FIFTH THIRD PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2000
(AMOUNTS IN THOUSANDS)
-------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
COMMERCIAL PAPER - 69.5%
BANKS - 12.2%
---------------------------------
$ 9,000 Bank of America, NA, 8/7/00 $ 8,990
10,000 Banque Nationale De Paris,
10/10/00 9,872
20,000 Barclays, 8/17/00 19,942
10,000 Credit Suisse First
Boston, Inc., 10/2/00 9,884
10,000 Deutsche Bank, 8/8/00 9,987
10,000 Societe Generale, 9/20/00 9,910
10,000 Wells Fargo & Co., 8/16/00 9,972
10,000 Wells Fargo & Co., 8/29/00 9,950
--------------------------------- ---------
Total 88,507
--------------------------------- ---------
BROKERAGE - 13.0%
---------------------------------
15,000 Goldman Sachs Group, 8/15/00 14,961
10,000 Goldman Sachs Group, 8/22/00 9,965
10,000 Merrill Lynch & Co., 9/12/00 9,924
10,000 Merrill Lynch & Co., 2/2/01 9,662
10,000 Salomon Smith Barney, Inc., 8/22/00 9,962
10,000 Salomon Smith Barney, Inc., 8/30/00 9,948
20,000 U.B.S. Finance, 8/1/00 20,000
10,000 U.B.S. Finance, 8/14/00 9,980
--------------------------------- ---------
Total 94,402
--------------------------------- ---------
CONSUMER PRODUCTS - 3.7%
---------------------------------
12,000 Procter & Gamble, 8/3/00 11,996
15,000 Procter & Gamble, 8/21/00 14,945
--------------------------------- ---------
Total 26,941
--------------------------------- ---------
ENERGY - 7.2%
---------------------------------
10,000 Chevron Corp., 8/8/00 9,987
15,000 Chevron Corp., 8/17/00 14,956
15,000 Georgia Power, 8/9/00 14,978
11,850 Georgia Power, 8/23/00 11,803
--------------------------------- ---------
Total 51,724
--------------------------------- ---------
FINANCIAL - 27.4%
---------------------------------
15,000 A.I. Credit Corp., 8/31/00 14,919
10,000 American Express Credit Corp.,
8/7/00 9,989
10,000 American Express Credit Corp.,
8/11/00 9,982
10,000 American Express Credit Corp.,
8/15/00 9,975
10,000 AT&T Credit Corp., 9/5/00 9,937
10,000 Daimler Chrysler Financial Co.,
LLC, 8/4/00 9,995
10,000 Daimler Chrysler Financial Co.,
LLC, 8/18/00 9,969
15,000 Ford Motor Credit Corp., 8/3/00 14,995
10,000 Ford Motor Credit Corp., 8/25/00 9,957
10,000 General Electric
Capital Corp., 8/2/00 9,998
9,000 General Electric Capital
Corp., 9/6/00 8,941
10,200 General Electric Capital
Corp., 9/27/00 10,095
10,000 General Motors Acceptance Corp.,
8/28/00 9,951
20,000 IBM Credit Corp., 8/1/00 20,000
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
$ 10,000 IBM Credit Corp., 8/14/00 $ 9,977
10,000 Metlife Funding, 8/18/00 9,969
10,000 Metlife Funding, 8/25/00 9,957
10,000 Prudential Funding, 8/21/00 9,964
--------------------------------- ---------
Total 198,570
--------------------------------- ---------
MISCELLANEOUS - 6.0%
---------------------------------
15,300 Dupont, 8/9/00 15,278
10,000 Tribune Co., 8/4/00 9,994
10,000 Tribune Co., 8/10/00 9,984
8,000 Tribune Co., 8/24/00 7,965
--------------------------------- ---------
Total 43,221
--------------------------------- ---------
Total Commercial Paper 503,365
--------------------------------- ---------
CORPORATE BONDS - 19.5%
BANKS - 3.6%
---------------------------------
4,000 Bank One Corp., Floating Rate Note,
11/17/00, (6.780%, 8/18/00) (b) 4,001
4,350 Bank of Amercia NA, 6.350%, 3/15/01 4,327
2,000 Bank of Amercia NA, Floating
Rate Note, 6/11/01,
(6.850%, 9/11/00) (b) 2,001
750 Chase Manhattan Corp., Floating Rate
Note, 12/8/00, (7.040%, 9/8/00) (b) 750
5,000 National City Bank, Floating
Rate Note, 9/18/00,
(6.810%, 9/18/00) (b) 5,001
1,000 Wachovia Corp., Floating
Rate Note, 9/28/00,
(6.770%, 9/28/00) (b) 1,000
5,250 Wells Fargo Co., 6.250%, 3/15/01 5,232
1,570 Wells Fargo Co., 6.875%, 5/10/01 1,567
2,000 Westdeutsche Landesbk NY,
Floating Rate Note, 3/23/01,
(6.540%, 8/25/00) (b) 1,999
--------------------------------- ---------
Total 25,878
--------------------------------- ---------
BROKERAGE - 2.8%
---------------------------------
7,000 Goldman Sachs Group, Floating Rate
Note, 8/9/00, (6.730%, 8/1/00) (b) 7,000
4,500 Merrill Lynch & Co., 6.330%, 8/25/00 4,500
5,000 Merrill Lynch & Co., Floating
Rate Note, 11/20/00,
(7.320%, 8/21/00) (b) 5,008
3,500 Salomon Smith Barney, Inc.,
5.875%, 2/1/01 3,486
--------------------------------- ---------
Total 19,994
--------------------------------- ---------
FINANCIAL - 9.5%
---------------------------------
7,400 Capital One Funding Corp., Floating
Rate Note, 10/1/21, (6.700%,
8/3/00) (b) 7,400
5,000 CIT Group, 6.500%, 11/20/00 4,995
7,295 CIT Group, 6.125%, 12/15/00 7,271
3,200 CIT Group, 6.800%, 2/1/01 3,200
10,000 CIT Group, Floating Rate Note,
2/14/01, (6.600%, 8/14/00) (b) 9,994
1,390 CIT Group, 6.700%, 2/26/01 1,383
3,600 CIT Group, 6.250%, 5/15/01 3,570
5,900 Daimler Chrysler Financial Co.,
LLC, 5.875%, 2/7/01 5,868
(See Notes which are an integral part of the Financial Statements)
4
<PAGE>
FIFTH THIRD PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JULY 31, 2000
(AMOUNTS IN THOUSANDS)
------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
$ 1,250 Daimler Chrysler Financial Co.,
LLC, 6.080%, 3/12/01 $ 1,244
6,500 Ford Motor Credit Corp., Floating
Rate Note, 8/18/00, (6.730%,
8/18/00) (b) 6,500
1,200 Ford Motor Credit Corp., 5.750%,
1/25/01 1,192
1,600 General Electric Capital Corp.,
7.160%, 4/03/01 1,587
1,000 General Motors Acceptance Corp.,
5.800%, 8/7/00 1,000
3,515 General Motors Acceptance Corp.,
5.200%, 10/26/00 3,504
2,000 General Motors Acceptance Corp.,
7.870%, 3/7/01 2,009
6,500 General Motors Acceptance Corp.,
5.350%, 4/16/01 6,423
1,500 General Motors Acceptance Corp.,
5.350%, 5/4/01 1,483
--------------------------------- ---------
Total 68,623
--------------------------------- ---------
HEALTHCARE - 1.1%
---------------------------------
8,110 Landmark Medical LLC, Floating
Rate Note, 1/1/21, (6.750%,
8/3/00) (b) 8,110
--------------------------------- ---------
Total 8,110
--------------------------------- ---------
TECHNOLOGY - 2.5%
---------------------------------
5,000 AT&T Corp., Floating Rate Note,
7/13/01, (6.750%, 10/13/00) (b) 5,000
8,000 AT&T Corp., Floating Rate Note,
12/20/00, (7.510%,9/20/00) (b) 8,021
5,000 AT&T Corp., Floating Rate Note,
7/19/01, (6.660%, 8/21/00) (b) 5,000
--------------------------------- ---------
Total 18,021
--------------------------------- ---------
Total Corporate Bonds 140,626
--------------------------------- ---------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
MUNICIPAL BONDS - 2.7%
$ 4,900 Anaheim, California, Municipal
Bond Floating Rate, 12/1/22,
(6.62%, 8/7/00) $ 4,900
2,700 Evanston, Illinois, Municipal Bond
Floating Rate, 12/1/21, (6.700%,
8/2/00) (b) 2,700
6,600 Illinois Educational Facilities
Athority, Municipal Bond Floating
Rate, 3/1/34, (6.700%, 8/2/00) (b) 6,600
5,000 Missouri Health Facilities - SSM
Healthcare, Floating Rate Note,
6/1/25, (6.620%, 8/2/00) (b) 5,000
--------------------------------- ---------
Total 19,200
--------------------------------- ---------
Total Municipal Bonds 19,200
--------------------------------- ---------
REPURCHASE AGREEMENTS - 8.5%
61,715 Warburg/Dillon, 6.550%, dated
7/31/00, due 8/1/00, collateralized
by U.S. Treasury Notes,
5.875%-6.250%, due
11/30/01-2/15/03
with a value of $62,950. 61,715
--------------------------------- ---------
Total Repurchase Agreements 61,715
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $724,906) (A) - 100.2% 724,906
---------------------------------
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.2%) (1,410)
--------------------------------- ---------
TOTAL NET ASSETS - 100% $723,496
--------------------------------- ---------
(a) Also represents cost for federal tax purposes.
(b) Current rate and next demand date shown.
(See Notes which are an integral part of the Financial Statements)
5
<PAGE>
FIFTH THIRD GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2000
(AMOUNTS IN THOUSANDS)
------------------------------------------------------
PAR SECURITY AMORTIZED
VALUE DESCRIPTION COST
--------- --------------------------------- ---------
U.S. GOVERNMENT AGENCIES - 99.6%
FEDERAL FARM CREDIT BANK - 9.6%
---------------------------------
$ 8,000 Discount Note, 8/14/00 $ 7,981
15,000 Discount Note, 8/22/00 14,944
1,500 6.125%, 9/1/00 1,499
8,035 6.650%, 9/1/00 8,034
2,000 6.150%, 9/1/00 1,999
2,573 6.250%, 10/2/00 2,570
9,000 Discount Note, 10/6/00 8,893
--------------------------------- ---------
Total 45,920
--------------------------------- ---------
FEDERAL HOME LOAN BANK - 57.5%
---------------------------------
10,000 Discount Note, 8/2/00 9,998
8,000 Discount Note, 8/3/00 7,997
15,000 Discount Note, 8/4/00 14,992
10,000 5.710%, 8/9/00 9,998
10,000 Discount Note, 8/9/00 9,986
4,750 5.620%, 8/10/00 4,749
10,000 Discount Note, 8/11/00 9,983
15,000 Discount Note, 8/16/00 14,963
10,000 Discount Note, 8/18/00 9,970
10,000 Discount Note, 8/25/00 9,957
8,245 Discount Note, 8/30/00 8,203
17,830 Discount Note, 9/6/00 17,716
10,000 Discount Note, 9/13/00 9,923
15,750 Discount Note, 9/20/00 15,610
10,000 Discount Note, 9/29/00 9,895
4,000 5.950%, 10/6/00 3,997
6,000 Discount Note, 10/6/00 5,929
9,900 Floating Rate Note, 10/12/00
(6.487%, 8/8/00) (b) 9,892
11,130 6.050%, 11/3/00 11,121
5,000 5.970%, 12/1/00 4,990
1,000 4.735%, 12/15/00 994
PAR SECURITY AMORTIZED
VALUE DESCRIPTION COST
--------- --------------------------------- ---------
$ 3,600 6.640%, 12/15/00 $ 3,587
5,000 5.500%, 12/22/00 4,974
1,000 5.150%, 2/9/01 991
4,255 6.465%, 2/16/01 4,248
5,000 5.375%, 3/2/01 4,958
10,845 6.500%, 3/15/01 10,814
1,515 6.450%, 3/16/01 1,511
6,945 5.625%, 3/19/01 6,894
25,000 Floating Rate Note, 4/3/01
(6.234%, 8/8/00) (b) 25,000
5,000 5.165%, 4/12/01 4,943
5,000 6.870%, 5/17/01 5,000
--------------------------------- ---------
Total 273,783
--------------------------------- ---------
STUDENT LOAN MARKETING
ASSOCIATION - 32.5%
---------------------------------
25,000 Floating Rate Note, 8/17/00
(6.469%, 8/17/00) (b) 25,000
13,000 6.050%, 9/14/00 12,995
2,000 4.750%, 12/11/00 1,988
2,000 4.800%, 12/18/00 1,988
9,000 Floating Rate Note, 3/9/01
(6.700%, 9/9/00) (b) 9,002
103,700 Master Note, 6.537%, 10/1/00 (c) 103,700
--------------------------------- ---------
Total 154,673
--------------------------------- ---------
Total U.S. Government Agencies 474,376
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $474,376) (A) - 99.6% 474,376
---------------------------------
OTHER ASSETS IN EXCESS
OF LIABILITIES - 0.4% 1,807
--------------------------------- ---------
TOTAL NET ASSETS - 100.0% $476,183
--------------------------------- ---------
(a) Also represents cost for federal tax purposes.
(b) Current rate and demand date shown.
(c) Current rate shown.
(See Notes which are an integral part of the Financial Statements)
6
<PAGE>
FIFTH THIRD U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2000
(AMOUNTS IN THOUSANDS)
------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
U.S. TREASURY NOTES - 20.0%
$ 30,000 6.000%, 8/15/00 $ 30,004
20,000 6.250%, 8/31/00 20,012
30,000 5.750%, 10/31/00 29,960
25,000 5.750%, 11/15/00 24,964
10,000 5.250%, 1/31/01 9,947
10,000 5.375%, 2/15/01 9,925
20,000 5.625%, 2/28/01 19,892
20,000 8.000%, 5/15/01 20,227
10,000 6.500%, 5/31/01 10,002
--------------------------------- ---------
Total U.S. Treasury Notes 174,933
--------------------------------- ---------
REPURCHASE AGREEMENTS - 80.1%
104,000 ABN AMRO, 6.55%, Dated 7/31/00,
Due 8/1/00 collateralized by U.S.
Treasury Notes, 5.875% -6.250%,
due 10/31/01 with a value of $48,359
and U.S. Treasury Bonds,
6.125% - 8.750%, due
5/15/17 - 8/15/29 with a
value of $57,722. 104,000
40,000 Bank Of America, 6.51%,
Dated 7/31/00, Due 8/1/00
collateralized by a U.S.
Treasury Note, 6.000% due 8/15/09
with a value of $16,485, and a U.S.
Treasury Bill due 5/31/01
with a value of $24,316. 40,000
40,000 Bank One, 6.55%, Dated 7/31/00,
Due 8/1/00 collateralized by a U.S.
Treasury Note, 6.250% due 1/31/02
with a value of $40,890 40,000
104,000 Barclays Capital, 6.55%, Dated
7/31/00, Due 8/1/00
collateralized by a U.S.
Treasury Note, 6.250%
due 1/31/02 with a value
of $106,080. 104,000
40,000 Bear Stearns, 6.54% Dated 7/31/00,
Due 8/1/00 collateralized by U.S.
Treasury Bonds, 5.250% - 14.000%,
with a value of $24,221, and U.S.
Treasury Notes, 4.625% -7.500% due
11/30/00 - 8/15/07,
with a value of $17,219. 40,000
40,000 Chase Securities, 6.55%, Dated 7/31/00,
Due 8/1/00 collateralized by U.S.
Treasury Bonds, 7.875% - 11.250%,
due 5/15/03 - 2/15/21 with a value
of $40,806. 40,000
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
$ 40,000 Duetsche Bank, 6.54%, Dated 7/31/00,
Due 8/1/00 collateralized by a U.S.
Treasury Note, 6.500% due 8/15/05,
with a value of $1,712,
and U.S. Treasury Notes,
10.750% -13.375% due 8/15/01 -
2/15/03 with a value of $39,089. $ 40,000
40,000 J.P. Morgan, 6.55%, Dated 7/31/00,
Due 8/1/00 collateralized by a U.S.
Treasury Bond, 7.500% due 11/15/16
with a value of $40,801. 40,000
40,000 Nesbitt Burns, 6.54%, Dated 7/31/00,
Due 8/1/00 collateralized by U.S
Treasury Notes, 5.250% - 8.500% due
11/15/00 - 8/15/09 with a value
of $25,870, and U.S. Treasury Bonds,
6.125% - 13.250% due 5/15/14 -
11/15/27 with a value of $14,931. 40,000
104,000 SG Cowen, 6.55%, Dated 7/31/00,
Due 8/1/00 collateralized by a U.S.
Treasury Note, 6.875% due 5/15/06
with a value of $46,706, a
U.S. Treasury Bond, 8.750%
due 5/15/17 with a value
of $59,448. 104,000
105,952 Warburg/Dillion, 6.55%, Dated 7/31/00,
Due 8/1/00 collateralized by a U.S.
Treasury Bond, 6.250% due 8/15/23
with a value of $99,594, and a U.S.
Treasury Note, 3.375% due 1/15/07
with a value of $8,477. 105,952
--------------------------------- ---------
Total Repurchase Agreements 697,952
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $872,885) (A) - 100.1% 872,885
--------------------------------- ---------
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.1)% (1,228)
--------------------------------- ---------
TOTAL NET ASSETS - 100% $871,657
--------------------------------- ---------
(a) Also represents cost for federal tax purposes
(See Notes which are an integral part of the Financial Statements)
7
<PAGE>
FIFTH THIRD TAX EXEMPT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 2000
(AMOUNTS IN THOUSANDS)
------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
COMMERCIAL PAPER - 22.3%
$ 2,100 Cornell, Michigan, 4.250%,
10/11/00 $ 2,100
5,000 Corpus Christi, Texas,
Utility system,
4.350%, 9/12/00 5,000
2,000 Dallas, Texas, Waterworks
and Sewer, 4.300%, 8/14/00 2,000
2,000 Illinois Health Facilities
Authority, 4.300%, 9/11/00 2,000
1,000 Illinois Health Facilities
Authority, 4.400%, 10/12/00 1,000
3,000 Intermountain Power Agency,
Utah, Public Facilities
Commission, 3.950%, 8/21/00 3,000
2,000 Louisiana, 4.350%, 11/14/00 2,000
5,000 University of Michigan,
4.000%, 8/7/00 5,000
5,000 Sweetwater, Wyoming, Pollution
control, 4.100%, 9/7/00 5,000
2,000 University of Texas, 4.375%,
8/3/00 2,000
--------------------------------- ---------
Total Commercial Paper 29,100
--------------------------------- ---------
MUNICIPAL BONDS - 77.9%
GENERAL OBLIGATION - 7.5%
---------------------------------
800 Clark County, Ohio, 4.750%, 4/12/01 802
260 Cuyahoga County, Ohio, 5.000%,
7/12/01 261
1,300 Fairfield County, Ohio, 4.950%,
11/9/00 1,302
450 Greene County, Ohio, 5.300%,
11/21/00 451
375 Lockland, Ohio, City School District,
4.350%, 12/1/00 375
300 Lyndhurst, Ohio, 4.625%, 3/15/01 301
440 Middleburg Heights, Ohio, 4.875%,
8/10/01 441
1,335 Pepper Pike, Ohio, 4.800%, 5/10/01 1,337
250 Solon, Ohio, School District,
6.850%, 12/1/00 252
900 Tallmadge, Ohio, 4.750%, 4/26/01 902
600 Tallmadge, Ohio, 4.850%, 9/21/00 600
1,000 Union Scioto, Ohio, Local School
District, 4.900%, 12/8/00 1,002
1,811 Wyoming, Ohio, 4.750%, 3/14/01 1,812
--------------------------------- ---------
Total 9,838
--------------------------------- ---------
REVENUE BONDS - 70.4%
---------------------------------
4,000 Bexar County, Texas, Housing
Finance, Floating Rate Note,
6/1/05 (4.500%, 8/2/00) (b) 4,000
1,700 Burke County, Georgia, Development
Authority Pollution Control,
Floating Rate Note, 7/1/24
(4.250%, 8/1/00) (b) 1,700
3,000 Chicago, Illinois, O'Hare
International Airport,
Floating Rate Note, 1/1/15
(4.250%, 8/2/00) (b) 3,000
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
$ 4,000 Detroit, Michigan, Sewer Disposal,
Floating Rate Note, 7/1/23 (4.300%,
8/2/00) (b) $ 4,000
4,000 Farmington, New Mexico, Pollution
Control, Floating Rate Note, 9/1/24
(4.200%, 8/1/00) (b) 4,000
3,600 Illinois Educational Facilities
Authority, Floating Rate Note,
3/1/27 (4.300%, 8/2/00) (b) 3,600
2,500 Illinois Educational Facilities
Authority, Floating Rate Note,
11/1/30 (4.250%, 8/2/00) (b) 2,500
3,000 Indiana Health Facilities
Financial Authority,
Floating Rate Note, 1/1/20
(4.250%, 8/2/00) (b) 3,000
2,000 Indiana State Educational
Facilities Authority,
Floating Rate Note, 6/1/28
(4.300%, 8/2/00) (b) 2,000
1,400 Indianapolis, Indiana, Industrial
Economic Development, Floating
Rate Note, 3/1/13 (4.350%,
8/2/00) (b) 1,400
4,800 Iowa Financial Authority, Floating
Rate Note, 8/15/12 (4.300%,
8/2/00) (b) 4,800
1,500 Jackson County, Mississippi,
Pollution Control,
Floating Rate Note, 12/1/16
(4.200%, 8/1/00) (b) 1,500
3,000 Kansas City, Missouri, Industrial
Development Authority Hospital,
Floating Rate Note, 10/15/14
(4.350%, 8/1/00) (b) 3,000
1,100 Kansas City, Missouri, Industrial
Development Authority Hospital,
Floating Rate Note, 4/15/15
(4.350%, 8/1/00) (b) 1,100
4,000 Kentucky Economic Development
Financial Authority Hospital
Facilities, Floating Rate Note,
1/1/22 (4.250%, 8/2/00) (b) 4,000
500 Lancaster County, South Carolina,
Water And Sewer System, 6.750%,
5/1/21 (Prerefunded 5/1/01 @ 102) 515
5,400 Los Angeles, California, Regional
Airports, Floating Rate Note,
12/1/25 (4.400%, 8/1/00) (b) 5,400
400 Lower Neches Valley Authority,
Texas, Floating Rate Note,
2/15/17 (3.950%, 8/15/00) (b) 400
1,200 Maryland State Health And Higher
Education, Floating Rate Note,
7/1/24 (4.300%, 8/2/00) (b) 1,200
1,100 Massachusetts State Industrial
Financial Agency, 7.000%, 11/1/19
(Prerefunded 11/1/00 @ 100) (b) 1,108
(See Notes which are an integral part of the Financial Statements)
8
<PAGE>
FIFTH THIRD TAX EXEMPT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JULY 31, 2000
(AMOUNTS IN THOUSANDS)
------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
$ 5,000 Michigan State Hospital Financial
Authority, Floating Rate
Note, 12/1/23
(4.200%, 8/2/00) (b) $ 5,000
2,200 Michigan State Strategic Fund
Limited Obligation, Floating
Rate Note, 9/1/30
(4.350%, 8/1/00) (b) 2,200
1,200 Minneapolis, Minnesota, Housing
And Redevelopment, 8.000%, 8/15/14
(Prerefunded 8/15/00 @ 102) (b) 1,206
6,100 Minneapolis, Minnesota, Housing
And Redevelopment, Floating
Rate Note, 8/15/25
(4.350%, 8/1/00) (b) 6,100
1,200 Montgomery County, Ohio, Health
Care Facilities, Floating
Rate Note, 12/1/08
(4.350%, 8/3/00) (b) 1,200
600 New York City, New York, Municipal
Water Authority, Water & Sewer System,
Floating Rate Note, 6/15/24
(4.150%, 8/1/00) (b) 600
2,500 North Carolina Educational Facilities,
Floating Rate Note, 9/1/20
(4.300%, 8/3/00) (b) 2,500
5,200 Ohio State Air Quality Development
Authority, Floating Rate Note,
12/1/15 (4.450%, 8/1/00) (b) 5,200
4,500 Perry County, Mississippi, Pollution
Control, Floating Rate Note, 3/1/02
(4.200%, 8/1/00) (b) 4,500
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------- ---------
$ 1,745 Rushville, Indiana, Economic
Development, Floating Rate Note,
7/1/16 (4.380%, 8/2/00) (b) $ 1,745
2,965 Tulsa, Oklahoma, Industrial
Authority, Floating Rate Note,
6/1/14 (4.400%, 8/3/00) (b) 2,965
1,875 Vincennes, Indiana, Economic
Development, Floating Rate Note,
7/1/15 (4.380%, 8/3/00) (b) 1,875
3,710 Washington State Health Care
Facilities Authority, Floating
Rate Note, 10/1/05
(4.200%, 8/1/00) (b) 3,710
1,000 Wisconsin State Health Facilities
Authority, Floating Rate Note,
1/1/16 (4.250%, 8/2/00) (b) 1,000
--------------------------------- ---------
Total 92,024
--------------------------------- ---------
Total Municipal Bonds 101,862
--------------------------------- ---------
MONEY MARKET - 0.0%
6 SEI Institutional Tax Free Fund 6
--------------------------------- ---------
Total Money Market 6
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $130,968) (A) - 100.2% 130,968
--------------------------------- ---------
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.2%) (280)
--------------------------------- ---------
TOTAL NET ASSETS - 100% $130,688
--------------------------------- ---------
(a) Also represents cost for federal tax purposes.
(b) Current rate and next reset date shown.
(See Notes which are an integral part of the Financial Statements)
9
<PAGE>
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2000
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
PRIME GOVERNMENT U.S. TREASURY TAX EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at amortized cost
(Cost $663,191; $474,376; $663,191 $474,376 $174,933 $130,968
$174,933 and $130,968, respectively)
Repurchase agreements, at amortized cost
(Cost $61,715; $0;
$697,952 and $0, respectively) 61,715 -- 697,952 --
-------------- -------------- -------------- --------------
Total Investments 724,906 474,376 872,885 130,968
Cash 24 45 -- 10
Interest receivable 2,121 4,256 3,391 588
Receivable for Fund shares sold 167 189 -- --
Prepaid expenses and other assets 41 105 71 16
-------------- -------------- -------------- --------------
Total Assets 727,259 478,971 876,347 131,582
-------------- -------------- -------------- --------------
LIABILITIES:
Dividends payable 3,462 2,447 4,466 421
Payable for investments purchased -- -- -- 441
Accrued expenses and other payables:
Investment advisory fees 216 169 194 --
Administration fees -- 17 -- --
Distribution fees 44 47 -- 2
Other 41 108 30 30
-------------- -------------- -------------- --------------
Total Liabilities 3,763 2,788 4,690 894
-------------- -------------- -------------- --------------
NET ASSETS:
Paid-in Capital 723,502 476,153 871,605 130,701
Accumulated undistributed net realized gains
(losses) on investment transactions (6) (393) (195) (13)
Undistributed net investment income -- 423 247 --
-------------- -------------- -------------- --------------
Total Net Assets $723,496 $476,183 $871,657 $130,688
============== ============== ============== ==============
Net assets:
Institutional Shares 508,414 211,790 871,657 100,995
Investment A Shares 215,082 264,393 NA 29,693
-------------- -------------- -------------- --------------
Total $723,496 $476,183 $871,657 $130,688
============== ============== ============== ==============
Outstanding units of beneficial interest (shares)
Institutional Shares 508,429 211,759 871,598 100,998
Investment A Shares 215,083 264,411 NA 29,705
-------------- -------------- -------------- --------------
Total 723,512 476,170 871,598 130,703
============== ============== ============== ==============
Net Asset Value
Offering and redemption price per share -
Institutional Shares and Investment A Shares $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============== ==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
10
<PAGE>
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
PRIME GOVERNMENT U.S. TREASURY TAX EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
-------------- -------------- -------------- --------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income $33,771 $32,462 $51,078 $3,620
-------------- -------------- -------------- --------------
Total Income 33,771 32,462 51,078 3,620
-------------- -------------- -------------- --------------
EXPENSES:
Investment advisory fees 2,260 2,274 3,627 477
Administrative fees 958 1,060 1,539 167
Distribution services - Investment A Shares 348 804 -- 62
Fund accounting fees 116 141 162 57
Transfer agent fees 34 24 43 25
Trustees' fees 3 5 5 1
Professional fees 16 25 30 12
Custodian fees 30 37 61 11
Miscellaneous fees 89 56 155 45
-------------- -------------- -------------- --------------
Total Expenses 3,854 4,426 5,622 857
-------------- -------------- -------------- --------------
Less fees voluntarily reduced (576) (542) (2,176) (544)
-------------- -------------- -------------- --------------
Net Expenses 3,278 3,884 3,446 313
-------------- -------------- -------------- --------------
Net Investment Income 30,493 28,578 47,632 3,307
-------------- -------------- -------------- --------------
REALIZED LOSSES FROM INVESTMENTS:
Net realized losses from investment transactions (6) -- (195) (3)
-------------- -------------- -------------- --------------
Change in net assets resulting from operations $30,487 $28,578 $47,437 $3,304
============== ============== ============== ==============
</TABLE>
(See notes which are in an integral part of the financial statements)
11
<PAGE>
FIFTH THIRD FUNDS STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
GOVERNMENT
PRIME MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, 2000 JULY 31, 1999 JULY 31, 2000 JULY 31, 1999
-------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 30,493 $ 19,140 $ 28,578 $ 30,404
Net realized gains/(losses) on
investment transactions (6) 3 -- 27
-------------- -------------- -------------- --------------
Change in net assets resulting from operations 30,487 19,143 28,578 30,431
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO INSTITUTIONAL SHAREHOLDERS:
From net investment income (23,129) (16,776) (12,744) (12,423)
DISTRIBUTIONS TO INVESTMENT A SHAREHOLDERS:
From net investment income (7,364) (2,365) (15,830) (17,952)
-------------- -------------- -------------- --------------
Change in net assets from
shareholder distributions (30,493) (19,141) (28,574) (30,375)
-------------- -------------- -------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS:
Proceeds from shares issued 1,860,423 1,164,194 819,496 683,747
Assets acquired from reorganization (a) -- -- -- 445,341
Dividends reinvested 1,036 440 1,290 7,325
Cost of shares redeemed (1,561,347) (1,146,146) (978,699) (873,697)
-------------- -------------- -------------- --------------
Change in net assets from share transactions 300,112 18,488 (157,913) 262,716
-------------- -------------- -------------- --------------
Change in net assets 300,106 18,490 (157,909) 262,772
NET ASSETS:
Beginning of period 423,390 404,900 634,092 371,320
-------------- -------------- -------------- --------------
End of period $ 723,496 $ 423,390 $ 476,183 $ 634,092
============== ============== ============== ==============
Undistributed net investment income -- -- $ 423 $ 415
============== ============== ============== ==============
</TABLE>
(a)Represents net assets of the Cardinal Government Securities Money Market
Fund which were acquired in a tax-free reorganization on September 21, 1998.
(See notes which are an integral part of the financial statements)
12
<PAGE>
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
U.S. TREASURY
MONEY MARKET FUND TAX EXEMPT MONEY MARKET FUND
-------------------------------- -----------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JULY 31, 2000 JULY 31, 1999 JULY 31, 2000 JULY 31, 1999 (a) SEPT. 30, 1998
-------------- -------------- -------------- ---------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C> <C>
Net investment income $ 47,632 $ 42,353 $ 3,307 $ 968 $ 1,756
Net realized gains/(losses)
on investment transactions (195) 236 (3) (8) (2)
-------------- -------------- -------------- -------------- --------------
Change in net assets resulting
from operations 47,437 42,589 3,304 960 1,754
-------------- -------------- -------------- -------------- --------------
DISTRIBUTIONS TO INSTITUTIONAL
SHAREHOLDERS:
From net investment income (47,632) (42,379) (829) (188) (6)
DISTRIBUTIONS TO INVESTMENT A
SHAREHOLDERS:
From net investment income -- -- (2,478) (780) (1,750)
-------------- -------------- -------------- -------------- --------------
Change in net assets from
shareholder distributions (47,632) (42,379) (3,307) (968) (1,756)
-------------- -------------- -------------- -------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS:
Proceeds from shares issued 2,529,768 2,079,693 233,738 97,644 182,537
Dividends reinvested 6,522 7,299 63 267 1,648
Cost of shares redeemed (2,520,724) (2,107,005) (147,507) (105,953) (192,020)
-------------- -------------- -------------- -------------- --------------
Change in net assets from
share transactions 15,566 (20,013) 86,294 (8,042) (7,835)
-------------- -------------- -------------- -------------- --------------
Change in net assets 15,371 (19,803) 86,291 (8,050) (7,837)
NET ASSETS:
Beginning of period 856,286 876,089 44,397 52,447 60,284
-------------- -------------- -------------- -------------- --------------
End of Period $ 871,657 $ 856,286 $130,688 $ 44,397 $ 52,447
============== ============== ============== ============== ==============
Undistributed net investment income $ 247 $ 20 -- -- --
============== ============== ============== ============== ==============
</TABLE>
(a) Reflects operations for the period October 1, 1998 through July 31, 1999.
(See notes which are an integral part of the financial statements)
13
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2000
--------------------------------------------------------------------------------
(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 "Act"),
as an open-end management investment company. At July 31, 2000, the Trust
consisted of seventeen separate investment portfolios. The accompanying
financial statements and notes relate only to the Prime Money Market Fund
(formerly known as the Commercial Paper Fund), Government Money Market Fund
(formerly known as the Government Cash Reserves Fund), U.S. Treasury Money
Market Fund (formerly known as the U.S. Treasury Obligations Fund), and the Tax
Exempt Money Market Fund (individually the "Fund" and collectively the
"Funds").
The Prime Money Market Fund, Government Money Market Fund, and the Tax Exempt
Money Market Fund offer two classes of shares: Institutional Shares (formerly
known as Trust Shares) and Investment A Shares (formerly known as Investment
Shares). Each class of shares has identical rights and privileges except with
respect to distribution (12b-1) fees paid by the Investment A Shares, voting
rights on matters affecting a single class of shares and the exchange privileges
of each class of shares. The U.S. Treasury Money Market Fund offers only
Institutional Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with accounting principles generally accepted in the
United States. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the period. Actual results could differ from those
estimates.
A. SECURITIES VALUATIONS--Investments of the Funds are valued at either
amortized cost, which approximates market value, or at original cost, which
combined with accrued interest approximates market value. Under the amortized
cost method, discount or premium is accreted or amortized on a constant basis to
the maturity of the security.
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 or accretion of the premium or discount.
Gains or losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
14
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JULY 31, 2000
--------------------------------------------------------------------------------
D. 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.
E. DIVIDENDS TO SHAREHOLDERS--Dividends from net investment income are declared
daily and paid monthly and distributable net realized gains, if any, are
declared and distributed at least annually. Dividends from net investment income
and from net realized capital gains are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for expiring capital
loss carryforwards and deferrals of certain losses.
Dividends and distributions to shareholders which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as distributions 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
distributions of capital.
15
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JULY 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
Transactions in Fund shares were as follows (amounts in thousands):
PRIME GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, 2000 JULY 31, 1999 JULY 31, 2000 JULY 31, 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued $ 1,354,116 $ 1,076,548 $ 418,802 $ 451,018
Dividends reinvested 1,036 440 -- --
Shares redeemed (1,195,099) (1,096,972) (460,001) (419,089)
-------------- -------------- -------------- --------------
INSTITUTIONAL SHARES $ 160,053 $ (19,984) $ (41,199) $ 31,929
-------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued $ 506,307 $ 87,646 $ 400,694 $ 232,729
Shares issued for reorganization (a) -- -- -- 445,341
Dividends reinvested -- -- 1,290 7,325
Shares redeemed (366,248) (49,174) (518,698) (454,608)
-------------- -------------- -------------- --------------
INVESTMENT A SHARES $ 140,059 $ 38,472 $(116,714) $ 230,787
-------------- -------------- -------------- --------------
TOTAL NET INCREASE (DECREASE) FROM
CAPITAL TRANSACTIONS $ 300,112 $ 18,488 $(157,913) $ 262,716
============== ============== ============== ==============
SHARE TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued 1,354,108 1,076,548 418,800 451,018
Dividends reinvested 1,035 440 -- --
Shares redeemed (1,195,083) (1,096,970) (460,001) (419,089)
-------------- -------------- -------------- --------------
INSTITUTIONAL SHARES 160,060 (19,982) (41,201) 31,929
-------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued 506,306 87,646 400,694 232,666
Shares issued for reorganization -- -- -- 445,357
Dividends reinvested 1 -- 1,290 7,325
Shares redeemed (366,247) (49,174) (518,710) (454,494)
-------------- -------------- -------------- --------------
INVESTMENT A SHARES 140,060 38,472 (116,726) 230,854
-------------- -------------- -------------- --------------
TOTAL NET INCREASE (DECREASE) FROM
CAPITAL TRANSACTIONS 300,120 18,490 (157,927) 262,783
============== ============== ============== ==============
</TABLE>
(a)Represents shares issued to acquire the net assets of the Cardinal
Government Securities Money Market Fund on September 21, 1998.
16
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JULY 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
U.S. TREASURY TAX EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- ----------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JULY 31, 2000 JULY 31, 1999 JULY 31, 2000 JULY 31, 1999* SEPT. 30, 1998
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued $ 2,529,768 $ 2,079,693 $ 207,941 $ 87,092 $ 12,864
Dividends reinvested 6,522 7,299 -- -- --
Shares redeemed (2,520,724) (2,107,005) (124,626) (77,363) (4,910)
-------------- -------------- -------------- -------------- --------------
INSTITUTIONAL SHARES $ 15,566 $ (20,013) $ 83,315 $ 9,729 $ 7,954
-------------- -------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued $ NA $ NA $ 25,797 $ 10,552 $ 169,673
Dividends reinvested NA NA 63 267 1,648
Shares redeemed NA NA (22,881) (28,590) (187,110)
-------------- -------------- -------------- -------------- --------------
INVESTMENT A SHARES $ NA $ NA $ 2,979 $(17,771) $ (15,789)
-------------- -------------- -------------- -------------- --------------
TOTAL NET INCREASE (DECREASE)
FROM CAPITAL TRANSACTIONS $ 15,566 $ (20,013) $ 86,294 $ (8,042) $ (7,835)
============== ============== ============== ============== ==============
SHARE TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued 2,529,765 2,079,689 207,941 87,092 12,864
Dividends reinvested 6,521 7,299 -- -- --
Shares redeemed (2,520,724) (2,107,005) (124,626) (77,363) (4,910)
-------------- -------------- -------------- -------------- --------------
INSTITUTIONAL SHARES 15,562 (20,017) 83,315 9,729 7,954
-------------- -------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued NA NA 25,797 10,552 169,674
Dividends reinvested NA NA 63 266 1,648
Shares redeemed NA NA (22,881) (28,589) (187,110)
-------------- -------------- -------------- -------------- --------------
INVESTMENT A SHARES NA NA 2,979 (17,771) (15,788)
-------------- -------------- -------------- -------------- --------------
TOTAL NET INCREASE (DECREASE) FROM
CAPITAL TRANSACTIONS 15,562 (20,017) 86,294 (8,042) (7,834)
============== ============== ============== ============== ==============
</TABLE>
* Reflects operations for the period October 1, 1998 through July 31, 1999.
17
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JULY 31, 2000
--------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(AMOUNTS IN THOUSANDS)
INVESTMENT ADVISORY FEE--Fifth Third Bank, the Trust's investment Advisor (the
"Advisor"), receives for its services investment advisory fees at annual rates
equal to the percentages that follow of the relevant Fund's average daily net
assets: Prime Money Market Fund, Government Money Market Fund and U.S. Treasury
Money Market Fund - 0.40%; and Tax Exempt Money Market Fund - 0.50%.
The Advisor may voluntarily choose to waive a portion of its fee and reimburse
certain operating expenses of the Funds. The Advisor can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion. For
the year ended July 31, 2000, the Advisor waived $113, $1,269 and $477 in
advisory fees for the Prime Money Market Fund, the U.S. Treasury Money Market
Fund and the Tax Exempt Money Market Fund, respectively.
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 Funds with certain
administrative personnel and services necessary to operate the Funds. Pursuant
to a separate agreement with BISYS, Fifth Third Bank performs sub-administrative
services on behalf of the Funds including providing certain administrative
personnel and services necessary to operate the Funds, for which it receives a
fee from BISYS computed daily as a percentage of the daily net assets of the
Funds. 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. For the year ended
July 31, 2000, the administrator waived $463, $381, $907, and $22 in
administration fees for the Prime Money Market Fund, the Government Money Market
Fund, the U.S. Treasury Money Market Fund, and Tax Exempt Money Market Fund,
respectively.
DISTRIBUTION SERVICES FEE--The Prime Money Market Fund, the Government Money
Market Fund, and the Tax Exempt Money Market Fund have adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Effective December 1,
1995, BISYS serves as the Trust's principal distributor. Under the terms of the
Plan, the Funds will compensate the principal distributor from the net assets of
the Funds' Investment A Shares to finance activities intended to result in the
sales of each Funds' Investment A Shares. The Plan provides that the Funds may
incur distribution expenses up to 0.25% of the average daily net assets of the
Investment A Shares, annually, to compensate the distributor. The distributor
may voluntarily choose to waive all or a portion of its fee. The distributor can
modify or terminate this voluntary waiver at any time at its sole discretion.
For the year ended July 31, 2000, the distributor waived $161 and $44 in
distribution fees for the Government Money Market Fund and Tax Exempt Money
Market Fund, respectively.
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. The fee is based on the level of each Fund's average net assets
for the period, plus out-of-pocket expenses.
Fifth Third Bank also maintains the Funds' accounting records 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.
Fifth Third Bank is the Funds' 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.
18
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JULY 31, 2000
--------------------------------------------------------------------------------
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.
(5) FEDERAL INCOME TAXES
It is the policy of each Fund to qualify or continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal Revenue
Code, and to make distributions of net investment income and net realized
capital gains sufficient to relieve it from all, or substantially all, federal
income taxes.
At July 31, 2000, the following Funds had net capital loss carryforwards to
offset future net capital gains, if any, to the extent provided by the Treasury
regulations (amounts in thousands):
AMOUNT EXPIRES
----------------------------
Prime Money Market Fund $ 4 2008
Government Money Market Fund 293 2002
92 2004
2 2008
Tax Exempt Money Market Fund 2 2007
8 2008
U.S. Treasury Money Market Fund 136 2008
Capital losses incurred after October 31, within a Fund's fiscal year are deemed
to arise on the first business day of the following fiscal year for tax
purposes. The following Funds have incurred and will elect to defer such capital
losses (amounts in thousands):
POST-OCTOBER
CAPITAL LOSSES
-------------
Prime Money Market Fund $ 2
Government Money Market Fund 6
Tax Exempt Money Market Fund 3
U.S. Treasury Money Market Fund 59
During the fiscal year ended July 31, 2000 the Tax Exempt Money Market Fund
declared tax-exempt income distributions of $3,307.
--------------------------------------------------------------------------------
CHANGE IN INDEPENDENT AUDITOR
In March 2000, Ernst & Young LLP (Ernst & Young) resigned as independent auditor
of the Fifth Third Funds (the Funds). Arthur Andersen LLP (Arthur Andersen) was
selected as the Funds' independent auditor. The Funds' selection of Arthur
Andersen as its independent auditor was recommended by the Funds' audit
committee and was approved by the Funds' Board of Trustees.
The reports on the financial statements audited by Ernst & Young for the years
ended July 31, 1999 and prior for the Funds did not contain an adverse opinion
or a disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope or accounting principles. During the Funds' two most
recent fiscal years and up to and including March 2000, there were no
disagreements between the Funds and Ernst & Young on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedures, which disagreements, if not resolved to the satisfaction of Ernst &
Young, would have caused it to make reference to the subject matter of the
disagreements in connection with its reports on the financial statements for
such years.
19
<PAGE>
FIFTH THIRD PRIME MONEY MARKET FUND FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
----------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
INSTITUTIONAL SHARES
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
Total from investment operations 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Total distributions (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
TOTAL RETURN 5.53% 4.76% 5.25% 5.11% 5.20%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.52% 0.52% 0.52% 0.52% 0.49%
Net investment income 5.44% 4.66% 5.13% 4.99% 5.07%
Expense waiver/reimbursement (a) 0.10% 0.11% 0.12% 0.09% 0.08%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $508,414 $348,366 $368,348 $341,827 $300,821
YEAR ENDED JULY 31,
---------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
INVESTMENT A SHARES
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.04 0.05 0.05 0.05
-------- -------- -------- -------- --------
Total from investment operations 0.05 0.04 0.05 0.05 0.05
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.05) (0.04) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Total distributions (0.05) (0.04) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
TOTAL RETURN 5.27% 4.53% 5.25% 5.11% 5.20%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.77% 0.75% 0.52% 0.52% 0.49%
Net investment income 5.29% 4.39% 5.13% 4.99% 5.06%
Expense waiver/reimbursement (a) 0.10% 0.13% 0.47% 0.44% 0.40%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $215,082 $ 75,024 $ 36,552 $ 33,438 $ 19,341
</TABLE>
(a)This voluntary expense decrease is reflected in both the net expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
20
<PAGE>
FIFTH THIRD GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
INSTITUTIONAL SHARES
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
Total from investment operations 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Total distributions (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
TOTAL RETURN 5.31% 4.60% 5.13% 5.01% 5.11%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.57% 0.56% 0.52% 0.51% 0.50%
Net investment income 5.17% 4.52% 5.02% 4.90% 4.99%
Expense waiver/reimbursement (a) 0.07% 0.11% 0.12% 0.09% 0.07%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $211,790 $252,987 $221,034 $162,543 $132,326
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
INVESTMENT A SHARES
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.04 0.05 0.05 0.05
-------- -------- -------- -------- --------
Total from investment operations 0.05 0.04 0.05 0.05 0.05
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.05) (0.04) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Total distributions (0.05) (0.04) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
TOTAL RETURN 5.10% 4.41% 5.13% 5.00% 5.11%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.77% 0.75% 0.52% 0.51% 0.51%
Net investment income 4.93% 4.26% 5.02% 4.90% 4.97%
Expense waiver/reimbursement (a) 0.12% 0.17% 0.47% 0.44% 0.42%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $264,393 $381,105 $150,286 $110,543 $ 68,884
</TABLE>
(a)This voluntary expense decrease is reflected in both the net expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
21
<PAGE>
FIFTH THIRD U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
INSTITUTIONAL SHARES
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.06 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
Total from investment operations 0.06 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.06) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Total distributions (0.06) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
TOTAL RETURN 5.40% 4.68% 5.31% 5.11% 5.24%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.38% 0.38% 0.38% 0.42% 0.43%
Net investment income 5.26% 4.57% 5.19% 5.00% 5.10%
Expense waiver/reimbursement (a) 0.24% 0.24% 0.24% 0.17% 0.12%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $871,657 $856,286 $876,089 $539,087 $489,228
</TABLE>
(a)This voluntary expense decrease is reflected in both the net expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
22
<PAGE>
FIFTH THIRD TAX EXEMPT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31, JULY 31, SEPT. 30,
2000 1999* 1998**
-------- -------- --------
INSTITUTIONAL SHARES
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.04 0.03 --
-------- -------- --------
Total from investment operations 0.04 0.03 --
-------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.04) (0.03) --
-------- -------- --------
Total distributions (0.04) (0.03) --
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
======== ======== ========
TOTAL RETURN 3.46% 2.24%(a) 2.74%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.31% 0.61%(b) 0.63%(b)
Net investment income 3.51% 2.66%(b) 3.09%(b)
Expense waiver/reimbursement (c) 0.52% 0.33%(b) -- (b)
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $100,995 $ 17,682 $ 7,953
YEAR PERIOD
ENDED ENDED YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, --------------------------------------------
2000 1999* 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
INVESTMENT A SHARES***
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.03 0.03 0.03 0.03 0.03
-------- -------- -------- -------- -------- --------
Total from investment operations 0.03 0.03 0.03 0.03 0.03 0.03
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions to shareholders from
net investment income (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)
-------- -------- -------- -------- -------- --------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 3.40% 2.18%(a) 2.74% 2.72% 2.67% 3.02%
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.38% 0.75%(b) 0.71% 0.80% 0.89% 0.81%
Net investment income 3.33% 2.60%(b) 2.88% 2.79% 2.66% 2.99%
Expense waiver/reimbursement (c) 0.70% 0.44%(b) -- -- -- --
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 29,693 $ 26,715 $ 44,494 $ 60,284 $ 59,915 $ 64,780
</TABLE>
* Reflects operations for the period from October 1, 1998 through
July 31, 1999.
** Reflects operations for the period from September 21, 1998 (commencement of
operations) through September 30, 1998.
*** Information for the period prior to
September 21, 1998 is for the Tax Exempt Money Market Fund, the predecessor
fund of the Fifth Third Tax Exempt Money Market Fund.
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the net expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
23
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
--------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
the Fifth Third Funds:
We have audited the statements of assets and liabilities, including the schedule
of portfolio investments, of the Fifth Third Prime Money Market Fund, Fifth
Third Government Money Market Fund, Fifth Third U.S. Treasury Money Market Fund,
and Fifth Third Tax Exempt Money Market Fund (the Funds) of the Fifth Third
Funds as of July 31, 2000, and the related statements of operations, changes in
net assets and financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
statements and financial highlights for all periods presented prior to the year
ended July 31, 2000, were audited by other auditors whose reports dated
September 22, 1999 and November 14, 1997, expressed unqualified opinions on
those statements and financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 2000, by correspondence with the custodian and brokers or
by other appropriate auditing procedures where replies from brokers were not
received. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of July 31, 2000, the results of their operations, the changes in their
net assets and their financial highlights for the year then ended, in conformity
with accounting principles generally accepted in the United States.
/s/ Arthur Andersen LLP
Cincinnati, Ohio
September 6, 2000
24
