N-CSR 1 ftb38663-64.txt FIFTH THIRD FUNDS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-5669 -------- Fifth Third Funds -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 3435 Stelzer Road, Columbus, OH 43219 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 614-470-8000 ------------ Date of fiscal year end: July 31 ------- Date of reporting period: July 31, 2006 ------------- ITEM 1. REPORTS TO STOCKHOLDERS. Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). LOGO: FIFTH THIRD FUNDS MONEY MARKET MUTUAL FUNDS ANNUAL REPORT TO SHAREHOLDERS July 31, 2006 NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-282-5706 or on the Securities and Exchange Commission's website at http://www.sec.gov. Schedules of Portfolio Investments for periods ending April 30 and October 31 are available, without charge, on the Securities and Exchange Commission's website at http://www.sec.gov. Fifth Third Asset Management Inc. serves as Investment Advisor to the Funds and receives a fee for their services. The Fifth Third Funds are distributed by Fifth Third Funds Distributor, Inc. FIFTH THIRD FUNDS, LIKE ALL MUTUAL FUNDS: o ARE NOT FDIC INSURED o HAVE NO BANK GUARANTEE o MAY LOSE VALUE TABLE OF CONTENTS Economic Outlook and Commentary Section ................... 1 Manager Commentary ................... 3 Schedules of Portfolio Investments .......................... 5 Notes to Schedules of Portfolio Investments ................ 23 Statements of Assets and Liabilities ...................... 24 Statements of Operations ............. 26 Statements of Changes in Net Assets ........................ 28 Notes to Financial Statements ........ 32 Financial Highlights ................. 38 Report of Independent Registered Public Accounting Firm ............... 44 Supplemental Information ............. 45 OUR MESSAGE TO YOU -------------------------------------------------------------------------------- LOGO: FIFTH THIRD FUNDS The 12-month period ending July 31, 2006, proved challenging for stock and bond investors alike. Nonetheless, we are pleased of the performance of the Fifth Third Funds. As for the issues faced by the financial markets during the period, two themes-- the relentless pressure of the Federal Reserve Board (the "Fed") to increase short-term interest rates and the surging price of crude oil--overshadowed all else. The Fed took its key fed funds rate from 3.25% at the beginning of the fiscal year to 5.25% by the end. Perhaps more importantly, the central bank's chairmanship turned over from Alan Greenspan to Ben Bernanke. Having guided the Fed quite adeptly since 1987, Mr. Greenspan's legacy seems as though it will be a hard act to follow for Mr. Bernanke. Shortly after the period's end, the Fed paused in its tightening cycle, but as Mr. Bernanke's tendencies remain relatively unknown, many are suspicious that the policymakers may not yet be done. Crude oil moved from $60 a barrel at the beginning of the fiscal year to nearly $75 barrel at its end--an increase of almost 25%. This ruthless rise in the price of black gold had the arguable effect of causing simultaneous inflationary and recessionary fears in the economy. A terrible 2005 hurricane season severely disrupted the U.S. energy infrastructure, although Mother Nature did bail us out with a warmer winter than normal. As for 2006, the first portion of hurricane season was relatively quiet, though it's still early. The combination of an active central bank and rising oil prices applied downward pressure on the returns of virtually all domestic financial markets. Among those posting subdued gains were the major domestic stock indices that many of our stock managers utilize. These broad indices generally recorded advances in the 5% range during the fiscal year. Interestingly, large cap stocks outperformed small cap equities for the first time in five years. In addition, there was a lag in growth stocks, which benefit from healthy expectations for economic and corporate earnings growth rates. The growth stock indices that we utilize underperformed the value indices by more than 9% for large cap stocks and around 4% for small cap stocks. Fixed income investments endured even tougher obstacles than stocks. With an active central bank pushing short-term rates higher--causing prices to move downward in an inverse fashion--few bonds performed well. Adding to the adverse conditions was a flattening of the yield curve, which occurs when short-term rates increase faster than long-term yields. Consider that while the Fed's overnight rate rose 2% during the period, short-term Treasury yields moved higher by about 1% and long-term yields moved higher by about 0.6%. Within this environment, the total returns of the major bond indices that our fund managers use fell within the 2% range. Compared to the year-over-year gain of 4.1% in the Consumer Price Index1, such meager returns signaled a negative real return for bond investors--something none of us like to see. However, if the Fed plans to hold on further moves in the coming quarters, we are still optimistic that bond returns could take a turn for the better over the next 12-months. Further reinforcing our outlook was the significant degree to which the yield curve flattened, which indicates that the bond market is already anticipating Fed rate cuts some time in 2007. More broadly speaking, the fundamentals that drive financial markets over longer periods of time--fiscal policy, monetary policy, economic growth, corporate profit growth, bond yields and inflation--ended the year in an overall mixed fashion. Notable developments include: o The favorable 15% tax treatment for dividends and long-term capital gains was extended to 2010, a very positive development. o The Fed left its fed funds rate at 5.25% at its early August meeting conducted just after the end of our fiscal year. 1 o Gross Domestic Product1 growth averaged 3.5%--consistent with its long-term average--during the 12-month period ended July 31, 2006. o Double-digit gains in quarterly operating profit growth for the S&P 500 Index1 reached 12 consecutive reporting periods in the second quarter of 2006. o In comparison to the start of the fiscal year longer term Treasury yields moved higher but ended the fiscal year below 5%, while corporate bond yields ended the period in a similar spot, relative to Treasuries. o The 4.1% year-over-year increase in consumer prices was cause for concern, but the Fed indicated it believes inflationary pressures will cool in the near term. Despite the challenges of the fiscal year, our fund managers stayed with their disciplines to produce competitive returns for you, our shareholders. We thank you for your continued confidence in the family of Fifth Third Funds. /s/ Keith Wirtz, CFA Keith Wirtz, CFA Chief Investment Officer /s/ John Augustine, CFA John Augustine, CFA Chief Investment Strategist The foregoing information and opinions are for general information only. Fifth Third Asset Management, Inc. does not guarantee the accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering of individual or personalized investment advice. 1Terms and Definitions CONSUMER PRICE INDEX is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. GROSS DOMESTIC PRODUCT is the monetary value of all the goods and services produced by an economy over a specified period. It includes consumption, government purchases, investments, and exports minus imports. THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500 INDEX") is an index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The 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. MANAGEMENT DISCUSSION OF FUND PERFORMANCE MONEY MARKET FUNDS Within the 12-month period ended July 31, 2006, yields on the Fifth Third Money Market Funds steadily increased on an absolute basis. The rise reflected the ability to reinvest in higher yielding securities as the Federal Reserve's Federal Open Market Committee ("FOMC") increased the Federal Funds target rate by 25 basis points (0.25%) at each of its eight meetings during the period, moving the key rate from 3.25% to 5.25%. Throughout the period, a relatively neutral duration strategy also aided the Funds. Consistent with the neutral duration approach, the taxable Money Market Funds continued to utilize traditional money market securities such as U.S. Treasury bills, U.S. government agency discount notes and commercial paper. The Funds also selectively invested in floating rate and fixed coupon extension issues to capture additional yield. The strategy, which was based on the belief that the FOMC would remain "measured" in its approach and continue to raise rates through early 2006, proved effective as the Funds benefited from the frequent reinvestment in better yielding assets and the inherent hedge provided by the floating rate securities. Furthermore, heightened liquidity allowed the Funds to readily cope with volatile cash flows during the period. Near the period's end, Federal Reserve Board Chairman Ben Bernanke testified to Congress that the extent and timing of future target rate adjustments would be dictated by core economic data and inflation indicators, relative to FOMC forecasts. This fueled speculation that the current rate-hike campaign may be nearing completion, which increased overall market volatility. Consequently, the Funds slightly extended duration in anticipation of the eventual completion of the tightening cycle. With a continued emphasis on high quality security selection, the Fifth Third Prime Money Market and the Fifth Third Institutional Money Market Funds maintained a conservative orientation to achieve principal preservation objectives. The municipal money market yield curve was generally flat during the period. At times, however, it inverted and consequently, daily and weekly floating rate securities had higher yields than 1-year notes. Maintaining a high quality orientation, the Fifth Third Michigan Municipal Money Market Fund1 and the Fifth Third Municipal Money Market Fund continued to be managed conservatively during the period. In general, the average maturity was in line or slightly longer than the iMoneyNet peer group, which allowed both Funds to capitalize on rising interest rates. Approximately 70% of each Fund is comprised of weekly and daily floater issues, many of which are supported by letters of credit and other forms of credit enhancements from banks, financial institutions and corporations. The balance of the portfolio is comprised of commercial paper, notes and bonds that have a final maturity within 397 days. The investment mix did not change dramatically over the 12-month period.+ MATURITY COMPOSITION AS OF JULY 31, 2006 -------------------------------------------------------------------------------- WEIGHTED AVERAGE MATURITY+ -------------------------------------------------------------------------------- DAYS DAYS AS OF 1/31/06 AS OF 7/31/06 -------------------------------------------------------------------------------- Fifth Third Prime 36 34 Money Market Fund -------------------------------------------------------------------------------- Fifth Third Institutional 33 42 Money Market Fund -------------------------------------------------------------------------------- Fifth Third Institutional 42 37 Government Money Market Fund -------------------------------------------------------------------------------- Fifth Third Government 42 31 Money Market Fund -------------------------------------------------------------------------------- Fifth Third U. S. Treasury 26 16 Money Market Fund -------------------------------------------------------------------------------- Fifth Third Michigan Municipal 27 27 Money Market Fund -------------------------------------------------------------------------------- Fifth Third Municipal 29 23 Money Market Fund -------------------------------------------------------------------------------- +Portfolio composition is subject to change. Investment Risk Considerations -------------------------------------------------------------------------------- An investment in any of the funds is not insured or guaranteed by the FDIC or any government agency. Although each money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. 1The Fifth Third Michigan Municipal Money Market Fund's income may be subject to certain state and local taxes and, depending on one's tax status, the federal alternative minimum tax. Single state funds may be subject to additional risk, since issuers they invest in are more likely to be subject to the same political and/or economic risks. MANAGEMENT DISCUSSION OF FUND PERFORMANCE MONEY MARKET MATURITY SCHEDULES -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+
Institutional Michigan Prime Institutional Government Government U.S. Treasury Municipal Municipal Money Money Money Money Money Money Money Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund Market Fund ------------------------------------------------------------------------------------------------------------------------------------ Less than 8 days 50.2% 43.5% 50.5% 26.3% 87.5% 86.0% 88.7% ------------------------------------------------------------------------------------------------------------------------------------ 8 to 14 Days 4.8% 2.5% 4.4% 15.6% 0.8% 0.0% 0.0% ------------------------------------------------------------------------------------------------------------------------------------ 15 to 30 Days 19.9% 22.2% 18.1% 41.3% 0.0% 2.1% 1.5% ------------------------------------------------------------------------------------------------------------------------------------ 31 to 180 Days 21.8% 26.6% 23.5% 14.2% 7.1% 6.6% 5.6% ------------------------------------------------------------------------------------------------------------------------------------ 181 to 365 Days 3.3% 5.2% 3.5% 2.6% 4.6% 5.3% 4.2% ------------------------------------------------------------------------------------------------------------------------------------ 366 to 397 Days 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ------------------------------------------------------------------------------------------------------------------------------------
+Portfolio composition is subject to change. PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) ----------------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT (7.6%) Bank of Nova Scotia, 5.34%, 9/29/06 * $ 10,000 $ 10,000 BNP Paribas, 4.93%, 9/5/06 15,000 15,000 Canadian Imperial Bank, 5.02%, 11/27/06 10,000 10,000 Credit Suisse First Boston, 4.81%, 12/5/06 6,000 6,000 Credit Suisse First Boston, 5.10%, 8/30/06 5,000 5,000 Dexia Credit, 5.27%, 11/6/06 * 20,000 19,999 Toronto Dominion Bank, 5.10%, 10/4/06 12,000 11,999 ----------- TOTAL CERTIFICATES OF DEPOSIT 77,998 ----------- COMMERCIAL PAPER (18.2%) American Honda Finance Corp., 5.37%, 9/12/06 ** 10,000 9,938 Bank of America Corp., 5.27%, 9/7/06 ** 10,000 9,947 Barclays U.S. Funding, 5.18%, 8/24/06 ** 10,000 9,967 Barclays U.S. Funding, 5.40%, 9/21/06 ** 5,000 4,962 Barclays U.S. Funding, 5.41%, 9/25/06 ** 10,000 9,918 Barclays U.S. Funding, 5.12%, 8/16/06 ** 15,000 14,968 Bear Stearns &Co., Inc., 5.31%, 8/7/06 ** 15,000 14,987 Bear Stearns &Co., Inc., 5.45%, 10/26/06 ** 5,000 4,936 BNP Paribas, 5.32%, 8/11/06 ** 10,550 10,534 BNP Paribas, 5.45%, 9/29/06 ** 4,890 4,847 General Electric Capital Corp., 5.27%, 12/29/06 ** 12,000 11,745 Merrill Lynch & Co., 5.30%, 8/8/06 ** 20,000 19,980 Metlife Funding, Inc., 5.17%, 8/22/06 ** 10,000 9,970 Nestle Capital Corp., 5.31%, 11/29/06 ** (c) 5,000 4,914 Rabobank U.S. Financial Corp., 5.27%, 9/29/06 ** 11,000 10,907 Scotiabank, Inc., 5.37%, 8/25/06 ** (c) 15,592 15,536 Societe Generale, 5.18%, 8/16/06 ** 6,700 6,686 Societe Generale, 5.17%, 8/22/06 ** 5,600 5,583 Societe Generale, 5.22%, 10/6/06 ** 5,250 5,201 ----------- TOTAL COMMERCIAL PAPER 185,526 ----------- CORPORATE BONDS (29.0%) American Express Credit Corp., 5.50%, 9/12/06 8,823 8,833 Bank of America Corp., 5.25%, 2/1/07 7,000 6,995 Bear Stearns & Co., Inc., 5.31%, 2/15/07 * 10,000 10,009 Bear Stearns & Co., Inc., 5.38%, 8/3/07 * 20,000 20,000 Credit Suisse First Boston, 5.88%, 8/1/06 25,724 25,723 Credit Suisse First Boston, 5.47%, 1/12/07 * 10,000 10,000 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- CORPORATE BONDS, CONTINUED Credit Suisse First Boston, 4.79%, 1/24/07 $ 3,000 $ 2,988 Florida Hurricane Catastrophe, 5.38%, 8/15/07 * 12,000 12,000 Goldman Sachs Group, Inc., 5.39%, 8/1/06 * 20,000 20,000 Goldman Sachs Group, Inc., 5.26%, 5/11/07 * 15,000 15,015 Household Finance Corp., 5.75%, 1/30/07 8,119 8,146 HSBC Finance Corp., 5.32%, 9/6/07 * 10,000 10,000 JP Morgan Chase & Co., 3.13%, 12/11/06 6,500 6,463 Merrill Lynch & Co., 5.60%, 9/18/06 * 7,400 7,402 Merrill Lynch & Co., 5.36%, 2/1/07 3,190 3,197 Merrill Lynch & Co., 5.60%, 7/11/07 * 15,000 15,000 Morgan Stanley, 5.39%, 9/4/07 * 15,000 15,000 National City Bank, 5.36%, 8/14/06 * 15,000 15,000 SunTrust Bank, 5.23%, 5/17/07 * 10,000 10,008 Toyota Motor Credit Corp., Series EMTN, 5.48%, 12/18/06 * 5,000 5,003 U.S. Bank NA, 2.85%, 11/15/06 5,000 4,973 U.S. Bank NA, 5.33%, 9/29/06 * 3,250 3,250 U.S. Bank NA, Series BKNT, 2.87%, 2/1/07 7,300 7,222 Wachovia Bank NA, 4.85%, 7/30/07 3,500 3,473 Wachovia Corp., 4.95%, 11/1/06 22,000 21,994 Wells Fargo & Co., 5.38%, 8/15/07 * 25,000 25,001 Wells Fargo & Co., 6.88%, 8/8/06 3,000 3,001 ----------- TOTAL CORPORATE BONDS 295,696 ----------- DEMAND NOTES (17.7%) Arbor Hospice, Inc., 5.40%, 10/1/26, (LOC: Comerica Bank) * (c) 4,745 4,745 Atlas Industries, Inc., 5.40%, 6/1/10, (LOC: National City Bank) * 3,920 3,920 Beavercreek Enterprises, 5.40%, 3/2/20, (LOC: National City Bank) * 4,115 4,115 Buckeye Corrugated, Inc., 5.40%, 10/1/17, (LOC: Key Bank) * (c) 5,465 5,465 Bybee Foods LLC, 5.40%, 11/1/26 * 1,600 1,600 Capital One Funding Corp., 5.35%, 10/1/14, (LOC: Bank One) * 2,029 2,029 Capital One Funding Corp., 5.35%, 7/2/18, (LOC: Bank One) * (c) 712 712 Capital One Funding Corp., 5.35%, 10/1/21, (LOC: Bank One) * (c) 1,000 1,000 Capital One Funding Corp., 5.35%, 1/4/27, (LOC: Bank One) * 4,534 4,534 Central Michigan Inns, 5.40%, 4/1/30, (LOC: Michigan National Bank) * 2,010 2,010 Continued 5 PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- DEMAND NOTES, CONTINUED CHF-ELON LLC, 5.34%, 6/1/35, (LOC: Regions Financial Corp) * (c) $ 6,500 $ 6,500 Clare at Water Tower, 5.35%, 5/15/38, (LOC: Lasalle Bank) * 12,500 12,500 Cornerstone Funding Corp., 5.46%, 12/1/11, (LOC: SunTrust) * 8,080 8,080 Cornerstone Funding Corp., 5.46%, 9/1/25, (LOC: SunTrust) * 5,690 5,690 Harry W. Albright, Jr., 5.50%, 5/1/21, (LOC: National Australia Bank) * 5,485 5,485 HWP Co., Ltd. Project, 5.40%, 12/3/18, (LOC: National City Bank) * (c) 4,340 4,340 Iowa 80 Group Inc., 5.33%, 6/1/16, (LOC: Wells Fargo) * 4,000 4,000 Jackson 2000, 5.40%, 6/1/49, (LOC: KeyBank) * 8,975 8,975 Jefferson Land Development, 5.45%, 10/1/16, (LOC: National City Bank) * (c) 1,030 1,030 Landmark Medical LLC, 5.39%, 1/1/21, (LOC: Bank One) * 7,680 7,680 Lexington Financial Services, 5.44%, 2/1/26, (LOC: LaSalle Bank) * 8,800 8,800 Mount Carmel East Professional, 5.40%, 1/1/14, (LOC: National City) * (c) 1,580 1,580 Mr. K Enterprises, 5.59%, 9/1/16, (LOC: National Australia Bank) * 6,150 6,150 New Belgium Brewery Co., 5.49%, 7/1/15, (LOC: KeyBank) * 3,195 3,195 Northside Christian Church, 5.39%, 4/1/30, (LOC: Bank One) * 6,720 6,720 PCI Paper Conversions, Inc., 5.40%, 4/1/10, (LOC: KeyBank) * 1,870 1,870 Pittsburgh Technical Institute, 5.40%, 10/1/15, (LOC: National City Bank) * 10,125 10,125 Precision Tool and Die, 5.40%, 3/1/10, (LOC: National City Bank) * 3,983 3,983 Revenue Bond CTF Series Trust, 5.65%, 6/1/24, (LOC: AIG) * (c) 3,790 3,790 Revenue Bond CTF Series Trust Castlegate 3, 5.65%, 6/1/17, (LOC: AIG) * (c) 2,540 2,540 Royal Town Center LLC Project, 5.40%, 10/1/47, (LOC: Comerica Bank) * (c) 5,095 5,095 Saint Andrew United, 5.35%, 7/1/29, (LOC: Wachovia Bank) * 13,335 13,335 SDK Cameron LLC, 5.40%, 10/1/35, (LOC: Comerica Bank) * (c) 3,275 3,275 Second & Main, Ltd., 5.40%, 8/1/11, (LOC: National City Bank) * 1,750 1,750 Secor Realty, Inc., 5.40%, 4/1/20, (LOC: National City Bank) * 8,190 8,190 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- DEMAND NOTES, CONTINUED SGS Tool Co., 5.40%, 12/1/12, (LOC: Bank One) * $ 4,750 $ 4,750 Zeigler Realty LLC, 5.40%, 9/1/26, (LOC: National City Bank) * 1,920 1,920 ----------- TOTAL DEMAND NOTES 181,478 ----------- MUNICIPAL BONDS (16.2%) ALASKA (0.3%) Four Dam Pool Electric Revenue, 5.34%, 7/1/26 * 3,480 3,480 ----------- CALIFORNIA (3.8%) Riverside County, 5.38%, 11/1/20 * 7,000 7,000 Sacramento County, 5.38%, 7/1/22 * 32,430 32,430 ----------- 39,430 ----------- COLORADO (0.2%) Pueblo Housing Authority Purchasing Revenue, 5.49%, 12/1/18 * (c) 1,820 1,820 ----------- GEORGIA (1.0%) Columbus Development Authority, Industrial Revenue, Litho-Krome Project, 5.43%, 8/1/22 * 10,125 10,125 ----------- ILLINOIS (1.4%) Chicago, Series B, 5.39%, 1/1/19 * 13,530 13,530 Kane County School District, Series A, 5.50%, 12/1/06 335 335 ----------- 13,865 ----------- IOWA (0.7%) Dallas County Industrial Development Revenue, Sioux City Brick & Tile, 5.39%, 9/1/21 * 6,980 6,980 ----------- KENTUCKY (1.5%) Bardstown Industrial Revenue, 5.50%, 6/1/24 * 7,950 7,950 Webster County Industrial Revenue, Green River Project, 5.35%, 11/1/24 * 7,700 7,700 ----------- 15,650 ----------- MICHIGAN (2.0%) Commerce Charter Township, Downtown Development, 5.37%, 10/1/34 * 20,000 20,000 ----------- MINNESOTA (1.0%) Minneapolis Taxable Pension, 5.34%, 12/1/13 * 9,830 9,830 ----------- Continued 6 PRIME MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED NEW YORK (1.2%) Housing Development Corp., Multifamily Rental Housing Revenue, 5.30%, 6/1/33 * $ 12,655 $ 12,655 ----------- NORTH CAROLINA (1.5%) Roman Catholic Diocese, Series A, 5.45%, 6/1/18 * 15,225 15,225 ----------- OHIO (0.4%) Cleveland-Cuyahoga County, Port Authority Revenue, CBT Project, 5.40%, 6/1/31 * 4,500 4,500 ----------- PENNSYLVANIA (0.3%) Allegheny County, Industrial Development Authority Revenue, 5.40%, 5/1/15 * 2,680 2,680 ----------- UTAH (0.2%) Housing Corp., Multi Family Revenue, 5.65%, 1/1/22 * 2,061 2,061 ----------- WASHINGTON (0.7%) Housing Finance Community, Multifamily Revenue, Monticello Park Project, 5.36%, 9/1/34 * 3,865 3,865 State Housing Finance Community, Multi Family Revenue, Eaglepointe Apartments-B, 5.65%, 7/1/28 * 1,610 1,610 State Housing Finance Community, Multi Family Revenue,Winterhill Apartments-B, 5.65%, 7/1/28 * 2,175 2,175 ----------- 7,650 ----------- TOTAL MUNICIPAL BONDS 165,951 ----------- U.S. GOVERNMENT AGENCIES (0.5%) FREDDIE MAC (0.5%) 4.85%, 2/27/07 5,000 4,996 ----------- TOTAL U.S. GOVERNMENT AGENCIES 4,996 ----------- Continued SHARES OR PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (10.3%) Deutsche Bank, 5.27%, 8/1/06, (Proceeds at maturity, $45,007, Collateralized by various U.S. Government Agency securities, 0.00%-6.00%, 12/12/06-05/25/11, value $45,901) $ 45,000 $ 45,000 UBS Investment Bank, 5.27%, 8/1/06, (Proceeds at maturity, $60,427, Collateralized by various U.S. Government Agency securities, 5.70%-5.75%, 7/3/25-7/21/25, value $61,628) 60,418 60,418 ----------- TOTAL REPURCHASE AGREEMENTS 105,418 ----------- MONEY MARKETS (0.2%) AIM STIT Liquid Assets Portfolio 1,181,119 1,181 Goldman Sachs Financial Square Prime Obligations Fund 1,169,913 1,170 ----------- TOTAL MONEY MARKETS 2,351 ----------- TOTAL INVESTMENTS (COST $1,019,414) (A) - 99.7% 1,019,414 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 3,043 ----------- NET ASSETS - 100.0% $ 1,022,457 ===========
See notes to schedules of portfolio investments and notes to financial statements. 7 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) ----------------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT (15.1%) Bank of Nova Scotia, 5.34%, 9/29/06* $ 20,000 $ 19,998 Barclays Capital, 4.74%, 1/19/07 10,000 9,986 Barclays Capital, 5.34%, 1/29/07 * 17,500 17,499 Bear Stearns & Co., Inc., 5.36%, 9/19/06 * 20,000 20,000 BNP Paribas, 4.24%, 8/25/06 6,050 6,047 BNP Paribas, 4.93%, 9/5/06 10,000 10,000 Canadian Imperial Bank, 5.02%, 11/27/06 15,000 15,000 Credit Suisse First Boston, 5.10%, 8/30/06 12,000 12,000 Deutsche Bank, 4.11%, 8/25/06 15,000 14,990 Dexia Credit, 5.27%, 11/6/06 * 15,000 15,000 Marshall & Ilsley, 5.44%, 10/25/06 15,000 15,000 Natexis Banques Populaires, 4.75%, 10/26/06 18,000 17,986 National City Bank, 5.34%, 5/11/07 * 5,000 5,001 Royal Bank of Scotland, 5.34%, 12/27/06 * 11,000 10,999 Royal Bank of Scotland, 5.34%, * 2/23/07 10,000 9,999 SunTrust Bank, 5.35%, 8/22/06 * 15,000 15,000 Toronto Dominion Bank, 5.10%, 10/4/06 12,000 12,000 Wachovia Bank NA, 5.46%, 3/30/07 * 8,800 8,800 ----------- TOTAL CERTIFICATES OF DEPOSIT 235,305 ----------- COMMERCIAL PAPER (22.9%) Abbey National, 5.17%, 8/7/06 ** 15,000 14,987 American Honda Finance Corp., 5.37%, 9/12/06 ** 15,000 14,907 Bank of America Corp., 5.27%, 9/7/06 ** 11,000 10,941 Barclays U.S. Funding, 5.18%, 8/24/06 ** 5,000 4,984 Barclays U.S. Funding, 5.40%, 9/21/06 ** 10,000 9,925 Barclays U.S. Funding, 5.41%, 9/25/06 ** 15,000 14,877 Bear Stearns & Co., Inc., 5.31%, 8/7/06 ** 15,000 14,987 Bear Stearns & Co., Inc., 5.45%, 10/26/06 ** 10,000 9,871 BNP Paribas, 5.18%, 8/17/06 ** 21,450 21,401 BNP Paribas, 5.45%, 9/29/06 ** 14,000 13,877 California State University, 5.48%, 10/3/06 312 312 California State University, 5.48%, 10/3/06 7,754 7,754 Defpa Bank PLC, 5.46%, 10/13/06 ** (c) 5,000 4,945 General Electric Capital Corp., 5.27%, 12/29/06 ** 10,000 9,788 Merrill Lynch & Co., 5.29%, 8/8/06 ** 20,000 19,979 Metlife Funding, Inc., 5.17%, 8/22/06 ** 5,000 4,985 National City Bank, 5.29%, 8/4/06 ** 15,000 14,993 National Rural Utilities CO-OP, 5.33%, 8/10/06 ** 10,500 10,486 Nestle Capital Corp., 5.31%, 11/29/06 ** (c) 10,000 9,827 Purdue University Research, 5.32%, 11/1/06 6,150 6,150 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- COMMERCIAL PAPER, CONTINUED Rabobank U.S. Financial Corp., 5.27%, 9/29/06 ** $ 11,000 $ 10,907 Salvation Army, 5.55%, 9/26/06 3,000 3,000 San Jose California International Airport, 5.30%, 8/3/06 ** 8,124 8,122 Scotiabank, Inc., 5.37%, 8/25/06 ** (c) 25,000 24,911 Societe Generale, 5.30%, 8/1/06 ** 30,000 30,000 Societe Generale, 5.13%, 8/8/06 ** 5,900 5,894 Societe Generale, 5.22%, 10/6/06 ** 14,000 13,867 Toyota Motor Credit Corp., 5.27%, 11/6/06 * 15,000 15,000 UBS Finance, Inc., 5.21%, 8/21/06 ** 4,900 4,886 UBS Finance, Inc., 5.35%, 8/24/06 ** 15,000 14,949 University Of Michigan, 5.32%, 8/2/06 4,660 4,660 ----------- TOTAL COMMERCIAL PAPER 356,172 ----------- CORPORATE BONDS (26.7%) Abbott Laboratories, 6.40%, 12/1/06 1,000 1,005 American Express Credit Corp., 5.50%, 9/12/06 7,000 7,008 Bank of America Corp., 7.13%, 9/15/06 8,503 8,529 Bank of America Corp., 5.25%, 2/1/07 6,700 6,685 Bear Stearns & Co., Inc., 5.31%, 2/15/07 * 15,000 15,014 Bear Stearns & Co., Inc., 5.38%, 8/3/07 * 15,000 15,000 Citigroup, Inc., 5.50%, 8/9/06 2,000 2,000 Citigroup, Inc., 5.33%, 6/4/07 * 5,000 5,004 Credit Suisse First Boston, 5.88%, 8/1/06 28,500 28,501 Credit Suisse First Boston, 5.47%, 1/12/07 * 15,000 14,999 Fleetboston Financial Corp., 4.88%, 12/1/06 4,918 4,913 Florida Hurricane Catastrophe, 5.38%, 8/15/07 * 15,000 15,000 General Electric Capital Corp., 5.00%, 2/15/07 5,000 4,981 Goldman Sachs Group, Inc., 5.39%, 8/1/06 * 20,000 20,001 Goldman Sachs Group, Inc., 5.66%, 10/27/06 * 11,050 11,055 Goldman Sachs Group, Inc., 5.26%, 5/11/07 * 6,000 6,006 Healthcare Network Property, 5.35%, 1/1/29 * 16,300 16,300 Household Finance Corp., 5.75%, 1/30/07 19,896 19,963 HSBC Finance Corp., 6.88%, 3/1/07 5,000 5,045 HSBC Finance Corp., 5.32%, 8/6/07 15,000 15,000 Continued 8 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- CORPORATE BONDS, CONTINUED IBM Corp., 5.49%, 6/28/07 * $ 25,000 $ 25,009 JP Morgan Chase & Co., 5.25%, 5/30/07 3,285 3,274 Lehman Brothers Holdings, 7.50%, 9/1/06 11,110 11,135 Merrill Lynch & Co., 5.60%, 9/18/06 * 7,400 7,402 Merrill Lynch & Co., 4.18%, 1/26/07 9,000 8,969 Merrill Lynch & Co., 5.36%, 2/1/07 3,270 3,274 Merrill Lynch & Co., 5.41%, 6/15/07 * 20,000 20,013 National City Bank Michigan/Illinois, 5.29%, 9/1/06 * 12,000 12,000 National City Bank Of Indiana, 4.88%, 7/20/07 4,920 4,889 Northern Trust Corp., 2.88%, 12/15/06 2,610 2,587 Procter & Gamble Co., 4.75%, 6/15/07 5,000 4,970 SunTrust Bank, 2.50%, 11/1/06 4,365 4,334 SunTrust Bank, 5.23%, 5/17/07 * 2,155 2,156 U.S. Bank, 2.85%, 11/15/06 4,465 4,441 Wachovia Bank NA, 4.85%, 7/30/07 5,000 4,961 Wachovia Corp., 4.95%, 11/1/06 13,897 13,900 Wachovia Corp., 6.63%, 11/15/06 2,500 2,510 Wachovia Corp., 5.28%, 12/4/06 * 5,000 5,000 Wells Fargo & Co., 5.42%, 9/15/06 * 4,000 4,001 Wells Fargo & Co., 5.13%, 2/15/07 13,335 13,320 Wells Fargo & Co., 5.51%, 3/23/07 * 25,000 25,016 Wells Fargo & Co., 5.38%, 8/15/07 * 10,000 10,000 ----------- TOTAL CORPORATE BONDS 415,170 ----------- DEMAND NOTES (4.3%) Capital One Funding, 5.35%, 8/2/21, (LOC: Bank One) * 4,338 4,338 Capital One Funding, 5.35%, 4/1/26, (LOC: Bank One) * 7,451 7,451 CHF-ELON LLC, 5.34%, 6/1/35, (LOC: Regions Financial Corp) * (c) 7,000 7,000 Cornerstone Funding Corp., 5.39%, 11/15/06, (LOC: SunTrust) * 4,381 4,381 Cornerstone Funding Corp., 5.46%, 1/1/34, (LOC: SunTrust) * 4,156 4,156 Gulf Gate Apartments, 5.39%, 9/1/28, (LOC: Wells Fargo) * (c) 2,000 2,000 J&S Properties, Inc., 5.40%, 3/1/26 * 3,500 3,500 Metaltec Steel Abrasive, 5.37%, 11/1/34, (LOC: Comerica Bank) * 4,505 4,505 Northport Baptist Church, 5.45%, 9/1/24, (LOC: Regions Financial Corp.) * 3,100 3,100 Park State Properties LLC, 5.40%, 11/1/34, (LOC: US Bank) * 5,500 5,500 Praise Tabernacle Outreach, 5.45%, 6/1/24, (LOC: Comerica Bank) * 3,615 3,615 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- DEMAND NOTES, CONTINUED Presentation School, Inc., 5.35%, 7/1/30, (LOC: FHLB) * $ 5,700 $ 5,700 Sioux City Brick & Tile, 5.35%, 12/1/36 * (c) 12,250 12,250 ----------- TOTAL DEMAND NOTES 67,496 ----------- MUNICIPAL BONDS (18.7%) ARKANSAS (2.0%) Mississippi County Industrial Development Revenue, 5.40%, 5/1/36 * (c) 14,000 14,000 Northwest Regional Airport Authority, Airport Revenue, Series A, 5.40%, 2/1/21 * 15,725 15,725 Northwest Regional Airport Authority, Airport Revenue, Series B, 5.40%, 2/1/08 * 1,235 1,235 ----------- 30,960 ----------- CALIFORNIA (1.6%) Kern Water Authority Revenue, Series B, 5.39%, 7/1/28 * 4,600 4,600 Sacramento County, 5.38%, 7/1/22 * 5,000 5,000 Sacramento County Housing Authority, Multifamily Revenue, Natomas Park Apartments, Series B, 5.37%, 7/15/35 * 1,950 1,950 Saint Michael's Episcopal Day School, 5.44%, 7/1/28 * 1,990 1,990 San Jose Financing Authority Lease Revenue, Hayes Mansion, Phase B, 5.38%, 7/1/24 * 8,000 8,000 Statewide Community Development Authority, Multifamily Revenue, Palms Apartments, 5.35%, 5/15/35 * 2,745 2,745 Statewide Community Development Authority, Multifamily Revenue, Series X-T, 5.37%, 10/15/32 * 1,300 1,300 ----------- 25,585 ----------- FLORIDA (0.4%) Housing Finance Corp., Mulitfamily Revenue, 5.36%, 5/15/36 * 7,000 7,000 ----------- GEORGIA (1.6%) Athens-Clarke County Industrial Development Authority Revenue, Leucadia Inc., Project, 5.39%, 7/1/07 * (c) 3,550 3,550 Augusta Housing Authority Multifamily Revenue, 5.42%, 5/15/33 * 500 500 Gwinnett County Development Authority, Hopewell Christian Academy, 5.37%, 12/1/21 * 6,100 6,100 Municipal Gas Authority Revenue, 5.43%, 2/1/15 * 15,175 15,175 ----------- 25,325 ----------- 9 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED ILLINOIS (1.6%) Financial Authority Revenue, Fairview Obligation, Series D, 5.35%, 8/15/34 * $ 1,150 $ 1,150 Financial Authority Revenue, Fariview Obligation, Series C, 5.35%, 8/15/34 * 12,350 12,350 Financial Authority Revenue, Franciscan Community, Series B, 5.35%, 5/1/36 * 12,000 12,000 ----------- 25,500 ----------- INDIANA (1.9%) Health Facilities Financing Authority Revenue, 5.35%, 4/1/24 * 4,470 4,470 Health Facilities Financing Authority, Hospital Revenue, Community Foundation of Northwest Indiana, Series B, 5.35%, 8/1/25 * 23,875 23,875 Indianapolis Economic Development Multifamily Housing Revenue, Series B, 5.45%, 11/1/36 * 985 985 ----------- 29,330 ----------- IOWA (0.3%) Finance Authority Retirement Community Revenue, 5.35%, 12/1/20 * 5,315 5,315 ----------- KENTUCKY (0.3%) Boone County Industrial Revenue, 5.49%, 6/1/23 * 5,230 5,230 ----------- MARYLAND (1.3%) State Health & Higher Educational Facilities Revenue, Series B, 5.35%, 1/1/28 * 19,900 19,900 ----------- MICHIGAN (2.9%) Canton Charter Township, General Obligation, 5.49%, 3/1/11 * 1,500 1,500 Commerce Charter Township, Downtown Development, 5.37%, 10/1/18 * 13,000 13,000 Commerce Charter Township, Downtown Development, 5.37%, 10/1/34 * 15,000 15,000 Kent County, 5.40%, 3/1/08 * 12,000 12,000 Ypsilanti Charter Township, Taxable Capital Improvements, Series B, 5.49%, 4/1/19 * 3,340 3,340 ----------- 44,840 ----------- MINNESOTA (0.3%) Plymouth Revenue, Carlson Center Project, 5.39%, 4/1/12 * 1,100 1,100 St. Paul Port Authority District, 5.46%, 3/1/22 * 3,580 3,580 ----------- 4,680 ----------- Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MISSOURI (0.6%) Kansas City Industrial Development Authority, Taxable Downtown Arena, 5.43%, 4/1/40 * $ 8,925 $ 8,925 ----------- NEBRASKA (0.8%) Omaha Special Obligation, Riverfront Redevelopment, 5.50%, 2/1/26 * 11,765 11,765 ----------- NEW MEXICO (0.2%) Albuquerque Industrial Revenue, KTECH Corp. Project, 5.39%, 11/1/22 * 3,785 3,785 ----------- NEW YORK (1.0%) Housing Development Corp., Multifamily Rental Housing Revenue, 5.30%, 6/1/33 * 14,900 14,900 ----------- NORTH CAROLINA (0.5%) Roman Catholic Diocese, Series A, 5.45%, 6/1/18 * 8,140 8,140 ----------- OHIO (0.2%) Cuyahoga County Ohio Health Care Revenue, 5.45%, 5/15/12 * 3,125 3,125 ----------- PENNSYLVANIA (0.3%) Berks County Industrial Development Authority Revenue, 5.40%, 7/1/16 * (c) 1,500 1,500 Berks County Municipal Authority, 5.45%, 5/15/22 * 2,885 2,885 ----------- 4,385 ----------- TEXAS (0.1%) Alamo Heights Higher Education Facilities Corp., 5.50%, 4/1/07 * 840 840 ----------- UTAH (0.2%) Tooele City Industrial Development Revenue, Series A, 5.39%, 10/1/22 * 2,800 2,800 ----------- VIRGINIA (0.3%) Arlington County Industrial Development Authority, 5.33%, 2/1/16 * 5,000 5,000 ----------- WASHINGTON (0.3%) Housing Finance Community Multifamily Housing Revenue, Everett, Series B, 5.36%, 1/15/38 * 2,000 2,000 Housing Finance Community Multifamily Housing Revenue, Granite Falls, Series B, 5.37%, 10/1/27 * 1,190 1,190 Continued 10 INSTITUTIONAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED WASHINGTON, CONTINUED Housing Finance Community Multifamily Housing Revenue, Summer Ridge, Series B, 5.46%, 12/1/29 * $ 780 $ 780 ----------- 3,970 ----------- TOTAL MUNICIPAL BONDS 291,300 ----------- U.S. GOVERNMENT AGENCIES (1.1%) FREDDIE MAC (1.1%) 4.85%, 2/27/07 10,000 9,992 5.40%, 1/15/42 * 7,793 7,793 ----------- 17,785 ----------- TOTAL U.S. GOVERNMENT AGENCIES 17,785 ----------- REPURCHASE AGREEMENTS (10.9%) Deutsche Bank, 5.27%, 8/1/06, (Proceeds at maturity, $110,016, Collateralized by various U.S. Government Agency securities, 4.75%-6.00%, 1/18/11-4/25/16, value $112,201) 110,000 110,000 UBS Investment Bank, 5.27%, 8/1/06, (Proceeds at maturity, $60,398, Collateralized by various U.S. Government Agency securities, 0.00%-6.125%, 2/22/07-10/27/25, value $61,600) 60,389 60,389 ----------- TOTAL REPURCHASE AGREEMENTS 170,389 ----------- Continued SHARES VALUE ---------------------------------------------------------------------------------------- MONEY MARKETS (0.3%) AIM STIT Liquid Assets Portfolio 2,561,192 $ 2,561 Goldman Sachs Financial Square Prime Obligations Fund 1,664,799 1,665 ----------- TOTAL MONEY MARKETS 4,226 ----------- TOTAL INVESTMENTS (COST $1,557,843) (A) - 100.0% 1,557,843 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% 390 ----------- NET ASSETS - 100.0% $ 1,558,233 ===========
See notes to schedules of portfolio investments and notes to financial statements. 11 INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) ----------------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- GOVERNMENT BONDS (1.2%) Overseas Private Invest, 5.35%, 12/31/10 * $ 2,000 $ 2,000 Overseas Private Invest, 5.35%, 5/15/21 * 5,000 5,000 ----------- TOTAL GOVERNMENT BONDS 7,000 ----------- U.S. GOVERNMENT AGENCIES (67.1%) FANNIE MAE (16.1%) 4.00%, 8/8/06 5,000 4,999 2.75%, 8/11/06 11,500 11,493 5.22%, 9/7/06 * 22,100 22,100 5.46%, 9/20/06 ** 5,858 5,816 5.30%, 9/21/06 * 13,325 13,325 5.48%, 9/27/06 ** 2,335 2,316 2.81%, 9/28/06 2,000 1,992 2.13%, 9/29/06 1,000 995 5.41%, 10/4/06 ** 5,000 4,954 4.00%, 10/16/06 500 499 2.63%, 11/15/06 5,000 4,958 3.00%, 12/15/06 6,000 5,952 3.55%, 1/12/07 4,000 3,968 2.63%, 1/19/07 5,000 4,940 2.71%, 1/30/07 5,000 4,935 3.00%, 2/26/07 2,550 2,514 3.00%, 3/2/07 500 493 ----------- 96,249 ----------- FEDERAL FARM CREDIT BANK (8.4%) 5.24%, 8/1/06 * 15,000 15,000 2.25%, 9/1/06 1,100 1,097 3.20%, 10/12/06 2,000 1,994 5.27%, 12/22/06 * 10,000 10,000 5.27%, 1/3/07 * 11,075 11,077 1.88%, 1/16/07 811 799 5.33%, 3/29/07 * 10,000 10,003 ----------- 49,970 ----------- FEDERAL HOME LOAN BANK (26.9%) 5.18%, 8/4/06 ** 10,200 10,196 5.21%, 8/9/06 ** 10,000 9,989 3.50%, 8/15/06 9,375 9,371 5.25%, 8/15/06 2,000 2,000 5.26%, 8/18/06 ** 4,300 4,289 5.28%, 8/21/06 * 30,000 30,001 2.88%, 9/15/06 5,000 4,986 3.75%, 9/29/06 2,500 2,494 2.38%, 10/2/06 2,300 2,291 2.63%, 10/16/06 5,800 5,767 5.20%, 11/9/06 * 15,000 14,998 5.48%, 11/10/06 ** 8,157 8,034 2.75%, 11/15/06 6,000 5,964 4.88%, 11/15/06 5,505 5,498 3.75%, 11/30/06 2,200 2,187 2.60%, 12/12/06 1,000 991 2.75%, 12/15/06 3,000 2,975 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES, CONTINUED FEDERAL HOME LOAN BANK, CONTINUED 3.80%, 12/22/06 $ 2,810 $ 2,797 3.50%, 1/18/07 3,300 3,270 4.00%, 1/23/07 2,500 2,483 3.38%, 2/23/07 800 792 2.45%, 3/23/07 2,200 2,158 5.26%, 5/10/07 * 10,000 9,999 3.50%, 5/15/07 2,100 2,072 5.28%, 6/14/07 * 15,000 15,000 ----------- 160,602 ----------- FEDERAL HOME LOAN MORTGAGE CORPORATION (5.5%) 4.99%, 8/1/06 ** 5,000 5,000 5.27%, 8/22/06 ** 4,500 4,486 5.10%, 9/20/06 ** 5,000 4,965 5.10%, 10/17/06 ** 5,000 4,947 5.36%, 10/31/06 ** 3,500 3,454 5.18%, 11/21/06 ** 5,000 4,921 5.28%, 12/1/06 ** 2,350 2,309 2.38%, 2/15/07 2,563 2,523 ----------- 32,605 ----------- FREDDIE MAC (10.2%) 2.75%, 8/15/06 4,630 4,626 3.75%, 11/15/06 4,000 3,985 2.50%, 11/28/06 2,250 2,234 2.88%, 12/15/06 10,460 10,372 2.85%, 2/23/07 1,706 1,684 4.88%, 3/15/07 4,000 3,983 5.40%, 1/15/42 * 24,352 24,352 5.40%, 10/15/45 * 9,928 9,928 ----------- 61,164 ----------- TOTAL U.S. GOVERNMENT AGENCIES 400,590 ----------- REPURCHASE AGREEMENTS (31.5%) Deutsche Bank, 5.27%, 8/1/06, (Proceeds at maturity, $90,013, Collateralized by various U.S. Government Agency securities, 0.00%-5.50%, 8/15/06-8/15/09, value $91,801) 90,000 90,000 UBS Investment Bank, 5.27%, 8/1/06, (Proceeds at maturity, $98,326, Collateralized by various U.S. Government Agency securities, 0.00%-7.10%, 8/30/06-4/28/26, value $100,280) 98,312 98,312 ----------- TOTAL REPURCHASE AGREEMENTS 188,312 ----------- Continued 12 INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ---------------------------------------------------------------------------------------- SHARES VALUE ---------------------------------------------------------------------------------------- MONEY MARKETS (0.2%) AIM STIT Government Agency Money Market Fund 1,123,147 $ 1,123 Goldman Sachs Financial Square Government Fund 4,125 4 ----------- TOTAL MONEY MARKETS 1,127 ----------- TOTAL INVESTMENTS (COST $597,029) (A) - 100.0% 597,029 LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (97) ----------- NET ASSETS - 100.0% $ 596,932 ===========
See notes to schedules of portfolio investments and notes to financial statements. 13 GOVERNMENT MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ----------------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES (97.4%) FEDERAL FARM CREDIT BANK (17.6%) 5.24%, 8/1/06 * $ 10,000 $ 10,000 5.17%, 8/11/06 ** 6,670 6,660 4.82%, 8/31/06 ** 2,500 2,490 3.02%, 11/24/06 1,000 993 5.40%, 12/15/06 ** 1,475 1,446 5.27%, 12/22/06 * 5,000 5,000 5.27%, 1/3/07 * 7,150 7,152 3.27%, 1/12/07 1,000 993 4.60%, 1/23/07 500 500 ----------- 35,234 ----------- FEDERAL HOME LOAN BANK (79.8%) 5.10%, 8/2/06 ** 10,485 10,484 5.18%, 8/4/06 ** 10,000 9,996 5.19%, 8/7/06 ** 2,148 2,146 5.17%, 8/9/06 ** 14,600 14,583 3.25%, 8/11/06 2,205 2,204 5.19%, 8/11/06 ** 7,838 7,827 3.50%, 8/15/06 7,265 7,261 5.25%, 8/15/06 3,245 3,246 6.38%, 8/15/06 2,265 2,266 5.19%, 8/16/06 ** 13,170 13,142 3.38%, 8/18/06 700 700 5.20%, 8/18/06 ** 10,000 9,976 5.28%, 8/21/06 * 15,000 15,000 5.23%, 8/23/06 ** 15,050 15,002 5.29%, 8/25/06 ** 4,047 4,033 2.95%, 9/14/06 3,545 3,536 2.88%, 9/15/06 1,645 1,640 3.13%, 9/15/06 800 798 3.13%, 9/15/06 1,400 1,397 2.10%, 10/13/06 250 248 2.63%, 10/16/06 905 899 5.20%, 11/9/06 * 5,000 4,999 2.75%, 11/15/06 2,445 2,429 3.00%, 11/15/06 1,000 995 3.13%, 11/15/06 1,410 1,402 4.13%, 11/15/06 1,685 1,678 4.88%, 11/15/06 400 400 4.10%, 11/17/06 300 299 3.20%, 11/29/06 1,000 995 2.75%, 12/15/06 1,350 1,339 3.80%, 1/16/07 500 496 4.63%, 1/17/07 1,440 1,435 3.50%, 1/18/07 510 506 4.00%, 1/23/07 1,500 1,490 2.88%, 2/15/07 300 296 4.88%, 2/15/07 1,455 1,449 3.75%, 3/7/07 1,000 990 4.25%, 4/16/07 2,500 2,478 5.28%, 6/14/07 * 10,000 10,000 ----------- 160,060 ----------- TOTAL U.S. GOVERNMENT AGENCIES 195,294 ----------- Continued SHARES VALUE ---------------------------------------------------------------------------------------- MONEY MARKETS (2.5%) AIM STIT Government Tax Advantage Fund 7,476 $ 7 Goldman Sachs Financial Square Federal Fund 4,973,585 4,974 ----------- TOTAL MONEY MARKETS 4,981 ----------- TOTAL INVESTMENTS (COST $200,275) (A) - 99.9% 200,275 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 158 ----------- NET ASSETS - 100.0% $ 200,433 =========== See notes to schedules of portfolio investments and notes to financial statements. 14 U.S. TREASURY MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ---------------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- TREASURY BILLS (5.0%) 4.54%, 8/3/06 ** $ 10,000 $ 9,998 4.60%, 8/10/06 ** 10,000 9,989 4.73%, 9/14/06 ** 20,000 19,887 4.80%, 9/21/06 ** 10,000 9,933 5.17%, 12/21/06 ** 10,000 9,801 ----------- TOTAL TREASURY BILLS 59,608 ----------- TREASURY NOTES (8.4%) 2.63%, 11/15/06 25,000 24,823 3.50%, 11/15/06 10,000 9,968 2.88%, 11/30/06 10,000 9,933 3.13%, 1/31/07 35,000 34,641 6.25%, 2/15/07 20,000 20,124 ----------- TOTAL TREASURY NOTES 99,489 ----------- REPURCHASE AGREEMENTS (B) (86.7%) ABN AMRO, 5.24%, 8/1/06 250,000 250,000 Bank of America, 5.24%, 8/1/06 75,000 75,000 Deutsche Bank, 5.24%, 8/1/06 265,000 265,000 Nesbitt Burns, 5.23%, 8/1/06 200,000 200,000 UBS Investment Bank, 5.24%, 8/1/06 238,750 238,750 ----------- TOTAL REPURCHASE AGREEMENTS 1,028,750 ----------- MONEY MARKETS (0.2%) AIM STIT Money Market Fund 1,437,358 1,437 Goldman Sachs Financial Square Treasury Obligation 1,224,064 1,224 ----------- TOTAL MONEY MARKETS 2,661 ----------- TOTAL INVESTMENTS (COST $1,190,508) (A) - 100.3% 1,190,508 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (3,439) ----------- NET ASSETS - 100.0% $ 1,187,069 ===========
See notes to schedules of portfolio investments and notes to financial statements. MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) ----------------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- COMMERCIAL PAPER (2.6%) MICHIGAN (2.6%) State Building Authority, 3.50%, 8/3/06 $ 5,000 $ 5,000 ----------- TOTAL COMMERCIAL PAPER 5,000 ----------- MUNICIPAL BONDS (96.9%) ALASKA (0.4%) Valdez Marine Terminal Revenue, Exxon Pipeline Co., Project A, 3.57%, 12/1/33 * 700 700 ----------- MICHIGAN (94.0%) Ann Arbor Economic Development Corp., Limited Obligation Revenue, Glacier Hills, Inc. Project, 3.64%, 11/1/25* 2,250 2,250 Building Authority, 3.65%, 10/15/40 * (c) 13,500 13,500 Building Authority Revenue, Series III, 3.00%, 10/15/06 2,500 2,500 Detroit Sewage Disposal Revenue, 3.68%, 7/1/33 * 100 100 Detroit Waterfront Reclamation, Series C, 3.68%, 5/1/09 * 4,400 4,400 Dexter Community School District, GO, 6.25%, 5/1/07 1,730 1,762 Farmington Hills Economic Development Corp., Marketing Displays, (AMT), 3.75%, 9/1/08 * 470 470 Ferndale School District, GO, 5.50%, 5/1/22 200 203 Genesee County Economic Development Corp., Rawcar Group, (AMT), 3.77%, 5/1/20 * 2,005 2,005 Holland School District, GO, 4.00%, 5/1/07 150 150 Hospital Finance Authority Revenue, Balmoral, Inc., 3.25%, 9/1/16 * (c) 550 550 Housing Development Authority, Hunt Club Apartments, 3.68%, 7/15/35 * 475 475 Housing Development Authority, Limited Obligation Revenue, Shoal Creek, 3.65%, 10/1/07 * 5,080 5,080 Housing Development Authority, Ltd., 3.71%, 6/1/25 * 5,050 5,050 Housing Development Authority, Ltd., 3.70%, 1/1/29 * (c) 3,800 3,800 Housing Development Authority, Ltd., Series A, 3.70%, 9/1/35 * 6,900 6,900 Jackson County Hospital Financial Authority, Hospital Revenue, W.A. Foote Memorial Hospital-B, 3.66%, 6/1/26 * 2,950 2,950 Continued 15 MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Livonia Economic Development Corp., 3.65%, 8/1/15 * (c) $ 500 $ 500 Livonia Water Supply & Wastewater Systems, 2.50%, 11/1/06 200 200 Mancelona Area Water Sewer Authority, Water Supply Systems Revenue, 3.72%, 4/1/21 * 940 940 Marquette City Hospital Finance, Marquette General Hospital Group, 3.71%, 7/1/09 * 1,755 1,755 Marquette County Economic Development Corp., Pioneer Labs, Inc., Series A, (AMT), 3.81%, 6/1/12 * 725 725 Municipal Bond Authority Revenue, Series A, 4.50%, 8/18/06 2,000 2,000 Municipal Bond Authority Revenue, Series B-1, 4.00%, 8/18/06 1,000 1,001 Municipal Bond Authority Revenue, Series C, 4.25%, 8/18/06 1,000 1,001 Muskegon County Wastewater Management System No. 1, (AMT), 5.00%, 7/1/07 1,000 1,012 Oakland County Economic Development Corp., Limited Obligation Revenue, Moody Family, Ltd., (AMT), 3.85%, 9/1/12 * (c) 1,835 1,835 Oakland County Economic Development Corp., North America, (AMT), 3.80%, 7/1/18 * (c) 1,240 1,240 Public Power Agency Revenue, Series A, 5.00%, 1/1/07 2,000 2,013 Romeo Community School District Building & Site, GO, 5.00%, 5/1/07 125 126 Saginaw School District Building & Site, GO, 4.00%, 5/1/07 1,210 1,214 Southfield Economic Development, Lawrence Technical University Project, 3.72%, 10/1/31 * 2,850 2,850 St. Clair Shores Economic Development Corp., Borman's, Inc., (AMT), 4.10%, 10/15/06 * 180 180 State Building Authority Revenue, 3.65%, 10/15/16 * 3,900 3,900 State Comprehensive Transportation, Series B, 5.00%, 5/15/07 400 404 State Environmental Protection Program, GO, 5.50%, 11/1/06 385 387 State Hospital Finance Authority Revenue, Henry Ford Health Center, 3.63%, 11/15/40 * 3,000 3,000 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED State Hospital Financial Authority Revenue, Holland Community Hospital, Series B, 3.66%, 1/1/34 * $ 1,400 $ 1,400 State, Series A, GO, 4.50%, 9/29/06 3,000 3,006 Strategic Fund Limited Obligation Revenue, 3.66%, 5/1/32 * 5,000 5,001 Strategic Fund, Automatic Spring, (AMT), 3.81%, 9/1/10 * 1,000 1,000 Strategic Fund, Banks Hardwoods, Inc., (AMT), 3.78%, 7/1/12 * (c) 692 692 Strategic Fund, Biewer of Lansing, (AMT), 3.78%, 5/1/19 * (c) 885 885 Strategic Fund, Brazing Concepts Co., (AMT), 3.88%, 9/1/18 * (c) 1,500 1,500 Strategic Fund, Donnelly Corp., Series A, (AMT), 3.79%, 3/1/10 * (c) 4,500 4,500 Strategic Fund, Donnelly Corp., Series B, (AMT), 3.70%, 4/1/08 * (c) 2,500 2,500 Strategic Fund, Emerson Schools, 3.71%, 7/1/24 * (c) 2,555 2,555 Strategic Fund, Environmental Powder Co., (AMT), 3.80%, 7/1/22 * 120 120 Strategic Fund, Fitz-Land LLC, (AMT), 3.77%, 8/1/25 * 2,365 2,365 Strategic Fund, Fleet Engineers Project, (AMT), 3.80%, 9/1/09 * 400 400 Strategic Fund, Forest City Technologies, (AMT), 3.77%, 9/1/15 * 1,400 1,400 Strategic Fund, Frederick Wolfgang, (AMT), 3.80%, 9/1/26 * 820 820 Strategic Fund, Glastender, Inc., (AMT), 3.88%, 9/1/08 * (c) 715 715 Strategic Fund, John Dekker & Sons, (AMT), 3.80%, 1/1/18 * 355 355 Strategic Fund, Joy Properties LLC, 3.85%, 5/1/17 * (c) 580 580 Strategic Fund, Kaspari Investments LLC, (AMT), 3.88%, 6/1/09 * (c) 100 100 Strategic Fund, Kazoo, Inc., (AMT), 3.65%, 3/15/07 * 95 95 Strategic Fund, Kundinger, (AMT), 3.80%, 2/1/29 * (c) 1,130 1,130 Strategic Fund, Limited Obligation Revenue, All American Property LLC, (AMT), 4.03%, 12/1/18 * 800 800 Strategic Fund, Limited Obligation Revenue, Aspen Reality LLC. Project, (AMT), 4.03%, 7/1/13 * (c) 100 100 Strategic Fund, Limited Obligation Revenue, Besser International Sales Co. Project, (AMT), 3.88%, 9/1/11 * (c) 300 300 Continued 16 MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Limited Obligation Revenue, BK Real Estate Project, (AMT), 3.77%, 12/1/23 * $ 1,990 $ 1,990 Strategic Fund, Limited Obligation Revenue, Bowers Manufacturing Co. (AMT), 3.88%, 9/1/10 * (c) 500 500 Strategic Fund, Limited Obligation Revenue, Cayman Chemical Company Project, (AMT), 3.77%, 6/1/28 * (c) 830 830 Strategic Fund, Limited Obligation Revenue, Creative Foam Corp. (AMT), 3.88%, 11/1/11 * (c) 2,400 2,400 Strategic Fund, Limited Obligation Revenue, CTD Real Estate Co. (AMT), 4.03%, 11/1/12 * (c) 100 100 Strategic Fund, Limited Obligation Revenue, Delta Containers, Inc. (AMT), 3.88%, 3/1/11 * 1,800 1,800 Strategic Fund, Limited Obligation Revenue, Detroit Symphony Project, Series B, 3.68%, 6/1/31 * 2,400 2,400 Strategic Fund, Limited Obligation Revenue, Eclipse Mold (AMT), 4.03%, 12/1/12 * (c) 400 400 Strategic Fund, Limited Obligation Revenue, Flyer Fund Leasing LLC Project, 3.88%, 11/1/17 * (c) 1,300 1,300 Strategic Fund, Limited Obligation Revenue, Gebara Management Co. LLC Project, 3.88%, 11/1/13 * (c) 300 300 Strategic Fund, Limited Obligation Revenue, Harbor Industries, Inc. Project, (AMT), 3.81%, 4/1/25 * 400 400 Strategic Fund, Limited Obligation Revenue, Heartland Goodwill Project, 3.66%, 9/1/25 * 600 600 Strategic Fund, Limited Obligation Revenue, Henry Ford Museum Village Project, 3.68%, 12/1/33 * 1,895 1,895 Strategic Fund, Limited Obligation Revenue, Jet Enterprises, (AMT), 3.78%, 3/1/11 * (c) 500 500 Strategic Fund, Limited Obligation Revenue, Lakeport Realty Project, 4.03%, 6/1/07 * (c) 200 200 Strategic Fund, Limited Obligation Revenue, Landscape Forms, Inc. Project, (AMT), 3.88%, 5/1/14 * (c) 200 200 Strategic Fund, Limited Obligation Revenue, Lansing Saint Vincent Home Project, 3.66%, 8/1/28 * 1,500 1,500 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Limited Obligation Revenue, Metal Technologies Project, (AMT), 3.82%, 7/1/19 * (c) $ 2,000 $ 2,000 Strategic Fund, Limited Obligation Revenue, Midwest Kellering Co. Project, (AMT), 3.88%, 6/1/19 * (c) 1,500 1,500 Strategic Fund, Limited Obligation Revenue, Milan Screw Products Inc. Project, (AMT), 3.88%, 9/1/16 * 400 400 Strategic Fund, Limited Obligation Revenue, MOT LLC Project, 3.66%, 12/1/34 * 1,300 1,300 Strategic Fund, Limited Obligation Revenue, Non-Ferrous Cast Alloys Project, (AMT), 3.88%, 3/1/19 * 435 435 Strategic Fund, Limited Obligation Revenue, Oak Industrial Drive Project, (AMT), 3.80%, 11/1/33 * (c) 950 950 Strategic Fund, Limited Obligation Revenue, Orchestra Place Renewal Project, 3.66%, 9/1/22 * 2,000 2,000 Strategic Fund, Limited Obligation Revenue, Peachwood Center, 3.66%, 6/1/16 * 1,000 1,000 Strategic Fund, Limited Obligation Revenue, Production Engineering Project, (AMT), 3.76%, 6/1/13 * (c) 1,400 1,400 Strategic Fund, Limited Obligation Revenue, Profile Industrial Packaging, (AMT), 3.81%, 9/1/09 * 225 225 Strategic Fund, Limited Obligation Revenue, R. L. Adams Plastics, Inc., (AMT), 3.80%, 5/1/23 * (c) 1,600 1,600 Strategic Fund, Limited Obligation Revenue, RA Rink LLC Project, (AMT), 4.03%, 11/1/17 * (c) 1,040 1,040 Strategic Fund, Limited Obligation Revenue, RL Enterprises LLC (AMT), 4.03%, 12/1/09 * (c) 400 400 Strategic Fund, Limited Obligation Revenue, Van Andel Research Institute Project, 3.68%, 11/1/27 * 500 500 Strategic Fund, Limited Obligation Revenue, Whitehall Industries, Inc. Project, (AMT), 3.76%, 3/1/25 * 100 100 Strategic Fund, Limited Obligation Revenue, Whitehall Industries, Inc., (AMT), 3.88%, 11/1/20 * (c) 700 700 Strategic Fund, Lions Bear Lake Camp Project, 3.77%, 8/1/32 * (c) 1,070 1,070 Strategic Fund, MacArthur, (AMT), 3.80%, 6/1/15 * 2,000 2,000 Continued 17 MICHIGAN MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Strategic Fund, Maco Steel, Inc., (AMT), 3.80%, 3/1/24 * $ 1,510 $ 1,510 Strategic Fund, Merrill Group, (AMT), 3.82%, 10/1/22 * (c) 1,250 1,250 Strategic Fund, Middleville Tool & Die Project, (AMT), 3.88%, 9/1/13 * (c) 2,100 2,100 Strategic Fund, Patten Monument, (AMT), 3.80%, 11/1/26 * 635 635 Strategic Fund, Phipps Emmett Association, (AMT), 3.81%, 12/1/23 * 2,000 2,000 Strategic Fund, Proto-Techniques, (AMT), 3.80%, 12/1/26 * (c) 2,355 2,355 Strategic Fund, Protomark Corp. Project, (AMT), 3.88%, 8/1/17 * (c) 400 400 Strategic Fund, SFI Acquisition, Inc., (AMT), 3.80%, 2/1/28 * (c) 900 900 Strategic Fund, Stegner East Investments LLC Project, (AMT), 3.80%, 6/1/29 * (c) 3,040 3,040 Strategic Fund, Thompson Family Holdings, (AMT), 3.87%, 7/1/28 * 860 860 Strategic Fund, Trenton Forging Co., (AMT), 3.76%, 6/1/20 * (c) 990 990 Strategic Fund, Trio Tool Co., (AMT), 3.72%, 7/1/24 * 1,325 1,325 Strategic Fund, Ultra Tech Printing Co., (AMT), 3.80%, 8/1/23 * 1,105 1,105 Strategic Fund, Waltec American Forging, (AMT), 3.88%, 10/1/14 * (c) 1,415 1,415 Strategic Fund, Warren Screw Products, Inc., (AMT), 3.88%, 9/1/16 * (c) 400 400 Strategic Fund, Wright K Technology, Inc., (AMT), 3.87%, 5/1/17 * (c) 595 595 Strategic Fund, YMCA Detroit Project, 3.69%, 5/1/31 * 1,000 1,000 University of Michigan Hospital Revenue, 3.67%, 12/1/35 * 2,400 2,400 University of Michigan Hospital Revenue, Series A, 3.65%, 12/1/19 * 3,500 3,500 University of Michigan, Medical Service Plan, Series A-1, 3.65%, 12/1/21 * 3,825 3,825 Warren Economic Development Corp., Limited Obligation, CMX Corp., (AMT), 3.65%, 3/15/07 * 275 275 Wayne Charter County, Airport Revenue, Detroit Metro County, (AMT), 3.70%, 12/1/16 * 500 500 Wayne Charter County, Airport Revenue, Detroit Metro County, Series D, (AMT), 5.25%, 12/1/06 1,000 1,006 ----------- 180,068 ----------- Continued SHARES OR PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED PUERTO RICO (2.5%) Industrial Medical & Environmental Pollution Control, Facilities Financing Authority, Abbott Laboratories, 3.55%, 3/1/23 * (c) $ 4,695 $ 4,695 ----------- TOTAL MUNICIPAL BONDS 185,463 ----------- MONEY MARKETS (0.2%) AIM Tax Free Money Market Fund 20,536 21 Dreyfus Tax Exempt Money Market Fund 6,265 6 Goldman Sachs Financial Tax Free Money Market Fund 310,898 310 Merrill Lynch Institutional Tax Exempt Fund 10,697 11 ----------- TOTAL MONEY MARKETS 348 ----------- TOTAL INVESTMENTS (COST $190,811) (A) - 99.7% 190,811 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 570 ----------- NET ASSETS - 100.0% $ 191,381 ===========
See notes to schedules of portfolio investments and notes to financial statements. 18 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) ----------------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- COMMERCIAL PAPER (1.8%) MICHIGAN (1.8%) State Building Authority, 3.50%, 8/3/06 $ 5,000 $ 5,000 ----------- TOTAL COMMERCIAL PAPER 5,000 ----------- MUNICIPAL BONDS (97.9%) ARIZONA (0.5%) Revenue Bond Certificate Series Trust, 3.89%, 12/1/34 * (c) 1,500 1,500 ----------- ARKANSAS (0.7%) Sheridan Industrial Development, 3.68%, 8/1/14 * (c) 2,000 2,000 ----------- COLORADO (8.0%) Arapahoe County Water and Wastewater Authority Revenue, Series A, 3.67%, 12/1/33 * 4,000 4,000 Aurora Centretech, Metropolitan District, Series A, 3.45%, 12/1/28 * 1,000 1,000 Castlewood Ranch Metropolitan District, 3.45%, 12/1/06 2,500 2,500 Central Platte Valley Metropolitan District, 3.45%, 12/1/31 * 500 500 Colorado Springs, Revenue, National Strength and Condition, 3.75%, 11/1/22 * 660 660 Commerce City Northern, 3.69%, 12/1/28 * 1,500 1,500 Denver City & County Airport Revenue, Series C, 3.70%, 11/15/25 * 2,400 2,400 Denver City & County Airport Revenue, Series F, 3.70%, 11/15/25 * 2,000 2,000 Durango, Revenue, Health and Human Services, 3.75%, 12/15/14 * 640 640 Parker, Automotive Metropolitan District, 3.45%, 12/1/34 * 2,000 2,000 Pinery West Metropolitan District No. 2, 3.25%, 11/1/06 4,200 4,200 Revenue Bond Certificate Series Trust, 3.89%, 12/1/34 * (c) 1,000 1,000 ----------- 22,400 ----------- FLORIDA (3.1%) Alachua County Health Facilities Authority Revenue, Shands Teaching Hospital and Clinic, 3.69%, 12/1/32 * 2,000 2,000 Alachua County Health Facilities Authority Revenue, Shands Teaching Hospital, Series A, 3.69%, 12/1/12 * 4,950 4,950 Collier County Housing Finance Authority Multi Family Revenue, 3.74%, 9/1/47 * 500 500 Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED FLORIDA, CONTINUED Hillsborough County Housing Finance Authority Multi Family Revenue, 3.70%, 12/15/38 * $ 1,340 $ 1,340 ----------- 8,790 ----------- GEORGIA (1.3%) Emanuel County Development Authority Revenue, 3.74%, 4/1/12 * 1,475 1,475 Kennesaw Development Authority, 3.69%, 4/1/37 * 1,500 1,500 Macon-Bibb County Hospital Authority Revenue, 3.69%, 5/1/30 * 700 700 ----------- 3,675 ----------- IDAHO (0.3%) Ada & Canyon Counties School District, 4.00%, 8/15/06 250 250 Power County, Pollution Control Revenue, FMC Corp. Project, 3.65%, 12/1/10 * 500 500 ----------- 750 ----------- ILLINOIS (13.5%) Chicago O'Hare International Airport Revenue, 5.00%, 1/1/07 330 332 Chicago Park District, Series B, 4.50%, 1/1/07 200 201 Chicago Solid Waste Disposal Facility Revenue, 3.80%, 12/1/15 * (c) 1,000 1,000 Crystal Lake Industrial Development Revenue, 3.84%, 6/1/36 * 1,500 1,500 Development Finance Authority Revenue, McCormick Theological, Series B, 3.66%, 6/1/35 * 2,000 2,000 Development Finance Authority, WTVP Channel 47, Series A, Lake County Family YMCA, 3.68%, 9/1/22 * 3,650 3,650 Development Financial Authority Pollution Control Revenue, Diamond Star Motors Project, 3.70%, 12/1/08 * (c) 1,700 1,700 Development Financial Authority Revenue, World Communications, Inc., 3.72%, 8/1/15 * 875 875 Educational Facilities Authority, Field Museum of Natural History, 3.72%, 11/1/25 * (c) 4,900 4,900 Educational Facilities Authority, Lake County Family YMCA, 3.72%, 11/1/30 * 1,450 1,450 Financial Authority Revenue, (AMT), 3.76%, 8/1/24 * 1,700 1,700 Financial Authority Revenue, (AMT), 3.76%, 6/1/25 * 1,300 1,300 Financial Authority Revenue, (AMT), 3.70%, 6/1/26 * 4,000 4,000 Continued 19 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED ILLINOIS, CONTINUED Health Facilities Authority, 3.67%, 1/1/16 * (c) $ 2,000 $ 2,000 Health Facilities Authority Revenue, 3.67%, 8/15/33 * 1,500 1,500 Lake Villa, Allendale Association, 3.72%, 10/1/26 * (c) 4,640 4,640 Peoria, Peoria Academy, 3.83%, 9/1/26 * (c) 4,300 4,300 Rock Island County Airport Authority Revenue, 3.68%, 12/1/18 * 1,235 1,235 ----------- 38,283 ----------- INDIANA (5.8%) Advanced Funding Program, Series A, 4.50%, 2/1/07 1,000 1,006 Bond Bank Revenue, 4.00%, 8/1/06 500 500 Crawfordsville, Economic Development, Autumn Woods Apartments, Series A, 3.66%, 1/1/30 * 3,349 3,349 Dekko Foundation Educational Facilities Revenue, Series I, 3.83%, 4/1/21 * (c) 605 605 Development Financial Authority, Mental Health, 3.75%, 12/1/22 * (c) 3,400 3,400 Development Financial Authority, Regional Council of Carpenters, 3.77%, 9/1/31 * (c) 1,195 1,195 Indianapolis, State Development Finance Authority, Lutheran Educational Facilities Project, 3.67%, 10/1/17 * (c) 2,475 2,475 Ivy Tech Community College, Series K, 4.00%, 7/1/07 330 331 Saint Joseph County, Economic Development Revenue, 3.75%, 6/1/22 * 2,300 2,300 State Development Finance Authority Environmental Revenue, (AMT), 3.74%, 9/1/31 * 1,000 1,000 ----------- 16,161 ----------- IOWA (1.8%) Higher Education Authority, 3.68%, 4/1/33 * 1,300 1,300 Higher Education Authority Revenue, 3.68%, 7/1/25 * 1,700 1,700 Sergeant Bluff Industrial Development Revenue, 3.76%, 3/1/16 * (c) 2,100 2,100 ----------- 5,100 ----------- KANSAS (0.3%) Development Finance Authority, Shalom Revenue, 3.68%, 11/15/28 * 750 750 ----------- Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED KENTUCKY (1.8%) Breckinridge County Lease Program, 3.68%, 2/1/32 * $ 5,152 $ 5,152 ----------- MARYLAND (1.0%) Baltimore County Economic Development Revenue, Garrison Forest School Project, 3.69%, 6/1/26 * 2,700 2,700 ----------- MICHIGAN (13.6%) Detroit Waterfront Reclamation, Series C, 3.68%, 5/1/09 * 2,000 2,000 Hospital Financial Authority Revenue, Crittenton Hospital, Series A, 3.68%, 3/1/14 * 5,610 5,610 Hospital Financial Authority Revenue, Crittenton Hospital, Series A, 3.68%, 3/1/30 * 2,000 2,000 Jackson County Economic Development Corp., Limited Obligation Revenue, Vista Grande Villa, Series A, 3.67%, 11/1/31 * 300 300 Livonia Economic Development Corp., 3.65%, 8/1/15 * (c) 720 720 Macomb County Hospital Finance Authority Mount Clemens, Series A, 3.70%, 10/1/20 * 12,000 12,000 Muskegon County Wastewater Management System No. 1, (AMT), 5.00%, 7/1/07 1,110 1,123 State Hospital Finance Authority Revenue, 3.67%, 5/1/36 * 2,185 2,185 Strategic Fund, Limited Obligation Revenue, Detroit Symphony Project, Series B, 3.68%, 6/1/31 * 5,755 5,755 Strategic Fund, Limited Obligation Revenue, Heartland Goodwill Project, 3.66%, 9/1/25 * 1,000 1,000 Strategic Fund, Limited Obligation Revenue, Lansing Saint Vincent Home Project, 3.66%, 8/1/28 * 5,145 5,145 University of Michigan Hospital Revenue, Series A, 3.65%, 12/1/19 * 300 300 ----------- 38,138 ----------- MINNESOTA (4.1%) Blue Earth Industrial Development Revenue, (AMT), 3.85%, 6/1/21 * 1,440 1,440 Lauderdale, Children's Home Society, 3.73%, 12/1/30 * 415 415 Little Canada Industrial Development Revenue, (AMT), 3.85%, 6/1/16 * (c) 420 420 Minneapolis, Minnehaha Academy Project, 3.73%, 5/1/26 * 3,600 3,600 Continued 20 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED MINNESOTA, CONTINUED Roseville Health Care Facilities Revenue, Presbyterian Homes Project, 3.73%, 10/1/29 * $ 2,630 $ 2,630 Saint Paul Housing & Redevelopment Authority, Multifamily Housing Revenue, (AMT), 3.76%, 1/1/27 * 400 400 State Higher Education Facilities Authority Revenue, 3.68%, 10/1/30 * 1,335 1,335 State Higher Education Facilities, Series 5-M1, 3.68%, 10/1/32 * 1,190 1,190 ----------- 11,430 ----------- MISSOURI (1.9%) Health & Educational Facilities Authority, Saint Francis Medical Center, Series A, 3.68%, 6/1/26 * 385 385 Sikeston Industrial Development Authority Revenue, 3.85%, 7/1/09 * (c) 765 765 State Health & Education Facilities Authority, Drury College, 3.73%, 8/15/24 * 1,000 1,000 State Health & Educational Facilities Authority, Drury University, 3.73%, 8/15/28 * 1,645 1,645 State Health & Educational Facilities Authority, Missouri Valley College, 3.73%, 10/1/31 * 1,600 1,600 ----------- 5,395 ----------- NEVADA (4.7%) Clark County Industrial Development Revenue, 3.72%, 11/1/20 * 13,000 13,000 Douglas County, Solid Waste Disposal, 3.00%, 12/1/06 100 100 ----------- 13,100 ----------- NEW HAMPSHIRE (0.9%) New Hampshire Business Finance Authority Industrial Development Revenue, 3.68%, 6/1/23 * (c) 2,600 2,600 ----------- NEW MEXICO (1.7%) Farmington Pollution Control Revenue, Series C, 3.69%, 9/1/24 * 4,700 4,700 ----------- NEW YORK (2.1%) New York City Housing Development Corp. Multi Family Revenue, 3.70%, 6/1/36 * 2,300 2,300 State Environmental Facilities Corp. Solid Waste Disposal Revenue, Series B, 3.70%, 5/1/19 * 3,100 3,100 State Housing Finance Authority Revenue, (AMT), 3.68%, 11/1/36 * 500 500 ----------- 5,900 ----------- Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED NORTH CAROLINA (1.7%) Capital Facilities Finance Agency Exempt Revenue, 3.74%, 7/1/34 * $ 1,300 $ 1,300 Halifax County Industrial Facilities & Pollution Financing Authority Revenue, 3.74%, 12/1/19 * 2,400 2,400 Lee County Industrial Facilities & Pollution Control Funding Authority Revenue, Trion, Inc. Project, 3.76%, 11/1/11 * (c) 1,000 1,000 ----------- 4,700 ----------- NORTH DAKOTA (0.2%) Hebron Industrial Development Revenue, 3.75%, 3/1/15 * (c) 440 440 ----------- OHIO (5.1%) Anderson Township, 4.75%, 6/14/07 2,490 2,511 Columbiana County, Revenue, East Liverpool, 3.72%, 10/1/23 * 1,175 1,175 Coshocton County, Hospital Revenue, 3.83%, 3/1/14 * (c) 180 180 Greene County, 3.50%, 8/16/06 1,000 1,000 Independence, Economic Development Revenue, 3.72%, 12/1/16 * 2,550 2,550 Montgomery County, Economic Development, Benjamin & Marian Arts Center, Series A, 3.72%, 4/1/11 * 1,160 1,160 Montgomery County, Economic Development, The Dayton Art Institute, 3.72%, 5/1/26 * 1,400 1,400 Montgomery County, Health Care Facilities, Community Blood Center, 3.83%, 12/1/20 * 1,580 1,580 State Higher Education Facilities Revenue, Ashland University Project, 3.69%, 9/1/24 * 1,825 1,825 Summit County, Industrial Development Revenue, SSP Fittings Corporate Project, 3.98%, 9/1/11 * 825 825 ----------- 14,206 ----------- OREGON (1.7%) Portland Special Obligation Revenue, (AMT), 3.69%, 3/1/36 * 2,000 2,000 State Economic Development Revenue, 3.74%, 12/1/25 * 2,400 2,400 State Economic Development Revenue, (AMT), 3.75%, 11/1/16 * (c) 500 500 ----------- 4,900 ----------- Continued 21 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) ---------------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED PENNSYLVANIA (7.4%) Allegheny County Hospital Development Authority Revenue, 3.78%, 5/1/07 $ 2,000 $ 2,000 Allegheny County Port Authority, 4.50%, 6/29/07 1,300 1,308 Allegheny County, Industrial Development Authority Revenue, Sacred Heart High School, 3.70%, 6/1/22 * 1,200 1,200 Allegheny County, Industrial Development Authority Revenue, Sewickley Academy, Series A, 3.71%, 11/1/22 * 1,100 1,100 Berks County Industrial Development Authority Revenue, (AMT), 3.74%, 12/1/11 * 1,415 1,415 Higher Educational Facilities Authority Revenue, 3.19%, 11/1/06 1,600 1,600 North Wales Water Authority, Rural Water Projects Revenue, 4.00%, 10/1/06 3,000 3,005 Philadelphia Authority for Industrial Development Revenues, Newcourtland Elderly Services Project, 3.68%, 3/1/27 * 6,800 6,800 Somerset County Hospital Authority Revenue, 3.40%, 3/1/22 * 1,000 1,000 Westmoreland County Industrial Development Authority, 3.68%, 12/1/24 * 1,500 1,500 ----------- 20,928 ----------- SOUTH CAROLINA (0.2%) Jobs Economic Development Authority Industrial Revenue, 3.78%, 2/1/26 * 500 500 ----------- SOUTH DAKOTA (3.4%) Lawrence County Solid Waste Disposal Revenue, Series A, 3.76%, 7/1/32 * 9,600 9,600 ----------- TENNESSEE (0.9%) Greenville Industrial Development Revenue, 3.68%, 5/1/13 * (c) 500 500 Lewisburg Industrial Development Board, Solid Waste Disposal, (AMT), 3.74%, 7/1/33 * 2,000 2,000 ----------- 2,500 ----------- Continued PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED TEXAS (2.7%) Lufkin Health Facilities Development Corp., 3.68%, 2/15/35 * $ 900 $ 900 Mansfield Industrial Development Corp. Revenue, 3.72%, 11/1/26 * 2,600 2,600 Tax & Revenue Anticipation Notes, 4.50%, 8/31/06 2,000 2,002 Waco Industrial Development Corp. Economic Development Revenue, 3.85%, 6/1/14 * 2,100 2,100 ----------- 7,602 ----------- UTAH (1.0%) Housing Corp., Single Family Mortgage Revenue, Series A, Class I, (AMT), 2.35%, 7/1/07 380 372 Salt Lake County Training Facilities Revenue, Community Foundation Disabled Project, 3.75%, 8/1/30 * 1,540 1,540 Weber County Industrial Revenue, Enable Industries, Inc., 3.75%, 12/1/15 * 1,000 1,000 ----------- 2,912 ----------- VIRGINIA (1.6%) Brunswick County Industrial Development Authority, 3.88%, 1/1/17 * 1,000 1,000 King George County Industrial Development Authority Revenue, 3.69%, 12/1/24 * 900 900 Suffolk Redevelopment & Housing Authority, Multi-Family Housing Revenue, North Beach Apartments, 3.74%, 9/1/19 * (c) 1,400 1,400 Wythe County Industrial Development Authority Revenue, (AMT), 3.79%, 12/1/14 * (c) 1,230 1,230 ----------- 4,530 ----------- WASHINGTON (3.7%) Bremerton Revenue, 3.68%, 12/1/28 * 3,000 3,000 Health Care Facilities Authority Revenue, Inland Northwest Blood, 3.68%, 8/1/26 * 4,055 4,055 Kitsap County Industrial Development Corp., 3.75%, 6/1/31 * 1,000 1,000 Pierce County School District, 3.50%, 12/1/06 250 250 Seattle Housing Authority Revenue, 3.71%, 12/1/36 * 400 400 Yakama Indian Nation Confederated Tribes & Bands, 3.71%, 6/1/07 * (c) 1,300 1,300 Yakima County Public Corp., 3.81%, 1/1/18 * 400 400 ----------- 10,405 ----------- Continued 22 MUNICIPAL MONEY MARKET FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ---------------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------------------------- MUNICIPAL BONDS, CONTINUED WISCONSIN (1.2%) Manitowoc Industrial Development Revenue, (AMT), 3.84%, 6/1/31 * $ 2,300 $ 2,300 Oconomowoc Community Development Authority Multifamily Revenue, 3.71%, 12/1/44 * 1,200 1,200 ----------- 3,500 ----------- TOTAL MUNICIPAL BONDS 275,247 ----------- MONEY MARKETS (0.1%) AIM Tax Free Money Market Fund 1,507 2 Dreyfus Tax Exempt Money Market Fund 37,655 38 Goldman Sachs Financial Tax Free Money Market Fund 287,977 287 ----------- TOTAL MONEY MARKETS 327 ----------- TOTAL INVESTMENTS (COST $280,574) (A) - 99.8% 280,574 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 429 ----------- NET ASSETS - 100.0% $ 281,003 ===========
See notes to schedules of portfolio investments and notes to financial statements. NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS * Variable rate security. Rate presented represents the rate in effect at July 31, 2006. Maturity date reflects the actual maturity date. ** Effective yield at purchase. (a) Also represents cost for federal income tax purposes. (b) Collateralized by various U.S. Treasury and Government Agency securities, 0.00%-9.25%, 08/03/06-02/15/29. Collateral Security Proceeds Value ABN AMRO $250,036 $255,001 Bank of America 75,011 76,501 Deutsche Bank 265,039 270,301 Nesbitt Burns 200,029 204,000 UBS Investment Bank 238,785 243,527 (c) 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. The following abbreviations are used in these Schedules of Portfolio Investments: AMT - Alternative Minimum Tax Paper FHLB - Federal Home Loan Bank GO - General Obligation LOC - Letter of Credit See notes to financial statements. 23 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2006 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL MONEY MARKET MONEY MARKET GOVERNMENT MONEY ASSETS: FUND FUND MARKET FUND ------------ ------------- ---------------- Investments, at amortized cost and value $ 913,996 $1,387,454 $408,717 Repurchase agreements, at cost and value 105,418 170,389 188,312 ---------- ---------- -------- Total Investments 1,019,414 1,557,843 597,029 Cash 1 -- 1 Interest receivable 5,595 8,972 2,083 Receivable from Advisor and affiliates 14 28 12 Prepaid expenses and other assets 39 23 16 ---------- ---------- -------- Total Assets 1,025,063 1,566,866 599,141 ---------- ---------- -------- LIABILITIES: Payable to Custodian -- 5 -- Distributions payable 1,951 3,386 2,019 Payable for investments purchased -- 4,889 -- Accrued expenses and other payables: Payable to Advisor and affiliates 376 155 69 Distribution and administrative services fees 98 39 50 Other 181 159 71 ---------- ---------- -------- Total Liabilities 2,606 8,633 2,209 ---------- ---------- -------- NET ASSETS: Paid-in Capital $1,022,463 $1,558,205 $596,924 Accumulated net investment income 86 29 8 Accumulated net realized loss from investment transactions (92) (1) --^ ---------- ---------- -------- Net Assets $1,022,457 $1,558,233 $596,932 ========== ========== ======== Net Assets: Institutional Shares $ 563,551 $1,263,609 $304,332 Class A Shares 455,183 NA NA Class B Shares 1,216 NA NA Class C Shares 879 NA NA Advisor Shares 1,628 NA NA Select Shares NA 35,579 6,337 Preferred Shares NA 98,263 190,260 Trust Shares NA 160,782 96,003 ---------- ---------- -------- Total $1,022,457 $1,558,233 $596,932 ========== ========== ======== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 563,596 1,263,583 304,329 Class A Shares 455,184 NA NA Class B Shares 1,218 NA NA Class C Shares 880 NA NA Advisor Shares 1,628 NA NA Select Shares NA 35,579 6,337 Preferred Shares NA 98,262 190,259 Trust Shares NA 160,782 96,002 ---------- ---------- -------- Total 1,022,506 1,558,206 596,927 ========== ========== ======== Net Asset Value Offering and redemption price per share - Institutional Shares, Class A Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00 $ 1.00 ========== ========== ======== GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET ASSETS: FUND FUND FUND FUND ------------ ------------- ------------------ ------------ Investments, at amortized cost and value $200,275 $ 161,758 $190,811 $280,574 Repurchase agreements, at cost and value -- 1,028,750 -- -- -------- ---------- -------- -------- Total Investments 200,275 1,190,508 190,811 280,574 Cash -- 1 -- -- Interest receivable 820 1,003 983 1,111 Receivable from Advisor and affiliates 1 7 2 8 Prepaid expenses and other assets 18 18 5 20 -------- ---------- -------- -------- Total Assets 201,114 1,191,537 191,801 281,713 -------- ---------- -------- -------- LIABILITIES: Payable to Custodian -- -- -- --^ Distributions payable 567 4,101 328 642 Payable for investments purchased -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 76 113 67 31 Distribution and administrative services fees 9 104 --^ 12 Other 29 150 25 25 -------- ---------- -------- -------- Total Liabilities 681 4,468 420 710 -------- ---------- -------- -------- NET ASSETS: Paid-in Capital $200,371 $1,187,210 $191,391 $281,006 Accumulated net investment income 64 1 (10) --^ Accumulated net realized loss from investment transactions (2) (142) -- (3) -------- ---------- -------- -------- Net Assets $200,433 $1,187,069 $191,381 $281,003 ======== ========== ======== ======== Net Assets: Institutional Shares $127,537 $ 386,757 $189,695 $214,995 Class A Shares 72,896 NA 1,686 27,027 Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA 61,992 NA 10,551 Preferred Shares NA 625,196 NA 2,402 Trust Shares NA 113,124 NA 26,028 -------- ---------- -------- -------- Total $200,433 $1,187,069 $191,381 $281,003 ======== ========== ======== ======== Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 127,558 386,689 189,653 214,990 Class A Shares 72,936 NA 1,687 27,039 Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA 61,989 NA 10,551 Preferred Shares NA 625,171 NA 2,402 Trust Shares NA 113,121 NA 26,028 -------- ---------- -------- -------- Total 200,494 1,186,970 191,340 281,010 ======== ========== ======== ======== Net Asset Value Offering and redemption price per share - Institutional Shares, Class A Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred Shares and Trust Shares (a) $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ========== ======== ========
(a) Redemption price per share for Class B Shares and Class C Shares varies by length of time shares are held. ^ Amount is less than five hundred dollars. See notes to financial statements 24-25 spread FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2006 (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL MONEY MARKET MONEY MARKET GOVERNMENT MONEY FUND FUND MARKET FUND -------------- -------------- -------------------- INVESTMENT INCOME: Interest income $56,328 $60,749 $27,376 Dividend income 216 230 81 ------- ------- ------- Total Investment Income 56,544 60,979 27,457 ------- ------- ------- EXPENSES: Investment advisory fees 5,163 5,458 2,506 Administrative fees 2,271 2,390 1,096 Distribution services fees-Class A Shares 1,074 NA NA Distribution services fees-Class B Shares 10 NA NA Distribution services fees-Class C Shares 9 NA NA Distribution services fees-Advisor Shares 4 NA NA Administrative services fees-Class C Shares 3 NA NA Administrative services fees-Select Shares NA 24 3 Administrative services fees-Preferred Shares NA 50 347 Administrative services fees-Trust Shares NA 135 293 Accounting fees 259 259 156 Transfer and dividend disbursing agent fees 275 274 137 Custody fees 63 72 42 Trustees' fees and expenses 55 61 25 Other expenses 429 393 213 ------- ------- ------- Total expenses 9,615 9,116 4,818 ------- ------- ------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (1,523) (6,040) (2,840) Transfer and dividend disbursing agent fees waived (12) (9) (9) Distribution services-Class A Shares waived -- -- -- ------- ------- ------- Net expenses 8,080 3,067 1,969 ------- ------- ------- Net Investment Income 48,464 57,912 25,488 ------- ------- ------- Net realized gains (losses) on investment transactions 7 -- -- ------- ------- ------- Change in net assets resulting from operations $48,471 $57,912 $25,488 ======= ======= ======= GOVERNMENT U.S. TREASURY MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET FUND FUND FUND FUND -------------- -------------- -------------------- ------------ INVESTMENT INCOME: Interest income $9,311 $50,296 $5,581 $6,818 Dividend income 346 179 94 111 ------ ------- ------ ------ Total Investment Income 9,657 50,475 5,675 6,929 ------ ------- ------ ------ EXPENSES: Investment advisory fees 899 4,753 716 1,104 Administrative fees 393 2,078 313 398 Distribution services fees-Class A Shares 211 NA 1 59 Distribution services fees-Class B Shares NA NA NA NA Distribution services fees-Class C Shares NA NA NA NA Distribution services fees-Advisor Shares NA NA NA NA Administrative services fees-Class C Shares NA NA NA NA Administrative services fees-Select Shares NA 57 NA 2 Administrative services fees-Preferred Shares NA 948 NA 1 Administrative services fees-Trust Shares NA 298 NA 24 Accounting fees 59 228 52 96 Transfer and dividend disbursing agent fees 58 241 41 63 Custody fees 22 76 22 32 Trustees' fees and expenses 8 45 7 9 Other expenses 82 338 53 82 ------ ------- ------ ------ Total expenses 1,732 9,062 1,205 1,870 ------ ------- ------ ------ Less: Waiver and/or reimbursement from Advisor and/or affiliates (209) (5,251) (237) (1,235) Transfer and dividend disbursing agent fees waived -- (9) -- (2) Distribution services-Class A Shares waived (69) -- --^ -- ------ ------- ------ ------ Net expenses 1,454 3,802 968 633 ------ ------- ------ ------ Net Investment Income 8,203 46,673 4,707 6,296 ------ ------- ------ ------ Net realized gains (losses) on investment transactions --^ 2 --^ 2 ------ ------- ------ ------ Change in net assets resulting from operations $8,203 $46,675 $4,707 $6,298 ====== ======= ====== ======
^ Amount is less than five hundred dollars. See notes to financial statements 26-27 spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
INSTITUTIONAL PRIME INSTITUTIONAL GOVERNMENT MONEY MARKET MONEY MARKET MONEY MARKET FUND FUND FUND ----------------------- ----------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 2006 2005 ---------- ---------- ---------- ---------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 48,464 $ 26,689 $ 57,912 $ 26,251 $ 25,488 $ 12,286 Net realized gains (losses) from investment transactions 7 (99) -- (1) -- --^ ---------- ---------- ---------- ---------- --------- --------- Change in net assets resulting from operations 48,471 26,590 57,912 26,250 25,488 12,286 ---------- ---------- ---------- ---------- --------- --------- DISTRIBUTIONS TO SHAREHOLDERS: Institutional Shares (32,705) (19,802) (53,024) (24,724) (11,623) (4,760) Class A Shares (15,668) (6,827) NA NA NA NA Class B Shares (27) (43) NA NA NA NA Class C Shares (35) (16) NA NA NA NA Advisor Shares (29) (1) NA NA NA NA Select Shares NA NA (1,225) (380) (153) (94) Preferred Shares NA NA (1,409) (726) (9,199) (5,145) Trust Shares NA NA (2,254) (421) (4,513) (2,287) ---------- ---------- ---------- ---------- --------- --------- Change in net assets from shareholder distributions (48,464) (26,689) (57,912) (26,251) (25,488) (12,286) ---------- ---------- ---------- ---------- --------- --------- Change in net assets from fund share transactions (403,532) (30,495) 408,824 41,738 (19,249) 40,484 ---------- ---------- ---------- ---------- --------- --------- Change in net assets (403,525) (30,594) 408,824 41,737 (19,249) 40,484 NET ASSETS: Beginning of period 1,425,982 1,456,576 1,149,409 1,107,672 616,181 575,697 ---------- ---------- ---------- ---------- --------- --------- End of period $1,022,457 $1,425,982 $1,558,233 $1,149,409 $ 596,932 $ 616,181 ========== ========== ========== ========== ========= ========= Accumulated Net Investment Income/(Loss) $ 86 $ 85 $ 29 $ 29 $ 8 $ 7 ========== ========== ========== ========== ========= ========= GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET FUND FUND ----------------------- ------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 --------- --------- ---------- ---------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 8,203 $ 4,496 $ 46,673 $ 27,542 Net realized gains (losses) from investment transactions --^ --^ 2 13 --------- --------- ---------- ---------- Change in net assets resulting from operations 8,203 4,496 46,675 27,555 --------- --------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Institutional Shares (5,198) (2,887) (15,029) (7,279) Class A Shares (2,969) (1,581) NA NA Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA NA (2,824) (1,723) Preferred Shares NA NA (24,294) (16,072) Trust Shares NA NA (4,526) (2,468) --------- --------- ---------- ---------- Change in net assets from shareholder distributions (8,167) (4,468) (46,673) (27,542) --------- --------- ---------- ---------- Change in net assets from fund share transactions (39,006) (44,643) (76,394) (497,345) --------- --------- ---------- ---------- Change in net assets (38,970) (44,615) (76,392) (497,332) NET ASSETS: Beginning of period 239,403 284,018 1,263,461 1,760,793 --------- --------- ---------- ---------- End of period $ 200,433 $ 239,403 $1,187,069 $1,263,461 ========= ========= ========== ========== Accumulated Net Investment Income/(Loss) $ 64 $ 28 $ 1 $ --^ ========= ========= ========== ========== MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET FUND FUND ------------------------ ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 4,707 $ 2,648 $ 6,296 $ 2,835 Net realized gains (losses) from investment transactions --^ --^ 2 -- --------- --------- --------- --------- Change in net assets resulting from operations 4,707 2,648 6,298 2,835 --------- --------- --------- --------- DISTRIBUTIONS TO SHAREHOLDERS: Institutional Shares (4,693) (2,647) (5,331) (2,449) Class A Shares (14) (1) (622) (318) Class B Shares NA NA NA NA Class C Shares NA NA NA NA Advisor Shares NA NA NA NA Select Shares NA NA (64) (4) Preferred Shares NA NA (14) (2) Trust Shares NA NA (265) (62) --------- --------- --------- --------- Change in net assets from shareholder distributions (4,707) (2,648) (6,296) (2,835) --------- --------- --------- --------- Change in net assets from fund share transactions 26,867 (32,729) 58,909 66,456 --------- --------- --------- --------- Change in net assets 26,867 (32,729) 58,911 66,456 NET ASSETS: Beginning of period 164,514 197,243 222,092 155,636 --------- --------- --------- --------- End of period $ 191,381 $ 164,514 $ 281,003 $ 222,092 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ (10) $ (10) $ --^ $ --^ ========= ========= ========= =========
^ Amount is less than five hundred dollars. See notes to financial statements 28-29 spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
PRIME INSTITUTIONAL INSTITUTIONAL GOVERNMENT MONEY MARKET FUND MONEY MARKET MONEY MARKET FUND FUND FUND ----------------------- ----------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 2006 2005 ---------- ---------- ---------- ---------- ---------- ---------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 1,629,794 2,228,288 5,892,873 4,778,153 1,832,832 1,880,786 Dividends reinvested 4,695 2,262 26,298 11,952 2,029 564 Shares redeemed (2,029,677) (2,336,368) (5,732,822) (4,762,451) (1,795,236) (1,840,494) ---------- ---------- ---------- ---------- ---------- ---------- Total Institutional Shares (395,188) (105,818) 186,349 27,654 39,625 40,856 ---------- ---------- ---------- ---------- ---------- ---------- Class A Shares Shares issued 651,274 413,667 NA NA NA NA Dividends reinvested 16,625 6,049 NA NA NA NA Shares redeemed (677,111) (342,721) NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Total Class A Shares (9,212) 76,995 NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Class B Shares Shares issued 830 32,582 NA NA NA NA Dividends reinvested 20 9 NA NA NA NA Shares redeemed (973) (32,901) NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Total Class B Shares (123) (310) NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Class C Shares Shares issued 1,418 398 NA NA NA NA Dividends reinvested 36 14 NA NA NA NA Shares redeemed (2,049) (1,780) NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Total Class C Shares (595) (1,368) NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Advisor Shares Shares issued 3,359 210 NA NA NA NA Dividends reinvested 29 --^ NA NA NA NA Shares redeemed (1,802) (204) NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Total Advisor Shares 1,586 6 NA NA NA NA ---------- ---------- ---------- ---------- ---------- ---------- Select Shares Shares issued NA NA 119,127 66,974 16,859 70,606 Dividends reinvested NA NA 1,084 261 -- 9 Shares redeemed NA NA (108,556) (56,578) (12,698) (73,641) ---------- ---------- ---------- ---------- ---------- ---------- Total Select Shares NA NA 11,655 10,657 4,161 (3,026) ---------- ---------- ---------- ---------- ---------- ---------- Preferred Shares Shares issued NA NA 295,319 267,927 1,001,430 1,094,119 Dividends reinvested NA NA 1,297 538 5,130 1,965 Shares redeemed NA NA (221,531) (272,494) (1,044,855) (1,143,902) ---------- ---------- ---------- ---------- ---------- ---------- Total Preferred Shares NA NA 75,085 (4,029) (38,295) (47,818) ---------- ---------- ---------- ---------- ---------- ---------- Trust Shares Shares issued NA NA 392,172 119,393 263,920 288,065 Dividends reinvested NA NA 981 343 490 322 Shares redeemed NA NA (257,418) (112,280) (289,150) (237,914) ---------- ---------- ---------- ---------- ---------- ---------- Total Trust Shares NA NA 135,735 7,456 (24,740) 50,473 ---------- ---------- ---------- ---------- ---------- ---------- GOVERNMENT U.S. TREASURY MONEY MARKET MONEY MARKET FUND FUND -------------------- ------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 -------- -------- ---------- ---------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 281,380 302,031 1,004,979 1,181,212 Dividends reinvested 56 25 1,415 337 Shares redeemed (297,949) (331,912) (915,221) (1,285,163) -------- -------- ---------- ---------- Total Institutional Shares (16,513) (29,856) 91,173 (103,614) -------- -------- ---------- ---------- Class A Shares Shares issued 83,238 95,093 NA NA Dividends reinvested 2,860 1,290 NA NA Shares redeemed (108,591) (111,171) NA NA -------- -------- ---------- ---------- Total Class A Shares (22,493) (14,788) 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 NA NA 516,145 721,963 Dividends reinvested NA NA -- --^ Shares redeemed NA NA (537,325) (732,025) -------- -------- ---------- ---------- Total Select Shares NA NA (21,180) (10,062) -------- -------- ---------- ---------- Preferred Shares Shares issued NA NA 3,762,766 3,142,600 Dividends reinvested NA NA 5,206 2,434 Shares redeemed NA NA (3,909,465) (3,481,318) -------- -------- ---------- ---------- Total Preferred Shares NA NA (141,493) (336,284) -------- -------- ---------- ---------- Trust Shares Shares issued NA NA 398,521 498,703 Dividends reinvested NA NA 7 14 Shares redeemed NA NA (403,422) (546,101) -------- -------- ---------- ---------- Total Trust Shares NA NA (4,894) (47,384) -------- -------- ---------- ---------- MICHIGAN MUNICIPAL MUNICIPAL MONEY MARKET MONEY MARKET FUND FUND --------------------- -------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 -------- -------- -------- -------- SHARE TRANSACTIONS:* Institutional Shares Shares issued 436,822 431,915 735,196 548,248 Dividends reinvested 1,729 940 729 179 Shares redeemed (413,261) (465,676) (708,761) (496,898) -------- -------- -------- -------- Total Institutional Shares 25,290 (32,821) 27,164 51,529 -------- -------- -------- -------- Class A Shares Shares issued 11,463 118 128,704 128,126 Dividends reinvested 13 --^ 629 281 Shares redeemed (9,899) (26) (127,822) (120,484) -------- -------- -------- -------- Total Class A Shares 1,577 92 1,511 7,923 -------- -------- -------- -------- Class B Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA -------- -------- -------- -------- Total Class B Shares NA NA NA NA -------- -------- -------- -------- Class C Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA -------- -------- -------- -------- Total Class C Shares NA NA NA NA -------- -------- -------- -------- Advisor Shares Shares issued NA NA NA NA Dividends reinvested NA NA NA NA Shares redeemed NA NA NA NA -------- -------- -------- -------- Total Advisor Shares NA NA NA NA -------- -------- -------- -------- Select Shares Shares issued NA NA 23,889 960 Dividends reinvested NA NA 1 3 Shares redeemed NA NA (13,425) (1,740) -------- -------- -------- -------- Total Select Shares NA NA 10,465 (777) -------- -------- -------- -------- Preferred Shares Shares issued NA NA 2,371 6 Dividends reinvested NA NA 1 2 Shares redeemed NA NA (6) (609) -------- -------- -------- -------- Total Preferred Shares NA NA 2,366 (601) -------- -------- -------- -------- Trust Shares Shares issued NA NA 56,164 31,202 Dividends reinvested NA NA 59 12 Shares redeemed NA NA (38,820) (22,833) -------- -------- -------- -------- Total Trust Shares NA NA 17,403 8,381 -------- -------- -------- --------
* Share transactions are at a par value of $1.00 per share. ^ Amount is less than five hundred shares. See notes to financial statements 30-31 sperad FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 2006 -------------------------------------------------------------------------------- (1) ORGANIZATION The Fifth Third Funds (the "Trust") are 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. At July 31, 2006, the Trust consisted of thirty-six separate investment portfolios, one of which is not currently offered and not included in these financial statements. The accompanying financial statements and notes relate only to the following Funds (individually a "Fund" and collectively the "Funds"): PORTFOLIO NAME Fifth Third Prime Money Market Fund ("Prime Money Market Fund") Fifth Third Institutional Money Market Fund ("Institutional Money Market Fund") Fifth Third Institutional Government Money Market Fund ("Institutional Government Money Market Fund") Fifth Third Government Money Market Fund ("Government Money Market Fund") Fifth Third U.S. Treasury Money Market Fund ("U. S. Treasury Money Market Fund") Fifth Third Michigan Municipal Money Market Fund ("Michigan Municipal Money Market Fund") Fifth Third Municipal Money Market Fund ("Municipal Money Market Fund") The Government Money Market Fund and the Michigan Municipal Money Market Fund each offer two classes of shares: Institutional Shares and Class A Shares. The Institutional Money Market Fund, the Institutional Government Money Market Fund and the U.S. Treasury Money Market Fund offer four classes of shares: Institutional Shares, Select Shares, Preferred Shares and Trust Shares. The Prime Money Market Fund offers five classes of shares: Institutional Shares, Class A Shares, Class B Shares, Class C Shares and Advisor Shares. The Municipal Money Market Fund offers five classes of shares: Institutional Shares, Class A Shares, Select Shares, Preferred Shares and Trust Shares. Each class of shares for each Fund has identical rights and privileges except with respect to administrative services fees paid by Class C Shares, Select Shares, Preferred Shares and Trust Shares, distribution services fees paid by Class A Shares, Class B Shares, Class C Shares and Advisor Shares, voting rights on matters affecting a single class of shares and the exchange privileges of each class of shares. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnification. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect their risk of loss to be remote. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States. 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 and the reported amounts of increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. SECURITIES VALUATIONS--Investments of the Funds are valued at either amortized cost, which approximates market value, or at original cost, which combined with accrued interest approximates market value. Under the amortized cost method, discount or premium is accreted or amortized on a constant basis to the maturity of the security. Investments in other open-end investment companies are valued at net asset value as reported by the underlying investment company. REPURCHASE AGREEMENTS--The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by Fifth Third Asset Management, Inc. (the "Advisor") to be creditworthy pursuant to guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). It is the policy of the Funds to require the custodian or sub-custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by 32 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement transaction. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. SECURITIES TRANSACTIONS AND RELATED INCOME--Securities transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on the accrual basis and includes, where applicable, amortization or accretion of the premium or discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. OTHER--Expenses directly attributable to a Fund are charged to the Fund, while expenses which are attributable to more than one Fund of the Trust are allocated among the respective Funds based on their relative net assets or another appropriate basis. Income, expenses, and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis, except that each class separately bears expenses related specifically to that class, such as distribution fees. DISTRIBUTIONS TO SHAREHOLDERS--Dividends from net investment income are declared daily and paid monthly and distributable net realized gains, if any, are declared and distributed at least annually. Dividends from net investment income and from net realized gains are determined in accordance with 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. FEDERAL TAXES--It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax return to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has not completed their analysis on whether the adoption of FIN 48 will have an impact to the financial statements. (3) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISORY FEE--The Advisor receives for its services an annual investment advisory fee based on a percentage of each Fund's average daily net assets, as follows: 0.40% for the Prime Money Market Fund, Institutional Money Market Fund, Institutional Government Money Market Fund, Government Money Market Fund, U.S. Treasury Money Market Fund, and Michigan Municipal Money Market Fund and 0.50% for the Municipal Money Market Fund. ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third"), an affiliate of the Advisor, serves as the Trust's administrator. The administrator 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. Under the terms of the administration agreement, Fifth Third's fees are computed as a percentage of the average daily net assets of the Trust for the period. Administration fees are computed at 0.20% of the first $1 billion of the average daily net assets of the Trust, 0.18% of the average daily net assets of the Trust between $1 billion and $2 billion, 0.17% of the average daily net assets of the Trust between $2 billion and $15 billion, and 0.15% of more than $15 billion of the average daily net assets of the Trust. In addition, there shall be an annual flat fee per class in excess of four classes per Fund and each Fund is subject to an annual minimum fee. Pursuant to a separate agreement with Fifth Third, BISYS Fund Services Limited Partnership ("BISYS"), a wholly owned subsidiary of The BISYS Group, Inc., performs sub-administrative services on behalf of the Trust including providing certain administrative personnel and services necessary to operate the Trust, for which it received $1,624,847 in fees from Fifth Third during the year ended July 31, 2006, computed as a percentage (up to 0.0145%) of the average daily net assets of the Trust, subject to certain minimums and reimbursement of certain expenses. 33 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- Under a Compliance Services Agreement between the Funds', Fifth Third, and BISYS (the "CCO Agreement"), BISYS makes an employee available to serve as the Funds' Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS also provides infrastructure and support in implementing the written policies and procedures comprising the Funds' compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the Funds pay BISYS $200,000 per year subject to adjustment annually by the percentage increase in consumer prices for services as measured by the United States Consumer Price Index. BISYS pays the salary and other compensation earned by any such individuals as employees of BISYS. The Advisor and Administrator have entered into an expense limitation agreement with the Funds. Under the terms of this agreement, to the extent that ordinary operating expenses incurred by a Fund in any fiscal year exceed the expense limit for the Fund, such excess amount will be the liability of the Advisor and Administrator. If the operating expenses are less than the expense limit for the Fund, the Advisor and Administrator shall be entitled to reimbursement of the fees waived or reduced to the extent that the operating expenses and the amount reimbursed do not exceed such expense limit for the Fund. Such reimbursement shall be paid only while the expense limitation agreement is in effect and only if such amount paid, together with all other amounts reimbursed under this plan in the fiscal year, does not cause the Fund to exceed the expense limit. For the period from November 29, 2005 through July 31, 2006, the expense limits and the cumulative reimbursement that may potentially be made by the Funds is as follows (Amounts in thousands):
INSTITUTIONAL MICHIGAN INSTITUTIONAL GOVERNMENT U.S. TREASURY MUNICIPAL MUNICIPAL PRIME MONEY MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MARKET FUND FUND FUND FUND FUND FUND ----------- ----------- ------------ ------------ ------------ ------------ Institutional Shares 0.54% 0.21% 0.21% 0.21% 0.54% 0.21% Class A Shares 0.79% NA NA NA 0.79% 0.46% Class B Shares 1.54% NA NA NA NA NA Class C Shares 1.54% NA NA NA NA NA Advisor Shares 1.04% NA NA NA NA NA Select Shares NA 0.29% 0.29% 0.29% NA 0.29% Preferred Shares NA 0.36% 0.36% 0.36% NA 0.36% Trust Shares NA 0.46% 0.46% 0.46% NA 0.46% Amount subject to reimbursement expiring on November 28, 2006. $1,011 $4,275 $1,920 $3,468 $162 $931
Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining competitive expense ratios. DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor, Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's principal distributor. Under the terms of the Plan, the Funds will compensate the principal distributor from the net assets of the Funds' Class A Shares, Class B Shares, Class C Shares and Advisor Shares to finance activities intended to result in the sales of each Funds' shares. The Plan provides that the Funds may incur distribution services fees up to 0.25% of the average daily net assets for Class A Shares, up to 1.00% of the average daily net assets for Class B Shares, up to 0.75% of the average daily net assets for Class C Shares and up to 0.50% of the average daily net assets for Advisor Shares, annually, to compensate the distributor. ADMINISTRATIVE SERVICES FEE--The Trust has approved an Administrative Services Agreement with Fifth Third Funds Distributor, Inc. with respect to Class C Shares, Select Shares, Preferred Shares and Trust Shares. Under the Agreement, the Funds may make payments to the distributor and other financial institutions, which may include affiliates of the advisor, of up to 0.25% of the average daily net assets for Class C Shares, up to 0.08% of the average daily net assets for Select Shares, up to 0.15% of the average daily net assets for Preferred Shares and up to 0.25% of the average daily net assets for Trust Shares in exchange for certain administrative services fees for shareholders and for the maintenance of shareholder accounts. 34 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- TRANSFER AND DIVIDEND DISBURSING AGENT--BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), a wholly owned subsidiary of The BISYS Group, Inc., serves as transfer and dividend disbursing agent. Pursuant to a separate agreement, BISYS Ohio retained the Advisor to perform certain services for the Trust and each investment portfolio of the Trust, for which the Advisor receives a fee of 0.005% from BISYS Ohio computed as a percentage of the average daily net assets of each Fund. Fifth Third received $594,531 in fees for its services during the year ended July 31, 2006.Transfer agent fees are computed at 0.0195% of the average daily net assets of each Fund up to $700 million, 0.017% of the average daily net assets of each Fund between $700 million and $1 billion, 0.0155% of the average daily assets of each Fund between $1 billion and $2 billion and 0.013% of more than $2 billion of the average net assets of the Prime Money Market Fund, Government Money Market Fund, Michigan Municipal Money Market Fund and the Municipal Money Market Fund. For the Institutional Money Market Fund, Institutional Government Money Market Fund and the U.S. Treasury Money Market Fund, transfer agent fees are computed at 0.0185% of the average daily net assets of each Fund up to $700 million, 0.017% of the average daily net assets of each Fund between $700 million and $1 billion, 0.0155% of the average daily net assets of each Fund between $1 billion and $2 billion and 0.0125% of more than $2 billion of the average daily net assets of each Fund. In addition, there is an annual flat fee for each additional class of shares per Fund. ACCOUNTING AND CUSTODY FEES--Fifth Third maintains the Funds' accounting records and is the Funds' custodian for which it receives a fee based on the level of each Fund's average daily net assets for the period, plus out-of-pocket expenses. Accounting fees are computed at 0.02% of the average daily net assets of each Fund up to $500 million, 0.015% of the average daily net assets of each Fund between $500 million and $1 billion, and 0.01% of more than $1 billion of the average daily net assets of each Fund. In addition, there shall be an annual flat fee for each additional class of shares per Fund and each Fund is subject to an annual minimum fee. Pursuant to a separate agreement with Fifth Third, BISYS Ohio performs sub-accounting services on behalf of the Trust, for which it received $2,827,627 in fees from Fifth Third during the year ended July 31, 2006, computed as a percentage (up to 0.015%) of the average daily net assets of each Fund including annual fees for additional classes of shares per Fund plus reimbursement of certain fees and other miscellaneous expenses. Custody fees are computed at 0.01% of the average daily net assets of each Fund up to $25 million, 0.0075% of the average daily net assets of each Fund between $25 million and $100 million, 0.005% of the average daily net assets of each Fund between $100 million and $200 million, and 0.0025% of more than $200 million of the average daily net assets of each Fund plus transaction charges. Certain officers of the Trust are affiliated with the above companies, but are not paid any fees directly by the Trust for serving as officers of the Trust. (4) LINE OF CREDIT The Trust participates in a credit agreement with Citibank N.A. Under the terms of the agreement, the Trust may borrow up to $75 million. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Citibank N.A. receives an annual facility fee of 0.09% on the aggregate principal amount committed under the agreement for providing the Line of Credit. Each Fund pays a pro-rata portion of this facility fee, plus any interest on amounts borrowed. There were no borrowings against the line of credit at the end of the year. 35 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- (5) FEDERAL TAX INFORMATION The tax character of distributions paid during the fiscal year ended July 31, 2006 was as follows (Amounts in thousands):
ORDINARY TOTAL INCOME TAX EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID ------------- ------------- ------------- Prime Money Market Fund $47,592 $ -- $47,592 Institutional Money Market Fund 54,536 -- 54,536 Institutional Government Money Market Fund 24,332 -- 24,332 Government Money Market Fund 7,859 -- 7,859 U.S. Treasury Money Market Fund 45,276 -- 45,276 Michigan Municipal Money Market Fund --^ 4,472 4,472 Municipal Money Market Fund -- 5,805 5,805
The tax character of distributions paid during the fiscal year ended July 31, 2005 was as follows (Amounts in thousands):
ORDINARY TOTAL INCOME TAX EXEMPT DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PAID ------------- ------------- ------------- Prime Money Market Fund $24,392 $ -- $24,392 Institutional Money Market Fund 24,208 -- 24,208 Institutional Government Money Market Fund 11,180 -- 11,180 Government Money Market Fund 4,101 -- 4,101 U.S. Treasury Money Market Fund 25,567 -- 25,567 Michigan Municipal Money Market Fund --^ 2,483 2,483 Municipal Money Market Fund -- 2,613 2,613
As of July 31, 2006, the components of accumulated earnings/(deficit) on a tax basis were as follows (Amounts in thousands):
ACCUMULATED TOTAL UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND ACCUMULATED TAX EXEMPT ORDINARY DISTRIBUTIONS OTHER EARNINGS/ INCOME INCOME PAYABLE LOSSES (DEFICIT) ------------- ------------- ------------- ----------- ----------- Prime Money Market Fund $ -- $4,242 $(4,160) $ (92) $ (10) Institutional Money Market Fund -- 6,458 (6,429) (1) 28 Institutional Government Money Market Fund -- 2,734 (2,723) --^ 11 Government Money Market Fund -- 887 (823) (2) 62 U.S. Treasury Money Market Fund -- 4,738 (4,737) (142) (141) Michigan Municipal Money Market Fund 494 -- (500) -- (6) Municipal Money Market Fund 803 -- (803) (3) (3)
As of July 31, 2006, the following Funds have net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by Treasury regulations (Amounts in thousands):
EXPIRATION YEAR TOTAL ------------------------------------------------------------------------- 2008 2009 2010 2011 2014 ---- ---- ---- ---- ---- Prime Money Market Fund $-- $-- $-- $-- $92 $ 92 Institutional Money Market Fund -- -- -- -- 1 1 Institutional Government Money Market Fund -- -- -- -- --^ --^ Government Money Market Fund 2 -- -- -- -- 2 U.S. Treasury Money Market Fund 83 59 -- -- -- 142 Municipal Money Market Fund -- -- 3 --^ -- 3
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, 2006, the Funds deferred to August 1, 2006 post October capital losses (Amounts in thousands): CAPITAL LOSSES ------- Government Money Market $--^ ^ Represents fewer than five hundred dollars. (6) CONCENTRATION OF CREDIT RISK The Michigan Municipal Money Market Fund invests a substantial portion of its assets in debt obligations issued by the State of Michigan, and their political subdivisions, agencies and public authorities. The Fund is more susceptible to factors adversely affecting issuers of Michigan municipal securities than a fund that is not concentrated in these issuers to the same extent. 36 This page intentionally left blank. 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 FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND CLASS B SHARES Year ended 7/31/02 $1.00 0.01 -- (0.01) Year ended 7/31/03 $1.00 --^ --^ --^ Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND CLASS C SHARES 5/5/02(b) to 7/31/02 $1.00 --^ -- --^ Year ended 7/31/03 $1.00 --^ --^ --^ Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND ADVISOR SHARES 10/29/01(b) to 7/31/02 $1.00 0.01 -- (0.01) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES NET EXPENSES NET ASSET ASSETS, TO INVESTMENT TO VALUE, END OF AVERAGE INCOME AVERAGE END OF TOTAL PERIOD NET TO AVERAGE NET PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a) ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 2.02% $1,732,204 0.55% 1.86% 0.65% Year ended 7/31/03 $1.00 1.02% $1,565,589 0.54% 1.02% 0.65% Year ended 7/31/04 $1.00 0.65% $1,064,622 0.54% 0.64% 0.66% Year ended 7/31/05 $1.00 1.91% $ 958,735 0.54% 1.86% 0.65% Year ended 7/31/06 $1.00 3.97% $ 563,551 0.54% 3.81% 0.66% ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 1.77% $ 447,556 0.80% 1.71% 0.89% Year ended 7/31/03 $1.00 0.76% $ 436,687 0.79% 0.77% 0.90% Year ended 7/31/04 $1.00 0.40% $ 387,424 0.79% 0.40% 0.91% Year ended 7/31/05 $1.00 1.66% $ 464,391 0.79% 1.67% 0.90% Year ended 7/31/06 $1.00 3.71% $ 455,183 0.79% 3.65% 0.91% ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND CLASS B SHARES Year ended 7/31/02 $1.00 1.00% $ 1,893 1.55% 0.91% 1.64% Year ended 7/31/03 $1.00 0.32% $ 2,426 1.22% 0.33% 1.65% Year ended 7/31/04 $1.00 0.24% $ 1,651 0.95% 0.23% 1.66% Year ended 7/31/05 $1.00 0.95% $ 1,340 1.51% 1.14% 1.66% Year ended 7/31/06 $1.00 2.94% $ 1,216 1.54% 2.84% 1.66% ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND CLASS C SHARES 5/5/02(b) to 7/31/02 $1.00 0.19%* $ 60 1.54%** 0.48%** 1.71%** Year ended 7/31/03 $1.00 0.32% $ 154 1.14% 0.32% 1.65% Year ended 7/31/04 $1.00 0.23% $ 2,843 0.98% 0.25% 1.66% Year ended 7/31/05 $1.00 0.95% $ 1,474 1.46% 0.85% 1.65% Year ended 7/31/06 $1.00 2.93% $ 879 1.54% 2.80% 1.66% ------------------------------------------------------------------------------------------------------------------------------------ PRIME MONEY MARKET FUND ADVISOR SHARES 10/29/01(b) to 7/31/02 $1.00 1.02%* $ 2 0.89%** 1.23%** 0.96%** Year ended 7/31/03 $1.00 0.53% $ 62 1.02% 0.46% 1.15% Year ended 7/31/04 $1.00 0.24% $ 36 0.96% 0.26% 1.16% Year ended 7/31/05 $1.00 1.40% $ 42 1.04% 1.28% 1.15% Year ended 7/31/06 $1.00 3.45% $ 1,628 1.04% 3.71% 1.17% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 2.31% $ 189,530 0.22% 2.11% 0.65% Year ended 7/31/03 $1.00 1.35% $ 766,023 0.22% 1.24% 0.65% Year ended 7/31/04 $1.00 0.98% $1,049,608 0.22% 0.98% 0.65% Year ended 7/31/05 $1.00 2.24% $1,077,260 0.21% 2.24% 0.65% Year ended 7/31/06 $1.00 4.30% $1,263,609 0.21% 4.25% 0.65% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.70%* $ 13,267 0.30%** 0.92%** 0.73%** Year ended 7/31/05 $1.00 2.15% $ 23,924 0.29% 2.23% 0.73% Year ended 7/31/06 $1.00 4.22% $ 35,579 0.29% 4.16% 0.73% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.65%* $ 27,206 0.37%** 0.85%** 0.80%** Year ended 7/31/05 $1.00 2.08% $ 23,178 0.36% 1.99% 0.80% Year ended 7/31/06 $1.00 4.15% $ 98,263 0.36% 4.21% 0.81% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.57%* $ 17,591 0.47%** 0.75%** 0.90%** Year ended 7/31/05 $1.00 1.98% $ 25,047 0.46% 2.01% 0.90% Year ended 7/31/06 $1.00 4.04% $ 160,782 0.46% 4.18% 0.91% ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights and notes to financial statements. 38-39 spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET REALIZED NET ASSET AND UNREALIZED LESS VALUE, NET GAINS/ DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) FROM TO OF PERIOD INCOME INVESTMENTS SHAREHOLDERS ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 -- (0.04) ------------------------------------------------------------------------------------------------------------------------------------ GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ GOVERNMENT MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.02 -- (0.02) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.02 --^ (0.02) Year ended 7/31/06 $1.00 0.04 --^ (0.04) ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES NET EXPENSES NET ASSET ASSETS, TO INVESTMENT TO VALUE, END OF AVERAGE INCOME AVERAGE END OF TOTAL PERIOD NET TO AVERAGE NET PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a) ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 2.05% $ 425,092 0.41% 2.03% 0.64% Year ended 7/31/03 $1.00 1.07% $ 616,999 0.40% 1.04% 0.65% Year ended 7/31/04 $1.00 0.86% $ 223,852 0.31% 0.79% 0.66% Year ended 7/31/05 $1.00 2.17% $ 264,707 0.21% 2.16% 0.66% Year ended 7/31/06 $1.00 4.23% $ 304,332 0.21% 4.24% 0.66% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.65%* $ 5,202 0.30%** 0.82%** 0.75%** Year ended 7/31/05 $1.00 2.09% $ 2,176 0.30% 1.83% 0.74% Year ended 7/31/06 $1.00 4.14% $ 6,337 0.29% 4.22% 0.75% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.59%* $ 276,373 0.37%** 0.75%** 0.82%** Year ended 7/31/05 $1.00 2.02% $ 228,555 0.36% 1.96% 0.81% Year ended 7/31/06 $1.00 4.07% $ 190,260 0.36% 3.98% 0.82% ------------------------------------------------------------------------------------------------------------------------------------ INSTITUTIONAL GOVERNMENT MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.51%* $ 70,270 0.47%** 0.66%** 0.92%** Year ended 7/31/05 $1.00 1.92% $ 120,743 0.46% 1.96% 0.91% Year ended 7/31/06 $1.00 3.97% $ 96,003 0.46% 3.85% 0.92% ------------------------------------------------------------------------------------------------------------------------------------ GOVERNMENT MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 1.79% $ 279,059 0.65% 1.75% 0.69% Year ended 7/31/03 $1.00 0.92% $ 275,107 0.61% 0.84% 0.66% Year ended 7/31/04 $1.00 0.47% $ 173,865 0.62% 0.47% 0.67% Year ended 7/31/05 $1.00 1.75% $ 144,028 0.58% 1.70% 0.67% Year ended 7/31/06 $1.00 3.79% $ 127,537 0.58% 3.73% 0.68% ------------------------------------------------------------------------------------------------------------------------------------ GOVERNMENT MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 1.58% $ 270,062 0.85% 1.57% 0.94% Year ended 7/31/03 $1.00 0.71% $ 177,390 0.81% 0.66% 0.91% Year ended 7/31/04 $1.00 0.27% $ 110,153 0.82% 0.27% 0.92% Year ended 7/31/05 $1.00 1.55% $ 95,375 0.79% 1.53% 0.92% Year ended 7/31/06 $1.00 3.61% $ 72,896 0.75% 3.53% 0.93% ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 1.92% $1,143,352 0.41% 1.88% 0.64% Year ended 7/31/03 $1.00 1.02% $1,644,905 0.40% 0.98% 0.65% Year ended 7/31/04 $1.00 0.80% $ 399,195 0.30% 0.74% 0.65% Year ended 7/31/05 $1.00 2.08% $ 295,584 0.21% 2.01% 0.65% Year ended 7/31/06 $1.00 4.13% $ 386,757 0.21% 4.11% 0.65% ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.59%* $ 93,233 0.30%** 0.76%** 0.73%** Year ended 7/31/05 $1.00 2.00% $ 83,171 0.29% 2.01% 0.73% Year ended 7/31/06 $1.00 4.05% $ 61,992 0.29% 3.95% 0.73% ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.54%* $1,102,963 0.37%** 0.69%** 0.80%** Year ended 7/31/05 $1.00 1.93% $ 766,688 0.36% 1.85% 0.80% Year ended 7/31/06 $1.00 3.98% $ 625,196 0.36% 3.85% 0.80% ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.46%* $ 165,402 0.47%** 0.58%** 0.90%** Year ended 7/31/05 $1.00 1.83% $ 118,018 0.46% 1.78% 0.90% Year ended 7/31/06 $1.00 3.87% $ 113,124 0.46% 3.79% 0.90% ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial highlights and notes to financial statements. 40-41 spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
NET REALIZED NET ASSET AND UNREALIZED LESS VALUE, NET GAINS/ DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) FROM TO OF PERIOD INCOME INVESTMENTS SHAREHOLDERS --------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.01 -- (0.01) Year ended 7/31/03 $1.00 0.01 -- (0.01) Year ended 7/31/04 $1.00 0.01 -- (0.01) Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) --------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 0.01 -- (0.01) Year ended 7/31/03 $1.00 0.01 -- (0.01) Year ended 7/31/04 $1.00 --^ -- --^ Year ended 7/31/05 $1.00 0.01 --^ (0.01) Year ended 7/31/06 $1.00 0.02 --^ (0.02) --------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 0.01 -- (0.01) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 0.01 --^ (0.01) Year ended 7/31/05 $1.00 0.02 -- (0.02) Year ended 7/31/06 $1.00 0.03 --^ (0.03) --------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 0.01 -- (0.01) Year ended 7/31/03 $1.00 0.01 --^ (0.01) Year ended 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) --------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) --------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) --------------------------------------------------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 --^ --^ --^ Year ended 7/31/05 $1.00 0.01 -- (0.01) Year ended 7/31/06 $1.00 0.03 --^ (0.03) --------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------- RATIOS OF RATIOS OF RATIOS OF NET EXPENSES NET EXPENSES NET ASSET ASSETS, TO INVESTMENT TO VALUE, END OF AVERAGE INCOME AVERAGE END OF TOTAL PERIOD NET TO AVERAGE NET PERIOD RETURN (000 'S) ASSETS NET ASSETS ASSETS (a) ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 1.41% $ 292,618 0.54% 1.41% 0.65% Year ended 7/31/03 $1.00 0.88% $ 247,805 0.54% 0.88% 0.67% Year ended 7/31/04 $1.00 0.59% $ 197,225 0.54% 0.59% 0.67% Year ended 7/31/05 $1.00 1.45% $ 164,404 0.54% 1.42% 0.67% Year ended 7/31/06 $1.00 2.65% $ 189,695 0.54% 2.63% 0.67% ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 1.25% $ 177 0.70% 1.26% 0.91% Year ended 7/31/03 $1.00 0.78% $ 19 0.64% 0.90% 0.92% Year ended 7/31/04 $1.00 0.49% $ 18 0.64% 0.48% 0.91% Year ended 7/31/05 $1.00 1.30% $ 110 0.69% 1.45% 0.93% Year ended 7/31/06 $1.00 2.48% $ 1,686 0.70% 2.77% 0.93% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET FUND INSTITUTIONAL SHARES Year ended 7/31/02 $1.00 1.45% $ 249,280 0.34% 1.43% 0.77% Year ended 7/31/03 $1.00 0.91% $ 199,439 0.42% 0.92% 0.78% Year ended 7/31/04 $1.00 0.68% $ 136,302 0.38% 0.67% 0.80% Year ended 7/31/05 $1.00 1.55% $ 187,829 0.38% 1.55% 0.80% Year ended 7/31/06 $1.00 2.88% $ 214,995 0.25% 2.88% 0.81% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET FUND CLASS A SHARES Year ended 7/31/02 $1.00 1.38% $ 42,004 0.41% 1.35% 1.02% Year ended 7/31/03 $1.00 0.80% $ 53,079 0.52% 0.80% 1.03% Year ended 7/31/04 $1.00 0.43% $ 17,590 0.63% 0.42% 1.05% Year ended 7/31/05 $1.00 1.30% $ 25,516 0.63% 1.30% 1.06% Year ended 7/31/06 $1.00 2.62% $ 27,027 0.50% 2.62% 1.06% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET FUND SELECT SHARES 10/20/03(b) to 7/31/04 $1.00 0.47%* $ 863 0.46%** 0.62%** 0.91%** Year ended 7/31/05 $1.00 1.47% $ 86 0.46% 0.99% 0.89% Year ended 7/31/06 $1.00 2.80% $ 10,551 0.29% 3.23% 0.89% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET FUND PREFERRED SHARES 10/20/03(b) to 7/31/04 $1.00 0.42%* $ 637 0.53%** 0.55%** 0.98%** Year ended 7/31/05 $1.00 1.40% $ 36 0.53% 0.97% 0.97% Year ended 7/31/06 $1.00 2.73% $ 2,402 0.36% 3.27% 0.96% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL MONEY MARKET FUND TRUST SHARES 10/20/03(b) to 7/31/04 $1.00 0.34%* $ 244 0.63%** 0.44%** 1.06%** Year ended 7/31/05 $1.00 1.30% $ 8,625 0.63% 1.70% 1.04% Year ended 7/31/06 $1.00 2.62% $ 26,028 0.49% 2.81% 1.06% ------------------------------------------------------------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS (a) During various periods, certain fees were reduced. The ratios shown do not include these fee reductions. (b) Reflects date of commencement of operations. ^ Amount is less than $0.005. * Not annualized. ** Annualized. See notes to financial statements 42 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Shareholders and Trustees of Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fifth Third Prime Money Market Fund, Fifth Third Institutional Money Market Fund, Fifth Third Institutional Government Money Market Fund, Fifth Third Government Money Market Fund, Fifth Third U.S. Treasury Money Market Fund, Fifth Third Michigan Municipal Money Market Fund and Fifth Third Municipal Money Market Fund (separate portfolios constituting Fifth Third Funds, hereafter referred to as the "Funds") at July 31, 2006, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods in the five years then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP September 22, 2006 44 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED): -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT ^ The Trustees and Officers of the Funds, their date of birth, 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 3435 Stelzer Road, Columbus, Ohio 43219-3035 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 DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ David J. Durham Trustee Indefinite, Chairman of Clipper Products, Inc., 36 None Date of Birth: 5/10/1945 June 2001- a wholesale distributor, 2005-Present. Present Chairman of Norris Products Corp., a wholesale distributor, 2005-Present. President and Chief Executive Officer of Clipper Products, Inc., 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, Consultant, Duke Energy, 36 Trustee for Date of Birth: 9/11/1949 March 2006-Present. President, Cinergy Hanover College. 2001-Present Foundation, November 2001-Present. National Underground President, Cinergy Corp., Freedom Center, Cincinnati Gas & Electric Co., The Cincinnati Zoo, The Union Light Heat & Power Co., The Ohio Arts Council, July 2000-October 2001. The Cincinnati Parks Foundation, and Playhouse in the Park. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 36 Printing Date of Birth: 12/5/1944 October Present. Business Industries of 2001-Present Management Consultant, April America: Web Offset 2000-February 2002. Assoc., Director; Master Printers of America, Director. David J. Gruber Trustee Indefinite, Resources Global Professionals, 36 None Date of Birth: 8/19/1963 December Project Professional, December 2003-Present 2004-Present. 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. INTERESTED TRUSTEE Edward Burke Carey* Chairman- Indefinite, Carey Realty Investments, Inc. 36 The Foundation Date of Birth: 7/2/1945 Board of January (real estate development and of the Catholic Trustees 1989-Present consulting), President, 1990-Present. Diocese of Columbus-Trustee, Canisius College-Trustee.
^ Additional disclosure can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. * Mr. Carey is treated by the Trust as an "interested person" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor. Mr. Carey is an "interested person" because of his past business transactions with Fifth Third Bank and its affiliates. 45 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 DATE OF BIRTH FUNDS SERVED DURING THE PAST 5 YEARS -------------------------------------------------------------------------------------------------------------------------- Bryan C. Haft President Indefinite, Employee of BISYS Fund Services Date of Birth: 1/23/1965 June Limited Partnership since 1992. 2005-Present Matthew A. Ebersbach Vice President Indefinite, Assistant Vice President of Fifth Date of Birth: 1/2/1970 March Third Bank since 2001 2006-Present Russell D. Ungerman Vice President Indefinite, Assistant Vice President of Fifth Date of Birth: 2/9/1971 September Third Bank since 1998. 2002-Present Rodney L. Ruehle Anti-Money Laundering Indefinite, Employee of BISYS Fund Services Date of Birth: 4/26/1968 and Chief Compliance Officer September Limited Partnership since August 1995. 2001-Present Alaina Metz Assistant Secretary Indefinite, Employee of BISYS Fund Services Date of Birth: 4/4/1967 September Limited Partnership since June 1995. 2004-Present Aaron J. Masek Treasurer Indefinite, Employee of BISYS Fund Services Date of Birth: 1/26/1974 November Limited Partnership since July 1996. 2005-Present Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund Services Date of Birth: 2/13/1962 and Assistant Treasurer September Limited Partnership since May 1995. 2001-Present
46 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED: -------------------------------------------------------------------------------- EXPENSE EXAMPLES 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, 2006 through July 31, 2006. 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.
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 ---------------------------------------------------------------------------------------------------------------------------- Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,021.80 $2.71 0.54% Class A Shares 1,000.00 1,020.60 3.96 0.79% Class B Shares 1,000.00 1,016.80 7.70 1.54% Class C Shares 1,000.00 1,016.80 7.70 1.54% Advisor Shares 1,000.00 1,019.30 5.21 1.04% Institutional Money Market Fund Institutional Shares 1,000.00 1,023.50 1.05 0.21% Select Shares 1,000.00 1,023.10 1.45 0.29% Preferred Shares 1,000.00 1,022.80 1.81 0.36% Trust Shares 1,000.00 1,022.30 2.31 0.46% Institutional Government Money Market Fund Institutional Shares 1,000.00 1,023.20 1.05 0.21% Select Shares 1,000.00 1,022.80 1.45 0.29% Preferred Shares 1,000.00 1,022.40 1.81 0.36% Trust Shares 1,000.00 1,021.90 2.31 0.46% Government Money Market Fund Institutional Shares 1,000.00 1,021.00 2.91 0.58% Class A Shares 1,000.00 1,020.20 3.71 0.74% U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,022.70 1.05 0.21% Select Shares 1,000.00 1,022.20 1.45 0.29% Preferred Shares 1,000.00 1,021.90 1.80 0.36% Trust Shares 1,000.00 1,021.40 2.31 0.46% Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,014.60 2.70 0.54% Class A Shares 1,000.00 1,013.80 3.50 0.70% Municipal Money Market Fund Institutional Shares 1,000.00 1,016.10 1.05 0.21% Class A Shares 1,000.00 1,014.80 2.30 0.46% Select Shares 1,000.00 1,015.70 1.45 0.29% Preferred Shares 1,000.00 1,015.30 1.80 0.36% Trust Shares 1,000.00 1,014.80 2.30 0.46%
* Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 47 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED: -------------------------------------------------------------------------------- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on each Fifth Third Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may however use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 ---------------------------------------------------------------------------------------------------------------------------- Prime Money Market Fund Institutional Shares $ 1,000.00 $ 1,022.12 $2.71 0.54% Class A Shares 1,000.00 1,020.88 3.96 0.79% Class B Shares 1,000.00 1,017.16 7.70 1.54% Class C Shares 1,000.00 1,017.16 7.70 1.54% Advisor Shares 1,000.00 1,019.64 5.21 1.04% Institutional Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Institutional Government Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Government Money Market Fund Institutional Shares 1,000.00 1,021.92 2.91 0.58% Class A Shares 1,000.00 1,021.12 3.71 0.74% U.S. Treasury Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46% Michigan Municipal Money Market Fund Institutional Shares 1,000.00 1,022.12 2.71 0.54% Class A Shares 1,000.00 1,021.32 3.51 0.70% Municipal Money Market Fund Institutional Shares 1,000.00 1,023.75 1.05 0.21% Class A Shares 1,000.00 1,022.51 2.31 0.46% Select Shares 1,000.00 1,023.36 1.45 0.29% Preferred Shares 1,000.00 1,023.01 1.81 0.36% Trust Shares 1,000.00 1,022.51 2.31 0.46%
* Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 48
ADDRESSES ------------------------------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds Money Market Mutual Funds 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------------------- Investment Advisor Fifth Third Asset Management, Inc. 38 Fountain Square Plaza Cincinnati, Ohio 45263 ------------------------------------------------------------------------------------------------------- Distributor Fifth Third Funds Distributor, Inc. 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------------------- Administrator, Accountant and Custodian Fifth Third Bank 38 Fountain Square Plaza Cincinnati, Ohio 45263 ------------------------------------------------------------------------------------------------------- Sub-Administrator BISYS Fund Services Limited Partnership 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------------------- Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc. and Sub-Accountant 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------------------- Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP 100 East Broad Street Suite 2100 Columbus, Ohio 43215 -------------------------------------------------------------------------------------------------------
Logo: Fifth Third Funds 9/06 AR-MMF-06 [LOGO] Fifth Third Funds STOCK AND BOND MUTUAL FUNDS ANNUAL REPORT TO SHAREHOLDERS ___________________ July 31, 2006 NOTICE OF DELIVERY OF PROSPECTUSES, SEMI-ANNUAL REPORTS AND ANNUAL REPORTS In order to reduce expenses of the Fifth Third Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Fifth Third Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-282-5706. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the Funds, which contains facts concerning the objectives and policies, management fees, expenses and other information. A description of the polices and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities and information regarding how the Funds voted relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-282-5706 or on the Securities and Exchange Commission's website at http://www.sec.gov. Schedules of Portfolio Investments for periods ending April 30 and October 31 are available, without charge, on the Securities and Exchange Commission's website at http://www.sec.gov. Fifth Third Asset Management, Inc. serves as Investment Advisor to the Funds and receives a fee for their services. The Fifth Third Funds are distributed by Fifth Third Funds Distributor, Inc. 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 Fund ................................................... 4 Mid Cap Growth Fund ..................................................... 6 Quality Growth Fund ..................................................... 8 Large Cap Core Fund ..................................................... 10 Equity Index Fund ....................................................... 12 Balanced Fund ........................................................... 14 Micro Cap Value Fund .................................................... 16 Small Cap Value Fund .................................................... 18 Multi Cap Value Fund .................................................... 20 Disciplined Large Cap Value Fund ........................................ 22 Fifth Third LifeModel Aggressive Fund SM ................................ 24 Fifth Third LifeModel Moderately Aggressive Fund SM ..................... 26 Fifth Third LifeModel Moderate Fund SM .................................. 28 Fifth Third LifeModel Moderately Conservative Fund SM ................... 30 Fifth Third LifeModel Conservative Fund SM .............................. 32 Strategic Income Fund ................................................... 34 Dividend Growth Fund .................................................... 36 Technology Fund ......................................................... 38 International Equity Fund ............................................... 40 High Yield Bond Fund .................................................... 42 Bond Fund ............................................................... 44 Intermediate Bond Fund .................................................. 46 Short Term Bond Fund .................................................... 48 U.S. Government Bond Fund ............................................... 50 Municipal Bond Fund ..................................................... 52 Intermediate Municipal Bond Fund ........................................ 54 Ohio Municipal Bond Fund ................................................ 56 Michigan Municipal Bond Fund ............................................ 58 Schedules of Portfolio Investments ...................................... 61 Notes to Schedules of Portfolio Investments ............................. 117 Statements of Assets and Liabilities .................................... 126 Statements of Operations ................................................ 131 Statements of Changes in Net Assets ..................................... 136 Notes to Financial Statements ........................................... 154 Financial Highlights .................................................... 166 Notes to Financial Highlights ........................................... 206 Report of Independent Registered Public Accounting Firm ................. 207 Supplemental Information ................................................ 208 OUR MESSAGE TO YOU -------------------------------------------------------------------------------- [LOGO] The 12-month period ending July 31, 2006, proved challenging for stock and bond investors alike. Nonetheless, we are pleased of the performance of the Fifth Third Funds. As for the issues faced by the financial markets during the period, two themes-- the relentless pressure of the Federal Reserve Board (the "Fed") to increase short-term interest rates and the surging price of crude oil--overshadowed all else. The Fed took its key fed funds rate from 3.25% at the beginning of the fiscal year to 5.25% by the end. Perhaps more importantly, the central bank's chairmanship turned over from Alan Greenspan to Ben Bernanke. Having guided the Fed quite adeptly since 1987, Mr. Greenspan's legacy seems as though it will be a hard act to follow for Mr. Bernanke. Shortly after the period's end, the Fed paused in its tightening cycle, but as Mr. Bernanke's tendencies remain relatively unknown, many are suspicious that the policymakers may not yet be done. Crude oil moved from $60 a barrel at the beginning of the fiscal year to nearly $75 barrel at its end--an increase of almost 25%. This ruthless rise in the price of black gold had the arguable effect of causing simultaneous inflationary and recessionary fears in the economy. A terrible 2005 hurricane season severely disrupted the U.S. energy infrastructure, although Mother Nature did bail us out with a warmer winter than normal. As for 2006, the first portion of hurricane season was relatively quiet, though it's still early. The combination of an active central bank and rising oil prices applied downward pressure on the returns of virtually all domestic financial markets. Among those posting subdued gains were the major domestic stock indices that many of our stock managers utilize. These broad indices generally recorded advances in the 5% range during the fiscal year. Interestingly, large cap stocks outperformed small cap equities for the first time in five years. In addition, there was a lag in growth stocks, which benefit from healthy expectations for economic and corporate earnings growth rates. The growth stock indices that we utilize underperformed the value indices by more than 9% for large cap stocks and around 4% for small cap stocks. Fixed income investments endured even tougher obstacles than stocks. With an active central bank pushing short-term rates higher--causing prices to move downward in an inverse fashion--few bonds performed well. Adding to the adverse conditions was a flattening of the yield curve, which occurs when short-term rates increase faster than long-term yields. Consider that while the Fed's overnight rate rose 2% during the period, short-term Treasury yields moved higher by about 1% and long-term yields moved higher by about 0.6%. Within this environment, the total returns of the major bond indices that our fund managers use fell within the 2% range. Compared to the year-over-year gain of 4.1% in the Consumer Price Index 1, such meager returns signaled a negative real return for bond investors--something none of us like to see. However, if the Fed plans to hold on further moves in the coming quarters, we are still optimistic that bond returns could take a turn for the better over the next 12-months. Further reinforcing our outlook was the significant degree to which the yield curve flattened, which indicates that the bond market is already anticipating Fed rate cuts some time in 2007. More broadly speaking, the fundamentals that drive financial markets over longer periods of time--fiscal policy, monetary policy, economic growth, corporate profit growth, bond yields and inflation--ended the year in an overall mixed fashion. Notable developments include: o The favorable 15% tax treatment for dividends and long-term capital gains was extended to 2010, a very positive development. o The Fed left its fed funds rate at 5.25% at its early August meeting conducted just after the end of our fiscal year. 1 o Gross Domestic Product 1 growth averaged 3.5%--consistent with its long-term average--during the 12-month period ended July 31,2006. o Double-digit gains in quarterly operating profit growth for the S&P 500(R) Index 1 reached 12 consecutive reporting periods in the second quarter of 2006. o In comparison to the start of the fiscal year longer term Treasury yields moved higher but ended the fiscal year below 5%, while corporate bond yields ended the period in a similar spot, relative to Treasuries. o The 4.1% year-over-year increase in consumer prices was cause for concern, but the Fed indicated it believes inflationary pressures will cool in the near term. Despite the challenges of the fiscal year, our fund managers stayed with their disciplines to produce competitive returns for you, our shareholders. We thank you for your continued confidence in the family of Fifth Third Funds. /s/Keith Wirtz Keith Wirtz, CFA Chief Investment Officer /s/John Augustine John Augustine, CFA Chief Investment Strategist The foregoing information and opinions are for general information only. Fifth Third Asset Management, Inc. does not guarantee the accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering of individual or personalized investment advice. -------------------------------------------------------------------------------- 1 TERMS AND DEFINITIONS -------------------------------------------------------------------------------- CONSUMER PRICE INDEX IS A MEASURE THAT EXAMINES THE WEIGHTED AVERAGE OF PRICES OF A BASKET OF CONSUMER GOODS AND SERVICES, SUCH AS TRANSPORTATION, FOOD AND MEDICAL CARE. GROSS DOMESTIC PRODUCT IS THE MONETARY VALUE OF ALL THE GOODS AND SERVICES PRO DUCED BY AN ECONOMY OVER A SPECIFIED PERIOD. IT INCLUDES CONSUMPTION, GOVERNMENT PURCHASES, INVESTMENTS, AND EXPORTS MINUS IMPORTS. THE STANDARD & POOR'S 500 STOCK INDEX ("S&P 500(R) 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 ABOVE INDICES DO NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, ALTHOUGH THEY CAN INVEST IN ITS UNDERLYING SECURITIES. 2 This page intentionally left blank. 3 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- SMALL CAP GROWTH FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Small Cap Growth Fund (Institutional Shares) advanced 2.71% on a net of fee basis, outgaining its benchmark, the Russell 2000(R) Growth Index, which returned 1.53%. The modest gains mask a volatile period which featured a drop early on, a sizable rally from late 2005 through early May and another large drop within the final months. A catalyst for the wild swings was the Fed, which raised its key interest rate a quarter point at each of its eight meetings during the period. This resulted in a short-term rate of 5.25%, a level that fueled some concerns that the Fed had gone too far in its efforts to tame inflation. Many investors turned defensive during the period's final stretch and opted for larger, more liquid stocks, which, in turn, dampened the performance of small cap equities. Against this backdrop, strong stock selection in the industrials and energy sectors lifted the Fund. More specifically, electrical equipment and transportation logistics positions aided the industrials group while oilfield equipment and services names boosted the energy position. Despite a minor underweight, relative to the benchmark, exploration and production outfits also bolstered returns from the energy sector.+ Elsewhere, a lack of exposure to the struggling media group within the consumer discretionary sector enhanced relative performance.+ Diminishing returns were holdings in the information technology (IT) sector, especially within the computers and peripherals and IT services groups, and an underweight stake in consumer staples, which rallied during the late-period flight to stability.+ Over the course of the period, the Fund's stake in the IT and consumer discretionary sectors was lightened with most of the proceeds directed into the industrials space.+ -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- SMALL CAPITALIZATION FUNDS TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE. HISTORICALLY, SMALLER COMPANIES' STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET VOLATILITY THAN LARGE COMPANY STOCKS ON AVERAGE. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares 2.71% 4.12% 7.23% $20,090 -------------------------------------------------------------------------------- Class A Shares* -2.63% 2.77% 6.42% $18,623 -------------------------------------------------------------------------------- Class B Shares** -2.76% 2.80% 6.14% $18,143 -------------------------------------------------------------------------------- Class C Shares** 1.75% 3.09% 6.15% $18,164 -------------------------------------------------------------------------------- Advisor Shares*** -1.11% 2.91% 6.32% $18,465 -------------------------------------------------------------------------------- Russell 2000(R) Growth Index 1 1.53% 4.23% 4.93% $16,177 -------------------------------------------------------------------------------- Lipper Small-Cap Growth Funds Average 1 0.30% 3.32% 7.95% $23,459 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. 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 SMALL CAP GROWTH FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT SMALL COMPANY GROWTH FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT SMALL COMPANY GROWTH INVESTMENT SHARES, WITH AN INCEPTION DATE OF DECEMBER 4, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE INCEPTION DATE FOR CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001. THE QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- Core Laboratories N.V. ................................................ 1.79% General Cable Corp..................................................... 1.70% Psychiatric Solutions, Inc............................................. 1.68% Bucyrus International, Inc............................................. 1.65% First Cash Financial Services, Inc..................................... 1.47% Huron Consulting Group, Inc............................................ 1.43% FormFactor, Inc........................................................ 1.41% NICE Systems, Ltd., ADR ............................................... 1.37% VCA Antech, Inc........................................................ 1.34% MWI Veterinary Supply, Inc............................................. 1.31% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 4 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- SMALL CAP GROWTH FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Small Lipper Small-Cap Cap Growth Fund Russell 2000(R) Growth Funds (Institutional Shares) Growth Index Average ---------------------- --------------- ---------------- 7/31/96 10000 10000 10000 10800 11293 11329 12/96 11377 11323 11285 11157 10136 10168 13167 11915 12005 15179 13931 14081 12/97 14556 12789 13175 15918 14309 14826 15183 13487 14351 11964 10471 11348 12/98 13660 12946 14091 12541 12729 13878 15022 14606 15913 14553 13888 16175 12/99 17482 18525 23078 18914 20245 26848 18669 18752 25217 19004 18007 25438 12/00 17415 14370 20976 14851 12185 17013 17020 14376 19988 13841 10339 15158 12/01 16700 13044 18751 17061 12788 18460 15097 10781 15883 12202 8461 12873 12/02 12525 9097 13556 12117 8744 13136 14138 10855 16096 15552 11992 17624 12/03 17592 13512 19904 17937 14267 20811 17822 14280 20651 16693 13422 19331 12/04 18655 15446 22079 17990 14391 20995 18454 14892 21853 19245 15833 23175 12/05 19520 16087 23537 22826 18398 26552 21130 17064 24746 7/31/06 20090 16177 23459 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 2000(R) Growth Index and the Lipper Small-Cap Growth Funds Average. The Russell 2000(R) Growth Index tracks the performance of common stocks that measure the performance of the securities found in the Russell 2000(R) universe with higher forecasted growth values. The Lipper Small-Cap Growth Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Growth Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 5 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MID CAP GROWTH FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Mid Cap Growth Fund (Institutional Shares) advanced 4.56% on a net of fee basis, topping its benchmark, the Russell MidCap(R) Growth Index, which gained 2.98%. Inflation fears, rising interest rates and an economic slowdown sent investors scurrying back to value stocks through the final few months of the period. Large-capitalization companies also benefited from the rush to stability, which reversed months of outperformance by small- and mid-cap stocks with solid growth characteristics. Market sentiment generally hinged on the Fed, which ratcheted up its key interest rate from 3.25% to 5.25% during the period. As the campaign wore on and new Fed chair Ben Bernanke assumed a vigilant position on inflation--economists generally believe that higher short-term interest rates soften inflationary pressures--some investors questioned whether the central bank had been too aggressive and was risking a significant economic slowdown. Within the Fund, the industrials, energy and materials sectors led the way. More specifically, industrial distribution and machinery stocks lifted the industrials group, oilfield equipment and services companies excelled in the energy sector and specialty metals accounted for the bulk of the gain from materials.+ Adding to performance relative to the benchmark was a lack of exposure to the media sector, which weighed heavily on the consumer discretionary sector.+ Semiconductor and computer peripheral stocks hindered the Fund's returns from the information technology (IT) sector while specialty retailers pulled down the consumer discretionary group. Further limiting relative gains was an absence of holdings within the diversified financial services industry, which did exceptionally well.+ Building on the period's strengths, the Fund broadened its stake in the industrials sector, with the addition of commercial services stocks, and the materials group. Conversely, profits were booked in the energy sector, particularly among exploration and production firms. In the consumer space, broader uncertainties prompted a shift from discretionary to staples stocks.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares 4.56% 2.75% 8.48% $22,575 -------------------------------------------------------------------------------- Class A Shares* -0.91% 1.45% 7.69% $20,980 -------------------------------------------------------------------------------- Class B Shares** -1.49% 1.37% 7.34% $20,307 -------------------------------------------------------------------------------- Class C Shares** 3.57% 1.73% 7.49% $20,587 -------------------------------------------------------------------------------- Advisor Shares*** 0.70% 1.59% 7.63% $20,860 -------------------------------------------------------------------------------- Russell MidCap(R) Growth Index 1 2.98% 5.46% 8.94% $23,552 -------------------------------------------------------------------------------- Lipper Mid-Cap Growth Funds Average 1 1.97% 2.95% 7.66% $21,694 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE MID CAP GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 24, 1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- WESCO International, Inc............................................... 1.82% T. Rowe Price Group, Inc............................................... 1.77% NII Holdings, Inc...................................................... 1.75% Alliance Data Systems Corp............................................. 1.73% National-Oilwell Varco, Inc............................................ 1.67% GlobalSantaFe Corp..................................................... 1.64% Corporate Executive Board Co........................................... 1.61% Herbalife Ltd.......................................................... 1.58% Cognizant Technology Solutions Corp.................................... 1.54% Cytyc Corp............................................................. 1.53% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 6 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MID CAP GROWTH FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Mid Russell Lipper Mid-Cap Cap Growth Fund MidCap(R) Growth Funds (Institutional Shares) Growth Index Average ---------------------- --------------- ---------------- 7/31/96 10000 10000 10000 11359 11210 11284 12/96 11987 11534 11443 11546 11113 10668 13408 12749 12335 15696 14533 14185 12/97 15900 14134 13671 17197 15821 15398 15967 15811 15377 13833 13171 12545 12/98 16453 16658 15696 15704 17228 15907 17456 19022 17636 15640 18070 17200 12/99 19261 25203 23823 21803 30527 27887 21020 28266 26129 22756 28979 27706 12/00 20595 22242 22610 17110 16663 17697 20308 19359 19808 15701 13977 15060 12/01 19301 17760 18018 18856 17446 17712 15381 14261 15240 12607 11811 12612 12/02 13428 12893 13194 13078 12891 12929 15570 15309 15171 16391 16405 15998 12/03 18466 18400 17830 18977 19289 18609 18870 19492 18711 17765 18648 17803 12/04 20001 21248 20172 19314 20893 19553 20594 21610 20200 21725 23025 21460 12/05 22261 23818 22118 24962 25631 24183 23557 24428 22722 7/31/06 22575 23552 21694 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell MidCap(R) Growth Index and the Lipper Mid-Cap Growth Funds Average. The Russell MidCap(R) Growth Index measures the performance of those Russell mid cap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000(R) Growth Index. The Lipper Mid-Cap Growth Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell MidCap(R) Growth Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Mid-Cap Growth Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 7 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- QUALITY GROWTH FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Quality Growth Fund (Institutional Shares) decreased 4.10% on a net of fee basis, underperforming its benchmark, the Russell 1000(R) Growth Index, which lost 0.76%. Despite a continued sound economy and strong corporate earnings growth, the market flocked to defensive, slower growth companies through the final three months of the period. Fears that inflation had accelerated more than expected fueled the shift, which was magnified by the Fed's assertion that it needed to keep raising interest rates to hold price pressures at bay. Caught in the crosswinds, stocks of some of the faster growth companies in the Fund declined on concerns about the sustainability of future earnings growth. Modestly overweight positions, relative to the benchmark, in the information technology (IT) and consumer discretionary sectors contributed to the Fund's decline. Although the Fund's IT investments were focused on companies with solid long-term prospects in the semiconductor and electronics industries, the stocks dropped amid investors' aversion to anything perceived as economically sensitive. Similarly, do-it-yourself home improvement retailers and casino holdings weighed on the Fund's consumer discretionary stake.+ An underweight stake in the consumer staples space hampered relative performance as well. The sector is filled with companies that have modest expectations for growth and a low degree of economic sensitivity--the type of holdings that led the market through the closing months despite relatively high valuations.+ An overweight stake in the financial services sector provided a lift. Strong merger and acquisition activity aided capital market companies early and the Fund later benefited from its rotation into large diversified banks. In addition, strong performance from select biotechnology and healthcare services firms generated solid healthcare sector returns.+ Amid broad expectations for slower--but still positive-- economic and earnings growth rates, the Fund ended the period with a renewed focus on company fundamentals. This emphasis stressed strong balance sheets, healthy cash flow levels and solid earnings growth that is sustainable through periods of moderate growth. In addition, companies that serve vibrant market niches held appeal, provided they were selling at reasonable valuations.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares -4.10% -2.58% 6.31% $18,446 -------------------------------------------------------------------------------- Class A Shares* -9.06% -3.81% 5.57% $17,190 -------------------------------------------------------------------------------- Class B Shares** -9.77% -3.92% 5.21% $16,616 -------------------------------------------------------------------------------- Class C Shares** -5.03% -3.55% 5.37% $16,874 -------------------------------------------------------------------------------- Advisor Shares*** -7.66% -3.70% 5.50% $17,078 -------------------------------------------------------------------------------- Russell 1000(R) Growth Index 1 -0.76% -0.64% 5.86% $17,667 -------------------------------------------------------------------------------- S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405 -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average 1 3.77% 1.40% 7.18% $20,548 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE QUALITY GROWTH FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- CVS Corp............................................................... 3.66% Gilead Sciences, Inc................................................... 3.50% Pharmaceutical Product Development..................................... 3.23% Cisco Systems, Inc..................................................... 2.81% Caremark Rx, Inc....................................................... 2.70% Best Buy Co., Inc...................................................... 2.56% Bank of America Corp................................................... 2.43% Genzyme Corp........................................................... 2.10% Marriott International, Inc., Class A.................................. 2.07% First Data Corp........................................................ 1.95% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 8 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- QUALITY GROWTH FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Quality Growth Fund Russell 1000(R) S&P 500(R) Lipper Large-Cap (Institutional Shares) Growth Index Index Core Funds Average ---------------------- --------------- ---------------- -------------------- 7/31/96 10000 10000 10000 10000 11034 11005 10785 10802 12/96 11842 11670 11684 11555 11877 11732 11998 11690 14267 13951 14090 13539 15318 15000 15146 14675 12/97 15714 15228 15580 14875 17583 17535 17752 16726 17583 18331 18341 17084 15952 16666 16521 15148 12/98 20453 21122 20036 18289 21158 22464 21034 18969 22465 23329 22514 20293 21807 22474 21112 18970 12/99 25333 28125 24250 21801 27164 30129 24806 22610 26684 29316 24147 22063 26194 27739 23913 22106 12/00 24366 21818 22043 20557 20259 17258 19431 18129 21408 18711 20568 19114 17620 15079 17550 16230 12/01 21014 17362 19425 18000 20462 16913 19479 17982 16424 13755 16871 15674 13384 11685 13958 13147 12/02 14183 12521 15134 14041 13701 12387 14657 13538 15873 14160 16912 15454 16695 14714 17360 15823 12/03 18632 16246 19472 17631 18691 16374 19802 17860 18445 16691 20142 18055 17000 15819 19766 17600 12/04 18468 17269 21590 19157 17551 16564 21126 18772 18222 16972 21415 19014 19022 17653 22187 19750 12/05 19623 18178 22649 20227 20364 18741 23602 21043 19222 18010 23262 20552 7/31/06 18446 17667 23405 20548
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 1000(R) Growth Index, the S&P 500(R) Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Growth Index measures the performance of 1,000 securities found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Growth Index and the S&P 500(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 9 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- LARGE CAP CORE FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Large Cap Core Fund (Institutional Shares) advanced 6.12% on a net of fee basis, outperforming its benchmark, the S&P 500 Index, which advanced 5.38%. The results were indicative of the performance the quantitative mathematical model used to select stocks for the Fund. The model, which provides an objective and balanced approach to evaluating stocks, consists of four broad factor groups-- sentiment, valuation, earnings quality and capital discipline. The diverse factors employed in the model help ensure that it--and the Fund--performs effectively in a variety of market conditions. This was especially important during the reporting period as the market rotated between two dramatically different environments. High energy prices and inflation concerns weighed heavily on the market during the first three months of the period and again over the final three months. Such conditions prompted a shift from economically sensitive sectors into lower risk stocks with more reasonable valuations. Since valuation factors are well represented in the model, the Fund more than held its own during these periods. During the intermediate six months of the period, strong industrial data, stabilizing energy prices and strong earnings reports fueled investor optimism. During this phase, stocks with positive earnings revisions outperformed, and as a result of the sentiment factors in the model, the Fund was more than competitive against its benchmark. On an industry basis, overweight positions, relative to the benchmark, in integrated oil companies, diversified financial service providers and railroads boosted returns, as did an underweight exposure to the slumping Internet software and services group.+ Positions that diminished results included an underweight stake in the telecommunications services sector, which thrived through the closing months of the period despite high valuations, and an overweight in industrials, which led the market early on before slumping with other economically sensitive groups.+ Generally, sector weightings don't vary much from the benchmark, but stock selection within a group can generate a significant difference. Standouts that enhanced returns during the past 12-months included picks in the healthcare services and beverage industries.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares 6.12% 2.16% 6.94% $19,553 -------------------------------------------------------------------------------- Class A Shares* 0.54% 0.86% 6.12% $18,117 -------------------------------------------------------------------------------- Class B Shares** 0.07% 0.75% 5.85% $17,659 -------------------------------------------------------------------------------- Class C Shares** 5.07% 1.13% 5.85% $17,665 -------------------------------------------------------------------------------- Advisor Shares*** 2.20% 0.97% 6.05% $17,997 -------------------------------------------------------------------------------- Russell 1000(R) 5.23% 3.45% 9.12% $23,943 Index 1 -------------------------------------------------------------------------------- S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405 -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average 1 3.77% 1.40% 7.18% $20,548 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. 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 LARGE CAP CORE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT GROWTH AND INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES REFLECTS PERFORMANCE OF THE KENT GROWTH AND INCOME FUND INVESTMENT SHARES, WITH AN INCEPTION DATE OF DECEMBER 1, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE INCEPTION DATE OF CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST 1, 2005, RESPECTIVELY. THE QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTST+ -------------------------------------------------------------------------------- Exxon Mobil Corp....................................................... 4.03% General Electric Corp.................................................. 3.06% Microsoft Corp......................................................... 2.50% Citigroup, Inc......................................................... 2.35% Chevron Corp........................................................... 1.98% J.P. Morgan Chase & Co................................................. 1.78% IBM Corp............................................................... 1.76% Cisco Systems, Inc..................................................... 1.68% Hewlett-Packard Co..................................................... 1.56% Wells Fargo & Co....................................................... 1.47% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 10 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- LARGE CAP CORE FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Large Cap Core Fund Russell 1000(R) Lipper Large-Cap (Institutional Shares) Index S&P 500 Index Core Funds Average ---------------------- --------------- ---------------- -------------------- 7/31/96 10000 10000 10000 10000 10691 10850 10785 10802 12/96 11428 11716 11684 11555 11646 11897 11998 11690 13110 13897 14090 13539 14284 15110 15146 14675 12/97 14187 15564 15580 14875 16028 17645 17752 16726 16545 18087 18341 17084 14992 16222 16521 15148 12/98 18169 19770 20036 18289 18972 20586 21034 18969 20236 22052 22514 20293 18965 20596 21112 18970 12/99 21583 23905 24250 21801 21807 24948 24806 22610 21157 24092 24147 22063 20753 24264 23913 22106 12/00 19154 22043 22043 20557 16874 19273 19431 18129 17749 20489 20568 19114 15232 17368 17550 16230 12/01 16699 19298 19425 18000 16727 19441 19479 17982 14483 16825 16871 15674 11855 13979 13958 13147 12/02 12730 15120 15134 14041 12284 14675 14657 13538 13999 16985 16912 15454 14306 17494 17360 15823 12/03 16053 19639 19472 17631 16448 20013 19802 17860 16603 20294 20142 18055 16228 19926 19766 17600 12/04 17762 21879 21590 19157 17702 21462 21126 18772 17895 21902 21415 19014 18366 22767 22187 19750 12/05 18771 23250 22649 20227 19716 24294 23602 21043 19359 23891 23262 20552 7/31/06 19553 23943 23405 20548
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 1000(R) Index, the S&P 500(R) Index and the Lipper Large-Cap Core Funds Average. The Russell 1000(R) Index measures the performance of 1,000 largest securities found in the Russell universe. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 1000(R) Index and the S&P 500(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 11 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- EQUITY INDEX FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Equity Index Fund (Institutional Shares) returned 5.21% on a net of fee basis, underperforming its benchmark, the S&P 500(R) Index, which advanced 5.38%. As the Fund seeks to duplicate the returns of the S&P 500(R) Index, slight underperformance is expected, due primarily to Fund management fees. Following a significant mid-period runup in cyclical stocks, investors reverted to a more defensive mindset in May and sent economically sensitive issues tumbling. Accordingly, value stocks generally outperformed growth names, large capitalization holdings topped small cap equities and higher quality positions outperformed low quality stocks. From a sector standpoint, the energy sector led the market as oil prices settled above $70 a barrel. Early attraction to exploration and production companies gave way to drillers and oilfield service companies, which benefited from expanded capital expenditure budgets industrywide. One of the worst performing groups during the first six months of period--telecommunication services--rallied through the second half to finish with the second-best overall performance. As risk tolerance faded, many investors sought out the stable growth rates found within the sector, as well as relatively healthy dividend yields.+ Interestingly, the financial services sector also boosted returns despite steadily rising interest rates, which usually weigh on bank earnings. Largely accounting for the outperformance were brokerages, asset managers and large investment banks, which profited from the heightened merger and acquisition activity.+ Hindering performance were the information technology (IT) and consumer discretionary sectors, which both posted negative returns. Slowing growth in personal computer sales and easing fortunes among high-flying Internet concerns weighed on the IT group while worries about consumer spending in the face of higher interest rates and a cooler housing market prompted an aversion to discretionary stocks. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND INVESTS SUBSTANTIALLY ALL OF ITS ASSETS IN COMMON STOCK OF COMPANIES THAT MAKE UP THE S&P 500(R) INDEX. THE ADVISOR ATTEMPTS TO TRACK THE PERFORMANCE OF THE S&P 500(R) INDEX TO ACHIEVE A CORRELATION OF 95% BETWEEN THE PERFORMANCE OF THE FUND AND THAT OF THE S&P 500(R) 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares 5.21% 2.55% 8.51% $22,625 -------------------------------------------------------------------------------- Class A Shares* -0.28% 1.24% 7.68% $20,959 -------------------------------------------------------------------------------- Class B Shares** -0.83% 1.14% 7.43% $20,469 -------------------------------------------------------------------------------- Class C Shares** 4.15% 1.53% 7.43% $20,480 -------------------------------------------------------------------------------- Advisor Shares*** 1.32% 1.39% 7.63% $20,856 -------------------------------------------------------------------------------- Select Shares 5.13% 2.46% 8.43% $22,465 -------------------------------------------------------------------------------- Preferred Shares 5.06% 2.39% 8.35% $22,302 -------------------------------------------------------------------------------- Trust Shares 4.95% 2.29% 8.25% $22,086 -------------------------------------------------------------------------------- S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405 -------------------------------------------------------------------------------- Lipper S&P 500(R) Index Objective Funds Average 1 4.84% 2.26% 8.42% $22,450 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE OF THE EQUITY INDEX FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INDEX EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INDEX EQUITY FUND INVESTMENT SHARES, WITH AN INCEPTION DATE OF NOVEMBER 25, 1992, ADJUSTED FOR MAXIMUM SALES CHARGE. THE INCEPTION DATE FOR THE CLASS B, CLASS C AND ADVISOR SHARES IS OCTOBER 29, 2001. PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF CLASS B, CLASS C AND ADVISOR SHARES REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. THE INCEPTION DATE FOR THE SELECT, PREFERRED AND TRUST SHARES IS OCTOBER 20, 2003. PRIOR TO SUCH DATE, QUOTED PERFORMANCE OF THE SELECT, PREFERRED AND TRUST SHARES REFLECTS PERFORMANCE OF THE INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR SELECT, PREFERRED AND TRUST SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- Exxon Mobil Corp....................................................... 3.14% General Electric Corp.................................................. 2.60% Citigroup, Inc......................................................... 1.84% Bank of America Corp................................................... 1.80% Microsoft Corp......................................................... 1.61% Pfizer, Inc............................................................ 1.46% Johnson & Johnson...................................................... 1.42% Procter & Gamble Co.................................................... 1.41% Altria Group, Inc...................................................... 1.28% J.P. Morgan Chase & Co................................................. 1.21% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 12 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- EQUITY INDEX FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Equity Lipper S&P 500 Index Fund S&P 500(R) Index Objective (Institutional Shares) Index Funds Average ---------------------- --------------- ---------------- 7/31/96 10000 10000 10000 10770 10785 10774 12/96 11643 11684 11657 11947 11998 11952 13999 14090 14022 15015 15146 15051 12/97 15433 15580 15463 17568 17752 17598 18136 18341 18160 16324 16521 16345 12/98 19794 20036 19817 20770 21034 20775 22215 22514 22206 20797 21112 20801 12/99 23862 24250 23867 24391 24806 24382 23722 24147 23703 23484 23913 23460 12/00 21644 22043 21611 19060 19431 19031 20157 20568 20119 17185 17550 17146 12/01 18999 19425 18955 19033 19479 18987 16471 16871 16424 13616 13958 13579 12/02 14752 15134 14709 14282 14657 14228 16467 16912 16401 16882 17360 16815 12/03 18912 19472 18841 19218 19802 19139 19533 20142 19448 19158 19766 19065 12/04 20923 21590 20805 20463 21126 20342 20734 21415 20600 21472 22187 21324 12/05 21909 22649 21756 22829 23602 22655 22485 23262 22318 7/31/06 22625 23405 22450 The minimum investment for the Institutional Share Class is $5 million, based on the initial investment of $5 million the ending value for the Institutional Shares would have been $11,312,478. 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.53.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(R) Index and the Lipper S&P 500(R) Index Objective Funds Average. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lipper S&P 500(R) Index Objective Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500(R) Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper S&P 500(R) Index Objective Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 13 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- BALANCED FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Balanced Fund (Institutional Shares) lost 1.51% on a net of fee basis, compared to the S&P 500(R) Index return of 5.38% and the Lehman Brothers Aggregate Bond Index return of 1.46%. As concerns slowing economic growth compounded amid rising interest rates and increasing inflationary pressures, equity markets experienced a swift and volatile shift in leadership through the final three months of the period. Seeking companies with more reliable earnings and steadier growth rates, investors dumped cyclical stocks, which tend to prosper in periods of robust economic growth, and shifted to more defensive names. Against this backdrop, Fund holdings in the healthcare, information technology (IT) and energy sectors hampered performance. Within the healthcare space, preferences shifted to previously neglected large capitalization pharmaceutical companies and away from Fund positions in the insurer and medical device groups, which contended with cloudy growth prospects.+ Broader expectations for slower growth also pulled down IT stocks, although the Fund realized a modest benefit from reducing its stake from overweight to underweight, relative to the benchmark, during the period. Also diminishing returns were the Fund's oilfield services stocks, which dropped as energy sector investors migrated toward large integrated oil companies. Aiding performance was a well-diversified overweight position in the consumer staples sector and a materials group stake which was somewhat insulated from wild swings in commodity prices. As interest rates rose across the yield curve, the fixed income component of the Fund benefited from overweight positions, relative to the benchmark, in asset backed securities (ABS) and commercial mortgage backed securities (CMBS).+ Consisting primarily of home equity loans originating 3-5 years ago--before the rapid acceleration in housing values--the Fund's ABS exposure saw minimal reaction to the cooling of the housing market.+ Within the CMBS space, the solid fundamental health of the commercial real estate market, which featured low delinquency and foreclosure rates, bolstered the Fund's holdings. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares -1.51% 0.26% 6.20% $18,251 -------------------------------------------------------------------------------- Class A Shares* -6.63% -1.02% 5.45% $16,996 -------------------------------------------------------------------------------- Class B Shares** -7.39% -1.13% 5.09% $16,428 -------------------------------------------------------------------------------- Class C Shares** -2.56% -0.75% 5.27% $16,712 -------------------------------------------------------------------------------- Advisor Shares*** -5.18% -0.90% 5.25% $16,685 -------------------------------------------------------------------------------- S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405 -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index 1 1.46% 4.79% 6.33% $18,476 -------------------------------------------------------------------------------- Lipper Balanced Funds Average 1 4.30% 3.53% 7.02% $20,005 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES ARE AUGUST 11, 1998, OCTOBER 11, 2000, APRIL 25, 1996 AND OCTOBER 29, 2001, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- Fannie Mae, 5.50%, 9/1/36 TBA.......................................... 2.78% Truck Retail Installment Paper Corp., 5.47%, 12/15/16.................. 2.19% Chase Mortgage Finance Corp., Series 2005-AI, Class 2A2,5.25%, 12/25/35............................................ 2.11% J.P. Morgan Mortgage Trust, Series 2005-A2, Class 3A2,4.93%, 4/25/35............................................. 2.11% Freddie Mac, 4.50%, 8/15/16............................................ 1.65% Chase Mortgage Finance Corp.,5.00%, I 1/25/1933........................ 1.63% American Home Mortgage Investment Trust, Series 2005-2, Class 5A4D, 5.33%, 9/25/35............................ 1.55% Northern Trust Corp.................................................... 1.25% McDonald's Corp........................................................ 1.24% Procter & Gamble Co.................................................... 1.17% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 14 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- BALANCED FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Lehman Brothers Balanced Fund S&P 500(R) Aggregate Bond Lipper Balanced (Institutional Shares) Index Index Funds Average ---------------------- --------------- ---------------- -------------------- 7/31/96 10000 10000 10000 10000 10825 10785 10157 10538 12/96 11399 11684 10462 11102 11358 11998 10403 11126 12935 14090 10785 12289 13926 15146 11144 13111 12/97 14144 15580 11472 13284 15193 17752 11650 14323 15113 18341 11922 14497 14146 16521 12427 13604 12/98 16669 20036 12468 15194 16770 21034 12407 15431 17476 22514 12298 16117 16851 21112 12381 15420 12/99 19275 24250 12366 16593 20349 24806 12639 17102 20304 24147 12859 16907 20752 23913 13247 17274 12/00 19717 22043 13804 17005 17081 19431 14223 16122 18202 20568 14303 16743 15599 17550 14962 15371 12/01 18053 19425 14969 16423 17847 19479 14983 16460 15720 16871 15537 15318 14412 13958 16249 13881 12/02 15100 15134 16504 14553 14850 14657 16734 14304 15895 16912 17153 15840 16190 17360 17128 16133 12/03 17316 19472 17182 17367 17417 19802 17638 17739 17385 20142 17207 17692 17205 19766 17758 17631 12/04 18161 21590 17927 18751 18188 21126 17841 18500 18343 21415 18378 18818 18382 22187 18254 19299 12/05 18499 22649 18363 19569 18933 23602 18244 20154 18443 23262 18230 19916 7/31/06 18251 23405 18476 20005
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.53.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(R) Index, the Lehman Brothers Aggregate Bond Index and Lipper Balanced Funds Average. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Lehman Brothers Aggregate Bond Index is generally representative of the bond market as a whole. The Lipper Balanced Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500(R) Index and the Lehman Brothers Aggregate Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Balanced Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in the underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 15 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MICRO CAP VALUE FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Micro Cap Value Fund (Institutional Shares) gained 1.93% on a net of fees basis, underperforming its benchmark, the Russell Microcap(R) Index, which returned 2.79%. Despite rising interest rates, increasing prices on raw materials and a housing slowdown, corporate earnings held up well during the period. Residual concerns over such conditions, however, contributed to skittish equity markets, which traded in a relatively muted range-bound fashion. Relative to the benchmark, the Fund's most disappointing performance was in the consumer discretionary sector. Both an overweight position in the poorly performing group and company specific disappointments detracted from performance. Having benefited from an overweight position in the sector over the past several years, the Fund's exposure was gradually reduced to an underweight stake over the course of the period.+ An underweight position in the financial services sector also hindered relative returns as the sector performed well despite rising interest rates. With an eye toward the eventual end of the Federal Reserve's rate-hike campaign, in which the key overnight lending rate has advanced from 1.00% to 5.25% in a 24-month span, the Fund recently increased its ownership of bank stocks.+ The Fund's best relative performance came in the industrials sector, where a substantial overweight position and good stock selection contributed to gains. Notably, picks in the transportation and engineering and construction groups performed well. In addition, the Fund benefited from an underweight position in the healthcare sector, where very good stock selection led to positive returns in a sector that declined within the benchmark.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 --------- -------- -------- --------- --------- Institutional Shares 2/1/98 1.93% 16.05% 13.92% $30,252 -------------------------------------------------------------------------------- Class A Shares* 2/1/98 -3.51% 14.58% 13.08% $28,399 -------------------------------------------------------------------------------- Class B Shares** 2/1/98 -2.70% 14.94% 13.05% $28,343 -------------------------------------------------------------------------------- Class C Shares** 2/1/98 0.86% 15.17% 13.28% $28,846 -------------------------------------------------------------------------------- Advisor Shares*** 2/1/98 -2.00% 14.79% 13.06% $28,355 -------------------------------------------------------------------------------- Russell Micro Cap(R) Index 1 2.79% 11.20% N/A $17,126 -------------------------------------------------------------------------------- Russell 2000(R) Value Index 1 6.93% 13.28% 10.68% $23,700 -------------------------------------------------------------------------------- Lipper Small-Cap Value Funds Average 1 3.83% 11.70% 9.81% $22,445 -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. 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 MICRO CAP VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS AGGRESSIVE VALUE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF FEBRUARY 1, 1998. THE INCEPTION DATE FOR CLASS A, CLASS B AND CLASS C SHARES IS AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS A, 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 A, CLASS B AND CLASS C SHARES. FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MICRO CAP VALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS AGGRESSIVE VALUE FUND INVESTOR SHARES WITH AN INCEPTION DATE OF FEBRUARY 1, 1998. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- Input/Output, Inc...................................................... 1.79% Apogee Enterprises, Inc................................................ 1.63% SonicWALL, Inc......................................................... 1.53% National Dentex Corp................................................... 1.44% OSI Systems, Inc....................................................... 1.44% EFJ, Inc............................................................... 1.41% National Atlantic Holdings Corp........................................ 1.35% Hartmarx Corp.......................................................... 1.34% Symmetricom, Inc....................................................... 1.34% Texas United Bancshares, Inc........................................... 1.30% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 16 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MICRO CAP VALUE FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Micro Cap Value Fund Russell 2000(R) Russell Micro Lipper Small-Cap (Institutional Shares) Value Index Cap(R) Index Value Funds Average ---------------------- --------------- ---------------- -------------------- 2/1/98 10000 10000 10000 10480 11035 11123 10280 10636 10516 8380 8735 8371 12/98 9713 9527 9424 10217 8604 8418 12393 10028 9980 11305 9244 9253 12/99 11799 9385 9756 13004 9744 10152 12373 9934 10000 10206 12562 10663 9953 10980 12/00 11654 11528 8695 11513 12708 11640 8684 11513 14845 12994 10603 13066 12636 11262 8444 11343 12/01 14323 13144 10225 13307 15819 14403 10625 14410 15843 14098 10255 13801 12565 11097 7960 11205 12/02 14358 11643 8578 11768 14190 11051 8361 11138 18641 13562 10743 13346 20867 14610 12279 14333 12/03 24323 17001 14271 16611 26445 18178 15200 17640 27127 18332 14933 17924 26445 18359 14103 17767 12/04 29975 20783 16288 19995 28842 19957 15076 19642 27654 20970 15555 20210 29462 21618 16496 21206 12/05 29881 21762 16704 21369 33034 24701 19065 23789 31454 24033 17774 23006 7/31/06 30252 23700 17126 22445
-------------------------------------------------------------------------------- The Russell Micro Cap(R) Index is a subset of the the Russell 2000(R) Value Index. The Russell Micro Cap(R) 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 and the Lipper Small-Cap Value Funds Average are 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.53.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 Micro Cap(R) Index and the Lipper Small-Cap Value Funds Average. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. The Russell Micro Cap(R) Index is a subset of the Russell 2000(R) Value Index. This custom index consists of the smallest one-half of the stocks in the Russell 2000(R) Value Index using market capitalization as of June 30, of each year after the Russell reconstitution of the Russell 2000(R) Value Index. The Lipper Small-Cap Value Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R)Value Index and the Russell Micro Cap(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Value Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $ 10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 17 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- SMALL CAP VALUE FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Small Cap Value Fund (Institutional Shares) returned 2.62% on a net of fee basis, lagging its benchmark, the Russell 2000(R) Value Index, which gained 6.93%. A strong economy, which led to rising inflationary pressures, caused the Federal Reserve to keep ratcheting up its core lending rate during the period. Through much of the first six months of the period, the fallout proved advantageous to small cap value stocks, but the tide turned during the first quarter of 2006. As many investors focused on global growth prospects, information technology (IT), materials and industrials sector stocks that were too expensive, relative to the Fund's value discipline, led the market. Complicating matters, IT positions that did fit the Fund's investment profile struggled in the market shift, although the group rallied somewhat through the final quarter. Poor stock selection in the software and semiconductor spaces proved especially detrimental.+ The materials sector also weighed on returns as the Fund held little exposure to the industrial metals group, which performed well but was quite highly valued. Some buying opportunities within the sector did arise in the paper, chemicals and alternative fuels groups.+ Lifting returns was the Fund's energy sector stake, where a shift from oilfield service providers to tankers enhanced solid gains. Consumer discretionary sector positions in the apparel manufacturing industry and retail group, which experienced significant consolidation during the period, boosted results as well. By the period's close, however, expectations for an economic slowdown prompted a reduction in discretionary names with a tighter focus on more defensive names.+ Additionally, the Fund's exposure to the consumer staples sector, which tends to offer more consistent returns, was increased through an assortment of new food, beverage and retail positions. As part of its more defensive stance, the Fund's dividend yield increased significantly through the period's closing months.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- -------- --------- --------- Institutional Shares 4/1/03 2.62% 18.90% $17,803 -------------------------------------------------------------------------------- Class A Shares* 4/1/03 -2.74% 16.77% $16,761 -------------------------------------------------------------------------------- Class B Shares** 4/1/03 -2.94% 17.12% $16,930 -------------------------------------------------------------------------------- Class C Shares** 4/1/03 1.59% 17.68% $17,202 -------------------------------------------------------------------------------- Advisor Shares*** 4/1/03 -1.23% 17.15% $16,945 -------------------------------------------------------------------------------- Russell 2000(R) Value Index 1 6.93% 25.72% $21,445 -------------------------------------------------------------------------------- Lipper Small-Cap Core Funds Average 1 3.67% 22.30% $19,661 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- EnerSys................................................................ 2.19% Platinum Underwriters Holdings......................................... 1.86% Quebecor World, Inc.................................................... 1.73% Coca-Cola Femsa, SA de CV ADR ......................................... 1.73% Kindred Healthcare, Inc................................................ 1.72% Irwin Financial Corp................................................... 1.72% Tsakos Energy Navigation, Ltd.......................................... 1.65% Iowa Telecommunications Services....................................... 1.64% Molina Healthcare, Inc................................................. 1.59% Schweitzer-Mauduit International....................................... 1.56% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 18 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- SMALL CAP VALUE FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Small Lipper Small-Cap Cap Value Fund Russell 2000(R) Core Funds (Institutional Shares) Value IndeX Average ---------------------- --------------- ---------------- 4/1/03 10000 10000 10000 11240 12272 12143 11860 13220 13130 12/03 13841 15384 15100 14837 16449 16004 14732 16588 16167 14346 16613 15847 12/04 15471 18806 17925 16041 18058 17327 16520 18975 17919 16741 19562 18882 12/05 17326 19692 19101 18519 22351 21391 18281 21747 20392 7/31/06 17803 21445 19661 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 2000(R) Value Index and the Lipper Small-Cap Core Funds Average. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios. The Lipper Small-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 2000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Small-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $ 10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 19 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MULTI CAP VALUE FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Multi Cap Value Fund (Institutional Shares) advanced 8.38%, underperforming its benchmarks, the Russell 3000(R)Value Index and the Russell MidCap(R) Value Index, which returned I 1.16% and 8.44%, respectively. Shaken by the Gulf Coast hurricanes through the early months of the period and enthusiastic about a bounce back in economic growth during the middle portion, investors grew somber through the closing months. While the Federal Reserve warned about inflationary pressures--and kept raising interest rates to counter such conditions --economically sensitive stocks fell out of favor, replaced by defensive issues. Concurrently, large capitalization stocks outperformed small and medium cap stocks, reversing a 5-year trend. Having recognized the likelihood of this shift, based on historical patterns, early in the period, the average weighted market cap of the Fund's holdings was pushed from $35 billion to $63 billion over the 12-months. Although this added to gains late in the period, it wasn't enough to overcome underperformance by select stocks and sectors. Detractors included the information technology sector, where stakes in semiconductor-related companies and auto industry suppliers diminished returns from an overweight position, relative to the benchmark. Larger-than-the benchmark stakes in the healthcare and industrials sectors offered mixed results. Early in the period, managed care stocks added to relative performance, as did industrial services and manufacturing companies poised to benefit from a post-hurricane season renewal in economic activity. Later on, however, hospital stocks hindered gains and small cap industrial services and manufacturing holdings weighed as investors sought the relative safety of large non-cyclical companies.+ Energy sector investments lifted the Fund, enhanced by a mid-period shift from oil service firms to refining and marketing companies. Strong performance from retailer stocks--bolstered by companies that were acquired and a modest recovery in beaten-down discount chains--provided gains from the consumer discretionary sector.+ Considering the economic and consumer uncertainties that emerged even before the market's late-period slump, the Fund's exposure to discretionary stocks was pared back during the period. Conversely, its stake in the financial services sector, which stands to benefit from the ultimate end of the Fed's rate-hike campaign, was increased significantly.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares 8.38% 10.19% 12.54% $32,596 -------------------------------------------------------------------------------- Class A Shares* 2.74% 8.77% 11.74% $30,337 -------------------------------------------------------------------------------- Class B Shares** 2.43% 8.84% 11.92% $30,831 -------------------------------------------------------------------------------- Class C Shares** 7.33% 9.11% 11.91% $30,813 -------------------------------------------------------------------------------- Advisor Shares*** 4.37% 8.91% 11.81% $30,542 -------------------------------------------------------------------------------- Russell 3000(R) Value Index 1 11.16% 7.88% 11.65% $30,098 -------------------------------------------------------------------------------- Russell MidCap(R) Value Index 1 8.44% 12.98% 14.08% $37,334 -------------------------------------------------------------------------------- Lipper Multi-Cap Value Funds Average 1 7.25% 6.29% 9.77% $25,762 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP VALUE FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS EQUITY FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF APRIL 1, 1999. PRIOR TO APRIL 1, 1999, THE QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS EQUITY FUND INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. THE INCEPTION DATE FOR THE CLASS A, CLASS B AND CLASS C SHARES IS AUGUST 13, 2001. PRIOR TO SUCH DATE, THE QUOTED PERFORMANCE FOR CLASS A SHARES REFLECTS PERFORMANCE OF THE ADVISOR SHARES AND IS ADJUSTED FOR MAXIMUM SALES CHARGES. THE QUOTED PERFORMANCE OF CLASS B AND CLASS C SHARES REFLECTS THE PERFORMANCE OF THE MULTI CAP VALUE FUND ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. PRIOR TO AUGUST 13, 2001, THE QUOTED PERFORMANCE OF THE MULTI CAP VALUE FUND ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/ MAXUS EQUITY FUND INVESTOR SHARES WITH AN INCEPTION DATE OF SEPTEMBER 30, 1989. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- J.P. Morgan Chase & Co................................................. 2.34% Marathon Oil Corp...................................................... 2.20% Verizon Communications, Inc............................................ 2.19% American International Group, Inc...................................... 2.14% Exxon Mobil Corp....................................................... 2.14% Bank of America Corp................................................... 1.99% ConocoPhillips......................................................... 1.94% Pfizer, Inc............................................................ 1.92% Bank of New York Co., Inc.............................................. 1.81% Safeway, Inc........................................................... 1.44% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 20 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MULTI CAP VALUE FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Multi Cap Value Fund Russell 3000(R) Russell MidCap(R) Lipper Multi-Cap (Institutional Shares) Value Index Value Index Value Funds Average ---------------------- --------------- ---------------- -------------------- 7/31/96 10000 10000 10000 10000 10705 10697 10802 10726 12/96 11715 11766 11733 11607 12020 12033 11933 11773 13759 13811 13436 13376 15352 15226 15149 14777 12/97 15013 15863 15765 14774 16133 17661 17341 16481 15577 17672 16895 16224 12297 15525 14588 13815 12/98 13701 18005 16567 15986 13788 18105 16051 16029 16369 20214 17846 17858 14889 18263 15947 15991 12/99 15493 19203 16549 17068 17462 19339 16715 17136 17320 18520 16434 16711 18197 19970 18021 17880 12/00 19174 20746 19723 18680 18917 19625 19026 17959 20049 20675 20367 19075 17428 18377 18014 16574 12/01 20697 19847 20181 18523 20654 20738 21775 19109 18934 19073 20758 17051 15961 15457 17031 13965 12/02 17421 16834 18235 15071 16296 16012 17495 14303 20081 18839 20626 16872 21157 19305 21851 17438 12/03 24503 22075 25176 19880 25568 22810 26522 20571 25637 23010 26981 20742 25294 23338 27449 20628 12/04 28278 25816 31144 22778 28172 25747 31386 22642 28759 26253 32862 23093 30049 27254 34621 24007 12/05 30449 27584 35083 24491 32974 29403 37756 25856 32520 29487 37546 25650 7/31/06 32596 30098 37334 25762
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Russell 3000(R) Value Index, the Russell MidCap(R) Value Index and the Lipper Multi-Cap Value Funds Average. The Russell 3000(R) Value Index measures the performance of those companies in the Russell 3000(R) Index with lower price-to-book ratios and lower forecasted growth values. The Russell MidCap(R) Value Index measures the performance of those Russell mid cap companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Multi-Cap Value Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell 3000(R) Value and the Russell MidCap(R) Value Indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Multi-Cap Value Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 21 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Disciplined Large Cap Value Fund (Institutional Shares) returned 9.29% on a net of fee basis, underperforming its benchmark, the Russell 1000(R) Value Index, which returned 11.59%. Euphoria over the possible end to the Federal Reserve's tightening cycle reigned in the fourth quarter of 2005 and fueled a market shift away from higher quality stocks, which hindered the Fund's performance. Although the broader sentiment reversed course again in May 2006, and investors sought out more defensive names, the Fund's outperformance during the final months of the period wasn't enough to fully offset the earlier underperformance. Adverse stock selection in the materials, telecommunication services and healthcare sectors hindered performance. In materials, the Fund held an overweight stake, relative to the benchmark, in chemical stocks, which corrected on concerns over margin pressure from rising input costs. Also weighing on returns was an overweight stake in the industrials sector, mitigated by good stock selection in the capital goods and commercial services groups.+ The Fund's significant underweight in financials, which performed well despite a rising-rate environment, diminished returns. The impact, however, was dwarfed by the outperformance resulting from strong stock selection among capital market and brokerage holdings.+ An overweight position in consumer staples, which rallied in the late-period search for stability, enhanced returns. In addition, effective stock picks within the sector's tobacco and grocery store groups bolstered results.+ At the period's close, the Fund's emphasis was on stocks that tend to outperform late in economic cycles--and not on interest-rate sensitive stocks. Remaining similar to the benchmark in traditional value measures such as price-book ratio and average yield, the Fund's price-earnings ratio was actually lower than the benchmark--a deeper value indicator--and its average weighted market cap was modestly smaller.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- --------- --------- Institutional Shares 9.29% 8.18% 10.35% $26,767 -------------------------------------------------------------------------------- Class A Shares* 3.61% 6.80% 9.55% $24,899 -------------------------------------------------------------------------------- Class B Shares** 3.34% 6.81% 9.32% $24,383 -------------------------------------------------------------------------------- Class C Shares** 8.21% 7.08% 9.35% $24,449 -------------------------------------------------------------------------------- Advisor Shares*** 5.16% 6.92% 9.48% $24,735 -------------------------------------------------------------------------------- Russell 1000(R) Value Index 1 11.59% 7.46% 11.54% $29,815 -------------------------------------------------------------------------------- Lipper Equity Income Funds Average 1 8.32% 5.52% 9.07% $24,151 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE DISCIPLINED LARGE CAP VALUE FUND INCLUDES PERFORMANCE OF CERTAIN COLLECTIVELY MANAGED ACCOUNTS ADVISED BY FIFTH THIRD BANK, PRIOR TO THE DISCIPLINED LARGE CAP VALUE FUND'S COMMENCEMENT OF OPERATIONS ON JANUARY 27, 1997, AS ADJUSTED TO REFLECT THE EXPENSES ASSOCIATED WITH THE FUND (WITHOUT waivers OR REIMBURSEMENTS). THESE COLLECTIVELY MANAGED ACCOUNTS WERE NOT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AND, THEREFORE, WERE NOT SUBJECT TO THE INVESTMENT RESTRICTIONS IMPOSED BY LAW ON REGISTERED MUTUAL FUNDS. IF SUCH ACCOUNTS HAD BEEN REGISTERED, THE PERFORMANCE MAY HAVE BEEN ADVERSELY AFFECTED. THE PERFORMANCE SHOWN REFLECTS THE DEDUCTION OF FEES FOR VALUE-ADDED SERVICES ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. THE PERFORMANCE ALSO REFLECTS REINVESTMENT OF ALL DIVIDENDS AND CAPITAL-GAINS DISTRIBUTIONS. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE DISCIPLINED LARGE CAP VALUE FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, JANUARY 27, 1997 AND AUGUST 1, 2005, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS PERFORMANCE OF CLASS A SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES OF CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- ConocoPhillips......................................................... 3.47% Chevron Corp........................................................... 3.30% MetLife, Inc........................................................... 3.23% J.P. Morgan Chase & Co................................................. 3.23% Exxon Mobil Corp....................................................... 2.98% Morgan Stanley......................................................... 2.92% Marathon Oil Corp...................................................... 2.85% Bank of America Corp................................................... 2.75% SunTrust Banks, Inc.................................................... 2.72% UST, Inc............................................................... 2.70% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 22 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- DISCIPLINED LARGE CAP VALUE FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Disciplined Large Lipper Equity Cap Value Fund Russell 1000(R) Income Funds (Institutional Shares) Value Index Average ---------------------- --------------- ---------------- 7/31/96 10000 10000 10000 10714 10695 10580 12/96 11466 11762 11347 11714 12063 11533 13504 13842 12939 14485 15220 13887 12/97 15841 15900 14402 17673 17754 15772 17434 17833 15630 16359 15767 14374 12/98 18697 18385 16204 17909 18649 16067 19278 20752 17614 17082 18719 16205 12/99 17817 19736 16848 16612 19830 16875 17719 18901 16651 19020 20387 17881 12/00 20087 21121 18572 17929 19884 17625 18328 20855 18294 16660 18571 16687 12/01 17606 19940 17734 17900 20756 18346 16142 18988 16724 13904 15423 13922 12/02 15191 16845 14986 14388 16025 14235 17132 18793 16461 17679 19181 16760 12/03 20377 21903 18901 20964 22567 19323 21476 22765 19508 21648 23117 19595 12/04 23174 25516 21366 23265 25538 21330 23534 25966 21594 24735 26974 22385 12/05 24560 27316 22642 26000 28937 23741 26349 29107 23785 7/31/06 26767 29815 24151 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.53.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 l000(R) Value Index and the Lipper Equity Income Funds Average. The Russell l000(R) Value Index measures the performance of 1,000 securities found in the Russell universe with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earning ratios, higher dividend yields and lower forecasted growth values. The Lipper Equity Income Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Russell l000(R) Value Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Equity Income Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 23 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third LifeModel Aggressive Fund SM (Institutional Shares) returned 5.13% on a net of fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%, respectively. During the period, equity investors logged subdued returns in the face of continued headwinds from the Federal Reserve and crude oil markets--a pair of forces that have stymied investors for two years. Within the most recent 12-month period, the Fed raised its key Federal Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel. The combination of forces pressured price-to-earnings multiples for the major stock indices, even though corporate profits continued to grow at a robust pace. As a result, the broader domestic stock indices posted returns in the 5% range for the period. The global MSCI EAFE Index, by comparison, returned 24.51 %, a positive development for the Fund, which had elevated its exposure to international equities early in the period. Also aiding performance was the decision to increase the Fund's allocation to the short-term Money Market Fund in early 2006.+ In general, the Fund maintained a bias toward large capitalization stocks and a defensive posture in the bond portfolio throughout the period. Both approaches represented a more conservative stance in acknowledgement of the dual risks of rising energy prices and an active Federal Reserve.+ Shortly after the period's close, the Fed halted its rate-hike campaign, a development which could prove beneficial for both stock and bond investors. Still risky, however, were volatile energy markets.+ -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------- --------- --------- Institutional Shares 8/1/02 5.13% 12.12% $15,797 -------------------------------------------------------------------------------- Class A Shares* 8/1/02 -0.41% 10.37% $14,836 -------------------------------------------------------------------------------- Class B Shares** 8/1/02 -0.90% 10.41% $14,859 -------------------------------------------------------------------------------- Class C Shares** 8/1/02 4.11% 10.98% $15,166 -------------------------------------------------------------------------------- Advisor Shares*** 8/1/02 1.23% 10.63% $14,977 -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 5.22% 12.23% $15,863 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 1.78% 3.73% $11,579 -------------------------------------------------------------------------------- LifeModel Aggressive Target Neutral Asset Class Index Blend 3 4.90% 11.43% $15,419 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/ OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Quality Growth Fund 23.38% Fifth Third Disciplined Large Cap Value Fund 18.13% Fifth Third Large Cap Core Fund 14.19% Fifth Third International Equity Fund 11.70% Fifth Third Mid Cap Growth Fund 8.97% Fifth Third Institutional Money Market Fund 8.13% Fifth Third Multi Cap Value Fund 7.21% Fifth Third Small Cap Growth Fund 4.48% Fifth Third Small Cap Value Fund 3.81% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 24 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL AGGRESSIVE FUND SM -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Lehman Brothers LifeModel Fifth Third LifeModel Dow Jones Intermediate Aggressive Target Aggressive Fund SM Wilshire 5000 Government/Credit Neutral Asset Class (Institutional Shares) Index Bond Index Index Blend ---------------------- --------------- ----------------- ------------------- 8/1/02 10000 10000 10000 10000 9070 9049 10331 9177 12/02 9798 9757 10506 9844 9346 9456 10664 9585 10990 11017 10954 11030 11562 11425 10952 11400 12/03 13136 12845 10959 12671 13455 13179 11230 12999 13491 13349 10946 13117 13062 13111 11242 12943 12/04 14267 14466 11292 14149 14010 14120 11193 13833 14399 14469 11471 14176 15038 15032 11412 14666 12/05 15344 15381 11470 14980 16372 16231 11426 15719 15981 15921 11450 15452 7/31/06 15797 15863 11579 15419
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 3 The LifeModel Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (90%) and the Lehman Brothers Intermediate Government/Credit Bond Index (10%). The LifeModel Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 25 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third LifeModel Moderately Aggressive Fund SM (Institutional Shares) returned 4.60% on a net of fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%, respectively. During the period, equity investors logged subdued returns in the face of continued headwinds from the Federal Reserve and crude oil markets--a pair of forces that have stymied investors for two years. Within the most recent 12-month period, the Fed raised its key Federal Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel. The combination of forces pressured price-to-earnings multiples for the major stock indices, even though corporate profits continued to grow at a robust pace, while bond yields generally advanced. As a result, the broader domestic stock indices posted returns in the 5% range and major bond indices gained around 2% for the period. The global MSCI EAFE Index, by comparison, returned 24.51 %, a positive development for the Fund, which had elevated its exposure to international equities early in the period. Also aiding performance was the decision to initiate a modest position in the Fifth Third High Yield Bond Fund in December 2005 as well as the decision to increase the Fund's allocation to the short-term Money Market Fund in early 2006.+ In general, the Fund maintained a bias toward large capitalization stocks and a defensive posture in the bond portfolio throughout the period. Both approaches represented a more conservative stance in acknowledgement of the dual risks of rising energy prices and an active Federal Reserve.+ Shortly after the period's close, the Fed halted its rate-hike campaign, a development which could prove beneficial for both stock and bond investors. Still risky, however, were volatile energy markets. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------- --------- --------- Institutional Shares 8/1/02 4.60% 11.36% $15,376 -------------------------------------------------------------------------------- Class A Shares* 8/1/02 -0.85% 9.67% $14,462 -------------------------------------------------------------------------------- Class B Shares** 8/1/02 -1.37% 9.72% $14,488 -------------------------------------------------------------------------------- Class C Shares** 8/1/02 3.53% 10.27% $14,783 -------------------------------------------------------------------------------- Advisor Shares*** 8/1/02 0.71% 9.89% $14,581 -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 5.22% 12.23% $15,863 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 1.78% 3.73% $11,579 -------------------------------------------------------------------------------- LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend 3 4.23% 9.80% $14,537 -------------------------------------------------------------------------------- PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/ OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Quality Growth Fund 18.84% Fifth Third Disciplined Large Cap Value Fund 14.62% Fifth Third Large Cap Core Fund 10.76% Fifth Third International Equity Fund 10.35% Fifth Third Intermediate Bond Fund 7.53% Fifth Third Mid Cap Growth Fund 6.63% Fifth Third Multi Cap Value Fund 5.60% Fifth Third Institutional Money Market Fund 5.52% Fifth Third High Yield Bond Fund 5.40% Fifth Third Short Term Bond Fund 5.12% Fifth Third Bond Fund 4.19% Fifth Third Small Cap Growth Fund 3.00% Fifth Third Small Cap Value Fund 2.44% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 26 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY AGGRESSIVE FUND SM -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Lehman Brothers LifeModel Moderately LifeModel Moderately Dow Jones Intermediate Aggressive Target Aggressive Fund Wilshire Government/Credit Neutral Asset Class (Institutional Shares) 5000 Index Bond Index Index Blend ---------------------- --------------- ----------------- -------------------- 8/1/02 10000 10000 10000 10000 9700 9049 10331 9432 12/02 10290 9757 10506 10009 10011 9456 10664 9837 11406 11017 10954 11043 11866 11425 10952 11333 12/03 13125 12845 10959 12311 13421 13179 11230 12628 13385 13349 10946 12646 13117 13111 11242 12591 12/04 14086 14466 11292 13511 13871 14120 11193 13252 14234 14469 11471 13582 14710 15032 11412 13933 12/05 14956 15381 11470 14182 15757 16231 11426 14712 15475 15921 11450 14526 7/31/06 15376 15863 11579 14537
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 3 The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (70%) and the Lehman Brothers Intermediate Government/Credit Bond Index (30%). The LifeModel Moderately Aggressive Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 27 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATE FUND SM -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third LifeModel Moderate Fund SM (Institutional Shares) returned 3.90% on a net of fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%, respectively. During the period, equity investors logged subdued returns in the face of continued headwinds from the Federal Reserve and crude oil markets--a pair of forces that have stymied investors for two years. Within the most recent 12-month period, the Fed raised its key Federal Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel. The combination of forces pressured price-to-earnings multiples for the major stock indices, even though corporate profits continued to grow at a robust pace, while bond yields generally advanced. As a result, the broader domestic stock indices posted returns in the 5% range and major bond indices gained around 2% for the period. The global MSCI EAFE Index, by comparison, returned 24.51%, a positive development for the Fund, which had elevated its exposure to international equities early in the period. Also aiding performance was the decision to initiate a modest position in the Fifth Third High Yield Bond Fund for diversification purposes in December 2005 as well as the decision to increase the Fund's allocation to the short-term Money Market Fund in early 2006.+ In general, the Fund maintained a bias toward large capitalization stocks and a defensive posture in the bond portfolio throughout the period. Both approaches represented a more conservative stance in acknowledgement of the dual risks of rising energy prices and an active Federal Reserve.+ Shortly after the period's close, the Fed halted its rate-hike campaign, a development which could prove beneficial for both stock and bond investors. Still risky, however, were volatile energy markets. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------- --------- --------- Institutional Shares 8/1/02 3.90% 8.52% $13,865 -------------------------------------------------------------------------------- Class A Shares* 8/1/02 -1.55% 6.85% $13,033 -------------------------------------------------------------------------------- Class B Shares** 8/1/02 -2.14% 6.83% $13,021 -------------------------------------------------------------------------------- Class C Shares** 8/1/02 2.88% 7.46% $13,331 -------------------------------------------------------------------------------- Advisor Shares*** 8/1/02 -0.08% 7.05% $13,129 -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 5.22% 12.23% $15,863 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 1.78% 3.73% $11,579 -------------------------------------------------------------------------------- LifeModel Moderate Target Neutral Asset Class Index Blend 3 3.55% 8.13% $13,668 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/ OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Intermediate Bond Fund 15.99% Fifth Third Quality Growth Fund 13.97% Fifth Third Short Term Bond Fund 10.94% Fifth Third Disciplined Large Cap Value Fund 10.53% Fifth Third Bond Fund 9.03% Fifth Third Large Cap Core Fund 8.48% Fifth Third International Equity Fund 8.02% Fifth Third High Yield Bond Fund 5.45% Fifth Third Mid Cap Growth Fund 4.85% Fifth Third Institutional Money Market Fund 4.81% Fifth Third Multi Cap Value Fund 3.92% Fifth Third Small Cap Growth Fund 2.08% Fifth Third Small Cap Value Fund 1.93% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 28 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATE FUND SM -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Lehman Brothers LifeModel Fifth Third LifeModel Dow Intermediate Moderate Target Moderate Fund Jones Wilshire Government/Credit Neutral Asset (Institutional Shares) 5000 Index Bond Index Class Index Blend ---------------------- --------------- ----------------- -------------------- 8/1/02 10000 10000 10000 10000 9594 9049 10331 9687 12/02 10053 9757 10506 10164 9894 9456 10664 10083 10944 11017 10954 11039 11269 11425 10952 11247 12/03 12129 12845 10959 11938 12449 13179 11230 12242 12367 13349 10946 12166 12220 13111 11242 12223 12/04 12892 14466 11292 12873 12736 14120 11193 12665 13045 14469 11471 12981 13354 15032 11412 13202 12/05 13547 15381 11470 13391 14078 16231 11426 13732 13876 15921 11450 13617 7/31/06 13865 15863 11579 13668
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 3 The LifeModel Moderate Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (50%) and the Lehman Brothers Intermediate Government/Credit Bond Index (50%). The LifeModel Moderate Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 29 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third LifeModel Moderately Conservative Fund SM (Institutional Shares) returned 3.39% on a net of fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%, respectively. During the period, bond investors netted lackluster returns that trailed the rate of inflation in the face of continued headwinds from the Federal Reserve and crude oil markets--a pair of forces that have stymied investors for two years. Within the most recent 12-month period, the Fed raised its key Federal Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel. The combination of forces generally lifted bond yields higher while pressuring price-to-earnings multiples for the major stock indices. As a result, the major bond indices gained around 2% for the period while the broader domestic stock indices posted returns in the 5% range. The Fund's diversified stock portfolio enhanced performance during the period, especially within its international exposure, which was increased early on.+ Further bolstering returns was the addition of a modest position in the Fifth Third High Yield Bond Fund for diversification purposes in December 2005 as well as the decision to increase the Fund's allocation to the short-term Money Market Fund in early 2006.+ In general, the Fund maintained a defensive posture in the bond portfolio and a large capitalization bias in the stock portfolio throughout the period. Both approaches represented a more conservative stance in acknowledgement of the dual risks of rising energy prices and an active Federal Reserve.+ Shortly after the period's close, the Fed halted its rate-hike campaign, a development which could prove beneficial for both bond and stock investors. Still risky, however, were volatile energy markets. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------- --------- --------- Institutional Shares 8/1/02 3.39% 6.96% $13,084 -------------------------------------------------------------------------------- Class A Shares* 8/1/02 -2.02% 5.33% $12,306 -------------------------------------------------------------------------------- Class B Shares** 8/1/02 -2.61% 5.25% $12,270 -------------------------------------------------------------------------------- Class C Shares** 8/1/02 2.43% 5.91% $12,581 -------------------------------------------------------------------------------- Advisor Shares*** 8/1/02 -0.51% 5.53% $12,399 -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 5.22% 12.23% $15,863 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 1.78% 3.73% $11,579 -------------------------------------------------------------------------------- LifeModel Moderately Conservative Target Neutral Asset Class Index Blend 3 3.21% 7.27% $13,239 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/ OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Intermediate Bond Fund 21.11% Fifth Third Short Term Bond Fund 13.62% Fifth Third Quality Growth Fund 11.49% Fifth Third Bond Fund 11.29% Fifth Third Disciplined Large Cap Value Fund 9.29% Fifth Third International Equity Fund 7.79% Fifth Third Institutional Money Market Fund 6.99% Fifth Third Large Cap Core Fund 6.04% Fifth Third High Yield Bond Fund 4.87% Fifth Third Mid Cap Growth Fund 3.11% Fifth Third Multi Cap Value Fund 2.62% Fifth Third Small Cap Growth Fund 0.98% Fifth Third Small Cap Value Fund 0.80% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 30 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL MODERATELY CONSERVATIVE FUND SM -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third LifeModel Lehman Brothers LifeModel Moderately Moderately Dow Jones Intermediate Conservative Target Conservative Fund Wilshire 5000 Government/Credit Neutral Asset Class (Institutional Shares) Index Bond Index Blend Index ---------------------- --------------- ----------------- -------------------- 8/1/02 10000 10000 10000 10000 9517 9049 10331 9816 12/02 9958 9757 10506 10237 9844 9456 10664 10203 10726 11017 10954 11030 10988 11425 10952 11197 12/03 11674 12845 10959 11747 11925 13179 11230 12045 11817 13349 10946 11924 11751 13111 11242 12033 12/04 12291 14466 11292 12554 12158 14120 11193 12370 12437 14469 11471 12679 12673 15032 11412 12839 12/05 12822 15381 11470 12999 13217 16231 11426 13254 13073 15921 11450 13170 7/31/06 13084 15863 11579 13239
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 3 The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (40%) and the Lehman Brothers Intermediate Government/Credit Bond Index (60%). The LifeModel Moderately Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 31 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third LifeModel Conservative Fund SM (Institutional Shares) returned 2.88% on a net of fee basis, while its benchmarks, the Dow Jones Wilshire 5000 Index and Lehman Brothers Intermediate Government/Credit Bond Index, advanced 5.22% and 1.78%, respectively. During the period, bond investors netted lackluster returns that trailed the rate of inflation in the face of continued headwinds from the Federal Reserve and crude oil markets--a pair of forces that have stymied investors for two years. Within the most recent 12-month period, the Fed raised its key Federal Funds rate eight times--pushing it to 5.25%--and the price of crude oil rose 24% to more than $70 a barrel. The combination of forces generally lifted bond yields higher, although the yield curve flattened as short-term rates rose more than long-term yields. Meanwhile, the major stock indices contended with pressure on price-to-earnings multiples. As a result, the major bond indices gained around 2% for the period while the broader domestic stock indices posted returns in the 5% range. The Fund's limited--but diversified--stock portfolio enhanced performance during the period, especially within its international exposure, which was increased early on.+ Further bolstering returns was the addition of a modest position in the Fifth Third High Yield Bond Fund for diversification purposes in December 2005 as well as the decision to increase the Fund's allocation to the short-term Money Market Fund in early 2006.+ In general, the Fund maintained a defensive posture in the bond portfolio and a large capitalization bias in the stock portfolio throughout the period. Both approaches represented a more conservative stance in acknowledgement of the dual risks of rising energy prices and an active Federal Reserve.+ Shortly after the period's close, the Fed halted its rate-hike campaign, a development which could prove beneficial for both bond and stock investors. Still risky, however, were volatile energy markets. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND INVESTS IN UNDERLYING FUNDS, SO ITS INVESTMENT PERFORMANCE IS DIRECTLY RELATED TO THE PERFORMANCE OF THOSE UNDERLYING FUNDS. BEFORE INVESTING, INVESTORS SHOULD ASSESS THE RISKS ASSOCIATED WITH AND TYPES OF INVESTMENTS MADE BY EACH OF THE UNDERLYING FUNDS IN WHICH THE FUND INVESTS. STOCKS ARE MORE VOLATILE AND CARRY MORE RISK AND RETURN POTENTIAL THAN OTHER FORMS OF INVESTMENTS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE, PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. CASH EQUIVALENTS OFFER LOW RISK AND LOW RETURN POTENTIAL. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR INCEPTION VALUE 2 --------- ------- --------- --------- Institutional Shares 8/1/02 2.88% 5.56% $12,415 -------------------------------------------------------------------------------- Class A Shares* 8/1/02 -2.48% 3.93% $11,666 -------------------------------------------------------------------------------- Class B Shares** 8/1/02 -3.07% 3.85% $11,628 -------------------------------------------------------------------------------- Class C Shares** 8/1/02 1.72% 4.50% $11,923 -------------------------------------------------------------------------------- Advisor Shares*** 8/1/02 -1.08% 4.14% $11,759 -------------------------------------------------------------------------------- Dow Jones Wilshire 5000 Index 1 5.22% 12.23% $15,863 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 1.78% 3.73% $11,579 -------------------------------------------------------------------------------- LifeModel Conservative Target Neutral Asset Class Index Blend 3 2.50% 5.52% $12,396 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE QUOTED PERFORMANCE OF THE ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE INSTITUTIONAL SHARES, ADJUSTED TO REFLECT EXPENSES AND SALES CHARGES FOR THE ADVISOR SHARES, FOR THE PERIOD PRIOR TO THE COMMENCMENT OF OPERATIONS OF THE ADVISOR SHARES ON AUGUST 1, 2005. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/ OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- [BAR CHART] Fifth Third Intermediate Bond Fund 30.00% Fifth Third Short Term Bond Fund 19.94% Fifth Third Bond Fund 17.57% Fifth Third Quality Growth Fund 7.26% Fifth Third Disciplined Large Cap Value Fund 5.78% Fifth Third High Yield Bond Fund 5.04% Fifth Third Institutional Money Market Fund 4.86% Fifth Third International Equity Fund 3.47% Fifth Third Large Cap Core Fund 2.82% Fifth Third Mid Cap Growth Fund 0.97% Fifth Third Multi Cap Value Fund 0.88% Fifth Third Small Cap Growth Fund 0.78% Fifth Third Small Cap Value Fund 0.63% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 32 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- FIFTH THIRD LIFEMODEL CONSERVATIVE FUND SM -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Lehman Brothers LifeModel Fifth Third LifeModel Dow Jones Intermediate Conservative Target Conservative Fund SM Wilshire 5000 Government/Credit Neutral Asset Class (Institutional Shares) Index Bond Index Index Blend ---------------------- --------------- ----------------- -------------------- 8/1/02 10000 10000 10000 10000 9909 9049 10331 10073 12/02 10233 9757 10505 10377 10245 9456 10663 10437 10840 11017 10952 11000 10996 11425 10950 11082 12/03 11383 12845 10957 11356 11609 13179 11229 11641 11450 13349 10946 11436 11500 13111 11241 11643 12/04 11819 14466 11290 11919 11714 14120 11191 11779 11979 14469 11468 12073 12086 15032 11408 12118 12/05 12194 15381 11467 12225 12414 16231 11422 12321 12345 15921 11446 12295 7/31/06 12415 15863 11579 12396
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Dow Jones Wilshire 5000 Index, and the Lehman Brothers Intermediate Government/Credit Bond Index. The Dow Jones Wilshire 5000 Index measures the performance of all U.S. headquartered equity securities with readily available price data. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury. The debt issues all maintain maturities within a range of one to ten years. The Dow Jones Wilshire 5000 Index and the Lehman Brothers Intermediate Government/Credit Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 3 The LifeModel Conservative Target Neutral Asset Class Index Blend is an unmanaged custom-blended index, created by Fifth Third Asset Management, Inc., comprised of the Dow Jones Wilshire 5000 Index (20%) and the Lehman Brothers Intermediate Government/Credit Bond Index (80%). The LifeModel Conservative Target Neutral Asset Class Index Blend is a hypothetical blend only and does not represent underlying allocations in the Fund. 33 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- STRATEGIC INCOME FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Strategic Income Fund (Institutional Shares) gained 2.61% on a net of fee basis, outperforming its benchmark's, the Lehman Brothers Aggregate Bond Index and the Lehman Brothers Intermediate Credit Bond Index, which returned 1.44% and 1.46%, respectively. The Fund changed its benchmark index from the Lehman Brothers Intermediate Credit Bond Index to the Lehman Brothers Aggregate Bond Index, in order to better represent the Fund's investment policies for comparison purposes. A slight inversion of the yield curve, featuring higher short-term interest rates than long-term yields, kept a lid on returns from income-generating investments during the period. The Federal Reserve dominated the landscape with eight straight quarter-point increases in its key overnight lending rate, which pushed short-term yields from 3.25% to 5.25%. Meanwhile, longer-term issues reflected growing concerns over an economic slowdown and rose modestly. While anticipating that the Fed would remain vigilant throughout the period, the Fund emphasized better-yielding vehicles such as real estate investment trusts (REITs) and preferred stocks. In doing so, the Fund not only topped its benchmark but it achieved its number one goal of providing a steady stream of income for investors. Furthermore, within the period, the monthly average dividend was increased, resulting in a yield of nearly 5%. Strong fundamentals buoyed the Fund's REIT positions, which were concentrated in the retail and industrial industries. Having rallied for nearly four years, many REITs have attained rich valuations, which prompted a reduction in the Fund's exposure during the period.+ Preferred stocks featuring floating rates--which have yields that generally move upward with Fed rate hikes--and lower tax rates for taxable investors were the focus of additions to the Fund during the period. Detracting from performance were any holdings with maturation dates beyond 5 years, which struggled in the rising rate environment.+ At the period's end, the Fund's Money Market Fund position was larger than its historical average, reflecting the better yield opportunities that existed at the short end of the investment spectrum. The Fund finished the period with a 8% turnover rate, another historically low figure that minimized capital gains and trading costs throughout the year.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 --------- ------- --------- --------- Institutional Shares 2.61% 6.51% 7.22% $20,087 -------------------------------------------------------------------------------- Class A Shares* -2.79% 5.04% 6.41% $18,608 -------------------------------------------------------------------------------- Class B Shares** -3.29% 5.15% 6.37% $18,544 -------------------------------------------------------------------------------- Class C Shares** 1.62% 5.37% 6.32% $18,452 -------------------------------------------------------------------------------- Advisor Shares*** -1.24% 5.28% 6.54% $18,838 -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index 1 1.46% 4.79% 6.33% $18,476 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Credit Bond Index 1 1.44% 5.05% 6.35% $18,514 -------------------------------------------------------------------------------- Lipper Flexible Income Funds Average 1 0.30% 0.49% -0.50% $11,493 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. 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 22, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD STRATEGIC INCOME FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/ MAXUS INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF SEPTEMBER 1, 1998. PRIOR TO SEPTEMBER 1, 1998 THE QUOTED PERFORMANCE REFLECTS THE PERFORMANCE FOR THE FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES. CLASS A, CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON APRIL 1, 2004, APRIL 1, 2004 AND OCTOBER 29, 2001, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS A, CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATES REPRESENT THE PERFORMANCE FOR ADVISOR SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR THE RESPECTIVE SHARE CLASS. PRIOR TO OCTOBER 22, 2001, THE QUOTED PERFORMANCE FOR ADVISOR SHARES REFLECTS THE PERFORMANCE OF THE FIFTH THIRD/MAXUS INCOME FUND INVESTOR SHARES WITH AN INCEPTION DATE OF MARCH 10, 1985. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- [BAR CHART] Corporate Bond Equivalents 34.46% Corporate Bonds 23.55% Investment Companies 8.38% Common Stocks 6.88% Preferred Stocks 6.76% Real Estate Investment Trusts 6.59% Investments in Affiliates 5.20% Short-Term Securities Held as Collateral for Securities Lending 4.11% U.S. Government Agencies 2.89% Foreign Bonds 1.18% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 34 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- STRATEGIC INCOME FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Lehman Brothers Fifth Third Strategic Intermediate Lehman Brothers Lipper Flexible Income Fund Credit Bond Aggregate Bond Income Funds (Institutional Shares) Index Index Average ---------------------- --------------- ----------------- -------------------- 7/31/96 10000 10000 10000 10000 10228 10170 10157 10064 12/96 10517 10467 10462 10210 10740 10424 10403 10189 11124 10786 10785 10306 11512 11128 11144 10443 12/97 11723 11341 11472 10084 11994 11533 11650 10124 12043 11762 11922 10087 12030 12232 12427 10494 12/98 12141 12282 12468 10011 12061 12283 12407 9796 12426 12183 12298 9675 12028 12269 12381 9527 12/99 11446 12302 12366 9184 11930 12454 12639 9239 12643 12635 12859 9368 13017 13040 13247 9474 12/00 13338 13466 13804 9620 14064 14001 14223 10312 14530 14142 14303 10153 14776 14730 14962 10510 12/01 15089 14781 14969 10414 15289 14756 14983 10334 15710 15225 15537 10827 16020 15863 16249 11593 12/02 16275 16280 16504 11312 16599 16647 16734 11326 17494 17316 17153 11302 17382 17337 17128 11181 12/03 17956 17405 17182 11290 18632 17896 17638 11541 17763 17392 17207 11153 18633 17977 17758 11427 12/04 19198 18115 17927 11499 18773 17904 17841 11320 19470 18398 18378 11430 19498 18302 18254 11362 12/05 19569 18373 18363 11322 19871 18276 18244 11360 19738 18286 18230 11415 7/31/06 20087 18514 18476 11493
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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Intermediate Credit Bond Index, the Lehman Brothers Aggregate Bond Index and the Lipper Flexible Income Funds Average. The Lehman Brothers Intermediate Credit Bond Index is generally representative of investment grade corporate bonds with maturities from one to ten years. The Lehman Brothers Aggregate Bond Index is generally representative of the bond market as a whole. The Lipper Flexible Income Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Credit Bond Index and the Lehman Brothers Aggregate Bond Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Flexible Income Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The Ending Value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 35 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- DIVIDEND GROWTH FUND (FORMERLY KNOWN AS FIFTH THIRD SELECT STOCK FUND) -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Dividend Growth Fund (Institutional Shares) gained 5.14% on a net of fee basis, trailing its benchmark, the S&P 500(R) Index, which returned 5.38%. The Fund changed its benchmark index from the Russell 1000(R) Index to the S&P 500(R) Index, effective August 1, 2005, in order to better represent the Fund's investment policies for comparison purposes. Equity investors adopted a more cautionary stance beginning in mid-May as concerns over a slowing economy blossomed. The shifting mindset prompted a significant change in market leadership as traditionally defensive sectors, or those consistently known for reliable and steady earnings, replaced groups that thrive in periods of strong economic growth. Among the market's leaders were the telecommunication services and utilities sectors, previously out-of-favor groups which offered attractive dividend yields. Due to an emphasis on high quality companies, however, the Fund had no exposure to either group for the majority of the period--a stance which diminished performance. Although the insistence on consistency in growth in earnings and dividends may occasionally detract from returns, it's a proven strategy for generating investment gains through a wide range of economic cycles. Also weighing on results was an underweight position, relative to the benchmark, in the top-performing energy sector, although the Fund's exposure was increased throughout the period as opportunities arose.+ Bolstering gains were underweight stakes in the information technology (IT) and consumer discretionary sectors, which both sagged in the broader move away from economically sensitive stocks. Overweight positions in the consumer staples and industrials groups also proved advantageous as select food, beverage, tobacco and diversified manufacturing companies outperformed.+ By the period's end, the Fund's stake in the IT and staples sectors had been expanded and its exposure to discretionary names--especially retailers--was trimmed. Additionally, its positioning within the financial services sector was better balanced between brokerages and large banks.+ -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 --------- ------- --------- --------- Institutional Shares 5.14% -2.17% 3.03% $13,484 -------------------------------------------------------------------------------- Class A Shares* -0.19% -3.37% 2.32% $12,582 -------------------------------------------------------------------------------- Class B Shares** -0.87% -3.64% 2.08% $12,285 -------------------------------------------------------------------------------- Class C Shares** 4.22% -3.12% 2.08% $12,290 -------------------------------------------------------------------------------- Advisor Shares*** 1.18% -3.30% 2.24% $12,475 -------------------------------------------------------------------------------- S&P 500(R) Index 1 5.38% 2.82% 8.88% $23,405 -------------------------------------------------------------------------------- Russell 1000(R) Index 5.23% 3.45% 9.12% $23,943 -------------------------------------------------------------------------------- Lipper Large-Cap Core Funds Average 1 3.77% 1.40% 7.18% $20,548 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO MARCH 6, 1998 THE QUOTED PERFORMANCE OF THE DIVIDEND GROWTH FUND REFLECTS THE PERFORMANCE OF THE CLASS A SHARES OF THE PINNACLE FUND. THE INCEPTION DATES FOR THE INSTITUTIONAL, CLASS B, CLASS C AND ADVISOR SHARES OF THE FUND ARE AUGUST 11, 1998, OCTOBER 11, 2000, MARCH 9, 1998 AND AUGUST 1, 2005, RESPECTIVELY. PRIOR TO SUCH DATES, QUOTED PERFORMANCE REFLECTS THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- Exxon Mobil Corp....................................................... 4.03% PepsiCo, Inc........................................................... 3.95% United Technologies Corp............................................... 3.71% Wells Fargo & Co....................................................... 3.60% Johnson & Johnson...................................................... 3.48% Procter & Gamble Co.................................................... 3.48% General Electric Corp.................................................. 3.36% Wachovia Corp.......................................................... 2.88% Becton, Dickinson & Co................................................. 2.76% Citigroup, Inc......................................................... 2.65% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 36 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- DIVIDEND GROWTH FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART]
Fifth Third Dividend Growth Fund Russell 1000(R) Lipper Large-Cap (Institutional Shares) Index S&P 500 Index Core Funds Average ---------------------- --------------- ----------------- -------------------- 7/31/96 10000 10000 10000 10000 10811 10850 10785 10802 12/96 11152 11716 11684 11555 11259 11897 11998 11690 13377 13897 14090 13539 14494 15110 15146 14675 12/97 15104 15564 15580 14875 17482 17645 17752 16726 17794 18087 18341 17084 16072 16222 16521 15148 12/98 20079 19770 20036 18289 20841 20586 21034 18969 21394 22052 22514 20293 20294 20596 21112 18970 12/99 22416 23905 24250 21801 23218 24948 24806 22610 22393 24092 24147 22063 21380 24264 23913 22106 12/00 17987 22043 22043 20557 14632 19273 19431 18129 15282 20489 20568 19114 12943 17368 17550 16230 12/01 14065 19298 19425 18000 13681 19441 19479 17982 11637 16825 16871 15674 9729 13979 13958 13147 12/02 9889 15120 15134 14041 9510 14675 14657 13538 10527 16985 16912 15454 10556 17494 17360 15823 12/03 11903 19639 19472 17631 12245 20013 19802 17860 12263 20294 20142 18055 11271 19926 19766 17600 12/04 12440 21879 21590 19157 11737 21462 21126 18772 12015 21902 21415 19014 12612 22767 22187 19750 12/05 12996 23250 22649 20227 13438 24294 23602 21043 13245 23891 23262 20552 7/31/06 13484 23943 23405 20548
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.53.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(R) Index, the Russell 1000(R) Index and the Lipper Large-Cap Core Funds Average. The Fund changed its benchmark index from the Russell 1000(R) Index to the S&P 500(R) Index, effective August 1, 2005, in order to better represent the Fund's investment policies for comparison purposes. The S&P 500(R) Index measures the performance of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. The Russell 1000(R) Index measures the performance of the 1,000 largest companies in the Russell 3000(R) Index which represents approximately 92% of the total market capitalization of the Russell 3000(R) Index. The Russell 1000(R) Growth Index measures the performance of those Russell 1000(R) companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The S&P 500(R) Index and the Russell 1000(R) Index are unmanaged and do not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 37 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- TECHNOLOGY FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Technology Fund (Institutional Shares) returned 1.00% on a net of fee basis, outperforming to its benchmark, the Merrill 100 Lynch Technology Index, which advanced 0.60%. Eying rising interest rates and growing inflationary pressures, investors exited cyclical stocks through the final three months of the period and moved into more defensive positions. Caught up in the broader rotation, the information technology sector endured a fall that erased virtually all of the gains it recorded through the first nine months of the period. In addition to the macro issues, tech companies contended with seasonal weaknesses and worries about slowing demand through the final quarter of the period. Much of the concern over demand focused on consumers as higher interest rates and energy prices took a toll, although uncertainties over business spending plans emerged as well. Further exacerbating woes were acknowledgments of heightened competitive pressures and product delays from some of the sector's high-profile blue chip companies. Aiding the Fund's performance were holdings within the software and services group which develop specialized products for specific needs. Similarly, tightly focused biotechnology positions proved advantageous.+ Detracting from performance was a lack of exposure to consumer-oriented companies that are in the midst of turnarounds. As the Fund wasn't invested in the companies when they were struggling, it didn't participate in the recent rebound. In addition, holdings in the communications equipment space faltered.+ At the period's end, a renewed discipline in avoiding companies that weren't executing reinforced the Fund's preference for companies possessing the potential for accelerating earnings. The approach led to a modestly larger stake in mid cap companies, which tend to offer a higher likelihood of greater earnings growth than larger companies while exhibiting less volatility than smaller issues. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND'S VALUE AND ITS RETURNS MAY BE CONSIDERABLY MORE VOLATILE AND POSE GREATER RISKS DUE TO THE NATURE OF THE TECHNOLOGY SECTOR (SHORT PRODUCT CYCLES, PRICE COMPETITION, OBSOLESCENCE OF EXISTING TECHNOLOGY) THAN THE VALUES AND RETURNS OF OTHER MUTUAL FUNDS INVESTED IN A BROADER RANGE OF INDUSTRIES AND COMPANIES. THE FUND COULD FLUCTUATE IN PRICE MORE THAN MOST FUNDS, DUE TO THE VOLATILE NATURE OF THE TECHNOLOGY SECTOR. EQUITY SECURITIES (STOCKS) ARE MORE VOLATILE AND CARRY MORE RISK THAN OTHER FORMS OF INVESTMENTS, INCLUDING INVESTMENTS IN HIGH-GRADE FIXED INCOME SECURITIES. THE NET ASSET VALUE PER SHARE OF THIS FUND WILL FLUCTUATE AS THE VALUE OF THE SECURITIES IN THE PORTFOLIO CHANGES. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- INCEPTION SINCE ENDING DATE 1 YEAR 5 YEAR INCEPTION VALUE 2 --------- -------- -------- --------- --------- Institutional Shares 6/5/00 1.00% -0.61% -10.43% $5,077 -------------------------------------------------------------------------------- Class A Shares* 6/5/00 -4.25% -1.87% -11.39% $4,752 -------------------------------------------------------------------------------- Class B Shares** 6/5/00 -4.89% -1.98% -11.28% $4,789 -------------------------------------------------------------------------------- Class C Shares** 6/5/00 0.11% -1.59% -11.32% $4,774 -------------------------------------------------------------------------------- Advisor Shares*** 6/5/00 -2.68% -1.77% -11.36% $4,763 -------------------------------------------------------------------------------- Merrill Lynch 100 Technology Index 1 0.60% -0.71% -11.48% $4,715 -------------------------------------------------------------------------------- Lipper Science and Technology Funds Average 1 -2.67% -3.78% -12.87% $4,606 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. THE INCEPTION DATE FOR THE INSTITUTIONAL, CLASS A AND CLASS C SHARES OF THE TECHNOLOGY FUND IS JUNE 5, 2000. THE INCEPTION DATE FOR CLASS B AND ADVISOR SHARES IS OCTOBER 11, 2000 AND OCTOBER 29, 2001, RESPECTIVELY. THE QUOTED PERFORMANCE PRIOR TO THE INCEPTION OF CLASS B AND ADVISOR SHARES IS BASED ON THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS+ -------------------------------------------------------------------------------- Comverse Technology, Inc............................................... 2.67% Cadence Design Systems, Inc............................................ 2.24% Freescale Semiconductor, Inc., Class A................................. 2.11% International Game Technology.......................................... 2.11% Symbol Technologies, Inc............................................... 2.10% Lexmark International, Inc............................................. 2.05% BEA Systems, Inc....................................................... 2.02% GameStop Corp., Class A................................................ 2.01% Cephalon, Inc.......................................................... 1.88% Microsoft Corp......................................................... 1.82% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 38 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- TECHNOLOGY FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Merrill Lynch Lipper Science Technology Fund 100 Technology and Technology (Institutional Shares) Index Funds Average ---------------------- --------------- ---------------- 6/5/00 10000 10000 10000 10185 11377 11538 9895 10948 11208 12/00 7413 6649 7391 4925 4655 5123 5743 5372 5710 3709 3176 3695 12/01 4951 4485 4876 4542 4351 4547 3058 3018 3362 2114 2069 2550 12/02 2871 2622 2944 2887 2617 2920 4073 3404 3594 4628 3821 3956 12/03 5405 4426 4440 5375 4491 4492 5026 4503 4487 4214 4002 4043 12/04 5031 4742 4676 4552 4355 4290 4703 4389 4438 5163 4819 4769 12/05 5410 5021 4954 6177 5468 5304 5380 4974 4825 7/31/06 5077 4715 4606 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Merrill Lynch 100 Technology Index and the Lipper Science and Technology Funds Average. The Merrill Lynch 100 Technology Index is an equal-dollar weighted index of 100 stocks designed to measure the performance of a cross-section of large, actively traded technology stocks and American Depository Receipts. The Lipper Science and Technology Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Merrill Lynch 100 Technology Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Science and Technology Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class from its inception to the period ended July 31, 2006. 39 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third International Equity Fund (Institutional Shares) advanced 23.86% on a net of fees basis, underperforming its benchmark, the MSCI EAFE(R) Index, which gained 24.51%. While investors grappled with the slowing pace of global economic growth, inflationary pressures, high oil prices and geopolitical uncertainty, Asian equities proved most rewarding during the period as Japan returned 33.8%, and Asia excluding Japan gained 26.0%. Europe modestly trailed the benchmark, posting a 23.2% advance. Within the Fund, an emphasis on Germany diminished returns from European holdings, as did an underweight position, relative to the benchmark, in the euro, which gained against the U.S. dollar. Overweight stakes in Hong Kong and Singapore--two Asian laggards--also detracted from performance. + The Fund benefited from its significant exposure to Japan, where resilience in the economic recovery lifted equities most notably during the first portion of the period. Indicators such as double-digit increases in machinery orders and an uptick in bank lending buoyed optimism about the economy, although some investors worried about the potential impact of a global slowdown. Considering domestic developments such as a healthy real estate market, steady job growth and solid gains in corporate revenues, the Fund maintained its stake. + Further enhancing gains was a modest position in emerging markets, which rallied 28.4% as a group, and underweight stakes in two European underperformers--the United Kingdom and Italy. + At the period's end, economic growth appeared to be easing worldwide, but not dramatically. Meanwhile, although inflationary pressures continued to gain traction, the efforts of the U.S. Federal Reserve, the European Central Bank, the Bank of Japan and the Chinese government were all focused on tempering inflationary expectations with proactive measures. Against this backdrop, the outlook for equities remained good. -------------------------------------------------------------------------------- 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, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 23.86% 9.30% 7.22% $20,071 -------------------------------------------------------------------------------- Class A Shares* 17.34% 8.03% 6.49% $18,758 -------------------------------------------------------------------------------- Class B Shares** 17.59% 7.93% 6.18% $18,221 -------------------------------------------------------------------------------- Class C Shares** 22.61% 8.21% 6.29% $18,409 -------------------------------------------------------------------------------- Advisor Shares*** 19.20% 8.15% 6.43% $18,643 -------------------------------------------------------------------------------- MSCI EAFE(R) Index 1 24.51% 11.07% 7.17% $19,996 -------------------------------------------------------------------------------- Lipper International Large-Cap Core Funds Average 1 22.48% 8.10% 6.65% $19,448 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 5.00%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. CLASS A SHARES WERE INITIALLY OFFERED ON AUGUST 18, 1994. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 11, 2000 AND APRIL 25, 1996, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON OCTOBER 9, 1998. THE PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON NOVEMBER 10, 2003. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR THE PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- BP PLC................................................................. 1.91% Toyota Motor Corp...................................................... 1.66% Glaxosmithkline PLC.................................................... 1.40% HSBC Holdings PLC...................................................... 1.34% Total SA............................................................... 1.12% Mitsubishi Tokyo Financial Group....................................... 1.07% Royal Dutch Shell PLC.................................................. 1.06% Nestle................................................................. 1.03% AstraZeneca PLC........................................................ 0.91% Novartis AG, Registered................................................ 0.90% + Portfolio composition is subject to change. 40 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Lipper International International Equity Fund Large-Cap (Institutional MSCI EAFE(R) Core Funds Shares) Index Average -------------- ------------ ------------- 7/31/96 10000 10000 10000 10335 10293 10375 12/96 10561 10465 10848 10561 10308 10991 11935 11654 12300 11986 11579 12509 12/97 11402 10680 11604 13192 12259 13346 13500 12398 13478 11896 10643 11292 12/98 13620 12852 13227 13789 13040 13545 14070 13380 14245 14588 13976 14766 12/99 17176 16360 18442 16770 16352 18658 16205 15714 17799 15135 14455 16291 12/00 14730 14077 15545 13065 12154 13366 12993 12049 13310 11670 10368 11291 12/01 12093 11092 12235 12280 11206 12353 12122 10939 11946 9945 8785 9508 12/02 10428 9355 10114 9558 8595 9221 11095 10276 10834 11907 11117 11539 12/03 13897 13019 13342 14118 13592 13807 14324 13652 13659 14118 13621 13577 12/04 16115 15713 15504 15935 15698 15376 15755 15580 15253 17527 17206 16954 12/05 18366 17916 17733 20040 19613 19421 19868 19797 19312 7/31/06 20071 19996 19448 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)(R) Index and the Lipper International Large-Cap Core Funds Average. The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)(R) Index is generally representative of a sample of companies of the market structure of 20 European and Pacific Basin countries. The Lipper International Large-Cap Core Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The MSCI EAFE(R) Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper International Large-Cap Core Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2006. 41 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- HIGH YIELD BOND FUND -------------------------------------------------------------------------------- From inception on November 29, 2005, through July 31, 2006, the Fifth Third High Yield Bond Fund (Institutional Shares) returned 1.59% on a net of fee basis, lagging its benchmark, the Merrill Lynch High Yield Master Index, which returned 5.06%. Much of the underperformance stemmed from two factors: the Fund's higher quality discipline in a market driven by low-quality issues and its underweight stake, relative to the benchmark, in automotive-related debt. The market's appetite for riskier, low-quality bonds reflected investors' more speculative mindset and a desire for higher yields. Although demand cooled somewhat in the final two months, the riskiest issues--those rated CCC--ended with an average return of 9.76% in the abbreviated period since the Fund's inception. Auto-industry bonds, primarily those issued by General Motors and Ford, currently account for over 13% of the benchmark. Since such a weighting is inappropriate for a well-diversified high yield bond portfolio, the Fund maintained a significantly smaller position during the period. Yet as the group advanced 17.24% since the Fund's inception, the Fund's performance suffered. + Underperformance within the utilities, healthcare and energy sectors--all traditionally considered defensive in nature-- further diminished returns during the period. Along with the market's distaste for more conservative investments, many of the Fund's holdings within these areas are sensitive to interest rate moves and struggled as rates generally moved higher. + Considering such circumstances, it's important to remember that the Fund is designed to generate solid returns in an up market and protect principal investments as much as possible in a down market. Accordingly, bets on low-quality bonds, which are historically more volatile, and oversized positions in any sector are ill advised. In keeping with its overarching investment philosophy, the Fund at the end of the period remained thoughtfully structured to deliver optimal risk-adjusted returns with reduced volatility. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AGGREGATE TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- SINCE ENDING INCEPTION DATE INCEPTION VALUE 2 ---------------- ----------- --------- Institutional Shares 11/29/05 1.59% $10,159 -------------------------------------------------------------------------------- Class A Shares* 11/29/05 -3.39% $ 9,661 -------------------------------------------------------------------------------- Class B Shares** 11/29/05 -3.96% $ 9,604 -------------------------------------------------------------------------------- Class C Shares** 11/29/05 -0.03% $ 9,997 -------------------------------------------------------------------------------- Advisor Shares*** 11/29/05 -2.07% $ 9,793 -------------------------------------------------------------------------------- Merrill Lynch High Yield Master Index 1 5.07% $10,507 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] Corporate Bonds 86.20% Short-Term Securities Held as Collateral for Securities Lending 7.40% Investments in Affiliates 6.40% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 42 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- HIGH YIELD BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- Fifth Third High Yield Merrill Lynch Bond Fund High Yield (Institutional Shares) Master Index ---------------------- ------------- 11/29/05 10000 10000 10000 10000 12/05 10002 10092 10147 10253 10208 10318 3/06 10231 10380 10247 10442 10180 10434 6/06 10094 10396 7/31/06 10159 10507 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.53.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 is 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, 2006. 43 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Bond Fund (Institutional Shares) returned 1.21% on a net of fee basis, trailing its benchmark, the Lehman Brothers Aggregate Bond Index, which advanced 1.46%. The Federal Reserve's tightening cycle reached the two-year mark during the period as it pushed its key overnight rate from 3.25% to 5.25%. The Fed's moves inspired higher rates along the yield curve, but as short-term rates rose faster than long-term yields, the curve flattened and actually inverted for a portion of the period. In such cases when long-term rates lag short-term yields, it's advisable to maintain a barbell strategy, which emphasizes holdings at each end of the yield curve. As the Fund relied more upon a bulleted structure, which consists of larger positions in the middle of the curve, its performance sagged. The bulleted strategy was employed in anticipation of a normalized yield curve--featuring lower yields at the short end and higher rates at the long end - and was still in place at the period's close. + Aiding performance during the period were overweight positions, relative to the benchmark, in asset backed securities (ABS) and commercial mortgage backed securities (CMBS). Consisting primarily of home equity loans originating 3-5 years ago--before the rapid acceleration in housing values--the Fund's ABS exposure saw minimal reaction to the cooling of the housing market. + Within the CMBS space, the solid fundamental health of the commercial real estate market, which featured low delinquency and foreclosure rates, bolstered the Fund's holdings. Non-traditional fixed income investors such as hedge funds further boosted values in the CMBS market. + Underweight stakes in corporate bonds, which were richly valued considering the uncertain fallout from the Fed's rate hikes, and government agency issues, especially in mortgage-backers Fannie Mae and Freddie Mac which are still sorting out sticky accounting issues, also enhanced relative performance. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.21% 3.94% 5.79% $17,551 -------------------------------------------------------------------------------- Class A Shares* -3.81% 2.71% 5.05% $16,363 -------------------------------------------------------------------------------- Class B Shares** -4.61% 2.55% 4.73% $15,868 -------------------------------------------------------------------------------- Class C Shares** 0.30% 2.92% 4.73% $15,882 -------------------------------------------------------------------------------- Advisor Shares*** -2.60% 2.76% 4.91% $16,145 -------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond Index 1 1.46% 4.79% 6.33% $18,476 -------------------------------------------------------------------------------- Lipper Corporate Debt Funds A Rated Average 1 0.78% 4.34% 5.75% $17,516 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH 20, 1995. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FIGURES FOR THE FIFTH THIRD BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INCOME FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MARCH 22, 1995, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] Corporate Bonds 52.77% U.S. Government Agencies 37.42% Commercial Paper 5.83% Investments in Affiliates 2.52% Foreign Bonds 0.71% U.S. Treasury Obligations 0.51% Short-Term Securities Held as Collateral for Securities Lending 0.24% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 44 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Lehman Brothers Lipper Corporate Bond Fund Aggregate Bond Debt Funds A (Institutional Shares) Index Rated Average ---------------------- --------------- ---------------- 7/31/96 10000 10000 10000 10158 10157 10156 12/96 10540 10462 10498 10309 10403 10386 10787 10785 10777 11279 11144 11177 12/97 11652 11472 11525 11831 11650 11686 12134 11922 11984 12660 12427 12422 12/98 12734 12468 12404 12535 12407 12271 12273 12298 12085 12265 12381 12105 12/99 12173 12366 12045 12544 12639 12329 12616 12859 12429 13021 13247 12785 12/00 13623 13804 13275 14077 14223 13704 14097 14303 13764 14836 14962 14298 12/01 14610 14969 14310 14461 14983 14262 15076 15537 14733 15789 16249 15377 12/02 15986 16504 15625 16196 16734 15869 16517 17153 16415 16467 17128 16351 12/03 16498 17182 16423 16894 17638 16879 16460 17207 16401 16954 17758 16941 12/04 17105 17927 17135 17056 17841 17065 17527 18378 17573 17386 18254 17414 12/05 17466 18363 17492 17362 18244 17348 17319 18230 17293 7/31/06 17551 18476 17516 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Average. The Lehman Brothers Aggregate Bond Index is representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The Lipper Corporate Debt Funds A Rated Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Aggregate Bond Index is an unmanaged index and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Corporate Debt Funds A Rated Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2006. 45 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- INTERMEDIATE BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Intermediate Bond Fund (Institutional Shares) returned 1.76% on a net of fee basis, slightly underperforming its benchmark, the Lehman Brothers Intermediate Government/Credit Bond Index, which advanced 1.78%. While the Federal Reserve steadily increased its overnight lending rate, using a series of quarter-point moves to lift the key rate from 3.25% to 5.25% over the period, longer-term bonds posted modest increases in yields. The disconnect between the central bank, which cited inflationary pressures, and investors, who feared the moves would lead to an economic slowdown, resulted in a slightly inverted yield curve. Such a condition, which exists when short-term yields are higher than long-term rates, is counterintuitive and challenging for fixed income investors. To attempt to overcome this market challenge, the Fund's holdings were focused on better quality, higher yielding bonds such as commercial mortgage backed securities (CMBS), residential mortgage backed securities (RMBS) and asset backed securities (ABS). Among CMBS holdings, those holding the highest credit ratings outperformed, as did "seasoned" issues--10-year bonds issued three or four years ago. Hybrid adjustable rate mortgages led the Fund's RMBS exposure while home equity loans were used for ABS holdings. + Also providing a lift were select investments in U.S. dollar denominated overseas energy and commodity metals production companies. Originally sold at a larger discount than U.S. investment grade corporate bonds, these positions performed well, benefiting from the upward trend of energy and metal prices. + Weighing on performance were the Fund's holdings in U.S. Treasury issues, government agency bonds and investment grade corporate investments, which were all underweight relative to the benchmark. Treasuries and agency bonds struggled as the entire yield curve rose while increased leveraged buyout activity took a selective toll on bonds issued by corporations perceived to be potential targets. + At the period's end, the Fund was defensively positioned with a neutral duration profile, which is suited for an uncertain interest rate environment. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.65% 3.63% 5.20% $16,609 -------------------------------------------------------------------------------- Class A Shares* -2.11% 2.63% 4.57% $15,632 -------------------------------------------------------------------------------- Class B Shares** -3.37% 2.64% 4.33% $15,280 -------------------------------------------------------------------------------- Class C Shares** 0.72% 2.60% 4.14% $14,999 -------------------------------------------------------------------------------- Advisor Shares*** -0.85% 2.74% 4.48% $15,504 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government/ Credit Bond Index 1 1.78% 4.42% 5.89% $17,730 -------------------------------------------------------------------------------- Lipper Intermediate Investment Grade Debt Funds Average 1 1.08% 4.15% 5.60% $17,281 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 3.50%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD INTERMEDIATE BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF NOVEMBER 2, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD INTERMEDIATE BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF NOVEMBER 25, 1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B, CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST, 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] Corporate Bonds 80.32% U.S. Government Agencies 11.72% Short-Term Securities Held as Collateral for Securities Lending 4.32% Investments in Affiliates 3.44% Foreign Bonds 0.20% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 46 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- INTERMEDIATE BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Lehman Brothers Fifth Third Intermediate Lipper Intermediate Intermediate Bond Fund Government/Credit Investment Grade (Institutional Shares) Bond Index Debt Funds Average ----------------------- ----------------- ------------------- 7/31/96 10000 10000 10000 10146 10147 10168 12/96 10405 10396 10481 10339 10384 10429 10675 10690 10797 10980 10979 11152 12/97 11215 11214 11427 11391 11389 11608 11606 11603 11855 12036 12124 12252 12/98 12074 12160 12279 12003 12137 12222 11871 12089 12077 11960 12200 12133 12/99 11926 12207 12121 12138 12390 12345 12294 12600 12489 12655 12963 12836 12/00 13088 13442 13320 13524 13897 13732 13621 13991 13780 14265 14634 14353 12/01 14179 14647 14330 14071 14614 14300 14575 15134 14684 15147 15819 15221 12/02 15400 16087 15494 15607 16330 15733 15949 16774 16162 15863 16771 16144 12/03 15826 16781 16218 16184 17196 16611 15756 16762 16212 16144 17215 16693 12/04 16228 17291 16866 16086 17140 16774 16462 17566 17217 16374 17474 17117 12/05 16430 17564 17191 16412 17496 17098 16437 17533 17064 7/31/06 16609 17730 17281 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Intermediate Government/Credit Bond Index and the Lipper Intermediate Investment Grade Debt Funds Average. The Lehman Brothers Intermediate Government/Credit Bond Index is composed of investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury agencies. The debt issues within the index all maintain maturities within a range of one to ten years. The Lipper Intermediate Investment Grade Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Government/Credit Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Intermediate Investment Grade Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 47 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- SHORT TERM BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Short Term Bond Fund (Institutional Shares) returned 2.86% on a net of fee basis, narrowly trailing its benchmark, the Merrill Lynch 1-3 Year Government/Corporate Bond Index, which advanced 3.00%. Fueled by persistently high energy prices, concerns over inflationary pressures prompted the Federal Reserve to extend its rate-hike campaign throughout the period, moving its overnight lending rate from 3.25% to 5.25%. The steady push, which consisted of eight consecutive quarter-point bumps, ran rates higher than many observers expected at the outset of the period. It also led some to question whether the central bank moved too far. Contributing to the mixed sentiments were the actions of new Fed chair Ben Bernanke, who appeared determined to shake his pre-appointment reputation as an inflation dove, or one who would opt for fewer rate hikes. Until the markets grow comfortable with his approach to the economy and monetary policy, wariness between investors and Bernanke will likely linger. As rates advanced, Treasury issues struggled and weighed on the Fund's performance, although an underweight position, relative to the benchmark, minimized the damage. + Boosting returns were stakes in select commercial mortgage backed securities (CMBS) and asset backed securities (ABS). Among CMBS holdings, high quality bonds originally issued in the 1990s--called "seasoned" due to their age--outperformed while providing enhanced yields. Similarly, better yielding ABS issues tied to home equity loans proved advantageous. + Positioned for much of the period with a short duration, relative to the benchmark, the Fund managed to mitigate much of the impact of the rise in short-term rates. By the period's end, however, the duration had been adjusted closer to neutral, reflecting the expectation that Fed activity was nearing its end. Holdings also emphasized the mid-point of the short-term universe -- 2-year issues -- in anticipation of a more normalized interest rate environment where long-term yields run higher than short-term yields. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 2.75% 2.70% 4.49% $15,520 -------------------------------------------------------------------------------- Class A Shares* -1.00% 1.78% 3.96% $14,743 -------------------------------------------------------------------------------- Class C Shares** 1.81% 1.68% 3.46% $14,048 -------------------------------------------------------------------------------- Advisor Shares*** 0.15% 1.77% 3.76% $14,469 -------------------------------------------------------------------------------- Merrill Lynch 1-3 Year Government/Corporate Bond Index 1 3.00% 3.34% 5.04% $16,351 -------------------------------------------------------------------------------- Lipper Short Investment Grade Debt Funds Average 1 2.74% 2.84% 4.46% $15,481 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 3.50%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE 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 AND ADVISOR SHARES WERE INITIALLY OFFERED ON AUGUST 1, 2003 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS C AND ADVISOR SHARES FOR THE PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] Corporate Bonds 50.33% U.S. Government Agencies 25.52% Short-Term Securities Held as Collateral for Securities Lending 13.65% U.S. Treasury Obligations 7.87% Investments in Affiliates 1.88% Foreign Bonds 0.46% Municipal Bonds 0.29% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 48 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- SHORT TERM BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Lipper Short Fifth Third Short Term Merrill Lynch 1-3 Year Investment Bond Fund Government/Corporate Grade Debt (Institutional Shares) Bond Index Funds Average ---------------------- ---------------------- ------------- 7/31/96 10000 10000 10000 10124 10126 10124 12/96 10309 10320 10318 10340 10391 10381 10575 10622 10601 10791 10832 10813 12/97 10970 11011 10966 11119 11176 11119 11271 11350 11281 11553 11687 11555 12/98 11644 11783 11611 11721 11868 11707 11748 11938 11742 11881 12083 11861 12/99 11936 12166 11942 12072 12317 12083 12271 12524 12266 12566 12806 12534 12/00 12905 13147 12825 13271 13529 13183 13418 13705 13337 13846 14181 13734 12/01 13925 14293 13770 13863 14295 13784 14150 14640 14032 14440 14986 14286 12/02 14598 15164 14419 14720 15295 14544 14834 15464 14698 14895 15540 14730 12/03 14894 15580 14759 15026 15754 14914 14864 15577 14759 14993 15753 14915 12/04 15004 15768 14949 14966 15725 14914 15138 15918 15080 15162 15939 15107 12/05 15252 16045 15192 15321 16122 15276 15416 16228 15372 7/31/06 15520 16351 15481 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Merrill Lynch 1-3 Year Government/Corporate Bond Index and the Lipper Short Investment Grade Debt Funds Average. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is composed of U.S. Treasury issues and publicly issued debt of U.S. Government agencies with maturities of one to three years. The Lipper Short Investment Grade Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Merrill Lynch 1-3 Year Government/Corporate Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Short Investment Grade Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 49 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third U.S. Government Bond Fund (Institutional Shares) returned 1.91% on a net of fee basis, underperformed its benchmark, the Lehman Brothers Intermediate Government Bond Index, which gained 1.99%. The realization that new Federal Reserve chair Ben Bernanke would extend Alan Greenspan's rate-hike campaign in an effort to fend off inflation rattled the fixed income markets in early 2006. Concerns over how far Bernanke would go prompted investors to sell off riskier issues such as mortgage-related bonds with longer maturation dates. The heightened volatility adversely affected the Fund, which held a number of underperforming long-dated mortgage backed securities. The situation was exacerbated by extremely high demand for high quality, short-dated mortgage-backed debt, which tends to offer better yields than Treasury issues. As the supply of such bonds was relatively small, any available issues commanded premium prices. + Due in part to the mortgage-related positioning, the Fund's duration stood at a neutral stance, relative to the benchmark, for much of the period. Ideal for periods with a normalized yield curve, featuring higher long-term rates than short-term yields, the strategy shift followed a lengthy stretch where the Fund maintained a short duration designed to mitigate the affect of the rising short-term rates. + Bolstering performance were structured mortgage-backed bonds that pay back investors from the interest component of real estate loans. The issues offer slightly better yields to account for the prepayment risk of the underlying mortgages, but when short-term rates steadily rise, refinancing activity eases, which helps such interest-only issues. + Also adding to returns were high quality bonds with floating yields. Generally adjusted monthly, these issues offered a near-immediate hike in interest income as the Fed moved its key overnight rate from 3.25% to 5.25% in eight consecutive meetings during the period. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S PORTFOLIO AND NOT THE FUNDS SHARES. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.91% 3.47% 4.97% $16,237 -------------------------------------------------------------------------------- Class A Shares* -3.15% 2.24% 4.26% $15,178 -------------------------------------------------------------------------------- Class C Shares** 0.86% 2.44% 4.00% $14,797 -------------------------------------------------------------------------------- Advisor Shares*** -1.86% 2.31% 4.17% $15,052 -------------------------------------------------------------------------------- Lehman Brothers Intermediate Government Bond Index 1 1.99% 3.95% 5.58% $17,209 -------------------------------------------------------------------------------- Lipper Short-Intermediate U.S. Government Bond Funds Average 1 1.62% 3.09% 4.71% $15,866 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON AUGUST 11, 1998. THE PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES. CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON APRIL 24, 1996 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- FUND HOLDINGS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] Freddie Mac 28.35% Fannie Mae 16.62% Government National Mortgage Association 12.51% Investments in Affiliates 10.65% Financing Corporation 9.02% Small Business Administration 6.33% Federal Home Loan Bank 6.08% U.S. Treasury Obligations 4.98% Corporate Bonds 3.56% Tennessee Valley Authority 1.90% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 50 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Lehman Brothers Lipper Short- Fifth Third U.S. Intermediate Intermediate U.S. Government Bond Fund Government Bond Government Bond (Institutional Shares) Index Funds Average ---------------------- --------------- ----------------- 7/31/96 10000 10000 10000 10141 10141 10127 12/96 10333 10375 10338 10322 10373 10361 10589 10662 10607 10852 10935 10844 12/97 11070 11177 11041 11239 11346 11186 11423 11555 11359 11897 12095 11760 12/98 11901 12125 11798 11863 12092 11811 11809 12068 11756 11921 12190 11855 12/99 11922 12184 11879 12056 12383 12031 12251 12609 12222 12593 12947 12520 12/00 13053 13460 12931 13428 13864 13273 13459 13922 13352 14109 14613 13935 12/01 14053 14593 13910 13974 14555 13921 14489 15117 14367 15155 15845 14883 12/02 15286 16000 15022 15428 16148 15140 15635 16421 15321 15550 16399 15267 12/03 15514 16366 15254 15808 16727 15510 15453 16342 15212 15755 16711 15479 12/04 15824 16748 15525 15729 16634 15439 16066 17018 15704 16017 16929 15641 12/05 16073 17030 15698 16037 16979 15685 16080 17031 15723 7/31/06 16237 17209 15866 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Intermediate Government Bond Index and the Lipper Short-Intermediate U.S. Government Bond Funds Average. The Lehman Brothers Intermediate Government Bond Index is generally representative of intermediate-term government bonds. The Lipper Short-Intermediate U.S. Government Bond Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Intermediate Government Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Short-Intermediate U.S. Government Bond Funds Average and the Fund's performance reflect the deduction for fees for these value-added services Investors cannot invest directly in an index, although they can invest in the underlying securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 51 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MUNICIPAL BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Municipal Bond Fund (Institutional Shares) returned 1.49% on a net of fee basis, trailing its benchmark, the Lehman Brothers Municipal Bond Index, which returned 2.55%. Taking cues from the U.S. Treasury market, where short-term yields rose faster than long-term rates, the municipal bond yield curve flattened during the period. For example, the average yield on a 3-year municipal bond increased 70 basis points (0.70%), while the average yield on a 30-year municipal bond increased 12 basis points (0.12%). By comparison, the Federal Reserve raised its overnight rate from 3.25% to 5.25% during the period--a far more dramatic move than among Treasury debentures dated 2 years and up, where increases were restrained by concerns over an economic slowdown. At the start of the period, the Fund's duration was short of the benchmark--a position designed to mitigate the impact of rising short-term interest rates. Over the course of the 12-months, however, the position was adjusted back to neutral and finished slightly longer than the benchmark. Although this helped in July as fixed income markets rallied on the belief that the Fed had completed its rate-hike campaign, an underweight stake at the longest end of the yield curve affected returns. + The outperformance by low-quality issues, especially in tobacco-related bonds, also affected gains as, given the Fund's high-quality orientation, it held no tobacco-related issues. + The Fund's long-term issues enhanced returns and better yielding opportunities arose among A-rated issues, especially within the healthcare sector. + From a supply standpoint, 2006 has been tighter than 2005, with issuance down about 15% through the first six months. Much of the decrease may be attributed to the 52% drop in pre-refunded bonds, or new issues featuring better terms which allow issuers to retire higher yielding debt. As rates have increased, refinancing activity has subsided significantly. -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.49% 4.11% 5.09% $16,422 -------------------------------------------------------------------------------- Class A Shares* -3.45% 2.85% 4.31% $15,256 -------------------------------------------------------------------------------- Class B Shares** -4.20% 2.74% 4.03% $14,841 -------------------------------------------------------------------------------- Class C Shares** 0.56% 3.09% 4.04% $14,863 -------------------------------------------------------------------------------- Advisor Shares*** -2.23% 2.95% 4.24% $15,145 -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index 1 2.55% 4.99% 5.82% $17,607 -------------------------------------------------------------------------------- Lipper General Municipal Debt Funds Average 1 2.23% 4.22% 4.94% $16,216 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT TAX--FREE INCOME FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MARCH 20, 1995. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FOR THE FIFTH THIRD MUNICIPAL BOND FUND CLASS A Shares REFLECTS THE PERFORMANCE OF THE KENT TAX-FREE INCOME FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MARCH 31, 1995, AND IS ADJUSTED TO REFLECT APPLICABLE SALES CHARGE. CLASS B AND CLASS C SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR CLASS B AND CLASS C SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B AND CLASS C SHARES. ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001. THE PERFORMANCE FIGURES FOR ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES FOR ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- BOND QUALITY RATINGS AS OF JULY 31, 2006 AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] AAA 69.47% AA 16.55% A 6.03% BBB 7.18% Net Cash and Equivalents 0.77% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 52 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MUNICIPAL BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Fifth Third Municipal Lipper General Bond Fund Lehman Brothers Municipal Debt (Institutional Shares) Municipal Bond Index Funds Average --------------------- -------------------- -------------- 7/31/96 10000 10000 10000 10104 10137 10142 12/96 10378 10396 10387 10312 10371 10339 10668 10728 10700 10977 11052 11031 12/97 11270 11351 11345 11354 11482 11455 11496 11657 11606 11888 12015 11941 12/98 11914 12087 11949 11968 12194 12006 11699 11979 11735 11645 11931 11565 12/99 11525 11838 11377 11893 12184 11698 12054 12369 11824 12336 12668 12099 12/00 12954 13222 12617 13194 13515 12860 13245 13603 12919 13593 13985 13249 12/01 13480 13899 13099 13606 14030 13201 14117 14544 13638 14810 15234 14225 12/02 14781 15234 14171 14936 15417 14256 15320 15815 14647 15302 15828 14643 12/03 15474 16044 14870 15687 16321 15093 15283 15935 14743 15825 16556 15277 12/04 15949 16762 15474 15882 16757 15464 16277 17247 15891 16213 17226 15873 12/05 16264 17352 15979 16275 17394 16037 16247 17400 16033 7/31/06 16422 17607 16216 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Municipal Bond Index and the Lipper General Municipal Debt Funds Average. The Lehman Brothers Municipal Bond Index is generally representative of the municipal bond market. The Lipper General Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Municipal Bond Index is unmanaged and does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper General Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-year period ended July 31, 2006. 53 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Intermediate Municipal Bond Fund (Institutional Shares) returned 1.43% on a net of fee basis, underperforming its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which advanced 2.04%. Taking cues from the U.S. Treasury market, where short-term yields rose faster than long-term rates, the municipal bond yield curve flattened out during the period. For example, the average yield on a 3-year municipal bond increased 70 basis points (0.70%), while the average yield on a 5-year municipal bond increased 53 basis points (0.53%). By comparison, the Federal Reserve raised its overnight rate from 3.25% to 5.25% during the period--a far more dramatic move than among Treasury debentures dated 2 years and up, where increases were restrained by concerns over an economic slowdown. For much of the period, the Fund's duration was short of the benchmark--a position designed to mitigate the impact of rising short-term interest rates. By the end of June, however, the position was adjusted to a slightly longer duration than the benchmark. Although this helped in July as fixed income markets rallied on the belief that the Fed had completed its rate-hike campaign, an underweight stake at the longest end of the yield curve affected returns. + The Fund's stake in Puerto Rico issues enhanced gains. Purchased when the country's credit quality ratings were under pressure, the Fund enjoyed a rebound as the market grew more comfortable with the country's fiscal policy. Elsewhere, better yielding opportunities arose among A-rated issues, especially within the healthcare sector. + From a supply standpoint, 2006 has been tighter than 2005, with issuance down about 15% through the first six months. Much of the decrease may be attributed to the 52% drop in pre-refunded bonds, or new issues featuring better terms which allow issuers to retire higher yielding debt. As rates have increased, refinancing activity has subsided significantly. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.43% 3.22% 4.35% $15,307 -------------------------------------------------------------------------------- Class A Shares* -2.23% 2.25% 3.73% $14,421 -------------------------------------------------------------------------------- Class B Shares** -3.56% 2.25% 3.49% $14,097 -------------------------------------------------------------------------------- Class C Shares** 0.41% 2.20% 3.30% $13,834 -------------------------------------------------------------------------------- Advisor Shares*** -0.92% 2.32% 3.63% $14,291 -------------------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index 1 2.04% 4.10% 5.04% $16,479 -------------------------------------------------------------------------------- Lipper Intermediate Municipal Debt Funds Average 1 1.72% 3.68% 4.62% $15,721 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 3.50%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 2.00%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE TAX-FREE FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF DECEMBER 16, 1992. PRIOR TO OCTOBER 29, 2001, THE PERFORMANCE FIGURES FOR THE FIFTH THIRD INTERMEDIATE BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT INTERMEDIATE TAX-FREE FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF DECEMBER 18, 1992, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B, CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR THE KENT INTERMEDIATE TAX-FREE FUND INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- BOND QUALITY RATINGS AS OF JULY 31, 2006 AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] AAA 60.92% AA 20.06% A 7.68% BBB 8.07% Net Cash and Equivalents 2.34% Not Rated 0.93% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 54 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Lipper Fifth Third Intermediate Lehman Brothers Intermediate Municipal Bond Fund Quality Intermediate Municipal Debt (Institutional Shares) Municipal Bond Index Funds Average ------------------------ -------------------- -------------- 7/31/96 10000 10000 10000 10084 10170 10098 12/96 10314 10406 10312 10288 10407 10308 10563 10683 10579 10819 10946 10832 12/97 11042 11167 11070 11139 11285 11177 11246 11425 11316 11570 11746 11629 12/98 11635 11837 11691 11693 11940 11754 11503 11770 11555 11535 11869 11546 12/99 11517 11871 11505 11749 12060 11711 11905 12245 11856 12133 12503 12104 12/00 12553 12896 12518 12830 13225 12791 12924 13328 12870 13255 13694 13203 12/01 13146 13606 13094 13237 13725 13198 13707 14255 13671 14195 14825 14241 12/02 14229 14862 14244 14364 15027 14376 14615 15369 14699 14645 15446 14718 12/03 14694 15552 14859 14840 15753 15026 14539 15422 14722 14935 15916 15159 12/04 14997 16022 15270 14867 15879 15149 15181 16253 15505 15120 16210 15468 12/05 15178 16289 15548 15156 16282 15562 15170 16308 15564 7/31/06 15307 16479 15721 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmarks, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index and the Lipper Intermediate Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years. The Lipper Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 55 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Ohio Municipal Bond Fund (Institutional Shares) returned 1.46% on a net of fee basis, underperforming its benchmark, the Lehman Brothers Quality Intermediate Municipal Bond Index, which gained 2.04%. Taking cues from the U.S. Treasury market, where short-term yields rose faster than long-term rates, the municipal bond yield curve flattened out during the period. For example, the average yield on a 3-year municipal bond increased 70 basis points (0.70%), while the average yield on a 30-year municipal bond increased 12 basis points (0.12%). By comparison, the Federal Reserve raised its overnight rate from 3.25% to 5.25% during the period--a far more dramatic move than among Treasury debentures dated 2 years and up, where increases were restrained by concerns over an economic slowdown. For much of the period, the Fund's duration was short of the benchmark--a position designed to mitigate the impact of rising short-term interest rates. By the end of June, however, the position was adjusted to a slightly longer duration than the benchmark. Although this helped in July as fixed income markets rallied on the belief that the Fed had completed its rate-hike campaign, an underweight stake at the longest end of the yield curve affected returns. + The Fund's high quality orientation provided stable, consistent returns. Although the manufacturing industry's struggles and the overall slowing of the U.S. economy weighed more heavily on select Ohio communities, the state's overall credit profile remained steady. Efforts to benefit from modestly better yields led to opportunities among A-rated issues, especially within the healthcare sector. + From a supply standpoint, 2006 has been tighter than 2005, with issuance in Ohio down about 24% through the first seven months. Much of the decrease may be attributed to a large drop in pre-refunded bonds--new issues featuring better terms which allow issuers to retire higher yielding debt. As rates have increased, refinancing activity has subsided significantly. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX. SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.46% 3.23% 4.10% $14,949 -------------------------------------------------------------------------------- Class A Shares* -3.61% 1.98% 3.40% $13,975 -------------------------------------------------------------------------------- Class B Shares** -4.51% 1.83% 2.98% $13,418 -------------------------------------------------------------------------------- Class C Shares** 0.44% 2.20% 3.19% $13,686 -------------------------------------------------------------------------------- Advisor Shares*** -2.41% 2.03% 3.30% $13,840 -------------------------------------------------------------------------------- Lehman Brothers Quality Intermediate Municipal Bond Index 1 2.04% 4.10% 5.04% $16,479 -------------------------------------------------------------------------------- Lipper Ohio Intermediate Municipal Debt Funds Average 1 1.16% 2.98% 3.93% $14,720 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. INSTITUTIONAL SHARES WERE INITIALLY OFFERED ON AUGUST 11, 1998. THE PERFORMANCE FIGURES FOR INSTITUTIONAL SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES. CLASS B, CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 11, 2000, APRIL 24, 1996 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR CLASS A SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B , CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE WAIVERS AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- BOND QUALITY RATINGS AS OF JULY 31, 2006 AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] AAA 41.89% AA 33.25% A 14.82% BBB 9.98% Net Cash and Equivalents 0.06% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 56 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Lipper Ohio Fifth Third Ohio Lehman Brothers Intermediate Municipal Bond Fund Quality Intermediate Municipal Debt (Institutional Shares) Municipal Bond Index Funds Average ---------------------- -------------------- -------------- 7/31/96 10000 10000 10000 10048 10170 10082 12/96 10284 10406 10298 10238 10407 10275 10523 10683 10534 10765 10946 10769 12/97 10995 11167 10987 11065 11285 11072 11195 11425 11202 11558 11746 11507 12/98 11613 11837 11549 11637 11940 11597 11372 11770 11366 11344 11869 11347 12/99 11271 11871 11295 11511 12060 11486 11638 12245 11613 11868 12503 11841 12/00 12271 12896 12224 12532 13225 12462 12609 13328 12518 12920 13694 12819 12/01 12832 13606 12700 12896 13725 12792 13343 14255 13232 13821 14825 13732 12/02 13839 14862 13729 13962 15027 13850 14226 15369 14107 14267 15446 14112 12/03 14369 15552 14204 14513 15753 14337 14197 15422 14040 14591 15916 14419 12/04 14654 16022 14470 14529 15879 14352 14837 16253 14618 14758 16210 14567 12/05 14813 16289 14615 14816 16282 14597 14799 16308 14580 7/31/06 14949 16479 14720 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers Quality Intermediate Municipal Bond Index and the Lipper Ohio Intermediate Municipal Debt Funds Average. The Lehman Brothers Quality Intermediate Municipal Bond Index is generally representative of intermediate term municipal bonds with a maturity between two and twelve years.The Lipper Ohio Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers Quality Intermediate Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Ohio Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 57 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND -------------------------------------------------------------------------------- For the 12-month period ended July 31, 2006, the Fifth Third Michigan Municipal Bond Fund (Institutional Shares) gained 1.35% on a net of fee basis, underperforming its benchmark, the Lehman Brothers 1-5 year Municipal Bond Index, which returned 1.88%. Taking cues from the U.S. Treasury market, where short-term yields rose faster than long-term rates, the municipal bond yield curve flattened out during the period. For example, the average yield on a 3-year municipal bond increased 70 basis points (0.70%), while the average yield on a 30-year municipal bond increased 12 basis points (0.12%). By comparison, the Federal Reserve raised its overnight rate from 3.25% to 5.25% during the period--a far more dramatic move than among Treasury debentures dated 2 years and up, where increases were restrained by concerns over an economic slowdown. In Michigan, the economy remained in somewhat of a holding pattern as it waited for the fallout from the struggles of large automakers General Motors and Ford. While it appeared both companies would need to make changes which could be detrimental to the fiscal health of the eastern half of the state, it was too early to determine how any moves would play out. Meanwhile, in the western half of the state, which is less dependent on the auto industry, the economy performed better. + Within the Fund, pre-refunded issues, which carry triple-A ratings, weighed on returns as the best performing group, from a rating perspective, held single-A ratings. In addition, longer-term bonds purchased with original issue discounts sagged more than premium debentures as rates rose. + Providing gains were an assortment of groups including state-issued housing and student loan bonds, hospital bonds primarily from the western side of the state and water and sewer revenue bonds from a number of municipalities. During the period, the Fund's short duration, relative to the benchmark, also enhanced returns as it mitigated the impact of the rising short-term interest rates. + -------------------------------------------------------------------------------- INVESTMENT RISK CONSIDERATIONS -------------------------------------------------------------------------------- THE FUND'S INCOME MAY BE SUBJECT TO CERTAIN STATE AND LOCAL TAXES AND, DEPENDING ON YOUR TAX STATUS, THE FEDERAL ALTERNATIVE MINIMUM TAX. SINGLE STATE FUNDS MAY BE SUBJECT TO ADDITIONAL RISK, SINCE ISSUERS THEY INVEST IN ARE MORE LIKELY TO BE SUBJECT TO THE SAME POLITICAL AND/OR ECONOMIC RISKS. BONDS OFFER A RELATIVELY STABLE LEVEL OF INCOME, ALTHOUGH BOND PRICES WILL FLUCTUATE PROVIDING THE POTENTIAL FOR PRINCIPAL GAIN OR LOSS. INTERMEDIATE-TERM, HIGHER-QUALITY BONDS GENERALLY OFFER LESS RISK THAN LONGER-TERM BONDS AND A LOWER RATE OF RETURN. -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS AS OF JULY 31, 2006 -------------------------------------------------------------------------------- ENDING 1 YEAR 5 YEAR 10 YEAR VALUE 2 -------- -------- -------- --------- Institutional Shares 1.35% 2.51% 3.59% $14,234 -------------------------------------------------------------------------------- Class A Shares* -3.61% 1.37% 2.94% $13,361 -------------------------------------------------------------------------------- Class B Shares** -4.51% 1.13% 2.57% $12,883 -------------------------------------------------------------------------------- Class C Shares** 0.43% 1.50% 2.57% $12,883 -------------------------------------------------------------------------------- Advisor Shares*** -2.40% 1.36% 2.75% $13,119 -------------------------------------------------------------------------------- Lehman Brothers 1-5 Year Municipal Bond Index 1 1.88% 3.16% 4.24% $15,249 -------------------------------------------------------------------------------- Lipper Other States Short-Intermediate Municipal Debt Funds Average 1 1.55% 3.09% 3.68% $14,373 -------------------------------------------------------------------------------- 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, PLEASE VISIT WWW.53.COM. * REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. ** REFLECTS THE MAXIMUM APPLICABLE CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES. *** REFLECTS THE MAXIMUM SALES CHARGE OF 3.25%. THE FUND'S PERFORMANCE IN THE ABOVE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES ON FUND DISTRIBUTIONS, OR REDEMPTION OF SHARES. FOR THE PERIOD PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES REFLECTS THE PERFORMANCE OF THE KENT MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES WITH AN INCEPTION DATE OF MAY 3, 1993. PRIOR TO OCTOBER 29, 2001, THE QUOTED PERFORMANCE FOR THE FIFTH THIRD MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES REFLECTS THE PERFORMANCE OF THE KENT MICHIGAN MUNICIPAL BOND FUND INVESTMENT SHARES WITH AN INCEPTION DATE OF MAY 11, 1993, ADJUSTED FOR THE MAXIMUM SALES CHARGE. CLASS B, CLASS C AND ADVISOR SHARES WERE INITIALLY OFFERED ON OCTOBER 29, 2001, OCTOBER 29, 2001 AND AUGUST 1, 2005, RESPECTIVELY. THE PERFORMANCE FIGURES FOR CLASS B, CLASS C AND ADVISOR SHARES FOR PERIODS PRIOR TO SUCH DATE REPRESENT THE PERFORMANCE FOR INSTITUTIONAL SHARES AND IS ADJUSTED TO REFLECT EXPENSES AND APPLICABLE SALES CHARGES FOR CLASS B, CLASS C AND ADVISOR SHARES. DURING THE PERIOD SHOWN, THE ADVISOR AND/OR AFFILIATES WAIVED AND/OR REIMBURSED FEES FOR VARIOUS EXPENSES. HAD THESE waivers AND/OR REIMBURSEMENTS NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. -------------------------------------------------------------------------------- BOND QUALITY RATINGS AS OF JULY 31, 2006 AS REPRESENTED BY STANDARD AND POOR'S RATING AGENCY -------------------------------------------------------------------------------- AS A PERCENTAGE OF VALUE OF INVESTMENTS + -------------------------------------------------------------------------------- [BAR CHART] AAA 61.72% AA 20.51% A 10.45% BBB 4.99% Net Cash and Equivalents 0.24% Not Rated 2.09% + PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE. 58 MANAGEMENT DISCUSSION OF FUND PERFORMANCE -------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND -------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT -------------------------------------------------------------------------------- [LINE CHART] Lipper Other States Short- Fifth Third Michigan Lehman Brothers Intermediate Municipal Bond Fund 1-5 Year Municipal Municipal Debt (Institutional Shares) Bond Index Funds Average ---------------------- ------------------ -------------- 7/31/96 10000 10000 10000 10066 10146 10075 12/96 10222 10329 10226 10222 10353 10255 10431 10568 10436 10622 10765 10615 12/97 10786 10927 10770 10883 11047 10867 10982 11169 10973 11212 11411 11184 12/98 11298 11516 11273 11389 11640 11343 11290 11570 11260 11358 11681 11300 12/99 11373 11712 11331 11493 11841 11461 11627 12009 11553 11821 12209 11747 12/00 12091 12477 12016 12374 12796 12262 12485 12943 12353 12754 13243 12578 12/01 12753 13254 12595 12817 13325 12682 13185 13743 12990 13459 14076 13339 12/02 13545 14192 13389 13662 14316 13502 13799 14481 13676 13893 14619 13760 12/03 13865 14621 13813 13946 14766 13931 13753 14558 13713 13983 14858 13997 12/04 14014 14919 14056 13915 14804 13980 14082 15013 14181 14080 15026 14184 12/05 14126 15072 14230 14123 15093 14245 14156 15138 14277 7/31/06 14234 15249 14373 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.53.COM. -------------------------------------------------------------------------------- The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of dividends and capital gains in the Fund. However, the performance does not reflect the deduction of taxes on Fund distributions, or redemption of shares. 1 The Fund's performance is measured against the Lehman Brothers 1-5 Year Municipal Bond Index and the Lipper Other States Short-Intermediate Municipal Debt Funds Average. The Lehman Brothers 1-5 Year Municipal Bond Index is representative of short term municipal bonds with a maturity between one and six years. The Lipper Other States Short-Intermediate Municipal Debt Funds Average is representative of the average of the total returns reported by all of the mutual funds designated by Lipper, Inc., which fell into this category. The Lehman Brothers 1-5 Year Municipal Bond Index does not reflect the deduction of fees associated with a mutual fund such as investment management and fund accounting fees. However, the Lipper Other States Short-Intermediate Municipal Debt Funds Average and the Fund's performance reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying mutual funds or securities. 2 The ending value represents the value of a $10,000 investment in the indicated share class for the 10-Year period ended July 31, 2006. 59 This page intentionally left blank. 60 SMALL CAP GROWTH FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (91.0%) A.S.V., Inc. * (g) 102,364 $ 1,562 Aaron Rents, Inc. (g) 65,273 1,576 Advanced Analogic Technologies, Inc. * (g) 156,400 1,472 Aeropostale, Inc. * (g) 70,000 1,940 American Medical Systems Holdings, Inc. * (g) 133,800 2,442 ArthroCare Corp. * (g) 34,300 1,511 Basic Energy Services, Inc. * 74,009 1,998 Beacon Roofing Supply, Inc. * (g) 91,150 1,667 Benchmark Electronics, Inc. * 48,150 1,171 Bucyrus International, Inc., Class A (g) 68,250 3,324 CARBO Ceramics, Inc. (g) 15,100 587 Carpenter Technology Corp. 24,600 2,421 Children's Place Retail Stores, Inc. * (g) 43,400 2,423 Core Laboratories N.V. * 49,300 3,599 Crocs, Inc. * (g) 63,400 1,754 Delek US Holdings, Inc. * (g) 127,586 2,080 Denbury Resources, Inc. * 28,900 1,002 Digene Corp. * 42,900 1,811 East-West Bancorp., Inc. 59,200 2,389 Energy Conversion Devices, Inc. * (g) 65,030 2,188 Epicor Software Corp. * (g) 168,500 1,975 First Cash Financial Services, Inc. * (g) 154,700 2,945 FormFactor, Inc. * (g) 66,000 2,829 Gardner Denver, Inc. * 61,600 2,134 General Cable Corp. * 95,700 3,417 Grey Wolf, Inc. * (g) 202,800 1,553 HealthExtras, Inc. * (g) 90,500 2,349 Hibbet Sporting Goods, Inc. * (g) 69,350 1,370 Hologic, Inc. * (g) 31,800 1,428 Houston Wire and Cable Co. * 130,496 2,456 Hub Group, Inc., Class A * (g) 105,000 2,371 Hub International Ltd. 73,100 1,909 Huron Consulting Group, Inc. * 82,745 2,870 Inventiv Health, Inc. * (g) 51,800 1,445 Jarden Corp. * (g) 68,200 1,977 Labor Ready, Inc. * 70,100 1,143 LKQ Corp. * (g) 105,868 2,371 Morton's Restaurant Group, Inc. * 139,033 2,085 MWI Veterinary Supply, Inc. * 70,100 2,627 NCI, Inc. * 123,738 1,678 NICE Systems, Ltd., ADR * 105,172 2,757 NuVasive, Inc. * (g) 122,458 2,142 OpenTV Corp., Class A * 650,000 2,054 OraSure Technologies, Inc. * 164,100 1,533 Parametric Technology Corp. * 155,320 2,401 PGT, Inc. * 95,700 1,507 Pinnacle Entertainment, Inc. * 57,400 1,574 Providence Service Corp. * (g) 76,404 1,877 Psychiatric Solutions, Inc. * (g) 106,900 3,366 Respironics, Inc. * 66,700 2,373 Sciele Pharma, Inc. * (g) 113,246 2,315 SI International, Inc. * (g) 70,500 1,923 Stage Stores, Inc. 79,000 2,343 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Superior Energy Services, Inc. * 49,900 $ 1,709 Symmetricom, Inc. * (g) 281,400 1,992 Texas Industries, Inc. 47,000 2,321 Thomas Weisel Partners Group, Inc. * (g) 96,172 1,446 Trammell Crow Co. * 43,000 1,482 Trident Microsystems, Inc. * 71,300 1,228 United Natural Foods, Inc. * (g) 75,100 2,264 Vasco Data Security International, Inc. * (g) 242,300 2,096 VCA Antech, Inc. * (g) 77,200 2,700 Volterra Semiconductor Corp. * 105,000 1,531 Witness Systems, Inc. * 55,200 879 Xyratex, Ltd. * 108,000 2,510 Zenith National Insurance Corp. 42,500 1,699 ----------- TOTAL COMMON STOCKS 133,871 ----------- INVESTMENTS IN AFFILIATES (h) (9.1%) Fifth Third Institutional Money Market Fund 13,324,078 13,324 ----------- TOTAL INVESTMENTS IN AFFILIATES 13,324 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (36.5%) Pool of various securities for Fifth Third Funds $ 53,720 53,720 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 53,720 ----------- TOTAL INVESTMENTS (COST $173,171)+ - 136.6% 200,915 LIABILITIES IN EXCESS OF OTHER ASSETS - (36.6)% (53,854) ----------- NET ASSETS - 100.0% $ 147,061 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 61 MID CAP GROWTH FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (94.7%) Advance Auto Parts, Inc. 123,050 $ 3,725 Affiliated Managers Group, Inc. * (g) 45,000 4,120 Allegheny Technologies, Inc. 109,100 6,970 Alliance Data Systems Corp. * (g) 161,100 8,269 Amdocs Ltd. * 167,100 6,062 American Medical Systems Holdings, 358,200 6,537 Inc. * (g) Autodesk, Inc. * 134,100 4,574 C.H. Robinson Worldwide, Inc. (g) 112,100 5,132 CACI International, Inc., Class A * 77,000 4,339 CapitalSource, Inc. (g) 255,000 6,015 Caremark Rx, Inc. 102,400 5,407 Carters, Inc. * (g) 233,000 5,082 Coach, Inc. * 187,000 5,369 Cognizant Technology Solutions Corp. * 112,100 7,341 Community Health Systems, Inc. * 111,600 4,047 Complete Production Services, Inc. * (g) 126,704 2,610 Comverse Technology, Inc. * 160,292 3,106 Corporate Executive Board Co. 82,000 7,708 Covance, Inc. * (g) 95,200 6,070 Coventry Health Care, Inc. * 88,500 4,664 Cytyc Corp. * 296,900 7,305 D. R. Horton, Inc. (g) 112,100 2,402 DaVita, Inc. * (g) 109,000 5,452 E*TRADE Financial Corp. * 237,800 5,543 Express Scripts, Inc. * 47,300 3,644 Fisher Scientific International, Inc. * (g) 51,800 3,839 FormFactor, Inc. * (g) 102,300 4,386 Gardner Denver, Inc. * 145,000 5,024 GEN-Probe, Inc. * (g) 86,000 4,468 GlobalSantaFe Corp. (g) 142,100 7,807 Herbalife Ltd. * 210,600 7,522 IDEX Corp. 115,100 5,001 Intersil Corp., Class A 206,000 4,843 ITT Industries, Inc. (g) 72,000 3,640 Joy Global, Inc. 144,350 5,416 Laureate Education, Inc. * (g) 128,018 5,844 Manpower, Inc. 98,100 5,835 Marriott International, Inc., Class A (g) 186,300 6,554 Martin Marietta Materials, Inc. (g) 57,000 4,589 Microchip Technology, Inc. 195,737 6,314 MICROS Systems, Inc. * (g) 148,600 5,944 Nabors Industries Ltd. * (g) 188,200 6,647 National-Oilwell Varco, Inc. * 119,100 7,984 NII Holdings, Inc. * (g) 158,000 8,340 Polo Ralph Lauren Corp. 101,100 5,766 Precision Castparts Corp. 114,100 6,806 ProAssurance Corp. * 100,700 5,006 Respironics, Inc. * 163,100 5,803 Scientific Games Corp., Class A * (g) 177,100 6,016 Seagate Technology (g) 163,000 3,782 Starwood Hotels & Resorts Worldwide, Inc. 129,300 6,798 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Station Casinos, Inc. (g) 81,000 $ 4,444 Stericycle, Inc. * (g) 64,000 4,300 T. Rowe Price Group, Inc. (g) 204,200 8,435 Thermo Electron Corp. * (g) 156,100 5,777 Time Warner Telecom, Inc., Class A * (g) 335,000 5,611 Tractor Supply Co. * (g) 68,500 3,133 Ultra Petroleum Corp. * 74,100 4,339 Urban Outfitters, Inc. * 157,700 2,301 VCA Antech, Inc. * 125,200 4,378 WESCO International, Inc. * (g) 149,100 8,685 Williams-Sonoma, Inc. 109,100 3,469 XTO Energy, Inc. 115,100 5,409 ----------- TOTAL COMMON STOCKS 341,748 ----------- INVESTMENTS IN AFFILIATES (h) (8.4%) Fifth Third Institutional Money Market Fund 30,458,427 30,458 ----------- TOTAL INVESTMENTS IN AFFILIATES 30,458 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (29.1%) Pool of various securities for Fifth Third Funds $ 105,117 105,117 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 105,117 ----------- TOTAL INVESTMENTS (COST $414,812)+ - 132.2% 477,323 LIABILITIES IN EXCESS OF OTHER ASSETS - (32.2)% (116,311) ----------- NET ASSETS - 100.0% $ 361,012 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 62 QUALITY GROWTH FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (99.4%) Accenture Ltd., Class A (g) 420,000 $ 12,289 ACE Ltd. 299,000 15,407 Alberto-Culver Co. 158,000 7,701 Altera Corp. * (g) 384,000 6,647 AT&T, Inc. 250,000 7,498 Autodesk, Inc. * 287,000 9,790 Bank of America Corp. 435,000 22,416 Best Buy Co., Inc. (g) 521,000 23,622 BJ Services Co. (g) 493,000 17,881 Cadence Design Systems, Inc. * 429,000 6,946 Caremark Rx, Inc. 472,000 24,922 Cephalon, Inc. * 116,000 7,626 Cerner Corp. * (g) 187,000 7,570 Cintas Corp. 95,000 3,354 Cisco Systems, Inc. * 1,455,000 25,972 Coach, Inc. * 503,000 14,441 Corning, Inc. * 599,000 11,423 CVS Corp. 1,034,000 33,832 Dover Corp. 165,000 7,778 First Data Corp. 442,000 18,055 Foster Wheeler Ltd.. * (g) 288,000 10,984 Freescale Semiconductor, Inc., Class A * 447,000 12,798 General Electric Corp. 173,000 5,655 Genzyme Corp. * 284,000 19,392 Gilead Sciences, Inc. * (g) 526,000 32,338 Halliburton Co. (g) 328,000 10,942 Henry Schein, Inc. * (g) 339,000 16,072 Hewlett-Packard Co. 237,000 7,562 Illinois Tool Works, Inc. 252,000 11,525 J.P. Morgan Chase & Co. 337,000 15,373 Kellogg Co. 158,000 7,611 Laboratory Corp. of America Holdings * 118,000 7,601 Lowe's Cos., Inc. 265,000 7,513 Manpower, Inc. 93,000 5,532 Marriott International, Inc., Class A (g) 544,000 19,137 Microsoft Corp. 621,000 14,923 Morgan Stanley 151,000 10,042 MSC Industrial Direct Co., Inc., Class A (g) 175,000 7,215 News Corp. 378,000 7,605 Nordstrom, Inc. (g) 426,000 14,612 Northern Trust Corp. (g) 193,000 11,020 Peabody Energy Corp. 153,000 7,635 PepsiCo, Inc. 201,000 12,739 Pharmaceutical Product Development, Inc. 777,000 29,899 Praxair, Inc. 139,000 7,623 Procter & Gamble Co. 283,000 15,905 QUALCOMM, Inc. 459,000 16,184 Red Hat, Inc. * (g) 363,000 8,596 Republic Services, Inc. 189,000 7,590 Rockwell Automation, Inc. (g) 233,000 14,441 Station Casinos, Inc. (g) 139,000 7,626 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Texas Instruments, Inc. 596,000 $ 17,749 Textron, Inc. 87,000 7,822 The Walt Disney Co. 262,000 7,779 Union Pacific Corp. 130,000 11,050 Varian Medical Systems, Inc. * (g) 206,000 9,336 Vertex Pharmaceuticals, Inc. * (g) 108,000 3,620 Western Digital Corp. * 383,000 6,718 Wyeth 155,000 7,513 Yahoo, Inc. * (g) 200,000 5,428 ----------- TOTAL COMMON STOCKS 745,875 ----------- INVESTMENTS IN AFFILIATES (h) (3.4%) Fifth Third Institutional Money Market Fund 25,700,049 25,700 ----------- TOTAL INVESTMENTS IN AFFILIATES 25,700 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (20.4%) Pool of various securities for Fifth Third Funds $ 152,650 152,650 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 152,650 ----------- TOTAL INVESTMENTS (COST $872,678)+ - 123.2% 924,225 LIABILITIES IN EXCESS OF OTHER ASSETS - (23.2)% (174,325) ----------- NET ASSETS - 100.0% $ 749,900 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 63 LARGE CAP CORE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (97.4%) 3M Co. 12,775 $ 899 Advanced Micro Devices, Inc. * 633 12 AES Corp. * 85,464 1,697 Air Products and Chemicals, Inc. 24,897 1,592 Alcoa, Inc. 13,440 403 Altria Group, Inc. 15,092 1,207 AMBAC Financial Group, Inc. 7,775 646 American International Group, Inc. 35,151 2,132 AmeriCredit Corp. * (g) 24,009 590 Amgen, Inc. * 3,396 237 Aon Corp. 10,766 369 Applied Biosystems Group 44,630 1,435 Aramark Corp., Class B 14,727 473 Assurant, Inc. 1,537 74 AT&T, Inc. 21,344 640 Autoliv, Inc. 18,368 1,032 Bank of America Corp. 50,089 2,581 Bank of New York Co., Inc. 44,683 1,502 Bear Stearns Cos., Inc. 6,111 867 Biogen Idec, Inc. * 26,584 1,120 Biovail Corp. International 30,221 671 BMC Software, Inc. * (g) 41,240 966 Campbell Soup Co. (g) 2,813 103 Cardinal Health, Inc. 14,285 957 Carolina Group 11,817 678 CBS Corp., Class B 65,081 1,785 CenturyTel, Inc. 2,669 103 Chevron Corp. 62,514 4,112 Circuit City Stores, Inc. 27,627 677 Cisco Systems, Inc. * 195,466 3,489 CIT Group, Inc. 23,936 1,099 Citigroup, Inc. 101,033 4,881 Coca-Cola Enterprises, Inc. 74,631 1,601 Colgate-Palmolive Co. 9,543 566 ConocoPhillips 11,045 758 Coventry Health Care, Inc. * 1,749 92 Danaher Corp. 13,047 851 Darden Restaurants, Inc. 21,372 722 Deere & Co. 3,798 276 DENTSPLY International, Inc. 43,138 1,350 Deutsche Bank AG 9,381 1,084 Dollar Tree Stores, Inc. * 55,638 1,480 E. I. du Pont de Nemours & Co. 48,409 1,920 Eastman Kodak Co. (g) 10,935 243 Emerson Electric Corp. 22,019 1,738 Encana Corp. 4,498 243 Exxon Mobil Corp. 123,593 8,373 Family Dollar Stores, Inc. (g) 53,487 1,215 FedEx Corp. 13,472 1,411 First American Financial Corp. 8,498 315 First Data Corp. 29,041 1,186 FirstEnergy Corp. 23,579 1,320 Freescale Semiconductor, Inc. * 28,892 824 Gap, Inc. 8,313 144 CONTINUED SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED General Dynamics Corp. 32,360 $ 2,169 General Electric Corp. (a) 194,492 6,359 General Mills, Inc. 32,906 1,707 Goldman Sachs Group, Inc. 14,335 2,190 Halliburton Co. 12,136 405 Hewlett-Packard Co. 101,199 3,229 Home Depot, Inc. 42,880 1,488 IAC/InterActiveCorp. * (g) 56,130 1,331 IBM Corp. 47,083 3,645 Illinois Tool Works, Inc. 33,213 1,519 International Paper Co. 17,127 588 Intuit, Inc. * (g) 67,558 2,086 J.C. Penney Co., Inc. (g) 25,707 1,619 J.P. Morgan Chase & Co. 80,828 3,687 Johnson & Johnson 23,252 1,455 Jones Apparel Group, Inc. 39,292 1,163 King Pharmaceuticals, Inc. * (g) 87,920 1,496 Kohl's Corp. * 9,142 518 Kraft Foods, Inc., Class A (g) 46,993 1,523 Kroger Co. (g) 54,378 1,247 Laboratory Corp. of America 24,900 1,605 Holdings * (g) Lehman Brothers Holdings, Inc. 24,652 1,601 Lexmark International, Inc. * (g) 33,898 1,832 Limited Brands, Inc. (g) 37,321 939 Loews Corp. 36,600 1,356 Manulife Financial Corp. 32,744 1,037 Marathon Oil Corp. 26,228 2,377 Masco Corp. (g) 52,846 1,413 McDonald's Corp. 39,863 1,411 McGraw-Hill Cos., Inc. (g) 26,367 1,484 McKesson, Inc. 4,980 251 MeadWestvaco Corp. 37,111 969 Merck & Co., Inc. 73,118 2,945 Merrill Lynch & Co., Inc. 1,363 99 Micron Technology, Inc. * (g) 118,600 1,849 Microsoft Corp. (a) 215,845 5,186 Morgan Stanley 34,338 2,283 Motorola, Inc. 121,542 2,766 News Corp., Class A 111,760 2,150 Norfolk Southern Corp. 12,099 525 Northrop Grumman Corp. 33,164 2,195 Nucor Corp. 14,048 747 Office Depot, Inc. * 44,477 1,603 Old Republic International Corp. 50,533 1,075 Pepco Holdings, Inc. 52,177 1,278 Pepsi Bottling Group, Inc. 44,178 1,469 PepsiCo, Inc. 3,218 204 Pfizer, Inc. 61,735 1,604 PG&E Corp. 50,100 2,089 PPG Industries, Inc. 14,145 870 Procter & Gamble Co. 26,767 1,504 Quest Diagnostics, Inc. 5,228 314 Raytheon Co. 47,474 2,140 CONTINUED 64 LARGE CAP CORE FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Reynolds American, Inc. (g) 5,164 $ 655 Schlumberger, Ltd. 23,457 1,568 Seagate Technology 22,074 512 Sears Holdings Corp. * 10,699 1,468 Southwest Airlines Co. 2,139 38 Sunoco, Inc. 2,120 147 Tesoro Corp. 11,224 840 Texas Instruments, Inc. 82,107 2,445 The PMI Group, Inc. 19,589 832 The Walt Disney Co. 84,383 2,506 Tyco International Ltd. 47,889 1,249 U.S. Bancorp. 51,805 1,658 UBS AG 19,030 1,035 United Parcel Service, Inc. 11,390 785 United Technologies Corp. 983 61 Valero Energy 9,078 612 Verizon Communications, Inc. 79,852 2,701 Wachovia Corp. (g) 37,156 1,993 Wal-Mart Stores, Inc. 7,338 327 Waste Management, Inc. 22,859 786 Wells Fargo & Co. 42,313 3,061 Wyeth 9,470 459 Xerox Corp. * 32,071 452 ----------- TOTAL COMMON STOCKS 183,525 ----------- INVESTMENTS IN AFFILIATES (h) (2.6%) Fifth Third Institutional Money Market Fund 4,973,611 4,974 ----------- TOTAL INVESTMENTS IN AFFILIATES 4,974 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (10.1%) Pool of various securities for Fifth Third Funds $ 19,054 19,054 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 19,054 ----------- TOTAL INVESTMENTS (COST $190,665)+ - 110.1% 207,553 LIABILITIES IN EXCESS OF OTHER ASSETS - (10.1)% (19,052) ----------- NET ASSETS - 100.0% $ 188,501 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. EQUITY INDEX FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (96.3%) 3M Co. 25,785 $ 1,815 Abbott Laboratories 52,198 2,493 ACE Ltd. 11,122 573 ADC Telecommunications, Inc. * 4,010 49 Adobe Systems, Inc. * 20,477 584 Advanced Micro Devices, Inc. * (g) 16,557 321 AES Corp. * 22,515 447 Aetna, Inc. 19,392 611 Affiliated Computer Services Inc., Class A * 4,055 207 AFLAC, Inc. 17,053 753 Agilent Technologies, Inc. * 14,563 415 Air Products and Chemicals, Inc. 7,667 490 Alberto-Culver Co. 2,601 127 Alcoa, Inc. 29,758 890 Allegheny Energy, Inc. * (g) 5,586 229 Allegheny Technologies, Inc. 2,985 191 Allergan, Inc. 5,221 563 Allied Waste Industries, Inc. * 8,272 84 Allstate Corp. 21,730 1,235 Alltel Corp. 13,308 734 Altera Corp. * 12,288 213 Altria Group, Inc. 71,416 5,710 Amazon.com, Inc. * (g) 10,576 284 AMBAC Financial Group, Inc. 3,616 301 Ameren Corp. (g) 7,023 362 American Electric Power Co. 13,472 487 American Express Co. 42,198 2,197 American International Group, Inc. 88,836 5,389 American Power Conversion Corp. (g) 5,802 98 American Standard Companies, Inc. 6,051 234 Ameriprise Financial, Inc. 8,358 373 AmerisourceBergen Corp. 7,179 309 Amgen, Inc. * 40,330 2,813 AmSouth Bancorp. 11,836 339 Anadarko Petroleum Corp. 15,682 717 Analog Devices, Inc. 12,352 399 Andrew Corp. * 5,459 46 Anheuser-Busch Co., Inc. 26,430 1,273 Aon Corp. 10,898 373 Apache Corp. 11,298 796 Apartment Investment & Management Co. 3,324 160 Apollo Group, Inc., Class A * 4,786 226 Apple Computer, Inc. * 29,088 1,977 Applied Biosystems Group 6,329 203 Applied Materials, Inc. (g) 53,483 842 Archer-Daniels-Midland Co. 22,382 984 Ashland, Inc. 2,430 162 AT&T, Inc. (g) 132,971 3,988 Autodesk, Inc. * 7,924 270 Automatic Data Processing, Inc. 19,712 863 AutoNation, Inc. * 5,072 100 AutoZone, Inc. * 1,829 161 Avaya, Inc. * (g) 14,057 130 Avery Dennison Corp. 3,754 220 65 EQUITY INDEX FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Avon Products, Inc. 15,400 $ 446 Baker Hughes, Inc. 11,654 932 Ball Corp. 3,581 137 Bank of America Corp. 156,075 8,042 Bank of New York Co., Inc. 26,395 887 Barr Pharmaceuticals, Inc. * 3,631 181 Bausch & Lomb, Inc. 1,839 87 Baxter International, Inc. 22,395 941 BB&T Corp. 18,811 790 Bear Stearns Cos., Inc. 4,125 585 Becton, Dickinson & Co. 8,458 558 Bed Bath & Beyond, Inc. * (g) 9,653 323 BellSouth Corp. 61,863 2,423 Bemis Co. 3,585 110 Best Buy Co., Inc. 13,769 624 Big Lots, Inc. * (g) 3,899 63 Biogen Idec, Inc. * 11,760 495 Biomet, Inc. 8,416 277 BJ Services Co. 10,996 399 BMC Software, Inc. * 7,279 170 Boeing Co. 27,346 2,117 Boston Properties, Inc. (g) 3,123 307 Boston Scientific Corp. * 41,555 707 Bristol-Myers Squibb Co. (g) 67,250 1,612 Broadcom Corp., Class A * 15,666 376 Brown-Forman Corp. 2,844 209 Brunswick Corp. (g) 3,235 96 Burlington Northern Santa Fe Corp. 12,472 859 C.R. Bard, Inc. 3,542 251 CA, Inc. 15,605 327 Campbell Soup Co. 6,338 232 Capital One Financial Corp. 10,364 802 Cardinal Health, Inc. 14,285 957 Caremark Rx, Inc. 15,131 799 Carnival Corp. 14,855 578 Caterpillar, Inc. 22,902 1,623 CBS Corp., Class B 26,420 725 Centerpoint Energy, Inc. (g) 10,649 146 Centex Corp. 4,151 196 CenturyTel, Inc. 3,973 153 Charles Schwab Corp. 35,288 560 Chesapeake Energy Corp. (g) 14,101 464 Chevron Corp. 75,807 4,987 Chubb Corp. 14,190 715 Ciena Corp. * (g) 20,099 73 CIGNA Corp. 4,096 374 Cincinnati Financial Corp. 5,926 279 Cintas Corp. 4,716 166 Circuit City Stores, Inc. 5,150 126 Cisco Systems, Inc. * 208,783 3,727 CIT Group, Inc. 6,818 313 Citigroup, Inc. 170,020 8,214 Citizens Communications Co. 11,114 143 Citrix Systems, Inc. * 6,230 198 CONTINUED SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Clear Channel Communications, Inc. 17,212 $ 498 Clorox Co. 5,160 309 CMS Energy Corp. * (g) 7,563 106 Coach, Inc. * 13,166 378 Coca-Cola Co. 70,095 3,119 Coca-Cola Enterprises, Inc. 10,380 223 Colgate-Palmolive Co. 17,602 1,044 Comcast Corp., Class A * (g) 72,261 2,485 Comerica, Inc. 5,555 325 Commerce Bancorp, Inc. (g) 6,299 214 Compass Bancshares, Inc. 4,416 260 Computer Sciences Corp. * 6,423 337 Compuware Corp. * 12,906 90 Comverse Technology, Inc. * 6,909 134 ConAgra, Inc. 17,763 382 ConocoPhillips 56,453 3,875 Consol Energy, Inc. 6,265 258 Consolidated Edison, Inc. (g) 8,406 394 Constellation Brands, Inc., Class A * (g) 6,802 166 Constellation Energy Group, Inc. 6,120 354 Convergys Corp. * 4,792 91 Cooper Industries Ltd., Class A (g) 3,160 272 Corning, Inc. * 53,270 1,016 Costco Wholesale Corp. 16,117 850 Countrywide Credit Industries, Inc. 20,781 745 Coventry Health Care, Inc. * 5,489 289 CSX Corp. 7,578 460 Cummins Engine, Inc. (g) 1,588 186 CVS Corp. 27,990 916 D. R. Horton, Inc. (g) 9,303 199 Danaher Corp. 8,069 526 Darden Restaurants, Inc. 4,410 149 Dean Foods Co. * 4,652 175 Deere & Co. 8,023 582 Dell, Inc. * 77,691 1,684 Devon Energy Corp. 15,048 973 Dillards Department Stores, Inc. 2,114 63 Dollar General Corp. (g) 10,662 143 Dominion Resources, Inc. 11,886 933 Dover Corp. 6,973 329 Dow Chemical Co. 32,891 1,137 Dow Jones & Co. 2,021 71 DTE Energy Co. (g) 6,080 257 Duke Energy Corp. 42,237 1,281 Dynegy, Inc. * 12,623 71 E*TRADE Financial Corp. * 14,584 340 E. I. du Pont de Nemours & Co. 31,508 1,250 Eastman Chemical Co. 2,796 139 Eastman Kodak Co. (g) 9,824 219 Eaton Corp. 5,137 329 eBay, Inc. * 39,546 952 Ecolab, Inc. 6,228 268 Edison International 11,143 461 El Paso Energy Corp. 23,794 381 CONTINUED 66 EQUITY INDEX FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Electronic Arts, Inc. * 10,471 $ 493 Electronic Data Systems Corp. 17,731 424 Eli Lilly & Co. 38,651 2,194 Embarq Corp. * (g) 5,098 231 EMC Corp. * 80,871 821 Emerson Electric Corp. 14,038 1,108 Entergy Corp. 7,112 548 EOG Resources, Inc. 8,296 615 Equifax, Inc. 4,397 142 Equity Office Properties Trust (g) 12,522 474 Estee Lauder Companies Inc., Class A 4,064 152 Exelon Corp. 22,863 1,324 Express Scripts, Inc. * 5,028 387 Exxon Mobil Corp. 206,926 14,017 Family Dollar Stores, Inc. 5,312 121 Fannie Mae 33,103 1,586 Federated Department Stores, Inc. 18,920 664 Federated Investors, Inc. 2,887 90 FedEx Corp. 10,435 1,093 Fifth Third Bancorp. (b) 19,033 726 First Data Corp. 26,183 1,070 First Horizon National Corp. (g) 4,215 177 FirstEnergy Corp. 11,281 632 Fiserv, Inc. * 6,009 262 Fisher Scientific International, Inc. * (g) 4,246 315 Fluor Corp. 2,994 263 Ford Motor Co. 64,159 428 Forest Laboratories, Inc. * 11,146 516 Fortune Brands, Inc. 5,015 364 FPL Group, Inc. 13,826 596 Franklin Resources, Inc. 5,246 480 Freddie Mac 23,633 1,367 Freeport-McMoRan Copper & Gold, 6,446 352 Inc., Class B Freescale Semiconductor, Inc. * 13,877 396 Gannett Co., Inc. 8,133 424 Gap, Inc. 18,811 326 General Dynamics Corp. (g) 13,806 925 General Electric Corp. (a) 355,633 11,626 General Mills, Inc. 12,173 632 General Motors Corp. (g) 19,343 624 Genuine Parts Co. 5,906 246 Genworth Financial, Inc., Class A 12,477 428 Genzyme Corp. * 8,904 608 Gilead Sciences, Inc. * 15,562 957 Golden West Financial Corp. 8,760 645 Goldman Sachs Group, Inc. 14,776 2,257 Goodrich Corp. 4,238 171 Goodyear Tire & Rubber Co. * (g) 6,061 67 Google, Inc., Class A * 7,049 2,725 H & R Block, Inc. 11,232 256 H.J. Heinz Co. 11,458 481 Halliburton Co. 35,308 1,178 Harley-Davidson, Inc. 9,188 524 CONTINUED SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Harman International Industries, Inc. 2,288 $ 183 Harrah's Entertainment, Inc. 6,319 380 Hartford Financial Services Group, Inc. 10,366 879 Hasbro, Inc. 5,888 110 HCA, Inc. 13,956 686 Health Management Associates, Inc., 8,234 168 Class A (g) Hercules, Inc. * (g) 3,886 54 Hess Corp. 8,247 436 Hewlett-Packard Co. 95,405 3,044 Hilton Hotels Corp. (g) 11,313 271 Home Depot, Inc. 70,692 2,455 Honeywell International, Inc. 28,316 1,096 Hospira, Inc. * 5,343 233 Humana, Inc. * 5,631 315 Huntington Bancshares 8,389 204 IBM Corp. 53,025 4,104 Illinois Tool Works, Inc. 14,164 648 IMS Health, Inc. 6,830 187 Ingersoll-Rand Co., Class A 11,253 403 Intel Corp. 198,946 3,581 International Flavors & Fragrances, Inc. 2,703 100 International Game Technology 11,597 448 International Paper Co. 16,859 578 Interpublic Group Cos., Inc. * (g) 14,920 122 Intuit, Inc. * (g) 11,686 361 ITT Industries, Inc. 6,326 320 J.C. Penney Co., Inc. (g) 8,032 506 J.P. Morgan Chase & Co. 118,833 5,421 Jabil Circuit, Inc. (g) 6,090 141 Janus Capital Group, Inc. (g) 7,238 117 JDS Uniphase Corp. * (g) 57,624 123 Johnson & Johnson 101,269 6,333 Johnson Controls, Inc. 6,668 512 Jones Apparel Group, Inc. 3,850 114 Juniper Networks, Inc. * (g) 19,349 260 KB Home (g) 2,578 110 Kellogg Co. 8,340 402 Kerr-McGee Corp. 7,764 545 KeyCorp 13,824 510 KeySpan Corp. 5,984 241 Kimberly-Clark Corp. 15,724 960 Kinder Morgan, Inc. 3,565 364 King Pharmaceuticals, Inc. * (g) 8,284 141 KLA-Tencor Corp. (g) 6,809 287 Kohls Corp. * (g) 11,643 659 Kroger Co. (g) 24,743 567 L-3 Communications Holdings, Inc. 4,171 307 Laboratory Corp. of America Holdings * (g) 4,265 275 Legg Mason, Inc. 4,516 377 Leggett & Platt, Inc. (g) 6,235 142 Lehman Brothers Holdings, Inc. 18,312 1,189 Lennar Corp., Class A 4,769 213 Lexmark International, Inc. * 3,602 195 CONTINUED 67 EQUITY INDEX FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Limited Brands, Inc. (g) 11,733 $ 295 Lincoln National Corp. 9,820 557 Linear Technology Corp. 10,384 336 Liz Claiborne, Inc. 3,574 126 Lockheed Martin Corp. 12,112 965 Loews Corp. 13,886 515 Louisiana-Pacific Corp. 3,632 73 Lowes Cos., Inc. 53,066 1,504 LSI Logic Corp. * 13,568 111 Lucent Technologies, Inc. * (g) 153,217 326 M&T Bank Corp. (g) 2,699 329 Manor Care, Inc. (g) 2,702 135 Marathon Oil Corp. 12,396 1,124 Marriott International, Inc., Class A (g) 11,183 393 Marsh & McLennan Cos., Inc. 18,791 508 Marshall & Ilsley Corp. 7,705 362 Masco Corp. (g) 13,585 363 Mattel, Inc. 13,320 240 Maxim Integrated Products, Inc. 10,968 322 MBIA, Inc. (g) 4,608 271 McCormick & Co. 4,531 159 McDonalds Corp. 42,617 1,508 McGraw-Hill Cos., Inc. 12,237 689 McKesson, Inc. 10,401 524 MeadWestvaco Corp. 6,195 162 Medco Health Solutions, Inc. * 10,317 612 MedImmune, Inc. * (g) 8,508 216 Medtronic, Inc. 41,281 2,086 Mellon Financial Corp. 14,144 495 Merck & Co., Inc. 74,643 3,006 Meredith Corp. 1,446 68 Merrill Lynch & Co., Inc. 31,602 2,301 MetLife, Inc. 25,946 1,349 MGIC Investment Corp. 2,990 170 Micron Technology, Inc. * (g) 24,800 387 Microsoft Corp. 300,045 7,211 Millipore Corp. * 1,818 114 Molex, Inc. 4,855 154 Molson Coors Brewing Co., Class B 1,970 141 Monsanto Co. 18,508 796 Monster Worldwide, Inc. * 4,390 176 Moodys Corp. 8,354 458 Morgan Stanley 36,632 2,436 Motorola, Inc. 84,474 1,923 Murphy Oil Corp. 5,681 292 Mylan Laboratories, Inc. (g) 7,190 158 Nabors Industries Ltd. * (g) 10,616 375 National City Corp. 18,553 668 National Semiconductor Corp. 11,547 269 National-Oilwell Varco, Inc. * 5,984 401 Navistar International Corp. * 2,110 47 NCR Corp. * (g) 6,225 200 Network Appliance, Inc. * 12,797 380 New York Times Co., Class A (g) 4,954 110 CONTINUED SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Newell Rubbermaid, Inc. (g) 9,467 $ 250 Newmont Mining Corp. 15,353 787 News Corp., Class A 80,903 1,557 NICOR, Inc. (g) 1,518 67 Nike, Inc., Class B (g) 6,457 510 NiSource, Inc. 9,325 212 Noble Corp. 4,712 338 Nordstrom, Inc. 7,365 253 Norfolk Southern Corp. 14,183 616 North Fork Bancorp., Inc. 15,910 451 Northern Trust Corp. (g) 6,339 362 Northrop Grumman Corp. 11,757 778 Novell, Inc. * 11,594 75 Novellus Systems, Inc. * (g) 4,352 110 Nucor Corp. 10,657 567 NVIDIA Corp. * (g) 12,056 267 Occidental Petroleum Corp. 14,647 1,578 Office Depot, Inc. * 9,840 355 Officemax, Inc. 2,433 100 Omnicom Group, Inc. 5,835 517 Oracle Corp. * 133,188 1,994 PACCAR, Inc. 5,702 460 Pactiv Corp. * 4,827 118 Pall Corp. 4,269 111 Parametric Technology Corp. * 3,823 59 Parker Hannifin Corp. 4,115 297 Patterson Cos, Inc. * (g) 4,742 158 Paychex, Inc. 11,430 391 Peoples Energy Corp. 1,314 55 Pepsi Bottling Group, Inc. 4,586 152 PepsiCo, Inc. 56,516 3,582 PerkinElmer, Inc. 4,331 78 Pfizer, Inc. 250,603 6,514 PG&E Corp. 11,873 495 Phelps Dodge Corp. 6,971 609 Pinnacle West Capital Corp. 3,393 146 Pitney Bowes, Inc. 7,592 314 Plum Creek Timber Co., Inc. (g) 6,305 215 PMC-Sierra, Inc. * 7,062 36 PNC Financial Services Group 10,123 717 PPG Industries, Inc. 5,665 349 PPL Corp. (g) 13,013 443 Praxair, Inc. 11,051 606 Principal Financial Group 9,473 512 Procter & Gamble Co. 112,229 6,307 Progress Energy, Inc. 8,652 377 Progressive Corp. 26,762 647 Prudential Financial, Inc. (g) 16,827 1,323 Public Service Enterprise Group, Inc. 8,600 580 Public Storage, Inc. (g) 2,830 227 Pulte Homes, Inc. (g) 7,284 208 QLogic Corp. * 5,514 96 QUALCOMM, Inc. 57,326 2,021 Quest Diagnostics, Inc. 5,558 334 CONTINUED 68 EQUITY INDEX FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Qwest Communications International, 53,537 $ 428 Inc. * (g) R.R. Donnelley & Sons Co. 7,391 216 RadioShack Corp. (g) 4,628 75 Raytheon Co. 15,260 688 Realogy Corp. - When Issued 8,552 216 Regions Financial Corp. 15,600 566 Reynolds American, Inc. 2,931 372 Robert Half International, Inc. 5,875 190 Rockwell Automation, Inc. 6,071 376 Rockwell Collins, Inc. 5,851 312 Rohm & Haas Co. 4,970 229 Rowan Cos., Inc. 3,770 128 Ryder Systems, Inc. 2,086 105 Sabre Group Holdings Corp., Class A 4,540 94 SAFECO Corp. 4,077 219 Safeway, Inc. 15,394 432 SanDisk Corp. * (g) 6,680 312 Sanmina-SCI Corp. * 18,223 63 Sara Lee Corp. 25,997 439 Schering-Plough Corp. 50,653 1,035 Schlumberger, Ltd. 40,353 2,697 Sealed Air Corp. 2,790 132 Sears Holdings Corp. * (g) 3,317 455 Sempra Energy 8,861 428 Sherwin-Williams Co. 3,810 193 Sigma-Aldrich Corp. (g) 2,290 159 SLM Corp. 14,052 707 Snap-On, Inc. 1,987 83 Solectron Corp. * 31,274 94 Southern Co. (g) 25,379 857 Southwest Airlines Co. 24,155 435 Sovereign Bancorp, Inc. 13,497 279 Sprint Nextel Corp. (g) 101,885 2,017 St. Jude Medical, Inc. * 12,345 456 St. Paul Cos. 23,812 1,091 Stanley Works (g) 2,418 110 Staples, Inc. (g) 24,902 538 Starbucks Corp. * 26,249 899 Starwood Hotels & Resorts Worldwide, 7,430 391 Inc. State Street Corp. 11,367 683 Stryker Corp. 10,001 455 Sun Microsystems, Inc. * 119,625 520 Sunoco, Inc. 4,536 315 SunTrust Banks, Inc. 12,436 981 SUPERVALU, Inc. 6,995 190 Symantec Corp. * 35,402 615 Symbol Technologies, Inc. 8,679 96 Synovus Financial Corp. 11,038 312 Sysco Corp. 21,154 584 T. Rowe Price Group, Inc. 9,082 375 Target Corp. 29,529 1,356 Teco Energy, Inc. 7,140 114 CONTINUED SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Tektronix, Inc. 2,861 $ 78 Tellabs, Inc. * 15,325 144 Temple-Inland, Inc. 3,779 161 Tenet Healthcare Corp. * (g) 16,097 95 Teradyne, Inc. * (g) 6,779 89 Texas Instruments, Inc. (g) 53,286 1,587 Textron, Inc. 4,449 400 The Black & Decker Corp. 2,599 183 The E.W. Scripps Co., Class A (g) 2,909 124 The Hershey Company (g) 6,074 334 The McClatchy Co., Class A 1 --# The Walt Disney Co. 75,065 2,229 Thermo Electron Corp. * 5,598 207 Tiffany & Co. (g) 4,810 152 Time Warner, Inc. 146,452 2,416 TJX Companies, Inc. 15,631 381 Torchmark Corp. (g) 3,432 208 Transocean, Inc. * 11,112 858 Tribune Co. 7,486 222 TXU Corp. 15,815 1,016 Tyco International Ltd. 69,653 1,817 Tyson Foods, Inc., Class A (g) 8,616 122 U.S. Bancorp. 60,873 1,948 Union Pacific Corp. 9,198 782 Unisys Corp. * 11,731 60 United Parcel Service, Inc. 37,096 2,556 United States Steel Corp. (g) 4,272 269 United Technologies Corp. 34,572 2,151 UnitedHealth Group, Inc. 46,068 2,204 Univision Communications, Inc. * 7,628 255 UNUMProvident Corp. 10,240 166 UST, Inc. (g) 5,520 279 V.F. Corp. (g) 3,003 204 Valero Energy 21,049 1,419 VeriSign, Inc. * 8,384 150 Verizon Communications, Inc. 99,771 3,374 Viacom Inc., Class B * 24,660 859 Vulcan Materials Co. 3,441 230 W.W. Grainger, Inc. 2,610 162 Wachovia Corp. (g) 55,012 2,950 Wal-Mart Stores, Inc. 85,514 3,806 Walgreen Co. 34,548 1,616 Washington Mutual, Inc. 32,858 1,469 Waste Management, Inc. 18,644 641 Waters Corp. * 3,540 144 Watson Pharmaceuticals, Inc. * 3,489 78 Weatherford International, Ltd. * 11,925 559 WellPoint, Inc. * 21,801 1,624 Wells Fargo & Co. 57,458 4,157 Wendys International, Inc. 3,988 240 Weyerhaeuser Co. 8,421 494 Whirlpool Corp. (g) 2,667 207 Whole Foods Market, Inc. (g) 4,791 276 Williams Cos., Inc. (g) 20,355 493 CONTINUED 69 EQUITY INDEX FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Windstream Corp. 16,216 $ 203 Wm. Wrigley Jr. Co. 7,593 348 Wyeth 46,033 2,231 Wyndham Worldwide Corp., W/I 6,842 229 Xcel Energy, Inc. (g) 13,868 278 Xerox Corp. * 31,406 442 Xilinx, Inc. (g) 11,748 238 XL Capital Ltd., Class A 6,166 393 XTO Energy, Inc. 12,454 585 Yahoo, Inc. * (g) 42,882 1,164 YUM! Brands, Inc. 9,301 419 Zimmer Holdings, Inc. * 8,487 537 Zions Bancorporation 3,629 298 ----------- TOTAL COMMON STOCKS 392,583 ----------- REAL ESTATE INVESTMENT TRUSTS (i) (0.6%) Archstone-Smith Trust 7,310 384 Equity Residential Properties Trust (g) 9,961 463 Kimco Realty Corp. (g) 7,237 284 ProLogis 8,378 464 Simon Property Group, Inc. 6,270 536 Vornado Realty Trust (g) 4,067 425 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS 2,556 ----------- INVESTMENTS IN AFFILIATES (h) (3.2%) Fifth Third Institutional Money Market Fund 12,850,518 12,851 ----------- TOTAL INVESTMENTS IN AFFILIATES 12,851 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (9.5%) Pool of various securities for Fifth Third Funds $ 38,883 38,883 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 38,883 ----------- TOTAL INVESTMENTS (COST $228,416) + - 109.6% 446,873 LIABILITIES IN EXCESS OF OTHER ASSETS - (9.6)% (39,202) ----------- NET ASSETS - 100.0% $ 407,671 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. BALANCED FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (61.4%) Abbott Laboratories 18,000 $ 859 Alberto-Culver Co. 17,500 853 Amgen, Inc. * 10,000 697 Anixter International, Inc. (g) 15,900 877 Archer-Daniels-Midland Co. 21,000 924 Associated Banc-Corp. 24,000 753 Bank of America Corp. 18,250 940 Becton, Dickinson & Co. 13,500 890 Best Buy Co., Inc. 19,000 861 Boeing Co. 12,000 929 Borg Warner, Inc. 11,200 672 Chevron Corp. 9,000 592 Cisco Systems, Inc. * 34,250 611 ConocoPhillips 15,000 1,029 Covance, Inc. * 11,000 702 Deere & Co. 11,000 798 DENTSPLY International, Inc. 32,000 1,002 Ecolab, Inc. 16,500 711 Exelon Corp. 15,500 897 Fiserv, Inc. * 22,500 982 Gardner Denver, Inc. * 26,500 918 GlaxoSmithKline PLC ADR 15,000 830 Google, Inc., Class A * 1,450 561 Halliburton Co. 23,000 767 Harley-Davidson, Inc. 12,000 684 Hormel Foods Corp. 25,000 943 Illinois Tool Works, Inc. 23,000 1,052 J.P. Morgan Chase & Co. 19,000 867 Johnson & Johnson 13,500 844 Johnson Controls, Inc. 6,000 461 Joy Global, Inc. 10,000 375 Kellogg Co. (g) 20,000 964 Limited Brands, Inc. 30,000 755 Lincoln National Corp. 15,600 884 Manpower, Inc. 16,000 952 Marshall & Ilsley Corp. 21,500 1,010 McDonald's Corp. 32,000 1,132 Medtronic, Inc. 16,000 808 Merck & Co., Inc. 17,000 685 MGIC Investment Corp. (g) 12,000 683 Noble Corp. 7,300 524 Northern Trust Corp. (g) 20,000 1,141 Oracle Corp. * 62,000 928 Oshkosh Truck Corp. 12,250 525 Peabody Energy Corp. (g) 11,700 584 PepsiCo, Inc. 16,000 1,014 Procter & Gamble Co. 19,000 1,068 Prudential Financial, Inc. (g) 9,500 747 Quest Diagnostics, Inc. 10,500 631 Regal-Beloit Corp. 18,000 716 Reynolds American, Inc. 5,800 735 Rockwell Automation, Inc. 15,000 930 Schlumberger, Ltd. 10,000 669 Stericycle, Inc. * (g) 14,000 941 CONTINUED 70 BALANCED FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Target Corp. 17,000 $ 781 Tellabs, Inc. * 61,000 573 The Walt Disney Co. 27,600 819 U.S. Bancorp. 29,500 944 Walgreen Co. 17,750 830 Weatherford International, Ltd. * 15,500 726 Wells Fargo & Co. 14,250 1,031 Wisconsin Energy Corp. (g) 23,000 971 ----------- TOTAL COMMON STOCKS 50,582 ----------- CORPORATE BONDS (30.1%) American Home Mortgage Investment $ 1,500 1,420 Trust, Series 2005-2, Class 5A4D, 5.33%, 9/25/35 (d) Bank One Capital III, 8.75%, 9/1/30 675 844 Bear Stearns Adjustable Rate Mortgage 637 624 Trust, Series 2004-10, Class 12A3, 4.67%, 1/25/35 (d) Bear Stearns Adjustable Rate Mortgage 965 942 Trust, Series 2005-12, Class 13A1, 5.47%, 2/25/36 (d) Bear Stearns Alternative-A Trust, Series 456 458 2005-9, 5.85%, 11/25/35 (f) Bear Stearns Commercial Mortgage 363 369 Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 Bear Stearns Commercial Mortgage 700 679 Securities, Inc., Series 2004-T14, Class A4, 5.20%, 1/12/41 (d) Chase Mortgage Finance Corp., 5.00%, 1,559 1,489 11/25/33 Chase Mortgage Finance Corp., Series 1,961 1,937 2005-A1, Class 2A2, 5.25%, 12/25/35 (d) Chaseflex Trust, Series 2006-1, Class 400 400 A2A, 5.94%, 6/25/36, (d) Countrywide Alternative Loan Trust, 268 269 6.50%, 9/25/34, (d) Countrywide Alternative Loan Trust, 423 420 Series 2005-74T1, Class A1, 6.00%, 1/25/36 Credit Based Asset Service and 515 503 Securitization, Series 2005-CB8, Class AF5, 5.65%, 12/25/35 (d) DaimlerChrysler, 8.50%, 1/18/31 65 75 Duke Energy Corp., 6.45%, 10/15/32 225 228 First Union-Lehman Brothers, 7.00%, 630 664 4/18/29 (e) General Electric Capital Corp., 6.75%, 175 190 3/15/32 General Motors Acceptance Corp., 160 160 Mortgage Corp. Loan Trust, 5.62%, 12/25/20 (d) CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED General Motors Acceptance Corp., $ 385 $ 377 Mortgage Corp. Loan Trust, 4.34%, 11/1/34 General Motors Acceptance Corp., 1,000 1,002 Mortgage Corp. Loan Trust, 5.58%, 3/25/35 (d) Green Tree Financial Corp., 7.60%, 6/15/25 270 276 Green Tree Financial Corp., Series 43 43 1998-6, Class A6, 6.27%, 6/1/30 Greenwich Capital Commercial Funding 1,000 964 Corp., Series 2002-C1, Class A4, 4.95%, 1/11/35 Greenwich Capital Commercial Funding 700 682 Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 GS Mortgage Securities Corp. II, Series 1,000 978 2004-GG2, Class A3, 4.60%, 8/10/38 IBM Corp., 5.88%, 11/29/32 250 243 IndyMac Index Mortgage Loan Trust, 338 340 Series 2005-AR9, 5.45%, 7/25/35, (d) JP Morgan Mortgage Trust, Series 406 396 2005-A1, Class 2A1, 4.88%, 2/25/35, (d) JP Morgan Mortgage Trust, Series 2,000 1,932 2005-A2, Class 3A2, 4.93%, 4/25/35 Morgan Stanley Capital I, 5.11%, 800 770 6/15/40 Morgan Stanley Dean Witter Capital I, 700 669 4.74%, 11/13/36 Morgan Stanley Mortgage Loan Trust, 800 773 5.00%, 8/25/19 Motorola, Inc., 6.50%, 11/15/28 205 207 Residential Accredit Loans, Inc., 5.66%, 680 680 3/25/34 (d) (f) Residential Asset Securities Corp., 67 67 5.63%, 3/25/34 (d) (f) Time Warner Entertainment, 8.38%, 120 135 7/15/33 Trans-Canada Pipeline, 5.60%, 3/31/34 195 182 Truck Retail Installment Paper Corp., 2,000 2,005 5.47%, 12/15/16 (d) (e) (f) Washington Mutual, Series 2004-AR3, Class A-2, 4.24%, 6/25/34 379 370 ----------- TOTAL CORPORATE BONDS 24,762 ----------- FOREIGN BONDS (0.3%) France Telecom, 8.75%, 3/1/31 200 247 ----------- TOTAL FOREIGN BONDS 247 ----------- CONTINUED 71 BALANCED FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- TREASURY BONDS (0.2%) 5.25%, 2/15/29 150 $ 152 ----------- TOTAL TREASURY BONDS 152 ----------- U.S. GOVERNMENT AGENCIES (10.4%) FANNIE MAE (6.5%) 5.50%, 2/1/25 243 239 5.00%, 5/1/25 442 424 7.50%, 6/1/27 34 36 7.50%, 12/1/27 97 101 7.00%, 9/1/31 166 170 7.00%, 6/1/32 14 15 6.00%, 8/25/33 (d) 440 430 7.00%, 9/1/34 12 13 6.00%, 9/1/35 645 641 5.50%, 2/1/36 328 318 5.00%, 9/1/36 TBA 500 473 5.50%, 9/1/36 TBA 2,625 2,548 ----------- 5,408 ----------- FREDDIE MAC (3.6%) 4.50%, 8/15/16 1,585 1,515 7.50%, 7/1/27 13 13 7.50%, 8/1/27 46 48 7.50%, 11/1/27 31 32 7.50%, 12/1/27 58 60 6.50%, 5/1/31 174 177 6.50%, 11/1/31 547 556 7.00%, 1/1/32 7 8 7.00%, 8/1/32 33 34 4.50%, 6/1/34 179 165 4.50%, 9/1/34 222 205 6.00%, 10/1/34 144 143 ----------- 2,956 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.3%) 6.50%, 4/15/32 123 126 7.00%, 7/20/32 78 80 ----------- 206 ----------- TOTAL U.S. GOVERNMENT AGENCIES 8,570 ----------- INVESTMENTS IN AFFILIATES (h) (0.0%) Fifth Third Institutional Money Market Fund 20,564 21 ----------- TOTAL INVESTMENTS IN AFFILIATES 21 ----------- CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- MUTUAL FUNDS (1.0%) Materials Select Sector SPDR Trust (g) 26,500 $ 819 ----------- TOTAL MUTUAL FUNDS 819 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (7.8%) Pool of various securities for Fifth Third Funds $ 6,463 6,463 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 6,463 ----------- TOTAL INVESTMENTS (COST $90,883)+ - 111.2% 91,616 LIABILITIES IN EXCESS OF OTHER ASSETS - (11.2)% (9,262) ----------- NET ASSETS - 100.0% $ 82,354 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 72 MICRO CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (91.0%) A. T. Cross Co., Class A * 151,240 $ 862 Abigail Adams National Bancorp, Inc. 43,000 602 ActivIdentity Corp. * (g) 316,130 1,505 American Bancorp of New Jersey, Inc. 97,150 1,156 Analysts International Corp. * 318,080 690 Anaren, Inc. * 13,000 232 Angelica Corp. 59,230 998 APAC Customer Services, Inc. * 579,930 1,264 Apogee Enterprises, Inc. 160,990 2,313 @Road, Inc. * (g) 246,850 1,079 Audiovox Corp., Class A * 87,820 1,100 B of I Holding, Inc. * 169,800 1,240 Benihana, Inc., Class A * 39,000 854 Benjamin Franklin Bancorp, Inc. 89,200 1,245 Berkshire Hills Bancorp, Inc. 49,770 1,737 Beverly National Corp. 13,009 312 BioScrip, Inc. * 413,791 1,643 Bombay Co., Inc. * (g) 585,430 1,270 Boykin Lodging Co. * 84,890 912 Bradley Pharmaceuticals, Inc. * (g) 79,030 801 Brush Engineered Materials, Inc. * 50,750 1,171 BUCA, Inc. * (g) 176,610 945 CalAmp Corp. * (g) 66,350 417 Calgon Carbon Corp. (g) 261,480 1,585 Catalyst Semiconductor, Inc. * 90,000 293 CBIZ, Inc. * (g) 138,550 1,022 Center Bancorp, Inc. (g) 85,860 1,249 Cepheid, Inc. * (g) 56,590 516 Compudyne Corp. * (g) 124,160 654 Covenant Transport, Inc., Class A * 65,300 856 Crawford & Co., Class A 3,920 27 Crawford & Co., Class B 167,800 1,297 Cutter & Buck, Inc. 56,590 603 Deb Shops, Inc. 31,220 742 DHB Industries, Inc. * 285,000 775 Digimarc Corp. * 188,540 1,173 Dot Hill Systems Corp. * 192,200 609 EFJ, Inc. * (g) 304,780 1,991 Emerson Radio Corp. * (g) 81,270 245 Epic Bancorp 24,000 354 First Clover Leaf Financial Corp. 82,000 918 Frisch's Restaurants, Inc. 15,400 360 Government Properties Trust, Inc. 191,230 1,722 Hancock Fabrics, Inc. (g) 492,740 1,617 Hartmarx Corp. * 303,100 1,897 HealthTronics, Inc. * 1,120 7 Heidrick & Struggles International, Inc. * 12,680 410 Hersha Hospitality Trust 173,100 1,598 Hooper Holmes, Inc. 370,150 1,110 Input/Output, Inc. * (g) 257,590 2,532 K2, Inc. * 80,010 842 KMG America Corp. * 157,900 1,318 Lightbridge, Inc. * 79,030 913 CONTINUED SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Lydall, Inc. * 98,550 $ 883 MAIR Holdings, Inc. * (g) 71,220 395 Material Sciences Corp. * 185,760 1,750 Matrix Bancorp, Inc. * 14,902 354 Maverick Oil & Gas, Inc. * 400,800 261 Maxwell Technologies, Inc. * (g) 84,500 1,526 Meade Instruments Corp. * 104,450 226 Medical Action Industries, Inc. * 72,470 1,607 MEDTOX Scientific, Inc. * 125,870 1,123 MHI Hospitality Corp. 166,800 1,490 Michael Baker Corp. * 34,010 718 Monterey Pasta Co. * (g) 316,040 1,673 Nanometrics, Inc. * 59,520 564 National Atlantic Holdings Corp. * 196,130 1,912 National Dentex Corp. * 88,850 2,039 North Pointe Holdings Corp. * 78,840 575 Northwest Pipe Co. * 25,030 675 On Assignment, Inc. * (g) 156,110 1,335 OSI Systems, Inc. * (g) 113,180 2,036 Osteotech, Inc. * 344,430 1,336 Perceptron, Inc. * 86,073 693 Pharmacopeia Drug Discovery, Inc. * 187,330 849 Plato Learning, Inc. * 208,810 1,103 Powell Industries, Inc. * 61,470 1,440 ProCentury Corp. 99,090 1,446 R.G. Barry Corp. * 102,450 674 Rehabcare Group, Inc. * 55,390 1,037 Rockford Corp. * (g) 193,190 728 Rocky Brands, Inc. * (g) 79,540 881 Russ Berrie & Co., Inc. * 10,000 110 SEMCO Energy, Inc. * 168,310 1,035 SonicWALL, Inc. * 216,980 2,169 Southcoast Financial Corp. * 49,900 1,053 Standard Register Co. 77,080 948 StealthGas, Inc. 68,600 851 Stepan Co. 59,970 1,799 Storm Cat Energy Corp. * 331,900 730 Superior Uniform Group, Inc. 59,440 713 Symmetricom, Inc. * (g) 266,990 1,890 Synplicity, Inc. * (g) 168,900 966 Tasty Baking Co. 80,980 611 Texas United Bancshares, Inc. (g) 56,590 1,838 The Inventure Group, Inc. * 542,890 1,270 The Rowe Cos. * 89,600 76 Top Tankers, Inc. (g) 99,510 607 U.S. Xpress Enterprises, Inc., A Shares * 24,030 559 Ultratech, Inc. * 44,000 666 Universal Electronics, Inc. * 30,250 535 Vignette Corp. * 68,250 887 White Electronic Designs Corp. * 188,310 939 Willbros Group, Inc. * 98,550 1,685 Wolverine Tube, Inc. * (g) 246,850 1,077 Zomax, Inc. * 321,990 470 ----------- TOTAL COMMON STOCKS 108,396 ----------- CONTINUED 73 MICRO CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- INVESTMENT COMPANIES (0.8%) Equus II, Inc. 86,996 $ 611 MVC Capital, Inc. 29,270 387 ----------- TOTAL INVESTMENT COMPANIES 998 ----------- INVESTMENTS IN AFFILIATES (h) (7.5%) Fifth Third Institutional Money Market Fund 8,993,998 8,994 ----------- TOTAL INVESTMENTS IN AFFILIATES 8,994 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (19.4%) Pool of various securities for Fifth Third Funds $ 23,113 23,113 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 23,113 ----------- TOTAL INVESTMENTS (COST $126,608)+ - 118.7% 141,501 LIABILITIES IN EXCESS OF OTHER ASSETS - (18.7)% (22,271) ----------- NET ASSETS - 100.0% $ 119,230 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. SMALL CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (96.8%) Agilysys, Inc. 97,975 $ 1,535 Alexander & Baldwin, Inc. 39,000 1,564 Anixter International, Inc. (g) 38,625 2,129 Arkansas Best Corp. 32,400 1,440 Ashford Hospitalilty Trust (g) 151,075 1,775 Asset Acceptance Capital Corp. * 65,300 1,187 Axcelis Technologies, Inc. * (g) 263,799 1,459 Big Lots, Inc. * (g) 140,000 2,263 Bob Evans Farms, Inc. 81,825 2,254 Briggs & Stratton Corp. (g) 52,900 1,354 Cabot Microelectronics Corp. * (g) 64,625 1,925 Casey's General Stores, Inc. 78,400 1,774 Cash America International, Inc. 17,050 584 Coca-Cola Femsa, SA de CV ADR 86,700 2,638 Community Bank System, Inc. 83,550 1,768 Cost Plus, Inc. * 114,650 1,547 CTS Corp. 120,500 1,736 Endurance Specialty Holdings, Ltd. 53,575 1,627 EnerSys * 185,100 3,337 Ferro Corp. 112,000 1,809 Glatfelter 96,550 1,506 Hawaiian Electric Industries, Inc. (g) 48,500 1,390 Headwaters, Inc. * (g) 60,625 1,403 Hooper Holmes, Inc. 210,500 632 Houston Exploration Co. * 25,000 1,597 Inter-Tel, Inc. 61,725 1,323 Iowa Telecommunications Services, Inc. 128,350 2,500 Irwin Financial Corp. 133,125 2,614 Jackson Hewitt Tax Service, Inc. 37,225 1,270 Jo-Ann Stores, Inc. * 42,700 606 Journal Communications, Inc. 132,625 1,399 Kindred Healthcare, Inc. * 98,950 2,615 Kronos, Inc. * (g) 60,300 1,750 La-Z-Boy, Inc. (g) 134,275 1,712 Lithia Motors, Inc., Class A 39,650 1,117 Lubrizol Corp. 52,675 2,253 Molina Healthcare, Inc. * 73,175 2,425 Newalliance Bancshares, Inc. 107,350 1,515 Orthofix International N.V. * 31,275 1,232 Overseas Shipholding Group, Inc. (g) 35,650 2,296 Performance Food Group Co. * (g) 77,925 2,172 Perry Ellis International, Inc. * 77,500 2,004 Photronics, Inc. * (g) 90,750 1,268 Pioneer Drilling Co. * 42,075 642 Platinum Underwriters Holdings, Ltd. 100,000 2,829 Polyone Corp. * (g) 265,900 2,220 Quebecor World, Inc. 245,000 2,638 RailAmerica, Inc. * 112,000 1,124 Sanderson Farms, Inc. (g) 57,950 1,501 Schawk, Inc. (g) 97,800 1,620 Schweitzer-Mauduit International, Inc. 117,400 2,375 CONTINUED 74 SMALL CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Semitool, Inc. * 172,500 $ 1,531 Service Corp. International 315,400 2,369 South Financial Group, Inc. 59,000 1,594 South Jersey Industries, Inc. 43,000 1,276 Stanley Furniture Co., Inc. (g) 44,275 1,002 Tennant Co. 76,700 1,823 The Steak n Shake Co. * 106,150 1,569 Tidewater, Inc. 17,000 811 Tsakos Energy Navigation Ltd. 56,225 2,514 U-Store-It Trust 102,525 1,954 UCBH Holdings, Inc. (g) 121,250 2,023 UMB Financial Corp. (g) 53,100 1,825 Vectren Corp. 68,000 1,891 Veritas DGC, Inc. * (g) 25,400 1,455 Westar Energy, Inc. (g) 97,400 2,250 Wintrust Financial Corp. (g) 34,675 1,665 YRC Worldwide, Inc. * (g) 34,400 1,368 ----------- TOTAL COMMON STOCKS 118,173 ----------- INVESTMENTS IN AFFILIATES (h) (2.8%) Fifth Third Institutional Money Market Fund 3,468,192 3,468 ----------- TOTAL INVESTMENTS IN AFFILIATES 3,468 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (25.1%) Pool of various securities for Fifth Third Funds $ 30,712 30,712 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 30,712 ----------- TOTAL INVESTMENTS (COST $146,806)+ - 124.7% 152,353 LIABILITIES IN EXCESS OF OTHER ASSETS - (24.7)% (30,171) ----------- NET ASSETS - 100.0% $ 122,182 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. MULTI CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (98.2%) 3M Co. 35,000 $ 2,464 Abbott Laboratories 103,700 4,954 Alcoa, Inc. 107,600 3,223 Allstate Corp. 25,000 1,421 Alltel Corp. 53,900 2,974 American Electric Power Co. 78,800 2,846 American Express Co. 48,800 2,541 American International Group, Inc. 134,000 8,129 Anadarko Petroleum Corp. 78,000 3,568 Andrew Corp. * (g) 195,200 1,649 Applied Materials, Inc. (g) 224,500 3,534 AT&T, Inc. (g) 75,000 2,249 Autoliv, Inc. 25,000 1,404 Bank of America Corp. 146,400 7,545 Bank of New York Co., Inc. 205,000 6,890 Big Lots, Inc. * (g) 209,800 3,390 Bob Evans Farms, Inc. 122,000 3,360 Borg Warner, Inc. 48,800 2,928 Cadbury Schweppes PLC ADR (g) 58,600 2,301 Charles Schwab Corp. 219,000 3,478 Chevron Corp. 78,100 5,137 CIGNA Corp. 43,900 4,006 Coherent, Inc. * (g) 97,600 3,129 Comerica, Inc. 40,000 2,342 ConAgra, Inc. 195,200 4,197 ConocoPhillips 107,400 7,372 CSX Corp. 13,900 843 Deere & Co. 28,600 2,076 Dover Corp. (g) 39,000 1,838 Dow Chemical Co. 100,000 3,458 Duke Energy Corp. 107,400 3,256 E. I. du Pont de Nemours & Co. 100,000 3,966 Edison International 75,000 3,104 Exxon Mobil Corp. 120,000 8,129 Federated Department Stores, Inc. 66,930 2,350 Florida East Coast Industries, Inc. (g) 60,000 2,810 Foot Locker, Inc. 78,100 2,122 FPL Group, Inc. 75,000 3,236 Gannett Co., Inc. 10,000 521 General Dynamics Corp. 48,400 3,243 General Electric Corp. 107,400 3,511 Georgia Gulf Corp. (g) 44,500 1,133 Global Industries, Ltd. * 120,000 2,002 Goldman Sachs Group, Inc. 15,000 2,291 H.J. Heinz Co. 68,300 2,867 Harris Corp. 82,500 3,758 Hartford Financial Services Group, Inc. 39,000 3,309 Health Management Associates, Inc., Class A (g) 93,300 1,900 Hewlett-Packard Co. 86,600 2,763 Home Depot, Inc. 87,800 3,048 Honda Motor Co., Ltd. 73,200 2,412 Honeywell International, Inc. 120,000 4,644 Horace Mann Educators Corp. 89,700 1,522 CONTINUED 75 MULTI CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS, CONTINUED Input/Output, Inc. * (g) 48,800 $ 480 Intel Corp. 245,000 4,410 J.P. Morgan Chase & Co. 195,200 8,905 JAKKS Pacific, Inc. * (g) 97,600 1,609 Johnson & Johnson 50,000 3,128 Jones Apparel Group, Inc. 48,800 1,444 K2, Inc. * 53,400 561 KeyCorp 97,600 3,601 Kraft Foods, Inc. 50,000 1,620 Laboratory Corp. of America Holdings * (g) 43,900 2,827 Lubrizol Corp. 83,000 3,550 Manpower, Inc. 35,000 2,082 Marathon Oil Corp. (g) 92,100 8,348 Masco Corp. (g) 60,000 1,604 McDonald's Corp. 107,400 3,801 Methode Electronics, Inc. 111,000 888 MetLife, Inc. (g) 43,900 2,283 Molson Coors Brewing Co., Class B 40,000 2,858 Motorola, Inc. 73,200 1,666 National City Corp. 110,000 3,960 Natuzzi S.p.A. ADR * 19,000 131 New York Community Bancorp, Inc. 97,600 1,594 New York Times Co., Class A (g) 120,000 2,660 NiSource, Inc. 83,000 1,888 Pall Corp. 136,200 3,552 Pepco Holdings, Inc. 161,000 3,944 Pfizer, Inc. 281,000 7,303 Piper Jaffray Cos., Inc. * (g) 38,800 1,986 Pitney Bowes, Inc. 25,000 1,033 Royal Dutch Shell PLC ADR, A Shares 58,600 4,149 Sabre Group Holdings Corp., Class A 25,000 518 Safeway, Inc. (g) 195,200 5,480 Schering-Plough Corp. 165,900 3,391 Snap-On, Inc. (g) 29,300 1,231 SonicWALL, Inc. * 50,000 500 Standard Register Co. 195,200 2,401 Stanley Works (g) 73,200 3,321 SunTrust Banks, Inc. 43,900 3,462 SUPERVALU, Inc. (g) 126,900 3,440 Symmetricom, Inc. * (g) 98,200 695 TD Ameritrade Holding Corp. (g) 97,000 1,589 The Walt Disney Co. 81,800 2,429 Tidewater, Inc. 55,000 2,623 Triad Hospitals, Inc. * (g) 50,000 1,949 Tyson Foods, Inc., Class A 250,000 3,538 U.S. Bancorp. 78,100 2,499 UCBH Holdings, Inc. (g) 50,000 834 Union Pacific Corp. 28,600 2,431 United Technologies Corp. 19,500 1,213 UST, Inc. (g) 25,000 1,264 Verizon Communications, Inc. 246,000 8,321 Windstream Corp. 55,729 698 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Wyeth 39,000 $ 1,890 YRC Worldwide, Inc. * (g) 29,300 1,166 ----------- TOTAL COMMON STOCKS 317,891 ----------- INVESTMENTS IN AFFILIATES (h) (2.9%) Fifth Third Institutional Money Market Fund 9,515,174 9,515 ----------- TOTAL INVESTMENTS IN AFFILIATES 9,515 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (16.2%) Pool of various securities for Fifth Third Funds $ 52,482 52,482 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 52,482 ----------- TOTAL INVESTMENTS (COST $309,022)+ - 117.3% 379,888 LIABILITIES IN EXCESS OF OTHER ASSETS - (17.3)% (55,990) ----------- NET ASSETS - 100.0% $ 323,898 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 76 DISCIPLINED LARGE CAP VALUE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (97.2%) 3M Co. 194,074 $ 13,663 Abbott Laboratories 342,575 16,366 Alcoa, Inc. 345,921 10,360 Allstate Corp. 86,480 4,914 American International Group, Inc. 237,675 14,420 Applied Materials, Inc. 302,680 4,764 AT&T, Inc. (g) 426,712 12,798 Bank of America Corp. 367,540 18,939 Bank of New York Co., Inc. 428,220 14,392 Bristol-Myers Squibb Co. (g) 285,335 6,839 Carnival Corp. (g) 302,681 11,792 Chevron Corp. 345,281 22,713 CIT Group, Inc. 65,091 2,988 ConAgra, Inc. 578,095 12,429 ConocoPhillips 347,649 23,863 Deere & Co. 128,465 9,323 Dow Chemical Co. 246,227 8,514 E. I. du Pont de Nemours & Co. 88,041 3,492 Edison International 132,345 5,476 Embarq Corp. * (g) 17,807 806 Exxon Mobil Corp. 302,681 20,504 Federated Department Stores, Inc. 67,926 2,385 Fiserv, Inc. * 172,960 7,551 Fortune Brands, Inc. 87,858 6,371 FPL Group, Inc. (g) 172,510 7,443 Gannett Co., Inc. (g) 256,932 13,391 General Dynamics Corp. 42,671 2,860 Hartford Financial Services Group, Inc. 151,340 12,840 Health Management Associates, Inc., Class A (g) 261,925 5,333 Honda Motor Co., Ltd. 432,401 14,248 Honeywell International, Inc. 259,440 10,040 IBM Corp. 107,820 8,347 Intel Corp. 648,601 11,675 J.P. Morgan Chase & Co. 487,315 22,232 Johnson & Johnson 85,342 5,338 Kraft Foods, Inc. 341,370 11,060 Lubrizol Corp. 174,493 7,463 Manpower, Inc. 45,478 2,705 Marathon Oil Corp. 216,200 19,596 McDonald's Corp. 164,529 5,823 MetLife, Inc. (g) 428,220 22,267 Molson Coors Brewing Co., Class B 215,639 15,407 Morgan Stanley 302,680 20,128 National City Corp. 389,160 14,010 Parker Hannifin Corp. 108,101 7,809 Pfizer, Inc. 583,740 15,171 Pitney Bowes, Inc. 216,200 8,933 R.R. Donnelley & Sons Co. 172,961 5,049 Sprint Nextel Corp. (g) 345,921 6,849 SunTrust Banks, Inc. 237,820 18,757 The Black & Decker Corp. 65,779 4,638 United Technologies Corp. 151,340 9,412 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED UST, Inc. (g) 367,540 $ 18,579 Verizon Communications, Inc. 351,108 11,874 ----------- TOTAL COMMON STOCKS 594,939 ----------- INVESTMENTS IN AFFILIATES (h) (2.7%) Fifth Third Institutional Money Market Fund 16,767,126 16,767 ----------- TOTAL INVESTMENTS IN AFFILIATES 16,767 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (12.5%) Pool of various securities for Fifth Third Funds $ 76,631 76,631 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 76,631 ----------- TOTAL INVESTMENTS (COST $595,316) + - 112.4% 688,337 LIABILITIES IN EXCESS OF OTHER ASSETS - (12.4)% (75,704) ----------- NET ASSETS - 100.0% $ 612,633 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 77 LIFEMODEL AGGRESSIVE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- INVESTMENTS IN AFFILIATES (h) (100.8%) Fifth Third Disciplined Large Cap Value Fund 2,138,166 $ 31,474 Fifth Third Institutional Money Market Fund 14,123,454 14,123 Fifth Third International Equity Fund 1,583,816 20,320 Fifth Third Large Cap Core Fund 1,624,568 24,628 Fifth Third Mid Cap Growth Fund 940,799 15,570 Fifth Third Multi Cap Value Fund 487,257 12,513 Fifth Third Quality Growth Fund * 2,590,262 40,590 Fifth Third Small Cap Growth Fund * 551,568 7,777 Fifth Third Small Cap Value Fund 316,644 6,615 ----------- TOTAL INVESTMENTS IN AFFILIATES 173,610 ----------- TOTAL INVESTMENTS (COST $149,485) + -100.8% 173,610 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8)% (1,457) ----------- NET ASSETS - 100.0% $ 172,153 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. LIFEMODEL MODERATELY AGGRESSIVE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- INVESTMENTS IN AFFILIATES (h) (100.5%) Fifth Third Bond Fund 1,422,679 $ 13,772 Fifth Third Disciplined Large Cap Value Fund 3,264,000 48,046 Fifth Third High Yield Bond Fund 1,820,574 17,732 Fifth Third Institutional Money Market Fund 18,150,509 18,151 Fifth Third Intermediate Bond Fund 2,600,867 24,734 Fifth Third International Equity Fund 2,649,814 33,997 Fifth Third Large Cap Core Fund 2,332,802 35,365 Fifth Third Mid Cap Growth Fund 1,316,796 21,793 Fifth Third Multi Cap Value Fund 716,418 18,398 Fifth Third Quality Growth Fund * 3,948,522 61,873 Fifth Third Short Term Bond Fund 1,819,794 16,833 Fifth Third Small Cap Growth Fund * 697,957 9,841 Fifth Third Small Cap Value Fund 383,329 8,008 ----------- TOTAL INVESTMENTS IN AFFILIATES 328,543 ----------- TOTAL INVESTMENTS (COST $288,443) + - 100.5% 328,543 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (1,476) ----------- NET ASSETS - 100.0% $ 327,067 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 78 LIFEMODEL MODERATE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- INVESTMENTS IN AFFILIATES (h) (100.0%) Fifth Third Bond Fund 4,856,134 $ 47,007 Fifth Third Disciplined Large Cap Value Fund 3,725,663 54,842 Fifth Third High Yield Bond Fund 2,912,761 28,370 Fifth Third Institutional Money Market Fund 25,058,109 25,058 Fifth Third Intermediate Bond Fund 8,757,840 83,288 Fifth Third International Equity Fund 3,253,833 41,747 Fifth Third Large Cap Core Fund 2,911,152 44,133 Fifth Third Mid Cap Growth Fund 1,527,459 25,279 Fifth Third Multi Cap Value Fund 794,980 20,415 Fifth Third Quality Growth Fund * 4,642,525 72,749 Fifth Third Short Term Bond Fund 6,156,152 56,944 Fifth Third Small Cap Growth Fund * 766,531 10,808 Fifth Third Small Cap Value Fund 481,187 10,052 ----------- TOTAL INVESTMENTS IN AFFILIATES 520,692 ----------- TOTAL INVESTMENTS (COST $490,176) + - 100.0% 520,692 LIABILITIES IN EXCESS OF OTHER ASSETS - 0.0% (50) ----------- NET ASSETS - 100.0% $ 520,642 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. LIFEMODEL MODERATELY CONSERVATIVE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- INVESTMENTS IN AFFILIATES (h) (101.1%) Fifth Third Bond Fund 1,222,957 $ 11,838 Fifth Third Disciplined Large Cap Value Fund 661,858 9,743 Fifth Third High Yield Bond Fund 524,542 5,109 Fifth Third Institutional Money Market Fund 7,336,014 7,336 Fifth Third Intermediate Bond Fund 2,328,766 22,146 Fifth Third International Equity Fund 636,997 8,173 Fifth Third Large Cap Core Fund 417,976 6,337 Fifth Third Mid Cap Growth Fund 197,124 3,262 Fifth Third Multi Cap Value Fund 106,824 2,743 Fifth Third Quality Growth Fund * 768,961 12,050 Fifth Third Short Term Bond Fund 1,543,839 14,280 Fifth Third Small Cap Growth Fund * 72,773 1,026 Fifth Third Small Cap Value Fund 40,140 839 ----------- TOTAL INVESTMENTS IN AFFILIATES 104,882 ----------- TOTAL INVESTMENTS (COST $97,364) + - 101.1% 104,882 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.1)% (1,112) ----------- NET ASSETS - 100.0% $ 103,770 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 79 LIFEMODEL CONSERVATIVE FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- INVESTMENTS IN AFFILIATES (h) (100.3%) Fifth Third Bond Fund 994,207 $ 9,624 Fifth Third Disciplined Large Cap Value Fund 215,011 3,165 Fifth Third High Yield Bond Fund 283,259 2,759 Fifth Third Institutional Money Market Fund 2,663,302 2,663 Fifth Third Intermediate Bond Fund 1,728,204 16,436 Fifth Third International Equity Fund 147,962 1,898 Fifth Third Large Cap Core Fund 101,863 1,544 Fifth Third Mid Cap Growth Fund 32,270 534 Fifth Third Multi Cap Value Fund 18,807 483 Fifth Third Quality Growth Fund * 253,893 3,978 Fifth Third Short Term Bond Fund 1,180,805 10,922 Fifth Third Small Cap Growth Fund * 30,127 425 Fifth Third Small Cap Value Fund 16,450 344 ----------- TOTAL INVESTMENTS IN AFFILIATES 54,775 ----------- TOTAL INVESTMENTS (COST $54,123) + - 100.3% 54,775 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (183) ----------- NET ASSETS - 100.0% $ 54,592 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. STRATEGIC INCOME FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS (7.2%) Altria Group, Inc. 22,650 $ 1,811 American Capital Strategies Ltd. (g) 15,400 539 Bank of America Corp. 19,900 1,025 BB&T Corp. 4,800 202 Chevron Corp. 8,430 555 Citigroup, Inc. 16,925 818 Duke Energy Corp. 25,800 782 FPL Group, Inc. 13,650 589 General Electric Corp. 10,735 351 Marshall & Ilsley Corp. 4,400 207 PepsiCo, Inc. 1,800 114 Procter & Gamble Co. 11,030 620 Southern Co. 14,900 503 Sysco Corp. 9,525 263 U.S. Bancorp. 20,000 640 Verizon Communications, Inc. 6,950 235 Wachovia Corp. 11,475 615 Wells Fargo & Co. 15,945 1,153 ----------- TOTAL COMMON STOCKS 11,022 ----------- CORPORATE BONDS (24.5%) AMVESCAP PLC, 5.38%, 2/27/13 $ 500 484 Bankers Trust New York, 7.25%, 10/15/11 1,000 1,078 Bear Stearns Cos., Inc., 4.65%, 7/2/18 1,000 888 Bear Stearns Cos., Inc., Series 2003-AC7, Class A2, 5.25%, 1/25/34 756 736 Citibank Credit Card Issuance Trust, 3.10%, 3/10/10 500 482 Comcast Cable, 7.13%, 6/15/13 500 528 Core Invest Grade Trust, 4.66%, 11/30/07 454 449 Countrywide Home Loans, 4.59%, 10/25/33 1,406 1,319 Countrywide Home Loans, 5.03%, 4/20/35 (d) 498 493 Cox Communications, Inc., 7.75%, 11/1/10 1,000 1,068 Cullen/Frost Cap Trust I, 6.37%, 3/1/34 (d) 1,000 1,017 CVS Corp., 7.77%, 1/10/12 (e) 822 884 Developers Diversified Realty, 3.88%, 1/30/09 1,000 957 Emigrant Cap Trust I, 7.47%, 12/10/33 (d) (e) 1,000 994 First Tennessee Cap II, 6.30%, 4/15/34 (e) 1,500 1,389 Goldman Sachs Group, Inc., 5.25%, 10/15/13 1,000 967 HBOS PLC, 5.38%, 11/1/13 (d) (e) 2,000 1,917 Hutchison Whampoa International, Ltd., 6.50%, 2/13/13 (e) 1,000 1,026 HVB Funding Trust I, 8.74%, 6/30/31 (e) 1,000 1,201 CONTINUED 80 STRATEGIC INCOME FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED International Lease Finance Corp., 4.38%, 11/1/09 $ 1,000 $ 959 Kraft Foods, Inc., 6.25%, 6/1/12 1,500 1,532 Lehman Brothers Holdings, 4.70%, 10/22/08 (d) 1,000 1,001 Lehman Brothers TRAINS, 6.50%, 8/15/08 (d)(e) 259 261 Marsh & McLennan Cos., Inc., 5.88%, 8/1/33 500 439 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.53%, 12/25/32 159 158 Motorola, Inc., 6.50%, 11/15/28 (g) 500 506 Pacific Gas & Electric, 4.20%, 3/1/11 1,000 944 Pemex Project Funding Master Trust, 7.88%, 2/1/09 1,000 1,040 Public Service Oklahoma, 4.85%, 9/15/10 500 483 Radian Group, Inc., 5.63%, 2/15/13 500 491 RBS Capital Trust, Class B, 6.80%, 3/31/08 500 499 SLM Corp., 5.11%, 4/1/09 (d) 1,000 962 SLM Corp., 4.88%, 2/1/10 (d) 1,000 959 SLM Corp., 5.54%, 11/21/13 (d) 1,000 971 Sprint Capital Corp, 8.38%, 3/15/12 1,500 1,665 TCI Communications, Inc., 7.88%, 8/1/13 1,100 1,194 Union Pacific Corp., 3.63%, 6/1/10 500 466 Union Planters Corp., 4.38%, 12/1/10 500 478 Washington Mutual, Inc., 4.82%, 10/25/32 81 80 Washington Mutual, Inc., Series 2003-AR10, Class A4, 4.08%, 10/25/33 1,351 1,335 Wells Fargo Mortgage Backed Securities Trust, 4.98%, 11/25/34 1,000 925 Wells Fargo Mortgage Backed Securities, Series 2005-AR10, Class 2A14, 4.11%, 6/25/35 (d) 1,000 967 Weyerhaeuser Co., 7.38%, 3/15/32 1,500 1,553 ----------- TOTAL CORPORATE BONDS 37,745 ----------- FOREIGN BONDS (1.2%) Korea Development Bank, 3.88%, 3/2/09 1,000 960 Russian Federation, 8.25%, 3/31/10 (e) 889 927 ----------- TOTAL FOREIGN BONDS 1,887 ----------- CORPORATE BOND EQUIVALENTS (c) (35.8%) AAG Holding Co., Inc., $1.17 20,000 494 Abbey National PLC, Series B $1.84 24,900 646 Abbey National PLC, Series C $1.84 (g) 60,600 1,554 AMBAC Financial Group, Inc., $1.49 54,100 1,229 CONTINUED SHARES VALUE ----------- ----------- CORPORATE BOND EQUIVALENTS (c), CONTINUED AMBAC Financial Group, Inc., $1.75 52,895 $ 1,328 BAC Capital Trust I, $1.75 64,500 1,622 BAC Capital Trust VI, $1.75 48,600 1,232 BBC Capital Trust II, $2.13 31,000 789 Bear Stearns Capital Trust III, $1.95 58,900 1,477 Citigoup Capital VII, $1.78 124,925 3,171 Cleveland Electric Financial Trust I, $2.25 10,000 258 Consolidated Edison, $1.81 50,700 1,290 Corp-Backed Trust Certs (CBTCS), $1.53 60,000 1,402 Corp-Backed Trust Certs (CBTCS), $1.56 33,500 762 Corp-Backed Trust Certs (CBTCS), $1.80 15,800 394 Corp-Backed Trust Certs (CBTCS), $1.97 2,200 56 Corts Countrywide Capital II, $2.00 10,000 254 Corts-Sherwin Williams, $1.81 17,600 438 Corts-TR Verizon Global, $3.13 54,500 1,381 Developers Diversified Realty, $2.15 (g) 48,300 1,237 Dominion CNG Capital Trust I, $1.95 39,800 997 Duke Realty Corp. $1.67 30,000 720 Duquesne Light Co., $1.68 24,000 608 Entergy Arkansas, Inc., $1.50 80,600 1,969 Entergy Mississippi, Inc., $1.50 29,300 706 Federal Realty Investment Trust, $2.13 43,300 1,089 Financial Security Assurance Holdings, $1.56 (g) 90,750 2,127 Fleet Captial Trust VII, $1.80 29,200 737 General Electric Capital Corp., $1.53 19,000 456 General Electric Capital Corp., $1.66 59,000 1,478 Glenborough Realty, Series A, $1.94 20,661 513 Harris Preferred Capital, Series A, $1.84 31,800 801 HRPT Properties Trust, Series B, $2.19 22,900 592 HSBC Finance Corp. $1.72 32,800 832 HSBC USA, Inc., $1.04 60,000 1,554 Huntington Preferred Cap, Inc., $1.97 15,507 454 ING Group NV, $1.80 41,200 1,058 Kimco Reality Preferred, $1.66 39,994 974 MBNA Corp., $2.03 (g) 37,800 975 Merrill Lynch Preferred Capital, $0.99 80,000 2,050 ML Capital Trust III, $1.75 9,800 250 Morgan Stanley Capital II, $1.81 61,525 1,540 Preferred Plus Trust NAI-1, $2.01 4,400 112 Public Credit & Repack Securities, $1.78 15,600 390 Public Storage, Inc., Series A, $2.45 15,000 405 Public Storage, Inc., Series S, $1.97 10,000 252 CONTINUED 81 STRATEGIC INCOME FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BOND EQUIVALENTS (c), CONTINUED Rouchester Gas & Electric, $1.66 42,800 $ 1,076 Saturns JPM, $1.78 12,000 301 Stilwell Financial, $1.97 36,800 933 Suntrust Capital V, $1.76 46,600 1,174 Torchmark Capital Trust I, $1.94 58,819 1,473 USB Capital V, $1.81 14,100 356 Wachovia Funding, Series A, $1.81 79,000 2,150 Wells Fargo Capital Trust V, $1.75 18,600 471 Wells Fargo Capital Trust VI, $1.74 74,550 1,887 Wells Fargo Capital Trust VII, $1.46 33,500 761 ----------- TOTAL CORPORATE BOND EQUIVALENTS 55,235 ----------- PREFERRED STOCKS (c) (7.0%) Aegon NV, $.77 20,000 506 Barclays Bank PLC, $.07 * 40,000 1,013 Duke Realty Corp., $.72 10,000 247 Equity Residential Properties, $2.15 24,500 627 First Tennessee Bank, $52.28 1,000 1,026 Freddie Mac, $2.50 20,000 816 Freddie Mac, $2.55 (g) 10,000 415 Freddie Mac, $2.85 25,500 1,208 Goldman Sachs Group, Inc., $1.16 (g) 40,000 1,024 Lehman Brothers, $1.92 50,000 1,261 MetLife, Inc., $1.22 40,000 1,033 Source Capital, $2.40 35,600 1,143 U.S. Bancorp, $1.73 20,000 516 ----------- TOTAL PREFERRED STOCKS 10,835 ----------- REAL ESTATE INVESTMENT TRUSTS (i) (6.9%) AMB Property Corp. 6,450 338 Developers Diversified Realty, Corp. 10,700 565 Duke Realty Corp. (g) 15,100 563 Equity Residential Properties Trust (g) 15,600 726 Health Care Property Investors, Inc. (g) 29,250 802 Kimco Realty Corp. 38,500 1,510 ProLogis 13,650 756 Simon Property Group, Inc. 17,054 1,458 Thornburg Mortgage, Inc. (g) 31,100 796 Vornado Realty Trust (g) 15,300 1,599 Weingarten Realty Investors 36,075 1,442 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS 10,555 ----------- U.S. GOVERNMENT AGENCIES (3.0%) FANNIE MAE (1.1%) 5.125%, 1/2/14 $ 1,000 975 4.28%, 7/1/18 742 719 ----------- 1,694 ----------- FEDERAL HOME LOAN MORTGAGE CORPORATION (0.6%) 5.71%, 10/1/32 (d) 845 859 ----------- CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. GOVERNMENT AGENCIES, CONTINUED GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.3%) 5.49%, 8/16/27 $ 1,150 $ 1,139 4.89%, 7/16/34 1,000 942 ----------- 2,081 ----------- TOTAL U.S. GOVERNMENT AGENCIES 4,634 ----------- INVESTMENT COMPANIES (8.7%) 1838 Bond Debenture Trading 127,000 2,167 American Income Fund, Inc. 135,400 1,066 Blackrock Income Trust 108,600 681 Blackrock North American Government Income 225,000 2,233 Eaton Vance Tax-Advantaged Dividend Income Fund 23,600 571 ING Prime Rate Trust 160,400 1,139 MFS Government Markets Income Trust 217,400 1,376 MFS Intermediate Income Trust 49,000 297 Pioneer Interest Shares 90,700 1,000 Templeton Global Income Fund, Inc. 61,374 543 Van Kampen Bond Fund 64,800 1,086 Van Kampen Senior Income Trust 152,000 1,274 ----------- TOTAL INVESTMENT COMPANIES 13,433 ----------- INVESTMENTS IN AFFILIATES (h) (5.4%) Fifth Third Institutional Money Market Fund 8,337,817 8,338 ----------- TOTAL INVESTMENTS IN AFFILIATES 8,338 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (4.3%) Pool of various securities for Fifth Third Funds $ 6,581 6,581 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 6,581 ----------- TOTAL INVESTMENTS (COST $157,464) + - 104.0% 160,265 LIABILITIES IN EXCESS OF OTHER ASSETS - (4.0)% (6,219) ----------- NET ASSETS - 100.0% $ 154,046 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 82 DIVIDEND GROWTH FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (98.5%) 3M Co. 4,775 $ 336 Alberto-Culver Co. 4,275 208 Altria Group, Inc. 5,217 417 American International Group, Inc. 7,437 451 Apache Corp. 2,942 207 AT&T, Inc. 11,275 338 Bank of America Corp. 5,756 297 Becton, Dickinson & Co. 9,440 622 Cardinal Health, Inc. 2,825 189 Chevron Corp. 3,500 230 Citigroup, Inc. 12,360 597 Coca-Cola Co. 10,198 454 DENTSPLY International, Inc. 10,265 321 Ecolab, Inc. 9,775 421 Eli Lilly & Co. 4,058 230 Emerson Electric Corp. 4,710 372 Exxon Mobil Corp. 13,392 908 First Data Corp. 6,705 274 Franklin Resources, Inc. 3,955 362 General Dynamics Corp. 4,005 268 General Electric Corp. 23,153 757 Genzyme Corp. * 4,880 333 Graco, Inc. 1,900 75 IBM Corp. 2,441 189 Illinois Tool Works, Inc. 4,480 205 Johnson & Johnson 12,530 784 Johnson Controls, Inc. 2,775 213 Kellogg Co. (g) 10,870 524 Marriott International, Inc., Class A 12,281 432 Marshall & Ilsley Corp. 10,261 482 McGraw-Hill Cos., Inc. 4,072 229 Medtronic, Inc. 4,570 231 Merrill Lynch & Co., Inc. 5,990 436 Microchip Technology, Inc. 10,630 343 Microsoft Corp. 15,191 365 Nike, Inc., Class B (g) 2,937 232 Noble Corp. 2,897 208 Novartis AG ADR 5,890 332 Nuveen Investments, Inc. 8,080 384 PepsiCo, Inc. 14,036 889 Pfizer, Inc. 6,730 175 Praxair, Inc. 10,165 557 Procter & Gamble Co. 13,950 784 QUALCOMM, Inc. 8,783 310 Sysco Corp. 4,037 111 Target Corp. 5,939 273 Texas Instruments, Inc. 9,760 291 The Hershey Company (g) 3,550 195 United Technologies Corp. 13,457 837 Wachovia Corp. 12,121 650 Walgreen Co. 2,527 118 Weatherford International, Ltd. * 7,908 370 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Wells Fargo & Co. 11,192 $ 810 XTO Energy, Inc. 5,723 269 ----------- TOTAL COMMON STOCKS 20,895 ----------- INVESTMENTS IN AFFILIATES (h) (3.7%) Fifth Third Institutional Money Market Fund 773,749 774 ----------- TOTAL INVESTMENTS IN AFFILIATES 774 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (4.1%) Pool of various securities for Fifth Third Funds $ 862 862 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 862 ----------- TOTAL INVESTMENTS (COST $21,439)+ - 106.3% 22,531 LIABILITIES IN EXCESS OF OTHER ASSETS - (6.3)% (1,329) ----------- NET ASSETS - 100.0% $ 21,202 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 83 TECHNOLOGY FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- COMMON STOCKS (98.2%) Agere Systems, Inc. * 60,000 $ 874 Akamai Technologies, Inc. * (g) 24,250 961 Altera Corp. * 75,000 1,297 American Tower Corp., Class A * 25,000 845 Applera Corp.- Celera Genomics Group * 40,000 540 Autodesk, Inc. * 30,000 1,023 BEA Systems, Inc. * (g) 125,000 1,467 Cadence Design Systems, Inc. * (g) 100,000 1,620 Catalina Marketing Corp. 20,000 581 Cephalon, Inc. * (g) 20,750 1,364 Ceradyne, Inc. * (g) 17,500 856 Cisco Systems, Inc. * 30,000 536 Citrix Systems, Inc. * (g) 15,000 477 Comverse Technology, Inc. * 100,000 1,938 Concur Technologies, Inc. * (g) 30,000 392 Convergys Corp. * 27,500 525 Crown Castle International Corp. * 15,000 528 CSG Systems International, Inc. * 25,000 651 Daktronics, Inc. 30,000 844 Digene Corp. * (g) 15,000 633 Exfo Electro-Optical Engineering, Inc. * 100,000 520 First Data Corp. 5,000 204 FormFactor, Inc. * (g) 15,000 643 Freescale Semiconductor, Inc., Class A * 53,500 1,531 GameStop Corp., Class A * (g) 35,000 1,456 Gartner, Inc. * 25,000 356 General Cable Corp. * 15,000 536 Hittite Microwave Corp. * (g) 15,000 611 Hypercom Corp. * 125,000 1,175 Integrated Device Technologies, Inc. * 66,750 1,033 International Game Technology 39,500 1,527 Intersil Corp., Class A 27,500 647 Kinetic Concepts, Inc. * 25,000 1,114 Lattice Semiconductor Corp. * 30,000 177 Lexmark International, Inc. * (g) 27,500 1,486 Lincoln Electric Holdings, Inc. 12,000 689 Linear Technology Corp. (g) 33,250 1,075 Mentor Graphics Corp. * 40,000 551 Microsemi Corp. * 27,500 696 Microsoft Corp. 54,750 1,316 Microstrategy, Inc., Class A * 7,500 618 NDS Group PLC ADR * 20,000 947 Nuance Communications, Inc. * (g) 100,000 926 NVIDIA Corp. * 50,000 1,106 Parametric Technology Corp. * 55,000 850 Phase Forward, Inc. * 100,000 1,117 Polycom, Inc. * 25,000 555 QLogic Corp. * 55,000 962 QUALCOMM, Inc. 34,000 1,199 ResMed, Inc. * 13,000 603 Seagate Technology 35,000 812 Semtech Corp. * 75,000 968 Sigmatel, Inc. * (g) 150,000 738 SonicWALL, Inc. * 25,000 250 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- COMMON STOCKS, CONTINUED Symbol Technologies, Inc. 137,500 $ 1,520 Technitrol, Inc. 27,500 681 Time Warner Telecom, Inc., Class A * 31,750 532 Triquint Semiconductor * 180,000 850 VeriFone Holdings, Inc. * (g) 30,000 848 Vertex Pharmaceuticals, Inc. * (g) 37,500 1,257 WebEx Communications, Inc. * (g) 30,000 1,028 Western Digital Corp. * 32,500 570 ----------- TOTAL COMMON STOCKS 54,232 ----------- INVESTMENTS IN AFFILIATES (h) (2.9%) Fifth Third Institutional Money Market Fund 1,590,595 1,591 ----------- TOTAL INVESTMENTS IN AFFILIATES 1,591 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (30.1%) Pool of various securities for Fifth Third Funds $ 16,640 16,640 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 16,640 ----------- TOTAL INVESTMENTS (COST $73,253) + - 131.2% 72,463 LIABILITIES IN EXCESS OF OTHER ASSETS - (31.2)% (17,251) ----------- NET ASSETS - 100.0% $ 55,212 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 84 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS (90.3%) AUSTRALIA (3.6%) Alumina, Ltd. 59,739 $ 292 Amcor, Ltd. 46,386 241 AMP, Ltd. 31,657 219 Ansell, Ltd. 1,145 7 Australia & New Zealand Banking Group, Ltd. 14,034 271 Australian Gas & Light Co. 5,010 73 BHP Billiton, Ltd. 184,704 3,929 BlueScope Steel, Ltd. 37,741 198 Boral, Ltd. 30,732 177 Brambles Industries, Ltd. (g) 25,713 214 Caltex Australia, Ltd. 20,530 384 Coca-Cola Amatil, Ltd. 18,944 99 Coles Myer, Ltd. 10,427 91 Commonwealth Bank of Australia 29,387 1,009 CSL, Ltd. 3,164 128 CSR, Ltd. 49,853 129 Foster's Group, Ltd. 46,300 191 Insurance Australia Group 43,892 175 James Hardie Industries NV 24,574 132 John Fairfax Holdings, Ltd. 8,521 26 Leighton Holdings, Ltd. 2,707 40 Lend Lease Corp., Ltd. 4,578 50 Macquarie Bank, Ltd. 5,426 257 Macquarie Infrastructure Group 83,850 175 Mayne Pharma, Ltd. * 9,701 20 National Australia Bank, Ltd. 39,390 1,083 Newcrest Mining, Ltd. 17,110 251 Onesteel, Ltd. (g) 29,255 87 Orica, Ltd. 14,750 265 Origin Energy, Ltd. 147,089 851 Paperlinx, Ltd. 23,747 63 QBE Insurance Group, Ltd. 17,030 288 Rinker Group, Ltd. 49,029 495 Rio Tinto, Ltd. (g) 16,022 913 Santos, Ltd. 108,016 952 Sonic Healthcare, Ltd. 1,643 16 Stockland Trust Group 469 2 Suncorp Metway, Ltd. 5,353 79 Sydney Roads Group * 27,950 22 SYMBION Health, Ltd. 9,701 23 TABCORP Holdings, Ltd. (g) 10,500 123 Telstra Corp., Ltd. (g) 51,965 152 Toll Holdings Ltd. 4,810 53 Transurban Group (g) 6,346 34 Westfarmers, Ltd. 8,854 240 Westpac 21,491 362 Woodside Petroleum, Ltd. 59,092 1,937 Woolworths, Ltd. 27,586 402 ----------- 17,220 ----------- AUSTRIA (0.8%) Andritz AG 476 83 Bank Austria Creditanstalt 2,492 320 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED AUSTRIA, CONTINUED Boehler-Uddeholm AG 2,480 $ 130 Erste Bank Der Oesterreichischen Sparkassen AG 12,549 724 Flughafen Wein AG 714 55 Immofinanz Immobilien Anlagen * 23,087 265 Mayr-Melnhof Karton AG 291 49 Oesterreichische Elektrizitaetswirtschafts AG 5,200 252 OMV AG 11,087 680 Raiffeisen Intl Bank Holding AG 1,849 159 Telekom Austria AG 22,713 513 Voest-Alpine Stahl AG (g) 1,257 186 Wiener Staedtische Allgemine Versicherung AG 1,518 88 Wienerberger Baust 3,975 188 ----------- 3,692 ----------- BELGIUM (0.8%) Agfa Gevaert NV 1,931 45 Bekaert NV 325 30 Belgacom SA 3,263 110 Delhaize Group 1,553 113 Dexia 25,883 634 Fortis 36,918 1,312 Groupe Bruxelles Lambert SA 1,616 170 InBev NV 3,790 199 KBC Bancassurance Holding SA 3,615 394 Solvay SA 2,472 293 UCB SA 4,219 246 Umicore 1,052 133 ----------- 3,679 ----------- BERMUDA (0.1%) Cheung Kong Infrastructure Holdings, Ltd. 13,000 40 Esprit Holdings, Ltd. 33,000 250 Johnson Electric Holdings, Ltd. 46,500 33 Kerry Properties, Ltd. 12,652 42 Li & Fung, Ltd. 57,200 120 Shagri-La Asia, Ltd. 31,021 64 Yue Yuen Industrial Holdings, Ltd. 13,500 38 ----------- 587 ----------- BRAZIL (0.7%) Aracruz Celulose SA, B Shares 21,000 105 Arcelor Brasil SA 3,690 59 Banco Itau Holding Financeira SA 21,000 645 Centrais Eletricas Brasileiras SA, B Shares 5,176,000 104 Companhia de Bebidas das Americas 154,000 55 Companhia Siderurgica Nacional SA 4,000 129 Companhia Vale do Rio Doce, A Shares 58,536 1,170 Empresa Brasileira de Aeronautica S.A (Embraer) 16,500 142 Souza Cruz SA 3,900 63 CONTINUED 85 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED BRAZIL, CONTINUED Tele Norte Leste Participacoes SA 13,000 $ 172 Telesp Celular Participacoes SA * 21,249 53 Unibanco - Uniao de Bancos Brasileiros SA GDR 3,600 250 Usinas Siderurgicas de Minas Gerais SA, A Shares 4,200 145 ----------- 3,092 ----------- DENMARK (0.5%) A P Moller - Maersk AS 10 76 Danisco AS (g) 900 66 Danske Bank 21,687 832 DSV AS 1,400 225 GN Store Nord AS (g) 12,700 180 Novo Nordisk AS 8,730 538 Novozymes AS 1,950 130 Vestas Wind Systems AS * 5,550 150 William Demant Holdings AS * 1,000 75 ----------- 2,272 ----------- FINLAND (1.4%) Cargotec Corp., B Shares 1,677 69 Fortum Oyj 7,489 203 Kesko Oyj, B Shares 4,103 170 Kone Oyj, B Shares 3,354 150 Metso Oyj, B Shares 4,716 170 Neste Oil Oyj 2,291 79 Nokia Oyj 213,031 4,226 Outokumpo Oyj 9,396 228 Rautaruukki Oyj 3,708 105 Sampo Insurance Co. 13,856 261 Stora Enso Oyj 24,479 362 TietoEnator Oyj 5,565 133 UPM-Kym'mene Oyj 21,307 473 Uponor Oyj 1,282 35 Wartsila Corp. Oyj, B Shares 2,611 101 ----------- 6,765 ----------- FRANCE (8.1%) Accor SA 12,681 748 Alcatel 58,712 662 Alstom * 3,934 341 Arcelor (g) 19,418 1,035 Arkema * 2,028 79 Atos Origin SA * 1,078 50 AXA SA 86,515 2,983 BNP Paribas SA 40,417 3,934 Bouygues 10,422 520 Business Objects SA * 2,957 71 Cap Gemini 4,365 234 Carrefour SA 24,625 1,535 Casino Guichard-Perrachon 2,238 184 CNP Assurances 2,917 278 Compagnie de Saint-Gobain 10,839 774 Compagnie Generale des Etablissements Michelin 3,038 185 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED FRANCE, CONTINUED Credit Agricole SA 16,973 $ 682 Dassault Systems SA 2,314 120 Essilor International SA 2,213 221 Euronext NV 2,317 208 European Aeronautic Defence and Space Co. 8,411 242 France Telecom SA 54,437 1,140 Gecina SA 1,903 246 Groupe Danone 10,041 1,327 Hermes International 1,062 88 Imerys SA 1,299 94 Klepierre 1,607 204 L'Air Liquide SA 4,730 955 L'Oreal SA 8,747 876 Lafarge SA 6,910 836 Lagardere Group SCA 3,721 261 LVMH Moet-Hennessy Louis Vuitton 6,483 651 Neopost SA 1,658 181 Peugeot SA 3,461 182 PPR SA 1,689 226 Publicis Groupe (g) 2,839 106 Renault SA 3,561 389 Safran SA 3,684 72 Sanofi-Aventis 34,761 3,305 Schneider Electric SA 7,778 800 Societe BIC SA 1,476 89 Societe Generale-A 15,897 2,371 Societe Television Francaise 1 3,496 111 Sodexho SA 5,019 255 STMicroelectronics NV 8,706 130 Suez SA 16,628 689 Technip-Coflexip SA 1,654 89 Thales SA 3,488 139 Thomson 6,464 109 Total SA 81,156 5,519 Unibail Union Credit 2,597 482 Veolia Environnement 3,368 183 Vinci SA 4,968 505 Vivendi Universal 23,213 786 Zodiac SA 1,683 96 ----------- 38,578 ----------- GERMANY (8.5%) Adidas-Salomon AG 11,528 538 Allianz AG 21,413 3,363 Altana AG 3,946 227 BASF AG 29,433 2,372 Bayer AG 36,013 1,773 Beiersdorf AG 2,853 150 Celesio AG 4,370 205 Commerzbank AG 32,417 1,140 Continental AG 7,178 736 DaimlerChrysler AG 44,315 2,292 Deutsche Bank AG 27,128 3,140 CONTINUED 86 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED GERMANY, CONTINUED Deutsche Boerse AG 5,605 $ 794 Deutsche Lufthansa AG 12,571 235 Deutsche Post AG 39,484 977 Deutsche Postbank AG 2,905 212 Deutsche Telekom AG 157,542 2,439 E.ON AG 34,023 4,107 Fresenius Medical Care AG 3,516 424 Heidelberger Druckmaschinen AG 2,900 120 Henkel KGaA 3,349 398 Hochtief AG 3,045 158 Hypo Real Estate Holding AG 7,464 415 Infineon Technologies AG * 35,239 377 Karstadt AG * (g) 4,366 103 Linde AG 4,310 364 MAN AG 8,720 631 Merck KGAA 2,696 246 Metro AG 7,872 449 Muenchener Rueckver AG 10,806 1,489 Porsche AG 387 380 Puma AG Rudolf Dassler Sport 680 247 RWE AG 2,000 159 RWE AG 22,764 1,996 SAP AG 12,216 2,233 Siemens AG 44,261 3,573 Suedzucker AG (g) 4,457 108 Thyssen Krupp AG 20,056 700 TUI AG (g) 12,610 257 Volkswagen AG (g) 8,534 641 ----------- 40,168 ----------- GREAT BRITAIN (19.9%) 3I Group PLC 2,424 42 Aegis Group PLC 34,975 79 AMEC PLC 12,375 64 Amvescap PLC 3,733 36 Anglo American PLC 53,387 2,229 ARM Holdings PLC 44,473 97 Arriva PLC 10,995 113 Associated British Ports Holdings PLC 19,494 330 AstraZeneca PLC 73,208 4,469 Aviva PLC 114,821 1,540 BAE Systems PLC 130,854 873 Balfour Beatty 21,507 144 Barclays PLC 221,223 2,595 Barratt Developments PLC 6,653 120 BBA Group PLC 30,027 141 Bellway PLC 3,499 77 Berkeley Group Holdings PLC * 3,666 84 BG Group PLC 133,581 1,796 BHP Billiton PLC 93,576 1,772 BOC Group PLC 19,198 575 Boots Group PLC 18,784 276 BP PLC 780,078 9,397 Brambles Industries PLC 3,701 30 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED GREAT BRITAIN, CONTINUED British Airways PLC * 25,641 $ 185 British American Tobacco PLC 49,480 1,334 British Land Co. PLC 14,566 372 British Sky Broadcasting Group PLC 28,331 297 BT Group PLC 305,111 1,355 Bunzl PLC 16,193 189 Burberry Group PLC 7,387 66 Cadbury Schweppes PLC 83,589 817 Capita Group PLC 3,380 33 Carnival PLC 9,335 372 Centrica PLC 82,105 449 Close Brothers Group PLC 665 11 Cobham PLC 48,564 151 Compass Group PLC 112,548 537 Corus Group PLC 34,053 273 Daily Mail & General Trust 8,477 90 Diageo PLC 154,707 2,719 Dixons Group PLC 51,800 193 Electrocomponents PLC 20,828 92 EMAP PLC 7,086 92 EMI Group PLC 22,340 107 Enterprise Inns PLC 18,788 341 FirstGroup PLC 25,542 214 FKI PLC 19,992 37 Friends Provident PLC 87,895 299 George Wimpey PLC 10,884 98 GKN PLC 19,649 95 Glaxosmithkline PLC 249,681 6,906 Group 4 Securicor PLC 5,825 18 GUS PLC 20,830 392 Hammerson PLC 8,008 187 Hanson PLC 27,658 340 Hays PLC 8,139 20 HBOS PLC 126,833 2,309 HSBC Holdings PLC 363,484 6,591 ICAP PLC 2,480 22 IMI PLC 20,114 190 Imperial Chemical Industries PLC 45,589 316 Imperial Tobacco Group PLC 20,578 673 InterContinental Hotels Group PLC 22,077 357 International Power PLC 9,592 53 Invensys PLC * 251,292 87 ITV PLC 97,501 177 J Sainsbury PLC 44,940 295 Johnson Matthey PLC 8,435 204 Kelda Group PLC 13,820 215 Kesa Electricals PLC 8,163 47 Kingfisher PLC 31,317 143 Ladbrokes PLC 30,621 221 Land Securities Group PLC 13,012 480 Legal & General Group PLC 291,166 676 Liberty International PLC 7,004 150 Lloyds TSB Group PLC 176,828 1,780 CONTINUED 87 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED GREAT BRITAIN, CONTINUED Logica PLC 37,077 $ 118 London Stock Exchange Group PLC 1,096 23 Man Group PLC 1,505 69 Marks & Spencer PLC 42,231 471 Meggitt PLC 21,954 122 Misys PLC 23,956 109 Mitchells & Butlers PLC 27,489 272 National Express Group PLC 8,899 136 National Grid PLC 98,436 1,121 Next PLC 6,598 210 Pearson PLC 20,364 277 Persimmon PLC 7,497 179 Provident Financial PLC 1,305 14 Prudential Corp. PLC 82,550 867 Punch Taverns PLC 13,133 216 Reckitt Benckiser PLC 23,680 950 Reed Elsevier PLC 32,223 321 Rentokil Initial PLC 9,250 28 Resolution PLC 1,014 11 Reuters Holding PLC 37,796 277 Rexam PLC 21,397 202 Rio Tinto PLC 40,541 2,094 Rolls-Royce Group PLC 61,986 510 Royal & Sun Alliance Insurance Group PLC 119,897 300 Royal Bank of Scotland Group PLC 95,869 3,119 Royal Dutch Shell PLC 148,733 5,247 Royal Dutch Shell PLC, B Shares 103,914 3,826 Sage Group PLC 57,209 248 Schroders PLC 635 11 Scottish & Southern Energy PLC 30,125 681 Scottish Power PLC 50,980 576 Serco Group PLC 2,367 15 Severn Trent PLC 14,055 341 Signet Group PLC 41,542 78 Slough Estates PLC 11,434 142 Smith & Nephew PLC 17,131 148 Smiths Industries PLC 21,670 365 Stagecoach Group PLC 47,328 99 Tate & Lyle PLC 28,676 367 Taylor Woodrow PLC 16,288 105 Tesco PLC 258,299 1,734 Tompkins PLC 38,925 205 Unilever PLC 61,963 1,465 United Business Media PLC 7,678 91 United Utilities PLC 5,154 64 Vodafone Group PLC 1,955,335 4,246 Vodafone Group PLC, B Shares (j) 2,234,668 626 Whitbread PLC 11,647 270 William Hill PLC 21,682 239 Wolseley PLC 23,361 497 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED GREAT BRITAIN, CONTINUED WPP Group PLC 24,954 $ 295 Yell Group PLC 17,214 164 ----------- 94,707 ----------- GREECE (0.3%) Alpha Bank A.E 14,112 362 EFG Eurobank Ergasias 7,234 204 National Bank of Greece SA 12,654 492 OPAP SA 7,500 272 Titan Cement Co. 2,300 112 ----------- 1,442 ----------- HONG KONG (1.0%) ASM Pacific Technology, Ltd. 1,500 8 Bank of East Asia, Ltd. 45,249 187 BOC Hong Kong Holdings, Ltd. 111,000 226 Cathay Pacific Airways, Ltd. 30,000 54 Cheung Kong Infrastructure Holdings, Ltd. 46,000 498 CLP Holdings, Ltd. 56,180 333 Hang Lung Properties, Ltd. 56,000 111 Hang Seng Bank, Ltd. 23,500 300 Henderson Land Development, Ltd. 23,000 126 Hong Kong & China Gas Co., Ltd. 121,348 275 Hong Kong Electric Holdings, Ltd. 43,000 205 Hong Kong Exchanges & Clearing, Ltd. 31,000 201 Hopewell Holdings, Ltd. 19,000 54 Hutchison Telecommunications International, Ltd. * 40,000 69 Hutchison Whampoa, Ltd. 64,000 585 Hysan Development Co., Ltd. 18,908 53 MTR Corp. 42,650 109 New World Development Co., Ltd. 70,649 121 PCCW, Ltd. 109,047 69 Sino Land Company, Ltd. 24,401 41 Sun Hung Kai Properties, Ltd. 40,136 422 Swire Pacific, Ltd. 29,000 301 Techtronic Industries Co., Ltd. 28,500 38 Television Broadcasts, Ltd. 9,000 55 The Link REIT * 50,000 105 Wharf Holdings, Ltd. 36,600 136 ----------- 4,682 ----------- INDONESIA (0.0%) PT Mulia Industrindo Tbk * 19,000 -- # ----------- IRELAND (0.1%) Depfa Bank PLC 17,593 298 ----------- JAPAN (27.5%) Acom Co., Ltd. 1,120 51 Advantest 5,200 504 AEON Co., Ltd. 27,000 630 AEON Credit Service Co., Ltd. 900 19 Aiful Corp. 1,050 41 Ajinomoto Co., Inc. 31,400 353 CONTINUED 88 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Alps Electric Co., Ltd. 9,000 $ 111 Amada Co., Ltd. 16,000 170 Asahi Breweries, Ltd. 20,900 305 Asahi Glass Co., Ltd. 62,800 805 Asahi Kasei Corp. 62,000 386 Asatsu, Ltd. 1,200 39 Astellas Pharma, Inc. 31,100 1,237 Bank of Kyoto, Ltd. 15,000 155 Bank of Yokohama, Ltd. 75,000 601 Benesse Corp. 2,700 96 Bridgestone Corp. 47,000 855 Canon, Inc. 58,200 2,798 Casio Computer Co., Ltd. (g) 17,000 336 Central Japan Railway Co. 69 764 Chiba Bank, Ltd. 48,000 470 Chiyoda Corp. (g) 10,000 192 Chubu Electric Power Co., Inc. 24,300 589 Chugai Pharmaceutical Co., Ltd. 16,004 330 Citizen Watch Co., Ltd. (g) 19,300 165 COMSYS Holdings Corp. 9,000 104 Credit Saison Co., Ltd. 2,600 113 CSK Corp. 4,100 168 Dai Nippon Printing Co., Ltd. 22,600 356 Daicel Chemical Industries, Ltd. 9,000 66 Daiichi Sanko Co., Ltd. 41,400 1,138 Daikin Kogyo Corp. 9,100 294 Dainippon Ink & Chemicals, Inc. 32,000 111 Daito Trust Construction Co., Ltd. 7,500 408 Daiwa House Co., Ltd. 38,600 629 Daiwa Securities Group, Ltd. 171,000 1,911 Denki Kagaku Kogyo Kabushiki Kaisha, Ltd. 20,000 81 Denso Corp. 34,350 1,178 Dentsu, Inc. 24 71 Dowa Mining Co., Ltd. (g) 28,000 252 E*TRADE Securities Co., Ltd. 107 143 East Japan Railway Co. 198 1,473 Ebara Corp. 16,800 70 Eisai Co., Ltd. 16,702 771 FamilyMart Co., Ltd. 2,900 88 Fanuc Co., Ltd. 9,600 801 Fast Retailing Co., Ltd. 3,800 309 Fuji Electric Holdings Co., Ltd. 11,000 54 Fuji Photo Film Co., Ltd. 22,600 761 Fuji Soft ABC, Inc. 2,200 73 Fuji Television Network 29 60 Fujikura 14,000 175 Fujitsu, Ltd. 85,000 659 Furukawa Electric Co., Ltd. (g) 30,800 199 Hankyu Department Stores, Inc. (g) 4,000 31 Hirose Electric Co., Ltd. 2,800 361 Hitachi Chemical Co., Ltd. 1,000 24 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Hitachi Construction Machinery Co., Ltd. 1,200 $ 28 Hitachi, Ltd. 166,000 1,063 Hokkaido Electric Power Co., Inc. 6,900 167 Hokuhoku Financial Group, Inc. 79,000 298 Honda Motor Co., Ltd. 96,102 3,170 Hoya Corp. 24,700 864 IBIDEN Co., Ltd. 5,500 266 Index Corp. (g) 53 42 INPEX Holdings, Inc. * 21 198 Isetan Co., Ltd. 10,500 165 Ishikawajima-Harima Heavy Industries Co., Ltd. 56,000 158 Itochu Corp. 71,000 640 Itochu Techno-Science Corp. (g) 1,700 76 Japan Airlines System Corp. * (g) 43,000 79 Japan Real Estate Investment Corp. 24 209 Japan Retail Fund Investment Corp. 21 162 Japan Tobacco, Inc. 175 670 JFE Holdings, Inc. 18,300 731 JGC Corp. 14,000 232 Joyo Bank, Ltd. 54,000 330 JS Group Corp. 12,800 263 JSR Corp. 8,200 193 Kajima Corp. 67,400 283 Kaneka Corp. 12,000 107 Kansai Electric Power Co., Inc. 33,800 778 Kao Corp. 28,000 728 Kawasaki Heavy Industries, Ltd. 57,000 173 Kawasaki Kisen Kaisha, Ltd. (g) 4,000 23 Keihin Electric Express Railway Co., Ltd. (g) 13,000 92 Keio Electric Railway Co., Ltd. 9,000 56 Keyence Corp. 3,000 685 Kikkoman Corp. 6,000 77 Kinki Nippon Railway Co., Ltd. (g) 79,230 249 Kirin Brewery Co., Ltd. 43,400 644 Kobe Steel, Ltd. 90,000 272 Kokuyo Co., Ltd. (g) 2,900 48 Komatsu, Ltd. 55,400 1,114 Komori Corp. 1,000 22 Konami Co., Ltd. 5,700 139 Konica Corp. 27,500 350 Kubota Corp. 76,000 699 Kuraray Co., Ltd. 19,500 215 Kurita Water Industries, Ltd. 3,500 65 Kyocera Corp. 8,300 680 Kyowa Hakko Kogyo Co., Ltd. 15,000 109 Kyushu Electric Power Co., Inc. 15,200 355 Lawson, Inc. 2,600 89 Leopalace 21 Corp. 9,900 346 Mabuchi Motor Co., Ltd. (g) 1,800 121 Marubeni Corp. 69,800 371 CONTINUED 89 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Marui Co., Ltd. 26,900 $ 383 Matsui Securities Co., Ltd. 100 1 Matsushita Electric Industrial Co., Ltd. 98,000 2,039 Matsushita Electric Works 16,000 178 Meiji Seika Co., Ltd. 7,000 35 Meitec Corp. 1,300 42 Millea Holdings, Inc. 73 1,414 Minebea Co., Ltd. 19,000 97 Mitsubishi Chemical Holdigs Corp. 43,500 274 Mitsubishi Corp. 62,300 1,277 Mitsubishi Electric Corp. 107,800 846 Mitsubishi Estate Co., Ltd. 101,000 2,093 Mitsubishi Heavy Industries, Ltd. 182,000 745 Mitsubishi Logistics Corp. 3,000 44 Mitsubishi Materials Corp. 91,000 361 Mitsubishi Rayon Co., Ltd. 27,000 205 Mitsubishi Tokyo Financial Group, Inc. 372 5,258 Mitsubishi UFJ Securities Co., Ltd. 24,000 270 Mitsui & Co., Ltd. 76,800 1,170 Mitsui Chemicals, Inc. 24,000 151 Mitsui Fudosan Co., Ltd. 71,400 1,517 Mitsui Mining & Smelting Co., Ltd. 56,000 319 Mitsui O.S.K. Lines, Ltd. (g) 10,000 66 Mitsui Sumitomo Insurance Co. 60,230 709 Mitsui Trust Holding, Inc. 36,513 401 Mitsukoshi, Ltd. 28,000 130 Mizuho Financial Group, Inc. 439 3,689 Murata Manufacturing Co., Ltd. 11,200 741 NEC Corp. 110,200 609 NEC Electronics Corp. * (g) 2,600 79 Net One Systems Co., Ltd. (g) 33 51 New Oji Paper Co. 52,400 304 NGK Insulators, Ltd. 20,600 264 NGK Spark Plug Co., Ltd. 12,000 251 Nidec Corp. 5,300 376 Nikko Cordial Corp. 72,000 859 Nikon Corp. (g) 15,000 266 Nintendo Co., Ltd. 6,200 1,158 Nippon Building Fund, Inc. (g) 28 276 Nippon Electric Glass Co., Ltd. 10,000 223 Nippon Express Co., Ltd. 40,600 206 Nippon Meat Packers, Inc. 9,600 113 Nippon Mining Holdings, Inc. 25,500 216 Nippon Oil Co., Ltd. 76,600 600 Nippon Paper Group, Inc. 44 175 Nippon Sheet Glass Co., Ltd. (g) 21,000 101 Nippon Steel Corp. 230,800 898 Nippon Telegraph and Telephone Corp. 145 758 Nippon Yusen Kabushiki Kaisha 60,000 386 Nishi-Nippon City Bank, Ltd. 42,000 186 Nissan Chemical Industries, Ltd. 7,000 88 Nissan Motors Co., Ltd. 143,400 1,546 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Nisshin Seifun Group, Inc. 6,000 $ 68 Nisshin Steel Co., Ltd. 9,000 27 Nisshinbo Industries, Inc. 3,000 32 Nissin Food Products Co., Ltd. 4,100 150 Nitto Denko Corp. 9,900 719 Nomura Holdings, Inc. 168,900 2,998 Nomura Research Institute, Ltd. 1,400 188 NSK, Ltd. 37,000 284 NTN Corp. 27,000 204 NTT Data Corp. 79 359 NTT DoCoMo, Inc. 190 277 Obayashi Corp. 44,000 284 OBIC Co., Inc. 400 85 Oki Electric Industry Co., Ltd. (g) 33,000 69 Okumura Corp. 12,000 62 Olympus Optical Co., Ltd. 8,000 230 Omron Corp. 11,000 277 Onward Kashiyama Co., Ltd. 4,000 53 Oracle Corp. Japan 2,000 88 Oriental Land Co., Ltd. 2,700 148 Osaka Gas Co., Ltd. 91,200 308 Pioneer Electronic Corp. (g) 8,601 141 Promise Co., Ltd. 1,450 65 Resona Holdings, Inc. 223 698 Ricoh Co., Ltd. 32,000 645 Rohm Co., Ltd. 7,400 629 Sampo Japan Insurance, Inc. 41,000 554 Sanken Electric Co., Ltd. 7,000 90 Sanyo Electric Co., Ltd. * (g) 81,000 163 Secom Co., Ltd. 9,100 444 Seiko Epson Corp. (g) 5,500 154 Sekisui Chemical Co., Ltd. 20,000 173 Sekisui House, Ltd. (g) 48,600 689 Seven & I Holdings Co., Ltd. 36,180 1,262 Sharp Corp. 41,200 696 Shimachu Co., Ltd. 2,500 66 Shimamura Co., Ltd. 1,300 133 Shimano, Inc. 4,600 138 Shimizu Construction Corp. (g) 47,600 254 Shin-Etsu Chemical Co. 18,948 1,098 Shinko Securities Co., Ltd. 22,000 79 Shinsei Bank, Ltd. 68,000 424 Shionogi & Co., Ltd. 19,000 361 Shisiedo Co., Ltd. 17,800 356 Shizuoka Bank, Ltd. (g) 40,000 455 Showa Denko KK 32,000 131 Showa Shell Sekiyu KK 10,000 125 Skylark Co., Ltd. (g) 7,000 151 SMC Corp. 3,400 435 Softbank Corp. (g) 46,200 848 Sony Corp. 35,398 1,630 Stanley Electric Co., Ltd. 5,600 119 Sumitomo Bakelite Co. 6,000 53 CONTINUED 90 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED Sumitomo Chemical Co., Ltd. 65,600 $ 518 Sumitomo Corp. 46,200 655 Sumitomo Electric Industries 34,400 451 Sumitomo Heavy Industries, Ltd. 23,000 200 Sumitomo Metal Industry, Ltd. 136,000 543 Sumitomo Metal Mining Co., Ltd. 52,600 742 Sumitomo Mitsui Financial Group, Inc. 273 2,906 Sumitomo Osaka Cement Co., Ltd. 12,000 36 Sumitomo Realty & Development Co., Ltd. 44,000 1,094 Sumitomo Trust & Banking 76,000 807 T&D Holdings, Inc. 11,450 910 Taiheiyo Cement Corp. 29,000 109 Taisei Construction 63,000 211 Taisho Pharmaceutical Co. 11,913 234 Taiyo Yuden Co., Ltd. 5,000 66 Taka Shi Maya Co., Ltd. (g) 18,000 217 Takara Holdings, Inc. (g) 7,000 39 Takeda Pharmaceutical Co., Ltd. 53,600 3,461 Takefuji Corp. 1,780 87 TDK Corp. 6,100 477 Teijin, Ltd. 42,400 239 Terumo Corp. 9,500 343 The 77 Bank, Ltd. 14,000 102 The Bank of Fukuoka, Ltd. (g) 31,000 231 The Daimaru, Inc. 17,000 203 THK Co., Ltd. 2,300 61 TIS, Inc. 1,851 40 Tobu Railway Co., Ltd. 32,600 158 Toho Co. 2,200 46 Tohoku Electric Power Co., Ltd. 18,900 397 Tokyo Broadcasting System, Inc. 6,600 139 Tokyo Electric Power Co., Inc. 51,700 1,389 Tokyo Electronics, Ltd. 11,200 712 Tokyo Gas Co., Ltd. 109,600 545 Tokyo Tatemono Co., Ltd. 16,000 162 Tokyu Corp. 47,400 294 Tonengeneral Sekiyu K.K. (g) 17,000 170 Toppan Printing Co., Ltd. 23,600 272 Toray Co. 61,100 513 Toshiba Corp. (g) 166,000 1,073 Tosoh Corp. 27,000 95 Toto, Ltd. (g) 25,600 244 Toyo Seikan Kaisha, Ltd. 9,000 178 Toyota Industries Corp. 5,300 215 Toyota Motor Corp. 154,700 8,179 Trend Micro, Inc. 6,200 203 Uni-Charm Corp. 2,000 111 Uniden Corp. 4,000 42 UNY Co., Ltd. 6,000 86 Ushio, Inc. 3,000 64 USS Co., Ltd. 2,940 195 Wacoal Corp. 3,000 39 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED JAPAN, CONTINUED West Japan Railway Co. 22 $ 92 Yahoo Japan Corp. 948 401 Yakult Honsha Co., Ltd. (g) 5,000 130 Yamada Denki Co., Ltd. 6,100 593 Yamaha Corp. 6,300 122 Yamaha Motor Co., Ltd. 1,000 26 Yamato Transport Co., Ltd. 17,000 251 Yamazaki Baking Co., Ltd. (g) 5,000 45 Yokogawa Electric Corp. 12,000 160 ----------- 130,764 ----------- JERSEY (0.0%) Meinl European Land, Ltd. * 7,576 159 ----------- MEXICO (0.9%) Alfa, SA 13,000 66 America Movil SA de CV 746,000 1,333 Cemex SA de CV 244,000 689 Coca-Cola Femsa SA de CV 6,000 18 Corporacion GEO SA de CV * 15,000 59 Fomento Economico Mexicano SA de CV 26,000 228 Grupo Carso SA de CV 30,000 80 Grupo Financiero Banorte SA de CV 51,000 140 Grupo Mexico SA de CV 45,000 145 Grupo Modelo SA de CV 21,000 92 Grupo Televisa SA 88,000 326 Kimberly Clark de Mexico SA de CV 21,000 79 Telefonos de Mexico SA de CV 503,000 592 Urbi, Desarrollos Urbanos, SA de CV * 12,000 31 Wal-Mart de Mexico SA de CV 154,000 475 ----------- 4,353 ----------- NETHERLANDS (3.0%) ABN AMRO Holding NV (g) 83,651 2,315 Aegon NV 85,974 1,459 Akzo NV 10,755 598 ASML Holding NV * 20,394 402 Corio NV 3,575 239 Heineken NV 9,339 439 ING Groep NV 78,752 3,196 Koninklijke DSM NV 5,893 230 Koninklijke KNP NV 65,300 741 Oce NV 4,385 71 Philips Electronics NV 36,887 1,218 QIAGEN NV * 8,202 125 Reed Elsevier NV (g) 17,002 253 Rodamco Cont Eurpope NV 2,933 311 TNT Post Groep NV 17,981 643 Unilever NV 70,046 1,665 Vedior NV 5,687 107 Wereldhave NV 1,458 155 Wolters Kluwer NV CVA 9,213 217 ----------- 14,384 ----------- CONTINUED 91 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED NEW ZEALAND (0.0%) Auckland International Airport, Ltd. 7,148 $ 9 Contact Energy, Ltd. 2,639 12 Fisher & Paykel Appliances Holdings, Ltd. 1,810 5 Fisher & Paykel Industries, Ltd. 2,095 6 Fletcher Building, Ltd. 2,432 13 Sky City Entertainment Group, Ltd. 2,511 8 Telecom Corp. of New Zealand, Ltd. (g) 12,253 30 The Warehouse Group, Ltd. 1,226 4 ----------- 87 ----------- NORWAY (0.5%) DnB Holding ASA 13,396 170 Norsk Hydro ASA 24,210 688 Norske Skogindustrier AG 7,100 109 Orkla SA 8,000 363 Schibsted ASA (g) 1,250 34 Statoil ASA 22,650 672 Storebrand ASA 1,300 14 Tandberg ASA 5,800 54 Tandberg Television ASA * 3,000 42 Telenor ASA 23,000 294 Tomra Systems ASA 2,135 15 Yara International ASA 8,742 132 ----------- 2,587 ----------- PORTUGAL (0.2%) Banco Commercial 88,339 254 BPI-SGPS SA 2,389 18 Brisa Auto-Estradas (g) 20,326 207 Energias de Portugal SA 12,673 50 Portugal Telecom SA 24,085 298 PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS, SA 1,374 16 Sonae, SGPS SA 25,407 40 ----------- 883 ----------- RUSSIA (1.3%) AO VimpelCom ADR * 4,200 202 GMK Norilsk Nickel ADR 3,400 464 Lukoil ADR 22,100 1,918 Mobile TeleSystems, ADR 8,000 256 Oao Gazprom ADR 46,950 1,986 Polyus Gold ADR * 4,700 209 RAO Unified Energy Systems, GDR 3,727 273 Surgutneftegaz ADR (g) 6,600 485 Tatneft ADR 3,000 309 ----------- 6,102 ----------- CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED SINGAPORE (1.0%) Ascendas Real Estate Investment Trust 50,000 $ 61 Capitaland, Ltd. 61,000 158 CapitaMall Trust 44,300 62 Chartered Semiconductor Manufacturing, Ltd. * (g) 71,000 49 City Developments, Ltd. 26,370 150 ComfortDelGro Corp., Ltd. 95,333 94 Cosco Corp., Ltd. 41,000 40 Creative Technology, Ltd. 6,254 34 DBS Group Holdings, Ltd. 53,945 618 Fraser and Neave, Ltd. 100,000 256 Jardine Cycle & Carriage, Ltd. 13,031 88 K-REIT Asia 6,400 6 Keppel Corp., Ltd. 27,000 262 Keppel Land, Ltd. (g) 18,000 45 Neptune Orient Lines, Ltd. 55,000 63 Oversea-Chinese Banking Corp., Ltd. 121,490 489 Parkway Holdings, Ltd. 31,000 50 SembCorp Industries, Ltd. 41,784 90 SembCorp. Marine, Ltd. 28,000 59 Singapore Airlines, Ltd. 28,000 231 Singapore Exchange, Ltd. 38,911 91 Singapore Land, Ltd. 17,000 68 Singapore Post, Ltd. 76,000 52 Singapore Press Holdings, Ltd. 76,743 190 Singapore Technology Engineering, Ltd. 67,760 121 Singapore Telecommunications, Ltd. 372,503 610 STATS ChipPAC, Ltd. * 68,000 39 United Overseas Bank, Ltd. 56,720 561 United Overseas Land, Ltd. 31,376 57 Venture Corp., Ltd. 13,445 91 ----------- 4,785 ----------- SPAIN (2.0%) Abertis Infraestructuras (g) 7,916 187 Acciona SA 802 122 Acerinox SA (g) 6,445 121 Actividades de Construccion y Servicios SA 5,946 260 Altadis SA 10,809 511 Antena 3 Television SA (g) 1,288 28 Banco Bilbao Vizcaya-Argentari 78,816 1,675 Banco Popular Espanol SA 22,101 332 Banco Santander Central Hispano SA (g) 110,347 1,671 Cintra Concesiones de Infraestructuras de Transporte SA (g) 7,334 93 Endesa SA 12,113 414 Fomento de Construcciones y Contratas SA 931 73 Gas Natural SDG SA (g) 16,755 541 Grupo Ferrovial SA (g) 1,326 107 CONTINUED 92 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED SPAIN, CONTINUED Iberdrola SA 10,338 $ 367 Indra Sistemas SA 2,092 42 Industria de Diseno Textil SA 4,668 203 Repsol SA 18,817 529 Sociedad General De Aguas De Barcelona SA 2,047 56 Telefonica SA 108,118 1,829 Union Electric Fenosa SA (g) 2,178 89 Vallehermoso SA 2,086 78 ----------- 9,328 ----------- SWEDEN (2.1%) Alfa Laval AB 900 29 Assa Abloy AB, Series B 12,150 200 Atlas Copco AB, A Shares 12,092 301 Atlas Copco AB, B Shares 7,200 171 Billerud 4,050 62 Electrolux AB, Series B 7,900 115 Eniro AB 4,900 56 Ericsson LM, Series B 593,737 1,871 Getinge AB, B Shares 6,400 115 Hennes & Mauritz AB, Series B 12,550 466 Holmen AB 2,100 90 Husqvarna AB, B Shares * 7,900 85 Modern Times Group MTG AB, B Shares * 1,550 77 Nordea Bank AB 130,222 1,631 Sandvik AB 38,440 400 Scania AB, Series B 4,000 180 Securitas AB, Series B 15,700 293 Shanska AB, Series B 13,117 206 Skandiaviska Enskil 22,520 555 SKF AB, Series B 12,200 173 SSAB Svenskt Stal AB, Series A 7,200 143 Svenska Cellulosa AB, Series B 7,600 319 Svenska Handelsbanken, Series A 36,502 925 Swedish Match AB 19,700 325 Tele2 AB (g) 5,425 53 Telia 53,426 300 Volvo AB, Series A 3,633 195 Volvo AB, Series B 8,410 445 WM-Data AB 9,600 32 ----------- 9,813 ----------- SWITZERLAND (5.3%) Abb, Ltd. 67,709 875 Adecco SA, Registered 1,689 98 Ciba Specialty Chemicals AG 2,570 142 Clariant AG 8,759 120 Compagnie Finaciere Richemont AG 13,296 600 Credit Suisse Group 27,666 1,551 Geberit AG 170 190 Givaudan 268 221 Holcim, Ltd. 7,707 602 CONTINUED SHARES VALUE ----------- ----------- FOREIGN STOCKS, CONTINUED SWITZERLAND, CONTINUED Kudelski SA 1,850 $ 40 Logitech International S.A. * 7,960 162 Lonza Group AG 1,476 100 Nestle 15,523 5,089 Nobel Biocare Holding AG 963 228 Novartis AG, Registered 77,814 4,421 Roche Holdings AG, Genusscheine 23,396 4,165 Schindler Holding AG 2,450 131 Serono SA 174 118 Societe Generale de Surveillance Holdings SA 132 122 Straumann AG 510 130 Swiss Reinsurance 2,788 201 Swisscom AG 664 219 Syngenta 4,147 596 Synthes, Inc. 2,018 233 The Swatch Group AG, Series B 1,016 181 UBS AG 78,142 4,253 Zurich Financial Services 2,010 451 ----------- 25,239 ----------- TURKEY (0.7%) Akbank TAS 99,593 480 Anadolu Efes Biracilik ve Malt Sanayii AS 2,297 61 Arcelik AS 19,534 121 Dogan Sirketler Grubu Holding AS 42,270 174 Dogan Yayin Holding AS * 26,147 88 Eregli Demir ve Celik Fabrikalari TAS 45,737 234 Ford Otomotiv Sanayi AS 11,885 81 Haci Omer Sabanci Holding AS 71,444 227 Hurriyet Gazetecilik ve Matbaacilik AS 14,856 34 Koc Holding AS * 37,480 130 Migros Turk AS * 15,768 127 Trakya Cam Sanayii AS 6,357 16 Tupras-Turkiye Petrol Rafinerileri AS 14,064 265 Turk Hava Yollari Anonim Ortakligi * 5,160 18 Turk Sise ve Cam Fabrikalari AS * 14,713 46 Turkcell Iletisim Hizmetleri AS 56,386 252 Turkiye Garanti Bankasi AS 123,855 356 Turkiye Is Bankasi 86,742 465 Yapi ve Kredi Bankasi AS * 104,700 165 ----------- 3,340 ----------- TOTAL FOREIGN STOCKS 429,006 ----------- PREFERRED STOCKS (0.9%) BRAZIL (0.7%) Banco Bradesco SA 17,000 570 Brasil Telecom Participacoes SA 10,895,000 68 Companhia de Bebidas das Americas 771,000 312 Companhia Energetica de Minas Gerais 4,560,000 198 Gerdau SA 16,000 251 Klabin SA 27,000 60 CONTINUED 93 INTERNATIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- PREFERRED STOCKS, CONTINUED BRAZIL, CONTINUED Petroleo Brasileiro SA 103,300 $ 2,135 Sadia SA 23,000 65 Votorantim Celulose e Papel SA 4,000 62 ----------- 3,721 ----------- GERMANY (0.1%) Volkswagen AG 5,125 273 ----------- RUSSIA (0.1%) Surgutneftegaz ADR 3,100 324 ----------- TOTAL PREFERRED STOCKS 4,318 ----------- INVESTMENT COMPANIES (3.5%) UNITED STATES (3.5%) DWS Latin America Fund 14,934 796 Excelsior Pacific Asia Fund * 33 -- # Invesco Gold and Precision Metals Fund * 59 -- # iShares MSCI Emerging Markets Index Fund (g) 15,900 1,528 iShares MSCI Germany Index Fund (g) 165,500 3,788 iShares MSCI Hong Kong Index Fund (g) 561,700 7,724 Matthews China Fund 55,918 1,011 Matthews Pacific Tiger Fund 80,040 1,622 ----------- TOTAL INVESTMENT COMPANIES 16,469 ----------- RIGHTS (0.0%) GREAT BRITAIN (0.0%) Resolution PLC, Rights N/P 901 2 ----------- TOTAL RIGHTS 2 ----------- MONEY MARKETS (3.0%) UNITED STATES (3.0%) JPMorgan Prime Money Market Fund 14,141,789 14,142 ----------- TOTAL MONEY MARKETS 14,142 ----------- CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- SHORT TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (6.0%) Pool of various securities for Fifth Third Funds $ 28,616 $ 28,616 ----------- TOTAL SHORT TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 28,616 ----------- TOTAL INVESTMENTS (COST $426,676) + - 103.7% 492,553 LIABILITIES IN EXCESS OF OTHER ASSETS - (3.7)% (17,426) ----------- NET ASSETS - 100.0% $ 475,127 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 94 HIGH YIELD BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS (91.3%) AES Corp., 8.75%, 5/15/13 $ 1,000 $ 1,070 Allied Waste North America, 7.25%, 750 724 3/15/15 Asbury Automotive Group, 8.00%, 750 732 3/15/14 Atlas Pipeline Partners, 8.13%, 90 91 12/15/15 Atlas Pipeline Partners, 8.13%, 219 221 12/15/15 Autonation, Inc., 7.00%, 4/15/14 (e) 112 111 Basic Energy Services, 7.13%, 4/15/16 (e) 750 699 Beazer Homes USA, 6.88%, 7/15/15 750 668 Bluewater Finance Ltd., 10.25%, 700 712 2/15/12 Bristow Group, Inc., 6.13%, 6/15/13 600 557 Buckeye Technologies, Inc., 8.50%, 750 731 10/1/13 Case Corp., 7.25%, 1/15/16 365 354 Case New Holland, Inc., 9.25%, 750 790 8/1/11 Cenveo Corp., 7.88%, 12/1/13 862 839 Chaparral Steel Co., 10.00%, 7/15/13 750 827 CHC Helicopter Corp., 7.38%, 5/1/14 870 817 Chesapeake Energy Corp., 6.88%, 750 724 1/15/16 Chesapeake Energy Corp., 6.50%, 149 139 8/15/17 Citizens Communications, 6.25%, 564 537 1/15/13 CMS Energy Corp., 6.30%, 2/1/12 800 766 Communications & Power Industries, 750 750 8.00%, 2/1/12 (e) Consol Energy, Inc., 7.88%, 3/1/12 750 770 Copano Energy LLC, 8.13%, 3/1/16 (e) 171 172 CSC Holdings, Inc., 8.13%, 8/15/09 750 768 Del Monte Corp., 8.63%, 12/15/12 (e) 550 571 Del Monte Corp., 6.75%, 2/15/15 (e) 750 699 Dex Media, Inc., 0.00%, 11/15/13 645 532 Dex Media, Inc., 0.00%, 11/15/13 215 177 Dex Media, Inc., 8.00%, 11/15/13 184 184 Dow Jones CDX High Yield, 8.63%, 2,000 1,971 6/29/11 Dresser-Rand Group, Inc., 7.38%, 850 812 11/1/14 DRS Technologies, Inc., 6.63%, 256 246 2/1/16 Edison Mission Energy, 7.50%, 6/15/13 (e) 249 246 Enterprise Products, 8.38%, 8/1/66 (g) 1,600 1,635 Fisher Scientific International, 6.75%, 750 745 8/15/14 Ford Motor Co., 7.45%, 7/16/31 (g) 800 588 Ford Motor Credit Co., 7.88%, 875 823 6/15/10 Forest Oil Corp., 8.00%, 12/15/11 750 771 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Foundation PA Coal Co., 7.25%, $ 750 $ 728 8/1/14 GCI, Inc., 7.25%, 2/15/14 750 716 General Motors Acceptance Corp., 750 726 6.88%, 9/15/11 General Motors Acceptance Corp., 750 736 8.00%, 11/1/31 Georgia - Pacific Corp., 7.70%, 750 718 6/15/15 Gibraltar Industries, Inc., 8.00%, 750 746 12/1/15 (e) Glencore Funding LLC, 6.00%, 4/15/14 (e) 750 698 Hanover Equipment Trust, Series B, 750 782 8.75%, 9/1/11 HCA, Inc., 6.50%, 2/15/16 1,500 1,194 Houghton Mifflin Co., 8.25%, 2/1/11 750 758 IKON Office Solutions, 7.75%, 9/15/15 (g) 750 743 Jarden Corp., 9.75%, 5/1/12 750 780 K. Hovnanian Enterprises, 6.25%, 1,000 865 1/15/15 K. Hovnanian Enterprises, 8.63%, 250 244 1/15/17 (g) KB Home, 7.25%, 6/15/18 1,000 914 M/I Homes, Inc., 6.88%, 4/1/12 500 428 Massey Energy Co., 6.88%, 12/15/13 750 692 Mirant North America LLC, 7.38%, 750 721 12/31/13 (e) Mylan Laboratories, Inc., 6.38%, 750 724 8/15/15 Nell AF SARL, 8.38%, 8/15/15 (e)(g) 750 728 Novelis, Inc., 8.00%, 2/15/15 (e) 600 580 NRG Energy, Inc., 7.25%, 2/1/14 730 714 Omnicare, Inc., 6.88%, 12/15/15 107 103 Overseas Shipholding Group, 8.75%, 280 297 12/1/13 Owens-Brockway Glass Containers, 750 791 8.75%, 11/15/12 Panamsat Corp., 9.00%, 8/15/14 623 633 Paramount Resources Ltd., 8.50%, 750 773 1/31/13 Pilgrim's Pride Corp., 9.63%, 9/15/11 150 157 Pilgrim's Pride Corp., 9.25%, 11/15/13 1,000 1,003 Polyone Corp., 8.88%, 5/1/12 (g) 750 749 Quebecor Media, 7.75%, 3/15/16 902 886 Qwest Corp., 7.88%, 9/1/11 750 777 Range Resources Corp., 7.38%, 585 589 7/15/13 Range Resources Corp., 7.50%, 250 253 5/15/16 Reliant Energy, Inc., 9.50%, 7/15/13 750 769 Rogers Wireless, Inc., 7.25%, 750 759 12/15/12 Sensata Technologies BV, 8.00%, 714 685 5/1/14 (e) CONTINUED 95 HIGH YIELD BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Service Corp. International, 8.00%, $ 750 $ 700 6/15/17 (e) Sierra Pacific Power Co., 6.00%, 320 309 5/15/16 Solo Cup Co., 8.50%, 2/15/14 (g) 750 649 Southern Copper Corp., 6.38%, 500 485 7/27/15 Station Casinos, 6.50%, 2/1/14 750 690 Stena AB, 7.50%, 11/1/13 750 726 Stena AB, 7.00%, 12/1/16 250 233 Stewart Enterprises, 6.25%, 2/15/13 500 446 Sungard Data Systems, Inc., 9.13%, 750 766 8/15/13 Texas Industries, Inc., 7.25%, 705 706 7/15/13 Transcont Gas Pipe Corp., 6.40%, 679 653 4/15/16 Trinity Industries, Inc., 6.50%, 750 728 3/15/14 United Auto Group, Inc., 9.63%, 275 287 3/15/12 United Refining Co., 10.50%, 8/15/12 750 791 United Rentals NA, Inc., 6.50%, 750 709 2/15/12 US Concrete, Inc., 8.38%, 4/1/14 (e) 1,000 990 Videotron LTEE, 6.88%, 1/15/14 750 716 Windstream Corp., 8.13%, 8/1/13 (e) 181 188 Windstream Corp., 8.63%, 8/1/16 (e) 144 150 TOTAL CORPORATE BONDS 60,650 ----------- INVESTMENTS IN AFFILIATES (h) (6.8%) Fifth Third Institutional Money Market Fund 4,505,557 4,506 ----------- TOTAL INVESTMENTS IN AFFILIATES 4,506 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (7.8%) Pool of various securities for Fifth Third Funds 5,202 5,202 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 5,202 ----------- TOTAL INVESTMENTS (COST $72,362)+ - 105.9% 70,358 LIABILITIES IN EXCESS OF OTHER ASSETS - (5.9)% (3,937) ----------- NET ASSETS - 100.0% $ 66,421 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- COMMERCIAL PAPER (6.9%) ABN Amro North American Finance, $ 430 $ 429 5.28%, 8/17/06 **(f) Credit Suisse, 5.33%, 8/21/06 **(f) 2,270 2,263 Dexia Delaware LLC, 5.29%, 8/14/06 **(f) 12,000 11,978 Merrill Lynch & Co., 5.32%, 8/17/06 **(f) 1,095 1,092 Royal Bank of Scotland, 5.27%, 8/14/06 **(f) 2,570 2,565 ----------- TOTAL COMMERCIAL PAPER 18,327 ----------- CORPORATE BONDS (62.1%) Banc of America Commercial Mortgage, 2,850 2,722 Inc., Series 2005-6, Class AJ, 5.18%, 9/10/47 Bank of Montreal-Chicago, 7.80%, 2,000 2,028 4/1/07 Bear Stearns Adjustable Rate Mortgage 1,337 1,311 Trust, Series 2004-10, Class 12A3, 4.66%, 1/25/35 (d) Bear Stearns Adjustable Rate Mortgage 3,982 3,949 Trust, Series 2005-12, Class 11A2, 5.42%, 2/25/36 (d) Bear Stearns Adjustable Rate Mortgage 3,859 3,769 Trust, Series 2005-12, Class 13A1, 5.48%, 2/25/36 (d) Bear Stearns Commercial Mortgage 1,487 1,510 Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 Bear Stearns Commercial Mortgage 2,000 1,941 Securities, Inc., Series 2004-T14, Class A4, 5.20%, 1/12/41 Bear Stearns Commercial Mortgage 7,500 7,055 Securities, Series 2004-T16, Class A6, 4.75%, 2/13/46 (d) Chaseflex Trust, Series 2006-1, Class 1,600 1,602 A2A, 5.94%, 6/25/36 (d) Cigna CDO Ltd., Series 2000-1X, Class 4,556 4,562 A, 5.64%, 8/28/12 (d) (e) Comcast Cable, 7.13%, 6/15/13 1,750 1,847 Countrywide Alternative Loan Trust, 628 631 6.50%, 9/25/34 (d) Countrywide Asset-Backed Certificates, 522 522 Series 2002-BC1, Class M1, 6.81%, 4/25/32 (d)(f) Cox Communications, Inc., 5.50%, 10/1/15 800 745 Credit-Based Asset Servicing and 3,350 3,259 Securitization, Series 2006-CB1, Class AF4, 5.44%, 1/25/36 DaimlerChrysler, 8.50%, 1/18/31 600 693 Devon Energy Corp., 7.95%, 4/15/32 700 825 Duke Energy Corp., 6.45%, 10/15/32 850 860 Equity One ABS, Inc., Series 2004-1, 4,000 3,923 Class AF4, 4.15%, 4/25/34 (d) First Union-Lehman Brothers, 7.00%, 2,750 2,898 4/18/29 (e) CONTINUED 96 BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Fleet/Norstar Group, 8.63%, 1/15/07 $ 1,000 $ 1,013 Gazprom International, 7.20%, 2/1/20 (e) 1,000 1,037 General Electric Capital Corp., 6.75%, 1,055 1,148 3/15/32 General Motors Acceptance Corp., 319 319 Mortgage Corp. Loan Trust, 5.62%, 12/25/20 (d)(f) General Motors Acceptance Corp., 2,700 2,623 Mortgage Corp. Loan Trust, 5.00%, 10/25/33 General Motors Acceptance Corp., 1,750 1,714 Mortgage Corp. Loan Trust, 4.34%, 11/1/34 (d) Global Signal Trust, Series 2006-1, 2,550 2,524 Class C, 5.71%, 2/15/36 (d) (e) Greenwich Capital Commercial Funding 1,000 964 Corp., Series 2002-C1, Class A4, 4.95%, 1/11/35 Greenwich Capital Commercial Funding 2,000 1,948 Corp., Series 2004-GG1, Class A5, 4.88%, 6/10/36 GS Mortgage Securities Corp. II, Series 4,900 4,794 2004-GG2, Class A3, 4.60%, 8/10/38 Harley-Davidson Motorcycle Trust, 207 202 Series 2004-2, Class B, 2.96%, 2/15/12 Hertz Vehicle Financing LLC, Series 3,000 2,971 2005-2A, Class A6, 5.08%, 11/25/11 (e) Homebanc Mortgage Trust, Series 2,881 2,890 2004-2, 5.84%, 12/25/34 (d)(f) Homebanc Mortgage Trust, Series 952 956 2006-1, Class 1A1, 6.17%, 4/25/37 (d) Household Finance Corp., 6.50%, 170 174 11/15/08 IndyMac Index Mortgage Loan Trust, 4,436 4,459 Series 2005-AR9, 5.45%, 7/25/35 (d) iStar Financial, Inc., 6.00%, 12/15/10 1,500 1,507 JP Morgan Chase Commercial Mortgage 71 71 Securities Corp., Series 2001-CIBC, Class A2, 6.00%, 3/15/33 JP Morgan Chase Commercial Mortgage 865 845 Securities Corp., Series 2003-CB6, Class A2, 5.26%, 7/12/37 JP Morgan Mortgage Trust, Series 1,083 1,056 2005-A1, Class 2A1, 4.84%, 2/25/35 (d) JP Morgan Mortgage Trust, Series 3,000 2,898 2005-A2, Class 3A2, 4.93%, 4/25/35 JP Morgan Mortgage Trust, Series 3,966 3,868 2005-A2, Class 7CB1, 4.90%, 4/25/35 (d) JP Morgan Mortgage Trust, Series 2,954 2,922 2005-A3, Class 7CA1, 5.17%, 6/25/35 JP Morgan Mortgage Trust, Series 3,770 3,714 2005-ALT1, Class 4A1, 5.65%, 10/25/35 (d) JP Morgan Mortgage Trust, Series 3,742 3,685 2006-A2, Class 3A2, 5.69%, 4/25/36 (d) CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Kroger Co., 6.20%, 6/15/12 $ 500 $ 504 LB-UBS Commercial Mortgage Trust, 330 319 Series 2005-C3, 4.55%, 7/15/30 Lehman Brothers Holdings, 8.25%, 170 174 6/15/07 Merrill Lynch & Co., 4.25%, 2/8/10 1,000 957 Morgan Stanley Capital I, 5.11%, 3,200 3,078 6/15/40 Morgan Stanley Dean Witter Capital I, 2,590 2,477 4.74%, 11/13/36 Morgan Stanley Mortgage Loan Trust, 2,268 2,190 5.00%, 8/25/19 Motorola, Inc., 6.50%, 11/15/28 (g) 805 814 National City Bank, 7.25%, 7/15/10 2,000 2,123 National Rural Utilities, 7.25%, 3/1/12 125 134 Navistar Financial Corp. Owner Trust, 2,981 2,983 5.57%, 4/15/08 (d)(f) Navistar Financial Corp. Owner Trust, 1,101 1,059 Series 2004-A, Class B, 2.46%, 3/15/11 NCNB Corp., 10.20%, 7/15/15 2,500 3,234 Norfolk Southern Corp., 5.59%, 130 122 5/17/25 Oncor Electric Delivery, 7.00%, 5/1/32 480 506 Pemex Master Trust, 6.13%, 8/15/08 825 827 Republic New York Corp., 7.00%, 2,000 2,105 3/22/11 Residential Accredit Loans, Inc., 5.66%, 1,699 1,699 3/25/34 (d)(f) Residential Accredit Loans, Inc., Series 4,051 4,031 2005-QA12, Class CB1, 5.77%, 12/25/35 (d) Residential Asset Mortgage Products, 3,305 3,218 Inc., Series 2003-RZ5, Class A7, 4.97%, 9/25/33 (d) Residential Asset Securities Corp., 133 133 5.63%, 3/25/34 (d)(f) SACO I Trust, Series 2004-2, Class A3, 1,804 1,805 5.86%, 10/25/34 (d)(f) Science Applications International Co., 2,105 1,797 5.50%, 7/1/33 SLM Corp., 5.00%, 4/15/15 175 164 Structured Asset Securities Corp., 1,245 1,196 5.15%, 12/25/34 (d) Suntrust Alternative Loan Trust, Series 1,396 1,225 2005-1F, Class B3, 6.07%, 12/25/35 (d) Swiss Bank Corp. - New York, 7.38%, 2,000 2,230 7/15/15 Thornburg Mortgage Securities Trust, 4,275 4,314 Series 2004-2, Class A3, 5.60%, 6/25/44 (d)(f) Time Warner Entertainment, 8.38%, 460 519 7/15/33 Trans-Canada Pipeline, 5.60%, 3/31/34 750 698 Travelers Property Casualty Corp., 85 97 7.75%, 4/15/26 CONTINUED 97 BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Truck Retail Installment Paper Corp., $ 6,950 $ 6,969 5.64%, 12/15/16 (d) (e) (f) UBS Preferred Funding Trust I, 8.62%, 925 1,018 10/29/49 (d) US Bank NA, 6.30%, 2/4/14 345 358 Vodafone Group PLC, 5.75%, 3/15/16 775 748 Washington Mutual, Series 2003-AR9, 5,862 5,695 Class 1A6, 4.05%, 9/25/33 (d) Washington Mutual, Series 2004-AR3, 1,677 1,635 Class A-2, 4.24%, 6/25/34 Wells Fargo Mortgage Backed Securities 2,981 2,893 Trust, 5.14%, 5/25/35 (d) Wells Fargo Mortgage Backed Securities 1,550 1,471 Trust, Series 2003-N, 4.75%, 12/25/33 (d) YUM! Brands Inc., 7.70%, 7/1/12 1,250 1,357 ----------- TOTAL CORPORATE BONDS 165,830 ----------- FOREIGN BONDS (0.8%) France Telecom, 8.75%, 3/1/31 650 802 United Mexican States, 4.63%, 10/8/08 1,460 1,431 ----------- TOTAL FOREIGN BONDS 2,233 ----------- U.S. GOVERNMENT AGENCIES (44.0%) FANNIE MAE (25.5%) 6.05%, 12/1/08 2,834 2,850 6.00%, 5/1/17 218 220 6.50%, 6/1/17 309 313 6.50%, 8/1/17 218 221 5.50%, 1/1/18 15 14 5.50%, 2/1/18 8 8 4.50%, 5/1/18 7,200 6,877 6.00%, 5/1/18 1,155 1,166 5.50%, 2/1/25 1,485 1,458 5.00%, 5/1/25 2,389 2,288 7.50%, 6/1/28 236 245 6.50%, 8/1/28 210 214 6.50%, 6/1/29 191 194 6.50%, 4/1/32 426 432 6.50%, 6/1/32 880 894 7.00%, 6/1/32 261 269 6.50%, 7/1/32 694 706 6.50%, 7/1/32 548 557 7.50%, 12/1/32 211 219 6.00%, 1/1/33 414 413 6.50%, 3/1/33 318 322 5.00%, 5/1/33 16,000 15,142 5.50%, 5/1/33 11,000 10,682 6.00%, 8/25/33 (d) 2,640 2,579 5.50%, 5/25/34 3,150 2,886 7.00%, 9/1/34 224 230 5.50%, 6/1/35 940 914 6.00%, 7/1/35 4,959 4,929 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. GOVERNMENT AGENCIES, CONTINUED FANNIE MAE, CONTINUED 6.00%, 9/1/35 $ 2,738 $ 2,723 5.00%, 11/1/35 4,057 3,841 6.00%, 1/1/36 4,533 4,508 ----------- 68,314 ----------- FEDERAL HOME LOAN BANK (1.5%) 4.06%, 8/25/09 3,383 3,271 4.00%, 2/25/10 681 667 ----------- 3,938 ----------- FREDDIE MAC (12.0%) 4.50%, 8/15/16 3,000 2,867 4.00%, 1/15/17 7,500 6,986 5.00%, 2/15/25 3,245 2,968 6.50%, 1/1/29 1,705 1,735 7.00%, 1/1/32 140 145 6.50%, 7/1/32 295 300 7.00%, 8/1/32 581 597 6.50%, 9/1/32 155 158 5.50%, 2/1/33 12,900 12,532 6.00%, 9/1/33 627 624 6.50%, 5/15/34 (d) 1,277 1,213 4.50%, 6/1/34 947 873 4.50%, 9/1/34 1,182 1,089 ----------- 32,087 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (5.0%) 5.00%, 7/1/33 4,000 3,819 5.50%, 10/1/33 5,000 4,895 0.80%, 5/16/46 (d) 25,000 1,469 3.40%, 5/16/46 (d) 2,500 1,563 1.06%, 12/16/47 (d) 25,000 1,500 ----------- 13,246 ----------- TOTAL U.S. GOVERNMENT AGENCIES 117,585 ----------- U.S. TREASURY OBLIGATIONS (0.6%) U.S. TREASURY BONDS (0.4%) 5.00%, 11/15/27 ** 2,900 975 ----------- U.S. TREASURY NOTES (0.2%) 5.45%, 5/15/17 ** 1,080 625 ----------- TOTAL U.S. TREASURY OBLIGATIONS 1,600 ----------- INVESTMENTS IN AFFILIATES (h) (3.0%) Fifth Third Institutional Money Market Fund 7,932,886 7,933 ----------- TOTAL INVESTMENTS IN AFFILIATES 7,933 ----------- CONTINUED 98 BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (0.3%) Pool of various securities for Fifth Third Funds $ 745 $ 745 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 745 ----------- TOTAL INVESTMENTS (COST $318,231) + - 117.7% 314,253 LIABILITIES IN EXCESS OF OTHER ASSETS - (17.7)% (47,221) ----------- NET ASSETS - 100.0% $ 267,032 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. INTERMEDIATE BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS (84.6%) ABN Amro NA Holding Cap, 6.52%, $ 2,997 $ 3,053 11/8/12 (d) (e) Ace Securities Corp., 6.00%, 9/25/35 (d) 3,000 3,024 Alabama Power Cap, 5.50%, 10/1/42 (d) 874 864 Ameriprise Financial, Inc., 5.65%, 11/15/15 1,480 1,445 Arizona Public Services, 6.88%, 8/1/36 5,000 4,992 Associated Bank, NA, 5.36%, 6/2/08 (d) 5,000 5,008 AT&T Broadband Corp., 8.38%, 3/15/13 825 924 Bank of America Corp., 9.38%, 9/15/09 5,000 5,558 BankAmerica Capital, 8.00%, 12/15/26 2,000 2,093 Bear Stearns Adjustable Rate Mortgage Trust, 4.91%, 7/25/34 (d) 3,843 3,685 Bear Stearns Alternative-A Trust, Series 2005-9, 5.85%, 11/25/35 2,026 2,037 Bear Stearns Commercial Mortgage Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 1,268 1,287 Chaseflex Trust, Series 2005-2, 5.96%, 6/25/35 5,387 5,237 Chaseflex Trust, Series 2006-1, Class A4, 6.30%, 6/25/36 (d) 7,344 7,296 Chaseflex Trust, Series 2006-1, Class A6, 6.29%, 6/25/36 (d) 5,265 5,272 CIT Group, Inc., 5.13%, 9/30/14 2,000 1,896 Citigroup Commercial Mortgage Trust, Series 2005-EMG, 4.38%, 9/20/51 (e) 5,000 4,763 Commerce Group, Inc., 5.95%, 12/9/13 (g) 1,000 980 Commercial Mortgage Acceptance Corp., Series 1998-C2, Class F, 5.44%, 9/15/30 (d) 3,500 3,435 Commercial Mortgage Asset Trust, Series 1999-C1, Class B, 7.23%, 1/17/32 (d) 1,500 1,634 Countrywide Alternative Loan Trust, 5.75%, 5/25/26 (d) 2,376 2,368 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 4,117 4,017 Countrywide Alternative Loan Trust, Series 2005-10CB, Class 1A2, 5.50%, 5/25/35 (d) 1,895 1,897 Countrywide Alternative Loan Trust, Series 2005-10CB, Class 1A6, 5.50%, 5/25/35 3,710 3,636 Countrywide Alternative Loan Trust, Series 2005-7CB, Class M, 5.50%, 4/25/35 2,475 2,352 CONTINUED 99 INTERMEDIATE BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Countrywide Home Loan, 4.00%, 3/22/11 (g) $ 2,325 $ 2,158 Countrywide Home Loans, 5.38%, 2/27/08 (d) 1,000 1,000 Cox Communications, Inc., 7.13%, 10/1/12 1,550 1,614 Credit Suisse First Boston Mortgage Securities Corp., Series 2002-CKN2, 6.38%, 4/15/37 1,000 1,033 Credit Suisse First Boston, Inc., 5.13%, 8/15/15 1,910 1,812 Credit-Based Asset Servicing and Securitization, Series 2006-CB1, Class AF4, 5.44%, 1/25/36 3,025 2,943 Credit-Based Asset Servicing and Securitization, Series 2006-CB2, Class AF2, 5.50%, 12/25/36 (d) 2,400 2,388 Credit-Based Asset Servicing and Securitizing, 5.43%, 11/25/36 (d) 2,475 2,405 Crown Castle Towers LLC, Series 2005-1A, 4.64%, 6/15/35 (e) 4,000 3,875 CS First Boston Mortgage Securities Corp., Series 2003-CK2, Class A4, 4.80%, 3/15/36 4,750 4,537 Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AB3, Class A3, 6.51%, 7/28/36 2,445 2,475 Deutsche Alternative-A Securities Inc., Mortgage Loan Trust, 5.05%, 9/25/35 1,540 1,521 Deutsche Mortgage Securities Inc., Series 2005-1, 5.75%, 2/25/35 4,891 4,739 Deutsche Mortgage Securities, Inc., 5.03%, 6/26/35 (d) 2,131 2,121 Dover Corp., 4.88%, 10/15/15 1,000 935 Duke Capital LLC, 5.50%, 3/1/14 1,825 1,754 Duke Realty Corp., 5.70%, 12/22/06 (d) 2,880 2,882 First Horizon ABS Trust, Series 2006-HE1, Class A, 5.48%, 10/25/34 (d) 2,270 2,270 First Horizon Mortgage Pass Through Trust, Series 2006-AR1, Class 3A1, 6.03%, 4/25/36 (d) 4,176 4,165 First Tennessee Bank, Series BKNT, 5.65%, 4/1/16 2,000 1,951 First Union-Lehman Brothers, 7.00%, 4/18/29 (e) 3,220 3,393 Fleet Financial Group, 7.38%, 12/1/09 5,000 5,291 Gazprom International, 7.20%, 2/1/20 (e) 2,000 2,075 GE Global Insurance Holding, 6.45%, 3/1/19 1,000 1,020 Global Signal Trust, Series 2006-1, Class D, 6.05%, 2/15/36 (e) 3,000 2,962 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Goldman Sachs Group, Inc., 5.00%, 10/1/14 (g) $ 2,500 $ 2,355 Goldman Sachs Group, Inc., Series MTN, 5.02%, 3/2/10 (d) 5,000 5,008 Green Tree Financial Corp., Series 1998-6, Class A6, 6.27%, 6/1/30 224 224 GS Mortgage Securities Corp. II, Series 2004-C1, Class B, 4.46%, 10/10/28 (d) 2,600 2,481 GS Mortgage Securities Corp. II, Series 2004-C1, Class C, 4.52%, 10/10/28 (d) 3,888 3,714 GSR Mortgage Loan Trust, Series 2005-AR6, Class 3A1, 4.56%, 9/25/35 (d) 2,253 2,201 Hibernia Corp., 5.35%, 5/1/14 2,845 2,712 Homebanc Mortgage Trust, Series 2006-1, Class 2A1, 6.11%, 4/25/37 (d) 4,659 4,683 HSBC Bank USA, 4.63%, 4/1/14 2,000 1,855 HSBC Finance Corp., 6.38%, 10/15/11 (g) 2,000 2,063 Indiana Michigan Power, 5.05%, 11/15/14 2,035 1,905 Indymac Home Equity Loan, Series 2002-B, Class B1, 8.22%, 10/25/33 (d) 530 531 International Lease Finance Corp., 5.88%, 5/1/13 2,500 2,512 Jefferies Group, Inc., 5.50%, 3/15/16 1,000 945 JP Morgan Alternative Loan Trust, Series 2005-S1, Class 1A2, 5.50%, 12/25/35 2,381 2,349 JP Morgan Alternative Loan Trust, Series 2006-A4, Class A7, 6.30%, 7/26/36 (d) 5,000 5,011 JP Morgan Alternative Loan Trust, Series 2006-A4, Class A9, 6.30%, 7/1/36 5,020 5,039 JP Morgan Alternative Loan Trust, Series 2006-S1, Class 1A18, 6.00%, 3/25/36 (d) 4,661 4,623 JP Morgan Alternative Loan Trust, Series 2006-S2, Class A3, 5.92%, 5/25/36 (d) 4,730 4,667 JP Morgan Alternative Loan Trust, Series 2006-S2, Class A6, 6.05%, 5/25/36 (d) 4,975 4,961 JP Morgan Alternative Loan Trust, Series 2006-S3, Class A3A, 6.00%, 7/1/36 4,529 4,536 JP Morgan Alternative Loan Trust, Series 2006-S3, Class A7, 6.24%, 8/25/36 5,245 5,251 CONTINUED 100 INTERMEDIATE BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED JP Morgan Chase & Co., 5.13%, 9/15/14 $ 1,755 $ 1,671 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-CB6, Class A2, 5.26%, 7/12/37 4,460 4,358 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-LN1, Class A2, 4.92%, 10/15/37 6,680 6,385 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class AJ, 5.88%, 4/15/45 (d) 4,785 4,835 JP Morgan Mortgage Trust, Series 2003-A1, Class 4A4, 4.71%, 10/25/33 (d) 5,000 4,746 JP Morgan Mortgage Trust, Series 2005-A1, Class 3A4, 5.05%, 2/25/35 6,218 6,030 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.36%, 4/25/35 (d) 4,211 4,025 JP Morgan Mortgage Trust, Series 2005-A3, 4.52%, 6/25/35 4,511 4,358 JP Morgan Mortgage Trust, Series 2005-A6, Class 1B1, 5.18%, 9/25/35 (d) 2,639 2,540 JP Morgan Mortgage Trust, Series 2005-ALT1, Class 4A1, 5.65%, 10/25/35 (d) 2,218 2,185 JP Morgan Mortgage Trust, Series 2005-S1, Class B1, 6.26%, 1/25/35 2,629 2,595 JP Morgan Mortgage Trust, Series 2006-A1, Class 3A2, 5.64%, 2/25/36 2,290 2,261 JP Morgan Mortgage Trust, Series 2006-A2, Class 3A2, 5.69%, 4/25/36 (d) 4,924 4,849 JP Morgan Mortgage Trust, Series 2006-A4, Class 2A2, 5.83%, 6/25/36 (d) 7,386 7,351 JP Morgan Mortgage Trust, Series 2006-A4, Class 3A4, 6.00%, 6/25/36 (d) 8,533 8,532 Key Bank NA, 4.95%, 9/15/15 2,365 2,206 Keycorp., 5.42%, 5/26/09 (d) 2,500 2,499 Kimco Realty Corp., 4.82%, 6/1/14 1,215 1,125 LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A4, 5.12%, 11/15/32 2,924 2,844 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Manufacturers & Traders Trust Co., 3.85%, 4/1/13 (d) $ 1,075 $ 1,047 Marlin Leasing Receivables LLC, 4.75%, 8/15/12 (e) 3,000 2,983 MassMutual Global Funding II, 3.80%, 4/15/09 (e) 1,390 1,333 MBNA Master Credit Card Trust, 7.80%, 10/15/12 3,000 3,266 Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.26%, 1/12/44 2,525 2,451 Merrill Lynch Mortgage Trust, Series 2006-C1, Class ASB, 5.84%, 5/12/39 (d) 2,000 2,008 Morgan Stanley, 4.75%, 4/1/14 3,500 3,251 Morgan Stanley Capital I, Series 2006-HQ8, Class AJ, 5.47%, 3/12/44 (d) 2,529 2,489 Morgan Stanley Capital, Series 2005-HQ7, Class AM, 5.21%, 11/14/42 2,500 2,420 National City Bank, 4.25%, 1/29/10 2,375 2,280 Nelnet, Inc., 5.13%, 6/1/10 3,100 2,993 Nextel Communications, 7.38%, 8/1/15 1,285 1,316 NiSource Finance Corp., 5.76%, 11/23/09 (d) 2,795 2,800 Nomura Asset Acceptance Corp., Series 2004-AR4, Class 1A2, 4.93%, 12/25/34 1,470 1,456 Nomura Asset Acceptance Corp., Series 2005-AR1, Class 1A2, 5.40%, 2/25/35 2,557 2,527 Nomura Asset Acceptance Corp., Series 2005-AR2, Class 2A2, 5.57%, 5/25/35 (d) 1,942 1,957 Nomura Asset Acceptance Corp., Series 2005-AR3, 5.66%, 7/25/35 2,748 2,679 Nomura Asset Acceptance Corp., Series 2005-AR5, Class 2A2, 5.65%, 10/25/35 (d) 1,844 1,828 Nomura Asset Acceptance Corporation, Series 2006-AF1, Class 3A2, 6.64%, 6/25/36 (d) 3,274 3,329 Nomura Asset Securities Corp., Series 1998-D6, Class A2, 6.78%, 3/15/30 (d) 1,000 1,084 Nomura Asset Securities Corp., Series 1998-D6, Class A4, 7.62%, 3/15/30 (d) 1,600 1,782 Pemex Project Funding Master Trust, 7.38%, 12/15/14 2,000 2,130 Popular ABS Mortgage Pass-Through Trust, 4.98%, 9/15/35 1,510 1,485 CONTINUED 101 INTERMEDIATE BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Popular NA, Inc., 6.13%, 10/15/06 $ 3,150 $ 3,153 PPG Industries, Inc., 6.50%, 11/1/07 30 30 Preferred Term XXII, 6.57%, 9/22/36 (d) (e) 1,500 1,503 Premcor Refining Group, 9.25%, 2/1/10 2,000 2,126 Prestige Auto Receivables Trust, Series 2006-1A, Class A2, 5.25%, 6/17/13 (d) (e) 2,000 1,995 PSEG Power, 5.00%, 4/1/14 1,500 1,401 Ras Laffan Liquid & Natural Gas, 5.30%, 9/30/20 (e) 2,700 2,549 Regions Financial Corp., 7.00%, 3/1/11 1,275 1,348 Renaissance Home Equity Loan Trust, Series 2005-2, 4.93%, 8/25/35 (d) 2,500 2,412 Renaissance Home Equity Loan Trust, Series 2006-1, Class AF4, 6.01%, 5/25/36 1,575 1,566 Residential Funding Mortgage Securities, Series 2006-HI3, Class A4, 6.31%, 5/25/36 (d) 1,500 1,510 Residential Funding Mortgage Securities, Series 2006-HSA1, Class A4, 5.49%, 2/25/36 1,500 1,468 SACO I Trust, 5.69%, 7/25/35 (d) 2,485 2,486 Salomon Brothers Mortgage Securities VII, Series 2002-KEY2, Class A3, 4.87%, 3/18/36 2,270 2,193 Salomon Brothers Mortgage Securities, Series 2002-KEY2, Class C, 5.05%, 3/18/36 1,417 1,377 Salomon Smith Barney, 7.13%, 10/1/06 5,000 5,014 Sempra Energy, 5.66%, 5/21/08 (d) 5,000 5,004 SLM Corp., Series MTNA, 5.00%, 6/15/18 1,000 890 Southern Copper Corp., 6.38%, 7/27/15 1,000 970 Sovrisc BV, 5.25%, 4/30/11 (e) 2,000 1,995 SunTrust Alternative Loan Trust, Series 2005-1F, Class B3, 6.07%, 12/25/35 (d) 1,603 1,406 TCI Communications, Inc., 7.88%, 8/1/13 860 934 U.S. Bank, N.A., 3.75%, 2/6/09 2,500 2,403 UPFC Auto Receivables Trust, Series 2004-A, Class A3, 3.27%, 9/15/10 1,648 1,626 Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A4, 6.57%, 5/7/27 2,725 2,802 Vectren Utility Holdings, 5.45%, 12/1/15 1,000 948 Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, 4.75%, 12/25/33 (d) 2,545 2,415 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED WMALT Mortgage Pass-through Certificates, Series 2005-1, Class 1A2, 5.50%, 3/25/35 (d) $ 2,093 $ 2,051 WPS Resources Corp., 7.00%, 11/1/09 1,540 1,600 ----------- TOTAL CORPORATE BONDS 395,162 ----------- FOREIGN BONDS (0.2%) Korea Electric Power, 4.25%, 9/12/07 (e) 1,000 985 ----------- TOTAL FOREIGN BONDS 985 ----------- U.S. GOVERNMENT AGENCIES (12.4%) FANNIE MAE (1.1%) 6.25%, 1/25/08 431 432 5.65%, 4/10/13 4,675 4,648 5.21%, 8/1/34 159 156 ----------- 5,236 ----------- FEDERAL HOME LOAN BANK (2.8%) 4.50%, 8/8/08 5,000 4,929 5.00%, 9/1/10 3,240 3,214 5.13%, 11/1/10 2,855 2,824 5.63%, 12/20/10 2,200 2,197 ----------- 13,164 ----------- FREDDIE MAC (5.9%) 5.73%, 12/28/09 5,000 5,014 5.15%, 1/24/11 1,956 1,933 6.25%, 3/5/12 (g) 8,500 8,530 4.75%, 6/28/12 (g) 5,000 4,862 5.00%, 8/15/12 2,275 2,240 4.65%, 10/10/13 1,300 1,232 5.74%, 7/15/23 2,455 2,465 6.50%, 5/15/34 (d) 1,277 1,213 ----------- 27,489 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (2.6%) 9.50%, 12/15/09 1,064 1,100 5.43%, 4/16/41 (j) 2,095 2,012 0.97%, 6/17/45 (d) 10,721 602 0.53%, 3/16/46 (d) 14,242 613 0.80%, 5/16/46 (d) 20,000 1,175 0.73%, 12/16/47 (d) 23,219 1,124 0.92%, 12/16/47 (d) 35,289 1,863 1.06%, 12/16/47 (d) 55,000 3,301 ----------- 11,790 ----------- TOTAL U.S. GOVERNMENT AGENCIES 57,679 ----------- CONTINUED 102 INTERMEDIATE BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- INVESTMENTS IN AFFILIATES (h) (3.6%) Fifth Third Institutional Money Market Fund 16,949,146 $ 16,949 ----------- TOTAL INVESTMENTS IN AFFILIATES 16,949 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (4.6%) Pool of various securities for Fifth Third Funds $ 21,265 21,265 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 21,265 ----------- TOTAL INVESTMENTS (COST $498,078)+ - 105.4% 492,040 LIABILITIES IN EXCESS OF OTHER ASSETS - (5.4)% (25,017) ----------- NET ASSETS - 100.0% $ 467,023 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. SHORT TERM BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS (57.9%) Alabama Power Co., 2.80%, 12/1/06 $ 1,190 $ 1,180 Australian Gas Light Co., 6.40%, 4/15/08 (e) 3,210 3,240 Bank of America Commercial Mortgage, Inc., Series 2004-1, Class A1, 3.16%, 11/10/39 2,828 2,719 Bank of America Mortgage Securities, 4.15%, 7/25/34 (d) 3,539 3,429 Bank One Issuance Trust, Series 2004-A1, Class A1, 3.45%, 10/17/11 810 775 Bear Stearns Commercial Mortgage Securities, Inc., Series 2000-WF2, Class A1, 7.11%, 10/15/32 1,716 1,742 Bear Stearns Cos., Inc., Series 2003-AC7, Class A2, 5.25%, 1/25/34 1,519 1,479 Capital One Auto Finance Trust, 3.44%, 6/15/09 2,314 2,295 Centerpoint Energy, 6.50%, 2/1/08 1,600 1,618 Chase Mortgage Finance Corp., Series 2005-A1, Class 2A2, 5.25%, 12/25/35 (d) 3,487 3,445 CNH Equipment Trust, 4.02%, 4/15/09 2,060 2,036 Comcast Cable, 7.63%, 4/15/08 1,550 1,598 Cooper Cameron Corp., 2.65%, 4/15/07 780 764 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.25%, 3/25/34 2,346 2,289 Countrywide Alternative Loan Trust, Series 2005-14, Class 1A1, 3.30%, 5/25/35 2,844 2,774 Countrywide Home Loans, 5.03%, 4/20/35 (d) 2,585 2,560 DaimlerChrysler NA Holding, 4.75%, 1/15/08 1,500 1,478 DLJ Commercial Mortgage Corp., Series 1999-CG1, Class A1A, 6.08%, 3/10/32 723 725 First Boston Mortgage Securities Corp., Series 2001-CK6, Class A2, 6.10%, 8/15/36 2,269 2,287 General Motors Acceptance Corp., Commercial Mortgage Securities, Inc., Series 1996-C1, 7.86%, 11/15/06 (e) 800 799 General Motors Acceptance Corp., Mortgage Corp. Loan Trust, Series 2005-HE2, 4.62%, 11/25/35 4,000 3,944 General Motors Acceptance Corp., Mortgage Corporation Loan Trust, 4.24%, 10/25/33 4,170 4,055 CONTINUED 103 SHORT TERM BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED GMAC Mortgage Corp. Loan Trust, Series 2006-HE2, Class 2, 6.18%, 5/25/36 (d) $ 3,000 $ 3,013 Goldman Sachs Group, Inc., 6.65%, 5/15/09 3,000 3,094 Green Tree Financial Corp., Series 1998-6, Class A6, 6.27%, 6/1/30 321 321 Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A2, 3.84%, 6/10/36 447 442 Harborview Mortgage Loan Trust, Series 2004-5, Class 2A6, 3.96%, 6/19/34 (d) 5,730 5,565 Harley-Davidson Motorcycle Trust, Series 2004-2, Class B, 2.96%, 2/15/12 1,203 1,176 Hertz Vehicle Financing LLC, Series 2005-2A, Class A2, 4.93%, 2/25/10 (e) 3,375 3,348 Homebanc Mortgage Trust, Series 2004-2, 5.84%, 12/25/34 (d) 2,322 2,329 Homebanc Mortgage Trust, Series 2006-1, Class 1A1, 6.17%, 4/25/37 (d) 3,330 3,346 Household Automotive Trust, Series 2002-3, Class A4A, 3.44%, 5/18/09 2,069 2,042 HSBC Finance Corp., 4.63%, 1/15/08 3,500 3,462 Hyundai Auto Receivables Trust, Series 2005-A, 4.18%, 2/15/12 3,000 2,907 IBM, Corp., 3.80%, 2/1/08 3,030 2,959 Impac Commercial Holdings, Inc., Series 1998-C1, Class D, 7.58%, 8/20/30 3,500 3,603 International Lease Finance Corp., 4.75%, 7/1/09 3,000 2,936 iStar Financial, Inc., 4.88%, 1/15/09 1,600 1,566 J.P. Morgan Alternative Loan Trust, Series 2006-A3, Class 1A2, 5.42%, 7/25/36 (d) 2,937 2,936 J.P. Morgan Alternative Loan Trust, Series 2006-S2, Class A2, 5.81%, 5/25/36 (d) 2,075 2,067 John Deere Owner Trust, Series 2004-A, Class A3, 2.32%, 12/17/07 854 847 JP Morgan Mortgage Trust, Series 2005-A1, 4.90%, 2/25/35 2,911 2,840 JP Morgan Mortgage Trust, Series 2005-A2, Class 5A1, 4.36%, 4/25/35 (d) 2,558 2,445 JP Morgan Mortgage Trust, Series 2005-A3, Class 7CA1, 5.17%, 6/25/35 4,734 4,683 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS, CONTINUED Kraft Foods, Inc., 5.25%, 6/1/07 $ 1,930 $ 1,921 LB-UBS Commercial Mortgage Trust, Series 2002-C2, Class A1, 3.83%, 6/15/26 1,019 1,014 Long Beach Auto Receivables Trust, 4.40%, 5/15/10 2,875 2,838 Marlin Leasing Receivables LLC, 4.49%, 1/15/08 (e) 2,748 2,723 Merrill Lynch Mortgage Investors, Inc., Series 2003-A1, Class 2A, 4.53%, 12/25/32 497 493 Morgan Stanley Dean Witter, 8.33%, 1/15/07 3,190 3,229 Morgan Stanley Dean Witter Capital I, 3.48%, 9/15/37 1,081 1,066 Morgan Stanley Dean Witter Capital I, 3.92%, 4/14/40 5,680 5,532 Navistar Financial Corp. Owner Trust, Series 2003-B, Class A4, 3.25%, 10/15/10 3,990 3,890 Navistar Financial Corp. Owner Trust, Series 2003-B, Class B, 3.79%, 10/15/10 891 872 Nissan Auto Lease Trust, 3.18%, 6/15/10 830 817 Pemex Finance, Ltd., 8.45%, 2/15/07 400 404 Pemex Finance, Ltd., 9.69%, 8/15/09 527 556 Protective Life US Funding, 3.70%, 11/24/08 1,590 1,530 RAAC, Series 2005-SP1, 5.25%, 9/25/34 2,696 2,635 Simon Property Group LP, 7.13%, 9/20/07 2,400 2,422 SLM Corp., 5.63%, 4/10/07 4,000 3,998 SVO VOI Mortgage, Corp., Series 2005-AA, Class A, 5.25%, 2/20/21 (e) 1,515 1,494 UnitedHealth Group, Inc., 5.20%, 1/17/07 3,390 3,384 Verizon Communications, 7.51%, 4/1/09 3,300 3,439 Washington Mutual, Inc., 4.82%, 10/25/32 624 619 Washington Mutual, Inc., Series 2003-AR10, Class A4, 4.08%, 10/25/33 3,621 3,579 Wells Fargo Mortgage Backed Securities, Series 2005-AR10, Class 2A14, 4.11%, 6/25/35 (d) 3,500 3,384 ----------- TOTAL CORPORATE BONDS 156,997 ----------- CONTINUED 104 SHORT TERM BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- FOREIGN BONDS (0.5%) Korea Electric Power, 4.25%, 9/12/07 (e) $ 810 $ 799 Telecom Italia Capital, 4.00%, 11/15/08 650 626 ----------- TOTAL FOREIGN BONDS 1,425 ----------- MUNICIPAL BONDS (0.3%) OHIO (0.3%) State Economic Development Revenue, Ohio Enterprise, Series 3, 4.05%, 3/1/11 (e) 950 901 ----------- TOTAL MUNICIPAL BONDS 901 ----------- U.S. GOVERNMENT AGENCIES (29.4%) FANNIE MAE (4.5%) 3.13%, 12/15/07 1,190 1,156 4.65%, 12/25/12 3,272 3,157 4.71%, 4/1/33 (d) 2,529 2,485 5.21%, 9/1/34 3,018 2,968 5.01%, 4/1/35 2,589 2,546 ----------- 12,312 ----------- FEDERAL HOME LOAN BANK (7.8%) 3.75%, 8/15/07 3,670 3,610 4.00%, 5/15/08 5,500 5,378 3.88%, 8/22/08 (g) 5,000 4,868 4.00%, 10/27/08 4,220 4,111 4.75%, 10/25/10 3,354 3,283 ----------- 21,250 ----------- FREDDIE MAC (10.1%) 5.00%, 2/1/07 348 345 5.75%, 4/15/08 (g) 6,000 6,044 3.63%, 9/15/08 5,000 4,840 5.13%, 10/15/08 (g) 8,000 7,980 4.00%, 3/1/34 (d) 2,931 2,851 4.76%, 7/1/35 (d) 5,188 5,052 ----------- 27,112 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (7.0%) 2.87%, 2/16/20 5,231 5,029 6.11%, 11/16/21 1,962 1,979 3.27%, 1/16/23 2,788 2,664 6.00%, 2/16/24 2,882 2,913 4.29%, 9/16/25 3,120 3,037 3.72%, 12/16/26 3,452 3,316 ----------- 18,938 ----------- TOTAL U.S. GOVERNMENT AGENCIES 79,612 ----------- CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. TREASURY OBLIGATIONS (9.1%) U.S. TREASURY NOTES (9.1%) 3.00%, 11/15/07 (g) $ 6,410 $ 6,246 4.38%, 1/31/08 (g) 4,500 4,457 3.38%, 2/15/08 (g) 4,500 4,390 4.63%, 2/29/08 (g) 5,000 4,970 4.75%, 11/15/08 (g) 4,510 4,490 ----------- 24,553 ----------- TOTAL U.S. TREASURY OBLIGATIONS 24,553 ----------- INVESTMENTS IN AFFILIATES (h) (2.2%) Fifth Third Institutional Money Market Fund 5,856,528 5,857 ----------- TOTAL INVESTMENTS IN AFFILIATES 5,857 ----------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (15.7%) Pool of various securities for Fifth Third Funds $ 42,583 42,583 ----------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING 42,583 ----------- TOTAL INVESTMENTS (COST $316,575)+ - 115.1% 311,928 LIABILITIES IN EXCESS OF OTHER ASSETS - (15.1)% (40,935) ----------- NET ASSETS - 100.0% $ 270,993 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 105 U.S. GOVERNMENT BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS (3.7%) FINANCING CORPORATION (3.7%) Hertz Vehicle Financing LLC, Series 2005-2A, Class A3, (AAA wrapped by MBIA), 5.59%, 2/25/11 (d) (e) (f) $ 2,000 $ 2,004 ----------- TOTAL CORPORATE BONDS 2,004 ----------- U.S. GOVERNMENT AGENCIES (83.6%) FANNIE MAE (17.2%) 6.25%, 1/25/08 884 886 4.00%, 9/2/08 1,000 974 6.38%, 6/15/09 1,100 1,134 6.63%, 9/15/09 1,000 1,040 4.62%, 4/25/10 729 714 4.40%, 12/25/12 686 683 4.31%, 1/1/35 2,117 2,052 3.99%, 3/25/40 (d) 580 575 5.57%, 8/25/44 (d) 1,297 1,299 ----------- 9,357 ----------- FEDERAL HOME LOAN BANK (6.4%) 5.12%, 8/14/06 (f) 1,990 1,986 4.06%, 8/25/09 667 647 4.84%, 1/25/12 826 835 ----------- 3,468 ----------- FINANCING CORPORATION (9.3%) 3.59%, 4/5/09 ** 2,000 1,742 4.21%, 12/6/11 ** 2,000 1,535 4.81%, 6/6/15 ** 2,000 1,257 6.37%, 11/11/17 ** 1,000 547 ----------- 5,081 ----------- FREDDIE MAC (29.3%) 2.75%, 3/15/08 1,450 1,393 5.50%, 7/15/10 1,000 996 6.88%, 9/15/10 2,000 2,116 5.88%, 3/21/11 1,000 1,017 4.50%, 11/15/12 1,000 958 5.25%, 4/18/16 2,000 1,977 4.00%, 12/15/21 468 461 5.00%, 12/15/32 1,100 1,096 5.00%, 1/15/34 1,000 913 6.50%, 5/15/34 (d) 1,277 1,213 5.50%, 7/15/35 1,977 1,830 6.00%, 9/1/36 TBA 2,000 1,989 ----------- 15,959 ----------- CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. GOVERNMENT AGENCIES, CONTINUED GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (12.9%) 3.59%, 11/16/17 $ 441 $ 426 3.96%, 9/16/21 759 738 3.27%, 1/16/23 842 805 4.39%, 5/16/23 862 843 5.50%, 2/20/31 2,000 1,976 5.50%, 12/20/32 1,000 953 5.50%, 11/20/33 1,000 936 0.97%, 6/17/45 2,924 164 1.06%, 12/16/47 3,334 200 ----------- 7,041 ----------- SMALL BUSINESS ADMINISTRATION (6.5%) 4.94%, 8/10/15 (f) 3,657 3,564 ----------- TENNESSEE VALLEY AUTHORITY (2.0%) 6.79%, 5/23/12 1,000 1,072 ----------- TOTAL U.S. GOVERNMENT AGENCIES 45,542 ----------- U.S. TREASURY OBLIGATIONS (5.1%) U.S. TREASURY BONDS (1.8%) 4.75%, 5/15/14 1,000 987 ----------- U.S. TREASURY NOTES (3.3%) 5.50%, 2/15/08 800 806 5.63%, 5/15/08 1,000 1,010 ----------- 1,816 ----------- TOTAL U.S. TREASURY OBLIGATIONS 2,803 ----------- INVESTMENTS IN AFFILIATES (h) (11.0%) Fifth Third Institutional Government Money Market Fund 5,997,222 5,997 ----------- TOTAL INVESTMENTS IN AFFILIATES 5,997 ----------- TOTAL INVESTMENTS (COST $57,704)+ - 103.4% 56,346 LIABILITIES IN EXCESS OF OTHER ASSETS - (3.4)% (1,869) ----------- NET ASSETS - 100.0% $ 54,477 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 106 MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS (100.8%) ARIZONA (6.7%) Arizona State University, 5.00%, 7/1/26, (Callable 7/1/15 @100) $ 1,000 $ 1,039 Greater Arizona Development Authority, 6.00%, 8/1/13, (Callable 8/1/08 @ 102) 1,070 1,134 Mesa Street and Highway Revenue, 5.25%, 7/1/23 600 657 ----------- 2,830 ----------- CALIFORNIA (8.9%) Cal Poly Pomona Foundation, Inc., 5.50%, 2/1/20, (Callable 2/1/11 @ 101) 265 287 La Canada University School District, Series A, GO, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 1,000 1,092 Long Beach Community College District, Series B, GO, 5.00%, 5/1/30 1,000 1,036 Placentia -Yorba Linda Union School District, Series B, GO, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 1,000 1,085 Sacramento County Sanitation Financing Authority, 6.00%, 12/1/15, (Callable 12/1/10 @ 101) 250 271 ----------- 3,771 ----------- COLORADO (5.1%) Denver City & County Airport Revenue, 5.00%, 11/15/08 1,020 1,044 Douglas County School District No.1, GO, 5.75%, 12/15/21, (Callable 12/15/14 @ 100) 1,000 1,110 ----------- 2,154 ----------- FLORIDA (5.1%) Sunrise Utility Systems Revenue, 5.50%, 10/1/18 1,000 1,098 Volusia County School Board, Series A, 5.00%, 8/1/19, (Callable 8/1/15 @ 100) 1,010 1,058 ----------- 2,156 ----------- ILLINOIS (7.8%) Chicago Metropolitan Water Reclamation District-Greater Chicago, Capital Improvements, GO, 7.25%, 12/1/12 500 596 Chicago Single Family Mortgage Revenue, Series A, (AMT), 4.70%, 10/1/17, (Callable 4/1/09 @ 102) 170 172 Development Finance Authority, Elmhurst Community School, 6.38%, 1/1/17, (Prerefunded 1/1/11 @ 100) 1,700 1,877 Finance Authority, 5.00%, 12/1/14, (Callable 12/1/13 @ 100) 300 306 State GO, 5.88%, 10/1/17, (Callable 1/1/09 @ 100) 300 318 ----------- 3,269 ----------- CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED IOWA (5.3%) Finance Authority, Private College Revenue, Drake University Project, 6.50%, 12/1/11 $ 2,055 $ 2,247 ----------- KANSAS (4.3%) Geary County School District, GO, 5.25%, 9/1/17, (Callable 9/1/15 @ 100) 1,675 1,812 ----------- LOUISIANA (2.5%) State Citizens Property Insurance Corp., Series B, 5.00%, 6/1/18, (Callable 6/1/16 @ 100) 1,000 1,056 ----------- MICHIGAN (11.7%) Detroit Water Supply Systems, Series A, 5.00%, 7/1/16 1,000 1,071 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 4.75%, 3/1/09 1,000 1,019 Kent Hospital Financial Authority Revenue, Spectrum Health, Series A, 5.50%, 1/15/13, (Prerefunded 7/15/11 @ 101) 1,000 1,081 State Hospital Finance Authority Revenue, 5.00%, 11/15/20, (Callable 11/15/16 @ 100) 500 515 State Strategic Fund Solidwaste Disposal Revenue, 4.63%, 12/1/12 250 249 Strategic Fund Hope Network Project, Series B, 5.13%, 9/1/13, (Callable 9/1/08 @ 102) 1,000 1,040 ----------- 4,975 ----------- MISSOURI (6.1%) Greene County School District, 6.20%, 3/1/18, (Callable 3/1/10 @ 100) 2,400 2,579 ----------- NEBRASKA (3.8%) Omaha Series A, GO, 6.50%, 12/1/13 1,365 1,591 ----------- NEW MEXICO (2.3%) Mortgage Financial Authority, Single Family Mortgage, (AMT), 5.50%, 7/1/36 900 962 ----------- NEW YORK (2.5%) State Housing Finance Agency, State Personal Income Tax Revenue, 5.00%, 9/15/23, (Callable 9/15/15 @ 100) 1,000 1,045 ----------- CONTINUED 107 MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED OHIO (3.8%) Cuyahoga County, 5.25%, 12/1/18 $ 1,500 $ 1,615 ----------- OKLAHOMA (2.4%) Tulsa International Airport (AMT), 5.50%, 6/1/10 1,000 1,030 ----------- OREGON (2.5%) Sunrise Water Authority Revenue, 5.25%, 3/1/24, (Callable 3/1/14 @ 100) 1,000 1,064 ----------- PENNSYLVANIA (7.5%) Central Dauphin School District, 6.75%, 2/1/24, (Callable 2/1/16 @ 100) 1,000 1,201 Higher Educational Facilities Authority Revenue, Health System, Series A, 5.00%, 8/15/07 500 506 Higher Educational Facilities Authority, Widener University, 3.85%, 7/15/13 430 409 Lancaster Higher Education Authority College Revenue, 5.00%, 4/15/25, (Callable 4/15/16 @ 100) 1,000 1,033 ----------- 3,149 ----------- PUERTO RICO (5.0%) Commonwealth, Refunding Series A, 5.00%, 7/1/30 1,000 1,033 Public Building Authority Revenue, Series I, 5.50%, 7/1/23, (Callable 7/1/14 @ 100) 1,000 1,057 ----------- 2,090 ----------- SOUTH CAROLINA (2.5%) Georgetown County School District, Series B, 5.00%, 3/1/19, (Callable 3/1/12 @ 102) 1,000 1,047 ----------- TENNESSEE (2.5%) Energy Acquisition Corp., Gas Revenue, Series A, 5.00%, 9/1/15 1,000 1,054 ----------- WASHINGTON (2.5%) Metropolitan Park District Tacoma, 5.00%, 12/1/22, (Callable 12/1/15 @ 100) 1,000 1,041 ----------- TOTAL MUNICIPAL BONDS 42,537 ----------- CONTINUED SHARES VALUE ----------- ----------- MONEY MARKETS (0.4%) AIM Tax Free Money Market Fund 106 $ -- # Dreyfus Tax Exempt Money Market Fund 575 1 Goldman Sachs Financial Tax Free Money Market Fund 151,120 150 Merrill Lynch Institutional Tax Exempt Fund 667 1 ----------- TOTAL MONEY MARKETS 152 ----------- TOTAL INVESTMENTS (COST $41,649) + - 101.2% 42,689 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.2)% (520) ----------- NET ASSETS - 100.0% $ 42,169 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 108 INTERMEDIATE MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS (99.3%) ALABAMA (4.4%) Birmingham Baptist Medical Center Special Care Facilities Financing $ 4,000 $ 4,104 Authority, Series A, 5.00%, 11/15/14 Mobile County, Refunding & Improvements Warrants, 5.25%, 8/1/17, (Callable 8/1/14 @ 100) 3,080 3,326 ----------- 7,430 ----------- ALASKA (1.2%) Sport Fishing Revenue, 4.25%, 4/1/15 1,000 1,004 Sport Fishing Revenue, 4.38%, 4/1/16 1,000 1,009 ----------- 2,013 ----------- ARIZONA (4.2%) Mesa Street & Highway Revenue, 6.25%, 7/1/12 1,000 1,126 Mesa Street & Highway Revenue, 6.25%, 7/1/13, (Prerefunded 7/1/11 @ 100) 1,000 1,109 Pinal County Industrial Development Authority Revenue, Correctional Facilities Contract, 5.25%, 10/1/12 220 232 Tempe Performing Arts Center, Excise Tax Revenue, 5.25%, 7/1/17, (Callable 7/1/14 @ 100) 2,000 2,158 Tucson Street & Highway, User Revenue, Junior Lien, Series 1994-E, 6.75%, 7/1/13 2,000 2,341 ----------- 6,966 ----------- ARKANSAS (0.6%) University of Arkansas Revenue, 5.00%, 3/1/16 1,000 1,069 ----------- CALIFORNIA (2.6%) La Canada University School District, Series A, GO, 5.50%, 8/1/24, (Callable 8/1/14 @ 100) 375 410 Orange County, Series A, Refunding Recovery, 6.00%, 6/1/10 3,000 3,248 Placentia -Yorba Linda Union School District, Series B, GO, 5.38%, 8/1/22, (Callable 8/1/14 @ 100) 675 732 ----------- 4,390 ----------- COLORADO (4.9%) El Paso County School District No. 038, GO, 6.38%, 12/1/16, (Prerefunded 12/1/10 @ 100) 1,150 1,269 El Paso County School District No. 038, GO, 6.38%, 12/1/18, (Prerefunded 12/1/10 @ 100) 1,005 1,109 Housing & Finance Authority, Single Family Program, Series C-3, 4.70%, 10/1/22, (Callable 10/1/09 @ 102) 5 5 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED COLORADO, CONTINUED State Department of Corrections Certificate of Participation, 5.00%, 3/1/17, (Callable 3/1/16 @ 100) $ 4,000 $ 4,237 Summitt County School District No. RE1, GO, 5.75%, 12/1/12, (Callable 12/1/11 @ 100) 1,465 1,602 ----------- 8,222 ----------- CONNECTICUT (1.0%) New Haven, Series B, GO, 5.75%, 11/1/09 1,500 1,594 ----------- FLORIDA (0.9%) Sunrise Utility Systems Revenue, 5.50%, 10/1/18 1,425 1,566 ----------- HAWAII (5.2%) Airport Systems Revenue, Series B (AMT), 8.00%, 7/1/10 2,000 2,280 Highway Revenue, 5.50%, 7/1/10 765 811 State Highway Revenue, 5.50%, 7/1/17 5,000 5,578 ----------- 8,669 ----------- ILLINOIS (3.9%) Chicago Metropolitan Water Reclamation District, Capital Improvement, ETM, GO, 5.50%, 12/1/10 3,000 3,205 Development Financial Authority Revenue, DePaul University, Series C, 5.00%, 10/1/06 125 125 Development Financial Authority Revenue, DePaul University, Series C, 5.00%, 10/1/07 200 202 Educational Facilities Authority, Art Institute, 4.13%, 3/1/30 1,000 987 Financial Authority, 4.75%, 12/1/10 200 202 Financial Authority, 5.00%, 12/1/11 250 256 Financial Authority, 5.00%, 12/1/12 275 282 Financial Authority, 5.00%, 12/1/13 275 282 Financial Authority Gas Supply Revenue, Peoples Gas Light & Coke Co., 4.30%, 6/1/35 1,000 991 ----------- 6,532 ----------- INDIANA (5.5%) Fort Wayne International Airport Building Corp. Revenue, (AMT), 5.00%, 7/1/12 1,615 1,679 Fort Wayne International Airport Building Corp. Revenue, (AMT), 5.00%, 7/1/13 1,695 1,765 CONTINUED 109 INTERMEDIATE MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED INDIANA, CONTINUED Municipal Power Supply Agency System Revenue, Series B, 5.88%, 1/1/10 $ 2,000 $ 2,130 Municipal Power Supply Agency System Revenue, Series B, 6.00%, 1/1/13 3,000 3,345 State Financial Authority, Series A, 5.00%, 2/1/15 250 267 ----------- 9,186 ----------- IOWA (0.1%) Iowa State University, Science & Technology Revenue, 3.75%, 7/1/10 140 139 ----------- KENTUCKY (1.8%) Area Development Financing Lease Program, 3.00%, 6/1/09 470 450 Area Development Lease Acquisition Certificate of Participation, 2.70%, 12/1/08 250 239 Area Development Lease Acquisition Certificate of Participation, 3.00%, 12/1/09 255 243 Floyd County Public Properties Corp., 3.00%, 5/1/07, (Callable 10/23/06 @ 100) 475 467 Housing Corp., 3.45%, 1/1/10 275 271 Kenton County Airport Board, 5.00%, 3/1/10 730 753 Munfordville Industrial Development Revenue, 3.10%, 6/1/08 300 294 Munfordville Industrial Development Revenue, Louisville Bedding Co. Project, (AMT), 3.50%, 6/1/09 310 303 ----------- 3,020 ----------- LOUISIANA (0.9%) Public Facilities Authority Revenue, 5.00%, 7/1/16 1,000 1,034 State Citizens Property Insurance Corp., Series B, 5.00%, 6/1/18, (Callable 6/1/16 @ 100) 400 422 ----------- 1,456 ----------- MICHIGAN (23.0%) Brandon School District, GO, 4.00%, 5/1/16 1,430 1,417 Building Authority Revenue, 5.00%, 10/15/29 1,500 1,570 Building Authority Revenue, Police Communications, 5.50%, 10/1/12 350 381 Comprehensive Transportation, 5.50%, 5/15/11 950 1,019 Comprehensive Transportation, 4.00%, 5/15/15 320 319 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Detroit Water Supply Systems, Series A, 5.00%, 7/1/16 $ 500 $ 536 Higher Education Facilites Authority Revenue, Kalamazoo College Project, 5.25%, 12/1/07 765 779 Higher Education Facilities Authority Revenue, Hope College Project, 4.50%, 10/1/07 250 253 Higher Education Facilities Authority Revenue, Hope College Project, 4.80%, 10/1/10, (Callable 10/1/09 @ 100) 590 598 Higher Education Facilities Authority, Hope College Project, 4.70%, 10/1/09 200 204 Higher Education Student Loan Authority Revenue, Series XII-Q, (AMT), 5.05%, 9/1/08 3,885 3,940 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 4.60%, 9/1/08 1,000 1,012 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 5.20%, 9/1/08 4,225 4,310 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 4.75%, 3/1/09 1,800 1,834 Higher Education Student Loan Authority Revenue, Series XVII-I, (AMT), 3.95%, 3/1/11 1,000 977 Hospital Finance Authority, 4.35%, 3/1/09 500 501 Hospital Financial Authority Revenue, Edward W. Sparrow Group, 5.25%, 11/15/08 1,125 1,157 Hospital Financial Authority Revenue, Edward W. Sparrow Hospital, 5.25%, 11/15/09 1,165 1,208 Hospital Financial Authority Revenue, Holland Community Hospital, Series A, 5.00%, 1/1/15, (Callable 1/1/14 @ 100) 505 526 Kent Hospital Financial Authority Revenue, Spectrum Health, Series A, 5.50%, 1/15/13, (Prerefunded 7/15/11 @ 101) 125 135 Kent Hospital Financial Authority Revenue, Spectrum Health, Series B, 5.00%, 7/15/11 2,275 2,362 Kent Hospital Financial Authority, Revenue, Spectrum Health, Series A, 5.25%, 1/15/09 1,075 1,106 CONTINUED 110 INTERMEDIATE MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Montague Public School District, GO, 5.50%, 5/1/12, (Callable 11/1/11 @ 100) $ 1,005 $ 1,081 State Hospital Finance Authority Revenue, Henry Ford Health Systems-A, 5.00%, 11/15/18, (Callable 11/15/16 @100) 500 516 State Hospital Financial Authority Revenue, Marquette General Hospital Obligations Group-A, 5.00%, 5/15/13 1,505 1,539 State Housing Development Authority, Multi-Family Revenue, 4.15%, 4/20/11 320 319 State Housing Development Authority, Multi-Family Revenue, 4.40%, 4/20/13 175 175 State Housing Development Authority, Series A, (AMT), 3.95%, 12/1/12 660 654 State Strategic Fund Solidwaste Disposal Revenue, 4.63%, 12/1/12 750 747 Strategic Fund, Limited Obligation Revenue, Hope Network Project, Series B, 4.80%, 9/1/08 1,000 1,016 Strategic Fund, Limited Obligation Revenue, International Project, 3.00%, 8/1/07 1,415 1,392 Strategic Fund, Limited Obligation Revenue, International Project, 4.75%, 8/1/11 2,240 2,284 Strategic Fund, Limited Obligation Revenue, International Project, 5.00%, 8/1/13 820 849 Trunk Line, Series A, 5.25%, 11/1/13 600 649 Wyandotte Electric Revenue, (AMT), 5.00%, 10/1/13 600 624 Wyandotte Electric Revenue, (AMT), 4.50%, 10/1/14 600 604 ----------- 38,593 ----------- MINNESOTA (2.6%) Housing Finance Agency, 4.55%, 7/1/12, (Callable 7/1/11 @ 100) 1,140 1,144 St. Paul, Housing & Redevelopment Authority Revenue, Smith Avenue Transit Center, 3.50%, 6/1/12, (Callable 6/1/10 @100) 2,000 1,934 State Housing Finance Agency, Residential Housing, (AMT), 3.40%, 7/1/12 1,345 1,276 ----------- 4,354 ----------- MISSISSIPPI (0.8%) University Educational Building Corp. Revenue, Series A, 5.00%, 8/1/18, (Callable 8/1/16 @100) 1,270 1,340 ----------- CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED MISSOURI (1.4%) Brentwood Tax Increment Revenue, Brentwood Square Project, 4.13%, 5/1/11 $ 245 $ 244 Clay County Public School District No. 53, Liberty Direct Deposit Program, GO, 6.25%, 3/1/17, (Callable 3/1/10 @ 100) 2,000 2,152 ----------- 2,396 ----------- NEBRASKA (0.7%) Financial Authority Single Family Housing, Series C, 3.75%, 9/1/11 240 237 Financial Authority Single Family Housing, Series C, 3.85%, 3/1/12 150 148 Investment Financial Authority, Single Family Housing Revenue, Series D, (AMT), 4.10%, 9/1/10 325 319 Investment Financial Authority, Single Family Housing Revenue, Series D, (AMT), 4.25%, 9/1/11 465 462 ----------- 1,166 ----------- NEVADA (1.0%) Clark County, GO, 4.50%, 6/1/17, (Callable 6/1/16 @ 100) 1,325 1,353 Douglas County, Solid Waste Disposal, 3.00%, 12/1/07 100 98 Douglas County, Solid Waste Disposal, 3.50%, 12/1/08 100 99 Douglas County, Solid Waste Disposal, 3.75%, 12/1/09 100 99 ----------- 1,649 ----------- NEW JERSEY (2.3%) State Transportation Fund Authority, Series A, 5.25%, 12/15/19 1,000 1,088 Turnpike Authority Revenue, Series A, 6.00%, 1/1/13 575 643 Turnpike Authority Revenue, Series A, ETM, 6.00%, 1/1/13 1,925 2,155 ----------- 3,886 ----------- NEW MEXICO (3.4%) Mortgage Finance Authority, Series A2, Class I, (AMT), 3.90%, 1/1/19, (Callable 1/1/16 @ 100) 1,250 1,248 Mortgage Finance Authority, Series A2, Class I, (AMT), 4.40%, 1/1/27, (Callable 1/1/16 @ 100) 2,000 1,991 Mortgage Financial Authority, Single Family Mortgage, (AMT), 4.05%, 7/1/26 930 926 Mortgage Financial Authority, Single Family Mortgage, (AMT), 5.50%, 7/1/36 960 1,026 CONTINUED 111 INTERMEDIATE MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED NEW MEXICO , CONTINUED Taos County Gross Receipts Tax Revenue, County Educational Improvements, 3.88%, 10/1/11 $ 565 $ 528 ----------- 5,719 ----------- NEW YORK (0.6%) Utica Industrial Development Agency Civic Facility, 4.50%, 10/1/34 1,000 1,014 ----------- NORTH DAKOTA (0.2%) Department of Transportation, Grant & Revenue Anticipation Bonds, 3.50%, 6/1/12 395 384 ----------- OHIO (2.6%) Cuyahoga County, 5.25%, 12/1/18 915 985 Economic Development Revenue, (AMT), 4.08%, 6/1/13 500 493 Housing Financial Agency Mortgage Revenue, (AMT), 3.55%, 3/1/10 1,000 980 Housing Financial Agency Mortgage Revenue, (AMT), 3.70%, 3/1/11 1,000 983 Housing Financial Agency Mortgage Revenue, (AMT), 4.00%, 3/1/14 500 492 Summit County, GO, 6.00%, 12/1/09 400 426 ----------- 4,359 ----------- OKLAHOMA (0.4%) Housing Finance Agency, Single Family Revenue, 4.25%, 9/1/25, (Callable 9/1/15 @ 100) 600 598 ----------- OREGON (4.3%) Clackamas County School District, GO, 5.00%, 6/15/16 5,020 5,317 State Department Transportation Highway Usertax, Series A, 5.25%, 11/15/16, (Callable 11/15/14 @ 100) 1,775 1,918 ----------- 7,235 ----------- PENNSYLVANIA (1.8%) Higher Educational Facilities Authority, Widener University, 3.60%, 7/15/11 250 238 Higher Educational Facilities Authority, Widener University, 3.75%, 7/15/12 405 385 Housing Finance Agency, 4.50%, 10/1/09 1,195 1,210 Lehigh Northampton Airport (AMT), 5.00%, 1/1/19, (Callable 1/1/15 @ 100) 1,175 1,209 ----------- 3,042 ----------- CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED PUERTO RICO (2.2%) Commonwealth Government Development, (AMT), 5.25%, 1/1/15 $ 1,500 $ 1,563 Commonwealth, Refunding Series A, 5.00%, 7/1/30 2,000 2,066 ----------- 3,629 ----------- RHODE ISLAND (1.6%) Depositors Economic Protection Corp., Series A, ETM, 5.88%, 8/1/11 2,535 2,751 ----------- SOUTH CAROLINA (0.6%) Anderson County School District No. 002, Series B, GO, 6.00%, 3/1/13, (Callable 3/1/10 @ 101) 890 962 ----------- TENNESSEE (3.5%) Energy Acquisition Corp., Gas Revenue, Series A, 5.00%, 9/1/15 2,000 2,107 Housing Development Agency, Series A, 4.00%, 7/1/10 1,100 1,094 Metropolitan Nashville Airport Authority Revenue, (AMT), 5.38%, 7/1/14, (Callable 7/1/08 @ 102) 2,570 2,677 ----------- 5,878 ----------- TEXAS (2.3%) Dallas Fort Worth International Airport Revenue, 5.00%, 11/1/15, (Callable 11/1/09 @ 100) 2,000 2,045 Hidalgo County Health Services, Mission Hospital, Inc. Project, 4.00%, 8/15/06 250 250 Municipal Power Agency Revenue, 4.00%, 9/1/12 500 500 State Transportation Community-Mobility Fund, GO, 5.00%, 4/1/19, (Callable 4/1/16 @ 100) 1,000 1,053 ----------- 3,848 ----------- UTAH (0.3%) Housing Corp., Single Family Mortgage Revenue, Series A, Class I, (AMT), 2.35%, 7/1/07 500 490 ----------- VIRGINIA (1.3%) Richmond, GO, 5.38%, 7/15/13, (Prerefunded 7/15/11 @ 101) 2,000 2,158 ----------- CONTINUED 112 INTERMEDIATE MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED WASHINGTON (5.2%) Energy Northwest Electric Revenue, 5.50%, 7/1/15 $ 3,190 $ 3,511 Grant County Public Utility District No. 002, Electric Revenue, 5.00%, 1/1/11 2,485 2,599 King County School District No. 415, Kent, Series A, GO, 5.55%, 12/1/11 2,000 2,152 Yakima County, GO, 5.25%, 12/1/16, (Callable 12/1/12 @ 100) 425 451 ----------- 8,713 ----------- TOTAL MUNICIPAL BONDS 166,416 ----------- MONEY MARKETS (0.1%) AIM Tax Free Money Market Fund 105 -- # Dreyfus Tax Exempt Money Market Fund 311 -- # Goldman Sachs Financial Tax Free Money Market Fund 166,095 167 Merrill Lynch Institutional Tax Exempt Fund 328 -- # TOTAL MONEY MARKETS 167 ----------- TOTAL INVESTMENTS (COST $164,040)+ - 99.4% 166,583 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.6% 1,051 ----------- NET ASSETS - 100.0% $ 167,634 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. OHIO MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS (98.5%) MICHIGAN (1.8%) State Comprehensive Transportation, 4.00%, 5/15/14 $ 2,000 $ 2,003 ----------- OHIO (91.1%) Akron Bath Copley Joint Township Hospital District, Summa Health System Revenue, Series A, 5.25%, 11/15/16, (Callable 11/15/14 @ 100) 1,000 1,050 American Municipal Power - Ohio, Inc., 5.25%, 1/1/11 1,825 1,931 Beavercreek Local School District, 6.60%, 12/1/15 1,500 1,740 Berea, GO, 5.13%, 12/1/13 1,080 1,111 Building Authority, 5.25%, 10/1/10, (Callable 4/1/09 @ 101) 2,410 2,521 Butler County Hospital Facilities Revenue, 4.75%, 11/15/18 820 845 Butler County Hospital Facilities Revenue, 4.75%, 11/15/18, (Callable 11/15/08 @ 101) 1,180 1,155 Cincinnati City School District, Classroom Facilities Construction & Improvements, 5.25%, 12/1/14, (Callable 12/1/13 @ 100) 3,000 3,242 Cleveland Public Power System Revenue, 5.25%, 11/15/16, (Callable 11/15/06 @ 102) 4,900 5,018 Cleveland, GO, 5.25%, 12/1/17 1,125 1,215 Cleveland, Non Tax Revenue, Cleveland Stadium Project, 5.00%, 12/1/15 1,225 1,302 Cuyahoga County, 5.25%, 12/1/18 2,000 2,153 Cuyahoga County Hospital Revenue, 5.50%, 2/15/09 1,245 1,292 Cuyahoga County Jail Facilities, GO, 5.25%, 10/1/13 3,000 3,243 Dayton-Montgomery County Port Authority, (AMT), 4.75%, 11/15/15 695 699 Dayton-Montgomery County Port Authority, Development-Parking Garage Project, Series A, 5.00%, 11/15/17 1,000 1,004 Economic Development Revenue, 3.50%, 12/1/07 210 206 Economic Development Revenue, 4.40%, 12/1/12 815 812 Erie County Hospital Facilities Revenue, 5.00%, 8/15/08 400 404 Erie County Hospital Facilities Revenue, 5.50%, 8/15/12 250 262 Franklin County Development Revenue, 5.50%, 10/1/12, (Callable 10/1/09 @ 101) 2,270 2,381 Franklin County, Online Computer Library Center, 5.00%, 4/15/10 2,270 2,325 CONTINUED 113 OHIO MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED OHIO, CONTINUED Franklin County, Trinity Health, 5.00%, 6/1/13 $ 475 $ 496 Hamilton County Hospital Facilities Revenue, Cincinnati Children's Hospital, Series J, 4.50%, 5/15/14 1,510 1,553 Higher Education, Case Western Reserve, 6.25%, 7/1/14 6,500 7,427 Higher Education, Dennison University Project, 5.50%, 11/1/12, (Callable 11/1/11@ 101) 1,000 1,081 Higher Education, John Carroll University, 5.25%, 11/15/14, (Callable 11/15/13 @ 100) 1,435 1,522 Higher Education, John Carroll University, 5.25%, 11/15/15, (Callable 11/15/13 @ 100) 1,490 1,575 Higher Educational Facilities Revenue, Ohio Northern University Project, 3.50%, 5/1/10 475 461 Higher Educational Facilities Revenue, Ohio Northern University Project, 3.88%, 5/1/13 645 626 Housing Authority, 4.63%, 9/1/31, (Callable 1/1/11 @ 100) 1,240 1,242 Housing Finance Agency, (AMT), 3.95%, 9/1/08 305 305 Housing Finance Agency, (AMT), 4.15%, 9/1/09 525 518 Housing Finance Agency, (AMT), 4.35%, 9/1/10 200 198 Housing Finance Agency, (AMT), 3.65%, 9/1/11 705 676 Housing Finance Agency, (AMT), 4.55%, 9/1/11 200 200 Housing Finance Agency, (AMT), 3.30%, 9/1/30 1,035 1,021 Housing Finance Agency, Mortgage Revenue, (AMT), 3.90%, 3/1/13 1,000 986 Knox County Hospital Facilities Revenue, 4.70%, 6/1/08 1,150 1,162 Knox County Hospital Facilities Revenue, 5.00%, 6/1/12 6,250 6,486 Lucas County, 6.65%, 12/1/12 130 131 Mental Health Capital Facilities, Series II-A, 5.00%, 6/1/13 2,135 2,259 Miami County Hospital Facility, 5.25%, 5/15/15 500 523 Montgomery County Catholic Health Initiatives, Series A, 6.00%, 12/1/26 2,750 2,959 Municipal Electric Generation Agency, Refunding, Joint Venture, 5-CTFS Ben Int, 5.00%, 2/15/14 2,675 2,847 North Olmstead, 6.20%, 12/1/11 3,000 3,229 Ohio State Higher Education Facilities Revenue, 5.00%, 5/1/16 2,010 2,136 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED OHIO, CONTINUED Ohio State Higher Education Facilities Revenue, 5.00%, 5/1/19 $ 3,115 $ 3,267 Ohio State Higher Education, Series A, 4.25%, 5/1/16 2,310 2,339 Ohio State Univeristy General Reciepts, Series B, 5.25%, 6/1/18 5,880 6,264 State Higher Education Facility Revenue, John Carroll University, 4.00%, 11/15/09 500 501 State Higher Educational Facility, Mount Union College Project, 4.75%, 10/1/15 385 402 State Higher Educational Facility, Mount Union College Project, 4.75%, 10/1/16 300 313 State Higher Educational Facility, Mount Union College Project, 5.25%, 10/1/21, (Callable 10/1/16 @ 100) 980 1,035 State Mental Health Facilities, 4.13%, 6/1/15 1,600 1,604 State Schools, 5.00%, 6/15/13 1,000 1,067 State Solid Waste Revenue, Ohio Water Development Authority, (AMT), 4.85%, 11/1/22 3,000 3,017 State Solid Waste Revenue, Republic Services Project, (AMT), 4.25%, 4/1/33 3,470 3,355 Toledo-Lucas County, Port Authority Special Assessment Revenue, Crocker Park Public Improvement Project, 5.00%, 12/1/09 1,110 1,122 Toledo-Lucas County, Port Authority Special Assessment Revenue, Crocker Park Public Improvements Project, 5.00%, 12/1/08 1,155 1,170 University of Cincinnati, 5.00%, 6/1/10 300 313 ----------- 103,299 ----------- PUERTO RICO (2.7%) Commonwealth, Refunding Series A, 5.00%, 7/1/30 3,000 3,099 ----------- WASHINGTON (2.9%) Energy Northwest Electric Revenue, 5.50%, 7/1/15 3,000 3,301 ----------- TOTAL MUNICIPAL BONDS 111,702 ----------- MONEY MARKETS (2.2%) Goldman Sachs Financial Tax Free Money Market Fund 2,532,341 2,532 ----------- TOTAL MONEY MARKETS 2,532 ----------- TOTAL INVESTMENTS (COST $112,932)+ - 100.7% 114,234 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.7)% (840) ----------- NET ASSETS - 100.0% $ 113,394 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 114 MICHIGAN MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS (100.6%) MICHIGAN (97.9%) Ann Arbor Water Supply Systems, 5.00%, 2/1/10 $ 880 $ 915 Avondale School District, UTGO, 5.00%, 5/1/10 800 832 Birmingham City School District, 5.00%, 11/1/10 1,905 1,991 Building Authority Revenue, 5.00%, 10/15/29 1,000 1,046 Certificate of Participation, Series A, 5.00%, 9/1/31 2,000 2,084 Clarkston Community Schools, 5.25%, 5/1/29 1,000 1,081 Clarkston Schools, 4.00%, 5/1/12 200 201 Coldwater Electric Utility Revenue, 4.50%, 8/1/11 515 525 Coldwater Electric Utility Revenue, 4.50%, 8/1/13 570 582 Comprehensive Transportation, Series A, 5.25%, 5/15/09 1,000 1,039 Detroit Convention Facilities, 5.00%, 9/30/08 2,000 2,048 Detroit Water Supply Systems, Series A, 5.00%, 7/1/15 1,000 1,071 Grand Rapids & Kent County Joint Building Authority, GO, 5.50%, 10/1/09 605 636 Grand Rapids & Kent County Joint Building Authority, UTGO, 5.50%, 10/1/07 535 546 Higher Education Facilities Authority Revenue, Hope College Project, 4.60%, 10/1/08 320 325 Higher Education Facilities Authority Revenue, Kalamazoo College Project, 5.25%, 12/1/06 725 729 Higher Education Facilities Authority, Thomas M. Cooley Law School, 4.75%, 5/1/07 1,265 1,270 Higher Education Student Loan Authority Revenue, (AMT), 5.00%, 3/1/07 2,525 2,535 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 4.60%, 9/1/08 1,000 1,012 Higher Education Student Loan Authority Revenue, Series XII-W, (AMT), 4.75%, 3/1/09 200 204 Higher Education Student Loan Authority Revenue, Series XVII-I (AMT), 3.65%, 3/1/10 1,000 978 Hospital Financial Authority Revenue, Hospital Crittenton, Series A, 3.85%, 3/1/07 200 199 CONTINUED PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Hospital Financial Authority Revenue, Hospital Crittenton, Series A, 4.15%, 3/1/08 $ 300 $ 301 Hospital Financial Authority Revenue, McLaren Health Care, Series C, 4.00%, 8/1/08 405 406 Hospital Financial Authority Revenue, Sparrow Obligation Group, 5.00%, 11/15/06 735 736 Housing Development Authority, (AMT), Series B, 3.55%, 12/1/06 175 175 Housing Development Authority, (AMT), Series B, 3.85%, 12/1/07 215 213 Housing Development Authority, (AMT), Series B, 4.13%, 12/1/08 305 304 Housing Development Authority, (AMT), Series B, 4.35%, 12/1/09 355 356 Housing Development Authority, (AMT), Series B, 4.55%, 12/1/10 455 460 Housing Development Authority, (AMT), Series B, 4.65%, 12/1/11 485 493 Housing Development Authority, Parkway Meadows Project, 3.50%, 10/15/08 930 919 Housing Development Authority, Parkway Meadows Project, 3.50%, 10/15/09 710 710 Kalamazoo Hospital Finance Authority Revenue, Bronson Methodist Hospital, 5.50%, 5/15/08 750 771 Kalamazoo Hospital Finance Authority Revenue, Bronson Methodist Hospital, 5.00%, 10/15/08 500 512 Kent, Hospital Financial Authority Revenue, Spectrum Health, Series B, 5.00%, 7/15/11 600 623 Kent, Hospital Financial Authority Revenue, Spectrum Health, 5.25%, 1/15/08 430 438 Mount Clemens Community School District, 5.50%, 5/1/12 1,075 1,162 Municipal Building Authority Revenue, Government Loan Program, Series C, 5.00%, 5/1/10 1,000 1,042 Muskegon County, Wastewater Management System, No. 1, (AMT), 5.00%, 7/1/08 1,000 1,020 Novi Community School District, Building & Site Improvements, 5.00%, 10/1/08 2,320 2,378 South Macomb Disposal Authority Revenue, 5.00%, 9/1/08 1,115 1,142 CONTINUED 115 MICHIGAN MUNICIPAL BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT SHARES) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED State Hospital Finance Authority Revenue, 5.00%, 11/15/14 $ 250 $ 262 State Hospital Finance Authority Revenue, Holland Community Hospital, 4.15%, 1/1/12 450 448 State Hospital Finance Authority Revenue, General Hospital Obligations Group, 5.00%, 5/15/10 905 927 State Housing Development Authority, Multi-Family Revenue, 3.55%, 4/20/08 395 394 State Strategic Fund Solidwaste Disposal Revenue, 4.63%, 12/1/12 250 249 Strategic Fund, Hope Network Project, Series B, 4.75%, 9/1/07 615 619 Strategic Fund, Limited Obligation Revenue, Consumers Energy Company Project, 3.38%, 6/15/10 2,000 1,937 Strategic Fund, Limited Obligation Revenue, Henry Ford Museum Village Project, 3.68%, 12/1/33 (d) 1,680 1,680 University of Michigan Hospital Revenue, 5.00%, 12/1/08 2,000 2,048 University of Michigan Hospital Revenue, 5.00%, 12/1/09 510 528 University of Michigan Hospital Revenue, 3.67%, 12/1/35 (d) 900 900 University of Michigan, Medical Service Plan, Series A-1, 3.65%, 12/1/21 (d) 175 175 University of Michigan, Series A-2, 3.65%, 12/1/24 (d) 400 400 Warren Building Authority, 3.70%, 11/1/09 225 223 Wayne Charter County, Airport Revenue, Detroit Metro County, Series D, (AMT), 5.25%, 12/1/06 2,000 2,009 Wayne County Airport Authority, 5.00%, 12/1/09 1,000 1,029 Wayne County Community College, 5.25%, 7/1/09 1,000 1,040 Wayne-Westland Community Schools, 5.00%, 5/1/10 1,000 1,041 Wyandotte City School District, 4.00%, 5/1/13 810 814 Wyandotte, Electric Revenue, (AMT), 4.50%, 10/1/11 600 608 Wyandotte, Electric Revenue, (AMT), 5.00%, 10/1/12 600 623 Zeeland, Water System Revenue, (AMT), 4.00%, 10/1/06 245 245 Zeeland, Water System Revenue, (AMT), 4.00%, 10/1/07 255 254 CONTINUED SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- MUNICIPAL BONDS, CONTINUED MICHIGAN, CONTINUED Zeeland, Water System Revenue, (AMT), 4.00%, 10/1/08 $ 270 $ 269 Zeeland, Water System Revenue, (AMT), 4.00%, 10/1/09 280 275 ----------- 55,007 ----------- PUERTO RICO (2.7%) Commonwealth Government Development, (AMT), 5.25%, 1/1/15 500 521 Public Buildings Authority Revenue, Refunding, Government Facilities, Series K, 4.50%, 7/1/22 1,000 1,004 ----------- 1,525 ----------- TOTAL MUNICIPAL BONDS 56,532 ----------- MONEY MARKETS (0.1%) AIM Tax Free Money Market Fund 174 -- # Dreyfus Tax Exempt Money Market Fund 103 -- # Goldman Sachs Financial Tax Free Money Market Fund 69,794 70 Merrill Lynch Institutional Tax Exempt Fund 1,772 2 ----------- TOTAL MONEY MARKETS 72 ----------- TOTAL INVESTMENTS (COST $57,108)+ - 100.7% 56,604 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.7)% (400) ----------- NET ASSETS - 100.0% $ 56,204 =========== SEE NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 116 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS JULY 31, 2006 (AMOUNTS IN THOUSANDS) -------------------------------------------------------------------------------- * Non-income producing security. ** Rate represents the effective yield at purchase. # Market value is less than five hundred dollars. + Represents cost for financial reporting purposes. (a) Part of this security has been designated as initial margin on open futures contracts. (b) Affiliate. (c) Dollar value included in the security description indicated represents expected per share annual dividend. (d) Variable rate security. Rate presented represents rate in effect at July 31, 2006. Maturity date represents actual maturity date. (e) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Funds advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (f) All or part of this security has been designated as collateral for TBA security. (g) All or part of this security was on loan at July 31, 2006. (h) Investment is in Institutional Shares of underlying fund. (i) Common Stock. (j) Security was fair valued at July 31, 2006 using procedures approved by the Board of Trustees. The following abbreviations are used in these Schedules of Portfolio Investments: ADR - American Depositary Receipt AMT - Alternative Minimum Tax Paper CBTCS - Convertible Bond Transferable Custodial Security ETM - Escrowed to Maturity GDR - Global Depositary Receipts GO - General Obligation SPDR - Standard & Poor's Depositary Receipt TBA - To Be Announced TRAINS - Targeted Return Index Security UTGO - Unlimited Tax General Obligation W/I - When Issued
COST OF NET INVESTMENTS FOR GROSS GROSS UNREALIZED FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/ FIFTH THIRD FUNDS PURPOSES APPRECIATION DEPRECIATION (DEPRECIATION) --------------- ------------ ------------ -------------- Small Cap Growth Fund $173,216 $ 34,057 $ (6,358) $ 27,699 Mid Cap Growth Fund 415,843 71,310 (9,830) 61,480 Quality Growth Fund 873,904 84,224 (33,903) 50,321 Large Cap Core Fund 190,833 21,480 (4,760) 16,720 Equity Index Fund 233,129 229,542 (15,798) 213,744 Balanced Fund 90,987 3,104 (2,475) 629 Micro Cap Value Fund 126,713 23,166 (8,378) 14,788 Small Cap Value Fund 146,817 10,770 (5,234) 5,536 Multi Cap Value Fund 309,022 76,602 (5,736) 70,866 Disciplined Large Cap Value Fund 596,439 108,847 (16,949) 91,898 LifeModel Aggressive Fund 149,800 24,854 (1,044) 23,810 LifeModel Moderately Aggressive Fund 289,216 42,472 (3,145) 39,327 LifeModel Moderate Fund 491,798 38,674 (9,780) 28,894 LifeModel Moderately Conservative Fund 97,756 9,491 (2,365) 7,126 LifeModel Conservative Fund 54,455 2,124 (1,804) 320 Strategic Income Fund 157,548 7,964 (5,247) 2,717 Dividend Growth Fund 21,518 1,484 (471) 1,013 Technology Fund 73,326 1,895 (2,758) (863) International Equity Fund 427,657 102,151 (37,255) 64,896 High Yield Bond Fund 72,362 206 (2,210) (2,004) Bond Fund 318,952 1,134 (5,833) (4,699) Intermediate Bond Fund 499,050 643 (7,653) (7,010) Short Term Bond Fund 317,750 (1,113) (4,709) (5,822) U.S. Government Bond Fund 57,333 482 (1,469) (987) Municipal Bond Fund 41,625 1,081 (17) 1,064 Intermediate Municipal Bond Fund 164,029 3,470 (916) 2,554 Ohio Municipal Bond Fund 112,757 2,058 (581) 1,477 Michigan Municipal Bond Fund 57,092 161 (649) (488)
SEE NOTES TO FINANCIAL STATEMENTS 117 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- Open futures contracts as of July 31, 2006 (Amounts in thousands, except contract amount):
UNREALIZED NUMBER OF NOTIONAL APPRECIATION/ MARKET CONTRACTS CONTRACT TYPE AMOUNT (DEPRECIATION) VALUE --------- ----------------------------- -------- -------------- -------- Large Cap Core Fund 16 Standard & Poors 500, 9/14/06 $ 5,095 $ 32 $ 5,127 ==== ======== ====== ======== Equity Index Fund 41 Standard & Poors 500, 9/14/06 12,939 199 13,138 ==== ======== ====== ======== International Equity Fund 72 CAC 40, 9/15/06 4,436 189 4,625 7 DAX, 9/15/06 1,206 69 1,275 (90) DJ, 9/15/06 (4,109) (138) (4,247) 34 NIKKEI 225, 9/7/06 4,587 (16) 4,571 70 TOPIX, 9/7/06 9,351 239 9,590 82 FTSE, 9/21/06 2,007 262 2,269 43 HANG SENG, 8/30/06 4,687 10 4,697 ---- -------- ------ -------- 218 $ 22,165 $ 615 $ 22,780 ==== ======== ====== ========
The table below reflects the Fund's activities in written options, all of which were for purposes of earning additional income during the period. No other Funds engaged in written option contracts during the year needed July 31, 2006. BALANCE AT OPTIONS OPTIONS BALANCE AT NUMBER OF CONTRACTS JULY 31, 2005 WRITTEN EXPIRED JULY 31, 2006 ----------------- ------- ---------- ------------- Balanced 34 -- (34) -- Dividend Growth -- 40 (40) -- PREMIUMS Balanced $ 8 $-- $ (8) $-- Dividend Growth -- 7 (7) -- As of July 31, 2006, the following Funds had securities on loan with the following market values and collateral amounts:
MARKET OPEN VALUE OF AVERAGE CASH COLLATERAL LOANED LOAN COLLATERAL COMMITMENTS SECURITIES OUTSTANDING* ---------- ----------- ---------- ------------ Small Cap Growth Fund $ 53,720 $ 36 $ 52,019 $ 49,922 Mid Cap Growth Fund 105,117 267 101,984 89,713 Quality Growth Fund 152,650 (265) 147,451 143,865 Large Cap Core Fund 19,054 (57) 18,381 17,451 Equity Index Fund 38,883 (203) 37,422 44,837 Balanced Fund 6,463 40 6,294 7,643 Micro Cap Value Fund 23,113 (40) 22,325 17,435 Small Cap Value Fund 30,712 23 29,742 24,762 Multi Cap Value Fund 52,482 (94) 50,691 47,368 Disciplined Large Cap Value Fund 76,631 (996) 73,157 77,894 Strategic Income Fund 6,581 (7) 6,360 8,025 Dividend Growth Fund 862 (7) 827 1,055 Technology Fund 16,640 17 16,119 16,515 International Equity Fund 28,616 (114) 27,576 26,856 High Yield Bond Fund 5,202 6 5,039 3,330 Bond Fund 745 2 723 8,156 Intermediate Bond Fund 21,265 26 20,603 16,934 Short Term Bond Fund 42,583 (53) 41,152 24,643
__________________________ * For the periods when securities lending was utilized. SEE NOTES TO FINANCIAL STATEMENTS 118 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- The cash collateral received by the Fifth Third Funds at July 31, 2006, was pooled and invested in the following:
SECURITY TYPE SECURITY NAME VALUE RATE MATURITY DATE ---------------------- ------------------------------ -------- ----- ------------- Certificate of Deposit Bayersiche Landesbank NY $ 25,000 5.45% 7/24/07 Floating Rate Security AISF Global Finance 10,002 5.38% 12/11/06 Floating Rate Security American Express 35,000 5.35% 7/20/07 Floating Rate Security Bank of America 30,008 5.76% 8/22/06 Floating Rate Security Bank of New York Co., Inc. 40,000 5.34% 7/11/07 Floating Rate Security BNP Paribas 15,000 5.14% 5/18/07 Floating Rate Security Canadian Imperial Bank NY 20,000 5.38% 7/25/07 Floating Rate Security Florida Heart Group 8,705 5.40% 4/1/14 Floating Rate Security General Electric Capital Corp. 7,704 5.45% 8/9/07 Floating Rate Security General Electric Capital Corp. 25,006 5.41% 12/8/06 Floating Rate Security Goldman Sachs Group, Inc. 27,000 5.40% 1/12/07 Floating Rate Security Guiding Light Church 10,700 5.40% 3/1/25 Floating Rate Security HSBC Finance Corp. 35,000 5.43% 7/24/07 Floating Rate Security IBM Corp. 35,000 5.34% 8/9/07 Floating Rate Security Lehman 10,006 5.37% 5/31/07 Floating Rate Security Lehman 15,000 5.20% 6/26/07 Floating Rate Security Merrill Lynch 30,000 5.36% 5/29/07 Floating Rate Security Metlife Global 30,018 5.41% 3/16/07 Floating Rate Security Morgan Stanley 10,000 5.37% 8/6/07 Floating Rate Security Morgan Stanley 5,000 5.37% 8/6/07 Floating Rate Security Morgan Stanley 25,000 5.39% 8/6/07 Floating Rate Security National Australia Bank 25,000 5.31% 8/9/07 Floating Rate Security National City Bank 30,002 5.46% 4/4/07 Floating Rate Security Toyota 30,016 5.56% 10/16/06 Repurchase Agreement Barclays Capital Markets 47,152 5.28% 8/1/06 Repurchase Agreement Deutsche Bank Securities, Inc. 100,000 5.27% 8/1/06
SEE NOTES TO FINANCIAL STATEMENTS 119 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- International Equity Fund Foreign Currency Contracts as of July 31, 2006:
CONTRACT CONTRACT CURRENT UNREALIZED DELIVERY AMOUNT (LOCAL VALUE U.S. VALUE APPRECIATION/ DATE CURRENCY) DOLLAR U.S. DOLLAR (DEPRECIATION) ---------------------- ------------- ---------- ----------- -------------- BRITISH POUND STERLING -------------------------------------- Short Contracts 8/17/06 2,604 $ 4,932 $ 4,866 $ 66 8/17/06 951 1,755 1,777 (22) Long Contracts 8/17/06 4,806 9,125 8,981 (144) 8/17/06 1,955 3,708 3,654 (54) EURO -------------------------------------- Short Contracts 9/14/06 2,357 2,983 3,019 (36) 9/14/06 1,570 1,988 2,011 (23) Long Contacts 8/17/06 10,796 13,926 13,806 (120) 8/17/06 8,020 10,433 10,256 (177) 9/14/06 1,961 2,481 2,512 31 9/14/06 833 1,054 1,067 13 9/14/06 3,543 4,493 4,539 46 HONG KONG DOLLAR -------------------------------------- Short Contracts 8/17/06 40,714 5,259 5,244 15 Long Contracts 8/17/06 3,333 430 429 (1) JAPANESE YEN -------------------------------------- Short Contracts 8/17/06 1,282,753 11,882 11,220 662 8/17/06 945,086 8,731 8,267 464 8/17/06 62,442 578 546 32 8/17/06 129,838 1,175 1,136 39 8/17/06 1,086,279 9,813 9,502 311 9/14/06 1,066,989 9,433 9,370 63 9/14/06 1,547,623 13,667 13,591 76 9/14/06 602,397 5,323 5,290 33 Long Contracts 8/17/06 1,469,343 13,614 12,853 (761) 9/14/06 1,352,172 11,944 11,875 (69) 9/14/06 611,136 5,399 5,367 (32) 9/14/06 1,188,572 10,504 10,438 (66) 9/14/06 80,099 707 703 (4) SOUTH AFRICAN RAND -------------------------------------- Long Contracts 9/14/06 11,100 1,614 1,595 (19) 9/14/06 2,467 359 354 (5)
SEE NOTES TO FINANCIAL STATEMENTS 120 This page intentionally left blank. 121 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- The investment concentrations for the Equity Funds as a percentage of net assets, by industry, as of July 31, 2006, were as follows:
SMALL CAP MID CAP QUALITY LARGE CAP EQUITY MICRO CAP SMALL CAP MULTI CAP GROWTH GROWTH GROWTH CORE INDEX VALUE VALUE VALUE FUND FUND FUND FUND FUND FUND FUND FUND --------- ------- ------- --------- ------ --------- --------- --------- Advertising 1.0% -- -- -- 0.2% 1.1% -- -- Aerospace/Defense -- -- -- 3.5% 2.1% -- -- 1.4% Agriculture -- -- -- 1.3% 1.8% -- -- 0.4% Airlines -- -- -- --^ 0.1% 0.3% -- -- Apparel 1.2% 4.5% 1.9% 0.6% 0.3% 4.6% 1.6% 0.4% Auto Manufacturers -- -- -- -- 0.4% -- -- 0.7% Auto Parts & Equipment 1.1% -- -- 0.5% 0.1% -- -- 1.3% Banks 1.6% 1.7% 4.5% 6.4% 6.8% 4.5% 9.5% 9.7% Beverages -- -- 1.7% 1.7% 2.2% -- 2.2% 0.9% Biotechnology 1.2% -- 3.1% 0.7% 1.0% -- -- -- Building Materials 1.0% -- -- 0.7% 0.2% 1.9% -- 0.5% Cash Equivalents 36.5% 29.1% 20.4% 10.1% 9.5% 19.4% 25.1% 16.2% Chemicals -- -- 1.0% 2.3% 1.2% 1.5% 6.7% 3.7% Closed-end Funds -- -- -- -- -- -- -- -- Coal -- -- 1.0% -- -- -- -- -- Commercial Services 5.1% 7.7% 6.4% 0.4% 0.6% 3.8% 5.7% 0.6% Computers 4.2% 4.3% 2.8% 4.9% 3.6% 4.2% 4.0% 0.9% Cosmetics/Personal Care -- -- 3.1% 1.1% 2.2% -- -- -- Distribution/Wholesale 4.5% 2.4% -- -- 0.1% -- -- -- Diversified Financial Services 1.0% 5.0% 3.4% 9.8% 8.0% -- 1.0% 6.4% Electric -- -- -- 3.4% 3.3% -- 4.1% 5.6% Electrical Components & Equipment 5.5% -- -- 0.9% 0.3% 1.2% 2.7% -- Electronics 0.8% 2.7% -- 0.8% 0.5% 3.1% 1.4% 1.2% Engineering & Construction 1.6% -- -- -- 0.1% 0.6% -- -- Entertainment 1.1% 1.7% -- -- 0.1% 0.4% -- -- Environmental Control -- 1.2% 1.0% 0.4% 0.2% 1.3% -- -- Food 1.5% -- 1.0% 2.4% 1.7% 3.0% 3.0% 7.3% Food Service -- -- -- -- -- -- -- -- Forest Products & Paper -- -- -- 0.8% 0.4% -- 3.2% -- Gas -- -- -- -- 0.2% 0.9% 2.6% -- Hand/Machine Tools -- -- -- -- 0.1% -- -- 1.4% Healthcare-Products 7.7% 8.1% 3.4% 1.5% 3.2% 3.8% 1.0% 1.0% Healthcare-Services 2.3% 4.1% 2.0% 1.1% 1.7% 2.6% 4.1% 2.1% Holding Companies-Diversified -- -- -- -- -- -- -- -- Home Builders -- 0.7% -- -- 0.2% -- -- -- Home Furnishings -- -- -- -- 0.1% 1.6% 2.2% --^ Household Products/Wares 1.3% -- -- -- 0.2% 1.6% -- 0.7% Housewares -- -- -- -- 0.1% -- -- -- Insurance 2.5% 1.4% 2.1% 4.2% 4.7% 5.6% 3.6% 6.4% Internet 1.4% -- 0.7% 0.7% 1.5% 4.7% -- 0.2% Investment Companies 9.1% 8.4% 3.4% 2.6% 3.2% 8.3% 2.8% 2.9% Iron/Steel 1.6% 1.9% -- 0.4% 0.3% 1.5% -- -- Leisure Time -- -- -- -- 0.3% 0.7% -- 0.3% Lodging -- 4.9% 3.6% -- 0.4% -- -- -- Machinery-Construction & Mining 2.3% 2.9% -- -- 0.4% -- -- -- Machinery-Diversified 1.5% 1.4% 3.0% 0.1% 0.4% -- 2.6% 1.2% Media -- -- 2.1% 4.2% 3.1% -- 1.1% 1.7% Metal Fabricate/Hardware -- 1.9% -- -- -- 1.5% -- -- Mining -- -- -- 0.2% 0.6% 1.0% -- 1.0% Miscellaneous Manufacturing -- 2.3% 4.8% 6.0% 4.9% 0.7% -- 4.4% Office/Business Equipment -- -- -- 0.2% 0.2% -- -- 0.3% Oil & Gas 3.2% 7.4% -- 9.4% 8.3% 0.8% 1.8% 11.4% Oil & Gas Services 5.4% 2.2% 3.8% 1.0% 1.5% 3.5% 1.9% 1.6% Packaging & Containers -- -- -- -- 0.1% -- -- -- Pharmaceuticals 5.0% 5.8% 9.7% 4.3% 6.2% 2.8% -- 5.4% Pipelines -- -- -- -- 0.3% -- -- -- Real Estate 1.0% -- -- -- 0.1% -- -- -- REITS -- -- -- -- 0.9% 4.8% 3.1% -- Retail 8.8% 3.5% 11.5% 7.3% 5.4% 4.9% 9.7% 5.6% Savings & Loans -- -- -- -- 0.6% 5.7% 1.2% 0.5% Semiconductors 4.0% 4.3% 5.0% 2.7% 2.5% 2.1% 3.5% 2.5% Software 5.8% 2.9% 6.8% 5.0% 3.4% 0.9% 1.1% -- Telecommunications 3.2% 6.4% 8.1% 5.1% 5.8% 4.6% 5.8% 6.8% Textiles -- -- 0.4% -- --^ 0.8% -- -- Toys/Games/Hobbies -- -- -- -- 0.1% -- -- 0.5% Transportation 1.6% 1.4% 1.5% 1.4% 1.6% 2.4% 6.4% 2.2% Water -- -- -- -- -- -- -- --
_______________________________ ^ Amount is less than 0.05%. SEE NOTES TO FINANCIAL STATEMENTS 122
DISCIPLINED LIFEMODEL LIFEMODEL LARGE CAP LIFEMODEL MODERATELY LIFEMODEL MODERATELY VALUE AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE FUND FUND SM FUND SM FUND SM FUND SM ----------- ---------- ---------- --------- ------------ Advertising -- -- -- -- -- Aerospace/Defense 2.0% -- -- -- -- Agriculture 3.0% -- -- -- -- Airlines -- -- -- -- -- Apparel -- -- -- -- -- Auto Manufacturers 2.3% -- -- -- -- Auto Parts & Equipment -- -- -- -- -- Banks 10.8% -- -- -- -- Beverages 2.5% -- -- -- -- Biotechnology -- -- -- -- -- Building Materials -- -- -- -- -- Cash Equivalents 12.5% -- -- -- -- Chemicals 3.2% -- -- -- -- Closed-end Funds -- -- -- -- -- Coal -- -- -- -- -- Commercial Services 1.3% -- -- -- -- Computers 2.6% -- -- -- -- Cosmetics/Personal Care -- -- -- -- -- Distribution/Wholesale -- -- -- -- -- Diversified Financial Services 7.4% -- -- -- -- Electric 2.1% -- -- -- -- Electrical Components & Equipment -- -- -- -- -- Electronics 1.3% -- -- -- -- Engineering & Construction -- -- -- -- -- Entertainment -- -- -- -- -- Environmental Control -- -- -- -- -- Food 3.8% -- -- -- -- Food Service -- -- -- -- -- Forest Products & Paper -- -- -- -- -- Gas -- -- -- -- -- Hand/Machine Tools 0.8% -- -- -- -- Healthcare-Products 0.9% -- -- -- -- Healthcare-Services 0.9% -- -- -- -- Holding Companies-Diversified -- -- -- -- -- Home Builders -- -- -- -- -- Home Furnishings -- -- -- -- -- Household Products/Wares 1.0% -- -- -- -- Housewares -- -- -- -- -- Insurance 8.9% -- -- -- -- Internet -- -- -- -- -- Investment Companies 2.7% 100.8% 100.5% 100.0% 101.1% Iron/Steel -- -- -- -- -- Leisure Time 1.9% -- -- -- -- Lodging -- -- -- -- -- Machinery-Construction & Mining -- -- -- -- -- Machinery-Diversified 1.5% -- -- -- -- Media 2.2% -- -- -- -- Metal Fabricate/Hardware -- -- -- -- -- Mining 1.7% -- -- -- -- Miscellaneous Manufacturing 3.9% -- -- -- -- Office/Business Equipment 1.5% -- -- -- -- Oil & Gas 14.1% -- -- -- -- Oil & Gas Services -- -- -- -- -- Packaging & Containers -- -- -- -- -- Pharmaceuticals 6.3% -- -- -- -- Pipelines -- -- -- -- -- Real Estate -- -- -- -- -- REITS -- -- -- -- -- Retail 1.3% -- -- -- -- Savings & Loans -- -- -- -- -- Semiconductors 2.7% -- -- -- -- Software -- -- -- -- -- Telecommunications 5.3% -- -- -- -- Textiles -- -- -- -- -- Toys/Games/Hobbies -- -- -- -- -- Transportation -- -- -- -- -- Water -- -- -- -- -- LIFEMODEL DIVIDEND INTERNATIONAL CONSERVATIVE GROWTH TECHNOLOGY EQUITY FUND SM FUND FUND FUND ------------ -------- ---------- ------------- Advertising -- -- 1.1% 0.1% Aerospace/Defense -- 5.2% -- 0.4% Agriculture -- 2.0% -- 0.7% Airlines -- -- -- -- Apparel -- 1.1% -- 0.2% Auto Manufacturers -- -- -- 3.8% Auto Parts & Equipment -- 1.0% -- 0.7% Banks -- 10.5% -- 15.6% Beverages -- 6.3% -- 1.3% Biotechnology -- 1.6% 4.4% --^ Building Materials -- -- -- 1.5% Cash Equivalents -- 4.1% 30.1% 9.0% Chemicals -- 4.6% -- 2.7% Closed-end Funds -- -- -- 0.1% Coal -- -- -- --^ Commercial Services -- -- 1.6% 0.6% Computers -- 0.9% 9.1% 0.4% Cosmetics/Personal Care -- 4.7% -- 0.5% Distribution/Wholesale -- -- -- 1.1% Diversified Financial Services -- 8.4% -- 2.7% Electric -- -- -- 3.1% Electrical Components & Equipment -- 1.8% 1.0% 1.1% Electronics -- -- 5.5% 1.7% Engineering & Construction -- -- -- 0.8% Entertainment -- -- 2.8% 0.2% Environmental Control -- -- -- -- Food -- 3.9% -- 3.6% Food Service -- -- -- 0.2% Forest Products & Paper -- -- -- 0.4% Gas -- -- -- 0.5% Hand/Machine Tools -- -- 1.2% 0.5% Healthcare-Products -- 9.2% 1.1% 0.5% Healthcare-Services -- -- 2.0% --^ Holding Companies-Diversified -- -- -- 0.5% Home Builders -- -- -- 0.4% Home Furnishings -- -- -- 0.8% Household Products/Wares -- -- -- 0.3% Housewares -- -- -- 0.1% Insurance -- 2.1% -- 4.4% Internet -- -- 5.8% 0.3% Investment Companies 100.3% 3.7% 2.9% 3.5% Iron/Steel -- -- -- 1.3% Leisure Time -- -- -- 0.2% Lodging -- 2.0% -- 0.3% Machinery-Construction & Mining -- -- -- 0.3% Machinery-Diversified -- 0.4% -- 0.6% Media -- 1.1% -- 0.8% Metal Fabricate/Hardware -- -- -- 0.2% Mining -- -- -- 3.2% Miscellaneous Manufacturing -- 6.1% 1.6% 1.7% Office/Business Equipment -- -- -- 0.8% Oil & Gas -- 8.6% -- 9.1% Oil & Gas Services -- 1.7% -- -- Packaging & Containers -- -- -- 0.1% Pharmaceuticals -- 4.4% 2.5% 6.9% Pipelines -- -- -- -- Real Estate -- -- -- 2.3% REITS -- -- -- 0.2% Retail -- 1.8% 2.6% 2.0% Savings & Loans -- -- -- -- Semiconductors -- 3.0% 23.8% 0.5% Software -- 3.0% 17.9% 0.8% Telecommunications -- 3.1% 14.2% 5.7% Textiles -- -- -- 0.3% Toys/Games/Hobbies -- -- -- 0.2% Transportation -- -- -- 1.6% Water -- -- -- 0.3%
SEE NOTES TO FINANCIAL STATEMENTS 123 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- The investment concentrations for the Balanced Fund and Strategic Income Fund as a percentage of net assets, by industry, as of July 31, 2006, were as follows: STRATEGIC BALANCED INCOME FUND FUND --------- --------- Aerospace/Defense 1.1% -- Agriculture 0.9% 1.2% Auto Manufacturers 0.7% -- Auto Parts & Equipment 1.4% -- Automobile ABS 3.1% -- Banks 8.1% 16.0% Beverages 1.2% 0.1% Biotechnology 0.8% -- Cash Equivalents 7.8% 4.3% Chemicals 0.9% -- Closed-end Funds -- 9.4% Coal 0.7% -- Commercial MBS 9.4% -- Commercial Services 1.2% -- Computers 1.5% -- Cosmetics/Personal Care 2.3% 0.4% Credit Card ABS -- 0.3% Diversified Financial Services 1.8% 21.3% Electric 2.6% 5.9% Environmental Control 1.1% -- FHLMC Collateral -- 0.6% FNMA Collateral 0.4% -- Food 3.4% 1.2% Forest Products & Paper -- 1.0% Hand/Machine Tools 0.9% -- Healthcare-Products 4.3% -- STRATEGIC BALANCED INCOME FUND FUND --------- --------- Healthcare-Services 1.6% -- Holding Companies-Diversified -- 0.7% Insurance 2.8% 6.6% Internet 0.7% -- Investment Companies 1.0% 5.7% Leisure Time 0.8% -- Machinery-Construction & Mining 0.5% -- Machinery-Diversified 3.2% -- Media 1.2% 1.8% Miscellaneous Manufacturing 1.3% 0.2% Oil & Gas 2.6% 1.1% Oil & Gas Services 2.6% -- Other ABS 0.6% -- Pharmaceuticals 2.9% -- Pipelines 0.2% 0.6% Regional(state/province) -- 0.6% REITS -- 13.5% Retail 5.3% 0.6% Savings & Loans -- 0.5% Software 1.1% -- Sovereign 10.2% 4.6% Telecommunications 3.1% 1.6% TRAINS -- -- Transportation -- 0.3% WL Collateral CMO 13.9% 3.9% The investment concentrations for the Municipal Bond Funds as a percentage of net assets, by industry, as of July 31, 2006, were as follows: INTERMEDIATE OHIO MICHIGAN MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND FUND FUND FUND FUND --------- ------------ --------- --------- Airport 4.9% 7.4% -- 5.4% Cash Equivalents 0.4% 0.1% 2.2% 0.1% Development 2.7% 7.9% 3.0% 7.4% Education 4.5% -- -- -- Facilities 2.5% 4.3% 2.2% 9.4% General 2.5% 5.1% 5.2% 5.6% General Obligation 14.7% 10.1% 17.5% 6.4% Higher Education 15.5% 3.6% 23.7% 7.6% Housing 2.5% 4.9% 3.4% 2.9% Medical 7.0% 9.2% 17.5% 16.6% Multifamily Housing -- 0.3% -- 0.7% Pollution 0.6% 0.4% 5.6% 2.5% Power -- 7.9% 11.6% 4.2% School District 25.9% 10.9% 4.4% 12.7% Single Family Housing 2.7% 5.6% 1.1% 3.6% Student Loan 2.4% 7.2% -- 8.4% Transportation 1.6% 11.4% 3.3% 1.8% Utilities 5.7% 2.8% -- -- Water 5.1% 0.3% -- 5.4% SEE NOTES TO FINANCIAL STATEMENTS 124 FIFTH THIRD FUNDS NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- The investment concentrations for the Bond Funds as a percentage of net assets, by industry, as of July 31, 2006, were as follows:
U. S. INTERMEDIATE SHORT TERM GOVERNMENT HIGH YIELD BOND BOND BOND BOND BOND FUND FUND FUND FUND FUND ---------- ------ ------------ ---------- ---------- Aerospace/Defense 0.4% -- -- -- -- Agency Collateral CMO -- 1.7% 1.9% 1.1% 1.9% Agency Collateral PAC CMO -- -- -- 3.2% -- Auto Manufacturers 0.9% 0.3% -- 0.5% -- Automobile ABS -- 6.1% 0.8% 7.4% -- Banks -- 5.3% 9.1% -- -- Building Materials 2.6% -- -- -- -- Cash Equivalents 7.8% 0.3% 4.6% 15.7% -- Chemicals 1.1% -- --^ -- -- Coal 3.3% -- -- -- -- Commercial MBS -- 16.3% 14.4% 8.8% -- Commercial Services 4.1% 0.7% 1.1% -- -- Computers 1.2% -- -- 1.1% -- Credit Card ABS -- -- 0.7% 0.3% -- Development -- -- -- 0.3% -- Diversified Financial Services 8.4% 8.0% 8.8% 6.6% -- Electric 6.9% 0.5% 2.0% 0.7% -- Electronics 2.3% -- -- -- -- Environmental Control 1.1% -- -- -- -- Food 3.7% 0.2% -- 0.7% -- Forest Products & paper 2.2% -- -- -- -- Gas -- -- 1.1% 1.2% -- Healthcare-Services 1.8% -- -- 1.2% -- Home Builders 4.7% -- -- -- -- Home Equity ABS -- -- 1.8% 1.1% -- Household Products/Wares 1.2% -- -- -- -- Insurance -- --^ 0.4% 0.6% -- Investment Companies 6.8% 3.0% 3.6% 2.2% 11.0% Iron/Steel 2.4% -- -- -- -- Lodging 1.0% -- -- -- -- Machinery-Diversified 1.7% -- -- 0.8% -- Media 6.1% 1.2% 0.7% 0.6% -- Mining 1.6% -- 0.2% -- -- Miscellaneous Manufacturing 1.1% -- 0.2% -- -- Office/Business Equipment 1.1% -- -- -- -- Oil & Gas 8.4% 1.0% 1.9% 0.3% -- Oil & Gas Services 3.5% -- -- -- -- Other ABS -- 4.3% 4.7% 1.9% 6.5% Packaging & Containers 2.2% -- -- -- -- Pharmaceuticals 1.2% -- -- -- -- Pipelines 1.7% 0.3% 0.4% 0.6% -- REITS -- 0.6% 0.9% 1.5% -- Retail 1.7% 0.5% -- -- -- Savings & Loans -- 1.5% -- -- -- Semiconductors 1.0% -- -- -- -- Sovereign -- 43.4% 10.5% 34.2% 84.0% Telecommunications 5.7% 0.9% 0.3% 1.5% -- Transportation 2.5% --^ -- -- -- WL Collateral CMO 2.5% 21.6% 35.3% 21.0% --
SEE NOTES TO FINANCIAL STATEMENTS 125 FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP GROWTH GROWTH GROWTH CORE FUND FUND FUND FUND --------- --------- --------- --------- ASSETS: Investments, at cost $ 159,847 $ 384,354 $ 846,978 $ 185,691 Net unrealized appreciation 27,744 62,511 51,547 16,888 --------- --------- --------- --------- Investments, at value 187,591 446,865 898,525 202,579 Investment in affiliates, at value (cost $13,324, $30,458, $25,700, $4,974, $12,851, $21, $8,994, $3,468, $9,515, $16,767, $--; respectively) 13,324 30,458 25,700 4,974 --------- --------- --------- --------- Total Investments 200,915 477,323 924,225 207,553 Interest, dividends and other receivables 54 109 249 169 Receivable for investments sold 4,540 -- 77,048 -- Receivable for Fund shares sold 10 51 136 2 Receivable from Advisor and affiliates 1 2 4 6 Prepaid expenses and other assets 21 27 32 22 --------- --------- --------- --------- Total Assets 205,541 477,512 1,001,694 207,752 --------- --------- --------- --------- LIABILITIES: Payable to Custodian -- -- -- -- Payable for investments purchased 4,395 10,659 97,421 -- Payable for securities loaned 53,720 105,117 152,650 19,054 Payable for Fund shares redeemed 227 405 1,002 25 Payable for variation margin on futures contracts -- -- -- 10 Accrued expenses and other payables: Payable to Advisor and affiliates 92 258 540 116 Distribution and administrative services fees 6 14 40 5 Other 40 47 141 41 --------- --------- --------- --------- Total Liabilities 58,480 116,500 251,794 19,251 --------- --------- --------- --------- NET ASSETS: Paid-in Capital 89,045 236,364 710,629 203,355 Accumulated net investment income/(loss) (10) -- -- 87 Accumulated net realized gain/(loss) from investment transactions, option contracts and futures 30,282 62,137 (12,276) (31,861) Net unrealized appreciation on investments and futures 27,744 62,511 51,547 16,920 --------- --------- --------- --------- Net Assets $ 147,061 $ 361,012 $ 749,900 $ 188,501 ========= ========= ========= ========= Market value of securities loaned $ 52,019 $ 101,984 $ 147,451 $ 18,381 ========= ========= ========= ========= Net Assets: Institutional Shares $ 126,809 $ 318,133 $ 616,737 $ 166,510 Class A Shares 17,783 34,437 114,828 20,923 Class B Shares 1,414 6,507 13,259 953 Class C Shares 384 1,122 3,199 112 Advisor Shares 671 813 1,877 3 Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA --------- --------- --------- --------- Total $ 147,061 $ 361,012 $ 749,900 $ 188,501 ========= ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 8,994 19,219 39,348 10,986 Class A Shares 1,303 2,130 7,478 1,399 Class B Shares 107 420 899 64 Class C Shares 29 75 223 8 Advisor Shares 49 51 124 -- ^ Select Shares NA NA NA NA Preferred Shares NA NA NA NA Trust Shares NA NA NA NA --------- --------- --------- --------- Total 10,482 21,895 48,072 12,457 ========= ========= ========= ========= Net Asset Value+ Institutional Shares $ 14.10 $ 16.55 $ 15.67 $ 15.16 ========= ========= ========= ========= Class A Shares-redemption price per share $ 13.65 $ 16.17 $ 15.36 $ 14.96 ========= ========= ========= ========= Class B Shares-offering price per share* $ 13.21 $ 15.50 $ 14.74 $ 14.98 ========= ========= ========= ========= Class C Shares-offering price per share* $ 13.23 $ 14.94 $ 14.36 $ 14.98 ========= ========= ========= ========= Advisor Shares-redemption price per share $ 13.65 $ 16.00 $ 15.19 $ 15.16 ========= ========= ========= ========= Select Shares NA NA NA NA ========= ========= ========= ========= Preferred Shares NA NA NA NA ========= ========= ========= ========= Trust Shares NA NA NA NA ========= ========= ========= ========= Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 14.37 $ 17.02 $ 16.17 $ 15.75 ========= ========= ========= ========= Advisor Shares $ 14.11 $ 16.54 $ 15.70 $ 15.67 ========= ========= ========= ========= EQUITY MICRO CAP SMALL CAP INDEX BALANCED VALUE VALUE FUND FUND FUND FUND --------- --------- --------- --------- ASSETS: Investments, at cost $ 215,565 $ 90,862 $ 117,614 $ 143,338 Net unrealized appreciation 218,457 733 14,893 5,547 --------- --------- --------- --------- Investments, at value 434,022 91,595 132,507 148,885 Investment in affiliates, at value (cost $13,324, $30,458, $25,700, $4,974, $12,851, $21, $8,994, $3,468, $9,515, $16,767, $--; respectively) 12,851 21 8,994 3,468 --------- --------- --------- --------- Total Investments 446,873 91,616 141,501 152,353 Interest, dividends and other receivables 423 208 54 59 Receivable for investments sold 97 1,600 3,292 1,917 Receivable for Fund shares sold 402 3 45 14 Receivable from Advisor and affiliates 12 3 2 2 Prepaid expenses and other assets 22 24 24 17 --------- --------- --------- --------- Total Assets 447,829 93,454 144,918 154,362 --------- --------- --------- --------- LIABILITIES: Payable to Custodian -- 421 1,208 -- Payable for investments purchased -- 3,629 829 1,213 Payable for securities loaned 38,883 6,463 23,113 30,712 Payable for Fund shares redeemed 1,090 489 367 137 Payable for variation margin on futures contracts 26 -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 42 47 107 97 Distribution and administrative services fees 44 16 21 3 Other 73 35 43 18 --------- --------- --------- --------- Total Liabilities 40,158 11,100 25,688 32,180 --------- --------- --------- --------- NET ASSETS: Paid-in Capital 231,055 125,708 80,052 101,468 Accumulated net investment income/(loss) 434 134 -- 200 Accumulated net realized gain/(loss) from investment transactions, option contracts and futures (42,474) (44,221) 24,285 14,967 Net unrealized appreciation on investments and futures 218,656 733 14,893 5,547 --------- --------- --------- --------- Net Assets $ 407,671 $ 82,354 $ 119,230 $ 122,182 ========= ========= ========= ========= Market value of securities loaned $ 37,422 $ 6,294 $ 22,325 $ 29,742 ========= ========= ========= ========= Net Assets: Institutional Shares $ 184,177 $ 35,740 72,981 $ 116,503 Class A Shares 65,204 37,286 17,759 2,434 Class B Shares 4,229 7,536 6,032 1,221 Class C Shares 1,998 1,669 5,161 839 Advisor Shares 1,819 123 17,297 1,185 Select Shares 17,558 NA NA NA Preferred Shares 64,939 NA NA NA Trust Shares 67,747 NA NA NA --------- --------- --------- --------- Total $ 407,671 $ 82,354 119,230 $ 122,182 ========= ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 7,599 2,895 9,071 5,578 Class A Shares 2,699 3,037 2,278 117 Class B Shares 176 621 803 61 Class C Shares 83 138 687 42 Advisor Shares 75 10 2,243 58 Select Shares 725 NA NA NA Preferred Shares 2,680 NA NA NA Trust Shares 2,796 NA NA NA --------- --------- --------- --------- Total 16,833 6,701 15,082 5,856 ========= ========= ========= ========= Net Asset Value+ Institutional Shares $ 24.24 $ 12.35 $ 8.05 $ 20.89 ========= ========= ========= ========= Class A Shares-redemption price per share $ 24.16 $ 12.28 $ 7.80 $ 20.74 ========= ========= ========= ========= Class B Shares-offering price per share* $ 24.01 $ 12.13 $ 7.52 $ 20.18 ========= ========= ========= ========= Class C Shares-offering price per share* $ 24.03 $ 12.11 $ 7.52 $ 20.14 ========= ========= ========= ========= Advisor Shares-redemption price per share $ 24.13 $ 12.25 $ 7.71 $ 20.56 ========= ========= ========= ========= Select Shares $ 24.23 NA NA NA ========= ========= ========= ========= Preferred Shares $ 24.23 NA NA NA ========= ========= ========= ========= Trust Shares $ 24.23 NA NA NA ========= ========= ========= ========= Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 25.43 $ 12.93 $ 8.21 $ 21.83 ========= ========= ========= ========= Advisor Shares $ 24.94 $ 12.66 $ 7.97 $ 21.25 ========= ========= ========= ========= DISCIPLINED MULTI CAP LARGE CAP LIFEMODEL VALUE VALUE AGGRESSIVE FUND FUND FUND SM --------- ----------- ---------- ASSETS: Investments, at cost $ 299,507 $ 578,549 $ 149,485 Net unrealized appreciation 70,866 93,021 24,125 --------- --------- --------- Investments, at value 370,373 671,570 173,610 Investment in affiliates, at value (cost $13,324, $30,458, $25,700, $4,974, $12,851, $21, $8,994, $3,468, $9,515, $16,767, $--; respectively) 9,515 16,767 -- --------- --------- --------- Total Investments 379,888 688,337 173,610 # Interest, dividends and other receivables 435 972 57 Receivable for investments sold 7,748 22,731 -- Receivable for Fund shares sold 120 689 129 Receivable from Advisor and affiliates 4 4 10 Prepaid expenses and other assets 25 31 22 --------- --------- --------- Total Assets 388,220 712,764 173,828 --------- --------- --------- LIABILITIES: Payable to Custodian -- -- -- Payable for investments purchased 11,174 22,719 -- Payable for securities loaned 52,482 76,631 -- Payable for Fund shares redeemed 283 267 1,610 Payable for variation margin on futures contracts -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 281 427 10 Distribution and administrative services fees 44 12 27 Other 58 75 28 --------- --------- --------- Total Liabilities 64,322 100,131 1,675 --------- --------- --------- NET ASSETS: Paid-in Capital 203,379 449,196 143,301 Accumulated net investment income/(loss) 255 711 23 Accumulated net realized gain/(loss) from investment transactions, option contracts and futures 49,398 69,705 4,704 Net unrealized appreciation on investments and futures 70,866 93,021 24,125 --------- --------- --------- Net Assets $ 323,898 $ 612,633 $ 172,153 ========= ========= ========= Market value of securities loaned $ 50,691 $ 73,157 $ -- ========= ========= ========= Net Assets: Institutional Shares $ 226,189 $ 581,507 $ 101,365 Class A Shares 38,714 22,968 50,416 Class B Shares 21,679 5,783 16,926 Class C Shares 4,455 2,227 2,661 Advisor Shares 32,861 148 785 Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA --------- --------- --------- Total $ 323,898 $ 612,633 $ 172,153 ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 8,807 39,502 6,951 Class A Shares 1,525 1,564 3,469 Class B Shares 881 390 1,188 Class C Shares 181 153 187 Advisor Shares 1,301 10 54 Select Shares NA NA NA Preferred Shares NA NA NA Trust Shares NA NA NA --------- --------- --------- Total 12,695 41,619 11,849 ========= ========= ========= Net Asset Value+ Institutional Shares $ 25.68 $ 14.72 $ 14.58 ========= ========= ========= Class A Shares-redemption price per share $ 25.39 $ 14.69 $ 14.53 ========= ========= ========= Class B Shares-offering price per share* $ 24.61 $ 14.81 $ 14.24 ========= ========= ========= Class C Shares-offering price per share* $ 24.59 $ 14.56 $ 14.24 ========= ========= ========= Advisor Shares-redemption price per share $ 25.26 $ 14.66 $ 14.54 ========= ========= ========= Select Shares NA NA NA ========= ========= ========= Preferred Shares NA NA NA ========= ========= ========= Trust Shares NA NA NA ========= ========= ========= Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 26.73 $ 15.46 $ 15.29 ========= ========= ========= Advisor Shares $ 26.11 $ 15.15 $ 15.03 ========= ========= =========
_________________ * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred shares. # Represents investments in affiliates. + Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. SEE NOTES TO FINANCIAL STATEMENTS 126-127 Spread FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) --------------------------------------------------------------------------------
LIFEMODEL LIFEMODEL MODERATELY LIFEMODEL MODERATELY LIFEMODEL STRATEGIC AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE INCOME FUND SM FUND SM FUND SM FUND SM FUND ---------- --------- ------------ ------------ --------- ASSETS: Investments, at cost $ 288,443 $ 490,176 $ 97,364 $ 54,123 $ 149,126 Net unrealized appreciation/(depreciation) 40,100 30,516 7,518 652 2,801 --------- --------- --------- --------- --------- Investments, at value 328,543 520,692 104,882 54,775 151,927 Investment in affiliates, at value (cost $--, $--, $--, $--, $8,338, $774, $1,591, $--, $4,506, $7,933, $16,949, $5,857; respectively) -- -- -- -- 8,338 --------- --------- --------- --------- --------- Total Investments 328,543 # 520,692 # 104,882 # 54,775 # 160,265 Cash -- -- -- -- -- Foreign currency, at value (cost $--, $--, $--, $--, $--, $--, $--, $8,417, $--, $--, $-- and $--; respectively) -- -- -- -- -- Interest, dividends and other receivables 87 99 25 11 885 Receivable for investments sold -- -- -- -- -- Receivable for Fund shares sold 113 299 40 15 209 Receivable for forward foreign currency contracts -- -- -- -- -- Reclaims receivable -- -- -- -- -- Receivable from Advisor and affiliates 18 24 7 5 2 Prepaid expenses and other assets 24 24 20 20 25 --------- --------- --------- --------- --------- Total Assets 328,785 521,138 104,974 54,826 161,386 --------- --------- --------- --------- --------- LIABILITIES: Payable to Custodian -- -- -- -- -- Distributions payable -- -- -- -- 410 Payable for investments purchased -- -- -- -- -- Payable for securities loaned -- -- -- -- 6,581 Payable for Fund shares redeemed 1,561 332 1,151 204 163 Payable for forward foreign currency contracts -- -- -- -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 18 29 6 3 133 Distribution and administrative services fees 80 64 28 15 28 Other 59 71 19 12 25 --------- --------- --------- --------- --------- Total Liabilities 1,718 496 1,204 234 7,340 --------- --------- --------- --------- --------- NET ASSETS: Paid-in Capital 278,869 478,580 93,838 53,018 149,903 Accumulated net investment income/(loss) 323 939 218 156 (100) Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency 7,775 10,607 2,196 766 1,442 Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 40,100 30,516 7,518 652 2,801 --------- --------- --------- --------- --------- Net Assets $ 327,067 $ 520,642 $ 103,770 $ 54,592 $ 154,046 ========= ========= ========= ========= ========= Market value of securities loaned $ -- $ -- $ -- $ -- $ 6,360 ========= ========= ========= ========= ========= Net Assets: Institutional Shares $ 135,542 $ 369,903 $ 42,683 $ 24,385 $ 107,130 Class A Shares 128,564 100,588 37,479 16,138 4,429 Class B Shares 53,395 43,234 20,488 10,208 1,588 Class C Shares 8,196 6,495 3,058 3,816 20,019 Advisor Shares 1,370 422 62 45 20,880 --------- --------- --------- --------- --------- Total $ 327,067 $ 520,642 $ 103,770 $ 54,592 $ 154,046 ========= ========= ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 9,694 29,770 3,756 2,276 9,500 Class A Shares 9,211 8,106 3,304 1,509 394 Class B Shares 3,843 3,502 1,812 957 141 Class C Shares 590 526 270 358 1,792 Advisor Shares 98 34 5 4 1,857 --------- --------- --------- --------- --------- Total 23,436 41,938 9,147 5,104 13,684 ========= ========= ========= ========= ========= Net Asset Value+ Institutional Shares $ 13.98 $ 12.43 $ 11.36 $ 10.72 $ 11.28 ========= ========= ========= ========= ========= Class A Shares-redemption price per share $ 13.96 $ 12.41 $ 11.35 $ 10.70 $ 11.25 ========= ========= ========= ========= ========= Class B Shares-offering price per share* $ 13.90 $ 12.35 $ 11.30 $ 10.67 $ 11.25 ========= ========= ========= ========= ========= Class C Shares-offering price per share* $ 13.89 $ 12.36 $ 11.32 $ 10.67 $ 11.17 ========= ========= ========= ========= ========= Advisor Shares-redemption price per share $ 13.95 $ 12.39 $ 11.33 $ 10.69 $ 11.24 ========= ========= ========= ========= ========= Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 5.00% 5.00% Advisor Shares 3.25% 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 14.69 $ 13.06 $ 11.95 $ 11.26 $ 11.84 ========= ========= ========= ========= ========= Advisor Shares $ 14.42 $ 12.81 $ 11.71 $ 11.05 $ 11.62 ========= ========= ========= ========= ========= DIVIDEND INTERNATIONAL HIGH YIELD GROWTH TECHNOLOGY EQUITY BOND BOND FUND (A) FUND FUND FUND FUND --------- ---------- ----------- --------- --------- ASSETS: Investments, at cost $ 20,665 $ 71,662 $ 426,676 $ 67,856 $ 310,298 Net unrealized appreciation/(depreciation) 1,092 (790) 65,877 (2,004) (3,978) --------- --------- --------- --------- --------- Investments, at value 21,757 70,872 492,553 65,852 306,320 Investment in affiliates, at value (cost $--, $--, $--, $--, $8,338, $774, $1,591, $--, $4,506, $7,933, $16,949, $5,857; respectively) 774 1,591 -- 4,506 7,933 --------- --------- --------- --------- --------- Total Investments 22,531 72,463 492,553 70,358 314,253 Cash -- -- 1,811 -- -- Foreign currency, at value (cost $--, $--, $--, $--, $--, $--, $--, $8,417, $--, $--, $-- and $--; respectively) -- -- 8,543 -- -- Interest, dividends and other receivables 8 2 444 1,323 1,333 Receivable for investments sold -- 11,234 3,666 -- 7,823 Receivable for Fund shares sold 8 36 281 10 54 Receivable for forward foreign currency contracts -- -- 1,851 -- -- Reclaims receivable -- -- 111 -- -- Receivable from Advisor and affiliates 4 -- 2 4 3 Prepaid expenses and other assets 27 24 31 10 26 --------- --------- --------- --------- --------- Total Assets 22,578 83,759 509,293 71,705 323,492 --------- --------- --------- --------- --------- LIABILITIES: Payable to Custodian -- -- -- 32 -- Distributions payable -- -- -- -- -- Payable for investments purchased 463 11,621 3,343 -- 55,370 Payable for securities loaned 862 16,640 28,616 5,202 745 Payable for Fund shares redeemed 24 221 167 2 181 Payable for forward foreign currency contracts -- -- 1,533 -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 11 49 407 40 119 Distribution and administrative services fees 2 3 13 -- ^ 5 Other 14 13 87 8 40 --------- --------- --------- --------- --------- Total Liabilities 1,376 28,547 34,166 5,284 56,460 --------- --------- --------- --------- --------- NET ASSETS: Paid-in Capital 35,180 101,819 427,115 68,189 275,493 Accumulated net investment income/(loss) -- -- 1,428 22 27 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency (15,070) (45,817) (20,210) 214 (4,510) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency 1,092 (790) 66,794 (2,004) (3,978) --------- --------- --------- --------- --------- Net Assets $ 21,202 $ 55,212 $ 475,127 $ 66,421 $ 267,032 ========= ========= ========= ========= ========= Market value of securities loaned $ 827 $ 16,119 $ 27,576 $ 5,039 $ 723 ========= ========= ========= ========= ========= Net Assets: Institutional Shares $ 15,759 $ 47,523 $ 434,572 $ 66,033 $ 252,145 Class A Shares 4,670 4,048 27,725 227 11,657 Class B Shares 371 935 2,060 96 2,655 Class C Shares 389 787 1,139 55 315 Advisor Shares 13 1,919 9,631 10 260 --------- --------- --------- --------- --------- Total $ 21,202 $ 55,212 $ 475,127 $ 66,421 $ 267,032 ========= ========= ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 698 4,722 33,883 6,779 26,035 Class A Shares 211 408 2,159 23 1,204 Class B Shares 17 99 163 10 274 Class C Shares 19 83 93 6 33 Advisor Shares 1 196 750 1 27 --------- --------- --------- --------- --------- Total 946 5,508 37,048 6,819 27,573 ========= ========= ========= ========= ========= Net Asset Value+ Institutional Shares $ 22.56 $ 10.06 $ 12.83 $ 9.74 $ 9.68 ========= ========= ========= ========= ========= Class A Shares-redemption price per share $ 22.18 $ 9.91 $ 12.84 $ 9.74 $ 9.68 ========= ========= ========= ========= ========= Class B Shares-offering price per share* $ 21.53 $ 9.49 $ 12.64 $ 9.73 $ 9.68 ========= ========= ========= ========= ========= Class C Shares-offering price per share* $ 20.97 $ 9.46 $ 12.31 $ 9.74 $ 9.69 ========= ========= ========= ========= ========= Advisor Shares-redemption price per share $ 22.11 $ 9.79 $ 12.83 $ 9.74 $ 9.68 ========= ========= ========= ========= ========= Maximum Sales Charge Class A Shares 5.00% 5.00% 5.00% 4.75% 4.75% Advisor Shares 3.25% 3.25% 3.25% 3.25% 3.25% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 23.35 $ 10.43 $ 13.52 $ 10.23 $ 10.16 ========= ========= ========= ========= ========= Advisor Shares $ 22.85 $ 10.12 $ 13.26 $ 10.07 $ 10.01 ========= ========= ========= ========= ========= INTERMEDIATE SHORT TERM BOND BOND FUND FUND --------- --------- ASSETS: Investments, at cost $ 481,129 $ 310,718 Net unrealized appreciation/(depreciation) (6,038) (4,647) --------- --------- Investments, at value 475,091 306,071 Investment in affiliates, at value (cost $--, $--, $--, $--, $8,338, $774, $1,591, $--, $4,506, $7,933, $16,949, $5,857; respectively) 16,949 5,857 --------- --------- Total Investments 492,040 311,928 Cash -- -- Foreign currency, at value (cost $--, $--, $--, $--, $--, $--, $--, $8,417, $--, $--, $-- and $--; respectively) -- -- Interest, dividends and other receivables 4,009 1,879 Receivable for investments sold 9,965 -- Receivable for Fund shares sold 54 52 Receivable for forward foreign currency contracts -- -- Reclaims receivable -- -- Receivable from Advisor and affiliates 8 2 Prepaid expenses and other assets 28 26 --------- --------- Total Assets 506,104 313,887 --------- --------- LIABILITIES: Payable to Custodian -- -- Distributions payable -- -- Payable for investments purchased 16,800 -- Payable for securities loaned 21,265 42,583 Payable for Fund shares redeemed 723 168 Payable for forward foreign currency contracts -- -- Accrued expenses and other payables: Payable to Advisor and affiliates 211 100 Distribution and administrative services fees 6 3 Other 76 40 --------- --------- Total Liabilities 39,081 42,894 --------- --------- NET ASSETS: Paid-in Capital 512,799 298,569 Accumulated net investment income/(loss) 69 15 Accumulated net realized gain/(loss) from investment transactions, options contracts, futures and foreign currency (39,807) (22,944) Net unrealized appreciation/(depreciation) on investments, futures and foreign currency (6,038) (4,647) --------- --------- Net Assets $ 467,023 $ 270,993 ========= ========= Market value of securities loaned $ 20,603 $ 41,152 ========= ========= Net Assets: Institutional Shares $ 440,962 $ 258,423 Class A Shares 23,075 12,362 Class B Shares 2,232 NA Class C Shares 741 205 Advisor Shares 13 3 --------- --------- Total $ 467,023 $ 270,993 ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 46,352 27,928 Class A Shares 2,419 1,338 Class B Shares 235 NA Class C Shares 78 22 Advisor Shares 1 -- ^ --------- --------- Total 49,085 29,288 ========= ========= Net Asset Value+ Institutional Shares $ 9.51 $ 9.25 ========= ========= Class A Shares-redemption price per share $ 9.54 $ 9.25 ========= ========= Class B Shares-offering price per share* $ 9.49 NA ========= ========= Class C Shares-offering price per share* $ 9.51 $ 9.25 ========= ========= Advisor Shares-redemption price per share $ 9.51 $ 9.24 ========= ========= Maximum Sales Charge Class A Shares 3.50% 3.50% Advisor Shares 2.00% 2.00% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 9.89 $ 9.59 ========= ========= Advisor Shares $ 9.70 $ 9.43 ========= =========
___________________ (a) Formerly the Select Stock Fund. * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred shares. # Represents investments in affiliates. + Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. SEE NOTES TO FINANCIAL STATEMENTS 128-129 Spread FIFTH THIRD FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 2006 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) --------------------------------------------------------------------------------
U.S. INTERMEDIATE OHIO MICHIGAN GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND BOND FUND FUND FUND FUND FUND ---------- --------- ------------ --------- --------- ASSETS: Investments, at cost $ 51,707 $ 41,649 $ 164,040 $ 112,932 $ 57,108 Net unrealized appreciation/(depreciation) (1,358) 1,040 2,543 1,302 (504) --------- --------- --------- --------- --------- Investments, at value 50,349 42,689 166,583 114,234 56,604 Investment in affiliates (cost $5,997, $--, $--, $--, $--; respectively) 5,997 -- -- -- -- --------- --------- --------- --------- --------- Total Investments 56,346 42,689 166,583 114,234 56,604 Interest, dividends and other receivables 384 574 1,737 1,128 650 Receivable for investments sold -- -- 5 -- -- Receivable for Fund shares sold 3 10 30 -- 18 Receivable from Advisor and affiliates 2 3 2 1 3 Prepaid expenses and other assets 21 14 25 26 21 --------- --------- --------- --------- --------- Total Assets 56,756 43,290 168,382 115,389 57,296 --------- --------- --------- --------- --------- LIABILITIES: Payable to Custodian 45 -- -- -- -- Payable for investments purchased 2,170 1,056 528 1,605 1,056 Payable for Fund shares redeemed 29 40 129 309 -- ^ Accrued expenses and other payables: Payable to Advisor and affiliates 20 16 62 56 24 Distribution and administrative services fees 6 1 1 9 1 Other 9 8 28 16 11 --------- --------- --------- --------- --------- Total Liabilities 2,279 1,121 748 1,995 1,092 --------- --------- --------- --------- --------- NET ASSETS: Paid-in Capital 55,703 40,820 165,116 112,034 56,991 Accumulated net investment income 154 12 15 6 2 Accumulated net realized gain/(loss) from investment transactions (22) 297 (40) 52 (285) Net unrealized appreciation/(depreciation) on investments (1,358) 1,040 2,543 1,302 (504) --------- --------- --------- --------- --------- Net Assets $ 54,477 $ 42,169 $ 167,634 $ 113,394 $ 56,204 ========= ========= ========= ========= ========= Net Assets: Institutional Shares $ 29,005 $ 39,514 $ 164,537 $ 85,716 $ 50,670 Class A Shares 23,702 1,378 2,559 23,032 4,728 Class B Shares NA 1,016 446 3,426 607 Class C Shares 1,767 87 89 1,217 196 Advisor Shares 3 174 3 3 3 --------- --------- --------- --------- --------- Total $ 54,477 $ 42,169 $ 167,634 $ 113,394 $ 56,204 ========= ========= ========= ========= ========= Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value): Institutional Shares 2,932 4,201 16,463 8,572 5,126 Class A Shares 2,393 146 256 2,302 479 Class B Shares NA 108 45 350 61 Class C Shares 180 9 9 122 20 Advisor Shares -- ^ 18 -- ^ -- ^ -- ^ --------- --------- --------- --------- --------- Total 5,505 4,482 16,773 11,346 5,686 ========= ========= ========= ========= ========= Net Asset Value+ Institutional Shares $ 9.89 $ 9.40 $ 9.99 $ 10.00 $ 9.88 ========= ========= ========= ========= ========= Class A Shares-redemption price per share $ 9.90 $ 9.45 $ 10.00 $ 10.01 $ 9.87 ========= ========= ========= ========= ========= Class B Shares-offering price per share* NA $ 9.37 $ 9.98 $ 9.78 $ 9.88 ========= ========= ========= ========= ========= Class C Shares-offering price per share* $ 9.82 $ 9.39 $ 9.99 $ 9.97 $ 9.88 ========= ========= ========= ========= ========= Advisor Shares-redemption price per share $ 9.90 $ 9.40 $ 10.00 $ 9.99 $ 9.88 ========= ========= ========= ========= ========= Maximum Sales Charge Class A Shares 4.75% 4.75% 3.50% 4.75% 4.75% Advisor Shares 3.25% 3.25% 2.00% 3.25% 3.25% Maximum Offering Price (100%/(100%-Maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares $ 10.39 $ 9.92 $ 10.36 $ 10.51 $ 10.36 ========= ========= ========= ========= ========= Advisor Shares $ 10.23 $ 9.72 $ 10.20 $ 10.33 $ 10.21 ========= ========= ========= ========= =========
__________________ * Redemption price per share varies by length of time shares are held. ^ Represents fewer than five hundred shares. + Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. SEE NOTES TO FINANCIAL STATEMENTS 130 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2006 (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
SMALL CAP MID CAP QUALITY LARGE CAP EQUITY GROWTH GROWTH GROWTH CORE INDEX FUND FUND FUND FUND (A) FUND --------- --------- --------- --------- --------- INVESTMENT INCOME: Dividend income $ 397 $ 3,245 $ 7,377 $ 3,791 $ 8,020 Income from securities lending 96 82 145 18 58 --------- --------- --------- --------- --------- Total Investment Income 493 3,327 7,522 3,809 8,078 --------- --------- --------- --------- --------- EXPENSES: Investment advisory fees 1,268 3,179 6,697 1,324 1,243 Administrative fees 327 705 1,473 341 762 Distribution services fees-Class A Shares 52 99 354 56 172 Distribution services fees-Class B Shares 17 69 159 10 44 Distribution services fees-Class C Shares 4 11 31 1 17 Distribution services fees-Advisor Shares 4 5 13 -- ^ 8 Administrative services fees-Class C Shares 1 4 10 -- ^ 6 Administrative services fees-Select Shares NA NA NA NA 14 Administrative services fees-Preferred Shares NA NA NA NA 109 Administrative services fees-Trust Shares NA NA NA NA 180 Accounting fees 80 122 192 86 162 Registration and filing fees 27 35 44 25 36 Transfer and dividend disbursing agent fees 72 138 330 72 136 Custody fees 21 22 36 22 33 Trustees' fees and expenses 7 16 31 8 15 Other expenses 61 92 250 61 125 --------- --------- --------- --------- --------- Total expenses 1,941 4,497 9,620 2,006 3,062 --------- --------- --------- --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (22) (6) (37) (199) (1,706) Transfer and dividend disbursing agent fees waived -- (12) (12) -- (21) --------- --------- --------- --------- --------- Net Expenses 1,919 4,479 9,571 1,807 1,335 --------- --------- --------- --------- --------- Net Investment Income/(Loss) (1,426) (1,152) (2,049) 2,002 6,743 --------- --------- --------- --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND FUTURES: Net realized gains on investment transactions 39,940 88,879 95,193 10,681 15,100 Net realized gains/(losses) on futures transactions 257 -- -- (163) 222 Change in unrealized appreciation/depreciation on investments and futures (34,296) (70,388) (123,423) (1,203) (1,847) --------- --------- --------- --------- --------- Net realized and unrealized gains/(losses) on investments and futures 5,901 18,491 (28,230) 9,315 13,475 --------- --------- --------- --------- --------- Change in net assets resulting from operations $ 4,475 $ 17,339 $ (30,279) $ 11,317 $ 20,218 ========= ========= ========= ========= =========
_________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS 131 FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2006 (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
MICRO CAP SMALL CAP MULTI CAP BALANCED VALUE VALUE VALUE FUND FUND FUND FUND --------- --------- --------- --------- INVESTMENT INCOME: Interest income $ 1,885 $ -- $ -- $ -- Dividend income 1,177 2,201 2,114 7,768 Income from securities lending 9 70 47 56 --------- --------- --------- --------- Total Investment Income 3,071 2,271 2,161 7,824 --------- --------- --------- --------- EXPENSES: Investment advisory fees 868 1,429 1,222 3,389 Administrative fees 199 261 247 603 Distribution services fees-Class A Shares 121 51 7 98 Distribution services fees-Class B Shares 92 70 12 222 Distribution services fees-Class C Shares 23 43 7 34 Distribution services fees-Advisor Shares 1 114 7 183 Administrative services fees-Class C Shares 8 14 2 11 Accounting fees 82 76 72 112 Registration and filing fees 35 34 18 25 Transfer and dividend disbursing agent fees 79 96 50 163 Custody fees 20 40 21 21 Trustees' fees and expenses 4 6 5 14 Other expenses 37 51 43 109 --------- --------- --------- --------- Total expenses 1,569 2,285 1,713 4,984 --------- --------- --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (270) (34) (40) (50) Transfer and dividend disbursing agent fees waived -- -- -- (12) --------- --------- --------- --------- Net Expenses 1,299 2,251 1,673 4,922 --------- --------- --------- --------- Net Investment Income 1,772 20 488 2,902 --------- --------- --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND OPTIONS: Net realized gains/(losses) on investment and option transactions 8,157 41,836 20,068 67,055 Realized gain distributions from underlying funds -- -- -- -- Change in unrealized appreciation/depreciation on investments and options (11,421) (39,004) (18,289) (43,868) --------- --------- --------- --------- Net realized and unrealized gains/(losses) on investments and options (3,264) 2,832 1,779 23,187 --------- --------- --------- --------- Change in net assets resulting from operations $ (1,492) $ 2,852 $ 2,267 $ 26,089 ========= ========= ========= ========= DISCIPLINED LIFEMODEL LARGE CAP LIFEMODEL MODERATELY LIFEMODEL VALUE AGGRESSIVE AGGRESSIVE MODERATE FUND (A) FUND SM (A) FUND SM (A) FUND SM (A) ----------- ----------- ----------- ----------- INVESTMENT INCOME: Interest income $ -- $ -- $ -- $ -- Dividend income 14,908 2,284 # 6,866 # 13,513 # Income from securities lending 75 -- -- -- --------- --------- --------- --------- Total Investment Income 14,983 2,284 6,866 13,513 --------- --------- --------- --------- EXPENSES: Investment advisory fees 4,849 233 472 728 Administrative fees 1,070 282 561 860 Distribution services fees-Class A Shares 60 123 319 261 Distribution services fees-Class B Shares 57 166 520 441 Distribution services fees-Class C Shares 17 18 66 55 Distribution services fees-Advisor Shares 1 1 3 1 Administrative services fees-Class C Shares 6 6 22 18 Accounting fees 159 73 105 140 Registration and filing fees 41 18 21 20 Transfer and dividend disbursing agent fees 169 85 171 174 Custody fees 27 15 21 26 Trustees' fees and expenses 24 6 13 20 Other expenses 187 48 96 154 --------- --------- --------- --------- Total expenses 6,667 1,074 2,390 2,898 --------- --------- --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (35) (636) (1,196) (1,721) Transfer and dividend disbursing agent fees waived (12) -- (12) (12) --------- --------- --------- --------- Net Expenses 6,620 438 1,182 1,165 --------- --------- --------- --------- Net Investment Income 8,363 1,846 5,684 12,348 --------- --------- --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND OPTIONS: Net realized gains/(losses) on investment and option transactions 88,966 (82)+ 12 + 703 + Realized gain distributions from underlying funds -- 5,088 8,409 10,525 Change in unrealized appreciation/depreciation on investments and options (44,459) (259) (1,747) (6,444) --------- --------- --------- --------- Net realized and unrealized gains/(losses) on investments and options 44,507 4,747 6,674 4,784 --------- --------- --------- --------- Change in net assets resulting from operations $ 52,870 $ 6,593 $ 12,358 $ 17,132 ========= ========= ========= ========= LIFEMODEL MODERATELY LIFEMODEL STRATEGIC CONSERVATIVE CONSERVATIVE INCOME FUND SM (A) FUND SM (A) FUND ------------ ------------ --------- INVESTMENT INCOME: Interest income $ -- $ -- $ 2,411 Dividend income 3,273 # 2,165 # 6,844 Income from securities lending -- -- 20 --------- --------- --------- Total Investment Income 3,273 2,165 9,275 --------- --------- --------- EXPENSES: Investment advisory fees 157 86 1,581 Administrative fees 193 110 285 Distribution services fees-Class A Shares 98 45 13 Distribution services fees-Class B Shares 219 113 19 Distribution services fees-Class C Shares 27 32 179 Distribution services fees-Advisor Shares -- ^ -- ^ 131 Administrative services fees-Class C Shares 9 11 60 Accounting fees 70 70 75 Registration and filing fees 16 16 27 Transfer and dividend disbursing agent fees 55 36 81 Custody fees 13 10 11 Trustees' fees and expenses 4 2 6 Other expenses 35 20 48 --------- --------- --------- Total expenses 896 551 2,516 --------- --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (459) (304) (36) Transfer and dividend disbursing agent fees waived -- -- -- --------- --------- --------- Net Expenses 437 247 2,480 --------- --------- --------- Net Investment Income 2,836 1,918 6,795 --------- --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS AND OPTIONS: Net realized gains/(losses) on investment and option transactions 1,257 + 503 + 1,927 Realized gain distributions from underlying funds 1,770 631 -- Change in unrealized appreciation/depreciation on investments and options (2,737) (1,657) (5,228) --------- --------- --------- Net realized and unrealized gains/(losses) on investments and options 290 (523) (3,301) --------- --------- --------- Change in net assets resulting from operations $ 3,126 $ 1,395 $ 3,494 ========= ========= =========
_________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. # Represents income from affiliates. + Represents realized gains/(losses) from investment transactions with affiliates. SEE NOTES TO FINANCIAL STATEMENTS 132-133 Spread FIFTH THIRD FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2006 (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
DIVIDEND GROWTH INTERNATIONAL HIGH YIELD FUND TECHNOLOGY EQUITY BOND BOND (A) (B) FUND FUND FUND (C) FUND --------- ---------- ------------- ---------- --------- INVESTMENT INCOME: Interest income $ -- $ -- $ 28 $ 2,592 $ 13,781 Dividend income 401 112 11,537 97 316 Foreign tax withholding -- -- (810) -- -- Income from securities lending 1 36 364 -- ^ 33 --------- --------- --------- --------- --------- Total Investment Income 402 148 11,119 2,689 14,130 --------- --------- --------- --------- --------- EXPENSES: Investment advisory fees 160 544 4,284 249 1,709 Administrative fees 45 104 760 69 508 Distribution services fees-Class A Shares 14 13 64 -- ^ 34 Distribution services fees-Class B Shares 3 11 17 -- ^ 31 Distribution services fees-Class C Shares 3 5 9 -- ^ 3 Distribution services fees-Advisor Shares -- ^ 4 54 -- ^ 2 Administrative services fees-Class C Shares 1 2 3 -- ^ 1 Accounting fees 71 69 259 52 119 Registration and filing fees 36 34 41 11 34 Transfer and dividend disbursing agent fees 32 37 128 16 88 Custody fees 14 14 277 5 28 Trustees' fees and expenses 1 2 17 2 11 Other expenses 187 16 136 13 92 --------- --------- --------- --------- --------- Total expenses 567 855 6,049 417 2,660 --------- --------- --------- --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (398) -- (101) (151) (480) Transfer and dividend disbursing agent fees waived -- -- (12) -- (12) Distribution services-Class A Shares and Class B Shares waived -- -- -- -- -- --------- --------- --------- --------- --------- Net Expenses 169 855 5,936 266 2,168 --------- --------- --------- --------- --------- Net Investment Income/(Loss) 233 (707) 5,183 2,423 11,962 --------- --------- --------- --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, OPTIONS, FUTURES AND FOREIGN CURRENCY: Net realized gains/(losses) on investment, option and foreign currency transactions 2,473 2,359 16,142 230 (2,853) Net realized gains on futures transactions -- -- 3,059 -- -- Change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (1,483) (3,384) 64,678 (2,004) (5,788) --------- --------- --------- --------- --------- Net realized and unrealized gains/(losses) on investments, options, futures and foreign currency 990 (1,025) 83,879 (1,774) (8,641) --------- --------- --------- --------- --------- Change in net assets resulting from operations $ 1,223 $ (1,732) $ 89,062 $ 649 $ 3,321 ========= ========= ========= ========= ========= U.S. INTERMEDIATE INTERMEDIATE SHORT TERM GOVERNMENT MUNICIPAL MUNICIPAL BOND BOND BOND BOND BOND FUND (A) FUND (A) FUND (A) FUND FUND (A) ------------ ---------- ---------- --------- ------------ INVESTMENT INCOME: Interest income $ 26,246 $ 11,646 $ 2,588 $ 2,124 $ 7,942 Dividend income 494 309 124 18 38 Foreign tax withholding -- -- -- -- -- Income from securities lending 28 32 -- -- -- --------- --------- --------- --------- --------- Total Investment Income 26,768 11,987 2,712 2,142 7,980 --------- --------- --------- --------- --------- EXPENSES: Investment advisory fees 2,866 1,502 324 261 1,035 Administrative fees 921 525 103 92 339 Distribution services fees-Class A Shares 67 36 64 4 7 Distribution services fees-Class B Shares 27 NA NA 13 8 Distribution services fees-Class C Shares 7 2 17 1 1 Distribution services fees-Advisor Shares -- ^ -- ^ -- ^ 1 -- ^ Administrative services fees-Class C Shares 2 1 6 -- ^ -- ^ Accounting fees 170 103 67 77 99 Registration and filing fees 33 28 28 20 30 Transfer and dividend disbursing agent fees 140 83 27 24 54 Custody fees 35 18 8 10 20 Trustees' fees and expenses 20 11 2 2 7 Other expenses 158 91 19 17 61 --------- --------- --------- --------- --------- Total expenses 4,446 2,400 665 522 1,661 --------- --------- --------- --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (600) (354) (150) (192) (308) Transfer and dividend disbursing agent fees waived (12) (9) -- -- -- Distribution services-Class A Shares and Class B Shares waived (20) -- -- -- (6) --------- --------- --------- --------- --------- Net Expenses 3,814 2,037 515 330 1,347 --------- --------- --------- --------- --------- Net Investment Income/(Loss) 22,954 9,950 2,197 1,812 6,633 --------- --------- --------- --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, OPTIONS, FUTURES AND FOREIGN CURRENCY: Net realized gains/(losses) on investment, option and foreign currency transactions (10,643) (1,687) (205) 314 (60) Net realized gains on futures transactions -- -- -- -- -- Change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (3,876) (55) (991) (1,445) (3,858) --------- --------- --------- --------- --------- Net realized and unrealized gains/(losses) on investments, options, futures and foreign currency (14,519) (1,742) (1,196) (1,131) (3,918) --------- --------- --------- --------- --------- Change in net assets resulting from operations $ 8,435 $ 8,208 $ 1,001 $ 681 $ 2,715 ========= ========= ========= ========= ========= OHIO MICHIGAN MUNICIPAL MUNICIPAL BOND BOND FUND (A) FUND (A) --------- --------- INVESTMENT INCOME: Interest income $ 5,394 $ 2,345 Dividend income 32 15 Foreign tax withholding -- -- Income from securities lending -- -- --------- --------- Total Investment Income 5,426 2,360 --------- --------- EXPENSES: Investment advisory fees 689 302 Administrative fees 229 127 Distribution services fees-Class A Shares 62 13 Distribution services fees-Class B Shares 38 8 Distribution services fees-Class C Shares 15 2 Distribution services fees-Advisor Shares -- ^ -- ^ Administrative services fees-Class C Shares 5 1 Accounting fees 76 79 Registration and filing fees 34 20 Transfer and dividend disbursing agent fees 42 27 Custody fees 13 11 Trustees' fees and expenses 5 3 Other expenses 42 21 --------- --------- Total expenses 1,250 614 --------- --------- Less: Waiver and/or reimbursement from Advisor and/or affiliates (133) (135) Transfer and dividend disbursing agent fees waived -- -- Distribution services-Class A Shares and Class B Shares waived -- (5) --------- --------- Net Expenses 1,117 474 --------- --------- Net Investment Income/(Loss) 4,309 1,886 --------- --------- REALIZED AND UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS, OPTIONS, FUTURES AND FOREIGN CURRENCY: Net realized gains/(losses) on investment, option and foreign currency transactions (203) (247) Net realized gains on futures transactions -- -- Change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (2,512) (755) --------- --------- Net realized and unrealized gains/(losses) on investments, options, futures and foreign currency (2,715) (1,002) --------- --------- Change in net assets resulting from operations $ 1,594 $ 884 ========= =========
_____________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. (b) Formerly the Select Stock Fund. Other expenses includes $73 in legal and $105 in printing. (c) Reflects operations for the period from November 29, 2005 (date of commencement of operations) to July 31, 2006. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS 134-135 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
SMALL CAP MID CAP GROWTH FUND GROWTH FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ (1,426) $ (1,728) $ (1,152) $ (318) Net realized gains on investment and option transactions 39,940 21,831 88,879 3,529 Net realized gains/(losses) on futures transactions 257 811 -- -- Net change in unrealized appreciation/depreciation on investments, options and futures (34,296) 24,776 (70,388) 83,951 --------- --------- --------- --------- Change in net assets resulting from operations 4,475 45,690 17,339 87,162 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares -- -- (353) -- Class A Shares -- -- (17) -- Class B Shares -- -- -- -- Class C Shares -- -- -- -- Advisor Shares -- -- -- -- 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 (19,569) (39,664) (4,028) -- Class A Shares (2,500) (4,468) (479) -- Class B Shares (211) (331) (85) -- Class C Shares (74) (150) (18) -- Advisor Shares (99) (213) (13) -- --------- --------- --------- --------- Change in net assets from shareholder distributions (22,453) (44,826) (4,993) -- --------- --------- --------- --------- Change in net assets from Fund share transactions (75,185) (13,767) (95,876) (37,413) --------- --------- --------- --------- Change in net assets (93,163) (12,903) (83,530) 49,749 NET ASSETS: Beginning of period 240,224 253,127 444,542 394,793 --------- --------- --------- --------- End of period $ 147,061 $ 240,224 $ 361,012 $ 444,542 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ (10) $ (12) $ -- $ -- ========= ========= ========= ========= LARGE CAP QUALITY GROWTH FUND CORE FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 (A) 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ (2,049) $ 863 $ 2,002 $ 1,271 Net realized gains on investment and option transactions 95,193 40,777 10,681 6,423 Net realized gains/(losses) on futures transactions -- -- (163) 138 Net change in unrealized appreciation/depreciation on investments, options and futures (123,423) 71,107 (1,203) 9,054 --------- --------- --------- --------- Change in net assets resulting from operations (30,279) 112,747 11,317 16,886 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares -- (1,869) (1,749) (1,019) Class A Shares -- (341) (180) (264) Class B Shares -- (3) (2) (3) Class C Shares -- (1) -- ^ -- ^ Advisor Shares -- (4) -- ^ NA 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 -- -- (1,989) (2,094) Class A Shares -- -- (277) (656) Class B Shares -- -- (12) (21) Class C Shares -- -- (2) (4) Advisor Shares -- -- -- ^ NA --------- --------- --------- --------- Change in net assets from shareholder distributions -- (2,218) (4,211) (4,061) --------- --------- --------- --------- Change in net assets from Fund share transactions (119,709) (345,411) (13,554) 65,388 --------- --------- --------- --------- Change in net assets (149,988) (234,882) (6,448) 78,213 NET ASSETS: Beginning of period 899,888 1,134,770 194,949 116,736 --------- --------- --------- --------- End of period $ 749,900 $ 899,888 $ 188,501 $ 194,949 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ -- $ -- $ 87 $ 20 ========= ========= ========= ========= EQUITY INDEX FUND BALANCED FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 6,743 $ 8,661 $ 1,772 $ 2,720 Net realized gains on investment and option transactions 15,100 69,597 8,157 7,493 Net realized gains/(losses) on futures transactions 222 715 -- -- Net change in unrealized appreciation/depreciation on investments, options and futures (1,847) (14,823) (11,421) 3,518 --------- --------- --------- --------- Change in net assets resulting from operations 20,218 64,150 (1,492) 13,731 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (3,218) (3,630) (922) (1,594) Class A Shares (1,082) (1,253) (807) (1,180) Class B Shares (36) (42) (85) (121) Class C Shares (18) (22) (28) (44) Advisor Shares (20) (24) (2) (3) Select Shares (301) (306) NA NA Preferred Shares (1,209) (1,755) NA NA Trust Shares (1,121) (1,348) NA NA Distributions from net realized gains: Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class B Shares -- -- -- -- Class C Shares -- -- -- -- Advisor Shares -- -- -- -- --------- --------- --------- --------- Change in net assets from shareholder distributions (7,005) (8,380) (1,844) (2,942) --------- --------- --------- --------- Change in net assets from Fund share transactions (25,827) (170,144) (48,640) (66,996) --------- --------- --------- --------- Change in net assets (12,614) (114,374) (51,976) (56,207) NET ASSETS: Beginning of period 420,285 534,659 134,330 190,537 --------- --------- --------- --------- End of period $ 407,671 $ 420,285 $ 82,354 $ 134,330 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 434 $ 697 $ 134 $ 122 ========= ========= ========= ========= MICRO CAP VALUE FUND --------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 2005 --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 20 $ (404) Net realized gains on investment and option transactions 41,836 37,827 Net realized gains/(losses) on futures transactions -- -- Net change in unrealized appreciation/depreciation on investments, options and futures (39,004) (9,592) --------- --------- Change in net assets resulting from operations 2,852 27,831 --------- --------- Distributions from net investment income: Institutional Shares (84) -- Class A Shares (7) -- Class B Shares -- -- Class C Shares -- -- Advisor Shares -- -- Select Shares NA NA Preferred Shares NA NA Trust Shares NA NA Distributions from net realized gains: Institutional Shares (26,630) (9,983) Class A Shares (5,289) (2,822) Class B Shares (2,148) (486) Class C Shares (1,672) (404) Advisor Shares (6,413) (2,794) --------- --------- Change in net assets from shareholder distributions (42,243) (16,489) --------- --------- Change in net assets from Fund share transactions (18,958) (85,038) --------- --------- Change in net assets (58,349) (73,696) NET ASSETS: Beginning of period 177,579 251,275 --------- --------- End of period $ 119,230 $ 177,579 ========= ========= Accumulated Net Investment Income/(Loss) $ -- $ -- ========= =========
_________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS 136-137 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
SMALL CAP VALUE FUND MULTI CAP VALUE FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 488 $ (315) $ 2,902 $ 928 Net realized gains/(losses) on investment transactions 20,068 12,474 67,055 24,985 Realized gain distributions from underlying funds -- -- -- -- Net change in unrealized appreciation/depreciation on investments (18,289) 18,099 (43,868) 46,090 --------- --------- --------- --------- Change in net assets resulting from operations 2,267 30,258 26,089 72,003 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (288) -- (2,147) (1,146) Class A Shares -- -- (275) (74) Class B Shares -- -- (53) -- Class C Shares -- -- (10) -- Advisor Shares -- -- (162) (14) Distributions from net realized gains: Institutional Shares (13,847) (10,543) (19,664) (15,051) Class A Shares (285) (219) (3,250) (2,088) Class B Shares (135) (60) (1,866) (1,156) Class C Shares (105) (46) (392) (289) Advisor Shares (147) (140) (2,894) (2,387) --------- --------- --------- --------- Change in net assets from shareholder distributions (14,807) (11,008) (30,713) (22,205) --------- --------- --------- --------- Change in net assets from Fund share transactions (30,546) 33,727 (50,529) (1,733) --------- --------- --------- --------- Change in net assets (43,086) 52,977 (55,153) 48,065 NET ASSETS: Beginning of period 165,268 112,291 379,051 330,986 --------- --------- --------- --------- End of period $ 122,182 $ 165,268 $ 323,898 $ 379,051 ========= ========= ========= ========= Accumulated Net Investment Income $ 200 $ -- $ 255 $ -- ========= ========= ========= ========= DISCIPLINED LARGE CAP LIFEMODEL VALUE FUND AGGRESSIVE FUND SM ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 (A) 2005 2006 (A) 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 8,363 $ 8,216 $ 1,846 $ 1,123 Net realized gains/(losses) on investment transactions 88,966 52,351 (82)+ 637 + Realized gain distributions from underlying funds -- -- 5,088 2,976 Net change in unrealized appreciation/depreciation on investments (44,459) 37,251 (259) 14,201 --------- --------- --------- --------- Change in net assets resulting from operations 52,870 97,818 6,593 18,937 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (7,875) (7,923) (1,151) (680) Class A Shares (266) (241) (540) (374) Class B Shares (24) (14) (115) (72) Class C Shares (9) (6) (16) (9) Advisor Shares (2) NA (1) NA Distributions from net realized gains: Institutional Shares (54,494) (16,850) (1,714) (346) Class A Shares (2,337) (655) (1,043) (248) Class B Shares (541) (134) (349) (81) Class C Shares (222) (57) (48) (11) Advisor Shares (16) NA (1) NA --------- --------- --------- --------- Change in net assets from shareholder distributions (65,786) (25,880) (4,978) (1,821) --------- --------- --------- --------- Change in net assets from Fund share transactions 18,441 (125,327) 34,927 14,139 --------- --------- --------- --------- Change in net assets 5,525 (53,389) 36,542 31,255 NET ASSETS: Beginning of period 607,108 660,497 135,611 104,356 --------- --------- --------- --------- End of period $ 612,633 $ 607,108 $ 172,153 $ 135,611 ========= ========= ========= ========= Accumulated Net Investment Income $ 711 $ 524 $ 23 $ -- ========= ========= ========= ========= LIFEMODEL MODERATELY LIFEMODEL AGGRESSIVE FUND SM MODERATE FUND SM ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 (A) 2005 2006 (A) 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 5,684 $ 3,460 $ 12,348 $ 9,811 Net realized gains/(losses) on investment transactions 12 + 1,446 + 703 + 2,848 + Realized gain distributions from underlying funds 8,409 4,937 10,525 7,386 Net change in unrealized appreciation/depreciation on investments (1,747) 23,784 (6,444) 28,761 --------- --------- --------- --------- Change in net assets resulting from operations 12,358 33,627 17,132 48,806 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (2,542) (1,539) (8,669) (7,125) Class A Shares (2,296) (1,532) (2,511) (1,978) Class B Shares (563) (276) (733) (479) Class C Shares (93) (52) (120) (88) Advisor Shares (10) NA (4) NA Distributions from net realized gains: Institutional Shares (2,273) (537) (6,249) (768) Class A Shares (2,490) (650) (2,006) (240) Class B Shares (996) (257) (828) (93) Class C Shares (172) (50) (142) (17) Advisor Shares (5) NA (2) NA --------- --------- --------- --------- Change in net assets from shareholder distributions (11,440) (4,893) (21,264) (10,788) --------- --------- --------- --------- Change in net assets from Fund share transactions 31,606 41,124 26,544 2,644 --------- --------- --------- --------- Change in net assets 32,524 69,858 22,412 40,662 NET ASSETS: Beginning of period 294,543 224,685 498,230 457,568 --------- --------- --------- --------- End of period $ 327,067 $ 294,543 $ 520,642 $ 498,230 ========= ========= ========= ========= Accumulated Net Investment Income $ 323 $ 143 $ 939 $ 628 ========= ========= ========= ========= LIFEMODEL MODERATELY CONSERVATIVE FUND SM --------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 (A) 2005 --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 2,836 $ 2,245 Net realized gains/(losses) on investment transactions 1,257 + 794 + Realized gain distributions from underlying funds 1,770 1,270 Net change in unrealized appreciation/depreciation on investments (2,737) 4,723 --------- --------- Change in net assets resulting from operations 3,126 9,032 --------- --------- Distributions from net investment income: Institutional Shares (1,189) (970) Class A Shares (1,076) (878) Class B Shares (434) (321) Class C Shares (70) (51) Advisor Shares (2) NA Distributions from net realized gains: Institutional Shares (888) (301) Class A Shares (940) (307) Class B Shares (522) (173) Class C Shares (84) (27) Advisor Shares (1) NA --------- --------- Change in net assets from shareholder distributions (5,206) (3,028) --------- --------- Change in net assets from Fund share transactions (983) (2,817) --------- --------- Change in net assets (3,063) 3,187 NET ASSETS: Beginning of period 106,833 103,646 --------- --------- End of period $ 103,770 $ 106,833 ========= ========= Accumulated Net Investment Income $ 218 $ 153 ========= =========
___________________________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. + Represents realized gains/(losses) from investment transactions with affiliates. SEE NOTES TO FINANCIAL STATEMENTS 138-139 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
LIFEMODEL STRATEGIC CONSERVATIVE FUND SM INCOME FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 1,918 $ 1,530 $ 6,795 $ 7,124 Net realized gains/(losses) on investment, option, and foreign currency transactions 503 + (11) + 1,927 481 Net realized gains on futures transactions -- -- -- -- Realized gain distributions from underlying funds 631 544 -- -- Net change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (1,657) 1,359 (5,228) 5,346 --------- --------- --------- --------- Change in net assets resulting from operations 1,395 3,422 3,494 12,951 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (870) (500) (4,619) (4,198) Class A Shares (615) (620) (218) (110) Class B Shares (295) (264) (69) (36) Class C Shares (109) (111) (861) (1,191) Advisor Shares (1) NA (1,065) (1,483) Distributions from net realized gains: Institutional Shares (234) (132) (297) (67) Class A Shares (188) (197) (15) (2) Class B Shares (117) (118) (6) (1) Class C Shares (46) (52) (74) (26) Advisor Shares -- ^ NA (80) (28) --------- --------- --------- --------- Change in net assets from shareholder distributions (2,475) (1,994) (7,304) (7,142) --------- --------- --------- --------- Change in net assets from Fund share transactions (4,570) 4,065 (8,104) (11,467) --------- --------- --------- --------- Change in net assets (5,650) 5,493 (11,914) (5,658) NET ASSETS: Beginning of period 60,242 54,749 165,960 171,618 --------- --------- --------- --------- End of period $ 54,592 $ 60,242 $ 154,046 $ 165,960 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 156 $ 128 $ (100) $ (63) ========= ========= ========= ========= DIVIDEND GROWTH FUND ------------------------ YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 (a) (b) 2005 ----------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 233 $ (142) Net realized gains/(losses) on investment, option, and foreign currency transactions 2,473 245 Net realized gains on futures transactions -- -- Realized gain distributions from underlying funds -- -- Net change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (1,483) 1,776 ----------- --------- Change in net assets resulting from operations 1,223 1,879 ----------- --------- Distributions from net investment income: Institutional Shares (178) -- Class A Shares (53) -- Class B Shares (3) -- Class C Shares (3) -- Advisor Shares -- ^ NA Distributions from net realized gains: Institutional Shares -- -- Class A Shares -- -- Class B Shares -- -- Class C Shares -- -- Advisor Shares -- NA ----------- --------- Change in net assets from shareholder distributions (237) -- ----------- --------- Change in net assets from Fund share transactions 6,329 (5,570) ----------- --------- Change in net assets 7,315 (3,691) NET ASSETS: Beginning of period 13,887 17,578 ----------- --------- End of period $ 21,202 $ 13,887 =========== ========= Accumulated Net Investment Income/(Loss) $ -- $ -- =========== ========= INTERNATIONAL TECHNOLOGY FUND EQUITY FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ (707) $ (699) $ 5,183 $ 4,228 Net realized gains/(losses) on investment, option, and foreign currency transactions 2,359 3,738 16,142 23,657 Net realized gains on futures transactions -- -- 3,059 1,695 Realized gain distributions from underlying funds -- -- -- -- Net change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (3,384) 4,482 64,678 34,124 --------- --------- --------- --------- Change in net assets resulting from operations (1,732) 7,521 89,062 63,704 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares -- -- (6,678) (6,672) Class A Shares -- -- (320) (407) Class B Shares -- -- (14) (10) Class C Shares -- -- (10) (7) Advisor Shares -- -- (102) (186) Distributions from net realized gains: Institutional Shares -- -- (9,322) -- Class A Shares -- -- (525) -- Class B Shares -- -- (36) -- Class C Shares -- -- (26) -- Advisor Shares -- -- (231) -- --------- --------- --------- --------- Change in net assets from shareholder distributions -- -- (17,264) (7,282) --------- --------- --------- --------- Change in net assets from Fund share transactions 10,315 (9,010) 85,787 (100,439) --------- --------- --------- --------- Change in net assets 8,583 (1,489) 157,585 (44,017) NET ASSETS: Beginning of period 46,629 48,118 317,542 361,559 --------- --------- --------- --------- End of period $ 55,212 $ 46,629 $ 475,127 $ 317,542 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ -- $ -- $ 1,428 $ 4,804 ========= ========= ========= ========= HIGH YIELD BOND FUND BOND FUND ---------- ---------------------- PERIOD YEAR YEAR ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, 2006 (c) 2006 2005 ---------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income/(loss) $ 2,423 $ 11,962 $ 9,498 Net realized gains/(losses) on investment, option, and foreign currency transactions 230 (2,853) 6,278 Net realized gains on futures transactions -- -- -- Realized gain distributions from underlying funds -- -- -- Net change in unrealized appreciation/depreciation on investments, options, futures and foreign currency (2,004) (5,788) (2,694) ---------- --------- --------- Change in net assets resulting from operations 649 3,321 13,082 ---------- --------- --------- Distributions from net investment income: Institutional Shares (2,421) (12,002) (10,012) Class A Shares (7) (581) (669) Class B Shares (2) (107) (114) Class C Shares (2) (16) (19) Advisor Shares -- ^ (16) (22) Distributions from net realized gains: Institutional Shares -- (1,723) (317) Class A Shares -- (89) (26) Class B Shares -- (19) (5) Class C Shares -- (3) (1) Advisor Shares -- (3) (1) ---------- --------- --------- Change in net assets from shareholder distributions (2,432) (14,559) (11,186) ---------- --------- --------- Change in net assets from Fund share transactions 68,204 (34,827) 5,001 ---------- --------- --------- Change in net assets 66,421 (46,065) 6,897 NET ASSETS: Beginning of period -- 313,097 306,200 ---------- --------- --------- End of period $ 66,421 $ 267,032 $ 313,097 ========== ========= ========= Accumulated Net Investment Income/(Loss) $ 22 $ 27 $ 48 ========== ========= =========
___________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. (b) Formerly the Select Stock Fund. (c) Reflects operations for the period from November 29, 2005 (date of commencement of operations) to July 31, 2006. + Represents realized gains/(losses) from investment transactions with affiliates. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS 140-141 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
INTERMEDIATE SHORT TERM BOND FUND BOND FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 (a) 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 22,954 $ 23,267 $ 9,950 $ 11,175 Net realized gains/(losses) on investment transactions (10,643) 4,672 (1,687) (3,173) Net change in unrealized appreciation/depreciation on investments (3,876) (8,592) (55) (2,091) --------- --------- --------- --------- Change in net assets resulting from operations 8,435 19,347 8,208 5,911 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (22,657) (25,017) (11,345) (15,030) Class A Shares (1,162) (1,343) (541) (726) Class B Shares (118) (146) NA NA Class C Shares (34) (44) (7) (11) Advisor Shares -- ^ NA -- ^ 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 (23,971) (26,550) (11,893) (15,767) --------- --------- --------- --------- Change in net assets from Fund share transactions (95,752) (133,932) (76,710) (162,815) --------- --------- --------- --------- Change in net assets (111,288) (141,135) (80,395) (172,671) NET ASSETS: Beginning of period 578,311 719,446 351,388 524,059 --------- --------- --------- --------- End of period $ 467,023 $ 578,311 $ 270,993 $ 351,388 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 69 $ 59 $ 15 $ 63 ========= ========= ========= ========= U.S. GOVERNMENT BOND FUND ---------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 (a) 2005 --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 2,197 $ 1,915 Net realized gains/(losses) on investment transactions (205) 519 Net change in unrealized appreciation/depreciation on investments (991) (744) --------- --------- Change in net assets resulting from operations 1,001 1,690 --------- --------- Distributions from net investment income: Institutional Shares (1,092) (1,002) Class A Shares (848) (725) Class B Shares NA NA Class C Shares (58) (63) Advisor Shares -- ^ NA Distributions from net realized gains: Institutional Shares (79) -- Class A Shares (68) -- Class B Shares NA NA Class C Shares (6) -- Advisor Shares -- ^ NA --------- --------- Change in net assets from shareholder distributions (2,151) (1,790) --------- --------- Change in net assets from Fund share transactions (7,677) (15,817) --------- --------- Change in net assets (8,827) (15,917) NET ASSETS: Beginning of period 63,304 79,221 --------- --------- End of period $ 54,477 $ 63,304 ========= ========= Accumulated Net Investment Income/(Loss) $ 154 $ 96 ========= ========= INTERMEDIATE MUNICIPAL MUNICIPAL BOND FUND BOND FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 (a) 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 1,812 $ 2,203 $ 6,633 $ 8,041 Net realized gains/(losses) on investment transactions 314 2,624 (60) 3,539 Net change in unrealized appreciation/depreciation on investments (1,445) (2,137) (3,858) (4,799) --------- --------- --------- --------- Change in net assets resulting from operations 681 2,690 2,715 6,781 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (1,688) (2,063) (6,495) (9,070) Class A Shares (55) (72) (93) (134) Class B Shares (36) (44) (24) (41) Class C Shares (4) (9) (3) (7) Advisor Shares (10) (14) -- ^ NA Distributions from net realized gains: Institutional Shares (2,037) (2,066) (2,353) (1,780) Class A Shares (70) (89) (36) (30) Class B Shares (65) (59) (11) (9) Class C Shares (8) (16) (2) (2) Advisor Shares (16) (17) -- ^ NA --------- --------- --------- --------- Change in net assets from shareholder distributions (3,989) (4,449) (9,017) (11,073) --------- --------- --------- --------- Change in net assets from Fund share transactions (7,998) (7,190) (35,350) (47,562) --------- --------- --------- --------- Change in net assets (11,306) (8,949) (41,652) (51,854) NET ASSETS: Beginning of period 53,475 62,424 209,286 261,140 --------- --------- --------- --------- End of period $ 42,169 $ 53,475 $ 167,634 $ 209,286 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 12 $ -- $ 15 $ 8 ========= ========= ========= ========= OHIO MUNICIPAL MICHIGAN MUNICIPAL BOND FUND BOND FUND ---------------------- ---------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 (a) 2005 --------- --------- --------- --------- CHANGE IN NET ASSETS: OPERATIONS: Net investment income $ 4,309 $ 5,034 $ 1,886 $ 2,600 Net realized gains/(losses) on investment transactions (203) 616 (247) 97 Net change in unrealized appreciation/depreciation on investments (2,512) (1,635) (755) (1,219) --------- --------- --------- --------- Change in net assets resulting from operations 1,594 4,015 884 1,478 --------- --------- --------- --------- Distributions from net investment income: Institutional Shares (3,375) (3,881) (1,725) (2,418) Class A Shares (812) (872) (136) (150) Class B Shares (100) (109) (15) (23) Class C Shares (48) (94) (5) (14) Advisor Shares -- ^ NA -- ^ NA Distributions from net realized gains: Institutional Shares (240) (857) -- (120) Class A Shares (63) (200) -- (8) Class B Shares (10) (33) -- (2) Class C Shares (4) (29) -- (1) Advisor Shares -- ^ NA -- NA --------- --------- --------- --------- Change in net assets from shareholder distributions (4,652) (6,075) (1,881) (2,736) --------- --------- --------- --------- Change in net assets from Fund share transactions (24,071) (19,764) (23,235) (34,329) --------- --------- --------- --------- Change in net assets (27,129) (21,824) (24,232) (35,587) NET ASSETS: Beginning of period 140,523 162,347 80,436 116,023 --------- --------- --------- --------- End of period $ 113,394 $ 140,523 $ 56,204 $ 80,436 ========= ========= ========= ========= Accumulated Net Investment Income/(Loss) $ 6 $ 72 $ 2 $ -- ========= ========= ========= =========
____________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS 142-143 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND QUALITY GROWTH FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 2006 2005 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 13,485 $ 54,748 $ 46,492 $ 80,245 $ 117,271 $ 151,799 Dividends reinvested 19,476 39,477 4,159 -- -- 694 Shares redeemed (104,269) (104,594) (136,084) (98,890) (183,406) (414,863) --------- --------- --------- --------- --------- --------- Total Institutional Shares (71,308) (10,369) (85,433) (18,645) (66,135) (262,370) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 2,925 1,881 2,329 3,564 3,847 6,110 Dividends reinvested 2,452 4,334 487 -- -- 321 Shares redeemed (8,398) (9,484) (11,762) (20,717) (50,363) (81,333) --------- --------- --------- --------- --------- --------- Total Class A Shares (3,021) (3,269) (8,946) (17,153) (46,516) (74,902) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 66 233 647 517 508 607 Dividends reinvested 201 320 80 -- -- 2 Shares redeemed (490) (523) (1,253) (1,730) (4,375) (5,664) --------- --------- --------- --------- --------- --------- Total Class B Shares (223) 30 (526) (1,213) (3,867) (5,055) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 60 34 231 255 187 299 Dividends reinvested 68 117 18 -- -- 1 Shares redeemed (315) (324) (783) (701) (2,073) (3,196) --------- --------- --------- --------- --------- --------- Total Class C Shares (187) (173) (534) (446) (1,886) (2,896) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 49 123 224 267 595 546 Dividends reinvested 90 213 9 -- -- 4 Shares redeemed (585) (322) (670) (223) (1,900) (738) --------- --------- --------- --------- --------- --------- Total Advisor Shares (446) 14 (437) 44 (1,305) (188) --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Select Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (75,185) $ (13,767) $ (95,876) $ (37,413) $(119,709) $(345,411) ========= ========= ========= ========= ========= ========= LARGE CAP CORE FUND EQUITY INDEX FUND BALANCED FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 2005 2006 2005 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 16,964 $ 100,722 $ 82,440 $ 52,844 $ 4,152 $ 7,356 Dividends reinvested 2,159 2,375 2,686 2,884 818 1,433 Shares redeemed (28,562) (33,811) (74,461) (102,652) (27,677) (52,487) --------- --------- --------- --------- --------- --------- Total Institutional Shares (9,439) 69,286 10,665 (46,924) (22,707) (43,698) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 1,337 2,862 9,892 8,770 1,014 3,084 Dividends reinvested 435 889 1,048 1,216 783 1,148 Shares redeemed (5,713) (7,801) (18,395) (20,648) (22,227) (23,632) --------- --------- --------- --------- --------- --------- Total Class A Shares (3,941) (4,050) (7,455) (10,662) (20,430) (19,400) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 144 366 491 956 164 320 Dividends reinvested 10 23 29 36 82 117 Shares redeemed (244) (254) (840) (821) (3,380) (3,366) --------- --------- --------- --------- --------- --------- Total Class B Shares (90) 135 (320) 171 (3,134) (2,929) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 72 36 506 937 113 221 Dividends reinvested 2 4 14 19 28 43 Shares redeemed (161) (23) (903) (889) (2,452) (1,230) --------- --------- --------- --------- --------- --------- Total Class C Shares (87) 17 (383) 67 (2,311) (966) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 3 NA 932 788 15 31 Dividends reinvested --^ NA 17 22 2 3 Shares redeemed -- NA (1,100) (352) (75) (37) --------- --------- --------- --------- --------- --------- Total Advisor Shares 3 NA (151) 458 (58) (3) --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA 4,805 5,010 NA NA Dividends reinvested NA NA 237 235 NA NA Shares redeemed NA NA (6,577) (2,666) NA NA --------- --------- --------- --------- --------- --------- Total Select Shares NA NA (1,535) 2,579 NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA 13,177 13,120 NA NA Dividends reinvested NA NA 1,151 1,695 NA NA Shares redeemed NA NA (30,070) (117,426) NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA (15,742) (102,611) NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA 2,558 23,837 NA NA Dividends reinvested NA NA 206 190 NA NA Shares redeemed NA NA (13,670) (37,249) NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA (10,906) (13,222) NA NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (13,554) $ 65,388 $ (25,827) $(170,144) $ (48,640) $ (66,996) ========= ========= ========= ========= ========= ========= MICRO CAP VALUE FUND ---------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 2005 --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 20,739 $ 9,452 Dividends reinvested 25,967 9,657 Shares redeemed (48,158) (82,599) --------- --------- Total Institutional Shares (1,452) (63,490) --------- --------- Class A Shares Shares issued 6,881 1,651 Dividends reinvested 4,993 2,394 Shares redeemed (18,229) (18,230) --------- --------- Total Class A Shares (6,355) (14,185) --------- --------- Class B Shares Shares issued 554 261 Dividends reinvested 2,023 480 Shares redeemed (1,862) (744) --------- --------- Total Class B Shares 715 (3) --------- --------- Class C Shares Shares issued 1,741 1,306 Dividends reinvested 1,557 371 Shares redeemed (2,665) (1,504) --------- --------- Total Class C Shares 633 173 --------- --------- Advisor Shares Shares issued 1,834 3,832 Dividends reinvested 5,916 2,517 Shares redeemed (20,249) (13,882) --------- --------- Total Advisor Shares (12,499) (7,533) --------- --------- 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 --------- --------- Change from capital transactions $ (18,958) $ (85,038) ========= =========
_____________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars. SEE NOTES TO FINANCIAL STATEMENTS 144-145 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND MID CAP GROWTH FUND QUALITY GROWTH FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 2006 2005 --------- --------- --------- --------- --------- --------- SHARE TRANSACTIONS: Institutional Shares Shares issued 912 3,582 2,731 5,611 7,148 10,164 Dividends reinvested 1,403 2,753 251 -- -- 46 Shares redeemed (7,052) (7,034) (8,277) (7,004) (11,117) (27,268) --------- --------- --------- --------- --------- --------- Total Institutional Shares (4,737) (699) (5,295) (1,393) (3,969) (17,058) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 199 129 140 255 235 417 Dividends reinvested 182 310 30 -- -- 22 Shares redeemed (575) (649) (712) (1,481) (3,090) (5,468) --------- --------- --------- --------- --------- --------- Total Class A Shares (194) (210) (542) (1,226) (2,855) (5,029) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 4 16 41 39 32 43 Dividends reinvested 15 23 5 -- -- -- ^ Shares redeemed (34) (36) (80) (129) (279) (395) --------- --------- --------- --------- --------- --------- Total Class B Shares (15) 3 (34) (90) (247) (352) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 4 2 15 20 13 21 Dividends reinvested 5 8 1 -- -- -- ^ Shares redeemed (22) (22) (51) (52) (136) (228) --------- --------- --------- --------- --------- --------- Total Class C Shares (13) (12) (35) (32) (123) (207) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 2 9 14 18 38 36 Dividends reinvested 7 15 1 -- -- -- ^ Shares redeemed (39) (22) (42) (16) (119) (50) --------- --------- --------- --------- --------- --------- Total Advisor Shares (30) 2 (27) 2 (81) (14) --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Select Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA NA NA NA NA Dividends reinvested NA NA NA NA NA NA Shares redeemed NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA NA NA NA NA --------- --------- --------- --------- --------- --------- Change from share transactions (4,989) (916) (5,933) (2,739) (7,275) (22,660) ========= ========= ========= ========= ========= ========= LARGE CAP CORE FUND EQUITY INDEX FUND BALANCED FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 2005 2006 2005 --------- --------- --------- --------- --------- --------- SHARE TRANSACTIONS: Institutional Shares Shares issued 1,143 7,053 3,433 2,347 327 589 Dividends reinvested 146 171 112 128 65 114 Shares redeemed (1,923) (2,437) (3,119) (4,521) (2,178) (4,211) --------- --------- --------- --------- --------- --------- Total Institutional Shares (634) 4,787 426 (2,046) (1,786) (3,508) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 91 212 418 402 80 249 Dividends reinvested 30 65 44 54 62 92 Shares redeemed (389) (571) (768) (934) (1,767) (1,901) --------- --------- --------- --------- --------- --------- Total Class A Shares (268) (294) (306) (478) (1,625) (1,560) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 9 26 21 43 12 26 Dividends reinvested 1 2 1 2 7 9 Shares redeemed (16) (18) (35) (37) (270) (275) --------- --------- --------- --------- --------- --------- Total Class B Shares (6) 10 (13) 8 (251) (240) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 6 3 21 43 10 18 Dividends reinvested -- ^ -- ^ 1 1 2 4 Shares redeemed (11) (2) (38) (40) (196) (102) --------- --------- --------- --------- --------- --------- Total Class C Shares (5) 1 (16) 4 (184) (80) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued -- ^ NA 38 36 1 3 Dividends reinvested -- ^ NA 1 1 -- ^ -- ^ Shares redeemed -- NA (47) (16) (6) (3) --------- --------- --------- --------- --------- --------- Total Advisor Shares -- ^ NA (8) 21 (5) -- ^ --------- --------- --------- --------- --------- --------- Select Shares Shares issued NA NA 200 224 NA NA Dividends reinvested NA NA 10 10 NA NA Shares redeemed NA NA (282) (119) NA NA --------- --------- --------- --------- --------- --------- Total Select Shares NA NA (72) 115 NA NA --------- --------- --------- --------- --------- --------- Preferred Shares Shares issued NA NA 550 584 NA NA Dividends reinvested NA NA 48 76 NA NA Shares redeemed NA NA (1,250) (5,222) NA NA --------- --------- --------- --------- --------- --------- Total Preferred Shares NA NA (652) (4,562) NA NA --------- --------- --------- --------- --------- --------- Trust Shares Shares issued NA NA 107 1,052 NA NA Dividends reinvested NA NA 9 8 NA NA Shares redeemed NA NA (573) (1,651) NA NA --------- --------- --------- --------- --------- --------- Total Trust Shares NA NA (457) (591) NA NA --------- --------- --------- --------- --------- --------- Change from share transactions (913) 4,504 (1,098) (7,529) (3,851) (5,388) ========= ========= ========= ========= ========= ========= MICRO CAP VALUE FUND ---------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 2005 --------- --------- SHARE TRANSACTIONS: Institutional Shares Shares issued 2,122 893 Dividends reinvested 3,250 915 Shares redeemed (5,287) (7,924) --------- --------- Total Institutional Shares 85 6,116 --------- --------- Class A Shares Shares issued 808 164 Dividends reinvested 644 231 Shares redeemed (1,881) (1,771) --------- --------- Total Class A Shares (429) (1,376) --------- --------- Class B Shares Shares issued 62 27 Dividends reinvested 269 47 Shares redeemed (224) (75) --------- --------- Total Class B Shares 107 (1) --------- --------- Class C Shares Shares issued 208 128 Dividends reinvested 207 37 Shares redeemed (310) (148) --------- --------- Total Class C Shares 105 17 --------- --------- Advisor Shares Shares issued 210 390 Dividends reinvested 770 245 Shares redeemed (2,102) (1,385) --------- --------- Total Advisor Shares (1,122) (750) --------- --------- 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 --------- --------- Change from share transactions (1,254) (8,226) ========= =========
_____________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred shares. SEE NOTES TO FINANCIAL STATEMENTS 146-147 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
DISCIPLINED LARGE CAP SMALL CAP VALUE FUND MULTI CAP VALUE FUND VALUE FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 2006 (a) 2005 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 24,440 $ 55,220 $ 31,770 $ 66,947 $ 100,135 $ 82,591 Dividends reinvested 14,091 10,515 19,731 15,107 54,710 18,198 Shares redeemed (68,554) (33,029) (92,103) (82,530) (135,385) (227,228) --------- --------- --------- --------- --------- --------- Total Institutional Shares (30,023) 32,706 (40,602) (476) 19,460 (126,439) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 651 1,102 5,613 9,858 3,805 7,203 Dividends reinvested 234 184 3,111 1,951 2,217 802 Shares redeemed (946) (1,186) (9,066) (10,763) (7,307) (7,514) --------- --------- --------- --------- --------- --------- Total Class A Shares (61) 100 (342) 1,046 (1,285) 491 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 271 599 1,808 2,803 718 1,398 Dividends reinvested 98 55 1,798 1,133 443 139 Shares redeemed (176) (137) (3,853) (3,229) (1,008) (1,172) --------- --------- --------- --------- --------- --------- Total Class B Shares 193 517 (247) 707 153 365 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 139 474 1,523 2,020 390 708 Dividends reinvested 93 44 312 213 175 56 Shares redeemed (233) (256) (1,857) (2,078) (603) (508) --------- --------- --------- --------- --------- --------- Total Class C Shares (1) 262 (22) 155 (38) 256 --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 289 344 2,398 1,914 177 NA Dividends reinvested 124 129 2,973 2,263 11 NA Shares redeemed (1,067) (331) (14,687) (7,342) (37) NA --------- --------- --------- --------- --------- --------- Total Advisor Shares (654) 142 (9,316) (3,165) 151 NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (30,546) $ 33,727 $ (50,529) $ (1,733) $ 18,441 $(125,327) ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 1,137 2,646 1,243 2,739 6,842 5,849 Dividends reinvested 688 529 813 634 3,972 1,295 Shares redeemed (3,193) (1,594) (3,624) (3,414) (9,395) (15,801) --------- --------- --------- --------- --------- --------- Total Institutional Shares (1,368) 1,581 (1,568) (41) 1,419 (8,657) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 29 54 222 415 262 509 Dividends reinvested 12 9 129 83 161 57 Shares redeemed (44) (57) (357) (450) (507) (528) --------- --------- --------- --------- --------- --------- Total Class A Shares (3) 6 (6) 48 (84) 38 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 13 30 74 121 49 97 Dividends reinvested 5 3 77 49 32 10 Shares redeemed (8) (7) (157) (140) (69) (82) --------- --------- --------- --------- --------- --------- Total Class B Shares 10 26 (6) 30 12 25 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 6 24 62 86 27 50 Dividends reinvested 5 2 13 9 13 4 Shares redeemed (11) (12) (75) (88) (42) (36) --------- --------- --------- --------- --------- --------- Total Class C Shares -- ^ 14 -- ^ 7 (2) 18 --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 14 16 95 81 12 NA Dividends reinvested 6 7 124 96 1 NA Shares redeemed (50) (16) (581) (308) (3) NA --------- --------- --------- --------- --------- --------- Total Advisor Shares (30) 7 (362) (131) 10 NA --------- --------- --------- --------- --------- --------- Change from share transactions (1,391) 1,634 (1,942) (87) 1,355 (8,576) ========= ========= ========= ========= ========= ========= LIFEMODEL LIFEMODEL MODERATELY LIFEMODEL AGGRESSIVE FUND SM AGGRESSIVE FUND SM MODERATE FUND SM ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 (a) 2005 2006 (a) 2005 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 53,193 $ 24,902 $ 51,733 $ 35,699 $ 126,383 $ 62,059 Dividends reinvested 2,838 1,014 4,701 2,008 14,667 7,796 Shares redeemed (25,510) (16,721) (31,436) (20,044) (108,380) (70,750) --------- --------- --------- --------- --------- --------- Total Institutional Shares 30,521 9,195 24,998 17,663 32,670 (895) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 13,302 13,179 28,416 37,035 21,112 31,945 Dividends reinvested 1,481 607 4,428 2,109 4,236 2,162 Shares redeemed (12,216) (10,978) (29,928) (21,154) (30,023) (34,525) --------- --------- --------- --------- --------- --------- Total Class A Shares 2,567 2,808 2,916 17,990 (4,675) (418) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 2,974 4,444 9,238 11,955 6,180 9,857 Dividends reinvested 413 148 1,457 518 1,437 543 Shares redeemed (2,820) (2,442) (7,487) (7,064) (8,128) (6,313) --------- --------- --------- --------- --------- --------- Total Class B Shares 567 2,150 3,208 5,409 (511) 4,087 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 1,133 761 1,836 3,453 1,414 3,077 Dividends reinvested 54 20 232 98 214 93 Shares redeemed (709) (795) (2,972) (3,489) (2,994) (3,300) --------- --------- --------- --------- --------- --------- Total Class C Shares 478 (14) (904) 62 (1,366) (130) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 796 NA 1,399 NA 430 NA Dividends reinvested 1 NA 13 NA 5 NA Shares redeemed (3) NA (24) NA (9) NA --------- --------- --------- --------- --------- --------- Total Advisor Shares 794 NA 1,388 NA 426 NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ 34,927 $ 14,139 $ 31,606 $ 41,124 $ 26,544 $ 2,644 ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 3,631 1,868 3,669 2,705 10,098 5,175 Dividends reinvested 197 75 339 152 1,183 647 Shares redeemed (1,756) (1,234) (2,248) (1,513) (8,678) (5,880) --------- --------- --------- --------- --------- --------- Total Institutional Shares 2,072 709 1,760 1,344 2,603 (58) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 910 1,002 2,023 2,859 1,684 2,680 Dividends reinvested 103 45 320 160 342 179 Shares redeemed (839) (824) (2,141) (1,610) (2,400) (2,883) --------- --------- --------- --------- --------- --------- Total Class A Shares 174 223 202 1,409 (374) (24) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 208 342 660 925 496 832 Dividends reinvested 29 11 106 39 117 45 Shares redeemed (199) (187) (537) (542) (655) (529) --------- --------- --------- --------- --------- --------- Total Class B Shares 38 166 229 422 (42) 348 --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 79 59 132 266 115 258 Dividends reinvested 4 1 17 7 17 8 Shares redeemed (50) (62) (212) (268) (241) (278) --------- --------- --------- --------- --------- --------- Total Class C Shares 33 (2) (63) 5 (109) (12) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 54 NA 99 NA 35 NA Dividends reinvested -- ^ NA 1 NA -- ^ NA Shares redeemed -- ^ NA (2) NA (1) NA --------- --------- --------- --------- --------- --------- Total Advisor Shares 54 NA 98 NA 34 NA --------- --------- --------- --------- --------- --------- Change from share transactions 2,371 1,096 2,226 3,180 2,112 254 ========= ========= ========= ========= ========= ========= LIFEMODEL MODERATELY CONSERVATIVE FUND SM ---------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 (a) 2005 --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 13,916 $ 9,260 Dividends reinvested 1,999 1,221 Shares redeemed (11,056) (12,191) --------- --------- Total Institutional Shares 4,859 (1,710) --------- --------- Class A Shares Shares issued 8,301 8,736 Dividends reinvested 1,872 1,130 Shares redeemed (13,338) (11,563) --------- --------- Total Class A Shares (3,165) (1,697) --------- --------- Class B Shares Shares issued 1,693 4,612 Dividends reinvested 874 462 Shares redeemed (4,403) (4,725) --------- --------- Total Class B Shares (1,836) 349 --------- --------- Class C Shares Shares issued 490 1,608 Dividends reinvested 130 72 Shares redeemed (1,524) (1,439) --------- --------- Total Class C Shares (904) 241 --------- --------- Advisor Shares Shares issued 65 NA Dividends reinvested 2 NA Shares redeemed (4) NA --------- --------- Total Advisor Shares 63 NA --------- --------- Change from capital transactions $ (983) $ (2,817) ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 1,213 824 Dividends reinvested 176 108 Shares redeemed (963) (1,080) --------- --------- Total Institutional Shares 426 (148) --------- --------- Class A Shares Shares issued 723 782 Dividends reinvested 165 100 Shares redeemed (1,164) (1,038) --------- --------- Total Class A Shares (276) (156) --------- --------- Class B Shares Shares issued 148 417 Dividends reinvested 77 41 Shares redeemed (385) (424) --------- --------- Total Class B Shares (160) 34 --------- --------- Class C Shares Shares issued 43 144 Dividends reinvested 11 6 Shares redeemed (133) (129) --------- --------- Total Class C Shares (79) 21 --------- --------- Advisor Shares Shares issued 5 NA Dividends reinvested -- ^ NA Shares redeemed -- ^ NA --------- --------- Total Advisor Shares 5 NA --------- --------- Change from share transactions (84) (249) ========= =========
_____________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars/shares. SEE NOTES TO FINANCIAL STATEMENTS 148-149 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
LIFEMODEL CONSERVATIVE FUND SM STRATEGIC INCOME FUND DIVIDEND GROWTH FUND ---------------------- ---------------------- ----------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 2005 2006 (a) (b) 2005 --------- --------- --------- --------- ----------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 8,371 $ 12,957 $ 30,183 $ 24,974 $ 13,614 $ 503 Dividends reinvested 1,072 610 930 649 103 -- Shares redeemed (6,849) (5,952) (19,695) (21,877) (4,705) (2,518) --------- --------- --------- --------- ----------- --------- Total Institutional Shares 2,594 7,615 11,418 3,746 9,012 (2,015) --------- --------- --------- --------- ----------- --------- Class A Shares Shares issued 2,292 9,897 2,449 3,984 301 865 Dividends reinvested 759 764 180 76 51 -- Shares redeemed (6,582) (11,653) (2,492) (652) (2,954) (4,122) --------- --------- --------- --------- ----------- --------- Total Class A Shares (3,531) (992) 137 3,408 (2,602) (3,257) --------- --------- --------- --------- ----------- --------- Class B Shares Shares issued 1,035 2,138 600 1,573 114 25 Dividends reinvested 378 351 43 18 2 -- Shares redeemed (3,682) (3,641) (919) (96) (67) (200) --------- --------- --------- --------- ----------- --------- Total Class B Shares (2,269) (1,152) (276) 1,495 49 (175) --------- --------- --------- --------- ----------- --------- Class C Shares Shares issued 681 1,893 1,493 2,493 50 15 Dividends reinvested 121 152 792 957 3 -- Shares redeemed (2,211) (3,451) (10,775) (14,830) (196) (138) --------- --------- --------- --------- ----------- --------- Total Class C Shares (1,409) (1,406) (8,490) (11,380) (143) (123) --------- --------- --------- --------- ----------- --------- Advisor Shares Shares issued 48 NA 1,974 4,501 13 NA Dividends reinvested 1 NA 1,076 1,335 -- ^ NA Shares redeemed (4) NA (13,943) (14,572) -- NA --------- --------- --------- --------- ----------- --------- Total Advisor Shares 45 NA (10,893) (8,736) 13 NA --------- --------- --------- --------- ----------- --------- Change from capital transactions $ (4,570) $ 4,065 $ (8,104) $ (11,467) $ 6,329 $ (5,570) ========= ========= ========= ========= =========== ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 773 1,199 2,675 2,176 630 25 Dividends reinvested 100 56 82 57 5 -- Shares redeemed (633) (551) (1,745) (1,908) (212) (125) --------- --------- --------- --------- ----------- --------- Total Institutional Shares 240 704 1,012 325 423 (100) --------- --------- --------- --------- ----------- --------- Class A Shares Shares issued 212 925 216 348 15 47 Dividends reinvested 71 71 16 7 2 -- Shares redeemed (610) (1,083) (222) (57) (138) (214) --------- --------- --------- --------- ----------- --------- Total Class A Shares (327) (87) 10 298 (121) (167) --------- --------- --------- --------- ----------- --------- Class B Shares Shares issued 97 199 52 137 5 1 Dividends reinvested 35 33 4 2 -- ^ -- Shares redeemed (342) (339) (81) (8) (3) (10) --------- --------- --------- --------- ----------- --------- Total Class B Shares (210) (107) (25) 131 2 (9) --------- --------- --------- --------- ----------- --------- Class C Shares Shares issued 64 177 133 220 4 1 Dividends reinvested 11 14 71 84 -- ^ -- Shares redeemed (205) (322) (963) (1,308) (10) (8) --------- --------- --------- --------- ----------- --------- Total Class C Shares (130) (131) (759) (1,004) (6) (7) --------- --------- --------- --------- ----------- --------- Advisor Shares Shares issued 4 NA 174 394 1 NA Dividends reinvested -- ^ NA 95 117 -- ^ NA Shares redeemed -- ^ NA (1,240) (1,279) -- NA --------- --------- --------- --------- ----------- --------- Total Advisor Shares 4 NA (971) (768) 1 NA --------- --------- --------- --------- ----------- --------- Change from share transactions (423) 379 (733) (1,018) 299 (283) ========= ========= ========= ========= =========== ========= INTERNATIONAL HIGH YIELD TECHNOLOGY FUND EQUITY FUND BOND FUND BOND FUND ---------------------- ---------------------- ---------- ---------------------- YEAR YEAR YEAR YEAR PERIOD YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 2005 2006 (c) 2006 2005 --------- --------- --------- --------- ---------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 22,631 $ 9,259 $ 163,862 $ 82,064 $ 71,545 $ 44,572 $ 93,508 Dividends reinvested -- -- 11,562 2,185 70 4,406 3,033 Shares redeemed (12,574) (14,038) (88,658) (177,553) (3,810) (78,354) (83,909) --------- --------- --------- --------- ---------- --------- --------- Total Institutional Shares 10,057 (4,779) 86,766 (93,304) 67,805 (29,376) 12,632 --------- --------- --------- --------- ---------- --------- --------- Class A Shares Shares issued 651 1,208 10,028 4,426 272 1,047 2,296 Dividends reinvested -- -- 805 384 5 613 617 Shares redeemed (2,441) (3,614) (7,793) (10,704) (43) (5,324) (9,750) --------- --------- --------- --------- ---------- --------- --------- Total Class A Shares (1,790) (2,406) 3,040 (5,894) 234 (3,664) (6,837) --------- --------- --------- --------- ---------- --------- --------- Class B Shares Shares issued 83 121 682 503 103 192 253 Dividends reinvested -- -- 38 10 -- ^ 111 103 Shares redeemed (314) (573) (192) (154) (5) (1,432) (988) --------- --------- --------- --------- ---------- --------- --------- Total Class B Shares (231) (452) 528 359 98 (1,129) (632) --------- --------- --------- --------- ---------- --------- --------- Class C Shares Shares issued 611 81 441 519 56 9 79 Dividends reinvested -- -- 33 6 1 18 19 Shares redeemed (316) (1,409) (461) (214) -- (341) (223) --------- --------- --------- --------- ---------- --------- --------- Total Class C Shares 295 (1,328) 13 311 57 (314) (125) --------- --------- --------- --------- ---------- --------- --------- Advisor Shares Shares issued 2,678 152 1,477 605 10 48 81 Dividends reinvested -- -- 315 175 -- 14 18 Shares redeemed (694) (197) (6,352) (2,691) -- (406) (136) --------- --------- --------- --------- ---------- --------- --------- Total Advisor Shares 1,984 (45) (4,560) (1,911) 10 (344) (37) --------- --------- --------- --------- ---------- --------- --------- Change from capital transactions $ 10,315 $ (9,010) $ 85,787 $(100,439) $ 68,204 $ (34,827) $ 5,001 ========= ========= ========= ========= ========== ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 1,993 1,021 14,066 8,108 7,153 4,530 9,257 Dividends reinvested -- -- 994 211 7 448 299 Shares redeemed (1,182) (1,549) (7,353) (17,002) (381) (7,939) (8,263) --------- --------- --------- --------- ---------- --------- --------- Total Institutional Shares 811 (528) 7,707 (8,683) 6,779 (2,961) 1,293 --------- --------- --------- --------- ---------- --------- --------- Class A Shares Shares issued 60 135 823 432 27 107 226 Dividends reinvested -- -- 69 37 -- ^ 62 61 Shares redeemed (232) (403) (631) (1,036) (4) (542) (962) --------- --------- --------- --------- ---------- --------- --------- Total Class A Shares (172) (268) 261 (567) 23 (373) (675) --------- --------- --------- --------- ---------- --------- --------- Class B Shares Shares issued 9 14 56 48 10 19 25 Dividends reinvested -- -- 3 1 -- ^ 11 10 Shares redeemed (32) (68) (16) (15) -- ^ (144) (97) --------- --------- --------- --------- ---------- --------- --------- Total Class B Shares (23) (54) 43 34 10 (114) (62) --------- --------- --------- --------- ---------- --------- --------- Class C Shares Shares issued 53 9 37 51 6 2 8 Dividends reinvested -- -- 3 1 -- ^ 2 2 Shares redeemed (32) (164) (40) (21) -- (35) (23) --------- --------- --------- --------- ---------- --------- --------- Total Class C Shares 21 (155) -- ^ 31 6 (31) (13) --------- --------- --------- --------- ---------- --------- --------- Advisor Shares Shares issued 240 17 121 58 1 5 8 Dividends reinvested -- -- 27 17 -- 1 2 Shares redeemed (69) (22) (541) (260) -- (41) (13) --------- --------- --------- --------- ---------- --------- --------- Total Advisor Shares 171 (5) (393) (185) 1 (35) (3) --------- --------- --------- --------- ---------- --------- --------- Change from share transactions 808 (1,010) 7,618 (9,370) 6,819 (3,514) 540 ========= ========= ========= ========= ========== ========= =========
_____________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. (b) Formerly the Select Stock Fund. (c) Reflects operations for the period from November 29, 2005 (date of commencement of operations) to July 31, 2006. ^ Represents fewer than five hundred dollars/shares. SEE NOTES TO FINANCIAL STATEMENTS 150-151 Spread FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED -- FUND SHARE TRANSACTIONS (AMOUNTS IN THOUSANDS) --------------------------------------------------------------------------------
U.S. GOVERNMENT INTERMEDIATE BOND FUND SHORT TERM BOND FUND BOND FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 (a) 2005 2006 (a) 2005 2006 (a) 2005 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 56,824 $ 78,453 $ 33,522 $ 113,038 $ 4,977 $ 7,325 Dividends reinvested 3,132 4,315 1,840 3,007 552 499 Shares redeemed (148,472) (208,267) (107,348) (268,049) (9,175) (18,374) --------- --------- --------- --------- --------- --------- Total Institutional Shares (88,516) (125,499) (71,986) (152,004) (3,646) (10,550) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 1,573 2,719 1,127 3,235 755 1,411 Dividends reinvested 915 1,060 469 620 893 709 Shares redeemed (8,407) (11,082) (6,169) (14,513) (4,651) (5,978) --------- --------- --------- --------- --------- --------- Total Class A Shares (5,919) (7,303) (4,573) (10,658) (3,003) (3,858) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 4 -- NA NA NA NA Dividends reinvested 105 128 NA NA NA NA Shares redeemed (1,112) (749) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Class B Shares (1,003) (621) NA NA NA NA --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 151 193 27 206 123 205 Dividends reinvested 31 36 6 9 48 51 Shares redeemed (509) (738) (187) (368) (1,202) (1,665) --------- --------- --------- --------- --------- --------- Total Class C Shares (327) (509) (154) (153) (1,031) (1,409) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 13 NA 3 NA 3 NA Dividends reinvested -- ^ NA -- ^ NA -- ^ NA Shares redeemed -- NA -- NA -- NA --------- --------- --------- --------- --------- --------- Total Advisor Shares 13 NA 3 NA 3 NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (95,752) $(133,932) $ (76,710) $(162,815) $ (7,677) $ (15,817) ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 5,899 7,923 3,610 11,863 500 721 Dividends reinvested 326 434 198 317 55 49 Shares redeemed (15,417) (20,921) (11,533) (28,302) (921) (1,804) --------- --------- --------- --------- --------- --------- Total Institutional Shares (9,192) (12,564) (7,725) (16,122) (366) (1,034) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 163 271 121 341 76 139 Dividends reinvested 95 107 51 65 90 70 Shares redeemed (873) (1,112) (663) (1,534) (469) (588) --------- --------- --------- --------- --------- --------- Total Class A Shares (615) (734) (491) (1,128) (303) (379) --------- --------- --------- --------- --------- --------- Class B Shares Shares issued -- ^ -- NA NA NA NA Dividends reinvested 11 13 NA NA NA NA Shares redeemed (116) (75) NA NA NA NA --------- --------- --------- --------- --------- --------- Total Class B Shares (105) (62) NA NA NA NA --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 16 19 2 22 13 20 Dividends reinvested 3 4 1 1 5 5 Shares redeemed (53) (74) (20) (39) (122) (164) --------- --------- --------- --------- --------- --------- Total Class C Shares (34) (51) (17) (16) (104) (139) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued 1 NA -- ^ NA -- ^ NA Dividends reinvested -- ^ NA -- ^ NA -- ^ NA Shares redeemed -- NA -- NA -- NA --------- --------- --------- --------- --------- --------- Total Advisor Shares 1 NA -- ^ NA -- ^ NA --------- --------- --------- --------- --------- --------- Change from share transactions (9,945) (13,411) (8,233) (17,266) (773) (1,552) ========= ========= ========= ========= ========= ========= INTERMEDIATE MUNICIPAL OHIO MUNICIPAL MUNICIPAL BOND FUND BOND FUND BOND FUND ---------------------- ---------------------- ---------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, 2006 2005 2006 (a) 2005 2006 (a) 2005 --------- --------- --------- --------- --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 5,557 $ 8,466 $ 6,499 $ 6,896 $ 4,240 $ 2,429 Dividends reinvested 2,074 2,120 2,456 1,920 303 910 Shares redeemed (14,847) (16,807) (43,318) (54,557) (21,060) (23,611) --------- --------- --------- --------- --------- --------- Total Institutional Shares (7,216) (6,221) (34,363) (45,741) (16,517) (20,272) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 89 55 22 99 360 4,818 Dividends reinvested 82 96 101 119 248 408 Shares redeemed (323) (907) (533) (1,571) (4,859) (3,892) --------- --------- --------- --------- --------- --------- Total Class A Shares (152) (756) (410) (1,353) (4,251) 1,334 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 47 175 -- -- 24 109 Dividends reinvested 80 83 29 40 89 117 Shares redeemed (496) (258) (545) (302) (872) (597) --------- --------- --------- --------- --------- --------- Total Class B Shares (369) -- ^ (516) (262) (759) (371) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 25 51 1 10 -- ^ 249 Dividends reinvested 6 15 5 9 39 108 Shares redeemed (111) (238) (70) (225) (2,586) (812) --------- --------- --------- --------- --------- --------- Total Class C Shares (80) (172) (64) (206) (2,547) (455) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued -- 10 3 NA 3 NA Dividends reinvested 8 19 -- ^ NA -- ^ NA Shares redeemed (189) (70) -- NA -- NA --------- --------- --------- --------- --------- --------- Total Advisor Shares (181) (41) 3 NA 3 NA --------- --------- --------- --------- --------- --------- Change from capital transactions $ (7,998) $ (7,190) $ (35,350) $ (47,562) $ (24,071) $ (19,764) ========= ========= ========= ========= ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 578 834 644 660 421 234 Dividends reinvested 218 209 243 182 30 88 Shares redeemed (1,541) (1,642) (4,282) (5,195) (2,089) (2,278) --------- --------- --------- --------- --------- --------- Total Institutional Shares (745) (599) (3,395) (4,353) (1,638) (1,956) --------- --------- --------- --------- --------- --------- Class A Shares Shares issued 9 5 2 10 35 462 Dividends reinvested 9 9 10 11 25 39 Shares redeemed (34) (88) (53) (149) (478) (377) --------- --------- --------- --------- --------- --------- Total Class A Shares (16) (74) (41) (128) (418) 124 --------- --------- --------- --------- --------- --------- Class B Shares Shares issued 5 17 -- -- 2 11 Dividends reinvested 8 8 3 4 9 12 Shares redeemed (52) (25) (54) (29) (88) (59) --------- --------- --------- --------- --------- --------- Total Class B Shares (39) -- ^ (51) (25) (77) (36) --------- --------- --------- --------- --------- --------- Class C Shares Shares issued 2 5 -- ^ 1 -- ^ 24 Dividends reinvested 1 1 -- ^ 1 3 10 Shares redeemed (12) (23) (6) (22) (256) (77) --------- --------- --------- --------- --------- --------- Total Class C Shares (9) (17) (6) (20) (253) (43) --------- --------- --------- --------- --------- --------- Advisor Shares Shares issued -- 1 -- ^ NA -- ^ NA Dividends reinvested -- ^ 2 -- ^ NA -- ^ NA Shares redeemed (20) (7) -- NA -- NA --------- --------- --------- --------- --------- --------- Total Advisor Shares (20) (4) -- ^ NA -- ^ NA --------- --------- --------- --------- --------- --------- Change from share transactions (829) (694) (3,493) (4,526) (2,386) (1,911) ========= ========= ========= ========= ========= ========= MICHIGAN MUNICIPAL BOND FUND ---------------------- YEAR YEAR ENDED ENDED JULY 31, JULY 31, 2006 (a) 2005 --------- --------- CAPITAL TRANSACTIONS: Institutional Shares Shares issued $ 3,535 $ 5,241 Dividends reinvested 77 259 Shares redeemed (26,140) (35,599) --------- --------- Total Institutional Shares (22,528) (30,099) --------- --------- Class A Shares Shares issued 777 19 Dividends reinvested 98 114 Shares redeemed (782) (2,641) --------- --------- Total Class A Shares 93 (2,508) --------- --------- Class B Shares Shares issued -- 34 Dividends reinvested 8 14 Shares redeemed (564) (430) --------- --------- Total Class B Shares (556) (382) --------- --------- Class C Shares Shares issued 5 37 Dividends reinvested 5 14 Shares redeemed (257) (1,391) --------- --------- Total Class C Shares (247) (1,340) --------- --------- Advisor Shares Shares issued 3 NA Dividends reinvested -- ^ NA Shares redeemed -- NA --------- --------- Total Advisor Shares 3 NA --------- --------- Change from capital transactions $ (23,235) $ (34,329) ========= ========= SHARE TRANSACTIONS: Institutional Shares Shares issued 355 516 Dividends reinvested 8 26 Shares redeemed (2,626) (3,508) --------- --------- Total Institutional Shares (2,263) (2,966) --------- --------- Class A Shares Shares issued 78 2 Dividends reinvested 10 11 Shares redeemed (79) (261) --------- --------- Total Class A Shares 9 (248) --------- --------- Class B Shares Shares issued -- 3 Dividends reinvested 1 1 Shares redeemed (57) (42) --------- --------- Total Class B Shares (56) (38) --------- --------- Class C Shares Shares issued -- ^ 4 Dividends reinvested -- ^ 1 Shares redeemed (25) (137) --------- --------- Total Class C Shares (25) (132) --------- --------- Advisor Shares Shares issued -- ^ NA Dividends reinvested -- ^ NA Shares redeemed -- NA --------- --------- Total Advisor Shares -- ^ NA --------- --------- Change from share transactions (2,335) (3,384) ========= =========
________________ (a) Reflects operations for the period from August 1, 2005 (date of commencement of operations) to July 31, 2006 for Advisor Shares. ^ Represents fewer than five hundred dollars/shares. SEE NOTES TO FINANCIAL STATEMENTS 152-153 Spread FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 2006 -------------------------------------------------------------------------------- (1) ORGANIZATION The 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. At July 31, 2006, the Trust consisted of thirty-six separate investment portfolios, one of which is not currently offered and not included in these financial statements. The accompanying financial statements and notes relate only to the following Funds (individually a "Fund" and collectively the "Funds"): PORTFOLIO NAME Fifth Third Small Cap Growth Fund ("Small Cap Growth Fund") Fifth Third Mid Cap Growth Fund ("Mid Cap Growth Fund") Fifth Third Quality Growth Fund ("Quality Growth Fund") Fifth Third Large Cap Core Fund ("Large Cap Core Fund") Fifth Third Equity Index Fund ("Equity Index Fund") Fifth Third Balanced Fund ("Balanced Fund") Fifth Third Micro Cap Value Fund ("Micro Cap Value Fund") Fifth Third Small Cap Value Fund ("Small Cap Value Fund") Fifth Third Multi Cap Value Fund ("Multi Cap Value Fund") Fifth Third Disciplined Large Cap Value Fund ("Disciplined Large Cap Value Fund") Fifth Third LifeModel Aggressive Fund SM ("LifeModel Aggressive Fund SM") Fifth Third LifeModel Moderately Aggressive Fund SM ("LifeModel Moderately Aggressive Fund SM") Fifth Third LifeModel Moderate Fund SM ("LifeModel Moderate Fund SM") Fifth Third LifeModel Moderately Conservative Fund SM ("LifeModel Moderately Conservative Fund SM") Fifth Third LifeModel Conservative Fund SM ("LifeModel Conservative Fund SM") Fifth Third Strategic Income Fund ("Strategic Income Fund") Fifth Third Dividend Growth Fund ("Dividend Growth Fund") (Formerly the "Select Stock Fund") Fifth Third Technology Fund ("Technology Fund") Fifth Third International Equity Fund ("International Equity Fund") Fifth Third High Yield Bond Fund ("High Yield Bond Fund") Fifth Third Bond Fund ("Bond Fund") Fifth Third Intermediate Bond Fund ("Intermediate Bond Fund") Fifth Third Short Term Bond Fund ("Short Term Bond Fund") Fifth Third U.S. Government Bond Fund ("U.S. Government Bond Fund") Fifth Third Municipal Bond Fund ("Municipal Bond Fund") Fifth Third Intermediate Municipal Bond Fund ("Intermediate Municipal Bond Fund") Fifth Third Ohio Municipal Bond Fund ("Ohio Municipal Bond Fund") Fifth Third Michigan Municipal Bond Fund ("Michigan Municipal Bond Fund") The Short Term Bond Fund and U.S. Government Bond Fund each offer four classes of shares: Institutional Shares, Class A Shares, Class C Shares and Advisor Shares. The Equity Index Fund offers eight classes of shares: Institutional Shares, Class A Shares, Class B Shares, Class C Shares, Advisor Shares, Select Shares, Preferred Shares and Trust Shares. The remainder of the Funds each offer five classes of shares: Institutional Shares, Class A Shares, Class B Shares, Class C Shares and Advisor Shares. Class A Shares and Advisor Shares are subject to initial sales charges imposed at the time of purchase, in accordance with the Funds' prospectus. Certain redemptions of Class B Shares made within six years of purchase and certain redemptions of Class C Shares made within one year of purchase are subject to contingent deferred sales charges in accordance with the Funds' prospectus. Each class of shares for each Fund has identical rights and privileges 154 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- except with respect to administrative services fees paid by Class C Shares, Select Shares, Preferred Shares and Trust Shares, distribution services fees paid by Class A Shares, Class B Shares, Class C Shares and Advisor Shares, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares. Class B Shares of the Intermediate Bond Fund and Intermediate Municipal Bond Fund are closed for purchases to all investors. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnification. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as, the reported amounts of increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. SECURITIES VALUATIONS--Portfolio securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including American Depositary Receipts ("ADR"), are valued at the closing price on the exchange or system where the security is principally traded. If there have been no sales for that day on any exchange or system, a security is valued at the mean between the closing bid and asked quotes on the exchange or system where the security is principally traded, or at the Nasdaq Official Closing Price ("NOCP"), if applicable. Securities invested in the International Equity Fund are valued at the closing price on that exchange. Corporate debt securities and debt securities of U.S. issuers (other than short-term investments maturing in 60 days or less), including municipal securities, are valued at fair value on the basis of the closing bid as supplied by an independent pricing service approved by the Board of Trustees ("Trustees") or valuations provided by dealers. Short-term investments maturing in 60 days or less are valued at either amortized cost, which approximates market value or at original cost, which combined with accrued interest approximates market value. Investments in other open-end investment companies are valued at net asset value as reported by the underlying investment company. Investments for which there are no such quotations, or quotations which appear suspect, are valued at fair value as determined in good faith by the Pricing Committee under the direction of the Trustees. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Funds' net assets 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, the International Equity Fund may use a systematic valuation model provided by an independent third party to value its foreign securities. When the International Equity Fund uses fair value pricing, the value assigned to the International Equity Fund's foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges. REPURCHASE AGREEMENTS--The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by Fifth Third Asset Management, Inc. (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, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement transaction. Risks may arise from the potential inability of 155 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. SECURITIES TRANSACTIONS AND RELATED INCOME--For financial reporting purposes, securities transactions are accounted for on the trade date. At all other times, the Funds' securities transactions are recorded on a trade date plus one business day basis. Interest income is recognized on the accrual basis and includes, where applicable, amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Paydown gains and losses on mortgage-and asset-backed securities are recorded as adjustments to interest income. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country's tax rules and rates. FOREIGN CURRENCY TRANSLATION--The International Equity Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Realized foreign exchange gains or losses arise from sales and maturities of securities, sales of foreign currencies, currency exchange fluctuations between the trade and settlement dates of securities transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities, including investments in securities, resulting from changes in the currency exchange rates. FORWARD CURRENCY CONTRACTS--The International Equity Fund may enter into forward currency contracts ("forward"), which is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward fluctuates with changes in currency exchange rates. The forward is marked-to-market daily and the change in market value is recorded by a Fund as unrealized appreciation or depreciation. When the forward is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. FOREIGN CURRENCY COMMITMENTS--The International Equity Fund may enter into foreign currency commitments for the settlement of security transactions in foreign currencies. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. FUTURES CONTRACTS--The Funds, with the exception of the Dividend Growth Fund, the Intermediate Municipal Bond Fund and the Ohio Municipal Bond Fund, may enter into futures contracts for the delayed delivery of securities at a fixed price at some future date or for the change in the value of a specified financial index over a predetermined time period. Cash or securities are designated in order to maintain a position. Subsequent payments made or received by the Fund based on the daily change in the market value of the position are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The International Equity Fund held $1,750,788 in cash as collateral for its futures contracts which is restricted as to its use by the Fund. The use of futures contracts involves, to varying degrees, elements of market risk. Risks arise from the possible imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts. However, the Fund's activities in futures contracts are conducted through regulated exchanges which minimize counterparty credit risks. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS (TBA)--The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are valued daily and begin earning interest on the settlement date. 156 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- LENDING PORTFOLIO SECURITIES--To generate additional income, the Funds may lend up to one-third of their total assets pursuant to agreements requiring that the loan be continuously collateralized by cash, U.S. Government or U.S. Government Agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities as collateral equal at all times to at least 100% of the prior day's market value plus accrued interest on the securities loaned. The Funds continue to earn interest and dividends on securities loaned while simultaneously seeking to earn interest on the investment of collateral. Pursuant to an exemptive order from the Securities and Exchange Commission, the cash collateral received by the Funds was pooled, which in turn the cash may then be invested in a pool of short-term U.S. Government securities, repurchase agreements, or other short-term corporate securities. The cash or subsequent short-term investments are recorded as assets of the Funds, offset by a corresponding liability to repay the cash at the termination of the loan. Fixed income securities received as collateral are not recorded as an asset or liability of the Fund because the Fund does not have effective control of such securities. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers deemed by the Advisor to be of good standing and creditworthy under guidelines established by the Trustees and when, in the judgment of the Advisor, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and are, therefore, not considered to be illiquid investments. OTHER--Expenses directly attributable to a Fund are charged to the Fund, while expenses which are attributable to more than one Fund of the Trust are allocated among the respective Funds based on their relative net assets or another appropriate basis. Income, expenses, and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets, except that each class separately bears expenses related specifically to that class, such as administrative and distribution fees. DISTRIBUTIONS TO SHAREHOLDERS--Dividends, if any, from net investment income are declared daily and paid monthly for the Strategic Income Fund. Dividends, if any, from net investment income are declared and paid monthly for the High Yield Bond Fund, Bond Fund, Intermediate Bond Fund, Short Term Bond Fund, U.S. Government Bond Fund, Municipal Bond Fund, Intermediate Municipal Bond Fund, Ohio Municipal Bond Fund and Michigan Municipal Bond Fund. Dividends, if any, from net investment income are declared and paid quarterly for the Mid Cap Growth Fund, Quality Growth Fund, Large Cap Core Fund, Equity Index Fund, Balanced Fund, Micro Cap Value Fund, Multi Cap Value Fund, Disciplined Large Cap Value Fund, LifeModel Aggressive Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel Moderately Conservative Fund SM, LifeModel Conservative Fund SM, Dividend Growth Fund and Technology Fund. Dividends, if any, from net investment income are declared and paid annually for the Small Cap Growth Fund, Small Cap Value Fund and International Equity Fund. Distributable net realized gains, if any, are declared and distributed at least annually. Dividends 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 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. 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. To the extent they exceed net investment income and net realized gains for tax purposes, they are reported as distribution of capital. FEDERAL TAXES--It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. 157 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax return to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has not completed their analysis on whether the adoption of FIN 48 will have an impact to the financial statements. (3) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISORY FEE--The Advisor receives for its services an annual investment advisory fee based on a percentage of each Fund's average daily net assets, as follows: 0.70% for the Small Cap Growth Fund, Large Cap Core Fund and High Yield Bond Fund, 0.80% for the Mid Cap Growth Fund, Quality Growth Fund, Balanced Fund, Disciplined Large Cap Value Fund and Dividend Growth Fund, 0.30% for the Equity Index Fund, 1.00% for the Micro Cap Value Fund, Multi Cap Value Fund, Strategic Income Fund, Technology Fund and International Equity Fund, 0.90% for the Small Cap Value Fund, 0.15% for the LifeModel Aggressive Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel Moderately Conservative Fund SM and LifeModel Conservative Fund SM, 0.60% for the Bond Fund, 0.55% for the Intermediate Bond Fund, U.S. Government Bond Fund, Municipal Bond Fund, Intermediate Municipal Bond Fund and Ohio Municipal Bond Fund, 0.50% for the Short Term Bond Fund and 0.45% for the Michigan Municipal Bond Fund. Morgan Stanley Investment Management Inc. is the International Equity Fund's Sub-Advisor. Fort Washington Investment Advisors, Inc. is the High Yield Bond Fund's Sub-Advisor.The Advisor compensates the Sub-Advisors at rates based on the respective Funds' average daily net assets. ADMINISTRATIVE FEE--Fifth Third Bank ("Fifth Third"), an affiliate of the Advisor, serves as the Trust's administrator. The administrator 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. Under the terms of the administration agreement, Fifth Third's fees are computed as a percentage of the average daily net assets of the Trust for the period. Administration fees are computed at 0.20% of the first $1 billion of the average daily net assets of the Trust, 0.18% of the average daily net assets of the Trust between $1 billion and $2 billion, 0.17% of the average daily net assets of the Trust between $2 billion and $15 billion, and 0.15% of more than $15 billion of the average daily net assets of the Trust. In addition, there shall be an annual flat fee for each class in excess of four classes per Fund, and each Fund is subject to an annual minimum fee. Pursuant to a separate agreement with Fifth Third, BISYS Fund Services Limited Partnership ("BISYS"), a wholly owned subsidiary of The BISYS Group, Inc., performs sub-administrative services on behalf of the Trust including providing certain administrative personnel and services necessary to operate the Trust, for which it received $1,624,847 in fees from Fifth Third during the year ended July 31, 2006, computed as a percentage (up to 0.0145%) of the average daily net assets of the Trust subject to certain minimums and reimbursement of certain expenses. Under a Compliance Services Agreement between the Funds', Fifth Third, and BISYS (the "CCO Agreement"), BISYS makes an employee available to serve as the Funds' Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS also provides infrastructure and support in implementing the written policies and procedures comprising the Funds' compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the Funds pay BISYS $200,000 per year subject to adjustment annually by the percentage increase in consumer prices for services as measured by the United States Consumer Price Index. BISYS pays the salary and other compensation earned by any such individuals as employees of BISYS. 158 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- The Advisor and Administrator have entered into expense limitation agreements with the Funds. Under the terms of the agreements, to the extent that ordinary operating expenses incurred by a Fund in any fiscal year exceed the expense limit for the Fund, such excess amount will be the liability of the Advisor and Administrator. If the operating expenses are less than the expense limit for the Fund, the Advisor and Administrator shall be entitled to reimbursement of the fees waived or reduced to the extent that the operating expenses and the amount reimbursed do not exceed such expense limit for the Fund. Such reimbursement shall be paid only while the expense limitation agreement is in effect and only if such amount paid, together with all other amounts reimbursed under this plan in the fiscal year, does not cause the Fund to exceed the expense limit. For the period from November 29, 2005 through July 31, 2006 the expense limits and the cumulative reimbursement that may potentially be made by the Funds is as follows (Amounts in thousands):
LIFEMODEL EQUITY LIFEMODEL MODERATELY LIFEMODEL LARGE CAP INDEX AGGRESSIVE AGGRESSIVE MODERATE CORE FUND FUND FUND SM FUND SM FUND SM --------- ------ ---------- ---------- --------- Institutional Shares 0.92% 0.19% 0.08% 0.08% 0.08% Class A Shares 1.17% 0.44% 0.33% 0.33% 0.33% Class B Shares 1.92% 1.19% 1.08% 1.08% 1.08% Class C Shares 1.92% 1.19% 1.08% 1.08% 1.08% Advisor Shares 1.42% 0.69% 0.58% 0.58% 0.58% Select Shares NA 0.27% NA NA NA Preferred Shares NA 0.34% NA NA NA Trust Shares NA 0.44% NA NA NA Amount subject to reimbursement expiring on November 28, 2006. $ 146 $1,149 $ 439 $ 829 $ 1,154
LIFEMODEL MODERATELY LIFEMODEL INTERNATIONAL HIGH YIELD MICHIGAN CONSERVATIVE CONSERVATIVE EQUITY BOND MUNICIPAL FUND SM FUND SM FUND FUND BOND FUND ------------ ------------ ------------- ---------- --------- Institutional Shares 0.08% 0.08% 1.35% 0.74% 0.68% Class A Shares 0.33% 0.33% 1.60% 0.99% 0.93% Class B Shares 1.08% 1.08% 2.35% 1.74% 1.68% Class C Shares 1.08% 1.08% 2.35% 1.74% 1.68% Advisor Shares 0.58% 0.58% 1.85% 1.24% 1.18% Amount subject to reimbursement expiring on November 28, 2006. $ 301 $ 195 $ 71 $ 152 $ 94
For the period from August 1, 2005 for the Dividend Growth Fund, through July 31, 2006, the expense limits currently in place and the cumulative reimbursement that may potentially be made by the Fund is as follows (Amounts in thousands): DIVIDEND GROWTH FUND --------------- Institutional Shares 0.73% Class A Shares 0.98% Class B Shares 1.73% Class C Shares 1.73% Advisor Shares 1.23% Amount subject to reimbursement expiring on November 28, 2008. $ 398 Fees may be voluntarily reduced or reimbursed to assist the Funds in maintaining competitive expense ratios. 159 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Fifth Third Funds Distributor, Inc., a wholly owned subsidiary of The BISYS Group, Inc., serves as the Trust's principal distributor. Under the terms of the Plan, the Funds will compensate the principal distributor from the net assets of the Funds' Class A Shares, Class B Shares, Class C Shares and Advisor Shares to finance activities intended to result in the sales of each Funds' shares. The Plan provides that the Funds may incur distribution expenses up to 0.25% of the average daily net assets for Class A Shares, up to 1.00% of the average daily net assets for Class B Shares, up to 0.75% of the average daily net assets for Class C Shares and up to 0.50% of the average daily net assets for Advisor Shares, annually, to compensate the distributor. For the year ended July 31, 2006, the Distributor received $2,708,507 from commissions earned on sales of Class A Shares and Advisor Shares and redemption of Class B Shares and Class C Shares, of which, the Distributor re-allowed $2,602,974 to affiliated broker-dealers of the Funds. ADMINISTRATIVE SERVICES FEE--The Trust has approved an Administrative Services Agreement with Fifth Third Funds Distributor, Inc. with respect to Class C Shares, Select Shares, Preferred Shares and Trust Shares. Under the Agreement, the Funds may make payments to the distributor and other financial institutions, which may include affiliates of the advisor, of up to 0.25% of the average daily net assets for Class C Shares, up to 0.08% of the average daily net assets for Select Shares, up to 0.15% of the average daily net assets for Preferred Shares and up to 0.25% of the average daily net assets for Trust Shares in exchange for certain administrative services fees for shareholders and for the maintenance of shareholder accounts. TRANSFER AND DIVIDEND DISBURSING AGENT--BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), a wholly owned subsidiary of The BISYS Group, Inc., serves as transfer and dividend disbursing agent. Pursuant to a separate agreement, BISYS Ohio retained the Advisor to perform certain services for the Trust and each investment portfolio of the Trust, for which the Advisor will receive a fee of 0.005% from BISYS Ohio computed as a percentage of the average daily net assets of each Fund. Fifth Third received $594,531 in fees for its services during the year ended July 31, 2006. Transfer agent fees are computed at 0.0195% of the average daily net assets of each Funds' shares up to $700 million, 0.017% of the average daily net assets of each Funds' shares between $700 million and $1 billion, 0.0155% of the average daily net assets of each Funds' shares between $1 billion and $2 billion and 0.013% of more than $2 billion of the average daily net assets of all Funds with the exception of the Equity Index Fund, LifeModel Aggressive Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel Moderately Conservative Fund SM and the LifeModel Conservative Fund SM. For the Equity Index Fund, LifeModel Aggressive Fund SM, LifeModel Moderately Aggressive Fund SM, LifeModel Moderate Fund SM, LifeModel Moderately Conservative Fund SM and the LifeModel Conservative Fund SM, transfer agent fees are computed at 0.0185% of the average daily net assets of each Funds' shares up to $700 million, 0.017% of the average daily net assets of each Funds' shares between $700 million and $1 billion, 0.0155% of the average daily net assets of each Funds' shares between $1 billion and $2 billion and 0.0125% of more than $2 billion of the average daily net assets of each Funds' shares. In addition, there is an annual flat fee for each additional class of shares per Fund. ACCOUNTING AND CUSTODY FEES--Fifth Third maintains the Funds' accounting records and is the Funds' custodian for which it receives a fee based on the level of each Fund's average net assets for the period, plus out-of-pocket expenses. Accounting fees are computed at 0.02% of the average daily net assets of each Funds' shares up to $500 million, 0.015% of the average daily net assets of each Funds' shares between $500 million and $1 billion, and 0.01% of more than $1 billion of the average daily net assets of each Funds' shares. In addition, there shall be an annual flat fee for each additional class of shares per Fund and each Fund is subject to an annual minimum fee. Pursuant to a separate agreement with Fifth Third, BISYS Ohio performs sub-accounting services on behalf of the Trust, for which it received $2,827,627 in fees from Fifth Third during the year ended July 31, 2006, computed as a percentage (up to 0.015%) of the average daily net assets of each Fund plus annual flat fees for each additional classes of shares per Fund and reimbursement of certain fees and other miscellaneous expenses. Custody fees are computed at 0.01% of the average daily net assets of each Funds' shares up to $25 million, 0.0075% of the average daily net assets of each Funds' shares between $25 million and $100 million, 0.005% of the average daily net assets of each Funds' shares between $100 million and $200 million, and 0.0025% of more than $200 million of the average daily net assets of each Funds' shares plus transaction charges. 160 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- Certain officers of the Trust are affiliated with the above companies, but are not paid any fees directly by the Trust for serving as officers of the Trust. (4) INVESTMENT TRANSACTIONS Purchases and sales of investments, excluding short-term securities for the year ended July 31, 2006, were as follows (Amounts in thousands): PURCHASES SALES ---------- ---------- Small Cap Growth Fund $ 119,234 $ 225,024 Mid Cap Growth Fund 266,642 370,349 Quality Growth Fund 891,333 1,017,583 Large Cap Core Fund 233,735 249,453 Equity Index Fund 24,060 54,966 Balanced Fund 190,070 239,856 Micro Cap Value Fund 58,134 127,611 Small Cap Value Fund 127,982 163,211 Multi Cap Value Fund 135,908 214,042 Disciplined Large Cap Value Fund 335,104 374,733 LifeModel Aggressive Fund SM 45,484 21,153 LifeModel Moderately Aggressive Fund SM 78,606 59,198 LifeModel Moderate Fund SM 148,309 144,150 LifeModel Moderately Conservative Fund SM 22,777 30,308 LifeModel Conservative Fund SM 8,636 15,036 Strategic Income Fund 11,133 25,799 Dividend Growth Fund 34,666 28,624 Technology Fund 281,694 273,300 International Equity Fund 149,211 94,332 High Yield Bond Fund 80,194 17,744 Bond Fund 782,168 849,986 Intermediate Bond Fund 606,468 823,559 Short Term Bond Fund 132,194 193,776 U.S. Government Bond Fund 53,625 73,357 Municipal Bond Fund 39,401 47,244 Intermediate Municipal Bond Fund 109,925 145,877 Ohio Municipal Bond Fund 31,382 56,054 Michigan Municipal Bond Fund 7,858 31,763 Purchase and sales of long-term U.S. Government Securities for the year ended July 31, 2006, were as follows (Amounts in thousands): PURCHASES SALES ---------- ---------- Balanced Fund $ 68,822 $ 81,149 Strategic Income Fund -- 122 Bond Fund 741,026 771,955 Intermediate Bond Fund 81,042 146,729 Short Term Bond Fund 41,340 52,739 U.S. Government Bond Fund 53,618 67,451 (5) LINE OF CREDIT The Trust participates in a credit agreement with Citibank N.A. Under the terms of the agreement, the Trust may borrow up to $75 million. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Citibank N.A. receives an annual facility fee of 0.09% on the aggregate principal amount committed under the agreement for providing the Line of Credit. Each Fund pays a pro-rata portion of this facility fee, plus any interest on amounts borrowed. There were no borrowings against the line of credit at the end of the year. 161 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- (6) FEDERAL TAX INFORMATION The Funds designate the following amounts as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals. The amounts designated may not agree with the long term capital gains in the tax character of distribution table due to utilization of earnings and profits distributed to shareholders on redemption of shares. (Amounts in thousands): AMOUNT --------- Small Cap Growth Fund $ 23,558 Mid Cap Growth Fund 4,993 Large Cap Core Fund 2,280 Micro Cap Value Fund 43,999 Small Cap Value Fund 6,294 Multi Cap Value Fund 28,876 Disciplined Large Cap Value Fund 49,300 LifeModel Aggressive Fund SM 3,132 LifeModel Moderately Aggressive Fund SM 5,004 LifeModel Moderate Fund SM 8,544 LifeModel Moderately Conservative Fund SM 2,257 LifeModel Conservative Fund SM 448 Strategic Income Fund 472 International Equity Fund 10,140 Bond Fund 697 U.S. Government Bond Fund 153 Municipal Bond Fund 2,043 Intermediate Municipal Bond Fund 1,654 Ohio Municipal Bond Fund 275 The tax character of distributions paid during the fiscal year ended July 31, 2006 was as follows (Amounts in thousands):
DISTRIBUTIONS PAID FROM ----------------------------- NET LONG TERM TAX TOTAL ORDINARY CAPITAL EXEMPT DISTRIBUTIONS INCOME GAINS INCOME PAID -------- --------- ------ ------------- Small Cap Growth Fund -- $ 22,453 -- $22,453 Mid Cap Growth Fund -- 4,993 -- 4,993 Large Cap Core Fund $ 1,931 2,280 -- 4,211 Equity Index Fund 7,005 -- -- 7,005 Balanced Fund 1,844 -- -- 1,844 Micro Cap Value Fund 91 42,152 -- 42,243 Small Cap Value Fund 8,884 5,923 -- 14,807 Multi Cap Value Fund 2,972 27,741 -- 30,713 Disciplined Large Cap Value Fund 17,021 48,765 -- 65,786 LifeModel Aggressive Fund SM 1,846 3,132 -- 4,978 LifeModel Moderately Aggressive Fund SM 6,436 5,004 -- 11,440 LifeModel Moderate Fund SM 12,720 8,544 -- 21,264 LifeModel Moderately Conservative Fund SM 2,949 2,257 -- 5,206 LifeModel Conservative Fund SM 2,027 448 -- 2,475 Strategic Income Fund 6,797 472 -- 7,269 Dividend Growth Fund 237 -- -- 237 International Equity Fund 7,124 10,140 -- 17,264 High Yield Bond Fund 2,432 -- -- 2,432 Bond Fund 13,862 697 -- 14,559 Intermediate Bond Fund 23,971 -- -- 23,971 Short Term Bond Fund 11,893 -- -- 11,893 U.S. Government Bond Fund 1,998 153 -- 2,151 Municipal Bond Fund 160 2,043 $1,786 3,989 Intermediate Municipal Bond Fund 748 1,654 6,615 9,017 Ohio Municipal Bond Fund 43 275 4,334 4,652 Michigan Municipal Bond Fund -- -- 1,881 1,881
162 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- The tax character of distributions paid during the fiscal year ended July 31, 2005 was as follows (Amounts in thousands):
DISTRIBUTIONS PAID FROM ----------------------------- NET LONG TERM TAX TOTAL ORDINARY CAPITAL EXEMPT DISTRIBUTIONS INCOME GAINS INCOME PAID -------- --------- ------ ------------- Small Cap Growth Fund -- $ 44,826 -- $44,826 Quality Growth Fund $ 2,218 -- -- 2,218 Large Cap Core Fund 1,286 2,775 -- 4,061 Equity Index Fund 8,380 -- -- 8,380 Balanced Fund 2,942 -- -- 2,942 Micro Cap Value Fund 3,376 13,113 -- 16,489 Small Cap Value Fund 7,395 3,613 -- 11,008 Multi Cap Value Fund 1,673 20,532 -- 22,205 Disciplined Large Cap Value Fund 10,747 15,133 -- 25,880 LifeModel Aggressive Fund SM 1,135 686 -- 1,821 LifeModel Moderately Aggressive Fund SM 3,543 1,350 -- 4,893 LifeModel Moderate Fund SM 9,769 1,019 -- 10,788 LifeModel Moderately Conservative Fund SM 2,405 623 -- 3,028 LifeModel Conservative Fund SM 1,772 222 -- 1,994 Strategic Income Fund 7,053 124 -- 7,177 International Equity Fund 7,282 -- -- 7,282 Bond Fund 10,836 350 -- 11,186 Intermediate Bond Fund 26,550 -- -- 26,550 Short Term Bond Fund 15,767 -- -- 15,767 U.S. Government Bond Fund 1,790 -- -- 1,790 Municipal Bond Fund -- 2,247 $2,202 4,449 Intermediate Municipal Bond Fund -- 1,820 9,253 11,073 Ohio Municipal Bond Fund -- 1,118 4,957 6,075 Michigan Municipal Bond Fund -- 131 2,605 2,736
As of July 31, 2006, the components of accumulated earnings/(deficit) on a tax basis was as follows (Amounts in thousands):
ACCUMULATED UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND TAX EXEMPT ORDINARY LONG-TERM DISTRIBUTIONS OTHER INCOME INCOME CAPITAL GAINS PAYABLE LOSSES ------------- ------------- ------------- ------------- ----------- Small Cap Growth Fund -- $2,993 $27,317 -- -- Mid Cap Growth Fund -- -- 63,168 -- -- Quality Growth Fund -- -- -- -- ($11,050) Large Cap Core Fund -- 81 758 -- (32,400) Equity Index Fund -- 432 -- -- (37,552) Balanced Fund -- 134 -- -- (44,117) Micro Cap Value Fund -- 2,220 22,170 -- -- Small Cap Value Fund -- 8,002 7,176 -- -- Multi Cap Value Fund -- 3,652 46,001 -- -- Disciplined Large Cap Value Fund -- 5,095 66,444 -- -- LifeModel Aggressive Fund SM -- 23 5,019 -- -- LifeModel Moderately Aggressive Fund SM -- 825 8,046 -- -- LifeModel Moderate Fund SM -- 2,550 10,618 -- -- LifeModel Moderately Conservative Fund SM -- 301 2,505 -- -- LifeModel Conservative Fund SM -- 283 971 -- -- Strategic Income Fund -- 897 1,526 ($609) -- Dividend Growth Fund -- -- -- -- (14,991) Technology Fund -- -- -- -- (45,744) International Equity Fund -- 1,895 6,046 -- (25,416) High Yield Bond Fund -- 236 -- -- -- Bond Fund -- 24 -- -- (3,789) Intermediate Bond Fund -- 63 -- -- (38,833) Short Term Bond Fund -- 17 -- -- (21,769) U.S. Government Bond Fund -- 154 -- -- (393) Municipal Bond Fund $12 -- 274 -- -- Intermediate Municipal Bond Fund 13 -- -- -- (52) Ohio Municipal Bond Fund 6 -- -- -- (123) Michigan Municipal Bond Fund 2 -- -- -- (301) TOTAL UNREALIZED ACCUMULATED APPRECIATION/ EARNINGS/ (DEPRECIATION)* (DEFICIT) --------------- ----------- Small Cap Growth Fund $ 27,699 $ 58,009 Mid Cap Growth Fund 61,480 124,648 Quality Growth Fund 50,321 39,271 Large Cap Core Fund 16,720 (14,841) Equity Index Fund 213,744 176,624 Balanced Fund 629 (43,354) Micro Cap Value Fund 14,788 39,178 Small Cap Value Fund 5,536 20,714 Multi Cap Value Fund 70,866 120,519 Disciplined Large Cap Value Fund 91,898 163,437 LifeModel Aggressive Fund SM 23,810 28,852 LifeModel Moderately Aggressive Fund SM 39,327 48,198 LifeModel Moderate Fund SM 28,894 42,062 LifeModel Moderately Conservative Fund SM 7,126 9,932 LifeModel Conservative Fund SM 320 1,574 Strategic Income Fund 2,717 4,531 Dividend Growth Fund 1,013 (13,978) Technology Fund (863) (46,607) International Equity Fund 65,556 48,081 High Yield Bond Fund (2,004) (1,768) Bond Fund (4,699) (8,464) Intermediate Bond Fund (7,010) (45,780) Short Term Bond Fund (5,822) (27,574) U.S. Government Bond Fund (987) (1,226) Municipal Bond Fund 1,064 1,350 Intermediate Municipal Bond Fund 2,554 2,515 Ohio Municipal Bond Fund 1,477 1,360 Michigan Municipal Bond Fund (488) (787)
_______________ * The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales and the difference between book and tax amortization methods for premium and market discount. 163 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- As of July 31, 2006, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset future capital gains, if any, to the extent provided by the treasury regulations (Amounts in thousands):
EXPIRATION YEAR --------------------------------------------------------------- 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL ---- ----- ---- ------- ------- ------ ----- ----- ------- Quality Growth Fund -- -- -- -- $11,050 -- -- -- $11,050 Large Cap Core Fund -- -- -- -- -- $ 793 -- -- 793 Equity Index Fund -- -- -- -- 36,946 606 -- -- 37,552 Balanced Fund -- -- -- -- 44,117 -- -- -- 44,117 Dividend Growth Fund -- -- -- $11,928 3,024 39 -- -- 14,991 Technology Fund -- -- -- 12,493 32,941 -- -- -- 45,434 Bond Fund -- -- -- -- -- -- -- 399 399 Intermediate Bond Fund -- 3,390 970 313 -- 2,968 3,492 6,550 17,683 Short Term Bond Fund 220 1,126 -- -- -- 733 6,363 9,779 18,221 U.S. Government Bond Fund -- -- -- -- -- -- -- 156 156 Intermediate Municipal Bond Fund -- -- -- -- -- -- -- 29 29 Ohio Municipal Bond Fund -- -- -- -- -- -- -- 123 123 Michigan Municipal Bond Fund -- -- -- -- -- -- -- 52 52
As of July 31, 2006, 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 (Amounts in thousands): EXPIRATION YEAR --------------------------------------- 2008 2009 2010 2011 TOTAL ------- ------- ------- ------ ------- Large Cap Core Fund $ 9,866 $21,741 -- -- $31,607 International Equity Fund 1,846 868 $17,397 $5,305 25,416 Intermediate Bond Fund 10,029 -- -- -- 10,029 Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. For the year ended July 31, 2006, the fund deferred to August 1, 2006 post October capital losses, post October currency losses and post October passive foreign investment company losses of (Amounts in thousands): CAPITAL LOSSES ------- Technology Fund $ 310 Bond Fund 3,390 Intermediate Bond Fund 11,121 Short Term Bond Fund 3,548 U.S. Government Bond Fund 237 Intermediate Municipal Bond Fund 23 Michigan Municipal Bond Fund 249 164 FIFTH THIRD FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED JULY 31, 2006 -------------------------------------------------------------------------------- (7) CONCENTRATION OF CREDIT RISK The International Equity Fund invests in equity and fixed income securities of non-U.S. issuers. Although the Fund maintains a diversified investment portfolio, the political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations. Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings. The Intermediate Municipal Bond Fund held a substantial amount of their assets in debt obligations issued by the State of Michigan and their political subdivisions, agencies and public authorities at July 31, 2006. The Fund is more susceptible to factors adversely affecting issuers of Michigan municipal securities than a Fund that is not concentrated in these issuers to the same extent. The Ohio Municipal Bond Fund and the Michigan Municipal Bond Fund invest a substantial portion of their assets in debt obligations issued by the State of Ohio and the State of Michigan, respectively, and their political subdivisions, agencies and public authorities. The Funds are more susceptible to factors adversely affecting issuers of Ohio and Michigan municipal securities than a Fund that is not concentrated in these issuers to the same extent. 165 FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS LESS DIVIDENDS AND RESULTING FROM OPERATIONS DISTRIBUTIONS FROM --------------------------- -------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET NET GAINS/(LOSSES) NET ASSETS TOTAL VALUE, INVESTMENT FROM RESULTING NET NET DIVIDENDS BEGINNING INCOME/ INVESTMENT FROM INVESTMENT REALIZED AND OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP GROWTH FUND INSTITUTIONAL SHARES Year ended 7/31/02 $17.86 (0.04) (3.56) (3.60) -- (0.56) (0.56) Year ended 7/31/03 $13.70 (0.03) 2.23 2.20 -- -- -- Year ended 7/31/04 $15.90 (0.12)@ 1.43 1.31 -- (1.73) (1.73) Year ended 7/31/05 $15.48 (0.10)@ 3.07 2.97 -- (2.87) (2.87) Year ended 7/31/06 $15.58 (0.11)@ 0.50 0.39 -- (1.87) (1.87) ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP GROWTH FUND CLASS A SHARES Year ended 7/31/02 $17.71 (0.07) (3.56) (3.63) -- (0.56) (0.56) Year ended 7/31/03 $13.52 (0.06) 2.19 2.13 -- -- -- Year ended 7/31/04 $15.65 (0.17)@ 1.43 1.26 -- (1.73) (1.73) Year ended 7/31/05 $15.18 (0.14)@ 3.00 2.86 -- (2.87) (2.87) Year ended 7/31/06 $15.17 (0.14)@ 0.49 0.35 -- (1.87) (1.87) ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP GROWTH FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $16.54 (0.05) (2.34) (2.39) -- (0.56) (0.56) Year ended 7/31/03 $13.59 (0.14) 2.16 2.02 -- -- -- Year ended 7/31/04 $15.61 (0.29)@ 1.43 1.14 -- (1.73) (1.73) Year ended 7/31/05 $15.02 (0.24)@ 2.94 2.70 -- (2.87) (2.87) Year ended 7/31/06 $14.85 (0.25)@ 0.48 0.23 -- (1.87) (1.87) ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP GROWTH FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $16.54 (0.11) (2.28) (2.39) -- (0.56) (0.56) Year ended 7/31/03 $13.59 (0.14) 2.17 2.03 -- -- -- Year ended 7/31/04 $15.62 (0.29)@ 1.43 1.14 -- (1.73) (1.73) Year ended 7/31/05 $15.03 (0.24)@ 2.94 2.70 -- (2.87) (2.87) Year ended 7/31/06 $14.86 (0.25)@ 0.49 0.24 -- (1.87) (1.87) ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP GROWTH FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $16.54 (0.03) (2.31) (2.34) -- (0.56) (0.56) Year ended 7/31/03 $13.64 (0.06) 2.17 2.11 -- -- -- Year ended 7/31/04 $15.75 (0.21)@ 1.44 1.23 -- (1.73) (1.73) Year ended 7/31/05 $15.25 (0.17)@ 3.00 2.83 -- (2.87) (2.87) Year ended 7/31/06 $15.21 (0.18)@ 0.49 0.31 -- (1.87) (1.87) ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS OF RATIOS OF NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES ASSET RETURN ASSETS, TO INVESTMENT TO VALUE, (EXCLUDES END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO END OF SALES PERIOD NET TO AVERAGE NET TURNOVER PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH FUND INSTITUTIONAL SHARES Year ended 7/31/02 $13.70 (20.80%) $485,623 0.93% (0.21%) 0.96% 25% Year ended 7/31/03 $15.90 16.06% $391,934 0.93% (0.16%) 0.98% 63% Year ended 7/31/04 $15.48 7.31% $223,439 1.00% (0.72%) 1.00% 95% Year ended 7/31/05 $15.58 20.81% $213,892 1.01% (0.68%) 1.01% 65% Year ended 7/31/06 $14.10 2.71% $126,809 1.02% (0.75%) 1.03% 67% ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH FUND CLASS A SHARES Year ended 7/31/02 $13.52 (21.15%) $ 16,468 1.18% (0.46%) 1.21% 25% Year ended 7/31/03 $15.65 15.75% $ 16,471 1.19% (0.42%) 1.23% 63% Year ended 7/31/04 $15.18 7.16% $ 25,921 1.25% (0.99%) 1.25% 95% Year ended 7/31/05 $15.17 20.45% $ 22,714 1.26% (0.93%) 1.26% 65% Year ended 7/31/06 $13.65 2.50% $ 17,783 1.27% (0.99%) 1.28% 67% ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $13.59 (13.01%)* $ 872 1.93%** (1.25%)** 1.98%** 25% Year ended 7/31/03 $15.61 14.86% $ 1,407 1.94% (1.17%) 1.98% 63% Year ended 7/31/04 $15.02 6.30% $ 1,784 2.00% (1.74%) 2.00% 95% Year ended 7/31/05 $14.85 19.51% $ 1,805 2.01% (1.68%) 2.01% 65% Year ended 7/31/06 $13.21 1.69% $ 1,414 2.02% (1.74%) 2.03% 67% ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $13.59 (13.01%)* $ 346 1.93%** (1.26%)** 1.97%** 25% Year ended 7/31/03 $15.62 14.94% $ 436 1.93% (1.16%) 1.98% 63% Year ended 7/31/04 $15.03 6.29% $ 810 2.00% (1.74%) 2.00% 95% Year ended 7/31/05 $14.86 19.57% $ 618 2.01% (1.68%) 2.01% 65% Year ended 7/31/06 $13.23 1.75% $ 384 2.02% (1.75%) 2.03% 67% ------------------------------------------------------------------------------------------------------------------------------- SMALL CAP GROWTH FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $13.64 (12.69%)* $ 220 1.43%** (0.74%)** 1.48%** 25% Year ended 7/31/03 $15.75 15.47% $ 469 1.44% (0.66%) 1.48% 63% Year ended 7/31/04 $15.25 6.84% $ 1,173 1.51% (1.26%) 1.51% 95% Year ended 7/31/05 $15.21 20.13% $ 1,195 1.51% (1.18%) 1.51% 65% Year ended 7/31/06 $13.65 2.20% $ 671 1.52% (1.25%) 1.53% 67% -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 166-167 Spread 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 NET GAINS/(LOSSES) NET ASSETS TOTAL VALUE, INVESTMENT FROM RESULTING NET NET DIVIDENDS BEGINNING INCOME/ INVESTMENT FROM INVESTMENT REALIZED AND OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS ------------------------------------------------------------------------------------------------------------------------------------ MID CAP GROWTH FUND INSTITUTIONAL SHARES Year ended 7/31/02 $15.10 (0.06) (4.33) (4.39) -- (0.47) (0.47) Year ended 7/31/03 $10.24 (0.07)@ 1.85 1.78 -- -- -- Year ended 7/31/04 $12.02 (0.09) 1.03 0.94 -- -- -- Year ended 7/31/05 $12.96 -- ^ 3.07 3.07 -- -- -- Year ended 7/31/06 $16.03 (0.04)@ 0.77 0.73 (0.02) (0.19) (0.21) ------------------------------------------------------------------------------------------------------------------------------------ MID CAP GROWTH FUND CLASS A SHARES Year ended 7/31/02 $14.94 (0.09) (4.27) (4.36) -- (0.47) (0.47) Year ended 7/31/03 $10.11 (0.09)@ 1.80 1.71 -- -- -- Year ended 7/31/04 $11.82 (0.12) 1.02 0.90 -- -- -- Year ended 7/31/05 $12.72 (0.05) 3.02 2.97 -- -- -- Year ended 7/31/06 $15.69 (0.08)@ 0.76 0.68 (0.01) (0.19) (0.20) ------------------------------------------------------------------------------------------------------------------------------------ MID CAP GROWTH FUND CLASS B SHARES Year ended 7/31/02 $14.86 (0.14) (4.27) (4.41) -- (0.47) (0.47) Year ended 7/31/03 $ 9.98 (0.17)@ 1.78 1.61 -- -- -- Year ended 7/31/04 $11.59 (0.21) 1.00 0.79 -- -- -- Year ended 7/31/05 $12.38 (0.15) 2.93 2.78 -- -- -- Year ended 7/31/06 $15.16 (0.20)@ 0.73 0.53 -- (0.19) (0.19) ------------------------------------------------------------------------------------------------------------------------------------ MID CAP GROWTH FUND CLASS C SHARES Year ended 7/31/02 $14.36 (0.18) (4.08) (4.26) -- (0.47) (0.47) Year ended 7/31/03 $ 9.63 (0.16)@ 1.70 1.54 -- -- -- Year ended 7/31/04 $11.17 (0.21) 0.98 0.77 -- -- -- Year ended 7/31/05 $11.94 (0.16) 2.83 2.67 -- -- -- Year ended 7/31/06 $14.61 (0.19)@ 0.71 0.52 -- (0.19) (0.19) ------------------------------------------------------------------------------------------------------------------------------------ MID CAP GROWTH FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $13.47 (0.04) (2.87) (2.91) -- (0.47) (0.47) Year ended 7/31/03 $10.09 (0.12)@ 1.81 1.69 -- -- -- Year ended 7/31/04 $11.78 (0.12) 0.99 0.87 -- -- -- Year ended 7/31/05 $12.65 (0.07) 2.98 2.91 -- -- -- Year ended 7/31/06 $15.56 (0.12)@ 0.75 0.63 -- (0.19) (0.19) ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS OF RATIOS OF NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES ASSET RETURN ASSETS, TO INVESTMENT TO VALUE, (EXCLUDES END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO END OF SALES PERIOD NET TO AVERAGE NET TURNOVER PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH FUND INSTITUTIONAL SHARES Year ended 7/31/02 $10.24 (30.02%) $207,807 1.12% (0.49%) 1.14% 27% Year ended 7/31/03 $12.02 17.38% $335,285 1.10% (0.65%) 1.10% 25% Year ended 7/31/04 $12.96 7.82% $335,815 1.09% (0.68%) 1.09% 83% Year ended 7/31/05 $16.03 23.69% $392,929 1.09% (0.03%) 1.09% 54% Year ended 7/31/06 $16.55 4.56% $318,133 1.08% (0.24%) 1.08% 69% ------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH FUND CLASS A SHARES Year ended 7/31/02 $10.11 (30.21%) $ 30,165 1.36% (0.74%) 1.39% 27% Year ended 7/31/03 $11.82 17.03% $ 35,504 1.35% (0.89%) 1.35% 25% Year ended 7/31/04 $12.72 7.61% $ 49,586 1.34% (0.93%) 1.34% 83% Year ended 7/31/05 $15.69 23.35% $ 41,921 1.34% (0.29%) 1.34% 54% Year ended 7/31/06 $16.17 4.34% $ 34,437 1.33% (0.49%) 1.33% 69% ------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH FUND CLASS B SHARES Year ended 7/31/02 $ 9.98 (30.65%) $ 5,008 2.12% (1.51%) 2.15% 27% Year ended 7/31/03 $11.59 16.13% $ 5,846 2.10% (1.64%) 2.10% 25% Year ended 7/31/04 $12.38 6.82% $ 6,730 2.09% (1.68%) 2.09% 83% Year ended 7/31/05 $15.16 22.46% $ 6,874 2.09% (1.03%) 2.09% 54% Year ended 7/31/06 $15.50 3.51% $ 6,507 2.08% (1.24%) 2.08% 69% ------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH FUND CLASS C SHARES Year ended 7/31/02 $ 9.63 (30.67%) $ 1,061 2.12% (1.49%) 2.14% 27% Year ended 7/31/03 $11.17 15.99% $ 1,525 2.10% (1.64%) 2.10% 25% Year ended 7/31/04 $11.94 6.89% $ 1,700 2.09% (1.68%) 2.09% 83% Year ended 7/31/05 $14.61 22.36% $ 1,600 2.09% (1.03%) 2.09% 54% Year ended 7/31/06 $14.94 3.57% $ 1,122 2.08% (1.22%) 2.08% 69% ------------------------------------------------------------------------------------------------------------------------------- MID CAP GROWTH FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $10.09 (19.75%)* $ 145 1.68%** (1.06%)** 1.71%** 27% Year ended 7/31/03 $11.78 16.75% $ 240 1.60% (1.14%) 1.60% 25% Year ended 7/31/04 $12.65 7.39% $ 962 1.59% (1.17%) 1.59% 83% Year ended 7/31/05 $15.56 23.00% $ 1,218 1.59% (0.52%) 1.59% 54% Year ended 7/31/06 $16.00 4.07% $ 813 1.58% (0.72%) 1.58% 69% -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 168-169 Spread 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 NET GAINS/(LOSSES) NET ASSETS TOTAL VALUE, INVESTMENT FROM RESULTING NET NET DIVIDENDS BEGINNING INCOME/ INVESTMENT FROM INVESTMENT REALIZED AND OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS ------------------------------------------------------------------------------------------------------------------------------------ QUALITY GROWTH FUND INSTITUTIONAL SHARES Year ended 7/31/02 $18.48 (0.04) (4.94) (4.98) -- (0.59) (0.59) Year ended 7/31/03 $12.91 0.01 1.31 1.32 --^ -- --^ Year ended 7/31/04 $14.23 (0.04) 0.42 0.38 -- -- -- Year ended 7/31/05 $14.61 0.03 1.74 1.77 (0.04) -- (0.04) Year ended 7/31/06 $16.34 (0.03)@ (0.64) (0.67) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ QUALITY GROWTH FUND CLASS A SHARES Year ended 7/31/02 $18.33 (0.08) (4.89) (4.97) -- (0.59) (0.59) Year ended 7/31/03 $12.77 (0.02) 1.29 1.27 -- -- -- Year ended 7/31/04 $14.04 (0.08) 0.42 0.34 -- -- -- Year ended 7/31/05 $14.38 (0.02) 1.72 1.70 (0.03) -- (0.03) Year ended 7/31/06 $16.05 (0.07)@ (0.62) (0.69) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ QUALITY GROWTH FUND CLASS B SHARES Year ended 7/31/02 $18.23 (0.16) (4.88) (5.04) -- (0.59) (0.59) Year ended 7/31/03 $12.60 (0.12) 1.27 1.15 -- -- -- Year ended 7/31/04 $13.75 (0.19) 0.43 0.24 -- -- -- Year ended 7/31/05 $13.99 (0.14) 1.67 1.53 --^ -- --^ Year ended 7/31/06 $15.52 (0.18)@ (0.60) (0.78) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ QUALITY GROWTH FUND CLASS C SHARES Year ended 7/31/02 $17.78 (0.20) (4.71) (4.91) -- (0.59) (0.59) Year ended 7/31/03 $12.28 (0.11) 1.23 1.12 -- -- -- Year ended 7/31/04 $13.40 (0.20) 0.43 0.23 -- -- -- Year ended 7/31/05 $13.63 (0.15) 1.64 1.49 --^ -- --^ Year ended 7/31/06 $15.12 (0.18)@ (0.58) (0.76) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ QUALITY GROWTH FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $16.79 (0.03) (3.42) (3.45) -- (0.59) (0.59) Year ended 7/31/03 $12.75 (0.03) 1.26 1.23 -- -- -- Year ended 7/31/04 $13.98 (0.09) 0.40 0.31 -- -- -- Year ended 7/31/05 $14.29 (0.06) 1.71 1.65 (0.02) -- (0.02) Year ended 7/31/06 $15.92 (0.11)@ (0.62) (0.73) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS OF RATIOS OF NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES ASSET RETURN ASSETS, TO INVESTMENT TO VALUE, (EXCLUDES END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO END OF SALES PERIOD NET TO AVERAGE NET TURNOVER PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH FUND INSTITUTIONAL SHARES Year ended 7/31/02 $12.91 (27.90%) $566,235 1.09% (0.24%) 1.09% 20% Year ended 7/31/03 $14.23 10.23% $795,988 1.08% 0.05% 1.08% 19% Year ended 7/31/04 $14.61 2.67% $882,256 1.07% (0.24%) 1.07% 35% Year ended 7/31/05 $16.34 12.13% $707,766 1.08% 0.16% 1.08% 71% Year ended 7/31/06 $15.67 (4.10%) $616,737 1.08% (0.18%) 1.08% 108% ------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH FUND CLASS A SHARES Year ended 7/31/02 $12.77 (28.08%) $221,972 1.34% (0.49%) 1.34% 20% Year ended 7/31/03 $14.04 9.95% $211,221 1.33% (0.19%) 1.33% 19% Year ended 7/31/04 $14.38 2.42% $220,904 1.32% (0.49%) 1.32% 35% Year ended 7/31/05 $16.05 11.83% $165,836 1.33% (0.08%) 1.33% 71% Year ended 7/31/06 $15.36 (4.30%) $114,828 1.33% (0.42%) 1.33% 108% ------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH FUND CLASS B SHARES Year ended 7/31/02 $12.60 (28.63%) $ 19,678 2.10% (1.25%) 2.10% 20% Year ended 7/31/03 $13.75 9.13% $ 20,700 2.08% (0.94%) 2.08% 19% Year ended 7/31/04 $13.99 1.75% $ 20,947 2.07% (1.24%) 2.07% 35% Year ended 7/31/05 $15.52 10.95% $ 17,791 2.08% (0.85%) 2.08% 71% Year ended 7/31/06 $14.74 (5.03%) $ 13,259 2.08% (1.18%) 2.08% 108% ------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH FUND CLASS C SHARES Year ended 7/31/02 $12.28 (28.62%) $ 8,044 2.09% (1.24%) 2.09% 20% Year ended 7/31/03 $13.40 9.12% $ 8,380 2.08% (0.94%) 2.08% 19% Year ended 7/31/04 $13.63 1.72% $ 7,536 2.07% (1.24%) 2.07% 35% Year ended 7/31/05 $15.12 10.95% $ 5,238 2.08% (0.83%) 2.08% 71% Year ended 7/31/06 $14.36 (5.03%) $ 3,199 2.08% (1.17%) 2.08% 108% ------------------------------------------------------------------------------------------------------------------------------- QUALITY GROWTH FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $12.75 (19.05%)* $ 366 1.69%** (0.80%)** 1.69%** 20% Year ended 7/31/03 $13.98 9.65% $ 1,205 1.58% (0.48%) 1.58% 19% Year ended 7/31/04 $14.29 2.22% $ 3,127 1.57% (0.75%) 1.57% 35% Year ended 7/31/05 $15.92 11.57% $ 3,257 1.58% (0.38%) 1.58% 71% Year ended 7/31/06 $15.19 (4.59%) $ 1,877 1.58% (0.67%) 1.58% 108% -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 170-171 Spread 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 TOTAL VALUE, NET FROM RESULTING NET NET DIVIDENDS BEGINNING INVESTMENT INVESTMENT FROM INVESTMENT REALIZED AND OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME GAINS DISTRIBUTIONS ------------------------------------------------------------------------------------------------------------------------------------ LARGE CAP CORE FUND INSTITUTIONAL SHARES Year ended 7/31/02 $15.17 0.08 (3.66) (3.58) (0.08) (0.31) (0.39) Year ended 7/31/03 $11.20 0.12 0.63 0.75 (0.11) -- (0.11) Year ended 7/31/04 $11.84 0.12 1.36 1.48 (0.12) -- (0.12) Year ended 7/31/05 $13.20 0.18 1.76 1.94 (0.18) (0.35) (0.53) Year ended 7/31/06 $14.61 0.17 0.72 0.89 (0.16) (0.18) (0.34) ------------------------------------------------------------------------------------------------------------------------------------ LARGE CAP CORE FUND CLASS A SHARES Year ended 7/31/02 $15.02 0.05 (3.62) (3.57) (0.07) (0.31) (0.38) Year ended 7/31/03 $11.07 0.08 0.64 0.72 (0.09) -- (0.09) Year ended 7/31/04 $11.70 0.07 1.36 1.43 (0.09) -- (0.09) Year ended 7/31/05 $13.04 0.14 1.73 1.87 (0.14) (0.35) (0.49) Year ended 7/31/06 $14.42 0.13 0.71 0.84 (0.12) (0.18) (0.30) ------------------------------------------------------------------------------------------------------------------------------------ LARGE CAP CORE FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $13.86 0.02 (2.41) (2.39) (0.04) (0.31) (0.35) Year ended 7/31/03 $11.12 --^ 0.65 0.65 (0.02) -- (0.02) Year ended 7/31/04 $11.75 (0.02) 1.36 1.34 (0.01) -- (0.01) Year ended 7/31/05 $13.08 0.04 1.74 1.78 (0.05) (0.35) (0.40) Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18) (0.21) ------------------------------------------------------------------------------------------------------------------------------------ LARGE CAP CORE FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $13.86 0.03 (2.40) (2.37) (0.03) (0.31) (0.34) Year ended 7/31/03 $11.15 0.01 0.63 0.64 (0.03) -- (0.03) Year ended 7/31/04 $11.76 (0.01) 1.35 1.34 (0.02) -- (0.02) Year ended 7/31/05 $13.08 0.03 1.74 1.77 (0.04) (0.35) (0.39) Year ended 7/31/06 $14.46 0.01 0.72 0.73 (0.03) (0.18) (0.21) ------------------------------------------------------------------------------------------------------------------------------------ LARGE CAP CORE FUND ADVISOR SHARES Year ended 7/31/06 (h) $14.61 0.09 0.73 0.82 (0.09) (0.18) (0.27) RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS OF RATIOS OF NET TOTAL NET EXPENSES RATIOS OF NET EXPENSES ASSET RETURN ASSETS, TO INVESTMENT TO VALUE, (EXCLUDES END OF AVERAGE INCOME AVERAGE PORTFOLIO END OF SALES PERIOD NET TO AVERAGE NET TURNOVER PERIOD CHARGE) (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------- LARGE CAP CORE FUND INSTITUTIONAL SHARES Year ended 7/31/02 $11.20 (24.07%) $520,727 0.93% 0.64% 0.97% 5% Year ended 7/31/03 $11.84 6.79% $181,278 0.92% 0.99% 0.99% 13% Year ended 7/31/04 $13.20 12.50% $ 90,222 0.92% 0.84% 1.04% 101% Year ended 7/31/05 $14.61 14.92% $169,723 0.92% 1.17% 1.05% 102% Year ended 7/31/06 $15.16 6.12% $166,510 0.92% 1.09% 1.03% 126% ------------------------------------------------------------------------------------------------------------------------------- LARGE CAP CORE FUND CLASS A SHARES Year ended 7/31/02 $11.07 (24.25%) $ 23,320 1.18% 0.38% 1.22% 5% Year ended 7/31/03 $11.70 6.56% $ 21,288 1.17% 0.72% 1.24% 13% Year ended 7/31/04 $13.04 12.21% $ 25,573 1.17% 0.58% 1.29% 101% Year ended 7/31/05 $14.42 14.58% $ 24,026 1.17% 0.99% 1.31% 102% Year ended 7/31/06 $14.96 5.84% $ 20,923 1.17% 0.85% 1.27% 126% ------------------------------------------------------------------------------------------------------------------------------- LARGE CAP CORE FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $11.12 (15.86%)* $ 361 1.93%** (0.36%)** 1.99%** 5% Year ended 7/31/03 $11.75 5.90% $ 557 1.92% (0.05%) 1.98% 13% Year ended 7/31/04 $13.08 11.47% $ 783 1.92% (0.17%) 2.04% 101% Year ended 7/31/05 $14.46 13.67% $ 1,007 1.92% 0.18% 2.06% 102% Year ended 7/31/06 $14.98 5.07% $ 953 1.92% 0.09% 2.03% 126% ------------------------------------------------------------------------------------------------------------------------------- LARGE CAP CORE FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $11.15 (15.66%)* $ 20 1.90%** (0.12%)** 1.97%** 5% Year ended 7/31/03 $11.76 5.72% $ 29 1.92% (0.04%) 1.99% 13% Year ended 7/31/04 $13.08 11.38% $ 158 1.92% (0.23%) 2.03% 101% Year ended 7/31/05 $14.46 13.73% $ 193 1.92% 0.21% 2.06% 102% Year ended 7/31/06 $14.98 5.07% $ 112 1.92% 0.13% 2.02% 126% ------------------------------------------------------------------------------------------------------------------------------- LARGE CAP CORE FUND ADVISOR SHARES Year ended 7/31/06 (h) $15.16 5.63% $ 3 1.42% 0.58% 1.57% 126% -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 172-173 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 23.11 0.23 (5.70) (5.47) Year ended 7/31/03 $ 17.42 0.24 1.51 1.75 Year ended 7/31/04 $ 18.93 0.29@ 2.12 2.41 Year ended 7/31/05 $ 21.01 0.44@ 2.45 2.89 Year ended 7/31/06 $ 23.46 0.42@ 0.79 1.21 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS A SHARES Year ended 7/31/02 $ 23.10 0.17 (5.69) (5.52) Year ended 7/31/03 $ 17.38 0.20 1.50 1.70 Year ended 7/31/04 $ 18.87 0.25@ 2.10 2.35 Year ended 7/31/05 $ 20.94 0.37@ 2.46 2.83 Year ended 7/31/06 $ 23.38 0.36@ 0.80 1.16 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 21.07 0.06 (3.69) (3.63) Year ended 7/31/03 $ 17.32 0.07 1.50 1.57 Year ended 7/31/04 $ 18.78 0.09@ 2.09 2.18 Year ended 7/31/05 $ 20.83 0.20@ 2.44 2.64 Year ended 7/31/06 $ 23.24 0.18@ 0.79 0.97 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 21.07 0.10 (3.73) (3.63) Year ended 7/31/03 $ 17.33 0.08 1.49 1.57 Year ended 7/31/04 $ 18.78 0.09@ 2.10 2.19 Year ended 7/31/05 $ 20.84 0.20@ 2.44 2.64 Year ended 7/31/06 $ 23.26 0.18@ 0.78 0.96 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 21.07 0.13 (3.67) (3.54) Year ended 7/31/03 $ 17.39 0.18 1.48 1.66 Year ended 7/31/04 $ 18.86 0.20@ 2.10 2.30 Year ended 7/31/05 $ 20.92 0.31@ 2.45 2.76 Year ended 7/31/06 $ 23.35 0.30@ 0.79 1.09 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND SELECT SHARES 10/20/03(d) to 7/31/04 $ 19.86 0.22@ 1.18 1.40 Year ended 7/31/05 $ 21.00 0.41@ 2.47 2.88 Year ended 7/31/06 $ 23.45 0.40@ 0.80 1.20 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND PREFERRED SHARES 10/20/03(d) to 7/31/04 $ 19.86 0.22@ 1.18 1.40 Year ended 7/31/05 $ 21.01 0.43@ 2.41 2.84 Year ended 7/31/06 $ 23.45 0.39@ 0.79 1.18 ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND TRUST SHARES 10/20/03(d) to 7/31/04 $ 19.86 0.20@ 1.18 1.38 Year ended 7/31/05 $ 21.01 0.37@ 2.46 2.83 Year ended 7/31/06 $ 23.45 0.36@ 0.79 1.15 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, (EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.22) -- (0.22) $ 17.42 (23.82%) Year ended 7/31/03 (0.24) -- (0.24) $ 18.93 10.22% Year ended 7/31/04 (0.33) -- (0.33) $ 21.01 12.75% Year ended 7/31/05 (0.44) -- (0.44) $ 23.46 13.86% Year ended 7/31/06 (0.43) -- (0.43) $ 24.24 5.21% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS A SHARES Year ended 7/31/02 (0.20) -- (0.20) $ 17.38 (24.03%) Year ended 7/31/03 (0.21) -- (0.21) $ 18.87 9.90% Year ended 7/31/04 (0.28) -- (0.28) $ 20.94 12.48% Year ended 7/31/05 (0.39) -- (0.39) $ 23.38 13.58% Year ended 7/31/06 (0.38) -- (0.38) $ 24.16 4.97% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS B SHARES 10/29/01(d) to 7/31/02 (0.12) -- (0.12) $ 17.32 (15.32%)* Year ended 7/31/03 (0.11) -- (0.11) $ 18.78 9.14% Year ended 7/31/04 (0.13) -- (0.13) $ 20.83 11.64% Year ended 7/31/05 (0.23) -- (0.23) $ 23.24 12.74% Year ended 7/31/06 (0.20) -- (0.20) $ 24.01 4.17% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS C SHARES 10/29/01(d) to 7/31/02 (0.11) -- (0.11) $ 17.33 (15.30%)* Year ended 7/31/03 (0.12) -- (0.12) $ 18.78 9.14% Year ended 7/31/04 (0.13) -- (0.13) $ 20.84 11.66% Year ended 7/31/05 (0.22) -- (0.22) $ 23.26 12.72% Year ended 7/31/06 (0.19) -- (0.19) $ 24.03 4.15% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 (0.14) -- (0.14) $ 17.39 (14.89%)* Year ended 7/31/03 (0.19) -- (0.19) $ 18.86 9.68% Year ended 7/31/04 (0.24) -- (0.24) $ 20.92 12.21% Year ended 7/31/05 (0.33) -- (0.33) $ 23.35 13.28% Year ended 7/31/06 (0.31) -- (0.31) $ 24.13 4.70% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND SELECT SHARES 10/20/03(d) to 7/31/04 (0.26) -- (0.26) $ 21.00 7.03%* Year ended 7/31/05 (0.43) -- (0.43) $ 23.45 13.79% Year ended 7/31/06 (0.42) -- (0.42) $ 24.23 5.13% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND PREFERRED SHARES 10/20/03(d) to 7/31/04 (0.25) -- (0.25) $ 21.01 7.03%* Year ended 7/31/05 (0.40) -- (0.40) $ 23.45 13.62% Year ended 7/31/06 (0.40) -- (0.40) $ 24.23 5.06% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND TRUST SHARES 10/20/03(d) to 7/31/04 (0.23) -- (0.23) $ 21.01 6.95%* Year ended 7/31/05 (0.39) -- (0.39) $ 23.45 13.53% Year ended 7/31/06 (0.37) -- (0.37) $ 24.23 4.95% ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 608,556 0.41% 1.06% 0.56% 9% Year ended 7/31/03 $ 583,530 0.40% 1.42% 0.58% 2% Year ended 7/31/04 $ 193,734 0.27% 1.43% 0.58% 14% Year ended 7/31/05 $ 168,279 0.19% 1.97% 0.62% 4% Year ended 7/31/06 $ 184,177 0.19% 1.75% 0.60% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS A SHARES Year ended 7/31/02 $ 24,817 0.66% 0.81% 0.81% 9% Year ended 7/31/03 $ 33,402 0.65% 1.16% 0.83% 2% Year ended 7/31/04 $ 72,944 0.47% 1.19% 0.86% 14% Year ended 7/31/05 $ 70,261 0.44% 1.69% 0.87% 4% Year ended 7/31/06 $ 65,204 0.44% 1.52% 0.85% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 1,315 1.40%** 0.08%** 1.57%** 9% Year ended 7/31/03 $ 2,409 1.40% 0.40% 1.57% 2% Year ended 7/31/04 $ 3,776 1.23% 0.44% 1.60% 14% Year ended 7/31/05 $ 4,399 1.19% 0.93% 1.63% 4% Year ended 7/31/06 $ 4,229 1.19% 0.76% 1.60% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 635 1.41%** 0.11%** 1.58%** 9% Year ended 7/31/03 $ 1,711 1.40% 0.39% 1.57% 2% Year ended 7/31/04 $ 1,990 1.23% 0.44% 1.60% 14% Year ended 7/31/05 $ 2,301 1.19% 0.90% 1.63% 4% Year ended 7/31/06 $ 1,998 1.19% 0.77% 1.60% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 7 0.82%** 0.62%** 0.88%** 9% Year ended 7/31/03 $ 327 0.90% 0.84% 1.06% 2% Year ended 7/31/04 $ 1,296 0.71% 0.94% 1.11% 14% Year ended 7/31/05 $ 1,928 0.69% 1.40% 1.13% 4% Year ended 7/31/06 $ 1,819 0.69% 1.26% 1.10% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND SELECT SHARES 10/20/03(d) to 7/31/04 $ 14,315 0.27%** 1.32%** 0.69%** 14% Year ended 7/31/05 $ 18,690 0.27% 1.83% 0.71% 4% Year ended 7/31/06 $ 17,558 0.27% 1.67% 0.68% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND PREFERRED SHARES 10/20/03(d) to 7/31/04 $ 165,845 0.34%** 1.31%** 0.76%** 14% Year ended 7/31/05 $ 78,132 0.34% 1.98% 0.77% 4% Year ended 7/31/06 $ 64,939 0.34% 1.62% 0.75% 6% ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND TRUST SHARES 10/20/03(d) to 7/31/04 $ 80,759 0.44%** 1.22%** 0.86%** 14% Year ended 7/31/05 $ 76,295 0.44% 1.69% 0.87% 4% Year ended 7/31/06 $ 67,747 0.44% 1.52% 0.85% 6% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 174-175 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND INSTITUTIONAL SHARES Year ended 7/31/02(e) $ 13.39 0.14 (2.27) (2.13) Year ended 7/31/03 $ 10.91 0.15 0.49 0.64 Year ended 7/31/04 $ 11.38 0.13 0.64 0.77 Year ended 7/31/05 $ 12.00 0.24 0.80 1.04 Year ended 7/31/06 $ 12.79 0.25 (0.44) (0.19) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS A SHARES Year ended 7/31/02(e) $ 13.35 0.12 (2.27) (2.15) Year ended 7/31/03 $ 10.86 0.13 0.48 0.61 Year ended 7/31/04 $ 11.32 0.10 0.63 0.73 Year ended 7/31/05 $ 11.93 0.21 0.79 1.00 Year ended 7/31/06 $ 12.71 0.22 (0.43) (0.21) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS B SHARES Year ended 7/31/02(e) $ 13.28 0.02 (2.24) (2.22) Year ended 7/31/03 $ 10.75 0.04 0.48 0.52 Year ended 7/31/04 $ 11.19 0.01 0.63 0.64 Year ended 7/31/05 $ 11.80 0.11 0.79 0.90 Year ended 7/31/06 $ 12.57 0.12 (0.44) (0.32) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS C SHARES Year ended 7/31/02(e) $ 13.26 0.02 (2.24) (2.22) Year ended 7/31/03 $ 10.73 0.04 0.48 0.52 Year ended 7/31/04 $ 11.17 0.01 0.63 0.64 Year ended 7/31/05 $ 11.78 0.11 0.79 0.90 Year ended 7/31/06 $ 12.55 0.12 (0.44) (0.32) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND ADVISOR SHARES 10/29/01(d) to 7/31/02(e) $ 12.58 0.07 (1.50) (1.43) Year ended 7/31/03 $ 10.84 0.10 0.49 0.59 Year ended 7/31/04 $ 11.30 0.06 0.64 0.70 Year ended 7/31/05 $ 11.91 0.17 0.79 0.96 Year ended 7/31/06 $ 12.68 0.18 (0.43) (0.25) ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, (EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND INSTITUTIONAL SHARES Year ended 7/31/02(e) (0.15) (0.20) (0.35) $ 10.91 (16.34%) Year ended 7/31/03 (0.17) -- (0.17) $ 11.38 5.94% Year ended 7/31/04 (0.15) -- (0.15) $ 12.00 6.76% Year ended 7/31/05 (0.25) -- (0.25) $ 12.79 8.73% Year ended 7/31/06 (0.25) -- (0.25) $ 12.35 (1.51%) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS A SHARES Year ended 7/31/02(e) (0.14) (0.20) (0.34) $ 10.86 (16.53%) Year ended 7/31/03 (0.15) -- (0.15) $ 11.32 5.57% Year ended 7/31/04 (0.12) -- (0.12) $ 11.93 6.52% Year ended 7/31/05 (0.22) -- (0.22) $ 12.71 8.41% Year ended 7/31/06 (0.22) -- (0.22) $ 12.28 (1.71%) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS B SHARES Year ended 7/31/02(e) (0.11) (0.20) (0.31) $ 10.75 (17.14%) Year ended 7/31/03 (0.08) -- (0.08) $ 11.19 4.87% Year ended 7/31/04 (0.03) -- (0.03) $ 11.80 5.72% Year ended 7/31/05 (0.13) -- (0.13) $ 12.57 7.61% Year ended 7/31/06 (0.12) -- (0.12) $ 12.13 (2.57%) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS C SHARES Year ended 7/31/02(e) (0.11) (0.20) (0.31) $ 10.73 (17.16%) Year ended 7/31/03 (0.08) -- (0.08) $ 11.17 4.90% Year ended 7/31/04 (0.03) -- (0.03) $ 11.78 5.71% Year ended 7/31/05 (0.13) -- (0.13) $ 12.55 7.62% Year ended 7/31/06 (0.12) -- (0.12) $ 12.11 (2.56%) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND ADVISOR SHARES 10/29/01(d) to 7/31/02(e) (0.11) (0.20) (0.31) $ 10.84 (9.24%)* Year ended 7/31/03 (0.13) -- (0.13) $ 11.30 5.39% Year ended 7/31/04 (0.09) -- (0.09) $ 11.91 6.31% Year ended 7/31/05 (0.19) -- (0.19) $ 12.68 8.08% Year ended 7/31/06 (0.18) -- (0.18) $ 12.25 (1.97%) ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND INSTITUTIONAL SHARES Year ended 7/31/02(e) $ 189,730 1.10% 1.11% 1.13% 78% Year ended 7/31/03 $ 177,052 1.10% 1.39% 1.12% 133% Year ended 7/31/04 $ 98,282 1.13% 1.07% 1.13% 166% Year ended 7/31/05 $ 59,868 1.02% 1.89% 1.18% 146% Year ended 7/31/06 $ 35,740 0.97% 1.86% 1.22% 191% ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS A SHARES Year ended 7/31/02(e) $ 81,079 1.34% 0.86% 1.38% 78% Year ended 7/31/03 $ 73,287 1.35% 1.14% 1.37% 133% Year ended 7/31/04 $ 74,231 1.38% 0.79% 1.38% 166% Year ended 7/31/05 $ 59,274 1.27% 1.63% 1.44% 146% Year ended 7/31/06 $ 37,286 1.22% 1.61% 1.47% 191% ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS B SHARES Year ended 7/31/02(e) $ 14,007 2.10% 0.10% 2.14% 78% Year ended 7/31/03 $ 13,972 2.10% 0.39% 2.12% 133% Year ended 7/31/04 $ 13,117 2.13% 0.05% 2.13% 166% Year ended 7/31/05 $ 10,957 2.02% 0.86% 2.19% 146% Year ended 7/31/06 $ 7,536 1.97% 0.86% 2.22% 191% ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND CLASS C SHARES Year ended 7/31/02(e) $ 4,963 2.09% 0.11% 2.13% 78% Year ended 7/31/03 $ 5,747 2.10% 0.38% 2.12% 133% Year ended 7/31/04 $ 4,731 2.13% 0.05% 2.13% 166% Year ended 7/31/05 $ 4,046 2.02% 0.85% 2.19% 146% Year ended 7/31/06 $ 1,669 1.97% 0.86% 2.21% 191% ------------------------------------------------------------------------------------------------------------------------------------ BALANCED FUND ADVISOR SHARES 10/29/01(d) to 7/31/02(e) $ 38 1.63%** 0.55%** 1.68%** 78% Year ended 7/31/03 $ 104 1.60% 0.82% 1.61% 133% Year ended 7/31/04 $ 176 1.64% 0.52% 1.64% 166% Year ended 7/31/05 $ 185 1.52% 1.33% 1.69% 146% Year ended 7/31/06 $ 123 1.47% 1.37% 1.72% 191% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 176-177 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND INSTITUTIONAL SHARES Year ended 12/31/01 $ 4.91 0.01 1.11 1.12 1/1/02 to 7/31/02(c) $ 6.03 (0.01) (0.13) (0.14) Year ended 7/31/03 $ 5.89 (0.04)@ 2.40 2.36 Year ended 7/31/04 $ 8.20 (0.02)@ 2.66 2.64 Year ended 7/31/05 $ 10.32 (0.01)@ 1.41 1.40 Year ended 7/31/06 $ 11.00 0.02@ 0.17 0.19 ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS A SHARES 8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03 1/1/02 to 7/31/02(c) $ 5.96 (0.02) (0.12) (0.14) Year ended 7/31/03 $ 5.82 (0.06)@ 2.37 2.31 Year ended 7/31/04 $ 8.08 (0.05)@ 2.63 2.58 Year ended 7/31/05 $ 10.14 (0.03)@ 1.39 1.36 Year ended 7/31/06 $ 10.78 --^@ 0.15 0.15 ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS B SHARES 8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.03 0.02 1/1/02 to 7/31/02(c) $ 5.95 (0.03) (0.13) (0.16) Year ended 7/31/03 $ 5.79 (0.10)@ 2.33 2.23 Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51 Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32 Year ended 7/31/06 $ 10.56 (0.06)@ 0.15 0.09 ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS C SHARES 8/13/01(d) to 12/31/01 $ 5.93 (0.01) 0.04 0.03 1/1/02 to 7/31/02(c) $ 5.96 (0.03) (0.14) (0.17) Year ended 7/31/03 $ 5.79 (0.10)@ 2.33 2.23 Year ended 7/31/04 $ 7.97 (0.08)@ 2.59 2.51 Year ended 7/31/05 $ 9.96 (0.04)@ 1.36 1.32 Year ended 7/31/06 $ 10.56 (0.06)@ 0.15 0.09 ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND ADVISOR SHARES Year ended 12/31/01 $ 4.88 (0.02) 1.10 1.08 1/1/02 to 7/31/02(c) $ 5.96 (0.04) (0.11) (0.15) Year ended 7/31/03 $ 5.81 (0.07)@ 2.36 2.29 Year ended 7/31/04 $ 8.05 (0.06)@ 2.62 2.56 Year ended 7/31/05 $ 10.09 (0.03)@ 1.37 1.34 Year ended 7/31/06 $ 10.71 (0.03)@ 0.16 0.13 ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND INSTITUTIONAL SHARES 4/1/03(d) to 7/31/03 $ 15.00 --^ 2.54 2.54 Year ended 7/31/04 $ 17.54 (0.03)@ 3.50 3.47 Year ended 7/31/05 $ 20.01 (0.04)@ 4.51 4.47 Year ended 7/31/06 $ 22.82 0.09 0.46 0.55 ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS A SHARES 4/1/03(d) to 7/31/03 $ 15.00 (0.01) 2.53 2.52 Year ended 7/31/04 $ 17.52 (0.11)@ 3.52 3.41 Year ended 7/31/05 $ 19.95 (0.10)@ 4.49 4.39 Year ended 7/31/06 $ 22.68 0.02 0.47 0.49 ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS B SHARES 4/1/03(d) to 7/31/03 $ 15.00 (0.03) 2.51 2.48 Year ended 7/31/04 $ 17.48 (0.25)@ 3.51 3.26 Year ended 7/31/05 $ 19.76 (0.24)@ 4.43 4.19 Year ended 7/31/06 $ 22.29 (0.13) 0.45 0.32 ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS C SHARES 4/1/03(d) to 7/31/03 $ 15.00 (0.03) 2.51 2.48 Year ended 7/31/04 $ 17.48 (0.26)@ 3.50 3.24 Year ended 7/31/05 $ 19.74 (0.24)@ 4.41 4.17 Year ended 7/31/06 $ 22.25 (0.14) 0.46 0.32 ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND ADVISOR SHARES 4/1/03(d) to 7/31/03 $ 15.00 (0.01) 2.52 2.51 Year ended 7/31/04 $ 17.51 (0.16)@ 3.52 3.36 Year ended 7/31/05 $ 19.89 (0.15)@ 4.48 4.33 Year ended 7/31/06 $ 22.56 (0.02) 0.45 0.43 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, (EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND INSTITUTIONAL SHARES Year ended 12/31/01 -- --^ --^ $ 6.03 22.90% 1/1/02 to 7/31/02(c) -- -- -- $ 5.89 (2.32%)* Year ended 7/31/03 -- (0.05) (0.05) $ 8.20 40.26% Year ended 7/31/04 -- (0.52) (0.52) $ 10.32 32.84% Year ended 7/31/05 -- (0.72) (0.72) $ 11.00 13.86% Year ended 7/31/06 (0.01) (3.13) (3.14) $ 8.05 1.93% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS A SHARES 8/13/01(d) to 12/31/01 -- -- -- $ 5.96 0.56%* 1/1/02 to 7/31/02(c) -- -- -- $ 5.82 (2.35%)* Year ended 7/31/03 -- (0.05) (0.05) $ 8.08 39.88% Year ended 7/31/04 -- (0.52) (0.52) $ 10.14 32.56% Year ended 7/31/05 -- (0.72) (0.72) $ 10.78 13.60% Year ended 7/31/06 --^ (3.13) (3.13) $ 7.80 1.59% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS B SHARES 8/13/01(d) to 12/31/01 -- -- -- $ 5.95 0.39%* 1/1/02 to 7/31/02(c) -- -- -- $ 5.79 (2.69%)* Year ended 7/31/03 -- (0.05) (0.05) $ 7.97 38.70% Year ended 7/31/04 -- (0.52) (0.52) $ 9.96 32.13% Year ended 7/31/05 -- (0.72) (0.72) $ 10.56 13.54% Year ended 7/31/06 -- (3.13) (3.13) $ 7.52 0.86% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS C SHARES 8/13/01(d) to 12/31/01 -- -- -- $ 5.96 0.56%* 1/1/02 to 7/31/02(c) -- -- -- $ 5.79 (2.85%)* Year ended 7/31/03 -- (0.05) (0.05) $ 7.97 38.70% Year ended 7/31/04 -- (0.52) (0.52) $ 9.96 32.13% Year ended 7/31/05 -- (0.72) (0.72) $ 10.56 13.54% Year ended 7/31/06 -- (3.13) (3.13) $ 7.52 0.86% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND ADVISOR SHARES Year ended 12/31/01 -- --^ --^ $ 5.96 22.22% 1/1/02 to 7/31/02(c) -- -- -- $ 5.81 (2.52%)* Year ended 7/31/03 -- (0.05) (0.05) $ 8.05 39.60% Year ended 7/31/04 -- (0.52) (0.52) $ 10.09 32.44% Year ended 7/31/05 -- (0.72) (0.72) $ 10.71 13.57% Year ended 7/31/06 -- (3.13) (3.13) $ 7.71 1.30% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND INSTITUTIONAL SHARES 4/1/03(d) to 7/31/03 -- -- -- $ 17.54 16.87%* Year ended 7/31/04 (0.02) (0.98) (1.00) $ 20.01 20.11% Year ended 7/31/05 -- (1.66) (1.66) $ 22.82 23.59% Year ended 7/31/06 (0.05) (2.43) (2.48) $ 20.89 2.62% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS A SHARES 4/1/03(d) to 7/31/03 -- -- -- $ 17.52 16.73%* Year ended 7/31/04 --^ (0.98) (0.98) $ 19.95 19.81% Year ended 7/31/05 -- (1.66) (1.66) $ 22.68 23.24% Year ended 7/31/06 -- (2.43) (2.43) $ 20.74 2.36% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS B SHARES 4/1/03(d) to 7/31/03 -- -- -- $ 17.48 16.47%* Year ended 7/31/04 -- (0.98) (0.98) $ 19.76 19.02% Year ended 7/31/05 -- (1.66) (1.66) $ 22.29 22.35% Year ended 7/31/06 -- (2.43) (2.43) $ 20.18 1.59% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS C SHARES 4/1/03(d) to 7/31/03 -- -- -- $ 17.48 16.47%* Year ended 7/31/04 -- (0.98) (0.98) $ 19.74 18.85% Year ended 7/31/05 -- (1.66) (1.66) $ 22.25 22.39% Year ended 7/31/06 -- (2.43) (2.43) $ 20.14 1.59% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND ADVISOR SHARES 4/1/03(d) to 7/31/03 -- -- -- $ 17.51 16.67%* Year ended 7/31/04 -- (0.98) (0.98) $ 19.89 19.52% Year ended 7/31/05 -- (1.66) (1.66) $ 22.56 23.00% Year ended 7/31/06 -- (2.43) (2.43) $ 20.56 2.10% ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND INSTITUTIONAL SHARES Year ended 12/31/01 $ 14,957 1.29% 0.21% 1.35% 47% 1/1/02 to 7/31/02(c) $ 45,538 1.40%** (0.51%)** 1.68%** 16% Year ended 7/31/03 $ 100,676 1.40% (0.68%) 1.47% 28% Year ended 7/31/04 $ 155,798 1.33% (0.25%) 1.33% 23% Year ended 7/31/05 $ 98,885 1.35% (0.07%) 1.35% 12% Year ended 7/31/06 $ 72,981 1.37% 0.23% 1.40% 42% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS A SHARES 8/13/01(d) to 12/31/01 $ 862 1.59%** (0.36%)** 1.78%** 47% 1/1/02 to 7/31/02(c) $ 5,030 1.66%** (0.77%)** 1.95%** 16% Year ended 7/31/03 $ 18,297 1.65% (0.95%) 1.69% 28% Year ended 7/31/04 $ 41,402 1.58% (0.49%) 1.58% 23% Year ended 7/31/05 $ 29,172 1.60% (0.31%) 1.60% 12% Year ended 7/31/06 $ 17,759 1.62% (0.05%) 1.65% 42% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS B SHARES 8/13/01(d) to 12/31/01 $ 352 2.31%** (1.08%)** 2.52%** 47% 1/1/02 to 7/31/02(c) $ 2,709 2.42%** (1.50%)** 2.72%** 16% Year ended 7/31/03 $ 4,254 2.40% (1.66%) 2.47% 28% Year ended 7/31/04 $ 6,937 1.89% (0.81%) 2.33% 23% Year ended 7/31/05 $ 7,348 1.73% (0.40%) 2.36% 12% Year ended 7/31/06 $ 6,032 2.37% (0.73%) 2.40% 42% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND CLASS C SHARES 8/13/01(d) to 12/31/01 $ 59 2.32%** (0.97%)** 2.57%** 47% 1/1/02 to 7/31/02(c) $ 712 2.42%** (1.52%)** 2.73%** 16% Year ended 7/31/03 $ 1,166 2.40% (1.66%) 2.47% 28% Year ended 7/31/04 $ 5,624 1.81% (0.82%) 2.33% 23% Year ended 7/31/05 $ 6,143 1.73% (0.39%) 2.36% 12% Year ended 7/31/06 $ 5,161 2.37% (0.71%) 2.40% 42% ------------------------------------------------------------------------------------------------------------------------------------ MICRO CAP VALUE FUND ADVISOR SHARES Year ended 12/31/01 $ 19,196 1.79% (0.29%) 1.85% 47% 1/1/02 to 7/31/02(c) $ 18,905 1.90%** (1.02%)** 2.12%** 16% Year ended 7/31/03 $ 25,342 1.90% (1.15%) 1.97% 28% Year ended 7/31/04 $ 41,514 1.68% (0.61%) 1.83% 23% Year ended 7/31/05 $ 36,031 1.64% (0.34%) 1.85% 12% Year ended 7/31/06 $ 17,297 1.87% (0.34%) 1.90% 42% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND INSTITUTIONAL SHARES 4/1/03(d) to 7/31/03 $ 72,783 1.24%** 0.03%** 1.60%** 39% Year ended 7/31/04 $ 107,344 1.25% (0.15%) 1.41% 279% Year ended 7/31/05 $ 158,505 1.20% (0.20%) 1.20% 105% Year ended 7/31/06 $ 116,503 1.21% 0.39% 1.24% 99% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS A SHARES 4/1/03(d) to 7/31/03 $ 216 1.47%** (0.21%)** 1.86%** 39% Year ended 7/31/04 $ 2,277 1.49% (0.53%) 1.63% 279% Year ended 7/31/05 $ 2,715 1.45% (0.48%) 1.45% 105% Year ended 7/31/06 $ 2,434 1.46% 0.11% 1.49% 99% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS B SHARES 4/1/03(d) to 7/31/03 $ 103 2.22%** (1.07%)** 2.60%** 39% Year ended 7/31/04 $ 503 2.24% (1.26%) 2.38% 279% Year ended 7/31/05 $ 1,142 2.19% (1.18%) 2.20% 105% Year ended 7/31/06 $ 1,221 2.21% (0.64%) 2.24% 99% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND CLASS C SHARES 4/1/03(d) to 7/31/03 $ 15 2.23%** (0.97%)** 2.62%** 39% Year ended 7/31/04 $ 561 2.24% (1.31%) 2.38% 279% Year ended 7/31/05 $ 927 2.19% (1.21%) 2.20% 105% Year ended 7/31/06 $ 839 2.21% (0.64%) 2.24% 99% ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP VALUE FUND ADVISOR SHARES 4/1/03(d) to 7/31/03 $ 216 1.72%** (0.51%)** 2.11%** 39% Year ended 7/31/04 $ 1,606 1.74% (0.79%) 1.88% 279% Year ended 7/31/05 $ 1,979 1.70% (0.72%) 1.70% 105% Year ended 7/31/06 $ 1,185 1.71% (0.09%) 1.74% 99% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 178-179 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND INSTITUTIONAL SHARES Year ended 12/31/01 $ 18.64 0.05 1.43 1.48 1/1/02 to 7/31/02(c) $ 19.14 -- (3.28) (3.28) Year ended 7/31/03 $ 15.86 0.02 3.14 3.16 Year ended 7/31/04 $ 19.02 0.06 3.62 3.68 Year ended 7/31/05 $ 22.58 0.10 4.85 4.95 Year ended 7/31/06 $ 26.04 0.26 1.77 2.03 ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS A SHARES 8/13/01(d) to 12/31/01 $ 19.44 0.01 0.57 0.58 1/1/02 to 7/31/02(c) $ 19.05 (0.02) (3.26) (3.28) Year ended 7/31/03 $ 15.77 --^ 3.08 3.08 Year ended 7/31/04 $ 18.85 --^ 3.59 3.59 Year ended 7/31/05 $ 22.36 0.04 4.79 4.83 Year ended 7/31/06 $ 25.76 0.19 1.77 1.96 ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS B SHARES 8/13/01(d) to 12/31/01 $ 19.44 (0.02) 0.56 0.54 1/1/02 to 7/31/02(c) $ 19.03 (0.08) (3.26) (3.34) Year ended 7/31/03 $ 15.69 (0.13) 3.07 2.94 Year ended 7/31/04 $ 18.63 (0.14) 3.52 3.38 Year ended 7/31/05 $ 21.94 (0.14) 4.69 4.55 Year ended 7/31/06 $ 25.11 --^ 1.71 1.71 ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS C SHARES 8/13/01(d) to 12/31/01 $ 19.44 (0.01) 0.55 0.54 1/1/02 to 7/31/02(c) $ 19.02 (0.08) (3.25) (3.33) Year ended 7/31/03 $ 15.69 (0.12) 3.04 2.92 Year ended 7/31/04 $ 18.61 (0.13) 3.52 3.39 Year ended 7/31/05 $ 21.93 (0.15) 4.69 4.54 Year ended 7/31/06 $ 25.09 --^ 1.71 1.71 ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND ADVISOR SHARES Year ended 12/31/01 $ 18.61 0.02 1.37 1.39 1/1/02 to 7/31/02(c) $ 19.09 (0.04) (3.27) (3.31) Year ended 7/31/03 $ 15.78 (0.05) 3.09 3.04 Year ended 7/31/04 $ 18.82 (0.05) 3.59 3.54 Year ended 7/31/05 $ 22.29 (0.02) 4.77 4.75 Year ended 7/31/06 $ 25.65 0.13 1.75 1.88 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, (EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND INSTITUTIONAL SHARES Year ended 12/31/01 (0.07) (0.91) (0.98) $ 19.14 7.91% 1/1/02 to 7/31/02(c) -- -- -- $ 15.86 (17.14%)* Year ended 7/31/03 -- -- -- $ 19.02 19.92% Year ended 7/31/04 (0.05) (0.07) (0.12) $ 22.58 19.36% Year ended 7/31/05 (0.11) (1.38) (1.49) $ 26.04 22.51% Year ended 7/31/06 (0.24) (2.15) (2.39) $ 25.68 8.38% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS A SHARES 8/13/01(d) to 12/31/01 (0.06) (0.91) (0.97) $ 19.05 2.90%* 1/1/02 to 7/31/02(c) -- -- -- $ 15.77 (17.22%)* Year ended 7/31/03 -- -- -- $ 18.85 19.53% Year ended 7/31/04 (0.01) (0.07) (0.08) $ 22.36 19.07% Year ended 7/31/05 (0.05) (1.38) (1.43) $ 25.76 22.22% Year ended 7/31/06 (0.18) (2.15) (2.33) $ 25.39 8.16% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS B SHARES 8/13/01(d) to 12/31/01 (0.04) (0.91) (0.95) $ 19.03 2.76%* 1/1/02 to 7/31/02(c) -- -- -- $ 15.69 (17.55%)* Year ended 7/31/03 -- -- -- $ 18.63 18.74% Year ended 7/31/04 -- (0.07) (0.07) $ 21.94 18.15% Year ended 7/31/05 -- (1.38) (1.38) $ 25.11 21.33% Year ended 7/31/06 (0.06) (2.15) (2.21) $ 24.61 7.33% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS C SHARES 8/13/01(d) to 12/31/01 (0.04) (0.92) (0.96) $ 19.02 2.72%* 1/1/02 to 7/31/02(c) -- -- -- $ 15.69 (17.51%)* Year ended 7/31/03 -- -- -- $ 18.61 18.61% Year ended 7/31/04 -- (0.07) (0.07) $ 21.93 18.22% Year ended 7/31/05 -- (1.38) (1.38) $ 25.09 21.24% Year ended 7/31/06 (0.06) (2.15) (2.21) $ 24.59 7.33% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND ADVISOR SHARES Year ended 12/31/01 -- (0.91) (0.91) $ 19.09 7.47% 1/1/02 to 7/31/02(c) -- -- -- $ 15.78 (17.34%)* Year ended 7/31/03 -- -- -- $ 18.82 19.26% Year ended 7/31/04 -- (0.07) (0.07) $ 22.29 18.81% Year ended 7/31/05 (0.01) (1.38) (1.39) $ 25.65 21.90% Year ended 7/31/06 (0.12) (2.15) (2.27) $ 25.26 7.87% ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND INSTITUTIONAL SHARES Year ended 12/31/01 $ 18,069 1.23% 0.59% 1.26% 80% 1/1/02 to 7/31/02(c) $ 49,844 1.33%** 0.01%** 1.55%** 25% Year ended 7/31/03 $ 182,485 1.33% 0.17% 1.36% 23% Year ended 7/31/04 $ 235,228 1.30% 0.29% 1.30% 17% Year ended 7/31/05 $ 270,131 1.30% 0.41% 1.30% 24% Year ended 7/31/06 $ 226,189 1.29% 0.99% 1.31% 40% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS A SHARES 8/13/01(d) to 12/31/01 $ 6,395 1.54%** 0.14%** 1.63%** 80% 1/1/02 to 7/31/02(c) $ 18,042 1.59%** (0.27%)** 1.79%** 25% Year ended 7/31/03 $ 19,667 1.58% 0.01% 1.64% 23% Year ended 7/31/04 $ 33,156 1.55% 0.04% 1.55% 17% Year ended 7/31/05 $ 39,433 1.55% 0.15% 1.55% 24% Year ended 7/31/06 $ 38,714 1.54% 0.74% 1.56% 40% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS B SHARES 8/13/01(d) to 12/31/01 $ 4,733 2.28%** (0.59%)** 2.36%** 80% 1/1/02 to 7/31/02(c) $ 11,522 2.34%** (1.02%)** 2.53%** 25% Year ended 7/31/03 $ 14,087 2.33% (0.81%) 2.39% 23% Year ended 7/31/04 $ 18,795 2.30% (0.71%) 2.30% 17% Year ended 7/31/05 $ 22,278 2.30% (0.60%) 2.30% 24% Year ended 7/31/06 $ 21,679 2.29% (0.01%) 2.31% 40% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND CLASS C SHARES 8/13/01(d) to 12/31/01 $ 497 2.23%** (0.60%)** 2.33%** 80% 1/1/02 to 7/31/02(c) $ 1,593 2.34%** (1.08%)** 2.53%** 25% Year ended 7/31/03 $ 2,036 2.33% (0.81%) 2.39% 23% Year ended 7/31/04 $ 3,824 2.30% (0.71%) 2.30% 17% Year ended 7/31/05 $ 4,553 2.30% (0.58%) 2.30% 24% Year ended 7/31/06 $ 4,455 2.29% (0.01%) 2.31% 40% ------------------------------------------------------------------------------------------------------------------------------------ MULTI CAP VALUE FUND ADVISOR SHARES Year ended 12/31/01 $ 47,698 1.73% 0.09% 1.76% 80% 1/1/02 to 7/31/02(c) $ 38,419 1.83%** (0.36%)** 1.98%** 25% Year ended 7/31/03 $ 37,047 1.83% (0.30%) 1.89% 23% Year ended 7/31/04 $ 39,983 1.80% (0.20%) 1.80% 17% Year ended 7/31/05 $ 42,656 1.80% (0.09%) 1.80% 24% Year ended 7/31/06 $ 32,861 1.79% 0.48% 1.81% 40% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 180-181 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 13.12 0.09 (1.73) (1.64) Year ended 7/31/03 $ 10.85 0.18@ 1.14 1.32 Year ended 7/31/04 $ 11.85 0.15 2.08 2.23 Year ended 7/31/05 $ 13.52 0.18 1.95 2.13 Year ended 7/31/06 $ 15.08 0.21 1.07 1.28 ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES Year ended 7/31/02 $ 13.11 0.07 (1.74) (1.67) Year ended 7/31/03 $ 10.83 0.16@ 1.14 1.30 Year ended 7/31/04 $ 11.83 0.12 2.08 2.20 Year ended 7/31/05 $ 13.50 0.14 1.94 2.08 Year ended 7/31/06 $ 15.05 0.17 1.07 1.24 ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES Year ended 7/31/02 $ 13.24 (0.02) (1.74) (1.76) Year ended 7/31/03 $ 10.93 0.08@ 1.15 1.23 Year ended 7/31/04 $ 11.93 0.03 2.09 2.12 Year ended 7/31/05 $ 13.61 0.04 1.95 1.99 Year ended 7/31/06 $ 15.17 0.06 1.08 1.14 ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES Year ended 7/31/02 $ 13.10 (0.03) (1.73) (1.76) Year ended 7/31/03 $ 10.80 0.08@ 1.11 1.19 Year ended 7/31/04 $ 11.76 0.02 2.07 2.09 Year ended 7/31/05 $ 13.40 0.03 1.94 1.97 Year ended 7/31/06 $ 14.94 0.06 1.06 1.12 ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 15.05 0.11 1.09 1.20 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, (EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.10) (0.53) (0.63) $ 10.85 (12.96%) Year ended 7/31/03 (0.16) (0.16) (0.32) $ 11.85 12.53% Year ended 7/31/04 (0.16) (0.40) (0.56) $ 13.52 19.22% Year ended 7/31/05 (0.18) (0.39) (0.57) $ 15.08 16.07% Year ended 7/31/06 (0.20) (1.44) (1.64) $ 14.72 9.29% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES Year ended 7/31/02 (0.08) (0.53) (0.61) $ 10.83 (13.24%) Year ended 7/31/03 (0.14) (0.16) (0.30) $ 11.83 12.30% Year ended 7/31/04 (0.13) (0.40) (0.53) $ 13.50 18.96% Year ended 7/31/05 (0.14) (0.39) (0.53) $ 15.05 15.74% Year ended 7/31/06 (0.16) (1.44) (1.60) $ 14.69 9.05% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES Year ended 7/31/02 (0.02) (0.53) (0.55) $ 10.93 (13.84%) Year ended 7/31/03 (0.07) (0.16) (0.23) $ 11.93 11.50% Year ended 7/31/04 (0.04) (0.40) (0.44) $ 13.61 18.07% Year ended 7/31/05 (0.04) (0.39) (0.43) $ 15.17 14.85% Year ended 7/31/06 (0.06) (1.44) (1.50) $ 14.81 8.22% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES Year ended 7/31/02 (0.01) (0.53) (0.54) $ 10.80 (13.85%) Year ended 7/31/03 (0.07) (0.16) (0.23) $ 11.76 11.28% Year ended 7/31/04 (0.05) (0.40) (0.45) $ 13.40 18.07% Year ended 7/31/05 (0.04) (0.39) (0.43) $ 14.94 14.96% Year ended 7/31/06 (0.06) (1.44) (1.50) $ 14.56 8.21% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.15) (1.44) (1.59) $ 14.66 8.72% ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 80,906 1.16% 0.83% 1.19% 22% Year ended 7/31/03 $ 335,967 1.08% 1.74% 1.10% 79% Year ended 7/31/04 $ 632,120 1.07% 1.27% 1.07% 22% Year ended 7/31/05 $ 574,251 1.07% 1.27% 1.07% 31% Year ended 7/31/06 $ 581,507 1.07% 1.40% 1.07% 57% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS A SHARES Year ended 7/31/02 $ 12,579 1.40% 0.58% 1.43% 22% Year ended 7/31/03 $ 14,100 1.33% 1.51% 1.36% 79% Year ended 7/31/04 $ 21,738 1.32% 1.00% 1.32% 22% Year ended 7/31/05 $ 24,805 1.32% 1.01% 1.32% 31% Year ended 7/31/06 $ 22,968 1.32% 1.16% 1.32% 57% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS B SHARES Year ended 7/31/02 $ 2,862 2.17% (0.17%) 2.20% 22% Year ended 7/31/03 $ 3,408 2.08% 0.76% 2.11% 79% Year ended 7/31/04 $ 4,807 2.07% 0.27% 2.07% 22% Year ended 7/31/05 $ 5,739 2.07% 0.26% 2.07% 31% Year ended 7/31/06 $ 5,783 2.07% 0.40% 2.07% 57% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND CLASS C SHARES Year ended 7/31/02 $ 577 2.16% (0.18%) 2.19% 22% Year ended 7/31/03 $ 884 2.08% 0.75% 2.10% 79% Year ended 7/31/04 $ 1,832 2.06% 0.27% 2.06% 22% Year ended 7/31/05 $ 2,313 2.07% 0.26% 2.07% 31% Year ended 7/31/06 $ 2,227 2.07% 0.41% 2.07% 57% ------------------------------------------------------------------------------------------------------------------------------------ DISCIPLINED LARGE CAP VALUE FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 148 1.57% 0.84% 1.57% 57% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 182-183 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.04# 1.35# 1.39 Year ended 7/31/04 $ 11.35 0.14# 1.31# 1.45 Year ended 7/31/05 $ 12.49 0.16# 1.94# 2.10 Year ended 7/31/06 $ 14.36 0.21# 0.52# 0.73 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.33# 1.35 Year ended 7/31/04 $ 11.33 0.11# 1.30# 1.41 Year ended 7/31/05 $ 12.45 0.12# 1.95# 2.07 Year ended 7/31/06 $ 14.32 0.17# 0.51# 0.68 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 10.00 (0.02)# 1.28# 1.26 Year ended 7/31/04 $ 11.26 0.05# 1.27# 1.32 Year ended 7/31/05 $ 12.30 0.03# 1.90# 1.93 Year ended 7/31/06 $ 14.08 0.06# 0.51# 0.57 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 10.00 (0.01)# 1.28# 1.27 Year ended 7/31/04 $ 11.26 0.03# 1.28# 1.31 Year ended 7/31/05 $ 12.30 0.03# 1.90# 1.93 Year ended 7/31/06 $ 14.08 0.06# 0.51# 0.57 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 14.36 0.15# 0.50# 0.65 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.09# 1.58# 1.67 Year ended 7/31/04 $ 11.59 0.19# 1.03# 1.22 Year ended 7/31/05 $ 12.48 0.22# 1.50# 1.72 Year ended 7/31/06 $ 13.91 0.28# 0.34# 0.62 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.07# 1.58# 1.65 Year ended 7/31/04 $ 11.58 0.16# 1.04# 1.20 Year ended 7/31/05 $ 12.47 0.19# 1.49# 1.68 Year ended 7/31/06 $ 13.89 0.26# 0.33# 0.59 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57 Year ended 7/31/04 $ 11.55 0.07# 1.03# 1.10 Year ended 7/31/05 $ 12.42 0.09# 1.48# 1.57 Year ended 7/31/06 $ 13.83 0.15# 0.34# 0.49 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.02# 1.55# 1.57 Year ended 7/31/04 $ 11.55 0.07# 1.02# 1.09 Year ended 7/31/05 $ 12.41 0.09# 1.49# 1.58 Year ended 7/31/06 $ 13.83 0.15# 0.33# 0.48 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 13.91 0.24# 0.32# 0.56 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, (EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.04) -- (0.04) $ 11.35 13.92%* Year ended 7/31/04 (0.13) (0.18) (0.31) $ 12.49 12.83% Year ended 7/31/05 (0.15) (0.08) (0.23) $ 14.36 16.91% Year ended 7/31/06 (0.20) (0.31) (0.51) $ 14.58 5.13% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 (0.02) -- (0.02) $ 11.33 13.57%* Year ended 7/31/04 (0.11) (0.18) (0.29) $ 12.45 12.49% Year ended 7/31/05 (0.12) (0.08) (0.20) $ 14.32 16.59% Year ended 7/31/06 (0.16) (0.31) (0.47) $ 14.53 4.80% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 --^ -- -- $ 11.26 12.65%* Year ended 7/31/04 (0.10) (0.18) (0.28) $ 12.30 11.70% Year ended 7/31/05 (0.07) (0.08) (0.15) $ 14.08 15.73% Year ended 7/31/06 (0.10) (0.31) (0.41) $ 14.24 4.10% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 (0.01) -- (0.01) $ 11.26 12.74%* Year ended 7/31/04 (0.09) (0.18) (0.27) $ 12.30 11.67% Year ended 7/31/05 (0.07) (0.08) (0.15) $ 14.08 15.80% Year ended 7/31/06 (0.10) (0.31) (0.41) $ 14.24 4.11% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) (0.16) (0.31) (0.47) $ 14.54 4.61% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.08) -- (0.08) $ 11.59 16.78%* Year ended 7/31/04 (0.19) (0.14) (0.33) $ 12.48 10.54% Year ended 7/31/05 (0.21) (0.08) (0.29) $ 13.91 13.87% Year ended 7/31/06 (0.28) (0.27) (0.55) $ 13.98 4.60% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 (0.07) -- (0.07) $ 11.58 16.51%* Year ended 7/31/04 (0.17) (0.14) (0.31) $ 12.47 10.32% Year ended 7/31/05 (0.18) (0.08) (0.26) $ 13.89 13.53% Year ended 7/31/06 (0.25) (0.27) (0.52) $ 13.96 4.36% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 (0.02) -- (0.02) $ 11.55 15.70%* Year ended 7/31/04 (0.09) (0.14) (0.23) $ 12.42 9.47% Year ended 7/31/05 (0.08) (0.08) (0.16) $ 13.83 12.68% Year ended 7/31/06 (0.15) (0.27) (0.42) $ 13.90 3.63% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 (0.02) -- (0.02) $ 11.55 15.71%* Year ended 7/31/04 (0.09) (0.14) (0.23) $ 12.41 9.45% Year ended 7/31/05 (0.08) (0.08) (0.16) $ 13.83 12.75% Year ended 7/31/06 (0.15) (0.27) (0.42) $ 13.89 3.53% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) (0.25) (0.27) (0.52) $ 13.95 4.11% ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 32,421 0.08%** 0.45%** 0.78%** 79% Year ended 7/31/04 $ 52,085 0.08% 1.09% 0.51% 22% Year ended 7/31/05 $ 70,072 0.08% 1.15% 0.47% 35% Year ended 7/31/06 $ 101,365 0.08% 1.38% 0.48% 14% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10,090 0.33%** 0.16%** 1.24%** 79% Year ended 7/31/04 $ 38,249 0.33% 0.80% 0.76% 22% Year ended 7/31/05 $ 47,172 0.33% 0.91% 0.72% 35% Year ended 7/31/06 $ 50,416 0.33% 1.15% 0.72% 14% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 3,587 1.08%** (0.54%)** 2.06%** 79% Year ended 7/31/04 $ 12,106 1.08% 0.03% 1.51% 22% Year ended 7/31/05 $ 16,203 1.08% 0.15% 1.47% 35% Year ended 7/31/06 $ 16,926 1.08% 0.39% 1.47% 14% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 532 1.08%** (0.62%)** 2.20%** 79% Year ended 7/31/04 $ 1,916 1.08% 0.06% 1.51% 22% Year ended 7/31/05 $ 2,164 1.08% 0.14% 1.47% 35% Year ended 7/31/06 $ 2,661 1.08% 0.37% 1.47% 14% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL AGGRESSIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 785 0.58% 0.41% 1.00% 14% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 62,677 0.08%** 1.15%** 0.54%** 55% Year ended 7/31/04 $ 82,264 0.08% 1.56% 0.45% 16% Year ended 7/31/05 $ 110,379 0.08% 1.62% 0.44% 35% Year ended 7/31/06 $ 135,542 0.08% 2.09% 0.45% 19% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 33,806 0.33%** 0.86%** 0.90%** 55% Year ended 7/31/04 $ 94,739 0.33% 1.32% 0.70% 16% Year ended 7/31/05 $ 125,130 0.33% 1.38% 0.69% 35% Year ended 7/31/06 $ 128,564 0.33% 1.86% 0.70% 19% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 12,606 1.08%** 0.10%** 1.60%** 55% Year ended 7/31/04 $ 39,636 1.08% 0.53% 1.45% 16% Year ended 7/31/05 $ 50,000 1.08% 0.62% 1.44% 35% Year ended 7/31/06 $ 53,395 1.08% 1.10% 1.45% 19% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 1,386 1.08%** 0.06%** 1.61%** 55% Year ended 7/31/04 $ 8,046 1.08% 0.48% 1.45% 16% Year ended 7/31/05 $ 9,034 1.08% 0.62% 1.44% 35% Year ended 7/31/06 $ 8,196 1.08% 1.11% 1.45% 19% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY AGGRESSIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 1,370 0.58% 1.48% 0.97% 19% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 184-185 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.14# 0.92# 1.06 Year ended 7/31/04 $ 10.93 0.21# 0.76# 0.97 Year ended 7/31/05 $ 11.57 0.27# 0.97# 1.24 Year ended 7/31/06 $ 12.52 0.33# 0.15# 0.48 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.12# 0.92# 1.04 Year ended 7/31/04 $ 10.93 0.19# 0.74# 0.93 Year ended 7/31/05 $ 11.56 0.24# 0.96# 1.20 Year ended 7/31/06 $ 12.50 0.30# 0.15# 0.45 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.89# 0.95 Year ended 7/31/04 $ 10.89 0.12# 0.73# 0.85 Year ended 7/31/05 $ 11.51 0.14# 0.97# 1.11 Year ended 7/31/06 $ 12.45 0.21# 0.14# 0.35 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.06# 0.90# 0.96 Year ended 7/31/04 $ 10.90 0.12# 0.73# 0.85 Year ended 7/31/05 $ 11.51 0.15# 0.96# 1.11 Year ended 7/31/06 $ 12.45 0.21# 0.14# 0.35 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 12.52 0.29# 0.11# 0.40 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.18# 0.60# 0.78 Year ended 7/31/04 $ 10.62 0.27# 0.51# 0.78 Year ended 7/31/05 $ 10.95 0.27# 0.73# 1.00 Year ended 7/31/06 $ 11.59 0.34# 0.04# 0.38 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.59# 0.74 Year ended 7/31/04 $ 10.60 0.22# 0.53# 0.75 Year ended 7/31/05 $ 10.93 0.25# 0.73# 0.98 Year ended 7/31/06 $ 11.58 0.32# 0.03# 0.35 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.10# 0.58# 0.68 Year ended 7/31/04 $ 10.58 0.14# 0.53# 0.67 Year ended 7/31/05 $ 10.90 0.17# 0.72# 0.89 Year ended 7/31/06 $ 11.54 0.24# 0.02# 0.26 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.09# 0.59# 0.68 Year ended 7/31/04 $ 10.59 0.14# 0.52# 0.66 Year ended 7/31/05 $ 10.90 0.17# 0.72# 0.89 Year ended 7/31/06 $ 11.54 0.24# 0.03# 0.27 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 11.59 0.25# 0.07# 0.32 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.13) -- (0.13) $ 10.93 10.66%* Year ended 7/31/04 (0.21) (0.12) (0.33) $ 11.57 8.84% Year ended 7/31/05 (0.26) (0.03) (0.29) $ 12.52 10.79% Year ended 7/31/06 (0.33) (0.24) (0.57) $ 12.43 3.90% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 (0.11) -- (0.11) $ 10.93 10.48%* Year ended 7/31/04 (0.18) (0.12) (0.30) $ 11.56 8.53% Year ended 7/31/05 (0.23) (0.03) (0.26) $ 12.50 10.43% Year ended 7/31/06 (0.30) (0.24) (0.54) $ 12.41 3.65% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 (0.06) -- (0.06) $ 10.89 9.58%* Year ended 7/31/04 (0.11) (0.12) (0.23) $ 11.51 7.80% Year ended 7/31/05 (0.14) (0.03) (0.17) $ 12.45 9.58% Year ended 7/31/06 (0.21) (0.24) (0.45) $ 12.35 2.82% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 (0.06) -- (0.06) $ 10.90 9.67%* Year ended 7/31/04 (0.12) (0.12) (0.24) $ 11.51 7.76% Year ended 7/31/05 (0.14) (0.03) (0.17) $ 12.45 9.64% Year ended 7/31/06 (0.20) (0.24) (0.44) $ 12.36 2.88% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) (0.29) (0.24) (0.53) $ 12.39 3.27% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.16) -- (0.16) $ 10.62 7.87%* Year ended 7/31/04 (0.25) (0.20) (0.45) $ 10.95 7.39% Year ended 7/31/05 (0.27) (0.09) (0.36) $ 11.59 9.24% Year ended 7/31/06 (0.34) (0.27) (0.61) $ 11.36 3.39% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 (0.14) -- (0.14) $ 10.60 7.51%* Year ended 7/31/04 (0.22) (0.20) (0.42) $ 10.93 7.15% Year ended 7/31/05 (0.24) (0.09) (0.33) $ 11.58 8.97% Year ended 7/31/06 (0.31) (0.27) (0.58) $ 11.35 3.14% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 (0.10) -- (0.10) $ 10.58 6.81%* Year ended 7/31/04 (0.15) (0.20) (0.35) $ 10.90 6.35% Year ended 7/31/05 (0.16) (0.09) (0.25) $ 11.54 8.10% Year ended 7/31/06 (0.23) (0.27) (0.50) $ 11.30 2.28% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 (0.09) -- (0.09) $ 10.59 6.81%* Year ended 7/31/04 (0.15) (0.20) (0.35) $ 10.90 6.29% Year ended 7/31/05 (0.16) (0.09) (0.25) $ 11.54 8.18% Year ended 7/31/06 (0.22) (0.27) (0.49) $ 11.32 2.43% ----------------------------------------------------------------------------------------------------------------------------------- LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) (0.31) (0.27) (0.58) $ 11.33 2.84% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 71,538 0.08%** 1.82%** 0.52%** 55% Year ended 7/31/04 $ 315,055 0.08% 1.76% 0.43% 14% Year ended 7/31/05 $ 340,163 0.08% 2.17% 0.42% 41% Year ended 7/31/06 $ 369,903 0.08% 2.70% 0.43% 30% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 28,991 0.33%** 1.52%** 0.84%** 55% Year ended 7/31/04 $ 98,293 0.33% 1.79% 0.68% 14% Year ended 7/31/05 $ 106,044 0.33% 1.92% 0.67% 41% Year ended 7/31/06 $ 100,588 0.33% 2.46% 0.68% 30% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 14,631 1.08%** 0.74%** 1.63%** 55% Year ended 7/31/04 $ 36,778 1.08% 1.05% 1.43% 14% Year ended 7/31/05 $ 44,111 1.08% 1.17% 1.42% 41% Year ended 7/31/06 $ 43,234 1.08% 1.70% 1.43% 30% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 1,335 1.08%** 0.70%** 1.66%** 55% Year ended 7/31/04 $ 7,442 1.08% 1.04% 1.43% 14% Year ended 7/31/05 $ 7,912 1.08% 1.16% 1.42% 41% Year ended 7/31/06 $ 6,495 1.08% 1.70% 1.43% 30% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 422 0.58% 2.13% 0.94% 30% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 40,412 0.08%** 2.23%** 0.60%** 72% Year ended 7/31/04 $ 38,097 0.08% 2.33% 0.49% 19% Year ended 7/31/05 $ 38,606 0.08% 2.44% 0.47% 38% Year ended 7/31/06 $ 42,683 0.08% 3.05% 0.50% 22% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 19,449 0.33%** 1.82%** 1.04%** 72% Year ended 7/31/04 $ 40,851 0.33% 2.09% 0.74% 19% Year ended 7/31/05 $ 41,446 0.33% 2.18% 0.72% 38% Year ended 7/31/06 $ 37,479 0.33% 2.80% 0.75% 22% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 9,083 1.08%** 1.09%** 1.80%** 72% Year ended 7/31/04 $ 21,122 1.08% 1.31% 1.49% 19% Year ended 7/31/05 $ 22,752 1.08% 1.44% 1.47% 38% Year ended 7/31/06 $ 20,488 1.08% 2.05% 1.50% 22% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 1,017 1.08%** 1.07%** 1.73%** 72% Year ended 7/31/04 $ 3,576 1.08% 1.26% 1.49% 19% Year ended 7/31/05 $ 4,029 1.08% 1.42% 1.47% 38% Year ended 7/31/06 $ 3,058 1.08% 2.05% 1.50% 22% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL MODERATELY CONSERVATIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 62 0.58% 2.76% 1.01% 22% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 186-187 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.23# 0.52# 0.75 Year ended 7/31/04 $ 10.54 0.31# 0.26# 0.57 Year ended 7/31/05 $ 10.66 0.31# 0.36# 0.67 Year ended 7/31/06 $ 10.92 0.40#@ (0.09)# 0.31 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.21# 0.51# 0.72 Year ended 7/31/04 $ 10.53 0.26# 0.28# 0.54 Year ended 7/31/05 $ 10.64 0.30# 0.34# 0.64 Year ended 7/31/06 $ 10.90 0.37#@ (0.09)# 0.28 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.16# 0.49# 0.65 Year ended 7/31/04 $ 10.50 0.19# 0.27# 0.46 Year ended 7/31/05 $ 10.61 0.22# 0.34# 0.56 Year ended 7/31/06 $ 10.87 0.29#@ (0.09)# 0.20 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 10.00 0.15# 0.50# 0.65 Year ended 7/31/04 $ 10.51 0.18# 0.28# 0.46 Year ended 7/31/05 $ 10.61 0.23# 0.34# 0.57 Year ended 7/31/06 $ 10.88 0.29#@ (0.11)# 0.18 ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 10.92 0.36#@ (0.12)# 0.24 ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND INSTITUTIONAL SHARES Year ended 12/31/01 $ 9.96 0.69 0.59 1.28 1/1/02 to 7/31/02(c) $ 10.57 0.32 0.08 0.40 Year ended 7/31/03 $ 10.63 0.58 0.25 0.83 Year ended 7/31/04 $ 10.91 0.51 0.25 0.76 Year ended 7/31/05 $ 11.15 0.51 0.39 0.90 Year ended 7/31/06 $ 11.54 0.52@ (0.23) 0.29 ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS A SHARES 4/1/04(d) to 7/31/04 $ 11.65 0.17 (0.54) (0.37) Year ended 7/31/05 $ 11.12 0.49 0.38 0.87 Year ended 7/31/06 $ 11.51 0.48@ (0.22) 0.26 ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS B SHARES 4/1/04(d) to 7/31/04 $ 11.65 0.15 (0.54) (0.39) Year ended 7/31/05 $ 11.12 0.40 0.39 0.79 Year ended 7/31/06 $ 11.51 0.40@ (0.23) 0.17 ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS C SHARES 10/29/01(d) to 12/31/01 $ 10.53 0.16 (0.10) 0.06 1/1/02 to 7/31/02(c) $ 10.50 0.27 0.07 0.34 Year ended 7/31/03 $ 10.55 0.47 0.24 0.71 Year ended 7/31/04 $ 10.82 0.39 0.25 0.64 Year ended 7/31/05 $ 11.05 0.39 0.39 0.78 Year ended 7/31/06 $ 11.43 0.40@ (0.23) 0.17 ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND ADVISOR SHARES Year ended 12/31/01 $ 9.95 0.63 0.60 1.23 1/1/02 to 7/31/02(c) $ 10.53 0.28 0.10 0.38 Year ended 7/31/03 $ 10.60 0.51 0.26 0.77 Year ended 7/31/04 $ 10.88 0.46 0.25 0.71 Year ended 7/31/05 $ 11.12 0.45 0.39 0.84 Year ended 7/31/06 $ 11.50 0.45@ (0.22) 0.23 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------------------- NET TOTAL TOTAL ASSET RETURN NET NET RETURN DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED OF AND END OF SALES INCOME GAINS CAPITAL DISTRIBUTIONS PERIOD CHARGE) ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 (0.21) -- -- (0.21) $10.54 7.58%* Year ended 7/31/04 (0.29) (0.16) -- (0.45) $10.66 5.44% Year ended 7/31/05 (0.32) (0.09) -- (0.41) $10.92 6.38% Year ended 7/31/06 (0.40) (0.11) -- (0.51) $10.72 2.88% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 (0.19) -- -- (0.19) $10.53 7.31%* Year ended 7/31/04 (0.27) (0.16) -- (0.43) $10.64 5.11% Year ended 7/31/05 (0.29) (0.09) -- (0.38) $10.90 6.13% Year ended 7/31/06 (0.37) (0.11) -- (0.48) $10.70 2.62% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 (0.15) -- -- (0.15) $10.50 6.54%* Year ended 7/31/04 (0.19) (0.16) -- (0.35) $10.61 4.37% Year ended 7/31/05 (0.21) (0.09) -- (0.30) $10.87 5.34% Year ended 7/31/06 (0.29) (0.11) -- (0.40) $10.67 1.83% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 (0.14) -- -- (0.14) $10.51 6.58%* Year ended 7/31/04 (0.20) (0.16) -- (0.36) $10.61 4.34% Year ended 7/31/05 (0.21) (0.09) -- (0.30) $10.88 5.30% Year ended 7/31/06 (0.28) (0.11) -- (0.39) $10.67 1.72% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) (0.36) (0.11) -- (0.47) $10.69 2.27% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND INSTITUTIONAL SHARES Year ended 12/31/01 (0.67) -- --^ (0.67) $10.57 13.12% 1/1/02 to 7/31/02(c) (0.34) -- -- (0.34) $10.63 3.82%* Year ended 7/31/03 (0.55) -- -- (0.55) $10.91 7.89% Year ended 7/31/04 (0.52) -- -- (0.52) $11.15 7.04% Year ended 7/31/05 (0.50) (0.01) -- (0.51) $11.54 8.21% Year ended 7/31/06 (0.52) (0.03) -- (0.55) $11.28 2.61% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS A SHARES 4/1/04(d) to 7/31/04 (0.16) -- -- (0.16) $11.12 (3.15%)* Year ended 7/31/05 (0.47) (0.01) -- (0.48) $11.51 7.96% Year ended 7/31/06 (0.49) (0.03) -- (0.52) $11.25 2.36% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS B SHARES 4/1/04(d) to 7/31/04 (0.14) -- -- (0.14) $11.12 (3.36%)* Year ended 7/31/05 (0.39) (0.01) -- (0.40) $11.51 7.16% Year ended 7/31/06 (0.40) (0.03) -- (0.43) $11.25 1.60% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS C SHARES 10/29/01(d) to 12/31/01 (0.09) -- -- (0.09) $10.50 0.62%* 1/1/02 to 7/31/02(c) (0.29) -- -- (0.29) $10.55 3.22%* Year ended 7/31/03 (0.44) -- -- (0.44) $10.82 6.82% Year ended 7/31/04 (0.41) -- -- (0.41) $11.05 6.07% Year ended 7/31/05 (0.39) (0.01) -- (0.40) $11.43 7.12% Year ended 7/31/06 (0.40) (0.03) -- (0.43) $11.17 1.62% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND ADVISOR SHARES Year ended 12/31/01 (0.65) -- --^ (0.65) $10.53 12.64% 1/1/02 to 7/31/02(c) (0.31) -- -- (0.31) $10.60 3.64%* Year ended 7/31/03 (0.49) -- -- (0.49) $10.88 7.36% Year ended 7/31/04 (0.47) -- -- (0.47) $11.12 6.55% Year ended 7/31/05 (0.45) (0.01) -- (0.46) $11.50 7.70% Year ended 7/31/06 (0.46) (0.03) -- (0.49) $11.24 2.11% ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM INSTITUTIONAL SHARES 8/1/02(d) to 7/31/03 $ 16,014 0.08%** 2.90%** 0.75%** 63% Year ended 7/31/04 $ 14,201 0.08% 2.79% 0.58% 27% Year ended 7/31/05 $ 22,236 0.08% 3.00% 0.54% 46% Year ended 7/31/06 $ 24,385 0.08% 3.72% 0.58% 15% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS A SHARES 8/1/02(d) to 7/31/03 $ 9,387 0.33%** 2.52%** 1.17%** 63% Year ended 7/31/04 $ 20,461 0.33% 2.59% 0.84% 27% Year ended 7/31/05 $ 20,014 0.33% 2.76% 0.79% 46% Year ended 7/31/06 $ 16,138 0.33% 3.45% 0.82% 15% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS B SHARES 8/1/02(d) to 7/31/03 $ 8,795 1.08%** 1.75%** 1.86%** 63% Year ended 7/31/04 $ 13,524 1.08% 1.80% 1.58% 27% Year ended 7/31/05 $ 12,688 1.08% 2.01% 1.54% 46% Year ended 7/31/06 $ 10,208 1.08% 2.69% 1.57% 15% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM CLASS C SHARES 8/1/02(d) to 7/31/03 $ 2,203 1.08%** 1.63%** 1.86%** 63% Year ended 7/31/04 $ 6,563 1.08% 1.81% 1.58% 27% Year ended 7/31/05 $ 5,304 1.08% 2.01% 1.54% 46% Year ended 7/31/06 $ 3,816 1.08% 2.68% 1.57% 15% ------------------------------------------------------------------------------------------------------------------------------------ LIFEMODEL CONSERVATIVE FUND SM ADVISOR SHARES Year ended 7/31/06 (h) $ 45 0.58% 3.36% 1.09% 15% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND INSTITUTIONAL SHARES Year ended 12/31/01 $ 3,142 1.26% 6.62% 1.28% 34% 1/1/02 to 7/31/02(c) $ 11,491 1.35%** 5.14%** 1.63%** 27% Year ended 7/31/03 $ 67,649 1.35% 5.25% 1.35% 38% Year ended 7/31/04 $ 90,995 1.33% 4.64% 1.33% 36% Year ended 7/31/05 $ 97,921 1.36% 4.47% 1.36% 17% Year ended 7/31/06 $ 107,130 1.31% 4.56% 1.34% 8% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS A SHARES 4/1/04(d) to 7/31/04 $ 954 1.63%** 5.02%** 1.63%** 36% Year ended 7/31/05 $ 4,423 1.62% 4.25% 1.62% 17% Year ended 7/31/06 $ 4,429 1.56% 4.30% 1.59% 8% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS B SHARES 4/1/04(d) to 7/31/04 $ 389 2.37%** 4.27%** 2.37%** 36% Year ended 7/31/05 $ 1,909 2.37% 3.49% 2.37% 17% Year ended 7/31/06 $ 1,588 2.31% 3.57% 2.34% 8% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND CLASS C SHARES 10/29/01(d) to 12/31/01 $ 1,755 2.39%** 8.97%** 2.55%** 34% 1/1/02 to 7/31/02(c) $ 8,148 2.37%** 3.97%** 2.66%** 27% Year ended 7/31/03 $ 37,810 2.32% 4.35% 2.35% 38% Year ended 7/31/04 $ 39,298 2.33% 3.62% 2.33% 36% Year ended 7/31/05 $ 29,176 2.35% 3.47% 2.35% 17% Year ended 7/31/06 $ 20,019 2.32% 3.53% 2.34% 8% ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIC INCOME FUND ADVISOR SHARES Year ended 12/31/01 $ 34,105 1.76% 6.12% 1.78% 34% 1/1/02 to 7/31/02(c) $ 31,240 1.85%** 4.49%** 2.07%** 27% Year ended 7/31/03 $ 36,345 1.85% 4.68% 1.88% 38% Year ended 7/31/04 $ 39,982 1.83% 4.12% 1.83% 36% Year ended 7/31/05 $ 32,531 1.85% 3.96% 1.85% 17% Year ended 7/31/06 $ 20,880 1.82% 4.03% 1.84% 8% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 188-189 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++ Year ended 7/31/02 $ 25.47 (0.21) (7.20) (7.41) Year ended 7/31/03 $ 18.06 (0.12) 0.23 0.11 Year ended 7/31/04 $ 18.17 (0.19) 1.12 0.93 Year ended 7/31/05 $ 19.10 (0.15)@ 2.76 2.61 Year ended 7/31/06 $ 21.71 0.28@ 0.83 1.11 ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND CLASS A SHARES ++ Year ended 7/31/02 $ 25.28 (0.29) (7.11) (7.40) Year ended 7/31/03 $ 17.88 (0.16) 0.22 0.06 Year ended 7/31/04 $ 17.94 (0.20) 1.08 0.88 Year ended 7/31/05 $ 18.82 (0.19)@ 2.71 2.52 Year ended 7/31/06 $ 21.34 0.23@ 0.85 1.08 ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND CLASS B SHARES ++ Year ended 7/31/02 $ 25.59 (0.34) (7.40) (7.74) Year ended 7/31/03 $ 17.85 (0.24) 0.16 (0.08) Year ended 7/31/04 $ 17.77 (0.31) 1.05 0.74 Year ended 7/31/05 $ 18.51 (0.33)@ 2.65 2.32 Year ended 7/31/06 $ 20.83 0.06@ 0.80 0.86 ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND CLASS C SHARES ++ Year ended 7/31/02 $ 24.75 (0.50) (6.88) (7.38) Year ended 7/31/03 $ 17.37 (0.30) 0.23 (0.07) Year ended 7/31/04 $ 17.30 (0.36) 1.07 0.71 Year ended 7/31/05 $ 18.01 (0.32)@ 2.58 2.26 Year ended 7/31/06 $ 20.27 0.07@ 0.78 0.85 ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND ADVISOR SHARES ++ Year ended 7/31/06 (h) $ 21.34 0.15@ 0.83 0.98 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++ Year ended 7/31/02 -- -- -- $ 18.06 (29.09%) Year ended 7/31/03 -- -- -- $ 18.17 0.61% Year ended 7/31/04 -- -- -- $ 19.10 5.12% Year ended 7/31/05 -- -- -- $ 21.71 13.66% Year ended 7/31/06 (0.26) -- (0.26) $ 22.56 5.14% ----------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH FUND CLASS A SHARES ++ Year ended 7/31/02 -- -- -- $ 17.88 (29.27%) Year ended 7/31/03 -- -- -- $ 17.94 0.34% Year ended 7/31/04 -- -- -- $ 18.82 4.91% Year ended 7/31/05 -- -- -- $ 21.34 13.39% Year ended 7/31/06 (0.24) -- (0.24) $ 22.18 5.05% ----------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH FUND CLASS B SHARES ++ Year ended 7/31/02 -- -- -- $ 17.85 (30.25%) Year ended 7/31/03 -- -- -- $ 17.77 (0.45%) Year ended 7/31/04 -- -- -- $ 18.51 4.16% Year ended 7/31/05 -- -- -- $ 20.83 12.53% Year ended 7/31/06 (0.16) -- (0.16) $ 21.53 4.13% ----------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH FUND CLASS C SHARES ++ Year ended 7/31/02 -- -- -- $ 17.37 (29.82%) Year ended 7/31/03 -- -- -- $ 17.30 (0.40%) Year ended 7/31/04 -- -- -- $ 18.01 4.10% Year ended 7/31/05 -- -- -- $ 20.27 12.55% Year ended 7/31/06 (0.15) -- (0.15) $ 20.97 4.22% ----------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH FUND ADVISOR SHARES ++ Year ended 7/31/06 (h) (0.21) -- (0.21) $ 22.11 4.59% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND INSTITUTIONAL SHARES ++ Year ended 7/31/02 $ 16,623 1.38% (0.79%) 1.38% 70% Year ended 7/31/03 $ 14,659 1.47% (0.67%) 1.63% 50% Year ended 7/31/04 $ 7,166 1.43% (0.68%) 1.74% 81% Year ended 7/31/05 $ 5,973 1.45% (0.73%) 1.99% 28% Year ended 7/31/06 $ 15,759 0.73% 1.25% 2.72% 147% ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND CLASS A SHARES ++ Year ended 7/31/02 $ 9,132 1.63% (1.03%) 1.63% 70% Year ended 7/31/03 $ 8,264 1.72% (0.92%) 1.89% 50% Year ended 7/31/04 $ 9,391 1.68% (0.98%) 2.00% 81% Year ended 7/31/05 $ 7,087 1.70% (0.98%) 2.24% 28% Year ended 7/31/06 $ 4,670 0.98% 1.08% 2.93% 147% ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND CLASS B SHARES ++ Year ended 7/31/02 $ 285 2.27% (1.89%) 2.27% 70% Year ended 7/31/03 $ 350 2.47% (1.68%) 2.63% 50% Year ended 7/31/04 $ 441 2.43% (1.74%) 2.74% 81% Year ended 7/31/05 $ 311 2.45% (1.73%) 2.97% 28% Year ended 7/31/06 $ 371 1.73% 0.27% 3.70% 147% ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND CLASS C SHARES ++ Year ended 7/31/02 $ 837 2.38% (1.78%) 2.38% 70% Year ended 7/31/03 $ 727 2.47% (1.67%) 2.64% 50% Year ended 7/31/04 $ 580 2.43% (1.71%) 2.75% 81% Year ended 7/31/05 $ 516 2.45% (1.73%) 3.00% 28% Year ended 7/31/06 $ 389 1.73% 0.32% 3.71% 147% ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND GROWTH FUND ADVISOR SHARES ++ Year ended 7/31/06 (h) $ 13 1.23% 0.67% 3.35% 147% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 190-191 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND INSTITUTIONAL SHARES Year ended 7/31/02 $10.37 (0.12) (4.70) (4.82) Year ended 7/31/03 $ 5.55 (0.09)@ 3.26 3.17 Year ended 7/31/04 $ 8.72 (0.11)@ (0.15) (0.26) Year ended 7/31/05 $ 8.46 (0.13)@ 1.63 1.50 Year ended 7/31/06 $ 9.96 (0.14)@ 0.24 0.10 ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND CLASS A SHARES Year ended 7/31/02 $10.35 (0.13) (4.70) (4.83) Year ended 7/31/03 $ 5.52 (0.11)@ 3.25 3.14 Year ended 7/31/04 $ 8.66 (0.13)@ (0.15) (0.28) Year ended 7/31/05 $ 8.38 (0.15)@ 1.60 1.45 Year ended 7/31/06 $ 9.83 (0.16)@ 0.24 0.08 ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND CLASS B SHARES Year ended 7/31/02 $10.28 (0.17) (4.67) (4.84) Year ended 7/31/03 $ 5.44 (0.15)@ 3.18 3.03 Year ended 7/31/04 $ 8.47 (0.20)@ (0.13) (0.33) Year ended 7/31/05 $ 8.14 (0.21)@ 1.55 1.34 Year ended 7/31/06 $ 9.48 (0.23)@ 0.24 0.01 ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND CLASS C SHARES Year ended 7/31/02 $10.24 (0.24) (4.57) (4.81) Year ended 7/31/03 $ 5.43 (0.16)@ 3.17 3.01 Year ended 7/31/04 $ 8.44 (0.21)@ (0.12) (0.33) Year ended 7/31/05 $ 8.11 (0.20)@ 1.54 1.34 Year ended 7/31/06 $ 9.45 (0.23)@ 0.24 0.01 ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 8.91 (0.08) (3.32) (3.40) Year ended 7/31/03 $ 5.51 (0.13)@ 3.23 3.10 Year ended 7/31/04 $ 8.61 (0.16)@ (0.14) (0.30) Year ended 7/31/05 $ 8.31 (0.17)@ 1.59 1.42 Year ended 7/31/06 $ 9.73 (0.19)@ 0.25 0.06 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY FUND INSTITUTIONAL SHARES Year ended 7/31/02 -- -- -- $ 5.55 (46.48%) Year ended 7/31/03 -- -- -- $ 8.72 57.12% Year ended 7/31/04 -- -- -- $ 8.46 (2.98%) Year ended 7/31/05 -- -- -- $ 9.96 17.73% Year ended 7/31/06 -- -- -- $ 10.06 1.00% ----------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY FUND CLASS A SHARES Year ended 7/31/02 -- -- -- $ 5.52 (46.67%) Year ended 7/31/03 -- -- -- $ 8.66 56.88% Year ended 7/31/04 -- -- -- $ 8.38 (3.23%) Year ended 7/31/05 -- -- -- $ 9.83 17.30% Year ended 7/31/06 -- -- -- $ 9.91 0.81% ----------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY FUND CLASS B SHARES Year ended 7/31/02 -- -- -- $ 5.44 (47.08%) Year ended 7/31/03 -- -- -- $ 8.47 55.70% Year ended 7/31/04 -- -- -- $ 8.14 (3.90%) Year ended 7/31/05 -- -- -- $ 9.48 16.46% Year ended 7/31/06 -- -- -- $ 9.49 0.11% ----------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY FUND CLASS C SHARES Year ended 7/31/02 -- -- -- $ 5.43 (46.97%) Year ended 7/31/03 -- -- -- $ 8.44 55.43% Year ended 7/31/04 -- -- -- $ 8.11 (3.79%) Year ended 7/31/05 -- -- -- $ 9.45 16.50% Year ended 7/31/06 -- -- -- $ 9.46 0.11% ----------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 -- -- -- $ 5.51 (34.48%)* Year ended 7/31/03 -- -- -- $ 8.61 56.26% Year ended 7/31/04 -- -- -- $ 8.31 (3.37%) Year ended 7/31/05 -- -- -- $ 9.73 16.95% Year ended 7/31/06 -- -- -- $ 9.79 0.62% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 21,183 1.51% (1.35%) 1.51% 97% Year ended 7/31/03 $ 29,573 1.55% (1.46%) 1.87% 258% Year ended 7/31/04 $ 37,573 1.20% (1.07%) 1.55% 191% Year ended 7/31/05 $ 38,941 1.63% (1.40%) 1.63% 367% Year ended 7/31/06 $ 47,523 1.51% (1.24%) 1.51% 506% ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND CLASS A SHARES Year ended 7/31/02 $ 3,256 1.75% (1.59%) 1.75% 97% Year ended 7/31/03 $ 5,218 1.81% (1.71%) 2.13% 258% Year ended 7/31/04 $ 7,105 1.45% (1.31%) 1.80% 191% Year ended 7/31/05 $ 5,699 1.87% (1.64%) 1.87% 367% Year ended 7/31/06 $ 4,048 1.76% (1.48%) 1.76% 506% ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND CLASS B SHARES Year ended 7/31/02 $ 679 2.51% (2.35%) 2.51% 97% Year ended 7/31/03 $ 1,164 2.55% (2.45%) 2.87% 258% Year ended 7/31/04 $ 1,436 2.20% (2.06%) 2.56% 191% Year ended 7/31/05 $ 1,160 2.62% (2.39%) 2.62% 367% Year ended 7/31/06 $ 935 2.51% (2.23%) 2.51% 506% ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND CLASS C SHARES Year ended 7/31/02 $ 96 2.45% (2.29%) 2.45% 97% Year ended 7/31/03 $ 1,081 2.47% (2.37%) 2.82% 258% Year ended 7/31/04 $ 1,757 2.20% (2.07%) 2.55% 191% Year ended 7/31/05 $ 590 2.60% (2.37%) 2.60% 367% Year ended 7/31/06 $ 787 2.51% (2.25%) 2.51% 506% ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 6 1.95%** (1.82%)** 1.95%** 97% Year ended 7/31/03 $ 55 1.90% (1.83%) 2.30% 258% Year ended 7/31/04 $ 247 1.71% (1.58%) 2.04% 191% Year ended 7/31/05 $ 239 2.12% (1.89%) 2.12% 367% Year ended 7/31/06 $ 1,919 2.01% (1.77%) 2.01% 506% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 192-193 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME/(LOSS) TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY INSTITUTIONAL SHARES Year ended 7/31/02 $ 9.04 0.02 (1.30) (1.28) Year ended 7/31/03 $ 7.65 0.06 0.12 0.18 Year ended 7/31/04 $ 7.79 0.06@ 1.61 1.67 Year ended 7/31/05 $ 9.32 0.13 1.54 1.67 Year ended 7/31/06 $10.79 0.15@ 2.37 2.52 ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY CLASS A SHARES Year ended 7/31/02 $ 9.02 (0.04) (1.24) (1.28) Year ended 7/31/03 $ 7.64 0.07 0.12 0.19 Year ended 7/31/04 $ 7.81 0.05@ 1.59 1.64 Year ended 7/31/05 $ 9.33 0.10 1.54 1.64 Year ended 7/31/06 $10.80 0.13@ 2.36 2.49 ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY CLASS B SHARES Year ended 7/31/02 $ 9.06 (0.05) (1.31) (1.36) Year ended 7/31/03 $ 7.60 --^ 0.11 0.11 Year ended 7/31/04 $ 7.71 (0.02)@ 1.59 1.57 Year ended 7/31/05 $ 9.23 0.02 1.52 1.54 Year ended 7/31/06 $10.66 0.04@ 2.32 2.36 ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY CLASS C SHARES Year ended 7/31/02 $ 8.82 (0.08) (1.24) (1.32) Year ended 7/31/03 $ 7.40 0.02 0.08 0.10 Year ended 7/31/04 $ 7.50 (0.02)@ 1.54 1.52 Year ended 7/31/05 $ 8.99 0.02 1.49 1.51 Year ended 7/31/06 $10.39 0.03@ 2.28 2.31 ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY ADVISOR SHARES 11/10/03(d) to 7/31/04 $ 8.67 0.02@ 0.65 0.67 Year ended 7/31/05 $ 9.31 0.08 1.54 1.62 Year ended 7/31/06 $10.78 0.08@ 2.37 2.45 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY INSTITUTIONAL SHARES Year ended 7/31/02 (0.11) -- (0.11) $ 7.65 (14.30%) Year ended 7/31/03 (0.04) -- (0.04) $ 7.79 2.47% Year ended 7/31/04 (0.14) -- (0.14) $ 9.32 21.56% Year ended 7/31/05 (0.20) -- (0.20) $ 10.79 17.99% Year ended 7/31/06 (0.20) (0.28) (0.48) $ 12.83 23.86% ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS A SHARES Year ended 7/31/02 (0.10) -- (0.10) $ 7.64 (14.23%) Year ended 7/31/03 (0.02) -- (0.02) $ 7.81 2.52% Year ended 7/31/04 (0.12) -- (0.12) $ 9.33 21.11% Year ended 7/31/05 (0.17) -- (0.17) $ 10.80 17.79% Year ended 7/31/06 (0.17) (0.28) (0.45) $ 12.84 23.53% ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS B SHARES Year ended 7/31/02 (0.10) -- (0.10) $ 7.60 (15.11%) Year ended 7/31/03 -- -- -- $ 7.71 1.45% Year ended 7/31/04 (0.05) -- (0.05) $ 9.23 20.43% Year ended 7/31/05 (0.11) -- (0.11) $ 10.66 16.76% Year ended 7/31/06 (0.10) (0.28) (0.38) $ 12.64 22.59% ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY CLASS C SHARES Year ended 7/31/02 (0.10) -- (0.10) $ 7.40 (15.07%) Year ended 7/31/03 -- -- -- $ 7.50 1.35% Year ended 7/31/04 (0.03) -- (0.03) $ 8.99 20.32% Year ended 7/31/05 (0.11) -- (0.11) $ 10.39 16.83% Year ended 7/31/06 (0.11) (0.28) (0.39) $ 12.31 22.61% ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY ADVISOR SHARES 11/10/03(d) to 7/31/04 (0.03) -- (0.03) $ 9.31 7.70%* Year ended 7/31/05 (0.15) -- (0.15) $ 10.78 17.43% Year ended 7/31/06 (0.12) (0.28) (0.40) $ 12.83 23.18% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME/(LOSS) AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY INSTITUTIONAL SHARES Year ended 7/31/02 $ 148,593 1.38% 0.17% 1.38% 23% Year ended 7/31/03 $ 159,160 1.42% 0.96% 1.45% 44% Year ended 7/31/04 $ 324,852 1.36% 0.61% 1.42% 50% Year ended 7/31/05 $ 282,476 1.35% 1.15% 1.39% 21% Year ended 7/31/06 $ 434,572 1.35% 1.24% 1.37% 23% ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY CLASS A SHARES Year ended 7/31/02 $ 4,105 1.62% 0.17% 1.62% 23% Year ended 7/31/03 $ 5,489 1.67% 0.88% 1.69% 44% Year ended 7/31/04 $ 22,999 1.61% 0.51% 1.67% 50% Year ended 7/31/05 $ 20,509 1.60% 0.88% 1.64% 21% Year ended 7/31/06 $ 27,725 1.60% 1.03% 1.62% 23% ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY CLASS B SHARES Year ended 7/31/02 $ 246 2.38% (0.79%) 2.38% 23% Year ended 7/31/03 $ 340 2.42% 0.01% 2.45% 44% Year ended 7/31/04 $ 793 2.36% (0.21%) 2.42% 50% Year ended 7/31/05 $ 1,280 2.35% 0.23% 2.39% 21% Year ended 7/31/06 $ 2,060 2.35% 0.32% 2.37% 23% ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY CLASS C SHARES Year ended 7/31/02 $ 127 2.38% (0.94%) 2.38% 23% Year ended 7/31/03 $ 304 2.39% 0.64% 2.44% 44% Year ended 7/31/04 $ 555 2.36% (0.22%) 2.42% 50% Year ended 7/31/05 $ 962 2.35% 0.26% 2.39% 21% Year ended 7/31/06 $ 1,139 2.35% 0.29% 2.37% 23% ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY ADVISOR SHARES 11/10/03(d) to 7/31/04 $ 12,360 1.85%** 0.31%** 1.92%** 50% Year ended 7/31/05 $ 12,315 1.85% 0.64% 1.89% 21% Year ended 7/31/06 $ 9,631 1.85% 0.68% 1.88% 23% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 194-195 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND INSTITUTIONAL SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.44 (0.28) 0.16 ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND CLASS A SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.41 (0.27) 0.14 ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND CLASS B SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.33 (0.24) 0.09 ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND CLASS C SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.35 (0.25) 0.10 ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND ADVISOR SHARES 11/29/05 (d) to 7/31/06 $ 10.00 0.39 (0.26) 0.13 ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 9.97 0.50 (0.01) 0.49 Year ended 7/31/03 $ 9.93 0.39 0.09 0.48 Year ended 7/31/04 $ 9.96 0.28 0.14 0.42 Year ended 7/31/05 $ 10.02 0.34 0.10 0.44 Year ended 7/31/06 $ 10.07 0.42 (0.30) 0.12 ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND CLASS A SHARES Year ended 7/31/02 $ 9.95 0.51 (0.03) 0.48 Year ended 7/31/03 $ 9.92 0.37 0.08 0.45 Year ended 7/31/04 $ 9.95 0.25 0.16 0.41 Year ended 7/31/05 $ 10.02 0.30 0.11 0.41 Year ended 7/31/06 $ 10.07 0.39 (0.30) 0.09 ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 10.13 0.29 (0.17) 0.12 Year ended 7/31/03 $ 9.93 0.28 0.08 0.36 Year ended 7/31/04 $ 9.95 0.15 0.18 0.33 Year ended 7/31/05 $ 10.02 0.23 0.10 0.33 Year ended 7/31/06 $ 10.07 0.32 (0.30) 0.02 ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 10.13 0.27 (0.16) 0.11 Year ended 7/31/03 $ 9.93 0.29 0.08 0.37 Year ended 7/31/04 $ 9.96 0.17 0.15 0.32 Year ended 7/31/05 $ 10.02 0.23 0.10 0.33 Year ended 7/31/06 $ 10.07 0.31 (0.28) 0.03 ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 10.13 0.35 (0.19) 0.16 Year ended 7/31/03 $ 9.93 0.34 0.08 0.42 Year ended 7/31/04 $ 9.96 0.23 0.14 0.37 Year ended 7/31/05 $ 10.02 0.28 0.11 0.39 Year ended 7/31/06 $ 10.07 0.36 (0.30) 0.06 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND FUND INSTITUTIONAL SHARES 11/29/05 (d) to 7/31/06 (0.42) -- (0.42) $ 9.74 1.59%* ----------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND FUND CLASS A SHARES 11/29/05 (d) to 7/31/06 (0.40) -- (0.40) $ 9.74 1.44%* ----------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND FUND CLASS B SHARES 11/29/05 (d) to 7/31/06 (0.36) -- (0.36) $ 9.73 0.91%* ----------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND FUND CLASS C SHARES 11/29/05 (d) to 7/31/06 (0.36) -- (0.36) $ 9.74 0.94%* ----------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND FUND ADVISOR SHARES 11/29/05 (d) to 7/31/06 (0.39) -- (0.39) $ 9.74 1.26%* ----------------------------------------------------------------------------------------------------------------------------------- BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.53) -- (0.53) $ 9.93 5.06% Year ended 7/31/03 (0.45) -- (0.45) $ 9.96 4.79% Year ended 7/31/04 (0.36) -- (0.36) $ 10.02 4.26% Year ended 7/31/05 (0.38) (0.01) (0.39) $ 10.07 4.43% Year ended 7/31/06 (0.45) (0.06) (0.51) $ 9.68 1.21% ----------------------------------------------------------------------------------------------------------------------------------- BOND FUND CLASS A SHARES Year ended 7/31/02 (0.51) -- (0.51) $ 9.92 4.91% Year ended 7/31/03 (0.42) -- (0.42) $ 9.95 4.62% Year ended 7/31/04 (0.34) -- (0.34) $ 10.02 4.00% Year ended 7/31/05 (0.35) (0.01) (0.36) $ 10.07 4.17% Year ended 7/31/06 (0.42) (0.06) (0.48) $ 9.68 0.97% ----------------------------------------------------------------------------------------------------------------------------------- BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 (0.32) -- (0.32) $ 9.93 1.22%* Year ended 7/31/03 (0.34) -- (0.34) $ 9.95 3.74% Year ended 7/31/04 (0.26) -- (0.26) $ 10.02 3.19% Year ended 7/31/05 (0.27) (0.01) (0.28) $ 10.07 3.38% Year ended 7/31/06 (0.35) (0.06) (0.41) $ 9.68 0.20% ----------------------------------------------------------------------------------------------------------------------------------- BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 (0.31) -- (0.31) $ 9.93 1.20%* Year ended 7/31/03 (0.34) -- (0.34) $ 9.96 3.75% Year ended 7/31/04 (0.26) -- (0.26) $ 10.02 3.20% Year ended 7/31/05 (0.27) (0.01) (0.28) $ 10.07 3.37% Year ended 7/31/06 (0.35) (0.06) (0.41) $ 9.69 0.30% ----------------------------------------------------------------------------------------------------------------------------------- BOND FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 (0.36) -- (0.36) $ 9.93 1.69%* Year ended 7/31/03 (0.39) -- (0.39) $ 9.96 4.25% Year ended 7/31/04 (0.31) -- (0.31) $ 10.02 3.73% Year ended 7/31/05 (0.33) (0.01) (0.34) $ 10.07 3.90% Year ended 7/31/06 (0.39) (0.06) (0.45) $ 9.68 0.69% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND INSTITUTIONAL SHARES 11/29/05 (d) to 7/31/06 $ 66,033 0.74%** 6.77%** 1.15%** 41% ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND CLASS A SHARES 11/29/05 (d) to 7/31/06 $ 227 0.99%** 6.74%** 2.98%** 41% ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND CLASS B SHARES 11/29/05 (d) to 7/31/06 $ 96 1.74%** 5.98%** 7.16%** 41% ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND CLASS C SHARES 11/29/05 (d) to 7/31/06 $ 55 1.74%** 5.93%** 8.04%** 41% ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD BOND FUND ADVISOR SHARES 11/29/05 (d) to 7/31/06 $ 10 1.24%** 5.98%** 24.09%** 41% ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 403,677 0.81% 4.74% 0.90% 229% Year ended 7/31/03 $ 303,450 0.80% 3.86% 0.89% 332% Year ended 7/31/04 $ 277,706 0.79% 2.75% 0.90% 389% Year ended 7/31/05 $ 292,043 0.78% 3.28% 0.91% 385% Year ended 7/31/06 $ 252,145 0.74% 4.23% 0.90% 352% ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND CLASS A SHARES Year ended 7/31/02 $ 19,949 1.06% 4.47% 1.16% 229% Year ended 7/31/03 $ 20,572 1.05% 3.57% 1.14% 332% Year ended 7/31/04 $ 22,559 1.04% 2.51% 1.15% 389% Year ended 7/31/05 $ 15,876 1.03% 3.01% 1.16% 385% Year ended 7/31/06 $ 11,657 0.99% 3.97% 1.15% 352% ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 6,857 1.81%** 3.70%** 1.93%** 229% Year ended 7/31/03 $ 7,418 1.80% 2.81% 1.89% 332% Year ended 7/31/04 $ 4,512 1.79% 1.76% 1.90% 389% Year ended 7/31/05 $ 3,907 1.78% 2.27% 1.91% 385% Year ended 7/31/06 $ 2,655 1.74% 3.20% 1.91% 352% ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 1,194 1.81%** 3.68%** 1.92%** 229% Year ended 7/31/03 $ 1,246 1.80% 2.79% 1.89% 332% Year ended 7/31/04 $ 768 1.79% 1.76% 1.90% 389% Year ended 7/31/05 $ 649 1.78% 2.26% 1.91% 385% Year ended 7/31/06 $ 315 1.74% 3.16% 1.91% 352% ------------------------------------------------------------------------------------------------------------------------------------ BOND FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 723 1.31%** 4.21%** 1.46%** 229% Year ended 7/31/03 $ 737 1.30% 3.34% 1.39% 332% Year ended 7/31/04 $ 655 1.29% 2.25% 1.40% 389% Year ended 7/31/05 $ 622 1.28% 2.77% 1.41% 385% Year ended 7/31/06 $ 260 1.24% 3.65% 1.40% 352% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 196-197 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 9.90 0.47 0.11 0.58 Year ended 7/31/03 $ 9.98 0.38 0.10 0.48 Year ended 7/31/04 $ 10.04 0.31 (0.04) 0.27 Year ended 7/31/05 $ 9.93 0.37 (0.08) 0.29 Year ended 7/31/06 $ 9.80 0.43@ (0.27) 0.16 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND CLASS A SHARES Year ended 7/31/02 $ 9.93 0.50 0.06 0.56 Year ended 7/31/03 $ 10.01 0.36 0.09 0.45 Year ended 7/31/04 $ 10.06 0.29 (0.04) 0.25 Year ended 7/31/05 $ 9.95 0.34 (0.08) 0.26 Year ended 7/31/06 $ 9.82 0.40@ (0.26) 0.14 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 10.08 0.29 (0.10) 0.19 Year ended 7/31/03 $ 9.96 0.29 0.09 0.38 Year ended 7/31/04 $ 10.01 0.24 (0.03) 0.21 Year ended 7/31/05 $ 9.90 0.34 (0.08) 0.26 Year ended 7/31/06 $ 9.77 0.40@ (0.26) 0.14 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 10.08 0.27 (0.07) 0.20 Year ended 7/31/03 $ 9.98 0.30 0.08 0.38 Year ended 7/31/04 $ 10.03 0.20 (0.03) 0.17 Year ended 7/31/05 $ 9.92 0.26 (0.07) 0.19 Year ended 7/31/06 $ 9.79 0.33@ (0.26) 0.07 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 9.80 0.39@ (0.28) 0.11 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.50) -- (0.50) $ 9.98 6.15% Year ended 7/31/03 (0.42) -- (0.42) $ 10.04 4.77% Year ended 7/31/04 (0.38) -- (0.38) $ 9.93 2.71% Year ended 7/31/05 (0.42) -- (0.42) $ 9.80 2.85% Year ended 7/31/06 (0.45) -- (0.45) $ 9.51 1.65% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND FUND CLASS A SHARES Year ended 7/31/02 (0.48) -- (0.48) $ 10.01 5.78% Year ended 7/31/03 (0.40) -- (0.40) $ 10.06 4.52% Year ended 7/31/04 (0.36) -- (0.36) $ 9.95 2.45% Year ended 7/31/05 (0.39) -- (0.39) $ 9.82 2.67% Year ended 7/31/06 (0.42) -- (0.42) $ 9.54 1.48% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 (0.31) -- (0.31) $ 9.96 1.92%* Year ended 7/31/03 (0.33) -- (0.33) $ 10.01 3.78% Year ended 7/31/04 (0.32) -- (0.32) $ 9.90 2.06% Year ended 7/31/05 (0.39) -- (0.39) $ 9.77 2.58% Year ended 7/31/06 (0.42) -- (0.42) $ 9.49 1.49% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 (0.30) -- (0.30) $ 9.98 2.02%* Year ended 7/31/03 (0.33) -- (0.33) $ 10.03 3.78% Year ended 7/31/04 (0.28) -- (0.28) $ 9.92 1.72% Year ended 7/31/05 (0.32) -- (0.32) $ 9.79 1.91% Year ended 7/31/06 (0.35) -- (0.35) $ 9.51 0.72% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.40) -- (0.40) $ 9.51 1.17% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 799,642 0.77% 4.53% 0.82% 229% Year ended 7/31/03 $ 772,536 0.76% 3.72% 0.81% 252% Year ended 7/31/04 $ 676,344 0.76% 3.13% 0.81% 189% Year ended 7/31/05 $ 544,101 0.76% 3.69% 0.82% 104% Year ended 7/31/06 $ 440,962 0.72% 4.42% 0.83% 154% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND CLASS A SHARES Year ended 7/31/02 $ 31,977 1.02% 4.25% 1.07% 229% Year ended 7/31/03 $ 36,471 1.01% 3.45% 1.06% 252% Year ended 7/31/04 $ 37,500 1.01% 2.88% 1.07% 189% Year ended 7/31/05 $ 29,798 1.01% 3.43% 1.07% 104% Year ended 7/31/06 $ 23,075 0.97% 4.17% 1.08% 154% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 2,580 1.77%** 3.45%** 1.84%** 229% Year ended 7/31/03 $ 5,564 1.76% 2.64% 1.81% 252% Year ended 7/31/04 $ 3,982 1.46% 2.42% 1.81% 189% Year ended 7/31/05 $ 3,316 1.01% 3.44% 1.82% 104% Year ended 7/31/06 $ 2,232 0.97% 4.16% 1.83% 154% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 797 1.77%** 3.48%** 1.84%** 229% Year ended 7/31/03 $ 2,319 1.76% 2.59% 1.81% 252% Year ended 7/31/04 $ 1,620 1.76% 2.12% 1.81% 189% Year ended 7/31/05 $ 1,096 1.76% 2.67% 1.82% 104% Year ended 7/31/06 $ 741 1.72% 3.41% 1.83% 154% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 13 1.20% 4.10% 1.29% 154% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 198-199 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 9.83 0.41 0.07 0.48 Year ended 7/31/03 $ 9.82 0.28 0.03 0.31 Year ended 7/31/04 $ 9.75 0.19@ (0.06) 0.13 Year ended 7/31/05 $ 9.57 0.20 (0.08) 0.12 Year ended 7/31/06 $ 9.37 0.31 (0.06) 0.25 ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND CLASS A SHARES Year ended 7/31/02 $ 9.82 0.43 0.03 0.46 Year ended 7/31/03 $ 9.81 0.28 0.02 0.30 Year ended 7/31/04 $ 9.74 0.18@ (0.07) 0.11 Year ended 7/31/05 $ 9.56 0.19 (0.09) 0.10 Year ended 7/31/06 $ 9.36 0.28 (0.04) 0.24 ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND CLASS C SHARES 8/1/03(d) to 7/31/04 $ 9.75 0.09@ (0.06) 0.03 Year ended 7/31/05 $ 9.56 0.10 (0.08) 0.02 Year ended 7/31/06 $ 9.36 0.21 (0.04) 0.17 ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 9.37 0.27 (0.07) 0.20 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02(f) $ 10.06 0.41 0.33 0.74 Year ended 7/31/03 $ 10.42 0.30 0.03 0.33 Year ended 7/31/04 $ 10.29 0.25 --^ 0.25 Year ended 7/31/05 $ 10.12 0.30 (0.06) 0.24 Year ended 7/31/06 $ 10.08 0.38 (0.19) 0.19 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND CLASS A SHARES Year ended 7/31/02(f) $ 10.06 0.38 0.35 0.73 Year ended 7/31/03 $ 10.43 0.27 0.03 0.30 Year ended 7/31/04 $ 10.29 0.20 0.03 0.23 Year ended 7/31/05 $ 10.13 0.28 (0.06) 0.22 Year ended 7/31/06 $ 10.09 0.36 (0.19) 0.17 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND CLASS C SHARES Year ended 7/31/02(f) $ 10.01 0.30 0.34 0.64 Year ended 7/31/03 $ 10.36 0.19 0.03 0.22 Year ended 7/31/04 $ 10.22 0.15 (0.01) 0.14 Year ended 7/31/05 $ 10.05 0.20 (0.06) 0.14 Year ended 7/31/06 $ 10.01 0.29 (0.20) 0.09 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 10.09 0.34 (0.19) 0.15 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.49) -- (0.49) $ 9.82 4.96% Year ended 7/31/03 (0.38) -- (0.38) $ 9.75 3.23% Year ended 7/31/04 (0.31) -- (0.31) $ 9.57 1.31% Year ended 7/31/05 (0.32) -- (0.32) $ 9.37 1.16% Year ended 7/31/06 (0.37) -- (0.37) $ 9.25 2.75% ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND FUND CLASS A SHARES Year ended 7/31/02 (0.47) -- (0.47) $ 9.81 4.83% Year ended 7/31/03 (0.37) -- (0.37) $ 9.74 3.07% Year ended 7/31/04 (0.29) -- (0.29) $ 9.56 1.12% Year ended 7/31/05 (0.30) -- (0.30) $ 9.36 1.00% Year ended 7/31/06 (0.35) -- (0.35) $ 9.25 2.60% ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND FUND CLASS C SHARES 8/1/03(d) to 7/31/04 (0.22) -- (0.22) $ 9.56 0.39%* Year ended 7/31/05 (0.22) -- (0.22) $ 9.36 0.23% Year ended 7/31/06 (0.28) -- (0.28) $ 9.25 1.81% ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.33) -- (0.33) $ 9.24 2.18% ----------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02(f) (0.38) -- (0.38) $ 10.42 7.55% Year ended 7/31/03 (0.30) (0.16) (0.46) $ 10.29 3.19% Year ended 7/31/04 (0.26) (0.16) (0.42) $ 10.12 2.42% Year ended 7/31/05 (0.28) -- (0.28) $ 10.08 2.39% Year ended 7/31/06 (0.35) (0.03) (0.38) $ 9.89 1.91% ----------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND CLASS A SHARES Year ended 7/31/02(f) (0.36) -- (0.36) $ 10.43 7.42% Year ended 7/31/03 (0.28) (0.16) (0.44) $ 10.29 2.83% Year ended 7/31/04 (0.23) (0.16) (0.39) $ 10.13 2.26% Year ended 7/31/05 (0.26) -- (0.26) $ 10.09 2.13% Year ended 7/31/06 (0.33) (0.03) (0.36) $ 9.90 1.65% ----------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND CLASS C SHARES Year ended 7/31/02(f) (0.29) -- (0.29) $ 10.36 6.53% Year ended 7/31/03 (0.20) (0.16) (0.36) $ 10.22 2.12% Year ended 7/31/04 (0.15) (0.16) (0.31) $ 10.05 1.41% Year ended 7/31/05 (0.18) -- (0.18) $ 10.01 1.39% Year ended 7/31/06 (0.25) (0.03) (0.28) $ 9.82 0.86% ----------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.31) (0.03) (0.34) $ 9.90 1.44% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 304,882 0.74% 4.02% 0.76% 111% Year ended 7/31/03 $ 490,229 0.74% 2.59% 0.76% 72% Year ended 7/31/04 $ 495,271 0.74% 1.96% 0.77% 90% Year ended 7/31/05 $ 333,909 0.73% 2.35% 0.77% 68% Year ended 7/31/06 $ 258,423 0.67% 3.33% 0.78% 53% ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND CLASS A SHARES Year ended 7/31/02 $ 19,019 0.90% 3.71% 1.01% 111% Year ended 7/31/03 $ 33,975 0.89% 2.39% 1.01% 72% Year ended 7/31/04 $ 28,262 0.89% 1.81% 1.02% 90% Year ended 7/31/05 $ 17,117 0.98% 2.10% 1.02% 68% Year ended 7/31/06 $ 12,362 0.92% 3.07% 1.03% 53% ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND CLASS C SHARES 8/1/03(d) to 7/31/04 $ 526 1.74%** 0.97%** 1.77%** 90% Year ended 7/31/05 $ 362 1.73% 1.34% 1.77% 68% Year ended 7/31/06 $ 205 1.67% 2.31% 1.79% 53% ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 3 1.16% 2.85% 1.28% 53% ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02(f) $ 50,809 0.87% 4.02% 1.02% 180% Year ended 7/31/03 $ 50,649 0.81% 2.88% 0.92% 304% Year ended 7/31/04 $ 43,820 0.76% 2.35% 0.91% 180% Year ended 7/31/05 $ 33,246 0.82% 2.91% 0.97% 159% Year ended 7/31/06 $ 29,005 0.73% 3.88% 0.98% 103% ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND CLASS A SHARES Year ended 7/31/02(f) $ 8,436 1.13% 3.70% 1.28% 180% Year ended 7/31/03 $ 11,413 1.06% 2.61% 1.17% 304% Year ended 7/31/04 $ 31,146 1.01% 2.10% 1.16% 180% Year ended 7/31/05 $ 27,214 1.07% 2.67% 1.22% 159% Year ended 7/31/06 $ 23,702 0.98% 3.63% 1.23% 103% ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND CLASS C SHARES Year ended 7/31/02(f) $ 2,623 1.89% 2.86% 2.03% 180% Year ended 7/31/03 $ 10,006 1.80% 1.77% 1.91% 304% Year ended 7/31/04 $ 4,255 1.77% 1.34% 1.91% 180% Year ended 7/31/05 $ 2,844 1.82% 1.91% 1.97% 159% Year ended 7/31/06 $ 1,767 1.73% 2.87% 1.98% 103% ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 3 1.19% 3.43% 1.39% 103% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 200-201 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 10.75 0.43 0.24 0.67 Year ended 7/31/03 $ 10.74 0.43@ (0.09) 0.34 Year ended 7/31/04 $ 10.49 0.43@ 0.08 0.51 Year ended 7/31/05 $ 10.40 0.40 0.06 0.46 Year ended 7/31/06 $ 10.07 0.37 (0.23) 0.14 ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 $ 10.78 0.40 0.25 0.65 Year ended 7/31/03 $ 10.77 0.40@ (0.07) 0.33 Year ended 7/31/04 $ 10.54 0.40@ 0.06 0.46 Year ended 7/31/05 $ 10.43 0.38 0.06 0.44 Year ended 7/31/06 $ 10.11 0.36 (0.23) 0.13 ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 10.87 0.25 0.09 0.34 Year ended 7/31/03 $ 10.71 0.32@ (0.07) 0.25 Year ended 7/31/04 $ 10.47 0.32@ 0.07 0.39 Year ended 7/31/05 $ 10.37 0.29 0.06 0.35 Year ended 7/31/06 $ 10.04 0.28 (0.24) 0.04 ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 10.87 0.25 0.10 0.35 Year ended 7/31/03 $ 10.72 0.32@ (0.07) 0.25 Year ended 7/31/04 $ 10.48 0.32@ 0.07 0.39 Year ended 7/31/05 $ 10.38 0.31 0.04 0.35 Year ended 7/31/06 $ 10.05 0.28 (0.23) 0.05 ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 10.87 0.28 0.13 0.41 Year ended 7/31/03 $ 10.73 0.38@ (0.08) 0.30 Year ended 7/31/04 $ 10.49 0.38@ 0.06 0.44 Year ended 7/31/05 $ 10.39 0.34 0.06 0.40 Year ended 7/31/06 $ 10.06 0.33 (0.23) 0.10 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 10.78 0.38 0.25 0.63 Year ended 7/31/03 $ 10.79 0.37@ (0.09) 0.28 Year ended 7/31/04 $ 10.64 0.37 (0.03) 0.34 Year ended 7/31/05 $ 10.53 0.37 (0.07) 0.30 Year ended 7/31/06 $ 10.33 0.36@ (0.21) 0.15 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 $ 10.78 0.36 0.24 0.60 Year ended 7/31/03 $ 10.79 0.34@ (0.07) 0.27 Year ended 7/31/04 $ 10.65 0.34 (0.02) 0.32 Year ended 7/31/05 $ 10.54 0.33 (0.07) 0.26 Year ended 7/31/06 $ 10.33 0.33@ (0.20) 0.13 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 10.67 0.21 0.11 0.32 Year ended 7/31/03 $ 10.78 0.26@ (0.08) 0.18 Year ended 7/31/04 $ 10.63 0.30 (0.03) 0.27 Year ended 7/31/05 $ 10.51 0.34 (0.07) 0.27 Year ended 7/31/06 $ 10.31 0.33@ (0.20) 0.13 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 10.67 0.19 0.13 0.32 Year ended 7/31/03 $ 10.78 0.26@ (0.08) 0.18 Year ended 7/31/04 $ 10.63 0.28 (0.04) 0.24 Year ended 7/31/05 $ 10.53 0.24 (0.05) 0.19 Year ended 7/31/06 $ 10.33 0.26@ (0.21) 0.05 ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 10.33 0.32@ (0.21) 0.11 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.43) (0.25) (0.68) $ 10.74 6.57% Year ended 7/31/03 (0.43) (0.16) (0.59) $ 10.49 3.18% Year ended 7/31/04 (0.43) (0.17) (0.60) $ 10.40 4.84% Year ended 7/31/05 (0.40) (0.39) (0.79) $ 10.07 4.53% Year ended 7/31/06 (0.37) (0.44) (0.81) $ 9.40 1.49% ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 (0.41) (0.25) (0.66) $ 10.77 6.31% Year ended 7/31/03 (0.40) (0.16) (0.56) $ 10.54 3.05% Year ended 7/31/04 (0.40) (0.17) (0.57) $ 10.43 4.35% Year ended 7/31/05 (0.37) (0.39) (0.76) $ 10.11 4.35% Year ended 7/31/06 (0.35) (0.44) (0.79) $ 9.45 1.32% ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 (0.25) (0.25) (0.50) $ 10.71 3.36%* Year ended 7/31/03 (0.33) (0.16) (0.49) $ 10.47 2.26% Year ended 7/31/04 (0.32) (0.17) (0.49) $ 10.37 3.71% Year ended 7/31/05 (0.29) (0.39) (0.68) $ 10.04 3.50% Year ended 7/31/06 (0.27) (0.44) (0.71) $ 9.37 0.47% ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 (0.25) (0.25) (0.50) $ 10.72 3.42%* Year ended 7/31/03 (0.33) (0.16) (0.49) $ 10.48 2.31% Year ended 7/31/04 (0.32) (0.17) (0.49) $ 10.38 3.71% Year ended 7/31/05 (0.29) (0.39) (0.68) $ 10.05 3.45% Year ended 7/31/06 (0.27) (0.44) (0.71) $ 9.39 0.56% ----------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 (0.30) (0.25) (0.55) $ 10.73 3.99%* Year ended 7/31/03 (0.38) (0.16) (0.54) $ 10.49 2.76% Year ended 7/31/04 (0.37) (0.17) (0.54) $ 10.39 4.22% Year ended 7/31/05 (0.34) (0.39) (0.73) $ 10.06 4.01% Year ended 7/31/06 (0.32) (0.44) (0.76) $ 9.40 1.08% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.38) (0.24) (0.62) $ 10.79 6.00% Year ended 7/31/03 (0.36) (0.07) (0.43) $ 10.64 2.64% Year ended 7/31/04 (0.36) (0.09) (0.45) $ 10.53 3.27% Year ended 7/31/05 (0.42) (0.08) (0.50) $ 10.33 2.83% Year ended 7/31/06 (0.36) (0.13) (0.49) $ 9.99 1.43% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 (0.35) (0.24) (0.59) $ 10.79 5.74% Year ended 7/31/03 (0.34) (0.07) (0.41) $ 10.65 2.48% Year ended 7/31/04 (0.34) (0.09) (0.43) $ 10.54 3.03% Year ended 7/31/05 (0.39) (0.08) (0.47) $ 10.33 2.44% Year ended 7/31/06 (0.33) (0.13) (0.46) $ 10.00 1.27% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 (0.21) -- (0.21) $ 10.78 3.02%* Year ended 7/31/03 (0.26) (0.07) (0.33) $ 10.63 1.67% Year ended 7/31/04 (0.30) (0.09) (0.39) $ 10.51 2.54% Year ended 7/31/05 (0.39) (0.08) (0.47) $ 10.31 2.54% Year ended 7/31/06 (0.33) (0.13) (0.46) $ 9.98 1.28% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 (0.21) -- (0.21) $ 10.78 3.03%* Year ended 7/31/03 (0.26) (0.07) (0.33) $ 10.63 1.64% Year ended 7/31/04 (0.25) (0.09) (0.34) $ 10.53 2.29% Year ended 7/31/05 (0.31) (0.08) (0.39) $ 10.33 1.76% Year ended 7/31/06 (0.26) (0.13) (0.39) $ 9.99 0.41% ----------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.31) (0.13) (0.44) $ 10.00 1.09% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 104,209 0.79% 4.06% 0.89% 97% Year ended 7/31/03 $ 74,347 0.79% 3.98% 0.93% 21% Year ended 7/31/04 $ 57,638 0.79% 4.05% 0.98% 35% Year ended 7/31/05 $ 49,802 0.78% 3.86% 1.04% 83% Year ended 7/31/06 $ 39,514 0.65% 3.87% 1.06% 87% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 $ 1,498 1.04% 3.83% 1.14% 97% Year ended 7/31/03 $ 1,906 1.04% 3.71% 1.18% 21% Year ended 7/31/04 $ 2,462 1.04% 3.81% 1.24% 35% Year ended 7/31/05 $ 1,637 1.03% 3.63% 1.29% 83% Year ended 7/31/06 $ 1,378 0.90% 3.62% 1.31% 87% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 511 1.80%** 3.08%** 1.96%** 97% Year ended 7/31/03 $ 1,205 1.79% 2.97% 1.92% 21% Year ended 7/31/04 $ 1,528 1.79% 3.06% 1.99% 35% Year ended 7/31/05 $ 1,479 1.78% 2.85% 2.04% 83% Year ended 7/31/06 $ 1,016 1.66% 2.86% 2.06% 87% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 210 1.80%** 3.10%** 1.94%** 97% Year ended 7/31/03 $ 548 1.79% 2.98% 1.93% 21% Year ended 7/31/04 $ 363 1.79% 3.05% 1.98% 35% Year ended 7/31/05 $ 179 1.78% 2.91% 2.03% 83% Year ended 7/31/06 $ 87 1.66% 2.86% 2.06% 87% ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BOND FUND ADVISOR SHARES 10/29/01(d) to 7/31/02 $ 174 1.30%** 3.57%** 1.50%** 97% Year ended 7/31/03 $ 382 1.29% 3.47% 1.43% 21% Year ended 7/31/04 $ 433 1.29% 3.56% 1.49% 35% Year ended 7/31/05 $ 378 1.28% 3.36% 1.54% 83% Year ended 7/31/06 $ 174 1.16% 3.36% 1.55% 87% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 346,386 0.73% 3.56% 0.83% 86% Year ended 7/31/03 $ 304,754 0.73% 3.36% 0.83% 85% Year ended 7/31/04 $ 255,026 0.73% 3.42% 0.84% 84% Year ended 7/31/05 $ 205,078 0.70% 3.45% 0.86% 60% Year ended 7/31/06 $ 164,537 0.71% 3.53% 0.87% 60% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 $ 4,445 0.98% 3.32% 1.07% 86% Year ended 7/31/03 $ 4,317 0.98% 3.10% 1.08% 85% Year ended 7/31/04 $ 4,479 0.98% 3.17% 1.09% 84% Year ended 7/31/05 $ 3,064 0.95% 3.20% 1.10% 60% Year ended 7/31/06 $ 2,559 0.96% 3.28% 1.12% 60% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 303 1.74%** 2.41%** 1.87%** 86% Year ended 7/31/03 $ 1,066 1.73% 2.35% 1.83% 85% Year ended 7/31/04 $ 1,269 1.44% 2.71% 1.84% 84% Year ended 7/31/05 $ 987 0.95% 3.20% 1.86% 60% Year ended 7/31/06 $ 446 0.96% 3.27% 1.87% 60% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 528 1.74%** 2.08%** 1.87%** 86% Year ended 7/31/03 $ 973 1.73% 2.35% 1.83% 85% Year ended 7/31/04 $ 366 1.73% 2.42% 1.83% 84% Year ended 7/31/05 $ 157 1.69% 2.45% 1.85% 60% Year ended 7/31/06 $ 89 1.71% 2.52% 1.87% 60% ------------------------------------------------------------------------------------------------------------------------------------ INTERMEDIATE MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 3 1.16% 3.11% 1.31% 60% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 202-203 Spread FIFTH THIRD FUNDS FINANCIAL HIGHLIGHTS (FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ------------------------------------- NET REALIZED AND UNREALIZED CHANGE IN NET ASSET GAINS/(LOSSES) NET ASSETS VALUE, NET FROM RESULTING BEGINNING INVESTMENT INVESTMENT FROM OF PERIOD INCOME TRANSACTIONS OPERATIONS ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02(g) $ 10.27 0.39 0.20 0.59 Year ended 7/31/03 $ 10.48 0.37 (0.09) 0.28 Year ended 7/31/04 $ 10.39 0.36 0.02 0.38 Year ended 7/31/05 $ 10.39 0.36 (0.09) 0.27 Year ended 7/31/06 $ 10.24 0.36@ (0.21) 0.15 ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02(g) $ 10.28 0.36 0.19 0.55 Year ended 7/31/03 $ 10.48 0.35 (0.10) 0.25 Year ended 7/31/04 $ 10.39 0.33 0.03 0.36 Year ended 7/31/05 $ 10.39 0.33 (0.08) 0.25 Year ended 7/31/06 $ 10.25 0.33@ (0.21) 0.12 ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND CLASS B SHARES Year ended 7/31/02(g) $ 10.10 0.28 0.19 0.47 Year ended 7/31/03 $ 10.29 0.27 (0.10) 0.17 Year ended 7/31/04 $ 10.19 0.24 0.03 0.27 Year ended 7/31/05 $ 10.18 0.25 (0.08) 0.17 Year ended 7/31/06 $ 10.03 0.25@ (0.21) 0.04 ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND CLASS C SHARES Year ended 7/31/02(i) $ 10.25 0.28 0.19 0.47 Year ended 7/31/03 $ 10.44 0.26 (0.09) 0.17 Year ended 7/31/04 $ 10.35 0.26 0.02 0.28 Year ended 7/31/05 $ 10.35 0.25 (0.09) 0.16 Year ended 7/31/06 $ 10.20 0.25@ (0.20) 0.05 ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 10.25 0.31@ (0.22) 0.09 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 10.25 0.38 0.19 0.57 Year ended 7/31/03 $ 10.39 0.31 (0.05) 0.26 Year ended 7/31/04 $ 10.31 0.28 (0.13) 0.15 Year ended 7/31/05 $ 10.17 0.28 (0.13) 0.15 Year ended 7/31/06 $ 10.03 0.28 (0.15) 0.13 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 $ 10.24 0.36 0.19 0.55 Year ended 7/31/03 $ 10.38 0.30 (0.05) 0.25 Year ended 7/31/04 $ 10.30 0.27 (0.13) 0.14 Year ended 7/31/05 $ 10.16 0.26 (0.13) 0.13 Year ended 7/31/06 $ 10.02 0.27 (0.15) 0.12 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 10.35 0.21 0.08 0.29 Year ended 7/31/03 $ 10.38 0.21 (0.05) 0.16 Year ended 7/31/04 $ 10.30 0.18 (0.13) 0.05 Year ended 7/31/05 $ 10.16 0.17 (0.13) 0.04 Year ended 7/31/06 $ 10.02 0.19 (0.15) 0.04 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 10.35 0.19 0.10 0.29 Year ended 7/31/03 $ 10.38 0.21 (0.06) 0.15 Year ended 7/31/04 $ 10.29 0.19 (0.13) 0.06 Year ended 7/31/05 $ 10.16 0.18 (0.14) 0.04 Year ended 7/31/06 $ 10.02 0.19 (0.15) 0.04 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 10.03 0.23 (0.14) 0.09 ------------------------------------------------------------------------------------------------------------------------------------ LESS DIVIDENDS AND DISTRIBUTIONS FROM ---------------------- NET TOTAL TOTAL ASSET RETURN NET NET DIVIDENDS VALUE, EXCLUDES INVESTMENT REALIZED AND END OF SALES INCOME GAINS DISTRIBUTIONS PERIOD CHARGE) ----------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02(g) (0.38) -- (0.38) $ 10.48 5.86% Year ended 7/31/03 (0.37) -- (0.37) $ 10.39 2.65% Year ended 7/31/04 (0.35) (0.03) (0.38) $ 10.39 3.66% Year ended 7/31/05 (0.35) (0.07) (0.42) $ 10.24 2.61% Year ended 7/31/06 (0.36) (0.03) (0.39) $ 10.00 1.46% ----------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02(g) (0.35) -- (0.35) $ 10.48 5.50% Year ended 7/31/03 (0.34) -- (0.34) $ 10.39 2.39% Year ended 7/31/04 (0.33) (0.03) (0.36) $ 10.39 3.40% Year ended 7/31/05 (0.32) (0.07) (0.39) $ 10.25 2.36% Year ended 7/31/06 (0.33) (0.03) (0.36) $ 10.01 1.19% ----------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND CLASS B SHARES Year ended 7/31/02(g) (0.28) -- (0.28) $ 10.29 4.76% Year ended 7/31/03 (0.27) -- (0.27) $ 10.19 1.59% Year ended 7/31/04 (0.25) (0.03) (0.28) $ 10.18 2.62% Year ended 7/31/05 (0.25) (0.07) (0.32) $ 10.03 1.66% Year ended 7/31/06 (0.26) (0.03) (0.29) $ 9.78 0.37% ----------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND CLASS C SHARES Year ended 7/31/02(i) (0.28) -- (0.28) $ 10.44 4.71% Year ended 7/31/03 (0.26) -- (0.26) $ 10.35 1.65% Year ended 7/31/04 (0.25) (0.03) (0.28) $ 10.35 2.65% Year ended 7/31/05 (0.24) (0.07) (0.31) $ 10.20 1.60% Year ended 7/31/06 (0.25) (0.03) (0.28) $ 9.97 0.44% ----------------------------------------------------------------------------------------------------------------------------------- OHIO MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.32) (0.03) (0.35) $ 9.99 0.83% ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 (0.38) (0.05) (0.43) $ 10.39 5.65% Year ended 7/31/03 (0.31) (0.03) (0.34) $ 10.31 2.70% Year ended 7/31/04 (0.28) (0.01) (0.29) $ 10.17 1.43% Year ended 7/31/05 (0.28) (0.01) (0.29) $ 10.03 1.49% Year ended 7/31/06 (0.28) -- (0.28) $ 9.88 1.35% ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 (0.36) (0.05) (0.41) $ 10.38 5.51% Year ended 7/31/03 (0.30) (0.03) (0.33) $ 10.30 2.45% Year ended 7/31/04 (0.27) (0.01) (0.28) $ 10.16 1.37% Year ended 7/31/05 (0.26) (0.01) (0.27) $ 10.02 1.33% Year ended 7/31/06 (0.27) -- (0.27) $ 9.87 1.20% ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 (0.21) (0.05) (0.26) $ 10.38 2.82%* Year ended 7/31/03 (0.21) (0.03) (0.24) $ 10.30 1.70% Year ended 7/31/04 (0.18) (0.01) (0.19) $ 10.16 0.43% Year ended 7/31/05 (0.17) (0.01) (0.18) $ 10.02 0.46% Year ended 7/31/06 (0.18) -- (0.18) $ 9.88 0.42% ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 (0.21) (0.05) (0.26) $ 10.38 2.89%* Year ended 7/31/03 (0.21) (0.03) (0.24) $ 10.29 1.60% Year ended 7/31/04 (0.18) (0.01) (0.19) $ 10.16 0.48% Year ended 7/31/05 (0.17) (0.01) (0.18) $ 10.02 0.43% Year ended 7/31/06 (0.18) -- (0.18) $ 9.88 0.43% ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) (0.24) -- (0.24) $ 9.88 0.91% ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS OF RATIOS OF NET EXPENSES RATIOS OF NET EXPENSES ASSETS, TO INVESTMENT TO END OF AVERAGE INCOME AVERAGE PORTFOLIO PERIOD NET TO AVERAGE NET TURNOVER (000'S) ASSETS NET ASSETS ASSETS (A) RATE (B) ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02(g) $ 169,455 0.86% 3.80% 0.91% 28% Year ended 7/31/03 $ 151,478 0.77% 3.49% 0.85% 20% Year ended 7/31/04 $ 126,343 0.78% 3.39% 0.86% 15% Year ended 7/31/05 $ 104,554 0.79% 3.37% 0.87% 19% Year ended 7/31/06 $ 85,716 0.80% 3.54% 0.90% 25% ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02(g) $ 18,638 1.11% 3.53% 1.17% 28% Year ended 7/31/03 $ 25,177 1.02% 3.23% 1.10% 20% Year ended 7/31/04 $ 26,962 1.03% 3.14% 1.11% 15% Year ended 7/31/05 $ 27,870 1.04% 3.13% 1.12% 19% Year ended 7/31/06 $ 23,032 1.05% 3.29% 1.15% 25% ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND CLASS B SHARES Year ended 7/31/02(g) $ 2,732 1.87% 2.72% 1.93% 28% Year ended 7/31/03 $ 5,101 1.76% 2.48% 1.84% 20% Year ended 7/31/04 $ 4,714 1.78% 2.39% 1.86% 15% Year ended 7/31/05 $ 4,279 1.79% 2.37% 1.87% 19% Year ended 7/31/06 $ 3,426 1.80% 2.54% 1.90% 25% ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND CLASS C SHARES Year ended 7/31/02(i) $ 3,746 1.88% 2.72% 1.94% 28% Year ended 7/31/03 $ 6,395 1.77% 2.48% 1.85% 20% Year ended 7/31/04 $ 4,328 1.78% 2.39% 1.86% 15% Year ended 7/31/05 $ 3,820 1.79% 2.37% 1.87% 19% Year ended 7/31/06 $ 1,217 1.80% 2.50% 1.90% 25% ------------------------------------------------------------------------------------------------------------------------------------ OHIO MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 3 1.29% 3.06% 1.46% 25% ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND INSTITUTIONAL SHARES Year ended 7/31/02 $ 96,269 0.69% 3.64% 0.78% 25% Year ended 7/31/03 $ 118,867 0.69% 3.02% 0.77% 12% Year ended 7/31/04 $ 105,361 0.69% 2.75% 0.78% 21% Year ended 7/31/05 $ 74,099 0.68% 2.70% 0.80% 11% Year ended 7/31/06 $ 50,670 0.68% 2.84% 0.88% 12% ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND CLASS A SHARES Year ended 7/31/02 $ 3,575 0.84% 3.49% 1.03% 25% Year ended 7/31/03 $ 8,006 0.84% 2.84% 1.02% 12% Year ended 7/31/04 $ 7,294 0.84% 2.60% 1.03% 21% Year ended 7/31/05 $ 4,713 0.83% 2.55% 1.05% 11% Year ended 7/31/06 $ 4,728 0.83% 2.70% 1.13% 12% ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND CLASS B SHARES 10/29/01(d) to 7/31/02 $ 374 1.70%** 2.48%** 1.84%** 25% Year ended 7/31/03 $ 2,010 1.69% 1.95% 1.76% 12% Year ended 7/31/04 $ 1,574 1.69% 1.76% 1.78% 21% Year ended 7/31/05 $ 1,175 1.68% 1.71% 1.80% 11% Year ended 7/31/06 $ 607 1.68% 1.83% 1.88% 12% ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND CLASS C SHARES 10/29/01(d) to 7/31/02 $ 795 1.70%** 2.47%** 1.82%** 25% Year ended 7/31/03 $ 3,967 1.69% 1.97% 1.77% 12% Year ended 7/31/04 $ 1,794 1.69% 1.76% 1.78% 21% Year ended 7/31/05 $ 449 1.68% 1.69% 1.80% 11% Year ended 7/31/06 $ 196 1.68% 1.83% 1.88% 12% ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN MUNICIPAL BOND FUND ADVISOR SHARES Year ended 7/31/06 (h) $ 3 1.18% 2.31% 1.26% 12% ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL HIGHLIGHTS AND NOTES TO FINANCIAL STATEMENTS. 204-205 Spread FIFTH THIRD FUNDS NOTES TO FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- (a) During various periods, certain fees were reduced. The ratios shown do not include these fee reductions. (b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (c) The Fund changed its fiscal year end to July 31 from December 31. (d) Reflects date of commencement of operations. (e) As required, effective August 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discounts on debt securities. The effect of this change for the period ended July 31, 2002 for the Balanced Fund, Institutional, Class A, Class B, Class C and Advisor Shares was to increase net investment income per share by $0.02, decrease net realized and unrealized gains and losses per share by ($0.02) and increase the ratio of net investment income to average net assets from 0.96% to 1.11%, 0.75% to 0.86%, 0.09% to 0.10%, 0.10% to 0.11% and 0.47% to 0.55%, respectively. Per share, ratios and supplemental data for periods prior to July 31, 2001 have not been restated to reflect this change in presentation. (f) As required, effective August 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discounts on debt securities. The effect of this change for the period ended July 31, 2002 for the U.S. Government Bond Fund, Institutional, Class A and Class C Shares was to increase net investment income per share by $0.02, decrease net realized and unrealized gains and losses per share by ($0.02) and increase the ratio of net investment income to average net assets from 3.82% to 4.02%, 3.52% to 3.70% and 2.71% to 2.86%, respectively. Per share, ratios and supplemental data for the periods prior to July 31, 2001 have not been restated to reflect this change in presentation. (g) As required, effective August 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discounts on debt securities. The effect of this change for the period ended July 31, 2002 for the Ohio Municipal Bond Fund, Institutional, Class A, Class B and Class C Shares was to increase net investment income per share by $0.00, decrease net realized and unrealized gains and losses per share by ($0.00) and increase the ratio of net investment income to average net assets from 3.77% to 3.80%, 3.50% to 3.53%, 2.69% to 2.72% and 2.70% to 2.72%, respectively. Per share, ratios and supplemental data for periods prior to July 31, 2001 have not been restated to reflect this change in presentation. (h) Commencement of operations was August 1, 2005. ^ Amount is less than $0.005 per share. ++ Formerly the Select Stock Fund. * Not annualized. ** Annualized. # Represents income or gains/(losses) from affiliates. @ Average shares method used in calculation. SEE NOTES TO FINANCIAL STATEMENTS 206 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Shareholders and Trustees of Fifth Third Funds: In our opinion, the accompanying statements of assets and liabilities, including schedules of portfolio investments, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fifth Third Small Cap Growth Fund, Fifth Third Mid Cap Growth Fund, Fifth Third Quality Growth Fund, Fifth Third Large Cap Core Fund, Fifth Third Equity Index Fund, Fifth Third Balanced Fund, Fifth Third Micro Cap Value Fund, Fifth Third Small Cap Value Fund, Fifth Third Multi Cap Value Fund, Fifth Third Disciplined Large Cap Value Fund, Fifth Third LifeModel Aggressive Fund SM, Fifth Third LifeModel Moderately Aggressive Fund SM, Fifth Third LifeModel Moderate Fund SM, Fifth Third LifeModel Moderately Conservative Fund SM, Fifth Third LifeModel Conservative Fund SM, Fifth Third Strategic Income Fund, Fifth Third Dividend Growth Fund (formerly Fifth Third Select Stock Fund), Fifth Third Technology Fund, Fifth Third International Equity Fund, Fifth Third High Yield Bond Fund, Fifth Third Bond Fund, Fifth Third Intermediate Bond Fund, Fifth Third Short Term Bond Fund, Fifth Third U.S. Government Bond Fund, Fifth Third Municipal Bond Fund, Fifth Third Intermediate Municipal Bond Fund, Fifth Third Ohio Municipal Bond Fund, and Fifth Third Michigan Municipal Bond Fund (separate portfolios constituting Fifth Third Funds, hereafter referred to as the "Funds") at July 31, 2006, the results of each of their operations for the year or period then ended, the changes in each of their net assets for the two years or period then ended and the financial highlights for each of the five years or period presented (except for the period ended December 31, 2001), 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, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of Fifth Third Micro Cap Value Fund, Fifth Third Multi Cap Value Fund and Fifth Third Strategic Income Fund for the periods ended December 31, 2001 and prior were audited by other independent auditors. Those independent auditors expressed an unqualified opinion on those statements in their report dated February 22, 2002. PricewaterhouseCoopers LLP September 22, 2006 207 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) -------------------------------------------------------------------------------- FIFTH THIRD FUNDS MANAGEMENT^ The Trustees and Officers of the Funds, their date of birth, 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 3435 Stelzer Road, Columbus, Ohio 43219-3035.
INDEPENDENT TRUSTEES -------------------- NUMBER OF PORTFOLIOS POSITION(S) TERM OF IN FUND HELD OFFICE AND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS DATE OF BIRTH FUNDS TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE ------------------------ ------------------- -------------- ----------------------- ----------- -------------------------- David J. Durham Trustee Indefinite, Chairman of Clipper 36 None Date of Birth: 5/10/1945 June 2001- Products, Inc., a Present wholesale distributor, 2005-present. Chairman of Norris Products Corp., a wholesale distributor, 2005-present. President and Chief Executive Officer of Clipper Products, Inc., 1997-Present. J. Joseph Hale Jr. Trustee Indefinite, Consultant, Duke Energy 36 Trustee for Hanover Date of Birth: 9/11/1949 March 2001- 2006-Present. College, National Present President, Cinergy Underground Freedom Foundation, November Center, The Cincinnati 2001-Present. Zoo, The Ohio Arts President, Cinergy Council, The Cincinnati Corp., Cincinnati Gas & Parks Foundation and Electric Co.,The Union Playhouse in the Park. Light Heat & Power Co., July 2000-October 2001. John E. Jaymont Trustee Indefinite, AVP, PIANKO, Feb. 2002- 36 Printing Industries of Date of Birth: 12/5/1944 October 2001- Present. Business America:Web Offset Assoc., Present Management Consultant, Director; Master Printers April 2000-February of America, Director. 2002. David J. Gruber Trustee Indefinite, Resources Global 36 None Date of Birth: 8/19/1963 December 2003- Professionals, Project Present Professional, December 2004-Present. Ohio Arts & Sports Facilities Commission (state funding oversight agency), CFO,April 2003-December 2004. Ohio Expositions Commission (state fair and expo center), Finance Director, April 1996-March 2003.
________________ ^ Additional disclosures can be found in the Statement of Additional Information, which can be obtained by calling 1-800-282-5706. 208 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- INTERESTED TRUSTEE ------------------ Edward Burke Carey* Chairman-Board Indefinite, Carey Realty 36 The Foundation of the Date of Birth: 7/2/1945 of Trustees January 1989- Investments, Inc. (real Catholic Diocese of Present estate development and Columbus-Trustee consulting), President, Canisius College-Trustee 1990-Present.
OFFICERS -------- NAME AND POSITION(S) HELD TERM OF OFFICE AND PRINCIPAL OCCUPATION(S) DATE OF BIRTH WITH THE FUNDS LENGTH OF TIME SERVED DURING THE PAST 5 YEARS ------------------------ ------------------- --------------------- --------------------------------- Bryan C. Haft President Indefinite, Employee of BISYS Fund Date of Birth: 1/23/1965 June 2005- Services Limited Partnership Present since 1992. Matthew A Ebersbach Vice President Indefinite, Assistant Vice President of Fifth Date of Birth: 1/2/1970 March 2006- Third Bank since 2001. Present Russell D. Ungerman Vice President Indefinite, Assistant Vice President of Fifth Date of Birth: 2/9/1971 September 2002- Third Bank since 1998. Present Rodney L. Ruehle Anti-Money Indefinite, Employee of BISYS Fund Date of Birth: 4/26/1968 Laundering and September 2001- Services Limited Partnership Chief Compliance Present since August 1995. Officer Alaina Metz Assistant Secretary Indefinite, Employee of BISYS Fund Date of Birth: 4/4/1967 September 2004- Services Limited Partnership Present since 1995. Aaron J. Masek Treasurer Indefinite, Employee of BISYS Fund Date of Birth: 1/26/1974 November 2005- Services Limited Partnership Present since July 1996. Warren Leslie Assistant Secretary Indefinite, Employee of BISYS Fund Date of Birth: 2/13/1962 and Assistant September 2001- Services Limited Partnership Treasurer Present since May 1995.
________________ * Mr. Carey is treated by the Trust as an "interested person" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust and the Investment Advisor. Mr. Carey is an "interested person" because of his past business transactions with Fifth Third Bank and its affiliates. 209 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- ADDITIONAL TAX INFORMATION For the taxable year ended July 31, 2006, the following percentage of income dividends paid by the Fund qualify for the dividends received deduction available to corporations: PERCENTAGE ---------- Large Cap Core Fund 100% Equity Index Fund 100% Balanced Fund 55% Micro Cap Value Fund 81% Small Cap Value Fund 14% Multi Cap Value Fund 100% Disciplined Large Cap Value Fund 89% LifeModel Aggressive Fund SM 46% LifeModel Moderately Aggressive Fund SM 27% LifeModel Moderate Fund SM 14% LifeModel Moderately Conservative Fund SM 10% LifeModel Conservative Fund SM 6% Strategic Income Fund 33% For the period ended July 31, 2006, 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. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2005 Form 1099-DIV. For the period ended July 31, 2006, the following Funds paid qualified dividend income of (Amounts in thousands): AMOUNT -------- Large Cap Core Fund $1,932 Equity Index Fund 7,006 Balanced Fund 1,009 Micro Cap Value Fund 73 Small Cap Value Fund 1,220 Multi Cap Value Fund 2,970 Disciplined Large Cap Value Fund 15,131 LifeModel Aggressive Fund SM 1,365 LifeModel Moderately Aggressive Fund SM 1,866 LifeModel Moderate Fund SM 2,047 LifeModel Moderately Conservative Fund SM 469 LifeModel Conservative Fund SM 145 Strategic Income Fund 2,257 International Equity Fund 3,481 The International Equity Fund 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, 2006 are as follows: FOREIGN FOREIGN SOURCE TAX INCOME EXPENSE ------- ------- International Equity Fund $0.17 $0.02 If elected, the pass-through of the foreign tax credit will only affect those persons who are shareholders on the dividend record date in December 2006. These shareholders will receive more detailed information along with their 2006 Form 1099-DIV. 210 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED) -------------------------------------------------------------------------------- EXPENSE EXAMPLES 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, 2006 through July 31, 2006. 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.
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 --------- --------- ---------------- ---------------- Small Cap Growth Fund Institutional Shares $1,000.00 $ 926.40 $ 4.87 1.02% Class A Shares 1,000.00 925.40 6.06 1.27% Class B Shares 1,000.00 921.80 9.63 2.02% Class C Shares 1,000.00 922.00 9.63 2.02% Advisor Shares 1,000.00 924.20 7.25 1.52% Mid Cap Growth Fund Institutional Shares 1,000.00 935.00 5.23 1.09% Class A Shares 1,000.00 934.10 6.43 1.34% Class B Shares 1,000.00 930.40 10.00 2.09% Class C Shares 1,000.00 930.30 10.00 2.09% Advisor Shares 1,000.00 932.90 7.62 1.59% Quality Growth Fund Institutional Shares 1,000.00 915.80 5.13 1.08% Class A Shares 1,000.00 914.80 6.31 1.33% Class B Shares 1,000.00 911.00 9.86 2.08% Class C Shares 1,000.00 911.20 9.86 2.08% Advisor Shares 1,000.00 913.40 7.50 1.58% Large Cap Core Fund Institutional Shares 1,000.00 1,010.50 4.59 0.92% Class A Shares 1,000.00 1,009.20 5.83 1.17% Class B Shares 1,000.00 1,005.40 9.55 1.92% Class C Shares 1,000.00 1,004.70 9.54 1.92% Advisor Shares 1,000.00 1,007.70 7.07 1.42% Equity Index Fund Institutional Shares 1,000.00 1,005.90 0.94 0.19% Class A Shares 1,000.00 1,004.70 2.19 0.44% Class B Shares 1,000.00 1,000.90 5.90 1.19% Class C Shares 1,000.00 1,001.10 5.90 1.19% Advisor Shares 1,000.00 1,003.60 3.43 0.69% Select Shares 1,000.00 1,005.50 1.34 0.27% Preferred Shares 1,000.00 1,005.20 1.69 0.34% Trust Shares 1,000.00 1,004.70 2.19 0.44% Balanced Fund Institutional Shares 1,000.00 971.30 4.69 0.96% Class A Shares 1,000.00 969.70 5.91 1.21% Class B Shares 1,000.00 965.60 9.55 1.96% Class C Shares 1,000.00 965.60 9.55 1.96% Advisor Shares 1,000.00 968.40 7.13 1.46% Micro Cap Value Fund Institutional Shares 1,000.00 932.70 6.52 1.36% Class A Shares 1,000.00 931.10 7.71 1.61% Class B Shares 1,000.00 928.40 11.28 2.36% Class C Shares 1,000.00 928.40 11.28 2.36% Advisor Shares 1,000.00 930.00 8.90 1.86%
____________________________ * 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. 211 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED --------------------------------------------------------------------------------
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 --------- --------- ---------------- ---------------- Small Cap Value Fund Institutional Shares $1,000.00 $ 963.60 $ 5.84 1.20% Class A Shares 1,000.00 962.40 7.06 1.45% Class B Shares 1,000.00 958.70 10.68 2.20% Class C Shares 1,000.00 958.60 10.68 2.20% Advisor Shares 1,000.00 961.20 8.27 1.70% Multi Cap Value Fund Institutional Shares 1,000.00 1,015.50 6.45 1.29% Class A Shares 1,000.00 1,014.30 7.69 1.54% Class B Shares 1,000.00 1,010.60 11.42 2.29% Class C Shares 1,000.00 1,010.90 11.42 2.29% Advisor Shares 1,000.00 1,013.10 8.93 1.79% Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,053.50 5.45 1.07% Class A Shares 1,000.00 1,052.20 6.72 1.32% Class B Shares 1,000.00 1,047.90 10.51 2.07% Class C Shares 1,000.00 1,048.00 10.51 2.07% Advisor Shares 1,000.00 1,050.50 7.98 1.57% LifeModel Aggressive Fund SM Institutional Shares 1,000.00 983.80 0.39 0.08% Class A Shares 1,000.00 982.50 1.62 0.33% Class B Shares 1,000.00 978.70 5.30 1.08% Class C Shares 1,000.00 978.70 5.30 1.08% Advisor Shares 1,000.00 981.70 2.85 0.58% LifeModel Moderately Aggressive Fund SM Institutional Shares 1,000.00 990.50 0.39 0.08% Class A Shares 1,000.00 989.90 1.63 0.33% Class B Shares 1,000.00 986.20 5.32 1.08% Class C Shares 1,000.00 986.10 5.32 1.08% Advisor Shares 1,000.00 988.10 2.86 0.58% LifeModel Moderate Fund SM Institutional Shares 1,000.00 995.10 0.40 0.08% Class A Shares 1,000.00 993.80 1.63 0.33% Class B Shares 1,000.00 990.10 5.33 1.08% Class C Shares 1,000.00 990.00 5.33 1.08% Advisor Shares 1,000.00 992.30 2.87 0.58% LifeModel Moderately Conservative Fund SM Institutional Shares 1,000.00 998.30 0.40 0.08% Class A Shares 1,000.00 997.90 1.63 0.33% Class B Shares 1,000.00 993.20 5.34 1.08% Class C Shares 1,000.00 993.90 5.34 1.08% Advisor Shares 1,000.00 995.20 2.87 0.58% LifeModel Conservative Fund SM Institutional Shares 1,000.00 1,004.10 0.40 0.08% Class A Shares 1,000.00 1,002.80 1.64 0.33% Class B Shares 1,000.00 998.90 5.35 1.08% Class C Shares 1,000.00 998.00 5.35 1.08% Advisor Shares 1,000.00 1,001.10 2.88 0.58% Strategic Income Fund Institutional Shares 1,000.00 1,015.40 6.55 1.31% Class A Shares 1,000.00 1,014.20 7.79 1.56% Class B Shares 1,000.00 1,010.50 11.52 2.31% Class C Shares 1,000.00 1,010.60 11.52 2.31% Advisor Shares 1,000.00 1,013.00 9.03 1.81% Dividend Growth Fund Institutional Shares 1,000.00 1,025.90 3.67 0.73% Class A Shares 1,000.00 1,026.00 4.92 0.98% Class B Shares 1,000.00 1,021.20 8.67 1.73% Class C Shares 1,000.00 1,022.00 8.67 1.73% Advisor Shares 1,000.00 1,022.90 6.17 1.23% Technology Fund Institutional Shares 1,000.00 864.30 6.89 1.49% Class A Shares 1,000.00 863.20 8.04 1.74% Class B Shares 1,000.00 861.20 11.49 2.49% Class C Shares 1,000.00 860.80 11.53 2.50% Advisor Shares 1,000.00 862.60 9.28 2.01%
____________________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 212 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED --------------------------------------------------------------------------------
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 --------- --------- ---------------- ---------------- International Equity Fund Institutional Shares $1,000.00 $1,027.20 $ 6.79 1.35% Class A Shares 1,000.00 1,025.60 8.04 1.60% Class B Shares 1,000.00 1,021.80 11.78 2.35% Class C Shares 1,000.00 1,021.60 11.78 2.35% Advisor Shares 1,000.00 1,023.90 9.28 1.85% High Yield Bond Fund Institutional Shares 1,000.00 1,001.30 1.30 0.74% Class A Shares 1,000.00 1,000.20 1.74 0.99% Class B Shares 1,000.00 996.10 3.05 1.74% Class C Shares 1,000.00 996.60 3.05 1.74% Advisor Shares 1,000.00 998.70 2.17 1.24% Bond Fund Institutional Shares 1,000.00 1,004.30 3.58 0.72% Class A Shares 1,000.00 1,004.10 4.82 0.97% Class B Shares 1,000.00 999.20 8.53 1.72% Class C Shares 1,000.00 1,000.20 8.53 1.72% Advisor Shares 1,000.00 1,002.70 6.06 1.22% Intermediate Bond Fund Institutional Shares 1,000.00 1,010.00 3.49 0.70% Class A Shares 1,000.00 1,008.70 4.73 0.95% Class B Shares 1,000.00 1,009.80 4.73 0.95% Class C Shares 1,000.00 1,006.00 8.46 1.70% Advisor Shares 1,000.00 1,007.70 6.02 1.21% Short Term Bond Fund Institutional Shares 1,000.00 1,016.10 3.20 0.64% Class A Shares 1,000.00 1,014.90 4.45 0.89% Class C Shares 1,000.00 1,011.20 8.18 1.64% Advisor Shares 1,000.00 1,013.00 5.69 1.14% U.S. Government Bond Fund Institutional Shares 1,000.00 1,008.10 3.44 0.69% Class A Shares 1,000.00 1,006.80 4.68 0.94% Class C Shares 1,000.00 1,002.80 8.39 1.69% Advisor Shares 1,000.00 1,005.60 5.92 1.19% Municipal Bond Fund Institutional Shares 1,000.00 1,006.10 3.03 0.61% Class A Shares 1,000.00 1,005.90 4.28 0.86% Class B Shares 1,000.00 1,001.20 7.99 1.61% Class C Shares 1,000.00 1,002.10 7.99 1.61% Advisor Shares 1,000.00 1,004.60 5.52 1.11% Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,007.00 3.53 0.71% Class A Shares 1,000.00 1,005.60 4.77 0.96% Class B Shares 1,000.00 1,005.80 4.77 0.96% Class C Shares 1,000.00 1,001.90 8.49 1.71% Advisor Shares 1,000.00 1,004.80 5.77 1.16% Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,007.00 3.93 0.79% Class A Shares 1,000.00 1,005.70 5.17 1.04% Class B Shares 1,000.00 1,001.10 8.88 1.79% Class C Shares 1,000.00 1,002.00 8.89 1.79% Advisor Shares 1,000.00 1,003.70 6.41 1.29% Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,006.60 3.38 0.68% Class A Shares 1,000.00 1,005.90 4.13 0.83% Class B Shares 1,000.00 1,002.40 8.34 1.68% Class C Shares 1,000.00 1,002.60 8.34 1.68% Advisor Shares 1,000.00 1,004.30 5.86 1.18%
____________________________ * 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. 213 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. However, you may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 --------- --------- ---------------- ---------------- Small Cap Growth Fund Institutional Shares $1,000.00 $1,019.74 $ 5.11 1.02% Class A Shares 1,000.00 1,018.50 6.36 1.27% Class B Shares 1,000.00 1,014.78 10.09 2.02% Class C Shares 1,000.00 1,014.78 10.09 2.02% Advisor Shares 1,000.00 1,017.26 7.60 1.52% Mid Cap Growth Fund Institutional Shares 1,000.00 1,019.39 5.46 1.09% Class A Shares 1,000.00 1,018.15 6.71 1.34% Class B Shares 1,000.00 1,014.43 10.44 2.09% Class C Shares 1,000.00 1,014.43 10.44 2.09% Advisor Shares 1,000.00 1,016.91 7.95 1.59% Quality Growth Fund Institutional Shares 1,000.00 1,019.44 5.41 1.08% Class A Shares 1,000.00 1,018.20 6.66 1.33% Class B Shares 1,000.00 1,014.48 10.39 2.08% Class C Shares 1,000.00 1,014.48 10.39 2.08% Advisor Shares 1,000.00 1,016.96 7.90 1.58% Large Cap Core Fund 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% Advisor Shares 1,000.00 1,017.75 7.10 1.42% Equity Index Fund 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% Advisor Shares 1,000.00 1,021.37 3.46 0.69% Select Shares 1,000.00 1,023.46 1.35 0.27% Preferred Shares 1,000.00 1,023.11 1.71 0.34% Trust Shares 1,000.00 1,022.61 2.21 0.44% Balanced Fund 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% Advisor Shares 1,000.00 1,017.55 7.30 1.46% Micro Cap Value Fund Institutional Shares 1,000.00 1,018.05 6.80 1.36% Class A Shares 1,000.00 1,016.81 8.05 1.61% Class B Shares 1,000.00 1,013.09 11.78 2.36% Class C Shares 1,000.00 1,013.09 11.78 2.36% Advisor Shares 1,000.00 1,015.57 9.30 1.86%
____________________________ * 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. 214 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED --------------------------------------------------------------------------------
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 --------- --------- ---------------- ---------------- Small Cap Value Fund 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% Advisor Shares 1,000.00 1,016.36 8.50 1.70% Multi Cap Value Fund Institutional Shares 1,000.00 1,018.40 6.46 1.29% Class A Shares 1,000.00 1,017.16 7.70 1.54% Class B Shares 1,000.00 1,013.44 11.43 2.29% Class C Shares 1,000.00 1,013.44 11.43 2.29% Advisor Shares 1,000.00 1,015.92 8.95 1.79% Disciplined Large Cap Value Fund Institutional Shares 1,000.00 1,019.49 5.36 1.07% Class A Shares 1,000.00 1,018.25 6.61 1.32% Class B Shares 1,000.00 1,014.53 10.34 2.07% Class C Shares 1,000.00 1,014.53 10.34 2.07% Advisor Shares 1,000.00 1,017.01 7.85 1.57% LifeModel Aggressive Fund 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% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Moderately Aggressive Fund 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% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Moderate Fund 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% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Moderately Conservative Fund 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% Advisor Shares 1,000.00 1,021.92 2.91 0.58% LifeModel Conservative Fund 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% Advisor Shares 1,000.00 1,021.92 2.91 0.58% Strategic Income Fund Institutional Shares 1,000.00 1,018.30 6.56 1.31% Class A Shares 1,000.00 1,017.06 7.80 1.56% Class B Shares 1,000.00 1,013.34 11.53 2.31% Class C Shares 1,000.00 1,013.34 11.53 2.31% Advisor Shares 1,000.00 1,015.82 9.05 1.81% Dividend Growth Fund Institutional Shares 1,000.00 1,021.17 3.66 0.73% Class A Shares 1,000.00 1,019.93 4.91 0.98% Class B Shares 1,000.00 1,016.22 8.65 1.73% Class C Shares 1,000.00 1,016.22 8.65 1.73% Advisor Shares 1,000.00 1,018.70 6.16 1.23% Technology Fund Institutional Shares 1,000.00 1,017.41 7.45 1.49% Class A Shares 1,000.00 1,016.17 8.70 1.74% Class B Shares 1,000.00 1,012.45 12.42 2.49% Class C Shares 1,000.00 1,012.40 12.47 2.50% Advisor Shares 1,000.00 1,014.83 10.04 2.01%
____________________________ * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. 215 FIFTH THIRD FUNDS SUPPLEMENTAL INFORMATION (UNAUDITED), CONTINUED --------------------------------------------------------------------------------
EXPENSE EXPENSE BEGINNING ENDING PAID RATIO ACCOUNT ACCOUNT DURING DURING VALUE VALUE PERIOD* PERIOD 2/1/06 7/31/06 2/1/06 - 7/31/06 2/1/06 - 7/31/06 --------- --------- ---------------- ---------------- International Equity Fund 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% Advisor Shares 1,000.00 1,015.62 9.25 1.85% High Yield Bond Fund 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% Advisor Shares 1,000.00 1,018.65 6.21 1.24% Bond Fund Institutional Shares 1,000.00 1,021.22 3.61 0.72% Class A Shares 1,000.00 1,019.98 4.86 0.97% Class B Shares 1,000.00 1,016.27 8.60 1.72% Class C Shares 1,000.00 1,016.27 8.60 1.72% Advisor Shares 1,000.00 1,018.74 6.11 1.22% Intermediate Bond Fund Institutional Shares 1,000.00 1,021.32 3.51 0.70% Class A Shares 1,000.00 1,020.08 4.76 0.95% Class B Shares 1,000.00 1,020.08 4.76 0.95% Class C Shares 1,000.00 1,016.36 8.50 1.70% Advisor Shares 1,000.00 1,018.79 6.06 1.21% Short Term Bond Fund 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% Advisor Shares 1,000.00 1,019.14 5.71 1.14% U.S. Government Bond Fund Institutional Shares 1,000.00 1,021.37 3.46 0.69% Class A Shares 1,000.00 1,020.13 4.71 0.94% Class C Shares 1,000.00 1,016.41 8.45 1.69% Advisor Shares 1,000.00 1,018.89 5.96 1.19% Municipal Bond Fund Institutional Shares 1,000.00 1,021.77 3.06 0.61% Class A Shares 1,000.00 1,020.53 4.31 0.86% Class B Shares 1,000.00 1,016.81 8.05 1.61% Class C Shares 1,000.00 1,016.81 8.05 1.61% Advisor Shares 1,000.00 1,019.29 5.56 1.11% Intermediate Municipal Bond Fund Institutional Shares 1,000.00 1,021.27 3.56 0.71% Class A Shares 1,000.00 1,020.03 4.81 0.96% Class B Shares 1,000.00 1,020.03 4.81 0.96% Class C Shares 1,000.00 1,016.31 8.55 1.71% Advisor Shares 1,000.00 1,019.04 5.81 1.16% Ohio Municipal Bond Fund Institutional Shares 1,000.00 1,020.88 3.96 0.79% Class A Shares 1,000.00 1,019.64 5.21 1.04% Class B Shares 1,000.00 1,015.92 8.95 1.79% Class C Shares 1,000.00 1,015.92 8.95 1.79% Advisor Shares 1,000.00 1,018.40 6.46 1.29% Michigan Municipal Bond Fund Institutional Shares 1,000.00 1,021.42 3.41 0.68% Class A Shares 1,000.00 1,020.68 4.16 0.83% Class B Shares 1,000.00 1,016.46 8.40 1.68% Class C Shares 1,000.00 1,016.46 8.40 1.68% Advisor Shares 1,000.00 1,018.94 5.91 1.18%
____________________________ * 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. 216 ADDRESSES -------------------------------------------------------------------------------- Fifth Third Funds Fifth Third Funds Stock and Bond Mutual Funds 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------ Investment Advisor Fifth Third Asset Management, Inc. 38 Fountain Square Plaza Cincinnati, Ohio 45263 ------------------------------------------------------------------------------------------ Sub-Advisor (International Equity Fund only) Morgan Stanley Investment Management Inc. 1221 Avenue of the Americas New York, New York 10020 ------------------------------------------------------------------------------------------ Sub-Advisor (High Yield Bond Fund only) Fort Washington Investment Advisors, Inc. 420 East Fourth Street Cincinnati, Ohio 45202 ------------------------------------------------------------------------------------------ Distributor Fifth Third Funds Distributor, Inc. 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------ Administrator, Accountant and Custodian Fifth Third Bank 38 Fountain Square Plaza Cincinnati, Ohio 45263 ------------------------------------------------------------------------------------------ Sub-Administrator BISYS Fund Services Limited Partnership 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------ Transfer and Dividend Disbursing Agent BISYS Fund Services Ohio, Inc. and Sub-Accountant 3435 Stelzer Road Columbus, Ohio 43219 ------------------------------------------------------------------------------------------ Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP 100 East Broad Street Suite 2100 Columbus, Ohio 43215 ------------------------------------------------------------------------------------------
[LOGO] FIFTH THIRD FUNDS 9/06 AR-STBD-06 ITEM 2. CODE OF ETHICS. Disclose whether, as of the end of the period covered by the 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. If the registrant has not adopted such a code of ethics, explain why it has not done so. 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. THIS CODE OF ETHICS IS INCLUDED AS AN EXHIBIT. The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its 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, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 12(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item. If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the 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, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver. DURING THE PERIOD COVERED BY THE REPORT, WITH RESPECT TO THE REGISTRANT'S CODE OF ETHICS THAT APPLIES TO ITS PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR FUNCTIONS; THERE HAVE BEEN NO AMENDMENTS TO, NOR ANY WAIVERS GRANTED FROM, A PROVISION THAT RELATES TO ANY ELEMENT OF THE CODE OF ETHICS DEFINITION ENUMERATED IN PARAGRAPH (B) OF THIS ITEM 2. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) Disclose that the registrant's board of directors has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)). (3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert. 3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT COMMITTEE. 3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS DAVID J. GRUBER, WHO IS "INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. AUDIT FEES 2005 - $270,600 2006 - $320,760 (b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. AUDIT-RELATED FEES 2005 - $21,000 2006 - $22,000 (c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. TAX FEES 2005 - $91,200 2006 - $102,718 (d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. ALL OTHER FEES 2005 - $0 2006 - $0 (e) (1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. 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 TRUST'S CHAIRMAN. THE TRUST'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 IRS 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 TRUST'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 IRS 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 CHAIRMAN OF THE TRUST. 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) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. 2005 - NONE 2006 - NONE (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. NOT APPLICABLE. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser 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 adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. 2005 - $91,200 2006 - $102,718 (h) Disclose whether the registrant's audit committee of the board of directors has considered whether the provision of nonaudit 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. 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. 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. Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item. THE TRUST, EFFECTIVE SEPTEMBER 29, 2004, ADOPTED PROCEDURES BY WHICH SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES. ITEM 11. CONTROLS AND PROCEDURES. (a) Disclose the conclusions of the registrant's principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the 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. THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING THAT OCCURRED DURING THE SECOND FISCAL QUARTER OF THE PERIOD COVERED BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING. ITEM 12. EXHIBITS. (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS ATTACHED HERETO. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by rule 30a-2(b) under the Act as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant incorporates it by reference. CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH. 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. (Registrant) Fifth Third Funds ------------------------------------------------------------------- By (Signature and Title) /s/ Aaron J. Masek Aaron J. Masek, Treasurer ------------------------------------------------------- Date October 5, 2006 ---------------- 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. By (Signature and Title) Bryan C. Haft, President -------------------------------------------------------- Date October 5, 2006 ---------------- By (Signature and Title) Aaron J. Masek, Treasurer -------------------------------------------------------- Date October 5, 2006 ---------------- INCLUDE A CODE OF ETHICS OR AMENDMENT TO A CODE OF ETHICS FILED UNDER ITEM 11(A) OF FORM N-CSR IN A SINGLE EDGAR EXHIBIT NAMED EX-99.CODE ETH. ALL SECTION 302 CERTIFICATIONS SHOULD BE INCLUDED IN ONE EDGAR EX-99.CERT EXHIBIT DOCUMENT AND ALL SECTION 906 CERTIFICATIONS SHOULD BE INCLUDED IN A SEPARATE EDGAR EX-99.906CERT EXHIBIT DOCUMENT TO FORM N-CSR. [FGS-DON'T INCLUDE THIS LANGUAGE IN THE FILING.]