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QUALITY GROWTH FUND
EQUITY INCOME FUND
Fifth Third Funds CARDINAL FUND
Stock and Bond Mutual Funds
PINNACLE FUND
Semi-Annual Report to Shareholders
BALANCED FUND
MID CAP FUND
INTERNATIONAL EQUITY FUND
BOND FUND FOR INCOME
QUALITY BOND FUND
U.S. GOVERNMENT SECURITIES FUND
MUNICIPAL BOND FUND
OHIO TAX FREE BOND FUND
January 31, 1999
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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 (888)799-5353.
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.
For more complete information on the Fifth Third Funds, including fees, expenses
and sales charges, please call 1-888-799-5353 for a prospectus, which you should
read carefully before you invest or send money. The Fifth Third Funds are
distributed by BISYS Fund Services, L.P.
Fifth Third Bank and its affiliate Heartland Capital Management, Inc. serve as
Investment Advisors to the Funds and receive a fee for their services.
Fifth Third Funds, like all mutual funds:
. are NOT FDIC insured
. have no bank guarantee
. may lose value
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Letter from the Chief Investment Officer
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Dear Shareholder:
We are pleased to present the Fifth Third Funds' semiannual report to
Shareholders for the six-month period ended January 31, 1999. This letter
includes a review of the principles that guide our investment strategy,
comments on recent economic and market conditions and a discussion of our
outlook for the coming period.
Strong returns after a shaky August
In our opinion, the financial markets performed well for the six-month
period ended January 31, 1999. For example, the Standard & Poor's 500 Stock
Index1 delivered a total return of 15.02% for the six-month period ended
January 31, 1999. Low inflation and low interest rates, coupled with
moderate economic growth, drove the S&P 500 Index to an all-time high as
the period began. In August 1998, however, problems in foreign markets,
such as Japan and Russia, caused several large companies to forewarn
investors that their earnings could be lower than expected. In our view,
that helped to trigger a 14% decline in the stock market during August
1998--the worst monthly performance for the S&P 500 Index in a decade. The
Federal Reserve Board (the Fed) lowered the discount rate (the interest
rate the Fed charges banks for overnight loans) three times in the fall to
shore up financial markets and provide additional liquidity. That policy
increased liquidity and helped to restore investor confidence in the stock
market. The economy and the market experienced a strong fourth quarter as
sales of U.S. companies' products and services rebounded with the economy.
In the fixed-income markets, investor uncertainty at the beginning of the
period caused a flight to quality that pushed Treasury yields down and in
turn led to outsized returns for the Treasury sector. Although corporate
issues recovered, some lost ground later in the period. Inflation and
yields remained low throughout the period. The yield on the 30-year
Treasury bond fell from 5.71% at the beginning of the period to 5.09% at
the end of the period.
Strong performance
Our disciplined, long-term approach to stock market investing calls for
buying shares of high-quality growth companies at attractive prices--an
approach that, in our opinion, was handsomely rewarded during the recent
six months. That said, we feel two Fifth Third Funds did perform
exceptionally well during the period: The Quality Growth Fund (Investment A
Shares) and the Pinnacle Fund (Investment A Shares), which both earned
five-star overall ratings as of 1/31/99 among 2,859 domestic equity funds2
from Morningstar, Inc., a mutual fund tracking firm. Our strategy of
identifying and capitalizing on long-term trends in the economy and the
stock market led the equity funds to invest heavily in the health-care,
financial services and technology sectors during the period. We believe
that health-care and financial services stocks benefited as the baby boomer
generation spent more on its health and preparation for retirement. Many
technology companies will benefit from the proliferation of the Internet,
as businesses and consumers alike buy products to take advantage of that
medium's immense potential. The volatility in the market, especially among
technology stocks, provided ample opportunities to purchase such shares at
excellent prices, allowing us to position the Funds' holdings well for the
future. The fixed-income funds continued to focus on high-quality issues.
That strategy served the funds well during the period, as investors placed
a premium on security and liquidity. Our fixed-income fund managers may
increase yield for shareholders by slightly extending the funds' average
maturities or by finding value in different sectors.
1
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Letter from the Chief Investment Officer (continued)
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Going forward
The gains of 1998 came as a result of moderate economic growth, good
corporate profits, low inflation and low interest rates. We expect those
trends to continue in 1999, providing attractive stock market gains of
around 8% to 11% for the year. Economic growth may be somewhat slower this
year as compared to last, but we do not expect to encounter a recession.
The equity funds will seek to continue favoring companies in the financial
services, health-care and technology sectors, capitalizing on long-term
trends in the economy. We will use any downturns in those sectors to
purchase shares of high-quality companies at attractive prices. We do not
expect significant interest rate fluctuations in 1999, although rates may
move lower late in the year. We will watch closely to see if changes force
the Fed to raise interest rates in order to head off inflation. Regardless
of short-term stock market volatility, we will continue to focus on the
long term. Thank you for your continued confidence in the Fifth Third
Funds.
Sincerely,
/s/ James D. Berghausen, CFA
James D. Berghausen, CFA
Chief Investment Officer
Fifth Third Bank
Past performance is not indicative of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
1 The Standard & Poor's 500 Stock Index represents the performance of the U.S.
stock market as a whole.
2 Morningstar proprietary ratings reflect risk-adjusted performance through
1/31/99. The ratings are subject to change every month. Past performance is no
guarantee of future results. Morningstar ratings are calculated from a fund's
three-, five- and ten-year returns (with fee adjustments) in excess of 90-day
Treasury bill returns, and a risk factor that reflects fund performance below
90-day Treasury bill returns. The Fifth Third Quality Growth Fund and the Fifth
Third Pinnacle Fund received five stars for the three- and five-year periods.
They were rated among 2,859 and 1,734 for the domestic equity funds for the
three- and five-year periods respectively. Ten percent of the funds in a rating
category receive five stars; 22.5% receive four stars; 35% receive three stars;
22.5% receive two stars; and 10% receive one star.
2
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Investment Reviews
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Fifth Third Quality Growth Fund
An interview with Steven E. Folker, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund during the period posted a total return of 20.68% on Investment
A Shares (before the deduction of sales charge),1 compared to 15.02% for
the S&P 500 Stock Index,2 one of the Fund's benchmarks.
Q. What economic or market conditions contributed to the Fund's
performance?
A. The stock market was extremely volatile during the period. Corporate
earnings growth slowed early in the period, causing a significant market
correction in October. To counteract fears of a global credit crisis, the
Federal Reserve Board cut interest rates three times, eventually fueling a
rebound in stock prices. Overall, the period was characterized by low
interest rates, low inflation and flat corporate earnings.
Q. How did you manage the Fund in that environment?
A. We continued to invest in shares of high-quality companies with visible
long-term earnings growth potential as well as good short-term earnings
performance. We found opportunities in undervalued shares in the technology
and retail sectors. Most of the companies we invested in during this period
increased their earnings by 15% to 16%.
Q. What stocks helped boost the Fund's performance?
A. The portfolio's strongest performers in the technological sector
included Cisco Systems, Inc. (3.5% of net assets), Microsoft Corp. (3.2%)
and Lucent Technologies, Inc. (2.2%). In the retail sector, Wal-Mart
Stores, Inc. (2.6%) and Home Depot (5.1%) performed well.*
Q. What is your outlook for the stock market, and how will you manage the
Fund in that environment?
A. We believe that the market will be characterized by high volatility in
1999, despite low interest rates and low inflation. We also expect a
resumption of growth in corporate earnings, which may rise 5% to 8% during
the coming year. We will continue to focus on companies growing their
earnings at above-average rates and selling at reasonable valuations.
Q. What were the Fund's top five holdings as of January 31, 1999?
A. The Fund's top five holdings were Intel Corp. (5.6% of net assets), Home
Depot, Inc. (5.1%), Freddie Mac (4.3%), MCI WorldCom, Inc. (4.1%) and
Guidant Corp (4.1%).*
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Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was 15.27%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Fund's performance is measured against the Standard & Poor's 500
Stock Index, which represents the performance of the U.S. stock market as a
whole. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fifth Third Quality Growth Fund
does reflect the deduction of fees for these value-added services.
3
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Fifth Third Equity Income Fund
An interview with John B. Schmitz, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund posted a total return of 6.16% on Investment A Shares (before
deduction of sales charge).1 The Fund's total return compared to a 4.57%
return for the Lipper Equity Income Funds Average,2 and a 15.02% return for
the S&P 500 Stock Index.3 The Fund's net asset value decreased from $15.38
(Investment A Shares) per share at the beginning of the period to $14.76
per share at the end of the period.
Q. What was the environment for stock market investors during the recent
period?
A. The stock market was unusually volatile during the recent period. The
Russian short-term debt default, the troubles of the Long-Term Capital
Management hedge fund and continuing economic troubles in Asia and Latin
America, we feel, created uncertainty among investors during August.
Investors anticipated that those problems would have a negative impact on
U.S. corporate earnings, and a sharp sell-off ensued. Corporate earnings
were disappointing during the period, but the Federal Reserve Board
responded to the global financial crisis with three interest rate cuts.
This restored liquidity to global markets, and stocks rebounded from their
October bottom to reach new highs later in the period.
Q. How did you manage the Fund in that environment?
A. We continued to invest in shares of high-quality companies with stable
earnings and dividend growth. The Fund's primary objective is to provide
shareholders with a constant stream of dividend income. Therefore, we did
not invest heavily in the low-yielding technology sector. As a result, the
Fund did not keep pace with the market upturn, which was largely powered by
technology stocks. The Fund was overweight in telecommunications and
capital goods and underweight in basic materials and utilities.
Q. What is your outlook for the stock market, and how will you manage the
Fund in that environment?
A. We expect continued market volatility. Given the current level of
interest rates and inflation, current market valuations seem sustainable.
However, investor concerns about Y2K issues, the health of the global
economy, and the ability of high-quality corporations to generate strong
earnings could cause further market setbacks. Regardless of market
conditions, we continue to focus on shares of high-quality companies with
potentially strong earnings and dividend growth. We believe this strategy
should allow the Fund to meet the objectives of long-term investors.
Q. What were the Fund's top five holdings as of January 31, 1999?
A. The Fund's top five holdings were Bank of New York Co., Inc. (4.5% of
net assets), Pitney Bowes, Inc. (4.2%), Ameritech Corp. (4.1%), Mellon Bank
Corp. (4.0%) and ALLTEL Corp. (4.0%).*
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Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was 1.42%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Lipper Equity Income Funds Average is comprised of funds that seek
relatively high current income and growth of income through investing 60%
or more of their portfolio in equities.
3 The Fund's performance is measured against the Standard & Poor's 500
Stock Index, which represents the performance of the U.S. stock market as a
whole. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fifth Third Equity Income Fund does
reflect the deduction of fees for these value-added services.
4
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Fifth Third Cardinal Fund
An interview with Steven E. Folker, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund during the period posted a total return of 14.95% for the
Investment A Shares (before deduction of sales charge),1 compared to a
15.02% return for the S&P 500 Stock Index,2 one of the Fund's benchmarks.
Q. What economic or market factors affected the Fund's performance during
the period?
A. The economy was characterized by low interest rates, low inflation and
slower corporate earnings growth during the period. Those conflicting
forces led to substantial volatility in the stock market, which declined
sharply in the late summer and then rebounded, due to three interest rate
cuts by the Federal Reserve Board. Both large- and small-company stocks
performed well during that market recovery.
Q. How did you manage the Fund in that environment?
A. The Fund benefited from its investments in large companies. For example,
companies such as General Electric Co. (3.8% of net assets) and Microsoft
Corp. (5.5%) performed well overall. The market correction in October also
provided opportunities to buy shares of companies at attractive prices. In
particular, we found opportunities in the technological and
telecommunications sectors, both of which rebounded sharply during the
fourth quarter.
Q. What other stocks helped boost performance?
A. Stocks that helped boost the Fund's performance included Oracle Corp.
(0.7% of net assets), Cisco Systems, Inc. (2.0%), Intel Corp. (3.3%),
Lucent Technologies, Inc. (3.1%) and Dell Computer Corp. (1.8%) in
technology. MCI WorldCom, Inc. (3.7%) and AirTouch Communications, Inc.
(1.7%) performed well in communications services, and Wal-Mart Stores, Inc.
(1.5%) and Lowe's Cos., Inc. (1.4%) performed well in retail.
Q. Did you avoid any sectors?
A. We maintained the Fund's underweighting in the energy sector, due to the
decline in oil prices, which threatened those companies' ability to
increase profits.
Q. What is your outlook for the stock market, and how will you manage the
Fund in that environment?
A. We expect interest rates and inflation to remain relatively low, with
corporate earnings growing 5% to 8% over the next year. We believe that the
stock market should continue to be very volatile. In that environment, we
will continue to invest in companies that show visible long-term earnings
growth, as well as solid short-term earnings performance. We will continue
monitoring the valuations of the Fund's investments to avoid holding
overvalued stocks.
Q. What were the Fund's top five holdings as of January 31, 1999?
A. The Fund's top five holdings were Microsoft Corp. (5.4% of net assets),
General Electric Co. (3.8%), MCI WorldCom, Inc. (3.7%), Intel Corp. (3.3%)
and Lucent Technologies, Inc. (3.1%).*
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Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was 9.81%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Fund's performance is measured against the Standard & Poor's 500
Stock Index, which represents the performance of the U.S. stock market as a
whole. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fifth Third Cardinal Fund does
reflect the deduction of fees for these value-added services.
5
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Fifth Third Pinnacle Fund
An interview with Thomas Maurath, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund's net asset value rose from $32.48 (Investment A Shares) per
share at the beginning of the period to $37.10 per share by the end of the
same period. The Fund posted a total return of 16.87% on Investment A
shares (before deduction of sales charge),1 compared to a 15.02% return for
S&P 500 Stock Index.2
Q. What factors affected the Fund's performance during that period?
A. The markets were exceptionally volatile during the first half of the
period. Investor concerns about the Russian short-term debt default,
continuing financial troubles in Asia and Latin America and the
difficulties encountered by the Long-Term Capital Management hedge fund
created an uncertain environment in August. A period of indiscriminate
selling followed, and the stock market declined through early October.
Three Federal Reserve Board interest rate cuts and encouraging comments by
Fed Chairman Alan Greenspan largely triggered the stock market rally, and
prices reached new heights. Shares of the large, growth-oriented companies
that this Fund purchases performed well during the period. Their
performance may be attributed to the firms' ability to produce good
earnings growth despite global financial problems.
Q. How did you manage the Fund in that environment?
A. We maintained our focus on strong companies with excellent earnings
growth prospects and also took advantage of the market's volatility and
purchased discounted shares of well-established companies. During the
period, the Fund was underweight in the energy and utility sectors and
slightly overweight in the technology, financial services and consumer
goods sectors.
Q. Where did you find the best investment opportunities during the period?
A. In the telecommunications sector, AirTouch Communications, Inc. (2.7% of
net assets) performed well during the period. Guidant Corp. (2.6%) was a
strong performer in the health-care sector. We also found buying
opportunities in the technology sector during the market downturn, which
benefited the Fund when technology stocks led the market's upswing.
Q. What is your outlook for the economy, and how will you manage the Fund
in that environment?
A. In our opinion, corporate earnings should continue to grow and
inflationary pressures will remain muted. However, stock market valuations
are not cheap. Therefore, we expect more modest gains from stocks amid
considerable volatility. We continue to focus on companies whose earnings
are likely to exceed Wall Street's expectations, a strategy that may work
well for long-term investors.
Q. What are the Fund's top five holdings?
A. As of January 31, 1999, the Fund's top five holdings were Providian
Financial Corp. (2.9% of the portfolio), Microsoft Corp. (2.7%), AirTouch
Communications, Inc. (2.7%), EMC Corp. (2.7%) and Intel Corp. (2.7%).*
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Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was 11.63%.
2 The Fund's performance is compared to the Standard & Poor's 500 Stock
Index, which represents the performance of the U.S. stock market as a
whole. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fifth Third Pinnacle Fund does
reflect the deduction of fees for these value-added services.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
6
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Fifth Third Balanced Fund
An interview with Steven E. Folker and Roberta Tucker, portfolio managers.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund posted a total return of 13.38% during the period on Investment
A Shares (before the deduction of sales charge),1 compared to a 7.38%
return for the Fund's benchmark, the Lipper Balanced Funds Average.2
Q. What economic or market factors affected the Fund's performance during
the period?
A. The period was characterized by low inflation and low interest rates, as
the Federal Reserve Board cut interest rates three times. Investors flocked
to shares of larger companies for safety and liquidity amid overseas
economic troubles that threatened to create a global financial crisis.
Shares of large companies significantly outperformed shares of small firms.
In our opinion, the fixed-income market benefited from lower interest
rates, but investors favored Treasury bonds as a "safe haven"; as a result,
those securities outperformed other sectors.
Q. Did the Fund's allocation to stocks and bonds change during the period?
A. The Fund began the period with 62.6% of its holdings in equities and
34.4% in fixed-income securities, leaving 4.1% in cash. We increased the
Fund's equity position to 64.0%, while increasing its stake in bonds to
34.7%; cash declined to 1.3%. The shift in part reflected attractive
valuations among stocks later in the period.*
Q. How did you position the Fund's equity holdings?
A. The Fund's equity portfolio remained primarily composed of large-company
stocks. We found attractive valuations among technology stocks during the
October correction, and those stocks helped boost the Fund's performance.
We also increased the Fund's exposure to the communications sector, which
also offered attractive growth opportunities. We reduced our holdings in
the energy sector due to weakness in oil prices.
Q. What about the Fund's bond holdings?
A. The fixed-income portion of the portfolio mirrors the portfolio of the
Quality Bond Fund. During the period, we emphasized high-quality
issues--primarily Treasury bonds and select high-quality corporate and
government agency issues. Such bonds performed well, as investors flocked
to them for safety from global economic problems.
Q. What is your outlook for the stock and bond markets during the next
several months and how will you position the Fund in that environment?
A. In the coming months, we will continue to overweight equities because we
believe stocks will outperform bonds. We will also continue to invest most
of the portfolio's assets in shares of large and mid-sized high-quality
growth companies trading at reasonable valuations. We also will invest a
significant percentage of the portfolio in high-quality Treasury and
corporate fixed-income securities to curb shareholders' risk. The Federal
Reserve Board could leave interest rates unchanged during the coming
months. However, investors may continue to fear the potential of a rate
hike to curb economic growth. Their concern may keep interest rates near
the high end of a range of perhaps 5.5% to 6.0% for long-term Treasury
issues. We will extend the Fund's average maturity as rates approach 6.0%
and will reduce it to a neutral position as rates approach 5%. We will also
look for opportunities to purchase high-quality corporate bonds at
attractive prices.
Q. What were the Fund's top five equity holdings as of January 31, 1999?
A. The Fund's top five equity holdings were Intel Corp. (3.0% of net
assets), Guidant Corp. (2.9%), Home Depot, Inc. (2.7%), MCI WorldCom, Inc.
(2.5%) and Freddie Mac (2.2%).
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Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
* The composition of the portfolio is subject to change.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
1 The six-month return, with the maximum sales charge of 4.50%, was 8.26%.
2 The Lipper Balanced Funds Average is comprised of funds that seek to
conserve principal by maintaining at all times a balanced portfolio of both
stocks and bonds. Typically, the stock/bond ratio ranges around 60%/40%.
7
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Fifth Third Mid Cap Fund
An interview with Steven E. Folker, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The total return for the Fund during the period was 3.22% on Investment
A Shares (before the deduction of sales charge),1 compared to a return of
9.63% for the S&P MidCap 400 Index2 and 6.97% for the Lipper Mid-Cap Funds
Average.3
Q. What economic or market conditions contributed to the Fund's
performance?
A. While mid-cap stocks did relatively well, shares of large growth
companies continued to significantly outperform shares of both small and
mid-size firms. Fears of a global recession and concerns about liquidity
may have led many investors to favor large-company shares over mid-cap
stocks.
Q. How did you manage the Fund in that environment?
A. We continued to invest the Fund in shares of high-quality, medium-sized
companies with above-average growth prospects trading at attractive
valuations. We found opportunities during the market correction in October
to buy shares of good companies at attractive prices. This approach led us
to overweight the technology sector, which rebounded sharply later in the
period.
Q. What stocks helped boost returns?
A. Strong performers included QLogic Corp. (2.8% of net assets),
Flextronics International Ltd. (3.9%) and Analog Devices, Inc. (3.7%) in
technology; STERIS Corp. (5.2%) and Sybron International Corp. (2.1%) in
health care; and Comair Holdings, Inc. (5.1%) in transportation.
Q. Did you avoid any sectors?
A. We avoided exposure in the utilities sector and remained underweighted
in basic materials, capital goods and energy, due to those sectors' high
sensitivity to economic fluctuations.
Q. What is your outlook for the stock market, and how will you manage the
Fund in that environment?
A. Low inflation and low interest rates could help boost the U.S. economy
and the stock market in the coming year. We expect gradual improvement in
mid-cap stocks. Our strategy will remain consistent. We will attempt to
identify and purchase shares of medium-sized companies that are undervalued
relative to their long-term growth prospects.
Q. What were the Fund's top five holdings as of January 31, 1999?
A. The Fund's top five holdings were STERIS Corp. (5.2% of net assets),
Comair Holdings, Inc. (5.1%), First Tennessee National Corp. (4.9%),
Century Telephone Enterprises, Inc. (4.7%) and Fiserv, Inc. (4.2%).*
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Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was -1.41%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Fund's performance is being measured against the Standard & Poor's
MidCap 400 Index to reflect the Fund's focus on the mid-cap sector of the
U.S. stock market. The index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Fifth Third Mid
Cap Fund does reflect the deduction of fees for these value-added services.
3 The Lipper Mid-Cap Funds Average is comprised of funds that seek to
invest primarily in companies with market capitalizations of less than $5
billion at the time of purchase.
8
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Fifth Third International Equity Fund
An interview with John Schmitz, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund returned -2.18% on Investment A Shares (before deduction of
sales charge),1 compared to a 2.17% return for the Morgan Stanley Capital
International EAFE Index.2
Q. How did foreign markets perform during the period?
A. Financial troubles in many overseas economies hampered the performance
of foreign stock markets during much of the period. The third quarter was
one of the worst three quarters on record for the Morgan Stanley Capital
International EAFE index. During that time, Asia's economic and financial
problems affected Latin America, Russia and Europe. Russia's decision to
default on its short-term debt was particularly troubling for the many
European banks with large Russian debt. Lower-than-expected earnings in
Europe caused the MSCI Europe Index to fall 30% from its July 20 peak. In
the wake of those losses, a powerful rally lifted the global equity markets
from October through mid-November. European markets recovered roughly half
of their August losses. The fourth quarter of 1998 was, however, plagued by
vicious cross-currents in the fixed-income and currency markets, including
an extremely sharp rise in the value of the Japanese yen during a one-week
period in the fourth quarter.
Q. How did you manage the Fund in that environment?
A. At the beginning of the period, we were troubled by high valuations for
many European equities and continued financial and economic weakness in
many areas of the globe. Thus, the Fund was slightly underweight in both
Asia and Europe during the third quarter, with cash close to our maximum
permitted levels. During the fourth quarter, we reduced the Fund's cash
position. We continued to underweight European markets, which are just
beginning to feel the effects of deflation in the form of falling exports
and lower Gross Domestic Product (GDP) growth estimates. We gradually
increased the Fund's investments in Asia, where equities remain very
inexpensive, currencies are strong, interest rates have dropped, and
corporate cost cutting is accelerating.
Q. What is your outlook for global markets and how will you manage the Fund
in that environment?
A. In general, we remain concerned about deteriorating economic
fundamentals abroad. We think corporate earnings could remain flat or even
decline in Europe, falling well short of analysts' expectations for 15%
earnings growth. Such earnings disappointments could dampen the performance
of European stocks. Meanwhile, the outlook for Asian and Japanese markets
in particular remains cloudy. We continue to visit various countries and
companies in search of a clearer picture, and we will act aggressively as
it emerges.
---------------------------------------------------------------------------
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
Foreign investing generally involves a greater degree of risk and
volatility than investing in the U.S. markets.
1 The six-month return, with the maximum sales charge of 4.50%, was -6.57%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower
2 The Fund's performance is measured against the Morgan Stanley Capital
International EAFE (Europe, Australasia and Far East) Index, an unmanaged
index generally representative of the foreign stock market. The Index does
not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services.
9
<PAGE>
Fifth Third Bond Fund for Income
An interview with Roberta Tucker, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund distributed $0.30 per share, and its net asset value decreased
from $12.19 to $12.18 (Investment A Shares) per share during the six months
ended January 31, 1999. The combination generated a total return of 4.15%
on Investment A Shares (before deduction of sales charge).1 That return
compared to a 5.00% total return for the Lehman Brothers Intermediate
Government/Corporate Bond Index2 and a 3.66% return for the Lipper
Short-Intermediate Investment Grade Bond Funds Average.3
Q. What were conditions in the bond market during the recent six-month
period?
A. The United States continued to enjoy strong economic growth and very low
inflation. However, the markets also reflected a global financial crisis
brought on by continued economic problems in Asia, Russia and Latin
America. In our opinion, investors worried that those problems would spread
to the United States and dampen domestic economic growth. As a result, the
Federal Reserve Board reduced short-term interest rates three times during
the period--once in September, and twice in October 1998 for a total
reduction of 75 basis points. Long-term Treasury bonds' prices rose,
bolstered by safety-conscious investors. Corporations were forced to offer
higher rates relative to Treasuries to attract capital; therefore, the
spread between yields on Treasury and corporate bonds increased.
Q. How did you manage the Fund in that environment?
A. The Fund's average maturity fluctuated during the period. As Treasury
yields fell in August, we increased the Fund's average maturity to a point
longer than that of its benchmark. But we took profits later in the period,
reducing the Fund's average maturity until it was neutral to its benchmark.
We maintained that neutral position for the rest of the period. The Fund
seeks to provide stable current income as well as an attractive total
return for shareholders. For that reason we maintained a significant stake
in high-quality corporate bonds, which deliver more income than Treasuries.
The Fund did not fully participate in the price gains that the Treasuries
delivered during the period. The Fund benefited from our extensive credit
research, which helped us identify high-quality corporate issues trading at
attractive prices. We maintained the Fund's high average credit quality,
which stood at AA1 at the end of January. That approach also benefited the
Fund as investors favored issues with very high credit quality.
Q. What is your outlook for the bond market, and how will you manage the
Fund in that environment?
A. We expect to see strong economic growth and strong consumer spending
during the first half of 1999. The Fed probably will not increase rates,
but investor concerns that it will do so could keep rates on long-term
Treasuries near the high end of a trading range of 5.0% to 6.0%. We will
attempt to maintain a neutral average maturity when rates are near 5% and
will extend the Fund's average maturity as rates approach 6.0%. The bond
market and spreads between yields in different sectors will continue to
fluctuate. We will continue to overweight corporate bonds in net assets in
order to provide shareholders with an attractive level of income. However,
we will purchase only select, high-quality issues in that sector to reduce
risk to shareholders.
---------------------------------------------------------------------------
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
1 The six-month return, with the maximum sales charge of 4.50%, was -0.50%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Fund's performance is measured against the Lehman Brothers
Intermediate Government/Corporate Bond Index, which represents the
performance of the bond market as a whole. The index is unmanaged and does
not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The performance of the
Fifth Third Bond Fund for Income does reflect the deduction of fees for
these value-added services.
3 The Lipper Short-Intermediate Investment Grade Bond Funds Average is
comprised of funds that seek to invest at least 65% of their assets in
investment-grade debt issues (rated in the top four grades) with
dollar-weighted average maturities of one to five years.
10
<PAGE>
Fifth Third Quality Bond Fund
An interview with Roberta Tucker, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund during the period posted a total return of 4.86% on Investment A
Shares (before deduction of sales charge).1 That return reflected an income
distribution of $0.24 per share and an increase in the Fund's net asset value
from $9.96 at the beginning of the period to $10.10 at the end of the period.
The Fund's benchmarks, the Lipper Intermediate Investment Grade Debt Funds
Average2 and the Lehman Brothers Aggregate Bond Index,3 returned 4.09% and
5.10%, respectively.
Q. What was the environment in the bond market during the recent period?
A. The United States continued to experience strong economic growth and low
inflation in the context of severe global economic problems. As the period
began, global markets were entering a financial crisis brought on by problems
in overseas markets such as Asia, Russia and Latin America. Investors worried
that those problems could spread to the United States and hurt our economy.
As a result, the Federal Reserve acted to reduce short-term interest rates
three times during the period--once in September, and twice in October
1998--for a total reduction of 75 basis points. Long-term Treasury bonds'
prices rose as a result.
Q. How did you position the Fund in that environment?
A. We anticipated early in the period that the global economic crisis would
cause investors to favor Treasury bonds; therefore, we increased the Fund's
weighting in Treasuries. That strategy initially benefited the Fund but hurt
performance slightly when corporate bonds rebounded during November and
January. We increased the Fund's investment in corporate and agency issues
later in the period to take advantage of those securities' attractive yields.
The Fund's average maturity fluctuated during the period, based on conditions
in the bond market. In August, the Fund benefited from an average maturity
longer than that of its index, which boosted the portfolio's returns. Later
in the period, we reduced the Fund's average maturity to lock in gains and
reduce shareholders' risk.
Q. What is your outlook for the bond market, and how will you manage the Fund
in that environment?
A. We believe it is likely we could see strong economic growth and strong
consumer spending during the first half of 1999. The Fed may remain neutral
regarding interest rates. In our opinion, however, investor concern about the
potential for a rate hike to prevent inflation may keep interest rates near
the high end of a range of 5.0% to 6.0% for long-term Treasury issues. The
bond market and spreads between yields in its different sectors could
continue to fluctuate. We may see pressure on corporate profits in the third
quarter, which could lead to lower interest rates. We will seek to maintain
neutral weighting in Treasury bonds, and we will look for opportunities to
purchase high-quality corporate bonds at attractive prices. We will attempt
to increase the Fund's average maturity as rates approach 6.0%, and we will
reduce it to a neutral position as rates approach 5.0%.
-----------------------------------------------------------------------------
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
1 The six-month return, with the maximum sales charge of 4.50%, was 0.13%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Lipper Intermediate Investment Grade Debt Funds Average is comprised
of funds that seek to invest at least 65% of their assets in investment-grade
debt issues (rated in the top four grades) with dollar-weighted average
maturities of five to ten years.
3 The Fund's performance is measured against the Lehman Brothers Aggregate
Bond Index, an unmanaged index generally representative of the performance of
the bond market as a whole, and the Lipper Intermediate Investment Grade Debt
Funds Average, representative of the average of the total returns reported by
all of the mutual funds designated by Lipper Analytical Services, Inc. as
falling into this category. The Lehman Brothers Aggregate Bond Index does not
reflect the deduction of fees associated with a mutual fund. The Lipper
Intermediate Investment Grade Debt Funds Average and the Fund's performance
reflect the deduction of fees for these value-added services.
11
<PAGE>
Fifth Third U.S. Government Securities Fund
An interview with Roberta Tucker, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund, during the period, delivered a total return of 4.33% on
Investment A Shares (before deduction of sales charge),1 which reflected an
income distribution of $0.25 per share and an increase in the Fund's net
asset value from $9.82 per share at the beginning of the period to $10.01
per share at the end of the period. The Fund's benchmarks, the Lehman
Brothers Intermediate Government Bond Index2 and the Lipper
Short-Intermediate Government Bond Funds Average,3 returned 4.99% and
3.83%, respectively.
Q. What was the environment in the bond market during the recent period?
A. The United States continued to enjoy strong economic growth and very low
inflation. In addition, the markets reflected a financial crisis in
overseas markets such as Asia, Russia and Latin America. Investors were
concerned that financial problems in those countries would spread to the
United States and hurt our economy. As a result, the Federal Reserve Board
acted to reduce short-term interest rates three times during the
period--once in September, and twice in October 1998--for a total reduction
of 75 basis points. Meanwhile, investors favored the safety of Treasury
securities, pushing those bonds' prices higher and increasing the gap
between yields on Treasuries and lower-quality issues.
Q. How did you position the Fund in that environment?
A. The Fund began the period with a neutral average maturity, which we then
extended to take advantage of the rally in Treasuries. Subsequently, we
reverted to a neutral average maturity and maintained it throughout the
rest of the period. We purchased select government agency issues in
November and December. That move boosted the Fund's income, taking
advantage of those issues' growing yield advantage relative to Treasuries.
Toward the end of the period, half of the Fund's assets was in government
agency bonds--a relatively high percentage for the Fund. Recently, the
yield gap between Treasuries and agency securities has narrowed, so we may
take some profits in the agency sector.
Q. What is your outlook for the bond market going forward?
A. We expect to see strong economic growth and strong consumer spending
during the first half of 1999. The Fed probably will not increase rates,
but the economy's continued growth might raise fears of such a rate hike.
Thus, interest rates on long-term Treasury issues will likely stay near the
high end of a range of 5.0% to 6.0%. The bond market in general and gaps
between yields in its different sectors should continue to fluctuate. In
particular, we think yields on agency securities may increase relative to
Treasury yields once again. That prospect encourages us to reduce the
Fund's weighting in that sector.
---------------------------------------------------------------------------
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
1 The six-month return, with the maximum sales charge of 4.50%, was -0.34%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Fund's performance is measured against the Lehman Brothers
Intermediate Government Bond Index, which is generally representative of
the total return of intermediate-term U.S. Government securities. The index
is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Fifth Third U.S. Government Securities Fund does reflect
the deduction of fees for these value-added services.
3 The Lipper Short-Intermediate Government Bond Funds Average is comprised
of funds that seek to invest at least 65% of their assets in securities
issued or guaranteed by the U.S. Government, its agencies, or its
instrumentalities, with dollar-weighted average maturities of one to five
years.
12
<PAGE>
Fifth Third Municipal Bond Fund+
An interview with Kim Burford, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund distributed $0.22 per share during the period. Its net asset
value increased from $12.24 per share to $12.36 per share, for a total
return of 4.58% on Investment A Shares (before deduction of sales charge).1
That return compares to a 4.17% return for the Lipper Intermediate
Municipal Debt Funds Average2 and a 4.59% return for the Lehman Brothers
Municipal Bond Index.3
Q. How did the municipal bond market perform during the period?
A. In our opinion, bonds performed generally well during the period, due to
falling interest rates, low inflation and increased demand for bonds in the
wake of continued global economic concerns. However, Treasury bonds
outperformed municipal bonds during the period. Municipals typically do not
perform as well in the type of declining interest rate environments we saw
during the prior six months. Moreover, investors--especially foreign
investors--favored Treasury bonds in the wake of continued economic
problems in Russia, Latin America and Asia. A large supply of municipal
issues in 1998 also contributed to municipal bonds' lack of performance. In
all, $284.2 billion in new municipal issues came into the market during
1998, in large part because municipalities refinanced their existing debt
in the low interest rate environment. This heavy supply caused municipal
bond yields to reach historically high levels as a percentage of Treasury
yields. At times, yields on municipal bonds actually rivaled those of
Treasuries. Those relatively high yields made municipal bonds attractive
investments during the period.
Q. How did you position the Fund in that environment?
A. We lengthened the Fund's average maturity during the period to take
advantage of the steep yield curve. That approach benefited the Fund, as
bonds with relatively long maturities outperformed short-term bonds during
the period. The Fund's average maturity began the period at 8.06 years and
finished the period at 8.94 years, comparable to the Fund's benchmark. The
Fund held 60.2% of its assets in revenue backed bonds and 37.0% in general
obligation bonds, with the remainder in cash and cash equivalents.*
Q. What changes did you make to the Fund's credit quality during the
period?
A. We continued to favor issues with high credit quality. That strategy
worked well during the period, as investors favored bonds with good credit
quality, reflecting the fact that the extra yields on lower-rated bonds
were not enough to justify their additional risk. We slightly increased the
percentage of the Fund's assets in AAA-rated bonds, from 59% to 63%, while
decreasing assets in AA-rated securities from 34% to 30%.
Q. What is your outlook for the economy and the municipal bond market going
forward?
A. Overall, we expect to see a very positive environment for municipal
bonds, as credit upgrades outpace downgrades and local governments enjoy
good cash flow. We expect the economy to grow at a modest pace, with low
inflation and interest rates declining later in the year.
Q. What will your strategy be in that environment?
A. We will seek to maintain an average maturity longer than that of the
Fund's benchmark to take advantage of any decline in interest rates. We
also will continue to focus on high-quality issues and will only consider
lowering the Fund's average credit quality if yields on lower-quality bonds
increase substantially. Our primary objective is to provide shareholders
with stable levels of income while seeking opportunities to boost the
Fund's yield. Therefore, we will continue to seek out opportunities to
protect and increase the Fund's income to shareholders while structuring
the portfolio to take advantage of the current interest rate environment.
---------------------------------------------------------------------------
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
+Some or all of the income may be subject to the federal alternative
minimum tax and to certain state and local taxes.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was -0.15%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Lipper Intermediate Municipal Debt Funds Average is comprised of
funds that seek to invest primarily in municipal debt issues with
dollar-weighted average maturities of five to ten years.
3 The Lehman Brothers Municipal Bond Index is generally representative of
municipal bonds with intermediate maturities. The index is unmanaged and
does not reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the
Fifth Third Municipal Bond Fund does reflect the deduction of fees for
these value-added services.
13
<PAGE>
Fifth Third Ohio Tax Bond Fund+
An interview with Kim Burford, portfolio manager.
Q. How did the Fund perform during the six-month period ended January 31,
1999?
A. The Fund posted a total return of 4.64% on Investment A Shares (before
deduction of sales charge)1 during the period, which reflected an increase
in the Fund's net asset value per share, from $10.29 at the beginning of
the period to $10.50 at the end of the period, and an income distribution
per share of $0.20. The Fund's benchmarks, the Lipper Intermediate
Municipal Debt Funds Average, the Lehman Brothers 7-Year Municipal Bond
Index and the Lehman Brothers Municipal Bond Index,2 returned 4.25%, 4.59%
and 4.66%, respectively.
Q. How did the Ohio municipal bond market perform during the period?
A. The performance of the Ohio municipal bond market was similar to that of
the overall municipal bond market. The uncertainty in overseas financial
markets caused many investors, in our opinion, to seek safety and liquidity
in Treasuries, pushing yields down and prices up on those issues. Many
foreign investors bought Treasury securities during the period in response
to problems in their own countries' economies. As a result, Treasuries
significantly outperformed municipal bonds during the period. While that
trend caused municipal bonds to underperform Treasuries, it also made their
prices more stable.
Q. How did you manage the Fund in that environment?
A. The Fund began the period with an average maturity of 7.87 years and
ended the period with an average maturity of 7.84 years. The relatively
long average maturity of the Fund reflects our belief that interest rates
will continue to decline. During the period, we adjusted the Fund's average
maturity to take advantage of opportunities as they presented themselves.
For example, we lengthened the Fund's average maturity to as long as 7.8
years in August as yields on longer-term bonds became attractive. We kept
the Fund's credit quality high, because yields on lower-quality issues did
not justify their additional risk.
Q. What sectors of the muni market was the Fund invested in?
A. General obligation bonds made up the largest percentage of the Fund's
investments, with 34% of its assets. Other holdings included revenue-backed
bonds, such as education bonds (22% of assets), water and sewer bonds
(14%), transportation bonds (6%), and hospital bonds (5%). We slightly
increased the Fund's exposure to hospital debt during the period as
opportunities presented themselves in that sector.*
Q. What is your outlook for the Ohio municipal bond market going forward,
and how will you manage the Fund in that environment?
A. We expect Ohio's economy to remain healthy. The low interest rate and
low inflation environment, as well as Ohio's stable credit rating, bodes
well for Ohio municipal bonds in the coming months. Likewise, Ohio's high
marginal tax rate supports demand for municipal issues. Going forward, we
may lengthen the Fund's average maturity slightly to take advantage of
further declines in interest rates. We also will continue to focus on
high-quality issues and will consider buying lower-rated bonds only if they
offer yields that justify their higher risk. As always, we will look for
opportunities to protect and increase the Fund's income.
---------------------------------------------------------------------------
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
+The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
Investing in a regional fund may involve risk, since the companies are
located in the same geographical area.
*The composition of the portfolio is subject to change.
1 The six-month return, with the maximum sales charge of 4.50%, was -0.05%.
For the same period, the total return set forth may reflect the waiver of a
portion of the Fund's advisory or administrative service fees. In such
instances, and without waiver of fees, total return would have been lower.
2 The Fund's performance is measured against the Lehman Brothers 7-Year
Municipal Bond Index, the Lehman Brothers Municipal Bond Index and the
Lipper Intermediate Municipal Debt Funds Average. The Lehman Brothers
indices are unmanaged indices generally representative of the
intermediate-term municipal bond market. 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 Analytical
Services, Inc. as falling into that category. The Lehman Brothers 7-Year
Municipal Bond Index and the Lehman Brothers Municipal Bond Index do not
reflect the deduction of fees associated with a mutual fund. The Lipper
Intermediate Municipal Debt Funds Average and the Fund's performance do
reflect the deduction of fees for these value-added services.
14
<PAGE>
Fifth Third Quality Growth Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- -------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------
Common Stocks -- 96.3%
Banking -- 8.0%
730,000 Bank of New York Co., Inc. $ 25,915
85,000 First Tennessee National Corp. 3,108
270,000 Mellon Bank Corp. 18,090
75,000 Regions Financial Corp. 2,878
75,000 SouthTrust Corp. 2,784
-----------
Total 52,775
-----------
Beverages -- 1.7%
70,000 Coca-Cola Co. 4,581
170,000 PepsiCo, Inc. 6,640
-----------
Total 11,221
-----------
Business Services -- 2.4%
170,000 Cintas Corp. (c) 12,931
200,000 Service Corp. International 3,175
-----------
Total 16,106
-----------
Computer Software &
Services -- 5.9%
105,000 Computer Sciences Corp. (b) 7,199
120,000 Microsoft Corp. (b) 21,000
200,000 Oracle Corp. (b) 11,075
-----------
Total 39,274
-----------
Consumer Products -- 1.9%
170,000 Newell Co. (c) 7,066
62,000 Procter & Gamble Co. 5,634
-----------
Total 12,700
-----------
Electrical Equipment -- 3.0%
190,000 General Electric Co. 19,926
-----------
Electronics -- 16.4%
210,000 Cisco Systems, Inc. (b) 23,428
265,000 Intel Corp. 37,349
130,000 Lucent Technologies, Inc. 14,633
180,000 Tellabs, Inc. (b) 15,435
180,000 Texas Instruments, Inc. 17,798
-----------
Total 108,643
-----------
Financial Services -- 4.3%
460,000 Freddie Mac 28,520
-----------
Healthcare -- 5.2%
100,000 Baxter International, Inc. 7,094
460,000 Guidant Corp. 27,111
-----------
Total 34,205
-----------
Insurance -- 5.5%
185,000 Allstate Corp. 6,949
137,000 Cincinnati Financial Corp. 4,512
250,000 Marsh & McLennan Cos., Inc. 15,720
250,000 MGIC Investment Corp. 9,156
-----------
Total 36,337
-----------
Manufacturing -- 7.0%
315,000 Illinois Tool Works, Inc. (c) 18,998
300,000 Tyco International Ltd. 23,119
140,000 Zebra Technologies Corp.,
Class A (b) 4,226
-----------
Total 46,343
-----------
Media/Publishing -- 3.5%
295,000 Interpublic Group of Cos., Inc. 23,342
-----------
Medical Distribution -- 2.8%
255,000 Cardinal Health, Inc. (c) 18,854
-----------
Office Equipment &
Supplies -- 2.6%
110,000 Avery Dennison Corp. 5,438
170,000 Pitney Bowes, Inc. 11,698
-----------
Total 17,136
-----------
Oil & Gas -- 2.9%
45,000 Chevron Corp. 3,364
110,000 Mobil Corp. 9,645
137,000 Schlumberger Ltd. 6,525
-----------
Total 19,534
-----------
Pharmaceuticals -- 6.8%
170,000 American Home Products Corp. 9,977
52,000 Bristol-Myers Squibb Co. 6,666
105,000 Pfizer, Inc. 13,506
94,000 Schering-Plough Corp. 5,123
132,300 Warner-Lambert, Inc. 9,550
-----------
Total 44,822
-----------
Retail -- 10.6%
560,000 Home Depot, Inc. 33,810
330,000 Lowe's Cos., Inc. 19,243
200,000 Wal-Mart Stores, Inc. 17,200
-----------
Total 70,253
-----------
Telecommunications -- 4.1%
340,000 MCI WorldCom, Inc. (b) 27,115
-----------
Transportation -- 1.7%
300,000 Comair Holdings, Inc. 11,006
-----------
Total Common Stocks 638,112
-----------
Repurchase Agreements -- 1.5%
$9,689 Warburg/Dillion, 4.70%, dated
1/31/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $9,896. 9,689
-----------
Total Repurchase Agreements 9,689
-----------
-Continued-
15
<PAGE>
Fifth Third Quality Growth Fund
- -------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------- ----------
Short Term Securities Purchased with
Collateral -- 7.0%
Commercial Paper -- 1.1%
279 BellSouth Telecommunications,
4.85%, 2/4/99 $ 278
433 BellSouth Telecommunications,
4.75%, 2/10/99 432
337 Coca-Cola Co., 4.77%, 2/16/99 336
1,046 Coca-Cola Co., 4.78%, 2/16/99 1,044
625 DuPont De Nemours & Co., 4.76%,
2/2/99 624
1,610 Harvard University, 4.82%, 2/1/99 1,608
1,400 Petrofina Delaware, Inc., 4.85%,
2/9/99 1,395
242 U.B.S. Finance Delaware, 4.83%,
2/9/99 242
523 Xerox Corp., 4.80%, 2/8/99 521
1,000 Xerox Corp., 4.82%, 2/1/99 1,000
-----------
Total 7,480
-----------
Corporate Bond -- 2.4%
5,829 GMAC, Floating Rate Note, 5.21%,
2/25/00 5,823
10,047 Goldman Sachs, Floating Rate Note,
5.00%, 7/24/00 10,022
-----------
Total 15,845
-----------
Repurchase Agreements -- 3.5%
23,084 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value of
23,681. 23,084
-----------
Total Short Term Securities
Purchased with Collateral 46,409
-----------
Total Investments
(Cost $443,228) (a) -- 104.8% 694,210
Liabilities in excess of other
assets -- (4.8)% (31,947)
-----------
TOTAL NET ASSETS -- 100.0% $662,263
-----------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $250,982, which is composed of $261,289 appreciation and
$10,307 depreciation at January 31, 1999.
(b) Non-income producing security.
(c) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statements)
16
<PAGE>
Fifth Third Equity Income Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- ------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- ------------------------------------------------------------------------------
Common Stock -- 99.4%
Banking -- 18.6%
210,000 Bank of New York Co., Inc. $ 7,456
117,400 First Tennessee National Corp. (b) 4,292
99,200 Mellon Bank Corp. 6,647
170,000 SouthTrust Corp. 6,311
172,500 Wells Fargo & Co. 6,027
---------
Total 30,733
---------
Business Services -- 0.5%
54,000 Service Corp. International 857
---------
Chemicals -- 3.2%
365,000 RPM, Inc. 5,224
---------
Conglomerates -- 2.1%
46,000 Textron, Inc. 3,424
---------
Electrical Equipment -- 11.7%
65,000 Emerson Electric Co. 3,782
40,000 General Electric Co. 4,195
111,000 Hubbell, Inc., Class B 4,065
160,000 NIPSCO Industries, Inc. 4,341
129,000 TECO Energy, Inc. 2,999
---------
Total 19,382
---------
Financial Services -- 4.8%
78,000 A.G. Edwards, Inc. 2,642
72,000 Fannie Mae 5,247
---------
Total 7,889
---------
Food -- 7.7%
45,500 Bestfoods 2,289
62,500 ConAgra, Inc. 2,031
82,000 H.J. Heinz Co. 4,618
140,000 SYSCO Corp. 3,815
---------
Total 12,753
---------
Insurance -- 6.4%
12,000 American General Corp. 856
36,000 Cincinnati Financial Corp. 1,186
84,000 Marsh & McLennan Co., Inc. 5,281
85,300 SAFECO Corp. (b) 3,316
---------
Total 10,639
---------
Manufacturing -- 1.8%
28,500 Federal Signal Corp. 757
52,700 Newell Co. (b) 2,190
---------
Total 2,947
---------
Office Equipment &
Supplies -- 7.7%
118,000 Avery Dennison Corp. 5,834
100,000 Pitney Bowes, Inc. 6,881
---------
Total 12,715
---------
Oil & Gas -- 6.9%
65,000 Chevron Corp. 4,859
75,000 Mobil Corp. 6,576
---------
Total 11,435
---------
Pharmaceuticals -- 9.2%
41,500 Abbott Laboratories 1,927
38,900 Johnson & Johnson 3,307
20,000 Merck & Co., Inc. 2,935
80,000 Schering-Plough Corp. 4,360
37,500 Warner-Lambert, Inc. 2,707
---------
Total 15,236
---------
Retail -- 1.3%
56,500 J.C. Penney Co., Inc. 2,214
---------
Telecommunications -- 11.3%
102,500 ALLTEL Corp. 6,618
105,000 Ameritech Corp. 6,838
88,000 Bell Atlantic Corp. 5,280
---------
Total 18,736
---------
Transportation -- 4.0%
177,000 GATX Corp. 6,582
---------
Utilities/Electric -- 1.7%
90,000 Cinergy Corp. 2,818
---------
Utilities/Natural Gas -- 0.5%
28,390 LG&E Energy Corp. 749
---------
Total Common Stock 164,333
---------
Repurchase Agreement -- 0.4%
$627 Warburg/Dillion, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $641. 627
---------
Total Repurchase Agreement 627
---------
Short Term Securities Purchased with
Collateral -- 3.4%
Commercial Paper -- 0.1%
137 Harvard University, 4.82%, 2/1/99 137
49 Xerox Corp., 4.82%, 2/1/99 49
---------
Total 186
---------
Corporate Bond -- 2.0%
1,416 GMAC, Floating Rate Note, 5.21%,
2/25/00 1,414
1,984 Goldman Sachs, Floating Rate Note,
5.00%, 7/24/00 1,979
---------
Total 3,393
---------
-Continued-
17
<PAGE>
Fifth Third Equity Income Fund
- ----------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- ----------------------------------------------------------------------------
Repurchase Agreement -- 1.3%
$ 2,092 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value of
$2,146. $ 2,092
--------
Total Short Term Securities
Purchased with Collateral 5,671
--------
Total Investments
(Cost $121,628) (a)-- 103.2% 170,631
--------
Liabilities in excess of other
assets -- (3.2)% (5,346)
--------
TOTAL NET ASSETS -- 100.0% $165,285
--------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $49,003, which is composed of $54,107 appreciation and
$5,104 depreciation at January 31, 1999.
(b) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statements)
18
<PAGE>
Fifth Third Cardinal Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- -------------------------------------------------------------------------------
Security Market
Shares Description Value
- -------------------------------------------------------------------------------
Common Stocks -- 99.2%
Banks -- 3.8%
30,000 AmSouth Bancorp. $ 1,322
30,000 Bank of New York Co., Inc. 1,065
80,000 Bank One Corp. 4,190
25,000 Citigroup, Inc. 1,402
66,000 Huntington Bancshares, Inc. 2,054
15,000 Mellon Bank Corp. 1,005
---------
Total 11,038
---------
Beverages -- 3.3%
100,000 Coca-Cola Co. 6,543
75,000 PepsiCo, Inc. 2,930
---------
Total 9,473
---------
Business Services -- 0.5%
100,000 Service Corp. International 1,588
---------
Chemicals -- 0.9%
51,400 Dupont (E.I.) de Nemours & Co. 2,631
---------
Computer Software &
Services -- 6.8%
30,000 Computer Sciences Corp. (b) 2,057
90,000 Microsoft Corp. (b) 15,750
35,000 Oracle Corp. (b) 1,938
---------
Total 19,745
---------
Computer Systems &
Equipment -- 8.4%
52,000 Cisco Systems, Inc. (b) 5,800
100,000 Compaq Computer Corp. 4,763
52,000 Dell Computer Corp. (b) 5,200
40,000 Hewlett-Packard Co. 3,135
30,000 IBM Corp. 5,498
---------
Total 24,396
---------
Consumer Products -- 5.3%
35,000 Clorox Co. 4,379
50,000 Gillette Co. 2,938
30,000 Kimberly-Clark Corp. 1,494
70,000 Procter & Gamble Co. 6,362
---------
Total 15,173
---------
Electrical Equipment -- 3.8%
105,000 General Electric Co. 11,012
---------
Electronics -- 10.5%
65,000 Applied Materials, Inc. (b) 4,107
67,000 Intel Corp. 9,442
10,000 KLA-Tencor Corp. (b) 578
80,000 Lucent Technologies, Inc. 9,004
20,000 PRI Automation, Inc. (b) 710
50,000 Tellabs, Inc. (b) 4,288
20,000 Texas Instruments, Inc. 1,978
---------
Total 30,107
---------
Entertainment & Leisure -- 1.1%
100,000 The Walt Disney Co. 3,300
Financial Services -- 3.3%
150,000 Charter One Financial, Inc. 4,200
42,500 Fannie Mae 3,097
60,000 T. Rowe Price Associates, Inc. 2,194
---------
Total 9,491
---------
Healthcare -- 5.5%
60,000 Biomet, Inc. 2,198
50,000 Guidant Corp. 2,947
60,000 Johnson & Johnson 5,100
70,000 Medtronic, Inc. 5,578
---------
Total 15,823
---------
Insurance -- 7.3%
30,000 Allstate Corp. 1,127
45,000 American International Group, Inc. 4,632
100,000 Cincinnati Financial Corp. 3,294
100,000 First Tennessee National Corp. 3,656
135,000 Marsh & McLennan Cos., Inc. 8,488
---------
Total 21,197
---------
Manufacturing -- 4.1%
80,000 Textron, Inc. 5,955
75,000 Tyco International, Ltd. 5,780
---------
Total 11,735
---------
Media/Publishing -- 3.4%
50,000 Gannett Co., Inc. 3,291
80,000 New York Times Co., Class A 2,745
60,000 Tribune Co. 3,836
---------
Total 9,872
---------
Medical Distribution -- 1.4%
53,000 Cardinal Health, Inc. 3,919
---------
Oil & Gas Producers &
Services -- 5.3%
75,000 Mobil Corp. 6,577
30,000 Royal Dutch Petroleum Co. 1,202
40,000 Schlumberger, Ltd. 1,905
35,000 Texaco, Inc. 1,658
120,000 Williams Cos., Inc. 3,960
---------
Total 15,302
---------
Pharmaceuticals -- 9.2%
75,000 American Home Products Corp. 4,402
25,000 Amgen, Inc. (b) 3,195
50,000 Merck & Co., Inc. 7,337
50,000 Pfizer, Inc. 6,430
50,000 Schering-Plough Corp. 2,725
30,000 Warner-Lambert Co. 2,166
---------
Total 26,255
---------
- continued -
19
<PAGE>
Fifth Third Cardinal Fund
- ----------------------------------------------------------------------------
Security Market
Shares Description Value
- ----------------------------------------------------------------------------
Restaurants -- 0.8%
30,000 McDonald's Corp. $ 2,364
--------
Retail -- 4.3%
60,000 Kohl's Corp. (b) 4,065
70,000 Lowe's Cos., Inc. 4,082
50,000 Wal-Mart Stores, Inc. 4,300
--------
Total 12,447
--------
Telecommunications -- 8.3%
50,000 AirTouch Communications, Inc. (b) 4,828
50,000 GTE Corp. 3,375
133,438 MCI WorldCom, Inc. (b) 10,642
30,000 Qwest Communications
International, Inc. (b) 1,798
40,000 Sprint Corp. (b) 3,355
--------
Total 23,998
--------
Tobacco Products -- 1.2%
75,000 Philip Morris Cos., Inc. 3,525
--------
Transportation -- 0.7%
25,000 FDX Corp. (b) 2,042
--------
Total Common Stocks 286,433
--------
Total Investments
(Cost $135,778) (a) -- 99.2% 286,433
--------
Other assets in excess of
liabilities -- 0.8% 2,366
--------
TOTAL NET ASSETS -- 100.0% $288,799
--------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $150,655, which is composed of $153,391 appreciation and
$2,736 depreciation at January 31, 1999.
(b) Non-income producing security.
(See Notes which are an integral part of the Financial Statements)
20
<PAGE>
Fifth Third Pinnacle Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- -------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------- -----------
Common Stocks -- 95.8%
Banking -- 5.7%
10,542 First Midwest Bancorp., Inc. $ 383
19,300 Firstar Corp. 1,702
20,550 Providian Financial Corp. 2,072
Total 4,157
Chemicals -- 2.4%
36,100 Monsanto Co. 1,717
Computer Software &
Services -- 5.1%
21,200 Ceridian Corp. (b) 1,683
11,400 Microsoft Corp. (b) 1,995
-----------
Total 3,678
-----------
Computer Systems &
Equipment -- 14.6%
16,050 Cisco Systems, Inc. (b) 1,791
18,100 EMC Corp. (b) 1,970
13,700 Intel Corp. 1,931
15,300 Lucent Technologies, Inc. 1,722
19,950 Tellabs, Inc. (b) 1,711
46,700 Unisys Corp. (b) 1,547
-----------
Total 10,672
-----------
Consumer Durables -- 2.5%
55,800 Masco Corp. 1,803
-----------
Consumer Products -- 3.7%
16,800 Colgate-Palmolive Co. 1,352
23,900 Quaker Oats Co. 1,329
-----------
Total 2,681
-----------
Consumer Services -- 2.3%
33,192 Waste Management, Inc. 1,658
-----------
Electrical Equipment -- 2.4%
16,300 General Electric Co. 1,709
-----------
Financial Services -- 2.2%
21,700 Fannie Mae 1,581
-----------
Food Processing -- 2.2%
48,300 ConAgra, Inc. 1,570
-----------
Healthcare -- 2.6%
32,000 Guidant Corp. 1,886
-----------
Insurance -- 12.9%
17,375 American International Group, Inc. 1,788
19,200 CIGNA Corp. 1,582
43,600 Conseco, Inc. 1,349
24,200 Marsh & McLennan Cos., Inc. 1,522
27,300 UNUM Corp. 1,650
21,000 WellPoint Health Networks, Inc. (b) 1,571
-----------
Total 9,462
-----------
Manufacturing -- 2.3%
22,000 Tyco International Ltd. (c) 1,695
-----------
Medical Distribution -- 2.3%
22,900 Cardinal Health, Inc. 1,693
-----------
Oil & Gas -- 2.0%
16,900 Mobil Corp. 1,482
-----------
Pharmaceuticals -- 9.6%
14,000 Amgen, Inc. (b) 1,788
13,400 Bristol-Myers Squibb Co. 1,718
31,000 Schering-Plough Corp. 1,690
24,500 Warner-Lambert, Inc. 1,769
-----------
Total 6,965
-----------
Printing & Publishing -- 2.5%
28,700 Time Warner, Inc. 1,794
-----------
Retail -- 9.2%
31,700 CVS Corp. 1,736
26,600 Home Depot, Inc. 1,606
28,200 Kroger Co. (b) 1,790
18,200 Wal-Mart Stores, Inc. 1,565
-----------
Total 6,697
-----------
Telecommunications -- 7.2%
20,500 AirTouch Communications, Inc. (b) 1,980
33,300 BellSouth Corp. 1,486
22,500 MCI WorldCom, Inc. (b) 1,794
-----------
Total 5,260
-----------
Transportation -- 2.1%
55,700 Southwest Airlines Co. 1,497
-----------
Total Common Stocks 69,657
-----------
-Continued-
21
<PAGE>
Fifth Third Pinnacle Fund
- -------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------- -----------
Repurchase Agreement -- 7.6%
$ 5,527 Warburg/Dillion, 4.70%, dated
1/31/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $5,645. $ 5,527
-----------
Total Repurchase Agreement 5,527
-----------
Short Term Securities Purchased with
Collateral -- 1.5%
Commercial Paper -- 0.3%
64 BellSouth Telecommunications,
4.85%, 2/4/99 64
9 Harvard University, 4.82%, 2/1/99 9
50 Petrofina Delaware, Inc., 4.85%,
2/9/99 50
128 Xerox Corp., 4.80%, 2/8/99 127
-----------
Total 250
-----------
Corporate Bond -- 1.0%
684 Goldman Sachs, Floating Rate Note,
5.00%, 7/24/00 682
Repurchase Agreement -- 0.2%
$ 155 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value of $159. $ 155
-----------
Total Short Term Securities
Purchased with Collateral 1,087
-----------
Total Investments
(Cost $55,595) (a) -- 104.9% 76,271
-----------
Liabilities in excess of other
assets -- (4.9)% (3,568)
-----------
TOTAL NET ASSETS -- 100.0% $ 72,703
-----------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $20,676 which is composed of $20,950 appreciation
and $274 depreciation at January 31, 1999.
(b) Non-income producing.
(c) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statements)
22
<PAGE>
Fifth Third Balanced Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- ------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- ------------------------------------------------------------------------
Common Stocks -- 64.0%
Banking -- 5.4%
117,000 Bank of New York Co., Inc. $ 4,155
70,000 First Tennessee National Corp. 2,559
60,000 Mellon Bank Corp. 4,020
17,000 Regions Financial Corp. 652
18,000 Southtrust Corp. 668
----------
Total 12,054
----------
Beverages -- 1.0%
17,000 Coca-Cola Co. 1,112
30,000 PepsiCo, Inc. 1,172
----------
Total 2,284
----------
Business Services -- 2.1%
50,000 Boron, LePore & Associates, Inc. (b) 1,719
25,000 Cintas Corp. (c) 1,901
12,000 Fastenal Co. (c) 463
40,500 Service Corp. International 643
----------
Total 4,726
----------
Computer Software &
Services -- 4.9%
23,000 Computer Sciences Corp. 1,577
50,000 Fiserv, Inc. (b) (c) 2,447
27,000 Microsoft Corp. (b) 4,725
40,000 Oracle Corp. (b) 2,215
----------
Total 10,964
----------
Consumer Products -- 1.1%
32,000 Newell Co. (c) 1,330
11,000 Procter & Gamble Co. 1,000
----------
Total 2,330
----------
Electrical Equipment -- 1.3%
27,500 General Electric Co. 2,884
----------
Electronics -- 11.2%
30,000 Analog Devices, Inc. (b) 893
5,000 Applied Materials, Inc. (b) 316
102,000 Artesyn Technologies, Inc. (b) 1,645
35,000 Cisco Systems, Inc. (b) 3,904
30,000 Flextronics International Ltd. (b) (c) 1,271
47,000 Intel Corp. 6,623
29,000 Lucent Technologies, Inc. 3,264
20,000 Microchip Technology, Inc. (b) 578
9,000 QLogic Corp. (b) 1,241
40,000 Tellabs, Inc. (b) 3,430
15,000 Texas Instruments, Inc. 1,483
----------
Total 24,648
----------
Financial Services -- 3.8%
19,000 A.G. Edwards, Inc. 644
77,000 Freddie Mac 4,774
80,000 T. Rowe Price Associates, Inc. 2,925
----------
Total 8,343
----------
General Building
Contractors -- 0.5%
87,500 Clayton Homes, Inc. (c) 1,203
----------
Healthcare -- 5.8%
22,000 Baxter International, Inc. 1,561
110,000 Guidant Corp. 6,482
60,000 HCR Manor Care, Inc. (b) 1,605
20,000 Respironics, Inc. (b) 308
70,000 STERIS Corp. (b) (c) 2,109
15,000 Universal Health Services, Inc. (b) 671
----------
Total 12,736
----------
Insurance -- 3.1%
25,000 Allstate Corp. 939
24,000 Cincinnati Financial Corp. 791
60,000 Marsh & McLennan Cos., Inc. 3,772
40,000 MGIC Investment Corp. 1,465
----------
Total 6,967
----------
Manufacturing -- 3.5%
38,000 Illinois Tool Works, Inc. 2,292
10,000 OM Group, Inc. 315
54,000 Tyco International Ltd. 4,161
35,000 Zebra Technologies Corp., Class A (b) 1,057
----------
Total 7,825
----------
Media/Publishing -- 1.2%
34,000 Interpublic Group of Cos., Inc. 2,690
----------
Medical Distribution -- 1.5%
49,000 Bergen Brunswig Corp. 1,372
27,000 Cardinal Health, Inc. (c) 1,996
----------
Total 3,368
----------
Office Equipment &
Supplies -- 1.0%
16,000 Avery Dennison Corp. 791
22,000 Pitney Bowes, Inc. 1,514
----------
Total 2,305
----------
Oil & Gas -- 1.6%
8,000 Chevron Corp. 598
40,000 Global Marine, Inc. (b) 333
20,000 Mobil Corp. 1,753
17,000 Schlumberger Ltd. 810
----------
Total 3,494
----------
-Continued-
23
<PAGE>
Fifth Third International Equity Fund
- --------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------------------------------------------------------------------------
Pharmaceuticals -- 3.2%
13,000 American Home Products Corp. $ 763
10,000 Bristol-Myers Squibb Co. 1,282
23,000 Pfizer, Inc. 2,958
12,000 Schering-Plough Corp. 654
21,000 Warner-Lambert, Inc. 1,516
--------
Total 7,173
--------
Retail -- 6.7%
95,000 Consolidated Stores Corp. (b) 1,585
100,000 Home Depot, Inc. 6,038
55,000 Lowe's Cos., Inc. 3,207
80,000 Pier 1 Imports, Inc. 760
36,000 Wal-Mart Stores, Inc. 3,096
--------
Total 14,686
--------
Telecommunications -- 3.4%
30,000 Century Telephone Enterprises, Inc. 2,040
70,000 MCI WorldCom, Inc. (b) 5,583
--------
Total 7,623
--------
Transportation -- 1.7%
100,000 Comair Holdings, Inc. 3,669
--------
Total Common Stocks 141,972
--------
Corporate Bonds -- 7.0%
Financial Services -- 4.0%
$46 Bankers Trust New York Corp.,
9.20%, 7/15/99 47
3,000 Ford Motor Credit Corp., 5.80%,
1/12/09 (c) 3,021
3,000 Salomon Smith Barney Holdings,
7.38%, 5/15/07 (c) 3,266
2,500 Toyota Motor Credit Corp., 5.50%,
12/15/08 2,480
--------
Total 8,814
--------
Industrial -- 3.0%
2,500 Phelps Dodge, 6.38%, 11/1/04 2,546
1,000 Service Corp. International, 6.50%,
3/15/08 (c) 1,035
3,000 TRW, Inc., 6.05%, 1/15/05 3,046
--------
Total 6,627
--------
Total Corporate Bonds 15,441
--------
U.S. Government Securities -- 26.5%
Mortgage Backed Securities -- 4.8%
588 Fannie Mae, 6.00%, 4/1/11,
Dwarf Pool #344185 591
3 Freddie Mac, 9.50%, 10/1/02,
Pool #38-0009 3
9 Freddie Mac, 8.00%, 8/1/08,
Pool #27-2525 9
3,949 GNMA, 6.50%, 9/20/28,
Pool #2644 3,975
5,957 GNMA, 6.50%, 10/20/28,
Pool #2658 5,996
--------
Total 10,574
--------
U.S. Government Agencies -- 4.5%
2,000 Fannie Mae, 5.75%, 4/15/03 (c) 2,058
3,000 Fannie Mae, 5.25%, 1/15/09 (c) 2,996
2,000 FHLB, 5.12%, 11/24/00 1,994
3,000 FHLB, 5.13%, 9/15/03 3,009
--------
Total 10,057
--------
U.S. Treasury Bonds -- 3.0%
1,000 4.75%, 11/15/08 1,007
4,750 6.63%, 2/15/27 (c) 5,649
--------
Total 6,656
--------
U.S. Treasury Notes -- 14.2%
11,000 4.63%, 12/31/00 (c) 11,001
6,000 5.38%, 2/15/01 (c) 6,086
4,000 6.25%, 2/28/02 4,181
9,750 5.88%, 2/15/04 10,295
--------
Total 31,563
--------
Total U.S. Government Securities 58,850
--------
Repurchase Agreement -- 1.3%
2,885 Warburg/Dillion, 4.70%, dated
1/31/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $2,947. 2,885
--------
Total Repurchase Agreement 2,885
--------
Short Term Securities Purchased with
Collateral -- 10.0%
Commercial Paper -- 3.1%
564 AIG Funding, 4.78%, 2/1/99 564
452 BellSouth Telecommunications,
4.85%, 2/4/99 451
645 BellSouth Telecommunications,
4.75%, 2/10/99 643
519 Coca-Cola Co., 4.77%, 2/16/99 517
467 Coca-Cola Co., 4.78%, 2/16/99 466
930 DuPont De Nemours & Co., 4.76%,
2/2/99 929
739 Harvard University, 4.82%, 2/1/99 739
1,300 Petrofina Delaware, Inc., 4.85%,
2/9/99 1,295
314 U.B.S. Financial Delaware, 4.83%,
2/9/99 313
200 Xerox Corp., 4.82%, 2/1/99 200
850 Xerox Corp., 4.80%, 2/8/99 847
--------
Total 6,964
--------
Corporate Bond -- 2.2%
2,715 GMAC, Floating Rate Note, 5.21%,
2/25/00 2,712
2,113 Goldman Sachs, Floating Rate Note,
5.00%, 7/24/00 2,108
--------
Total 4,820
--------
-Continued-
24
<PAGE>
Fifth Third Balanced Fund
- --------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------------------------------------------------------------------------
Repurchase Agreement -- 4.7%
$ 10,295 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value of
$10,561. $ 10,295
------------
Total Short Term Securities
Purchased with Collateral 22,079
------------
Total Investments
(Cost $193,041) (a)-- 108.8% 241,227
------------
Liabilities in excess of other
assets -- (8.8)% (19,546)
------------
TOTAL NET ASSETS -- 100.0% $221,681
------------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $48,186, which is composed of $55,029 appreciation and
$6,843 depreciation at January 31, 1999.
(b) Non-income producing security.
(c) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statment)
25
<PAGE>
Fifth Third Mid Cap Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- --------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------- -----------
Common Stocks -- 98.4%
Banking -- 8.2%
305,000 First Tennessee National Corp. (c) $ 11,152
155,000 Regions Financial Corp. 5,948
50,000 SouthTrust Corp. 1,856
-----------
Total 18,956
-----------
Business Services -- 7.1%
120,000 Boron, LePore & Associates, Inc. (b) 4,125
120,000 Cintas Corp. (c) 9,128
80,000 Fastenal Co. (c) 3,085
-----------
Total 16,338
-----------
Computer Software &
Services -- 4.1%
195,000 Fiserv, Inc. (b) (c) 9,543
-----------
Consumer Products -- 1.4%
80,000 Newell Co. (c) 3,325
-----------
Electronics -- 16.2%
285,000 Analog Devices, Inc. (b) 8,479
4,500 Applied Materials, Inc. (b) 284
410,000 Artesyn Technologies, Inc. (b) 6,611
210,000 Flextronics International Ltd. (b) (c) 8,899
220,000 Microchip Technology, Inc. (b) (c) 6,353
46,000 QLogic Corp. (b) 6,342
-----------
Total 36,968
-----------
Financial Services -- 6.0%
170,000 A.G. Edwards, Inc. 5,759
220,000 T. Rowe Price Associates, Inc. 8,044
-----------
Total 13,803
-----------
General Building
Contractors -- 1.9%
315,000 Clayton Homes, Inc. (c) 4,331
-----------
Healthcare -- 12.0%
10,000 Biomet, Inc. 366
190,000 HCR Manor Care, Inc. (b) 5,083
90,000 Respironics, Inc. (b) 1,384
395,000 STERIS Corp. (b) (c) 11,898
180,000 Sybron International Corp. (b) 4,860
90,000 Universal Health Services, Inc. (b) 4,028
-----------
Total 27,619
-----------
Insurance -- 6.5%
74,000 Cincinnati Financial Corp. $ 2,437
115,000 MGIC Investment Corp. 4,212
185,000 Mutual Risk Management, Ltd. (c) 6,799
27,000 Reinsurance Group America 1,539
-----------
Total 14,987
-----------
Manufacturing -- 3.7%
140,000 OM Group, Inc. 4,410
135,000 Zebra Technologies Corp., Class A (b) 4,075
-----------
Total 8,485
-----------
Media/Publishing -- 3.6%
130,000 Omnicom Group, Inc. 8,320
-----------
Medical Distribution -- 6.7%
218,000 Bergen Brunswig Corp. 6,104
125,000 Cardinal Health, Inc. (c) 9,242
-----------
Total 15,346
-----------
Oil & Gas -- 0.6%
170,000 Global Marine, Inc. (b) 1,413
-----------
Retail -- 7.9%
80,000 Borders Group, Inc. (b) 1,370
425,000 Casey's General Stores, Inc. 5,737
225,000 Consolidated Stores Corp. (b) 3,755
160,000 Dollar General Corp. (c) 3,990
340,000 Pier 1 Imports, Inc. 3,230
-----------
Total 18,082
-----------
Telecommunications -- 4.7%
160,000 Century Telephone Enterprises, Inc. 10,880
-----------
Transportation -- 7.8%
320,000 Comair Holdings, Inc. 11,740
165,000 GATX Corp. 6,136
-----------
Total 17,876
-----------
Total Common Stocks 226,272
-----------
Repurchase Agreement -- 1.7%
$3,944 Warburg/Dillion, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $4,028. 3,944
-----------
Total Repurchase Agreement 3,944
-----------
-Continued-
26
<PAGE>
Fifth Third Mid Cap Fund
- -------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------- -----------
Short Term Securities Purchased with
Collateral -- 22.6%
Commercial Paper -- 6.4%
$ 1,457 AIG Funding, 4.78%, 2/1/99 $ 1,456
764 BellSouth Telecommunications,
4.85%, 2/4/99 762
1,522 BellSouth Telecommunications,
4.75%, 2/10/99 1,518
1,377 Coca-Cola Co., 4.78%, 2/16/99 1,374
1,016 Coca-Cola Co., 4.77%, 2/16/99 1,013
1,861 DuPont De Nemours & Co., 4.76%,
2/2/99 1,858
1,922 Harvard University, 4.82%, 2/1/99 1,921
2,040 Petrofina Delaware, Inc., 4.85%,
2/9/99 2,032
663 U.B.S. Finance, Delaware, 4.83%,
2/9/99 662
1,451 Xerox Corp., 4.80%, 2/8/99 1,446
731 Xerox Corp., 4.82%, 2/1/99 731
-----------
Total 14,773
-----------
Corporate Bond -- 4.6%
5,511 GMAC, Floating Rate Note, 5.21%,
2/25/00 5,505
5,173 Goldman Sachs, Floating Rate Note,
5.00%, 7/24/00 5,160
-----------
Total 10,665
-----------
Repurchase Agreement -- 11.6%
$26,436 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/14 with a value of $27,119. $ 26,436
-----------
Total Short Term Securities
Purchased with Collateral 51,874
-----------
Total Investments
(Cost $238,551) (a) -- 122.7% 282,090
-----------
Liabilities in excess of other
assets -- (22.7)% (52,121)
-----------
TOTAL NET ASSETS -- 100.0% $ 229,969
-----------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $43,539, which is composed of $61,984 appreciation and
$18,445 depreciation at January 31, 1999.
(b) Non-income producing security.
(c) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statements)
27
<PAGE>
Fifth Third International Equity Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands except share amounts)
(Unaudited)
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
Common Stocks -- 72.3%
Australia -- 2.6%
16,053 Amcor, Ltd. $ 75
20,933 AMP Ltd. 253
8,323 Australian Gas & Light 58
1,285 Australian National Industries, Ltd. 1
27,086 Boral, Ltd. 39
5,137 Brambles Industries, Ltd. 140
49,108 Broken Hill Proprietary Co., Ltd. 360
706 Burns Philp & Co., Ltd. 0
18,490 Coca-Cola Amatil, Ltd. 75
26,356 Coles Myer, Ltd. 144
35,401 Crown, Ltd. 16
25,942 CSR, Ltd. 61
8,598 Email, Ltd. 12
3,118 F.H. Faulding & Co., Ltd. 17
41,609 Fosters Brewing Group 122
31,351 General Property Trust Units 59
15,600 Gio Australia Holdings, Ltd. 46
30,947 Goodman Fielder Wattie, Ltd. 30
4,495 Howard Smith, Ltd. 31
7,021 ICI Australia, Ltd. 36
7,449 Leighton Holdings 30
13,120 Lend Lease Corp. 174
51,904 M.I.M. Holdings, Ltd. 22
33,856 National Australia Bank, Ltd. 569
380 Newcrest Mining, Ltd. 1
44,247 News Corp., Ltd. (b) 320
57,000 Normandy Mining, Ltd. 49
24,550 North, Ltd. 37
25,043 Pacific Dunlop, Ltd. 43
21,062 Pioneer International 43
9,725 QBE Insurance Group, Ltd. 39
6,420 Rio Tinto, Ltd. 79
14,270 Santos, Ltd. 41
13,228 Schroders Property Fund 22
193 Sons of Gwalia, Ltd. 1
14,720 Southcorp. Holdings, Ltd. 49
7,192 Stockland Trust Group 19
8,091 TABCORP Holdings, Ltd. 57
121,220 Telstra Corp., Ltd. 658
32,482 Western Mining, Ltd. 100
26,428 Westfield Trust 61
46,018 Westpac Banking Corp., Ltd. 318
186 Westralian Sands Ltd. 0
---------
Total 4,307
---------
Austria -- 0.4%
716 Austria Tabakwerke AG $ 55
797 Austrian Airlines 28
3,644 Bank Austria 161
153 BAU Holding AG 6
2 BAU Holding AG-Vorzug 0
359 Boehler-Uddeholm 16
55 BWT AG 12
230 EA-Generali AG 54
690 Flughafen Wein AG 31
120 Lenzing AG 7
390 Mayr-Melnhof Karton AG 18
97 Mikro Systemeintl AG 3
298 Oesterreichische Brau-Beteiligun 15
992 Oesterreichische Elektrizitaetsw 160
869 OMV AG 77
455 Redex Herallith 10
488 VA Technologies 33
281 Weinerberger Baustoffindustrie 51
---------
Total 737
---------
France -- 10.0%
1,503 Accor SA 307
2,037 Air Liquid 333
4,281 Alcatel Alsthom 499
7,331 AXA SA 1,064
4,575 Banque Nationale De Paris 415
1,365 BIC 82
621 Bouygues 163
685 Canal Plus 211
1,617 Cap Gemini Sogeti 319
852 Carrefour SA 569
1,698 Casino Guichard Perrachon 165
3,920 Cie Paribas 374
2,557 Dassault Systems SA 119
2,211 De St. Gobain 309
958 Eridania Beghin-Sav SA 158
299 Essilor International 125
16,569 France Telecom SA 1,561
3,497 Generale Des Eaux 1,022
1,397 Groupe Danone 392
2,896 Klepierre 269
1,414 L'OREAL 1,021
2,423 La Farge-Coppee 212
3,175 La Gardere Groupe Sca 139
635 Le Grand SA 142
1,957 Lvmh Moet Vuitton Hennessy Lous 476
-Continued-
28
<PAGE>
Fifth Third International Equity Fund
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
3,171 Lyonnaise Des Eaux SA $ 653
4,772 Michelin Class B, Registered 183
1,990 Pechiney SA, Series A 68
1,575 Pernod Ricard 99
1,165 Peugeot SA 198
2,622 Pinaukt Printemps Redo 480
420 Promodes 290
8,318 Rhone Poulenc SA 437
86 Sagem SA 56
2,404 Sanofi SA 472
3,844 Schneider SA 223
1,481 Seita 84
863 Silic 144
2,202 Simco-Union SA, Registered 200
6,182 Societe Elf Aquitane SA 670
2,140 Societe Generale 384
760 Sodexho SA 135
3,552 Sophia SA 153
3,684 Thomson CSF 149
5,754 Total SA, Class B 585
2,035 Unibail Union Du Credit Bail 259
6,396 Unisor Sacilor SA 82
1,985 Valeo SA 174
----------
Total 16,624
----------
Germany -- 8.4%
883 Adidas 73
917 Agiva AG 21
4,553 Allianz AG 1,669
350 Amb Aachener Muenchner 45
11,467 BASF AG 423
13,217 Bayer AG 505
7,482 Bayerische Vereins AG 486
1,200 Bilfinger & Berger 23
17 Brau & Brunnen (b) 1
433 CKAG Konzern AG 45
2,200 Continental Gummiwerke AG 59
18,599 DailmerChrysler AG (b) 1,928
1,333 Degussa AG 52
9,383 Deutsche Bank AG 531
39,763 Deutsche Telekom 1,805
9,067 Dresdner Bank AG 371
357 Heidelberger Zement 25
1,950 Hochtief AG 59
217 Karstadt AG 92
1,300 Kloeckner Humboldt Deutz AG (b) 11
2,817 Kugelfischer Georg Schaefer 21
167 Linde AG 85
6,633 Lufthansa AG 140
233 Man AG 63
6,670 Mannesmann AG 942
4,017 Merck KGaA 147
4,363 Metro AG 354
3,034 Muenchener Rueckversicher (b) 733
283 Preussag AG 145
7,959 RWE AG 379
1,125 SAP AG 390
1,450 Schering AG 195
10,417 Siemens AG 740
17 STRABAG AG (b) 1
767 Thyssen AG 130
9,117 VEBA AG 543
500 Viag AG 271
5,430 Volkswagen Ag 426
----------
Total 13,929
----------
Great Britain -- 21.7%
28,257 Abbey National PLC 554
20,955 Albert Fisher Group PLC 2
1,453 Allders PLC 3
31,630 Allied Zurich PLC (b) 478
4,250 Amec PLC 11
17,780 Anglian Water PLC 222
18,601 Associated British Foods PLC 161
12,734 Associated British Ports Holdings PLC 57
23,420 BAA PLC 275
10,041 Baird (William) PLC 13
30,249 Barclays PLC 676
6,078 Barratt Development PLC 21
16,663 Bass PLC 224
727 Bba Group PLC 5
15,317 Beazer Group PLC 36
10,589 Berisford PLC 30
4,129 Berkeley Group PLC 30
4,316 BICC Group PLC, Registered 4
38,181 Blue Circle Industries PLC 188
10,398 BOC Group PLC 142
18,438 Boots Co. PLC 268
21,274 BPB Industries PLC 74
38,685 British Aerospace PLC 292
23,790 British Airways PLC 139
31,260 British American Tobacco PLC 317
77,307 British Gas 477
40,169 British Land Co. PLC 292
187,947 British Petroleum Co. PLC 2,535
34,437 British Sky Broadcasting Group PLC 262
53,644 British Steel PLC 117
122,526 British Telecommunications PLC 1,865
126,020 BTR PLC, A Shares 222
70,830 Burford Holdings PLC 99
18,165 Burmah Castrol PLC 231
46,932 Cable & Wireless PLC 677
19,953 Cadbury Schweppes PLC 317
2,781 Capital Corp. PLC 2
47,390 Capital Shopping Centres 257
27,454 Caradon PLC 60
6,849 Carpetright PLC 25
90,925 Centrica PLC (b) 189
2,595 Cobham PLC 36
26,185 Commercial Union PLC 377
8,751 Compass Group PLC 114
1,422 Delta Group PLC 3
72,702 Diageo PLC 803
2,638 Dialog Corp. PLC (b) 3
-Continued-
29
<PAGE>
Fifth Third International Equity Fund
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
12,466 Electrocomponents PLC $ 84
3,516 Emap PLC 72
40,036 EMI Group PLC 249
16,028 Enterprise Oil 60
15,528 Firstgroup PLC 102
12,673 Fki PLC 30
56,218 General Electric Co. PLC 521
20,629 GKN PLC 254
70,349 Glaxo Holdings PLC 2,345
19,609 Granada Group PLC 345
101,820 Grant Chester Holdings 231
23,180 Great Universal Stores PLC 300
3,227 Greycoat PLC 10
21,693 Guardian Royal Exchange PLC 131
51,506 Halifax PLC 613
19,810 Hammerson PLC 117
15,421 Hanson PLC 101
8,170 House Of Fraser PLC 11
36,110 HSBC Holdings PLC 914
17,602 HSBC Holdings PLC (75P) 479
5,440 Hyder PLC 73
14,972 IMI PLC 56
14,394 Imperial Chemical Industries PLC 128
8,779 Jarvis PLC 86
859 JBA Holdings PLC 1
17,699 Johnson Matthey PLC 122
26,057 Kingfisher PLC 267
1,486 Kwik-Fit Holdings 10
34,535 Ladbroke Group PLC 128
3,792 Laird Group PLC 12
5,120 Land Securities 61
7,592 Land Securities PLC 91
42,338 LASMO PLC 73
24,457 Legal & General Group PLC 352
7,091 LEX Services PLC 43
6,829 Limit PLC 19
110,605 Lloyds TSB Group PLC 1,432
12,857 London Clubs International PLC 34
4,224 London Forfaiting Co, PLC 4
11,197 Lonrho PLC 62
1,126 LOW & Bonar PLC 4
76,093 Lucasvarity PLC 363
1,089 Manchester United PLC 4
59,405 Marks & Spencer PLC 354
24,223 Marley PLC 49
142 Mayflower Corp. PLC 0
1,306 McKechnie PLC 8
3,342 Meggitt Holdings PLC 8
9,459 MEPC PLC 61
13,195 Mirror Group PLC 46
33,917 Misys PLC 352
27,139 National Grid Group PLC 220
25,019 National Power PLC 196
21,293 Next PLC 222
25,360 NFC PLC 59
535 Ocean Group PLC 7
5,707 Parity PLC 56
12,115 Pearson PLC 267
13,271 Peninsular & Oriental Steam
Navigation Co. 144
6,811 Pennon Group PLC 119
66,057 Pilkington PLC 65
1,188 Powerscreen International PLC 2
5,626 Provident Financial PLC 82
36,401 Prudential Corp. PLC 560
6,266 Racal Electronics PLC 40
9,907 Railtrack Group PLC 251
36,811 Rank Group PLC 121
22,987 Reed International PLC 214
57,440 Rentokil Initial PLC 421
29,232 Reuters Group 442
1,341 Rexam PLC 4
22,463 Rio Tinto PLC, Registered 270
13,131 RMC Group PLC 146
60,681 Rolls-Royce PLC 242
32,755 Royal & Sun Alliance Insurance
Group PLC 247
7,254 Rugby Group PLC 12
22,993 Safeway PLC 103
38,287 Sainsbury (J) PLC 271
5,915 Schroder PLC 102
3,196 Scotia Holdings PLC (b) 3
14,167 Scottish & Newcastle PLC 166
13,891 Scottish & Southern Energy PLC 135
21,808 Scottish Power PLC 229
19,720 Sears PLC 115
51,850 Siebe PLC 173
971 Skillsgroup PLC 4
107,577 SmithKline Beecham PLC 1,443
12,005 Smiths Industries PLC 176
57,852 Stagecoach Holdings PLC 243
12,747 T.I. Group PLC 74
8,292 Tate & Lyle PLC 54
133,612 Tesco PLC 410
6,730 Thames Water PLC 118
948 Torotrak PLC 1
67,788 Unilever 676
10,625 United Utilities Group PLC 137
1,587 Vickers PLC 4
55,570 Vodafone Group PLC 1,080
139,870 Wates City Of London Properties (b) 159
1,114 Watson & Philip 1
666 Wickes PLC 2
17,251 Williams PLC 88
17,397 Wolseley PLC 111
18,148 WPP Group PLC 136
11,610 Yorkshire Water PLC 94
18,952 Zeneca Group PLC 874
--------
Total 36,048
--------
Hong Kong -- 1.4%
25,800 Bank of East Asia, Ltd. (b) 37
53,000 Cathay Pacific Airways, Ltd. 52
-Continued-
30
<PAGE>
Fifth Third International Equity Fund
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
38,000 Cheung Kong Holdings, Ltd. $ 264
12,000 Chinese Estates, Ltd. 2
43,000 CLP Holdings, Ltd. 195
26,000 Hang Lung Development Co., Ltd. 24
31,400 Hang Seng Bank, Ltd. 262
81,000 Hong Kong & China Gas, Ltd. 94
23,500 Hong Kong & Shanghai Hotel, Ltd. 14
212,626 Hong Kong Telecommunications,
Ltd. 344
22,000 Hopewell Holdings 9
64,000 Hutchison Whampoa, Ltd. 454
19,000 Hysan Development, Ltd. 22
13,000 Johnson Electronic Holdings 32
37,813 New World Developments Co., Ltd. 74
106,000 Regal Hotels International 10
66,850 Sino Land Co. 33
40,000 South China Morning Post, Ltd. 18
41,000 Sun Hung Kai Properties, Ltd. 270
27,500 Swire Pacific, Ltd., Class A 117
8,000 Television Broadcasts, Ltd. 21
43,000 Wharf Holdings, Ltd. 50
---------
Total 2,398
---------
Indonesia -- 0.0%
19,000 Mulia Industrindo 1
---------
Italy -- 6.0%
36,901 Alitalia SpA (b) 136
3,700 Assicuratrice Industrial 44
27,488 Assicurazioni Generali SpA 1,167
41,574 Banc San Paolo Torino 678
50,100 Banca Commerciale Italiana 319
6,000 Banca Popolare Di Milano 51
52,200 Banco Ambrosiano Veneto 267
49,260 Benetton Group SpA 83
2,400 Burgo (Cartiere) SpA 13
161,980 Ciga (b) 125
116,197 Credito Italiano 632
19,000 Edison SpA 207
221,000 Ente Nazional Indrocarburi SpA 1,309
2,000 Falck, Accia & Ferriere Lombarde 15
113,830 Fiat SpA 367
26,720 Fiat SpA, di risp 48
25,900 Immonbilara Metanopoli 28
11,000 Impregilo SpA (b) 9
110,300 Istituto Nazionale Assicuraz 266
4,150 Italcementi SpA 46
5,850 Italcementi SpA, di risp 29
13,300 Italgas SpA 86
9,900 Magneti Marelli SpA 15
30,500 Mediaset SpA 305
17,800 Mediobanca Banca SpA 206
109,154 Montedison SpA 111
31,500 Montedison SpA, di risp 27
87,680 Olivetti Ing & Co. SpA (b) 345
47,480 Parmalat Finanziaria SpA 75
60,000 Pirelli SpA 159
13,125 RAS Italian 154
1,600 Reno (Saffa) (b) 4
6,600 Rinascente 67
880 Riunione Adriatica di Sicur 8
5,300 Sirti SpA 30
24,000 Snia BPD SpA 38
250 Societa Assicuratrice Industriale SpA 1
95,833 Telecom Italia SpA 897
22,151 Telecom Italia SpA, di risp 150
177,500 TIM SpA 1,207
42,500 TIM SpA, di risp (b) 178
300,098 Unione Immobiliare SpA 180
---------
Total 10,082
---------
Japan -- 19.6%
3,100 Acom Co., Ltd. 185
29,400 Ajinomoto Co., Inc. 328
32,600 Aoki Corp. (b) 14
44,900 Asahi Bank, Ltd. 201
14,000 Asahi Breweries, Ltd. 189
59,000 Asahi Chemical Industry Co., Ltd. 249
38,800 Asahi Glass Co., Ltd. 232
99,000 Bank of Tokyo-Mitsubishi, Ltd. 1,177
17,400 Bank of Yokohama, Ltd. 35
22,000 Bridgestone Corp. 482
20,400 Canon, Inc. 441
11,800 Casio Computer Co., Ltd. 86
13,400 Chiba Bank 56
11,600 Chugai Pharmaceutical Co., Ltd. 124
3,500 Credit Saison Co., Ltd. 75
18,600 Dai Nippon Printing Co., Ltd. 271
20,600 Daiei, Inc. 57
19,600 Daikin Industries, Ltd. 169
19,600 Daiwa House Industry Co., Ltd. 201
45,000 Daiwa Securities, Ltd. 166
132 East Japan Railway Co. 811
12,800 Ebara Corp. 130
4,400 Fanuc Co., Ltd. 154
114,000 Fuji Bank 479
12,000 Fuji Photo Film Co., Ltd. 443
49,000 Fujitsu, Ltd. 642
13,800 Furukawa Electric Co. 59
8,000 Gunma Bank, Ltd. 63
11,000 Hankyu Corp. 50
20,000 Hazama Corp. 12
95,000 Hitachi, Ltd. 682
20,000 Honda Motor Co., Ltd. 743
55,000 Industrial Bank of Japan 276
10,000 ITO-Yokado Co., Ltd. 629
62,000 Japan Airlines (b) 161
47,000 Japan Energy Corp. (Nikko Kyodo
Co., Ltd.) 48
7,600 Joyo Bank 27
9,800 JUSCO, Ltd. 190
39,400 Kajima Corp. 102
25,300 Kansai Electric Power, Inc. 508
13,000 Kao Corp. 263
31,400 Kawasaki Steel Corp. 45
-Continued-
31
<PAGE>
Fifth Third International Equity Fund
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
31,000 Kinki Nippon Railway $ 176
40,400 Kirin Brewery Co., Ltd. 490
33,400 Komatsu, Ltd. 176
57,000 Kubota Corp. 155
61,400 Kumagai Gumi Co., Ltd. 46
5,200 Kyocera Corp. 277
17,600 Kyowa Hakko Kogyo Co., Ltd. 91
53,800 Marubenii Corp. 92
5,000 Marui Co., Ltd. 90
44,000 Matsushita Electric Industrial Co.,
Ltd. 748
60,000 Mitsubishi Chemical Corp. 127
40,000 Mitsubishi Corp. 229
66,800 Mitsubishi Electric Corp. 238
17,000 Mitsubishi Estate Co., Ltd. 158
87,000 Mitsubishi Heavy Industries, Ltd. 352
37,200 Mitsubishi Material Corp. 65
27,000 Mitsubishi Trust & Banking Co. 219
54,800 Mitsui & Co. 328
39,400 Mitsui Engineering & Shipbuilding
Co., Ltd. (b) 37
13,400 Mitsui Fudosan 107
1,200 Mitsui Trust & Bankings Co. 1
19,600 Mitsukoshi, Ltd. 52
10,000 Murata Manufacturing Co., Ltd. 464
12,800 Mycal Corp. 80
35,200 NEC Corp. 361
40,400 New Oji Paper Co. 210
20,600 NGK Insulators, Ltd. 244
6,600 Nippon Denso, Ltd. 130
14,600 Nippon Express Co., Ltd. 75
13,600 Nippon Fire & Marine Insurance 47
115,800 Nippon Kokan 69
17,600 Nippon Light Metal Co. 19
7,600 Nippon Meat Packers, Inc. 113
56,800 Nippon Oil Co., Ltd. 185
221,800 Nippon Steel Corp. 393
279 Nippon Telegraph & Telephone Corp. 2,250
56,000 Nippon Yusen Kabushiki Kaisha 166
68,600 Nissan Motors Co., Ltd. 248
39,000 Nomura Securities Co., Ltd. 340
22,400 Odakyu Electric Railway 80
800 Orix Corp. 55
79,200 Osaka Gas Co., Ltd. 234
17,600 Penta-Ocean Construction Co., Ltd. 31
5,000 Pioneer Electronic Corp. 89
2,000 Rohm Co. 188
75,000 Sakura Bank 183
11,800 Sankyo Co., Ltd. 247
14,000 Sanwa Bank, Ltd. 134
52,000 Sanyo Electric Co. 159
3,800 Secom Co., Ltd. 304
4,000 Sega Enterprise, Ltd. 79
19,600 Sekisui House, Ltd. 197
33,200 Sharp Corp. 339
5,000 Shimano, Inc. 112
28,600 Shimizu Construction 98
7,800 Shin-Etsu Chemical Co. 190
8,800 Shiseido Co., Ltd. 99
11,400 Shizuoka Bank 141
38,400 Shon Denko KK 32
1,400 SMC Corp. 104
8,600 Sony Corp. 625
48,000 Sumitomo Bank, Ltd. 601
75,600 Sumitomo Chemical Co., Ltd. 270
38,200 Sumitomo Corp. 207
27,400 Sumitomo Electric Industries 310
5,000 Sumitomo Forestry Co., Ltd. 36
19,600 Sumitomo Metal & Mining 65
71,600 Sumitomo Metal Industries 80
19,600 Sumitomo Osaka Cement Co. 38
40,400 Taisei Construction 74
11,800 Taisho Pharmaceutical Co. 331
12,000 Taiyo Yuden Co., Ltd. 142
23,400 Takeda Chemical Industries 835
37,400 Teijin, Ltd. 130
8,000 The 77 Bank, Ltd. 74
25,600 Tobu Railway Co., Ltd. 77
6,400 Tohoku Electric Power Co., Inc. 105
36,800 Tokai Bank 174
35,000 Tokio Marine Fire Insurance Co. 397
32,800 Tokyo Electric Power 712
3,000 Tokyo Electron, Ltd. 138
37,600 Tokyo Gas, Ltd. 92
31,400 Tokyu Corp. 81
13,600 Toppan Printing Co., Ltd. 159
53,100 Toray Industries, Inc. 256
19,600 Toto, Ltd. 156
30,400 Toyobo, Ltd. 40
82,000 Toyota Motor Corp. 2,157
38,400 Ube Industries, Inc. 51
1,000 Yasuda Trust & Banking 1
19,000 Yokogawa Electric Corp. 100
---------
Total 32,512
---------
Netherlands -- 4.7%
24,894 ABN Amro Holdings NV 483
9,600 Aegon NV 1,054
5,800 Akzo NV 232
1,580 Buhrmann NV 26
10,400 Elsevier NV 163
1,505 Getronics 76
1,500 Hagemeyer NV 54
5,350 Heineken NV 289
15,969 ING Groep NV 930
1,446 KLM Royal Dutch Airlines NV 39
9,216 Koninklijke Ahold NV 358
27 Koninklijke Hoogovens NV 1
7,772 Konninklijke KNP NV 430
400 Nedlloyd Groep NV 5
1,614 Oce Van Grinten 48
6,200 Philips Electronics NV 451
6,048 Rodamco 149
37,300 Royal Dutch Petroleum Co. 1,498
-Continued-
32
<PAGE>
Fifth Third International Equity Fund
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
8,389 TNT Post Group NV $ 291
8,490 Uni-Invest 135
11,300 Unilever NV 864
1,300 Vedior NV 25
788 Verenigde Machinefabrieken
Stork NV 15
1,278 Wolters Kluwer NV CVA 252
-----------
Total 7,868
-----------
Norway -- 0.1%
42,700 Choice Hotels 66
20,190 Linstow, Series A 110
-----------
Total 176
-----------
Portugal -- 1.5%
9,479 Banco Commercial 298
5,800 Banco Espirito Santo 173
40 Banco Pinto Sotto 1
3,800 Banco Portugues Investmento 145
2,900 Brisa Autostradas 169
900 Cie De Seguros Tranquilidad 27
4,300 Cimpor Cimentos 127
100 Corporacao Industrial Do Norte 4
29,000 Electricidade De Portugal 707
500 Inapa 5
3,350 Jeronimo Martins 180
5,200 Portucel Industrial 31
9,600 Portugal Telecom 482
200 Sociedade De Construcoes Soares
Da Costa SA 1
900 Somague (SOC DE Empreitadas) 5
2,200 Sonae 91
800 Unicer 19
-----------
Total 2,465
-----------
Singapore -- 1.7%
26,666 Asia Food & Property (b) 4
40,000 City Development, Ltd. 163
26,000 Comfort Group Ltd. 8
4,500 Creative Technology, Ltd. 67
15,000 Cycle & Carriage, Ltd. 59
52,000 DBS Land, Ltd. 70
28,000 Development Bank of Singapore, Ltd. 215
14,000 First Capital Corp., Ltd. 10
15,000 Fraser & Neave, Ltd. 52
20,000 Hotel & Properties 9
8,000 Inchcape Motors Ltd. 9
45,000 Keppel Corp., Ltd. 108
18,000 Natsteel, Ltd. 20
20,000 Neptune Orient Lines, Ltd. 6
51,960 OCBC - Foreign 356
12,429 Overseas Union Enterprises, Ltd. 23
18,000 Parkway Holdings, Ltd. 34
200 Robinson & Co. 1
59,802 Sembcorp Industries, Ltd. 80
100 Shangri-La Hotel, Ltd. 0
64,000 Singapore International Airlines, Ltd. 435
18,059 Singapore Press Holdings 205
149,000 Singapore Tech. Engineering, Ltd. 132
373,000 Singapore Telecommunications, Ltd. 523
10,000 Straits Trading Co., Ltd. 8
84,000 United Industries Corp., Ltd. 34
35,000 United Overseas Bank, Ltd. 209
34,000 United Overseas Land, Ltd. 22
8,000 Venture Manufacturing Singapore
Ltd. 35
-----------
Total 2,897
-----------
Spain -- 5.0%
2,485 Acerinox SA 70
8,774 Acesa Autopista 132
1,808 ACS Actividades Cons y Serv 69
500 Alba 70
17,200 Argentaria Corporation 441
2,500 Azucarera Ebro 51
68,900 Banco Bilbao Vizcaya 1,031
32,000 Banco Central Hispanoamericano 369
39,878 Banco Santander 770
2,380 Corporacion Mapfre 53
1,900 Dragados & Construcciones SA 71
50 Empresa Nacional de Celulosas SA 1
32,575 Endesa SA 906
2,500 Fomento De Construction 177
4,900 Gas Natural SDG SA 505
29,700 Iberdrola SA 518
1,596 Inmobiliaria Metro 41
10,700 Repsol SA 580
1,631 Sociedade General De Aguas
D'Barcelona SA 107
1,100 SOL Melia SA 36
5,910 Tabacalera 137
34,430 Telefonica De Espana 1,574
7,225 Telepizza (b) 70
9,800 Union Electrica Fenosa SA 169
25,207 Vallehermoso SA 321
855 Zardoya Otis 25
-----------
Total 8,294
-----------
Sweden -- 2.2%
9,700 ABB AB, Series A 95
4,000 ABB AB, Series B 39
100 AGA AB, Series A 1
2,300 AGA AB, Series B 30
17,080 Asticus AB (b) 162
19,166 Astra AB, Series A 415
4,600 Astra AB, Series B 98
1,900 Atlas Copco AB, Series A 42
1,000 Atlas Copco AB, Series B 22
28,010 Castellum International, Ltd. 263
20,630 Diligentia AB 133
100 Drott AB (b) 1
4,500 Electrolux AB, Series B 70
27,600 Ericsson LM, Series B 747
5,000 Foereningssparbanken 133
3,000 Hennes & Mauritz AB, Series B 257
1,500 Netcom, Series B (b) 61
1,100 OM Gruppen AB 15
-Continued-
33
<PAGE>
Fifth Third International Equity Fund
- -------------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------
6,700 Piren AB $ 42
2,900 Sandvik, Series A 53
1,200 Sandvik, Series B 22
3,900 Securitas AB, B Shares 61
7,500 Skandia Forsakring 122
8,700 Skandinaviska Enskilda Banken,
Class A 102
1,800 Skanska AB, Series B 52
1,200 SKF AB, Series B 15
1,800 SSAB Swedish Steel 19
3,200 Svenska Cellulosa AB, Series B 68
3,100 Svenska Handelsbanken, Class A 123
9,280 Tornet Fastighets AB 138
2,100 Trelleborg AB, Series B 20
2,100 Volvo AB, Series A 55
4,400 Volvo AB, Series B 120
1,100 WM-Data AB, Series B 54
-----------
Total 3,650
-----------
Switzerland -- 7.0%
200 ABB AB, Bearer 219
380 Adia SA, Bearer 180
125 Alusuisse-Lonza Holding,
Registered 140
5,600 Credit Suisse Group, Registered 892
65 George Fischer, Registered 21
150 Holderbank Financiere Glarus AG 157
815 Nestle SA, Registered 1,490
1,325 Novartis AG, Registered 2,478
34 Roche Holdings AG 607
143 Roche Holdings AG, Genuss 1,863
335 Sairgroup 71
115 SMH Swiss Corp. 62
43 Societe Generale 38
95 Sulzer AG, Registered 52
300 Swiss Reinsurance Co., Registered 744
1,390 Swisscom AG, (b) 606
4,202 UBS AG, Registered 1,359
130 Valora Holding AG, Registered 31
985 Zurich Allied AG 727
-----------
Total 11,737
-----------
Thailand -- 0.0%
8,700 CMIC Finance & Securities Co., Ltd. 0
13,300 Finance One PLC (b) 0
14,500 General Finance & Securities Co.,
Ltd. 0
9,100 Univest Land Public Co., Ltd. (b) 0
-----------
Total Common Stocks (Cost $128,157) 153,725
-----------
Preferred Stock -- 0.4%
Australia -- 0.2%
40,018 News Corp., Ltd. 272
-----------
Germany -- 0.2%
775 SAP AG 306
1,750 Volkswagen 83
-----------
Total 389
-----------
Italy -- 0.0%
35,750 Fiat SpA 59
-----------
Total Preferred Stock (Cost $499) 720
-----------
Warrants and Rights -- 0.0%
Hong Kong -- 0.0%
5,750 Hong Kong & China Gas Warrants 0
3,200 Hysan Development Company
Warrants 0
-----------
Spain -- 0.0%
34,430 Telefonica SA 32
-----------
Thailand -- 0.0%
1,290 National Finance & Security
Warrants 0
-----------
Total Warrants and Rights (Cost $0) 32
-----------
Convertible Securities -- 0.0%
Portugal -- 0.0%
960 Jeronimo Martins, 12/30/04 7
-----------
Total Convertible Securities (Cost $5) 7
-----------
Corporate Bonds -- 0.0%
France -- 0.0%
$0 Casino Guichard, 4.50%, 7/12/01 0
40 Sodexho SA, 6.00%, 6/7/04 8
-----------
Italy -- 0.0%
12,800 Mediobanca, 4.50%, 1/1/00 7
-----------
Total Corporate Bonds (Cost $34) 15
-----------
Repurchase Agreements -- 7.0%
United States -- 7.0%
$ 11,705 Warburg/Dillion, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $11,955. 11,705
-----------
Total Repurchase Agreements
(Cost $11,705) 11,705
-----------
Total Investments
(Cost $137,912) (a) -- 99.7% 166,204
-----------
Assets in excess of other
liabilities -- 0.3% 572
-----------
TOTAL NET ASSETS -- 100.0% $166,776
-----------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $28,292, which is composed of $34,935 appreciation and
$6,643 depreciation at January 31, 1999.
(b) Non-income producing security
The International Equity Fund's investment concentration, by industry, as of
January 31, 1999, was as follows:
Automotive 4.09%
Banking 9.15%
Business & Financial Services 4.92%
Chemicals 2.32%
Electric 1.98%
Energy 4.62%
Health & Personal Care 3.16%
Insurance 7.79%
Pharmaceuticals 2.74%
Real Estate 3.01%
Telecommunications 9.61%
Other 46.61%
(See Notes which are an integral part of the Financial Statements)
34
<PAGE>
Fifth Third Bond Fund For Income
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
- --------------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- --------------------------------------------------------------------------------
Asset Backed Securities -- 1.9%
Financial -- 1.9%
$ 5,000 GE Capital Management, 6.94%,
3/25/27 $ 5,047
---------
Total Asset Backed Securities 5,047
---------
Corporate Bonds -- 35.0%
Financial -- 18.9%
5,000 American General Finance Corp.,
7.25%, 4/15/00 5,102
5,000 AT&T Capital Corp., 7.50%,
11/15/00 5,096
5,000 DLJ, Medium Term Note, 6.38%,
5/26/00 5,022
5,000 Ford Motor Credit Corp., 7.75%,
10/1/99 5,071
5,000 Nationsbank Corp., 5.75%, 3/15/01 5,026
8,000 Reliastar Financial Corp., 7.13%,
3/1/03 8,294
5,000 Shawmut National Corp., 7.20%,
4/15/03 5,292
5,000 Southern National Corp., 7.05%,
5/23/03 5,262
5,000 Toyota Motor Credit Corp., 5.50%,
12/15/08 4,961
---------
Total 49,126
---------
Industrial -- 13.8%
5,000 Engelhard Corp., 7.00%, 8/1/01 5,130
5,000 First Data Corp., 6.38%, 12/15/07 5,218
4,000 Service Corp. Intl., 6.38%, 10/1/00 4,050
5,000 Supervalue, Medium Term Note,
6.64%, 6/9/06 5,156
6,000 TRW, Inc., 6.05%, 1/15/05 6,091
5,000 Tyco International, Ltd., 6.38%,
1/15/04 5,128
5,000 Walt Disney Co., 5.13%, 12/15/03 4,991
---------
Total 35,764
---------
Telecommunications -- 1.9%
5,000 British Telecommunications, Inc.,
9.38%, 2/15/99 5,006
---------
Utilities -- 0.4%
1,000 Southern New England, 8.00%,
11/20/01 1,066
---------
Total Corporate Bonds 90,962
---------
U.S. Government Securities -- 57.7%
Mortgage Backed Securities -- 14.9%
0 Freddie Mac, 7.50%, 2/1/02,
Pool #200067 0
968 GNMA, 10.50%, 7/15/14,
Pool #321016 1,053
913 GNMA, 8.50%, 6/15/22,
Pool #220207 990
36,498 GNMA, 6.50%, 8/20/28,
Pool #2630 36,737
---------
Total 38,780
---------
U.S. Government Agencies -- 17.7%
$ 5,000 Fannie Mae, 4.75%, 11/14/03 (b) 4,939
7,000 Fannie Mae, 5.25%, 1/15/09 (b) 6,992
5,000 FHLB, 5.12%, 11/24/00 4,985
5,000 FHLB, 5.61%, 8/10/01 5,066
8,000 FHLB, 6.06%, 3/25/02 8,008
8,000 FHLB, 5.13%, 9/15/03 8,022
7,750 Freddie Mac, 5.75%, 7/15/03 7,991
---------
Total 46,003
---------
U.S. Treasury Bonds -- 2.9%
7,500 4.75%, 11/15/08 (b) 7,552
---------
U.S. Treasury Notes -- 22.2%
5,000 5.38%, 1/31/00 5,033
2,500 6.13%, 7/31/00 2,551
8,000 5.38%, 2/15/01 (b) 8,115
11,500 6.13%, 12/31/01 11,956
12,000 6.50%, 5/31/02 12,670
8,000 5.88%, 9/30/02 8,323
8,000 6.13%, 8/15/07 (b) 8,740
---------
Total 57,388
---------
Total U.S. Government Securities 149,723
---------
Repurchase Agreement -- 4.4%
11,391 Warburg/Dillion, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $11,635. 11,391
---------
Total Repurchase Agreement 11,391
---------
Short Term Securities Purchased with
Collateral -- 9.2%
Commercial Paper -- 3.1%
857 AIG Funding, 4.78%, 2/1/99 857
600 BellSouth Telecommunications,
4.75%, 2/10/99 598
543 BellSouth Telecommunications,
4.85%, 2/4/99 541
560 Coca-Cola, Inc., 4.78%, 2/16/99 559
635 Coca-Cola, Inc., 4.77%, 2/16/99 633
1,127 DuPont De Nemours & Co., 4.76%,
2/2/99 1,125
1,116 Harvard University, 4.82%, 2/1/99 1,116
1,100 Petrofina Delaware, Inc., 4.85%,
2/9/99 1,096
433 U.B.S. Finance, Delaware, 4.83%,
2/9/99 432
988 Xerox Corp., 4.80%, 2/8/99 985
200 Xerox Corp., 4.82%, 2/1/99 200
---------
Total 8,142
---------
-Continued-
35
<PAGE>
Fifth Third Bond Fund For Income
- --------------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- --------------------------------------------------------------------------------
Repurchase Agreements -- 6.1%
$ 15,813 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value
of $16,222. $ 15,813
---------
Total Short Term Securities
Purchased with Collateral 23,955
---------
Total Investments
(Cost $277,731) (a) -- 108.2% 281,078
---------
Liabilities in excess of other
assets -- (8.2)% (21,286)
---------
TOTAL NET ASSETS -- 100.0% $259,792
---------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $3,347, which is composed of $3,477 appreciation and $130
depreciation at January 31, 1999.
(b) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statements)
36
<PAGE>
Fifth Third Quality Bond Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
- -------------------------------------------------------------------------
Shares
or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------- -----------
Corporate Bonds -- 11.6%
Financial -- 11.6%
$5,000 Ford Motor Credit Corp., 5.80%,
1/12/09 (b) $ 5,035
4,000 Provident Cos., Inc., 6.38%, 7/15/05 4,134
5,000 Toyota Motor Credit Corp., 5.50%,
12/15/08 4,961
-----------
Total Corporate Bonds 14,130
-----------
U.S. Government Securities -- 75.6%
Mortgage Backed Securities -- 12.7%
4 Freddie Mac, 9.50%, 10/1/02,
Pool #38-0009, CMO 4
11 Freddie Mac, 8.00%, 8/1/08,
Pool #27-2525, CMO 11
3,949 GNMA, 6.50%, 9/20/28 3,975
11,417 GNMA, 6.50%, 10/20/28 11,492
-----------
Total 15,482
-----------
U.S. Government Agencies -- 15.5%
4,000 Fannie Mae, 5.75%, 4/15/03 (b) 4,117
5,000 Fannie Mae, 5.25%, 1/15/09 (b) 4,994
5,000 FHLB, 5.12%, 11/24/00 4,985
4,500 Freddie Mac, 6.28%, 3/6/06 4,777
-----------
Total 18,873
-----------
U.S. Treasury Bonds -- 17.0%
5,000 4.63%, 11/30/00 (b) 4,997
8,500 4.75%, 11/15/08 (b) 8,559
6,000 6.63%, 2/15/27 7,136
-----------
Total 20,692
-----------
U.S. Treasury Notes -- 30.4%
2,500 4.63%, 12/31/00 (b) 2,500
17,000 5.38%, 2/15/01 (b) 17,244
5,000 6.25%, 2/28/02 5,227
3,000 5.75%, 8/15/03 3,135
5,000 4.25%, 11/15/03 (b) 4,934
4,000 5.50%, 2/15/08 (b) 4,233
-----------
Total 37,273
-----------
Total U.S. Government Securities 92,320
-----------
Repurchase Agreement -- 11.5%
$13,981 Warburg/Dillion, 4.70%, dated
1/31/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $14,280. 13,981
-----------
Total Repurchase Agreement 13,981
-----------
Short Term Securities Purchased with
Collateral -- 17.2%
Commercial Paper -- 5.6%
690 AIG Funding, 4.78%, 2/1/99 690
750 BellSouth Telcommunications,
4.75%, 2/10/99 748
298 BellSouth Telecommunications,
4.85%, 2/4/99 297
493 Coca-Cola Co., 4.77%, 2/16/99 491
550 Coca-Cola Co., 4.78%, 2/16/99 549
957 DuPont De Nemours & Co., 4.76%,
2/2/99 956
957 Harvard University, 4.82%, 2/1/99 957
710 Petrofina Delaware Inc., 4.85%, 2/9/99 707
348 U.B.S. Finance Delaware, 4.83%, 2/9/99 347
195 Xerox Corp., 4.82%, 2/1/99 195
850 Xerox Corp., 4.80%, 2/8/99 847
-----------
Total 6,784
-----------
Corporate Bond -- 1.3%
1,529 GMAC, Floating Rate Note, 5.21%,
2/25/00 1,527
-----------
Repurchase Agreements -- 10.3%
$12,625 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value of $12,951. 12,626
-----------
Total Short Term Securities
Purchased with Collateral 20,937
-----------
Total Investments
(Cost $140,110) (a) -- 115.9% 141,368
-----------
Liabilities in excess of other
assets -- (15.9)% (19,349)
-----------
TOTAL NET ASSETS -- 100.0% $122,019
-----------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $1,258, which is composed of $1,428 appreciation and $170
depreciation at January 31, 1999.
(b) All or part of this security has been loaned at January 31, 1999.
The following abbreviations are used in this portfolio:
CMO - Collateralized Mortgage Obligation
(See Notes which are an integral part of the Financial Statements)
37
<PAGE>
Fifth Third U.S. Government Securities Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
- -------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------- -----------
U.S. Government Securities -- 95.8%
Mortgage Backed Securities -- 10.0%
$ 920 Fannie Mae, 6.00%, 6/1/01,
Pool #303016 $ 921
3,967 Fannie Mae, 6.00%, 10/1/04,
Pool #N97816 4,001
-----------
Total 4,922
-----------
U.S. Government Agencies -- 50.3%
2,000 Fannie Mae, 5.78%, 2/12/03
(Callable 2/12/01 @ 100) 2,018
4,000 Fannie Mae, 5.75%, 4/15/03 (b) 4,117
1,000 Fannie Mae, 4.75%, 11/14/03 988
3,000 Fannie Mae, 6.75%, 7/26/04
(Callable 7/26/00 @ 100) 3,071
2,000 Fannie Mae, 6.29%, 5/9/05
(Callable 5/9/01 @ 100) 2,042
1,000 Fannie Mae, 6.38%, 7/20/05
(Callable 7/20/99 @ 100) 1,005
2,000 FFCB, 5.10%, 11/24/03 1,999
1,000 FHLB, 5.53%, 8/28/00 1,007
1,000 FHLB, 6.29%, 12/23/02
(Callable 12/23/99 @ 100) 1,009
5,500 FHLB, 5.13%, 9/15/03 5,515
2,000 FHLB, 6.00%, 4/23/04
(Callable 4/23/99 @ 100) 1,999
-----------
Total 24,770
-----------
U.S. Treasury Notes -- 35.5%
5,600 5.88%, 11/30/01 5,781
5,000 6.25%, 6/30/02 5,247
2,000 5.75%, 11/30/02 2,074
3,000 6.50%, 5/15/05 3,291
1,000 5.88%, 11/15/05 1,067
-----------
Total 17,460
-----------
Total U.S. Government Securities 47,152
-----------
Repurchase Agreement -- 3.1%
$ 1,545 Warburg/Dillion, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Bond, 6.25%, due 8/15/23 with a
value of $1,579. 1,545
-----------
Total Repurchase Agreement 1,545
-----------
Short Term Securities Purchased with
Collateral -- 8.6%
Commercial Paper -- 2.1%
$ 166 AIG Funding, 4.78%, 2/1/99 $ 166
115 BellSouth Telecommunications,
4.85%, 2/4/99 115
50 BellSouth Telecommunications,
4.75%, 2/10/99 50
200 DuPont De Nemours & Co., 4.76%,
2/2/99 200
210 Harvard University, 4.82%, 2/1/99 209
100 Petrofina Delaware, Inc., 4.85%,
2/9/99 100
210 Xerox Corp., 4.80%, 2/8/99 209
-----------
Total 1,049
-----------
Repurchase Agreements -- 6.5%
$ 3,179 Morgan Stanley, 4.70%, dated
1/29/99, due 2/1/99 (at amortized
cost), collateralized by U.S. Treasury
Notes, 5.38%-7.25%, due
6/30/03-8/15/04 with a value of $3,261. 3,179
-----------
Total Short Term Securities
Purchased with Collateral 4,228
-----------
Total Investments
(Cost $52,056) (a) -- 107.5% 52,925
-----------
Liabilities in excess of other
assets -- (7.5)% (3,677)
-----------
TOTAL NET ASSETS -- 100.0% $49,248
-----------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $869, which is composed of $952 appreciation and $83
depreciation at January 31, 1999.
(b) All or part of this security has been loaned at January 31, 1999.
(See Notes which are an integral part of the Financial Statements)
38
<PAGE>
Fifth Third Municipal Bond Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
- -------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- --------- ---------------------------------------------------------------
Municipal Bonds -- 97.2%
Alabama -- 1.5%
$ 2,000 State, Public School & College
Authority, Revenue, 4.25%, 11/1/18
(Callable 11/1/08 @ 101.50) FSA $ 1,846
-------------
Arizona -- 2.8%
1,000 Phoenix, GO, 5.80%, 7/1/07
(Callable 7/1/05 @ 102) 1,125
2,500 Tempe, Series A, GO, 4.00%, 7/1/16
(Callable 7/1/07 @ 101) 2,277
-------------
Total 3,402
-------------
California -- 4.8%
4,000 San Mateo County Transportation
District, Series A, Revenue, 4.40%,
6/1/12 (Callable 6/1/08 @ 101)
MBIA 4,025
2,000 Yuba County, Water Agency,
Revenue, 4.00%, 3/1/16
(Callable 9/1/99 @ 100) MBIA 1,898
-------------
Total 5,923
-------------
Florida -- 12.2%
2,455 Escambia County, Revenue, 4.60%,
1/1/07, AMBAC 2,569
3,000 Florida State Board of Education,
Series B, Revenue, 5.00%, 7/1/05,
FGIC 3,221
4,000 Florida State Board of Education,
Series D, GO, 5.25%, 6/1/10
(Callable 6/1/08 @ 101) 4,371
2,000 Reedy Creek, Series A, GO, 5.25%,
6/1/09 (Callable 6/1/08 @ 100)
MBIA 2,187
2,500 Village Center Community
Development District, Series A,
Revenue, 5.50%, 11/1/12, MBIA 2,801
-------------
Total 15,149
-------------
Illinois -- 8.8%
1,000 Chicago Park, GO, 5.20%, 1/1/09
(Callable 1/1/06 @ 102) FGIC 1,074
1,230 Cook County Community School
District #097 Oak Park, Series A,
GO, 5.50%, 12/1/12
(Callable 12/1/09 @ 100) 1,232
1,300 Cook County Community School
District #097, Oak Park, Series A,
GO, 5.38%, 12/1/13
(Callable 12/1/09 @ 100) 1,391
1,500 Du Page County Community High
School District #099, Downers Grove,
GO, 5.50%, 12/1/15
(Callable 12/1/09 @ 100) FSA 1,597
3,000 Illinois State Toll Highway Authority,
Series A, Revenue, 3.50%, 1/1/05
(Callable 1/1/03 @ 100) 2,941
2,500 University of Illinois, Revenue,
5.25%, 8/15/04, MBIA 2,672
-------------
Total 10,907
-------------
Indiana -- 6.7%
1,625 Ball State University, Series I,
Revenue, 3.35%, 7/1/00, FGIC 1,629
1,000 Indiana Transportation Financial
Authority, Series A, Revenue, 5.00%,
12/1/06, MBIA 1,072
2,000 Marion County, Convention &
Recreational Facilities Authority,
Series A, Excise Tax Revenue, 5.00%,
6/1/12 (Callable 6/1/08 @ 101)
MBIA 2,084
1,275 Munster School Building Corp.,
Revenue, 5.70%, 7/15/10
(Prerefunded 1/15/05 @ 101) MBIA 1,414
2,000 South Bend Indiana Community
School Corp., Riley School Building
Corp., Refunding, Revenue, 5.25%,
7/1/12 (Callable 7/1/08 @ 101) 2,133
-------------
Total 8,332
-------------
Kansas -- 2.8%
1,250 Douglas County, Union School
District, GO, 6.00%, 9/1/09
(Prerefunded 9/1/03 @ 100) 1,369
2,000 Douglas County, Union School
District #497, GO, 5.00%, 9/1/07 2,153
-------------
Total 3,522
-------------
Kentucky -- 3.3%
2,000 Carrolton & Henderson Public
Energy Authority, Series A, Revenue,
5.00%, 1/1/09, FSA 2,128
2,000 Jefferson County School District,
Finance Corp., Series C, Revenue,
4.50%, 2/1/16 (Callable 2/1/09 @
101) MBIA 1,947
-------------
Total 4,075
-------------
Massachusetts -- 3.2%
4,000 State, Industrial Financial Agency,
Bradford College, Revenue, 5.25%,
11/1/18 -- Callable 11/1/08 @ 102) 3,956
-------------
Minnesota -- 1.7%
2,000 Public Facilities Authority, Water
Pollution Control, Revenue, 4.88%,
3/1/12 -- Callable 3/1/06 @ 100) 2,062
-------------
Mississippi -- 1.6%
2,000 Mississippi Development Bank,
Natural Gas Project, Revenue, 4.13%,
1/1/07, MBIA 1,997
-------------
Missouri -- 2.3%
2,000 Kansas City, Streetlight Project,
Series B, GO, 5.00%, 2/1/13
(Callable 2/1/07 @ 101) 2,080
800 State, Health Facilities, St. Anthony's
Medical Center, Series A, Revenue,
2.70%, 12/1/19 (b) 800
-------------
Total 2,880
-------------
-Continued-
39
<PAGE>
Fifth Third Municipal Bond Fund
- -------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------- -------------
Nebraska -- 1.8%
$ 2,000 Omaha, Public Power District,
5.90%, 2/1/06 $ 2,247
-------------
Nevada -- 3.5%
4,000 Clark County, Flood Control, GO,
5.25%, 11/1/10 (Callable 11/1/08
@ 101) FGIC 4,356
-------------
New Jersey -- 2.5%
3,000 New Jersey State Transportation,
Series A, Revenue, 5.13%, 6/15/15
(Callable 6/15/09 @ 100) 3,114
-------------
New Mexico -- 1.6%
2,000 New Mexico Finance Authority,
Federal Highway Grant Anticipation,
Series A, Revenue, 4.50%, 9/1/15
(Callable 9/1/08 @ 100) AMBAC 1,956
-------------
New York -- 1.9%
2,000 Westchester, GO, 6.70%, 11/1/05 2,349
-------------
North Carolina -- 1.7%
2,000 Charlotte, Water & Sewer, GO, 4.75%,
2/1/10 (Callable 2/1/08 @ 101) 2,106
-------------
Ohio -- 1.8%
1,000 Columbus, GO, 6.88%, 9/15/05
(Callable 9/15/01 @ 100) 1,086
1,000 Columbus Sewer Improvement
No 26-E-U, GO, 6.50%, 9/15/01 1,080
-------------
Total 2,166
-------------
Oklahoma -- 1.7%
2,000 Oklahoma City, GO, 5.00%, 2/1/08
(Callable 2/1/07 @ 100) 2,134
-------------
Pennsylvania -- 6.5%
3,500 State, GO, 5.30%, 5/1/04 3,763
2,000 State, Higher Education Facilities
Authority Health Services,
Revenue, 5.10%, 1/1/05 2,104
2,000 Trinity Area School District, GO,
6.63%, 11/1/11 (Callable 11/1/01
@ 100) FGIC 2,171
-------------
Total 8,038
-------------
Texas -- 13.3%
1,000 Del Valle, GO, 5.00%, 2/1/11
(Callable 2/1/07 @ 100) 1,045
2,000 Tarrant County, Junior College
District, GO, 5.00%, 2/15/09
(Callable 2/15/07 @ 100) 2,118
2,000 Travis County, GO, 4.63%, 3/1/13
(Callable 3/1/08 @ 100) 2,019
2,000 Travis County, GO, 4.50%, 3/1/15
(Callable 3/1/08 @ 100) 1,962
4,000 University of Texas, Revenue, 6.50%,
7/1/11 (Prerefunded 7/1/01 @ 102) 4,367
5,000 University of Texas, Revenue, 4.75%,
7/1/18 (Callable 7/1/08 @ 100) 4,908
-------------
Total 16,419
-------------
Utah -- 2.2%
1,530 St. George, Water Revenue, 5.60%,
6/1/10 (Callable 6/1/05 @ 101) $ 1,658
1,000 Utah State Building Ownership
Authority, Revenue, 5.50%, 5/15/09,
FSA 1,110
-------------
Total 2,768
-------------
Virginia -- 0.9%
1,000 Virginia Beach, GO, 5.70%, 11/1/07
11/1/04 @ 102) 1,105
-------------
Washington -- 2.7%
2,000 King County, School District No. 411,
6.50%, 12/1/09 (Prerefunded
12/1/02 @ 100), AMBAC 2,215
1,000 Spokane, Regional Solid Waste,
Revenue, 5.50%, 12/1/10 (Callable
12/1/05 @ 102), AMBAC 1,090
-------------
Total 3,305
-------------
West Virginia -- 2.5%
3,000 State, School Building Authority,
Revenue, 5.00%, 7/1/02 3,142
-------------
Wisconsin -- 0.9%
1,000 Milwaukee, GO, 5.30%, 6/15/07
(Prerefunded 6/15/02 @ 100) 1,056
-------------
Total Municipal Bonds 120,312
-------------
Short-Term Investments -- 3.8%
STIFS/MONEY MARKETS -- 3.8%
2,761 Federated Tax Free Trust 2,762
1,883 SEI Institutional Tax Free Fund 1,883
-------------
Total Short-Term Investments 4,645
-------------
Total Investments
(Cost $121,539) (a) -- 101.0% 124,957
-------------
Liabilities in excess of other
assets -- (1.0)% (1,263)
-------------
TOTAL NET ASSETS -- 100.0% $123,694
-------------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $3,418, which is composed of $3,514 appreciation and $96
depreciation at January 31, 1999.
(b) Current rate shown.
The following abbreviations are used in this portfolio:
AMBAC - American Municipal Bond Assurance Corporation
GO - General Obligation
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance
MBIA - Municipal Bond Investors Assurance Corporation
(See Notes which are an integral part of the Financial Statements)
40
<PAGE>
Fifth Third Ohio Tax Free Bond Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
- -------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------ -------------
Municipal Bonds -- 96.6%
Guam -- 1.3%
$2,500 Guam Government, Revenue,
Series A, 5.00%, 11/1/02, AMBAC $ 2,634
-------------
Ohio -- 94.4%
500 Akron, Various Purpose
Improvement, GO, 5.60%, 12/1/06
(Callable 12/1/04 @ 102), MBIA 553
1,510 Bowling Green State University,
Higher Education, Revenue, 5.55%,
6/1/10 (Callable 6/1/06 @ 101),
AMBAC 1,654
5,000 Butler County, Sewer System,
Revenue, 5.00%, 4/1/02, FSA 5,225
2,000 Butler County, Transportation,
Series A, Revenue, 4.70%, 12/1/11
(Callable 12/1/08 @ 101), FSA 2,065
4,000 Butler County, Transportation,
Series A, Revenue, 5.13%, 4/1/17
(Callable 4/1/08 @ 102), FSA 4,105
600 Cincinnati, GO, 7.00%, 10/1/00 637
5,000 Cincinnati, GO, 4.38%, 12/1/01 5,147
5,000 Cincinnati, GO, 4.38%, 12/1/02 5,165
7,500 Cleveland, GO, 5.30%, 9/1/08,
AMBAC 8,246
4,000 Cleveland City School District,
Revenue, 5.00%, 6/1/01, AMBAC 4,148
5,000 Cleveland City School District,
Revenue, 4.80%, 6/1/03, AMBAC 5,231
500 Cleveland Waterworks, Series G,
Revenue, 5.40%, 1/1/06, MBIA 546
3,000 Cleveland Waterworks, Series H,
Revenue, 5.63%, 1/1/13
(Callable 1/1/06 @ 102), MBIA 3,271
2,000 Cleveland Waterworks, Series I,
Revenue, 5.00%, 1/1/07, FSA 2,140
2,500 Cleveland Waterworks, Series I,
Revenue, 5.25%, 1/1/11
(Callable 1/1/08 @ 101), FSA 2,697
5,000 Cleveland, Public Power, Series 1,
Revenue, 5.25%, 11/15/16
(Callable 11/15/06 @ 102), MBIA 5,214
1,000 Columbus Refunding Limited,
Series A, GO, 5.30%, 7/1/09
(Callable 7/1/03 @ 101.5) 1,077
1,350 Columbus, Series 2, GO, 5.50%,
5/15/08 (Callable 5/15/04 @ 102) 1,481
5,000 Columbus, Series 2, GO, 6.00%,
6/15/07 5,748
4,000 Columbus, Series B, GO, 5.00%,
5/15/04 4,258
3,435 Cuyahoga County, GO, 5.60%,
5/15/13, MBIA-IBC 3,865
4,000 Cuyahoga Hospital Refunding,
Revenue, 5.63%, 1/15/13
(Callable 1/15/06 @ 102), MBIA 4,320
3,000 Cuyahoga Jail Facilities, GO, 5.25%,
10/1/13, MBIA-IBC 3,270
3,000 Cuyahoga Utility Improvements,
Revenue, 5.13%, 2/15/18
(Callable 2/15/08 @ 102), AMBAC 3,052
4,000 Dublin City School District, GO,
4.65%, 12/1/08 (Callable 12/1/07
@ 101), MBIA 4,203
500 Euclid City School District, GO,
6.70%, 12/1/02, (Callable 12/01/01
@ 102) 554
1,000 Euclid City School District, GO,
5.20%, 12/1/10 (Callable 12/1/05 @
102), AMBAC 1,075
1,500 Euclid City School District, GO,
5.13%, 12/1/11 (Callable 12/1/05 @
102), AMBAC 1,595
1,000 Franklin County, GO, 6.80%, 12/1/02
(Prerefunded 12/1/00 @ 102) 1,083
1,030 Franklin Refunding & Improvements,
Medical, Revenue, 6.50%, 5/1/07
(Callable 11/1/02 @ 102) 1,146
4,250 Greater Cleveland Transportation,
Series R, GO, 4.75%, 12/1/15
(Callable 12/1/08 @ 101), FGIC 4,271
6,000 Hamilton County Tax, Revenue,
4.75%, 12/1/27 (Callable 12/1/07
@ 101), MBIA 5,763
1,000 Hamilton County, Building
Improvement, GO, 5.90%, 12/1/99 1,025
2,000 Hamilton County, Sewer System,
Revenue, 5.40%, 12/1/08, FGIC 2,226
1,000 Hamilton County, Sewer System,
Series A, Revenue, 5.60%, 12/1/08
(Callable 12/1/05 @ 102), FGIC 1,110
500 Hamilton Hospital Facilities,
Revenue, 7.00%, 1/1/09
(Callable 7/1/99 @ 100) 508
1,000 Hamilton Hospital Refunding,
Revenue, 6.10%, 1/1/00 1,027
1,000 Hamilton Hospital Refunding,
Revenue, 6.50%, 1/1/02,
(Callable 1/1/01 @ 100), FGIC 1,059
1,500 Knox County Community Hospital,
Revenue, 5.00, 6/1/12, ASSET-GTY 1,558
1,000 Lakota Local School District, GO,
6.40%, 12/1/01, AMBAC 1,081
1,750 Montgomery County, Solid Waste,
Revenue, 5.25%, 11/1/04, MBIA 1,891
3,000 Montgomery County, Solid Waste,
Revenue, 5.40%, 11/1/08
(Callable 11/1/05 @ 102), MBIA 3,290
-Continued-
41
<PAGE>
Fifth Third Ohio Tax Free Bond Fund
- -------------------------------------------------------------------------
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------- -------------
$ 1,000 Montgomery Sisters of Charity,
Revenue, 6.50%, 5/15/08
(Callable 5/15/01 @ 102), MBIA $ 1,083
5,450 State Building Authority, Revenue,
5.25%, 10/1/08 5,983
1,000 State Building Facilities, Revenue,
6.20%, 10/1/07 (Callable 10/1/02
@ 102) 1,103
1,000 State Higher Education, Revenue,
5.15%, 11/1/08 (Callable 11/1/06
@ 101) 1,081
500 State Higher Education, Revenue,
6.70%, 5/1/01, (Callable 5/1/00 @
102), MBIA 532
5,000 State Highway, Series V, GO, 4.80%,
5/15/04 5,274
5,000 State Infrastructure, GO, 5.10%,
8/1/09 (Callable 8/1/07 @ 101) 5,414
5,000 State Public Facilities, Series II-A,
Revenue, 4.50%, 12/1/08
(Callable 12/1/07 @ 100) 5,181
500 State Public Facilities, Series II-A,
Revenue, 5.50%, 12/1/03
(Callable 12/1/01 @ 102), FSA 534
3,000 State Public Facilities, Series II-B,
Revenue, 5.75%, 11/1/04, AMBAC 3,316
2,000 State Public Facilities, Series II-B,
Revenue, 5.75%, 11/1/05
(Callable 11/1/04 @ 100), AMBAC 2,203
5,000 State Public Facilities, Series II-C,
Revenue, 4.00%, 6/1/02, FSA 5,082
2,500 State Special Obligation, Education,
Series B, Revenue, 5.00%, 12/1/06,
FSA 2,688
1,000 State Special Obligations, Education,
Series A, Revenue, 5.80%, 6/1/03,
AMBAC 1,088
5,000 State Turnpike, Series A, Revenue,
5.75%, 2/15/14, (Callable 2/15/06
@ 102), MBIA 5,658
2,000 State Turnpike, Series B, Revenue,
5.00%, 2/15/08, FGIC 2,147
5,000 State Water, Revenue, 5.13%,
12/1/08 (Callable 6/1/05 @ 101),
MBIA 5,348
5,000 State Water, Revenue, 5.30%, 12/1/10
(Callable 6/1/05 @ 101), MBIA 5,348
555 Tiffin, Sewer System, GO, 6.60%,
12/1/03, (Callable 12/1/01 @ 101) 609
500 University of Cincinnati, CP, 6.30%,
12/1/00, MBIA 528
3,000 University of Cincinnati, CP, 5.00%,
6/1/10, MBIA 3,226
$4,945 University of Cincinnati, Series T,
Revenue, 5.00%, 6/1/18
(Callable 6/1/08 @ 101) 4,964
2,000 Wauseon Village School District,
GO, 5.45%, 12/1/14
(Callable 6/1/07 @ 101), MBIA 2,145
1,000 West Geauga Local School District,
GO, 5.55%, 11/1/05
(Callable 11/1/04 @ 102), AMBAC 1,106
1,000 West Geauga Local School District,
GO, 5.65%, 11/1/06
(Callable 11/1/04 @ 102), AMBAC 1,108
5,000 Westerville, GO, 4.50%, 12/01/18
(Callable 12/1/09 @ 101) 4,797
2,000 Westlake City School District,
Series A, GO, 5.05%, 12/1/04 2,143
-------------
Total 197,269
-------------
Puerto Rico -- 0.9%
1,750 Puerto Rico Commonwealth
Highway, Series X, Revenue, 4.80%,
7/1/00 1,790
-------------
Total Municipal Bonds 201,693
-------------
Short-Term Investments -- 2.3%
STIFS/Money Markets -- 2.3%
3,821 Countrywide Ohio Tax Free Money
Fund 3,821
1,005 Vanguard Ohio Tax Free Money
Market Fund 1,000
-------------
Total Short-Term Investments 4,821
-------------
Total Investments
(Cost $196,684) (a) -- 98.9% 206,514
-------------
Other assets in excess of
liabilities -- 1.1% 2,207
-------------
TOTAL NET ASSETS -- 100.0% $208,721
-------------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation of $9,830, which is composed of $9,830 appreciation at January
31, 1999.
The following abbreviations are used in this portfolio:
AMBAC- American Municipal Bond Assurance Corporation
ASSET-GTY- Asset Guaranty
CP- Certificate of Participation
FGIC- Federal Guarantee Insurance Corporation
FSA-Financial Security Assurance
GO - General Obligation
IBC- Insured Bond Certificate
MBIA- Municipal Bond Insurance Association
(See Notes which are an integral part of the Financial Statements
42
<PAGE>
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 1999
(Amounts in thousands except per share amounts)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quality Equity
Growth Income Cardinal Pinnacle Balanced Mid Cap
Fund Fund Fund Fund Fund Fund
------ ------ -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at value (cost $433,539; $121,001;
$135,778; $50,068; $190,156 and $234,607,
respectively) $684,521 $170,004 $286,433 $ 70,744 $238,342 $278,146
Repurchase agreements (cost $9,689; $627; $0;
$5,527; $2,885; and $3,944, respectively) 9,689 627 - 5,527 2,885 3,944
-------- -------- -------- -------- -------- --------
Total Investments 694,210 170,631 286,433 76,271 241,227 282,090
Cash - 2 - - - -
Interest and dividends receivable 373 355 131 52 1,130 14
Receivable for investments sold 14,476 - 4,921 - 2,855 -
Receivable for Fund shares sold 188 139 70 1,030 194 40
Deferred organization costs - 6 - - - -
-------- -------- -------- -------- -------- --------
Total Assets 709,247 171,133 291,555 77,353 245,406 282,144
-------- -------- -------- -------- -------- --------
Liabilities:
Payable to Custodian - - 2,153 - - 25
Payable for investments purchased - - - 3,439 1,007 -
Payable for Fund shares redeemed 70 13 262 8 358 66
Payable for return of collateral received for
securities on loan 46,409 5,671 - 1,087 22,079 51,874
Accrued expenses and other payables:
Investment advisory fees 435 113 145 45 149 160
Administration fees 9 2 7 2 3 3
Distribution services - Investment A shares 20 3 56 4 15 7
Distribution services - Investment C shares 4 1 - 2 2 1
Shareholder servicing - Investment C shares 2 - - 1 1 -
Accounting and transfer agent fees 7 8 15 7 17 6
Custodian fees 1 2 8 4 4 4
Organization costs - - - - 2 -
Other 27 35 110 51 88 29
-------- -------- -------- -------- -------- --------
Total Liabilities 46,984 5,848 2,756 4,650 23,725 52,175
-------- -------- -------- -------- -------- --------
Net Assets:
Paid-in-capital 399,431 113,160 117,637 52,198 167,434 181,344
Accumulated undistributed net investment
income (loss) (327) 33 (208) (98) 92 (352)
Accumulated undistributed net realized
gain (loss) on investments and foreign
currency transactions 12,177 3,089 20,715 (73) 5,969 5,438
Net unrealized appreciation from investments 250,982 49,003 150,655 20,676 48,186 43,539
-------- -------- -------- -------- -------- --------
Total Net Assets $662,263 $165,285 $288,799 $ 72,703 $221,681 $229,969
======== ======== ======== ======== ======== ========
Net Assets
Institutional shares $555,239 $147,677 $ 19,431 $ 44,588 $142,194 $198,132
Investment A shares 98,171 16,216 269,077 23,455 73,805 30,954
Investment C shares 8,853 1,392 291 4,660 5,682 883
-------- -------- -------- -------- -------- --------
Total $662,263 $165,285 $288,799 $ 72,703 $221,681 $229,969
======== ======== ======== ======== ======== ========
Shares of beneficial interest outstanding
Institutional shares 24,933 10,003 1,035 1,201 8,847 12,997
Investment A shares 4,414 1,099 14,532 632 4,594 2,034
Investment C shares 403 94 31 126 354 59
-------- -------- -------- -------- -------- --------
Total 29,750 11,196 15,598 1,959 13,795 15,090
======== ======== ======== ======== ======== ========
Net asset value
Institutional shares $ 22.27 $ 14.76 $ 18.47 $ 37.13 $ 16.07 $ 15.25
======== ======== ======== ======== ======== ========
Investment A shares-redemption price per share $ 22.24 $ 14.76 $ 18.52 $ 37.10 $ 16.07 $ 15.22
======== ======== ======== ======== ======== ========
Investment C shares-offering price per share* $ 21.97 $ 14.76 $ 18.41 $ 36.91 $ 16.06 $ 14.96
======== ======== ======== ======== ======== ========
Maximum Sales Charge-Investment A Shares 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%
Maximum Offering Price
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to nearest cent)
per share (Investment A Shares) $ 23.29 $ 15.46 $ 19.39 $ 38.85 $ 16.83 $ 15.94
======== ======== ======== ======== ======== ========
</TABLE>
*Redemption price per share varies by length of time shares are held.
(See Notes which are an integral part of the Financial Statements)
43
<PAGE>
Fifth Third Funds
Statements of Assets and Liabilities
January 31, 1999
(Amounts in thousands except per share amounts)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond U.S. Ohio
International Fund Quality Government Municipal Tax Free
Equity For Bond Securities Bond Bond
Fund Income Fund Fund Fund Fund
--------- ------ ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at value (cost $126,207; $266,340;
$126,129; $50,511; $121,539; and $196,684,
respectively) $154,499 $269,687 $127,387 $ 51,380 $124,957 $206,514
Repurchase agreements (cost $11,705; $11,391;
$13,981; $1,545; $0 and $0, respectively) 11,705 11,391 13,981 1,545 - -
-------- -------- -------- -------- -------- --------
Total Investments 166,204 281,078 141,368 52,925 124,957 206,514
Cash - - 1 1 - 7
Foreign currency (cost $2,854) 2,854 - - - - -
Interest and dividends receivable 139 3,766 1,520 542 1,513 2,191
Receivable for investments sold 1,378 3,519 2,024 - - -
Receivable for Fund shares sold 2 70 138 - - -
Reclaim receivables 197 - - - - -
Deferred organization costs 5 6 - - 5 -
Other assets - - 14 53 6 140
-------- -------- -------- -------- -------- --------
Total Assets 170,779 288,439 145,065 53,521 126,481 208,852
-------- -------- -------- -------- -------- --------
Liabilities:
Payable to Custodian 3,495 4 - - - -
Payable for investments purchased 62 4,028 2,035 - 2,708 -
Payable for Fund shares redeemed 43 266 - 2 - -
Payable for return of collateral received for
securities on loan - 23,955 20,937 4,228 - -
Payable for variation margin in foreign
currency contracts and futures 234 - - - - -
Accrued expenses and other payables:
Investment advisory fees 143 121 56 20 58 97
Administration fees 4 5 1 - 1 2
Distribution services - Investment A shares 1 13 2 1 - 5
Distribution services - Investment C shares - - - - - 1
Accounting and transfer agent fees 8 18 12 19 13 22
Custodian fees 3 3 3 3 2 4
Organization costs 5 - - - 5 -
Other 5 234 - - - -
-------- -------- -------- -------- -------- --------
Total Liabilities 4,003 28,647 23,046 4,273 2,787 131
-------- -------- -------- -------- -------- --------
Net Assets:
Paid-in-capital 141,219 256,649 120,624 49,343 119,378 198,508
Accumulated undistributed net investment
income (loss) (7,398) (1) 21 19 9 (63)
Accumulated undistributed net realized
gain (loss) on investments and foreign
currency transactions 4,800 (203) 116 (983) 889 446
Net unrealized appreciation from investments 28,155 3,347 1,258 869 3,418 9,830
-------- -------- -------- -------- -------- --------
Total Net Assets $166,776 $259,792 $122,019 $ 49,248 $123,694 $208,721
======== ======== ======== ======== ======== ========
Net Assets
Institutional shares $161,118 $196,634 $111,520 $ 43,398 $123,424 $182,823
Investment A shares 5,397 62,687 9,675 5,613 270 24,975
Investment C shares 261 471 824 237 - 923
-------- -------- -------- -------- -------- --------
Total $166,776 $259,792 $122,019 $ 49,248 $123,694 $208,721
======== ======== ======== ======== ======== ========
Shares of beneficial interest outstanding
Institutional shares 13,437 16,131 11,037 4,337 9,995 17,413
Investment A shares 448 5,145 957 561 22 2,379
Investment C shares 22 39 82 24 - 88
-------- -------- -------- -------- -------- --------
Total 13,907 21,315 12,076 4,922 10,017 19,880
======== ======== ======== ======== ======== ========
Net asset value
Institutional shares $ 11.99 $ 12.19 $ 10.10 $ 10.01 $ 12.35 $ 10.50
======== ======== ======== ======== ======== ========
Investment A shares-redemption price per share $ 12.05 $ 12.18 $ 10.10 $ 10.01 $ 12.36 $ 10.50
======== ======== ======== ======== ======== ========
Investment C shares-offering price per share* $ 11.99 $ 12.19 $ 10.09 $ 9.97 $ - $ 10.49
======== ======== ======== ======== ======== ========
Maximum Sales Charge-Investment A Shares 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%
Maximum Offering Price
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to nearest cent)
per share (Investment A Shares) $ 12.62 $ 12.75 $ 10.58 $ 10.48 $ 12.94 $ 10.99
======== ======== ======== ======== ======== ========
</TABLE>
*Redemption price per share varies by length of time shares are held.
(See Notes which are an integral part of the Financial Statements)
44
<PAGE>
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 1999
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Quality Equity
Growth Income Cardinal Pinnacle Balanced Mid Cap
Fund Fund Fund* Fund Fund Fund
-------- ------- ------ ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 234 $ 223 $ - $ 72 $ 1,585 $ 107
Dividend income 2,322 2,032 939 183 812 621
Securities lending income 30 7 - 1 31 43
-------- ------- ------- ------- -------- -------
Total Income 2,586 2,262 939 256 2,428 771
-------- ------- ------- ------- -------- -------
EXPENSES:
Investment advisory fees 2,223 631 554 193 780 865
Administrative fees 498 142 165 43 175 194
Distribution services - Investment A Shares 135 27 212 18 85 50
Distribution services - Investment C Shares** 30 4 - 8 19 4
Shareholder servicing - Investment C Shares** 10 1 - 3 6 1
Accounting fees 74 23 32 9 32 32
Custodian fees 17 10 14 16 12 10
Trustees' fees 4 2 2 3 2 2
Transfer agent fees 27 14 19 9 10 21
Organization costs - 1 - - - -
Other fees 74 38 56 67 48 43
-------- ------- ------- ------- -------- -------
Total Expenses 3,092 893 1,054 369 1,169 1,222
-------- ------- ------- ------- -------- -------
Less fees voluntarily reduced (179) (75) (31) (15) (95) (99)
-------- ------- ------- ------- -------- -------
Net Expenses 2,913 818 1,023 354 1,074 1,123
-------- ------- ------- ------- -------- -------
Net Investment Income (Loss) (327) 1,444 (84) (98) 1,354 (352)
-------- ------- ------- ------- -------- -------
Realized and Unrealized Gains (Losses) from
Investments and Foreign Currency Transactions:
Net realized gains (losses) from investments
and foreign currency transactions 12,178 4,803 25,599 (73) 5,980 5,438
Net change in unrealized appreciation
from investments and assets and liabilities
denominated in foreign currency 103,221 3,592 43,177 10,240 23,190 6,239
-------- ------- ------- ------- -------- -------
Net realized and unrealized gains from
investments and foreign currency
transactions 115,399 8,395 68,776 10,167 29,170 11,677
-------- ------- ------- ------- -------- -------
Change in net assets resulting
from operations $115,072 $ 9,839 $68,692 $10,069 $30,524 $11,325
======== ======= ======= ======= ======== =======
</TABLE>
* Reflects operations for the period from October 1, 1998 through
January 31, 1999.
**The Cardinal Fund Investment C Shares commenced operations on
October 22, 1998.
(See Notes which are an integral part of the Financial Statements)
45
<PAGE>
Fifth Third Funds
Statements of Operations
For the six months ended January 31, 1999
(Amounts in thousands)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond U.S. Ohio
International Fund Quality Govt. Municipal Tax Free
Equity For Bond Securities Bond Bond
Fund Income Fund Fund Fund Fund
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 449 $ 6,863 $ 3,164 $ 1,275 $ 2,784 $ 4,495
Dividend income 400 215 - - - 104
Securities lending income - 40 29 2 - -
-------- -------- -------- -------- -------- --------
Total Income 849 7,118 3,193 1,277 2,784 4,599
-------- -------- -------- -------- -------- --------
EXPENSES:
Investment advisory fees 789 686 322 129 336 552
Administrative fees 142 224 105 42 109 180
Distribution services - Investment A Shares 88 82 19 9 9 42
Distribution services - Investment C Shares 3 1 2 1 - 3
Shareholder servicing - Investment C Shares - - 1 - - 1
Accounting fees 58 32 23 15 26 42
Custodian fees 26 9 6 4 5 10
Trustees' fees 4 2 2 2 2 2
Transfer agent fees 35 15 12 7 13 22
Organization costs 5 1 1 1 5 -
Other fees 94 39 27 20 25 46
-------- -------- -------- -------- -------- --------
Total Expenses 1,244 1,091 520 230 530 900
-------- -------- -------- -------- -------- --------
Less fees voluntarily reduced (62) (84) (67) (46) (69) (257)
-------- -------- -------- -------- -------- --------
Net Expenses 1,182 1,007 453 184 461 643
-------- -------- -------- -------- -------- --------
Net Investment Income (Loss) (333) 6,111 2,740 1,093 2,323 3,956
-------- -------- -------- -------- -------- --------
Realized and Unrealized Gains (Losses) from
Investments and Foreign Currency Transactions:
Net realized gains from investments and
foreign currency transactions 4,597 2,333 1,994 384 1,487 549
Net change in unrealized appreciation
(depreciation) from investments and
investments and assets and liabilities
denominated in foreign currencies (7,489) 2,152 798 458 1,620 4,768
-------- -------- -------- -------- -------- --------
Net realized and unrealized gains (losses)
and foreign currency (2,892) 4,485 2,792 842 3,107 5,317
-------- -------- -------- -------- -------- --------
Change in net assets resulting
from operations $ (3,225) $10,596 $ 5,532 $ 1,935 $ 5,430 $ 9,273
======== ======== ======== ======== ======== ========
</TABLE>
(See Notes which are an integral part of the Financial Statements)
46
<PAGE>
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quality Growth Fund Equity Income Fund Cardinal Fund
----------------------------- ------------------------------ -----------------------------
Six months Six months Period
Ended Year Ended Year Ended Year
Jan. 31, 1999 Ended Jan. 31, 1999 Ended Jan. 31, 1999 Ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited)* Sept. 30, 1998
------------- ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss) $ (327) $ 434 $ 1,444 $ 2,352 $ (84) $ 2,350
Net realized gains from investment
transactions 12,178 59,514 4,803 15,497 25,599 22,115
Net change in unrealized appreciation
(depreciation) on investments 103,221 4,293 3,592 5,045 43,177 (13,872)
------------ ------------- ------------- ------------- ------------- --------------
Change in net assets resulting from
operations 115,072 64,241 9,839 22,894 68,692 10,593
------------ ------------- ------------- ------------- ------------- --------------
Distributions to Institutional
Shareholders:**
From net investment income - - (1,374) - (14) (271)
In excess of net investment income - - - - - (65)
From net realized gains from
investment transactions (44,404) - (13,249) - (695) (3,387)
Distributions to Investment A
Shareholders:
From net investment income - (469) (109) (2,377) (91) (2,265)
In excess of net investment income - (98) - - - (543)
From net realized gains from
investment transactions (7,704) (33,264) (1,262) (12,092) (8,141) (31,312)
Distributions to Investment C
Shareholders:***
From net investment income - - (7) (5) - -
From net realized gains from
investment transactions (747) (424) (108) (29) (2) -
------------ ------------- ------------- ------------- ------------- --------------
Change in net assets from
shareholder distributions (52,855) (34,255) (16,109) (14,503) (8,943) (37,843)
------------ ------------- ------------- ------------- ------------- --------------
Fund Share (Principal) Transactions:
Proceeds from shares issued 505,790 155,883 154,415 22,229 5,063 19,985
Dividends reinvested 30,076 33,981 14,773 12,237 8,410 35,482
Cost of shares redeemed (464,245) (94,255) (149,005) (11,901) (42,868) (64,561)
------------ ------------- ------------- ------------- ------------- --------------
Change in net assets from
capital transactions 71,621 95,609 20,183 22,565 (29,395) (9,094)
------------ ------------- ------------- ------------- ------------- --------------
Change in net assets 133,838 125,595 13,913 30,956 30,354 (36,344)
Net Assets:
Beginning of period 528,425 402,830 151,372 120,416 258,445 294,789
------------ ------------- ------------- ------------- ------------- --------------
End of period $ 662,263 $528,425 $ 165,285 $151,372 $ 288,799 $258,445
============ ============= ============= ============= ============= ==============
</TABLE>
* Reflects operations for the period from October 1, 1998 through January 31,
1999.
** Institutional Shares commenced operations on August 11, 1998.
*** The Cardinal Fund Investment C Shares commenced operations on October 22,
1998.
(See Notes which are an integral part of the Financial Statements)
47
<PAGE>
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Pinnacle Fund Balanced Fund Mid Cap Fund
----------------------------- ----------------------------- ----------------------------
Six months Six months Six months
Ended Year Ended Year Ended Year
Jan. 31, 1999 Ended Jan. 31, 1999 Ended Jan. 31, 1999 Ended
(Unaudited) July 31, 1998* (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss) $ (98) $ (20) $ 1,354 $ 2,786 $ (352) $ (409)
Net realized gains (losses) from
investment transactions (73) 1,357 5,980 13,331 5,438 29,257
Net change in unrealized appreciation
(depreciation) on investments 10,240 2,924 23,190 (4,158) 6,239 (19,322)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets resulting from
operations 10,069 4,261 30,524 11,959 11,325 9,526
------------- ------------- ------------- ------------- ------------- -------------
Distributions to Institutional
Shareholders:**
From net investment income - - (1,111) - - -
From net realized gains from
investment transactions (657) - (6,302) - (17,251) -
Distributions to Investment A
Shareholders:
From net investment income - - (366) (2,794) - -
From net realized gains from
investment transactions (267) (389) (3,196) (11,108) (2,814) (19,805)
Distributions to Investment C
Shareholders:
From net investment income - - (32) (31) - -
From net realized gains from
investment transactions (43) - (246) (183) (89) (77)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets from
shareholder distributions (967) (389) (11,253) (14,116) (20,154) (19,882)
------------- ------------- ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions:
Proceeds from shares issued 58,381 12,728 156,483 67,400 204,915 50,559
Dividends reinvested 857 372 11,121 13,909 20,149 19,882
Cost of shares redeemed (32,108) (2,773) (143,167) (25,100) (204,862) (27,993)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets from
capital transactions 27,130 10,327 24,437 56,209 20,202 42,448
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets 36,232 14,199 43,708 54,052 11,373 32,092
Net Assets:
Beginning of period 36,471 22,272 177,973 123,921 218,596 186,504
------------- ------------- ------------- ------------- ------------- -------------
End of period $ 72,703 $ 36,471 $ 221,681 $177,973 $ 229,969 $218,596
============= ============= ============= ============= ============= =============
</TABLE>
* Reflects period of operations from January 1, 1998 through July 31, 1998,
which includes operations of the Fifth Third Pinnacle Fund's predecessor fund,
the Pinnacle Fund.
** Institutional Shares commenced operations on August 11, 1998
(See Notes which are an integral part of the Financial Statements)
48
<PAGE>
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund Bond Fund For Income Quality Bond Fund
----------------------------- ------------------------------- -----------------------------
Six months Six months Six months
Ended Year Ended Year Ended Year
Jan. 31, 1999 Ended Jan. 31, 1999 Ended Jan. 31, 1999 Ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss) $ (333) $ 967 $ 6,111 $ 9,445 $ 2,740 $ 5,451
Net realized gains from
investment transactions 4,597 1,150 2,333 2,652 1,994 2,228
Net change in unrealized
appreciation (depreciation)
on investments (7,489) 15,840 2,152 (1,872) 798 (1,186)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets resulting
from operations (3,225) 17,957 10,596 10,225 5,532 6,493
------------- ------------- ------------- ------------- ------------- -------------
Distributions to Institutional
Shareholders:*
From net investment income (3,098) - (5,338) - (2,548) -
From net realized gains from
investment transactions (836) - (3,333) - (1,135) -
Distributions to Investment A
Shareholders:
From net investment income (97) (7,328) (777) (9,598) (205) (5,493)
From net realized gains from
investment transactions (41) (3,565) (1,215) (688) (97) -
Distributions to Investment C
Shareholders:
From net investment income (3) (12) (8) (6) (10) (11)
From net realized gains from
investment transactions (1) (6) (7) (1) (6) -
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets from
shareholder distributions (4,076) (10,911) (10,678) (10,293) (4,001) (5,504)
------------- ------------- ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions:
Proceeds from shares issued 162,384 17,767 310,959 47,089 126,291 29,415
Dividends reinvested 2,980 8,420 2,304 942 2,247 3,177
Cost of shares redeemed (154,875) (21,583) (241,690) (16,776) (116,243) (17,380)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets from
capital transactions 10,489 4,604 71,573 31,255 12,295 15,212
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets 3,188 11,650 71,491 31,187 13,826 16,201
Net Assets:
Beginning of period 163,588 151,938 188,301 157,114 108,193 91,992
------------- ------------- ------------- ------------- ------------- -------------
End of period $ 166,776 $163,588 $ 259,792 $188,301 $ 122,019 $108,193
============= ============= ============= ============= ============= =============
</TABLE>
* Institutional Shares commenced operations on August 11, 1998.
(See Notes which are an integral part of the Financial Statements)
49
<PAGE>
Fifth Third Funds
Statements of Changes in Net Assets
(Amounts in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government
Securities Fund Municipal Bond Fund Ohio Tax Free Bond Fund
------------------------------ ---------------------------- -----------------------------
Six months Six months Six months
Ended Year Ended Year Ended Year
Jan. 31, 1999 Ended Jan. 31, 1999 Ended Jan. 31, 1999 Ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 1,093 $ 2,201 $ 2,323 $ 4,401 $ 3,956 $ 7,296
Net realized gains from
investment transactions 384 359 1,487 1,788 549 1,120
Net change in unrealized
appreciation (depreciation)
on investments 458 (51) 1,620 (1,726) 4,768 (935)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets resulting
from operations 1,935 2,509 5,430 4,463 9,273 7,481
------------- ------------- ------------- ------------- ------------- -------------
Distributions to Institutional
Shareholders:*
From net investment income (1,024) - (2,320) - (3,560) -
From net realized gains from
investment transactions - - (2,095) - (1,047) -
Distributions to Investment A
Shareholders:
From net investment income (122) (2,189) (4) (4,470) (448) (7,297)
In excess of net investment
income - - - (12) - (2)
From net realized gains from
investment transactions - - (4) (780) (144) (664)
Distributions to Investment C
Shareholders:
From net investment income (4) (3) - - (12) (14)
From net realized gains from
investment transactions - - - - (4) (2)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets from
shareholder distributions (1,150) (2,192) (4,423) (5,262) (5,215) (7,979)
------------- ------------- ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions:
Proceeds from shares issued 47,120 7,520 124,271 33,225 191,745 42,650
Dividends reinvested 557 1,061 2,105 792 1,703 1,647
Cost of shares redeemed (40,882) (9,720) (121,022) (17,512) (178,335) (23,297)
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets from
capital transactions 6,795 (1,139) 5,354 16,505 15,113 21,000
------------- ------------- ------------- ------------- ------------- -------------
Change in net assets 7,580 (822) 6,361 15,706 19,171 20,502
Net Assets:
Beginning of period 41,668 42,490 117,333 101,627 189,550 169,048
------------- ------------- ------------- ------------- ------------- -------------
End of period $ 49,248 $ 41,668 $ 123,694 $117,333 $ 208,721 $189,550
============= ============= ============= ============= ============= =============
</TABLE>
* Institutional Shares commenced operations on August 11, 1998
(See Notes which are an integral part of the Financial Statements)
50
<PAGE>
Fifth Third Funds
Statements of Cash Flow
(Amounts in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP FUND QUALITY BOND FUND
-------------------------------- ------------------------------
Six Months Six Months
Ended Year Ended Year
Jan. 31, 1999 Ended Jan. 31, 1999 Ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Cash Flows from Operating Activities:
Total investment income $ 771 $ 1,773 $ 3,193 $ 6,192
Net expenses (1,123) (2.182) (453) (741)
------------ ------------- ------------ -------------
Net investment income (loss) (352) (409) 2,740 5,451
------------ ------------- ------------ -------------
Adjustments to reconcile net investment income to net cash
provided (used) by operating activities:
Amortization of discount/premium - - 101 73
Change in interest and dividends receivable 36 (3) (53) (206)
Change in accrued expenses, other payables, prepaid
expenses, and other assets - 11 (7) (15)
------------ ------------- ------------ -------------
Total adjustments 36 8 41 (148)
------------ ------------- ------------ -------------
Net cash provided (used) by operating activities (316) (401) 2,781 5,303
Cash Flows from Investing Activities:
Proceeds from sales of investments 613,552 1,744,002 1,989,388 3,013,994
Purchases of investments (613,432) (1,766,067) (2,000,321) (3,029,012)
Net purchases of short-term investments with cash received
as collateral from securities lending 51,874 (63,660) 20,937 (2,049)
------------ ------------- ------------ -------------
Net cash provided (used) by investing activities 51,994 (85,725) 10,004 (17,067)
Cash Flows from Financing Activities:
Proceeds from shares issued 184,829 50,468 125,473 29,406
Cost of shares redeemed (204,802) (27,996) (116,263) (17,363)
Distributions paid to shareholders (6) (19,882) (3,306) (5,504)
Dividends reinvested 20,149 19,882 2,247 3,177
Net collateral received from securities lending (51,874) 63,660 (20,937) 2,049
------------ ------------- ------------ -------------
Net cash provided (used) by financing activities (51,704) 86,132 (12,786) 11,765
Net increase (decrease) in cash (26) 6 (1) 1
Cash at beginning of period 1 (5) 1 -
------------ ------------- ------------ -------------
Cash at end of period $ (25) $ (1) $ - $ 1
============ ============= ============ =============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
51
<PAGE>
Fifth Third Funds
Notes to Financial Statements
January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
(1) Organization
Fifth Third Funds, formerly known as the Fountain Square Funds (the "Trust"), is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company. At January 31, 1999 the
Trust consisted of sixteen separate investment portfolios.
The accompanying financial statements relate only to the following Funds:
Portfolio Name
- ---------------------------------------------------------------------------
Fifth Third Quality Growth Fund ("Quality Growth Fund")
Fifth Third Equity Income Fund ("Equity Income Fund")
Fifth Third Cardinal Fund
Fifth Third Pinnacle Fund ("Pinnacle Fund")
Fifth Third Balanced Fund ("Balanced Fund")
Fifth Third Mid Cap Fund ("Mid Cap Fund")
Fifth Third International Equity Fund ("International Equity Fund")
Fifth Third Bond Fund For Income ("Bond Fund For Income")
Fifth Third Quality Bond Fund ("Quality Bond Fund")
Fifth Third U.S. Government Securities Fund ("Government Securities Fund")
Fifth Third Municipal Bond Fund ("Municipal Bond Fund")
Fifth Third Ohio Tax Free Bond Fund ("Ohio Tax Free Fund")
The Funds each issue three classes of shares: Institutional, Investment A Shares
and Investment C Shares. The Investment A Shares are subject to initial sales
charges imposed at the time of purchase, in accordance with the Fund's
prospectus. Certain redemptions of Investment C Shares made within one year of
purchase are subject to contingent deferred sales charges in accordance with the
Fund's prospectus. Each class of shares for each Fund has identical rights and
privileges except with respect to Administrative Services fees paid by
Investment C Shares, 12b-1 fees paid by Investment A Shares and Investment C
Shares, voting rights on matters affecting a single class of shares and the
exchange privileges of each class of shares. The Institutional Shares were first
offered for sale to the public on September 21, 1998. As of January 8, 1998, all
Investment C Shares of Municipal Bond Fund were redeemed. Municipal Bond Fund
Investment C Shares continue to be open for investment with an offering price
equal to Municipal Bond Fund Investment A Shares, however, as of January 31,
1999, there were no shareholders of the Municipal Bond Fund Investment C Shares.
(2) Reorganizations
The Trust entered an Agreement and Plan of Reorganization with the Pinnacle Fund
pursuant to which all of the assets and liabilities of the Pinnacle Fund were
transferred to a new portfolio of the Trust (the Fifth Third Pinnacle Fund). The
reorganization, which qualified as a tax-free exchange for federal income tax
purposes, was approved by shareholders of the Pinnacle Fund at a special
shareholder meeting held on February 27, 1998 and consummated on March 6, 1998.
Immediately before and after the reorganization the Pinnacle Fund and the Fifth
Third Pinnacle Fund, respectively, had shares outstanding of 809, Net Assets of
$24,714, Net Asset Value of 30.56, and Unrealized Appreciation of $9,452
(amounts in thousands except Net Asset Value).
The Trust entered into an Agreement and Plan of Reorganization and Liquidation
with The Cardinal Group pursuant to which all of the assets and liabilities of
each Cardinal Group Portfolio were transferred to a portfolio of the Trust in
exchange for shares of the corresponding portfolio of the Trust. The Cardinal
Government Obligations Fund transferred its assets and liabilities to the Bond
Fund For Income. The Cardinal Balanced Fund transferred its assets and
liabilities to the Balanced Fund. The
52
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
Cardinal Aggressive Growth Fund transferred its assets and liabilities to the
Mid Cap Fund. The Cardinal Fund transferred its assets and liabilities to the
Fifth Third Cardinal Fund. The reorganization, which qualified as a tax-free
exchange for federal income purposes, was approved by shareholders of The
Cardinal Group at a special shareholder meeting held on July 24, 1998 and
consummated on September 21, 1998. The following is a summary of shares
outstanding, net assets, net asset value per share and unrealized appreciation
immediately before and after the reorganization for the Bond Fund For Income,
the Balanced Fund, the Mid Cap Fund and the Fifth Third Cardinal Fund:
<TABLE>
<CAPTION>
After
Before Reorganization Reorganization
--------------------------- ----------------
Cardinal
Government Fifth Third Fifth Third
Obligations Bond Fund Bond Fund
Fund For Income For Income
--------------------------- ----------------
<S> <C> <C> <C>
Shares (000) 10,758 11,894 22,652
Net Assets (000) $88,802 $193,229 $282,031
Net Asset Value $8.25 $12.45 $12.45
Unrealized Appreciation (000) $1,412 $5,310 $6,722
<CAPTION>
After
Before Reorganization Reorganization
--------------------------- ----------------
Cardinal Fifth Third Fifth Third
Fund Fund Fund
--------------------------- ----------------
<S> <C> <C> <C>
Shares (000) 1,282 11,901 13,183
Net Assets (000) $15,632 $171,175 $186,807
Net Asset Value $12.19 $14.17 $14.17
Unrealized Appreciation (000) $3,071 $17,117 $20,188
<CAPTION>
After
Before Reorganization Reorganization
--------------------------- ----------------
Cardinal
Aggressive Fifth Third Fifth Third
Growth Mid Cap Mid Cap
Fund Fund Fund
--------------------------- ----------------
<S> <C> <C> <C>
Shares (000) 833 13,387 14,220
Net Assets (000) $9,980 $198,539 $208,519
Net Asset Value $11.99 $14.66 $14.66
Unrealized Appreciation (000) $3,054 $19,575 $22,629
<CAPTION>
After
Before Reorganization Reorganization
--------------------------- ----------------
Fifth Third Fifth Third
Cardinal Cardinal Cardinal
Fund Fund Fund
--------------------------- ----------------
<S> <C> <C> <C>
Shares (000) 17,572 0 17,572
Net Assets (000) $263,745 $0 $263,745
Net Asset Value $15.01 $0 $15.01
Unrealized Appreciation (000) $113,875 $0 $113,875
</TABLE>
(3) Special Meeting of Shareholders
A Special Meeting of Shareholders of the Cardinal Group was held on July 24,
1998. At the meeting, shareholders voted on the approval of the Agreement and
Plan of Reorganization and Liquidation by and between Fifth Third Funds, Fifth
Third Bank, The Cardinal Group and Cardinal Management Corp. ("CMC"). The
results of the votes to merge the Cardinal Government Obligations Fund with the
Bond
53
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Fund For Income Fund, the Cardinal Balanced Fund with the Balanced Fund, the
Cardinal Aggressive Growth Fund with the Mid Cap Fund and the Cardinal Fund with
the Fifth Third Cardinal Fund by shareholders were as follows:
FUND FOR AGAINST ABSTAIN
---- --- ------- -------
Bond Fund For Income 8,336,484 453,169 557,747
Balanced Fund 1,070,104 87,058 56,097
Mid Cap 660,500 11,062 13,789
Cardinal Fund 12,244,223 761,523 624,612
(4) 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 generally accepted accounting principles. The
preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of income and expenses
for the period. Actual results could differ from those estimates.
A. Securities Valuations--Investments in equity securities generally are
determined on the basis of market price. Bonds and other fixed income securities
are generally valued at market prices by using an independent pricing service.
B. 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 the Trust's 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 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.
C. 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, the pro rata amortization of premium or 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.
D. Foreign Currency Translation--The Trust 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
54
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
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
value of assets and liabilities, including investments in securities, resulting
from changes in the currency exchange rates.
E. Forward Currency Contracts--The International Equity Fund may enter into a
forward currency contract ("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. A 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.
At January 31, 1999, the International Equity Fund had outstanding forward
foreign currency exchange contracts as set forth below (amounts in thousands
except unrealized appreciation (depreciation)).
Contract Unrealized
Delivery Amount Contract Value Appreciation
Date (Local Currency) U.S. Dollar (Depreciation)
- --------------------------------------------------------------------------------
British Sterling Pounds
Long Contracts
2/12/99 932 $1,542 $(10,627)
Short Contracts
2/12/99 259 429 3,627
Euro
Long Contracts
3/11/99 2,213 2,574 (52,040)
Short Contracts
3/11/99 997 1,170 33,654
French Franc
Long Contracts
2/4/99 2,309 405 (4,776)
Japanese Yen
Long Contracts
2/1/99 5,163 45 (918)
2/4/99 356,530 3,107 (39,791)
2/8/99 349,117 3,027 (23,268)
2/26/99 77,852 674 (3,542)
3/10/99 105,187 913 (5,037)
3/17/99 379,270 3,298 (22,171)
Short Contracts
2/4/99 356,530 3,044 (23,110)
2/8/99 349,117 3,022 17,829
2/26/99 77,852 652 (19,232)
3/10/99 60,941 516 (9,359)
55
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
Contract Unrealized
Delivery Amount Contract Value Appreciation
Date (Local Currency) U.S. Dollar (Depreciation)
- --------------------------------------------------------------------------------
Singapore Dollar
Long Contracts
3/3/99 992 $ 606 $(17,883)
3/8/99 1,037 634 (18,821)
4/7/99 877 537 (15,725)
Short Contracts
2/2/99 1,718 1,020 5,423
2/4/99 504 298 186
3/3/99 992 607 19,033
3/8/99 1,037 635 20,186
4/7/99 877 538 16,888
Spanish Peseta
Long Contracts
2/12/99 55,751 398 (16,916)
Short Contracts
2/12/99 194,876 1,373 41,965
US Dollar
Long Contracts
2/2/99 1,020 1,020 -
2/4/99 298 298 -
3/31/99 1,170 1,170 -
Short Contracts
2/1/99 45 45 -
3/11/99 2,574 2,574 -
3/17/99 3,298 3,298 -
F. Foreign Currency Commitments--The International Equity Fund may enter into
foreign currency commitments for the delayed delivery of securities of foreign
currency exchange transactions. Risks may arise upon entering into these
transactions from the potential inability of counterparties to meet the terms of
their commitments and form 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.
G. Option Contracts--The Funds may write or purchase option contracts with the
exception of the Pinnacle Fund, the Municipal Bond Fund and the Ohio Tax Free
Bond Fund. A written option obligates the Fund to deliver (a call), or to
receive (a put), the contracted amount of securities upon exercise by the holder
of the option. The value of the option contract is recorded as a liability, and
unrealized gain or loss is measured by the difference between the current value
and the premium received. The Fund had no written options outstanding at January
31, 1999.
H. When-Issued and Delayed Delivery Transactions--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.
56
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
I. Dividends to Shareholders--Dividends from net investment income are declared
and paid monthly for the Quality Growth Fund, the Equity Income Fund, the Bond
Fund For Income, the Quality Bond Fund, the U.S. Government Securities Fund, the
Municipal Bond Fund, and the Ohio Tax Free Bond Fund. Dividends from net
investment income are declared and paid quarterly for the Fifth Third Cardinal
Fund, the Mid Cap Fund, the Balanced Fund and the Pinnacle Fund. Dividends from
net investment income are declared and paid annually for the International
Equity Fund. Distributable net realized gains, if any, are declared and
distributed at least annually.
Dividends from net investment income and from net realized capital gains are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for mortgage-backed 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.
Dividends and distributions to shareholders which exceed net investment income
and net realized gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income or distributions in
excess of net realized gains. To the extent they exceed net investment income
and net realized gains for tax purposes, they are reported as distribution of
capital.
J. 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 gain sufficient to relieve it from all, or
substantially all, federal income taxes.
K. Organizational Costs--The costs incurred by each Fund with respect to
registration of their shares in their first fiscal year, excluding the initial
expense of registering their shares, have been deferred and are being amortized
using the straight-line method not to exceed a period of five years from each
Fund's commencement date.
L. Lending Portfolio Securities--To generate additional income, the Funds, may
lend up to one-third of securities in which they are invested pursuant to
agreements requiring that the loan be continuously secured 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 market value plus accrued interest on
the securities lent. The Funds continue to earn interest and dividends on
securities lent while simultaneously seeking to earn interest on the investment
of collateral.
When cash is received as collateral for securities loaned, the Funds may invest
such cash in 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. In addition, the
short-term securities purchased with the cash collateral are included in the
accompanying schedules of portfolio investments. 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 Board of
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
57
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
the borrower at any time, and are, therefore, not considered to be illiquid
investments. According to GAAP, a statement of cash flows is presented if the
Fund lent out, on average, more than 10% of net assets during the year. Under
this guideline, a statement of cash flows is presented for the Mid Cap Fund and
the Quality Bond Fund. As of January 31, 1999, the following Funds had
securities with the following market values on loan (Amounts in Thousands):
Market
Market Value
Value of of Loaned
Collateral Securities
----------------------
Quality Growth Fund $46,409 $44,314
Pinnacle Fund $1,087 $901
Equity Income Fund $5,671 $5,579
Balanced Fund $22,079 $21,343
Mid Cap Fund $51,874 $50,836
Bond Fund For Income $23,955 $23,471
Quality Bond Fund $20,937 $20,446
U.S. Government Securities Fund $4,228 $4,125
The loaned securities were fully collateralized by cash, U.S. Government
securities, short-term corporate notes and repurchase agreements as of
January 31, 1999.
(5) Shares of Beneficial Interest
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Quality Growth Fund Equity Income Fund Cardinal Fund
------------------------------ ------------------------------- -----------------------------
Six months Six months Period
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) Sept. 30, 1998
------------- ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Institutional Shares:*
Shares issued $ 494,524 $ - $ 146,624 $ - $ 217 $ 4,380
Dividends reinvested 21,625 - 13,288 - 707 3,721
Shares redeemed (24,218) - (11,304) - (12,060) (6,893)
------------- ------------- ------------- ------------- ------------- --------------
Institutional Shares $ 491,931 $ - $ 148,608 $ - $ (11,136) $ (1,208)
------------- ------------- ------------- ------------- ------------- --------------
Investment A Shares:
Shares issued $ 10,552 $ 150,594 $ 7,253 $ 21,208 $ 4,313 $ 15,605
Dividends reinvested 7,704 33,557 1,370 12,203 7,699 31,761
Shares redeemed (438,338) (93,341) (137,516) (11,702) (30,808) (57,668)
------------- ------------- ------------- ------------- ------------- --------------
Investment A Shares $ (420,082) $ 90,810 $ (128,893) $ 21,709 $ (18,796) $ (10,302)
------------- ------------- ------------- ------------- ------------- --------------
Investment C Shares:
Shares issued $ 714 $ 5,289 $ 538 $ 1,021 $ 533 $ -
Dividends reinvested 747 424 115 34 4 -
Shares redeemed (1,689) (914) (185) (199) - -
------------- ------------- ------------- ------------- ------------- --------------
Investment C Shares $ (228) $ 4,799 $ 468 $ 856 $ 537 $ -
------------- ------------- ------------- ------------- ------------- --------------
Total net increase from
capital transactions $ 71,621 $ 95,609 $ 20,183 $ 22,565 $ (29,395) $ (9,094)
============ ============= ============= ============= ============= ==============
</TABLE>
*Institutional Shares commenced operations on August 11, 1998.
58
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Quality Growth Fund Equity Income Fund Cardinal Fund
--------------------------- --------------------------- ---------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) Sept. 30, 1998
------------ ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
Institutional Shares:*
Shares issued 25,055 -- 9,863 -- 13 261
Dividends reinvested 1,102 -- 891 -- 42 242
Shares redeemed (1,224) -- (751) -- (739) (399)
------------ ------------- ------------- ------------ ------------- -------------
Institutional Shares 24,933 -- 10,003 -- (684) 104
------------ ------------- ------------- ------------ ------------- -------------
Investment A Shares:
Shares issued 533 7,816 485 1,375 257 961
Dividends reinvested 393 1,875 92 848 458 2,062
Shares redeemed (22,178) (4,806) (9,259) (776) (1,851) (3,449)
------------ ------------- ------------- ------------ ------------- -------------
Investment A Shares (21,252) 4,885 (8,682) 1,447 (1,136) (426)
------------ ------------- ------------- ------------ ------------- -------------
Investment C Shares:**
Shares issued 36 275 35 67 31 --
Dividends reinvested 38 24 8 2 -- --
Shares redeemed (87) (47) (12) (12) -- --
------------ ------------- ------------- ------------ ------------- -------------
Investment C Shares (13) 252 31 57 31 --
------------ ------------- ------------- ------------ ------------- -------------
Total net increase from share
transactions 3,668 5,137 1,352 1,504 (1,789) (322)
============ ============= ============= ============ ============= =============
*Institutional Shares commenced operations on August 11, 1998.
<CAPTION>
Pinnacle Fund Balanced Fund Mid Cap Fund
--------------------------- ---------------------------- -----------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998* (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------ ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Institutional Shares:**
Shares issued $ 39,111 $ -- $ 132,728 $ -- $ 195,513 $ --
Dividends reinvested 547 -- 7,220 -- 17,251 --
Shares redeemed (1,362) -- (11,850) -- (10,619) --
------------ ------------- ------------- ------------- ------------- --------------
Institutional Shares $ 38,296 $ -- $ 128,098 $ -- $ 202,145 $ --
------------ ------------- ------------- ------------- ------------- --------------
Investment A Shares:
Shares issued $ 15,824 $ 11,774 $ 22,764 $ 63,734 $ 9,294 $ 49,749
Dividends reinvested 267 372 3,623 13,694 2,809 19,805
Shares redeemed (30,480) (2,732) (130,457) (24,887) (193,934) (27,793)
------------ ------------- ------------- ------------- ------------- --------------
Investment A Shares $ (14,389) $ 9,414 $ (104,070) $ 52,541 $ (181,831) $ 41,761
------------ ------------- ------------- ------------- ------------- --------------
Investment C Shares:
Shares issued $ 3,446 $ 954 $ 991 $ 3,666 $ 108 $ 810
Dividends reinvested 43 -- 278 215 89 77
Shares redeemed (266) (41) (860) (213) (309) (200)
------------ ------------- ------------- ------------- ------------- --------------
Investment C Shares $ 3,223 $ 913 $ 409 $ 3,668 $ (112) $ 687
------------ ------------- ------------- ------------- ------------- --------------
Total net increase from capital
transactions $ 27,130 $ 10,327 $ 24,437 $ 56,209 $ 20,202 $ 42,448
============ ============= ============= ============= ============= ==============
</TABLE>
*Reflects period of operations from January 1, 1998 through July 31, 1998,
which includes operations of the Fifth Third Pinnacle Fund's predecessor fund,
the Pinnacle Fund.
**Institutional Shares commenced operations on August 11, 1998.
59
<PAGE>
Fifth Third Funds
Notes to Financial Statements
January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pinnacle Fund Balanced Fund Mid Cap Fund
------------------------------- ----------------------------- ----------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998* (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- -------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
Institutional Shares:**
Shares issued 1,226 - 9,139 - 12,538 -
Dividends reinvested 17 - 487 - 1,172 -
Shares redeemed (42) - (779) - (713) -
------------- -------------- ------------- ------------- ------------- -------------
Institutional Shares 1,201 - 8,847 - 12,997 -
------------- -------------- ------------- ------------- ------------- -------------
Investment A Shares:
Shares issued 483 370 1,615 4,237 669 2,852
Dividends reinvested 8 12 244 960 191 1,234
Shares redeemed (958) (87) (8,822) (1,649) (12,265) (1,606)
------------- -------------- ------------- ------------- ------------- -------------
Investment A Shares (467) 295 (6,963) 3,548 (11,405) 2,480
------------- -------------- ------------- ------------- ------------- -------------
Investment C Shares:
Shares issued 104 30 73 243 8 47
Dividends reinvested 1 - 19 15 6 5
Shares redeemed (8) (1) (57) (14) (21) (12)
------------- -------------- ------------- ------------- ------------- -------------
Investment C Shares 97 29 35 244 (7) 40
------------- -------------- ------------- ------------- ------------- -------------
Total net increase from share
transactions 831 324 1,919 3,792 1,585 2,520
============= ============== ============= ============= ============= =============
</TABLE>
* Reflects period of operations from January 1, 1998 through July 31, 1998,
which includes operations of the Fifth Third Pinnacle Fund's predecessor fund,
the Pinnacle Fund.
**Institutional Shares commenced operations on August 11, 1998.
<TABLE>
<CAPTION>
International Equity Fund Bond Fund For Income Quality Bond Fund
------------------------------ ----------------------------- -----------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Institutional Shares:*
Shares issued $ 155,313 $ - $ 201,811 $ - $ 123,384 $ -
Dividends reinvested 2,874 - 332 - 1,929 -
Shares redeemed (4,224) - (11,186) - (14,659) -
------------- ------------- ------------- ------------- ------------- -------------
Institutional Shares $ 153,963 $ - $ 190,957 $ - $ 110,654 $ -
------------- ------------- ------------- ------------- ------------- -------------
Investment A Shares:
Shares issued $ 7,005 $ 17,630 $ 108,869 $ 46,834 $ 2,453 $ 29,113
Dividends reinvested 102 8,402 1,957 936 302 3,166
Shares redeemed (150,568) (21,499) (230,444) (16,738) (101,535) (17,260)
------------- ------------- ------------- ------------- ------------- -------------
Investment A Shares $ (143,461) $ 4,533 $ (119,618) $ 31,032 $ (98,780) $ 15,019
------------- ------------- ------------- ------------- ------------- -------------
Investment C Shares:
Shares issued $ 66 $ 137 $ 279 $ 255 $ 454 $ 302
Dividends reinvested 4 18 15 6 16 11
Shares redeemed (83) (84) (60) (38) (49) (120)
------------- ------------- ------------- ------------- ------------- -------------
Investment C Shares $ (13) $ 71 $ 234 $ 223 $ 421 $ 193
------------- ------------- ------------- ------------- ------------- -------------
Total net increase from
capital transactions $ 10,489 $ 4,604 $ 71,573 $ 31,255 $ 12,295 $ 15,212
============= ============= ============= ============= ============= =============
</TABLE>
*Institutional Shares commenced operations on August 11, 1998.
60
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund Bond Fund For Income Quality Bond Fund
----------------------------- ----------------------------- -----------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
Institutional Shares:*
Shares issued 13,549 - 17,002 - 12,292 -
Dividends reinvested 242 - 27 - 191 -
Shares redeemed (354) - (898) - (1,446) -
------------- ------------- ------------- ------------- ------------- -------------
Institutional Shares 13,437 - 16,131 - 11,037 -
------------- ------------- ------------- ------------- ------------- -------------
Investment A Shares:
Shares issued 601 1,493 8,322 3,843 242 2,937
Dividends reinvested 8 798 160 77 30 320
Shares redeemed (13,159) (1,886) (18,769) (1,372) (10,142) (1,745)
------------- ------------- ------------- ------------- ------------- -------------
Investment A Shares (12,550) 405 (10,287) 2,548 (9,870) 1,512
------------- ------------- ------------- ------------- ------------- -------------
Investment C Shares:
Shares issued 6 11 24 21 45 30
Dividends reinvested - 2 1 - 2 1
Shares redeemed (7) (7) (5) (3) (5) (12)
------------- ------------- ------------- ------------- ------------- -------------
Investment C Shares (1) 6 20 18 42 19
------------- ------------- ------------- ------------- ------------- -------------
Total net increase from
share transactions 886 411 5,864 2,566 1,209 1,531
============= ============= ============= ============= ============= =============
</TABLE>
*Institutional Shares commenced operations on August 11, 1998.
<TABLE>
<CAPTION>
U.S. Government Ohio Tax Free
Securities Fund Municipal Bond Fund Bond Fund
----------------------------- ----------------------------- ---------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Institutional Shares:*
Shares issued $ 44,850 $ - $ 123,743 $ - $ 186,553 $ -
Dividends reinvested 431 - 2,097 - 1,095 -
Shares redeemed (2,366) - (3,040) - (7,846) -
------------- ------------- ------------- ------------- ------------- -------------
Institutional Shares $ 42,915 $ - $ 122,800 $ - $ 179,802 $ -
------------- ------------- ------------- ------------- ------------- -------------
Investment A Shares:
Shares issued $ 2,123 $ 7,450 $ 528 $ 33,225 $ 4,865 $ 42,242
Dividends reinvested 122 1,058 8 792 592 1,632
Shares redeemed (38,482) (9,689) (117,982) (17,501) (170,473) (23,210)
------------- ------------- ------------- ------------- ------------- -------------
Investment A Shares $ (36,237) $ (1,181) $ (117,446) $ 16,516 $ (165,016) $ 20,664
------------- ------------- ------------- ------------- ------------- -------------
Investment C Shares:
Shares issued $ 147 $ 70 $ - $ - $ 327 $ 408
Dividends reinvested 4 3 - - 16 15
Shares redeemed (34) (31) - (11) (16) (87)
------------- ------------- ------------- ------------- ------------- -------------
Investment C Shares $ 117 $ 42 $ - $ (11) $ 327 $ 336
------------- ------------- ------------- ------------- ------------- -------------
Total net increase from
capital transactions $ 6,795 $ (1,139) $ 5,354 $ 16,505 $ 15,113 $ 21,000
============= ============= ============= ============= ============= =============
</TABLE>
*Institutional Shares commenced operations on August 11, 1998.
61
<PAGE>
Fifth Third Funds
Notes to Financial Statements (Continued)
January 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Ohio Tax Free
Securities Fund Municipal Bond Fund Bond Fund
------------------------------- ------------------------------ ------------------------------
Six months Six months Six months
ended ended ended
Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended Jan. 31, 1999 Year ended
(Unaudited) July 31, 1998 (Unaudited) July 31, 1998 (Unaudited) July 31, 1998
-------------- ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
Institutional Shares:*
Shares issued 4,530 - 10,069 - 18,056 -
Dividends reinvested 43 - 172 - 106 -
Shares redeemed (236) - (246) - (749) -
-------------- ------------- ------------- ------------- ------------- --------------
Institutional Shares 4,337 - 9,995 - 17,413 -
-------------- ------------- ------------- ------------- ------------- --------------
Investment A Shares:
Shares issued 214 761 43 2,708 467 4,103
Dividends reinvested 12 108 1 64 57 159
Shares redeemed (3,895) (990) (9,608) (1,426) (16,517) (2,256)
-------------- ------------- ------------- ------------- ------------- --------------
Investment A Shares (3,669) (121) (9,564) 1,346 (15,993) 2,006
-------------- ------------- ------------- ------------- ------------- --------------
Investment C Shares:
Shares issued 15 7 - - 31 40
Dividends reinvested - - - - 2 1
Shares redeemed (3) (3) - (1) (2) (8)
-------------- ------------- ------------- ------------- ------------- --------------
Investment C Shares 12 4 - (1) 31 33
-------------- ------------- ------------- ------------- ------------- --------------
Total net increase from
share transactions 680 (117) 431 1,345 1,451 2,039
============== ============= ============= ============= ============= ==============
</TABLE>
*Institutional Shares commenced operations on August 11, 1998.
(6) Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee--Fifth Third Bank, the Trust's investment Advisor (the
"Advisor"), receives for its services an annual investment advisory fee based on
a percentage of each Fund's average daily net assets.
Morgan Stanley Asset Management, Inc. is the International Equity Fund's sub-
Advisor (the "Sub-Advisor"). The Advisor compensates the Sub-Advisor at a rate
based on the International Equity Fund's average daily net assets.
Administrative Fee--BISYS Fund Services ("BISYS") serves as the Trust's
administrator. The administrator generally assists in all aspects of the Trust's
administration and operation including providing the Fund with certain
administrative personnel and services necessary to operate the Fund. Pursuant to
a separate agreement with BISYS, Fifth Third Bank performs sub-administrative
services on behalf of the Fund including providing certain administrative
personnel and services necessary to operate the Fund, for which it receives a
fee from BISYS computed daily as a percentage of the daily net assets of the
Fund. Under the terms of the administration agreement, BISYS' fees are computed
daily as a percentage of the average net assets of the Trust for the period.
Administration fees are computed at 0.20% of first $1 billion of net assets of
the Trust, 0.18% of net assets of the Trust between $1 billion and $2 billion,
and 0.17% of more than $2 billion of net assets of the Trust.
Distribution Services Fee-BISYS serves as the Trust's principal distributor (the
"Distributor"). In accordance with Rule 12b-1 under the 1940 Act, the Trust
entered into a Distribution Plan with the Distributor with respect to Investment
A Shares and Investment C Shares. Under the Distribution Plan,
62
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
the Funds may pay a fee to the Distributor. These fees may be used by BISYS to
pay banks, including the investment adviser, broker dealers and other
institutions, or to reimburse BISYS or its affiliates for administration,
distribution and shareholder service assistance in connection with the
distribution of the Fund.
Administrative Services Fee-Effective April 23, 1996, the Trust entered into an
Administrative Services Agreement with Fifth Third Bank with respect to
Investment C Shares. Under the Plan, the Funds may make payments up to 0.25% of
the average daily net asset value of Investment C Shares in exchange for certain
administrative services for shareholders and for the maintenance of shareholder
accounts.
Transfer and Dividend Disbursing Agent, Accounting and Custody Fees-Fifth Third
Bank serves as transfer and dividend disbursing agent for the Funds for which it
receives a fee. Fifth Third Bank handles the execution of the transfer and
dividend disbursing agent functions.
Fifth Third Bank also maintains the Fund's accounting records except with
respect to the International Equity Fund for which it receives a fee. The fee is
based on the level of each Fund's average net assets for the period, plus out-
of-pocket expenses. BISYS Fund Services provides accounting services for the
International Equity Fund for a fee based on average net assets for the period.
Fifth Third Bank is the Fund's custodian for which it receives a fee. The fee is
based on the level of each Fund's average net assets for the period, plus out-
of-pocket expenses.
Certain Officers and Trustees of the Trust are Officers and Trustees of the
above companies but are not paid any fees directly by the Trust for serving as
Officers and Trustees of the Trust.
<TABLE>
<CAPTION>
Quality Equity
Growth Income Cardinal Pinnacle Balanced Mid Cap
Fund Fund Fund Fund Fund Fund
-------- -------- --------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
(Amounts in thousands)
Investment Advisory Fees:
- ----------------------------------
Annual fee before voluntary fee
reductions (percentage of average
net assets) 0.80% 0.80% 0.60% 0.80% 0.80% 0.80%
Administrative Fees:
Voluntary fee reductions $ 134 $ 64 $ 31 $ 10 $ 78 $ 83
Distribution Services Fees:
Annual fee before voluntary fee
reductions (percentage of average
net assets) Investment A Shares 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Investment C Shares 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Voluntary fee reductions - Investment A Shares $ 35 $ 10 - $ 2 $ 11 $ 15
Voluntary fee reductions - Investment C Shares $ 10 $ 1 - $ 3 $ 6 $ 1
Administrative Services Fees:
Annual fee before voluntary fee
reductions (percentage of average
net assets) Investment C Shares 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
</TABLE>
63
<PAGE>
Fifth Third Funds
Notes to Financial Statements (continued)
January 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Ohio
International Bond Quality Government Municipal Tax Free
Equity Fund For Bond Securities Bond Bond
Fund Income Fund Fund Fund Fund
---------- -------- ------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
(Amounts in thousands)
Investment Advisory Fees:
- ----------------------------------------------
Annual fee before voluntary fee
reductions (percentage of average
net assets) 1.00% 0.55% 0.55% 0.55% 0.55% 0.55%
Voluntary fee reductions - - - $ 19 - -
Administrative Fees:
Voluntary fee reductions $ 1 $ 70 $ 59 $ 24 $ 61 $ 101
Distribution Services Fees:
Annual fee before voluntary fee
reductions (percentage of average
net assets) Investment A Shares 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Investment C Shares 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Voluntary fee reductions - Investment A Shares $ 61 $ 13 $ 7 $ 3 $ 8 $ 13
Voluntary fee reductions - Investment C Shares - $ 1 $ 1 - - $ 1
Administrative Services Fees:
Annual fee before voluntary fee
reductions (percentage of average
net assets) Investment C Shares 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
</TABLE>
(7) Investment Transactions
Purchases and sales of investments, excluding short-term securities for the
period ended January 31, 1999, were as follows (Amounts in Thousands):
<TABLE>
<CAPTION>
Quality Equity
Growth Income Cardinal Pinnacle Balanced Mid Cap
Fund Fund Fund Fund Fund Fund
-------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Purchases $128,920 $ 57,291 $ 31,884 $37,593 $120,933 $70,709
Sales $122,323 $ 50,780 $ 70,324 $11,736 $117,001 $73,468
U.S. Ohio
International Bond Fund Quality Government Municipal Tax Free
Equity For Bond Securities Bond Bond
Fund Income Fund Fund Fund Fund
------------- --------- -------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Purchases $ 48,312 $162,952 $167,292 $25,098 $ 70,716 $41,517
Sales $ 24,972 $178,062 $163,866 $19,365 $ 63,531 $25,686
</TABLE>
(8) Concentration of Credit Risk
The Ohio Tax Free Bond Fund invests a substantial proportion of its assets in
debt obligations issued by the State of Ohio and its political subdivisions,
agencies and public authorities. The Portfolio is more susceptible to factors
adversely affecting issuers of Ohio municipal securities than a fund that is not
concentrated in these issuers.
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 or portfolio securities and currency
holdings. The International Equity Fund has a relatively large concentration of
securities invested in companies domiciled in Great Britain. The Fund may be
more susceptible to the political, social and economic events adversely
64
<PAGE>
Fifth Third Funds
Quality Growth Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
----------
Institutional Shares
Net Asset Value, Beginning of Period $ 19.44
-----------
Investment Operations
Net investment income/(loss)
Net realized and unrealized gains/ -
(losses) from investments 4.78
-----------
Total from Investment Operations 4.78
-----------
Distributions to shareholders from:
Net investment income -
Net realized gains (1.95)
-----------
Total Distributions (1.95)
-----------
Net Asset Value, End of Period $ 22.27
===========
Total Return 25.86% (a)
Ratios to Average Net Assets:
Expenses 1.00% (b)
Net investment income/(loss) (0.07%)(b)
Expense waiver/reimbursement (c) 0.05% (b)
Supplemental data:
Net Assets at end of period (000) $ 555,239
Portfolio turnover (d) 22%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 20.26 $ 19.23 $ 13.16 $ 11.79 $ 9.70 $ 9.54
--------- --------- --------- --------- --------- --------
Investment Operations
Net investment income/(loss) (0.01) 0.03 0.08 0.12 0.14 0.13
Net realized and unrealized gains/
(losses) from investments 3.94 2.49 6.75 1.37 2.09 0.17
--------- --------- --------- --------- --------- --------
Total from Investment Operations 3.93 2.52 6.83 1.49 2.23 0.30
--------- --------- --------- --------- --------- --------
Distributions to shareholders from:
Net investment income -- (0.03) (0.09) (0.12) (0.14) (0.13)
Net realized gains (1.95) (1.46) (0.67) -- -- --
In excess of net investment income -- -- -- -- -- (0.01)**
--------- --------- --------- --------- --------- --------
Total Distributions (1.95) (1.49) (0.76) (0.12) (0.14) (0.14)
--------- --------- --------- --------- --------- --------
Net Asset Value, End of Period $ 22.24 20.26 $ 19.23 $ 13.16 $ 11.79 $ 9.70
========= ======== ========= ========= ========= ========
Total Return (excludes sales charge) 20.68% (a) 14.12% 54.02% 12.69% 23.21% 3.17%
Ratios to Average Net Assets:
Expenses 1.16% (b) 1.00% 1.00% 0.99% 1.00% 1.00%
Net investment income/(loss) (0.23%)(b) 0.10% 0.45% 0.98% 1.44% 1.42%
Expense waiver/reimbursement (c) 0.14% (b) 0.37% 0.36% 0.03% 0.05% 0.03%
Supplemental data: Net Assets at
end of period (000) $ 98,171 520,068 $ 399,683 $ 134,469 $ 82,594 $ 69,648
Portfolio turnover (d) 22% 45% 37% 37% 34% 37%
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of
commencement of operations) to January 31, 1999.
** This distribution did not represent a return of capital for federal tax
purposes for the year ended July 31, 1994.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
65
<PAGE>
Fifth Third Funds
Quality Growth Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996
----------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 20.10 $ 19.18 $ 13.16 $ 13.37
------------ ------------ ------------ ----------
Investment Operations
Net investment income/(loss) (0.03) (0.07) (0.03) --
Net realized and unrealized gains/
(losses) from investments 3.85 2.45 6.72 (0.21)
------------ ------------ ------------ ----------
Total from Investment Operations 3.82 2.38 6.69 (0.21)
------------ ------------ ------------ ----------
Distributions to shareholders from:
Net investment income -- -- -- --
Net realized gains (1.95) (1.46) (0.67) --
------------ ------------ ------------ ----------
Total Distributions (1.95) (1.46) (0.67) --
------------ ------------ ------------ ----------
Net Asset Value, End of Period $ 21.97 $ 20.10 $ 19.18 $ 13.16
============ ============ ============ ==========
Total Return (excludes sales charge) 20.28% (a) 13.41% 52.79% 12.50% (e)
Ratios to Average Net Assets:
Expenses 1.75% (b) 1.63% 1.75% 1.77% (b)
Net investment income/(loss) (0.82%)(b) (0.54)% (0.32)% 0.26% (b)
Expense waiver/reimbursement (c) 0.30% (b) 0.39% 0.26% 0.06% (b)
Supplemental data:
Net Assets at end of period (000) $ 8,853 $ 8,357 $ 3,146 $ 420
Portfolio turnover (d) 22% 45% 37% 37%
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of
commencement of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents total return for Investment A shares for the period from August
1, 1995 to April 24, 1996 plus the total return for the Investment C shares
for the period from April 25, 1996 to July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
66
<PAGE>
Fifth Third Funds
Equity Income Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
-----------
Institutional Shares
Net Asset Value, Beginning of Period $ 14.79
-----------
Investment Operations
Net investment income/(loss) 0.15
Net realized and unrealized gains/
(losses) from investments 1.42
-----------
Total from Investment Operations 1.57
-----------
Distributions to shareholders from:
Net investment income (0.15)
Net realized gains (1.45)
-----------
Total Distributions (1.60)
-----------
Net Asset Value, End of Period $ 14.76
===========
Total Return (excludes sales charge) 10.53% (a)
Ratios to Average Net Assets:
Expenses 1.00% (b)
Net investment income/(loss) 1.85% (b)
Expense waiver/reimbursement (c) 0.08% (b)
Supplemental data:
Net Assets at end of period (000) $147,677
Portfolio turnover (d) 34%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997**
----------- ------------- -------------
<S> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 15.38 $ 14.44 $ 12.00
-------- ---------- -----------
Investment Operations
Net investment income/(loss) 0.14 0.26 0.15
Net realized and unrealized gains/
(losses) from investments 0.83 2.43 2.43
-------- ---------- -----------
Total from Investment Operations 0.97 2.69 2.58
-------- ---------- -----------
Distributions to shareholders from:
Net investment income (0.14) (0.27) (0.14)
Net realized gains (1.45) (1.48) -
-------- ---------- -----------
Total Distributions (1.59) (1.75) (0.14)
-------- ---------- -----------
Net Asset Value, End of Period $ 14.76 $ 15.38 $14.44
======== ========== ===========
Total Return (excludes sales charge) 6.16% (a) 19.57% 21.64% (a)
Ratios to Average Net Assets:
Expenses 1.13% (b) 1.01% 1.06% (b)
Net investment income/(loss) 1.72% (b) 1.73% 2.32% (b)
Expense waiver/reimbursement (c) 0.20% (b) 0.43% 0.42% (b)
Supplemental data:
Net Assets at end of period (000) $ 16,216 $ 150,404 $120,324
Portfolio turnover (d) 34% 41% 28% (b)
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of
commencement of operations) to January 31, 1999.
** Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
67
<PAGE>
Fifth Third Funds
Equity Income Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997*
----------- ------------- -------------
<S> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 15.39 $ 14.45 $ 12.00
----------- ----------- -----------
Investment Operations
Net investment income/(loss) 0.09 0.17 0.10
Net realized and unrealized gains/
(losses) from investments 0.82 2.41 2.45
----------- ----------- -----------
Total from Investment Operations 0.91 2.58 2.55
----------- ----------- -----------
Distributions to shareholders from:
Net investment income (0.09) (0.16) (0.10)
Net realized gains (1.45) (1.48) -
----------- ----------- -----------
Total Distributions (1.54) (1.64) (0.10)
----------- ----------- -----------
Net Asset Value, End of Period $ 14.76 $ 15.39 $ 14.45
=========== =========== ===========
Total Return (excludes sales charge) 5.83% (a) 18.72% 21.30% (a)
Ratios to Average Net Assets:
Expenses 1.75% (b) 1.57% 1.81% (b)
Net investment income/(loss) 1.10% (b) 1.21% 1.56% (b)
Expense waiver/reimbursement (c) 0.33% (b) 0.52% 0.26% (b)
Supplemental data:
Net Assets at end of period (000) $ 1,392 $ 968 $ 92
Portfolio turnover (d) 34% 41% 28% (b)
</TABLE>
** Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above. (d) Portfolio turnover is calculated
on the basis of the fund as a whole without distinguishing between the
classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
68
<PAGE>
Fifth Third Funds
Cardinal Fund - Financial Highlights (Continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Period ended
Jan. 31, 1999 Year ended Period ended
(Unaudited)** Sept. 30, 1998 Sept. 30, 1997*
----------- -------------- --------------
<S> <C> <C> <C>
Institutional Shares
Net Asset Value, Beginning of Period $ 14.86 $ 16.64 $ 12.92
----------- ----------- -----------
Investment Operations
Net investment income/(loss) 0.01 0.15 0.12
Net realized and unrealized gains/
(losses) from investments 4.16 0.28 3.70
----------- ----------- -----------
Total from Investment Operations 4.17 0.43 3.82
----------- ----------- -----------
Distributions to shareholders from:
Net investment income (0.01) (0.15) (0.10)
Net realized gains (0.55) (2.01) -
In excess of net investment income - (0.05) -
----------- ----------- -----------
Total Distributions (0.56) (2.21) (0.10)
----------- ----------- -----------
Net Asset Value, End of Period $ 18.47 $ 14.86 $ 16.64
=========== =========== ===========
Total Return (excludes sales charge) 14.75% (a) 2.60% 29.77%
Ratios to Average Net Assets:
Expenses 0.79% (b) 0.84% 1.00%
Net investment income/(loss) (0.01%)(b) 0.85% 1.04%
Expense waiver/reimbursement (c) 0.02% (b) 0.09% 0.00%
Supplemental data:
Net Assets at end of period (000) $ 19,431 $ 25,542 $ 26,881
Portfolio turnover (d) 12% 15% 0.13%
<CAPTION>
Period ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) Sept. 30, 1998 Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1995 Sept. 30, 1994
----------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 14.87 $ 16.65 $ 13.13 $ 13.23 $ 12.73 $ 12.91
----------- ----------- ----------- ------------- ------------- -------------
Investment Operations
Net investment income/(loss) (0.01) 0.14 0.14 0.25 0.36 0.31
Net realized and unrealized gains/
(losses) from investments 4.21 0.27 4.64 1.95 1.32 0.12
----------- ----------- ----------- ------------- ------------- -------------
Total from Investment Operations 4.20 0.41 4.78 2.20 1.68 0.43
----------- ----------- ----------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income - (0.14) (0.13) (0.26) (0.35) (0.33)
Net realized gains (0.55) (2.01) (1.13) (2.04) (0.83) (0.28)
In excess of net investment income - (0.04) - - - -
----------- ----------- ----------- ------------- ------------- -------------
Total Distributions (0.55) (2.19) (1.26) (2.30) (1.18) (0.61)
----------- ----------- ----------- ------------- ------------- -------------
Net Asset Value, End of Period $ 18.52 $ 14.87 $ 16.65 $ 13.13 $ 13.23 $ 12.73
=========== =========== =========== ============= ============= =============
Total Return (excludes sales charge) 14.95% (a) 2.50% 39.17% 17.96% 14.84% 3.38%
Ratios to Average Net Assets:
Expenses 1.04% (b) 0.92% 1.06% 0.75% 0.70% 0.72%
Net investment income/(loss) (0.26%)(b) 0.76% 0.97% 1.90% 2.89% 2.40%
Expense waiver/reimbursement (c) 0.02% (b) 0.09% 0.06% 0.10% 0.00% 0.00%
Supplemental data:
Net Assets at end of period (000) $ 269,077 $ 232,903 $ 267,908 $ 229,042 $ 226,181 $ 246,581
Portfolio turnover (d) 12% 15% 13% 58% 20% 23%
</TABLE>
** Reflects operations for the period from January 2, 1997 (date of commencement
of operations) to September 30, 1997.
** Reflects operations for the period from October 1, 1998 through January 31,
1999.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
69
<PAGE>
Fifth Third Funds
Cardinal Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
-----------
Investment C Shares
Net Asset Value, Beginning of Period $ 15.63
----------
Investment Operations
Net investment income/(loss) -
Net realized and unrealized gains/
(losses) from investments 3.33
----------
Total from Investment Operations 3.33
----------
Distributions to shareholders from:
Net investment income -
Net realized gains (0.55)
----------
Total Distributions (0.55)
----------
Net Asset Value, End of Period $ 18.41
==========
Total Return (excludes sales charge) 21.57%
(a) Ratios to Average Net Assets:
Expenses 1.54% (b)
Net investment income/(loss) (0.51%)(b)
Expense waiver/reimbursement (c) 0.27% (b)
Supplemental data:
Net Assets at end of period (000) $ 291
Portfolio turnover (d) 12%
* Reflects operations for the period from October 22, 1998 (date of commencement
of operations) to January 31, 1999.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
70
<PAGE>
Fifth Third Funds
Pinnacle Fund* - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)**
-----------
Institutional Shares
Net Asset Value, Beginning of Period $ 31.26
----------
Investment Operations
Net investment income/(loss) (0.04)
Net realized and unrealized gains/
(losses) from investments 6.54
----------
Total from Investment Operations 6.50
----------
Distributions to shareholders from:
Net investment income -
Net realized gains (0.63)
----------
Total Distributions (0.63)
----------
Net Asset Value, End of Period $ 37.13
==========
Total Return (excludes sales charge) 21.04% (a)
Ratios to Average Net Assets:
Expenses 1.37% (b)
Net investment income/(loss) (0.30%)(b)
Expense waiver/reimbursement (c) 0.04% (b)
Supplemental data:
Net Assets at end of period (000) $ 44,588
Portfolio turnover (d) 26%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Period ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998*** July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- -------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 32.35 $ 27.71 $ 23.96 $ 22.47 $ 18.83 $ 21.15
---------- ------------- ------------- ------------- ------------- -----------
Investment Operations
Net investment income/(loss) (0.06) (0.02) 0.13 0.05 0.11 0.09
Net realized and unrealized gains/
(losses) from investments 5.44 5.13 8.25 5.04 6.54 (0.34)
---------- ------------- ------------- ------------- ------------- -----------
Total from Investment Operations 5.38 5.11 8.38 5.09 6.65 (0.25)
---------- ------------- ------------- ------------- ------------- -----------
Distributions to shareholders from:
Net investment income - - (0.13) (0.05) (0.11) (0.09)
Net realized gains (0.63) (0.47) (4.50) (3.55) (2.90) (1.98)
---------- ------------- ------------- ------------- ------------- -----------
Total Distributions (0.63) (0.47) (4.63) (3.60) (3.01) (2.07)
---------- ------------- ------------- ------------- ------------- -----------
Net Asset Value, End of Period $ 37.10 $ 32.35 $ 27.71 $ 23.96 $ 22.47 $ 18.83
========== ============= ============= ============= ============= ===========
Total Return (excludes sales charge) 16.87% (a) 18.58% (a) 35.40% 22.50% 35.40% (1.10%)
Ratios to Average Net Assets:
Expenses 1.57% (b) 1.28% (b) 1.12% 1.16% 1.14% 1.15%
Net investment income/(loss) (0.50%)(b) (0.12%)(b) 0.46% 0.18% 0.44% 0.41%
Expense waiver/reimbursement (c) 0.09% (b) 0.30% (b) 0.00% 0.00% 0.00% 0.00%
Supplemental data: Net Assets at
end of period (000) $ 23,455 $ 35,549 $ 22,272 $ 16,461 $ 14,673 $ 13,014
Portfolio turnover (d) 26% 38% 50% 44% 68% 91%
</TABLE>
* Information prior to the period March 9, 1998 is for the
Pinnacle Fund, the predecessor Fund of the Fifth Third Pinnacle Fund.
** Reflects operations for the period from August 11, 1998 (date of
commencement of operations) to January 31, 1999.
*** Reflects the period of operations from January 1, 1998 to July 31, 1998.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
71
<PAGE>
Fifth Third
Funds Pinnacle Fund* - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Six months
ended
Jan. 31, 1999 Period ended
(Unaudited) July 31, 1998**
----------- -------------
Investment C Shares
Net Asset Value, Beginning of Period $ 32.28 $ 30.16
--------- --------
Investment Operations
Net investment income/(loss) (0.09) (0.04)
Net realized and unrealized gains/
(losses) from investments 5.35 2.16
--------- --------
Total from Investment Operations 5.26 2.12
--------- --------
Distributions to shareholders from:
Net investment income - -
Net realized gains (0.63) -
--------- --------
Total Distributions (0.63) -
--------- --------
Net Asset Value, End of Period $ 36.91 $ 32.28
========= ========
Total Return (excludes sales charge) 16.57% (a) 7.07% (a)
Ratios to Average Net Assets:
Expenses 2.12% (b) 2.17% (b)
Net investment income/(loss) (1.05%)(b) (0.84%)(b)
Expense waiver/reimbursement (c) 0.29% (b) 0.42% (b)
Supplemental data:
Net Assets at end of period (000) $ 4,660 $ 922
Portfolio turnover(d) 26% 38%
*Information prior to the period March 9, 1998 is for the Pinnacle Fund, the
predecessor Fund of the Fifth Third Pinnacle Fund.
**Reflects the period of operations for the period March 9, 1998 (date of
commencement of operations) to July 31, 1998.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
72
<PAGE>
Fifth Third
Funds Balanced Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
-----------
Institutional Shares
Net Asset Value, Beginning of Period $ 14.60
-----------
Investment Operations
Net investment income/(loss) 0.10
Net realized and unrealized gains/
(losses) from investments 2.23
-----------
Total from Investment Operations 2.33
-----------
Distributions to shareholders from:
Net investment income (0.12)
Net realized gains (0.74)
-----------
Total Distributions (0.86)
-----------
Net Asset Value, End of Period $ 16.07
===========
Total Return (excludes sales charge) 16.47%(a)
Ratios to Average Net Assets:
Expenses 1.00% (b)
Net investment income/(loss) 1.50% (b)
Expense waiver/reimbursement (c) 0.08% (b)
Supplemental data:
Net Assets at end of period (000) $142,194
Portfolio turnover (d) 63%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 14.99 $ 15.33 $ 11.75 $ 11.28 $ 9.70 $ 9.78
----------- ------------- ------------- ------------- ------------- -------------
Investment Operations
Net investment income/(loss) 0.11 0.27 0.27 0.27 0.28 0.26
Net realized and unrealized gains/
(losses) from investments 1.82 0.92 4.06 0.47 1.57 (0.06)
----------- ------------- ------------- ------------- ------------- -------------
Total from Investment Operations 1.93 1.19 4.33 0.74 1.85 0.20
----------- ------------- ------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income (0.11) (0.28) (0.26) (0.27) (0.27) (0.26)
Net realized gains (0.74) (1.25) (0.49) - - -
In excess of net investment income - - - - - (0.02)**
----------- ------------- ------------- ------------- ------------- -------------
Total Distributions (0.85) (1.53) (0.75) (0.27) (0.27) (0.28)
----------- ------------- ------------- ------------- ------------- -------------
Net Asset Value, End of Period $ 16.07 $ 14.99 $ 15.33 $ 11.75 $ 11.28 $ 9.70
=========== ============= ============= ============= ============= =============
Total Return (excludes sales charge) 13.38% (a) 8.41% 38.45% 6.52% 19.37% 2.02%
Ratios to Average Net Assets:
Expenses 1.21% (b) 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income/(loss) 1.29% (b) 1.84% 2.05% 2.31% 2.73% 2.64%
Expense waiver/reimbursement (c) 0.12% (b) 0.43% 0.40% 0.06% 0.06% 0.06%
Supplemental data: Net Assets at
end of period (000) $ 73,805 $ 173,177 $ 122,765 $ 92,808 $ 58,075 $ 59,363
Portfolio turnover (d) 63% 135% 101% 61% 58% 53%
</TABLE>
** Reflects operations for the period from August 11, 1998 (date of commencement
of operations) to January 31, 1999.
** This distribution did not represent a return of capital for federal tax
purposes for the year ended July 31, 1994.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in
both the expense and net investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
73
<PAGE>
Fifth Third Funds
Balanced Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996*
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 15.01 $ 15.34 $ 11.75 $ 12.13
------------- ------------- ------------- -------------
Investment Operations
Net investment income/(loss) 0.09 0.17 0.16 0.05
Net realized and unrealized gains/
(losses) from investments 1.79 0.92 4.08 (0.39)
------------- ------------- ------------- -------------
Total from Investment Operations 1.88 1.09 4.24 (0.34)
------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income (0.09) (0.17) (0.16) (0.04)
Net realized gains (0.74) (1.25) (0.49) -
------------- ------------- ------------- -------------
Total Distributions (0.83) (1.42) (0.65) (0.04)
------------- ------------- ------------- -------------
Net Asset Value, End of Period $ 16.06 $ 15.01 $ 15.34 $ 11.75
============= ============= ============= =============
Total Return (excludes sales charge) 13.02% (a) 7.67% 37.52% 6.32%( e)
Ratios to Average Net Assets:
Expenses 1.75% (b) 1.58% 1.75% 1.78% (b)
Net investment income/(loss) 0.75% (b) 1.24% 1.30% 1.60% (b)
Expense waiver/reimbursement (c) 0.33% (b) 0.49% 0.30% 0.07% (b)
Supplemental data:
Net Assets at end of period (000) $ 5,682 $ 4,796 $ 1,155 $ 264
Portfolio turnover (d) 63% 135% 101% 61%
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents total return for Investment A shares for the period from
August 1, 1995 to April 24, 1996 plus the total return for Investment C
shares for the period from April 25, 1996 to July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
74
<PAGE>
Fifth Third Funds
Mid Cap Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
-------------
Institutional Shares
Net Asset Value, Beginning of Period $ 14.96
-------------
Investment Operations
Net investment income/(loss) (0.07)
Net realized and unrealized gains/
(losses) from investments 1.80
-------------
Total from Investment Operations 1.73
-------------
Distributions to shareholders from:
Net investment income -
Net realized gains (1.44)
-------------
Total Distributions (1.44)
-------------
Net Asset Value, End of Period $ 15.25
=============
Total Return (excludes sales charge) 8.71% (a)
Ratios to Average Net Assets:
Expenses 1.00% (b)
Net investment income/(loss) (0.30%)(b)
Expense waiver/reimbursement (c) 0.08% (b)
Supplemental data:
Net Assets at end of period (000) $ 198,132
Portfolio turnover (d) 33%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 16.19 $ 16.98 $ 12.60 $ 12.59 $ 10.10 $ 9.68
----------- ------------- ------------- ------------- ------------- -------------
Investment Operations
Net investment income/(loss) (0.09) (0.03) 0.02 0.06 0.08 0.06
Net realized and unrealized gains/
(losses) from investments 0.56 0.98 5.55 0.11 2.48 0.43
----------- ------------- ------------- ------------- ------------- -------------
Total from Investment Operations 0.47 0.95 5.57 0.17 2.56 0.49
----------- ------------- ------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income - - (0.02) (0.07) (0.07) (0.07)
Net realized gains (1.44) (1.74) (1.15) (0.09) - -
In excess of net investment income - - (0.02) - - -
----------- ------------- ------------- ------------- ------------- -------------
Total Distributions (1.44) (1.74) (1.19) (0.16) (0.07) (0.07)
----------- ------------- ------------- ------------- ------------- -------------
Net Asset Value, End of Period $ 15.22 $ 16.19 $ 16.98 $ 12.60 $ 12.59 $ 10.10
=========== ============= ============= ============= ============= =============
Total Return (excludes sales charge) 3.22%(a) 5.69% 47.17% 1.27% 25.45% 5.07%
Ratios to Average Net Assets:
Expenses 1.16%(b) 1.01% 1.00% 1.00% 1.00% 1.00%
Net investment income/(loss) (0.46%)(b) (0.19%) 0.10% 0.42% 0.77% 0.60%
Expense waiver/reimbursement (c) 0.17%(b) 0.40% 0.37% 0.06% 0.18% 0.33%
Supplemental data:
Net Assets at end of period (000) $ 30,954 $ 217,547 $ 186,066 $ 72,663 $ 47,184 $ 30,210
Portfolio turnover (d) 33% 44% 52% 54% 23% 44%
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of commencement
of operations) to January 31, 1999.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
75
<PAGE>
Fifth Third Funds
Mid Cap Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996*
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 15.98 $ 16.88 $ 12.59 $ 13.72
---------- ------------ ---------- ----------
Investment Operations
Net investment income/(loss) (0.09) (0.05) (0.07) (0.01)
Net realized and unrealized gains/
(losses) from investments 0.51 0.89 5.51 (1.12)
---------- ------------ ---------- ----------
Total from Investment Operations 0.42 0.84 5.44 (1.13)
---------- ------------ ---------- ----------
Distributions to shareholders from:
Net investment income - - - -
Net realized gains (1.44) (1.74) (1.15) -
---------- ------------ ---------- ----------
Total Distributions (1.44) (1.74) (1.15) -
---------- ------------ ---------- ----------
Net Asset Value, End of Period $ 14.96 $ 15.98 $ 16.88 $ 12.59
========== ============ ========== ==========
Total Return (excludes sales charge) 2.94%(a) 5.03% 46.05% 1.11%(e)
Ratios to Average Net Assets: Expenses 1.75%(b) 1.61% 1.75% 1.78%(b)
Net investment income/(loss) (1.05%)(b) (0.81%) (0.62%) (0.51%)(b)
Expense waiver/reimbursement(c) 0.33%(b) 0.44% 0.27% 0.06%(b)
Supplemental data: Net Assets at
end of period (000) $ 883 $ 1,049 $ 439 $ 229
Portfolio turnover(d) 33% 44% 52% 54%
</TABLE>
* Reflects operations for the period from April 24, 1996 (date of commencement
of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents total return for Investment A shares for the period from August
1, 1995 to April 23, 1996 plus the total return for Investment C shares for
the period from April 24, 1996 to July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
76
<PAGE>
Fifth Third Funds
International Equity Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
--------------
Institutional Shares
Net Asset Value, Beginning of Period $ 10.50
--------------
Investment Operations
Net investment income/(loss) -
Net realized and unrealized gains/
(losses) from investments 1.79
--------------
Total from Investment Operations 1.79
--------------
Distributions to shareholders from:
Net investment income (0.24)
Net realized gains (0.06)
--------------
Total Distributions (0.30)
--------------
Net Asset Value, End of Period $ 11.99
==============
Total Return (excludes sales charge) 17.11%(a)
Ratios to Average Net Assets:
Expenses 1.50%(b)
Net investment income/(loss) (0.70%)(b)
Expense waiver/reimbursement(c) 0.00%(b)
Supplemental data:
Net Assets at end of period(000) $ 161,118
Portfolio turnover(d) 18%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995**
------------ -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 12.56 $ 12.05 $ 10.74 $ 9.83 $ 10.00
------------ -------------- -------------- -------------- -------------
Investment Operations
Net investment income/(loss) (0.03) 0.09 0.04 0.01 0.05
Net realized and unrealized gains/
(losses) from investments (0.25) 1.31 2.15 0.90 (0.22)
------------ -------------- -------------- -------------- -------------
Total from Investment Operations (0.28) 1.40 2.19 0.91 (0.17)
------------ -------------- -------------- -------------- -------------
Distributions to shareholders from:
Net investment income (0.17) (0.59) (0.66) - -
In excess of net investment income - - (0.16) - -
Net realized gains (0.06) (0.30) (0.06) - -
------------ -------------- -------------- -------------- -------------
Total Distributions (0.23) (0.89) (0.88) - -
------------ -------------- -------------- -------------- -------------
Net Asset Value, End of Period $ 12.05 $ 12.56 $ 12.05 $ 10.74 $ 9.83
============ ============== ============== ============== =============
Total Return (excludes sales charge) (2.18%)(a) 13.29% 21.78% 9.26% (1.70%)(a)
Ratios to Average Net Assets: Expenses 1.73%(b) 1.47% 1.38% 1.61% 1.65% (b)
Net investment income/(loss) (0.93%)(b) 0.66% 0.39% 0.32% 0.62%(b)
Expense waiver/reimbursement(c) 0.02%(b) 0.35% 0.35% 0.05% 0.07%(b)
Supplemental data:
Net Assets at end of period(000) $ 5,397 $ 163,297 $ 151,728 $ 120,349 $ 86,442
Portfolio turnover (d) 18% 39% 60% 41% 54%
</TABLE>
** Reflects operations for the period from October 9, 1998 (date of commencement
of operations) to January 31, 1999.
** Reflects operations for the period from August 19, 1994 (date of commencement
of operations) to July 31, 1995.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
77
<PAGE>
Fifth Third Funds
International Equity Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996*
--------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 12.51 $ 12.01 $ 10.71 $ 11.21
-------- -------- -------- --------
Investment Operations
Net investment income/(loss) (0.05) (0.06) (0.02) 0.01
Net realized and unrealized gains/
(losses) from investments (0.26) 1.39 2.16 (0.51)
-------- -------- -------- --------
Total from Investment Operations (0.31) 1.33 2.14 (0.50)
-------- -------- -------- --------
Distributions to shareholders from:
Net investment income (0.15) (0.53) (0.46) -
In excess of net investment income - - (0.32) -
Net realized gains (0.06) (0.30) (0.06) -
-------- -------- -------- --------
Total Distributions (0.21) (0.83) (0.84) -
-------- -------- -------- --------
Net Asset Value, End of Period $ 11.99 $ 12.51 $ 12.01 $ 10.71
======== ======== ======== ========
Total Return (excludes sales charge) (2.47%)(a) 12.57% 21.25% 8.95%(a)
Ratios to Average Net Assets:
Expenses 2.25%(b) 2.22% 2.13% 2.34%(b)
Net investment income/(loss) (1.45%)(b) (0.09%) (0.28%) 0.76%(b)
Expense waiver/reimbursement(c) 0.25%(b) 0.25% 0.25% 0.00%(b)
Supplemental data:
Net Assets at end of period (000) $ 261 $ 291 $ 210 $ 57
Portfolio turnover (d) 18% 39% 60% 41%
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
78
<PAGE>
Fifth Third Funds
Bond Fund For Income - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
------------
Institutional Shares
Net Asset Value, Beginning of Period $ 12.27
-----------
Investment Operations
Net investment income/(loss) 0.32
Net realized and unrealized gains/
(losses) from investments 0.13
-----------
Total from Investment Operations 0.45
-----------
Distributions to shareholders from:
Net investment income (0.32)
Net realized gains (0.21)
-----------
Total Distributions (0.53)
-----------
Net Asset Value, End of Period $ 12.19
===========
Total Return (excludes sales charge) 3.71%(a)
Ratios to Average Net Assets:
Expenses 0.75%(b)
Net investment income/(loss) 4.66%(b)
Expense waiver/reimbursement (c) 0.05%(b)
Supplemental data:
Net Assets at end of period (000) $ 196,634
Portfolio turnover (d) 70%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997**
--------- ------------- -------------
<S> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 12.19 $ 12.19 $ 12.00
--------- -------- --------
Investment Operations
Net investment income/(loss) 0.30 0.68 0.37
Net realized and unrealized gains/
(losses) from investments 0.20 0.06 0.18
--------- -------- --------
Total from Investment Operations 0.50 0.74 0.55
--------- -------- --------
Distributions to shareholders from:
Net investment income (0.30) (0.69) (0.36)
Net realized gains (0.21) (0.05) -
--------- -------- --------
Total Distributions (0.51) (0.74) (0.36)
--------- -------- --------
Net Asset Value, End of Period $ 12.18 $ 12.19 $ 12.19
========= ======== ========
Total Return (excludes sales charge) 4.15%(a) 6.23% 4.64%(a)
Ratios to Average Net Assets:
Expenses 0.96%(b) 0.75% 0.79%(b)
Net investment income/(loss) 4.45%(b) 5.54% 6.08%(b)
Expense waiver/reimbursement (c) 0.09%(b) 0.42% 0.42%(b)
Supplemental data:
Net Assets at end of period (000) $ 62,687 $188,071 $157,108
Portfolio turnover (d) 70% 127% 157%(b)
</TABLE>
** Reflects operations for the period from August 11, 1998 (date of commencement
of operations) to January 31, 1999.
** Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
79
<PAGE>
Fifth Third Funds
Bond Fund For Income - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Period ended
(Unaudited) July 31, 1998** July 31, 1997*
----------- ------------- -------------
<S> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 12.19 $ 12.18 $ 12.00
-------- -------- --------
Investment Operations
Net investment income/(loss) 0.27 0.60 (0.01)
Net realized and unrealized gains/
(losses) from investments 0.21 0.05 0.50
-------- -------- --------
Total from Investment Operations 0.48 0.65 0.49
-------- -------- --------
Distributions to shareholders from:
Net investment income (0.27) (0.59) (0.22)
Net realized gains (0.21) (0.05) -
In excess of net investment income - - (0.09)
-------- -------- --------
Total Distributions (0.48) (0.64) (0.31)
-------- -------- --------
Net Asset Value, End of Period $ 12.19 $ 12.19 $ 12.18
======== ======== ========
Total Return (excludes sales charge) 3.98%(a) 5.50% 4.18%(a)
Ratios to Average Net Assets:
Expenses 1.50%(b) 1.43% 1.54%(b)
Net investment income/(loss) 3.91%(b) 4.89% 4.20%(b)
Expense waiver/reimbursement (c) 0.30%(b) 0.32% 0.26%(b)
Supplemental data:
Net Assets at end of period (000) $ 471 $ 230 $ 6
Portfolio turnover (d) 70% 127% 157%
</TABLE>
* Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
** Per share information is calculated using the average share method.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
80
<PAGE>
Fifth Third Funds
Quality Bond Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Period ended
Jan. 31, 1999
(Unaudited)*
-----------
Institutional Shares
Net Asset Value, Beginning of Period $ 10.02
--------
Investment Operations
Net investment income/(loss) 0.23
Net realized and unrealized gains/
(losses) from investments 0.20
--------
Total from Investment Operations 0.43
--------
Distributions to shareholders from:
Net investment income (0.24)
Net realized gains (0.11)
--------
Total Distributions (0.35)
--------
Net Asset Value, End of Period $ 10.10
========
Total Return (excludes sales charge) 4.34%(a)
Ratios to Average Net Assets:
Expenses 0.75%(b)
Net investment income/(loss) 4.69%(b)
Expense waiver/reimbursement (c) 0.10%(b)
Supplemental data:
Net Assets at end of period (000) $111,520
Portfolio turnover (d) 161%
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 9.96 $ 9.85 $ 9.52 $ 9.72 $ 9.55 $ 10.29
-------- -------- -------- -------- --------- --------
Investment Operations
Net investment income/(loss) 0.39 0.54 0.55 0.56 0.64 0.57
Net realized and unrealized gains/
(losses) from investments 0.09 0.12 0.32 (0.19) 0.17 (0.69)
-------- -------- -------- -------- --------- --------
Total from Investment Operations 0.48 0.66 0.87 0.37 0.81 (0.12)
-------- -------- -------- -------- --------- --------
Distributions to shareholders from:
Net investment income (0.23) (0.55) (0.54) (0.57) (0.64) (0.59)
Net realized gains (0.11) - - - - (0.03)
-------- -------- -------- -------- --------- --------
Total Distributions (0.34) (0.55) (0.54) (0.57) (0.64) (0.62)
-------- -------- -------- -------- --------- --------
Net Asset Value, End of Period $ 10.10 $ 9.96 $ 9.85 $ 9.52 $ 9.72 $ 9.55
======== ======== ======== ======== ========= ========
Total Return (excludes sales charge) 4.86%(a) 6.91% 9.43% 3.86% 8.89% (1.25%)
Ratios to Average Net Assets:
Expenses 0.88%(b) 0.75% 0.75% 0.75% 0.75% 0.75%
Net investment income/(loss) 4.56%(b) 5.50% 5.71% 5.80% 6.72% 5.76%
Expense waiver/reimbursement (c) 0.23%(b) 0.45% 0.41% 0.06% 0.09% 0.11%
Supplemental data:
Net Assets at end of period (000) $ 9,675 $107,794 $ 91,789 $ 83,422 $ 55,767 $ 47,272
Portfolio turnover (d) 161% 279% 181% 117% 138% 112%
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of commencement
of operations) to January 31, 1999.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
81
<PAGE>
Fifth Third Funds
Quality Bond Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996*
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 9.95 $ 9.86 $ 9.53 $ 9.62
------- ------- ------- -------
Investment Operations
Net investment income/(loss) 0.21 0.48 0.49 0.14
Net realized and unrealized gains/
(losses) from investments 0.25 0.09 0.32 (0.08)
------- ------- ------- -------
Total from Investment Operations 0.46 0.57 0.81 0.06
------- ------- ------- -------
Distributions to shareholders from:
Net investment income (0.21) (0.48) (0.48) (0.15)
Net realized gains (0.11) -- -- --
------- ------- ------- -------
Total Distributions (0.32) (0.48) (0.48) (0.15)
------- ------- ------- -------
Net Asset Value, End of Period $ 10.09 $ 9.95 $ 9.86 $ 9.53
======= ======= ======= =======
Total Return (excludes sales charge) 4.65%(a) 5.92% 8.68% 3.71%(e)
Ratios to Average Net Assets:
Expenses 1.50%(b) 1.50% 1.50% 1.52%(b)
Net investment income/(loss) 3.94%(b) 4.76% 4.97% 5.03%(b)
Expense waiver/reimbursement(c) 0.35%(b) 0.35% 0.31% 0.09%(b)
Supplemental data:
Net Assets at end of period(000) $ 824 $ 399 $ 204 $ 162
Portfolio turnover(d) 161% 279% 181% 117%
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents total return for Investment A shares for the period from August
1, 1995 to April 24, 1996 plus the total return for the Investment C shares
for the period from April 25, 1996 to July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
82
<PAGE>
Fifth Third Funds
U.S. Government Securities Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
-------------
Institutional Shares
Net Asset Value, Beginning of Period $ 9.89
----------
Investment Operations
Net investment income/(loss) 0.23
Net realized and unrealized gains/
(losses) from investments 0.14
----------
Total from Investment Operations 0.37
----------
Distributions to shareholders from:
Net investment income (0.25)
Net realized gains --
----------
Total Distributions (0.25)
----------
Net Asset Value, End of Period $ 10.01
==========
Total Return (excludes sales charge) 3.74%(a)
Ratios to Average Net Assets:
Expenses 0.75%(b)
Net investment income/(loss) 4.68%(b)
Expense waiver/reimbursement(c) 0.18%(b)
Supplemental data:
Net Assets at end of period (000) $ 43,398
Portfolio turnover(d) 45%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 9.82 $ 9.75 $ 9.55 $ 9.77 $ 9.64 $ 10.21
---------- ---------- ---------- ---------- ---------- ----------
Investment Operations
Net investment income/(loss) 0.22 0.52 0.54 0.55 0.58 0.51
Net realized and unrealized gains/
(losses) from investments 0.20 0.07 0.19 (0.20) 0.13 (0.49)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.42 0.59 0.73 0.35 0.71 0.02
---------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (0.23) (0.52) (0.53) (0.57) (0.58) (0.57)
Net realized gains -- -- -- -- -- (0.02)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (0.23) (0.52) (0.53) (0.57) (0.58) (0.59)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 10.01 $ 9.82 $ 9.75 $ 9.55 $ 9.77 $ 9.64
========== ========== ========== ========== ========== ==========
Total Return (excludes sales charge) 4.33%(a) 6.17% 7.83% 3.63% 7.66% 0.11%
Ratios to Average Net Assets:
Expenses 0.91%(b) 0.75% 0.75% 0.75% 0.75% 0.75%
Net investment income/(loss) 4.52%(b) 5.30% 5.56% 5.67% 5.98% 5.17%
Expense waiver/reimbursement(c) 0.27%(b) 0.53% 0.50% 0.29% 0.39% 0.18%
Supplemental data:
Net Assets at end of period(000) $ 5,613 $ 41,550 $ 42,414 $ 30,754 $ 25,054 $ 29,107
Portfolio turnover(d) 45% 155% 169% 103% 115% 55%
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of commencement
of operations) to January 31, 1999.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
83
<PAGE>
Fifth Third Funds
U.S. Government Securities Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996*
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 9.80 $ 9.75 $ 9.56 $ 9.65
---------- ---------- ---------- ----------
Investment Operations
Net investment income/(loss) 0.19 0.46 0.46 0.16
Net realized and unrealized gains/
(losses) from investments 0.22 0.04 0.19 (0.10)
---------- ---------- ---------- ----------
Total from Investment Operations 0.41 0.50 0.65 0.06
---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (0.24) (0.45) (0.46) (0.15)
Net realized gains -- -- -- --
---------- ---------- ---------- ----------
Total Distributions (0.24) (0.45) (0.46) (0.15)
---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 9.97 $ 9.80 $ 9.75 $ 9.56
========== ========== ========== ==========
Total Return (excludes sales charge) 3.90%(a) 5.19% 6.92% 3.48%(e)
Ratios to Average Net Assets:
Expenses 1.50%(b) 1.50% 1.50% 1.52%(b)
Net investment income/(loss) 3.93%(b) 4.56% 4.82% 4.80%(b)
Expense waiver/reimbursement(c) 0.43%(b) 0.43% 0.40% 0.37%(b)
Supplemental data:
Net Assets at end of period(000) $ 237 $ 118 $ 75 $ 49
Portfolio turnover(d) 45% 155% 169% 103%
</TABLE>
* Reflects operations for the period from April 24, 1996 (date of commencement
of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents total return for Investment A Shares for the period from August
1, 1995 to April 23, 1996 plus the total return for the Investment C Shares
for the period from April 24, 1996 to July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
84
<PAGE>
Fifth Third Funds
Municipal Bond Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
------------
Institutional Shares
Net Asset Value, Beginning of Period $ 12.30
-----------
Investment Operations
Net investment income/(loss) 0.22
Net realized and unrealized gains/
(losses) from investments 0.28
-----------
Total from Investment Operations 0.50
-----------
Distributions to shareholders from:
Net investment income (0.24)
Net realized gains (0.21)
-----------
Total Distributions (0.45)
-----------
Net Asset Value, End of Period $ 12.35
===========
Total Return (excludes sales charge) 4.13%(a)
Ratios to Average Net Assets:
Expenses 0.75%(b)
Net investment income/(loss) 3.81%(b)
Expense waiver/reimbursement(c) 0.10%(b)
Supplemental data:
Net Assets at end of period (000) $ 123,424
Portfolio turnover(d) 55%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997**
------------- ------------- ---------------
<S> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 12.24 $ 12.33 $ 12.00
----------- ----------- -----------
Investment Operations
Net investment income/(loss) 0.22 0.50 0.28
Net realized and unrealized gains/
(losses) from investments 0.33 0.01 0.32
----------- ----------- -----------
Total from Investment Operations 0.55 0.51 0.60
----------- ----------- -----------
Distributions to shareholders from:
Net investment income (0.22) (0.51) (0.27)
Net realized gains (0.21) (0.09) --
----------- ----------- -----------
Total Distributions (0.43) (0.60) (0.27)
----------- ----------- -----------
Net Asset Value, End of Period $ 12.36 $ 12.24 $ 12.33
=========== =========== ===========
Total Return (excludes sales charge) 4.58%(a) 4.28% 5.04%(a)
Ratios to Average Net Assets:
Expenses 0.78%(b) 0.76% 0.81%(b)
Net investment income/(loss) 3.78%(b) 4.09% 4.44%(b)
Expense waiver/reimbursement(c) 0.32%(b) 0.45% 0.42%(b)
Supplemental data:
Net Assets at end of period(000) $ 270 $ 117,333 $ 101,616
Portfolio turnover(d) 55% 121% 63%
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of
commencement of operations) to January 31, 1999.
** Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
85
<PAGE>
Fifth Third Funds
Municipal Bond Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended Period ended
July 31, 1998** July 31, 1997*
--------------- --------------
Investment C Shares
Net Asset Value, Beginning of Period $ 12.33 $ 12.00
---------- ----------
Investment Operations
Net investment income/(loss) 0.18 (0.20)
Net realized and unrealized gains/
(losses) from investments 0.07 0.75
---------- ----------
Total from Investment Operations 0.25 0.55
---------- ----------
Distributions to shareholders from:
Net investment income (0.18) (0.16)
Net realized gains (0.09) --
In excess of net investment income -- (0.06)
---------- ----------
Total Distributions (0.27) (0.22)
---------- ----------
Net Asset Value, End of Period $ 12.31 $ 12.33
========== ==========
Total Return (excludes sales charge) 2.03%(a) 4.65%(a)
Ratios to Average Net Assets:
Expenses 1.51%(b) 1.56%(b)
Net investment income/(loss) 3.41%(b) 3.09%(b)
Expense waiver/reimbursement(c) 0.37%(b) 0.26%(b)
Supplemental data:
Net Assets at end of period (000) $ -- $ 11
Portfolio turnover(d) 121% 63%
* Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
** Reflects operations for the period from August 1, 1997 (date of commencement
of operations) to January 8, 1998. As of July 31, 1998, no shares or assets
existed in the Investment C Shares. The ending net asset value is the last
NAV for a share redeemed on January 8, 1998. The Investment C Shares
continue to be open for investment with an offering price equal to the
Investment A Shares. Per share information is calculated using the average
share method for the Investment C Shares.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
86
<PAGE>
Fifth Third Funds
Ohio Tax Free Bond Fund - Financial Highlights
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
Period ended
Jan. 31, 1999
(Unaudited)*
-------------
Institutional Shares
Net Asset Value, Beginning of Period $ 10.33
------------
Investment Operations
Net investment income/(loss) 0.20
Net realized and unrealized gains/
(losses) from investments 0.24
------------
Total from Investment Operations 0.44
------------
Distributions to shareholders from:
Net investment income (0.21)
Net realized gains (0.06)
------------
Total Distributions (0.27)
------------
Net Asset Value, End of Period $ 10.50
============
Total Return (excludes sales charge) 4.34%(a)
Ratios to Average Net Assets:
Expenses 0.61%(b)
Net investment income/(loss) 3.99%(b)
Expense waiver/reimbursement (c) 0.24%(b)
Supplemental data:
Net Assets at end of period(000) $ 182,823
Portfolio turnover(d) 14%
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Year ended Year ended Year ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994
----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment A Shares
Net Asset Value, Beginning of Period $ 10.29 $ 10.31 $ 10.01 $ 9.99 $ 9.75 $ 9.95
----------- ------------- ------------- ------------- ------------- -------------
Investment Operations
Net investment income/(loss) 0.20 0.42 0.43 0.40 0.42 0.40
Net realized and unrealized gains/
(losses) from investments 0.27 0.02 0.30 0.03 0.24 (0.21)
----------- ------------- ------------- ------------- ------------- -------------
Total from Investment Operations 0.47 0.44 0.73 0.43 0.66 0.19
----------- ------------- ------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income (0.20) (0.42) (0.43) (0.41) (0.42) (0.39)
Net realized gains (0.06) (0.04) -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
Total Distributions (0.26) (0.46) (0.43) (0.41) (0.42) (0.39)
----------- ------------- ------------- ------------- ------------- -------------
Net Asset Value, End of Period $ 10.50 $ 10.29 $ 10.31 $ 10.01 $ 9.99 $ 9.75
=========== ============= ============= ============= ============= =============
Total Return (excludes sales charge) 4.62%(a) 4.38% 7.49% 4.33% 7.02% 1.95%
Ratios to Average Net Assets:
Expenses 0.77%(b) 0.74% 0.75% 0.74% 0.35% 0.00%
Net investment income/(loss) 3.83%(b) 4.09% 4.27% 4.01% 4.36% 4.18%
Expense waiver/reimbursement(c) 0.33%(b) 0.43% 0.37% 0.32% 0.77% 1.33%
Supplemental data:
Net Assets at end of period(000) $ 24,975 $ 188,966 $ 168,800 $ 35,463 $ 28,315 $ 23,854
Portfolio turnover(d) 14% 42% 49% 30% 27% 94%
</TABLE>
* Reflects operations for the period from August 11, 1998 (date of
commencement of operations) to January 31, 1999.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
87
<PAGE>
Fifth Third
Funds Ohio Tax Free Bond Fund - Financial Highlights (continued)
- --------------------------------------------------------------------------------
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
Six months
ended
Jan. 31, 1999 Year ended Year ended Period ended
(Unaudited) July 31, 1998 July 31, 1997 July 31, 1996*
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Investment C Shares
Net Asset Value, Beginning of Period $ 10.28 $ 10.31 $ 10.00 $ 10.02
----------- ------------- ------------- --------------
Investment Operations
Net investment income/(loss) 0.16 0.35 0.36 0.10
Net realized and unrealized gains/
(losses) from investments 0.28 0.01 0.31 (0.01)
----------- ------------- ------------- --------------
Total from Investment Operations 0.44 0.36 0.67 0.09
----------- ------------- ------------- --------------
Distributions to shareholders from:
Net investment income (0.17) (0.35) (0.35) (0.11)
Net realized gains (0.06) (0.04) -- --
In excess of net investment income -- -- (0.01) --
----------- ------------- ------------- --------------
Total Distributions (0.23) (0.39) (0.36) (0.11)
----------- ------------- ------------- --------------
Net Asset Value, End of Period $ 10.49 $ 10.28 $ 10.31 $ 10.00
=========== ============= ============= ==============
Total Return (excludes sales charge) 4.36%(a) 3.56% 6.84% 3.98%(e)
Ratios to Average Net Assets:
Expenses 1.36%(b) 1.49% 1.50% 1.52%(b)
Net investment income/(loss) 3.24%(b) 3.33% 3.51% 3.41%(b)
Expense waiver/reimbursement(c) 0.49%(b) 0.33% 0.27% 0.28%(b)
Supplemental data:
Net Assets at end of period (000) $ 923 $ 584 $ 248 $ 38
Portfolio turnover(d) 14% 42% 49% 30%
</TABLE>
* Reflects operations for the period from April 24, 1996 (date of commencement
of operations) to July 31, 1996.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents total return for Investment A Shares for the period from August
1, 1995 to April 23, 1996 plus the total return for the Investment C Shares
for the period from April 24, 1996 to July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
88
<PAGE>
Addresses
- --------------------------------------------------------------------------------
Fifth Third Quality Growth Fund Fifth Third Funds
Fifth Third Equity Income Fund c/o Fifth Third Bank
Fifth Third Cardinal Fund 38 Fountain Square Plaza
Fifth Third Pinnacle Fund Cincinnati, Ohio 45263
Fifth Third Balanced Fund
Fifth Third Mid Cap Fund
Fifth Third International Equity Fund
Fifth Third Bond Fund For Income
Fifth Third Quality Bond Fund
Fifth Third U.S. Government Securities Fund
Fifth Third Municipal Bond Fund
Fifth Third Ohio Tax Free Bond Fund
- --------------------------------------------------------------------------------
Investment Advisor: Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------
Investment Advisor (Pinnacle Fund only) Heartland Capital Management, Inc.
251 North Illinois Street, Suite 610
Indianapolis, Indiana 46204
- --------------------------------------------------------------------------------
Sub-Advisor (International Equity Fund Morgan Stanley Asset Management, Inc.
only) 1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------------------------------
Custodian, Transfer Agent, Dividend
Disbursing Agent, and Sub-Administrator Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------
Distributor and Administrator BISYS Fund Services, L.P.
3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------
Independent Auditors Ernst & Young LLP
1300 Chiquita Center
250 East Fifth Street
Cincinnati, Ohio 45202
- --------------------------------------------------------------------------------
<PAGE>
[FIFTH THIRD BANK LOGO APPEARS HERE]
