of year $ 0
=============
- ----------
* Noncash financing activities not included herein consist of reinvestment
of dividends of $1,970,973.
See notes to financial statements.
138
This page intentionally left blank.
139
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
------------------------------ ----------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 $ 8.09 (0.03)(x) (1.98) (2.01) -- --
Year ended 7/31/08 $ 13.42 (0.06)(x) (0.77) (0.83) -- (4.50)
Year ended 7/31/07 $ 14.10 (0.08)(x) 2.64 2.56 -- (3.24)
Year ended 7/31/06 $ 15.58 (0.11)(x) 0.50 0.39 -- (1.87)
Year ended 7/31/05 $ 15.48 (0.10)(x) 3.07 2.97 -- (2.87)
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS A SHARES
Year ended 7/31/09 $ 7.54 (0.04)(x) (1.84) (1.88) -- --
Year ended 7/31/08 $ 12.84 (0.08)(x) (0.72) (0.80) -- (4.50)
Year ended 7/31/07 $ 13.65 (0.11)(x) 2.54 2.43 -- (3.24)
Year ended 7/31/06 $ 15.17 (0.14)(x) 0.49 0.35 -- (1.87)
Year ended 7/31/05 $ 15.18 (0.14)(x) 3.00 2.86 -- (2.87)
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS B SHARES
Year ended 7/31/09 $ 6.92 (0.07)(x) (1.70) (1.77) -- --
Year ended 7/31/08 $ 12.21 (0.14)(x) (0.65) (0.79) -- (4.50)
Year ended 7/31/07 $ 13.21 (0.20)(x) 2.44 2.24 -- (3.24)
Year ended 7/31/06 $ 14.85 (0.25)(x) 0.48 0.23 -- (1.87)
Year ended 7/31/05 $ 15.02 (0.24)(x) 2.94 2.70 -- (2.87)
- ------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS C SHARES
Year ended 7/31/09 $ 6.93 (0.07)(x) (1.70) (1.77) -- --
Year ended 7/31/08 $ 12.23 (0.14)(x) (0.66) (0.80) -- (4.50)
Year ended 7/31/07 $ 13.23 (0.20)(x) 2.44 2.24 -- (3.24)
Year ended 7/31/06 $ 14.86 (0.25)(x) 0.49 0.24 -- (1.87)
Year ended 7/31/05 $ 15.03 (0.24)(x) 2.94 2.70 -- (2.87)
- ------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 $ 12.03 (0.01)(x) (3.27) (3.28) -- (1.41)
Year ended 7/31/08 $ 15.70 (0.05)(x) (1.43) (1.48) -- (2.19)
Year ended 7/31/07 $ 16.55 (0.07)(x)@ 2.72 2.65 -- (3.50)
Year ended 7/31/06 $ 16.03 (0.04)(x) 0.77 0.73 (0.02) (0.19)
Year ended 7/31/05 $ 12.96 --^ 3.07 3.07 -- --
- ------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS A SHARES
Year ended 7/31/09 $ 11.56 (0.03)(x) (3.16) (3.19) -- (1.41)
Year ended 7/31/08 $ 15.20 (0.08)(x) (1.37) (1.45) -- (2.19)
Year ended 7/31/07 $ 16.17 (0.11)(x)@ 2.64 2.53 -- (3.50)
Year ended 7/31/06 $ 15.69 (0.08)(x) 0.76 0.68 (0.01) (0.19)
Year ended 7/31/05 $ 12.72 (0.05) 3.02 2.97 -- --
- ------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS B SHARES
Year ended 7/31/09 $ 10.68 (0.07)(x) (2.96) (3.03) -- (1.41)
Year ended 7/31/08 $ 14.31 (0.17)(x) (1.27) (1.44) -- (2.19)
Year ended 7/31/07 $ 15.50 (0.21)(x)@ 2.52 2.31 -- (3.50)
Year ended 7/31/06 $ 15.16 (0.20)(x) 0.73 0.53 -- (0.19)
Year ended 7/31/05 $ 12.38 (0.15) 2.93 2.78 -- --
- ------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS C SHARES
Year ended 7/31/09 $ 10.13 (0.07)(x) (2.83) (2.90) -- (1.41)
Year ended 7/31/08 $ 13.65 (0.16)(x) (1.17) (1.33) -- (2.19)
Year ended 7/31/07 $ 14.94 (0.20)(x)@ 2.41 2.21 -- (3.50)
Year ended 7/31/06 $ 14.61 (0.19)(x) 0.71 0.52 -- (0.19)
Year ended 7/31/05 $ 11.94 (0.16) 2.83 2.67 -- --
- ------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
140
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -------------------------------------------------------------------------------------------
SMALL CAP GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 -- $ 6.08 (24.85)%
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%
- -------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS A SHARES
Year ended 7/31/09 -- $ 5.66 (24.93)%
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%
- -------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS B SHARES
Year ended 7/31/09 -- $ 5.15 (25.58)%
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%
- -------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS C SHARES
Year ended 7/31/09 -- $ 5.16 (25.54)%
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%
- -------------------------------------------------------------------------------------------
MID CAP GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 (1.41) $ 7.34 (23.93)%
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%
- -------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS A SHARES
Year ended 7/31/09 (1.41) $ 6.96 (24.18)%
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%
- -------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS B SHARES
Year ended 7/31/09 (1.41) $ 6.24 (24.72)%
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%
- -------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS C SHARES
Year ended 7/31/09 (1.41) $ 5.82 (24.82)%
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%
- -------------------------------------------------------------------------------------------
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 7/31/09 $ 43,273 1.25% 1.01% (0.48)% 81%
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%
- ---------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS A SHARES
Year ended 7/31/09 $ 6,630 1.50% 1.26% (0.73)% 81%
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%
- ---------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS B SHARES
Year ended 7/31/09 $ 549 2.25% 2.01% (1.48)% 81%
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%
- ---------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH CLASS C SHARES
Year ended 7/31/09 $ 234 2.26% 2.01% (1.49)% 81%
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%
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 $ 81,725 1.17% 1.01% (0.15)% 47%
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%
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS A SHARES
Year ended 7/31/09 $ 11,989 1.42% 1.24% (0.38)% 47%
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%
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS B SHARES
Year ended 7/31/09 $ 1,883 2.17% 2.00% (1.13)% 47%
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%
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH CLASS C SHARES
Year ended 7/31/09 $ 376 2.17% 2.00% (1.13)% 47%
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%
- ---------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
141
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ---------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 $ 16.57 0.07(x) (3.66) (3.59) (0.04) (0.50)
Year ended 7/31/08 $ 18.52 0.04(x) 0.72 0.76 (0.04) (2.67)
Year ended 7/31/07 $ 15.67 0.11(x)@ 3.07 3.18 (0.08) (0.25)
Year ended 7/31/06 $ 16.34 (0.03)(x) (0.64) (0.67) -- --
Year ended 7/31/05 $ 14.61 0.03 1.74 1.77 (0.04) --
- ---------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH CLASS A SHARES
Year ended 7/31/09 $ 16.14 0.04(x) (3.56) (3.52) (0.03) (0.50)
Year ended 7/31/08 $ 18.12 (0.01)(x) 0.71 0.70 (0.01) (2.67)
Year ended 7/31/07 $ 15.36 0.06(x)@ 3.01 3.07 (0.06) (0.25)
Year ended 7/31/06 $ 16.05 (0.07)(x) (0.62) (0.69) -- --
Year ended 7/31/05 $ 14.38 (0.02) 1.72 1.70 (0.03) --
- ---------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH CLASS B SHARES
Year ended 7/31/09 $ 15.19 (0.04)(x) (3.38) (3.42) -- (0.50)
Year ended 7/31/08 $ 17.30 (0.13)(x) 0.69 0.56 -- (2.67)
Year ended 7/31/07 $ 14.74 (0.06)(x)@ 2.88 2.82 (0.01) (0.25)
Year ended 7/31/06 $ 15.52 (0.18)(x) (0.60) (0.78) -- --
Year ended 7/31/05 $ 13.99 (0.14) 1.67 1.53 --^ --
- ---------------------------------------------------------------------------------------------------------------------
QUALITY GROWTH CLASS C SHARES
Year ended 7/31/09 $ 14.72 (0.04)(x) (3.27) (3.31) -- (0.50)
Year ended 7/31/08 $ 16.85 (0.12)(x) 0.66 0.54 -- (2.67)
Year ended 7/31/07 $ 14.36 (0.06)(x)@ 2.81 2.75 (0.01) (0.25)
Year ended 7/31/06 $ 15.12 (0.18)(x) (0.58) (0.76) -- --
Year ended 7/31/05 $ 13.63 (0.15) 1.64 1.49 --^ --
- ---------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 $ 23.76 0.32(x) (5.34) (5.02) (0.38) --
Year ended 7/31/08 $ 25.50 0.34(x) (1.77) (1.43) (0.31) --
Year ended 7/31/07 $ 22.56 0.57(x)@ 2.85 3.42 (0.48) --
Year ended 7/31/06 $ 21.71 0.28(x) 0.83 1.11 (0.26) --
Year ended 7/31/05 $ 19.10 (0.15)(x) 2.76 2.61 -- --
- ---------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS A SHARES
Year ended 7/31/09 $ 23.35 0.26(x) (5.24) (4.98) (0.34) --
Year ended 7/31/08 $ 25.07 0.27(x) (1.74) (1.47) (0.25) --
Year ended 7/31/07 $ 22.18 0.49(x)@ 2.82 3.31 (0.42) --
Year ended 7/31/06 $ 21.34 0.23(x) 0.85 1.08 (0.24) --
Year ended 7/31/05 $ 18.82 (0.19)(x) 2.71 2.52 -- --
- ---------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS B SHARES
Year ended 7/31/09 $ 22.57 0.14(x) (5.08) (4.94) (0.21) --
Year ended 7/31/08 $ 24.31 0.08(x) (1.67) (1.59) (0.15) --
Year ended 7/31/07 $ 21.53 0.31(x)@ 2.71 3.02 (0.24) --
Year ended 7/31/06 $ 20.83 0.06(x) 0.80 0.86 (0.16) --
Year ended 7/31/05 $ 18.51 (0.33)(x) 2.65 2.32 -- --
- ---------------------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS C SHARES
Year ended 7/31/09 $ 21.92 0.12(x) (4.92) (4.80) (0.23) --
Year ended 7/31/08 $ 23.67 0.08(x) (1.68) (1.60) (0.15) --
Year ended 7/31/07 $ 20.97 0.29(x)@ 2.66 2.95 (0.25) --
Year ended 7/31/06 $ 20.27 0.07(x) 0.78 0.85 (0.15) --
Year ended 7/31/05 $ 18.01 (0.32)(x) 2.58 2.26 -- --
- ---------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
142
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ----------------------------------------------------------------------------------------
QUALITY GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 (0.54) $ 12.44 (21.13)%
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%
- ----------------------------------------------------------------------------------------
QUALITY GROWTH CLASS A SHARES
Year ended 7/31/09 (0.53) $ 12.09 (21.29)%
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%
- ----------------------------------------------------------------------------------------
QUALITY GROWTH CLASS B SHARES
Year ended 7/31/09 (0.50) $ 11.27 (21.96)%
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%
- ----------------------------------------------------------------------------------------
QUALITY GROWTH CLASS C SHARES
Year ended 7/31/09 (0.50) $ 10.91 (21.97)%
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%
- ----------------------------------------------------------------------------------------
DIVIDEND GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 (0.38) $ 18.36 (21.12)%
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%
- ----------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS A SHARES
Year ended 7/31/09 (0.34) $ 18.03 (21.37)%
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%
- ----------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS B SHARES
Year ended 7/31/09 (0.21) $ 17.42 (21.93)%
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%
- ----------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS C SHARES
Year ended 7/31/09 (0.23) $ 16.89 (21.93)%
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%
- ----------------------------------------------------------------------------------------
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 7/31/09 $ 237,049 1.13% 1.06% 0.62% 31%
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%
- -------------------------------------------------------------------------------------------------------
QUALITY GROWTH CLASS A SHARES
Year ended 7/31/09 $ 61,219 1.38% 1.31% 0.37% 31%
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%
- -------------------------------------------------------------------------------------------------------
QUALITY GROWTH CLASS B SHARES
Year ended 7/31/09 $ 6,185 2.12% 2.06% (0.37)% 31%
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%
- -------------------------------------------------------------------------------------------------------
QUALITY GROWTH CLASS C SHARES
Year ended 7/31/09 $ 1,631 2.13% 2.06% (0.38)% 31%
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%
- -------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH INSTITUTIONAL SHARES
Year ended 7/31/09 $ 6,977 2.22% 0.73% 1.76% 102%
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%
- -------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS A SHARES
Year ended 7/31/09 $ 2,078 2.50% 0.98% 1.49% 102%
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%
- -------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS B SHARES
Year ended 7/31/09 $ 113 3.21% 1.73% 0.79% 102%
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%
- -------------------------------------------------------------------------------------------------------
DIVIDEND GROWTH CLASS C SHARES
Year ended 7/31/09 $ 156 3.26% 1.73% 0.75% 102%
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%
- -------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
143
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
------------------------------ ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ----------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 $ 3.75 0.02(x) (0.51) (0.49) (0.01) (0.01)
Year ended 7/31/08 $ 7.02 0.02(x) (0.78) (0.76) (0.01) (2.50)
Year ended 7/31/07 $ 8.05 0.01(x) 0.93 0.94 (0.05) (1.92)
Year ended 7/31/06 $ 11.00 0.02(x) 0.17 0.19 (0.01) (3.13)
Year ended 7/31/05 $ 10.32 (0.01)(x) 1.41 1.40 -- (0.72)
- ----------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 3.49 0.01(x) (0.47) (0.46) (0.01) (0.01)
Year ended 7/31/08 $ 6.73 0.01(x) (0.75) (0.74) -- (2.50)
Year ended 7/31/07 $ 7.80 (0.01)(x) 0.90 0.89 (0.04) (1.92)
Year ended 7/31/06 $ 10.78 --^(x) 0.15 0.15 --^ (3.13)
Year ended 7/31/05 $ 10.14 (0.03)(x) 1.39 1.36 -- (0.72)
- ----------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 3.16 (0.01)(x) (0.43) (0.44) -- (0.01)
Year ended 7/31/08 $ 6.39 (0.02)(x) (0.71) (0.73) -- (2.50)
Year ended 7/31/07 $ 7.52 (0.06)(x) 0.86 0.80 (0.01) (1.92)
Year ended 7/31/06 $ 10.56 (0.06)(x) 0.15 0.09 -- (3.13)
Year ended 7/31/05 $ 9.96 (0.04)(x) 1.36 1.32 -- (0.72)
- ----------------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 3.17 (0.01)(x) (0.43) (0.44) -- (0.01)
Year ended 7/31/08 $ 6.39 (0.02)(x) (0.70) (0.72) -- (2.50)
Year ended 7/31/07 $ 7.52 (0.05)(x) 0.84 0.79 -- (1.92)
Year ended 7/31/06 $ 10.56 (0.06)(x) 0.15 0.09 -- (3.13)
Year ended 7/31/05 $ 9.96 (0.04)(x) 1.36 1.32 -- (0.72)
- ----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 $ 17.04 0.21(x) (3.55) (3.34) (0.22) --
Year ended 7/31/08 $ 20.29 0.19(x) (0.91) (0.72) (0.16) (2.37)
Year ended 7/31/07 $ 20.89 0.13(x) 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)(x) 4.51 4.47 -- (1.66)
- ----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 16.84 0.18(x) (3.51) (3.33) (0.18) --
Year ended 7/31/08 $ 20.09 0.14(x) (0.90) (0.76) (0.12) (2.37)
Year ended 7/31/07 $ 20.74 0.08(x) 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)(x) 4.49 4.39 -- (1.66)
- ----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 16.11 0.08(x) (3.35) (3.27) (0.07) --
Year ended 7/31/08 $ 19.34 --^(x) (0.86) (0.86) -- (2.37)
Year ended 7/31/07 $ 20.18 (0.08)(x) 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)(x) 4.43 4.19 -- (1.66)
- ----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 16.07 0.08(x) (3.33) (3.25) (0.09) --
Year ended 7/31/08 $ 19.31 --^(x) (0.87) (0.87) -- (2.37)
Year ended 7/31/07 $ 20.14 (0.08)(x) 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)(x) 4.41 4.17 -- (1.66)
- ----------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
144
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------------
MICRO CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 (0.02) $ 3.24 (12.86)%
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%
- ---------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS A SHARES
Year ended 7/31/09 (0.02) $ 3.01 (13.18)%
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%
- ---------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS B SHARES
Year ended 7/31/09 (0.01) $ 2.71 (13.80)%
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%
- ---------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS C SHARES
Year ended 7/31/09 (0.01) $ 2.72 (13.75)%
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%
- ---------------------------------------------------------------------------------------
SMALL CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 (0.22) $ 13.48 (19.32)%
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%
- ---------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS A SHARES
Year ended 7/31/09 (0.18) $ 13.33 (19.56)%
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%
- ---------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS B SHARES
Year ended 7/31/09 (0.07) $ 12.77 (20.16)%
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%
- ---------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS C SHARES
Year ended 7/31/09 (0.09) $ 12.73 (20.17)%
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%
- ---------------------------------------------------------------------------------------
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 7/31/09 $ 17,394 1.89% 1.35% 0.64% 46%
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%
- ----------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 7,497 2.14% 1.60% 0.40% 46%
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%
- ----------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 1,937 2.89% 2.35% (0.34)% 46%
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%
- ----------------------------------------------------------------------------------------------------------------
MICRO CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 1,446 2.88% 2.35% (0.35)% 46%
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%
- ----------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 $ 65,235 1.30% 1.20% 1.68% 68%
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%
- ----------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 1,275 1.55% 1.45% 1.42% 68%
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%
- ----------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 572 2.30% 2.20% 0.68% 68%
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%
- ----------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 399 2.30% 2.20% 0.68% 68%
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%
- ----------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
145
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
------------------------------ ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
ALL CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 $ 17.98 0.24(x) (4.42) (4.18) (0.27) (1.01)
Year ended 7/31/08 $ 25.65 0.31(x) (4.14) (3.83) (0.28) (3.56)
Year ended 7/31/07 $ 25.68 0.37(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
ALL CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 17.69 0.21(x) (4.35) (4.14) (0.24) (1.01)
Year ended 7/31/08 $ 25.30 0.25(x) (4.07) (3.82) (0.23) (3.56)
Year ended 7/31/07 $ 25.39 0.30(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
ALL CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 16.90 0.11(x) (4.18) (4.07) (0.16) (1.01)
Year ended 7/31/08 $ 24.35 0.09(x) (3.89) (3.80) (0.09) (3.56)
Year ended 7/31/07 $ 24.61 0.10(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
ALL CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 16.86 0.11(x) (4.16) (4.05) (0.17) (1.01)
Year ended 7/31/08 $ 24.32 0.09(x) (3.89) (3.80) (0.10) (3.56)
Year ended 7/31/07 $ 24.59 0.11(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 $ 11.48 0.22(x) (2.74) (2.52) (0.25) (0.16)
Year ended 7/31/08 $ 14.39 0.25(x) (2.03) (1.78) (0.23) (0.90)
Year ended 7/31/07 $ 14.72 0.22(x)@ 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)
- ----------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 11.44 0.19(x) (2.72) (2.53) (0.23) (0.16)
Year ended 7/31/08 $ 14.35 0.21(x) (2.03) (1.82) (0.19) (0.90)
Year ended 7/31/07 $ 14.69 0.18(x)@ 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)
- ----------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 11.57 0.14(x) (2.76) (2.62) (0.17) (0.16)
Year ended 7/31/08 $ 14.49 0.12(x) (2.05) (1.93) (0.09) (0.90)
Year ended 7/31/07 $ 14.81 0.08(x)@ 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)
- ----------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 11.32 0.13(x) (2.70) (2.57) (0.17) (0.16)
Year ended 7/31/08 $ 14.21 0.11(x) (2.01) (1.90) (0.09) (0.90)
Year ended 7/31/07 $ 14.56 0.08(x)@ 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)
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
146
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ---------------------------------------------------------------------------------------
ALL CAP VALUE INSTITUTIONAL SHARES
Year ended 7/31/09 (1.28) $ 12.52 (22.15)%
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%
- ---------------------------------------------------------------------------------------
ALL CAP VALUE CLASS A SHARES
Year ended 7/31/09 (1.25) $ 12.30 (22.29)%
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%
- ---------------------------------------------------------------------------------------
ALL CAP VALUE CLASS B SHARES
Year ended 7/31/09 (1.17) $ 11.66 (22.98)%
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%
- ---------------------------------------------------------------------------------------
ALL CAP VALUE CLASS C SHARES
Year ended 7/31/09 (1.18) $ 11.63 (22.97)%
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%
- ---------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE INSTITUTIONAL
SHARES
Year ended 7/31/09 (0.41) $ 8.55 (21.78)%
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%
- ---------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS A SHARES
Year ended 7/31/09 (0.39) $ 8.52 (22.02)%
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%
- ---------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS B SHARES
Year ended 7/31/09 (0.33) $ 8.62 (22.52)%
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%
- ---------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS C SHARES
Year ended 7/31/09 (0.33) $ 8.42 (22.55)%
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%
- ---------------------------------------------------------------------------------------
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 7/31/09 $ 93,858 1.40% 1.16% 2.00% 42%
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%
- ---------------------------------------------------------------------------------------------------------------
ALL CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 33,491 1.65% 1.41% 1.72% 42%
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%
- ---------------------------------------------------------------------------------------------------------------
ALL CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 8,991 2.40% 2.16% 0.99% 42%
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%
- ---------------------------------------------------------------------------------------------------------------
ALL CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 5,102 2.39% 2.16% 0.98% 42%
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%
- ---------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE INSTITUTIONAL
SHARES
Year ended 7/31/09 $ 308,345 1.07% 0.98% 2.58% 58%
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%
- ---------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS A SHARES
Year ended 7/31/09 $ 11,024 1.32% 1.23% 2.32% 58%
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%
- ---------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS B SHARES
Year ended 7/31/09 $ 1,991 2.07% 1.98% 1.61% 58%
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%
- ---------------------------------------------------------------------------------------------------------------
DISCIPLINED LARGE CAP VALUE CLASS C SHARES
Year ended 7/31/09 $ 778 2.07% 1.98% 1.59% 58%
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%
- ---------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
147
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
------------------------------- ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS INSTITUTIONAL SHARES
Year ended 7/31/09 $ 14.66 0.17(x) (5.53) (5.36) (0.25) --
Year ended 7/31/08 $ 16.95 0.14(x) (2.22) (2.08) (0.13) (0.08)
Year ended 7/31/07 $ 15.16 0.17(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS A SHARES
Year ended 7/31/09 $ 14.45 0.15(x) (5.43) (5.28) (0.23) --
Year ended 7/31/08 $ 16.71 0.10(x) (2.20) (2.10) (0.08) (0.08)
Year ended 7/31/07 $ 14.96 0.12(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS B SHARES
Year ended 7/31/09 $ 14.41 0.07(x) (5.44) (5.37) (0.16) --
Year ended 7/31/08 $ 16.69 (0.02)(x) (2.18) (2.20) -- (0.08)
Year ended 7/31/07 $ 14.98 --(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS C SHARES
Year ended 7/31/09 $ 14.41 0.10(x) (5.45) (5.35) (0.15) --
Year ended 7/31/08 $ 16.70 (0.02)(x) (2.19) (2.21) -- (0.08)
Year ended 7/31/07 $ 14.98 --(x) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
148
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS INSTITUTIONAL SHARES
Year ended 7/31/09 (0.25) $ 9.05 (36.73)%
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%
- -----------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS A SHARES
Year ended 7/31/09 (0.23) $ 8.94 (36.73)%
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%
- -----------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS B SHARES
Year ended 7/31/09 (0.16) $ 8.88 (37.43)%
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%
- -----------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS C SHARES
Year ended 7/31/09 (0.15) $ 8.91 (37.34)%
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%
- -----------------------------------------------------------------------------------------------------
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 7/31/09 $ 72,778 2.08%(o)! 1.71%(o)! 1.71% 188%
Year ended 7/31/08 $ 133,506 1.76%(o) 1.51%(o) 0.89% 147%
Year ended 7/31/07 $ 180,126 1.02%(o) 0.92%(o) 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%
- --------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS A SHARES
Year ended 7/31/09 $ 5,648 2.29%(o)! 1.93%(o)! 1.50% 188%
Year ended 7/31/08 $ 12,505 2.01%(o) 1.76%(o) 0.63% 147%
Year ended 7/31/07 $ 18,972 1.27%(o) 1.17%(o) 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%
- --------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS B SHARES
Year ended 7/31/09 $ 347 3.05%(o)! 2.70%(o)! 0.75% 188%
Year ended 7/31/08 $ 723 2.76%(o) 2.51%(o) (0.11)% 147%
Year ended 7/31/07 $ 1,044 2.03%(o) 1.92%(o) (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%
- --------------------------------------------------------------------------------------------------------------------------
STRUCTURED LARGE CAP PLUS CLASS C SHARES
Year ended 7/31/09 $ 22 2.81%(o)! 2.50%(o)! 1.05% 188%
Year ended 7/31/08 $ 75 2.76%(o) 2.51%(o) (0.11)% 147%
Year ended 7/31/07 $ 125 2.03%(o) 1.92%(o) (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%
- --------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
149
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
---------------------------- ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX INSTITUTIONAL SHARES
Year ended 7/31/09 $ 24.05 0.44(x) (5.24) (4.80) (0.49) --
Year ended 7/31/08 $ 27.60 0.52(x) (3.58) (3.06) (0.49) --
Year ended 7/31/07 $ 24.24 0.50(x) 3.35 3.85 (0.49) --
Year ended 7/31/06 $ 23.46 0.42(x) 0.79 1.21 (0.43) --
Year ended 7/31/05 $ 21.01 0.44(x) 2.45 2.89 (0.44) --
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX CLASS A SHARES
Year ended 7/31/09 $ 23.97 0.40(x) (5.22) (4.82) (0.45) --
Year ended 7/31/08 $ 27.51 0.46(x) (3.58) (3.12) (0.42) --
Year ended 7/31/07 $ 24.16 0.43(x) 3.34 3.77 (0.42) --
Year ended 7/31/06 $ 23.38 0.36(x) 0.80 1.16 (0.38) --
Year ended 7/31/05 $ 20.94 0.37(x) 2.46 2.83 (0.39) --
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX CLASS B SHARES
Year ended 7/31/09 $ 23.84 0.26(x) (5.19) (4.93) (0.33) --
Year ended 7/31/08 $ 27.34 0.26(x) (3.56) (3.30) (0.20) --
Year ended 7/31/07 $ 24.01 0.22(x) 3.33 3.55 (0.22) --
Year ended 7/31/06 $ 23.24 0.18(x) 0.79 0.97 (0.20) --
Year ended 7/31/05 $ 20.83 0.20(x) 2.44 2.64 (0.23) --
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX CLASS C SHARES
Year ended 7/31/09 $ 23.86 0.26(x) (5.20) (4.94) (0.33) --
Year ended 7/31/08 $ 27.37 0.26(x) (3.57) (3.31) (0.20) --
Year ended 7/31/07 $ 24.03 0.22(x) 3.34 3.56 (0.22) --
Year ended 7/31/06 $ 23.26 0.18(x) 0.78 0.96 (0.19) --
Year ended 7/31/05 $ 20.84 0.20(x) 2.44 2.64 (0.22) --
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX SELECT SHARES
Year ended 7/31/09 $ 24.05 0.42(x) (5.23) (4.81) (0.48) --
Year ended 7/31/08 $ 27.59 0.50(x) (3.58) (3.08) (0.46) --
Year ended 7/31/07 $ 24.23 0.47(x) 3.35 3.82 (0.46) --
Year ended 7/31/06 $ 23.45 0.40(x) 0.80 1.20 (0.42) --
Year ended 7/31/05 $ 21.00 0.41(x) 2.47 2.88 (0.43) --
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX PREFERRED SHARES
Year ended 7/31/09 $ 24.05 0.42(x) (5.25) (4.83) (0.46) --
Year ended 7/31/08 $ 27.59 0.48(x) (3.58) (3.10) (0.44) --
Year ended 7/31/07 $ 24.23 0.45(x) 3.37 3.82 (0.46) --
Year ended 7/31/06 $ 23.45 0.39(x) 0.79 1.18 (0.40) --
Year ended 7/31/05 $ 21.01 0.43(x) 2.41 2.84 (0.40) --
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX TRUST SHARES
Year ended 7/31/09 $ 24.05 0.41(x) (5.25) (4.84) (0.45) --
Year ended 7/31/08 $ 27.60 0.46(x) (3.60) (3.14) (0.41) --
Year ended 7/31/07 $ 24.23 0.43(x) 3.36 3.79 (0.42) --
Year ended 7/31/06 $ 23.45 0.36(x) 0.79 1.15 (0.37) --
Year ended 7/31/05 $ 21.01 0.37(x) 2.46 2.83 (0.39) --
- -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
150
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -----------------------------------------------------------------------------------------------
EQUITY INDEX INSTITUTIONAL SHARES
Year ended 7/31/09 (0.49) $ 18.76 (19.89)%
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%
- -----------------------------------------------------------------------------------------------
EQUITY INDEX CLASS A SHARES
Year ended 7/31/09 (0.45) $ 18.70 (20.05)%
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%
- -----------------------------------------------------------------------------------------------
EQUITY INDEX CLASS B SHARES
Year ended 7/31/09 (0.33) $ 18.58 (20.68)%
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%
- -----------------------------------------------------------------------------------------------
EQUITY INDEX CLASS C SHARES
Year ended 7/31/09 (0.33) $ 18.59 (20.69)%
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%
- -----------------------------------------------------------------------------------------------
EQUITY INDEX SELECT SHARES
Year ended 7/31/09 (0.48) $ 18.76 (19.95)%
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%
- -----------------------------------------------------------------------------------------------
EQUITY INDEX PREFERRED SHARES
Year ended 7/31/09 (0.46) $ 18.76 (20.04)%
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%
- -----------------------------------------------------------------------------------------------
EQUITY INDEX TRUST SHARES
Year ended 7/31/09 (0.45) $ 18.76 (20.08)%
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%
- -----------------------------------------------------------------------------------------------
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 7/31/09 $ 141,566 0.62% 0.19% 2.47% 7%
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%
- --------------------------------------------------------------------------------------------------------
EQUITY INDEX CLASS A SHARES
Year ended 7/31/09 $ 41,527 0.87% 0.44% 2.22% 7%
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%
- --------------------------------------------------------------------------------------------------------
EQUITY INDEX CLASS B SHARES
Year ended 7/31/09 $ 1,989 1.62% 1.19% 1.49% 7%
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%
- --------------------------------------------------------------------------------------------------------
EQUITY INDEX CLASS C SHARES
Year ended 7/31/09 $ 1,452 1.62% 1.19% 1.46% 7%
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%
- --------------------------------------------------------------------------------------------------------
EQUITY INDEX SELECT SHARES
Year ended 7/31/09 $ 9,732 0.70% 0.27% 2.38% 7%
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%
- --------------------------------------------------------------------------------------------------------
EQUITY INDEX PREFERRED SHARES
Year ended 7/31/09 $ 43,098 0.77% 0.34% 2.33% 7%
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%
- --------------------------------------------------------------------------------------------------------
EQUITY INDEX TRUST SHARES
Year ended 7/31/09 $ 27,411 0.87% 0.44% 2.24% 7%
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%
- --------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
151
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
------------------------------ ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
Year ended 7/31/09 $ 12.24 0.22(x) (3.59) (3.37) (0.19) (1.43)
Year ended 7/31/08 $ 15.55 0.45(x) (2.30) (1.85) (0.46) (1.00)
Year ended 7/31/07 $ 12.83 0.18(x)@ 2.92 3.10 (0.11) (0.27)
Year ended 7/31/06 $ 10.79 0.15(x) 2.37 2.52 (0.20) (0.28)
Year ended 7/31/05 $ 9.32 0.13 1.54 1.67 (0.20) --
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/09 $ 12.23 0.20(x) (3.59) (3.39) (0.17) (1.43)
Year ended 7/31/08 $ 15.54 0.40(x) (2.28) (1.88) (0.43) (1.00)
Year ended 7/31/07 $ 12.84 0.15(x)@ 2.92 3.07 (0.10) (0.27)
Year ended 7/31/06 $ 10.80 0.13(x) 2.36 2.49 (0.17) (0.28)
Year ended 7/31/05 $ 9.33 0.10 1.54 1.64 (0.17) --
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
Year ended 7/31/09 $ 11.95 0.14(x) (3.48) (3.34) (0.09) (1.43)
Year ended 7/31/08 $ 15.21 0.29(x) (2.23) (1.94) (0.32) (1.00)
Year ended 7/31/07 $ 12.64 0.04(x)@ 2.86 2.90 (0.06) (0.27)
Year ended 7/31/06 $ 10.66 0.04(x) 2.32 2.36 (0.10) (0.28)
Year ended 7/31/05 $ 9.23 0.02 1.52 1.54 (0.11) --
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/09 $ 11.61 0.14(x) (3.42) (3.28) (0.11) (1.43)
Year ended 7/31/08 $ 14.81 0.30(x) (2.18) (1.88) (0.32) (1.00)
Year ended 7/31/07 $ 12.31 0.02(x)@ 2.81 2.83 (0.06) (0.27)
Year ended 7/31/06 $ 10.39 0.03(x) 2.28 2.31 (0.11) (0.28)
Year ended 7/31/05 $ 8.99 0.02 1.49 1.51 (0.11) --
- --------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME INSTITUTIONAL SHARES
Year ended 7/31/09 $ 9.38 0.57(x) (0.38) 0.19 (0.61) (0.01)
Year ended 7/31/08 $ 11.18 0.55(x) (1.41) (0.85) (0.61) (0.33)
Year ended 7/31/07 $ 11.28 0.55(x) 0.01 0.56 (0.55) (0.11)
Year ended 7/31/06 $ 11.54 0.52(x) (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)
- --------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS A SHARES
Year ended 7/31/09 $ 9.36 0.56(x) (0.39) 0.17 (0.59) (0.01)
Year ended 7/31/08 $ 11.15 0.53(x) (1.41) (0.87) (0.58) (0.33)
Year ended 7/31/07 $ 11.25 0.52(x) 0.02 0.54 (0.52) (0.12)
Year ended 7/31/06 $ 11.51 0.48(x) (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)
- --------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS B SHARES
Year ended 7/31/09 $ 9.36 0.50(x) (0.38) 0.12 (0.54) (0.01)
Year ended 7/31/08 $ 11.15 0.45(x) (1.41) (0.96) (0.50) (0.33)
Year ended 7/31/07 $ 11.25 0.43(x) 0.02 0.45 (0.44) (0.11)
Year ended 7/31/06 $ 11.51 0.40(x) (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)
- --------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS C SHARES
Year ended 7/31/09 $ 9.29 0.49(x) (0.38) 0.11 (0.54) (0.01)
Year ended 7/31/08 $ 11.07 0.45(x) (1.40) (0.95) (0.50) (0.33)
Year ended 7/31/07 $ 11.17 0.43(x) 0.02 0.45 (0.44) (0.11)
Year ended 7/31/06 $ 11.43 0.40(x) (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)
- --------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
152
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- -------------------------------------------------------------------------------------
INTERNATIONAL EQUITY INSTITUTIONAL SHARES
Year ended 7/31/09 (1.62) $ 7.25 (24.36)%
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%
- -------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/09 (1.60) $ 7.24 (24.64)%
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%
- -------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
Year ended 7/31/09 (1.52) $ 7.09 (25.00)%
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%
- -------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/09 (1.54) $ 6.79 (25.18)%
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%
- -------------------------------------------------------------------------------------
STRATEGIC INCOME INSTITUTIONAL SHARES
Year ended 7/31/09 (0.62) $ 8.95 3.38%
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%
- -------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS A SHARES
Year ended 7/31/09 (0.60) $ 8.93 3.02%
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%
- -------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS B SHARES
Year ended 7/31/09 (0.55) $ 8.93 2.26%
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%
- -------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS C SHARES
Year ended 7/31/09 (0.55) $ 8.85 2.29%
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%
- -------------------------------------------------------------------------------------
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 7/31/09 $ 233,968 1.34% 1.22%~ 3.01% 104%
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%
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS A SHARES
Year ended 7/31/09 $ 11,754 1.59% 1.47%~ 2.74% 104%
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%
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS B SHARES
Year ended 7/31/09 $ 978 2.34% 2.22%~ 1.99% 104%
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%
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY CLASS C SHARES
Year ended 7/31/09 $ 378 2.34% 2.22%~ 2.01% 104%
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%
- ----------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME INSTITUTIONAL SHARES
Year ended 7/31/09 $ 59,493 1.40% 0.93% 7.29% 32%
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%
- ----------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS A SHARES
Year ended 7/31/09 $ 13,406 1.65% 1.18% 7.05% 32%
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%
- ----------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS B SHARES
Year ended 7/31/09 $ 767 2.40% 1.93% 6.31% 32%
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%
- ----------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME CLASS C SHARES
Year ended 7/31/09 $ 8,468 2.40% 1.93% 6.32% 32%
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%
- ----------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
153
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
---------------------------- ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 13.57 0.20#(x) (3.55)# (3.35) (0.24) (1.25)
Year ended 7/31/08 $ 16.58 0.20#(x) (1.56)# (1.36) (0.49) (1.16)
Year ended 7/31/07 $ 14.58 0.14#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 13.49 0.17#(x) (3.52)# (3.35) (0.22) (1.25)
Year ended 7/31/08 $ 16.51 0.18#(x) (1.58)# (1.40) (0.46) (1.16)
Year ended 7/31/07 $ 14.53 0.10#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 13.12 0.11#(x) (3.44)# (3.33) (0.16) (1.25)
Year ended 7/31/08 $ 16.11 0.06#(x) (1.52)# (1.46) (0.37) (1.16)
Year ended 7/31/07 $ 14.24 (0.02)#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 13.11 0.11#(x) (3.44)# (3.33) (0.16) (1.25)
Year ended 7/31/08 $ 16.11 0.05#(x) (1.52)# (1.47) (0.37) (1.16)
Year ended 7/31/07 $ 14.24 (0.04)#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 12.85 0.28#(x) (2.71)# (2.43) (0.37) (0.91)
Year ended 7/31/08 $ 15.44 0.29#(x) (1.32)# (1.03) (0.45) (1.11)
Year ended 7/31/07 $ 13.98 0.25#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 12.83 0.26#(x) (2.72)# (2.46) (0.34) (0.91)
Year ended 7/31/08 $ 15.42 0.27#(x) (1.34)# (1.07) (0.41) (1.11)
Year ended 7/31/07 $ 13.96 0.21#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 12.72 0.18#(x) (2.69)# (2.51) (0.28) (0.91)
Year ended 7/31/08 $ 15.34 0.17#(x) (1.33)# (1.16) (0.35) (1.11)
Year ended 7/31/07 $ 13.90 0.10#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 12.71 0.18#(x) (2.67)# (2.49) (0.28) (0.91)
Year ended 7/31/08 $ 15.34 0.19#(x) (1.36)# (1.17) (0.35) (1.11)
Year ended 7/31/07 $ 13.89 0.10#(x) 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)
- -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
154
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ----------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 (1.49) $ 8.73 (22.95)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS A SHARES
Year ended 7/31/09 (1.47) $ 8.67 (23.12)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS B SHARES
Year ended 7/31/09 (1.41) $ 8.38 (23.68)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS C SHARES
Year ended 7/31/09 (1.41) $ 8.37 (23.70)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 (1.28) $ 9.14 (17.50)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS A SHARES
Year ended 7/31/09 (1.25) $ 9.12 (17.73)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS B SHARES
Year ended 7/31/09 (1.19) $ 9.02 (18.37)%
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%
- ----------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS C SHARES
Year ended 7/31/09 (1.19) $ 9.03 (18.28)%
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%
- ----------------------------------------------------------------------------------------------
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 7/31/09 $ 76,770 0.56% 0.08% 2.21% 9%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 28,126 0.81% 0.33% 1.95% 9%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 7,893 1.56% 1.08% 1.24% 9%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL AGGRESSIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 1,342 1.55% 1.08% 1.24% 9%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 110,522 0.54% 0.08% 3.06% 8%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 64,959 0.79% 0.33% 2.77% 8%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 27,726 1.54% 1.08% 2.03% 8%
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%
- -----------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY AGGRESSIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 3,375 1.54% 1.08% 1.99% 8%
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%
- -----------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
155
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- -------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 11.43 0.34#(x) (1.81)# (1.47) (0.42) (0.53)
Year ended 7/31/08 $ 13.34 0.36#(x) (1.06)# (0.70) (0.45) (0.76)
Year ended 7/31/07 $ 12.43 0.33#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS A SHARES
Year ended 7/31/09 $ 11.42 0.32#(x) (1.81)# (1.49) (0.40) (0.53)
Year ended 7/31/08 $ 13.32 0.33#(x) (1.06)# (0.73) (0.41) (0.76)
Year ended 7/31/07 $ 12.41 0.29#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS B SHARES
Year ended 7/31/09 $ 11.37 0.25#(x) (1.80)# (1.55) (0.34) (0.53)
Year ended 7/31/08 $ 13.25 0.24#(x) (1.05)# (0.81) (0.31) (0.76)
Year ended 7/31/07 $ 12.35 0.19#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS C SHARES
Year ended 7/31/09 $ 11.37 0.25#(x) (1.80)# (1.55) (0.34) (0.53)
Year ended 7/31/08 $ 13.26 0.24#(x) (1.06)# (0.82) (0.31) (0.76)
Year ended 7/31/07 $ 12.36 0.19#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 10.34 0.34#(x) (1.40)# (1.06) (0.41) (0.52)
Year ended 7/31/08 $ 11.95 0.37#(x) (0.90)# (0.53) (0.42) (0.66)
Year ended 7/31/07 $ 11.36 0.34#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 10.32 0.32#(x) (1.40)# (1.08) (0.39) (0.52)
Year ended 7/31/08 $ 11.93 0.33#(x) (0.89)# (0.56) (0.39) (0.66)
Year ended 7/31/07 $ 11.35 0.31#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 10.29 0.25#(x) (1.38)# (1.13) (0.34) (0.52)
Year ended 7/31/08 $ 11.88 0.25#(x) (0.89)# (0.64) (0.29) (0.66)
Year ended 7/31/07 $ 11.30 0.22#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 10.30 0.26#(x) (1.39)# (1.13) (0.34) (0.52)
Year ended 7/31/08 $ 11.89 0.25#(x) (0.89)# (0.64) (0.29) (0.66)
Year ended 7/31/07 $ 11.32 0.22#(x) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
156
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 (0.95) $ 9.01 (11.88)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS A SHARES
Year ended 7/31/09 (0.93) $ 9.00 (12.09)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS B SHARES
Year ended 7/31/09 (0.87) $ 8.95 (12.76)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS C SHARES
Year ended 7/31/09 (0.87) $ 8.95 (12.77)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 (0.93) $ 8.35 (9.12)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS A SHARES
Year ended 7/31/09 (0.91) $ 8.33 (9.36)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS B SHARES
Year ended 7/31/09 (0.86) $ 8.30 (10.03)%
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%
- ------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS C SHARES
Year ended 7/31/09 (0.86) $ 8.31 (10.00)%
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%
- ------------------------------------------------------------------------------------------------
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 7/31/09 $ 258,159 0.44% 0.08% 3.80% 7%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS A SHARES
Year ended 7/31/09 $ 48,590 0.69% 0.33% 3.53% 7%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS B SHARES
Year ended 7/31/09 $ 20,489 1.44% 1.08% 2.78% 7%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATE(SM) CLASS C SHARES
Year ended 7/31/09 $ 2,709 1.44% 1.08% 2.78% 7%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 35,581 0.59% 0.08% 4.11% 8%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 16,941 0.84% 0.33% 3.81% 8%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 8,292 1.59% 1.08% 3.06% 8%
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%
- ----------------------------------------------------------------------------------------------------------------------------
LIFEMODEL MODERATELY CONSERVATIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 1,264 1.59% 1.08% 3.09% 8%
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%
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
157
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
------------------------------ ---------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENTS FROM INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 $ 9.89 0.41#(x) (0.92)# (0.51) (0.46) (0.17)
Year ended 7/31/08 $ 10.99 0.43#(x) (0.80)# (0.37) (0.43) (0.30)
Year ended 7/31/07 $ 10.72 0.41#(x) 0.49# 0.90 (0.41) (0.22)
Year ended 7/31/06 $ 10.92 0.40#(x) (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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 9.87 0.39#(x) (0.91)# (0.52) (0.44) (0.17)
Year ended 7/31/08 $ 10.97 0.39#(x) (0.79)# (0.40) (0.40) (0.30)
Year ended 7/31/07 $ 10.70 0.38#(x) 0.49# 0.87 (0.38) (0.22)
Year ended 7/31/06 $ 10.90 0.37#(x) (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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 9.83 0.32#(x) (0.90)# (0.58) (0.38) (0.17)
Year ended 7/31/08 $ 10.95 0.31#(x) (0.80)# (0.49) (0.33) (0.30)
Year ended 7/31/07 $ 10.67 0.29#(x) 0.50# 0.79 (0.30) (0.21)
Year ended 7/31/06 $ 10.87 0.29#(x) (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)
- ------------------------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 9.84 0.32#(x) (0.90)# (0.58) (0.38) (0.17)
Year ended 7/31/08 $ 10.95 0.31#(x) (0.79)# (0.48) (0.33) (0.30)
Year ended 7/31/07 $ 10.67 0.29#(x) 0.51# 0.80 (0.30) (0.22)
Year ended 7/31/06 $ 10.88 0.29#(x) (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)
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND INSTITUTIONAL SHARES
Year ended 7/31/09 $ 9.14 0.78(x) (0.41) 0.37 (0.79) --
Year ended 7/31/08 $ 9.57 0.73(x) (0.44) 0.29 (0.72) --
Year ended 7/31/07 $ 9.74 0.71(x) (0.14) 0.57 (0.71) (0.03)
11/29/05 (c) to 7/31/06 $ 10.00 0.44 (0.28) 0.16 (0.42) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS A SHARES
Year ended 7/31/09 $ 9.12 0.74(x) (0.40) 0.34 (0.77) --
Year ended 7/31/08 $ 9.57 0.69(x) (0.46) 0.23 (0.68) --
Year ended 7/31/07 $ 9.74 0.68(x) (0.13) 0.55 (0.69) (0.03)
11/29/05 (c) to 7/31/06 $ 10.00 0.41 (0.27) 0.14 (0.40) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS B SHARES
Year ended 7/31/09 $ 9.13 0.70(x) (0.41) 0.29 (0.71) --
Year ended 7/31/08 $ 9.56 0.64(x) (0.45) 0.19 (0.62) --
Year ended 7/31/07 $ 9.73 0.61(x) (0.13) 0.48 (0.62) (0.03)
11/29/05 (c) to 7/31/06 $ 10.00 0.33 (0.24) 0.09 (0.36) --
- ------------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS C SHARES
Year ended 7/31/09 $ 9.13 0.70(x) (0.41) 0.29 (0.71) --
Year ended 7/31/08 $ 9.57 0.64(x) (0.45) 0.19 (0.63) --
Year ended 7/31/07 $ 9.74 0.60(x) (0.12) 0.48 (0.62) (0.03)
11/29/05 (c) to 7/31/06 $ 10.00 0.35 (0.25) 0.10 (0.36) --
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
158
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, (EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- ------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) INSTITUTIONAL SHARES
Year ended 7/31/09 (0.63) $ 8.75 (4.64)%
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%
- ------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS A SHARES
Year ended 7/31/09 (0.61) $ 8.74 (4.77)%
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%
- ------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS B SHARES
Year ended 7/31/09 (0.55) $ 8.70 (5.45)%
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%
- ------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS C SHARES
Year ended 7/31/09 (0.55) $ 8.71 (5.45)%
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%
- ------------------------------------------------------------------------------------------
HIGH YIELD BOND INSTITUTIONAL SHARES
Year ended 7/31/09 (0.79) $ 8.72 5.98%
Year ended 7/31/08 (0.72) $ 9.14 2.98%
Year ended 7/31/07 (0.74) $ 9.57 5.85%
11/29/05 (c) to 7/31/06 (0.42) $ 9.74 1.59%*
- ------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS A SHARES
Year ended 7/31/09 (0.77) $ 8.69 5.60%
Year ended 7/31/08 (0.68) $ 9.12 2.38%
Year ended 7/31/07 (0.72) $ 9.57 5.47%
11/29/05 (c) to 7/31/06 (0.40) $ 9.74 1.44%*
- ------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS B SHARES
Year ended 7/31/09 (0.71) $ 8.71 4.89%
Year ended 7/31/08 (0.62) $ 9.13 1.94%
Year ended 7/31/07 (0.65) $ 9.56 4.83%
11/29/05 (c) to 7/31/06 (0.36) $ 9.73 0.91%*
- ------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS C SHARES
Year ended 7/31/09 (0.71) $ 8.71 4.93%
Year ended 7/31/08 (0.63) $ 9.13 2.00%
Year ended 7/31/07 (0.65) $ 9.57 4.72%
11/29/05 (c) to 7/31/06 (0.36) $ 9.74 0.94%*
- ------------------------------------------------------------------------------------------
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 7/31/09 $ 26,856 0.65% 0.08% 4.80% 6%
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%
- ---------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS A SHARES
Year ended 7/31/09 $ 9,914 0.90% 0.33% 4.52% 6%
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%
- ---------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS B SHARES
Year ended 7/31/09 $ 5,099 1.65% 1.08% 3.76% 6%
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%
- ---------------------------------------------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE(SM) CLASS C SHARES
Year ended 7/31/09 $ 1,788 1.65% 1.08% 3.74% 6%
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%
- ---------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND INSTITUTIONAL SHARES
Year ended 7/31/09 $ 47,395 1.19% 0.74% 10.13% 32%
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%
11/29/05 (c) to 7/31/06 $ 66,033 1.15%** 0.74%** 6.77%** 41%
- ---------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS A SHARES
Year ended 7/31/09 $ 4,443 1.38% 0.99% 9.23% 32%
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%
11/29/05 (c) to 7/31/06 $ 227 2.98%** 0.99%** 6.74%** 41%
- ---------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS B SHARES
Year ended 7/31/09 $ 74 2.20% 1.74% 9.10% 32%
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%
11/29/05 (c) to 7/31/06 $ 96 7.16%** 1.74%** 5.98%** 41%
- ---------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND CLASS C SHARES
Year ended 7/31/09 $ 113 2.19% 1.74% 9.19% 32%
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%
11/29/05 (c) to 7/31/06 $ 55 8.04%** 1.74%** 5.93%** 41%
- ---------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
159
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS FROM
----------------------------- -----------------------------
NET REALIZED
AND
UNREALIZED CHANGE IN
NET ASSET GAINS/(LOSSES) NET ASSETS
VALUE, NET FROM RESULTING NET NET
BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT PAID-IN REALIZED
OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS INCOME CAPITAL GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND INSTITUTIONAL SHARES
Year ended 7/31/09 $ 9.03 0.46(x) (0.55) (0.09) (0.48) -- --
Year ended 7/31/08 $ 9.68 0.48(x) (0.64) (0.16) (0.49) -- --
Year ended 7/31/07 $ 9.68 0.45(x)@ 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)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS A SHARES
Year ended 7/31/09 $ 9.03 0.44(x) (0.55) (0.11) (0.46) -- --
Year ended 7/31/08 $ 9.67 0.46(x) (0.64) (0.18) (0.46) -- --
Year ended 7/31/07 $ 9.68 0.43(x)@ -- 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)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS B SHARES
Year ended 7/31/09 $ 9.03 0.38(x) (0.54) (0.16) (0.40) -- --
Year ended 7/31/08 $ 9.68 0.39(x) (0.65) (0.26) (0.39) -- --
Year ended 7/31/07 $ 9.68 0.35(x)@ 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)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS C SHARES
Year ended 7/31/09 $ 9.04 0.38(x) (0.55) (0.17) (0.40) -- --
Year ended 7/31/08 $ 9.68 0.39(x) (0.64) (0.25) (0.39) -- --
Year ended 7/31/07 $ 9.69 0.35(x)@ -- 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)
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND INSTITUTIONAL SHARES
Year ended 7/31/09 $ 9.29 0.33(x) 0.05 0.38 (0.34) -- --
Year ended 7/31/08 $ 9.32 0.38(x) (0.03) 0.35 (0.38) -- --
Year ended 7/31/07 $ 9.25 0.37(x) 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) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND CLASS A SHARES
Year ended 7/31/09 $ 9.29 0.31(x) 0.04 0.35 (0.32) -- --
Year ended 7/31/08 $ 9.31 0.35(x) (0.01) 0.34 (0.36) -- --
Year ended 7/31/07 $ 9.25 0.35(x) 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) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND CLASS C SHARES
Year ended 7/31/09 $ 9.28 0.22(x) 0.07 0.29 (0.26) -- --
Year ended 7/31/08 $ 9.32 0.28(x) (0.02) 0.26 (0.30) -- --
Year ended 7/31/07 $ 9.25 0.28(x) 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) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
160
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET TOTAL
TOTAL ASSET RETURN
DIVIDENDS VALUE, EXCLUDES
AND END OF SALES
DISTRIBUTIONS PERIOD CHARGE)
- --------------------------------------------------------------------------------------------------
TOTAL RETURN BOND INSTITUTIONAL SHARES
Year ended 7/31/09 (0.48) $ 8.46 (0.71)%
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%
- --------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS A SHARES
Year ended 7/31/09 (0.46) $ 8.46 (0.95)%
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%
- --------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS B SHARES
Year ended 7/31/09 (0.40) $ 8.47 (1.58)%
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%
- --------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS C SHARES
Year ended 7/31/09 (0.40) $ 8.47 (1.71)%
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%
- --------------------------------------------------------------------------------------------------
SHORT TERM BOND INSTITUTIONAL SHARES
Year ended 7/31/09 (0.34) $ 9.33 4.30%
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%
- --------------------------------------------------------------------------------------------------
SHORT TERM BOND CLASS A SHARES
Year ended 7/31/09 (0.32) $ 9.32 3.93%
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%
- --------------------------------------------------------------------------------------------------
SHORT TERM BOND CLASS C SHARES
Year ended 7/31/09 (0.26) $ 9.31 3.21%
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%
- --------------------------------------------------------------------------------------------------
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)
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND INSTITUTIONAL SHARES
Year ended 7/31/09 $ 386,492 0.84% 0.66% 5.54% 15%
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%
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS A SHARES
Year ended 7/31/09 $ 15,751 1.09% 0.91% 5.29% 15%
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%
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS B SHARES
Year ended 7/31/09 $ 2,932 1.84% 1.66% 4.55% 15%
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%
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN BOND CLASS C SHARES
Year ended 7/31/09 $ 745 1.84% 1.66% 4.52% 15%
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%
- -------------------------------------------------------------------------------------------------------------
SHORT TERM BOND INSTITUTIONAL SHARES
Year ended 7/31/09 $ 224,931 0.78% 0.64% 3.67% 63%
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%
- -------------------------------------------------------------------------------------------------------------
SHORT TERM BOND CLASS A SHARES
Year ended 7/31/09 $ 6,330 1.03% 0.89% 3.41% 63%
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%
- -------------------------------------------------------------------------------------------------------------
SHORT TERM BOND CLASS C SHARES
Year ended 7/31/09 $ 879 1.78% 1.64% 2.45% 63%
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%
- -------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
161
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.
(x) Average shares method used in calculation.
(o) Includes dividend and interest expense for securities sold short. See
table below.
INSTITUTIONAL CLASS A CLASS B CLASS C
------------- ------- ------- -------
Year ended 7/31/09 0.39% 0.39% 0.39% 0.33%
Year ended 7/31/08 0.59% 0.59% 0.59% 0.59%
Year ended 7/31/07 --^ --^ --^ --^
^ Amount is less than 0.005%.
@ During the year ended July 31, 2007, the Advisor paid money to certain
Funds related to an SEC investigation of Citi (formerly BISYS Fund
Services), a former service provider to the Funds. See Note 5 in Notes to
Financial Statements for further information. 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 (EXCLUDESALES CHARGE) BY THE ADVISOR &
------------------------------------------------------------------- ------------------
INSTITUTIONAL CLASS A CLASS B CLASS C ALL CLASSES
------------- ------- ------- ------- ------------------
Mid Cap Growth 17.24% 16.93% 16.06% 16.07% $ 0.01
Quality Growth 20.38% 20.05% 19.15% 19.15% $ 0.02
Disciplined Large Cap Value 14.44% 14.13% 13.38% 13.34% $ --^
Dividend Growth 14.90% 14.64% 13.78% 13.79% $ 0.07
International Equity 24.57% 24.27% 23.36% 23.31% $ --^
Total Return Bond 4.72% 4.45% 3.75% 3.65% $ 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.
~ Includes interest expense relating to settlement of foreign futures.
Interest expense was 0.02% for the year ended July 31, 2009.
! Includes extraordinary legal expenses of 0.39% for Institutional, 0.38%
for Class A, 0.39% for Class B and 0.25% for Class C for the year ended
July 31, 2009. See Note 3.
See notes to financial statements.
162
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
(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 twenty-four
separate investment portfolios.
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, which is a non-diversified investment company.
FUND NAME
- ---------
Fifth Third Small Cap Growth Fund ("Small Cap Growth")
Fifth Third Mid Cap Growth Fund ("MidCap Growth")
Fifth Third Quality Growth Fund ("Quality Growth")
Fifth Third Dividend Growth Fund ("Dividend Growth")
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 Structured Large Cap Plus Fund ("Structured Large Cap Plus")
Fifth Third Equity Index Fund ("Equity Index")
Fifth Third International Equity Fund ("International Equity")
Fifth Third Strategic Income Fund ("Strategic Income")
Fifth Third LifeModel Aggressive Fund(SM) ("LifeModel AggressiveSM")
Fifth Third LifeModel Moderately Aggressive Fund(SM) ("LifeModel Moderately
AggressiveSM")
Fifth Third LifeModel Moderate Fund(SM) ("LifeModel ModerateSM")
Fifth Third LifeModel Moderately Conservative Fund(SM) ("LifeModel Moderately
ConservativeSM")
Fifth Third LifeModel Conservative Fund(SM) ("LifeModel ConservativeSM")
(the foregoing five funds collectively the "LifeModel FundsSM")
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")
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. All Funds' Class B shares are closed to new purchases as of this report
date. All share classes of Structured Large Cap Plus are closed to all new
purchases as of this report date (see Note 3). Class A shares are subject to
initial sales charges imposed at the time of purchase, as described in the
Funds' prospectuses. Certain redemptions of each of Class A shares made within
eighteen months of purchase, Class B shares made within six years of purchase
and Class C shares made within one year of purchase are subject to contingent
deferred sales charges, as described in the Funds' prospectuses. 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.
The financial statements of the underlying Fifth Third Funds in which the
LifeModel Funds(SM) invest should be read in conjunction with the financial
statements for the applicable LifeModel Fund(SM).
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"),
163
FIFTH THIRD FUNDS NOTES
TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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 (the "Closing Date"), 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 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
==================
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 8).
164
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(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 VALUATION--Portfolio securities listed or traded on domestic
securities exchanges or in the over-the-counter market are valued at the latest
available sales price on the exchange or system where the security is
principally traded (except for securities traded on NASDAQ, which are valued at
the NASDAQ Official Closing Price) or, absent such a price, by reference to the
latest available bid and asked prices in the principal market in which such
securities are normally traded. Securities for which the principal market is not
a securities exchange or an over-the-counter market are valued at the mean of
their latest bid and asked quotations in such principal market. 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 Pricing Committee in accordance with
procedures adopted by 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 0.53% for Total Return Bond.
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--The Funds do not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gains or losses from investments. Realized foreign exchange gains or
losses arise from sales and maturities of securities, sales
165
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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.
LENDING PORTFOLIO SECURITIES-- Each Fund may lend securities up to 33 1/3% of
the Fund's total assets (including the amount of securities out on loan) to
qualified borrowers (typically broker-dealers) in order to enhance fund earnings
by investing cash collateral received in making such loans. The Funds continue
to earn interest and dividends on securities loaned by way of receiving
substitute payments (substitute dividend payments are generally not classified
as Qualified Dividend Income for federal income tax purposes). Loans will be
made only to borrowers deemed by the Lending Agent to be of sufficiently strong
financial standing, organizational stability and creditworthiness under
guidelines established by the Trustees and when, in the judgment of the Lending
Agent, the consideration that can be earned currently from such securities loans
justifies the attendant risks.
The Trust has engaged its custodian bank, State Street Bank and Trust Company
("State Street"), to act as Lending Agent and to administer its securities
lending program. State Street will earn a portion of program net income for its
services. When a Fund makes a security loan, it receives cash collateral as
protection against borrower default on the loaned security position and records
an asset for the cash/invested collateral and a liability for the return of the
collateral. Securities on loan continue to be included in investment securities
at market value on the Statements of Assets and Liabilities and remain on the
Schedule of Investments.
Loans of securities are required at the time the loan is made to be secured by
collateral at least equal to 105% of the prior day's market value of loaned
equity securities not denominated in U.S. dollars or Canadian dollars or not
primarily traded on a U.S. exchange; or 102% of the prior day's market value of
the securities on loan (including accrued interest) of any other loaned
securities, and not less than 100% thereafter. The Funds may invest cash
collateral in short-term money market instruments including: U.S. Treasury
Bills, U.S. agency sponsored obligations, commercial paper, money market mutual
funds, repurchase agreements and other highly rated, liquid investments.
During the life of securities loans, the collateral and securities loaned remain
subject to fluctuation in market value. State Street marks to market securities
loaned and the collateral each business day. If additional collateral is due,
State Street collects additional cash collateral from the borrowers. Although
securities loaned will be fully collateralized at all times, State Street may
experience delays in, or may be prevented from, recovering the collateral on
behalf of a Fund. State Street may on behalf of a Fund recall a loaned security
position at any time from a borrower, who is obligated to return the security
recalled. In the event the borrower fails to return a recalled security in a
timely fashion, State Street reserves the right to use the collateral to
purchase like securities in the open market. State Street indemnifies the Funds
against borrower default by agreeing to fund any shortfall between the
collateral held and the cost of obtaining replacement securities. If replacement
securities are not available, State Street will credit the equivalent cash value
to the Fund(s). As of July 31, 2009, no funds had securities on loan.
See Note 13 - Lehman Brothers Bankruptcy and Default on Securities Lending
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.
166
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS--Dividends, if any, from net investment income are
generally declared/paid as follows:
DECLARED DAILY/PAID MONTHLY DECLARED/PAID MONTHLY DECLARED/PAID QUARTERLY DECLARED/PAID ANNUALLY
- --------------------------- --------------------- ----------------------- -----------------------
Strategic Income High Yield Bond Dividend Growth Small Cap Growth
Total Return Bond All Cap Value Mid Cap Growth
Short Term Bond Disciplined Large Cap Value Quality Growth
Structured Large Cap Plus Micro Cap Value
Equity Index Small Cap Value
The LifeModel Funds(SM) International Equity
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, 2009, 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 $ (272,118) $ 272,118 $ --
Mid Cap Growth (860,783) (12,822) 873,605
Quality Growth (432) 6,829 (6,397)
Dividend Growth (18) (58) 76
Micro Cap Value (71,059) 910 70,149
Small Cap Value (87) (163,296) 163,383
All Cap Value (17,375) (23,973) 41,348
Disciplined Large Cap Value 148,906 (536,982) 388,076
Structured Large Cap Plus (5,734,579) 226,290 5,508,289
Equity Index (337) (80,089) 80,426
International Equity (440,482) (520,670) 961,152
Strategic Income (111) 2,330,405 (2,330,294)
LifeModel Aggressive(SM) (153) 194,694 (194,541)
LifeModel Moderately Aggressive(SM) (268) 257,449 (257,181)
LifeModel Moderate(SM) (415) 276,002 (275,587)
LifeModel Moderately Conservative(SM) (81) 38,250 (38,169)
LifeModel Conservative(SM) (52) 11,932 (11,880)
High Yield Bond (48) 48 --
Total Return Bond (314,047) (3,242) 317,289
Short Term Bond 414,642 135,339 (549,981)
GUARANTEES AND INDEMNIFICATIONS - 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.
167
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
FEDERAL TAXES--It is the intention of each Fund to 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.
In accordance with Financial Accounting Standards Board ("FASB") Interpretation
No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB
Statement No. 109 ("FIN 48"), 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, 2009, 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 2006-2008, 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.
RECENT ACCOUNTING PRONOUNCEMENTS - Effective August 1, 2008, the Funds adopted
FASB Statement of Financial Accounting Standards No. 157, Fair Value
Measurements ("FAS 157"). In accordance with FAS 157, fair value is defined as
the price that a Fund would receive or pay to sell an asset or transfer a
liability in an orderly transaction between market participants at the
measurement date. FAS 157 establishes and requires disclosure of a fair value
hierarchy, separately for each major category of assets and liabilities, that
segregates fair value measurements into levels based upon inputs using quoted
prices in active markets for identical assets or liabilities (Level 1),
significant other observable inputs (Level 2), and significant unobservable
inputs (Level 3). Valuation levels are not necessarily an indication of the risk
associated with investing in those securities.
For fair value measurements using significant unobservable inputs (Level 3), FAS
157 requires a reconciliation of the beginning to ending balances for reported
market values that presents changes attributable to total realized and
unrealized gains or losses, purchases and sales, and transfers in/out of the
Level 3 hierarchy categorization during the period. Level 3 holdings transfer in
at beginning of period values and transfer out at end of period values. Total
realized and unrealized gains and losses of Level 3 holdings are included in net
realized and unrealized gains and losses in the Funds' Statements of Operations.
Effective July 31, 2009, the Funds adopted FASB Staff Position No. 157-4,
Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly ("FSP 157-4"). FSP 157-4 provides additional guidance for estimating
fair value in accordance with FAS 157, when the volume and level of activity for
the asset or liability have significantly decreased as well as guidance on
identifying circumstances that indicate a transaction is not orderly. See Note
11 for information about Fair Value Measurements.
Effective February 1, 2009, the Funds adopted FASB Statement of Financial
Accounting Standards No. 161, Disclosures about Derivative Instruments and
Hedging Activities, an amendment of FASB Statement 133 ("FAS 161"). FAS 161
requires enhanced disclosures about Funds' derivative and hedging activities,
including Funds' objectives for using derivatives and the strategies to achieve
those objectives, quantitative disclosures about fair value amounts of and gains
and losses on derivatives and disclosures about counterparty credit exposure
related to derivatives. See Note 4 for information about Financial Derivative
Investments and Note 12 for Fair Value Measurements of derivatives.
The Funds adopted FASB Statement of Financial Accounting Standards No, 165,
Subsequent Events ("FAS 165"). FAS 165 requires the Funds to recognize the
effects of events that provide additional evidence about conditions that existed
at balance sheet date, including estimates inherent in the process of preparing
financial statements.
168
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(3) SECURITIES AND OTHER INVESTMENTS
REPURCHASE AGREEMENTS--The Funds may enter into repurchase agreements only with
banks and other recognized financial institutions, such as broker/dealers, which
are deemed by Fifth Third Asset Management, Inc. ("FTAM" or the "Advisor") to be
creditworthy pursuant to guidelines and/or standards reviewed or established by
the Trustees. It is the policy of the Funds to require the custodian or
sub-custodian bank to take possession or have legally segregated in the Federal
Reserve Book Entry System, 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.
SHORT SALES -- Structured Large Cap Plus may sell securities short, 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. See Notes to Schedule of Investments.
As described in the Structured Large Cap Plus Fund's (the "Fund") Prospectuses,
the Fund may sell securities short as part if its investment strategy. Prior to
September 19, 2009, Lehman Brothers, Inc. ("LBI") served as the exclusive prime
broker for the Fund's short sales. Due to bankruptcy, LBI's business is
currently being liquidated under the Securities Investor Protection Act. The
trustee for the liquidation proceedings (the "Liquidation Trustee") has taken a
position with respect to the valuation date for the Fund's short positions that
Fund management believes to be incorrect and materially disadvantageous to the
Fund. While efforts to resolve this dispute are still being pursued, a partial
settlement of this dispute with the Liquidation Trustee was reached on March 12,
2009. The Fund has established an escrow account at the Fund's custodian bank
with respect to the amount in dispute ($18,179,102). The substance of the
dispute itself has not been resolved. While the dispute remains unresolved,
assets in the escrow account are invested in a money market fund not affiliated
with the Trust, and therefore are not invested in accordance with the Fund's
investment strategy. The assets in the escrow account do not belong to the Fund
or its shareholders. These assets also are not available to meet the Fund's
general obligations. The amount in the escrow account is subject to change due
to, among other things, escrow account fees and investment results.
Given the above uncertainties, the benefits of favorable outcome are too
speculative to be included in the Fund's share value calculation. Therefore, the
Fund's per share net asset value continues to reflect a negative outcome.
Shareholders who redeem shares prior to resolution of the litigation will lose
the right to benefit, should the outcome be favorable.
While the Fund is pressing for an acceptable resolution of the dispute, it is
anticipated that the above-described circumstances may continue for a protracted
period, and it is unclear whether the dispute will be resolved in a manner
favorable to the Fund. Should the position of the Liquidation Trustee prevail,
the assets in the escrow account will not belong to the Fund or its
shareholders.
169
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
In accordance with the Fund's prospectuses, the Fund's legal expenses related to
these matters, including costs of possible litigation, are considered
extraordinary expenses and therefore are borne by the Fund without regard to the
Fund's expense limitation agreement. These expenses have been and may continue
to be substantial. In addition, these expenses, as well as declines in assets
resulting from recent market conditions, will result in the Fund's expense ratio
for the current fiscal year being materially higher than that reflected in the
Fund's prospectus. As of July 31, 2009, the Fund had incurred $350,233 of
extraordinary legal expenses.
The Fund presently is closed to all new purchases. Shareholders who participate
in automatic reinvestment of dividends and/or capital gains distributions will
continue to receive shares of the Fund through those programs.
Beginning in March 2009, the new prime broker for the Fund's short sales is
Pershing, LLC. Pershing, LLC is a subsidiary of the Bank of New York Mellon
Corporation.
The LifeModel Funds(SM) invest in Structured Large Cap Plus. An increase in the
expense ratio of Structured Large Cap Plus will affect the return on investments
by the LifeModel Funds(SM).
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery ("TBAs") 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, a sufficient amount of cash
and/or securities is segregated as collateral. See Notes to Schedules of
Investments.
(4) FINANCIAL DERIVATIVE INSTRUMENTS
FOREIGN CURRENCY CONTRACTS--The Funds may enter into foreign currency contracts
to settle planned purchases or sales of securities or to protect against a
possible loss resulting from the adverse change in the relationship between the
U.S. Dollar and a foreign currency involved in an underlying transaction.
Foreign currency contracts are agreements between two parties to buy and sell a
currency at a set price on a future date. The market value of a foreign currency
contract fluctuates with changes in currency exchange rates. Foreign currency
contracts are marked-to-market daily and the change in market value is recorded
by a Fund as unrealized appreciation or depreciation. When a foreign currency
contract 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. These contracts may involve market risk in excess of the
unrealized gain or loss reflected on the Statements of Assets and Liabilities.
In addition, a Fund could be exposed to credit risk if a counterparty is unable
or unwilling to meet the terms of the contracts or if the value of the currency
changes unfavorably. In connection with these contracts, the Funds may segregate
cash and/or securities in a sufficient amount as collateral in accordance with
the terms of the respective contracts.
FUTURES CONTRACTS--The Funds, with the exception of Dividend Growth, may enter
into futures contracts which represent a commitment for the future purchase or
sale of an asset at a specified price on a specified date. The Funds may use
futures contracts to gain exposure to, or hedge against changes in the value of
equities, interest rates or foreign currencies. 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
receivable or payable. The Funds recognize 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. With futures, there is minimal counterparty credit risk to the Funds
since futures are exchange traded and the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures against
default. Futures
170
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
contracts involve, to varying degrees, risk of loss in excess of the variation
margin disclosed on the Statements of Assets and Liabilities. 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. Futures contracts open as of this report date are
listed in the Notes to Schedules 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.
Credit default swap agreements involve one party making a stream of payments to
another party in exchange for the right to receive a specified return in the
event of a default by a third party - typically, a corporate issuer or sovereign
issuer of an emerging country - on its obligation. A Fund may use credit default
swaps to provide a measure of protection against defaults of the issuers (i.e.,
to reduce risk where a Fund owns or has exposure to the issuer) or to take an
active long or short position with respect to the likelihood of a particular
issuer's default. When it is a seller of protection, a Fund generally receives
an upfront payment or a fixed rate of income throughout the term of the swap,
provided that there is no credit event. If a Fund is a seller of protection and
a credit event occurs, as defined under the terms of the particular swap
agreement, a Fund must pay to the buyer of the protection an amount up to the
notional value of the swap and, in certain instances, take delivery of the
underlying asset. 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. The Funds' maximum risk of loss
from counterparty risk, either as the protection seller or as the protection
buyer, is the fair value of the contract. This risk is mitigated by having a
master netting arrangement between the fund and the counterparty and by the
posting of collateral by the counterparty to the Funds to cover the Funds'
exposure to the counterparty.
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. No funds have open swap
contracts as of the date of this report.
171
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(5) 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. Pursuant to a
sub-advisory arrangement with FTAM, Fort Washington Investment Advisors, Inc.
("Fort Washington") 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 the table of advisory fees, waivers and expense
limitations below.
ADMINISTRATION FEE--FTAM is the Trust's administrator (the "Administrator") and
generally assists in all aspects of the Trust's administration and operations,
including providing the Funds with certain administrative personnel and services
necessary to operate the Funds. FTAM receives administration fees at the annual
rates shown below, which are computed daily and paid monthly based on average
daily net assets of the Trust; the fees are prorated among the Funds based upon
their relative average daily net assets.
ADMINISTRATION FEE TRUST AVERAGE DAILY NET ASSETS
------------------ ------------------------------
0.20% Up to $1 billion
0.18% In excess of $1 billion up to $2 billion
0.17% In excess of $2 billion
For certain Funds, FTAM has voluntarily agreed to waive a portion of its
administration fee. In addition, a $10,000 annual, per class, per Fund fee
applies beyond the first four classes per Fund (only Equity Index has more than
four classes), 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, 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, 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
172
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
cause the Fund to exceed the expense limitation. All waivers not recovered at
the end of the period expire on November 28, 2009. 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***
- ----- -------- -------- -------- ---------- -------- ----- ----- ----- ---------
Small Cap Growth 0.70% NA V NA 1.01% 1.26% 2.01% 2.01% NA
Mid Cap Growth* 0.80% 0.10% C 0.06% 0.93% 1.18% 1.93% 1.93% $ 170,251
Quality Growth 0.80% NA C 0.02% 1.06% 1.31% 2.06% 2.06% $ 166,159
Dividend Growth 0.80% 0.20% C NA 0.73% 0.98% 1.73% 1.73% $ 115,263
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% 0.10% C 0.05% 1.14% 1.39% 2.14% 2.14% $ 272,146
Disciplined Large Cap Value* 0.80% 0.10% C 0.01% 0.96% 1.21% 1.96% 1.96% $ 211,050
Structured Large Cap Plus++ 0.70% NA C NA 0.92% 1.17% 1.92% 1.92% $ 265,243
Equity Index^ 0.30% 0.20% C 0.065% 0.19% 0.44% 1.19% 1.19% $ 679,753
International Equity (o) 1.00% 0.14% C NA 1.21% 1.46% 2.21% 2.21% $ 124,905
Strategic Income* 1.00% 0.35% C 0.05% 0.91% 1.16% 1.91% 1.91% $ 258,133
LifeModel Aggressive(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 355,878
LifeModel Moderately Aggressive(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 634,413
LifeModel Moderate(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 770,219
LifeModel Moderately Conservative(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 214,117
LifeModel Conservative(SM) 0.15% 0.12% C NA 0.08% 0.33% 1.08% 1.08% $ 161,170
High Yield Bond 0.70% NA C NA 0.74% 0.99% 1.74% 1.74% $ 118,954
Total Return Bond * 0.60% 0.15% C 0.06% 0.65% 0.90% 1.63% 1.63% $ 500,789
Short Term Bond 0.50% 0.10% V NA 0.64% 0.89% NA 1.64% NA
* 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
- ----- ---------------------- ---------------
Mid Cap Growth 0.16% November 29, 2008
All Cap Value 0.05% November 29, 2008
Disciplined Large Cap Value 0.05% November 29, 2008
Strategic Income 0.05% November 29, 2008
Total Return Bond 0.03% November 29, 2008
** C - Contractual, V - Voluntary (as of November 29, 2008).
*** The cumulative amounts waived and/or reimbursed which may be potentially
recoverable by FTAM under the expense limitation agreements for the period
from November 29, 2008 through July 31, 2009.
++ Because dividend expenses on short sales and extraordinary legal expenses
are excluded from this fund's expense limitation, Net Expenses are
expected to exceed the applicable expense limitation by the amount of
these items.
^ 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.
(o) International Equity's Advisory Fee is 0.85% for net assets in excess of
$750 million.
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.
173
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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.
CLASS DISTRIBUTION/SERVICING FEE
------- --------------------------
Class A 0.25%
Class B 1.00%
Class C 0.75%
In addition, the Distributor earned commissions on certain sales of Class A
shares (most of which commissions are reallowed to the selling broker-dealer) as
well as contingent deferred sales commissions (CDSC) on certain redemptions of
Class A, B and C shares (all of which is paid to the finance agent who financed
advance commissions, as applicable, on sales of these shares). FTAM is the Class
C advance commission finance agent. CDSCs on Class C shares for the period ended
as of this report date were $6,582 for the Trust, a majority of which was
attributed to FTAM. Affiliates of FTAM earned reallowed sales commissions of
$148,565 and 12b-1 distribution/servicing fees as well as administrative
servicing fees (see below) of $2,843,909 for the period ended as of the report
date.
ADMINISTRATIVE SERVICING FEE--The Trust has an Administrative Service Agreement
with the Distributor with respect to Class C, Select, Preferred and Trust
Shares. Under the Agreement, 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) receives fees
computed at rates up to those shown below, based on average daily net assets of
the respective classes.
CLASS ADMINISTRATIVE SERVICING FEE
------- ----------------------------
Class C 0.25%
Select 0.08%
Preferred 0.15%
Trust 0.25%
TRANSFER AND DIVIDEND DISBURSING AGENT--Pursuant to a Services Agreement with
the Trust dated May 14, 2007, FTAM provides certain services on behalf of the
Trust. Under this agreement, FTAM's fees are paid monthly and are accrued daily
based upon each Fund of the Trust's relative average daily net assets, at the
aggregate annual amount 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. 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--Citi (formerly BISYS Fund Services, Inc. ("Citi")),
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 Citi'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 Citi 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 Citi, 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
174
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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 were
allocated among the components of net assets for the fiscal year ended July 31,
2007 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.
(6) 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 $ 41,623,088 $ 49,793,333 $ -- $ --
Mid Cap Growth 55,315,588 123,310,260 -- --
Quality Growth 99,049,536 158,595,142 12,360 44,004
Dividend Growth 12,187,209 18,827,305 -- --
Micro Cap Value 11,632,072 16,125,830 -- --
Small Cap Value 43,575,290 46,063,611 -- --
All Cap Value 64,145,608 103,427,920 -- --
Disciplined Large Cap Value 194,993,008 257,554,876 -- --
Structured Large Cap Plus 166,200,627 175,377,518 -- --
Equity Index 18,665,784 31,886,682 -- --
International Equity 263,052,649 334,989,820 -- --
Strategic Income 25,128,726 40,846,535 734,592 2,776,567
LifeModel Aggressive(SM) 10,151,090 15,900,000 -- --
LifeModel Moderately Aggressive(SM) 16,375,487 26,750,000 -- --
LifeModel Moderate(SM) 24,529,064 41,300,000 -- --
LifeModel Moderately Conservative(SM) 5,305,429 15,150,000 -- --
LifeModel Conservative(SM) 2,563,958 3,925,000 -- --
High Yield Bond 15,505,261 12,965,898 -- --
Total Return Bond 40,137,002 97,104,505 28,343,064 91,817,921
Short Term Bond 52,422,001 92,378,554 83,858,959 63,695,571
(7) LINE OF CREDIT
As of February 1, 2008, the Funds have an uncommitted, unsecured line of credit
facility with State Street. Under the terms of the agreement, the Funds may
borrow up to $100 million in the aggregate. The purpose of the facility
generally is to borrow funds if necessary to meet temporary or emergency cash
needs, including to fund redemption requests that might otherwise require the
untimely disposition of securities. Borrowings may not exceed 33 (1)/3% of a
Fund's net assets (except that with respect to Structured Large Cap Plus,
borrowings may not exceed 10% 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 a fixed rate plus a spread determined by State Street. There were
no borrowings against the line of credit during the fiscal year.
175
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(8) FEDERAL TAX INFORMATION
The tax character of distributions paid during the fiscal years ended July 31,
2009 and 2008 was as follows:
YEAR ENDED JULY 31, 2009 YEAR ENDED JULY 31, 2008
------------------------------------------ --------------------------------------------
DISTRIBUTIONS PAID FROM DISTRIBUTIONS PAIDFROM
------------------------------------------ --------------------------------------------
NET TOTAL NET TOTAL
ORDINARY LONG TERM DISTRIBUTIONS ORDINARY LONG TERM DISTRIBUTIONS
INCOME CAPITAL GAINS PAID INCOME CAPITAL GAINS PAID
------------ ------------- ------------- ------------ ------------- -------------
Small Cap Growth $ -- $ -- $ -- $ 8,873,764 $ 31,126,216 $ 39,999,980
Mid Cap Growth -- 18,599,504 18,599,504 3,389,553 45,218,701 48,608,254
Quality Growth 1,785,090 12,504,389 14,289,479 21,265,643 67,802,545 89,068,188
Dividend Growth 241,615 -- 241,615 263,404 -- 263,404
Micro Cap Value 177,688 12,489 190,177 1,172,603 22,356,893 23,529,496
Small Cap Value 1,145,372 20,850 1,166,222 2,310,779 11,137,686 13,448,465
All Cap Value 3,208,122 12,448,038 15,656,160 7,678,070 41,680,209 49,358,279
Disciplined Large Cap Value 9,918,790 6,405,451 16,324,241 20,522,118 31,674,457 52,196,575
Structured Large Cap Plus 2,273,281 -- 2,273,281 1,388,324 955,083 2,343,407
Equity Index 6,779,041 -- 6,779,041 6,749,004 -- 6,749,004
International Equity 8,795,977 42,624,633 51,420,610 16,880,862 29,974,715 46,855,577
Strategic Income 6,471,043 92,440 6,563,483 7,586,002 4,046,949 11,632,951
LifeModel Aggressive(SM) 3,012,756 14,443,499 17,456,255 6,109,169 13,564,253 19,673,422
LifeModel Moderately
Aggressive(SM) 7,841,928 19,285,785 27,127,713 11,696,334 21,736,616 33,432,950
LifeModel Moderate(SM) 15,066,250 18,699,879 33,766,129 20,278,652 24,782,374 45,061,026
LifeModel Moderately
Conservative(SM) 3,031,530 3,848,615 6,880,145 3,820,869 4,771,242 8,592,111
LifeModel Conservative(SM) 2,178,274 817,947 2,996,221 2,234,699 1,227,481 3,462,180
High Yield Bond 4,177,451 -- 4,177,451 4,533,878 -- 4,533,878
Total Return Bond 25,772,859 -- 25,772,859 26,468,692 -- 26,468,692
Short Term Bond 8,419,898 -- 8,419,898 10,702,400 -- 10,702,400
As of July 31, 2009, the components of accumulated earnings/(deficit) on a tax
basis were as follows: TOTAL
UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED
UNDISTRIBUTED LONG-TERM CAPITAL AND APPRECIATION/ EARNINGS/
ORDINARY INCOME CAPITAL GAINS OTHER LOSSES (DEPRECIATION)* (DEFICIT)
--------------- ------------- ------------------ ------------------- -------------------
Small Cap Growth $ -- $ -- $ (15,603,802) $ 482,832 $ (15,120,970)
Mid Cap Growth -- -- (47,491,533) (9,450,906) (56,942,439)
Quality Growth 773,475 -- (45,096,506) 9,143,994 (35,179,037)
Dividend Growth 4,032 -- (17,611,110) 854,028 (16,753,050)
Micro Cap Value -- -- (7,983,326) (1,965,600) (9,948,926)
Small Cap Value 178,113 -- (16,496,379) (2,792,620) (19,110,886)
All Cap Value -- -- (38,844,617) (12,140,374) (50,984,991)
Disciplined Large Cap Value 73,193 -- (105,341,568) (9,351,160) (114,619,535)
Structured Large Cap Plus 198,188 -- (61,356,149) 659,607 (60,498,354)
Equity Index 250,656 -- (3,227,233) 105,583,206 102,606,629
International Equity 7,271,762 -- (153,768,430) 4,931,693 (141,564,975)
Strategic Income 1,695,649 -- (9,359,395) (21,960,100) (29,623,846)
LifeModel Aggressive(SM) 38,503 1,637,324 1 (43,289,527) (41,613,699)
LifeModel Moderately
Aggressive(SM) 263,875 888,459 -- (56,409,785) (55,257,451)
LifeModel Moderate(SM) 814,894 -- (855,405) (80,131,903) (80,172,414)
LifeModel Moderately
Conservative(SM) 162,773 -- (764,704) (12,603,143) (13,205,074)
LifeModel Conservative(SM) 165,388 -- (180,556) (8,119,393) (8,134,561)
High Yield Bond 28,425 -- (4,917,166) (2,921,722) (7,810,463)
Total Return Bond -- -- (79,914,126) (57,114,966) (137,029,092)
Short Term Bond 153,199 -- (19,445,705) (5,356,077) (24,648,583)
* 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.
176
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
As of July 31, 2009, for Federal income tax purposes, the following Funds have
capital loss carryforwards available to offset future capital gains, if any, to
the extent provided by the U.S. Treasury regulations:
EXPIRATION YEAR
--------------------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 TOTAL
----------- ---------- ---------- ---------- --------- ---------- ---------- ----------- ------------
Small Cap Growth $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 4,362,500 $ 4,362,500
Dividend Growth 10,084,841 3,023,983 39,378 -- -- -- -- 1,348,987 14,497,189
Micro Cap Value -- -- -- -- -- -- -- 2,441,069 2,441,069
Small Cap Value -- -- -- -- -- -- -- 2,188,201 2,188,201
All Cap Value -- -- -- -- -- -- -- 11,136,332 11,136,332
Disciplined Large
Cap Value -- -- -- -- -- -- -- 18,715,803 18,715,803
Structured Large
Cap Plus -- -- 793,432 -- -- -- 1,246,518 16,257,218 18,297,168
Equity Index -- 2,617,392 605,734 -- -- -- -- -- 3,223,126
International Equity 1,405,848 5,161,371 -- -- -- -- -- 67,425,163 73,992,382
Strategic Income -- -- -- -- -- -- -- 1,379,950 1,379,950
LifeModel Moderate -- -- -- -- -- -- -- 855,404 855,404
LifeModel Moderately
Conservative -- -- -- -- -- -- -- 764,706 764,706
LifeModel Conservative -- -- -- -- -- -- -- 180,556 180,556
High Yield Bond -- -- -- -- -- 382,634 -- 1,319,442 1,702,076
Total Return Bond -- 2,967,989 3,490,975 6,705,683 12,507,496 4,893,287 1,172,463 28,880,095 60,617,988
Short Term Bond -- -- -- 4,956,929 9,778,491 4,709,395 -- -- 19,444,815
As of July 31, 2009, 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
2010 2011 2012 2013 2014 2015 2016 2017 TOTAL
------------ -------- ------- ------- ------- ------- ------ ------------ ------------
Mid Cap Growth $ 592,404 $ -- $ -- $ -- $ -- $ -- $ -- $ 25,696,435 $ 26,288,839
Quality Growth 1,533,455 -- -- -- -- -- -- 4,084,186 5,617,641
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, 2009, the following Funds deferred to August 1, 2009
post October capital losses, post October currency losses and post October
passive foreign investment company losses of:
CAPITAL
LOSSES
------------
Small Cap Growth Fund $ 11,237,250
Mid Cap Growth 20,610,291
Quality Growth 37,945,410
Dividend Growth Fund 3,113,919
Micro Cap Value Fund 5,542,256
Small Cap Value Fund 14,308,178
All Cap Value 27,708,287
Disciplined Large Cap Value 86,625,764
Structured Large Cap Plus 43,054,374
International Equity 79,773,162
Strategic Income Fund 7,979,444
High Yield Bond 3,215,090
Total Return Bond 19,301,892
During the tax year ended July 31, 2009, the funds used/expired capital loss
carryforwards in the following amounts:
AMOUNT USED AMOUNT EXPIRED
------------ --------------
Mid Cap Growth $ -- $ 592,404
Structured Large Cap Plus -- 5,734,447
Equity Index 1,464,349 --
International Equity -- 440,002
Total Return Bond -- 313,458
Short Term Bond 2,139,720 --
177
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
As of July 31, 2009, the following funds have a current year Investment Company
taxable loss:
TAXABLE
LOSS
------------
Small Cap Growth $ 246,144
Mid Cap Growth 236,915
(9) 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 Trustees, and in accordance with the Trust's Security Valuation
Procedures, which have been approved by the Trustees of the Trust. If and when
such securities are registered, the costs of registering such securities are
paid by the issuer. At July 31, 2009, Quality Growth, Strategic Income, Total
Return Bond and Short Term Bond held the following restricted securities:
VALUE AS
ACQUISITION ACQUISITION FAIR % OF
SECURITY TYPE DATE COST VALUE NET ASSETS
-------------------------- ------------ ------------ ------------ -----------
QUALITY GROWTH
Aerco, Ltd., Series 2A, Class 3A Asset-Backed Securities 2/28/07 $ 76,618 $ 29,963 0.01%
============ ============ ===========
STRATEGIC INCOME
Aerco, Ltd., Series 2A, Class 3A Asset-Backed Securities 2/28/07 $ 922,178 $ 329,590 0.40%
============ ============ ===========
TOTAL RETURN BOND
Restructured Assets Certificates,
Series 2006-9 Mortgage-Backed Securities 8/10/06 $ 5,234,953 $ 2,160,375 0.53%
Aerco, Ltd., Series 2A, Class 3A Asset-Backed Securities 2/28/07 1,850,253 680,153 0.17%
------------ ------------ -----------
$ 7,085,206 $ 2,840,528 0.70%
============ ============ ===========
SHORT TERM BOND
SVO VOI Mortgage Corp.,
Series 2005-AA, Class A Asset-Backed Securities 11/16/05 $ 1,289,252 $ 730,298 0.31%
============ ============ ===========
(10) PRINCIPAL RISKS
CONCENTRATION RISK - 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.
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.
INTEREST RATE RISK - Interest rate risk is the risk that fixed income securities
will decline in value because of changes in interest rates. A rise in interest
rates typically causes a fall in values. Interest rate risk should be modest for
shorter-term securities, moderate for intermediate-term securities and high for
longer-term securities. Generally, an increase in the average maturity of a Fund
will make it more sensitive to interest rate risk.
178
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
FOREIGN CURRENCY RISK - If a Fund invests directly in foreign currencies or in
securities that trade in, and receive revenues in, foreign currencies, or in
derivatives that provide exposure to foreign currencies, it will be subject to
the risk that those currencies will decline in value relative to the U.S.
dollar. This also includes the risk associated with higher transaction costs,
delayed settlements, currency controls and adverse economic developments related
to foreign investments.
(11) FAIR VALUE MEASUREMENTS
The following is a summary of the fair value hierarchy according to the inputs
used as of July 31, 2009 in valuing the Funds' assets and liabilities:
FAIR VALUE MEASUREMENT AT 7/31/2009 USING
------------------------------------------------------
QUOTED PRICES
IN ACTIVE MARKETS SIGNIFICANT OTHER SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS VALUE AT
(LEVEL 1) (LEVEL 2) (LEVEL 3) 7/31/09
-------------------------------------------------------------------------
Small Cap Growth
- ---------------------------------------------
Common Stocks* $ 47,616,264 $ -- $ -- $ 47,616,264
Investments in Affiliates 3,453,073 -- -- 3,453,073
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 51,069,337 $ -- $ -- $ 51,069,337
=========================================================================
Mid Cap Growth
- ---------------------------------------------
Common Stocks* $ 95,551,393 $ -- $ -- $ 95,551,393
Investments in Affiliates 918,618 -- -- 918,618
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 96,470,011 $ -- $ -- $ 96,470,011
=========================================================================
Quality Growth
- ---------------------------------------------
Common Stocks* $ 298,257,842 $ -- $ -- $ 298,257,842
Asset-Backed Securities Manufactured
Housing ABS Other -- 125,001 -- 125,001
Other ABS -- -- 29,963 29,963
Corporate Bonds -- 158,172 -- 158,172
Mortgage-Backed Securities -- 1,144,516 -- 1,144,516
U.S. Government Agencies -- 853,845 -- 853,845
Investments in Affiliates 5,542,098 -- -- 5,542,098
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 303,799,940 $ 2,281,534 $ 29,963 $ 306,111,437
=========================================================================
Dividend Growth
- ---------------------------------------------
Common Stocks* $ 8,817,399 $ -- $ -- $ 8,817,399
Exchange-Traded Funds 102,172 -- -- 102,172
Investments in Affiliates 188,259 -- -- 188,259
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 9,107,830 $ -- $ -- $ 9,107,830
=========================================================================
Micro Cap Value
- ---------------------------------------------
Common Stocks* $ 26,211,975 $ -- $ -- $ 26,211,975
Investments in Affiliates 1,698,188 -- -- 1,698,188
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 27,910,163 $ -- $ -- $ 27,910,163
=========================================================================
Small Cap Value
- ---------------------------------------------
Common Stocks* $ 64,713,740 $ -- $ -- $ 64,713,740
Investments in Affiliates 2,991,492 -- -- 2,991,492
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 67,705,232 $ -- $ -- $ 67,705,232
=========================================================================
All Cap Value
- ---------------------------------------------
Common Stocks* $ 138,034,606 $ -- $ -- $ 138,034,606
Investments in Affiliates 3,665,349 -- -- 3,665,349
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 141,699,955 $ -- $ -- $ 141,699,955
=========================================================================
Disciplined Large Cap Value
- ---------------------------------------------
Common Stocks* $ 313,408,410 $ -- $ -- $ 313,408,410
Investments in Affiliates 6,440,971 -- -- 6,440,971
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 319,849,381 $ -- $ -- $ 319,849,381
=========================================================================
179
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENT AT 7/31/2009 USING
------------------------------------------------------
QUOTED PRICES
IN ACTIVE MARKETS SIGNIFICANT OTHER SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS VALUE AT
(LEVEL 1) (LEVEL 2) (LEVEL 3) 7/31/09
-------------------------------------------------------------------------
Structured Large Cap Plus
- ---------------------------------------------
Common Stocks* $ 98,285,923 $ -- $ -- $ 98,285,923
Investments in Affiliates 2,982,162 -- -- 2,982,162
Securities Sold Short (22,710,386) -- -- (22,710,386)
Other Financial Instruments** 227,621 -- -- 227,621
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 78,785,320 $ -- $ -- $ 78,785,320
=========================================================================
Equity Index
- ---------------------------------------------
Common Stocks* $ 260,182,973 $ -- $ -- $ 260,182,973
Investments in Affiliates 6,479,731 -- -- 6,479,731
Other Financial Instruments** 428,294 -- -- 428,294
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 267,090,998 $ -- $ -- $ 267,090,998
=========================================================================
International Equity
- ---------------------------------------------
Foreign Stocks* $ 234,633,345 $ -- $ -- $ 234,633,345
Investment Companies 7,235,800 -- -- 7,235,800
Investments in Affiliates 3,505,231 -- -- 3,505,231
Other Financial Instruments** 407,475 -- -- 407,475
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 245,781,851 $ -- $ -- $ 245,781,851
=========================================================================
Strategic Income
- ---------------------------------------------
Asset-Backed Securities Other ABS $ -- $ 699,105 $ 329,590 $ 1,028,695
Other -- 1,619,238 -- 1,619,238
Convertible Bonds -- 421,812 -- 421,812
Corporate Bonds -- 16,954,148 -- 16,954,148
Foreign Bonds -- 5,748,906 -- 5,748,906
Mortgage-Backed Securities -- 5,118,621 -- 5,118,621
U.S. Government Agencies -- 3,344,813 -- 3,344,813
U.S. Treasury Obligation -- 939,450 -- 939,450
Common Stocks* 3,551,693 -- -- 3,551,693
Investment Companies 3,159,580 -- -- 3,159,580
Convertible Preferred Stock 3,186,290 -- -- 3,186,290
Preferred Stock 32,507,730 -- -- 32,507,730
Investments in Affiliates 4,383,694 -- -- 4,383,694
Other Financial Instruments** 209,862 -- -- 209,862
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 46,998,849 $ 34,846,093 $ 329,590 $ 82,174,532
=========================================================================
LifeModel Aggressive
- ---------------------------------------------
Investments in Affiliates $ 112,848,898 $ -- $ -- $ 112,848,898
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 112,848,898 $ -- $ -- $ 112,848,898
=========================================================================
LifeModel Moderately Aggressive
- ---------------------------------------------
Investments in Affiliates $ 206,602,375 $ -- $ -- $ 206,602,375
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 206,602,375 $ -- $ -- $ 206,602,375
=========================================================================
LifeModel Moderate
- ---------------------------------------------
Investments in Affiliates $ 330,027,938 $ -- $ -- $ 330,027,938
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 330,027,938 $ -- $ -- $ 330,027,938
=========================================================================
LifeModel Moderately Conservative
- ---------------------------------------------
Investments in Affiliates $ 62,082,036 $ -- $ -- $ 62,082,036
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 62,082,036 $ -- $ -- $ 62,082,036
=========================================================================
LifeModel Conservative
- ---------------------------------------------
Investments in Affiliates $ 43,604,292 $ -- $ -- $ 43,604,292
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 43,604,292 $ -- $ -- $ 43,604,292
=========================================================================
180
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
FAIR VALUE MEASUREMENT AT 7/31/2009 USING
------------------------------------------------------
QUOTED PRICES
IN ACTIVE MARKETS SIGNIFICANT OTHER SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS VALUE AT
(LEVEL 1) (LEVEL 2) (LEVEL 3) 7/31/09
-------------------------------------------------------------------------
High Yield Bond
- ---------------------------------------------
Corporate Bonds $ -- $ 43,062,265 $ -- $ 43,062,265
Foreign Bonds -- 7,148,358 -- 7,148,358
Preferred Stock 92,094 -- -- 92,094
Investment in
Affiliates 231,361 -- -- 231,361
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 323,455 $ 50,210,623 $ -- $ 50,534,078
=========================================================================
Total Return Bond
- ---------------------------------------------
Asset-Backed Securities Other ABS $ -- $ 8,924,341 $ 680,153 $ 9,604,494
Other -- 16,209,582 -- 16,209,582
Corporate Bonds -- 69,093,317 -- 69,093,317
Foreign Bonds* -- 11,102,215 -- 11,102,215
Mortgage-Backed
Securities Agency Collateral
Other -- -- 2,160,375 2,160,375
CMBS Other -- 29,506,543 3,960,000 33,466,543
CMBS
Subordinated -- 9,266,233 4,316,500 13,582,733
Other -- 60,761,818 -- 60,761,818
U.S. Government
Agency -- 170,866,852 -- 170,866,852
U.S. Treasury
Obligations -- 5,204,806 -- 5,204,806
Preferred Stocks 4,927,110 -- -- 4,927,110
Demand Notes -- 799,546 -- 799,546
Investment in Affiliates 10,075,825 -- -- 10,075,825
Other Financial
Instruments** 365,872 -- -- 365,872
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 15,368,807 $ 381,735,253 $ 11,117,028 $ 408,221,088
=========================================================================
Short Term Bond
- ---------------------------------------------
Asset-Backed
Securities $ -- $ 25,033,963 $ -- $ 25,033,963
Corporate Bonds -- 51,797,319 -- 51,797,319
Foreign Bonds* -- 4,848,580 -- 4,848,580
Mortgage-Backed
Securities -- 42,240,207 -- 42,240,207
Municipal Bonds -- 276,928 -- 276,928
U.S. Government
Agencies -- 95,137,475 -- 95,137,475
U.S. Treasury
Obligations -- 2,828,049 -- 2,828,049
Investment in
Affiliates 7,961,361 -- -- 7,961,361
Other Financial
Instruments** (8,394) -- -- (8,394)
- --------------------------------------------- -------------------------------------------------------------------------
Total $ 7,952,967 $ 222,162,521 $ -- $ 230,115,488
=========================================================================
* Refer to Schedules of Investments for further information by industry/type
and country.
** Other financial instruments include open futures contracts which were
valued at the unrealized appreciation/(depreciation) on the instrument.
The following is a reconciliation of the fair value measurements using
significant unobservable inputs for the Fund during the year ended July 31,
2009:
TOTAL
TOTAL CHANGE IN TRANSFERS
BEGINNING NET ACCRUED REALIZED UNREALIZED IN AND/OR ENDING
BALANCE PURCHASES DISCOUNTS GAINS APPRECIATION OUT OF BALANCE
QUALITY GROWTH 7/31/2008 (SALES) (PREMIUMS) (LOSSES) (DEPRECIATION) LEVEL 3 07/31/2009
- --------------------------------------------------------------------------------------------------------------------------------
Asset Backed Securities
- --------------------------------------------------------------------------------------------------------------------------------
Other ABS $ -- $ (7,784) $ 3,534 $ 705 $ (30,164) $ 63,672 $ 29,963
- --------------------------------------------------------------------------------------------------------------------------------
Total $ -- $ (7,784) $ 3,534 $ 705 $ (30,164) $ 63,672 $ 29,963
181
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
TOTAL
TOTAL CHANGE IN TRANSFERS
BEGINNING NET ACCRUED REALIZED UNREALIZED IN AND/OR ENDING
BALANCE PURCHASES DISCOUNTS GAINS APPRECIATION OUT OF BALANCE
STRATEGIC INCOME 7/31/2008 (SALES) (PREMIUMS) (LOSSES) (DEPRECIATION) LEVEL 3 07/31/2009
- --------------------------------------------------------------------------------------------------------------------------------
Asset Backed Securities
- --------------------------------------------------------------------------------------------------------------------------------
Other ABS $ -- $ (85,627) $ 41,462 $ 7,570 $ (334,208) $ 700,393 $ 329,590
- --------------------------------------------------------------------------------------------------------------------------------
Total $ -- $ (85,627) $ 41,462 $ 7,570 $ (334,208) $ 700,393 $ 329,590
TOTAL
TOTAL CHANGE IN TRANSFERS
BEGINNING NET ACCRUED REALIZED UNREALIZED IN AND/OR ENDING
BALANCE PURCHASES DISCOUNTS GAINS APPRECIATION OUT OF BALANCE
TOTAL RETURN BOND 7/31/2008 (SALES) (PREMIUMS) (LOSSES) (DEPRECIATION) LEVEL 3 07/31/2009
- --------------------------------------------------------------------------------------------------------------------------------
Asset Backed Securities
Other ABS $ 429,095 $ (393,864) $ 82,171 $(3,938,200) $ 3,334,510 $ 1,166,441 $ 680,153
Mortgage Backed Securities
Agency Collateral Other -- -- 2 -- (1,462,127) 3,622,500 2,160,375
CMBS Other -- -- -- -- 13,520 3,946,480 3,960,000
CMBS Subordinated -- -- -- -- 388,372 3,928,128 4,316,500
-----------------------------------------------------------------------------------------------
Total $ 429,095 $ (393,864) $ 82,173 $(3,938,200) $ 2,274,275 $12,663,549 $ 11,117,028
(12) FAIR VALUE OF DERIVATIVE INSTRUMENTS*
The following is a summary of the fair valuations of the Funds' derivative
instruments categorized by risk exposure:
STRUCTURED LARGE CAP PLUS FUND
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities
as of July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Assets Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin receivable** $ -- $ -- $ -- $ 227,621 $ -- $ 227,621
=================================================================================================================
Liabilities Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin payable** $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================
The Effect of Derivative Instruments on the Statement of Operations for the Six
Months Ended July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Realized Gain/(Loss) on Derivatives Recognized in Income
Net realized gain/(loss) on futures
contracts $ -- $ -- $ -- $ (43,098) $ -- $ (43,098)
- -----------------------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ (43,098) $ -- $ (43,098)
=================================================================================================================
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income
Net change in unrealized
appreciation/(depreciation)
on futures contracts $ -- $ -- $ -- $ 615,840 $ -- $ 615,840
- -----------------------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ 615,840 $ -- $ 615,840
=================================================================================================================
182
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities
as of July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Assets Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin receivable** $ -- $ -- $ -- $ 428,294 $ -- $ 428,294
=================================================================================================================
Liabilities Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin payable** $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================
The Effect of Derivative Instruments on the Statement of Operations for the Six
Months Ended July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Realized Gain/(Loss) on Derivatives Recognized in Income
Net realized gain/(loss) on
futures
contracts $ -- $ -- $ -- $ 625,832 $ -- $ 625,832
- -----------------------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ 625,832 $ -- $ 625,832
=================================================================================================================
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income
Net change in unrealized
appreciation/(depreciation)
on futures contracts $ -- $ -- $ -- $ 777,058 $ -- $ 777,058
- -----------------------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ 777,058 $ -- $ 777,058
=================================================================================================================
INTERNATIONAL EQUITY FUND
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities
as of July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Assets Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin receivable** $ -- $ 98,676 $ -- $ 308,799 $ -- $ 407,475
=================================================================================================================
Liabilities Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin payable** $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================
The Effect of Derivative Instruments on the Statement of Operations for the Six
Months Ended July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Realized Gain/(Loss) on Derivatives Recognized in Income
Net realized gain/(loss) on
futures
contracts $ -- $ 171,281 $ -- $ 745,661 $ -- $ 916,942
- -----------------------------------------------------------------------------------------------------------------
$ -- $ 171,281 $ -- $ 745,661 $ -- $ 916,942
=================================================================================================================
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized
in Income
Net change in unrealized
appreciation/(depreciation) on
futures contracts $ -- $ 554,497 $ -- $ 918,026 $ -- $ 1,472,523
- -----------------------------------------------------------------------------------------------------------------
$ -- $ 554,497 $ -- $ 918,026 $ -- $ 1,472,523
=================================================================================================================
183
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities
as of July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Assets Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin receivable** $ -- $ 235,851 $ -- $ -- $ -- $ 235,851
=================================================================================================================
Liabilities Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin payable** $ (25,989) $ -- $ -- $ -- $ -- $ (25,989)
=================================================================================================================
The Effect of Derivative Instruments on the Statement of Operations for the Six
Months Ended July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Realized Gain/(Loss) on Derivatives Recognized in Income
Net realized gain/(loss) on
foreign currency
transactions $ -- $ 179,184 $ -- $ -- $ -- $ 179,184
- -----------------------------------------------------------------------------------------------------------------
$ -- $ 179,184 $ -- $ -- $ -- $ 179,184
=================================================================================================================
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income
Net change in unrealized
appreciation/(depreciation)
on futures contracts $ 209,862 $ -- $ -- $ -- $ -- $ 209,862
Net change in unrealized
appreciation/(depreciation)
on translation of assets
and liabilities denominated
in foreign currencies -- (171,117) -- -- -- (171,117)
- -----------------------------------------------------------------------------------------------------------------
$ 209,862 $ (171,117) $ -- $ -- $ -- $ 38,745
=================================================================================================================
TOTAL RETURN BOND FUND
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities
as of July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Assets Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin receivable** $ 365,872 $ -- $ -- $ -- $ -- $ 365,872
=================================================================================================================
Liabilities Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin payable** $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================
The Effect of Derivative Instruments on the Statement of Operations for the Six
Months Ended July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Realized Gain/(Loss) on Derivatives Recognized in Income
Net realized gain/(loss) on
futures
contracts $(1,395,249) $ -- $ -- $ -- $ -- $(1,395,249)
- -----------------------------------------------------------------------------------------------------------------
Net realized gain/(loss) on
foreign
currency transactions -- 471,537 -- -- -- 471,537
- -----------------------------------------------------------------------------------------------------------------
$(1,395,249) $ 471,537 $ -- $ -- $ -- $ (923,712)
=================================================================================================================
184
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
TOTAL RETURN BOND FUND, CONTINUED
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized
in Income
Net change in unrealized
appreciation/(depreciation)
on futures contracts $ 543,471 $ -- $ -- $ -- $ -- $ 543,471
Net change in unrealized
appreciation/(depreciation) on
translation of assets and
liabilities
denominated in foreign
currencies -- (450,309) -- -- -- (450,309)
- -----------------------------------------------------------------------------------------------------------------
$ 543,471 $ (450,309) $ -- $ -- $ -- $ 93,162
=================================================================================================================
SHORT TERM BOND FUND
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities
as of July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Assets Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin receivable** $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================
Liabilities Derivatives
- -----------------------------------------------------------------------------------------------------------------
Variation margin payable** $ (8,394) $ -- $ -- $ -- $ -- $ (8,394)
=================================================================================================================
The Effect of Derivative Instruments on the Statement of Operations for the Six
Months Ended July 31, 2009:
DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER STATEMENT 133
------------------------------------------------------------------
INTEREST FOREIGN
RATE EXCHANGE CREDIT EQUITY OTHER
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS TOTAL
- -----------------------------------------------------------------------------------------------------------------
Realized Gain/(Loss) on Derivatives Recognized in Income
Net realized gain/(loss) on
futures
contracts $ 322,225 $ -- $ -- $ -- $ -- $ 322,225
- -----------------------------------------------------------------------------------------------------------------
$ 322,225 $ -- $ -- $ -- $ -- $ 322,225
=================================================================================================================
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income
Net change in unrealized
appreciation/(depreciation) on
futures contracts $(159,259) $ -- $ -- $ -- $ -- $ (159,259)
- -----------------------------------------------------------------------------------------------------------------
$(159,259) $ -- $ -- $ -- $ -- $ (159,259)
=================================================================================================================
* See Note 2 - Significant Accounting Policies for additional information.
** The Fair Values of Derivative Instruments may include cumulative
appreciation/(depreciation) of futures contracts as reported in the Notes
to Schedules of Investments. Only the current day's variation margin is
reported in the Statements of Assets and Liabilities.
The derivative instruments outstanding as of July 31, 2009 as disclosed in the
Notes to the Schedules of Investments and the amounts of realized and changes in
unrealized gains and losses on derivative instruments during the period as
disclosed in the Statement of Operations serve as indicators of the volume of
derivative activity for the Funds.
185
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(13) LEHMAN BROTHERS BANKRUPTCY AND DEFAULT ON SECURITIES LENDING
On September 15, 2008, Lehman Brothers (Lehman) filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code. The securities
lending agreements between Lehman and each Fund were terminated by Lehman's
bankruptcy filing and Lehman's failure to return the borrowed securities. Under
the agreements and due to borrower default, each Fund had the right to seize the
collateral pledged by Lehman as security for the borrowed securities. The
collateral was liquidated to fund the cost of replacement securities purchased,
which were the same as the securities that were on loan and not returned. For
financial reporting purposes, the transactions are treated as a sale as of
September 17, 2008 of the original securities recognizing gain (loss) and a new
purchase of replacement securities with a new basis and holding period. For
Federal income tax purposes, however, the Internal Revenue Service concluded in
Revenue Procedure 2008-63 that the purchase of replacement securities will be
considered a non-taxable event (not as a sale and purchase and no recognition of
gain (loss), change in basis or holding period), provided the requirements under
Internal Revenue Code (IRC) Section 1058(b) are met. The Funds believe all
requirements of the Revenue Procedure have been met.
NET REALIZED
GAIN (LOSS)
ON SALE OF
ORIGINAL
SECURITIES
FUND
- --------------- ------------
Small Cap Growth $ (149,891)
Quality Growth (24,861)
Micro Cap Value (78,548)
Small Cap Value (153,200)
Equity Index (248,631)
High Yield Bond (114,109)
(14) SUBSEQUENT EVENTS
In accordance with the provision set forth in FAS 165, management has evaluated
the possibility of subsequent events existing in the Funds' financial statements
through September 22, 2009. Management has determined that there are no
additional material events that would require disclosure in the Funds' financial
statements through this date.
186
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), and Fifth Third Short Term Bond Fund (hereafter collectively referred to
as the "Funds") at July 31, 2009, the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the two
years in the period then ended, 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, 2009 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Kansas City, Missouri
September 22, 2009
187
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT ^
The Trustees and Officers of the Funds, their 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(1) DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------ -------------- --------------- --------------------------- ------------- -------------------
Edward Burke Carey Chairman-Board January Carey Realty Investments, 24 Canisius
Age: 64 of Trustees 1989-Present Inc. (real estate College-Trustee.
development and
consulting), President,
1990-Present.
David J. Durham Trustee June 2001- Chairman of Clipper 24 None
Age: 64 Present Products, Inc., a wholesale
distributor, 2005-Present.
Chairman of Norris Products
Corp., a wholesale
distributor, 2005-Present.
President and Chief
Executive Officer of
Clipper Products, Inc.,
1997-Present.
J. Joseph Hale Jr. Trustee March EVP and Managing Director, 24 Trustee for Hanover
Age: 59 2001-Present DHR International College. National
(executive recruiter), Underground Freedom
April 2007-Present. Center, The
Consultant, Duke Energy, Cincinnati Zoo, The
April 2006-March 2007. Ohio Arts Council,
President, Cinergy The Cincinnati
Foundation, November Parks Foundation,
2001-March 2006. and Playhouse in
the Park.
John E. Jaymont Trustee October AVP, PIANKO, Feb. 2002- 24 Printing Industries
Age: 64 2001- Present Present. Business of America: Web
Management Consultant, Offset Assoc.,
April 2000-February 2002. Director; Master
Printers of
America, Director.
David J. Gruber Trustee December President, DJG Financial 24 None
Age: 45 2003-Present Consulting (accounting and
finance consultant), June
2007-Present. Resources
Global Professionals,
Project Professional,
December 2004-June 2007.
Ohio Arts & Sports
Facilities Commission
(state funding oversight
agency), CFO, April
2003-December 2004. Ohio
Expositions Commission
(state fair and expo
center), Finance Director,
April 1996-March 2003.
^ Additional disclosure can be found in the Statement of Additional
Information, which can be obtained by calling 1-800-282-5706.
188
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(1) DURING THE PAST 5 YEARS
- -------------------- ------------------- ------------ -------------------------------------
E. Keith Wirtz President April President, Fifth Third Asset
Age: 49 2007-Present Management, Inc. 2003- Present,
Managing Partner, Paladin Investment
Associates, LLC, 2000-2003.
Matthew A. Ebersbach Vice President March Vice President of Fifth Third Bank
Age: 39 2006-Present since 2001.
Richard B. Ille Vice President April Managing Director, Products and
Age: 44 2007-Present Marketing, Fifth Third Asset
Management, Inc., 2001-Present.
James A. Mautino Anti-Money February Vice President and Chief Compliance
Age: 41 Laundering and 2007-Present Officer, Fifth Third Asset
Chief Compliance Management, Inc. August
Officer 2005-Present, Director of Risk and
Compliance, State Street Bank and
Trust Company, October 1995-July
2005.
Shannon King Treasurer March Vice President, Fifth Third Asset
Age: 37 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 April Vice President and Counsel of Fifth
Age: 36 2007-Present Third Bank, March 2006 to Present.
Attorney, Kirkpatrick & Lockhart
Nicholson Graham, LLP, May
2005-March 2006. Counsel, The
Phoenix Companies, Inc., July
2002-April 2005. Assistant Vice
President and Assistant Counsel,
Conseco Capital Management, Inc.,
December 2000-June 2002.
Ryan Casey Assistant Treasurer April Assistant Vice President, State
Age: 36 2009-Present Street Bank and Trust Company (a
Massachusetts trust company) from
2000 to Present.
Tracy Kaufman Assistant Treasurer June Assistant Vice President, State
Age: 50 2007-Present Street Bank and Trust Company (a
Massachusetts trust company) from
1986 to Present.
Francine S. Hayes Assistant Secretary June Vice President and Counsel, State
Age: 41 2007-Present Street 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.
(1) Each Trustee serves until the election and qualification of a successor,
or until death, resignation, retirement or removal as provided in the
Trust's Amended and Restated Declaration of Trust. Retirement occurs on
the last day of the fiscal year in which the Trustee's 72nd birthday
occurs. The Trust's Officers are elected annually by the Trustees.
189
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
ADDITIONAL TAX INFORMATION
For the taxable year ended July 31, 2009, the following percentage of income
dividends paid by the Fund qualify for the dividends received deduction
available to corporations:
PERCENTAGE
-------------
Quality Growth 88%
Dividend Growth 100%
Micro Cap Value 96%
Small Cap Value 100%
All Cap Value 100%
Disciplined Large Cap Value 100%
Structured Large Cap Plus 100%
Equity Index 100%
Strategic Income 30%
LifeModel Aggressive(SM) 35%
LifeModel Moderately Aggressive(SM) 21%
LifeModel Moderate(SM) 12%
LifeModel Moderately Conservative(SM) 8%
LifeModel Conservative(SM) 3%
For the fiscal year ended July 31, 2009, 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 2009, complete information will be reported on shareholders' 2009
Form 1099-DIV. The Funds hereby designate up to the maximum amount allowable as
qualified dividend income for the fiscal year ended July 31, 2009:
AMOUNT
-------------
Quality Growth $ 1,574,868
Dividend Growth 241,615
Micro Cap Value 170,731
Small Cap Value 1,145,340
All Cap Value 3,208,122
Disciplined Large Cap Value 9,918,422
Structured Large Cap Plus 2,273,281
Equity Index 6,779,041
International Equity 9,151,161
Strategic Income 2,636,618
LifeModel Aggressive(SM) 837,118
LifeModel Moderately Aggressive(SM) 1,120,468
LifeModel Moderate(SM) 1,229,855
LifeModel Moderately Conservative(SM) 174,516
LifeModel Conservative(SM) 53,758
190
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
The Funds designate the following amounts or maximum amounts allowable 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
-------------
Mid Cap Growth $ 18,599,504
Quality Growth 12,504,389
Micro Cap Value 12,489
Small Cap Value 20,850
All Cap Value 12,448,038
Disciplined Large Cap Value 6,405,451
International Equity 42,624,633
Strategic Income 92,440
LifeModel Aggressive(SM) 14,443,499
LifeModel Moderately Aggressive(SM) 19,285,785
LifeModel Moderate(SM) 18,699,879
LifeModel Moderately Conservative(SM) 3,848,615
LifeModel Conservative(SM) 817,947
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, 2009 are as follows:
FOREIGN FOREIGN
SOURCE TAX
INCOME EXPENSE
--------- --------
International Equity $ 0.32 $ 0.02
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 2009. These
shareholders will receive more detailed information along with their 2009 Form
1099-DIV.
191
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, 2009 through July 31,
2009.
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, an $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.
The expense ratio may vary period to period because of various factors, as a
result of expenses incurred that are outside the cap (such as dividends on
securities sold short, extraordinary expenses and interest expense.)
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
----------- ---------- ---------------- ----------------
Small Cap Growth Institutional Shares $ 1,000.00 $ 1,282.70 $ 5.72 1.01%
Class A Shares 1,000.00 1,283.40 7.13 1.26%
Class B Shares 1,000.00 1,277.90 11.35 2.01%
Class C Shares 1,000.00 1,277.20 11.35 2.01%
Mid Cap Growth Institutional Shares 1,000.00 1,281.00 5.26 0.93%
Class A Shares 1,000.00 1,279.40 6.67 1.18%
Class B Shares 1,000.00 1,276.10 10.89 1.93%
Class C Shares 1,000.00 1,273.50 10.88 1.93%
Quality Growth Institutional Shares 1,000.00 1,191.60 5.76 1.06%
Class A Shares 1,000.00 1,190.09 7.11 1.31%
Class B Shares 1,000.00 1,185.10 11.16 2.06%
Class C Shares 1,000.00 1,184.80 11.16 2.06%
Dividend Growth Institutional Shares 1,000.00 1,052.40 3.95 0.74%
Class A Shares 1,000.00 1,149.90 5.28 0.99%
Class B Shares 1,000.00 1,146.20 9.26 1.74%
Class C Shares 1,000.00 1,146.30 9.26 1.74%
Micro Cap Value Institutional Shares 1,000.00 1,378.70 7.96 1.35%
Class A Shares 1,000.00 1,380.70 9.44 1.60%
Class B Shares 1,000.00 1,375.60 13.84 2.35%
Class C Shares 1,000.00 1,373.70 13.83 2.35%
Small Cap Value Institutional Shares 1,000.00 1,298.70 6.84 1.20%
Class A Shares 1,000.00 1,296.70 8.26 1.45%
Class B Shares 1,000.00 1,292.50 12.51 2.20%
Class C Shares 1,000.00 1,292.70 12.51 2.20%
Alli Cap Value Institutional Shares 1,000.00 1,236.20 6.32 1.14%
Class A Shares 1,000.00 1,234.90 7.70 1.39%
Class B Shares 1,000.00 1,229.30 11.83 2.14%
Class C Shares 1,000.00 1,228.90 11.83 2.14%
- ----------
* 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.
192
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
----------- ---------- ---------------- ----------------
Disciplined Large Cap Value Institutional Shares $ 1,000.00 $ 1,197.30 $ 5.23 0.96%
Class A Shares 1,000.00 1,196.70 6.59 1.21%
Class B Shares 1,000.00 1,192.50 10.65 1.96%
Class C Shares 1,000.00 1,191.70 10.65 1.96%
Structured Large Cap Plus Institutional Shares 1,000.00 1,119.40 9.77 1.86%
Class A Shares 1,000.00 1,119.60 10.72 2.04%
Class B Shares 1,000.00 1,113.60 14.83 2.83%
Class C Shares 1,000.00 1,115.10 11.80 2.25%
Equity Index Institutional Shares 1,000.00 1,210.50 1.04 0.19%
Class A Shares 1,000.00 1,209.90 2.41 0.44%
Class B Shares 1,000.00 1,204.90 6.51 1.19%
Class C Shares 1,000.00 1,205.00 6.51 1.19%
Select shares 1,000.00 1,210.90 1.48 0.27%
Preferred Shares 1,000.00 1,209.80 1.86 0.34%
Trust Shares 1,000.00 1,209.80 2.41 0.44%
International Equity Institutional Shares 1,000.00 1,318.20 7.07 1.23%
Class A Shares 1,000.00 1,314.00 8.49 1.48%
Class B Shares 1,000.00 1,310.50 12.78 2.23%
Class C Shares 1,000.00 1,310.80 12.78 2.23%
Strategic Income Institutional Shares 1,000.00 1,238.10 5.11 0.92%
Class A Shares 1,000.00 1,235.90 6.49 1.17%
Class B Shares 1,000.00 1,231.50 10.62 1.92%
Class C Shares 1,000.00 1,233.70 10.63 1.92%
LifeModel Aggressive(SM) Institutional Shares 1,000.00 1,209.90 0.44 0.08%
Class A Shares 1,000.00 1,210.20 1.81 0.33%
Class B Shares 1,000.00 1,205.80 5.91 1.08%
Class C Shares 1,000.00 1,204.40 5.90 1.08%
LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 1,174.90 0.43 0.08%
Class A Shares 1,000.00 1,172.40 1.78 0.33%
Class B Shares 1,000.00 1,168.70 5.81 1.08%
Class C Shares 1,000.00 1,170.00 5.81 1.08%
LifeModel Moderate(SM) Institutional Shares 1,000.00 1,140.70 0.42 0.08%
Class A Shares 1,000.00 1,139.40 1.75 0.33%
Class B Shares 1,000.00 1,136.00 5.72 1.08%
Class C Shares 1,000.00 1,134.50 5.72 1.08%
LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 1,131.30 0.42 0.08%
Class A Shares 1,000.00 1,130.20 1.74 0.33%
Class B Shares 1,000.00 1,126.40 5.69 1.08%
Class C Shares 1,000.00 1,126.30 5.69 1.08%
LifeModel Conservative(SM) Institutional Shares 1,000.00 1,096.70 0.42 0.08%
Class A Shares 1,000.00 1,095.50 1.71 0.33%
Class B Shares 1,000.00 1,091.90 5.60 1.08%
Class C Shares 1,000.00 1,091.80 5.60 1.08%
High Yield Bond Institutional Shares 1,000.00 1,292.50 4.21 0.74%
Class A Shares 1,000.00 1,290.00 5.62 0.99%
Class B Shares 1,000.00 1,286.60 9.86 1.74%
Class C Shares 1,000.00 1,286.60 9.86 1.74%
Total Return Bond Institutional Shares 1,000.00 1,069.70 3.34 0.65%
Class A Shares 1,000.00 1,067.10 4.61 0.90%
Class B Shares 1,000.00 1,064.40 8.45 1.65%
Class C Shares 1,000.00 1,063.10 8.44 1.65%
Short Term Bond Institutional Shares 1,000.00 1,053.30 3.26 0.64%
Class A Shares 1,000.00 1,052.10 4.53 0.89%
Class C Shares 1,000.00 1,047.40 8.33 1.64%
- ----------
* 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.
193
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.
The expense ratio may vary period to period because of various factors, as a
result of expenses incurred that are outside the cap (such as dividends on
securities sold short, extraordinary expenses and interest expense.)
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
----------- ---------- ---------------- ----------------
Small Cap Growth Institutional Shares $ 1,000.00 $ 1,019.79 $ 5.06 1.01%
Class A Shares 1,000.00 1,018.55 6.31 1.26%
Class B Shares 1,000.00 1,014.83 10.04 2.01%
Class C Shares 1,000.00 1,014.83 10.04 2.01%
Mid Cap Growth Institutional Shares 1,000.00 1,020.18 4.66 0.93%
Class A Shares 1,000.00 1,018.94 5.91 1.18%
Class B Shares 1,000.00 1,015.22 9.64 1.93%
Class C Shares 1,000.00 1,015.22 9.64 1.93%
Quality Growth Institutional Shares 1,000.00 1,019.54 5.31 1.06%
Class A Shares 1,000.00 1,018.30 6.56 1.31%
Class B Shares 1,000.00 1,014.58 10.29 2.06%
Class C Shares 1,000.00 1,014.58 10.29 2.06%
Dividend Growth Institutional Shares 1,000.00 1,021.12 3.71 0.74%
Class A Shares 1,000.00 1,019.89 4.96 0.99%
Class B Shares 1,000.00 1,016.17 8.70 1.74%
Class C Shares 1,000.00 1,016.17 8.70 1.74%
Micro Cap Value Institutional Shares 1,000.00 1,018.10 6.76 1.35%
Class A Shares 1,000.00 1,016.86 8.00 1.60%
Class B Shares 1,000.00 1,013.14 11.73 2.35%
Class C Shares 1,000.00 1,013.14 11.73 2.35%
Small Cap Value Institutional Shares 1,000.00 1,018.84 6.01 1.20%
Class A Shares 1,000.00 1,017.60 7.25 1.45%
Class B Shares 1,000.00 1,013.88 10.99 2.20%
Class C Shares 1,000.00 1,013.88 10.99 2.20%
All Cap Value Institutional Shares 1,000.00 1,019.14 5.71 1.14%
Class A Shares 1,000.00 1,017.90 6.95 1.39%
Class B Shares 1,000.00 1,014.18 10.69 2.14%
Class C Shares 1,000.00 1,014.18 10.69 2.14%
Disciplined Large Cap Value Institutional Shares 1,000.00 1,020.03 4.81 0.96%
Class A Shares 1,000.00 1,018.79 6.06 1.21%
Class B Shares 1,000.00 1,015.08 9.79 1.96%
Class C Shares 1,000.00 1,015.08 9.79 1.96%
- ----------
* 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.
194
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
----------- ---------- ---------------- ----------------
Structured Large Cap Plus Institutional Shares $ 1,000.00 $ 1,015.57 $ 9.30 1.86%
Class A Shares 1,000.00 1,014.68 10.19 2.04%
Class B Shares 1,000.00 1,010.76 14.11 2.83%
Class C Shares 1,000.00 1,013.64 11.23 2.25%
Equity Index Institutional Shares 1,000.00 1,023.85 0.95 0.19%
Class A Shares 1,000.00 1,022.61 2.21 0.44%
Class B Shares 1,000.00 1,018.89 5.96 1.19%
Class C Shares 1,000.00 1,018.89 5.96 1.19%
Select shares 1,000.00 1,023.46 1.35 0.27%
Preferred Shares 1,000.00 1,023.11 1.71 0.34%
Trust Shares 1,000.00 1,022.61 2.21 0.44%
International Equity Institutional Shares 1,000.00 1,018.70 6.16 1.23%
Class A Shares 1,000.00 1,017.46 7.40 1.48%
Class B Shares 1,000.00 1,013.74 11.13 2.23%
Class C Shares 1,000.00 1,013.74 11.13 2.23%
Strategic Income Institutional Shares 1,000.00 1,020.23 4.61 0.92%
Class A Shares 1,000.00 1,018.99 5.86 1.17%
Class B Shares 1,000.00 1,015.27 9.59 1.92%
Class C Shares 1,000.00 1,015.27 9.59 1.92%
LifeModel Aggressive(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
LifeModel Moderately Aggressive(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
LifeModel Moderate(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
LifeModel Moderately Conservative(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
LifeModel Conservative(SM) Institutional Shares 1,000.00 1,024.40 0.40 0.08%
Class A Shares 1,000.00 1,023.16 1.66 0.33%
Class B Shares 1,000.00 1,019.44 5.41 1.08%
Class C Shares 1,000.00 1,019.44 5.41 1.08%
High Yield Bond Institutional Shares 1,000.00 1,021.12 3.71 0.74%
Class A Shares 1,000.00 1,019.89 4.96 0.99%
Class B Shares 1,000.00 1,016.17 8.70 1.74%
Class C Shares 1,000.00 1,016.17 8.70 1.74%
- ----------
* 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.
195
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
----------- ---------- ---------------- ----------------
Total Return Bond Institutional Shares $ 1,000.00 $ 1,021.57 $ 3.26 0.65%
Class A Shares 1,000.00 1,020.33 4.51 0.90%
Class B Shares 1,000.00 1,016.61 8.25 1.65%
Class C Shares 1,000.00 1,016.61 8.25 1.65%
Short Term Bond Institutional Shares 1,000.00 1,021.62 3.21 0.64%
Class A Shares 1,000.00 1,020.38 4.46 0.89%
Class C Shares 1,000.00 1,016.66 8.20 1.64%
- ----------
* 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.
196
ADDRESSES
- --------------------------------------------------------------------------------
Fifth Third Funds Fifth Third Funds
38 Fountain Square Plaza
Cincinnati, Ohio 45202
- --------------------------------------------------------------------------------
Investment Advisor, Administrator and Fifth Third Asset Management, Inc.
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 1100 Walnut, Suite 1300
Kansas City, MO 64106
- --------------------------------------------------------------------------------
Advised by:
[LOGO FTAM]
FIFTH THIRD ASSET MANAGEMENT
[LOGO] BEYOND THE TRADITIONAL
FTF1866073110 1-800-282-5706 AR-STBD-09
FIFTH THIRD FUNDS
2009
MONEY MARKET MUTUAL FUNDS
Annual Report to Shareholders
July 31, 2009
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 will 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 filed
on Form N-Q and 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 ..................... 18
Statements of Operations .............. 19
Statements of Changes
in Net Assets ....................... 20
Financial Highlights .................. 24
Notes to Financial Statements ......... 29
Report of Independent Registered
Public Accounting Firm .............. 37
Supplemental Information .............. 38
Capitalizing on a nearly complete reversal in investor sentiment, global
markets enjoyed significant rallies in equities and many fixed income
investments over the past five months. This rally, however, did not overcome
the deep losses sustained during the first seven months of the 12-month period
ended July 31, 2009, and many Fifth Third Funds finished the fiscal year with
losses.
Within the stock market, results reported during the 12-month period included:
o A 19.96% decline for the S&P 500 Index(1) of large cap stocks.
o A 20.25% decline for the S&P 400 Index(1) of mid cap stocks.
o A 19.26% decline for the S&P 600 Index(1) of small cap stocks.
o A 22.60% drop for the MSCI EAFE(1) Index of international stocks.
Fear dominated the first portion of the period as credit markets seized, an
economic recession swept across the globe, and Wall Street icons toppled. Few
investments outside of U.S. Treasury bonds, the U.S. dollar, and gold generated
positive returns. In early March, the clouds lifted and signs of life in the
U.S. economy restored a sense of optimism among investors. In turn, domestic
stocks, international equities, non-Treasury bonds, and commodities vaulted
higher through the spring and first part of the summer.
To recap, a number of factors buffeted the world's financial markets during the
recently concluded 12-month period, including:
1. The global economic recession. Many countries around the world joined the
U.S. in reporting multiple quarters of economic contraction. Crashing real
estate markets, shrinking consumption rates, and rising unemployment led to
weakened financial markets, reduced production, and falloffs in consumer
spending. By the closing months of the period, however, many rates of
decline were stabilizing and production was picking up in key Asian
markets.
2. Aggressively responsive governments. Deteriorating conditions in the U.S.
financial markets drew a flurry of relief efforts from the federal
government. Aid packages for troubled banks, mortgage agencies, and
taxpayers, among others, injected billions of dollars into the economy. Yet
the federal deficit ballooned, stirring debates over the potential of
inflation in the not-too-distant future, especially since officials around
the globe have enacted similar programs.
3. A topsy-turvy bond market. As investors faced many unknowns through the
first half of the fiscal year, fixed income markets were all but shut down.
From mortgage-backed securities, which tumbled along with the slumping
housing market, to the highest quality corporate bonds, which weakened as
the new-issue market dried up, essentially any debt instrument outside of
U.S. Treasury issues struggled. Many non-Treasury debentures recovered
nicely in 2009, however, as issuers benefited from a near-zero short-term
lending rate from the Federal Reserve, large infusions of government
support, and increasing optimism about the economy.
4. Commodity market volatility. Oil prices dropped more than $100 a barrel
during the first half of the period, but regained more than 70% from the
fiscal year lows during the second half. Base metals such as copper
followed a similar path as prices reflected sentiment over the global
economy. Natural gas lagged the market due to a worldwide supply glut, but
few expect prices to remain depressed for long.
5. Fluctuating risk appetites. Through the first seven months of the period,
many investors, facing a dizzying array of negatives, avoided any
investments holding a trace of risk. As a result, U.S. Treasury bonds
soared to historic highs in late December as corporate bonds
1
plummeted--most notably in the high yield space--and stocks followed by
touching a multi-year low in early March. Risk tolerance turned in early
March, however, and low quality investments led a rally through the balance
of the period in both the stock and bond markets.
The broader trends also were reflected in the fixed income market, where U.S.
Treasury issues, which generally benefit from flights to safety, thrived during
2008. As investor fears gradually diminished following the New Year, however,
previously beaten down mortgage-related debt and high yield bonds soared
through July. Yields on cash investments reflected the Fed's historic reduction
in its primary interest rate, and the yield curve grew increasingly more
pitched as inflationary worries blossomed and drove long-term rates higher.
Investment professionals are well versed in the market's potential for
volatility. I believe very few, however, could have foreseen the incredible
swings we experienced over the past 12 months. Such an experience serves as a
reminder that investments may recover and reward patient investors for
maintaining a long-term perspective.
Within the Fifth Third Funds, many of our portfolio managers were admittedly
exasperated with developments over the past 12 months. In the face of such
unprecedented challenges, this is not unexpected. Instead of veering from
time-tested strategies built around fundamentally sound high quality stocks and
bonds, each manager reassessed his or her portfolio to ensure it continued to
meet our core investment philosophy. As a result, each stock and bond Fund
remained focused on its mission to provide shareholders with solid long-term
returns, and each Money Market Fund successfully maintained the standard $1.00
net asset value while offering short-term returns and liquidity for
shareholders.
Looking ahead, our expectations on the macro front include:
o Increased sense of normalcy in the bond markets with riskier issues trading
in closer correlation to U.S. Treasury debt.
o Increasing attention to the potential for inflation due to the level of
debt issued by the U.S. Government.
o A gradual improvement in U.S. corporate earnings.
o Range-bound returns from domestic stocks with the potential for an upswing
in late 2009.
o Increasing signs of recovery in the U. S. economy through the second half
of 2009, leading to a modest growth rate in the Gross Domestic Product.
o Stabilization in the U. S. housing market.
o Continued retrenchment by U. S. consumers, resulting in a higher personal
savings rate and lower spending levels.
In closing, the past 12 months have proven unsettling for investors at both the
market's highs and lows. As a result, I can understand why some would question
the viability of an investment plan. History shows, however, that high quality,
fundamentally sound stocks and bonds consistently perform well in a variety of
market environments. By investing in Fifth Third Funds, we believe such
holdings represent the foundation of your portfolio.
Thank you for your continued confidence in Fifth Third Funds.
/s/ E. Keith Wirtz
E. Keith Wirtz, CFA
President
(1)TERMS AND DEFINITIONS
THE S&P 500 STOCK 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 S&P MIDCAP 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 S&P SMALLCAP 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.
DURATION is the weighted average maturity of a bond's cash flow.
2
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (UNAUDITED)
MONEY MARKET FUNDS
For the 12-month period ended July 31, 2009, the Fifth Third Money Market Funds
offered historically low yields on an absolute basis. This was the direct
result of an unprecedented monetary policy by the Federal Reserve Bank's
Federal Open Market Committee (FOMC).
During the opening months of the period, the FOMC, in response to the credit
and liquidity crisis, gradually reduced the Federal Funds target rate, cutting
it from 2.00% to a range of 0.00% to 0.25% on December 16, 2008. For the
balance of the fiscal year, the FOMC maintained the low rate.
Poor credit market and economic conditions resulted in significant stress
across the financial industry throughout the period. The pain was particularly
sharp among money market funds as many fund sponsors were forced to provide
financial support to maintain the standard $1.00 net asset value (NAV),
especially after Lehman Brothers Holdings, Inc. declared bankruptcy in
mid-September. Shortly thereafter, the U.S. Department of the Treasury
("Treasury") announced the Temporary Guarantee Program for Money Market Funds,
which provided a $1.00 NAV guarantee to certain shareholders of participating
money market funds. Although none of the Fifth Third Money Market Funds have
required outside support to maintain the $1.00 NAV, the Funds participated in
the federal program, which expired on September 18, 2009.
The details of the program are as follows:
o The U. S. Treasury Temporary Guarantee Program provides a guarantee to
money market mutual fund shareholders of participating money market funds
based on the number of shares invested in the fund at the close of business
on September 19, 2008.
o Any increase in the number of shares an investor holds after the close of
business on September 19, 2008, will not be guaranteed.
o If a customer closes his/her account with a fund or broker-dealer, any
future investment in the fund will not be guaranteed. If the number of
shares an investor holds fluctuates over the period, the investor will be
covered for either the number of shares held as of the close of business on
September 19, 2008, or the current amount, whichever is less.
o The Program expired on September 18, 2009.
In an effort to restore capital market liquidity and confidence, an assortment
of U.S. government entities established a series of landmark initiatives during
the period. The Treasury, Congress, and the Federal Deposit Insurance
Corporation joined the Federal Reserve Bank in providing cash and government
backing to institutions ranging from commercial paper issuers to agencies
contending with backlogs of toxic debt. The programs contributed to a
significant downward shift in the yield curve, with historically low short-term
rates and higher yields on longer-term issues. Conditions proved precarious for
money market funds generally, which contended with risks in reinvesting proceeds
from maturing securities and challenges in delivering positive net yields.
As for the Fifth Third Money Market Funds, a longer duration strategy designed
to capture additional yield proved beneficial as interest rates declined.
Duration measures the price sensitivity of cash flows to changes in interest
rates. Subsequently, the Funds continued to heavily utilize more traditional,
liquid money market securities such as discount notes issued by the Treasury
and government agencies, commercial paper and repurchase agreements,
particularly in the Fifth Third U.S. Treasury Money Market Fund and the Fifth
Third Institutional Government Money Market Fund. Higher yields on floating
interest rate securities also enhanced returns, while the additional liquidity
allowed the Funds to readily cope with consistently volatile cash flows.
The Fifth Third Institutional Money Market and Fifth Third Prime Money Market
Funds maintained a conservative investment style with an emphasis on highly
liquid government and Industrials sector securities and a relative underweight
in asset-backed commercial paper, brokerage, and European banking sector
securities.
MATURITY COMPOSITION AS OF JULY 31, 2009
- ------------------------------------------------------------
Weighted Average Maturity(#)
- ------------------------------------------------------------
DAYS DAYS
AS OF 7/31/09 AS OF 7/31/08
=========================== ================== =============
Fifth Third Prime 49 48
Money Market
- --------------------------- ------------------ -------------
Fifth Third Institutional 54 47
Money Market
- --------------------------- ------------------ -------------
Fifth Third Institutional 50 58
Government Money
Market
- --------------------------- ------------------ -------------
Fifth Third U.S. Treasury 54 31
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.
3
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (UNAUDITED)
MONEY MARKET MATURITY SCHEDULES (AS OF JULY 31, 2009)
- --------------------------------------------------------------------
AS A PERCENTAGE OF VALUE OF INVESTMENTS
INSTITUTIONAL
PRIME INSTITUTIONAL GOVERNMENT U.S. TREASURY
MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET
- ----------------- ------ ------------- ------------- -------------
Fewer than 8 Days 50.8% 51.5% 48.6% 45.4%
- ----------------- ------ ------------- ------------- -------------
8 to 14 Days 5.6% 4.6% 2.6% 2.9%
- ----------------- ------ ------------- ------------- -------------
15 to 30 Days 5.8% 4.4% 11.1% 5.8%
- ----------------- ------ ------------- ------------- -------------
31 to 180 Days 30.7% 29.5% 30.8% 40.9%
- ----------------- ------ ------------- ------------- -------------
181 to 365 Days 7.1% 10.0% 6.9% 5.0%
- ----------------- ------ ------------- ------------- -------------
366 to 397 Days 0.0% 0.0% 0.0% 0.0%
- ----------------- ------ ------------- ------------- -------------
4
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
CORPORATE BONDS (8.2%)
COSMETICS & TOILETRIES (1.6%)
Procter & Gamble Co. (The), 0.66%,
9/9/09 (a) $ 5,000,000 $ 5,000,000
Procter & Gamble Co. (The), 0.81%,
9/9/09 (a) (d) 11,500,000 11,524,978
Procter & Gamble International
Funding SCA, 1.00%,
8/7/09 (a) (d) 3,500,000 3,500,000
-----------
20,024,978
-----------
DIVERSIFIED BANKS (2.4%)
BNP Paribas, 1.15%, 8/13/09 (a) 15,000,000 15,000,000
JPMorgan Chase & Co., 1.01%,
10/22/09 (a) (d) 15,520,000 15,470,632
-----------
30,470,632
-----------
DIVERSIFIED FINANCIAL SERVICES (1.5%)
General Electric Capital Corp.,
0.53%, 10/26/09 (a) 10,000,000 9,926,637
General Electric Capital Corp.,
5.25%, 10/27/09 4,545,000 4,575,886
General Electric Capital Corp.,
Series A, 3.75%, 12/15/09 3,500,000 3,520,444
-----------
18,022,967
-----------
INTEGRATED OIL & GAS (1.3%)
BP Capital Markets PLC, 0.77%,
9/11/09 (a) (d) 15,000,000 15,000,000
BP Capital Markets PLC, 4.88%,
3/15/10 2,000,000 2,042,718
-----------
17,042,718
-----------
RETAIL-DISCOUNT (1.4%)
Wal-Mart Stores, Inc., 6.88%,
8/10/09 17,650,000 17,666,439
-----------
TOTAL CORPORATE BONDS 103,227,734
-----------
MUNICIPAL BONDS (0.6%)
MICHIGAN (0.6%)
County of Kent, GO, 2.50%, 4/1/10 7,800,000 7,846,056
-----------
TOTAL MUNICIPAL BONDS 7,846,056
-----------
U.S. GOVERNMENT AGENCIES (22.4%)
FANNIE MAE (1.3%)
0.90%, 8/8/09 (a) (d) 10,000,000 10,005,482
4.63%, 12/15/09 6,150,000 6,232,276
-----------
16,237,758
-----------
FEDERAL FARM CREDIT BANK (1.1%)
0.32%, 9/21/09 (a) (d) 4,000,000 3,991,704
0.36%, 9/21/09 (a) (d) 10,000,000 9,962,335
-----------
13,954,039
-----------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK (12.4%)
0.21%, 8/6/09 (a) $ 17,000,000 $16,999,776
0.22%, 10/16/09 (a) (d) 10,000,000 10,001,704
0.33%, 11/24/09 ** 6,000,000 5,993,675
0.38%, 10/16/09 (a) 10,000,000 10,000,000
0.54%, 10/5/09 (a) 10,000,000 10,000,562
0.58%, 10/2/09 (a) 15,000,000 15,005,823
0.65%, 5/11/10 10,000,000 10,011,844
0.70%, 6/25/10 5,000,000 5,000,000
0.79%, 8/19/09 (a) (d) 10,000,000 10,007,570
0.83%, 11/18/09 ** 10,000,000 9,974,870
0.87%, 1/26/10 10,000,000 9,993,660
1.05%, 2/23/10 5,800,000 5,799,606
2.72%, 9/18/09 10,000,000 9,994,852
3.00%, 6/11/10 4,200,000 4,284,226
3.88%, 1/15/10 3,500,000 3,547,111
4.88%, 3/12/10 4,600,000 4,715,219
5.00%, 12/11/09 15,000,000 15,223,016
-----------
156,553,514
-----------
FREDDIE MAC (7.6%)
0.27%, 8/19/09 (a) (d) 5,000,000 4,999,569
0.33%, 10/10/09 (a) (d) 14,500,000 14,500,000
0.88%, 8/4/09 (a) (d) 15,000,000 15,000,000
1.25%, 3/18/10 10,000,000 10,009,623
3.13%, 2/4/10 5,000,000 5,051,671
4.13%, 9/1/09 6,644,000 6,659,937
4.13%, 11/30/09 5,000,000 5,055,591
4.13%, 7/12/10 10,960,000 11,327,827
4.88%, 2/9/10 8,833,000 9,020,178
6.63%, 9/15/09 15,000,000 15,081,531
-----------
96,705,927
-----------
TOTAL U.S. GOVERNMENT AGENCIES 283,451,238
-----------
COMMERCIAL PAPER (21.4%)
ASSET BACKED COMMERCIAL PAPER (1.0%)
Old Line Funding LLC, 0.28%,
8/11/09 ** (b) 12,907,000 12,905,996
-----------
BEVERAGES-NON ALCOHOLIC (2.2%)
Coca-Cola Co. (The), 0.25%,
11/4/09 ** 5,919,000 5,915,095
Coca-Cola Co. (The), 0.38%,
12/9/09 ** 10,000,000 9,986,278
Coca-Cola Co. (The), 0.40%,
8/17/09 ** 7,500,000 7,498,667
Coca-Cola Co. (The), 0.75%,
6/2/10 ** 5,000,000 4,968,229
-----------
28,368,269
-----------
COMMERCIAL BANKS NON-U.S. (3.2%)
Bank of Nova Scotia, 0.39%,
8/7/09 ** 15,000,000 14,999,025
Societe Generale North America,
0.20%, 8/4/09 ** 15,000,000 14,999,750
Societe Generale North America,
0.23%, 8/18/09 ** 10,000,000 9,998,914
-----------
39,997,689
-----------
Continued
5
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
COMMERCIAL PAPER, CONTINUED
COMMERCIAL BANKS-CENTRAL U.S. (1.2%)
Bank of Montreal, 0.35%, 9/14/09 $15,000,000 $15,000,000
-----------
COSMETICS & TOILETRIES (2.1%)
Procter & Gamble International
Funding SCA, 0.24%, 10/22/09 ** 13,000,000 12,992,893
Procter & Gamble International
Funding SCA, 0.60%,
9/4/09 ** (b) 14,254,000 14,245,923
-----------
27,238,816
-----------
DIVERSIFIED FINANCIAL SERVICES (2.1%)
Rabobank USA Financial Co., 0.30%,
9/3/09 ** 10,000,000 9,997,250
Rabobank USA Financial Co., 0.33%,
9/1/09 ** 16,500,000 16,495,311
-----------
26,492,561
-----------
DIVERSIFIED MANUFACTURING OPERATIONS (1.2%)
General Electric Co., 0.30%,
9/21/09 ** 15,000,000 14,993,625
-----------
FINANCE-INVESTMENT BANKER/BROKER (3.0%)
BNP Paribas Finance, Inc., 0.19%,
8/3/09 ** 15,000,000 14,999,842
BNP Paribas Finance, Inc., 0.29%,
8/10/09 ** 12,450,000 12,449,097
BNP Paribas Finance, Inc., 0.35%,
10/5/09 ** 10,000,000 9,993,681
-----------
37,442,620
-----------
FOOD-MISC/DIVERSIFIED (1.6%)
Nestle Capital Corp., 0.45%,
1/25/10 ** 10,000,000 9,977,875
Nestle Capital Corp., 0.70%,
2/16/10 ** 10,000,000 9,961,305
-----------
19,939,180
-----------
MEDICAL-HOSPITALS (0.4%)
Essentia Health, 0.90%, 8/28/09 ** 5,000,000 4,996,625
-----------
MUNICIPAL (0.7%)
Burlington Kansas Pollution
Control, 0.40%, 8/14/09 2,400,000 2,400,000
Burlington Kansas Pollution
Control, 0.50%, 8/14/09 7,000,000 7,000,000
-----------
9,400,000
-----------
OIL COMPANY-INTEGRATED (1.2%)
BP Capital Markets PLC, 0.90%,
11/9/09 ** (b) 5,000,000 4,987,500
Total Capital SA, 0.24%, 9/9/09 ** 10,000,000 9,997,400
-----------
14,984,900
-----------
U.S. MUNICIPALS (1.5%)
Walnut Energy Center Authority,
0.35%, 8/13/09 ** 18,960,000 18,957,788
-----------
TOTAL COMMERCIAL PAPER 270,718,069
-----------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
DEMAND NOTES (7.0%)
COMMERCIAL SERVICES (0.8%)
World Wildlife Fund, 0.39%, 8/6/09,
(LOC: JP Morgan, Inc.) (a) (d) $ 9,780,000 $ 9,780,000
-----------
DIVERSIFIED FINANCIAL SERVICES (0.4%)
Harry W. Albright Jr., Series 1996,
1.20%, 8/6/09, (LOC: Bank of
America) (a) (d) 4,700,000 4,700,000
-----------
FINANCE-OTHER SERVICES (0.6%)
Mortgage Bankers Association of
America, 0.63%, 8/7/09, (LOC: PNC
Bank NA) (a) (d) 8,000,000 8,000,000
-----------
REVENUE BONDS (0.6%)
Metrodev Newark LLC, 0.95%, 8/6/09,
(LOC: PNC Bank NA) (a) (d) 7,900,000 7,900,000
-----------
SPECIAL PURPOSE ENTITY (4.6%)
Capital One Funding Corp., Series
1996-H, 1.02%, 8/6/09, (LOC: JP
Morgan, Inc.) (a) (b) (d) 296,000 296,000
Capital One Funding Corp., Series
1997-D, 0.67%, 8/6/09, (LOC: JP
Morgan, Inc.) (a) (b) (d) 404,000 404,000
Capital One Funding Corp., Series
1999-D, 4.00%, 8/6/09, (LOC: JP
Morgan, Inc.) (a) (d) 100,000 100,000
Capital One Funding Corp., Series
2001-C, 0.67%, 8/6/09, (LOC: JP
Morgan, Inc.) (a) (d) 2,067,000 2,067,000
Clare at Water Tower (The), Series
2005, 0.50%, 8/6/09, (LOC: Bank of
America) (a) (d) 12,500,000 12,500,000
Doctors Park LLP, 0.60%, 8/6/09,
(LOC: US Bancorp) (a) (d) 9,130,000 9,130,000
Erickson Foundation, Inc. (The),
0.52%, 8/6/09, (LOC:
FHLB) (a) (d) 15,000,000 15,000,000
Landmark Medical LLC, Series 2000,
1.25%, 8/6/09, (LOC: JP Morgan,
Inc.) (a) (d) 5,880,000 5,880,000
New Belgium Brewing Co., Inc.,
Series 2000, 0.65%, 8/6/09,
(LOC: Wells Fargo & Co.) (a) (d) 1,570,000 1,570,000
Saddleback Valley Community Church,
0.45%, 8/6/09, (LOC: FHLB)
(a) (d) 9,880,000 9,880,000
SGS Tool Co., Series 1999, 1.20%,
8/6/09, (LOC: JP Morgan, Inc.)
(a) (d) 1,300,000 1,300,000
-----------
58,127,000
-----------
TOTAL DEMAND NOTES 88,507,000
-----------
MUNICIPAL DEMAND NOTES (21.4%)
ALASKA (1.2%)
Borough of North Slope, BP
Exploration Alaska Project, AMT,
0.37%, 8/3/09, (LOC: BP
Amoco) (a) (d) 15,000,000 15,000,000
-----------
Continued
6
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
CALIFORNIA (3.7%)
Abag Finance Authority for Nonprofit
Corp., YMCA of San Francisco, Series
A, 0.50%, 8/6/09, (LOC: Wells Fargo &
Co.) (a) (d) $ 8,585,000 $ 8,585,000
County of Riverside, CP, 0.45%,
8/5/09, (LOC: State Street Corp.)
(a) (d) 6,200,000 6,200,000
County of Sacramento, Pensions,
Series C, 0.80%, 8/5/09, (LOC:
Bayerische Landesbank) (a) (d) 32,430,000 32,430,000
-----------
47,215,000
-----------
COLORADO (0.1%)
Pueblo Housing Authority, 0.65%,
8/6/09, (LOC: Wells Fargo
& Co.) (a) (b) (d) 1,500,000 1,500,000
-----------
FLORIDA (0.8%)
Municipal Power Agency, All Required
Project, Series D, 0.40%, 8/6/09,
(LOC: Bank of America) (a) (d) 10,000,000 10,000,000
-----------
GEORGIA (0.8%)
Savannah College of Art & Design,
Inc., Series 2004 BD, 0.60%, 8/6/09,
(LOC: Bank of America) (a) (d) 10,638,000 10,638,000
-----------
ILLINOIS (1.6%)
County of Will, Exxon Mobil Project,
AMT, 0.26%, 8/3/09, (LOC: Exxon
Mobil Corp.) (a) (d) 6,815,000 6,815,000
Finance Authority, Art Institute of
Chicago, Series B-2, 0.38%, 8/5/09,
(LOC: Northern Trust Corp.)
(a) (d) 3,300,000 3,300,000
Finance Authority, Fairview
Ministries, Inc., Series D, 0.50%,
8/6/09, (LOC: Bank of America)
(a) (d) 4,455,000 4,455,000
Finance Authority, Franciscan
Communities, Series B, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 5,870,000 5,870,000
-----------
20,440,000
-----------
INDIANA (0.2%)
Finance Authority, Haven Hubbard
Homes, Inc., Series B, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 2,100,000 2,100,000
-----------
IOWA (0.5%)
Dallas County Industrial Development,
Sioux City Brick and Tile, Series B,
0.50%, 8/6/09, (LOC: U.S.
Bancorp) (a) (d) 5,595,000 5,595,000
-----------
MARYLAND (0.9%)
Health & Higher Educational
Facilities Authority, Adventist
Healthcare, Series B, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 10,930,000 10,930,000
-----------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
NEW YORK (3.2%)
New York City Housing Development
Corp., Multi-Family Housing, Chelsea
Centro, Series A, 0.47%, 8/5/09,
(LOC: Bayerische Landesbank)
(a) (d) $40,985,000 $40,985,000
-----------
OHIO (2.0%)
American Municipal Power-Ohio, Inc.,
Series A, 2.90%, 8/6/09, (LOC: KeyBank
NA) (a) (d) 9,770,000 9,770,000
Cleveland-Cuyahoga County Port
Authority, Science Park LLC, Series
B, 2.90%, 8/6/09, (LOC: KeyBank
NA) (a) (d) 12,515,000 12,515,000
State Higher Educational Facility
Commission, Kenyon College Project,
0.33%, 8/3/09, (LOC: Northern Trust
Corp.) (a) (d) 3,000,000 3,000,000
-----------
25,285,000
-----------
OKLAHOMA (0.3%)
Tulsa Airports Improvement Trust,
Series B, 0.50%, 8/6/09, (LOC: JP
Morgan, Inc.) (a) (d) 4,050,000 4,050,000
-----------
PENNSYLVANIA (0.4%)
Blair County Industrial Development
Authority, AMT, 0.63%, 8/6/09,
(LOC: PNC Bank NA) (a) (d) 5,000,000 5,000,000
-----------
TEXAS (2.5%)
Gulf Coast Waste Disposal Authority,
Exxon Mobil Project, AMT, 0.26%,
8/3/09, (LOC: Exxon Mobil
Corp.) (a) (d) 6,200,000 6,200,000
Gulf Coast Waste Disposal Authority,
Exxon Mobil Project, Series B, AMT,
0.26%, 8/3/09, (LOC: Exxon Mobil
Corp.) (a) (d) 5,550,000 5,550,000
Lower Neches Valley Authority
Industrial Development Corp.,
ExxonMobil Project, Series B, AMT,
0.26%, 8/3/09, (LOC: Exxon Mobil
Corp.) (a) (d) 20,000,000 20,000,000
-----------
31,750,000
-----------
UTAH (2.0%)
Telecommunication Open Infrastructure
Agency, 2.90%, 8/6/09, (LOC:
KeyBank NA) (a) (d) 25,000,000 25,000,000
-----------
WASHINGTON (1.2%)
State Housing Finance Commission,
Multi-Family, Monticello Park
Project, Series B, 0.67%, 8/6/09,
(LOC: FNMA) (a) (d) 3,525,000 3,525,000
Continued
7
PRIME MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
WASHINGTON, CONTINUED
State Housing Finance Commission,
Skyline At First, Series D, 0.50%,
8/6/09, (LOC: Bank of
America) (a) (d) $11,100,000 $11,100,000
-----------
14,625,000
-----------
TOTAL MUNICIPAL DEMAND NOTES 270,113,000
-----------
SHARES
----------
MONEY MARKETS (7.7%)
AIM STIT Liquid Assets
Portfolio (c) 54,058,783 54,058,783
Goldman Sachs Financial Square Funds
- Prime Obligations Fund (c) 43,166,812 43,166,812
-----------
TOTAL MONEY MARKETS 97,225,595
-----------
PRINCIPAL
AMOUNT
----------
REPURCHASE AGREEMENTS (12.1%)
Barclays PLC, 0.20%, dated 7/31/09, due
8/3/09, (Proceeds at maturity,
$45,000,750, Collateralized by U.S.
Treasury Security, 2.38%, 4/15/11,
value $45,900,060) $45,000,000 45,000,000
Deutsche Bank, 0.19%, dated 7/31/09,
due 8/3/09, (Proceeds at maturity,
$100,001,583, Collateralized by
various U.S. Government Agency
Securities, 0.00%-3.15%, 8/31/09-
1/15/14, value $102,000,125) 100,000,000 100,000,000
UBS Investment Bank, 0.17%, dated
7/31/09, due 8/3/09, (Proceeds at
maturity, $7,696,109, Collateralized
by Freddie Mac Discount Notes,
0.00%, 1/5/10-2/11/10,
value $7,854,209) 7,696,000 7,696,000
---------------
TOTAL REPURCHASE AGREEMENTS 152,696,000
---------------
TOTAL INVESTMENTS (COST $1,273,784,692)(+) - 100.8% 1,273,784,692
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8)% (9,751,070)
---------------
NET ASSETS - 100.0% $ 1,264,033,622
===============
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, 2009.
(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
CP - Certificates of Participation
FHLB - Federal Home Loan Bank
FNMA - Federal National Mortgage Association
GO - General Obligation
LOC - Letter of Credit
At July 31, 2009, Prime Money Market's investments were in the following
countries:
COUNTRY
- --------------------------------------------
Canada 2.4%
France 1.2%
Great Britain 1.7%
Luxembourg 0.3%
United States 94.4%
----------
TOTAL 100.0%
==========
See notes to schedules of investments
and notes to financial statements.
8
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
CORPORATE BONDS (8.2%)
COSMETICS & TOILETRIES (2.2%)
Procter & Gamble Co. (The), 0.66%,
9/9/09 (a) $15,000,000 $15,000,000
Procter & Gamble Co. (The), 0.81%,
9/9/09 (a) (d) 25,000,000 25,054,300
Procter & Gamble International
Funding SCA, 1.00%, 8/7/09 (a) (d) 15,000,000 15,012,682
Procter & Gamble International
Funding SCA, 1.05%, 8/19/09 (a) 11,300,000 11,303,528
------------
66,370,510
------------
DIVERSIFIED BANKS (2.1%)
BNP Paribas, 1.15%, 8/13/09 (a) 25,000,000 25,000,000
JPMorgan Chase & Co., 0.79%,
10/2/09 (a) 6,200,000 6,199,054
JPMorgan Chase & Co., 1.01%,
10/22/09 (a) (d) 35,000,000 34,887,238
------------
66,086,292
------------
DIVERSIFIED FINANCIAL SERVICES (1.2%)
General Electric Capital Corp.,
0.53%, 10/26/09 (a) 15,000,000 14,889,955
General Electric Capital Corp.,
0.77%, 8/31/09 (a) 5,000,000 5,000,000
General Electric Capital Corp.,
5.25%, 10/27/09 10,000,000 10,067,956
General Electric Capital Corp.,
Series A, 3.75%, 12/15/09 6,500,000 6,537,969
------------
36,495,880
------------
FIDUCIARY BANKS (0.1%)
Bank of New York Mellon Corp. (The),
1.42%, 8/5/09 (a) (d) 3,900,000 3,886,888
------------
INTEGRATED OIL & GAS (1.2%)
BP Capital Markets PLC, 0.77%,
9/11/09 (a) (d) 35,000,000 35,000,000
BP Capital Markets PLC, 4.88%, 3/15/10 3,000,000 3,064,077
------------
38,064,077
------------
RETAIL-DISCOUNT (1.0%)
Wal-Mart Stores, Inc., 6.88%, 8/10/09 31,825,000 31,866,764
------------
SUPER-REGIONAL BANKS-U.S. (0.4%)
Wells Fargo & Co., 0.73%, 9/15/09 (a) 7,385,000 7,369,060
Wells Fargo & Co., 4.20%, 1/15/10 5,000,000 5,040,615
------------
12,409,675
------------
TOTAL CORPORATE BONDS 255,180,086
------------
MORTGAGE-BACKED SECURITIES (0.3%)
CMBS OTHER (0.3%)
Freddie Mac, 1.61%, 8/6/09 (a)(d) 7,455,777 7,455,777
------------
TOTAL MORTGAGE-BACKED SECURITIES 7,455,777
------------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL BONDS (0.5%)
MICHIGAN (0.5%)
County of Kent, GO, 2.50%, 4/1/10 $16,500,000 $16,597,426
------------
TOTAL MUNICIPAL BONDS 16,597,426
------------
U.S. GOVERNMENT AGENCIES (22.6%)
FANNIE MAE (1.9%)
0.90%, 8/8/09 (a) (d) 15,000,000 15,008,223
4.63%, 12/15/09 18,801,000 19,038,425
6.63%, 9/15/09 25,935,000 26,060,499
------------
60,107,147
------------
FEDERAL FARM CREDIT BANK (0.7%)
0.32%, 9/21/09 (a) (d) 8,000,000 7,983,408
0.36%, 9/21/09 (a) (d) 15,000,000 14,943,501
------------
22,926,909
------------
FEDERAL HOME LOAN BANK (12.1%)
0.22%, 10/16/09 (a) (d) 25,000,000 25,004,260
0.33%, 11/24/09 ** 14,000,000 13,985,242
0.38%, 10/16/09 (a) 25,000,000 25,000,000
0.54%, 10/5/09 (a) 15,000,000 15,000,843
0.58%, 10/2/09 (a) 25,000,000 25,009,705
0.65%, 5/11/10 25,000,000 25,029,611
0.70%, 6/25/10 15,000,000 15,000,000
0.79%, 8/19/09 (a) (d) 20,000,000 20,015,139
0.83%, 11/18/09 ** 15,000,000 14,962,304
0.87%, 1/26/10 15,000,000 14,990,491
1.05%, 2/23/10 10,000,000 9,999,321
2.01%, 9/23/09 25,000,000 25,061,106
2.38%, 4/30/10 4,950,000 5,003,697
3.00%, 6/11/10 10,000,000 10,200,538
3.50%, 1/6/10 10,000,000 10,109,992
3.88%, 1/15/10 7,180,000 7,276,644
4.25%, 6/11/10 22,600,000 23,316,149
4.50%, 10/9/09 12,705,000 12,781,253
4.88%, 5/14/10 10,000,000 10,344,314
5.00%, 9/18/09 13,550,000 13,589,972
5.00%, 3/12/10 23,270,000 23,886,328
5.25%, 8/5/09 18,500,000 18,506,942
5.25%, 6/11/10 6,200,000 6,449,622
6.50%, 11/13/09 5,000,000 5,084,398
------------
375,607,871
------------
FREDDIE MAC (7.9%)
0.27%, 8/19/09 (a) (d) 12,000,000 11,998,964
0.31%, 1/19/10 ** 25,000,000 24,963,188
0.33%, 10/10/09 (a) (d) 35,000,000 35,000,000
0.88%, 8/4/09 (a) (d) 25,000,000 25,000,000
1.25%, 3/18/10 20,000,000 20,019,247
1.50%, 11/13/09 ** 13,500,000 13,441,500
3.13%, 2/4/10 10,000,000 10,103,342
3.13%, 2/12/10 10,000,000 10,139,983
Continued
9
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC, CONTINUED
4.13%, 9/1/09 $11,000,000 $11,025,735
4.13%, 11/30/09 10,000,000 10,111,182
4.13%, 7/12/10 30,000,000 31,000,730
4.88%, 2/9/10 40,000,000 40,881,699
------------
243,685,570
------------
TOTAL U.S. GOVERNMENT AGENCIES 702,327,497
------------
COMMERCIAL PAPER (23.5%)
ASSET BACKED COMMERCIAL PAPER (2.0%)
Old Line Funding LLC, 0.25%,
8/4/09 ** (b) 40,000,000 39,999,167
Old Line Funding LLC, 0.28%,
8/11/09 ** (b) 22,000,000 21,998,289
------------
61,997,456
------------
BEVERAGES-NON ALCOHOLIC (2.0%)
Coca-Cola Co. (The), 0.25%,
11/4/09 ** 15,000,000 14,990,104
Coca-Cola Co. (The), 0.38%,
12/9/09 ** 20,000,000 19,972,556
Coca-Cola Co. (The), 0.40%,
8/17/09 ** 17,000,000 16,996,978
Coca-Cola Co. (The), 0.75%,
6/2/10 ** 10,000,000 9,936,458
------------
61,896,096
------------
COMMERCIAL BANKS-CENTRAL U.S. (0.8%)
Bank of Montreal, 0.35%, 9/14/09 25,000,000 25,000,000
------------
COMMERCIAL BANKS-EASTERN U.S. (0.5%)
Toronto Dominion Holding, 1.96%,
10/6/09 15,000,000 15,001,875
------------
COMMERCIAL BANKS NON-U.S. (1.8%)
Bank of Nova Scotia, 0.39%,
8/7/09 ** 25,000,000 24,998,375
Societe Generale North America,
0.23%, 8/18/09 ** 30,000,000 29,996,742
------------
54,995,117
------------
COSMETICS & TOILETRIES (0.9%)
Procter & Gamble International
Funding SCA, 0.25%, 10/5/09 ** (b) 30,000,000 29,986,458
------------
DIVERSIFIED FINANCIAL SERVICES (2.2%)
Rabobank Nederland NV, 0.35%,
8/14/09 25,000,000 25,000,270
Rabobank USA Financial Co., 0.30%,
9/3/09 ** 25,000,000 24,993,125
Rabobank USA Financial Co., 0.33%,
9/1/09 ** 20,000,000 19,994,317
------------
69,987,712
------------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
COMMERCIAL PAPER, CONTINUED
DIVERSIFIED MANUFACTURING OPERATIONS (1.6%)
General Electric Co., 0.30%,
9/21/09 ** $50,000,000 $49,978,750
------------
FIDUCIARY BANKS (1.1%)
State Street Corp., 0.25%, 8/3/09 ** 35,000,000 34,999,514
------------
FINANCE-INVESTMENT BANKER/BROKER (2.9%)
BNP Paribas Finance, Inc., 0.19%,
8/3/09 ** 35,000,000 34,999,631
BNP Paribas Finance, Inc., 0.29%,
8/10/09 ** 30,000,000 29,997,825
BNP Paribas Finance, Inc., 0.35%,
10/5/09 ** 25,000,000 24,984,201
------------
89,981,657
------------
FOOD-MISC/DIVERSIFIED (1.3%)
Nestle Capital Corp., 0.45%,
1/25/10 ** 20,000,000 19,955,750
Nestle Capital Corp., 0.70%,
2/16/10 ** 20,000,000 19,922,611
------------
39,878,361
------------
MEDICAL-HOSPITALS (0.5%)
Essentia Health, 0.90%, 8/28/09 ** 14,800,000 14,790,010
------------
OIL COMPANY-INTEGRATED (3.5%)
BP Capital Markets PLC, 0.67%,
8/19/09 ** (b) 25,000,000 24,991,625
BP Capital Markets PLC, 0.90%,
11/9/09 ** (b) 15,000,000 14,962,500
Chevron Corp., 0.22%, 8/21/09 ** 35,000,000 34,995,722
Mississippi Business Finance Corp.,
0.55%, 10/19/09,
(LOC: British Petroleum) 8,100,000 8,100,000
Total Capital SA, 0.24%, 9/9/09 ** 25,000,000 24,993,500
------------
108,043,347
------------
SCHOOLS (0.5%)
University of Michigan, 0.35%,
9/3/09 6,435,000 6,435,000
University of Michigan, 0.35%,
10/21/09 7,770,000 7,770,000
------------
14,205,000
------------
U.S. MUNICIPALS (1.9%)
Massachusetts State Water Resource,
0.42%, 9/8/09 25,000,000 25,000,000
Walnut Energy Center Authority,
0.35%, 8/13/09 ** 35,000,000 34,995,917
------------
59,995,917
------------
TOTAL COMMERCIAL PAPER 730,737,270
------------
DEMAND NOTES (4.5%)
BUILDING PRODUCTION-CEMENT/AGGREGATE (0.8%)
Sioux City Brick & Tile Co., 0.39%,
8/6/09, (LOC: U.S. Bancorp) (a) (b) (d) 24,175,000 24,175,000
------------
Continued
10
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
DEMAND NOTES, CONTINUED
FINANCE-OTHER SERVICES (1.5%)
Lexington Financial Services LLC,
0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) $29,955,000 $29,955,000
Mortgage Bankers Association of
America, 0.63%, 8/7/09,
(LOC: PNC Bank NA) (a) (d) 17,000,000 17,000,000
------------
46,955,000
------------
FINANCIAL (0.1%)
Cornerstone Funding Corp., Series
2003-H, 1.65%, 1/1/34,
(LOC: US Bancorp) 4,015,000 4,015,000
------------
SPECIAL PURPOSE ENTITY (2.1%)
Capital One Funding Corp.,
Series 2001-A, 2.37%, 8/6/09,
(LOC: JP Morgan, Inc.) (a) (d) 1,485,000 1,485,000
Corporate Finance Managers, Inc.,
0.40%, 8/6/09,
(LOC: Wells Fargo & Co.) (a) (d) 12,445,000 12,445,000
Erickson Foundation, Inc. (The),
0.52%, 8/6/09, (LOC: FHLB) (a) (d) 25,000,000 25,000,000
Gulf Gate Apartments, Series 2003,
0.40%, 8/6/09,
(LOC: Wells Fargo & Co.) (a) (b) (d) 7,295,000 7,295,000
Park Street Properties I LLC,
Series 2004, 0.60%, 8/6/09,
(LOC: US Bancorp) (a) (d) 10,935,000 10,935,000
Pershing Drive Associates L.P.,
0.90%, 8/6/09,
(LOC: Royal Bank of Canada) (a) (d) 8,660,000 8,660,000
------------
65,820,000
------------
TOTAL DEMAND NOTES 140,965,000
------------
MUNICIPAL DEMAND NOTES (18.3%)
ALASKA (1.3%)
Borough of North Slope, BP
Exploration Alaska Project, AMT,
0.40%, 8/3/09, (LOC: BP Amoco) (a) (d) 40,000,000 40,000,000
------------
ARIZONA (0.3%)
Glendale Industrial Development
Authority, Thunderbird, Garvin
School, Series B, 0.50%, 8/6/09,
(LOC: Bank of New York
Co., Inc.) (a) (d) 9,465,000 9,465,000
------------
CALIFORNIA (2.6%)
County of Sacramento, Pensions,
Series B, 0.80%, 8/5/09,
(LOC: Bayerische Landesbank) (a) (d) 51,300,000 51,300,000
County of Sacramento, Pensions,
Series C, 0.80%, 8/5/09,
(LOC: Bayerische Landesbank) (a) (d) 21,010,000 21,010,000
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
CALIFORNIA, CONTINUED
Kern Water Bank Authority,
Series B, 0.40%, 8/6/09,
(LOC: Wells Fargo & Co.) (a) (d) $ 3,931,000 $ 3,931,000
Sacramento County Housing Authority,
Multi-Family, Natomas Park
Apartments, Series B, 0.67%, 8/6/09,
(LOC: FNMA) (a) (d) 1,450,000 1,450,000
Statewide Communities Development
Authority, Multi-Family Housing,
Series X-T, 0.70%, 8/6/09,
(LOC: FNMA) (a) (d) 600,000 600,000
Statewide Communities Development
Authority, Multi-Family, Valley Palms
Apartments, Series C-T, 0.65%,
8/6/09, (LOC: FNMA) (a) (d) 1,945,000 1,945,000
------------
80,236,000
------------
FLORIDA (1.3%)
Municipal Power Agency, All Required
Project, Series D, 0.40%, 8/6/09,
(LOC: Bank of America) (a) (d) 32,305,000 32,305,000
University South Florida Research
Foundation, Inc., Series C, 0.65%,
8/5/09, (LOC: Bank of America) (a) (d) 8,630,000 8,630,000
------------
40,935,000
------------
GEORGIA (0.0%)
Augusta Housing Authority, Westbury
Creek Apartments, Series B, 2.00%,
8/5/09, (LOC: FNMA) (a) (d) 500,000 500,000
------------
ILLINOIS (1.7%)
County of Will, Exxon Mobil Project,
AMT, 0.26%, 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) 20,000,000 20,000,000
Finance Authority, Art Institute of
Chicago, Series B-1, 0.38%, 8/5/09,
(LOC: JP Morgan, Inc.) (a) (d) 6,000,000 6,000,000
Finance Authority, Commonwealth
Edison Co., Series F, 0.33%, 8/5/09,
(LOC: JP Morgan, Inc.) (a) (d) 10,100,000 10,100,000
Finance Authority, Fairview Village,
Series E, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 6,250,000 6,250,000
Finance Authority, Franciscan
Communities, Series B, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 11,830,000 11,830,000
------------
54,180,000
------------
INDIANA (1.1%)
City of Indianapolis Development,
Multi-Family Housing, Pedcor
Investments, Series B, 1.05%, 8/6/09,
(LOC: FHLB) (a) (d) 961,000 961,000
Health Facility Financing Authority,
Clark Memorial Hospital,
Series B, 2.37%, 8/6/09,
(LOC: JP Morgan, Inc.) (a) (d) 2,770,000 2,770,000
Continued
11
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
INDIANA, CONTINUED
Health Facility Financing Authority,
Community Foundation of Northwest
Indiana, Series B, 0.50%, 8/6/09,
(LOC: Bank of Montreal) (a) (d) $21,515,000 $21,515,000
Terre Haute, Westminister Village,
Series B, 0.50%, 8/6/09,
(LOC: Sovereign Bank FSB) (a) (d) 9,300,000 9,300,000
------------
34,546,000
------------
KENTUCKY (0.1%)
County of Boone, Northern Kentucky
University Metropolitan Education and
Training Services Center Project,
0.80%, 8/6/09,
(LOC: U.S. Bancorp) (a) (d) 4,660,000 4,660,000
------------
MARYLAND (1.1%)
Health & Higher Educational
Facilities Authority, Adventist
Healthcare, Series B, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 19,060,000 19,060,000
Health & Higher Educational
Facilities Authority, Charlestown
Community, Series B, 0.50%, 8/5/09,
(LOC: Bank of America) (a) (d) 16,000,000 16,000,000
------------
35,060,000
------------
MASSACHUSETTS (0.9%)
Development Finance Agency,
Briarwood, Series B, 1.00%, 8/6/09,
(LOC: Sovereign Bank FSB) (a) (d) 8,940,000 8,940,000
Simmons College, 0.50%, 8/6/09,
(LOC: JP Morgan, Inc.) (a) (d) 17,890,000 17,890,000
------------
26,830,000
------------
MICHIGAN (0.1%)
Charter Township of Canton, GO, 2.75%,
8/5/09, (LOC: Comerica Bank) (a) (d) 1,000,000 1,000,000
Charter Township of Ypsilanti,
Capital Improvements, Series B, GO,
2.75%, 8/5/09,
(LOC: Comerica Bank) (a) (d) 2,280,000 2,280,000
------------
3,280,000
------------
MINNESOTA (0.7%)
City of Plymouth, Carlson Center
Project, 0.70%, 8/6/09,
(LOC: U.S. Bancorp) (a) (d) 600,000 600,000
City of St Paul, 0.40%, 8/6/09,
(LOC: U.S. Bancorp) (a) (d) 12,500,000 12,500,000
State of Minnesota, Supplemental
Student Loan, Series A, 0.65%,
8/6/09, (LOC: U.S. Bancorp) (a) (d) 10,000,000 10,000,000
------------
23,100,000
------------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
NEW MEXICO (0.2%)
City of Albuquerque Industrial, KTECH
Corp. Project, 0.55%, 8/6/09,
(LOC: Wells Fargo & Co.) (a) (d) $ 4,145,000 $ 4,145,000
City of Albuquerque Industrial, KTECH
Corp. Project, 0.55%, 8/6/09,
(LOC: Wells Fargo & Co.) (a) (d) 1,440,000 1,440,000
------------
5,585,000
------------
NEW YORK (0.3%)
New York City Housing Development
Corp., Multi-Family Housing, Chelsea
Centro, Series A, 0.47%, 8/5/09,
(LOC: Bayerische Landesbank) (a) (d) 8,405,000 8,405,000
------------
OHIO (1.6%)
Air Quality Development Authority, AK
Steel Corp., Series B, 0.30%, 8/5/09,
(LOC: Royal Bank of Scotland) (a) (d) 26,000,000 26,000,000
City of Cleveland, Airport System,
Series B, 0.37%, 8/6/09,
(LOC: U.S. Bancorp) (a) (d) 5,000,000 5,000,000
County of Cuyahoga Health Care
Facilities, Franciscan Communities,
Series F, 0.50%, 8/6/09,
(LOC: Bank of America) (a) (d) 1,250,000 1,250,000
Kent State University Revenues,
0.30%, 8/3/09,
(LOC: JP Morgan, Inc.) (a) (d) 18,105,000 18,105,000
------------
50,355,000
------------
PENNSYLVANIA (0.4%)
Berks County Municipal Authority,
Phoebe-Devitt Homes,
Series C, 0.50%, 8/6/09,
(LOC: Sovereign Bank FSB) (a) (d) 2,710,000 2,710,000
Blair County Industrial Development
Authority, AMT, 0.63%, 8/6/09,
(LOC: PNC Bank NA) (a) (d) 9,000,000 9,000,000
------------
11,710,000
------------
TEXAS (4.0%)
Gulf Coast Waste Disposal Authority,
Exxon Mobil Project,
AMT, 0.17%, 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) 24,500,000 24,500,000
Gulf Coast Waste Disposal Authority,
Exxon Mobil Project,
AMT, 0.26% 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) 15,000,000 15,000,000
Gulf Coast Waste Disposal Authority,
Exxon Mobil Project, Series B,
AMT, 0.26%, 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) 19,400,000 19,400,000
Lower Neches Valley Authority
Industrial Development Corp.,
ExxonMobil Project, Series B,
AMT, 0.26%, 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) 40,455,000 40,455,000
Continued
12
INSTITUTIONAL MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MUNICIPAL DEMAND NOTES, CONTINUED
TEXAS, CONTINUED
Lower Neches Valley Authority
Industrial Development Corp.,
ExxonMobil Project, Series B-4,
AMT, 0.26%, 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) $10,330,000 $10,330,000
Lower Neches Valley Authority
Industrial Development Corp., Mobil
Oil Refining Corp. Project,
AMT, 0.17%, 8/3/09,
(LOC: Exxon Mobil Corp.) (a) (d) 13,300,000 13,300,000
------------
122,985,000
------------
VIRGINIA (0.3%)
Alexandria Industrial Development
Authority, American Academy of
Otolaryngology, Series A, 0.39%,
8/6/09, (LOC: Bank of America) (a) (d) 8,690,000 8,690,000
------------
WASHINGTON (0.1%)
State Housing Finance Commission,
Multi-Family, Granite Falls
Retirement Plaza, Series B, 0.65%,
8/6/09, (LOC: Wells Fargo
& Co.) (a) (d) 940,000 940,000
State Housing Finance Commission,
Multi-Family, Sir Summer Ridge
Associates, Series B, 0.55%, 8/3/09,
(LOC: U.S. Bancorp) (a) (d) 510,000 510,000
State Housing Finance Commission,
Multi-Family, Vintage At Everett,
Series B, 0.67%, 8/6/09,
(LOC: FNMA) (a) (d) 1,490,000 1,490,000
------------
2,940,000
------------
WEST VIRGINIA (0.2%)
Brooke County County Commission,
Bethany College Project, Series B,
0.73%, 8/6/09, (LOC: PNC Bank) (a) (d) 5,000,000 5,000,000
------------
TOTAL MUNICIPAL DEMAND NOTES 568,462,000
------------
SHARES
----------
MONEY MARKETS (7.8%)
AIM STIT Liquid Assets Portfolio (c) 148,094,060 148,094,060
Goldman Sachs Financial Square Funds
- Prime Obligations Fund (c) 94,536,149 94,536,149
------------
TOTAL MONEY MARKETS 242,630,209
------------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
REPURCHASE AGREEMENTS (14.9%)
Barclays PLC, 0.20%, dated 7/31/09,
due 8/3/09, (Proceeds at maturity,
$190,003,167, Collateralized by
U.S. Treasury Security, 2.63%,
7/15/17, value $193,800,056) $190,000,000 $190,000,000
Deutsche Bank, 0.19%, dated 7/31/09,
due 8/3/09, (Proceeds at maturity,
$245,003,879, Collateralized by
various U.S. Government Agency
Securities, 0.00%-4.50%, 8/21/09-
4/28/11, value $249,903,489) 245,000,000 245,000,000
UBS Investment Bank, 0.17%, dated
7/31/09, due 8/3/09, (Proceeds at
maturity, $27,678,392, Collateralized
by Federal Farm Credit Bank, 0.52%,
2/11/10, value $28,235,161) 27,678,000 27,678,000
---------------
TOTAL REPURCHASE AGREEMENTS 462,678,000
---------------
TOTAL INVESTMENTS (COST $3,127,038,265)(+) - 100.6% 3,127,033,265
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.6)% (18,696,665)
---------------
NET ASSETS - 100.0% $ 3,108,336,600
===============
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, 2009.
(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
CMBS - Commercial Mortgage-Backed Security
FHLB - Federal Home Loan Bank
FNMA - Federal National Mortgage Association
GO - General Obligation
LOC - Letter of Credit
At July 31, 2009, Institutional Money Market's investments were in the
following countries:
COUNTRY
- ------------------------------------
Canada 1.6%
France 0.8%
Great Britain 2.5%
Luxembourg 0.8%
United States 94.3%
---------
TOTAL 100.0%
=========
See notes to schedules of investments
and notes to financial statements.
13
INSTITUTIONAL GOVERNMENT MONEY MARKET
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
MORTGAGE-BACKED SECURITIES (2.9%)
CMBS OTHER (2.9%)
Freddie Mac, 1.60%, 8/6/09 (a) (c) $ 7,510,000 $ 7,510,000
Freddie Mac, 1.61%, 8/6/09 (a) (c) 25,728,305 25,728,305
Freddie Mac, 1.61%, 8/6/09 (a) (c) 2,730,000 2,730,000
Freddie Mac, 1.61%, 8/6/09 (a) (c) 41,938,744 41,938,744
------------
77,907,049
------------
TOTAL MORTGAGE-BACKED SECURITIES 77,907,049
------------
U.S. GOVERNMENT AGENCIES (61.7%)
FANNIE MAE (6.8%)
0.20%, 8/20/09 ** 25,000,000 24,997,361
0.29%, 11/2/09 ** 15,000,000 14,988,763
0.30%, 12/1/09 ** 15,000,000 14,984,750
0.33%, 8/3/09 ** 5,000,000 4,999,908
0.34%, 11/16/09 ** 15,000,000 14,984,842
0.34%, 12/23/09 ** 13,666,000 13,647,414
0.35%, 2/1/10 ** 3,370,000 3,363,972
0.45%, 10/21/09 (a) (c) 10,000,000 10,006,758
0.47%, 2/22/10 ** 5,000,000 4,986,618
0.56%, 9/9/09 ** 15,000,000 14,990,900
0.88%, 8/12/09 (a) (c) 11,500,000 11,514,380
0.90%, 8/8/09 (a) (c) 18,000,000 18,009,867
3.25%, 2/10/10 3,344,000 3,390,961
3.88%, 12/10/09 15,050,000 15,239,005
4.63%, 12/15/09 5,000,000 5,065,560
6.63%, 9/15/09 9,710,000 9,756,401
------------
184,927,460
------------
FEDERAL FARM CREDIT BANK (3.4%)
0.21%, 8/22/09 (a) (c) 25,000,000 24,967,796
0.32%, 9/21/09 (a) (c) 8,000,000 7,983,408
0.36%, 9/21/09 (a) (c) 25,000,000 24,906,824
2.70%, 9/23/09 6,000,000 6,017,227
3.05%, 1/21/10 4,000,000 4,048,511
3.88%, 12/17/09 16,600,000 16,778,794
4.75%, 5/7/10 8,845,000 9,126,384
------------
93,828,944
------------
FEDERAL HOME LOAN BANK (25.6%)
0.14%, 8/5/09 ** 25,000,000 24,999,611
0.16%, 8/7/09 ** 35,600,000 35,597,976
0.20%, 8/17/09 ** 8,500,000 8,499,245
0.22%, 8/13/09 (a) 14,000,000 13,999,837
0.22%, 8/21/09 (a) 10,500,000 10,499,566
0.22%, 10/16/09 (a) (c) 15,000,000 15,002,556
0.23%, 8/27/09 (a) 10,000,000 9,999,345
0.24%, 8/13/09 (a) (c) 4,200,000 4,198,928
0.24%, 8/19/09 (a) (c) 25,000,000 24,976,651
0.24%, 9/25/09 ** 20,000,000 19,992,667
0.30%, 8/24/09 ** 12,000,000 11,997,700
0.30%, 11/6/09 ** 20,000,000 19,983,833
0.31%, 1/6/10 ** 8,400,000 8,388,571
0.31%, 1/20/10 ** 10,000,000 9,985,428
0.34%, 1/5/10 ** 20,000,000 19,970,344
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FEDERAL HOME LOAN BANK, CONTINUED
0.38%, 10/16/09 (a) $ 15,000,000 $ 15,000,000
0.44%, 10/13/09 (a) 25,000,000 25,008,272
0.48%, 1/19/10 ** 7,510,000 7,492,877
0.50%, 2/1/10 ** 10,000,000 9,974,444
0.54%, 10/5/09 (a) 25,000,000 25,001,405
0.55%, 8/12/09 ** 44,000,000 43,992,606
0.58%, 10/2/09 (a) 25,000,000 25,009,705
0.61%, 8/20/09 (a) (c) 25,000,000 24,974,524
0.65%, 9/10/09 (a) (c) 15,000,000 15,000,000
0.65%, 5/11/10 11,500,000 11,513,621
0.70%, 6/25/10 5,000,000 5,000,000
0.79%, 8/19/09 (a) (c) 20,000,000 20,015,139
0.83%, 11/18/09 ** 5,000,000 4,987,435
0.87%, 1/26/10 10,000,000 9,993,660
0.90%, 8/3/09 (a) (c) 25,000,000 25,000,000
2.25%, 10/2/09 9,865,000 9,896,325
2.38%, 4/30/10 12,235,000 12,375,995
2.56%, 8/4/09 15,000,000 15,002,199
2.63%, 3/12/10 10,000,000 10,109,888
2.72%, 9/18/09 5,000,000 4,997,426
3.00%, 6/11/10 20,250,000 20,675,518
3.10%, 2/4/10 10,500,000 10,637,445
3.50%, 1/6/10 5,000,000 5,054,996
3.75%, 1/8/10 13,385,000 13,559,503
4.25%, 11/20/09 4,000,000 4,043,994
4.38%, 3/17/10 9,290,000 9,508,782
4.50%, 10/9/09 18,000,000 18,127,725
4.88%, 5/14/10 10,415,000 10,773,603
5.00%, 12/11/09 22,750,000 23,089,022
5.00%, 3/12/10 3,715,000 3,808,697
5.25%, 8/5/09 14,750,000 14,756,950
------------
692,474,014
------------
FREDDIE MAC (21.7%)
0.15%, 8/3/09 ** 35,000,000 34,999,453
0.16%, 8/10/09 ** 25,000,000 24,999,000
0.16%, 8/24/09 ** 25,220,000 25,217,422
0.18%, 8/17/09 ** 25,000,000 24,998,000
0.19%, 8/24/09 (a) (c) 10,000,000 9,992,461
0.20%, 8/5/09 (a) (c) 25,000,000 24,986,789
0.21%, 9/9/09 ** 18,200,000 18,195,860
0.21%, 9/28/09 ** 25,000,000 24,991,743
0.22%, 8/19/09 (a) (c) 12,000,000 11,994,491
0.23%, 8/10/09 (a) (c) 15,000,000 14,999,342
0.26%, 8/18/09 (a) (c) 17,000,000 16,998,775
0.27%, 8/19/09 (a) (c) 18,000,000 17,998,447
0.27%, 8/21/09 (a) (c) 30,000,000 29,999,341
0.33%, 10/10/09 (a) (c) 25,000,000 25,000,000
0.45%, 9/21/09 ** 30,900,000 30,880,845
0.51%, 9/14/09 ** 35,100,000 35,078,403
0.54%, 1/4/10 ** 5,500,000 5,487,130
0.55%, 9/1/09 ** 22,000,000 21,989,581
0.62%, 8/3/09 (a) (c) 25,000,000 25,000,000
0.64%, 11/13/09 ** 20,000,000 19,964,033
Continued
14
INSTITUTIONAL GOVERNMENT MONEY MARKET
SCHEDULE OF INVESTMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. GOVERNMENT AGENCIES, CONTINUED
FREDDIE MAC, CONTINUED
0.88%, 8/4/09 (a) (c) $ 25,000,000 $ 25,000,000
1.25%, 3/18/10 10,000,000 10,009,623
3.13%, 2/4/10 10,000,000 10,103,342
4.00%, 12/15/09 11,135,000 11,269,105
4.13%, 9/1/09 10,000,000 10,032,276
4.13%, 11/30/09 10,000,000 10,110,507
4.25%, 2/24/10 2,300,000 2,340,873
4.38%, 3/1/10 8,302,000 8,471,001
4.75%, 11/3/09 19,750,000 19,949,327
4.88%, 2/9/10 29,770,000 30,411,052
6.63%, 9/15/09 6,500,000 6,537,881
-------------
588,006,103
-------------
OVERSEAS PRIVATE INVESTMENT CORP. (4.2%)
0.25%, 8/5/09 (a) (c) 29,400,000 29,400,000
0.25%, 8/5/09 (a) (c) 49,114,000 49,114,000
0.25%, 8/5/09 (a) (c) 18,824,000 18,824,000
0.25%, 8/5/09 (a) (c) 15,000,000 15,000,000
-------------
112,338,000
-------------
TOTAL U.S. GOVERNMENT AGENCIES 1,671,574,521
-------------
U.S. TREASURY OBLIGATIONS (0.9%)
U.S. TREASURY BILLS (0.9%)
0.33%, 12/24/09 ** 25,000,000 24,966,368
-------------
TOTAL U.S. TREASURY OBLIGATIONS 24,966,368
-------------
SHARES
----------
MONEY MARKETS (7.9%)
AIM STIT Government & Agency
Portfolio (b) 96,590,873 96,590,873
Goldman Sachs Financial Square
Funds - Government Fund (b) 117,395,536 117,395,536
-------------
TOTAL MONEY MARKETS 213,986,409
-------------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
REPURCHASE AGREEMENTS (26.4%)
Bank of America Securities, LLC, 0.17%,
dated 7/31/09, due 8/3/09, (Proceeds
at maturity, $275,003,896,
Collateralized by various U.S.
Government Agency Securities,
0.00%-1.38%, 11/12/09-6/15/11,
value $280,500,121) $275,000,000 $275,000,000
Barclays PLC, 0.20%, dated 7/31/09, due
8/3/09, (Proceeds at maturity,
$215,003,583, Collateralized by
various U.S. Treasury Securities,
0.00%-1.38%, 9/24/09-5/15/12,
value $219,300,080) 215,000,000 215,000,000
Deutsche Bank, 0.19%, dated 7/31/09,
due 8/3/09, (Proceeds at maturity,
$205,003,246, Collateralized by
various U.S. Government Agency
Securities, 0.00%-4.65%,
2/1/11-1/27/14, value
$209,100,073) 205,000,000 205,000,000
UBS Investment Bank, 0.17%, dated
7/31/09, due 8/3/09, (Proceeds at
maturity, $19,211,272, Collateralized
by Federal Farm Credit Bank,
0.52%, 2/11/10, value $19,597,053) 19,211,000 19,211,000
--------------
TOTAL REPURCHASE AGREEMENTS 714,211,000
--------------
TOTAL INVESTMENTS (COST $2,702,645,347)(+) - 99.8% 2,702,645,347
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 4,080,088
--------------
NET ASSETS - 100.0% $2,706,725,435
==============
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, 2009.
(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.
15
U.S. TREASURY MONEY MARKET
SCHEDULE OF INVESTMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- ----------
CORPORATE BONDS (2.8%)
DIVERSIFIED FINANCIAL SERVICES (2.4%)
General Electric Capital Corp.,
1.03%, 9/9/09 (a) (c) (d) $ 40,000,000 $ 40,221,054
-------------
FINANCE-INVESTMENT BANKER/BROKER (0.4%)
Citigroup Funding, Inc., 0.59%,
10/30/09 (a) (c) (d) 7,450,000 7,472,339
-------------
TOTAL CORPORATE BONDS 47,693,393
-------------
U.S. TREASURY BILLS (42.6%)
0.16%, 8/13/09 ** 50,000,000 49,997,296
0.20%, 9/24/09 ** 50,000,000 49,985,037
0.22%, 10/29/09 ** 50,000,000 49,973,424
0.26%, 11/12/09 ** 25,000,000 24,981,403
0.29%, 10/1/09 ** 50,000,000 49,976,045
0.29%, 11/27/09 ** 15,000,000 14,985,742
0.29%, 1/21/10 ** 25,000,000 24,964,619
0.29%, 1/28/10 ** 25,000,000 24,964,438
0.32%, 10/8/09 ** 25,000,000 24,984,911
0.33%, 12/24/09 ** 25,000,000 24,966,368
0.38%, 9/17/09 ** 25,000,000 24,987,777
0.39%, 9/10/09 ** 50,000,000 49,978,486
0.39%, 10/22/09 ** 65,000,000 64,943,585
0.42%, 2/11/10 ** 25,000,000 24,944,090
0.44%, 8/6/09 ** 50,000,000 49,997,092
0.45%, 9/15/09 ** 25,000,000 24,986,094
0.47%, 12/17/09 ** 50,000,000 49,911,690
0.48%, 8/20/09 ** 25,000,000 24,993,733
0.50%, 11/19/09 ** 60,000,000 59,909,861
0.50%, 4/1/10 ** 20,000,000 19,933,175
-------------
TOTAL U.S. TREASURY BILLS 734,364,866
-------------
U.S. TREASURY NOTES (12.0%)
1.75%, 3/31/10 25,000,000 25,216,609
3.13%, 11/30/09 30,000,000 30,265,054
3.63%, 1/15/10 50,000,000 50,697,802
3.63%, 6/15/10 15,000,000 15,378,683
4.00%, 8/31/09 75,000,000 75,174,428
4.00%, 9/30/09 10,000,000 10,056,334
-------------
TOTAL U.S. TREASURY NOTES 206,788,910
-------------
SHARES
MONEY MARKETS (0.2%)
AIM STIT Treasury Portfolio (b) 599,854 599,854
Goldman Sachs Financial Square
Funds - Treasury Obligations
Fund (b) 2,679,076 2,679,076
-------------
TOTAL MONEY MARKETS 3,278,930
-------------
Continued
PRINCIPAL
AMOUNT VALUE
---------- ----------
REPURCHASE AGREEMENTS (42.3%)
Bank of America Securities, LLC, 0.17%,
dated 7/31/09, due 8/3/09, (Proceeds
at maturity, $167,515,373,
Collateralized by various U.S.
Treasury Securities, 1.88%-2.38%,
7/15/13-1/15/25,
value $170,863,305) $167,513,000 $167,513,000
Barclays PLC, 0.20%, dated 7/31/09, due
8/3/09, (Proceeds at maturity,
$210,003,500, Collateralized by U.S.
Treasury Bill, 0.00%, 9/24/09,
value $214,200,036) 210,000,000 210,000,000
BMO Nesbitt Burns, 0.18%, dated
7/31/09, due 8/3/09, (Proceeds at
maturity, $100,001,500, Collateralized
by various U.S. Treasury Securities,
0.00%-3.25%, 10/22/09-7/31/16,
value $102,000,079) 100,000,000 100,000,000
Deutsche Bank, 0.18%, dated 7/31/09,
due 8/3/09, (Proceeds at maturity,
$250,003,750, Collateralized by
various U.S. Treasury Securities,
0.00%-6.13%, 1/21/10-11/15/27,
value $255,000,012) 250,000,000 250,000,000
--------------
TOTAL REPURCHASE AGREEMENTS 727,513,000
--------------
TOTAL INVESTMENTS (COST $1,719,639,099)(+) - 99.9% 1,719,639,099
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 1,688,334
--------------
NET ASSETS - 100.0% $1,721,327,433
==============
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, 2009.
(b) Investment is in Institutional Shares of underlying fund/portfolio.
(c) Maturity date is next rate reset date.
(d) FDIC guaranteed through Treasury Liquidity Guarantee Program.
See notes to schedules of investments
and notes to financial statements.
16
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17
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2009
- --------------------------------------------------------------------------------
INSTITUTIONAL
PRIME INSTITUTIONAL GOVERNMENT U.S. TREASURY
ASSETS: MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
--------------- --------------- --------------- ---------------
Investments, at amortized cost and value $ 1,121,088,692 $ 2,664,355,265 $ 1,988,434,347 $ 992,126,099
Repurchase agreement, at cost and value 152,696,000 462,678,000 714,211,000 727,513,000
--------------- --------------- --------------- ---------------
Total Investments 1,273,784,692 3,127,033,265 2,702,645,347 1,719,639,099
Cash 125 699 531 925
Interest receivable 2,515,221 6,809,614 4,828,973 1,921,328
Receivable for Fund shares sold 137,620 492,402 3,789 16,866
Prepaid expenses and other assets 123,432 197,885 131,327 189,584
--------------- --------------- --------------- ---------------
Total Assets 1,276,561,090 3,134,533,865 2,707,609,967 1,721,767,802
--------------- --------------- --------------- ---------------
LIABILITIES:
Distributions payable 87,134 413,642 286,611 89,157
Payable for investments purchased 11,568,964 25,085,333 -- 1,877
Payable for Fund shares redeemed 152,845 5 40,000 276
Accrued expenses and other payables:
Payable to Advisor and affiliates 469,021 521,628 396,765 215,859
Distribution and administrative servicing fee 116,299 95,709 90,717 68,796
Other 133,205 80,948 70,439 64,404
--------------- --------------- --------------- ---------------
Total Liabilities 12,527,468 26,197,265 884,532 440,369
--------------- --------------- --------------- ---------------
NET ASSETS:
Paid-in Capital $ 1,264,137,912 $ 3,108,412,508 $ 2,706,730,275 $ 1,721,319,275
Accumulated net investment income 88,669 6,520 1,706 8,158
Accumulated net realized loss from
investment transactions (192,959) (82,428) (6,546) --
--------------- --------------- --------------- ---------------
Net Assets $ 1,264,033,622 $ 3,108,336,600 $ 2,706,725,435 $ 1,721,327,433
=============== =============== =============== ===============
NET ASSETS:
Institutional Shares $ 723,023,572 $ 2,507,707,546 $ 2,058,232,725 $ 1,305,329,239
Class A Shares 537,554,584 NA NA NA
Class B Shares 2,600,503 NA NA NA
Class C Shares 854,963 NA NA NA
Select Shares NA 117,441,220 113,374,623 24,742,942
Preferred Shares NA 165,805,916 376,799,659 295,058,072
Trust Shares NA 317,381,918 158,318,428 96,197,180
--------------- --------------- --------------- ---------------
Total $ 1,264,033,622 $ 3,108,336,600 $ 2,706,725,435 $ 1,721,327,433
=============== =============== =============== ===============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value):
Institutional Shares 723,183,561 2,507,789,977 2,058,263,206 1,305,220,054
Class A Shares 537,671,210 NA NA NA
Class B Shares 2,601,985 NA NA NA
Class C Shares 854,967 NA NA NA
Select Shares NA 117,444,028 113,375,626 24,737,727
Preferred Shares NA 165,803,692 376,798,362 295,005,717
Trust Shares NA 317,379,980 158,316,743 96,186,835
--------------- --------------- --------------- ---------------
Total 1,264,311,723 3,108,417,677 2,706,753,937 1,721,150,333
=============== =============== =============== ===============
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.
18
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2009
- --------------------------------------------------------------------------------
INSTITUTIONAL
PRIME INSTITUTIONAL GOVERNMENT U.S. TREASURY
INVESTMENT INCOME: MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
--------------- --------------- --------------- ---------------
Interest income $ 26,479,784 $ 47,019,766 $ 25,131,360 $ 16,931,155
Dividend income 1,259,435 2,375,878 1,191,467 232,598
--------------- --------------- --------------- ---------------
Total Income 27,739,219 49,395,644 26,322,827 17,163,753
--------------- --------------- --------------- ---------------
EXPENSES:
Investment advisory fees 5,934,575 11,571,778 9,321,621 9,005,061
Administration fees 2,568,930 5,009,728 4,035,978 3,898,260
Distribution servicing fees - Class A 1,577,879 NA NA NA
Distribution servicing fees - Class B 31,244 NA NA NA
Distribution servicing fees - Class C 7,427 NA NA NA
Administrative servicing fees - Class C 2,476 NA NA NA
Administrative servicing fees - Select Shares NA 100,107 60,603 35,160
Administrative servicing fees - Preferred Shares NA 185,139 574,884 721,795
Administrative servicing fees - Trust Shares NA 760,936 566,430 312,844
Accounting fees 257,844 402,035 342,883 333,705
Registration and filing fees 27,487 24,295 17,931 17,642
Transfer and dividend disbursing agent fees 90,923 141,907 102,484 125,208
Custody fees 50,676 70,607 70,734 77,302
Trustees' fees and expenses 63,991 114,185 80,895 92,385
Treasury Guarantee Program expense 563,069 939,514 556,537 831,588
Professional fees and other expenses 305,696 142,302 166,736 252,633
--------------- --------------- --------------- ---------------
Total expenses 11,482,217 19,462,533 15,897,716 15,703,583
--------------- --------------- --------------- ---------------
Less: Waiver and/or reimbursement from Advisor
and/or affiliates (1,410,667) (11,399,317) (9,265,330) (9,168,874)
--------------- --------------- --------------- ---------------
Net Expenses 10,071,550 8,063,216 6,632,386 6,534,709
--------------- --------------- --------------- ---------------
NET INVESTMENT INCOME 17,667,669 41,332,428 19,690,441 10,629,044
--------------- --------------- --------------- ---------------
Net realized gains/(losses) on investments 14,024 35,809 (6,545) 38,452
--------------- --------------- --------------- ---------------
Change in net assets resulting from operations $ 17,681,693 $ 41,368,237 $ 19,683,896 $ 10,667,496
=============== =============== =============== ===============
See notes to financial statements.
19
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
PRIME
MONEY MARKET
------------------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2009 2008
--------------- ---------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 17,667,669 $ 48,001,869
Net realized gains/(losses) from investment transactions 14,024 (114,669)
--------------- ---------------
Change in net assets resulting from operations 17,681,693 47,887,200
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares (10,944,254) (26,717,961)
Class A Shares (6,701,724) (21,685,963)
Class B Shares (16,233) (45,877)
Class C Shares (5,743) (27,756)
Advisor Shares NA (3,368)
Select Shares NA NA
Preferred Shares NA NA
Trust Shares NA NA
--------------- ---------------
Change in net assets from Fund shareholder distributions (17,667,954) (48,480,925)
--------------- ---------------
Change in net assets from fund share transactions (353,716,571) 384,210,602
--------------- ---------------
Change in net assets (353,702,832) 383,616,877
NET ASSETS:
Beginning of period 1,617,736,454 1,234,119,577
--------------- ---------------
End of period $ 1,264,033,622 $ 1,617,736,454
=============== ===============
Accumulated net investment income $ 88,669 $ 90,403
=============== ===============
See notes to financial statements.
20
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
INSTITUTIONAL INSTITUTIONAL GOVERNMENT
MONEY MARKET MONEY MARKET
------------------------------- -------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
-------------- -------------- -------------- --------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 41,332,428 $ 101,931,586 $ 19,690,441 $ 43,035,238
Net realized gains/(losses) from investment transactions 35,809 (117,541) (6,545) 13,340
-------------- -------------- -------------- --------------
Change in net assets resulting from operations 41,368,237 101,814,045 19,683,896 43,048,578
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares (34,052,552) (83,234,532) (14,141,762) (28,163,923)
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 (1,855,064) (3,522,646) (639,427) (931,736)
Preferred Shares (1,626,668) (5,293,072) (3,062,459) (8,964,667)
Trust Shares (3,847,827) (9,880,880) (1,872,559) (4,974,914)
-------------- -------------- -------------- --------------
Change in net assets from Fund shareholder distributions (41,382,111) (101,931,130) (19,716,207) (43,035,240)
-------------- -------------- -------------- --------------
Change in net assets from fund share transactions 184,526,242 858,112,405 1,416,187,748 435,693,670
-------------- -------------- -------------- --------------
Change in net assets 184,512,368 857,995,320 1,416,155,437 435,707,008
NET ASSETS:
Beginning of period 2,923,824,232 2,065,828,912 1,290,569,998 854,862,990
-------------- -------------- -------------- --------------
End of period $3,108,336,600 $2,923,824,232 $2,706,725,435 $1,290,569,998
============== ============== ============== ==============
Accumulated net investment income $ 6,520 $ 53,070 $ 1,706 $ 12,376
============== ============== ============== ==============
U.S. TREASURY
MONEY MARKET
-------------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2009 2008
-------------- --------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income $ 10,629,044 $ 40,704,206
Net realized gains/(losses) from investment transactions 38,452 1,029
-------------- --------------
Change in net assets resulting from operations 10,667,496 40,705,235
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares (8,035,343) (21,579,960)
Class A Shares NA NA
Class B Shares NA NA
Class C Shares NA NA
Advisor Shares NA NA
Select Shares (151,465) (1,810,814)
Preferred Shares (2,007,705) (14,936,228)
Trust Shares (439,475) (3,042,493)
-------------- --------------
Change in net assets from Fund shareholder distributions (10,633,988) (41,369,495)
-------------- --------------
Change in net assets from fund share transactions (141,261,298) 831,633,466
-------------- --------------
Change in net assets (141,227,790) 830,969,206
NET ASSETS:
Beginning of period 1,862,555,223 1,031,586,017
-------------- --------------
End of period $1,721,327,433 $1,862,555,223
============== ==============
Accumulated net investment income $ 8,158 $ 10,442
============== ==============
See notes to financial statements.
21
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
PRIME
MONEY MARKET
--------------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2009 2008
-------------- --------------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 1,447,894,942 1,815,668,264
Shares issued in connection with
acquisition of Government
Money Market Fund ~ -- 114,584,790
Dividends reinvested 1,686,958 4,257,721
Shares redeemed (1,619,326,625) (1,647,434,091)
-------------- --------------
Total Institutional Shares (169,744,725) 287,076,684
-------------- --------------
Class A Shares
Shares issued 764,807,283 772,343,518
Shares issued in connection with
acquisition of Government
Money Market Fund ~ -- 90,753,659
Shares issued in conversion
from Advisor Class @ -- 178,339
Dividends reinvested 6,683,342 21,637,624
Shares redeemed (955,422,760) (788,502,287)
-------------- --------------
Total Class A Shares (183,932,135) 96,410,853
-------------- --------------
Class B Shares
Shares issued 2,738,356 1,647,430
Dividends reinvested 6,012 18,913
Shares redeemed (2,534,090) (742,961)
-------------- --------------
Total Class B Shares 210,278 923,382
-------------- --------------
Class C Shares
Shares issued 525,511 261,703
Dividends reinvested 5,421 27,058
Shares redeemed (778,744) (251,679)
-------------- --------------
Total Class C Shares (247,812) 37,082
-------------- --------------
Advisor Shares
Shares issued NA 3,046
Dividends reinvested NA 2,730
Shares redeemed NA (242,902)
-------------- --------------
Total Advisor Shares NA (237,126)
-------------- --------------
Select Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Select Shares NA NA
-------------- --------------
Preferred Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Preferred Shares NA NA
-------------- --------------
Trust Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Trust Shares NA NA
-------------- --------------
- -----------------
* Share transactions are at a Net Asset Value of $1.00 per share.
~ Shares merged November 16, 2007.
@ Advisor shares merged into Class A shares on November 26, 2007.
See notes to financial statements.
22
FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND
SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
INSTITUTIONAL INSTITUTIONAL GOVERNMENT
MONEY MARKET MONEY MARKET
------------------------------- -------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2009 2008 2009 2008
-------------- -------------- -------------- --------------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 9,060,498,809 9,279,562,987 7,559,025,399 4,218,113,932
Shares issued in connection with
acquisition of Government
Money Market Fund ~ -- -- -- --
Dividends reinvested 17,780,796 43,313,612 5,501,119 8,297,672
Shares redeemed (8,950,954,448) (8,629,779,632) (6,287,174,892) (3,932,555,301)
-------------- -------------- -------------- --------------
Total Institutional Shares 127,325,157 693,096,967 1,277,351,626 293,856,303
-------------- -------------- -------------- --------------
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 683,983,020 667,561,897 405,884,053 213,606,505
Dividends reinvested 1,126,119 2,537,089 527,291 615,050
Shares redeemed (678,077,650) (619,584,202) (336,828,569) (184,411,112)
-------------- -------------- -------------- --------------
Total Select Shares 7,031,489 50,514,784 69,582,775 29,810,443
-------------- -------------- -------------- --------------
Preferred Shares
Shares issued 1,039,110,858 2,661,633,186 1,358,825,001 1,172,811,192
Dividends reinvested 1,346,050 4,179,027 2,253,571 5,900,344
Shares redeemed (996,138,746) (2,631,945,550) (1,230,271,195) (1,157,858,627)
-------------- -------------- -------------- --------------
Total Preferred Shares 44,318,162 33,866,663 130,807,377 20,852,909
-------------- -------------- -------------- --------------
Trust Shares
Shares issued 374,533,003 455,625,287 331,577,993 360,941,316
Dividends reinvested 392,015 1,074,751 279,933 515,231
Shares redeemed (369,074,072) (376,068,648) (393,411,663) (270,265,761)
-------------- -------------- -------------- --------------
Total Trust Shares 5,850,946 80,631,390 (61,553,737) 91,190,786
-------------- -------------- -------------- --------------
U.S. TREASURY
MONEY MARKET
-------------------------------
YEAR YEAR
ENDED ENDED
JULY 31, JULY 31,
2009 2008
-------------- --------------
SHARE TRANSACTIONS:*
Institutional Shares
Shares issued 6,355,929,792 3,009,576,882
Shares issued in connection with
acquisition of Government
Money Market Fund ~ -- --
Dividends reinvested 2,299,091 3,265,423
Shares redeemed (6,269,946,880) (2,215,814,929)
-------------- --------------
Total Institutional Shares 88,282,003 797,027,376
-------------- --------------
Class A Shares
Shares issued NA NA
Shares issued in connection with
acquisition of Government
Money Market Fund ~ NA NA
Shares issued in conversion
from Advisor Class @ NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Class A Shares NA NA
-------------- --------------
Class B Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Class B Shares NA NA
-------------- --------------
Class C Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Class C Shares NA NA
-------------- --------------
Advisor Shares
Shares issued NA NA
Dividends reinvested NA NA
Shares redeemed NA NA
-------------- --------------
Total Advisor Shares NA NA
-------------- --------------
Select Shares
Shares issued 84,816,976 348,155,051
Dividends reinvested 18,697 10,580
Shares redeemed (80,625,209) (391,477,414)
-------------- --------------
Total Select Shares 4,210,464 (43,311,783)
-------------- --------------
Preferred Shares
Shares issued 1,413,978,909 2,317,188,382
Dividends reinvested 376,100 1,231,619
Shares redeemed (1,600,213,299) (2,310,106,806)
-------------- --------------
Total Preferred Shares (185,858,290) 8,313,195
-------------- --------------
Trust Shares
Shares issued 381,149,029 577,531,488
Dividends reinvested 423 --
Shares redeemed (429,043,815) (507,943,553)
-------------- --------------
Total Trust Shares (47,894,363) 69,587,935
-------------- --------------
See notes to financial statements.
23
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET REALIZED
NET ASSET AND UNREALIZED LESS
VALUE, NET GAINS/ DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET INSTITUTIONAL SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS A SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS B SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS C SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET SELECT SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET PREFERRED SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET TRUST SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
24
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET 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 7/31/09 $1.00 1.23% $ 723,024 0.66%# 0.58%# 1.29%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS A SHARES
Year ended 7/31/09 $1.00 0.99% $ 537,555 0.91%# 0.81%#+ 1.06%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS B SHARES
Year ended 7/31/09 $1.00 0.52% $ 2,600 1.67%# 1.29%#+ 0.52%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET CLASS C SHARES
Year ended 7/31/09 $1.00 0.52% $ 855 1.66%# 1.31%#+ 0.58%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET INSTITUTIONAL SHARES
Year ended 7/31/09 $1.00 1.53% $2,507,708 0.64%# 0.24%# 1.45%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET SELECT SHARES
Year ended 7/31/09 $1.00 1.45% $ 117,441 0.72%# 0.32%# 1.48%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET PREFERRED SHARES
Year ended 7/31/09 $1.00 1.38% $ 165,806 0.79%# 0.39%# 1.32%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET TRUST SHARES
Year ended 7/31/09 $1.00 1.28% $ 317,382 0.89%# 0.49%#+ 1.26%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
25
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET REALIZED
NET ASSET AND UNREALIZED LESS
VALUE, NET GAINS/ DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) FROM TO
OF PERIOD INCOME INVESTMENTS SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET INSTITUTIONAL SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET PREFERRED SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET TRUST SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET INSTITUTIONAL SHARES
Year ended 7/31/09 $1.00 0.01(3) --^ (0.01)
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)
- --------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET SELECT SHARES
Year ended 7/31/09 $1.00 --^(3) --^ --^
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)
- --------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET PREFERRED SHARES
Year ended 7/31/09 $1.00 --^(3) --^ --^
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)
- --------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET TRUST SHARES
Year ended 7/31/09 $1.00 --^(3) --^ --^
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)
- --------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
26
FIFTH THIRD FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------
RATIOS OF RATIOS OF RATIOS OF
NET 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 7/31/09 $1.00 1.06% $2,058,233 0.63%# 0.23%# 0.86%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET SELECT SHARES
Year ended 7/31/09 $1.00 0.98% $ 113,374 0.71%# 0.31%# 0.84%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET PREFERRED SHARES
Year ended 7/31/09 $1.00 0.90% $ 376,800 0.78%# 0.38%#+ 0.80%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL GOVERNMENT MONEY MARKET TRUST SHARES
Year ended 7/31/09 $1.00 0.81% $ 158,318 0.88%# 0.47%#+ 0.83%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET INSTITUTIONAL SHARES
Year ended 7/31/09 $1.00 0.53% $1,305,329 0.65%# 0.25%# 0.50%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET SELECT SHARES
Year ended 7/31/09 $1.00 0.46% $ 24,743 0.73%# 0.33%#+ 0.34%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET PREFERRED SHARES
Year ended 7/31/09 $1.00 0.39% $ 295,058 0.80%# 0.39%#+ 0.42%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET TRUST SHARES
Year ended 7/31/09 $1.00 0.33% $ 96,197 0.90%# 0.46%#+ 0.35%
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%
- -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights
and notes to financial statements.
27
FIFTH THIRD FUNDS
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(a) Before waivers and reimbursements.
(b) Net of waivers and reimbursements.
^ Amount is less than $0.005.
(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 Citi (formerly BISYS Fund
Services), a former service provider to the Funds. See Note 4 in Notes to
Financial Statements for further information. 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.
# Includes expense for the U. S. Department of the Treasury's Temporary
Guarantee Program for Money Market Funds. This expense is being borne by
the Funds without regard to any expense limitation currently in effect.
Prime Money Market 0.04%
Institutional Money Market 0.03%
Institutional Government Money Market 0.02%
U.S. Treasury Money Market 0.04%
+ The Advisor waived additional expenses to maintain a competitive yield as
follows:
Prime Money Market
Class A Shares 0.02%
Class B Shares 0.29%
Class C Shares 0.27%
Institutional Money Market
Trust Shares --^
Institutional Government Money Market
Preferred Shares --^
Trust Shares 0.01%
US Treasury Money Market
Select Shares --^
Preferred Shares 0.01%
Trust Shares 0.04%
^ Amount is less than 0.005%
See notes to financial statements.
28
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2009
- --------------------------------------------------------------------------------
(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
twenty-four separate investment portfolios.
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")
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's 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.
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 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 VALUATION--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.
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.
29
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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 servicing
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, 2009, reclassifications were recorded as follows:
INCREASE (DECREASE) INCREASE (DECREASE)
UNDISTRIBUTED NET UNDISTRIBUTED NET INCREASE (DECREASE)
INVESTMENT INCOME REALIZED GAIN (LOSS) PAID-IN-CAPITAL
- -----------------------------------------------------------------------------------------------------
Prime Money Market $ 1,866 $ -- $ (1,866)
Institutional Money Market 3,133 -- (3,133)
Institutional Government Money Market 15,096 (13,045) (2,051)
U.S. Treasury Money Market 2,660 20,364 (23,024)
GUARANTEES AND INDEMNIFICATIONS -- Under the Trust's organizational documents,
its Officers and Board of Trustees ("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.
FEDERAL TAXES--It is the intention of each Fund to 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 it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income or
excise taxes has been made.
In accordance with Financial Accounting Standards Board ("FASB") Interpretation
No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB
Statement No. 109 ("FIN 48"), 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, 2009, 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. While the statute of limitations remains open
to examine the Funds' U.S. tax returns filed for the fiscal years from
2006-2008, 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.
RECENT ACCOUNTING PRONOUNCEMENTS-- Effective August 1, 2008, the Funds adopted
FASB Statement of Financial Accounting Standards No. 157, Fair Value
Measurements ("FAS 157"). In accordance with FAS 157, fair value is defined as
the price that a Fund would receive or pay to sell an asset or transfer a
liability in an orderly transaction between market participants at the
measurement date. FAS 157 establishes and requires disclosure of a fair value
hierarchy, separately for each major category of assets and liabilities, that
segregates fair value measurements into levels based upon inputs using quoted
prices in active markets for identical assets or liabilities (Level 1),
significant other observable inputs (Level 2), and significant unobservable
inputs (Level 3). Valuation levels are not necessarily an indication of the
risk associated with investing in those securities.
30
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
For fair value measurements using significant unobservable inputs (Level 3),
FAS 157 requires a reconciliation of the beginning to ending balances for
reported market values that presents changes attributable to total realized and
unrealized gains or losses, purchases and sales, and transfers in/out of the
Level 3 hierarchy categorization during the period. Level 3 holdings transfer
in at beginning of period values and transfer out at end of period values.
Total realized and unrealized gains and losses of Level 3 holdings are included
in net realized and unrealized gains and losses in the Funds' Statements of
Operations.
Effective July 31, 2009, the Funds adopted FASB Staff Position No. 157-4,
Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are
Not Orderly ("FSP 157-4"). FSP 157-4 provides additional guidance for
estimating fair value in accordance with FAS 157, when the volume and level of
activity for the asset or liability have significantly decreased as well as
guidance on identifying circumstances that indicate a transaction is not
orderly. See Note 8 for information about Fair Value Measurements.
Effective February 1, 2009, the Funds adopted FASB Statement of Financial
Accounting Standards No. 161, Disclosures about Derivative Instruments and
Hedging Activities, an amendment of FASB Statement No. 133 ("FAS 161"). FAS 161
requires enhanced disclosures about Funds' derivative and hedging activities,
including Funds' objectives for using derivatives and the strategies to achieve
those objectives, quantitative disclosures about fair value amounts of and gains
and losses on derivatives and disclosures about counterparty credit exposure
related to derivatives. The Funds do not hold derivatives as of the date of this
report.
The Funds adopted FASB Statement of Financial Accounting Standards No, 165,
Subsequent Events ("FAS 165"). FAS 165 requires the Funds to recognize the
effects of events that provide additional evidence about conditions that
existed at balance sheet date, including estimates inherent in the process of
preparing financial statements.
(3) SECURITIES AND OTHER INVESTMENTS
REPURCHASE AGREEMENTS--The Funds may enter into repurchase agreements only with
banks and other recognized financial institutions, such as broker/dealers,
which are deemed by Fifth Third Asset Management, Inc. ("FTAM" or the
"Advisor") to be creditworthy pursuant to guidelines and/or standards reviewed
or established by the Trustees. It is the policy of the Funds to require the
custodian or sub-custodian bank to take possession or have legally segregated
in the Federal Reserve Book Entry System, 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.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery ("TBAs") 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; a sufficient amount of
cash and/or securities is segregated as collateral.
(4) 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 the table of advisory
fees, waivers and expense limitations below.
31
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
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, 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, 2009.
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% $ 805,680
Institutional Money Market 0.40% 0.30% C 0.07% 0.21% NA NA NA $7,547,757
Institutional Government Money Market 0.40% 0.30% C 0.045% 0.21% NA NA NA $6,847,542
U.S. Treasury Money Market 0.40% 0.30% C 0.10% 0.21% NA NA NA $5,804,647
* The annual limitations shown include 12b-1 or administrative services fees
and are net of all waivers, voluntary or contractual. The annual limi-
tations 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, and U.S. Treasury Money Market.
** C - Contractual
*** The cumulative amounts waived and/or reimbursed which may be potentially
recoverable by FTAM under the expense limitation agreements for the period
from November 29, 2008 through July 31, 2009.
++ Because the Treasury Temporary Guarantee Program expense is excluded from
these funds' expense limitation, Net Expenses are expected to exceed the
applicable expense limitation by the estimated amount of this item.
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.
32
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
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.
CLASS DISTRIBUTION/SERVICING FEE
------- --------------------------
Class A 0.25%
Class B 1.00%
Class C 0.75%
In addition, the Distributor earned contingent deferred sales commissions
(CDSC) on certain redemptions of Class A, B and C shares (all of which is paid
to the finance agent who financed advance commissions, as applicable, on sales
of these shares). FTAM is the Class C advance commission finance agent. CDSCs
on Class C shares for the period ended as of this report date were $6,582 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 $2,843,909 for the period ended as of the report
date. The Distributor voluntarily waived shareholder servicing fees of $98,407
in Prime Money Market, $1,038 in Institutional Money Market, $21,921 in
Institutional Government Money Market and $97,322 in U.S Treasury Money Market
during the period.
ADMINISTRATIVE SERVICING FEE--The Trust has an Administrative Service Agreement
with the Distributor with respect to Class C, Select, Preferred and Trust
shares. Under the Agreement, 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) receives fees
computed at annual rates up to those shown below, based on average daily net
assets of the respective classes.
CLASS ADMINISTRATIVE SERVICING FEE
--------- ----------------------------
Class C 0.25%
Select 0.08%
Preferred 0.15%
Trust 0.25%
TRANSFER AND DIVIDEND DISBURSING AGENT--Pursuant to a Services Agreement with
the Trust dated May 14, 2007, FTAM provides certain services on behalf of the
Trust. Under this agreement, FTAM's fees are paid monthly and are accrued daily
based upon each Fund of the Trust's relative average daily net assets, at the
aggregate annual amount 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. 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-- Citi (formerly BISYS Fund Services, Inc. ("Citi")),
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 Citi'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 Citi, 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 were allocated among the components of net assets for the fiscal
year ended July 31, 2007 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 not have changed had the payments
not been made; see the Notes to Financial Highlights.
33
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(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 generally is to borrow funds if necessary to meet
temporary or emergency cash needs, including to fund redemption requests that
might otherwise require the untimely disposition of securities. Borrowings may
not exceed 33 (1)[]3% of 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 a
fixed rate plus a spread determined by State Street. There were no borrowings
against the line of credit during the fiscal year.
(6) FEDERAL TAX INFORMATION
The tax character of distributions paid during the fiscal years ended July 31,
2009 and 2008 was as follows:
JULY 31, 2009 JULY 31, 2008
--------------- ---------------
ORDINARY INCOME ORDINARY INCOME
DISTRIBUTIONS DISTRIBUTIONS
--------------- ---------------
Prime Money Market $17,667,954 $ 48,480,925
Institutional Money Market 41,382,111 101,931,130
Institutional Government Money Market 19,716,207 43,035,240
U.S. Treasury Money Market 10,633,988 41,369,495
As of July 31, 2009, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
TOTAL
ACCUMULATED ACCUMULATED
UNDISTRIBUTED CAPITAL AND EARNINGS/
ORDINARY INCOME OTHER LOSSES (DEFICIT)
--------------- ------------ ------------
Prime Money Market $85,299 $(189,589) $(104,290)
Institutional Money Market 6,605 (82,513) (75,908)
Institutional Government Money Market 2,805 (7,645) (4,840)
U.S. Treasury Money Market 8,158 -- 8,158
As of July 31, 2009, 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
------------------------------
2014 2017 TOTAL
-------------------------------
Prime Money Market $92,314 $100,645 $192,959
Institutional Money Market 696 81,732 82,428
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, 2009, the following Fund deferred to August 1, 2009
post October capital losses of:
CAPITAL LOSSES
--------------
Institutional Government Money Market $6,545
During the tax year ended July 31, 2009, the Funds used/expired capital loss
carryforwards in the following amounts:
AMOUNT USED AMOUNT EXPIRED
----------- --------------
U.S. Treasury Money Market $38,452 $20,364
34
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
(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.
(8) FAIR VALUE MEASUREMENTS
The following is a summary of the fair value hierarchy according to the inputs
used as of July 31, 2009 in valuing the Funds' assets and liabilities:
FAIR VALUE MEASUREMENT AT 7/31/2009 USING
-----------------------------------------------------
QUOTED PRICES SIGNIFICANT
IN ACTIVE MARKETS OTHER SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS VALUE AT
(LEVEL 1) (LEVEL 2) (LEVEL 3) 7/31/09
-------------------------------------------------------------------
Prime Money Market
- ----------------------------------------
Corporate Bonds $ -- $ 103,227,734 $-- $ 103,227,734
Municipal Bonds -- 7,846,056 -- 7,846,056
U.S. Government Agencies -- 283,451,238 -- 283,451,238
Commercial Paper -- 270,718,069 -- 270,718,069
Demand Notes -- 88,507,000 -- 88,507,000
Municipal Demand Notes -- 270,113,000 -- 270,113,000
Money Markets 97,225,595 -- -- 97,225,595
Repurchase Agreements -- 152,696,000 -- 152,696,000
- ---------------------------------------- -------------------------------------------------------------------
Total $ 97,225,595 $1,176,559,097 $-- $1,273,784,692
===================================================================
Institutional Money Market
- ----------------------------------------
Corporate Bonds $ -- $ 255,180,086 $-- $ 255,180,086
Mortgage-Backed Securities -- 7,455,777 -- 7,455,777
Municipal Bonds -- 16,597,426 -- 16,597,426
U.S. Government Agencies -- 702,327,497 -- 702,327,497
Commercial Paper -- 730,737,270 -- 730,737,270
Demand Notes -- 140,965,000 -- 140,965,000
Municipal Demand Notes -- 568,462,000 -- 568,462,000
Money Markets 242,630,209 -- -- 242,630,209
Repurchase Agreements -- 462,678,000 -- 462,678,000
- ---------------------------------------- -------------------------------------------------------------------
Total $242,630,209 $2,884,403,056 $-- $3,127,033,265
===================================================================
Institutional Government Money Market
- ----------------------------------------
Mortgage-Backed Securities $ -- $ 77,907,049 $-- $ 77,907,049
U.S. Government Agencies -- 1,671,574,521 -- 1,671,574,521
U.S. Treasury Obligations -- 24,966,368 -- 24,966,368
Money Markets 213,986,409 -- -- 213,986,409
Repurchase Agreements -- 714,211,000 -- 714,211,000
- ---------------------------------------- -------------------------------------------------------------------
Total $213,986,409 $2,488,658,938 $-- $2,702,645,347
===================================================================
U.S. Treasury Money Market
- ----------------------------------------
Corporate Bonds $ -- $ 47,693,393 $-- $ 47,693,393
U.S. Treasury Bills -- 734,364,866 -- 734,364,866
U.S. Treasury Notes -- 206,788,910 -- 206,788,910
Money Markets 3,278,930 -- -- 3,278,930
Repurchase Agreements -- 727,513,000 -- 727,513,000
- ---------------------------------------- -------------------------------------------------------------------
Total $ 3,278,930 $1,716,360,169 $-- $1,719,639,099
===================================================================
The Funds did not have Level 3 holdings at the beginning or end of the year
ended July 31, 2009.
(9) U.S. DEPARTMENT OF THE TREASURY'S TEMPORARY GUARANTEE PROGRAM FOR MONEY
MARKET FUNDS
The Funds have entered into a Guarantee Agreement with the U.S. Department of
the Treasury (the "Treasury") to participate in the Treasury's Temporary
Guarantee Program for Money Market Funds (the
35
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 2009
- --------------------------------------------------------------------------------
"Program"). Subject to certain conditions and limitations, in the event that
the per share value of a Fund falls below $0.995 and the Fund liquidates its
holdings, the Program will provide coverage to Shareholders in the Fund for up
to $1.00 per share for the lesser of either the number of shares the investor
held in the Fund at the close of business on September 19, 2008 or the number
of shares the investor held the date the per share value fell below $0.995. Any
increase in the number of shares an investor holds after the close of business
on September 19, 2008 will not be covered by the Program. In addition, if an
investor closes his or her account with a Fund or broker-dealer, any future
investment in the Fund will not be guaranteed. Shares acquired by investors
after September 19, 2008 generally are not eligible for protection under the
Program.
The Program, which was originally set to expire on December 18, 2008, was
extended by the Treasury until September 18, 2009. Participation in the initial
term and the extended Program required a payment to the Treasury of 0.01% and
0.015%, respectively, multiplied by the number of each Fund's shares
outstanding as of September 19, 2008 (valued at $1.00 per share). This expense
was borne by the Funds without regard to any expense limitation in effect
during the period.
(10) SUBSEQUENT EVENTS
In accordance with the provision set forth in FAS 165, management has evaluated
the possibility of subsequent events existing in the Funds' financial
statements through September 22, 2009. Management has determined that there are
no additional material events that would require disclosure in the Funds'
financial statements through this date.
36
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, and Fifth Third U.S. Treasury
Money Market Fund (the "Funds") at July 31, 2009, and the results of each of
their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at July 31, 2009 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Kansas City, Missouri
September 22, 2009
37
FIFTH THIRD FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FIFTH THIRD FUNDS MANAGEMENT ^
The Trustees and Officers of the Funds, their 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(1) DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- -----------------------------------------------------------------------------------------------------------------------------------
Edward Burke Carey Chairman-Board January Carey Realty Investments, Inc. 24 Canisius
Age: 64 of Trustees 1989-Present (real estate development and College-Trustee.
consulting), President, 1990-Present.
David J. Durham Trustee June 2001- Chairman of Clipper Products, Inc., 24 None
Age: 64 Present a wholesale distributor, 2005-Present.
Chairman of Norris Products Corp.,
a wholesale distributor, 2005-Present.
President and Chief Executive Officer
of Clipper Products, Inc., 1997-Present.
J. Joseph Hale Jr. Trustee March EVP and Managing Director, DHR 24 Trustee for
Age: 59 2001-Present International (executive recruiter), Hanover College.
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 October AVP, PIANKO, Feb. 2002- 24 Printing
Age: 64 2001- Present Present. Business Industries of
Management Consultant, April America: Web Offset
2000-February 2002. Assoc., Director; Master
Printers of America,
Director.
David J. Gruber Trustee December President, DJG Financial Consulting 24 None
Age: 45 2003-Present (accounting and finance consultant),
June 2007-Present. Resources Global
Professionals, Project Professional,
December 2004-June 2007. Ohio Arts
& Sports Facilities Commission (state
funding oversight agency), CFO,
April 2003-December 2004. Ohio
Expositions Commission (state fair
and expo center), Finance Director,
April 1996-March 2003.
^ Additional disclosure can be found in the Statement of Additional
Information, which can be obtained by calling 1-800-282-5706.
38
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(1) DURING THE PAST 5 YEARS
- -------------------------------------------------------------------------------------------------------
E. Keith Wirtz President April President, Fifth Third Asset Management,
Age: 49 2007-Present Inc. 2003- Present, Managing Partner,
Paladin Investment Associates, LLC,
2000-2003.
Matthew A. Ebersbach Vice President March Vice President of Fifth Third Bank
Age: 39 2006-Present since 2001.
Richard B. Ille Vice President April Managing Director, Products and Marketing,
Age: 44 2007-Present Fifth Third Asset Management, Inc.,
2001-Present.
James A. Mautino Anti-Money February 2007- Vice President and Chief Compliance Officer,
Age: 41 Laundering and Present Fifth Third Asset Management, Inc. August
Chief Compliance 2005-Present, Director of Risk and
Officer Compliance, State Street Bank and Trust
Company, October 1995-July 2005.
Shannon King Treasurer March Vice President, Fifth Third Asset
Age: 37 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 April Vice President and Counsel of Fifth Third
Age: 36 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.
Ryan Casey Assistant Treasurer April Assistant Vice President, State Street Bank
Age: 36 2009-Present and Trust Company (a Massachusetts trust
company) from 2000 to Present.
Tracy Kaufman Assistant Treasurer June Assistant Vice President, State Street Bank
Age: 50 2007-Present and Trust Company (a Massachusetts trust
company) from 1986 to Present.
Francine S. Hayes Assistant Secretary June Vice President and Counsel, State Street
Age: 41 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.
(1) Each Trustee serves until the election and qualification of a successor, or
until death, resignation, retirement or removal as provided in the Trust's
Amended and Restated Declaration of Trust. Retirement occurs on the last
day of the fiscal year in which the Trustee's 72nd birthday occurs. The
Trust's Officers are elected annually by the Trustees.
39
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, 2009 through July
31, 2009.
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, an $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.
The expense ratio may vary period to period because of various factors, as a
result of expenses incurred that are outside the cap (such as dividends on
securities sold short, extraordinary expenses and interest expense.)
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
--------- --------- ---------------- ----------------
Prime Money Market Institutional Shares $1,000.00 $1,002.20 $2.93 0.59%
Class A Shares 1,000.00 1,001.10 4.02 0.81%
Class B Shares 1,000.00 1,000.20 4.91 0.99%
Class C Shares 1,000.00 1,000.30 4.91 0.99%
Institutional Money Market Institutional Shares 1,000.00 1,003.40 1.19 0.24%
Select Shares 1,000.00 1,003.00 1.59 0.32%
Preferred Shares 1,000.00 1,002.70 1.94 0.39%
Trust Shares 1,000.00 1,002.20 2.43 0.49%
Institutional Government Money Market Institutional Shares 1,000.00 1,001.90 1.14 0.23%
Select Shares 1,000.00 1,001.50 1.54 0.31%
Preferred Shares 1,000.00 1,001.20 1.89 0.38%
Trust Shares 1,000.00 1,000.80 2.28 0.46%
U.S. Treasury Money Market Institutional Shares 1,000.00 1,001.20 1.24 0.25%
Select Shares 1,000.00 1,000.80 1.64 0.33%
Preferred Shares 1,000.00 1,000.50 1.88 0.38%
Trust Shares 1,000.00 1,000.30 2.13 0.43%
- ----------------------
* 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.
40
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.
The expense ratio may vary period to period because of various factors, as a
result of expenses incurred that are outside the cap (such as dividends on
securities sold short, extraordinary expenses and interest expense.)
EXPENSE EXPENSE
BEGINNING ENDING PAID RATIO
ACCOUNT ACCOUNT DURING DURING
VALUE VALUE PERIOD* PERIOD
2/1/09 7/31/09 2/1/09 - 7/31/09 2/1/09 - 7/31/09
--------- --------- ---------------- ----------------
Prime Money Market Institutional Shares $1,000.00 $1,021.87 $2.96 0.59%
Class A Shares 1,000.00 1,020.78 4.06 0.81%
Class B Shares 1,000.00 1,019.89 4.96 0.99%
Class C Shares 1,000.00 1,019.89 4.96 0.99%
Institutional Money Market Institutional Shares 1,000.00 1,023.60 1.20 0.24%
Select Shares 1,000.00 1,023.21 1.61 0.32%
Preferred Shares 1,000.00 1,022.86 1.96 0.39%
Trust Shares 1,000.00 1,022.36 2.46 0.49%
Institutional Government Money Market Institutional Shares 1,000.00 1,023.65 1.15 0.23%
Select Shares 1,000.00 1,023.26 1.56 0.31%
Preferred Shares 1,000.00 1,022.91 1.91 0.38%
Trust Shares 1,000.00 1,022.51 2.31 0.46%
U.S. Treasury Money Market Institutional Shares 1,000.00 1,023.55 1.25 0.25%
Select Shares 1,000.00 1,023.16 1.66 0.33%
Preferred Shares 1,000.00 1,022.91 1.91 0.38%
Trust Shares 1,000.00 1,022.66 2.16 0.43%
* 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.
41
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44
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
1100 Walnut, Suite 1300
Kansas City, MO 64106
- ---------------------------------------------------------------------------------------
BEYOND THE TRADITIONAL
Advised by:
FTAM
FIFTH THIRD ASSET MANAGEMENT
FTF1867073110 1-800-282-5706 AR-MMF-09
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 23, 2009, the Code of Ethics was amended to (i) add references to
the chief legal officer, (ii) remove reference to the qualified legal committee
and (iii) to make 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.
An "audit committee financial expert" is not an "expert" for any purpose,
including for purposes of Section 11 of the Securities Act of 1933, as a result
of being designated as an "audit committee financial expert." Further, the
designation of a person as an "audit committee financial expert" does not mean
that the person has any greater duties, obligations, or liability than those
imposed on the person without the "audit committee financial expert"
designation. Similarly, the designation of a person as an "audit committee
financial expert" does not affect the duties, obligations, or liability of any
other member of the Audit Committee or Board of Trustees.
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, 2008 and July 31,
2009 were $399,960 and $386,238, respectively.
(b) Audit Related Fees
The registrant was not billed any fees by the principal accountant for the
fiscal year ended July 31, 2008 or July 31, 2009 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, 2008 and July 31, 2009 were $113,755 and $147,498,
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, 2008 and July 31, 2009
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, 2008
and July 31, 2009 for services rendered by the principal accountant to the
registrant were $113,755 and $147,498, respectively.
The aggregate non-audit fees billed for the fiscal year ended July 31, 2008 and
July 31, 2009 for services rendered by the principal accountant to the
investment adviser were $54,173 and $29,708, 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) A Schedule of Investments is included as a part of the reports to
shareholders filed under Item 1 of this Form N-CSR.
(b) Not applicable.
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
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E. Keith Wirtz
President
Date: October 2, 2009
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 2, 2009
/s/ Shannon King
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Shannon King
Treasurer
(Principal Financial and Accounting Officer)
Date: October 2, 2009