FIFTH THIRD PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- ------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
COMMERCIAL PAPER - 75.3%
BANKS - 8.6%
---------------------------------
$ 5,000 Bank One Corp., 3/15/00 $ 4,966
10,000 Bank One Corp., 3/31/00 9,907
10,000 Deutche Bank, 2/11/00 9,984
15,000 Deutche Bank, 3/1/00 14,929
6,000 Societe Generale, 3/1/00 5,974
--------------------------------- ---------
Total 45,760
--------------------------------- ---------
BROKERAGE - 3.5%
---------------------------------
12,000 Merrill Lynch, 2/22/00 11,960
7,000 Merrill Lynch, 2/23/00 6,977
--------------------------------- ---------
Total 18,937
--------------------------------- ---------
CONSUMER PRODUCTS - 6.7%
---------------------------------
5,000 Coca Cola Co., 2/8/00 4,995
10,000 Coca Cola Co., 2/15/00 9,978
5,000 Coca Cola Co., 2/16/00 4,988
4,000 Coca Cola Co., 2/24/00 3,986
12,000 Proctor & Gamble, 2/14/00 11,976
--------------------------------- ---------
Total 35,923
--------------------------------- ---------
FINANCIAL - 56.5%
---------------------------------
9,000 A.I. Credit Corp., 2/2/00 8,999
10,000 American Express Credit Corp.,
6/16/00 9,781
15,000 AT&T Credit Corp., 3/13/00 14,903
6,000 Associates First Capital Corp.,
2/29/00 5,973
18,000 Associates First Capital Corp.,
3/28/00 17,839
5,400 Bellsouth Capital Funding, 2/9/00 5,393
10,000 Bellsouth Capital Funding, 2/9/00 9,987
9,000 Bellsouth Capital Funding, 3/2/00 8,957
14,000 CIT Group, 3/7/00 13,922
14,000 Daimler Chrysler, 3/9/00 13,918
5,000 Daimler Chrysler, 4/25/00 4,933
5,000 Daimler Chrysler, 5/23/00 4,909
10,000 Dupont, 2/10/00 9,985
10,000 Dupont, 3/8/00 9,943
13,000 Ford Motor Credit Corp., 2/24/00 12,953
5,000 General Electric Capital Corp.,
2/4/00 4,987
6,000 General Electric Capital Corp.,
2/15/00 5,987
5,000 General Electric Capital Corp.,
2/17/00 4,998
12,000 GMAC, 2/14/00 11,976
8,000 GMAC, 4/18/00 7,900
7,000 IBM Credit Corp., 3/29/00 6,937
10,000 Metlife Funding, 2/18/00 9,973
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
$ 14,000 Metlife Funding, 2/8/00 $ 13,985
6,000 J.P. Morgan, 2/7/00 5,995
14,000 Prudential Funding, 3/6/00 13,925
5,000 Salomon Smith, Barney Inc., 2/1/00 5,000
5,000 Salomon Smith, Barney Inc., 2/2/00 4,999
7,000 Salomon Smith, Barney Inc., 2/10/00 6,990
7,000 Salomon Smith, Barney Inc., 2/28/00 6,970
10,000 U.B.S. Finance, 6/9/00 9,791
10,000 U.B.S. Finance, 8/14/00 9,693
5,000 Wells Fargo & Co., 2/16/00 4,988
5,000 Wells Fargo & Co., 2/18/00 4,987
10,000 Wells Fargo & Co., 3/13/00 9,935
--------------------------------- ---------
Total 302,411
--------------------------------- ---------
Total Commercial Paper 403,031
--------------------------------- ---------
CORPORATE BONDS - 7.3%
FINANCIAL - 3.3%
---------------------------------
4,000 Bank One, Floating Rate
Note, 11/17/00, (6.090%, 2/18/00) (b) 4,001
1,300 CIT Group, Monthly Floating Rate
Note, 3/21/00, (6.280%, 2/21/00) (b) 1,301
5,000 First National Bank of Chicago,
5.510%, 2/9/00 5,000
7,000 Goldman Sachs Group, Floating Rate
Note, 8/9/00 (5.900%, 3/9/00) (b) 7,000
--------------------------------- ---------
Total 17,302
--------------------------------- ---------
MANUFACTURING - 2.5%
---------------------------------
5,000 Ford Motor Credit Co., 6.840%,
6/5/00 5,018
6,500 Ford Motor Credit Co., Floating
Rate Note, 8/18/00,
(6.120%, 2/18/00) (b) 6,498
2,000 International Business Machines,
6.375%, 6/15/00 2,001
--------------------------------- ---------
Total 13,517
--------------------------------- ---------
TECHNOLOGY - 1.5%
8,000 AT&T Corp., Floating Rate
Note, 12/20/00, (6.870%, 3/15/00) (b) 8,048
--------------------------------- ---------
Total Corporate Bonds 38,867
--------------------------------- ---------
REPURCHASE AGREEMENTS - 17.8%
25,000 Barclays, 5.700%, dated 1/31/00,
due 2/1/00, collateralized by
U.S. Treasury Bill, due 7/6/00 with
a value of $25,500 25,000
25,000 SG Cowen, 5.700%, dated 1/31/00,
due 2/1/00, collateralized by
U.S. Treasury Notes, 6.500% - 6.625%,
due 5/31/01 - 4/30/02 with a value
of $25,212. 25,000
(See Notes which are an integral part of the Financial Statements)
3
<PAGE>
FIFTH THIRD PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- ------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
$ 45,549 Warburg/Dillon, 5.700%, dated
1/31/00, due 2/1/00, collateralized
by U. S. Treasury Note, 13.125%,
due 5/15/01 with a value
of $46,462. $ 45,549
--------------------------------- ---------
Total Repurchase Agreements 95,549
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $537,447) (A) - 100.4% 537,447
---------------------------------
LIABILITIES IN EXCESS OF OTHER
ASSETS - ( 0.4%) (2,021)
--------------------------------- ---------
TOTAL NET ASSETS - 100.0% $535,426
------------------------------------------
(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)
4
<PAGE>
FIFTH THIRD GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- ------------------------------------------------------
PAR SECURITY AMORTIZED
VALUE DESCRIPTION COST
- --------- --------------------------------- ---------
U.S. GOVERNMENT AGENCIES - 100.1%
FEDERAL FARM CREDIT BANK - 7.2%
---------------------------------
$ 17,000 Discount Note, 2/3/00 $ 16,995
10,000 Discount Note, 2/28/00 9,959
15,000 Discount Note, 3/29/00 14,889
--------------------------------- ---------
Total 41,843
--------------------------------- ---------
FEDERAL HOME LOAN BANK - 40.8%
---------------------------------
25,000 Discount Note, 2/2/00 24,996
20,000 Discount Note, 2/16/00 19,954
10,000 Discount Note, 2/23/00 9,967
25,000 Discount Note, 2/25/00 24,905
20,000 5.160%, 3/8/00 19,994
20,000 Discount Note, 3/22/00 19,838
20,000 Discount Note, 3/23/00 19,843
15,000 Discount Note, 3/27/00 14,876
7,000 4.980%, 4/14/00 7,000
10,000 4.970%, 4/20/00 9,999
8,000 5.050%, 4/26/00 7,999
35,000 Discount Note, 4/28/00 34,518
10,000 5.350%, 6/8/00 9,997
15,000 Discount Note, 7/21/00 14,589
--------------------------------- ---------
Total 238,475
--------------------------------- ---------
STUDENT LOAN MARKETING
ASSOCIATION - 33.9%
---------------------------------
40,000 Floating Rate Note, 2/17/00
(6.140%, 2/7/00) (b) 40,000
15,000 Floating Rate Note, 4/20/00
(6.170%, 2/7/00) (b) 15,003
PAR SECURITY AMORTIZED
VALUE DESCRIPTION COST
- --------- --------------------------------- ---------
$ 25,000 Floating Rate Note, 7/20/00
(5.880%, 2/7/00) (b) $ 25,000
118,500 Master Note, 5.850%, 7/1/00 (c) 118,500
--------------------------------- ---------
Total 198,503
--------------------------------- ---------
TENNESSEE VALLEY AUTHORITY - 18.2%
--------------------------------- ---------
12,000 Discount Note, 2/2/00 11,998
25,000 Discount Note, 2/7/00 24,977
25,000 Discount Note, 2/8/00 24,974
20,000 Discount Note, 2/10/00 19,972
25,000 Discount Note, 3/6/00 24,869
--------------------------------- ---------
Total 106,790
--------------------------------- ---------
Total U.S. Government Agencies 585,611
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $585,611) (A) - 100.1% 585,611
---------------------------------
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.1%) (275)
--------------------------------- ---------
TOTAL NET ASSETS - 100.0% $585,336
--------------------------------- ---------
(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)
5
<PAGE>
FIFTH THIRD U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- ------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
U.S. TREASURY NOTES - 26.6%
$ 20,000 6.875%, 3/31/00 $ 20,044
30,000 5.500%, 3/31/00 29,995
20,000 6.250%, 5/31/00 20,053
20,000 5.638%, 6/29/00 19,553
10,000 5.375%, 6/30/00 10,002
40,000 5.375%, 7/31/00 39,989
25,000 6.125%, 7/31/00 25,080
30,000 6.000%, 8/15/00 30,062
20,000 6.250%, 8/31/00 20,083
--------------------------------- ---------
Total U.S. Treasury Notes 214,861
--------------------------------- ---------
REPURCHASE AGREEMENTS - 73.5%
81,000 ABN AMRO, 5.700%, dated 1/31/00,
due 2/1/00, collateralized by U.S.
Treasury Notes, 5.125% - 6.500%, due
8/13/00 - 3/31/03 with a value of
$54,204 and U.S. Treasury Bills due
2/3/00 - 1/4/01 with a value
of $27,673. 81,000
38,000 Banc One, 5.700%, dated 1/31/00,
due 2/1/00, collateralized by U.S.
Treasury Bonds, 6.000% - 8.875%, due
5/15/16 - 2/15/26 with a value of
$4,173, U.S. Treasury Bills due
2/17/00 - 12/7/00 with a value of
$11,051, and U.S. Treasury Notes,
4.625% - 6.875%, due 3/31/00 -
11/30/00 with a value of $23,537. 38,000
81,000 Barclays Capital, 5.700%, dated
1/31/00, due 2/1/00, collateralized
by U.S. Treasury Bonds, 10.375%, due
11/15/12 with a value of $74,342 and
U.S. Treasury Notes, 6.125%, due
7/31/00 with a value of $6,931. 81,000
38,000 Bear Stearns, 5.710%, dated 1/31/00,
due 2/1/00, collateralized by U.S.
Treasury Bonds, 6.000% - 11.750%,
due 5/15/05 - 8/15/29 with a
value of $33,432, U.S. Treasury Bills
due 2/17/00 - 1/4/01 with a value
of $369 and U.S. Treasury Notes,
5.250% - 7.750%, due 11/30/00 -
2/15/07 with a value of $6,984. 38,000
38,000 Chase Securities, 5.700%, dated
1/31/00, due 2/1/00, collateralized
by U.S. Treasury Notes, 4.250% -
7.250%, due 4/30/02 - 8/15/04
with a value of $38,761. 38,000
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
$ 38,000 Deutsche Bank, 5.700%, dated
1/31/00, due 2/1/00, collateralized
by U.S. Treasury Bonds, 9.000%,
due 11/15/18 with a value of
$23,226 and U.S. Treasury Notes,
5.625%, due 9/30/01 with a value
of $14,894. $ 38,000
38,000 J.P. Morgan, 5.700%, dated 1/31/00,
due 2/1/00, collateralized by U.S.
Treasury Bonds, 6.875%, due
8/15/25 with a value of $18,467
and U.S. Treasury Bills due 12/7/00
with a value of $19,732. 38,000
38,000 Nesbitt Burns, 5.720%, dated
1/31/00, due 2/1/00, collateralized
by U.S. Treasury Notes,
5.500% - 6.375%, due 7/31/01-
2/15/03 with a value of $21,632
and U.S. Treasury Bills due
4/6/00 - 6/8/00 with a value
of $16,783. 38,000
38,000 Salomon Smith Barney, 5.680%, dated
1/31/00, due 2/1/00, collateralized
by U.S. Treasury Notes,
5.250% - 6.125%, due 5/31/01 -
12/31/01 with a value of $38,446. 38,000
81,000 SG Cowen, 5.700%, dated 1/31/00,
due 2/1/00, collateralized by U.S.
Treasury Bonds, 5.250%, due 2/15/29
with a value of $168 and U.S. Treasury
Notes, 4.750% - 6.500%, due 5/31/01-
11/15/08 with a value of $81,302. 81,000
83,712 Warburg/Dillon, 5.700%, dated
1/31/00, due 2/1/00, collateralized
by U.S. Treasury Bonds,
8.750% - 13.125%, due
5/15/01 - 5/15/20
with a value of $85,390. 83,712
--------------------------------- ---------
Total Repurchase Agreements 592,712
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $807,573) (A) - 100.1% 807,573
--------------------------------- ---------
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.1)% (1,103)
--------------------------------- ---------
TOTAL NET ASSETS - 100.0% $806,470
--------------------------------- ---------
(a) Also represents cost for federal tax purposes.
(See Notes which are an integral part of the Financial Statements)
6
<PAGE>
FIFTH THIRD TAX EXEMPT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- ------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
COMMERCIAL PAPER - 17.3%
$ 2,000 Dallas Waterworks and Sewer,
3.600%, 4/3/00 $ 2,000
2,000 Dallas Waterworks and Sewer,
3.650%, 5/1/00 2,000
1,000 El Paso, Texas, 3.850%, 2/16/00 1,000
900 Illinois Health Facilities Authority,
3.700%, 2/2/00 900
1,100 Illinois Health Facilities Authority,
3.700%, 2/2/00 1,100
2,000 Illinois Health Facilities Authority,
3.250%, 2/22/00 2,000
3,000 Intermountain Power Agency, Utah,
3.650%, 5/4/00 3,000
950 University of Michigan,
3.350%, 2/23/00 950
3,000 University of Michigan,
3.400%, 2/25/00 3,000
1,209 University of Texas, 3.850%, 2/14/00 1,209
--------------------------------- ---------
Total Commercial Paper 17,159
--------------------------------- ---------
MUNICIPAL BONDS - 70.1%
GENERAL OBLIGATION - 4.0%
---------------------------------
100 Bentworth, Pennsylvania,
School District, 5.600%, due 3/15/07,
Prerefunded 3/15/00 @100 100
1,110 Knox County, Tennessee,
4.500%, due 3/1/00 1,110
800 Milan, Michigan, Area Schools,
4.000%, due 4/3/00 801
565 Neenah, Wisconsin, Promissary
Notes, Series A, 3.100%, due 3/1/00 565
1,400 Syracuse, New York, 3.750%,
due 5/19/00 1,401
--------------------------------- ---------
Total 3,977
--------------------------------- ---------
REVENUE BONDS - 66.1%
---------------------------------
1,700 Burke County, Georgia, Development
Authority Pollution Control, Floating
Rate Note, 7/1/24
(3.550%, 2/1/00) (b) 1,700
3,200 Chicago, Illinois, O'Hare International
Airport, Floating Rate Note, 1/1/15
(3.150%, 2/2/00) (b) 3,200
1,000 Delaware County, Pennsylvania,
Industrial Development Authority
Airport Facilities, Floating Rate Note,
12/1/15 (3.650%, 2/1/00) (b) 1,000
1,900 Detroit, Michigan, Sewer Disposal,
Floating Rate Note, 7/1/23
(3.250%, 2/2/00) (b) 1,900
3,000 Farmington, New Mexico, Pollution
Control, Floating Rate Note, 5/1/24
(3.500%, 2/1/00) (b) 3,000
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
$ 3,000 Farmington, New Mexico, Pollution
Control, Floating Rate Note, 9/1/24
(3.500%, 2/1/00) (b) $ 3,000
485 Franklin County, Ohio, Hospital,
Floating Rate Note, 12/1/11
(3.270%, 2/2/00) (b) 485
550 Grand Rapids, Michigan,
Water Supply, Floating Rate Note,
1/1/20 (3.100%, 2/3/00) (b) 550
3,700 Hamilton County, Ohio, Hospital
Facilities, Floating Rate Note, 1/1/18
(3.130%, 2/2/00) (b) 3,700
2,500 Iowa Financial Authority, Floating
Rate Note, 8/15/12 (3.250%,
2/2/00) (b) 2,500
2,500 Kansas City, Missouri, Industrial
Development Authority Hospital,
Floating Rate Note, 10/15/14
(3.600%, 2/1/00) (b) 2,500
700 Kansas City, Missouri, Industrial
Development Authority Hospital,
Floating Rate Note, 4/15/14
(3.600%, 2/1/00) (b) 700
1,000 Kansas City, Missouri, Industrial
Development Authority Hospital,
Floating Rate Note, 10/15/15
(3.600%, 2/1/00) (b) 1,000
600 Lincoln County, Wyoming, Pollution
Control, Floating Rate Note, 11/1/14
(3.650%, 2/1/00) (b) 600
4,500 Long Island Power Authority
Electric Systems, New York, Floating
Rate Note, 5/1/33 (3.500%,
2/1/00) (b) 4,500
1,700 Los Angeles, California, Regional
Airports, Floating Rate Note,
12/1/25 (3.700%, 2/1/00) (b) 1,700
400 Lower Neches Valley Authority,
Texas, Floating Rate Note, 2/15/17
(3.450%, 2/16/00) (b) 400
1,200 Maryland State Health and Higher
Education, Floating Rate Note,
7/1/24 (3.300%, 2/2/00) (b) 1,200
1,100 Massachusetts State Industrial
Financial Agency, 7.000%, due
11/1/19, Prerefunded 11/1/00 @100 1,124
500 Michigan State Hospital Financial
Authority, 7.100%, due 7/1/18,
Prerefunded 7/1/00 @102 512
500 Michigan State Hospital Financial
Authority, Floating Rate Note,
12/1/23 (3.320%, 2/2/00) (b) 500
(See Notes which are an integral part of the Financial Statements)
7
<PAGE>
FIFTH THIRD TAX EXEMPT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- -------------------------------------------------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
$ 1,170 Michigan State Hospital Financial
Authority, Hospital Equipment,
Floating Rate Note, 12/1/23
(3.320%, 2/2/00) (b) $ 1,170
1,400 Montgomery County, Ohio, Health
Care Facilities, Floating Rate Note,
12/1/08 (3.350%, 2/1/00) (b) 1,400
4,500 New York City, New York, Municipal
Water Authority, Water & Sewer
System, Floating Rate Note, 6/15/24
(3.500%, 2/1/00) (b) 4,500
900 New York State Tollway Authority,
Floating Rate Note, 1/1/27
(3.850%, 2/1/00) (b) 900
2,500 North Carolina Educational Facilities,
Floating Rate Note, 9/1/20
(3.130%, 2/2/00) (b) 2,500
4,500 Perry County, Mississippi, Pollution
Control, Floating Rate Note, 3/1/02
(3.500%, 2/1/00) (b) 4,500
2,000 Pittsburgh, Pennsylvania, Floating
Rate Note, 3/1/20
(3.280%, 2/3/00) (b) 2,000
500 Plaquemines, Louisiana, Port Harbor
& Terminal District Port Facilities,
Floating Rate Note, 3/15/06
(3.000%, 3/15/00) (Next call
3/15/00 @100) (b) 500
500 Purdue University, Indiana, 5.400%,
due 7/1/00 503
1,300 Stevenson, Alabama, Industrial
Development Board Environmental
Impact, Floating Rate Note, 11/1/16
(3.650%, 2/1/00) (b) 1,300
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- --------------------------------- ---------
$ 4,610 Washington State Health Care
Facilities Authority, Floating Rate
Note, 10/1/05 (3.500%, 2/1/00) (b)$ 4,610
3,000 Wisconsin State Health Facilities
Authority, Floating Rate Note,
1/1/16 (3.150%, 2/2/00) (b) 3,000
2,700 York County, Pennsylvania,
Industrial Development Authority
Pollution Control, Floating Rate
Note, 9/1/20 (3.130%, 2/2/00) (b) 2,700
--------------------------------- ---------
Total 65,354
--------------------------------- ---------
Total Municipal Bonds 69,331
--------------------------------- ---------
MONEY MARKET - 13.8%
4,959 Federated Tax Free Trust 4,959
8,714 SEI Institutional Tax Free Fund 8,714
--------------------------------- ---------
Total Money Market 13,673
--------------------------------- ---------
TOTAL INVESTMENTS (AMORTIZED
COST $100,163) (A) - 101.2% 100,163
--------------------------------- ---------
LIABILITIES IN EXCESS OF OTHER
ASSETS - (1.2%) (1,226)
--------------------------------- ---------
TOTAL NET ASSETS - 100.0% $98,937
--------------------------------- ---------
(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)
8
<PAGE>
FIFTH THIRD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2000
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME GOVERNMENT U.S. TREASURY TAX EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
ASSETS: FUND FUND FUND FUND
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at amortized cost (Cost $441,898; $585,611; $441,898 $585,611 $214,861 $100,163
$214,861 and $100,163, respectively)
Repurchase agreements, at amortized cost (Cost $95,549; $0;
$592,712 and $0, respectively) 95,549 -- 592,712 --
-------------- -------------- -------------- --------------
Total Investments 537,447 585,611 807,573 100,163
Cash 1 40 1 --
Interest receivable 618 2,686 2,752 429
Prepaid expenses and other assets 14 105 15 27
-------------- -------------- -------------- --------------
Total Assets 538,080 588,442 810,341 100,619
-------------- -------------- -------------- --------------
LIABILITIES:
Dividends payable 2,373 2,524 3,601 248
Payable for investments purchased -- -- -- 1,390
Accrued expenses and other payables:
Investment advisory fees 173 202 187 --
Administration fees 38 149 22 25
Distribution fees 23 58 -- 1
Other 47 173 61 18
-------------- -------------- -------------- --------------
Total Liabilities 2,654 3,106 3,871 1,682
-------------- -------------- -------------- --------------
NET ASSETS:
Paid-in Capital 535,432 585,311 806,423 98,947
Accumulated undistributed net realized gains
(losses) on investment transactions (6) (390) 27 (10)
Undistributed net investment income -- 415 20 --
-------------- -------------- -------------- --------------
Total Net Assets $535,426 $585,336 $806,470 $ 98,937
============== ============== ============== ==============
Net assets:
Institutional shares 420,384 249,795 806,470 77,320
Investment A shares 115,042 335,541 NA 21,617
-------------- -------------- -------------- --------------
Total $535,426 $585,336 $806,470 $ 98,937
============== ============== ============== ==============
Outstanding units of beneficial interest (shares)
Institutional shares 420,391 249,768 806,420 77,320
Investment A shares 115,043 335,562 NA 21,628
-------------- -------------- -------------- --------------
Total 535,434 585,330 806,420 98,948
============== ============== ============== ==============
Net asset value
Offering and redemption price per share -
Institutional Shares and Investment A Shares $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============== ==============
(See Notes which are an integral part of the Financial Statements)
</TABLE>
9
<PAGE>
FIFTH THIRD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
- --------------------------------------------------------------------------------
<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>
INVESTMENT INCOME:
Interest income $13,404 $16,467 $23,685 $1,344
-------------- -------------- -------------- --------------
Total Income 13,404 16,467 23,685 1,344
-------------- -------------- -------------- --------------
EXPENSES:
Investment Advisory fees 964 1,227 1,803 198
Administrative fees 418 651 761 65
Distribution services - Investment A shares 118 450 -- 32
Fund accounting fees 50 98 92 23
Transfer agent fees 17 25 23 11
Trustees' fees 2 3 4 1
Audit and legal fees 8 15 20 5
Custodian fees 15 27 36 4
Miscellaneous fees 24 10 56 10
-------------- -------------- -------------- --------------
Total Expenses 1,616 2,506 2,795 349
-------------- -------------- -------------- --------------
Less fees voluntarily reduced (252) (397) (1,082) (221)
-------------- -------------- -------------- --------------
Net Expenses 1,364 2,109 1,713 128
-------------- -------------- -------------- --------------
Net Investment Income 12,040 14,358 21,972 1,216
-------------- -------------- -------------- --------------
REALIZED AND UNREALIZED LOSSES FROM INVESTMENTS:
Net realized losses from investment transactions (6) (1) (200) --
-------------- -------------- -------------- --------------
Change in net assets resulting from operations $12,034 $14,357 $21,772 $1,216
============== ============== ============== ==============
(See Notes which are in an integral part of the Financial Statements)
</TABLE>
10
<PAGE>
FIFTH THIRD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT
PRIME MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JAN. 31, 2000 YEAR ENDED JAN. 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE /(DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 12,040 $ 19,140 $ 14,358 $ 30,404
Net realized gains/(losses) on investment transactions (6) 3 (1) 27
-------------- -------------- -------------- --------------
Change in net assets resulting from operations 12,034 19,143 14,357 30,431
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO INSTITUTIONAL SHAREHOLDERS:
From net investment income (9,774) (16,776) (6,082) (12,423)
DISTRIBUTIONS TO INVESTMENT A SHAREHOLDERS:
From net investment income (2,266) (2,365) (8,276) (17,952)
-------------- -------------- -------------- --------------
Change in net assets from shareholder distributions (12,040) (19,141) (14,358) (30,375)
-------------- -------------- -------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS:
Proceeds from shares issued 814,207 1,164,194 513,603 683,747
Assets acquired from reorganization -- -- -- 445,341
Dividends reinvested 439 440 625 7,325
Cost of shares redeemed (702,604) (1,146,146) (562,983) (873,697)
-------------- -------------- -------------- --------------
Change in net assets from share transactions 112,042 18,488 (48,755) 262,716
-------------- -------------- -------------- --------------
Change in net assets 112,036 18,490 (48,756) 262,772
NET ASSETS:
Beginning of period 423,390 404,900 634,092 371,320
-------------- -------------- -------------- --------------
End of Period $ 535,426 $ 423,390 $ 585,336 $ 634,092
============== ============== ============== ==============
(See notes which are an integral part of the financial statements)
</TABLE>
11
<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
-------------------------------- ----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JAN. 31, 2000 YEAR ENDED JAN. 31, 2000 PERIOD ENDED YEAR ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999 (A)SEPT. 30, 1998
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INCREASE /(DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 21,972 $ 42,353 $ 1,216 $ 968 $ 1,756
Net realized gains/(losses)
on investment transactions (200) 236 -- (8) (2)
------------- -------------- -------------- -------------- --------------
Change in net assets resulting
from operations 21,772 42,589 1,216 960 1,754
------------- -------------- -------------- -------------- --------------
DISTRIBUTIONS TO INSTITUTIONAL
SHAREHOLDERS:
From net investment income (21,972) (42,379) (380) (188) (6)
DISTRIBUTIONS TO INVESTMENT A
SHAREHOLDERS:
From net investment income -- -- (836) (780) (1,750)
------------- -------------- -------------- -------------- --------------
Change in net assets from
shareholder distributions (21,972) (42,379) (1,216) (968) (1,756)
------------- -------------- -------------- -------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Proceeds from shares issued 1,348,612 2,079,693 110,743 97,644 182,537
Dividends reinvested 2,819 7,299 37 267 1,648
Cost of shares redeemed (1,401,047) (2,107,005) (56,240) (105,953) (192,020)
-------------- -------------- -------------- -------------- --------------
Change in net assets from
share transactions (49,616) (20,013) 54,540 (8,042) (7,835)
-------------- -------------- -------------- -------------- --------------
Change in net assets (49,816) (19,803) 54,540 (8,050) (7,837)
NET ASSETS:
Beginning of period 856,286 876,089 44,397 52,447 60,284
-------------- -------------- -------------- -------------- --------------
End of Period $ 806,470 $ 856,286 $ 98,937 $ 44,397 $ 52,447
============== ============== ============== ============== ==============
</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)
12
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2000 (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 "Act"), as an open-end
management investment company. At January 31, 2000, the Trust consisted of
sixteen 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 one
class of 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 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 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. Short-term securities with
remaining maturities of sixty days or less at the time of purchase may be valued
at amortized cost, which approximates fair market value. In addition, the Funds
may not (a) purchase any instruments with a remaining maturity greater than 397
days unless such instrument is subject to a demand feature, or (b) maintain a
dollar-weighted average maturity which exceeds 90 days.
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.
Dividend
13
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
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. 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.
14
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
Transactions in Fund shares were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PRIME GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JAN. 31, 2000 YEAR ENDED JAN. 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued $ 659,195 $ 1,076,548 $ 258,465 $451,018
Dividends reinvested 439 440 -- --
Shares redeemed (587,611) (1,096,972) (261,657) (419,089)
-------------- -------------- -------------- --------------
INSTITUTIONAL SHARES: $ 72,023 $ (19,984) $ (3,192) $ 31,929
-------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued $ 155,012 $ 87,646 $ 255,138 $232,729
Shares issued for reorganization -- -- -- 445,341
Dividends reinvested -- -- 625 7,325
Shares redeemed (114,993) (49,174) (301,326) (454,608)
-------------- -------------- -------------- --------------
INVESTMENT A SHARES $ 40,019 $ 38,472 $ (45,563) $ 230,787
-------------- -------------- -------------- --------------
TOTAL NET INCREASE (DECREASE) FROM
CAPITAL TRANSACTIONS $ 112,042 $ 18,488 $ (48,755) $ 262,716
============== ============== ============== ==============
SHARE TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued 659,195 1,076,548 258,465 451,018
Dividends reinvested 439 440 -- --
Shares redeemed (587,611) (1,096,970) (261,657) (419,089)
-------------- -------------- -------------- --------------
INSTITUTIONAL SHARES: 72,023 (19,982) (3,192) 31,929
-------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued 155,012 87,646 255,138 232,666
Shares issued for reorganization -- -- -- 445,357
Dividends reinvested -- -- 625 7,325
Shares redeemed (114,993) (49,174) (301,338) (454,494)
-------------- -------------- -------------- --------------
INVESTMENT A SHARES 40,019 38,472 (45,575) 230,854
-------------- -------------- -------------- --------------
TOTAL NET INCREASE/(DECREASE) FROM
CAPITAL TRANSACTIONS 112,042 18,490 (48,767) 262,783
============== ============== ============== ==============
</TABLE>
15
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2000 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. TREASURY TAX EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JAN. 31, 2000 YEAR ENDED JAN. 31, 2000 PERIOD ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999*
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued $ 1,348,612 $ 2,079,693 $107,823 $ 87,092
Dividends reinvested 2,819 7,299 -- --
Shares redeemed (1,401,047) (2,107,005) (48,186) (77,363)
-------------- -------------- -------------- --------------
INSTITUTIONAL SHARES: $ (49,616) $ (20,013) $ 59,637 $ 9,729
-------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued $ -- $ -- $ 2,920 $ 10,552
Dividends reinvested -- -- 37 267
Shares redeemed -- -- (8,054) (28,590)
-------------- -------------- -------------- --------------
INVESTMENT A SHARES $ -- $ -- $ (5,097) $(17,771)
-------------- -------------- -------------- --------------
TOTAL NET INCREASE (DECREASE) FROM
CAPITAL TRANSACTIONS $ (49,616) $ (20,013) $ 54,540 $ (8,042)
============== ============== ============== ==============
SHARE TRANSACTIONS:
INSTITUTIONAL SHARES:
Shares issued 1,348,612 2,079,689 107,823 87,092
Dividends reinvested 2,819 7,299 -- --
Shares redeemed (1,401,047) (2,107,005) (48,186) (77,363)
-------------- -------------- -------------- --------------
INSTITUTIONAL SHARES: (49,616) (20,017) 59,637 9,729
-------------- -------------- -------------- --------------
INVESTMENT A SHARES:
Shares issued -- -- 2,920 10,552
Dividends reinvested -- -- 37 266
Shares redeemed -- -- (8,054) (28,589)
-------------- -------------- -------------- --------------
INVESTMENT A SHARES -- -- (5,097) (17,771)
-------------- -------------- -------------- --------------
TOTAL NET INCREASE/(DECREASE) FROM
CAPITAL TRANSACTIONS (49,616) (20,017) 54,540 (8,042)
============== ============== ============== ==============
</TABLE>
* Reflects operations for the period October 1, 1998 through July 31, 1999.
16
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
(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 six months ended January 31, 2000, the Advisor waived $48 and $631 and $198
in advisory fees for the Prime Money Market Fund, the U.S. Treasury Money Market
Fund and the Tax Exempt Money Market Fund, respectively. For the six months
ended January 31, 2000, the Advisor reimbursed certain operating expenses of $23
for the Tax Exempt Money Market Fund.
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. For the six months
ended January 31, 2000, the administrator waived $204, $307, and $451 in
administration fees for the Prime Money Market Fund, the Government Money Market
Fund and the U.S. Treasury 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 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 six months ended January 31, 2000, the distributor waived $90 in
distribution fees for the Government Money Market Fund.
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 is the Funds' custodian & accountant 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.
17
<PAGE>
FIFTH THIRD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
(5) OTHER ASSETS
Fidelity Bond and Errors / Omissions insurance coverage for the Funds and its
Officers and Trustees had been obtained through ICI Mutual Insurance Company
(ICI Mutual), an industry-sponsored
mutual insurance company. The Funds include, in other assets certificates of
deposit that collateralized standby letters of credit sponsoring potential
capital needs of ICI Mutual. The following table details the certificates of
deposit of the Funds:
CERTIFICATES
OF DEPOSIT
----------
Government Money Market Fund $175,000
Tax Exempt Money Market Fund $ 27,000
(6) 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, 1999, 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
----------------------------
Government Money Market Fund $293 2002
2004
Tax Exempt Money Market Fund 2 2007
18
<PAGE>
<TABLE>
<CAPTION>
FIFTH THIRD PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- ----------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JAN. 31, 2000 YEAR ENDED JULY 31,
--------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES
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 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
Total from investment operations 0.03 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
Total distributions (0.03) (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 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 2.56%(a) 4.76% 5.25% 5.11% 5.20% 5.25%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.52%(b) 0.52% 0.52% 0.52% 0.49% 0.49%
Net investment income 5.04%(b) 4.66% 5.13% 4.99% 5.07% 5.12%
Expense waiver/reimbursement (c) 0.10%(b) 0.11% 0.12% 0.09% 0.08% 0.09%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 420,384 $ 348,366 $ 368,348 $ 341,827 $ 300,821 $ 223,640
SIX MONTHS
ENDED
JAN. 31, 2000 YEAR ENDED JULY 31,
-------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT A SHARES
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 0.02 0.04 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
Total from investment operations 0.02 0.04 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
Total distributions (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 2.43%(a) 4.53% 5.25% 5.11% 5.20% 5.25%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.77%(b) 0.75% 0.52% 0.52% 0.49% 0.49%
Net investment income 4.81%(b) 4.39% 5.13% 4.99% 5.06% 5.12%
Expense waiver/reimbursement (c) 0.10%(b) 0.13% 0.47% 0.44% 0.40% 0.44%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 115,042 $ 75,024 $ 36,552 $ 33,438 $ 19,341 $ 10,169
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
</TABLE>
19
<PAGE>
FIFTH THIRD GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JAN. 31, 2000 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES
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 0.02 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
Total from investment operations 0.02 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
Total distributions (0.02) (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 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 2.44%(a) 4.60% 5.13% 5.01% 5.11% 5.22%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.57%(b) 0.56% 0.52% 0.51% 0.50% 0.50%
Net investment income 4.80%(b) 4.52% 5.02% 4.90% 4.99% 5.17%
Expense waiver/reimbursement (c) 0.10%(b) 0.11% 0.12% 0.09% 0.07% 0.20%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 249,795 $ 252,987 $ 221,034 $ 162,543 $ 132,326 $ 129,603
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JAN. 31, 2000 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT A SHARES
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 0.02 0.04 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
Total from investment operations 0.02 0.04 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
Total distributions (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 2.34%(a) 4.41% 5.13% 5.00% 5.11% 5.22%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.77%(b) 0.75% 0.52% 0.51% 0.51% 0.50%
Net investment income 4.59%(b) 4.26% 5.02% 4.90% 4.97% 5.17%
Expense waiver/reimbursement (c) 0.15%(b) 0.17% 0.47% 0.44% 0.42% 0.45%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 335,541 $ 381,105 $ 150,286 $ 110,543 $ 68,884 $ 45,726
(a) Not annualized.
(b) Annualized.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
</TABLE>
20
<PAGE>
FIFTH THIRD U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JAN. 31, 2000 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES
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 0.02 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
Total from investment operations 0.02 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
Total distributions (0.02) (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 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN 2.49%(a) 4.68% 5.31% 5.11% 5.24% 5.18%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.38%(b) 0.38% 0.38% 0.42% 0.43% 0.44%
Net investment income 4.87%(b) 4.57% 5.19% 5.00% 5.10% 5.07%
Expense waiver/reimbursement (c) 0.24%(b) 0.24% 0.24% 0.17% 0.12% 0.11%
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 806,470 $ 856,286 $ 876,089 $ 539,087 $ 489,228 $ 321,640
(a) Not annualized.
(b) Annualized.
(c)This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See notes which are an integral part of the financial statements)
</TABLE>
21
<PAGE>
FIFTH THIRD TAX EXEMPT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, SEPT. 30,
(UNAUDITED) 1999* 1998**
------------ -------- --------
INSTITUTIONAL SHARES
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.03 --
-------- -------- --------
Total from investment operations 0.02 0.03 --
-------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.02) (0.03) --
-------- -------- --------
Total distributions (0.02) (0.03) --
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
======== ======== ========
TOTAL RETURN 1.55%(a) 2.24%(a) 2.74%(d)
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.30%(b) 0.61%(b) 0.63%(b)
Net investment income 3.11%(b) 2.66%(b) 3.09%(b)
Expense waiver/reimbursement (c) 0.50%(b) 0.33%(b)--(b)
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 77,320 $ 17,682 $ 7,953
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JAN. 31, 2000 ------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT A SHARES***
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 0.02 0.03 0.03 0.03 0.03 0.03
-------- -------- -------- -------- -------- --------
Total from investment operations 0.02 0.03 0.03 0.03 0.03 0.03
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions to shareholders from
net investment income (0.02) (0.03) (0.03) (0.03) (0.03) (0.03)
-------- -------- -------- -------- -------- --------
Total distributions (0.02) (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 1.52%(a) 2.18%(a) 2.74% 2.72% 2.67% 3.02%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.37%(b) 0.75%(b) 0.71% 0.80% 0.89% 0.81%
Net investment income 2.98%(b) 2.60%(b) 2.88% 2.79% 2.66% 2.99%
Expense waiver/reimbursement (c) 0.68%(b) 0.44%(b) -- -- -- --
SUPPLEMENTAL DATA:
Net Assets at end of period ($000) $ 21,617 $ 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 Cardinal
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 expense and net
investment income ratios shown above.
(d)Represents total return based the activity of Investment A Shares for the
period from October 1, 1997 to September 20, 1998 and and the activity of the
Institutional Shares for the period from September 21, 1998 to September 30,
1998. Total return for the Institutional Shares for the period from September
21, 1998 (commencement of operations) to September 30, 1998 was 3.16%
annualized.
(See notes which are an integral part of the financial statements)
22
<PAGE>
FIFTH THIRD FUNDS
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 Directors.
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.
